prior to receiving his medical discharge on May 2, 1945. He was rated 100 percent disabled as the result of severe multiple arthritis until his death on March 11, 1973 from a myocardial infarction. His widow's claim for service-connected disability benefits was denied by the VA.

EXHIBIT XV

This 82 year old veteran was gassed while in combat in World War I and rated by the VA as permanently and totally disabled for his service-connected disability of far advanced pulminary tuberculosis with chronic fibrous pleurisy from December 24, 1931 until his death on December 28, 1973. Despite the longstanding duration of his chronic respiratory disability, his widow was denied service-connection for the cause of death from cerebral arteriosclerosis and cardiac failure.

EXHIBIT XVI

This World War II veteran was rated 100 percent disabled for severe multiple gunshot wounds involving all extremities and causing the loss of his right leg from the date of his medical discharge on November 2, 1945 until the date of his death from a myocardial infarction with cardiac failure and generalized arteriosclerotic disease on December 14, 1972. The widow was denied serviceconnection for the cause of death on February 7, 1973.

EXHIBIT XVII

This World War I veteran was granted service-connection for dementia praecox and rated 100 percent disabled and incompetent from 1933 until his death from cardiac arrest and a respiratory disorder in February, 1973. Despite the fact that the veteran's severe mental condition had led to physical deterioration from his inability to properly care for himself, the denial of serviceconnection for the cause of death was upheld by the Board of Veterans' Appeals on January 29, 1974.

If further verification of these cases is desired, the names and claim numbers will be furnished to your Committee upon request.

The next witness is Mr. Charles Mattingly, deputy director of the National Legislative Commission of the American Legion. He is accompanied by Mr. Edward H. Golembieski, director of National Veterans Affairs and Rehabilitation Commission.

Gentlemen, we are delighted to have you back with us again.

STATEMENT OF CHARLES E. MATTINGLY, DEPUTY DIRECTOR, NATIONAL LEGISLATIVE COMMISSION, AMERICAN LEGION, ACCOMPANIED BY E. H. GOLEMBIESKI, DIRECTOR, NATIONAL VETERANS AFFAIRS AND REHABILITATION COMMISSION

Mr. MATTINGLY. Thank you, Mr. Chairman. Mr. Chairman, first of all, I would like to thank you for holding these hearings on this legislation.

The American Legion appreciates this opportunity to present to you its recommendations on pending legislation to improve the veterans compensation and DIC programs and other legislation pending before the subcommittee.

Our views and recommendations are based upon instructions adopted by either a national convention or the national executive committee of the organization and reflect our current policy on the subjects under consideration.

If I might digress, for just a moment, sir; I would like to thank you and Senator Thurmond and the other members of the committee who have cosponsored S. 3079, a bill to return Veterans Day to November 11.

It was indeed a significant action by the Veterans' Affairs Committee to do this as a group in spite of the fact that you do not have oversight of that particular activity, and the Legion is grateful to you for your action.

Our principal witness is Mr. E. H. Golembieski, director of our National Veterans Affairs and Rehabilitation Commission. He is well known to you and I need not state his qualifications. Mr. Golembieski is with me and at this point is prepared to present our statement.

Mr. GOLEMBIESKI. Mr. Chairman and members of the subcommittee, we are pleased that you have given the American Legion the opportunity to present our views on the several measures before you to provide needed cost-of-living increases in monthly payments of disability compensation and dependency and indemnity compensation; to effect revisions in chapter 39 of title 38 pertaining to automobiles and adaptive equipment for certain disabled veterans; and for other purposes. Our statement addresses itself to the four bills under consideration, as well as to other areas under your jurisdiction and on which the American Legion has existing mandates.

S. 3067, a bill to amend chapter 11 of title 38, United States Code, to: (1) increase monthly disability compensation rates by about 15 percent; and

(2) increase by about 15 percent the additional compensation for spouses, children and dependent parents of those veterans whose disability for compensation purposes is rated not less than 50 percent.

At present, chapter 11 of title 38, United States Code, provides for payment of compensation of $495 monthly to those veterans whose service-connected disabilities are evaluated at 100 percent. Higher payments are provided those whose conditions warrant ratings in excess of 100 percent. And for those rates less than 100 percent the payments range from $28 to $275.

These disability compensation payments were last increased by Public Law 92-358. At that time, the $495 payable for 100-percent disability compared favorably with spendable average monthly earnings of production or nonsupervisory personnel on private nonagricultural payrolls.

To maintain the disabled veteran's purchasing power, these payments must be increased in response to cost-of-living increases. As published by the Bureau of Labor Statistics, the August 1, 1972, Consumer Price Index was 125.6, and by February 1, 1974, it had advanced to 139.7, an increase of 11.23 percent. Since disability compensation rates do not automatically respond to changes in the cost of living, legislation proposed should anticipate increases that will occur in the interval between enabling legislation granting offsetting increases.

An alternative is to provide an automatic adjustment that will recognize future increases in the cost of living, as measured by the Consumer Price Index over a given base period.

We have noted the text of President Nixon's letter to the chairman of the Senate Veterans' Affairs Committee, and to others, in which he proposes a 12-percent increase in disability compensation payments, effective March 1, 1974, with future automatic adjustments based on Consumer Price Index increases.

Mr. Chairman, we support the purpose of S. 8067, that is to increase monthly compensation payable under chapter 11 by about 15 percent, effective May 1, 1974. In addition, we urge an amendment to provide an automatic adjustment to recognize future increases in the cost of living, as measured by advances in the Consumer Price Index, on and after the effective date of this bill, the Veterans Disability Compensation Act of 1974.

S. 8072, a bill to amend title 88, United States Code, to:

(1) increase by about 16 percent the monthly payments of dependency and indemnity compensation to spouses, spouses with children, and to children;

(2) liberalize the eligibility for payment of dependency and indemnity compensation to surviving dependents; and

(3) equalize rates of death compensation payable for peacetime, service-connected death to dependent survivors with those payable for wartime service-connected deaths, and increase by 16 percent the added aid and attendance payable to widows and dependent parents receiving death compensation.

Monthly rates of dependency and indemnity compensation payable to surviving spouses, spouses with children, and to children alone were last increased by Public Law 92-197, effective January 1, 1972. On that date the Consumer Price Index was 123.1. By February 1, 1974, it had advanced to 139.7, an increase of 13.5 percent.

Considering the cost-of-living increase since January 1, 1972, and the anticipated increase that will occur by the date of enabling legislation, there is more than sufficient justification for the 16-percent increase provided in S. 3072.

Again, we have given consideration to the President's proposal that DIC payments be increased 14 percent, effective March 1, 1974. Our preference is enactment of S. 8072, effective May 1, 1974, with the cost-of-living escalator that would toll from a subsequent base period. We support too, Mr. Chairman, that provision of this bill which would liberalize the eligibility for payment of dependency and indemnity compensation to certain survivors of disabled veterans. Our mandates, from the August 1973 national convention held in Honolulu, Hawaii, urges an amendment of 38 U.S.C. 410, so as to provide that dependency and indemnity compensation shall be payable to the spouse, child, and parent of any veteran who was, at time of death, in receipt of or entitled to receive compensation for a service-connected disability permanent and total in nature and had been in receipt of or entitled to receive such compensation for a period of 10 years.

As the members of this subcommittee know, ratings of disability, under the Veterans' Administration Schedule for Rating Disabilities, do not take into consideration reduced life expectancy flowing from total service-connected disabilities. In addition, because of the severity of this level of disability, veterans so rated have a reduced earning power. Both reduced life expectancy and diminished earning power deny the survivors an economic status they might otherwise have experienced.

While there is provision in Veterans' Administration regulations for a finding of service-connected death in individual cases on the basis that the service-connected condition contributed to death from another cause, some deserving cases continue to be denied. Specifically,

the regulation states that it must be shown that it contributed substantially or materially; that it combined to cause death; that it aided or lent assistance to the production of death. It is not sufficient that it casually shared in producing death, but rather that there was a causal connection.

A statutory provision, such as we suggest, would automatically resolve all doubt in favor of service connection for cause of death where death was not due to an accident.

We voice no objection, Mr. Chairman, to that provision of this bill which would establish parity in payments of death compensation to veterans of peacetime service survivors with that payable the survivors of wartime veterans who died of service-connected causes.

S. 1076, a bill relating to the authority of the Administrator of Veterans' Affairs to readjust the schedule of ratings for the disabilities of veterans; to the construction, alteration and acquisition of hospitals and domiciliary facilities; to the closing of hospitals and domiciliary facilities; and to the transfer of real property under the jurisdiction or control of the Administrator of Veterans' Affairs, with amendment No. 499 to provide that the Deputy Administrator of Veterans' Affairs, Chief Benefits Director, and Chief Medical Director shall be appointed by the President, by and with the advice and consent of the Senate. Although the Administrator of Veterans' Affairs, by direction of the President on February 14, 1973, has recalled from the comment process the proposed draft revision of the Veterans' Administration Schedule for Rating Disabilities, the American Legion does not believe that this is the end of efforts in this direction by this administration or by following administrations.

A look at the history of the economic validation of the schedule for rating disabilities will disclose that considerable effort and expense was directed to the project that was sanctioned originally by the Bureau of the Budget, and later by the Office of Management and Budget. It seems unlikely that the proposed revision will be permanently abandoned. As we recede from the end of our involvement in Vietnam, and the maimed and wounded are absorbed into our society, we predict that eventually the Veterans' Administration will be instructed to promulgate a revised schedule based on the economic validation study. Under the present language of section 355 of title 38, United States Code, the Administrator of Veterans' Affairs has unrestricted authority to change the disability rating schedule.

Mr. Chairman, we continue to remain convinced that congressional approval should be mandatory before any changes or revisions are incorporated in the schedule for rating disabilities. Our conviction is sustained by the President's proposal of March 4, 1974, to the chairman of the full committee, and to others, for structural changes in veterans' compensation based on the results of the in-depth survey of servicedisabled veterans a survey designed to determine the acuracy of the VA schedule for rating disabilities. Apparently, the administration will try to do piecemeal what it had failed to do wholesale in February 1973 when it attempted to promulgate a revised schedule based on the 1967 economic validation study.

With respect to the Administrator's authority on closing and constructing of facilities and disposition of real property excess to Veterans' Administration needs, the following is quoted from resolution

No. 336, approved by the 1973 national convention held in Honolulu, Hawaii:

Resolved, by the American Legion in national convention assembled in Honolulu, Hawaii, August 21, 22, 23, 1973, that we shall support legislation as will:

1. Restrict the closing of any hospital, domiciliary, or regional office of the Veterans' Administration unless notice of the proposed closing is first submitted to the Congress.

2. Prevent transfer (by sale, lease, or otherwise) certain real property to any other department or agency of the Federal Government, to any State or subdivision thereof, to any territory, or possession of the United States, or to any public or private person or other entity, unless notice of the proposed transfer is first submitted to the Congress.

3. Limit the authority of the Veterans' Administration and the Office of Management and Budget with respect to the construction, alteration, or closing of Veterans' Administration hospitals. Consequently, Mr. Chairman, we do support the purpose of sections 3, 4, and 5 of the "Veterans' Administration Accountability Act of 1973."

Amendment No. 499, as proposed by Senator Cranston for himself and Senators Hartke and Randolph, would require the appointment by the President by and with the advice and consent of the Senate of the Deputy Administrator of Veterans' Affairs, the Chief Medical Director and the Chief Benefits Director. This proposal would not pertain to incumbents of these offices on the date of enactment of the amendment.

As of now, we have no policy that would permit our urging your favorable consideration of amendment No. 499, as intended to be offered.

If it is the wisdom of the subcommittee that these appointments should be Presidential by and with the advice and consent of the Senate, we would interpose no objection to its enactment.

S. 2363 is a bill to amend chapter 39 of title 38, United States Code, relating to automobiles and adaptive equipment for certain disabled

veterans.

As proposed, this bill would

(1) establish for veterans with service after January 31, 1955, the same eligibility that now pertains to veterans of World War II and the Korean conflict;

(2) increase from $2,800 to $3,300 the maximum that the Administrator may provide an eligible veteran on the purchase price of an automobile or other conveyance, in addition to furnishing required adaptive equipment;

(3) authorize the Administrator to provide directly or by contract for the conduct of special driving training courses to each eligible person in the type of automobile or conveyance he wishes to obtain under this chapter;

(4) authorize the Administrator to obtain insurance on automobiles or conveyances used in conducting the special training course authorized, and to obtain at Government expense, personal liability and property damage insurance for all persons taking such training courses; and