Mr. DODSON. Yes; it would except in the Women's Bureau their volume of mail is not so great and it would not assume the proportions of time for record keeping that it would in the bureaus I have previously named. Check me, Miss Larrabee, if I am wrong in this, but I believe that it would not take more than 25 percent of one person's time for the record-keeping and the additional work that is necessary in view of the penalty mail. Miss LARRABEE. I think it does take a little more than that, Mr. Dodson. It is a terrible headache. Miss MILLER. That may seem ridiculous, but relative to the staff we have, that is pretty serious. PERSONNEL REQUEST FOR 1946 Mr. HARE. How many employees do you have in your bureau? Miss LARRABEE. At the moment we have 76. Mr. HARE. You are asking for two more? Miss LARRABEE. That figure includes employees working under the national defense appropriation. There is a reduction in the number of employees requested for 1946. Mr. DODSON. They are asking for a total of 70 employees for 1946. Miss. LARRABEE. Yes. We had 80 in the 1945 appropriation. Mr. TARVER. No other questions. Mr. HARE. Thank you very much, Miss Miller. WEDNESDAY, MARCH 21, 1945. UNITED STATES EMPLOYEES' COMPENSATION COMMISSION STATEMENTS OF MRS. JEWELL W. SWOFFORD, CHAIRMAN; ALBERT H. LADNER, JR., COMMISSIONER; WILLIAM MCCAULEY, SECRETARY, AND HAROLD J. WEDICK, ADMINISTRATIVE ASSISTANT Mr. HARE. We have for consideration this morning the United States Employees' Compensation Commission's budget estimate, and we are fortunate to have with us the Chairman, Mrs. Swofford. Do you have a statement you would like to make? GENERAL STATEMENT Mrs. SWOFFORD. Just a brief statement, Mr. Chairman. This year has been one of unusual interest but also one of unusual stress in the administration of the work of the Compensation Commission. The coverage extended to employees of contractors and civil employees engaged on projects for the Government in countries outside the United States has presented a variety of problems to be solved. The staff of the Commission is limited and in supplying personnel for responsible positions in foreign countries the most experienced persons on our staff were chosen. This placed an additional strain on employees in our main offices, many of whom are still rather inexperienced due to the large turn-over that occurred when the Commission was moved from Washington. In addition the large increases in reported cases under the enlarged activities of the regular governmental agencies has in itself created a volume of work of considerable proportion.. Most of the problems incident to work outside the United States have required study and quite different procedures from those in ordinary use, such as the differential in payment to native and nonnative employees in foreign countries, the matter of ratings comparable to prevailing compensation rates in the countries of employment in order not to upset local economy, also the adequate adjustment of rates in countries where the compensation payments would be offset under lend-lease by the respective countries whose nationals were employees on United States Government projects. In death cases where the statute of "widows" was involved, many religious and tribal customs and laws had to be considered. May I also mention that it has been a very distinct disadvantage to the Commission to have been moved from Washington. In spite of the pleasant quarters furnished the Commission in New York, the work has been performed under handicap. We have felt the loss of our more direct contacts with Congress on compensation matters and our ready access to various governmental agencies with which the Commission has important relations. While legislation affecting compensation benefits was pending, and after the passage of such legislation, many points arose for discussion with the Army and Navy and other agencies. It has been a definite disadvantage that the discussions relating to such matters have had to be transmitted to the Commissioners by reports from representatives of the Commission who happened to be available in Washington for such conferences. The Commissioners feel that it would be of great value to the work of the Commission if at least the executive offices of the Commission could be returned to Washington where access may be had to facilities and agencies essential for the proper determination of matters of policy. POLICY RESPECTING CLAIMS ARISING IN FOREIGN COUNTRIES Mr. HARE. I think it would be well, Mr. McCauley, if you would state for the record just what your policy is relating to compensation claims arising in foreign countries. Mr. MCCAULEY. The Commission has two classes of cases arising in foreign countries. One relates to claims of employees of contractors with the Government who have operations on various installations outside the States, and the other to claims of employees of the United States, sent from the States, or hired locally in the foreign countries. Special legislation was enacted to take care of contractors employees, namely Public Law 208, Seventy-seventh Congress. The act was approved August 16, 1941. Such law made the Longshoremen and Harbor Workers Act applicable to all employees of contractors at any military, air, or navy bases, outside the United States or any land used by the United States for military and naval purposes. Mr. HARE. There is no basic difference in the law as applied to persons in continental United States and those employed in foreign countries? Mr. MCCAULEY. The only statutory distinction in benefits is that the minimum rate of compensation in the basic law has been removed so far as it applies to noncitizens employed outside the United States. The net effect of the change is that compensation to noncitizens outside the United States is on the basis of the actual wage received at the time of injury which is often less than the minimum compensation payment in the States. For example, under the Federal Employees' Compensation Act the minimum compensation rate for a disability is $58.33 a month. An employee in the States whose wage happens to be less than $58.33, receives his full wage while disabled. That minimum has been removed so far as noncitizens outside the United States may be concerned. So that the most the noncitizen employees could receive would be two-thirds of the actual wages paid to him locally regardless of how small such wage may be. Mr. KEEFE. This is to bring it in line with the local wage situation? Mr. MCCAULEY. Yes, sir. Mr. KEEFE. So as not to upset their local economy? Mr. MCCAULEY. That is correct. And under the Longshoremen's and Harbor Workers' Act the minimum rate of $8 per week has been eliminated insofar as noncitizens are concerned. Mr. KEFE. Who administers the Longshoremen's Act? Mr. MCCAULEY. The Commission administers it, but the benefits are all paid by the employer or his insurance carrier. PAYMENTS FOR DEATH OR PERMANENT DISABILITY There is another feature of the Federal Employees' Act that creates an administrative problem, and that is the matter of payment of the cases involving permanent disability or death, where we propose to settle the claims by the payment of a lump sum. At the present, time we have to follow the statutory formula for computing lumpsum payments and oftentimes that produces a sum greatly in excess of any payment that the individual might expect to receive under local law or custom. The statute requires that a lump-sum payment be determined on the basis of the life expectancy of the individual, using the American Experience Table of Mortality for that purpose. Mr. KEEFE. You are now referring, I understand, to noncitizens? Mr. MCCAULEY. Yes, sir. In order to cope with this situation until congressional consideration of legislative changes the Commission has, by administrative practice, paid the equivalent under the local law where this was substantially less than the benefits provided in the statute. Mr. KEEFE. Mr. Chairman, if I may pursue that point for just a moment. Mr. HARE. Yes. Mr. KEEFE. So that the record may be clear in that respect: The Commission administers the act under which the civilians are employed by contractors, whether they are not natives of the United States or United States citizens, or whether they are foreign born, or aliens, you make the determination as to the amount which may be due under the various acts which you administer and the payments are made of course either by the employer or by his insurance carrier. Mr. MCCAULEY. That is true with respect to contract employees, yes. Mr. KEEFE. Then as to the direct employees of the United States Government, they are paid by the funds provided for that purpose? Mr. MCCAULEY. Yes, sir; they are paid from appropriations carried in this estimate, the employees' compensation fund. Mr. KEEFE. Then as to the question which you raised, and it is rather an intriguing one; I understood you to say that under existing law, in the case of death benefits you are required to compute the death benefits in accordance with the American Experience Table of Mortality as applied to an alien who is working in some outlying place, where if you had local laws applying, the local mortality experience table applying, the amount would be greatly deceased, and in those cases you are anticipating action on the part of the Congress which will permit you to make settlement of death benefits in accordance with the Experience Tables of the law or of the place where they are working, supposing they are native citizens. Mr. MCCAULEY. That is substantially correct. The statement you have made applies where the injured persons are directly employed by the Federal Government, because in other cases the Commission makes no payment. The payments are made by the contractor or his insurance carrier, and the statute provides for a reduction of 50 percent in the lump sum payment in the case of contractor's employees. Legislation has been introduced (H. R. 2381), and is pending before the Committee on the Judiciary of the House, which will, if enacted, authorize the Commission to make payments in foreign areas to noncitizens of the United States in keeping with local laws and customs, and ratify the settlements heretofore made. Mr. KEEFE. It seems to me, Mr. Chairman, that is a pretty salutary piece of legislation and its passage ought to be expedited. Mr. HARE. I was going to ask whether you had appeared before the Judiciary Committee. Mr. MCCAULEY. We have not as yet. Mr. HARE. Have you requested permission to appear? Mr. MCCAULEY. We have. Such legislation should be expedited, and we intend to consult with the committee while we are on this trip. Mr. HARE. Because it is likely a considerable number of claims would arise. Mr. MCCAULEY. There will be a very considerable number of those cases. STATEMENT BY ESTABLISHMENTS OF ACCIDENTAL INJURIES TO FEDERAL EMPLOYEES, 1941-43 Mr. HARE. I notice in your justification, Mr. McCauley, you have a table showing the number of claims arising out of injuries in the War and Navy Departments and under the Longshoremen's and Harbor Workers' Act. I was just wondering whether you have a table showing the claims arising from injuries from other sources. Mr. MCCAULEY. The cases arising out of injuries, to civilian employees of the United States in foreign areas, would be included in the table of cases reported to us under the Federal Employees' Act. The employees of the contractors are tabulated. Mr. HARE. What I wanted to get at was this: Do you have a table showing the number of claims arising out of injuries, received by employees of the War Department, of the Department of Agriculture, the Department of the Interior, and so on? Mr. MCCAULEY. Yes, sir; we can submit such a statement for the record. We can give you a complete break-down through 1943. Mr. HARE. You have a table to that effect? Mr. MCCAULEY. Yes, sir. (The table requested follows:) TABLE 7.-Comparison of accidental injuries to Federal employees, occurring in calendar years 1941-43, inclusive, by establishments 1 Data for 1943 are preliminary. and fatal cases. Estimated cost of benefits including evaluation of costs payable over future years in permanent disability 71926-45-pt. 1-24 |