of the higher grade. That his disqualification may be of tempor duration and due to a physical ailment suffered in line of duty c not alter this fact.

In view of the foregoing, it is not felt that there is justificatio: i the payment of the pay and allowances of the higher rank upon tez rary promotion except from such date as the officer was actu capable of performing the duties of such rank.

Accordingly, the Navy Department recommends against enactr of the bill H. R. 5112.

The Navy Department has been advised by the Bureau of Budget that there would be no objection to the submission of: recommendation.

Sincerely yours,

FORRESTAL

O

[No. 258]

TO PROVIDE FOR THE INVESTMENT IN UNITED STATES SAVINGS BONDS OF PAY AND ALLOWANCES CREDITED TO PRISONERS OF WAR AND CERTAIN OTHER PERSONS ABSENT FROM THEIR POSTS OF DUTY (H. R. 4599). MR. MAGNUSON

Hon. CARL VINSON,

NAVY DEPARTMENT, Washington, September 25, 1944.

Chairman of the Committee on Naval Affairs,

House of Representatives.

MY DEAR MR. CHAIRMAN: The bill (H. R. 4599) to provide for the investment in United States Savings bonds of pay and allowances credited to prisoners of war and certain other persons absent from their posts of duty, was referred to the Navy Department by your committee with request for report thereon.

The purpose of the proposed legislation, as indicated by its title, is to amend the Missing Persons Act so as to provide for investment in United States Savings bonds of pay and allowances credited to prisoners of war and persons in a status of missing, missing in action, interned in a neutral country, beleagured, or besieged.

At the time the bill H. R. 4599 was introduced the provisions of the Missing Persons Act as to continuation, initiation, and increase of allotments during a person's status as a prisoner of war or as a missing person was limited to allotments for dependents or insurance premiums. Subsequent to the introduction of the proposed legislation the Missing Persons Act was amended by Public Law 408, Seventy-eighth Congress, and the provisions with respect to allotments broadened to include War-bond purchases. The report of the Naval Affairs Committee of the House accompanying the amendatory bill, stated that "Since the original enactment there has been a great increase in the volume of allotments for savings, for War-bond purchases, and for other financial commitments of the allotter. The wisdom of this change has been demonstrated by experience and in particular by many direct and indirect indications from prisoners of war and others that they wish some of their accumulating funds invested in War bonds or otherwise used for the advantage of the individual or his family or estate."

*

*

The Missing Persons Act, because of the amendment above referred to, is adequate to authorize the Department concerned to carry out the principal purpose of the bill H. R. 4599 and hence its enactment is unnecessary. Moreover, certain of the changes in existing law which would result from enactment of the bill in its present form are not considered desirable.

The bill would make mandatory an investment in war bonds of all a missing person's pay and allowances except such as is allotted for support of dependents or payment of insurance premiums. Doubtless prisoners of war and missing persons who return will be in immediate need of funds. In many cases it would be a hardship if (2459)

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they are required to wait for these funds until their bonds can redeemed. Little or no interest would have accrued to the individu in such cases and the Government would have been put to the cosiderable expense of issuing and canceling the bonds in question.

The proposed legislation would create uncertainty as to the author ity of the department concerned to increase allotments and establis new allotments. Subsection (b) of the bill provides:

subsection (a) of this section shall not affect any allotment of pay and allowances of any such person for the support of dependents or for the payment of insurance premiums.

This might be interpreted to apply only to "any allotment

of any such person" as contrasted with an allotment made by the Department concerned on his behalf.

The bill does not specify the time and manner in which pay an allowances shall be invested in bonds, but provides that the bonds shall be held by the Secretary of the Treasury until the person in whose name it is registered makes application for its possession. There is presently in operation a well-established procedure by which personnel of the Naval Establishment may purchase savings bonds by allotments in multiples of $6.25, the bonds being held by the Secretary of the Navy subject to the purchaser's direction. This is considered preferable to the change proposed by the bill.

The bill provides that in case of death of the owner of the bond. the Secretary of the Treasury shall provide for disposition of the bond as part of the owner's estate. In view of the fact that the General Accounting Office settles such person's accounts, it is believed that distribution of the proceeds of the bonds in question should be included in this settlement of his accounts rather than made the subject of a separate settlement, possibly made with different distributees. Including the proceeds in the general settlement would not only be simpler and more satisfactory to the Government and the distributees but would also safeguard disbursing officers in case of any erroneous credits in favor of the owner which had been used as a basis of purchasing the bonds.

Enactment of the proposed legislation in its present form would also result in having provisions relating to investments in War bonds in two sections of the bill-section 3 which at present authorizes such purchases and which is well integrated with the other provisions of the Missing Persons Act, and section 2, which the bill H. R. 4599 would amend by adding the provisions above discussed. These provisions are not well integrated with the provisions of the Missing Persons Act and would create interpretative difficulties.

For the foregoing reasons, the Navy Department recommends against the enactment of the bill H. R. 4599.

The Navy Department has been advised by the Bureau of the Budget that there would be no objection to the submission of this recommendation.

Sincerely yours,

RALPH A. BARD,

Acting Secretary of the Navy.

こ

[No. 259]

O AMEND THE ACT APPROVED FEBRUARY 3, 1942, SO AS TO PROVIDE FOR AN ASSISTANT COMMANDANT FOR AIR OF THE MARINE CORPS, TO PRESCRIBE THE RANK OF THE ASSISTANT COMMANDANT AND THE ASSISTANT COMMANDANT FOR AIR, AND TO AMEND THE ACT APPROVED JUNE 22, 1938, AS AMENDED, SO AS TO EXTEND ITS RETIREMENT PROVISIONS TO THE ASSISTANT COMMANDANT AND THE ASSISTANT COMMANDANT FOR AIR, AND FOR OTHER PURPOSES (H. R. 5147). MR. MAAS NAVY DEPARTMENT, Washington, October 7, 1944.

Hon. CARL VINSON,

Chairman of the Committee on Naval Affairs,

House of Representatives.

MY DEAR MR. CHAIRMAN: The bill (H. R. 5147) to amend the act approved February 3, 1942, so as to provide for an Assistant Commandant for Air of the Marine Corps, to prescribe the rank of the Assistant Commandant and the Assistant Commandant for Air, and to amend the act approved June 22, 1938, as amended, so as to extend its retirement provisions to the Assistant Commandant and the Assistant Commandant for Air, and for other purposes, was referred by your committee to the Navy Department with a request for a report thereon.

The purpose of the bill H. R. 5147 is to provide for an Assistant Commandant for Air of the Marine Corps who, under the direction of the Commandant, would be in charge of all Marine Corps air activities. Such officer would be junior to the Assistant Commandant which title would be created for the existing Assistant to the Commandant. Both officers would be granted the rank, pay, and allowances of a major general while serving in such capacities, and would be extended the retirement provisions now applicable to the Commandant of the Marine Corps, the Chief of Naval Operations, chiefs of bureaus, and the Judge Advocate General.

The proposed offices now exist in the actual administrative organization of Marine Corps Headquarters. The office of Assistant to the Commandant was created by the act of February 3, 1942 (34 U. S. C., Supp. III, 623a). That act conferred no increased rank upon the holder of the office, but provided that he should receive the highest pay of his rank and should, unless otherwise directed by the President, perform the duties of the Commandant during his absence, disability, or in the event of a temporary vacancy in that office. It followed generally the language of the act of May 27, 1930 (5 U. S. C. 426a) establishing the office of Assistant to the Chief of Naval Operations. Although the office of Assistant Commandant for Air has not been. established by law, the officer serving as Director of Marine Corps (2461)

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Aviation has been designated administratively by the Command as Assistant Commandant for Air, and functions effectively under present arrangement.

In the event the appointee to either of the proposed offices h: lower rank than that of major general, he would be automatical advanced to that rank under the proposed bill. So far as the I partment is aware, there is no precedent in existing law where advance in rank in the Marine Corps such as is proposed in H. R. 515 may be conferred other than by the President, by and with the adv and consent of the Senate.

The proposed legislation would affect the permanent organizat of the Marine Corps. Neither the post-war strength of the cor nor its post-war commitments, which will of necessity affect t Marine Corps organization, and particularly the command organiz tion, are known at this time. It is the opinion of the Navy Depar ment that the enactment of legislation which will permanently aff the permanent organization of the Marine Corps is undesirable un the entire post-war problem can be considered as a whole.

For the foregoing reasons, the Navy Department recommen against the enactment of the bill H. R. 5147.

The Navy Department has been advised by the Bureau of th Budget that there would be no objection to the submission of th recommendation.

Sincerely yours,

FORRESTAL