address more envelopes in one day than could be addressed by 10 clerks by hand.

If it were possible to transact the business of all the agencies with the same degree of economy as that which obtains at the largest agencies, the saving in clerk hire would amount to $50,000 per

annum.

The amount paid out for contingent expenses in this city largely exceeds that of any other agency. This agency is required to pay postage on mail addressed to pensioners residing in foreign countries, which is charged to contingent expenses. This expense alone is about $400 per annum and does not obtain at any other agency. The largest item of the contingent expenses of this agency during the last fiscal year was due to a fire in the rooms occupied by the agency in the Pension Building, which occurred January 13, 1911. This fire destroyed the addressing machine, the filing cabinets, the desks, chairs, and other furniture in two of the rooms. It was necessary to replace the articles destroyed by the fire, and the expenditure therefor came out of the contingent fund or appropriation for stationery and other necessary expenses of the pension agencies.

The amount disbursed for fees of examining surgeons during the year was $158,414.20. The fees for the medical examinations held during the last quarter of the fiscal year could not be paid until after the close of the year and therefore do not appear in the table of disbursements. It is estimated that the total cost of medical examinations held during the fiscal year will amount to $206,768.33 after all the accounts shall have been paid.

The amount expended for Navy pensions was $5,392,485.31. This is an increase of $57,028.04 over the previous year.

The law provides that Navy pensions shall be paid from the income of the Navy pension fund, so far as the same shall be sufficient for that purpose. The income from this fund during the fiscal year 1911 was $387,159.22, a small fraction of the amount required for the payment of Navy pensions.

Interest on Navy pension fund and the amount paid for navy pensions each year for the past five years.

The amount disbursed for pensions from July 1, 1790, to June 30, 1865, was $96,445,444.23. The amounts disbursed each year since that date, the cost of administration, including the entire expenses of the bureau in the settlement of claims, the cost of the pension

agency service, and fees of examining surgeons, and the number of pensioners on the roll at the close of each fiscal year are shown in the following table:

Disbursements for pensions and for maintenance of pension system, 1866 to 1911.

It will be observed that the cost of administration in connection with the settlement of pension claims and the payment of pensions was $140,546.80 less during the last fiscal year than in the previous year. The cost was less in 1911 than in any year since 1882.

I wish especially to call attention to the appropriation for the maintenance of the pension system for the fiscal year ending June 30, 1912, as compared with that for 1909. The appropriation for 1909 provided for salaries in the Pension Bureau, $1,650,270; for salaries, per

diem and expenses of special examiners, $380,000; for fees of examining surgeons, $500,000; and for salaries, clerk hire, and other expenses of pension agencies $553,000, making a total of $3,083,270. The appropriation for 1912 provides for salaries in the Pension Bureau, $1,483,620; for salaries, per diem and expenses of special examiners, $273,500; for fees of examining surgeons, $200,000; for salaries, clerk hire, and other expenses of pension agencies, $486,500; and for a card index of the records of the bureau $10,000, making a total of $2,453,620, and a net reduction in expense of $629,650.

The number of pensioners on the roll is less than at any time since 1892. There has been a net decrease of more than 100,000 in the number in the last six years.

PENSIONS OF THE SEVERAL WARS AND OF THE PEACE

ESTABLISHMENT.

The amounts that have been paid for pensions to soldiers, sailors, and marines, their widows, minor children, and dependent relatives on account of military and naval service in the several wars and in the regular service since the foundation of the Government to June 30, 1911, are as follows:

War of the Revolution (estimate)...

War of 1812 (service pension).

Indian wars (service pension)..

War with Mexico (service pension)..

Civil War.............

War with Spain and insurrection in Philippine Islands..
Regular establishment....

Unclassified.....

Total disbursements for pensions.......

$70, 000, 000. 00

45, 853, 024. 19

11, 192, 205. 52

45, 279, 686. 83

3, 985, 719, 836. 93

34, 142, 976. 37 21, 705, 852. 33 16, 488, 147.99

4, 230, 381, 730. 16

In Exhibit 5 is shown the number of pensioners by classes on the rolls of each of the agencies June 30, 1911, and the total number of pensioners on the rolls of each agency June 30, 1910. It will be observed that there was a decrease in the number at each of the agencies, the greatest being 3,147 at the Topeka agency. The smallest decrease was 271 at the San Francisco agency.

In Exhibit 6 is shown the number of pensioners in each State and Territory of the United States, each insular possession, and each foreign country at the close of the fiscal year, and the amounts paid to pensioners during the year in each of the localities mentioned.

In Exhibit 7 is shown the number of pensioners of the various classes at each rate on the roll at the close of the year, except those pensioned by special acts of Congress, which are shown in Exhibit 8.

In Exhibit 9 is shown the total number of pensioners on the roll by classes under the provisions of the general pension laws and also those pensioned by special acts of Congress. The annual value of each class is also shown.

The total annual value of the pensions under the provisions of the general pension laws at the close of the year was $148,222,880.80, the total number of pensioners being 869,775.

The number of pensioners on the roll under special acts of Congress at the close of the year was 22,323, and the annual value of such pensions was $6,611,357.

The increase in the number of "special-act" pensioners during the year was 2,901, and the increase in the annual value of such pensions was $886,111.

The annual value of the pension roll is the amount which would be required to pay all the pensioners on the roll at the close of year for one year at the rates then existing, should no new names be added to the roll and none be dropped therefrom.

There was a decrease in the annual value of the pension roll of $3,498,154.02 during the last fiscal year.

The average annual value of each pension at the close of the year was $173.56, an increase of $1.66 per pensioner during the year.

Average value of each pension for the last five years.

Exhibit 10 is a statement of pension certificates issued during the year. The following summary shows the number of issues by classes:

The classes of certificates may be defined as follows:

1,490

173

92,336

Originals. Cases in which no pension has before been granted.
Increases.-Cases in which increased rates are granted.

Additionals.-Issues under act of June 27, 1890, in lieu of pension under the general law.

Reissues.-Issues to allow for additional disabilities under the general law, to correct errors in former issues, and to allow pension under the general law and under the act of February 6, 1907, in lieu of pension under the act of June 27, 1890.

Restorations.-Issues to restore to the roll from date of last pay

ment.

Renewals.-Issues to renew pension from a date when new title is

shown.

Supplementals.-Cases in which title exists under different laws and issue is made under one law for a period not covered by the other issue.

The total number of pension certificates issued in the last 10 years is as follows:

It will be noticed that the number of certificates issued was the least issued in any one of the last 10 years. The largest number was issued in 1908. During that year the most of the claims filed under the act of February 6, 1907, immediately after its passage, were adjudicated and since then there has been an annual falling off in the number of certificates issued.

Most of the soldiers of the Civil War are now pensioned under the act of February 6, 1907, and apply for increase only as they become 70 or 75 years of age.

In addition to pension certificates, as above stated, there were also issued during the year 2,769 duplicates of certificates lost or destroyed and allowances of accrued pension made in 20,618 cases, being issues made for payment, in cases of deceased pensioners, from date of last payment to date of death.

Exhibit 11 is a summary of the pending files of the bureau at the close of the year, showing the number of claims of each class on file as well as the number of claims of each class based upon disabilities incurred or service rendered in each of the wars and in the regular establishment.

The number of applications for pension of all kinds pending at the close of the year was 36,793, as against 47,295 pending at the beginning of the year.

In addition to the above there are a large number of claims in the abandoned files of the bureau. If the prosecution of any of these claims is resumed and material evidence is filed therein they will be restored to the pending files for adjudication.

The following is a recapitulation of the pending files: