in the District of Columbia and elsewhere, to be paid at a rate not exceeding $8 per day, and for personal services in the field; for furniture and other equipment and repairs thereto; law books, books of reference, periodicals; stationery and supplies; traveling expenses; fees and mileage of witnesses; contract stenographic reporting services; rent at the seat of government and elsewhere; and miscellaneous items; $466,450.

PRINTING AND BINDING

Mr. WOODRUM. Your item for printing and binding, on page 51 of the bill, is

For all printing and binding for the Employees' Compensation Commission, $8,000.

EMPLOYEES' COMPENSATION FUND

Mr. WOODRUM. Your item for the employees' compensation fund is on page 52 of the bill, as follows:

Employees' compensation fund: For the payment of compensation provided by "An act to provide compensation for employees of the United States suffering injuries while in the performance of their duties, and for other purposes", approved September 7, 1916 (U. S. C., title 5, sec. 785), including medical examinations, traveling and other expenses, and loss of wages payable to employees under sections 21 and 22; all services, appliances, and supplies provided by section 9 as amended, including payments to Army and Navy hospitals; the transportation and burial expenses provided by sections 9 and 11; and advancement of costs for the enforcement of recoveries provided in sections 26 and 27 where necessary, accruing during the fiscal year 1938 or in prior fiscal years, $4,650,000.

EMPLOYEES' COMPENSATION FUND, CIVIL WORKS

Mr. WOODRUM. There is an item for the employees' compensation fund, civil works, on page 54, as follows:

For administrative expenses and payment of compensation in connection with the administration of the benefits for employees of the Civil Works Administration in accordance with the provisions of the Act entitled "An Act making an additional appropriation to carry out the purposes of the Federal Emergency Relief Act of 1933, for continuation of the Civil Works program, and for other purposes", approved February 15, 1934 (48 Stat., p. 352), and in connection with the administration of the benefits authorized by title V of the Act entitled "An Act to liberalize the provisions of Public Law Numbered 484, Seventy-third Congress, to effect uniform provisions in laws administered by the Veterans' Administration, to extend the Employees' Compensation Act with limitations to certain World War veterans and other persons, and for other purposes", approved June 29, 1936, $233,800 of the special fund set up on the books of the Treasury pursuant to the provisions of said Act shall be available for expenditure during the fiscal year 1938.

EMPLOYEES' COMPENSATION FUND, EMERGENCY CONSERVATION WORK

Mr. WOODRUM. Your item for the Employees' Compensation Fund, Emergency Conservation Work, on page 56 of the bill, is as follows: For administrative expenses and payment of compensation in connection with the administration of the benefits for enrollees of the Civilion Conservation Corps in accordance with the provisions of the Act entitled "Emergency Appropriation Act, fiscal year 1935", approved June 19, 1934 (48 Stat., p. 1057), $835,000, of the special fund set up on the books of the Treasury pursuant to the provisions of said Act shall be available for expenditure during the fiscal year 1938.

EMPLOYEES' COMPENSATION FUND, EMERGENCY RELIEF

Mr. WOODRUM. The next item is on page 58, Employees' Compensation Fund, Emergency Relief, as follows:

For administrative expenses and the payment of compensation in connection with the administration of the benefits authorized by section 2 of the Act entitled "Emergency Relief Appropriation Act of 1935", approved April 8, 1935 (49 Stat. 115-119), and by the "Emergency Relief Appropriation Act of 1936", approved June 22, 1936 (49 Stat. 1608), $2,582,360 of the special funds set up on the books of the Treasury pursuant to the provisions of the said Acts shall be available for expenditure during the fiscal year 1938.

JUSTIFICATIONS FOR 1938 ESTIMATES

Mr. WOODRUM. Mr. McCauley, do you want to make any general statement on the various items covering the Employees' Compensation Commission?

Mr. MCCAULEY. We would like to present the statement filed with the committee in justification of the estimates as a part of our general statement, as it explains various items in the estimates and gives other information concerning the work of the Commission. Mr. WOODRUM. We shall be glad to have that.

(The statement referred to is as follows:)

STATEMENT TO ACCOMPANY ESTIMATES OF APPROPRIATIONS FOR THE FISCAL

YEAR 1938

The estimates of appropriations for the United States Employees' Compensation Commission provide funds to cover the cost of administering the Federal workmen's compensation laws under the jurisdiction of the Commission and for the payment of compensation benefits awarded to civil employees of the United States. In addition to a direct appropriation for this purpose, the estimates propose to make available from special funds set aside in the Treasury, pursuant to the provisions of the acts of February 15 and June 19, 1934, April 8, 1935, and June 22, 1936, the amount required during the fiscal year 1938 for administrative expenses and the payment of compensation on account of claims relating, respectively, to employees of the Civil Works Administration, enrollees in the Civilian Conservation Corps, relief workers employed on Federal employment projects authorized by the Relief Appropriation Acts of 1935 and 1936, and certain other emergency employments.

The laws administered by the United States Employees' Compensation Commission are as follows: (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. S. C., Supp. VII, title 35, 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., p. 600), providing compensation for employees in private enterprise in the District of Columbia who suffer occupational injuries in the service of their employer. The compensation law applicable to workmen on Federal projects created for the relief of unemployment may for all practical purposes be considered a new Federal workmen's compensation law. The conditions and limitations under which the Federal employees' compensation law of September 7, 1916, is made applicable to such employment modify the basic law to such an extent that the result is the same as though an entirely new and different compensation law had been enacted for this emergency employment. In view of this, the provisions of the act of February 15, 1934, relating to compensation for disability and death are referred to herein as the emergency workmen's compensation law.

Nearly 90 percent of the total amount carried in the estimates for the fiscal year 1938 is for the payment of compensation benefits extended to civil employees of the United States, including those on emergency relief projects.

(Compensation benefits extended to employees in private enterprise are paid by the employer directly or by his insurance carrier.) The estimates provide $7,675,529 for this nonadministrative expense as compared with $954,881 for administrative expenses. The estimates for the fiscal year 1938 represent a reduction of approximately 22 percent below the revised estimate of expenditures for the fiscal year 1937. Only 60 percent of the total amount carried in the estimates is to be provided through a new appropriation. The remaining 40 percent is to be made available from the special funds established by the transfer of funds from emergency relief appropriations to cover the cost of compensation benefits extended to certain emergency employments created in connection with the recovery program.

While extension of the Federal Employees' Compensation Act of September 7, 1916, to emergency relief employments obviously necessitated a substantial enlargement of the Commission's administrative organization, the increase in administrative work in the office of the Commission has not, however, been confined to the adjustment of cases arising out of such emergency employment. The records of the Commission show that the number of new injuries reported from Federal establishments other than emergency work projects during the fiscal year ended June 30, 1936, exceeded the record for any prior year. The same is true in respect to the cases reported under the District of Columbia's workmen's compensation law. The number of new cases reported under the Longshoremen's and Harborworkers' Compensation Act is the largest in any year since 1929. The following tabulation shows the number of injuries reported to the Commission under each of the laws administered by it for each fiscal year from 1932 to 1936, inclusive':

The increase in the number of cases reported under the Federal Employees' Compensation Act effects both the administrative and nonadministrative appropriations. In this connection it should be noted that notwithstanding the apparent intent of the Federal Emergency Appropriation Acts of 1935 and 1936 to provide a special fund for the payment of compensation benefits to persons (exclusive of administrative personnel) receiving salary or wages paid from that appropriation, this result will not be achieved. Additional obligations against the employees' compensation fund, some of which may extend over a long period of years, will be created on account of injuries arising out of certain employments financed by funds provided through these relief appropriations. It is understood that in some instances funds have been allotted to executive departments or establishments of the Federal Government for additional personnel in connection with the activities of the agency receiving the allotment not classified as relief work. The personnel so employed apparently will qualify as civil employees of the United States and in the event of injury would apparently be entitled to full compensation benefits payable from the employees' compensation fund. The special funds authorized by section 2 of the Emergency Relief Appropriation Act of 1935 and also by the Relief Appropriation Act for 1936 do not appear to be available for the payment of compensation under such circumstances. The provisions of the law establishing the special funds apparently relate exclusively to work relief personnel as distinguished from personnel engaged in administering the relief program. The number of persons that may be employed by the executive departments and establishments in the manner indicated above, and the number of persons employed on the relief program who may qualify as administrative employees is not known to the Commission. For this reason it is not possible at this time to anticipate with any degree of accuracy the probable additional obligations against the compensation fund resulting from this situation, but it appears safe to assume that this may represent a considerable sum.

The several appropriations and special funds are discussed separately in greater detail in the paragraphs that follow.

This appropriation, supplemented by funds transferred from the annual appropriation for the government of the District of Columbia, covers all general administrative expenses of the Commission in the administration of the three workmen's compensation laws under its jurisdiction, exclusive of administrative costs incidental to the adjustment of claims arising out of the injury of persons employed on Federal relief projects. Administrative expense chargeable to claims reported from these emergency employments is payable from special funds established in the Treasury for this purpose. The funds transferred from the appropriation for the government of the District of Columbia are for the payment of the administrative expenses relating exclusively to the administration of the workmen's compensation law applicable to private employment in the District.

The estimate of this appropriation for the fiscal year 1938 is $3,200 more than the amount appropriated for the fiscal year 1937. This increase is proposed in order to enable the Commission to undertake a moderate program for accident prevention work in the Federal service. The Commission is convinced that there is urgent need for greater activity for the prevention of accidents in employments within the purview of the Federal workmen's compensation laws. With this end in view it recently undertook preparation of a monthly bulletin designed to show the number, cause, and cost of accidents reported by each bureau or office in the Federal service.

It is also intended to use this bulletin as a medium for suggesting means for the prevention of such accidents and for an exchange of information between Federal agencies respecting accomplishments in accident prevention. The bulletin is to be distributed to all supervisory personnel responsible for directing the work of others, and the Commission believes this will be the means of encouraging greater efforts for the prevention of accidents while at work. Not the least of the ultimate benefits of this will be the saving in compensation costs. The small increase in administrative expenses contemplated by this program should prove a sound investment which should be repaid many times over through the saving in compensation benefits. The Federal Government is perhaps the largest individual employer and thus far it has lagged far behind private employers in taking steps to reduce its losses from industrial accidents, although the Commission in its annual reports has consistently called attention to the need for such action.

The principal items for which funds are provided in this appropriation are analyzed by objects of expenditure in the paragraphs which follow.

Salaries, departmental.-The estimate for salaries in the Departmental service for the fiscal year 1938 provides for the same administrative staff at the same salary rates contemplated for the fiscal year 1937 and for an increase of two employees. The additional positions are one assistant safety engineer whose services will be required in connection with studies the Commission proposes to make in respect to the causes of accidents and means for their prevention and one additional clerk for duty in connection with the administration of the District of Columbia workmen's compensation law. The salary of the latter, estimated at $1,500 per annum, is not reflected in the net appropriation for the Commission. This particular increase is properly chargeable to the government of the District of Columbia and the amount of funds to be transferred from that source has been increased accordingly.

Salaries, field.-The field staff of the Commission was established for the administration of the Longshoremen's and Harbor Workers' Compensation Act and its functions relate almost entirely to that activity. The Commission has 12 district offices in the field with an authorized personnel of 58 employees.

The district offices are located in larger port cities conveniently accessible to the maritime employments within the scope of this law. This is almost essential as it is necessary, in connection with the claims of injured employees, for the deputy commissioners of the Commission to hold hearings and make investigations within the compensation district in which an injury occurs. With

the exception of the office for the second compensation district which is located in New York City, the staff in the respective district offices does not in any case exceed five employees. The present field staff is at the minimum necessary for the efficient conduct of the work in the field and the estimate for the fiscal year 1938 provides salaries for the continuation of this staff at the same salary rates contemplated for the fiscal year 1937.

Medical examinations.-The funds provided in the estimate for medical examinations is for the payment of professional services rendered by private physicians in the examination of claimants under the Longshoremen's and Harbor Workers' Compensation Act and the District of Columbia Workmen's Compensation Act. (The cost of medical examinations of Federal employees is payable from the employees' compensation fund.) The services of United States medical officers for which no charge is made are used so far as practicable for medical examinations and the cost is considerably reduced by reason of this practice. These services are not always available at the place where the examination must be made, and the services of private physicians must be obtained under such circumstances. The number of medical examinations is necessarily controlled to a very large extent by the number of controverted claims, and therefore the cost of this item is subject only to limited administrative control. The estimated cost of this service for the fiscal year 1938 is the same as the amount allocated from the appropriation for the fiscal year 1937.

Supplies and materials.-This item includes miscellaneous office supplies and materials and the cost of subscriptions for scientific or technical publications relating directly to the work of the Commission that are considered necessary for administrative purposes. The largest item of expense under this classification is the cost of file jackets for new cases reported to the Commission annually, and indexes for properly recording and identifying these cases. increase has been provided in the estimate for this item.

No

Communication service.-The largest item of expense included under this classification is for telephone service for the office of the Commission in Washington and for the district offices in the field. The estimated cost is based on the authorized rates in effect at this time. Other items included under this classification are telegraph service and registration fees on notices and orders which are required by law to be sent by registered mail. The amount provided in the estimate for this item is the same as the estimated cost for the fiscal year 1937.

Travel expense.-In the administration of the Federal Employees' Compensation Act it is necessary to make investigations in the field in connection with claims for compensation and in the administration of the Longshoremen's and Harbor Workers' Compensation Act, it is necessary for Deputy Commissioners of the Commission to make investigations and hold hearings at all ports in which there may be any employment within the scope of that law. The field investigational work is coordinated in the interest of economy, so far as practicable, by having the field personnel assigned to the administration of the Longshoremen's and Harbor Workers' Compensation Act make investigations in connection with claims of Federal employees while traveling incidental to their usual duties. Investigations are also made from the office of the Commission in Washington when necessary and advantageous. The amount provided for this item in the estimate is the same as the amount allotted for the fiscal year 1937.

Stenographic reporting service.--The cost of this item, like that covering medical examinations, is an expense relating exclusively to the administration of the Longshoremen's and Harbor Workers' Compensation Act and the District of Columbia Workmen's Compensation Act. Hearings held before a deputy commissioner of the Commission in cases arising under the respective laws must be stenographically reported. The number of hearings held in the cities in which the district offices of the Commission are located is not sufficiently large to justify the employment of a full-time court reporter, and it has found it more economical and satisfactory to have this service performed under contract. The number of hearings cannot be controlled by administrative action since the law provides for a hearing upon the applica