Evening star., 1932-07-25
Economy Act Applies Where
Old Law Fails to Compel
Reductions.
NUMBER AFFECTED
IN D. C. YET UNCERTAIN
Decision Explains Full Automatic
Reduction in Relation to Legis-
lative Furlough.

PoStmaSters and other officials of
post Offices throughout the country, in
cluding Washington, whose salaries are
based on postal receipts, must take the
full amount of automatic reduction in
pay this year provided in the old law,
which varies their pay according to
postal receipts, regardless of the econ
omy act, it was decided today by Con-
troller General McCarl.
This decision was interpreted as of
Importance to this specified group OF
officials because of the big slump in
postal receipts generally throughout the
country.
Postmaster Mooney Of this city ex-
planned that his office had been eagerly
awaiting this decision by McCarl, but
in advance of receiving an official copy.
he could not explain definitely how
many people would be affected nor
lust how much they would be affected.
Sweeping in Effect.
It was explained, however, In the
office of Representative James Mead,
chairman of the House Committee on
Post Offices and Pest Roads, to whom
the decision was rendered, that 1t aftectS
all persons whose salaries are based on
postal receipts and fluctuate according
to the business of their Office. Gen
orally this includes the postmaster him
self, the assistant postmaster and super
visors. 1t does nct affect. however, all
employees whose salaries are on a hat
basis, receiving the same amount each
year.
McCarl held that, no matter how
great the decrease in postal receipts was,
the automatic reduction in compensa-
ton must operate, even though 1t re-
suits in a salary cut OF more than 813
per cent provided in the economy act.
The decision held, however, that the
economy act must apply to force these
fluctuating salaries to take cut CT at
least 8la per cent.
Reduction Requirements.
IF the automatic reduction" con-
tinued McCarl, brings their compensa-
ton below 9123 per cent Of the average
compensation for 1881 they must take
such deduction, but are not required to
take further reduction under the econ
omy act"
This means that postmasters and
ether employees in this class OF fiuctuat-
ing income must bear the full brunt OF
the decrease brought out by the de-
pressions slump in postal receipts.
Postmaster Mooney explained that in
the Washington office, pending settle
ment of the question decided today.
every cne had been given the regular
813 per cent economy act cut. The
general force has been given q compul-
sorry five-day furlough without pay this
month as part Of the "a days compul-
sorry legislative furlough of the econ
omy act They will find their pay on
August l. therefore, reduced by six and
one-fourth days pay because OF the
fact that the salary deductions are
based on 30 days pay, with the furlough
absences on "a working days.
Question Of Difference.
This question of the difference be-
tween the calculation On working days
and calendar month pay was further
explained by McCarl in a letter to Sen
ator Copeland of New York regarding
a specific case.
"Under the economy act" McCarl
explained, lone calendar month as
used in section 101 b of the economy
act is to be regarded for pay purposes
as 30 calendar days. The section" he
continued, "gives the option of taking
this enforced furlough without pay all
in one calendar month, such as July,
August, and etc, or in shorter periods
For the latter purpose it is provided
that only "a working days shall be re-
garded as one calendar month. This
means simply that for keeping the rec
ord when periods of less than one cal
endar month are taken. only the work.
ing days are regarded, and when "a are
taken, the furlough time has been ex-
hausted
But for the purposes Of calendar
deductions one calendar month is 80
days and the employe loses total
of 80 days pay during the fiscal year,
which is to be deducted as the rate OF
one and one-quarter days for each of
the "a working days taken or au-
thorized to be taken"
McCarl further explained today that
the economy act allows leave with pay
for rural mail carriers, postmaSters and
postal employees of post offices of the
first, second and third classes, whose
salary or allowances are based on postal
receipts, and also postmasterS of the
fourth class. This would include also
the employees who McCsrl told Repre-
sentative Mead must take the full ef-
feet of the automatic cut in pay.