family, averaging 3. In a number of cases the pitiful significant notation was returned "no longer able to contribute to the support of others."

Another highly significant item concerned an estimated postponement of medical attention. Thirty-four report to have been forced to do this. The average amount estimated to have been postponed was $108. Thirty-nine report that their savings account had been wiped out. In addition, six report that they had been forced to go into debt. Included in the table of statistics which I would like to place in the records concerning substitutes are a number of statements setting forth other facts. The following is typical: "My meals are very irregular and insufficient", "Am I to spend my best years in poverty?", and "We have no standard left, we just exist."

A chart based on reports of the National Committee for Economy in Government, the National Association of Manufacturers, and Feldman Report to United States Treasury, divided the taxpayer's dollar as follows: Local taxes, 55 percent; State taxes, 15 percent; and Government taxes, 30 percent. These reports indicate that only about 4 percent out of the taxpayer's dollar goes to pay wages of Government employees. This strikingly reveals that if the entire Government pay roll was suspended it would have slight effect upon taxation. With respect to the Federal tax dollar, the Associated Press is authority for the following estimates: That the Treasury Department takes 38 cents; Executive Department, 28.6 cents; War Department, 11 cents; Navy Department, 8 cents; Agricultural Department, 5 cents; Department of Commerce, 1 cent; Department of Justice, 1 cent; Interior Department, 1.8 cents; District of Columbia, 1.2 cents; Legislative, State, and Labor combined, 1.2 cents; and the Post Office deficit only consumes 2 cents of the entire tax dollar.

Further evidences of the toll exacted from the employees of the Post Office Department appear in the Report of the Postmaster General, which gives the decrease in expenses of the Department in 1933 as compared to 1932 as $97,419,097. Of this $80,611,749 came from salaries and wages. The Fostmaster General makes this observation: "The principal savings were made, however, in the expenditure for personal services. In the main, these savings resulted from various provisions of the economy legislation, temporarily reducing the compensation of Federal personnel, but large sums were cut from the pay roll by reductions in the force as well of regular as of temporary and auxiliary employees. It thus appears that of approximately $80,000,000 saved during the year in the Post Office pay roll more than $58,000,000 is attributable to reductions resulting from various provisions of the economy legislation, and approximately $22,000,000 to reductions in force. The Post Office Department is the largest single employer of labor in the country, if not in the world."

* *

I have already placed in the record statements resulting from questionnaires sent substitutes and regulars. I wish to also place in the record a little further material indicating the extent to which the National Recovery Administration program has been slowed up by Government wage policies. In the city of Minneapolis a survey made in 1932 showed that 136 clerks had removed their telephones, 227 had been forced to borrow, 183 discontinued checking accounts; 59 discontinued the education of their children; 283 were forced to reduce or discontinue contributions to welfare organizations, and 138 neglected medical care. The normal postal payroll in Minneapolis was $3,317,710. It was estimated that the total cut amounted to $779,661. Economists variously estimate the turnover of the live dollar in a wage envelope to be from 11 times a year to 5 times a month. Whichever estimate is taken, a curtailment of the current of business is ridiculously out of proportion to the saving by the Government.

In another city, Columbus, Ohio, the pay roll for 1931 was approximately $2,822,836 for the entire Federal service. Estimating on the assumption that a dollar turns over 11 times in the year the city of Columbus lost $2,587,596 in the year 1932 alone.

My statement has been confined entirely to figures. The question of justice and fair dealing on the part of the Government to its own employees has not been touched upon. However, this is indisputable. The Government is setting a very bad example to private industry by its own policies. It cannot in good grace ask men in private industry to increase wage rates and shorten hours when it pursues a diametrically opposite policy.

34329-34

1 When possible.

3 Postponed.

NOTE.-Total number of dependents, 117; average, 22.

STATEMENT SUBMITTED BY W. M. COLLINS, PRESIDENT RAILWAY MAIL ASSOCIATION TO COMMITTEE ON APPROPRIATIONS, UNITED STATES SENATE, IN CONNECTION WITH H. R. 6663

Mr. Chairman; representing as I do the railway postal clerks of the great Postal Service, I appear before you in their behalf in connection with certain legislation incorporated as a rider on the independent offices appropriation bill for the fiscal year ending June 30, 1935. These various provisions affect the welfare of the employees. These provisions either suspend or modify certain basic laws governing the wages and working conditions of railway postal clerks, so that there has been a material reduction in the buying power of these employees. Congress fixes a basic annual wage, but through this temporary legislation reduces that annual wage by certain percentages, on the basis of comparative costs of living. By this emergency legislation Congress prohibits the employee from receiving the basic compensation and the law even prohibits the employee from advancing beyond the standard of 1928 regardless of the so-called "cost of living", while in the meantime his actual wage depends upon arbitrary computations and comparisons as to living costs. The term "living costs" is indefinite, and subject to various interpretations. The value of the employees' services can never be determined by the cost of commodities. Regardless of the experience and the efficiency of the employee, his standard is frozen as that of 1928 and as so-called "living costs" fluctuate downward he suffers accordingly.

The provisions of these so-called "economy laws" affect different groups of employees in different degrees. It is not alone the percentage of reduction in the base pay. There are other reductions in addition to that of the base pay and then there are rights suspended that means reduced income for the employees. During the fiscal year 1933 railway postal clerks suffered a reduction of 8% percent on salary for the first 9 months and 15 percent during the last 3 months of that year. In addition to that, this group of employees suffered a 50 percent loss of wage on account of night work and in addition to that they suffered a 33% percent loss on their travel allowances. A considerable number in this group also suffered a loss of an earned promotion which was an additional loss of $150 and that loss continues during the present year and it is now proposed to continue it during next year. Even if there were any equity in the principle of the wage cuts, there is none in the discrimination made in these laws so that one employee suffers much more heavily than others.

In the message accompanying the Budget recently submitted to Congress, the President stated:

"Among the legislative provisions appended hereto is one prohibiting automatic increases in compensation except in the Army, Navy, and Marine Corps. The personnel of these three services are engaged in a life service to their country. Some, by reason of the pay freezes have sustained reductions in compensation of more than 25 percent. They are, therefore, in a different category than those in other governmental agencies. They should, in 1935, be released from the restrictions on automatic increases in compensation."

The President is right. These promotions should be restored and there should be no discrimination in regard to these earned promotions on account of the particular branch of the Government service. The civil employees are performing a life service to the Government just as much as those in the military establishment. The majority of the civil employees must remain in the Federal service until 70 years of age before retirement, while those in the military service retire at a much earlier age. The services of each group are necessary for the maintenance of the Federal establishment and the same consideration should be given all employees in the rights to earned promotions. Reference is made in the message to those in the military service sustaining a 25 percent loss on account of freezes in salary. Investigation will disclose that many in the civil service are suffering more than 25 percent loss on account of salary freezes.

The provision incorporated in this bill by the House does not restore these automatic promotions even in the military service as requested by the President. The request was modified so as to cover what might be called administrative promotions permitting such to be made in the military service and the argument submitted in report of the House committee was to the effect that such would place the military branch upon the same basis as the civil branch as these promotions were permitted in the civil branch according to the statement of that committee. Investigation will disclose that these administrative promotions are not permitted in the civil branches and are specifically prohibited by section 7 of the Treasury and Post Office Appropriation Act of 1934. When vacancie