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Washington, D.O. The committee met at 10 a. m., pursuant to recess, in room F-39, the Capitol, Hon. Edward J. Thye, presiding.

Present: Senators Thye, Hayden, and Ellender.





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Obligations by objects

Object classification

1953 actual

1954 estimate 1955 estimate


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Total number of permanent positions
Full-time equivalent of all other positions.
Average number of all employees.
Average salaries and grades:
General schedule grades:

Average salary

Average grade.
Crafts, protective, and custodial grades:

Average salary.

Average grade
Ungraded positions: Average salary.
01 Personal services:

Permanent positions..
Other positions.
Regular pay in excess of 52-week base.
Payment abore basic rates.

Total personal services..
02 Travel
03 Transportation of things.
04 Communication services.
05 Rents and utility services
06 Printing and reproduction.
07 Other contractual services..
08 Supplies and materials.
09 Equipment.
10 Lands and structures
11 Grants, subsidies, and contributions.

Deduct charges for quarters, subsistence, and laundry.

Obligations incurred.

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Senator THYE. The committee will please come to order.
We will proceed with this morning's hearing.

Senator Knowland called me last evening and stated that he had to attend a conference at the White House this morning and asked that I take the chairmanship. That is the reason I am calling the meeting to order.

General Haislip, we will proceed with you, sir.

General HAISLIP. I have been the Governor of the United States Soldiers' Home for almost 21/2 years and my pride in being associated with this fine establishment has steadily increased since my appointment. Therefore, it is with pleasure that I appear before you today to justify our request for funds to operate the home for fiscal year 1955.

By remaining an honorable and comfortable refuge for the old, invalid, and disabled soldiers of the Regular Army and Air Force of the United States who have faithfully served their country in peace as well as war, the home stands as a considerable morale factor to the career soldier. He feels, on entrance, a pride which comes from personal contribution to a home which will afford him comfort and medical care for the remainder of his life.

He finds, after entrance, that he has become a member of a selfrespecting community and is among men whose service in the Regular Army and Air Force has developed similar habits of living and outlook and that there is a community of interest that is unique. He is

doubly proud that the cost of his home is not a burden on the taxpayer nor the community.

This distinct community of interest, as well as security in old age, has been a factor in the encouragement of service in the Regular Army and Air Force. Such encouragement appears to be needed at the present time, certainly insofar as the Army is concerned.


In his semiannual report for the period January 1 to June 30, 1953, the Secretary of the Army states in part as follows:

It is a disturbing fact that the Army is finding it increasingly difficult to attract and hold career soldiers, a situation which could have grave consequences. Remedial action is vitally necessary if we are to be assured in the future of the type of military leadership we now have and which is indispensable to our national safety.

Despite a vigorous reenlistment program, for example, the 1953 reenlistment rate in the Regular Army was only half of even the modest percentage we had anticipated, although there was a substantial increase during the last 2 months of the year. This means that a large number of the trained and experienced noncommissioned officers upon whose continued leadership we had counted bearily were lost to the career service.


The total membership of the home on December 31, 1953, was 1,556. The home was filled to capacity and there was a waiting list of 238.

The average age of the members is 65 years and most of them are disabled to some degree because of age, wounds, disease, or other infirmities.

Membership is confined to former warrant officers and enlisted men who have had some service in the Regular Army or Regular Air Force. In addition, membership is limited to: 1. Those who have served honestly and faithfully 20 years or more. 2. Those of less than 20 years service who are rendered incapable of earning their own livelihood by reason of disease or wounds incurred in the military service of the United States, in line of duty, and not the result of their own misconduct.

3. Those of less than 20 years service who have served during any Far or military operation in which their lives were hazarded, or who have contributed except through fines and forfeitures, to the support of the United States Soldiers' Home, and who, by reason of wounds, sickness, old age, or other disability incurred after enlistment or aggravated by military service, are unable to earn their own livelihood.

It has been determined, by the administrative authorities concerned, that all laws and regulations applicable to personnel of the United States Army, in relation to the Soldiers' Home, are equally applicable to personnel of the United States Air Force.

MAINTENANCE AND OPERATION FROM TRUST FUND Appropriations for the maintenance and operation of the home are not made from the general fund of the Treasury, but are made from the Soldiers' Home permanent fund, which is a trust fund.

While the home budget appears as part of the President's budget, it is not included in the total of that budget.

The establishment of a home to care for old and disabled soldiers was apparently first brought up in the Congress in 1829 and a report by the Committee on Military Affairs of the House of Representatives favored the establishment of such a home and stated that it was to be "without cost to the Government."

In 1841, the matter was again reported on by the same committee which favored a "plan which imposes no additional burden on the community."

Still again in 1845 and 1846 we find favorable reports, the one stating “without calling for the appropriation of a single dollar,” and the other, “that it does not ask any contributions of the Treasury of the Government."


Finally, the act of 1851 established the home and provided that it would be financed, not from the general revenues of the Treasury, but by a trust fund built up from other sources, the principal ones now being:

1. A monthly contribution made by each enlisted member of the Regular Army and Regular Air Force.

2. Fines and forfeitures which are imposed upon soldiers and airmen of the Regular forces by sentence of courts-martial.

3. Interest of 3 percent on the permanent fund deposited in the United States Treasury which is credited to the fund by the Treasurer of the United States.

Senator THYE. General, if you do not mind an interruption at that point, as long as we are on the question of funds, would it be possible to get a complete report of where these funds come from and a tabulation showing the income from the sources in the past 5 years?

General HAISLIP. Yes, sir; I do have a tabulation.

Senator THYE. If we could have it for the record, we will place it in the record at this point and it will enlighten those of us who have to refer to the report at the time of either supporting it to the full committee, or supporting it on the floor.

Thank you for that information.
(The information referred to follows:)

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$9, 353, 539

Court-martial fines..

$6,466, 066.64 $4,928, 525. 15 $5, 167, 258.54 $7,637, 937.63 Withheld pay (monthly deduc

tions) (act of Feb. 13, 1936).. 1,035, 498. 97 675, 465. 39 1, 366, 552. 68 Interest

853, 436.77 888, 703. 99 1,065, 228. 25 | 1, 200,988. 12 All other..

1,043, 701. 05 160, 036. 96

298, 808. 03 196, 146.56 127, 791.66 Total.

8,550, 306. 566, 968, 026. 827, 930, 945. 90 9, 662, 867, 11

1,632, 461 1, 258, 198

212, 314

12, 456, 512

General HAISLIP. I will also insert here in the record a table showing the status of the permanent fund for the past 5 years:

(The table referred to follows:)

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