scale plus 4 percent, but there are no ingrade increases. So for simplicity purposes, we have left this blank.

Mr. WILSON. Why do you say 4 percent when this scale shows 5.26 percent?

Captain MARTINEAU. In designing the table, Mr. Wilson, we took the original Hook recommendation, the original Hook structure, and increased it flat across the board by 4 percent to make it correspond with the increase that the Congress provided in 1952, to keep it parallel, see. The Hook structure was designed in 1948 to meet conditions as they existed then.

Mr. BLANDFORD. Mr. Chairman, may I raise this point on the present pay scale because this too, can be troublesome.

Take your first lieutenant with over 4 years of service, who is promoted to captain, he goes from $289 to $340. Now, that is approximately a 15-percent increase, that is ingrade promotion.

Now, take the major with over 12 years of service who is promoted to to major. There is a $44 increase which is approximately a 15-per

cent increase.

Now, take the major with 12 years of service who is promoted to lieutenant colonel, and there you come up with a $45 a month increase which is approximately a 10-percent increase on an ingrade promotion-I mean, going from one grade to the next, not an ingrade promotion, but a promotion within the same number of years of service. Now, take a lieutenant colonel with over 16 years of service and he goes to colonel and there is nearly a 20-percent increase there; in other words, the increase is almost $100 a month, which is almost 20 percent. Then take the colonel with over 26 years of service who goes to brigadier general, and again, you run into a 20-percent increase.

Now, what is the justification for that spread, 15 percent increase, to then only a 10-percent increase, 10-percent increase, 10-percent, then 15, and then two 20-percent increases on being promoted?

Captain MARTINEAU. I first point out, Mr. Blandford, this is existing law, this is present law today.

Mr. BLANDFORD. Yes. You are going to put the new scale on there. Captain MARTINEAU. But the percentages that you have been referring to are those reflected in existing law. Those variations exist today.

Mr. HARDY. Where we did wrong.

Mr. BLANDFORD. I think that may have been the effect of why, if we had kept the 5 percent in there when we had the Hook Commission report, that that differential wouldn't be nearly as great as it is today. Captain MARTINEAU. That is true.

Mr. BLANDFORD. It is the distortion Mr. Kilday was talking about the other day when they recommitted the bill.

Captain MARTINEAU. That is a factor in it, all right.

Now, here the figures we have shown in the light blue show the dollar increase that we are proposing for each of these grades. The dollar increase.

Now, I want to show here the career-incentive increases.

The red figure now [indicating] represents the additional career incentives that have been inserted at these selected points.

For instance, the second lieutenant with over 3 years of service, in other words, the one who elects to remain on duty, is going to get a

$59 increase, of which $31.20, or approximately 2 extra ingrade increases, have been inserted at that point. Normally, he would only get a $15 increase coming from one period to the other.

We have put in two additional increases at that point. Likewise, for the first lieutenant with over 3 years of service. This is one of our most critical points here today. The officers in these two grades are the ones who are leaving the service now at the end of their 3 years. We want them to stay in far greater numbers than we have been getting. So, therefore, we are going to offer them, we propose to offer them, more money and it is based upon additional ingrade increases.

I emphasize that to show that we just didn't throw in an arbitrary number of dollars.

It definitely is related to a pattern.

Similarly, the captain with over 3, and over 6, would receive 1 additional in-grade increase. And that is included in the blue figure just above [indicating], coming on up the line, because this represents the area of normal promotion, for the able, outstanding young officer who is coming along in all the services and hitting the promotion points at about these times. Not exactly these times in all cases; but this is when they are getting it in some of the services that early.

Therefore, we have put in the additional in-grade increase there to make it more attractive not only for him today, but to give him something to look forward to, next year, and the year after.

Mr. MILLER. The red figures are included in the blue?
Captain MARTINEAU. That is correct, sir.

Now, we come up here to the 18-year point, and you will see that that doubles to $31.20. That is consistent with present law. Because at the 18-year point, the in-grade increase does double, but thereafter, instead of getting it every 2 years, it comes every 4 years.

Mr. MILLER. Are we going to perpetuate that inconsistency that Mr. Blandford just pointed out?

Captain MARTINEAU. Well, sir

Mr. BLANDFORD. No; I think that is going to be remedied to some extent when you see the next chart.

Captain Martineau. Well, we will have a percentage figure on it. This next panel here will show the net pay, this is net now for the figure that we have shown before [indicating].

This figure now represents the new pay proposed in these periods. And here we have the percentage increase, the percentage increase over present pay. It is the amount by which this red figure is greater than the black figure above it.

And you will see that for this young officer down here, the one at the first point where we want him to stay on active duty, we are offering him a 25-percent, and a 22-percent increase in his present pay. He comes on along here, and reaches captain. He gets a 9.8-percent increase.

It might be interesting, Mr. Chairman, to trace through quickly a typical career, under conditions existing in the service today.

Let us take the case of a young officer coming on active duty, a young reservist, he is commissioned a second lieutenant, and let us assume that this bill has been enacted into law.

We will receive $222 per month which is the same as he is getting today. At the end of 18 months, he is promoted to first lieutenant,

if his service has been satisfactory. That is common in all the services today.

So he would get an increase from $222 to some $259. When he has got 2 years of service he gets another in-grade increase. He is now a first lieutenant, and he gets an increase under present law to some $274.

Now, he comes to the 3-year service point. That is the time when he can go home if he wants to, his obligated service is over. That is the point we want to make him a good offer, make it attractive for him to stay. So we offer him at that point a 22-percent increase over what he would get under existing law.

All right, he decides to stay. He doesn't get another increase until his sixth year of service.

Now, in most of the services today he is getting promoted to captain in about his fifth year of service. So let us assume that takes place and this first lieutenant now becomes a captain in his fifth year of service. So he will receive an increase in pay from $335 to $374.

He continues on as a captain; at 6 years of service he picks up this increase, goes to $405.

Mr. HARDY. Let me interrupt you.

Would it be impossible for him to be promoted from captain to major in that sixth year? He has gone in now, 6 years, where he is getting $405.60. Does he have to wait until he gets over his 8 years before he can be promoted to major?

Captain MARTINEAU. No.

Mr. HARDY. Then if you promote him up there, he would-he would take a loss in pay in order to be promoted?

Captain MARTINEAU. No, sir; we don't show it on this chart here. I will tell you what he gets. He would go from 405, to 421.

Mr. HARDY. Then those figures in the yellow column don't carry all the way through?

Captain MARTINEAU. No; that is where there is no change in existing law. At the 3-year point, we take up the new scales.

Mr. HARDY. Then those figures in the yellow column don't carry all the way through?

Captain MARTINEAU. No; there is where there is no change in existing law. At the present-at the 3-year point, we take up the new basis, a new formula and propose a new pay. In other words, the old Hook structure plus 4 percent.

Mr. BLANDFORD. But you are not-I hope you are not promoting people to major after 6 years of service, now?

Captain MARTINEAU. I am sure there are very few if any receiving promotions with that little service. It may be the case where some unusual specialist

Mr. KILDAY. Medicine.

Mr. BLANDFORD. Yes; doctors.

Captain MARTINEAU. The average time for officers under presentday conditions to be promoted from captain to major is about 11 to 13 years today.

So carrying this captain along here now, he gets an in-grade increase as a captain at his eighth year of service. He gets another one 2 years later in his 10th year of service, of about $15. That is the normal in-grade increase.

Now, let us say that in his 11th year of service, he gets promoted, he is selected and promoted to major. So he will then go from $436. to $483. He will pick up the pay for the 10-year period as a major. Two years later he gets an in-grade increase, about $15, that is the normal in-grade increase for that period, to some $499, another one at 14 years of service.

Now, let us say that in his 15th year of service he is selected for lieutenant colonel. So he gets an increase from $514 to $561, and picks up there as a lieutenant colonel. He will get an in-grade increase at 16 years of service and he will get a double increase at 18 years of service, because that is the point where the increment doubles under present law.

Now, officers in most of the services today

Mr. BLANDFORD. Just a moment there, Captain.

Going from 16 to 18 that double increment was based upon-a double increment is in the present law, in other words, it is still only based upon 2 years of service, but it is still a double increment at that point? Captain MARTINEAU. That is right. Eighteen years of service he picks up a double increment under existing law.

Mr. BLANDFORD. From there on out he has to complete 4 years. But that is the only place in the pay scale where on the basis of 2 years of service you get a double increment.

Captain MARTINEAU. That is right. The double increment comes at the beginning of the 4-year cycle.

Mr. BLANDFORD. That has been since 1949?

Captain MARTINEAU. Yes.

Mr. BLANDFORD. That we have had that in effect?

Captain MARTINEAU. That is right.

Mr. BLANDFORD. So this is nothing new; a continuation of what you have here is nothing new in the pay scale?

Captain MARTINEAU. Entirely consistent with existing law.

Mr. BENNETT. I thought I heard you say that the average promotion from captain to major was 11 years, and major to colonel

Captain MARTINEAU. From captain to major is about 11 years. Mr. BENNETT. On that chart, then, you are not taking an average situation. You start off here under

Captain MARTINEAU. This is not an average. hand is not an average. That is the earliest. earliest that might occur in some of the services. is a little bit over farther to the right.

But, of course, he will pick up the benefit.

The one on the left
This represents the
The average today

Mr. BENNETT. When you were pointing out that 11 years you were pointing out 11 years starting from the time when he was a second lieutenant.

Captain MARTINEAU. That is right; 10 years total service.

Mr. BENNETT. I thought you said it was 10 years to go from captain to major?

Captain MARTINEAU. No, I didn't-I meant total service. That is, total commissioned service.

Now, we had this lieutenant colonel up here at the 18-year point where he got an increase of about $30, and went from $577 to about $608. Now in most of the services today, under existing conditions the period that officers are selected and promoted to the next higher

grade if they make it, to the grade of colonel, is varying, from about 20 years of total service to about 24 years in the various services.

So let us assume that he goes up at 20 years; the 20th year of service this officer is selected for promotion to the grade of colonel. And he picks up a substantial increase from some $608 to $717. It is one of the biggest single increases he gets and that is something that officers all the way along look forward to very much. To the time when they can aspire to receiving that much increase, which is considerably greater than they received under previous promotions.

So he is promoted to colonel, 20 years of service, and at 22 years he picks up an in-grade increase. He picks up another one 4 years later at his 26th year of service.

Now, he is approaching the time where he will be considered for promotion to flag or general officer grade.

As you know, a very small percentage of the officers who are eligible can receive that promotion. I believe it is averaging now about 15 percent of the officers who are considered each year. Only about onesixth of the number up can be promoted, selected and promoted to flag grade.

Mr. MILLER. That is a permanent promotion?
Captain MARTINEAU. That is for temporary.

Mr. MILLER. Temporary?

Captain MARTINEAU. Yes, sir.

So let us assume that he receives that promotion in his 28th year of service and he becomes a brigadier general. Then he would receive a substantial increase to $904. He continues as a brigadier general until 30 years of service, when he receives in-grade increase, and then we will assume that he is selected and promoted to the grade of major general, when he receives another increase in pay.

Now, under present law the pay scale stops at 30.

In order to increase the overall career incentive and to give some recognition to the officers of flag and general officer grade with over 30 years of service and longer, over 35 years of service, particularly those who attain higher grade, three- and four-star rank, under the existing pay table in which the highest grade is a major general, that is the only way that any further increase can be provided.

So under this bill

Mr. MILLER. Captain, I will agree with you that you need a reward for that service and it should be a reward in recognition of the service, but I hesitate to use the word "incentive" at that point. Because is a major general or a rear admiral going to say at the point of 30 years service, "Well, I need an incentive of $100 a month to get a third star or I might get out of the service"?

Captain MARTINEAU. I would like to answer your question this way. First of all the answer to your question is absolutely not, he is not going to leave.

Mr. MILLER. Right. I am for rewarding him

Captain MARTINEAU. You could reduce Admiral Grenfell's pay and he is still going to be an admiral, he is not going to leave.

Mr. MILLER. I don't want to do that, he is too good

Captain MARTINEAU. But if you do reduce an officer's pay of distinguished high rank, or if you do not pay him what he is worth and if it is not in relation to other positions of responsibility in the Gov

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