$63 and $75, to $90; and reduce from $129 to $120 the monthly rate of pension for aid and attendance. It would also change the character of service requirement to that of honorable discharge from active service; and modify the bar to payment of pension for disability due to a veteran's own willful misconduct or vicious habits, by requiring only that disability be not due to his own misconduct.

With general reference to the veterans' pension benefits proposed under the bill, your committee will undoubtedly desire to consider the basic purpose of non-service-connected disability pension for World War I veterans. This pension is intended to afford a modest allowance to seriously disabled veterans who are in limited financial circumstances but whose condition is not the outgrowth of their war service. It is not intended to provide full support. The granting of pension based on age alone, or for partial disability not due to service, and without regard to financial need, would not appear to be consistent with the basic purpose for which the pension was established.

Under the act of June 28, 1934 (48 Stat. 1281), as amended (38 U. S. C. 503 et seq.), non-service-connected death pension is payable to the widow, child, or children of a veteran who served in World War I whose death was not due to service therein, but who at the time of death was receiving or entitled to receive compensation or retirement pay for disability incurred in such service in line of duty. It is also payable to such dependents in the case of a World War I veteran who, having served 90 days or more during such war period, was discharged under conditions other than dishonorable (or having served less than 90 days was discharged for disability incurred in line of duty during such service), and dies or has died from a disease or disability not service-connected. Eligibility for such pension is subject to an annual income limitation of $1,400 with respect to any widow without child, or to a child, or $2,700 with respect to a widow with a child or children. The monthly rates of pension are as follows: Widow with no child, $48; widow with 1 child, $60, with $7.20 for each additional child; no widow but 1 child, $26; no widow but 2 children, $39, equally divided; no widow but 3 children, $52, equally divided; with $7.20 for each additional child, the total equally divided.

The definitive provisions relating to service requirements governing payment of non-service-connected disability pension to veterans of World War I previously set forth in this report are equally applicable in the payment of non-service-connected death pensions under the act of June 28, 1934.

Section 3 of the act of May 13, 1938 (52 Stat. 353), as amended by section 3 of the act of December 14, 1944 (58 Stat. 804; 38 U. S. Č. 505a), provides that a widow of a World War I veteran to be entitled to death compensation or pension must have been married prior to December 14, 1944, or 10 or more years, to the person who served; that no compensation or pension shall be paid to a widow unless there was continuous cohabitation with the person who served from the date of marriage to date of death, except where there was a separation which was due to the misconduct of or procured by the person who served, without the fault of the widow; and that compensation or pension shall not be allowed a widow who has remarried either once or more than once, and where compensation or pension is properly discontinued by reason of marriage it shall not thereafter be recommenced.

Section 3 of the bill would establish a new system of non-serviceconnected death pension benefits for widows and children of persons who served in the military or naval service of the United States at any time between April 5, 1917, and July 3, 1921, and who were honorably discharged from such service after having served 90 days or more, or who regardless of their service were discharged for a disability incurred in the service or died in the service. The rates would be $48 monthly for those widows who married the veterans before the date of enactment of the bill, or $60 monthly for those widows who were the wives of the veterans before July 3, 1921, at a time when the veterans were serving in the military or naval service of the United States, with $7.20 monthly for each child under 16 years of age. Where no widow is entitled, the bill would authorize $48 monthly to a child under 16 years of age, with $7.20 monthly additional for each additional child under the age of 16 years; except that entitlement of a helpless child would continue regardless of age during the period of his disability. From the standpoint of comparison of H. R. 1604 with the provisions of existing law relating to non-service-connected death pensions for widows and children of veterans of World War I, the major effects of its enactment would be to enlarge the class of eligible dependents by extending the period of pensionable service; modify the rules for computing such service; grant death pensions to dependents of persons who die while in the service but whose deaths are not due to such service; and modify the bar to payment of death pension to remarried widows by permitting such payment under certain conditions. It would also eliminate the income limitation and continuous cohabitation requirements; extend the marriage delimiting date from December 14, 1944, to the date of enactment of H. R. 1604 and eliminate the alternative 10-year marriage provision; change the character of service requirement to that of honorable discharge from active service; and change the effective dates of awards in certain cases. Further, it would establish a special rate of non-service-connected death pension for widows who were the wives of the veterans before July 3, 1921, at a time when they were serving in the Armed Forces; increase or decrease the pension rates for widows with 1 or more children, depending upon whether they are entitled to the mentioned special rate for widows; increase the rates of pension for a child or children where there is no widow; reduce from 18 years to 16 years the age at which entitlement for a child in most cases terminates; and eliminate the provision for continued entitlement for a child to the age of 21 while pursuing a course of instruction in an approved educational institution.

As in the case of permanent and total disability pension for veterans of World War I, it has been the consistent policy of the Congress to restrict death pension benefits to their widows and children who are in limited financial circumstances, the theory of the legislation being to provide some measure of support to those primary dependents who survive the veteran and who are in need. The granting of death pension not subject to an income limitation requirement, would not appear to be consistent with the basic purpose for which the pension was established.

It appears that under section 4 of the bill, if enacted, pension under the act would be paid pursuant to an application therefor filed in the Veterans' Administration, effective the first day of the first calendar

month following the month in which the act is enacted or the date of filing application, whichever is the later.

The history of pension legislation for veterans of World War I and their dependents discloses that, except as to those persons who served in Russia, it has been the consistent policy of the Congress to require service on or before November 11, 1918. The enactment of H. R. 1604 would constitute a deviation from this general policy by authorizing the payment of disability and death pensions based solely upon service subsequent to November 11, 1918, which was not in Russia. In this connection the bill would create an anomaly by permitting certain service to be counted as World War I service for age or disability or death pension purposes which is not recognized as such for disability or death compensation purposes under existing law. Further, it is noted that the proposed rate of pension for 10 percent non-service-connected disability, $28.80, would exceed the rate of compensation, $15.75, payable under existing law for 10 percent service-connected disability; and further, that the provision for payment of non-service connected death pension to certain remarried widows would be more liberal than the provision of existing law barring payment of service-connected death compensation to a remarried widow.

H. R. 1604 has been drafted as an independent enactment rather than as an amendment to existing legislation on the general subject. If enacted, the bill would create an overlapping with existing laws, thereby complicating our administrative procedures. In addition, the proposal is lacking in penal provisions or in adequate administrative provisions. It appears, therefore, that its enactment would result in administrative problems that are not present under existing law which contain provisions of the type referred to.

Enactment of H. R. 1604 might serve as a precedent for requests to liberalize pension benefits for veterans of World War II, or of service on or after June 27, 1950, who are currently eligible for pension under the same law as applies to veterans of World War I. It might also bring about increased requests for liberalizing the death pension programs for the dependents of those veterans.

One of the primary factors leading to the Economy Act of March 20, 1933, was the current and anticipated effect of the act of July 3, 1930, which added certain provisions to section 200 of the World War Veterans Act, 1924, as amended, granting disability allowance (pension) benefits to World War I veterans for non-service-connected permanent partial disabilities of 25, 50, and 75 percent, and for nonservice-connected permanent and total disability. The act of March 20, 1933, repealed certain laws granting benefits to veterans and their dependents, including the mentioned section 200 of the act of July 3, 1930. Veterans' regulations promulgated under the repealing act now provide pension benefits for only non-service-connected permanent and total disability. There is for consideration whether enactment of a bill such as H. R. 1604, which has a greater potential magnitude than the act granting disability allowances, might not impose so great a financial obligation on the Government as to possibly lead to a repetition of the Economy Act of 1933, which affected both the then existing compensation and pension programs.

Although, according to its title, the bill purports to provide pensions for veterans of World War I and their dependents equivalent to

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pensions based on service in the Spanish-American War, its substantive provisions differ with those of the service pension laws as, for example, with respect to rates, service requirements, and marriage requirements. In connection with the purpose of the bill as reflected in the title, attention is invited to the following statement released by the White House at the time the President approved the bill (H. R. 6995, 74th Cong.) which became the act of August 13, 1935 (49 Stat. 614; 38 U. S. C. 368):

The President, in signing today H. R. 6995, a bill reenacting laws dealing with pensions granted to veterans and the dependents of veterans of the SpanishAmerican War, the Philippine Insurrection, and the Boxer Rebellion, made clear the definite distinction between legislation relating to veterans of early wars and the veterans of the World War.

The Congress on many occasions has recognized that because of the complete absence of any system or policy initiated during or immediately following the Civil War, the Indian wars, and the Spanish-American War, and because of lack of adequate medical care from the point of view of modern standards, the veterans of these earlier wars could be compensated and taken care of only through some form of pension system.

In the case of the World War, however, the Congress at the very beginning of the war adopted an entirely new system of care and benefits. This new system applied to all who fought in the World War, extended to them additional compensation if they had dependents, as well as insurance, hospitalization, vocational rehabilitation, and the adjusted-service certificates (the bonus).

The veterans of the Spanish-American War, now approaching an average age of 62 years, had none of these advantages except hospitalization in recent years. Their case, therefore, cannot be compared to the case of World War veterans. For the same reason the approval of this bill establishes no ground or precedent for pensions for the World War group; theirs is an entirely different case.

There are some inequalities involved in this legislation but the President recognizes the fact that the the Spanish-American veterans were once on the rolls, under prior legislation, that they are approaching advanced age, that their disabilities are increasing.

The President's action today is taken appropriately on the anniversary date of the occupation of Manila by the American forces.

To further assist your committee in its consideration of the bill, reference is made to House Committee Print No. 299, 82d Congress, Historical Development of Pensions for Veterans and Their Dependents, dated July 18, 1952, insofar as it relates to pension programs for World War I veterans and their dependents, and to the exhibit entitled "Projected Number of Living World War I Veterans, by Age: 1955-95, as of June 30," which was furnished to your committee as an enclosure to the Veterans' Administration report dated September 11, 1953, on H. R. 4596, 83d Congress (Committee Print No. 151). It all eligible veterans apply for and are paid initial or increased benefits proposed by section 2 of the bill, it is estimated that the first year's cost for such pensions would approximate $1,600 million, affecting about 3 million veterans. Although there are many factors which make it difficult to make an estimate of the cost of dependents' pensions under section 3, and while not submitted as a practicable estimate, preliminary study of the best available data indicates the first year's cost of such dependents' pensions would not exceed $40 million. Thus, the first year's cost of H. R. 1604 is estimated at approximately $1,640 million.

It is my opinion that enactment of H. R. 1604 would not be in the best interests of the Nation as a whole, or veterans and their dependents in particular. My position in this matter stems from the bill's cost, as well as its administrative and precedential aspects.

Advice has been received from the Bureau of the Budget that there would be no objection to the presentation of this report to the committee and that the Bureau concurs in recommending against favorable consideration of this legislation.

Sincerely yours,

H. V. HIGLEY, Administrator.

[No. 205]

COMMITTEE ON VETERANS' AFFAIRS, HOUSE OF REPRESENTATIVES

VETERANS' ADMINISTRATION, Washington 25, D. C., March 17, 1954.

Hon. EDITH NOURSE ROGERS,

Chairman, Committee on Veterans' Affairs,

House of Representatives, Washington 25, D. C.

DEAR MRS. ROGERS: This is in reply to your request for a report on H. R. 8041, 83d Congress, a bill to provide benefits under the laws administered by the Veterans' Administration based upon service in the Women's Army Auxiliary Corps under certain conditions. The purpose of the bill is to grant benefits under laws administered by the Veterans' Administration to certain persons who served in the Women's Army Auxiliary Corps. It would be limited to any person who (1) served in the Women's Army Auxiliary Corps at least 90 days, and (2) prior to the establishment of the Women's Army Corps was honorably discharged for disability which rendered her unfit to perform further service in either the Women's Army Auxiliary Corps or the Women's Army Corps. If these conditions were met, the individual would be deemed to have been in the active military service during the period of service in the Women's Army Auxiliary Corps for purposes of laws administered by the Veterans' Administration.

The bill contains provisions against the accrual of monetary benefits for any period prior to its enactment; precludes payment of compensation or pension concurrently with United States employees' compensation based on such service; and requires an election of benefits where the person is eligible for compensation or pension by reason of this measure and is also eligible for compensation benefits under the United States Employees' Compensation Act, as amended.

It is assumed that the reference to the Women's Army Corps is intended to mean the Women's Army Corps established as a part of the Army of the United States by Public Law 110, 78th Congress, approved July 1, 1943, as distinguished from the Women's Army Corps created as a part of the Regular Army by the Women's Armed Services Integration Act of 1948 (Public Law 625, 80th Cong.). If the bill is further considered, it may be desirable to include specific reference to the Women's Army Corps established by Public Law 110, 78th Congress. It is noted also that the bill covers persons honorably discharged for disability, without restriction to discharge for disability incurred in line of duty.

Section 12 of the act of May 14, 1942 (Public Law 554, 77th Cong.), which created the Women's Army Auxiliary Corps, provided that the corps was not to be a part of the Army but would be the only women's