White House Press Release, Statement by President Harry S. Truman

1711 317 HOLD FOR RELEASE HOLD FOR RELEASE HOLD FOR RELEASE JULY 3, 1948 CONFIDENTIAL: The following Statement by the President MUST BE HELD IN STRICT CONFIDENCE and no portion, synopsis or intimation may be given out or published UNTIL RELEASED. NOTE: Release is automatic at 6:00 P. M., E.D.T., today, Saturday, July 3, 1948. The same release applies to all newspapers, radio commentators and news broadcasters. PLEASE EXERCISE THE UTMOST CARE TO PREVENT PREMATURE PUBLICATION OR RADIO ANNOUNCEMENT. EBEN A. AYERS Assistant Press Secretary STATEMENT BY THE PRESIDENT I have today signed the Postal Rate Revision and Federal Employee Salary Act of 1948 (H. R. 6916). I have done so even though the Act meets neither the needs of the employees nor those of the Government NARA In my Budget Message in January, I stated that the best approach to the cost-of-living problem faced by Federal employees was to enact a comprehensive program to hold living costs down. This would not only have aided Federal workers but would also have given relief to our people generally. But the Congress did not enact such a program, and prices have continued to rise. Since the Congress failed to take action to hold down the cost of living, it is only fair that Federal employees should be given pay increases to offset in some degree the constantly rising cost of living. It is unfortunate, however, that the Congress, in attempting to grant relief, has acted in such a manner as to aggravate an already serious situation. The Act grants a flat increase to employees covered by the Classification Act. Differences between the upper and lower pay grades, already substantially reduced by the pay raises given in 1945 and 1946, are further decreased by this Act. The effect of this is to reduce seriously the opportunity for salary advancement which should go with increased responsibility. For example, young chemists who have just received their undergraduate degrees will receive, under this Act, $2974.80 a year for working in Government laboratories. Working alongside of these recent graduates will be some of the Nation's outstanding scientists who, after twenty or twenty-five years of service, will be receiving only $10,330.00 as the heads of these laboratories. Another fundamental defect in the Act is that when this law becomes effective the members of many of our boards and commissions and some heads of agencies will be `receiving $10,000 while groups of their employees will be compensated at the rate of $10,330. In other words, those who are ultimately held responsible for what happens in these agencies will be getting less money than some of the persons employed by them. This is, of course, a violation of the principles of sound management. I know of no other way to characterize it than to say that it is ridiculous. Certainly nowhere else could one find a situation comparable to it in either public or private employment. No successful industrial concern would tolerate a situation which provided as narrow a spread between entrance salaries and the (OVER)