Evening star., 1947-11-23
Martin, Brophy Assai|
VA Delay in Repaying
z Billion on Premiums
By GEORGE Beveridqe

House Speaker Martin and Repre-
sentative Brophy, Republican, of
Wisconsin strongly criticized the
Veterans Administrator last night
for what they said were undue delays
in returning to veterans about
81 900 100000 worth of "overcharged
insurance premium payments"
, VA said as long as year ago that
it would issue the "overcharged pay
ments" in the form of dividends to
current and former policy holders
Of National Service Life Insurance
The payments would be made from
$1,000, 100000 fund, swelled to huge
proportions because death claims on
the fund have been far below ex-
pectations at the time the premium
rates were set.
VA officials estimate that nearly
all of the more than 100000 World
War II veterans who have partici-
pated in the program will be eligible
for some dividend payment under
the plan.
Both Would Favor Probe.
Both Mr. Martin and Mr.. Brophy
indicated they would favor a con-
gressional investigation into the VA
insurance setup. Their criticism
came just a month after blast
from the House Veterans Affairs
Committee which branded the often
criticized insurance program as in
efficient and inadequate"
The Veterans Administration
came up with an immediate answer
last night that while additional per-
sonnel are needed to devote all their
time to the dividend payment, other
factors also make it impossible" to
get the dividends out at the present
time.
Harold W. Breining, chief of the
insurance division, has said his per-
sonnel already is short because of
personnel ceilings set by Congress.
The dividend payments, he added,
require check on each of the 49,
100000 GI policies that have been
issued.
Officials explained that the
dividend payments must be deter
mined according to the face value
of each policy, the time it has been
in force and the age of the in
sured
Court Decision Awaited.
Principal reason for the delay,
however, they said, is that VA must
await Supreme Court decision on
a Federal Court ruling in Chicago
which could wipe out completely the
insurance reserve fund The ruling
involves g plan under which VA
sets rates low enough to make
monthly payments for the lifetime
of beneficiary. The rates are
based on the age of the beneficiary.
1t guarantees 120 of the monthly
payments in case the beneficiary
should die within 10 years.
The unusual court ruling, how
ever, said that the full face value
of each policy under the plan should
be paid within 10 years, and that
if the benedciaries live beyond that
time the payments should continue
at the same rate for life.
Conceivably, the VA said. youthful
beneficiaries would be able to COL
lect four or five times the face value
OF G1 policies if the ruling is up
held. Such situation, they added.
could rule out the possibility of any
dividend payment.
The Justice Department has asked
the Supreme Court for a final de-
clSlon on the case.
Martin Issues Statement.
The insurance program, which
has drawn protests to the White
House as well, will be one of the
first and largest headaches in pros
pect for Carl R. Gray, newly ap-
pointed Veterans Administrator,
who will take over the agency
January l. Mr.. Martin said in his
statement that he will press lin
every way possible, to see to it
that the money is returned to the
veterans at the earliest possible
date"
Such a huge fund" he con-
inued. should never have been
allowed to float around the Veterans
Administration. because any sucn
accumulation of money as this is a
standing invitation to careless GUS
tody if not something more serious "
| Mr.. Brophy said he has asked the
agency for full details about the
huge fund and the payment of
dividends.
The answer I receive will de-