PLATTEVILLE, Wis., July 5, 1961. As members of Raymond Eustice Barracks, No. 1687, Veterans of World War I, U.S.A., we the undersigned, ask that you appear before the House Veterans' Committee, which we believe will hold a hearing at an early date in July 1961, on a pension legislation for veterans of World War I. We the undersigned say we represent the sentiment of the 187 members of our barracks No. 1687 at Platteville, asking your support of legislation for a pension for veterans of War I. (Signed by the following:) Scott A. Curry, Jr., 121 So. Hickory, Platteville, Wis. Fisk C. Gowey, 463 Carl, Platteville, Wis. Clarence G. Fink, Platteville, Wis. Frank E. Plapp, 424 North Elm, Platteville, Wis. Vivon Sherman, 21 W. Pine, Platteville, Wis. Charles Beddick, Montfort, Wis. Charles F. Baxter, Montfort, Wis. Earl E. Blackbourn, Platteville, Wis. H. Frank Klosterman, Platteville, Wis. Guss Morrissey, Benton, Wis. Van Smith, Platteville, Wis. Raymond G. Schwortz, Darlington, Wis. Fred J. Davenport, Route 3, Darlington, Wis. Byron Paynter, Darlington, Wis. Stonehill Keats, Commander, Raymond Eustice Barracks, No. 1687, Veterans of World War I, U.S.A., Platteville, Wis. STATEMENT OF HON. EARL WILSON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF INDIANA Mr. Chairman and member of the Committee on Veterans' Affairs, I consider it an honor and a privilege to appear before you in behalf of World War I vet erans. I am happy that my last appearance before you during the 85th Congress was not in vain, for it was that Congress which gave World War I veterans their charter, thereby permitting them to become recognized as an organization. During my fight for their charter bill, I was charged with using the charter to strengthen their organization that I might push through their pension bill come the 86th Congress. I plead guilty to that charge. That was my motive. Unfortunately I was defeated for reelection and, therefore, could not effectively wage such a fight. A petition was presented to the 86th Congress which could have, if presented early enough in the session, brought about fruitful results. Everyone, including World War I veterans, knows it was presented too late to get appropriate action during that Congress. Let's quit kidding the veterans of World War I. These men of World War I are the forgotten veterans. They are past the age of competitive efforts in this changing world a world, in which a premium is put on youth for economic reasons of production, insurance, etc. These men gave their best in behalf of their country. We cannot afford to let them down. They need our help, and they need it now. Let us bring the bill to the floor of the House. I am sure that few Members can vote against it and at the same time vote billions of aid to many, some who were our enemies or of questionable loyalty to our cause. Mr. Chairman, I plead with you and the members of your committee to see that this bill gets to the floor of the House where the House of Representatives will have an opportunity to vote on this legislation. In closing, I wish to thank you for the opportunity of presenting this statement to you and the committee. CONGRESS OF THE UNITED STATES, Hon. W. J. BRYAN DORN, Washington, D.C. DEAR CONGRESSMAN DORN: Important hearings of the Merchant Marine and Fisheries Committee made it impossible for me to attend your hearings on pensions for veterans of World War I. I do, however, want to approve the actions of many of my colleagues who did appear and who spoke in support of the several measures being considered. Veterans of World War I are, and have been, the forgotten veterans of all wars. Their sacrifices, hardships, devotion to duty, loyalty and everything that goes to make a good soldier, were never questioned. For this, proper recognition was never given. As a member of the World War I Veterans Organization, I cannot subscribe to an "across the board" pension. I personally would feel guilty taking such pension so long as I am capable of caring for myself financially. I do, however, want that to which I and many like myself, might be entitled, to go to those who are in less favorable circumstances and who are in need. I trust you and your committee will favorably report a bill in order that those of use who are more favorably situated can show our appreciation to those not so fortunate. It would appear if we can spend more than $43 billion for defense, we should in some way reward those who arose to the defense of their country and who received less, financially, than those of any other war. With assurances of esteem, I am Sincerely yours, GEORGE A. GOODLING. Mr. DORN. If there is nothing further, the subcommittee will stand adjourned until 10 o'clock in the morning, when these hearings will be continued before the full committee. (Whereupon, at 11:59 a.m., the hearing was adjourned, to reconvene at 10 a.m., Wednesday, July 12, 1961.) NON-SERVICE-CONNECTED PENSION LEGISLATION WEDNESDAY, JULY 12, 1961 HOUSE OF REPRESENTATIVES, Washington, D.C. The committee met at 10 a.m., pursuant to notice, in room 356, House Office Building, Hon. Olin E. Teague (chairman) presiding. The CHAIRMAN. The committee will come to order. The committee is meeting this morning to hear the different veteran organizations testify in behalf of their pension bills. We will first hear from Comdr. John E. Erickson of the Veterans of World War I of the U.S.A., Inc., and then we will hear from Mrs. Lillian Turner, national president, Widows World War I, Inc.; then Mr. Harold Russell, national commander, AMVETS; then Mr. Francis W. Stover, director of legislative service of the Veterans of Foreign Wars; and then Mr. John Corcoran, director, rehabilitation commission, the American Legion. Commander Erickson, we were supposed to have 15 members here this morning but I am afraid they are busy. They may come along later. I think we had better start now or we will not be able to get through. Will you please give your name and address and the name and address of the people with you for the sake of the reporter. STATEMENT OF JOHN E. ERICKSON, NATIONAL COMMANDER, VETERANS OF WORLD WAR I OF THE U.S.A., INC., ACCOMPANIED BY MELVIN D. EDDY, NATIONAL LEGISLATIVE DIRECTOR, AND MICHAEL DWYER, NATIONAL RESEARCH CONSULTANT Mr. ERICKSON. Thank you, Mr. Chairman. We are indeed grateful for this privilege of appearing here today. My name is John E. Erickson. I am national commander of the Veterans of World War I of the U.S.A., Inc. I come from Minneapolis, Minn. On my right is Melvin D. Eddy, national legislative director. Mr. Eddy is from Massachusetts. On my left is Michael Dwyer, national research consultant for the Veterans of World War I of the U.S.A., Inc. He is from Florida. We also have in the room Mr. Bill Holliman, our judge advocate; Mr. Charlie Jennings, our claims officer; Mr. Denton Opp, in charge of legislation; Mr. Glenn Elliott, our adjutant; Mr. Wilbur Cochran, our quartermaster; Mr. LeRoy Chittenden, in charge of publicity; Mr. Henry Hopper, with our legislation division; Mrs. Genevieve Inman of our Ladies' Auxiliary; and Mr. Charles Jensen, our auditor. 1591 Mr. Chairman and members of this distinguished committee: Today we are asking for your consideration to amend title 38, United States Code, to provide for the payment of pensions to veterans of World War I, introduced by Congressman Winfield K. Denton on February 2, 1961, a bill which, if enacted, will give the veteran of World War I a separate and distinct pension for non-serviceconnected veterans. I would like to preface our statement this morning as follows, as it also pertains to the widows of the veterans of World War I. "The status of the individual must remain our primary concern.' So begins the report of the President's Commission on National Goals, published in late 1960. The gradual, but revolutionary changes in the age structure of our population make this principle more important than ever, especially to our senior veterans. Many widows of veterans of World War I survive well beyond the years their husbands spent in gainful livelihood. In retirement these veterans must live upon a reduced income despite the continued rise in the high cost of living. Without question the primary problem of our retired veterans of World War I, or widows remains the question of meeting the costs of basic health care at a time when their income is low, potential or actual illness or disability at its peak, and the relative cost of health services enormous. When the veteran passes away, the income stops, and the widow must exist in the status of a pauper. Pursuant to Senate Resolution 266 (86th Cong., 2d sess.), the following chapter on health status and on the income of the aged population demonstrates this clearly. As a first priority for 1961, the subcommittee recommends that legislation be enacted to provide for the financing of a balanced program of health services including hospitalization, outpatient laboratory diagnosis, skilled nursing home care, home health services and within actuarially feasible limits, part of the costs of expensive medicines, for all retired elderly persons, under a separate insurance fund to be collected and administered by the Social Security Administration. As part of the same legislation proposal, the subcommittee includes as eligible for health benefits, not only those retired senior citizens covered by the OASI system, but those who were never able to achieve such coverage. The cost of including the group outside of the OASI system will be covered by appropriation from general revenues. The net cost to the Federal Government will be relatively small, since most of the funds will be offset by present Federal expenditures for medical care under old age assistance, medical assistance for the aged and other programs. Good health and adequate income are the first two important goals of aged men and women in our country. Aging means economic deprivation for most veterans and widows. More than half of our retired elderly veterans and widows are attempting to survive on incomes uncomfortably below the costs of a minimum budget for such persons. Private pensions currently are enjoyed by only a small minority of veterans or widows. The average social security benefit, the main source of veterans income is around $74 per month, while the average monthly payment to the recipients of old-age assistance is $69. Among the aged veterans and widows who receive social security benefits well below the $74 average, the vast majority have few, if any, additional sources of money income. In an economy and society like our own, we have and will continue to have, on an increasing scale, millions of older persons living for many years in retirement on income from savings and pensions which decline in value with rises in the cost of living. We cannot rest contentedly with the knowledge that most of our veterans of World War I, live at an economic level which, at today's costs, can only be called poverty. Almost half of our World War I veterans and/or their widows have less than $1,000 annual income. This group of 1917-18 veterans living today have social security benefits and nonservice veterans' pensions as their mainstay of income. The No. 1 problem of America's veterans is how to meet the cost of health care at a time when income is lowest and potential or actual disability at its highest. Again and again, veterans and widows have emphasized to us that their greatest fear was of catastrophic or chronic illness which would wipe out their savings. Most veterans and widows of World War I have liquid assets of less than $500. The retired veteran and widow, as a rule, do not have hospitalization and/or surgical insurance. It is with retirement that the health care problem is aggravated by substantial reduction in financial resources. How adequate is the protection for those that are covered by hospital and surgical insurance? For example, the 1957 OASI beneficiary survey revealed that among those insured who were hospitalized, more than 7 out of 10 had less than one half of their total medical costs met by insurance. For all beneficiary couples, insurance covered part or all of the total costs for only 14 percent. This survey, limited to OASI beneficiaries, and thus to persons in better financial conditions than most other retired individuals suggests that insurance coverage, in the vast majority of cases, meets very little of the medical costs of elderly persons. The weaknesses in such policies are many, for example: They are not properly suited to the dominant health problems of the aged, namely, chronic illnesses. Nor are they based on any principle of preventive medicine, since they rarely include any provision for outpatient diagnoses. The typical $10-per-day maximum for hospital costs falls far short of the usual $25-to-$30 daily charge. The 1959 average was $32. The waiting period requirement for protection against the costs of preexisting health ailments constitutes a serious, sometimes tragic, obstacle to worthwhile coverage. Health insurance policies do not contain assurances of lifetime protection. These inadequacies are not criticism, of the insurance industry's willingness to help solve the problem. Instead the industry's inability to do so is due to the nature of the problem, namely, the fact that the aged are a low-income, high-cost, high-risk population, and that in order to provide adequate health insurance for them, private insurance programs in the country would be forced to charge prohibitive premiums. Even the typical $6.50 per month, can be a sizable outlay from the money income of retired couples, too frequently at the price of other necessities. The aged, with their many chronic conditions, need a greater volume of drugs and medicine, on a steady rather than an intermittent basis. The records are replete with examples of older men and women putting off medical care because of their fear of the costs of prescribed medicines deemed essential by their physician for a chronic condition. |