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Rh expended in making them, and sound policy dictates that they should be continued. While the efforts made by those charged with the duty of detecting frauds already committed are generally successful, it is apparent that they are powerless, under the present system of establishing pension-claims, to prevent their commission.

The act of March 3, 1873, provided for the appointment of a "duly qualified surgeon as medical referee," and of such other "duly qualified surgeons (not exceeding four)" as assistants to such referee. This legislation supplied a want which had long existed in the administration of the office. Inasmuch as in a large proportion of claims for invalid pension the question of title thereto is purely of a medical character, it had been found necessary in past years to organize a medical division in the office, but no direct provision therefor was made by law until the passage of said act. That division is now organized upon a legal basis, and is in the charge of a chief whose official position is established by law. An accomplished surgeon, who had previously been in charge of the medical division, was appointed medical referee, and his four assistants were selected from among those of the clerical force of the office who, upon a competitive examination, conducted with reference to the special qualifications required, were found to be the most competent for such positions. The certificates of the examining surgeons of pensions constitute a very important feature of claims of invalids, inasmuch as they prescribe in a great measure the rates of pension allowed. In order to guard against an improper expenditure of the public money, on the one hand, and to insure justice to claimants on the other, it is essential that such certificates should be the result of the best medical judgment attainable, and that they should be analyzed and corrected by the office, so as to secure proper and uniform rating of pensions. The roster of examining surgeons is constantly undergoing changes with a view to greater efficiency, and its members have been thoroughly instructed in respect to their duties. An evidence of the efficiency with which the medical division has labored in this direction is shown by the fact that only about five per cent. of the certificates of examination are at present returned for correction to the surgeons making them, whereas two years ago about forty per cent. thereof was returned for that purpose. The improvement in the character of such certificates, and the careful and intelligent supervision of them by the medical division, has resulted in a more uniform and equitable adjudication of claims for invalid pension than has ever been attained hitherto in the practice of the office.

The Commissioner suggests that the law in relation to pensions of Indians be amended in certain particulars, so as to enable the office to do justice to a class of persons whose equitable claims upon the bounty of the Government have been long delayed.

Owing to recent modifications of the pension laws, which compelled the re-adjustment of an unusual number of claims, the work of the office