Evening star., 1939-06-30
Merger Personnel
Problems Await
Civil Service Study
Program Transferring
100000 AnoIyzed for
Budget Director
By ]. A. FOX.

arising from the lntermlngung OF
civil service and non-civil service
units under the reorganization pro-
gram effective at midnight tonight
will await to some extent the re-
shaping of the agencies affected by
the changes, the Civil Service Com
mission told Director of the Budget
Harold D. Smith, in letter made
public today.
The communication was studied
by affected Government depart
ments as John M. Carmody, head
of the new Federal Works Agency,
and Jesse H. Jones, director of the
combined Federal lending agencies,
prepared to take over their new
duties. Mr.. Carmody was confirmed
by the Senate late yesterday. Mr..
Jones previously had been confirmed
President Roosevelt has yet to name
the head of the Federal Security
Agency the third group combined
under the reorganization, and told
reporters today that no nomination
is to be announced Immediately.
The letter, which was dated June
is. analyzed the reorganization pro-
gram transferring approximately
100000 workers. and was sent in
circular form throughout the Gov
ernment as matter of informa-
ton to administra tive officers
In substance, the letter argued
against disturbing the status of any
of the approximately 35,400 civil
service positions which fall under
the terms of the order. and pro-
posed that certain non-civil service
-. places get competitive status. In
this connection, it was pointed out
that unless specific exemption is
provided by executive order, the
three $4,000 assistant administra-
tors for the new Federal Security,
Federal Works and Federal Loan
agencies must come from civil serv-
ice lists, along with all other per-
Sonnel in the immediate Offices of
the administrators for the three
new groups.
Reorganization plans Zone and
two contain no provision excepting
these positions from competition. it
was emphasized, and several opin-
ions from Attorneys General have
held that in such cases, civil service
b. regulations apply.
LOOphOle Is Cited.
The communication, which was in
response to a letter from Director
Smith asking comment on the re-
organization plans, also dealt eX-
tensively with the promotion ban
= in the Reorganization Act, which
was lifted in part yesterday by
ruling by Controller General Fred
H. Brown, declaring it would dis
criminate against persons now in
service; at the same time. it was
added, there is loophole by which
the law could be evaded
Since section 10 90 dealing with
promotions operates to prohibit in
creases in the compensation of the
personnel of any agency involved in
a reorganization during the fiscal
year the commission said. 1T will
operate to place the employees of
such agencies at a decided diSad-
vantage as compared with persons
who are being appointed to the Gov
ernment service for the first time.
Under section 10 (b) an employe
of any agency involved in a re-
organization may not receive an
increase in compensation during the
fiscal year if assigned to the duties
of a position of higher grade. If
the position is filled by original
appointment from outside the serv-
ice, however. the new appointee
may receive the grade and salary
normally attached to the position
Conceivably, therefore, employees
with long experience in some agen-
cies may be denied increases in
compensation to which they would
otherwise be entitled, while new
appOinteeS are performing the
same duties at higher grades and
salaries
The commission desires to point
out. also, that section 10 ID, of the
Reorganization Act is confined in
It's applicability to the transfer OF
personnel The section, therefore,
prohibits changes in classification
or compensation of employees who
are transferred pursuant to a re-
organization plan. Nothing appears
in the Reorganizat ton Act, however,
which would prevent an employe
whose change in status is restricted
by section 10 tb) from reSigning
and being reinstated in the success
sor agency at higher grade and
salary"
The commission said also that the
Controller General would be asked
If requests for reallocation of posi-
tons not acted on before July
could be granted after the new year
starts
Transfer Laws Discussed.
At the outset of its analysis, the
commission discussed the section
of the Reorganization Act which
provides that all laws relating to
any transferred agency or function
shall continue to be in force unless
1napplicable in the new setup.
"As general matter, therefore" +"
1t said, 1T seems clear that if any
agency or function which is trans
ferred retains its identity in the
establishment to which it is trans
ferred, all laws governing such
agency or function, including those
relating to the applicability of the
Civil Service Act and the Classifi-
cation Act of 1923, will remain in
full force and effect.
In certain cases, however, the
reorganization plan specifically di-
rects that particular agency shall
be abolished and that its powers,
duties and functions shall be trans
ferred to some other agency which
is specifically named. In such a
case, the only possible solution
seems to be to say that in view of
the loss of identity of the agency
abolished, the laws formerly relat-
ing to it are now inapplicable, at
least insofar as the laws relating
to the applicability of the Civil
Service Act and the Classification
Act of 1923 are concerned, and that
onnointmentS of DerSonnel tn nor