TO AMEND CERTAIN LAWS AND VETERANS' REGULATIONS AFFECTING WORLD WAR VETERANS AND THEIR DEPENDENTS

FRIDAY, FEBRUARY 26, 1937

HOUSE OF REPRESENTATIVES,

COMMITTEE ON WORLD WAR VETERANS' LEGISLATION,

Washington, D. C.

The committee met at 10:30 a. m., Hon. John E. Rankin (chairman) presiding.

MAN.

The CHAIRMAN. The committee will come to order.

Captain Miller, do you want to make a further statement this morning?

Captain MILLER. Mr. Chairman, I will have concluded my statement in the record, but you requested that I be here for questions, if that is deemed necessary.

The CHAIRMAN. I have no questions. If the lady from Massachusetts has none, we will proceed with the next witness.

The next witness is Captain Kirby, national legislative chairman of the Disabled American Veterans.

Let me say to all of the witnesses, in advance, that if you have your material written, you can read what you want and put the rest of it in the record.

STATEMENT OF CAPT. THOMAS KIRBY, NATIONAL LEGISLATIVE CHAIRMAN, DISABLED AMERICAN VETERANS

Captain KIRBY. Mr. Chairman, may I first present for the record H. R. 1537, introduced by the chairman of this committee under the legislative program adopted by the Sixteenth National Convention of the disabled American Veterans at Milwaukee last summer.

The CHAIRMAN. Without objection, it is so ordered.

(H. R. 1537 is as follows:)

[H. R. 1537, 75th Cong., 1st sess.]

A BILL To amend certain laws and veterans' regulations affecting World War Veterans and their dependents, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of Americaa in Congress assembled, That that part of paragraph VI (A), Veterans' Regulation Numbered 6, as amended by Veterans' Regulation Numbered 6 (c), promulgated under the provisions of Public Law Numbered 2, Seventy-third Congress, March 20, 1933, preceding the first proviso, is hereby repealed insofar as it pertains to compensation and emergency officers' retirement pay being received by World War veterans for service-connected disabilities.

SEC. 2. Notwithstanding any provision of law or veterans' regulation, the term "widow" of a World War veteran under the laws providing for their relief shall mean a person who was married to the veteran prior to July 3, 1935, and who has not remarried. The Administrator of Veterans' Affairs is hereby au

thorized and directed to review and adjudicate claims heretofore or hereafter filed in the Veterans' Administration where the marriage to the veteran occurred subsequent to July 2, 1931, and to pay benefits from the date of the veteran's death, if otherwise entitled, and regardless of the date of the receipt of the claim therefor by the Veterans' Administration.

SEC. 3. That, on and after the enactment of this Act and notwithstanding any provision of law or veterans' regulation, in no event shall any person by reason of willful misconduct be denied any of the service connected, including presumptively service connected, benefits under the laws providing relief for veterans of the World War and their dependents: Provided, That such misconduct did not interfere during service with the full performance of military or naval duty: Provided further, That all reasonable doubts shall be resolved in favor of the claimant, the burden of proof being on the Government.

SEC. 4. That section 1 of Public Law Numbered 844, Seventy-fourth Congress, June 29, 1936 (49 Stat. 2031), is hereby amended to read as follows:

"SEC. 1. That, notwithstanding the provisions of Public Law Numbered 484, Seventy-third Congress (U. S. C., 1934 edition, title 38, secs. 503-507), in no event shall the widow, child, or children otherwise entitled to compensation under the provisions of that Act be denied such compensation if the veteran's death resulted from a disease or disability not service-connected, and at the time of the veteran's death he was receiving or entitled to receive compensation, pension, or retirement pay for disability presumptively or directly incurred in or aggravated by service in the World War: Provided, That compensation as provided by this section, as amended, shall not be payable effective prior to the receipt of application therefor in the Veterans' Administration in such form as the Administrator of Veterans' Affairs may prescribe and in no event prior to the date of enactment of this -amendatory Act."

SEC. 5. That, effective on the 1st day of the month next following the date of enactment of this Act, the rates of death compensation payable under the provisions of existing laws or veterans' regulations to a surviving widow, child, or children, or dependent parents, now on the rolls or hereafter to be placed on the rolls as the surviving widow, child, or children, or dependent parents of any World War veteran who died as a result of injury or disease incurred in or aggravated by active military or naval service in the World War, shall be as follows: Widow but no child, $60; widow and one child, $75; widow and two children, $87 (with $10 for each additional child); no widow but one child, $30; no widow but two children, $54 (equally divided) (with $20 for each additional child; total amount to be equally divided); (where there is a widow or child) dependent mother or father, $30, or both $15 each; (where there is no widow or child) dependent mother or father $60, or both $30 each.

SEC. 6. Notwithstanding any provision of law or veterans' regulation, where pension is payable to a World War veteran on account of non-service-connected, permanent total disability, such pension shall be paid in addition to any compensation payable for service-connected disease or injury not considered in determining the permanent total rating.

SEC. 7. Notwithstanding any provision of law or veterans' regulation, except as to emergency officers' retirement pay, reenlistment in the military or naval service on or after November 12, 1918, and before July 2, 1921, shall be considered as World War service under the laws providing benefits for World War veterans and their dependents.

SEC. 8. That a new section be added to title III, World War Veterans' Act, 1924, as amended (U. S. C., title 38), to be known as section 312 and to read as follows:

"SEC. 312. Without prejudice to any other cause of disability, the permanent loss of the use of both feet, or both hands, or both eyes, or of one foot and one hand, or one foot and one eye, or one hand and one eye, or the loss of hearing in both ears, or the organic loss of speech, or becoming permanently helpless or permanently bedridden, shall be deemed total permanent disability for insurance purposes. This section shall be deemed to be in effect as of October 6, 1917, and shall apply to all automatic insurance, all yearly renewable term insurance, and to all United States Government life (converted) insurance heretofore and hereafter issued."

SEC. 9. That that part of the second proviso, section 28, Public Law Numbered 141, Seventy-third Congress, March 28, 1934 (48 Stat. 524; U. S. C., title 38, sec. 722), which limits payment of compensation thereunder to 75 per centum of the payments otherwise authorized, is hereby repealed and the Administrator of Veterans' Affairs is hereby authorized and directed to pay 100 per centum of the compensation otherwise authorized under Public Law Numbered 141, Seventythird Congress.

SEC. 10. That in any case in which suit has been or is hereafter brought on a claim under a contract of yearly renewable term insurance or of United States Government life (converted) insurance, and a court of competent jurisdiction has entered or may hereafter enter a final judgment that the insured became or has become totally and permanently disabled for insurance purposes while such contract sued upon was in force, payments of benefits in accordance with the terms of such contract shall be made and shall continue until said contract is fully satisfied: Provided, however, That in the event that the Veterans' Administration after investigation and hearing granted to the insured, if requested by him, determines that the insured has recovered from his total and permanent disability and by a duly authorized employee or agency makes a finding to this effect, the case shall be referred by the Veterans' Administration to the Department of Justice and the Department of Justice, through the proper officers, may institute an action, either in the District Court of the United States in and for the district in which the insured resides or in the District Court of the United States for the District of Columbia, to terminate such payments under such judgment, and jurisdiction is hereby conferred upon such courts to hear and determine all such controversies: Provided further, That payment of total and permanent disability benefits in such cases shall be continued until a court of competent jurisdiction has finally decreed or entered judgment that the insured has recovered from his previous condition of total and permanent disability: Provided further, That in event that such action is instituted and the court finds that the insured has not recovered from his condition of total and permanent disability and is entitled to payment of benefits under his contract of insurance, the court as a part of its judgment or decree shall determine and allow reasonable fees to the attorney or attorneys of the insured for defending such action, such fees to be paid to the attorney or attorneys by the Veterans' Administration out of the military and naval insurance appropriation and not charged against the insured: And provided further, That when an action to terminate payment of total and permanent disability benefits under a contract of yearly renewable term insurance or United States Government life (converted) insurance results in a judgment or decree in favor of the insured, no further contest shall be instituted by any agency of the United States. This section shall be deemed to be in force and effect as of October 6, 1917.

SEC. 11. That in any suit or action now pending or hereafter brought under the provisions of section 19, World War Veterans' Act, 1924, as amended, in which the final judgment is against the United States, the costs shall be assessed against and paid by the United States by order of the Attorney General of the United States from the appropriations for defense of insurance suits.

SEC. 12. That where service connection of any World War disability has been established, such service connection shall not be severed except in case of proven fraud, where the fraud was a deciding factor in granting such service connection, or where obvious error of pertinent fact exists.

SEC. 13. That section 304, World War Veterans' Act, 1924, as amended (44 Stat. 799; U. S. C., title 38, sec. 515), is hereby amended to read as follows:

"In the event that all provisions of the rules and regulations other than the requirements as to physical condition of the applicant for insurance have been complied with an application for reinstatement, in whole or in part, of lapsed or canceled yearly renewable term insurance hereafter made may be approved if made on or before June 30, 1945, or as to United States Government life insurance (converted insurance) if made within two years after the date of lapse or cancelation: Provided That the applicant's disability is the result of an injury or disease, or of an aggravation thereof, suffered or contracted in the active military or naval service during the World War: Provided further, That the applicant during his lifetime submits proof satisfactory to the Administrator showing that he is not totally and permanently disabled. As a condition, however, to the acceptance of an application for the reinstatment of lapsed or canceled yearly renewable term insurance, where the requirements as to the physical condition of the applicant have not been complied with, or for the reinstatement of the United States Government life insurance (converted insurance), the applicant shall be required to pay all the back monthly premiums which would have become payable if such insurance had not lapsed, together with interest at the rate of 5 per centum per annum, compounded annually on each premium from the date said premium is due by the terms of the policy: Provided further, That where on or before June 30, 1945, all of the requirements for reinstatement of yearly renewable term insurance under this section are complied with, except the payment of unpaid premiums with interest, and proof satisfactory to the Administrator is furnished showing the applicant is unable to pay such premiums with interest or some part thereof, the application may be approved,

and the amount of unpaid premiums with interest as provided in this section shall be placed as an indebtedness, without interest, against the insurance, to be deducted in any settlement thereunder: And provided further, That, except as provided in this section as amended, and section 301 of the World War Veterans' Act, 1924, as amended, no yearly renewable term insurance shall be reinstated after July 2, 1927, and upon approval of reinstatement as provided herein the applicant shall be required to contract for one of the forms of United States Government life insurance provided in section 301, World War Veterans' Act, 1924, as amended."

SEC. 14. That effective on the date of enactment of this Act loans heretofore or hereafter made by the insured under any contract of United States Government life insurance shall bear interest at a rate not in excess of 42 per centum per

annum.

SEC. 15. That that part of the first proviso of section 200, World War Veterans' Act, 1924, as amended (44 Stat. 793; U. S. C. 1934 edition, title 38, sec. 471), following the first sentence, pertaining to conclusive presumption of soundness, is hereby reenacted into law and shall apply to all claims of World War veterans and their dependents for compensation on account of service-connected disabilities.

SEC. 16. That any rating of World War service-connected disability which has been placed on a permanent basis and which has been in effect for a period of five years shall not be reduced: Provided, That this section shall apply to permanent ratings in effect on the date of enactment of this Act as well as permanent ratings made hereafter: Porvided further, That this section shall not be construed to affect claims for increased compensation.

SEC. 17. The Administrator of Veterans' Affairs is hereby authorized and directed to pay the following monthly hospital allowance to the wife, child, or children, and dependent parent or parents of any World War veteran hospitalized in a Veterans' Administration facility for the treatment of a disability not due to service: Provided, That claim for benefits under this section shall be filed by such person in the form prescribed by the Administrator of Veterans' Affairs, before the termination of the period of such hospitalization: Provided further, That the claimant for allowance authorized under this section shall furnish proof satisfactory to the Administrator of Veterans' Affairs that he or she is in indigent circumstances: And provided further, That where claim is duly filed during a period of hospitalization the award of allowance as provided herein, if otherwise authorized, shall be effective from the date of admission of the veteran to the Veterans' Administration facility but not prior to the date of enactment of this Act, and the Administrator of Veterans' Affairs may require proof of the continuation of the indigency under regulations to be prescribed by him: Wife, $10; wife and one child, $15 (with $5 for each additional child); no wife, one child, $10 (with $5 for each additional child); dependent mother or father, either or both dependent upon the veteran for support, $10 for each parent so dependent.

The definitions and administrative and penal provisions applicable to claims under Public Law Numbered 2, Seventy-third Congress, March 20, 1933, and amendments thereto, shall be applicable to this section.

SEC. 18. In the case of any office or employment by the Veterans' Administration in connection with which quarters, subsistence, heat, light, household equipment, laundry service, or other service or commodity is furnished any civilian officer or employee in such office or employment whose basic salary is less than $2,000 per annum may elect whether or not to make use of any such service or commodity (without regard to its availability or nonavailability), and in case of election not to utilize such service or commodity such officer or employee shall not be charged for such service or commodity. This section shall be applicable whether employees are appointed or employed before or after the date of the enactment of this Act. Nothing in this section shall change or affect any existing power of administrative officers to require necessary attendance of employees at post of duty. This section shall be effective the 1st day of the month following its enactment.

Captain KIRBY. With its membership composed exclusively of men whose disabilities are attributable to the World War, the Disabled American Veterans has consistently concerned itself with the problems of the service-connected veterans and their dependents. Hence, the foundation of this program rests upon the cause of the men handicapped by war service and their immediate families.

The first point on the D. A. V. program calls for full compensation for all men hospitalized for service-connected disabilities. Today

an unmarried veteran may be ordered to a hospital for treatment of his wartime ailment but, regardless of what compensation to which he might otherwise be entitled, he is paid but $15 per month while in the institution. We submit that during the period of hospitalization these men are in fact 100 percent economically handicapped and should be so compensated while receiving treatment.

We believe there should be an extention of time so the unmarried widow of any wartime disabled should be eligible for full benefits. As it stands today, if the marriage is subsequent to 1931, the widow is denied relief. While it is true that following earlier wars and when veterans became well advanced in age they married younger women, some of whom continue even today on the pension rolls, the limitation of the marriage date to 1931 is, in our judgment, too close to the end of the World War. Statistics show that about 80 percent of the soldiers, sailors, and marines were unmarried. This was caused by the policy of the Government to make a special effort to get single men into the military and naval service in 1917. The men returning with disabilities resulting from the war, in many cases, delayed marriage because of the impossibility of enjoying the usual social relationships. Today the veteran is at an average age of about 43 but, under the law as it exists, the average veteran who did not marry before he was 35 finds that if his wife outlives him she will be ineligible for the benefits that flow to the widows of those wedded closer to the armistice. We favor extension of this period for marriage to 1935. The CHAIRMAN. Captain Kirby, would it disturb you to be interrupted?

Captain KIRBY. Not at all.

The CHAIRMAN. That limitation does not apply to children, does it?

Captain KIRBY. No; but I am speaking of the unmarried woman. The CHAIRMAN. But the children are taken care of, regardless of when the injury took place?

Captain KIRBY. Yes.

The CHAIRMAN. What date would you suggest moving this up to? You would prefer to have some date fixed, would you not? Captain KIRBY. We offer 1935.

The CHAIRMAN. You have that in there?

Captain KIRBY. Yes; I say, "we favor extension of this period for marriage to 1935."

No more delicate subject comes before this committee than the matter of so-called misconduct. By delicate I do not mean that this condition should not be discussed with utmost frankness as we face stern reality rather than abstract theory. Thousands of men who served honorably and courageously in the time of national peril are today social outcasts, with the sins of their indiscretions being visited upon their innocent relatives. It is our opinion this issue should no longer be avoided by Congress. However, with the case properly diagnosed, we now come definitely to the question of the proper prescription to cure the ill. Our Milwaukee convention met this situation with the following proposal:

That in case of veterans who performed full military duty during the service, they shall not be denied any benefits to which they are otherwise entitled through the injection of alleged misconduct.

To state this differently, it means that the D. A. V. feels that if a man is entitled to compensation for a certain service-connected