TABLE 67.—Spanish-American War deceased veterans whose dependents were receiving compensation on account of service-connected death or pension on account of non-service-connected death of the veteran, showing total dependents and average monthly value per case, at the end of each fiscal year, 1936-50

TABLE 68.-Regular Establishment deceased veterans whose dependents were receiv ing compensation on account of service-connected death of the veteran, showing class of beneficiary, total dependents, and monthly value of awards, as of June 30, 1950

NOTE.-Does not include 133 special act cases having a monthly value of $4,261 and an average monthly value per case of $32.04 being paid to 115 widows, 3 children, and 15 parents.

TABLE 69.-Regular Establishment deceased veterans whose dependents were receiving compensation on account of service-connected death of the veteran, showing total dependents and average monthly value per case, at the end of each fiscal year, 1936-50

TABLE 70.-Terminations of compensation or pension death awards, showing reason for termination, during fiscal year 1950

TABLE 71.-Emergency, provisional, probationary, or temporary officers of World War I receiving retirement pay, as of June 30, 1950

TABLE 72.-Retired officers of the Army of the United States (except Regulars) receiving retirement pay as of June 30, 1950

Mr. DONOHUE. We will hear from the representatives of the four veterans' organizations. First the testimony of Mr. Donald C. Knapp of the Veterans' Administration.

STATEMENT OF DONALD C. KNAPP ON BEHALF OF G. H. BIRDSALL, ASSISTANT ADMINISTRATOR OF LEGISLATION; L. A. LAWLOR, OFFICE OF LEGISLATION; DR. W. B. DYESS, CHIEF, CLAIMS STATISTICS SERVICE; M. F. HALL, VETERANS' CLAIM SERVICE.

Mr. KNAPP. I am appearing this morning in the absence of Mr. Birdsall, who is on official business out of the City.

I have with me Mr. L. A. Lawlor, also of the Office of Legislation; Dr. W. B. Dyess, Chief of the Claims Statistics Service; and Mr. M. F. Hall, representing the Veterans' Claim Service.

You have, I believe, Mr. Chairman, inserted in the record the Veterans' Administration report on H. R. 1083. That is typical of the several bills now before the committee. With your permission, I will follow the report on that bill.

H. R. 1083 proposes that

all monthly rates of compensation and pension payable to veterans and their dependents, and to dependents of deceased veterans which are payable under any laws or regulations administered by the Veterans' Administration are hereby increased by 15 per centum: Provided, That such increase shall not apply to subsistence allowances payable under Public Laws 16 and 346, Seventy-eighth Congress, as amended.

The bill, if enacted, would authorize an increase of 15 percent in the rate of compensation or pension payable to veterans and dependents of deceased veterans of the Mexican War, Indian wars, Civil War, Spanish-American War, including the Boxer Rebellion and Philippine Insurrection, World War I, World War II, and of peacetime service.

It does not appear that the bill contemplates an increase in other than cases having entitlement under public laws. If the bill is intended to cover cases having entitlement under private laws, it should be clarified in this respect.

The majority of cases now on the rolls are receiving compensation and pension under Public, No. 2, Seventy-third Congress, as amended, and the Veterans Regulations issued pursuant thereto, and the bill, if enacted, would increase the monthly rates of disability compensation for service-connected conditions prescribed by paragraph II, part I, Veterans Regulation No. 1 (a), as amended.

The basic rates under this paragraph were last increased by Public Law 339, Eighty-first Congress, October 10, 1949. The proposed increases in the present rates are shown in a table contained in our report. I will not repeat all of them, but they range from the present 10-percent rate of $15, increased to $17.25, to the 100-percent total disability rate which is at present $150 and would be increased to $172.50.

If the disabled person has suffered the anatomical loss or loss of use of one foot, or one hand, or blindness of one eye, having only light perception, the above basic rates are increased by $42. Rates ranging from $240 to $360 per month are provided for the loss or loss of use of two or more extremities, certain degrees of blindness, combinations of such disabilities, and total deafness in combination with total blindness. Under the provisions of the bill, the $42 rate would be increased to $48.30, and the other rates would be increased from $276 to $414, respectively.

Section 1 of Public Law 877, Eightieth Congress, July 2, 1948, as amended by Public Law 339, Eighty first Congress, October 10, 1949, provides additional compensation on account of dependents in the case of a veteran having a disability incurred in or aggravated by service as provided in part I, or paragraph I (c), part II of Veterans Regulation No. 1 (a), as amended, who is rated at not less than 50 percent.

The report also contains a table showing the increases in these additional allowances for dependents that would be effected by the bill. At this point I might mention that this particular benefit, under Public Law 877, as amended, is currently the subject of other bills pending before the committee, and was the subject of a hearing before a subcommittee yesterday contemplating a reduction or a liberalization of the present disability requirement as a basis for additional

allowances.

As indicated, the law now requires that the veteran be at least 50 percent disabled. If and while the veteran is rated partially disabled, but not less than 50 percent, the additional compensation authorized on account of dependents is in an amount having the same ratio to the amount provided for total disability as the degree of disability bears to the total disability. The pending bills on this subject would liberalize the requirement so as to authorize additional allowances for all veterans with dependents who are receiving compensation in any amount, proportionate to the degree of disability from 10 to 100 percent.

H. R. 1083, if enacted, would also increase the rates for serviceconnected disability under the World War Veterans' Act, 1924, as restored with limitations by Public, No. 141, Seventy-third Congress, March 28, 1934. These rates are generally comparable with the rates provided under the Veterans Regulations, except as to statutory awards such as the $60 monthly award provided for service-connected arrested tuberculosis, and $30 monthly award for loss or loss of use of a creative organ. These two special awards are now payable only to World War I veterans. However, the House of Representatives, on April 17, 1951, passed two bills which would extend these two benefits to World War II veterans.

The enactment of H. R. 1083 would also effect an increase in compensation rates for disability incurred in peacetime service because paragraph II, part II, Veterans Regulation No. 1 (a), as amended by Public Law 876, Eightieth Congress, July 2, 1948, provides that the peacetime rates of disability compensation shall be 80 percent of the wartime rates.

Subparagraph I (c), paragraph I, part II, of Veterans Regulation No. 1 (a), as amended, provides that any veteran or the dependents of any deceased veteran otherwise entitled to compensation under part II of Veterans Regulation No. 1 (a), as amended, or the general pension law, shall be entitled to receive the rate of compensation provided in part I of such regulation, that is, the wartime rate, if the disability or death of such veteran resulted from an injury or disease incurred in line of duty (1) as the direct result of armed conflict, or (2) while engaged in extra-hazardous service, including such service under conditions simulating war, or (3) while the United States is engaged in war.