A-42691, A-43276, SEPTEMBER 2, 1932, 12 COMP. GEN. 320

A-42691, A-43276, SEPTEMBER 2, 1932, 12 COMP. GEN. 320

ECONOMY ACT - PERCENTAGE REDUCTIONS - REGISTERS OF LAND OFFICES THE COMPENSATION OF REGISTERS OF DISTRICT LAND OFFICES, CONSISTING PARTLY OF SALARY AND PARTLY OF FEES AND COMMISSIONS, IS SUBJECT TO AN 8 1/3 PERCENT REDUCTION UNDER THE ECONOMY ACT.

COMPTROLLER GENERAL MCCARL TO GUY F. BARNES, REGISTER, SEPTEMBER 2, 1932:

THERE WAS RECEIVED AUGUST 4, 1932, YOUR LETTER WITHOUT DATE, AS FOLLOWS:

REFERENCE IS MADE TO YOUR OFFICE INSTRUCTIONS DATED JULY 12, 1932, RELATIVE TO FURLOUGH AND COMPENSATION DEDUCTIONS, IMPOUNDING OF SAME AND OF VACANCY SAVINGS, AND PARTICULARLY TO PARAGRAPH 3 (C) AND PARAGRAPH 7 THEREOF.

INTERIOR DEPARTMENT VOUCHER FORM 4-665 G IS USED FOR VOUCHER IN PAYMENT OF THE REGISTER'S COMPENSATION. THERE IS SUBMITTED HEREWITH COPY OF VOUCHER NO. 3 COVERING JULY 30, 1932, PAYMENT AND IF SAME IS NOT IN PROPER FORM WILL YOUR OFFICE SUBMIT NECESSARY CORRECTIONS.

THERE IS ALSO ENCLOSED COPY OF VOUCHER NO. 25 (SAMPLE) COVERING DECEMBER, 1931, PAYMENT TO THE REGISTER. IT WILL BE NOTED THEREFROM THAT OF THE $300.00 PAID, $284.97 WAS CHARGED TO APPROPRIATION: SALARIES AND COMMISSIONS OF REGISTERS, 1932, $13.18 AGAINST 2 PERCENT COMMISSIONS CHEYENNE RIVER INDIAN LANDS, ACT MAY 29, 1908, AND $1.85 TO STANDING ROCK LANDS, ACT OF MAY 29, 1908.

THERE HAPPENS TO BE NO COMMISSIONS FROM SALES OF INDIAN LANDS IN THE JULY, 1932, VOUCHER NO. 3, BUT FOR FUTURE GUIDANCE IN MAKING DEDUCTIONS UNDER THE ACT OF JUNE 30, 1932 (PUBLIC, 212) WILL YOUR OFFICE PLEASE ADVISE ME WHETHER THE COMMISSIONS FROM INDIAN MONEYS IS SUBJECT TO THE 8 1/3 PERCENT DEDUCTIONS.

THE COMPENSATION TO REGISTERS OF LAND OFFICES IS $1,000.00 PER ANNUM, TOGETHER WITH FEES AND COMMISSIONS. HIS MAXIMUM SALARY IS $3,600 PER ANNUM, PROVIDED THE BUSINESS OF THE OFFICE EARNS THAT AMOUNT.

IN THIS OFFICE THE BUSINESS HAS DIMINISHED SO THAT (AS SHOWN BY COPY OF VOUCHER NO. 3) THE GROSS AMOUNT EARNED FOR THE SECOND HALF OF JULY, 1932, WAS ONLY $92.43. DEDUCTION WAS MADE OF 8 1/3 PERCENT, BUT IT IS NOT CLEAR THAT THIS CLASS OF OFFICER IS SUBJECT TO THE ACT OF JUNE 30, 1932, WHERE HIS COMPENSATION IS MADE UP FROM FEES AND COMMISSIONS IN PART.

IN REFERENCE TO PAR. 7 OF YOUR INSTRUCTIONS, PLEASE ADVISE WHETHER THIS IS APPLICABLE TO MY ACCOUNT.

TITLE I OF THE ECONOMY ACT PROVIDES THREE METHODS FOR DEDUCTING AND IMPOUNDING A PERCENTAGE OF ,COMPENSATION" RECEIVED BY "OFFICERS" AND "EMPLOYEES" OF THE FEDERAL GOVERNMENT DURING THE FISCAL YEAR 1933, VIZ., 5 -DAY WEEK, LEGISLATIVE FURLOUGH, AND PERCENTAGE REDUCTION IN COMPENSATION.

SECTION 104 OF TITLE I PROVIDES IN PART AS FOLLOWS:

WHEN USED IN THIS TITLE---

(A) THE TERMS "OFFICER" AND "EMPLOYEE" MEAN ANY PERSON RENDERING SERVICES IN OR UNDER ANY BRANCH OR SERVICE OF THE UNITED STATES GOVERNMENT OR THE GOVERNMENT OF THE DISTRICT OF COLUMBIA, BUT DO NOT INCLUDE * * * (7) PUBLIC OFFICIALS AND EMPLOYEES WHOSE COMPENSATION * * * IS NOT PAID FROM THE FEDERAL TREASURY; * * *

(B)THE TERM "COMPENSATION" MEANS ANY SALARY, PAY, WAGE, ALLOWANCE (EXCEPT ALLOWANCES FOR SUBSISTENCE, QUARTERS, HEAT, LIGHT, AND TRAVEL), OR OTHER EMOLUMENT PAID FOR SERVICES RENDERED IN ANY CIVILIAN OR NONCIVILIAN OFFICE, POSITION, OR EMPLOYMENT; * * *

THE ACT OF MAY 21, 1928, 45 STAT. 684, PROVIDES:

THAT FROM AND AFTER THE BEGINNING OF THE NEXT FISCAL YEAR THE COMPENSATION OF REGISTERS OF LOCAL LAND OFFICES SHALL BE A SALARY OF $1,000 PER ANNUM EACH AND ALL FEES AND COMMISSIONS NOW ALLOWED BY LAW TO SUCH REGISTERS, BUT THE SALARY, FEES, AND COMMISSIONS OF SUCH REGISTERS SHALL NOT EXCEED $3,600 EACH PER ANNUM: PROVIDED, THAT THE SALARY OF THE REGISTER OF THE JUNEAU LAND DISTRICT, ALASKA, SHALL BE $3,600 PER ANNUM.

SEE, ALSO, SECTIONS 2234-2247, REVISED STATUTES, PARTICULARLY SECTION 2241, WHICH PROVIDES:

WHENEVER THE AMOUNT OF COMPENSATION RECEIVED AT ANY LAND OFFICE EXCEEDS THE MAXIMUM ALLOWED BY LAW TO ANY REGISTER OR RECEIVER, THE EXCESS SHALL BE PAID INTO THE TREASURY, AS OTHER PUBLIC MONEYS.

IN THE ANNUAL APPROPRIATION ACT FOR THE DEPARTMENT OF THE INTERIOR, FISCAL YEAR 1933, DATED APRIL 22, 1932 (47 STAT. 93), APPEARS THE FOLLOWING ITEM:

REGISTERS: FOR SALARIES AND COMMISSIONS OF REGISTERS OF THE DISTRICT LAND OFFICE, $80,000.

REGISTERS OF DISTRICT LAND OFFICES ARE PERSONS RENDERING SERVICE "IN OR UNDER" A "BRANCH OR SERVICE OF THE UNITED STATES GOVERNMENT" WITHIN THE MEANING OF THE DEFINITION OF "OFFICER" AND ,EMPLOYEE" APPEARING IN SECTION 104 OF THE ACT. THEY COLLECT THE FEES AND COMMISSIONS WHEN THEY PERFORM THE SERVICE AND RENDERED AND ACCOUNT AFTER DEDUCTING AND WITHHOLDING THE AMOUNT THEREOF TO WHICH THEY ARE ENTITLED BY LAW, AND WHICH HAS BEEN APPROPRIATED, AS A PART OF THEIR MPENSATION," THE BALANCE, IF ANY, GOING INTO THE FEDERAL TREASURY. UNDER THIS STATUTORY PROCEDURE IT MUST BE HELD THAT THE COMPENSATION, INCLUDING COMMISSIONS AS WELL AS SALARY OF REGISTERS OF DISTRICT LAND OFFICES, IS "PAID FROM THE FEDERAL TREASURY" WITHIN THE MEANING OF SECTION 104 (7) OF THE ECONOMY ACT. THIS PRINCIPLE IS APPLICABLE ALSO TO THE COMMISSIONS PAID THE REGISTERS FROM INDIAN FUNDS FOR SALE OF LANDS.

ASSUMING THAT APPLICATION OF THE 5-DAY WEEK UNDER SECTION 101 (A) OR THE LEGISLATIVE FURLOUGH UNDER SECTION 101 (B) OF THE ECONOMY ACT IS NOT PRACTICABLE, UNDER THE PROVISIONS OF SECTION 105 (D) (6) OF THE ECONOMY ACT, YOUR AGGREGATE COMPENSATION (SALARY PLUS AMOUNT OF FEES AND COMMISSIONS) MUST BE REDUCED BY 8 1/3 PERCENT UNLESS SUCH REDUCTION WILL REDUCE THE AGGREGATE TO $1,000 OR BELOW, IN WHICH EVENT THE AGGREGATE WILL BE REDUCED ONLY TO $1,000 PER ANNUM.

THE STATEMENT OF YOUR ACCOUNT ON THE SAMPLE VOUCHER SUBMITTED APPEARS TO BE IN PROPER FORM.

PARAGRAPH 7 OF OFFICE CIRCULAR OF JULY 12, 1932, ESTABLISHES A RESERVE ACCOUNT ORDINARILY TO BE KEPT IN ADMINISTRATIVE OFFICES AT WASHINGTON AND, SO FAR AS KNOWN, NEED NOT BE SET UP IN YOUR OFFICE.