shall be paid him as would equal the total sum by which his compensation has been reduced or discontinued through the provisions of this subdivision.

"All or any part of the compensation of any mentally incompetent inmate of an institution, may, in the discretion of the director, be paid to the chief officer of said institution to be properly accounted for and to be used for the benefit of such inmate, or may, in the discretion of the director, be apportioned to wife, child or children, or dependent parents in accordance with regulations.

"That any ex-service person shown to have had a tuberculous disease of [a compensable degree, who in the judgment of the director has reached a condition of complete arrest of his disease,] service origin, whether active or otherwise, shall receive compensation of not less than $50 per month: Provided, however, That nothing in this provision shall deny a beneficiary the right to receive a temporary total rating for six months after discharge from a one year's period of hospitalization Provided further, That no payments under this provision shall be retroactive, and the payments hereunder shall commence from the date of the passage of this amendatory act or the date the disease reaches a condition of arrest, whichever be the later date.

"The director is hereby authorized and directed to insert in the rating schedule a minimum rating of permanent partial 25 per cent for arrested or apparently cured tuberculosis."

SEC. 14. That two new paragraphs be added to subdivision (10) of section 202 of the World War veterans' act, 1924, as amended (section 484, title 38 United States Code), to read as follows:

"Where a World War veteran hospitalized under this section for a period of more than thirty days files an affidavit with the commanding officer of the hospital to the effect that his annual income, inclusive of compensation or pension, is less than $1,000, there shall be paid to the dependents of such veteran (commencing with the expiration of such thirty-day period and to be payable) during the period of any further continuous hospitalization and for two calendar months thereafter, the fol lowing amount of compensation:

(a) If there is a wife but no child, $30 per month,

"(b) If there is a wife and one child $40 per month, with $6 for each additional child;

"(c) If there is no wife but one child, $20 per month,

"(d) If there is no wife but two children, $30 per month;

"(e) If there is no wife but three children, $40 per month, with $6 for each addiional child.

"For the purposes of this section the Spanish-American War shall be construed to mean service between April 21, 1898, and July 4, 1902, and the term 'veteran' shall be deemed to include those persons retired or otherwise not dishonorably separated from the active list of the Army or Navy.”

SEC. 15. That subdivision (15) of section 202 of the World War veterans' act, 1924, as amended (section 489, title 38, United States Code), be hereby amended to read as follows:

"(15) That any person who is now receiving a gratuity or pension from the United States under existing law shall not receive compensation under this section unless he shall first surrender all claim to further payments of such gratuity or pension, except as hereafter provided and in subdivision (7) of section 201: Provided, That in the event of surrender of pension as hereinbefore set forth, any disability incurred in the military service of the United States, by reason of which said pension would be payable, shall be evaluated in accordance with the provisions of subdivision (4), section 202, and shall be payable as compensation under this act: Provided further, That such compensation rating shall be combined with any other compensation rating awarded by reason of active service in the World War."

SEC. 16. That section 206 of the World War veterans' act, 1924, as amended (section 495, title 38, United States Code), be hereby repealed.

["SEC. 206. That no compensation shall be payable for death or disability which does not occur prior to or within one year after discharge or resignation from the service, except as provided in section 200 of this act, and except where there is an official record of the injury during service or at the time of separation from active service, or where prior to April 6, 1930, satisfactory evidence is furnished the bureau to establish that the injury was suffered or aggravated during active service. Where there is official record of injury during service compensation shall be payable in accordance with the provisions of this title, for death or disability whenever occurring, proximately resulting from such injury.”]

SEC. 17. That section 209 of the World War veterans' act, 1924, as amended (section 498. title 38. United States Code), be hereby repealed.

HR-71-2-vol. 256

["SEC. 209. That Lo compensation shall be payable and that (except as provided by subdivision (10) of section 202 hereof) no treatment shall be furnished unless a claim therefor be filed in case of disability within five years after discharge or resignation from the service, or in case of death during the service within five years after such death is officially recorded in the department under which he may be serving: Provided, however, That where compensation is payable for death or disability occurring after discharge or resignation from the service, claim must be made within five years after such death or the beginning of such disability.

["The time herein provided may be extended by the director up to April 6, 1930, for good cause shown. If at the time that any right accrues to any person under the provisions of this title such person is a minor, or is of unsound mind or physically unable to make a claim, the time herein provided shall not begin to run until such disability ceases.]

SEC. 18. That section 210 of the World War veterans' act, 1924, as amended (section 499, title 38, United States Code), be hereby amended to read as follows: "SEC. 210. That no compensation shall be payable for any period more than one year prior to the date of claim therefor, nor shall increased compensation be awarded to revert back more than six months prior to the date of claim therefor: Provided, That nothing herein shall be construed to permit the payment of compensation under the World War veterans' act, as amended, for any period prior to June 7, 1924. Except in case of fraud participated in by the beneficiary, no reduction in compensation shall be made retroactive. This section, as amended, shall be effective as of June 7, 1924."

SEC. 19. That section 212 of the World War veterans' act, 1924, as amended (section 422, title 38, United States Code), be hereby amended by adding thereto the following provisos: "Provided further, That where death occurs subsequent to June 7, 1924, as a result of a disease or injury for which the veteran was entitled to compensation by virtue of an accrued right under the war risk insurance act, as amended, his dependents shall be entitled to the compensation provided by section 201 of this act: Provided further, That an application for compensation under the war risk insurance act, as amended, shall be deemed to be a claim for compensation under this act, and an application for compensation under the provisions of this act shall be deemed to be a claim for compensation under all subsequent amendments to said act, this proviso to be effective as of June 7, 1924."

SEC. 20. That a new section be added to Title II of the World War veterans' act, 1924, as amended (section, title 38, United States Code), to be known as section 214, and to read as follows:

"SEC. 214. Where an incompetent veteran receiving disability compensation under the provisions of this act disappears, the director, in his discretion, may pay to the wife, child, or children of such veteran the amount of compensation provided in section 201 of the World War veterans' act, 1924, as amended, for dependents of veterans."

SEC. 21. That section 301, paragraphs 3 and 4, of the World War veterans' act, 1924, as amended (section 512, title 38, United States Code), be hereby amended to read as follows:

"In case where an insured whose yearly renewable term insurance has matured by reason of total permanent disability is found and declared to be no longer permanently and totally disabled, and where the insured is required under regulations to renew payment of premiums on said term insurance, and where this contingency is extended beyond the period during which said yearly renewable term insurance otherwise must be converted, there shall be given such insured an additional period of two years from the date on which he is required to renew payment of premiums in which to reinstate or convert said term insurance as herein before provided: Provided, That where the time for conversion has been extended under the second paragraph of this section because of the mental condition or disappearance of the insured, there shall be allowed to the insured an additional period of two years from the date on which he recovers from his mental disability or reappears in which to convert.

"The insurance, except as provided herein, shall be payable in two hundred and forty equal monthly installments: Provided, That when the amount of an individual monthly payment is less than $5, such amount may, in the discretion of the director, be allowed to accumulate without interest and be disbursed annually. Provisions for maturity at certain ages, for continuous installments during the life of the insured or beneficiaries, or both, for refund of premiums, cash, loan, paid-up and extended values, dividends from gains and savings, and such other provisions for the protection and advantage of and for alternative

benefits to the insured and the beneficiaries as may be found to be reasonable and practicable, may be provided for in the contract of insurance, or from time to time by regulations. All calculations shall be based upon the American Experience Table of Mortality and interest at 31⁄2 per centum per annum, except that no deduction shall be made for continuous installments during the life of the insured in case his total and permanent disability continues more than two hundred and forty months. Subject to regulations, the insured shall at all times have the right to change the beneficiary or beneficiaries without the consent of such beneficiary or beneficiaries, but only within the classes herein provided.' SEC. 22. That the last proviso of section 304 of the World War veterans' act, 1924, as amended (section 515, title 38, United States Code), be hereby amended to read as follows: "And provided further, That, except as provided in section 301 of the World War veterans' act, as amended, no yearly renewable term insurance shall be reinstated after July 2, 1927."

SEC. 23. That section 307 of the World War veterans' act, 1924, as amended (section 518, title 38, United States Code), be hereby amended to read as follows: "SEC. 307. All [such] contracts or policies of insurance heretofore or hereafter Issued, reinstated, or converted shall be incontestable [after the insurance has been in force six months] from the date of issuance, [or] reinstatement, or conversion, except for fraud, [or] nonpayment of premiums, or on the ground that the applicant was not a member of the military or naval forces of the United States, and subject to the provisions of section 23: [Provided, That a letter mailed by the bureau to the insured at his last known address informing him of the invalidity of his insurance shall be deemed a contest within the meaning of this section:] Provided, That the insured under such contract or policy may, without prejudicing his rights, elect to make claim to the bureau or to bring suit under section 19 of this act on any prior contract or policy and, if found entitled thereto, shall, upon surrender of any subsequent contract or policy, be entitled to payments under the prior contract or policy: Provided further, That this section shall be deemed to be [in effect] effective as of April 6, 1917, and applicable from that date to all contracts or policies of in

surance.

SEC. 24. That section 311 of the World War veterans' act, 1924, as amended (section 512b, title 38, United States Code), be hereby amended to read as follows:

"SEC. 311. The director is hereby authorized and directed to include in [the] United States Government life (converted) insurance [policy] policies provision whereby an insured, who is totally disabled as a result of disease or injury for a period of [twelve] four consecutive months or more before attaining the age of sixty-five years and before default in payment of any premium, shall be paid disability benefits [under the contract as though he or she were permanently and totally disabled] at the rate of $5.75 monthly for each $1,000 of converted insurance in force when total disability benefits become payable. The amount of such monthly payment under the provisions of this section shall not be reduced because of payment of permanent and total disability benefits under the United States Government life (converted) insurance policy. Such payments shall be effective as of the [date of beginning of total disability] first day of the fifth consecutive month, and shall be made monthly [in accordance with the terms of the contract] during the continuance of such total disability. Such payments [under this section] shall be [made] concurrent with or independent of [any other benefit provided in the contract, and during the period of such payments all premiums on such insurance shall be waived] permanent total disability benefits under the United States Government life (converted) insurance policy. In addition to the monthly disability benefits the payment of premiums on the United States Government life (converted) insurance policy and for the total disability benefits authorized by this section shall be waived during the continuance of such total disability. Regulations shall provide for reexaminations of beneficiaries under this section; and, in the event that it is found that an insured is no longer totally disabled, the waiver of premiums and payment of benefits shall cease and the provisions of the] United States Government life (converted) insurance policy, [with reference to permanent total disability shall apply: Provided, That the] including the total disability provision authorized by this section, may be continued by payment of premiums as provided in said policy and the total disability provision authorized by this section. Neither the dividends nor the amount payable in any settlement under any United States Government life (converted) insurance policy shall be decreased because of disability benefits granted under the provisions of this section. The payment of total disability benefits [of this section] shall not prejudice the right of any insured, who is [otherwise permanently totally and [totally] permanently disabled [Provided

further, That the] to total permanent disability benefits [of this section shall only be granted upon application made by the insured at the time of the original application for] under his United States Government life (converted) insurance policy: [or after such application at any time during the life of the contract, upon] Provided, That the provision authorized by this section shall not be included in any United States Government life (converted) insurance policy heretofore or hereafter issued, except upon application, payment of premium by the insured, and proof of good health satisfactory to the director. The benefits granted under this section shall be on the basis of multiples of $500, and not less than $1,000 or more than the amount of United States Government life (converted) insurance in force at time of application. The director shall determine the amount of the monthly premium [necessary] to cover the benefits of this section, and in order to continue such benefits in force the monthly premiums shall be payable until the insured attains the age of sixty-five years or until the prior maturity of the policy. In all other respects such monthly premium [must] shall be [paid by the insured] payable under the same terms and conditions as the regular monthly premium on [his] the United States Government life (converted) insurance [contract] policy."

Sec. 25. This amendment shall not affect rights which have accrued under the World War veterans' act, 1924, as amended, prior to the approval of this amendatory act, but all such rights shall continue and may be enforced in the same manner as if said amendatory act had not been approved

2d Session

Part 2

AMEND WORLD WAR VETERANS' ACT, 1924

MARCH 13, 1930.-Ordered to be printed

Mr. RANKIN et al., from the Committee on World War Veterans' Legislation, submitted the following

MINORITY REPORT

[To accompany H. R. 10381]

We have read with interest the majority report on this bill.

It is amazing for its inconsistencies and amusing for its attacks on the Rankin bill (H. R. 7825).

It reveals to the world what we members of the committee already knew; that is, if it had not been for our fight for the Rankin bill the chances are there never would have been any bill reported. This so-called Johnson bill would never have seen the light of day. In fact, the majority report is more an attack on the Rankin bill than it is an argument in favor of the so-called Johnson bill.

The reason for this is evident. The veterans wanted, and still want, the Rankin bill. It was supported from the beginning by the disabled veterans of the World War and by American Legion posts throughout the country. It has practically the unanimous indorsement of our disabled veterans whether they come within its provisions or not.

Hon. Thomas Kirby, legislative chairman of the Disabled American Veterans of the World War, and Hon. William J. Murphy, of California, national commander of that organization, gave the Rankin bill their unqualified and enthusiastic support. Hon. Watson B. Miller, chairman of the national rehabilitation committee of the American Legion, stated on the witness stand that while the question had not been passed upon by the national organization of the American Legion, he personally favored certain features in the Rankin bill. The American Legion of the State of Pennsylvania passed resolutions favoring its passage.

In fact, this bill (H. R. 7825) expresses the wishes of the ex-service men throughout the country, as well as the wishes of the American people as a whole. We make this statement in answer to the propaganda that has been whispered around by those opposing the Rankin bill in order to try to build up sentiment against it.