Senator TALMADGE. The next witness is Mr. Charles L. Huber, national director of legislation, Disabled American Veterans.

We are very happy to have you back with us again.

STATEMENT OF CHARLES L. HUBER, NATIONAL DIRECTOR OF LEGISLATION, DISABLED AMERICAN VETERANS, ACCOMPANIED BY WILLIAM FLAHERTY AND WILLIAM GARDINER, DAV

Mr. HUBER. Thank you, sir. Mr. Chairman, I am accompanied this morning by Mr. William Flaherty and Mr. William Gardiner.

Senator TALMADGE. We are delighted to have you, gentlemen. Mr. HUBER. Mr. Chairman, members of the subcommittee, we appreciate the opportunity to present the views of Disabled American Veterans, with respect to several bills referred to the committee which seek to improve the disability compensation and dependency and indemnity compensation programs.

At the outset, the DAV wishes to associate itself with remarks made by the subcommittee chairman when he introduced for himself and all other members of the committee, S. 3067, the Veterans Disability Compensation Act of 1974. You stated in true and touching terms that the service-connected disabled veteran "has in the past year once again become a casualty. This time the casualty has been produced not by a bullet or shrapnel, but by increases in the cost of living which have deprived many disabled veterans living on fixed incomes."

We share the chairman's hope that these hearings "can be completed quickly, so that the full committee and, thereafter, the full Senate can consider the (measure) at the earliest possible time.”

As you know, Mr. Chairman, our National Commander, John T. Soave, appeared before the full Committee on Veterans' Affairs on February 27. He informed the committee that inquiries reaching us at national headquarters are manifesting concerned interest in the need for compensation adjustments. The saddest inquiries come regularly from the seriously disabled veterans, all expressing their dire situations due to the higher costs of food, clothing, housing, fuel, and other basic necessities. Those veterans whose only income is their fixed monthly compensation payments are hit hardest by runaway inflation, and are desperately struggling to survive.

Mr. Chairman, all of us are acutely aware of the fact that the cost of goods and services increased dramatically since this committee so thoughtfully improved and updated the compensation program in August 1972. Available statistical data show that overall living costs have gone up by approximately 12 percent, and the food prices are up a record breaking 20-25 percent. Current trends clearly indicate that we can expect still further substantial increases in retail prices in the months ahead.

These facts and circumstances give great urgency to the need for early action on the compensation legislation now before the committee. It is our feeling that any proposed increase in compensation rates should, in all fairness, take into account not only the loss in purchasing value since the 1972 compensation increase, but also an estimate of the additional loss which will occur between the present and the next review of the program by this committee and the Congress.

The bill, S. 3067, has a twofold purpose. It would provide an acrossthe-board increase of 15 percent in the basic disability compensation rates effective May 1, 1974. Dependency allowances payable to veterans with service-connected disability rated 50 percent or more would also be increased by 15 percent.

We applaud the chairman and committee members for having introduced this most thoughtful, highly important measure which will, if enacted, serve to bring compensation rates more closely into balance with rises in the cost of living, and we vigorously urge its passage.

Mr. Chairman, I would like to comment for a moment on the March 4, 1974, letter from President Nixon to Senators Hartke and Hansen, and Representatives Dorn and Hammerschmidt, pertaining to the compensation program. The DAV appreciates and welcomes President Nixon's belated call for an increase in compensation payments, and his expression of concern for disabled veterans and their survivors. However, we must, with due respect, take exception to the President's proposal to establish a future system of automatic cost of living increases in compensation payments, as measured by the Consumer Price Index.

The DAV National Convention has refused to adopt any fixed policy that would tie disability compensation increases to the Consumer Price Index.

Mr. Chairman, I think I can say without qualification, that the American people are agreed that veterans with disabilities incurred as the result of military service are most deserving of what the Congress has done for them in the form of compensation benefits and this committee's contribution in this regard is well established.

The committee traditionally has kept the compensation program under close and continuing study, and has steadfastly taken whatever steps were necessary to helpfully satisfy the changing needs of a veteran disabled in the service of his country.

The DAV is always pleased to have the opportunity to come periodically before the committee in all matters relating to the disability compensation and DIC programs. We are grateful for the close relationship which exists between the DAV, the committee, and its staff members. Accordingly, we feel strongly that the subject of compensation adjustments should remain under control of this committee. Moreover, we hold firmly to the view that this committee and the Congress should evaluate and give prior approval to any VA contemplated "structural" changes in the Schedule for Rating Disabilities. The bill S. 1076 (VA Accountability Act), although not the subject of today's hearings, would assure that any such changes would be carefully scrutinized by the Congress, and that the best interests of our disabled veterans would be protected.

Another bill relating to compensation now before the committee is S. 2710 which, like S. 3067, authorizes a 15-percent increase in compensation rates and dependencv allowances. The measure, introduced at DAV request by Chairman Hartke, has an additional feature which proposes to raise from $47 to $60 the special statutory award payable to veterans who have suffered certain anatomical losses or loss of use of limbs or body organs. These awards were last raised on July 1, 1952, a period of almost 22 years. The DAV in this time frame has, on numerous occasions, sponsored legislation to increase the existing $47 monthly payment. We feel impelled to cry out once more for action on this worthy proposal.

It has been pointed out in previous hearings, Mr. Chairman, that this special monthly compensation-authorized by section 314(k) of title 38, U.S. Code-is in the nature of a supplemental award which recognizes factors other than the economic loss involved. In creating the award, the Congress recognized that there was no way to adequately compensate the veteran for his physical loss and the irreparable damage suffered in the service of his country. Accordingly, the Congress characteristically-sought to repay the veteran for the pain and suffering, the loss of physical and mental integrity, which are inherent in disabilities of this nature. Indeed, the psychological trauma accompanying these losses has had an extremely adverse effect upon many of these individuals. Moreover, there are other considerations that are often overlooked, i.e., the strains and sacrifices an amputee must suffer every moment of the day and night. The loss of function prevents his taking part in many activities which people regard as a way of life. And, Mr. Chairman, none of these things appear in a cost-of-living index.

In this connection, the question has often been asked, "How do you place a value on the loss of a leg, an arm?". We think anyone would be hard pressed to come up with a precise response. It does occur to us, however, that since the Congress, in 1933, placed a $25 value on this statutory payment, then successively raised it to $35 in 1945, to $42 in 1946, and to $47 in 1952, it logically follows that the value-if measured in a strictly monetary sense-has greatly increased in terms of 1974 economic standards. This bill, Mr.. Chairman, would affect 86,094 veterans at a first year cost of $13.3 million-an extremely small figure in terms of today's total budget.

It is our hope that the committee-after giving full and thoughtful consideration to this matter-will approve the very modest increase in the special monthly awards as proposed in S. 2710.

Dependency and indemnity compensation-Mr. Chairman, the DAV strongly supports the enactment of the bill S. 3072 which was introduced recently by Senator Hartke, the distinguished chairman of the Committee on Veterans' Affairs. Cosponsored by all members of the committee, the measure provides a 16-percent increase in DIC payments and removes one of the remaining discriminations in serviceconnected death benefits by equalizing wartime and peacetime rates under the old death compensation program.

Our reasons for urging the adoption of the DIC increases proposed in S. 3072 are essentially the same as those expressed earlier with respect to the need for increases in the rates of service-connected disability compensation.

The bill contains another significant provision that represents a longstanding DAV legislative objective. It would provide for the payment of dependency and indemnity compensation to survivors of deceased veterans who were rated 100 percent disabled by reason of service-connected disabilities for 20 or more years.

In assessing the merits of this proposal, Mr. Chairman, we think it reasonable to say that a veteran who has suffered the distress and debilitating effects of a service-related total disability for 20 years should, thereafter, have statutory assurance that upon his death his widow will be provided for by payment of dependency and indemnity compensation. This certainly would give the veteran much peace of mind in the knowledge that his wife-who ministered to him for

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many years and often at great personal sacrifice-will have a more favored and dignified place in our society.

There is evidence that many of these women, of necessity, had cut themselves off from society. Many underwent rigid privations. In many instances the veteran survived for a long period of time through his wife's efforts, despite his severe service-connected disability.

In an overwhelming majority of these cases, the totally disabled veteran is unable to pursue a gainful occupation. He very definitely had no opportunity to make adequate provision for his survivors.

Attached to this statement is an addendum citing a number of cases which we believe support our position in respect to the 20-year feature of S. 3072. It is requested that the addendum be made a part of the hearing record.

Senator TALMADGE. Without objection, it will be included in the record at the conclusion of testimony.

Mr. HUBER. I might point out here, Mr. Chairman, that the Veterans' Administration in previous reports stated that the costs of this 20-year feature "are not significant.'

We think the Government has a responsibility in this instance which has, so far, been ignored. We urge the committee's compassionate support and favorable action on this most reasonable and beneficial provision.

S. 2363-Another of the bills under consideration by the committee would improve the program of assistance in providing automobiles and adaptive equipment for certain seriously disabled veterans by increasing from $2,800 to $3,300 the basic purchase allowance and equalizing the eligibility requirements for post-Korean and Vietnam

era veterans.

As you know, Mr. Chairman, under existing law veterans entitled to an automobile and adaptive equipment for service performed after January 31, 1955, must have "an injury incurred or a disease contracted in line of duty as the direct result of the performance of military duty."

Conversely, veterans of World War II and the Korean conflict are only required to have incurred the prescribed disability "as the result of an injury or disease contracted in or aggravated by, active military, naval or air service."

The equalization of eligibility for the automobile grant as proposed by S. 2363 is supported by the DAV in accordance with the mandate of our most recent National Convention. We believe that the $500 increase in the one-time purchase allowance is fully justified in view of the rise in cost of automobiles since the allowance was last increased by Public Law 91-666, effective January 11, 1971.

Other provisions of the bill which are supported by the DAV would expand the definition of adaptive equipment to include an air-conditioning unit when it is necessary for the health and safety of the veteran, and any lifting devices that are needed to assist the eligible person into and out of the automobile or other conveyance.

Under current VA regulations, the above described items are not considered to be adaptive equipment, and consequently may only be furnished to eligible veterans on the basis of medical necessity. Enactment of S. 2363 would rectify this situation by broadening the definition of adaptive equipment to specifically include all special devices necessary to assure the safe and healthful operation of the vehicle.

Mr. Chairman, we feel that these modifications are highly desirable, and will serve to improve the system of benefits for a deserving group of the Nation's most severely disabled veterans. The DAV is pleased to support S. 2363, and we urge its passage.

Ι

In closing, Mr. Chairman, may I again express appreciation for giving the DAV the opportunity to appear before you in these crucial

matters.

Senator TALMADGE. Thank you, Mr. Huber, for your gratifying

statement.

You heard Mr. Vaughn's testimony a moment ago, did you not? The VA recommended an automatic cost-of-living increase in DIC benefits to disabled veterans. Do you support that?

Mr. HUBER. No, sir. Our national convention considered a resolution of this nature and rejected it.

Senator TALMADGE. Thank you very much, Mr. Huber.

[The addendum of the Disabled American Veterans follows:]

ADDENDUM OF THE DISABLED AMERICAN VETERANS

EXHIBIT I

This World War II service-connected veteran was rated as being 100 percent disabled from October 1945 due to a bilateral above-the-knee amputation of both legs. The veteran's death occurred in the fall of 1973 due to a cardiovascular condition. His widow applied for service-connected death benefits, and her claim was denied by the VA.

EXHIBIT II

This World War II service-connected veteran was rated as being 100 percent disabled from November 1945 due to a loss of the right hand and injuries to the right arm, impairment of the digits of the left hand, keratitis of the right eye with conjunctivitis of both eyes, loss of bone in the right temporal area, scars and powder burns of the face, and otitis media. The veteran's death occurred in January 1971 due to a myocardial infarction. His widow filed a claim for serviceconnected death benefits and her claim was denied by the VA.

EXHIBIT III

This World War II service-connected veteran was rated as being 100 percent disabled from December 1945 due to а post-operative skull defect, a chronic brain syndrome and paresis of the right inferior oblique. Death occurred in June 1970 due to an accidental concussion. His widow filed a claim for serviceconnected death benefits contending that her husband's accidental death was related to his service-connected visual defects. Her claim was denied by the VA.

EXHIBIT IV

This World War II service-connected veteran was rated as being 100 percent disabled from February 1946 due to bi-lateral amputation of both legs. Death occurred in February 1967 due to bronchial-pneumonia with arteriosclerotic heart disease. His widow filed a claim for service-connected death benefits and her claim was denied by the VA.

EXHIBIT V

This World War II service-connected veteran was rated as being 100 percen disabled from October 1951 due to a mental disorder, dementia praecox, paranoia. His death occurred in January 1972 due to a coronary thrombosis. His widow applied for service-connected death benefits and her claim was denied by the VA.

EXHIBIT VI

This World War II service-connected veteran was rated as being 100 percent disabled from June 1947 due to the loss of one-half of his mandible, the loss of part of the right side of his face, the loss of part of the right ramus, incomplete paralysis of the Seventh Nerve, right, destroyed right lachrymal duct,