A-43534, AUGUST 16, 1932, 12 COMP. GEN. 245

A-43534, AUGUST 16, 1932, 12 COMP. GEN. 245

ECONOMY ACT - FOURTH-CLASS POSTMASTERS - CLERK HIRE THE COMPENSATION OF A POSTMASTER, WHO, PRIOR TO JULY 1, 1932, WAS OF THE FOURTH CLASS, WILL CONTINUE DURING THE FISCAL YEAR 1933 TO BE COMPUTED AS IN THE FOURTH CLASS, ALTHOUGH FOR OTHER PURPOSES, INCLUDING THE PAYMENT OF AN ADDITIONAL ALLOWANCE FOR CLERK HIRE, THE POST OFFICE HAS BEEN ADVANCED TO THE THIRD CLASS. IF THE COMPENSATION OF A CLERK AT A THIRD-CLASS POST OFFICE, PAID FROM THE CLERK-HIRE ALLOWANCE AUTHORIZED BY STATUTE, IS AT A RATE IN EXCESS OF $1,000 PER ANNUM, 8 1/3 PERCENT THEREOF SHOULD BE DEDUCTED AND IMPOUNDED UNDER THE PROVISIONS OF SECTION 105 (D) (5) OF THE ECONOMY ACT.

COMPTROLLER GENERAL MCCARL TO THE POSTMASTER GENERAL, AUGUST 16, 1932:

THERE HAS BEEN RECEIVED IN THIS OFFICE YOUR ADDITIONAL CERTIFICATE REDUCING THE SALARIES OF POSTMASTERS WHICH WERE INCREASED BY YOUR FORMER ORDER TO THEIR SALARIES AS OF JUNE 30, 1932, PURSUANT TO DECISION OF THIS OFFICE DATED JULY 30, 1932, A-43534, 12 COMP. GEN. 146, HOLDING IN PART (QUOTING FROM THE SYLLABUS) AS FOLLOWS:

INCREASES IN COMPENSATION OF POSTMASTERS, ASSISTANT POSTMASTERS, SUPERVISORY OFFICIALS, INCLUDING SUPERINTENDENTS AND ASSISTANT SUPERINTENDENTS OF CLASSIFIED STATIONS, BASED ON THE INCREASE OF GROSS RECEIPTS OF POST OFFICES FOR THE PRECEDING CALENDAR YEAR OR ON AN INCREASE IN THE NUMBER OF EMPLOYEES ASSIGNED TO CLASSIFIED STATIONS, CONSTITUTE AUTOMATIC PROMOTIONS WITHIN THE MEANING OF SECTION 201 OF THE ECONOMY ACT AND ARE PROHIBITED FROM BECOMING EFFECTIVE DURING THE FISCAL YEAR 1933.

THE BODY OF THE DECISION ADVISED AS FOLLOWS:

YOU ARE ADVISED, THEREFORE, THAT IN THE SETTLEMENT OF ACCOUNTS COVERING PERIODS DURING THE FISCAL YEAR 1933, CREDIT WILL NOT BE GIVEN FOR ANY SALARY PAYMENTS OF THE ABOVE-MENTIONED CLASSES OF PERSONNEL IN EXCESS OF THE RATE PROPERLY PAYABLE AS OF JUNE 30, 1932.

THE ACT OF FEBRUARY 28, 1925, 43 STAT. 1053, PROVIDES:

THE RESPECTIVE COMPENSATION OF POSTMASTERS OF THE FIRST, SECOND, AND THIRD CLASSES SHALL BE ANNUAL SALARIES, GRADED IN EVEN HUNDREDS OF DOLLARS, AND PAYABLE IN SEMIMONTHLY PAYMENTS TO BE ASCERTAINED AND FIXED BY THE POSTMASTER GENERAL FROM THEIR RESPECTIVE QUARTERLY RETURNS TO THE GENERAL ACCOUNTING OFFICE, OR COPIES OF DUPLICATES THEREOF TO THE FIRST ASSISTANT POSTMASTER GENERAL, FOR THE CALENDAR YEAR IMMEDIATELY PRECEDING THE ADJUSTMENT, BASED ON GROSS POSTAL RECEIPTS AT THE FOLLOWING RATES, NAMELY: * * *

THIRD CLASS--- $1,500, BUT LESS THAN $1,600, $1,100; $1,600, BUT LESS THAN $1,700, $1,200; * *

PROVIDED, THAT POSTMASTERS AT OFFICES OF THE THIRD CLASS SHALL BE GRANTED FOR CLERK HIRE AN ALLOWANCE OF $250 PER ANNUM WHERE THE SALARY OF THE POSTMASTER IS $1,100 PER ANNUM; * * * AN ALLOWANCE OF $1,600 PER ANNUM WHERE THE SALARY OF THE POSTMASTER IS $2,300 PER ANNUM: PROVIDED FURTHER, THAT THE POSTMASTER GENERAL MAY MODIFY THESE ALLOWANCES FOR CLERK HIRE TO MEET VARYING NEEDS, BUT IN NO CASE SHALL THEY BE REDUCED BY SUCH MODIFICATION MORE THAN 25 PERCENT:PROVIDED HOWEVER, THAT THE AGGREGATE OF SUCH ALLOWANCES, AS MODIFIED, SHALL NOT EXCEED IN ANY FISCAL YEAR THE AGGREGATE OF ALLOWANCES HEREIN PRESCRIBED FOR POSTMASTERS OF THE THIRD CLASS. * * *

FOURTH CLASS * * * PROVIDED, THAT WHEN THE TOTAL COMPENSATION OF ANY POSTMASTER AT A POST OFFICE OF THE FOURTH CLASS FOR THE CALENDAR YEAR SHALL AMOUNT TO $1,100, EXCLUSIVE OF 3 CENTS COMMISSION ON EACH MONEY ORDER ISSUED, AND THE RECEIPTS OF SUCH POST OFFICE FOR THE SAME PERIOD SHALL AGGREGATE AS MUCH AS $1,500, THE OFFICE SHALL BE ASSIGNED TO ITS PROPER CLASS ON JULY 1 FOLLOWING AND THE SALARY OF THE POSTMASTER FIXED ACCORDING TO THE RECEIPTS: * * * (AS AMENDED BY ACT OF JUNE 4, 1926, 44 STAT. 696.)

SECTION 352 OF THE POSTAL LAWS AND REGULATIONS, 1924, PROVIDES:

WHEN AN ALLOWANCE IS MADE FOR CLERICAL ASSISTANCE AT ANY POST OFFICE OF THE THIRD OR FOURTH CLASS, THE POSTMASTER MAY EMPLOY ANY RESPONSIBLE AND TRUSTWORTHY PERSON WHO IS COMPETENT AND CAN TAKE THE OATH OF OFFICE. (SEE SEC. 32.) NO REPORT OF THE PERSON EMPLOYED NEED BE MADE TO THE POST OFFICE DEPARTMENT.

IT IS BELIEVED THE DECISION OF THIS OFFICE, SUPRA, MAY HAVE BEEN MISAPPLIED TO SOME EXTENT AND THE FOLLOWING QUESTIONS HAVE ARISEN IN CONNECTION WITH THE PROPER APPLICATION THEREOF.

1. MAY A FOURTH-CLASS POST OFFICE BE ADVANCED TO THE THIRD CLASS EFFECTIVE JULY 1, 1932, AND THE SALARY OF THE POSTMASTER FIXED AT $1,100, THE MINIMUM OF THE GRADE?

2. MAY AN ALLOWANCE FOR CLERK HIRE BE GRANTED TO SUCH A THIRD-CLASS POST OFFICE, WHICH PRIOR TO JULY 1, 1932, WAS IN THE FOURTH CLASS, IN EXCESS OF THE AMOUNT ALLOWABLE FOR A SALARY OF $1,100, IF THE SALARY OF THE POSTMASTER WOULD NORMALLY BE FIXED AT A HIGHER RATE?

3. IF THE PAY OF A CLERK AT A THIRD-CLASS POST OFFICE IS AT A RATE IN EXCESS OF $1,000 PER ANNUM, SHALL DEDUCTION OF 8 1/3 PERCENT BE MADE UNDER THE PROVISIONS OF SECTION 105 (D) (5) OF THE ECONOMY ACT?

IT IS UNDERSTOOD THAT YOUR ADDITIONAL CERTIFICATES MERELY REDUCES THE SALARY OF POSTMASTERS OF THE FOURTH CLASS PRIOR TO JULY 1, 1932, TO THE AMOUNT THEY COULD HAVE RECEIVED AS OF JUNE 30, 1932, VIZ, $1,100 PER ANNUM, AND THAT THE POST OFFICES ARE TO REMAIN IN A THIRD CLASS, TO WHICH THEY WERE ADVANCED JULY 1, 1932, BY YOUR PRIOR ORDER. ON THIS BASIS THE SALARY OF THE POSTMASTERS WOULD REMAIN AT $1,100 THROUGH THE FISCAL YEAR, AND THERE MIGHT BE PAID ADDITIONAL ALLOWANCE FOR CLERK HIRE AS IN A THIRD CLASS, WHILE IF THE OFFICE HAD REMAINED IN THE FOURTH CLASS, THE POSTMASTERS' COMPENSATION, BASED ON THE CANCELLATIONS AND RECEIPTS OF THE OFFICE, MIGHT NOT AMOUNT TO $1,100 AND HE WOULD NOT BE ENTITLED TO AN ADDITIONAL ALLOWANCE FOR CLERK HIRE.

WHILE THERE IS NOTHING IN THE ECONOMY ACT TO PREVENT THE ADVANCEMENT OF A POST OFFICE FROM ONE CLASS TO ANOTHER, BASED ON THE POSTAL BUSINESS, IN VIEW OF THE PROVISIONS OF SECTIONS 201 AND 202 OF THE ECONOMY ACT, THE BASIS FOR COMPUTING THE COMPENSATION OF THE POSTMASTERS OF THE OFFICE ADVANCED MAY NOT BE SO CHANGED BY REASON OF SUCH ADVANCEMENT AS TO INCREASE THE COMPENSATION OF THE POSTMASTER FOR THE FISCAL YEAR 1933. THE DECISION OF JULY 30, 1932, SUPRA, SHOULD BE APPLIED ACCORDINGLY. IN ORDER TO PREVENT SUCH A RESULT, THE COMPENSATION OF A POSTMASTER WHO, PRIOR TO JULY 1, 1932, WAS OF THE FOURTH CLASS, WILL CONTINUE DURING THE FISCAL YEAR 1933 TO BE COMPUTED AS IN THE FOURTH CLASS, ALTHOUGH FOR OTHER PURPOSES, INCLUDING THE PAYMENT OF AN ADDITIONAL ALLOWANCE FOR CLERK HIRE, WHICH DOES NOT CONSTITUTE A PART OF THE COMPENSATION OF THE POSTMASTER, THE POST OFFICE HAS BEEN ADVANCED TO THE THIRD CLASS.

THE QUESTIONS ABOVE STATED ARE ANSWERED AS FOLLOWS:

1.A FOURTH-CLASS POST OFFICE MAY BE CONSIDERED AS ADVANCED TO THE THIRD CLASS, BUT THE SALARY OF THE POSTMASTER MAY NOT BE FIXED AS IN THAT CLASS.

2. THIS QUESTION IS ANSWERED IN THE AFFIRMATIVE.

3. PERSONS EMPLOYED BY POSTMASTERS OF THE THIRD CLASS AND PAID FROM THE STATUTORY ALLOWANCE FOR CLERK HIRE ARE REQUIRED TO TAKE AN OATH OF OFFICE AS EMPLOYEES OF THE FEDERAL GOVERNMENT, AND THE ALLOWANCE FOR CLERK HIRE FROM WHICH THE POSTMASTERS PAY THE SALARIES CONSTITUTES AN APPROPRIATION FOR PERSONAL SERVICES. THE POSTMASTER IS REQUIRED TO SUBMIT WITH HIS ACCOUNTS VOUCHERS SIGNED BY THE CLERK TO WHOM THE ALLOWANCE IS PAID. CLEARLY SUCH CLERKS RENDER "SERVICES IN OR UNDER" A "BRANCH OR SERVICE OF THE UNITED STATES GOVERNMENT" WITHIN THE PURVIEW OF SECTION 104 (A) OF THE ECONOMY ACT AND, THEREFORE, MUST BE REGARDED AS EMPLOYEES WITHIN THE MEANING OF SECTION 105 (D) (5) OF SAID ACT WHICH REQUIRES AN 8 1/3 PERCENT REDUCTION IN THE COMPENSATION OF ,POSTMASTERS AND POSTAL EMPLOYEES OF POST OFFICES OF THE FIRST, SECOND, AND THIRD CLASSES WHOSE SALARIES OR ALLOWANCES ARE BASED ON GROSS POSTAL RECEIPTS, AND POSTMASTERS OF THE FOURTH CLASS.' ACCORDINGLY, THIS QUESTION IS ANSWERED IN THE AFFIRMATIVE. THE IMPOUNDING REQUIREMENTS MAY NOT BE AVOIDED BY REDUCTION IN THE RATES OF COMPENSATION PAID BY POSTMASTERS UNDER THE ALLOWANCE FOR CLERK HIRE TO RATES OF $1,000 OR LESS AND THE EMPLOYMENT OF ADDITIONAL EMPLOYEES.