benefits. There has been a lack under the previous system of a board before which the claimant might appear in the first instance for the purpose of making claim, taking a physical examination and having his claim acted upon. There resulted by this system the deserved criticism that the bureau was making "paper ratings." It was difficult for the medical referee to obtain from the physical examination reports an adequate comprehension of the claimant's disability. So far as possible this situation is being eliminated, to the end that the bureau and the claimant may meet and that the resultant determination in the case may be based upon sound and fair procedure.

The system of veterans' relief demands humane administration and, in recognition of this principle, every effort has been made to humanize the carrying out of the law so as to soften the mechanical rigors of public administration to meet the special needs and the difficult situations of the disabled ex-service man. Where authority was coupled with discretion, that discretion has been exerted in a humanitarian direction, and where the law fell short of its real intent beneficial legislation has been passed to aid those pitiful legacies of war previously beyond the legal scope of the bureau's jurisdiction. Adverse criticism of the bureau on account of these latter cases would have been less general had there obtained in the mind of the public a true understanding of the enabling law with its technical limitations.

During the past year there has been emphasized to a greater extent than ever before the policy of cooperation with the ex-service man, his representatives, and the general public. There has been established in the central office an information and cooperation division whose function it is to aid the ex-service man in the presentation of his claim or in his physical relief, wherever he may be. The bureau has gone into penal institutions and State asylums and has reviewed the cases of veterans there; to place under bureau jurisdiction such cases as may be there as a result of misconduct through a diseased mind'incident to service; to see that such rights as may have accrued to these unfortunate veterans are granted; and has in general attempted to relieve suffering among ex-service men so far as possible where they are not legally beneficiaries of this bureau. The files of the bureau have been made available to representatives of recognized ex-service men's organizations, so that they may assist in every way possible the settlement of a disabled veteran's claim with the bureau. Appeals from these representatives of service organizations have been recognized. The bureau has counseled with the national and other officers of service organizations in the determination of its policies and the solution of its problems. It has requested the aid of business interests of the country, of great labor organizations, and of civic and social groups in solving the problem of employment among the rehabilitated ex-service men, and all of these organizations have responded in a spirit of sympathetic cooperation and have assisted in the employment of the newly trained veterans. From the medical profession outstanding specialists have wholeheartedly and unselfishly come to the assistance of the bureau in outlining and planning its system of medical relief, and have formed a medical council which is considering the practical problems of medical administration and treatment. The impetus supplied to

effective administration by these means is great and properly couples public responsibility with governmental responsibility.

The Government's protection has been extended to the mentally incompetent and to minor beneficiaries, to be assured that there is a proper application of the relief granted by the Government to these beneficiaries. Rightfully has the bureau considered this class of exservice men and dependents unable to protect themselves, wards of the Government, at least so far as Government relief is concerned. and rightfully it is proper for the bureau to concern itself with the disposition of the benefits paid. These helpless persons have been practically entirely in the hands of guardians, curators, and conservators, to whom the Government paid over without question all benefits intended for their wards. It was questioned whether these benefits reached undiminished the objects of the Government's care, and there was no adequate check upon or control over persons to whom the benefits were actually paid. This condition could not continue and so, without infringing upon the prerogatives of the various States in guardianship matters, the bureau has, nevertheless, concerned itself with the manner in which the guardian has carried out his trust. Guardians of bureau beneficiaries must now report periodically how they are taking care of their charges, failing which. or where it is seen that the helpless person is being neglected, the bureau ceases to deal with the guardian and administers its benefits directly as the best interests of the beneficiary may require.

ORGANIZATION

It was pointed out in the last annual report of the United States Veterans' Bureau that careful consideration should be given to a scheme of organization under which planning would be recognized to its fullest possibilities and under which control would be more comprehensive. This was premised on the fact that officials having jurisdiction over the operation and administration of the primary functions of the bureau-such as compensation, vocational training, medical service, and supply-had their time so occupied with the duties of their offices that planning and control, in the sense of initiating new procedure and measuring the proper and practical working of plans, was subordinate. While it was recognized that the technical functions of planning and control should be divorced from routine administrative activities, so that technical offices should not be burdened with routine duties, previous reorganizations (and there were many) had merely regrouped the organization units. Planning and control were still considered the preorgatives of administrative officials.

In January, 1924, however, after the fundamental causes underlying the frequent and unsatisfactory reorganizations had been deliberately studied, a scheme of organization was adopted which not only grouped as services similar primary activities but also put into practice the recognized theory that planning and control should be distinct from operation and administration. Under this reorganization six services were established, together with the two separate offices of the general counsel and the board of appeals. These six services were as follows:

(1) The medical and rehabilitation service, comprising medical relief and procedure and vocational rehabilitation;

(2) The claims and insurance service, comprising the compensation and insurance claims division and the insurance division;

(3) The finance service, comprising the disbursing and accounting divisions;

(4) The supply service, comprising the construction, personnel, and supply divisions and the office of the chief clerk;

(5) The planning service, made up of the policy and procedure division, the office management division, and the budget office; and

(6) The control service, comprised of the inspection division, the statistics and costs division, and the information and cooperation division.

Thus, planning and control were set up as two separate services, permitting adequate time to be given to problems difficult of solution, and bringing these important functions into proper perspective in relation to the primary operation activities. While in the beginning some difficulties were experienced, due to the fact that administrative offices were unaccustomed to the new organization, and to the fact that proper liaison between services had to be established, the new organization has finally been placed on a sound working basis. Not only did this reorganization prove a happy one in the solution of problems before the bureau at the time it was adopted, but it proved most fortuitous in the development of procedure and field organization under the authority of the World War veterans' act, This act, to a certain extent, revolutionized bureau procedure, liberalizing as it did the benefits possible to extend to the disabled veteran and permitting the further decentralization of field organizations by authorizing claims adjudication in what were originally subdistrict offices, which now are being reorganized on the basis of regional offices responsible directly to the central office.

This reorganization has stood the test of practical trial, with the exception of the medical and rehabilitation service. These two activities were originally combined under one service on the principle that physical and vocational rehabilitation were in a sense allied and that, under one directing office, the carrying out of these activities might be correlated and coordinated. In no sense was it considered to lessen the importance of either activity or to subordinate them from the standpoint of relative importance. Experience taught, however, that each of these activities was of such primary significance and importance that the director must have intimate contact with the application of this relief and personal direction over its development. Consequently, the medical and rehabilitation service was dissolved and the medical service and rehabilitation division set up as separate services responsible directly to the director.

On September 27, 1923, the medical board of review was abolished and there was established in its place a central board of appeals consisting of seven members appointed by the director, three of whom were medical specialists in general medicine, tuberculosis, and neuropsychiatric diseases, the others representing the claims division, the insurance division, the legal division, and the rehabilitation division. This organization, however, was not adequate to properly care for the tremendous volume of work coming to the board and did not permit the care and consideration necessary in the proper adjudication

effective administration by these means is great and properly couples public responsibility with governmental responsibility.

The Government's protection has been extended to the mentally incompetent and to minor beneficiaries, to be assured that there is a proper application of the relief granted by the Government to these beneficiaries. Rightfully has the bureau considered this class of exservice men and dependents unable to protect themselves, wards of the Government, at least so far as Government relief is concerned, and rightfully it is proper for the bureau to concern itself with the disposition of the benefits paid. These helpless persons have been practically entirely in the hands of guardians, curators, and conservators, to whom the Government paid over without question all benefits intended for their wards. It was questioned whether these benefits reached undiminished the objects of the Government's care, and there was no adequate check upon or control over persons to whom the benefits were actually paid. This condition could not continue and so, without infringing upon the prerogatives of the various States in guardianship matters, the bureau has, nevertheless, concerned itself with the manner in which the guardian has carried out his trust. Guardians of bureau beneficiaries must now report periodically how they are taking care of their charges, failing which, or where it is seen that the helpless person is being neglected, the bureau ceases to deal with the guardian and administers its benefits. directly as the best interests of the beneficiary may require.

ORGANIZATION

It was pointed out in the last annual report of the United States Veterans' Bureau that careful consideration should be given to a scheme of organization under which planning would be recognized to its fullest possibilities and under which control would be more comprehensive. This was premised on the fact that officials having jurisdiction over the operation and administration of the primary functions of the bureau-such as compensation, vocational training, medical service, and supply-had their time so occupied with the duties of their offices that planning and control, in the sense of initiating new procedure and measuring the proper and practical working of plans, was subordinate. While it was recognized that the technical functions of planning and control should be divorced from routine administrative activities, so that technical offices should not be burdened with routine duties, previous reorganizations (and there were many) had merely regrouped the organization units. Planning and control were still considered the preorgatives of administrative officials.

In January, 1924, however, after the fundamental causes underlying the frequent and unsatisfactory reorganizations had been deliberately studied, a scheme of organization was adopted which not only grouped as services similar primary activities but also put into practice the recognized theory that planning and control should be distinct from operation and administration. Under this reorganization six services were established, together with the two separate offices of the general counsel and the board of appeals. These six services were as follows:

(1) The medical and rehabilitation service, comprising medical relief and procedure and vocational rehabilitation;

(2) The claims and insurance service, comprising the compensation and insurance claims division and the insurance division;

(3) The finance service, comprising the disbursing and accounting divisions;

(4) The supply service, comprising the construction, personnel, and supply divisions and the office of the chief clerk;

(5) The planning service, made up of the policy and procedure division, the office management division, and the budget office; and (6) The control service, comprised of the inspection division, the statistics and costs division, and the information and cooperation division.

Thus, planning and control were set up as two separate services, permitting adequate time to be given to problems difficult of solution, and bringing these important functions into proper perspective in relation to the primary operation activities. While in the beginning some difficulties were experienced, due to the fact that administrative offices were unaccustomed to the new organization, and to the fact that proper liaison between services had to be established, the new organization has finally been placed on a sound working basis. Not only did this reorganization prove a happy one in the solution of problems before the bureau at the time it was adopted, but it proved most fortuitous in the development of procedure and field organization under the authority of the World War veterans' act. This act, to a certain extent, revolutionized bureau procedure, liberalizing as it did the benefits possible to extend to the disabled veteran and permitting the further decentralization of field organizations by authorizing claims adjudication in what were originally subdistrict offices, which now are being reorganized on the basis of regional offices responsible directly to the central office.

This reorganization has stood the test of practical trial, with the exception of the medical and rehabilitation service. These two activities were originally combined under one service on the principle that physical and vocational rehabilitation were in a sense allied and that, under one directing office, the carrying out of these activities might be correlated and coordinated. In no sense was it considered to lessen the importance of either activity or to subordinate them from the standpoint of relative importance. Experience taught, however, that each of these activities was of such primary significance and importance that the director must have intimate contact with the application of this relief and personal direction over its development. Consequently, the medical and rehabilitation service was dissolved and the medical service and rehabilitation division set up as separate services responsible directly to the director.

On September 27, 1923, the medical board of review was abolished and there was established in its place a central board of appeals consisting of seven members appointed by the director, three of whom were medical specialists in general medicine, tuberculosis, and neuropsychiatric diseases, the others representing the claims division, the insurance division, the legal division, and the rehabilitation division. This organization, however, was not adequate to properly care for the tremendous volume of work coming to the board and did not permit the care and consideration necessary in the proper adjudication