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writing, and asked for assistance of responsible officers, and was informed by the personnel officer in charge of my work, whose name was Lt. Comdr. Theodore Ruddock, that I should either take back my letter or resign from the services. I had a family to support, and had a lifetime of naval service, of one sort and another behind me and, therefore, was constrained to continue to bear the burdens placed upon me, which in regular service, on the same class of ship, would have been done by 53 men in the crew instead of 10 (later 12) and by 5 officers instead of 1, as in my case. The ship was steaming 1,000 miles per month, and serving 1,000 officers and men yearly, on week-end cruises, leaving me absolutely no rest days and too few rest nights.

The annual examination for 1931 proved also to be too superficial to discover my heart condition, and, in spite of my reports to the medical officers, they passed it up and I was sent back to duty again.

In the months of March and April 1931 I went to the hospital for general treatment. I was to be released from duty and I determined to have something done before losing my legal rights to hospitalization. I was given an operation for an hydrocele with local anesthesia and kept in bed for some weeks. I reported all the time my remarkable fatigue and extreme exhaustion, but was not given the examination which later brought out the defects. I was released to active duty again without any attention to my plea and reports.

On April 30, 1931, I was examined for release from the service by an interne with the rank of lieutenant (junior grade), whose lack of experience and knowledge of professional, medical, and legal affairs placed him in the embryo stage only. That I was closing a career of Government work of 32 years altogether, and of 14 years full time naval military service, should have required a most conscientious examination, seemed unknown to him. I explained my recent hospital experience and my exhaustion for the past 2 years, but he passed me out and I was released without examination of the sort the occasion demanded.

On August 18, 1931, exactly 3 months 18 days after my release from command of my ship, and my other assignments, I fell totally unconscious, without warning, and was carried to the naval hospital as a Veterans' Bureau patient. I was kept there 6 weeks and given a very searching series of examinations and from several electrocardiograms it was definitely determined that I had been developing chronic heart failure during an indeterminate period prior to my collapse, and probably from 18 months before when I first began to complain about my chronic fatigue and lack of strength and loss of stamina and nerve power, as reported to the medical officers on so many occasions.

This report was an official document filed presumably with the Navy Department in my medical record, and at least with the Veterans' Bureau, on form N. M. S. 59 dated September 18, 1931, and signed by Commander R. J. Davis, Naval Medical Corps, on duty at the San Diego Naval Hospital. An original copy of this report and diagnosis is with this atidavit.

I was warned by the naval medical officers and later by private physicians, never to attempt to engage in wage earning on pain of suffering either an early death or immediate death. That I would ever after have to lead a retired life. This was given to me, believing, of course, that I would be retired, and in the case of all my fellow officers, they would have been immediately so retired and cared for since last August.

That my fine powerful constitution has been permanently weakened and my life expectancy taken from me, due wholly and solely to my having had to carry unusual and exceptionally wearing burdens not required of any one man for such a length of time as I bore them, beginning with 1925 and closing in 1931, the last 2 or 3 years being those in which I began to feel myself slipping.

Furthermore, in closing my aff davit, I depose and swear that my sole income has been from a naval salary entirely, during my entire life from the age of 18 years down to the present time.

That even my college education, which I have contributed to the naval service, in both law and engineering, was paid for out of moneys saved from a naval salary.

That I am now without a profession due to severance from active duty, and I have not the health to engage in wage earning due to reasons heretofore sworn to, That I am not able to support my family, nor even to pay the taxes and assessment that are required in this city, which is a cruel result of my career for the naval defenses of our Nation.

I beg the consideration of the honorable Congress for my case, and feel that the tradition of caring for worthy invalids who have become so in actual service, will continue in my case and provide me with some form of care, retirement, if possible, and at least some form in any case.

Further deponent sayeth not.

The following letter from the Secretary of the Navy addressed to the Chairman of the Committee on Naval Affairs sets forth the views of the Navy Department on this bill and is hereby made a part of

this report:

NAVY DEPARTMENT,

Washington, January 29, 1935. The CHAIRMAN COMMITTEE ON NAVAL AFFAIRS,

House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: The report and recommendation of the Navy Department on the bill listed below are the same as previously submitted to the Chairman House Naval Affairs Committee on the date indicated: H. R. 2130, April 20, 1934. Sincerely yours,

CLAUDE A. SWANSON. The report and recommendation referred to above are as follows:

Navy DEPARTMENT,

Washington, April 20, 1934. The CHAIRMAN COMMITTEE ON NAVAL AFFAIRS,

House of Representatives. MY DEAR MR. CHAIRMAN: Replying further to the committee's letter of April 9, 1934, transmitting the bill H. R. 4142, "for the relief of John M. McNulty", and requesting the views and recommendation of the Navy Department thereon, I have the honor to inform the committee as follows:

The purpose of this bill is to appoint John M. McNulty a lieutenant commander on the Naval Reserve officers' retired list of the Navy, with the retired pay of that rank as provided by law for officers retired by reason of physical disability incident to service.

The records of the Navy Department show that Mr. McNulty was enrolled as a lieutenant (junior grade) United States Naval Reserve Force, on May 22, 1917. He reported for active service on June 5, 1917, and served on active duty until July 17, 1919. From July 18, 1919, to March 19, 1923, he was in an inactive status except for various periods of training duty. On March 19, 1923, he was ordered to active duty in connection with the instruction, training, and drilling of the Naval Reserve in the eleventh naval district, and continued in this status until April 30, 1931, when he was released from active duty.

The release of Mr. McNulty was effected as the result of certain changes in the plan of operations from which it became evident that a number of Reserve Officers could be released from active duty without detriment to the Navy or Naval Reserve. There was no contract or understanding of any kind, between Reserve officers ordered to active duty and the Navy Department, as to the permanency of their employment, and they are by law ineligible for retirement with pay. Mr. McNulty has, since his release from active duty, appealed to the Navy Department on several occasions for transfer to the retired list of the Navy, basing his appeal on his claim that his disability is the result of active service.

Prior to the passage of the Emergency Officers' Retirement Act (45 Stat. 735; U. S. C., Supp. VII, title 38, secs. 481, 582), numerous special bills were introduced in behalf of Reserve officers and former Reserve officers for the purpose of placing them on the retired list of the Navy. The Navy Department consistently recommended against the passage of these bills, but stated that it would have no objection to the officers concerned being placed upon the Emergency Officers' retired list, a bill for the establishment of which was then under consideration in Congress. After the passage of the Emergency Officers' Retirement Act most of these cases were considered and taken care of by the Veterans' Administration.

This bill, H. R. 4142, is similar to H. R. 9380, introduced by ex-Congressman Swing during the Seventy-second Congress, on which an adverse report was made by the Navy Department, under date of March 22, 1932. Since said date, namely, on November 26, 1932, a report has been received from the commanding officer of the United States Naval Hospital, San Diego, Calif., stating as follows:

"The questions asked by Congressman Swing have been referred to the medical officers who had charge of the case of the subject-named officer. It is their opinion that the myocardial disease secondary to coronary sclerosis existed 6 months or more prior to August 18, 1931, when he experienced a short period of unconsciousness.

As coronary sclerosis is a chronic process which takes years to advance to a degree to sufficiently impair the circulation of the heart muscle and produce myocardial degeneration or coronary occlusion with bundle branch block, it is highly probable that on August 18, 1931, a small coronary occlusion was present, giving rise to the bundle branch block which has persisted.”.

This legislation if enacted would result in additional cost to the Government of approximately $2,812.50 per annum.

Inasmuch as /. R. 4142, if it should become law would establish a precedent that could be used by an indeterminate number of other Reserve officers who may claim to be in a similar situation, the Navy Department is unable to recommend its enactment notwithstanding the statement above quoted.

It is noted that H. R. 4142 reads: “to appoint Lieutenant Commander John M. McNulty, United States Naval Reserve, a lieutenant commander on the Naval Reserve officers' retired list of the United States Navy", whereas the act provides for retired lists to be known as "the emergency officers' retired list of the Army, Navy, or Marine Corps of the United States, respectively."

If the committee, regardless of the recommendation of the Navy Department, decides to give favorable consideration to this bill, it is suggested that the following proviso be added:

Provided, That no compensation, retirement pay, back pay, pension, or other benefit shall be held to have accrued prior to the passage of this Act.” Sincerely yours,

H. L. ROOSEVELT, Acting. O

THE SOCIAL SECURITY BILL

APRIL 5, 1935.-Committed to the Committee of the Whole House on the state

of the Union and ordered to be printed

Mr. Doughton, from the Committee on Ways and Means, submitted

the following

REPORT

(To accompany H. R. 7260)

The Committee on Ways and Means, to whom was referred the bill (H.R. 7260) to provide for the general welfare by establishing a system of Federal (old-age benefits, and by enabling the several States to make more adequate provision for aged persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws, to establish & Social Security Board, to raise revenue, and for other purposes, having had the same under consideration, report it back to the House without amendment and recommend that the bill do pass.

PART I. GENERAL STATEMENT

CONTENTS OF BILL

This bill provides for various grants-in-aid to the States; establishes a Federal old-age benefit system and a Social Security Board; and imposes certain taxes, hereinafter described.

Title I: Grants-in-aid are to be made to the States for old-age pensions to persons who have reached the age of 65. In making these grants the Federal Government will match what the States put up, within certain limits.

Title II: A system of Federal old-age benefits, payable to people who have reached the age of 65, will begin in 1942. These benefits are to be measured by wages, and are payable wholly regardless of the need of the recipient.

Title III: Grants-in-aid are made to the States, to pay the administrative costs of State unemployment compensation systems. The

H. Rept. 615, 74-1-1
4-8-35.

amounts authorized should be sufficient to meet these costs, and no matching is required.

Title IV: Grants-in-aid are to be made to the States to assist them in giving aid to dependent children. In making these grants, the Federal Government will, within certain limits, put up one-third of the total amount paid in the State for aid to dependent children.

Title V: Grants-in-aid are made to the States for aid in their serv. ices relating to maternal and child welfare, the care of crippled children, and vocational rehabilitation. Most of these grants are to be made on an equal matching basis.

Title VI: Grants-in-aid are to be made to the States for developing their public health services, and authorization is made for the Public Health Service to carry on its investigatory work.

Title VII: A Social Security Board, which is to be an independent agency in the executive branch of the Government, is established. The board is to have three members, holding office for 6-year terms.

Title VIII: An income tax, measured by a certain percentage of wages (beginning with 1 percent in 1937 and increasing to 3 percent by 1949), is levied on most wage earners, with certain large groups, such as domestic servants and agricultural laborers, exempted. An excise tax, measured at the same rates on wages paid, is levied on employers, with similar exemptions. These taxes first take effect on January 1, 1937.

Title IX: An excise tax is levied on employers of 10 or more persons (with certain exemptions), measured by 1 percent of wages payable for 1936 and increasing to 3 percent by 1938. This tax goes into effect on January 1, 1936, and is first payable a year later. Credits against the tax are allowed for contributions which the taxpayer may bave made to State unemployment funds under State unemployment compensation laws.

Title X: This title contains general definitions and miscellaneous provisions applying to the whole act.

HISTORY OF LEGISLATION

Legislation on the subject of social security was promised the country in a Presidential message of June 8, 1934, in which he said:

Our task of reconstruction does not require the creation of new and strange values. It is rather the finding of the way once more to known, but to some degree forgotten, ideals and values. If the means and details are in some instances new,

the objectives are as permanent as human nature. Among our objectives I place the security of the men, women, and children of the Nation first.

This security for the individual and for the family concerns itself primarily with three factors. People want decent homes to live in; they want to locate them where they can engage in productive work; and they want some safeguard against misfortunes which cannot be wholly eliminated in this man-made world of ours.

Subsequently, the President (by Executive order) created the Committee on Economic Security, composed of the Secretary of Labor (chairman), the Secretary of the Treasury, the Attorney General, the Secretary of Agriculture, and the Federal Emergency Relief Administrator, instructing the committee to study the entire problem and to make recommendations which might serve as the basis for consideration of legislation by the present Congress.

The Committee on Economic Security devoted 6 months to this study in which it was assisted by a staff of specialists and by 14

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