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cases.

Mr. Dorn. Yes, but there is no way in the world of determining whether a man might become a father after he is in the service. That is the main question.

You could not expect a man because he was in the Army to never marry and have children. That always happens in 99 percent of the

Subsequently to his induction, he is going to get married and have children. He might become totally disabled. That is a good point, Mrs. Dwyer.

Mrs. DWYER. But if we do not spend money for foreign policy, perhaps we will have a war. You see you can look at it both ways.

Mr. Davis. There is another way, Mrs. Dwyer. I have some figures here. They are approximate. There are approximately 41,000 veterans with children who are totally disabled from service-connected disabilities.

That includes veterans of World Wars I, II, and Korea. There are 31,000 World War II veterans, who are totally disabled with children; 7,000 Korean; and 3,000 World War I, totally disabled with children.

Then back to the question, the ratio mathematically would be between 41,000 and 17 million who served-only 41,000 totally disabled out of 17 million who served.

That is out of three wars. I do not know how many children the Korean veterans will have yet. They are too young, but I would say that the total magnitude is very small-41,000 to 17 million mathematically.

Therefore, perhaps the cost will not be as great as we anticipate.
Mr. Dorn. Does that complete your testimony?
Mr. Davis. Yes, Mr. Chairman.
Mr. Dorn. Thank you, Mr. Davis.
The next witness is Mr. Stover from the Veterans of Foreign Wars.

STATEMENT OF FRANCIS W. STOVER, LEGAL COUNSEL, NATIONAL

LEGISLATIVE SERVICE, VETERANS OF FOREIGN WARS OF THE UNITED STATES, ACCOMPANIED BY NORMAN D. JONES, ASSISTANT DIRECTOR OF REHABILITATION AND WELFARE SERVICE, VETERANS OF FOREIGN WARS

Mr. STOVER. Thank you, Mr. Chairman. My name is Francis W. Stover, and I am the legislative counsel for the national legislative service, and I am accompanied this morning by Norman D. Jones, who is assistant director of our rehabilitation and welfare service.

Mr. Dors. We are delighted to have you gentlemen, and you may proceed.

Mr. STOVER. Mr. Chairman and members of the subcommittee, I appreciate the invitation and privilege to appear before your subcommittee to present the national viewpoint of the Veterans of Foreign Wars with respect to II. R. 5930, to amend the War Orphans' Educational Assistance Act of 1956, to provide educational assistance thereunder to the children of veterans who are permanently and totally disabled from wartime service-connected disability and for other purposes.

The legislative policy and position of the VFW is controlled largely by mandates or resolutions adopted at our national encampments-conventions.

At our most recent convention held in Dallas, Tex., in August 1956, one resolution was adopted pertinent to the bill under consideration today.

A digest of this resolution is as follows: To provide elucational benefits for children of war veterans who have a serviceconnected disability of such severity so as to preclude their participation in any of the training programs provided for them by existing laws.-Resolution 8 (a).

While our resolution does not specifically endorse II. R. 5930, it does indicate that our convention delegates are in favor and endorse the principle that the children of our most seriously service-connected disabled should be provided with educational benefits.

This bill proposes to provide educational assistance for those veierans who have a total disability, permanent in nature, resulting from their service, and is, therefore, broader in this respect than our own mandate, which would restrict the educational assistance to children of veterans who were so disabled they were unable to avail themselves of training under Public Law 16 or l’ublic Law 346.

I can assure this subcommittee the VFI strongly endorses the amendment to the War Orphans' Educational Assistance Act, so that it will also include children of totally disabled veterans,

The second section of H. R. 5930 proposes to pay for this educational assistance out of alien properties now being held by the Attorney General. Accordingly, no moneys will have to be appropriated to finance this legislation, which will appeal to many.

Our last national encampment, however, did not adopt any resolutions pertaining to the disposal of alien properties and fuids, and, lacking any mandate, I can only state that our organization has no position on this section of the bill.

The VFW is aware that this alien property fund is a sizable amount, at present in the hundreds of million dollars; that international agreements have been made concerning these properties, and, that there are various bills now in the Senate being considered this date concerning disposition of a part or all of these funds.

Congress has established a precedent concerning these properties when it has provided for payments to certain World War II prisoners of war out of these alien property funds. Whether this precedent is a prudent policy, the Congress and the administration must decide.

In conclusion, permit me to reemphasize our endorsement of the principle involved in amending the War Orphans' Educational Assistance Act to children of totally disabled veterans. The underlying philosophy of extending this aid to these seriously disabled veterans who have little or no opportunity to save any money for the education of their children is most praiseworthy, and this principle the VFW heartily endorses.

Lacking any position on the financing of this program out of alien property funds, I can only reiterate we have no official views concerning this part of the bill.

May I again express our appreciation for this invitation to express the views of the Veterans of Foreign Wars.

Mr. Dorn. Mr. Stover, would you mind expressing to the subcommittee a personal opinion on this bill, on how you feel your organization would feel about it officially, since you are a member of the Veterans of Foreign Wars and you have been associated for many years with this great organization.

I am just wondering if you would give us, or would care to express an opinion on this bill.

Mr. STOVER. The only part of the Trading With the Enemy Act I looked into, as I understand it, an Executive agreement was made-and you can correct me if I am wrong-was made in 1946, which provided that we would demand no reparations and in consideration for that, we would keep the alien property which we had seized, when war began.

The only thing that disturbs me is that this is private property of private citizens of these countries, and that philosophy or that concept is the only part of that agreement which arouses, shall we say, my curiousity.

Mr. Dorn. Of course, that agreement was certainly a good deal for Germany, and for these people who still lived there who would have had to pay a lot more taxes in reparation, and, therefore, they agreed to it.

Mr. Stover. The question that arises in my mind, is whether these private citizens, and perhaps these private citizens are all corporate entities, is this: Have they ever been reimbursed or indemnified for their holdings?

Mr. Dorn. That is beside the point. It is my understanding that the German Government did take over that responsibility in turn for us not assessing certain reparations, so that would certainly be up to their own' government.

Mrs. Dwyer, do you have any questions?
Mrs. DWYER. No questions.
Mr. DoRN. Mr. Whitener?

Mr. WHITENER. Yes. Your organization has the view that we should not use these funds?

Mr. STOVER. We do not oppose it, and we do not endorse it.
Mr. Dorn. It did not come up in your last convention, did it?
Mr. STOVER. If it came up in our last convention, they took no action

on it.

Mr. Dorn. Thank you very much.
Mr. Srover. Thank you, Mr. Chairman.

STOVER
Mr. Dorn. Pardon me, Mr. Whitener has a question.
Mr. WHITENER. How often does your legislative committee meet?
You have an office in Washington.

Mr. STOVER. Yes. The last meeting of our national legislative committee was February 4 and 5 here in Washington. They did not consider this Trading With the Enemy Act or this bill.

Mr. WHITENER. When will they meet again?

Mr. Stover. Whether they will meet again between now and next August, I do not know. I do not believe they will meet again until the next convention, which will be in Florida.

Mr. Dorn. Thank you very much, Mr. Stover.

The final witness we have listed here is Mr. Elmer M. Freudenberger of the Disabled Amercan Veterans.

I must say that you are a familiar face around here. We are always glad to see you.

93450_-57-4

STATEMENT OF ELMER M. FREUDENBERGER, ASSISTANT DIREC

TOR OF LEGISLATION, DISABLED AMERICAN VETERANS Mr. FREUDENBERGER. Thank you, Mr. Chairman. My name is Elmer M. Freudenberger, and I am assistant director of legislation for the Disabled American Veterans.

I do not have a prepared statement as our position with regard to H. R. 5930 can be expressed in a very few words.

The Disabled American Veterans strongly supports H. R. 5930 and urges enactment of this excellent legislation, which is designed to provide educational opportunities for the children of those unfortunate veterans who are permanently and totally disabled from wartime service-connected disabilities, and thus unable themselves to participate in gainful occupational activities.

In this connection, Mr. Chairman, I would like to submit for the record resolution No. 380 adopted by the National Convention of the DAV last year at San Antonio, Tex.

Mr. Dorn. Without objection, it is so ordered. (The above-mentioned document follows:)

RESOLUTION No. 380, LEGISLATION TRAINING

PROVIDE EDUCATIONAL OPPORTUNITIES TO CHILDREN OF VETERANS THO ARE TOTALLY

DISABLED AND UNABLE TO OBTAIN GAINFUL EMPLOYMENT

Whereas certain foreign nations, whose doctrines and principles of government, are not compatible with the principles of freedom, as guaranteed this Nation under its Bill of Rights, are making an all-out effort to lead the world in the field of scientific and medical knowledge by the underwriting of the entire cost of the education of their qualified youth in these fields of higher education; and

Whereas there is at this time in these United States a critical shortage of educated and trained personnel in the fields of science and medical arts; and

Whereas this Nation is rapidly losing its position as a world leader in these fields; and

Whereas Public Law 634, Sith Congress, provides educational opportunities only to children whose education might otherwise be impieded or interrupted by the death of a parent caused by disease or injury incurred or aggravated in the Armed Forces during World War I, World War II, or the Korean conflict; and

Whereas the law now provides educational opportunities for the children of deceased veterans, this resolution proposes that educational opportunities be provided for the children of living disabled veterans: Now therefore, be it

Resolved by the Disabled American Veterans, assembled in National Convention at San Antonio, Ter., August 18–24, 1956, That we go on record as sponsoring action by the Federal Government to provide educational opportunities to children whose education inight otherwise be impeded or interrupted by reason of being totally disabled and unable to be gainfully employed due to his serviceconuerted organic condition, the result of wartime service during World War I, World War II, or the Korean confiict, and to aid such children in obtaining educational status which they might normally have obtained except for the disability of such parent; and be it further

Resolved, That this resolution be adopted as a mandate of this convention as part of the national legislative program and declaration of the policy of the DAV.

Mr. FREUDENBERGER. In his letter to this committee dated April 3, 1957, the Administrator of Veterans Affairs made the point that the current rating schedule of the Veterans' Administration does not differentiate between total ratings and permanent total ratings.

It is true that the schedule provides a rating of 100 percent, using the figures for that purpose.

In that connection, I should like to read, if I may, the definitions of “total disability” and “permanent total disability” from VA Regulation 1166:

Total disability will be consisted to exist when there is present any impairment of mind or body which is sufficient to render it impossible for the average person to follow a substantially gainful occupation.

Permanent total disability will be taken to exist when the impairment is reasonably certain to continue throughout the life of the disabled person.

(The text of Veterans' Regulation 1166 reads in full as follows:)

VETERANS REGULATION 1166

TOTAL DISABILITY RATINGS UNDER PUBLIC LAW 2, 73D CONGRESS, AND THE 1954

SCHEDULE

(A) Total disability will be considered to exist when there is present any impairment of mind or body which is sufficient to render it impossible for the average person to follow a substantially gainful occupation: Provided, That permanent total disability shall be taken to exist when the impairment is reasonably certain to continue throughout the life of the disabled person.

(B) The following will be considered to be permanent total disability: The permanent loss of the use of both hands, or of both feet, or of one hand and one foot, or of the sight of both eyes, or becoming permanently helpless or permanently bedridden.

(C) Other provisions relative to total disability ratings are contained in the 1945 schedule.

(D) The authority granted the Administrator under Veterans Regulation No. 1 (b) for purposes of part III, Veterans Regulation No. 1 (a), to classify as permanent total those diseases and disorders, the nature and extent of which, in his judgment, will justify such a determination, will be exercised on proper submission under VA Regulation 1142.

(E) A permanent total rating under part III, Veterans Regulation No. 1 (a), will be authorized for congenital, hereditary, or familial conditions characterized by increase in disabling manifestations as distinguished from those purely static, providing the other requirements for entitlement are met.

NOTE.—The "only reference" to "permanent total” rating relate to pensions,

Mr. FREUDENBERGER. The Administrator does not say it, but he implies that it would be a burden upon the adjudicating agencies of the VA to make a determination of permanence in each case where there is an application for educational benefits under this bill if it becomes law.

As one who had over 30 years' service in the VA claims activities, I do not believe that it would be an undue burden upon the rating boards to make that determination, because for years under present regulations they have made what are called memorandum ratings for certain specific purposes of vocational rehabilitation and education and hospitalization. It would not be very difficult and would not be excessively time consuming in these cases to make such a determination with a memorandum rating as to the permanence of the total disability.

I believe that concludes my oral statement, Mr. Chairman, but if there are any questions, I will be very glad to try to answer them.

Mr. Dorn. Mr. Freudenberger, do you recall that the Veterans' Administration and the Bureau of the Budget opposed the war orphans' scholarship program?

Mr. FREUDENBERGER. My recollection is that they did.

Mr. Dorn. And the program was unanimously passed by the House and the Senate and is presently in operation and is working well ?

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