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Spanish War Veterans have approved coordination in the Department of the Interior.

A letter from Louis M. Semple, National Military Home, Dayton, Ohio, protesting against the transfer of the Soldiers' Home to the Veterans' Bureau. A letter signed by Frank Gribble, adjutant Jack Foster Camp, No. 3, United Spanish War Veterans, and A. M. Waterhouse, commander Army and Navy Union, Hot Springs, S. Dak., transmitting a petition signed by some 200 members of the Battle Mountain Sanitarium, earnestly protesting against transfer of the duties and powers of the Board of Managers of the National Home for Disabled Volunteer Soldiers to the control of the Veterans' Bureau.

LETTER RESTATING STAND OF VETERANS OF FOREIGN WARS
VETERANS OF FOREIGN WARS,

Hon. WILLIAM WILLIAMSON,

February 4, 1930.

Chairman Committee on Expenditures in Executive Departments,

House of Representatives, Washington, D. C.

MY DEAR MR. WILLIAMSON: It has come to my attention that there appears to be some doubt in the minds of the members of your committee as to the exact stand which the Veterans of Foreign Wars take on the present bill which you have before you for consideration, dealing with the consolidation of the Pension Bureau, National Soldiers' Home, and Veterans' Bureau into a single agency, The Veterans of Foreign Wars are just as consistently for the original bill to-day as they ever were, and my testimony and statement before your committee still stands as the ideas of our organization.

My only reason for entering into cooperation with Colonel Means and the other legislative chairmen is, and I believe this is the expression of the other men, that we acted purely on a request from the members of your committee in drawing up a suggested bill for consolidation upon which we could all agree. Therefore, so far as the measure reported to you by Colonel Rice Means is merely an alternative. That is to say, we would desire the bill now before your committee, but if that can not be had for the present time at least we would be satisfied with the report from the various legislative chairmen submitted to you by Colonel Means, and we would like to have you bring this matter to the attention of your committee so that they might know that there is no inconsistency on our part.

On January 20 I took the liberty of communicating with Mr. Walter Newton, the President's secretary, explaining to him our views on this particular program and saying that we were somewhat taken back by the testimony of the honorable Secretary of the Interior which would tend to intimate that it was the desire to place all these agencies in the Interior Department under the Pension Bureau, rather than under a single head responsible to the President, and that we did not want to embarrass the President by addressing a letter to him direct on the subject, but that we were desirous of knowing whether there was any statement made by the President to this effect, or whether it was believed that it was the President's idea for a combination under a separate bureau responsible direct to the President.

As the result, on January 27, I received the following reply from Mr. Newton: "MY DEAR MR. BETTELHEIM: Replying to your letter of the 20th instant, in his message to Congress in December the President requested legislation permitting the consolidation of the Veterans' Bureau, the Pension Bureau, and the National Home for Disabled Volunteer Soldiers into one organization.

"It is my understanding that he favors merging those veterans' activities into the Veterans' Bureau for the time being. Later on, and in connection with a general reorganization program which it is hoped can be worked out, the thought is to ultimately place all of these activities into a governmental department, but for the present the thought is to merge them into the Veterans' Bureau.

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COMPTROLLER GENERAL'S REPORT ON H. R. 6141

COMPTROLLER GENERAL OF THE UNITED STATES,
Washington, January 9, 1930.

Hon. WILLIAM WILLIAMSON,
Chairman Committee on Expenditures in the Executive Departments,
House of Representatives.

MY DEAR MR. CHAIRMAN: I have your letter of December 23, 1929, forwarding copy of H. R. 6141, being a bill to authorize the President to consolidate and coordinate governmental activities affecting war veterans, and requesting this office to submit report upon its proposed provisions.

It appears that sections 1 and 3 of the bill contain substantially the same provisions as were included in H. R. 16722, Seventieth Congress, upon which this office reported to your committee under date of February 25, 1929. It is assumed, therefore, that no further report is desired by you upon such sections, nor as to section 4 of the bill, which is merely a reenactment of prior laws not in conflict with the provisions of the bill, but that your request for a report is particularly as to section 2 of the proposed bill, which deals in detail with the abolition of the National Home for Disabled Volunteer Soldiers and its consolidation with the Veterans' Bureau. Said section 2 of the proposed bill provides:

"The Director of the United States Veterans' Bureau, under the direction of the President, shall have the control, direction, and management of the National Home for Disabled Volunteer Soldiers, established by the act of Congress approved March 21, 1866 (14 Stats., p. 10), as amended.

"The Board of Managers of said home shall convey to the United States all real and personal propery and equipment now held and used by said corporation, such conveyance to be subject to the approval of the Attorney General and to be recorded as he may find proper. In the event of failure of the Board of Managers or its inability to convey an absolute and indefeasible title to all property of the corporation or any part thereof, it shall be the duty of the Attorney General, upon request of the President of the United States, to institute in the district court or district courts of the United States for the district or districts within which such property is located such proceedings as shall be proper to effectuate the transfer of a valid title to the United States and to extinguish all outstanding adverse interests. The appropriations made for the acquisition of additional hospital, domiciliary, and out-patient dispensary facilities for persons entitled to hospitalization under the World War veterans' act, 1924, as amended, are hereby made available for the payment of compensation awarded in satisfaction of any adverse title to the property of the corporation acquired by the United States under the provisions of this act.

"The personnel now on duty at the various branches of the National Home for Disabled Volunteer Soldiers shall be transferred to and given appointment in the United States Veterans' Bureau, subject to such change in designation and organization as the director of the bureau may deem necessary, and thereupon both the Board of Managers and the corporation shall cease to exist.

"The Director of the United States Veterans' Bureau shall be vested with all of the functions, powers, and privileges heretofore conferred by law on the Board of Managers of said home and shall be charged with all administrative duties relating to the home and now imposed on the Secretary of War by the act of August 18, 1894 (28 Stats., p. 412; secs. 84 and 94, title 24, U. S. Code;) act of March 3, 1893 (27 Stats., p. 653; sec. 118, title 24, U. S. Code); act of March 3, 1875 (18 Stats., p. 359; sec. 122, title 24, U. S. Code); and the act of October 2, 1888 (25 Stats., p. 543; sec. 719, title 31, United States Code). Section 4835 of the Revised Statutes is hereby repealed.

"All contracts and other valid and subsisting obligations of the corporation shall continue and be and become obligations of the United States, and the United States shall be considered as substituted for the corporation with respect to all such demands either by or against the corporation, unless and until they shall thereafter be superseded or discharged according to law. The outstanding obligations assumed by the United States by virtue of the provisions of this paragraph may be enforced in the Court of Claims or in the district courts of the United States according to the ordinary provisions of law governing actions against the United States, and such courts shall have the power to enter judgment against the United States, with interest, in the same manner and to the same extent that the corporation may now be sued. No such suit shall be maintained upon any cause of action existing at the time of the dissolution of the corporation or arising simultaneously therewith, unless brought within one year from the time of such dissolution."

Paragraph 1 of section 2 actually transfers the control, direction, and manage ment of the National Home for Disabled Soldiers to the Veterans' Bureau and thus apparently goes further than the title and section 1 of the bill which give the President authority to consolidate and coordinate Government activities affecting war veterans, but if it is the intent of the bill as shown by paragraphs 3 and 4 of section 2 to abolish the Board of Managers and the corporation, I believe section 2 in that respect properly takes care of the matter.

As to the second paragraph, coupled with paragraph 5 thereof, there would appear to be ample provision made for the protection of the rights of communities and private individuals under the fifth amendment of the Constitution. A question arises, however, in connection with the jurisdiction of the State over such property. Attention in that connection is invited to the provisions of the acts of March 3, 1902 (31 Stat. 1175), and January 21, 1871 (16 Stat. 399), cited in my letter to you of February 25, 1929, in which the land was either ceded to the State or the Federal Government disclaims jurisdiction over places purchased and used for the location for the branches of the National Home for Disabled Volunteer Soldiers.

The present accepted rule of law is that when the United States merely buys land within a State for its use, or when the land is ceded for such purpose, the jurisdiction of the State wherein the land lies remains the same as before, just as if any other owner had acquired the land with the qualification that the State can not interfer with the full, free, and complete use for which the land was acquired or in any way embarrass that use. Divine v. Unaka National Bank (39 L. R. A. (N. S.) 586 (146 S. W. 747)); Fort Leavenworth Railway Co. v. Lowe (114 U. S. 525); Ohio v. Thomas (173 U. S. 276).

This feature is mentioned for such use as it may serve your committee. If it is intended that the jurisdiction of the State should continue as at present in cases where the jurisdiction is now exercised there would appear to be no need to refer to the matter in the bill. On the other hand, if it is thought that the Federal Government should have exclusive jurisdiction over places occupied by the National Home for Disabled Volunteer Soldiers after they are taken over by the United States Veterans' Bureau, it would seem necessary to include adequate language in the bill for the purpose. In cases in which the land has been ceded to the State, it may be found necessary for the State legislature to cede it back to the Federal Government.

As to the last citation in paragraph 4 of section 2, viz., 4835, Revised Statutes, it is not clear whether that section or section 4825 is intended. Section 4835 deals with the inmates of the home being subject to the Rules and Articles of War, while the remainder of the paragraph has reference to the transfer to the Veterans' Bureau of the functions, powers, and privileges heretofore conferred by law on the Board of Managers of said home. Section 4825 would fit in more closely with the description and hence the query whether that section was in fact intended.

As to your statement that the committee would be pleased to hear me personally or anyone I may designate, when hearings may be had on the bill, I do not believe that as the matter is now presented by you oral hearings by this office will be necessary, but if you think it advisable or desirable and will communicate with me further with respect thereto, I shall be pleased to designate a representative of this office to be heard at the hearings of your committee upon the proposed bill.

Sincerely yours,

J. R. MCCARL, Comptroller General of the United States.

WAR DEPARTMENT REPORT ON H. R. 6141

WAR DEPARTMENT,

Washington, D. C., January 8, 1930.

Hon. WILLIAM WILLIAMSON,

Chairman Committee on Expenditures in the

Executive Departments, House of Representatives.

DEAR MR. WILLIAMSON: Careful consideration has been given to the bill (H. R. 6141) to authorize the President to consolidate and coordinate governmental activities affecting war veterans, which you transmitted to the War Department by letter of December 23, 1929, with a request for a report thereon.

It is noted that the committee has for its information the report submitted on H. R. 16722, Seventieth Congress, by Hon. Dwight F. Davis, former Secretary of War, under date of February 13, 1929. In that report certain features

of the prior bill, which are also present in H. R. 6141 and which affect the War Department, are commented upon.

Expressed briefly, it is believed the present bill, although not specifically providing therefor, would authorize the transfer of individual military records, the United States Soldiers' Home, and possibly certain Army hospitals, to the Veterans' Bureau. The disavantage of such transfers from the standpoint of the War Department have been expressed fully in the previous report mentioned above* In so far as the bill affects the War Department, practically all pertinent information at the disposal of the department has been embodied in the abovementioned report. Should you desire that the subjects be elaborated upon, I should be very glad to designate representatives to cover any questionable phases. Sincerely yours,

PATRICK J. HURLEY,

Secretary of War.

REPORT OF HON. DWIGHT F. DAVIS, SECRETARY OF WAR ON H. R. 16722, AF-
FIRMED BY HON. PATRICK J. HURLEY IN CONNECTION WITH H. R. 6141
WAR DEPARTMENT,
Washington, February 13, 1929.

Hon. WILLIAM WILLIAMSON,
Chairman Committee on Expenditures in the Executive Departments,

House of Representatives.

DEAR MR. WILLIAMSON: Receipt is acknowledged of your recent letter requesting report on H. R. 16722, to "authorize the President to consolidate and coordinate governmental activities affecting war veterans."

The language of the bill, taken in connection with its title, seems to be sufficiently broad to include the transfer to the Veterans' Bureau of all military and medical records pertaining to individuals out of service, the control by it of military hospitals in which veterans are being treated, and the government by that bureau of the United States Soldiers' Home.

If it is the intention to include military and medical records of the War Department among those to be transferred to the proposed United States Veterans' Bureau, it is believed that a most serious error is being made and that the secondary instead of the prime use of the records would be served thereby.

Only two reasons can be considered as justifying the transfer of the military recores from this department of the United States Veterans' Bureau (1) present unsatisfactory service resulting in hardship to the veterans that would be corrected by such transfer and (2) less economical administration under existing method than would follow such transfer.

Regarding the first reason, it can be said that reports from this department to the Veterans' Bureau have been prompt and no unnecessary hardship has accrued to the veterans through delay in furnishing reports from the records of this department. On the contrary, the Director of the Veterans' Bureau has commenced this department on its prompt and satisfactory service.

The economical result of handling veterans' cases with all the military records in a Veterans' Bureau is doubtful when it is considered that the interpretation of those records and frequently necessary amendment of them are dependent upon military contact and a knowledge of the conditions under which the records were made. There can be no question as to the added cost that would result in handling all matters not veteran relief. All such cases would then be sent to the Veterans' Bureau for report, causing delay and additional expense in the Army administration. Such questions as appointment or reappointment of reserve officers, authority for former enlisted men to reenter service, badge and medal determinations, character of discharge, removal of charge of desertion under the law, and many other military questions constantly arising could not be settled within this department as at present, but would all go to the Veterans' Bureau for report, causing delay and additional expense. Even conceding that ultimately it might be less expensive to handle the record work connected with veterans' cases, if the military records could be so separated and transferred to the Veterans' Bureau that that work might be handled there exclusively, it is believed that the extra cost of disposing of the numerous other classes of work dependent upon those records would make the aggregate cost, as compared with the present cost, much greater. In addition to the expense involved in attempting to make a separation of records, which would entail considerable expert study, expense and labor, it would be impossible to separate all of the records pertaining to individuals because some relate to men in service as well out of service, and organroper adjudication of an

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individual claim. The confusion resulting from splitting the military records into two parts would necessitate the sending of every inquiry regarding a soldier whose entire record is not found in one department or bureau to the other department or bureau, whereas now any inquiry pertaining to the military records is disposed of in one place. Furthermore, because of the condition pertaining to the military records, it could never be assumed by the Veterans' Bureau, if it had possession of the individual military records, that all data essential to the proper adjudication of any case are in its custody, and, consequently, most if not all of the claims received in the Veterans' Bureau would be sent to the War Department for record information. The net result would be a costly division of responsibility instead of an economical concentrated responsibility and effort.

It would be impossible for the War Department to function properly in any emergency which necessitated calling into service a large force without the records of former officers and enlisted men. The selection and assignment of officers and enlisted men is predicated to a large extent upon their former records, and delay or confusion, or both, would occur in the formation of the military forces if the basic records were in the possession of an agency other than the War Department.

In view of the above, it is recommended that the bill be amended by inserting after the word "records," in line 2, page 2, the words "excepting the military [and naval?] records of the War [and Navy?] Departments.'

Under the provisions of the bill the United States Soldiers' Home might also be included in the proposed Veterans' Bureau.

In 1924 the proposal to include the United States Soldiers' Home is a new executive department was reported on by the joint committee or reorganization as follows:

"By some it has been argued that these establishments should be included in any department of the kind recommended by the committee. But the reasons commonly advanced are largely theoretical, and, in the judgment of the com mittee, should not prevail against the practical consideration that all these agencies are being satisfactorily administered under their present auspices.

"The Soldiers' Home does not, practically speaking, overlap the field of the Veterans' Bureau or the National Home for Disabled Volunteer Soldiers, since, for the most part, it undertakes to provide asylum only for disabled or superannuated veterans of the Regular Army, as distinguished from the much larger class of war veterans, composed chiefly of volunteeers or drafted men."

The United States Soldiers' Home was built and has been maintained by the enlisted men of the Regular Army. These soldiers regard it as their home and take a pride in it accordingly. It would be a mistake to disregard this feeling by taking the home from them and turning it over to an organization which might not be as sympathetic as the War Department has been in its treatment of these old soldiers. For these reasons it is recommended that the bill be amended to make it clear that the United States Soldiers' Home is not to be included in the reorganization proposed.

This bill (H. R. 16722) would go much further with regard to hospitals than the act of March 3, 1920 (43 Stat. L. 1212), which authorizes the President to transfer Army hospitals to the Veterans' Bureau, in that the former would probably permit of the transfer of Army personnel and "the whole or any part of the records and public property belonging thereto." It is not believed that this is intended for various reasons and it is thought that for purposes of clarity the bill should specify explicitly the activities which are to be included in the proposed agumented bureau.

In regard to the National Home for Disabled Volunteer Soldiers, the Secretary of War is charged by law with the duty of causing thorough inspection of the home, its records, disbursements, management, discipline, and condition, to be made annually by an officer of the Inspector General's Department, and transmitting the report thereon to Congress. He is also required by law to include, in the annual estimates of the War Department, estimate of the Board of Managers of the home. He is exofficio a member of the Board of Managers. That board, of which Gen. George H. Wood, Dayton, Ohio, is president, is elected by Congress. For these reasons no comment concerning this phase of the proposed legislation is made by me.

Should the committee desire to hold hearings on the bill, and obtain more detailed information regarding the probable effect of the bill, Maj. Gen. Merritt W. Ireland, the Surgeon General; Maj. Gen. William C. Rivers, the Inspector General; and Maj. Gen. Charles H. Bridges, The Adjutant General of the Army, are designated as witnesses to appear before your committee.

Sincerely yours,

DWIGHT F. DAVIS, Secretary of War.

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