Your committee has had this matter under consideration for some time and has held exhaustive hearings on the subject. It is believed that an injustice is done these third-class postmasters whose offices are not in Government-leased quarters in compelling them to furnish the equipment and pay over the receipts to the Government. Your committee therefore recommends that 50 per cent of the box rents collected at such offices be paid to the postmasters as allowances for personally owned or rented post-office fixtures and equipment.

For some years the department has had under advisement the matter of equipping all third-class post offices. A definite program to that end is receiving consideration in the department, and in order that the present bill may not interfere with any steps the department has in mind, at this time, it is recommended that the proposed legislation be made effective July 1, 1932. It is also to be noticed that the provisions of the bill will apply only in those cases where the fixtures and equipment are not provided by the department. The Postmaster General's report on the bill is as follows:

Hon. A. D. SANDERS,

POST OFFICE DEPARTMENT, Washington, D. C., February 11, 1930.

Chairman Committee on the Post Office and Post Roads,

Washington, D. C.

MY DEAR MR. CHAIRMAN: With further reference to your letter of the 15th ultimo, requesting an expression of my views on H. R. 229, a bill granting equipment allowance to third-class postmasters, in view of the additional expense involved, approximately $1,214,000 per annum, and the fact that no provision is made for the character and amount of the equipment to be furnished by the postmasters, it is recommended that an adverse report be made on the bill in question.

Very truly yours,

SALARIES OF SUPERVISORY OFFICIALS AT FIRST-CLASS POST OFFICES

MARCH 2, 1931.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. KENDALL of Pennsylvania, from the Committee on the Post Office and Post Roads, submitted the following

REPORT

[To accompany H. R. 14908]

The Committee on the Post Office and Post Roads, having had under consideration the bill (H. R. 14908) to amend the act reclassifying the salaries of postmasters and employees of the Postal Service, readjusting their salaries and compensation on an equitable basis, increasing postal rates to provide for such readjustment, and for other purposes, reports the same back to the House with the following amendment:

Strike out everything after the enacting clause and insert the following:

That after section 3, under the heading "Reclassification of postal salaries" of the act entitled "An act reclassifying the salaries of postmasters and employees of the Postal Service, readjusting their salaries and compensation on an equitable basis, increasing postal rates to provide for such readjustment, and for other purposes," approved February 28, 1925 (43 Stat. 1056; U. S. C., title 39), there shall be added the following:

"

"Provided, That during the fiscal year 1932 no postmaster or assistant postmaster or employee other than those in automatic grades shall suffer a reduction in salary because the gross receipts have fallen below the higher classification or because of the reduction in number of employees assigned to any station or unit. So amended, the committee recommends that the bill do pass. The present law provides that the annual salaries of supervisory employees at first-class offices shall be based on the gross postal receipts for the preceding calendar year. The effect of the bill (H. R. 14908) as introduced would be to defer any reduction in pay resulting from diminished postal receipts until the receipts had fallen below the existing classification for two consecutive years. The Post Office Department estimates that 732 supervisory officials would be affected

by this bill and that the cost would be in the neighborhood of $130,000 for the fiscal year 1932. The Postmaster General's report on this bill follows:

Hon. ARCHIE D. SANDERS,

OFFICE OF THE POSTMASTER General,
Washington, D. C., January 20, 1931.

Chairman Committee on the Post Office and Post Roads,

House of Representatives.

MY DEAR MR. SANDERS. As requested by you on January 15, I am glad to furnish a statement of my views regarding H. R. 14908.

The bill referred to would add the following provision to the second paragraph of section 5 of the postal reclassification act of February 28, 1925:

"Provided, That no employee shall suffer a reduction in salary until after the gross receipts shall fall below the higher classification for two consecutive years." The present law provides that the annual salaries of supervisory employees at first class post offices shall be based on the gross postal receipts for the preceding calendar year. The effect of the proposed amendment would be to defer any reduction of pay resulting from diminished postal receipts until the receipts had fallen below the existing classification for two consecutive years.

The object sought is, apparently, to prevent reductions of compensation which would necessarily be made under existing law on account of diminished postal receipts during the calendar year 1930. It is estimated that the cost of the proposed change would be in the neighborhood of $130,000 for the fiscal year 1932. What, if any, additional cost would result in future years from the passage of the proposed measure can not be estimated with any degree of accuracy.

The act of February 28, 1925, provides that the salaries of supervisory employees in first-class post offices shall be based upon the gross postal receipts for the preceding calendar year, and contemplates annual increase or decrease in the rates of compensation conditioned upon increases or decreases in gross receipts. It is apparently the theory of the law that the volume of business done, as reflected in the gross revenues, is the most satisfactory measure of the compensation properly to be paid employees of the classes enumerated. In the department's opinion, it would follow that the compensation of employees of these groups should in fairness be just as responsive to decreases in revenues as to increases. It is the department's view that so long as the present theory prevails, basing the compensation of supervisory employees upon revenues, there would be no justification for legislation that would, while requiring immediate increases of pay in proportion to increases of revenues, defer the effect of diminishing receipts in the manner contemplated by H. R. 14908.

In this connection attention is invited to the fact that the salaries of the chief supervisory officers in post offices of the first, second, and third classes-the postmasters themselves-are and have always been adjusted on the basis of the gross receipts of their offices for the preceding calendar year. While postmasters are not included in the provisions of H. R. 14908, mention is made of these officials merely to call attention to the fact that they are supervisors, and that a sufficient decrease in the gross receipts at their respective offices results in a reduction in their salaries. Under the provisions of H. R. 14908, while a decline in receipts might involve a reduction in their salaries, the salaries of their subordinate supervisors would not be affected until the gross receipts fell below the existing classification for two consecutive years.

The proposed legislation does not meet with my approval, and I recommend that it be not favorably considered.

Very truly yours,

WALTER F. BROWN.

In view of the many employees throughout the country whose salaries will be decreased by the drop in postal receipts at their offices for the calendar year 1930, your committee believes that emergency legislation should be enacted to prevent such reductions; and as the salary readjustments based on the gross postal receipts for the calendar year recently ended (1930) will take effect next July, your committee recommends that the bill be amended so as to cover their salaries for the succeeding year, or, in other words, for the fiscal year 1932.

The salaries of postmasters, assistant postmasters, and supervisory employees at classified stations are also based on the postal receipts at their office or station, and your committee believes that these postmasters and postal employees should also be included in the bill. (At classified stations the salaries of supervisory employees are based on the number of employees assigned thereto and the annual postal receipts.)

Below is given a comparative print of the bill (H. R. 14908), as introduced, with existing law (second paragraph of sec. 3, under the heading "Reclassification of postal salaries," of the act entitled "An act reclassifying the salaries of postmasters and employees of the Postal Service, readjusting their salaries and compensation on an equitable basis, increasing postal rates to provide for such readjustment, and for other purposes," approved February 28, 1925; 43 Stat. 1056; U. S. C., title 39, sec. 86), showing in black brackets the words omitted and the new matter in italics:

That at offices of the first class the annual salaries of [the] employees, other than those in the automatic grades, shall be in even hundreds of dollars, based on the gross postal receipts for the preceding [calendar]. year, [as follows:] as shown in the table following this paragraph: Provided, That no employee shall suffer a reduction in salary until after the gross receipts shall fall below the higher classification for two consecutive years.

The committee's amendment to the first paragraph of the bill (H. R. 14908) is to insert a United States Statute and Code reference and to provide that the proposed legislation shall be inserted following section 3 of such act instead of amending the second paragraph of that section. Below is printed section 3 of the act referred to, showing in italics at the end thereof the paragraph recommended by your committee.

SEC. 3. That at offices of the second class the annual salaries of assistant postmasters shall be in even hundreds of dollars, based on the gross postal receipts for the preceding calendar year, as follows: $8,000, but less than $10,000, $2,200; $10,000, but less than $12,000, $2,200; $12,000, but less than $15,000, $2,200; $15,000, but less than $18,000, $2,300; $18,000, but less than $22,000, $2,300; $22,000, but less than $27,000, $2,400; $27,000, but less than $33,000, $2,400; $33,000, but less than $40,000, $2,500.

That at offices of the first class the annual salaries of the employees, other than those in the automatic grades, shall be in even hundreds of dollars, based on the gross postal receipts for the preceding calendar year, as follows:

Receipts $40,000, but less than $50,000-assistant postmaster, $2,600; superintendent of mails, $2,400. Receipts $50,000, but less than $60,000-assistant postmaster, $2,600; superintendent of mails, $2,400. Receipts $60,000, but less than $75,000-assistant postmaster, $2,600; superintendent of mails, $2,400. Receipts $75,000, but less than $90,000-assistant postmaster, $2,700; superintendent of mails, $2,500. Receipts $90,000, but less than $120,000-assistant postmaster, $2,700; superintendent of mails, $2,600; foremen, $2,500. Receipts $120,000, but less than $150,000-assistant postmaster, $2,800; superintendent of mails, $2,700; foremen, $2,500. Receipts $150,000, but less than $200,000— assistant postmaster, $2,900; superintendent of mails, $2,800; foremen, $2,500. Receipts $200,000, but less than $250,000-assistant postmaster, $3,000; superintendent of mails, $2,900; foremen, $2,500. Receipts $250,000, but less than $300,000-assistant postmaster, $3,100; superintendent of mails, $3,000; assistant superintendent of mails, $2,600; foremen, $2,500. Receipts $300,000, but less than $400,000-assistant postmaster, $3,200; superintendent of mails, $3,100; assistant superintendent of mails, $2,600; foremen, $2,500. Receipts $400,000, but less than $500,000-assistant postmaster, $3,300; superintendent of mails, $3,200; assistant superintendent of mails, $2,600; foremen, $2,500. Receipts $500,000, but less than $600,000-assistant postmaster, $3,500; superintendent of mails, $3,300; assistant superintendent of mails, $2,600; foremen, $2,500; postal cashier, $2,900; money-order cashier, $2,600. Receipts $600,000, but less

than $1,000,000-assistant postmaster, $3,700; superintendent of mails, $3,500; assistant superintendent of mails, $2,800; foremen, $2,500; postal cashier, $3,100; money-order cashier, $2,800. Receipts $1,000,000, but less than $2,000,000— assistant postmaster, $3,900; superintendent of mails, $3,700; assistant superintendents of mails, $2,700, $2,800, and $3,100; foremen, $2,500 and $2,600; postal cashier, $3,300; assistant cashiers, $2,600; money-order cashier, $3,000; bookkeepers, $2,400; station examiners, $2,400. Receipts $2,000,000, but less than $3,000,000-assistant postmaster, $4,000; superintendent of mails, $3,800; assistant superintendents of mails, $2,700, $2,800, $3,000, and $3,300; foremen, $2,500 and $2,600; postal cashier, $3,400; assistant cashiers, $2,600 and $2,900; money-order cashier, $3,100; bookkeepers, $2,400 and $2,500; station examiners, $2,600. Receipts $3,000,000, but less than $5,000,000-assistant postmaster, $4,100; superintendent of mails, $3,900; assistant superintendents of mails, $2,700, $2,800, $3,100, and $3,500; foremen, $2,500 and $2,600; postal cashier, $3,600; assistant cashiers, $2,600, $2,800, and $3,100; money-order cashier, $3,300; bookkeepers, $2,400 and $2,500; station examiners, $2,600 and $2,800. Receipts $5,000,000, but less than $7,000,000-assistant postmaster, $4,300; superintendent of mails, $4,100; assistant superintendents of mails, $2,700, $2,800, $3,100, $3,300, and $3,700; foremen, $2,500 and $2,600; postal cashier, $3,800; assistant cashiers, $2,600, $2,900, and $3,100; money-order cashier, $3,500; bookkeepers, $2,400, $2,500, and $2,600; station examiners, $2,600 and $2,800. Receipts $7,000,000, but less than $9,000,000-assistant postmasters $4,600; superintendent of mails, $4,300; assistant superintendents of mails, $2,700, $2,800, $3,100, $3,500, and $3,900; foremen, $2,500 and $2,600; postal cashier, $4,000; assistant cashiers, $2,600, $2,800, $3,100, and $3,400; money-order cashier, $3,600; bookkeepers, $2,400, $2,500, and $2,600; station examiners, $2,600 and $2,800. Receipts $9,000,000, but less than $20,000,000-assistant postmasters, $4,700 and $4,800; superintendent of mails, $4,500; assistant superintendents of mails, $2,800, $2,900, $3,100, $3,500, $3,700, and $4,100; foremen, $2,500, $2,600, and $2,700; postal cashier, $4,100; assistant cashiers, $2,600, $2,800, $3,200, and $3,600; money-order cashier, $3,700; bookkeepers, $2,400, $2,500, $2,600, and $2,800; station examiners, $2,600 and $2,800. Receipts $20,000,000 and upward-assistant postmasters, $4,800 and $4,900; superintendent of mails, $4,700; assistant superintendents of mails, $2,800, $2,900, $3,100, $3,500, $3,900, and $4,100; superintendent of delivery, $4,700; assistant superintendents of delivery, $2,800, $2,900, $3,100, $3,500, $3,900, and $4,100; foremen, $2,500, $2,600, and $2,700; superintendent of registry, $4,300; assistant superintendent of registry, $2,800, $2,900, $3,100, $3,500, and $4,100; superintendent of money order, $4,300; assistant superintendent of money order, $4,100; auditor, $4,000; postal cashier, $4,300; assistant cashiers, $2,600, $2,800, $3,100, $3,300, and $3,800; money-order cashier, $3,900; bookkeepers, $2,400, $2,600, $2,800 and $3,300; station examiners, $2,600, $2,800, and $3,000.

The salary of superintendents of classified stations shall be based on the number of employees assigned thereto and the annual postal receipts. No allowance shall be made for sales of stamps to patrons residing outside of the territory of the stations. At classified stations each $25,000 of postal receipts shall be considered equal to one additional employee.

At classified stations the salary of the superintendent shall be as follows: One and not exceeding five employees, $2,400; six and not exceeding eighteen employees, $2,500; nineteen and not exceeding thirty-two employees, $2,600; thirty-three and not exceeding forty-four employees, $2,700; forty-five and not exceeding sixty-four employees, $2,800; sixty-five and not exceeding ninety employees, $2,900; ninety-one and not exceeding one hundred and twenty employees, $3,000; one hundred and twenty-one and not exceeding one hundred and fifty employees, $3,100; one hundred and fifty-one and not exceeding three hundred and fifty employees, $3,300; three hundred and fifty-one and not exceeding five hundred employees, $3,500; five hundred and one or more employees, $3,800. At classified stations having forty-five or more employees there shall be assistant superintendents of stations with salaries as follows: Forty-five and not exceeding sixty-four employees, $2,400; sixty-five and not exceeding ninety employees, $2,500; ninety-one and not exceeding one hundred and twenty em ployees, $2,600; one hundred and twenty-one and not exceeding one hundred and fifty employees, $2,700; one hundred and fifty-one and not exceeding three hundred and fifty employees, $2,900; three hundred and fifty-one and not exceeding five hundred employees, $3,100; five hundred and one employees and upward, $3,400: Provided, That not more than two assistant postmasters shall be employed at offices where the receipts are $9,000,000 and upward: