"I am advised by the Administrator of Veterans' Affairs that as a result of studies made pursuant to understanding with certain committees of the Congress suggestions as to possible amendatory legislation to remove recognized defects will be submitted for consideration of the Congress at an early date."

The enclosed draft incorporates the proposed legislation resulting from the studies made by the Veterans' Administration pursuant to understanding with certain committees of the Congress, referred to by the President in the last paragraph of his said memorandum. There is also enclosed a draft to show changes in existing law which would result from enactment of the enclosed proposal. The Bureau of the Budget has advised that there would be no objection to the submission of this proposed legislation to the Congress for consideration. Identical letter sent to the President of the Senate.

The purpose of this proposed legislation is to liberalize the misconduct bar now provided by existing law. The subject has been under study by the Veterans' Administration for a considerable length of time, taking into consideration the legislative history of the provisions of the World War Veterans' Act, 1924, as amended, repealed by Public, No. 2, Seventy-third Congress, March 20, 1933, and restored with limitations and modifications by subsequent legislation as well as the provisions of paragraphs VIII and IX of Veterans Regulation No. 10, as amended, which define "line of duty" and "misconduct." With particular reference to service-connected disabilities, any material liberalization of the definition of "misconduct" as contained in paragraph IX of Veterans Regulation No. 10, as amended, would require changes in the definition of "line of duty" as contained in paragraph VIII of the same regulation, as amended. For that reason, as to service-connected cases under parts I and II of Veterans Regulation No. 1 (a), as amended, it is the opinion of the Veterans' Administration that both "line of duty" and "misconduct" as used in parts I and II of Veterans Regulation No. 1 (a), as amended, may be defined more adequately by incorporating both definitions in the same paragraph, i. e., paragraph VIII of Veterans Regulation No. 10, as amended. The proposed amendment to paragraph VIII would provide that any injury or disease incurred during military or naval service will be deemed to have been incurred in line of duty and not the result of the veteran's own misconduct when the person on whose account benefits are claimed was, at the time injury was suffered or disease contracted, in active service in the military or naval forces, whether on active duty or authorized leave, unless such injury or disease was the result of his own willful misconduct.

The first proviso of section 1 of the bill would remove the presumption of willful misconduct heretofore applied in cases of venereal diseases under precedent decisions of the Comptroller General under the World War Veterans' Act, 1924, as amended. As to such diseases, however, the other requirements specified in the proposed amendment of paragraph VIII would have to be met before service connection could be established.

It is not believed that venereal disease should be presumed to be due to misconduct if the person in service complies with the Army or Navy regulations requiring him to report and receive treatment for such disease. This would be consistent with the recommendations of the War and Navy Departments regarding removal of forfeiture of pay in order to insure necessary and effective medical treatment and cure. It would remove the presumption as to such cases. Further, it is not believed that monetary benefits should be paid where it appears that at the time the injury was suffered or disease contracted the person on whose account benefits are claimed (1) was avoiding duty by deserting the service, or by absenting himself without leave materially interfering with the performance of military duties, or (2) was confined under sentence of court martial or civil

court.

The effect of the proposed paragraph would be to establish a bar more comparable to that incorporated in the World War Veterans' Act, 1924, as amended, as restored with limitations and modifications by Public No. 141, Seventy-third Congress, March 28, 1934, Public, No. 196, Seventy-sixth Congress, July 19, 1939, and sections 7 and 8 of Public, No. 866, Seventy-sixth Congress, October 17, 1940. As to World War I cases under the World War Veterans' Act, 1924, as amended, and as restored with limitations and modifications, compensation cannot be paid if the injury, disease, aggravation, or recurrence was caused by the veteran's own willful misconduct. However, the World War Veterans' Act provided that no person suffering from paralysis, paresis, or blindness shall be denied compensation by reason of willful misconduct, nor shall any person who is helpless or bedridden as a result of any disability be denied compensation by reason of willful misconduct. In restoring these provisions of the World War Veterans' Act, 1924, as amended, Public, No. 196, Seventy-sixth Congress, provided that except as

to section 26 of Public No. 141, the limitations, except as to misconduct or willful misconduct contained in sections 27 and 28 of Public, No. 141, as amended by section 5 of Public, No. 304, Seventy-fifth Congress, would be for application. Public, No. 196, limited the restoration to those on the rolls March 19, 1933. Section 7 of Public, No. 866, however, removed the requirement that the veteran must have been on the rolls March 19, 1933, and also provided for death compensation benefits under Public, No. 484, as amended, for the additional groups included within that section, Public, No. 484, death benefits having been previously provided for the group included under Public, No. 196, supra.

The original War Risk Insurance Act, as amended, included a line-of-duty requirement which was removed in the enactment of the World War Veterans' Act of June 7, 1924, and the willful-misconduct bar was incorporated in section 200 of that act. Based upon experience in the Veterans' Administration with the provisions of paragraphs VIII and IX, Veterans Regulation No. 10, as amended, and willful misconduct limitations, with exceptions, pertaining to World War I cases heretofore explained it is believed that the proposed paragraph VIII will simplify administration and will permit payment of monetary benefits in a number of cases where it is believed injustices result from the denial thereof. ticularly, it is believed that the proposed paragraph will generally meet the desires and purposes of the committees of Congress which have had this limitation under consideration on repeated occasions, and more particularly during the present Congress.

Par

While the death benefits in World War I misconduct cases are those provided under Public, No. 484, Seventy-third Congress, as amended, as to those cases which can meet the requirements of the proposed paragraph VIII, the death compensation or pension rates provided under parts I or II of Veterans Regulation No. 1 (a), as amended, would be for application where the death is due to service-connected disability.

The foregoing comment with reference to paragraph VIII pertains to the service connected cases. The proposed paragraph VIII pertains to service connected cases both as to the line of duty and misconduct limitations and adequately sets forth the definitions of those terms for such cases.

The second section of the bill would amend paragraph IX of Veterans' Regulation No. 10, as amended, to prohibit payment of pension under part III of Veterans Regulation No. 1 (a), as amended, for any disability due to the claimant's own willful misconduct or vicious habits. This would have the effect of providing a limitation in service pension cases similar to that which obtained under the service pension acts pertaining to the Civil War and the Spanish-American War, including the Boxer Rebellion and Philippine Insurrection, before such limitations were removed from their laws, and would furnish a more satisfactory provision than that now provided under paragraph IX so as to permit the payment of service pension in certain meritorious cases, particularly in the light of the amendment to paragraph VIII for service connected cases, where such action cannot be taken under the existing definition.

Section 3 of the bill provides that the act shall be effective from the date of its approval and applicable to claims filed or adjudicated thereafter. The beginning dates of awards would be as provided in the applicable statute or regulations. It is further provided that no claim heretofore disallowed by reason of misconduct or line-of-duty requirement shall be revived, but benefits may be payable on the basis of a new claim filed after the date of enactment of the act in such form as may be prescribed by the Administrator of Veterans' Affairs.

For the foregoing reasons, it is the recommendation of the Veterans' Adminis tration that the proposed legislation receive early and favorable consideration by the Congress.

Very truly yours,

FRANK T. HINES, Administrator.

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78TH CONGRESS 2d Session

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HOUSE OF REPRESENTATIVES

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REPORT No. 1264

FIXING THE COMPENSATION OF REGISTERS OF THE DISTRICT LAND OFFICES IN ACCORDANCE WITH THE CLASSIFICATION ACT OF 1923, AS AMENDED

MARCH 20, 1944.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. PETERSON of Florida, from the Committee on the Public Lands, submitted the following

REPORT

[To accompany S. 866]

The Committee on the Public Lands, to whom was referred the bill (S. 866) to fix the compensation of registers of the district land offices in accordance with the Classification Act of 1923, as amended, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

EXPLANATION OF THE BILL

The registers of the district land offices now receive as compensation a basic salary of $2,000 per annum, and in addition, fees and commissions sufficient to make the total compensation not more than $3,600 per annum, exclusive of overtime compensation. The fee basis of compensation is uncertain.

Congress has abolished the fee system, with very few exceptions, as a means of compensating employees because that system ordinarily does not constitute a proper basis for compensation. In order to secure and retain registers qualified by training and experience to perform satisfactory services, it is necessary that a fixed and adequate amount of compensation be paid.

The bill would make the positions of registers subject to the Classification Act of 1923, as amended, but provides that in no case shall the salary be reduced below that received by a register for the preceding fiscal year. The salaries paid would constitute the entire compensation of these officers and would be in lieu of their present remuneration based upon salary, fees, and commissions.

The bill would repeal the provisions of law which relate to the compensation of the registers but would not repeal section 2234 of

the Revised Statutes (U. S. C., title 43, sec. 72), which provides for the appointment of the registers by the President by and with the advice and consent of the Senate. Thus the bill would not cover these positions into the classified civil service.

The act of March 9, 1942 (Public, No. 735, 77th Cong., 2d sess.), authorized the reorganization of the system of land offices and land districts in Alaska. Therefore, the Territory of Alaska has been excluded from the application of the proposed bill.

The bill has the approval of the Secretary of Interior, he having stated to the committee that in order to obtain and retain registers qualified by training and experience to perform satisfactory services, it is necessary that a fixed amount of annual salary be paid. The Bureau of the Budget also advised that there is no objection to the proposed legislation. The bill has passed the Senate and the House committee held hearings thereon and went into the facts rather thoroughly and the bill was unanimously ordered reported favorably by the committee. It is felt that the fee system should be abolished and the fairest method is to have the salaries fixed under the classification act. As stated before in this report, the bill does not put the employees under civil service and the committee recommends the passage of the bill.

Pursuant to the provisions of clause 2a, rule XIII, the statutes which would be repealed by S. 866 are set forth below:

SEC. 2237 OF THE REVISED STATUTES

SEC. 2237. Every register and receiver shall be allowed an annual salary of five hundred dollars.

SEC. 2240 OF THE REVISED STATUTES

SEC. 2240. The compensation of registers and receivers, including salary, fees, and commissions, shall in no case exceed in the aggregate three thousand dollars a year, each; and no register or receiver shall receive for any one quarter or fractional quarter more than a pro-rata allowance of such maximum.

ACT OF MAY 21, 1928 (45 STAT., 684), AS AMENDED BY THE ACT OF AUGUST 22, 1935 (49 STAT. 680)

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That from and after the 1st day of the month following the approval of this Act the compensation of registers of district land offices shall be a salary of $2,000 per annum each, and all fees and commissions now allowed by law to such registers, but the salary, fees, and commissions of such registers shall not exceed $3,600 each per annum: Provided, That the salary of the register of the Juneau land district, Alaska, shall be $3,600 per annum.

78TH CONGRESS HOUSE OF REPRESENTATIVES 2d Session

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REPORT No. 1265

RELIEF FOR STARVING PEOPLES OF EUROPE

MARCH 20, 1944.--Referred to the House Calendar and ordered to be printed

Mr. BLOOM, from the Committee on Foreign Affairs, submitted the following

REPORT

[To accompany H. Res. 221]

The Committee on Foreign Affairs, to whom was referred the resolution (H. Res. 221) favoring action looking to relief for starving peoples of Europe, having considered the same, report favorably thereon without amendment and recommend that the resolution do pass.

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H. Repts., 78-2, vol. 2- -33