"SEC. 501. (b) Any application for the guaranty of a loan under this section for the purpose of making repairs, alterations, or improvements in, or paying delinquent indebtedness, taxes, or special assessments on, residential property owned by the veteran and used by him as his home, may be approved by a Federal agency if it finds that the proceeds of such loan will be used for such purpose or purposes.

"(c) No first mortgage shall be ineligible for insurance under the National Housing Act, as amended, by reason of any loan guaranteed under this title, or by reason of any secondary lien upon the property involved securing such loan.

"PURCHASE OF FARMS AND FARM EQUIPMENT

"SEC. 502. Any application made under this title for a loan or the guaranty of a loan to be used in purchasing any land, buildings, livestock, equipment, machinery, or implements, or in repairing, altering, or improving any buildings or equipment, to be used in farming operations conducted by the applicant may be approved by a Federal agency if it finds

"(1) that the proceeds of such loan will be used in payment for real or personal property purchased or to be purchased by the veteran, or for repairing, altering, or improving any buildings or equipment, to be used in bonafide farming operations conducted by him:

"(2) that such property will be useful in and reasonably necessary for efficiently conducting such operations;

"(3) that the ability and experience of the veteran and the nature of the proposed farming operations to be conducted by him, are such that there is a reasonable likelihood that such operations will be successful; and

"(4) that the purchase price paid or to be paid by the veteran for such property does not exceed the reasonable normal value thereof as determined by proper appraisal.

"PURCHASE OF BUSINESS PROPERTY

"SEC. 503. Any application made under this title for the guaranty of a loan to be used in purchasing any business, land, buildings, supplies, equipment, machinery, or tools, to be used by the applicant in pursuing a gainful occupation (other than farming) may be approved by a Federal agency if it finds—

"(1) that the proceeds of such loan will be used for payment for real or personal property purchased or to be purchased by the veteran and used by him in the bona fide pursuit of such gainful occupation;

"(2) that such property will be useful in and reasonably necessary for the efficient and successful pursuit of such occupation ;

"(3) that the ability and experience of the veteran, and the conditions under which he proposes to pursue such occupations, are such that there is a reasonable likelihood that he will be successful in the pursuit of such occupation; and

"(4) that the purchase price paid or to be paid by the veteran for such property does not exceed the reasonable normal value thereof as determined by proper appraisal.

"SEC. 504. Any person who is found by the Administrator of Veterans' Affairs to be a veteran eligible for the benefits of this title, as provided in section 500 hereof, and who is found by the Secretary of Agriculture, by reason of his ability and experience, including training as a vocational trainee, to be likely to carry out successfully undertakings required of him under a loan which may be made under the Bankhead-Jones Farm Tenant Act, shall be eligible for the benefits of such Act to the same extent as if he were a farm tenant."

[S. 291, 79th Cong., 1st sess.]

A BILL To amend the Servicemen's Readjustment Act of 1944

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 700 (a) of the Servicemen's Readjustment Act of 1944 is amended by striking out the word "weeks" which occurs after the word "fifty-two" and inserting in lieu thereof the following: "times his allowance for a week of total unemployment,".

SEC. 2. Section 800 (c) (2) of such Act is hereby repealed.

SEC. 3. Section 800 (d) (1) of such Act is amended to read as follows: "(d). (1) In determining under subsection (a) of this section the suitability of work or the existence of good cause with respect to a claimant, there shall be considered, among other factors, the degree of risk involved to his health, safety, and morals, his physical fitness and prior training, his experience and prior or probable earnings in his customary occupation or one for which he has been trained, the length of his unemployment, his prospects for obtaining work in the customary occupation or one for which he has been trained, the distance of available work from his residence, and prospects for obtaining local work." SEC. 4. Section 900 of such Act is amended to read as follows:

"SEC. 900. (a) The allowance for a week shall be

"(1) $20, plus— ·

"(2) (A) $5 if the claimant has one dependent, or

"(B) $10 if he has two dependents, or

"(C) $15 if he has three or more dependents,

less that part of the wages payable to him for such week which is in excess of $3: Provided, That where the allowance is not a multiple of $1, it shall be computed to the next highest multiple of $1; and

"(b) (1) As used in this section the term 'dependent' includes only

"(A) the lawful wife of a claimant living with him or receiving regular support from him, or the lawful husband of a claimant if dependent upon his wife for support, who, in the week for which an allowance is claimed, has not received $5 or more either as wages, as an allowance under this title, or under any Federal or State unemployment or disability compensation law; or

"(B) an unmarried child either (1) under eighteen years of age, or (2) of any age, if incapable of self-support by reason of mental or physical defect. "(2) As used in this section the term 'child' shall include only

"(A) a legitimate child;

"(B) a child legally adopted;

"(C) a stepchild, if a member of the claimant's household; or

"(D) a child to whom the claimant stands in loco parentis and has so stood for not less than twelve months prior to the date of this claim on behalf of such child.

"(c) The Administrator may find an individual to be a dependent of the claimant if the claimant has certified the facts required by the provisions of this subsection.

"(d) Where a child is a dependent of more than one claimant, allowance for the child shall be made only on behalf of one claimant, as determined by the Administrator.

"(e) Where a claimant seeks an allowance for a dependent who is separated from him under court order or written agreement, the allowance for the dependent shall not exceed the amount fixed in the court order or in the written agreement. If such amount is not fixed at a weekly rate, the portion payable for each week shall be determined in accordance with regulations of the Administrator."

SEC. 5. This Act shall become effective the first Sunday of the calendar month after the date of enactment of this Act.

[S. 1176, 79th Cong., 1st sess.]

A BILL To amend the Servicemen's Readjustment Act of 1944, with respect to the education and training of veterans

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That paragraphs 1 and 2 of part VIII of Veterans Regulation Numbered 1 (a) (added by the Servicemen's Readjustment Act of 1944) are amended to read as follows:

"1. Any person who served in the active military or naval service on or after September 16, 1940, and prior to the termination of the present war, and who who shall have been discharged or released therefrom under conditions other than dishonorable, and who either shall have served ninety days or more, exclusive of any period he was assigned for a course of education or training under the Army specialized training program or the Navy college training program, which course was a continuation of his civilian course and was pursued

to completion, or as a cadet or midshipman at one of the service academies, or shall have been discharged or released from active service by reason of an actual service-incurred injury or disability, shall be eligible for and entitled to receive education or training under this part.

"2. Any such eligible person shall be entitled to education or training, or a refresher or retraining course, at an approved educational or training institution, for a period of one year (or the equivalent thereof in continuous part-time study), or for such lesser time as may be required for the course of instruction chosen by him. Upon satisfactory competition of such course of education or training, according to the regularly prescribed standards and practices of the institutions, such person shall be entitled to an additional period or periods of education or training, not to exceed the time such person was in the active service on or after September 16, 1940, and before the termination of the war, exclusive of any period he was assigned for a course of education or training under the Army specialized training program or the Navy college training program, which course was a continuation of his civilian course and was pursued to competition, or as a cadet or midshipman at one of the service academies: Provided, That wherever the additional period of instruction ends during a quarter or semester and after a major part of such quarter or semester has expired, such period of instruction shall be extended to the termination of such unexpired quarter or semester. Any eligible person who has pursued a preprofessional or professional course during the periods of education or training to which he is entitled under the foregoing provisions of this paragraph and has satisfactorily completed his work during such periods in such course, shall be entitled to such further additional period or periods of education or training as may be necessary to enable him to complete his preprofessional and professional courses, but in no event shall the total period of education or training to which any person is entitled under this part exceed seven years. No person shall be entitled to continue his education under this part during any of the additional periods above provided, except so long as his work continues to be satisfactory, according to the regularly prescribed standards and practices of the institution."

SEC. 2. The first sentence of paragraph 6 of such part VIII is amended to read as follows: "During the period any person is enrolled in and pursuing a course under this part (including regular holidays and leave not exceeding thirty days in a calendar year), such person shall be paid a subsistence allowance for each month in the following amounts: $50 if such person has no dependents; $75 if such person has one dependent; $100 if such person has two dependents; $125 if such person has three dependents; and $150 if such person has four or more dependents."

SEC. 3. Paragraph 10 of such part VIII is amended to read as follows: "10. The Administrator shall arrange for educational and vocational guidance to persons eligible for education and training under this part. From time to time the Administrator shall secure from the appropriate agency of each State a list of the agencies, organizations, and institutions within such State which are qualified to furnish such educational and vocational guidance; and the Administrator shall utilize the services and facilities of such agencies, organizations, and institutions to the fullest extent practicable in carrying out the provisions of this paragraph. At semiannual intervals the Administrator shall publish information respecting the need for general education and for trained personnel in the various crafts, trades, and professions, and shall distribute such information to interested persons and organizations. The organizations to which such information shall be distributed, shall include all approved educational and training institutions, all officially recognized State and local information centers and other agencies providing information or guidance for veterans, all local chapters of nationally recognized veterans' organizations, and such other organizations as the Administrator deems appropriate. The facilities of other Federal agencies collecting such information shall be utilized to the extent that the Administrator deems practicable."

SEC. 4. Section 1505 of the Servicemen's Readjustment Act of 1944 is amended by inserting after the words "under this Act" the following "(except title II)". Senator JOHNSON. We are honored this morning with General Bradley's presence. We would like to call on him as our first witness. You may proceed in your own way, General Bradley.

77877-45-3

STATEMENT OF GEN. OMAR N. BRADLEY, ADMINISTRATOR OF VETERANS' AFFAIRS, ACCOMPANIED BY E. E. ODOM, SOLICITOR, VETERANS' ADMINISTRATION; AND H. V. STIRLING, ASSISTANT ADMINISTRATOR FOR VOCATIONAL REHABILITATION AND EDUCATION, VETERANS' ADMINISTRATION

General BRADLEY. Mr. Chairman, I would like first to read my statement and then try to answer any questions you may have afterward. There are pending before this committee several bills amendatory to the Servicemen's Readjustment Act of 1944.

Among those originated and recommended by the Veterans' Administration is S. 974, a bill to amend parts VII and VIII of Veterans Regulation No. 1 (a), as amended, to liberalize and clarify vocational rehabilitation and education and training laws administered by the Veterans' Administration, and for other purposes.

H. R. 3749, which was passed by the House of Representatives immediately prior to the summer recess, would reenact all of the provisions of the Readjustment Act, with amendments to some. Reports on these two bills were prepared in due course by my predecessor, Gen. Frank T. Hines, and have been cleared by the Bureau of the Budget, with the admonition, however, that there be submitted to the appropriate congressional committees the correspondence had by me with the Bureau of the Budget in connection with such proposed reports. The reports themselves and the correspondence are here and may either be placed in the record or read to the committee, or both. They are quite detailed and extensive, and I feel that it may be more advantageous to the committee if I make a general statement on the principles involved and then, if desired by the committee, have the correspondence and the reports explained by one or more of my staff assistants.

The Solicitor, of course, and the legislative counsel will be available to the committee for any information or assistance that may be desired; and the Assistant Administrators concerned will be available to testify as to any matters under their jurisdiction.

While there is also pending before this committee other legislation in which the Administration is vitally interested, such as S. 1203, a bill to liberalize and clarify the laws pertaining to hospital treatment, medical care, domiciliary care, and related services, and for other purposes, and S. 969, a bill to amend certain provisions of the National Service Life Insurance Act of 1940, as amended-which latter bill may need further amendments in order to adjust such insurance to peacetime requirements-comment at the present time will be directed to the two main features of the pending bills, particularly education and training and guaranty of loans.

Preliminarily, I think some question arises as to the desirability of reenacting all of the Servicemen's Readjustment Act inasmuch as that may invite amendments upon which no expression of policy is possible and also may raise serious questions of interpretation, particularly as regards time limitations. Further, the House bill in reenacting section 100, ignored the fact that said section has been reenacted in an amended form as Public Law 138, Seventy-ninth Congress. It would be a step backward to repeal the provisions of the later act.

The suggestions with respect to education and training involve the following subjects:

1. Amount of training pay.

2. Elimination of the alleged discrimination between service persons based upon age at time of entrance into active service.

3. Provisions for short, intensive courses, and for the use of correspondence courses under adequate safeguards, both as to the veteran and the Government.

4. Revised formula for extending assistance to institutions having inadequate fees.

Considering the present living costs, it seems that some reconsideration should be given to the question of training pay or subsistence allowance while pursuing vocational rehabilitation or education or training. The Veterans' Administration recommended a change in the rates of increased pension for the former, and the House bill raises the latter $10 per month. The Bureau of the Budget suggested that instead of that, consideration be given to a flat rate for veterans without dependents, with increased amount for veterans with dependents, and that the amounts be the same under both acts but with provisions that the veteran may, notwithstanding such allowances, continue to receive whatever pension, retirement pay, or compensation he may otherwise be entitled to receive. Adoption of such flat rate would solve many administrative difficulties now inherent in the provisions of the two acts, and would go far to prevent attempts to switch back and forth as between vocational rehabilitation training under Public Law 16, and education or training under Public Law 346.

The age factor has caused much criticism, possibly through lack of understanding of the exact intent and purpose thereof. The education provisions of the Readjustment Act were intended as a benefit to those whose education or training was prevented or interrupted by active service. A proviso was added to the effect that anyone under 25 years of age at the time of entrance into active service would be presumed or deemed to have had his education or training interrupted. This was merely a rule of evidence in favor of the younger veterans. However, the older veterans feel that it places an undue burden of proof upon them to show eligibility for education or training other than a refresher or retraining course limited to 1 year.

While it is believed that there will not be a great number of older veterans desiring to take advantage of these educational opportunities, it is realized that the mere existence of purpose or intent is difficult of proof.

The Veterans' Administration has been very liberal in applying this provision but it has nevertheless created a great deal of dissatisfaction and charges of discrimination. It is believed the Congress may well desire to reexamine this subject and possibly also the question of more adequately defining the extent of courses of education or training.

Experience would indicate need for some leeway in paying for short, intensive courses. Under the formula prescribed in the act, it is necessary to prorate the maximum amount of $500 over the period constituting an ordinary school year. It is believed that veterans who desire only such short courses should be permitted to have them with all expenses paid within the limitation of the $500 maximum.