after the time this Act takes effect, and during the fiscal year 1935, be reduced by the percentage of reduction, if any, applicable by law to salaries of employees of the Government generally. SEC. 3. No consolidation of rural routes shall be made otherwise than on account of the resignation, death, retirement, or dismissal on charges of carriers in the Rural Mail Delivery Service. SEC. 4. This Act shall take effect on the 1st day of the calendar month next following the month in which this Act is enacted. Passed the House of Representatives April 26, 1934. SOUTH TRIMBLE, Clerk. STATEMENT OF HON. HARLLEE BRANCH, SECOND ASSISTANT POSTMASTER GENERAL The CHAIRMAN. Mr. Branch, the committee has requested you to come before it and give your views respecting House bill 8919. You may just go ahead in your own way and make your statement. Mr. BRANCH. Senator, we appeared before the House committee on the bill; in fact, we suggested a bill to the House committee, which would change the standard route from 24 miles to 30 miles, and change the pay from $75 a mile to $60 a mile. At that time we opposed an increase in the equipment allowance beyond 4 cents a mile. Senator HAYDEN. It was then 4 cents a mile? Mr. BRANCH. That has been the rate which has prevailed under the law. As you know, in bringing about some reductions in the costs of the Post Office Department, we had to furlough some of the employees, and we had to curtail a great deal of the service, and in order to make a comparable reduction in the costs of the Rural Mail Service, we had to reduce the equipment allowance. We had no authority by law to furlough, or it was not practicable to furlough the rural-route carriers, and the only way in which we could make a comparable saving was to reduce the equipment allowance, which was done. The CHAIRMAN. What was it reduced to? Mr. BRANCH. It was reduced to 1 cent a mile for 8 months of the year and to 3 cents a mile for the 4 winter months. Senator HAYDEN. It was represented to the committee the other day that, in spite of the fact that the compensation of Federal employees generally had been increased by 5 percent first, and another increase will take place on July 1 to 5 percent, this rate, 1 cent per mile, had again been placed in effect this spring. The CHAIRMAN. In other words, while the Government was restoring, in part, the salaries of other employees, it had application to these employees. Mr. BRANCH. Recently, this spring, it became necessary to put into effect some additional furloughs for the rank and file. The CHAIRMAN. I thought those had been annulled. Mr. BRANCH. They were, but only 2 or 3 weeks ago, to begin the first of this month. The continuance of the reduction in the equipment allowance had in mind two things. One was to make a reduction in the income of the rural carriers corresponding with that of the other employees of the service who had been furloughed, and the further purpose was to balance up, as far as possible, the income or pay of the rural route carriers with that of employees in other branches of the service for the amount of work done. The Post Office Department must admit a point which has often been urged by the public generally, and by a number of Members of Congress; that is, that with the short rural routes, and with the improvement in road conditions, a great many of the rural carriers have worked comparatively short hours, and their compensation for the short time work has been out of proportion to the work performed by post office clerks and city carriers who work a greater number of hours. The CHAIRMAN. Have you made any estimate to see about the figures of equalization? Mr. BRANCH. I am going to let Mr. Donaldson go into the details for you in just a moment. Mr. Donaldson, what do our figures show as to the average number of hours worked by rural route carriers? Mr. DONALDSON. Five and a half hours. Mr. BRANCH. Five and a half hours is the average throughout the country. The CHAIRMAN. What is the average for letter carriers in cities? Mr. BRANCH. About seven; is it not, Mr. Donaldson? Mr. DONALDSON. Seven hours and 45 minutes for letter carriers and, of course, all clerks are required to work 8 hours. Senator FRAZIER. And how much do rural carriers average? Senator FRAZIER. That does not agree with the statement to us the other day. The CHAIRMAN. Not at all; it is 52 hours throughout the country? Mr. DONALDSON. Yes, sir. Senator FRAZIER. Does that include winter time, and all? Mr. DONALDSON. Yes; that is the average time considering all rural routes, long and short. The CHAIRMAN. As to the long routes, what is the average on them; that is, over a standard route? Mr. DONALDSON. The longest routes we have, of course, might require more than 52 hours to serve, while there are some of these long routes that are served in a shorter time, depending on road conditions. Some data was prepared and presented to the House committee, and in the statement appears the following: The basic salary of a carrier serving a rural route of average length which is about 36 miles, is $2,160 per annum, in addition to which he paid an equipment maintenance allowance of 4 cents per mile per day which amounts to $440 per annum, making a total compensation of $2,600, whereas on the average, the total time on duty for service on such a route is about five and a quarter hours a day. The maximum salary allowed for post-office clerks and city letter carriers, both of whom are required to work 44 hours a week, is $2,100 per annum. Senator HAYDEN. In the opinion of the Department, does the equipment allowance fully compensate the rural carrier for what it costs him to purchase and maintain his equipment? Mr. BRANCH. We had that question up before the House committee, and you probably have had the transcript of the proceedings. We submitted at that time all the evidence which we were able to gather from various large and recognized concerns using motor vehicles in a great part of the country, and my recollection is that the average was 4 cents. We can submit that information to you. The CHAIRMAN. You have those figures, and the explanation of them? Mr. DONALDSON. Yes, sir. The CHAIRMAN. I wish you would put them in the record. Mr. DONALDSON. Very well. (The matter referred to was ordered to be printed in the record, as follows:) OFFICE OF THE POSTMASTER GENERAL, Hon. JAMES M. MEAD, Chairman Committee on Post Office and Post Roads, House of Representatives. MY DEAR MR. CHAIRMAN: I am transmitting herewith a proposed draft of legislation modifying the present salary scale of carriers in the Rural Delivery Service. A careful study of this service discloses that due to improved road conditions and modern transportation methods, adequate service can be maintained with approximately 9,500 fewer employees and a reduction in cost to the Government of more than $11,000,000. As you know, the Post Office Department has adopted the policy of consolidating rural routes due to the fact that it is found that longer routes can be served in practically every section of the country. Up to this time, such consolidations have been made only in cases of normal vacancies caused by death, resignation, retirement, and removal. This is a slow process and it is obvious that the elimination of the surplus by taking up only normal vacancies, will require years to accomplish. It is felt that you should be advised that the budget requirements of the Department are such that unless the salary scale of all carriers can be adjusted so as to affect the saving of approximately $11,000,000, it will be necessary to accelerate the consolidation program and drop the surplus carriers from the rolls. For obvious reasons I am reluctant to follow this course. Taking into consideration the hours of daily service required, the salaries of rural carriers are excessive when compared with the salaries of other postal employees. The basic salary of a carrier serving a rural route of average length which is about 36 miles, is $2,160 per annum, in addition to which he is paid an equipment maintenance allowance of 4 cents per mile per day which amounts to $440 per annum, making a total compensation of $2,600, whereas on the average, the total time on duty for service on such a route is about 54 hours a day. The maximum salary allowed for post-office clerks and city letter carriers, both of whom are required to work 44 hours a week, is $2,100 per annum. The proposed draft of the bill presented herewith, takes into consideration all of the elements involved in this problem and if adopted, it is my opinion that the rural service can be maintained without excessive cost to the Government and with no injustice to the employees. If Congress approves of the revised pay scale, it is my recommendation that the provisions of the economy act authorizing the President to reduce the equipment allowance of rural carriers, be repealed thereby restoring the full allowance of 4 cents a mile for each mile traveled. The enactment of this bill will result in a saving of the same amount that could be effected by wholesale consolidation of rural routes. I trust that you will find it possible to give early consideration to this proposed legislation with a view to making it effective not later than April 1, 1934. Very truly yours, JAMES A. FARLEY, A BILL To adjust the salaries of rural letter carriers Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That that part of the Act of March 4, 1915, as amended, which is incorporated in Section 197 of Title 39 of the United States Code, is hereby amended to read as follows: "The salary of carriers in the Rural Mail Delivery Service for serving a rural route of thirty miles six days a week shall be $1,800; on routes less than thirty miles, $60 per mile per annum for each mile or major fraction thereof. Each rural carrier assigned to a route served six days in a week shall receive $20 per mile per annum for each mile or major fraction thereof said route is in excess of thirty miles, based on actual mileage, and each rural carrier assigned to a route served three days in the week shall receive $10 per mile per annum for each mile or major fraction thereof said route is in excess of thirty miles, based on actual mileage. "This Act shall take effect on April 1, 1934.' POST OFFICE DEPARTMENT, MEMORANDUM ON OPERATING COSTS OF LIGHT PASSENGER AUTOMOBILES The automotive and highway industries have grown so rapidly in the last few years that it has been difficult to keep abreast of their developments. Improvements in both automobiles and highways have resulted in higher speeds, better traveling and have somewhat reduced the cost of operation. Reliable records on privately owned and operated motor vehicles are hard to find as few owners compile them. An accurate account, or any account of an individual car throughout its life is almost unknown. However, the data presented in the attached exhibits offer a fairly satisfactory answer to the question of what it costs to operate a light passenger car of the Ford or Chevrolet type. Exhibits A and B.-These exhibits show the cost of operating light passenger cars in the Biological Survey and the Bureau of Public Roads. The operators of these cars make many stops during the day; their equipment on an average weighs approximately 150 pounds and their travel is over all classes of roads. The service performed covers a large portion of the United States. The tabulation is compiled from monthly reports kept by operators of the vehicles. The Biological Survey costs cover the year 1931 and are based on the expenses of 28 Fords and 26 Chevrolets. The costs are $0.0389 for Fords and $0.0369 for Chevrolets. Figures compiled in the Bureau of Public Roads show that 75 Chevrolets were operated during the year ended March 31, 1933, at an average cost of $0.0355 a mile and that 56 Fords were operated at a cost of $0.049 a mile. Exhibit C.-Because of their widely distributed market, many of their customers being located in rural districts that are hard to reach, the De Laval Separator Co. of New York found the use of automobiles a necessity for their salesmen and have kept accurate records of the cost of operation. The salesmen of this company cover much territory off the main highways where the roads are poor and automobile service is particularly bad. The service demanded of these cars is not unlike that rendered by rural delivery vehicles. The following is a table furnished by the General Motors Co., purporting to show the cost per mile of operation since 1926 on Chevrolet cars in the New York office territory of the De Laval service, which table apparently shows that the cost of automobile operation is gradually being reduced: The following is an elaboration of the cost of operating the 72 Chevrolets during the year 1932: Exhibit D.-This consists of a record kept by the National Building Supply Co., of New York, of the cost of operating cars used by their salesmen in soliciting and following up contracts awarded to them. It shows that the cost per mile, including even garage rent, for operating Chevrolets is $0.0318 and $0.0336 for Fords. Exhibit E.-This covers passenger cars and material-carrying cars used by the Chesapeake & Potomac Telephone Co. in rural territory contiguous to this city. The load of these cars averages close to 100 pounds. The travel is over improved highways and unimproved roads. In the three neighboring States of Maryland, Virginia, and West Virginia, the cost of operating Chevrolet automobiles by the Chesapeake & Potomac Telephone Co. is $0.037 a mile. Exhibit F.-This exhibit is a compilation made by the Iowa State College, which presents the operating cost of 1,675 automobiles, the records for which were submitted by individual Iowa owners and by various State highway departments. There are included 208 records reported from owners of privately operated cars. From information on pages 12 and 13 of this compilation, it will be noted that a Ford, model A, four-cylinder car, covering 11,000 miles a year, which is comparable to the annual travel of the average rural carrier, would cost a total of $484.23 to operate. This includes a charge of $4 a month for garage rent, interest at the rate of 6 percent on the depreciated value of the car at the beginning of the year, cost of license, depreciation, and insurance making the total cost per mile $0.044. The exhibits herewith seem to show that for vehicles of the type adequate for service on rural routes the operating cost per mile should closely approximate 4 cents. The charts show a gradual decrease in recent years in the cost of operation. It seems to be the opinion in well-informed quarters that with the material improvements in automobiles, gasoline, oil, and tires, and with rapid construction of State and county highways, the cost will continue to show a downward trend. From the information we have been able to gather on this question it is believed that the basic rate now allowed rural carriers for vehicular maintenance is adequate. |