1st Session No. 1015 AUTHORIZE THE CREDITING OF SERVICE RENDERED BY PERSONNEL (ACTIVE OR RETIRED) SUBSEQUENTLY TO JUNE 30, 1932, IN THE COMPUTATION OF THEIR ACTIVE OR RETIRED PAY AFTER JUNE 30, 1935 MAY 24, 1935.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. ROGERS of New Hampshire, from the Committee on Military Affairs, submitted the following REPORT [To accompany S. 2287] The Committee on Military Affairs, to whom was referred the bil (S. 2287) to authorize the crediting of service rendered by personnel (active or retired) subsequently to June 30, 1932, in the computation of their active or retired pay after June 30, 1935, having considered the same, submit the following report thereon, with the recommendation that it do pass: The purpose of the bill is to credit the personnel of the services whose compensation is fixed by the Pay Adjustment Act of 1922 with service rendered during the fiscal years 1933, 1934, and 1935 for the purpose of computing their pay after June 30, 1935. The Pay Adjustment Act of 1922 establishes the rate of pay for the personnel of the Army, Navy, Marine Corps, Coast Guard, Coast and Geodetic Survey, and the Public Health Service. The rates of pay are fixed in six periods for officers below the rank of brigadier general in the Army and Marine Corps and rear admiral in the Navy, ranging from $1,500 to $4,000 per annum. Officers advance in pay periods as the results of length of service or promotion. In addition, the Pay Adjustment Act provides for an increase of 5 percent of the base pay of the period for each 5 years of service up to 30 years. Section 201 of the act of June 30, 1932, as continued in force up to and including the fiscal year 1935, suspended longevity increases for the fiscal years 1933, 1934, and 1935. Pay-period advancements were suspended during the fiscal years 1933 and 1934, and because of the wording of the economy laws and the interpretations of the Comptroller General the service rendered by officers during these 3 years will not be counted in the future without this remedial legislation, which will make the various officers of the services above mentioned suffer a permanent reduction in pay. This double penalty placed upon these officers, and particulary the younger officers, by the economy laws, is unjust and if continued would be detrimental to the morale of these services. The President and the Director of the Budget have suggested this legislation in the President's Budget message of January 3, 1935, and such money as was needed for this purpose was included in the Budget. This bill is recommended by the War and Navy Departments and letters from the Secretary of War and the Secretary of the Navy are hereby made a part of this report. No back longevity pay for the fiscal years 1933, 1934, and 1935 is authorized. Hon. JOHN J. MCSWAIN, Chairman Committee on Military Affairs, House of Representatives. MAY 3, 1935. DEAR MR. MCSWAIN: Careful consideration has been given to the bill (S. 2287) to authorize the crediting of service rendered by personnel (active or retired) subsequently to June 30, 1932, in the computation of their active or retired pay after June 30, 1935, which you transmitted to the War Department under date of April 22, 1935 for information and the views of the Department relative thereto. Section 201 of the Legislative Appropriation Act, fiscal year 1933 (Economy Act of June 30, 1932) stipulated that "All provisions of law which confer upon civilian or noncivilian officers or employees of the United States Government or the municipal government of the District of Columbia automatic increases in compensation by reason of length of service or promotion are suspended during the fiscal year ending June 30, 1933." By section 4 of the act of March 20, 1933, the above stipulation was continued in effect during the fiscal year 1934. The pay of the Army, Navy, Marine Corps, Coast Guard, Public Health Service, and Coast and Geodetic Survey is governed by the Pay Readjustment Act of June 10, 1922. Under this act the rate of pay is determined by grade and, to a large extent, by length of service. There are six stages of base pay, from the lowest to the highest rates, called "pay periods", which depend upon both grade and length of service. In addition, officers receive longevity increases upon base pay; that is, an increase of 5 percent of base pay for each 3 years of service, up to 30 years. The act also fixes certain pay maximums which may not be exceeded. Thus the above-mentioned economy acts suspended both the pay period and the longevity increases during the fiscal years 1933 and 1934. Section 24 of the Independent Offices Appropriation Act, fiscal year 1934, approved March 28, 1934, in effect removed the restriction on advances in pay periods, but continued the restriction on longevity advances for the fiscal year 1935. The Comptroller General ruled, however, on May 24, 1934, that as section 201 of the economy act completely suspended the operation of all Federal statutes authorizing increases in compensation, all such statutes must necessarily be regarded as not having been in existence during the period July 1, 1932, to June 30, 1934, inclusive. The effect of the ruling would have been to nullify, for promotion and pay-period purposes for all future years, those 2 years of service in the careers of all civilian and noncivilian officers and employees. Obviously it was not the intent of Congress thus to project the effect of the economy act indefinitely into the future. Accordingly, on June 27, 1934, legislation was enacted (Public, No. 480, 73d Cong) amending the Independent Offices Appropriation Act, fiscal year 1935, by providing specifically that in the administration of the act restoring the right to promotion, together with the automatic increases in compensation attendant thereto, "all services rendered by * officers and employees prior to July 1, 1932, and subsequent to June 30, 1932, shall be credited to the officers and employees, and such officers and employees promoted to the grade to which they would have progressed had section 201 * * not been enacted." Thus, notwithstanding the Comptroller General's ruling upon the economy act, the right of officers and employees to be advanced in pay period by reason of promotion and length of service, but not the right to longevity increases, was restored. Unless reenacted, all "economy" measures will terminate on June 30, 1935. It is believed that the reductions and restrictions upon pay of officers and employees of the Government, contained in those measures, were intended by Congress to be of a temporary nature. Yet, under the ruling of the Comptroller General the period of the economy acts, which including the fiscal year 1935 will have grown to a total of 3 years, may not be considered in computing longevity increases even after June 30, 1935. That is, all persons of the six services whose ray is governed by the Pay Readjustment Act of 1922 will suffer a reduction of 5 percent in their future pay until they have completed 33 years of service. And this effect will be felt only by those six Government services governed by the Pay Readjustment Act, for laws now enacted entirely restore normal pay to other officers and employees of the Government. In order that there might be no question about the right to count service during the economy-act period, the President, in his Budget message to Congress on January 3, 1935, recommended the enactment of legislation identical with S. 2287, and in his Budget which he submitted to Congress the President included the funds necessary to restore full longevity pay to the personnel affected. These funds were contained in the Department of Commerce, the Treasury Department, and the War Department appropriation bills for the fiscal year 1936, which have now been passed by Congress. Therefore any cost resulting from S. 2287 is already provided for. Thus it appears that both Houses of Congress have already indicated their desire that full longevity credit for pay for the uniformed services should be restored effective with the fiscal year 1936. Yet, as the act of June 27, 1934, with reference to the counting of service, referred to the act of March 28, 1934, which latter act did not provide for the elimination of the restriction on longevity increases, the enactment of S. 2287 is necessary in order to provide assurance that the decision of the Comptroller General of May 24, 1934, insofar as it may still be held to nullify service during the economy-acts period for longevity purposes, will be overcome. In view of the above, in order to avoid continuing the effects of the economy acts indefinitely into the future for the services governed by the Pay Readjustment Act of 1922, the War Department strongly urges the enactment of S. 2287. Sincerely yours, GEO. H. DERN, Secretary of War. The CHAIRMAN COMMITTEE ON NAVAL AFFAIRS, NAVY DEPARTMENT, Washington, March 25, 1935. United States Senate, Washington, D. C. MY DEAR MR. CHAIRMAN: The Navy Department has noted the introduction of the bill S. 2287, to authorize the crediting of service rendered by personnel (active or retired) subsequently to June 30, 1932, in the computation of their active or retired pay after June 30, 1935, and its reference to your committee. The purpose of this bill is to credit the personnel of the services whose compensation is fixed by the Pay Adjustment Act of 1932 with service rendered during the fiscal years 1933, 1934, and 1935 for the purpose of computing their pay after June 30, 1935. No back longevity pay for the fiscal years 1933, 1934, and 1935 is authorized. The Pay Adjustment Act of 1922 (42 Stat. 686) establishes the rates of pay for the personnel of the Army, Navy, Marine Corps, Coast Guard, Coast and Geodetic Survey, and the Public Health Service. The rates for six pay periods are fixed for officers below the grades of brigadier general in the Army and Marine Corps and rear admiral in the Navy, ranging from $1,500 to $4,000 per annum. Officers advance in pay periods as the result of length of service and promotion. In addition, the Pay Adjustment Act provides for an increase of 5 percent of the base pay of the period for each 3 years of service up to 30 years. Section 201 of the act of June 30, 1932 (47 Stat. 403), as continued in force up to and including the fiscal year 1935, suspended longevity increases for the fiscal years 1933, 1934, and 1935. Pay-period advancements were suspended during the fiscal years 1933 and 1934. Because of the wording of the economy laws, and the interpretations of the Comptroller General, the service rendered by officers during these 3 fiscal years will not be counted in the future without remedial legislation, and the officers of the various services will suffer a permanent reduction of pay. The Navy Department believes that such a result will be highly detrimental to the morale of the naval service and will cause undue hardship and distress, particularly among the younger officers. In the appendix of the Budget of the United States Government for the fiscal year ending June 30, 1936, as submitted to Congress with the President's message of January 3, 1935, legislation in the identical language of S. 2287 was suggested to Congress to remedy this situation and the money was included in the Budget for this purpose. The Navy Department recommends the enactment of S. 2287. Sincerely yours, CLAUDE A. SWANSON. [8. 2287, 74th Cong., 1st sess.] AN ACT To authorize the crediting of service rendered by personnel (active or retired) subsequently to June 30, 1932, in the computation of their active or retired pay after June 30, 1935 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That notwithstanding the suspension during the fiscal years 1933, 1934, and 1935 of the longevity increases provided for in the tenth paragraph of section 1 of the Pay Adjustment Act of 1922, the personnel (active or retired) so affected shall be credited with service rendered subsequently to June 30, 1932, in computing their active or retired pay accruing subsequently to June 30, 1935: Provided, That this section shall not be construed as authorizing the payment of back longevity pay for the fiscal years 1933, 1934, and 1935, which would have been paid during such years but for the suspension aforesaid. Passed the Senate April 15, 1935. Attest: EDWIN A. HALSEY, Secretary. О 1st Session No. 1016 TO AMEND SECTION 4865 OF THE REVISED STATUTES, AS AMENDED MAY 24, 1935.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. PALMISANO, from the Committee on Education, submitted the following REPORT [To accompany S. 1180] The Committee on Education, to whom was referred the bill (S. 1180) to amend section 4865 of the Revised Statutes, as amended, having considered the same, report favorably thereon with the recommendation that the bill be passed. The purpose of the bill is to increase the number of beneficiaries from the several States and Territories who may be admitted to the collegiate department of the Columbia Institution for the Deaf, District of Columbia, from 125 to 145. The bill was introduced at the request of the Secretary of the Interior, who has endorsed the proposal, and full information indicating the conditions at the Columbia Institution for the Deaf and the assistance being extended to the deaf mutes there is contained in the letters of the Secretary of the Interior submitted herewith. Hon. DAVID I. WALSH, INTERIOR DEpartment, Washington, January 17, 1935. Chairman Committee on Education and Labor, MY DEAR MR. CHAIRMAN: Enclosed is a copy of a proposed bill to amend section 4865 of the Revised Statutes, as amended, increasing the number of beneficiaries from the several States and Territories who may be admitted to the collegiate department of the Columbia Institute for the Deaf. For the education of deaf mutes in the District of Columbia, the United States has established and maintains the Columbia Institution for the Deaf. The advanced department, known as "Gallaudet College", accepts students from outside the District, most of whom are in poor circumstances and need the help of the scholarships offered by the institution. Although Congress has restricted |