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Memorandum for Mr. Randolph on Higher Pay for Federal Executives March 24, 1946 If the Congress and the taxpayers of the United States want more efficient and economical Government, it is time to grant higher pay to Federal executives. The quickest way to reduce government expenditures and turn out better results is through improved manage- ment. Almost daily there are criticisms of the waste and dupli- cation of the Federal Government. Some of these charges of ineffi- ciency are all to true, but they generally are not due to the in- competence of the individual workers on the payroll, but rather to the way we organize and use them. By and large, there is no finer body of employees than those who work for the Federal Government, and I a.m glad that Congress at long last is taking steps to improve their salaries. But if we want efficiency, we have to have capable managers. We have neglected the managers in the Federal business. If you ask me I would say we don't deserve the many excellent mans- gers we do have, when you consider the niggardly way we have paid them. Down through the years, they have not had their due. Every time the Congress has had a pay bill before it, the short and has been given to those who carry the heaviest load -- the Federal executives. When the schedules of pay were set up under the original Classification Act of 1923, it was recognized that in the higher levels the rates fixed for the Government were substantially lower than prevailing rates in private industry. Each time those schedules have been adjusted, larger percentages have been given in the lower ranks and smaller increases have been provided for the higher levels. Thus progressive- ly the disparity with private industry has widened. Yet we know that any private business in seeking to cut its Costs goes out and gets the most capable managers it can find. Right now if we are to get efficiency of operation, we must reward our Federal managers at least as well as we are prepared to reward our scientists and engineers. The proposal of salaries of $12,000 and $14,000 for physical scientists doing work essential to the national defense is a step in the right direct, but it is only one step. The evidence pointing

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    "ocrText": "Memorandum for Mr. Randolph on Higher Pay for Federal Executives\nMarch 24, 1946\nIf the Congress and the taxpayers of the United States want\nmore efficient and economical Government, it is time to grant higher\npay to Federal executives. The quickest way to reduce government\nexpenditures and turn out better results is through improved manage-\nment.\nAlmost daily there are criticisms of the waste and dupli-\ncation of the Federal Government. Some of these charges of ineffi-\nciency are all to true, but they generally are not due to the in-\ncompetence of the individual workers on the payroll, but rather to\nthe way we organize and use them. By and large, there is no finer\nbody of employees than those who work for the Federal Government,\nand I a.m glad that Congress at long last is taking steps to improve\ntheir salaries. But if we want efficiency, we have to have capable\nmanagers. We have neglected the managers in the Federal business.\nIf you ask me I would say we don't deserve the many excellent mans-\ngers we do have, when you consider the niggardly way we have paid\nthem.\nDown through the years, they have not had their due. Every\ntime the Congress has had a pay bill before it, the short and has been\ngiven to those who carry the heaviest load -- the Federal executives.\nWhen the schedules of pay were set up under the original Classification\nAct of 1923, it was recognized that in the higher levels the rates\nfixed for the Government were substantially lower than prevailing rates\nin private industry. Each time those schedules have been adjusted,\nlarger percentages have been given in the lower ranks and smaller\nincreases have been provided for the higher levels. Thus progressive-\nly the disparity with private industry has widened. Yet we know that\nany private business in seeking to cut its Costs goes out and gets\nthe most capable managers it can find. Right now if we are to get\nefficiency of operation, we must reward our Federal managers at least\nas well as we are prepared to reward our scientists and engineers.\nThe proposal of salaries of $12,000 and $14,000 for physical\nscientists doing work essential to the national defense is a step in\nthe right direct, but it is only one step. The evidence pointing"
}