Pension Beginnings

The U. S. Government last week abandoned the 1917 policy of compensating only World War veterans disabled in military service and prepared to make a large and significant shift to a pension system of the sort that has followed every other war. This fundamental change was accompanied by a thumping veto from President Hoover and much wild and excited legislative scrambling, with the Senate in open defiance of the President and the House-- bowing to his will.

Compensation Plan. When the U. S. entered the War, President Wilson inaugurated the war risk insurance system as a means of avoiding the kind of pension payments which were such a scandal after the Civil War. In 1919 was inaugurated the system of compensating those actually disabled in War service. Veterans' organizations proudly disapproved of any pension system and the whole structure of governmental aid was built away from that old practice. On the theory that they would never be pensioned, veterans demanded and received from Congress a Bonus which was called "adjusted compensation." The word "pension" was in disrepute.

As time passed veterans began to fall ill from disabilities really contracted in War service. The compensation laws were constantly revised and relaxed to include them in Federal aid. Soon developed cases of men whose service disability was questionable. Congress thereupon declared that any veteran taken ill before 1925 should be presumed to have contracted his disability from the War seven years before. Despite this legal stretching, the system remained one of compensation and not of pension.

Pension Demand. After 1925, War veterans became disabled and destitute in civil life but could receive no aid from the Government because the period of presumption had run against them. As their numbers grew, politicians became interested in them. Demand for an oldfashioned pension system which would care for these disabled in civil as well as military life arose. Last April the House in a reckless mood passed a bill to advance the date of presumption of World War disability to Jan. 1, 1930 (TIME, May 5). Fortnight ago the Senate passed (66-to-6) the same bill over the protests of President Hoover, Secretary Mellon and General Hines, director of the Veterans' Bureau. Theoretically the measure was still a compensation for War disability; practically it was a headlong plunge to pensions for veterans disabled in civil life. Under it a veteran stricken with gout on Dec. 31, 1929 would be compensated equally with a soldier who lost his legs in the first week of fighting. In the debate Senator Reed of Pennsylvania, an A. E. F. veteran who opposed the Bonus, boldly declared that he was ready now to shift the whole governmental aid policy to a pension basis.

Senator Watson, the Republican leader, sweated long but in vain to induce the Senate to accept President Hoover's views. He found he was dealing with politicians whose minds were riveted on the soldier vote in their States this year. Frank was his statement: "I know the Senate will not adjourn until this bill is passed and you could not drive the House out of Washington until it provides pension legislation."

"Just Bad Legislation." President Hoover was thoroughly aroused against the pension measure. His objection was not so much to the shift from compensation to pensions as it was to the discriminating way in which Congress proposed the change. His displeasure was unmasked when at a press conference he denounced the measure as "just bad legislation."

Taxpayers v. Soldiers. With a veto certain. Speaker Longworth began to scurry about the House corridors lining up Republican votes to sustain it. Said he to one and all: "There are more taxpayers than soldiers.'' Representative Johnson, chairman of the House Veterans' Committee, hastily whipped together a substitute pension bill which Speaker Longworth said would be passed "within an hour." Declared the House Republican leaders jointly: "There will be no adjournment of the Congress until final enactment of veterans' legislation."

"Repugnant Task." Next day President Hoover returned the first pension bill to the House without his approval. Said he in his veto message:

"One of the most repugnant tasks is to disapprove measures intended to benefit our sick and disabled men. . . . But I want a square deal between veterans--not unjust discriminations between special groups, and I do not want wasteful or unnecessary expenditures. . . . This measure is a radical departure . . . into the field of pension to men who have incurred disabilities . . . having no valid relation to their military service. . . . The legal 'presumption' [of War disability up to 1930] is not a physical possibility and constitutes a wholly false and fictitious basis for legislation in veterans' aid.

"The spectacle of the Government practicing subterfuge to say that what did not happen in the War did happen in the War impairs the integrity of the Government and undermines the morale of all the people.

"The first [injustice of this bill] is to place men disabled in civil life since the War upon the same basis as the men who were wounded in battle and suffered the exposures of the trenches. . . . There is no provision in this bill against men of independent means claiming benefits from the Government for disabilities arising from civil life. . . . This bill contemplates compensation of some misconduct disabilities [venereal diseases] the whole conception of which must be repugnant to decent family life. . . . The bill in a wasteful and extravagant manner goes far beyond the financial necessities of the situation . . . will cost $110,000,000 the first year . . . increase to $235,000,000. . . . These costs are beyond the capacity of the Government without increased taxation. . . .

"Even if I were able to overlook these burdens, for monetary considerations are indeed secondary, I cannot overlook the discriminations and injustices which this legislation creates, together with its failure to meet the real need that exists today among our veterans in a fundamental and sound manner."

Veto Sustained. Without a moment's hesitation the House sustained (188-to-182) the President's veto and just 40 minutes later passed (365-10-4) and sent to the Senate a substitute pension bill which it knew President Hoover would approve.

New Bill. This new measure was in principle the same as the vetoed one, except on a smaller scale. Its first year cost would be $50,000,000 instead of $110,000,000. Its top pension to a veteran totally disabled in civil life would be $40 per month, as compared with $200 paid as compensation to a veteran totally disabled by the War. The period-of-presumption idea was done away with entirely, the Government pensioning War veterans frankly on their civil disability. A veteran would have to be 25% disabled to begin drawing the minimum pension ($12 per month). Any disease or ailment would make a veteran eligible for a pension.

When the Senate received the House bill, its Finance Committee summoned General Hines, who approved the measure with the inference that President Hoover would do likewise. But at the risk of incurring another veto Democratic Senators began to agitate for an increase in the maximum pension rate to $60 with proportionate increases down the scale which would double the initial expense of the whole legislation.

This file is automatically generated by a robot program, so reader's discretion is required.