figures, that I wouldn't say there has been so much personal discrimination by administrators against veterans. Denial of W. P. A. employment to veterans has been necessitated by reason of the circumstances in the particular State and in the particular county or region, because of the quotas which have been assigned. If the quotas are large enough not only to take care of those in class A-those without either assets or income-but many of those in class B-those with some income or assets then we don't have difficulty in securing W. P. A. employment for the veterans. But where the quota is such that it doesn't take care of all of those in class A, then we fail to secure employment for veterans with a slight amount of compensation on account of disability, because such compensation payments place them in class B.

PERCENTAGE OF SERVICE-CONNECTED DISABLED VETERANS RECEIVING LESS THAN $30 A MONTH COMPENSATION

May I supplement the statistics given by Congressman Van Zandt by stating that 45 percent of all service-connected disabled veterans receive less than $30 a month compensation; that about 58 percent of them receive less than $40 a month; and about 81 percent of all serviceconnected disabled veterans receive less than $60 a month compensation.

AVERAGE WORK PROJECTS ADMINISTRATION WAGE

I understand that the average W. P. A. relief wage is between $55 and $60 a month. So that you could say that about 81 percent of the service-connected disabled veterans receive less income by reason of their compensation than does the average W. P. A. employee.

NUMBER OF SERVICE-CONNECTED DISABLED VETERANS

There are now nearly 350,000 service-connected disabled veterans, and I would surmise that our amendments might add to the rolls maybe 30,000 to 50,000 additional veterans not now employed. There are about 225,000 veterans registered with the employment offices as in need of employment. Many of them are now employed with the W. P. A. We believe, however, there would be at least an equal number in addition to that not registered with the employment offices, because they find constant registration does not get them a job; so they have finally failed to reregister. So that there might be 500,000 or 600,000 veterans in this country still unemployed but employable. I do think it is particularly important that these disabled veterans should no longer be discriminated against, because the young men of the Nation observe those facts. If the problem can only be solved by giving them the opportunity to surrender their disability compensation, provided the W. P. A. itself is given the authority to make the certification of their need for employment, we are willing to submit to that, although we think it ought not to be forced upon us.

Thank you very much, Senator, for giving us this opportunity to be heard.

STATEMENT OF JACK KYLE, NATIONAL EDUCATIONAL DIRECTOR, REGULAR VETERANS' ASSOCIATION

EMPLOYMENT PREFERENCE FOR PEACETIME VETERANS

Senator ADAMS. Mr. Kyle, you are interested in the veterans' preference provisions of the bill?

Mr. KYLE. Yes, sir.

Senator ADAMS. We have had two gentlemen, Mr. Van Zandt and Mr. Rice, who have gone over it rather extensively-just so you will know we have had this subject already presented to the committee.

PROPOSAL TO INCLUDE VETERANS OF PEACETIME ESTABLISHMENT

Mr. KYLE. Mr. Chairman, we are interested in amending section 10 to include veterans of the peacetime establishment. As the Houseapproved bill stands, preference is provided only for veterans of the World War, the Spanish-American War, and veterans of any campaign or expedition in which the United States has been engaged. We ask the committee to consider amending this section to include all honorably discharged soldiers, sailors, marines, and Coast Guard men. For several years they have been given preference for civil-service employment, and the non-civil-service agencies of the Government have followed the practice almost wholly. We now ask that these men be given the same preference on relief projects.

Most of these men entered the service when they were very young men and did not have an opportunity to become skilled workers. Fully 90 percent of them-and that is an estimate-are not skilled and they must compete in the unskilled labor field.

NUMBER IN UNITED STATES HAVING A PEACETIME SERVICE STATUS

There are approximately 2,000,000 men in the United States who have a peacetime service status. Their widows are not entitled to a pension unless they were discharged for and receive compensation for service-connected disabilities. We would like to see the widows of the peacetime men who have received compensation receive preference on relief projects, in accordance with their relative needs.

We are not asking the Congress to set our group up ahead of all others, or even on a par with any other one group, but according to relative needs. We feel this group of men are most anxious to do their part in this emergency. Those fit for employment in industry are being taken right along, and the Government is also taking them. Because of their training and their understanding of discipline, they are highly desirable. But the group left behind, not able to compete in civil-service examinations or to following the skilled trades, are in a very precarious position.

PREFERENCE GRANTED BY CIVIL SERVICE COMMISSION

The Civil Service Commission grants 10 points preference on a competitive examination to all honorably discharged soldiers, sailors,

marines, and Coast Guard men with service-connected disability of a compensatory degree, and 5 points to all others. As stated in the earlier part of my statement, practically all of the non-civil-service agencies have given these men this preference, and it has been generally the practice in industry to so consider these men.

We would like to get these men included in section 10 of this bill for preference, of course, in accordance with their relative needs. As to those veterans receiving compensation and who pass on, we believe their widows should be entitled to some measure of prefer

ment.

TEXT OF PROPOSED AMENDMENT

Senator ADAMS. You have phrased your ideas in the shape of an amendment?

Mr. KYLE. I have not, Mr. Chairman; I would be very glad to do that.

Senator ADAMS. I wish you would do that. You will have to do it very promptly, because we are moving on to get it in shape quickly. Mr. KYLE. Would any time today be satisfactory?

Senator ADAMS. The sooner the better.

Mr. KYLE. All right, sir; I will have it in sometime today.
Senator ADAMS. That is all you had in mind, is it?

Mr. KYLE. Yes, sir.

Senator ADAMS. We are obliged to you.

Mr. KYLE. Thank you, Mr. Chairman.

(Mr. Kyle later submitted the following amendment :)

Strike out all of section 10 (a) and substitute the following:

"SEC. 10, (a) In employing, assigning, reassigning, or retaining in employment on Work Projects Administration work projects, preference shall be given in the following order: (1) Veterans of all wars in which the United States has been engaged; (2) veterans of all expeditions and campaigns in which the United States has been engaged; (3) former members of the Army, Navy, Marine Corps, and the Coast Guard who have served during peacetime, and (4) unmarried widows of any former soldier, sailor, marine, or Coast Guard man, and the wives of such veterans as are unemployable, who have been certified as in need of employment by the Work Projects Administration or by any agency designated by it so to certify: Provided, That if the monthly income of any such employable veteran from all sources is less than the monthly earnings such veteran would receive if employed as a project worker of the Work Projects Administration, then such veteran shall be certified as in need of Work Projects Administration employment, and shall be assigned so much of such employment as will permit his total monthly income from all sources to be in at least such amount as would be obtainable by full-time employment on such project; and (5) other American citizens, Indians, and other persons owing allegiance to the United States, who are in need, in the order of their relative needs in each region, insofar as practicable and feasible."

ALLOCATION OF FUNDS TO OTHER FEDERAL AGENCIES

STATEMENTS OF PAUL P. STEWART, CHIEF, EMERGENCY PROJECTS SECTIONS, OFFICE OF BUDGET AND FINANCE, UNITED STATES DEPARTMENT OF AGRICULTURE; S. A. ROHWER, ASSISTANT CHIEF, BUREAU OF ENTOMOLOGY AND PLANT QUARANTINE; AND EARL W. LOVERIDGE, ASSISTANT CHIEF, FOREST SERVICE

AMOUNT AVAILABLE TO OTHER FEDERAL AGENCIES DURING CURRENT FISCAL YEAR AND AMOUNT ALLOWED BY HOUSE FOR 1942

Senator HAYDEN. Mr. Chairman, at my request, Mr. Paul Stewart, Mr. Rohwer, and Mr. Loveridge are here, and I want to ask them some questions about section 6 of the bill, on page 11.

During the current fiscal year, there were allocated from W. P. A. funds $44,000,000 to other Federal agencies. For 1942, as passed by the House of Representatives, that sum has been reduced to $5,000,000. I would like to find out what the effect of the reduction is going to be upon such activities of the Department of Agriculture as Dutchelm-disease control, the gypsy-moth quarantine work, tree planting, grasshopper-control work, the bark-blister control, and other activities, what will happen the 1st of July if this bill is enacted into law in its present form?

EFFECT OF PROPOSED REDUCTION FOR 1942

Mr. STEWART. We will have to reduce very radically the number of projects operating under the Federal agency program. This year we have had $11,000,000. We are subject to allocation by W. P. A. from the $5,000,000 now provided. We have no way of knowing how much of that $5,000,000 would be available to the Department of Agriculture. It makes it impossible at this time to plan intelligently next year's operations. There are certain of our projects which we feel do not operate in the State program as satisfactorily as in the Federal agency program. Some of our projects can and will operate in the State program, if necessary.

As to the actual difficulties for specific activities occasioned by transfer to State programs, I think Mr. Rohwer and Mr. Loveridge can speak more specifically as to their particular activities; but the general effect would be that we would have to transfer all possible projects immediately. We feel that it would work out more satisfactorily to retain some of these activities in the Federal agency program for a while and we would prefer to have to transfer as few as possible to the State programs, at this time.

WORK OF BUREAU OF ENTOMOLOGY AND PLANT QUARANTINE Senator HAYDEN. Let us ask Mr. Rohwer first as to the work of the Bureau of Entomology and Plant Quarantine. How is your work undertaken? Is it seasonal in character?

Mr. ROHWER. Most of our work is seasonal in character, the seasons depending upon the type of project concerned. For instance, the season of the gypsy moth work is in the early spring for spraying, and in the winter and late fall when making inspections for egg clusters. Senator HAYDEN. And as to grasshoppers?

Mr. ROHWER. We haven't handled grasshoppers as a Federal project under W. P. A. funds at all The W. P. A. funds on grasshoppers have been handled entirely as State projects.

The work on Dutch elm disease control, which you mentioned, is seasonal to a considerable extent. We reach our highest peaks during the summer period.

Senator HAYDEN. When do you have the most W. P. A. workers? Mr. ROHWER. In July, August, and early September.

Senator HAYDEN. And what is the peak?

Mr. ROHWER. The peak for the last year occurred with more than 7,000 men. We had under employment on March 31 this year a little over 5,000 men.

Senator HAYDEN. This year?

Mr. ROHWER. This year.

Senator TAYDEN. This number would gradually increase, under normal conditions, to 7,000?

Mr. ROHWER. Based on preceding years, it would increase.

Senator HAYDEN. These are all men certified as eligible for employment under W. P. A.?

Mr. ROHWER. Yes, sir.

Senator HAYDEN. If not employed by the Bureau of Entomology and Plant Quarantine, they would have to be employed on some other project?

Mr. ROHWER. That is my understanding of it; yes sir.

QUESTION AS TO TRANSFERRING WORK TO STATE PROJECTS

Senator HAYDEN. What I am thinking about is this: That to transfer this work from the W. P. A., the way it has been done, over to State projects, as suggested, there will have to be funds provided somewhere, and where are you going to find the money?

Mr. ROHWER. If transferred over to State projects, the whole procedure of operation would be different. We would operate on State projects and within State lines, sponsored with State funds, with such augmentation as we would be able to give under our regular appropriation. To undertake that transfer at this season of the year activities conducted as Federal projects, would be most upsetting and would undoubtedly lose a great deal of work and, correspondingly, a great deal of employment. It would be impossible to make the adjustment on short notice.

Senator HAYDEN. Your notice is between now and the 1st of July? Mr. ROHWER. Yes.

Senator HAYDEN. That is all the notice you have. It would be possible, however-and I am not saying it is practicable-but it would be possible to transfer each of these projects over to a State project, provided the State public works administrator were willing to do just exactly what you are doing now. But if for any reason