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SENATE

72D CONGRESS 1st Session

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REPORT No. 361

TO AMEND SECTION 19 OF THE WORLD WAR VETERANS' ACT, 1924, AS AMENDED

MARCH 2, 1932.-Ordered to be printed

Mr. WALSH of Massachusetts, from the Committee on Finance, submitted the following

REPORT

[To accompany S. 1675]

The Committee on Finance, to whom was referred the bill (S. 1675) to amend section 19 of the World War veterans' act, having considered the same, report it back to the Senate and recommend that the bill do not pass.

The purpose of this bill is to extend the abatement of the statute of limitations as to the date of filing suit upon contracts of insurance.

STATEMENT OF FACTS

Acts of Congress have removed the statute of limitations and have allowed any suit accruing since the World War and prior to July 3, 1931, for insurance benefits, to be filed not later than July 3, 1931. The Veterans' Administration has given the opinion that all just suits or claims arising under insurance contracts for a permanent and total disability award of insurance benefits would have been filed within the period from the date of the occurrence of the disability and July 3, 1931, provided by the extensions granted heretofore.

The present law provides for the filing of a claim within six years from the date of the occurrence of the disability and the statute of limitations does not preclude the filing of such claims. It is believed the present law provides ample remedies to all claimants and that it should not be amended again to extend the statute of limitations so as to include claims that have matured more than six years from the date of occurrence.

The report of the Administrator of Veterans' Affairs is as follows: VETERANS ADMINISTRATION,

Hon. REED SMOOT,
Chairman Committee on Finance,

Washington, February 8, 1932.

United States Senate, Washington, D. C.

MY DEAR SENATOR: Receipt is acknowledged of your letter of December 29, 1931, with which you forwarded for report a copy of S. 1675, Seventy-second Congress, a bill to amend section 19 of the World War veterans' act.

This bill would provide that section 19 of the World War veterans' act, 1924, as amended, be further amended to extend the abatement of the statute of limitations as to the date of filing suit upon contracts of insurance.

Suits brought under section 19 allege maturity, as a rule, dating back from 12 to 14 years. It would seem that all just claims arising under the contracts for insurance for permanent and total insurance benefits would have been filed with the Veterans' Administration or Federal courts within the period intervening from the date of the occurrence of the disability and the present date. It would not appear that any undue hardship would result in the enforcement of the uniform period of six years with the present abatement of all pleas with reference to the statute on all claims filed with the administration prior to July 3, 1930. As you know, the statute of limitations was tolled in all cases from July 3, 1930, to July 3, 1931.

As a result of the amendment of July 3, 1930, to section 19 of the World War veterans' act, 1924, providing that "no suit on yearly renewable term insurance shall be allowed under this section unless the same shall have been brought within six years after the right accrued for which the claim is made or within one year after the date of approval of this amendatory act, whichever is the later date, and no suit on United States Government life (converted) insurance shall be allowed under this section unless the same shall have been brought within six years after the right accrued for which the claim is made," the number of pending suits filed against the Government has increased to approximately 7,300 and are increasing at the rate of 100 suits per week. Furthermore, approximately 56,000 claims for insurance benefits are pending before the insurance claims council.. It may be conservatively estimated that at least 50 per cent of these claims will eventually develop into suits against the Government.

It is believed that section 19 of the World War veterans' act, as amended, at present provides ample remedies to all claimants and should not be amended until it has been sufficiently demonstrated that a hardship results to a claimant or a group of claimants.

A copy of this letter is inclosed for your use.

Very truly yours,

FRANK T. HINES, Administrator.

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SENATE

72D CONGRESS 1st Session

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REPORT No. 362

EXTENDING BENEFITS OF SECTION 202 (10) OF THE WORLD WAR VETERANS' ACT

MARCH 2, 1932.-Ordered to be printed

Mr. WALSH of Massachusetts, from the Committee on Finance, submitted the following

REPORT

[To accompany S. J. Res. 65]

The Committee on Finance, to whom was referred the joint resolution (S. J. Res. 65) extending the benefits of section 202 (10) of the World War veterans' act, having considered the same, report it back to the Senate and recommend that the bill do not pass.

PURPOSE

The purpose of this bill is to provide the benefits of hospital treatment now authorized by section 202 (10) to all veterans honorably discharged from any term of service from any war, regardless of whether a subsequent term of service terminated dishonorably.

FACTS

Section 202 (10) of the World War veterans' act, 1924, as amended July 3, 1930, extends hospitalization benefits to veterans whose military service terminated under honorable conditions. This bill would provide hospital care under section 202 (10) to that class of veterans to whom the benefits of hospitalization have been denied by reason of the dishonorable discharge from a subsequent war time enlistment.

A veteran of the Spanish-American War honorably discharged who received a dishonorable discharge from a last enlistment in the World War period would be provided with hospital treatment under this bill.

Another provision would grant to any veteran hospitalization who is receiving a pension without regard to the manner in which his services terminated.

SR-72-1-VOL 1- 40

The letter of the Administrator of Veterans' Affairs is as follows. VETERANS ADMINISTRATION, Washington, February 8, 1932.

Hon. REED SMOOT,
Chairman Committee on Finance,

United States Senate, Washington, D. C.

MY DEAR SENATOR SMOOT: Reference is made to your letter of December 29, 1931, transmitting a copy of S. J. Res. 65, "Joint resolution extending the benefits of section 202 (10) of the World War veterans' act," requesting a report thereon. This joint resolution would provide the benefits of hospital treatment now authorized by section 202 (10) of the existing statute to all veterans honorably discharged from any term of service during any war, military occupation, or military expedition, regardless of whether a subsequent period of service was terminated dishonorably. It is apparent that the primary intention of this measure is to provide hospital care under section 202 (10) for that class of veterans to whom the benefits of this section of existing law have been denied by reason of dishonorable discharge from subsequent wartime enlistments; for example, a veteran of the Spanish-American War, honorably discharged, who has received a dishonorable discharge from his last enlistment within the World War period, is held to have no rights to hospitalization provided for by section 202 (10) of the act. The secondary provision of this bill would prevent the denial of hospital treatment under section 202 (10) to any veteran receiving a pension, without regard to the manner in which his services were terminated.

This administration can not recommend favorably concerning proposed legislation which has for its purpose further liberalization of basic entitlement to hospitalization under section 202 (10) of the World War veterans' act, as amended, particularly where provision is included in the bill to extend these benefits to veterans whose last period of war service has been dishonorable.

While the enactment of this bill would probably materially increase the number of veterans entitled to hospitalization, the War Department is unable to furnish any figures upon which to base an estimate of the cost of the proposed legislation. However, it is not believed the cost would be large, since section 202 (10) provides only for hospitalization where Government facilities are available. A copy of this letter is inclosed for your use.

Very truly yours,

FRANK T. HINES, Administrator.

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Mr. HAYDEN, from the Committee on Post Offices and Post Roads, submitted the following

REPORT

[To accompany H. R. 9642]

The Committee on Post Offices and Post Roads, to whom was. referred the bill (H. R. 9642) to authorize supplemental appropriations for emergency highway construction, with a view to increasing employment, having considered the same, report it back to the Senate with the following amendments, and, as amended, recommend that the bill do pass.

On page 2, line 17, after the word "supplemental" strike out the proviso down to and including line 21, and insert in lieu thereof the following:

Provided further, That all contracts involving the expenditure of such sums shall contain provisions establishing minimum rates of wages, to be predetermined by the State highway department, which contractors shall pay to skilled and unskilled labor, said minimum rates shall be stated in the invitation for bids and shall be included in proposals or bids for the work.

On page 2, at the end of the first section, insert the following:

And provided further, That in the expenditure of such sums, the limitations upon highway construction, reconstruction and bridges within municipalities contained in section 4 of the Federal highway act, approved May 21, 1928 (45 Stat. 683) and upon payments per mile which may be made from Federal funds, shall not apply.

On page 3, line 11, strike out the figures "$3,000,000" and insert in lieu thereof the figures "$5,000,000".

On page 3, line 15, strike out the figures "$1,500,000" and insert in lieu thereof the figures "$3,000,000".

On page 3, at the end of line 17, change the period to a comma and insert the following:

and national park and monument approach roads authorized by the act of January 31, 1931 (46 Stat. 103).

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