general effect is used. In 17 P. D. 68 (Oct. 17, 1906) the Assistant Secretary, stated, in part:

To obtain pension the applicant must establish certain conditions precedent to title; the fact of service in the war of the rebellion, the length of such service90 days—a discharge, honorable in its nature (because such a discharge generally implies the faithful character of the service or atonement for lapses), and a disability not due to vicious habits.

Previously, the Assistant Secretary had said:

If the pension be granted primarily on account of service (even if its operation be restricted to those who are disabled within its definition), it goes without saying that faithful service is intended.

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HELD: While a rule whereby time lost through intemperate use of drugs or alcoholic liquor, or through disease or injury the result of own misconduct, can be excluded, may legally be applied such action would result in the application of a rule not heretofore applied by the Veterans' Administration, or the Veterans' Bureau. It would likewise constitute as to service pension acts the declaration of a rule not heretofore specifically applied as to cases other than those predicated upon service in the Civil War. For these reasons no such rule should be issued.

HELD FURTHER: In the computation of service under any law, other than one based on Civil War service, there should be excluded periods of agricultural, industrial, or indefinite furlough (R. & P. R.-1059 (A)); time under arrest, in the absence of acquittal; time for which the soldier or sailor was determined to have forfeited pay by reason of absence without leave, and time spent in desertion or while undergoing sentence of court martial. Time lost through intemperate use of drugs or alcoholic liquor or through disease or injury the result of own misconduct, should not be excluded in such computation. (Opinion of the Solicitor, dated July 17, 1946, approved Sept. 16, 1946.)

ADMINISTRATOR'S DECISION, VETERANS' ADMINISTRATION, NO. 725 OCTOBER 19, 1946.

Subject: Eligibility of persons discharged to accept a commission or to change status, to benefits under Public Law 346, Seventy-eighth Congress, as amended.

QUESTION PRESENTED: Is a veteran who was discharged, as an enlisted man to accept a commission or from a reserve commission to accept a commission in the Regular Establishment, by virtue of such discharge or resignation, eligible to the benefits of Public Law 346, Seventy-eighth Congress, as amended?

COMMENT: Public Law 346, Seventy-eighth Congress, as amended, provides that as a prerequisite to entitlement to benefits under titles

II and III the person must have served in the active military or naval service on or after September 16, 1940, and prior to termination of the present war and have been discharged or released therefrom under conditions other than dishonorable. However, title III contains the following additional provision:

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SEC. 500. * (c) An honorable discharge shall be deemed a certificate of eligibility to apply for a guaranteed loan The World War Veterans' Act, as amended, which authorized benefits for World War I veterans also required a discharge from war service as a prerequisite to entitlement to benefits thereunder. Under the established precedents of the Veterans' Administration applicable to World War I veterans a discharge prior to the cessation of hostilities for the purpose of accepting a commission was not considered a termination of the war service but merely a change in status and therefore such a discharge was not accepted as a basis for determining eligibility to benefits predicated on such service. These precedents are based on the fact that prior to the cessation of hostilities no person qualified for service was discharged or released from active duty except under certain circumstances not here in point, and that a discharge for the purpose of accepting a commission was given merely to permit a change in status and did not relieve the person of his obligations to serve for the duration of the war and he did not acquire a civilian status during the interval between the discharge and the commission. After the signing of the Armistice and cessation of hostilities on November 11, 1918, persons in the active service became eligible for release from active duty and were permitted to acquire a civilian status. For that reason it was held that discharge subsequent to the Armistice, even though effected solely for the purpose of permitting the person to accept a commission, may be accepted as having terminated the first period of war service. During the present war the situation is somewhat analogous except that, whereas during World War I, all persons, except those who had enlisted for a specified period, were considered eligible for discharge immediately after the cessation of hostilities-during the present war discharges were given under a point or length of service system. In this connection it is deemed not improper to point out that under Army Regulations AR 615-360 and 615-365 there is authority to discharge an enlisted man to accept a commission or to accept an appointment as an officer provided that "prior to such discharge for the purpose stated, the discharge authority shall be in possession of documentary evidence from the proper authority that such enlisted man is acceptable and will be appointed as a commissioned officer and will be called to active duty immediately if discharged from the United States Army." It

will be noted that under the regulations above referred to the discharge is conditional and that the person being discharged does not acquire a civilian status or the right to return to civil life. He remains in the armed forces. In fact the service departments have no authority to release anyone qualified for service except for certain reasons not here in point such as for disability, discipline, etc.

Accordingly, insofar as the present problem is concerned the situation as to World War II veterans is similar to that which was considered under the precedents applicable to World War I veterans.

While as to World War I the cessation of hostilities was adopted as the date subsequent to which a discharge for any purpose whatsoever was regarded as a termination of war service, the same procedure cannot be adopted as to World War II for the reason that a different. criteria for discharges was adopted by the service departments. Further, section 1502 of Public Law 346, Seventy-eighth Congress, specifically defines the termination of hostilities for the purposes of that act, and that date has not as yet been set. It is believed, however, that the point system of discharges adopted by the War and Navy Departments under which a person in the active service became eligible to be separated from his obligation to perform military duty or to be released therefrom is legally comparable with the practice and procedure under which persons were discharged or released from active service in World War I subsequent to the cessation of hostilities (Nov. 11, 1918). The precedents as to discharges and releases during World War I have been enforced and consistently followed for over a quarter of a century. The Congress and all administrative departments and agencies of the Government are presumed to have full knowledge of these precedents in the absence of legislation providing otherwise. The only material change made with regard to discharge requirements as a prerequisite to eligibility are those contained in section 500 (c), Public Law 346, Seventy-eighth Congress, as amended by Public Law 268, Seventyninth Congress, which have heretofore been quoted. It is, therefore, believed that it can be safely said, in the light of the various amendments to the laws granting benefits to veterans over the past quarter of the century, that the said precedents have received legislative recognition. In fact, in the "Mustering-Out Payment Act of 1944”-originally a part of the bill which became the Servicemen's Readjustment Act of 1944-cognizance was taken of temporary and permanent separation from service.

In view of the foregoing the only correct rule to be adopted is to hold that, except as to benefits under title III, a discharge to accept a commission or change in status prior to the time the person was eligible for discharge under the point or length of service system is not to be

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considered a termination of his service but rather a continuation thereof in a different status and that therefore such discharge may not be accepted as a basis for determining eligibility to benefits under existing legislation. The rule as to discharges prior to the cessation of active hostilities during World War I and World War II under such a construction would be consistent.

With regard to benefits under title III (loans) the language of 500 (c), supra, is specific and materially different from that in the other sections of the law. This issue did not arise under the provisions as originally enacted for the language employed therein was similar to that in the other titles and therefore was subject to the same construction. However, in reenacting title III in Public Law 268, Seventyninth Congress, the Congress approached the matter of loans from an entirely different angle, placing in certain instances the determination as to the eligibility of the borrower in the hands of the lender. To effect this approach the amendment provided:

(c) An honorable discharge shall be deemed a certificate of eligibility to apply for a guaranteed loan. Any veteran who does not have a discharge certificate or who received a discharge other than honorable, may apply to the Administrator for a certificate of eligibility. Upon making a loan as provided herein, the lender shall forthwith transmit to the Administrator a statement setting forth the full name and serial number of the veteran, amount and terms of the loan, and the legal description of the property, together with the appraisal report made by the designated appraiser. Where the loan is automatically guaranteed, the Administrator shall provide the lender with a loan guaranty certificate or other evidence of the guaranty. He shall also endorse on the veteran's discharge, or eligibility certificate, the amount and type of guaranty used, and the amount, if any, remaining. An amount equivalent to 4 per centum on the amount originally guaranteed shall be paid to the lender by the Administrator out of available appropriations, to be credited upon the loan. Nothing herein shall be deemed to preclude the assignment of any guaranteed loan nor the assignment of the security therefor.

(d) Loans guaranteed hereunder may be made by any Federal land bank, national bank, State bank, private bank, building and loan association, insurance company, credit union, or mortgage and loan company, that is subject to examination and supervision by an agency of the United States or of any State or Territory, including the District of Columbia. Any loan at least 20 per centum of which is guaranteed under this title may be made by any national bank, or Federal savings and loan association; or by any bank, trust company, building and loan association or insurance company organized or authorized to do business in the District of Columbia: without regard to the limitations and restrictions of any other statute with respect to

(1) Ratio of amount of loan to the value of property;

(2) Maturity of loan;

(3) Requirement for mortgage or other security;

(4) Dignity of lien; or

(5) Percentage of assets which may be invested in real estate loans.

(e) Any loan proposed to be made to an eligible veteran by any lender not of a class specified in subsection (d) may be guaranteed by the Administrator if he finds that it is in accord otherwise with the provisions of this title, as amended. Whether by this change the Congress was fully aware of the fact that same would doubtlessly require a change in the administrative interpretation and rulings which had been in force for over a quarter of a century is a matter which cannot be definitely resolved. An exhaustive

search of the legislative history fails to throw any light on the subject. It is known, however, that the Congress intended to facilitate and make as simple as possible the procedure for applying for and the processing of loans. With this end in mind it adopted the language referred to. In the absence of specific information on the issue in the legislative history and with a knowledge of the objectives the Congress had in mind, the rules of statutory construction afford support but for one interpretation-namely that the language employed must be accepted and followed literally even though to do so would tend to produce results inconsistent with that in the other titles of the same act or amendments thereto. Under this language of the law a veteran who applies to a (d) lender and who presents an honorable discharge certificate, even though the discharge was issued for the purpose of accepting a commission or to change his status, is legally entitled to a guaranty of the loan if he meets the other requirements of the statute and the lender may not be denied the guaranty or insurance of the loan. Accordingly, as to benefits under title III the rule above referred to is not for application. As to these benefits, any veteran who was honorably discharged from World War II service after having served the requisite period of time is eligible thereto irrespective of whether the discharge was given for the purpose of accepting a commission at a time prior to that which the veteran would not have otherwise been discharged.

HELD: As to benfits under title II of Public Law 346, Seventyeighth Congress, as amended a discharge to accept a commission or a change in status prior to the time the person was eligible for discharge under the point or length of service system, is not to be considered a termination of his service and therefore the discharge may not be accepted as a basis for eligibility thereto. As to benefits under title III, an honorable discharge may be accepted as a basis for eligibility even though the discharge may have been given merely for the purpose of change in status. (Opinion of the Solicitor, July 29, 1946, approved Sept. 17, 1946.)

ADMINISTRATOR'S DECISION, VETERANS' ADMINISTRATION, NO. 726 OCTOBER 19, 1946.

Subject: Applicability of Public Law 439, Seventy-eighth Congress, where disease is initially manifested subsequent to separation from service.

QUESTION PRESENTED: May a venereal disease which becomes manifest by primary lesion discovered 10 days subsequent to discharge be considered as having been incurred in line of duty under Public Law 439, Seventy-eighth Congress?

FACTS: The veteran entered active service on April 14, 1943, and was