Accordingly, in the interests of good administration, the commission recommended an Executive order to the President, which was signed on October 18, 1926, to remove what appeared to the commission to be restrictions not warranted by existing conditions and to smooth the course of the personnel operations of the various departments and establishments in making salary increases, promotions, and reinstatements with due regard to the civil service act, the classification act, the efficiency rating system, the "average provision" of the appropriation acts, and the availability of funds for personal services. This Executive order changed the existing civil-service regulations and practices as to examination requirements in the departmental service in the following respects: 1. Persons allocated out of status were, under the previous order of June 19, 1924, limited to a salary conformable to their civil-service status, although less than the maximum of the compensation range for the class of positions occupied by them on July 1, 1924. Under the Executive order of October 18, 1926, they are declared eligible, under the civil-service rules, without further examination, for salary increases up to the maximum of such compensation range, within the discretion of the head of the department or establishment, while occupying a position of the same class as that occupied on July 1, 1924. Such salary increase must also, of course, be permissible under the efficiency rating rules and regulations promulgated by the Bureau of Efficiency and approved by the Personnel Classification Board, the "average provision" of the appropriation acts, or other restrictions duly authorized or enacted. 2. Persons allocated out of status on July 1, 1924, who were subsequently separated from the service or demoted by reason of a reduction of force or for other reasons not involving fault, delinquency, misconduct, or inefficiency on their part, may now be reinstated or promoted back, as the case may be, without examination, to the same class of positions as that occupied on July 1, 1924, when nominated by the same department or establishment as that in which they were employed on July 1, 1924, upon a finding by the commission that the reinstatement or promotion back is otherwise in accordance with the civil-service rules and in the interests of the service. After such reinstatement or promotion they have the same status as if they had remained continuously in the position since July 1, 1924. EXTENSION OF THE MERIT SYSTEM The expansion of the competitive classified service from 13,780 positions in 1883 to 422,998, or 75 per cent of the total number of Federal employees, has been brought about in large part through the exercise by successive Presidents of the authority conferred by the civil service act to bring additional classes of employees into the competitive system by Executive order. The civil service act, however, excludes from its operation "any person who has been nominated for confirmation by the Senate," without the direction of the Senate. The Senate in no instance has given such direction and political appointments in this most important class are still made. They are chiefly field officers, such as postmasters, collectors of customs and internal revenue, and marshals, about 16,700 in number. In its recent opinion in the Myers case the Supreme Court said that it is the intervention of the Senate in the appointment of these officers which prevents their classification into the merit system, and added: If such appointments were vested in the heads of departments to which they belong they could be entirely removed from politics, and that is what a number of Presidents have recommended. * The extension of the merit system rests with Congress. There is one other element which helps to make these positions political and that is the tenure of office act which vacates the offices each four years. No effective tradition of appointment upon a basis of merit, or by promotion, and tenure during good behavior, can be assured, and stability of expert administration obtained while the principle of rotation in office is automatically presented upon each change of administration. Another important group of employees which remain subject to the patronage system consists of about 6,000 positions, with salaries ranging from $1,200 to $7,500 a year, which are excepted from examination by specific legislation, principally deputy collectors of internal revenue and deputy marshals. By a rider on a deficiency appropriation in 1913 Congress provided that deputy collectors of internal revenue and deputy marshals may be appointed "without regard to the civil service act. This provision has been construed to allow of the appointment without examination of large numbers of mere clerks, typewriters, etc., under the nominal designation of "deputy collector." In the creation of a number of new bureaus since 1913 Congress has excepted some or all positions from examination. Such exceptions are unnecessary since the President has power to make all needful exceptions. Classified employees as a rule are reluctant to accept promotion or transfer to these unclassified positions, thereby sacrificing stable tenure and subjecting themselves to political influence. THE BUREAU OF PROHIBITION An act of Congress of March 3, 1927, created the Bureau of Prohibition in the Treasury Department and brought under the provisions of the civil service law all positions in that bureau, excepting the single position of commissioner. The act provided that: The Commissioner of Prohibition, with the approval of the Secretary of the Treasury, is authorized to appoint in the Bureau of Prohibition such employees in the field service as he may deem necessary, but all appointments of such employees shall be made subject to the provisions of the civil service laws, notwithstanding the provisions of section 38 of the national prohibition act, as amended. The term of office of any person who is transferred, under this section, to the Bureau of Prohibition, and who was not appointed subject to the provisions of the civil service laws, shall expire upon the expiration of six months from the effective date of this act. It became necessary, therefore, that those already employed should be competitively examined, be reached for certification, and be selected for appointment on the same basis with all other persons. The commission promptly announced open competitive examinations for the various positions under the bureau. Approximately 19,000 formal applications were filed. Owing to the failure of passage of the deficiency appropriation bill by the last Congress, the commission was not provided with funds for this unusual examination task. Because of this failure there will be delay in the completion of the rating of examinations and the certification of eligibles. All of the 19,000 applications have been given preliminary consideration and the written examinations have been given in all cases where such examinations were required. With its present facilities the commission plans to complete the full examination process for the administrative positions without much delay. The administrative positions are assistant commissioner, chief of special agents, field supervisor, administrator, assistant administrator for enforcement work, assistant administrator for permissive work, and deputy administrator. The oral tests for the administrative positions have been given. The character investigations for the administrative positions are now being made. It is expected that late in the fall the commission will be able to make certifications of eligibles for such administrative vacancies as have not been filled through transfer, promotion, or reinstatement of employees already possessing a classified civil-service status. The rating of the papers resulting from the written examination is proceeding as rapidly as the limited funds now available will permit. The procedure of oral tests, character investigations, and fingerprinting will be carried out in examinations for positions other than the administrative positions named above when funds are provided for the purpose. 3 The incumbents of the 2,433 positions are now serving under temporary appointments in accordance with the rules. If they are competitors for retention, they are receiving the same tests that are applied to all other applicants. The temporary appointees will be permitted to retain their temporary status until the examinations for 8 Two hundred and fifty-one of these positions are in the department at Washington and 2,182 in the field service. their positions are completed and eligibles are certified, unless removed by the department for administrative reasons. The prohibition work, therefore, proceeds without interruption, notwithstanding the delay in the completion of the examinations and the certification of eligibles. In a letter of September 30, 1927, the Commissioner of Prohibition said: * The act placing the Prohibition Service in the classified civil service and subject to competitive examination will, no doubt, have the effect of stabilizing the service and there will not be upsets with each change of administration or prohibition administrator. The agent, too, will feel that he is under obligation to no one for his appointment and will be in a better position to see only his duty and do it. If there is one service in the Government which should be removed from the realms of partisan politics, it is believed that that service is law-enforcement work. If a person enters the Prohibition Service without obligation to anyone for his job and feels that he has a reasonably permanent tenure, conditioned on good behavior only, and does not feel that he has a place while his political party is in power or while his sponsor is in office, it is believed it will be much easier for that person to go the straight and narrow path than if the bootlegger is able to appeal to the agent that he had "better get his while the getting is good" and, at best, holds a temporary place. We have not, as yet, been able to feel the good effects of placing our agents in the classified civil service but it is believed we will be able to feel them within the next year. Unfortunately, Congress did not give the Civil Service Commission adequate funds to mark the papers for the Prohibition Service, and on that account the work of establishing eligible lists for the Prohibition Service has been delayed. APPROPRIATIONS AND EXPENDITURES The appropriations and expenditures for the fiscal year 1927 were as follows: Salaries: Office--- Field force___. Expert examiners_. Traveling expenses-- APPROPRIATIONS Contingent and miscellaneous expenses Rent of building- Printing and binding Total regular appropriation--- Salaries and expenses, employees' retirement act--- Salaries and expenses, presidential postmaster examinations-- Total funds available during 1927--- $470,000.00 330,000.00 2,000.00 18, 000. 00 38, 000. 00 24, 592. 00 58,000.00 940, 592.00 35,000.00 26, 000. 00 1, 001, 592. 00 EXPENDITURES Classification of objects of expenditure as set forth in General Accounting Office Bulletin No. 1, of May 11, 1922: The appropriations for the fiscal year 1928 are as follows: The item for salaries and expenses, employees' retirement act, was combined by action of Congress with the item for salaries, office force. SUGGESTIONS The civil service act provides for suggestions in the reports of the commission" for the more effectual accomplishment of the purposes of this act." (1) We renew the suggestion made in previous reports for legislation to place field presidential positions which are nonpolicy determining, such as collectors of customs and internal revenue and postmasters, in the classified service, dispensing with confirmation by the Senate and the four-year term of office, leaving to the President his discretionary power of making such rules and exceptions as he may deem necessary. |