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words stricken from existing law, and the new matter in italics; and the bill (S. 543) as reported to the House with committee amendments showing in brackets the words stricken from existing law, and the new matter in italics:

PRESENT LAW (U. S. C., TITLE 39, Sec. 106), Section 10 OF TITLE I OF THE ACT

OF FEBRUARY 28, 1925 SEC. 10. That the pay of carriers in the village delivery service, under such rules and regulations as the Postmaster General may prescribe, shall be from $1,150 to $1,350 per annum. The pay of substitute letter carriers in the village delivery service shall be at the rate of 50 cents per hour.

S. 543 A8 PASSED BY THE SENATE SEC. 10. That the pay of carriers in the village delivery service, under such rules and regulations as the Postmaster General may prescribe, shall be from [$1,150 to $1,350] $1,250 to $1,550 per annum. The pay of substitute letter carriers in the village delivery service shall be at the rate of [50] 60 cents per hour. This act shall take effect on the date of its approval.

S. 543 As REPORTED TO THE HOUSE Sec. 10. [That the pay of carriers in the village delivery service, under such rules and regulations as the Postmaster General may prescribe, shall be from $1,150 to $1,350 per annum.] Carriers in the village delivery service shall be graded with salaries for each grade, as follows: First grade, $1,250; second grade, $1,350, third grade, $1,450. That in the readjustment of salaries for letter carriers in the village delivery service to conform to the grades herein provided, village letter carriers who are now receiving $1,150 per annum shall be placed in grade one, those who are now receiving $1,250 per annum shall be placed in grade two, and those who are now receiving $1,350 per annum shall be placed in grade three. In determining the aggregate period of service upon which promotions are to be based, all time served as letter carrier in the village delivery service is to be included: Provided, That hereafter substitute letter carriers in the village delivery service when appointed regular carriers shall have credit for actual time served on a basis of one year for each three hundred and six days of eight hours served as substitute, and appointed to the grade to which such carrier would have progressed had his original appointment as substitute been to grade one: Provided further, That letter carriers in the village delivery service shall be promoted successively after one year's satisfactory service in each grade to the next higher grade until they reach the third grade. All promotions shall be made at the beginning of the quarter following one year's satisfactory service in the grade. The pay of substitute letter carriers in the village delivery service shall be at the rate of [50] 60 cents per hour.

This act shall take effect on the date of its approval.

Under existing law village-delivery service may be established in towns and villages having post offices of the second or third class and in communities adjacent to cities having city delivery. The department's policy is to establish such service in places which do not meet the requirements of City Delivery Service but where the gross postal receipts amount to at least $5,000 per annum and the population within the improved area to be served by the village carrier is at least 1,500. There are certain other requirements as to streets, sidewalks, and mail receptacles.

The rate of salary of these carriers as fixed by existing law is $1,150 to $1,350 per annum, while substitute carriers in such village-delivery service are paid 50 cents per hour. The committee believes that these salaries should be increased and that the carriers should be graded into three grades, as follows: Grade 1, $1,250 per annum; grade 2, $1,350 per annum; and grade 3, $1,450 per annum (this maximum salary being $100 less than that proposed by the Senate). It also recommends that the pay of substitutes be increased to 60 cents per hour.

At this time there are 954 regular carriers in the village-delivery service, with salaries as follows: 117 receiving $1,150; 109 receiving $1,250; and 728 receiving $1,350. In addition there are 8 village carriers who work four hours a day. The Post Office Department estimates that the cost of the bill as amended by this committee will be approximately $151,400.

This committee also suggests that substitute letter carriers in the village-delivery service, when appointed regular carriers, shall be given credit for actual time served on a basis of one year for each 306 days of eight hours served as substitute, and be appointed to the grade to which such carrier would have progressed had his original appointment as substitute been to grade 1. It is further suggested that letter carriers in the village-delivery service be promoted successively after one year's satisfactory service in each grade to the next higher grade until reaching the maximum grade, and that in computing a year's service in any of the grades established by this act, credit shall be given for the time served by the village carrier at his present salary and which would have applied toward promotion under existing regulations.

The Postmaster General's report on a similar House bill (H. R. 10123) reads as follows:

MARCH 11, 1930. Hon. A. D. SANDERS, Chairman Committee on the Post Office and Post Roads,

House of Representatives. MY DEAR MR. SANDERS: Replying to your letter of February 27, 1930, transmitting copy of H. R. 10123, introduced by Mr. McMillan, to increase the compensation of carriers in the village-delivery service, you are informed that passage of the bill would result in an estimated additional cost of $133,250 per annum. In the present state of post office finances I am opposed to the enactment of this legislation. Very truly yours,

WALTER F. BROWN. O

TO FIX MORE EQUITABLY THE RESPONSIBILITY OF

POSTMASTERS

FEBRUARY 11, 1931.-Referred to the House Calendar and ordered to be printed

Mr. KENDALL of Pennsylvania, from the Committee on the Post

Office and Post Roads, submitted the following

REPORT

(To accompany H. R. 16256]

The Committee on the Post Office and Post Roads, having had under consideration the bill (H. R. 16256) to fix more equitably the responsibility of postmasters, reports the same back to the House with the recommendation that the bill be passed.

Hearings were held on this bill, and it is the opinion of your committee that these postmasters should be relieved of liability for any loss of public funds of the United States due to the negligence or dishonesty of any subordinate or subordinates, unless in the opinion of the Postmaster General, such postmaster by the exercise of due diligence could have prevented such loss.

Section 34 of title 39 of the United States Code reads as follows: Every postmaster, before entering upon the duties of his office, shall give bond, with good and approved security, and in such penalty as the Postmaster General shall deem sufficient, conditioned for the faithful discharge of all duties and trusts imposed on him either by law or the rules and regulations of the department. On the death, resignation, or removal of a postmaster, his bond shall be delivered to the Bureau of Accounts in the Post Office Department. The bond of any married woman who may be appointed postmaster shall be binding upon her and her sureties, and she shall be liable for misconduct in office as if she were sole.

The law further provides that assistant postmasters and cashiers at first, second, and third class post offices, and when deemed necessary by the Postmaster General for the better protection of the interests of the Government any other employees in such offices, shall, before entering upon the duties of their office, give bond to the United States with good and approved security, and in such penalty as the Postmaster General shall prescribe, conditioned for the faithful discharge of all duties and trusts imposed upon them either by law or the rules and regulations of the Post Office Department.

The postmaster is held responsible for the accounting for and refunding of losses of postal funds caused by subordinates in excess of the amount covered by their personal bond. The guilty employee is personally held for the loss first, and, if his bond is not sufficient, then the postmaster, under his bond, is held for the balance although he is not personally to blame nor has handled any of the funds involved in the loss. The postmaster fixes the amount of the bonds supplied by subordinates in accordance with a scale issued by the department, but the employees in their work come in contact with mail valued at many times the amount of their bonds, and it is not possible, where there are many employees, for the postmaster to keep personal supervision over them.

The passage of this bill will not tend to increase the premiums on bonds of postal employees, as the act of August 5, 1909, provided that "until otherwise provided by law no bond shall be accepted from any surety or bonding company for any officer or employee of the United States which shall cost more than 35 per cent in excess of the rate of premium charged for a like bond during the calendar year 1908.

A report from the Postmaster General, approving this measure, is printed below.

OFFICE OF THE POSTMASTER GENERAL,

Washington, D. C., January 21, 1981. Hon. A. D. SANDERS, Chairman Committee on the Post Office and Post Roads,

House of Representatives. MY DEAR MR. SANDERS: This will acknowledge the receipt of your letter of January 17, transmitting a copy of H. R. 16256, a bill to fix more equitably the responsibility of postmasters, with the request for the views of this department on the subject.

This question has been thoroughly considered and is believed to be in the interests of the service and I am, therefore, of the opinion that the provisions of this bill should be enacted into law. Very truly yours,

WALTER F. BROWN.

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