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Joint Convention of Postal Supervisors and Post Office Clerks, Grand Rapids, MI, May 27, 1950
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Joint Convention of Postal Supervisors and Post Office Clerks, Grand Rapids, MI, May 27, 1950
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Gerald R. Ford Congressional Papers
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The original documents are located in Box D13, folder "Joint Convention of Postal
Supervisors and Post Office Clerks, Grand Rapids, MI, May 27, 1950" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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.
Speech time by Ry. Hhald Ford Jr.
4 rdease on
at Part Joint Charenter of Postal suphorisms +
Mir clerks in J.R M, Sat. may 27,1950
T
Mr. Teastmaster, honored and distinguished guests, members
of the Michigan Branch of Postal Supervisers, and members of the
Michigan Federation of Post Office Clerks - It is a very real privilege
and pleasure for me to meet with you at this 32nd Annual Convention in
my home city of Grand Rapids. We in the Furniture Capital of the World
welcome you and urge your return, individually and collectively, to this
community.
I am particularly pleased to have the opportunity to discuss
with you some of the perplexing and controversial problems relating to
the postal service. The problems to be discussed are not limited in
scope to the welfare of postal employees, but rather directly concern
our citizens as a whole. Even though some of the technical problems
may be of prime importance to these assembled here this evening, because
the Post Office Department literally touches the home of every citizen
of this country, the legislation and administrative decisions in reference
to the department are of universal interest. I only ask that we all
FORD & LIBRARY GERALD
examine the issues, not only as government officials and employees, but
Page one
Digitized from Box D13 of The Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library
as citizens of the greatest nation in the world today. This is the
nation which the rest of the world is depending on as the champion
of freedom and the bulwark against the insidious forces of totalitarianism.
.s
Under no circumstances in the time of crisis should the United States as a
whole or any group of its citizens take any action that would weaken
us internally or otherwise. Because of the long record of patriotism
and unselfishness of those here tonight I know your future activities
will be in the best interest of our republic.
The deficit in the Post Office Department, totalling $550,000,000
annually, has become a major concern in our federal budget preblems.
This bugaboe has been highlighted of late by the fact that the federal
government has an increasing annual deficit in prespect for the next
fiscal year. As you probably know, since this deficit has mounted to its
present day prepertions, the Post Office Department has consistently
recommended against KY the enactment of every proposed legislation, directly bene-
all
fitting postal employees which involved additional costs to the department.
A good example of this is the vigorous protest by the Department in
FORD & LIBRARY GERALD
annual
opposition to the $450.00 wage increase granted by the 80th Congress.
Page Two
Our
mightevell begin
A good place to begin this discussion tonight is with a review
enacted
of the legislation passed during the present Congress which directly benefits
you as employees of the department.
POSTAL EMPLOYEES LEGISLATION
In 1949 during the first session of this Congress, Public Law
approved
428 was emacted. Under this law postal employees received a flat salary
increase of $120 a year. Those employees in certain categories which
did not have at least three lengevity grades were given these grades.
For the first time, postmasters and supervisors were given longevity
amounted to
grades. These grades were of $100 each except in the case of fourth-class
postmas ters who received instead increases of 5% of their base salary.
For most postal supervisors, since practically all have 25 years of
service, this meant an increase of $420 a year, in other words $300
asthe result of
for their longevity grades and $120 in the flat increase. Also, under
Public Law 428, the entrance salary for regular employees was increased
by $200. This was accomplished by elimination of the first two grades
for regular employees. Hereafter substitute employees will still enter
FORD is LIBRARY GERALD
one
the postal service in grade (1) but after they have served a year will
three
be promoted to grade 3. This is a legical step although I believe it
Page Three
probably did not go far enough. For example, when Public Law 134, 79th
Congress, was approved, all employees who were on the rells of the Post
Office Department received an increase of $400 a year. However, the annual
all
entrance salary for postal employees remained at $1,700.00. For other
federal employees, the basic entrance salary was increased.
There were additional beneficial sections of the, organal bill (H.R.4495),
as it passed the House which were eliminated in conference with the Senate.
I am referring to the increased annual leave for postal employees of 5
days a year and a uniform allowance. In my opinion, the annual leave
situation today is one of the most controversial issues in Congress.
Presently it is the subject of study by Congressional Committees and the
Bureau of the Budget and probably one of these days in the near future
firm recommendations will be made with respect to this problem. Whatever
these recommendations may be, in my judgment they will inevitably be more
favorable for postal employees inasmuch as, at the present time, postal
em pleyees receive eleven days less annual leave and 5 days less sick
leave than other federal employees.
FORD & LIBRARY GERALD
Page Four
at
I am sure all of you are familiar with the Comptroller General's
decision which voided many increases which the Department proposed to
make under Public Law 428 and which were obviously the intent of
Congress when that law was passed. To correct these interpretations of
the law the House during this session considered a number of remedial
bills. The first was H.R.6553, to permit rural carriers to count all
of their time in postal service toward longevity grades. The second was
H.R.6603, to permit custodial employees to count certain service toward
their longevity grades. When these bills reached the Senate, it was
suggested by the Post Office Department and the Comptroller General that
there be a general review by Congress of the decision of the Comptroller
General and that the language of Public Law 428 be clarified in one legis-
lative preposal. Accordingly, H.R.6553 was amended in the Senate. This
bill is now Public Law 500, 81st Congress and under it the following is
established:
Three longevity grades to which all employees will be entitled
FORD is LIBRARY GERALD
after 13, 18 and 25 years of service. These longevity increases are of
$100 per annum for regular employees, except that fourth-glass postmasters
Page Five
will be paid 5% of their base pay rather than the $100. In qualifying for
these grades, employees may count all years of postal service and custodial
employees may count their years of service both with the Treasury Department
and the Post Office Department. Special delivery messengers count their
may
time when they were paid on a fee basis. Clerks in third-class post offices
may count the time they were working in the post offices as employees of the
postmasters prior to their Classification under Public Law 134, 79th Congress.
Temporary employment may be counted where it is for a period of more than one
year or where it is continuous to the date of appointment as a classified
employee'
Some employees may find it advantageous to remain under the present
system of longevity promotions. This law will permit them to select either
the present system or the new longevity grades. However, gradually there will
be a conversion to the new longevity grades system of 13, 18 and 25 years for
all employees. This will simplify the law with respect to longevity promotions
and is a definite mprovement.
GERALD A. FORD
The Senate amendment further prevides that lengevity increases
panted supervisors will not be counted in determining whether such a superviser's
Page Six
salary exceeds $4170. This is the top limit permitted supervisors who
are granted overtime compensation on Sundays, holidays or during the month
of December.
Another piece of legislation of interest to postal employees
is H.R.87. This bill, as you know, will give veterans who entered their
postal service after World War II credit for their military service toward
their promotions in the postal service on a pro rata basis. The basic
logic for this particular legislation is based upon the fact that the time
a man spent in the military service should be given the same consideration
as that time spent in the postal service toward promotion. In other
government positions outside of the postal service many veterans entered
Civil Service for the first time and qualified for higher classifications
the projective employee
based upon their military experience and skill. For example, Mary might
have been an adjutant in the Army and by virtue of that experience quali-
fied for a high grade position as a permonnel officer under the federal
Civil Service. Many veterans used their experience as radio technicians,
GERALD FORD LIBRARY
electricians, and other capacities in the military service as a basis
for qualifying for certain Civil Service examinations and the records show
Page Seven
that the policy of the Civil Service Commission was liberal in this
Furthermore,
regard. /Veterans who entered private industry, in many cases, were also
able to use military experience as a basis for obtaining positions at a
higher rate of pay. In the postal service, however, regardless of the
qualifications of the individual, educational background, business experience
or military assignment, a prespective employee must still enter at the
lowest pay grade.
The Senate Post Office and Civil Service Committee has already
recommended favorably H.R.87 as it passed the House including the July,1,
1950 cutoff date, and it is expected that the bill will come up for Senate
consideration at the next call of the Senate Calendar. Because of the
Department's objection to the proposal there is some likelihood that the
President may veto the bill but that obstacle will have to be overcome
once the Senate acts favorably.
The House Post Office and Civil Service Committee has presently
under consideration a number of bills which are designed to reclassify
FORD is LIBRARY GERALD
the salaries of postmasters and supervisors. Unquestionably most of the
supervisors here tonight are familiar with the terms of H.R.4757, which is
Page Eight
under active consideration by the Committee. Hearings have already started
on this bill in both the House and Senate Committees. Generally speaking,
there seems to be agreement on the point that the classification of
postmasters and supervisors should be reexamined, particularly in the light
of the successive flat increases which have occurred beginning in 1945. It is
fair to say that the consensus among the committee members seems to be that
if inequities and inequalities can be identified, they should be corrected
and, furthermore, there is a similar feeling in the House favoring such an
approach, and those of us not on the committee simply await the initial action
by that group.
There has been, however, a modifying factor with respect to flat
increases as they affect postmasters and supervisors. I refer specifically
to the over-all increase in the gross receipts in almost every area. In 1936,
for example, the gross receipts of the postal service were $665,000,000.
Today, for fiscal year 1949, they are $1,571,800,000. In Grand Rapids, during
FORD i LIBRARY GERALD
the period from 1936 the gross receipts have grown from $1,303,965 to
$3,567,042 in 1949. If the postal rate increase bill passed by the House is
Page Nine
approved by the Senate, postal revenues will be increased by another
$150,000,000 which in effect will represent an increased salary for post-
masters and supervisors.
There is other legislation of interest to supervisors and clerks
which is presently under active consideration by Committees of Congress.
First, a bill sponsored by Representative Rees of Kansas, H.R.2586, which
would make it pessible to relieve clerks who have made payments on money
orders where the signature has been forged and where the clerk has taken
satisfactory precautions. The other is aimed at reducing the cost on bonds
to department employees. Several of the proposals relate only to pestal
employees and would set up a fidelity bond trust by the employees themselves.
Others cover all federal employees, would pay the bonds private bonding
companies. One which is receiving favorable comment in the discussions of
the Committee on Expenditures in the Executive Department is a bill which
would have the Government pay the bond premium but provide for coverage on
a blanket bond basis rather than have thousands of individual bonds. The
adoption of this proposal would result in considerable savings to the employee
FORD & LIBRARY GERALD
and a much lower cost to the Government and seems superior to handling the
problem on an individual basis.
Page Ten
The members of the House and Senate committees having jurisdiction
of post office department problems have no easy job. They are harassed from
all sides. The general public wants more and cheaper service. Business,
religious, educational and many other groups fight doggedly against rate in-
creases. Employee organizations are naturally interested in legislation
favorable to them. The committee's problems are further complicated by the attitude
of the Department which is reluctant to make any favorable recommendations
that envid. will increase costs. Frankly The committee members are not to be
THE POSTMASTER GENERAL'S CURTAILMENT ORDER
Probably no order of the Postmaster General in history has been
as widely publicized or as warmly debated as the Postmaster General's order
directing that only one delivery a day will be given in residential areas and
two in business areas. Probably no other single decision by the Postmaster
asit mon stands move
General will have as great an impact on employees in the department as this
particular order because more than 10,000 employees are allegedly scheduled to be released
as a direct result.
I think the Postmaster General might have helped the situation to
GERALD, FORD LIBRARY
some degree given a little notice that he expected to curtail the
for all if concerned he had
some prior
delivery of mail as outlined in his order. I direct your attention to the
Page Eleven
if the Postmaster General wishes other T save money
such
fact that there are a number of places where a savings could be made in the
service curtailment
postal service. It is my view that the whole issue should be examined,
lya responsible Committee
and I was informed on Thursday that the House Committee on Post Office and
Civil Service is scheduled to begin exhaustive hearings oh the matter on June
Inspectfully suggest that General
1st. If the Postmaster is making this move in order to save taxpayers money,
he should say so. He should not use the excuse that there is a shortage of
approprated by The longress, the records indicate
funds, I am informed the Post Office Department was allocated practically
all funds requested from the Congress for this fiscal year.
This erder, which was sprung upon the public totally without any
preliminary preparation, has created a great deal of consternation among the
users of the mails. It has the appearance of turning back the cleck from the
standpeint of service and, if carried out, will disrupt delivery service in
In addition
all first-class and most of the second-class post offices. The tone of the
order, together with directions of the Deputy Pestmaster General with respect
the threatened descharge
to discharging of employees, has had a drastic effect on the morale of our
pestal workers.
It is inconceivable that if reductions in force are carried on in
curtailment order
FORD & LIBRARY GERALD
proper and orderly manner that this should necessarily affect any regular
10,000
or substitute employees since there are many more than this number of temperary
Page Twelve
at the present teme.
employees. Also, if the program were properly planned, normal attrition
with few exceptions
could be utilized for reduction in force procedures and no present postal
employee needs to lose his job. This order, unfortunately like so many others in the
including Temporares
was
postal service, is made on a mass basis without preliminary experimental
was
work. It is made before other economies with a lesser impact on the public
had
other
or the postal employees have been instituted. These economies have previously
A
been brought to the attention of the Postmaster General as a result of studies
made by the Congress and the Hoover Commission.
Let me give you several specific examples of what I mean. In the
Eightieth Congress, the Post Office and Civil Service Committee suggested
that the elimination of the individual recording of special delivery mail be
eliminated at a saving, which was estimated to be $1,000,000 a year. This
particular recommendation was taken up by the Senate Appropriations Committee
and the Department was requested to run a sample test in two cities. These
the policy
sample tests worked out very well and then at was extended throughout the
postal system. There was no disturbance to the public. Service was actually
enthe experimental Isense period.
improved during the test period by the lessons that were learned. would
dictate
FORD
seem that this should have been the procedure followed if a general curtail-
GERALD
LIBRARY
the Department beforehand
ment of service was to be ordered. In other words, we should know what the
Page Thirteen
effect on postal
result would in be from the standpoint of service to the public. The employees. The pubic the postal employes
each area
should have been properly prepared for such a move and given an opportunity
to express their views.
Another example of where economies might be placed effectuated into effect and
service improved is in the adoption of mechanical sorting equipment in the
such a policy
larger post offices. The Postmaster General has stated this is a success
where a machine
incomechine at the Chicago post office which was rebuilt and improved after
such a
the recommendation was made by the House Post Office and Civil Service Com-
Whenever practicable
mittee during the Eightieth Congress. Such machinery should be placed in other
in order meeded
larger post offices to effect economies.
Public Law 231, Eighty-first Congress, established for the first time
in the post service a research and development program. In the establishment
of such a program the Post Office Department, in its official reports, merely
left this idea up to Congress without making any specific recemmendations. However,
enterely
A
the department has
now that the law has been enacted, they have listed a whole succession of
developments which they expect to make and improve under this program.
THE HOOVER COMMISSION REPORT
FORD is LIBRARY GERALD
Many people are asking questions about the Hoover Commission Report
and its effect on the postal service. You, as employees in the postal service,
Page Fourteen
are probably asked these questions more than anybody else and, for that rea-
son, you may be interested in a short summary as to what action has been
take n to date with respect to the Hoover Commission proposals as they affect
the postal service.
Reorganization Plan No. 3, which has already been approved and is
in operation, places into effect the following recommendations of the Hoover
Commission:
(1) Establishment of a Deputy Postmaster General (Sec. 3).
(2) Establishment of a board of 7 advisors to the Postmaster
General (Sec. 6).
(3) Abolishment of the Bureau of Accounts, including the
offices of the Controller and Purchasing Agent (Sec. 5).
(4) Abolishment of the First, Second, Third and Fourth Assistant
Postmasters General and provides for the appointment of fumr
Assistant Postmasters General (Sec. 4).
(5) Transfers to the Postmaster General the functions of all subordinate
offices and agencies of the Post Office Department (Sec. 4).
Recommendations of the Hoover Commission Task Force with respect
FORD & LIBRARY GERALD
a research and development program have been placed into effect by
Public Law 231 (81st Congress). By an amendment to the rate bill the House
Page Fifteen
approved the Hoover Commission recommendation that the Postmaster General
be empowered to set the rates on special services. The 1951 budget incorporates
the Hoover Commission suggestion of a Performance budget. Recommendations
with respect to the account and fiscal control of the postal service are
incorporated in two house bills, H.R.5775 and H.R.6395. These bills are
under consideration by the House Post Office and Civil Service Committee.
Hearings on companion bills have been held in the Senate. The differences
in views with respect to both of these bills concern the extent of control
over expenditures which will remain with the Comptreller General. When
these differences are reselved, legislation will probably be approved. I
the legitation deerry
hope we will have an opportunity to vote on Ht this Congress.
The recommendations of the Hoover Commission with respect to re-
gionalization of the postal service have met with stiff opposition from
Postmaster General Donaldson who has said -
"I would not want to be Postmaster General if this particular
recommendation were put into effect and I would have the responsibility
of providing present postal service."
GERAL FORD LIBRARY
As you know, of course, the postal service has already been region-
Page Sixteen
alized in many respects, such as the Railway Mail Service which now has fifteen
divisions. There is a similar regional setup for the air mail service. The
Central Accounting office is another regional setup. The pay for rural car-
riers is handled on a state-wide basis. The apparent tendency within the
postal service itself appears to favor a gradual development toward the
regionalization of the postal service. Unfertunately there has however,
not been a corresponding delegation of authorityly authority the department.
With respect to the Hoover Commission recommendation that the air
mail subsidy be separated from air mail pay, ments the House Committee on Interstate
and Foreign Commerce, which handles this legislation, is currently considering
bills which would effect this separation. This is another complex problem
involving the proper correct amount which should be designated as outright subsidy.
In my opinion, we should arrive at a means of separating this subsidy and Thereafter,
under the ferjula the subsidy should not be charged to our postal service.
I firmly believe that our domestic aviation system should be kept strong,
not only as a means of transportation but as an asset in our national defense
such
setup, but at the same time any subsidies should not be charged against the
Post Office Department.
FORD i LIBRARY GERALD
Page Seventeen
The final recommendation of the Hoover Commission pertains to
Senatorial approval of postmasters throughout the country. The alleged
objective is to eliminate "politics" from the postal service. Frankly, I
do not think "politics" as such are likely to be entirely eliminated by such
"politics"
long
Personally a change. 2 favor Most career of men the politicing for such jobs. takes It place, has world before eftremely the names well our are able in ever Grand Postmerter Ropeds art under Homelton
submitted to the United States Senate. 1 However, the question of Senatorial of the
Horr Commussion
recommendation
approval of certain Presidential appointments, including postmasters, is a will result
career everytment,
Senate prerogative and is a matter which in my judgment should be solved I favor The
whole
first in the Senate before the House takes any action.
I have tried to outline in my remarks what I believe are the three
major fields of interest to postal employees at the present time, namely,
legislation concerning postal employees, secondly, the order of the Post-
master General curtailing service, and third and finally, the Hoover Commission
recommendations for the postal service. It is my sincere hope that my
comments h ave been helpful. Thank you.
FORD i LIBRARY GERALD
For release
on delivery
SPEECH BY REPRESENTATIVE GERALD R. FORD, JR. AT
JOINT CONVENTION OF POSTAL SUPERVISORS AND POST
OFFICE CLERKS IN GRAND RAPIDS, MICHIGAN -
SATURDAY, MAY 27, 1950
Mr. Teastmaster, honored and distinguished guests, members
of the Michigan Branch of Postal Supervisors, and members of the
Michigan Federation of Post Office Clerks - It is a very real privilege
and pleasure for me to meet with you at this 32nd Annual Convention
in my home city of Grand Rapids. We in the Furniture Capital of
the World welcome you and urge your return, individually and col-
lectively, to this community.
I am particularly pleased to have the oppertunity to discuss
with you some of the perplexing and centreversial problems relating
to the postal service. The problems to be discussed are not limited
in scepe to the welfare of postal employees, but rather directly con-
cern our citizens as a whole. Even though some of the technical prob-
lems may be of prime importance to those assembled here this evening,
because the Post Office Department literally touches the home of
every citizen of this country, the legislation and administrative
decisions in reference to the department are of universal interest.
I only ask that we all examine the issues, not only as government
efficials and employees, but as citizens of the greatest nation in
the world today. This is the nation which the rest of the world is
depending on as the champien of freedom and the bulwark against the
insidious forces of totalitarianism. Under no circumstances in this
FORD i LIBRARY GERALD
time of crisis should the United States as a whole or any group of its
(1)
citizens take any action that would weaken us internally or other-
wise. Because of the long record of patriotism and unselfishness
of those here tenight I know your future activities will be in the
best interest of our republic.
The deficit in the Post Office Department, totalling $550,000.000
anmially, has become a major concern in our federal budget problems.
This bugabeo has been highlighted of late by the fact that the federal
government has an increasing deficit in prespect for the next fiscal
year. As you probably know, since this deficit has mounted to its
present day prepertions, the Post Office Department has consistently
recommended against the enactment of all proposed legislation directly
benefitting postal employees which involved additional costs to the
Department. A good example of this is the vigorous protest by the
Department in oppositien to the $450.00 annual wage increase granted
by the 80th Congress.
Our discussion tonight might well begin with a review of the
legislation enacted during the present Congress which directly benefits
you as employees of the Department.
POSTAL EMPLOYEES LEGISLATION
In 1949 during the first session of this Congress, Public Law
428 was approved. Under this law postal employees received a flat
salary increase of $120 a year. Those employees in certain categories
which did not have at least three longevity grades were given these
grades. For the first time, postmasters and supervisors were given
longevity grades. These grades amounted to $100 each except in the
FORD is LIBRARY CERALD
case of fourth-class postmasters who received instead increases of 5%
-2-
of their base salary. For most postal supervisors, since practically
all have 25 years of service, this meant an increase of $420 a year,
in other words $300 for their longevity grades and $120 as the re-
sult of the flat increase. Also, under Public Law 428, the entrance
salary for regular employees was increased by $200. This was accomp-
lished by elimination of the first two grades for regular employees.
Hereafter substitute employees will still enter the postal service in
grade one (1) but after they have served a year will be promoted to
grade three (3). This is a legical step although I believe it probably
did not go far enough. For example, when Public Law 134, 79th Congress,
was approved, all employees who were on the rolls of the Post Office
Department received an increase of $400 a year. However, the annual
entrance salary for postal employees remained at $1,700.00. For all
other federal employees, the basic entrance salary was increased.
There were additional beneficial sections of the original bill
(H.R.4495), as it passed the House which were eliminated in conference
with the Senate. I am referring to the increased annual leave for
postal employees of 5 days a year and a uniform allowance. In my
opinion, the annual leave situation today is one of the most contro-
versial issues in Congress. Presently it is the subject of study
by Congressional Committees and the Bureau of the Budget and probably
one of these days in the near future firm recommendations will be made
with respect to this problem. Whatever these recommendations may be,
in my judgment they will inevitably be more faverable for postal em-
pleyees inasmuch as, at the present time, postal employees receive
FORD LIBRARY & GERALD
eleven days less annual leave and 5 days less sick leave than other federal
employees.
(3)
I am sure all of you are familiar with the Comptroller General's
decisien which voided many increases which the Department proposed to
make under Public Law 428 and which were obviously the intent of Congress
when that law was passed. To correct these interpretations of the law
the House during this session considered a mumber of remedial bills.
The first was H.R.6553, to permit rural carriers to count all of their
time in postal service toward longevity grades. The second was H.R.6603,
to permit custodial employees to count certain service toward their
longevity grades. When these bills reached the Senate, it was suggested
by the Post Office Department and the Comptroller General that there be
a general review by Congress of the decision of the Comptroller General
and that the language of Public Law 428 be clarified in one legislative
propesal. Accordingly, H.R.6553 was amended in the Senate. This bill
is now Public Law 500, 81st Congress, and under it the following is
established:
Three longevity grades to which all employees will be entitled
after 13, 18 and 25 years of service. These longevity increases are
of $100 per annum for regular employees, except that fourth-class
postmasters will be paid 5% of their base pay rather than the $100.
In qualifying for these grades, employees may count all years of postal
service and custodial employees may count their years of service both
with the Treasury Department and the Post Office Department. Special
delivery messengers may count their time when they were paid on a fee
basis. Clerks in third-class post offices may count the time they were
FORD is LIBRARY GERALD
working in the post offices as employees of the postmasters prior to
their classification under Public Law 134, 79th Congress. Temporary
(4)
employment may be counted where it is for a period of more than nne
year or where it is continuous to the date of appointment as a classi-
fied employee.
Some employees may find it advantageous to remain under the pre-
sent system of longevity promotions. This law will permit them to se-
lect either the present system or the new longevity grades. However,
gradually there will be a conversion to the new longevity grades
system of 13, 18 and 25 years for all employees. This will simplify
the law with respect to longevity promotions and is a definite improve-
ment.
The Senate amendment further provides that lengevity increases
granted supervisors will not be counted in determining whether such a
supervisor's salary exceeds $4170. This is the top limit permitted
supervisers who are granted overtime compensation on Sundays, holidays
or during the month of December.
Another piece of legislation of interest to postal employees is
H.R.87. This bill, as you know, will give veterans who entered the
postal service after World War II credit for their military service
toward their promotions in the postal service on a pro rata basis.
The basic logic for this particular legislation is based upon the fact
that the time a man spent in the military service should be given the
same consideration as that time spent in the postal service toward pro-
motion. In other government positions outside of the postal service
many veterans entered Civil Service for the first time and qualified
for higher classifications based upon their military experience and
skill. For example, the prospective employee might have been an adjutant
FORD i LIBRARY CERALD
(5)
in the Army and by virtue of that experience qualified for a high
grade position as a personnel officer under the federalCivil Service.
Many veterans used their experience as radio technicians, electricians,
and other capacities in the military service as a basis for qualify-
ing for certain Civil Service examinations and the records show that
the policy of the Civil Service Commission was liberal in this regard.
Furthermore, veterans who entered private industry, in many cases, were
also able to use military experience as a basis for obtaining positions
at a higher rate of pay. In the postal service, however, regardless
of the qualifications of the individual, educational background, busi-
ness experience or military assignment, a prospective employee must
still enter at the lowest pay grade.
The Senate Post Office and Civil Service Committee has already
recommended favorably H.R.87 as it passed the House, including the
July 1, 1950 cutoff date, and it is expected that the bill will come
up for Senate consideration at the next call of the Senate Calendar.
Because of the Department's objection to the proposal there is some
likelihood that the President may veto the bill but that obstacle will
have to be overcome once the Senate acts faverably.
The House Post Office and Civil Service Committee has presently
under consideration a number of bills which are designed to reclassify
the salaries of postmasters and supervisors. Unquestionably most of
the supervisors here tonight are familiar with the terms of H.R.4757,
which is under active consideration by the Committee. Hearings have
already started on this bill in both the House and Senate Committees.
FORD & LIBRARY GERALD
Generally speaking, there seems to be agreement on the point that the
(6)
classification of postmasters and supervisers should be reexamined,
particularly in the light of the successive flat increases which
have occurred beginning in 1945. It is fair to say that the consensus
among the committee members seems to be that if inequities and inequali-
ties can be identified, they should be corrected and, furthermore, there
is a similar feeling in the House favoring such an approach, and those
of us not on the committee simply await the initial action by that group.
There has been, however, a modifying factor with respect to flat
increasew as they affect postmasters and supervisors. I refer speci-
fically to the over-all increase in the gross receipts in almost every
area. In 1936, for example, the gross receipts of the postal service
were $665,000,000. Today, for fiscal year 1949, they are $1,571,800,000.
In Grand Rapids, during the period from 1936 the gross receipts have
grown from $1,303,965 to $3,567,042 in 1949. If the postal rate increase
bill passed by the House is approved by the Senate, postal revenues will
be increased by another $150,000,000 which in effect will represent
an increased salary for postmasters and supervisers.
There is other legislation of interest to supervisors and clerks
which is presently under active consideration by Committees of Congress.
First, a bill sponsored by Representative Rees of Kansas, H.R.2586,
which would make it possible to relieve clerks who have made payments
on money orders where the signature has been forged and where the clerk
has taken satisfactery precautions. The other is aimed at reducing the
cost on bonds to department employees. Several of the proposals relate
only to postal employees and would set up a fidelity bond trust by the
FORD & LIBRARY GERALD
employees themselves. Other cover all federal employees. One which is
receiving favorable comment in the discussions of the Committee on
(7)
Expenditures in the Executive Department is a bill which would have
the Government pay the bond premium but provide for coverage on a
blanket bond basis rather than have thousands of individual bonds. The
adoption of this proposal would result in considerable savings to the
employee and a much lower cost to the Government and seems superior to
handling the problem on an individual basis.
The members of the House and Senate committeew having jurisdiction
of post office department problems have no easy job. They are harassed
from all sides. The general public wants more and cheaper service.
Business, religious, educational and many other groups fight doggedly
against rate increases. Employee organizations are naturally interested
in legislation favorable to them. The committee's problems are further
complicated by the attitude of the Department which is reluctant to
make any favorable recommendations that will increase costs. Frankly
the committee members are not to be envied.
THE POSTMASTER GENERAL'S CURTAILMENT ORDER
Probably no order of the Postmaster General in history has
been as widely publicized or as warmly debated as the Postmaster General's
order directing that only one delivery a day will be given in residential
areas and two in business areas. Probably no other single decision by
the Postmaster General as it now stands will have as great an impact on
employees in the Department as this particular order because more than
10,000 employees are allegedly scheduled to be released as a direct
result.
I think the Pestmaster General might have helped the situation to
GERALD
FORD & LIBRARY
some degree for all concerned if he had given some prier notice that he
(8)
expected to curtail the delivery of mail as outlined in his order. I
direct your attention to the fact that if the Postmaster General wishes
to save money there are a number of other places where such savings
could be made in the postal service. It is my view that the whole
service curtailment issue should be examined by a responsible Congress-
ional Committee, and I was informed on Thursday that the House Committee
on Post Office and Civil Service is scheduled to begin exhaustive hearings
on the matter on June lst. I respectfully suggest that if the Postmaster
General is making this move in order to save taxpayers money, he should
say so. He should not use the excuse that there is a shortage of funds
appropriated by the Congress. I am informed, and the records indicate,
the Post Office Department was allocated practically all funds requested
from the Congress for this fiscal year.
This order, which was sprung upon the public totally without any
preliminary preparation, has created a great deal of consternation among
the users of the mails. It has the appearance of turning back the clock
from the standpoint of service and, if carried out, will disrupt delivery
service in all first-class and most of the second-class post offices.
In addition the tone of the order, together with directions of the Deputy
Postmaster General with respect to the threatened discharge of employees,
has had a drastic effect on the morale of our postal workers.
It is inconceivable that if reductions in force are carried on
in a proper and orderly manner that this curtailment order should nec-
essarily affect any regular or substitute employees since there are many
more than 10,000 temporary employees at the present time. Also, if the
FORD j LIBRARY GERALD
program were properly planned, normal attrition could be utilized for
reduction in force procedures and with few exceptions no present postal
(9)
employee including temperaries needs to lose his job. This order
unfortunately, like so many others in the postal service, was made on
a mass basis without preliminary experimental work. It was made before
other economies with a lesser impact on the public or the postal employees
had been instituted. These other economies have previously been brought
to the attention of the Postmaster General as a result of studies made
by the Congress and the Hoover Commission.
Let me give you several specific examples of what I mean. In
the Eightieth Congress, the Post Office and Civil Service Committee
suggested that the elimination of the individual recording of special
delivery mail be eliminated at a saving, which was estimated to be
$1,000,000 a year. This particular recommendation was taken up by the
Senate Appropriations Committee and the Department was requested to run
a sample test in two cities. These sample tests worked out very well
and then the policy was extended throughout the postal system. There
was no disturbance to the public. Service was actually improved during
the test period by the lessons that were learned in the experimental
period. Good sense would seem to dictate that this should have been the
procedure if a general curtailment of service was to be ordered. In
other words, the Department should know beforehand what the result would
be in each area from the standpoint of service to the public and the effect
on postal employees. The public and the postal employees should have been
properly prepared for such a move and given an opportunity to express their
views.
Another example of where economies might be effectuated and ser-
FORD i LIBRARY GERALD
vice improved is in the adoption of mechanical sorting equipment in the
larger post offices. The Postmaster General has stated such a policy is
(10)
a success at the Chicago post office where a machine was rebuilt and
improved after such a recommendation was made by the House Post Office
and Civil Service Committee during the Eightieth Congress. Wherever
practicable such machinery should be placed in other larger posteffices
in order to effect needed economies.
Public Law 231, Eighty-first Congress, established for the first
time in the postal service a research and development program. In the
establishment of such a program the Post Office Department, in its offi-
cial reports, merely left this idea entirely up to Congress without
making any specific recommendations. However, now that the law has been
enacted, the department has listed a whole succession of developments
which they expect to make and improve under this program.
THE HOOVER COMMISSION REPORT
Many people are asking questions about the Hoover Commission Re-
port and its effect on the postal service. You, as employees in the
postal service, are probably asked these questions more than anybody
else and, for that reason, you may be interested in a short summary as
to what action has been taken to date with respect to the Hoover Com-
mission proposals as they affect the postal service.
Reorganization Plan No. 3, which has already been approved and
is in operation, places into effect the following recommendations of the
Hoover Commission:
(1) Establishment of a Deputy Pestmaster General (Sec. 3).
(2) Establishment of a board of 7 advisors to the Postmaster
General (Sec. 6).
FORD & LIBRARY GERALD
(3) Abolishment of the Bureau of Accounts, including the
offices of the Controller and Purchasing Agent (Sec.5).
(11)
(4) Abolishment of the First, Second, Third and Fourth
Assistant Postmasters General and provides for the
appointment of four Assistant Postmasters General
(Sec. 4).
(5) Transfers to the Postmaster General the functions of all
subordinate offices and agencies of the Post Office De-
partment (Sec. 4).
Recommendations of the Hoover Commission Task Force with
respect to a research and development program have been placed into
effect by Public Law 231 (81st Congress). By an amendment to the rate
bill the House approved the Hoover Commission recommendation that the
Postmaster General be empowered to set the rates on special services.
The 1951 budget incorporates the Hoover Commission suggestion of a
Performance budget. Recommendations with respect to the accounting
and fiscal control of the postal service are incorporated in two house
bills, H.R.5775 and H.R.6395. These bills are under consideration by
the House Post Office and Civil Service Committee. Hearings on com-
panion bills have been held in the Senate. The differences in views
with respect to both of these bills concern the extent of control
over expenditures which will remain with the Comptroller General. When
these differences are resolved, legislation will probably be approved.
I hope we will have an opportunity to vote on the legislation during
this Congress.
The recommendations of the Hoover Commission with respect to
regionalization of the postal service have met with stiff opposition
from the Postmaster General Donaldson, who has said -
FORD i LIBRARY GERALD
(12)
"I would not want to be Postmaster General if this particular
recommendation were put into effect and I would have the responsibility
of providing present postal service."
As you know, of course, the postal service has already been
regionalized in many respects, such as the Railway Mail Service which
now has fifteen divisions. There is a similar regional setup for the
air mail service. The Central Accounting Office is another regional setup.
The pay for rural carriers is handled on a state-wide basis. The apparent
tendency within the postal service itself appears to favor a gradual de-
velopment toward the regionalization of the postal service. Unfortunately,
however, there has not been a corresponding delegation of authority by
the Department.
With respect to the Hoover Commission recommendation that the
air mail subsidy be separated from air mail payments, the House Committee
on Interstate and Foreign Commerce, which handles this legislation, is
currently considering bills which would effect this separation. This is
another complex problem involving the proper amount which should be desig-
nated as outright subsidy. In my opinion, we should arrive at a means
of separating this subsidy and thereafter, under the formula, the subsidy
should not be charged to our postal service. I firmly believe that our
domestic aviation system should be kept strong, not only as a means of
transpertation but as an asset in our national defense setup, but at the
same time such subsidies should not be charged against the Post Office
Department.
The final recommendation of the Hoover Commission pertains to
Senatorial approval of postmasters throughout the country. The alleged
objective is to eliminate "politics" from the postal service. Frankly
FORD i LIBRARY GERALD
(13)
I do not think "politics" as such are likely to be entirely eliminated
by such a change. Most of the "politics" takes place long before the
names are ever submitted to the United States Senate. Personally I favor
career men for such jobs. It has worked extremely well in Grand Rapids
under our able Postmaster, Art Hamilton. If the Hoover Commission re-
commendations will result in career appointments, I faver the proposal
moleheartedly. However, the question of Senatorial approval of certain
Presidential appointments, including postmasters, is a Senate prerogative
and is a matter which in my judgment should be solved first in the Senate
before the House takes any action.
I have tried 60 outline in my remarks what I believe are the
three major fields of interest to postal employees at the present time,
namely, legislation concerning postal employees, secondly, the order
of the Postmaster General curtailing service, and third and finally,
the Hoover Commission recommendations for the postal service. It is my
sincere hope that my comments have been helpful. Thank you.
(14)
GERALD FORD LIBRARY
For release
5/26/50
on delivery
SPEECH BY REPRESENTATIVE GERALD R. FORD, JR. AT JOINT CONVENTION OF
POSTAL SUPERVISORS AND POST OFFICE CLERKS IN GRAND RAPIDS, MICHIGAN,
SATURDAY, MAY 27, 1950
Mr. Toastmaster, honored and distinguished guests, members of the Michigan
Branch of Postal Supervisors, and members of the Michigan Federation of Post Of-
fice Clerks - It is a very real privilege and pleasure for me to meet with you at
this 32nd Annual Convention in my home city of Grand Rapids. We in the Furniture
Capital of the World welcome you and urge your return, individually and collect-
ively, to this community.
I am particularly pleased to have the opportunity to discuss with you some of
the perplexing and controversial problems relating to the postal service. The
problems to be discussed are not limited in scope to the welfare of postal em-
ployees, but rather directly concern our citizens as a whole. Even though some
of the technical problems may be of prime importance to those assembled here this
evening, because the Post Office Department literally touches the home of every
citizen of this country, the legislative and administrative decisions in eference
to the Department are of universal interest. I only ask that we all examine the
issues, not only as government officials and employees, but as citizens of the
greatest nation in the world today. This is the nation which the rest of the
world is depending on as the champion of freedom and the bulwark against the in-
sidious forces of totalitarianism. Under no circumstances in this time of crisis
should the United States as a whole or any group of its citizens take any action
that would weaken us internally or otherwise. Because of the long record of
patriotism and unselfishness of those here tonight I know your future activities
will be in the best interest of our republic.
The deficit in the Post Office Department, totalling $550,000,000 annually,
has become a major concern in our federal budget problems. This bugaboo has been
highlighted of late by the fact that the federal government has an increasing
deficit in prospect for the next fiscal year. As you probably know, since this
deficit has mounted to its present day proportions, the Post Office Department
has consistently recommended against the enactment of all proposed legislation
directly benefitting postal employees which involved additional costs to the De-
partment. A good example of this is the vigorous protest by the Department in
opposition to the $450.00 annual wage increase granted by the 80th Congress.
Our discussion tonight might well begin with a review of the legislation
enacted during the present Congress which directly benefits you as employees of
the Department.
POSTAL EMPLOYEES LEGISLATION
In 1949 during the first session of this Congress, Public Law 428 was ap-
proved. Under this law postal employees received a flat salary increase of $120
a year. Those employees in certain categories which did not have at least three
longevity grades were given these grades. For the first time, postmasters and
supervisors were given longevity grades. These grades amounted to $100 each ex-
cept in the case of fourth-class postmasters who received instead increases of 5%
of their base salary. For most postal supervisors, since practically all have 25
years of service, this meant an increase of $420 a year, in other words $300 for
their longevity grades and $120 as the result of the flat increase. Also, under
Public Law 428, the entrance salary for regular employees was increased by $200.
This was accomplished by elimination of the first two grades for regular employees.
Hereafter substitute employees will still enter the postal service in grade one
(1) but after they have served a year will be promoted to grade three (3). This
is a logical step although I believe it probably did not go far enough. For
example, when Public Law 134, 79th Congress, was approved, all employees who were
on the rolls of the Post Office Department received an increase of $400 a year.
However, the annual entrance salary for postal employees remained at $1,700.
For all other federal employees, the basic entrance salary was increased.
There were additional beneficial sections of the original bill (H.R.4495), as it
passed the House which were eliminated in conference with the Senate. I am refer-
ring to the increased annual leave for postal employees of 5 days a year and a uni-
form allowance. In my opinion the annual leave situation today is one of the most
controversial issues in Congress. Presently it is the subject of study by Con-
gressional Committees and the Bureau of the Budget and probably one of these days in
the near future firm recommendations will be made with respect to this problem.
Whatever these
Page One
GERALD FORD LIBRARY
recommendations :ay be, in my judgment they will inevitably be more favorable
for postal employees inasmuch as, at the present time, postal employees re-
ceive eleven days less annual leave and five days less sick leave than other
federal employees.
I am sure all of you are familiar with the Comptroller General's
decision which voided many increases which the Department proposed to make
under Public Law 428 and which were obviously the intent of Congress when
that law was passed. To correct these interpretations of the law the House
during this session considered a number of remedial bills. The first was
H.R.6553, to permit rural carriers to count all of their time in postal
service toward longevity grades. The second was H.R.6603. to permit custodial
employees to count certain service toward their longevity grades. When these
bills reached the Senate, it was suggested by the Post Office Department and
the Comptroller General that there be a general review by Congress of the
decision of the Comptroller General and that the language of Public Law 428
be clarified in one legislative proposal. Accordingly, H.R.6553 was amended
in the Senate. This bill is now Public Law 500, 81st Congress and under it
the following is established:
Three longevity grades to which all employees will be entitled after
13, 18 and 25 years of service. These longevity increases are of $100 per
annum for regular employees, except that fourth class postmasters will be paid
5% of their base pay rather than the $100. In qualifying for these grades,
employees may count all years of postal service and custodial employees may
count their years of service both with the Treasury Department and the Post
Office Department. Special Delivery messengers may count their time when
they were paid on a fee basis. Clerks in third-class post offices may sount
the time they were working in the post offices as employees of the postmasters
prior to their classification under Public Law 134, 79th Congress. Temporary
employment may be counted where it is for a period of more than one year or
where it is continuous to the date of appointment as a classified employee.
Some employees may find it advantageous to remain under the present
system of longevity promotions. This law will permit them to select either
the present system or the new longevity grades. However, gradually there
will be a conversion to the new longevity grades system of 13, B and 25 years
for all employees. This will simplify the law with respect to longevity pro-
motions and is a definite improvement.
The Senate amendment further provides that longevity increases
granted supervisors will not be counted in determining whether such a super-
visor's malary exceeds $4170. This is the top limit permitted supervisors
who are granted overtime compensation on Sundays, holidays or during the
month of December.
Another piece of legislation of interest to postal employees is
H.R.87. This bill, as you know, will give veterans who entered the postal
service after World War II credit for their military S ervice toward their
promotions in the postal service on a pro rata basis. The basic logic for
this particular legislation is based upon the fact that the time a man spent
in the military service should be given the same consideration as that time
spent in the postal service toward promotion. In other government positions
outside of the postal service many veterans entered Civil Service for the
first time and qualified for higher classifications based upon their military
experience and skill. For example, the prospective employee might have been
an adjutant in the Army and by virtue of that experience qualified for a high
grade position as a personnel officer under the federal Civil Service. Many
veterans used their experience as radio technicians, electricians, and other
capacities in the military service as a basis for qualifying for certain Civil
Service examinations and the records show that the policy of the Civil Service
Commission was liberal in this regard. Furthermore, veterans who entered private
industry, in many cases, were also able to use military experience as a basis
for obtaining positions at a higher rate of pay. In the postal service, how-
ever, regardless of the qualifications of the individual, educational back-
ground, business experience or military a ssignment, a prospective employee
must still enter at the lowest pay grade.
The Senate Post Office and Civil Service Committee has already recom-
mended favorably H.R.87 as it passed the House, including the July 1, 1950 cut-
off date, and it is expected that the bill will come up for Senate considera-
tion at the next call of the Senate Calendar. Because of the Department's
FORD
objection to the proposal there is some likelihood that the President may veto
the bill but that obstacle will have to be overcome orce the Senate acts
favorably.
LIBRARY
Page Two
The House Post Office and Civil Service Committee has presently
under consideration a number of bills which are designed to reclassify the
salaries of postmasters and supervisors. Unquestionably most of the super-
visors here tonight are familiar with the terms of H.R. 4757, which is under
active consideration by the Committee, Hearings have already started on this
bill in both the House and Senate Committees. Generally speaking, there
seems to be agreement on the point that the classification of postmasters
and supervisors should be reexamined, particularly in the light of the suc-
cessive flat increases which have occurred beginning in 1945. It is fair to
say that the consensus among the committee members seems to be that if inequi-
ties and inequalities can be identified, they should be corrected and, further-
more, there is a similar feeling in the House favoring such an approach, and
those of us not on the committee simply await the initial action by that group.
There has been, however, a modifying factor with respect to flat
increases as they affect postmasters and supervisors. I refer specifically
to the over-all increase in the gross receipts in almost every area. In 1936,
for example, the gross receipts of the postal service were $665,000,000. Today,
for fiscal year 1949, they are $1,571,800,000. In Grand Rapids, during the
period from 1936 the gross receipts have grown from $1,303,965 to $3,567,042 in
1949. If the postal rate increase bill passed by the House is approved by the
Senate, postal revenues will be increased by another $150,000,000 which in ef-
fect will represent an increased salary for postmasters and supervisors.
There is other legislation of interest to supervisors and clerks
which is presently under active consideration by Committees of Congress. First,
a bill sponsored by Representative Rees of Kansas, H.R.2586, which would make
it possible to relieve clerks who have made payments on money orders where
the signature has been forged and where the clerk has taken satisfactory pre-
cautions. The other is aimed at reducing the cost on bonds to department em-
ployees. Several of the proposals relate only to postal employees and would
set up a fidelity bond trust by the employees themselves. Others cover all
federal employees. One which is receiving favorable comment in the discussions
of the Committee on Expenditures in the Executive Department is a bill which
would have the Government pay the bond premium but provide for coverage on a
blanket bond basis rather than have thousands of individual bonds. The adoption
of this proposal would result in considerable savings to the employee and a much
lower cost to the Government and seems superior to handling the problem on an
individual basis.
The members of the House and Senate committees having jurisdiction
of post office department problems have no easy job. They are harassed from
all sides. The general public wants more and cheaper service. Business, re-
ligious. educational and many other groups fight doggedly against rate in-
creases. Employee organizations are naturally interested in legislation favor-
able to them. The committee's problems are further complicated by the attitude
of the Department which is reluctant to make any favorable recommendations that
will increase costs. Frankly the committee members are not to be envied.
THE POSTMASTER GENERAL'S CURTAILMENT ORDER
Probably no order of the Postmaster General in history has been as
widely publicized or as warmly debated as the Postmaster General's order di-
recting that only one delivery a day will be given in residential areas and
two in business areas. Probably no other single decision by the Postmaster
General as it now stands will have as great an impact on employees in the
Department as this particular order because more than 10,000 employees are
allegedly scheduled to be released as a direct result.
I think the Postmaster General might have helped the situation to
some degree for all concerned if he had given some prior notice that he expected
to curtail the delivery of mail as outlined in his order. I direct your attention
to the fact that, if the Postmaster General wishes to save money, there are a
number of other places where such savings could be made in the postal service.
It is my view that the whole service curtailment issue should be examined by a
responsible Congressional Committee, and I was informed on Thursday that the
House Committee on Post Office and Civil Service is scheduled to begin exhaustive
hearings on the matter on June lst. I respectfully suggest that if the Post-
master General is making this move in order to save taxpayers money, he should
say SO. He should not use the excuse that there is a shortage of funds appro-
priated by the Congress. I am informed and the records indicate the Post Office
Department was allocated practically all funds requested from the Congress for
this fiscal year.
This order, which was sprung upon the public totally without any pre-
liminary preparation, has created a great deal of consternation among the users
of the mails. It has the appearance of turning back the clock from the stand-
point of service and, if carried out, will disrupt delivery service in all
Page Three
first-class and most of the second-class post offices. In addition the tone
of the order, together with directions of the Deputy Postmaster General with
respect to the threatened discharge of employees, has had a drastic effect on
the morale of our postal workers.
It is inconseivable that if reductions in force are garried on in a
proper and orderly manner that this curtailment order should necessarily affect
any regular or substitute employees since there are many more than 10,000
temporary employees at the present time. Also, if the program were properly
planned, normal attrition could be utilized for reduction in force procedures
and with few exceptions no present postal employee, including temporaries, needs
to lose his job. This order unfortunately, like so many others in the postal
service, was made on a mass basis without preliminary experimental work. It
was made before other economies with a lesser impact on the public or the postal
employees had been instituted. These other economies have previously been
brought to the attention of the Postmaster General as a result of # tudies made
by the Congress and the Hoover Commission.
Let me give you several specific examples of what I mean. In the
Eightieth Congress, the Post Office and Civil Service Committee suggested that
the elimination of the individual recording of special delivery mail be eliminated
at a saving, which was estimated to be $1,000,000 a year. This particular
recommendation was taken up by the Senate Appropriations Committee and the
Department was requested to run a sample test in two cities. These sample
tests worked out very well and then the policy was extended throughout the
postal system. There was no disturbance to the public. Service was actually
improved during the test period by the lessons that were learned in the experi-
mental period. Good sense would seem to dictate that this should have been the
procedure if a general curtailment of service was to be ordered. In other words,
the Department should know beforehand what the result would be in each area
from the standpoint of service to the public and the effect on postal employees.
The public and the postal employees should have been properly prepared for such
a move and given an opportunity to express their views.
Another example of where economies might be effectuated and service
improved is in the adoption of mechanical sorting equipment in the larger post
offices. The Postmaster General has stated such a policy is a success at the
Chicago post office where a machine was rebuilt and improved after such a recom-
mendation was made by the House Post Office and Civil Service Committee during
the Eightieth Congress. Wherever practicable such machinery should be placed in
other larger post offices in order to effect needed economies.
Public Law 231, Eighty-first Congress, established for the first time
in the postal service a research and development program. In the establishment
of such a program the Post Office Department, in its official reports, merely
left this idea entirely up to Congress without making any specific recommenda-
tions. However, now that the law has been enacted, the Department has listed
a whole succession of developments which they expect to make and improve under
this program.
THE HOOVER COMMISSION REPORT
Many people are asking questions about the Hoover Commission Report
and its effect on the postal service. You as employees in the postal service,
are prabably asked these questions more than anybody else and, for that reason,
you may be interested in a short summary as to what action has been taken to
date with respect to the Hoover Commission proposals as they affect the postal
service.
Reorganization Plan No. 3, which has already been approved and is in
operation, places into effect the following recommendations of the Hoover Com-
mission:
(1) Establishment of a Deputy Postmaster General (Sec.3).
(2) Establishment of a board of 7 advisors to the Postmaster General
(Sec. 6).
(3) Abolishment of the Bureau of Accounts, including the offices of
the Controller and Purchasing Agent (Sec. 5).
(4) Abolishment of the First, Second, Third and Fourth Assistant
Postmasters General and provides for the appointment of four
Assistant Postmasters General (Sec.4).
(5) Transfers to the Postmaster General the functions of all subordinate
offices and agencies of the Post Office Department (Sec. 4).
GERALE FORD LIBRARY
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Recorriendations of the Hoover Commission Task Force with respect
to a research and development program have been placed into effect by Public
Law 231 (81st Congress). By an amendment to the rate bill the House approved
the Hoover Commission recommendation that the Postmaster General be empowered
to set the rates on special services. The 1951 budget incorporates the Hoover
Commission suggestion of a Performance budget. Recommendations with respect to
the accounting and fiscal control of the postal service are incorporated in two
house bills, H.R.5775 and H.R.6395. These bills are under consideration by the
House Post Office and Civil Service Committee. Hearings on companion bills
have been held in the Senate. The differences in views with respect to both
of these bills concern the extent of control over expenditures which will remain
with the Comptroller General. When these differences are resolved, legislation
will probably be approved. I hope we will have an opportunity to vote on the
legislation during this Congress.
The recommendations of the Hoover Commission with respect to region-
alization of the postal service have met with stiff opposition from Postmaster
General Donaldson, who has said -
"I would not want to be Postmaster General if this particular recommendation
were put into effect and I would have the responsibility of providing pre-
sent postal service."
As you know, of course, the postal service has already been region-
alized in many respects, such as the Railway Mail Service which now has fifteen
divisions. There is a similar regional setup for the air mail service. The
Central Accounting office is another regional setup. The pay for rural carriers
is handled on a state-wide basis. The apparent tendency within the postal
service itself appears to favor a gradual development toward the regionalization
of the postal service. Unfortunately, however, there has not been a corres-
ponding delegation of authority by the department.
With respect to the Hoover Commission recommendation that the air
mail subsidy be separated from air mail payments, the House Committee on Inter-
state and Foreign Commerce, which handles this legislation, is currently con-
sidering bills which would effect this separation. This is another complex
problem involving the proper amount which should be designated as outright
subsidy. In my opinion, we should arrive at a means of separating this subsidy
and thereafter, under the formula, the subsidy should not be charged to our
postal service. I firmly believe that our domestic aviation system should be
kept strong, not only as a means of transportation but as an asset in our
national defense setup, but at the same time such subsidies should not be
charged against the Post Office Department.
The final recommendation of the Hoover Commission pertains to Senat-
orial approval of postmasters throughout the country. The alleged objective
is to eliminate "politics" from the Postal service. Frankly, I do not think
"politics" as such are likely to be entirely eliminated by such a change. Most
of the "politics" takes place long before the names are ever submitted to the
United States Senate. Personally I favor career men for such jobs. It has
worked extremely well in Grand Rapids under our able Postmaster, Art Hamilton.
If the Hoover Commission recommendations will result in career appointments, I
favor the proposal wholeheartedly. However, the question of Senatorial approval
of certain Presidential appointments, including postmasters, is a Senate
prerogative and is a matter which in my judgment should be solved first in the
Senate before the House takes any action.
I have tried to outline in my remarks what I believe are the three
major fields of interest to postal employees at the present time, namely, legis-
lation concerning postal employees, secondly, the order of the Postmaster
General curtailing service, and third and finally, the Hoover Commission recom-
mendations for the postal service. It is my sincere hope that my comments have
been helpful. Thank you.
GERALD.
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