Sec.

1608.1. Same; additional number of cadets provided for. [New.]

1620.1. Same; deduction from income tax allowed for contributions to veterans' organizations under Revenue [New.]

Act of 1936. 1622.1. Payments of benefits exempt from taxation, not subject to assignment, attachment, levy, or seizure; exceptions as to converted insurance and claims of the United States. [New.]

1623.1. Federal employment service for veterans. [New.] 1626. Florida hurricane of Sept. 2, 1935; relief for World War veterans injured or killed; their dependents. [New.] Settlement of claims of officers and enlisted men for extra pay provided by Act of January 12, 1899. [New.]

1627.

1606. Officers who served during World War entitled to appointment in Reserve Corps. Any person who has been an officer of the Army of the United States at any time between April 6, 1917, and June 30, 1919, or who has been an officer of the Regular Army at any time, if qualified, may be appointed in the Officers' Reserve Corps in the highest grade which he held or any lower grade. (June 3, 1916, c. 134, s. 37, 39 Stat. 189; May 12, 1917, c. 12, 40 Stat. 73; June 4, 1920, c. 227, subchapter I, s. 32, 41 Stat. 775; Sept. 22, 1922, c. 423, s. 2, 42 Stat. 1033; June 15, 1933, c. 87, s. 3, 48 Stat. 154; June 12, 1934, c. 467, 48 Stat. 939; 10 U. S. C. 353.)

1607. Preference of World War veterans to appointment in peace-time establishments. In time of peace appointments in the Infantry, Cavalry, Field Artillery, Coast Artillery, and Air Corps shall be limited to former officers of the Army, former officers of the National Guard of the United States, graduates of the Reserve Officers' Training Corps, as provided in section 47b hereof; warrant officers, and enlisted men of the Regular Army, National Guard of the United States, and Enlisted Reserve Corps and persons who served in the Army at some time between April 6, 1917, and November 11, 1918. (June 3, 1916, c. 134, s. 37, 39 Stat. 189; May 12, 1917, c. 12, 40 Stat. 73; June 4, 1920, c. 227, subchapter I, s. 32, 41 Stat. 775; Sept. 22, 1922, c. 423, s. 2, 42 Stat. 1033; June 15, 1933, c. 87, s. 3, 48 Stat. 154; June 12, 1934, c. 467, 48 Stat. 939; 10 U. S. C. 353.)

1608.1. Same; additional number of cadets provided for.-Hereafter there shall be allowed at the United States Military Academy three cadets for each Senator, Representative, Delegate in Congress, and Resident Commissioner from Puerto Rico, one to be selected by the Governor of the Panama Canal Zone,

from among the sons of civilians of the Panama Canal Zone and the Panama Railroad, resident on the zone, five for the District of Columbia, and one hundred and thirty-two from the United States at large, forty of whom shall be appointed on the recommendation of the academic authorities of the "honor schools" as designated by the War Department, and three of whom shall be selected from persons recommended by the Vice President, in addition to the number now authorized to be appointed from the enlisted men of the Regular Army and National Guard, and the sons of deceased officers, soldiers, sailors, and marines. (June 7, 1935, c. 201, 49 Stat. 332; 10 U. S. C. 1091b.)

HISTORICAL NOTE

This is "An Act To provide for an additional number of cadets at the United States Military Academy, and for other purposes."

1609. Preference of World War veterans (dentists) in purchase of surplus dental outfits from War Department.

The U. S. C., 1934 edition, reference to this section is 10 U. S. C. 1266.

1615. Half fare railroad rates granted members of Vets. Adm. homes and hospitalized beneficiaries of Vets. Adm.

(a) The portion of this statute omitted and designated by asterisks includes inmates of State Homes for Disabled Volunteer Soldiers and of Soldiers' and Sailors' Orphan Homes.

(b) The portion of this statute omitted and designated by asterisks includes inmates of hospitals and charitable and eleemosynary institutions, and persons exclusively engaged in charitable and eleemosynary work; indigent, destitute and homeless persons, and to such persons when transported by charitable societies or hospitals and necessary agents employed in such transportation; inmates of State Homes for Disabled Volunteer Soldiers and of Soldiers' and Sailors' Homes.

NOTES OF DECISIONS

[NOTE. The following cases (with the exception of the last two) represent constructions of s. 22, WWVA [s. 1622] prior to its repeal but are annotated under this Section because of the similarity of its provisions to s. 1622.]

(Trotter

Taration. The exemption from taxation of compensation paid by the United States to its disabled veterans and of disability benefits under a policy of war risk insurance, conferred by the Act of June 7, 1924, chap. 320, s. 22, 43 Stat. at L. 613, U. S. C. title 38, s. 454 (s. 1622], is lost when the money is converted into land and buildings. v. Tennessee, 78 L. Ed. 358.) [See Lawrence v. Shaw, post.] Exemptions from taxation are not to be enlarged by implication if doubts are nicely balanced; but, on the other hand, they are not to be read so grudgingly as to thwart the purpose of the lawmakers. (Id.) The exemption from taxation of compensation and war risk insurance disability benefits to a mentally incompetent veteran, conferred by the Act of June 7, 1924, chap. 320, s. 22, 43 Stat. at L. 613, U. S. C. title 38, s. 454, (s. 1622] is not enlarged by the fact that payment is made to his guardian. (Id.)

Creditors' claims.-State held entitled to recover of insane person's guardian, for use of state hospital, entire cost of care, treatment, and maintenance of insane person committed to hospital as indigent patient, as determined by hospital directors, both for period before and period after insane person ceased to be indigent, and regardless of time when insane person's guardian was notified of state's claim. (State Hospital at Raleigh v. Security Nat. Bank, 178 S. E. 487; Certiorari denied, 79 L. Ed. 1704.)

Insane person's estate held subject to claim of state hospital for care and maintenance, notwithstanding that estate consisted of securities purchased by insane person's guardians with compensation awarded to insane person as Army veteran. (Id.)

Statute providing for recovery of cost of care and maintenance of persons admitted to designated charitable institutions of state as indigent, where such persons cease to be indigent, held not unconstitutional, notwithstanding statute provides for recovery for care and maintenance furnished before indigence ceased. (Id.)

Guardian held not "creditor" within statutes exempting payments of compensation and insurance to veterans from claims of creditors, since ward's estate has no obligation to pay certain amount of compensation to guardian and amount is discretionary with court of appointment. (Hines v. McKenzie, 250 N. W. 687.)

Allowance of compensation to guardian for care and support of ward did not bar application of guardian for compensation for extraordinary services. (Id.)

Guardian of incompetent veteran properly applying to court for compensation for extraordinary services, giving notice to Veterans' Administration, and submitting evidence of such services, held entitled to compensation absent contradictory evidence by Administrator of Veterans' Affairs. (Id.)

Claim by guardian de jure for reimbursement for expenses incurred while acting as guardian de facto was not "creditor's claim", and hence was subject to reimbursement from funds received by ward from Veterans' Administration, since it was an allowance or credit sought in an accounting presented in regular course by guardian de jure, in which accounting on equitable principles guardian should be allowed for all proper disbursements for benefit of ward. (In re Giambastiani's Estate, 37 Pac. (2d) 142.)

Without previous de facto guardianship, advances made or claims created against ward may not be paid out of funds derived from Veterans' Administration, but advances properly made by guardian de jure in course of his administration may be paid from that source since funds are only exempted from claims of creditors of veteran. (Id.) If items for which reimbursement was sought by guardian of insane person, and which represented advances made and expenses incurred for use of insane person by guardian while acting as guardian de facto, were of such character as would warrant their allowance had they arisen during guardianship de jure, then they did not constitute "creditor's claim," and hence were subject to reimbursement from funds received by insane person from Veterans' Administration. (Id.) Claim by de facto guardian for expenditures on behalf of ward set up in his subsequent accounting as guardian de jure is not "claim of a creditor" within Veterans' Act providing that compensation, insurance, and maintenance and support allowance payable to veteran shall not be subject to claims of creditors, but is a charge arising during administration of ward's affairs and estate as if under a de jure guardianship. (Id.)

As respects brother's right to reimburse himself for expenses incurred from funds received by insane brother from Veterans' Administration, finding that brother acted as guardian de facto, or as trustee of his insane brother from 1919 to time of acquiring his de jure status in 1929, would not be disturbed, where transcript of evidence revealed substantial evidence to support finding. (Id.)

Same; construction of State law.-Estate of insane person who was sentenced to prison and subsequently ordered transferred to hospital for insane upon finding of insanity held not liable for his maintenance while confined in hospital, since insane person was confined pursuant to his sentence. (In re Gardner, 264 N. W. 647.)

Deposits of veterans' checks.-Immunity from taxation attaches to bank credits of a veteran or his guardian which do not represent or flow from his investments but result from the deposit of warrants or checks received from the Government when such deposits are made in the ordinary manner so that the proceeds of the collection are subject to draft upon demand for the veteran's use. (Lawrence v. Shaw, Opinion of the Supreme Court of the United States, No. 549, October term, 1936; decided March 1, 1937.) [See Trotter v. Tennessee, ante.] Provisions of 1935 Act compared with Sec. 22, WWVA.-The Act of August 12, 1935 [above section], providing that payments shall be exempt from taxation and shall not be liable to process "either before or after receipt by the beneficiary" is more specific than sec. 22 of the World War Veterans' Act, 1924, as amended (s. 1622]. Its provision was intended to clarify the provision of the WWVA rather than to change its import, and it was with that purpose that it was made retroactive. (Id.)

Set-off, indebtedness arising out of embezzlement of government funds.-Benefits due and payable to a veteran or his estate under veterans' legislation other than the World War Adjusted Compensation Act, as amended, or the Adjusted Compensation Payment Act, 1936, 49 Stat. 1099, may be applied against the veteran's indebtedness to the United States arising from his embezzlement of Government funds, but benefits payable to the beneficiary of his insurance may not be so applied. (15 Comp. Gen. 1133.)

Funds to be distributed under section 308 (1) of the WWACA.-Are payable to the person or persons found entitled thereto without deduction on account of any claims of creditors and not liable to attachment, levy, or seizure other than as to the exceptions specifically provided for in this section. Existing regulations (R. & P. R-3722) are to be applied so that any claim of a State or any preferred or other claim of any creditor under any State law is not deductible from amounts payable to the person or persons who in the line of descent under the State laws, in the absence of any claims against the estate, would take the personal property of the decedent in case of intestacy. (A. D. 355.) Exception to foregoing rule where deceased veteran leaves no heirs.— Proceeds of Adjusted Service Certificate may be used to pay debts of veteran's estate which have been approved by Probate Court in case there are no heirs capable of inheriting his estate. Question is analogous to that presented in A. D. 378 except that decision deals with insurance rather than adjusted compensation benefits. 382.)

(A. D.

Effect of section on claim of veteran for back pension for the year 1934 under section 30 of Pub. No. 141, 73d Cong., which had been denied him because he was not exempt from the payment of a Federal income tax for the year 1933.—(A. D. 370.)

Payment of term insurance under section 303, WWVA, where there are no heirs and next of kin but where creditors' claims have been approved and passed before probate court.-(A. D. 378.)

1623.1. Federal employment service for veterans.(a) It shall be the province and duty of the bureau to promote and develop a national system of employment offices for men, women, and juniors who are legally qualified to engage in gainful occupations, to maintain a veterans' service to be devoted to securing employment for veterans, to maintain a farm placement service, to maintain a public employment service for the District of Columbia and, in the manner hereinafter provided, to assist in establishing and maintaining systems of public employment offices in the several States and the political subdivisions thereof in which there shall be located a veterans' employment service. The bureau shall also assist in coordinating the public employment offices throughout the country and in increasing their usefulness by developing and prescribing minimum standards of efficiency, assisting them in meeting problems peculiar to their localities, promoting uniformity in their administrative and statistical procedure, furnishing and publishing information as to