trator of Veterans' Affairs under such regulations as it may prescribe, but the said State or Territorial homes shall be exclusively under the control of the respective State or Territorial authorities, and the Administrator shall not have nor assume any management or control of said State or Territorial homes. The Administrator of Veterans' Affairs shall, however, have power to have the said State or Territorial homes inspected at such times as it may consider necessary, and shall report the result of such inspections to Congress in its annual report: Provided, That no State shall be paid a sum exceeding one-half the cost of maintenance of each soldier or sailor by such State: Provided further, That one-half of any sum or sums retained by State homes on account of pensions received from inmates shall be deducted from the aid provided for in this section. No money shall be apportioned to any State or Territorial home that maintains a bar or canteen where intoxicating liquors are sold: Provided further, That for any sum or sums collected in any manner from inmates of such State or Territorial homes to be used for the support of said homes a like amount shall be deducted from the aid provided for in this section, but this proviso shall not apply to any State or Territorial home into which the wives or widows of soldiers are admitted and maintained. AMENDMENTS, EFFECTIVE DATE First paragraph was amended by act August 1, 1939, cited to text, by substituting "$240 per annum" in lieu of "$120 per annum." Section 2 of said act provided as follows: "SEC. 2. The amendment made by this act shall apply to payments with respect to the care given to disabled soldiers and sailors on and after the first day of the month next following the month during which this act is enacted: Provided, That said payments shall be made regardless of whether said veteran may be receiving domiciliary care or hospitalization in said home and the appropriations of the Veterans' Administration for medical, hospital, and domiciliary care shall be available for this purpose: Provided further, That no payment to a State or Territory under this Act shall be made for any period prior to the date upon which the Administrator of Veterans' Affairs determines that the veteran on whose account such payment is requested is eligible for such care in a Veterans' Administration facility." The CHAIRMAN. We have here, gentlemen, a letter from the Veterans' Administration, under date of April 21, 1943, that I will read for the information of the committee members. (The chairman read the following letter:) MY DEAR SENATOR REYNOLDS: Further reference is made to your letter dated March 12, 1943, requesting a report on S. 861, Seventy-eighth Congress, a bill to increase the amount of Federal aid to State or Territorial homes for the support of disabled soldiers and sailors of the United States. The purpose of the hill is to authorize an increase in the amount of Federal aid to State or Territorial homes for the support of each disabled soldier and sailor of the United States from $240 per annum to $540 per annum. The increase would be applicable to payments with respect to the care given to disabled soldiers and sailors on and after the first day of the month next following the month in which the bill is enacted whether receiving domiliciary care or hospitalization, but no payment at the increased rate would be made for any period prior to the date upon which the Administrator of Veterans' Affairs determined that the veteran on whose account such payments is requested was eligible for such care in a Veterans' Administration facility. The appropriations of the Veterans' Administration for medical, hospital and domiciliary care would be available for the purpose of paying the increased aid provided by the bill. Public, No. 250, Seventy-sixth Congress, approved August 1, 1939, increased the allowances to State and Territorial homes for the support of disabled soldiers and sailors of the United States from $120 to $240 per annum. Apparently, the main reason for requesting an increase in the Federal aid payments at this time is due chiefly to the increased cost of maintaining State soldiers' homes. There has been an increased cost for such maintenance since 1939 but, in the opinion of the Veterans' Administration, not in an amount sufficient to justify an increase of 125 percent over the amount presently authorized. After careful consideration of the matter it is believed that under existing circumstances an increase of the present allowance of $20 per month to $25 per month, which would increase the allowance of $240 per annum to $300 per annum, would be sufficient to offset any increased cost of maintaining veterans in State homes. The Veterans' Administration would recommend favorable consideration of such increase. It is estimated that the cost of increasing Federal aid to State homes from $240 to $540 for each veteran who will receive domiciliary care or hospitalization in such homes during the fiscal year 1944 would be $1,700,000. It is estimated that the cost of increasing Federal aid to State homes from $240 to $300 per annum for the fiscal year 1944 would be $340,000. In view of the foregoing, the Veterans' Administration is unable to recommend favorable consideration of the bill, but if it were amended to substitute $300" for "$340," the Veterans' Administration would recommend favorable consideration of the bill as so amended. Advice has been received from the Bureau of the Budget that there would be no objection by that office to the submission of this report to your committee, as it is not believed that the enactment of the proposed legislation, in its present form, should be considered as being in accord with the program of the President. Very truly yours, FRANK T. HINES, Administrator. The CHAIRMAN. Now we have a letter here from the Governor of Indiana, under date of May 18, 1943, directed to one of our colleagues, the Honorable Raymond E. Willis, United States Senator, which I will read. (The chairman read the following letter:) Hon. RAYMOND E. WILLIS, Senate Office Building, Washington, D. C. STATE OF INDIANA, MY DEAR SENATOR: On August 4, 1939, President Roosevelt signed H. R. 4647, which increased the allowance made by the Federal Government to State soldiers' homes and hospitals. The increase was from 33 cents to 66 cents per day per veteran. The original bill called for an allowance of $1 a day. However, there was a compromise to 66 cents, and this was the first increase these State homes had received since their inception in 1888. At that time the 33 cents a day from the Federal Government covered 66 percent of the total cost of maintenance. The present Federal Government contribution, 66 cents per day, covers only 21 percent of the actual cost of maintenance of the soldiers' home here in Indiana, and I think that is also true of the 27 homes in the other 24 States that maintain them. The average daily population at the soldiers' home for the fiscal year 1941-42 was 476.97, while the Government's contribution was based on an average of approximately 270.17-so you see that not all of the members of the home are eligible for the Federal Government contribution. Last year the expenses of the soldiers' home in Indiana were $281,754.48. We were reimbursed to the extent of $59,086.14 by the Federal Government for the members on the Federal rolls as accepted by the Veterans' Administration. This left a net cost to the State of Indiana of $222,668.34 for the care of its veterans. The 25 States that maintain State homes and hospitals for veterans care for a large number of veterans who come within the scope of the Veterans' Administration facilities. If these States were not caring for these cases, the entire cost would have to be borne by the Federal Government. The States should be reimbursed for at least half of the cost for the maintenance of veterans in the State home or hospital. Bills have been introduced at this session of Congress for further reimbursement to the States. One of these, S. 861, was introduced by Senator Walsh. A companion bill has been introduced in the House of Representatives, H. R. 2202, by Congressman Lane. I understand that there will be a hearing on this bill before the Military Affairs Committee, and it would be appreciated if an early date could be arranged for same. The bill has a great deal of merit as the increase in cost of maintaining these homes and hospitals has been exceptionally large. It would be deeply appreciated by the State of Indiana if you would interest yourself in the matter and lend your aid to the present measure. It would ease the burden of the State taxpayer. Very cordially yours, HENRY F. SCHRICKER, Governor. The CHAIRMAN. And here is a letter from the Governor of Wyoming, pertaining to the same subject, which I will read for the information of the gentlemen of the committee. This is addressed to our colleague, Senator O'Mahoney, under date of April 5, 1943, by Mr. Hunt, Governor of Wyoming, Cheyenne, Wyo. (The chairman read the following letter:) Hon. JOSEPH C. O'MAHONEY, Hon. E. V. ROBERTSON, Hon. FRANK A. BARRETT, Washington, D.C. CHEYENNE, Wyo., April 5, 1943. GENTLEMEN: A bill has been introduced by Senator Walsh in the United States Senate, S. 861, to increase the amount of Federal aid to State or Territorial homes for the support of disabled soldiers and sailors of the United States. Companion bills have also been introduced in the House of Representatives by Congressman Lane, of Massachusetts, H. R. 2202, and Congressman Rankin, H. R. 2000, and in the Senate by Senator Vandenberg, S. 792. I am sure you will understand that this bill would be very beneficial to the State of Wyoming and would assist us in the maintenance of the Soldiers' and Sailors' Home at Buffalo. In 1939 a bill calling for $1 per day per veteran was introduced. Congress reduced the amount to 36 cents per day and passed the measure as it was amended. This, of course, does not nearly cover the cost to the State of maintaining these veterans, but it helps appreciably. The increased costs of foods and medicines, and especially increased salaries of the employees, is, I feel, sufficient reason for asking an increase in the Federal Government's participation in the care of our veterans. The present bill as introduced would raise the Federal grant from $240 to $540 per veteran per year. While naturally the State would like to see this bill pass in its present form, it occurs to me that the payment by the Federal Government of $1 per day per veteran would be very fair and would be not exactly satisfactory but agreeable to our State. It appears that soon veterans of World War No. II will be seeking admission to our institution and will naturally add to our problem, meaning, perhaps, new facilities since our present capacity is only sufficient to meet present demands. As you know, you have just passed a law making these veterans eligible for the same benefits of hospitalization now provided for the veterans of previous wars. Thanking you gentlemen in Washington for assisting us in every way possible to bring about the passage of this legislation and with very best wishes, I am Yours very truly, LESTER C. HUNT, Governor. The CHAIRMAN. Now, the witnesses for this morning are the Honorable Lawrence F. Quigley, commandant of the Soldiers' Home, Chelsea, Mass., and some gentlemen representing the Veterans' Administration. If Mr. Quigley will come around we will be very glad to hear him. STATEMENT OF LAWRENCE F. QUIGLEY, COMMANDANT, SOLDIERS' HOME, CHELSEA, MASS. Mr. QUIGLEY. Mr. Chairman and members of the committee: The Federal Government in 1888, as has been stated in some of these letters, first made provision for contributions to the State govern ments for the maintenance of soldiers' homes. At that time the cost of maintaining the veterans in one of these homes was 51 cents a day. The Federal Government made a contribution of 33 cents a day, which is about sixty-odd percent of the maintenance of the home. There was no increase in that until 1939, when there was a bill introduced, but there has been one introduced practically every session for 10 years since 1938 for an increase and no favorable action had been taken on it until 1939, when it was then increased to 66% cents a day from 33 cents. Senator GURNEY. What was your cost then? Mr. QUIGLEY. The cost then to the State soldiers' homes was $2.81 a day. To the Federal homes for domiciliary care, General Hines said it was 92.8. Ours was including hospital care. Their hospital cost averages about $5.15 a day for the maintenance of the veteran in the veterans' facility, so that would leave a net cost of about $3.40 a day to the veterans' facility. They had been paying us 33 cents, but the increase was 66 cents, and this bill that is introduced now is asking for $1 a day. It is now costing them in Togus, Maine, $1.88 against 92 cents a day in 1939, and $5.45, I think, for the maintenance of a veteran in one of their hospitals. Senator TRUMAN. Why does it cost so much more to maintain them in Federal homes rather than in State homes? Mr. QUIGLEY. It costs $2.81, that is including hospital care. They differentiate between their domiciliary care and the hospital care. Ours is thrown in together. Our maintenance cost probably for domiciliary care would be about the same cost as the veterans' facility, perhaps a little bit less, when you figure our cost is $2.81, including hospital care, and that in the veterans' facility cost $5.15 a day. Now, with the increased cost of maintenance and foods, and, of course, naturally the cost of employees, why, it has raised that amount. We feel that the yardstick as set down by the Federal Government in 1888 was perhaps a fair yardstick, but we are not asking for that. A veteran admitted to a State soldiers' home must have the same requirements and requisites for membership as he has in the Veterans' facility. So if these veterans were not in there—which is some 6,000 in number in 1938—it would cost the Federal Government about twomillion-three-hundred-thousand-odd dollars, where it cost them under the present program $750,000, so that the Federal Government is saving over a million and a half dollars. Senator TRUMAN. It all comes out of the same pocket, doesn't it? The taxpayer pays it the same anyway? Mr. QUIGLEY. Well, yes. It is distributed, at least, through the 48 States. In 1938 they had about 2,600 vacant beds and there were 26,000 veterans in the State homes, and there were 3,800 veterans without facilities to be able to go to. That was General Hines' figure at that time, 2,600. So it would leave the veteran without any facilities. Take in Massachusetts, for instance, they have no veterans' facility there. They are now building one with a bed capacity of five hundred-odd beds. It is supposed to be ready in July, but I do not think it will be ready until sometime next year. At the present time they are taking the veterans into the naval hospital at $3.85 a day. 87879-43-2 Senator TRUMAN. Do you take these veterans indiscriminately, or do you limit them to the State? Mr. QUIGLEY. It requires 5 years' residence in the State of Massachusetts, or to have enlisted in the State. That is limited to every State. Senator TRUMAN. It is limited strictly to the State soldiers? Mr. QUIGLEY. To the veterans in the home; yes, sir; unless there is a vacant bed in the State of Massachusetts. If there is a vacant bed we take in a veteran whether he is a resident of Massachusetts or not. We have a 227-bed hospital and 340-bed domiciliary care. The CHAIRMAN. Any questions, Senator? Senator GURNEY. No questions. The CHAIRMAN. Any questions, Senator Lodge? Senator LODGE. Have you completed your statement? Mr. QUIGLEY. Yes, Senator. Senator LODGE. Well now, there has been a sharp increase since 1939. Senator GURNEY. In the number of veterans or in the cost? Senator LODGE. A sharp increase in the cost of maintaining the veterans. Is that right? Mr. QUIGLEY. That is right; and in the number as well, Senator. In other words, we have not reached the peak. It was supposed to be reached in 1945, the number of veterans who will receive domiciliary care, the World War No. 1 veterans in the entire country. The Senate has passed a bill giving the veterans of World War No. 2 the same privileges as the veterans of the Spanish-American War and World War No. 1. They had no place to go to, they were not entitled to veterans' facilities or domiciliary care, even though they had been discharged out of Guadalcanal. If they came back home they had no veterans' facilities to receive treatment, except in the State homes, and the State homes did pass legislation enabling them to take care of those veterans. The veterans' facilities were not reimbursed by those cases. Senator LODGE. Did I understand you to say when the principle of Federal aid for State homes was first set up a different formula or yardstick was established? Mr. QUIGLEY. I would say it was. It was 33 cents at that time, and the cost of the maintenance of the veteran then was 51 cents a day. The Federal Government paid 33 cents of the 51 cents. Senator LODGE. Then, during the years, the share of the Federal Government became less? Mr. QUIGLEY. It became less because of the increase in cost. They did not reduce it at all. Senator LODGE. The ratio was greater? Mr. QUIGLEY. Yes; the ratio was greater. Senator LODGE. What you are asking for in your bill is to return to the ratio that existed in the first place; is that right? Mr. QUIGLEY. Not as great a ratio. That would be a dollar a day, which still would not be the sixty-odd percent that they had given us when they first established it in 1888. Senator GURNEY. What is the cost a day? Mr. QUIGLEY. $2.81 a day. That is for hospitalization and domiciliary care. That is thrown in together. We do not differentiate, we |