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lowed under other provisions of paragraph VIII of Veterans Regulation No. 10. as amended, heretofore quoted.

In determining whether any liberalization of paragraph VIII, Veterans Regulation No. 10, as amended, is desirable, the committee may wish to consider the provisions of title 18, U. S. C. 4126, under which compensation may be paid to United States prisoners or their dependents for injuries suffered while employed by the Federal Prison Industries. While such provisions in behalf of civilian prisoners and their dependents may be urged as indicating the propriety of corre sponding relief for military prisoners and their dependents, there is for consideration the fact that the present provisions of paragraph VIII of Veterans Regulation No. 10, as amended. are designed, among other things, to assist in the maintenance of military discipline.

There is no available information upon which to base an estimate of the cost of H. R. 6557, if enacted.

The Veterans' Administration is not advised as to the relationship of this proposed legislation to the program of the President: Sincerely yours,

O. W. CLARK, Executive Assistant Administrator (For and in the absence of the Administrator.)

RAMSEYER RULE

In accordance with clause 2a of rule XIII of the Rules of the House of Representatives, the changes made in existing law by the bill are shown as follows (existing law proposed to be omitted is in black brackets; new matter is in italics; existing law in which no changes are proposed is shown in roman):

SECTION 2 OF H. R. 5598 Veterans Regulation Numbered 3 (a), as amended, is hereby amended by adding thereto a new paragraph following paragraph I to read as follows:

"I. The Administrator of Veterans' Affairs is hereby authorized and directed to adopt and apply a schedule of ratings [and] of reductions in earning capacity from specific injuries or combination of injuries. The ratings shall be based, as far as practicable, upon the average impairments of earning capacity resulting from such injuries in civil occupations. The schedule shall be constructed so as to provide ten grades of disability and no more, upon which payments of pension shall be based, namely, ten percent, twenty percent, thirty percent, forty percent, fifty percent, sixty percent, seventy percent, eighty percent, ninety percent, and total, one hundred percent. The Administrator of Veterans' Affairs shall from time to time readjust this schedule of ratings in accordance with experience.

"II. Any ex-service person shown to have active tuberculosis which is compensable under Public Law Numbered 2 and the Veterans Regulations promulgated pursuant thereto, who in the judgment of the Administrator of Veterans Affairs has reached a condition of complete arrest, shall be rated as totally disabled for a period of two years following such date of arrest, as 50 per centum disabled for an additional period of four years, and 30 per centum for a further five years. Following far adrancea active lesions the permanent rating shall be 30 per centum, and following moderately advanced lesions, the permanent rating, after eleven years, shall be 20 per centum. provided there is continued disability, dyspnea on exertion, impairment of health, and so forth; otherwise the rating shall be zero per centum: Provided, That this Ad shall not be construed as requiring a reduction of compensation authorized under any other law or regulation: Provided further, That no compensation shall be payable under this Act for any period prior to its enactment: And provided further, That the total disability rating herein provided for the two years following a complete arrest may be reduced to 50 per centum for failure to follow prescribed treatment or to submit to examination when requested."

SECTION 3 (A) OF H. R. 5598 Subparagraphs (a) to (j), inclusive, of paragraph II, part I, Veterans Regulation Numbered 1 (a), as amended, are hereby amended to read as follows:

"(a) If and while the disability is rated 10 per centum the monthly compensation shall be [$13.80] $15.

"(b) If and while the disability is rated 20 per centum the monthly compensation shall be [$27.60] $30.

"(c) If and while the disability is rated 30 per centum the monthly compensation shall be [$41.40] $45.

“(d) If and while the disability is rated 40 per centum the monthly compensation shall be [$55.20] $60.

"(e) If and while the disability is rated 50 per centum the monthly compensation shall be [$69.00] $75.

"() If and while the disability is rated 60 per centum the monthly compensation shall be [$82.80] $90.

"(g) If and while the disability is rated 70 per centum the monthly compensation shall be [$96.60] $105.

"(h) If and while the disability is rated 80 per centum the monthly compensation shall be [$110.40] $120.

"(i) If and while the disability is rated 90 per centum the monthly compensation shall be [$124.20] $135.

"(j) If and while the disability is rated as total the inonthly compensation shall be ($138.00] $150.

SECTION 3 (B) OF H. R. 5598 Paragraph IV of part I of Veterans Regulation Numbered 1 (a), as amended. is hereby amended as follows:

“The surviving widow, child or children, and dependent mother or father of any deceased person who died as the result of injury or disease incurred in or aggravated by active military or naval service as provided in part I, paragraph I hereof, shall be entitled to receive compensation at the monthly rates specified next below:

"Widow but no child, $75; [widow with one child, $ 100 (with $15 for each additional child)] widow with one child, $105 (with $25 for each additional child); no widow but one child, $58; no widow but two children, $82 (equally divided); no widow but three children, $106 (equally divided) (with $20 for each additional child; total amount to be equally divided); dependent mother or father, $60 (or both). $35 each."

SECTION 5 of H. R. 5598 Paragraph VIII of Veterans Regulation Numbered 10, as amended, is hereby amended as follows:

"Par. VIII. An injury or disease incurred during military or naval service will be deemed to have been incurred in line of duty and not the result of the veteran's own misconduct when the person on whose account benefits are claimed was, at the time the injury was suffered or disease contracted, in active service in the military or naval forces, whether on active duty or on authorized leave, unless such injury or disease was the result of his own willful misconduct: Provided, That venereal disease shall not be presumed to be due to willful misconduct if the person in service complies with the Army or Navy regulations requiring him to report and receive treatment for such disease: Provided further, That the requirement for line of duty will not be met if it appears that at the time the injury was suffered or disease contracted the person on whose account benefits are claimed (1) was avoiding duty by deserting the service, or by absenting himself without leave materially interfering with the performance of military duties; (2) was confined under sentence of court martial or civil court(.): Provided, howerer, That disease, injury, or death incurred without willful misconduct on the part of the service person shall be deemed to have been incurred in line of duty if the sentence of the court martial did not involve an unremitted dishonorable discharge or if the offense for which convicted by civil court did not involve a felony as defined under the laws of the jurisdiction where the service person was convicted by such civil court."

O

REORGANIZING FISCAL MANAGEMENT IN THE

NATIONAL MILITARY ESTABLISHMENT

JULY 14, 1949.-Committed to the Committee of the Whole House on the State

of the Union and ordered to be printed

Mr. VINSON, from the Committee on Armed Services, submitted the

following

REPORT

(To accompany H. R. 5632

The Committee on Armed Services, to whom was referred the bil, (H. R. 5632) to reorganize fiscal management in the National Military Establishment to promote economy and efficiency, and for other purposes, having considered the same, report favorably thereon with amendments and recommend that the bill, as amended, do pass.

The amendments are as follows:
On page 2, line 12, add the following new sentence after the period:

The Comptroller shall receive compensation at the rate prescribed by law for the Chairman of the Munitions Board

On page 4, line 5, after the period, insert the following new sentence: There shall, in each military department, also be a Deputy Comptroller.

INTRODUCTION

The bill is the result of long and careful study of the requirements for an over-all fiscal structure of the National Military Establishment and is the foundation for the correction of the fiscal deficiencies pointed out by the Commission on Organization of the Executive Branch of the Government and by the task force headed by Mr. F. Eberstadt, which made an exhaustive study of the National Security Organization. The provisions of this bill have the wholehearted support of former President Herbert Hoover, the Comptroller General, Mr. Bernard Baruch, as well as other fiscal authorities both in and out of Government service.

GENERAL SUMMARY

The provisions of this bill provide for the reorganization of fiscal management in the National Military Establishment to promote efficiency and economy. The bill contains provisicns all of which are intended to provide an over-all basic fiscal structure which will facilitate the common use of facilities, make possible the application of a sound management approach and provide the means for three departments-separately administered by their respective Secretaries-to work together as a team on fiscal matters better to achieve the desired goal of economy and efficiency. The bill provides among cther things for the appointment of a comptroller in the Office of the Secretary of Defense, for the appointment of comptrollers in the military departments, and for comparable organization and procedures in budgetary and fiscal matters in the Office of the Secretary of Defense and in the three military departments.

The bill also provides for the presentation of budgets in a form that clearly reflects the cost of performing the activities of the National Military Establishment and for the conduct of authorized programs in the same manner. It also contains provisions designed to prevent overdrafts and deficiencies. Among its other provisions are authority for the organization of inventories of the military departments into stock funds, for the operation of industrial- and commercial-type activities as integral working units-in a manner similar to commercial business enterprises on the basis of an adequate capital structure, for departmental management funds to facilitate the carrying out of joint and special operations, for uniforna terminologies, classifications, reporting systems, and accounting procedures, for the common use of disbursing facilities, and for reports of property.

The provisions of this bill are designed to place the operation of the National Military Establishment on a sound budgetary and fiscal management basis.

COMPTROLLER OF THE NATIONAL MILITARY ESTABLISHMENT

(SEC. 401)

Subsection (a) of this section establishes a Comptroller for the National Military Establishment in the Office of the Secretary of Defense. The Comptroller is to be a person experienced in this field, appointed from civil life by the Secretary and compensated at the rate prescribed by law for the Chairman of the Munitions Board. The Comptroller will be the principal adviser of the Secretary of Defcr.se on all budgetary and fiscal matters and will exercise the several specified functions under the authority, direction and control of the Secretarv.

Subsection (b) of this section provides that the Comptroller will be the fiscal management officer of the Department of Defense and as such responsible, under the Secretary of Defense, for efficiency and economy in its business operations. A principal function is the supervision and direction of the preparation of an integrated military budget, based upon the strategic plans of the Join Chiefs of Staff, coordinated with the plans of the Research and Development Board in the field of research and with the plans of the Munitions Board in the fields of procurement, industrial mobilization, and stock piling of stretegic and

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