Exhibit 5 classifies the pensioners and amounts paid by the States, Territories, and other outlying possessions, and foreign countries; and Exhibits 6 and 7 give the numbers of pensioners, by the various classes and rates, under the general pension laws and special acts of Congress, respectively, the rates of less than $6 per month representing allowances from the Navy pension fund under section 4757, Revised Statutes, United States.

Exhibit 8 presents the pensioners on the roll at the close of the year by the various classes in numbers as subdivided by grants under the general provisions of the pension laws and by special acts, with the annual value of each number according to such subdivision; also the average annual value of each pension with all classes combined and under a further general classification by laws and wars. The corresponding table for the preceding fiscal year, 1912, is here given for purposes of comparison:

Number of pensioners in each class under the general pension laws and "special acts" of Congress, together with the annual value of each on the roll at the close of the fiscal year ended June 30, 1912.

DISBURSING OFFICE AND PAYMENT OF PENSIONS WITHOUT SEPARATE VOUCHERS.

An important part of the bureau's operations during the year was in carrying out the provisions of the appropriation act of August 17, 1912 (37 Stats., 311) for the establishment in the bureau of a disbursing office for the payment of pensions, to take the place of the 18 pension agencies, and the adoption of a system of pension payments by checks drawn without separate vouchers or receipts, substantially as recommended in the report of the commissioner for the fiscal year ended June 30, 1911.

Under the terms of the law this system of payment without vouchers was to be carried into effect not later than January 1, 1913, and the disbursing office was to be in operation, by transfer and consolidation of the clerical force, records, and equipment of the pension agencies, on February 1, 1913.

The 18 pension agencies-one having quarters in the bureau building and the remaining 17 being stationed in leading cities elsewhere throughout the country-were arranged in three groups of 6 agencies each, with quarterly payment periods beginning on the 4th day of January, April, July, and October for the first group, on the 4th day of February, May, August, and November for the second group, and on the 4th day of March, June, September, and December for the third group, pursuant to the provisions of the act of March 3, 1891 (26 Stats., 1082).

The problem before the bureau, therefore, was to carry out the important changes so prescribed, each involving the entire pensionpaying service, concurrently, and without retarding payments according to the periods fixed by law, as above noted, and its presentation in the midst of adjudication of the half million of claims filed under the act of May 11, 1912, with an average daily output of nearly 1,900 new certificates to be enrolled, computed, and paid, for periods involving fractions of quarters, added greatly to its difficulties.

The plan decided upon and carried out without material variation was to inaugurate the system of payment without vouchers with the December, 1912, payment of the third group of agencies, the second group to be on the way to Washington during this payment, and after completion of its November, 1912, payment, the first group to be the next to make payment under the new system, and the third group to come in during the course of this payment, leaving only the first group to be brought in after completion of its January, 1913, payment at the close of the month, and the second group to be then in position to make its first payment without vouchers, beginning February 4, 1913, as a part of the disbursing office under the direction of a disbursing clerk to take charge on February 1, 1913.

The pensioners of each group were notified of the changes to be made with the checks mailed them for the preceding quarter, and it is due the officials immediately in charge to say that, owing chiefly to their care and foresight, the work of removal and consolidation, involving the packing and shipment of tons of valuable records, machinery, and other equipment, was carried out without appreciable loss or damage, and the system of payment dispensing with separate vouchers was inaugurated under departmental direction, without interruption or material delay in the quarterly and other payments, nearly one month in advance of the date set. It is further to be noted that this latter change appears to have met with general approval thus far, since it has received the commendation of many pensioners and no formal complaint or criticism of consequence, such as might be taken to question its merits as a system, has been offered. The cost of the work, including new equipment for the disbursing office in the way of modern office appliances, was kept well within the amount that would have been expended for clerk hire under a continuance of the pension agencies, as the services of some 50 clerks were dispensed with by the consolidation and $22,000 of the amount appropriated for clerk hire by the act of August 17, 1912, was set aside by provisions of said act and the act of March 3, 1913 (Public, No. 425), to meet the expenses incident to consolidation of the agencies and purchase and repair of furniture, filing cabinets, adding machines, addressing machines, typewriters, check-signing machines, and other labor-saving devices for the use of the disbursing office. The expenditures for such purposes amounted on June 30, 1913, to $11,811.58.

Exhibit 9 is a statement of pension certificates issued during the year. The following summary shows the number by classes:

The classes may be defined as follows:

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

Additionals. Issues under the 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 acts of February 6, 1907, and May 11, 1912, in lieu of pension under other laws.

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

Renewals.-Issues to renew pension from a date 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 number of pension certificates issued in the last 10 years is as follows:

Pension certificates issued during the last 10 years.

The number of certificates issued last year was the largest issued in any year in the history of the bureau, exceeding the issue of 1908 by 114,946. The increase in certificates was due to the large number of claims adjudicated under the act of May 11, 1912.

In addition to pension certificates, as above stated, there were also made during the year 4,550 reissues in lieu of certificates lost or destroyed, and allowances of accrued pension made in 12,794 cases, being issues for payment, in cases of deceased pensioners, from date of last payment to date of death.

Exhibit 10 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 each class based upon disabilities incurred or service rendered in each of the wars and in the regular establishment.

The number of applications pending at the close of the year was 83,581, as against 422,464 pending at the beginning of the year, the decrease being due to the fact that almost all of the 406,048 claims filed in May and June, 1912, under the act of May 11, 1912, were adjudicated during the past year.

The following is a recapitulation of the pending files:

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

There were also pending at the close of the year 12 claims for military bounty-land warrants.

ACT OF FEBRUARY 6, 1907.

From the date of its approval to June 30, 1913, there were 604,107 certificates issued under the act of February 6, 1907; but of these, only 23,401 were original allowances, or pensions granted to persons never before on the roll.

This act has been superseded by the act of May 11, 1912, as all survivors of the Mexican War are granted $30 per month by the lastnamed act, and the rates provided by it for survivors of the Civil War exceed the rates under the former act.

ACT OF APRIL 19, 1908.

The second section of the act of April 19, 1908, grants pension at the rate of $12 per month to widows of persons who served 90 days or more in the Army or Navy of the United States during the Civil War, and who were honorably discharged, without regard to their pecuniary condition, if they were married prior to June 27, 1890.

The records show that prior to the close of the last fiscal year 99,070 certificates had been issued under this law.

While this is the number of certificates that have been issued under this act since its passage, the number of widow pensioners now borne on the roll thereunder is very much larger. As the first section of this act increased from $8 to $12 per month the pensions of all widows on the roll under the act of June 27, 1890, the names of all widows on the roll under that law were transferred to the roll under the act of April 19, 1908, immediately after its enactment.

Since 1908 no widow pensioners have been borne on the roll under the act of June 27, 1890.

ACT OF MAY 11, 1912.

This act grants pensions according to the length of service to persons who served 90 days or more in the military or naval service of the United States during the Civil War and were honorably discharged, who have reached certain ages, at rates as indicated in the following table:

It also grants pensions at the maximum rate, $30 per month, without regard to age or length of service, to persons who served in the military or naval service during the Civil War and received honorable discharges, and who were wounded in battle or in line of duty and are