This provision makes veterans and the dependents of veterans of all wars eligible for the rates of part I for service-connected disability or death.

Turning to the pension side, we find that part III of Veterans Regulation No. 1 (a), as amended, provides pension for non-serviceconnected permanent total disability at the rare of $60 monthly except that where such veterans shall have been rated permanently and totally disabled and in receipt of pension for a continuous period of 10 years or reach the age of 65 years, the amount of pension is $72 monthly.

Under this bill, if enacted, these rates would be increased to $69 and $82.80, respectively. The pension benefits provided under the said part III are available to veterans of the Spanish-American War, Boxer Rebellion, Philippine Insurrection, World War I, World War II, and, pursuant to the recently approved Public Law 28 of this Congress, they are now available to veterans of active service on or after June 27, 1950, and prior to such date as shall thereafter be determined by Presidential proclamation or concurrent resolution of the Congress. The bill would authorize an increase in the rates payable to the dependents of veterans entitled to compensation based on wartime service-connected death. The report contains a table showing the increases proposed by this bill in the present death compensation rates which are applicable to dependents of veterans of all wars. These rates range, for example, from a present rate of $75 for a widow but no child, increased to $86.25 by the bill, to $106 for a widow with three children, increased to $121. There are further additional rates and increases in such rates for additional children.

The rates for peacetime service-connected death are 80 percent of the wartime rates.

Widows and children of World War I and World War II veteransand veterans of service on or after June 27, 1950-whose deaths are not the result of a service-connected disability are entitled, subject to certain limitations, to pension under the provisions of Public, No. 484, Seventy-third Congress, as amended. The rates of pension payable under this law and the rates as proposed to be increased under the bill are likewise set forth in a table in the report.

Service pensions for Civil War veterans were last increased by Public Law 270, Eightieth Congress, July 30, 1947. This bill would increase the basic Civil War pension rate of $90 to $103.50, and the rate for regular aid and attendance of $120 to $138.

Service pension rates for non-service-connected disability in behalf of veterans of the Indian Wars were last increased by Public Law 398, Eightieth Congress, January 19, 1948. The proposed increases in the present rates are also shown in a table included in the report.

Service pension rates for non-service-connected disability based on service in the Spanish-American War, the Philippine Insurrection, and Boxer Rebellion were last increased by Public Law 270, Eightieth Congress, July 30, 1947. The table also shows the increases which would be effected in those rates by enactment of the bill.

Pensions for the widows and children of veterans of the Civil War, the Indian Wars, the Mexican War, and the Spanish-American War, including the Philippine Insurrection and the Boxer Rebellion, generally range from $36 to $60 for a widow, with additional allow

ances for children and, where there is no widow, from $25.92 to $43.20 for one child, with additional allowances for each additional child. These rates are shown in detail on page 32 of Committee Print No. 173, Eighty-first Congress, a copy of which is enclosed with the report. There is also enclosed a chart showing the rates of compensation and pension payable to World War II and World War I veterans and their dependents from 1940 to date.

The chart is contained in Committee Print No. 119, as well as additional cost estimates from the Veterans' Administration on alternative proposed increases.

The following estimate of the first year's cost of H. R. 1083, Eightysecond Congress, if enacted, includes an increase of 15 percent in compensation and pension rates for all cases anticipated to be on the rolls under public acts. The monetary values cited reflect only the amounts of the increases over and above the amounts currently authorized.

1,705,500 living veterans of World War II would be involved, with increases the first year of $143,221,000.

Mr. Chairman, do you wish me to read all of the breakdown by wars and numbers involved?

Mr. DONOHUE. In view of the fact that all of this information has been made part of the record, I do not think that is necessary.

To summarize, Mr. Chairman, the total involved for veterans the first year would be 2,468,075 living veterans at an increased cost of $233,803,800. With respect to deceased veterans, the total number of dependents involved would be 696, 735 at a cost of $78,200,300. The grand total affected would be 3,164,810 veterans and dependents of veterans at an increased cost, the first fiscal year, of $312,004,100. This estimate does not include any increases which may be involved under Public Law 28, Eighty-second Congress, May 11, 1951.

The Veterans' Administration is not advised as to the relationship of this proposed legislation to the program of the President. Mr. DONOHUE. You say you have not been advised?

Mr. KNAPP. We have not, Mr. Chairman.

Mr. DONOHUE. Have you sought the advice?

Mr. KNAPP. We have, but due to the request for the submission of our report so that it would be available for the subcommittee's consideration, we did not await receipt of that advice from the Bureau of the Budget.

Mr. DONOHUE. When did you make it?

Mr. KNAPP. The request for advice was made last Friday, Mr. Chairman. That would be May 11, I believe.

Mr. DONOHUE. Has the Veterans' Administration any opinion, or what position does the Veterans' Administration take, on these different bills?

Mr. KNAPP. As is consistent with the Administrator's policy, Mr. Chairman, the Veterans' Administration does not take a position on any of these bills, but seeks to give you full information and data as to what groups are involved, the background, what they are entitled to now, and what the increased rates would amount to under the bill. Mr. PROUTY. I have one question that I would like to ask.

I am wondering if you have the percentage, or if you have figures which would indicate the number of veterans who are in the lower classifications of disability who are actually receiving full-time employment now and are, generally speaking, self-supporting.

Mr. KNAPP. Mr. Congressman, I believe a similar question was asked at the hearing yesterday on the bill I referred to, and the response was to this effect: Disability compensation is payable without reference to one's employability in an individual case. Accordingly, there is no record received or made by the agency as to the veteran's employment status. Representatives of the Veterans' Claim Service indicated yesterday that they have no information as to the ratio or percentage of those now on the rolls, the compensation rolls, for service-connected disability, who are now employed.

With respect to pensions which are non-service-connected, we do have information in the files on those cases.

Mr. PROUTY. That is the non-service-connected?

Mr. KNAPP. That is the non-service-connected.

Mr. PROUTY. Can you give me a typical example of what would constitute 10-percent disability?

Mr. HALL. They are set forth in a schedule for rating disability based upon average impairment of earning capacity.

There are numerous conditions. One example would be flat feet with symptoms. That would be a 10-percent disability.

Mr. PROUTY. With symptoms? What does that mean?

Mr. HALL. In other words, pain. Of course, you realize, too, that we do have what we call racial flat feet with the colored race. But we may not use the term "racial" any more. It is just referred to as flat feet. Of course, that is asymptomatic, without symptoms; noncompensable.

Mr. PROUTY. Have you any information as to the increase in the consumer's price index since the last substantial increases and benefits were made?

Mr. KNAPP. I believe, Mr. Congressman, we have made available to the staff certain information that was received from the Department of Labor on that subject.

The committee has printed it as Committee Print No. 63 which I will be glad to insert for the record. I have an extra copy here.

Mr. DONOHUE. If there are no objections, it will be inserted in the record at this point.

TABLE 2.-Average gross weekly earnings in manufacturing 1

1

Mr. KNAPP. As I said, the source of that information is the Department of Labor. The Veterans' Administration itself does not have data on that subject.

Mr. PROUTY. Have you any idea when you will receive the Bureau of the Budget's recommendations in this matter.

Mr. KNAPP. I could not say, Mr. Congressman. We will endeavor to receive it as soon as possible. I assume that, as it involves a very major expenditure, careful consideration will be given to it by the Bureau in connection with the President's fiscal and budgetary program.

Mr. PROUTY. Do you believe that, in view of the increased cost of living, the veterans, at least those in the higher brackets of disability, are experiencing unreasonable difficulty in getting a livelihood? Have you any facts or figures to substantiate that?

Mr. KNAPP. I have no examples, Mr. Congressman. I have heard it asserted by individual veterans.

Mr. PROUTY. It would seem reasonable to assume that it might be the case.

I have no further questions, Mr. Chairman.

Mr. DONOHUE. Thank you very much, Mr. Knapp.

Mr. KNAPP. Thank you, Mr. Chairman.

Mr. DONOHUE. Is there a representative of the American Legion present?

STATEMENTS OF MILES KENNEDY, NATIONAL LEGISLATIVE DIRECTOR, AND CHARLES W. STEVENS, NATIONAL REHABILITATION COMMISSION, THE AMERICAN LEGION

Mr. KENNEDY. Mr. Chairman and gentlemen, my name is Miles Kennedy. I am the national legislative director of the American Legion.

At the outset, I want to state, on behalf of our organization, that we appreciate the opportunity to be heard. I do not intend to offer any testimony personally, but I respectfully request that you permit Mr. Charles W. Stevens, who is the assistant director of our national rehabilitation commission and who is with me, to present our testimony in connection with the legislation that is now receiving your consideration.

Mr. DONOHUE. We will be pleased to hear Mr. Stevens.

Mr. STEVENS. Mr. Chairman and members of the committee, the American Legion appreciates the opportunity to testify in support of legislation which has for its purpose the increase of compensation and pension awards.

There is a vital need for such legislation at this time due to the greatly increased cost of living.

The recommendations which I will make today for the American Legion are the product of thorough study of this important subject by our national rehabilitation commission and national executive committee as well as by our national convention, expressing the will of the several thousand delegates assembled in convention as representatives of the membership of over three million men and women, veterans of World Wars I and II.

H. R. 4078, Eighty-second Congress, first session, was introduced by Mr. Rankin upon the request of the American Legion.

Section 1 of this bill would increase monthly wartime rates of disability compensation payable under laws administered by the Veterans' Administration.

In view of the enactment of Public Law 28, Eighty-second Congress, on May 11, 1951, the following substitute language for this section is recommended:

That all monthly wartime rates of disability compensation which are payable under any laws or regulations administered by the Veterans' Administration are hereby increased by 10 per centum.

That is, we would recommend striking the language of the section following the enacting clause, and the adoption of the substitute.

Those to benefit by this increase in rates are (1) service-connected disabled veterans of World Wars I and II; (2) such veterans of other wars as are in receipt of compensation for service-connected disabilities; (3) veterans with peacetime service-connected disabilities entitled to compensation at wartime rates because of the circumstances under under which their disabilities were acquired; and, by virtue of the enactment of Public Law 28 by this Congress, (4) veterans whose disabilities are service-connected because of incurrence in or aggravation by active military service on or after June 27, 1950, and prior to such date as shall thereafter be determined by concurrent resolution of the Congress or by proclamation of the President.

This 10-percent increase would apply to all monthly wartime rates of disability compensation, including statutory awards and allowances and the additional compensation payable for dependents.

Section 2 of the bill would increase monthly wartime rates of death compensation payable under laws administered by the Veterans' Administration.

The adjustments recommended can be best illustrated by citing the present and proposed rates, which are:

Widow, present, $75; proposed, $85. Widow with one child, present, $105; proposed, $120. Each additional child, present, $25; proposed, $30.

Children where there is no widow, total payable equally divided: One child, present, $58; proposed, $70. Two children; present, $82; proposed, $100. For three children, present, $106; proposed, $130. For each additional child, present, $20; proposed, $30. Dependent mother or father, or both, each at present, $35; proposed, $40.