Property Custodian, Tariff Commission, Employees' Compensation Commission, Federal Board for Vocational Education, General Accounting Office, Veterans' Bureau, Railroad Administration, War Finance Corporation, National Advisory Committee for Aeronautics, Board of Tax Appeals, and Board of Mediation, with a total of 28,532 employees on June 30, 1927, which partially accounts for the gain of 63,226 employees in the service, exclusive of the Postal Service. The normal increase in the work of the older establishments and work incidental to the war necessitated an increase of 34,694 in personnel and accounts for the remaining increase during this period.

The tables following show these changes for each department and office and the extent of the service on June 30, 1927:

TABLE I.—Increase or decrease of employment in the Federal executive civil service during the last fiscal year and during the past 11 years

? This is exclusive of details from other Government establishments.

This represents the consolidation of a large number of groups of custodial employees and the administration of the following new activities: Arlington Memorial Bridge Commission, National Capital Park and Planning Commission, Public Buildings Commission, and Rock Creek and Potomac Parkway Com. mission.

The act of Congress May 20, 1926, creating the Board of Mediation abolished the Railroad Labor Board.

TABLE II.-Number of employees in each branch of the Federal executive civil service on June 30, 19271

1 Does not include legislative or judicial services, nor the commissioned, warranted, or enlisted personnel of the military, naval, Marine Corps, or Coast Guard services, nor the government of the District of Columbia.

2 Approximated.

Includes 13,200 clerks at third-class offices, 203 screen-wagon contractors, 274 carriers for offices having special supply, 5,528 clerks in charge of contract stations, 11,215 star-route contractors, and 271 steamboat contractors. Does not include 34,809 clerks at fourth-class offices who are employed and paid by the postmaster, and 22,131 mail messengers not included in previous computations.

Includes administrative offices of Emergency Fleet Corporation, but not workmen at shipyards or in warehouses or employees on vessels.

• Positions not subject to the civil service act.

TABLE III.-War expansion and reduction since armistice

INCLUSION WITHIN THE CLASSIFIED SERVICE

Positions and employees brought into the classified service during the fiscal year 1926-27, with citation of authority:

Executive order of Oct. 9, 1908-

2

Executive order of Aug. 22, 1925 (including those appointed without examination under war emergency orders) –

58

Executive order of June 2, 1926 (providing that certain Indian boarding schools in the Five Civilized Tribes of Oklahoma be placed within the classified service---

Executive orders, individual cases (order of Sept. 15, 1926; order of
May 18, 1927; order of June 6, 1927) –

3

Rule II, section 6, positions and occupants included under (office of Public Buildings and Public Parks of the National Capital, 20; post office, Boston, Mass., 5; Smithsonian Institution, 2; Department of Justice, 1; Immigration Service, 1; United States Veterans' Bureau, 1)_

Under section 7 (Post Office Service).

Rule X, section 10, transfer from Philippine service to naval station at
Cavite, P. I______.

Under section 13, classified for long and meritorious service over-
seas (naval station, Cavite, 5; experiment station, Fairbanks,
Alaska, 1; quartermaster service, Schofield Barracks, Hawaii, 1:
Philippine quartermaster depot, Manila, P. I., 1; quartermaster
service, Paris, France, 1; quartermaster service, Manila, P. I., 1)–
Schedule B, Indians appointed under, given a competitive status under
the commission's minute 4 of Dec. 30, 1926 (estimated) –
Act of Mar. 3, 1927, Bureau of Prohibition (see p. 23)--

Total____

30

305

1

10

270

1 2, 433

13, 174

EXAMINATIONS AND APPOINTMENTS

The number of persons examined by the commission during each of the last three fiscal years for original appointment, promotion, transfer, or reinstatement for positions classified under the civilservice rules, and positions not so classified, and also the number appointed each year as the result of such examination, are shown in the following table:

In the Bureau of Prohibition the incumbents of the positions classified were not themselves classified.

During the fiscal year 245,535 people were examined for entrance to the classified service, and 38,777 were appointed, an increase over the preceding year. In the general statistical tables the examinations are divided into four groups, according to the requirements and duties of the positions. Analysis shows that by far the largest numbers examined and appointed were in the "Clerical and general business" group, which included 71 per cent of those examined and 53 per cent of those appointed. The Post Office Service with its large force of clerks and carriers added materially to this group, while the navy yard mechanics swelled the numbers in the "Custodial, labor, and mechanical" group, which this year claimed 23 per cent of the total number examined and 40 per cent of the total appointments. Both the "Professional and scientific" and the Subprofessional" groups had 3 per cent each, of the examined, but appointments to "Subprofessional" positions exceeded those classed as "Professional " by 1 per cent; the former having 4 per cent and the latter 3 per cent of the entire number.

66

EXCEPTIONS FROM PROVISIONS OF THE RULES

Thirty Executive orders waiving some provision of the civilservice rules were issued during the year. Seventeen orders permitted appointments, 9 authorized reinstatements, 3 restored classified status, 1 permitted a transfer, and 1 waived an age limit. These waivers constitute, as usual, an extremely small percentage of the entire number of appointments made.

A compilation of these orders appears in the appendix of this report.

A statement concerning the positions excepted from competition under Schedules A and B of the rules appears in a table in the appendix of this report.

RETIREMENT

The retirement act as amended July 3, 1926, increased the maximum annuity from $720 to $1,000 and the average annuity has increased from $544.64 to $721.39. Deductions from salaries were increased from 22 per cent to 32 per cent to meet this additional expenditure.

The act was extended to 3,469 positions, principally on the Panama Canal, presidential postmasters appointed from the classified service, and municipal employees under the recorder of deeds and the register of wills.

The act provides for the assignment of laborers to the 65-year age group. The 62-year group was broadened to include employees who had served 15 years in the Tropics and employees whose occupation

is hazardous, or requires great physical effort, or exposure to extreme heat or cold. Assignments to age groups are made by joint action of the commission and the department concerned.

To insure uniformity of practice in the continuance of employees beyond retirement age, the act sets up a method of ascertaining efficiency and directs the issuance of continuance "as of course" when the efficiency of an employee has been established.

We have not felt warranted in concurring in all assignments to the 62-year retirement age group proposed by the departments. Any considerable number of such assignments would increase the cost of the system. The committee report of the retirement bill to the House explained that there were certain small groups whose character of work is so wearing and so hazardous that their efficiency is impaired at an earlier age than the ordinary classes of employees. There will no doubt be many changes in retirement legislation based upon experience and cost of maintenance, and as changes prove necessary it will be easier to lower the ages than to raise them. We have therefore been conservative in concurring in assignments to the 62-year group.

It is in the interest of the Government and the employees alike that assignments to the 62-year class should not be overdone. After August 20, 1930, retirement of an employee in the 62-year group will be compulsory at 66, regardless of his fitness or the need for his services; and the employee so assigned will have to give up his life work and salary and accept a smaller income in the form of annuity. Such assignment will shorten by several years the period of productive activity regardless of the needs of the service or the desire of the employee.

It does not follow that because an occupation is rated hazardous by insurance companies the employee should be assigned to the 62year age group. The company may accept or decline any risk, its interest being prospective profit. The Government has no option. It must do the work and accept the hazard. Unless that hazard is increased by retaining an employee beyond 62, there is no gain, but a loss, especially in experience, in retiring him at 62. To justify assignment to that group it should be shown that the hazard, great effort, or exposure of the employee in performance of his duties (1) tend to break down mental or physical powers at an earlier age than do the other occupations; or (2) tend to increase the danger to him or his fellow workers by reason of that slowing of mental and physical faculties which normally accompanies advancing age.

In passing upon proposed assignments to the 62-year age group need is felt of a provision permitting optional retirement at any time after 30 years of service and reaching 60 years of age. This would permit an employee failing in health to retire without reduc