Evening star., 1932-12-07
l154, ,lAS,0(0 CUT
!, IN HOOVER'S PLAN
How u. S. Workers Would Be
Y Affected Outlined in Bud
get Message.

wv NtSSSASSs
The two-ply pay cut for Government
workers recommended by President
Hoover would lop $154, ,748,000 off the
rolls in the next fiscal year, 1t wa.
disclosed today, as the Budget went
forward to Congress, accompanied by a
message from the Chief Executive dis
cussing its provisions.
The substance of the program was
outlined yesterday in the Presidents
annual message.
BY continuing for another year the
economy act, the message today said
the furlough provision entailing ar
81-3 per cent wage reduction would
make possible saving of S99, 1856, 900.
The imposition of the temporary
IL per cent cut on all salary above
$1,000 would produce an additional
SIS, 100000, Mr.. Hoover estimated.
The total under the economy act
was divided: $97, ,398, 900 for the execu-
tive branch of the Government (and
inclusive of the judiciaD, and ST.
968, 900 for the legislative. AS Presi-
dent Hoover pointed out, however, leg
islative estimates are not subject to re-
vision by the Chief Executive, and 1t
Ss therefore up to Congress to say II
isis last item of saving is to be effected.
The budget itemizes the economy
act reductions. but the total that
would accrue under the IL per cent
plan is shown only in lump sum, a
footnote explaining that it pertains to
al of the appropriation items which
make provision for personal services"
and adding that "a statement will be
made available to the proper commit
tees Of Congress showing the amount
Of the reduction which pertains to each
appropriation item"
Temporary Reduction.
The message explains that this is to
be "a temporary reduction in the rate
Of pay of Federal personnel, to be ap-
piled to all civil employees prior to the
application of the provisions Of" the
economy act.
The text of the legislation proposed
to carry it into effect follows:
During the fiscal year ending June
30, 1884
"(a) The compensation for each ci-
villain Office, position, or employment In
any branch or service of the United
States Government or the government
of the District of Columbia is hereby
reduced as follows: Compensation at an
annual rate of 81, 900 or less shall be ex-
empt from reduction; and compensa-
tion at an annual rate in excess of
$1,000 shall be reduced by IL per
centum of the amount thereof in ex-
cess of $1,000.
"tb) The term compensation shall
be defined and computed as provided
in subsections (b) and Co OF Section
104 of Part II of the act entitled An
act making appropriations for the leg
islative branch of the Government for
the fiscal year ending June 80, 1888,
and for other purposes approved June
30, 1882 Economy Act, definition), In
so far as such subsections are appli-
cable to any civilian office, position, or
employment.
"(c) In the case of corporation the
ma jority of the stock of which Is owned
by the United States, the holders of
the stock on behalf of the United
States, or such persons as represent the
interest Of the United States in such
corporation, shall take such action as
may be necessary to apply the provi-
sions Of subsection (a) herein to Offices,
positions, and employmentS under such
corporation and to officers and en-
ployes thereof.
! Fixed Compensation Exempt.
"(d) The reduction provided herein
shall not apply to any Office, position,
or employment the amount Of compen-
sation of which is expressly fixed by in
ternational agreement any Office, posi-
ton, or employment the compensation
of which is paid under the terms of
any contract in effect on the date of
the enactment of this act if such COM
pensation may not lawfully be reduced;
any Office the compensation of which
may not under the Constitution. be di-
minished during the term of office; any
ONCE, position, or employment the COM
pensation for which is adjustable to
conform to the prevailing rate for SINH
lar work, but the wage board or other
body charged with the duty of making
such adjustments shall take such ac-
ton as may be necessary to make such
adjustment effective July /, 1888; nor
to any office, position, or employment
the compensation for which is derived
from assessments on banks and or is
not paid from the Federal Treasury"
In recommending this second cut,
which with the first is estimated to
mean an average reduction of 14.8 per
cent for all Federal employees getting
more than 81, 900 annually, the Presi-
dent went beyond the proposal of the
Budget Bureau, which was limited to
carrying over the economy act.
The act itself, If the recommendation
Is followed, will continue in effect with
little change.
One modification would restore to
wage boards (such as operate at navy
yards and arsenals, for example) the
power to make wage adjustments, which
was suspended this year. This would
be accomplished by striking out the
covering section in the economy act,
and writing a new provision in the
legislation covering the II per cent cut.
| Filling Of Vacancies.
The other principal change would
but in the hands of the heads Of Gov
ernment establishments the power to
fill necessary vacancies, which now re-
poses with the President.
Other notifications are designed only
to bring up to date the act which
started out, in general, as one-year
proposition, although two Of its pro-
visions which have been the subject of
controversy - retirement and marital
SPECIAL NOTICES.
THE ANNUAL MEETING OF THE STOCK
holders of the Columbia Permanent Building
Association of the District OF Columbia for