CONTENTS

Page

11

Statements of—

Corwin, Harold D., assistant legal counsel on legislation for the

Retired Officers Association --
Downer, Adin M., assistant legislative counsel for the Veterans of

Foreign Wars.----
Jackson, Stephen S., Office of Counsel, Office of Secretary of Defense,

accompanied by William H. Baier, attorney for Board for the
Correction of Naval Records, and C. M. Wiggin, executive secretary

of the Board for the Correction of Naval Records...
Johnson, Charles E., legislative attorney, General Accounting Office.
Rawlins, Edward White, Commander, United States Navy (retired) -
Stevens, Charles W., assistant director, national rehabilitation com-

mission, The American Legion.--
Tausig, John G--------

Eco BOON

-----

AUTHORIZING PAYMENT OF CLAIMS ARISING FROM
CORRECTION OF MILITARY AND NAVAL RECORDS

MONDAY, SEPTEMBER 17, 1951

UNITED STATES SENATE,
SUBCOMMITTEE OF THE COMMITTEE ON ARMED SERVICES,

Washington, D. C.
The subcommittee met, pursuant to notice, at 10 a. m., in Room 212,
Senate Office Building (Senator Lester C. Hunt, chairman, and Sen-
ator Flanders).

Present: Senators Hunt (presiding) and Flanders.

Also present: Senator Harry P. Cain and William H. Darden, com-
mittee clerk.

Senator HUNT. The committee will come to order.

This subcommittee was appointed by Chairman Russell to con-
sider H. R. 1181, to amend section 207 of the Legislative Reorganiza-
tion Act of 1946 so as to authorize the payment of claims arising from
the correction of military or naval records.

H. R. 1181 will be considered in lieu of S. 308, the companion bill
in the Senate. Section 207 of the Legislative Reorganization Act of
1946 authorized the correction of military and naval records by the
Secretaries of the Armed Services through boards of civilian officers
or employees of their respective departments, where such action was
necessary to correct errors or remove injustices.

The Comptroller General has held that this section does not au-
thorize the payment of any claim for money that is based on correc-
tions of military or naval records by the board set up for that purpose.

This bill would authorize the payment that would have been due if
the error or injustice had not existed originally.

Our first witness this morning is Mr. Steve S. Jackson, from the
Office of the Secretary of Defense.

May I ask whether this bill has passed the House?
Mr. DARDEN. Yes, sir.
Senator HUNT. Do you remember the vote?
Mr. DARDEN. It was on the calendar.
(H. R. 1181, is as follows:)

[H. R. 1181, 820 Cong., 1st sess.]
AN ACT To amend section 207 of the Legislative Reorganization Act of 1946 so as to
authorize payment of claims arising from the correction of military or naval records

Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled, That section 207 of the Act of August 2, 1946
(60 Stat. 812), is hereby amended to read as follows:

"SEC. 207. (a) The Secretaries of the Army, Navy, and Air Force and the
Secretary of the Treasury (with respect to the Coast Guard), respectively, under
procedures set up by them, and acting through boards of civilian officers or em-
ployees of their respective Departments, are authorized to correct any military
or naval record where in their judgment such action is necessary to correct an
error or remove an injustice, and corrections so made shall be final and con-
clusive on all officers of the Government except when procured by means of
fraud : Provided, That procedures set up by the Secretaries of the Army, Navy,
and Air Force in accordance with this subsection shall be approved by the Sec-
retary of Defense: Provided further, That no corrective action shall be taken
under this subsection unless the request therefor be filed by claimant, his heirs
at law, or legal representatives within three years after his or their discovery
of the alleged error or injustice, or within ten years after the date of enactment
of this Act, whichever be the later: Provided further, That the failure to file
the request by claimant, his heirs at law, or legal representative, within three
years after his or their discovery of the alleged error or injustice may be ex-
cused by such board of civilian officers or employees of the respective Depart-
ments upon finding by it that it is in the interest of justice to excuse such failure
to file within the prescribed time in which event action shall be taken in the
same manner as if the request had been filed within the three years as prescribed
herein.

“(b) The Department concerned is authorized to pay, out of applicable current
appropriations, claims of any persons, their heirs at law or legal representatives
as hereinafter provided, of amounts paid as fines, forfeitures, or for losses of
pay (including retired or retirement pay), allowances, compensation, emolu-
ments, or other monetary benefits, as the case may be, which are found to be due
on account of military or naval service as a result of the action heretofore taken
pursuant to section 207 of the Legislative Reorganization Act of 1946, or here-
after taken pursuant to subsection (a) of this section: Provided, That in the
case of deceased persons where no demand is presented by a duly appointed legal
representative of the estate, payments otherwise due hereunder shall be made
to the decedent's widow, widower, legal heirs, or beneficiaries, in the order of
precedence or succession as may be prescribed by the applicable provisions of
law relating to the kind of payment involved and when not otherwise so pro-
vided, in the order of precedence as set forth in the Act of February 25, 1946
(60 Stat. 30), or as may be prescribed by the applicable provisions of law relating
to the kind of payment involved.

"(c) The acceptance by the claimant of any settlement made pursuant to sub-
section (b) of this section shall constitute a complete release by the claimant
of any claim against the United States on account of such correction of record.

"(d) Applicable current appropriations shall be available for payment of such
sums as may be due for continuing the pay (including retired or retirement pay),
allowances, compensation, emoluments, and other monetary benefits to persons
who shall have received payment pursuant to the provisions of subsection (b)
of this section and who may be entitled to such continuing payments as a result
of the correction of their military or naval records: Provided, That continuing
payments are authorized to be made to such personnel for not more than one
year following the date of the correction or one year following the date of
enactment of this Act, whichever be the later, without the necessity of reenlist-
ment, appointment, or reappointment to the grade, rank, or office to which such
pay (including retired or retirement pay), allowances, compensation, emolu-
ments, and other monetary benefits are attached, and such reenlistments, appoint-
ments, and reappointments are hereby authorized by the Secretary concerned
without regard to other qualifications."

SEC. 2. This Act shall be effective from and after August 2, 1946.
Passed the House of Representatives July 2, 1951.
Attest:

RALPH R. ROBERTS, Clerk.
Senator HUNT. Mr. Jackson, you may proceed, please.

STATEMENT OF STEPHEN S. JACKSON, OFFICE OF COUNSEL, OFFICE
OF THE SECRETARY OF DEFENSE; ACCOMPANIED BY WILLIAM
H. BAIER, ATTORNEY FOR THE BOARD FOR THE CORRECTION
OF NAVAL RECORDS; AND C. M. WIGGIN, EXECUTIVE SECRETARY
OF THE BOARD FOR THE CORRECTION OF NAVAL RECORDS

Mr. JACKSON. My name is Stephen S. Jackson. I am of the Office
of Counsel, of the Office of the Secretary of Defense, Department of
Defense, which is recommending passage of this bill.

My statement is addressed to the House bill in view of the fact
that this was introduced in the House originally. There have been
several changes which I believe are not reflected in the Senate bill.

Senator HUNT. We are going to consider the House bill, Mr. Jack-
son, in lieu of the Senate bill.

Mr. JACKSON. The Department of Defense recommends that this
act to amend section 207 of the Legislative Reorganization Act of
1946 so as to authorize payment of claims arising from the correction
of military or naval records be enacted by the Senate. This proposal
has been approved by the Bureau of the Budget and passed the House
of Representatives July 2, 1951.

In August 1946, Congress gave to the Secretaries of the armed
services and the Secretary of the Treasury—with respect to the Coast
Guard-authority for the correction of military and naval records
where such action is necessary to correct error or remove injustices.
Some of these errors or injustices result in the deprivation of monetary
benefits to the applicant. While the record can be corrected, the
loss of monetary benefits cannot be corrected. A decision of the
Comptroller General of the United States dated May 20, 1948, 270G709,
held that,

Neither section 207 nor other legislation vests in the head of the specified
department or in this office any authority to order or direct the allowance or
payment of any claim for money, or to use appropriated funds to pay any claim
for money, based on corrections made on military or naval records of an
individual under the authority of that section.

H. R. 1181 would realistically implement the action taken in 1946
by amending section 207 so as to authorize the Department concerned
to pay claims found to be due as a result of action taken pursuant to
section 207 of the Legislative Reorganization Act of 1946.

H. R. 1181 authorizes payment of benefits which have been found
to be due in the past but which could not be paid because of the
Comptroller General's opinion, as well as such claims in the future.

When the original bill which the Department of Defense recom-
mended was considered before the Committee on Armed Services of the
House of Representatives, three specific objections were interposed by
the General Accounting Office. First, the lack of any time limitation
in the bill. The Department of Defense was opposed to any time
limitation but withdrew its opposition if the proviso set forth in the
present act-page 2, lines 13 to 21—were adopted, whereby the boards
would have authority to excuse compliance with the limitation in
cases where an injustice would result to a member of the armed serv-
ices who, for instance, because of injury in combat, capture, par-
ticipation in combat or other exigencies or military service might
render it impracticable for him to file his claim within the prescribed
period.

Second, the General Accounting Office objected to the original lan-
guage making settlements final and conclusive. The Department of
Defense yielded and accepted the language submitted by the General
Accounting Office on this point.

Third, the General Accounting Office objected to the language set
forth in section 1 (d) of the original bill which provided that pay-
ments could be made without the necessity of reenlistment or appoint-
ment of the persons concerned, to the grade, rank, or office to which
such pay or benefits are attached. The Department of Defense was