B-21602, DECEMBER 4, 1941, 21 COMP. GEN. 519

B-21602: Dec 4, 1941

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FOR ENLISTED MEN OF THE FIRST GRADE IS NOT APPLICABLE TO CHIEF PETTY OFFICERS OF THE NAVY UNDER ACTING APPOINTMENT. AN ENLISTED MAN OF THE NAVY WAS TRANSFERRED TO THE FLEET NAVAL RESERVE UNDER THE ACT OF AUGUST 29. HIS RETAINER PAY WAS COMPUTED ON THE PAY OF A CHIEF PETTY OFFICER UNDER DECISIONS OF THE FORMER COMPTROLLER OF THE TREASURY. WHICH LATTER PAY WAS SAVED TO HIM UNDER SECTION 3 OF THE ACT OF MAY 31. 1941: I HAVE YOUR LETTER OF OCTOBER 30. PUBLIC LAW 236 IS QUOTED: "BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED. THAT ENLISTED MEN OF THE NAVY AND MARINE CORPS WHO WERE TRANSFERRED TO THE FLEET RESERVE PRIOR TO OCTOBER 1.

B-21602, DECEMBER 4, 1941, 21 COMP. GEN. 519

PAY OF NAVAL PERSONNEL - ADJUSTMENT UNDER SELECTIVE TRAINING AND SERVICE ACT OF 1940, AND FLEET RESERVE ACT OF AUGUST 21, 1941 THE MONTHLY BASE PAY OF $126 ESTABLISHED BY SECTION 12 (A) OF THE SELECTIVE TRAINING AND SERVICE ACT OF SEPTEMBER 16, 1940, FOR ENLISTED MEN OF THE FIRST GRADE IS NOT APPLICABLE TO CHIEF PETTY OFFICERS OF THE NAVY UNDER ACTING APPOINTMENT, AND, THEREFORE, THE COMPUTATION OF THEIR ACTIVE DUTY PAY, OR THEIR RETAINER OR RETIRED PAY UNDER THE ACT OF AUGUST 21, 1941, SHOULD CONTINUE TO BE MADE ON THE BASIS OF THE BASE PAY OF $99 PER MONTH SPECIFICALLY ESTABLISHED FOR SUCH OFFICERS BY SECTION 10 OF THE ACT OF JUNE 10, 1922. WHERE, PRIOR TO JULY 1, 1922, AN ENLISTED MAN OF THE NAVY WAS TRANSFERRED TO THE FLEET NAVAL RESERVE UNDER THE ACT OF AUGUST 29, 1916, AS A PETTY OFFICER, FIRST CLASS, AND BY REASON OF ADVANCEMENT THEREAFTER, WHILE ON ACTIVE DUTY DURING THE WORLD WAR, HIS RETAINER PAY WAS COMPUTED ON THE PAY OF A CHIEF PETTY OFFICER UNDER DECISIONS OF THE FORMER COMPTROLLER OF THE TREASURY, WHICH LATTER PAY WAS SAVED TO HIM UNDER SECTION 3 OF THE ACT OF MAY 31, 1924, THE ONLY ADJUSTMENT OF HIS RETAINER OR RETIRED PAY UNDER THE ACT OF AUGUST 21, 1941, WOULD BE FOR COMPUTATION ON THE RATING OF PETTY OFFICER, FIRST CLASS.

ASSISTANT COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF THE NAVY, DECEMBER 4, 1941:

I HAVE YOUR LETTER OF OCTOBER 30, 1941, TRANSMITTING A LETTER FROM THE OFFICER IN CHARGE, RETAINER PAY DIVISION, BUREAU OF SUPPLIES AND ACCOUNTS, DATED OCTOBER 23, 1941, AS FOLLOWS:

1. PASSAGE OF PUBLIC LAW 236, 77TH CONGRESS, PROVIDING FOR ADJUSTMENT OF THE INACTIVE-DUTY PAY OF CERTAIN TRANSFERRED AND RETIRED MEMBERS OF THE FLEET RESERVE, RAISES QUESTIONS REGARDING PROSPECTIVE DISBURSEMENTS TO BE MADE BY ME, AS HEREINAFTER OUTLINED.

PUBLIC LAW 236 IS QUOTED:

"BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT ENLISTED MEN OF THE NAVY AND MARINE CORPS WHO WERE TRANSFERRED TO THE FLEET RESERVE PRIOR TO OCTOBER 1, 1940, AFTER COMPLETION OF SIXTEEN OR TWENTY YEARS OF SERVICE, AND ALL SUCH TRANSFERRED MEMBERS OF THE FLEET RESERVE WHO WERE SUBSEQUENTLY RETIRED PRIOR TO OCTOBER 1, 1940, SHALL, FROM AND AFTER OCTOBER 1, 1940, BE ENTITLED TO RETAINER PAY OR RETIRED PAY COMPUTED ON THE BASIS OF THE INCREASED RATES OF BASE PAY AND LONGEVITY PAY PROVIDED FOR ENLISTED MEN BY SECTION 12 OF THE SELECTIVE TRAINING AND SERVICE ACT OF 1940: PROVIDED, THAT NOTHING IN THIS ACT SHALL OPERATE TO REDUCE THE PAY NOW BEING RECEIVED BY ANY SUCH ENLISTED MEN.'

SECTION 12 OF THE ACT OF 16 SEPTEMBER 1940 IS QUOTED:

"SEC. 12 (A) THE MONTHLY BASE PAY OF ENLISTED MEN OF THE ARMY AND THE MARINE CORPS SHALL BE AS FOLLOWS: ENLISTED MEN OF THE FIRST GRADE, $126; ENLISTED MEN OF THE SECOND GRADE, $84; ENLISTED MEN OF THE THIRD GRADE, $72; ENLISTED MEN OF THE FOURTH GRADE, $60; ENLISTED MEN OF THE FIFTH GRADE, $54; ENLISTED MEN OF THE SIXTH GRADE, $36; ENLISTED MEN OF THE SEVENTH GRADE, $30; EXCEPT THAT THE MONTHLY BASE PAY OF ENLISTED MEN WITH LESS THAN FOUR MONTHS' SERVICE DURING THEIR FIRST ENLISTMENT PERIOD AND OF ENLISTED MEN OF THE SEVENTH GRADE WHOSE INEFFICIENCY OR OTHER UNFITNESS HAS BEEN DETERMINED UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OF WAR, AND THE SECRETARY OF THE NAVY, RESPECTIVELY, SHALL BE $21. THE PAY FOR SPECIALISTS' RATINGS, WHICH SHALL BE IN ADDITION TO MONTHLY BASE PAY, SHALL BE AS FOLLOWS: FIRST CLASS, $30; SECOND CLASS, $25; THIRD CLASS, $20; FOURTH CLASS, $15; FIFTH CLASS, $6; SIXTH CLASS, $3. ENLISTED MEN OF THE ARMY AND THE MARINE CORPS SHALL RECEIVE, AS A PERMANENT ADDITION TO THEIR PAY, AN INCREASE OF 10 PERCENTUM OF THEIR BASE PAY AND PAY FOR SPECIALISTS' RATINGS UPON COMPLETION OF THE FIRST FOUR YEARS OF SERVICE, AND AN ADDITIONAL INCREASE OF 5 PERCENTUM OF SUCH BASE PAY AND PAY FOR SPECIALISTS' RATINGS FOR EACH FOUR YEARS OF SERVICE THEREAFTER, BUT THE TOTAL OF SUCH INCREASES SHALL NOT EXCEED 25 PERCENTUM. ENLISTED MEN OF THE NAVY SHALL BE ENTITLED TO RECEIVE AT LEAST THE SAME PAY AND ALLOWANCES AS ARE PROVIDED FOR ENLISTED MEN IN SIMILAR GRADES IN THE ARMY AND MARINE CORPS.

"/B) THE PAY FOR SPECIALISTS' RATING RECEIVED BY AN ENLISTED MAN OF THE ARMY OR THE MARINE CORPS AT THE TIME OF HIS RETIREMENT SHALL BE INCLUDED IN THE COMPUTATION OF HIS RETIRED PAY.

"/C) THE PAY OF ENLISTED MEN OF THE SIXTH GRADE OF THE NATIONAL GUARD FOR EACH ARMORY DRILL PERIOD, AND FOR EACH DAY OF PARTICIPATION IN EXERCISES UNDER SECTIONS 94, 97, AND 99 OF THE NATIONAL DEFENSE ACT, SHALL BE $1.20.

"/D) NO BACK PAY OR ALLOWANCES SHALL ACCRUE BY REASON OF THIS ACT FOR ANY PERIOD PRIOR TO OCTOBER 1, 1940.

"/E) NOTHING IN THIS ACT SHALL OPERATE TO REDUCE THE PAY NOW BEING RECEIVED BY ANY RETIRED ENLISTED MAN.

"/F) THE PROVISIONS OF THIS SECTION SHALL BE EFFECTIVE ON AND AFTER OCTOBER 1, 1940. THEREAFTER ALL LAWS AND PARTS OF LAWS INSOFAR AS THE SAME ARE INCONSISTENT HEREWITH OR IN CONFLICT WITH THE PROVISIONS HEREOF ARE HEREBY REPEALED.'

SECTION 10 OF THE ACT OF 10 JUNE 1922 IS QUOTED IN PART:

"ON AND AFTER JULY 1, 1922, FOR PURPOSES OF PAY, ENLISTED MEN OF THE NAVY AND COAST GUARD SHALL BE DISTRIBUTED IN SEVEN GRADES, WITH MONTHLY BASE RATES OF PAY AS FOLLOWS: FIRST GRADE, $126; SECOND GRADE, $84; THIRD GRADE, $72; FOURTH GRADE, $60; FIFTH GRADE, $54; SIXTH GRADE, $36; SEVENTH GRADE, $21. CHIEF PETTY OFFICERS UNDER ACTING APPOINTMENT SHALL BE INCLUDED IN THE FIRST GRADE AT A MONTHLY BASE PAY OF $99.'

2. FOR THE PURPOSE OF RENDERING COMPARISON EASY, THE BASE PAY OF ENLISTED MEN OF THE NAVY, AS PRESCRIBED BY SECTION 10 OF THE ACT OF 10 JUNE 1922 AND BY SECTION 12 OF THE ACT OF 16 SEPTEMBER 1940, IS TABULATED BY GRADES:

BASE PAY (ACT JUNE BASE PAY (ACT SEPT.

GRADE10, 1922) 16, 1940)

1 $126 $126

1 A (1) 99 (2)

2 84 84

3 72 72

4 60 60

5 54 54

6 36 36

7 21 (3) 21 (1) CPO ( AA). (2) NOT STIPULATED. (3) DURING FIRST 4 MONTHS' SERVICE AND APPLICABLE TO MEN WHOSE

INEFFICIENCY OR UNFITNESS HAS BEEN DETERMINED BY THE SECRETARY OF

THE NAVY.

3. BY THE PROVISIONS OF PUBLIC, 236, IT IS CLEAR THAT FLEET RESERVISTS OR RETIRED ENLISTED MEN, IN GRADE 7, ARE ENTITLED TO HAVE THEIR RETAINER OR RETIRED PAY ADJUSTED AND THAT THE COMPUTATION SHOULD BE BASED ON THE $30 RATE RATHER THAN THE $21 RATE. IT ALSO APPEARS THAT SECTION 10 OF THE ACT OF JUNE 10, 1922, IS INCONSISTENT WITH SECTION 12 OF THE ACT OF SEPTEMBER 16, 1940, IN THAT THE PAY OF A CHIEF PETTY OFFICER, ( AA) IS NOT NOW STIPULATED AND THAT, BY OPERATION OF SECTION 12 (F) OF THE ACT OF SEPTEMBER 16, 1940, THE DEFINITE PROVISION FIXING THE PAY OF CHIEF PETTY OFFICERS, ( AA), FOUND IN THE LAST SENTENCE OF THE FIRST PARAGRAPH OF THE ACT OF JUNE 10, 1922, IS REPEALED. IF THE LATTER CONCLUSION IS CORRECT, THE ACTIVE DUTY BASE PAY OF ALL CHIEF PETTY OFFICERS, ( AA) IS $126 PER MONTH, EFFECTIVE 1 OCTOBER 1940, AND THE RETAINER PAY OR RETIRED PAY OF ALL CHIEF PETTY OFFICERS, ( AA) SHOULD THEREAFTER BE COMPUTED ON THAT RATE, USING THE PERCENTAGES STATED IN SECTIONS 203 AND 204 OF THE NAVAL RESERVE ACT OF 1938, RATHER THAN ON A PERCENTAGE OF "THE BASE PAY THEY WERE RECEIVING AT THE TIME OF TRANSFER, PLUS ALL PERMANENT ADDITIONS THERETO.' CORROBORATION IS REQUESTED.

4. A REQUEST HAS BEEN RECEIVED FROM ROYDEN R. DANFORD TO ADJUST HIS RETIRED PAY FROM $103.46 PER MONTH TO $119.70, THE REQUEST BEING BASED ON PUBLIC, 236. THE PERTINENT FACTS OF THE CASE ARE AS FOLLOWS:

ON 14 FEBRUARY 1917 HE WAS TRANSFERRED TO THE FLEET NAVAL RESERVE, CLASS 1 D, IN THE CONFIRMED RATING OF WATER TENDER, HAVING COMPLETED OVER 20 YEARS' SERVICE FOR PAY PURPOSES. HE WAS RECALLED TO ACTIVE DUTY 8 APRIL 1917 AND WAS ADVANCED TO THE CONFIRMED RATING OF CHIEF WATER TENDER ON 29 AUGUST 1917. ON 22 SEPTEMBER 1919 HE WAS RELEASED FROM ACTIVE DUTY AND ON 19 OCTOBER 1925 HE WAS PLACED ON THE RETIRED LIST, HAVING COMPLETED 30 YEARS' SERVICE. HIS AVERAGE MARK WAS OVER 95 PERCENT. ROYDEN R. DANFORD'S RETIRED PAY HAS BEEN COMPUTED AS FOLLOWS: ONE-HALF BASE PAY ---- -------------------------------- $63.00 PERMANENT ADDITIONS -------------- -------------------- 16.74

TOTAL ------------------------------------------ 79.74 10 PERCENT OF ABOVE--- GOOD CONDUCT ------------------ 7.97

87.71 RETIRED ALLOWANCES ---- ------------------------------ 15.75

TOTAL PAY -------------------------------------- 103.46 LESS HOSPITAL FUND ----------------------------------- .20

NET MONTHLY PAY ------------------------------- 103.26 PERMANENT ADDITIONS: C.S.C ------------------------------------------- -- $ 2.72 G.O. NO. 34 --------------------------------------- 11.00 G.C.M. --------- ------------------------------------ 1.50

TOTAL ------------------------------------------ 15.22 10 PERCENT, ACT OF 1908 ------------------------------ 1.52

TOTAL , PERMANENT ADDITIONS -------------------- 16.74

5. THUS DANFORD, A FLEET RESERVIST ADVANCED IN RATING WHILE ON ACTIVE DUTY DURING THE WORLD WAR, IS RECEIVING LESS PAY THAN OTHER FLEET RESERVISTS OF THE SAME PAY GRADE AND LENGTH OF SERVICE. WITH PARTICULAR REFERENCE TO THE PHRASE APPEARING IN PUBLIC 236 "BE ENTITLED TO RETAINER PAY OR RETIRED PAY COMPUTED ON THE BASIS OF THE INCREASED RATES OF BASE PAY AND LONGEVITY PAY * * *," I WISH TO BE ADVISED WHETHER I AM AUTHORIZED TO PAY HIM ADJUSTED PAY COMPUTED AS FOLLOWS, EFFECTIVE 1 OCTOBER 1940: ONE -HALF BASE PAY -------------------------- ------- $63.00 25 PERCENT LONGEVITY ------------------------------ 31.50

TOTAL ---------------------------------------- 94.50 10 PERCENT FOR GOOD CONDUCT ------------------------ 9.45

TOTAL ---------------------------------------- 103.95 RETIRED ALLOWANCES --------------------------------- 15.75

119.70LESS HOSPITAL FUND --------------------------------- .20

119.50

6. IT IS RECOMMENDED THAT THIS MATTER BE PRESENTED TO THE COMPTROLLER GENERAL FOR HIS CONSIDERATION AND ADVICE ON THE QUESTIONS DISCUSSED.

PUBLIC, NO. 236, SEVENTY-SEVENTH CONGRESS, APPROVED AUGUST 21, 1941, 55 STAT. 656; SECTION 12 OF THE SELECTIVE TRAINING AND SERVICE ACT OF SEPTEMBER 16, 1940, 54 STAT. 895, AND SECTION 10 OF THE ACT OF JUNE 10, 1922, 42 STAT. 630, ARE AS QUOTED IN THE LETTER OF OCTOBER 23, 1941. UNDER SECTION 12 (A) OF THE ACT OF SEPTEMBER 16, 1940, THE MONTHLY BASE RATES OF PAY OF ENLISTED MEN OF THE ARMY AND THE MARINE CORPS OF THE FOURTH, FIFTH, SIXTH, AND SEVENTH (THE LATTER AFTER 4 MONTHS' SERVICE OR UNLESS OTHERWISE RESTRICTED) PAY GRADES WERE INCREASED SO AS TO APPROXIMATE THE BASE PAY PROVIDED FOR ENLISTED MEN OF THE NAVY OF CORRESPONDING GRADES, IT HAVING BEEN REPRESENTED THAT APPRENTICE SEAMEN OF THE NAVY REACH THE SIXTH PAY GRADE AFTER APPROXIMATELY 4 MONTHS' TRAINING. APPLICATION OF THE $21 PER MONTH BASE RATE OF PAY IN THE COMPUTATION OF RETAINER PAY OF TRANSFERRED OR RETIRED RESERVISTS THEREFORE APPEARS TO BE EXCEEDINGLY REMOTE.

THE BASE RATES OF PAY AND THE PERCENTUM INCREASES THEREON FOR LONGEVITY PAY BY REASON OF LENGTH OF SERVICE OF ENLISTED MEN OF THE ARMY AND MARINE CORPS HAVING BEEN PLACED UPON A SUBSTANTIAL PARITY WITH THE PAY OF ENLISTED MEN OF THE NAVY OF CORRESPONDING GRADES, TWO QUESTIONS ARE PRESENTED: (1) WHETHER SUCH PERSONNEL WHO HOLD AN ACTING APPOINTMENT OF CHIEF PETTY OFFICER IN THE NAVY AT THE BASE RATE OF $99 PER MONTH ARE ENTITLED TO HAVE THEIR PAY ADJUSTED ON THE $126 PER MONTH RATE, AND (2) WHETHER TRANSFERRED OR RETIRED RESERVISTS WHOSE RETAINER OR RETIRED PAY, INCLUDING PERMANENT ADDITIONS COMPUTED UNDER LAWS IN EFFECT PRIOR TO JULY 1, 1922, AS DISTINGUISHED FROM LONGEVITY INCREASE PROVIDED FOR THEREAFTER, ARE ENTITLED TO HAVE THEIR PAY ADJUSTED ON THE BASIS OF THE PAY AND LONGEVITY PROVIDED BY SECTION 12 OF THE ACT OF SEPTEMBER 16, 1940, BY REASON OF PUBLIC, NO. 236.

SECTION 10 OF THE ACT OF JUNE 10, 1922, SUPRA, IN ADDITION TO AUTHORIZING THE $126 MONTHLY BASE RATE OF PAY FOR ENLISTED MEN OF THE FIRST GRADE, PROVIDES SPECIFICALLY THAT CHIEF PETTY OFFICERS UNDER ACTING APPOINTMENT SHALL BE INCLUDED IN THE FIRST GRADE AT A MONTHLY BASE PAY OF $99. SECTION 12 OF THE ACT OF SEPTEMBER 16, 1940, WAS ENACTED FOR THE BENEFIT OF ENLISTED MEN OF THE ARMY AND THE MARINE CORPS AND THE LAST SENTENCE OF SECTION 12 (A) LEAVES UNCHANGED THE PAY PROVISIONS MADE FOR ENLISTED MEN OF THE NAVY UNDER SECTION 10 OF THE ACT OF JUNE 10, 1922, UNLESS THE PAY PROVIDED FOR ENLISTED MEN OF SIMILAR GRADES IN THE ARMY AND MARINE CORPS IS GREATER. IN VIEW OF THE SPECIAL PROVISION CONTAINED IN SECTION 10 OF THE ACT OF JUNE 10, 1922, FIXING THE BASE PAY OF CHIEF PETTY OFFICERS OF THE NAVY UNDER ACTING APPOINTMENT AT $99 PER MONTH, SUCH PROVISION IS CONTROLLING AND IS NOT AFFECTED BY THE LAST SENTENCE OF SECTION 12 (A) OF THE ACT OF SEPTEMBER 16, 1940. IN OTHER WORDS, THERE IS NO ENLISTED GRADE IN THE ARMY CORRESPONDING WITH THAT OF AN ACTING CHIEF PETTY OFFICER IN THE NAVY CARRYING WITH IT A BASE RATE OF PAY OF $126 PER MONTH UPON WHICH THE LAST SENTENCE OF SECTION 12 (A) COULD LEGALLY OPERATE. THE FIRST QUESTION IS ANSWERED BY SAYING THAT THE BASE PAY OF A CHIEF PETTY OFFICER UNDER ACTING APPOINTMENT REMAINS $99 PER MONTH AND NECESSARILY, IF TRANSFERRED TO THE FLEET RESERVE OR TO THE RETIRED LIST HIS RETAINER OR RETIRED PAY IS REQUIRED TO BE COMPUTED ON THAT RATE.

IN ADDITION TO THE INCREASES IN THE BASE RATES OF PAY PROVIDED IN SECTION 12 (A) OF THE ACT OF SEPTEMBER 16, 1940, FOR ENLISTED MEN OF THE ARMY AND MARINE CORPS THE SECTION INCREASED THE LONGEVITY PAY OF ALL GRADES FROM 5 TO 10 PERCENTUM UPON COMPLETION OF THE FIRST 4 YEARS OF SERVICE. AS A RESULT, TRANSFERRED AND RETIRED MEMBERS OF THE MARINE CORPS RESERVE WHO WERE TRANSFERRED OR RETIRED PRIOR TO THE EFFECTIVE DATE OF THE SECTION WITH OVER 16 AND LESS THAN 20 YEARS' SERVICE, WERE ENTITLED TO ONLY 20 PERCENTUM INCREASE IN THEIR BASE PAY AND IF OF THE FOUR LOWER GRADES RECEIVED LESSER BASE PAY THAN TRANSFERRED MEMBERS OF THE NAVY OF THE SAME PAY GRADES. AS FIRST INTRODUCED, H.R. 4338, SEVENTY-SEVENTH CONGRESS (WHICH BECAME PUBLIC, NO. 236), WOULD HAVE EXTENDED ONLY TO TRANSFERRED AND RETIRED MEMBERS OF THE FOUR LOWER GRADES. WHEN FINALLY ENACTED THIS LIMITATION WAS REMOVED AT THE REQUEST OF THE NAVY DEPARTMENT IN ORDER THAT MEN OF THE FIRST THREE GRADES WHO TRANSFERRED TO THE ( MARINE) RESERVE AFTER 16 YEARS' SERVICE MAY BE ENTITLED TO AN INCREASE IN THEIR LONGEVITY PAY.

UNDER THE ACT OF MAY 31, 1924, 43 STAT. 251, MEMBERS OF THE FLEET NAVAL RESERVE FORCE WHO WERE TRANSFERRED MEMBERS THEREOF ON JUNE 30, 1922, AND WHO DID NOT COME WITHIN THE SPECIAL PROVISIONS OF THE ACT OF MAY 18, 1920, 41 STAT. 603, WERE ENTITLED ON AND AFTER JULY 1, 1922, TO RETAINER PAY COMPUTED ON THE BASE PAY THEY WERE RECEIVING AT THE CLOSE OF THEIR LAST NAVAL SERVICE "PLUS ALL PERMANENT ADDITIONS THEREOF" AND NOT TO THE LONGEVITY INCREASE AUTHORIZED BY SECTION 10 OF THE ACT OF JUNE 10, 1922. 4 COMP. GEN. 345. THIS APPEARS TO HAVE BEEN THE METHOD OF COMPUTING THE PAY OF THE RESERVIST REFERRED TO IN THE FOURTH PARAGRAPH OF THE QUOTED LETTER OF OCTOBER 23, 1941.

PUBLIC, NO. 236, HAD TWO PURPOSES--- TO ALLOW AN ADDITIONAL PERCENTUM INCREASE FOR LONGEVITY OF TRANSFERRED FLEET MARINE CORPS RESERVISTS WHO HAD COMPLETED MORE THAN 16 AND LESS THAN 20 YEARS' SERVICE, AND TO INCREASE THE PAY OF THE FOUR LOWER GRADES BY AN ADJUSTMENT IN ACCORDANCE WITH THE RATES OF BASE PAY PROVIDED IN SECTION 12 OF THE ACT OF SEPTEMBER 16, 1940. DANFORD, THE RESERVIST REFERRED TO IN THE FOURTH PARAGRAPH OF THE LETTER OF OCTOBER 23, 1941, TRANSFERRED TO THE FLEET NAVAL RESERVE IN THE GRADE OF WATER TENDER AFTER 20 YEARS' SERVICE ON FEBRUARY 14, 1917; WAS RECALLED TO ACTIVE DUTY APRIL 8, 1917, ADVANCED TO THE RATING OF CHIEF WATER TENDER, PERMANENT APPOINTMENT; RELEASED FROM ACTIVE DUTY SEPTEMBER 22, 1919, AND PLACED ON THE RETIRED LIST OF THE U.S. NAVY OCTOBER 19, 1925. HAVING BEEN TRANSFERRED TO THE FLEET NAVAL RESERVE PRIOR TO JUNE 30, 1922, IN THE GRADE OF WATER TENDER HIS RETAINER AND RETIRED PAY HAS BEEN COMPUTED AT THE RATE OF PAY HE WAS RECEIVING ON JUNE 30, 1922, UNDER THE LAWS AND DECISIONS OF THE COMPTROLLER OF THE TREASURY IN FORCE ON THAT DATE; NAMELY, AS CHIEF WATER TENDER, THE PAY OF THAT RATING BEING GREATER THAN HE WAS ENTITLED TO RECEIVE AS A WATER TENDER UNDER SECTION 10 OF THE ACT OF JUNE 10, 1922, AS AMENDED BY THE ACT OF MAY 31, 1924, 43 STAT. 251.

SINCE COMPUTATION OF THIS RESERVIST'S RETIRED PAY ON THE RATING OF CHIEF WATER TENDER WAS IN THE NATURE OF A "SAVED" PAY AND IS GREATER THAN WHEN SUCH PAY IS COMPUTED ON THE RATING OF WATER TENDER UNDER THE ACT OF AUGUST 29, 1916, 39 STAT. 591, INCLUDING LONGEVITY INCREASES THEREON, PLUS 10 PERCENTUM FOR GOOD CONDUCT MARKS, IT IS OBVIOUS THAT NO ADDITIONAL BENEFITS WOULD ACCRUE TO HIM UNDER PUBLIC, NO. 236, OF AUGUST 21, 1941, INASMUCH AS THE LANGUAGE OF THE LAST MENTIONED ACT AND ITS PURPOSE AS DERIVED FROM THE HEARINGS AND REPORTED THEREON DISCLOSE NO INTENT WHATEVER THAT COMPUTATION OF THE "RATES" OF THE RETAINER OR RETIRED PAY THEREUNDER SHOULD BE UPON A RATING OTHER THAN THAT UPON WHICH THE ENLISTED MAN WAS ENTITLED UPON TRANSFER TO THE RESERVE. ACCORDINGLY, YOU WOULD NOT BE AUTHORIZED TO ADJUST THE RESERVIST'S PAY UNDER THE TERMS OF THAT ACT.