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3. In the past 17 years major improvements in weapons and organization of personnel to serve these weapons have occurred in the Army. A large number of Army units which were formerly horse-drawn have been motorized, or mechanized. As the efficiency of weapons and instruments improved, their mechanical complexity increased. This is especially true in aircraft, antiaircraft, communications, motorized artillery, mechanized cavalry and infantry, and the automatic arms. These improved weapons and instruments require greater technical skill on the part of both operating and maintenance personnel. These duties require a large number of occupational specialists. The Army therefore searches through its recruiting service for young and untrained personnel, whom it is then necessary to train in Army schools until technical skill commensurate with the duties to be performed is acquired. By the time a limited amount of operating experience has been gained as a radio operator, airplane mechanic, X-ray technician, aerial photographer, or other occupational specialist, the technician has been informed that his Army-acquired specialty has a value far greater than the pay scale of the Army can ever adequately reward, and that by severing his connections with the Army through discharge by purchase, or through expiration of term of service, he can, by taking examination (not necessary in all cases) which he can readily pass, obtain employment in the civilian community or in some other department of the Government where his rate of pay from the start will be many times as great as his Army pay for this specialty.

4. In addition to those specialists who left the Army at the expiration of their terms of enlistment, there were 8,867 discharges by purchase in the fiscal year 1937. While it cannot be determined how many of those men who were discharged at expiration of term of service, and who did not reenlist, obtained employment in the civilian community, it must be assumed that the overwhelming proportion of them did so, as otherwise they would have reenlisted. On the other hand, it can be said that all of the men who purchased discharge in 1937 (8,867) did so because they could better themselves by employment in other branches of the Government service or in the civilian community.

5. As representative of this situation, the following are a few specific instances: Infantry.-Captain of the infantry rifle team on September 12,1937, reports discharge by purchase of eight enlisted team members (rifle and pistol) to accept employment with the Chrysler Corporation in Detroit in their Plant Protective Department (company police) at following salary:

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One private from the Headquarters, Washington Brigade, in September 1937, for employment as above.

Signal Corps (From Sixth Corps Area only)

Position:
Radio Operator Inland Waterways Corporation.
Assistant Communication Operator, Department of Commerce_

Assistant Communication Operator, Department of Commerce_
Assistant Communication Operation, Department of Commerce_
Under Communication Operator, Department of Commerce.

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Air Corps.--Chanute Field (June 29, 1937): Three enlisted instructors, Department of Photography, have applied for discharge to accept positions with the Agriculture Adjustment Administration at pay of $6.38 per day, while working at base station, plus .4 cents a mile for the use of their own cars and $4 per day additional when working away from base station.

Bolling Field (August 18, 1937): Seven enlisted men from photographic personnel have applied for or have been discharged to accept employment with the North Central Division of the Agricultural Adjustment Administration.

In connection therewith, the Commanding Officer, Bolling Field, stated in his second endorsement to the commanding general, Third Corps Area, dated August 18, 1937, it would appear that the Assistant Director of the Agriculture Adjustment Administration is attempting to build up his photographic section by taking most of the key men of the photographic section at this station and if all these applications were approved the photographic section at Bolling Field will be unable to operate as such until additional men can be trained.

6. It would therefore appear that under existing conditions of pay, pension, and retirement in the Army, many soldiers are using the Army as a proving

ground for the perfection of their technique on modern aircraft, engines, and accessories; modern radio apparatus; modern photography, and in motor vehicle operation and maintenance, preparatory to obtaining employment in the civilian community or in some other Governmental department at more than double his present pay at the start. It is further reported, for example, that in the Los Angeles area, where the commercial aviation industry is flourishing, it has become increasingly difficult to retain trained mechanics at March Field.

7. It should not be inferred from the foregoing that the Army objects in any manner to an enlisted man bettering himself through such training as an occupational specialist as he can obtain in the Army. In fact, the Army encourages such action on the soldier's part, inasmuch as at the present time the Army cannot hold out to him a comparable career. Furthermore, such men who have received training as occupational specialists in the Army at considerable cost to the Government are non-the-less available for service either in the Army or in industries which will serve the country in the event of mobilization for war.

Hon. FRANK T. HINES,

(Signed) L. D. GASSER, Brigadier General, Assistant Chief of Staff.

[Copy]

Administrator of Veterans' Affairs,

DEPARTMENT OF THE NAVY,

OFFICE OF THE SECRETARY,
Washington, May 4, 1938.

United States Veterans Administration, Washington, D. C.

SIR: The following information for use in consideration of an increase in peacetime pensions is submitted.

It is developed from reports submitted from the four Training Stations, covering the first 6 months of the fiscal year 1938, with the exception of the data concerning trade qualifications, which is taken from the Bureau of Navigation records covering December 1937-March 1938, both inclusive.

Average age at enlistment, 19.76 years.

Percentage completing high school, 38.8 percent.
Percentage attending college, 2.7 percent.

Percentage with trade qualifications, 26 percent.

With regard to a comparison between enlisted men of the Navy and personnel under Civil Service, it must be admitted that for the first year of service the enlisted man is under training and will not compare favorably with Civil Service employees. From the completion of the first year, however, the enlisted man will compare favorably with any such personnel, and his continued service is progressively an advance in skill and earning power.

There is one omission in the table above which can be supplied in the near future if desired, i. e., percentage attending high schools without completing course. This will require more time than was available in the preparation of this table.

Respectfully,

H. J. ABBETT, By direction of the Secretary.

[Copy]

MAY 7, 1938.

Capt. H. J. ABBETT, U. S. N.,

Director, Enlisted Personnel Division, Bureau of Navigation, Navy Department,
Washington, D. C.

MY DEAR CAPT. ABBETT: The receipt is acknowledged of your letter of May 4, 1938, furnishing certain statistical information for use in consideration of an increase in pension rates for veterans of the Regular Establishment.

If data showing the percentage attending high schools without completing the course can be supplied in the near future, without requiring too much work, it might prove helpful and we would appreciate having such data.

The courtesy extended to the representative of the Veterans' Administration who called on you requesting the information and your very prompt compliance are very much appreciated.

Very truly yours,

FRANK T. HINES,
Administrator.

[Copy]

DEPARTMENT OF THE NAVY,
OFFICE OF THE SECRETARY,
Washington, May 16, 1938.

Hon. FRANK T. HINES,

Administrator of Veterans' Affairs,

U. S. Veterans' Administration, Washington, D. C.

SIR: Receipt is acknowledged of your letter of May 7, 1938, with reference to certain information for use in consideration of an increase in pension rates for veterans of the Regular Establishment. In compliance with your request, there is enclosed herewith table showing schooling of recruits.

I am indeed sorry for the delay in replying, but I have been out of town and did not receive your letter until this morning. Trusting that this delay has not inconvenienced you and that the attached information will be satisfactory, I am Respectfully yours, Н. Ј. АВВЕТТ, By direction of the Secretary.

Memorandum for CAPTAIN ABBETT:

MAY 10, 1938.

The following table completes the report on the schooling of recruits, submitted by Mr. Smith on May 3, by showing separately the number of men completing grades 8, 9, 10, and 11 for the period, July to December inclusive, 1937. The total number entering but not completing high school is 3,510 or 42.7 percent.

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Certain tables pertaining to the study incorporated in the first part of this submission were revised March 10, 1938, and June 30, 1938, and are included below:

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1 Excludes veterans previously paid as World War or Spanish War cases.

Regular establishment veterans with service subsequent to 1898-Continued

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Analysis of age and length of service of regular establishment veterans on rolls Jan

Less than 20.

20 to 29..

30 to 39.

40 to 49.

50 to 59.

Age 60 and over..

Total..

31, 1938 1

AGE AT DISCHARGE

Age group

1 Excludes veterans previously paid as World War or Spanish War cases.

2 Does not include 108 cases on which no age was given.

3 Average age at discharge, 27.

20 to 29.

30 to 39.

40 to 49

50 to 59

60 to 69.

AGE IN 1938

70 and over

Total.

4 Average age in 1938, 39.

LENGTH OF SERVICE

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A study of regular establishment veterans on the rolls Jan. 31, 1938, showing the action taken under laws enacted since Mar. 20, 1933

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1 Includes changes due to changed physical condition.

2 Does not include veterans with service prior to 1898 or those previously paid as World War or Spanish War cases.

Source: Budget and Statistics Mar. 10, 1938.

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