Statement About the Establishment of the Veterans' Administration.

THE PRESIDENT said:

"One of the most important steps taken in reorganization of the Federal Government was the legislation carrying out my recommendation for a consolidation of all veterans' agencies--that is, the Veterans' Bureau, an independent establishment, the Pensions Bureau from the Department of Interior, and the Soldiers' Home from the War Department.

"The bill places large authority in the hands of the President for the consolidation and reorganization of these bureaus under the title of the Veterans' Administration, with the appointment of a new head to be called Administrator of Veterans' Affairs.

"I have prepared the necessary Executive order in compliance with the authority under the act. It is proposed to continue the Veterans' Bureau for the present, also the Soldiers' Home and the Pensions Bureau, as separate divisions tinder the Veterans' Administration, but to transfer certain functions from one to the other so as to bring about economies and avoid overlaps. The transfer of functions will take place gradually and without disturbance to the administration.

"General [George H.] Wood will be continued as head of the Soldiers' Home. The Board of Managers will probably be constituted into an Advisory Board. The Pensions Bureau will be administered by an Acting Commissioner of Pensions for the present, the Veterans' Bureau by an Acting Director.

"I propose to appoint General [Frank T.] Hines as Administrator of Veterans' Affairs. General Hines has been offered a very important commercial position, but has agreed to remain on temporarily to give me the advantage of his wide experience in reorganization of the new setup.

"As I have said, we will be able to make important economies in administration of hospitalization and domiciliary questions and in the better handling of fiscal relations with veterans throughout the entire organization. The consolidated budget of these services for the present fiscal year amounts to approximately $800 million, so that the new establishment becomes one of the most important functions in the Government."

NOTE.: The Veterans' Administration was established as an independent agency by Executive Order 5398, of July 21, 1930, pursuant to Public, No. 536 (46 Stat. 1016) of July 3, 1930.