Two additional tables are incorporated below. "Service-Connected Death Benefits Payable to Dependents of Deceased Veterans of the Regular Establishment and of the World War under Existing Laws and Regulations Compared with Rates Proposed by S. 3503, Seventy-fifth Congress, and with 60 percent of the War Time rates," and "Regular Establishment Veterans on the Rolls January 31, 1938, Showing Rate of Pension Being Paid (Service Prior to 1898 not Included)." These tables are included to supplement statements relating thereto made at the hearings on H. R. 8948 and S. 3503.

Regular Establishment veteruns on the rolls January 31, 1938, showing rate of pension being paid

1 Includes Regular Establishment cases paid wartime rates under par. 1 (c) of pt. II of Veterans Regulation 1 (a) as amended.

Source: Budget and Statistics, Mar. 10, 1938.

See footnotes end of table.

4 Equally divided.

At the hearings conducted before the Committee on Pensions, House of Representatives, June 8, 1938, on H. R. 8948 and S. 3503, it was requested by the legislative representative of the Veterans of Foreign Wars, Mr. Millard Rice, that there be inserted in the hearings an estimate of cost if the pension rates for the Regular Establishment under part II of Veterans Regulation No. 1 (a), as amended, were increased to 90 percent of the pension rates provided under part I of Veterans Regulation No. 1 (a), as amended (wartime service-connected rates). The estimate is as follows:

It is estimated that the payment of Regular Establishment veterans at 90 percent of the rates provided in part I of Veterans Regulation No. 1 (a), as amended, would involve an additional annual cost of approximately $5,946,000 for approximately 30,000 cases where service was subsequent to April 21, 1898, and $319,000 annually for approximately 1,000 cases where service was prior to April 21, 1898, or a total of $6,265,000 for veterans for the first year.

To pay the dependents of Regular Establishment veterans at 90 percent of the rates provided under part I of Veterans Regulation No. 1 (a), as amended, would cost approximately $489,000 for cases where service was subsequent to April 21, 1898, providing increased benefits for the dependents of approximately 7,600 veterans. In addition, there would be 300 cases where increased benefits would be paid for service prior to 1898 at an additional cost of approximately $21,600 or a total cost for dependents of approximately $510,600 the first year affecting approximately 7,900 cases.

The total cost of this bill would approximate $6,775,600 the first year, providing increases for 31,000 veterans and the dependents of 7,900 deceased veterans.

SUPPLEMENTAL INFORMATION FOR HEARINGS ON H. R. 8948 AND S. 3503

In order that data pertaining to the study of Regular Establishment benefits may be more complete for reference purposes, there are included below two acts, the provisions of which were recommended by the Veterans' Administration after advice had been received from the Acting Director, Bureau of the Budget, that such proposed legislation would be in accord with the program of the President. These acts are included for the reason that the legislation was proposed as result of study of the general subject.

PUBLIC, NO. 357, SEVENTY-FIFTH CONGRESS, APPROVED, AUGUST 25, 1937

In response to a request from the chairman, Committee on Pensions, House of Representatives, March 27, 1937, a report was furnished on a draft of proposed legislation which had for its purpose an amendment to paragraph X of Veterans Regulation No. 10 Series, promulgated by the President under Public, No. 2, Seventy-third Congress, March 20, 1933, which precluded the payment of pension or emergency officers' retirement pay, concurrently with salary as an employee of the United States Government, or the municipal government of the District of Columbia, or any corporation the majority of the stock of which is owned by the United States, with certain exceptions.

The proposed draft would have excepted Regular Establishment pensions from the limitation therein contained. After careful consideration of this matter the Veterans' Administration in its report of July 14, 1937, after securing concurrence of the Acting Director, Bureau of the Budget, recommended repeal of paragraph X, Veterans Regulation No. 10 series. This action was taken in view of the injustices which resulted from its retention and considering the fact that under legislation enacted subsequent to promulgation of the regulation and affecting the far majority of cases this limitation was not for application. H. R. 7531, Seventy-fifth Congress, was introduced by the chairman of the Pensions Committee containing the repeal language suggested and was enacted into law as heretofore stated August 25, 1937. This liberalization principally affected the Regular Establishment cases.

PUBLIC, NO. 648, SEVENTY-FIFTH CONGRESS, APPROVED, JUNE 16, 1938

The Veterans' Administration was requested by the chairman, Committee on Pensions, House of Representatives, to report on H. R. 7880, a bill to amend paragraphs VIII and IX of Veterans Regulation No. 10 series, promulgated by the President under Public, No. 2, Seventy-third Congress, March 20, 1933. After consideration of this particular bill, and in light of the studies conducted, the Veterans' Administration, under date of March 11, 1938, in a report to the chair