[Copy] Hon. FRANK T. HINES, Administrator of Veterans' Affairs, DEPARTMENT OF THE NAVY, United States Veterans' Administration, Washington, D. C. SIR: Receipt is acknowledged of your letter of May 7, 1938, with reference to certain information for use in consideration of an increase in pension rates for veterans of the Regular Establishment. In compliance with your request, there is enclosed herewith table showing schooling of recruits. I am indeed sorry for the delay in replying, but I have been out of town and did not receive your letter until this morning. Trusting that this delay has not inconvenienced you and that the attached information will be satisfactory, I am Respectfully yours, Memorandum for Captain Abbett. H. J. ABBETT, MAY 10, 1938. The following table completes the report on the schooling of recruits, submitted by Mr. Smith on May 3, by showing separately the number of men completing grades 8, 9, 10, and 11 for the period July to December, inclusive, 1937. The total number entering but not completing high school is 3,510 or 42.7 percent. How many disabled Regulars are added to the pension rolls each year?—The annual report of the Administrator of Veterans' Affairs (1938) indicates there were 2,591 terminations of pensions for Regulars and 285 terminations for dependents of line-of-duty deceased Regulars. In the annual report of the Administrator of Veterans' Affairs (1937) there is shown to be on the rolls: 32,230 line-of-duty disabled Regulars, 12,209 dependents of line-of-duty deceased Regulars; the annual report for 1938 shows there are on the rolls: 32,282 line-of-duty disabled Regulars, 13,243 dependents of line-of-duty deceased Regulars; the same report shows terminations: 2,591 of line-of-duty disabled Regulars, 285 dependents of line-of-duty deceased Regulars; or an increase on the pension rolls of 3,962. The latest report from the Veterans' Administration indicates there is an average of 224 line-of-duty disabled Regulars and 120 dependents of line-of-duty deceased Regulars being added to the rolls each month. Why should pensions be much higher than average pay?—The attention of the committee is respectully invited to the following tables which have been lifted from hearings on the bill H. R. 8948 (75th Cong.): Classification of all peacetime veterans on rolls January 31, 1938: Regular Establishment subsequent to 1898 Spanish War changed to peacetime___ == World War changed to peacetime. Regular Establishment prior to 1898_ Special acts____. Total (tabulated) __ Total (summary report)--- 1 Excludes 8,206 veterans added to rolls under the new law. Excludes 2,877 veterans dropped from rolls under Public, No. 2. Source: Budget and Statistics, March 10, 1938. 21, 331 27 9, 577 1, 022 794 32, 751 31, 805 Analysis of age and length of service of Regular Establishment veterans on rolls 1 Excludes veterans previously paid as World War or Spanish War cases. ? Does not include 108 cases on which no age was given. 3 Average age at discharge, 27. 3,924 8, 557 18. 49 40.32 3,969 18.70 4, 187 19. 73 544 2. 56 42 .20 21, 223 Regular Establishment veterans on the rolls Jan. 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. Analysis. The committee will note from the length-of-service table, above, that 10,878 of the disabled Regulars (well over half) were disabled on their first 3 years of service and that 18,056 were disabled within the first 6 years of service. Referring to the present monthly pension table above, it will be noted that 8,023 Regulars are drawing pension in excess of $22 indicating they are 50 percent or more disabled, excepting for a few amputation and other statutory cases where additional rates are paid for loss of limb or sight. Referring to the age-at-discharge table above, it will be noted that well over 75 percent are disabled between the ages of 20 and 29 with average age at disability discharge of 27 years. Table 24, 1938, annual report of the Administrator of Veterans' Affairs, gives the average age of disabled Regulars as 41.81, an increase of 1.36 years over the 1937 report which was 40.45. Referring to age-in-1938 table above, the average age in 1938 was 39 years. The average age of World War veterans is given in the Administrator of Veterans' Affairs report for 1938 as 45.37 years. Average active-duty pay (all allowances considered and all services combined) for service personnel on their first 6 years of service can reasonably be set at a minimum of $600 per annum. (A recruit on his first enlistment draws approximately $504 per annum in pay and allowances.) Table No. 23, subtable No. 2, annual report of the Administrator of Veterans' Affairs, sets the average pension for disabled Regulars at $20.50 per month, an increase of but $0.08 over the 1937 report. A disabled Regular immediately upon discharge and by virtue of his serviceincurred disability, suffers a reduction in income of approximately $350 per annum (based on average service pay and average disability pension). He must now worry about where his food, quarters, clothes, and other necessities, including minor medical supplies and treatment, etc., are coming from. He is greatly handicapped by his disability and the rehabilitation of a person, particularly one with a disability in this day and age, is a problem. He has served an average of approximately 3.88 years before disability incurrence. His average age is 41.81 years. He cannot compete with the physically fit of the Nation, and, ordinarily, he must learn a new vocation entirely. (We note in the letter above from the War Department that 131 out of 220 enlisted men were either occupational specialists or students when they entered service.) The following table lifted from hearings on the bill H. R. 8948 (S. 3503) shows that 13,005 disabled Regulars received increases under bills enacted since March 20, 1933, and that 7,296 were decreased in pensions : A study of regular establishment veterans on the rolls Jan. 31, 1938, showing the action taken under laws enacted since Mar. 20, 1933 1 Includes changes due to changed physical condition. Does not include veterans with service prior to 1898 or those previously paid as World War or Spanish War cases. Source: Budget and Statistics Mar. 10, 1938. The attention of the committee is invited to the following statistics taken from the report of the Administrator of Veterans' Affairs (1938), table 13, page 56, and table 14, page 58. These tables set forth the number of veterans receiving pensions, the amount paid therefor from the years 1910 to 1938, inclusive, and the average yearly payment. In 1910 (29 years ago) there were 13,180 disabled Regulars on the pension rolls who drew an average pension of $166.14 per annum ($13.85 per month). In 1932 (just before the so-called Economy Act) there were 18,391 disabled Regulars on the pension rolls who drew an average of $241.41 per annum ($20.12 per month). In 1938 there were 33,062 disabled Regulars on the pension rolls who drew an average of $264.86 per annum ($22.07 per month). In 1934 there were approximately 10,000 cases previously considered as World War cases added to the rolls as disabled Regulars. The average monthly pension of these veterans was, in 1938, $26.26, or $6.19 per month over the 1938 average for disabled Regulars, $20.07, mentioned above. In 1936 about 2,877 of the group added in 1934 were restored to the World War group. Analysis. It becomes clear from the above that disabled Regulars are today drawing an average pension of but $1.95 more per month than in 1932 and but $8.22 more per month than in 1910 (29 years ago) under a law enacted in or about the year 1862 (about 75 years ago). In 1933 the disabled Regulars were subjected to the terrible slashes of the so-called Economy Act, and they have never recovered therefrom. It is quite true that the rate per 1 percent of disability was increased to $0.45 at that time, but there was immediately instituted a new system of rating disabilities which still leaves its mark on those who were on the rolls. Public, 788 restored these Regulars to but 75 percent of the rate they were drawing prior to the so-called Economy Act, provided such rates were not in excess of 75 percent the amount drawn by war veterans for like disabilities. The attention of the committee is again drawn to the fact set forth above that Regulars are now drawing a general average of but $1.95 per month pension over that of 1932 (prior to the Economy Act), and approximately $18 per month less average pension than paid our line-of-duty disabled war veterans. Cost of S. 522.-Approximately 31,276 disabled Regulars will benefit from enactment of this bill. The average war pension, service connected, is $40.12 per month, while that of the Regulars affected is but $22.22, which would be increased under this bill to $36.11, an increase in average pensions of but $13,89 per month. We estimate the additional cost for the first year would be but $5,211,883.68. Summary.-Gentlemen, with just a few words more I will close. The treatment accorded the disabled of the Regular Establishment bears heavily on the morale of the personnel now in service. In the last few months we have heard much about national defense but nothing about the man behind the gun. The term "national defense" is being used to focus the attention of the American public on securing needed equipment but the morale of the human beings who man our guns, fly our planes, maintain our equipment, and who serve and sacrifice that our integrity, our safety, and our prestige remain inviolate are not considered. Last year, this committee reported out, unanimously, a bill that called for one and one-quarter million dollars more money than this bill we are considering today. The committee stated, in reporting out the bill last year: "However, after having gone into the situation carefully the Senate Military Affairs Committee has concluded because of the urgent need for a pension increase to members of the Regular Establishment and their dependents, and in view of the fact that the case is so clear, to report S. 3503 favorably to the Senate with a recommendation that it be passed." We feel that the same consideration will be given this year, for the need is greater today. The clarity of the case has been emphasized, the need for relief is vital. We have heard much during the past few months of national defense, the need of modern equipment, increased forces, etc., but not one word has been said yet of the personnel, a phase of national defense second to none in importance, and we believe it appropriate at this time to set forth just a few of the many discriminations under which his morale is staggering. |