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The amounts of compensation paid to veterans and survivors are modest and it is imperative that these rates take into account the rapid changes we are experiencing in the consumer price index. The Veterans' Affairs Committee has always granted a high priority to the needs of disabled veterans and survivors, and I think it most important that we act expeditiously to report out legislation which would bring these rates in line with recent changes in the consumer price index.

Furthermore, Mr. Chairman, I would like to take this opportunity to focus specifically on H.R. 4763 and H.R. 5498-two measures I have co-sponsored which are now before the subcommittee.

H.R. 4763 would restrict the authority of the Administrator of the Veterans Administration to alter the schedule of ratings for disabled veterans. H.R. 5498, which also includes this provision, would limit VA authority with regard to construction of hospitals and closing of hospitals, and would limit VA authority to transfer real property and land. H.R. 5498 is referred to as the Veterans Administration Accountability Act, and the purpose obviously is to restore to Congress certain authorities which have been granted to the VA Administrator.

Both of these bills would require the VA to submit a proposal to Congress before taking such action. If Congress did not veto or reject the proposal submitted by the VA, the Administrator could then go ahead and expedite these proposals.

The need for Congress to retrieve these powers was thrown into sharp focus last year when the VA Administrator issued a revised schedule of disability ratings. These proposed ratings, if they had been adopted, would have cut the disability rating and pay of many seriously disabled veterans. As a result, Congress, Veterans groups, and countless citizens were justifiably irate and the President subsequently ordered these changes withdrawn.

In addition, the General Services Administration recently surveyed Veterans Administration properties and declared land surplus to VA needs. This action conflicted with the opinions of many who firmly believed that much of this land should have been retained for future veterans needs, such as hospital facilities and cemeteries.

As a result. H.R. 4763 and H.R. 5498 were introduced as future precautions against this kind of unwarranted action. These proposals, if passed, would ensure that the VA could not continue these practices free from review by Congress.

Furthermore, in recent years alarm has grown concerning a possible move to close VA hospitals and to consolidate regional offices without the approval of Congress. This concern was heightened by the recent closing of public health service hospitals. Hence, among the things it would do, H.R. 5498 would also bring matters relating to location of VA hospitals, closing of hospitals and consolidation of regional offices under the purview of Congress.

Mr. Chairman, in conclusion, I respectfully urge that the committee report out the legislation it is considering today. I believe the measure before us would aid the committee and the Congress in fulfilling one of the major obligations now facing us-the responsibility we have to help make life more meaningful for the thousands of young men who served in Vietnam. Thank you.

STATEMENT BY HON. BOB PRICE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS

Mr. Chairman and members of the committee, earlier this year I introduced H.R. 13348 to provide for approximately a 15% increase in current rates of disability compensation. I thank the Committee for giving me the opportunity to present my views on such legislation.

The cost-of-living justified this 15% increase. While I have long been an advocate of eliminating unnecessary expenditures from the Federal budget, just compensation for our veterans certainly does not fall into this category. This program compensates more than 2 million veterans who served our country unselfishly for the suffering their service has caused them and their families. Surely, our entire country should give utmost priority to assist these natriotic Americans in maintaining a decent life. In many instances, they sacrificed the onnortunities which would have been available to them in their future by fighting for the country in which we live today. Obviously, however. I do not need to tell the Members of this Committee of the reasons for providing comrensation for these veterans. What is important is the amount that this compensation should be increased.

Disability compensation payments were last increased in August, 1972. Since that time the cost-of-living has increased tremendously. According to the Bureau of Labor Statistics, the August 1, 1972 Consumer Price Index was 125.6 and by March 1, 1974, it had advanced to 141.5—an increase of 12.7 percent. There is little assurance-especially with the recent announcement that wage and price controls will be lifted almost entirely-that this amount should not increase substantially in the immediate future. Since disability compensation rates do not automatically respond to changes in the cost-of-living, legislation should be enacted now which will allow for increases in the cost-of-living in the foreseeable future. This will allow our veterans not only to receive what is rightfully theirs now, but in the interval period before such legislation comes before this Committee again.

Many veterans in my district have written to me on the inability to exist on the amount of compensation which they now receive. A touching example of the type of letter which I have recently received on this subject comes from one veteran who writes: "Some of us die a little every day, but not from regret of our service to this wonderful country. We just ask for a little from you, and our fellow man, who can help us out." I urge the Committee's immediate consideration of legislation to assist our veterans.

STATEMENT OF HON. LINDY (MRS. HALE) BOGGS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF LOUISIANA, ON H.R. 4138

Mr. Chairman, thank you very much for this opportunity to address the subcommittee in support of H.R. 4138. As one of 21 co-sponsors of the original bill submitted last summer by my colleague, the Honorable G. William Whitehurst, I am pleased to be afforded a chance to speak on its behalf.

The purpose of this legislation is to amend Section 103 of Title 38 of the U.S. Code concerning survivors' benefits. Presently, the law suspends dependency and indemnity compensation benefits for widows, whose husbands have died in active duty, should they decide to remarry. H.R. 4138 would allow a veterans' widow over the age of 60 to remarry without incurring the loss of her survivor's benefits. Aware of a similar inequity in the distribution of social security benefits, the 89th Congress passed in 1965 enlightened legislation which enabled remarrying widows continued receipt of survivor benefits acquired from the death of a spouse. In this age of rising prices and high unemployment, such legislation becomes increasingly vital because it helps ease the cost of living for individuals who find themselves either in retirement or on the brink of being squeezed out of the job market. During the past months, a number of my constitutents have emphasized to me the hardships of this situation. When a widow over 60 remarries, she and her new husband are usually retired and the small social security checks they receive barely provide enough income for a minimal existence.

Withdrawing survivors' benefits from widows also has the secondary effect of discouraging women from marrying again and becoming part of a family. By maintaining this section of Title 38, the National Government is covertly discriminating against women by making the costs too high for them to remarry.

Retaining widows' compensations for women over 60 is also important because statistics today show that the American female's average life span is longer than that of the American male. Whereas a man in this country can be expected to live only until the age of 67, a woman's average life is 75 years. In those remaining years without a husband, her veterans survivors' benefits would be an invaluable asset to help counter the costs of living.

In addition, should this legislation take effect. I do not believe it would be an excessive burden on the Treasury because of the unlikelihood that a much greater number of veterans' widows over 60 would remarry. However, the number is significant enough to warrant congressional action.

With all these facts in mind, I believe this legislation is necessary to provide equitable treatment and entitled benefits which our widows of veterans so rightly deserve.

STATEMENT BY HON. FRANK E. DENHOLM, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF SOUTH CAROLINA

Mr. Chairman and members of the committee, I am grateful for the opportunity to appear before you today and I commend you for conducting hearings on the proposed legislation to provide indemnity compensation to the surviving widows of veterans over the age of 60 years, notwithstanding the dependent status of the beneficiaries as a result of a subsequent marriage. (H.R. 9914)

The proposed legislation is essential to the survivors of many veterans. Veterans that sacrificed the most and often died possessed of the least-and the hurts and scars and memories constitute no valid legacy of riches of monetary value to dependents or to the survivors thereof.

I respectfully submit that widows have sacrificed in years of apprehension, shared fears of loneliness and that these circumstances should not be rewarded in aloneness, economic distress, poverty, want and despair of modest necessities of life.

I urge the adoption of the legislation and I am hopeful that the members of the Committee and the Congress will approve the proposed legislation without delay. (H.R. 9914 and all related proposals pertaining thereto.)

Thank you very much.

STATEMENT OF HON. C. W. BILL YOUNG, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA, ON H.R. 3623, H.R. 6290, AND H.R. 6427

Mr. Chairman, I want to thank the members of the Subcommittee for providing me with this opportunity to testify on behalf of three bills which I have introduced to aid our veterans, especially our disabled veterans. As one who has testified on several occasions before this subcommittee, I know that it shares my continued concern over the veterans of this country and their special needs. H.R. 3623 provides for adjustment assistance to prisoners of war of the Vietnam era because of the inhumane circumstances of their incarceration; a former POW may receive, under this bill, $30 per month for each year or portion of a year that he was detained as a prisoner of war, up to a maximum of $150 per month.

Mr. Chairman, I watched, along with millions of other Americans, as our returning POWs disembarked and were greeted by their families. The physical marks of their long captivity were apparent even then, and as their tales of torture, deprivation, and mistreatment were told, I realized that these men had suffered as much or more than men who were wounded in battle. My bill recognizes this suffering and provides payment as if our POWs had suffered a disability. The Congress has done very little thus far to provide compensation to our POWs for the long years of suffering which they have undergone on behalf of their country. Even less has been done for their families. I trust in the judgment of this subcommittee to remedy this defect and provide to our POWs this form of disability compensation for the sufferings which they have endured.

H.R. 6290 would amend title 38 of the United States Code to stabilize and "freeze" as of January 1, 1973, the Veterans Administration Schedule for Rating Disabilities, 1945 edition, and extensions thereto. I am sure my colleagues on the subcommittee are aware of the background of this legislation, so I will touch on it only briefly. The Veterans Administration had proposed in late 1972 sweeping changes in VA disability compensation schedules which, by drastically reducing disability ratings and thereby pensions, would have saved $160 million. I shared the shock and dismay of the millions of veterans who found themselves faced with imminent cuts as the nature of their disabilities were downgraded as an economy move. And I shared their pleasure in learning that President Nixon himself ordered the VA to rescind its proposals.

However, there is nothing now in the law to prevent the VA from trying these high-handed tactics once again. Unless the Congress resumes formal responsibility for managing the rating schedule, our veterans remain under constant threat of having their pensions reduced at the whim of the VA. H.R. 6290 would remove that threat by freezing the rating schedule as it now stands and requiring that any future changes be approved by the Congress before being implemented. Finally, H.R. 6427 provides additional monthly compensation to those veterans who are totally disabled as a result of combat injuries. Such veterans are a very special group of men-they have made an enormous physical sacrifice for their country, and have done so on the field of battle. It is in recognition of this special sacrifice that I propose we give these men-many of whom are permanently confined to wheelchairs and restricted in the scope of life they can enjoy a small additional sum monthly. They have difficult adjustments to make and special expenses to meet because of their total disability. Extra monthly compensation is one thing that a grateful Nation can provide to those so severely injured on the field of battle.

In conclusion, Mr. Chairman, I urge the subcommittee's favorable consideration of the foregoing three bills, and its continued attention to the problems and needs of America's veterans.

[Submitted for the record by Hon. Frank Horton, Representative in Congress from the State of New York]

Penfield, N.Y., March 25, 1974. Re George H. Brennan, Disabled Veteran WWII 307/214 C-4 980 643. Abstract claim dated January 2, 1973. Contributory data and related correspondence from January 2, 1973 to present.

CONGRESS OF THE UNITED STATES,
House Committee on Veterans' Affairs,
Washington, D.C.

GENTLEMEN: At the suggestion of Congressman Frank Horton, 34th District, State of New York, I am submitting the following statement to your committee relative to a reform program to give reasonable aids to the disabled veteran that he is not now receiving, and to initiate a reform program that will recognize and provide aid to dependents of the disabled veteran; the latter of which is not now existent.

All observations and materials submitted in this statement can be documented and substantiated by a variety of means, both as a result of personal research as well as personal experience.

The entire area of aid to families of the disabled veterans as an accepted social unit of our society has not been searched and acted upon by either military or congressional liaison in perhaps as long as fifty years, if ever. Those programs of limited extent date back to premises acted upon after the Spanish-American War.

The result has been neglect and indifference by government agencies to the problems of the disabled veteran as the functioning leader of a family unit in accord with the norms of the male role in our society, moral values, and economic standards by which we live.

To off-set this inequity, fiscal responsibility and financial subsidy, particularly in times of family crises as when the veteran is hospitalized, or must change employment patterns, has had to be assumed by someone else; usually a fully employed spouse; or, if children are involved, a fully employed mother; or, perhaps elderly parents. Too often, brother-sister or other relationship, though close, are unresponsive to the financial needs of the disabled veteran on a limited, fixed budget.

What this means in terms of dollars can be illustrated by our experience. During the period 1959-61, when my husband was hospitalized for several extended periods for his service-connected disabilities, I was forced to supplement his meager income by continual liquidation of invested capital to buy food, clothing, and sustain payments on our home. It took me twenty years of earned savings to accrue this resource, which had been meant to provide security for myself, my husband and our family in the future. Part of this expenditure is reflected in our income tax return for the year 1960.

This return represents the sale of 100 shares of Eastman Kodak stock that had been bought and paid for. It was no projected mutual installment plan that had to be abandoned. I paid capital gains on this sale.

Since that time, Eastman Kodak stock has split twice, to become at present market value, 400 shares. Had my husband's normal earning capacity not been interrupted at this time as well as other times, this particular liquidation would not have been necessary. We have always been able to live within the confines of a tight budget. But, his combined award, plus ouside earned income which is always under some kind of curtailment, had never been such that we could replace this lost security, despite the fact that I worked part-time for nine years to effect some recovery.

Every time the base price of Eastman Kodak stock goes up one point, I and my family have lost another $400 of paid-up insurance. That's the way I view it.

Not only has my husband been physically handicapped by his miltary service, but myself and two children have been, and are being, systematically victimized economically, as well as socially disadvantaged by the same token.

This is only one instance. There are others.

It is my opinion, that we are only one of perhaps a million others, who are similar victims. Our particular position is, perhaps, one of clearer definition within a range of proven assets and expenditures, which makes delineation easier to articulate, and for that reason easier to comprehend.

Following are some of the conceptual structures that would improve the position of those crippled in the interest of national defense.

Military Obligation.-Definitive statement relative to military responsibility not only to those casualties of adverse military deployment, but military and congressional responsibility to their dependent families. Reference. Enclosed copy of VA Buffalo Regional Office correspondence, Adjudicating Officer, dated March 8, 1973, copy enclosed.

Congressional control measures.-A federal agency to admiinster benefit awards and aid to disabled veterans, and only disabled veterans and their dependents, under civilian control, as distinct from the present Veterans' Administration, now under military control, and with concerns only for the larger group of normally discharged veterans.

A cursory review of legislative efforts and veterans administration of this legislation, particularly in the past twenty years, will reveal an eroding indifference to the exceptional problems that are experienced by the disabled veteran and his family in his attempt to regain status under the handicaps that affect him.

There is no reason why care for the disabled veteran and his family cannot be more equitably administrated by complete civilian control under the sponsorship of the Congress. Under the present administration, the disabled veteran is not a free agent, and never will be, because he is always dependent upon military tribunal, which, naturally, will never assume a policy that would incriminate the larger structure, nor provoke criticism. Within this larger structure of which the Veterans' Administration is a part, and a very able one too for the general services that it provides, the disabled veteran has no effective representation. In actual practice, as noted on Page 1, this statement, fiscal subsidy of the disabled veteran and his family has for many years, been forced by the vacuum of military indifference, upon the civilian groups noted.

There is no reason why this greated vacuum cannot be filled by official recognition through congressional action and complete civilian control through a created agency of the Congress.

It is my thinking that such an agency would have greater responsiveness to the economic and social needs of the disabled veterans in an environment of family and home life, as opposed to one of military institutionalism. Ref. Ibid.

AWARD BENEFITS

(1) Review of how these rates are determined, and greater public participation and/or representation on review boards granting awards.

(2) Increased direct benefit awards to disabled veterans reflecting current cost of living standards. They are now totally inadequate to reality, even for the physically able.

(3) A federal agency with the mechanism to provide interim financial aid to families of the disabled veteran during periods of crises, such as hospitalization of the veterans, or his dependents, or changes of employment patterns due to his disability.

The family of the disabled veteran has no medical insurance coverage unless his outside employment provides this as a fringe benefit. Example. For four years my husband had to provide this on an expensive private contract plan. When we could no longer afford this expenditure, our family was for eighteen months without any medical insurance whatever. He now receives this as fringe benefit in his present employment.

The Champus Program under new legislation through the Veterans' Administration is fine for the able bodied veteran. For the average disabled veteran it is so riddled with ambiguity and restriction, particularly with respect to dependents, that it is for all practical purpose, worthless.

(4) In the absence of some federal agency that is empowered to act on behalf of the families of disabled servicemen, effective liaison with state and/or local agencies that may effect this required aid.

Local social agencies not only ignore request for interim aid to families of disabled servicemen, they refuse it, unless the servicemen is reduced to the stigma of defined indigent and pauper with no personal resource whatever.

(5) Recognition of regional requirements to sustain decent and adequate living for the disabled servicemen and their families should be reflected in benefit awards. Obviously, the cost of living varies from locale to locale. Present standards are below those of any published figure in the entire country, including outlying territories.

Representing direct aid to disabled servicemen and their families, it is my thinking that the following measures could be of immediate attention and con

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