We have pending from the Los Angeles national convention a resolution calling for the free hospitalization of veterans living outside the United States. At our request Representative Edith Nourse Rogers, Massachusetts, introduced for us H. R. 2650, and this bill is now pending before the House Committee on World War Veterans' Legislation.

INSURANCE

We have six resolutions pertaining to the subject of Government insurance as follows:

(1) A Los Angeles national convention resolution asking for legislation authorizing the United States to compromise claims arising on converted Government insurance, covered by H. R. 3050, itnroduced January 23, 1939, by Representative Vincent, Kentucky;

(2) A Cleveland national convention resolution asking that court costs be awarded to veterans who are successful in their law suits for recovery of insurance, covered by H. R. 4242 by Representative Flaherty, Massachusetts;

(3) A Chicago national convention resolution asking that there be no discontinuance of payment of insurance benefits awarded as a result of a judgment except on action by a court of competent jurisdiction, covered by H. R. 4793 by Representative Grant, Alabama;

(4) A Cleveland national convention resolution asking for legislation that the Government shall have 2 years in which to determine whether it desires to cancel any insurance policy on the ground it was obtained by fraud, covered by H. R. 2781 by Representative McCormack, Massachusetts;

(5) That Congress reinstate the specific loss clause in all Government insurance policies, covered by H. R. 4794, by Representative Grant, Alabama;

(6) A Chicago national convention resolution asking for legislation so that all statutes of limitations as to suits on automatic insurance be removed or at least extended to 1 year from the date of enactment of the legislation, for which a new bill is to be introduced during the opening days of the next session.

LOSS OF USE OF ARM, LEG, OR EYE

A Chicago national convention resolution requests:

"Amendment to Public Law No. 141, to provide an increase in the statutory award in those cases where the veteran suffered the loss of the use of an arm, leg, or eye."

Public Law No. 198, Seventy-sixth Congress, approved July 19, 1939, provided in section 6 that if the disabled person, as the result of service-incurred disability, has suffered the anatomical loss or the loss of use of only one foot or one hand or one eye, the rate of compensation shall be increased by $35 per month (from $25 monthly), but this section of Public Law No. 198 did not take care of certain disabled men who are awarded compensation under Public Law No. 141.

The necessary amendatory legislation has been drafted and will be introduced during the next session.

MISCONDUCT

We have a resolution which requests:

"Amendatory legislation to permit payment of compensation to veterans suffering with paralysis, paresis, or blindness, or who are helpless or bedridden without regard to the cause of their disability."

Public Law No. 196, Seventy-sixth Congress, approved July 19, 1939, sometimes referred to as the misconduct bill, restored to certain veterans suffering with paralysis, paresis, or blindness, or who are helpless or bedridden, compensation benefits provided that they were on the rolls March 19, 1933.

The Legion bill, as introduced during the first session of the current Congress, proposed to take care of all misconduct cases, but the committee reported a bill providing only for those on the rolls March 19, 1933. The resolution recites that there are other cases "probably not in any greater number but in just as great need but whose disabilities were not properly diagnosed or compensated prior to March 1933, and who are still without protection of the Federal Government extended to similar cases." A Legion bill has been drafted to cover this resolution and will be introduced in the next session.

NERVOUS DISORDERS AND "INDUSTRIAL INADAPTABILITY"

We have a resolution from the Chicago national convention, reading as follows:

"Resolved, That the American Legion, in convention assembled, in Chicago, September 1939, petition the Veterans' Administration to so amend its 1925 and 1933 rating schedule as to provide total ratings for the functional nervous disorders; and be it further

"Resolved, That we indorse the principle set out in H. R. 4004, Seventy-sixth Congress, first session."

It will be noted that there are two parts of this resolution, the first asking that the 1925 and 1933 rating schedules be amended so as to provide total ratings for the functional nervous disorders. As it stands, this is an administrative matter, but if it cannot be handled successfully through negotiation with the Veterans' Administration, then it will become a legislative matter.

The second part of the resolution endorses the principles set out in H. R. 4004, Seventy-sixth Congress, first session. This bill was introduced by Representative H. Jerry Voorhis, California, and the purpose of it is "To grant permanent and total disability ratings to veterans suffering from severe industrial inadaptability as a result of war service." It reads as follows:

"That where, as a result of sound medical evidence and/or examination, it has been established by the United States Veterans' Administration that a veterans' service-connected disability, resulting from his service in the armed forces of the United States during any war, has caused a severe industrial inadaptability, then in that case the veteran shall be considered as permanently and totally disabled and shall receive a rating of permanent and total for compensation purposes and for any other benefits to which such rating might entitle him regardless of any rating which any rating schedule might designate for such specific disability or disabilities."

OUT-PATIENT TREATMENT

Under this head we have two resolutions. The first is pending from prior conventions and asks that the Administrator of Veterans' Affairs be authorized and directed to furnish out-patient pneumothorax therapy, insulin and/or liver extract to veterans requiring such treatment or medication, notwithstanding that the disease necessitating the treatment may not be directly or presumptively service connected. This is covered in House Resolution 2292 introduced for us during the first session of the current Congress by Representative Rankin.

The Chicago national convention went a step further and requested, "Amendatory legislation to provide out-patient treatment for service-incurred disabilities for veterans residing in foreign countries where feasible."

A bill covering this out-patient treatment for veterans in foreign countries has been drawn and will be introduced.

OVERPAYMENTS

Another Chicago national convention resolution requests "Amendment to Public Law 484 so as to permit waiver of overpayments when, in the judgment of the Administrator of Veterans' Affairs, there is no fault on the part of the payee and when recovery would be against equity and good conscience."

A bill covering this subject is being drafted for introduction during the opening days of the next session.

"PARENT" AND "CHILD"-DEFINITION

A Chicago national convention resolution asks that the term "parent" used in all legislation pertaining to World War veterans be defined "To include the natural mother and father, the mother and father by adoption, the foster mother and foster father, and those who stood in loco parentis to the veterans" and that the term "child" be defined, "In all such laws as it is in the World War Veterans' Act, as amended."

A bill covering this resolution has been drafted and will be introduced.

PARENTS' COMPENSATION

Another resolution requests "amendatory legislation to permit payment of death compensation without limitation to parents who lost two or more children as a result of service incurred disabilities."

In order to accomplish this resolution it will be necessary to amend section 3 of Public Law 304, Seventy-fifth Congress, which now limits the payments to this class of beneficiary. A bill on this subject has been prepared.

POST-MORTEM RATINGS

This resolution requests, "Amendatory legislation to permit payment of compensation or pensions on a post-mortem rating for a period of 1 year prior to the death of the veteran, but not to exceed $1,000."

Veterans Regulation 2 (a) prohibits payment of accrued compensation or pension except on the basis of ratings in effect at the time of the veteran's death and it is frequently found that the rating in effect at the time of death is erroneous. The purpose of the resolution is to permit payment of compensation or pension on a post-mortem rating for 1 year prior to the death of the veteran but limits the amount of such recovery to $1,000. This resolution also is covered in a bill that has been drafted.

PRESUMPTIVES

The Chicago national convention reiterated the Legion stand with regard to presumptives. Our resolution on this requests amendatory legislation, "To restore full compensation payment in those cases where service connection is accorded by presumption."

We now have pending a bill, introduced for us by Representative Rankin, to amend existing law to restore 100 percent of compensation previously payable to veterans under the World War Veterans' Act. The bill, H. R. 2289, was introduced on January 11, 1939, and was referred to the House Committee on World War Veterans' Legislatioon.

PSYCHOPATHIC INFERIORITY

We also have a resolution reaffirming previous convention action requesting, "That the condition termed constitutional psychopathic inferiority be considered as a disability for compensation and pension purposes."

Heretofore this matter has been handled administratively with the Veterans' Administration, but if it is not accomplished in this manner it becomes a proposition for legislative efforts.

RATINGS-MINIMUM

We have a resolution requesting legislation, if necessary, "To require a rating of 1 percent or more for every service-connected disability."

The resolution points out that there are many veterans with service-connected disability so adjudicated by the Veterans' Administration but who are presently rated no percent on such service-connected disability, according to rating sched ules now in use, and the necessary legislation is requested so that every service. connected disability will be assigned a rating of at least 1 percent. A bill covering this is being drafted and will be introduced during the opening days of the next session.

RATINGS-PERMANENCY

Another resolution requests legislation, "To prohibit reduction in disability compensation ratings which have been in effect for a period of 10 years or more.' The resolution points out that stabilization of compensation has been accom. plished by regulation in approximately 90 percent of the cases through the expedient of not scheduling future examinations for compensation purposes, but that the practice still exists in which compensation is reduced in cases where a changed condition is found. The resolution further points out that this practice is unfair where a disability incurred in service is of 20 or more years standing.

RESPIRATORY DISEASES

There is pending from the Los Angeles national convention a resolution pointing to the fact that there are many veterans suffering from nontuberculous respiratory diseases and in many instances, due to the lack of adequate physical examination at time of discharge, the condition was not noted at that

time, and that many of these cases have shown continuity from some time shortly after dischange up to the present time. It was pointed out in the resolution it is the opinion of outstanding chest specialists in this country that these nontuberculous respiratory diseases in many instances can be in existence for a considerable period of time before they are detected and definitely diagnosed.

This matter has been handled administratively by the National Rehabilitation Committee through the filing of briefs with the Veterans' Administration, but if accomplishment of the resolution through this medium fails, then it becomes a legislative proposition.

TRAUMATIC NEUROSIS

There is a Chicago national convention resolution which reads as follows: "Be it resolved, That the American Legion in national convention assembled at Chicago 1939, hereby instructs its national committee on rehabilitation to seek a cancelation of regulation, described as Regulations and Procedure 7883, subparagraph F, and failing such immediate action, that the national legislative committee is instructed to seek by an act of Congress such amendment to the act as will give force and effect to the expressed intent of Congress."

The national legislative committee will await the report of the national rehabilitation committee on its efforts with the Veterans' Administration, and if it becomes a legislative matter then a bill will be drafted and introduced.

TUBERCULOUS CASES

There is pending from the Los Angeles national convention a resolution, as follows: "We request legislation that in all cases of pulmonary tuberculosis where it is shown that active tuberculosis exists the claimant will be granted a total and permanent rating when hospitalized."

This resolution is covered in H. R. 2646 introduced for us on January 16, 1939, by Representative Pete Jarman, Alabama.

WIDOW'S AND ORPHANS

The Chicago national convention reaffirmed, "The Legion policy with respect to completion of the fourth point of the 1933 four-point program, that no widow or orphan of a World War veteran be without Government protection.” A new bill covering World War widows and orphans was drafted and introduced for us by Representative Rankin, Mississippi, on October 23 as H. R. 7593. Through the passage of five acts since 1934, the Legion has at last reached the border line which separates compensation from pensions. There are two classes of widows and orphans compensation laws. The first covers the widows and orphans of those veterans who suffered a service-connected disability and died of that service-connected disability. The second class are the widows and orphans of World War veterans who suffered a service-connected disability but who died from some cause other than the service-connected disability.

The chain of progress on widows and orphans compensation laws under the fourth point of our four-point program pertains to the second class. These laws commenced with Public Law No. 484, approved June 28, 1934, which provided that the veteran at the time of his death must have been suffering from a service-connected disability of 30 percent or more. The next act was Public Law 844, Seventy-fourth Congress, which amended Public Law 484 but did not reduce the percentage from 30 percent. The next act, Public Law 304, Seventyfifth Congress, amended Public Law No. 484 by reducing the percentage from 30 percent to 20 percent, but added a new feature in such laws by declaring widows, to qualify for the compensation under that act, must have had a child born of her marriage to the veteran. The next act was Public, No. 514, Seventy-fifth Congress, approved May 13, 1938, which reduced the veteran's service-connected disability to 10 percent or more, and also eliminated the provision in Public, 304 requiring the birth of a child before benefits would be payable.

The fifth act was Public Law No. 198 of the last session of Congress which wiped out the 10-percent disability and provided that the surviving widow, child, or children of any deceased person who served in the World War before November 12, 1918, or if the person was serving with the United States military forces in Russia before April 2, 1920, and who was honorably discharged

after having served 90 days or more (or who, having served less than 90 days, was discharged for disability incurred in the service in line of duty), who dies or has died from a disease or disability not service connected and at the time of death had a disability directly or presumptively incurred in or aggravated by service in the World War for which compensation would be payable if 10 percent or more in degree, shall upon filing application and such proofs in the Veterans' Administration as Administrator of Veterans' Affairs may prescribe, be entitled to receive compensation, as provided by this act.

H. R. 7593, the bill now pending, provides that the widow or children of any World War veteran who served 90 days or more and was honorably discharged or who having served less than 90 days was discharged for disability, shall be entitled to compensation. An income limitation is contained in the act which coincides with the deduction now allowed under internal revenue laws.

VETERANS' ADMINISTRATION-RETIREMENT OF EMPOYEES

We have another resolution which points to the fact that many Veterans' Administration nurses, physicians, and other personnel have served long and faithfully, and the duties of the personnel are strenuous and become increasingly heavy as they advance in years. It requests, "The national legislative committee of the American Legion to make every effort to secure a reduction in retirement age for personnel in the employment of the Veterans' Administration from 70 years to 62 years, retirement to be optional, if physically fit."

This subject is being more thoroughly studied for the purpose of drafting a bill for introduction during the next session.

Colonel TAYLOR. Mr. Chairman and lady and gentlemen of the committee, it is my pleasure to present to you the national commander of the American Legion, Raymond J. Kelly. [Applause.] The CHAIRMAN. Commander Kelly, we are glad to have you.

STATEMENT OF RAYMOND J. KELLY, NATIONAL COMMANDER, AMERICAN LEGION

Commander KELLY. Mr. Chairman, Mrs. Rogers, and gentlemen of the committee, as national commander of the American Legion, with a membership of over 1,000,000 World War veterans and its affiliated organization, the American Legion Auxiliary, of over one-half million members, I want to express my sincere appreciation for this opportunity to appear before you this morning. I also want each one of you to know these, our organizations, are conscious of the studious consideration this committee has always given to the proposals submitted by the Legion.

With your permission I shall follow the orders of the chairman and make only a general statement.

The chairman of our national legislation committee, Irving Jennings, of Phoenix, Ariz., and John Thomas Taylor, the director of our national legislative committee, will present the program and facts in detail at such time as you see fit for them. Earl V. Cliff and Watson Miller, of our rehabilitation committee, and other representatives, will be present during your hearings to give any possible assistance on technical questions.

The CHAIRMAN. Commander Kelly, may I interrupt you at that point?

Commander KELLY. Yes.

The CHAIRMAN. I forgot to state that we are going to start the regular hearings next Tuesday at 10:30, and at that time we will hear these other representatives of the veterans' organizations.