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TABLE 8.-Salaries of officers of certain industrial corporations, reported to Securitics and Exchange Commission, 1946-47

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1 Includes such officials as presidents, board chairmen, vice presidents, comptrollers, treasurers, assistant treasurers, secretaries, assistant secretaries, and corporate directors.

Usually paid to a president, chairman of the board, or president and chairman of the board.
Usually paid to a secretary, assistant secretary, or corporate director.

In the Dominion of Canada

The Governor General of Canada receives a basic salary of £50,000. Cabinet ministers are also members of Parliament. They receive a total of $16,000, of which $10,000 is the salary of a cabinet minister, $1,000 is for compensation as a member of Parliament, and $2,000 is a tax-free living allowance. Some of them, such as the Minister of Public Works, receive an additional $2,000 automobile allowance.

Deputy ministers-positions which correspond to a permanent under secretary-receive from $10,000 to $17,500, depending upon the department concerned.

For example, the Deputy Minister of Labour and the Deputy Minister of Veterans' Affairs each receives $12,000; the Deputy Minister of Justice, the Deputy Minister of Agriculture, the Deputy Minister of National Revenue, and the Under Secretary of State for External Affairs each receives $15,000. The Deputy Minister of Finance receives $17,500. The President of the National Research Council also is paid $17,500.

In State governments

Of the 48 governors, 26 receive a basic salary of $10,000 or more. Eight receive $12,000; one (Pennsylvania), $18,000; two (Massachusetts and New Jersey), $20,000; and two (California and New York), $25,000.

Eight State attorneys general receive $10,000 or more. The highest such salary (New York) is $20,000.

Four heads of State departments of agriculture receive $10,000 or more. The highest such salary (New York) is $15,000.

Seven heads of State departments of health receive $10,000 or more. The highest such salary (New York) is $15,000.

The following list furnishes additional information on the salaries of State officials:

TABLE 9.--Salaries of State officials receiving compensation in excess of $10,000

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In municipal governments

In 12 cities over 500,000 population the mayors receive salaries ranging between $10,000 and $25,000 (median salary, $16,500).

In 10 cities over 500,000 population the superintendents of schools receive salaries ranging between $10,000 and $25,000 (median salary, $12,175).

In New York City the mayor receives $25,000; superintendent of schools, $25,000; Comptroller, $20,000; 4 district attorneys, $20,000 each; and chief engineer, Board of Transportation, $20,000.

In Chicago 11 positions pay $10,000 or more, up to a top rate of $18,000.

In Detroit 17 positions pay $10,000 or more, up to a top rate of $15,000.

In international organizations

The following list shows the amounts of tax-free salaries and other compensation paid to top executives of international organizations.

TABLE 10.—Salaries of top officials in international organizations

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2 Allowances include representation, i. e., hospitality, housing, education, and children's allowances, but not such reimbursable allowances as travel, subsistence and removal costs upon appointment, transfer, or termination; official travel and home-leave travel. The Secretary-General of the United Nations, in addition to the $20,000 representation allowance, is provided with a furnished residence, the repairs and maintenance of which, excluding provision of household staff. are borne by the Organization.

CORRECTIONS OF THE POSTAL RATE REVISION AND FEDERAL EMPLOYEES SALARY ACT OF 1948 (PUBLIC LAW 900, 80TH CONG.) SO AS TO INCLUDE CERTAIN EMPLOYEES OF THE DISTRICT OF COLUMBIA AND OF THE FOREIGN SERVICE OF THE UNITED STATES

The Postal Rate Revision and Federal Employees Salary Act of 1948 granted an increase of $330 per annum to employees receiving not in excess of $10,000 per annum and paid under the Classification Act of 1923 and other statutory schedules, and $450 per annum to employees of the postal field service. Due to the urgency with which this bill had to be acted upon, it was not made applicable to two groups of employees who had been included within the pay increase provisions of similar prior laws, namely the Federal Employees Pay Acts of 1945 and 1946.

These two groups are (a) per annum employees of the municipal government of the District of Columbia whose compensation is fixed under the Classification Act of 1923, as amended, and certain other statutes, and (b) officers and employees of the Foreign Service of the United States receiving not in excess of $10,000 a year.

On June 19, 1948 (Congressional Record, daily ed., pp. 9252-9253), when the bill which became Public Law 900 was being considered in

the Senate, there was a question whether the revenues of the District of Columbia would permit payment to the employees of the District government of the increases that were being considered for Federal employees.

In the belief that it might be possible to put a revenue-producing measure on the agenda and act on it before the Eightieth Congress adjourned, an amendment was offered and adopted to delay payment of the general increase to municipal employees until a bill providing adequate revenue became effective. However, such a revenue bill was

not enacted.

In the meantime, the amendment offered from the floor remained in the bill and became section 304 of Public Law 900, reading as follows:

SEC. 304. The provisions of this Act granting an increase in compensation to employees of the United States and of the District of Columbia shall not apply to any employee in or under the municipal government of the District of Columbia prior to the time that legislation providing adequate revenues to meet the obligation in the District of Columbia is enacted by the Congress and becomes effective.

The result is that although Classification Act and certain other per annum employees of the municipal government of the District of Columbia received the benefits of the 1945 and 1946 general pay increase acts, they were denied, because of the hurried legislative situation, the benefits of Public Law 900.

When asked at the hearings about that situation, Mr. James E. Webb, Director of the Bureau of the Budget, called attention to the fact that at the time the President signed Public Law 900, on July 3, 1948, he did so with the statement that he thought the omission of employees of the District of Columbia government was unfair. Mr. Webb said that he was certain that the President would feel that this unfairness should be corrected at the earliest possible time (hearings, p. 20).

Subsection (a) of section 8 of the proposed bill corrects this situation. As of July 3, 1948, the date of approval of Public Law 900, it repeals section 304. Persons who did not receive the $330 increase solely because of section 304 and who on the date of enactment of the proposed bill are employees of the District of Columbia, will receive increased compensation retroactively (usually to July 11, 1948) as though section 304 had never been enacted, and, of course, will receive future payments at the increased rate.

The Bureau of the Budget estimates that 7,598 District of Columbia employees are affected and that the cost of the correction on an annual basis is $2,507,340.

In the case of the Foreign Service of the United States, the provision of section 301 of Public Law 900 involved here is that which increases the pay of officers and employees

whose rate of compensation is increased by section Federal Employees Pay Act of 1946.

of the

Section 4 of the Federal Employees Pay Act of 1946 applied, with certain exceptions, to "rates of basic compensation specifically provided by statute" and not increased by any other provision of that act. Upon its effective date, July 1, 1946, it applied, therefore, to the then current pay schedules of the Foreign Service.

S. Repts., 81-1, vol. 1- -4

However, the Foreign Service Act of August 13, 1946, established brand new schedules for the Foreign Service, effective November 13, 1946. The result was that the identity of the increases under section 4 of the Federal Employees Pay Act of 1946 was lost. Hence, as indicated by the Comptroller General in decision B-77798, July 8, 1948, it could not be held that after November 13, 1946, officers and employees of the Foreign Service belonged to the group "whose rate of compensation is increased by section 4 of the Federal Employees Pay Act of 1946." Consequently, they did not benefit under Public Law 900. The language of the act permits no other construction.

Subsection (b) of section 8 of the proposed bill would correct this situation. It would apply to officers and employees of the Foreign Service receiving not in excess of $10,000 per annum, who on the date of enactment of the bill are Foreign Service officers or Foreign Service staff officers or employees. It would provide that the rates of basic compensation of such officers and employees be increased by $330 per annum, effective (as was Public Law 900) as of the first day of the first pay period which began after June 30, 1948.

The Bureau of the Budget estimates that this correction would benefit 6,000 officers and employees of the Foreign Service and would cost $1,980,000 on an annual basis.

ESTIMATE OF COST

The total estimated cost of the proposed bill, on an annual basis, is $6,209,813.

This estimate is gross cost and does not take into account the fact that in top salary brackets a considerable portion of salary is withheld by the Government for the payment of income taxes. (See hearings, p. 79.)

The total cost indicated is composed of the following items:

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Revision of top salary brackets:

Increase in compensation of the President, the Vice President, and the
Speaker of the House; and payment of expense allowances
Increase in compensation of other top-bracket positions previously
listed...

Total..

Correction of Public Law 900, 80th Cong.:

District of Columbia government.
Foreign Service of the United States..

Total..

Total cost of bill...

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Not included in these figures is the small cost incident to the President's exercise of authority, under section 6 of the bill, when the facts warrant, to increase the salary of the chairman or other head of a board or commission from $17,500 to $20,000. Depending on the number of cases in which the President finds that such action is justified, the cost of section 6 would range between $2,500 and $52,500 a year.

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