Evening star., 1933-05-16
VETERANS SLASHES
TWILL Be TESTED IN
IL. S. CLAIMS COURT
Repudiation of "Contracts"
| Made in War Charged
| by Complainant.
$4,000 INSURANCEPO
FULL PAYMENT is ASKED
Action Is Filed on Behalf of Es-
tates of Texas Resident and Son,
insured Ex-Service Man.

A test case to determine whether
Congress in the economy act has re-
pudiated in time Of peace contracts"
which it made with its soldiers in time
OF war has been filed in the United
States Court Of Claims by William
Wolff Smith, former general counsel of
the Veterans Administration, in behalf
OF r. A. Mclean Of Dallas, Tex, ad-
ministrator of the estates Of Eldridge
Anderson an insured veteran, and
Charlie Ford Anderson. his father and
the beneficiary Of his Government war
risk insurance policy.
In the petition 1t Is set out that
the Veterans Administration because
Of the economy act has refused to pay
the insurance. as it was yearly re-
newable term insurance" Converted
insurance policies are not involved in
the matter
The Court Of Claims is asked to
estate Of the 1000 insurance policy
in full, as 1t was in effect at the time
Of the veterans death.
Thousands Of Claims Dropped.
Thousands Of similar claims which
had been pending when the economy
act was passed are understood now to
have been dropped by the Veterans
Administration because Of the economy
act.
The petition In the test case points
out that the soldier in question was dis
charged from the Army August /. 1919,
a hospital and died October %, 1919.
at Cooper. Tex. 1t is further alleged
that the Veterans Administration had
found the veteran, Anderson, to have
become totally ana permanently dis
abled from disabilities due to his mill
tary service. beginning with August 25,
1919, at which time his insurance policy
was in force by reason Of the payment
Of premiums.
Maj. Smith said that except for the
passage Of the economy act there is
no doubt that this claim for $4,000
insurance would have been paid by the
Veterans Administration. as we all
seem to be in accord that the veteran
and his beneficiary were entitled to
the insurance, but 1t is one of the
$4,000 claims which were pending in
the administration when all action on
such claims was suspended. The Vet
erans' Administration has taken the
position that no matter how meritorious
a claim may be 1t cannot now allow
and pay same and that the economy
act closed the doors Of all courts to
such claimants.
Over 5000 Meritorious.
"Of the u.s. 900 claims pending when
the bar fell, according to the Veterans
Administration, It Is conservatively es-
timated that from 5000 to 5000 claims
were unquestionably meritorious, in
Guiding those Of many beneficiaries
where the veteran died in the service
or, ike Anderson, after leaving the
service but while his policy was In
force through the payment of pre-
miuMs. Under conditions existing prior
to March 20. 1888, these claims would
have been paid by the Veterans Ad-
ministration or under a Judgment of a
court.
Bearing in mind that these men
not only served their country in time
Of war. but out of their scanty pay, in
addition to making allowances to their
families and buying Liberty bonds, paid
premiums for their insurance under a
contract with the Government which
they were defending, it is unthinkable
that Congress deliberately intended to
0CAy LlcIu u IlSut 10 nave tQeir claims
heard and adjudicated by the courts,
which are open to every other indi-
vidual. partnership or corporation con-
tracing with the United States.
Opened Claims Court Doors.
ut is therefore our belief that if
and when Congress closed the doors
Of the courts previously open to such
veterans, as the Veterans Admins
tration holds 1t did, it at the same
time opened the doors of the Court
OF Claims which has Jurisdiction over
suits against the United States found
ed upon any contract, express or i'm
piled, with the Government of the
United States
I'VE therefore chose this case, con-
corning the merits Of which there can
be no dispute. to give the Veterans
Administration the opportunity, if it
so desires, to test the jurisdiction Of
the Court Of Claims, and to deter
mine the question of whether Congress
intended to, and did repudiate in time
Of peace the obligations of the United
States on contracts which it made with
its soldiers in time of war. Such &C
ton would be unconscionable. and we
do not believe that Congress intended
to or actually did put the Government
in such a position"