wartime service is a top priority objective of the VFW for this year.

When our commander in chief, Ted C. Connell of Texas, appeared before this committee on February 7, he summed up his remarks concerning veterans receiving compensation by making this statement: "No one will ever accuse the Congress of being too generous for this group."

Many years have now elapsed since these veterans received their disabilities the Congress can never make them whole again--but the Congress can be generous in alleviating the hardships and burdens caused by these disabilities.

May I again therefore urge this subcommittee to favorably recommend legislation to increase the overall compensation rates and to make specific adjustments to the present rate structure in keeping with VFW nationally approved resolutions.

That concludes my prepared statement, Mr. Chairman, and I thank you very much.

Mr. DORN. Thank you, Mr. Stover. It is always a pleasure to have you come before us and you always make a fine statement. Thank you very much.

If there is nothing further to come before the committee, the committee will adjourn until 10 o'clock tomorrow morning.

(Whereupon, at 11:30 a.m., the committee recessed to reconvene at 10 o'clock, Wednesday, April 26, 1961.)

MISCELLANEOUS COMPENSATION LEGISLATION

WEDNESDAY, APRIL 26, 1961

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON COMPENSATION AND PENSIONS,

COMMITTEE ON VETERANS' AFFAIRS,

Washington, D.C. The subcommittee met at 10 a.m., pursuant to notice, in room 356, Old House Office Building, Hon. W. J. Bryan Dorn, chairman of the subcommittee, presiding.

Mr. DORN. The subcommittee will come to order.

Our first witness this morning is John R. Holden, national legislative director of AMVETS.

John, we are glad to have you with us. Just go right ahead with your statement.

STATEMENT OF JOHN R. HOLDEN, NATIONAL LEGISLATIVE DIRECTOR OF AMVETS

Mr. HOLDEN. Thank you, Mr. Chairman.

First of all I would like to say I am accompanied this morning by Mr. William Flaherty, the assistant service director of AMVETS.

Mr. Chairman and members of the committee, we of AMVETS appreciate this opportunity to present our views on certain matters relating to the rates of compensation for service-connected disabilities and death which are deserving of the highest priority of attention in the overall structure of veterans benefits.

One of the most pressing problems confronting this committee, in our judgment, is how best and most equitably the compensation dollar can be distributed. In attempting to solve this problem, we believe that priority attention should be directed to the needs of the seriously disabled.

Approximately 4 years ago, delegates to AMVETS National Convention adopted a resolution that has been reiterated each year since, calling upon the Congress and the Veterans' Administration to initiate a study of the special needs of the seriously disabled service-connected veteran with a view to establishing a more adequate system of compensation payments for this group. We are pleased to note that such a study by the Veterans' Administration in coordination with the staff of this committee has been in progress for some time.

This committee has recognized the special needs of the seriously disabled from time to time by reporting appropriate legislation. Public Law 86-663, the so-called housebound bill, authorizing a new statutory rate of compensation for totally disabled veterans who are permanently housebound, is a notable example.

Even more substantial progress can be made in meeting the needs of the seriously disabled by devoting immediate attention to the

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effect of disabling conditions upon life expectancy. Here is an area that offers the opportunity to provide additional compensation for those disabilities that have materially reduced the expected lifespan. of the individual. We, of course, recognize that the comprehensive structure of survivor benefits presently existing is, in part, designed to compensate survivors for the loss of the disabled veteran, but as the Bradley Commission pointed out

A shortened life expectancy is a personal loss to the individual as well as a loss to the survivors, so that the greater value of the survivor benefits should not be considered as being a complete offset.

The Bradley Commission, not particularly noted for its generous treatment of the veterans' benefit structure, also said

Shortened life expectancy due to disability or impairment of physical vitality may result in loss of earning capacity. It is appropriate, therefore, to reflect in the compensation scale some allowance for reduced longevity among disabled veterans.

The conversion of years of life to compensation dollars is a difficult task. Equally difficult is the matter of determining which disabilities should be compensated in recognition of shortening of life. We believe that the continuing study previously mentioned has progressed far enough to permit the consideration of legislation to authorizing additional compensation for certain seriously disabled veterans.

H.R. 865, in the judgment of AMVETS, offers a step in the right direction. This measure, however, limits the payment of additional compensation for loss of life expectancy to certain disease entities only. Chairman Teague, at the request of AMVETS yesterday introduced a bill, H.R. 6638, sections 2 and 3 of which is similar to H.R. 865 except that it authorizes the payment of additional compensation for injury as well as disease provided it results in at least a material loss of life expectancy. A copy of the bill I believe is before the committee.

Mr. DORN. That is correct. I appreciate that.

Mr. HOLDEN. Thank you, sir.

Both bills authorize additional compensation in amounts ranging from $150 to $50 for certain disabilities that experience has proved will shorten the lifespan. Because of the fact that continued research and added experience will probably uncover other disabilities that should be included, both bills contain a provision authorizing the Administrator of Veterans' Affairs to add diseases or disabilities to those listed.

In testifying before the Committee on Veterans' Affairs recently, Harold Russell, AMVETS National Commander said,

It is the feeling of AMVETS that current needs dictate that less emphasis be placed on the so-called scattergun approach to compensation, and more emphasis on the "rifle shot."

He went on to say

By that I mean that the greatest part of the compensation dollar should be distributed in a manner that recognizes factors other than the immediate degree of disability, such as the loss of life expectancy.

'It is the view of AMVETS that the measures we have discussed are in consonance with this concept. We respectfully urge that you report a bill that will provide additional compensation for those seriously disabled veterans who can expect a shortened life because of their service-connected disability.

The basic purpose of disability compensation is, of course, economic maintenance. It is essential, therefore, that the scale of compensation payments bear some relationship to the cost of living. În the years that have elapsed since the last adjustment in the basic rates of compensation, the cost of living as measured by the Consumers Price Index has increased almost 51⁄2 percent. Most economists predict a further rise. In recognition of the already increased cost of living coupled with its continuing rise, AMVETS recommend a 7 percent across-the-board increase in the rates of compensation for serviceconnected disability. Section 1 of the 6638 bill introduced at our request by Mr. Teague would accomplish this purpose.

We note that a number of the bills pending before this subcommittee would increase payments to survivors of those veterans whose death resulted from service. We hope that the committee will report a measure granting an increase to this class of beneficiary. Dependent parents, in particular, are deserving of consideration. The dependent parent's compensation, it must be remembered, is based upon death of a son in service or as the result of a service-connected disability.

Despite this fact, a strict test of financial need must be met before benefits are awarded. If we compare the tests of need or income limits necessary for parents to qualify for compensation payments with the tests of need or income limits necessary for veterans and widows to qualify for non-service-connected pension, the gross inequity is readily apparent.

For example, a veteran and his wife or a widow with one child may have outside income up to $3,000 and still qualify for non-serviceconnected pension payments of $45 and $40 respectively.

On the other hand, the parents of a son killed in action must have outside income of less than $2,400 to qualify for $10 each per month. Income in excess of $2,400 will disqualify the parents from receiving payments. Where only one parent is involved, the comparison with a single veteran or widow without dependents is equally unfavorable We fail to see any equitable reason for dependent parents in serviceconnected death cases to be subjected to more stringent tests of need than veterans and widows in non-service-connected pension cases.

We have set forth below a suggested table of revised income limits for dependent parents that will to some extent correct the disparity.

You will note, Mr. Chairman, that the columns on the left are existing law. A single parent can earn up to $750 annually and qualify for maximum payments of $75 monthly. The monthly payments diminish, of course, as income increases. We propose in each category three income brackets rather than five. In the second category, the right-hand column, captioned "Two Parents," the income limits proposed are exactly the same as the income limit for veterans or widows with dependents in the non-service-connected pension program. We have proposed no increase in the rates, although some parents will receive an increase because of the liberalized income limits.

We respectfully urge, Mr. Chairman, that you and the members of your subcommittee give serious consideration to correcting this inequity. In conclusion, I want to express AMVETS appreciation to this committee for devoting itself to this most important matter of providing an adequate compensation structure for the Nation's disabled veterans and their survivors.

Mr. DORN. Any questions?

Mr. FINO. I have no questions except I want to say it is also a pleasure to see Mr. Holden, sir. He does a splendid job for his organization.

Mr. HOLDEN. Thank you, Mr. Fino.

Mr. DORN. Thank you, Mr. Holden. We are also glad to see you. Mr. HOLDEN. Thank you.

Mr. DORN. Our next witness is Adm. Harold C. Train, Military Survivors, Inc.

Admiral, we are glad to have you with us. I think that you have a prepared statement.

STATEMENT OF REAR ADM. HAROLD C. TRAIN, USN, RETIRED, MILITARY SURVIVORS, INC.

Admiral TRAIN. First I would like to thank the committee for hearing me and hearing me earlier because I have to be back in the office by 12 o'clock.

Mr. Chairman, members of the Subcommittee on Veterans Affairs, I am Rear Adm. Harold C. Train, USN, retired, former Director of Naval Intelligence and a member of the Board of Directors of Military Survivors, Inc., a nonprofit, nonpartisan organization interested in the welfare of survivors of all branches of the uniformed services. I have a prepared statement of this organization which I desire to read before your committee.

Prior to January 1, 1957, death compensation was and still is in effect for survivor entitlement in service-connected deaths of the veteran. Over the years this compensation was increased to $87 per month for the widow alone, $121 a month with one dependent child, $150 with two dependent children, and $29 per month for each additional child. Dependent parents were entitled to $75 per month not tied to annual income.

On January 1, 1957, the Servicemen's and Veterans' Survivor Benefits Act (Public Law 881, 84th Cong., 2d sess.) became effective, whose compensation for service-connected deaths is called dependency and indemnity compensation. Survivors of those who died on active duty or thereafter or of those who died in retirement from a disease