the past 18 months. For a number of years the Commission has received annually an average of about 26,000 reports of new injuries to employees in the Federal service. During the past year the Commission received nearly 163,000 reports of injury from the Civil Works Administration alone, most of them within a period of 6 months. In addition to these cases more than 10,000 reports of injury have been received to October 31, 1934 from the Civilian Conservation Corps and the reports received from other departments and establishments increased from 24,731 in the fiscal year 1933 to 29,561 in the fiscal year 1934. The increase in the volume of work arising out of injuries to employees in the regular Federal service has been more pronounced since the beginning of the present fiscal year and in this connection I invite attention to the tabulation on page 3 of the statement filed with the committee.

Since the permanent administrative organization of the Commission was equipped to handle only the normal volume of work, some of the difficulties encountered in handling this increase are clearly obvious. In addition to expanding the administrative staff by the employment of additional clerical and technical personnel, numerous problems arose in connection with the application of the compensation law to Civil Works employment. The conditions and limitations under which the benefits of the Compensation Act of September 7, 1916, were extended to this employment were such that from an administrative standpoint the effect was the same as the enactment of an entirely new compensation law. New interpretations of the law were necessary, as well as changes in procedure.

I feel, however, that the questions in which you are more particularly interested will be developed in the course of this hearing and I assure you that the Commission would be glad to furnish any information you may desire. The Secretary of the Commission is also its budget officer and he will explain such details in respect to the estimate as you may request.

JUSTIFICATION FOR 1936 ESTIMATES

The following prepared statement is presented for the hearing: The estimates of appropriations for the United States Employees' Compensation Commission may be divided into two classifications, namely, administrative and nonadministrative. Estimates of appropriations for administrative purposes provide funds to cover the cost of administering the three workmen's compensation laws under the jurisdiction of the Commission. These laws are: (1) The act of September 7, 1916 (U. S. C. title 5, secs. 751-795), providing compensation for civil employees of the United States who suffer injuries while in the performance of their duties, (2) the act of March 4, 1927 (U. Š. C. Supp. VII, title 33, secs. 901-950), providing compensation for employees in private enterprise who suffer occupational injuries while in maritime employment upon the navigable waters of the United States, and (3) the act of May 17, 1928 (45 Stat. 600), providing compensation for employees in private enterprise in the District of Columbia who suffer occupational injuries in the service of their employer.

The estimate for nonadministrative purposes provides funds for payment of benefits authorized by the compensation law applicable to civil employees of the United States. None of the benefits authorized by the two compensation laws that apply to private employments are paid from Federal appropriations but are paid by the employer direct or through authorized insurance carriers.

The estimates of appropriations for the fiscal year 1936 propose to make available from the special funds set up on the books of the Treasury pursuant to the acts of February 15, 1934 (45 Stat., p. 352), and June 19, 1934 (48 Stat., p. 1057), additional funds for administrative expenses and the payment of compensation

in connection with the administration of the benefits provided in the respective acts for employees of the Civil Works Administration and enrollees in the Ĉivilian Conservation Corps. The estimated expenditures in connection with the payment of compensation benefits for these emergency employments represent approximately 38 percent of the total estimate of expenditures for the fiscal year 1936.

The regular work of the Commission has greatly increased, thus making it necessary to provide additional funds for administrative purposes and for the payment of compensation benefits. This is due to the increase in the number of claims filed under the compensation act applicable to Federal employees and also in the number arising under the Longshoremen's and Harbor Workers' Compensation Act. The latter, however, affect only administrative costs since compensation benefits are not paid from Federal appropriations. The increase in the number of cases reported under the District of Columbia Workmen's Compensation law has not been appreciable, and except for the amount necessary to cover the restoration of the legislative reduction in salaries, no increase has been provided for the administration of this law during the fiscal year 1936. The following tabulation shows the number of injuries reported under each of these laws for the fiscal years 1930 to 1934, inclusive:

New injuries reported under the Federal Employees' Compensation Act during the first 4 months of the fiscal year 1935 show a further increase over the corresponding period in the 5 preceding years as indicated in the following tabulation:

appropriation, supplemented by funds transferred from the appropriation for government of the District of Columbia, covers all administrative expenses of Commission in connection with the administration of the three acts above refered to. The fund transferred from the District of Columbia is for the adastration of the compensation law applicable to private employment in the Distret. The appropriation "Salaries and expenses" does not cover any expense not to the adjustment of claims arising out of the Civil Works Administration or on account of injuries sustained by employees of the Civil Works Administration or enrollees in the Civilian Conservation Corps.

Due to the increase in the volume of work to which reference has already been made, it is necessary to provide increased funds for administrative purposes. The estimate of appropriation for salaries and expenses for the fiscal year 1936 provides for an increase of $102,490 over the amount carried in the regular appropriation for the fiscal year 1935 but is a net increase of only $89,420 over the estinated expenditures for that fiscal year. Approximately 22 percent of the net increase, or $19,925, is due to the omission of the legislative reduction in salaries applicable during the fiscal year 1935, thus leaving the net sum of $69,492 available for increased operating expenses. Details of the increases are analyzed by objects of expenditure in the paragraphs which follow.

01. Salaries, departmental. The estimate for salaries in the departmental service for the fiscal year 1936 provides for an increase of 26 employees. The additional positions for which provision is made are: 1 assistant secretary, CAF-10; 6 compensation claim examiners, CAF-6; 1 investigator, CAF-6; 4 medical claim examiners, CAF-5; 2 correspondence clerks, CAF-4; 3 assistant clerks, CAF-3; 6 junior clerk-stenographers, CAF-2; 3 underclerk-typists, CAF-1. All of these positions are considered necessary in order to enable the Commission to properly discharge its responsibilities and to make it possible to adjust with reasonable promptness claims filed under these compensation laws. The duties assigned to the office of the executive secretary have expanded to such an extent that it is absolutely necessary to provide an assistant secretary. The increase in the number of claims makes it necessary to increase the staff of examiners in the administrative divisions handling compensation and medical claims. The remaining positions are necessary for the same reasons.

01. Salaries, field. The estimate for salaries for field personnel for the fiscal year 1936 provides for an increase of three junior clerks, CAF-2. The field staff is engaged almost exclusively in the administration of the Longshoremen's and Harbor Workers' Compensation Act and was established solely for that purpose. Reference has already been made to the increase in the volume of work under that act. The number of cases reported under that act during the fiscal year 1934 showed an increase of more than 50 percent over the number reported during the preceding fiscal year. The increase in work will influence to a greater extent administrative costs other than salaries, such. as medical examinations, traveling expenses, and stenographic reporting service. It is necessary to have sufficient personnel assigned to this work to permit ready contact with all ports of the United States at which there is any commercial maritime employment, as hearings must be held in connection with claims of injured workmen in the compensation districts in which the injury occurred. In view of this, the field force is assigned to 12 district offices located in the larger port cities.

0150. Medical examinations.—This expense is exclusively in connection with the administration of the two compensation laws applicable to employment in private enterprise. It represents the cost of medical examinations ordered by Deputy Commissioners in cases in which an impartial medical examination is deemed necessary by the Deputy Commissioner, to enable him to fairly adjudicate the claim of an injured employee. The amount covered in the estimate under this classification does not include the cost of medical examinations of Federal employees which is paid from the compensation fund. The number of medical examinations is necessarily controlled to a very large extent by the number of claims and particularly the number of disputed claims. The estimate for this item for the fiscal year 1936 provides for an increase of 25 percent over the amount allocated for the same purpose for the fiscal year 1935. If a further increase should occur in the number of injuries reported under this law the amount allocated for the current year and that provided in the estimate will probably prove inadequate to cover this expense. The services of United States medical officers are used for these examinations as far as practicable, but since the services of such officers are not available at all places where examinations must be made, the use of private physicians is necessary. No payment, is made by the Commission for medical examinations by United States medical officers. 02. Supplies and materials.-This item includes miscellaneous office supplies and materials, and the cost of subscriptions to technical publications relating directly to the work of the Commission which are considered necessary for administrative purposes. The amount provided in the estimate for the fiscal year 1936 is the same as that allocated for the fiscal year 1935. The largest item of expense under this classification is for the purchase of file jackets for new cases reported annually, and the necessary indexes to properly record and identify these cases. It is estimated that less than $500 will be required for subscriptions to technical publications, the most expensive of which are publications furnishing financial reports. These are necessary to enable the Commission to properly

pass upon the applications of employers for the privilege of operating as selfinsurers and in connection with the authorization of insurance companies to write insurance.

05. Communication service.-The amount provided in the estimate for the fiscal year 1936 is slightly less than was expended during the fiscal year 1934, and the same as the amount allocated for the fiscal year 1935. The largest expense included under this classification is for telephone service for the office of the Commission in Washington and the district offices in the field. The estimate for this service is based on authorized rates in effect at this time. Other items included under this classification are telegraph services and registration fees on notices and orders which are required by law to be sent by registered mail. 06. Travel expense. The estimate for travel expense for the personnel of the Commission for the fiscal year 1936 is substantially the same as the amount expended during the fiscal year 1934, and is sufficient to permit approximately 1,300 days travel, most of which will necessarily be in connection with the administration of the Longshoremen's and Harbor Workers' Compensation Act. It is necessary to make investigations and conduct hearings at all ports at which there may be any employment within the scope of this law, and the hearings must be conducted personally by the deputy commissioners of this Commission. Travel is also necessary in connection with the field investigation of claims arising under the Federal Employees' Compensation Act. Such investigations are made by deputy commissioners and other field personnel in connection with travel incident to the administration of the Longshoremen's Act insofar as this is practicable and economical. Investigations are also made from the office of the Commission in Washington when necessary or advantageous. The Commission Las found that the investigation of claims by a personal representative is not only necessary in many cases to ascertain facts and to properly protect the interest of e United States, but is sound economy since such investigations are usually advantageous to the United States. Since sufficient funds are not available during the fiscal year 1935 to permit extensive travel for this purpose, the number of investigations will necessarily be reduced, although it is expected that some investigations can be made without material added costs by investigators assigned to similar work in connection with claims of employees of the Civil Works Administration.

08. Stenographic reporting service.-This item, like medical examinations, is an pense relating exclusively to the administration of the Longshoremen's and Harbor Workers' Compensation Act and the District of Columbia Workmen's Compensation Act, both of which require that hearings held before deputy comssioners in cases arising under these laws be stenographically reported. The umber of hearings held in the cities in which the district offices are located is not arge enough to warrant the Commission in employing a full-time court reporter each office, and it has been found more economical and satisfactory to have this service performed under contract. It so happens that three of the district offices have an office employee capable of reporting these hearings. The services of these employees are used for that purpose. The number of hearings cannot be trolled by administrative action, as a hearing must be granted upon the applicaof any interested party to a claim. The estimate for the fiscal year 1936 vides for an increase of approximately 15 percent over the amount allocated this service during the fiscal year 1935. If the increase in the number of ies reported during the past fiscal year continues, it appears quite evident at it will become necessary to increase the amount estimated for this expense. 11. Rents.-The amount provided for rents is the actual rent paid under existleases for office quarters in the field and for the rental of statistical machines in the office of the Commission in Washington. During the current fiscal the district offices located at Philadelphia, Norfolk, Savannah, Galveston, San Francisco occupy rented space. The Commission has been informally. add that the new Federal buildings at Norfolk and San Francisco will probably templeted in time for occupancy during the present fiscal year, and provision for rental of space for office quarters in these cities has been omitted from the catate for the fiscal year 1936. The amount required for rents has, therefore, beer reduced $700.

12 Repairs-13. Miscellaneous expenses.-A total of $400 has been included in the estimate to cover the cost of repairs to equipment and $310 for misceles expenses. The latter includes the cost of towel service, ice, drayage, and ther small miscellaneous expenses.

30 Equipment. The estimate for the fiscal year 1936 provides the same Amount for this item as allotted for the same purpose during the fiscal year 935. The largest single item of expense under this classification is for filing

equipment required for new cases reported to the Commission annually. These cases are permanent records and must be preserved. As far as practicable, use is made of the cheapest type of filing equipment for the storage of inactive files and the better grade of filing equipment is used only for records that must be referred to frequently. Funds in excess of the amount expended for this purpose during 1934 must be provided because of the material increase in the cost of office equipment, particularly file cases.

The estimate of appropriation for printing and binding for the fiscal year 1936 is an increase of $1,000 over the amount appropriated for the current fiscal year. Three hundred dollars is included in the appropriation for the District of Columbia and transferred for expenditure by the Commission to cover the cost of printing in connection with the administration of the District of Columbia workmen's compensation law.

The appropriation is intended to cover all printing and binding requirements of the Commission in the administration of three compensation laws. The largest item of expense under this classification is for printing claim and report forms necessary in connection with the administration of the Federal employees' compensation law. Additional quantities of these forms will be required during the next fiscal year in order to meet the needs of the increased employment in the Federal service. It is also understood that there will be an increase in the charges made for printing by the Public Printer.

Appropriation, Employees' Compensation Fund

The funds provided through this appropriation are limited exclusively to the payment of benefits authorized by the compensation law applicable to Federal employees. These benefits include compensation payable to disabled employees and to the dependents of those who die as a result of injuries, medical and hos pital care, and transportation to secure the same, burial expenses, embalming and transportation of remains. Because certain of these benefits are payable for an indefinite term a cumulative increase in expenditures from the employees compensation fund may be anticipated for a number of years extending into the future, or until such time as the number of new cases of permanent disability and death is equaled by cases terminated through the death of the beneficiary. Ex penditures from this fund are also influenced by changes in the number of civi employees in the Federal service. A material increase in the number of suel employees such as has occurred during the present year will necessarily result in at increase in expenditures from the compensation fund.