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All expenses of the other classes of the Reserve are borne from the appropriation “Organizing the Naval Reserve." These transferred men having already performed from 16 to 20 years' active naval service, are considered to be sufficiently trained and do not require further training. They are to be utilized upon mobilization for further augmenting the crews of combatant and other vessels, where required. They form a valuable part of the Naval Reserve.

There are now approximately 12,000 of these transferred 16- and 20-year men in the Naval Reserve. Under the provisions of law they remain in this classification of the Reserve indefinitely, or until physically disqualified, or until their total naval and Naval Reserve service is 30 years when they are transferred to the retired list of enlisted men of the Navy.

The number of officers and enlisted men of the Fleet Naval Reserve belonging to actively drilling organizations thereof is approximately 1,050 officers and 8,700 men.

THE MERCHANT MARINE NAVAL RESERVE

The Merchant Marine Naval Reserve is made up of officers and men of the American merchant marine who join the Naval Reserve and are available in the event of war for service on naval auxiliaries or in the naval transportation service. The law provides that they shall receive annually under such regulations as the Secretary of the Navy may prescribe not to exceed 1 month's base pay of their grade, contingent upon a sufficient appropriation being made by Congress for this specific purpose. No such appropriation has thus far been made, although repeatedly requested by the Department. However, the importance of this class of the Reserve is such that the Department has not felt justified in waiting for an appropriation, but has proceeded with its organization, administration, and instruction as well as possible upon a purely volunteer basis, without funds. The law also gives to American merchant vessels of certain characteristics, with a certain minimum of reservists on board, the privilege of flying a distinctive pennant indicative of this fact.

Under the above noted conditions of purely volunteer activities, no effort has been made to enroll enlisted men in the merchant marine class of the Naval Reserve, so that this class now consists exclusively of officers totaling approximately 3,300. Somewhat above 200 American merchant vessels have been warranted to fly the Naval Reserve flag.

THE VOLUNTEER NAVAL RESERVE

The Volunteer Naval Reserve is composed of officers and men available for general detail in the event of war, according to the qualifications of the various individuals. They are not required by law to drill or to perform training duty. They may however, under

, the law, be permitted to perform training duty with pay if they so desire, at the discretion of administrative authority. Also, they are permitted to associate themselves with divisions of the Fleet Reserve for the purpose of acquiring training, but they do not receive any compensation therefor.

The Volunteer Naval Reserve is composed of two main subdivisions: (a) Those officers and men qualified for combatant duties

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afloat in a degree similar to the Fleet Naval Reserve, and (6) those officers and men of limited qualifications available for specific technicist and specialist duties. The mobilization duties of the former will mostly be afloat; and the mobilization of the latter, mostly ashore. Among the general service officers are many who saw service in the last war, as Navy officers and men, Naval Academy and Reserve Officers Training Corps graduates, Pensacola graduates with the designation "naval aviators", all of whom except for lack of vacancies or because of places of residence or for other reasons might belong to organizations of the Fleet Naval Reserve. However, there are many of these who do not desire to perform drills or training duty, but who, nevertheless, due to their previous naval experience are valuable adjuncts to the Naval Reserve. Among the enlisted men are those who through previous naval or other sea-going experience are qualified for immediate mobilization, without further training, and others, in certain of the trades such as baker, machinist, boilermaker, coppersmith, etc., are also qualified. Still others, without previous naval service of any kind, are permitted to enroll and associate themselves with fleet divisions of the Naval Reserve where they drill for a time without remuneration, and thus receive a degree of training not otherwise open to them within available appropriations.

The specialist class is composed mostly of those whose civilian occupations fit them for their prescribed mobilization duties.

Among these are mechanical and other types of engineers, certain executives and others connected with the aviation industry, aviation transport pilots, medical and dental specialists, specialists in the textile, transportation, and other industries, naval instructors, civil engineers, ordnance engineers, lawyers, communication engineers, and those who by training or environment are especially qualified for duty in the naval intelligence service.

Included in the Volunteer Naval Reserve is the Naval Communication Reserve, composed of radio engineers and specialists in communication ratings, who have formed themselves into voluntary organizations for the purpose of receiving instruction in this branch. The instruction being given by means of high frequency broadcasting sets which have been installed at advantageous points and send out code messages of instruction at designated times. These are very active, and have already rendered valuable service in maintaining communications with areas stricken by tornado, earthquake, or food. These activities are performed voluntarily without remuneration.

There are 1,939 general-service and _2,325 special-service officers now on the rolls of the volunteer Naval Reserve. And of the enlisted men, there are 3,900 associated with the actively drilling organizations of the Fleet Reserve, 3,900 connected with the Naval Communication Reserve, and 2,600 at large who have had previous training or are already qualified in ratings held.

It is desirable that all these inactive reservists of the volunteer class be brought into occasional contact with the Navy, and this is done insofar as the availablity of funds will permit.

The objects to be attained through the amendments of the various sections of the act of February 28, 1925, as proposed in this bill are as follows:

Section 1: The proposed amendment to section 6 of the act of February 28, 1925, would permit the Secretary of the Navy to dis

charge from all classes of the Naval Reserve those convicted and sentenced by the civil courts for felonies. At the present, the Secretary has not this authority with respect to those fleet reservists in enlisted ratings who have been transferred to the Fleet Naval Reserve from the Regular Navy after 16 or 20 years' naval service. We now have a few such cases-transferred fleet reservists who have been convicted of felonies and are actually serving penitentiary sentences. The only way they can be discharged from the Naval Reserve at the present is by sentence of a court martial. But since they have already been tried and convicted, they may not again be tried for the same offense. This amendment would permit their discharge from the Naval Reserve, as a result of their trial and conviction by the civil authorities, without further legal action. Since there are no longer any enrolled men in the Naval Reserve, and assigned men will disappear in a few months, and since the provisions of the section as amended would apply to all men alike, the indicated words should be deleted.

Section 2: The proposed amendment to section 14 of the act has for its object the relief of those reservists who may be physically injured in line of duty while performing authorized drills or other duly authorized duty, which may not at the present be classed as "training duty." Under the various provisions of the act of February 28, 1925, the words "active duty “training duty”, “drills", "equivalent instruction or duty”, and “appropriate duties” all have distinct and definite meanings. At the present, reservists who may be injured in line of duty while performing active or training duty, with or without pay, are entitled to the benefits prescribed for civilian employees of the Government under the Federal Employees' Compensation Act. These benefits are under the jurisdiction of, and administered by, the United States Employees' Compensation Commission, the same as for civilian employees.

It sometimes happens that a reservist is injured while performing armory drills, or while performing drills at the aviation bases, involving the actual operation of aircraft. There have been cases of men getting their fingers jammed at loading machine drill, of men being burned while performing drills alongside dock on board vessels assigned for this purpose, of men being struck by moving propellers of airplanes while at drill, and even of fatal airplane crashes. At the present, these men are not entitled to compensation of any kind nor eren to medical attention other than first aid. A few of these cases have been especially distressing on account of the injured man being the sole support of his family. It is felt that the technicality now existing which denies these men of the benefits they would otherwise have received, should be removed, and that all such injuries actually received in the service of the Government should be remunerated. This amendment is designed to accomplish these ends. It is estimated that the enactment of this amendment will result in an additional cost to the Government of approximately $2,000 per annum.

Section 3: The proposed amendment to section 21 of the act has for its object the revision of the basic plan of organization of the Aviation Reserve. The basic administrative unit of organization for the aviation branch is the squadron, whereas the basic administrative unit for the sea-going branch is the division. Existing law prescribes drill pay for members of divisions only. It has therefore been necessary to make the division also the administrative unit of the Aviation Reserve. Also, most members of the battalion staff and squadron staff perform their prescribed appropriate duties under existing law by actual drill attendance, the same as members of the various divisions. In the amendment the word “organization” has been substituted for the word "division”. This section as amended will place the Naval Reserve on a parity with the National Guard insofar as drill pay is concerned and will also correct the objectionable features indicated above.

Section 4: The proposed amendment to section 35 of the act has for its object the reimbursement of those officers of the Volunteer Naval Reserve who have been placed in command of organizations thereof. All members of the Naval Communication Reserve belong to the volunteer class. These are organized into sections and units for the purpose of acquiring technical knowledge in radio communications and naval procedure. This instruction is given by means of high-frequency broadcasting sets which have been installed at advantageous points and send out code messages of instruction at designated times. Many of these Communication reservists are radio enthusiasts owning and operating their own radio broadcasting and receiving amateur sets. A radio network has thus been established over which these radio drills are carried. This network has proved valuable during peace times when certain communities have been visited by such catastrophies as earthquake, hurricane, or flood, placing out of commission all ordinary means of commercial communication. These people are very enthusiastic and carry on their activities without remuneration of any kind.

In connection with the administration of these units there is a considerable amount of administrative work, and also of expense such as clerical assistance, necessary travel, etc.' To in part remunerate the commanding officers of these organizations for their time, effort, and expense in this connection, it is felt that they should receive at least the same administrative pay as is received by members of the Fleet Naval Reserve for the performance of similar duties, namely, $240 per year. It will be noted that under the provisions of the proposed amendment none of these may receive this $240 per year unless designated therefor by the Secretary of the Navy. The Secretary of the Navy cannot of course designate a greater number than has been appropriated for, without incurring a deficiency, which is a punishable offense. Pending an actual appropriation for this purpose, none would be designated, or only such number as savings from other reserve activities could accommodate. The enactment of this amendment would, however, contemplate the appropriation of sufficient funds for all of these, amounting to approximately $25,000 per annum.

Section 5: At the time of the passage of the act of February 28, 1925, it was contemplated that the activities of the volunteer class of the Naval Reserve would be negligible, and that no appropriations would be required for the purpose. Such, however, has not proved to be the case. The interest and enthusiasm displayed by members of the Volunteer Reserve generally, and especially by the Naval Communication Reserve, is gratifying. At the present, the classes of the Naval Reserve for which the Secretary of the Navy is required by law to submit annual estimates, does not include the volunteer class. The proposed amendment to section 35 of the act, as covered in the previous section hereof, would also entail this additional subparagraph to section 38 of the act. The same comments as to reasons and expenses apply hereto as were given under the previous section.

The Navy Department favors the enactment of this proposed legislation as is indicated by the letter of the Secretary of the Navy to the Speaker of the House of Representatives which is hereby made a part of this report.

NAVY DEPARTMENT,

Washington, February 8, 1935. The SPEAKER OF THE HOUSE OF REPRESENTATIVES,

Washington, D. C. MY DEAR MR. SPEAKER: There is transmitted herewith a draft of a bill to amend in certain particulars the act approved February 28, 1925, entitled "An act to provide for the creation, organization, administration, and maintenance of a Naval Reserve and a Marine Corps Reserve”, as amended, and for other purposes.

The purposes sought to be accomplished by the proposed legislation are set forth in the following paragraphs in which each section of the bill is explained in numerical order in which it appears in the enclosed draft.

SECTION 1

This section of the bill, amending section 6 of the act approved February 28, 1925 (43 Stat. 1081, U. S. C., title 37, sec. 755), herinafter referred to as the Naval Reserve Act, authorizes the Secretary of the Navy to discharge men from the Naval Reserve who have been transferred from the Regular Navy to the Fleet Naval Reserve, in the event that such men are sentenced by the civil authorities to confinement in a State or Federal penitentiary. Under existing law there is no method by which the discharge of such undesirable men can be effected other than by the sentence of a general court martial, and, in the cases of men convicted and sentenced for an offense by Federal courts, even this method is unavailable since a subsequent trial by general court martial for the same offense would be defeated by a plea of former jeopardy. The result is that it is possible under existing law for a man undergoing sentence in a penitentiary to hold his status as a member of the Fleet Naval Reserve and to receive the pay provided by law for a man holding such status. Obviously such a situation is highly undesirable, and the amendment of the Naval Reserve Act, in the manner provided by this section of the bill, will constitute a simple, expeditious, and effective remedy for it.

No additional cost to the Government will be involved by the enactment of this section of the bill. In fact its enactment will result in a saving in every instance in which the authority conferred by it upon the Secretary of the Navy is exercised.

SECTION II This section of the bill, amending section 14 of the Naval Reserve Act, extends the benefits of existing law relating to Naval Reservists who are physically injured in line of duty while performing active duty or training duty, to those members of the Naval Reserve who may be injured while performing "drills”, “equivalent instruction or duty", or "appropriate duties.” Recently three Naval Reservists were injured while performing armory drills, and their claims for compensation were denied. The Navy Department believes that injuries received by members of the Naval Reserve while performing authorized drills should receive the same consideration as injuries received while on active duty or training duty.

It is estimated that the enactment of this section of the bill will involve an additional cost of $2,000 per annum for both the Naval and Marine Corps Reserve

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SECTION III

This section of the bill, amending section 21 of the Naval Reserve Act, extends existing law, providing for the compensation of officers below the rank of lieutenant commander for attending drills, to officers of the rank of lieutenant commander. It also provides that such officers who are attached to battalions or squadrons, as well as to divisions, shall receive that compensation. Further amendment is made so that the officers above the rank of lieutenant commander, instead of officers above the rank of lieutenant, will receive the authorized compensation of not more than $500 a year for the satisfactory performance of appropriate duties.

The amendments contained in this section of the bill, if enacted, will not involve any additional cost to the Government, and will facilitate the organiza

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