B-5564, AUGUST 23, 1939, 19 COMP. GEN. 257

B-5564: Aug 23, 1939

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AS WAS PREVIOUSLY DECIDED IN 18 COMP. NOTWITHSTANDING THE WORD "TRANSFERRED" IS NOT USED AS TO THE PERSONNEL OF THE WORKS PROGRESS ADMINISTRATION AND THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS AS WAS DONE IN THE CASE OF THE OTHER ORGANIZATIONS CONSOLIDATED INTO THE FEDERAL WORKS AGENCY BY REORGANIZATION PLAN NO. 1. IS NOT PROHIBITED BY THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISION OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939. 53 STAT. 56 IF THE CHANGE IN ALLOCATION IS TO A CLASSIFICATION ACT GRADE CORRESPONDING TO THE PRIOR EXECUTIVE ORDER GRADE AND THE SALARY IS NOT CHANGED. 1939: I HAVE YOUR LETTER OF AUGUST 14. AS FOLLOWS: THE AMOUNT MADE AVAILABLE FOR ADMINISTRATIVE EXPENSES OF THE WORK PROJECTS ADMINISTRATION FOR THE CURRENT FISCAL YEAR IS GREATLY DECREASED FROM THAT EXPENDED FOR THE SAME PURPOSE DURING THE PAST YEAR.

B-5564, AUGUST 23, 1939, 19 COMP. GEN. 257

COMPENSATION AND CLASSIFICATION CHANGES - "CONSOLIDATED" REORGANIZATION PLAN PERSONNEL - FEDERAL WORKS AGENCY THE WORDS "CONSOLIDATED" AND "COORDINATED" AS USED IN REORGANIZATION PLAN NO. 1 IN CONNECTION WITH THE FEDERAL WORKS AGENCY AND THE FEDERAL LOAN AGENCY, RESPECTIVELY, MUST BE DISTINGUISHED FOR THE PURPOSES OF THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, THE TERM CONSOLIDATE" MEANING, AMONG OTHER THINGS, TO "MERGE," "COMBINE," AND CONNOTING A "TRANSFER" OF PERSONNEL OF SAID COMPENSATION AND CLASSIFICATION CHANGE PURPOSE, WHILE THE WORD "COORDINATE," MEANING TO HARMONIZE ACTIVITIES, AND IN NOWISE DENOTING A MERGER OR FUSING OF ACTIVITIES, DOES NOT CONNOTE A "TRANSFER" OF PERSONNEL FOR SAID PURPOSE, AS WAS PREVIOUSLY DECIDED IN 18 COMP. GEN. 976. NOTWITHSTANDING THE WORD "TRANSFERRED" IS NOT USED AS TO THE PERSONNEL OF THE WORKS PROGRESS ADMINISTRATION AND THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS AS WAS DONE IN THE CASE OF THE OTHER ORGANIZATIONS CONSOLIDATED INTO THE FEDERAL WORKS AGENCY BY REORGANIZATION PLAN NO. 1, VARIOUS PROVISIONS AND THE MESSAGE OF THE PRESIDENT TO THE CONGRESS IN CONNECTION WITH THE SAID PLAN, AND THE "CONSOLIDATION" OF THE SAID AGENCIES INTO THE FEDERAL WORKS AGENCY WITH ITS CHANGE OF THEIR NAMES TO WORK PROJECTS ADMINISTRATION AND PUBLIC WORKS ADMINISTRATION, CLEARLY INDICATES A TRANSFER OF PERSONNEL FOR PURPOSES OF THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563. ADJUSTMENT IN THE CLASSIFICATION OF A POSITION IN THE CENTRAL OFFICE OF THE WORK PROJECTS ADMINISTRATION OF THE FEDERAL WORKS AGENCY, DURING THE FISCAL YEAR 1940, FROM AN EXECUTIVE ORDER GRADE TO A CLASSIFICATION ACT GRADE, IS NOT PROHIBITED BY THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISION OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 56 IF THE CHANGE IN ALLOCATION IS TO A CLASSIFICATION ACT GRADE CORRESPONDING TO THE PRIOR EXECUTIVE ORDER GRADE AND THE SALARY IS NOT CHANGED. A REDUCTION IN APPROPRIATIONS FOR THE WORK PROJECTS ADMINISTRATION OF THE FEDERAL WORKS AGENCY, AND THE ADMINISTRATIVELY ALLEGED RESULTING NEED FOR POSITION AND SALARY ADJUSTMENTS, DO NOT AUTHORIZE NONCOMPLIANCE WITH THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563. VACANCIES OCCURRING IN POSITIONS OF THE WORK PROJECTS ADMINISTRATION OF THE FEDERAL WORKS AGENCY MAY BE FILLED, DURING THE FISCAL YEAR 1940, BY ASSIGNMENT OF EMPLOYEES FROM ONE POSITION TO ANOTHER, BUT THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, REQUIRE THAT ANY CHANGE IN CLASSIFICATION OR COMPENSATION BE NOT EFFECTIVE UNTIL JULY 1, 1940. ADJUSTMENTS IN THE CLASSIFICATION OF FIELD POSITIONS OF THE WORK PROJECTS ADMINISTRATION OF THE FEDERAL WORKS AGENCY MAY BE MADE DURING THE FISCAL YEAR 1940, BUT THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, REQUIRE THAT THERE BE NO CHANGE IN SALARY OR CLASSIFICATION BECAUSE OF THE SAID ADJUSTMENT DURING THE SAID FISCAL YEAR.

COMPTROLLER GENERAL BROWN TO THE FEDERAL WORKS ADMINISTRATOR, AUGUST 23, 1939:

I HAVE YOUR LETTER OF AUGUST 14, 1939, AS FOLLOWS:

THE AMOUNT MADE AVAILABLE FOR ADMINISTRATIVE EXPENSES OF THE WORK PROJECTS ADMINISTRATION FOR THE CURRENT FISCAL YEAR IS GREATLY DECREASED FROM THAT EXPENDED FOR THE SAME PURPOSE DURING THE PAST YEAR. THIS DECREASE HAS MADE IT NECESSARY TO EFFECT DRASTIC REDUCTIONS IN ADMINISTRATIVE COSTS. IT IS DESIRED IN MANY CASES, WHERE FUNCTIONS ARE BEING CONSOLIDATED OR ABOLISHED, TO EFFECT REDUCTIONS IN THE SALARIES OF ADMINISTRATIVE EMPLOYEES. IN SOME CASES IT IS ALSO DESIRED, WHERE VACANCIES EXIST, TO PROMOTE PRESENT EMPLOYEES TO THESE VACANCIES AND TO PAY THEM THE ESTABLISHED SALARY FOR THE POSITION.

THE WORK PROJECTS ADMINISTRATION IS ALSO IN THE PROCESS OF DEVELOPING A CLASSIFICATION PLAN FOR ALL ADMINISTRATIVE POSITIONS WHICH, IF APPLIED, WILL RESULT IN A MORE RATIONAL RELATIONSHIP BETWEEN THE SALARIES OF ITS VARIOUS EMPLOYEES BASED ON THEIR RELATIVE RESPONSIBILITIES AND DUTIES.

THE QUESTION HAS RISEN AS TO WHETHER SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939 (53 STAT. 561) PREVENTS THE WORK PROJECTS ADMINISTRATION FROM CHANGING SALARIES OF ITS ADMINISTRATIVE EMPLOYEES.

SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939 (53 STAT. 561) PROVIDES:

"ANY TRANSFER OF PERSONNEL UNDER THIS TITLE SHALL BE WITHOUT CHANGE IN CLASSIFICATION OR COMPENSATION, EXCEPT THAT THIS REQUIREMENT SHALL NOT OPERATE AFTER THE END OF THE FISCAL YEAR DURING WHICH THE TRANSFER IS MADE TO PREVENT THE ADJUSTMENT OF CLASSIFICATION OR COMPENSATION TO CONFORM TO THE DUTIES TO WHICH SUCH TRANSFERRED PERSONNEL MAY BE ASSIGNED.'

SECTION 4 OF THE ACT PROVIDES THAT THE PRESIDENT OF THE UNITED STATES SHALL PREPARE A REORGANIZATION PLAN FOR THE MAKING OF SUCH TRANSFERS, CONSOLIDATIONS, AND ABOLITIONS AS TO WHICH HE HAS MADE FINDINGS, WHICH PLAN SHALL INCLUDE A PROVISION FOR THE TRANSFER "OR OTHER DISPOSITION" OF THE PERSONNEL AFFECTED BY SUCH TRANSFER, CONSOLIDATION, OR ABOLITION.

SECTION 7 OF THE ACT PROVIDES THAT ANY TRANSFER, CONSOLIDATION, ABOLITION, DESIGNATION, DISPOSITION, OR WINDING UP OF AFFAIRS, REFERRED TO IN SECTION 4 (D) SHALL BE DEEMED A REORGANIZATION.

BY REFERENCE TO THESE TWO, AS WELL AS OTHER SECTIONS OF THE REORGANIZATION ACT, IT MUST BE ASSUMED THAT CONGRESS DEFINITELY HAD IN MIND A DISTINCTION BETWEEN "TRANSFER" AND "CONSOLIDATION," AS WELL AS "DISPOSITION," AND "DESIGNATION OF JUNE 24, 1939 (B-4464), TO THE ADMINISTRATOR OF THE FEDERAL HOUSING ADMINISTRATION, WHEREIN YOU STATED THAT THAT ADMINISTRATION AND OTHER AGENCIES INVOLVED IN SECTION 402 OF THE PRESIDENT'S REORGANIZATION PLAN NO. 1 "ARE MERELY GROUPED AND PLACED UNDER THE SUPERVISION OF THE FEDERAL LOAN ADMINISTRATOR" AND THAT, ACCORDINGLY "SECTION 10 (B) OF THE REORGANIZATION ACT, SUPRA, WHICH RELATES SPECIFICALLY TO "ANY TRANSFER OF PERSONNEL" HAS NO APPLICATION TO THE PERSONNEL OF THE FEDERAL HOUSING ADMINISTRATION, AND, THEREFORE, THAT SAID SECTION WILL NOT PRECLUDE CHANGES IN SALARY RATES OF EMPLOYEES OF THE FEDERAL HOUSING ADMINISTRATION DURING THE FISCAL YEAR 1940.'

SECTION 301. REORGANIZATION PLAN NO. 1, PROVIDES FOR THE TRANSFER OF THE FUNCTIONS AND PERSONNEL OF THE BUREAU OF PUBLIC ROADS OF THE DEPARTMENT OF AGRICULTURE; PUBLIC BUILDINGS BRANCH OF THE PROCUREMENT DIVISION OF THE TREASURY DEPARTMENT; THE UNITED STATES HOUSING AUTHORITY IN THE DEPARTMENT OF INTERIOR; AND CERTAIN FUNCTIONS AND PERSONNEL OF THE NATIONAL PARK SERVICE, TO A NEW AGENCY--- THE FEDERAL WORKS AGENCY. THE PUBLIC WORKS ADMINISTRATION AND THE WORK PROJECTS ADMINISTRATION (EXCEPT THE NATIONAL YOUTH ADMINISTRATION) AND THEIR FUNCTIONS WERE ORDERED CONSOLIDATED INTO THE NEW AGENCY. IT IS TO BE NOTED THAT NO SPECIFIC REFERENCE TO THE TRANSFER OF PERSONNEL OF THE PUBLIC WORKS ADMINISTRATION AND THE WORK PROJECTS ADMINISTRATION IS MADE IN REORGANIZATION PLAN NO. 1. THE "DISPOSITION" OF THE PERSONNEL OF THE PUBLIC WORKS ADMINISTRATION AND OF THE WORK PROJECTS ADMINISTRATION IS CONTAINED IN SECTION 301 (D) OF THE PLAN WHICH PROVIDES: "THE SEVERAL AGENCIES AND FUNCTIONS CONSOLIDATED BY THIS SECTION IN THE FEDERAL WORKS AGENCY SHALL CARRY WITH THEM THEIR PERSONNEL.'

IT SEEMS CLEAR THAT A "TRANSFER" INVOLVES THE TAKING OF FUNCTIONS OR PERSONNEL FROM THE JURISDICTION OF SOME AGENCY AND PLACING THEM IN ANOTHER AGENCY. EMPLOYEES OF THE WORK PROJECTS ADMINISTRATION AND THE PUBLIC WORKS ADMINISTRATION CANNOT THEREFORE HAVE BEEN TRANSFERRED SINCE THEY ARE STILL EMPLOYED IN THE SAME ORGANIZATIONS AS FORMERLY. A SHARP DISTINCTION CAN BE DRAWN BETWEEN THIS SITUATION AND THE CASE OF EMPLOYEES OF CERTAIN OTHER AGENCIES IN THE FEDERAL WORKS AGENCY WHO WERE FORMERLY UNDER THE JURISDICTION OF, AND WERE TRANSFERRED FROM, EXECUTIVE DEPARTMENTS OF THE GOVERNMENT.

AS THE PLAN DOES NOT EFFECT A TRANSFER OF PERSONNEL OF THE WORK PROJECTS ADMINISTRATION TO THE FEDERAL WORKS AGENCY, A TRANSFER FOR WHICH PROVISION HAS BEEN MADE FOR PERSONNEL IN OTHER AGENCIES INVOLVED IN REORGANIZATION, IT IS THE VIEW OF THIS AGENCY THAT SECTION 10 (B), SUPRA, HAVING APPLICATION ONLY TO TRANSFERS OF PERSONNEL UNDER THE REORGANIZATION ACT OF 1939, HAS NO APPLICATION TO THE PUBLIC WORKS ADMINISTRATION AND THE WORK PROJECTS ADMINISTRATION. IN AN ACT PROVIDING FOR THE REORGANIZATION OF THE OPERATIONS OF THE GOVERNMENT TO INCREASE EFFICIENCY, AND TO REDUCE EXPENDITURES, IT IS REASONABLE TO ASSUME THAT CONGRESS DID NOT INTEND TO PREVENT THE TRANSFER OR SALARY CHANGES OF PERSONNEL WITHIN AN ADMINISTRATION IN THE INTERESTS OF EFFICIENCY, UNLESS THE PLAN OF REORGANIZATION SHOULD SPECIFICALLY SO PROVIDE.

THIS VIEW IS REINFORCED BY THE REPORT OF THE SENATE SELECT COMMITTEE ON GOVERNMENT ORGANIZATION IN SUBMITTING THE REORGANIZATION BILL TO THE SENATE WHICH STATED IN CONNECTION WITH SECTION 10 (B) AS FOLLOWS:

"THIS PROVISION WAS INCLUDED IN THE SENATE BILL LAST YEAR AND PROVIDES AGAINST ANY CHANGES IN COMPENSATION AND CLASSIFICATION OF PERSONNEL UNTIL THERE HAS BEEN SUFFICIENT TIME TO ALLOCATE TO THE PROPER GRADES THE DUTIES PERFORMED BY THE TRANSFERRED PERSONNEL.' ( SENATE REPORT NO. 169, 76TH CONG., P. 3.)

FROM THIS PARAGRAPH IT SEEMS CLEAR THAT THE SECTION WAS INSERTED IN THE BILL TO TAKE CARE OF A SITUATION WHERE PERSONNEL FROM DIFFERENT AGENCIES WAS PHYSICALLY CONSOLIDATED AND THE DUTIES CHANGED IN CONNECTION WITH A CONSOLIDATION OF FUNCTIONS WITH THOSE OF OTHER AGENCIES. THE INTERNAL STRUCTURES OF BOTH THE WORK PROJECTS ADMINISTRATION AND THE PUBLIC WORKS ADMINISTRATION HAVE NOT BEEN AFFECTED AS A RESULT OF THE REORGANIZATION ACT.

YOUR DECISION IS THEREFORE RESPECTFULLY REQUESTED AS TO WHETHER SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939 APPLIES TO THE PUBLIC WORKS ADMINISTRATION AND TO THE WORK PROJECTS ADMINISTRATION. IF YOU SHOULD NOT AGREE WITH THE CONTENTION SET FORTH ABOVE AND YOUR ANSWER IS IN THE AFFIRMATIVE, THE FOLLOWING MATTERS ARE SUBMITTED FOR DECISION.

(1) PRIOR TO DECEMBER 29, 1938, ALL ADMINISTRATIVE EMPLOYEES OF THE WORKS PROGRESS ADMINISTRATION HAD BEEN PAID IN ACCORDANCE WITH THE CLASSIFICATION ESTABLISHED IN EXECUTIVE ORDER NO. 6746, DATED JUNE 21, 1934.

ON DECEMBER 29, 1938, THE WORKS PROGRESS ADMINISTRATOR IN A LETTER TO THE CIVIL SERVICE COMMISSION ELECTED TO CLASSIFY THE EMPLOYEES OF THE CENTRAL OFFICE IN WASHINGTON UNDER THE CLASSIFICATION ACT OF 1923, AS AMENDED. THIS ELECTION WAS MADE PURSUANT TO EXECUTIVE ORDER NO. 7092, DATED JULY 3, 1935. THIS ORDER PROVIDES THAT HEADS OF AGENCIES OPERATED FROM EMERGENCY FUNDS, THE COMPENSATION OF THE EMPLOYEES OF WHICH MAY BE FIXED WITHOUT REGARD TO THE CLASSIFICATION ACT OF 1923, AS AMENDED, MAY ELECT TO CLASSIFY THE POSITIONS AND FIX THE RATES OF COMPENSATION THEREFOR EITHER IN ACCORDANCE WITH EXECUTIVE ORDER NO. 6746 OR IN ACCORDANCE WITH THE CLASSIFICATION ACT OF 1923, AS AMENDED. PURSUANT TO THIS ELECTION A RECLASSIFICATION OF PERSONNEL IN THE CENTRAL OFFICE OF THE WORK PROJECTS ADMINISTRATION WAS IN PROCESS PRIOR TO JULY 1, 1939. THIS SURVEY IS BEING COMPLETED AND NECESSARY ADJUSTMENTS OF CLASSIFICATION OF POSITIONS TO CONFORM TO DUTIES PERFORMED BY EMPLOYEES PRIOR TO JULY 1, 1939, HAVE NOT BEEN COMPLETELY EFFECTED.

MAY THE WORK PROJECTS ADMINISTRATION MAKE THE NECESSARY ADJUSTMENTS IN CLASSIFICATION AND COMPENSATION PROVIDED THAT NO CHANGE IN CLASSIFICATION AND COMPENSATION PROVIDED THAT NO CHANGE IN CLASSIFICATION, OR SALARY, BE EFFECTED TO CONFORM TO DUTIES ASSIGNED TO EMPLOYEES AFTER JULY 1, 1939?

(2) AS A RESULT OF A MARKED DECREASE IN APPROPRIATIONS AVAILABLE FOR ADMINISTRATIVE EXPENSES, THE WORK PROJECTS ADMINISTRATION IS COMPELLED TO SHIFT PERSONNEL IN ORDER TO ASSURE THAT THE DUTIES IMPOSED UPON IT BY LAW WILL BE MOST EFFECTIVELY CARRIED OUT. SUCH SHIFTS OF PERSONNEL AND ATTENDANT CHARGES IN DUTIES OF EMPLOYEES WILL HAVE NO RELATION TO THE CONSOLIDATION OF THE WORK PROJECTS ADMINISTRATION INTO THE FEDERAL WORKS AGENCY.

(A) IN THE EVENT THAT DURING SUCH A SHIFT OF PERSONNEL, AN EMPLOYEE IS REQUIRED TO PERFORM ADDITIONAL DUTIES, MAY A RECLASSIFICATION OF THE POSITION BE EFFECTED?

(B) IN THE EVENT THAT DURING SUCH A SHIFT OF PERSONNEL, AN EMPLOYEE IS REQUIRED TO PERFORM DUTIES OF A LESS IMPORTANT NATURE, MAY A RECLASSIFICATION OF THE POSITION BE EFFECTED?

(3) (A) IN THE EVENT THAT VACANCIES OCCUR IN POSITIONS OF THE WORK PROJECTS ADMINISTRATION, AND SUCH VACANCIES ARE FILLED BY PROMOTIONS OF EMPLOYEES WITHIN THE ADMINISTRATION, WILL THE EMPLOYEE BE ENTITLED TO THE SALARY COMMENSURATE WITH THE POSITION TO WHICH HE IS TRANSFERRED? TRANSFERS OF SUCH NATURE WILL BE WITHIN THE WORK PROJECTS ADMINISTRATION, RESULTING FROM THE NECESSARY INTRA-AGENCY OPERATION OF FUNCTIONS IMPOSED UPON IT BY LAW, AND NOT AS A RESULT OF THE CONSOLIDATION OF THE ADMINISTRATION INTO THE FEDERAL WORKS AGENCY. FOR EXAMPLE, IN THE EVENT A STATE DIRECTOR OF FINANCE RESIGNS, AND AN ASSISTANT DIRECTOR OF FINANCE OR OTHER EMPLOYEE IS CHOSEN TO FILL THE VACANCY, MAY THE PERSON SO APPOINTED RECEIVE THE SALARY PREVIOUSLY ESTABLISHED AS COMMENSURATE WITH THE POSITION?

(B) IN THE EVENT THAT VACANCIES OCCUR WHICH ARE FILLED BY PERSONS EMPLOYED WITHIN THE WORK PROJECTS ADMINISTRATION HOLDING POSITIONS OF A HIGHER CLASSIFICATION, MAY A REDUCTION IN THE COMPENSATION OF SUCH PERSONS BE EFFECTED?

(4) THE WORK PROJECTS ADMINISTRATION DESIRES TO UNDERTAKE A RECLASSIFICATION OF ITS ADMINISTRATIVE PERSONNEL EMPLOYED IN THE FIELD. THIS SURVEY IS DEEMED NECESSARY AT THE PRESENT TIME IN ORDER TO ADJUST THE CLASSIFICATION OF EMPLOYEES TO DUTIES PERFORMED BY SUCH EMPLOYEES.

(A) MAY THE ADMINISTRATION MAKE THE NECESSARY ADJUSTMENTS IN CLASSIFICATION AND COMPENSATION PROVIDED THAT NO CHANGE IN CLASSIFICATION, OR SALARY, WILL BE EFFECTED TO CONFORM TO DUTIES ASSIGNED TO EMPLOYEES AFTER JULY 1, 1939?

(B) IN THE EVENT THAT THE SURVEY INDICATES THAT AN EMPLOYEE IS PERFORMING DUTIES ESSENTIALLY DIFFERENT FROM THOSE TO WHICH HE WAS ASSIGNED PRIOR TO JULY 1, 1939, SUCH DIFFERENT DUTIES NOT RESULTING FROM THE CONSOLIDATION OF THE WORK PROJECTS ADMINISTRATION INTO THE FEDERAL WORKS AGENCY, MAY THE ADMINISTRATION MAKE THE NECESSARY ADJUSTMENTS IN CLASSIFICATION AND COMPENSATION TO CONFORM TO DUTIES ASSIGNED TO HIM AT THE TIME THE PROPOSED SURVEY IS MADE?

SECTIONS 301 TO 306, INCLUSIVE, PART 3, OF THE REORGANIZATION PLAN NO. I, PROVIDE AS FOLLOWS:

FEDERAL WORKS AGENCY.--- (A) THE BUREAU OF PUBLIC ROADS IN THE DEPARTMENT OF AGRICULTURE AND ITS FUNCTIONS AND PERSONNEL (INCLUDING THE CHIEF THEREOF) ARE TRANSFERRED FROM THE DEPARTMENT OF AGRICULTURE; THE PUBLIC BUILDINGS BRANCH OF THE PROCUREMENT DIVISION IN THE TREASURY DEPARTMENT; THE BRANCH OF BUILDINGS MANAGEMENT OF THE NATIONAL PARK SERVICE IN THE DEPARTMENT OF THE INTERIOR AND ITS FUNCTIONS AND PERSONNEL (EXCEPT THOSE RELATING TO MONUMENTS AND MEMORIALS), AND THE FUNCTIONS OF THE NATIONAL PARK SERVICE IN THE DISTRICT OF COLUMBIA IN CONNECTION WITH THE GENERAL ASSIGNMENT OF SPACE, THE SELECTION OF SITES FOR PUBLIC BUILDINGS, AND THE DETERMINATION OF THE PRIORITY IN WHICH THE CONSTRUCTION OR ENLARGEMENT OF PUBLIC BUILDINGS SHALL BE UNDERTAKEN, AND THE PERSONNEL ENGAGED EXCLUSIVELY IN THE ADMINISTRATION OF SUCH FUNCTIONS, AND THE UNITED STATES HOUSING AUTHORITY IN THE DEPARTMENT OF THE INTERIOR AND ITS FUNCTIONS AND PERSONNEL (INCLUDING THE ADMINISTRATOR) ARE TRANSFERRED FROM THE DEPARTMENT OF THE INTERIOR; AND ALL OF THESE AGENCIES AND FUNCTIONS, TOGETHER WITH THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS AND ITS FUNCTIONS, AND ALL OF THE WORKS PROGRESS ADMINISTRATION OF PUBLIC WORKS AND ITS FUNCTIONS, AND ALL OF THE WORKS PROGRESS ADMINISTRATION AND ITS FUNCTIONS (EXCEPT THE NATIONAL YOUTH ADMINISTRATION AND ITS FUNCTIONS) ARE HEREBY CONSOLIDATED INTO ONE AGENCY TO BE KNOWN AS THE FEDERAL WORKS AGENCY, WITH A FEDERAL WORKS ADMINISTRATOR AT THE HEAD THEREOF. THE FEDERAL WORKS ADMINISTRATOR SHALL BE APPOINTED BY THE PRESIDENT, BY AND WITH THE ADVICE AND CONSENT OF THE SENATE, AND SHALL RECEIVE A SALARY AT THE RATE OF $12,000 PER ANNUM. HE SHALL HAVE GENERAL DIRECTION AND SUPERVISION OVER THE ADMINISTRATION OF THE SEVERAL AGENCIES CONSOLIDATED INTO THE FEDERAL WORKS AGENCY BY THIS SECTION AND SHALL BE RESPONSIBLE FOR THE COORDINATION OF THEIR FUNCTIONS. (B) THE FEDERAL WORKS ADMINISTRATOR SHALL APPOINT AN ASSISTANT FEDERAL WORKS ADMINISTRATOR, WHO SHALL RECEIVE A SALARY AT THE RATE OF $9,000 PER ANNUM, AND HE MAY ALSO APPOINT SUCH OTHER PERSONNEL AND MAKE SUCH EXPENDITURES AS MAY BE NECESSARY.

(C) THE ASSISTANT ADMINISTRATOR SHALL ACT AS ADMINISTRATOR DURING THE ABSENCE OR DISABILITY OF THE ADMINISTRATOR, OR IN THE EVENT OF A VACANCY IN THAT OFFICE, AND SHALL PERFORM SUCH OTHER DUTIES AS THE ADMINISTRATOR SHALL DIRECT.

(D) THE SEVERAL AGENCIES AND FUNCTIONS CONSOLIDATED BY THIS SECTION IN THE FEDERAL WORKS AGENCY SHALL CARRY WITH THEM THEIR PERSONNEL.

SEC. 302. PUBLIC ROADS ADMINISTRATION.--- (A) THE BUREAU OF PUBLIC ROADS AND ITS FUNCTIONS SHALL BE ADMINISTERED AS THE PUBLIC ROADS ADMINISTRATION AT THE HEAD OF WHICH SHALL BE THE CHIEF OF THE BUREAU OF PUBLIC ROADS WHOSE TITLE SHALL BE CHANGED TO COMMISSIONER OF PUBLIC ROADS. HEREAFTER THE COMMISSIONER OF PUBLIC ROADS SHALL BE APPOINTED BY THE FEDERAL WORKS ADMINISTRATOR.

(B) ALL FUNCTIONS OF THE SECRETARY OF AGRICULTURE RELATING TO THE ADMINISTRATION OF THE BUREAU OF PUBLIC ROADS ARE HEREBY TRANSFERRED TO, AND SHALL BE EXERCISED BY, THE FEDERAL WORKS ADMINISTRATOR.

SEC. 303. PUBLIC BUILDINGS ADMINISTRATION.--- (A) THE PUBLIC BUILDINGS BRANCH OF THE PROCUREMENT DIVISION AND ITS FUNCTIONS. THE BRANCH OF BUILDINGS MANAGEMENT OF THE NATIONAL PARK SERVICE AND ITS FUNCTIONS (EXCEPT THOSE RELATING TO MONUMENTS AND MEMORIALS), AND THE FUNCTIONS OF THE NATIONAL PARK SERVICE IN THE DISTRICT OF COLUMBIA IN CONNECTION WITH THE GENERAL ASSIGNMENT OF SPACE THE SELECTION OF SITES FOR PUBLIC BUILDINGS, AND THE DETERMINATION OF THE PRIORITY IN WHICH THE CONSTRUCTION OR ENLARGEMENT OF PUBLIC BUILDINGS SHALL BE UNDERTAKEN, ARE HEREBY CONSOLIDATED AND SHALL BE ADMINISTERED AS THE PUBLIC BUILDINGS ADMINISTRATION, WITH A COMMISSIONER OF PUBLIC BUILDINGS AT THE HEAD THEREOF. THE COMMISSIONER OF PUBLIC BUILDINGS SHALL BE APPOINTED BY THE FEDERAL WORKS ADMINISTRATOR AND SHALL RECEIVE A SALARY AT THE RATE OF $9,000 PER ANNUM. THE COMMISSIONER OF PUBLIC BUILDINGS SHALL ACT UNDER THE DIRECTION AND SUPERVISION OF THE FEDERAL WORKS ADMINISTRATOR.

(B) ALL FUNCTIONS OF THE SECRETARY OF THE TREASURY AND THE DIRECTOR OF PROCUREMENT RELATING TO THE ADMINISTRATION OF THE PUBLIC BUILDINGS BRANCH OF THE PROCUREMENT DIVISION AND TO THE SELECTION OF LOCATION AND SITES FOR PUBLIC BUILDINGS, AND ALL FUNCTIONS OF THE SECRETARY OF THE INTERIOR AND THE DIRECTOR OF THE NATIONAL PARK SERVICE RELATING TO THE ADMINISTRATION OF THE FUNCTIONS OF THE BRANCH OF BUILDINGS MANAGEMENT AND THE FUNCTIONS OF THE NATIONAL PARK SERVICE IN THE DISTRICT OF COLUMBIA IN CONNECTION WITH THE GENERAL ASSIGNMENT OF SPACE, THE SELECTION OF SITES FOR PUBLIC BUILDINGS, AND THE DETERMINATION OF THE PRIORITY IN WHICH THE CONSTRUCTION OR ENLARGEMENT OF PUBLIC BUILDINGS SHALL BE UNDERTAKEN, ARE HEREBY TRANSFERRED TO, AND SHALL BE EXERCISED BY, THE FEDERAL WORKS ADMINISTRATOR.

SEC. 304. UNITED STATES HOUSING AUTHORITY.--- (A) THE UNITED STATES HOUSING AUTHORITY AND ITS FUNCTIONS SHALL BE ADMINISTERED BY THE UNITED STATES HOUSING ADMINISTRATOR UNDER THE DIRECTION AND SUPERVISION OF THE FEDERAL WORKS ADMINISTRATOR.

(B) ALL FUNCTIONS OF THE SECRETARY OF THE INTERIOR RELATING TO THE ADMINISTRATION OF THE UNITED STATES HOUSING AUTHORITY ARE HEREBY TRANSFERRED TO, AND SHALL BE EXERCISED BY, THE FEDERAL WORKS ADMINISTRATOR.

SEC. 305. PUBLIC WORKS ADMINISTRATION.--- THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS AND ITS FUNCTIONS SHALL BE ADMINISTERED AS THE PUBLIC WORKS ADMINISTRATION WITH A COMMISSIONER OF PUBLIC WORKS AT THE HEAD THEREOF. THE COMMISSIONER OF PUBLIC WORKS SHALL BE APPOINTED BY THE FEDERAL WORKS ADMINISTRATOR AND SHALL RECEIVE A SALARY AT THE RATE OF $10,000 PER ANNUM. THE COMMISSIONER OF PUBLIC WORKS SHALL ACT UNDER THE DIRECTION AND SUPERVISION OF THE FEDERAL WORKS ADMINISTRATOR.

SEC. 306. WORK PROJECTS ADMINISTRATION.--- THE WORKS PROGRESS ADMINISTRATION AND ITS FUNCTIONS (EXCEPT THE NATIONAL YOUTH ADMINISTRATION AND ITS FUNCTIONS) SHALL BE ADMINISTERED AS THE WORK PROJECTS ADMINISTRATION, WITH A COMMISSIONER OF WORK PROJECTS AT THE HEAD THEREOF. THE COMMISSIONER SHALL BE APPOINTED BY THE FEDERAL WORKS ADMINISTRATOR AND SHALL RECEIVE A SALARY AT THE RATE OF $10,000 PER ANNUM. THE COMMISSIONER SHALL ACT UNDER THE DIRECTION AND SUPERVISION OF THE FEDERAL WORKS ADMINISTRATOR.

WHILE IN SECTION 301, SUPRA, THE WORD "TRANSFERRED" IS USED WITH REFERENCE TO ALL OF THE AGENCIES INVOLVED EXCEPT THE TWO WHICH THERETOFORE HAD EXISTED AS INDEPENDENT AGENCIES, THE REASONABLE SIGNIFICANCE TO BE ATTACHED TO THIS IS THAT THE PERSONNEL AND FUNCTIONS OF A SUBORDINATE UNIT OF A DEPARTMENT HAD TO BE "TRANSFERRED FROM" OR OUT OF SUCH DEPARTMENT, WHEREAS THE PERSONNEL AND FUNCTIONS OF AN AGENCY WHICH WAS INDEPENDENT PRIOR TO JULY 1, 1939, WAS NOT REQUIRED TO BE TRANSFERRED FROM OR OUT OF A DEPARTMENT OR ESTABLISHMENT. AFTER PROVIDING WITH RESPECT TO THE VARIOUS SUBORDINATE UNITS THAT THEY SHOULD BE "TRANSFERRED FROM" THEIR RESPECTIVE DEPARTMENTS, IT WAS PROVIDED THAT ALL OF SAID AGENCIES AND THE TWO FORMER INDEPENDENT AGENCIES AND THEIR FUNCTIONS ,ARE HEREBY CONSOLIDATED INTO ONE AGENCY TO BE KNOWN AS THE FEDERAL WORKS AGENCY.' THEN, WITH RESPECT TO THE PERSONNEL OF ALL SUCH AGENCIES, SECTION 301 (D) PROVIDES:

THE SEVERAL AGENCIES AND FUNCTIONS CONSOLIDATED BY THIS SECTION IN THE FEDERAL WORKS AGENCY SHALL CARRY WITH THEM THEIR PERSONNEL.

IN THIS CONNECTION IT MAY BE NOTED THAT THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS AUTHORIZED TO BE CREATED AS AN INDEPENDENT AGENCY BY SECTION 201 OF THE NATIONAL INDUSTRIAL RECOVERY ACT OF JUNE 16, 1933, 48 STAT. 200, AND THE WORKS PROGRESS ADMINISTRATION, ESTABLISHED AS AN INDEPENDENT AGENCY BY EXECUTIVE ORDER NO. 7034 OF MAY 6, 1935, ARE NO LONGER IN EXISTENCE AND, IN LIEU THEREOF, SECTIONS 305 AND 306 OF THE REORGANIZATION PLAN, SUPRA, PROVIDE THAT SUCH AGENCIES AND THEIR FUNCTIONS "SHALL BE ADMINISTERED" AS THE PUBLIC WORKS ADMINISTRATION AND THE WORKS PROJECTS ADMINISTRATION, RESPECTIVELY, WITH A COMMISSIONER AT THE HEAD OF EACH WHO IS TO ACT UNDER THE DIRECTION AND SUPERVISION OF THE HEAD OF THE NEW AGENCY--- THE FEDERAL WORKS ADMINISTRATOR. CONSEQUENTLY, THE TWO NEW SUBORDINATE UNITS PLACED UNDER THE FEDERAL WORKS AGENCY ARE NO LONGER THE SAME INDEPENDENT AGENCIES WHICH EXISTED PRIOR TO THE REORGANIZATION. THEY ARE BUT PARTS OF A NEW AND DIFFERENT AGENCY AND THE RELATIONSHIP BETWEEN EACH OF THEM AND THAT AGENCY OR ITS HEAD IS SUBSTANTIALLY THE SAME AS THE RELATIONSHIP BETWEEN EACH OF THE THREE OTHER PARTS AND THAT AGENCY OR ITS HEAD. EACH IS TO BE ADMINISTERED UNDER ITS DESIGNATED TITLE AND WITH A COMMISSIONER OR AN ADMINISTRATOR AT THE HEAD THEREOF WHO, IN EACH CASE, IS TO ACT UNDER THE DIRECTION AND SUPERVISION OF THE FEDERAL WORKS ADMINISTRATOR.

THE PRESIDENT ISSUED REORGANIZATION PLAN NO. I, UNDER THE REORGANIZATION ACT OF APRIL 3, 1939, AND IT MUST BE PRESUMED THAT THE TERMS OF THE PLAN WERE FORMULATED IN THE LIGHT OF THE VARIOUS PROVISIONS OF THE REORGANIZATION ACT. THAT THE PRESIDENT INTENDED TO TRANSFER THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS AND THE WORKS PROGRESS ADMINISTRATION TO THE FEDERAL WORKS AGENCY IS EVIDENT FROM THE FOLLOWING APPEARING IN HIS MESSAGE TO THE CONGRESS TRANSMITTING THIS PLAN:

THE TRANSFER OF BOTH THE PUBLIC WORKS ADMINISTRATION AND THE WORKS PROGRESS ADMINISTRATION TO THE NEW FEDERAL WORKS AGENCY WOULD PROVIDE FOR BOTH PRINCIPAL TYPES OF PUBLIC WORKS THAT HAVE BEEN CARRIED ON BY THE FEDERAL GOVERNMENT DIRECTLY OR IN COOPERATION WITH THE STATE AND LOCAL GOVERNMENTS. IT FIND THAT IT WILL BE POSSIBLE TO REDUCE ADMINISTRATIVE COSTS AS WELL AS TO IMPROVE EFFICIENCY AND TO ELIMINATE OVERLAPPING BY BRINGING THESE DIFFERENT PROGRAMS OF PUBLIC WORKS UNDER A COMMON HEAD. BUT, BECAUSE OF THE DIFFERENCES THAT JUSTIFIED THEIR SEPARATE OPERATION IN THE PAST AND DIFFERENCES THAT WILL CONTINUE IN THE FUTURE TO DISTINGUISH CERTAIN PHASES OF MAJOR PUBLIC WORKS FROM WORK RELIEF, I FIND IT NECESSARY TO MAINTAIN THEM AT LEAST FOR THE PRESENT AS SEPARATE SUBORDINATE UNITS OF THE FEDERAL WORKS AGENCY.

THERE IS NO INDICATION FROM THE ABOVE STATEMENT THAT THE PRESIDENT INTENDED THAT ANY DISTINCTION SHOULD BE MADE BETWEEN THE "DISPOSITION" OF THE PERSONNEL OF THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS AND OF THE WORKS PROGRESS ADMINISTRATION AND THE "DISPOSITION" OF THE PERSONNEL OF THE VARIOUS AGENCIES WHICH WERE TRANSFERRED OUT OF THE AGRICULTURE, INTERIOR, AND TREASURY DEPARTMENTS AND CONSOLIDATED WITH THOSE AGENCIES TO MAKE UP THE NEW FEDERAL WORKS AGENCY. THE LAW SPECIFICALLY PROVIDES THAT THE SEVERAL AGENCIES CONSOLIDATED "SHALL CARRY WITH THEM THEIR ERSONNEL" AND SUCH CARRYING OF THE PERSONNEL MUST BE REGARDED AS A TRANSFER OF PERSONNEL REGARDLESS OF WHETHER THE PERSONNEL THERETOFORE HAD BEEN IN AN INDEPENDENT AGENCY OR IN AN AGENCY WITHIN A DEPARTMENT.

MUCH EMPHASIS IS PLACED IN THE SUBMISSION UPON THE FACT THAT IN SOME PARTS OF THE REORGANIZATION ACT THE WORD "TRANSFER" IS USED WHILE IN OTHER PARTS THE WORD "CONSOLIDATION" IS USED AND YOU URGE THAT BY REASON OF THE USE OF SUCH SPECIFIC TERMS IN DIFFERENT PARTS OF THE ACT IT MUST BE ASSUMED THE CONGRESS DEFINITELY HAD IN MIND A DISTINCTION BETWEEN "TRANSFER" AND "CONSOLIDATION" AND THAT SUCH DISTINCTION WAS RECOGNIZED IN THE DECISION OF THE OFFICE DATED JUNE 24, 1939, B-4464, 18 COMP. GEN. 976, WITH REFERENCE TO THE FEDERAL HOUSING ADMINISTRATION. THE CITED DECISION HELD AS FOLLOWS, QUOTING FROM THE SYLLABUS:

THE PURPOSE OF SECTION 402 OF THE PRESIDENT'S REORGANIZATION PLAN NO. I, MADE EFFECTIVE JULY 1, 1939, BY ACT OF CONGRESS, BEING TO EFFECT A COORDINATION RATHER THAN A TRANSFER OR CONSOLIDATION OF THE FUNCTIONS AND ACTIVITIES OF THE ESTABLISHMENT, INCLUDING THE FEDERAL HOUSING ADMINISTRATION, IN THE " LENDING AGENCIES" PLACED UNDER THE SUPERVISION OF THE FEDERAL LOAN ADMINISTRATOR, THE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF APRIL 3, 1939, 53 STAT. 563, WHICH RELATE SPECIFICALLY TO " ANY TRANSFER OF PERSONNEL" HAVE NO APPLICATION TO THE PERSONNEL OF THE FEDERAL HOUSING ADMINISTRATION, AND SAID SECTION WILL NOT PRECLUDE CHANGES IN SALARY RATES OF SUCH PERSONNEL DURING THE FISCAL YEAR 1940.

THE FEDERAL HOUSING ADMINISTRATION IS COVERED BY PART 4 OF THE PRESIDENT'S REORGANIZATION PLAN NO. I. UNDER SECTION 402 OF THAT PLAN THERE IS CREATED A NEW AGENCY KNOWN AS THE FEDERAL LOAN AGENCY HEADED BY A NEW OFFICIAL KNOWN AS THE FEDERAL LOAN ADMINISTRATOR. THERE IS PARTICULARLY FOR NOTING IN THAT CONNECTION THE FACT THAT THE ONLY PLACE THE FEDERAL HOUSING ADMINISTRATION IS MENTIONED IN THE PLAN IS IN SECTION 402 (C) THEREOF, IN WHICH ARE DEFINED THE POWERS AND DUTIES OF THE FEDERAL LOAN ADMINISTRATOR AS FOLLOWS:

POWERS AND DUTIES OF ADMINISTRATOR.--- THE ADMINISTRATOR SHALL SUPERVISE THE ADMINISTRATION, AND SHALL BE RESPONSIBLE FOR THE COORDINATION OF THE FUNCTIONS AND ACTIVITIES, OF THE FOLLOWING AGENCIES: * * * FEDERAL HOUSING ADMINISTRATION, * * *

IT WILL BE OBSERVED THAT NOWHERE IN SECTION 402 DO THE TERMS "TRANSFER" OR "CONSOLIDATE" APPEAR AND NO INDICATION CAN BE FOUND IN THE LANGUAGE USED IN PART 4 OF THE PLAN TO INDICATE AN INTENT TO TRANSFER TO THE NEWLY CREATED FEDERAL LOAN AGENCY THE PERSONNEL OF THE FEDERAL HOUSING ADMINISTRATION, OR OF ANY OF THE OTHER AGENCIES SPECIFICALLY NAMED IN SECTION 402 (C). THE CLEAR INFERENCE THAT IT WAS NOT SO INTENDED TO TRANSFER SAID LENDING AGENCIES TO THE NEWLY CREATED FEDERAL LOAN AGENCY IS TO BE DRAWN FROM THE FACT THAT THROUGHOUT PLAN I, AND IN NUMEROUS INSTANCES DEALING WITH OTHER AGENCIES, THE PLAN HAS EXPRESSLY "TRANSFERRED" OR "CONSOLIDATED" THE FUNCTIONS AND PERSONNEL-- NOTICEABLY IN SECTIONS 1, 2, 3, 4, 201, 211, 301, 310, AND 401. INFERENCE IS STRENGTHENED, ALSO BY THE FACT THAT THE PRESIDENT IN HIS MESSAGE TO THE CONGRESS REGARDING PART 4 OF REORGANIZATION PLAN NO. I USED NEITHER THE WORD,"TRANSFER," NOR THE WORD,"CONSOLIDATE," IN RESPECT OF THE NAMED LENDING AGENCIES--- THE PRESIDENT HAVING REFERRED TO SUCH AGENCIES AS "TO BE GROUPED IN THE FEDERAL LOAN AGENCY.'

HOWEVER, WITH REFERENCE TO THE WORKS PROGRESS ADMINISTRATION AND THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS THERE DOES NOT APPEAR SUCH CLEAR INDICATION OR INFERENCE THAT THE PERSONNEL OF SAID ADMINISTRATIONS WAS NOT TRANSFERRED TO THE NEWLY CREATED AGENCY, NAMELY, THE FEDERAL WORKS AGENCY. WHILE THE WORD,"TRANSFERRED," IS NOT USED IN PLAN NO. I IN CONNECTION WITH THE TWO NAMED ADMINISTRATIONS IT WOULD SEEM CLEAR THAT SUBSECTION (D) HEREINBEFORE QUOTED HAS THE EFFECT OF TRANSFERRING THE PERSONNEL OF SAID ADMINISTRATIONS TO THE FEDERAL WORKS AGENCY AND THAT THE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT, 53 STAT. 563, QUOTED IN YOUR LETTER, AS WELL AS THE PROVISIONS OF SECTION 310 OF REORGANIZATION PLAN NO. I, ARE APPLICABLE TO THE PERSONNEL OF SAID ADMINISTRATIONS. THIS LATTER INFERENCE IS STRENGTHENED WHEN VIEWED IN THE LIGHT OF THE FACT THAT WHILE THE PERSONNEL OF THE AGENCIES REFERRED TO IN THE FIRST 17 LINES OF SECTION 301 (A) OF PART 3 OF REORGANIZATION PLAN NO. I, WAS TRANSFERRED FROM THE INVOLVED EXECUTIVE DEPARTMENTS, SUCH PERSONNEL WAS NOT, AS STATED IN PARAGRAPH 8 OF YOUR LETTER, TRANSFERRED, IN EXPRESS TERMS, TO THE NEW AGENCY, THE FEDERAL WORKS AGENCY, THE TRANSFER OF SUCH PERSONNEL TO SAID AGENCY BEING ACCOMPLISHED BY SECTION 301 (D). NOTWITHSTANDING THAT SUCH AFFECTED AGENCIES WERE NOT IN SPECIFIC TERMS TRANSFERRED TO THE NEWLY CREATED AGENCY, NO CONTENTION HAS BEEN ADVANCED--- AND IT APPEARS THAT NONE COULD SERIOUSLY BE ADVANCED--- THAT THE PERSONNEL THEREOF ARE NOT EMBRACED BY THE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT. YET, SAID AGENCIES AND FUNCTIONS TRANSFERRED FROM THE NAMED EXECUTIVE DEPARTMENTS "TOGETHER WITH THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS AND ITS FUNCTIONS, AND ALL OF THE WORKS PROGRESS ADMINISTRATION AND ITS FUNCTIONS EXCEPT THE NATIONAL YOUTH ADMINISTRATION AND ITS FUNCTIONS ARE," UNDER THE PROVISIONS OF SECTION 301 (A),"HEREBY CONSOLIDATED INTO ONE AGENCY TO BE KNOWN AS THE FEDERAL WORKS AGENCY, WITH A FEDERAL WORKS ADMINISTRATOR AT THE HEAD THEREOF.' THE WORD "CONSOLIDATE" MEANS, AMONG OTHER THINGS,"MERGE," "COMBINE," AND SUCH TERMS CONNOTE THE PRESENCE OF THINGS TO BE MERGED OR COMBINED AND THE PRESENCE IN THE INSTANT MATTER IS MANIFESTED THROUGH THE NECESSARY IMPLICATION OF TRANSFER OF THE INVOLVED PERSONNEL. ON THE OTHER HAND, THE WORD,"COORDINATION," USED IN CONNECTION WITH THE LENDING AGENCIES MEANS THE ACT OF HARMONIZING THE ACTIVITIES OF SAID AGENCIES AND IS IN NOWISE CONNOTATIVE OF MERGING OR FUSING OF ACTIVITIES REQUIRING PRESENCE BY ANY IMPLICATION OF TRANSFER OR OTHERWISE.

AS PREVIOUSLY STATED, IN THE PRESIDENT'S MESSAGE REGARDING THE LENDING AGENCIES COVERED BY PART 4 OF REORGANIZATION PLAN NO. I, NEITHER THE WORD "TRANSFER" NOR "CONSOLIDATE" WAS USED, AND THE REQUIREMENT IN RESPECT OF THE NAMED LENDING AGENCIES WAS THAT THEY WERE TO BE "GROUPED" IN THE FEDERAL LOAN AGENCY. THERE IS FOR NOTING, HOWEVER, IN CONTRAST, THE FACT THAT IN THE PRESIDENT'S MESSAGE REGARDING THE FEDERAL WORKS AGENCY COVERED BY PART 3 OF REORGANIZATION PLAN NO. I, THE PRESIDENT STATED," THE TRANSFER OF BOTH THE PUBLIC WORKS ADMINISTRATION AND THE WORKS PROGRESS ADMINISTRATION TO THE NEW FEDERAL WORKS AGENCY," ETC; AND THROUGHOUT THIS PART OF THE MESSAGE THERE IS MANIFESTED THE INTENT TO CONSOLIDATE THE INVOLVED ACTIVITIES AND TO TRANSFER SAME AND THEIR PERSONNEL TO THE NEWLY CREATED AGENCY.

FURTHERMORE, IT WOULD SEEM MOST INCONSISTENT TO HOLD THAT THE PERSONNEL OF THE AGENCIES WHICH WERE TRANSFERRED FROM OR OUT OF THE NAMED EXECUTIVE DEPARTMENTS BY SECTION 301 (A) OF REORGANIZATION PLAN NO. I IS SUBJECT TO THE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT AND, AT THE SAME TIME, TO HOLD THAT THE PERSONNEL OF THE FORMER WORKS PROGRESS ADMINISTRATION AND THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS IS NOT SUBJECT THERETO WHEN BY THE VERY PROVISIONS OF SECTION 301 (A) OF REORGANIZATION PLAN NO. I ALL THESE AGENCIES AND THEIR FUNCTIONS ARE CONSOLIDATED INTO ONE AGENCY, TO WIT, THE FEDERAL WORKS AGENCY. OBVIOUSLY, NO SUCH INCONGRUITY AMONG EMPLOYEES OF THE SAME AGENCY IS CONTEMPLATED OR REQUIRED BY THE REORGANIZATION ACT OR THE REORGANIZATION PLAN NO. I.

SINCE THE FORMER WORKS PROGRESS ADMINISTRATION AND FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS AND THEIR FUNCTIONS, TOGETHER WITH THE AGENCIES (AND THEIR FUNCTIONS) TRANSFERRED FROM THE INVOLVED EXECUTIVE DEPARTMENTS ARE, BY VIRTUE OF SECTION 301 (A) OF REORGANIZATION PLAN NO. "CONSOLIDATED INTO ONE AGENCY TO BE KNOWN AS THE FEDERAL WORKS AGENCY," AND SINCE, ALSO, SECTION 301 (D) OF THE CITED PLAN PROVIDES THAT THE SEVERAL AGENCIES AND FUNCTIONS CONSOLIDATED BY THIS SECTION "SHALL CARRY WITH THEM THEIR PERSONNEL"--- LANGUAGE DECIDEDLY DIFFERENT FROM THAT RELATING TO THE LENDING AGENCIES--- THE CONCLUSION APPEARS INESCAPABLE THAT THE "CONSOLIDATION" PROVIDED FOR BY SECTION 301 REORGANIZATION PLAN NO. I REQUIRES THE NECESSARY IMPLICATION OF THE TRANSFER OF THE PERSONNEL INVOLVED IN THE CONSOLIDATION OF THE NAMED AGENCIES AND THEIR FUNCTIONS TO THE NEWLY CREATED AGENCY, THE FEDERAL WORKS AGENCY. ACCORDINGLY, ALL OFFICERS AND EMPLOYEES WHO WERE IN THE SERVICE ON JUNE 30, 1939, IN ANY OF THE AGENCIES THE FUNCTIONS OF WHICH WERE CONSOLIDATED UNDER THE FEDERAL WORKS AGENCY MUST BE REGARDED AS HAVING BEEN TRANSFERRED UNDER THE REORGANIZATION ACT OF 1939 WITHIN THE PURVIEW OF SECTION 10 (B) OF SAID ACT, 53 STAT. 563, WHICH PROHIBITS FOR 1 YEAR, OR UNTIL JULY 1, 1940, ANY CHANGE IN CLASSIFICATION OR COMPENSATION OF PERSONNEL SO TRANSFERRED.

IN THE LIGHT OF THE FOREGOING, YOUR SPECIFIC QUESTIONS ARE ANSWERED IN THE ORDER STATED IN YOUR LETTER AS FOLLOWS:

(1) EXECUTIVE ORDER NO. 6746, DATED JUNE 21, 1934, REQUIRES THE CLASSIFICATION OF EMERGENCY POSITIONS BY ADMINISTRATIVE ACTION ON SUBSTANTIALLY THE SAME BASIS AS PRESCRIBED BY THE CLASSIFICATION ACT, AS AMENDED, AND AS REQUIRED BY THE ADMINISTRATIVE OFFICES WITH RESPECT TO THE FIELD SERVICE, AND THE SCHEDULE IN THE EXECUTIVE ORDER PRESCRIBES MAXIMUM SALARY RATES CORRESPONDING MOSTLY WITH THE MINIMUM SALARY RATES OF CORRESPONDING CLASSIFICATION ACT GRADES WHICH APPEAR OPPOSITE THE SALARY RATES IN THE EXECUTIVE ORDER SCHEDULE. THIS PRINCIPLE HAS BEEN RECOGNIZED IN AUTHORIZING ADJUSTMENTS IN SALARY RATES OF EMPLOYEES TRANSFERRED OR REAPPOINTED FROM EMERGENCY POSITIONS CLASSIFIED UNDER THE EXECUTIVE ORDER TO REGULAR POSITIONS CLASSIFIED UNDER THE CLASSIFICATION ACT OF 1923, AS AMENDED. 15 COMP. GEN. 102; ID. 797. SECTION 10 (B) OF THE REORGANIZATION ACT IS A PROHIBITION ONLY AGAINST A CHANGE IN CLASSIFICATION OR COMPENSATION DURING THE FISCAL YEAR 1940 OF AN EMPLOYEE TRANSFERRED UNDER THE PROVISIONS OF TITLE I OF THE ACT. THEREFORE, IF THE ADJUSTMENT IN THE CLASSIFICATION OF A POSITION FROM THE EXECUTIVE ORDER GRADE TO A CLASSIFICATION ACT GRADE RESULTS IN THE ALLOCATION OF THE POSITION IN THE CLASSIFICATION ACT GRADE CORRESPONDING TO THE EXECUTIVE ORDER GRADE IN WHICH THE POSITION HAD PREVIOUSLY BEEN ALLOCATED AND THE SALARY IS NOT CHANGED, THIS QUESTION MAY BE ANSWERED IN THE AFFIRMATIVE.

(2) THE FACT THAT THERE HAS BEEN A REDUCTION IN APPROPRIATIONS PROVIDED FOR THE WORK PROJECTS ADMINISTRATION HAS NO BEARING UPON THE PROPER APPLICATION OF SECTION 10 (B) OF THE REORGANIZATION ACT.

THE CLASSIFICATION OR COMPENSATION OF AN EMPLOYEE TRANSFERRED UNDER THE PROVISIONS OF TITLE I OF THE ACT MAY NOT BE CHANGED DURING THE FISCAL YEAR 1940. BOTH QUESTIONS (A) AND (B) ARE ANSWERED IN THE NEGATIVE.

(3) CHANGES IN ASSIGNMENT OF EMPLOYEES FROM ONE POSITION TO ANOTHER MAY BE MADE DURING THE FISCAL YEAR 1940, BUT ANY CHANGE IN CLASSIFICATION OR COMPENSATION WILL NOT BECOME EFFECTIVE UNTIL JULY 1, 1940. ACCORDINGLY, FOR THE FISCAL YEAR 1940 BOTH QUESTIONS (A) AND (B) ARE ANSWERED IN THE NEGATIVE.

(4) QUESTION (A) IS ANSWERED IN THE AFFIRMATIVE. SEE ANSWER TO QUESTION 1, ABOVE. QUESTION (B) IS ANSWERED IN THE NEGATIVE. SEE ANSWER TO QUESTION (3), ABOVE.