Evening star., 1925-02-05
VETERANS PROTEST
BONUS DEDUCTIONS
Debts Owed Government Are
Being Cut From Amount of
Service Credits.

Sharp difference of opinion has
broken out over the action of the
Veterans Bureau in deducting from
the service credit of his World War
bonus the amount owed by a veteran
to the Government.
This action, taken under authority
of Controller General j. r. McCarl,
reduces the figures on the face OF
the adjusted compensation certificate
by the amount of the claim of the
Government against the veteran. 1t
has been characterized by some vet
Grams as unwarranted and as taking
two and half times the amount
due.
on the other hand, the Governn ent
contends some of the claims against
veterans have run for years. at no
interest rate whatever in spite of
many attempts to collect. Under the
law Controller General McCarl holds
that the claim should be deducted
from the service credit and not from
the ultimate cash value of the bonus
at maturity.
Point Is illustrated.
Veterans in contending that by
this action the Government is taking
about two and a half times what is
due. illustrated their stand this way:
\ veteran entitled to the maximum
credit of $625 would receive an ad-
iusted compensation certificate worth
at maturity, on account OF the IN
terest compounded, about $3.50. Ii
he owes the Government 500 TINS
sum is deducted from the credit
value of the bonus before the GER
rificate is issued, thus cutting down
the figures on the certificate to $525
and the eventual value to only about
S1213.
The Veterans Bureau is carrying
out the regulations laid down by
Controller General McCarl in a deci-
sion which held that fundamentally
the World War adjusted compensa-
tion act authorized the creditlng to
the veterans of only those amounts due
over and above advances made.
Holds Deduction Legal.
The foregoing is fundamental"
declares the controllers decision,
Notwithstanding what appear to be
conflicting details found in the act
OF May 10. 1924. preponderance of
authority being in support thereof
aside from the rules of construction
requiring the doing of that which
is possible and practicable.
In those cases where a veteran
would except for his indebtedness,
be entitled to adjusted service credit
Indebtedness should be deducted
therefrom, and an adjusted service
certificate issued on account of the
balance to his credit, If in excess
of $50; but if such balance is for
$50 or less, payment thereof may
be accomplished as though the total
was for only $50 or less, same having
been reduced because of advances
to the veteran. Similar action should
be taken in cases where the veteran
is entitled to adjusted service pay
in the sum of $50 or less, as to
which no question is raised"
Amounts due the United States by
dependents of veterans or benefi
Charles, it was ruled by the controller
general, will also be subject to such
"set-off"
Following a proposal of the con-
trolier general, said by him to be
"advisabIe," the Veterans Bureau,
however, is delaying action on each
case where deductions are to be made
until the veteran may again be noti-
fed of the claim of the Government.
When such claims are discovered, it
was explained, a letter is written to
the veteran and an opportunity given
him to pay off his debt. Many veter-
ans, it was explained today, are TAX
in gadvantage of this opportunity to
benefit by the maximum provisions
of the bonus compounded interest
feature, and are replying to the Vet
erans' Bureau with checks paying
off the total amount of their debt to
the Government. This will leave
their adjusted service credit at it's
maximum