quently has had a crew working upon it consistently since its arrival. If advertising had been based upon detailed specifications and drawings with no incentive for turning out the finest possible type of airplane, it is fair to assume that proposals would have been received offering airplanes meeting only these detailed specifications and drawings and not including therein the engineering developments which have taken place since their issuance many months before.

The making of awards under this system on the basis of a tested article rather than on a "paper promise to perform " has an additional marked advantage. It enables the War Department to make contracts for quantity procurement with the knowledge that the manufacturer has actually demonstrated his ability to construct the finest available type of airplane, thereby eliminating the service test of an article which would be necessary if samples were not required. This factor alone reduces by at least a year the elapsed time between the inception of a design and delivery of airplanes in quantity to troops in the field and eliminates to a great extent past criticism to the effect that airplanes are becoming obsolescent by the time they reach the hands of tactical organizations.

The War Department is gratified at the response of the industry to the new procurement policy. On standard equipment competition has been keen and has resulted in a great deal of engineering work on the part of manufacturers. It is fair to say that progress in the art has been materially advanced, moving ahead according to the belief of some people intimately connected with the industry as much as 3 to 5 years. Furthermore, manufacturers are offering airplanes whose performance exceeds expectations. For instance, a basic training airplane now in service has a top speed of about 125 miles per hour while the basic trainers contracted for under the present system have a top speed of over 200 miles per hour. It appears reasonable to assume that no such advance would have been made at one stroke without the incentive of competition and the assurance that award would be made to the manufacturer offering the most advanced airplane.

When the present policy was originally adopted it was felt in some quarters that it would result in reducing the available sources of supply for the different types of airplanes. It was the opinion of the War Department that a competitive policy of procurement would give the opposite results, and I am gratified to be able to state that such is apparently the case. For example, 6 manufacturers offered basic training airplanes in the last competition while 4 manufacturers entered observation airplanes. I am informed that three manufacturers will offer bombardment airplanes in that competition, bids on which are to be opened the 22d of this month. Reliable press reports indicate that each of these 3 companies has built and has ready for test a bombardment airplane which will far exceed the performance of any bombardment plane now known, with speeds ranging over 200 miles per hour, cruising range exceeding 3,000 miles, and with greater useful loads than have heretofore been thought possible. Press reports further indicate that the Glenn L. Martin Co., which is now manufacturing a quantity of bombers for the Army, is offering a newly designed airplane in the competition under discussion. It is fair to assume that had procurement continued along the lines previously followed this company probably would have offered for this year's consideration the present type of Martin bomber with certain refinements and improvements rather than an airplane of completely new design and development.

In addition to quantity procurement competitions the War Department is holding design competitions on many types of aircraft. These competitions were opened May 6, 1935, and resulted in 17 manufacturers entering the competition for pursuit airplanes and an average of 3 manufacturers in each of the other competitions. The necessity of giving preference to the work involving contracts for quantity procurement because of present shortage of airplanes in the Army and the amount of detail work necessary to evaluate the design competition have precluded any final determinations to date. It is expected to announce the winners of the design competitions at an early date, and it is hoped that the designs submitted will be sufficiently advanced to warrant the manufacture of experimental airplanes in accordance therewith. I regret that the present procurement policy has not been in effect sufficiently long to enable me to furnish your committee more concrete information, but I feel certain that the progress and development outlined above are sufficient to enable you to conclude with me that the success of this policy is most promising

and that nothing should be placed in the way of continuing the present method for a sufficient period to determine definitely its net worth.

Sincerely yours,

General Headquarters Air Force.-One of the most important steps toward improved national defense that was taken by the War Department during the past fiscal year was the organization of the new General Headquarters Air Force. This force is composed of practically all of the combat elements of the Air Corps in continental United States, together with certain observation and serviceunits. The various elements of the force are at flying fields throughout the country, but are so organized as to permit their concentration at any point without delay. The commanding general of the General Headquarters Air Force is directly under the Chief of Staff in time of peace and of the commander in chief of the field forces in time of war. This force is highly mobile and possesses great striking power. It will be able to employ its mobility in such a way as to exert the maximum influence upon land defense, being ready to reinforce the Army on any front.

The elements of the General Headquarters Air Force have been grouped in three territorial subcommands or wings, with headquarters on the west coast, the east coast, and in the south central section of the country. Each wing is strategically well located, and at the same time is in a position to reinforce the other wings.

One important change in policy coincident with the organization of the General Headquarters Air Force is to relieve the Chief of the Air Corps of the responsibility for training, administration, and command of Air Corps units. The Chief of the Air Corps is thus enabled to give his undivided attention to procurement, technique, and aviation schools, which are of great importance in this highly

technical arm.

The Air Corps has lacked officers of rank appropriate to the command of many of its units, and because of the technical nature of the duties it was not feasible to transfer higher ranking officers to this arm. To remedy this situation, advantage was taken of authority contained in the act of 1926 and many Air Corps officers were given temporary promotions. With the enactment of the new promotion law Air Corps officers shared with other officers in permanent advancement, so that the number of temporary promotions required will be greatly reduced.

Shortly after the close of the fiscal year a bill authorizing the establishment of military air bases and depots in strategic locations became a law. This act establishes an important military air policy, but funds to carry out the purposes of the act are not available. In order that the object of the act may be attained, I recommend that sufficient funds to begin the acquisition of land and the construction of these bases be appropriated. A special board has been appointed to study and report on all available sites.

In developing its policy of air defense the War Department has been greatly aided by the report of the special committee headed by the Honorable Newton D. Baker, former Secretary of War, which was undoubtedly the best study ever made of our Army Air Corps. This committee reported its findings a year ago and practically all

of its recommendations are already being carried out, either through administrative or congressional action.

Army housing.-In the past 2 years considerable progress has been made in the Army housing program which was initiated several years ago. Several new Army posts, particularly at flying fields, have been constructed. At other stations flimsy, unsightly, insanitary buildings of temporary construction have been replaced by new, modern structures, specially designed for the purpose intended. A considerable portion of the funds used for continuing the Army housing program came from allocations made by the Public Works Administration. These funds not only provided the Army with needed facilities but also served materially to stimulate recovery of the building industry.

Army housing is considered a desirable public works project for many reasons, including the following:

1. It is widely distributed, since Army posts are scattered all over the United States.

2. Plans and specifications are ready, hence construction can be started promptly.

3. It furnishes employment for the building trades, which were hardest hit by the depression.

4. It helps the heavy goods industries and stimulates recovery. When the construction industry is revived the depression will be over.

5. It gives the Government full value for its money in the form of needed public improvements and results in a direct saving in a reduction in rentals and the elimination of losses from fire and other hazards.

6. Finally, it must be done some time, so why not do it now when it is so badly needed for the relief of unemployment and for hastening recovery?

Plans and detailed estimates have been prepared covering urgently needed Army construction, totaling approximately $120,000,000. Estimates have also been prepared covering the expenditure of about $137,000,000 for additional construction, reconditioning and repair work considered highly desirable at Army installations. A list of these projects has been submitted for consideration in connection with work relief allotments under recent congressional appropriation. Most of the funds thus far allotted to the Army from this fund have been for repairs and rehabilitation rather than for new construction.

The accomplishments in Army housing have been so beneficial to the Service and to the public, and have contributed so materially to general recovery, that I earnestly recommend that additional funds for the prosecution of the housing program be allotted as soon as possible, either from funds now available or from future appropria

tions.

NATIONAL GUARD

During the past year the National Guard continued to make satisfactory progress. On June 30, 1935, the strength of the National Guard was 13,370 officers, 201 warrant officers, and 172,244 enlisted men, approximately the same as for several years. The Army Appropriation Act for the fiscal year 1936 authorized an increase of 5,000 in the National Guard. While this will materially strengthen the Guard it is recommended that an additional 15,000 men be au

thorized to bring the total up to approximately 210,000. Service in the National Guard is popular, and no difficulty will be encountered in bringing it up to full authorized strength.

The larger tactical units of the National Guard are completely organized, and progressive training is given to keep the troops in readiness for active field service. If the additional strength recommended is authorized, the National Guard will be able to furnish for the national defense 18 infantry divisions, 4 cavalry divisions, and certain corps and army troops.

Great improvement in the equipment of the National Guard was accomplished during the year. Most of the light field artillery has been converted from animal-drawn to motor-drawn, and so modified as to be adapted to high road speeds. Field training camps have been reconditioned at a cost of $2,300,000, and additional funds have been made available for further camp improvement.

The motorization of most of the organizations of the National Guard has made it possible to widen the scope of field training and has provided convenient transportation to and from ranges and other training areas.

The National Guard has been greatly improved since it began to receive the Federal aid provided in the National Defense Act. The harmonious cooperation between the National Guard and the Regular Army is as commendable as it is necessary.

ORGANIZED RESERVES

In any major emergency the country will rely very largely on the officers commissioned in the Organized Reserves to lead our citizen armies. These officers, actuated by the highest patriotism, devote a great deal of time, and sometimes undergo considerable expense, to prepare themselves for the duties they may have to assume in war. Shortly after the World War the personnel of the Reserve Corps was drawn largely from those who had served as officers during the war. In recent years our new Reserve officers have come almost entirely from college graduates who have taken advanced Reserve Officers' Training Corps training. The country is fortunate in having these young men available in the Organized Reserves.

Inactive-duty training is provided in the various corps areas through correspondence courses and conferences conducted by Regular Army officers assigned to duty with the Reserves. This should be supplemented by frequent active-duty training. Due to lack of funds the number that could be given active military duty has been kept so low that many excellent Reserve officers have been able to receive this training only at intervals of 5 or 6 years. During the coming fiscal year it will be possible to give active-duty training to 20,000 Reserve officers. I recommend that hereafter funds be made available for active-duty training for 30,000 annually. This will make it possible to call approximately one-third of the Reserve officers classified as active to active duty for 2 weeks each year.

Since the organization of the Civilian Conservation Corps several thousand Reserve officers have been placed on active duty with the work companies. These officers have rendered excellent service in administering the affairs of these companies. This duty called for the exercise of initiative, leadership, and executive ability of a high order.

The Reserve officers and the country have profited greatly by this service. However, it should not be regarded as a satisfactory substitute for military training.

On June 30, 1935, there were 112,590 officers in the Organized Reserves, of whom 91,955 were classified as active. Nearly 9,300 Reserve officers were on duty with the Civilian Conservation Corps and 344 on extended active duty with the Air Corps.

At the beginning of the World War the Regular Army had about 6,000 officers. When the war ended there were some 250,000 officers in the Army of the United States. Shortage of trained officers was one of our greatest problems. Soldiers without officers are more useless than officers without soldiers, for trained officers can take men off the street and make soldiers of them, while soldiers without officers are little better than a mob. The success of an army depends upon having an adequate number of trained officers.

Our scheme of national defense contemplates securing the extr officers that will be needed in war time from the officers commissioned in the Organized Reserves, who are chiefly college Reserve Officers' Training Corps graduates. This is one of the basic and essential parts of our scheme of national defense. Those well-meaning but misguided persons who agitate against military training in colleges are therefore seeking to undermine the Nation's ability to defend itself.

The propaganda against military training in colleges is based upon the fallacy that such training instills a spirit of militarism in the youth of America. In my opinion, any candid, unbiased observer will reach the conclusion that this is a sheer assumption which has no foundation in fact. It is no rash assertion to say that Reserve Officers' Training Corps graduates are no more jingoistic or truculent in international affairs than those who have not had military training. But they are better prepared to serve their country in time of national peril.

We must assume that all citizens, except a few who despise our form of government and desire its overthrow, think the United States is worth fighting for. If they have that patriotic feeling in their hearts they should not permit themselves to be misled by seditious propaganda, but should willingly and loyally support every agency created by the National Defense Act, which sets up the best organization for a citizen army that has ever been conceived. The provisions of that act are entirely democratic and are consistent with the aspirations of the most idealistic lover of peace.

While the Army at present has a fairly large reserve of officers available for an emergency, it is sadly deficient in an enlisted reserve. A reserve of enlisted men, and particularly noncommissioned officers, sufficiently large to bring existing Regular Army units to war strength at the outbreak of hostilities, would be of great benefit to national defense.

CIVILIAN CONSERVATION CORPS

While the Civilian Conservation Corps is in no sense a military organization, its entire personnel being made up of civilian laborers, the War Department is charged with many important functions in

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