month is certainly inadequate. The first-year cost to equalize rates amounts to something like $865 million. Mr. KORNEGAY. That is, if you leave the 100 percent at $300 a month? Mr. HUBER. Yes. Our convention recognized this fact of economics, I believe, and the reason they adopted our resolution was that certainly the 100-percenters must be taken care of first. I don't think they thought it was practical or feasible or possible at this point to get the large amount of money that it would take to equalize the rates and still put the 100-percenter where he belongs. Mr. KORNEGAY. Do you have any figures as to equalizing the cost if you raised the 100-percent rate to $450 as you suggest? Mr. HUBER. No, sir. Mr. KORNEGAY. Thank you very much. We appreciate so much your coming. It is always a pleasure to have you appear before the subcommittee. STATEMENT OF FRANCIS W. STOVER, DIRECTOR, NATIONAL LEGISLATIVE SERVICE, VETERANS OF FOREIGN WARS; ACCOMPANIED BY NORMAN D. JONES, DIRECTOR, NATIONAL REHABILITATION SERVICE Mr. KORNEGAY. Our next witness this morning is Francis W. Stover, director of National Legislative Service of the Veterans of Foreign Wars. Mr. Stover, it is a real pleasure to have you and your associates before the subcommittee this morning, and you may proceed to testify in any manner you see fit. Mr. STOVER. Thank you, Mr. Chairman. On my right is Norman D. Jones, director of our national rehabilitation service. Mr. Chairman and members of the subcommittee, may I extend the thanks and appreciation of the Veterans of Foreign Wars of the United States for this opportunity and privilege of presenting our views concerning legislation so important to our membership. My name is Francis W. Stover and my title is director of the National Legislative Service of the Veterans of Foreign Wars of the United States. Since the beginning of this Republic, service-connected benefits to the disabled veteran and his dependents have been the first to be provided. There is no question that the people of the United States are willing to support liberal and generous benefits for those who have been wounded or disabled because of their war service. As we have stated on many occasions, the service-connected disabled deserve the highest consideration. The Veterans of Foreign Wars down through the years has taken this same position with respect to our priority legislative goals. This year, for example, our commander in chief has put his stamp of approval on a seven-point priority program, number one of which deals with compensation. As stated in our goals, the compensation program for service-connected death and disability for all veterans or their dependents must be continuously revised to maintain an adequate standard of living, taking into consideration cost-of-living increases, loss of earnings, growth capability, and equitable adjustment of payments to widows or eligible dependents to sustain their rights through periods of changing status. The basic position of the Veterans of Foreign Wars is found in the mandates approved by our national conventions. At our most recent convention, which was held in New Orleans last August, several resolutions presented to the delegates, representing 1,400,000 members, which are germane to the bills under consideration by this subcommittee today were unanimously approved. It will be deeply appreciated, Mr. Chairman, if copies of these resolutions dealing with service-connected compensation will be made a part of my remarks at this point. (Resolutions Nos. 5, 41, 51, 55, 81, 85, 90, 94, 102, 103, 107, and 119.) Mr. KORNEGAY. Without objection, it is so ordered. (The material referred to follows:) RESOLUTION No. 5-ADJUSTMENT IN COMPENSATION RATES FOR SERVICE-CONNECTED DISABLED VETERANS Whereas, veterans who have suffered wounds and disabilities during wartime service deserve the highest consideration or, if deceased, their surviving widows, children, and parents; and Whereas, compensation payments reflect the loss of earning capacity and standards of living caused by the veterans' disability; and Whereas, failure to keep compensation payments on a par with the increased cost of living, which has skyrocketed during the last decade; and Whereas, the average family income of Americans is now over $6,000 per year; and Whereas, a shortened life span caused by a service-connected disability is not a factor in his loss of earning capacity; and Whereas, with a 100 per cent totally disabled veteran receiving a maximum of $300 a month, which is only $3,600 a year, the compensation program is out of joint with the $6,000 a year standard of living other Americans are enjoying: Now, therefore, be it Resolved, by the 68th National Convention of the Veterans of Foreign Wars of the United States, That the Congress undertake a deep and comprehensive study of the compensation program to the end that compensation payments for the service disabled shall be brought in line with the standards of living that these veterans would have been enjoying had they not suffered their serviceconnected disability. Adopted by the 68th National Convention of the Veterans of Foreign Wars of the United States held at New Orleans, La., August 20 through 25, 1967. RESOLUTION No. 41-VETERANS' ADMINISTRATION COMPENSATION PROGRAM Be it resolved by the 68th National Convention of the Veterans of Foreign Wars of the United States, That we seek approval of the following recommendations by administrative changes or legislation, as applicable: 1. Substantial increases in compensation for veterans of not less than 15%. 2. Substantial death compensation rate increases. 3. Substantial increases in income guidelines and limitations for dependency of parents for death compensation and DIC purposes under Sections 102 and 415, H.R. 168-DIC respectively, Title 38, U.S.C. 4. Substantial regular aid and attendance allowance increase. 5. Classifications of campaigns and expeditions involving hostilities as wartime service. 6. Presumption of service connection of psychosis if manifested within three years following wartime service. 7. Elimination of the prohibition against payment of dependency and indemnity compensation in any case because Government Life Insurance was in force at time of death by waiver of premiums under Section 724, Title 38, U.S.C. (formerly Section 622, NSLI Act). 8. Extension of presumptive service connection accorded to chronic diseases to veterans on the same basis as wartime service with campaign or wartime service adopted as amended to support H.R. 168. Adopted at the 68th National Convention of the Veterans of Foreign Wars of the United States held at New Orleans, Louisiana, August 20 through 25, 1967. RESOLUTION No. 51-INCREASED COMPENSATION RATES Whereas, $3,000.00 per year is now considered as border line poverty income: Now, therefore, be it Resolved by the 68th National Convention of the Veterans of Foreign Wars of the United States, That we request the Congress of the United States to so amend existing and subsequent laws as to provide payment for service connected disabilities on the following scale which is more realistic than the present rate of compensation: With proportionate increases in statutory awards and an overall additional increase of 10% for overseas or combat veterans. Adopted at the 68th National Convention of the Veterans of Foreign Wars of the United States held at New Orleans, Louisiana, August 20 through 25, 1967 RESOLUTION No. 55-INCREASED STATUTORY AWARD FOR ARRESTED TUBERCULOSIS Whereas, on December 1, 1949, a statutory award of $67.00 per month was placed in effect for veterans with service connected tuberculosis, arrested; and Whereas, since that date the cost of living has increased more than 30%, and while all other compensation rates have more than doubled, the "Statutory Award" has not been amended; and Whereas, while all other veterans have received compensation increases, the American public and private industry continues to bar tuberculars; in fact some states have specific laws to bar tuberculars from jobs in food handling and public service where the tubercular would have direct contact with the public, all of which destroy the tuberculars economic chances: Now, therefore, be it Resolved by the 68th National Convention of the Veterans of Foreign Wars of the United States, That an immediate action be taken to increase the "Statutory Award" for arrested tuberculosis to a minimum of $100.00 per month. Adopted at the 68th National Convention of the Veterans of Foreign Wars of the United States held at New Orleans, Louisiana, August 20 through 25, 1967. RESOLUTION No. 81-RETROACTIVE PAYMENTS OF COMPENSATION Whereas, changes in medical knowledge have resulted in the adoption of laws that extend the legal presumptive periods of chronic diseases; and Whereas, prior to the passage of such legislation, a claimant who has presented a claim to the Veterans Administration for the involved disability and has received an unfavorable rating action because of the then existing legal presumptive period; and Whereas, it is administratively impossible for the Veterans Administration to invite a claim under the provisions of the new legislation; and Whereas, if the veteran reopened his case within one year of passage of said legislation, he would receive benefits retroactive to date of enactment, or if he waited 13 months or longer, he would be entitled to only one year back up payments; and Whereas, the involved veteran may go for several years before he discovers his entitlement; and Whereas, the fact of the matter is if he were to reopen his claim within the 12 month period of the passage of the law, he would have been receiving benefits effective as of date of enactment; and Whereas, when there was a prior claim, supported with medical evidence in the claims folder, showing entitlement on the date of passage of the law: Now therefore, be it Resolved by the 68th National Convention of the Veterans of Foreign Wars of the United States, That legislation be introduced and supported that would provide retroactive payments of compensation to the date of passage on all claims supported with medical findings that were on file prior to the passage date of the new law providing a legal presumptive provision. Adopted at the 68th National Convention of the Veterans of Foreign Wars of the United States held at New Orleans, Louisiana, August 20 through 25, 1967. RESOLUTION No. 85.-HIGHER MONETARY AWARDS FOR COMBAT OF EXTRAHAZARDOUS SERVICE DISABILITIES Whereas, the Congress of the United States has justly recognized that Medal of Honor holders, because of their valor and extra risk to life, are entitled to a special $100 per month payment so long as they shall live; and Where, the military, in keeping with the same type of philosophy, provides extra monthly pay for service personnel engaged in extra-hazardous service, such as the combat infantryman's badge, paratroopers, submarine service, flight pay and combat medical badge; and Whereas, the present monthly monetary awards for service connected disabilities are predicated on the dates of service without regard to the nature of incurrence of the disability; and Whereas, we propose no change in the present two monthly types of rates for the wartime and peacetime service; and Whereas, we propose no change in the 1945 Schedule for Rating Disabilities, the established criteria of evaluating the service connected conditions; and Whereas, the term combat disability/disabilities means any wound, injury, or chronic disease incurred as a result of armed conflict, while engaged in extrahazardous service; Now, therefore, be it Resolved by the 68th National Convention of the Veterans of Foreign Wars of the United States, That legislation be introduced and supported that will recognize those veterans, who through extra risk to life, incurred a disability/ disabilities by creating a higher monthly payment, employing the same ratio as a peacetime award as opposed to a wartime rate. Adopted at 68th National Convention of the Veterans of Foreign Wars of the United States held at New Orleans, La., August 20 through 25, 1967. RESOLUTION No. 90-PRESUMPTIVE PERIOD FOR POLIOMYELITIS, NEUROLOGICAL AND NEURO-MUSCULAR CONDITIONS Whereas, the Veterans Administration has established Presumption Periods relating to Veterans contracting certain diseases that have manifested to a degree of 10% within one year from date of separation from any branch of the armed services to a period in length of 7 years as, for example, multiple sclerosis; and Whereas, the disease of poliomyelitis, neurological and neuro-muscular conditions have an incubation period of less than one year under the present regulations of the Veterans Administration; and Whereas, it has been established by Part I, Veterans Regulation 1 (as) (as amended) of the Veterans Administration that every veteran who served in the active military or naval services during World Wars I, II, Korean conflict and Vietnam conflict shall be taken to have been in sound condition when examined, accepted and enrolled for service, except for defects and disabilities noted at time of examination, acceptance and enrollment or where clear and unmistakable evidence demonstrates that the injury or disease existed before his acceptance and enrollment and was not made worse by his active military or naval service; and Whereas, many veterans being processed for discharge, being in somewhat rundown physicial condition, due to rugged military service and where poliomyelitis was known to be prevalent, did within one year after separation, develop this crippling disease that has resulting in paralysis for some veterans: Now, therefore, be it Resolved by the 68th National Convention of the Veterans of Foreign Wars of the United States, That we request that the presumptive period for poliomyelitis, neurological and neuro-muscular conditions be changed from less than one year to one year following release or discharge from the military service thereby entitling those disabled veterans suffering from poliomyelitis, neurological and neuromuscular conditions to the same benefits under regulations in effect for diseases with extended presumptive periods. Adopted at the 68th National Convention of the Veterans of Foreign Wars of the United States held at New Orleans, La., August 20 through 25, 1967. RESOLUTION No. 94-TOTAL DISABILITY PAYMENTS HOSPITALIZED VETERANS Be it resolved, by the 68th National Convention of the Veterans of Foreign Wars of the United States, That appropriate legislation be enacted by Congress to award total disability payments to veterans hospitalized in VA Hospitals after eight (8) days when hospitalized for service connected disabilities; and be it further Resolved, That the National Legislative Committee and the National Legislative Director incorporate this resolution into the V.F.W. Legislative Program for 1968. Adopted at the 68th National Convention of the Veterans of Foreign Wars of the United States, held at New Orleans, La., August 20 through 25, 1967. RESOLUTION No. 102-AMENDMENT TO SECTION 314(K), TITLE 38, Whereas, under Section 314 (K), Title 38, U.S. Code provides currently a special monthly compensation award for a $47.00 a month payment; and Whereas, this amount has not been increased or considered for many years; and Whereas, it is apparent that legislation should be considered increasing this rate; and Whereas, the original intent of Section 314 (K) was for Special Monthly Compensation for the loss of or loss of a hand, leg or eye: Now, therefore, be it Resolved by the 68th National Convention of the Veterans of Foreign Wars of the United States, That we go on record seeking change in Section 314 (K) to apply only to those cases involving a hand, leg or eye; and be further Resolved, That any other types of cases be placed in a separate section of 314 Title 38 U.S. Code; and be is further Resolved, That legislation be sought to grant the increase in the (K) cases from $47.00 to $60.00 monthly for the "K" cases of a hand, leg, or eye. Adopted at the 68th National Convention of the Veterans of Foreign Wars of the United States, held at New Orleans, La., August 20 through 25, 1967. RESOLUTION No. 103-AMENDMENT TO SECTION 355, TITLE 38, UNITES STATES CODE, INCREASING BELOW KNEE AMPUTATION RATES Whereas, loss or loss of use of a lower extremity below the knee provides only a maximum 40% rating; and |