We feel that such legislation was discriminatory, and we urge that immediate corrective action be taken by this committee. As to death compensation: A class of beneficiary apparently overlooked in legislation in recent years is the childless widow in receipt of compensation for a service-connected death. The rate of compensation for this class has been fixed at $75 monthly since July 1, 1948, while the rate for a widow with one child was increased on October 10, 1949 from $100 to $105, and from $15 to $25 for each additional child. On May 23, 1952, the rate was again increased to $121 for the widow with one child with $29 for each additional child. Assuming that the compensation increases were granted in recognition of the increased cost of living, it is difficult to understand why the widow with no children was neglected. Even her counterpart in the non-serviceconnected death pension category was increased from $42 to $48 monthly on May 23, 1952. The bill, H. R. 6934, in part would grant an increase of $10 monthly to widows with no children. We endorse this portion of the bill and urge that it be reported by the committee. There are several bills pending which propose to amend veterans' regulation 1 (a) to provide additional statutory awards for specific service-connected disabilities. AMVETS primary concern in this field is for the veteran who has lost an eye in addition to an arm or leg. Under existing law, the veteran who has lost or lost the use of an eye is entitled to a statutory award of $47 monthly in addition to the prescribed schedular rating for that disability. The veteran who has lost or lost the use of an arm or leg also receives a statutory award of $47 monthly. The veteran who suffers the loss of an eye and an arm or leg, however, still receives only one statutory award of $47 monthly. Had he sustained the loss. of all 3, that is, an eye, an arm and a leg, he would receive, in effect, 3 statutory awards of $47 monthly. The bill, H. R. 7712, would correct this inequity by granting the same statutory award for the loss or loss of use of an eye and an arm or leg as that presently in effect for both feet or both hands, 1 hand and 1 foot, or blindness in both eyes. We, therefore, urge its favorable consideration. AMVETS endorse the general principles contained in the bills H. R. 47 and H. R. 1536 which will increase the allowance payable in connection with the funeral and burial of deceased veterans. This benefit has remained at $150 since July 1946. In our opinion, the original grant of this benefit was meant to cover practically the entire cost of burial. The present figure of $150 would hardly serve as a downpayment on the average cost of burial today. Our specific mandate on this subject calls for an increase of $100 and we urge favorable consideration of this request. Service connection (psychosis): We respectfully invite your attention to an AMVET national convention mandate which reads: We recommend the enactment of legislation by amendment to part I, Veterans Regulation 1 (a) as amended, providing for a 2-year presumptive period for psychosis. AMVETS were extremely concerned with the action taken by the Congress in the enactment of Public Law 239 of the 82d Congress. For the first time in history the Congress through the medium of law saw fit to determine that certain veterans' disabilities were service connected for purposes of outpatient and hospital treatment only. These same veterans are not entitled to compensation for their service connected disability. This was a radical departure from the historic manner of evaluating service-connected disability. The Congress has already conceded that this disability diagnosed within 2 years of separation is caused by military service. It follows, therefore, that it should be compensated accordingly. In our opinion, this committee should appraise the action taken in the closing days of the 1st session of the 81st Congress and seriously consider reporting a bill that will authorize the payment of compensation to the service-connected psychotics involved. At The bills, H. R. 34, H. R. 38, and H. R. 2338, would eliminate a disparity existent in the eligibility requirements for non-service-connected death pensions for World War I dependents when compared with the same benefit for World War II and Korean veterans. the present time, widows and children of World War I veterans may qualify for non-service-connected pension if the deceased veteran served 90 days and was released under conditions other than dishonorable. The World War II and Korean dependents, however, qualify only if the deceased veteran has a disability which is service connected. We of AMVETS fail to see any logical reason for the continuation of the variations in basic eligibility requirements for this benefit. Your favorable action on such a measure is requested. An inequity now existent in regard to the computation of annual income for death pension purposes is the inclusion therein of the proceeds of commercial life insurance. We believe that such insurance is not properly a factor for consideration for these reasons: Insurance is not income in the normal sense. It is in the nature of a savings or investment for an eventuality. In the majority of cases, matured commercial insurance rarely exceeds $2,000 per case. Medical expenses preceding death and burial expenses following death in most instances liquidate the small assets derived from insurance. Under the present interpretation of income, however, even a $2,000 policy may bar entitlement to pension in the year in which it is received. The failure to qualify for death pension during the first year of bereavement because of this insurmountable obstacle affects dependents at that particular time of life when readjustment is most difficult. The soundness of the position that commercial insurance should not be a factor in determining entitlement to death pensions is adequately borne out by the fact that the Congress has already excluded income from national service life insurance, United States Government life insurance and servicemen's indemnity in this computation. In our opinion, insurance is insurance whether written by the Federal Government or a commercial agency. In view of these conditions, we respectfully urge this committee to give favorable consideration to H. R. 6181. AMVETS has historically supported pensions for needy permanently and totally disabled non-service-connected veterans. Today we reaffirm that support, believing it to be a just and proper obligation of the Federal Government. However, we would stress to this committee that need, unemployability and disability are the fundamental tests which should be met in qualifying for this benefit. In our opinion, attained age should receive consideration, and under the present law and regulation it does receive such consideration. Current regulations recognize attained age as prima facie evidence of unemployability by lowering the percentage of disability requirements at certain ages to more easily qualify for pension. We think this is proper and we, therefore, disapprove of those pending bills which would eliminate need, unemployability or disability as elements of entitlement. Present laws are generally sound; present regulations are generally liberal; present public opinion generally supports existing theories. Drastic revision of such sound, liberal policies and theories in the absence of compelling reasons not now known, would, in our opinion, work to the detriment of veterans' benefits. We therefore oppose any such legislation. In closing, we wish to emphasize again the position of AMVETS outlined by its national service council and ratified by the national convention with respect to veterans' benefits. We will support legitimate veterans' benefits but will oppose any proposals that, in our opinion, are not in consonance with the economy of our country and the Nation's obligation to its defenders. We respectfully submit that our comments today are in line with that objective. Mr. RADWAN. Mr. Secrest? Mr. SECREST. I have no questions. I have something I would like to insert in the record at this time. It will take only a second. I would like to point out this: in 1946 the total expenditures of the Veterans' Administration on all veterans was $4,425 million; in 1947, $7,470 million; in 1948, $6,497 million; in 1949, $6,660 million; in 1950, $6,627 million; in 1951, $5,295 million; in 1952, $5,005 million; in 1953, $4,354 million; and the bill we passed yesterday, $3,700 million. I think in considering the costs of these bills that we are going to report out, we should take into consideration the overall annual expenditures that have been going to veterans. We could report many of these bills at a very considerable cost and still be far below the appropriation for 1953. Mr. RADWAN. The Chair wants to thank you, Mr. Holden, and also at this time I want to congratulate you on your appointment and wish you well in your new position. Mr. HOLDEN. Thank you, Mr. Chairman, and again we appreciate the opportunity for having been heard. Mr. RADWAN. The Chair now recognizes Mr. Ketchum, of the VFW. STATEMENTS OF OMAR B. KETCHUM, DIRECTOR OF THE NATIONAL LEGISLATIVE SERVICE OF THE VETERANS OF FOREIGN WARS OF THE UNITED STATES, AND ADIN M. DOWNER, ASSISTANT TO DIRECTOR, VFW Mr. KETCHUM. Mr. Chairman and members of the committee, my name is Omar B. Ketchum. I am director of the national legislative service of the Veterans of Foreign Wars of the United States. I have with me here this morning, one of my assistants, Mr. Adin M. Downer. Mr. Chairman, we are grateful for the opportunity and privilege of appearing before your subcommittee on this most vital series of bills. upon which you are holding hearings. Mr. SECREST. Mr. Chairman, that is a quorum call; and I don't think it would be fair to you to let you go 5 more minutes and then have to break up the meeting. Mr. RADWAN. I was just going to let Mr. Ketchum make his introductory remarks. Mr. KETCHUM. I appreciate that very much, Mr. Secrest, because I would like to have the opportunity to make a comprehensive statement before this subcommittee. Mr. RADWAN. The subcommittee will meet again tomorrow morning providing the House is in session tomorrow, which is very probable. But in the event the House is not in session tomorrow, then the subcommittee will adjourn at this point and meet again Tuesday, at 10 o'clock. Mr. KETCHUM. I was afraid of that this morning when they broke the order this morning, because I am tied up Tuesday, and I had the apprehension and feeling that that was probably what would happen. Mr. SECREST. I think you will be here tomorrow. Mr. RADWAN. But if not, we will make some adjustment to accommodate you, Mr. Ketchum. Mr. SECREST. We would be happy to come back this afternoon but the interest_bill and the housing bill are up on the floor, and this committee, I want the record to show, is unanimous in favor of taking out of the housing bill the increased interest for veterans' loans and the denial of veterans' preferences in the purchase of housing. Mr. KETCHUM. As I understand it, Mr. Chairman, if the House is in session tomorrow, this committee will convene at 10 o'clock, and I will have the opportunity to be the first witness? Mr. RADWAN. That is correct, and we now stand adjourned until tomorrow at 10 o'clock, unless the House is not in session, in which case we will make arrangements to accommodate you. (Whereupon, at 11:10 a. m., the hearing was adjourned, subject to the call of the Chair.) COMPENSATION AND PENSION BILLS FOR VETERANS AND THEIR DEPENDENTS FRIDAY, APRIL 2, 1954 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON COMPENSATION AND PENSION, Washington, D. C. The subcommittee met at 10 a. m., pursuant to recess, in room 356, Old House Office Building, Hon. Edmund P. Radwan, chairman of the subcommittee, presiding. Mr. RADWAN. The subcommittee will come to order. We will resume where we left off and recognize Mr. Omar Ketchum of the Veterans of Foreign Wars. STATEMENTS OF OMAR B. KETCHUM, DIRECTOR OF THE NATIONAL LEGISLATIVE SERVICE, AND ADIN M. DOWNER, ASSISTANT TO THE DIRECTOR, VETERANS OF FOREIGN WARS-Resumed Mr. KETCHUM. Mr. Chairman, I shall resume my testimony which I briefly began yesterday. My name is Omar B. Ketchum, the director of legislation for the Veterans of Foreign Wars. Associated with me here this morning is Adin M. Downer, assistant legislative officer. Mr. Chariman, we have no prepared statement for the principal reason that there are so many bills involved in this hearing that a prepared statement, I am afraid, would have been rather lengthy in attempting to cover all of them. The bills pending before the committee mostly deal with compensation and pension and no doubt all of them are worthy and deserving. Some of them are more liberal than others and the action of the committee on these bills will depend to a large extent on how generous the committee decides to be and what you think the Congress would approve in the event you report bills out. I think one of the first things this committee should consider, and undoubtedly will consider, is the problem of cost and I wanted to take a few minutes here this morning to discuss the problem of cost. Yesterday morning I was very interested when a distinguished member of this committee who is present this morning read into the record some costs of the overall veteran program for the past, I think, 10 years. It was interesting to note that the appropriation which was approved 2 days ago by the House of Representatives for the Veterans' Administration represented approximately a 50-percent reduction in cost of the overall veteran benefit program from 1947. If Mr. Secrest's figures were accurate yesterday and I am not questioning |