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was for some years authorized to have X-ray and laboratory work performed on claimants for disability allowance at certain designated hospitals, and for a number of years he referred such work to the Black Hills Methodist Hospital. In each instance of referring veterans to this hospital Dr. Minty states that he made a report to the Veterans' Administration, and that the Administration made no objection at the time such reports were submitted to them.

When the hospital submitted their voucher for certain of this work, amounting to $288.65, the Veterans' Administration had to refuse payment on same because a change in their regulations required authorization for such work to come from their office, and because no authorization therefor had been given by them. It is stated by the Veterans' Administration that notice had been sent to all field examiners instructing them that authorizations for X-ray and laboratory work must come from that Administration, but it is stated by Dr. Minty that he received no such notice.

The special examinations made by the Black Hills Methodist Hospital were actually received by the Veterans' Administration and used in the adjudication of claims. It is not believed by your committee, nor by the Administration, that either Dr. Minty or the hospital deliberately ignored these instructions, but that they acted in good faith in accordance with their usual custom. It is stated by the Administration that if Dr. Minty had requested these authorizations, they would undoubtedly have been granted, as these special examinations were necessary for the proper adjudication of the claims involved.

The Veterans' Administration has no objection to the enactment of the proposed legislation, and it is the recommendation of your committee that the bill be passed.

Appended hereto is the report of the Veterans' Administration, together with other pertinent evidence.

VETERANS' ADMINISTRATION,
Washington, May 5, 1938.

Hon. AMBROSE J. KENNEDY,
Chairman, Committee on Claims,

House of Representatives, Washington, D. C.

MY DEAR MR. KENNEDY: This is in further reference to your request of February 4, 1938, for a report on H. R. 9134, Seventy-fifth Congress, a bill for the relief of the Black Hills Methodist Hospital, of Rapid City, S. Dak.

The available records indicate that Dr. F. W. Minty, a designated general examiner of the Veterans' Administration at Rapid City, S. Dak., had in numerous instances referred claimants who had been authorized to report to him for disability allowance examinations to the Black Hills Methodist Hospital for X-ray services without first having obtained authority from the Veterans' Administration office at Sioux Falls, S. Dak., in violation of instructions. The figure stated in the bill, i. e., $288.65, represents the amount claimed by the above hospital for services rendered. Prior to the time Dr. Minty requested the services for which payment is claimed by the Black Hills Methodist Hospital, the Veterans' Administration office at Sioux Falls had furnished all field examiners with certain instructions pertaining to authorization of specific examinations from which the following is quoted:

"Examination will not be made on any veteran until properly authorized and in no instance will designated or pension examiners incur expense for laboratory tests, X-ray examinations, etc., or for specialists' examinations without first having obtained authority to do so."

The records show that medical examiners engaged in the same work complied with the instructions above quoted. The regional office requests for examinations furnished Dr. Minty in these cases were for general examinations and for the additional services requested by him of the Black Hills Methodist Hospital it was necessary for him to secure prior authority. During the period in question the records show that payment was made to the hospital for similar services rendered in other cases, based upon special written authority from the regional office. asmuch as the expenses for which the hospital seeks reimbursement were incurred without the requisite authority it was necessary for the Veterans' Administration to disapprove the claim for reimbursement.

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The special examinations made by the Black Hills Methodist Hospital were actually received by the Veterans' Administration and used in the adjudication of claims. However, as stated before, payment could not be approved inasmuch as prior authorities for such examinations had not been issued as required by

existing instructions. It is not believed that either Dr. Minty or the hospital deliberately ignored these instructions, and insofar as Dr. Minty is concerned his failure to observe instructions was apparently an oversight. If Dr. Minty had requested these prior authorities they would undoubtedly have been issued as a review of the cases involved indicates that such special examinations were necessary for the proper adjudication of such claims.

Should the Congress determine from the facts and circumstances that the Black Hills Methodist Hospital is entitled to relief as provided in the bill, the Veterans' Administration would interpose no objection to enactment of the proposed measure.

Very truly yours,

STATE OF SOUTH DAKOTA,

County of Pennington, ss:

FRANK T. HINES, Administrator.

F. W. Minty, being first duly sworn, deposes and says that he is a duly licensed and practicing physician, located and maintaining his office at Rapid City, Pennington County, S. Dak.; that he now is, and ever since the establishment of that Bureau, after the World War has been, the designated examining physician, at Rapid City, for the United States Veterans' Bureau; that, as such examining physician, affiant was instructed by said Bureau, for a number of years, to authorize X-ray and laboratory work at certain designated hospitals, the charge for such work being paid by the United States Veterans' Bureau; that under this plan affiant authorized such work at the Black Hills Methodist Hospital, of Rapid City, S. Dak.; that, being a designated hospital for a number of years, and during the years 1931 and 1932, examinations as per copy of voucher hereto attached in the total sum of $288.45; that affiant sent his reports on all of said examinations to the United States Veterans' Bureau and said Bureau made no objection to the work at the time such reports were submitted to them; that affiant is informed the United States Veterans' Bureau refused payment on said claim when the hospital submitted their bill or voucher for the services, for the reason that a change in their regulations required the authorization for such work come from their office and that no authorization therefor had been given by them; that at the time affiant authorized these services at the Black Hills Methodist Hospital he had no notice of any change in the regulations pertaining to these matters and did not have such notice until the Veterans' Bureau refused payment on said claim of the Black Hills Methodist Hospital; that during the period he authorized this work at the Black Hills Methodist Hospital he followed the instructions and procedure he had been using in such matters for several years prior to that time and he believes that said claim of $288.45 is justly due and owing to the Black Hills Methodist Hospital of Rapid City, S. Dak.

Dated at Rapid City, S. Dak., this 28th day of January 1938.

F. W. MINTY.

Subscribed and sworn to before me this 28th day of January 1938. [SEAL]

о

EDNA A. PRICE, Notary Public.

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JUNE 12 (legislative day, MAY 28), 1940.-Ordered to be printed

Mr. ELLENDER, from the Committee on Claims, submitted the . following

REPORT

[To accompany H. R. 1178]

The Committee on Claims, to whom was referred the bill (H. R. 1178) for the relief of Lester R. Taylor, having considered the same, report favorably thereon with the recommendation that the bill do pass without amendment.

The facts are fully set forth in House Report No. 1853, Seventysixth Congress, third session, which is appended hereto and made a part of this report.

[H. Rept. No. 1853, 76th Cong., 3d sess.]

The Committee on Claims, to whom was referred the bill (H. R. 1178) for the relief of Lester R. Taylor, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass.

The amendments are as follows:

Line 5, after the name "Taylor" insert "of Sturgis, South Dakota".

Line 6, strike out the sign and figures "$1,307.50" and insert in lieu thereof "$792.68".

Line 6, after the word "claims" insert "against the United States".
Line 8, strike out the word "by" and insert in lieu thereof "when".
Line 8, strike out the word "when" and insert in lieu thereof "was".

At the end of the bill add: ": Provided, That no part of the amount appropriated in this Act in excess of 10 per centum thereof shall be paid or delivered to or received by any agent or attorney on account of services rendered in connection with this claim, and the same shall be unlawful, any contract to the contrary notwithstanding. Any person violating the provisions of this Act shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined in any sum not exceeding $1,000."

The purpose of the proposed legislation is to pay to Lester R. Taylor, of Sturgis, S. Dak., the sum of $792.68 in full settlement of all claims against the United States for injuries, hospital care, andother expenses suffered and incurred when his son, Jerry Taylor, a minor, was struck by a Government truck operated in connection with the Civilian Conservation Corps, at Sturgis, S. Dak., on June 14, 1937.

STATEMENT OF FACTS

According to the records of the War Department, at about 4 p. m. on June 14, 1937, a Government truck operated in connection with Civilian Conservation Corps activities was proceeding on official business in an easterly direction on LaZelle Street, Sturgis, S. Dak. The truck was traveling on its proper side of the road at a speed of about 20 miles per hour. A car owned and operated by Mrs. Katherine Lovegren was parked, facing west, near the curb on the north side of LaZelle Street, and Jerry Taylor, aged 41⁄2, son of the claimant, was a passenger in this car. It is stated that, when the Government vehicle had almost reached the parked car, Jerry alighted from the right side of the car, ran around the rear of the vehicle, and then across the street. The Government driver applied his brakes as soon as he saw the child but was unable to stop his vehicle before striking him.

As a result of being so struck the child suffered the following injuries:

1. Fracture, simple, complete, transverse, proximal third, left femur (no joint involvement).

2. Wound, lacerated (6 inches long, gaping 1 inch wide and 1 inch deep), markedly severe, transverse over right loin over right iliac crest involving abdominal muscles.

3. Contusions, moderately severe, right parietal region.

From all the evidence on file before your committee it would appear that the Government driver was without fault in this accident, inasmuch as he was operating his vehicle at a moderate rate of speed and in a cautious manner, and also in view of the fact that upon examination immediately after the accident the truck was found to be in good working condition. However, due to the extreme youth of the injured child, 41⁄2 years, no degree of negligence can be imputed to him.

The War Department, in its report to your committee, states in part as follows: "While it is the view of the War Department that the facts in the case as set forth above indicate no negligence on the part of an employee of the Government, it appears that Mr. Taylor has incurred certain expenses as a result of this accident to which no negligence on his part contributed. Under these circumstances the Department refrains from making any recommendations in the premises and prefers to leave the matter to the equitable determination of the Congress."

From all the facts before the committee it appears that Jerry Taylor was very seriously injured and his father, Lester Taylor, incurred considerable expense as a result of the child's injuries. There will be found hereafter appended notarized bills showing that the actual expenses involved amounted to exactly $792.68. In view of the circumstances surrounding this case, your committee recommends the payment of this amount to Mr. Taylor.

Appended hereto is the report of the War Department, together with other pertinent evidence, as follows: WAR DEPARTMENT, Washington, June 7, 1939.

Hon. AMBROSE J. KENNEDY,

Chairman, Committee on Claims,

House of Representatives, Washington, D. C.

DEAR MR. KENNEDY: Careful consideration has been given to the bill (H. R. 1178, 76th Cong.) for the relief of Lester R. Taylor, which you transmitted to the War Department under date of April 21, 1939, with request for information and the views of the Department relative thereto.

The purpose of the proposed legislation is to pay to Lester R. Taylor the sum of $1,307.50 in full settlement of all claims for injuries, hospital care, and other expenses suffered and incurred by his son, Jerry Taylor, a minor, when struck by a Government truck operated in connection with the Civilian Conservation Corps at Sturgis, S. Dak., on June 14, 1937.

On April 27, 1938, the War Department furnished your committee the following report, on H. R. 9508, Seventy-fifth Congress, third session, a similar bill for the relief of Mr. Taylor.

"The records of the War Department show that on June 14, 1937, at about 4 p. m., a Government truck operated in connection with Civilian Corservation Corps activities was proceeding on official business in an easterly direction on LaZelle Street, Sturgis, S. Dak., on its proper side of the road, at a speed of about 20 miles per hour; that a car owned and operated by Mrs. Katherine Lovegren, in which Jerry Taylor, age 41⁄2 years, the son of Lester R. Taylor, Sturgis, S. Dak., was a passenger, was parked, facing west, near the curb on the north side of LaZelle Street; that when the Government vehicle had almost reached the parked car, Jerry alighted from the right side of the car, ran around the rear of the vehicle,

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