Adjusted service and dependent pay, estimate of requirements for the fiscal years 1938 and 1939-Continued UNITED STATES GOVERNMENT LIFE INSURANCE TRUST FUND The next item which is the "United States Government life insurance trust fund," requires no appropriation by the Congress from the general revenues. This fund is self-sustaining from the premiums of policyholders and is included in the Budget merely to show the expected expenditures during the fiscal year and an authorization for such expenditures in order that a complete record of expected receipts and disbursements made through the Treasury Department may be maintained. The estimated expenditure for 1939 is $96,100,000, consisting of $33,500,000 to cover death losses, repayments, surrenders, and dividends; and $62,600,000 to cover the investment of remaining premiums. PERSONAL FUNDS OF PATIENTS The next item "Personal funds of patients" is also a trust fund and requires no appropriation by the Congress from the general revenues. This fund represents money belonging to patients in Veterans' Administration facilities which funds are held for safekeeping, and deposited in the Treasury in a special account for return to the patients upon demand. It is estimated that disbursements of this character during the fiscal year 1939 will amount to $2,585,000. GENERAL POST FUND The next and last item, "General post fund," is also a trust fund and requires no appropriation by the Congress from the general revenues. This fund represents accumulated benefits from past operation of stores, hotels, restaurants, canteens, and rentals from concessions. It represents, in addition, current gifts and bequests and proceeds of property left in the care of the Homes by former members, unpaid pension money standing to the credit of members of the Homes who die without pensionable heirs, and proceeds from the sales of effects of members of the Homes who die leaving no heirs or next of kin and without having disposed of their estates by will. Such funds are available upon authorization of the Administrator of Veterans' Affairs for construction of chapels, amusement halls, and for other objects to promote the comfort and welfare of the veterans at the various facilities in cases where no general appropriation is available. It is estimated that expenditures from this trust fund will be necessary during the fiscal year 1939 in the amount of $38,860. The balance of this trust fund as of June 30, 1937, is as follows: Bond investment_ Disbursing officer's cash. Total June 30, 1937.. $1, 191, 408. 42 47, 974. 92 6, 047. 94 1, 245, 431. 28 Mr. Chairman, this completes my general statement with reference to the appropriation items. In closing, I wish to express my appreciation to the committee for their patience and attention because I know that considerable time has been consumed, although I endeavored to be as brief as possible consistent with bringing to your attention facts which I feel should be made of knowledge to you. No doubt some questions have occurred to the members of the committee, and if you care to ask them now I will answer to the best of my ability; or should you desire to study these data and submit questions to me later, I will gladly and promptly furnish you with accurate information. Considering the books of charts, with which the committee has been furnished, and the record which we have produced, I think that you have a very complete picture of the work and the financial requirements of the Veterans' Administration. Mr. WOODRUM. General, on behalf of the committee, I want to thank you for this very splendid, thorough, and comprehensive presentation of the involved and complex duties of the Veterans' Administration. You, personally, and your budget officer always minimize our task in bringing us this information in such clear form. General HINES. Thank you, Mr. Chairman. INCREASE IN HOSPITAL AND DOMICILIARY CARE Mr. WOODRUM. Now, General, I would like to ask you a few questions, and I am sure other members of the committee will want to ask you a few questions. We may from time to time, before these hearings are closed, ask you for some further enlightenment. Commenting on the statement on the first page of your report which, of course, attracted the attention of the committee particularly, concerning the reduction in the gross amount of your appropriation, and referring to chart 3, under the "General" section, which is a breakdown, as I gather from your statement, there has been and there is to be expected an increase in the number of patients for hospital and domiciliary care as well as for claimants for pensions and benefits. That is to be expected, General? General HINES. We expect that. Mr. WOODRUM. You expected to have it for 1938 and you expect to have it again for 1939? General HINES. That is correct. Mr. WOODRUM. If we might have at this point-these charts show all these things very clearly-a comment on that: The gross total increase for 1939 anticipated, over 1938, of patients for hospital and domiciliary care, is what? General HINES. I covered that in my statement, but perhaps it ought to be summarized. Mr. WOODRUM. You did cover it in your statement, but I wanted to direct attention to it at this point in the record. General HINES. As of June 30, 1937, we had 47,459 hospital beds in Veterans' Administration facilities; and 16,187 domiciliary beds, which is a total of 63,646. Mr. WOODRUM. That is as of what date? General HINES. That is as of June 30, 1937. increase that to 74,144 as of June 30, 1939. crease of 7,376 additional hospital beds and domiciliary beds. Mr. WOODRUM. For 1939 over 1938? Now we will have to This involves an inan increase of 3,122 General HINES. For 1939, over those available at the beginning of the fiscal year 1938. Mr. WOODRUM. And that is for the very natural reason that the veterans are becoming older and more subject to disease? General HINES. It might be well if I explained somewhat in detail the situation with reference to hospitalization. The committee will recall that following the Economy Act the Congress liberalized certain legislation. That legislation provided in effect that all the of N. P. cases that is, neuropsychiatric cases will be cared for in Government hospitals, and all of the tubercular cases will be cared for.. It provides, however, that the general and surgical cases will be cared for in existing Veterans' Administration facilities. The policy that the Federal Board has followed, and the Congress has followed on their recommendation, has been, wherever we have found in a given area that the beds are not proportionate in the latter group that is, the general and surgical cases to the total number of men who served from that area, they have added on general beds. These, have been few in number, and the main increase in our load is brought about in the first group, the N. P. group, which we anticipate will continue to increase for many years yet to come. I have a chart here containing estimates of our expected loads. This chart was prepared in 1930. We are indicating on the chart the actual experience as against our estimated load for the various years. It is rather remarkable how close some of these have hit. For instance, suppose I give you at this point our estimate for the year 1936, which we can show in actual experience as against the estimate. The estimate of the Veterans' Bureau for 1936 showed a total hospital load of 45,916. Our experience was 43,648. Mr. DIRKSEN. You overshot by 2,300. General HINES. Yes; that was very close. However, a study made by the medical council, made up of rather eminent specialists, resulted in an estimate as against our 45,000, in that year, of a total of 90,545. Mr. WOODRUM. Perhaps the wish was father to the thought. General HINES. I think they estimated that we would construct general beds to meet the peak load, which we have not done. The reason we are getting more patients this year, and the reason we anticipate more next year, is twofold. The average age of the World War group, which makes up the majority of the cases, is now 45 years. Disabilities are occurring which did not occur in their younger years. Then, too, employment conditions are always reflected. I can almost predict when the veterans are losing jobs by watching the domiciliary load, particularly on the Pacific coast and in some of the homes in the eastern section, which have shown a marked increase in the last few months. INCREASE IN NUMBER OF PENSION AND COMPENSATION CLAIMS Mr. WOODRUM. When you come to pension claims, the number of claims has increased? General HINES. That is correct. Mr. WOODRUM. Certainly in the World War group; and it has decreased in all the other groups? General HINES. They are decreasing, so far as veterans are concerned, in all the groups except the World War group. Claims for dependents are increasing in number not only in the World War group, but also in the Spanish War and peacetime groups. Mr. WOODRUM. How many more World War pension claims do you anticipate for 1939 than you will have for 1938? You have given it to us in your general statement, but I want it in the record right at this point. General HINES. Take the service-connected group of the World War Mr. WOODRUM. Will you insert in the record a little summary showing the increases by groups? General HINES. Yes. Statement showing increase in estimated number of pension and compensation claims, fiscal year 1939 over 1938 |