Evening star., 1933-04-17
81 POLICE, PAID
|NPR|VATEFUNDS
SUBJECTED TO CUT
81 Traffic Officers Salaries
Affected by Ruling
of McCarI.
COMPENSATION RECEIVED
FROM TRANSIT CONCERNS
Other Groups Who Were Exempt
Under Old Economy Act
Must Take Reduction.

The wages of the 81 traffic officers
OF the Police Department which are
paid by the street car companies have
been slashed Is per cent, in keeping
with the cut in pay of Government en-
ployes, under an Interpretation of the
new economy law, it developed today.
These traffic policemen, although
under the control of the District Gov
ernment, receive their entire salaries
from the car companies.
The first cut in their pay went into
effect last Saturday, when the District
placed in trust approximately $500 OF
the total of about S3,928 due the police
men for two-weeks' service
District officials were uncertain as to
just what should be done with the
money deducted from the officers
salaries and planned to ask for ruling
from Controller General McCarl.
Under the economy program the saw
ings in Government salaries revert to
the Treasury. Since the policemen's
wages, however. come exclusively from
the car companies. the question was
raised as to whether the car companies,
should receive the benefit of the cut.
1892 Procedure Reversed.
The slash in the salaries of the traffic
officers is a reversal of the procedure
of last year, when they escaped from
the 1882 economy program, when Gov
eminent employees received a wage cut
amounting to 8ls per cent.
The new economy program went into
effect April l, resulting in a cut of
IS per cent in the basic salaries of Gov
ernment employees, or an additional
cut Of 62s over what they received last
year. The new economy move was
made to apply specifically to the Dis
ment. The cut was applied last Sat-
urday to the 81 traffic policemen under
a ruling by Controller General McCarl.
He found that if the duties of an off,
Ger were performed for or under the
supervision of the Federal Government,
and II the basic rate of compensation
was fixed under any Federal law, order
or regulation, the employe was a Fed
eral officer within the meaning of the
new economy law, regardless of the
source OF the compensation.
Many groups of Government en-
ployes who were exempt from the pay
cut under the old economy act appar-
emily are due for a full IS per cent
cut under the new act, based on the
decision by Controller McCarl.
Groups to Take Cut.
Among the groups in the Treasury
Department itself who will now take
the pay cut are the bank examiners.
the national bank redemption agency.
the Federal Reserve Board, the in
solvent bank division Of the controllers
Office.
1t had previously been announced that
the salaries OF conservators in the closed
banks and their assistants were SUBJ
ject to Is per cent cut.
1t was also considered likely that
there we're other groups of employees in
otner departments whose pay had come
from outside the Government, who pre-
viously had been exempt from the nav
cut, but must now take their Is per
cent cut.
McCarl in his decision to the Secre-
tary OF the Treasury explained that un-
der definition of section l of the new
economy act of March 20. 1888, ANY
person rendering services in or under
any branch or service of the United
states government or the government
OF the District Of Columbia with the
f1ve exceptions therein are officers or
employees whose total compensation, re-
gardless OF the source from which paid,
IS subject to the is per cent reduction
In accordance with the terms of the
executive order of March %, 1888, issued
pursuant 70 section of the act"
McCarl explained that the saving of
IS per cent would not be taken away
from outside sources and impounded in
the Treasury, but would be saving of
Is per cent for the source from which
the funds came, either private or State
interests.