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Michigan Association of Letter Carriers, May 10, 1969 (2)
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The original documents are located in Box D27, folder "Michigan Association of Letter Carriers, May 10, 1969 (2)" of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. The Council donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box D27 of The Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library REPORT of the COMMISSION on EXECUTIVE, LEGISLATIVE, and JUDICIAL SALARIES WASHINGTON, D.C. DECEMBER 1968 REPORT of the COMMISSION on EXECUTIVE, LEGISLATIVE, and JUDICIAL SALARIES WASHINGTON, D.C. DECEMBER 1968 COMMISSION ON EXECUTIVE, LEGISLATIVE, AND JUDICIAL SALARIES Appointed by the President: FREDERICK R. KAPPEL, Chairman Chairman, Board of Directors (retired) American Telephone and Telegraph Company JOHN J. CORSON Consultant and Corporate Director GEORGE MEANY President American Federation of Labor and Congress of Industrial Organizations Appointed by the President of the Senate: STEPHEN K. BAILEY Educator Dean, Maxwell Graduate School Syracuse University SIDNEY J. WEINBERG Investment Banker Senior Partner, Goldman, Sachs & Co. Appointed by the Speaker of the House of Representatives: EDWARD H. FOLEY Lawyer Partner, Corcoran, Foley, Youngman, and Rowe Former Undersecretary of the Treasury WILLIAM SPOELHOF Educator President, Calvin College Appointed by the Chief Justice of the United States: ARTHUR H. DEAN Lawyer Partner, Sullivan and Cromwell Chairman, U.S. Delegation, Nuclear Test Ban and Disarmament Conference WILLIAM T. GOSSETT Lawyer Counsel. Dykema, Wheat, Spencer, Goodnow, and Trigg President, American Bar Association Executive Director Frederick J. Lawton iii TABLE OF CONTENTS FOREWORD Page A year ago Congress decided that the time had come to establish a system for the regular review of the salaries of top level officials Letter of transmittal vii of the three branches of Government. In implementing Congressional Introduction 1 policy on salary rates for Career Service employees, it had been Summary of Recommendations 3 necessary to make compromises and piecemeal adjustments in The Task of the Commission 4 salaries for this group (who constitute the great majority of all The Outdated Structure Pay Structure 4 Federal employees) in order to avoid their materially overlapping Relationships Between Top Level and Career the salary schedules for top officials. Service Compensation 6 To meet the immediate problem and insure periodic review in Salary Levels in Other Sectors 7 the future, the Commission on Executive, Legislative, and Judicial The Problem of Compression 9 Salaries was created. Of its nine members, three are appointed by the Recommended Salaries for Top Level Officials in the President of the United States, two by the President of the Senate, Executive Branch 11 two by the Speaker of the House of Representatives, and two by the Chief Justice of the United States. The first appointees serve for the Recommended Legislative Salaries 12 Recommended Judicial Salaries 14 fiscal year 1969. Every four years thereafter others are to be ap- pointed to review and recommend the rates of pay of the Congress, Supplementary Compensation 16 the Judiciary, and the principal officials of the Executive Branch. In Conclusion 17 These quadrennial reviews and recommendations of the Commission Appendices are to be reported to the President, who, in turn, shall include in A. Legislative provision establishing the Commission --- 19 his next budget his recommendations as to the exact rates of pay he B. Extent of Commission's Jurisdiction 23 deems advisable. 30 C. Positions in Level I through Level V of the The President's recommendations become effective after thirty Executive Schedule or authorized to be days unless in that period either House of Congress specifically paid at Comparable Salary Rates 25 disapproves any or all of them, or a statute has been enacted into D. Pay Rates of $30,000 or more in State and law establishing different rates of pay. Local Government 36 E. Average Compensation-2,537 Chief Execu- tive Officers in Industry 75 F. Percentage Increase in Executive Salaries 1953-1967 76 G. Highest Paid Executives in 1,304 Corpora- tions 77 H. Salaries of Presidents of Federal Reserve Banks 78 iv V LETTER OF TRANSMITTAL The President The White House December 2, 1968 Dear Mr. President: We have the honor to present to you the first report of the Commission on Executive, Legislative, and Judicial Salaries. Our review convinces us that the compensation of the key leader- ship in each of the three branches of Government is seriously out of step with today's standards. We should not permit this to con- tinue at a time when the problems facing our country demand that we attract men of great talent and capacity to public office. When salaries in the business world, in State and Local Government, in the universities have moved and continue to move ahead of Federal Government rates, we may well fear an erosion in the quality of leadership throughout the fabric of Government. We believe the salary rates proposed in this report will improve our capacity to attract and retain men of ability and dedication. We believe they will lessen the need to make personal sacrifices to ac- cept and carry the burdens of public office. In this report we have pointed out other areas that do not fall within our purview but that we believe require further attention. One is the proper utilization of expense allowances in determining total compensation. We suggest that this be the subject of an early study. The second is the obvious need to adjust promptly the salaries of the Vice President, the Speaker, and the Majority and Minority Leaders of the two Houses of Congress. Finally, in our view there should be a reassessment of the compensation of the President. Respectfully submitted, Frederick R. Kappel, Chairman Stephen K. Bailey John J. Corson Arthur H. Dean Edward H. Foley William T. Gossett George Meany William Spoelhof Sidney J. Weinberg vii INTRODUCTION The ability of our nation to meet the challenges of these troubled times depends on the leadership of those who place their talents and energies at the service of their country. It is with the maintenance of the quality of that leadership that we are concerned here. What are the incentives for able men and women to assume positions of leadership? Among them are prestige, the challenge of public service, the opportunity to help solve problems of national and international import, the sense of mission to act for the public good. All are powerfully attractive. At the same time, however, salary inducements must meet the realities of personal and family obligations. They should also reflect in some appreciable degree the level of responsibility involved in the office held. The action of Congress in providing for a review of the pay structure of the top levels of the Executive Branch, the Members of Congress, and the Judiciary is timely. It is made at a time when the complexity of problems at home and abroad demands the service of the best, most capable men and women our country can attract to high public office. The review also comes at a time of Presidential change, with its attendant reorganization in positions of leadership. And it comes at a propitious moment, when the study of salary compensation can be raised above political implications and its objec- tivity be recognized. In accordance with the provisions of the statute creating the Commission, we have reviewed the rates of pay of the designated offices in the three Branches of Government. The conclusion to us is inescapable that present salary levels are not commensurate with the importance of the positions held. They are not sufficient to support a standard of living that indivi- duals qualified for such posts can fairly expect to enjoy and in many instances have established. We should expect the compensation of those to whom we entrust high responsibilities and authority in government to bear some reasonable relationship to that received by their peers in private life. This expectation, however, is not now met. 1 327-824 O 68 2 In this report, accordingly, we set forth our reasons for the above conclusion and our recommendations as to appropriate pay SUMMARY OF RECOMMENDATIONS levels and relationships among top-level positions-and recommen- dations also as to the relationships between these positions and Because of career service positions subject to the General Schedule pay scale. - the long intervals between past adjustments in top level We have sought to propose a reasonable and up-to-date relation- Federal salaries, SO that salaries now paid no longer ship within the Federal structure, as well as between the Federal relate to current economic realities, Government and other sectors, including private industry, education, - the importance of the positions involved, and and State and Local Government. Those sectors need and seek the - comparative salaries in other fields, same talents as does Government. we find that present salary levels are inadequate, and we recommend Orderly periodic reviews will disclose inequities that creep 1. That in the Executive Branch the annual salary levels be as into the pay system. They will be essential, we believe, to enable follows: Government to attract in a competitive market the quality of men Cabinet - Heads of Departments, Level I, $60,000 and women needed to discharge effectively the functions of Govern- - Agency Heads and other Level II positions $50,000 ment. The record of the past is one of piecemeal adjustments, - Under Secretaries and other Level III positions $46,000 varied only occasionally by broadscale revision when pressures built up to the breaking point. - Assistant Secretaries and other Level IV positions $43,000 We believe the recommendations summarized below represent - Major Bureau Heads and other Level V positions $40,000 an appropriate initial step in modernizing the top pay structure of 2. That in the Legislative Branch the annual salary levels be as the Executive, Legislative, and Judicial Branches of the Government. follows: - Senators, Representatives, and the Resident Commissioner from Puerto Rico $50,000 - The Comptroller General $50,000 - The Assistant Comptroller General $46,000 - The Public Printer, Librarian of Congress, Architect of the Capitol, and General Counsel of the General Account- ing Office $43,000 - The Deputy Public Printer, Deputy Librarian of Congress, and Assistant Architect of the Capitol $40,000 3. That in the Judicial Branch the annual salary levels be as follows: The Chief Justice of the United States $67,500 - Associate Justices of the Supreme Court $65,000 - Judges, Circuit Courts, Court of Claims, Court of Customs and Patent Appeals, Court of Military Appeals $50,000 - Judges, District Courts, Customs Court, Tax Court of the United States, and Director, Administrative Office of the United States Courts $47,500 - Commissioners, Court of Claims $40,000 - Deputy Director, Administrative Office of the United States Courts $40,000 - Referees in Bankruptcy-full time-a maximum of $40,000 - Referees in Bankruptcy-part time-a maximum of $20,000 The total annual cost of all increases proposed for the Executive, Legislative and Judicial Branches is $34,700,000. 2 3 The following table shows the four adjustments in salary that THE TASK OF THE COMMISSION have taken place in the last half century for the Supreme Court Justice, the Cabinet Officer, the Member of Congress. The law establishing this Commission requires it to review the 1926 1946 1949 1956 1964 rates of pay of the Members of Congress; certain offices and positions Associate Justices, in the Legislative Branch; the Justices, Judges and specific other Supreme Court $20,000 personnel in the Judicial Branch; and the offices and positions in the $25,000 $35,000 $39,500 Heads of Departments upper levels in the Executive Branch of the Government, designated 15,000 $22,500 25,000 35,000 Members of Congress as Levels I to V of the Executive Schedule. 10,000 15,000 22,500 30,000 One purpose of this review is to determine appropriate pay Though each group that has studied the subject in recent years levels and relationships among the respective offices and positions has come to the conclusion that material increases are necessary to covered, and between those positions and positions in the General establish a reasonable and rational pay structure, action has been Pay Schedules of the Federal Government. Most importantly, our neither timely nor realistic. concern is to establish levels of compensation for those top offices We have the task of evaluating the salaries of positions of the that will, when coupled with the prestige they give and the oppor- highest importance not only within Government but in the nation tunity for service they offer, induce men both to accept and to retain and, indeed, the world. The statute (Public Law 90-206) lists them them. as: The Congress has established a regular procedure for fixing the (A) Senators, Members of the House of Repre- pay of the vast majority of Federal employees on the basis of sentatives, and the Resident Commissioner comparability with the rates paid in the private sector. It has pro- from Puerto Rico. vided for an annual review and recommendation as to necessary (B) The following offices and positions in the Leg- adjustments. Experience of the past few years has shown that it is islative Branch: Comptroller General, the possible to fix with a reasonable degree of accuracy and certainty Librarian of Congress, the Public Printer, standards of comparison between a great number of jobs in Govern- the Architect of the Capitol and their princi- ment and private industry. pal assistants. With respect to the top offices in Government, however, the (C) Justices, Judges, Director and Deputy Direc- situation is different, for it is difficult to find positions in the private tor of the Administrative Office of United sector that are directly comparable. For example, no direct com- States Courts, Commissioners of the Court of parisons are possible between our Legislators and Judges and the Claims, and Referees in Bankruptcy. Executives in business and industry. Nor is the concept of service (D) Offices and positions in the Executive Sched- and prestige that accompany high Federal office measurable in terms dule (Levels I to V) set forth in title 5 of the of the dollar value in the salary. On the other hand, we can draw United States code. (This includes top Execu- comparisons between the top levels of the Career Service and the tive officials up to and including Department Executive levels in Government. We can also compare trends in com- Heads.) pensation in government with trends in the business world, the The General Counsel of the Civil Service Commission has universities, the foundations, and State and Local Government. advised us that the law does not cover the offices of the Vice THE OUTDATED PAY STRUCTURE President, the Speaker, and the Majority and Minority Leaders of the two Houses of Congress. (See Appendix B). We believe it is The failure of Congress to provide for regular review and re- essential that traditional relationships between these offices, the vision of the compensation of the top officials in the Executive, Supreme Court, and the Cabinet be preserved. We shall deal with Legislative, and Judicial Branches of Government has resulted in this matter later in this report. their salaries remaining almost static at a time when those in private Because the actions and decisions of those who occupy the posi- business, in State and Local Government, and in education, as well tions named in the statute SO deeply affect all of us, every factor that as salaries in the Career Service of Federal Government, were can contribute to securing the ablest and best qualified people must moving steadily upward. An American Management Association be carefully weighed. study published in 1967 (Appendix F) shows that in the last five One of those factors is compensation. It is true, of course, that years Executive Salaries in the business community have risen an more than money is involved in attracting and retaining men and average of 3.5% per year. The increase in the salary structure for women of the highest competence. Prestige, the challenge of public Federal officials since 1964, however, has been far less than 1% service, the opportunity to contribute to the solution of pressing per year. 4 5 than the comparability principle would have required for 1968, national and international problems all have their drawing power. and $5,422 less than the requirement for July 1, 1969. But they must be weighed, even by the dedicated, against the realities Based on the average increase in wages in this decade and of personal and family responsibilities. the great body of economic thought, the upward trend will con- There are many examples of distinguished service by men and tinue even though the rate of increase may be somewhat slowed women of independent wealth, but we cannot and must not rely on down. Looking ahead four years, the rate for the lowest Level of this as a means of filling the top ranks. Such a policy would deny the the Executive pay scale would have to be at least $40,000 to permit nation the service of many other great and gifted leaders. Nor is the top rates of the Career Service to achieve the comparability the answer to rely on those who can devote a brief absence from that Congress has declared to be the Federal pay policy, and to pro- private affairs. This, too, presents obvious disadvantages. vide an appropriate pay relationship between the Executive and To repeat here the conclusion emphasized in the introduction Career levels. to this report, present salary levels are not commensurate with the importance of top level positions or offices in Government. They are SALARY LEVELS IN OTHER SECTORS not sufficient to support a standard of living that individuals We turn now to significant information on salary levels and qualified for such posts can fairly expect to enjoy and in many in- trends in other sectors of the economy, both public and private. stances have established. We should expect the compensation given to 1. In State and Local Governments those to whom we entrust the powers of government to bear some reasonable relationship to that received by their peers in private From a salary point of view, numerous positions in State and life. Local Governments are equally or more attractive to individuals of the calibre sought for Federal posts. They offer similar professional RELATIONSHIPS BETWEEN TOP-LEVEL AND CAREER opportunities. They offer the chance to render a public service. They SERVICE COMPENSATION offer substantial prestige and as great or greater monetary rewards. Comprehensive studies of State and Local Government salaries made Another important consideration is the relationship of the by the U.S. Civil Service Commission in March 1963, January 1967, salaries for top-level positions to the General Pay Schedule for and August 1968 show in detail the situation in the upper salary career service employees. levels. The pay for the latter group, who constitute the vast majority It is significant that in the past year there has been a 70% of Federal employees, is fixed annually on the principle established increase in the number of those officials paid $35,000 or more. This in the Federal Salary Reform Act of 1962. This is that "Federal trend is a continuing one. In September judicial salaries in California salary rates shall be comparable with private enterprise salary rates were increased over 20%. The New York State Legislature, a few for the same levels of work." months ago, voted significant increases to the Governor and other An annual survey is made by the Bureau of Labor Statistics top State officials. of private enterprise rates. These are then examined by the Bureau The following summary shows the increases that have taken of the Budget and the Civil Service Commission and fitted to a place in the last five years in the number of positions paid at $35,000 comparability pay line. The pay line is established for the various and above. levels of the General Schedule salaries and reported annually to Con- 1963 1967 1968 gress. Governors 8 23 26 The Salary Act of 1967 provided that the President, by Ex- Mayors and City Managers 2 12 22 ecutive Order, would establish rates for the Career Service that Administrative and would achieve comparability in two stages. On July 1 of this year Professional 15 43 123 rates were increased by the amount necessary to move 50% of the Public Corporations 13 29 32 way toward comparability. Next July 1 they will be adjusted to Judges 7 212 328 achieve full comparability. The details of the 1968 report are attached as Appendix D. However, the principle of comparability has not been made fully The tabulations therein show the positions in summary and in detail effective in 1968 because of a restriction in the 1967 Act that no by occupation, jurisdiction, and salary. level in the General Schedule may exceed the rate provided for the Level V of the Executive pay scale, namely, $28,000. The result of 2. In Public Education this statutory provision is that the top two rates of pay in Grade These studies also reveal a rather spectacular climb in the GS-16, the top three rates in GS-17, and the single rate for GS-18 number of positions in the field of public education for which annual are all limited to the $28,000 ceiling. For GS-18 this is $2,239 less compensation of $35,000 or more is provided. 6 7 pendix E) Perhaps it is pertinent to point out that one of the industry 1963 1967 1968 groups included in the report was "Utilities." In the sales category of School Superintendents 3 10 25 $200 to $500 million, the average compensation of the Chief Execu- Public University Presi- tive Officers was $110,000. The Tennessee Valley Authority had dents, Officers, and power sales of $369 million in 1968. The compensation of its Chief Department Heads 11 60 178 Executive Officer, in contrast, was $28,750. The Bonneville Power Administration and Bureau of Reclamation fall into the class of By way of contrast, the Assistant Secretary for Education in $100 million to $200 million in sales, for which the average industry the Department of Health, Education, and Welfare, and the Com- salary is $87,000 for the Chief Executive. The salary of the Govern- missioner of Education, who exercise responsibilities that sweep ment Executives is $28,000. across the whole spectrum of educational problems, are compen- In June of this year Business Week published its annual com- sated at $28,750 and $28,000 respectively. putation of top Executive salaries in 130 large corporations in some 3. In Tax-Exempt Foundations 25 different fields. It shows that over 300 of those Executives are Tax-exempt foundations are another field which competes for compensated at the rate of $100,000 and above. The salaries of the the talent required by Government. The latest data available on top Executives of the four airlines listed were at least three times compensation for presidents of ten of the large tax-exempt foun- that of the Secretary of the Department of Transportation who has dations for the fiscal year 1965-66 show a salary range from $30,000 substantial responsibilities in the field of air transport. to $100,000, an increase of $4,000 over the 1964-65 average. These figures are not cited as the goal or the ideal Federal salary but are given to emphasize the problem with which the 4. In the Federal Reserve Banks Government is faced in seeking men of the competence and quality Another field of employment having some of the aspects of needed to insure success in vital programs. Some men, fortunately, public service and some of private enterprise is in the Federal are in a position to make the change. Others, however, feel they Reserve Banks. A recent report shows that the salaries of the cannot afford the financial sacrifice required. presidents of Federal Reserve Banks range from $35,000 to $75,000. (See Appendix H). It might be pointed out that in all but two THE PROBLEM OF COMPRESSION cases their salaries exceed those of the Chairman of the Federal Reserve Board and the Secretary of the Treasury, and in one case the One of the most serious inequities in the present salary structure bank salary more than doubles them. is the narrow differential between the various levels of pay, particu- larly in the Executive pay scale. There is an almost total failure to 5. In Private Industry recognize in terms of compensation the differences in duties and The differences between public service and private employment responsibilities between the levels of the Executive Schedule. make direct dollar-for-dollar comparisons between salary levels pre- The following table shows the levels of the Executive pay scale vailing in private business and those at the top strata of govern- as established in 1964 and at present, and the percentage differential ment difficult and inconclusive. There is no doubt, however, that as compared to the private industry average differential. salaries in the private sector offer a yardstick that individuals who are sought for top Government positions may use in measuring Salary as percentage of alternative opportunities, or in evaluating the financial aspect Chief Executive salary¹ Federal Executive Salary Schedule against the satisfaction of service to one's country and the challenge of the job, or perhaps the future benefits to one's career in business Average or in a profession. Private Industry % 1964 % Present % There is a good deal of information available on salaries in the private sector. One source is the National Industrial Conference Chief Executive 100 Level I $35,000 100 $35,000 100 Board study on annual compensation at the highest-paid corporation 2d highest paid 70 Level II 30,000 85.7 30,000 85.7 Executive levels in 1304 corporations for the year 1965. The study 3d highest paid 60 Level III 28,500 81.4 29,500 84.3 shows a range of median salaries, depending upon the type of busi- 4th highest paid 55 Level IV 27,000 77.1 28,750 82.1 ness, from $45,000 to $100,000. (See Appendix G) 5th highest paid 50 Level V 26,000 74.3 28,000 80 Again, the American Management Association study of Novem- ber 1967 on the average compensation rates of over 2,500 chief 1 Source: "Executive Compensation" executive officers, ranked according to the sales in varying industry Business Management. Jan. 1968 Table 6 groups, shows amounts ranging well into six figures. (See Ap- 8 9 327-824 O 68 3 The differential between Level V and Level II in 1964 was about RECOMMENDED SALARIES FOR TOP LEVEL OFFICIALS 11%, or roughly half the typical differential in private enterprise. IN THE EXECUTIVE BRANCH It is now only 5.7%. The increasingly small differentials between Levels II and V We have striven to meet these objectives in formulating our are partly due to upward adjustments necessary at the lower levels recommendations: to permit the top civil service grades to make some progress toward 1. To establish a compensation plan which will be logical and comparability. equitable in its internal and external relationships. Even so, it is now possible for the head of a major Bureau in 2. To establish compensation more nearly commensurate with Executive Level V and subordinates in the three upper civil service the importance and responsibilities of these positions. grades to receive identical compensation even though they are at 3. To establish levels that will increase the ability of the Fed- successive steps in a direct line of authority and responsibility. Ob- eral Government to attract and retain the highest possible viously, it is time for a change. talent. The following table sets forth the present and proposed rates for the 665 top officials of the Executive Branch. Present Proposed Salary Salary Number Rate Rate Level I-Heads of Departments 12 $35,000 $60,000 Level II-Heads of major agencies, etc. 64 30,000 50,000 Level III-Under Secretaries, etc. 88 29,500 46,000 Level IV-Assistant Secretaries, etc. 261 28,750 43,000 Level V-Heads of Bureaus, etc. 240 28,000 40,000 Annual cost of these proposed increases $9,631,250 These proposals recognize that the opportunity to serve one's country and the prestige of public office are a form of compensation. They further recognize that there is not the freedom to tailor com- pensation to particular individuals or circumstances. On the other hand, the proposals do recognize the very substantial responsibility of these positions, the high level of competence required, and the importance of making sure we continue to secure and retain men and women of top quality. To hold Federal compensation on a scale that is substantially lower than equivalent talent can command in other fields, public as well as private, is the road to mediocrity. 10 11 RECOMMENDED LEGISLATIVE SALARIES It is our feeling that Members' salaries should be adjusted to compensate for the substantial and unique responsibilities they In addition to the Members of Congress, nine other offices and bear, to meet the cost peculiar to elective rather than appointive positions in the Legislative Branch are within the scope of the office, and to minimize the need to rely on other means of augmenting Commission's study and review. These offices can be directly related income. There is a real question, however, as to whether the prob- to offices and positions in the Executive Branch, and on the basis of lem of adequately compensating the holder of elective office can be that comparison we have included them in the following recom- solved entirely by salary adjustment. The burdens placed on the mendations: individual legislator are not uniform. The type of his constituency, Present Proposed its geographical location, and its legislative interests affect him Salary Salary alone just as do his housing requirements and his business or pro- Number Rate Rate fessional interests. Later in this report we discuss some further steps Senators, Representatives, and the that should be considered. Resident Commissioner from Puerto Rico 531 $30,000 $50,000 Other offices in the Legislative Branch Comptroller General 1 30,000 50,000 Assistant Comptroller General 1 29,500 46,000 General Counsel, General Accounting Office 1 28,750 43,000 Librarian of Congress 1 28,750 43,000 Public Printer 1 28,750 43,000 Architect of the Capitol 1 28,750 43,000 Deputy Librarian of Congress 1 27,500 40,000 Deputy Public Printer 1 27,500 40,000 Assistant Architect of the Capitol 1 27,500 40,000 Annual cost of these proposed increases $10,751,000 It is difficult to obtain data that may suitably be used as a basis for comparison with Congressional salaries. The Senators and Representatives and the Resident Commissioner from Puerto Rico are in a class not directly comparable with any other group. State Legislators in most cases play a vastly different role from that of a Member of Congress. This is true with respect to the time devoted to the position, the variety and complexity of the problems covered, and the number of citizens to whom they are responsible. Unlike the circumstances in the Executive area of government and in private industry, there are no varying levels of responsibility among the Members, at least with respect to the enactment of legislation-their major task. The vote of the newest Congressman counts exactly the same as that of a long-time member. Perhaps the experienced legislator serving as a committee chairman has a more arduous task and performs at a greater level of effectiveness, but his basic responsibilities to his constituents are the same. There may be material differences in service rendered but these cannot be ex- pressed in terms of compensation. Other factors bearing on the compensation of Members of Con- gress include the necessity of running for office every two years or six years, and the cost of living in Washington for most of the year while maintaining a residence in home district or State. 12 13 RECOMMENDED JUDICIAL SALARIES In determining appropriate salary rates for the Judiciary, we must rely on the traditional values that have been attached to the The table following sets forth the recommended salaries for work of the courts. To attempt to find valid comparisons on the Justices, Judges, and other officers of the Judicial Branch, totaling basis of tasks performed between those who formulate the laws, 842. those who interpret them, and those who execute them would be a Present Proposed fruitless task. Salary Salary Traditionally, there has been high prestige value attached to Number 1 Rate Rate Federal judgeships, and, particularly, to membership on the Supreme Chief Justice of the United States 1 $40,000 $67,500 Court. There is the factor of the added value of lifetime tenure. Associate Justices, Supreme Court 10 39,500 65,000 These may be sufficient inducements to many who have made their Judges, Circuit Court of Appeals 134 33,000 50,000 mark in other fields of legal endeavor. But will they remain SO if Judges, Court of Claims 9 33,000 50,000 there is not some recognition of present-day trends in compensation? Judges, Court of Military Appeals 3 33,000 50,000 One area with which we may make some comparison comprises Judges, Court of Customs and the State and Local judicial systems. There we find that some 1,150 Patent Appeals 6 33,000 50,000 Judges are paid at the same rate as Judges in Federal District Courts, Judges, District Courts 407 30,000 47,500 that more than 300 are paid more than the Judges of the Appellate Judges, Customs Court 13 30,000 47,500 Courts, and that 35 are paid at rates that equal or slightly exceed Judges, Tax Court of the United States 22 30,000 47,500 Justices of the Supreme Court of the United States. Director, Administrative Office of The Act creating this Commission also provides for review the United States Courts 1 30,000 47,500 and recommendations as to the salaries of the Commissioners of Deputy Director, Administrative Office the Court of Claims, Referees in Bankruptcy, and the Director and of the United States Courts 1 28,000 40,000 Deputy Director of the Administrative Office of the United States Commissioners, Court of Claims 15 29,000 40,000 Courts. Referees in Bankruptcy The Commissioners of the Court of Claims act as trial Judges (full-time maximum)³ 180 22,500 40,000 for the Court. After proceedings before them are completed, the Referees in Bankruptcy Commissioners prepare findings of fact and conclusions of law (part-time maximum)³ 40 11,000 20,000 which are then submitted to the parties and the Court. If there is no Annual cost of these proposed increases $14,305,500 appeal by the parties to the case, the Court, after review, will nor- mally adopt the Commissioner's decision as its own. 1 Includes Senior Justices and Judges The Referees in Bankruptcy recommend decisions on both law 2 One at $30,500 and facts to the Judge of the District Court, who then renders the 3 Salary for Referees set by Judicial Conference within the maximum Court's decision. Certain aspects of bankruptcy cases are, by statute, We have recommended that the compensation of the Justices reserved to the District Judge. At present the Judicial Conference of the Supreme Court be fixed at $65,000, a rate which reflects the sets the salary rate within the maximum established by law. importance and dignity of the office. As the role of the Federal Government has expanded, the burden on the Judicial system has grown and its sphere of influence has broadened to embrace an increasing percentage of our citizens. This is particularly true of the Court, which is the capstone of our legal system. Yet in the past forty years the rate of increase in the compensation of its members has lagged far behind that of the other groups we have reviewed. We have established a differential of $2,500 between the salary of the Chief Justice and the Associate Justices that more truly reflects the relative responsibilities than does the $500 which was first set in 1789. We believe the rates for Judges of the other courts result in an equitable compensation for their responsibilities and are in line with the recommendations for Legislative and Executive salaries. 14 15 SUPPLEMENTARY COMPENSATION IN CONCLUSION In the first draft of the 1967 Salary Act, there was a provision The Commission urges that immediate action be taken at the that the Commission on Salaries should also study the kinds and next session of Congress to establish new salary rates for the office amounts of expenses and allowances for Federal Executives, Judges, of Vice President, Speaker of the House of Representatives, and the and Members of Congress. However, this was eliminated before final Majority and Minority Leaders of both Houses of Congress. passage. Although such factors are not part of the study, they cannot Had these offices been within our purview, we would have be ignored in arriving at an understanding of the comparative com- recommended no less than a salary equivalent to that of the Chief pensation of Executives in industry and in government. Justice ($67,500) for the Vice President and the Speaker, and main- A salary study is not really valid if compensation in addition tenance of the present differential ($5,000) between the Majority to salary is ignored. If housing is furnished, or an expense allowance and Minority Leaders and the other Members of the Senate and provided, or bonuses and stock options are offered in lieu of, or in House of Representatives. addition to, salary, the monetary value of the job may be greatly Finally, we point out that the Presidential salary has remained altered. In many instances, such benefits provided by the employer unchanged since 1949, a period of nearly 20 years. There is no com- might greatly influence a person to accept or to reject a position. pelling reason to exempt this salary from evaluation and revision in The nature and extent of supplementary benefits may vary the light of present day values and standards of compensation other considerably according to the characteristics of positions held. Thus than that the position is unique in the true sense of the word. We a Judge retired from active service at full salary may still from time recognize that evaluating the Presidential responsibilities in terms to time perform services of the same character as are performed by of remuneration just cannot be done. Nevertheless, we urge you, active Judges. Accordingly, the Government's contribution to his re- Mr. President, to bring this matter to the attention of the Congress tirement is quite different from the contribution it makes toward at the earliest possible moment. We believe that to preserve equity the retirement of a Member of Congress who is elected for a term, or and balance in the pay structure of Government the salary of the an official of the Executive Branch whose position is subject to President should be changed from $100,000 to $200,000. change as political control changes. The opportunities open to Government officials to acquire sup- plementary income through the practice of a profession or by engaging in private business vary according to the Branch in which they serve. Each Branch makes its own rules and applies its own standards. This Commission has made no attempt to evaluate supplemen- tary payments or allowances to determine their exact effect on total compensation. It is aware that there are inequities needing correction, but it is not part of the Commission's task to make recommendations concerning them. We also recognize that adjust- ments of salaries are not the appropriate way to meet the expenses attachd to public office any more than they are to meet business expenses in private enterprise. These expenses, while job-related, are not uniform in their application to the holders of positions in the same class, nor are they uniform as between classes. The Commission feels that existing laws and regulations should be reviewed to determine whether present supplementary compensa- tion, such as expenses, allowances, retirement income, insurance, etc., are adequate or inadequate, equitable or discriminatory, or well- or ill-suited to the purpose for which they were designed. If there are deficiencies, they should be remedied promptly through changes in legislation or regulations. 16 17 327-824 68 4 APPENDIX A Legislative provisions establishing the Commission on Executive, Legislative, and Judicial Salaries, and a method of setting the rates of such salaries Public Law 90-206 (81 STAT. 642) Approved December 16, 1967 COMMISSION ON EXECUTIVE, LEGISLATIVE, AND JUDICIAL SALARIES SEC. 225. (a) ESTABLISHMENT OF COMMISSION.-There is hereby established a commission to be known as the Commis- sion on Executive, Legislative, and Judicial Salaries (herein- after referred to as the "Commission"). (b) MEMBERSHIP.- (1) The Commission shall be composed of nine members who shall be appointed from private life, as follows: (A) three appointed by the President of the United States, one of whom shall be designated as Chairman by the President; (B) two appointed by the President of the Senate; (C) two appointed by the Speaker of the House of Rep- resentatives; and (D) two appointed by the Chief Justice of the United States. (2) The terms of office of persons first appointed as members Terms of of the Commission shall be for the period of the 1969 fiscal office. year of the Federal Government, except that, if any appoint- ment to membership on the Commission is made after the be- ginning and before the close of such fiscal year, the term of office based on such appointment shall be for the remainder of such fiscal year. (3) After the close of the 1969 fiscal year of the Federal Government, persons shall be appointed as members of the Commission with respect to every fourth fiscal year following the 1969 fiscal year. The terms of office of persons SO appointed shall be for the period of the fiscal year with respect to which the appointment is made, except that, if any appointment is made after the beginning and before the close of any such fiscal year, the term of office based on such appointment shall be for the remainder of such fiscal year. (4) A vacancy in the membership of the Commission shall be filled in the manner in which the original appointment was made. (5) Each member of the Commission shall be paid at the Compensation; rate of $100 for each day such member is engaged upon the travel expenses. work of the Commission and shall be allowed travel expenses, including a per diem allowance, in accordance with section 5703 (b) of title 5, United States Code, when engaged in the performance of services for the Commission. 80 Stat. 499. (c) PERSONNEL OF COMMISSION.- (1) Without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and the provisions of chapter 51 and subchapter III of chapter 53 80 Stat. 443, of such title, relating to classification and General Schedule pay 467; Ante, p. 625. rates, and on a temporary basis for periods covering all or part of any fiscal year referred to in subsection (b) (2) and (3) of this section- 19 Pub. Law 90-206 December 16, 1967 Pub. Law 90-206 December 16, 1967 81 Stat. 647. 81 STAT. 646. (h) RECOMMENDATIONS OF THE PRESIDENT WITH RESPECT TO PAY.-The President shall include, in the budget next trans- (A) the Commission is authorized to appoint an Execu- mitted by him to the Congress after the date of the submission tive Director and fix his basic pay at the rate provided for of the report and recommendations of the Commission under level V of the Executive Schedule by section 5316 of title subsection (g) of this section, his recommendations with re- 5, United States Code; and spect to the exact rates of pay which he deems advisable, for Ante, p. 638. (B) with the approval of the Commission, the Executive those offices and positions within the purview of subparagraphs Director is authorized to appoint and fix the basic pay (at (A), (B), (C), and (D) of subsection (f) of this section. As respective rates not in excess of the maximum rate of the used in this subsection, the term "budget" means the budget "Budget." General Schedule in section 5332 of title 5, United States referred to in section 201 of the Budget and Accounting Act, Code) of such additional personnel as may be necessary 1921, as amended (31 U.S.C. 11). 64 Stat. 832; 72 Stat. 852. to carry out the function of the Commission. (i) EFFECTIVE DATE OF RECOMMENDATIONS OF THE PRESI- (2) Upon the request of the Commission, the head of any DENT.- Personnel detail. department, agency, or establishment of any branch of the (1) Except as provided in paragraph (2) of this subsection, Federal Government is authorized to detail, on a reimbursable all or part (as the case may be) of the recommendations of the basis, for periods covering all or part of any fiscal year re- President transmitted to the Congress in the budget under ferred to in subsection (b) (2) and (3) of this section, any of subsection (h) of this section shall become effective at the be- the personnel of such department, agency, or establishment to ginning of the first pay period which begins after the thirtieth assist the Commission in carrying out its function. day following the transmittal of such recommendations in the (d) USE OF UNITED STATES MAILS BY COMMISSION.-The budget; but only to the extent that, between the date of trans- Commission may use the United States mails in the same mittal of such recommendations in the budget and the beginning manner and upon the same conditions as other departments and of such first pay period- agencies of the United States. (A) there has not been enacted into law a statute which (e) ADMINISTRATIVE SUPPORT SERVICES.-The Administrator establishes rates of pay other than those proposed by all of General Services shall provide administrative support serv- or part of such recommendations, ices for the Commission on a reimbursable basis. (B) neither House of the Congress has enacted legisla- (f) FUNCTION.-The Commission shall conduct, in each of tion which specifically disapproves all or part of such rec- the respective fiscal years referred to in subsection (b) (2) ommendations, or and (3) of this section, a review of the rates of pay of- (C) both. (A) Senators, Members of the House of Representatives, (2) Any part of the recommendations of the President may, and the Resident Commissioner from Puerto Rico; in accordance with express provisions of such recommendations, (B) offices and positions in the legislative branch re- be made operative on a date later than the date on which such ferred to in subsections (a), (b), (c), and (d) of section recommendations otherwise are to take effect. 203 of the Federal Legislative Salary Act of 1964 (78 Stat. (j) EFFECT OF RECOMMENDATIONS OF THE PRESIDENT ON 415; Public Law 88-426) ; EXISTING LAW AND PRIOR PRESIDENTIAL RECOMMENDATIONS.- (C) justices, judges, and other personnel in the judicial The recommendations of the President transmitted to the Con- branch referred to in sections 402 (d) and 403 of the Fed- gress immediately following a review conducted by the Com- eral Judicial Salary Act of 1964 (78 Stat. 434; Public Law mission in one of the fiscal years referred to in subsection (b) 88-426) and (2) and (3) of this section shall be held and considered to (D) offices and positions under the Executive Schedule modify, supersede, or render inapplicable, as the case may be, in subchapter II of chapter 53 of title 5, United States to the extent inconsistent therewith— Code. (A) all provisions of law enacted prior to the effective 80 Stat. 460; Such review by the Commission shall be made for the purpose date or dates of all or part (as the case may be) of such Ante, p. 638. of determining and providing- recommendations (other than any provision of law enacted (i) the appropriate pay levels and relationships between in the period specified in paragraph (1) of subsection (i) and among the respective offices and positions covered by of this section with respect to such recommendations), and such review, and (B) any prior recommendations of the President which (ii) the appropriate pay relationships between such take effect under this section. offices and positions and the offices and positions subject to (k) PUBLICATION OF RECOMMENDATIONS OF THE PRESIDENT. Publication in the provisions of chapter 51 and subchapter III of chapter -The recommendations of the President which take effect shall Federal Register. 53 of title 5, United States Code, relating to classification be printed in the Statutes at Large in the same volume as pub- and General Schedule pay rates. lic laws and shall be printed in the Federal Fegister and 80 Stat. 443, 467; Ante, p. 625. (g) REPORT BY COMMISSION TO THE PRESIDENT.-The Com- included in the Code of Federal Regulations. mission shall submit to the President a report of the results of each review conducted by the Commission of the offices and positions within the purview of subparagraphs (A), (B), (C), and (D) of subsection (f) of this section, together with its recommendations. Each such report shall be submitted on such date as the President may designate but not later than January 1 next following the close of the fiscal year in which the review is conducted by the Commission. 21 20 Appendix B EXTENT OF COMMISSION'S JURISDICTION (Opinion furnished by the General Counsel of the U.S. Civil Service Commission) QUESTION: Does the jurisdiction of the Commission on Executive, Legislative, and Judicial Salaries (CELJS) extend to the compensa- tion of the Vice President, the Speaker of the House of Representa- tives, and the Majority and Minority leaders of both Houses? ANSWER: No. DISCUSSION: The review authority of the CELJS is set out in §225 (f) of Public Law 90-206. That subsection authorizes the CELJS to review the rates of pay of: (A) Senators, Members of the House of Representatives, and the Resident Commissioner from Puerto Rico; (B) offices and positions in the legislative branch referred to in subsections (a), (b), (c), and (d) of section 203 of the Federal Legislative Salary Act of 1964 (78 Stat. 415; Public Law 88-426) (C) justices, judges, and other personnel in the judicial branch referred to in sections 402(d) and 403 of the Federal Judicial Salary Act of 1964 (78 Stat. 434; Public Law 88-426) and (D) offices and positions under the Executive Schedule in sub- chapter II of chapter 53 of title 5, United States Code. Subparagraphs (C) and (D) of §225(f) are clearly inapplicable as (C) relates only to the judicial branch and as (D) relates only to the Executive Schedule which contains no reference to the offices under consideration. Subparagraph (A), which refers specifically to the rates of pay of "Senators" and "Members of the House of Representatives" cannot be considered to extend to the rates of pay of the Vice President, the Speaker of the House of Representatives, and the Majority and Minority Leaders. This is SO because the rate of pay for each of these offices is expressly fixed by a statutory authority that is sep- arate from the statutory authority that fixes the rate of pay for Senators and Members of Congress. The $30,000 annual rate for Senators and Members of Congress is fixed by the first sentence of section 601 (a) of the Legislative Re- organization Act of 1946, as amended by §11(e) of Public Law 89-301, 2 U.S.C. 31. The $43,000 annual rate for the Speaker of the House of Representatives is fixed by the second sentence of that section (2 U.S.C. 31). The $35,000 annual rate for the Majority and Minority Leaders is fixed by the last sentence of that section (2 U.S.C. 31). The $43,000 annual rate for the Vice President is 23 fixed by section 104 of title 3, United States Code. Finally, whatever Appendix C may be said of the functions of the Vice President as presiding officer of the Senate, he is not nominated nor elected as, nor is he POSITIONS IN LEVELS I THROUGH V OF THE EXECUTIVE designated to be, a Senator. SCHEDULE 1 OR AUTHORIZED TO BE PAID AT In view of the foregoing, it is evident that the express mention of COMPARABLE SALARY RATES the rates of pay for Senators and Members of the House of Repre- OCTOBER 25, 1968 sentatives in paragraph (A) of §225(f) does not include the rates Level I of pay for the Vice President, the Speaker of the House of Repre- $35,000 sentatives, and the Majority and Minority Leaders. 5 U.S.C. 5312: It is significant to note that when the Congress created a former (1) Secretary of State Commission on Judicial and Congressional Salaries in 1953 (Public (2) Secretary of the Treasury Law 83-220, 67 Stat. 485) it expressly directed that Commission (3) Secretary of Defense to determine appropriate rates of salaries for, among others, "the (4) Attorney General Vice President, the Speaker of the House of Representatives, and (5) Postmaster General Members of Congress". Also in that legislation, the Congress re- (6) Secretary of the Interior ferred to "the presiding officers and Members of the Congress". (7) Secretary of Agriculture Thus it is evident that the Congress, from its experience with the (8) Secretary of Commerce earlier enactment, was aware of how to express an intention to (9) Secretary of Labor review the salaries of legislative branch officers other than Members (10) Secretary of Health, Education, and Welfare of the Congress. The omission of similar language in Public Law (11) Secretary of Housing and Urban Development 90-206 is even more significant under these circumstances. (12) Secretary of Transportation Finally, with respect to subparagraph (B) of §225(f) (the offices Level II and positions in the legislative branch referred to in §203(a)-(d) $30,000 of the Federal Legslative Salary Act of 1964) a study of that section 5 U.S.C. 5313: establishes that it does not refer to any of the offices with which (1) Deputy Secretary of Defense we are concerned. That section specifically refers to the Comptroller (2) Under Secretary of State General, the Assistant Comptroller General, the General Counsel of (3) Administrator, Agency for International Development the General Accounting Office, the Librarian and Deputy Librarian (4) Administrator of the National Aeronautics and Space Ad- of Congress, the Public Printer and his Deputy, and the Architect ministration of the Capitol and his Assistant. (5) Administrator of Veterans' Affairs (6) The importance of the CELJS limiting its review to the offices and (Repealed) positions referred to in $225(f) (A)-(D) of Public Law 90-206 is (7) Under Secretary of Transportation made clear by $225(h) of that statute. Section 225(h) relates to the (8) Chairman, Atomic Energy Commission President's recommendations to the Congress after his receipt of (9) Chairman, Council of Economic Advisers the report from the CELJS. It specifically states that the Presi- (10) Chairman, Board of Governors of the Federal Reserve System dent's recommendations shall relate to "those officers and positions (11) Director of the Bureau of the Budget within the purview of subparagraphs (A), (B), (C), and (D) of (12) Director of the Office of Science and Technology subsection (f) of this section." (13) Director of the United States Arms Control and Disarmament Agency (14) Director of the United States Information Agency (15) Director of Central Intelligence (16) Secretary of the Air Force (17) Secretary of the Army (18) Secretary of the Navy (19) Administrator, Federal Aviation Administration (19) Director of the National Science Foundation 1 Numbering corresponds to that in title 5, United States Code. 24 25 327-824 O 68 5 Level II $30,000 (cont'd) Level III $29,500 (cont'd) Other positions which may be paid at rate for level II: 5 U.S.C. 5314: Director, Office of Economic Opportunity (29) Chairman, Railroad Retirement Board Civilian executive secretary, National Council on Marine Resources (30) Chairman, Federal Maritime Commission and Engineering Development (31) Comptroller of the Currency Director of the Federal Bureau of Investigation (32) Commissioner of Internal Revenue 17 Presidential assistants including the Executive Secretary of the (33) Director of Defense Research and Engineering, Department National Security Council, the Executive Secretary of the Na- of Defense tional Aeronautics and Space Council, and the Executive Secre- (34) Deputy Administrator of the National Aeronautics and Space tary of the Economic Opportunity Council Administration 2 specially qualified scientific, professional, or administrative em- (35) Deputy Director of the Bureau of the Budget ployees in the Public Health Service (36) Deputy Director of Central Intelligence (37) Director of the Office of Emergency Preparedness Chiefs of mission, Class 1 (23) (38) Director of the Peace Corps (39) Chief Medical Director in the Department of Medicine and Level III $29,500 Surgery of the Veterans' Administration 5 U.S.C. 5314: (40) Deputy Director, National Science Foundation (41) (1) Deputy Attorney General (Repealed) (2) Solicitor General of the United States (42) President of the Export-Import Bank of Washington (3) Deputy Postmaster General (43) Members, Atomic Energy Commission (4) (4) Under Secretary of Agriculture (44) Members, Board of Governors of the Federal Reserve System (6) (5) Under Secretary of Commerce (45) (Superseded) (6) (Repealed) (7) Under Secretary of Health, Education, and Welfare (46) Administrator, Federal Highway Administration (8) Under Secretary of the Interior (47) Administrator, Federal Railroad Administration (9) Under Secretary of Labor (48) Chairman, National Transportation Safety Board (10) Under Secretary of State for Political Affairs or Under (49) Chairman of the National Endowment for the Arts the in- Secretary of State for Economic Affairs cumbent of which also serves as Chairman of the National Council on the Arts (11) Under Secretary of the Treasury (12) Under Secretary of the Treasury for Monetary Affairs (50) Chairman of the National Endowment for the Humanities (13) Administrator of General Services (51) Director of the Federal Mediation and Conciliation Service (14) Administrator of the Small Business Administration (52) Under Secretary of Housing and Urban Development (53) Urban Mass Transportation Administrator (15) Deputy Administrator of Veterans' Affairs (16) Deputy Administrator, Agency for International Development Other positions which may be paid at rate for level III: (17) Chairman, Civil Aeronautics Board (18) Chairman of the United States Civil Service Commission Deputy Director, Office of Economic Opportunity Chairman, Administrative Conference of the United States (19) Chairman, Federal Communications Commission (20) Chairman, Board of Directors, Federal Deposit Insurance Director of Selective Service (present incumbent) Corporation Associate Director of the Federal Bureau of Investigation (present incumbent) (21) Chairman of the Federal Home Loan Bank Board (22) Chairman, Federal Power Commission Chiefs of mission, class 2 (28) (23) Chairman, Federal Trade Commission (24) Chairman, Interstate Commerce Commission Level IV $28,750 (25) Chairman, National Labor Relations Board (26) Chairman, Securities and Exchange Commission 5 U.S.C. 5315: (27) Chairman, Board of Directors of the Tennessee Valley (1) Administrator, Bureau of Security and Consular Affairs, Authority Department of State (28) Chairman, National Mediation Board (2) (Repealed) 26 27 Level IV Level IV $28,750 (cont'd) $28,750 (cont'd) 5 U.S.C. 5315: 5 U.S.C. 5315: (3) Deputy Administrator of General Services (43) Solicitor of the Department of Labor (4) Associate Administrator of the National Aeronautics and (44) General Counsel of the National Labor Relations Board Space Administration (45) General Counsel of the Post Office Department (5) Assistant Administrators, Agency for International Develop- (46) Counselor of the Department of State ment (6) (47) Legal Adviser of the Department of State (6) Regional Assistant Administrators, Agency for Interna- (48) General Counsel of the Department of the Treasury tional Development (4) (49) First Vice President of the Export-Import Bank of Wash- (7) Under Secretary of the Air Force ington (8) Under Secretary of the Army (50) General Manager of the Atomic Energy Commission (9) Under Secretary of the Navy (51) Governor of the Farm Credit Administration (10) Deputy Under Secretaries of State (2) (52) Inspector General, Foreign Assistance (11) Assistant Secretaries of Agriculture (3) (53) Deputy Inspector General, Foreign Assistance (12) Assistant Secretaries of Commerce (5) (54) Members, Civil Aeronautics Board (4) (13) Assistant Secretaries of Defense (7) (55) Members, Council of Economic Advisers (2) (14) Assistant Secretaries of the Air Force (4) (56) Members, Board of Directors of the Export-Import Bank of (15) Assistant Secretaries of the Army (4) Washington (3) (16) Assistant Secretaries of the Navy (4) (57) Members, Federal Communications Commission (6) (17) Assistant Secretaries of Health, Education, and Welfare (5) (58) Member, Board of Directors of the Federal Deposit Insurance (18) Assistant Secretaries of the Interior (5) Corporation (1) (19) Assistant Attorneys General (9) (59) Members, Federal Home Loan Bank Board (2) (20) Assistant Secretaries of Labor (4) (60) Members, Federal Power Commission (4) (21) Assistant Postmasters General (6) (61) Members, Federal Trade Commission (4) (22) Assistant Secretaries of State (11) (62) Members, Interstate Commerce Commission (10) (23) Assistant Secretaries of the Treasury (4) (63) Members, National Labor Relations Board (4) (24) Chairman of the United States Tariff Commission (64) Members, Securities and Exchange Commission (4) (25) (Repealed) (65) Members, Board of Directors of the Tennessee Valley Author- (26) (Repealed) ity (2) (27) (Repealed) (66) Members, United States Civil Service Commission (2) (28) (Repealed) (67) Members, Federal Maritime Commission (4) (29) Director of Civil Defense, Department of the Army (68) Members, National Mediation Board (2) (30) (Repealed) (31) Deputy Chief Medical Director in the Department of Medicine (69) Members, Railroad Retirement Board (2) (70) Director of Selective Service and Surgery of the Veterans' Administration (32) Deputy Director of the Office of Emergency Preparedness (71) Associate Director of the Federal Bureau of Investigation (33) Deputy Director of the Office of Science and Technology (72) Chairman, Equal Employment Opportunity Commission (34) Deputy Director of the Peace Corps (73) Chief of Protocol, Department of State (35) Deputy Director of the United States Arms Control and Dis- (74) Director, Bureau of Intelligence and Research, Department of armament Agency State (36) Deputy Director of the United States Information Agency (75) Director, Community Relations Service (37) Assistant Directors of the Bureau of the Budget (3) (76) United States Attorney for the District of Columbia (38) General Counsel of the Department of Agriculture (77) United States Attorney for the Southern District of New York (39) General Counsel of the Department of Commerce (78) Members, National Transportation Safety Board (4) (40) General Counsel of the Department of Defense (79) General Counsel, Department of Transportation (41) General Counsel of the Department of Health, Education, (80) Deputy Administrator, Federal Aviation Administration and Welfare (81) Assistant Secretaries of Transportation (4) (42) Solictor of the Department of the Interior (82) Director of Public Roads 28 29 Level IV $28,750 (cont'd) Level V $28,000 (cont'd) 5 U.S.C. 5315: 5 U.S.C. 5316: (83) Administrator, Saint Lawrence Seaway Development Cor- (2) Administrator, Agricultural Research Service, Department of poration Agriculture (84) Assistant Secretary for Science, Smithsonian Institution (3) Administrator, Agricultural Stabilization and Conservation (85) Assistant Secretary for History and Art, Smithsonian Institu- Service, Department of Agriculture tion (4) Administrator, Farmers Home Administration (86) Deputy Administrator, Small Business Administration (87) Assistant Secretaries of Housing and Urban Development (6) (5) Administrator, Agriculture Foreign Agricultural Service, Department of (88) General Counsel of the Department of Housing and Urban (6) Administrator, Rural Electrification Administration, Depart- Development ment of Agriculture (89) Commissioner of Interama, Commerce (7) Administrator, Soil Conservation Service, Department of (90) Administrator of Law Enforcement Assistance, Department Agriculture of Justice (8) Administrator, Bonneville Power Administration, Department (91) Federal Insurance Administrator, Department of Housing and of the Interior Urban Development (9) (Repealed) Positions placed in level IV by Presidential action under 5 U.S.C. (10) (Repealed) 5317: (11) Associate Administrators of the Small Business Administra- Special Assistant to the Secretary (for Enforcement), Treasury tion (3) Department (12) (Repealed) Principal Deputy Director of Defense Research and Engineering, (13) (Repealed) Department of Defense (14) (Repealed) Administrator, Social and Rehabilitation Service, Department of (15) Associate Administrator for Advanced Research and Tech- Health, Education, and Welfare nology, National Aeronautics and Space Administration Administrator, National Institutes of Health, Department of Health, (16) Associate Administrator for Space Science and Applications, Education, and Welfare National Aeronautics and Space Administration Assistant Director for Executive Management, Bureau of the Budget, (17) Associate Administrator for Manned Space Flight, National Executive Office of the President Aeronautics and Space Administration Deputy Administrator, Federal Highway Administration, Depart- (18) Associate Deputy Administrator, National Aeronautics and ment of Transportation Space Administration Director, Office of Foreign Direct Investments, Department of Com- (19) Deputy Associate Administrator, National Aeronautics and merce Space Administration Administrator, Health Services and Mental Health Administration, (20) Associate Deputy Administrator of Veterans' Affairs Department of Health, Education, and Welfare (21) Archivist of the United States Executive Director, Cabinet Committee on Price Stability (22) (Repealed) Other positions which may be paid at rate for level IV: (23) Assistant Secretary of Agriculture for Administration Assistant Directors (5), Office of Economic Opportunity (24) Assistant Secretary of Health, Education, and Welfare for Administration Federal Cochairman, Appalachian Regional Commission Each regional cochairman of an economic development regional (25) Assistant Secretary of the Interior for Administration commission (now 5) (26) Assistant Attorney General for Administration (27) Assistant Secretary of Labor for Administration Chiefs of mission, class 3 (34) Career ambassadors (2) (28) Assistant Secretary of the Treasury for Administration (29) Assistant General Manager, Atomic Energy Commission Level V $28,000 (30) Assistant and Science Adviser to the Secretary of the Interior 5 U.S.C. 5316: (31) Chairman, Foreign Claims Settlement Commission of the United States (1) Administrator, Agricultural Marketing Service, Department (32) Chairman of the Military Liaison Committee to the Atomic of Agriculture Energy Commission, Department of Defense 30 31 Level V $28,000 (cont'd) Level V $28,000 (cont'd) 5 U.S.C. 5316: 5 U.S.C. 5316: (33) Chairman of the Renegotiation Board (34) Chairman of the Subversive Activities Control Board (64) Deputy Under Secretary for Monetary Affairs, Department of the Treasury (35) Chief Counsel for the Internal Revenue Service, Department (65) Deputy Commissioner of Internal Revenue, Department of of the Treasury the Treasury (36) Chief Forester of the Forest Service, Department of Agricul- (66) Assistant Directors, National Science Foundation (4) ture (67) Deputy Director, Policy and Plans, United States Informa- (37) Chief Postal Inspector, Post Office Department tion Agency (38) (Repealed) (68) Deputy General Counsel, Department of Defense (39) Commissioner of Customs, Department of the Treasury (40) Commissioner, Federal Supply Service, General Services Ad- (69) Deputy General Manager, Atomic Energy Commission (70) Associate Director of the Federal Mediation and Conciliation ministration Service (41) Commissioner of Education, Department of Health, Educa- (71) Associate Director for Volunteers, Peace Corps tion, and Welfare (42) Commissioner of Fish and Wildlife, Department of the Inte- (72) Associate Director for Program Development and Opera- tions, Peace Corps rior (73) Assistants to the Director of the Federal Bureau of Investi- (43) Commissioner of Food and Drugs, Department of Health, gation, Department of Justice (2) Education, and Welfare (44) Commissioner of Immigration and Naturalization, Depart- (74) Assistant Directors, Office of Emergency Preparedness (3) (75) Assistant Directors, United States Arms Control and Dis- ment of Justice armament Agency (4) (45) Commissioner of Indian Affairs, Department of the Interior (76) (Repealed) (46) (Repealed) (47) Commissioners, Indian Claims Commission (5) (77) Fiscal Assistant Secretary of the Treasury (48) Commissioner of Patents, Department of Commerce (78) General Counsel of the Agency for International Development (49) Commissioner, Public Buildings Service, General Services (79) General Counsel of the Department of the Air Force Administration (80) General Counsel of the Department of the Army (50) Commissioner of Reclamation, Department of the Interior (81) General Counsel of the Atomic Energy Commission (51) Commissioner of Social Security, Department of Health, Edu- (82) (Repealed) cation, and Welfare (83) (Repealed) (52) Commissioner of Vocational Rehabilitation, Department of (84) General Counsel of the Department of the Navy Health, Education, and Welfare (85) General Counsel of the United States Arms Control and Dis- (53) Commissioner of Welfare, Department of Health, Education, armament Agency and Welfare (86) General Counsel of the National Aeronautics and Space Ad- (54) Director, Advanced Research Projects Agency, Department ministration of Defense (87) Governor of the Canal Zone (55) Director of Agricultural Economics, Department of Agri- (88) Manpower Administrator, Department of Labor culture (89) Maritime Administrator, Department of Commerce (56) Director, Bureau of the Census, Department of Commerce (90) Members, Foreign Claims Settlement Commission of the (57) Director, Bureau of Mines, Department of the Interior United States (2) (58) Director, Bureau of Prisons, Department of Justice (91) Members, Renegotiation Board (4) (59) Director, Geological Survey, Department of the Interior (92) Members, Subversive Activities Control Board (4) (60) Director, Research and Development, Post Office Department (93) Members, United States Tariff Commission (5) (61) Director, National Bureau of Standards, Department of (94) (Repealed) Commerce (95) (Repealed) (62) Director of Regulation, Atomic Energy Commission (63) Director of Science and Education, Department of Agri- (96) Deputy Directors of Defense Research and Engineering, De- partment of Defense (4) culture (97) Assistant Administrator of General Services 32 33 327-824 68 6 Level V $28,000 (cont'd) Level V $28,000 (cont'd) Positions placed in level V by Presidential action under 5 U.S.C. 5 U.S.C. 5316: 5317: (98) Director, United States Travel Service, Department of Com- Commissioner on Aging, Department of Health, Education, and merce Welfare (99) Executive Director of the United States Civil Service Com- Principal Deputy Assistant Secretary of Defense (International Se- mission curity Affairs), Department of Defense (100) Administrator, Wage and Hour and Public Contracts Divi- Comptroller, Department of Health, Education, and Welfare sion, Department of Labor Director, Bureau of Outdoor Recreation, Department of the Interior (101) Assistant Director (Program Planning, Analysis and Re- Assistant to the Secretary of Defense (Legislative Affairs) search), Office of Economic Opportunity Deputy Director of Defense Research and Engineering, Department (102) Assistant General Managers, Atomic Energy Commission (2) of Defense (103) Associate Director (Policy and Plans), United States Infor- Principal Deputy Assistant Secretary of Defense (Comptroller), mation Agency Department of Defense (104) Chief Benefits Director, Veterans' Administration Commissioner, Federal Water Pollution Control Administration, (105) Commissioner of Labor Statistics, Department of Labor Department of Interior (106) Deputy Director, National Security Agency Director, Urban Transportation Administration, Department of (107) Director, Bureau of Land Management, Department of the Housing and Urban Development Interior Director, Demonstration Cities Administration, Department of (108) Director, National Park Service, Department of the Interior Housing and Urban Development (109) Director of International Scientific Affairs, Department of Deputy Commissioner of Social Security, Department of Health, State Education, and Welfare (110) General Counsel of the Veterans' Administration Commissioner, Property Management and Disposal Service, General (111) Members, Equal Employment Opportunity Commission (4) Services Administration (112) National Export Expansion Coordinator, Department of Com- Deputy Under Secretary, Department of Transportation Deputy Assistant Secretary for Mortgage Credit, Department of merce (113) Special Assistant to the Secretary of Defense Housing and Urban Development (114) Staff Director, Commission on Civil Rights Deputy Administrator, Social and Rehabilitation Service, Depart- (115) United States Attorney for the Northern District of Illinois ment of Health, Education, and Welfare (116) United States Attorney for the Southern District of Cali- Chief, Children's Bureau, Social and Rehabilitation Service, Depart- ment of Health, Education, and Welfare fornia Director, United States Secret Service, Treasury Department (117) Assistant Secretary of Transportation for Administration Special Assistant for Regional Economic Coordination, Department (118) Director, United States National Museum, Smithsonian In- of Commerce stitution Assistant to the Deputy Secretary of Defense (119) Director, Smithsonian Astrophysical Observatory, Smithson- Deputy Assistant Secretary of Defense for Reserve Affairs ian Institution (120) Administrator for Economic Development Other positions which may be paid at rate for level V: (121) Administrator of the Environmental Science Services Ad- 7 positions in the Department of Housing and Urban Development ministration Commissioner for a Federal exhibit at Hemisfair 1968 (122) Assistant Secretary of Housing and Urban Development for Executive Director, Advisory Commission on Intergovernmental Administration Relations (123) Director, Construction Engineering, Post Office Department Executive Director, Commission on Executive, Legislative, and (124) Director, National Highway Safety Bureau Judicial Salaries (125) Director, National Traffic Safety Bureau Chiefs of mission, class 4 (36) (126) Associate Administrators of Law Enforcement Assistance, Career ministers (26) Department of Justice (2) (127) Director, Bureau of Narcotics and Dangerous Drugs, Depart- ment of Justice 35 34 Appendix D 37 TOTALS 121 50 192 101 587 70 1,158 2,316 PAY RATES OF $30,000 OR MORE IN STATE AND LOCAL GOVERNMENT This study by the United States Civil Service Commission sets forth the compensation rates in effect September 1, 1968, for 2,316 positions in state and local government. $30,000- 34,999 11 99 28 124 75 409 38 830 1,581 Tabulations which follow do not include all state and local gov- ernment positions paying $30,000 or more. For example, only a few localities of less than 350,000 population are covered and there are, no doubt, school superintendents and city managers paid $30,000 or more in other localities in the lower population brackets. Hence, the term "Partial" appears on each tabulation. STATE AND LOCAL GOVERNMENT POSITIONS WITH PAY OF $30,000 OR MORE* $35,000- 39,999 11 45 17 54 21 140 12 V 293 593 Table I summarizes the positions by Occupation and Pay Bracket, Table II summarizes them by State and Occupation, and Table III lists them in detail by Occupation, Jurisdiction, and Salary under the following categories: A. Governors SUMMARIZED BY OCCUPATION AND PAY BRACKET** Partial Tabulation, September 1, 1968 $40,000- 49,999 5 4 4 12 4 31 18 35 B. State Administrative and Professional Positions 113 C. Mayors, City and County Managers D. City and County Administrative and Professional Positions E. Superintendents and Other Public School Officers F. Presidents, Officers, Faculty Members, etc., of Public Edu- TABLE I $50,000- 59,999 3 9 1 I 1 7 1 I 19 cational Institutions G. Public Corporation Positions H. Judiciary $60,000 and above 4 I I 2 I I 1 I 10 - y State Administrative and Professional Mayors, City and County Managers City and County Administrative and *Value of quarters and/or allowances, as reported or estimated, has been added to salary to determine total pay. (See Table III for details.) **A few positions have pay ranges; where the salary is reported by range in Table III, the position is included here at the ceiling rate of the range. Governors Professional Superintendents and Other Public School Officers Presidents, Officers, Faculty, etc., of Educational Institutions Public Corporations Totals Judges 36 37 TABLE II STATE AND LOCAL GOVERNMENT POSITIONS WITH PAY OF $30,000 OR MORE* SUMMARIZED BY STATE AND OCCUPATION Partial Tabulation, September 1, 1968 State Governors State Adminis- Mayors, City and School Super- Presidents, Public Judiciary Total trative and City and County Ad- intendents and Officers, Corpora- Professional County ministrative other Public Faculty Mem- tion Positions Managers and Profes- School Officers bers etc., Positions sional Posi- of Public tions Educational Institutions Alabama 1 1 - - - 18 - - 20 Alaska 1 - - - - 1 - - 2 Arizona - - - - - 3 - - 3 Arkansas - - - - - - - - - 38 California 1 3 18 63 43 62 11 441 642 Colorado - - - - 1 2 -- - 3 Connecticut 1 - - - - 2 - 2 5 Delaware - 1 - - - - - - 1 Florida 1 7 2 1 2 20 - 5 38 Georgia 1 9 1 - 1 5 - - 17 Hawaii 1 - 1 - - 1 - - 3 Idaho 1 - - - - 1 - - 2 Illinois 1 3 1 6 2 42 - 28 83 Indiana 1 2 - - - 30 3 - 36 Iowa 1 - - - - 4 - - 5 Kansas - - - - - 2 - - 2 Kentucky 1 - - - - 24 - - 25 Louisiana 1 4 1 2 - 41 - - 49 Maine 1 - - - - - - - 1 Maryland 1 - 1 3 1 1 1 - 8 Massachusetts 1 3 1 2 1 2 1 1 12 TABLE II (CONTD) Michigan 1 25 1 7 1 15 - 61 111 Minnesota 1 - - 9 2 13 - - 25 Mississippi 1 1 - - - - - - 2 Missouri 1 2 1 3 - 3 - - 10 Montana 1 - - - - - - - 1 Nebraska - - - - 1 4 - - 5 Nevada 1 - - - - 4 - - 5 New Hampshire 1 - I - - 1 - I 2 New Jersey 1 2 2 3 1 10 - 223 242 New Mexico - - - - - - - - - New York 1 39 8 74 29 85 51 235 522 North Carolina 1 1 1 - I 9 - - 12 North Dakota I 1 - - - 1 - - 1 Ohio 1 - 2 1 5 21 - - 30 39 Oklahoma 1 I - I - 3 - I 4 Oregon 1 - - - 1 14 - - 16 Pennsylvania 1 7 1 13 2 - 3 162 189 Rhode Island - - - - - 2 - - 2 South Carolina 1 - - - - - - - 1 South Dakota - 1 - - - 1 - - 2 Tennessee 1 I 1 - 1 1 - - 4 Texas 1 5 3 4 3 33 - - 49 Utah - - - - I 2 - - 2 Vermont - - - - - 2 - I 2 Virginia 1 - 2 - 2 53 - - 58 Washington 1 1 I - 1 27 - - 30 West Virginia 1 - - - - 1 - - 2 Wisconsin 1 3 2 1 1 22 - - 30 Wyoming - - - - - - - - - Total 37 121 50 192 101 587 70 1158 2,316 *Value of quarters and/or allowances, as reported or estimated, has been added to salary to determine total pay. (See Table III for details.) TABLE III TABLE III-A. (CONTD) State Salary Other Compensation STATE AND LOCAL GOVERNMENT POSITIONS WITH PAY OF $30,000 New Mexico - OR MORE, BY OCCUPATION, JURISDICTION, AND SALARY New York Partial Tabulation, September 1, 1968 $50,000 (Value of quarters and/or allowances, as reported or estimated, has been added North Carolina 25,000 Mansion, servants, unlimited travel, and a con- to salary to determine total pay.) tingency fund for "expenses of State"* North Dakota - TABLE III-A. Governors Ohio 40,000 State Salary Other Compensation Oklahoma 25,000 House and utilities $10,200 Alabama $25,000 Mansion fund $35,000 and other allowances Oregon 25,080 $7,200-miscellaneous expenses Alaska 27,500 Mansion $6,000; staff $13,000; entertainment Pennsylvania 45,000 $4,000; car $750 Rhode Island - $30,000 salary effective Jan. 1, 1969 Arizona - South Carolina 25,000 Mansion, etc., appropriation $48,300 Arkansas - South Dakota - California 44,100 Undetermined* Tennessee 25,000 Mansion fund $18,500, travel, and other unde- Colorado - termined expenses Connecticut 35,000 Texas 40,000 Mansion fund, expenses $20,000 Delaware - Utah - Florida 36,000 Mansion fund $29,820; undetermined travel and Vermont - other expenses Virginia 30,000 Use of home, car, airplane, etc.* Georgia 42,500 Mansion fund $35,000; travel and other unde- termined expenses Washington 32,500 Mansion $16,000, maintenance $12,000 Hawaii 33,500 $20,000 estimated West Virginia 30,000 Mansion, car* Idaho Wisconsin 17,500 $11,162.50 mansion fund; car and miscellaneous 25,000 Use of home and car* $1,500 Wyoming - Illinois 30,000 Mansion; use of auto and airplane; $45,000 salary in January 1969 Indiana 25,000 Housing, personal staff, transportation, and $6,000 for other expenses Iowa 25,000 Housing, travel and subsistence estimated at $5,600; salary rounded to nearest dollar Kansas - Kentucky 30,000 Louisiana 30,000 Mansion, maintenance, car, etc., $50,000+ Maine 20,000 $15,000 personal expenses Maryland 25,000 Expenses in excess of $5,000-ceiling not avail- able* Massachusetts 35,000 Michigan 40,000 Minnesota 22,500 Personal expense allowance; house and car $17,500 Mississippi 25,000 Undetermined allowances* Missouri 25,000 House, utilities, two cars, chauffeur (aggregat- ing estimated $5,000) ; salary of $35,000 effec- tive January 1969 Montana 22,000 $16,240 mansion fund, car $700 Nebraska - Nevada 25,000 House, host fund plus cook and houseboy, car and maintenance service* New Hampshire 30,000 New Jersey 35,000 *Executive mansion and/or other expenses, if a value is not specifically stated, are assumed to *See footnote at end of this table. have a value of at least $5,000. 40 41 TABLE III-B. State Administrative and Professional Positions TABLE III-B. (CONTD) State Position Salary State Position Salary Alabama Commissioner, Department of Mental Michigan (contd) Director, Psychiatric Institute Health $30,000¹ (Lafayette Clinic) $39,004 California Attorney General 32,000 Program Directors (Mental Health) (2) 35,350 each Director of Finance 31,835 Superintendent, Department of Public Director of Coordinating Council for Instruction 33,500 Higher Education 34,000 Director, Department of Mental Health 39,500 Delaware Director, Department of Public Health 33,500 Commissioner of Mental Health 35,000 Director, State Highway Department 31,000 Florida Director, Inter-American Trade Ex- Treasurer of Michigan 31,000 position 50,000 Director of Budget (Executive Office) 31,000 Superintendent of Education 34,000 Medical Superintendents (14) 30,985 each Secretary of State 34,000 Secretary of Agriculture 34,000 Mississippi Director, Research and Development Comptroller Center 34,000 30,000 Treasurer 34,000 Missouri Superintendent, Mental Hospital 28,000' Attorney General 34,000 Associate Director, Division of Mental Georgia Attorney General 30,000 Diseases 31,000 Department of Public Health: New Jersey Commissioner of Community Affairs 30,000 Director 33,348 Commissioner of Education 30,000 Deputy Director 24,984-33,348 Superintendent, Mental Health In- New York Lieutenant Governor 30,000 8 stitute 30,252 Comptroller 45,000 9 Director, Mental Health Division 24,984-33,348 Attorney General 45,000° Assistant Director, Mental Health Comptroller (Dept. of Audit Division 22,668-30,252 and Control) 45,000° Director, Medical Division 22,668-30,252 Director of Atomic and Space Superintendent, Mental Health Hos- Development 33,500 pital 22,668-30,252³ Commissioners and equivalent Assistant Superintendent, Mental positions (10) 32,000 each10 Health Hospital 20,556-27,540³ Director of Veterans' Affairs 29,50010 Illinois Chairman, Workmen's Compensation Secretary of State Board 29,50010 Auditor of Public Accounts Attorney General Attorney General (Dept. of Law) 45,000° Superintendent of Public Instruction Commissioners and equivalent 30,000 positions (20) 35,500 each 10 State Treasurer 30,000 Commissioner of Mental Hygiene 38,000¹⁰ State Highway Engineer, Dept. of Pub- North Carolina Commissioner of Mental Health 30,000 lic Works and Bldgs. 30,000 Indiana Commissioner of Mental Health 35,000 North Dakota Superintendent, North Dakota Superintendent of Muscatutuck State Hospital 32,50011 State Hospital 30,396 Pennsylvania Lieutenant Governor 32,500 Louisiana Anesthetist, Charity Hospital, Superintendent, Public Instruction 30,000 New Orleans 27,500 Executive Director, Port Authority, Program Director, Dept. of Hospitals, Allegheny County 40,000 Baton Rouge, Louisiana 35,000 Auditor General 32,500 Confederate Memorial Center, State Treasurer 32,500 Shreveport: Commissioner of Mental Health 30,000 Radiologist 35,000 Executive Deputy Secretary, Depart- Assistant Radiologist 33,000 ment of Public Welfare 30,000 Massachusetts Commissioner of Education 30,000 South Dakota Superintendent, Yankton State Hospital 26,000¹³ Executive Director, Massachusetts Port Authority 36,000 Texas Manager, Dallas Transit Authority 31,000 Commissioner of Mental Health 32,500 Commissioner, Mental Health and Retardation 26,00014 Michigan Attorney General 30,000 Commissioner, Board of Higher Secretary of State 30,000 Education 26,00015 See footnotes at end of this table. See footnotes at end of this table. 42 43 TABLE III-B. (CONTD) TABLE III-C. Mayors, City and County Managers State Position Salary State and Texas (contd) Director, Texas State Department of Jurisdiction Position Salary Correction $26,000 16 California Director, Texas Research Institute of Oakland 25,000¹⁷ City Manager $35,000 Mental Sciences Long Beach City Manager 37,000 1 Washington Director, Department of Institutions 31,000 Los Angeles Mayor 35,000 2 Riverside Wisconsin Secretary, Dept. of Health and Social Manager 31,164 Services 33,656 San Diego City Manager 35,208 San Jose Administrator, Division of Mental City Manager 30,048-36,516 San Francisco Hygiene 32,600 State Health Officer 31,856 (City & County) Mayor 38,365 County of Alameda Administrator 36,000 Contra Costa Co. Administrator 31,500 1 Quarters furnished County of San Bernardino Administrative Officer 2 Top of salary range which begins at $29,664 31,942 3 Plus quarters and utilities County of Santa Barbara Administrative Officer 22,488-31,440 4 Salary of $30,000 effective January 1, 1969 County of Santa Clara County Executive 31,200-37,934 5 Housing and subsistence County of Ventura 6 Car County Executive 30,996 7 Plus $2,000 additional County of Los Angeles Chief Admin. Officer 31,104-38,520 8 Plus $20,000 for expenses County of San Diego Chief Admin. Officer 35,208 9 Plus $7,000 in lieu of expenses County of San Mateo County Manager 10 Plus $3,000 in lieu of expenses 37,128 11 House furnished Orange County Administrative Officer 36,000 13 Plus $5,000 maintenance Riverside County Administrative Officer 31,164 14 Plus Hogg Foundation Supplement of $15,000 15 Plus $17,500 from foundation Florida 16 Plus house, food, yardman, maid service, and car Miami City Manager 29,849 3 17 Plus $11,000 supplement from Baylor University Dade County County Manager 32,500 Consolidated Government of Duval County and City of Jacksonville Mayor - 4 Georgia Atlanta Mayor 30,000 5 Hawaii City and County of Honolulu Mayor 30,000 6 Illinois Chicago Mayor 35,000 2 Louisiana New Orleans Mayor 25,000 7 Maryland Baltimore Mayor 25,000 8 Massachusetts Boston Mayor 40,000 Michigan Detroit Mayor 35,000 9 Missouri Kansas City City Manager 32,500 New Jersey Newark Mayor 35,000 Jersey City Mayor 30,000 New York New York City Mayor 50,000 Deputy Mayors (2) 37,500 each See footnotes at end of this table. 44 45 TABLE III-C. (CONTD) TABLE III-D. City and County Administrative and Professional Positions State and State and Jurisdiction Position Salary Jurisdiction Position Salary California New York (contd) Oakland Rochester City Manager 33,000 Executive Director, Chief Engineer, Port of Oakland Erie County County Executive 32,500 $30,600 Monroe County County Executive 33,200 Long Beach City Attorney 34,051 1 Nassau County County Executive 30,000 Los Angeles City Attorney 32,000 2 Westchester County County Executive 40,950 Administrative Officer 37,500 8 North Carolina Chief of Police 32,820 2 Charlotte City Manager 30,000 Chief Engineer, Fire Depart- ment Ohio 32,820 8 Cincinnati City Engineer City Manager 40,000 31,104 2 Columbus Mayor Supt. of Building 30,000 31,104 2 Director of Planning 31,104 2 Pennsylvania Department of Water and Philadelphia Mayor 40,000 Power: Tennessee Gen. Manager and Chief Metro. Nashville Engineer 46,000 (Davidson Co.) Mayor 27,500 10 Asst. General Manager 43,000 Asst. Manager and Chief Texas Electrical Engineer 41,183 Austin City Manager 29,500 11 Asst. Manager and Chief Dallas City Manager 30,000 12 Engineer, Water Works 41,000 San Antonio City Manager 27,500 13 Chief Engineer, Water Virginia Works 41,000 Norfolk City Manager 33,500 Chief Asst. City Attorney 41,000 Richmond City Manager 30,500 Assistant to the General Manager Wisconsin 38,500 Asst. Chief Engineer, Water Milwaukee Mayor 30,270 14 Works 36,000 Milwaukee County County Executive 30,000 Asst. Chief, Electrical Engineer 36,000 1 Expenses and car, civil service benefits Auditor, Water and 2 Car and driver Power 3 Plus $2,500 expense allowance 36,000 4 Salary of $30,000 effective Oct. 1, 1968 Director Industrial 5 Car and actual travel expenses Relations 36,000 6 Plus estimated $7,000 Airports Department: 7 Plus $5,000 contingency fund 8 Plus $12,000 expense account General Manager 44,000 9 Plus quarters First Deputy General 10 Plus travel and other allowances-estimated at $2,500 Manager 11 Plus car 37,500 12 Plus car and parking budget request being drafted, salary expected to increase Harbor Department: 13 Plus $5,000 expenses General Manager 41,000 14 Plus expense allowance-value undetermined First Deputy General Manager 33,000 Second Deputy General Manager 33,000 Chief Harbor Engineer 33,000 San Diego City Attorney 33,528 Alameda Co. Medical Director 31,018 Los Angeles Co. Director of Hospitals 25,484-36,416 Chief Medical Examiner- Coroner 25,008-30,104 County Assessor 36,516 District Attorney 36,516 See footnotes at end of this table. 46 47 TABLE III-D. (CONTD) TABLE III-D. (CONTD) State and State and Jurisdiction Position Salary Jurisdiction Position Salary California (contd) Massachusetts Los Angeles Co. (contd) Sheriff $36,516 Boston Commissioner of Health and County Counsel 25,484-36,416 Hospitals $35,000 Probation Officer 25,704-31,944 Director, Boston Redevelop- Board of Supervisors (5) 30,572 each ment Authority 35,000 Orange Co. County Counsel 34,000 Maryland Chief Engineer, Flood Control 32,820 Baltimore Director of Finance 30,750 Health Officer 33,696 City Solicitor 30,000 Medical Center Administrator 32,820 Director of Public Works 30,000 Medical Director 32,820 Michigan Road Commissioner and County Wayne County Public Health Director, City- Surveyor 32,820 County 33,170 San Diego Co. Director of Medical Institutions 33,528 Community Mental Health Director of Public Health 33,528 Director 32,100 County Engineer 30,408 County Medical Examiner 30,670 San Mateo Co. Director of Health and Welfare 33,204 General Superintendent, Wayne Santa Clara Co. Director, Public Health Co. General Hospital 30,531 30,670 Director, Medical Institutions Managing Director-Roads 33,651 30,000 Detroit Health Commissioner 31,000 San Francisco General Manager, Public Police Commissioner 30,000 (City and County) Utilities 30,708-37,332 Minnesota Chief Administrative Officer 30,708-37,332 Henepin County Controller 29,964-36,420 Budget & Purchasing Director Deputy for Development 29,964-36,420 General Hospital 23,712-33,360 Chiefs of Medical Specialties Executive Director, Redevelop- ment Agency (7), General Hospital 35,556 24,900-33,360 each Hospital Director Director of Public Health 26,532-32,244 22,584-31,176 Secretary and Asst. General Missouri Manager, Administrator, St. Louis Co. Hospital Commissioner 22,500-28,700 5 Public Utilities 25,884-31,464 Kansas City Director, Health Department 30,000 Chief Assistant Controller 25,884-31,464 St. Louis Hospital Commissioner 25,000 6 Director, Systems and Data New Jersey Processing 25,884-31,464 Assessor Bergen Co. 31,821 Superintendent of Bergen General Manager and Chief Pines County Hospital 38,000 Engineer, Water Depart- Jersey City Executive Director, Jersey City ment 25,260-30,708 Medical Center 33,000 Newark Executive Director, Newark Florida Housing Authority 35,629 Dade County County Attorney 32,500 New York Illinois Nassau Co. Commissioner of Health 33,000 Chicago General Superintendent, Superintendent, Meadowbrook Sanitary District 37,500 Hospital 34,000 Commissioner of Planning and Director of Anesthesiology 32,000 Development 30,000 Director of Clinical Laboratory 32,000 Chairman and Commissioner of Director of Psychiatry 32,000 Urban Renewal 30,000 Director of Obstetrics and Superintendent of Police 30,000 Gynecology 32,000 Fire Commissioner 30,000 Director of Radiology 32,000 Corporation Counsel 30,000 Director of Pediatrics 32,000 Director of Internal Medicine 32,000 Louisiana Chief of Surgery 32,000 Orleans Parish Attorney to assist the Inherit- Consultant for Physical Medicine ance Tax Collector 80,000 (fees) 4 and Rehabilitation 32,000 New Orleans Director, Port of New Orleans 30,000 See footnotes at end of this table. See footnotes at end of this table. 48 49 TABLE III-D. (CONTD) TABLE III-D. (CONTD) State and State and Jurisdiction Position Salary Jurisdiction Position Salary New York (contd) New York (contd) Westchester Co. Budget Director $31,980 New York City Deputy Administrator $31,500 County Attorney 31,980 (contd) Administrator, Economic District Attorney 31,980 Development 35,000 Commissioner of Hospitals 31,980 Director, Mental Health Commissioner of Health 31,980 Board 30,000 Commissioner of Public Works 31,980 Director, Educational Liaison 30,000 Commissioner of Social Director, Lower Manhattan Services 31,980 Development 30,000 Director, Community Mental Personnel Director 30,000 Health Board 31,980 Ohio New York City Assistants to Mayor (2) 30,000 each Cincinnati Administrative Officer-Board of Director of Budget 40,000 Hamilton Co. Commissioners 30,000 Comptroller 40,000 Pennsylvania Deputy Comptroller 35,000 Philadelphia Director of Finance 34,000 Director of Finance 35,000 City Representative and President, City Council 35,000 Director of Commerce 34,000 Human Resources Adminis- City Solicitor 34,000 trator 40,000 City Controller 31,500 First Deputy Human Re- District Attorney 31,500 sources Administrator 35,000 Managing Director 34,000 Deputy Human Resources Water Commissioner 31,500 Administrators (2) 32,500 each Deputy Health Commissioner Borough Presidents (5) 35,000 each Community Health Service 27,960-31,734 Corporation Counsel 35,000 Medical Examiner 29,218-31,734 District Attorneys (4) 37,000 each Philadelphia General Hospital: Chairman, Office of Collective Chief Radiologist 37,000 Bargaining 35,000 Radiation Therapist 33,000 Metropolitan Transit Authority: Nuclear Medicine Chairman of the Board 70,000 Radiologist 33,000 Executive Officers (4) 35,000 each Chief Anesthesiologist 34,000 General Counsel 32,500 Chairman, Housing Authority 35,000 Texas Administrator, Housing and Dallas City Attorney 28,500 7 Development 35,000 Houston Executive Director, Navigation Deputy Administrators (2) 30,000 each District 36,000 3 Commissioners of: Harris Co. Chief Medical Examiner 30,500 3 Manpower and Career San Antonio General Manager, San Antonio Development 35,000 Public Service Board 40,000 8 Parks 35,000 Police 35,000 Wisconsin Community Development 32,500 Milwaukee Co. Director, Milwaukee Co. Public Works 32,500 Institutions 30,167 9 Welfare 32,500 Fire 30,000 1 Plus expenses and car, civil service benefits Investigation 30,000 2 Car and driver 3 Car Sanitation 30,000 4 Plus miscellaneous expenses Traffic 30,000 5 Plus $10,000 maintenance Chairman, City Planning 6 Plus $5,000 (includes house, utilities, and car) Commission 32,500 7 Plus car and parking; budget request being drafted, salary expected to increase 8 Plus expenses Health Services Administrator 37,500 9 Plus use of home Commissioners, Health Services (2) 35,000 each Assistant Commissioners (2) 30,000 each Administrator, Environmental Protection 35,000 50 51 TABLE III-E. School Superintendents and Other Public School Officers TABLE III-E. (CONTD) State and State and Jurisdiction Position Salary Jurisdiction Position Salary California Maryland Baltimore Long Beach Superintendent of Schools $35,000 Superintendent of Public Instruc- tion $50,000 Los Angeles Co. Superintendent of Schools 30,560 Massachusetts Los Angeles City School Board: Boston Superintendent of Schools 35,000 5 Superintendent of Schools 49,000 1 Michigan Deputy Superintendents of Detroit Superintendent, Board of Educa- Schools (2) 38,000 each 1 tion 35,000 Associate Superintendents of Minnesota Schools (6) 36,242 each 1 Anoka Superintendent of Schools 32,000 Assistant Superintendents of Minneapolis Superintendent of Schools 30,537 each 1 35,000 Schools (20) Nebraska Assistant Superintendent of Schools (colleges) 31,477 1 Omaha School Superintendent 30,500 Business Manager 36,516 1 New Jersey Controller 32,820 1 Newark Superintendent of Schools 30,000 Buildings and Grounds Services New York Administrator 31,104 1 Buffalo Superintendent of Schools 32,000 Business Services Adminis- New York City Superintendent of Schools 46,500 trator 31,104 1 Executive Deputy Superintendent Oakland Superintendent, Oakland City of Schools 35,250 Schools 30,000 Deputy Superintendents of San Bernardino Superintendent of Schools 32,500 Schools (5) 31,500 each Assistant Superintendents of Schools San Diego Superintendent of Schools, San or equivalent (20) 30,000 each Diego Unified School Rochester Superintendent of Schools 35,000 District 45,000 Associate Superintendent Ohio (Services to Schools), San Cincinnati Superintendent, Cincinnati Public Diego Unified School District 31,252 Schools System 30,000 Superintendent of Schools, Cleveland Superintendent of Schools 39,500 Sweetwater Union High School Columbus Superintendent of Schools 30,900 District 30,500 Shaker Heights Superintendent of Schools 31,315 City and County Toledo Superintendent of Schools 30,300 of San Francisco Superintendent of Schools 35,000 Oregon San Jose Superintendent of Schools 30,000 Portland Superintendent, Portland Public Colorado Schools, Multnomah County City and County District # 1 30,000 of Denver Superintendent, Denver Public Schools 32,500 2 Pennsylvania Philadelphia Superintendent of Public Schools 36,000 Florida Pittsburgh Superintendent of Public Schools 36,720 Brevard Co. Superintendent, Board of Public Instruction 28,900 3 Tennessee Dade Co. Superintendent, Board of Public Davidson County and Instruction 33,000 City of Nashville Metropolitan Director of Schools 30,000 6 Texas Georgia 4 Dallas Dekalb Co. (Metro. Superintendent of Schools 28,752 Superintendent, Dallas Independent School District Atlanta Area) 37,500 Houston Superintendent, Houston Inde- Illinois pendent School District 30,000 2 Chicago Superintendent of Schools 48,500 Attorney, Chicago Board of Educa- San Antonio Sunerintendent. San Antonio tion 30,000 Independent School District 32,000 See footnotes at end of this table. See footnotes at end of this table. 52 53 TABLE III-E. (CONTD) TABLE III-F. Public University Presidents, Officers, and Faculty Members State and State and Jurisdiction Position Salary Jurisdiction Position Salary Arizona University of Arizona: Virginia Norfolk $32,500 7 President Superintendent of Schools $36,000 1 Richmond Superintendent of Schools 35,000 8 Dean, College of Medicine 30,000 Washington President, Arizona Seattle Superintendent, Seattle Public State University 32,900 1 Schools 30,000 Alabama President, University Wisconsin of Alabama 35,000 2 Milwaukee Superintendent, Milwaukee Public Schools 31,000 University of Alabama School of Medicine 1 Board car-Los Angeles City School Board salaries are listed at top of a three step range-18 (Birmingham) : Administrator 50,000 months to maximum step 2 Plus car Department Chairmen 3 Car, travel, and other expenses (15) 30,000-35,000 each 4 Car, actual travel and other expenses 5 Salary of $35,000 effective September 1, 1968 President, Auburn 6 Plus actual travel expenses University 30,000 2 7 Plus $360 expenses 8 Plus use of car Alaska President, University of Alaska 29,700 3 California University of California: President 45,000 Vice President 42,500 Vice President for Administration 37,000 Vice President, Business and Finance 32,500 General Counsel for the Regents 39,500 Treasurer of the Regents 39,000 Chancellor at Berkeley 42,000 Chancellor at Los Angeles 37,500 Chancellors, various campuses (3) 37,000 each Chancellors, various campuses (2) 35,000 each Chancellors, various campuses (2) 32,000 each 4 Chancellor, San Francisco Campus 32,500 Nobel Laureates (12) 33,600 each Professors (4) 31,100 each Dean, Hastings College of Law 32,600 School of Medicine: Dean, Davis Campus 37,500 Dean, Los Angeles Campus 38,500 Dean, San Francisco Campus 32,000 Dean, San Diego Campus 32,500 See footnotes at end of this table. 55 54 TABLE III-F. (CONTD) TABLE III-F. (CONTD) State and State and Jurisdiction Position Jurisdiction Position Salary Salary Idaho California (contd) State Colleges: President, University Chancellor $42,098 of Idaho $26,500 12 Executive Vice Illinois University of Illinois: Chancellor 27,288-34,836 President (Urbana) 50,000 13 Vice Chancellor, Busi- Chancellor 35,500 14 ness Affairs 27,288-34,836 Provost 39,500 Vice Chancellor, Vice President Academic Affairs 27,288-34,836 (Comptroller) 39,500 Assistant Chancellor, Legal Counsel 31,500 Faculty and Staff Vice President 35,500 Affairs 27,288-34,836 Director of Physical Presidents (19) 27,288-33,180 each Plant 32,500 President, San Bernar- Vice Chancellor San Bernardino 34,500 dino Valley Junior Deans of Colleges: College 28,250 70 (4) 30,000 each (2) 30,500 each Colorado President, University (1) 31,000 of Colorado 31,500 5 (1) 32,000 President, Colorado (1) 32,500 State University 30,000 6 Professors: Connecticut President, University (2) 30,000 each of Connecticut 34,960 7 (1) 31,250 Director, Commission (1) 31,500 for Higher Edu- (1) 34,000 cation 32,730 University of Illinois, Florida President, Florida Chicago Medical School: State University 28,250 8 Chancellor 35,500 15 Professorships, Florida Medical Director 34,000 State University Dean 34,000 (9) 30,000 each Professors: President, University (1) 30,200 of Florida 30,000 8 (1) 30,400 Professorships, (1) 30,600 University (1) 34,000 of Florida (7) 30,000 each (2) 35,000 each President, University (1) 35,500 of South Florida 27,000 8 (1) 36,000 President, Miami-Dade (1) 39,500 Dade County Junior College 32,500 University of Illinois, Chicago Circle Campus: Georgia Chancellor, Board of Chancellor 35,500 15 Regents 39,000 67 State Universities: Vice Chancellor, Board President, Northern of Regents 31,000 9 Illinois University 36,000 President, University President, Illinois State of Georgia 27,000 10 University at President, Medical Normal 33,600 College of President, Western Georgia 33,000 10 Illinois University 36,000 President, Georgia President, Eastern Institute of Tech- Illinois University 36,000 nology 31,000 10 President, Illinois Hawaii President, University Teachers College of Hawaii 32,905 11 (North) 32,400 See footnotes at end of this table. See footnotes at end of this table. 57 56 TABLE III-F. (CONTD) TABLE III-F. (CONTD) State and State and Jurisdiction Position Salary Jurisdiction Position Salary Illinois (contd) Kansas Chancellor, University State Universities (contd) President, Illinois of Kansas $35,000 Teachers College President, Kansas (South) $32,400 State University 33,000 President, Southern President, Wichita Illinois University 36,000 14 State University 19 - Kentucky University of Kentucky: Indiana Indiana University: President 68 - President 45,000 16 Executive Vice Presi- Vice President 32,000 dent 32,500 Chairman of School 37,992 Vice President, Medical Professor and Chair- Center 34,000 man 33,250 Vice President, Dean 32,496 Business Affairs 32,500 Chairman of School 32,000 Assistant Vice Presi- Unclassified 30,996 dent, Medical Center 31,500 Professor 30,290 Dean, College of Professor 30,000 Medicine 36,500 Dean 30,000 Medical Professors and Ball State University: Department Chairmen President 36,000 16 (1) 36,500 Indiana State University: (4) 35,000 each President 31,992 16 (2) 34,000 each (1) 33,000 Purdue University: Medical Professors: President 43,500 16 (1) $33,000 Vice President and (2) 32,000 each Treasurer 37,000 (1) 31,000 Staff Adminis- President, Murray trators (5) 32,000 each State University 32,000 Distinguished President, Morehead Professors (2) 36,000 each State University 33,000 Distinguished Pro- President, Western fessor 34,500 Kentucky State Vice President and University 30,000 Dean of Graduate President, Eastern School 32,000 Kentucky State Staff Administrator 37,875 University 30,000 Professors (2) 30,000 each University of Louisville Office Staff Admin- (Municipal) : istrators (2) 30,000 each Professor, Department Head Professor 30,000 of Radiology 36,000 Distinguished Pro- Assistant Professor, fessor 30,000 Department of Radiology 34,800 Iowa President, Iowa State Assistant Professor University, Ames 31,250 17 of Medicine 35,000 President, State Univer- Louisiana Louisiana State University sity of Iowa, Iowa System: City 31,250 18 President 35,000 20 Vice President, Univer- Louisiana State University- sity of Iowa 32,500 Baton Rouge: Dean, College of Medi- Chancellor 28,500 21 cine, University of Executive Vice Iowa 34,000 President 29,175 22 See footnotes at end of this table. See footnotes at end of this table. 58 59 TABLE III-F. (CONTD) TABLE III-F. (CONTD) State and State and Jurisdiction Position Salary Jurisdiction Position Salary Louisiana (contd) Vice President for Louisiana (contd) President, Southern Louisiana State University Academic Affairs $27,500 22 University System-- -Baton Rouge (contd) Dean, School of Law 27,800 22 Baton Rouge $25,000 26 Academic Professors (7) 27,000-29,500 each 12 Maryland President, University of Maryland 35,000 Louisiana State University- Shreveport: Massachusetts President, University Director, Medical of Massachusetts 30,000 27 School 32,000 Chancellor, Board of Medical School-Louisiana Higher Education 30,000 State University at New Michigan Michigan State University: Orleans: President 38,000 Director 33,500 22 Vice President (Direc- Assistant to the tor of Student Director 27,500 22 Health) 30,000 Louisiana State University Vice President Medical School: (Provost) 34,000 Chancellor 28,000 23 Vice President (Business Dean 30,000 24 Administration) 37,000 Head, Pathological University of Michigan: Department 30,000 President 49,000 Louisiana State University Vice President (Busi- at New Orleans: ness and Finance) 40,000 Vice President Chancellor 32,000 25 (Executive) 39,500 Medical School-Louisiana Vice President State University at New (Academic) 39,000 Orleans: Vice President (Re- Academic Professors search) 33,000 (13) 28,050-33,300 each 22 Vice President (Student Other Colleges: Affairs) 30,000 President, Francis T. Vice President (Univer- Nichols College, sity Relations) 31,000 Thibodaux 25,000 26 Wayne State University: President, Grambling President 40,000 College, Grambling 25,000 26 Vice President President, Louisiana (Executive) 33,000 Tech.-Rustin 25,000 26 Vice President (Re- President, McNeese search) 30,000 State College, Lake Vice President (Uni- Charles 25,000 26 versity Relations) 30,000 President, Northeastern Minnesota Chancellor, State Louisiana State College Board 32,500 College, Monroe 25,000 26 University of Minnesota: President, Northwestern President 42,000 28 State College, Vice President for Natchitoches 25,000 26 Business Affairs 33,250 President, South- Vice President for east Louisiana Academic Administra- State College, Ham- tion 33,000 mon 25,000 26 Vice President for President, University of Educational Relation- Southwestern Louisiana, ships and Develop- Lafayette 25,000 26 ment 33,000 See footnotes at end of this table. See footnotes at end of this table. 60 61 TABLE III-F. (CONTD) TABLE III-F. (CONTD) State and State and Jurisdiction Position Salary Jurisdiction Position Salary Minnesota (contd) Assistant Vice Presi- New York (contd) Chancellor $45,000 University of Minnesota dent for Academic State University (contd) Vice Chancellors (4) 31,000 each (contd) Administration $30,000 Presidents (10) 30,000-38,500 each Dean of the Law Vice Presidents (5) 30,000 each School 30,000 Provosts (7) 30,000 each Dean of the Medical Deans (9) 30,000-36,000 each School 31,000 Professors (31) 30,000-45,000 each Directors, Medical New York City Colleges Specialities (5) 30,000 each and Universities: Missouri University of Missouri: Chancellor 40,000 President 30,000 29 Provost 32,000 Chancellor 28,000 30 Presidents (8) 35,000 each Dean, Dental School 30,000 Presidents (7) 30,000 each Nebraska University of Nebraska: North Carolina Chancellor 35,000 31 Consolidated University of North Carolina: Vice Chancellor 30,000 President President (Omaha) 30,000 34,000 36 President (Medical Vice President, Center) 36,000 Academic Affairs 32,000 Nevada University of Nevada: University of North Chancellor 26,700 32 Carolina: Vice Chancellor and Chancellor (Chapel Director of Desert Hill) 32,000 36 Research 28,000 69 Chancellor (Raleigh) 31,500 36 President (Reno Chancellor (Greens- Campus) 26,700 32 boro) 31,000 36 President, Nevada Chancellor (Char- Southern University 26,700 32 lotte) 31,000 37 New Hampshire President, University of President, East Caro- New Hampshire 30,000 33 lina University 28,000 37 New Jersey Chancellor of Higher President, Western Education 32,000 Carolina University 27,000 37 Rutgers State University: President, Appalachian President 32,000 State University 27,000 37 Dean of Medical Ohio Superintendent of Public School 30,410 Instruction 40,000 Chairman, Department Chancellor, Ohio Board of Psychiatry 30,801 of Regents 40,000 Professor of Pathology 30,801 Director, Psychiatric Ohio State University: Clinic 30,801 President 40,000 38 Dean of Law Vice President, Business School at Newark 30,410 and Finance 33,888 Dean of Law School Academic Vice President at Camden 30,410 and Provost 34,968 Dean of Graduate Dean, College of School of Educa- Medicine 33,069 tion 30,410 Dean, Medical School 36,276 Dean of Faculty of Associate Dean, Med- Liberal Arts 30,410 ical School 33,132 New York State University: Director, University President and Com- Hospital and As- missioner of Higher sistant Dean, Education 45,000 34 Medical School 31,608 See footnotes at end of this table. See footnotes at end of this table. 62 63 TABLE III-F. (CONTD) TABLE III-F. (CONTD) State and State and Jurisdiction Position Salary Jurisdiction Position Salary Ohio (contd) President, Akron State Oregon (contd) State University University $30,000 39 Chairman, Department University of of Pediatrics (contd) President, Bowling $30,000 Oregon (contd) Chancellor, State Green State University 30,000 39 Colleges 35,256 66 President, Oregon President, Cleveland State University 30,000 39 State University 32,500 45 President, Portland President, Kent State 30,000 39 State College University 32,500 45 President, Miami Rhode Island President, University University 30,000 39 of Rhode Island 30,000 President, Ohio Chancellor, State University 40,000 Colleges 30,000 President, University South Dakota President, South of Toledo 30,000 39 Dakota State President, Wright University State University 30,000 39 28,500 46 President, Youngstown Tennessee President, University State University 30,000 39 of Tennessee 25,000 47 Texas President, University University of Texas Cincinnati of Cincinnati 35,000 40 System: Vice Presidents, Chancellor 30,000 48 University of Cin- Vice Chancellor for cinnati (2) 30,000 each Academic Affairs 26,000 49 University of Texas: Oklahoma Chancellor (for higher Dean, College of Edu- education) State of cation Oklahoma 30,000 43 32,000 Dean, School of Arts President, University and Sciences 33,000 of Oklahoma 30,000 41 Dean, School of Law 34,000 President, Oklahoma Dean, School of Busi- State University 29,000 42 ness Administration 33,000 Oregon University of Oregon: Dean, School of President 32,500 45 Engineering 33,000 University of Oregon Chairman and Profes- Medical School: sor of Linguistics Dean 35,000 44 Department 27,000 50 Dean of Faculties 32,500 Chairman and Profes- Chairman, Department sor of Zoology De- of Dermatology 30,000 partment 32,000 51 Chairman, Department Director, Graduate School of Psychiatry 30,000 of Library Science 30,000 Chairman, Department Chairman and Professor of Surgery 30,000 of Psychology De- Director, Division of partment 30,000 Crippled Children 30,000 Professor of Botany and Chairman, Department Dean of Graduate of Medicine 30,000 School 20,000 52 Chairman, Department Professor of Zoology 22,500 53 of Obstetrics and Welch Professor of Gynecology 30,000 Chemistry 32,000 Chairman, Department Professor of of Radiation and Philosophy 30,000 Therapy 30,000 Ashbel Smith Pro- fessor of Physics 30,000 See footnotes at end of this table. See footnotes at end of this table. 64 65 TABLE III-F. (CONTD) TABLE III-F. (CONTD) State and State and Jurisdiction Position Salary Jurisdiction Position Salary Texas (contd) Professor of Electrical Virginia Virginia Polytechnic University of Texas Engineering $27,500 54 Institute: (contd) University Professor President $31,000 in the Arts 22,500 55 Professor 32,000 Athletic Director and Head Football Medical College of Coach Virginia: 30,000 Professor and Dean Dean and Director, of School of Medical School at Galveston Medicine 22,500 56 30,000 Dean, Medical School Professor, Chairman, at Dallas 22,500 57 Neurosurgery 31,406 Texas Tech University: Professor, Chairman, Obstetrics President 24,000 58 33,000 University of Houston: Professor, Chairman, Pediatrics President 24,000 59 33,000 Office of Senior Vice Professor, Chairman, Medicine President and 33,000 Treasurer 32,800 University of Virginia: Texas A & M University: President 31,000 President 24,000 60 Professor and Dean, Academic Vice Presi- School of Law 32,000 dent and Dean of Professors: the Graduate (1) 36,000 School 30,000 (2) 34,000 each Dean of Geophysics (2) 33,000 each and Professor of (2) 32,000 each Meteorology 36,000 (1) 31,500 Dean of Sciences and (19) 30,000 each Professor of Associate Profes- Physics 36,000 sors (5) 30,000 each Chairman, Department of Chemistry 28,638 61 University of Virginia Professor of Statistics Medical Center: and Director of Professor and Graduate Institute 31,500 Chancellor 36,000 Chairman, Department Professor and Dean of of Mathematics 30,000 Medicine 36,000 Dallas County Junior Professor and Dean of College: Faculty, Arts and Chancellor 38,600 62 Science 30,000 San Antonio Junior Col- Professor and Dean of lege Tax District, School of Medicine 30,000 Bexar County: Professor and Chair- President 25,000 62 man of Physiology 30,000 Utah Professor and Chair- President, Utah State man of Derma- University 27,500 63 tology 30,000 President, University Professor and Chair- of Utah 28,000 63 man of Neuro- Vermont University of Vermont, surgery 30,000 College of Medicine: Professor and Chair- Dean 34,000 man of Obstetrics Chairman, Surgery and Gynecology 30,000 Department 30,500 Professor and Chair- See footnotes at end of this table. man of Orthopedics 38,000 66 67 TABLE III-F. (CONTD) TABLE III-F. (CONTD) State and State and Jurisdiction Position Salary Jurisdiction Position Salary Virginia (contd) Professor and Chair- Washington (contd) Dean, Business Admin- University of Virginia man of Preventive University of Washington istration $30,000 (contd) Medicine $30,000 (contd) Dean, Engineering 30,000 Professor and Chair- Dean, Graduate man of Surgery 40,000 School 30,500 Professor and Chair- Dean, School of man of Psychiatry 36,000 Medicine 40,000 Dean, School of West Virginia President, West Dentistry 33,500 Virginia University 35,000 64 Chairman, Department Wisconsin Executive Director, of English 30,500 State Coordinating Chairman, Department Committee for Higher of Bio-Chemistry 32,500 Education 37,500 Chairman, Department Director, State Uni- of Biological Struc- versities System 35,000 ture 31,600 Chairman, Department University of Wisconsin: of Micro-Biology 31,600 President 47,000 65 Chairman, Department Vice President 37,250 of Pathology 32,800 Vice President 37,000 Chairman, Department Chancellor (Madison) 36,000 65 Chancellor of Physiology and Bio-Physics 30,000 (Milwaukee) 32,500 65 Dean 35,000 Chairman, Department of Preventive Deans (4) 32,500 each Dean Medicine 32,500 30,000 Chairman, Department Wisconsin State of Surgery 30,500 Universities: Director, Primate President, Eau Claire 30,500 Center 30,700 President, LaCrosse 30,500 Director, King County President, Oshkosh 30,500 Hospital Medical President, Platteville 30,500 Center 30,000 President, River Falls 30,500 President, Stevens Director, Applied Point Physics Labora- 30,500 President, Stout tory 32,000 30,500 President, Superior 30,000 Professor, Medicine 32,000 President, White- Professor, Medicine 31,000 water 30,000 Professor, Pediatrics 30,100 President, Washington Washington University of Washington: State University 37,500 President 50,000 Vice President 40,000 1 Plus estimated $4,000 for housing and car allowances Vice President, Busi- 2 Plus quarters and actual travel expenses 3 Plus home $3,600; servants $6,000 ness and Finance 37,000 4 Exact salaries are unknown; the minimum salary for chancellors at the University of Cali- Vice President, Aca- fornia is $32,000 demic Affairs 5 Plus estimated $2,500 for quarters, car, and entertainment allowances 34,500 6 Plus estimated $2,500 for quarters and car Vice President, 7 Plus housing and services, value undetermined Research 30,000 8 Plus $3,200 9 Plus $3,000 subsistence Vice President, Uni- 10 Plus quarters and actual travel expenses versity Relations 30,000 11 Plus estimated $25,000 Dean, Arts and 12 Plus house and maintenance $3,600 13 Plus mansion, car, household servants Sciences 30,000 14 Plus house 15 Plus car See footnotes at end of this table. 16 Plus house and utilities 68 69 TABLE III-F. (CONTD) TABLE III-G. Public Corporation Positions Location 17 Plus $342.15 for travel and subsistence Name of Authority & Positions Salary Salary 18 Plus $2,018.88 for travel and subsistence California East Bay Municipal Utilities District: 19 Salary of $31,000 effective Sept. 3, 1968 20 Plus $7,500 for car, house, and utilities General Manager $43,800 21 Plus car and $3,000 living allowance Chief Engineer, Asst. Gen. Mgr. 33,996 22 Plus fringe benefits (insurance and annuities) equal to 10% of salary Attorney 30,504 23 Plus house, $6,000 Bay Area Rapid Transit District: 24 Plus car and expense account 25 Plus car and $3,000 living expenses General Manager 35,196-42,792 26 Plus house, car and $1,600 for house expenses Director of Development and 27 Plus house Operations 28,956-35,196 28 Plus $7,000-includes house, car, and personal expense allowance Director of Finance, Controller, 29 Plus house-estimated at $2,500 30 Plus $3,000 house and expenses Treasurer 26,268-31,932 31 House rent of $5,700 paid by University Transit Advisor to Gen. Mgr. 26,268-31,932 32 Plus $1,200 housing allowance; $2,400 entertainment host allowance; children may attend Metropolitan Water District of university free Southern California: 33 Plus house 34 Plus $5,000 in lieu of expenses General Manager 33,000 35 Majority in range of $30,000 to $32,000 one at $45,000 General Counsel 30,000 36 Plus car and home Southern California Rapid Transit 37 Quarters furnished 38 Plus on campus housing District: 39 Housing furnished General Manager 1 - 40 Plus house and two housekeeping aids Acting General Manager 30,000 41 Plus house and utilities 42 Salary rounded to nearest dollar; plus housing and utilities San Francisco Port Authority: 43 Plus $4,800 for quarters Director 31,752 44 Plus $1,500 expense account 45 Plus house $2,400 and $2,000 expense account Indiana Citizens Gas & Coke Utility, 46 Plus $2,500 for house and utilities Indianapolis (Quasi-public) 47 Plus quarters $3,600; car, actual travel expenses and undetermined entertainment allowance 48 Plus $21,000 from foundations General Manager 56,000 49 Plus $14,000 from faculty improvement fund Assistant Manager 33,000 50 Plus $9,000 research grant Executive Director Gas Operations 30,000 51 Plus $10,660 research grant 52 Plus $10,000 research grant Maryland Maryland Port Authority: 53 Plus $7,500 research grant Director 54 Plus $9,000 research grant 35,000 55 Plus $7,500 56 Plus $15,000 from foundation Massachusetts Massachusetts Bay Transportation 57 Plus $11,000 from foundation Authority: 58 Plus $19,000 from foundation General Manager 40,000 59 Plus $19,500 from foundation 60 Plus $11,000 from foundation New York Port of New York Authority: 61 Plus $6,362 Executive Director 62 Plus $5,000 expenses 70,000 63 Estimated $3,900 for quarters and car furnished Deputy Executive Director 49,500 64 Plus estimated $7,000 for home and car General Counsel 49,500 65 Plus use of house and car Director of Finance 66 Plus house $2,400, and expense account $2,000 49,500 67 Quarters furnished, plus $6,500 subsistence allowance Director, Port Development 45,000 68 Position vacant, this position was paid $35,000 in 1967 Director, Marine Terminals 45,000 69 Plus $2,400 entertainment host allowance Director of Administration 45,000 70 Plus health insurance $160; retirement $861 ; car $1,500 Chief Engineer 45,000 Director, World Trade 45,000 Director, Aviation 45,000 First Deputy Director, Aviation 42,000 Director, Organization & Procedures 40,000 Comptroller 39,000 Personnel Director 39,000 Director of Public Affairs 38,000 Director, Tunnels & Bridges 37,800 Director, Terminals 37,000 Asst. General Counsel 36,010 Treasurer 35,776 Director, Real Estate 35,000 Chief, Contract Division 34,190 1 Position vacant-salary negotiable-it was $40,000 in January 1967. 70 71 TABLE III-G. (CONTD) TABLE III-H. Judiciary State and Location Name of Authority & Positions Salary Salary Jurisdiction Court and Position Salary Port of New York Authority (contd) : California New York Chief, Leases & Operations Agree- Supreme Court: (continued) ments Division 34,190 Chief Justice $41,578 1 Chief, Opinions & Appeals Division 34,190 Associate Justices (6) 39,132 each 1 New Jersey Solicitor 34,190 District Courts of Appeal: Asst. Director of Aviation Project Justices (39) 36,687 each 1 Development 34,034 Superior Courts: Chief Architect 34,008 Judges (394) 30,572 each 1 Deputy Director, Marine Terminals 33,566 Administrative Director, California Deputy Chief Engineer 33,514 Courts 31,500 Chief of Construction, Newark Connecticut Supreme Court: Airport Redevelopment 33,306 Chief Justice 33,000 Deputy Comptroller 33,046 Chief Court Administrator 33,000 Chief, WTC Planning & Construction 33,020 Asst. Chief Engineer for Design 32,578 Florida Supreme Court Justices (5) 34,000 each Director, Rail Transportation 33,000 Illinois Asst. Director of Finance 32,526 Supreme Court: Deputy Director, Port Development 32,526 Justices (7) 37,500 each Chief, Central Planning 32,526 Appellate Court: Radio & Television Director 32,500 Judges (21) 35,000 each Deputy Director, Tunnels & Bridges 33,072 Massachusetts Supreme Court: Engineer of Research & Development 31,694 Chief Justice 30,800 Manager, Construction Division 31,096 Director of Port Commerce 31,096 Michigan Supreme Court: Project Director, Newark Airport Justices (9) 35,000 each Redevelopment 31,096 Court of Appeals: Asst. Director of Avia. for Judges (9) 32,500 each Business Administration 31,018 Wayne County Circuit Court: Chief, WTC Rentals & Development 31,018 Judges (27) 30,000 each Triboro Bridge & Tunnel Authority: Detroit Recorder's Court: Executive Officer & Chief Engineer 40,500 Deputy Chief Engineer 35,000 Presiding Judge 32,000 Counsel to Triboro Bridge Authority 40,000 Judges (12) 30,000 each Comptroller 32,000 Traffic Judge (3) 30,000 each 2 New York State Thruway Authority: New Jersey State Supreme Court: Executive Director 32,000 Chief Justice 37,000 Niagara Frontier Port Authority: Associate Justices (6) 36,000 each Executive Director 33,000 State Superior Court: Chairman of the Board 30,000 Judges (76) 32,000 each Pennsylvania Southeastern Pennsylvania Transportation County Courts: Authority: Judges (85) 32,000 each General Manager 45,000 District Courts: Delaware River Port Authority of Judges (30) 30,000 each Juvenile and Domestic Relations Courts: Pennsylvania & New Jersey: Executive Director 40,000 Judges (25) 30,000 each Director of Engineering and Planning 37,972 New York Court of Appeals: Chief Justice 42,000 8 Associate Judges (6) 39,500 each 3 Supreme Court: Justices (148) 37,000 each Justices (24) 34,500 each 4 Supreme Court-Appellate Division: Presiding Justices (4) 41,500 each Associate Justices (23) 40,000 each See footnotes at end of this table. 72 73 TABLE III-H. (CONTD) Appendix E State and Jurisdiction Court and Position Salary Average Compensation-2,537 Chief Executive Officers New York Court of Claims: (Source: Top Management Report. Nov. 1967 (continued) Judges (14) 31,500 each 5 American Management Association) Surrogates Court: Surrogates (5) 37,000 each Surrogate 35,500 Type of Industry Surrogate 30,000 Family Court: Wholesale Judges (4) 30,000 each Sales Volume Durable Non-Durable Petroleum Utilities and County Court: (Millions) Goods Goods Retail Trade Judges (4) 30,000 each (In thousands of dollars) Pennsylvania Supreme Court: Under $2 $ 31.8 $ 35.0 $ 34.2 $ 24.3 * Chief Justice 38,000 $2 to $5 41.3 41.6 47.1 35.4 $ 33.6 Justices (6) 37,500 each Superior Court: $5 to $10 48.2 48.6 * 40.2 39.2 President Judge 36,000 $10 to $25 61.3 57.4 49.8 49.6 50.4 Judges (6) 35,500 each Courts of Common Pleas: $25 to $50 72.2 70.9 66.5 59.0 63.6 Judges (5) 32,500 each $50 to $100 87.4 80.4 82.0 70.0 73.5 Judges (115) 30,000 each Orphans Courts: $100 to $200 111.3 96.8 112.5 87.1 84.2 President Judge 32,500 $200 to $500 144.3 143.2 127.5 110.1 116.5 Judges (27) 30,000 each $500 to $1 billion 178.5 174.2 193.0 122.7 143.0 1 Salaries were increased on September 1, 1968 Over $1 billion 269.5 220.7 250.1 181.4 186.8 2 $10,000 from city and $20,000 from county 3 $6,000 in lieu of expenses 4 $3,000 in lieu of expenses 5 $4,500 in lieu of expenses (*) Insufficient Data. 74 75 Appendix F Appendix G Average Percentage Increases in Executive Salaries 1953-1967 Highest Paid Executives in 1304 Corporations in 1965 (Source: Top Management Report, American Management (Source: National Industrial Conference Board Study) Association. November 1967) Median Range of Middle Half Year of Increase in salary Total Manufacturing $100,000 $75,000 to $150,000 survey over previous year Compensation 1 Retail trade 100,000 74,000 to 154,500 1953 3.9 0.6 1954 4.6 5.2 Gas and electric utilities 80,000 65,000 to 100,000 1955 2.7 1.8 Commercial banking 63,000 48,500 to 83,000 1956 4.5 5.9 1957 4.4 5.1 Life insurance 47,500 33,000 to 65,000 1958 4.2 3.0 1959 2.9 1.2 Fire, marine and 3.9 6.2 Casualty insurance 45,000 33,000 to 67,500 1960 1961 1.6 0.2 1962 3.1 2.6 1963 3.0 4.0 1964 3.4 3.9 1965 3.5 4.9 1966 3.5 5.3 1967 4.0 4.8 Salary increases averaged 3.6 percent a year for the 15-year period (1953-1967) or 3.5 percent anuually for the 5-year period (1963- 1967). Increases in total compensation average 3.7% a year for the 15- year period (1953-1967) or 4.6% annually for the 5-year period (1963-1967). 1 As of 1966, total compensation percentages reflect over-all increases in salary plus bonus only. Percentages prior to 1966 reflect increases in retirement con- tributions as well. 76 77 Appendix H Salaries of Presidents of Federal Reserve Banks December 31, 1967 (Source: Fifty-Fourth Annual Report of Board of Governors of the Federal Reserve System) Federal Reserve Annual Salary Bank of President Boston $ 40,000 New York 75,000 Philadelphia 45,000 Cleveland 45,000 Richmond 45,000 Atlanta 35,000 Chicago 60,000 St. Louis 35,000 Minneapolis 42,500 Kansas City 42,500 Dallas 45,000 San Francisco 46,000 78 U. S. GOVERNMENT PRINTING OFFICE 1968 O - 327-824 THE BUDGET OF THE United States Government 1970 — SUPPLEMENT - EXECUTIVE, LEGISLATIVE, AND JUDICIAL SALARY RECOMMENDATIONS FOR RELEASE AT 12 NOON (E.S.T.) WEDNESDAY, JANUARY 15, 1969 There should be no premature release of NOTICE: this Budget nor should any of its contents be paraphrased, alluded to, or hinted at in earlier stories. There is a total embargo on the Budget until 12 noon, January 15, 1969, which includes any and all references to any material in the Budget or the Budget Appendix. GEORGE CHRISTIAN, Press Secretary to the President. For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 - Price 10 cents SALARY RECOMMENDATIONS Executive, Legislative, and Judicial Salaries Public Law 90-206, approved December 16, 1967, established the Commission on Executive, Legislative, and Judicial Salaries. The Commission is required to make recommendations to the President, at 4-year intervals, on the rates of pay for Senators, Representatives, Federal judges, Cabinet officers and other agency heads, and certain other officials in the executive, legislative, and judicial branches. The law requires that the President, in the budget next submitted by him after receipt of a report of the Commission, set forth his recommenda- tions with respect to the exact rates of pay he deems advisable for those offices and positions covered by the law. The President's recom- mendations become effective 30 days following transmittal of the budget, unless in the meantime other rates have been enacted by law or at least one House of Congress has enacted legislation which specifi- cally disapproves of all or part of the recommendations. At the request of the President, the first report of the Commission was submitted to him in December 1968. The report has been con- sidered by the President and, in accordance with section 225(h) of Public Law 90-206, approved December 16, 1967, 81 Stat. 644, the President recommends the following rates of pay for executive, legislative, and judicial offices and positions within the purview of subsection (f) of that section: A. Senators, Members of the House of Representatives, and the Resident Commissioner from Puerto Rico $42,500 B. For other offices and positions in the legislative branch, as follows: Comptroller General of the United States $42,500 Assistant Comptroller General of the United States_ $40,000 General Counsel of the United States General Accounting Office, Librarian of Congress, Public Printer, Architect of the Capitol $38, 000 Deputy Librarian of Congress, Deputy Public Printer, Assistant Architect of the Capitol $36,000 1 2 THE BUDGET FOR FISCAL YEAR 1970 C. For justices, judges, and other personnel in the judicial branch, as follows: Chief Justice of the United States $62, 500 Associate Justices of the Supreme Court $60, 000 Judges, Circuit Court of Appeals; judges, Court of Claims; judges, Court of Military Appeals; judges, Court of Customs and Patent Appeals $42,500 Judges, District Courts; judges, Customs Court; judges, Tax Court of the United States; Director of the Administrative Office of the United States Courts $40,000 Deputy Director of the Administrative Office of the United States Courts; commissioners, Court of Claims; referees in bankruptcy, full-time (maxi- mum) $36,000 Referees in bankruptcy, part-time (maximum) $18,000 D. For offices and positions under the Executive Schedule in subchapter II of chapter 53 of title 5, United States Code: Positions at level I $60,000 Positions at level II $42,500 Positions at level III $40,000 Positions at level IV $38,000 Positions at level V $36,000 Federal Pay 90TH CONGRESS HOUSE OF REPRESENTATIVES REPORT 1st Session No. 722 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 SEPTEMBER 28, 1967.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. DULSKI, from the Committee on Post Office and Civil Service, submitted the following REPORT together with INDIVIDUAL AND MINORITY VIEWS [To accompany H.R. 7977] The Committee on Post Office and Civil Service, to whom was referred the bill (H.R. 7977) to adjust certain postage rates, and for other purposes, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass. AMENDMENTS The committee proposes two amendments to the bill: "An amend- ment to the text and an amendment to the title." AMENDMENT TO THE TEXT The amendment proposed by the committee to the text of the bill strikes out all after the enacting clause and inserts in lieu thereof a substitute text which is contained in italic type in the reported bill. The explanation of the provisions of the substitute text is contained in the explanation of the bill set forth hereinafter in this report. AMENDMENT TO THE TITLE The amendment proposed by the committee to the title of the bill is intended to reflect more accurately the text of the bill as pro- posed to be amended by the committee. 82-911 0-67-1 2 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 3 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 SALARY INCREASES PURPOSE The major purposes of this legislation are-- Through the years, this Nation has built a corps of public To increase postal rates in order to provide postal revenues servants whose quality is unmatched by any other country approximately equal to postal operating costs after public service in the world. expenses have been deducted, as authorized by the congressional Our career employees are well-trained and experienced. policy set forth in 39 U.S.C. 2202(c)(4); In ever-increasing numbers, they are skilled professionals. To increase salaries of Government employees and provide They include not only administrators and managers, but authority to complete the implementation of the congressional doctors, lawyers, diplomats, economists, scientists, engineers, policy specified in 1962, 5 U.S.C. 5301(2), to bring Federal salary actuaries, systems analysts, law enforcement officers, schedules to levels that are comparable to those in private nurses-and many others critically needed to provide public enterprise; and services in a complex world. To regulate the mailings of pandering advertisements. These men and women come to the public service not by It is also the purpose of this legislation- chance, but by choice. They come because they are chal- To improve the mailing privileges for members of the Armed lenged by problems that are far-reaching-and fateful. They Forces; and come because Government offers unique opportunities for To modernize the provisions relating to mail matter for the unselfish service. blind, and to include within the benefits of such provisions persons From them, we expect unusual dedication. In turn, they who cannot read conventionally printed material because of have a right to expect from their Government rewards that physical impairment. match their contributions. We have made great progress recently toward a pay scale EXECUTIVE RECOMMENDATIONS which approaches that of private industry. Since 1962, civilian employees have received pay increases amounting to The postal rate legislation is based on the recommendations of the more than 23 percent. We have improved retirement and President included in his message to the Congress on April 5, 1967, other fringe benefits so that they now compare favorably House Document No. 95, 90th Congress. A detailed explanation of the with benefits in private industry. There have been corre- recommendations is included in the Postmaster General's report to the sponding increases in military pay, and fringe benefits have Congress dated April 17, 1967, entitled "Survey of Postal Rates," been improved substantially. House Document No. 106, 90th Congress. The draft of legislation on Yet we still fall short of comparability with private in- postal rates was submitted by the Postmaster General to the Congress dustry. The Annual Report of the Chairman of the Civil by letter dated April 5, 1967. The legislation recommended is included Service Commission and the Director of the Bureau of the in H.R. 7977 as introduced. Budget describes the gap which remains between Govern- The draft of legislation on Federal salaries was submitted by the ment and industry pay scales. I am transmitting that report Chairman, U.S. Civil Service Commission, on April 5, 1967, and is to the Congress today with the renewed conviction that this included in H.R. 8261 as introduced. gap must be closed. The President's message is set forth, as follows: To close the gap in one year would require an average pay To the Congress of the United States: increase of 7.2 percent. With a similar increase for the Armed Two weeks ago in my Message to the Congress on the Forces, the cost would be more than $2.5 billion per year. Quality of American Government, I stated: In view of today's fiscal and economic conditions, my "The machinery of our Government has served us well. advisers inform me that a pay raise of this magnitude would It has been the vehicle of the greatest progress and prosperity not be prudent. While inflationary pressures in the economy any nation has ever achieved. have lessened in recent months, they have not disappeared. "But this record should give us no cause for complacency. They could easily recur. We must therefore continue to seek For any realistic review today reveals that there are sub- restraint in private wage settlements and to exercise restraint stantial improvements to be made." in the operations of Government. Today I ask the Congress to take two vital steps to help But a pay raise for the Government's employees clearly is bring about those improvements: needed. We must avoid placing the Government at a serious -Increase the salaries of Government employees. disadvantage in recruiting and retaining competent workers— -Increase postal rates and improve postal services. and we must keep faith with our employees. In America we demand the highest level of excellence in To do so requires that we achieve comparability with the public service. If we expect high quality, private pay levels-and that we do it in a way which does not - We must be able to attract and keep highly competent endanger our unparalleled economic prosperity. career employees. As President Kennedy said five years ago, "to pay more - We must be willing to give them the machinery they than this is to be unfair to American taxpayers-to pay less need to do an effective job. 4 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 5 is to degrade the public service and endanger our national security." activity, we must have a modern, highly mechanized postal service. I recommend a 4.5 percent pay increase for civilian employees effective October 1, 1967. We do not have such a postal service today. I recommend that the Congress take the final step this year The post offices in many of our major cities were built dur- to achieve full comparability with private industry. I propose ing the 1930's-built to handle between 25 and 30 billion a two stage plan to remove the remaining comparability lag in pieces of mail a year. This year, nearly 80 billion items will all grades by October 1, 1969. The first step would take effect move through the postal system. Next year still another 3 bil- in October 1968 and the second a year later. lion pieces of mail will be processed. If this growth rate con- For our military personnel, pay alone can never reflect tinues, mail volume will exceed 100 billion pieces a year by the full measure of our debt. On the battlefields, in outposts 1976. where there is tension but no battle, in the vast defense instal- These figures make it dramatically clear that we must re- lations of our country, these men and women protect our model old post offices and build new facilities. We must equip national security. We must assure them and their families them with modern, high-speed mail processing machines-the that they will be compensated for their service on a scale most efficient our Nation's technology can produce. which is comparable to that of their 2.5 million civilian co- We have made a good start in the past few years on mod- workers. As civilian pay goes up, so should the pay of the ernizing and mechanizing the postal service. That pace must armed services. now be quickened. We must place even greater emphasis on I recommend an increase in regular military pay similar to research, engineering and new technology. We must intensify the raise for civilians-an average 4.5 percent effective October 1, our efforts to enlist the support of all Americans to increase 1967. their use of the ZIP code. This year the Secretary of Defense has been conducting a In the 1968 budget I have recommended more than $300 searching review of the principles underlying the military million for postal modernization. This represents a 40-percent compensation system. When these studies have been com- increase in expenditures for research and engineering and a pleted, I will recommend further changes in the Armed 46-percent increase in funds for plant and equipment. Forces pay system. These are substantial increases. But they are fully justified We must also take steps to ensure the adequacy of salaries by the planning that has preceded them and the size of the for top officials in the Legislative, Judicial and Executive task that lies ahead. Branches of the Government. To this end, I have established To keep pace with the demands of a growing Nation, we a special Commission headed by Frederick R. Kappel to must also modernize the postal rate structure. We must study executive pay in the three branches of the Federal bring postal revenues into line with operating costs. Government. When I have reviewed its report, I will make Present rates do not provide sufficient funds for necessary recommendations for appropriate adjustments in these areas. improvements in postal facilities and equipment. Indeed, Salary reform for the government of an increasingly present revenues do not even cover normal operating costs. complex and ever-changing society is never complete. The For fiscal 1968, the Post Office Department deficit will be entire stucture and interrelationships of all Federal pay about $1.2 billion-and this does not include the pay increase systems, civilian and military, should be continually re- I am recommending today. Less than half of this deficit is viewed and improved. The adequacy of the basic pay system attributable to the "public service" functions of the Depart- itself must be periodically re-examined. ment. I recommend that a special Joint Salary Commission, repre- Yet the Postal Policy Act of 1958 calls for postal revenues senting the Executive, Legislative, and Judicial Branches, be "approximately equal" to operating costs after public service established to examine all Federal pay systems and report to expenses have been deducted. the President and Congress within two years. I recommend that the Congress increase postal rates for all classes of mail: POSTAL RATES AND SERVICES -First class and airmail: a 1-cent increase in postage for cards and letters sent first-class or airmail, effec- The postal service is the key link of the Nation's com- tive July 1, 1967. merce. It is also the personal communications network of -Second class: an average increase of 22 percent for all some 200 million private citizens. It must be responsive to the categories of second-class mail, phased over a 3-year needs of the public and the needs of the business community. period beginning January 1, 1968. That system now bears a tremendous burden. Each year -Third class: an average increase of 28 percent for all the Post Office Department processes as much mail as the rest categories of third-class mail. The rate increase for of the world combined. To cope with the great outpouring of single pieces of mail will go into effect July 1, 1967, mail created by our country's increasing social and economic and the bulk rate increase on January 1, 1968. 6 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 -Fourth class: an average increase of 21 percent for spe- cial rate fourth-class mail (mainly books and records,) effective July 1, 1967. -A special surcharge on odd-sized envelopes which can- not be processed by postal machinery. This surcharge, which will go into effect in 2 years, is designed to dis- TITLE I-POSTAL REVENUE ACT OF 1967 courage the use of envelopes which cannot be rapidly processed through postal machinery. REVENUE-COST The rate increases for second and third class bulk mail would have been substantially higher and would have been The postal rate increases provided by this legislation, when fully needed sooner if the ZIP code presorting regulations had not effective, will add more than $884 million annually to postal revenue. become effective on January 1 of this year. In recognition of The Post Office Department's operating deficit in fiscal year 1967 the cost to mailers of ZIP coding and the savings anticipated was $1, 148 million, up from $942 million in fiscal year 1966. from this program, I am recommending that the effective Of the total 1967 deficit, $557 million was estimated as public service date for second class and bulk rate third class increases be costs. These costs, enumerated in 39 U.S.C. 2303, are associated with delayed until January 1, 1968. the services performed by the Post Office Department to benefit the These postal rate increases will produce $700 million in Nation as a whole rather than any one mail user group. postal revenues in fiscal 1968. When fully effective, they will The difference between public service costs ($557 million) and the add more than $800 million annually to postal revenues. operating deficit ($1,148 million) is termed the "postal deficiency," This legislation will provide the necessary funds for postal which was $591 million for fiscal year 1967. modernization and the proposed pay increase for postal em- The additional revenue of over $884 million, expected to result in ployees. It will enable the Post Office Department to begin this legislation when fully effective, is expected to be sufficient to immediately to provide better services for all Americans: reduce the estimated postal deficiency and cover such increases in cost -Faster and more efficient delivery of the mails, as can be expected due to- -Restoration of six-day parcel post service, (1) Major service improvements now being initiated or planned -Door delivery in some residential areas now served to meet the unprecedented increase in mail volume; by roadside boxes. (2) The pending pay increases for postal employees; and (3) Postal modernization projects. A BETTER GOVERNMENT The provisions of title I of the bill extending the mailing privileges for the U.S. Armed Forces (secs. 101 (b) and (c), 102(b)(3), 116, and The pay and postal rate increases I recommend in this 117) will add approximately $6.5 million in costs for the Department message are essential if we are to have a government of of Defense, which is responsible for such costs for the Armed Forces. responsive and talented people and an efficient postal system. Delay in attaining comparability beyond the effective SUMMARY OF PROPOSED RATE CHANGES dates I have suggested is inexcusable. To neglect-and thus impair-the public service would be far more expensive for FIRST CLASS AND AIRMAIL (SECS. 101 AND 102) the American people in the long run. Delay in enacting the postal rate increases I request will Mail class Present rate Postmaster General's Committee amendment hamper significantly our efforts to build a modern and recommended rate rate efficient postal system. 1st class: The government of this Nation can never be any better Letters 5 cents per ounce 6 cents per ounce 6 cents per ounce. than the people who work for it, the tools they have, and Drop letters 4 cents per ounce 5 cents per ounce Do. Cards 4 cents each 5 cents each 5 cents each. the people whom they serve. Airmail: Letters 8 cents per ounce 9 cents per ounce 10 cents per ounce. I urge the Congress to act promptly on these proposals to Cards 6 cents each 7 cents each 8 cents each. insure those who work in our government just pay for the Parcel post By zones By zones By zones. dedication they bring to the task of serving every one of us. LYNDON B. JOHNSON. SECOND-CLASS PUBLICATIONS THE WHITE HOUSE, April 5, 1967. Regular rates-Outside county (sec. 104) The committee approved a 23-percent increase, effective in three steps beginning on January 7, 1968, as recommended by the Post- master General. The current rates and the rates proposed by the committee are set forth below: 7 8 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 9 Current rates COMMITTEE Editorial and news content 2.8 cents per pound. Advertising: [In cents] Zones 1 and 2 (150 miles) 4.2 cents per pound. Zone 3 (300 miles) 5.2 cents per pound. During Zone 4 (600 miles) During During During During During calendar 7.2 cents per pound. calendar calendar calendar calendar calendar year 1973 Zone 5 (1,000 miles) 9.2 cents per pound. year 1968 year 1969 year 1970 year 1971 year 1972 and Zone 6 (1,400 miles) 11.2 cents per pound. thereafter Zone 7 (1,800 miles) 12 cents per pound. Rate per pound: Zone 8 (over 1,800 miles) 14 cents per pound. Advertising portion: Minimum 1 cent per piece. Zones 1 and 2 2.35 2.9 3.45 4.0 4.55 5.1 Zone 3 2.55 3.3 4.05 4.8 5.55 6.3 Zone 4 2.95 4.1 5.25 6.4 7.55 8.7 COMMITTEE Zone 5 3.35 4.9 6.45 8.0 9.55 11.1 Zone 6 3.5 5.2 6.9 8.6 10.3 12.0 [In cents] Zone 7 3.5 5.2 6.9 8.6 10.3 12.0 Zone 8 3.5 5.2 6.9 8.6 10.3 12.0 Nonadvertising portion 1.9 2.0 2.1 2.1 2.1 2.1 Mailed during calendar Mailed during calendar Mailed on and after Minimum charge per piece .2 .2 .2 .2 .2 .2 year 1968 year 1969 Jan. 1, 1970 Rate per pound: Advertising portion: Classroom publications (sec. 103) Zones 1 and 2 4.5 4.8 5.1 Zone 3 The committee approved the Postmaster General's recommenda- 5.6 5.9 6.3 Zone 4 7.7 8.2 8.7 tion that classroom publications continue to pay 60 percent of the Zone 5 9.9 10.5 11.1 Zone 6 12.0 12.8 13.6 regular outside county rates. Zone 7 12.8 13.7 14.5 Zone 8 15.0 16.0 17.0 Within county rates (secs 103 and 113) Nonadvertising portion 3.0 3.2 3.4 Minimum charge per piece 1.1 1.2 1.3 The committee made the per copy rates applicable only to publica- tions mailed for delivery at the post office of original entry and Nonprofit publications (sec. 103) adopted a rate schedule which is the same as that recommended by the Postmaster General, as follows: At present a flat rate of 1.8 cents a pound with a minimum of 0.125 cent per piece, is charged for qualified nonprofit second-class mail. Current Committee The Postmaster General proposed an increase to 0.2 cent on the min- rates (cents) Year Rates imum rate and increases over a 3-year period on the pound rates in (cents) proportion to the amount of advertising content. The committee increases the existing minimum charge per piece of 0.125 cent to 0.2 Per pound 1.25 1968 1.3 1969 1.4 cent, prescribes a three-step increase for the nonadvertising portion, 1970 1.5 and provides that the advertising portion of nonprofit publications Minimum per piece .125 1968 .2 would be subject to zone rates that increase in six steps during the period 1968-73. The Postmaster General's and the committee's Agricultural publications (sec. 103) proposals, beginning on January 7, 1968, are set forth below: Adopted a separate category for agricultural publications devoted POSTMASTER GENERAL to promoting the science of agriculture, 70 percent of which are distributed to rural areas. This category will have a rate for the adver- [In cents] tising portion of 4.2 cents per pound in the first and second zones Mailed during Mailed during Mailed on and after (present rate). calendar year calendar year Jan. 1, 1970 CONTROLLED CIRCULATION 1968 1969 Rate per pound when the advertising portion is- The committee adopted an increase (sec. 106) phased over 3 years, 10 percent or less 1.9 2.0 2.1 beginning January 7, 1968, in the pound rate and the minimum per Over 10 percent but not more than 20 percent 2.0 2.1 2.2 Over 20 percent but not more than 30 percent 2.0 2.2 2.3 piece rate, the same as recommended by the Postmaster General, as Over 30 percent but not more than 40 percent 2.0 2.2 2.4 follows: Over 40 percent but not more than 50 percent 2.1 2.3 2.5 Over 50 percent but not more than 60 percent 2.1 2.3 2.6 Over 60 percent but not more than 70 percent 2.1 2.4 2.7 Over 70 percent 2.1 Current Committee 2.5 Minimum charge per piece 2.8 .2 rates .2 .2 (cents) Year Rates (cents) Per pound 13.5 1968 14.0 1969 14.5 1970 15.0 Minimum per piece 1.0 1968 1.9 1969 2.9 1970 3.8 10 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 11 THIRD-CLASS MAIL Library rate (sec. 108) A special library rate, which is now 4 cents for the first pound and Single piece rates (sec. 107) 1 cent for each additional pound, was increased to 8 cents for the The committee adopted an increase in the single piece rates to 6 first 2 pounds and 3 cents for each additional pound, as recommended cents for the first 2 ounces or fraction thereof and 2 cents for each by the Postmaster General. additional ounce or fraction thereof. Current rates are 4 cents and 2 cents; the Postmaster General had recommended an increase to 5 REVENUE EFFECT OF COMMITTEE CHANGES cents for the first 2 ounces, with 2 cents for each additional ounce. [In millions of dollars] Bulk rate regular (sec. 107) Com- Com- The committee adopted bulk rates, the same as recommended by Mail class H.R. 7977 mittee mittee changes bill the Postmaster General, effective January 7, 1968, as follows: 1st class: Letters 493.2 493.2 Current rates Committee Drop letters 1.1 +1.1 2.2 (cents) (cents) Cards 23.0 23.0 Per pound (books, etc.) Total, 1st class 517.3 +1.1 518.4 Per pound (circulars, etc.) 12 16.0 Minimum per piece 18 22.0 Airmail: 2.875 3.8 Letters 28.1 +28.2 56.3 Cards .3 +.3 .6 Parcels -9.2 +2.0 -7.2 Bulk nonprofit (sec. 107) Total, airmail 19.2 +30.5 49.7 Pound rates for bulk nonprofit third-class mailings are 50 percent 2d class: of the regular pound rates and the minimum rate is increased as recom- Regular 25.0 25.0 mended by the Postmaster General, as follows: Nonprofit 2.2 +4.0 6.2 Classroom .4 .4 In-county: Pound rate 1.0 1.0 1 cent or 2 cents per piece 1.0 1.0 Current Committee Transient .5 .5 rates (effective Jan. 7, (cents) 1968) (cents) Total, 2d class 30.1 +4.0 34.1 Per pound (books, etc:) 3d class: 6 8.0 Single-piece 34.9 +34.9 69.8 Bulk-Regular 154.1 154.1 Bulk-Nonprofit 21.8 -11.7 110.1 Per pound (circulars, etc.) 9 11.0 Total, 3d class 210.8 +23.2 234.0 Controlled circulation 6.4 6.4 Minimum per piece 4th class: Educational material 12.3 12.3 1.25 1.9 Government mail 28.8 .4 29.2 Total 824.9 +59.2 2884.1 Charitable nonprofit (sec. 107) 1 Adjusted to reflect separate rate increases for charitable, religious, and health organizations. 2 Estimates do not include changes affecting the following: 2d-class "inserts," air 2d class, bills and statements of The committee increased the existing minimum rate of 1.25 cents accounts, and reduced 2d-class rates for farm publications. to 1.3 cents per piece for bulk nonprofit mailings of organizations with charitable, religious, or general health purposes, or when bulk mailings by qualified nonprofit organizations consist wholly of solicitations of funds to be used for charitable, religious, or general health purposes. SPECIAL RATE FOURTH-CLASS MAIL General rate (sec. 108) The general rate for books, films, records, and other special items, which is now 10 cents for the first pound and 5 cents for each addi- tional pound, was increased to 16 cents for the first 2 pounds and 6 General. cents for each additional pound, as recommended by the Postmaster 12 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 13 PROJECTED COST COVERAGE BY CLASSES OF MAIL MAIL CLASS FINANCES, 1966 ADJUSTED (In percent] [Dollar amounts in millions] Without public service With public service Postal Cost coverage Mail classification Deficit defi- (percent) After After Classification Reve- Costs or sur- Public Now 1 After ciency com- Now 1 After com- nues plus services or sur- Before After H.R. 7977 mittee H.R. 7977 mittee plus public public bill bill services services F Eah to b: 1st class 103.0 123.3 123. 103.0 123.3 123. 3 First-class mail $2,333.9 $2,266.2 +$67.7 +$67.7 103.0 103. Airmail: Letters and cards 105.3 Airmall: 118.5 131.7 Parcel post 105. 118.5 131.7 Letters and cards 185.9 176.5 174.5 +9.4 159.5 +9.4 105.3 105. 3 162.4 174.5 159.5 162. 4 Parcel post 90.5 51.9 +38.6 +38.6 174.5 174.5 Total, airmail 121.3 Fees .6 128.1 +.6 138.9 +.6 121.3 128.1 138.9 2d class: Total 277.0 228.4 +48.6 +48.6 121.3 121.3 In county 13.1 15.2 15.2 100.0 Nonprofit 100.0 100.0 Second-class mail: 7.0 8.8 11.9 100.0 Classroom 100.0 100.0 Incounty 10.1 77.4 -67.2 18.3 $67.2 13.1 100.0 23.8 23.8 100.0 Regular 100.0 100.0 Nonprofit publications 8.3 118.2 29.3 -109.9 109.9 7.0 100.0 36.2 36.2 29.3 Transient 36.2 36.2 Classroom publications 1.5 8.0 -6.6 92.1 6.6 18.3 100.0 100.0 100.0 92.1 100.0 100.0 Regular publications 97.7 334.1 -236.3 -236.3 29.3 29.3 Total, 2d class 23.3 Return form 3579 4.3 +4.3 28.4 29.0 +4.3 Controlled circulation 35.2 42.5 42.9 57.9 Transient 4.4 4.8 -.4 73.1 -.4 92.1 92. 73.1 57.9 73.1 73.1 3d class: Total, second-class mail, 126.3 542.5 -416.2 183.7 -232.5 23.3 35.2 Single piece rate 86.2 Controlled circulation publications 18.9 32.7 -13.8 100.6 -13.8 57.9 57.9 114.9 86.2 Bulk rate regular 100.6 114.9 61.2 80.2 80.2 61.2 Bulk rate nonprofit 80.2 80.2 27.0 Third-class mail: 40.7 33.4 100.0 100.0 100.0 Single-piece rate 200.9 233.1 -32.2 -32.2 86.2 86.2 Total, 3d class 62.9 Bulk-rate regular 436.2 713.3 -277.1 80.3 -277.1 61.2 61.2 82.4 69.3 86.8 90.0 Bulk-rate nonprofit 36.9 136.4 -99.5 99.5 27.0 100.0 4th class: Fees 7.6 +7.6 +7.6 Parcels and catalogs , 97.3 97.3 97.3 97.3 Special rate 4th class 97,3 97.3 42.4 51. Total, third-class mail 681.6 1,082.8 -401.2 99.5 -301.7 62.9 69.3 51.1 100.0 100.0 100.0 Total, 4th class 89.9 Fourth-class mail: 91.1 Government mail 90.8 97.5 97.5 97.5 105.2 Parcels 783.8 794.3 -10.5 -10.5 98.7 98.7 124.9 125.1 International mail 105.5 125.3 125.5 Catalogs 31.1 43.8 -12.7 90.4 -12.7 71.0 71.0 100.2 100.2 90.6 100.3 100.3 Fees .6 +.6 +.6 Total, all mail and services 83.1 95.4 96.5 91.5 104.5 105.7 Total, zone-rate mail 815.5 838.1 -22.6 -22.6 97.3 97.3 Special-rate fourth-class mail 55.4 130.6 -75.2 75.2 42.4 100.0 report. 1 Fiscal year 1966 adjusted for known revenue and cost changes as reported in the fiscal year 1966 cost ascertainment Total, fourth-class mail 870.8 968.6 -97.8 75.2 -22.6 89.9 97. 5 2 Not adjusted for mandatory ZIP code savings. Government mail 136.1 129.4 +6.7 .4 +7.1 105.2 105. 5 3 Rates set administratively by Postmaster General; International rate changes effective May 1, 1967. Free for the blind 2.9 -2.9 2.9 100.0 International mail 157.9 174.5 -16.7 .3 -16.3 90.4 90.6 Special services 2 278.3 333.2 -55,0 55.0 83.5 100.0 Nonpostal services for other agencies 81.9 106.4 -24.5 24.5 77.0 100.0 Unassignable revenues and costs 9.4 8.6 +.8 +.8 109.5 109.5 Public service direct costs 105.5 -105.5 105.5 Total, all mail and services 4,972.0 5,981.8 -1,009.7 547.1 --462.6 83.1 91. 1 Adjusted for known cost and revenue changes 3 Special services includes: registered, certified, insured, or cash on delivery mail, special delivery, money orders, and stamped envelopes; offset by a surplus in postal savings and box rents. 3 Nonpostal services for other agencies includes: civil service functions for other agencies, documentary stamps, mi- gratory bird stamps, official mail messenger service, building services for other agencies; offset by a surplus in sales of U.S. savings bonds. Note: Estimated current basis, Jan. 20, 1967. COST ASCERTAINMENT AND POSTAL RATE-FIXING POLICY The cost ascertainment system is a statistical-accounting system. It develops the ratio of revenue to cost for each class of mail or serv- ices, showing the percentage of cost coverage for each class. The sys- tem does not take into account factors, other than cost, which gener- ally are to be considered in fixing postal rates and fees under policies established by law (39 U.S.C. 2301-2306). 14 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 15 For example, the system does not attempt to evaluate such service method, special adjustments were required to reflect seasonal varia- differences as- tions. 1. The value of priority given first-class and airmail, or the The Post Office cost ascertainment system has been studied many deferment given to any other class of mail; times in its history, and it is under continual study by the Post Office 2. The relative values of the various services to the public; or Department itself. This is, as nearly as it can be at any point in 3. The relative intrinsic values of the items handled. time, an unbiased system of revenue allocation and cost allocation Some people consistently try to justify postage rate adjustments which seeks to portray the financial aspect of things as they actually solely on cost coverage percentages, which is contrary to congressional are. It ascribes to each class of service the portion of the revenues policy based on law. that that class brings in. And it ascribes to each class of service or The cost coverage percentages are merely one of the many factors other activity the costs that are involved in performing the service that, under the statutory policy, should be considered and weighed or conducting the activity. The system uses scientific sampling and in the congressional rate-fixing process. other statistical techniques, and conventional cost accounting Cost ascertainment principles. The cost ascertainment system is required by law (39 U.S.C. 2331) Postal rate-fixing policy to state the revenues derived from and cost of- It is the declared policy of the Congress (39 U.S.C. 2301-2306) 1. Carrying and handling the several classes of mail matter; and that the Congress will fix and adjust from time to time the postal 2. Performing special services. rate structure as the public interest may require in accordance with The system is designed to credit to each of the classes of mail and the general principles, standards, and related requirements specified services the portion of revenue it has earned, and to assess against each in the law. its portion of the cost of the postal service. Historically, and as a matter of public policy, the Congress has The principal source of postal revenue is from the sale of stamps recognized and accepted certain relationships among the several classes: and from postage which is paid under a permit. In many cases, there of mail. The major principles, standards, and related requirements, as is no possible way to identify postal revenues by class of mail as stamps set forth in the law, which justify the relationship among the several may be used for service on any class of mail and on special services classes of mail are- requiring stamps. 1. Postal rates and fees shall be adjusted from time to time as Revenues are distributed- may be required to produce the amount of revenue approximately 1. By direct identification of the class of mail where possible; equal to the total cost of operating the postal establishment less 2. By assignment of amounts computed from administrative the amount deemed attributable to the performance of public records; or service; 3. By apportionment based on the accounting and sampling 2. First-class mail constitutes a preferred service and there- at 1966). designated cost ascertainment post offices (500 in fiscal year fore, the postage for first-class mail should be sufficient to cover the entire amount of the expenses allocated to first-class mail, Costs distributed include those financed from revenues and reim- plus an additional amount representing the quality and character bursements and those charged against appropriation limitations. of the service rendered in terms of priority, secrecy, security, and The assignment of costs is made by- speed of transmission; 1. Direct allocation to each class of mail wherever possible; 3. All classes of mail, particularly second- and third-class mail, 2. Assignment of amounts computed from administrative have been instrumental in providing one or more of the follow- records; or ing-communication of intelligence, dissemination of information, 3. Apportionment based on tests and sampling reflecting the the advancement of education and culture, the distribution of use of facilities and personal services for each class of mail or articles of commerce and industry, and the growth of many com- category for special services. mercial enterprises which contribute materially to the national The tests and sampling during fiscal year 1966 were conducted at economy and to the public welfare. 500 cost ascertainment offices during four specified periods of 7 con- The mailers of second- and third-class mail are required to process secutive days each. and present their mailings as directed by the Postmaster General. On January 1, 1967, the Post Office Department installed a new The steps involved in the preparation by the mailer represent, in most system for collecting data on revenue, pieces, and weight of mail, by cases, at least one-half of the mail-handling steps. In the case of first- classes of mail and type of service. This new system is based on class mail, all of these steps are performed by postal employees. The probability sampling. material which follows highlights this point. Under the new method of probability sampling, the Department employs random samples of the mail. The data-collection effort is dispersed throughout the entire year, thereby reflecting daily and seasonal variations. The old method concentrated data collection during 4 weeks of the year, one in each calendar quarter. Under that 16 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 17 MAIL PROCESSING FUNCTIONS PERFORMED BY POSTAL EMPLOYEES PERCENTAGE OF POSTAL COST COVERED BY REVENUE, 1926-66 1 1st class 2d or 3d class (bulk) Air Con- Fourth class Year First Air parcel Second Third trolled 1. Acceptance: class mail 2 post class class circula- Books Library a. Bulk deposits by patron (platform or window) I. Acceptance: tion material b. Lobby drop or collection box a. Bulk 1. Collection by postal employee 1. Mailer brings to weighing unit (for computation of postage) 1926 129.8 29.2 97.5 2. Plant acceptance and loading (confined 1930 129.0 34.9 25.5 74.1 II. Initial preparation by post office at city of mailing: to very largest mailers) 1935 150. 1 52. 4 18.8 72.2 38. a. Cull and face (or batch) (except metered mail II. Initial None preparation by post office at city of mailing: 1940 154. 67.2 22.6 74.1 25.3 41.0 which represents about 50 percent) 1945 164.6 163.8 20.1 76.8 77.1 65.6 b. Cancel (except metered mail, 50 percent) 1950 111. 4 67.9 47.5 18.6 52.7 71.5 34.4 III. Outgoing sorting: 1955 106.9 119.2 160.8 22.0 61.0 77.7 59.8 29.0 a. Separation to destination post offices (except III. Outgoing sorting: 1958 88.9 107.8 166.5 18.7 47.1 69.3 54.9 25.5 patron separated mails) a. None (except minimal amounts of States or 1959 110.4 116.7 161.9 18.5 57.6 69.3 60.1 24.0 mixed States mails where volume is not 1960 108.2 114.5 160.4 19.7 62.1 72.7 59.5 21.4 IV. Pouching: sufficient to require presorting by mailer) 1961 100.7 113.2 165.8 20.1 63.2 64.1 53.2 18.8 a. All outgoing mails IV. Sacking: 1962 100.6 113.5 165.6 20.7 64.8 62.5 52.2 19. a. None (except when less than 1/3 of sack is 1963 107.9 116.6 168.5 21.6 64.5 62.2 51.4 19.3 involved where mailer is not required to 1964 116.3 119.2 165.3 22.6 68.1 60.0 51.5 18.2 sack to destination city or to sectional 1965 111.6 122.9 168.0 23.9 65.1 61.3 48.6 17.4 V. Transportation: center) 1966 (adj.) 103.0 121.3 174.5 23.3 62.9 57,9 44.5 15.8 a. Train V. Transportation: H.R. 7977 as introduced 123.3 128.1 159.5 28.4 80.3 73.1 51.9 40.7 b. Truck a. Train Reported bill 123.3 138.9 162.4 29.0 82.4 73.1 51.9 40.7 c. Air b. Truck VI. Incoming sorting by delivery post offices: a. Primary VI. Incoming sorting by delivery post offices: 1 Does not include public service allowance. a. Primary, only where volume is insufficient for 2 Includes air parcel post beginning in 1949. b. Secondary mailer to presort to 5-digit ZIP code VII. Local transportation to delivery carrier: b. Secondary a. Manual to carrier's case at same postal unit VII. Local transportation to delivery carrier: NONMACHINABLE MAIL b. Vehicle to carrier's case at station a. Manual to carrier's case at same postal unit VIII. Delivery by carriers: b. Vehicle to carrier's case at station a. Sortation in sequence of delivery VIII. Delivery by carriers: b. Delivery to address a. Sortation in sequence of delivery The provisions recommended by the Postmaster General and in- b. Delivery to address cluded in H.R. 7977, defining "nonmachinable mail" and the provi- sions imposing a surcharge on such mail, all have been eliminated Establishment of the rates to be charged for postal services is from the bill as reported. only partially a problem in financial management. Much more im- The Postmaster General recommended provisions (section 4, 9(c), portantly, it is a problem in specifying or respecifying national and 9(d), of H.R. 7977) which defined such size mail to mean mail public policy. Important segments of commerce and industry, and which has size dimensions greater than 53/4 inches wide or 11½ inches important segments of social activity, have grown up around the long, nonuniform thickness or thickness which exceeds one-quarter postal service and its rate structure over the years, and it is fair inch, and ratio of width to length of less than 1 to 1.414. Extra to say that there is now and has long been a built-in interdependence charges were recommended on nonmachinable first-class mail and which must always be carefully considered when postal rate revision nonmachinable airmail weighing not more than 2 ounces; on non- is proposed. Also, of course, there is a built-in tendency for mail machinable size matter weighing not more than 4 ounces mailed at users to defend the status quo, or even simply to delay the the third-class single piece rate; on nonmachinable size merchandise effectiveness of change. Drastic or sudden revision of the postal samples; and on all nonmachinable size pieces subject to the third- rate structure could produce wholly unwanted side effects, as many class bulk minimum piece rates. interested parties are quick to point out whenever it is suggested The committee did not have an opportunity to examine these pro- that there should be a rate revision. visions in depth or to take extensive testimony from the Department in There are classes of mail which are carried at revenue rates that justification of the recommendation. The Department witnesses stated do not contemplate full recovery of cost. There are classes of mail that the purpose of the standards of nonmachinability and the sur- which are carried at revenue rates intended to provide full cost charges was not to raise additional revenue but to discourage the use of recovery but not more than that. There are classes of mail, or classes envelopes and other pieces of mail that cannot be readily handled by of auxiliary service, that produce no revenues at all, these being postal machinery or that create other mail processing or delivery deemed necessary or desirable public services to be paid for with problems. money raised by general taxation. And then there is the first-class The witnesses that testified before the Subcommittee on Postal mail service which produces revenues from which, in the view of Rates, who had vital interests in these provisions, unanimously many people, something more than cost recovery should be expected. recognized and supported the proposition that mechanized mail Based on all of these factors, the Congress has encouraged the use handling operations will require standardization of sizes of mail, and rates. of second- and third-class mail through reasonable and special postal most witnesses indicated a willingness to pay a fair surcharge to cover the real difference in cost between machine and hand operations. As evidence of the congressional rate-fixing policy, the historical The recommendation seeks to resolve a question of machinability relationship among the various classes of mail is shown in the table through the device of increasing postal rates, but cost figures to justify which follows. those rates are not available, nor was convincing testimony presented 82-911 0-67-2 18 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 19 as to the machinability or the nonmachinability of any particular Our recommendations concerning these rates must await size of mail. Moreover, the committee was not advised of any justi- another year's experience in the use of machine versus hand fication for applying the "machinability" standards to third-class methods and upon a more widespread use of machines in mail which, in most instances, is not processed by machinery. post offices. By presenting recommendations to the Congress Several witnesses presented evidence which raised grave doubts as in 1961 and by giving several years' advance notice of regula- to whether the sizes recommended can be justified. tions of mail size and other characteristics to be effective The subcommittee developed, considered, but delayed for further July 1, 1961, a suitable period for public consideration and study, provisions which would have defined "standard-size mail." for adjustment of inventories, production, and other market It was the unanimous view of the Subcommittee on Postal Ratess operations will be provided. which was agreed to by the full committee, that the provision, recommended by the Postmaster General should be eliminated from Legislation this legislation. The Department, by administrative action, can adopt The committee is convinced that a careful and complete study regulations establishing categories of nonmailability and of should be undertaken before dimensional characteristics of mail are machinable versus nonmachinable mail. Rate differentials prescribed, either by law or by regulation, or before surcharges are applying to machinable and to nonmachinable mail will re- imposed for mail not within such characteristics. quire legislation which will be recommended at the appro- The committee wishes to emphasize that it has long recognized priate time. the need for standardization of mail. The problems concerning stand- In accordance with our assurances to you when these ardized mail were a subject of considerable concern to the committee matters were first taken under advisement a year ago, we in connection with the review by the committee of the postal systems wish to point out that no action will be taken on these of certain European countries (H. Rept. 1226, 89th Cong.). decisions until you have had an opportunity to study this As early as 1948, Public Law 900, 80th Congress, prescribed a letter and at that time we will be happy to discuss the matter penalty rate for odd-sized third-class mail. The Postal Rate Act of with you at your convenience. 1958 (Public Law 85-426), enacted May 27, 1958, increased the rate With this background in mind, it becomes readily apparent that the for the odd-size category third-class mail from 3 to 6 cents per piece. problem relating to the dimensional characteristics of mail has been Also, section 210 of the 1958 act required the Postmaster General to batted back and forth for over 20 years, and the time is long since conduct a thorough investigation and study of the feasibility of past when it must be resolved by the Congress and the Post Office establishing by regulations of the Postmaster General standard sizes Department. The committee intends to conduct a thorough study for first- and third-class mail, and additional charges for mail not of this problem at the earliest practicable time. within those standards. The increase from 3 to 6 cents was due to take effect August 1, 1958. JUSTIFICATION FOR POSTAGE REVISIONS However, Public Law 85-893 postponed the effective date until May 1, 1959, because of a serious problem which arose with regard to the FINANCIAL SUMMARY catalog mailings by seed and nursery companies. Public Law 86-56 revised the minimum per piece charge from 6 to 3½ cents, because The Post Office Department's net operating loss in fiscal 1967 mailers of odd-sized pieces weighing not more than 1 ounce began to was $1,148 million, up from $942 million in fiscal year 1966. These mail their pieces at the lower 4-cent rate for first class. The 3½-cent amounts must be financed from general funds of the Treasury. penalty rate continued until 1962, when it was eliminated by the Of the total 1967 déficit, $557 million was estimated as public service Postal Rate Act of 1962 (Public Law 87-793). costs. These costs, enumerated in the Postal Policy Act (39 U.S.C. The Postmaster General's report required by the 1958 act was 2303), are associated with services performed by the Post Office submitted on March 11, 1959, and includes the following recom- Department to benefit the Nation as a whole rather than any one mail mendations: user group. The difference between public service costs and the Treas- (b) With respect to machinability.-Since the Department's ury financing-$591 million-is termed the postal deficiency. The Department's "Survey of Postal Rates," submitted to the objective is to develop machines with which to handle larger Congress on April 15, 1966, (H. Doc: 420, 89th Cong.) anticipated volumes of future mail and since it is essential that mail of the future conform to machine use, the Department will rec- a postal deficiency of $187 million. The much higher deficiency estimated at this time is largely the result of the following devel- ommend to the Congress at its session beginning in 1961 that a differential in rates be established which will give prefer- opments: 1. Higher postal salaries and fringe benefits approved in July ence to mail which the Department, by administrative action, 1966 (Public Law 89-504). shall have declared machinable. 2. Higher operating costs imposed by the terms of Public Mail not conforming to machinable categories would take Law 89-301, which greatly reduced flexibility in scheduling higher rates since the time and labor cost of handling, sorting, personnel and caused high turnover with attendant costs of canceling, etc., will justify such higher rates. recruiting, training, and loss of efficiency. 20 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 21 3. Delay in enacting parcel post rate and size-weight increases Comparing revenues and fully allocated costs, for fiscal year 1966, (Public Law 89-593). These were expected to net $107 million before and after crediting public services, the principal cost-revenue in fiscal 1967. Instead, the gain will be about $31 million. relationships are as follows: 4. Unanticipated volume increases. While volume increased in all major classes of mail, impact on postal finances was particu- [Dollar amounts in millions] larly severe in rate-deficient services. On top of a 5.2-percent increase in all mail in fiscal 1966, an increase of about 4.5 percent Cost coverage (percent) Revenue is now expected for fiscal 1967. Service Revenues Costs deficiency Before After or surplus public public The postal deficiency services services The following analysis of the postal revenue deficiency is based on First class $2,333.9 $2,266.2 +$67.7 103. 0 (1) estimates of costs and revenues for fiscal 1967 experience. On that Airmail 277.0 228. 4 +48. 6 121. 3 (1) Second class 126. 3 542.5 -416.2 23. 3 35. 2 basis, the key figures are: Controlled circulation 18.9 32. 7 -13.8 57.9 (1) Third class Millions 681.6 1,082.8 -401. 2 62.9 69. 3 Fourth class 870.8 968.6 -97.8 89. 9 97. 5 Treasury financing $1, 148 International 157. 9 174.5 -16.7 90. 4 90. 6 Less public service costs 557 Special services 278.3 333.2 -55.0 83. 5 100. 0 Postal deficiency 591 1 Not applicable. Revenues from second- and third-class mails are far below allocated costs. Moreover, while revenues from first-class mail currently exceed While first class and airmail have a combined surplus of $116.3 costs, a 3-year downtrend in cost coverage has narrowed the surplus million, cost coverage is at its lowest level since 1962, just slightly from that service to a level that is incom patible with Postal Policy above the breakeven point. Act guidelines. These require first-class revenues to cover costs plus The favorable 121-percent cost coverage for airmail is mainly the "an additional amount" for the value of preferential service. result of a 175-percent cost coverage for air parcel post. Stripping out that service leaves a cost coverage on other airmail of only 105 percent. Pinpointing the Postal Deficit Second- and third-class mail have revenue deficiencies of $416.2 million and $401.2 million, respectively, including losses offset by i$ MILLIONS) public service allowances. Thus, these services account for about 80 percent of the total adjusted deficit figure of $1,009.7 million. Reflecting these sizable deficiencies, second class has a cost coverage $116 REVENUE SURPLUS of only 23.3 percent before public service costs. Third-class cost coverage is 62.9 percent. The fourth-class deficiency of $97.8 million is attributable largely to SPECIAL INTERNATIONAL special rates for parcels of books and recordings. After anticipating the 2ND CLASS 3RD CLASS 4TH CLASS SERVICES MAIL full effects of Public Law 89-593, enacted September 20, 1966, the 1ST CLASS SPECIAL RATE & AIRMAIL $100 $75 $17 deficiency for zone-rate fourth-class mail (parcels and catalogs) is PUBLIC $23 PARCELS $55 down to $22.6 million, from $107.1 million a year ago. SERVICE COSTS CATALOGS $184 $98 The deficiency reported for special services, $55 million, is identified as a public service charge. International mail recorded a deficit of over $16 million in fiscal 1966 and prompted the Department to seek rate revisions in surface $301 OTHER and airmail rates through administrative procedure. These were DEFICIENCY effective on May 1, 1967, except for publications mailed to Canada. $232 For such publications, increases will be phased in two steps: On November 1, 1967, and November 1, 1968. Public service costs $401 REVENUE DEFICIENCY $416 On a fiscal 1966 adjusted basis, $547 million-about 54 percent of the entire postal deficit-is identified as public service cost in accord- ance with the provisions of the Postal Policy Act. In the Postal Policy Act of 1958, as amended in 1962, Public Law 87-793, the Congress directed that revenues must be kept in line with the total allocated cost of operating the postal establishment less the amount deemed to be attributable to the performance of public services. 22 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 23 A breakdown of fiscal 1966 (adjusted) public service costs, shown in SPECIAL SERVICES the table below, indicates that free or reduced-rate postage accounts [1966 adjusted basis, in thousands of dollars] for about 66 percent of total public service costs. Operating costs for third-class offices and star routes, fourth-class post offices and rural Public routes account for just over 19 percent. The balance is attributable Revenues Costs services to losses incurred in performing special services, nonpostal services, Registry 36,002 51,994 -15,992 and to the premium cost of employing foreign-flag air carriers. Certified 15,263 16,609 -1,346 Insurance 46,495 39,556 +6,939 Collection-delivery 15,014 27,956 -12,942 Amount Percent Special delivery 35,805 69,038 -33,233 (millions) Money orders 68,860 71,975 -3,115 Postal savings 4,527 2,829 +1,698 Stamped envelopes 20,340 20,707 -367 1. Total loss resulting from the transmission of matter in the mails free of postage or at Box rents 35,960 32,555 +3,405 reduced rates of postage $361. 8 66. 1 2. 10 percent of the gross cost of the operation of 3d-class post offices and the star route Total 278,263 333,219 -54,955 system, and 20 percent of the gross cost of the operation of 4th-class post offices and rural routes 105. 5 19. 3 3. Loss incurred in performing nonpostal services 24. 5 4. 5 4. Loss incurred in performing special services. 55. 0 10. 1 5. Additional cost of transporting U.S. mail by foreign air carriers at a Universal Postal Union rate in excess of the rate prescribed for U.S. carriers .3 (1) Public Service Costs Total 547.1 100.0 I$ MILLIONS) $184 1 Less than 0.1 percent. CLASSROOM $7 PUBLICATIONS MAIL MATTER-FREE OF POSTAGE OR AT REDUCED RATES [1966 adjusted basis, in thousands of dollars] IN-COUNTY PUBLICATIONS Revenues Costs Public services $67 2d-class matt: 1n-county 10,148 77,368 -67,220 T 8,305 118,248 -109, 943 $106 Nosprofit publications $100 Classroom publications 1,469 8,045 -6,576 Total second class 19,922 203,661 -183,739 3d-class mail: Bulk-rate nonprofit 36,881 136,394 -99,513 $75 4th-class mail: Special-rate -75,205 NONPROFIT NONPROFIT 55,369 130,574 Diplomatic mail 401 -401 PUBLICATIONS ORGANIZATIONS $55 Free for the blind 2,943 -2,943 $110 Total 112,172 473,973 -361, $28 NONPOSTAL SERVICES FOR OTHER AGENCIES [1966 adjusted basis, in thousands of dollars] Revenues Costs Public 2ND CLASS RURAL 3RD CLASS 4TH CLASS SPECIAL OTHER services OPERATIONS (SPECIAL RATE) SERVICES Estimated current basis FCC health service 5 5 Alien address reporting 280 292 -12 U.S. savings bonds and stamps, public sales 709 703 +6 Civil Service 1 5,786 -5,786 Mail volume Documentary stamps 391 -391 Migratory bird stamps 119 167 -48 Mail volume increased 5.2 percent in fiscal 1966, reaching a level Official mail messenger service 408 -408 Building services for other agencies 764 17,580 -16,816 of 75.6 billion pieces. A further substantial rise to about 79 billion Transportation of military mails 79,855 79,855 Miscellaneous items, other agencies 132 1,192 -1,060 pieces is expected in fiscal 1967. In the 20 years since 1946, mail volume increased some 40 billion Total 81,864 106,379 -24,515 pieces, more than in all the preceding years since establishment of the 1 Does not include functions related to the postal service performed for the Civil Service Commission, estimated at 1/3 postal service. This unusual rise in mail volume was reflected in a of total costs. significant per capita increase in the mails. In 1946 an average of 258 pieces of mail was dispatched for each person in the United States; by 1966 that count had risen to 386, an increase of about 50 percent. 24 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 25 MAIL VOLUME, PERSONAL INCOME, POPULATION MAIL VOLUME PER CAPITA Index (1946-50 100) Pieces 200 per capita 375 180 350 160 325 Mail Volume 140 Personal Income 300 (Constant $) 120 Population 275 100 250 0 1946 1950 1955 1960 1965 0 FY 1946 1950 1955 1960 1965 Not all mail volumes have changed uniformly. Parcel post, for example, experienced a sharp downtrend after 1951. Congressional FIRST CLASS AND AIRMAIL limitations on size and weight of parcels, higher rates, and diversions to private carriers were the main causes of the decline. In contrast, Following the rate increase of January 1963 (Public Law 87-793), the volume of special rate fourth-class mail-mainly books and re- the revenue surplus from first-class mail dropped from $295 million cordings-has risen sharply. Preferential rates, increased college in fiscal 1964 to $68 million on a 1966 adjusted basis. Concurrently, attendance, the affluence of our society, and intensive promotional cost coverage dropped from 116 percent to 103 percent. This decline efforts of book and record clubs all contributed to impressive volume in revenue surplus reflected rising costs, largely the result of three gains. increases in salary and fringe benefits for postal employees. Third-class mail, which is largely advertising matter, has continued to increase at a faster rate than most other mails. From 1953, the total volume of third-class mail has risen 69 percent. In contrast, all other mails increased only 42 percent. These disparate changes had a marked effect on the mix of mails during that period. Third- class mail accounted for 23.6 percent of all volume in 1953; but in 1966 it had risen to 26.9 percent of the total. Divergent rates of growth in the various classes of mail and the consequent shifts in mail mix had a significant impact on the Depart- ment's mounting level of deficit financing. The fastest growth took place in the rate categories, in each class, having the lowest revenue- cost relationships. 26 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 27 COST COVERAGE ON FIRST CLASS MAIL FIRST CLASS MAIL VOLUME Revenues as Percent of Allocated Costs Percent - of Pieces) 140 40 Rate Increase 130 30 120 20 PERCENT Rate of Growth 8 110 Rate Increase 6 4 100 10 2 0 1947 1950 1955 1960 1965 FY 1946 1950 1955 1960 1965 FY 1946 1950 1955 1960 1965 1986 Adjusted for known cest and revenue changes 3-year moving avarage, advanced one year The Postal Policy Act guideline for first-class mail requires that SECOND-CLASS MAIL postage cover costs plus "an additional amount" to reflect the value of preferential service. Clearly, the 3-percent revenue surplus fails The revenue deficiency for second-class mail in fiscal 1966 is over to meet that standard. Moreover, that modest surplus is earned $416 million on an adjusted basis, before public service allowances are mainly on heavier pieces and the 5-cent rate fails to cover costs on subtracted from costs. This record deficiency is reflected in a cost most 1-ounce letters. It is conceivable, recognizing cost-increase coverage of less than 24 percent for the entire class, the lowest among trends, that cost coverage in the next several years would fall below all major mail classes. 100 percent, as it did in 1958. Adjusted postal revenues from second-class mail are $126 million. Annual volume growth between fiscal 1958 and 1965 ranged between In contrast, transportation costs alone are $58 million, leaving only 0.2 percent and 3.2 percent. In 1966, however, volume surged upward $68 million to meet additional expenses of $485 million for mail han- more than 6 percent, reaching a high of 40.4 billion pieces. A further dling, carrier deliveries, and other expenses. substantial increase is now evident for fiscal year 1967. Although rate increases since 1951 have been fairly steep, percent- In airmail, the excess of revenues over costs increased $12 million agewise, they have not been large enough to offset the rise in costs. last year, raising the 1966 (adjusted) surplus to $48.6 million. This When cost coverage is greatly deficient-as it is in second class-cost was mainly attributable to a $39 million surplus for air parcel post. increases must be met by much sharper percentage increases in rates, Cost coverage for all airmail is currently 121 percent. But after just to avoid losing ground financially. excluding the highly profitable air parcel post service, cost coverage Full recovery of costs is not a congressional objective in second-class on all other airmail is only 105 percent. In these circumstances mail. In this instance, the Postal Policy Act continues the long- revenues from most 1-ounce airmail letters are insufficient to cover standing practice of differential pricing among the several classes of their fully allocated costs. mail. Rates in each class of mail are expected to range above and below costs in accordance with value of service. In addition to priority of service and the intrinsic value of the mail, the Congress has given great weight to the contribution of each mail class to the social and economic betterment of the Nation. In formulating its proposed rate revisions, the committee has given full recognition to this concept. The deficits for the five separate rate categories closely relate to their respective volumes, as indicated below: 28 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 29 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 SECOND CLASS MAIL VOLUME Deficiency 1 Percent Percent (millions) of total of pieces deficiency BILLIONS OF PIECES 10 Regular-rate publications $236.3 56.2 54.8 In-county mail 267.2 16. 0 16.9 Publications of nonprofit Organizations 2 109. 9 26.1 26.6 Classroom publications ²6.6 1.6 1.3 Transient matter 4 .1 .4 Rate Increase 8 Total 3 416. 2 100.0 100.0 1 Adjusted for full-year effect of known cost and revenue changes. 2 Before public service credits. PERCENT Rate of Growth* 3 Includes $4,300,000 of revenue credits not distributed to rate categories. 10 6 8 Second Class Mail 6 4 ($ MILLIONS) 4 $542 2 THE REVENUE DEFICIENCY¹ 0 2 CLASSROOM $7 -2 1947 1950 1955 1960 1965 OTHER COSTS $358 23% COST COVERAGE¹ IN-COUNTY FY 1946 1950 1955 1960 1965 MAIL . 3-year moving average, advanced one year $67 REGULAR-RATE MAIL MAGAZINE AND NEWSPAPER VOLUME* $236 BILLIONS OF PIECES $126 NONPROFIT 4 PUBLIC PUBLICATIONS SERVICES $110 $184 Magazines COSTS REVENUE 3 $416²/ Newspapers 1/ Before public service credits 2/ Includes $4 million of revenue credits Estimated current basis Growth of second-class mail 2 While the rate of volume growth trended downward from 1947 to 1955, there has been a reversal in the last decade. Volume growth has been generally upward since 1955. Many factors contributed to that uptrend, including higher disposable personal income, more families, more leisure time, and increased school and college enrollment. But 1 the upward trend was also the result of greater emphasis by publishers on magazine subscriptions rather than newsstand sales. This was reflected in promotional pricing efforts aimed at expanding advertising revenues through greater subscription circulation. FY 1946 1950 1955 1960 1965 Excludes classroom and nonprofit publications 30 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 31 As the accompanying chart shows, there has been a shift in second- these, some 200 account for nearly 60 percent of copies mailed and class mail mix over the past 20 years. The major share is now in almost 70 percent of their weight. Partly because postage is unrelated to distance, nonlocal copies magazines rather than in newspapers. of these publications are hauled an average of 838 miles compared Regular-rate publications with only 358 miles for regular rate, second-class mail. Also, many stems from publishers' zone-rate mailings of "outside the county" In order of magnitude, the largest share of the second-class deficiency of the nonprofit publications carry substantial amounts of advertising, resulting in an unfavorable advantage over taxpaying commercial matter. Cost coverage is higher than for second class as a whole: 29.3 publishers because of the competition from a source that is subsidized percent versus 23.3 percent, before public service credits. But, because it through reduced postage and tax preferences. 55 percent of the second-class mail volume is in this rate category, On also accounts for most of the second-class revenue deficiency. a 2d-class mail: Nonprofit publications 1966 adjusted basis, the deficiency attributable to publications in [Definition: Publications of religious, educational, scientific, philanthropic, agricultural, labor, veterans, this classification is $236 million. fraternal organizations, and REA cooperatives. Major users: Churches, schools, labor unions, fraternal orders, scientific societies, veterans' organizations, Scouts.] Faced with this peak revenue gap, the committee is proposing rate increases based on costs, value of service, and equity. Costs million 1 $118. 2 In regard to value of service, it should be noted that a substantial Revenues do $8.3 Average cost per piece cents 15.1 part of this mail receives expedited handling. All newspapers-repre- Average revenue per piece do .4 senting 38 percent of regular rate second-class pieces-receive time- Average weight per piece ounces 2.8 expedited handling. In addition, news magazines and other Average nonlocal haul miles 838 value publications receive the equivalent of "newspaper treatment," Annual volume billion pieces 2.3 1 Before public service credits. without paying any additional charge. 2 Including copies of nonprofit publications mailed at "in-county" rates. 2d-class mail: Regular-rate publications Within-county mail [Definitions: Major users: All Mainly except mass circulation magazines and business publications. Some hometown reduced-rate publications mailed for delivery outside counties of publication. papers.] On a current basis, fully allocated costs exceed revenues by about millions of dollars 334. 1 $67 million yearly and the full amount of that deficit is added to Costs do 97. 7 public service costs. This represents the third largest share of the Revenues cents 7.1 second-class deficiency. Before reflecting these public service costs, Average cost per piece do 2.1 Average revenue per piece 7.7 revenues are equal to about 13 percent of fully allocated costs. ounces Average weight per piece miles 358 There were roughly 1.5 billion pieces of "within-county" matter Average nonlocal haul percent 51 mailed in fiscal 1966, or 15 percent of all second-class mail. (These Advertising content billion pieces 4.7 excluded mailings of nonprofit and classroom publications.) Annual volume This mail has continued to grow over the long run even though Publications of nonprofit organizations population has been shifting steadily from rural to urban areas. With Second-class mailings in this category include publications of a burgeoning suburban population, demand for community newspapers religious, educational, scientific, philanthropic, agricultural, enacted labor, has now increased to a point where there is a substantial increase in veterans, and fraternal organizations. To this list, legislation paid circulation, mostly in the areas around metropolitan cities. in 1962 added the publications of associations of REA cooperatives of and one publication by the official highway or development agency 2d class: In-county mail [Definition: All publications delivered to subscribers in home counties. Major users: Hometown news- any State. During fiscal 1966, mailings by authorized nonprofit organizations, accounted papers in rural areas.] Costs million 1$77.4 including their in-county copies, were 2.3 billion pieces and Revenues do $10.1 for more than 26 percent of all second-class mail. These mailings also Average cost per piece cents 15.3 accounted for over a fourth of the second-class mail deficiency. The Average revenue per piece do .7 Average weight per piece ounces 5.1 "total loss" incurred in handling these publications-$110 million-is Annual volume billion pieces ² 1. 5 earmarked as a public service cost. 1 Before public service credits. Volume growth has been particularly rapid in recent years. In the 2 Not including copies of nonprofit and classroom publications delivered within counties of publication. last 7 1959 to 1966, mail pieces increased from 1.5 to 2.3 billion, a 53-percent years, gain compared with 14 percent for all other second-class These trends point up how in-county rates are being turned to different ends than Congress envisioned more than a century ago when mail during the same period. Cost coverage is the lowest among all mail categories. In the past at in-county rates were first established. While these rates were intended 10 years it has ranged between 7.0 and 8.7 percent. It is currently to help the rural press, volume growth is taking place largely around metropolitan areas. the lower end of that range. There are some 10,000 publications that are authorized to be mailed at the special rates for nonprofit organizations. But among 32 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 33 Classroom publications Very frequently the 24-page requirement could be met, not by The adjusted fiscal 1966 revenue deficiency in this rate category adding to content of publications, but simply by transforming format amounts to $6.6 million and the entire amount is credited to public into more pages of smaller size. service. Cost coverage is about 18 percent before public service As evidence of the major shifts that are taking place, apparently allowances. due to rate anomalies, the volume of controlled circulation pieces These include about 140 classroom publications covering religious, increased about 110 percent in 4 years, since 1962. Currently volume educational, and scientific magazines and pamphlets. They amount is close to 350 million pieces annually. to about 1 percent of second-class volume in pieces and weight. When evidence of these major shifts became apparent, the Depart- Transient matter ment undertook a series of field surveys in order to get a clearer picture of where the volume increases. were centered. The fifth and smallest category of second-class mail consists of A study conducted by the Department in 1966 indicated there were "transient" matter-generally publications not entitled to publishers' 882 different publications identified with the controlled-circulation bulk rates. These publications have been charged higher rates of classification. Similar studies in earlier years indicated there were postage than other second-class matter. about 700 publications employing that mail service in 1964 and only In fiscal 1966, transient matter produced adjusted revenues of $4.4 600 in 1961. Significantly, the increases in recent years occurred million and adjusted costs of $4.8 million resulting in a cost coverage despite the demise of a very substantial number of publications that of over 92 percent. The deficit portion is not credited to public service. appeared in the first and second studies. CONTROLLED CIRCULATION PUBLICATIONS THIRD-CLASS MAIL On a 1966-adjusted basis, these publications account for nearly $19 After giving full effect to the latest cost increases, the revenue million in revenues and nearly $33 million in costs, resulting in a deficiency in the third-class mail service is over $401 million. Cost deficiency of about $14 million. coverage is 63 percent, before public service credits. Excluding mailings These are publications which do not qualify for second class because, by authorized nonprofit organizations, cost coverage for "regular" for the most part, addressees do not pay a subscription price. Publishers third-class mail is 67 percent. build circulation by distributing copies, without subscription charge, to selected readers. They rely on advertising as their principal revenue Third Class Mail source. Circulation is usually "controlled" and subject to independent audit so that advertisers have some guarantee of readership volume. Historically, the controlled circulation group has included mainly I$ MILLIONS) trade, technical, and industrial publications. More recently, a sub- $1,083 stantial number of shopper-guide publications have joined the group. THE REVENUE DEFICIENCY 1/ A controlled-circulation rate category was first set up in 1935 as an extension of third class, which then had an 8-ounce limit. The creation 63% of this new category permitted heavier trade publications to break SINGLE-PIECE COST COVERAGE MAIL away from parcel post. Initially, controlled-circulation rates were $32 closely related to third-class rates. But, over the years, the minimum $682 OTHER rate for controlled-circulation mail has held at 1 cent while the third- COSTS class minimum has increased to 2½ cents. $983 BULK-RATE Prior to the enactment of the 1962 rate law, the Department urged NONPROFIT ORG. $100 adoption of a minimum rate for controlled circulation to match the BULK-RATE minimum for bulk third class. The Congress rejected that proposal and REGULAR MAIL the minimum rate for controlled-circulation publications remains at 1 $277 cent. The Post Office Department has stressed that shopper guides and other lightweight publications had found the controlled-circulation classification a profitable escape from the higher third-class minimum PUBLIC $100 SERVICES rates. The recent increase in third class furnished an even greater incentive for that diversion. COSTS REVENUES Publications formerly mailed as third class were able to shift to $401 controlled circulation when they met the following major requirements: 1/ Before public service credits Estimated current basis 1. Issued regularly, at least four times yearly. Includes $8 million of revenue credits. 2. Contained at least 25 percent nonadvertising. 3. Contained 24 or more pages. 82-911 0-67-3 34 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 35 In 1958, cost coverage for third class was only 47 percent. But 3d class: Bulk-rate regular mail there has been a significant upward trend since then, aided by an (Definition: Quantity mailings of circulars, newsletters, shopper guides, booklets, small catalogs, seeds, increase from 1½ cents to 2½ cents in the minimum rate. Nevertheless, merchandise samples, coupons, and other matter weighing less than 1 pound per piece. Major users: Advertisers, seed and plant wholesalers, State and local governments. Largely a mass-advertising medium. owing to volume increases, the current revenue deficiency for third- But many small business firms use direct mail as their only economical advertising medium.] class mail is at a record high. Costs million $713. 3 Third-class mail volume Revenues do $436. 2 Average cost per piece cents 5.1 Among the major classes of mail, volume growth in third class has Average revenue per piece do 3.1 led all others. For example, in the period from 1953 to 1966, third-class Average weight per piece ounces. 1.5 volume rose 69 percent, compared with a 42-percent increase for all Annual volume billion pieces 14. 1 Bulk permit holders estimated other mails combined. As a result, third class now accounts for about 169, 000 27 percent of total volume in contrast with nearly 24 percent in the Bulk-rate nonprofit mail earlier year. While growth has been steep, there has been a marked The revenue deficiency in this mail class, fully covered by public slowing of the uptrend in recent years. service allowances, is nearly $100 million annually, on a 1966 adjusted basis. Cost coverage is about 27 percent. THIRD CLASS MAIL VOLUME Eligible mailers number about 82,000 in eight different organiza- tional categories. In 1966, these nonprofit organizations mailed about MILLIONS OF PIECES 2.9 billion pieces, largely at the minimum rate of 1½ cents per piece, 20 the same rate that has been in effect for such mailings since July 1, Rate Increase 1960. For heavier pieces, pound rates are half the rates for comparable mailings at regular bulk rates: 9 cents for circulars and merchandise, and 6 cents for books, catalogs, etc. Third-class mailings by nonprofit organizations increased nearly 15 280 percent in the period from 1953 to 1966. In contrast, the volume of other bulk-rate third-class mail rose 56 percent. Mailings by these organizations now account for about 17 percent of all bulk-rate third- class mail compared with only 8 percent 13 years ago. PERCENT Rate of Growth 3d class: Bulk-rate nonprofit mail 16 10 [Definition: Quantity mailings for fundraising appeals, Institutional newsletters, reports, booklets, and meeting notices. Major users: Religious, educational, scientific, philanthropic, agricultural, labor. veteran 12 or fraternal organizations or associations not organized for profit.] Costs million 1 $136. 4 Revenues do $36. 9 8 Average cost per piece cents 14.8 5 Average revenue per piece do 1.3 4 Average weight per piece ounces 7 Annual volume billion pieces 2.9 Bulk permit holders (estimated) 82, 000 0 1947 1950 1955 1960 1965 1 Before public service credits. Single-piece-rate mail FY 1946 1950 1955 1960 1965 Annual volume in this subcategory is 3.3 billion pieces, roughly *3-year moving average, advanced and year 16 percent of all third-class-pieces. Present rates, fixed in 1962, are 4 cents for 2 ounces and 2 cents for Bulk-rate regular mail each additional ounce. Cost coverage is 86.2 percent, leaving an annual Mailings in this rate category are largely advertising circulars. But adjusted revenue gap of nearly $32 million. they also include mailings of newsletters, shopper guides, booklets, small catalogs, merchandise samples, seeds, coupons, and other matter 3d class: Single-piece mail weighing less than 1 pound per piece. [Definition: Greeting cards, small parcels, printed matter, booklets, and catalogs. All mail weighing less The volume of these mailings has increased 56 percent between 1953 than 1 pound not included in any other mail class. Major users: Mail order companies for small parcels and single catalog mailings. General public for greeting cards and small parcels.] and 1966 and totaled over 14 billion pieces in the latter year. Of that Costs million $233. 1 number, 90 percent were mailed at minimum-per-piece rates. Revenues do $200. 9 On a fiscal 1966 adjusted basis, the revenue deficiency recorded for Average cost per piece cents 7.0 these mailings-at minimum-per-piece and bulk-pound rates is $277 Average revenue per piece do 6.0 million. Cost coverage is 61 percent. Average weight per piece. ounces 1.7 Annual volume billion pieces 3.3 36 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 37 FOURTH-CLASS MAIL The size of the current revenue deficiency for special-rate parcels On a fiscal 1966 basis, adjusted for known changes in revenues and may be reason enough to increase their postage. Moreover, these costs, fourth-class mail services operate with a deficiency of nearly special rates are being used in large measure to subsidize entertain- $98 million. ment rather than education. Fourth-class special-rate mailings 4th class: Special-rate mail The largest losses are incurred for handling special-rate materials, Definition: Books, sound recordings, manuscripts, academic theses, printed music, periodicals, 16-milli - consisting mainly of books and recordings. The deficiency here is over meter films, filmstrips, transparencies, slides, microfilms, scientific or mathematical kits, catalogs, and guides for some of these. Major users: Book publishers, book clubs, record clubs, book dealers, libraries, $75 million on a 1966 adjusted basis, the entire amount chargeable schools, and other educational institutions.] to public service costs. Costs 1 $130.6 million. Although volume is still relatively small, it increased some 135 Revenues $55. 4 million. percent after 1958, under the combined impetus of changes in mail Average cost per piece 1 59.7 cents. classification, growing membership in book and record clubs, the Average revenue per piece 25.3 cents. Average weight 3 pounds, 12 ounces. boom in college attendance, and low postage rates. In 1966 mailings Annual volume 219 million pieces. at special rates totaled about 219 million pieces: 203 million at the 1 Before public service credits. general rate and 16 million at the library rate. EXPLANATION OF TITLE I BY SECTIONS $130 Fourth Class Special-Rate Mail TITLE I-POSTAL RATES I$ MILLIONS) Section 101. First-class mail Subsection (a) rewrites sections 4252 and 4253, title 39, United OTHER States Code. COSTS 42% THE REVENUE DEFICIENCY 1/ Section 4252 provides a maximum size for first-class mail of 100 $55 COST COVERAGE y inches in length and girth combined and a maximum weight of 70 pounds. Existing law prescribes a weight limitation of 70 pounds, but does not provide any maximum limitation on the size. The committee LIBRARY MATERIALS recommends such maximum size and weight limitations to correspond with the maximum size and weight limitations now provided for do- $8 $55 mestic airmail and air parcel post pursuant to section 4305. This change is recommended because the postage rates for first-class mail PUBLIC weighing more than 13 ounces will be the rates prescribed for air SERVICES $75 parcel post. GENERAL 'EDUCATIONAL' RATES Section 4253 provides a postal rate of 6 cents for each ounce or [MAINLY BOOKS & RECORDS) fraction of an ounce for first-class mail weighing 13 ounces or less $67 and a rate of 5 cents for cards. First-class mail weighing over 13 ounces will have the rates of postage established for air parcel post pursuant to section 4303(d), and shall be entitled to the most expeditious handling and transportation practicable. Thus, the rate for first-class mail weighing 13 ounces at 6 cents per ounce would be 78 cents, and COSTS REVENUES $75 under the parcel post rates such mail weighing not over 16 ounces would be 80 cents. First-class mail weighing in excess of 1 pound would 1/Before public service credits Estimated current basis be subject to the same rate system established for air parcel post. While most mailings are books and recordings, others include The expeditious handling and transportation to be given first-class mail weighing more than 13 ounces normally is expected to be air manuscripts, academic theses, printed music, periodicals, 16-millimeter films, filmstrips, transparencies, slides, microfilms, scientific kits and transportation when such transportation will speed the delivery of the catalogs. mail. This application reflects the priority mail principle and is a step The special-rate category was first set up in 1938 by proclamation toward the ultimate goal of establishing a single class of priority mail. of the President. At that time it was strictly a "book rate." But The special rate category for drop letters is eliminated. The postage nearly every rate bill since 1938 wedged additional items into that rates on such matter will be 6 cents per ounce, the same as for other letters. once-limited rate category. The biggest change took place in 1958 when recordings were added. The rate of postage on business reply mail will continue to be the same as the regular rate plus an additional charge of 2 cents for each piece weighing 2 ounces or less, and 5 cents for each piece weighing more than 2 ounces. There are no changes in these additional charges. 38 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 39 Subsection (b) of section 101 rewrites subparagraphs (A) and Such enclosures authorized by section 4365(b) are considered a part (B) of section 4169(a) (1) of title 39, United States Code, relating to of the publication for postage purposes and currently are subject to free mail for certain members of the U.S. Armed Forces and of friendly second-class postage rates. foreign nations for letters and sound-recorded communications The amendment made by subsection (d) of the bill to section 4251(a) having the character of personal correspondence. has no effect on such provisions of section 4365(b) insofar as those The existing provisions of subparagraph (A) limit the free mailing provisions relate to "orders for subscriptions." privilege to servicemen in an overseas combat area as designated by A subscription renewal notice or an order for a subscription ordi- the President. narily informs the customer, not of charges incurred as a bill does, Subparagraph (A), as amended by this bill, would extend the free but of the expiration of his old subscription and the cost of renewal mailing privilege to all servicemen when the letter or sound-recorded if the customer should elect to continue the subscription. Such a communication is mailed at an Armed Forces post office located out- renewal notice or an order for a subscription is not a bill or statement side the 48 contiguous States of the United States. of account within the meaning of this amendment. The existing provisions of subparagraph (B) authorize the free While this amendment by itself has no effect on the postage to be mailing privilege for servicemen hospitalized in a facility under the paid for a bill or a receipt enclosed with a second-class publication, jurisdiction of the Armed Forces, but limit the application to service- section 4656 of title 39, United States Code, as added by section 115 of men who are hospitalized as a result of disease or injury incurred as a this bill, will require first-class postage to be paid on a bill or a receipt result of service in an overseas combat area as designated by the mailed with a second-class publication. President. Also a question has been raised whether the words "bills and Subparagraph (B), as amended by this bill, would extend the free statements of account" would be interpreted as including invoices. mailing privilege to servicemen hospitalized as a result of disease or Pursuant to section 4555 of title 39, United States Code and injury incurred while on active duty, without regard to where the predecessor provisions of law authorizing the enclosure in fourth disease or injury was incurred. class mail of a description of the article mailed (which also applies to Subsection (c) of section 101 extends the free mailing privileges, third class under section 4453), the Department has, at least since the in a manner similar to that provided by subsection (b) for a member 1913 edition of the Postal Laws and Regulations, authorized invoices of the armed forces of a friendly foreign nation serving with the to be enclosed. U.S. Armed Forces. The amendment makes no change with respect to the enclosure of Subsection (d) amends section 4251(a), to include within the defini- invoices. tion of first-class mail "bills and statements of account." Subsection (e) repeals subsection (d) of section 4251, which con- Section 4451(b) of title 39, United States Code, now provides that tains the definition of drop letters, in order to conform with the bills and statements of account may be mailed at the lower third-class amendment in subsection (a) which removes the special rate category postage rate if produced by any photographic or mechanical process for drop letters. other than typewriting," and if 20 or more identical copies are mailed Subsection (f) makes the necessary technical adjustments in the at one time. This provision is repealed by section 107(b) of the bill. table of contents of chapter 59, to conform with the changes made For a number of years, bills and statements of account prepared by by the other provisions of this section. computers were considered as being produced by a typewriting process, and, therefore, required to be classified as first-class mail. In 1966, the Section 102. Airmail question arose as to whether matter produced by electronic data Subsection (a) of section 102 of the bill rewrites subsections (a) processing equipment should be considered as being produced by a and (b) of section 4303 of title 39, United States Code. The new typewriting process, and it was concluded that computers produced subsection (a) prescribes a rate of postage on domestic airmail weigh- matter by a mechanical process which more closely resembled printing ing not more than 7 ounces of 10 cents for each ounce or fraction and that such matter should be considered as having been produced thereof. This change represents an increase in the rate from 8 to 10 by a mechanical process "other than typewriting." Consequently, as cents, and a reduction from 8 to 7 ounces. The reduction to 7 ounces a result of the new interpretation, matter which for years had been is necessitated by the new 10-cent rate in order to keep the total rate classified as first-class mail, now, under existing law, can be mailed at for 7 ounces (70 cents) below the lowest air parcel post rate of 80 the lower third-class rate. This amendment is intended to require that cents. bills and statements of account, regardless of how produced, shall be Subsection (d) amends the definition of air parcel post contained mailed as first-class mail. in section 4301 (2) to change the "eight" to "seven" ounces to conform Concern has been expressed as to the effect the amendment made with the adjustment indicated above. by section 101(d), requiring "bills and statements of account" to The existing provisions of subsection (b) of section 4303, prescribing be mailed at first-class postage rates, will have on the provisions of the rate of postage on postal cards and post cards sent as domestic 39 U.S.C. 4365(b), which authorizes publishers and news agents to airmail, are amended to increase the rate for cards from 6 to 8 cents. enclose in their second-class publications "bills, receipts, and orders Subsection (b) of section 102 of the bill amends subsection (d) of for subscriptions." section 4303, relating, in part, to the rates of postage on air parcel post. Three changes are made in air parcel post postage rates. 40 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 41 The first is the establishment of one-half pound postage increments counties. The rates will apply to the county with which the inde- between 1 and 5 pounds, which will result in the reduction of postage pendent city is principally contiguous. on some parcels. 2. Nonprofit publications, subsection (d).-At present, a flat The second is to provide a single rate of 80 cents for all zones for rate of 1.8 cents per pound, subject to a minimum charge of 0.125 matter weighing not over 1 pound. Otherwise, the air parcel post rates cent per piece, is charged for this category of mail. The bill remain unchanged. increases the minimum charge per piece of 0.125 cent to 0.2 cent The third change is the elimination of paragraph (2) of subsection and provides a three-step increase (1968-1.9 cents, 1969-2.0 (d), which requires that first-class mail sent as air parcel post pay cents, 1970-2.1 cents) in the rate of 1.8 cents per pound for the postage not less than 8 cents an ounce for the first 8 ounces, and 5 nonadvertising portion of the nonprofit publication. Six-phase cents for each ounce in excess of 8 ounces. This requirement is no zone-based rates (1968-73) are prescribed for the advertising longer appropriate as the rates for first-class mail over 13 ounces and portions of such publications. for air parcel post are the same. 3. Classroom publications, subsection (e).-The postage on Paragraph (3) of section 102(b) strikes out subparagraphs (A), (B), classroom publications will continue to be 60 percent of the and (C) of section 4303(d)(5) of title 39, United States Code, relating pound rates and of the minimum charge per piece for regular to airlift for servicemen overseas of certain categories of mail, and outside county publications prescribed by section 4359(b). inserts new subparagraphs (A) and (B) with two substantive changes. 4. Agricultural publications, subsection (f).-Therate of 4.2 cents Subparagraph (B) of section 4303(d)(5) currently authorizes an per pound now prescribed on the advertising portion of publica- airlift for second-class news publications only when addressed to a tions mailed for delivery in zones 1 and 2 outside the county of serviceman in an overseas combat area as designated by the President. publication is continued for publications devoted to promoting The first amendment adds the second-class news publications to the the science of agriculture when mailed for delivery in zones 1 or category of mail covered by subparagraph (A), which authorizes 2. The special rate will apply only to such publications when the airlift to all servicemen outside the 48 contiguous States of the United total number of copies furnished during any 12-month period to States. subscribers in rural areas consists of at least 70 percent of the The second amendment adds surface-type official mail to the cate- total number of copies distributed. gory of mail entitled to airlift when mailed at or addressed to any 5. Publications mailed in quantities of fewer than 5,000, sub- Armed Forces post office where adequate surface transportation is section (g).-The regular rate publications mailed in quantities not available. This category of airlift was included in subparagraph of fewer than 5,000 copies for delivery outside the county of (C) of section 4303(d)(5), but the designation of the paragraph is publication will continue to be subject to a lower minimum changed to subparagraph (B) under the amendment. charge per piece, which is increased in three steps from 0.5 cent Subsection (c) of section 102 makes technical amendments in to 0.6, 0.7, and 0.8 cent. However, the existing provisions which section 4303(f) of title 39, United States Code, to conform with the prescribed a preferred rate for publications having 5 percent or new section 4170 added to title 39, United States Code, by section 116 less advertising are eliminated. of the bill. Subsections (h) and (j) of section 4358 contain conforming amend- Sections 103 and 104. Second-class mail, effective January 7, 1968 ments to include within section 4358, provisions relating to classroom publications, publications of nonprofit organizations, and the definition Sections 103 and 104 rewrite sections 4358, relating to within county of the term "zones," which are now contained in section 4359. rates for second-class publications, and 4359, relating to outside Subsection (b) of section 103 makes conforming changes in the county rates, of title 39, United States Code, to place all the preferred table of contents of chapter 63, title 39, United States Code. rate categories under section 4358, and the regular rate categories under section 4359. Section 4359, rates of postage; regular Section 4358, rates of postage; preferred No change is made in the provisions of subsection (a) of section 4359, describing the conditions that must be met before copies of a This section is amended to provide rates of postage for the following publication are entitled to second-class postage rates. publications. Subsection (b) of section 4359 provides a three-phase increase 1. Within county publications, subsection pound rate (1968, 1969, and 1970) in the pound rates and the minimum charge is increased in three steps, to take effect in 1968, 1969, and 1970. per piece for regular rate publications mailed in accordance with sub- The minimum charge per piece is increased from 0.125 to 0.2 section (a), and not subject to a preferred rate prescribed by section cent per piece. 4358. Subsection (i) of section 4358 will apply the within county rates The existing provisions of subsection (b)(2) of section 4359, relating to each publication, if otherwise entitled to within county rates, to classroom publications, subsection (b)(3), relating to nonprofit having original entry at an independent incorporated city, an in- publications, and subsection (b)(4), relating to publications mailing corporated city which is situated entirely within a county, or fewer than 5,000 copies per issue, have been included in section 4358. which is situated continguous to one of more counties in the same Subsection (c) of section 4359, relating to the portion of a publica- State but which is politically independent of such county or tion devoted to advertisements for purposes of determining that por- 42 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 43 tion of the publication subject to the advertising rate of postage, is Individual piece and bulk rate, subsection (a) amended so as to apply the provisions of such subsection (c) to publi- The individual piece rate is increased from 4 cents to 6 cents for the cations covered by both sections 4358 and 4359, and to exclude from first 2 ounces, and the 2-cent rate for each additional ounce is con- such portion the advertisements subject to the new section 4656 added tinued without change. The bulk rates per pound and the bulk mini- by section 115 of the bill. The new section 4656 requires advertising mum charge per piece are continued at the existing rates until January supplements, mailed with publications entered as second-class mail, 7, 1968, and then are increased. to pay the appropriate postage rate had such supplements been mailed Minimum rates other than with the publication. Subsection (d) of section 4359 authorizes publications to be trans- Subsection (b) of section 4452 requires all bulk third-class mail to ported by air on a space-available basis upon the request of the be subject to the applicable minimum charge per piece, as prescribed publisher or news agent and upon payment of the regular postage in the various provisions of section 4452. Also, a minimum charge per plus an additional charge to be fixed by the Postmaster General. The piece of 1.3 cents is prescribed for such matter mailed on and after additional charge may not be adjusted more frequently than once January 7, 1968, by (1) qualified nonprofit organizations which are every 2 years and when prescribed or adjusted, shall equal as nearly organized for charitable, religious, or general health purposes, and are as practicable the amount by which the allocated cost incurred by the engaged predominantly in the accomplishment of such purposes, or Department for the delivery of such publications by air is in excess of (2) when such matter mailed by a qualified nonprofit organization the allocated cost the Department would have incurred had such consists wholly of solicitations of funds to be used for charitable, publications been delivered by surface transportation. religious, or general health purposes. The transportation of publications by air, pursuant to this section, Bills and statements of account, subsection (b) of section 107 of will be permitted only when such transportation does not impede the the bill transportation of airmail, air parcel post, or first-class mail. Subsection (b) repeals section (b) of title 39, United States The existing provisions of subsections (d) and (e) (1) and (2) of Code, to conform with an amendment made by section 101 (d) of the section 4359, relating to proof of qualifications and definitions of class- bill to section 4251 relating to the requirement that bills and state- room publications and of a nonprofit publication, have been included ments of account be mailed as first-class mail. in section 4358. Subsection (e) of section 4359 updates and continues the definition Section 108. Special rate fourth-class mail of the term "zones" which was contained in the existing provisions of This section amends section 4554 of title 39, United States Code, section 4359(e) (3). in several major respects. Paragraph (2) of section 104(a) and section 104(b) of the bill make The section heading of section 4554 and the corresponding table of the necessary technical adjustments in the heading of section 4359. contents are amended by subsections (b) and (c) of section 108 to and in the table of contents of chapter 63, respectively. remove the implication that all items entitled to the preferred rates Subsection (c) of section 104 amends section 4369(a)(4) to remove prescribed by this section consist of educational material. While the "trade publications serving the performing arts" from the exemption provisions of this section originally included only educational items, to the requirement that owners of publications having second-class there now are included in the section many items which have doubtful, mailing privileges furnish to the Postmaster General and publish in if any, educational value. For example, the preferred rates apply to their publication certain information such as the number of copies all "books" and to all "sound recordings." distributed. The general rate under subsection (a) of section 4554 is increased from 10 cents for the first pound to 16 cents for the first 2 pounds or Section 105. Second-class transient mail fraction thereof, and from 5 cents to 6 cents for each additional pound This section amends section 4362 of title 39, United States Code, to or fraction thereof. The lower rates under subsection (b) for certain increase the rates for transient mail from 4 cents to 5 cents for the first 2 ounces. No increase is made in the 1-cent rate for each additional mailings between libraries, schools, and certain nonprofit organiza- tions are increased from 4 cents for the first pound to 8 cents for the ounce or fraction thereof. first 2 pounds, and from 1 cent to 3 cents for each additional pound. Section 106. Controlled circulation publications Subsection (a) (1) of section 4554 is amended to clarify the provi- This section amends section 4422 of title 39, United States Code, sions so that they will not be interpreted to deny the special fourth- to provide a three-phase increase in both the rate per pound and the class rates to book supplements; such as, for example, single volumes minimum charge per piece for controlled circulations during 1968, 1969, belonging to multivolume sets, or law or medical books issued serially. Public Law 89-593 redefined the definition of books SO as to extend and 1970. the special rates to complete looseleaf books, excluding replacement Section 107. Third-class mail pages thereafter mailed. The language included in the amendment Subsection (a) of section 107 of the bill rewrites subsections (a) and could be interpreted to exclude book supplements such as those (b) of section 4452 of title 39, United States Code, prescribing postage described above, which was not intended by the Congress. This amend- rates for third-class mail. ment simply clarifies the existing state of the law since book supple- ments are, and have been, entitled to the special fourth-class postage rates. 44 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 45 Subsection (a) (2) is amended to include films narrower than 16- burden. There are no restrictions of this kind applicable to other millimeter films within the items that are entitled to the preferred classes of mail. The amendment made by this section will remove the administra- rates under section 4554. Subsection (c) of section 4554 is amended to include films narrower tive burden and permit certain writing or printing as indicated above to be included on the outside wrappers or envelopes in which copies than 16 millimeters. A new subsection (e) is added to section 4554, authorizing the Post- of second-class publications are mailed. master General to prescribe the manner of preparation for mailing Section 113. Additional entry points items at the preferred rates when items are mailed in quantities of This section adds a new subsection (k) to section 4358 of title 39, 1,000 or more. United States Code, as amended by this bill. Under this amendment, Section 109. Keys and other small articles special local rates for mailings at additional entry points would be This section amends section 4651 (b) of title 39, United States Code, eliminated. Under present law, publications issued more often than to increase the rate for keys and other small articles from 6 cents for once a week pay a flat rate of 1 cent per copy for local delivery by each 2 ounces or fraction thereof, to 14 cents for the first 2 ounces or city carriers from the post office where they are entered for mailing. fraction thereof, and 7 cents for each additional 2 ounces or fraction Publications issued less often than once a week pay 1 cent per copy if they weigh 2 ounces or less, and a flat 2 cents if they weigh more for thereof. local delivery by city carriers from the office of mailing. These special Section 110. Special handling service local delivery rates apply at every post office where the publication is This section amends section 6008 of title 39, United States Code. entered for mailing, even at post offices outside the actual county of third-class mail (limited in weight to less than 16 ounces) within the The existing provisions of section 6008 are amended to include publication. Mailings at post offices outside the county of publication are called additional entry points. A number of mass-circulation authority of the provisions entitling fourth-class mail (minimum magazines have taken advantage of this rate by shipping their weight limit of 16 ounces) to the most expeditious handling and trans- publications to major cities outside the county of publication, enter- portation practicable. Such special service is available only upon pay- the ing the publication for mailing in these cities, and receiving the ment of a special handling fee, which is authorized to be fixed by special reduced local delivery rate. The Department has just com- Postmaster General. The amendment adds a further provision to pleted a survey of mailing patterns of 20 major nonweekly magazines make it clear that such special handling does not require handling which employ additional entry points and are now subject to the and transportation as airmail. special and 2-cent-per-copy rates at such points. The results indi- Section 111. Separation by mailer of second-class mail cate a loss of $1 million a year in postal revenue, representing the This section rewrites section 4363 of title 39, United States Code, to difference between the postage and the 1-cent and 2-cent-per-copy require publishers and news agents to mail second-class matter in the rates for the local deliveries at the additional entry points and the manner directed by the Postmaster General. postage that would have to be paid if the publications were charged This section eliminates the words "to zones" from the present law the regular zone rates. The bill would eliminate the per-copy rates on sorting and separating of second-class mail. for publications mailed at additional points of entry. The per-copy The Postmaster General has not required zone separation for many rates would continue to apply to local delivery from the post office of years. Instead, city and State separation was required. More recently original entry in the county of publication. This amendment does not affect the practice of using additional the requirement is to separate by ZIP codes. entry points upon payment of the appropriate zone rate but does Section 112. Printing on second-class covers eliminate the use of the within-county rates or the per copy rates This section adds a new subsection (d) to section 4365 of title 39, at the additional entry points. United States Code, relating to permissible marks and enclosures on Section 114. Matter for the blind and other handicapped persons or in second-class mail matter. Under subsection (d), there may be included, in accordance with This section strikes out sections 4653 and 4654 of title 39, United uniform regulations which the Postmaster General shall prescribe, on States Code, and adds new sections 4653, 4654, and 4655. Also, the envelopes, wrappers, and other covers in which copies of publica- existing section 4451 (d) of title 39 is repealed. This section relates to tions are mailed, messages and notices of a civic or public-service the mailing as third-class mail of unsealed letters written in point nature, if no charge is made for the inclusion of such messages and print or raised characters, or sound reproduction records. The new section 4653 would extend the free mailing privileges notices on such envelopes, wrappers, and covers. Many publications issuing a special edition in honor of a centennial currently provided only for matter mailed to the blind, to include or anniversary celebration of a community, have printed matter on other persons who cannot use or read conventionally printed material which makes the publication nonmailable at second-class rates under the envelopes or covers, identifying the centennial or anniversary, because of a physical impairment. The Library of Congress has for over 35 years administered the national books for the blind program. forcement of the provisions presents an unnecessary administrative the existing provisions of law. The Department has found that en- Public Law 89-522, July 30, 1966, authorized the Library of Congress to provide books and other reading materials to those persons who, because of physical handicaps, cannot read or hold ordinary printed POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 47 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 Some did not have the imprint, "Supplement to", others appeared 46 The amendment made by this section privilege. will include such to be indpendent "publications," circulars, catalogs, or not germane to the issue. materials. persons The free within postage the benefits is available of the when free the mailing matter the fee mailed required has no is charge, not in This amendment is intended to strengthen the position of the Post Office Department in this matter by excluding all advertising supple- or rental, of the subscription, cost thereof. or The other matter fee, or may contain be opened no advertising, by the Post- and ments from being mailed at the low second-class rate category, and requiring the regular rates even though mailed with second-class pub- excess master General to size for and inspection, weight limitations it must is prescribed extended to by reading the Postmaster matter and lications. It is expected that new, more meaningful regulations, be issued by the Department defining "advertising supplements." is General. and subject The scores; free mailing sound reproductions; privilege of reading paper, matter, records, musical tapes, scores, Under this amendment the advertising supplements, as properly defined by the Department, which are mailed with a second-class <<<<<<<<<<<<<<<<<<<<<<<<< or sound other repro- ma- publication will be required to pay postage at first-, third-, or fourth- class rates, as appropriate, had such supplements been mailed other or terials or devices, for use of, a blind person or section. a person or specifically having a than with the publication. Section 116. Mailing privileges of Armed Forces in the Canal Zone designed physical impairment or adapted section within 4654 would the meaning restate under of the this which present unsealed provisions letters of of This section adds a new section 4170 to title 39, United States Code, to clarify the application of the mailing privileges for members section written The new 4451(d), in raised which is repealed, or in the form section person of the U.S. Armed Forces and of friendly foreign nations, to the sound or person recordings, having a the servicemen stationed in the Canal Zone. The Canal Zone currently does not have any Armed Forces post offices, but operates an inde- pendent postal service under the jurisdiction of the Canal Zone Gov- 4653(a)(1). a section 4655 would include sections in the 4653 law and a new 4654 requirement be appro- ernment (2 Canal Zone Code 1132, 76A Stat. 39). Subsection (a) of section 4170 of title 39, United States Code, as priately that The all new similar matter marked phrase mailed "Free prescribed free Matter under by for the the Postmaster Blind publications or Handicapped" General. or added by this bill, will extend the mailing privileges prescribed by sections 4169(a), 4303(d)(5), and 4560 of title 39, as amended by this legislation, to servicemen stationed in the Canal Zone. with Section This a section 115. certain Enclosures adds matter a new mailed mailed section with with 4656 second-class second-class to title 39, United mail to States be had charged Code, such Subsection (b) of section 4170 authorizes the Department of De- fense to reimburse the postal service of the Canal Zone for the equiva- lent amount of postage due, and sums equal to the expenses incurred to postage require been at first-, mailed third-, other or THE with the publicated with <<<<<<<<<<<<<<<<<<<<<<<<< the a by, the postal service of the Canal Zone, for matter sent in the mails, and in providing air transportation of mail, as required by such section 4170. higher matter publications, rates will either apply loose to or bills bound cover in the in publication, which the or publication loose is Subsection (b) of section 116 makes technical amendments in the table of contents to chapter 57 of title 39, United States Code, to con- same mailed. envelope, The higher wrapper, rate also or other will apply to advertising supplements form to the new section 4170 added by subsection (a) of this section. Under with existing such publications. regulations, an advertising subject supplement may tions Section 117. Air transportation of parcels to or from Armed Forces post mailed offices mailed (Postal with Manual a second-class 132.44). The publication supplement the issue. must be It germane must bear to the the issue title This section adds a new section 4560 to title 39, United States Code, to create a new category of airlift mail consisting of parcels and of The the prepared publication, regulations in order provide preceded to complete that by "publications" the issue, words such "Supplement which as catalogs, are to". distinct circulars, from weighing not in excess of 30 pounds, and measuring not in excess of 60 inches in length and girth combined, other than parcels mailed airmail or air parcel post. and independent posters, of and the other regular "special" inserted advertisements, as supplements are to not publica- ger- This new authority will apply for parcels mailed at or addressed to any Armed Forces post office, whether such post office is established handbills, mane tions sent to the as issue second-class and may mail. not be Also, and under charges the for regulations, carrying preprinted publishers within the United States or overseas, upon payment by the sender of the regular surface parcel post zone rate of postage, plus a special fee must advertising be paid supplements advertising germane rates to the issue with which they are to be fixed by the Postmaster General for the domestic transportation by air. The committee intends that the fee be uniform for all packages mailed. the course of the hearings, which the committee were mailed received with publica- many without regard to weight or domestic distance to be transported. The preliminary indications are that the fee probably could be fixed in the exhibits tions. During In of the advertising advertising opinion of supplements supplements the committee, qualified it is doubtful under the whether regulations. some neighborhood of $1 per package. The new airlift is authorized for transportation between the point of mailing and the point of delivery and will include airlift within the of these POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 49 48 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 of 5 pounds included in sections 101 101(c), 116, and 117 of the reported United existing States, law whereas (39 U.S.C. airlift for 4303(d)(5)) parcels or not applies from in which excess only the between parcel the is bill. 2. Reports on H.R. 7192, relating to postage on matter for the blind and other handicapped persons, included in section under point of embarkation The new and authority the point adds to of an the additional option to airlift ship category a parcel 114 of the reported bill. 3. reports on provisions relating to bills and statements of mailed and is not overseas. not intended in excess to deprive of 5 pounds a mailer at the regular the embarkation surface parcel point post and account, included in sections 101(d) and 107(b) of the reported weighing zone rates, and obtain airlift only between the option to ship resulting a parcel bill. 4. Report on H.R. 2071, relating to the book rate on book the at the Armed premium Forces airmail post office or air overseas, parcel or post rates with the be trans- supplements, included in section 108 of the reported bill. 5. Report on H.R. 8951, relating to printing on envelopes, preferred This section service. on that scheduled the mail U.S. will air carriers wrappers, or other covers in which second-class publications are mailed, included in section 112 of the reported bill. ported by fixed air and on at scheduled Also, rates authority U.S. air is carriers included is not SO of mail pursuant provide tre servication providuate servication to carriers. THE POSTMASTER GENERAL, Washington, D.C., April 5, 1967. Hon. JOHN W. McCormack, of mail authorized by air, the by transportation airlift on other than scheduled U.S. air of account Speaker of the House of Representatives, may Section be 118. Solicitations in the guise of bills to section or statements 4001 of title 39, Washington, D.C. DEAR MR. SPEAKER: There is transmitted herewith a draft of a This section States Code, adds a relating new subsection to nonmailable or services matter, prepared to in declare a form is as to proposed bill to adjust certain postal rates and for other purposes. The proposed bill, if enacted, would carry out the recommendations United nonmailable, solicitations for orders that the solicitation actually by the ad- a the President has made to the Congress with respect to postal rates mislead goods the or a proviously.rendered. in his message on postal rates and pay. (H. Doc. No. 95, 90th Cong.) bill The for section of the goods or services is when nonmailable it is in the matter the form order and of, shall and reason- not be I urge early enactment of this legislation by the Congress. Sincerely yours, LAWRENCE F. O'BRIEN. dressee carried could or delivered be interpreted by the or mail construed bears as, a on bill, its invoice, face, in or conspicuous statement for ably of account legible due, type, unless a notice such that matter the bill, matter invoice, actually or statement is a solicitation solicitation of account, The reports from the Bureau of the Budget on H.R. 4224 and the Post Office Department on H.R. 4224 and related bills are set forth and the order The actual of goods form and is not a be on the or in below. The recommendations of the committee are included in the reported bill in sections (b), 101(c), 116, and 117. The Department due. may specific be as prescribed form set by_regulations of the Fos to provides mailed of Defense witnesses testified at the public hearings in support of the position of the Bureau of the Budget, which is to the effect that the that on or this after new the provision 90th day shall following be the effective date of the section. action on this legislation should be delayed on the basis that the special mailing privileges granted by this legislation are a form of personnel benefits and, as such, any adjustments therein should be Section Effective dates Section 119. 119 prescribes effective dates for the various sections. considered in the context of the results of the comprehensive review of pay, allowances, and fringe benefits now underway. The committee AGENCY RECOMMENDATIONS cannot agree with this contention. legislation is based on the official and Services" recommendations included of in the his EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET, President This to relating the Congress to "Postal entitled Rates "Civilian Congress. and The Military legislative Pay Raises," proposal Washington, D.C., May 3, 1967. Hon. THADDEUS J. DULSKI, message House transmitted Document by No. the 95, Postmaster 90th proposal General by was letter introduced dated April as H.R. 5, Chairman, Committee on Post Office and Civil Service House of Repre- sentatives, Washington, D.C. was 1967, 7977, which and an is explanation set forth below. of the The proposal entitled "Survey is included of in Postal House committee Rates." Docu- DEAR MR. CHAIRMAN: This is in response to your request for the views of the Bureau of the Budget on H.R. 4224, a bill to amend title ment relating agency The U.S. No. 1. provisions reports to Reports Armed 106, postal on 90th Forces, rates on of such Congress, several H.R. have provisions which 4224, been bills was included relating are pending superseded as follows: in to before the mailing by reported H.R. the privileges 10226, bill. The and for 39, United States Code, to provide additional free letter mail and air transportation mailing privileges for certain members of the U.S. Armed Forces, and for other purposes. 82-911 0-67-4 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 51 REVENUE AND FEDERAL SALARY ACT OF 1967 inches in combined length and girth, which is mailed at or addressed 50 testimony POSTAL before your committee,the Department committee.the Departined of designated respect Defense to to any Armed Forces post office shall be transported by air, on a space-available basis, upon payment of the regular postage plus a notes The that areas H.R. 4224 little would that they do not notes already that to extend granted to service- in special fee to be prescribed by the Postmaster General. Under present law (39 U.S.C. 4303(d)(5)), parcels up to 5 pounds in weight, and 60 inches in combined length and girth, are accorded men of the unique <<<<<<<<<<<<<<<<<<<<<<<<< THE is to de- airlift service between points of embarkation or debarkation and Armed Forces post offices overseas, upon payment of regular surface recognition tract from the questions the postage. Section 2, it is noted, does not contain any criteria or guidelines Department mail privileges Finally, to those Defense not states in combat that as such, zones, special any be of a for the special fee to be prescribed by the Postmaster General. In this connection a single, flat fee to be charged an eligible parcel, provide. form considered of personnel in the context benefits of and, benefits the results now of underway. the comprehensive Department regardless of considerations of weight or distance involved, would not be equitable. pay, allowances, Bureau of and the fringe Budget concurs in recommends the views of against the favorable be incon- The enactment of section 2 would result in encouraging and in- creasing the flow of packages to members of the Armed Forces. This consideration the administration's consideration and, The H.R. therefore, 4224, strongly the enactment objectives. of which would involves questions of logistics and troop morale, considerations which relate to responsibilities of the Department of Defense. We suggest, therefore, that the merits of section 2 can best be determined by that Sincerely yours, WILFRED H. ROMMEL, Department. If it is favorably considered, however, we believe it Assistant Director for Legislative Reference. should contain provision for reimbursement to this Department from the Defense Department of the additional unrecovered air transpor- tation cost that would result from its adoption. POSTMASTER GENERAL, Section 3 extends the present airlift service for second-class news Washington, THE D.C., April 25, 1967. publications so as to include all overseas Armed Forces post offices. Currently, this aspect of the airlift law is confined to designated Hon. Chairman, THADDEUS Committee J. DULSKI, on Post Office and Civil Service, House for of a Repre- report combat areas. The Department would defer to the Defense Depart- ment on this feature of the bill. Washington, D.C. The Bureau of the Budget has advised that from the standpoint of DEAR sentatives, is in reply to of your mail the request U.S. and air Armed transporta- H.R. Forces, 4771, the administration's program there is no objection to the submission of this report to the committee. Sincerely yours, on tion other serve as a report on letters, LAWRENCE F. O'BRIEN. THE identical lesthislegistio extends to free members mailing privileges for Forces in THE POSTMASTER GENERAL, cards, stationed outside voice the zones 48 are tapes entitled States. to the Presently, hospitalized privilege. only In in troops addition, a Washington, D.C., August 16, 1966. Hon. THADDEUS J. DULSKI, designated combat privilege to servicemen result of disease facility or Chairman, Committee on Post Office and Civil Service, House of Representatives, section under injury the incurred 1 grants jurisdiction the while of on the active Armed duty. Forces Existing hospitalized as a law area. as in Section the this result regard 1 also of Washington, D.C. DEAR MR. CHAIRMAN: This is in response to your request for a grants disease extends the or the 1 privile incurred nation serving designated fashion under to combat members U.S. commands of an armed (39 U.S.C. force report on H.R. 7192, relating to rates of postage on matter for blind and other handicapped persons. The bill would strike sections 4653 and 4654 of title 39, United of a friendly foreign of mailing privileges which as pertain proposed to is that the a States Code, which relate to certain mailing privileges for the blind, 4169(a)(2)). and substitute in lieu thereof new sections 4653, 4654, and 4655. Basically, falling extension within areas We the judgment have free of mailing The bill would also repeal section 4451(d) of title 39, which likewise relates to these mailing privileges. matter of Defense. all overseas privilege troops be New section 4653 would restate the present provisions of sections 4653 and 4654, making the following substantive changes therein: the virtue of section 4169(b) of title mail. 39, It (1) Matter now mailable at reduced rates under section 4653(b) would be postage free; (2) regardless of the identity of the mailer or ad- airlift dressee, qualified matter for the use of a qualified person would be from United provides Section States that 2 of Code. a the surface bills parcel establishes not over a new 30 category pounds in of weight, and 60 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 53 REVENUE AND FEDERAL SALARY ACT OF 1967 52 POSTAL free; (3) would other materials be postage and free, devices subject designed to size In conclusion, it should be noted that the expanded free mailing privileges proposed by this bill will result in lost postal revenues. postage or and adapted weight for limitations use typewriters.and the prescribed blind could by be the free, (4) At present we cannot accurately estimate these losses. The Depart- ment believes, however, that the program should be funded in con- junction with other similar programs. Accordingly, it is suggested advertising matter 4654; for using (5) from the the any requirement free matter mailing mailed restrictions that privileges publishing on not the be owner- con- that a provision similar to that relating to reimbursement to the Post Office Department by the Department of Defense of expenses incurred in connection with soldier mail, set forth in section 4169 of title 39, United States Code, be included in the bill. The Congress and ducted ship other for profit now would mailable be deleted; under (6) section the 4654 would be deleted; of can best determine whether the funding agency should be the Depart- ment of Health, Education, and Welfare or Library of Congress, both and sections (7) of matter the 4653 class through of read persons 4655 conventionally entitled would be to a a a of which have substantial programs for the assistance of the blind and other handicapped. or would restate the present provisions point print of or section raised The Bureau of the Budget has advised that there is no objection to the submission of this report to the committee from the standpoint 4451 New (d), under which unsealed reproduction letters written records, in used by the free. blind are all of the administration's program. Sincerely yours, characters, third-class or on sound mail, and make the such law letters a new requirement postage that LAWRENCE F. O'BRIEN. defined matter New section as mailed in or and a similar 4654 be phrase marked prescribed "Free THE LIBRARIAN OF CONGRESS, Washington, D.C., June 6, 1967. Matter by The the Postmaster Department blind. for the General. We, long as furthermore, supported proposed by the generally three this principle changes bill. endorse For of in free the the the mailing reasons liberal- bill Hon. THADDEUS J. DULSKI, Committee on Post Office and Civil Service, House of Representatives, Washington, D.C. privileges these set forth, privileges however, we believe mailing are DEAR MR. DULSKI: This is in reply to your recent letter asking for the comments of the Library of Congress on H.R. 7192 and H.R. hereinafter desirable. that the proposed use of extension the blind or of other free because persons of a 7153. As you know, the Library of Congress has, for over 35 years, ad- privileges read conventionally which conventionally form printed enable matter blind material to or other other qualified qualified for the ministered the national books for the blind program. During the last session of Congress, Public Law 89-522 amended the act to provide that books and other reading materials furnished for the blind should and (2) extend the free special mailing privilege who are covered to materials Law into the 89-522 Li- also be made available to those persons who, because of physical handicaps, cannot read or hold ordinary printed materials. persons use of of those Congress other books-for-the-blind handicapped persons program to (1), it by understood purpose. understood purposet Public Under provision of law (39 U.S.C. 4653-4654) reading materials for the blind, including books in braille and talking books, and the brary (2 U.S.C. 135a, of the 135b). bill is With much regard broader the class than of mailers the or addressees addressed to machines on which to play the talking books have been exempt from postage fees. As a result blind residents of the United States have the Accordingly, stated coverage as 'for it the is suggested use of and that Public mailed Law by, or 89-522 mailed describes for, readers or these certified handi- by been able to receive free library service comparable to the library service provided to sighted persons. * With regard to (2), to <<<<<<<<<<<<<<<<<<<<<<<<< the printeribertification matter as a Heretofore, persons with physical handicaps other than blindness who could not read or manipulate a book have not been able to participate in any library program because specialized reading materials such as talking books have not been available to them. It result Librarian of is a Congress prudent for and a protective to to would, in my opinion, be unfortunate if they could not participate in this expanded library program because they were unable to pay the procedure prevent use of the program Furthermore, we the free mailing privilege. cost of postage. Library service in the United States has traditionally been a free service and these individuals would be penalized because benefit measures Accordingly, therefrom. are we needed suggest to reference prevent that this provision of the billy of the be amended certification to their physical infirmities prevent them from being able to go to the library to obtain reading materials. For the most part, the only way they can receive books is via the United States mail. could be mailed that Public the postage Law free thange under whichnessty- loss to the postal the In addition, the administration of the Library's books for the blind and physically handicapped has been complicated by the fact that blind readers can receive reading material and talking book machines ing and matter a potential strongly source of urge considerable that the bill be amended matter. to restore Accordingly, present provisions we of law relating to advertising POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 55 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 General Counsel of the Post Office Department concluded that com- 54 of and the A handicapped.readerscannet At puters produced material by a mechanical process which more closely resembled a printing than a typewriting process. Accordingly, in free 100,000. postage blind readers more 1968. handicapped readers program and I it was has inaugurated taken in special support committee in pride 1930. in The would enactment insure the by handicapped readers It will is enroll in the its <<<<<<<<<<<<<<<<<<<<<<<<< of February 1967, the General Counsel expressed the opinion that material produced by high speed computers should be considered as having been produced by a mechanical process other than type- writing. The effect of that ruling is that material which for years had been classified as first-class mail could thereafter be mailed at the made Congress since of of the the the expanded program legislation before to your reading materials to other lower third-class rate. Thus, at a time when the Department is attempting to secure needed increases in postal rates to pay for the increased costs of the postal service, certain mailers are receiving success physically handicapped substantial reductions in postal rates. It is estimated that if S. 1693 is provision investment to in this the rehabilitation of not enacted, the Department will suffer an annual loss of revenue in the amount of $20 million. Sincerely yours, L. QUINCY MUMFORD, Librarian of Congress. The Department believes that S. 1693 should not be regarded as a bill to increase postal rates. Rather that it may more properly be considered as a bill to keep bills and statements of account produced THE POSTMASTER GENERAL, by computers in the first-class postage rate category that they had Washington, D.C., July 5, 1967. been in before the February 1967 ruling. In short, by its enactment, the status quo would be preserved and one group of mailers would Hon. Chairman, THADDEUS Committee J. DULSKI, on Post Office and Civil Service, House for of the Repre- views not receive an unexpected rate reduction while other groups of mailers have their rates increased. Washington, D.C. In view of the foregoing, we recommend the enactment of S. 1693. of DEAR this sentatives, Department MR. CHAIRMAN: on prepared S. This 1693, is in by a reply electronic bill to to your provide data request processing that bills equip- and The Bureau of the Budget has advised that there is no objection to the submission of this report to the committee from the standpoint of the administration's program. statements ment be classified 4251 of account (a) as of title first-class 39, United mail. States cards, Code, (2) defines post cards, first-class (3) Sincerely yours, LAWRENCE F. O'BRIEN. mail matter Section as wholly consisting or here partially of material), mailable: in writing and (1) postal (4) or matter typewriting closed against (with certain postal AUGUST 31, 1967. Hon. THADDEUS J. DULSKI, exceptions inspection. 4451 not of title 39, United States which is: Code, (1) defines not mailed third-class second- or re- Chairman, Committee on Post Office and Civil Service, House of Repre- sentatives, Washington, D.C. DEAR MR. CHAIRMAN: This will reply to your letter of August mail quired class Section as mail, to consisting be and mailed (3) of less mailable title as than first-class 39, 16 United matter ounces mail, States in weight. (2) Code, not the entered provides lower as third-class that bills 17, 1967, in which you advise that the committee has adopted an amendment to H.R. 7977 which will change section 4251 of title 39, United States Code, to read in pertinent part: "(a) First class and postage statements rate if produced of by any photographic or copies are mailed shall Section 4451(b) of account may be mailed at mechanical process, at mail consists of mailable *** (4) bills and statements of account ***" other one time. than typewriting, In other cases, mail. and bills if 20 and or statements whether of material account produced be You ask whether the words "bills and statements of account" would be interpreted as including invoices. The Department has long made a distinction between bills and state- mailed Some as years first-class data ago, the a arose as to was decided by typewriting referred a that mechan- such to ments of account on the one hand and invoices on the other. Pursuant to section 4555 of title 39, United States Code, and predecessor provisions of law authorizing the enclosure in fourth-class mail of a a than for a produced years were thereafter, by classified a bills as first- and description of the article mailed, the Department has, at least since the 1913 edition of the Postal Laws and Regulations, authorized invoices to be enclosed. process. statements Accordingly, of account prepared by computers material Bills differ from invoices in that they constitute requests for pay- mail. the was again presented as to should whether be considered ment of amounts due. Invoices on the other hand are itemized lists of class goods shipped to a buyer, stating quantities, prices, shipping charges, as In 1966, by electronic very exact long and mechanical careful the etc. They do not purport to call for payment, nor do they state an account between the buyer and the seller. manner in whichich bigh the material, POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 57 REVENUE AND FEDERAL SALARY ACT OF 1967 56 If the POSTAL amendment in question to the becomes contrary, law the Depart consider the the or other covers in which copies of second-class publications are mailed. This measure amends section 4365 of title 39, United States Code, relating to permissible marks and enclosures on or in second-class absence phrase in of a history invoices. has also affect been title raised relation 39, United as to to mail matter, so as to permit writing or print on the outside wrappers or envelopes in which copies of second-class publications are mailed. The Department favors the purpose of H.R. 8951. The present whether It is my section provides, enclose in in their restriction on writing or print on outside covers of second-class mail is States second-class Code, mail, "publishers and difficult for our post offices to administer. In any case the general practice of publishers is to mail as many copies of their publications as is possible without wrappers, in order to save the cost of wrappers. authorize even though the these same items In view of the not consider Furthermore, there are no restrictions of this kind applicable to other of section if mailed 4365(b) separately. and 4251 the former. we would classes of mail. a the purpose betw to the latter as affecting However, since enactment of the bill would permit advertising matter to appear on the outside wrapper or cover, which matter is Sincerely yours, LAWRENCE F. O'BRIEN. now confined to the inner content of a publication, the effect of the legislation is to merge the outer wrapper with the body of the publi- cation. In view of this, the Department recommends an amendment THE POSTMASTER GENERAL, to the bill to the effect that wrappers or covers containing advertising Washington, D.C., April 6, 1967. matter shall be considered as part of the advertising portion of a publication for purposes of postage payment. This could take the Hon. Chairman, THADDEUS Committee J. DULSKI, on Post Office and Civil Service, request House for of a Repre- report form of adding the following language to the proposed new subsection: "but when such covers contain advertising they shall be considered Washington, D.C. as part of the advertising portion and the publication for the purpose DEAR sentatives, MR. CHAIRMAN: extending the This book is in rate reply of to postage your to books issued "books," to of computation of postage." The Bureau of the Budget has advised that from the standpoint on H.R. 2071, books. is to clarify the meaning clear that supplements of it will not of the administration's program there is no objection to the sub- mission of this report to the committee. a inadvertently The purpose Public deny the rates to to book multivolume sets, Sincerely yours, LAWRENCE F. O'BRIEN. such or law as, or for medical example, books the issued Parcel serially. Post Act of rates 1966, to redefined complete the looseleaf defini- tion Public of Law so It to now exclusion exclude appears, also not books, remove the an possibility of intended As indicated, been, the proposed entitled legislation clarification, to the special simply supplements rates, of the law. enactment We favor of such H.R. 2071. and, of clarifies the Burninistration's the have no objection program Budget to has there the advised is no that objection from to the the standpoint submission a of this committee. Sincerely yours, LAWRENCE F. O'BRIEN. THE POSTMASTER GENERAL, Washington, D.C., July 17, 1967. Hon. Chairman, THADDEUS Committee J. DULSKI, on Post Office and Civil Service, request House for of a Repre- report on DEAR H.R. 8951, MR. CHAIRMAN: a bill to allow This writing is in or reply printing to your on envelopes, wrappers4 sentatives, Washington, D.C. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 59 In the judgment of the committee, the salary bill reported by the Subcommittee on Compensation strikes a fair and realistic balance between all of the major interests concerned. It is a suitable com- promise, consistent with the best interests of the taxpayers, the Gov- ernment, and the employees. Accordingly, title II of the committee bill adopts the subcommittee proposal virtually without change. TITLE II-FEDERAL salary ACT OF 1967 The chief thrust of title II is toward the achievement, finally, of the comparability between Federal civilian salaries and those in private President Federal title and report. civilian the official salary recommendation of adjustments set enterprise, as guaranteed by the Federal Salary Reform Act of 1962, without aggravating the critical budget problems of most immediate concern to the administration and the taxpayers. This title adopts of this the President's recommendation for a 4.5-percent increase, effective in October of 1967, for all statutory salary systems except the postal of the repetition this STATEMENT year all Federal of the perennial civilian salary struggle legislation, between frame field service, and adds 1.5 percent to the President's proposal for that service. This first-phase increase costs only $63 million more than the increase recommended by the President for the current fiscal conficting interestons In view involved committee are deemed in salarder to establistions proper contained in year, in terms of the salary systems included in the President's recommendation. Both the President's proposal and title II are designed to achieve of title reference II of Government's the for committee 3 million employees to billion constitute annual civilian the payroll largest of the full comparability with two added adjustments following the first- phase increases. The difference is that the President recommended a single The work in the world. by The title $18 II, Even constitutes a modest 14 adjustment percent undertaking, in longer period of time than is provided in title II of the committee bill to reach full comparability. for total the is and a formidable weighing of all sources. of the SUMMARY OF MAJOR POLICIES IN TITLE II a THE and of of first the problems importance and to expenses these income. employees other ad- arise families from three to clothe, principal house, of and OCTOBER 1967 SALARIES The present 20-level postal field service salary schedule will be changed to a 21-level schedule, and all employees subject to the present And their dependents, who matters often have no of other the President source of total and the schedule will be advanced by one numerical salary level. The ad- ministration. are Federal aspect of inflation, of a the innumerable financing budget vancement in salary level will give each employee a 6-percent salary increase effective in October of 1967. Rural carriers will receive the involving high conflicting economic demands for available funds, and of same increases as are granted city carriers. Employees subject to the General Schedule (classified), Foreign of other a war, problems. there are the taxpayers who billion must fiscal pay the deficit costs facing any in Service Officer, and Foreign Service Staff Schedules, Veterans' Ad- ministration medical and surgical salary ranges, Agricultural Stabili- Federal Finally, Government salary increase. and the With Congress trying thetic a $30 to to the increases. the zation and Conservation county committee pay schedule, judicial branch pay rates or ranges, and legislative branch pay rates, all will their to the taxparers areunt STATE salary to all of these receive 41/2-percent pay raises effective in October of 1967. every category, and The had committee the benefit the in well interests, extensive as the JULY 1968 SALARIES Postal employees will receive a second-phase increase of 5 percent Thefully worked outh before employee groups, keeping in mind ad- the in July of 1968. Employees in other pay systems will receive adjust- ments in July of 1968 to close one-half of the difference between their salary levels and comparable private enterprise salary levels (based interests It has of been the and impossible, taxpayers. The pay as usual, raises to recommended bring forth employee a by bill the that group Subcom- fully re- on the June 1967 Bureau of Labor Statistics salary survey) but not less than 3 percent. The necessary salary adjustments for these other employees will be made by the President, without further satisfies mittee on all Compensation interests. entirety are represent well below the many most moderately liberal salary more "pack- liberal legislative action. APRIL 1969 SALARIES THE the proposed in in mended in The raises are but are regarded as not Both postal and other employees will receive a final, third-phase adjustment in April of 1969 to bring all of their salaries up to a par 58 60 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 61 with private enterprise salaries, as determined by the June 1968, TABLE OF EMPLOYMENT AND COSTS Bureau of Labor Statistics salary survey. This final adjustment also will be made by the President without further legislative action. Fiscal year costs (in millions of dollars, Statutory salary system Number of cumulative) employees 1968 1969 1970 EXECUTIVE SCHEDULE SALARIES General Schedule 1,200,000 $354.9 $1,170.1 $1,807.8 Salaries for executive levels III, IV, and V are increased from Postal field service 715,000 250.0 649.2 711.3 $28,500, $27,000, and $26,000, to $29,500, $28,750, and $28,000, Veterans' Administration, Department of Medicine and Surgery 21,000 8.3 32.1 50.0 Foreign Service 16,000 7.8 32.4 50.7 respectively, in order to accommodate the general salary increases Total, executive branch 1,952,000 621. 0 1,883.8 2,619.8 proposed for career employees. Judicial branch 5,000 1.75 5.68 8.55 Legislative branch 6,550 1.99 6.25 9.24 Agricultural Stabilization and Conservation county committee em- COMMISSION ON EXECUTIVE, LEGISLATIVE, AND JUDICIAL SALARIES ployees 21,350 4.10 12.90 19.75 Total, all systems 1,984,900 628.84 1,908.63 2,657.34 A "Quadrennial Commission" is established to determine proper levels for executive, congressional, and judicial salaries once every 4 years. Each Commission will make a study for a full fiscal year EXPLANATION OF TITLE II BY SECTIONS every fourth year (beginning with the 1969 fiscal year) and must submit its recommendations to the President by the end of the Section 201 of title II provides a short title-"Federal Salary Act calendar year in which the study is completed. The President shall of 1967." include, in the next budget he transmits to the Congress after receiving The schedule in section 202(a) provides 4.5-percent pay raises the Commission's report, his recommendations for the exact rates of for all General Schedule (GS) employees, substantially as recom- pay, and the kinds and amounts of expenses and allowances, for mended by the President, effective the first pay period in October Federal executives, judges, and Members of Congress. The recom- 1967. Subsection (b) provides the usual rules to convert employees mendations transmitted to the Congress by the President in his budget to the new salary schedule. will become effective the first pay period beginning more than 30 Section 203 makes a technical change in the designation of the days after transmittal of the budget, unless the Congress has enacted two top postal field service (PFS) salary levels, to conform with a statute fixing specific rates of pay and amounts and kinds of expenses later provisions which replace the present 20-level postal field service and allowances or unless one House or the other has specifically salary schedule with a 21-level schedule. disapproved any or all of the President's recommendations. Section 204(a) establishes a new position of "Cleaner" in PFS salary level 1, which will be the only position in the new salary level STATUTORY SCHEDULES-SALARY LINKAGE 1, and assigns a new position of "Custodian" to PFS salary level 2 which replaces the existing position of "Janitor." The Federal Salary Reform Act of 1962, among other matters, Subsection (b) of section 204 advances every salary level now established the principle of "salary linkage" of postal field service under the 20-level PFS schedule to the next higher level in the new salaries and General Schedule salaries, as a necessary means for 21-level PFS schedules provided by section 205(a). orderly establishment of appropriate relationships between the two Subsection (c) of section 204 is a salary saving provision for "clean- salary systems, for purposes of determining comparability with ers" who are in PFS level 1 at date of enactment and are advanced to private enterprise rates, because a great many postal field service the new PFS level 2. positions have no counterpart for comparison of duties and respon- Section 205(a) replaces the present 20-level PFS salary schedule sibilities in the private sector. with two 21-level schedules. Postal field service schedule I grants a It is the committee's intention that this direct salary linkage of the 6-percent, across-the-board raise to all PFS employees except for postal field service and the General Schedule salary systems be main- six rates in levels 20 and 21. The 6-percent raise is effective the first tained, as a necessary adjunct of the comparability policy, even pay period in October 1967. Postal field service schedule II is a though the salary rates in the committee bill provide a 6-percent "comparability catchup" schedule, granting an additional 5-percent initial increase for postal field service employees and a 4.5-percent across-the-board raise effective the first pay period in July 1968, increase for General Schedule employees. The variance is due entirely except for six rates in levels 20 and 21. to budgetary considerations, and does not alter the substantive Subsection (b) of section 205 provides 2-phase raises for rural principle of linkage of the levels of duties and responsibilities. The carriers to keep their compensation in line with city carriers in the direct salary linkage, heretofore in effect, will be restored through the postal field service schedules. salary adjustments the President is to make in July of 1968 and April Subsection (c) of section 205 establishes an improved method of of 1969. The final schedules to be prescribed by the President in 1969 fixing salaries of postmasters at fourth-class offices. The present will establish the same salary ranges for postal field service level 21 fourth-class office schedule is replaced by provisions which require pay- and General Schedule grade 17, for postal field service level 12 and ment of salaries of these postmasters at the appropriate step of General Schedule grade 11, and for the first 10 step-rates of postal PFS salary level 6 of the new PFS schedules, in amounts which bear field service level 5 and General Schedule grade 5. the same ratio to the annual rate of level 6 as the total number of POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 63 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 schedule or schedules to which such adjustments made under sub- 62 hours worked by the postmasters bear to the regular 40-hour work section (a) pertain. Section 208 provides 4.5-percent increases in all of the minimums schedule. Subsections (d) and rules, (e) of to section place 205 employees are appropriate in the new adaptations of and maximums of the salary ranges applicable to employees in the Department of Medicine and Surgery of the Veterans' Administration, the usual schedule conversion I. prevents loss of credit legislation for time to served new effective in October of 1967. service Section 209 grants 4.5-percent pay raises to Foreign Service officers in Subsection the postal (f) field of Each service section employee upon 205 conversion will be credited by this with schedule time served when and staff officers and employees effective in October of 1967. Section 210 grants Agricultural Stabilization and Conservation salary toward he converted schedules. step advancement to the new under salary the schedule, present PFS and will salary not have to start of county committee employees pay raises in proportion to the pay raises granted General Schedule employees in section 202(a), effective in October of 1967. new is waiting period. section 205 provides for orderly postal conversion field service Section 211 authorizes similar adjustments in the pay of employees a employees schedule Subsection II from when (g) (h) postal the of of section latter field schedule 205 service guarantees schedule becomes of salary credit effective I to protection for in all July time of any of served 1968. em- whose salary rates are fixed by administrative action under separate statutory authority. Section 212 provides for closing the lag of Federal salaries behind in Subsection the postal who shall field have service been for reduced purposes States in salary Code. standing, as provided in of private enterprise rates which remains after the initial and, for postal, the second-phase pay raises, discussed above. For the executive branch, the President, without any further legislative action, (1) will be re- ployee section Subsection 3560 45 of of title (i) title of 39, 39, section United United 205 States conforms Code, with the the table fourth-class of contents amend- office quired to place in effect new pay rates for all employees (except postal) in July of 1968 which close half of the then existing "comparability gap" based on the 1967 Bureau of Labor Statistics comparability chapter changes. Section title 206 39, (a) United and (b) States consists Code, of relating necessary 205(c). to the conforming new fourth-class survey of private enterprise, but such new pay rates shall not be less than 3 precent above the rates in effect immediately before the Presi- ments office salary to system established 206 by is section technical conforming amendment employees dent acts, and (2) will be required to make a second adjustment for all employees in April of 1969 closing the remainder of the then existing needed Subsection to preserve (c) of the section right to salary overtime a levels compensation up to level for 10, since 205. the "comparability gap" based on the 1968 Bureau of Labor Statistics comparability survey of private enterprise. Employees subject to in present present PFS postal level of field 10 section is service redesignated 206 also is as a PFS technical level Code, conforming 11 by exempts section amend- from other pay systems covered by the bill will have their salaries similarly adjusted by appropriate authorities. All of the salary adjustments ment. Subsection Section of certain (d) 3575 sections of title 39, of that United 15 title and States (among above" other of the special present cate- will 20- made pursuant to this section will be automatic, and will have the force and effect of statute when made by the appropriate. authority. Subsections (a), (b), and (c) of section 213 provide pay raises for coverage gories) level PFS "employees salary schedule. in salary Since level of level the committee 15 of the present bill, the schedule reference in judicial branch employees customarily included in committee salary bills in line with the raises provided by the General Schedule in section become section 3575 level of 16 title under of 39, section title United II 206, States similar Code in purpose is changed for to appropriate subsections accordingly. con- (c) 202(a), effective in October of 1967. Subsection (d) restores salaries of the Director and the Deputy Director, Administrative Office of and Subsection (d), changes is a (e) technical in the amendment administration providing reference of rules, therein regulations, to PFS orders, salary the U.S. Courts, to their former relationship with salaries of U.S. district court judges. Section 214 provides pay raises for legislative employees custom- forming and level other numbers statutes now with in effect respect and as to changed any by title II of the committee that arily included in committee salary bills effective in October of 1967, except as noted in subsections (f) and (g), in line with those provided bill. Section 207(a) authorizes in the certain President, occupations when or he recruitment areas finds are so pay and far by the General Schedule in section 202(a). Subsection (f) restores, in part, the salary relationships of certain employees in the Office of the rates above retention in Federal private of qualified statutory occupations enterprise Federal pay and rates employees, areas as above to to impede the establish maximum initial initial steps step salary of rates the Architect of the Capitol that were established by the Legislative Branch Appropriation Act, 1960 (73 Stat. 407). The exclusions pro- vided by subsection (g) are self explanatory. rates appropriate of such for grades those grades or or levels. levels, Present but not law above limits the this authority or an to agency the Section 215 adjusts salaries for executive levels III, IV, and V from $28,500, $27,000, and $26,000, to $29,500, $28,750, and $28,000, respectively, in order to accommodate the general salary increases seventh step rates. Subsection designate (b) of to section the THE granted in subsection the salary (a) to proposed for career employees. Section 216 establishes a "Quadrennial Commission" to determine proper levels for executive, congressional, and judicial salaries once he rate reflect may established salary increases under the enacted by statute for salary every 4 years. The Commission will make a study for a full fiscal POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 65 64 once every fourth year (beginning to with the President the 1969 fiscal by the year) end U.S. CIVIL SERVICE COMMISSION, Washington, D.C., April 5, 1967. year and must submit year its in which The President after Hon. JOHN W. McCormack, Speaker of the House of Representatives. of the calendar budget shall include, the in Commission's the next THE a Dear MR. SPEAKER: In accordance with the President's message of April 5, 1967, I transmit herewith for the consideration of the Con- receiving of and the kinds and exact rates pay, and by the President gress proposed legislation which would place in effect the President's THE to the Congress beginning more recommendations for adjustment of statutory salary schedules pur- will become the first pay period unless the Congress suant to the provisions of subchapter I of chapter 53, title 5, United in than his 30 budget days after transmittal of the rates budget, of pay and amounts and States Code. There are enclosed a draft bill, a section analysis of its provisions, and a statement of purpose and justification. has statute fixing specific or unless one House recommenda- or the other Salary adjustments recommended would affect the schedules of the specificationsproved ance or all of the President's four statutory pay systems, for the General Schedule, for the postal field service, for the Foreign Service, and for physicians, dentists, tions. that this title will not raise any salary otherwise to a and nurses in the Department of Medicine and Surgery in the Vet- Section 217 the provides salary rate for executive level already V, except at as rates above erans' Administration. Proposed salary schedules rest on the factual basis presented in the annual report of the Director of the Bureau of rate specified. above The exceptions relate to positions the Budget and the Chairman of the Civil Service Commission under the rate for such establishes level V. 20-percent minimum, and raises overtime the maxi- pay) the provisions of Executive Order 11073 and their further report of Section 218 25 to 30 percent, a for premium pay (in lieu employees of which in- March 30, 1967. These reports, attached to the President's message, mum from for regular overtime work by Federal time. compare Federal salaries with private enterprise levels as reported by the Bureau of Labor Statistics in October 1966; propose a 4.5-percent payable volves substantial amounts the of customary "standby" guidelines title governing is enacted payment with average increase in statutory schedules in 1967, except that some of the Section retroactive 219 salary provides raises that are needed if the highest rates where such an increase would bring career salaries above the salary of level V of the executive schedule; and further propose a of a retroactive effective date, extend is probable. elibibility for continued retirement, employees commitment to increase statutory schedules to levels fully comparable Sections 220 and and health 221 benefits coverage to Government to pay levels in private enterprise by two further increases, one in life insurance, approved leave without and non-Ferederal en pay non-Federal employ- pay non-Federal employ- 1968 and one in 1969. Each of the three adjustments in schedules that who are on officially which may have both Federal entire costs. are proposed would be effective in October of the particular year. One additional proposal included in the draft bill would aid the organizations ees as members, if the employees adjustments pay in the the statutory salary the relation- rates of Government in recruiting, especially at the inexperienced graduate certain Section officials 222 makes in legislative branch rates agencies for to executive maintain levels III, IV, level where industry rates have moved farther and farther ahead of salaries the Government can offer. Under section 5303 of title 5, ships of provided such salaries by section to the salary 215, since Public the salaries Law 88-426. for such officials United States Code, the Civil Service Commission can prescribe special rate ranges when it finds that the Government is significantly and were Section V, keyed 223(a) to those provides executive appropriate levels in effective dates for the various handicapped in recruiting or retaining well-qualified persons because private enterprise salaries are substantially higher than those in parts raises Subsection of provided title II. (b) by of the section bill, authorities 223 and makes the salary under all of adjustments section the October 212, to effective 1967 be made pay on if Federal statutory salary schedules for the classes of positions con- cerned. Under existing law the minimum rate for such special ranges may not exceed the seventh rate of the statutory scale of the grade. by date retroactive, the of President enactment as the and case or other the may date be, any employees' for such purposes adjustment life of insurance fixing is amounts ordered program. of The proposal in the draft bill would raise this ceiling to the maximum rate of the grade. The proposed 1967 salary adjustment would increase the Govern- coverage provisions under the are Government needed, and like authorized. provisions are customary, ment's fiscal year 1968 costs by approximately $541.4 million. As directed by the President, I am prepared to consult with the These whenever retroactive pay increases are appropriate committees of Congress on the form and specific content AGENCY RECOMMENDATIONS of the legislation which the President recommended to establish a special joint executive, legislative, and judicial salary committee to The provisions the of President, title II are including based generally his message on the to Document official the Congress recom- No. examine all Federal pay systems and to make a report to the President and to the Congress in January 1969. mendations entitled, "Civilian of and Military Pay proposal, Raises," together House with a statement 95, of purpose 90th Congress. and justification, The legislative was letter transmitted dated April by 5, the 1967, Chairman, which is U.S. set Civil forth Service below. The Commission, proposal was by introduced as H.R. 8261. 82-911 66 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 67 The Bureau of the Budget advises that enactment of this proposed The Bureau of Labor Statistics has made comprehensive changes in legislation would be in accord with the President's program. its salary survey program SO that beginning with 1967 the survey A similar letter is being sent to the President of the Senate. findings will represent private enterprise salary levels in June rather By direction of the Commission: than in the February-March period. Sincerely yours, Attainment of Federal salary levels comparable with those of private JOHN W. Macy, Jr., Chairman. enterprise is necessary for the Government to meet its responsibility as a good employer and as part of the continuing program to provide STATEMENT OF PURPOSE AND JUSTIFICATION OF A DRAFT LEGISLATIVE Federal employees with pay and working conditions comparable to PROPOSAL TO ADJUST THE RATES OF BASIC COMPENSATION OF CERTAIN those offered by private employers. In good faith, the Government EMPLOYEES OF THE FEDERAL GOVERNMENT, AND FOR OTHER PURPOSES must take this step. While fiscal and economic conditions now prevail- ing do not permit a full step of this magnitude at the present time, a The draft bill (H.R. 8261) would carry out recommendations in the guaranteed timetable will reassure the loyal workers now in the Federal President's message to Congress of April 5, 1967, forwarding the service and will aid in recruiting competent personnel as needed. annual comparison of Federal salaries with salaries paid in private Section 7 of the draft bill would help meet a current critical re- enterprise as provided in section 5302 of title 5, United States Code. cruiting problem. Under the present law, when it is found that the The joint report of the Director of the Bureau of the Budget and the Government is significantly handicapped in recruiting or retaining Chairman of the Civil Service Commission prepared pursuant to well-qualified persons because private enterprise salaries are sub- Executive Order 11073, and their further report of March 30, 1967, stantially higher than salary rates authorized by statute for a given were forwarded with the President's message. occupation, in one or more locations and grades or levels, higher The President's proposals include a 1967 increase in statutory basic pay rates may be established for such categories of positions. salary schedules averaging 4.5 percent and a commitment for two Responsibility for administering this provision of law has been further increases, one in 1968 and one in 1969, to bring statutory delegated to the Civil Service Commission by Executive Order salary schedules by October 1969 up to levels comparable with those 11073. in private enterprise. The four statutory pay systems concerned are Section 5303 of title 5, United States Code, which contains this those of the General Schedule, of the postal field service, of the Foreign authority, further provides that no minimum rate may be set higher Service, and of the physicians, dentists, and nurses in the Depart- than the seventh pay rate presribed by statute for the grade or level. ment of Medicine and Surgery in the Veterans' Administration. Recent experience of Government agencies in competing for college Salary rates reported by the Bureau of Labor Statistics for 1966, graduates to staff positions in essential defense and other key activities eliminating the effects of changes in the universe surveyed, show an has clearly established a need to change this limitation. Competition average private enterprise increase of approximately 3.6 percent. for college graduates particularly in technical fields has intensified Pay raises averaging 7.2 percent, at a cost well over $1 billion, would greatly due to the expanding needs of industry and government at be required for statutory salaries to be made fully comparable with all levels and the inadequate supply of available candidates. This private enterprise pay levels in 1966. From a fiscal and economic has resulted in a rapid spiraling of private industry salary offers to standpoint, full comparability is not possible in fiscal year 1968. college graduates during 1965 and 1966. Most recently this problem Funds in the 1968 budget, however, will permit an average 4.5-percent has arisen in the employment of nurses in certain locations where increase in statutory schedules. This is sufficient to match the 1966 very substantial pay increases have been implemented in non-Federal private enterprise pay rise and, beyond that, to close slightly the hospital facilities. remaining gap between Federal and private enterprise pay levels by Although entry level rates established for college graduates in an additional salary increase of nearly 1 percent. engineering and other technical fields and for hospital nurses in certain Top statutory salaries for the career ranks are now very close to locations have reached the seventh rate limitation, Government offers those in the executive schedule. The President has appointed a com- are simply no longer competitive. The differences are not minor; they mittee to study top executive, legislative, and judicial compensation have been as much as $1,000 to $1,500 per year, and more. Unless and to make recommendations to him by June of this year. Pending action is taken to change the limitation on higher minimum rates the possible future adjustments in pay for these top levels, the career existing deficiency will worsen and seriously undermine the technical schedules in the proposed bill keep their highest salaries below the staffing needs of essential Federal programs. Consequently, section 7 present $26,000 salary for level V of the executive schedule. of the draft bill proposes changing the limitation on the Commission's Section 2 of the draft bill is a key provision. It would guarantee authority from the seventh rate to the maximum rate of the grade. removal of the comparability gap in all four civilian statutory salary At most grades, the maximum is the 10th rate. systems not later than October 1969. This would be done by a two-step Summary of draft bill provisions plan with the first step to take effect in October 1968 closing the com- parability gap by at least one-half and the final step to take effect in Altogether, provisions of the drait bill would immediately make a October 1969. The adjustments in each case would be based on the slight improvement in the relationship of Federal salaries to those in "latest Bureau of Labor Statistics pay survey data available at the private enterprise that was established by the 1966 pay act, would time. In each of these years the adjustment will be based on pay survey aid the Government to recruit and retain a competent work force, and, data more up to date by 3 months than has previously been possible. most importantly, would guarantee full attainment in 1969 of the principle enacted in 1962 that "Federal pay rates be comparable with private enterprise pay rates for the same levels of work." POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 69 who have shown little restraint in the word-and-picture representa- tions of their merchandise. This type of unsolicited advertising deeply irritates thousands of people who have protested to the Post Office Department. The Court noted in its decision that 'such un- solicited advertising "would tend to force public confrontation with the potentially offensive aspects of the work: the brazenness of such an appeal heightens the offensiveness of the publications to those who are offended by such material." This legislation is phrased in keeping with the Ginzburg case to TITLE III-PANDERING ADVERTISEMENT MAIL MATTER cover only that advertising matter which is intended for commercial exploitation of sexually provocative matters It requires the determi- STATEMENT nation by the Postmaster General that the particular mailing piece The provisions of title III are intended to afford the public the a means Post- comes within the category of "pandering advertisements," as that to the mailing of pandering advertisements which the term is used in the Ginzburg case. And if so, an order would be issued master prevent General determines offers for sale matter represented by to the mailer which would advise the mailer to delete the name of advertisements as erotically arousing or sexually provocative. the addressee involved from all mailing lists owned or controlled by the 88th Congress, the House of Representatives passed the sender or his agents or assigns. Such an order by the Postmaster legislation, effective and urgently needed means to prevent the forced matter." entry During H.R. 319, which would have afforded a homeowner into an General is required to further prohibit the sender and his agents or assigns from the sale, rental, exchange, or other transaction involving mailing lists bearing the name of the designated addressee. his home through the U.S. mails of "morally offensive the 89th Congress, the House of Representatives passed lewd, The order would additionally caution mailers that any further During which characterized the mail matter as "obscene, mailing of such matter after 30 days from receipt of such order could H.R. lascivious, 980, indecent, filthy, or vile" rather than "morally offensive." and result in a request to the Attorney General, for an application to be Neither of these bills was considered by the Senate, the strong made to a district court of the United States for an order directing received from many interested parties that in motion pro- compliance with such an order. Violation of such a court order could objections legislation were would give private persons the right to set the lead to punishment by the court as a contempt of court. posed a series of governmental actions which could seriously impede The committee believes that it is time that something be done to dissemination of perfectly mailable matter to the general public. halt this suffusion of sex upon a protesting and objecting populace, have been reviewed, and the proposal contained in title the All of the objections raised during the 88th and 89th Congresses III of this and the saturation of our children with sexual fantasies during their adolescence. is intended to provide a reasonable solution to con- and The committee is mindful that any legislative attempt to impede legislation tinuing problem faced by the homeowner of receiving unsolicited the free circulation of printed matter, particularly in the area of sex- related materials, is confronted with the strictest constitutional undesirable sex-related mail matter. During the past year, the Post Office Department received approxi- the limitations laid down by the Supreme Court in a series of cases running mately United States, bitterly protesting the receipt of offensive, of about a quarter of a million complaints from people throughout sex-oriented from Roth V. U.S., 354 U.S. 476 (1958) down through the Ginzburg case. With these cases in mind, this legislation is intended to afford a matter in the mail. This represents an increase Most of means to prevent a mailer from sending through the mail matter advertising over the number of complaints received 5 years ago. received offering to sell material of an erotic, sexual nature to an addressee 200,000 the complaints are from parents whose minor children have who previously had notified the mailer he did not want to receive such material in the mail. such advertisements. Frequently, a teenager will write to a record club or answer other, an This type of solicitation is referred to in this legislation as "pander- advertisement to such advertisements frequently results in the teenager's of in a teenage or a Scout magazine. Somehow or ing advertisement." Such an advertisement is not obscene in itself, but offers to sell materials which are claimed to be erotically arousing the response reaching the mailing-list market, and subsequently many obscene or sexually provocative. name are annoyed by receiving advertisements for ad- While the procedures prescribed by this legislation are exempted the material teenagers or what is identified in this legislation as "pandering by subsection (h) from the provisions of the Administrative Procedure Act, the benefits of administrative due process are preserved by other vertisement." The public has been demanding that steps be taken to afford parents the provisions of this amendment which require the Postmaster General to stop this material from reaching their children through to grant a hearing if the mailer requests a hearing, and by the usual a U.S. means mails. This legislation is in response to these demands. procedure which is required to be followed by a district court before The most singular development in the field of mail obscenity during a court order is issued. came in the far-reaching decision of the U.S. The Supreme pub- The committee believes that this legislation represents a major the past in year the case of Ginzburg V. U.S., 383 U.S. 463 (1966). upheld step forward in the field of preventive legislation. It is designed to lisher's Court conviction for violation of the postal obscenity law was stop repeated mailings of offensive material rather than to punish the mailer after the mailings have occurred. by the Court because of his "pandering" advertisements. cial The traffic in pornography and will help curb mail-order advertisers decision is expected to be useful in the prosecution of commer- 68 70 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 EXPLANATION OF TITLE III BY SECTIONS 71 COST Section 301 of title III amends chapter 51 of title 39, United States Code, by adding a new section 4009. Subsection (a) of section 4009 subjects a sender or his agent or administering the program contemplated by title III of this bill. There is no possible way of anticipating the additional cost of assign, who mails any "pandering advertisement" which offers for sale matter which the advertisement represents as erotically arousing AGENCY RECOMMENDATIONS or sexually provocative, to an order of the Postmaster General. The order would direct the sender to refrain from further mailings of such pandering advertisements to a designated addressee. H.R. Post 426 and Department, H.R. 8215. presented during extensive hearings held by the on This Office legislation is' based, in part, on the recommendations Subsection (b) authorizes the Postmaster General to issue such an order upon receipt of a notice from an addressee that he has received proposal set forth below. A report is from the Department of Justice in connection with this such mail matter, providing the Postmaster General determines the mail matter to be of the character of pandering advertisement. The U.S. DEPARTMENT OF JUSTICE, order would direct the sender or his agents or assigns to refrain from Hon. THADDEUS J. DULSKI, Washington, D.C., May 29, 1967. further mailings of such matter to the named addressee. Subsection (c) requires the order of the Postmaster General to Chairman, sentatives, Committee on Post Office and Civil Service, House of Repre- expressly prohibit the sender from making further mailings of pander- Washington, D.C. ing advertisements to the designated addressee, effective on the 30th day after receipt of the order. The subsection also requires the order amend views title Department of Justice concerning H.R. request for the DEAR of MR. the CHAIRMAN: This is in response to your to direct the sender, his agents or assigns to delete the name of the designated addressee from all mailing lists and to prohibit the sender, mailing of 39 of the United States Code in order to 8215, proscribe a bill the to The certain matter not desired by addressees. or his agents or assigns, from the sale, rental, exchange, or other transactions involving mailing lists bearing the names of the desig- nated addressees. remarks "Prohibition of of pandering advertisements in the United States Code: for section which would be added to title 39 of the proposed caption the primary purpose of the bill is disclosed in the Subsection (d) authorizes the Postmaster General, when he believes it is intended the bill's sponsor upon its introduction clearly mails. The that the notice has been or is being violated, to serve on the offender a formal complaint stating the Postmaster General's belief and the such material offers to sell "material of an erotic, sexual not itself obscene, to reach advertising matter which, while indicate that reasons for it, giving the offender 15 days to respond if he cares to. Any such response must be in writing. If the Postmaster General, Record (daily edition) is also H3716. not necessarily obscene. 113 nature," Congressional although after appropriate hearing, if requested by the sender, thereafter deter- mines that there is or has been violation of the notice, he is author- which define a the "pandering advertisement" as one which offers for effect, Subsection (a) of the proposed new 39 U.S.C. 4009 would, in ized to request the Attorney General to apply to a district court for an order directing compliance with the notice. The subsection also provocative." advertisement represents as erotically arousing sale or sexually "matter confers authority on the Attorney General to apply for such orders. Subsection (e) confers specific jurisdiction on any district court of advertisement" whether particular mail matter is "of the character of to determine Subsection (b) would authorize the Postmaster General the United States where mail has been sent or received in violation of such a notice, upon application by the Attorney General, to issue an order directing compliance with the notice. It further specifically empowers the court to punish failure to obey such an order as a addressees." refrain from further mailings of such matter to the named agents or assigns to received such matter, "directing the sender and any addressees his who have and to issue an order, at the request of a pandering contempt of court. Subsection (f) provides that the receipt of mail matter 30 days or more after the effective date of the order shall create a rebuttable advertisements" master shall not only prohibit further mailings of the Post- Subsection General (c) would require that the order issued by presumption that such mail was sent after such effective date. Subsection (g) requires the Postmaster General, upon request of assigns," and owned or controlled by the sender his from "all mailing lists deletion of the names of such addressees (1) direct the immediate to the designated addressees but shall also: "pandering any addressee, to include in his order the names of any minor children who have not attained their 19th birthday and who reside with the the sale, (2) prohibit the sender, his agents, and or agents and addressee. bearing the rental, names exchange, of the designated or other transaction addressees.' involving assigns mailing "from lists Subsection (h) exempts the provisions of section 4009 from the provisions of the Administrative Procedures Act. Subsection (i) defines certain terms used in this section for purposes "willfully 1 imprisonment violated" any OF provision a $1,000 of fine, such or an both, for anyone more who than has year's Subsection (d) would provide a criminal penalty of not of clarity and to insure expeditious and effective administration. Section 302 provides that title III shall become effective on the who ing reside for such order to cover an addressee's provisions, includ- Subsection authorization (e) would consist of various technical order. 120th day following the date of enactment of this act. Procedure with him, and an express direction that the Administrative minor children Act "shall not apply to any provisions of this section." 72 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 73 In attempting to inhibit, upon threat of criminal sanctions, the permit the addressee's right to privacy to outweigh the sender's right mailing of any "pandering advertisements" which offer for sale erotic to disseminate constitutionally protected material. As the Depart- or sexual material, although neither the advertisement itself nor the ment has previously stated in its reports to Congress on similar material advertised for sale is obscene, the bill raises a substantial legislative proposals (e.g., our report dated June 3, 1964, on H.R. 319, constitutional problem. Under existing law (18 U.S.C. 1461) the mail- 88th Cong., First sess.), there is strong reason to believe that in ing of an advertisement for such material may constitute a crime, but weighting these relative rights of the sender and the addressee, the only if the advertisement itself or the material advertised is actually Supreme Court would hold that the balance favors the sender. obscene. Cf. Ginzburg v. United States, 383 U.S. 463, 465, note 4 (1966). Finally, as a technical matter, we note that the citation in subsection The constitutionality of Federal legislation to make "pandering" of (e) to "5 U.S.C. 1001-1011," for the reference to the Adminis- nonobscene material a criminal offense-as is here proposed- is an trative Procedure Act, does not reflect the 1966 codification of that open question, even assuming a definition of "pandering" which could title. The current citation should be to "subchapter 2 of chapter 5 withstand attack on the grounds of vagueness. (See dissenting opinion and chapter 7 of title 5 of the United States Code." of Mr. Justice Harlan in Ginzburg, supra at 494.) In view of the above, and despite our continued support of the Moreover, in authorizing the Postmaster General to determine, objective of this legislation, the Department of Justice is unable to without a hearing and without applying prescribed criteria, whether recommend its enactment. particular material is "of the character of a pandering advertisement" The Bureau of the Budget has advised that there is no objection and to thereupon issue an order prohibiting the sender from "further to the submission of this report from the standpoint of the adminis- mailings of such matter to designated addressees," the bill is subject tration's program. to substantially the same objection raised by the Department of Sincerely, Justice in its report, dated April 11, 1967, on H.R. 367 and H.R. 426. RAMSEY CLARK, Those bills would impose upon the sender of mail the risk of antici- Attorney General. pating whether the addressee will subjectively find a particular mail- ing to be as obscene as that addressee had subjectively found a pre- vious mailing to be; the subject bill would impose upon the sender of mail the risk of anticipating whether the Postmaster General will subjectively find a particular advertisement to be of the same "pan- dering" character as he had subjectively found a previous mailing to be. In either case, as we stated in our April 11 report: It is thus inevitable that the proposal would have, as against any sender receiving such notice, a "chilling effect upon the exercise of first amendment rights." Dombrowski V. Pfister, 380 U.S. 479, 487 (1965). Indeed, the "chilling effect" on the sender which would result from receipt of the order contemplated by the subject legislation deliber- ately goes far beyond the proposal of H.R. 367 and H.R. 426. By the very terms of subsection (c) the recipient of an order thereunder would be inhibited from mailing to designated addressees any further material, without limitation, since he would be required to delete those addressees from "all mailing lists," even those which might clearly not involve "pandering advertisements." By the same token, inasmuch as the order issued by the Postmaster General to the sender would inevitably constitute a broad administra- tive restraint on future mailings of any kind of material, procedural due process would seem to require at least the kind or prior notice and hearing afforded by the Administrative Procedure Act. Since the bill expressly renders the Administrative Procedure Act inapplicable, the absence of any judicial or administrative hearing prior to the issuance of the order would seem to run afoul the Supreme Court's admonition that: "Any system of prior restraint of expression comes to this Court bearing a heavy presumption against its constitutional- ity." Bantam Books V. Sullivan, 372 U.S. 58, 70 (1963). By subjecting a sender to criminal sanctions for the mailing of non- obscene matter to an unwilling addressee, the subject legislation would MINORITY VIEWS OF JOE POOL First class and airmail now under the present rates are showing a profit and are operating above 100 percent of cost. I do not think that INDIVIDUAL VIEWS OF HON. EDWARD J. DERWINSKI it is right for this mail to be increased so that it will pay 23 percent TO H.R. 7977 more than its allocated cost. If this increase is approved, first-class mail will have sustained a 50-percent increase since 1960. I think the To be factual this bill should be called "The Public Be Damned American public is entitled to at least a 50-percent increase in service Act of 1967." if they are going to be taxed a 50-percent increase for the handling of In addition to the minority views, which I share, there are other the public's mail. The same objection with respect to the right to better problems relating to the operation of the Post Office Department, and service can be made against increases in all other classes of mail. attempts to correct them were rejected by the committee in its treat- The House Post Office and Civil Service Committee, Subcommittee ment of this legislation. on Facilities and Modernization, of which I am chairman, has been One is the practice of permitting supervisors to be paid less than conducting investigations and holding hearings attempting to help the those employees they supervise. This is a mockery of efficient manage- Post Office Department provide the facilities for a faster handling of ment and the Post Office Department is itself derelict in condoning it. the mail. This modernization is long overdue but we feel that the rate The committee also rejected a proposal to assist, in high cost of increase is not justified until the Post Office Department has improved living areas, the recruitment and retention of postal employees. I its techniques. would favor a complete study applied to all Federal employees to One mistake of the bill in my opinion is the delegation of powers determine those areas of the country in which living costs would over the salaries and pay of certain Federal employees to a commis- dictate a special salary rate adjustment. sion some members of which are appointed by the President. Under It is a disservice to the taxpaying public that the inclusion of a this provision of the bill, the President's authority over not only the salary bill with a postal rate bill prevented a proper discussion of Federal employees will be absolute, but also he will have the power of Federal employees' compensation. life and death over the salaries of Congressmen. This amounts clearly Insofar as this section of the legislation is concerned, I see no to a violation of the philosophy of constitutional government that reason for awarding one category of Federal employees an increase there should be a separation of powers of the coequal branches of the higher than the rest of the workforce. I cannot approve of discrimi- Government, the legislative, judiciary, and the executive. nation against the so-called "classified" employees and suggest that Under this provision, Members of the Congress, Federal judges, whatever the magic percentage of wage increase is decided, that it be heads of the executive departments and agencies, and other officials applied to all Government employees. will be put directly under the thumb of the President. If Congress In an effort to improve a bad bill I intend to offer constructive fails to take affirmative action, his wishes through his controlled amendments on the House floor, hoping to help the Department commission will prevail. Those familiar with the legislative process despite their own objections. Specifically, I will offer or support know it is hard to pass legislation in Congress, especially if the amendments to give the Department needed authority and flexibility administration is opposing it. The President still has the power to in adjusting salary schedules in high cost of living metropolitan areas, recommend legislation under the present laws and this delegation of such as Chicago. As I have stated, I believe that equity requires an this unusual power is a direct attack on the power of Congress itself. equal salary increase for all employees with necessary corrections of To accentuate how absurd this provision is in the bill, let it be the inequities that have been permitted to develop within the postal pointed out that the President himself did not ask for such broad salary structure. powers over salaries and expenses of Federal judges, Members of I will also offer an amendment by which staff employees of Members Congress, or even his own appointees in the executive branch. of the House of Representatives will be covered by provisions similar If Congress passes this provision without even a request being made to those which govern the salary increases of their Senate counterparts. for it, then certainly the present President and future Presidents will It must be emphasized that the bill as produced by the committee interpret this as a mandate from Congress that the Congressmen want is a most imperfect proposal and should not be treated with any no part of fixing salaries and that they are abdicating their role as sanctity. All amendments to be offered deserve careful consideration representatives of the people in the spending of their hard-earned and in this instance the floor of the House will be the place to rework tax money. this bill into a proper form with emphasis on the public interest and I favor proper pay adjustments for Federal employees in 1967, but protection of the aggrieved American taxpayer as he patiently waits I cannot vote to usurp the power of the representatives of the people for long overdue improved mail service. EDWARD J. DERWINSKI. 75 74 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 76 myself. Congressmen should turning stand up it over and just be counted to get a and pay vote raise against for this provision by instead the President of and leave to some commission at the mercy largely of the controlled President for any crumbs increases he should might themselves Also, I do not think that future elected. pay MINORITY VIEWS ON H.R. 7977 throw be determined their way. by a President who has yet to be JOE POOL. CONCLUSIONS AND RECOMMENDATIONS We believe that the enactment of H.R. 7977 is not in the public interest and that the Congress should reject this legislation. Postal rate increases and pay adjustments for postal and other Federal employees should not be included in the same bill. There is no relation- ship between the two issues and Congress should not be forced to accept such a proposal. This supposedly "veto-proof" legislation represents a masterful job of buckpassing between the administration and the majority members of the committee-and with the American public a suffering victim. As a matter of principle, we believe that the American public should not be saddled with a postage rate increase until we can guarantee this same public an improved and efficient postal service. Unfortu- nately, this legislation offers no such guarantees. POSTAL RATE INCREASES According to the proponents of the bill, title I, which increases postal rates on all classes of mail, provides increased postal revenues of $884 million annually. For the first time in the history of the Post Office and Civil Service Committee a general postal rate increase bill of this magnitude was the subject of hearings by only a minority of the members of the com- mittee. In the past hearings on measures of this importance have always been conducted by the full membership of the committee. A subcommittee, composed only of a minority of the members of the committee, conducted hearings, and only 10 members had an oppor- tunity to question the Postmaster General and the mailers and secure information upon which the full committee was to act. Subcommittee disavows own recommendations The subcommittee of 10 of the 26 members then brought a postal increase proposal to the full committee and proceeded to disavow its own recommendations. A new bill was written which bears little resemblance to the subcommittee bill. There has been no testimony presented to the full committee membership by the Postmaster General or the users of the mail, with respect to the provisions con- tained in title I. Committee procedure marked by confusion The House Post Office and Civil Service Committee is organized with an elaborate subcommittee structure which was ignored during the processing of this bill. Parliamentary procedure, especially in deliberations on the pay provisions in the bill, was marked by great confusion, with arbitrary termination of discussion the order of the day. Constant lobbying pressure by administration officials and em- ployee union spokesmen produced numerous changes and counter- 77 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 79 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 78 changes. The bill which finally in which emerged the few from meritorious committee features is a rate are and far mail. Whether these rate increases are excessive or inadequate is impossible to determine due to the fact the bill was rammed through the committee. And at the end of the final session there were a number salary outweighed legislative by its catchall controversial and unwise provisions. of amendments proposed by members which did not receive considera- tion. The confusion which existed and the frustration of a majority Rate burden placed to on the first-class rate increases mail it should profit, bears be pointed the burden out that of of the members of the committee is unbelievable. first-class providing With respect and over air one-half mail, now of the pays showing increased more a than postal its own revenues costs. way and or under $518 Cost ascertainment figures questioned The rate increases contained in this legislation are based on the cost ascertainment report of the Post Office Department, which is the million. the first-class If bill this it First-class will letter increase pay mail 23 mail is rates percent approved now will more have by than been significant Congress its increased allocated it is simply the 50 fact percent means that within there that statement of revenue and cost of handling which is allocated to each class of mail. Time and time again these figures and the method of allocating costs to the various categories of mail were seriously questioned. Many witnesses at the hearings, and in fact many members a has 4-year been period. a steady But deterioration what is more even of the mail slightest service indication during the that same this of the committee, expressed honest concern that the Post Office Department figures are not representative of the true cost of handling period additional of time. revenue And will there be is used not to of improve the Senate the mail Post service. Office and Civil each class of mail. Service We agree Committee, with the Senator chairman A. S. Mike Monroney, when he stated The full committee had no opportunity whatever to study the cost ascertainment figures on which the rate increases are based. We believe that the Department's figures on cost ascertainment should on February 24, 1967: are to increase the price of the first-class is entitled stamp to a not be blindly accepted and that therefore all rate adjustments are by If 20 we percent, going then the American in service. public suspect because they are based on questionable and dubious statistics. We believe that before any postal rate increases are provided the similar matter percentage of fact, it increase is interesting to note postal that rate on September increases, the 21, entire mail classification system now in effect should be reviewed by the Post Office and Civil Service Committees of the Congress. Postmaster 1967, As a the same General day the announced committee the approved expenditure and mechanized of nearly equipment, $300 million in- While second-class mailers are not too unhappy with the bill as passed by the committee and third-class mailers are predictably in cluding the next 16 closed 9 months circuit for TV hardware systems in an attempt to discover faulty will aggrieved, we must note that John Q. Public was unrepresented before the committee. Therefore, first-class mail rates are subject to sub- handling exaggerated operations. claims that these devices question. or "gimmicks" similar expendi- stantial increases in the bill. It shouldn't be necessary to point out mail to second-class mailers that as the Post Office deficit again grows the The the postal service is open administration to serious for need for a rate increase will reappear in 4 to 6 years and very limited improve tures, In ridiculing former Deputy the Eisenhower Postmaster General H. W. Brawley stated on increases will remain to be squeezed out of first- and third-class mail rates. The next go around will find second-class mailers the main 1961: good to move a batch of mail electronic through target remaining within the postal department rate structure. June 1, The committee confusion was accentuated when the chairman of post It does office little on conveyor or no belts-to devices-if, have it sorted at the by end of its the Subcommittee on Postal Rates acquiesced to a series of confusing adjustments and reversals of subcommittee recommendations. There a eyes and canceled eye-catching by automatic journey it must wait overnight its way were 15 sessions devoted to the rate section of the bill. It is interesting breathless for the train and or the plane which will carry it on to note that the pay section, which is in its own right controversia[ toward its ultimate destination. and complex, was pushed through the committee in 2½ working sessions. Unnecessary spending either should with be or eliminated a all of We believe the House should reject this bill and return it to the the We frills believe and unnecessary that domestic expenditures y should Post Office and Civil Service Committee for more complete and objec- tive consideration. be The Government eliminated, President expenditures. particularly has said that during We this agree, is the at so this it time seems time for incongruous unnecessary cutting nonmilitary expendi- that postal the FEDERAL SALARY INCREASES Postmaster tures equal General to more would than one-third announce of the first year's increased bill Title II of the bill provides salary increases for all Federal em- ployees, except so-called "wage-board" employees. Such salary revenues. The other provisions of the postal rate increase The newspapers portion of and the Post increases apply not only this year but additional annual increases are provided for several years to come. are incapable Department of objective lobbyists consideration. have impossible hammered to at properly the committee evaluate mem- the In his message to the Congress on April 5, 1967, the President made only one specific recommendation. He said, "I recommend a 4.5- Office bers postal to rate such increases an extent provided that it is for second-, third-, and fourth-class percent pay increase for civilian employees effective October 1, 1967." POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 81 80 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 modest Politics in postal service recommendation, The proponents which of this would bill have have cost blown which the this by taxpayers fiscal seemingly year $558 1970 million will In standard labor-management relations, it is an accepted principle that wage increases are in some way related to productivity. This annually, cost $2,657 into million a pay annually increase proposal or about five times greater than beyond was principle has never been adopted in Federal circles. One underlying problem in the operation of the Post Office Department is its complete domination by politics and the use of the Department by politically requested this The year, provisions by erroneously the President. of this assume title II, that Federal which the provide employees Congress pay will in increases the be incapable future. postal As of a oriented interests. It is an open secret that in major post offices, such as in Chicago, acting on of pay fact, adjustments three of the for six increases provided employees for (one in for July 1968 assignment, promotion, advancement, and even entrance into the postal field service are made on a political basis. The net result is a matter employees and determine April 1969) in April the are amount 1969 completely and of two such undefined for pay classified increases in the bill is and delegated impossible the authority to the to frustration of dedicated citizens who have an honest desire to devote their skills and ability to a career in the postal service. Efficient ad- ministration would require a stimulus for proper promotion of em- to President without congressional approval. in ployees based on merit. The political operation of the Post Office By reason the real of cost the of above the legislation. provisions effective. We believe the bill it it could is easily exceed Department discourages this. In line with this, legislation has been sponsored (among such predict $3 billion annually when it is fully sponsors are Mr. Gross and Mr. Derwinski) aimed at increasing the Abdication Nowhere of in jurisdiction the President's over salaries message not desirable. on civilian that Congress employee should pay efficiency of the Post Office Department by eliminating political activity through appropriate sanctions and revising the term of office of the Postmaster General and other top officials. The Postmaster increases delegate him is there such powers. the slightest If it is suggestion the its purpose jurisdiction of the over proponents the salaries of General has himself suggested creating a non-Government corporate organization to operate the postal service. We should take him at his the and bill pay toward that of Federal that Congress goal. employees We shall do abdicate not the agree approval that these this of provisions title is desirable. II will of title go a II long is word and our committee's attention should next be devoted to this possibility. way the the the nature implications. of that the For rank example, and file of if Federal title II Powers granted under Quadrennial Commission excessive The powers granted the President under section 216 of the bill are so employees becomes law are a simple aware amendment President's to that law authority in the future over changing adjust- even more offensive to the public interest, if that is possible. Under this section a Quadrennial Commission is created beginning in 1969 ments only three for Federal dates will be will employees eliminated, extend forever, the as it is for and the the next function 3 years of under Congress this to recommend to the President the pay, expenses, and allowances for Members of Congress, Federal judges, heads and assistant heads of the executive departments and agencies, and other officials. Based in bill. make The this area committee adjustments action for in Federal delegating employees authority 5301 of based to title the upon 5 President of the the com- U.S. to upon the Commission's findings, the President is to include his own recommendation to the Congress in his budget with respect to the exact rates of pay and the exact amounts and kinds of expenses and parability Code, pay is contrary policy established to existing law. in President section Section to 5302 submit of title reports 5 of annually the U.S. allowances for the Federal officials cited above. Up to this point such a provision is unnecessary, because indeed Code specifically Congress with requires respect the to bringing Federal enterprise. employees' And salaries section the President has the responsibility to recommend legislation which he believes will improve the operations of the Federal Government. to in 5302(2)(B) line the with of comparable title for revision 5 of the pay of U.S. rates statutory Code in private states pay schedules, specifically: advisable", pay "Such structures, shall rec- be However, section 216 continues by providing that such recom- mendations by the President shall become effective 30 days after transmittal of the budget unless the Congress by specific action ommendations and pay policy, as he (the Congress. President) Nowhere considers in existing provided law is in there this rejects the President's proposal. submitted provision for annually the delegation to the of powers such as are A violation of doctrine of separation of powers We consider this provision of doubtful constitutionality and legislation. While the committee has insisted on the tying rate Federal legislation, salaries, there includ- is, in certainly it is a violation of the time-honored "doctrine of the separa- tion of powers" upon which our system of government is based. ing fact, those little of relationship postal employees, between with postal rate increases and increased The most precise declaration of the "doctrine of the separation of powers" occurs in the Massachusetts Declaration of Rights of salary of employees. 1780: Adequate consideration not given pay provisions the fact full committee Again, adequately we cannot considered overemphasize the pay imposed provisions that during of the this the consideration bill. Also we In the government of this commonwealth, the legislative department shall never exercise the executive and judicial powers, or either of them: The executive shall never exercise never stress of this that title, because many of members the limitations were denied the opportunity to offer 82-911 0-67-6 amendments. 82 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 the legislative and judicial powers, or either of them: the judicial shall never exercise the legislative and executive tive exercise branch, its constitutional over the jurisdiction in cooperation with the 83 powers, or either of them: to the end it may be a government of laws and not of men. employees, generally. pay, expenses, and allowances of Federal execu- "rubber We believe the provisions of title II relegate Again, we say that there is not one scintilla of evidence or testimony that the President desires such broad powers over salaries and expenses for in high places in the We are aware that stamp" there are function those with respect to these the Congress matters. to a mere of Federal judges, Members of Congress, or even his own appointees in the executive branch. the They years have have sought deprecated the power the functions and and activities executive of the branch Congress. who Moreover, such presidential power over the pay, expenses and allowances of the top officials of our Government could lead to abuse executive We Federal branch courts under and the the provisions Congress, authority which of title would over Federal be granted employees, to the and intimidation. In some future administration, judicial decisions could be influenced, executive branch policies could be altered, deci- Government hope which our colleagues destroys the in "doctrine the House reject II. this philosophy of sions of quasi-judicial boards or commissions could be changed and undue pressures could be brought to bear on the Congress if such provisions and we ask in that title they II discussed support us above. in rejecting of the the separation bill, particularly of powers,' the powers were abused either by the Chief Executive or by his assistants who pretended to speak for him. H. R. GROSS. We favor proper pay adjustments for Federal employees in 1967, EDWARD J. DERWINSKI. but we do not believe such provisions should be incorporated in this JAMES A. McCLURE. postal rate increase bill. Further, we believe that such 1967 pay increases for Federal employees should not be jeopardized by including in the same bill provision for future pay increases to be determined exclusively by a President who is yet to be elected. Blank check commitment is dangerous There is another alarming aspect to committing the Federal Government to a $2 billion increase in Federal payroll costs in the next 18 months without further action of the Congress. The unsettled, uncertain condition of our economy, military com- mitments and status of our national debt, are such that a blank check commitment of this nature could be extremely dangerous. The times in which we live, if never before, require extreme fluidity in meeting the day-to-day challenges that threaten our entire existence. Eighteen months from now conditions may be such that we will be calling upon all Americans, including Federal employees, for sacrifices in the national interest. We could very possibly have runaway inflation that would require holding the line everywhere on wage and price increases. It is interesting to note that in the recent past serious consideration was given to the imposition of mandatory wage and price controls on our Nation's economy, and if such should happen in the future how could we justify writing a blank check now for future wage increases that may be contrary to any situation existing at that time? It must not be overlooked that the automatic future pay raises called for in this bill all occur in the same fiscal year, and place an unconscionable burden on any budget that any President may submit for that fiscal year. It is simply unrealistic, if not completely irresponsible, for the Con- gress to issue a postdated blank check without knowing how much money might be in the bank or what the financial condition might be at the time the check is cashed. Congress would be relegated to rubber stamp function Another dangerous feature embodied in title II is its cynical phi- losophy. These provisions simply mean that Congress should no longer POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 85 COMPENSATION AND ALLOWANCES 3541. Pay periods and computation of rates. 3542. Postal Field Service Schedule. 3543. Rural Carrier Schedule. CHANGES IN EXISTING LAW MADE BY THE BILL, [3544. Fourth Class Office Schedule. 3544. Compensation of postmasters at fourth-class offices. AS REPORTED SALARY STEPS AND PROMOTIONS of are shown as follows (existing law proposed to existing In Representatives, changes in existing law made by the be omitted compliance with clause 3 of rule XIII of the Rules of the bill, House as 3551. Appointments to positions in the postal field service. 3552. Automatic advancement by step-increases. 3553. Creditable service for advancement. reported, enclosed in black brackets, new matter is printed in italics, 3554. Compensation of certain temporary employees. law is in which no change is proposed is shown in roman): 3555. Reduction in salary step. 3556. Automatic advancement withheld. 3557. Automatic advancement of substitute employee deferred. TITLE 39, UNITED STATES CODE 3559. Promotions. 3560. Salary protection. * * * HOURS OF WORK AND OVERTIME CHAPTER 43.-APPOINTMENT AND ASSIGNMENT OF FIELD 3571. Maximum hours of work. 3572. Minimum hours of work for hourly rate employees. SERVICE EMPLOYEES 3573. Compensatory time, overtime, and holidays. * * * * 3574. Night work. * 3575. Exemptions. 3576. Holiday service of rural carriers and employees assigned to road duty. § 3301. Personnel requirements The of the postal field service, and fix the number of supervisors be at Postmaster General shall determine the personnel require- 3577. Workweek of postmasters in post offices of the first, second, and third classes. ments and other employees in that service, except that there may not at SPECIAL PROVISIONS FOR POSTAL TRANSPORTATION AND MOTOR VEHICLE SERVICES one time more than one assistant postmaster employed levels and any 3581. Road duty employees. any post office or a total of 55 employees assigned to salary [19 3582. Time credit for delay to trains and highway post offices. 20] 20 and 21 in the postal field service. * * * * * * [§ 3512. Positions in salary level 1. CHAPTER 45.-COMPENSATION IN THE POSTAL FIELD [Janitor. (KP-1). [(1) Basic function.-Cleans, sweeps, and removes trash from SERVICE work areas, lobbies, and washrooms. POSITIONS [(2) Duties and responsibilities.- [(A) Sweeps and scrubs floors and stairs, dusts furniture and Sec. 3501. Ranking of positions. fixtures, cleans washrooms and washes windows (except exterior 3502. Appeals to Civil Service Commission. glass in high buildings). 3511. Key positions. [(B) Moves furniture and helps erect equipment and fixtures 3512. Positions in salary level 1. 3512A. Positions in salary level 2. within offices of the building. 3513. Positions in salary level [2] 3. [(C) In addition, may perform any of the following duties: 3514. Positions in salary level [3] 4. [(i) cleans ice and snow from the sidewalks and drive- 3515. Positions in salary level [4]5. ways, and tends the lawn, shrubbery, and premises of the 3516. Positions in salary level [5] 6. 3517. Positions in salary level [6] 7. post office; 3518. Positions in salary level [7]8. [(ii) washes walls and ceilings. 3519. Positions in salary level [8] 9. [(3) Organizational relationships.-Reports to a foreman or other 3520. Positions in salary level [9] 10. designated supervisor.] 3521. Positions in salary level [10] 11. 3522. Positions in salary level [11] 12. § 3512. Positions in salary level 1 3523. Positions in salary level [12] 13. 3524. Positions in salary level [13] 14. Cleaner. (KP-51) 3525. Positions in salary level [14] 15. (1) Basic function.-Performs a variety of light cleaning and 3526. Positions in salary level [15] 16. housekeeping tasks in connection with the custodial maintenance of a 3527. Positions in salary level [16] 17. postal installation. 3528. Positions in salary level [17] 18. 3529. Positions in salary level [18] 19. (2) Duties and responsibilities.- 3530. Positions in salary level [19] 20. (A) Sweeps, mops, dusts, washes, and otherwise performs light 3531. Positions in salary level [20] 21. cleaning and housekeeping tasks to maintain offices, washrooms, 84 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 87 86 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 (D) Places in cartons on conveyor lines the quantities of lobbies, corridors, stairways, and other areas of the building in items requisitioned from an assigned station, indicating action neat orderly condition. taken opposite each item. and such duties as dusting, waxing, and polishing rugs, (E) Fills and labels bulk shipping orders and moves bulk (B) Performs sweeping and mopping floors, vacuuming window and par- material to dispatch area. office furniture, wastebaskets and trash, washing interior use of ladders (F) Replenishes from stock items stored in individual stations emptying tition glass and fixtures which can be reached without and keeps stations neat and orderly to facilitate filling of requi- sitions. (3) or Organizational scaffolding. relationships.-Reports to a foreman or other (G) Transports bulk and individual shipments on hand trucks. (H) Assembles materials for each requisition where conveyor designated supervisor. lines converge. § 3512A. Positions in salary level 2 (I) Places cartons on assembly table for coordination and Custodian. (1) Basic function.-Performs (KP-1) manual laboring duties in connec- packing. (J) Checks requisition copies and items to assure that proper tion with custody of an office or building. action has been taken. (2) Duties and responsibilities.- (K) Directs items not requiring packing to dispatch area. (A) Performs any combination of the following duties: (L) Combines shipments to reduce packing. 1. 2. Moves Uncrates furniture and assembles and equipment. furniture and fixtures, using (M) Transmits bulk slips and shipping labels to the appropriate person. bolts and screws for assembly. (N) Labels bulk and individual packages with printed labels 3. trash from work areas, lobbies, and washrooms. office Loads and unloads supplies and equipment. to avoid hand labeling. (O) Prepares labels by use of appropriate rubber stamps. 4. Removes Tends to lawns, shrubbery, and premises of the post (P) Seals cartons with stapling machine or tape. and 5. ice and snow from the sidewalks and driveways. (Q) Packs supplies for shipment. 6. cleans Stacks supplies in storage rooms and on shelves, and (R) Stacks and trucks completed orders. completes forms or records as required. (3) Organizational relationships.-Reports to a foreman or other perform cleaning duties as assigned. designated supervisor. (3) Organizational (B) May relationships.-Reports to a foreman or other (c) Post Office clerk. (KP-4). designated supervisor. (1) Basic function.-Sorts incoming and dispatches outgoing mail § 3513. Positions in salary level [2] 3. for a small number of points of separation and destination; provides a limited number of services at public windows. This office has fewer (a) Elevator Operator. (KP-2). (1) Basic function.-Operates a freight or passenger elevator. than 190 revenue units annually. (2) Duties and responsibilities.- (2) Duties and responsibilities.- (A) Sorts incoming mail for general delivery, lock boxes, and (A) Cleans cab of elevator and polishes metal fittings. Operates elevator. one or more delivery routes. (B) (C) In addition, may perform any of the following duties: or (B) Postmarks and prepares mail for dispatch by train or other (i) pushes handcarts of mail on and off elevator elevator; assists mail route; closes, locks, and affixes labels to pouches and mail in unloading material carried on sacks. loading (ii) tends or the heating plant or performs cleaning duties § 3514. Positions in salary level [3] 4. vicinity of the elevator. (a) Guard. (KP-5). (3) Organizational in the relationships.-Reports to an elevator starter (1) Basic function.-Makes rounds of the post office building, and or other designated supervisor. punches clocks at designated stations. (2) Duties and responsibilities.- (b) Order Filler. (KP-3). Basic function.-Selects, assembles, establishments. and makes ready for (A) Patrols buildings, punching watchman's clock where shipment (1) items requisitioned by postal field furnished, checking door and window locks, noting and reporting fire hazards and other irregularities, such as running water and (2) Duties and responsibiliting duties: unclosed doors and windows. Is assigned Separate any sheets of the requisition form, line. fastens copies to (B) Sounds fire alarm. (A) and places on appropriate conveyor (C) Preserves order in corridors and, when necessary, detains clipboards (B) Clarifies writing on carbon copies of requisitions in order persons for interrogation by post-office inspectors or local police. (D) In addition may perform any of the following duties: to minimize errors in filling requisitions. (C) Sets up and prepares shipping containers. (i) Gives directions to the public in building lobby. (ii) Raises and lowers the flag. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 89 88 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 (2) Duties and responsibilities.- (iii) Retrieves lost and found articles and delivers them (A) Unloads mail received by trucks. Separates all mail to the appropriate place. received by trucks and conveyors for subsequent dispatch to (iv) Obtains names of victims, doctors, police, and wit- other conveying units, and separates and delivers working mails nesses in the event of accident. for delivery to distribution areas. (v) Guards property entrances and prevents damage to (B) Places empty sacks or pouches on racks, labels them where property by the public. labels are prearranged or racks are plainly marked, dumps mail (vi) Tends the heating plant of the building. from sacks, cuts, ties, faces letter mail, carries mail to distributors (vii) Operates elevators on a relief basis. for processing, places processed mail into sacks, removes filled work. the sacks and pouches from racks, closes and locks same. Picks up sacks, pouches and outside pieces, separates outgoing bulk mails guard, (3) for dispatch and loads mail onto trucks. (C) Handles and sacks empty equipment, inspects empty (b) File Clerk. (KP-6). (1) Basic function.Sets up and maintains files on one or more equipment for mail content, restrings sacks. (D) Cancels stamps on parcel post, operates canceling machines, subject matters. carries mail from canceling machine to distribution cases. (2) Duties Prepares and responsibilities.- new file folders and maintains existing folders in (E) Assists in supply and slip rooms and operates addresso- correct (A) order prescribed in the established filing system. graph, mimeograph, and similar machines. Transmits as folders or information contained therein folders to to (F) In addition, may perform any of the following duties: authorized (B) personnel (for example, forwards personnel satisfy (i) Acts as armed guard for valuable registry shipments requesting supervisors, or copies data from folders to and as watchman and guard around post office building. (ii) Makes occasional simple distribution of parcel post requests). (C) Opens, sorts, and searches file material, and maintains mail requiring no scheme knowledge. (iii) Operates electric fork-lift trucks. files in up-to-date condition. (D) In addition, may perform any of the following duties: (iv) Rewraps soiled broken parcels. (v) Performs other miscellaneous duties, such as stamping (i) Types from rough draft or plain copy. tickets, weighing incoming sacks, cleaning and sweeping in (ii) Answers telephones. workrooms, offices, and trucks where such work is not (iii) Prepares requisitions for supplies. performed by regular cleaners. (3) Organizational (iv) Operates relationships.-Reports a mimeograph machine. to a designated super- (3) Organizational relationships.-Reports to a foreman or other designated supervisor. visor. (e) Garageman. (KP-9). (c) Typist. (KP-7). (1) Basic function.-Types material such as forms, correspondence, (1) Basic function.-Performs a variety of routine services incidental to the proper maintenance of motor vehicles. and stencils from rough draft or plain copy. (2) Duties and responsibilities.- (2) Duties In and accordance responsibilities.- with instructions and information documents furnished (A) Lubricates trucks in accordance with lubrication charts (A) types forms, standard reports, and personnel and type of truck. by such supervisors, as invitations to bid, orders, contracts, invoices, (B) Changes crankcase oil and filter cleaners and cleans case in conformance with instructions and vehicle mileage. actions and related materials. (B) Types correspondence and memoranda from rough drafts (C) Changes tires and makes necessary repairs. (D) Washes and steam-cleans trucks. or information. (C) general Cuts stencils for instructions, circulars, and other general (E) Assists automotive mechanics. (F) Fuels and oils trucks. uses. (D) In addition, may perform any of the following duties: (G) Cleans garage, garage office, swing room, and washroom, (i) Transcribes from a dictating machine. as assigned. (3) Organizational relationships.-Reports to a foreman of mechan- (ii) (iii) Operates Files, checks a mimeograph requisitions, machine. prepares vouchers, and ics or other designated supervisor. (3) Organizational answers relationships.-Reports to a designated super- the telephone. § 3515. Positions in salary level [4] 5. (a) Motor Vehicle Operator. (KP-10). visor. (1) Basic function.-Operates a mail truck on a regularly scheduled (d) Mail Handler. (KP-8). route to pick up and transport mail in bulk. function.-Loads, unloads, and moves bulk processing mail, and (2) Duties and responsibilities.- performs (1) Basic other duties incidental to the movement and of mail. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 91 90 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 (A) Picks up and delivers bulk quantities of mail at stations, mail (G) Checks, and corrects if necessary, mailing cards presented branch offices, and terminal points; as required, picks up by advertisers bearing names and addresses of patrons or former patrons of the route. from collection boxes and deposits mail in relay boxes. rules of safety, and in accordance with instructions regarding (B) Operates truck in conformity with time schedules and the (H) Furnishes patrons with postal information when requested, and provides change of address cards and other postal forms as requested. route for which responsible. (C) Ascertains the condition of the truck prior to leaving and (I) Reports to supervisor all unusual incidents or conditions upon returning to the garage; reports all accidents, mechanical relating to mail delivery, including condition of street letter boxes and timecards. defects noted, and mechanical failures while on route. (D) In addition, may perform any of the following duties: (J) Regular city carriers assigned to foot delivery routes are bagged mail and packages at post offices and picking up (i) Drives a tractor and semitrailer on occasion, unloading required to become proficient in the casing of mail on at least one other foot delivery route. (K) Substitute city carriers may be assigned to perform clerical mail for delivery to a central point. (ii) Prepares daily trip reports showing work performed. duties and may be required to pass examinations on schemes of (iii) Makes minor mechanical repairs to truck in emer- city primary distribution. (L) Special delivery carriers and special delivery messengers (3) Organizational relationships.-Reports to a superintendent of gencies while on route. receive special delivery mail for delivery and sign c.o.d. and registered items at post office before beginning route; delivery on motor vehicles or other designated supervisor. foot and by vehicle special delivery mail to patrons; obtain sig- (b) City or Special Carrier or Special Delivery Messenger. (KP-11). natures when required; collect amounts and fees on c.o.d.'s; in delivery and collection of mail on foot or by vehicle under varying of (1) Basic function.-Is responsible for the prompt and efficient case of absent patrons, exercise judgment in determining whether to leave mail or leave notice and return mail to post office; return conditions in a prescribed area within a city. As a representative receipts and moneys collected to authorized personnel at post the postal service, maintains pleasant and effective public relations with office. with route patrons and others, requiring a general familiarity with the (M) In addition, may perform any of the following duties: postal laws, regulations, and procedures commonly used, and (i) Checks hotels and other such establishments to insure that mail for residents undeliverable as addressed is not geography of the city. (2) Duties and responsibilities.- improperly held. (A) Routes or cases all classes of mail in sequence of delivery (ii) Delivers stamps or other paper supplies to contract or along an established route. Rearranges and relabels cases as classified stations. required by route adjustments and changes in deliveries. (iii) Serves at carriers' delivery window. (B) Withdraws mail from the distribution case and prepares (iv) Receives and registers, where practical, all letters and it in sequence for efficient delivery by himself or a substitute of packages of first class mail properly offered for registration along an established route. Prepares and separates all classes sub- and gives receipt therefor. mail to be carried by truck to relay boxes along route for (v) Makes delivery on other routes as assigned. (3) Organizational relationships.-Reports to a postmaster or sequent delivery. and on appropriate form. Readdresses mail to be forwarded (C) Enters change of address orders in change of address book and assistant postmaster, or other designated supervisor. (c) Distribution Clerk. (KP-12). marks for appropriate handling other mail addressed to route patrons who have moved. Sorts such mail into throw-back case (1) Basic function.-Separates mail in a post office, terminal, airmail field, or other postal facility in accordance with established for convenient handling by clerks. (D) Delivers mail along a prescribed route, on a regular sched- mail schemes, including incoming or outgoing mail or both. ule, picking up additional mail from relay boxes. Collects from (2) Duties and responsibilities.- from street letter boxes and accepts letters for mailing (A) Makes primary and one or more secondary distributions patrons. Such service may be rendered on foot or by vehicle and of incoming mail by delivery point (for example, classified or in some instances may consist exclusively of parcel post delivery contract station or branch or other delivery unit, general de- livery, lockboxes, rural or star route, or city carrier route) based or collection of mail. (E) Delivers and collects charges on customs, postage-due, and on a knowledge of the distribution scheme established for that office. c.o.d. mail matter. Delivers and obtains receipts for registered and certain insured mail. Receipts for such matter, except insured for (B) Makes primary and one or more secondary distributions mail, at the post office before beginning route and accounts of outgoing mail for dispatch (for example, by city, State, region, it upon return by payments of the amounts collected and delivery train, highway or railway post office, or airmail flight) based on a knowledge of the distribution scheme prescribed by the Postal of receipts taken. (F) Deposits mail collected in the post office upon return from Transportation Service. route; faces such mail for stamp cancellation. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 93 92 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 (B) Adjusts and tunes up engines, cleaning fuel pumps, car- (C) In addition, may perform any of the following duties: buretors, and radiators; regulates timing, and makes other (i) (ii) Examines balances in advance deposit accounts. Maintains records of mails. necessary adjustments to maintain in proper operating condition trucks that are in service. (iii) Faces and cancels mail. (C) Repairs or replaces automotive electrical equipment such (iv) Ties mail and inserts facing slips. as generators, starters, ignition systems, distributors, and wiring; (v) Opens and dumps pouches and sacks. installs and sets new spark plugs. (vi) (vii) Operates Records cancelling and bills machines. mail (for example, c.o.d., regis- (D) Conducts road tests of vehicles after repairs, noting per- formance of engine, clutch, transmission, brakes, and other parts. tered, and SO forth) requiring special services. (E) Operates standard types of modern garage testing equip- Renders service at public windows. ment. (3) Organizational (viii) relationships.-Reports to a foreman or other (F) In addition, may perform any of the following duties: (i) Removes, disassembles, reassembles, and installs designated supervisor. entire engines. (d) Window Clerk. (KP-13). function.-Performs a variety of services at represen- a public (ii) Overhauls transmission, rear end assemblies, and (1) Basic office post office branch or station. effective As a public braking systems. window of of the a post postal service, or maintains pleasant and familiarity with (iii) Straightens frames and axles, welding broken parts tative with patrons and others requiring a general used. where required. (iv) Makes road calls to make emergency repairs. relations postal laws, regulations, and procedures commonly (v) Makes required truck inspections. (2) Duties and postage responsibilities.- stamps, stamped paper, cards, internal stamps rev- (3) Organizational relationships.-Reports to a foreman of me- enue (A) stamps, Sells migratory bird stamps, and postal savings chanics or other designated supervisor. (b) Transfer Clerk. (KP-15). and certificates. from and, after proper identification, mail; delivers makes to (1) Basic function.-Arranges for transfer of mail at junction (B) Accepts post, insured, c.o.d., and registered and issues points between trains and other mail units and observes the separa- patrons collection parcel of required postage, issues necessary receipts, tion, loading and unloading of mail by railroad employees to make general-delivery Verifies second-, mail to patrons. third-, and fourth-class mailings, balances. com- certain that this is done properly. (2) Duties and responsibilities.- puting (C) and maintaining on a current basis mailers' credit for delivery. (A) Provides for the most expeditious transfer of mail from (D) (E) Checks and sets post office stamp-vending meters. machines, Assigns special delivery and registered mail post- observations of the operation of trains, star route, or mail messen- ger vehicles. Government-owned vehicles and platform vehicles. age (F) meters, Receives, and large follows mailers' up, and stamp recommends permit action on patrons' (B) Examines outgoing and incoming cars to determine maximum utilization of space and proper adherence to railroad claims complaints. (G) and Issues and cashes foreign and domestic money orders and safety requirements; reports findings, when necessary, to the district superintendent. postal savings certificates. (C) Decides whether outbound cars in full authorizations ducts (H) reference checks, and completes related Rents post-office boxes, receives rental forms. payments, con- should be held beyond the first available dispatches in order to obtain fuller loading and maximum utilization of the space Provides information to the public concerning postal involving regu- paid for, making certain that this will not unduly delay the arrival lations, (I) mailing restrictions, rates, and other matters of the mail at destination. (D) Studies the routing and loading of mail dispatched from postal (J) In transactions. addition, may perform any of the following duties: his station in storage cars in order to recommend changes which (i) Makes emergency carrier relays. would bring about economies in line haul and terminal charges (ii) in alien and census matters. and effect earlier arrival. Gives similar attention to incoming mail to assure that dispatching divisions are using best routing (3) to a postmaster, assist- and loading methods; reports facts to the district superintendent. (E) Maintains close liaison with foremen of appropriate ant § 3516. Positions in salary level [5] 6. incoming and outgoing trains and vehicles to assure prompt receipt and expeditious dispatch of mail. (a) Automotive function.-Repairs Mechanic. (KP-14). mail trucks, including the and removal other (F) Keeps informed on local holding orders for each outgoing and (1) installation Basic of complete motors, clutches, transmissions, dispatch and requests that departure of unit within these limita- tions be withheld when scheduled connections are delayed. major parts. (G) Prepares list of railroad cars (except railway post office (2) Date operating difficulties of vehicles, cars) in which mail is loaded, and maintains record of mail repairing defects, replacing worn or broken parts. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 95 94 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 (2) Duties and responsibilities.- loaded and railroad company to cancel operation and official unloaded in outgoing and incoming trains. purchases Serves (A) Receives and reviews prescribed claim papers to ascertain whether: notice on unit in its place when necessary. Prepares to indicate (i) All necessary items of the appropriate claim form lesser diagram storage and appropriately labels outgoing cars have been properly completed. destination or next relay point. the loading and unloading of storage (thirty mail feet to (ii) Proof of value has been properly determined. (iii) Appropriate check has been made of applicable (H) individual Inspects piece count of lesser storage units feet. records. secure and estimates volume when more than thirty less); Observes and reports to designated supervisor the mail. any failure (iv) Other necessary information has been supplied. (B) Determines whether amount of claim exceeds amount of of (I) railroad company to afford protection for distributing (J) Qualifies schemes, postal regulations, space rules, the periodically through examination on knowledge and train of loss and the proper amount payable is within the limits of the indemnity. (C) Conducts necessary correspondence in connection with the claim. connections. (K) In addition, may perform any of the following rules: Receipts for, transfers, and delivers office. registered mail (D) Approves amount to be paid, and directs disposition of damaged articles. between (i) trains between train and post (ii) Distributes or mail prescribed for distribution in transfer (E) Maintains prescribed record of claims. (3) Organizational relationships.-Reports to an assistant post- (3) Organizational office. relationships-Reports to a foreman or other master or other designated supervisor. (e) Postmaster. (KP-18). designated supervisor. (1) Basic function.-Is responsible for all operations of a small (c) Distribution Clerk, R.P.O. or H.P.O. (KP-16). post office, including actual performance of mail processing and win- (1) Basic function.-Distributes mail in railway or highway post dow service, disbursement of funds and preparation of required re- office prior to departure and while en route. ports. This office has no employees other than the postmaster and a (2) Duties Determines and responsibilities.- the fastest or most expeditious dispatch such of replacement to serve during his leave; has approximately 40 revenue units annually; has no rural delivery service within its jurisdiction. (A) from the standpoint of assignment. In emergencies, redis- as (2) Duties and responsibilities.- mail wrecks, strikes, and missed connections, expedi- (A) Conducts the activities of the office in such manner as to floods, storms, the mail so as to reach destination by the most office provide prompt and efficient postal service to the patrons of the tributes tious alternative means, for example, by other route. railway post office. or (B) highway Distributes post office, mail airmail rapidly route, into or letter star case or pouches and (B) Maintains direct contact with the public and gives personal attention to complaints. sacks. pouches and sacks in racks and places labels official in (C) Sorts incoming mail for boxholders and general delivery; holders (C) Hangs provided; labels letter cases in accordance with faces, cancels, sorts by destination, ties and sacks outgoing mail. (D) At a window delivers general delivery mail, issues and diagram. mail for dispatch, involving labeling and tying and of cashes money orders, delivers c.o.d. and customs mail, accepts (D) Prepares in packages for distribution in pouches, closing separations and delivers parcel post, registered and insured mail, sells stamps and stamped paper, and collects box rents. letter locking mail sacks and pouches, and maintenance of proper (E) Prepares and submits estimates of operating allowances as for connections en route. (E) In addition, may perform any of the following duties: required. (F) Makes deposits of accountable funds; requisitions stamps (i) Unloads mail and equipment at terminal of left. run. Receives and dispatches mail en route. and stamped paper; requisitions supplies; pays authorized bills. (ii) Examines car to ascertain that no mail is (G) Maintains required office records; prepares and submits (iii) (iv) Convoys registered mail to post office and connecting necessary reports in accordance with instructions. (H) Maintains files for the office. lines. through examination periodically on knowledge and train (3) Organizational relationship.-Administratively responsible to a of (F) distributing Qualifiies schemes, postal regulations, space rules, district manager. § 3517. Positions in salary level [6] 7. of (3) the railway post office car or highway post schedules. Organizational relationships.-Reports to office. a foreman in charge (a) Claims Clerk, Common and Contract Carriers. (KP-19). (1) Basic function.-Audits carriers' claims for the transportation (d) Claims Clerk, Paying Office. (KP-17). of mail to insure their accuracy and correctness of form prior to certify- Basic functions.-Examines claims for loss or damage the of amount insured ing them for payment. (1) c.o.d. mail and determines and approves for payment (2) Duties and responsibilities.- or found to be due under postal regulations. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 97 96 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 Checks original or draft of claims submitted by carriers and § 3518. Positions in salary level [7] 8. using space allocations, reports of railroad space utilization, and data submitted (A) procurement data, records of air carrier flights emergency (a) Foreman, Mails. (KP-21). (1) Basic function.-Supervises a group of employees engaged in weight space procured, and other pertinent reports carrying out assigned tasks connected with the processing of incoming or outgoing mail. by the (B) Corrects districts. errors in drafts of claims and form. returns them to (2) Duties and responsibilities.- the carrier for resubmission the processing in final of claims corrected by continuous error coordina- on claims (A) Lays out work for employees; insures attendance to duties and proper performance of assignments; shifts employees from tion (C) with Expedites the carriers to minimize the incidence of one assignment to another to meet fluctuations in workload; answers questions respecting work progress. submitted. (D) Rechecks resubmitted claims prior to certifying them for (B) Trains new employees and provides continuous on-the- job training for all employees under his supervision. payment. Maintains records pertinent to carrier claims such as flights un- (C) Reports unusual difficulties to a general foreman and scheduled (E) air carrier flights, weight allocations for mail on suggests solutions. Personally resolves problems of a routine of air carriers, Accumulates and air data line and flight prepares schedules. periodic and railroad special reports space, nature. (D) Keeps required records for such matters as time, mail on on (F) subjects related to the purchase and use of hand, and mail processed. in (E) Recommends personnel actions respecting subordinates; maintains morale among the employees in the group; adjusts complaints; supplies leadership necessary to secure maximum charge of office or other designated supervisor. interest and effort from men and promotes cooperation and harmony. (b) Postmaster. (KP-20). function.-Is responsible for all operations window of a post services, office, (3) Organizational relationships.-Administratively responsible to a general foreman or other designated superior. Supervises approxi- (1) Basic actual performance of mail processing and reports. This mately twenty or more employees. including of funds and preparation of required 110 disbursement has one part time clerical employee; has approximately service within its (b) Postmaster. (KP-22). revenue office units annually; has no rural delivery (1) Basic function.-Is responsible for all operations of a post office, including actual participation in processing of mail and window jurisdiction. (2) Duties and responsibilities.- and conducts the activities of the to office in services, disbursement of funds and preparation of required reports. This office has two clerical employees and approximately 140 revenue order (A) Supervises provide prompt and efficient postal service and patrons. units annually, and rural delivery service within its jurisdiction. (B) to Maintains direct contact with the public gives per- (2) Duties and responsibilities.- sonal complaints. (A) Supervises the activities of the office in order to provide limits (C) Appoints by Departmental and Civil Service delivery; attention to personnel to serve in the post office Regulations. within the expeditious handling of the mails, and efficient and courteous postal service to patrons. faces, (D) cancels, Sorts sorts by destination, ties and sacks outgoing issues and prescribed incoming mail for boxholders and general mail. (B) Maintains direct contact with the public and gives personal attention to complaints. At a window delivers general delivery mail, accepts (C) Appoints personnel to serve in the post office within the (E) orders, delivers c.o.d. and customs mail, sells stamps limits prescribed by the Department and Civil Service Regula- cashes and delivers money parcel post, registered and insured mail, tions; selects personnel and trains them in their respective and stamped paper, required and deposits collects of box accountable rents. funds; requisi- positions. (D) Directs the activities of employees; arranges working tions (F) stamps Makes and stamped paper; requisitions supplies; pays schedules of employees and is responsible for the administration authorized bills and makes salary disbursements. of the Efficiency Appraisal System. (G) Prepares and submits annual estimates of manpower (E) Distributes incoming mail for carrier delivery, boxholders needs and Maintains operating required allowances office as records; required. prepares and submits and general delivery; faces, cancels, distributes, ties and sacks outgoing mail; performs general delivery window services; issues necessary (H) reports in accordance with instructions. and cashes money orders; delivers c.o.d. and customs mails; (3) Organizational (I) Maintains a responsible to accepts and delivers parcel post, registered and insured mail; sells stamps, stamped paper, savings bonds, postal savings stamps and certificates, migratory and documentary stamps, and collects a district manager. box rents. 82-911 0-67-7 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 99 98 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 financial accountability of employees in accountable accordance prepares a list of all cars on train in which mail is carried, a record of the mail, and a report of any irregularities in service. with (F) existing Checks instructions; makes bids for daily proposed deposits purchases; of requi- Observes and reports to district superintendent any failure of the railroad company to afford protection to the mail. funds sitions in supplies; local bank; issues obtains checks for employees' salaries and other (F) May personally distribute letter mail for one or more States, and maintain record of pouches received and dispatched. official (G) Prepares disbursements. annual estimates of manpower needs and operat- (3) Organizational relationships.-Administratively responsible to a ing allowances for reports submission of a recurring as required. nature, reflecting summaries, various district superintendent or other designated superior. Directs, through one or more subordinate foremen, clerks assigned to the run. transactions and withholding tax data, cost of disbursement. (H) Prepares of the office, such as personnel salary estimates, morrey (b) Assistant postmaster. (KP-24). retirement order and bond summaries and schedules (1) Basic function.-Serves as the overall assistant to the post- master, providing general direction and supervision over mails, finance, (3) Organizational (I) Maintains a responsible to personnel, and other related activities. This office has approximately sixteen employees, approximately 1,490 revenue units annually, and a district manager. eight carrier routes within its jurisdiction. § 3519. Positions in salary level [8] 9. (2) Duties and responsibilities.- (a) (1) General Basic function.-Directs Foreman.-R.P.O. mail (KP-23). authorized service operations cars. Supervises in a railway a crew (A) Participates in the organization and management of the office to insure expeditious handling of the mails and to provide courteous and efficient service to patrons. post of foremen office train and clerks with two whose or more primary function is the distribution and (B) Reviews and evaluates recommendations referred to the postmaster by subordinates with respect to promotions and exchange of mails en route. disciplining of post office personnel; generally oversees the (2) Duties and responsibilities.- for the proper distribution, exchange, the railway and post dis- training of all personnel for their respective positions. patch of mail Makes decisions concerning the most connections involv- (A) Provides regularly assigned for handling in expeditious dis- (C) Directs a continuous audit program concerning the accountability of responsible finance employees of the office. office cars. rerouting and utilization of alternative situations. (D) Reviews estimates of manpower needs and operating patch, ing (B) irregularly Directs received mail service mail operations and also in in emergency the railway post office allowances for action of the postmaster. (E) Analyzes and reports to the postmaster the daily man- power expenditures and is responsible through designated sub- train with including: (i) Rapid distribution diagrams and of via all classes most advantageous of mail in accordance routing. mails. ordinates for maintaining proper apportionment of authorized allowances to operating units. (ii) (iii) Makeup and exchange of mail official Handling, recording, and protection at of intermediate registered and (F) Gives assistance and direction to key subordinate em- ployees in planning and executing the mail handling, finance, and administrative programs of the post office. terminal (iv) Proper other storage space in train of all offices. utilization of space in each railway and, post except office (G) Reviews reports and recommendations of subordinates and attends to administrative matters essential to the manage- car as charged with relation to transfer to clerks, for proper handling ment of the post office. storage in train. (H) Represents the postmaster in relationships with the mail and unloading of railway post office without cars to public in the area, including representation with employee assure (v) Loading maximum use of available storage space organizations. (I) May personally handle window transactions and perform additional cost. (vi) (vii) Proper Maintenance usage of of mail distribution equipment schemes and supplies. and schedules work elsewhere in the office as the workload requires. (J) Assumes complete responsibility and authority for the of mail routes the in corrected activities condition. of foremen and be clerks required in the to post office in the postmaster's absence and at other times as required. cars and reassigns maximum distribution. Instructs to clerks meet on operating (C) Supervises them to various duties as may proper (3) Organizational relationships.-Administratively responsible to the postmaster. complete practices and procedures and reports failures (c) Postmaster. (KP-25). standards Inspects to the condition district superintendent. of railway post situations. office cars and reports (1) Basic function.-Is responsible for all operations of a post office, including actual participation in processing of mail and window to (D) the railroad company trip report unsatisfactory form covering service of clerks operations, on duty, services, disbursement of funds and preparation of required reports. (E) Completes of train operation, roster worked; This office has approximately six employees, approximately 380 including mails received, particulars worked, and dispatched, and mails not revenue units annually, and has rural delivery service within its jurisdiction. 100 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 101 (H) Reviews and forwards recommendations of foremen re- in (2) a the office order to the of activities the mails, of and efficient specting discipline, promotions, or changes in assignments; approves time and leave requests; submits manpower estimates. (3) Organizational relationships.-Administratively responsible to and courteous postal direct service contact to with the public complaints. on adminis- the a superintendent or assistant superintendent or other designated trative (B) Maintains matters and gives personal attention in the post to office within superior. Directs, through approximately four foremen, employees as assigned. limits selects (C) prescribed Appoints personnel by and Departmental trains to them serve of in and their Civil respective Service arranges Regulations; positions. working (b) Postmaster. (KP-27). (1) Basic function.-Is responsible for all operations of a post office, including direction and supervision of mails, finance, personnel, and is of promotions the Efficiency of employees; Appraisal other related activities. This office has approximately sixteen em- ployees, approximately 1,490 revenue units annually, and city delivery System. (E) Distributes incoming mail for carrier distributes, delivery, ties boxholders and sacks service consisting of eight carrier routes within its jurisdiction. (2) Duties and responsibilities.- and outgoing general mail; delivery; performs faces, general delivers cancels, delivery c.o.d. window and customs service; mails; issues (A) Organizes the post office to insure expeditious handling of mails and to provide courteous and efficient service to the and accepts cashes and delivers money orders; parcel post, bonds, registered postal and savings insured stamps mail, sells and patrons. (B) Maintains direct contact with the public on administrative stamps, certificates, stamped migratory paper, and savings documentary stamps, and collects box matters and gives personal attention to complaints. (C) Appoints personnel to serve in the post office within the rents. (F) Checks financial accountability daily of employees deposits of in accountable accordance limits prescribed by Departmental and Civil Service Regulations; determines that personnel are carefully selected and adequately with funds existing in local instructions; bank; issues obtains checks makes bids for for employees' proposed salaries purchases; and requi- other trained for their respective positions. (D) Directs the activities of employees; arranges working schedules of employees; recommends promotions of employees sitions Prepares supplies; disbursements. annual estimates of manpower needs and operat- and is responsible for the proper administration of the Efficiency official Appraisal System. ing (G) allowances for reports submission of a recurring as required. nature, salary reflecting summaries, various (E) Checks financial accountability of employees in accordance with existing instructions; makes daily deposits of accountable transactions (H) Prepares of the office, such as data, personnel cost estimates, money funds in local banks; obtains bids for proposed purchases; retirement order and and bond withholding summaries tax and schedules of disbursement. requisitions supplies. (F) Prepares annual estimates of manpower needs and op- (3) Organizational (I) Maintains a responsible to erating allowances for submission as required. (G) Prepares reports of a recurring nature, reflecting various transactions of the post office; submits postmaster's accounts a district manager. § 3520. Positions in salary level [9] 10. with supporting vouchers and documents in accordance with existing instructions. (a) General Foreman, Mails. (KP-26). of all or (H) Advertises for bids for various services, including contract part (1) of Basic incoming function.-Directs mails, outgoing foreman mails, or in both, the distribution at a first class post stations, vehicular service, mail messenger service, and vehicular maintenance service, and submits bids, with recommendations, as required. office. (2) Duties (A) Lays and outwork at the beginning of a tour and of (I) Directs the maintenance of files for the office. (J) May personally handle window transactions and perform issues (B) instructions. Oversees work in progress to prevent accumulation work elsewhere in the office as the workload requires. (3) Organizational relationships.-Administratively responsible to mail. (C) Insures that mail is distributed in accordance with estab- a district manager. § 3521. Positions in salary level [10] 11. lished (D) orders Shifts and men instructions. from one foreman to another to keep mails to (a) Building Superintendent. (KP-28). moving. (E) Reports difficulties and suggests corrective measures (1) Basic function.-Directs the janitorial, maintenance, and op- erating services of a large post office building and branches and sta- tions covering an aggregate area of approximately 700,000 square superior. (F) Maintains Assures that required adequate records. on-the-job training is carried out feet, including security, heating and ventilating, mechanical and electrical equipment, and elevator services. to (G) promote employee proficiency. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 103 102 maintenance service, and submits bids, with recommendations, as (2) todial Duties (A) Plans forces and responsibilities. in cleaning, heating, schedules equipment. guarding, and supervises operating, the and cus- re- required. (I) Directs the maintenance of files for the office. (J) May personally handle window transactions and perform pairing needs (B) of Makes the the post building frequent office building and and inspections equipment, maintenance and to and determine force. to determine maintenance to custodial the effi- work elsewhere in the office as the workload requires. (3) Organizational relationships.-Administratively responsible to a district manager. ciency (C) Prepares of the janitorial and answers correspondence relating § 3522. Positions in salary level [11] 12. service. (D) Plans and supervises maintenance or alteration work under (a) Tour Superintendent, Incoming or Outgoing Mails. (KP-30). (1) Basic function.-Directs general foremen in the distribution of contract. (E) Supervises the office incidental force in the to custaration service, dis, incoming mails or outgoing mails on a tour at a large first class post office. (2) Duties and responsibilities.- requisitions, the (F) maintenance Recommends and of reports required transfers, accounts promotions, and records. and disciplinary meas- (A) Provides for the prompt and complete operation of a tour activity, such as incoming mails, outgoing mails, or all first and for custodial personnel. determine repair needs third class outgoing mails. ures (B) Reassigns employees as necessary to meet peakload de- and (G) THE mands; provides direction to subordinate foremen, coordinating the portions of work assigned to them. to (3) the postmaster and chief engineer, (C) Answers questions of subordinate foremen regarding oper- general employees, foreman including of laborers electricians a and other skilled trades. ating problems; refers policy questions to his superior with ap- propriate recommendations. (D) Reviews requests for personnel actions by subordinate (b) (KP-29). (1) Postmaster. Basic function.-Is responsible for of all mails, operations finance, of personnel, a post foremen, recommending final action to superior. (E) Reviews estimates of manpower required, consolidating office, and other including related direction activities. and supervision This office has approximately units annually, twenty- and for recommendation to superior. (3) Organizational relationships.-Administratively responsible to seven eleven employees, approximately 3,060, reve its jurisdiction. an assistant superintendent of mails or other, designated superior. Directs, through general foremen, employees assigned to the tour. (2) insure expeditious handling to the (b) Postmaster. (KP-31). of (A) mails and to and efficient service (1) Basic function.-Is responsible for all operations of a post patrons. Maintains direct contact with the public complaints. on admi histra- office, including direction and supervision of mails, finance, personnel, and other related activities. This office has approximately fifty-three tive (B) matters and gives personnel personal to attention serve in to the post office Regula- within employees, approximately 7,450 revenue units annually, six Govern- (C) Appoints all by Departmental and Civil Service selected and ment-owned vehicle units, no classified stations, and twenty-five city the limits determines prescribed that all personnel are positions. carefully and rural delivery routes within its jurisdiction. (2) Duties and responsibilities.- tions; adequately (D) Directs trained the activities for their respective of all employees; recommends supervises promotions arrange- (A) Organizes the post office to insure expeditious handling of mails and to provide courteous and efficient service to the patrons. ment of employees; of working and schedules is responsible of employees; for the proper administration of (B) Maintains direct contact with the public on administrative matters and gives personal attention to complaints. the Appraisal System. (E) Checks instructions; makes daily deposits of purchases; Efficiency financial accountability of employees in account- accord- (C) Appoints personnel to serve in the post office within the limits prescribed by Departmental and Civil Service Regulations; ance able funds with existing in local bank; obtains bids for proposed determines that personnel are carefully selected and adequately trained for their respective positions. requisitions Prepares supplies. annual estimates of required. manpower needs and (D) Directs the activities of all employees; supervises arrange- ment of working schedules of employees; recommends promotions operating transactions (F) (G) Prepares allowances of the reports post for and office; of submission documents a recurring submits as in postmaster's nature, accordance reflecting accounts with existing various with of employees; and is responsible for the proper administration of the Efficiency Appraisal System. (E) Checks financial accountability of employees in accordance vouchers with existing instructions; makes daily deposits of accountable supporting instructions. stations, (H) Advertises vehicular for service, bids for mail various messenger services, service, including and vehicular contract funds in local bank; obtains bids for proposed purchases; requisi- tions supplies. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 105 104 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 (F) Prepares annual estimates of manpower needs and operating SELECTED CASES.- (H) Investigates the loss, theft, destruction, and damage to allowances for submission numerous reports as required. of a recurring nature, reflecting mail matter through technical analyses of complaints and other (G) Prepares transactions of the post office; submits in postmaster's accordance specialized procedures. various accounts with supporting vouchers and documents (I) Investigates money-order forgeries; investigates complaints of use of the mails to defraud and to operate lotteries. with instructions. existing Advertises for bids for various services, including vehicular contract (J) Investigates personal injuries, motor-vehicle and other (H) vehicular service, mail messenger service, recommendations, and accidents; develops evidence for defense of suits under the so- stations, maintenance service, and submits bids, with called Federal Tort Claims Act; recommends out-of-court settle- ments. as required. Directs the maintenance of files for the office. (K) In any criminal investigation, develops evidence, locates (I) handle window transactions and perform witnesses and suspects; apprehends and effects arrests of postal offenders, presents facts to United States attorney, and collab- (3) work to elsewhere orates as required with Federal and State prosecutors in presen- tation before United States commissioner, grand jury, and trial a district manager. court. § 3523. Positions in salary level [12] 13. (L) Surveys postal service. on an area basis to ascertain and recommend ways of improving service and effecting economies. (a) Postal Inspector. function.-Is (KP-32). responsible in an assigned and territory, investi- (M) Makes investigations of a variety of other matters and (1) Basic all classes of post offices, for inspection service. In heavily performs related duties as assigned. usually including covering all phases of the postal of the time to selected (3) Organizational -Responsible to the inspector-in- gative programs areas may be assigned a majority charge or the assistant inspector-in-charge of the division. Supervises populated types of work as determined by the inspector-in-charge. territory.— trainees and other inspectors as assigned. (b) Postmaster. (KP-33). (2) Duties units to insure and (1) Basic function.-Is responsible for all operations of a post office, (A) with laws protection funds, including direction and supervision of mails, finance, buildings, per- compliance expenditure of postal revenues and appropriated officials on sonnel, and related services. This office has approximately 110 employ- proper and evaluates and reports to administrative opera- ees, approximately 14,350 revenue units annually, 13 government- tional efficiency. Maintains close working relationship with recommendations regional officials owned vehicle units, one classified station and 42 carrier routes within its jurisdiction. and conditions submits and needs of the postal service; acts in (B) to them factual information and as counselor (2) Duties and responsibilities.- (A) Organizes the post office to insure expeditious handling of on and other postal officials and employees decisions. the mails and to provide efficient and courteous postal service to to explaining postmasters instructions, regulations, applicable laws and but not patrons. (C) Investigates armed robbery, mailing of bombs, burglary, and mail violations of postal laws, including, theft of (B) Represents the Post Office Department in its relationships with the public in the area. limited mail, embezzlements, to, obscene literature and pictures, (C) Appoints personnel to serve in the post office within the fraud. Determines the validity and seriousness of charges against limits prescribed by Departmental and Civil Service Regulations; postmasters (D) and other officers and employees and makes pertinent determines that personnel are carefully selected and adequately trained in their respective positions. recommendations. Investigates local and area operating problems jurisdiction, and recom- (D) Supervises the administration of the Efficiency Appraisal System and is responsible for maintaining satisfactory employee mends necessary corrective action, including hurricanes, (E) corrective action, and within his prescribed restoration of relations with representatives of employee organizations and in- dividual employees. initiates service immediately in disaster areas caused by (E) Reviews estimates of manpower needs and operating allow- tornadoes, Maintains floods, liaison and other activities catastrophes. (i) with military installations with ances, submits requests and recommendations as required, and (F) adequate postal service for the military forces; (ii) level; determines that operations are efficiently carried out and expendi- tures authorized in accordance with approved estimates. to insure and State civil defense authorities at the area agencies. (F) Provides for the safeguarding of all moneys, the operation Federal (iii) with branches of Federal and State law enforcement rural (G) delivery, changes in schedules, quarters, recommenda- equipment, Ascertains postal needs for post offices and stations, and maintenance of equipment and other facilities of the post office, and for the expenditure of funds in accordance with applicable laws and regulations. and manpower city and procedures and reports findings and tions to appropriate officials. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 107 106 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 (2) Duties and responsibilities.- mitted (G) Approves by operating officials of the post office for requisitions for supplies and equipment submission sub- to (A) Participates in the organization and management of the office to insure expeditious handling of the mails and to provide courteous and efficient service to patrons. responsible to a (B) Reviews and evaluates recommendations referred to the postmaster by subordinates with respect to promotions and district manager. disciplining of postoffice personnel; generally oversees the training § Station Superintendent, Large Classified Station. (KP-34). 3524. Positions in salary level [13] 14. of all personnel for their respective positions. (C) Directs a continuous audit program concerning the ac- (a) (1) Basic including function.-Directs the distribution, the operations delivery, and of a dispatch large classified of mail countability of responsible finance employees of the office. (D) Reviews estimates of manpower needs and operating station, and all required window services to the public. allowances for action of the postmaster. (2) Duties responsibilities.- (E) Analyzes and reports to the postmaster the daily man- and and supervises the distribution of incoming delivery, and power expenditures and is responsible through designated sub- outgoing (A) Plans mails, the delivery service, including special ordinates for maintaining proper apportionment of authorized and the dispatch of services outgoing to mail. the public at windows, including savings allowances to operating units. (F) Gives assistance and direction by key subordinate officials (B) Supervises and stamped paper, money orders, postal stamps, in planning and executing the mail handling, finance, and admin- sales of stamps and certificates, migratory and documentary items; general istrative programs of the post office. stamps registry and insurance of mail; handling of c.o.d. (G) Reviews reports and recommendations of subordinates and attends to administrative matters essential to the manage- delivery and box mail. (C) Supervises schedules are maintained; consults in the in volume, pa- city and rural carriers and determines adjustment that ment of the post office. (H) Represents the postmaster in relationships with the public delivery establishment of routes to reflect changes establishment or in the area, including representation with employee organizations. and tronage, or population; and recommends (I) Carries out special assignments for and as directed by the changes in location and of maintains collection required boxes. records for personnel postmaster. (J) Assumes complete responsibility and authority for the (D) Directs verifies and approves timecards for payroll new supervisors purposes; post office in the postmaster's absence and at other times as of makes station; manpower estimates and reports; trains required. and in various aspects of station operations. (3) Organizational relationships.-Administratively responsible to employees Requisitions supplies and equipment, stamps, reissuing stamped to the postmaster. (E) and accountable forms from main post office, fixed credit of (c) Postmaster. (KP-36). paper, subordinates as required. Is responsible for entire granted. station and for operation within the allowance (1) Basic function.-Is responsible for all operations of a post Maintains effective relations with large mailers and action the office, including the direction and supervision of mails, finance, build- public; (F) simplifies handling of mail, and takes appropriate ings, personnel, and related services in the main post office, stations, and branches. This office has approximately one hundred and eighty to complaints. (G) meet addition, may perform any of the following duties: employees, approximately 23,700 revenue units annually, twenty-one In (i) Supervises the cleaning and custodial maintenance of Government-owned vehicle units, three classified stations, and sixty- five carrier routes within its jurisdiction. the building. such (ii) as alien registrations, special census reports, or station Makes necessary arrangements for special handling services (2) Duties and responsibilities.- (A) Organize the post office to insure expeditious handling of the mails and to provide efficient and courteous postal service to <<<<<<<<<<<<<<<<<<<<<<<<< <<<<<<<<<<<<<<<<<<<<<<<<< THE THE patrons. (B) Represents the Post Office Department in its relationships em- with the public in the area. a subordinate supervisors, (C) Appoints personnel to serve in the post office within the ployees. limits prescribed by Departmental and Civil Service Regulations; (b) Assistant Basic function.Serves postmaster. (KP-35). as the overall assistant to the general post- determines that personnel are carefully selected and adequately trained for their respective positions. master, particularly over the mails, on finance, administrative, and service hundred and (1) internal operations, and provides functions (D) Supervises the administration of the Efficiency Appraisal System and is responsible for maintaining satisfactory employee direction office. The office has approximately four annually, fifty relations with representatives of employee organizations and of fifty the employees, post approximately vehicle units, 64,000 one revenue classified units station or branch, individual employees. Government-owned and one hundred and thirty carrier routes within its jurisdiction. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 109 108 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 estimates of manpower needs and as operating required, allow- and (b) Postmaster. (KP-38). ances, submits that operations are efficiently carried estimates. out and (E) Reviews requests and recommendations expend- (1) Basic function.-Is responsible for all operations of a post office, including direction and supervision of mails, finance, buildings, itures determines authorized in accordance with approved the personnel, and related services in the main post office, stations, and for the safeguarding of all moneys, of operation the post branches. This office has approximately four hundred and fifty and office, maintenance and for the expenditure of funds in accordance (F) Provides of equipment and other facilities with employees, approximately 64,000 revenue units annually, fifty Government-owned vehicle units, one classified station or branch, and one hundred and thirty carrier routes within its jurisdiction. applicable laws and requisitions regulations. for supplies and equipment submission sub- to (2) Duties and responsibilities.- mitted (G) Approves officials of the post office for (A) Organizes the post office to insure expeditious handling of the mails and to provide courteous and efficient postal service to responsible to patrons. (B) Represents the Post Office Department in its relationships a district manager. with the public in the area. § 3525. Positions in salary level [14] 15. (C) Appoints personnel to serve in the post office within the (a) Assistant function.Serves postmaster. (KP-37). as the overall assistant to the general post- limits prescribed by Departmental and Civil Service Regulations; determines that personnel are carefully selected and adequately master, particularly over the mails, on finance, administrative, and thousand service and two (1) Basic internal operations, and provides functions trained in their respective positions. (D) Supervises the administration of the Efficiency Appraisal direction has approximately one System and is responsible for maintaining satisfactory employee of one classified the <<<<<<<<<<<<<<<<<<<<<<<<< stations THE and annually, sixteen carrier relations with representatives of employee organizations and individual employees. (E) Reviews estimates of manpower needs and operating al- routes within its jurisdiction. lowances, submits requests and recommendations as required, and determines that operations are efficiently carried out and (2) Duties and responsibilities.- in the organization and management and to provide of the expenditures authorized in accordance with approved estimates. office (A) to Participates insure expeditious handling of the mails (F) Provides for the safeguarding of all moneys, the operation courteous and efficient and evaluates service to recommendations patrons. referred to and the and maintenance of equipment and other facilities of the post office, and for the expenditure of funds in accordance with ap- (B) Reviews subordinates with respect to promotions training plicable laws and regulations. postmaster disciplining of by post office personnel; generally oversees the (G) Approves requisitions for supplies and equipment sub- of all personnel Directs a for continuous their respective audit positions. program concerning office. the ac- mitted by operating officials of the post office for submission to the Supply Center or the Department. countability (C) of responsible finance employees of the (3) Organizational relationships.-Administratively responsible to (D) Reviews estimates of manpower needs and operating a regional director or other designated superior. allowances for action and of reports the postmaster. to the postmaster the daily man- sub- § 3526. Positions in salary level [15] 16. power ordinates for maintaining proper apportionment (E) Analyzes expenditures and is responsible through designated of authorized (a) Assistant postmaster. (KP-39). (1) Basic function.-Serves as the overall assistant to the post- allowances operating units. master, particularly on internal operations, and provides general to assistance and direction to key subordinate and officials admin- direction over the mails, finance, administrative and service functions in (F) planning Gives and executing the mail handling, finance, of the post office. This office has approximately three thousand two istrative Reviews programs reports of the and post recommendations office. of subordinates the manage- hundred employees, approximately 400,000 revenue units annually, two hundred Government-owned vehicle units, thirty-four classified and (G) attends to administrative matters essential to stations and branches, and one thousand carrier routes within its ment office. jurisdiction. in (H) Represents including representation with employee directed by the of the post the postmaster in relationship with organizations. the public (2) Duties and responsibilities.- (A) Participates in the organization and management of the the (I) area, Carries out special assignments for and as office to insure expeditious handling of the mails and to provide courteous and efficient service to patrons. postmaster. and authority for required. the post (B) Reviews and evaluates recommendations referred to the Assumes times responsible as to postmaster by subordinates with respect to promotions and disciplining of postoffice personnel; generally oversees the (3) training of all personnel for their respective positions. the postmaster. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 111 110 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 Directs continuous audit program concerning the office. the ac- (G) Approves requisitions for supplies and equipment sub- mitted by operating officials of the post office for submission countability (C) of a responsible finance employees of and (D) Reviews estimates of manpower needs operating to the Supply Center or the Department. (3) Organizational relationships.-Administratively responsible to allowances for action and of reports the postmaster. to the postmaster the daily designated man- a regional director or other designated superior. power subordinates expenditures for maintaining proper apportionment of (E) Analyzes and is responsible through authorized § 3527. Positions in salary level [16] 17. (a) General Superintendent, PTS Division. (KP-41). allowances operating units. Gives to assistance and direction to key subsordinate finance, and officials ad- (1) Basic function.-Directs all activities of a division of the Postal Transportation Service of average size and complexity in terms of in (F) planning and executing the mail handling, numbers of employees and in expenditure of funds, or in terms of the ministrative programs reports of the and recommendations of subordinates manage- importance of the mail gateways in the division, the volume and complexity of the mail and mail handling operations, and concentra- and (G) attends Reviews to administrative matters essential to the tions which create congestions. Is responsible for the transportation, of the post office. the with employee the transfer, distribution, and dispatch of mail in transit, and for the ment efficient and economical operation of the division. public (H) Represents in the area, (2) Duties and responsibilities.- organizations. (I) Carries out special assignments for and as directed by the (A) Directs and coordinates the activities of subordinate district superintendents in planning and effectuating the trans- postmaster. complete responsibility and authority times for the as portation and processing of transit mail within, entering, or emanating from the division; confers with officials of commercial post (J) office Assumes in the postmaster's absence and at other carriers regarding mail handling and transportation, schedules, security of mail in transit, and rates. (3) required. Organizational relationship-Admistrative responsible to (B) Provides, through his assistants, general supervision over the activities of the employees of the division. Establishes man- the postmaster. power controls, effective employee relations, and inspections of (b) Postmaster. (KP-40). function.-Is responsible for all operations of buildings, a post personnel activities, both informally and as required by regulations. office, related services in the main post employees, (1) Basic including direction and supervision of mails, office, finance, stations and (C) Exercises administrative control over the district su- personnel, branches. This and office Gov- perintendents and, through them, the constituent field units such as transfer offices, airmail fields, terminals, railway post office approximately ernment-owned 106,000 vehicle units, lines, highway post office lines, and contract carriers such as and two hundred carrier routes within its jurisdiction. star routes and mail messenger routes, and related operating units; maintains financial control of the division, reporting on (2) Duties responsibilities.- and the post office to insure expeditious handling service to of expenditures and requirements as directed. the (A) mails Organizes and to provide courteous and efficient postal (D) Maintains liaison with airlines, railroads, trucklines, and other contract carriers; contacts major publishers, mail-order patrons. (B) Represents the Post Office Department in its relationships houses, and other large volume patrons with respect to mass mailing problems. with (C) Appoints by Departmental and Civil Service and adequately the public in personnel the area. to serve in the post office Regulations; within the (E) Coordinates division activities with those of contiguous divisions and with other segments of the Post Office Department limits determines prescribed that personnel are carefully selected within the area. (3) Organizational relationships.-Administratively responsible to trained respective positions. System relations with representatives of employee organizations (D) Supervises and is responsible for maintaining satisfactory and in- in their the administration of the Efficiency Appraisal employee a regional director. Directs, through an assistant and district super- intendents, up to three thousand three hundred employees. (b) Assistant postmaster. (KP-42). dividual employees. estimates of manpower needs and operating required, (1) Basic function.Serves as the overall assistant to the post- master, particularly on internal operations, and provides general allowances, that operations are efficiently carried estimates. out (E) Reviews submits requests and recommendations as and direction over the mails, finance, administrative and service functions of the post office. This office has approximately eight thousand em- and determines authorized in accordance with approved operation ployees, approximately 1,000,000 revenue units annually, four hundred expenditures Provides for the safeguarding of all moneys, the of the post Government-owned vehicle units, fifty classified stations and branches, (F) of equipment and other facilities with and one thousand four hundred carrier routes within its jurisdiction. and office, maintenance and for the expenditure of funds in accordance applicable laws and regulations. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 112 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 113 (E) Reviews estimates of manpower needs and operating (2) Duties and responsibilities.- in the organization and management and to provide of the allowances, submits requests and recommendations as required, office (A) to Participates insure expeditious handling of the mails and determines that operations are efficiently carried out and expenditures authorized in accordance with approved estimates. courteous Reviews and efficient and evaluates service to recommendations patrons. referred to and the (F) Provides for the safeguarding of all moneys, the operation (B) by subordinates with respect to promotions the training and maintenance of equipment and other facilities of the post postmaster disciplining of post office personnel; generally oversees office, and for the expenditure of funds in accordance with appli- cable laws and regulations. of all personnel Directs for continuous their respective audit positions. program concerning office. the ac- (G) Approves requisitions for supplies and equipment sub- countability (C) of a responsible finance employees of the mitted by operating officials of the post office for submission to (D) Reviews estimates of manpower needs and operating al- the Supply Center or the Department. (3) Organizational relationships.-Administratively responsible to lowances for action and of reports the postmaster. to the postmaster the daily man- sub- a regional director or other designated superior. (E) Analyzes expenditures and is responsible through designated of authorized § 3528. Positions in salary level [17] 18. power ordinates for maintaining proper apportionment (a) General Superintendent, Largest PTS Division. (KP-44). allowances operating units. to assistance and direction to key subordinate and officials ad- (1) Basic function.-Directs all activities of one of the largest in (F) planning Gives and executing the mail handling, finance, divisions of the Postal Transportation Service in terms of numbers of employees and in expenditure of funds, as well as in terms of the ministrative Reviews programs reports of and the post recommendations office. of subordinates the importance of the mail gateways in the division, the volume and com- and (G) attends to administrative matters essential to manage- plexity of the mail and mail handling operations, and concentrations which create congestions. Is responsible for the transportation, transfer, ment office. of Represents the post the postmaster in relationships with organizations. the public distribution, and dispatch of mail in transit, and for the efficient and in (H) including representation with employee directed by the economical operation of the division. the (I) area, Carries out special assignments for and as (2) Duties and responsibilities.- (A) Directs and coordinates the activities of subordinate postmaster. Assumes complete responsibility and authority other times for the as district superintendents in planning and effectuating the trans- post (J) office in the postmaster's absence and at portation and processing of transit mail within, entering, or emanating from the division; confers with officials of commercial (3) required. Organizational relationsips-Administrive responsible to carriers regarding mail handling and transportation schedules, security of mails in transit, and rates. the postmaster. (B) Provides, through his assistants, general supervision over (c) Postmaster. (KP-43). the activities of the employees of the division. Establishes man- Basic function.-Is responsible for all operations of buildings, a post power controls, effective employee relations, and inspections of (1) direction and supervision of mails, finance, stations, and personnel activites, both informally and as required by regulations. office, including and related services in the main post office, two hundred (C) Exercises administrative control over the district super- personnel, This office has approximately one thousand annually, one intendents and, through them, the constituent field units such as branches. units sixteen transfer offices, air mail fields, termi ials, railway and post office 1 units, carrier lines, highway post office lines, and contract carriers such as star classified stations and ninety routes and mail messengers routes, and related operating units; maintains financial control of the division, reporting on expendi- routes within its jurisdiction. tures and requirements as directed. (2) Duties and responsibilities.- the post office to insure expeditious handling service (D) Maintains liaison with airlines, railroads, trucklines, and of (A) the mails Organizes and to provide courteous and efficient postal other contract carriers; contacts major publishers, mail-order houses, and other large volume patrons with respect to mass to patrons. (B) Represents the Post Office Department in its relationships mailing problems. (E) Coordinates division activities with those of contiguous with public in the area. the all personnel to serve in the post office Regula- within divisions and with other segments of the Post Office Department (C) limits Appoints prescribed by Departmental and Civil Service selected and within the area. the tions; determines that all personnel are carefully (3) Organizational relationships.-Administratively responsible to a regional director. Directs, through an assistant and district super- adequately trained the in their administration respective of positions. the Efficiency Appraisal employee intendents, approximately three thousand three hundred or more (D) Supervises and is responsible for maintaining satisfactory and employees. System relations with representatives of employee organizations 82-911 0-67-8 individual employees. 114 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 115 (B) Represents the Post Office Department in is relationships (b) Assistant postmaster. (KP-45). Basic function.-Serves as the overall assistant to the post- di- with the public in the area. master, rection over the mails, finance, administrative, and service thousand (1) particularly on internal operations, and provides general functions (C) Appoints personnel to serve in the post office within the limits prescribed by Departmental and Civil Service Regulations; determines that personnel are carefully selected and adequately of the post office. This office has approximately twenty thou- trained for their respective positions. employees, approximately 2,500,000 revenue units annually, one sand hundred Government-owned motor-vehicle units, sixty-six (D) Supervises the administration of the Efficiency Appraisal classified one stations and branches, and three thousand two hundred System and is responsible for maintaining satisfactory employee relations with representatives of employee organizations and in- carrier routes within its jurisdiction. dividual employees. (2) Duties and responsibilities.- office to insure expeditious handling of the mails and to provide (A) Participates in the organization and management of the (E) Reviews estimates of manpower needs and operating allowances, submits requests and recommendations as required, and determines that operations are efficiently carried out and courteous and efficient service to patrons. (B) Reviews and evaluates recommendations referred to dis- the expenditures authorized in accordance with approved estimates. postmaster by subordinates with respect to promotions and (F) Provides for the safeguarding of all moneys, the operation ciplining of post-office personnel; generally oversees the training and maintenance of equipment and other facilities of the post office, and for the expenditure of funds in accordance with applic- of all personnel for their respective positions. (C) Directs a continuous audit program concerning the ac- able laws and regulations. countability of responsible finance employees of the office. (G) Approves requisitions for supplies and equipment sub- (D) Reviews estimates of manpower needs and operating allow- mitted by operating officials of the post office for submission to the Supply Center or the Department. ances for action of the postmaster. expenditures and is responsible through designated subordinates to (E) Analyzes and reports to the postmaster the daily manpower (3) Organizational relationships-Administratively responsible to a regional director or other designated superior. for maintaining proper apportionment of authorized allowances § 3529. Positions in salary level [18] 19. operating units. Postmaster. (KP-47). (F) Gives assistance and direction to key subordinate officials ad- (1) Basic function.-Is responsible for all operations of a large post in planning and executing the mail handling, finance, and office, including direction and supervision of mails, finance, buildings, ministrative programs of the post office. personnel, and related services in the main post office and stations (G) Reviews reports and recommendations of subordinates and of and branches. This office has approximately eight thousand employ- attends to administrative matters essential to the management ees, approximately 1,000,000 revenue units annually, four hundred the post office. Government-owned vehicle units, fifty classified stations and branches, (H) Represents the postmaster in relationships with the public and one thousand four hundred carrier routes within its jurisdiction. in the including representation with employee organizations. (2) Duties and responsibilities.- (I) Carries area, out special assignments for and as directed by the (A) Organizes the post office to insure expeditious handling of postmaster. (J) Assumes complete responsibility and authority for the post the mails and to provide courteous and efficient postal service to patrons. office in the postmaster's absence and at other times as required. (B) Represents the Post Office Department in its relationships (3) Organizational relationships.-Administratively responsible to with the public in the area. the postmaster. (C) Appoints personnel to serve in the post office within the (c) Postmaster. (KP-46). limits prescribed by Departmental and Civil Service Regulations; (1) Basic function.-Is responsible for all operations of a first class determines that personnel are carefully selected and adequately office, including direction and supervision of mails, finance, and trained for their respective positions. buildings, post personnel, and related services in the main post office thousand (D) Supervises the administration of the Efficiency Appraisal stations and branches. This office has approximately three System and is responsible for maintaining satisfactory employee two hundred employees, approximately 400,000 revenue units an- relations with representatives of employee organizations and indi- nually, two hundred Government-owned vehicle units, thirty-four within vidual employees. classified stations and branches, and one thousand carrier routes (E) Reviews estimates of manpower needs and operating allow- ances, submits requests and recommendations as required, and its jurisdiction. determines that operations are efficiently carried out and expend- (2) Duties and responsibilities.- itures authorized in accordance with approved estimates. (A) Organizes the post office to insure expeditious handling of (F) Provides for the safeguarding of all moneys, the operation the mails and to provide courteous and efficient postal service to and maintenance of equipment and other facilities of the post patrons. office, and for the expenditure of funds in accordance with appli- cable laws and regulations. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 117 116 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 (G) Approves requisitions for supplies and equipment sub- to (C) Administers routing, distribution, and transportation of mitted by operating officials of the post office for submission mail within and in transit through the region. (D) Arranges for the provision of adequate facilities and equip- (3) responsible to ment for all postal functions in the region. (E) Administers the personnel program of the region, including a director employment, placement, training, evaluation of positions, em- § 3530. Positions in salary level [19] 20. ployee relations, and other personnel functions. (F) Authorizes and issues allowances for all expenditures and Postmaster. (KP-48). (1) Basic function.-Is responsible for all operations of one finance, of the exercises budgetary controls. largest buildings, personnel, and related services in the main post thousand offices, including direction and supervision of mails, office, sta- (G) Administers cost reduction programs and provides indus- trial engineering services to operating segments of the region. tions approximately 2,500,000 revenue units annually, one classified sta- and branches. This office has approximately twenty thousand em- (H) Maintains effective public relations with the general public, large mail users, and with Federal, State, and municipal ployees, hundred Government-owned vehicle units, sixty-six routes authorities. one tions and branches, and three thousand two hundred carrier (3) Organizational relationships.-Administratively responsible to the Deputy Postmaster General. Directs, through subordinate within its jurisdiction. officials approximately thirty thousand to thirty-five thousand em- (2) Duties (A) Organizes and responsibilities.- the post office to insure expeditious handling service ployees in some three thousand offices within the region. of the mails and to provide courteous and efficient postal * * * * * * § 3542. Postal Field Service Schedule. to (B) patrons. Represents the Post Office Department in its relationships [(a) There is established a basic compensation schedule for posi- with the public in the area. tions in the postal field service which shall be known as the Postal limits prescribed by Departmental and Civil Service Regu- and (C) Appoints personnel to serve in the post office within the Field Service Schedule and for which the symbol shall be "PFS". Except as provided in sections 3543 and 3544 of this title, basic lations; determines that personnel are carefully selected compensation shall be paid to all employees in accordance with such adequately trained in their respective positions. schedule. System and is responsible for maintaining satisfactory employee and (D) Supervises the administration of the Efficiency Appraisal POSTAL FIELD SERVICE SCHEDULE relations with representatives of employee organizations Per annum rates and steps PFS individual employees. (E) Reviews estimates of manpower needs and operating 1 2 3 4 5 6 7 8 9 10 11 12 allowances, submits requests and recommendations as required, and and determines that operations are efficiently carried out 1 $4,204 $4,343 $4,482 $4,621 $4,760 $4,899 $5,038 $5,177 $5,316 $5,455 $5,594 $5,733 2 4,552 4,701 4,850 4,999 5,148 5,297 5,446 5,595 5,744 5,893 6,042 6,191 expenditures authorized in accordance with approved estimates. 3 4,919 5,085 5,251 5,417 5,583 5,749 5,915 6,081 6,247 6,413 6,579 6,745 4 (F) Provides for the safeguarding of all moneys, the operation 5,331 5,507 5,683 5,859 6,035 6,211 6,387 6,563 6,739 6,915 7,091 7,267 5 5,697 5,888 6,079 6,270 6,461 6,652 6,843 7,034 7,225 7,416 7,607 7,798 and maintenance of equipment and other facilities of the with post 6 6,113 6,316 6,519 6,722 6,925 7,128 7,331 7,534 7,737 7,940 8,143 8,346 7 6,545 6,763 6,981 7,199 7,417 7,635 7,853 8,071 8,289 8,507 8,725 office, and for the expenditure of funds in accordance 8 7,088 7,323 7,558 7,793 8,028 8,263 8,498 8,733 8,968 9,203 9 7,665 7,920 8,175 8,430 8,685 8,940 9,195 9,450 9,705 9,960 10 8,345 8,628 8,911 9,194 9,477 9,760 10,043 10,326 10,609 10,892 applicable (G) Approves laws and requisitions regulations. for supplies and equipment sub- 11 9,221 9,536 9,851 10,166 10,481 10,796 11,111 11,426 11,741 12,056 12 10,202 10,549 10,896 11,243 11,590 11,937 12,284 12,631 12,978 13,325 mitted by operating officials of the post office for submission to 13 11,274 11,663 12,052 12,441 12,830 13,219 13,608 13,997 14,386 14,775 14 12,427 12,859 13,291 13,723 14,155 14,587 15,019 15,451 15,883 16,315 15 13,736 14,210 14,684 15,158 15,632 16,106 16,580 17,054 17,528 18,002 (3) responsible to 16 15,179 15,707 16,235 16,763 17,291 17,819 18,347 18,875 19,403 19,931 17 16,793 17,380 17,967 18,554 19,141 19,728 20,315 20,902 21,489 22,076 18 18,530 19,145 19,760 20,375 20,990 21,605 22,220 22,835 23,450 24,065 a regional director. 19 20,525 21,210 21,895 22,580 23,265 23,950 24,635 25,320 20 22,760 23,520 24,280 25,040 25,800 § 3531. Positions in salary level [20] 21. Regional Director. (KP-49). (1) Basic function.-Directs the management of all postal activities basic (a) There are established basic compensation schedules for positions within the jurisdiction of an assigned region in accordance with in the postal field service which shall be known as the Postal Field Service departmental policies and with functional direction and guidance Schedules and for which the symbol shall be "PFS". Except as provided in from Assistant Postmasters General. sections 3543 and 3544 of this title, basic compensation shall be paid to (2) Duties (A) Develops and responsibilities.- and formulates policies and practices for the all employees in accordance with such schedules. region within basic policies and instructions of the Postmaster General. (B) Manages post office operations. 118 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 119 (To be for the period beginning on the first day of the before first pay the period offec- beginning effective on or after October 1, 1967, and ending immediately below) RURAL CARRIER SCHEDULE tive date of Postal Field Service Schedule II set forth Per annum rates and steps POSTAL FIELD SERVICE SCHEDULE I 9 10 11 12 1 2 3 4 5 6 7 9 10 11 12 2 3 4 5 6 7 PFS 1 $4,666 $4,940 $5,077 $5,214 $5,351 $5,488 $5,625 Carrier in rural delivery $4,803 5,930 6,077 service: 1 $4,118 $4,255 $4,392 $4,529 4,901 5,048 5,195 5,342 5,489 5,636 5,783 4,460 4,607 4,754 5,932 6,090 6,248 6,406 6,564 Fixed compensation 2 5,300 5,458 5,616 5,774 6,799 6,975 7,151 per annum $2,391 $2,507 $2,623 $2,739 $2,855 $2,971 $3,087 $3,203 $3,319 $3,435 $3,551 $3,667 3 4,826 4,984 5,142 5,215 5,743 5,919 6,095 6,271 6,447 6,623 5,391 5,567 6,025 6,212 6,399 6,773 6,960 7,147 7,334 7,521 7,708 Compensation per 4 5 5,838 6,586 5,651 6,852 7,054 7,256 7,458 7,660 7,862 8,064 8,266 mile per annum for 6,246 6,448 6,650 7,987 8,202 8,417 8,632 8,847 each mile up to 30 6 6,044 7,127 7,342 7,557 7,772 9,249 miles of route 88 90 92 94 96 98 100 102 104 106 108 110 7 6,482 6,697 6,912 8,094 8,325 8,556 8,787 9,018 7,170 7,401 7,632 7,863 For each mile of 6,939 9,009 9,258 9,507 9,756 8 8,262 8,511 8,760 route over 30 miles. 25 25 25 25 25 25 25 25 25 25 25 25 9 7,515 7,764 8,013 8,668 8,938 9,208 9,478 9,748 10,018 10,288 10,558 10 8,128 8,398 8,846 9,146 9,746 10,046 10,346 10,646 10,946 11,246 11,546 11 9,446 11,111 11,445 11,779 12,113 12,447 12,781 12 9,775 10,109 10,443 10,777 10,815 11,183 11,551 11,919 12,287 12,655 13,023 13,391 13,759 14,127 13 12,777 13,190 13,603 14,016 14,429 14,842 15,255 15,668 14 11,951 12,364 13,631 14,089 15,005 15,463 15,921 16,379 16,837 17,255 (a) There are established basic compensation schedules which shall 13,173 14,547 15 17,074 17,576 18,078 18,580 19,082 14,564 15,066 15,568 16,070 16,572 be known as the Rural Carrier Schedules and for which the symbol shall 16 16,090 16,650 17,210 17,770 18,330 18,890 19,450 20,010 20,570 21,130 17 19,047 19,669 20,291 20,913 21,535 22,157 22,779 23,401 be "RCS". Compensation shall be paid to rural carriers in accordance 18 17,803 18,425 19,642 21,598 22,250 22,902 23,554 24,206 24,858 25,510 19 20,294 20,946 with such schedules. 25,388 26,114 20 21,758 22,484 23,210 23,936 24,662 26,840 24,126 24,932 25,738 26,544 26,960 21 RURAL CARRIER SCHEDULE I [To be effective for the period beginning on the first day of the first pay period beginning on or after October 1, 1967, POSTAL FIELD SERVICE SCHEDULE II and ending immediately before the effective date of Rural Carrier Schedule II set forth below] [To be effective on the first day of the first pay period beginning on or after July 1, 1968] Per annum rates and steps PFS 1 2 3 4 5 6 7 8 9 10 11 12 1 2 s 4 5 6 7 8 9 10 11 12 $4,900 $5,044 $5,188 $5,332 $5,476 $5,620 $5,764 $5,908 1 $4,468 $4,612 $4,756 5,919 6,073 6,227 6,381 $4,324 4,841 4,995 5,149 5,303 5,457 5,611 5,765 Fixed compensation $2,531 $2,658 $2,785 $2,912 $3,039 $3,166 $3,293 $3,420 6,894 $3,547 $3,674 $3,801 $3,928 2 4,687 6,230 6,396 6,562 6,728 5,234 5,400 5,566 5,732 5,898 6,064 For each mile up to 30 miles 3 5,068 6,586 6,771 6,956 7,141 7,326 7,511 of route 94 96 98 6,401 100 102 8,094 104 106 108 110 112 114 116 5,476 5,661 5,846 6,031 6,216 4 6,918 7,114 7,310 7,506 7,702 7,898 For each mile of route over 8,680 5,938 6,134 6,330 6,526 6,722 7,408 7,620 7,832 8,044 8,256 8,468 30 25 25 25 25 25 25 5 25 25 25 25 25 25 6,348 6,560 6,772 6,984 7,196 6 7 7,033 7,259 7,937 8,163 8,389 8,615 8,841 9,067 9,293 6,807 7,485 7,711 9,473 9,716 7,529 7,772 8,015 8,258 8,501 8,744 8,987 9,230 8 7,286 7,891 8,415 8,677 8,939 9,201 9,463 9,725 9,987 10,249 RURAL CARRIER SCHEDULE II 9 8,153 8,535 8,819 9,103 9,387 9,671 9,955 10,239 10,523 10,807 11,091 10 10,234 10,549 10,864 11,179 11,494 11,809 12,124 13,423 [To be effective on the first day of the first pay period beginning on or after July 1, 1968] 11 9,289 9,604 9,919 10,264 10,615 10,966 11,317 11,668 12,019 12,370 12,721 13,072 12 11,743 12,130 12,517 12,904 13,291 13,678 14,065 14,452 14,839 13 11,356 12,549 12,983 13,417 13,851 14,285 14,719 15,153 15,587 16,021 16,455 14 15,275 15,756 16,237 16,718 17,199 17,680 18,161 Per annum rates and steps 15 13,832 14,313 14,794 15,293 15,820 16,347 16,874 17,401 17,928 18,455 18,982 19,509 20,036 16 17,483 18,071 18,659 19,247 19,835 20,423 21,011 21,599 22,187 1 2 3 4 5 6 7 8 9 10 11 12 17 16,895 21,307 21,960 22,613 23,266 23,919 24,572 18,695 19,348 20,001 20,654 18 20,625 21,310 21,995 22,680 23,365 24,050 24,735 25,420 26,105 26,790 19 22,848 23,610 24,372 25,134 25,896 26,658 27,420 27,800 Fixed compensation $2,668 $2,804 $2,940 $3,076 $3,212 $3,348 $3,484 $3,620 $3,756 $3,892 $4,028 $4,164 20 25,333 26,179 27,025 27,871 27,900 For each mile up to 30 miles 21 of route 99 101 103 105 107 109 111 113 115 117 119 121 For each mile of route over * 30 25 25 25 25 25 25 25 25 25 25 25 25 * * * § 3543. Rural Carrier Schedule. [(a) known as the Rural Carrier Schedule and for which the in There is established a basic compensation schedule which symbol shall [§ 3544. Fourth Class Office Schedule. [(a) There is established a basic compensation schedule which be shall be "RCS." Compensation shall be paid to rural carriers ac- shall be known as the Fourth Class Office Schedule and for which the cordance with this schedule. symbol shall be "FOS", for postmasters in post offices of the fourth class, which is based on the revenue units of the post office for the preceding fiscal year. Basic compensation shall be paid to postmasters in post offices of the fourth class in accordance with this schedule. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 121 120 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 fiscal year the revenue units are less than 33, the post office shall be FOURTH CLASS OFFICE SCHEDULE relegated to the fourth class and the basic salary of the postmaster shall be fixed in the manner provided in subsection (b) of this section. Per annum rates and steps [(h) When required by the Postmaster General a postmaster at a Revenue units 8 9 10 11 12 fourth-class office shall, and any other postmaster in PFS level 5 1 2 3 4 5 6 7 when permitted by the Postmaster General may, furnish quarters, 418 $4, 551 $4,684 $4,817 $4,950 $5,083 $5, 216 $5, 349 $5, 482 fixtures, and equipment for an office on an allowance basis. The allow- 30 but fewer than 36 $4,019 $4, 152 $4, 285 $4, 4,447 4,569 4,691 4, 813 4,935 5, 057 ance for this purpose shall be an amount equal to 15 per centum of 3,837 3,959 4, 081| 4, 203 4, 325 24 but fewer than 30 3, 715 ,272 3, 376 584 3,688 3,792 3,896 4,000 4,104 4,208 18 but fewer than 24 3, 3, 168 480 064 563 2,641 2, 719 797 2,875 2,953 3,031 3,109 3,187 3,265 the basic compensation for the postmaster at the office. 12 but fewer than 18 2, 407 2, 485 956 2, 011 2,066 2,121 2,176 2,231 2,286 341 1, 893 1, 736 1, 791 846 901 6 but fewer than 12. 1, 398, 1, 443 1, 488 1,533 1, 578 1, 623 1,668 1,713 1,758 1,803 1,848 § 3544. Compensation of postmasters at fourth-class offices Fewer than 6 (a) The Postmaster General shall- (1) rank each position of postmaster at a post office of the fourth [(b) for changes in revenue units at the start restored to pay The basic salary of postmasters in fourth-class post of the offices first shall class in salary level 6 of the Postal Field Service Schedule; and (2) establish, and adjust from time to time, the annual rate of be readjusted after January 1 of each year. When a post office a is lower revenue a basic compensation, for each such position of postmaster so ranked, period unit category held by it prior to relegation to to the in an amount which bears the same ratio to the annual rate of basic revenue unit the postmaster's basic salary may be adjusted the higher compensation for full-time service in a position (other than post- category, salary step held by him when the post office was a in postmaster's master at a post office of the fourth class) in the same step of salary highest unit category. In all other cases, in adjusting fixed at the level 6 of such schedule, as the total number of hours of service revenue under this section, the basic salary shall be the post- which the Postmaster General determines necessary to be performed basic salary which is higher than the basic salary received by is no such by such postmaster to operate the post office, in the light of the postal lowest step the end of the preceding calendar year. If there the adjusted needs of the patrons of the office, bears to the total number of hours master the at basic salary shall be fixed at the highest step for because of of such full-time service. step units of the office. Each increase in basic salary of step Actions and determinations by the Postmaster General under this sub- revenue in revenue units shall be deemed the equivalent a for section shall be final and conclusive until changed by him. change under section 3552 of this title and the waiting the period, date of (b) A person who performs the duties of postmaster at a post office of increase purposes of advancement to the next step, shall begin on the fourth class where there is a vacancy, or during the absence of the postmaster on sick or annual leave or leave without pay, shall be compen- adjustment. The basic salaries of postmasters at newly established Whenever offices sated at the rate of basic compensation for step 1 of salary level 6 of the [(c) fourth class shall be fixed at the lowest salary rate. class the Postal Field Service Schedule, determined under subsection (a) of this unusual General may advance such office to the appropriate which of the conditions prevail at any post office of the fourth section. (c) When required by the Postmaster General, a postmaster at a Postmaster based on his estimate of the number of revenue units fourth- fourth-class office shall, and any other postmaster in PFS level 6 when category will have during the succeeding twelve months. Any to this permitted by the Postmaster General may, furnish quarters, fixtures, and the office office advanced to the appropriate category pursuant of the first equipment for an office on an allowance basis. The allowance for this class shall not be reduced in category until the start calendar purpose shall be an amount equal to 15 per centum of the basic compen- subsection period after January 1 of the calendar year following be the assigned to sation for step 1 of salary level 6 of the Postal Field Service Schedule. year the category indicated by the revenue units for the preceding pay in which it was so advanced, at which time it shall fiscal § 3560. Salary protection. year. Persons who perform the duties of postmaster the at post absence offices of (a) As used in this section, the term "salary standing" means- (1) basic salary and salary level, with respect to the Postal [(d) fourth class where there is a vacancy or during shall be Field Service Schedule, the paid postmaster the same basic on salary to which they would have been of the sick or annual leave, or leave without pay, entitled if (2) salary for the particular route (including additional com- pensation for forty hours and under for serving heavily patronized regularly appointed as postmaster. The Postmaster General may allow to postmasters services in fourth- and routes), with respect to the Rural Carrier Schedule, and (3) [revenue unit category, with respect to the Fourth-Class class for unusual post conditions during a portion of the year, in [(e) offices additional compensation for separating lieu of an allow- Office Schedule] minimum hours of service with respect to post- masters in fourth-class post offices. ance clerical services for this purpose. for At seasonal post offices of the fourth class, the Postmaster (b) Subject to the provisions of subsection (c) of this section, each [(f) authorize the payment of the basic salary prorated fiscal over employee- (1) who at any time on or after July 1, 1961, is or was reduced General the may periods the office is open for business during the the third class year. for in salary standing; each [(g) of two consecutive fiscal years are less than 36, or pay Where the revenue units of a post office of where in any POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 123 122 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 (f) For the purposes of this section, the term "curtailment of work" standing, holds or held a career appointment or a probational (2) who, on the effective date of such reduction in salary does not include- (1) [reductions in class or revenue unit category of any post appointment whose reduction in the postal in salary field service; standing is not or was not his caused office, or reductions in class or revenue units of any post office or in the minimum hours of service for a fourth-class post office, or (3) demotion for personal cause, is not or was not at own (2) reductions in route mileage for rural carriers. by request, a is not or was not a condition of his temporary promotion is not temporary assignment to a higher salary standing, and is not or or not a condition of his temporary appointment, funds § 3573. Compensatory time, overtime, and holidays. was or was not effected in a reduction in force due to lack of (a) In emergencies or if the needs of the service require, the Post- master General may require employees to perform overtime work or to or curtailment of work; who, for two continuous years immediately prior to service such work on holidays. Overtime work is any work officially ordered or reduction (4) in salary standing, served in the postal field to approved which is performed by- with any salary standing higher than the salary standing (1) an annual rate regular employee in excess of his regular work schedule. which he is reduced; and (5) whose performance of work at all times during such period (2) an hourly rate regular employee in excess of eight hours in a shall be entitled, years as of the effective date of such reduction in salary of two is or was satisfactory; day or forty hours in a week, and (3) a substitute employee in excess of forty hours in a week. standing or as of the first day of the first pay period which begins unless on or The Postmaster General shall determine the day and week used in the date of enactment of this section, whichever is later, computing overtime work. after until he is entitled to receive basic salary at a higher rate by reason of (b) For each hour of overtime work the Postmaster General shall or of the operation of this section, or until the expiration of a reduction period compensate an employee in the "PFS" Schedule as follows: two immediately following the effective date of such of such first (1) He shall pay each employee in or below salary level [PFS- in years standing or immediately following the first day which he 10] PFS-11 compensation at the rate of 150 per centum of the pay entitled as immediately prior to such reduction in salary salary period, applicable, to receive the rate of basic salary to standing hourly rate of basic compensation for his level and step computed by dividing the scheduled annual rate of basic compensation by was (including each increase provided by law in such rate of basic break salary) in two thousand and eighty. SO service long of one workday or more and is not demoted or reassigned due to as he continues in the postal field service without any for (2) He shall grant each employee in or above salary level [PFS- 11] PFS-12 compensatory time equal to the overtime worked, or personal cause, at his own request, or in a reduction in force in his discretion in lieu thereof pay such employee compensation lack of funds or curtailment of work. at the rate of 150 per centum of the hourly rate of basic compensa- The rate of basic salary to which such employee is entitled in salary under tion of the employee or of the hourly rate of the basic compensa- subsection (c) (b) of this section with respect to each reduction of the tion for the highest step of salary level [PFS-10] PFS-11, standing to which this section applies shall be the lesser whichever is the lesser. (c) For officially ordered or approved time worked on a day referred following: the amount of the existing rate of basic salary of the to as a holiday in the Act of December 26, 1941 (55 Stat. 862; 5 U.S.C. employee (A) immediately prior to the reduction in salary standing 87b), or on a day designated by Executive order as a holiday for Fed- (including each increase provided by law in such rate) or eral employees, under regulations prescribed by the Postmaster Gen- (including each increase provided by law in such rate) to (B) the amount of the rate of the salary level or salary which range eral, an employee in the PFS schedule shall receive extra compensa- tion, in addition to any other compensation provided for by law, as the employee is reduced, increased by 25 per centum; or follows: (C) the amount of the rate in the lowest salary standing which (1) Each regular employee in or below salary level [PFS-10] such employee held during the two years immediately preceding in- PFS-11 shall be paid extra compensation at the rate of 100 such reduction in salary standing augmented by each step per centum of the hourly rate of basic compensation for his crease which he would have earned in such salary standing and by level and step computed by dividing the scheduled annual rate of each increase provided by law in such salary rate. basic compensation by two thousand and eighty. (d) The Postmaster General is authorized to issue regulations to (2) Each regular employee in or above salary level [PFS-11] PFS-12 shall be granted compensatory time in an amount equal carry (1) out For the the purposes purposes of this of section section. 3559(a), the existing basic received salary to the time worked on such holiday within thirty working days shall (e) be the basic salary which the employee would have thereafter or, in the discretion of the Postmaster General, in lieu thereof shall be paid extra compensation for the time SO except For for the the provisions purposes of of this section section. 3544(h), the basic compensation would worked at the rate of 100 per centum of the hourly rate of basic earned (2) shall be the basic compensation which the employee compensation for his level and step computed by dividing the have received except for the provisions of this section. scheduled annual rate of basic compensation by two thousand and eighty. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 125 124 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 CHAPTER 51-NONMAILABLE MATTER (3) For work performed on Christmas Day (A) each regular Sec. employee shall be paid extra compensation at the rate of level 150 4001. Nonmailable matter. 4002. Nonmailable fourth class matter. centum of the hourly rate of basic compensation for his of 4003. Mail bearing a fictitious name or address. per and step, computed by dividing the scheduled annual rate 4004. Delivery of mail to persons not residents of the place of address. basic compensation by two thousand and eighty, and (B) each 4005. Fraudulent and lottery matter. substitute employee shall be paid extra compensation at the 4006. "Unlawful" matter. rate of 50 per centum of the hourly rate of basic compensation 4007. Detention of mail for temporary periods. 4008. Communist political propaganda. for his level and step. 4009. Prohibition of pandering advertisements in the mails. (d) The Postmaster General shall establish conditions for the use for § 4001. Nonmailable matter. of compensatory time earned and the payment of compensation (a) Matter, the deposit of which in the mails is punishable under unused compensatory time. (e) Each regular employee whose regular work schedule includes sections 1302, 1341, 1342, 1461, 1463, 1714, 1715, 1716, 1717, or 1718 eight-hour period of service any part of which is within the period of title 18, is nonmailable. an commencing at midnight Saturday and ending at midnight Sunday his (b) Except as provided in section 4002 of this title, nonmailable shall be paid extra compensation at the rate of 25 per centum of matter which reaches the office of delivery, or which may be seized hourly rate of basic compensation for each hour of work performed or detained for violation of law, shall be disposed of as the Postmaster General directs. during that eight-hour period of service. (f) If an employee is entitled under this section to unused compen- (c) Matter otherwise legally acceptable in the mails which— satory time at the time of his death, the Postmaster General shall pay (1) is in the form of, and reasonably could be interpreted or at the rate prescribed in this section, but not less than a sum equal to construed as, a bill, invoice, or statement of account due; but the employee's hourly basic compensation, for each hour of such (2) constitutes, in fact, a solicitation for the order by the addressee unused compensatory time to the person or persons surviving at the of goods or services, or both, date of such employee's death. Such payment shall be made in the is nonmailable matter, shall not be carried or delivered by mail, and shall order of precedence prescribed in the first section of the Act of August be disposed of as the Postmaster General directs, unless such matter bears 3, 1950 (5 U.S.C. 61f), and shall be a bar to recovery by any other on its face, in conspicuous and legible type in contrast by typography, layout, or color with other printing on its face, in accordance with regula- persons of amounts SO paid. (g) Notwithstanding any provision of this section other than sub- tions which the Postmaster General shall prescribe- section (f), no employee shall be paid overtime or extra compensation (A) the following notice: "This is a solicitation for the order of for a pay period which when added to his basic compensation for the goods and/or services and not a bill, invoice, or statement of account pay pensation for the highest step of salary level [PFS-17] PFS-18. period exceeds one twenty-sixth of the annual rate of basic com- due. You are not under obligation to make any payments on account of this offer unless you accept this offer."; or (h) For the purposes of this section and section 3571 of this title— (B) in lieu thereof, a notice to the same effect in words which the whom the Postmaster General has established a regular work (1) "Annual rate regular employee" means an employee for Postmaster General may prescribe. schedule consisting of five eight-hour days in accordance with § 4009. Prohibition of pandering advertisements in the mails section 3571 of this title. whom the Postmaster General has established a regular work (2) "Hourly rate regular employee" means an employee for (a) Whoever for himself, or by his agents or assigns, mails or causes to be mailed any pandering advertisement which offers for sale matter which the advertisement represents as erotically arousing or sexually schedule consisting of not more than forty hours a week. (3) "Substitute employee" means an employee for whom the provocative shall be subject to an order of the Postmaster General to Postmaster General has not established a regular work schedule. refrain from further mailings of such pandering advertisements to desig- nated addressees thereof. * * (b) Upon receipt of notice from an addressee that he has received mail matter, determined by the Postmaster General to be of the character of a § 3575. Exemptions. (a) Sections 3571, 3573 and 3574 of this title do not apply to pandering advertisement, the Postmaster General shall issue an order, if requested by the addressee, to the sender thereof, directing the sender and postmasters, rural carriers, postal inspectors, and employees in salary his agents or assigns to refrain from further mailings of such matter to level [PFS-15] PFS-16 and above. the named addressees. (b) Sections 3571 and 3573 of this title do not apply to employees (c) The order of the Postmaster General shall expressly prohibit the referred to in section 3581 of this title. (c) Sections 3571(a), (b), and (d), and 3573(e) of this title do not sender and his agents or assigns from making any further mailings of pandering advertisements to the designated addressees, effective on the apply to substitute employees. (d) Section 3571(b) of this title does not apply to hourly rate regular employees. 126 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 127 thirtieth calendar day after receipt of the order. The order of the Post- CHAPTER 57.-PENALTY AND FRANKED MAIL master General shall also direct the sender and his agents or assigns to Sec. delete immediately the names of the designated addressees from all mailing 4151. Definitions. 4152. Penalty mail. lists owned or controlled by the sender or his agents or assigns and, further, 4153. Endorsements on penalty covers. shall prohibit the sender and his agents or assigns from the sale, rental, 4154. Restrictions on use of penalty mail. exchange, or other transaction involving mailing lists bearing the names 4155. Accounting for penalty covers. 4156. Reimbursement for penalty mail service. of the designated addressees. 4158. Limit of weight of penalty mail; postage on overweight matter. acting on his behalf has violated or is violating the order given under (d) Whenever the Postmaster General believes that the sender or anyone this 4159. Shipment by most economical means. 4160. Executive departments to supply information. section, he shall serve upon the sender, by registered or certified mail, a 4161. Official correspondence of Vice President and Members of Congress. 4162. Public documents. complaint stating the reasons for his belief and request that any response 4163. Congressional Record under frank of Members of Congress. thereto be filed in writing with the Postmaster General within fifteen days 4164. Seeds and reports from Department of Agriculture. after the date of such service. If the Postmaster General, after appropriate 4165. Mailing privilege of former Presidents. hearing is requested by the sender, and without a hearing if such a hearing 4166. Lending or permitting use of frank unlawful. is not requested, thereafter determines that the order given has been make or is 4167. Reimbursement for franked mailings. 4168. Correspondence of members of diplomatic corps and consuls of countries of being violated, he is authorized to request the Attorney General to Postal Union of Americas and Spain. to a district court of the United States for an order directing compliance application, and the Attorney General is authorized to make application, 4169. Mailing privilege of members of United States Armed Forces and of friendly foreign nations. 4170. Mailing privilege of members of United States Armed Forces and of friendly with such notice. foreign nations in the Canal Zone. which mail matter shall have been sent or received in violation of (e) Any district court of the United States within the jurisdiction the of * * order provided any for by this section shall have jurisdiction, upon applica- § 4169. Mailing privilege of members of United States Armed tion by the Attorney General, to issue an order commanding compliance the Forces and of friendly foreign nations. with such notice. Failure to observe such order may be punished by (a) First-class letter mail, including postal cards and post cards, court as contempt thereof. and sound-recorded communications having the character of personal of the order provided for by this section shall create a rebuttable presumption (f) Receipt of mail matter thirty days or more after the effective date correspondence shall be carried, at no cost to the sender, in the manner provided by section 4303(d)(5) of this title, when mailed by- that such mail was sent after such effective date. (1) a member of the Armed Forces of the United States on (g) Upon request of any addressee, the order of the Postmaster attained General active duty as defined in sections 101 (4) and (22) of title 10, shall include the names of any of his minor children who have not United States Code, and addressed to a place within the de- their nineteenth birthday, and who reside with the addressee. livery limits of a United States post office, if- tive procedure) and chapter 7 (relating to judicial review) of part section. of (h) The provisions of subchapter II of chapter 5 (relating to administra- I (A) the letter or sound-recorded communication is mailed by the member at an Armed Forces post office established title 5, United States Code, shall not apply to any provisions of this under section 705(d) of this title [in an overseas area, as (i) For the purposes of this section- designated by the President, where the Armed Forces of (1) mail matter, directed to a specific address covered in the order of the the United States are engaged in action against an enemy Postmaster General, without designation of a specific addressee thereon, of the United States, engaged in military operations in- shall be considered as addressed to the person named in the Postmaster volving armed conflict with a hostile foreign force, or serving with a friendly foreign force in an armed conflict in which General's order; and adopted children, and children who are wards of or in custody of the (2) the term "children" includes natural children, stepchildren, the United States is not a belligerent; or] which is located at a place outside the forty-eight contiguous States of the United addressee or who are living with such addressee in a regular parent-child States; or (B) the member is hospitalized in a facility under the relationship. jurisdiction of the Armed Forces of the United States as a result of disease or injury incurred [as a result of service in an overseas area designated by the President under clause (A); or while on active duty; or (2) a member of an armed force of a friendly foreign nation at an Armed Forces post office and addressed to a place within the delivery limits of a United States post office, or a post office of the nation in whose armed forces the sender is a member, if- (A) the member is accorded free mailing privileges by his own government; POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 129 128 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 the foreign nation extends similar free mailing States privi- CHAPTER 59-FIRST CLASS MAIL Sec. leges serving with, or in, a unit under the control of a (B) to a member of the Armed Forces of the United command 4251. Definition. 4252. [Weight limit.] Size and weight limits. 4253. Postage rates on first class mail. of that foreign nation; the member is serving with, or in, a unit under the of 4254. Business reply mail. operational (C) control of a command of the Armed Forces § 4251. Definition the United States; (a) First class mail consists of mailable (1) postal cards, (2) post (D) the letter or sound-recorded communication is mailed cards, (3) matter wholly or partially in writing or typewriting, except by the member- as provided in sections 4365, 4453, and 4555 of this title, [and (4)] (i) at an Armed Forces post office established under as (4) bills and statements of account, and (5) matter closed against postal section 705(d) of this title [in an overseas area, Forces inspection. designated by the President, where the Armed of the United States are engaged in action against an (b) A postal card is a card supplied by the Department with a postage stamp printed or impressed on it for the transmission of mes- of the United States, engaged in military opera- tions enemy involving armed conflict with a hostile foreign in sages, orders, notices and other communications, either printed or written in pencil or ink. force, or serving with a friendly foreign force not an (c) Post cards are privately printed mailing cards for the trans- beligerent; or which is located at a place outside armed conflict in which the United States is the a mission of messages. They may not be larger than the size fixed by the Convention of the Universal Postal Union in effect and of approxi- forty-eight contiguous States of the United States; or (ii) while hospitalized in a facility under the juris- mately the same form, quality and weight as postal cards. [(d) Drop letters are letters- result of disease or injury incurred [as a result diction of the Armed Forces of the United States as of a [(1) mailed for local delivery at post offices where letter car- services in an overseas area designated by the President rier service is not established; and under clause (D) and] while in the services with, the or [(2) neither collected nor delivered by rural or star route in, a unit under operational control of a command of carriers.] Armed Forces of the United States; and [§ 4252. Weight limit the nation in whose armed forces the sender trans- is a [The maximum weight of first class mail is the same as the maximum member (E) has agreed to assume all international postal limit applicable to fourth class mail.] The Department of Defense shall transfer to the Post Office funds portation charges incurred. § 4252. Size and weight limits Department to the Department of Defense, as a necessary expense the (b) as postal revenue, out of any appropriations or of The maximum size of first-class mail as one hundred inches in length and girth combined and the maximum weight is seventy pounds. available appropriations or funds and of the activities concerned, Postmaster [§ 4253. Postage rates on first class mail the amount of postage due, as determined by the of subsection [(a) Postage on first class mail is computed separately on each letter equivalent General, for matter sent in the mails under authority or piece of mail. The rate of postage on first class mail is five cents for each ounce or fraction of an ounce, except that the rate— (a) of Subsections this section. (a) and (b) of this section shall be administered Postmaster [(1) on drop letters is four cents for each ounce or fraction of under (c) such conditions, and under such regulations, as the an ounce; General and the Secretary of Defense jointly may prescribe. [(2) for each single postal card and each portion of a double § 4170. Mailing privilege of members of United States the Armed Canal postal card, including the cost of manufacture, is four cents; Forces and of friendly foreign nations in [(3) for each post card and the initial portion of each double post card conforming to section 4251(c) of this title is four cents.] For Zone the purposes of sections 4169(a), 4303(d)(5), and the 4560 extent of § 4253. Postage rates on first-class mail this title, provides mail service for members of the United States be Armed (a) each post office in the Canal Zone postal service, to Armed (a) Postage on first-class mail is computed separately on each letter or piece of mail. Except as otherwise provided in this section, the rate of that Forces it and of friendly foreign nations, shall be considered this title. to an postage on first-class mail weighing thirteen ounces or less is 6 cents for Forces office established under section 705(d) of each ounce or fraction of an ounce. (b) Canal Zone, out of any appropriations or funds available The post Department of Defense shall reimburse the postal service to the of (b) First-class mail weighing more than thirteen ounces shall be mailed at the rates of postage established by section 4303 (d) of this title and shall the of Defense, as a necessary expense of the appropriations due, or be entitled to the most expeditious handling and transportation practicable. Department and of the activities concerned, the equivalent amount of service postage of the (c) The rate of postage for each single postal card and for each portion funds equal to the expenses incurred by, the postal matter of a double postal card, including the cost of manufacture, and for each and sums as determined by the Governor of the Canal Zone, under for such Canal sent in Zone, the mails, and in providing air transportation of mail, --- 82-911 0-67-9 sections. 130 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 131 post card and the initial portion of each double post card conforming to First pound Additional section 4251 (c) of this title is 5 cents. Zones over 8 ounces pounds or [(b)] (d) The rate of postage on business reply mail is the with regular an or fraction fraction thereof thereof rate prescribed in [subsection (a) of] this section, together additional charge thereon of [two] 2 cents for each piece weighing than Cents Cents two ounces or less and [five] 5 cents for each piece weighing more 1, 2, and 3 68 48 4 73 50 two ounces. The postage and charge shall be collected on delivery. 5 78 56 6 83 64 * * 7 83 72 * 8 88 80 CHAPTER 61-AIR MAIL AND AIR PARCEL POST Sec. 4301. Definitions. Zones 4302. Treatment of air mail. 4303. Postage rates on air mail. Local, 1, 4 5 6 7 8 4304. Postage on Alaskan air mail. 2,ands 4305. Size and weight limits. § 4301. Definitions Not over 1 lb $0.80 $0.80 $0.80 $0.80 $0.80 $0.80 Over 1 lb. but not over 1½ lbs .98 1.02 1.07 1.14 1.18 1.24 As used in this chapter- Over 1½ lbs. but not over 2 lbs 1.16 1.23 1.34 1.47 1.55 1.68 "domestic air mail" means matter bearing postage at the which rates is Over 2 lbs. but not over 21/2 lbs 1.40 1.48 1.62 1.79 1.91 2.08 of (1) prescribed in sections 4303 and 4304 of this title air Over 21/2 lbs. but not over 3 lbs 1.64 1.73 1.90 2.11 2.27 2.48 Over 3 lbs. but not over 3½ lbs 1.88 1.98 2.18 2.43 2.63 2.88 mailed postage in the United States Postal Service for transportation by Over 3½ lbs. but not over 4 lbs 2.12 2.23 2.46 2.75 2.99 3.28 Over 4 lbs. but not over 4½ lbs 2.36 2.48 2.74 3.07 3.35 3.68 and delivery by the United States Postal Service. Over 4½ lbs. but not over 5 lbs 2.60 2.73 3.02 3.39 3.71 4.08 (2) "air parcel post" means domestic air mail of any class weighing in excess of [eight] 7 ounces. For each pound or fraction of a pound in excess of five pounds in weight, § 4302. Treatment of air mail the additional postage is as follows: other than air parcel post, shall be treated as first class mail. (a) Except with respect to the postage required, domestic air mail, Zones Rate (b) The Postmaster General shall prescribe the conditions under which air parcel post shall be Local and zones 1, 2, and 3 $0.48 Zone 4 .50 (1) forwarded or returned to the sender; Zone 5 .56 (2) charged with forwarding or return postage; and Zone 6 .64 Zone 7 .72 (3) registered, insured, or given C. O. D. service. Zone 8 .80 § 4303. Postage rates on air mail (a) Except as provided in section 4304 of this title and subsection of this section, the rate of postage on domestic air mail weighing ounce [(2) The rate of postage on air mail of the first class weighing in not (b) more than [eight] 7 ounces is [eight] 10 cents for each excess of eight ounces shall be the rate provided by subsection (a) for each ounce not in excess of eight ounces, plus 5 cents for each or fraction thereof. (b) The rate of postage on each postal card and post card sent as ounce or fraction thereof in excess of eight ounces, but in no case less than the rate provided under paragraph (1) for air parcels.] domestic air mail is [six] 8 cents. (c) business reply cards sent as domestic air mail is the regular The rate of postage on letters in business reply envelopes rate and (3) In addition to parcels to which it is otherwise applicable, the eighth zone includes, for purposes of this section only, except as on prescribed in subsection (a) or (b) together with an additional or less charge and provided by paragraph (4) of this subsection, parcels transported between the United States, its territories and possessions or the Com- five cents for each piece weighing more than two ounces. The postage thereon of two cents for each piece weighing two ounces monwealth of Puerto Rico, and the Canal Zone. (4) The rates of postage on air parcel post transported between and charge shall be collected on delivery. (d) (1) The rates of postage on air parcel post are based section on the the United States, its territories and possessions or the Common- described in section 4553, or prescribed pursuant to tables: wealth of Puerto Rico, and the Canal Zone, and Army, Air Force, eight 4558, zones of this title in accordance with the following [table] and Fleet post offices, shall be the applicable zone rates shown in paragraph (1) of this subsection for mail between the place of mail- ing or delivery within the United States, its territories or possessions or the Commonwealth of Puerto Rico, and the Canal Zone, and the city of the postmaster serving the Army, Air Force, or Fleet post office concerned, except that the rate of postage applicable to air 132 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 133 parcel post transported directly between (1) Hawaii, Alaska, or the territories and possessions of the United States in the Pacific area, and (2) an Army, Air Force, or Fleet post office served by the post- Department of Defense, as a necessary expense of the appropriations Department, out of any appropriations or funds available to the (f) The Department of Defense shall reimburse the Post Office master at San Francisco, California, or Seattle, Washington, shall be the rate which would be applicable if the parcel were in fact mailed or funds and of the activities concerned, sums equal to the from or delivered to that city, as the case may be. incurred by the Post Office Department, as determined by the expenses Post- (5) There shall be transported by air, between Armed Forces post offices established under section 705(d) of this title which are located the title which are not located within the fifty States of the United States, Armed Forces post offices established under section 705(d) of this master General, in providing air transportation of mail between outside the forty-eight contiguous States of the United States, or between any such Armed Forces post office and the point of embarka- territories and possessions of the United States in the Pacific tion or debarkation within the fifty States of the United States, the the area, the Commonwealth of Puerto Rico, or the Virgin Islands [or territories and possessions of the United States in the Pacific area, the territories the and possessions of the United States in the Pacific the point of embarkation or debarkation within the fifty States, the Canal Zone], or between any such Armed Forces post office and Commonwealth of Puerto Rico, the Virgin Islands or the Canal Zone, on a space available basis, on scheduled United States air carriers at rates fixed and determined by the Civil Aeronautics Board in accord- Canal Zone]. Commonwealth of Puerto Rico, or the Virgin Islands [or area, the ance with section 406 of the Federal Aviation Act of 1958 (49 U.S.C. 1376), the following categories of mail matter: § 4304. Postage on Alaskan air mail (A) (i) first-class letter mail (including postal cards and post cards), Postmaster General may fix the postage at rates not exceeding 30 cents Notwithstanding the provisions of section 4303 of this title, the (ii) sound-recorded communications having the character of personal correspondence, [and] within per ounce Alaska. or 15 cents per one-half ounce for airmail sent to, from, or (iii) parcels of any class of mail not exceeding five pounds in § 4305. Size and weight limits weight and sixty inches in length and girth combined, and (iv) second-class publications published once each week or more post is 100 inches in length and girth combined and 70 pounds. The maximum size and weight of domestic airmail and air parcel frequently and featuring principally current news of interest to members of the Armed Forces and the general public, which are mailed at or addressed to any such Armed Forces post CHAPTER 63-SECOND CLASS MAIL AND CONTROLLED office; and CIRCULATION PUBLICATIONS [(B) second-class publications published once each week or more Sec. SECOND CLASS MAIL frequently and featuring principally current news of interest to members of the Armed Forces and the general public which are 4351. Definition. mailed at or addressed to any such Armed Forces post office in 4352. Entry as second class mail. 4353. Entry of foreign publications. an overseas area designated by the President under section 4169 4354. Conditions for entry of publications. of this title; and] [(C)] (B) parcels of any class of mail exceeding five pounds 4357. 4356. Fees Conditions for entry of publications of State departments of agriculture. 4355. Conditions for entry of publications of certain organizations. but not exceeding seventy pounds in weight and not exceeding one for entry and registration. hundred inches in length and girth combined, including surface- type official mail, which are mailed at or addressed to any such 4360. [Postage rates beyond county of publication.] Rates of postage; regular. 4359. 4358. [Postage rates within county of publication Rates of postage; preferred. Minimum postage. Armed Forces post office where adequate surface transportation 4361. Rates for proofs of advertisements is not available. 4362. Transient postage rate. Whenever adequate service by scheduled United States air carriers is 4363. Separation by mailer of second class mail. 4364. Information to be furnished by mailer. not available to provide transportation of mail matter by air in 4365. Permissible marks and enclosures. accordance with the foregoing provisions of this paragraph, the 4366. Permissible supplements. transportation of such mail matter may be authorized by aircraft 4367. Marking of advertising matter. other than scheduled United States air carriers. This paragraph shall 4368. Affidavits relating to mailings; second class mail. not affect the operation of section 4169(a) of this title. 4370. Delivery of newspapers by postal transportation service. 4369. Filing of information relating to publications of the second class. (6) Paragraphs (4) and (5) of this subsection shall be administered under such conditions and regulations as the Postmaster General 4421. Definition. CONTROLLED CIRCULATION PUBLICATIONS and the Secretary of Defense severally may prescribe to carry out 4422. Rates. their respective functions under such paragraphs. * (e) Air parcel post of light weight in relation to size is subject to such surcharge as the Postmaster General determines to be warranted by reason of the extra space and care required in handling and transporting it. 134 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 135 § 4358. [Postage rates within county of publication] Rates of post- (e) The postage on classroom publications, mailed in accordance with section 4359(a) of this title, is 60 per centum of the postage computed in age; preferred accordance with section 4359(b) of this title. publications admitted as second-class mail when addressed for delivery follows: (a) Except as provided in subsection (b), the rate of postage on (f) The postage shall be 4.2 cents per pound on the advertising por- within the county in which they are published and entered is as tion of publications (1) which are mailed for delivery in zones 1 and 2 in accordance with section 4359(a) of this title, (2) which are devoted to pro- [[In cents]] moting the science of agriculture, and (3) when the total number of copies of the publications furnished during any twelve-month period to subscribers Mailed after January 6, 1963, Mailed after residing in rural areas consists of at least 70 per centum of the total and prior to December 31, 1964 number of copies distributed by any means for any purpose. January 1, 1965 (g) In lieu of the minimum charge per piece prescribed by section 1 11/4 4359(b) of this title, the minimum charge per piece for publications (other Rate per pound 1/8 1/8 Minimum charge per piece than publications to which subsections (d) and (e) of this section are applicable), when fewer than five thousand copies are mailed outside the [In cents] county of publication, is 0.6 cent per piece when mailed during the calendar year 1968, 0.7 cent per piece when mailed during the calendar Mailed Mailed Mailed during during after year 1969, and 0.8 cent per piece when mailed thereafter. calendar calendar Dec. 31, 1969 (h) The publisher of a classroom publication or of a publication of year 1968 year 1969 a nonprofit organization, before being entitled to the rates for the publica- 1.3 1.4 1.5 tions, shall furnish such proof of qualifications as the Postmaster General Rate per pound .2 .2 .2 prescribes. Minimum charge per piece (i) For the purposes of the application of this section with respect (b) The rate of postage on the following publications admitted as in to each publication having original entry at an independent incorporated second-class mail when mailed for delivery, within the county city, an incorporated city which is situated entirely within a county, which they are published and entered, by letter carrier at the office of or which is situated contiguous to one or more counties in the same State, but which is politically independent of such county or counties, mailing, shall be- (1) publications issued more frequently than weekly, one cent shall be considered to be within and a part of the county with which it is principally contiguous. a copy; (2) publications issued less frequently than weekly- (j) As used in this section- (A) weighing two ounces or less, one cent a copy; (1) "classroom publication" means a religious, educational, or it is entered for delivery by letter carrier at a different post office (c) When copies of a publication are mailed at a post office where (B) weighing more than two ounces, two cents a copy. scientific publication entered as second-class mail and designed specifically for use in classrooms or in religious instruction classes; (2) "a publication of a qualified nonprofit organization" means within the delivery limits of which the headquarters or general business a publication published by and in the interest of one of the following office of the publisher is located the rate of postage is- types of organizations or associations if it is not organized for profit (1) the rate that would be applicable if the copies were mailed and none of its net income inures to the benefit of any private stock- at the latter post office, or holder or individual: Religious, educational, scientific, philanthropic, (2) the pound rates from the office of mailing if those rates agricultural, labor, veterans', fraternal, and associations of rural electric cooperatives, and not to exceed one publication published by (d) The rates of postage on publications mailed in accordance with are higher. the official highway or development agency of a State which meets section 4359(a) of this title, of qualified nonprofit organizations, are as all of the requirements of section 4354 and which contains no advertising; follows: [In cents] (3) "zones" means the eight zones prescribed in section 4553, or During prescribed pursuant to section 4558, of this title. During During During During During calendar calendar year 1973 (k) The rates of postage prescribed by subsections (a) and (b) of this calendar calendar calendar calendar year 1968 year 1969 year 1970 year 1971 year 1972 and there- section shall apply only to mailings within the county in which the after publications have original entry. § 4359. [Postage rates beyond county of publication] Rates of post- Rate per pound: Advertising portion: Zones 1 and 2 2.35 2.9 3.45 4.0 4.55 5.1 age; regular 2.55 3.3 4.05 4.8 5.55 6.3 Zone s 5.25 6.4 7.55 8.7 (a) Except as provided in sections 4358 and 4362 of this title, the 2.95 4.1 Zone 4 3.35 4.9 6.45 8.0 9.55 11.1 Zone 5 6.9 8.6 12.0 rates of postage set out in this section are applicable to copies of 5.2 10.3 Zone 6 3.5 3.5 5.2 6.9 8.6 10.3 12.0 publications entered as second class mail when (1) mailed by the pub- Zone 7 3.5 5.2 6.9 8.6 10.3 12.0 Zone 8 1.9 2.0 2.1 2.1 2.1 2.1 lisher thereof from the post office of publication and entry or other Nonadvertising portion Minimum charge per piece .2 .2 is .2 .2 .2 136 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 137 post office where entry is authorized and (2) when mailed by news [(d) The publisher of a classroom publication or of a publication agents, registered as such under regulations prescribed by the Post- of a nonprofit organization before being entitled to the rates for the master General, to actual subscribers thereto or to other news agents publications shall furnish such proof of qualifications as the Postmaster for the purpose of sale and (3) sample copies to the extent of 10 per General prescribes. centum of the weight of copies mailed to subscribers during the [(e) As used in this section the term- calendar year. [(1) "classroom publication" means a religious, educational [(b) (1) Except as provided by paragraphs (2), (3), and (4), the rates of postage on publications mailed in accordance with subsection or scientific publication entered as second class mail and designed specifically for use in classrooms or in religious instruction classes; (a) are as follows: [(2) "a publication of a qualified nonprofit organization" [In cents] means a publication published by and in the interest of one of the following types of organizations or associations if it is not orga- Mailed after nized for profit and none of its net income inures to the benefit January 6, Mailed Mailed after 1963, and during December of any private stockholder or individual: Religious, educational, prior to calendar 31, 1964 January 1, year 1964 scientific, philanthropic, agricultural, labor, veterans', fraternal, 1964 and associations of rural electric cooperatives, and not to exceed one publication published by the official highway or development Rates per pound: Advertising portion: agency of a State which meets all of the requirements of section Zones 1 and 2 3.4 3.8 4.2 4354 and which contains no advertising; and Zone 3. 4.4 4.8 5.2 Zone 4. 6.4 6.8 7.2 [(3) "zones" means the eight zones described in section 4553, Zone 5. 8.4 8.8 9.2 Zone 6. 10. 4 10.8 11.2 or prescribed pursuant to section 4558, of this title.] Zone 7 12. 0 12. 0 12.0 (b) Except as otherwise provided in this section and section 4358 of Zone 8 14.0 14.0 14.0 Nonadvertising portion 2.6 2.7 2.8 this title, the rates of postage on publications mailed in accordance with Minimum charge per piece .6 .8 1.0 subsection (a) are as follows: [In cents] [(2) The postage on classroom publications is 60 per centum of the Mailed dur- Mailed dur- Mailed on ing calendar ing calendar and after postage computed in accordance with paragraph (1). year 1968 year 1969 Jan. 1, 1970 [(3) The rates of postage on publications of a qualified nonprofit Rate per pound: organization mailed in accordance with subsection (a) are as follows: Advertising portion: Zones 1 and 2 Zone s 4.5 4.8 5.1 [In cents] Zone 4 5.6 5.9 6.3 Zone 5 7.7 8.2 8.7 7one 6 9.9 10.5 11.1 Mailed after Mailed Mailed after Zone 7 12.0 12.8 13.6 January 6, 1963, during December 31, Zone 8 12.8 13.7 14.5 and prior to calendar 1964 Nonadvertising portion 15.0 16.0 17.0 January 1, 1964 year 1964 Minimum charge per piece 3.0 3.8 3.4 1.1 1.2 1.3 Rate per pound 1.6 1.7 1.8 Minimum charge per piece .125 .125 .125 (c) For the purpose of this section and section 4358 of this title, the portion of a publication devoted to advertisements shall include all [(4) In lieu of the minimum charge per piece prescribed by para- advertisements inserted in the publication and attached permanently graph (1), the minimum charge per piece to be paid by the following section 4656 of this title. thereto, except such advertisements as are subject to the provisions of publications (other than publications to which paragraph (2) or para- graph (3) is applicable) shall be as follows- (d) (1) Publications mailed in accordance with subsection (a), upon request by the publisher or news agent, may be transported by arr on a [(A) publications mailing fewer than 5,000 copies per issue outside the county of publication-one-half cent per piece. space-available basis, on scheduled United States air carriers at rates fixed and determined by the Civil Aeronautics Board in accordance with section [(B) any issue of a publication the advertising portion of which 406 of the Federal Aviation Act of 1958 (49 U.S.C. 1376). The Post- does not exceed 5 per centum of the entire issue-.55 of a cent per master General may authorize the transportation of publications by air piece when mailed after January 6, 1963, and prior to January pursuant to this subsection only when such transportation does not im- 1, 1964, .65 of a cent per piece when mailed during calendar year pede the transportation of airmail, air parcel post, or first-class mail. 1964, and .75 of a cent per piece when mailed after December 31, (2) The Postmaster General shall prescribe from time to time charges 1964. [(c) For the purpose of this section, the portion of a publication charges— to be collected for matter transported by air pursuant to this section. The devoted to advertisements shall include all advertisements inserted in the publication and attached permanently thereto. postagè; (A) shall be in addition to the payment of lawfully required POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 139 138 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 (b) Publishers and news agents may enclose in their publications (B) may not be adjusted more frequently than once every two bills, receipts and orders for subscriptions. years; and (c) This section does not prohibit the insertion in periodicals of ticable, the amount by which the allocated cost incurred by the the (C) when prescribed or adjusted, shall equal, as nearly as prac- De- advertisements permanently attached thereto. (d) In addition to other matter authorized by this section to be con- partment for the delivery of such matter by air is in excess of tained, enclosed, or inserted in second-class mail, there may be included, allocated cost which would have been incurred by the Department in accordance with uniform regulations which the Postmaster General had such matter been delivered by surface transportation. shall prescribe, on the envelopes, wrappers, and other covers in which prescribed in section 4553, or prescribed pursuant to section 4558, of (e) As used in this section the term "zones" means the eight zones copies of publications are mailed, messages and notices of a civic or public-service nature, if no charge is made for the inclusion of such this title. messages and notices on such envelopes, wrappers, and covers. § 4362. Transient postage rate § 4369. Filing of information relating to publications of the second The rate of postage on copies of publications having second class class entry mailed- (a) Each owner of a publication having second-class mail privileges (1) by persons other than the publishers or registered news under section 4354 of this title shall furnish to the Postmaster General at least once a year, and shall publish in such publication once a year, agents; (2) as sample copies by the publishers in excess of the 10 per information in such form and detail and at such time as he may require centum permitted to be mailed at the pound rates; and respecting— be included in the required legitimate list of subscribers; (3) copies mailed by the publishers to persons who may not (1) the identity of the editor, managing editor, publishers, and owners; is [four] 5 cents for the first two ounces and one cent for each addi- (2) the identity of the corporation and stockholders thereof, tional ounce or fraction thereof. When postage at the rates prescribed if the publication is owned by a corporation; for fourth class mail is lower, the latter applies. The rates are com- (3) the identity of known bondholders, mortgagees, and other puted on each individually addressed copy or package of unaddressed security holders; (4) the extent and nature of the circulation of the publication, copies. § 4363. Separation by mailer of second class mail including, but not limited to, the number of copies distributed, [The Postmaster General may require publishers and news agents the methods of distribution, and the extent to which such circula- to separate and make up to zones, in such manner as he directs, tion is paid in whole or in part [: Provided, however, That trade publications serving the performing arts need only to furnish second class mail offered for mailing. Publishers and news agents shall mail second-class matter in the manner such information to the Postmaster General]; and (5) such other information as he may deem necessary to de- directed by the Postmaster General. termine whether the publication meets the standards for second- * class mail privileges. * The Postmaster General shall not require the names of persons own- § 4365. Permissible marks and enclosures (a) Second class mail may contain no writing, print, or sign thereon ing less than 1 per centum of the total amount of stocks, bonds, mortgages, or other securities. or therein, in addition to the original print except— sent and directions for transmission, delivery, forwarding or (1) the name and address of the person to whom the mail is * * CONTROLLED CIRCULATION PUBLICATIONS return; (2) index figures of subscription book either printed or written; § 4421. Definition (3) the printed title of the publication and the place of its Controlled circulation publications are those publications which- (1) contain twenty-four pages or more; publication; (4) the printed or written name and address without addition (2) are issued at regular intervals of four or more times a of advertisement of the publisher or sender, or both; year; date on which the subscription to the matter will end; (5) written or printed words or figures, or both, indicating the (3) devote 25 per centum or more of their pages to text or reading matter and not more than 75 per centum to advertising (6) the correction of typographical errors; matter; (7) a mark except written or printed words to designate a word (4) may be circulated free or mainly free; and or to which it is desired to call attention; (5) are not owned and controlled by one or several individ- (8) passage the words "sample copy" when the matter is sent as such; uals or business concerns and conducted as an auxiliary to and essentially for the advancement of the main business or calling and (9) the words "marked copy" when the matter contains a of those who own or control them. marked item or article. 140 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 141 § 4422. Rates of postage § 4452. Postage rates [The postage rate on controlled circulation publications found by the Postmaster General to meet the definition contained in section 4421 of this title when mailed in the manner prescribed by the Post- of subject this to the minimum charge per piece provided in subsection and (b) [(a) Except as provided in subsection (c) of this section, master General, is 12½ cents a pound or fraction thereof when mailed section, the postage rates on third-class mail are as follows: after January 6, 1963, and prior to January 1, 1964, 13 cents a pound or fraction thereof when mailed during calendar year 1964, and 13½ Type of mailing Rate cents a pound or fraction thereof when mailed after December 31, Unit 1964, regardless of the weight of the individual copies, with a mini- Cents mum charge of 1 cent for each piece. The rates provided in this sec- (1) Individual piece (2) Bulk mailings under subsec. (e) of this sec- { 4 2 First 2 ounces or fraction thereof. tion shall remain in effect until otherwise provided by the Congress.] tion of: Each additional ounce or fraction thereof. The rates of postage on controlled circulation publications found by (A) Books and catalogs of 24 pages or 12 the Postmaster General to meet the definition contained in section 4421 more, seeds, cuttings, bulbs, roots, Each pound or fraction thereof. scions and plants. (B) Other matter of this title when mailed in the manner prescribed by the Postmaster 18 Do. General are as follows: [In cents] Mailed dur- Mailed dur- Mailed on ing calendar ing calendar and after subject to a minimum charge for each piece of 2% cents when mailed is [(b) Matter mailed in bulk under subsection (e) of this section year 1968 year 1969 Jan. 1, 1970 after mailed during calendar year 1964, and 2½ cents when mailed cents when subsequent to January 6, 1963 and prior to January 1, 1964, 2% Rate per pound 14.0 14.5 15.0 Minimum charge per piece 1.9 2.9 3.8 cents. on matter mailed by qualified nonprofit organizations per is piece 1½ such December 31, 1964, except that the minimum charge CHAPTER 65-THIRD CLASS MAIL Sec. third-class (a) Except mail as are otherwise as follows: provided in this section, the postage rates of 4451. Definition. 4452. Postage rates. 4453. Permissible marks and enclosures. Rates Type of mailing § 4451. Definition Mailed Mailed on Unit prior to (a) Third class mail consists of mailable matter which is- and after Jan. 7, 1968 Jan. 7, 1968 (1) not mailed or required to be mailed as first class mail; (2) not entered as second class mail; and (1) Individual piece Cents Cents 6 6.0 (3) less than sixteen ounces in weight. 2 2.0 First 2 ounces or fraction thereof. [(b) A person who presents for mailing at one time twenty or more (2) Bulk mailings under subsection (e) of Each thereof. additional ounce or fraction this section of- identical copies of bills and statements of account produced by any (A) Books and catalogs of 24 pages or photographic or mechanical process, other than typewriting, may mail more, seeds, cuttings, bulbs, (B) Other matter roots, scions and plants them as third class mail. In other cases, bills and statements of account 12 16.0 18 22.0 Each Do. pound or fraction thereof. shall be mailed as first class mail.] (C) Minimum charge of- (i) Regular (c) Circulars, including printed letters which according to internal (ii) Qualified nonprofit or- 27/3 3.8 Per piece. ganizations evidence are being sent in identical terms to several persons, are third 1.25 1.9 Do. class mail. A circular does not lose its character as such when the date and name of the addressee and of the sender are written therein, nor (b) Matter mailed in bulk under subsection (e) of this section is by the correction in writing of mere typographical errors. [(d) Unsealed letters written in point print or raised characters, or each subject to a minimum charge for each piece. The minimum charge for on sound reproduction records, used by the blind are third class mail section, as applicable, except that the minimum charge is 1.3 cents piece on such matter is the minimum charge prescribed by this without regard to the limit on weight prescribed in subsection (a) (3) of this section. (e) Printed matter within the limit of weight set forth in subsection nonprofit organizations (1) which are organized for charitable, religious, piece on such matter mailed on and after January 7, 1968, by qualified per (a) of this section is third class mail. For the purpose of this sub- or general health purposes, and are engaged predominantly in the section, printed matter is paper on which words, letters, characters, complishment of of such purposes, or (2) when such matter consists wholly ac- figures or images, or any combination thereof, not having the char- health solicitations of funds to be used for charitable, religious, or general purposes. acter of actual and personal correspondence, have been reproduced by any process other than handwriting or typewriting. 142 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 143 The pound rates on matter mailed in bulk under subsection of the case where such rate is lower than the rate prescribed in this subsec- (e) (c) by qualified nonprofit organizations are 50 per centum tion on- [(1) complete books consisting wholly of reading matter or pound The rates term provided "qualified by subsection nonprofit (a). organization" as used in this scholarly bibliography or reading matter with incidental blank section cultural, labor, veterans, or fraternal organizations or which inures (d) means religious, educational, scientific, philanthropic, associations agri- spaces for notations and containing no advertising matter other than incidental announcements of books except additions, sup- organized for profit and none of the net income of being plements, fillers, or similar matter which are mailed thereafter not the benefit of any private stockholder or individual. Before and which are intended to replace or add to material in the com- to entitled to the preferential rates set out in this section, the organiza- to the plete book originally mailed;] tion or association shall furnish proof of its qualifications (1) books, including books issued to supplement other books, con- sisting wholly of reading matter or reading matter with incidental Postmaster General. (e) may mail in the manner directed by the mail, in Upon payment of a fee of $30 for each calendar year Postmaster or portion blank spaces for notations containing no advertising matter other than incidental announcement of books; thereof, any separately person addressed, identical pieces of third class hundred [(2) 16-millimeter films and 16-millimeter film catalogs except General, of not less than fifty pounds or of not less than two entire bulk when sent to commercial theaters;] quantities pieces subject to pound rates of postage applicable to the (2) 16-millimeter or narrower width films, and catalogs of such films, except when sent to commercial theaters; mailed at one time. (3) printed music, whether in bound form or in sheet form; § 4453. Permissible marks and enclosures (4) printed objective test materials and accessories thereto mail, pursuant to section 4555 of this title, may be placed on or en- Only marks and enclosures permissible in the case of fourth class used by or in behalf of educational institutions in the testing of ability, aptitude, achievement, interests, and other mental and closed in third class mail. personal qualities with or without answer, test scores, or iden- tifying information recorded thereon in writing, or by mark; CHAPTER 67-FOURTH CLASS MAIL (5) sound recordings, including incidental announcements of Sec. recordings and guides or scripts prepared solely for use with 4551. Definition. such recordings; 4552. Size and weight limitations. (6) manuscripts for books, periodicals and music; 4553. 4554. Postal [Postage zones. rates on books and films.] Books, films, and other materials; (7) Printed educational reference charts, permanently proc- preferred rates. essed for preservation; and 4555. Permissible marks and enclosures. (8) looseleaf pages, and binders therefor, consisting of med- 4556. Postage rates on parcel post. ical information for distribution to doctors, hospitals, medical 4557. Postage rates on catalogs. Reformation of conditions of mailability. schools, and medical students. 4558. 4559. 4560. Certification Air transportation on fourth-class of parcels mail mailed revenue-cost at or addressed relationship. to Armed Forces post (b) (1) Matter designated in paragraph (2) of this subsection may be mailed at the regular third or fourth class postage rates or at the offices. rate of [4 cents for the first pound or fraction thereof and 1 cent for § 4551. Definition each additional pound or fraction thereof] 8 cents for the first two pounds Fourth class mail consists of mailable matter- or fraction thereof and 3 cents for each additional pound or fraction thereof (1) (2) within the size and weight limits prescribed for not mailed or required to be mailed as first class fourth mail; when loaned or exchanged (including cooperative processing by li- braries) between- class mail; and (A) schools, colleges or universities; (3) not entered as second class mail. (B) public libraries, religious, educational, scientific, philan- * thropic, agricultural, labor, veterans', or fraternal organizations § 4554. * [Postage * rates on books, films, and similar materials; educational or associations, not organized for profit and none of the net in- materials] Books, films, and other pre- come of which inures to the benefit of any private stockholder or individual, or between such organizations and their members, ferred rates readers or borrowers. (a) Except is [9½ cents a pound for the first pound or fraction when mailed as provided in subsection (b) of this section, the thereof post- (2) The materials mailable under the rates prescribed in para- graph (1) of this subsection are- age rate cents for each additional pound or fraction thereof and 10 cents (A) books consisting wholly of reading matter or scholarly and 5 6, 1963 and prior to January 1, 1964, additional. after January first pound fraction thereof and 5 cents for each 1963] bibliography or reading matter with incidental blank spaces for notations and containing no advertising matter other than in- for the fraction or thereof when mailed after December cents 31, for each cidental announcements of books; pound cents or for the first two pounds or fraction thereof and 6 or here- (B) printed music, whether in bound form or in sheet form; additional 16 pound or fraction thereof, except that the rate now in (C) bound volumes of academic theses in typewritten or other after prescribed for third- or fourth-class matter shall apply every duplicated form; 144 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 (D) periodicals, whether bound or unbound; 145 (E) sound recordings; and § 4560. Air Armed transportation of parcels mailed at or addressed to (F) other library materials in printed, duplicated, or photo- Forces post offices graphic form or in the form of unpublished manuscripts. section, the Postmaster General may require an organization or asso- established which under is mailed at or addressed to any Armed Forces girth combined, not exceeding thirty pounds in weight and sixty inches in length parcel and post, Any parcel, other than a parcel mailed airmail or as air (3) Before being entitled to the preferential rates under this sub- ciation to furnish satisfactory evidence to him that none of the net income inures to the benefit of any private stockholder or individual. (c) 16-millimeter or narrower width films, filmstrips, transparencies with section and determined by the Civil Aeronautics Board in carriers at rates a fixed space-available basis, on scheduled United States air by air on section 705(d) of this title shall be transported post office for projection, slides, microfilms, sound recordings, scientific or mathe- matical kits, instruments or other devices and catalogs of those items, and guides or scripts prepared solely for use with such materials may special payment, fee to be in addition to the regular surface rate of 1376), upon 406 of the Federal Aviation Act of 1958 (49 U.S.C. accordance be mailed at the rates prescribed in subsection (b) of this section carriers is Whenever adequate service by scheduled United transporta- tion by air. prescribed by the Postmaster General for such postage, of a when sent to or from the institutions, organizations or associations listed in (A) and (B) of subsection (b)(1). (d) The limit of weight on parcels mailed under this section is 70 scheduled of United such mail States matter air carriers. may be authorized by aircraft other transpor- than tation with the foregoing provisions of this section, the by air in accordance not available to provide transportation of mail matter States air pounds. [(e). The postage rates prescribed in this section shall continue until otherwise provided by the Congress.] (e) Articles may be mailed under this section in quantities of one CHAPTER 69-POSTAGE RATES FOR MISCELLANEOUS thousand or more in a single mailing, as defined by the Postmaster Sec. MATTER WITHIN THE VARIOUS CLASSES General, only in the manner directed by him. 4651. Keys and other small articles. 4652. Congressional Record. * * * * [4653. Publications for the blind. § 4559. Certification on fourth-class mail revenue-cost relationship. 4653. [4654. Matter Reproducers and sound reproduction records for the blind.] The Postmaster General shall not withdraw from the general fund 4655. 4654. Markings. Unsealed letters sent by blind or physically persons. handicapped persons. for blind and other handicapped of the Treasury any funds appropriated to the Department for any fiscal year, until he has certified in writing to the Secretary of the 4656. Enclosures mailed with second-class publications. Treasury that- § 4651. Keys and other small articles (1) he has reason to believe that the revenues from the rates of postage on fourth-class mail (other than fourth-class mail for identification (a) Any person may mail without prepayment of which the rates are prescribed by sections 4422, 4554, and 4651 nates, or which which the Postmaster General by regulation device, desig- small article card, identification tag, or similar identification postage a key, to 4654, inclusive, of this title) will not be greater than the costs thereof by more than 4 per centum and will not be less than the (1) bears, contains, or has attached securely thereto- costs thereof by more than 4 per centum; or (2) he has filed with the Interstate Commerce Commission cluding any street address or box or route number; and a complete, definite, and legible post office address, in- a request for the establishment or reformation of rates or other (2) a notice directing that it be returned to the conditions of mailability, or both, in accordance with section 4558 guaranteeing thereon. the payment, on delivery, of the postage address, and due of this title, with the objective that the revenues of such fourth- class mail will not be greater than the costs thereof by more than for thereof] each 14 cents for the first two ounces or fraction thereof, ounces and or fraction (b) Postage at the rate of [6 cents for each two 4 per centum, or will not be less than the costs thereof by more than 4 per centum; or delivery. additional two ounces or fraction thereof, shall be collected 7 cents on (3) the volume data published in the most recent Cost Ascer- tainment Report does not reflect increases in the volume of fourth- § 4652. Repealed. Pub. L. 87-793, § 304(a) Oct. 11, 1962, 76 Stat. class mail from changes in law, including changes which have not 840, eff. Jan. 7, 1963. become effective, which in the opinion of the Postmaster General [ § 4653. Publications for blind persons. would have resulted in revenues of fourth-class mail (other than [(a) The following matter may be mailed free of that for which rates are prescribed by sections 4422, 4554 and 4651 to 4654 inclusive, of this title) not greater than the costs thereof pages [(1) thereof: books, pamphlets, and other reading matter, postage- including by more than 4 per centum, or not less than the costs thereof by more than 4 per centum, had such changes in law been in effect for the period covered by such Cost Ascertainment Report. the either form raised characters or in sightsaving-size or printed) or in [(A) in published (whether prepared by hand, of sound recordings, for use of blind type, Certificates required by this subsection shall be based on the volume data published in the most recent Cost Ascertainment Report of the the [(B) Postmaster in packages General; not exceeding the weight persons; prescribed by Department. 82-911 0--67-10 [(C) containing no advertising or other matter whatsoever; 146 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 147 [(B) containing no advertising; [(D) unsealed; [(C) when furnished by an institution, agency, publisher, [(E) sent- [(i) by an institution, agency publisher, organization, organization, or association (including a library or school association (including a library or school and including and including organizations or associations of or for blind or organizations or associations of or for blind people), not people), not conducted for private profit, to a blind person, conducted for private profit, as a loan to blind readers, at a price not greater than the cost price thereof. or when returned by the blind reader to the lender; or [§ 4654. Reproducers, sound recordings, and other materials and [(ii) to a blind person without cost to the blind appliances for the preparation of reading matter for blind persons. person; [(iii) or to an institution, agency, publisher, organiza- and tion, including or organizations or associations of or for association (including a library or school blind [(a) Reproducers, or parts thereof, for sound recordings for blind persons which are the property of the United States Government may people), not conducted for private profit, to be furnished be mailed free of postage when sent for repair, or returned after repair- [(2) magazines, periodicals, and other regularly issued publi- to a blind person without cost to such blind person. [(1) by an organization, institution, public library, or associa- tion for blind persons, not conducted for private profit; cations: [(A) published (whether prepared by hand, or printed) in [(2) by a blind person to such an agency not conducted for private profit; either in raised characters or in sightsaving-size type, or (3) from such an agency to an organization, institution, the form of sound recordings, for use of blind persons; public library, or association for blind persons not conducted [(C) for which no subscription fee is charged. (B) containing no advertising; for privaté profit; or [(b) There may be mailed at the rate of postage of 1 cent for each [(4) to a blind person. [(b) The Postmaster General may extend the free mailing privilege pound or [(1) fraction books, thereof- pamphlets, and other reading matter, including provided by subsection (a) of this section. to reproducers or parts thereof for sound recordings for blind persons, braille writers and other pages thereof: [(A) published (whether prepared by hand, or printed) in appliances for blind persons or parts thereof, that are the property of- either in raised characters or in sightsaving-size type, or (1) State governments or subdivisions thereof; the form of sound recordings, for use of blind persons; [(B) in packages not exceeding the weight prescribed by [(2) public libraries; [(3) private agencies for the blind not conducted for private the Postmaster General; profit; or [(C) containing no advertising or other matter whatso- [(4) blind individuals. ever; [(c) The Postmaster General may also permit the mailing free of [(D) unsealed; postage of paper, records, tapes, and other materials for use by the [(E) sent- [(i) by an institution, agency, publisher, organiza- and recipients for the production (whether by hand or printed) of reading matter either in raised characters or sightsaving-size type, or in the tion, or association (including a library or school blind form of sound recordings, for use of blind persons, where such materials including organizations or associations of or for people), not conducted for private profit, on a rental blind are the property of- [(1) State governments or subdivisions thereof; basis to blind readers, or when returned by the reader to such organization, at a price not greater than [(2) public libraries; (3) private agencies for the blind not conducted for private the cost price thereof; or [(ii) to a blind person at a price not greater than the profit; or [(4) blind individuals.] cost price thereof; or including organizations or associations of or for blind tion, or association (including a library or school [(iii) to an institution, agency, publisher, organiza- and § 4653. Matter for blind and other handicapped persons (a) The matter described in subsection (b) (other than matter mailed under section 4654 of this title) may be mailed free of postage, if- people) not conducted for private profit, to be furnished cost (1) the matter is for the use of the blind or other persons who cannot to a blind person at a price not greater than the use or read conventionally printed material because of a physical [(2) magazines, periodicals, and other regularly issued publi- price thereof. impairment; (2) no charge, or rental, subscription, or other fee, is required for such matter or a charge, or rental, subscription, or other fee is required cations. [(A) published (whether prepared by hand, or printed) in for such matter not in excess of the cost thereof; either in raised characters or in sightsaving-size type, or (3) the matter may be opened by the Postmaster General for the form of sound recordings, for use of blind persons; inspection; POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 149 148 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 handicap significantly the Government's recruitment or retention of (4) (5) the the matter matter contains is mailed no advertising; subject to size and and weight limitations well-qualified individuals in positions paid under- (1) section 5332 of this title; (b) prescribed The free by mailing the Postmaster privilege General. provided by subsection (a) is extended (2) the provisions of part III of title 39 relating to employees in the postal field service; (3) the pay scales for physicians, dentists, and nurses in the to- (1) reading matter and musical scores; Department of Medicine and Surgery, Veterans' Administration, (2) sound reproductions; records, tapes, and other material for the production under chapter 73 of title 38; or (4) sections 867 and 870 of title 22; of (3) paper, matter, musical scores, or sound reproductions; reading reproducers, parts thereof, for sound reproductions; materials and he may establish for the areas or locations higher minimum rates of (4) Braille writers, or typewriters, educational or other designed or basic pay for one or more grades or levels, occupational groups, series, devices, or adapted parts for use of, a blind person or a person this having section. (5) or thereof, used for writing by, or specifically a physical classes, or sub-divisions thereof, and may make corresponding in- creases in all step rates of the pay range for each such grade or level. However, a minimum rate SO established may not exceed the [seventh] impairment as described in subsection (a) (1) of maximum pay rate prescribed by statute for the grade or level. The $ 4654. Unsealed letters sent by blind or physically handicapped President may authorize the exercise of the authority conferred on him by this section by the Civil Service Commission or, in the case of in- persons letters sent by a blind person or a person having a in physical raised dividuals not subject to the provisions of this title governing appoint- impairment, characters or as sightsaving type, or in the form of Unsealed described in section 4653(a)(1) of sound this recordings, title, may ment in the competitive service, by such other agency as he may designate. (b) Within the limitations of subsection (a) of this section, rates of be mailed free of postage. basic pay established under that subsection may be revised from time § 4655. Markings relating blind or other handicapped persons mailed under "Free to time by the President or by such agency as he may designate. The actions and revisions have the force and effect of statute. section 4653, Blind Handicapped", or words to effect address All matter or section to 4654, of this title, shall bear that the words specified (c) An increase in rate of basic pay established under this section is not an equivalent increase in pay within the meaning of section 5335(a) Matter by the Postmaster for the General, or in the upper right-hand corner of the of this title and section 3552 of title 39. [(d) The rate of basic pay, established under this section, and area. § 4656. Enclosures mailed with second-class publications received by an individual immediately before the effective date of a receipts mailed with publications entered as second-class supplements mail, statutory increase in the pay schedules of the pay systems specified in Bills loose or or bound in the publications, and advertising at third, subsection (a) of this section shall be initially adjusted on the effective either with such publications, shall be charged postage been first, mailed other or date of the new pay schedules under conversion regulations prescribed fourth-class mailed rates, as appropriate, had such matter by the President or by such agency as he may designate.] (d) The rate of basic pay established under this section and received than with the publications. by an individual immediately before a statutory increase, which becomes effective prior to, on, or after the date of enactment of the statute, in the CHAPTER 91-DELIVERY SERVICE pay schedule applicable to such individual of any pay system specified in * subsection (a) of this section, shall be initially adjusted, effective on the * effective date of the statutory increase, under conversion rules prescribed * § 6008. Special handling by the President or by such agency as the President may designate. third-class handling and transportation practicable, but air mail. Upon payment mail and fourth-class mail are entitled to such mail is not of a special handling fee, [fourth the class most mail expedi- is § 5314. Positions at level III. tious required to receive the same handling and transportation as Level III of the Executive Schedule applies to the following posi- tions, for which the annual rate of basic pay is [$28,500] $29,500: (1) Deputy Attorney General. (2) Solicitor General of the United States. TITLE 5, UNITED STATES CODE (3) Deputy Postmaster General. (4) Under Secretary of Agriculture. (5) Under Secretary of Commerce. § 5303. Higher minimum rates: Presidential authority. President finds that the pay rates in private locations enter- (6) Repealed. Pub. L. 89-670, § 10(e), Oct. 15, 1966, 80 Stat. 948. prise SO" substantially for one or more above the pay rates of statutory pay as (a) When the occupations in one or more areas or schedules are to (7) Under Secretary of Health, Education, and Welfare. (8) Under Secretary of the Interior. 150 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 151 (9) Under Secretary of Labor. (10) Under Secretary of State for Political Affairs or Under Secretary of State for Economic Affairs. Service. (51) Director of the Federal Mediation and Conciliation (50) Chairman of the National Endowment for the Humanities. (11) Under Secretary of the Treasury. (12) Under Secretary of the Treasury for Monetary Affairs. § 5315. Positions at level IV. (52) Under Secretary of Housing and Urban Development. (13) Administrator of General Services. (14) Administrator of the Small Business Administration. (15) Deputy Administrator of Veterans' Affairs. (16) Deputy Administrator, Agency for International De- for annual rate of basic pay is [$27, 000] $28,750: Level which IV the of the Executive Schedule applies to the following positions, velopment. Department of State. (1) Administrator, Bureau of Security and Consular Affairs, (17) Chairman, Civil Aeronautics Board. (18) Chairman of the United States Civil Service Commission. 948, (2) Repealed. Pub. L. 89-670, § 10(e), Oct. 15, 1966, 80 Stat. (19) Chairman, Federal Communications Commission. (20) Chairman, Board of Directors, Federal Deposit Insurance (3) Deputy Administrator of General Services. Corporation. Space Administration. (4) Associate Administrator of the National Aeronautics and (21) Chairman of the Federal Home Loan Bank Board. (22) Chairman, Federal Power Commission. velopment (6). (5) Assistant Administrators, Agency for International De- (23) Chairman, Federal Trade Commission. (24) Chairman, Interstate Commerce Commission. tional Development (4). (6) Regional Assistant Administrators, Agency for Interna- (25) Chairman, National Labor Relations Board. (7) Under Secretary of the Air Force. (26) Chairman, Securities and Exchange Commission. (27) Chairman, Board of Directors of the Tennessee Valley (8) Under Secretary of the Army. (9) Under Secretary of the Navy. Authority. (28) Chairman, National Mediation Board. (29) Chairman, Railroad Retirement Board. (11) Assistant Secretaries of Agriculture (3). (10) Deputy Under Secretaries of State (2). (30) Chairman, Federal Maritime Commission. (13) Assistant Secretaries of Defense (7). (12) Assistant Secretaries of Commerce (5). (31) Comptroller of the Currency. (32) Commissioner of Internal Revenue. (33) Director of Defense Research and Engineering, Depart- (15) Assistant Secretaries of the Army (3). (14) Assistant Secretaries of the Air Force (3). ment of Defense. (16) Assistant Secretaries of the Navy (3). (34) Deputy Administrator of the National Aeronautics and fare (17) (5). Assistant Secretaries of Health, Education, and Wel- Space Administration. (35) Deputy Director of the Bureau of the Budget. (19) Assistant Attorneys General (9). (18) Assistant Secretaries of the Interior (5). (36) Deputy Director of Central Intelligence. (37) Director of the Office of Emergency Planning. (20) Assistant Secretaries of Labor (4). (38) Director of the Peace Corps. (21) Assistant Postmasters General (6). (39) Chief Medical Director in the Department of Medicine (22) Assistant Secretaries of State (11). and Surgery, Veterans' Administration. (40) Director of the National Science Foundation. (24) Chairman of the United States Tariff Commission. (23) Assistant Secretaries of the Treasury (4). (25) Repealed. Pub. L. 90-83. (41) Repealed. Pub. L. 90-83. (26) Repealed. Pub. L. 90-83. (42) President of the Export-Import Bank of Washington. (27) Repealed. Pub. L. 90-83. (43) Members, Atomic Energy Commission. (28) Repealed. Pub. L. 90-83. (44) Members, Board of Governors of the Federal Reserve System. (30) (29) Repealed. Director of Pub. Civil L. Defense, 90-83. Department of the Army. (45) Director of the Federal Bureau of Investigation, Depart- ment of Justice. Medicine and Surgery, Veterans' Administration. (31) Deputy Chief Medical Director in the Department of (46) Administrator, Federal Highway Administration. (47) Administrator, Federal Railroad Administration. (33) (32) Deputy Deputy Director of the Office of Emergency Planning. (48) Chairman, National Transportation Safety Board. (34) Deputy Director Director of of the the Office Peace of Corps. Science and Technology. (49) Chairman of the National Endowment for the Arts the incumbent of which also serves as Chairman of the National Disarmament (35) Deputy Agency. Director of the United States Arms Control and Council on the Arts. (38) Directors of the Bureau of the Budget (3). (37) (36) Assistant Deputy Director of the United States Information Agency. General Counsel of the Department of Agriculture. POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 153 152 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 (84) Assistant Secretary for Science, Smithsonian Institution. (39) General Counsel of the Department of of Commerce. Defense. (85) Assistant Secretary for History and Art, Smithsonian (40) (41) General General Counsel Counsel of of the the Department Department of Health, Educa- Institution. (86) Deputy Administrator of the Small Business Administra- tion. tion, and Welfare. (42) Solicitor of the Department of Labor. the Interior. (87) Assistant Secretaries of Housing and Urban Development (43) Solicitor General Counsel of the Department of the National of Labor Relations Board. (4). (88) General Counsel of the Department of Housing and (44) General Counsel of the Post Office State. Department. Urban Development. (45) Counselor of the Department of (89) Commissioner of Interama. (46) Legal Adviser of the Department of State. § 5316. Positions at level V. (47) General Counsel of the Department of the Treasury. Bank (48) (49) First Vice President of the Export-Import of Level V of the Executive Schedule applies to the following positions for which the annual rate of basic pay is [$26,000] $28,000: Washington. General Manager of the Atomic Energy Commission. (1) Administrator, Agricultural Marketing Service, Depart- (50) (51) Governor of the Farm Credit Administration. ment of Agriculture. (2) Administrator, Agricultural Research Service, Department (52) (53) Deputy Inspector General, Foreign Board. Assistance. Inspector General, Foreign Assistance. of Agriculture. (3) Administrator, Agricultural Stabilization and Conserva- (54) Members, Civil Aeronautics tion Service, Department of Agriculture. (55) (56) Members, Members, Board Council of of Directors Economic of Advisers. the Export-Import Bank (4) Administrator, Farmers Home Administration. (5) Administrator, Foreign Agricultural Service, Department of Washington. Federal Communications Commission. Federal of Agriculture. (57) (58) Members, Member, Board of Directors of the Deposit (6) Administrator, Rural Electrification Administration, De- partment of Agriculture. Insurance Corporation. (59) Members, Federal Home Loan Bank Board. (7) Administrator, Soil Conservation Service, Department of Agriculture. (60) Members, Federal Power Commission. (8) Administrator, Bonneville Power Administration, Depart- Members, Federal Trade Commission. ment of the Interior. (61) Members, Interstate Commerce Commission. Board. (9) Administrator of the National Capital Transportation (62) Members, National Labor Relations Agency. (63) (64) (65) Members, Members, Securities Board of and Directors Exchange of the Commission. Tennessee Valley (10) Repealed. Pub. L. 89-670, § 10(e), Oct. 15, 1966, 80 Stat. 948. Authority. Members, United States Civil Service Commission. (11) Associate Administrators of the Small Business Adminis- tration (3). (66) Members, Federal Maritime Commission. Board. (12)-(14) Repealed. Pub. L. 89-670, § 10(e), Oct. 15, 1966, (67) (68) Members, National Mediation 80 Stat. 948. (69) Members, Railroad Retirement Board. (15) Associate Administrator for Advanced Research and (70) (71) Director Associate of Director Selective of Service. the Federal Bureau of Investigation, Technology, National Aeronautics and Space Administration. (16) Associate Administrator for Space Science and Applica- Department (72) Chairman, of Justice. Equal Employment Opportunity of State. Commission. tions, National Aeronautics and Space Administration. (17) Associate Administrator for Manned Space Flight, Na- (73) (74) Chief Director, of Protocol, Bureau Department of Intelligence and Research, Depart- tional Aeronautics and Space Administration. (18) Associate Deputy Administrator, National Aeronautics ment of State. and Space Administration. (75) Director, States Community Attorney Relations for the District Service. of Columbia. of (19) Deputy Associate Administrator, National Aeronautics (76) (77) United United States Attorney for the Southern District New and Space Administration. (20) Associate Deputy Administrator of Veterans' Affairs. (21) Archivist of the United States. York. Transportation Safety Bou (22) Repealed-Pub. L. 90-83. (78) General (23) Assistant Secretary of Agriculture for Administration. (79) Deputy (4). (24) Assistant Secretary of Health, Education, and Welfare (80) (81) Assistant Secretaries of Transportation for Administration. (82) (83) Director Administrator of the St. Lawrence Seaway Development of Public Roads. (25) Assistant Secretary of the Interior for Administration. Corporation. 82-911 0-67-11 154 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 155 (26) Assistant Attorney General for Administration. (62) Director of Regulation, Atomic Energy Commission. (27) Assistant Secretary of Labor for Administration. (63) Director of Science and Education, Department of (28) Assistant Secretary of the Treasury for Administration. Agriculture. (29) Assistant General Manager, Atomic Energy Commission. the (64) Deputy Under Secretary for Monetary Affairs, Depart- (30) Assistant and Science Adviser to the Secretary of ment of the Treasury. (65) Deputy Commissioner of Internal Revenue, Department Interior. (31) Chairman, Foreign Claims Settlement Commission of the of the Treasury. (66) Deputy Director, National Science Foundation. United States. (32) Chairman of the Military Liaison Committee to the (67) Deputy Director, Policy and Plans, United States Infor- mation Agency. Atomic Energy Commission, Department of Defense. (68) Deputy General Counsel, Department of Defense. (33) Chairman of the Renegotiation Board. (34) Chairman of the Subversive Activities Control Board. (69) Deputy General Manager, Atomic Energy Commission. (35) Chief Counsel for the Internal Revenue Service, Depart- (70) Associate Director of the Federal Mediation and Concili- ation Service. ment of the Treasury. (36) Chief Forester of the Forest Service, Department of (71) Associate Director for Volunteers, Peace Corps. (72) Associate Director for Program Development and Opera- Agriculture. (37) Chief Postal Inspector, Post Office Department. tions, Peace Corps. (73) Assistants to the Director of the Federal Bureau of In- (38) Repealed. Commissioner Pub. of L. Customs, 90-83. Department of the Treasury. vestigation, Department of Justice (2). (39) (40) Commissioner, Federal Supply Service, General Services (74) Assistant Directors, Office of Emergency Planning (3). (75) Assistant Directors, United States Arms Control and Administration. (41) Commissioner of Education, Department of Health, Disarmament Agency (4). (76) Repealed. Pub. L. 89-670, § 10(e), Oct. 15, 1966, 80 Education, and Welfare. (42) Commissioner of Fish and Wildlife, Department of the Stat. 948. (77) Fiscal Assistant Secretary of the Treasury. Interior. (43) Commissioner of Food and Drugs, Department of Health, (78) General Counsel of the Agency for International Develop- ment. Education, and Welfare. (44) Commissioner of Immigration and Naturalization, De- (79) General Counsel of the Department of the Air Force. (80) General Counsel of the Department of the Army. partment of Justice. (45) Commissioner of Indian Affairs, Department of the (81) General Counsel of the Atomic Energy Commission. (82) Repealed. Pub. L. 89-670, § 10(e), Oct. 15, 1966, 80 Stat. Interior. 948. (46) Repealed. Pub. L. 90-9. (47) Commissioners, Indian Claims Commission (5). (83) Repealed. Pub. L. 90-83. Commissioner of Patents, Department of Commerce. (84) General Counsel of the Department of the Navy. (48) (49) Commissioner, Public Buildings Service, General Services (85) General Counsel of the United States Arms Control and Disarmament Agency. Administration. Commissioner of Reclamation, Department of the Interior. (86) General Counsel of the National Aeronautics and Space (50) (51) Commissioner of Social Security, Department of Health, Administration. (87) Governor of the Canal Zone. Education, and Welfare. (52) Commissioner of Vocational Rehabilitation, Department (88) Manpower Administrator, Department of Labor. (89) Maritime Administrator, Department of Commerce. of (53) Health, Commissioner Education, of and Welfare, Welfare. Department of Health, Educa- (90) Members, Foreign Claims Settlement Commission of the United States. tion, and Welfare. (54) Director, Advanced Research Projects Agency, Depart- (91) Members, Renegotiation Board. (92) Members, Subversive Activities Control Board. ment of Defense. (55) Director of Agricultural Economics, Department of (93) Members, United States Tariff Commission. (94) Repealed. Pub. L. 90-83. Agriculture. (56) Director, Bureau of the Census, Department of Commerce. Interior. (95) Special Assistant to the Secretary (Health and Medical Affairs), Department of Health, Education, and Welfare. (57) Director, Bureau of Mines, Department of the Justice. Director, Bureau of Prisons, Department of (96) Deputy Directory of Defense Research and Engineering, (58) (59) Director, Geological Survey, Department of the Interior. De- Department of Defense (4). (60) Director, Research and Development, Post Office (97) Assistant Administrator of General Services. (98) Director, United States Travel Service, Department of partment. (61) Director, National Bureau of Standards, Department of Commerce. Commerce. 156 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 157 (99) Executive Director of the United States Civil Service GENERAL SCHEDULE Commission. (100) Administrator, Wage and Hour and Public Contracts Annual rates and steps Grade Division, Department of Labor. (101) Assistant Director (Program Planning, Analysis and 1 2 3 4 5 6 7 8 9 10 Research), Office of Economic Opportunity. (102) Assistant General Managers, Åtomic Energy Com- GS-1 $3,609 $3,731 $3,853 $3,975 $4,097 $4,219 $4,341 $4,463 $4,585 $4,707 GS-2 3,925 4,058 4,191 4,324 4,457 4,590 4,723 4,856 4,989 5,122 GS-3 4,269 4,413 4,557 4,701 4,845 4,989 5,133 5,277 4,421 5,565 GS-4 4,776 4,936 5,096 5,256 5,416 5,576 5,736 5,896 6,056 6,216 mission (103) (2). Associate Director (Policy and Plans), United States GS-5 5,531 5,507 5,683 5,859 6,035 6,211 6,387 6,563 6,739 6,916 GS-6 5,867 6,065 6,263 6,461 6,659 6,857 7,055 7,253 7,451 7,649 GS-7 6,451 6,664 6,877 7,090 7,303 7,516 7,729 7,942 8,155 8,368 Information Agency. Chief Benefits Director, Veterans' Administration. of GS-8. 7,068 7,303 7,538 7,773 8,008 8,243 8,478 8,713 8,948 9,183 GS-9 7,696 7,957 8,218 8,479 8,740 9,001 9,262 9,523 9,784 10,045 (104) (105) Commissioner of Labor Statistics, Department Labor. GS-10 8,421 8,709 8,997 9,285 9,573 9,861 10,149 10,437 10,725 11,013 GS-11 9,221 9,536 9,851 10,166 10,481 10,796 11,111 11,426 11,741 12,056 Deputy Director, National Security Agency. GS-12 10,927 11,306 11,685 12,064 12,443 12,822 13,201 13,580 13,959 14,338 (106) (107) Director, Bureau of Land Management, Ďepartment of GS-13 12,873 13,321 13,769 14,217 14,665 15,113 15,561 16,009 16,457 16,905 GS-14 15,106 15,629 16,152 16,675 17,198 17,721 18,244 18,767 19,290 19,813 GS-15 17,550 18,157 18,764 19,371 19,978 20,585 21,192 21,799 22,406 23,013 the (108) Interior. Director, National Park Service, Department of the GS-16 20,075 20,745 21,415 22,085 22,755 23,425 24,095 24,765 25,435 GS-17 22,760 23,520 24,280 25,040 25,800 GS-18 25,890 Interior. (109) Director of International Scientific Affairs, Department of State. General Counsel of the Veterans' Administration. GENERAL SCHEDULE (110) (111) Members, Equal Employment Opportunity Commission Annual rates and steps Grade (4): (112) National Export Expansion Coordinator, Department of 1 2 3 4 5 6 7 8 9 10 Commerce. (113) Special Assistant to the Secretary of Defense. GS-1 $3,776 $3,902 $4,028 $4,154 $4,280 $4,406 $4,532 $4,658 $4,784 $4,910 Staff Director, Commission on Civil Rights. GS-2 4,108 4,245 4,382 4,519 4,656 4,793 4,930 5,067 5,204 5,341 GS-3 4,466 4,615 4,764 4,913 5,062 5,211 5,360 5,509 5,658 5,807 (114) (115) United States Attorney for the Northern District of GS-4 4,995 5,161 5,327 5,493 5,659 5,825 5,991 6,157 6,323 6,489 GS-5 5,565 5,751 5,937 6,123 6,309 6,495 6,681 6,867 7,053 7,239 GS-6 6,137 6,342 6,547 6,752 6,957 7,162 7,367 7,572 7,777 7,982 Illinois. (116) United States Attorney for the Southern District of GS-7 6,734 6,959 7,184 7,409 7,634 7,859 8,084 8,309 8,534 8,759 GS-8. 7,384 7,630 7,876 8,122 8,368 8,614 8,860 9,106 9,352 9,598 GS-9 8,054 8,323 8,592 8,861 9,130 9,399 9,668 9,937 10,206 10,475 California. (117) Assistant Secretary for Administration, Department of GS-10 8,821 9,115 9,409 9,703 9,997 10,291 10,585 10,879 11,173 11,467 GS-11 9,657 9,979 10,301 10,623 10,945 11,267 11,589 11,911 12,233 12,555 GS-12 11,461 11,843 12,225 12,607 12,989 12,371 13,753 14,135 14,517 14,899 GS-13 13,507 13,957 14,407 14,857 15,307 15,757 16,207 16,657 17,107 17,557 Transportation. (118) Director, United States National Museum, Smithsonia n GS-14 15,841 16,369 16,897 17,425 17,953 18,481 19,009 19,537 20,065 20,593 GS-15 18,404 19,017 19,630 20,243 20,856 21,469 22,082 22,695 23,308 23,921 GS-16 20,982 21,681 22,380 23,079 23,778 24,477 25,176 25,875 26,574 Institution. (119) Director, Smithsonian Astrophysical Observatory, Smith- GS-17 23,788 24,581 25,374 26,167 26,960 GS-18 27,055 sonian Institution. (120) Administrator for Economic Development. * * * * * (121) Administrator of the Environmental Science Services § 5545. Night, Sunday, standby, irregular, and hazardous duty differ- Administration. (122) Assistant Secretary of Housing and Urban Development ential. (a) Except as provided by subsection (b) of this section, nightwork for Administration. (123) Director, Construction Engineering, Post Office Depart- is regularly scheduled work between the hours of 6:00 p.m. and 6:00 a.m., and includes— ment. (124) Director, National Highway Safety Bureau. (1) periods of absence with pay during these hours due to holi- (125) Director, National Traffic Safety Bureau. * days; and * (2) periods of leave with pay during these hours if the periods * of leave with pay during a pay period total less than 8 hours. § 5332. The General Schedule. Except as otherwise provided by subsection (c) of this section, an The General Schedule, the symbol for which is "GS," applies. is the employee is entitled to pay for nightwork at his rate of basic pay plus (a) schedule for positions to which this subchapter basic premium pay amounting to 10 percent of that basic rate. This sub- basic Each employee pay to whom this subchapter applies is entitled to pay section and subsection (b) of this section do not modify section 180 in accordance with the General Schedule. of title 31, or other statute authorizing additional pay for nightwork. 158 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 159 and time before 6:00 a.m. as the beginning and end, respectively, of (b) The head of an agency may designate a time after 6:00 p.m. or periods of leave without pay. If the employee dies, a survivor as de- fined by section 8331 (10) of this title may make the deposit. If the nightwork a for the purpose of subsection (a). of this section, at business a post deposit is not made in full, retirement credit shall be allowed in ac- outside the United States where the customary hours of this cordance with the second sentence of subsection (f) of this section extend into the hours of nightwork provided by subsection (a) of or of a "labor organization" as defined by paragraph (3) of this sub- section. section. (c) The head of an agency, with the approval of the Civil Service (3) For the purposes of this subsection, "labor organization" means any organization of any kind, or any agency or employee representation com- Commission, may provide that- (1) an employee in a position requiring him regularly to remain than mittee or plan, in which employees participate and which exists for the at, or within the confines of, his station during longer purpose, in whole or in part, of dealing with employers concerning griev- ordinary periods of duty, a substantial part of which consists of ances, labor disputes, wages, rates of pay, hours of employment, or condi- remaining in a standby status rather than performing work, basis tions of work, and includes a national or international organization of shall receive premium pay for this duty on an annual this which such labor organization is a member. instead of premium pay provided by other provisions of in subchapter, except for irregular, unscheduled overtime duty under § 8706. Termination of insurance. excess of his regularly scheduled weekly tour. Premium pay this paragraph is determined as an appropriate percentage, (e) Notwithstanding subsections (a)-(c) of this section, an em- than 30 per centum, of such part of the rate of basic pay for the for [not in excess of 25 percent] not less than 20 per centum or more ployee who enters on approved leave without pay to serve as a full- time officer or employee of an organization composed primarily of position as does not exceed the minimum rate of basic pay of employees as defined by section 8701(a) of this title, or of a "labor actual work required in the position, the number of hours required the GS-10, by taking into consideration the number of hours organization" as defined by section 8332(k) (3) of this title, within 60 days after entering on that leave without pay, may elect to continue his in a standby status at or within the confines of the station, insurance and arrange to pay currently into the Employees' Life In- extent to which the duties of the position are made more onerous surance Fund, through his employing agency, both employee and by night, Sunday, or holiday work, or by being extended over agency contributions from the beginning of leave without pay. The periods of more than 40 hours a week, and other relevant factors; employing agency shall forward the premium payments to the Fund. or If the employee does not so elect, his insurance will continue during nonpay status and stop as provided by subsection (a) of this section. * § 8332. Creditable service. § 8906. Contributions. (k)(1) An employee who enters on approved leave without pay to (e) (1) An employee enrolled in a health benefits plan under this a full-time officer or employee of an organization composed chapter who is placed in a leave without pay status may have his cov- serve primarily as of employees as defined by section 8331(1) of this title, erage and the coverage of members of his family continued under the of "labor organization" as defined by paragraph (3) of this subsection, with plan for not to exceed 1 year under regulations prescribed by the Com- or within a 60 days after entering on that leave without pay, may file for mission. The regulations may provide for the waiving of contributions his employing agency an election to receive full retirement credit into by the employee and the Government. his periods of that leave without pay and arrange to pay currently retire- (2) An employee who enters on approved leave without pay to serve ment deductions and agency contributions that would be applicable the Fund, through his employing agency, amounts equal to the if as a full-time officer or employee of an organization composed primarily of employees as defined by section 8901 of this title, or of a "labor he were in pay status. If the election and all payments provided for by organization" as defined by section 8332(k)(3) of this title, within 60 this paragraph are not made, the employee may not receive credit not- days after entering on that leave without pay, may file with his em- the periods of leave without pay occurring after July 17, 1966, section. ploying agency an election to continue his health benefits enrollment withstanding the second sentence of subsection (f) of this and arrange to pay currently into the Employees Health Benefits [For the purpose of the preceding sentence, "employee" includes an Fund, through his employing agency, both employee and agency con- employee who was on approved leave without pay and serving as a tributions from the beginning of leave without pay. The employing fulltime officer or employee of such an organization on July 18, 1966, agency shall forward the enrollment charges so paid to the Fund. If and who filed a similar election before September 17, 1966. the employee does not so elect, his enrollment will continue during non- (2) An employee may deposit with interest an amount equal to pay status and end as provided by paragraph (1) of this subsection and retirement deductions representing any period or periods of approved implementing regulations. * leave without pay while serving, before July 18 1966, as a full-time of officer or employee of an organization composed primarily who em- ployees as defined by section 8331(1) of this title. An employee the makes the deposit shall be allowed full retirement credit for period POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 161 160 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 Intermediate grade, $13,507 minimum to $17,557 maximum. TITLE 38, UNITED STATES CODE Full grade $11,461 minimum to $14,899 maximum. Associate grade, $9,657 minimum to $12,555 maximum. § 4107. Grades and pay scales Nurse Schedule (a) The 4103 per of this title, other than Chief Medical Director, Director, annum full-pay scale or ranges for positions provided Deputy Assistant Director grade, $15,841 minimum to $20,593 maximum. in Chief section Medical Director, and Associate Deputy Chief Medical Chief grade, $13,507 minimum to $17,557 maximum. Senior grade, $11,461 minimum to $14,899 maximum. shall be as follows: [SECTION 4103 SCHEDULE Intermediate grade, $9,657 minimum to $12,555' maximum. Full grade, $8,054 minimum to $10,475 maximum. [Assistant Chief Medical Director, $25,890. Associate grade, $7,033 minimum to $9,139. [Medical Director, $22,760 minimum to $25,800 maximum. Junior grade, $6,137 minimum to $7,982 maximum. Nursing Service, $17,550 minimum to $23,013 maximum. maxi- (2) No person may hold the director grade unless he is serving as a [Director, [Director, Chaplain Service, $17,550 minimum to $23,013 director of a hospital, domiciliary, center, or outpatient clinic (inde- pendent). No person may hold the executive grade unless he holds the mum. [Chief Pharmacist, $17,550 minimum to $23,013 maximum. position of chief of staff at a hospital, center, or outpatient clinic (inde- [Chief Dietitian, $17,550 minimum to $23,013 maximum.] pendent), or comparable position. (c) Notwithstanding any other provision. of law, the per annum Section 4103 Schedule salary rate for each individual serving as a director for a hospital, domi- ciliary, or center who is not a physician shall not be less than the salary Assistant Chief Medical Director, $27,055. rate which he would receive under this section if his service as a direc- Medical Director, $23,788 minimum to $26,960 maximum. tor of a hospital, domiciliary, or center had seen service as a physician Director Director of Chaplain Service, $18,404 minimum to maximum. $23,921 of Nursing Service, $18,404 minimum to $23,921 maximum. maximum. in the director grade. The position of the director of a hospital, domi- ciliary, or center shall not be subject to [the provisions of the Classi- Chief Pharmacist, $18,404 minimum to $23,921 fication Act of 1949, as amended] chapter 51 and subchapter III of Dietitian, $18,404 minimum to $23,921 maximum. chapter 53 of title 5, United States Code. Chief The grades and per annum full-pay ranges for shall positions be as provided (b) (1) in paragraph (1) of section 4104 of this title follows: [PHYSICIAN AND DENTIST SCHEDULE FOREIGN SERVICE ACT OF 1946 [Director grade, $20,075 minimum to $25,435 maximum. [Executive grade, $18,730 minimum to $24,355 maximum. (22 U.S.C. 867 AND 870) [Senior grade, $15,106 minimum to $19,813 maximum. Chief grade, $17,550 minimum to $23,013 maximum. * * [Intermediate grade, $12,873 minimum to $16,905 maximum. SEC. 412. There shall be ten classes of Foreign Service officers, [Full grade, $10,927 minimum to $14,338 maximum. including the classes of career ambassador and of career minister. [Associate grade, $9,221 minimum to $12,056 maximum. The per annum salary of a career ambassador shall be at the rate provided by law for level IV of the Federal Executive Salary Schedule. [NURSE SCHEDULE The per annum salary of a career minister shall be at the rate provided by law for level V of such schedule. The per annum salaries of Foreign [Assistant Director grade, $15,106 minimum to $19,813 maximum. Service officers within each of the other classes shall be as follows: [Chief grade, $12,873 minimum to $16,905 maximum. [Senior grade, $10,297 minimum to $14,338 maximum. [Intermediate grade, $9,221 minimum to $12,056 maximum. Class 1 $23,935 $24,770 $25,890 Class 2 [Full grade, $7,696 minimum to $10,045 maximum. 19,333 20,004 20,675 $21,347 $22,018 $22,689 $23,360 Class 3 15,841 16,391 16,941 17,491 18,041 18,591 19,141 Associate grade, $6,730 minimum to $8,749 maximum. Class 4 12,873 13,321 13,769 14,217 14,665 15,113 15,561 Class 5 10,602 10,970 11,338 11,706 12,074 12,442 12,810 [Junior grade, $5,867 minimum to $7,649 maximum.] Class 6 8,843 9, 147 9,451 9,755 10,059 10,363 10,667 Class 7 473 7,724 7,975 8,226 8,477 8,728 8, 979 Class 8 6,451 6,664 6,877 7,090 7,303 7, 516 7,729 Physician and Dentist Schedule Director grade, $20,982 minimum to $26,574 maximum. Executive grade, $19,576 minimum to $25,444 maximum. Chief grade, $18,404 minimum to $23,921 maximum. Senior grade, $15,841 minimum to $20,593 maximum. 162 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 POSTAL REVENUE AND FEDERAL SALARY ACT OF 1967 163 Class 1 $24,944 $25,776 $27,055 Class 2 20,280 20,956 21,632 $22,308 $22,984 $23,660 $24,336 THIRD PARAGRAPH UNDER THE HEADING "OFFICE Class s 16,616 17,170 17,724 18,278 18,832 19,386 19,940 Class 4 13,507 13,957 14,407 14,857 15,307 15,757 16,207 OF THE ARCHITECT OF THE CAPITOL" IN THE Class 5 11,120 11,491 11,86£ 12,233 12,604 12,975 13,346 Class 6 9,267 9,576 9,885 10,194 10,503 10,812 11,121 Class 7 7,815 8,076 8,336 8,596 8,856 9,116 9,376 LEGISLATIVE BRANCH APPROPRIATION ACT, 1960 Class 8 6,734 6,959 184 7,409 7,634 7,859 8,084 (73 STAT. 407) * ARCHITECT OF THE CAPITOL SEC. 415. (a) There shall be ten classes of Foreign Service staff officers and employees, referred to hereafter as staff officers and OFFICE OF THE ARCHITECT OF THE CAPITOL employees. The per annum salaries of such staff officers and employees SALARIES within each class shall be as follows: * Hereafter, the Architect of the Capitol is authorized, without Class 1 $15,841 $16,391 $16,941 $17,491 $18,041 $18,591 $19,141 $19,691 $20,241 $20,791 regard to the Classification Act of 1949, as amended, to fix the Class 2 12,873 13,321 13,769 14,217 14,665 15,113 15,561 16,009 16,457 16,905 Class 3 10,602 10,970 11,338 11,706 12,074 12,442 12,810 13,178 13,546 13,914 Class 4 8,843 9,147 9,451 9,755 10,059 10,363 10,667 10,971 11,275 Class 5 7,974 8,246 8,518 8,790 9,062 9,334 9,606 9,878 10,150 tion of the Architect of the Capitol", of one position under the appropria- pensation of three positions under the appropriation "Salaries, Office com- 11,579 10,422 Class 6 7,201 7,441 7,681 7,921 8,161 8,401 8,641 8,881 9,121 9,361 tion "Capitol Buildings", and of one position under the appropria- Class 7 6,614 6,832 7,050 7,268 7,486 7,704 7,922 8,140 8,358 8,576 Class 8 5,853 6,051 6,249 6,447 6,645 6,843 7,041 7,239 7,437 7,635 "House Office Buildings" at a basic rate of [$7,700] $8,200 Class 9 5,341 5,517 5,693 5,869 6,045 6,221 6,397 6,573 6,749 6,925 Class 10 4,776 4,936 5,096 5,256 5,416 5,576 5,736 5,896 6,056 6,216 Architect of the Capitol. the positions of Architect, Assistant Architect, or Second Assistant to annum each: Provided, That this provision shall not be applicable per Class 1 $16,616 $17,170 $17,724 $18,278 $18,839 $19,386 $19,940 $20,494 $21,048 $21,602 SECTION 203 OF THE FEDERAL LEGISLATIVE SALARY Class 2 13,507 13,957 14,407 14,857 15,307 15,757 16,207 16,657 17,107 17,557 Class s 11,120 11,491 11,862 12,233 12,604 12,975 13,346 13,717 14,088 14,459 ACT OF 1964 (78 STAT. 415) Class 4 9,267 9,576 9,885 10,194 10,503 10,812 11,121 11,430 11,739 12,048 Class 5 8,351 8,629 8,907 9,185 9,463 9,741 10,019 10,297 10,575 10,853 Class 6 7,524 7,775 8,026 8,277 8,528 8,779 9,030 9,281 9,532 9,783 SEC. 203. (a) The compensation of the Comptroller General of the Class 7 6,905 7,135 7,365 7,595 7,825 8,055 8,285 8,515 8,745 8,975 Class 8 6,125 6,329 6,533 6,737 6,941 7,145 7,349 7,553 7,757 7,961 United States shall be at the rate of $30,000 per annum. Class 9 5,575 5,761 5,947 6,133 6,319 6,505 6,691 6,877 7,063 7,249 Class 10 4,995 5,161 5,327 5,493 5,659 5,825 5.991 6,157 6,323 6,489 United States shall be at the rate of [$28,500] $29,500 per annum. (b) The compensation of the Assistant Comptroller General of the General Accounting Office, the Librarian of Congress, the Public (c) The compensation of the General Counsel of the United States TITLE 28, UNITED STATES CODE [$27,000] $28,750 per annum. Printer, and the Architect of the Capitol shall be at the rate of * Deputy be Public Printer, and the Assistant Architect of the Capitol shall (d) The compensation of the Deputy Librarian of Congress, the § 603. Salaries. at the rate of [$25,500] $27,500 per annum. [The Director shall receive a salary of $27,000 a year. The Deputy Capitol shall be at the rate of [$23,500] $25,000 (e) The compensation of the Second Assistant Architect of the Director shall receive a salary of $26,000 a year. The salary of the Director shall be the same as the salary of a United tives shall be at the rate of $12,500 per annum. (f) The compensation of the Chaplain of the House per annum. of Representa- States District Judge. The salary of the Deputy Director shall be in the same amount as the rate of basic pay for level V of the Executive Schedule in title 5. be at Arms of the Senate, and the Legislative Counsel of the Senate shall (g) The compensation of the Secretary of the Senate, the Sergeant at the rate of $27,500 per annum. rate of $15,000 per annum. (h) The compensation of the Chaplain of the Senate shall be at the Emplaitle Bill, - (7). 91sT CONGRESS 1ST SESSION H.R.4 IN THE HOUSE OF REPRESENTATIVES JANUARY 3, 1969 Mr. DULSKI introduced the following bill; which was referred to the Com- mittee on Post Office and Civil Service A BILL To modernize the United States postal establishment, to provide for efficient and economical postal service to the public, to improve postal employee-management relations, and for other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Postal Reform Act of 4 1969". 5 TITLE I-CONGRESSIONAL FINDINGS WITH 6 RESPECT TO POSTAL REFORM 7 SEC. 101. (a) The Congress hereby finds that- 8 (1) the United States postal establishment, as 9 now constituted, has not been given the means, and can- FORD LIBRARY I 2 3 1 not be expected, to continue to provide-and certainly 1 than disgraceful in many instances, seldom approaches 2 not to extend-the present quality and scope of postal 2 those desirable standards long observed in modern pro- 3 service in the face of the tremendous increases in mail 3 gressive industrial organizations; 4 volume expected in the future; 4 (5) the public interest demands, and it is the re- 5 (2) serious handicaps are imposed on the postal 5 sponsibility of the Congress to provide, prompt and 6 establishment by certain legislative, budgetary, finan- 6 effective measures to remove these handicaps and limi- 7 cial, and personnel policies that are outmoded, unneces- 7 tations on the postal establishment, to give postal man- 8 sary, and inconsistent with the modern management and 8 agement the means to improve the value and the scope 9 business practices which should be available to a Post- 9 of postal service at lowest possible rates and fees, and to 10 master General as aids in the performance of his heavy 10 create a lasting foundation for a modern, dynamic, and 11 responsibility to provide efficient and economical postal 11 viable postal institution that is both equipped and em- 12 service to the American public; 12 powered at all times to satisfy the postal requirements 13 (3) the existing limitations imposed by various 13 of the future economic, cultural, and social growth of 14 laws on the authority of the Postmaster General to pro- 14 the Nation; 15 cure transportation for mail are SO rigid as to frequently 15 (6) the major areas to which corrective measures 16 prevent the most expeditious and economic movement of 16 should be first directed are- 17 mail, and, therefore, a revision of such laws, in order 17 (A) the strengthening of top-level postal 18 to provide greater flexibility to the Postmaster General 18 management authority-consistent with the level of 19 in this regard, will facilitate more rapid and less expen- 19 responsibility; 20 sive delivery of the mail, permit more economic utiliza- 20 (B) the provision of critically needed capital 21 tion of the Nation's transportation resources, and en- 21 funds, with a necessary measure of access and con- 22 courage more rapid and imaginative development of new 22 trol by top management, and a program for the 23 transportation facilities; 23 systematic review and adjustment of postal reve- 24 (4) the working environment of the majority of 24 nues coupled with an effective authorization for the 25 postal employees, which has been described as no less 25 use of revenues for payment of current expenses; 4 5 1 (C) the clarification of postal transportation 1 (3) the improvement of postal employee-manage- 2 policy; 2 ment relations; and 3 (D) the modernization of postal employee- 3 (4) the achievement of postal reform generally. 4 management relations and employees' working en- 4 TITLE I-APPOINTMENT OF POSTMASTERS 5 vironment; and 5 SEC. 201. (a) Section 3311 (relating to method of ap- 6 (E) the establishment and maintenance of an 6 pointment of postmasters) of title 39, United States Code, 7 orderly, effective system for the fixing of fair and 7 is amended to read as follows: 8 reasonable postal rates and fees; and 8 "§ 3311. Method of appointment 9 (7) the needed postal reforms can best be accom- 9 " (a) The Postmaster General shall appoint postmasters 10 plished, and should be accomplished-within the frame- 10 at post offices of the first, second, and third classes in the 11 work of the historic philosophy and the fundamental 11 competitive civil service without term. He shall make the 12 principles upon which the Government is founded- 12 appointments in accordance with the civil service laws and 13 without radically changing the traditional character of 13 rules by- 14 the postal service as a direct duty of the Government, 14 " (1) competitive examinations; and 15 effectuated through the delegation of authority and re- 15 " (2) promotions from within the postal service. 16 sponsibility to the executive departments and agencies 16 " (b) The Postmaster General shall appoint postmasters 17 in a manner that will be most consistent with the gen- 17 at post offices of the fourth class without term. 18 eral welfare and fully responsive to the interests and the 18 " (c) Notwithstanding any other provision of law but 19 needs of the public. 19 subject to subsection (g) of this section, the Postmaster 20 (b) It is, therefore, the purpose of this Act to provide 20 General shall make each appointment to a position of post- 21 a means for- 21 master at a post office of any class without regard to any 22 (1) the accomplishment of the modernization of 22 recommendation or statement, oral or written, with respect 23 the postal establishment; 23 to any person who requests, or is under consideration for, 24 (2) the provision of rapid, efficient, and economical 24 appointment to a position of postmaster of any class, made 25 postal service to the public; 25 by- 6 7 1 " (1) any Member of the Senate or House of Rep- 1 statement, if written, received by him, appropriately 2 resentatives (including the Resident Commissioner from 2 marked as in violation of this section, to the person 3 Puerto Rico) ; 3 or organization making or transmitting the same. 4 " (2) any elected official of the government of any 4 " (e) A person who requests, or is under consideration 5 State (including the Commonwealth of Puerto Rico) 5 for, appointment to a position of postmaster at a post office 6 or of any county, city, or other political subdivision of 6 of any class is hereby prohibited from requesting or solicit- 7 such State or Commonwealth; 7 ing any such recommendation or statement from any person 8 " (3) any official of a national, State, county, or 8 or organization within the purview of subparagraph (1) 9 municipal, or other local political party; or 9 (2), (3), or (4) of subsection (c) of this section. Any 10 " (4) any other individual or organization. 10 person making such solicitation or request, knowing the 11 " (d) Notwithstanding any other provision of law but 11 same to be in violation of this subsection, is disqualified for 12 subject to subsection (g) of this section, a person or orga- 12 appointment to the position of postmaster concerned. 13 nization referred to in subparagraph (1) (2), (3) or 13 (f) Each application or informational form of the 14 (4) of subsection (c) of this section is hereby prohibited 14 Federal Government used in connection with an application 15 from making or transmitting to the Postmaster General, or 15 for appointment to a position of postmaster at a post office 16 to any other officer or employee of the Federal Govern- 16 of any class shall contain appropriate language, in con- 17 ment, any recommendation or statement, oral or written, 17 spicuous and legible type in contrast by typography, layout, 18 with respect to any person who requests, or is under con- 18 or color with other printing in the application or informa- 19 sideration for, appointment to a position of postmaster at 19 tional form, informing the applicant of the provisions of this 20 a post office of any class. The Postmaster General and any 20 section. 21 other officer or employee of the Federal Government, subject 21 " (g) This section shall not be held or considered to 22 to subsection (g) of this section- 22 prohibit- 23 "(1) shall not solicit, request, consider, or accept 23 " (1) the solicitation, acceptance, and consideration 24 any such recommendation or statement; and 24 by the Postmaster General or other authorized officer or 25 " (2) shall return any such recommendation or 25 employee of the Federal Government, or 8 9 1 " (2) the furnishing and transmission to the Post- 1 " (ii) the residence requirements for post- 2 master General or such authorized officer or employee 2 masters imposed by section 3312 of this title; or 3 by any other individual or organization, 3 " (iii) both; or 4 of any statement with respect to a person who requests, or is 4 " (C) the statement is furnished by a former 5 under consideration for, appointment to a position of post- 5 employer of the person who requests, or is under 6 master, if- 6 consideration for, appointment to a position of post- 7 " (A) the statement is furnished pursuant to a 7 master, pursuant to a request of the Postmaster 8 request or requirement of the Postmaster General 8 General, and consists solely of an evaluation of the 9 and consists solely of an evaluation of the work per- 9 work performance, ability, aptitude, and general 10 formance, ability, aptitude, and general qualifications 10 qualifications of such person during his employment 11 of an employee in the postal service who is under 11 with such former employer." 12 consideration for promotion to a position of post- 12 (b) Section 3315 (relating to the filling of vacancies 13 master in accordance with subparagraph (2) of sub- 13 in positions of postmaster) of title 39, United States Code, 14 section (a) of this section; 14 is amended by adding at the end thereof the following new 15 " (B) the statement is furnished by an individ- 15 subsection: 16 ual or organization referred to in subparagraph (4) 16 " (d) The prohibitions, restrictions, exceptions, and re- 17 of subsection (c) of this section pursuant to a re- 17 lated provisions of section 3811 of this title governing the 18 quest made by an authorized representative of the 18 appointment of postmasters also shall apply with respect to 19 Federal Government solely in order to determine 19 the interim appointment, assignment, or designation of any 20 whether the person who requests, or is under con- 20 person in accordance with subparagraphs (1) to (4), in- 21 sideration for, appointment to a position of post- 21 clusive, of subsection (a) of this section.". 22 master meets— 22 (c) The amendments made by subsections (a) and 23 " (i) the loyalty, suitability, and character 23 (b) of this section shall not affect the status or tenure, on 24 requirements for employment with the Federal 24 the effective date of this section, of- 25 Government; H.R. 4-2 10 11 1 (1) postmasters in office; and 1 including an electric urban and interurban railway com- 2 (2) persons appointed, assigned, or designated in 2 mon carrier; 3 accordance with subparagraphs (1) to (4), inclusive, 3 " (3) 'motor carrier' means any common carrier of 4 of section 3315 (a) of title 39, United States Code. 4 property by motor vehicle as defined in section 303 5 TITLE III-POSTAL TRANSPORTATION 5 (a) (14) of title 49 (section 203 (a) (14) of the Inter- 6 6 REVISION OF CHAPTER 95 OF TITLE 39, UNITED STATES state Commerce Act) which holds a certificate of public 7 7 CODE convenience and necessity issued by the Interstate Com- 8 SEC. 301. Chapter 95 of title 39, United States Code, is 8 merce Commission, except that the Postmaster General, 9 9 amended to read as follows: as he deems necessary in the public interest, may utilize 10 10 "Chapter 95.-TRANSPORTATION OF MAIL BY RAIL- motor carriers holding a permit or a certificate of regis- 11 11 ROAD, MOTOR CARRIER, AND FREIGHT FOR- tration from the Commission upon the filing of a notice 12 12 WARDER in the Federal Register specifying the types and classes "Sec. 13 of such carriers eligible to transport mail; "6201. Definitions. "6202. Service by carriers. 14 " (4) 'freight forwarder' means any regulated "6203. Authorization of service by carriers. "6204. Facilities provided by carriers. 15 freight forwarder which holds itself out to the general "6205. Changes in service. "6206. Evidence of service. 16 "6207. Fines and deductions. public as a common carrier to transport or provide trans- "6208. Interstate Commerce Commission to fix rates. 17 "6209. Procedures. portation of property as authorized by a permit issued "6210. Special rates. "6211. Authority to distinguish between classes of mail. 18 by the Commission; and "6212. Transportation by motor vehicle. "6213. Statistical studies. 19 " (5) 'Commission' means the Interstate Commerce "6214. Special contracts. "6215. Railroad operations, receipts, and expenditures. 20 Commission. 13 "§ 6201. Definitions 21 "§ 6202. Service by carriers 14 "As used in this chapter- 22 "This chapter applies to mail transportation performed 15 " (1) 'carrier' means a railroad, a freight forwarder, 23 by- 16 and a motor carrier; 24 " (1) a railroad by means of rail, by means of a 17 " (2) 'railroad' means a railway common carrier, 13 12 1 combination of rail and vessel, or by means of motor 1 shall transport on any train or motor vehicle operated by that 2 vehicle as provided by section 6212 of this title; or 2 carrier, upon the exhibition of their credentials and without 3 3 " (2) a carrier other than a railroad by means extra charge therefor- 4 4 other than those described in subparagraph (1) of this " (1) persons in charge of the mail when on duty 5 5 section. and traveling to and from duty; and 6 6 "§ 6203. Authorization of service by carriers " (2) accredited agents and officers, including postal 7 7 " (a) The Postmaster General may establish carrier mail inspectors, of the Department while traveling on official 8 8 routes and authorize mail transportation service thereon. He business. 9 9 may transport equipment and supplies of the Department as " (f) At any time after the effective date of this chapter, 10 mail thereon. 10 the Postmaster General may issue a statement or statements 11 " (b) A carrier shall transport mail, including equipment 11 of service, which shall be published in the Federal Register, 12 and supplies of the Department, offered by the United States 12 describing the services required of carriers for mail trans- 13 13 for transportation, in the manner, under the conditions, and portation. Each statement of service shall set forth— 14 14 with the type of service prescribed by the Postmaster Gen- " (1) the Postmaster General's requirements for mail 15 15 eral. The carrier is entitled to receive fair and reasonable transportation; 16 16 compensation for the transportation and service connected " (2) the units of service with respect to which com- 17 17 therewith. pensation (as determined by the Postmaster General 18 18 " (c) The Postmaster General shall determine the rail- to be fair and reasonable for the service required) will 19 19 road trains and the motor vehicles upon which mail shall be be paid; and 20 20 transported. " (3) such other information as may be material to 21 21 " (d) A carrier shall transport with due speed, on any such mail transportation and the establishment of rates 22 22 train or motor vehicle it operates, such mail, including equip- of compensation therefor. 23 23 ment and supplies of the Department, as the Postmaster "§ 6204. Facilities provided by carriers 24 General directs. 24 " (a) A carrier engaged in the transportation of mail 25 " (e) A carrier engaged in the transportation of mail 25 shall provide the following equipment and facilities- 14 15 1 " (1) cars or motor vehicles or parts thereof used 1 rier post office car or vehicle unless it is constructed of steel, 2 in the transportation and distribution of mail; 2 steel underframe, or equally indestructible material. 3 " (2) facilities for protecting and handling mail in 3 " (c) A carrier shall place cars or vehicles used for full 4 its custody; 4 or apartment carrier post office service in position at such 5 " (3) station space and rooms for handling, storing, 5 times before departure as the Postmaster General directs. 6 6 and transfer of mail in transit, including the separation "§ 6205. Changes in service 7 thereof by packages for connecting lines, and for dis- "The Postmaster General- 7 8 8 tribution of registered or certified mail in transit; and " (1) may authorize, according to the need therefor, 9 9 " (4) when required by the Postmaster General, new or additional mail transportation service by carriers 10 10 offices for employees of the postal service engaged in at the rates of compensation fixed pursuant to this 11 11 station work, in which mail from station boxes may be chapter; and 12 12 distributed if additional space is not required therefor. " (2) may reduce or discontinue service with pro 13 13 " (b) Carrier post office cars or vehicles, or parts thereof. rata reductions in compensation; but 14 14 used for mail transportation and distribution, must be of such " (3) may not pay for additional service which he 15 15 construction, style, length, and character, and must be has not specifically authorized. 16 16 equipped in such manner, as the Postmaster General requires. "§ 6206. Evidence of service 17 17 Such cars or vehicles, or parts thereof, must be constructed, "A carrier shall submit evidence of its performance of 18 18 equipped, maintained, heated, lighted, and cleaned by and at mail transportation service, signed by an authorized official 19 19 the expense of the carrier. The Postmaster General may not of that carrier, in such form and at such times as the Post- 20 20 pay for full and apartment carrier post office service unless master General requires. Mail transportation service is con- 21 21 the car or vehicle furnished therefor is sound in material and sidered that of the carrier performing the service regardless 22 22 construction, is equipped with sanitary drinking water con- of the ownership of the property used by the carrier. 23 23 tainers and toilet facilities, and is regularly and thoroughly "§ 6207. Fines and deductions 24 " 24 cleaned. He may not accept or pay for service by a full car- (a) The Postmaster General may fine any carrier in 16 17 1 an amount not to exceed $500 for each day the carrier 1 " (5) other delinquencies in mail transportation and 2 refuses to perform mail transportation service required by 2 the service connected therewith. 3 the Postmaster General at rates of compensation established 3 " (c) The Postmaster General may make deductions 4 under this chapter. 4 from the compensation of a carrier for failure of that carrier 5 " (b) the Postmaster General shall fine a carrier engaged 5 to perform mail transportation service as required. If the 6 in the transportation of mail such amount as he deems reason- 6 failure to perform is due to the fault of the carrier, the Post- 7 able for- 7 master General may deduct a sum not exceeding three times 8 (1) failure or refusal by that carrier, when re- 8 the compensation applicable to such service. 9 quired by the Postmaster General, to transport mail, 9 "§ 6208. Interstate Commerce Commission to fix rates. 10 equipment, and supplies on any train or motor vehicle 10 " (a) The Commission shall determine, and fix from time 11 operated by that carrier; 11 to time, the fair and reasonable rates of compensation for the 12 " (2) failure or refusal by that carrier, when re- 12 transportation of mail by carrier and the service connected 13 quired by the Postmaster General, to furnish cars or 13 therewith, and shall prescribe the method for computing 14 motor vehicles, or apartments in cars or motor vehicles, 14 such rates of compensation. The Commission shall publish 15 for distribution purposes; 15 its orders stating its determinations under this section which 16 " (3) failure or refusal by that carrier to construct, 16 shall remain in force until changed by it after notice and 17 equip, maintain, heat, light, and clean cars or motor 17 hearing. 18 vehicles or apartments in cars or motor vehicles for 18 " (b) For the purpose of determining and fixing rates of 19 distribution purposes; 19 compensation under this section, the Commission may make 20 " (4) failure or refusal by that carrier to furnish 20 just and reasonable classifications of carriers and, where just 21 appliances for use in case of accident, as required by the 21 and equitable, fix general rates applicable to carriers in the 22 Postmaster General, in cars or motor vehicles, or apart- 22 same classification. 23 ments in cars or motor vehicles, used for distribution 23 " (c) In determining and fixing fair and reasonable 24 purposes; or H.R. 4-3 18 19 1 rates under this section, the Commission shall consider the 1 the transportation of mail by common carriers, and the 2 relation between carriers, as public corporations, and the 2 services in connection therewith, and shall prescribe the 3 Government, and the nature of the public service as distin- 3 method for computing such rates of compensation. Rates of 4 guished, if there is a distinction, from the ordinary transpor- 4 compensation fixed by the Commission pursuant to this 5 tation business of the carriers. 5 subsection shall have effect prospectively from the date the 6 "§ 6209. Procedures 6 Commission's order fixing such rates of compensation is 7 " (a) The initial rates of compensation at which mail 7 issued or such later date as the Commission shall prescribe 8 shall be transported by carriers pursuant to the provisions 8 in its order. 9 of this chapter shall be the rates of compensation described 9 " (d) Except as authorized by sections 6210 and 6214 10 in the statement or statements of service issued by the Post- 10 of this title, or the applicable provisions of any other law, the 11 master General under section 6203 of this chapter. 11 Postmaster General shall pay a carrier the rates of compen- 12 " (b) At any time after six months from the issuance 12 sation SO determined and fixed for application at such stated 13 by the Postmaster General of a statement of service and 13 times as named in the order. 14 initial rates, or at any time after six months from the entry 14 " (e) The Postmaster General may file with the Com- 15 of an order by the Commission fixing rates of compensation 15 mission a comprehensive plan, stating- 16 for the transportation of mail as provided in subsection (c) 16 " (1) his requirements for the transportation of 17 of this section, the Postmaster General, any carrier, or a 17 mail by carrier; 18 group of such carriers may file with the Commission a peti- 18 " (2) the number, equipment, size, and construction 19 tion requesting an investigation of the initial rates of com- 19 of the cars or motor vehicles necessary for the transpor- 20 pensation or of the rates of compensation fixed by the 20 tation of mail; 21 Commission. 21 " (3) the character and speed of the trains or motor 22 " (c) Upon the filing of a petition under subsection 22 vehicles which are to carry the various kinds of mail; 23 (b) of this section, and for good cause shown, the Com- 23 " (4) the service, both terminal and en route, which 24 mission shall promptly institiute an investigation to deter- 24 carriers are to render; 25 mine and fix fair and reasonable rates of compensation for 25 " (5) the rates of compensation for the service 21 20 1 required which he believes to be fair and reasonable; 1 for first-class mail when lower transportation rates or other 2 and 2 economies may be secured without material detriment of the 3 " (6) all other information which may be material 3 service. 4 to any inquiry pursuant to subsection (f) of this section, 4 "§ 6212. Transportation by motor vehicle 5 but such other information may be filed at any time 5 "The Postmaster General may permit a railroad to per- 6 during the inquiry in the discretion of the Commission. 6 form mail transportation by motor vehicle over highways in 7 (f) When a comprehensive plan is filed, the Commis- 7 lieu of service by rail at rates of compensation not exceeding 8 sion shall give notice thereof of not less than thirty days to 8 those allowable for similar service by rail. 9 each carrier required by the Postmaster General to transport 9 "§ 6213. Statistical studies 10 mail, A carrier may file its answer to the plan at the time 10 "The Postmaster General may arrange for weighing and 11 fixed by the Commission, but not later than thirty days after 11 measuring mail transported on carrier mail routes and make 12 the expiration date for the answer to be filed fixed by the 12 other computations for statistical and administrative purposes 13 Commission in the notice, and the Commission shall proceed 13 to carry out the purposes of this chapter and pay the 14 with the hearing. 14 expenses thereof out of funds available to the Department. 15 "§ 6210. Special rates 15 "§ 6214. Special contracts 16 "Upon petition by the Postmaster General the Com- 16 "The Postmaster General may enter into special con- 17 mission shall determine and fix carrier carload or less- 17 tracts with carriers for terms not to exceed four years for 18 than-carrier-carload rates for the transportation of fourth-class 18 the transportation of mail, and for the service connected 19 and periodical mail. A carrier shall perform the service at 19 therewith, without advertising for bids. He may contract to 20 the rates SO determined when requested to do SO and under 20 pay lower rates of compensation, or, if in his judgment 21 the conditions prescribed by the Postmaster General. 21 conditions warrant, higher rates of compensation, than those 22 "§ 6211. Authority to distinguish between classes of mail 22 determined and fixed by the Commission. 23 "The Postmaster General may distinguish between the 23 "§ 6215. Railroad operations, receipts, and expenditures 24 several classes of mail and arrange for less frequent dis- 24 "The Postmaster General shall request all railroad com- 25 patches of mail other than first-class mail than he arranges 25 panies transporting the mails to furnish, under seal, such 22 23 1 data relating to the operations, receipts, and expenditures of 1 the transportation of mail. He may provide in any such con- 2 such railroads as may, in his judgment, be necessary to 2 tract for the payment of rates of compensation which are 3 enable him to ascertain the cost of mail transportation and 3 higher or lower than those prescribed pursuant to section 4 the proper compensation to be paid for the same. He shall, in 4 1376 of title 49 for the transportation of mail between the 5 his annual report to Congress, make such recommendations, 5 points to be served under the contract." 6 founded on the information obtained under this section, as 6 SEC. 304. The table of contents for chapter 97 of title, 7 shall, in his opinion, be just and equitable." 7 39, United States Code, is amended by inserting therein 8 SEC. 302. The table of contents of part VI of title 39, 8 immediately following: 9 United States Code, is amended by striking out "6301. Rules and regulations." "95. Transportation of Mail by Railroad." 9 the following: 10 and inserting in lieu thereof "6301a. Contracting for transportation of mail by air." 10 MISCELLANEOUS PROVISIONS "95. Transportation of Mail by Railroad, Motor Carrier, and Freight For- warder." 11 SEC. 305. Section 6402 of title 39, United States Code, 11 PROCUREMENT OF AIR TRANSPORTATION BY 12 is amended to read as follows: 12 NEGOTIATED CONTRACT 13 "§ 6402. Authority to contract for mail transportation 13 SEC. 303. Chapter 97 of title 39, United States Code, is 14 "The Postmaster General may contract for necessary 14 amended by inserting immediately after section 6301, the 15 domestic or foreign transportation of mail, except that- 15 following new section; 16 (1) transportation of mail by railroad shall be 16 "§ 6301a. Contracting for transportation of mail by air 17 obtained in accordance with chapter 95 of this title and 17 "Notwithstanding any other provision of law and, when- 18 as otherwise provided by law; 18 ever he shall find it in the public interest, the Postmaster 19 " (2) transportation of mail by air shall be obtained 19 General may, without advertising for bids, contract for the 20 in accordance with chapter 97 of this title; 20 transportation of mail by aircraft with any certified air car- 21 " (3) highway post office service shall be obtained 21 rier between any of the points between which such air carrier 22 in accordance with chapter 99 of this title; 22 is authorized by the Civil Aeronautics Board to engage in 24 25 1 " (4) delivery and collection service may not be 1 SEC. 308. (a) The heading for chapter 101 of title 39, 2 established or extended under any star route contract on 2 United States Code, is amended to read as follows: 3 a rural route other than a vacant rural route which does 3 "Chapter 101.-TRANSPORTATION OF MAIL OTHER 4 not meet the minimum standards established by the Post- 4 THAN BY RAIL, AIR, HIGHWAY POST OFFICE, 5 master General; 5 REGULATED MOTOR CARRIER OR FREIGHT 6 " (5) transportation of mail by regulated motor 6 FORWARDER". 7 carrier or freight forwarder, as defined in section 6201 of 7 (b) The table of contents of part VI of title 39, United 8 this title, shall be obtained in accordance with chapter 95 8 States Code, is amended by striking out 9 of this title, or as provided in this chapter; and "101. Transportation of Mail Other Than by Rail, Air, or Highway Post Office." 10 " (6) transportation of mail, in passenger-carrying 9 and inserting in lieu thereof 11 motor vehicles, by passenger common carriers shall be "101. Transportation of Mail Other Than by Rail, Air, Highway Post 12 obtained in accordance with section 6402a of this title." Office, Regulated Motor Carrier or Freight Forwarder." 10 13 SEC. 306. Chapter 101 of title 39, United States Code, is SEC. 309. (a) Subsection (a) of section 6420 of title 14 amended by inserting immediately following section 6410 a 11 39, United States Code, is repealed. 12 15 new section 6410a, to read as follows: (b) Subsection (b) of such section is amended by 16 "§ 6410a. Through service by intermodal transportation 13 striking out "(b)" at the beginning thereof. 14 SEC. 310. This title does not- 17 "The Postmaster General may make contracts, without 15 18 advertising for bids, for the transportation of mail by contract (1) impair the authority of the Postmaster General 16 19 motor vehicle service when such service is a part of a through to enter into star route contracts under provisions of 17 law other than those contained in this title; 20 service with rail, air, or vessel transportation." 18 21 (2) impair or suspend contracts for the transporta- SEC. 307. The table of contents of chapter 101 of title 19 tion of mail which are in effect on the effective date of 22 39, United States Code, is amended by inserting immediately 20 this title; or 23 following: 21 "6410. Transportation of mail by vessel as freight or express." (3) modify or change any rate of compensation 22 24 the following: for the transportation of mail under chapter 95 of title "6410a. Through service by intermodal transportation." H.R. 4-4 26 27 1 39, United States Code, as in effect immediately prior 1 "POSTAL MODERNIZATION AUTHORITY 2 to the effective date of this title, until appropriate action "2121. Definitions. "2122. Establishment and purposes. is taken in accordance with such chapter as amended by "2123. Administrator. 3 "2124. Executive Director. "2125. Appointment, duties, and pay of officers and employees. 4 this title. "2126. Powers. "2127. Transfers of property. 5 SEC. 311. Section 6405 of title 39, United States Code, "2128. Leases. "2129. Bonds. 6 is amended to read as follows: "2130. Accounts. "2131. Protection of public moneys and property. 7 "§ 6405. Duration of contracts 2 "GENERAL PROVISIONS 8 " (a) The Postmaster General may make contracts for 3 "§ 2101. Gifts, donations of services and property 9 the transportation of mail for terms not in excess of four 4 "The Postmaster General and the Postal Modernization 10 years. 5 Authority may accept gifts and donations of services and 11 " (b) This section does not apply to mail messenger serv- 6 property in aid of the activities of the Department or the 12 ice or to any contract for which the maximum term is pro- 7 Authority. 13 vided by any other provision of this title." 8 "§ 2117. Sublease of property 14 TITLE IV-MODERNIZATION OF POSTAL 9 "The Postmaster General may sublease real property, 15 FACILITIES 10 and any interest therein, acquired for use or used for postal 16 SEC. 401. (a) Chapter 23 of title 39, United States 11 purposes on such terms as he deems appropriate to the best 17 Code, is amended to read as follows: 12 interests of the United States. 18 "Chapter 23.-PROPERTY AND POSTAL 13 "POSTAL MODERNIZATION AUTHORITY 19 MODERNIZATION 14 "§ 2121. Definitions 20 "GENERAL PROVISIONS 15 "As used in this chapter- "Sec. "2101. Gifts, donations of services and property. "2117. Sublease of property. 28 29 1 " (1) 'Administrator' means the Administrator of 1 "§ 2123. Administrator 2 the Postal Modernization Authority; 2 "The Postmaster General shall be the Administrator 3 " (2) 'Authority' means the Postal Modernization 3 of the Authority. If there is no Postmaster General, the per- 4 Authority established by section 2122 of this chapter; 4 son acting as Postmaster General shall serve as acting 5 " (3) 'bonds' means negotiable and nonnegotiable 5 Administrator of the Authority. The Administrator or the 6 bonds, notes, and other evidences of indebtedness or 6 acting Administrator, as the case may be, of the Authority 7 other obligations issued by the Authority; and 7 shall exercise the powers and duties of the Authority. 8 " (4) 'equipment' includes machinery and vehicles. 8 "§ 2124. Executive Director 9 "§ 2122. Establishment and purposes 9 "There shall be an Executive Director of the Authority, 10 " (a) There is established the Postal Modernization 10 appointed by the Administrator, who shall discharge such 11 Authority, a body corporate, as an instrumentality of the 11 administrative and executive functions of the Authority as 12 United States, whose principal office shall be in Washing- 12 the Administrator may direct. The term of office of the 13 ton, District of Columbia. The Administrator of the Au- 13 Executive Director shall be for five years unless he is 14 thority shall be deemed the incorporator. 14 sooner removed by the Administrator for cause. 15 15 " (b) The Authority is established for the purposes of- "§ 2125. Appointment, duties, and pay of officers and 16 16 " (1) financing, acquiring, improving, replacing, employees 17 17 modernizing, and holding title to property, facilities, "Subject to the prohibitions, restrictions, exceptions, 18 systems, and equipment necessary for the administration 18 and related provisions of section 3311 of this title (govern- 19 and operation of the postal service, together with plan- 19 ing the appointment of postmasters), the Administrator 20 ning related thereto; 20 shall- 21 21 " (2) leasing such property, facilities, systems, and " (1) appoint, in accordance with the provisions 22 22 equipment to the Department; and of title 5 governing appointments in the competitive 23 23 " (3) performing other functions and activities re- service, and define the duties of, such officers and 24 24 lated to matters within the purview of subparagraphs employees as may be necessary to carry out the powers, 25 25 (1) and (2) of this subsection. functions, and duties of the Authority; and 30 31 1 " (2) fix the rates of basic pay of such officers and 1 " (8) shall have power, subject to the limitations of 2 employees in accordance with the provisions of chapter 2 section 868 of title 31, or as otherwise specifically pro- 3 51 and subchapter III of chapter 53 of title 5, relating 3 vided in this chapter- 4 to classification and General Schedule pay rates. 4 " (A) to borrow money, and to make and issue 5 "§ 2126. Powers 5 bonds, to carry out the purposes of this chapter, in an 6 "Except as otherwise specifically provided in this chap- 6 aggregate amount not exceeding $20,000,000,000 7 ter, the Authority- 7 outstanding at any one time; 8 " (1) shall have succession in its corporate name; 8 " (B) to make and issue such bonds as the 9 " (2) may sue and be sued in its corporate name in 9 Authority may from time to time determine to issue 10 the manner provided by section 507 of title 28; 10 for the purpose of refunding bonds previously issued 11 " (3) may adopt and use a corporate seal, which 11 by the Authority; 12 shall be judicially noticed; 12 " (C) to secure the payment of all bonds or any 13 " (4) may adopt, amend, and repeal bylaws; 13 part thereof, and the rights of the holders thereof, by 14 " (5) may acquire, hold, and use any property, real, 14 pledge, mortgage, or deed of trust of any property, 15 personal, or mixed, tangible or intangible, or any interest 15 revenues, rentals, or receipts; and 16 therein, which it finds necessary for carrying out its 16 " (D) to make such agreements with the pur- 17 17 purposes; chasers or holders of such bonds or with others in 18 " (6) may lease, sell, or encumber any property of 18 connection with any such bonds, whether issued or 19 the Authority as it may find necessary in order to carry 19 to be issued, as the Authority shall deem advisable; 20 out the purposes of the Authority; 20 " (9) may make contracts in its corporate name 21 " (7) may obtain services of experts and consultants 21 and execute all instruments necessary or advisable for the 22 in accordance with section 3109 of title 5 at rates of 22 carrying on of its business; 23 compensation not in excess of the per diem equivalent of 23 " (10) may enter into such agreements, contracts, 24 the rate prescribed for level V of the Executive 24 leases, or other arrangements with the United States or 25 Schedule; 32 33 1 any agency thereof, as may be appropriate in carrying 1 to the Department, together with all funds appropriated 2 out the purposes of this chapter; 2 or allocated therefor; 3 (11) may convey or dispose of property of the 3 (5) all leases, contracts therefor, and rental agree- 4 Authority, by deed, lease, or otherwise, and encumber 4 ments made by the Department; and 5 the same, for the purposes of this chapter; and 5 " (6) all real property under the administration of 6 " (12) shall have such other powers and may per- 6 the Department, substantially all of which is used by the 7 form such other acts as it deems necessary or appropriate 7 Department and which the Postmaster General deter- 8 to carry out the purposes of the Authority. 8 mines to be in excess of the needs of the Department. 9 "§ 2127. Transfers of property 9 " (b) All real property and equipment, and all interests 10 " (a) Within one year after the Authority is established, 10 therein, acquired by the Department after the establishment 11 or at such other time as may be approved by the Authority, 11 of the Authority shall be transferred to the Authority as of 12 the Postmaster General, on behalf of the United States, shall 12 the date of acquisition. All real property of the United States 13 transfer to the Authority the following property: 13 under the administration of the Postmaster General which is 14 " (1) the mail equipment shops located in Wash- 14 being improved or renovated by the Department at the time 15 ington, District of Columbia; 15 of the establishment of the Authority shall be transferred to 16 " (2) all equipment of the Department; 16 the Authority upon completion of the improvement or 17 " (3) the unobligated balance of appropriations in 17 renovation. 18 the site acquisition account of the Department; 18 " (c) There may be excluded from transfer under this 19 " (4) all real property, and all interests therein, 19 section such property, or interests therein, and such funds, 20 whose ownership was acquired by the Postmaster Gen- 20 as the Administrator shall determine would not be useful to 21 eral pursuant to section 2103 (prior to repeal of such 21 the carrying out of the functions of the Authority. 22 section) of this title or which is under the administration 22 "§ 2128. Leases 23 of the Department for the purpose of constructing a 23 "The Authority shall lease to the Department such real 24 postal building from funds appropriated or transferred H.R. 4-5 35 34 1 and personal property owned by the Authority as may be 1 " (1) shall be in such forms and denominations; 2 needed by the Department at rentals which shall be estab- 2 " (2) shall be sold at such times and in such 3 lished, with respect to each item of property SO leased, in an 3 amounts; 4 4 amount equal to the aggregate of— " (3) shall mature at such time or times not more 5 " (1) the amount necessary to amortize the adjusted 5 than fifty years from their respective dates; 6 cost of the leased property over the estimated period 6 " (4) shall be sold at such prices; 7 of useful life of the property; and 7 " (5) shall bear such rates of interest; 8 " (2) the amount necessary to reimburse the Au- 8 " (6) may be redeemable before maturity at the 9 9 thority for the cost of the interest on its bonds, and option of the Authority in such manner and at such times 10 for its other expenses, which are allocable to such 10 and redemption premiums as the Authority shall deter- 11 11 property, mine; 12 12 as shown on the books of the Authority. (7) may be entitled to such relative priorities of 13 13 "§ 2129. Bonds claim on the assets of the Authority with respect to prin- 14 14 " (a) Bonds issued by the Authority under this chapter cipal and interest payments as the Authority shall deter- 15 15 shall be negotiable instruments unless otherwise specified mine; and 16 16 therein. Such bonds shall pledge the full faith and credit of " (8) shall be subject to such other terms and con- 17 17 the Authority, but shall not be obligations of, nor shall pay- ditions, 18 18 ment of the principal thereof or interest thereon be guaran- as the Authority may determine. 19 19 teed by, the United States. The proceeds realized by the " (c) (1) At least fifteen days before selling each issue of 20 Authority from issuance of bonds and from other sources 20 bonds hereunder the Authority shall advise the Secretary 21 shall not be subject to apportionment under the provisions 21 of the Treasury as to the amount, proposed date of sale, 22 of section 3679 of the Revised Statutes, as amended (31 22 maturities, terms, and conditions, and expected rates of in- 23 U.S.C. 665) 23 terest of the proposed issue in the maximum possible detail 24 " (b) Bonds issued by the Authority under this 24 and, upon request of the Secretary, shall consult with him or 25 chapter- 25 his designee thereon. The Authority is not required to obtain 36 37 1 the approval of the Secretary or his designee with respect to 1 concerning the issuance of any bonds which the Secretary has 2 any of the above matters other than the time of issuance of 2 failed to approve, the Authority may nevertheless proceed to 3 the bonds and the maximum rates of interest thereon. 3 sell such bonds on any date thereafter without approval by 4 (2) If the Secretary does not approve the time of 4 the Secretary in amount sufficient to retire the interim obliga- 5 issuance and the maximum rates of interest for a proposed 5 tions issued to him and such interim obligations shall be 6 issue of bonds within seven working days following the date 6 retired from the proceeds of such bonds. 7 on which he is advised of the proposed sale, the Authority 7 " (6) For the purpose of any purchase of the Author- 8 may issue to the Secretary interim obligations in the amount 8 ity's obligations the Secretary of the Treasury is authorized 9 of the proposed issue, which the Secretary is directed to 9 to use as a public debt transaction the proceeds from the sale 10 purchase. 10 of any securities issued under the applicable provisions of 11 " (3) If the Authority determines that a proposed issue 11 chapter 12 of title 31, and the purposes for which securities 12 of bonds hereunder cannot be sold on reasonable terms, the 12 may be issued under such chapter are extended to include 13 Authority may issue to the Secretary interim obligations 13 any purchase of the obligations of the Authority hereunder. 14 which the Secretary is authorized to purchase. 14 " (d) The Authority may- 15 " (4) Notwithstanding the foregoing provisions of this 15 " (1) sell bonds by negotiation or on the basis of 16 subsection, not more than $500,000,000 in obligations issued 16 competitive bids, subject to the right, if reserved, to 17 by the Authority to the Secretary shall be outstanding at any 17 reject all bids; 18 one time. The obligations shall mature on or before one year 18 " (2) designate trustees, registrars, and paying 19 from date of issue, and shall bear interest equal to the 19 agents in connection with said bonds and the issuance 20 average rate (rounded to the nearest one-eighth of a percent) 20 thereof; 21 on outstanding marketable obligations of the United States 21 " (3) arrange, with the consent of the Comptroller 22 with maturities from dates of issue of one year or less as of the 22 General of the United States, for audits of its accounts 23 close of the month preceding the issuance of the obligations 23 and for reports concerning its financial condition and 24 of the Authority. 24 operations by certified public accounting firms (which 25 " (5) If agreement is not reached within eight months 39 38 1 taxation now or hereafter imposed by any State or local 1 audits and reports shall be in addition to those required 2 taxing authority except estate, inheritance, and gift taxes. 2 by sections 850 and 851 of title 31) ; and 3 "§ 2130. Accounts 3 " (4) subject to any covenants contained in any 4 "The General Accounting Office, in the settlement of the 4 agreements entered into with the purchasers or holders 5 of its bonds, invest the proceeds from the sale of bonds 5 accounts of the accountable officer or employee of the Au- 6 and other funds under its control in any securities ap- 6 thority, shall not disallow credit for, nor withhold funds proved for investment of national bank funds and de- 7 because of, any expenditure in any case in which the Au- 7 posit said proceeds and other funds, subject to with- 8 thority determines the expenditure is necessary to honor 8 drawal by check or otherwise, in accordance with 9 the pledge of its full faith and credit in any bonds, or is 9 10 section 867 of title 31. 10 necessary to maintain their marketability. " (e) Bonds issued by the Authority hereunder shall 11 "§ 2131. Protection of public moneys and property 11 12 12 contain a recital that they are issued pursuant to this chap- "General statutes for the protection of public moneys or 13 ter, and such recital shall be conclusive evidence of the 13 property of the United States shall apply to the moneys and 14 regularity of the issuance and sale of such bonds and of 14 property of the Authority and to moneys and properties of 15 the United States entrusted to the Authority." 15 their validity. 16 (f) Bonds issued by the Authority hereunder shall be (b) The table of contents of part II of title 39, United 16 17 lawful investments and may be accepted as security for all 17 States Code, is amended by striking out- "23. Property 2101" 18 fiduciary, trust, and public funds, the investment or deposit 18 and inserting in lieu thereof- 19 of which shall be under the authority or control of any officer "23. Property and Postal Modernization 2101". 20 or agency of the United States. The Secretary of the Treasury 19 SEC. 402. Section 5315 of title 5, United States Code, 21 or any other officer or agency having authority over or con- 20 is amended by adding at the end thereof the following new 22 trol of any such fiduciary, trust, or public funds, may at any 21 clause: 23 time sell any of the bonds of the Authority acquired by them 22 " (90) Executive Director of the Postal Modernization 24 under this section. Bonds issued by the Authority hereunder 23 Authority.". 25 shall be exempt both as to principal and interest from all 40 41 1 SEC. 403. (a) Section 101 of the Government Corpora- 1 the Authority at such time or times, in such manner, and 2 tion Control Act (31 U.S.C. 846) is amended by inserting 2 with such further measures and dispositions as the Admin- 3 "Postal Modernization Authority;" immediately after "Pan- 3 istrator shall direct in order to effectuate the transfers re- 4 ama Canal Company;". 4 ferred to in this section and to carry out the purposes of this 5 (b) Section 105 of such Act (31 U.S.C. 850) is 5 title. Personnel transferred in accordance with this subsection 6 amended by inserting before the period at the end of the 6 shall be employed by the Authority without break in service 7 first sentence the following phrase: "or the powers reserved 7 or loss of, or reduction in, status, tenure, seniority, pay, 8 to the Postal Modernization Authority under section 2130 8 leave, or any other employee benefits incident to their em- 9 of title 39, United States Code". 9 ployment immediately prior to such transfer. 10 SEC. 404. (a) There are hereby transferred to the Postal 10 (c) The incorporation of the Postal Modernization Au- 11 Modernization Authority established under section 2122 of 11 thority established by section 2122 of title 39, United States 12 title 39, United States Code, as added by section 401 of this 12 Code, shall be held to have been effected on the effective 13 title, the following functions of the Postmaster General: 13 date of this title. 14 (1) the acquisition, modernization, improvement, 14 SEC. 405. If any provision of this title, or the applica- 15 and disposition of real property and equipment; 15 tion of such provision, shall be held invalid, the remainder 16 (2) the conduct of research, engineering, and de- 16 of this title, or the application of such provision in any con- 17 velopment studies and programs; and 17 nection other than that as to which it is held invalid, shall not 18 (3) the making of studies for and the developing of 18 be affected thereby. 19 long-range plans for improved postal service. 19 TITLE V-COMMISSION ON POSTAL FINANCE 20 (b) So much of the personnel, property, records, and 20 ESTABLISHMENT OF COMMISSION 21 unexpended balances of appropriations, allocations, and other 21 SEC. 501. Part II of title 39, United States Code, is 22 funds employed, used, held, available, or to be made avail- 22 amended by adding at the end thereof the following new 23 able in connection with functions transferred by this section 23 chapter: 24 as the Administrator shall determine shall be transferred to H.R. 4-6 42 43 1 "Chapter 33.-COMMISSION ON POSTAL FINANCE 1 close of December 31, 1970, except that, if any appointment "Sec. 2 to membership on the Commission is made after the begin- "2601. Establishment of Commission on Postal Finance. "2602. Membership of Commission. 3 ning and before the close of such period, the term of office "2603. Personnel of Commission. "2604. Use of United States mails by Commission. "2605. Administrative support services for Commission. 4 based on such appointment shall be for the remainder of "2606. Function of Commission. 5 "2607. Report of Commission to the President. such period. "2608. Recommendations of the President. "2609. Effective dates of recommendations of the President. 6 " (c) After December 31, 1970, persons shall be "2610. Effect of recommendations of the President on existing law and prior Presidential recommendations. 7 appointed as members of the Commission with respect to "2611. Publication of recommendations of the President. "2612. Effect of this chapter on other laws. 8 each period of eighteen months which commences on the 2 "§ 2601. Establishment of Commission on Postal Finance 9 first day of the thirty-first month following the immediately 3 "There is established a Commission on Postal Finance, 10 preceding period of eighteen months for which persons 4 referred to in this chapter as the 'Commission'. 11 were appointed as members of the Commission. The terms 5 "§ 2602. Membership of Commission 12 of office of persons SO appointed shall be for the eighteen- 6 " (a) The Commission shall be composed of eleven mem- 13 month period with respect to which the appointment is 7 bers, who shall be appointed from private life as follows: 14 made, except that, if any appointment is made after the 8 " (1) five appointed by the President of the United 15 beginning and before the close of any such period, the term 9 States; 16 of office based on such appointment shall be for the remainder 10 " (2) three appointed by the Speaker of the House 17 of such period. 11 of Representatives; and 18 " (d) A vacancy in the membership of the Commission 12 " (3) three appointed by the President pro tempore 19 shall be filled in the manner in which the original appoint- 13 of the Senate. 20 ment was made. 14 One of the members shall be designated as Chairman by the 21 " (e) Each member of the Commission who is not an 15 President. 22 officer or employee of the Federal Government shall be 16 " (b) The terms of office of persons first appointed as 23 paid at the rate of $200 for each day such member is en- 17 members of the Commission shall be for the period of eight- 24 gaged upon the work of the Commission, and shall be 18 een months beginning July 1, 1969, and ending at the 25 allowed travel expenses, including a per diem allowance, in 44 45 1 accordance with section 5703 (b) of title 5, United States 1 of eighteen months referred to in subsection (b) or (c) of 2 Code, when engaged in the performance of services for the 2 section 2602 of this title, any of the personnel of such depart- 3 Commission. 3 ment, agency, or establishment to assist the Commission 4 "§ 2603. Personnel of Commission 4 in carrying out its function. 5 " (a) Without regard to the provisions of title 5, United 5 "§ 2604. Use of United States mails by Commission 6 States Code, governing appointments in the competitive 6 "The Commission may use the United States mails in the 7 service, and the provisions of chapter 51 and subchapter III 7 same manner and upon the same conditions as other depart- 8 of chapter 53 of such title, relating to classification and Gen- 8 ments and agencies of the United States. 9 éral Schedule pay rates, and on a temporary basis for periods 9 "§ 2605. Administrative support services for Commission 10 covering all or part of any period of eighteen months re- 10 "The Administrator of General Services shall provide 11 ferred to in subsection (b) or (c) of section 2602 of this 11 administrative support services for the Commission on a 12 title 12 reimbursable basis. 13 " (1) the Commission is authorized to appoint an 13 "§ 2606. Function of Commission 14 Executive Director and fix his basic pay at the rate 14 "The Commission shall conduct, in each of the respec- 15 provided for level IV of the Executive Schedule; and 15 tive periods of eighteen months referred to in subsection (b) 16 " (2) with the approval of the Commission, the 16 and (c) of section 2702 of this title, a review of- 17 Executive Director is authorized to appoint and fix the 17 " (1) all postage rates, charges, and fees on all 18 basic pay (at respective rates not in excess of the maxi- 18 classes, types, and kinds of mail matter, classifications of 19 mum rate paid under the General Schedule) of such 19 articles mailable, postal zone structures and methods 20 additional personnel as may be necessary to carry out 20 used in establishing such structures, and other conditions 21 the function of the Commission. 21 of mailability, provided for by this title; 22 " (b) Upon the request of the Commission, the head of 22 " (2) all other charges and fees established by the 23 any department, agency, or establishment of any branch of 23 Department: 24 the Federal Government is authorized to detail, on a reim- 24 " (3) the postal policy contained in chapter 27 of 25 bursable basis, for periods covering all or part of any period H.R. 4-7 46 47 1 this title, including, among other matters, the identifica- 1 ance of such services after excluding the public service 2 cation of public services, the determination of the costs 2 costs in accordance with chapter 27 of this title; 3 thereof, and the extent to which such policy, identifica- 3 " (B) a system of cost ascertainment. and of allo- 4 tion of services, and determination of costs are consistent 4 cation or apportionment of costs among the various 5 with the public interest; 5 classes and categories of mail and the services performed 6 " (4) the cost ascertainment system of the Depart- 6 by the Department, that is consistent with the best busi- 7 ment including, among other matters, the methods used 7 ness accounting practices, is fully responsive to the needs 8 to determine costs and to allocate such costs among the 8 of management, and is the basis for a sound and equitable 9 various classes and categories of mail and the services 9 postal rate structure; 10 performed by the Department and 10 " (C) identification of public services and the deter- 11 " (5) the authority, function, operation, and admin- 11 mination of costs thereof on a current basis, in the light 12 istration of the Postal Modernization Authority estab- 12 of the responsibility of the Department to furnish postal 13 lished by chapter 23 of this title including, among other 13 service to the public, the value of such service to both 14 matters, the adequacy of capital funds available for mod- 14 mailers and addressees, and the relationship of postal 15 ernization of postal facilities and the effectiveness of the 15 revenues and expenses; and 16 Authority in providing the modern and efficient build- 16 " (D) such changes in the authority, functions, 17 ings, machinery, and equipment required to serve the 17 management, and operation of the Postal Moderniza- 18 postal needs of the public. 18 tion Authority established by chapter 33 of this title as 19 Such review by the Commission shall be made for the pur- 19 will facilitate the achievement of its purpose to supply 20 pose of providing- 1 20 and maintain, for the postal establishment, the modern 21 " (A) a comprehensive system of rates, charges, 21 buildings, machinery, and equipment needed for effi- 22 and fees for services performed by the postal establish- 22 cient and economical service to the public. 23 ment that is consistent with the economic, cultural, and 23 "§ 2607. Report of Commission to the President 24 social interests of the Nation and the general public 24 "The Commission shall submit to the President a report 25 welfare and recovers total costs incurred in the perform- 48 49 1 of the results of each review conducted by the Commission, 1 date of transmittal of such recommendations by the President 2 together with its recommendations. Each such report shall be 2 to the Congress- 3 submitted not later than the close of the period of eighteen 3 " (1) there has not been enacted into law a statute 4 months with respect to which the then incumbent members 4 which modifies, supersedes, or otherwise renders in- 5 of the Commission were appointed. 5 applicable all or part of such recommendations; 6 "§ 2608. Recommendations of the President 6 " (2) neither House of the Congress has, by bill or 7 "The President shall transmit to the Congress, not later 7 resolution, disapproved such recommendations; or 8 than the ninetieth day following the close of each period 8 (3) both. 9 of eighteen months referred to in section 2607 of this title, 9 "§ 2610. Effect of recommendations of the President on 10 his recommendations with respect to matters within the 10 existing law and prior Presidential recom- 11 purview of subparagraphs (1), (3), and (5) of section 11 mendations 12 2606 of this title. The President may transmit to the Post- 12 "The recommendations of the President which become 13 master General such directions as the President deems appro- 13 effective under this chapter shall be held and considered to 14 priate with respect to matters within the purview of subpara- 14 modify, supersede, or render inapplicable, as the case may be, 15 graphs (2) and (4) of section 2606 of this title, and such 15 to the extent inconsistent therewith- 16 recommendations shall be placed in effect by the Postmaster 16 " (1) all provisions of law enacted prior to the date 17 General as directed by the President. 17 the President transmitted such recommendations to the 18 "§ 2609. Effective dates of recommendations of the Presi- 18 Congress pursuant to section 2708 of this title; and 19 dent 19 " (2) any prior recommendations of the President 20 "The recommendations of the President transmitted to 20 which shall have taken effect under this chapter. 21 the Congress in accordance with section 2608 of this title 21 "§ 2611. Publication of recommendations of the President 22 shall become effective on such date or dates as the President 22 "The recommendations of the President which take 23 may prescribe in the recommendations, but such recom- 23 effect pursuant to section 2609 of this title shall be printed 24 mendations shall become effective only if, within the period 24 in the Statutes at Large in the same volume as public laws 25 of one hundred and twenty days immediately following the 50 51 1 and shall be printed in the Federal Register and included 1 " (1) the unexpended balances of all appropriations 2 in the Code of Federal Regulations. 2 made to the Post Office Department; 3 "§ 2612. Effect of this chapter on other laws 3 " (2) any other unexpended balance of the Post 4 "This chapter does not preclude changes in postal rates, 4 Office Department Fund established under former sec- 5 charges, and fees by, or pursuant to, laws (other than this 5 tion 2202 of this title; 6 chapter) in force on, or enacted after, the effective date of 6 " (3) all revenue of the Department; 7 this chapter." 7 " (4) payments received by the Department from 8 TITLE VI-POST OFFICE DEPARTMENT 8 the following sources: 9 OPERATING FUND 9 " (A) payments for damage to Government- 10 SEC. 601. (a) Chapter 25 of title 39, United States 10 owned vehicles operated by the Department, 11 Code, is amended by inserting after section 2212 the fol- 11 " (B) payments for the sale of leather, metal, 12 lowing: 12 canvas cuttings, and old canvas resulting from the 13 "POST OFFICE DEPARTMENT OPERATING FUND 13 manufacture and repair of mail bags and locks, 14 "§ 2221. Definition 14 " (C) payments for damage to Government- 15 "As used in this chapter, 'Fund' means the Post Office 15 owned personal property under custody and control 16 Department Operating Fund established by section 2222 16 of the Department, 17 of this title. 17 " (D) payments made by contractors for serv- 18 "§ 2222. Establishment 18 ices performed for them by postal personnel, and 19 "The Post Office Department Operating Fund is estab- 19 " (E) payments of fines, penalties, and refunds 20 lished in the Treasury of the United States as a separate fund 20 resulting from nonperformance or inadequate per- 21 subject to withdrawal by check by the Postmaster General. 21 formance of carriers and contractors; 22 22 There shall be deposited in the Fund the following items, " (5) payments and reimbursements made by other 23 23 except to the extent all or any part thereof is transferred to departments and agencies of the Government for services 24 24 the Postal Modernization Authority established by chapter performed by the Department for such other depart- 25 25 23 of this title: ments and agencies; 52 53 1 " (6) funds appropriated to the Department in 1 " (6) expenditures which, except for the provisions accordance with law; 2 2 of this chapter, would be paid out of the postal revenue or 3 " (7) receipts from subleases of property under sec- 3 the revenue of the Department. tion 2117 of this chapter; and 4 4 " (b) Moneys deposited in the Fund shall remain avail- 5 " (8) any funds which, except for the provisions of 5 able for expenditure without limitation as to time and are not 6 this chapter and chapter 23 of this title, would be 6 subject to apportionment under section 665 of title 31 (Rev. 7 credited to appropriations made to the Department. 7 Stat. 3679, as amended) 8 "§ 2223. Use of Fund 8 " (c) From time to time the Postmaster General shall 9 " (a) The Postmaster General shall use the moneys in 9 deposit in the general fund of the Treasury of the United 10 the Fund to pay all of the expenses and costs of the adminis- 10 States as miscellaneous receipts those balances in the Fund 11 tration and operation of the Department, including, but not 11 which he determines to be in excess of the amount required 12 limited to- 12 for the operation and administration of the Department. 13 13 " (1) as they become due and payable, all obliga- "§ 2224. Authorization of appropriations to Fund 14 tions chargeable to balances of appropriations deposited 14 "There are hereby authorized to be appropriated to the 15 in the Fund; 15 Fund- 16 " (2) salaries, wages, and related retirement and 16 " (1) amounts equal to the amounts of the costs of 17 other employee benefit contributions; 17 public services determined in accordance with the postal 18 " (3) rentals in accordance with section 2128 of this 18 policy contained in chapter 27 of this title, and 19 title; 19 " (2) amounts equal to the amounts by which the 20 " (4) indemnities for the loss or damage to regis- 20 expenses of the operation and administration of the de- 21 tered, insured, and collect-on-delivery mail, and the ex- 21 partmental service and the postal field service exceed 22 pense of manufacturing embossed stamped envelopes, 22 the amounts available in the Fund for the payment of 23 printed or unprinted; 23 such expenses.". 24 " (5) the face value of money orders issued; and 54 55 1 (b) Chapter 25 of title 39, United States Code, is 1 "Chapter 47.-EMPLOYEE-LABOR MANAGEMENT 2 amended— 2 RELATIONS 3 (1) by repealing sections 2201 through 2204, sec- "Sec. "3701. Declaration of policy. 4 tions 2231 through 2234, and the center heading "3702. Definitions. "3703. Recognition of labor organizations. 5 "Postal Modernization Fund" appearing immediately be- "3704. Saving provision-prior agreements. "3705. Dues checkoff. "3706. Standards of conduct for labor organizations. 6 fore section 2231, and "3707. Code of Fair Labor Practices. "3708. Labor-management disputes. 7 (2) by amending the table of contents to read as "3709. Creation of Postal Labor-Management Relations Panel. "3710. Powers and duties of Panel. 8 follows: "3711. Settlement of grievances. "3712. Violations and enforcement. 9 "Chapter 25.-FUNDS AND ACCOUNTING "3713. Separability of provisions. 10 "GENERAL 3 "§ 3701. Declaration of policy "Sec. 4 " (a) Participation of postal employees, through labor "2205. Date of orders, entries, contracts. "2206. Audit by General Accounting Office. 5 organizations, with management in decisions which affect "2207. Administrative accounting. "2208. System of accounting and control. 6 them contributes to the effective conduct of the business of "2209. Responsibility of postmasters. "2210. Withholding compensation of postmasters. "2211. Administrative examination of accounts. 7 the Post Office Department. Therefore, strong, democrati- "2212. Continuance of disbursing officer's accounts and issuance of checks. 8 cally administered labor organizations are in the public inter- 11 "POST OFFICE DEPARTMENT OPERATING FUND 9 est and their development should be encouraged. "2221. Definition. "2222. Establishment. 10 " (b) The right of labor organizations to organize em- "2223. Use of Fund. "2224. Authorization of appropriations to Fund.". 11 ployees of the Department, and to bargain collectively, and 12 TITLE VII-EMPLOYEE-MANAGEMENT 12 to present grievances on their behalf without restraint, 13 RELATIONS 13 coercion, interference, intimidation, or reprisal is recognized 14 SEC. 701. Part III of title 39, United States Code, is 14 and encouraged. 15 amended by adding at the end thereof the following new 15 "§ 3702. Definitions 16 chapters: 16 "As used in this chapter- 56 57 1 " 'employee' means any employee in the postal field 1 'dispute' includes any controversy concerning 2 service; 2 terms, tenure, or conditions of employment, or concern- 3 " 'labor organization' means any national union of 3 ing the association or representative of persons in nego- 4 postal employees and its affiliates, composed of employees 4 tiating, fixing, maintaining, changing, or seeking to 5 of the Department, in which employees participate and 5 arrange terms or conditions of employment, regardless 6 pay dues, and which has, as one of its basic and central 6 of whether the disputants stand in the proximate rela- 7 purposes, dealing with management of the Department 7 tion of employer and employee; 8 concerning terms and conditions of employment, but 8 "grievance" means any cause for dissatisfaction 9 shall not include (1) any organization whose basic 9 outside an employee's control if the matter arises out of 10 purpose is purely social, fraternal, or limited to special 10 employment in the postal field service and the remedy 11 interest objectives which are only incidentally related 11 sought is within the authority of the Department, in- 12 to terms and conditions of employment, (2) any orga- 12 cluding, but not limited to, adverse actions, complaints 13 nization which by ritualistic practice, constitution, or 13 of discrimination, any other complaint by any employee 14 bylaws proscription, by tacit agreement among its mem- 14 against the Department concerning the effect, interpre- 15 bers or otherwise, denies membership because of race, 15 tation, or application of a collective bargaining agree- 16 color, religion, national origin, sex, age, or preferential 16 ment, and any violation of any law, rule, or regulation 17 or nonpreferential civil service status, or (3) any orga- 17 governing conditions of employment which the Depart- 18 nization sponsored by the Department or by any agency, 18 ment has the authority to correct; 19 activity, or organization of the Federal Government; 19 " 'adverse action' means any action which results 20 " 'representative' means any representative of a 20 in (1) any suspension for any reason of an employee 21 labor organization, whether an employee or nonem- 21 from his job, (2) any discharge from employment, (3) 22 ployee of the Department; 22 any furlough without pay, (4) any reduction in rank or 23 'agreement' means any collective-bargaining 23 compensation, including those which are taken at the 24 agreement negotiated pursuant to the provisions of this 24 election of the Department after a classification decision 25 chapter; 25 by either the United States Civil Service Commission or 58 59 1 the Department, and (5) any withholding of a salary 1 " 'unit' means craft of postal employees for the pur- 2 step increase; 2 poses of recognition and representation; and 3 "conditions of employment' includes, but is not 3 " 'craft' means each of the following groups of 4 limited to, such factors as seniority, working conditions 4 employees: 5 and environment, work schedules, work procedures, 5 " (1) postal clerks. 6 automation, safety, transfers, job classifications, details, 6 " (2) city letter carriers. 7 promotion procedures, demotions, assignments and re- 7 " (3) mail handlers. 8 assignments, job security, disciplinary actions and ap- 8 " (4) motor vehicle and motor vehicle mainte- 9 peals, in-service training, labor-management relation- 9 nance employees. 10 ship, methods of adjusting grievances, granting of leave, 10 " (5) rural letter carriers. 11 and such other matters as may be specified by law, rule, 11 " (6) special delivery messengers. 12 regulation, or agreement negotiated pursuant to this 12 " (7) maintenance employees. 13 chapter; 13 "§ 3703. Recognition of labor organizations 14 " 'consultation' means the obtaining and/or enter- 14 " (a) Any labor organization shall be granted exclusive 15 taining by management of views from designated repre- 15 recognition within a unit by submitting to the Department 16 sentatives of the labor organizations relative to formulat- 16 a verifiable certified membership list of more than 50 per 17 ing, changing, or implementing policies, practices, and 17 centum of the total number of employees within the unit. 18 working conditions and considering those views, includ- 18 However, if one or more labor organizations submit a 19 ing objections or suggestions, before final action is taken. 19 verifiable certified membership list of not more than 50 20 Such consultation shall permit sufficient time for the 20 per centum and not less than 30 per centum of the total 21 representatives of the labor organizations to present 21 number of employees within the craft, a secret national ballot 22 formal agreement or objection to management and the 22 election shall be scheduled within a period of sixty days 23 reasons for such agreement or objection. If any objec- 23 from date of submission. 24 tions are made, they must receive full consideration 24 " (b) The right of a labor organization to selection as 25 before final action is taken; 60 61 1 the exclusive craft representative on a national basis where 1 " (d) Recognition of a labor organization shall continue 2 an election is necessary shall be decided by a national secret 2 unless withdrawn pursuant to the provisions of this chapter. 3 ballot election with the right of such selection being awarded 3 The Department shall not determine whether a labor orga- 4 to the labor organization receiving a majority of valid votes 4 nization shall become or continue to be recognized as exclu- 5 cast in the election. If no labor organization secures a ma- 5 sive representative of the employees in any unit within 6 jority of all valid votes cast but a majority of all votes cast 6 twenty-four months after a determination of exclusive status, 7 are for representation by some labor organization, then a run- 7 or while an agreement is in effect with respect to such unit. 8 off election shall be held within sixty days thereafter, be- 8 '(e) No unit shall be established for purposes of ex- 9 tween the two labor organizations securing the largest num- 9 clusive recognition which includes any Department official 10 ber of votes, to determine the labor organization which has 10 who has primarily executive, managerial, or policymaking 11 achieved exclusive recognition. The election shall be con- 11 responsibilities or any supervisor who officially and regularly 12 ducted by the Department of Labor under rules and regula- 12 evaluates the performance of employees. 13 tions promulgated by the Secretary of Labor. Any dispute 13 (f) When a labor organization has been recognized 14 or disagreement as to eligibility of a labor organization or 14 as the exclusive craft representative of employees of an 15 an employee to participate in the selection of an exclusive 15 appropriate unit, it shall be entitled to act for and to nego- 16 craft representative shall be resolved by the Department of 16 tiate agreements covering all employees in the unit at the 17 Labor pursuant to regulations established by the Secretary 17 national and local installation levels and it shall be respon- 18 of Labor. Such regulations shall include provision for binding 18 sible for representing the interests of all such employees. 19 arbitration of any such dispute or disagreement. 19 Such a labor organization shall have the right to participate 20 (c) The Department shall accord exclusive recogni- 20 with management in the formulation, implementation, and 21 tion on a national craft basis to a labor organization which 21 modification of personnel policies and practices, and all other 22 has been selected under subsection (b) of this section. Such 22 matters affecting the conditions of employment of employees 23 national exclusive recognition shall be accorded to such labor 23 in the unit. The Department and such labor organization, 24 organization and the affiliates thereof at installation, regional, 24 through appropriate officials and representatives, shall me 25 and other levels within the Department. 62 63 1 at reasonable times for the purposes of consultation as de- 1 than one year or beyond the termination date of the ap- 2 fined in this chapter. The Department and the recognized 2 plicable collective agreement, whichever occurs sooner. 3 labor organization shall be required to negotiate in good 3 "§ 3706. Standards of conduct for labor organizations 4 faith for the purpose of arriving at an agreement at any 4 "The Department will not accord exclusive recognition 5 level. Such obligation to bargain shall include the determina- 5 to any labor organization unless the labor organization is 6 tion of appropriate bargaining techniques and the inclusion 6 subject to governing requirements adopted by the labor 7 of any understanding reached by the parties in a written 7 organization containing explicit and detailed provisions to 8 agreement. In exercising authority to make rules and regula- 8 which it subscribes, providing for- 9 tions relating to personnel policies and practices or to work- 9 " (1) the maintenance of democratic procedures 10 ing conditions, the Department may not make rules or regu- 10 and practices, including provisions for periodic elections 11 lations which are in conflict with any agreements negotiated 11 to be conducted subject to recognized safeguards and 12 under this chapter. 12 provisions defining and securing the right of individual 13 "§ 3704. Saving provision-prior agreements 13 members to participation in the affairs of the labor 14 "Nothing in this chapter shall nullify any provisions of 14 organization, to fair and equal treatment under the 15 any agreement in effect on the effective date of this Act 15 governing rules of the organization, and to fair process 16 between the Department and any labor organization, except 16 in disciplinary proceedings; 17 as hereafter may be agreed to by the parties thereto, until 17 " (2) the exclusion from office in the labor organi- 18 superseded by an agreement made pursuant to this chapter. 18 zation of persons affiliated with Communist or other 19 "§ 3705. Dues check-off 19 totalitarian movements; 20 "Where the Department has received from any em- 20 " (3) the prohibition of business or financial in- 21 ployee a written assignment which authorizes the Depart- 21 terests on the part of labor organization officers and 22 ment to deduct from the wages of such employee money for 22 agents which conflict with their duty to the organization 23 the payment of membership dues in a labor organization, 23 and its members; and 24 such assignment shall be honored, except that any such 24 " (4) the maintenance of fiscal integrity in the 25 assignment shall not be irrevocable for a period of more 25 conduct of the affairs of the labor organization, including 64 65 1 provision for accounting and financial controls and regu- 1 in good faith with a labor organization as required by 2 lar financial reports or summaries to be made available 2 this chapter. 3 to members. 3 " (b) The labor organization is prohibited from- 4 "§ 3707. Code of Fair Labor Practices 4 " (1) interfering with, restraining, or coercing any 5 " (a) The Department is prohibited from- 5 employee in the exercise of the rights assured by this 6 " (1) interfering with, restraining, or coercing any 6 chapter; 7 employee in the exercise of the rights assured by this 7 " (2) attempting to induce postal management to 8 chapter; 8 coerce any employee in the enjoyment of his rights 9 " (2) encouraging or discouraging membership in 9 under this chapter; 10 any labor organization by discrimination in regard to 10 " (3) coercing or attempting to coerce, or disciplin- 11 hiring, tenure, promotion, or other conditions of em- 11 ing any member of the organization as punishment or 12 ployment; 12 reprisal for, or for the purpose of hindering or impeding 13 " (3) sponsoring, controlling, or otherwise assisting 13 his discharge of his duties owed as an officer or employee 14 any employee organization, except that the Department 14 of the Department; and 15 may furnish customary and routine services and facili- 15 " (4) discriminating against any employee with 16 ties; 16 regard to the terms or conditions of membership because 17 " (4) disciplining or otherwise discriminating 17 of race, color, creed, sex, age, or national origin. 18 against any employee because he has filed a complaint 18 " (c) A labor organization granted exclusive recogni- 19 or given testimony under this chapter or under the 19 tion shall, upon request, admit to membership in the orga- 20 Standards of Conduct for Labor Organizations or the 20 nization without discrimination any employee in the unit 21 Code of Fair Labor Practices; 21 represented who meets reasonable occupational standards 22 " (5) refusing to accord exclusive recognition to a 22 and pays the required fee and dues. Nothing in this chapter 23 labor organization qualified for such recognition; and 23 shall preclude a labor organization from suspending or ex- 24 " (6) refusing to hear, consult, confer, or negotiate 24 pelling a member, who is an employee in the unit repre- 66 67 1 sented, from the organization, if such action is taken for just 1 the services of the Postal Labor-Management Relations 2 cause and in accordance with procedures under the constitu- 2 Panel hereinafter provided for. 3 tion or bylaws of the labor organization. 3 "§ 3709. Creation of Postal Labor-Management Relations 4 "§ 3708. Labor-management disputes 4 Panel 5 " (a) The Department and any recognized labor orga- 5 " (a) There is created a Postal Labor-Management Rela- 6 nization shall have the right to invoke the provisions of sec- 6 tions Panel (referred to in this chapter as the 'Panel') 7 tion 3710 in respect to any dispute concerning- 7 " (b) The Panel shall be composed of a Chairman and 8 " (1) the application or interpretation of provisions 8 two additional members. The Chairman and the members of 9 of this chapter; 9 the Panel shall be appointed by the President of the United 10 " (2) the terms to be incorporated in an agree- 10 States by and with the advice and consent of the Senate, and 11 ment; 11 shall not be otherwise employed by the Government of the 12 " (3) the interpretation, application, and enforce- 12 United States. 13 ment of the Standards of Conduct for Labor Organiza- 13 " (c) One of the original members of the Panel shall 14 tions and the Code of Fair Labor Practices; and 14 be appointed for a term of one year, one for a term of three 15 " (4) alleged violations of any agreement. 15 years, and one for a term of five years, but their successors 16 " (b) In resolving disputes set forth in subsection (a) 16 shall be appointed for terms of five years each, excepting 17 of this section, the following procedures shall be applicable: 17 that any individual chosen to fill a vacancy shall be appointed 18 " (1) Either party may invoke the services of the 18 only for the unexpired term of the member whom he shall 19 Federal Mediation and Conciliation Service, which shall 19 replace. The President shall designate one member to serve 20 immediately assign one or more of its mediators to work 20 as Chairman of the Panel. Any member of the Panel may 21 with the parties, using every effort to bring the parties 21 be removed by the President, upon notice and hearing, for 22 22 to an agreement. neglect of duty or malfeasance in office, but for no other 23 " (2) If such efforts to bring about a settlement 23 cause. 24 24 " through mediation and conciliation are unsuccessful, then (d) There shall be an Executive Secretary of the 25 25 either party to the controversy is authorized to invoke Panel who shall be appointed by the Panel for a term of 68 69 1 five years. Each member of the Panel and the Executive 1 dial action as the Panel deems advisable. The Postmaster 2 Secretary shall receive a salary equal to level II of the Exec- 2 General shall consider any such recommendation of the 3 utive Schedule and shall be eligible for reappointment and 3 Panel and take such action thereon as he determines to be 4 shall not engage in any other business, vocation, or employ- 4 proper in the light of all of the pertinent facts and circum- 5 ment. The Panel shall have the authority to employ staff, 5 stances, subject to the exercise by any officer or employee 6 including counsel, it deems necessary for the proper perform- 6 of the Department of the right to appeal any determination 7 ance of its duties and to fix their compensation and expenses. 7 of the Postmaster General in accordance wih laws, rules, and 8 "§ 3710. Powers and duties of Panel 8 regulations governing appeals of postal employees from 9 " (a) The Panel shall have authority from time to time 9 adverse personnel actions. 10 to make, amend, and rescind, in the manner prescribed by 10 " (c) For the purpose of any hearings or investigation 11 the Administrative Procedure Act, such rules and regulations 11 provided for in this chapter, the provisions of sections 49 12 as may be necessary to carry out the provisions of this 12 and 50 of title 15, United States Code (relating to the 13 chapter. 13 attendance of witnesses and the production of books, papers, 14 " (b) The Panel shall have authority to investigate 14 and documents) are made applicable to the jurisdiction, 15 15 and resolve any dispute arising under section 3708 of this powers, and duties of the Panel. 16 chapter, and to afford prompt and full relief with respect 16 " (d) Any person who shall wilfully resist, prevent, 17 17 to the issues involved in such dispute. Such relief shall in- impede, or interfere with any member of the Panel or any 18 clude, among other matters, reinstatement to a position, 18 of its agents or agencies or any arbitrator selected pursuant 19 19 restitution of monetary loss, and such other compensatory to this chapter in the performance of duties pursuant to this 20 20 measures as the Panel deems appropriate, with respect to chapter shall be punished by a fine of not more than $5,000 21 21 any employee involved in such dispute. The Panel, upon or by imprisonment for not more than one year, or both. 22 22 its determination that there has been an arbitrary, capricious, " (e) After its services have been invoked, the Panel 23 23 or otherwise knowing violation of this chapter, may recom- or its designee shall assist the parties in arriving at a settle- 24 24 mend that the Postmaster General discipline the offending ment through whatever voluntary methods and procedures 25 25 party by demotion, suspension, removal, or such other reme- it may consider to be appropriate. 70 71 1 " (f) If the Panel is unable to assist the parties in 1 arbitration of a grievance shall notify the labor organization 2 arriving at a settlement through other means, the Panel or its 2 which has exclusive recognition for the employee's craft in 3 designee shall promptly hold hearings at which both parties 3 writing and must receive the written consent of said labor 4 shall be given a full opportunity to present their respective 4 organization in order to have the grievance submitted to 5 cases. 5 arbitration: Provided further, That the labor organization 6. (g) At the conclusion of the hearings, the Panel shall, 6 may initiate grievances and arbitration proceedings on its own 7 with due dispatch, render its decision in writing on the mat- 7 behalf. 8 ters in dispute. This decision shall be promptly served 8 " (c) Grievance procedures shall be established in nego- 9 upon the parties to the proceedings and shall be final and 9 tiations between representatives of labor organizations which 10 binding upon all parties. 10 have achieved exclusive recognition and representatives of 11 " (h) Employees of the Department called upon by 11 the Department. Such procedures shall include, but shall not 12 either party to participate in any phase of the Panel proceed- 12 be restricted to, procedures assuring employees- 13 ings shall be free to do SO without suffering any loss of pay, 13 " (1) the right to be represented by their labor 14 and all such employees shall be free from restraint, coercion, 14 organization; 15 interference, intimidation, or reprisal as a consequence of 15 " (2) fixed and reasonable time limits for a deci- 16 their participation. 16 sion at each grievance step; and 17 "§ 3711. Settlement of grievances 17 " (3) the right to call, question, and cross-examine 18 " (a) Grievances filed under this chapter shall be proc- 18 witnesses. 19 essed as provided in subsections (b), (c), (d), and (e) of 19 " (d) The arbitration procedure shall be as follows: 20 this section. 20 " (1) Any grievance not satisfactorily settled in the 21 " (b) Any employee, or a labor organization which has 21 grievance process shall be subject to arbitration upon 22 achieved exclusive recognition for the craft in which the 22 the written request of the labor organization which has 23 employee is employed, shall have the right to present and 23 achieved exclusive recognition for the craft of the em- 24 process grievances and to submit to arbitration unresolved 24 ployee or employees involved. Such written request 25 grievances: Provided, however, That any employee desiring 72 73 1 shall be directed to the principal administrative officer 1 any loss of pay, and all such employees shall be free from 2 of the Department. 2 restraint, coercion, interference, intimidation, or reprisal 3 " (2) The Department shall within five working 3 as a consequence of their participation. 4 days after receipt of the request for arbitration request 4 "§ 3712. Violations and enforcement 5 the Secretary of Labor to furnish a panel of names of 5 " (a) It shall be unlawful for anyone to violate or re- 6 five arbitrators from which the labor organization and 6 fuse to comply with a decision or order of the Panel rendered 7 the Department shall select an arbitrator, by alternately 7 pursuant to sections 3708 or 3710 of this chapter or of an 8 striking off four names. The name of the person remain- 8 arbitrator rendered pursuant to section 3711 of this chapter. 9 ing on the list shall be arbitrator in that case. 9 " (b) The district courts of the United States, upon 10 " (3) The decision of the arbitrator shall be final 10 petition of an aggrieved party, shall have jurisdiction for 11 and binding. The fee and expenses of the arbitrator and 11 cause shown to restrain any violation of subsection (a) of 12 the general expenses incident to the arbitration shall be 12 this section, to require compliance with any decision or order 13 paid by the Secretary of Labor from an arbitration fund 13 issued under section 3708, 3710, or 3711 of this chapter, 14 created for such purpose. No employee of the Depart- 14 and to afford interim relief. 15 ment involved in the arbitration shall suffer any loss in 15 "§ 3713. Separability of provisions 16 pay because of his participation in the proceedings, 16 "If any provision of this chapter, or the application 17 either as a witness, aggrieved employee, or employee 17 of such provision to any person or circumstance, shall be 18 representative. 18 held invalid, the remainder of this chapter or the application 19 " (e) Department employees called upon by either 19 of such provision to persons or circumstances other than 20 party to participate in any phase of the grievance procedure, 20 those as to which it is held invalid, shall not be affected 21 including arbitration, shall be free to do SO without suffering 21 thereby." 74 75 1 "Chapter 49.-POSTAL SUPERVISOR-MANAGEMENT 1 pay dues, and which has, as one of its basic and central 2 RELATIONS 2 purposes, dealing with management of the Department "Sec. 3 "3901. Declaration of policy. concerning terms and conditions of employment, but "3902. Definitions. "3903. Recognition of supervisors' organizations. 4 shall not include (1) any organization whose basic pur- "3904. Saving provision-prior agreements. "3905. Dues checkoff. 5 pose is purely social, fraternal, or limited to special in- "3906. Standards of conduct for supervisors' organizations. "3907. Code of Fair Labor Practices. 6 terest objectives which are only incidentally related to "3908. Labor-management disputes. "3909. Authority of Postal Labor-Management Relations Panel. 7 terms and conditions of employment, (2) any organiza- "3910. Settlement of grievances. "3911. Violations and enforcement. 8 tion which by ritualistic practice, constitution, or bylaws "3912. Separability of provisions. 3 9 "§ 3901. Declaration of policy proscription, by tacit agreement among its members or 4 10 "The declaration of policy contained in section 3701 otherwise, denies membership because of race, color, 5 11 of this title, with respect to the value of employee participa- religion, national origin, sex, age, or preferential or 12 6 tion, through organizations, in management decisions affect- nonpreferential civil service status, or (3) any organiza- 13 7 ing them, and to their right to organize, applies with equal tion sponsored by the Department or by any agency, 8 force and effect with respect to supervisors and supervisors' 14 activity, or organization of the Federal Government; 9 organizations provided for in this chapter. 15 "representative" means any representative of a 10 "§ 3902. Definitions 16 supervisors' organization, whether an employee or non- 11 "As used in this chapter- 17 employee of the Department; 12 "supervisor" means any supervisor, and any other 18 "agreement' means any collective-bargaining 13 officer or employee whose position is classified as execu- 19 agreement negotiated pursuant to the provisions of this 14 tive, administrative, professional, or technical, in the 20 chapter; 15 postal field service, but does not include any postmaster; 21 "dispute' includes any controversy concerning 16 " 'supervisors' organization' means any national or- 22 terms, tenure, or conditions of employment, or concern- 17 ganization and its affiliates, composed of supervisors of 23 ing the association or representative of persons in nego- 18 the Department, in which supervisors participate and 24 tiating, fixing, maintaining, changing, or seeking to ar- 76 77 1 1 range terms or conditions of employment, regardless of and environment, work schedules, work procedures, 2 2 whether the disputants stand in the proximate relation automation, safety, transfers, job classifications, details, 3 3 of employer and employee; promotion procedures, demotions, assignments and re- 4 4 " 'grievance' means any cause of dissatisfaction out- assignments, job security, disciplinary actions and ap- 5 5 side a supervisor's control if the matter arises out of peals, in-service training, general labor-management 6 6 employment in the postal field service and the remedy relationship, methods or adjusting grievances, granting 7 7 sought is within the authority of the Department, in- of leave, and such other matters as may be specified by 8 8 cluding, but not limited to, adverse actions, complaints law, rule, regulation, or agreement negotiated pursuant 9 9 of discrimination, any other complaint by any supervisor to this chapter; 10 10 against the Department concerning the effect, inter- " 'consultation' means the obtaining and/or enter- 11 11 pretation, or application of a collective bargaining taining by management of views from designated repre- 12 12 agreement, and any violation of any law, rule, or regu- sentatives of a supervisors' organization relative to 13 13 lation governing conditions of employment which the formulating, changing, or implementing policies, prac- 14 14 Department has the authority to correct; tices, and working conditions and considering those 15 15 'adverse action' means any action which results in views, including objections or suggestions, before final 16 16 (1) any suspension for any reason of a supervisor from action is taken. Such consultation shall permit sufficient 17 17 his job, (2) any discharge from employment, (3) any time for the representatives of the supervisors' organi- 18 18 furlough without pay, (4) any reduction in rank or zation to present formal agreement or objection to man- 19 19 compensation, including those which are taken at the agement and the reasons for such agreement or objec- 20 20 election of the Department after a classification decision tion. If any objections are made, they must receive full 21 21 by either the United States Civil Service Commission consideration before final action is taken; 22 22 or the Department, and (5) any withholding of a salary " 'unit' means all supervisors in an installation of 23 23 step increase; the postal field service. 24 24 " 'conditions of employment' includes, but is not "§ 3903. Recognition of supervisors' organizations 25 25 limited to, such factors as seniority, working conditions " (a) Any supervisors' organization shall be granted 78 79 1 exclusive recognition within a unit by submitting to the 1 in the selection of an exclusive representative shall be re- 2 Department a verifiable certified membership list of more 2 solved by the Department of Labor pursuant to regulations 3 than 50 per centum of the total number of supervisors 3 established by the Secretary of Labor. Such regulations shall 4 within the unit. However, if one or more supervisors' orga- 4 include provision for binding arbitration of any such dispute 5 nizations submit a verifiable certified membership list of not 5 or disagreement. 6 more than 50 per centum and not less than 30 per centum 6 " (c) The Department shall accord exclusive recogni- 7 of the total number of employees within the craft, a secret 7 tion on a national basis to a supervisors' organization which 8 national ballot election shall be scheduled within a period of 8 has been selected under subsection (b) of this section. Such 9 sixty days from the date of submission. 9 national exclusive recognition shall be accorded to such 10 " (b) The right of a supervisors' organization to selec- 10 organization and the affiliates thereof at installation, regional, 11 tion as exclusive representative on a national basis where an 11 and other levels within the Department. 12 election is necessary shall be decided by a national secret 12 " (d) Recognition of a supervisors' organization shall 13 ballot election with the right of such selection being awarded 13 continue unless withdrawn pursuant to the provisions of this 14 to the supervisors' organization receiving a majority of valid 14 chapter. The Department shall not determine whether a 15 votes cast in the election. If no supervisors' organization 15 supervisors' organization shall become or continue to be 16 secures a majority of all valid votes cast but a majority of 16 recognized as exclusive representative of the supervisors in 17 all votes cast are for representation by some supervisors' 17 any unit within twenty-four months after a determination 18 organization, then a runoff election shall be held within sixty 18 of exclusive status, or while an agreement is in effect with 19 days thereafter, between the two supervisors' organizations 19 respect to such unit. 20 securing the largest number of votes, to determine the super- 20 " (e) When a supervisors' organization has been recog- 21 visors' organization which has achieved exclusive recogni- 21 nized as the exclusive representative of supervisors of an 22 tion. The election shall be conducted by the Department of 22 appropriate unit, it shall be entitled to act for and to negoti- 23 Labor under rules and regulations promulgated by the Secre- 23 ate agreements covering all supervisors in the unit at the 24 tary of Labor. Any dispute or disagreement as to eligibility 24 national and local installation levels and it shall be respon- 25 of a supervisors' organization or an employee to participate 25 sible for representing the interests of all such supervisors. 80 81 1 Such a supervisors' organization shall have the right to par- 1 "§ 3905. Dues checkoff 2 ticipate with management in the formulation, implementa- 2 "Where the Department has received from any super- 3 tion, and modification of personnel policies and practices, and 3 visor a written assignment which authorizes the Department 4 all other matters, affecting the conditions of employment of 4 to deduct from the wages of such supervisor money for the 5 supervisors in the unit. The Department and such super- 5 payment of membership dues in a supervisors' organization, 6 visors' organization, through appropriate officials and repre- 6 such assignment shall be honored, except that any such 7 sentatives, shall meet at reasonable times for the purposes of 7 assignment shall not be irrevocable for a period of more than 8 consultation as defined in this chapter. The Department and 8 one year or beyond the termination date of the applicable 9 the recognized supervisors' organization shall be required to 9 collective agreement, whichever occurs sooner. 10 negotiate in good faith for the purpose of arriving at an 10 "§ 3906. Standards of conduct for supervisors' organiza- 11 agreement at any level. Such obligation to bargain shall 11 tions 12 include the determination of appropriate bargaining tech- 12 "The Department will not accord exclusive recognition 13 niques and the inclusion of any understanding reached by 13 to any supervisors' organization unless the supervisors' or- 14 the parties in a written agreement. In exercising authority to 14 ganization is subject to governing requirements adopted by 15 make rules and regulations relating to personnel policies and 15 the supervisors' organization containing explicit and detailed 16 practices or to working conditions, the Department may not 16 provisions to which it subscribes, providing for- 17 make rules or regulations which are in conflict with any 17 " (1) the maintenance of democratic procedures and 18 agreements negotiated under this chapter. 18 practices, including provisions for periodic elections to 19 "§ 3904. Saving provision-prior agreements 19 be conducted subject to recognized safeguards and pro- 20 "Nothing in this chapter shall nullify any provision of 20 visions defining and securing the right of individual 21 any agreement in effect on the effective date of this Act 21 members to participation in the affairs of the supervisors' 22 between the Department and any supervisors' organization, 22 organization, to fair and equal treatment under the 23 except as hereafter may be agreed to by the parties thereto, 23 governing rules of the organization, and to fair process 24 until superseded by an agreement made pursuant to this 24 in disciplinary proceedings; 25 chapter. 25 " (2) the exclusion from office in the supervisors' 82 83 1 organization of persons affiliated with Communist or 1 against any supervisor because he has filed a complaint 2 other totalitarian movements; 2 or given testimony under this chapter or under the 3 " (3) the prohibition of business or financial inter- 3 Standards of Conduct for Supervisors' Organizations or 4 ests on the part of supervisors' organization officers and 4 the Code of Fair Labor Practices; 5 agents which conflict with their duty to the organization 5 " (5) refusing to accord exclusive recognition to a 6 and its members; and 6 supervisors' organization qualified for such recognition; 7 " (4) the maintenance of fiscal integrity in the 7 and 8 conduct of the affairs of the supervisors' organization, 8 " (6) refusing to hear, consult, confer, or negotiate 9 including provision for accounting and financial controls 9 in good faith with a supervisors' organization as required 10 and regular financial reports or summaries to be made 10 by this chapter. 11 available to members. 11 " (b) The supervisors' organization is prohibited from— 12 "§ 3907. Code of Fair Labor Practices 12 " (1) interfering with, restraining, or coercing any 13 " (a) The Department is prohibited from- 13 supervisor in the exercise of the rights assured by this 14 " (1) interfering with, restraining, or coercing any 14 chapter; 15 supervisor in the exercise of the rights assured by this 15 " (2) attempting to induce postal management to 16 chapter; 16 coerce any supervisor in the enjoyment of his rights 17 " (2) encouraging or discouraging membership in 17 under this chapter; 18 any supervisors' organization by discrimination in regard 18 " (3) coercing or attempting to coerce, or disciplin- 19 to hiring, tenure, promotion, or other conditions of 19 ing any member of the organization as punishment or 20 employment; 20 reprisal for, or for the purpose of hindering or imped- 21 " (3) sponsoring, controlling, or otherwise assisting 21 ing, his discharge of his duties owed as an officer or 22 any supervisors' organization, except that the Depart- 22 employee of the Department; and 23 ment may furnish customary and routine services and 23 " (4) discriminating against any supervisor with 24 facilities; 24 regard to the terms or conditions of membership because 25 " (4) disciplining or otherwise discriminating 25 of race, color, creed, sex, age, or national origin. 84 85 1 " (c) A supervisors' organization granted exclusive rec- 1 immediately assign one or more of its mediators to work 2 ognition shall, upon request, admit to membership in the orga- 2 with the parties, using every effort to bring the parties 3 nization without discrimination any supervisor in the unit 3 to an agreement. 4 represented who meets reasonable occupational standards and 4 " (2) If such efforts to bring about a settlement 5 pays the required fee and dues. Nothing in this chapter shall 5 through mediation and conciliation are unsuccessful, then 6 preclude an organization from suspending or expelling a 6 either party to the controversy is authorized to invoke the 7 member, who is a supervisor in the unit represented, from 7 services of the Postal Labor-Management Relations 8 the organization, if such action is taken for just cause and 8 Panel provided for by section 3709 of this title. 9 in accordance with procedures under the constitution or by- 9 "§ 3909. Authority of Postal Labor-Management Relations 10 laws of the supervisors' organization. 10 Panel 11 "§ 3908. Labor-management disputes 11 " (a) The Postal Labor-Management Relations Panel 12 " (a) The Department and any recognized supervisors' 12 created by section 3709 of this title shall have authority to 13 organization shall have the right to invoke the provisions of 13 investigate and resolve any dispute arising under section 14 section 3910 in respect to any dispute concerning- 14 3908 of this chapter, and to afford prompt and full relief 15 " (1) the application or interpretation of provisions 15 with respect to the issues involved in such dispute. Such 16 of this chapter; 16 relief shall include, among other matters, reinstatement to a 17 " (2) the terms to be incorporated in an agreement; 17 position, restitution of monetary loss, and such other com- 18 " (3) the interpretation, application, and enforce- 18 pensatory measures as the Panel deems appropriate, with 19 ment of the Standards of Conduct for Supervisors' Orga- 19 respect to any supervisor involved in such dispute. The 20 nizations and the Code of Fair Labor Practices; and 20 Panel, upon its determination that there has been an arbi- 21 " (4) the alleged violations of any agreement. 21 trary, capricious, or otherwise knowing violation of this 22 " (b) In resolving disputes set forth in subsection (a) 22 chapter, may recommend that the Postmaster General disci- 23 of this section, the following procedures shall be applicable: 23 pline the offending party by demotion, suspension, removal, 24 " (1) Either party may invoke the services of the 24 or such other remedial action as the Panel deems advisable. 25 Federal Mediation and Conciliation Service, which shall 25 The Postmaster General shall consider any such recommen- 86 87 1 dation of the Panel and take action thereon as he determines 1 which the supervisor is employed, shall have the right to 2 to be proper in the light of all of the pertinent facts and 2 present and process grievances and to submit to arbitration 3 circumstances, subject to the exercise by any officer or em- 3 unresolved grievances: Provided, however, That any super- 4 ployee of the Department of the right to appeal any deter- 4 visor desiring arbitration of a grievance shall notify the 5 mination of the Postmaster General in accordance with laws, 5 supervisors' organization which has exclusive recognition for 6 rules, and regulations governing appeals of postal employees 6 the supervisors' unit in writing and must receive the written 7 from adverse personnel actions. 7 consent of said supervisors' organization in order to have 8 " (b) All of the additional powers, duties, practices, and 8 the grievance submitted to arbitration: Provided further, 9 procedures of the Panel, and all of the related rights and 9 That the supervisors' organization may initiate grievances 10 remedies, provided for by chapter 47 of this title shall apply, 10 and arbitration proceedings on its own behalf. 11 with equal force and effect, to the operation of the Postal 11 " (c) Grievance procedures shall be established in nego- 12 Supervisor-Management Relations Program established by 12 tiations between representatives of supervisors' organizations 13 this chapter. 13 which have achieved exclusive recognition and representa- 14 " (c) Supervisors of the Department called upon by 14 tives of the Department. Such procedures shall include, but 15 either party to participate in any phase of the Panel pro- 15 shall not be restricted to, procedures assuring supervisors- 16 ceedings shall be free to do SO without suffering any loss 16 " (1) the right to be represented by their super- 17 of pay, and all such employees shall be free from restraint, 17 visors' organization; 18 coercion, interference, intimidation, or reprisal as a conse- 18 " (2) fixed and reasonable time limits for a decision 19 quence of their participation. 19 at each grievance step; and 20 "§ 3910. Settlement of grievances " 20 " (3) the right to call, question, and cross-examine 21 " (a) Grievances filed under this chapter shall be proc- 21 witnesses. 22 essed as provided in subsections (b) (c), (d), and (e) 22 " (d) The arbitration procedure shall be as follows: 23 of section 3711 of this title. 23 " (1) Any grievance not satisfactorily settled in the 24 " (b) Any supervisor, or a supervisors' organization 24 grievance process shall be subject to arbitration upon the 25 which has achieved exclusive recognition for the unit in 88 89 1 written request of the supervisors' organization which has 1 coercion, interference, intimidation, or reprisal as a conse- 2 achieved exclusive recognition for the unit of the super- 2 quence of their participation. 3 visor or supervisors involved. Such written request shall 3 "§ 3911. Violations and enforcement 4 be directed to the principal administrative officer of the 4 " (a) It shall be unlawful for anyone to violate or refuse 5 Department. 5 to comply with a decision or order of the Panel rendered pur- 6 " (2) The Department shall within five working 6 suant to sections 3908 or 3909 of this chapter or of an 7 days after receipt of the request for arbitration request 7 arbitrator rendered pursuant to section 3910 of this chapter. 8 the Secretary of Labor to furnish a panel of names of five 8 " (b) The district courts of the United States, upon peti- 9 arbitrators from which the supervisors' organization and 9 tion of an aggrieved party, shall have jurisdiction for cause 10 the Department shall select an arbitrator, by alternately 10 shown to restrain any violation of subsection (a) of this 11 striking off four names. The name of the person remain- 11 section, to require compliance with any decision or order 12 ing on the list shall be arbitrator in that case. 12 issued under section 3908, 3909, or 3910 of this chapter, 13 " (3) The decision of the arbitrator shall be final 13 and to afford interim relief. 14 and binding. The fee and expenses of the arbitrator and 14 "§ 3912. Separability of provisions 15 the general expenses incident to the arbitration shall be 15 "If any provision of this chapter, or the application of 16 paid by the Secretary of Labor from an arbitration fund 16 such provision to any person or circumstance, shall be held 17 created for such purpose. No supervisor of the Depart- 17 invalid, the remainder of this chapter or the application of 18 ment involved in the arbitration shall suffer any loss in 18 such provision to persons or circumstances other than those 19 pay because of this participation in the proceedings, 19 as to which it is held invalid, shall not be affected thereby." 20 either as a witness, aggrieved supervisor, or supervisor 20 TITLE VIII-MISCELLANEOUS PROVISIONS 21 representative. 21 MAIL INPUT FROM BUSINESS AND INDUSTRY 22 " (e) Supervisors called upon by either party to par- 22 SEC. 801. (a) Chapter 5 of title 39, United States 23 ticipate in any phase of the grievance procedure, including 23 Code, is amended by adding at the end thereof the following 24 arbitration, shall be free to do SO without suffering any loss 24 new section: 25 of pay, and all such supervisors shall be free from restraint, 90 91 1 "§ 511. Scheduling mail input 1 (c) Section 5109 of title 5, United States Code, is 2 "The Postmaster General shall make full use of his 2 amended by adding at the end thereof the following new 3 authority to operate the Department to obtain, from mailers 3 subsection: 4 in private business and industry, agreements that matter 4 " (e) The position of Executive Assistant for Employee 5 to be transmitted in the mails by such mailers be presented 5 Relations in the Post Office Department established by sec- 6 for mailing at such times and places, and in such manner, 6 tion 310 of title 39 is classified at GS-18 and is in addition to 7 as in the judgment of the Postmaster General will contribute 7 the number of positions authorized by section 5108 (a) of 8 most effectively to the orderly, expeditious, and efficient 8 this title.". 9 handling, transportation, and delivery of the mails.". 9 EFFECTIVE DATES 10 (b) The table of contents of chapter 5 of title 39, 10 SEC. 803. This Act shall take effect as follows: 11 United States Code, is amended by adding at the end 11 (1) Titles I, IV, V, and VIII on date of enact- 12 thereof- 12 ment of this Act; "511. Scheduling mail input." 13 (2) Titles II and VII on the first day of the third 13 POSTAL EMPLOYEE RELATIONS ASSISTANT 14 month which begins after date of enactment of this Act; 14 SEC. 802. (a) Chapter 3 of title 39, United States Code, 15 (3) Title III on the first day of the sixth month 15 is amended by adding at the end thereof the following new 16 which begins after date of enactment of this Act; and 16 section: 17 (4) Title VI on the first day of the first fiscal year 17 "§ 310. Executive Assistant for Employee Relations 18 which begins after the date of enactment of this Act. 18 "An Executive Assistant for Employee Relations, 19 appointed by the Postmaster General, shall act as confidential 20 personal adviser to the Postmaster General on matters per- 21 taining to employee relations and perform such other related 22 duties as the Postmaster General may designate.". 23 (b) The table of contents of chapter 3 of title 39, United 24 States Code, is amended by adding at the end thereof: "310. Executive Assistant for Employee Relations.". 91sT CONGRESS 1ST SESSION H. R. 4 A BILL To modernize the United States postal estab- lishment, to provide for efficient and eco- nomical postal service to the public, to im- prove postal employee-management rela- tions, and for other purposes. By Mr. DULSKI JANUARY 3, 1969 Referred to the Committee on Post Office and Civil Service This is cipal The billader prin cigaretion as 91sT H. H. R. 4803 H.R.8519 H.R. IN THE HOUSE OF REPRESENTATIVES Subcomm. JANUARY 28, 1969 Mr. DANIELS of New Jersey introduced the following bill; which was referred to the Committee on Post Office and Civil Service Postal A BILL To provide for improved employee-management relations in the postal service, and for other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Postal Employee Labor- 4 Management Act of 1969". 5 TITLE I-DECLARATION OF POLICY 6 SEC. 101. (a) Participation of postal employees, through 7 labor organizations, with management in decisions which 8 affect them contributes to the effective conduct of the 9 business of the Post Office Department. Therefore, strong, 10 democratically administered labor organizations are in the 11 public interest and their development should be encouraged. I 2 3 1 (b) The right of labor organizations to organize em- 1 by the Department or by any agency, activity, or orga- 2 ployees of the Department, and to bargain collectively, and 2 nization of the Federal Government; 3 to present grievances on their behalf without restraint, 3 (3) "representative" means any representative of a 4 coercion, interference, intimidation, or reprisal is recognized 4 labor organization, whether an employee or nonem- 5 and encouraged. 5 ployee of the Department; 6 TITLE I-DEFINITIONS 6 (4) "agreement" means any collective-bargaining 7 SEC. 201. For the purposes of this Act- 7 agreement negotiated pursuant to the provisions of this 8 (1) "employee" means any employee in the postal 8 Act; 9 field service; 9 (5) "dispute" includes any controversy concerning 10 (2) "labor organization" means any national union, 10 terms, tenure, or conditions of employment, or concern- 11 federation, or association of postal employees and its 11 ing the association or representative of persons in nego- 12 affiliates, composed of employees of the Department, in 12 tiating, fixing, maintaining, changing, or seeking to 13 which employees participate and pay dues, and which 13 arrange terms or conditions of employment, regardless 14 has, as one of its basic and central purposes, dealing 14 of whether the disputants stand in the proximate rela- 15 with management of the Department concerning terms 15 tion of employer and employee; 16 and conditions of employment, but shall not include 16 (6) "grievance" means any cause for dissatisfaction 17 (A) any organization whose basic purpose is purely 17 outside an employee's control if the matter arises out of 18 social, fraternal, or limited to special interest objectives 18 employment in the postal field service and the remedy 19 which are only incidentally related to terms and condi- 19 sought is within the authority of the Department, in- 20 tions of employment, (B) any organization which by 20 cluding, but not limited to, adverse actions, complaints 21 ritualistic practice, constitution, or bylaws proscription, 21 of discrimination, any other complaint by any employee 22 by tacit agreement among its members or otherwise, 22 against the Department concerning the effect, interpre- 23 denies membership because of race, color, religion, na- 23 tation, or application of a collective-bargaining agree- 24 tional origin, sex, age, or preferential or nonpreferential 24 ment, and any violation of any law, rule, or regulation 25 civil service status, or (C) any organization sponsored 5 4 1 1 governing conditions of employment which the Depart- tices, and working conditions and considering those 2 2 ment has the authority to correct; views, including objections or suggestions, before final 3 3 (7) "adverse action" means any action which re- action is taken. Such consultation shall permit sufficient 4 4 sults in (A) any suspension for any reason of an em- time for the representatives of the labor organizations to 5 5 ployee from his job, (B) any discharge from employ- present formal agreement or objection to management 6 6 ment, (C) any furlough without pay, (D) any reduction and the reasons for such agreement or objection. If any 7 7 in rank or compensation, including those which are objections are made, they must receive full consideration 8 8 taken at the election of the Department after a classifica- before final action is taken; 9 9 tion decision by either the United States Civil Service (10) "unit" means craft of postal employees for the 10 10 Commission or the Department, and (E) any withhold- purposes of recognition and representation; and 11 11 ing of a salary step increase; (11) "craft" means each of the following groups of 12 12 (8) "conditions of employment" includes, but is not employees: 13 13 limited to, such factors as seniority, working conditions (A) postal clerks. 14 and environment, work schedules, work procedures, (B) city letter carriers. 14 15 15 automation, safety, transfers, job classifications, details, (C) mail handlers. 16 promotion procedures, demotions, assignments and re- (D) motor vehicle employees (operations and 16 17 17 assignments, job security, disciplinary actions and ap- maintenance). 18 (E) rural letter carriers. 18 peals, in-service training, labor-management relation- 19 (F) special delivery messengers. 19 ship, methods of adjusting grievances, granting of leave, 20 and such other matters as may be specified by law, rule, (G) maintenance employees. 20 21 TITLE III-RECOGNITION OF LABOR 21 regulation, or agreement negotiated pursuant to this 22 ORGANIZATIONS 22 Act; 23 SEC. 301. (a) Any labor organization shall be granted 23 (9) "consultation" means the obtaining and/or 24 exclusive recognition within a unit by submitting to the 24 entertaining by management of views from designated 25 Department a verifiable certified membership list of more 25 representatives of the labor organizations relative to 26 than 50 per centum of the total number of employees within 26 formulating, changing, or implementing policies, prac- 6 7 1 the unit. However, if one or more labor organizations submit 1 of Labor. Such regulations shall include provision for binding 2 a verifiable certified membership list of not more than 50 2 arbitration of any such dispute or disagreement. 3 per centum and not less than 30 per centum of the total 3 (c) The Department shall accord exclusive recogni- 4 number of employees within the craft, a secret national ballot 4 tion on a national craft basis to a labor organization which 5 election shall be scheduled within a period of sixty days 5 has been selected under subsection (b) of this section. Such 6 from date of submission. 6 national exclusive recognition shall be accorded to such labor 7 (b) The right of a labor organization to selection as 7 organization and the affiliates thereof at installation, regional, 8 the exclusive craft representative on a national basis where 8 and other levels within the Department. 9 an election is necessary shall be decided by a national secret 9 (d) Recognition of a labor organization shall continue 10 ballot election with the right of such selection being awarded 10 unless withdrawn pursuant to the provisions of this Act. 11 to the labor organization receiving a majority of valid votes 11 The Department shall not determine whether a labor orga- 12 cast in the election. If no labor organization secures a ma- 12 nization shall become or continue to be recognized as exclu- 13 jority of all valid votes cast but a majority of all votes cast 13 sive representative of the employees in any unit within 14 are for representation by some labor organization, then a run- 14 twenty-four months after a determination of exclusive status, 15 off election shall be held within sixty days thereafter, be- 15 or while an agreement is in effect with respect to such unit. 16 tween the two labor organizations securing the largest num- 16 (e) No unit shall be established for purposes of ex- 17 ber of votes, to determine the labor organization which has 17 clusive recognition which includes any Department official 18 achieved exclusive recognition. The election shall be con- 18 who has primarily executive, managerial, or policymaking 19 ducted by the Department of Labor under rules and regula- 19 responsibilities or any supervisor who officially and regularly 20 tions promulgated by the Secretary of Labor. Any dispute 20 evaluates the performance of employees. 21 or disagreement as to eligibility of a labor organization or 21 (f) When a labor organization has been recognized 22 an employee to participate in the selection of an exclusive 22 as the exclusive craft representative of employees of an 23 craft representative shall be resolved by the Department of 23 appropriate unit, it shall be entitled to act for and to nego- 24 Labor pursuant to regulations established by the Secretary 24 tiate agreements covering all employees in the unit at the 25 national and local installation levels and it shall be respon- 8 9 1 sible for representing the interests of all such employees. 1 ment and any labor organization, except as hereafter may be 2 Such a labor organization shall have the right to participate 2 agreed to by the parties thereto, until superseded by an 3 with management in the formulation, implementation, and 3 agreement made pursuant to this Act. 4 modification of personnel policies and practices, and all other 4 TITLE V-DUES CHECKOFF 5 matters affecting the conditions of employment of employees 5 SEC. 501. Where the Department has received from any 6 in the unit. The Department and such labor organization, 6 employee a written assignment which authorizes the Depart- 7 through appropriate officials and representatives, shall meet 7 ment to deduct from the wages of such employee money for 8 at reasonable times for the purposes of consultation as de- 8 the payment of membership dues in a labor organization, 9 fined in this Act. The Department and the recognized 9 such assignment shall be honored, except that any such assign- 10 labor organization shall be required to negotiate in good 10 ment shall not be irrevocable for a period of more than one 11 faith for the purpose of arriving at an agreement at any 11 year or beyond the termination date of the applicable col- 12 level. Such obligation to bargain shall include the determina- 12 lective agreement, whichever occurs sooner. 13 tion of appropriate bargaining techniques and the inclusion 13 TITLE VI-STANDARDS OF CONDUCT FOR LABOR 14 of any understanding reached by the parties in a written 14 ORGANIZATIONS 15 agreement. In exercising authority to make rules and regula- 15 SEC. 601. The Department will not accord exclusive 16 tions relating to personnel policies and practices or to work- 16 recognition to any labor organization unless the labor orga- 17 ing conditions, the Department may not make rules or regu- 17 nization is subject to governing requirements adopted by the 18 lations which are in conflict with any agreement negotiated 18 labor organization containing explicit and detailed provisions 19 under this Act. 19 to which it subscribes, providing for- 20 TITLE IV-SAVING PROVISION-PRIOR NA- 20 (1) the maintenance of democratic procedures 21 TIONAL EXCLUSIVE RECOGNITION AND 21 and practices, including provisions for periodic elections 22 AGREEMENTS 22 to be conducted subject to recognized safeguards and 23 SEC. 401. Nothing in this Act shall nullify any previous- 23 provisions defining and securing the right of individual 24 ly established national exclusive recognition status within a 24 members to participation in the affairs of the labor orga- 25 unit, as defined herein, nor any provisions of any agreement 25 nization, to fair and equal treatment under the govern- 26 in effect on the effective date of this Act between the Depart- H.R. 4803-2 10 11 1 ing rules of the organization, and to fair process in dis- 1 may furnish customary and routine services and facili- 2 ciplinary proceedings; 2 ties; 3 (2) the exclusion from office in the labor organi- 3 (4) disciplining or otherwise discriminating 4 zations of persons affiliated with Communist or other 4 against any employee because he has filed a complaint 5 totalitarian movements; 5 or given testimony under this chapter or under the 6 (3) the prohibition of business or financial in- 6 Standards of Conduct for Labor Organizations or the 7 terests on the part of labor organization officers and 7 Code of Fair Labor Practices; 8 agents which conflict with their duty to the organization 8 (5) refusing to accord exclusive recognition to a 9 and its members; and 9 labor organization qualified for such recognition; and 10 (4) the maintenance of fiscal integrity in the 10 (6) refusing to hear, consult, confer, or negotiate 11 conduct of the affairs of the labor organization, including 11 in good faith with a labor organization as required by 12 provision for accounting and financial controls and regu- 12 this Act. 13 lar financial reports or summaries to be made available 13 (b) The labor organization is prohibited from- 14 to members. 14 (1) interfering with, restraining, or coercing any 15 TITLE VII-CODE OF FAIR LABOR PRACTICES 15 employee in the exercise of the rights assured by this 16 SEC. 701. (a) The Department is prohibited from--- 16 Act. 17 (1) interfering with, restraining, or coercing any 17 (2) attempting to induce postal management to 18 employee in the exercise of the rights assured by this 18 coerce any employee in the enjoyment of his rights 19 chapter; 19 under this Act. 20 (2) encouraging or discouraging membership in 20 (3) coercing or attempting to coerce, or disciplin- 21 any labor organization by discrimination in regard to 21 ing any member of the organization as punishment or 22 hiring, tenure, promotion, or other conditions of em- 22 reprisal for, or for the purpose of hindering or impeding 23 23 ployment; his discharge of his duties owed as an officer or employee 24 (3) sponsoring, controlling, or otherwise assisting 24 of the Department; and 25 any employee organization, except that the Department 25 (4) discriminating against any employee with 12 13 1 regard to the terms or conditions of membership because 1 (1) Either party may invoke the services of the 2 of race, color, creed, sex, age, or national origin. 2 Federal Mediation and Conciliation Service, which shall 3 (c) A labor organization granted exclusive recogni- 3 immediately assign one or more of its mediators to work 4 tion shall, upon request, admit to membership in the orga- 4 with the parties, using every effort to bring the parties 5 nization without discrimination any employee in the unit 5 to an agreement. 6 represented who meets reasonable occupational standards 6 (2) If such efforts to bring about a settlement 7 and pays the required fee and dues. Nothing in this Act 7 through mediation and conciliation are unsuccessful, then 8 shall preclude a labor organization from suspending or ex- 8 either party to the controversy is authorized to invoke 9 pelling a member, who is an employee in the unit repre- 9 the services of the Postal Labor-Management Relations 10 sented, from the organization, if such action is taken for just 10 Panel hereinafter provided for. 11 cause and in accordance with procedures under the constitu- 11 TITLE IX-CREATION OF POSTAL LABOR- 12 tion or bylaws of the labor organization. 12 MANAGEMENT RELATIONS PANEL 13 TITLE VIII-LABOR-MANAGEMENT DISPUTES 13 SEC. 901. (a) There is created a Postal Labor-Man- 14 SEC. 801. (a) The Department and any recognized 14 agement Relations Panel (referred to in this Act as the 15 labor organization shall have the right to invoke the provi- 15 "Panel") 16 sions of title X in respect to any dispute concerning- 16 (b) The Panel shall be composed of a Chairman and 17 (1) the application or interpretation of provisions 17 two additional members. The Chairman and the members 18 of this Act; 18 of the Panel shall be appointed by the President of the 19 (2) the terms to be incorporated in an agreement; 19 United States by and with the advice and consent of the 20 (3) the interpretation, application, and enforce- 20 Senate, and shall not be otherwise employed by the Gov- 21 ment of the Standards of Conduct for Labor Organiza- 21 ernment of the United States. 22 tions and the Code of Fair Labor Practices; and 22 (c) One of the original members of the Panel shall 23 (4) alleged violations of any agreement. 23 be appointed for à term of one year, one for a term of 24 (b) In resolving disputes set forth in subsection (a) 24 three years, and one for a term of five years, but their 25 of this section, the following procedures shall be applicable: 25 successors shall be appointed for terms of five years each, 14 15 1 excepting that any individual chosen to fill a vacancy shall 1 Act, and to afford prompt and full relief with respect 2 be appointed only for the unexpired term of the member 2 to the issues involved in such dispute. Such relief shall in- 3 whom he shall replace. The President shall designate one 3 clude, among other matters, reinstatement to a position, 4 member to serve as Chairman of the Panel. Any member of 4 restitution of monetary loss, and such other compensatory 5 the Panel may be removed by the President, upon notice 5 measures as the Panel deems appropriate, with respect to 6 and hearing, for neglect of duty or malfeasance in office, 6 any employee involved in such dispute. The Panel, upon 7 but for no other cause. 7 its determination that there has been an arbitrary, capricious, 8 (d) There shall be an Executive Secretary of the 8 or otherwise knowing violation of this Act, may recom- 9 Panel who shall be appointed by the Panel for a term of 9 mend that the Postmaster General discipline the offending 10 five years. Each member of the Panel and the Executive 10 party by demotion, suspension, removal, or such other reme- 11 Secretary shall receive a salary equal to the salary for level 11 dial action as the Panel deems advisable. The Postmaster 12 II of the Executive Schedule and shall be eligible for reap- 12 General shall consider any such recommendation of the 13 pointment and shall not engage in any other business, voca- 13 Panel and take such action thereon as he determines to be 14 tion, or employment. The Panel shall have the authority to 14 proper in the light of all of the pertinent facts and circum- 15 employ staff, including counsel, it deems necessary for the 15 stances, subject to the exercise by any officer or employee 16 proper performance of its duties and to fix their compensa- 16 of the Department of the right to appeal any determination 17 tion and expenses. 17 of the Postmaster General in accordance with laws, rules, 18 TITLE X-POWERS AND DUTIES OF PANEL 18 and regulations governing appeals of postal employees from 19 SEC. 1001. (a) The Panel shall have authority from 19 adverse personnel actions. 20 time to time to make, amend, and rescind, in the manner 20 (c) For the purpose of any hearings or investigation 21 prescribed by the Administrative Procedure Act, such rules 21 provided for in this Act, the provisions of sections 49 and 22 and regulations as may be necessary to carry out the pro- 22 50 of title 15, United States Code (relating to the 23 visions of this Act. 23 attendance of witnesses and the production of books, papers, 24 (b) The Panel shall have authority to investigate 24 and documents) are made applicable to the jurisdiction, 25 and resolve any dispute arising under title VIII of this 25 powers, and duties of the Panel. 16 17 1 (d) Any person who shall wilfully resist, prevent, 1 interference, intimidation, or reprisal as a consequence of 2 impede, or interfere with any member of the Panel or any 2 their participation. 3 of its agents or agencies or any arbitrator selected pursuant 3 TITLE XI-SETTLEMENT OF GRIEVANCES 4 to this Act in the performance of duties pursuant to this 4 SEC. 1101. (a) Grievances filed under this Act shall be 5 Act shall be punished by a fine of not more than $5,000 5 processed as provided in subsections (b), (c), (d), and (e) 6 or by imprisonment for not more than one year, or both. 6 of this section. 7 (e) After its services have been invoked, the Panel 7 (b) Any employee, or a labor organization which has 8 or its designee shall assist the parties in arriving at a settle- 8 achieved exclusive recognition for the craft in which the 9 ment through whatever voluntary methods and procedures 9 employee is employed, shall have the right to present and 10 it may consider to be appropriate. 10 process grievances and to submit to arbitration unresolved 11 (f) If the Panel is unable to assist the parties in 11 grievances: Provided, however, That any employee desiring 12 arriving at a settlement through other means, the Panel or its 12 arbitration of a grievance shall notify the labor organization 13 designee shall promptly hold hearings at which both parties 13 which has exclusive recognition for the employee's craft in 14 shall be given a full opportunity to present their respective 14 writing and must receive the written consent of said labor 15 cases. 15 organization in order to have the grievance submitted to 16 (g) At the conclusion of the hearings, the Panel shall, 16 arbitration: Provided further, That the labor organization 17 with due dispatch, render its decision in writing on the mat- 17 may initiate grievances and arbitration proceedings on its 18 ters in dispute. This decision shall be promptly served 18 own behalf. 19 upon the parties to the proceedings and shall be final and 19 (c) Grievance procedures shall be established in nego- 20 binding upon all parties. 20 tiations between representatives of labor organizations which 21 (h) Employees of the Department called upon by 21 have achieved exclusive recognition and representatives of 22 either party to participate in any phase of the Panel proceed- 22 the Department. Such procedures shall include, but shall not 23 ings shall be free to do SO without suffering any loss of pay, 23 be restricted to, procedures assuring employees- 24 and all such employees shall be free from restraint, coercion, 18 19 1 (1) the right to be represented by their labor 1 paid by the Secretary of Labor from an arbitration fund 2 organization; 2 created for such purpose. No employee of the Depart- 3 (2) fixed and reasonable time limits for a deci- 3 ment involved in the arbitration shall suffer any loss in 4 sion at each grievance step; and 4 pay because of his participation in the proceedings, (3) the right to call, question, and cross-examine 5 5 either as a witness, aggrieved employee, or employee 6 witnesses. 6 representative. 7 (d) The arbitration procedure shall be as follows: 7 (e) Department employees called upon by either 8 (1) Any grievance not satisfactorily settled in the 8 party to participate in any phase of the grievance procedure, 9 grievance process shall be subject to arbitration upon 9 including arbitration, shall be free to do SO without suffering 10 the written request of the labor organization which has 10 any loss of pay, and all such employees shall be free from 11 achieved exclusive recognition for the craft of the em- 11 restraint, coercion, interference, intimidation, or reprisal as a 12 ployee or employees involved. Such written request 12 consequence of their participation. 13 shall be directed to the principal administrative officer 13 TITLE XII-VIOLATIONS AND ENFORCEMENT 14 of the Department. 14 SEC. 1201. (a) It shall be unlawful for anyone to 15 (2) The Department shall within five working 15 violate or refuse to comply with a decision or order of the 16 days after receipt of the request for arbitration request 16 Panel rendered pursuant to title VIII or title IX of this Act 17 the Secretary of Labor to furnish a panel of names of 17 or of an arbitrator rendered pursuant to section 1101 of this 18 five arbitrators from which the labor organization and 18 Act. 19 the Department shall select an arbitrator, by alternately 19 (b) The district courts of the United States, upon peti- 20 striking off four names. The name of the person remain- 20 tion of an aggrieved party, shall have jurisdiction for cause 21 ing on the list shall be arbitrator in that case. 21 shown to restrain any violation of subsection (a) of this 22 (3) The decision of the arbitrator shall be final 22 section, to require compliance with any decision or order 23 and binding. The fee and expenses of the arbitrator and 23 issued under title VIII, title IX, or title XI of this Act and 24 the general expenses incident to the arbitration shall be 24 to afford interim relief. 20 1 TITLE XII-SEPARABILITY OF PROVISIONS 2 SEC. 1301. If any provision of this chapter, or the 3 application of such provision to any person or circumstance, 4 shall be held invalid, the remainder of this chapter or the 5 application of such provision to persons or circumstances 6 other than those as to which it is held invalid, shall not be 7 affected thereby. Service Referred to the Committee on Post Office and Civil By Mr. DANIELS of New Jersey other purposes. JANUARY 28, 1969 ment relations in the postal service, and for To provide for improved employee-manage- 1ST SESSION 91ST CONGRESS A BILL H. R. 4803 91sT CONGRESS 1ST SESSION H. R. 7915 IN THE HOUSE OF REPRESENTATIVES FEBRUARY 27, 1969 Mr. DULSKI (for himself, Mr. OLSEN, Mr. NIX, Mr. CHARLES H. WILSON, Mr. WALDIE, Mr. WILLIAM D. FORD, Mr. HAMILTON, Mr. CUNNINGHAM, and Mr. HAWKINS) introduced the following bill; which was referred to the Committee on Post Office and Civil Service A BILL To provide for improved employee-management relations in the Federal service, and for other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Federal Employee 4 Labor-Management Act of 1969". 5 TITLE I-DECLARATION OF POLICY 6 SEC. 101. Participation of employees with manage- 7 ment, through employee organizations or unions in deci- 8 sions which affect them, contributes to the effective conduct 9 of the public business. Therefore, strong, democratically run 10 employee organizations or unions are in the public interest I 2 3 1 and their development should be encouraged by lawful 1 tation, application, claim of breach, or violation of any law, 2 means. 2 rule, or regulation governing conditions of employment, in 3 SEC. 102. The right of officers or representatives of a 3 which the head of the department or agency has the authority 4 union or organization of Government employees representing 4 to correct. 5 the employees of a department or agency or subdivision of 5 (b) The term "conditions of employment" shall include 6 such department or agency to present grievances and engage 6 such factors as working conditions, work schedules, work pro- 7 in collective bargaining in behalf of their members without 7 cedures, automation, safety, transfers, job classifications, 8 restraint, coercion, interference, intimidation, or reprisal is 8 details, promotional procedures, demotions, rates of pay, reas- 9 recognized and encouraged. Violation of such right on the 9 signments, reductions in force, hours of work, disciplinary 10 part of an administrative official shall be cause for his sus- 10 actions, and such other matters as may be specified by law, 11 pension or removal or such other punitive action as the head 11 rule, or regulation. 12 of the department or agency may deem advisable. 12 (c) The term "union representative" means any repre- 13 SEC. 103. In order to assure a uniform and orderly 13 sentative of a union of Government employees, whether an 14 administration of labor-management operations throughout 14 employee or a nonemployee of the Federal Government, who 15 the Federal service it is in the public interest to establish 15 has been chosen by an aggrieved employee to represent him 16 a Federal Service Labor-Management Relations Board, 16 in dealing with Government management on the subject of 17 which shall perform the basic and essential role of providing 17 his complaint. 18 direction to the entire labor-management relations program. 18 (d) The term "union of Government employees" means 19 TITLE I-DEFINITIONS 19 any national organization and/or its affiliates, made up in 20 SEC. 201. For the purposes of this Act- 20 whole or in part of employees of the Federal Government, 21 (a) The term "grievance" means any complaint by any 21 in which the employees participate and pay dues, and which 22 employee of the executive branch of the United States Gov- 22 has as its basic and central purposes, dealing with the man- 23 ernment against the management of any United States Gov- 23 agement of a Government department, agency, activity, or- 24 ernment department, agency, activity, organization, or func- 24 ganization, or function concerning conditions of employment, 25 tion in the executive branch, concerning the effect, interpre- 25 but shall not include any organization whose basic purpose 4 5 1 is purely social, fraternal, or limited to a single special in- 1 shall be decided by a secret ballot, where an election is nec- 2 terest objective which is only incidentally related to condi- 2 essary, with the representation decided by a majority of 3 tions of employment; and shall not include any organization 3 votes cast 4 which, by ritualistic practice, constitutional or bylaws pre- 4 (b) Within six months after the effective date of this Act, 5 scription, by tacit agreement among its members or other- 5 the Federal Service Labor-Management Relations Board, 6 wise, denies membership because of race, color, religion, na- 6 hereinafter provided in section 401 (a) of this Act, shall, 7 tional origin, preferential or nonpreferential civil service 7 after giving officers or representatives of unions having mem- 8 status, or any organization sponsored by a department, 8 bers in the Federal Government an opportunity to present 9 agency, activity, organization, or facility of the Federal 9 their views, promulgate regulations specifying that adminis- 10 Government. 10 trative officers shall at the request of officers or representa- 11 (e) The term 'dues-paying member" means any em- 11 tives of the unions confer, either in person or through duly 12 ployee, former employee, or retired employee of the executive 12 designated representatives, with such officers or representa- 13 branch of the United States Government covered by this 13 tives on matters of policy affecting working conditions, work 14 Act who is a member of a "union of Government employees" 14 procedures, automation, safety, inservice training, labor-man- 15 and who is free from delinquency in the payment of dues and 15 agement cooperation, methods of adjusting grievances, trans- 16 assessments lawfully required as a condition of membership 16 fers, appeals, granting of leave, promotion procedures, de- 17 in the constitution and/or bylaws of any "union of Govern- 17 motions, rates of pay, and reduction in force. Such regulations 18 ment employees" covered by this Act. 18 shall recognize the right of such officers or representatives to 19 (f) When used in this Act, the term "United States 19 carry on any lawful activity without intimidation, coercion, 20 Government" or "Federal Government". includes the govern- 20 interference, or reprisal: Provided, That nothing in this sub- 21 ment of the District of Columbia and employees paid in 21 section shall nullify any provision of any contract, agreement 22 whole or in part from nonappropriated funds. 22 or regulation, or established past practice or regulation 23 TITLE III-RECOGNITION OF ORGANIZATIONS 23 reached by mutual agreement between a department or 24 SEC. 301. (a) Determination of the right of a union to 24 agency and a union, execpt as may hereafter be agreed to by 25 selection as the representative on a national or local basis 25 the parties thereto. 6 7 1 (c) Administrative officers shall solicit the views of offi- 1 sonal concern to the attention of appropriate officials in 2 cers or representatives of such organizations of employees 2 accordance with applicable law, rule, regulation, or 3 prior to the promulgation of new policies or the modification 3 established agency policy, or from choosing his own 4 of existing policies with respect to such matters as are enu- 4 representative in a grievance or appellate action; or 5 merated in subsection (b) of this section. 5 (2) preclude or restrict consultations and dealings 6 SEC. 302. (a) Agencies shall accord formal or exclu- 6 between an agency and any veterans' organization with 7 sive recognition to employee organizations, on a national 7 respect to matters of particular interest to employees 8 basis, which request such recognition in conformity with the 8 with veterans' preference; or 9 requirements of this Act. In the case of local units, where no 9 (3) preclude an agency from consulting or dealing 10 organization qualifies for exclusive recognition, formal recog- 10 with any religious, social, fraternal, or other lawful 11 nition can be granted with 10 per centum actual unit mem- 11 association, not qualified as an employee organization 12 bership. 12 with respect to matters or policies which involve indi- 13 (b) Recognition of an employee organization or union 13 vidual members of the association, or are of particular 14 shall continue SO long as such organization satisfies the cri- 14 applicability to it or its members. 15 teria of this Act applicable to such recognition; but nothing 15 SEC. 303. (a) An agency shall accord an employee 16 in this section shall require any agency to determine whether 16 organization, which does not qualify for exclusive recogni- 17 an organization should become or continue to be recognized 17 tion, informal recognition as representative of its member 18 as exclusive representative of the employees in any unit 18 employees without regard to whether any other employee 19 within twelve months after a prior determination of exclu- 19 organization has been accorded exclusive recognition as 20 sive status or while a contract is in effect with respect to 20 representative of some or all employees in any unit. 21 such unit has been made pursuant to the provisions of this 21 (b) When an employee organization has been infor- 22 Act. 22 mally recognized, it shall, to the extent consistent with the 23 (c) Recognition, in whatever form accorded, shall not- 23 efficient and orderly conduct of the public business, be 24 (1) preclude any employee, regardless of employee 24 permitted to present to appropriate officials its views on 25 organization membership, from bringing matters of per- 25 matters of concern to its members, The agency need not, 8 9 1 however, consult with an employee organization SO rec- 1 with appropriate officials and at all times to present its views 2 ognized in the formulation of personnel or other policies with 2 thereon in writing. Formal recognition applies only on a 3 respect to such matters. 3 local basis. 4 SEC. 304. (a) An agency shall accord an employee 4 (c) For the purposes of this Act, "consultation" means 5 organization formal recognition as the representative of 5 a formal meeting between officials of the department or 6 its members in a local unit defined by the agency when- 6 agency with the designated representatives of the union or 7 (1) no other employee organization is qualified 7 organization, before any action or order is finalized. Such 8 for exclusive recognition as representative of employ- 8 consultation should permit sufficient time for the represent- 9 ees in the unit; 9 atives of the employee organizations to present formal and 10 (2) it is determined by the agency that the em- 10 proper agreement or objection to management and the 11 ployee organization has a substantial and stable mem- 11 reasons for such agreement or objections. If any objections 12 bership of no less than 10 per centum of the employees 12 are made they should receive consideration before final 13 in the unit; and 13 action is taken. 14 (3) the employee organization has submitted to 14 SEC. 305. (a) Except where otherwise required by 15 the agency a roster of its officers and representatives, 15 established practice, prior agreement, or special circum- 16 a copy of its constitution and bylaws, and a statement of 16 stances, no unit shall be established for purposes of exclusive 17 objectives. 17 recognition which includes— 18 (b) When an employee organization has been formally 18 (1) any managerial executive; 19 recognized, the agency, through appropriate officials, shall 19 (2) any employee engaged in Federal personnel 20 consult with such organization from time to time in the 20 work in other than a purely clerical capacity; 21 formulation and implementation of personnel policies and 21 (3) both supervisors, who officially evaluate the 22 practices, and matters affecting working conditions that are 22 performance of employees, and the employees whom 23 of concern to its members. Any such organization shall be 23 they supervise; or 24 entitled from time to time to raise such matters for discussion H.R. 7915-2 10 11 1 (4) both professional employees and nonprofes- 1 tices and working conditions, agencies shall have due regard 2 sional employees unless a majority of such professional 2 for the obligation imposed by this section. 3 employees vote for inclusion in such unit. 3 SEC. 306. (a) Any basic or initial agreement entered 4 (b) When an employee organization has been recog- 4 into with an employee organization as the exclusive repre- 5 nized as the exclusive representative of employees of an 5 sentative of employees in a unit must be approved by the 6 appropriate unit it shall be entitled to act for and to negotiate 6 head of the agency or any official designated by him. All 7 agreements covering all employees in the unit and shall be 7 agreements with such employee organizations shall also be 8 responsible for representing the interests of all such em- 8 subject to the following requirements, which shall be ex- 9 ployees. Such employee organization shall be given the 9 pressly stated in the initial or basic agreement and shall be 10 opportunity to be represented at discussions between man- 10 applicable to all supplemental, implementing subsidiary, or 11 agement and employees or employee representatives con- 11 informal agreements between the agency and the organiza- 12 cerning grievances, personnel policies and practices, or other 12 tion. 13 matters affecting general working conditions of employees in 13 (b) In the administration of all matters covered by 14 the unit. The agency and such employee organization, 14 the agreement, officials and employees are governed by the 15 through appropriate officials and representatives, shall meet 15 provisions of any existing or future laws, including policies 16 at reasonable times and confer with respect to personnel 16 set forth in the Federal Personnel Manual and agency regu- 17 policy and practices and matters affecting working condi- 17 lations, which may be applicable, and the agreement shall 18 tions, SO far as may be appropriate subject to law. This ex- 18 at all times be applied subject to such laws and regulations. 19 tends to the negotiation of an agreement, or any question 19 (c) Management officials of the agency retain the right, 20 arising thereunder, the determination of appropriate tech- 20 in accordance with applicable laws and regulations— 21 niques, consistent with the terms and purposes of this Act, to 21 (1) to direct employees of the agency; 22 assist in such negotiation, and the execution of a written con- 22 (2) to hire, promote, transfer, and retain employees 23 tract or agreement or understanding incorporating any agree- 23 in positions within the agency, and to suspend, demote, 24 ment reached by the parties. In exercising authority to make 24 discharge, or take other disciplinary action against 25 rules and regulations relating to personnel policies and prac- 25 employees; 12 13 1 (3) to relieve employees from duties because of lack 1 senting Federal management. The Board's actions will be 2 of work or for other legitimate reasons; 2 determined by majority vote. 3 (4) to maintain the efficiency of the Government 3 (b) The Federal Service Labor-Management Relations 4 operations entrusted to them; and ) 4 Board is authorized and directed to promulgate rules and 5 (5) to determine the methods, means, and per- 5 regulations not inconsistent with the provisions of this Act to 6 sonnel by which such operations are to be conducted. 6 be followed by the departments and agencies in developing 7 SEC. 307. Agreements entered into or negotiated in 7 and administering the labor-management programs provided 8 accordance with this Act with an employee organization 8 for herein. 9 which is the exclusive representative of employees in an 9 (c) Upon a finding by the Federal Service Labor-Man- 10 appropriate unit may contain provisions, applicable only to 10 agement Relations Board that a department or agency has 11 employees in the unit, concerning procedures for considera- 11 failed to develop an adequate labor-management program 12 tion of grievances. Such procedures shall conform to stand- 12 or has permitted administrative violations to occur, the Board 13 ards issued by the Department of Labor, and may not in any 13 shall assume responsibility for the development of an ade- 14 manner diminish or impair any rights which would otherwise 14 quate labor-management program or for the administration 15 be available to any employee in the absence of an agreement 15 of such a program in any such department or agency until 16 providing for such procedures. 16 satisfactory evidence is produced by the department or 17 TITLE IV-ADMINISTRATIVE PROCEDURES 17 agency that the deficiency has been eliminated. 18 AND APPEALS 18 SEC. 402. The Federal Service Labor-Management Re- 19 SEC. 401. (a) There is herewith established a Federal 19 lations Board assisted by the Civil Service Commission and 20 Service Labor-Management Relations Board to direct and 20 the Department of Labor shall supervise the preparation 21 supervise the implementation of this Act. The Chairman 21 of- 22 shall be appointed by the President with the advice and con- 22 (1) proposed standards of conduct for employee 23 sent of the Senate. One member shall be appointed by the 23 organizations; and 24 President from a list representing labor unions; and one 24 (2) a proposed code of fair labor practices in em- 25 member shall be appointed by the President from a list repre- 25 ployee-management relations in the Federal service ap- 14 15 1 propriate to assist in securing the uniform and effective 1 manner consistent with national security requirements and 2 implementation of the policies, rights, and responsibil- 2 considerations. When he deems it necessary in the national 3 ities described in this Act. 3 interest, and subject to prior notification to the Federal Serv- 4 SEC. 403. The head of each agency, in accordance with 4 ice Labor-Management Relations Board and to such condi- 5 the provisions of this Act and regulations prescribed by the 5 tions as he may prescribe, the head of any agency may 6 Civil Service Commission, shall extend to all employees in 6 suspend any provision of this Act (except section 403) with 7 the competitive civil service, rights identical in adverse ac- 7 respect to any agency installation or activity which is 8 tion cases to those provided preference eligibles under sec- 8 located outside of the United States. 9 tion 14 of the Veterans' Preference Act of 1944, as amended. 9 SEC. 405. In the case of disputes resulting from unre- 10 Each employee in the competitive service shall have the 10 solved grievances or from disagreement between unions and 11 right to appeal to the Civil Service Commission from an 11 departments or agencies on the policies enumerated in sec- 12 adverse decision of the administrative officer SO acting, such 12 tion 301 (b), the following procedures shall be followed- 13 appeal to be processed in an identical manner to that pro- 13 (a) Either party may invoke the services of the Federal 14 vided for appeals under section 14 of the Veterans' Prefer- 14 Mediation and Conciliation Service which shall immediately 15 ence Act. Any recommendation by the Civil Service Com- 15 assign one or more of its mediators to work with the parties 16 mission submitted to the head of an agency on the basis of 16 using every effort to bring the parties to an agreement. 17 an appeal by an employee in the competitive service shall 17 (b) If such efforts to bring about an amicable settle- 18 be complied with by the head of the agency. 18 ment through mediation and conciliation are unsuccessful, 19 SEC. 404. This Act (except section 403) shall not 19 then either party to the controversy is authorized to invoke 20 apply to the Federal Bureau of Investigation, the Central 20 the services of the Government Labor-Management Relations 21 Intelligence Agency, or any other agency, or to any office, 21 Panel hereinafter provided for. 22 bureau, or entity within an agency, primarily performing 22 (c) The President of the United States is authorized 23 intelligence, investigative, or security functions if the Fed- 23 and requested to immediately establish and maintain a Gov- 24 eral Service Labor-Management Relations Board deter- 24 ernment Labor-Management Relations Panel. This Panel 25 mines that the provisions of this Act cannot be applied in a 16 17 1 shall be composed of a Chairman, an Executive Secretary, - TITLE V-SETTLEMENT OF GRIEVANCES 2 and not less than four nor more than six additional members. 2 SEC. 501. (a) Any union of Government employees 3 The Chairman and the members of the Panel (exclusive of 3 shall have the right to present and process grievances inform- 4 the Executive Secretary who shall be appointed by the Panel 4 ally and to submit to arbitration unresolved grievances on 5 itself) shall be appointed by the President of the United 5 behalf of a member or members employed in any depart- 6 States and shall not be otherwise employed by the Govern- 6 ment, agency, activity, organization, function, or facility of 7 ment of the United States. 7 the executive branch of the United States Government. 8 (d) After its services have been invoked, the Panel 8: (b) Grievance as specifically used in this title includes 9 shall assist the parties in arriving at a settlement through 9 any dispute between any department, agency, activity, orga- 10 whatever voluntary methods and procedures it may consider 10 nization, function, or facility of the executive branch of the 11 to be appropriate. 11 United States Government by any union of Government em- 12 (e) If the Panel is unable to assist the parties to arrive 12 ployees on behalf of its individual members or group of mem- 13 at a settlement through other means, it shall promptly hold 13 bers concerning the effect, interpretation, or application of 14 hearings at which both parties shall be given a full oppor- 14 any law, rule, regulation, or provision of a collective-bargain- 15 tunity to present their case. 15 ing agreement, governing any condition of employment, in- 16 (f) After the hearings have concluded, the Panel shall 16 cluding but not limited to, working conditions, work proce- 17 with due dispatch render its decision in writing on the mat- 17 dures, automation, safety, transfers, job classification, details, 18 ters in dispute. This decison shall be promptly served upon 18 promotional procedures, demotions, rates of pay, reductions 19 the parties to the proceeding and shall be final and binding 19 in force, hours of work, and disciplinary actions. 20 upon all parties. 20 (c) Grievances shall be presented or taken up at any 21 (g) Government employees called upon by either party 21 level by the representative or representatives of the union of 22 to participate on its behalf in any phase of the Panel proceed- 22 Government employees representing the employee or em- 23 ing shall be free to do SO without suffering any loss in pay 23 ployees involved through established supervisory channels 24 and all such employees shall be free from restraint, coercion, 24 preferably starting with the lowest level of management in 25 interference, intimidation, or reprisal for their participation. 25 such Government organizations having competent authority 18 19 1 to make a decision on the subject of the grievance, up to the 1 written request of the union of Government employees rep- 2 designated chief supervisory officer concerned, as defined 2 resenting the employee or employees involved. Such writ- 3 from time to time by the appropriate administrative head of 3 ten request shall be directed to the principal administrative 4 the Government organization involved. 4 officer of the Government organization involved and shall 5 (d) Failing prompt and satisfactory adjustment, an ap- 5 specify the name and address of person selected by the union 6 peal can be taken by the union representing the employee 6 to serve on a three-member Board of Arbitration to be con- 7 or employees involved directly to the principal administra- 7 stituted to hear and decide the case. 8 tive officer of the Government organization involved for in- 8 (2) Within five working days after receipt of such 9 vestigation and settlement. 9 arbitration request, the principal administrative officer of 10 (e) Details of grievance procedures shall be established 10 the Government organization involved shall advise the union 11 by each Government organization in negotiation or consulta- 11 of the name and address of the person selected by the Gov- 12 tion with representatives of unions of Government employees 12 ernment organization to serve on such Board of Arbitration. 13 with members employed in such Government organization. 13 (3) The two arbitrators SO selected shall request the 14 Such procedures shall assure employees- 14 Secretary of Labor to furnish them with a panel of names 15 (1) the right to be represented through their union 15 of five arbitrators from which they will endeavor to select 16 of Government employees; 16 a third member who will serve as Chairman of the Board 17 (2) of fixed reasonable time limits for a decision 17 of Arbitration. If they cannot agree on the third member, 18 at each grievance step; 18 they shall then request the Secretary of Labor to name the 19 (3) of the right to call witnesses at each step of 19 third member. 20 the procedure; and 20 (4) The decision of the majority of the members of such 21 (4) of no loss of pay to the aggrieved employee 21 Board of Arbitration shall be final and binding. Each party 22 or employees, employee witnesses or employee represen- 22 shall be responsible for the costs of its members of the Board 23 tatives in the processing of such grievance. 23 of Arbitration. The fee and expenses of the Chairman and 24 (f) (1) Any grievance not satisfactorily settled in the 24 the general expenses incident to the arbitration shall be 25 grievance process shall be subject to arbitration upon the 25 paid by the Secretary of Labor from an arbitration fund 20 1 created for such purpose. No employee of the Government 2 organization involved in the arbitration shall suffer any loss 3 in pay because of his participation in the proceedings, either 4 as a witness, aggrieved employee, or employee representative. 5 TITLE VI-EFFECTIVE DATE 6 SEC. 601. This Act shall take effect as of the first day 7 of the second calendar month following the date of its 8 enactment. 91sT CONGRESS 1ST SESSION H. R. 7915 A BILL To provide for improved employee-management relations in the Federal service, and for other purposes. By Mr. DULSKI, Mr. OLSEN, Mr. NIx, Mr. CHARLES H. WILSON, Mr. WALDIE, Mr. WIL- LIAM D. FORD, Mr. HAMILTON, Mr. CUN- NINGHAM, and Mr. HAWKINS FEBRUARY 27, 1969 Referred to the Committee on Post Office and Civil Service 91sT CONGRESS 1ST SESSION H. R. 7917 IN THE HOUSE OF REPRESENTATIVES FEBRUARY 27, 1969 Mr. DULSKI introduced the following bill; which was referred to the Com- mittee on Post Office and Civil Service A BILL To provide for employee-management relations between the United States Government and its employees. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Federal Employee- 4 Management Relations Act". 5 TITLE I-PURPOSE 6 SEC. 101. It is the purpose and policy of this Act to 7 prescribe the legitimate rights of both the employees and 8 the United States Government in their relations and to 9 provide orderly and peaceful procedures for a settlement of 10 the disputes between the two and to prevent interference by 11 either with the legitimate rights of the other. I 2 3 1 TITLE II-FINDINGS AND POLICIES 1 TITLE I-DEFINITIONS 2 SEC. 201. (a) The denial by some governmental 2 SEC. 202. For the purposes of this Act- 3 agencies of the right to organize and the refusal by some 3 (a) The term "person" includes one or more individuals, 4 governmental agencies to accept the procedure of collective 4 labor organizations, and agencies of the United States 5 bargaining leads to employee unrest, which has the effect 5 Government. 6 of impairing the efficiency, safety, or operation of the gov- 6 (b) The term "employer" includes the United States 7 ernmental agencies and which deprive the employees of 7 Government or any agency thereof and includes any person a such agencies from receiving their just rights and benefits 8 acting as its agent directly or indirectly. 9 to which they are entitled. Experience has proven that 9 (c) The term "employee" shall include any employee 10 protection by law of the right of employees to organize 10 and shall not be limited to the employees of a particular 11 and bargain collectively safeguards the United States from 11 employer unless the Act states otherwise and shall include 12 certain recognized sources of unrest by encouraging prac- 12 any individuals whose work has ceased as a consequence of 13 tices fundamental to the friendly adjustment of industrial 13 or in connection with any unfair labor practice, and who has 14 disputes arising out of differences as to working conditions 14 not obtained any substantial or equivalent employment. 15 and by restoring security of bargaining power by the United 15 (d) The term "representatives" includes any labor 16 States Government and its employees. 16 organization. 17 (b) It is hereby declared to be the policy of the United 17 (e) The term "labor organization" means any organiza- 18 States to eliminate obstructions to free purposeful collective 18 tion in which employees participate and which exists for the 19 bargaining by encouraging the practice and procedure of 19 purpose of dealing with employers concerning grievances, 20 collective bargaining and by protecting the exercise by 20 labor disputes, hours of employment or conditions of work 21 workers of full freedom of association, self-organization and 21 and which does not condone strikes against the United States. 22 designation of representatives of their own choosing for the 22 (f) The term "unfair labor practice" means any unfair 23 purpose of negotiating the terms and conditions of their 23 labor practice listed in section 501. 24 employment or other mutual aid or protection. 24 (g) The term "Federal Employee Labor Relations 4 5 1 Board" means the Federal Employee Labor Relations Board 1 academic education or from an apprenticeship or 2 provided in section 301 of this Act. 2 from training in the performance of routine mental, 3 (h) The term "supervisor" means any employee having 3 manual, or physical processes; or 4 authority in the interest of the employer, to hire, transfer, 4 (2) any employee, who- 5 suspend, lay off, recall, promote, discharge, assign, reward, 5 (A) has completed the courses of specialized 6 rate, or discipline other employees, or responsibility to direct 6 intellectual instruction and study described in clause 7 them or adjust their grievances or effectively to recommend 7 (D) of subparagraph (1), and 8 such action, if in connection with the foregoing the exercise 8 (B) is performing related work under the su- 9 of such authority is not of a merely routine or clerical nature, 9 pervision of a professional person to qualify himself 10 but requires the use of independent judgment. 10 to become a professional employee as defined in sub- 11 (i) The term "professional employee" means- 11 paragraph (1) of this subsection. 12 (1) any employee engaged in work- 12 (j) The term "consultation" means meeting and discuss- 13 (A) predominantly intellectual and varied in 13 ing with representatives of labor organizations and responsi- 14 character as opposed to routine mental, manual, 14 ble representatives of employers to discuss the working con- 15 mechanical, or physical work; 15 ditions and agency regulations, and any and all other 16 (B) involving the consistent exercise of dis- 16 problems that affect the employees. 17 cretion and judgment in its performance; 17 TITLE III-FEDERAL EMPLOYEES LABOR 18 (C) of such a character that the output pro- 18 RELATIONS BOARD 19 duced or the result accomplished cannot be stand- 19 SEC. 301. (a) The Federal Employees Labor Relations 20 ardized in relation to a given period of time; 20 Board (hereafter called the Board) created by this Act 21 (D) requiring knowledge of an advanced type 21 shall be an agency of the United States, and shall consist of 22 in a field of science or learning customarily acquired 22 three members no more than two from the same political 23 by a prolonged course of specialized intellectual in- 23 party appointed by the President by and with the advice 24 struction and study in an institution of higher learn- 24 and consent of the Senate. The members shall be appointed 25 ing or a hospital, as distinguished from a general 25 for a term of five years. Any successors appointed to a 6 7 1 vacancy shall be appointed only for the unexpired term of the 1 employ any attorneys for the purpose of reviewing tran- 2 member whom he shall succeed. The President shall desig- 2 scripts of hearings or preparing drafts of opinions except 3 nate one member to serve as Chairman of the Board. Any 3 that any attorney employed for assignment as a legal as- 4 member of the Board may be removed by the President, 4 sistant to any Board member may for such Board review 5. upon notice and hearing, for neglect of duty or malfeasance 5 such transcripts and prepare such drafts. No trial exam- 6 in office, but for no other cause. 6 iner's report shall be reviewed, either before or after its 7 (b) A vacancy in the Board shall not impair the right 7 publication, by any person other than a member of the 8 of the remaining members to exercise all of the power of 8 Board or his legal assistant and no trial examiner shall 9. the Board, and two members of the Board shall, at all 9 advise or consult with the Board with respect to excep- 10 times, constitute a quorum of the Board. The Board shall 10 tions taken to his findings, rulings, or recommendations. 11 have an official seal. which shall be judicially noticed. 11 The Board may establish or utilize such regional, local, 12 (c) The Board shall at the close of each fiscal year 12 or other agencies, and utilize such voluntary and uncom- 13 make a. report in writing to Congress and to the President 13 pensated services, as may from time to time be needed. 14. stating in detail the cases it has heard, the decisions it has 14 Attorneys appointed under this section may, at the direc- 15 rendered, the names, salaries, and duties of all employees 15 tion of the Board, appear for and represent the Board in 16 and officers in the employ or under the supervision of the 16 any case in court. 17 Board and an account of all moneys it has disbursed. 17 (b) All the expenses of the Board, including all neces- 18 SEC. 302. (a) Each member of the Board shall re- 18 sary traveling and subsistence expenses outside the District 19 ceive a salary of $27,000 a year, except the chairman 19 of Columbia incurred by the members or employees of the 20 shall receive $28,000, shall be eligible for reappointment, 20 Board, shall be allowed and paid on the presentation of 21 and shall not engage in any other business, vocation, or 21 itemized vouchers therefor approved by the Board or by an 22 employment. The Board shall appoint the Executive Secre- 22 individual it designates for that purpose. 23 tary and such attorneys, and examiners and such other 23 SEC. 303. The principal office of the Board shall be 24, employees as it may from time to time find necessary for 24 in the District of Columbia, but it may meet and exercise 25 the proper performance of its duties. The Board may not 25 any or all of its powers at any time or place. The Board 8 9 1 may, by one or more of its members or by such agents as 1 to rules and regulations made and published by the 2 it may designate, prosecute any inquiry necessary to its 2 Board pursuant to section 304 the employer shall not be 3 functions in any part of the United States. A member who 3 prohibited from permitting employees to confer with 4 participates in such inquiry shall not be disqualified from 4 him during working hours without loss of time or pay; 5 subsequently participating in a decison of the Board in the 5 (3) to discriminate in regard to hire or tenure of 6 same case. 6 employment or any term or condition of employment or 7 SEC. 304. The Board shall have authority from time to 7 encourage or discourage membership in any labor 8 time to make, amend, and rescind, in the manner prescribed 8 organization; 9 by the Administrative Procedure Act, such rules and regu- 9 (4) to discharge or discriminate against an 10 lations as may be necessary to carry out the provisions of 10 employee because he had filed charges or given testi- 11 this Act. 11 mony under this Act; and 12 TITLE IV-RIGHTS OF EMPLOYEES 12 (5) to refuse to bargain collectively (including 13 SEC. 401. Employees shall have the right to self-orga- 13 bargaining on agency regulations) with the representa- 14 nization, form, join, or assist labor organizations, to bargain 14 tives of its employees subject to the provisions of this 15 collectively through representatives of their own choosing, 15 Act. 16 and shall have the right to refrain from such activities. 16 (b) It shall be an unfair labor practice for a labor orga- 17 TITLE V-UNFAIR LABOR PRACTICES 17 nization or its agents- 18 SEC. 501. (a) It shall be an unfair labor practice for 18 (1) to restrain or coerce employees in the exercis- 19 an employer- 19 ing of the rights guaranteed in section 401: Provided, 20 (1) to interfere with, restrain or coerce employees 20 That this paragraph shall not impair the right of- 21 in the exercise of the rights guaranteed in section 401 21 (A) labor organizations to prescribe their own 22 of this Act; 22 rules with respect to the acquisition or retention of 23 (2) to dominate or interfere with the formation or 23 membership therein; or 24 administration of any labor organization or contribute 24 (B) an employer in the selection of his repre- 25 financial or other support to it, provided that subject H.R. 7917-2 10 11 1 sentatives for the purpose of collective bargaining or 1 opportunity to be present at such adjustment and any meet- 2 the adjustment of grievances; 2 ing or hearing in connection with same. 3 (2) to refuse to bargain collectively with an 3 (b) The Board shall decide in each case whether, in 4 employer, provided it is the representative of his employ- 4 order to assure to employees the fullest freedom in exercising 5 ees subject to the provisions of section 601. 5 the rights guaranteed by this Act, the unit appropriate for 6 TITLE VI-REPRESENTATIVES AND ELECTIONS 6 the purpose of collective bargaining shall be the plant unit, 7 SEC. 601. (a) Representatives designated or selected for 7 or craft unit, or functional unit, or subdivision thereof: Pro- 8 the purpose of collective bargaining by the majority of the 8 vided, That the Board shall not- 9 employees in a unit appropriate for such purposes, shall be 9 (1) decide that any unit is appropriate for such 10 the exclusive representatives of all the employees in such 10 purposes if such unit includes both professional em- 11 unit for the purpose of collective bargaining in respect to, 11 ployees and employees who are not professional em- 12 but not limited to, such matters as pay policies and regula- 12 ployees unless a majority of such professional employees 13 tions, safety, training, labor-management cooperation, em- 13 vote for inclusion in such unit; or 14 ployee services, methods of adjusting grievances, appeals on 14 (2) decide that any craft unit is inappropriate for 15 adverse actions of all types, granting of leave, promotion 15 such purposes on the ground that a different unit has 16 plans, demotion practices, reduction-in-force practices, hours 16 been established by a prior Board determination, unless 17 of work, ranking and evaluation of positions and jobs, and 17 a majority of the employees in the proposed craft unit 18 mediation and arbitration of disputes: Provided, That any in- 18 vote against separate representation. 19 dividual employee or a group of employees shall have the 19 (c) Wherever a petition shall have been filed, in ac- 20 right at any time to present grievances to their employer 20 cordance with such regulations as may be prescribed by 21 and to have such grievances adjusted, without the inter- 21 the Board- 22 vention of the bargaining representative, as long as the ad- 22 (1) by a labor organization acting in the employees' 23 justment is not inconsistent with the terms of a collective- 23 behalf alleging that a substantial number of employees 24 bargaining contract or agreement then in effect: Provided 24 wish to be represented for collective bargaining and that 25 further, That the bargaining representative has been given 12 13 1 their employer declines to recognize their representative 1 of a consent election in conformity with regulations and 2 as the representative defined in section 202, or 2 rules or decisions of the Board. 3 (2) by an employer, alleging that a labor organi- 3 (f) In determining whether a unit is appropriate for 4 zation has presented to him a claim to be recognized 4 the purposes specified in subsection (a) of this section, the 5 as the representative defined in section 202; 5 extent to which the employees have organized shall not be 6 the Board shall investigate such petition and if it has reason- 6 controlling. 7 able cause to believe that a question of representation exists 7 (g) Whenever an order of the Board made pursuant 8 shall provide for an appropriate hearing upon due notice. 8 to section 701 is based in whole or in part upon facts certi- 9 Such hearing may be conducted by an officer or employee 9 fied following an investigation pursuant to subsection (c) of 10 of the Board who shall not make any recommendations with 10 this section and there is a petition for the enforcement or re- 11 respect thereto. If the Board finds upon the record of such 11 view of such order, such certification and the record of such 12 hearing that such a question of representation exists, it shall 12 investigation shall be included in the transcript of the en- 13 direct an election by secret ballot and shall certify the results 13 tire record required to be filed under section 801, and there- 14 thereof. 14 upon the decree of the court enforcing, modifying, or set- 15 (d) No election shall be directed in any bargaining unit 15 ting aside in whole or in part the order of the Board shall 16 or any subdivision within which, in the preceding twelve- 16 be made and entered upon the pleadings, testimony, and 17 month period, a valid election shall have been held. In any 17 proceedings set forth in such transcript. 18 election where none of the choices on the ballot receives a 18 (h) No election shall be conducted pursuant to this 19 majority of the votes cast a runoff shall be conducted, the 19 subsection in any bargaining unit or any subdivision within 20 ballot providing for a selection between the two choices re- 20 which, in the preceding twelve-month period, a valid election 21 ceiving the largest and second largest number of valid votes 21 shall have been held. 22 cast in the election. 22 (i) Nothing in this section or the Act shall prevent an 23 (e) Nothing in this section shall be construed to pro- 23 employer from granting a labor organization voluntary rec- 24 hibit the waiving of hearings by stipulation for the purpose H.R. 7917-3 14 15 1 ognition based upon the authorization of a majority of the 1 charge. Any such complaint may be amended by the mem- 2 employees in the unit. 2 ber, agent, or agency conducting the hearing or the Board 3 TITLE VII-PREVENTION OF UNFAIR LABOR 3 in its discretion at any time prior to the issuance of an order 4 PRACTICES 4 based thereon. The person SO complained of shall have the 5 SEC. 701. (a) The Board is empowered, as hereinafter 5 right to file an answer to the original or amended complaint 6 provided, to prevent any person from engaging in any 6 and to appear in person or otherwise and give testimony at 7 unfair labor practice (listed in section 501). This power 7 the place and time fixed in the complaint. In the discretion 8 shall not be affected by any other means of adjustment or 8 of the member, agent, or agency conducting the hearing or 9 prevention that has been or may be established by agreement. 9 the Board, any other person may be allowed to intervene 10 (b) Whenever it is charged that any person has engaged 10 in the said proceeding and to present testimony. Any such 11 in or is engaging in any such unfair labor practice, the 11 proceeding shall, SO far as practicable, be conducted in ac- 12 Board, or any agent or agency designated by the Board for 12 cordance with the rules of evidence applicable in the district 13 such purposes, shall have power to issue and cause to be 13 courts of the United States under the rules of civil procedure 14 served upon such person a complaint stating the charges in 14 for the district courts of the United States, adopted by the 15 that respect, and containing a notice of hearing before the 15 Supreme Court of the United States pursuant to the Act of 16 Board or a member thereof, or before a designated agent 16 June 19, 1934 (28 U.S.C. 723-B, 723C). 17 or agency, at a place therein fixed, not less than five days 17 (c) The testimony taken by such member, agent, or 18 after the serving of said complaint: Provided, That no com- 18 agency of the Board shall be reduced to writing and filed 19 plaint shall issue based upon any unfair labor practice occur- 19 with the Board. Thereafter, in its discretion, the Board 20 ring more than six months prior to the filing of the charge 20 upon notice may take further testimony or hear argument. 21 with the Board and the service of a copy thereof upon the 21 If upon the preponderance of the testimony taken the Board 22 person against whom such charge is made, unless the person 22 shall be of the opinion that any person named in the com- 23 aggrieved thereby was prevented from filing such charge by 23 plaint has engaged in or is engaging in any such unfair 24 reason of service in the Armed Forces, in which event the 24 labor practice, then the Board shall state its findings of 25 six-month period shall be computed from the day of his dis- 25 fact and shall issue and cause to be served on such person 16 17 1 an order requiring such person to cease and desist from 1 for just cause. In case the evidence is presented before a 2 such unfair labor practice, and to take such affirmative 2 member of the Board, or before an examiner or examiners 3 action including reinstatement of employees with or without 3 thereof, such member, or such examiner or examiners, as 4 backpay, as will effectuate the policies of this Act: Pro- 4 the case may be, shall issue and cause to be served on 5 vided, That where an order directs reinstatement of an 5 the parties to the proceeding a proposed report, together 6 employee, backpay may be required of the employer or 6 with a recommended order, which shall be filed with the 7 labor organization, as the case may be, responsible for the 7 Board, and if no exceptions are filed within twenty days 8 discrimination suffered by him: And provided further, That 8 after service thereof upon such parties, or within such fur- 9 in determining whether a complaint shall issue alleging a 9 ther period as the Board may authorize, such recommended 10 violation of section 501, and in deciding such cases, the 10 order shall become the order of the Board and become ef- 11 same regulations and rules of decision shall apply irre- 11 fective as therein prescribed. 12 spective of whether or not the labor organization affected 12 (d) Until the record in a case shall have been filed in 13 is affiliated with a labor organization national or interna- 13 a court, as hereinafter provided, the Board may at any time, 14 tional in scope. Such order may further require such person 14 upon reasonable notice and in such manner as it shall deem 15 to make reports from time to time showing the extent to 15 proper, modify or set aside, in whole or in part, any finding 16 which it has complied with the order. If upon the pre- 16 or order made or issued by it. 17 ponderance of the testimony taken the Board shall not 17 (e) The Board shall have power to petition any court 18 be of the opinion that the person named in the com- 18 of appeals of the United States, or if all the courts of appeals 19 plaint has engaged in or is engaging in any such unfair 19 to which application may be made are in vacation, any dis- 20 labor practice, then the Board shall state its findings of 20 trict court of the United States, within any circuit or district, 21 fact and shall issue an order dismissing the said com- 21 respectively, wherein the unfair labor practice in question 22 plaint. No order of the Board shall require the reinstate- 22 occurred or wherein such person resides or transacts business, 23 ment of any individual as an employee who has been 23 for the enforcement of such order and for appropriate tem- 24 suspended or discharged, or the payment to him of any 24 porary relief or restraining order, and shall file in the court 25 backpay, if such individual was suspended or discharged 25 the record in the proceedings, as provided in section 2112 of 18 19 1 title 28, United States Code. Upon filing of such petition, the 1 questions of fact if supported by substantial evidence on the 2 court shall cause notice thereof to be served upon such per- 2 record considered as a whole shall be conclusive, and shall 3 son, and thereupon shall have jurisdiction of the proceeding 3 file its recommendations, if any, for the modification or set- 4 and of the question determined therein, and shall have power 4 ting aside of its original order. Upon the filing of the record 5 to grant such temporary relief or restraining order as it deems 5 with it the jurisdiction of the court shall be exclusive and its 6 just and proper, and to make and enter a decree enforcing, 6 judgment and decree shall be final, except that the same shall 7 modifying, and enforcing as SO modified, or setting aside in 7 be subject to review by the appropriate United States court 8 whole or in part the order of the Board. No objection that 8 of appeals if application was made to the district court as 9 has not been urged before the Board, its member, agent, or 9 hereinabove provided, and by the Supreme Court of the 10 agency, shall be considered by the court, unless the failure 10 United States upon writ of certiorari or certification as pro- 11 or neglect to urge such objection shall be excused because of 11 vided in section 1254 of title 28. 12 extraordinary circumstances. The findings of the Board with 12 (f) Any person aggrieved by a final order of the Board 13 respect to questions of fact if supported by substantial evi- 13 granting or denying in whole or in part the relief sought 14 dence on the record considered as a whole shall be conclu- 14 may obtain a review of such order in any circuit court of 15 sive. If either party shall apply to the court for leave to 15 appeals of the United States in the circuit wherein the unfair 16 adduce additional evidence and shall show to the satisfaction 16 labor practice in question was alleged to have been engaged 17 of the court that such additional evidence is material and that 17 in or wherein such person resides or transacts business, or in 18 there were reasonable grounds for the failure to adduce such 18 the United States Court of Appeals for the District of 19 evidence in the hearing before the Board, its member, agent, 19 Columbia, by filing in such court a written petition praying 20 or agency, the court may order such additional evidence to 20 that the order of the Board be modified or set aside. A copy 21 be taken before the Board, its member, agent, or agency, and 21 of such petition shall be forthwith transmitted by the clerk 22 to be made a part of the record. The Board may modify its 22 of the court to the Board, and thereupon the aggrieved party 23 findings as to the facts, or make new findings, by reason of 23 shall file in the court the record in the proceeding, certified 24 additional evidence SO taken and filed, and it shall file such 24 by the Board, as provided in section 2112 of title 28, United 25 modified or new findings, which findings with respect to 20 21 1 States Code. Upon the filing of such petition, the court shall 1 peditiously, and if possible within ten days after they have 2 proceed in the same manner as in the case of an application 2 been docketed. 3 by the Board under subsection (e) of this section, and 3 (j) The Board shall have power, upon issuance of a 4 shall have the same jurisdiction to grant to the Board such 4 complaint as provided in subsection (b) charging that any 5 temporary relief or restraining order as it deems just and 5 person has engaged in or is engaging in an unfair labor 6 proper, and in like manner to make and enter a decree en- 6 practice, to petition any district court of the United States 7 forcing, modifying, and enforcing as SO modified, or setting 7 (including the District Court of the United States for the 8 aside in whole or in part the order of the Board; the findings 8 District of Columbia), within any district wherein the un- 9 of the Board with respect to questions of fact if supported by 9 fair labor practice in question is alleged to have occurred or 10 substantial evidence on the record considered as a whole 10 wherein such person resides or transacts business, for appro- 11 shall in like manner be conclusive. 11 priate temporary relief or restraining order. Upon the filing 12 (g) The commencement of proceedings under subsection 12 of any such petition the court shall cause notice thereof to 13 (e) or (f) of this section shall not, unless specifically 13 be served upon such person, and thereupon shall have juris- 14 ordered by the court, operate as a stay of the Board's order. 14 diction to grant to the Board such temporary relief or 15 (h) When granting appropriate temporary relief or a 15 restraining order as it deems just and proper. 16 restraining order, or making and entering a decree enforcing, 16 TITLE VILI-INVESTIGATORY POWERS 17 modifying, and enforcing as SO modified, or setting aside in 17 SEC. 801. For the purpose of all hearings and investi- 18 whole or in part an order of the Board, as provided in this 18 gations, which, in the opinion of the Board are necessary 19 section, the jurisdiction of courts sitting in equity shall not 19 and proper for the exercise of the powers vested in it by 20 be limited by the Act entitled "An Act to amend the 20 section 601 and section 701- 21 Judicial Code and to define and limit the jurisdiction of 21 (1) The Board, or its duly authorized agents or 22 courts sitting in equity, and for other purposes," approved 22 agencies, shall at all reasonable times have access to, for 23 March 23, 1932 (U.S.C., Supp. VII, title 29, secs. 101- 23 the purpose of examination, and the right to copy any 24 115) 24 evidence of any person being investigated or proceeded 25 (i) Petitions filed under this Act shall be heard ex- 25 against that relates to any matter under investigation or 22 23 1 in question. The Board, or any member thereof, shall 1 tory or possession, or the District Court of the United 2 upon application of any party to such proceedings, forth- 2 States for the District of Columbia, within the jurisdic- 3 with issue to such party subpenas requiring the attend- 3 tion of which said person guilty of contumacy or refusal 4 ance and testimony of witnesses or the production of any 4 to obey is found or resides or transacts business, upon 5 evidence in such proceeding or investigation requested in 5 application by the Board shall have jurisdiction to issue 6 such application. Within five days after the service of a 6 to such person an order requiring such person to appear 7 subpena of any person requiring the production of any 7 before the Board, its member, agent, or agency, there 8 evidence in his possession or under his control, such per- 8 to produce evidence if SO ordered, or there to give 9 son may petition the Board to revoke, and the Board 9 testimony touching the matter under investigation or in 10 shall revoke, such subpena if in its opinion the evidence 10 question; and any failure to obey such order of the 11 whose production is required does not relate to any mat- 11 court may be punished by said court as a contempt 12 12 ter under investigation, or any matter in question in such thereof. 13 13 proceedings, or if in its opinion such subpena does not (3) No person shall be excused from attending 14 14 describe with sufficient particularity the evidence whose and testifying or from producing books, records, cor- 15 15 production is required. Any member of the Board, or respondence, documents, or other evidence in obedience 16 16 any agent or agency designated by the Board for such to the subpena of the Board, on the ground that the 17 17 purposes may administer oaths and affirmations, examine testimony or evidence required of him may tend to 18 18 witnesses, and receive evidence. Such attendance of wit- incriminate him or subject him to a penalty or forfeiture; 19 19 nesses and the production of such evidence may be re- but no individual shall be prosecuted or subjected to 20 20 quired from any place in the United States or any terri- any penalty or forfeiture for or on account of any trans- 21 21 tory or possession thereof, at any designated place of action, matter, or thing concerning which he is com- 22 22 hearing. pelled, after having claimed his privilege against self- 23 23 (2) In case of contumacy or refusal to obey a incrimination, to testify or produce evidence, except 24 24 subpena issued to any person, any district court of the that such individual SO testifying shall not be exempt 25 United States or the United States courts of any terri- 24 25 1 from prosecution and punishment for perjury committed 1 nish the Board, upon its request, all records, papers, and 2 in S0 testifying. 2 information in their possession relating to any matter 3 3 (4) Complaints, orders, and other process and pa- before the Board. 4 4 pers of the Board, its member, agent, or agency, may be SEC. 802. Any person who shall willfully resist, prevent, 5 served either personally or by registered mail or by tele- 5 impede, or interfere with any member of the Board or any 6 graph or by leaving a copy thereof at the principal office 6 of its agents or agencies in the performance of duties pur- 7 or place of business of the person required to be served. 7 suant to this Act shall be punished by a fine of not more 8 The verified return by the individual SO serving the same 8 than $5,000 or by imprisonment for not more than one 9 setting forth the manner of such service shall be proof 9 year, or both. 10 10 TITLE IX-LIMITATIONS of the same, and the return post office receipt or tele- 11 11 graph receipt therefore when registered and mailed or SEC. 901. If any provision of this Act, or the application 12 telegraphed as aforesaid shall be proof of service of the 12 of such provision to any person or circumstances, shall be 13 same. Witnesses summoned before the Board, its mem- 13 held invalid, the remainder of this Act, or the application 14 ber, agent, or agency, shall be paid the same fees and 14 of such provisions to persons or circumstances other than 15 mileage that are paid witnesses in the courts of the 15 those as to which it is held invalid, shall not be affected 16 United States, and witnesses whose depositions are taken 16 thereby. 17 and the persons taking the same shall severally be en- 17 TITLE X-SETTLEMENT OF IMPASSES 18 titled to the same fees as are paid for like services in the 18 SEC. 1001. Any employer and any labor organization 19 courts of the United States. 19 which cannot agree upon the terms and conditions of a col- 20 (5) All process of any court to which application 20 lective bargaining agreement within a reasonable time and 21 may be made under this Act may be served in the ju- 21 having reached an impasse such dispute shall be submitted 22 dicial district wherein the defendant or other person re- 22 to mediation. The mediators shall be furnished by the Federal 23 quired to be served resides or may be found. 23 Mediation and Conciliation Service at no cost to either the 24 (6) The several departments and agencies of the 24 employer or the labor organization. The mediators shall at- 25 Government, when directed by the President, shall fur- 25 tempt to amicably settle the matter with expedition. 26 27 1 TITLE XI-ARBITRATION 1 be applied in a manner consistent with national security 2 SEC. 1101. If mediation does not resolve an impasse 2 requirements and considerations. 3 or dispute upon the terms and conditions of a collective- 3 TITLE XIV-FUNDING 4 bargaining agreement, such impasse or dispute shall be 4 SEC. 1401. There is hereby authorized such sums as 5 submitted to arbitration under rules and procedures pre- 5 are necessary to carry out the functions and purposes of this 6 scribed by the Board. The arbitration award shall be binding 6 Act. 7 on both parties. Any arbitration award may be modified 8 or rejected by mutual written agreement of both parties. 9 The parties shall share equally the cost of arbitration. 10 TITLE XII-DUES DEDUCTION AUTHORIZATION 11 SEC. 1201. Any labor organization which is designated 12 by the employees as the collective-bargaining representa- 13 tives or any labor organization which is recognized as the 14 bargaining representative shall have the right to submit 15 dues deduction authorizations to the employer which shall 16 be honored without charge by the employer. The employer 17 may establish regulations which would be negotiable as to 18 the form and length of irrevocability. 19 TITLE XIII-EXCLUSIONS 20 SEC. 1301. This Act shall not apply to the Federal 21 Bureau of Investigation, the Central Intelligence Agency, 22 or any other agency, or to any office, bureau, or entity 23 within an agency, primarily performing intelligence, inves- 24 tigative, or security functions if the President of the United 25 States determines that the provisions of this Act cannot 91sT CONGRESS 1ST SESSION H. R. 7917 A BILL To provide for employee-management relations between the United States Government and its employees. By Mr. DULSKI FEBRUARY 27, 1969 Referred to the Committee on Post Office and Civil Service April 25, 1969 / Volume 8, Number 8 HERE'S THE ISSUE Published by the Legislative Department of the Chamber of Commerce of the United States, Washington, D.C. 20006 Editor: Wallace Davies Postal Modernization The Post Office is Big Business-and Getting Bigger It is Time We Put Its Operations on a Business-like Basis President Nixon has made it clear that a "comprehensive Complete Breakdown Possible reorganization of the Post Office Department" will be a Today, three-quarters of a million employees work in major goal of his Administration, and the House Post Office some 44,000 postal facilities in virtually every city, town and Civil Service Committee, without awaiting his detailed and hamlet in the United States. This year, postal em- plans, has opened hearings on the subject. ployees will use 72,000 vehicles to transport 82 billion The House hearings promise to extend over several pieces of mail between these facilities. Within a decade, that months. Widespread agreement on the need for change, figure will soar to 110 billion pieces of mail. unfortunately, does not mean agreement on the character Physically, organization-wise, or financially, the Post of the change. The path that leads to postal modernization Office is not equipped to handle that fantastic volume of is beset by many roadblocks. mail with any efficiency. These roadblocks, it is safe to say, do not arise because The Commission recalled: there is great public enthusiasm for the way the Post Office In October 1966, the 13-story, 60-acre Chicago Post is now being operated or from any general desire to let well Office - the world's largest postal facility - stopped enough alone. functioning. Breakdowns in management authority and The President's Commission of Postal Reorganization, in physical plant paralyzed service in one of the Nation's biggest cities and delayed millions of cross-country commonly called the Kappel Commission after the name of letters and parcels normally routed through Chicago. its Chairman, former AT&T Chairman Frederick R. Kappel, The crisis lasted three weeks. reported that it found a pattern of public concern over the The backlog of mail exceeded 10 million pieces. quality of mail service. Delayed letters, erroneous deliveries, Railroad cars and trailer trucks clogged approaches to damaged parcels, and lost magazines are everyday experi- the post office. Millions of citizens were inconvenienced; hundreds of businesses suffered financial losses. With the ences. help of a Department task force vested with special Moreover, the Commission found that those who used authority by the Postmaster General, service was grad- the mails the most were the most critical of the service. It ually restored. concluded: "The lesson is clear; from a distance, the mail It then reached this sobering conclusion: service is not bad, but the more you use and depend on it, The facility and management problems of Chicago, in the less satisfactory it seems." varying degrees, exist in post offices all over the country. One's depth of concern over the plight of the Post Office In the Commission's judgment, particularly with mail does, in fact, seem to be in direct proportion to one's volumes continuing to increase, the causes which pro- knowledge of its operations. People who delve deeply into duced Chicago may well produce the same results elsewhere. its workings are likely to echo Postmaster Blount's state- ment that he knew conditions were bad, but did not realize The Post Office is still the basic medium of communi- how bad. cations even in our electronic age. Business, which con- The experts in the field calmly use alarming words. tributes three-fourths of the mail volume, would be Former Postmaster General O'Brien referred to the "race paralyzed if the system ever broke down completely. with catastrophe." The symptoms of sickness are clear and visible. The The Kappel Commission Report uses the word "crisis" experts say it is time to move boldly toward a cure. That repeatedly. It says: means dealing with the causes. The United States Post Office faces a crisis. Each day it Management slips further behind the rest of the economy The basic cause is not difficult to locate. The Commis- - in service ****** in efficiency sion traced present difficulties in the operation of the Post - in meeting its responsibilities as an employer. Office Department to one thing - management. Each year it operates at a huge financial loss. In fairness to the thousands of dedicated men and women, however, who have made the Post Office Depart- means, in many cases, improved technology is not fully it would be given direct access to its revenues and have ment function as well as it has under trying conditions, it utilized. authority to borrow funds in its own name to finance PRODUCTIVITY AND SALARY TRENDS should be pointed out in the same breath that this, Red Tape. When tax funds are intermingled with postal (Post Office and U.S. Industry, 1956-1967) modern facilities. essentially, is a failure of method - not of men. receipts a host of regulations governing appropriated funds The Postal Service over-all - should be self-sup- 1956 57 58 59 60 61 62 63 64 65 66 67 160 This point was emphasized time and time again. For become effective. The Commission found: "a hodge-podge porting. If postal managers were given the authority and the AVERAGE SALARY U.S. POST OFFICE example: of postal laws 200 years in the making constrains manage- financial means to put modern management and technology "The nominal managers of the postal service do not have rial judgment and initiative." to work, the Commission said, improved methods and 150 the authority to run the post office." Political Appointments. The Commission said diplo- mechanization could save over $1 billion a year. "With this AVERAGE SALARY "The postal system is not managed, in the accepted matically: "Because of the system for selecting postal savings, deficit financing should become unnecessary within U.S. INDUSTRY sense of the word." managers, normal line relationships between them and top several years after the Corporation gets under way." 140 "The absence of responsible management having normal management are impossible. In working toward increased efficiency and productivity, PRODUCTIVITY U.S. INDUSTRY operating authority, is, we believe, the primary cause of the the Report said, management must have access to better Proposed Legislation 130 deficiencies." cost figures. The key words, perhaps, are "responsibility" and "au- When Chairman Dulski (D-N.Y.), of the House Post The first essential for raising Post Office productivity thority." The men who manage the post office have little of Office and Civil Service Committee opened hearings over is a management information network which reports 120 either. Because the Postmaster General is a member of the the objections of Postmaster General Blount, who wanted promptly and accurately the real costs of operating the Cabinet and funds to run it are contained in the Budget, the more time to analyze the situation and make recommen- postal system. Next, managers and workers alike must be dations, two major approaches had been advanced. motivated toward cost-conscious operation. Normal lines ultimate source of authority is the Congress. 110 One approach, as embodied in H.R. 1382 (Udall, of management control are an essential part of such In 1967, the Chairman of the House Postal Appropri- D-Ariz.), essentially follows the Kappel Commission recom- motivation. PRODUCTIVITY ations Subcommittee summarized the situation in this way Postal management, too, needs a modern cost U.S. POST OFFICE for the Postmaster General: mendations; the second approach, as embodied by H.R. 4 accounting system, one that shows, by each postal 100 (Dulski, D-N.Y.), would drastically change many aspects of function, how costs vary with each class of service, how General would this be a fair summary: that at the present time, as the manager of the Post Office Post Office operations, but would retain it as an executive much each class contributes to peakload and the size of 90 Department, you have no control over your workload, department. the remaining pool of institutional costs. While data on postal costs are unreliable, information you have no control over the rates of revenue, you have Sources: Post Office salary, Post Office Department Annual Report, various no control over the pay of employees that you employ, Udall Bill (H.R. 1382) on the market for postal services is nonexistent. Only years; Post Office productivity (weighted), Robert R. Nathan Associates; U.S. when reliable cost and market information is available Industry data, Economic Report of the President, February 1968. you have very little control over the conditions of the The Kappel Commission made five principal recom- service of those employees; you have virtually no will it be possible to tell which class is and is not "paying mendations: control, by the nature of it, of your physical facilities, its own way." From Towards Postal Excellence, The Report of the President's and you have only a limited control, at best, over the 1. That a Postal Corporation owned entirely by the The Commission recommended that the Post Office Commission on Postal Organization. U.S. Government Printing Office, Washington, D.C. 1968 transportation facilities that you are compelled to Federal Government be chartered by Congress to develop a full-time marketing and sales capacity to respond use all of which adds up to a staggering amount of "no operate the postal service of the United States on a better to the service needs of the public and to offer a control" in terms of the duties you have to perform. self-supporting, business-like basis. greater variety of services; that it study the feasibility of My studies indicate that every major postal reform The Kappel Commission said bluntly: the legislative that a non-profit corporation might achieve can be done 2. That the Corporation take immediate steps to im- providing two services, one of which would assure overnight more quickly and effectively within the present frame- process makes most managerial decisions for the Post prove the quality and kinds of services offered, the delivery, and the other which would provide slower, but work of Government. Most important, I am convinced Office." And, then, perhaps, with some understatement, it means by which service is provided and the physical dependable delivery; that several long-standing restrictions that these can be done without the inevitable disruption added: "When key business decisions are made in this way, conditions under which postal employees work. on procurement of highway and air transportation be and turmoil involved in a changeover to a corporation. they do not necessarily bring about what is best for the 3. That all appointments to, and promotions within, the removed; and that special management functions of the He declared that three basic changes are needed: postal system and its customers. This process, however postal system be made on a nonpolitical basis. Inspection Service be re-assigned to the Corporation. (1) giving top management the authority it needs; (2) conscientiously and well it is followed, is simply not a 4. That present postal employees be transferred, with The only substantial difference between the Udall bill restructuring employee-management relations; and (3) pro- substitute for sound decision-making in a business con- their accrued Civil Service benefits, to a new career and the Commission recommendations is that the bill viding the Department with "updated, business-type fi- text." service within the Postal Corporation. requires postmasters to be resident of the areas served by nancing." This combination of "no control management" and Congressional authority, the Commission found, results in 5. That the Corporation's Board of Directors, after the post offices they are named to head. The Kappel To ease its financing problems, the Department should hearings by expert rate commissioners, establish Commission criticized a similar existing requirement on the be given "reasonable flexibility" in the use of the revenues three basic characteristics which prevent the Post Office from developing a sound management system. postal rates, subject to Congressional veto within 60 grounds that it limits the number of available postmaster it generates, and should be allowed to finance both the days. Congress would establish broad criteria for rate candidates and prevents the transfer of successful post- construction of its own buildings and the acquisition of Financing Problems. The fact that the Post Office policy but the details would be "left to the corpora- masters in small offices to larger offices or to regional necessary operating equipment." Department is financed in part by funds from the Treasury in regular appropriations and that tax revenues are called on tion to determine. offices. To deal with these financing problems, Representative Dulski would set up a new Postal Modernization Authority. to make up the deficit has many unfortunate results. More specifically, the Commission's recommendations The Dulski Bill (H.R. 4) The Authority would be headed by the Postmaster It means that the Post Office must compete with many included: The second approach to the problem of postal moderni- General and would act as a holding company, subject to the other National priority projects to obtain funds for capital The Corporation would be directed by a nine-member zation is H.R. 4, sponsored by Chairman Dulski (D-N.Y.) of Government Corporation Control Act. improvements. Congress is always tempted to cut the post Board, six part-time members to be appointed by the the Post Office and Civil Service Committee. It would The Authority would be authorized (1) to issue, finance, office requests for new plant and equipment. Moreover, President and confirmed by the Senate, and three full-time change drastically the operation of the Post Office, but and retire bonds secured by the Post Office property; (2) to business generally amortizes costs over many years as the Officer-Directors to be chosen by the Board. retain it as an executive agency. conduct a vigorous research and development program, equipment is being used. The Post Office Department must The Charter of the Corporation would provide powers In a speech to the House on January 6, Representative and (3) to lease needed equipment and property to the Post make purchases from current appropriations - which analogous to those of private corporations. Most important, Dulski said: Office on a cost-recovery basis. Underlying Questions between a subsidy to the postal service as a whole and to given non-profit groups; and (2) the Corporation should be said. "I think the effort to patch a fabric so full of holes is The search for a solution to the widely-accepted specified individuals and groups using the service. compelled to set rates that are competitively fair with those yielding diminishing returns." He recommended that the problem of Post Office financing is complicated by strong The overall subsidy should be eliminated entirely, it said, imposed by Federal agencies on private enterprise services system be operated by a non-profit Government pressures and counterpressures in related areas, most "in the light of the business nature of the mails and the in competition with postal services. corporation. specifically, controversy over the underlying concept that impact of the deficit on management." It added: Labor-Management President Johnson endorsed the principle of a govern- should guide the postal service, the way rates should be The second category of subsidies - subsidies to spe- With the postal work force now highly unionized, it can ment corporation in his closing days of office, as did his last determined, and the knotty problem of labor-management cific users of the service is illustrated by special rates be expected that these unions will be a major force in the Postmaster General, Marvin Watson. relations. for charitable organizations and educational materials. These rates are the real "public service" subsidies. At battle over postal modernization. An opinion poll of the Chamber's 33,000 business It is in these three areas that major differences of present the method used to calculate them tends to There are numerous indications that the union leader- members revealed near unanimous support for the major opinion arise and which - even if not always stated so overstate their amount and understate the extent to ship is less than enthusiastic about a corporation concept, recommendations of the Kappel Commission. directly - color and mould the arguments on other points. which the Treasury is supporting the postal system as a probably because they fear they would not have as much Postmaster Blount has not yet made his recommenda- whole when properly calculated, these subsidies leverage with the Directors named to run the system as they tions, which are certain to be influential, although the A Business Operation or a Tax-Subsidized Service? represent about 3.8% of total postal costs. Thus, the amount of the true public service subsidy is quite small, can now apply on Congress through their powerful lobby- Administration has moved to eliminate politics from the The theme running throughout the Kappel Commission confirming once again the business character of the ing efforts. post office and has sent to Congress a bill that would Report is that the Post Office is essentially a business-type postal system. Under the Kappel Commission proposal and under the eliminate patronage by requiring postmasters to be ap- operation and should be run as one. Differences of opinion as to whether the Post Office Udall bill, all present Departmental and field employees pointed through the Civil Service. Another viewpoint was epitomized in a letter to the should be operated in a business-type way inevitably spill would be transferred from the Federal Civil Service to a Amidst the pushing and the pulling that lie ahead in Washington Post by Patrick J. Nilan, National Legislative over into other areas, such as rate-setting and labor-manage- new career service, with their accrued pension rights, leave Congress and in the country, however, it would seem that Director, United Federation of Postal Clerks, AFL-CIO, ment relations. pay, and seniority. certain principles must be adhered to if meaningful modern- commenting on a column by Evans and Novak. Mr. Nilan Conditions of employment for non-managerial employ- ization is to be achieved. said: Postal Rates ees would be established by collective bargaining, with Some of those principles were enunciated in a policy The Post Office is many things. We ourselves agree it The Commission noted that the Post Office remains the only major public utility with rates set by Congress. It salaries and fringe benefits negotiated. statement adopted by the National Chamber Board of must develop more efficiency and better service - but why do Evans and Novak call it "debt-ridden"? As a recommended that the Corporation's Board set postal rates The existing ban on strikes by Federal employees would Directors in February 1969. It said, in part: public service agency, is the Post Office in any rational in the public service based on actual cost of service, value to be retained, but the parties would be free to establish The postal service is fundamentally a service to all the sense to be viewed as any more debt ridden than the binding arbitration procedures for the resolution of dis- people of the United States and should be operated in Pentagon or NASA or the President's Committee on those served, and changing market demands. Meaningful putes. If a dispute could not be settled by mediation, the their interest. The postal service should be conducted Employment of the Handicapped? information on the cost behavior of each postal activity, according to the highest standards of efficiency. The President would be authorized to devise a suitable means or audited by independent professional accountants, would be foundation of such operating efficiency should be a Whether one believes the Post Office is merely a public mechanism for coping with the impasse. service, like national defense, or a business-type enterprise provided by a modern cost accounting system that would management organization structure as free from outside The labor features in the Dulski bill are supported by the interference as possible with full responsibility and that should be operated as a self-supporting business with replace the outmoded Cost Ascertainment System in use major postal unions. It would go much further in pro- authority to control the income and expenses of the its costs paid by the people who use it will color one's since 1926. moting union organization. service in the same manner as a corporation operating in approach to many aspects of the problem. A combination of rate revisions and improvements in the private sector of the economy. All appointments to, It provides for an independent, full-time Postal Labor- The Kappel Commission made clear on which side it facilities and equipment that would boost productivity and promotions within, the postal system should be Management Relations Panel vested with authority to should enable the Post Office eventually to become made on a nonpolitical basis. stands: render final and conclusive decisions on disputes between The postal service should be self-supporting. Until Mail today is used primarily for commercial purposes. self-supporting - "although not necessarily class by class." employees and management, and for creation of an such time as the Congress eliminates rate concessions, it Mail service is principally a utility service not unlike the The Udall bill essentially follows this proposal, by Executive Assistant for Employee Relations "who will not should specifically appropriate money to pay the differ- electronic communication system and the transportation authorizing the Board of Directors of the Corporation to ence, if any, between the rates that are paid and the system. The Post Office has a monopoly on communi- be subject to supervision, control or interference on the set rates, which would go into effect unless vetoed by a reasonable allocated costs of handling such mail. cation by personal, written messages, and it provides the concurrent resolution of Congress within 60 days. part of any other officer or employee of the Post Office For consideration in fixing postal rates and fees, the principal means for the shipment of small parcels; it is a major advertising medium. Under this plan, Congress would establish broad policy Department." postal organization should prepare cost schedules show- A study of the proposal by experts at the National ing all fixed and variable costs of each subclass of mail. The Commission concludes, therefore, that today the criteria for rates, but not the "intricacies." Chamber revealed that "the subordination of employee The reallocation of these costs would be determined Post Office is a business. Like all economic functions it The Dulski proposal is different, and generally reduces should be supported by revenues from its users. The the role of the Corporation in rate-setting. rights to union prerogatives occurs throughout the bill", after due consideration of the causes of such costs including such factors as preferment, deferment, and the market should decide what resources are to be allocated He proposes that a commission be empaneled to review and it "would erect artificially strong unions at the expense character of the service. to the postal service. postal rates every four years. The panel would make of employee rights and freedom. It would also seriously The postal management should take continuing steps Two Types of Subsidies. The Commission also recog- recommendations to the President, who could review them erode management's freedom, and thereby its ability, to to improve the quality and kinds of service offered, the nized that its "essentially economic appraisal" of the Postal before submitting proposals to Congress. Either the House manage." means by which service is provided and the physical service is challenged by those who argue that the Postal It provides for such things as a union dues check-off, and conditions under which postal employees work. or Senate could vote changes to part or all of the proposals Policy Act of 1958 declared the postal service to be a before they went into effect in 120 days. requires the union to "participate" - not just negoti- Since postal workers must be denied the right to strike against the service reasonable methods should be In approving the Kappel Commission's recommendations ate - in management decisions. Generally, the study says, "public service" and that the Act defines the public service provided to satisfactorily settle labor disputes. for creation of a postal corporation, the Board of Directors "the provisions of this bill go beyond any existing form of allowance or statutory subsidy. The Board of Directors of the Chamber has interpreted Although agreeing that the Post Office is a public service of the National Chamber also backed the rate-setting union participation in decision-making in our country authority of the Corporation, subject to veto by Congress, today." the principles of this policy as supporting the establishment in the sense, that like a utility, it serves the public at large of a corporation as recommended by the Kappel Commis- without discrimination, the Commission said that much with two qualifications: (1) Congress, not other postal Principles sion. Other plans will also be appraised against these confusion has arisen because of failure to distinguish users, should subsidize rate concessions like those now Postmaster General O'Brien, under President Johnson principles. IN CONGRESS DOMESTIC GOALS SPENDING AND TAXES Investment Credit and Surcharge WATER QUALITY The Administration has In what was The proposals for tax changes sent to Congress its "interim" tax reform obviously a last-minute decision, the Ad- was the first of a series of legislative Efforts are being made by the ministration included in its message a re- recommendations to go to Congress that the business community to clarify water quality proposals as well as its review of the Bud- President outlined in an informal State-of- legislation before its expected Congres- get -- along with promises that more changes quest that the 7% investment tax credit be would be recommended later. repealed, effective April 21, on the grounds the-Union Message. Mr. Nixon told the Con- sional passage. gress that the recommendations would be re- that this incentive to business investment The House approved H.R. 4148 (Fallon, Taxes. Tax changes recommended by the Pres- should no longer have priority over other alistic -- that the goal of his Administra- D-Md.) 392-1, on April 16, and the Senate ident and amplified in testimony before the tion is "to propose legislation that we know Subcommittee on Air and Water Pollution is House Ways and Means Committee by Treasury pressing National needs. we can execute once it becomes law." Among expected to report out soon legislation of spokesmen are designed, he said, to "lighten Increased revenues from the repeal of the recommendations will be: a similar nature (S. 7, Muskie, D-Me.). the burden on those who pay too much and 7% tax credit -- along with the growth of - An increase in Social Security benefits increase the burden on those who pay too the economy -- would permit a reduction in designed to take account of rising living While proposing to give the Federal little." the present 10% surcharge to 5% on January costs. Government clear authority to deal with oil 1, and the probable elimination of the sur- - A program of tax credits, aimed at pro- pollution disasters, the House bill pro- To place in effect what is a version of the much-discussed "minimum tax" on those tax by June 30, 1970, the President said. viding new incentives for the enlistment of hibits the discharge in coastal waters of additional private resources in meeting so- oil and "other matter", which, in the judg- whom it is charged pay too little, the Ad- Moving Expenses. The Message also included cial needs. ment of the Secretary of the Interior, pre- ministration proposed (1) placing a limit a proposal long-made by business that the on the use of tax preferences and (2) allo- - A program to increase the effectiveness sents a "substantial hazard to public health tax treatment of moving expenses be eased. of equal employment opportunity efforts. or welfare". It additionally places respon- cation of deductions. Under the proposal, the miscellaneous costs of moving, including the costs of house- - A start on sharing revenues of the Fed- sibility on owners of ships, offshore oil The limit on tax preferences would set hunting trips, the costs of temporary living eral government with other levels of Govern- rigs, and other facilities for pollution a 50% ceiling on the amount of a person's ment. damage -- up to $10 million in cleanup costs income (over $10,000 a year) that could "en- quarters at a new location, and the costs of - New airways, airports, and mass transit for ship-owners and to $8 million for opera- joy tax preferred status." selling a house (or buying a new one) would programs. tors of industrial facilities, including be allowed as a deduction -- up to $1,000. offshore oil rigs. The allocation of deductions proposal is An additional $1,500 would be allowed to - A comprehensive labor and manpower pro- designed to prevent persons from bunching the extent that selling or buying a house gram, including job training and placement The $368 million, three-year program all their deductions and applying them or breaking a lease are involved. improvements, and proposals to help guaran- also includes funds for research and train- against regularly-taxable income. A person tee the health and safety of workers. ing grants. with more than $10,000 of tax preferences The Treasury also proposed changes in - A comprehensive reorganization of the OTHER DEVELOPMENTS other tax treatment in numerous other areas would be required to allocate his non- Post Office Department. including: H.R. 9951 has been re- business itemized deductions proportionately CRIME CONTROL ported by the House Ways and Means Committee. between his taxable income and the "allow- mineral production payments; tax- In the first of what are ex- The bill, sponsored by Committee Chairman able" portion of tax-preferred income. exempt foundations and charitable organiza- pected to be several special messages on Mills (D-Ark.) and Ranking Republican Mem- tions; the limits on the charitable contri- crime control, the President painted a bleak The proposals designed to provide tax ber Byrnes, calls for quarterly, rather than relief for low-income families would make butions deductions; the tax treatment of picture of the effects of organized crime annual collections of the Federal tax on a change in the optional tax table on the corporate securities frequently associated which has "deeply penetrated American life." payroll exacted from covered employers to regular form. It would add a "low-income with corporate acquisitions; multiple sur- Included in his outlined program were finance administrative costs of the Federal- allowance" deduction. The combination of tax exemptions; farm income; the payment of authorized wiretapping; establishment of a State employment security system. A Chamber the low-income allowance and the minimum tax-free dividends from accelerated depre- unique Federal-State Racket Squad in New committee has recommended the legislation be ciation reserves; the treatment of the ac- standard deduction would total $1,100, to York City and 20 other Federal racketeering supported as a temporary solution to the celerated depreciation election in the pub- which would be added the $600 personal ex- field offices across the Nation; an increase problems caused by the fact that administra- lic utility regulatory process; stock di- emption. in the Federal Budget of $25 million, which tive costs are rising faster than revenues. vidends; long-term capital losses; restrict- *** will "roughly double present expenditures For a single taxpayer, the proposal ed stock plans; income splitting in multiple for the organized crime effort", and $300 For the first time in history, the would make income tax free up to $1,700. A trusts; and the rules affecting Subchapter million for the Law Enforcement Assistance House Judiciary Committee seems ready to family of four would pay no tax on an in- S "small business" corporations. Administration. report out a Constitutional amendment that come up to $3,500. BUDGET would abolish the electoral college and use Mr. Nixon said that much of the income Above these figures, the deduction would The long-awaited Budget review pro- the direct popular vote system in electing of the racketeers was derived from gambling, be gradually phased out, so that the relief jected outlays of $192.9 billion for fiscal a President and Vice President. (H.J.Res. and asked for new Federal laws to help fight 1970 (a reduction of $2.4 billion from the 179, Celler, D-N.Y.). for the single person would disappear at illegal gambling. *** $3,300, and for the family of four, some- Johnson budget figure) and a surplus of $5.8 where between $3,500 and $4,500. billion. Of the $5.8 billion surplus, $4 He said the Administration is studying A spokesman for the National Chamber billion is to be obtained from a slash in the infiltration of organized crime into will appear April 29 before the House For- The Treasury estimates the proposal outlays -- $1.1 billion from reduced de- fields of legitimate business and the Attor- eign Affairs Subcommittee on Economic Policy would affect about 13 million taxpayers, and would remove about 5 million of these from fense spending, $1 billion from projected ney General is "examining the potential ap- to ask for enactment of H.Con.Res. 86 (Tun- Social Security benefit plans; and $1.9 bil- plication of the theories underlying our ney, D-Calif.), that would urge the Presi- the tax rolls. lion elsewhere. anti-trust laws as a potential new weapon. dent to do away with present mandatory con- trols over U.S. direct investments in for- them on to the Bureau of Standards and to eign countries. President Nixon recently the FTC for approval eased the controls. *** *** Chairman Rodino (D-N.J.) has called The House, prior to passage, amended his Special Committee on State Taxation of H.R. 514 (Perkins, D-Ky.) so as to shorten Interstate Commerce into executive session, from five years to two years the proposed April 30, and observers say it may report extension of the Elementary and Secondary out H.R. 7906 Education Act. The House also authorized Mrs. Virginia Knauer, head of the Pen- some of the funds to be distributed as block nsylvania State Bureau of Consumer Protec- grants. Observers feel the Senate will pro- tion, has been named President Nixon's Spe- bably go along with the shorter extension, cial Assistant on Consumer Affairs The Supporters of the change said that the 1on- Antitrust Subcommittee of the Senate Judi- ger term was designed to prevent the new Ad- ciary Committee, has resumed hearings on the ministration from making any changes in the auto repair industry, including the role program. that insurance companies play in the busi- *** ness President Nixon, in an effort to reduce The Administration is opposing H.R. the expected $1.2 billion 1970 postal def- 7919 (Foley, D-Wash.), which would set up icit by more than $600 million has asked an Assistant Secretary of Human Nutrition Congress to boost mail rates. First-class in the Department of Agriculture to coor- mail would go to 7c, postcards to 6c, effec- dinate food assistance programs, on the tive July 1, 1969. Second-class mail would grounds that the Department should develop be raised by 12%, July 1, 1970, in addition its own programs on hunger and malnutrition to the 8% increase now scheduled January 1. and not be tied down by legislation at this Third-class mail would be increased by 16%, time effective January 1, 1970. Senator Hart is expected to introduce *** soon a revised bill on franchising, which Labor Secretary Shultz, appearing before he says, will take some of the sting out of the House Labor Committee, flatly rejected franchise cancellation and termination for H.R. 100, a union-backed bill to permit sec- the franchisee Hearings will continue un- ondary boycott picketing by construction and til May 1 by the International Finance Sub- building unions at building sites, but of- committee, Senate Banking Committee, on 1eg- fered to try to work out a compromise. Mr. islation (S. 813) that would extend the Ex- Shultz said any bill to permit common situs port Control Act, now scheduled to expire picketing should not include its use in ju- June 30, until June 30, 1973. risdictional disputes between unions, should Hearings are also continuing on H.R. 474 provide protection for industrial and inde- (Holifield, D-Calif.) by the Subcommittee on pendent unions, and should limit picketing Military Operations. The bill would set up to 15 days. a 15-member Commission on Government Pro- *** curement to make a two-year study The Rep. Dingel (D-Mich.) has introduced Joint Economic Committee will hold hearings H.R. 10124, that would extend Federal au- April 30-May 1 on Federal statistical pro- thority beyond the Secretary of Commerce grams, with special emphasis on the scope of for approval of voluntary manufacturing questions asked in the Census The House standards. The bill provides that a volun- Rules Committee has appointed a Special Sub- tary group could submit standards to the committee to study and report on the numer- Secretary of Commerce, who would also pass ous proposals for Congressional Reform. HERE'S THE ISSUE Postal Modernization April 25, 1969 Salaries FOR RELEASE ON DELIVERY TO THE SENATE January 17, 1969 OR THE HOUSE OF REPRESENTATIVES NOTICE: There should be no premature release of this message nor should its contents be paraphrased, alluded to or hinted at in earlier stories. There is a total embargo on this message until it has been delivered to the United States Senate or the House of Representatives, which includes any and all references to any material in this message. George Christian THE WHITE HOUSE TO THE CONGRESS OF THE UNITED STATES: The Congress, the Executive Branch, and the Federal Judiciary are the vital nerve centers of government. Whoever mans them is involved in activities so momentous and far-reaching that they touch the lives of all our citizens -- and indeed of people the world over. Our national interest demands and our national survival requires that America summon its best men and women to assume the power of decision and the responsibility of leadership for government in action. Central to this concern is the matter of compensation at the top echelons of Government. Today, the salaries we pay our top officials are clearly inadequate. The Kappel Commission The record of the past has been one of inadequate and fragmentary adjustments in top-level compensation -- always too little, often too late. I believed in my Administration that the time had clearly come to re-examine the entire top Federal salary network. To this end, I asked the Congress to create a bipartisan commission to: -- Recommend any changes its study found necessary -- Review top-level Federal salaries every four years. The Congress responded. In December 1967, I signed into law a measure which gave life to the Commission on Executive, Legislative and Judicial Salaries the first such body in our Nation's history. The Commission was composed of nine distinguished Americans: Three were appointed by the President: Frederick R. Kappel, former Chairman of the Board of Directors of the American Telephone and Telegraph Company, who served as the Commission's Chairman. John J. Corson Consultant and Corporate Director George Meany President, American Federation of Labor and Congress of Industrial Organizations more 2 Two were appointed by the President of the Senate: -- Stephen K. Bailey Dean, Maxwell Graduate School Syracuse University Sidney J. Weinberg Senior Partner, Goldman, Sachs & Co. Two were appointed by the Speaker of the House of Representatives: Edward H. Foley Attorney Former Undersecretary of the Treasury William Spoelhof President, Calvin College Grand Rapids, Michigan Two were appointed by the Chief Justice of the United States: Arthur H. Dean Attorney Chairman, U.S. Delegation, Nuclear Test Ban and Disarmament Conference William T. Gossett Attorney President, American Bar Association After a comprehensive study of top Federal salaries, the Commission concluded that: Present compensation levels are not commensurate with the importance of the positions held. These levels are not sufficient to support a standard of living that individuals qualified for such posts can fairly expect to enjoy and in many instances have long established. Action should be taken to modernize, without delay, the top pay structure of the Executive, Legislative and Judicial Branches of government. The Recommended Reforms Any recommendations the President might make for salary reform must be included in his budget. In preparing my budget for Fiscal Year 1970, I carefully reviewed the full report of the Kappel Commission. Their proposals served as a valuable guide as I weighed the recommenda- tions the law requires me to make recommendations which will become effective 30 days after they are submitted unless the Congress disapproves them during that period. I agree with the recommendations of the Kappel Commission Report. If I alone had the power to put its recommendations into effect, I would do so, But in our proposal to the Congress and in the law passed by the Congress creating the Commission, final action on the report was to be a joint enterprise between the executive and legislative branches. I have more 3 therefore found it necessary to modify some of the Kappel Commission recommendations -- particularly with respect to congressional salaries, and also with respect to the pay of certain executive positions. I do recommend that the Kappel Commission proposals be put into effect for the top officials of the federal, judicial and executive branches. For them, I recommend the following pay scales: Chief Justice: $62,500 Associate Justices of the Supreme Court: $60,000 Cabinet Heads: $60,000 Of all the salaries, Congressional compensation posed the most difficult problem of all and was the hinge on which my recommendations turned. As the Commission pointed out: "Members' salaries should be adjusted to compensate for the substantial and unique responsibilities they bear, to meet the cost peculiar to elective rather than appointive office, and to minimize the need to rely on other means of augmenting income." The Commission then recommended that Congressional pay should be set at $50,000. Congressional salaries have been raised in slow and piecemeal fashion, far outpaced by pay increases in the rest of the economy, Over the past three decades, Congressmen have received only three pay increases -- an average of one pay raise every ten years -- to the current level of $30,000, a salary which by today's standards is woefully inadequate. I do not think that the American people want to see their elected representatives -- who must bear the awesome burdens these critical times demand serve their Nation at the price of financial hardship. I therefore believe that the $50,000 Congressional salary recommended by the Kappel Commission can be justified. A proper concern for history and tradition, however, suggests that the President should consult the leaders of Congress before he makes any recommendations concerning Congressional salaries. I have done that. These discussions and consultations revealed that Congress would be reluctant to approve a $50,000 salary, When it comes to a pay increase, Congress puts its own members last in line. Instead. an increase to $42, 500 was considered preferable and more likely to receive the necessary support. I respect the desires of the leaders of the Congress. I therefore now recommend a $42, 500 salary for the Members of the House of Representatives and the Senate. The Congressional salary I am recommending today represents an 89% increase over the level of compensation in 1955. I must point out, however, that during this same period salaries of the highest Civil Service career grade increased by well over 100 per cent. more 4 Civil Service salaries, moreover, will be adjusted periodically to keep them comparable to those in industry while Congressional salaries must, under current law, remain unchanged for the next four years. Projections indicate the following salary increases between 1955 and 1972: -- 88.9% Congressional salaries -- 90% Postal workers -- 94% Average Federal worker 94% Factory workers -- 101% Government Wage Board employees -- 109% GS-15 Career Civil Servant -- 135% GS-18 Career Civil Servant Thus, even with the recommended pay increase for our lawmakers, the increase in Congressional salaries will lag behind those of other Government workers and employees in the private sector. Since the weight of custom and a sense of fairness require that we maintain and preserve proper pay relationships at the upper echelons of Government, the proposed $42, 500 Congressional salary requires that I make certain adjustments in the Kappel Commission's proposals for other top level salaries. Accordingly, I recommend the following pay scales: Level II (Heads of Major Agencies): $42,500 Level III (Including Under Secretaries): $40,000 Level IV (Including Ass't. Secretaries): $38,000 Level V (Including Heads of Boards): $36,000 My recommendations for the other top level positions covered by the Kappel Commission are set forth in my budget in accordance with the requirements of Public Law 90-206. The salaries of the Vice President, the Speaker of the House, the Majority and Minority Leaders of the House and Senate and the President Pro Tem of the Senate were not, as such, covered by the Kappel Com- mission's charter. For this reason, I am submitting separate pay legislation embodying my recommendations, as follows: Vice President: $62,500 Speaker of the House: $62,500 Majority and Minority Leaders of the House and Senate and President Pro Tem of the Senate: $55,000 more 5 Congressional Allowances The burdens imposed by Congressional service are unique. They often require members to bear extra expenses in connection with their official responsibilities. Most lawmakers, for example, must maintain two homes for themselves and their families -- one among the people in the district or state they serve; the other in or near the Nation's capital. Recognizing these facts, the Federal tax laws have allowed deductions of up to $3,000 a year for living expenses at the seat of our national government. That maximum deduction has remained fixed for 15 years now -- while sessions of the Congress have grown longer and longer under the pressure of increasing workloads and crowded legislative calendars. I believe we should increase the maximum deduction so that Members of Congress will not be required to use any new pay increase to defray some of the essential living expenses incurred in the pursuit of their official duties. Accordingly, I recommend that the maximum Federal tax deduction for Congressional living expenses be raised by $2, 500 from $3,000 to $5, 500. Excellence in the Public Service The proposals I make today are long overdue and urgently needed salary reforms at the upper levels of our government. But they are more than pay recommendations, for they cut to the heart of what modern government is all about . excellence in the pursuit of the public's business. This moment of decision provides a unique occasion to strengthen the sinews of American government. We can do this by offering to our best and ablest citizens fair compensation for the job they must do in guiding America forward in the years ahead. Just as these public servants in the Congress, in the Cabinet and in the Judiciary - have a responsibility to the Nation, so the Nation has a responsibility to them. The total amounts involved in my pay proposals are relatively small. But they will be wise investments in our future. I urge the Congress to grasp the opportunity presented to it and to respond favorably to the recommendations I am submitting today. LYNDON B. JOHNSON THE WHITE HOUSE, January 17, 1969. #### 91sT CONGRESS 1ST SESSION H. R. 4 A BILL To modernize the United States postal estab- lishment, to provide for efficient and eco- nomical postal service to the public, to im- prove postal employee-management rela- tions, and for other purposes. By Mr. DULSKI JANUARY 3, 1969 Referred to the Committee on Post Office and Civil Service