He closed his career as commander of Third Corps Area and interim commander of the First United States Army, positions in which he supervised training exercises designed to prepare units for overseas service as the Army began to expand at the start of World War II.

[5] In 1898 he was commissioned for the Spanish–American War as a first lieutenant in the 3rd Alabama Volunteer Infantry, a unit of African American soldiers and white officers.

[7] Parsons remained in the United States Army after the war with Spain, receiving his commission as a second lieutenant in the 20th Infantry in 1899.

[11] In 1908 he received promotion to captain, and his assignments at this rank included command of Company F, 20th Infantry Regiment in Hawaii.

[14] In the years before World War I Parsons served as mustering officer at Camp Glenn near Morehead City, North Carolina, and then as an observer and advisor with the New York National Guard.

[19] The citation for his DSC reads: The President of the United States of America, authorized by Act of Congress, July 9, 1918, takes pleasure in presenting the Distinguished Service Cross to Colonel (Infantry) James Kelly Parsons, United States Army, for extraordinary heroism in action while serving with 39th Infantry Regiment, 4th Division, A.E.F., near Cuisy, France, 27 September 1918, to 11 October 1918.

On the following day he assumed command of the regiment and commanded it in successful attacks, refusing to be evacuated after being so severely gassed that he was unable to see.Service: Army Rank: Colonel Division: 4th Division, American Expeditionary Forces General Orders: War Department, General Orders No.

Colonel Parsons organized and commanded with great energy and ability the Embarkation Camp at St. Nazaire, France, and handled with conspicuous success the reception, care, and departure of the large number of officers and soldiers passing through that camp en route to the United States.

He demonstrated administrative abilities of a high order and performed services of great value to the American Expeditionary Forces.

The army did not agree with Parsons' recommendations, and continued to allow African Americans to serve only in segregated units, and with few opportunities for assignment to leadership positions.

Parsons had launched the project after identifying a need to replace the wool coat then in use with an outer garment that was lightweight, water repellent, and windproof, and could incorporate a liner for warmth during the winter.