the condition shortly after the period of the World War. It follows, therefore, that the percentage of allowed cases reviewed by the Special Review Boards under the provisions of section 20, Public No. 78, would be unusually high in those areas. In general the same condition holds for neuropsychiatric cases in those regional areas where extensive hospital facilities are available for the treatment of nervous diseases.

APPARENT BASIS FOR VARIATIONS IN PERCENTAGE OF ALLOWED CASES

Based upon available information it is believed that the principal reasors for the variance in the allowed and disallowed presumptive cases are as follows: 1. The attitude of the individual serving on the board.

2. Personal appearance by the veteran and/or his representative and the credence given to the testimony at the time of hearing.

3. The diligent prosecution of the presumptive cases by the representatives of the service organizations and the submission of additional evidence.

4. The fact that some boards placed a more liberal interpretation upon the law, regulations and instructions than others.

5. The attitude of the public in the particular region toward veterans relief. There is one observation made by a Legionnaire who served as a member of one of these boards that in my judgment sizes up the situation better than any other statement made. This statement was made in connection with the Legion's four-point program.

That perpetuation of service connection for all veterans properly granted such service connection under laws in existence prior to March 20, 1933, be recommended as an item of the Legion's policy.

May I recommend to you and to your subcommittee on legislation that this point be given careful consideration.

I have had some service as a member of a Special Board of Review. Our Board considered each care carefully, with scrupulous regard for every scrap of evidence in the folder, with conscientious concern for the veteran, whose very life in some instances no doubt was in our hands. As a result of my study of these cases I am prepared to assert that by no extension of the benefit of a doubt, by no rule of decency, by no stretch of the imagination, can all cases previously granted service connection be rightfully declared service connected. Pitiable many of them are, deserving of benefits far beyond benefits now provided for total and permanent nonservice-connected cases, but not service connected, and it may well endanger the rest of our four points to claim service connection for them.

That is a quotation from the Legion's program.

Mr. Chairman, that statement was made without any regard to this hearing or any question being raised as to the results. The man who made the statement is an outstanding Legionnaire, and I have no doubt that he sized up the situation very well. Of course the work was strange to many of the men who served on these boards. The evidence was before them, and I have no doubt that they did a better job than we had any right to expect. It would seem to me that in the small number of cases out of the total on the rolls presumptively connected, an effort should be made to develop the good cases on appeal before we reach the conclusion that all the work done by these boards should be thrown overboard. I think, in fairness to the veterans, in later years they will thank us for our efforts to keep this roll what you gentlemen desire it, and what the service organizations desire it, so as to have on the rolls only men who belong there.

I have a number of tabulations which show the work of these boards in various forms. I do not care to burden the record with tl.em. They are available for the record. They are available for any member of the committee or any Member of Congress who desires to go into the detail of the matter. I shall be glad to make them available. They are very interesting. I should hesitate to

hazard a guess that of the disallowed cases, any large percentage of them should go back on the rolls until we complete our study of them on appeal.

Undoubtedly many of those cases appeal to us. They are heartbreaking because of the condition of the man; but that is quite a different factor than whether they are due to service or not. Of course if they reach the point, as some of them do, where they go from presumptive service-connected to the permanent and total nonserviceconnected cases, there is some aid there; but some of them do not go there, and of course go off the rolls entirely.

Mr. Chairman, I have wandered around. We have prepared for your use a memorandum covering the contentions made at various hearings of your committee. They are here. They can be read, or they can be handed to you and put in the record if you desire. They cover numerous questions; but we have tried to cover those points which, as I said, it seemed to be important for the committee to have some information about in reaching a determination of this question. Senator BYRNES. General, one question arose, naturally, in the consideration of the figures the wide variance between the percentage of allowed cases in certain districts as compared with others. In referring to that, you have mentioned the fact that one thing that would affect it would be the presence of hospitals in the district. I think it was said that it ran all the way from about 75 percent in one district to about 30-some percent in another.

What is your opinion as to that situation? Of course we know that the human element is always present. You have mentioned the hospital. What else can you suggest in explanation?

General HINES. I suggest this, Mr. Chairman:

In the first place, not all of these cases are the same type of cases. It is impossible to compare areas in that way. I have a feeling that in many areas for instance, the one in Arizona where the percentage of tubercular cases is very high-the allowance there would run higher than in some other area where that type of case does not go. Another factor would be that in some areas you will have troops that served in combat; and probably the feeling among the members selected from that group would be that those men who served in combat, whether there is any other evidence or not, should be given service connection if they have had it for some time. The best picture that you can get of the situation, gentlemen, is to take the larger offices, like New York and Chicago, where there are a large number of cases before the boards. You will find that the variation in those cases is not so great-that is, the variation in allowance and disallowance. Of course, it is one man's opinion against another in this matter. I would not attempt to be an expert on these variations. We have analyzed them the best we could in the statement I have given.

Senator BYRNES. Some reference was made to a rather high percentage at Charlotte, N.C. What is the character of the hospital that you have at Oteen?

General HINES. That is a tubercular hospital, and a very large one. Not only in the hospital but in that area we find a number of men suffering from tuberculosis.

Senator BYRNES. In the mountain section of North Carolina?
General HINES. In the mountain section.

Senator RUSSELL. General, you are familiar with the American Legion program. Have you any figures that represent the estimates of the administration as to the total cost of that, with a breakdown as to each item?

General HINES. Yes, sir; I have a statement here.

Senator RUSSELL. I should like to have you offer that for the record. General HINES. Probably it would be well if this entire statement were left with the committee. There have been several revisions of various programs submitted.

The original program of the Legion, under our calculations, would cost $113,200,000.

The revision of that program as it is now before the committee would cost $73,119,000.

Senator STEIWER. Does that mean for the first year, General Hines?

General HINES. That is for the first year. I might say that before the changes were made raising basic rates from $9-$90 to $10-$100 the benefits would have cost the following sums:

Pensions, $53,619,000.

Then the widows and children-which is entirely new legislation to our existing law and regulations so far as that group is concerned$27,200,000.

Hospital and domiciliary care, including transportation, $8,000,000. Giving a total of $88,819,000.

The President's regulations of January 19 modify that to the extent of $15,700,000, which would reduce the total to $73,119,000.

Those differences are made up primarily in pensions, a difference of $24,081,000. Hospital and domiciliary care the additional item of using all facilities, if that is what they contemplate, would cost $16,000,000.

This tabulation which I have here includes an estimate on the Hope bill, the Rankin bill, the Reed bill, the Steiwer bill, and the D.A.V. drafts, with notes as to how we reached these various estimates. I believe it would be much more intelligent to the committee if I left this statement and let you look it over than to attempt to read it into the record.

Senator BYRNES. I hope you will leave it with us.

General HINES. There is a copy of it right there. You can keep the copy, and I will keep the original.

(The statement referred to was ordered to be made a part of the record, as follows:)

1 Does not consider removal from rolls of any presumptive cases where service connection could be rebutted by Government.

Reference is made to your request of January 5, for an estimate of cost of H.R. 6170, Seventy-third Congress, "A bill to amend Public Law No. 2, Seventy-third Congress, entitled 'An act to maintain the credit of the United States Government', and Public Law No. 78, Seventy-third Congress, entitled 'An act making appropriations for the Executive Office and sundry independent executive bureaus, boards, commissions, and offices, for the fiscal year ending June 30, 1934, and for other purposes"", there is attached a statement showing the estimated annual cost and the estimated 5-year cost of the provisions of this bill.

To restore to the rolls all World War veterans whose disabilities were connected with service under the World War Veterans' Act as provided in this bill at a basic rate of $100 a month, would involve an annual additional expenditure at approximately $70,000,000.

To pay to the widows and children of the World War veterans dying from disabilities not connected with service at the rates and under the provisions specified in the bill, would approximate $27,200,000 annually.

To restore hospitalization for nonservice-connected cases as provided in section 202 (10) of the World War Veterans' Act and to provide domiciliary care for World War Veterans, would cost approximately $16,000,000 annually if other Government facilities and contract hospitals were used in addition to Veterans' Administration facilities to the same extent as previous to passage of Public, No. 2. If hospital and domiciliary care were restricted to the use of Veterans' Administration facilities, it is estimated that this provision would cost approximately $6,000,000, annually.

There is attached a statement showing the estimated annual and estimated 5-year cost of this bill. The total cost for 1 year would approximate $113,200,000 S. M. MOORE, Jr.

H.R. 6170, 73D CONGRESS

I. To restore to the rolls all World War Veterans whose disabilities were connected with service under section 200 of the World War Veterans Act 1924, as amended, and who served between April 6, 1917 and November 11, 1918, at a basic rate of $100, the disabilities to be rated at variant seven of the 1925 Schedule of Disability Ratings. Specific injuries will be paid as in Regulation (I a), part I, par. II, (k-l-m-n-o) with a minimum of 50 percent rating for arrested tuberculosis. It is estimated that the annual increased cost will approximate $70,000,000. This will mean an increased compensation payment to 305,000 veterans and restored payments to approximately 23,000. The 5-year cost would approximate $350,000,000.

II. To pay pensions to widows and children of veterans who died from disabilities not connected with war service at rates provided in part III, Public, No. 2. It is estimated that this provision would cost approximately $27,200,000 for a complete fiscal year affecting widows and children of approximately 132,650 deceased veterans. The 5-year cost of this provision would approximate

$173,000,000.

III. To restore hospitalization and domiciliary care to World War veterans as provided by section 202 (10) of the World War Veterans' Act. It is estimated that this cost would approximate $16,000,000 annually.

Chief, Legislation and Regulations, and Budget Officer and Chief of Statistics. Reference is made to your verbal request for an estimate of the cost of H.R. 7102, "A bill to amend Public Law No. 2, Seventy-third Congress, entitled 'An act to maintain the credit of the United States Government', and Public Law No. 78, Seventy-third Congress, entitled 'An act making appropriations for the Executive Office and sundry independent executive bureaus, boards, commissions, and offices, for the fiscal year ending June 30, 1934, and for other purposes.'

This bill in effect provides for the restoration to the rolls of all World War veterans who were entitled to compensation under the World War Veterans' Act, 1924, as amended except (a) those persons entering the service subsequent to November 11, 1918, (b) cases where clear and unmistakable evidence discloses the fact that the disability was incurred before or after military service, except where aggravation is shown and (c) cases where service connection was established by fraud, error, or misrepresentation of facts. This bill further provides for payment of compensation at the rates in effect prior to March 20, 1933, except as to reduction in hospital cases.

In making an estimate of cost, it was impossible to tell the number of cases which might be denied compensation under the provisions quoted on page 2, lines 11 to 14, with reference to presumption of soundness and statutory presumptions. For this reason the only cases which were not included in this estimate were the enlistments after November 11, 1918, and the fraud cases.

Based on the number of cases which are now on the rolls at the rates in effect prior to the regulations of January 19, 1934, the present annual cost is approximately $118,833,000. By restoring to the rolls all cases except peace-time and fraud cases and reducing hospital cases to the rates provided in Public, No. 2, it is estimated that the annual cost would approximate $172,452,000, or an additional annual cost of approximately $53,619,000. However, considering the increase in basic rates provided in the regulations of January 19, 1934, it is estimated that the additional annual cost would approximate $45,919,000. This figure does not include any saving for presumptive cases where service connection might be rebutted by the Government. The saving on presumptive cases might reach a maximum of $15,000,000 depending on interpretations and instructions. However, this figure is high in the light of action taken under Public, No. 2, when comparatively few general medical cases were removed from the rolls.

If

Section 3 of this bill provides for the hospitalization and domiciliary care of nonservice-connected cases in existing Veterans' Administration facilities. hospitalization and domiciliary care is limited to existing Veterans' Administration facilities, including facilities which have not yet been opened, it is estimated that the annual cost, including transportation, would approximate $8,000,000.

1 This cost has been estimated as five times 1934 cost as loss by death would probably be offset by increased percentage of disability.

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