75TH CONGRESS 2d Session HOUSE OF REPRESENTATIVES { REPORT No. 1641 INCREASING THE EFFICIENCY OF THE COAST GUARD NOVEMBER 16, 1937.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. BLAND, from the Committee on Merchant Marine and Fisheries, submitted the following REPORT [To accompany S. 2575) The Committee on Merchant Marine and Fisheries, to whom was referred the bill (S. 2575) to increase the efficiency of the Coast Guard, having had the same under consideration, report it back to the House without amendment and recommend that the bill do pass. This bill is identical with H. R. 7486 which was reported favorably by the committee on August 10, 1937, and the report then submitted applies as well to this bill and reads as follows: This bill was recommended to the Speaker of the House of Representatives by the Acting Secretary of the Treasury by letter dated June 4, 1937, a copy of which is appended as a part of this report. Your committee is advised that the proposed legislation is in accord with the program of the President. The purpose of the bill is to increase the efficiency of the Coast Guard by establishing for commissioned officers of the Coast Guard a sound and practical system of retirement, both voluntary and involuntary. The bill affects commissioned officers only. However, it does not affect chief warrant officers who technically are commissioned officers. Hearings were held on the bill, as a result of which your committee feel that there is definite need for the establishment of such a system as is provided in the bill. Such a system will serve as a salutary stimulus to the commissioned officers of the Coast Guard to carry on the work of the service to the best of their ability. Promotions in the Coast Guard are based solely on seniority, except that there are prescribed examinations to test the physical, mental, moral, and professional fitness of officers for promotion. However, an officer who fails to pass his examinations for promotion, must, during good behavior, be retained in the Coast Guard in his present rank until retired for age or disability. As the system now operates, it would appear that an ensign is virtually assured of attaining ultimately the rank of captain, provided he lives, keeps his health, commits no offense triable by court martial, and passes his examinations. Even though he should be deficient in administrative ability, leadership, initiative, or the other essential attributes of an officer of high caliber, yet his promotion might follow. Your committee sees little incentive to best effort when the reward will come by passage of time. The bill is designed to establish a system which will selectively eliminate from promotion lists and thus from an opportunity to stand the examination, those few officers who are lacking in these qualifications, and a H. Repts., 75–3, vol. 1—————2 means of retiring officers who are not adapted to a career in the Coast Guard. It should be noted that this system is to be distinguished from any system of promotion by selection. The bill provides for a limited number of "selections out," not "selections up," thus retaining in the Coast Guard the present method of promotion by seniority. In addition to limiting the number of officers who can be adversely affected by its provisions, the bill provides liberal safeguards to those affected by granting them the right to hearings, appearance with counsel, review, reconsideration, etc. The Coast Guard is charged with some of the most responsible duties in the Government service. It saves life and property at sea and also on the inland waters in time of emergency. It protects the revenue, serves as an international ice-patrol, aids in the enforcement of navigation laws, aids the fisheries in the enforcement of treaty obligations, serves as an ocean and border water police patrol, and is called upon for various other services of an emergent character. In time of peace it serves under the Secretary of the Treasury, and in time of war under the Secretary of the Navy. It is by law a part of the Military Establishment of the United States. The Coast Guard has a personnel of approximately 10,000 individuals, of whom 489 are commissioned officers. Its duties and responsibilities have increased very considerably in recent years, and its officers constantly must meet complicated situations requiring sound judgment, great administrative ability, thorough knowledge of the sea, and comprehensive and thorough knowledge of the laws they are called upon to administer and enforce. It is inevitable that, in an organization of the kind and size of the Coast Guard there will be a few officers who are not well fitted for the work, and who in the interests of good administration, should be retired or permitted to resign with appropriate compensation in either case for services rendered. Under existing law this is not possible. Under the proposed law this problem will be met. EXPLANATION OF THE BILL Section 1 of the bill permits an officer who, in accordance with the established rules of the service is no longer eligible for promotion, to have himself placed upon the retired list if he has 10 years or more of commissioned service. If his commissioned service is less than 10 years, it is provided that he may resign with 1 year's pay, computed at the rate of pay he was receiving on the date of his resignation. Section 2 requires the Secretary of the Treasury, at the direction of the President, to assemble annually a Coast Guard personnel board to be composed of at least three commissioned officers on the active list of the Coast Guard, to select the officers, if any, whom the board determines should be retired or placed out of the line of promotion, and to make recommendations with respect thereto. The proceedings and decisions of the personnel board are to be reviewed by the Commandant of the Coast Guard and, under certain circumstances, by the Secretary of the Treasury. If the Commandant approves the recommendation of the personnel board, or, if the Secretary of the Treasury, after disapproval by the Commandant, shall concur in the decision of the board, the officer concerned is entitled, as a matter of right, to have his case reconsidered by the board, if, within 30 days after receipt by him of notice of the action taken in his case, he files with the Commandant a written protest or appears before the personnel board. All recommendations for retiring officers or placing them out of the line of promotion, if approved by the Commandant or by the Secretary of the Treasury, as the case may be, are to be laid before the President by the Secretary with his recommendation. Section 2 provides also that the President may, in any calendar year, pursuant to any recommendation so laid before him (a) place out of the line of promotion such number of lieutenant commanders as will not exceed 2 percent of the officers in that grade as of January 1 of the particular year, with the qualification, however, that this percentage restriction is not intended to limit the number of lieutenant commanders who may be placed out of the line of promotion for failing to qualify in their examinations for promotion; (b) retire such number of officers who have 30 or more years of service as will not exceed 5 percent of the number of officers falling within that classification on January 1 of the particular year; and (c) retire any officer who has been placed out of the line of promotion and who has 10 years or more of commissioned service. Section 3 provides that the annual pay of any officer who is retired under the provisions of the bill is to be 21⁄2 percent of his active duty pay, multiplied by the number of years of his service, with the proviso that such retired pay is not to exceed 75 percent of his active duty pay. Years of service, for the purpose of determining retirement pay, are to be computed in the same manner as is now or may hereafter be provided by law for the computation of years of service for voluntary retirement. Section 4 limits the number of officers who may be retired involuntarily in any one year to 1 percent of the total number of commissioned officers. In addition, this section limits to 2 percent of the total number of commissioned officers, the number of officers who under the bill are permitted to resign or retire voluntarily. Section 5 declares that the provisions of the bill are supplementary to, but are not to be construed to limit or supersede existing laws relating to retirement, examination for promotion, and promotion of Coast Guard officers. Section 6 specifically excepts chief warrant officers from the operation of the bill. It follows, of course, that the number of chief warrant officers in the Coast Guard will not be considered in computing the various percentage restrictions of the bill. These officers, who technically are commissioned officers, normally are not eligible for further promotion as they have reached the highest grade to which they may aspire. Consequently, the present problem with respect to other commissioned grades is nonexistent in the chief warrant grade. For the reasons stated above, your committee is of the opinion that the purposes of the bill possess considerable merit, will accomplish a need which is necessary to insure an organization of the highest caliber and of the finest type and efficiency, and is deserving of the favorable consideration of the House. Accordingly, the enactment of the bill is strongly recommended. There follows the letter of the Acting Secretary of the Treasury referred to elsewhere in this report: TREASURY Department, The SPEAKER OF THE HOUSE OF REPRESENTATIVES. SIR: There is transmitted herewith a proposed bill to increase the efficiency of the Coast Guard, by providing a stimulus to the officers thereof to carry on the work of the Coast Guard to the best of their ability, and a method of retiring, voluntarily and involuntarily, a limited number of officers who show themselves to be unqualified to perform the myriad duties of the Service. The bill affects commissioned officers only. It does not, however, affect chief warrant officers, who technically are commissioned officers. Section 1 of the bill permits an officer who, in accordance with the established rules of the Service, heretofore has been or hereafter may be placed out of the line of promotion, to have himself placed upon the retired list if he has 10 years or more of commissioned service. If his commissioned service is less than 10 years, it is provided that he may resign with 1 year's pay, computed at the rate of pay he was receiving on the date of his resignation. Section 2 requires the Secretary of the Treasury, at the direction of the President, to assemble annually a Coast Guard Personnel Board to be composed of at least three commissioned officers on the active list of the Coast Guard, to select the officers, if any, whom the Board determines should be retired or placed out of the line of promotion and to make recommendations with respect thereto. The proceedings and decisions of the Personnel Board are to be reviewed by the Commandant of the Coast Guard, and under certain circumstances, by the Secretary of the Treasury. If the Commandant approves the recommendation of the Personnel Board, or, if the Secretary of the Treasury, after disapproval by the Commandant, shall concur in the decision of the Board, the officer concerned is entitled, as a matter of right, to have his case reconsidered by the Board, if, within 30 days after receipt by him of notice of the action taken in his case, he files with the Commandant a written protest or appears before the Personnel Board. All recommendations for retiring officers or placing them out of the line of promotion, if approved by the Commandant or by the Secretary of the Treasury, as the case may be, are to be laid before the President by the latter with his recommendation. Section 2 provides also that the President may, in any calendar year, pursuant to any recommendation so laid before him, (a) place out of the line of promotion such number of lieutenant commanders as will not exceed 2 percent of the officers in that grade as of January 1, of the particular year, with the qualification, however, that this percentage restriction is not intended to limit the number of lieutenant commanders who may be placed out of the line of promotion for failing to qualify in their examinations for promotion; (b) retire such number of officers who have 30 or more years of service as will not exceed 5 percent of the number of officers falling within that classification on January 1 of the particular year; and (c) retire any officer who has been placed out of the line of promotion and who has 10 years or more of commissioned service. Section 3 provides that the annual pay of any officer who is retired under the provisions of the bill is to be 2% percent of his active-duty pay, multiplied by the number of years of his service, with the proviso that such retired pay is not to exceed 75 percent of his active-duty pay. Years of service, for the purpose of determining retirement pay, are to be computed in the same manner as is now or may hereafter be provided by law for the computation of years of service for voluntary retirement. Section 4 limits the number of officers who may be retired involuntarily in any 1 year to 1 percent of the total number of commissioned officers. In addition, this section limits to 2 percent of the total number of commissioned officers, the number of officers who under the bill are permitted to resign or retire voluntarily. Section 5 declares that the provisions of the bill are supplementary to, but are not to be construed to limit or supersede, existing laws relating to retirement, examination for promotion, and promotion of Coast Guard officers. Section 6 specifically excepts chief warrant officers from the operation of the bill. It would be appreciated if you would lay this bill before the House of Representatives. A similar bill has been transmitted to the Senate. This proposed legislation is in accord with the program of the President. STEPHEN B. GIBBONS, Acting Secretary of the Treasury. A BILL To increase the efficiency of the Coast Guard Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That any commissioned officer of the Coast Guard, who, in accordance with regulations prescribed by the Secretary of the Treasury, heretofore has been or hereafter may be placed out of the line of promotion, may, at his own request (a) if his commissioned service is 10 years or more, be placed upon the retired list with retired pay as prescribed by section 3 hereof, or (b) if his commissioned service is less than 10 years, resign from the Coast Guard with 1 year's pay computed at the rate of pay he was receiving on the date of his resignation. SEC. 2. The Secretary of the Treasury, at the direction of the President, shall assemble annually a Coast Guard Personnel Board, to be composed of not less than three commissioned officers on the active list of the Coast Guard, to select the officers, if any, whom the Board determines should be retired or placed out of the line of promotion, and to make recommendations with respect thereto. The proceedings and decisions of the Personnel Board shall be transmitted to the Commandant of the Coast Guard for review. If the Commandant shall approve the recommendation of the Personnel Board, the officer concerned shall be notified in writing of the action taken in his case, and he shall be entitled to have his case reconsidered by such Board, if, within thirty days after he receives notice as aforesaid, he files with the Commandant a written protest of the action taken, or appears, either in person or by counsel, before the Personnel Board: Provided, That no case shall be twice reconsidered by the Personnel Board. If the Commandant shall disapprove the recommendation of the Personnel Board, he shall transmit the same with his recommendation to the Secretary of the Treasury for final action. If the Secretary of the Treasury shall concur in the decision of the Commandant, the case shall be terminated, and the officer concerned shall retain his status in the Coast Guard to the same extent as if his case had not been considered. If the Secretary of the Treasury shall disapprove the recommendation of the Commandant and approve that of the Board, the officer concerned shall be notified as aforesaid, and shall be entitled to have his case reconsidered by the Personnel Board, subject to the same conditions as hereinbefore provided. At the expiration of thirty days after receipt by any officer concerned of notice of the action taken in his case, in the event no protest is filed or appearance made as provided in this section, the recommendation of the Personnel Board, as approved by the Commandant or by the Secretary of the Treasury, as the case may be, shall be laid before the President by the latter with his recommendation. In the event of the reconsideration of the case of any officer, |