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VETERANS' ADMINISTRATION

Cost of officers, nurses, and men on hospital staffs, incident to hospitalization of Veterans' Administration patients, for which reimbursement is received by the Navy

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Reimbursement from State Department to cover cost of radiomen on duty with State Department, not to exceed $35,000

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In addition to the amount under "Pay, subsistence, and transportation, Vary" amounts to other appropriations are included as follows:

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PAY OF NAVAL PERSONNEL

PAY AND ALLOWANCES OF ACTIVE OFFICERS

Admiral CONARD. The first project covers pay and allowances, officers, active; “(a) Pay, base, plus longevity, officers, active."

This item covers base pay plus longevity of officers on active duty. Officers with less than 30 years' service receive an increase of 5 percent every 3 years. The operation of the various economy measures changed the average rate of pay so that it is no longer a reliable basis for estimating. This estimate is made by adding length of service and estimated promotions to the present members. In that connection, the following table is submitted:

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1 The deduction of 6 is made because of reimbursement ($18,806) received from the Veterans' Administration.

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Mr. UMSTEAD. I notice that under this item you are asking for an increase over the 1938 appropriation of $726,714.

Admiral CONARD. Yes, sir.

Mr. UMSTEAD. What is the basis of that increase, Admiral? Admiral CONARD. The increase in that amount is due, first, to an increase in numbers of 241, at an average pay of $3,124.69, approximately. There is a decrease in the rate of the 9.939 previously paid of $2.65, making a net addition of $726,714.

Mr. UMSTEAD. Do you mean by that statement that 241 additional officers are expected to enter the service in the fiscal year 1939 at an average pay of $3,124.69 each?

Admiral CONARD. There will be an average of 241 additional off cers during the year.

Mr. UMSTEAD. I believe that the pay of officers is regulated statute.

Admiral CoNARD. Yes, sir.

Mr. UMSTEAD. If they are put in the service, their pay is aute

matic.

Admiral CONARD. Absolutely.

Mr. UMSTEAD. Explain why there is a decrease in the pay of 9,939 -fficers of $2.65 each?

Admiral CONARD. There are officers coming in at lower rates of pay, or new officers, and, therefore, the resultant average of pay for the original number is somewhat lowered.

Mr. PLUMLEY. $753,050 is what they would be entitled to receive, ut they do not, in fact, receive it.

Admiral CONARD. No, sir; the average of new officers receive that mount. Of course, these figures are the result of computations and ecomputations of what the Navy will cost during the coming fiscal

ear.

PAY OF MIDSHIPMEN

Admiral CONARD. This item covers pay of midshipmen at $780 er annum. The estimated numbers are averages for the year furshed by the Bureau of Navigation.

The detailed statement of the estimate is as follows:

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It is estimated that 75 less midshipmen on an average will be in the Naval Academy in 1939 than were covered by the appropriation for 1938.

The average numbers are determined by taking the number in ach class and applying one-half of the expected annual attrition for ach class (2 percent for first class; 4 percent for second class; 11 percent for third class; 14 percent for fourth class) and then taking the sum of the average in each class thus determined.

Mr. UMSTEAD. In connection with this item for pay of midshipmen, I notice there is a decrease of $58.500 under the appropriation for the year 1938. This decrease is caused simply by the fact that here will be an average of 75 fewer midshipmen at the Naval Academy during the fiscal year 1939 than during the fiscal year 1938. Admiral CONARD. That is correct.

ADDITIONAL PAY FOR ACTIVE OFFICERS ON AVIATION DUTY

Mr. UMSTEAD. The next subhead covers additional pay and allowalices of officers for aviation duty.

Admiral CONARD. Yes, sir. The additional pay for aviation duty Is 50 percent of the regular pay, except as to certain officers detailed

for observers who receive additional compensation at the rate of

$1,440 per annum.

Mr. UMSTEAD. Insert the table under that head. (Said table is as follows:)

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NOTE. Decrease in number 24, increase in cost $29,218.

Mr. UMSTEAD. Admiral, will you explain why an increase is requested under this subhead.

Admiral CONARD. There is an estimated decrease in number of 24 officers on aviation duty, but there is estimated, also, an increase in the average pay of the officers remaining on aviation duty, and the difference between the amounts representing the total increase in the cost of those remaining, less the pay saved by those not serving, is $29,218.

Mr. UMSTEAD. Why does the pay of those remaining on active aviation duty increase during the fiscal year 1939?

Admiral CONARD. There will be more officers of higher rank. There is a large increase in the lieutenants; there is an increase of commanders, and, also, an increase of captains.

ACTIVE DUTY AVIATION PAY OF REAR ADMIRALS

Mr. UMSTEAD. Admiral, I believe for this fiscal year we allow active duty aviation pay for three rear admirals, and in the bill now before us the Department is requesting that pay for four rear admirals. Admiral CONARD. Yes, sir.

Mr. UMSTEAD. Why is that?

Admiral CONARD. It is the desire to have two officers of the rank of rear admiral serving on shore and two at sea. I think I will ask the representative of the Bureau of Navigation, who is well posted or that point, to give you the exact reason.

Captain WILKINSON. There are four qualified aviators of the ra! of rear admiral in the aeronautical organization whose duties w require them to be, not only directing aviation activities, but al

lying, and maintaining their ability to fly. Those four are the commander of the Air Force, Scouting Force, the commander of the second division of carriers, the Chief of the Bureau of Aeronautics, and the commandant of the naval air station at Pensacola, where the raining operations are carried on.

Mr. UMSTEAD. Do the rear admirals mentioned by you actually fly? Captain WILKINSON. They do actually fly and actually pilot lanes.

Mr. UMSTEAD. Most of their pay under this item merely goes for he time spent by them in the air, with someone else doing the pilotng, does it not?

Captain WILKINSON. Not necessarily. They are flying themselves, to keep in condition, and they will be actually in the air undergoing the hazard for which this extra aviation pay is supposed to be a compensation, whether they are piloting or not. They actually do fying a good deal of the time.

Mr. UMSTEAD. Is this aviation pay based on the number of hours that an officer flies, or is it paid regardless of the number of hours Hown?

Captain WILKINSON. It is not based directly upon the number of hours, but a certain minimum number of hours are required before any pay can be drawn.

Mr. UMSTEAD. What is the extra aviation duty pay of a rear admiral?

Captain WILKINSON. Aviation duty pay for all grades is 50 percent of the base pay. For a rear admiral, it will be three or four thousand dollars, depending on which pay grade he is in, in the lower half or the upper half of the rear admirals' list.

ADDITIONAL PAY OF ACTIVE OFFICERS FOR SUBMARINE DUTY

Admiral CONARD. The next project is for additional pay of officers for submarine duty.

Mr. UMSTEAD. Let the table under that head appear at this point. (Said table is as follows:)

(d) Pay, additional for submarine duty

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