Now, I do not know why that is not workable. Of course, it would probably cause inconvenience to civil-service employees who enjoy favored positions and favored consideration, they probably would have to wait on advancement and transfer and other emoluments until the other States caught up to their quota, but I cannot believe that the degree of intelligence with which I am sure the members of the Civil Service Commission are possessed is not sufficient to make this thing work even under this amendment. Now, it was pointed out to me by a gentleman yesterday that some of our territorial possessions have a quota of four or five or six civilservice employees and that to date there is not a single civil-service employee. Now, if it is in the scheme of things that some of those small territorial possessions are never to have a civil-service status, why, so far as I am concerned, I would be perfectly agreeable to cutting out the Territories. We will not hold back the operation of this thing for the Virgin Islands and some of the other territories of the United States who only have three, four, five, or six employees. It seems to me it would be a perfectly simply matter to handle that by an amendment, excluding the Territories and Territorial possessions from the operation of this bill and then let it apply only to the States in the United States. That briefly, gentlemen, is all that I want to say about it, unless some member of the committee would like to ask me something. The CHAIRMAN. Are there any questions, Senator? Senator GEORGE. I have no questions. Mr. NICHOLS. I certainly thank the committee. The CHAIRMAN. We are much obliged to you, Congressman. STATEMENT OF MRS. HARRIS T. BALDWIN, FIRST VICE PRESIDENT, NATIONAL LEAGUE OF WOMEN VOTERS Mrs. BALDWIN. Passage by this Congress of the Ramspeck bill, H. R. 960, without the crippling amendments added in the House, would make possible within the current year the fulfillment of party pledges. The platforms of the Democratic and Republican Parties in 1936 advocated extension and improvement of the Federal civilservice system. The Democratic platform was especially explicit pledging the party to "the immediate extension of the merit system through the classified civil service." During the almost 4 years since these party platforms were adopted some progress has been made, but much remains to be done. Since 1936 postmasters in the first-, second-, and third-class offices have become a part of the classified civil service through the enactment of the Ramspeck bill. These postmasters continue to be subject to political selection through the requirement that they remain Presidential appointees subject to Senate confirmation which was added to the bill in the Senate. Through successive Executive orders the President has attempted on a number of occasions to carry out the Democratic platform pledge. Notable among these attempts was the Executive order of July 1936 requiring the appointment of the first person on the eligible list as postmaster, later succeeded by the enactment of the law placing postmasters in the classified service; the Executive order of June 1938, extended the civil service to the extent that lay within the power of the President. As important as extension of the civil service at that time was revision of the rules of the Civil Service Commission and the establishment of the Personnel Council. The Personnel Council is now jeopardized by failure of Congress to appropriate funds for its work. The Committee on Administrative Management appointed by the President suggested numerous changes in the organization of the civil-service system. These proposals were greeted by most supporters of the merit system as being sound. The Congress failed to pass such legislation, but a portion of it is contained in the bill under present consideration. During these past 4 years the Congress has at various times created new agencies and exempted all or a portion of the employees from both the Civil Service Act and the Classification Act. Other agencies created have been made subject to the civil-service system. Extension of the classified civil service to all but the top policydetermining positions in the Federal service is possible of attainment under the Ramspeck bill, provided the apportionment amendment added during House consideration of the bill is eliminated The gradual application of the classification system to the field service is a practical solution to the problem of inequalities in pay that now exist The extreme difficulties of administration that would result from the apportionment provision of the pending bill have been forcefully presented to the Senate Committee on Civil Service by the Civil Service Commission. It is obvious that such a requirement is contrary to the interest of efficiency in the public service, is based on a patronage concept, and is bound to result in many injustices to employees. It would successfully sabotage extension of the civil-service system provided in the rest of the bill. There has been considerable discussion in the Congress of the best method of giving employees in the positions affected by the bill an opportunity to qualify for civil-service status. The League of Women Voters accepts noncompetitive or qualifying examinations as an admirable solution of a difficult problem. Noncompetitive examinations are standard civil-service examinations, and those who cannot pass them are weeded out. Continuity of service is not disrupted as it would be if open competition with applicants from outside the service were required. Noncompetitive examinations are a great improvement over the customary practice of the past-blanketing in of all employees without further test of their qualifications. We are of the opinion that noncompetitive examinations are fair to all parties concerned and that they protect the interest of the public in qualified Government employees. The League of Women Voters is convinced that the cost of putting such a measure into effect is warranted by the improved efficiency that will result from having the vast majority of Government personnel under the civil-service system. We urge prompt action by the Senate Civil Service Committee on this measure. We urge that the apportionment amendment be deleted, and the bill reported to the Senate in the same form in which it was reported to the House. STATEMENT OF H. ELIOT KAPLAN-Resumed Mr. KAPLAN. We would like to see the Ramspeck bill provide that those who take the noncompetitive examinations and pass have the right to a classified status, that those who take the examinations and fail need not necessarily be dropped from the service but should be retained only in an unclassified status. That would give them no permanent status and would permit the matter to remain, so far as they are concerned, in status quo. That would make it consistent with the practice followed under the Executive orders of the President at present. That is, all should be required to take noncompetitive examinations, but those who pass will then have a classified civil-service status, and those who fail will remain but without a classified status. But the National Civil Service Reform League will support the Ramspeck bill regardless of whether such amendment is made or not. The CHAIRMAN. Thank you. It is now 12 o'clock and as we have some important witnesses who want to be heard next Wednesday we will recess until then. (Whereupon, at 12 o'clock noon, a recess was taken until Wednesday, April 17, 1940, at 10 a. m.) EXTENDING CLASSIFIED CIVIL SERVICE WEDNESDAY, APRIL 17, 1940 UNITED STATES SENATE, COMMITTEE ON CIVIL SERVICE, The committee met, pursuant to recess, at 10 a. m. in room 249 Senate Office Building, Senator William J. Bulow (chairman) presiding. Present: Senators Bulow (chairman), Byrd and Mead. Also present: Senator H. H. Schwartz; Congresswoman Edith Nourse Rogers; Kenneth C. Vipond, assistant chief examiner, Civil Service Commission; Col. F. C. Harrington, Commissioner of Work Projects; E. W. Clark, Acting Commissioner of Public Works; J. J. Madigan, executive officer, Public Works Administration; Edgar F. Puryear, acting special assistant to personnel, Public Works Administration; A. J. Sarre, Personnel Director, Federal Works Agency; and E. Claude Babcock, national president, Federal Personnel Association. The CHAIRMAN. The meeting will come to order. We will hear Senator Schwartz first. STATEMENT OF HON. H. H. SCHWARTZ, SENATOR FROM THE STATE OF WYOMING Senator SCHWARTZ. Mr. Chairman, I am primarily interested in the Tennessee Valley Authority's civil-service set-up and merit system and it is that of which I wish to speak this morning, and out of abundant caution that I might overlook something I might have in mind I have taken the liberty of putting it on paper and I will read it in order to get it in the record. Last year a joint congressional committee appointed by Congress spent several months investigating the affairs of the Tennessee Valley Authority. It was my good fortune to be a member of that committee. One of the subjects thoroughly considered by the committee was the civil-service merit system maintained by the T. V. A. as required by the act of Congress creating the Authority, and the related provisions of the act of Congress directing the Authority to pay its employees not less than the rate of wages prevailing in the region where employed. From that study, and based in most part on matters now to be mentioned, it is my conviction that the present T. V. A. system should be retained, and that the present bill should specifically exempt the T. V. A. from its provisions. Preliminarily, some provisions of the T. V. A. Act should be stated. The law gives the T. V. A. corporate character. Three directors of the Corporation are provided for, and it is declared "The board shall exercise all the powers of the corporation" and "All members of the board shall be persons who profess a belief in the feasibility and wisdom" of the provisions of the act. The T. V. A. Act further provides United States Code of Laws, sec. 831b, 702): The board shall without regard to the provisions of civil-service laws applicable to officers and employees of the United States, appoint such managers, assistant managers, officers, employees, attorneys, and agents as are necessary for the transaction of its business, fix their compensation, define their duties, require bonds of such of them as the board may designate, and provide a system of organization to fix responsibility and promote efficiency. Any appointee of the board may be removed in the discretion of the board. No regular officer or employee of the corporation shall receive a salary in excess of that received by the members of the board. The same section of the law further provides: In the event any dispute arises as to what are the prevailing rates of wages, the question shall be referred to the Secretary of Labor for determination, and his decision shall be final. In the determination of such prevailing rate or rates, due regard shall be given to those rates, which have been secured through collective agreement by representatives of employers and employ ees There is other provision for work done under contract, and the act provides Where such work as is described in the two preceding paragraphs is done directly by the corporation the prevailing rate of wages shall be paid in the same manner as though such work had been let by contract. And, further Insofar as applicable, the benefits of chapter 15 of title 5 shall extend to persons given employment under the provisions of this chapter. (May 18, 1933, ch. 32, 48 Stat. 59). As the committee knows, chapter 15 of title 5-Code of the Laws of the United States-provides for compensation for injuries to employees of the United States. The T. V. A. Act further declares in chapter 32, section 6 (48 Stat. 63): In the appointment of officials and the selection of employees for said corporation, and in the promotion of any such employees or officials, no political test or qualification shall be permitted or given consideration, but all such appointments and promotions shall be given and made on the basis of merit and efficiency. Any member of said board who is found by the President of the United States to be guilty of a violation of this section shall be removed from office by the President of the United States, and any appointee of said board who is found by the board to be guilty of a violation of this section shall be removed from office by said board. Laying aside for the moment the question whether the President should be authorized to cover the employee personnel of the T. V. A. into the general classified civil service of the United States, the committee will observe that such transfer would run counter to many present provisions of the T. V. A. law adopted by Congress after long and careful consideration. The T. V. A. merit system as required by the act has been in operation since the law went into effect. Different persons and organizations have spoken in refernce thereto. Dr. Arthur E. Morgan, at page 3083 of the record of the investigation made by the congressional committee says: We have worked closely with the Civil Service Commission. We have tried to get the essence of the value of the civil-service set-up without some of the handicaps of the regimentation that it has produced, and I believe that given |