permanently and totally disabled within the meaning of the present provision in the converted insurance policy, he is, under the amendment, to receive payments under the new total disability clause concurrently with the payments under the permanent and total disability clause now in the converted policy, payments under the latter only depleting the face value. This new disability feature is limited to a rate of $5.75 on each $1,000 of insurance carried and may be less than the total amount carried but not more. It is to be handled as a separate liability from the present provision for a permanent and total disability and will be so shown on the records, so that the present United States Government life insurance fund shall not be assessed for any losses to be paid under this provision. This insurance will be paid for by the insured and will not result in any increased cost to the Government except so far as the cost of administration is concerned.

O

Mr. WATSON, from the Committee on Finance, submitted the

following

REPORT

[To accompany H. R. 10630]

The Committee on Finance, to whom was referred the bill (H. R. 10630) to authorize the President to consolidate and coordinate governmental activities affecting war veterans, having considered the same, report it back to the Senate with an amendment and recommend that the bill do pass.

The establishment set up by the House bill is known as "Administration of veterans' affairs. This title is amended by the committee, the establishment created by the bill to be known as "Veterans' administration."

Following is the House report on the bill:

[House Report No. 951, Seventy-first Congress, second session]

The Committee on Expenditures in the Executive Departments, to whom was referred the bill (H. R. 10630) to authorize the President to consolidate and coordinate governmental activities affecting waz veterans, having considered the same, report thereon with the recommendation that it do pass with the following amendments:

Page 1, line 3, strike out the "(a)" and insert "(a)" before the word "That" at the beginning of the line.

Page 2, line 10, after the word "regulation" and before the comma, insert the words "not inconsistent with law".

Page 2, line 13, strike out the words "not inconsistent".

Page 2, line 14, strike out the words "with law".

Page 5, line 16, after the word "enforced" insert the words "by suit".

Page 5, line 21, strike out the word "that" and insert in lieu thereof the words "as if".

Page 5, line 21, strike out the word "may" and insert in lieu thereof the word "were".

Page 5, line 22, strike out the words "now be sued" and insert in lieu thereof the words "party defendant".

ANALYSIS OF BILL

Section 1: Subdivision (a) provides for the consolidation and coordination of all activities having to do with veterans' relief, including the Veterans' Bureau, the National Home for Disabled Volunteer Soldiers, and the Pension Bureau, into an establishment to be known as the "Administration of Veterans' Affairs."

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The language is broad enough to permit the President to bring in under this administration any hospital units throughout the country now operated by some other department of the Government in the event that such units should no longer be needed by the departments now conducting them. Army and Navy hospitals and clinics utilized for the treatment of soldiers and sailors, the United States Soldiers' Home, Washington, D. C., and the United States Naval Home, Philadelphia, Pa., do not come within the terms of the bill and are not affected.

In order that the new establishment may function efficiently, with as little duplication as possible, provision is made in subdivision (b) for regrouping the various activities and redistributing their functions so as to bring activities of a like nature under one head. For example, those compensation cases that have become fixed-which now compose nearly 70 per cent of the whole number-might well be administered by the Pension Bureau.

Statutory bureaus will continue to function as the committee has not attempted to change the law prescribing their activities further than to transfer the duties and powers vested in their respective executive heads to the Administrator of Veterans' Affairs. This is essential if a uniform, consistent, and really efficient program of veterans' relief is to be realized.

Section 2: This section provides for an Administrator of Veterans' Affairs, into whose hands are concentrated the duties and powers now exercised by the Commissioner of Pensions, the Board of Managers of the National Home for Disabled Volunteer Soldiers, and the Director of the Veterans' Bureau. Inevitably, the magnitude of the new administration will compel him to act in an administrative and supervisory capacity, and such is the intention. It is to be expected that the heads of the Pension Bureau, the National Home for Disabled Volunteer Soldiers, and the Veterans' Bureau will continue to function very much as they do at present, but in complete coordination and as a harmonious whole, in place of three competitive units, each striving to enlarge its program and to get the largest possible appropriations.

Your committee believes that unity of direction, purpose, and program will be greatly in the interest of efficiency, economy of operation, and improved services to the veterans.

Section 3: This section transfers all property now standing in the name of the Board of Managers of the National Home for Disabled Volunteer Soldiers to the United States. The Board of Managers is a Federal instrumentality and stands in the capacity of trustee for the United States, which is the actual owner. Congress therefore has authority to make the transfer directly.

The land upon which the Pacific Branch at Sawtelle, Calif., is located was donated to the Board of Managers by the late Senator John P. Jones. The deed of conveyance carries a defeasance clause which provides that in the event that the land should cease to be used for soldiers' home purposes it shall revert to the donor or to his heirs. While no complications are expected, your committee thought that

provision should be made in the bill for extinguishing any outstanding adverse interest, if the full use and enjoyment of the property should ever be threatened by such heirs.

Section 4: Section 4 provides for taking over the personnel of the National Home for Disabled Volunteer Soldiers and placing them in the new administration, subject to such change in designation and organization as the administrator of veterans' affairs shall deem necessary. Provision is also made for covering them into the civil service should the President think advisable but, whether brought into the civil service or not, their salaries will be fixed in accordance with the classification act of 1923.

Section 5: This section provides for the dissolution of the corporation known as the National Home for Disabled Volunteer Soldiers and discontinues the Board of Managers. It also provides for maintaining the integrity of all existing contracts of the Board of Managers and gives claimants the right to sue the Government, in the event this should become necessary to enforce their contracts or claims.

Section 6: This section contains the usual provisions carried in consolidation bills with respect to appropriations, rules and regulations, and reports. Appropriations for the activities consolidated are made available for the purposes appropriated in the new set-up.

Existing orders, rules, and regulations will be retained until modified, superseded, or repealed by the administrator.

A report is required to be filed annually setting out progress made in reorganizing and coordinating the various activities under the jurisdiction of the administrator, together with any recommendations that he may think appropriate. He is also required to make a financial statement of all receipts and disbursements.

Section 7: This is a covering section providing that all existing laws, so far as applicable, relating to the Bureau of Pensions, the National Home for Disabled Volunteer Soldiers, and the Veterans' Bureau shall remain in full force and effect except as modified in the bill and shall be administered by the administrator of veterans' affairs.

No change is made in the substantive law relating to the above activities except in so far as it is essential to bring them under the new administration. All laws relating to pensions, disability, compensation, hospitalization, and home care for veterans remain intact. No soldier or sailor need fear that his rights are in any way jeopardized or curtailed. On the contrary, the new set-up should result in improving his situation with respect to veterans' relief.

GENERAL STATEMENT

PUSPOSE OF BILL

The underlying purpose of the bill is to bring together all governmental activities having to do with veterans' relief of whatever character with a view to securing better coordination, added efficiency,