WAR RISK INSURANCE ACT. AUGUST 27, 1919.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed. Mr. SWEET, from the Committee on Interstate and Foreign Commerce, submitted the following REPORT. [To accompany H. R. 8778.] The Committee on Interstate and Foreign Commerce, to whom was referred the bill (H. R. 8778) to amend and modify the war-risk insurance act, having considered the same, report thereon with a recommendation that it pass. The bill has the approval of the Treasury Department, as will appear by the letter attached and which is made a part of this report. Section 1 provides for the abolition of the office of Commissioner of Marine and Seamen's Insurance and the office of Commissioner of Military and Naval Insurance, and transfers their powers to the Director of the Bureau of War Risk Insurance, and increases the director's salary from five to ten thousand dollars, the salaries of each of the aforesaid commissioners now being $4,000 per annum. These salaries are done away with, thus saving to the Government $3,000 per annum and consolidating the various divisions under one head and placing all responsibility and the duties and powers of the aforesaid commissioners in the hands of the director. It also provides for the ultimate abolition of the two statutory divisions, viz, the Division of Marine and Seamen's Insurance and the Division of Military and Naval Insurance. In this connection your attention is called to a statement made by the Treasury Department, and also by the Secretary of the Treasury, which is as follows, to wit: The War Risk Bureau has become very much the largest bureau of the Government. There are at the present time about 13,500 employees working in the bureau here in Washington. The amount of money passing through the bureau last year amounted to something like $550,000,000. The Government's liability for insurance outstanding through the bureau is over $39,000,000,000. The bureau has been, I think, concededly one of the most difficult propositions ever undertaken by the Government to work out and to get in such shape that it would properly perform the functions for which it was intended. In the extent of personnel to be dealt with, in the amount of money to be handled, in the scope of the insurance field embraced within the activities of the bureau, and in the importance of the service to be performed to a very large number of American citizens, the director of the bureau has a task that is trying almost beyond description. Not only is a man of especial experience required, but a man also who possesses executive qualifications of the highest order and the vision to compass the far-flung possibilities of the bureau's future. It so happens that the present director of the bureau, selected by the Secretary of the Treasury because of his combination of all the qualifications necessary to fill the position with credit, is a poor man. After being mustered out of the Army last spring he had formed a connection in New York with the Finance & Trading Corporation, with the assurance of very large financial returns. He consented to relinquish this position under insistent pressure of the Secretary of the Treasury, to come to Washington to take charge of the bureau's affairs. He made it clear to the Secretary that while personally he would be glad to further give his time and his talents to the Government at a nominal salary, his family responsibilities required that he consider the financial phase of the matter, and that the salary of $5,000 per year would not enable him to properly discharge his financial obligations and to care for those dependent upon him. The Secretary stated that he believed the salary of the director should be increased to $10,000 per year, and that he would be very glad to use his influence with Congress to endeavor to have the salary increased to that amount. I append hereto, Mr. Chairman, a copy of letter addressed to you by the Secretary on this subject, which conveys his views: Hon. BURTON E. SWEET, House of Representatives. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, MY DEAR CONGRESSMAN: In connection with proposed legislation amendatory of the war-risk insurance act now pending before the Committee on Interstate and Foreign Commerce, I requested Assistant Secretary Shouse to very earnestly urge on my behalf an increase of salary for the position of Director of the Bureau of War Risk Insurance to $10,000. After a careful survey of the entire country, I selected the present director of the bureau as, in my opinion, the best equipped man of whom I knew to fill the position. I was able to persuade him to accept the very great responsibilities and very arduous duties of the place, although it required a decided sacrifice on his part. I told him that I should do what was in my power to induce Congress to increase the salary as above suggested, both because I realized that it is a position of such importance that it should carry the higher salary, and, further, because I felt it unfair to ask him to give up the prospects immediately in front of him and to enter the Government service at a lower wage. May I add to what has been previously said to the committee upon this subject my own earnest appeal that Congress may feel justified in fixing the salary of the director of the Bureau of War Risk Insurance at $10,000? Sincerely, yours, CARTER GLASS, Secretary. Let me make it very clear that Col. Cholmeley-Jones will continue as director of the Bureau of War Risk Insurance if the salary is not increased and even if the salary is reduced. He has taken hold of this job with all the fine energy and capacity which he possesses, and he is making a success of it. He will remain with the bureau as long as his services are needed. But as a matter of justice to the responsibilities of the position, to the tremendous amount of money involved both in the present expenditures and in the future insurance possibilities, to the service to the families of nearly 4,000,000 soldiers, sailors, and marines, that is being rendered by the bureau and will be rendered in the future, and in justice to the man himself, who has made a great sacrifice to take hold of the work of the bureau, I very earnestly urge favorable action upon the recommendation to increase the salary to $10,000. Sections 2 and 3 eliminate certain restrictions as to the child being included within the definition of "child" under the war-risk insurance act, viz, the requirement that it must have been adopted before the soldier entered the service, or, if illegitimate, that it shall have been born in the United States or its insular possessions after a given date. Section 4 adds to the other definitions in the war-risk insurance act a definition of the terms "father" and "mother." The terms "father" and "mother" include stepfather, stepmother, fathers and mothers through adoption, and persons who have stood in loco parentis to a member of the military or naval forces for a period of not less than one year. This provision is made retroactive from and after October 6, 1917. Section 5 relates to persons who may be confined in an asylum or hospital for the insane maintained by the United States, where no guardian or curator of their property has been duly appointed. The director after due investigation may order all moneys payable to him to be held in the Treasury of the United States to the credit of such person. It also provides that funds so held may be disbursed by the director at his discretion, to the chief executive officer of the asylum or hospital in which such person is an inmate, to be used by such officer for the maintenance and comfort of such inmate, and account to the Bureau of War Risk Insurance. Section 6 provides that any person to whom converted insurance shall be payable may assign his interest in such insurance to any other member in the permitted class of beneficiaries. Section 7 provides that section 29 of the war-risk insurance act (which declares that a discharge on certain grounds will forfeit the insurance carried by the soldier) shall not be applicable to converted insurance. It does not interfere with the application of that action to the present war-time term insurance. Section 8 adds a new section to the war-risk insurance act which is designated to dispose of the so-called "inducted" man problem. The section declares that a person is not in active service within the meaning of the war-risk insurance act until he has been examined at the camp or other place of mobilization and "accepted and enrolled for active service." The first proviso covers where men are injured in the line of duty, etc., after induction and prior to final acceptance, and the second proviso covers cases where an inducted man makes an application for insurance prior to being finally accepted. Sections 9 and 10 provide that family allotments and allowances shall be discontinued at the end of the fourth calendar month after the termination of the present war emergency, as declared by proclamation of the President of the United States, and thereafter all allotments of pay shall be voluntary and shall be made under such regulations as may be prescribed by the Secretary of War and the Secretary of the Navy, respectively. Section 11 relates to the compensation to be paid disabled persons and the members of their families. The rate of compensation has been increased, and in order that the Members of the House may fully understand the bill, the provisions of the present law are hereby inserted followed by the provisions of the proposed bill: PRESENT LAW. (1) If and while the disability is total, the monthly compensation shall be the following amounts: (a) If the disabled person has neither wife nor child living, $30; (b) If he has a wife but no child living, $45; (c) If he has a wife and one child living, $55; (d) If he has a wife and two children living, $65: (e) If he has a wife and three or more children living, $75; (f) If he has no wife but one child living, $40, with $10 for each additional child up to two; (g) If he has a mother or father, either or both dependent on him for support, then, in addition to the above amounts, $10 for each. PROPOSED BILL. (1) If and while the disability is rated as total and temporary, the monthly compensation shall be the following amounts: (a) If the disabled person has neither wife nor child living, $80; (b) If he has a wife but no child living, $90; (c) If he has a wife and one child living, $95; (d) If he has a wife and two or more children living, $100; (e) If he has no wife but one child living, $90, with $5 for each additional child up to two; (f) If he has a mother or father, either or both dependent on him for support, then, in addition to the above amounts, $10 for each parent so dependent. Disabilities shall be rated by the department as total and temporary, partial and temporary, total and permanent, and partial and permanent, and the monthly compensation shall be a percentage of the degree of reduction in earning capacity resulting from the disability, but no compensation shall be payable for a reduction in earning capacity rated as less than 10 per cent, except in case of total permanent disability, in which case the compensation shall be $100 per month. Ratings shall be based as far as practicable upon the average impairments of earning capacity resulting from such injuries in civil occupations, and not upon impairment in earning capacity, in each individual case, so that there shall be no reduction in the rate of compensation for individual success in overcoming the handicap of a permanent injury. The bureau shall from time to time readjust the schedule of ratings in accordance with actual experience. The director shall allow an additional $20 per month to a disabled person who is so helpless as to be constantly in need of a nurse or attendant. In connection with section 11 of this bill, for the information of the members of the House, a tentative schedule of ratings for partial permanent disability is herewith submitted. This tentative schedule was arrived at by the advisory board with surgeons in New York who went to the hospitals and prepared it after due investigation. The injured person shall also be furnished by the United States Government such reasonable governmental medical and hospital services and such supplies, including artificial limbs, trusses, and similar appliances as the Director may determine. The Bureau of War Risk Insurance shall also furnish governmental, medical, and hospital services and supplies and appliances to discharged members of the military and naval forces of the Governments which have been associated in war with the United States at such rates and under such regulations as the Bureau of War Risk Insurance may prescribe. The Director of the Bureau of War Risk Insurance is authorized to reimburse said Governments or their agencies for services, supplies, and appliances furnished to members of the military and naval forces of the United States who live within the territorial limits of such Governments. This provision is for the purpose of establishing reciprocal relations between the Governments which have been associated in war with the United States since April 6, 1917, relative to furnishing medical and hospital services, and supplies and appliances to discharged soldiers who may be living within the respective territories of the Governments associated with us in the war. The Director of the Bureau of War Risk Insurance is authorized to prescribe necessary regulations to carry out this provision of the proposed bill. Section 302 of this act as amended shall be deemed to be in force and effect as of October 6, 1917. (The schedule referred to follows:) DEAR SIR: In accordance with instructions from Assistant Secretary Love we now submit the following additions to the schedule of ratings for partial permanent disability: For example, if the remaining hearing in one ear were 50 per cent and in the other ear 75 per cent, i. e., 25 per cent impairment, the rating would be 16 per cent. Mental deterioration. Per cent. ... 10-80 Hernia, ventral, where hernia can not be kept in place effectively by an orthopedic appliance.... Where hernia can be kept in place by an orthopedic appliance. 4. Epilepsy: Fits occurring daily.. Fits occurring periodically at intervals of from 2 to 4 days. Ratings for permanent injuries to vision. REMAINING VISION-OTHER EYE. The foregoing ratings measure the disability after the best possible adjustment of lenses has been applied to the eyes. The international system of noting visual values has been used in the foregoing table. The numerator indicates the distance in feet of the object from the eyes of the observer, and the denominator the distance (also in feet) at which the object should have been seen. For example, means that the individual is seated 20 feet from the object, but sees only that sized object which should be seen at 200 feet. We are assured by authorities in opthalmics that these fractions serve all practical purposes, and that it would be inadvisable to adopt any other than the accepted standard for estimating visual power. |