this question indicates that by reason of legislation enacted subsequent to the promulgation of the regulation which it is proposed to amend, the provision has been rendered almost inoperable-the total annual saving thereunder amounting only to approximately $4,000-it is believed that the better course to pursue would be to provide for the abrogation of the paragraph. Aside from any consideration of the merits of the proposal, it is believed that the savings in administrative costs by the elimination of the paragraph would more than outweigh the savings effected thereby. For this reason it is suggested that the legislation which you intend to introduce be drafted somewhat along the following lines: "Be it enacted by the Senate and House of Representatives of the United States of America in Congress assemblea, That paragraph X of Executive Order Numbered 6098, dated March 31, 1933 (veterans' regulation numbered 10, 38 U. S. C., ch. 12, appendix), as amended by paragraph 1, Executive Order Numbered 6568, dated January 19, 1934 (veterans' regulation numbered 10 (c)), is hereby canceled as of the date of enactment of this Act." It is believed that this would be a more satisfactory manner to accomplish the purpose you have in mind. Very truly yours, FRANK T. HINES, Administrator. PAY OF CERTAIN COAST GUARD OFFICERS RETIRED FOR WARTIME DISABILITY JULY 6, 1937.-Committed to the Committee of the Whole House on the state of Union and ordered to be printed Mr. BLAND, from the Committee on Merchant Marine and Fisheries, submitted the following REPORT [To accompany H. R. 7611] The Committee on Merchant Marine and Fisheries, to whom was referred the bill (H. R. 7611) to adjust the pay of certain Coast Guard officers on the retired list who were retired because of physical disability originating in line of duty in time of war, having had the same under consideration, report thereon with the recommendation that the bill do pass. The purpose of the bill is to remove an injustice suffered by certain Coast Guard retired officers, which came about through no fault of these officers, because of a delay in the determination of their permanent disability and subsequent retirement, which delay has resulted in these officers being placed in a retired status with the highest temporary rank held by them in the Coast Guard during the World War but without the pay commensurate with such higher rank, whereas certain officers of the Navy, retired under like circumstances, have been previously granted both the increased rank and the pay commensurate with such rank. The circumstances surrounding this situation are as follows: There was contained in the Naval Appropriation Act, approved July 1, 1918 (40 Stat. 733), the following provision: That any officer of the Coast Guard temporarily promoted or advanced in grade or rank in accordance with the provisions of this Act who shall be retired from active service under his permanent commission while holding such temporary grade or rank, except for physical disability incurred in line of duty, [italics ours] shall be placed on the retired list with the grade or rank to which his position in the permanent Coast Guard at the date of his retirement would entitle him. Pursuant to this provision, an officer of the Coast Guard, while holding a temporary higher rank during the effective period of this law (to Sept. 3, 1921) and retired for physical disability incurred in line of duty, was placed on the retired list in the higher temporary rank held by him. So far as the Coast Guard can determine, there are two officers who would be affected by the proposed legislation; only one, however, being now in a position to be benefited. Both of these officers were incapacitated during the effective period of the act referred to above, but action on their retirement was not taken until after September 3, 1921, at which time the rights and benefits conferred by this temporary wartime legislation expired. The result was that these officers, although suffering disability which originated in line of duty while holding their higher temporary rank of lieutenant commander and which resulted in their retirement by reason of such disability, were not retired until a date subsequent to September 3, 1921, and then in the grade of their permanent commission in the Coast Guard. The same situation applied as to certain officers of the Navy and to remove the injustice as to these naval officers section 25 of the Naval Omnibus Act of March 4, 1925 (43 Stat. 1278), reading as follows, was enacted: SEC. 25. Any officer of the Regular Navy who has been retired since December 31, 1921, by reason of physical disability which originated in the line of duty at any time between April 6, 1917, and March 3, 1921, inclusive, while holding higher temporary rank, shall be advanced on the retired list to, or shall be placed on the retired list in, such higher grade or rank. Accordingly, by this provision of the Naval Omnibus Act of March 4, 1925, the situation was corrected as far as the officers of the Navy were concerned, but no action was taken to relieve the situation applying to the two Coast Guard officers. On June 21, 1930, legislation was enacted to grant to all commissioned officers serving in the Army, Navy, Marine Corps, and Coast Guard of the United States during the World War the right to a retired status or rank consisting of the highest grade held by them during the War. This act reads as follows: [46 STAT., CH. 563, SEC. 793) CHAP. 563.-An act to give war-time rank to retired officers and former officers of the Army, Navy, Marine Corps, and/or Coast Guard of the United States Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That all commissioned officers who served in the Army, Navy, Marine Corps, and/or Coast Guard of the United States during the World War, and who have been or may be hereafter retired according to law, except those retired under the provisions of section 24b of the act of June 4, 1920, shall, on the date of the approval of this act or upon retirement in the case of those now on the active list of the Army, Navy, Marine Corps, and/or Coast Guard, be advanced in rank on the retired list to the highest grade held by them during the World War: Provided, That any such officer on the active or retired list who died or may die prior to the approval of this act, or on the active list who may hereafter die before retirement, shall be advanced in rank to said higher grade as of the date of death: Provided further, That no increase of active or retired pay or allowances shall result from the provisions of this section. SEC. 2. All persons who have served honorably in the Army, Navy, Marine Corps, and/or Coast Guard of the United States during war shall, when not in the active military and/or naval service of the United States be entitled to bear the official title and upon occasions of ceremony, to wear the uniform of the highest grade held by them during their war service. Approved, June 21, 1930. It will be noted that while the officers coming within the provisions of this act were granted the increased rank on the retirement list, they were not given the pay commensurate with such rank. In addition, the act applied both to those retired by reason of disability and to those retired according to the usual provisions of law. Thus, by the terms of this act, the two Coast Guard officers previously retired by reason of disability incurred in line of duty during the World War were advanced on the retired list from their rank of lieutenant (junior grade) and lieutenant, respectively, to the rank of lieutenant commander, their highest temporary wartime rank. The bill (H. R. 7611) proposes to grant to these two Coast Guard officers the pay commensurate with their rank as was done by the act of March 4, 1925, in the case of naval officers similarly situated. Your committee consider this proposed legislation highly meritorious in that it removes an apparent injustice by according retired officers of the Coast Guard the same benefits accorded retired officers of the Navy, who were similarly situated, and in extending to them the retirement rights to which they would have been entitled except for a delay in action upon their retirement. Furthermore, as stated earlier in this report, but one of the two Coast Guard officers who would be affected is now in a position to receive financial benefit from the enactment of this legislation, the cost of administration to the Government, therefore, being negligible. One of these officers is now receiving the retired pay of a lieutenant commander because of his length of active duty to his credit, and he would, accordingly, be entitled by the terms of this bill to no additional increase in pay. The other officer is serving in a Federal civilservice office, and pursuant to section 212 of the act of June 30, 1932, has elected to receive the salary of the civil office instead of his retired pay. As a result, no payment of his present retired pay or of the proposed increase will occur until he is separated from his civil-service office. When and if that occurs, this officer would be in a position to receive an increase of $525 per annum in his retired pay, and this amount is foreseen by the Coast Guard as the only cost to be borne by the Government as a result of the legislation proposed. The Department of the Treasury is in favor of the legislation, as will be seen from the following letter of the Acting Secretary of the Treasury, dated June 11, 1937, and addressed to the chairman of the Senate Committee on Commerce in connection with S. 2336, a bill pending in the Senate which is identical with the current bill (H. R. 7611). The Department recommends the enactment of this legislation. In view of the information set out herein, your committee considers the bill (H. R. 7611) a highly meritorious measure, correcting a discrimination between officers of the Navy and officers of the Coast Guard which should not exist, and deserving of the early and favorable consideration of the House. The letter of the Acting Secretary of the Treasury previously referred to is as follows: Hon. ROYAL S. COPELAND, Chairman, Committee on Commerce, DEPARTMENT OF THE TREASURY, United States Senate. DEAR MR. CHAIRMAN: Reference is made to your letter of May 5, 1937, enclosing copy of bill S. 2336, Seventy-fifth Congress, first session, "To adjust the pay of certain Coast Guard officers on the retired list who were retired because of physical disability originating in line of duty in time of war", and requesting to be furnished with such suggestions as may be deemed proper touching upon the merits of the bill and the propriety of its passage. |