Hon. JOHN LESINSKI,

Chairman, Committee on Invalid Pensions,

VETERANS' ADMINISTRATION,

Washington, May 3, 1939.

House of Representatives, Washington, D. C.

MY DEAR MR. LESINSKI: This is with further reference to your letter of April 26, 1939, requesting a report on H. R. 5977 (76th Cong.), a bill to provide pensions to members of the Regular Army, Navy, Marine Corps, and Coast Guard who become disabled by reason of their service therein, equivalent to 90 percent of the compensation payable to war veterans for similar service-connected disabilities, and for other purposes.

This bill is identical with S. 522 (76th Cong.), on which a report as follows was furnished the chairman, Committee on Military Affairs, United States Senate, under date of March 30, 1939:

"The purpose of this proposed legislation as indicated by the title of the bill is to provide pensions for members of the Regular Army, Navy, Marine Corps, and Coast Guard suffering with disabilities incurred in service other than during a period of war, at rates equivalent to 90 percent of those applicable to war veterans for similar service connected disabilities under the provisions of part I of Veterans Regulation No. 1 (a), as amended.

"Prior to the enactment of Public, No. 2 (73d Cong.) March 20, 1933, the general pension law (act of July 14, 1862, as amended) was the legislation providing pensions for service-connected disability or death whether incurred in time of war or at any other time. The general law provided monthly pension, except for certain permanent specific disabilities, in amounts ranging from $6 to $30 for total disability, dependent upon rank, except that as between $8 and $18 per month partial disabilities could be rated and paid regardless of rank. The permanent specific statutory rates were applicable to such disabilities as amputations of a hand or foot, for which disabilities monthly pensions of $80 were provided, and for other specific losses as high as $125 per month was provided. Although the laws provided higher rates for such conditions, the rate for total disability from organic disease, in the absence of helplessness, was pensionable at only $30 per month. The rate of $30 for total disability was payable regardless of rank.

Section 17 of title I, Public No. 2 (73d Cong.), March 20, 1933, repealed all public laws granting pensions to veterans and the dependents of veterans of the Spanish-American War, including the Boxer Rebellion and Philippine Insurrection, and the World War, and to the former members of the military or naval service except so far as they relate to persons who served prior to the Spanish-American War and to the dependents of such persons. In other words, Public No. 2 did not repeal or amend the general pension law in its application to veterans and the dependents of the veterans who served prior to April 21, 1898, but it repealed all laws granting pension to persons who served on and after April 21, 1898, and their dependents.

The veterans regulations promulgated by the President pursuant to Public No. 2 were designed to equalize as far as possible, benefits payable for disability or death incurred in active military or naval service and to divide them into two groups, i. e., wartime and peacetime, the underlying theory being that because of the greater hazard, and because in times of war men were summarily detached from their usual pursuits, a larger amount should be paid where death or disability was incurred in war service. Under the prior laws persons who served during peacetime and who were suffering from disabilities incurred during such service were in some instances paid pension far in excess of the amount paid to World War veterans for similar disabilities, and in some instances far in excess of the rate of pay for active-duty service. As to persons whose service was in the Regular Establishment other than in wartime, the first regulation promulgated by the President eliminated rank as a factor and provided monthly disability pension rates ranging from $6 for partial disability to $30 for total disability with rates for certain specific disabilities up to $125, graduated on the basis of severity. The President by subsequent regulation and as the result of studies conducted by the Veterans' Administration, at the President's direction, raised by 50 percent the rate for total disability to $45 per month and comparable raises were provided for lesser degrees of disability. Presidential regulation also provided that any veteran of the Regular Establishment or the dependents of any such veteran entitled to pension on account of disability or death resulting from an injury

received in line of duty in actual combat in a military expedition or military Occupation should receive the rate of pension provided for wartime service. Further, the regulations provided for the combination of ratings and for the payment of pensions at wartime rates to those veterans who had both wartime and peacetime service and who suffered disability in line of duty in each period of service.

The matter of pensions to veterans of the Regular Establishment continued to receive careful study during the period in which the President had authority to promulgate veterans regulations under Public, No. 2 (73d Cong.). Subsequent to that time the study was enlarged in scope to include all monetary benefits granted this group, including retirement privileges, as well as other benefits.

It was determined by the Veterans' Administration to refer pertinent data to the Secretary of War, Secretary of the Navy, and the Commandant, Coast Guard, requesting report on any recommendations they desired to make. Upon receipt of these reports, they were made a part of the basic study of the whole problem and following a careful consideration of the matter it was concluded that possible relief in some cases, particularly certain specific disabilities, was indicated following the policy adopted by the Congress in connection with wartime cases subsequent to the enactment of Public, No. 2 (73d Cong.). With this in mind, information was furnished the Congress resulting in the enactment of Public, No. 788 (74th Cong.), June 24, 1936, “An act to increase the pension to certain veterans of the Regular Establishment on the rolls March 19, 1933."

Public No. 788 did not distrub the existing criteria of eligibility for pension under part II of Veterans Regulation No. 1 (a), as amended, but following the principle invoked by the Congress in legislation subsequent to Public, No. 2 (73d Cong.), provided a protected award for those cases on the rolls on March 19, 1933, and entitled to peacetime service connected pension under the existing regulation, limiting the reduction of benefits to 25 percent. A further limitation was included providing that the protected award shall in no event exceed 75 percent of the wartime rate for similar disability under part I of Veterans' Regulation No. 1 (a), as amended.

The study of the effects of the veterans regulations and Public, No. 788 (74th Cong.), was continued with the resulting conclusion, considering all factors, that a total disability rate of 60 percent of the wartime rate under part I of Veterans Regulation No. 1 (a), as amended, can be justified upon practicable and scientific consideration. Such a total rate would provide a monthly pension of $60, or double the rate payable under the general pension law in effect on March 19, 1933. It would increase the existing monthly rate of $45 by 33% percent. Partial disabilities would, of course, be rated on the basis that the disability bears to the total rate, Specific injuries for which such rates have been provided would be pensionable on the basis of 60 percent of the wartime rate for the same injuries. It is estimated that such an increase in the rates would cost approximately $1,860,000 for the fiscal year 1940, providing increased pensions for approximately 19,000 veterans of the Regular Establishment.

Under the bill as drafted, providing rates equivalent to 90 percent of those applicable to war veterans, it is estimated that 33,100 veterans would receive increases for the fiscal year 1940 at a cost of approximately $6,434,000.

There is enclosed a copy of the hearings before the Committee on Pensions, House of Representatives (75th Cong., 3d sess.), on H. R. 8948, "A bill to liberalize the laws providing pensions for veterans and the dependents of veterans of the Regular Establishment for disabilities or deaths incurred or aggravated in line of duty other than in wartime." The hearings contain the report of June 4, 1938, of the Veterans' Administration, addressed to the chairman, Committee on Pensions, House of Representatives (pp. 88-92), which report was unfavorable to the rates proposed by the bill for veterans of the Regular Establishment, 80 percent of the highest amount payable to World War veterans suffering with similar service-connected disabilities, but indicated that legislation for such veterans providing pensions at 60 percent of the wartime rates, as provided by part I of Veterans Regulation No. 1 (a), as amended, would be in accord with the program of the President, provided that enactment thereof were deferred until the first session of the Seventysixth Congress. The hearings also contain the report of June 4, 1938, of the Veterans' Administration, addressed to the chairman, Committee on Military

Affairs, United States Senate (pp. 97-101), on S. 3503. Further, there is included in the hearings the testimony of the Administrator of Veterans' Affairs, supplemented by a detailed statement pertaining to the study of benefits provided for the Regular Establishment in connection with which the War and Navy Departments and the United States Coast Guard cooperated. For the foregoing reasons the Veterans' Administration does not recommend favorable action on the bill, but it would favor the enactment of legislation increasing the rates of pension for disability incurred in the service other than in wartime subsequent to April 21, 1898, to 60 percent of the rates for disability incurred in wartime service under part I of Veterans Regulation No. 1 (a), as amended.

Advice has been received from the Acting Director, Bureau of the Budget, that there would be no objection by that Office to the presentation of this report to your Committee.

Very truly yours,

FRANK T. HINES, Administrator.

The CHAIRMAN. We will now consider S. 522, and for the purposes of the record I will insert a copy of S. 522 and the Senate Report No. 414 at this point.

[S. 522, 76th Cong., 1st sess. Report No. 414]

A BILL To provide pensions to members of the Regular Army, Navy, Marine Corps, and Coast Guard who become disabled by reason of their service therein, equivalent to 90 per centum of the compensation payable to war veterans for similar service-connected disabilities, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That effective on the 1st day of the month following the month in which this Act is enacted, paragraph II of part II of Veterans Regulation Numbered 1 (a), as amended, is amended to read as follows:

"II. For the purposes of part II, paragraph I (a) hereof, if the disability results from injury or disease

"(a) If and while the disability is rated 10 per centum the monthly pension shall be $7.50.

"(b) If and while the disability is rated 20 per centum the monthly pension shall be $15.

"(c) If and while the disability is rated 30 per centum the monthly pension shall be $22.50.

"(d) If and while the disability is rated 40 per centum the monthly pension shall be $30.

"(e) If and while the disability is rated 50 per centum the monthly pension shall be $37.50.

"(f) If and while the disability is rated 60 per centum the monthly pension shall be $45.

"(g) If and while the disability is rated 70 per centum the monthly pension shall be $52.50.

"(h) If and while the disability is rated 80 per centum the monthly pension shall be $60.

"(i) If and while the disability is rated 90 per centum the monthly pension shall be $67.50.

"(j) If and while the disability is rated as total the monthly pension shall be $75.

"(k) If the disabled person, as the result of service-incurred disability, has suffered the anatomical loss or the loss of the use of only one foot, or one hand, or one eye, the rate of pension provided in part II, paragraph II, (a) to (j), shall be increased by $18.75 per month.

"(1) If the disabled person, as the result of service-incurred disability, has suffered the anatomical loss or loss of use of both hands, or of both feet, or of one hand and one foot, or is so helpless as to be in need of regular aid and attendance, the monthly pension shall be $112.50.

"(m) If the disabled person, as the result of service-incurred disability, has suffered the anatomical loss or loss of use of both hands and one foot, or of both

feet and one hand, or if the disabled person, as the result of service-incurred disability, is blind in both eyes, having only light perception, the monthly pension shall be $131.25.

"(n) If the disabled person, as the result of service-incurred disability, is blind in both eyes, having only light perception, and has suffered the anatomical loss or loss of use of one hand or of one foot, the monthly pension shall be $150. "(o) If the disabled person, as the result of service-incurred disability, has suffered the anatomical loss or loss of use as provided in subparagraphs (1) to (n), inclusive, of part II, paragraph II, of this regulation, and/or blindness in both eyes, having only light perception, which conditions under subparagraphs (1) to (n), inclusive, entitle him to two or more of the rates provided in those subparagraphs, no specified condition being considered twice in the determination, the monthly pension shall be $187.50.'

Amend the title so as to read: "A bill to provide pensions to members of the Regular Army, Navy, Marine Corps, and Coast Guard who become disabled by reason of their service therein, equivalent to 75 per centum of the compensation payable to war veterans for similar service-connected disabilities, and for other purposes."

[S. Rept. No. 414, 76th Cong., 1st sess.]

The Committee on Military Affairs, to whom was referred the bill (S. 522) to provide pensions to members of the Regular Army, Navy, Marine Corps, and Coast Guard who become disabled by reason of their service therein, equivalent to 90 percent of the compensation payable to war veterans for similar service-connected disabilities, and for other purposes, having considered the same, report favorably thereon with a recommendation that it do pass, amended as hereinafter indicated.

S. 522 represents in substance part of section 2 of S. 3503, which passed the Senate June 7, 1938, shortly before the last Congress adjourned. It purposes to increase pensions under paragraph II, part II, of Veterans Regulation No. 1 (a), as amended, for disabilities incurred in or aggravated by active military or naval service other than in time of war, to rates equivalent to 90 percent of the compensation payable to war veterans for similar disabilities.

The act of March 20, 1933 (Public, No. 2, 73d Cong.), repealed all public laws granting pensions to war veterans, their dependents, and former members of the military or naval service except those (and their dependents) who served prior to the Spanish-American War. It further provided for payment of pensions to persons concerning whom the pension laws were repealed in accordance with regulations of the President. Veteran regulations first promulgated by the President pursuant to Public, No. 2, established pensions for totally disabled peacetime veterans at one-third the rate provided for similarly disabled war veterans, with roughly comparable gradations for lesser degrees of disability also covered by S. 522. Monthly rates for peacetime veterans ranged from $6 for partial disability to $30 for total disability and rates for certain specific disabilities were graduated up to $125. Corresponding rates for wartime veterans ranged from $9 to $90, and specific disability rates were graduated from $25 to $250. By subsequent regulations monthly rates for peacetime veterans were raised to $45 for total disability, ranging down to $6 for partial disability, and war veterans' monthly pensions were raised to $100 for total disability, scaling down to $10 for partial disability.

Under the act of June 24, 1936 (Public, No. 788, 74th Cong.), peacetime veterans entitled to pension under part II of Veterans Regulation No. 1 (a) and on the rolls on March 19, 1933, were awarded pension at 75 percent of the compensation being paid to them on March 19, 1933, prior to approval of Public, No. 2. Reduction or increase of benefits since the latter date was limited to 25 percent and in no event could the protected award exceed 75 percent of the wartime rate for similar disability.

The Administrator of Veterans' Affairs in his report on S. 522 states the Veterans' Administration would favor enactment of legislation increasing rates of pension for disability incurred in service other than wartime, subsequent to April 21, 1898, to 60 percent of the rates for disability incurred in wartime service under part I of Veterans Regulation No. 1 (a) as amended. He further indicates the Bureau of the Budget interposes no objection to such legislation. Reports on the bill from the Navy and Treasury Departments are in agreement with that from the Veterans' Administration.

The annual report of the Administrator of Veterans' Affairs for 1938 shows 13,180 disabled peacetime veterans were receiving an average annual pension of $166.14 in 1910, or an average monthly compensation of $13.85. In 1932, 33,062 disabled Regular veterans were receiving an average annual payment of $241.41, or $20.12 monthly, and in 1938 33,062 disabled Regulars were receiving an average annual pension of $264.85, or $22.07 monthly. Thus disabled peacetime veterans are today receiving an average monthly payment only $1.95 in excess of that received in 1932 and but $8.22 more than that received in 1910. Disabled peacetime veterans now receive only from 30 to 75 percent of the amounts payable to war veterans for similar service-connected disabilities. Disabled Regulars receiving compensation on March 19, 1933, are allowed 75 percent of the compensation they received before the economy legislation of 1933, but in no case may they receive more than 75 percent of war veterans' pensions for similar disabilities.

While compensation rates for disabled peacetime veterans equal to 90 percent of the sums allowed war veterans for similar disabilities are desirable, your committee believes adoption of a 75-percent basis will not only meet approval of all interests and executive agencies concerned but also will end much lack of uniformity and inequity in existing pension laws relating to peacetime veterans. Your committee therefore recommend that the title be amended to read "equivalent to 75 per centum" and that the figures in lines 2, 4, 6, 8, 10, 12, 14, 16, 18, 20, 25, on page 2, and in lines 5, 11, 16, and 25, on page 3, be replaced by the following figures, respectively: $7.50, $15, $22.50, $30, $37.50, $45, $52.50, $60, $67.50, $75, $81.75, $112.50, $131.25, $150, and $187.50.

Under the bill as amended, providing rates equivalent to 75 percent of those applicable to war veterans, it is estimated that 24,147 veterans would receive increases for the fiscal year 1940, at a cost of approximately $3,565,548.

Communication from the Veterans' Administration under date of March 30, 1939, follows:

Hon. MORRIS SHEPPARD,

Chairman, Committee on Military Affairs,

United States Senate, Washington, D. C.

MY DEAR SENATOR SHEPPARD: This is with further reference to your letter of January 23, 1939, requesting a report on S. 522, Seventy-sixth Congress, a bill to provide pensions to members of the Regular Army, Navy, Marine Corps, and Coast Guard who become disabled by reason of their service therein, equivalent to 90 percent of the compensation payable to war veterans for similar serviceconnected disabilities, and for other purposes.

The purpose of this proposed legislation, as indicated by the title of the bill, is to provide pensions for members of the Regular Army, Navy, Marine Corps, and Coast Guard suffering with disabilities incurred in service other than during a period of war, at rates equivalent to 90 percent of those applicable to war veterans for similar service-connected disabilities under the provisions of part I of Veterans' Regulation No. 1 (a), as amended.

Prior to the enactment of Public, No. 2, Seventy-third Congress, March 20, 1933, the general pension law (act of July 14, 1862, as amended) was the legislation providing pensions for service-connected disability or death whether incurred in time of war or at any other time. The general law provided monthly pension, except for certain permanent specific disabilities, in amounts ranging from $6 to $30 for total disability, dependent upon rank, except that as between $8 and $18 per month partial disabilities could be rated and paid regardless of rank. The permanent specific statutory rates were applicable to such disabilities as amputations of a hand or foot, for which disabilities monthly pensions of $80 were provided, and for other specific losses as high as $125 per month was provided. Although the laws provided higher rates for such conditions, the rate for total disability from organic disease, in the absence of helplessness, was pensionable at only $30 per month. The rate of $30 for total disability was payable regardless of rank.

Section 17 of title I, Public, No. 2, Seventy-third Congress, March 20, 1933, repealed all public laws granting pensions to veterans and the dependents of veterans of the Spanish-American War, including the Boxer Rebellion and Philippine Insurrection, and the World War, and to the former members of the military or naval service except so far as they relate to persons who served prior to the Spanish-American War and to the dependents of such persons.

In