Evening star., 1947-12-05
Top VA Officials Face
Hearing Wednesday
On Insurance Setup
By George Beveridqe

war II veterans insurance program
are expected to flare again Wednes-
day, when top officials of the Vet
erans' Administration will be called
to account by the House Veterans
Affairs Committee, it was learned
today.
Chairman Edith Nourse Rogers
said members have voted to call
Oner w. Clark, acting VA head, and
Harold W. Breining. the VA insur-
ance chief, along with other officials,
to-testify at the hearing-the COM
mittee's first during the special
session.
The special action was taken, Mrs.
Rogers said, because the oficials
failed to answer a committee report
sent to VA six weeks ago, which
charged the insurance program with
being inefficient and inadequate" !"
1t also urged "a change OF top
personnel"
Since then, the Massachusetts,
Representative said, the committee
has recommended that Mr.. Breining
be. relieved of direction of the huge,
sprawling program and be made an
adviser to a new supervisor.
Truman Asked to Intervene.
Mrs. Rogers said she thinks the
insurance mixup is so serious that
she has asked President Truman to
take a hand in the situation.
There has been no reply yet
from the White House" she said.
The committee report gained
added support two weeks ago, when
House Speaker Martin and Repre-
sentative Brophy, Republican, of
Wisconsin, added blistering criticism
of the program. They hit principally
at what they said were undue de-
lays" in payment OF dividends to
holders of National Service Life
Insurance policies.
Another phase of the veterans
insurance picture which may bios
som into a controversy is the ques-
ton of extending beyond December
81 the period in which veterans may
reinstate lapsed CT insurance
policies without taking physical
examinations.
Since early this year, former serv-
ieemen have been able to put back
into force policies they had dropped
merely by stating that their health
Is as good as it was when the policies
lapsed and by paying two months
premiums. Deadline for the SIM
plified reinstatement program first
was set for August, then extended
to December 81.
New Extension Proposed.
Asked about the deadline, Mrs
Rogers said 1t should be extended
again.
Congress has given the Veterans
Administration power to extend the
headlines, however, and VA officials
declare they definitely will not
grant the extension beyond the first
of the year. If the extension is
made, they said, it will have to be
done through congressional action
Since last February. VA records
show, a little more than 100000
veterans have reinstated their poll
cies. The program-through which
more than 100000 policies have
been issued-now has only about
100000 policies in force. About
100000 of these are the ordinary
term policies.
Insurance, more and more Is
looming as the No. l problem that
will face Carl r. Gray, jr., when
the railroad executive comes to
Washington January to take over
direction of VA.
Short Cuts Proposed.
The Veterans Committee report
said there is a need to bring short
cut methods used in the commercial
insurance business into the VA
program for IAN entirely new pre-
MUM billing and accounting sys-
tenn"
Mr.. Breining has told reporters
that, while some insurance records
have not yet been located, 95 pei
cent of the current policy holders
are getting good service" in pre-
MUM billing, receipting and &C
counting procedures.
Meanwhile, Mrs. Rogers said g
special subcommittee which visited
number of veterans hospitals
during the congressional recess
have reported the VA hospital pro-
gram is very much better than Il
was last year
The committee will open othel
hearings on December 1S on vet
erans' housing legislation. the chair
man said.