RECOMMENDATIONS OF VETERANS' ORGANIZATIONS, 1974 TUESDAY, MARCH 5, 1974 HOUSE OF REPRESENTATIVES, COMMITTEE ON VETERANS' AFFAIRS, Washington, D.C. The committee met at 10:30 a.m. pursuant to notice in the caucus room, Cannon House Office Building, Representative Thaddeus J. Dulski, presiding. Mr. DULSKI. The committee will come to order. First, we will have the introduction of the National Commander by the Honorable Gilbert Gude, Congressman from Maryland. We are glad to have you with us, Mr. Gude. Mr. GUDE. Thank you, Mr. Chairman. I am pleased to introduce today the National Commander of the American Legion, Robert E. L. Eaton of Bethesda-"Bob" to his legion of friends. I have known Bob in his volunteer work in helping me to select the best nominees for the military academies and for his careful interviewing of the applicants and thoughtful advice to them. He is a tough old fighter, a decorated combat veteran who retired in 1961 from the active military service with the permanent rank of major general. He is now the president of a public relations and management consulting firm here in Washington. He has been department commander of the Legion in Maryland, a member of the national executive committee and national vice commander until his unanimous election as national commander.. He is a great advocate of American volunteerism and community service, American strength and American patriotism, and I am proud to know him. Maj. Gen. Robert E. L. Eaton. [Applause.] STATEMENT OF MAJ. GEN. ROBERT E. L. EATON, NATIONAL COMMANDER, THE AMERICAN LEGION Major General EATON. Thank you, Congressman Gude. Mr. Chairman, I have with me some of the officers of the American Legion and Auxiliary and would like to have your indulgence while I ask them to stand up. Mr. DULSKI. We are happy to have them. Major General EATON. The vice commander from the State of Washington, Frank Brooks, vice commander from the State of South Carolina, N. E. Brown, vice commander from the State of Connecticut, John Roberto, vice commander from the State of Indiana, Gilbert Sheeks, vice commander from Louisiana, M. W. Swords, our Chaplain, J. D. Fortenberry of Missouri and national sergeant at arms, Howard Larsen of New York. [Applause.] From the American Legion Auxiliary, national president, Mrs. B. M. Jarrett of North Carolina, national secretary, Miss Doris Anderson of Texas, national treasurer, Mrs. Myner Freeman of Indiana, the national legislative committee chairman, Mrs. James E. Starr of Minnesota; those members of the national veterans' affairs and rehabilitation committee present include the chairman, Mrs. Alan M. Schanel of Rhode Island, the vice chairman and director of hospital volunteers, Mrs. Mem Tierce of Alabama, member and director of field service volunteers, Mrs. Jack Smith of Arizona, the national VAVS representative, Mrs. John J. Powell, Jr. of Delaware, and the national children and youth committee chairman, Mrs. Paul Brown of Idaho. [Applause.] Here at the table I have Mr. Clarence C. Horton of Alabama, chairman, national legislative commission, William Linker of South Dakota, chairman of the national veterans' affairs and rehabilitation commission, Harold Stringer, director of legislative commission, from Alaska, and E. H. Golembieski, director of the national veterans' affairs and rehabilitation commission, from Pennsylvania. [Applause.] Thank you, Mr. Chairman. Mr. Chairman and members of the committee, it is a very great pleasure for me to appear here today before this distinguished committee of the Congress. The American Legion is grateful to you for the programs you have initiated through the years. You have recognized the needs of the Nation's veterans and have sponsored legislation to meet those needs. I am honored to represent the American Legion, the largest of all the veterans' organizations, now completing its 55th year of dedicated service to the Nation and its veterans. The American Legion is proud of its record of achievement, and of its association, on behalf of veterans, with this committee. We appreciate your efforts we look to you for leadership-and we pledge to you our continuing cooperation and support. I cannot compliment this committee without at the same time expressing our thanks to your verv able staff director and the entire committee staff. Their expertise in the field of Veterans affairs, and their cooperation with the American Legion and its staff are invaluable to us as we continue to do our best to fulfill our responsibilities to the Nation's veterans and their dependents. I want to thank you, Mr. Chairman, on behalf of the American Legion, for introducing H.R. 12459, a bill to restore the observance of Veterans Day to November 11. Our thanks go also to the 21 members of this committee who joined with you in sponsoring this legislation. The American Legion opposed enactment in 1968 of that portion of Public Law 90-363 which changed the dates for observance of patriotic holidays and we have urged every Congress since that time to restore Veterans Day and Memorial Day to their traditional dates. Thirty-six of the States will observe Veterans Day on November 11 this year notwithstanding Public Law 90-363, and we expect more of the State Legislatures to take action in 1974. While the Judiciary Committee has jurisdiction of this matter, it is significant that you and 21 other members of this committee who speak for the veterans in the House of Representatives believe as we do and cosponsored H.R. 12459. Your support of our efforts, and the endorsement of the President in his veterans message last month, give us new hope and encouragement to press on to restore November 11 as the official date for the observance of Veterans Day throughout the Nation, an objective long sought by the American Legion. We note with sadness that two distinguished senior members of this committee have passed from our midst. Congressman John P. Saylor of the 12th District of Pennsylvania, and Congressman Charles M. Teague of California's 13th District, are no longer with us. These Congressmen were champions of the veteran and his dependent during their years in public life. Their contribution to the work of this committee will have a profound and lasting significance, and will be remembered as long as there are veterans who need the care and rehabilitation that a grateful Nation is committted to provide. This committee has lost two of its best and we have lost two of our most distinguished and best loved fellow Legionnaires. Before speaking to some of the major concerns that will occupy our attention and energy this year, I want to renew the invitation earlier extended to each of you to be my guest tomorrow evening at our annual dinner honoring the Congress. Legionnaires from throughout the country will be in Washington for this occasion, and they look forward to meeting with the Members of their congressional delegations in an atmosphere of hospitality and friendship. Vice President Gerald R. Ford will receive the American Legion Award for Distinguished Public Service, and many of his friends and colleagues in the Congress will be present to honor him. The dinner will be held at the Sheraton Park Hotel, and I hope that all of you will be able to join with us. I shall now direct my remarks to some of our major areas of concern in the field of veterans affairs. AMERICAN LEGION AND NATIONAL HEALTH INSURANCE For 22 years, the American Legion has watched carefully the continuing debate on national health insurance. This organization has not taken a position on the subject of national health insurance, because that subject is not deemed to be germane to the purposes for which the Legion was founded. However, we have a natural and a legitimate interest in national health insurance because of its potential effect on the veterans medical care program that is now maintained and operated by the Veterans' Administration. With reference to this area of national concern, the American Legion has reached certain conclusions that I would like this distinguished committee to be aware of, because it is clear that any national health insurance program that comes into being will be the result of legislation developed by the Congress. The American Legion believes that some form of national health insurance will be established under Federal sponsorship. We believe that such a program will have a traumatic adverse effect on the VA medical care program, unless Congress takes specific action. to protect the integrity of the VA system. The American Legion is unalterably opposed to the merger, integration, or affiliation of the VA medical care system with any national health insurance program. This organization will testify before the appropriate committees of Congress when it has the opportunity to do so. The Legion believes that any dilution or diminishment of the present VA medical care program, for whatever reason, would be a breach of trust of a commitment of the American people to its war veterans. The separate identity of the VA medical care program as one for veterans is essential for the foreseeable future, in the face of a veteran population now in excess of 29 million. The American Legion will continue to look to the members of the Veterans' Affairs Committees of both Houses of Congress to actively assist in whatever effort is necessary to maintain the integrity of the VA medical care program, when Congress reaches the point of writing legislation to establish national health insurance. INCREASED RATES OF COMPENSATION FOR SERVICE-DISABLED VETERANS At present, chapter 11 of title 38, United States Code, provides for payment of compensation of $495 monthly to those veterans whose service-connected disabilities are evaluated at 100 percent. For those rates less than 100 percent, the payments range from $28 to $275. Under the authority of this chapter, the Administrator of Veterans' Affairs adopts and applies a schedule of ratings in earning capacity from specific injuries, including disease residuals. These ratings are based, as far as practicable, upon the average impairments of earning capacity resulting from such injuries in civil occupations. Disability compensation payments were last increased by Public Law 92-358, effective August 1, 1972. At that time the increased payment for 100 percent disability compared favorably with spendable average monthly earnings of production or nonsupervisory personnel on private or nonagricultural payrolls. To maintain the veteran's purchasing power, these payments must be increased in response to cost-of-living increases. As published by the Bureau of Labor Statistics, Department of Labor, the August 1, 1972, Consumer Price Index was 125.6, and by February 1, 1974, it had advanced to 139.7. an increase of 11.32 percent. For the 6 months ending in November, the Consumer Price Index rose at a seasonably adjusted rate of 9.7 percent. There is little, if any, assurance that the rate will not advance in excess of this amount. Since disability compensation rates do not automatically respond to changes in the cost of living, legislation proposed should anticipate increases that will occur in the interval between enabling legislation granting offsetting increases. Mr. Chairman, we urge this committee's consideration of increasing the monthly rate of compensation for 100 percent disability to $600. This amount would materially assist these severely disabled veterans in meeting today's cost of living at a standard which is not demeaning to their status as veterans. A similar percentage increase in monthly compensation payments should be provided for those whose disability evaluations are less than total and for those entitled to special monthly compensation payments. VETERANS' ADMINISTRATION SCHEDULE FOR RATING DISABILITIES Although the Administrator of Veterans' Affairs, by direction of the President on February 14, 1973, has recalled from the comment process the proposed draft revision of the Veterans' Administration schedule for rating disabilities, the American Legion does not believe that this is the end of efforts in this direction by this administration or by following administrations. A look at the history of the economic validation of the schedule for rating disabilities will disclose that considerable effort and expense was directed to the project that was sanctioned originally by the Bureau of the Budget, and later by the Office of Management and Budget. It seems unlikely that the proposed revision will be permanently abandoned. As we recede from the end of our involvement in Vietnam, and the maimed and wounded are absorbed into our society, we predict that eventually the Veterans' Administration will be instructed to promulgate a revised schedule based on the economic validation study. Under the present language of section 355 of title 38, United States Code, the Administrator of Veterans' Affairs has unrestricted authority to change the disability rating schedule. Mr. Chairman, we continue to remain convinced that congressional approval should be mandatory before any changes or revisions are incorporated in the schedule for rating disabilities. We urge your favorable consideration of legislation which would amend section 355 of title 38, to provide that any revisions or adjustments in the provisions of the rating schedule pertaining to degree of disability for rating purposes be submitted to the Congress, and that such revisions or adjustments shall not become effective if either House, by resolution within 90 days, expresses disapproval. INCREASE MONTHLY RATES OF DEPENDENCY AND INDEMNITY COMPENSATION PAYABLE TO WIDOWS AND CHILDREN Dependency and indemnity compensation is authorized by chapter 13 of title 38, United States Code, and payable by the Veterans' Administration to a widowed spouse, child, or dependent parent because of a service-connected death. For widowed spouses, the monthly rates are based on the service pay grade of the deceased veteran or serviceman. Rates payable to or in behalf of eligible children are identical. Since parent's dependency and indemnity compensation entitlement is subject to annual income restrictions or limitations, their need for increases will be covered elsewhere in my statement under death and disability pension. Monthly rates of dependency and indemnity compensation payable to surviving spouse, spouses with children, and to children alone were last increased by Public Law 92-197, effective January 1, 1972. On January 1, 1972, the Consumer Price Index was 123.1. By February 1, 1974, it had advanced to 139.7, an increase of 13.5 percent. Considering the cost-of-living increase that has occurred since January 1, 1972, and the increase anticipated if the seasonably adjusted rates publshed by the Bureau of Labor Statistics is any guideline, it appears that about a 25-percent increase in dependency and indemnity compensation rates is needed to enable these surviving dependents |