A similar report on H. R. 8885, an identical bill, was submitted to the Bureau of the Budget which advised that there would be no objection to its submission to the Committee. HARRY H. WOODRING, Secretary of War. FEDERAL WORKS AGENCY, United States Senate. DEAR SENATOR BAILEY: Receipt is acknowledged of your letter of March 14 to the Administrator, Federal Works Agency, transmitting a copy of S. 3571 with request that the committee be furnished with such suggestions touching its merits and the propriety of its passage as may be deemed appropriate. This bill would authorize the State of Pennsylvania to construct, maintain, and operate a free highway bridge across the Monongahela River at a point between the boroughs of Elizabeth and West Elizabeth, Allegheny County, Pa. Favorable action on the bill is recommended. This report has been referred to the Bureau of the Budget and that Bureau has advised that there would be no objection to its submission to the committee. ALAN JOHNSTONE, General Counsel. Sincerely yours, O Mr. HILL, from the Committee on Military Affairs, submitted the following REPORT [To accompany S. 3266] The Committee on Military Affairs, to whom was referred the bill (S. 3266) to provide pensions, compensation, retirement pay, and hospital benefits to certain Reserve officers of the Army of the United States, having considered the same, report favorably thereon, with the recommendation that it do pass, amended as follows: Amend the title so as to read: A bill to provide pensions, compensation, retirement pay, and hospital benefits for certain Air Corps Reserve officers who were disabled while on active duty with the Regular Army. The proposed legislation is predicated on the fifth provision of section 5, Public, No. 18 (76 Cong., 1st sess.), approved April 3, 1939, which reads: That all officers, warrant officers, and enlisted men of the Army of the United States, other than officers and enlisted men of the Regular Army, if called or ordered into the active military service by the Federal Government for extended military service in excess of thirty days, and who suffer disability or death in line of duty from disease or injury while so employed shall be deemed to have been in the active military service during such period and shall be in all respects entitled to receive the same pensions, compensation, retirement pay, and hospital benefits as are now or may herefter be provided by law or regulation for officers and enlisted men of corresponding grades and length of service of the Regular Army. The measure is designed to extend the benefits of the foregoing provision of law to approximately 23 former Air Corps Reserve officers who were called or ordered into the active military service with the Regular Army by the Federal Government for extended military service in excess of 30 days on or after July 1, 1928, and who suffered disability in line of duty from injury while so employed. The law cited (supra) provides for retirement of Air Corps Reserve officers on extended active duty in excess of 30 days who may become disabled in line of duty since April 3, 1939, date of enactment, or in the future. Therefore, it is the opinion of your committee that like provisions covering retirement benefits should be enacted for those unfortunate former Air Corps Reserve officers who were disabled while in the Federal service prior to the enactment of Public, No. 18, and who were placed on active duty July 1, 1928, or subsequently. S. 3266 is not retroactive as the last proviso thereof precludes payments of retired pay prior to enactment. The benefits involved include retirement pay and hospital benefits as are now or may hereafter be provided by law or regulation for officers of corresponding grades and length of service in the Regular Army. The 23 former officers of the Air Corps Reserve who may benefit by this measure were combat officers on duty with the Air Corps of the Regular Army and were performing Air Corps missions when disabled, and the cost as estimated by the War Department will be about $26,775. The War Department report follows: Hon. MORRIS SHEPPARD, Chairman, Committee on Military Affairs, WAR DEPARTMENT, Washington, April 18, 1940. United States Senate. DEAR SENATOR SHEPPARD: This is in response to your letter of February 7, 1940, requesting a report on S. 3266, a bill to provide pensions, compensation, retirement pay and hospital benefits to certain Reserve officers of the Army of the United States. The proposed legislation is designed to extend the benefits authorized in section 5 of the act approved April 3, 1939 (Public, No. 18, 76th Cong.), as amended, which reads in part as follows: 66* * * Provided further, That all officers, warrant officers, and enlisted men of the Army of the United States, other than the officers and enlisted men of the Regular Army, if called or ordered into the active military service by the Federal Government for extended military service in excess of thirty days, and who suffer disability or death in line of duty from disease or injury while so employed shall be deemed to have been in the active military service during such period and shall be in all respects entitled to receive the same pensions, compensation, retirement pay, and hospital benefits as are now or may hereafter be provided by law or regulation for officers and enlisted men of corresponding grades and length of service of the Regular Army." This section was amended July 25, 1939 (Public, No. 213, 76th Cong.) to eliminate Reserve officers on duty with the Civilian Conservation Corps from its benefit. S. 3266 would extend the benefits authorized in the act of April 3, 1939, retroactively to certain Reserve officers of the Air Corps who were on active military service with the Air Corps of the Regular Army for extended military service, in excess of 30 days, on or subsequent to July 1, 1928, who suffered disability in line of duty from injury while so employed. In section 2 of the bill the duties, powers, and functions incident to the administration and payment of the benefits therein provided are vested in the Veterans' Administration, the War Department only being charged, in the administration of the retirement provisions, with the determination as to whether disability exists and was incurred in line of duty in accordance with the standards, provided for Regular Army personnel. The War Department would be unable to give definite figures as to the number of beneficiaries affected by the bill. Attention is invited to the two lists of Reserve officers killed and permanently injured between the dates of July 1, 1928, and July 1, 1939, sent to your committee under date of February 26, 1940, in accordance with your request of July 22, 1939. On list two, which gives the names of 218 Reserve officers permanently injured while on active duty in excess of 30 days during the period July 1, 1928, to July 1, 1939, there are 23 Air Corps Reserve officers who were on duty with the Air Corps and who would apparently come under the provisions of this bill. The present extent of the injury of those permanently disabled cannot be determined without observation and examination at an Army hospital. Furthermore, some of those who have been injured, between the dates specified in the bill, who apparently recovered fully without incapacity and who, therefore, were not listed, may have developed residuals which are disabling. The exact number who would benefit under the provisions of this bill could only be obtained by a medical survey including observation in hospital in each case. It is estimated that the cost to the Government involved in retirement pay to the 23 officers on the list referred to would be approximately $26,775 per annum. It is noted that by extending these benefits retroactively to July 1, 1928, to Reserve officers of the Air Corps only, the bill discriminates against the Reserve officers of other branches who were on extended active duty (other than in the Civilian Conservation Corps) during the period stated in the bill, and also against a considerable number of Air Corps and other Reserve officers on extended active duty prior to July 1, 1928. It is also desired to point out that administration of the provisions of retroactive legislation of this type is difficult. As the Veterans' Administration is primarily involved under the provisions of section 2 of S. 3266, it is suggested that the views of that agency be obtained. The Bureau of the Budget advises that there is no objection to the submission of this report, as the enactment of the proposed legislation would not be in accord with the program of the President. Sincerely yours, The Veterans' Administration's report follows: HARRY H. WOODRING, Secretary of War. VETERANS' ADMINISTRATION, Hon. MORRIS SHEPPARD, Chairman, Committee on Military Affairs, United States Senate, Washington, D. C. MY DEAR SENATOR SHEPPARD: This is with further reference to your letter of February 12, 1940, requesting a report on S. 3266 (76th Cong.), a bill to provide pensions, compensation, retirement pay, and hospital benefits to certain Reserve officers of the Army of the United States, which provides as follows: "That all Reserve officers of the Air Corps of the Army of the United States, who were called or ordered into the active military service with the Air Corps, Regular Army, by the Federal Government for extended military service in excess of thirty days on or subsequent to July 1, 1928, and who suffered disability in line of duty from injury while so employed shall be deemed to have been in the active military service during such period and shall be in all respects entitled to receive the same pensions, compensation, retirement pay, and hospital benefits as are now or may hereafter be provided by law or regulation for officers of corresponding grades and length of service of the Regular Army. "SEC. 2. That the duties, powers, and functions incident to the administration and payment of the benefits herein provided are hereby vested in the Veterans' Administration: Provided: That in the administration of the retirement provisions provided herein, the determination whether disability exists and whether such disability was incurred in line of duty shall be made by the Secretary of War, or by someone designated by him in the War Department, in the manner, and in accordance with the standards, provided by law or regulations for Regular Army personnel: And provided further, That no bounty, back pay, pension, or allowance shall be held to have accrued prior to the passage of this Act.' The bill would liberalize, as to Reserve Officers of the Air Corps of the Army, the granting of benefits authorized by the last proviso of section 5, Public, No. 18 (76th Cong.), as amended, which reads as follows: "That all officers, warrant officers, and enlisted men of the Army of the United States, other than the officers and enlisted men of the Regular Ariny, if called or ordered into the active military service by the Federal Government for extended military service in excess of thirty days, other than for service with the Civilian Conservation Corps, and who suffer disability or death in line of duty from disease or injury while so employed shall be deemed to have been in the active military service during such period and shall be in all respects entitled to receive the same pensions, compensation, retirement pay, and hospital benefits as are now or may hereafter be provided by law or regulation tor officers and enlisted men of corresponding grades and length of service of the Regular Army." The above-quoted final proviso of section 5 of the act of April 3, 1939, was amended by Public, No. 213 (76th Cong.), July 25, 1939, by adding the phrase to eliminate Reserve officers on duty with the Civilian Conservation Corps from entitlement to its benefits. The provisions of the bill are similar to the provisions of the above-quoted final proviso of section 5 of the act of April 3, 1939, as amended. However, the benefits provided by the bill are limited to Reserve officers of the Air Corps of the Army and, as to time of incurrence of disability, it is effective July 1, 1928, whereas the final proviso of section 5 of Public, No. 18, was not retroactive. The bill uses the term "injury" whereas the final proviso of section 5 of Public, No. 18, uses the terms "disease or injury." It is also noted that the bill provides disability benefits exclusively while the final proviso of section 5 of Public, No. 18, includes both disability and death. Reserve officers and enlisted men are entitled to pension under the provisions of Public, No. 159 (75th Cong.), June 23, 1937, which amended Veterans Regulation No. 1 (a); part II, paragraph I (a), by providing "That active service, including service for training purposes, performed by a Reserve officer or member of the Enlisted Reserves of the United States Army, Navy, or Marine Corps, shall be considered as active military or naval service for the purpose of granting benefits under part II hereof, and it shall not be required that such Reserve officer or enlisted man shall have been discharged from the service." There is also a provision in Public, No. 159, "This amendment shall be effective June 15, 1933, but payment of pension hereunder shall be effective from the date of receipt in the Veterans' Administration of application therefor or the date of enactment of this amendment, whichever is the later." Public, No. 179 (76th Cong.), July 15, 1939, "An act to extend the benefits of the United States Employees' Compensation Act to members of the Officers' Reserve Corps and of the Enlisted Reserve Corps of the Army who are physically injured in line of duty while performing active duty or engaged in authorized training, and for other purposes,' was enacted in compliance with a recommendation made to Congress by the Secretary of War. The benefits of the United States Employees' Compensation Act had previously been extended to the Naval Reserves by the act of February 28, 1925. There are no figures in the Veterans' Administration on which to base an estimate of the cost of the bill. It is suggested that the committee may desire a report on the bill from the War Department. For the foregoing reasons the Veterans' Administration is unable to recommend the bill to the favorable consideration of the committee. Advice has been received from the Bureau of the Budget that the proposed legislation would not be in accord with the program of the President. Very truly yours, |