VI (A) of Veterans' Regulation No. 6 series, promulgated under provisions of Public Law No. 2, Seventy-third Congress, March 20, 1933, shall not become effective until the veteran's ninety-first day of continuous hospital treatment or institutional or domiciliary care by the United States or any political subdivision thereof.

At the present time his compensation is reduced to $15 per month or his pension to $6 per month if he has no dependents, immediately upon going into any such institution. We believe that in no event should such benefits be reduced until after he has been in an institution for at least 90 days.

Section 26, separately introduced by Mr. Bryson as H. R. 7976, would amend the same provision in the law by providing that in no event should the compensation or pension be reduced to an amount lower than $25 per month.

We believe that there is real need for the enactment of both of these sections as proposed. At the present time, many veterans, who are actually in need of hospitalization, refrain from taking advantage of it because of the fact that their compensation or pension would necessarily be reduced and thus make it impossible for them to meet other financial commitments. That, we believe, is contrary to the interests of disabled veterans and very inequitable treatment.

Section 27, separately introduced by Congressman Grant in H. R. 2774, would in effect provide that pending claims for compensation, pension, or emergency officers' retirement pay may be adjudicated upon the evidence in file at the time of death and that any amount found due shall be awarded and paid in the manner as heretofore provided.

In other words, where a veteran had evidence on file, which established that he was entitled to certain benefits, then we believe those benefits ought to be payable to his next of kin or estate.

Mr. Chairman, before you leave, I just wanted to know whether or not there might be an opportunity to continue my testimony tomorrow if I fail to get through today.

The CHAIRMAN. I hope you can complete your statement today. Mr. RICE. I will try my best.

Section 30, separately introduced by Mr. McCormack as H. R. 2783, would make it possible for insurance policies to be taken out with the Veterans' Administration by anyone in the active service of the Army, Navy, or Marine Corps even after the expiration of the first 120-day period. The law now provides for a limitation to the first 120-day period and we advocate that that restriction be removed from the law.

Section 31, separately introduced as H. R. 7940, by Mr. McCormack, would remove the statute of limitations as to suits on Government-insurance policies, making it possible for anyone who considered that he had an equitable claim to file suit in Federal court as to his Government-insurance policy, after there had been a final denial thereof by the Veterans' Administration.

The Veterans of Foreign Wars, at its last national encampment, adopted a resolution that all statutes of limitation be entirely lifted from the law. This is one of the provisions toward that end.

Section 32, separately introduced as H. R. 2781, by Mr. McCormack, would provide that Government-insurance policies should be incontestable 2 years after the date of issuance, except for nonpay

ment of premiums or on the ground that the applicant was not a member of the military or naval forces of the United States.

The CHAIRMAN. That is in line with other insurance companies? Mr. RICE. Yes; that would eliminate the provision that it can be canceled because of fraud. We believe a policy in effect for 2 years should not be cancelable on the ground of alleged fraud. In that connection, I would like the privilege of inserting in my testimony a compilation of various insurance policies canceled by the Veterans' Administration on the alleged ground of fraud, showing the total amounts of such policies, the amount of premiums paid on such policies, the amount of reserves on such policies, and the amount of loan value of such policies and the total amounts that really have been surrendered by the veterans or their dependents. We consider this is one of the most inequitable provisions that has been permitted to exist in the law.

Mrs. ROGERS. Do you remember approximately the amount?

Mr. RICE. It involved over a million dollars, if I recall correctly. I do not have the table here because we still have to get some additional figures.

Mrs. ROGERS. Will you put that in later?

The CHAIRMAN. Yes; he said he would like to insert it. I see no objection to it.

Mr. RICE. Thank you.

(The statistics are as follows:)

NOTE. Not a complete list. Files not obtainable on all csaes. These figures are approximate only. Dividend set-off not considered.

Fraud found after P. T. award was made. Debit exceeds credits on the following cases: William Harold Ehrler, C-1259077, K-513344, file K-96120; Leo H. Sprain, C-1274993, T-1900807; Mortimer J. Odell, C1421705, K-834621; Frank E. Keuper, C-1722060, K-799619.

Section 33, separately introduced as H. R. 2877, by Mr. Van Zandt, would provide for the privilege of hospitalization for any person who had served during any war, campaign, or expedition, as well as the privilege of domiciliary care, on the same basis as such hospitalization or domiciliary care is now available to World War veterans.

This we believe to be a very meritorious provision and one that ought now to be enacted into law. Practically no additional cost would be involved, because the veterans of the campaigns and expeditions would be unable to get their hospitalization unless there was room available in a facility. But it would be a privilege which would be valuable for them to have and one which we think they are equally entitled to with World War veterans.

Mr. VAN ZANDT. Will the gentleman yield?

What position does the Veterans of Foreign Wars take on the granting of hospitalization to men in the Regular Establishment or to men who have been discharged from the Regular Establishment? Mr. RICE. Under the title "Hospitalization for service-connected disability," the Veterans of Foreign Wars did not, at its last national encampment, adopt any resolution as to whether or not veterans of the Regular Establishment should be privileged as to hospitalization. Therefore, I am unable to give their viewpoint on it. Section 34, separately introduced as H. R. 6586, by Mr. Schwert, would provide that, in the discretion of the Administrator of Veterans' Affairs, necessary hospital care, including medical treatment, may be furnished to veterans who are citizens of the United States temporarily sojourning or residing abroad, for disabilities due to war service in the armed forces of the United States.

This is a section which has already been favorably reported by the Veterans' Administration and, I believe, also by the Bureau of the Budget, and ought to be given the so-called green light by this committee.

Section 35 (separately introduced by Mr. McArdle as H. R. 7982), would provide that there should be no deductions from the earnings of employees of the Veterans' Administration for quarters, subsistence, and laundry, unless such allowances are voluntarily accepted and used by such employees; and, where such allowances are furnished to employees of the Veterans' Administration, charges therefor shall be at cost.

I understand there will be this year some liberalization by the Veterans' Administration concerning this particular matter on the basis of an understanding arrived at at the hearings of the House Committee on Appropriations.

Section 39, separately introduced as H. R. 7929 by Mr. Bates, would provide authority to the Administrator of Veterans' Affairs to pay the actual necessary expenses of travel, including lodging and subsistence, or in lieu thereof an allowance based upon the mileage traveled, of any veteran to or from a Veterans' Administration facility, or other place for the purpose of examination, treatment, or care: Provided, that payment of mileage upon termination of examination, treatment, or care may be made prior to completion of such travel: And provided further, that when any such person requires an attendant other than any employee of the Veterans' Administration for the performance of such travel, such attendant may be allowed expenses of travel upon a similar basis.

We understand that the Veterans' Administration expects to be able to liberalize this on the basis of an Executive order. A bill providing exactly the same as is outlined in section 39 has already passed the Senate, namely S. 2866, which is now before this committee. We believe that bill ought to be favorably reported out by this committee within the near future and ought to become a part of the law so that there should be no question whatsoever as to the authority of the Administrator of Veterans' Affairs to provide for such traveling allowances.

Section 40, separately introduced as S. 1497 by Senator Reynolds in the Senate, would provide for the same compensation for veterans of any possible future war in which the United States might unfortunately become engaged for any disability incurred or aggravated by any service in such future war on the same basis as provided for veterans of the World War suffering with similar service-connected disabilities.

Moreover, this bill would provide that at least the same pension should be provided for dependent widows and orphans and parents of any veteran of any such possible future war as might be killed in action or as might die as a result of any disability incurred in any such future war, on the same basis as provided for the widows and orphans and dependent parents of deceased veterans of the World War who die by reason of service-connected disability.

Let me say concerning this bill that we consider it to be important as a factor in national defense, because, if the growing youth of our -country should be given the assurance that such compensation protection would be afforded to them in event of disability incurred in any future war and to their dependents in the event they should die by reason of such war service, they would be apt to go to the service of their country during any such emergency more enthusiastically.

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