“(2) For any course of education or training for which the educational or training institution involved has no customary cost of tuition, until a fair and reasonable rate of payment for tuition, fees, or other charges for such course has been determined. In any case in which one or more contracts providing a rate or rates of tuition have been executed for two successive years, the rate established by the most recent contract shall be considered to be the customary cost of tuition notwithstanding the definition of "customary cost of tuition" as hereinafter set forth. If the Administrator finds that any institution has no customary cost of tuition he shall forthwith fix and pay or cause to be paid a fair and reasonable rate of payment for tuition, fees, and other charges for the courses offered by such institution. Any educational or training institution which is dissatisfied with a determination of a rate of payment for tuition, fees, or other charges under the foregoing provisions of this paragraph shall be entitled, upon application therefor, to a review of such determination (including the determination with respect to whether there is a customary cost of tuition) by a board to be known as the "Veterans' Tuition Appeals Board" consisting of three members, appointed by the Administrator for such purpose. Such board shall be subject, in respect to appointment, hearings, appeals, and all other actions and qualifications, to the provisions of sections 5 to 11, inclusive, of the Administrative Procedure Act, approved June 11, 1946, as amended. The decision of such board with respect to all matters shall constitute the final administrative determination. In no event shall the board fix a rate of payment in excess of the maximum amount allowable under the Servicemen's Readjustment Act, as amended. The term "customary cost of tuition" as employed herein and in paragraph 5, part VIII, Veterans Regulation Numbered 1 (a), as amended, is regarded as that charge which an educational or training institution requires a non veteran enrollee similarly circumstanced to pay as and for tuition for a course, except that the institution (other than a nonprofit institution of higher learning) is not regarded as having a "customary cost of tuition" for the course or courses in question in the following eircumstances "(a) Where the majority of the enrollment of the educational and training institution in the course in question consists of veterans in training under Public Laws 16 and 346, Seventy-eighth Congress, as amended: and "(b)_One of the following conditions prevails. "1. The institution has been established subsequent to June 22, 1944. "2. The institution, although established prior to June 22. 1944, has not been in continuous operation since that date "3. The institution, although established prior to June 22, 1944, has subsequently increased its total tuition charges for the course to all students more than 25 per centum. "4. The course (or a course of substantially the same length and character) was not provided for nonveteran students by the institution prior to June 22, 1944, although the institution itself was established before June 22, 1944: Provided further, That nothing in the foregoing proviso shall be construed to affect adversely any legal rights which have accrued prior to the date of enactment of this Act, or to affect payments to educational or training institutions under contracts in effect on such date."] H. Repts.. 81-1. vol. 6- -108 ADVANCING IN GRADE, TIME IN GRADE, AND COMPENSATION CERTAIN EMPLOYEES IN THE POSTAL FIELD SERVICE WHO ARE VETERANS OF WORLD WAR II OCTOBER 14, 1949.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. WHITAKER, from the Committee on Post Office and Civil Service. submitted the following REPORT (To accompany H. R. 42851 The Committee on Post Office and Civil Service, to whom was referred the bill (H. R. 4285) to amend the act of July 31, 1946, in order retroactively to advance in grade, time in grade, and compensation certain employees in the postal field service who are veterans of World War II, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass The amendment is as follows: On page 2, following line 15, insert the following new section: SEC. 3. This Act shall not apply to employees of the Railway Mail Service. PURPOSE OF THE AMENDMENT The purpose of the amendment is to exclude employees in the railway mail service from the provisions of the bill because such employees have already received the benefits provided for in the bill, since it is the practice of the Post Office Department to adjust the pay and seniority of such employees upon their appointment following military service. STATEMENT The purpose of the bill is to increase the rates of pay of certain substitute employees in the field service of the Post Office Department. who, by reason of military service, are receiving lower rates of pay than they otherwise would have received had they been privileged to accept appointments in the postal service between May 1. 1940. and October 23, 1943 Public Law 577, Seventy-ninth Congress, approved July 31, 1946. provides that any person whose name appeared on any list of eligibles established for positions in the field service of the Post Office Department between May 1, 1940, and October 23, 1943, and who lost opportunity for probational appointment because of military service during World War II and was certified for probational appointment to such position and subsequently was given such appointment, shall, for the purpose of determining his rate of pay and his seniority rights, be deemed to have been appointed to such position as of the earliest date upon which an eligible standing lower on the same list of eligibles received a probational appointment therefrom. Some employees in the postal service who received the benefits of Public Law 577 are receiving less compensation and are in lower grades than other postal employees who have been appointed to positions in the postal service with less total civilian and military service. Under the provisions of the bill, substitute employees in the postal service who are subject to the McCormack Act but who are receiving a lower rate of pay than an employee who was lower on the register from which he is appointed will be placed in the same salary grade as such eligible standing lower on the register. All employees in the postal service entitled to the benefits of Public Law 577 receive four additional grades when they are appointed to regular positions. Substitute employees who were entitled to benefits under Public Law 577, and who are still substitutes, are receiving salaries which are four grades lower than those of regular employees of comparable or equivalent service. In the judgment of the committee, since the absence of such substitute employees on military duty in such instances lost them the opportunity for regular appointment, and they are now receiving a lower rate of pay than that to which they are entitled, the committee believe the enactment of this legislation will correct an existing inequity not apparent at the time of enactment of Public Law 577. The Post Office Department estimates that the cost of this legislation will be small because there are relatively few employees who would benefit by the enactment of the bill. The Bureau of the Budget and the Post Office Department recommend the enactment of this legislation with the amendment approved by the committee. The reports of the Bureau of the Budget dated August 12, 1949, and the Postmaster General dated August 15. 1949, are as follows: Hon. Toм MURRAY, EXECUTIVE OFFICE OF THE PRESIDENT, Chairman. House Committee on Post Office and Civil Service, Washington, D. C. MY DEAR MR. MURRAY: This will acknowledge your letter of April 20, inviting the comments of the Bureau of the Budget with respect to H. R. 4285, to amend the act of July 31, 1946, in order retroactively to advance in grade, time in grade, and compensation certain employees in the postal field service who are veterans of World War II Because of the interest of the Post Office Department and the Civil Service Commission in this matter, their views were requested and there are enclosed herewith for your information a copy of a report which the Post Office Department proposes to present to your committee, and a copy of a letter dated June 22 from the Civil Service Commission It would appear to this office that the position taken by the Post Office Department with respect to this proposal is appropriate. Accordingly, the Bureau of the Budget would recommend favorable consideration of the proposal by your committee if the bill is amended as suggested by the Post Office Department. DEAR MR. CHAIRMAN: Further reference is made to your request for a report on H. R. 4285, a bill to amend the act of July 31, 1946, in order retroactively to advance in grade, time in grade, and compensation certain employees in the postal field service who are veterans of World War II The measure provides "That subsection (a) of the first section of the Act entitled 'An Act to provide benefits for certain employees of the United States who are veterans of World War II and lost opportunity for probational civil-service appointments by reason of their service in the armed forces of the United States', approved July 31, 1946, is hereby amended by inserting before the proviso in such subsection the following: 'Provided, That the grade, time in grade, and rate of compensation of any person so appointed to a position in the postal field service shall, at the time this Act first applies to such person, be not less than the grade, time in grade, and rate of compensation of the lower eligible (whether a substitute or regular employee) receiving the highest automatic rate of compensation at such time, but such adjustment in grade, time in grade, and rate of compensation shall not affect the status of such person as a substitute or regular employee: "SEC. 2. The amendment made by this Act to such Act of July 31, 1946, shall take effect as of August 1, 1946, but shall not apply in the case of any person who has been separated from the postal service prior to the date of enactment of this Act." Public Law 577, approved July 31, 1946, it amended by the proposed bill, would have the following effects as interpreted by this Department with respect to employees of the field postal service: (1) Benefit only those employees who were on eligible lists between May 1, 1940, and October 23, 1943. and lost an opportunity for appointment because of their absence on military furloughand an eligible standing lower on the same list of eligibles received a probationary appointment; (2) deny benefits to such employees who reenlisted after June 1. 1945, in the Regular Military Establishment, or after February 1. 1945, in the Regular Naval Establishment; (3) exclude from the benefits employees in positions for which automatic grades are not provided by Public Law 134, approved July 6. 1945, as amended; (4) could benefit only those who still remain on the rolls as substitutes; and (5) that employees benefited under this measure would not again be benefited under Public Law 317, approved March 6, 1946, as amended by Public Law 35. approved April 15. 1947 when they are appointed to regular positions. Substitute employees who were eligible to benefit under Public Law 577, and who are still substitutes, are receiving a salary which is four grades below that of a regular employee of comparable or equivalent service whose salary was converted as a regular under Public Law 134, or who was promoted to regular after July 1. 1945, and benefited under Public Law 317, as amended. Since the absent employee in such instances lost an opportunity for appointment because of his absence on military furlough, and as a result is receiving a ower rate of pay than he would have otherwise, the Department will interpose no objection to the enactment of the bill As regards employees of the railway mail service, it has been the practice of the Department to adjust the pay and seniority of such employees immediately upon their appointment following their military service. Thus, when a next lower eligible is occupying a position in the railway mail-service organization, the returning veteran, who comes within the provisions of Public Law 577, is placed |