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a decrease of $21,398 compared with actual obligations for 1935 and a decrease of $581 from estimated obligations for 1936. These savings, like many others, are due to consolidations which are being made and the resulting elimination of many small items of contract expense when the smaller unit is merged with the larger one.

REIMBURSEMENT TO STATES FOR VETERANS IN STATE HOMES

The next item, " 2200-Grants to States and other political subdisions", involves an estimate of $540,000 for 1937.

Under the provisions of the act of August 27, 1888, as amended, reimbursement is authorized to the various States at the rate of $120 per person annually for those veterans cared for in State soldiers' homes when eligible for admission to Veterans' Administration facilities for domiciliary care. During the fiscal year 1933 an average of 6,018 eligible veterans were cared for in State homes, involving No. 2, Seventy-third Congress, and veterans' regulations issued pursuant thereto, the eligibility for domiciliary care was greatly restricted, with the result that the number of veterans in State homes for whom a Federal contribution was required was reduced to an average of 4,357 during the fiscal year 1934 and to 4,160 during 1935. The liberalizing provisions of Public, No. 141, Seventy-fourth Congress, and Public, No. 312, Seventy-fourth Congress, will unquestionably restore to eligibility a considerable number of these veterans, although it is not anticipated that the load will increase to the same level experienced during the fiscal year 1933.

It is conservatively estimated that an average of 4,500 will obtain in both 1936 and 1937, involving estimated obligations at the statutory rate of reimbursement in the amount of $540,000. This is an increase of $40,800 over actual obligations for 1935 and a decrease of $182,000 compared with expenditures for 1933.

BURIAL EXPENSES

The next item of expense is "2250-Burial expenses." The estimate under this object for 1937 is in the amount of $3,400,000, which is the same figure as expected obligations for 1936, and represents the normal experienced trend in these expenditures. As the average age of the veteran increases, the death rate becomes correspondigly higher. Actual obligations for 1935 reached a total of $3,147,840. Estimated obligations for 1936 are $252,160 in excess of 1935 payments; however, it is expected that the accumulation of claims for reimbursement caused by the burial legislation changes under the economy act will have been eliminated during 1936 and that 1937 expenditures will be back to a normal current basis.

PURCHASE OF EQUIPMENT OF HOSPITALS, ETC.

The final item of expenditure under this appropriation is "30— Equipment." An increase of $1,678,000 is requested under this object for 1937 compared with estimated obligations for 1936. This is also an increase of $1,780,658 over actual obligations for 1935. These increases are due entirely to the necessity for purchasing during 1936 and 1937 initial equipment for the new beds to be placed in operation during these fiscal periods. The amount included in 1937 for initial equipment is $2,444,700, as opposed to $525,300 in 1936 and

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$299,172 in 1935. Eliminating these unusual and nonrecurring items, the remaining amounts for comparative purposes for the 3 years are as follows, 1937, $900,600; 1936, $1,142,000; 1935, $1,265,470.

From this comparison it will be seen that the amount requested for 1937 for ordinary purposes is approximately $365,000 less than actual expenditures for 1935; and when considering the 3 years together, the amounts estimated for expenditure show progressive decreases in the face of rising unit costs, a greater number of beds in operation, and an increasing patient load. This item of expenditure receives more than ordinary attention, and the strict control so exercised is responsible for the economy reflected. A feature of administration which has made possible this progressive decrease in the cost of equipment is the procedure which was instituted at the beginning of the fiscal year 1933 requiring my personal approval for the replacement of any items of major equipment, office equipment, mechanical, or labor-saving devices. This innovation has resulted in more careful study and the resulting disapproval of many requisitions and seems to have a tendency as well to discourage requests to a considerable extent. Regardless of the ratio of saving attributable to such of these causes, the effect has been productive and the results gratifying.

In connection with initial equipment the estimates for 1937 and 1936 are based upon costs in prior years for equipping hospitals of like size and type, with no allowance having been made for increased unit costs as a result of a rising market.

PRINTING AND BINDING

Mr. WOODRUM. The next item is for printing and binding and reads as follows:

For printing and binding for the Veterans' Administration, including all its bureaus and functions located in Washington, District of Columbia, and elsewhere, $130,000: Provided, That the Administrator of Veterans' Affairs is authorized to utilize the printing and binding equipment which the various hospitals and homes of the Veterans' Administration use for occupational therapy purposes for the purpose of doing such printing and binding as may, in his judgment, be found advisable for the use of the Veterans' Administration, notwithstanding the provisions of section 87 of the Act entitled "An Act providing for the public printing and binding and the distribution of public documents", approved January 12, 1895, and section 11 of the Act making appropriations for the legislative, executive, and judicial expenses of the Government for the fiscal year ending June 30, 1920, and for other purposes, approved March 1, 1919 (U. S. C., title 44, sec. 111).

General HINES. The amount requested for "Printing and binding ", which is the next appropriation to be considered, is $130,000. This is an increase of $5,000 over the amount appropriated for the fiscal year 1936, and an increase of $1,713 over actual obligations during the fiscal year 1935. This increase is due, in part, to the growing load in hospital and domiciliary cases and the greater number of active compensation and pension cases, although a rather substantial amount of the additional cost represents increases in unit costs occasioned by the rising prices in paper and labor. During the latter part of the fiscal year 1935 the salary cuts were completely restored and are now reflected in full in the unit costs applied by the Government Printing Office in the work produced for the various departments.

It is interesting to note, however, that the appropriations for this purpose for the fiscal year 1933 and 1934 prior to the passage of the economy acts were in the amount of $150,000. A consistent and very careful check has been made of blank forms to prevent revision except where absolute necessity for same is proven and to determine when such forms can be simplified, consolidated, or eliminated. As in all other forms of administrative expenses, this item will continue to receive alert consideration for the purpose of affecting further economies if possible. Turning to chart 1, under the title "Printing and binding", in the books before you there is shown the actual itemized expenditures for this purpose during 1935, the estimated expenditures for 1936, and the comparative requirements for 1937.

ARMY AND NAVY PENSIONS

Mr. WOODRUM. The next item is for pensions and reads as follows: Pensions: For the payment of compensation, pensions, gratuities, and allowances, now authorized under any act of Congress, or regulation of the President based thereon, or which may hereafter be authorized, including emergency officers' retirement pay and annuities, the administration of which is now or may hereafter be placed in the Veterans' Administration, $435,920,000, to be immediately available.

General HINES. The next appropriation item is "Army and Navy pensions", which covers the payment of all compensation, pensions, and allowances authorized by Congress, including emergency officers' retirement pay and various annuities. The appropriation requested for the fiscal year 1937 in the amount of $435,920,000 is $35,160,000 in excess of the appropriation available for the fiscal year 1936. There was passed during the first session of the Seventy-fourth Congress very little legislation affecting pension and compensation payments to veterans. The major piece of legislation of this character was enacted during the latter part of the session and it affected pensions to veterans of the Spanish-American War, including the Boxer Rebellion and the Philippine Insurrection, their widows and dependents. This act, identified as Public, No. 269, Seventy-fourth Congress, approved August 13, 1935, reenacted into law all laws affecting this class of beneficiaries which were in effect on March 19, 1933, prior to the enactment of Public, No. 2, Seventy-third Congress, commonly known as an "Economy Act."

Mr. WOODRUM. Would it be possible to insert as part of your statement a brief chart showing the rates of pay and classes of benefits to each group and class of veterans?

General HINES. That were restored, you mean?

Mr. WOODRUM. As they stand now, compared to what they were, if you want to put in a comparative statement. That question always comes up on the floor of the House. They want to know what a World War veteran gets, and what a Spanish War veteran gets, what the hospitalization is, what the emergency officers get, and so forth.

General HINES. We have a table that I think covers that. If it does not, we will revise it to include whatever information you want furnished.

Mr. WOODRUM. We would like to have it, if it is not in too great detail.

General HINES. We will make one up and confer with the clerk of your committee and get it in such shape as will be convenient for your

use.

General HINES. It is currently estimated that by reason of this liberalizing legislation expenditures for Spanish War pensions will exceed the amount provided for that purpose in the 1934 appropriation by $42,424,736. However, a current revaluation of pension and compensation benefits for all wars shows an estimated reduction in some cases when compared with the amounts included in the 1936 appropriation, notably in the World War group, which reduces this anticipated deficiency to a total of $28,981,628. In this manner it is determined that the expected expenditures during the fiscal year 1936 under this title will approximate $429,741,628 as opposed to an appropriation of $400,760,000. Extending the trends thus established through the fiscal year 1937, the appropriation requested for that fiscal year, $435,920,000, represents a net increase of $6,178,372. Great care has been taken in the development of this estimate; experienced trends have been conservatively applied; and expected obligations for 1936 and 1937 have been computed with the idea constantly in mind of using reasonably minimum calculations where reviews or original adjudicatory action have not yet reached the point where they indicate accurate final trends. It is believed that this estimate represents a minimum requirement in total and in an appropriation of this size covering the volume of individual claims of various degrees and types involving a multitude of indefinite factors to be determined through examination and rating by widely separated and different groups, the slightest variation in the trends which are utilized in the formulation of the estimate will result in a far different conclusion as to the extent of annual disbursements.

Turning to chart no. 1 under the title "Pensions" in the books before you, you will not that this is a comparative statement of actual pension and compensation payments for 1935 and estimated payments for 1936 and 1937. These expenditures are classified by wars with a further break-down of the World War payments into service- and non-service-connected veterans' payments, emergency officers' retirement pay, and World War dependents' payments for service-connected and non-service-connected disabilities. This, I believe, is a valuable and instructive chart, and with your permission I will insert it in the record at this point.

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Following the chart just mentioned are charts numbered 2, 3, 4, 5, 6, 7, and 8, containing a detailed summary of the estimated disbursements for the fiscal years 1936 and 1937, by months, showing the amount of payments and the number of beneficiaries, by wars. These charts are likewise instructive; and depending upon your judgment concerning the volume of the record, they may or may not be inserted.

MILITARY AND NAVAL INSURANCE

Mr. WOODRUM. Your next item is [reading]:

For military and naval insurance accruing during the fiscal year 1937 or in prior fiscal years, $101,120,000.

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General HINES. The amount included in the budget for 1937 under "Military and naval insurance", which is the next item of appropriation, is $101,120,000. This is a decrease of $15,790,000 from the appropriation provided for the fiscal year 1936. Compared with expected expenditures during the fiscal year 1936, however, this is a decrease of $155,089, it being anticipated that there will remain unobligated in the appropriation for 1936 the sum of $15,634,911. This appropriation covers payments arising from contracts with World War veterans for what was known as war-risk insurance." The payments now being made are those to veterans who suffered a permanent and total disability as the result of war service or during the post-war period in which they carried this type of insurance; payments to beneficiaries of soldiers who died in service or during the post-war period in which this type of insurance was in effect; and payments to the Government life-insurance trust fund to meet obligations sustained by that fund incident to the extra hazards of military or naval service of persons so engaged while protected by Government life policies.

The changes in wording requested under this appropriation item involve those necessary to amend the language so as to make it applicable to the fiscal year 1937 and to delete wording in the nature of permanent legislation. The permanent legislation referred to was inserted in the 1936 appropriation language and reads as follows:

Provided, That the appropriation made in Private Act Numbered 244, approved March 2, 1933 (47 Stat., pt. 2, p. 1740), is repealed after June 30, 1935, and the payments authorized by such Act shall thereafter be made from the appropriation for military and naval insurance.

Being permanent legislation, the repeating of this proviso in subsequent appropriations under this title is unnecessary.

Summarizing the actual and estimated expenditures during the fiscal years 1935, 1936, and 1937 by major purposes, the following tabulation clearly illustrates the trend of payments and the basis for formulation of the 1937 estimate:

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