174 time permitted for preparation. Efficiency will be gained by proper peacetime provisions to care for the personnel. The expectancy of life for the flying officer is far less than in other occupations, the rate of attrition is high, the strain on the physical resistance from combat flying is excessive, the period of greatest flying efficiency is limited, responsibilities of air officers are heavy, promotion for a large proportion appears to have stagnated. "These observations have led me to believe the problem of the air officers is special and requires consideration by itself." After some questioning by members of the committee Mr. Furlow summarized as follows: "Then, without going into the details of my bill, which creates a separate promotion list and provides to take the Air Corps directly out of the general list and create it as a list itself, and provides for promotion within that list, you Have I summarized [addressing Colonel Lindbergh] would say that a promotion list would create greater morale, would give greater incentive to the young men in the service, and would prove for greater efficiency in the Air Service? that correctly, Colonel?" To which Colonel Lindbergh replied, "Yes." Section 4 provides the means for computing the initial date from which each officer shall compute his promotion in accordance with The purpose is to preserve the the schedule of years of service. exact order of standing which the officers of the Army now have on the present promotion list. The purpose of section 5 is to place on the retired list with advanced rank, three officers who rendered conspicuous service during Generals Liggett and Bullard will be placed on the retired the war. list with their war-time rank of lieutenant general, and General Bliss also with the rank of lieutenant general. General Bliss actually served during the war in the rank of general. This section further provides that these three officers shall receive the pay of major generals on the retired list, and it is also intended to make clear that the grade of lieutenant general is in no way revived by reason of the language contained in this act for persons other than the three named herein. Section 6 provides that General Lord, the Director of the Budget, A bill to accomwho is now on the retired list as a brigadier general, shall hereafter have the retired rank and pay of a major general. plish this purpose, H. R. 7926, has already passed the House. There was also a provision in S. 3269, which passed the House last December, to accomplish this same purpose. The report on H. R. 7926 submitted January 10, 1928, is as follows: The national defense act of June 4, 1920, created for the Army two additional services, namely, the Finance Department and the Chemical Warfare Service. For these two services the law provided chiefs with the rank of brigadier general. They constituted an exception to prior legislation which had conferred upon the chief of all services of the War Department the rank of major general. Congress recognized that an unjustifiable distinction had been drawn between these two services and the other services of the War Department by the act of February 24, 1925, which gave to the Chief of Finance and the Chief of Chemical Warfare Service the same rank as the law had previously conferred upon the other chiefs of service, namely, that of major general. When this latter act took effect the officer who was originally appointed as Chief of the Chemical Warfare Service was still serving in that capacity so that he was automatically raised to the grade of major general. With regard to the other service-the Finance Department of the United States Army-the original chief thereof had gone on the retired list June 30, 1922, so that he was not benefited by the act of February The officer who was not so benefited, namely, the first Chief of Finance 24, 1925. of the Army. The purpose of That officer is Brig. Gen. Herbert M. Lord, who retired from the Army June 30, 1922, so that he could be available to fill the office of Director of the Bureau of the Budget, which had been tendered him by the President. this bill is to confer upon Brigadier General Lord the rank and pay of a major general on the retired list of the Army. This does not affect the total of the compensation which he now receives as Director of the Bureau of the Budget for the reason that the law provides that a retired officer holding that office shall receive only the difference between the retired pay and the pay that the law stipulates. for that office. It will give him a lasting right to the retirement pay of a major general. In doing that, this bill simply adjusts an inequality in which he is the only person concerned. That inequality was recognized by the Congress when it conferred the rank of major general upon the head of that service in 1925. While the purpose of this bill is to adjust an inequality, it is fitting to state that. it carries with it the recognition of service performed for the Nation not alone by the beneficiary as Chief of Finance but as Director of the Bureau of the Budget. The service performed by General Lord in both of these capacities is so broadly known as to call for no further comment by your committee. The character of this service is fittingly set forth in the letters from Hon. Martin B. Madden, chairman of the House Appropriations Committee, and Hon. Joseph W. Byrns, ranking Democratic member of the same committee, which are appended and made a part of the report. Hon. W. FRANK JAMES, HOUSE OF REPRESENTATIVES, House of Representatives. Washington, D. C. MY DEAR MR. JAMES: I have gone over your bill (H. R. 7926) which provides. for placing General Lord on the retired list as a major general. There is no man whose services appeal to me more than those rendered by General Lord. He has been my ideal of a public servant in whose behalf the Government can afford to be generous. He has not only earned the title proposed to be conferred, but through his efficient service both in the Army and as Director of the Budget, he has placed the people of the United States underdeep obligations to him. I shall be very happy to cooperate in helping to enact the legislation proposed.. Sincerely yours, Hon. W. FRANK JAMES, MARTIN B. MADDEN. HOUSE OF REPRESENTATIVES, House of Representatives, Washington, D. C. MY DEAR MR. JAMES: I have read your bill (H. R. 7926), which proposes. to give to Gen. H. M. Lord the rank of major general on the retired list. I wish to express my very hearty approval of this measure and my desire to cooperate with you in every way that I can toward bringing about its prompt passage. It is a deserved recognition of the splendid service rendered by General Lord, not only because of valuable service rendered to the Nation while Chief of Finance of the Army during the World War but also in his present position of Director of the Budget. The present Chief of Finance of the Army enjoys the rank of major general and certainly his predecessor who has rendered such valuable service to the Nation should be given a like honor Very sincere yours. JOSEPH W. BYRNS. Since the above report was rendered, the President on January 28, 1929, in his address at the sixteenth regular meeting of the business organization of the Government, said: The results of economy which have meant so much to our own country, and indirectly to the world, could not have been successful without the Bureau of the Budget. It has been able in eight years to reduce estimates by $2,614,000,000. The ability with which that bureau has been managed is due to its director. Since I have been President it has been under General Lord. In all our meetings I have spoken of him in terms of commendation. He has continued to justify all I have ever said in his praise. I wish to take this last opportunity which I 36812-29-12 shall have during my administration publicly to express to him again my appreciation of the high character of his work and my increasing confidence in the Budget system. No friend of sound government will ever consent to see it weakened. No one who admires fidelity and character in the public service will ever fail to be grateful for the services of General Lord, who will now address you. Section 7 of this bill is the same as H. R. 10478, which has already passed the House of Representatives. The report on this bill, submitted by the Committee on Military Affairs on May 2, 1928 (No. 1466, 70th Cong., 1st sess.) is as follows: This legislation is for the purpose of retiring on three-quarters pay the licensed officers of the United States Army Transport Service upon reaching their retirement age or upon becoming physically disabled in line of duty. The bill would affect six officers during 1928 at a cost of $15,210, and would gradually increase for the 10 years up to 1938 until it reached 13 officers at a cost of $31,170 per annum, provided none of these officers died during this period of 10 years. The particular reason for this legislation is that these officers are responsible on Army transports on the high seas for the lives of many thousands of passengers yearly. They are subject to great exposure and intense strain at times, must spend nearly their entire time at sea away from their families; many of them who have served since the Spanish-American War are now approaching an age at which they must, on account of physical disabilities or the compulsory-retirement age, retire from active service, and have nothing to look forward to after such retirement but a pittance of $60 to $75 a month. This legislation if enacted will place this most deserving class of Army employees in the same status concerning retirement pay as that enjoyed by the Coast Guard and lighthouse employees, whose duties are somewhat analogous, although not involving such great responsibilities for safety of passengers as those devolving upon the licensed officers of the Army Transport Service. This retirement feature would produce a gradual flow of promotion, attract the best class of navigators and engineers, and keep them in the transport service after joining. The Army Transport Service has been continued for 30 years at a great saving to the Government in the necessary transportation of its personnel and material. This huge work and immense saving carried on with all the hazards which pertain to the deep sea has been conducted without a single loss of life. The continued excellence of this service is largely due to the performance of duty by these licensed officers of the transport service. They are in a position where the Government really owes them a debt of gratitude, and it is felt to retire such men on a pittance would be a grave injustice. The following is quoted from the hearing held on this bill April 14, 1928: "Mr. JAMES. General Pope, all the men who are on the harbor boats get their retired money out of the same fund for retirement pay as these men who do this overseas work on the Army transports, do they not? "General POPE. Yes, sir; they are all under the civil-service retirement law. "Mr. JAMES. And you think that men who go to sea like Captain Williams and Captain Scott are entitled to more consideration than men on the harbor boats and harbor tugs? "General POPE. Yes, sir. "Mr. JAMES. You think something should be done for these men to increase the amount of retirement pay they are now getting? "General POPE. Yes, sir; I certainly think so. During the last session of Congress this subject was under consideration in the form of H. R. 15974, which read as follows: "Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That hereafter those persons who have served continuously for thirty years or more on seagoing vessels of the Army Transport Service shall be retired from active service with the Government and receive retired pay as hereinafter specified: Provided, That those persons who hold licenses as navigators or engineers who have reached the age of sixty-four years and who have served twenty-five years or more on seagoing vessels, or who after five years of such service have been detached from such actual sea duty and have been assigned to other duty in the interests of the Government, who have become physically unfit for service in line of duty, shall be retired. “SEC. 2. Those persons retired as specified in section 1 of this act shall receive compensation equal to three-fourths of the average annual pay received for the past five years of service: Provided, That such retirement pay shall not include any amount on account of subsistence or other allowance." The subcommittee of the Military Affairs Committee, which had this bill under consideration, did not consider favorably the proposition of granting retirement privileges to those persons "who after five years of such service have been detached from such actual sea duty and have been assigned to other duty in the interests of the Government, who have become physically unfit for service in line of duty," and the Secretary of War in his report on that bill (H. R. 15974) stated in part as follows: "In no event should the provisions of such a bill grant the contemplated retirement privileges to Army transport personnel other than licensed officers. It is also believed unwise to grant the proposed retirement privileges to licensed officers who shall have served only a few years as such." The subcommittee, therefore, did not take favorable action on H. R. 15974. In the same letter, however, the Secretary of War stated: "It is believed that the bill would be improved were it to read as follows: "A BILL Providing retirement for persons who hold licenses as navigators or engineers who have reached the age of sixty-four years and who have served twenty-five years or more on seagoing vessels of the Army transport service "Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That hereafter licensed officers of the Army Transport Service who have reached the age of sixty-four years and who have served twenty-five years or more on Army transports, who have become physically unfit for service in line of duty, shall be retired. "SEC. 2. Those persons retired as specified in section 1 of this act shall receive compensation equal to three-fourths of the average annual pay received for the past five years of service: Provided, That such retirement pay shall not include any amount on account of subsistence or other allowance." "It is recognized that present provision for retirement of civilian employees does not give adequate compensation to licensed officers of the Army Transport Service; their employment is away from home and involves some risks; they hold positions of great responsibility; they have for many years rendered arduous and highly satisfactory service to the Government and should be properly rewarded for such service; such reward should keep open the door of hope to these old and faithful servants as well as provide places which would probably be sought by a high type of ambitious young men; the cost to the Government would be small and the money wisely expended. "There are attached hereto two statements giving certain pertinent data relating to licensed officers of the Army Transport Service, together with the approximate cost for the first five years in the event of their being granted the retirement privilege proposed in the bill." The approximate cost referred to in the last paragraph of the above letter is that which is shown in the early part of this report. H. R. 13509, Seventieth Congress, first session. [Omit the part in black brackets and insert the part printed in italic] A BILL To define the promotion-list officers of the Army and to prescribe the methods of their promotion, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the aggregate number of commissioned officers of the Regular Army and Philippine Scouts on the active list shall not exceed the number now or hereafter expressly authorized by law, and all such officers, except officers of the Medical Department, Air Corps, chaplains, and professors, shall be designated as promotion-list officers. The number of promotion-list officers in each of the grades below brigadier general shall be such as results from the operation of the promotion system prescribed in this act and shall not be otherwise limited: Provided, That the number of promotion-list colonels shall not exceed 6 per centum, the number of promotion-list lieutenant colonels shall not exceed 8 per centum, and the total number of promotion-list field officers shall not be less than 26 per centum of the number of promotion-list officers authorized by law. SEC. 2. That second lieutenants, first lieutenants, captains, majors, and lieutenant colonels shall, subject to the examination herein prescribed, be promoted to the respective next higher grade when their names appear first in their grade upon the promotion list as revised and rearranged under the provisions of this act, and when, under provisions of this act, they are credited with three, ten, fifteen, twenty, and twenty-six years of service, respectively: Provided, That in order to maintain the prescribed minimum of 26 per centum of field officers, captains credited with less than fifteen years of service shall be promoted in the order of their standing on the promotion list as revised and rearranged under the provisions of this act; the promotion of majors credited with twenty years of service shall be deferred so long as may be necessary to prevent the prescribed maximum of 8 per centum in the grade of lieutenant colonel being exceeded; and the promotion of lieutenant colonels credited with twenty-six years of service shall be deferred so long as may be necessary to prevent the prescribed maximum of 6 per centum in the grade of colonel being exceeded. Lieutenant colonels who shall have had twenty-six years of accredited service shall, if retired in accordance with law, be retired with the rank of colonel, and lieutenant colonels, who shall have had twenty-six years of accredited service shall be equally eligible under the law for appointments as brigadier generals of the line or as chiefs of branches of the Army with officers serving in the grade of colonel. Second lieutenants shall be assigned only to duties with troops of the Regular Army, or for instruction in flying. Length of service for promotion under this act shall be computed as follows: Each promotion-list officer shall be credited with all of that actual or constructive or other service which determines his position on the promotion list, and no officer shall be credited with less service than any other below him on the promotion list nor with less service than his actual active Federal commissioned service notwithstanding that such service was not counted for position on the promotion list: Provided, That each promotion-list officer whose original relative position on the promotion list shall have been changed by sentence of courtmartial, by special enactment, by discontinuity of his active service, or for any other reason, shall be credited with such length of service for promotion as the Secretary of War shall determine to be appropriate to his relative position on the promotion list and consistent with the provisions of this act. SEC. 3. That the President be, and he is hereby, authorized to prescribe a system of examination of officers below the grade of colonel and above the grade of second lieutenant to determine their fitness for promotion: Provided, however, That each officer so examined shall be tested by examinations prepared and graded in the branch of the service with which he is then serving, and that in |