Mr. BONNER. I just wanted it in the record, Mr. Chairman; that is all. The CHAIRMAN. I think it is well that it be there. All in favor of the motion say "aye." Opposed, "no." It is unanimous. Gentlemen, that concludes this hearing. (Whereupon, at 3:10 p. m., the hearing was concluded.) UNITED STATES EMPLOYEES' COMPENSATION COMMISSION, Hon. SCHUYLER O. BLAND, Chairman, Committee on the Merchant Marine and Fisheries, House of Representatives, Washington, D. C. DEAR JUDGE BLAND: You will recall that during the hearing on November 30, 1945, on the so-called seamen's bill of rights (H. R. 2346), you requested me to look over H. R. 1519, which is about to be reported by the committee, to see whether the bill would affect the right of War Department employees to compensation under the Employees' Compensation Act. The bill H. R. 1519 would amend section 2 (b) of the act of March 24, 1943, for the purpose of making it possible for the War Shipping Administration to extend, retrospectively, that insurance which is provided for under "SubtitleInsurance" of title II of the Merchant Marine Act of 1936. This insurance apparently is against war-risk hazards, and the object of the bill appears to give to civilian employees in the War Department who serve aboard vessels the same retrospective insurance coverage as has heretofore been extended officers and crew members on vessels owned by, or chartered to, the War Shipping Administration. The bill apparently would not directly affect the workmen's compensation rights of civilian employees of the War Department (employed on vessels or passengers on vessels) under the Employees' Compensation Act of September 7, 1916; however, the measure would have some indirect bearing upon such compensation rights, in view of the proviso beginning line, 10, page 2, of the committee's mimeographed print, namely: "That any money paid to any person by reason of insurance provided for under this subsection shall apply in pro tanto satisfaction of the claim of such person against the United States arising from the same loss or injury." Under this provision, presumably any insurance proceeds paid to a widow or other beneficiary, or to a disabled employee, would be in pro tanto satisfaction of the compensation provided for such case under the Employees' Compensation Act. It is noted that this insurance may be granted retrospectively "if the Administrator finds that such action is required to make equitable provision for loss or injury related to the war effort and not otherwise adequately provided for." The losses" covered by insurance are specified as "death, injury, detention, or other casualty," for which the War Shipping Administration would be authorized to provide insurance under "Substitle-Insurance" of title II of the 1936 Merchant Marine Act. Under the subtitle referred to, in respect to persons and property, the types of insurance which may be issued are those which arise from "risks of war"; and in respect to officers and crew members, the insurance may cover their personal effects and may be against "loss of life, personal injury, or detention by an enemy.' Therefore, under the bill H. R. 1519 insofar as the retrospective insurance would relate to death and injury (apparently the major casualties, as the only other risks specified are loss of personal effects and detention), it would appear that the Administrator would have to find that the issuance of retrospective insurance is required to make "equitable provision" for loss or injury not otherwise adequately provided for. And this would pose the immediate question whether employees of the War Department, and their dependents, particularly those employed by the Army Transport Service, to the extent that they are entitled to benefits under the Employees' Compensation Act, could be said not to be "otherwise adequately provided for." Moreover, since the insurance payable for disability or death under the bill would be in pro tanto satisfaction of the claim against the United States arising from the same loss or injury (presumably under the Employees' Compensation Act), the question next appearing would be whether the insurance in cases covered by the Compensation Act would be of any real benefit, since the proceeds of the insurance would be in pro tanto discharge of the compensation obligation of the United States. The net effect in such cases (particularly where insurance may be paid in a lump sum) would appear to be merely the acceleration of payment of benefits; that is, the widow or beneficiary presumably would receive a lump-sum payment of insurance proceeds which would have to serve in lieu of compensation until accrued compensation equals the amount of the lump-sum payment (the insurance proceeds). If the insurance proceeds should be quickly dissipated, a wait for benefits payable under the Compensation Act would result. The provision in section 2 (b) of the act of March 24, 1943, with reference to the granting of retrospective insurance to cover loss or injury related to the war effort, not otherwise adequately provided for, could be of more effective benefit in the cases of officers and crew members serving under the War Shipping Administration who were denied status as employees of the United States for the purpose of the Employees' Compensation Act by specific provision in the act of March 24, 1943. In other words, without such war-risk insurance protection-considering the statutory elimination of their compensation rights-obviously some protection was necessary because of the dangerous nature of their work; a limited kind of protection was given in the form of insurance for war-risk injury or death, retrospectively, through section 2 (b) of the act of March 24, 1943 (title 50 U. S. C. 1292 (b)). This same situation would not prevail with respect to employees who remained within the protection of the Employees' Compensation Act. Very truly yours, W. E. BOOTE, Chief Counsel APPENDIX BILL [H. R. 1519, 79th Cong., 1st sess.] A BILL Relating to marine insurance in the case of certain employees of the Army Transport Service who suffered death, injury, or other casualty prior to April 23, 1943, as a result of marine risks Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That effective as of March 24, 1943, section 2 (b) of the Act of March 24, 1943, entitled “An Act to amend and clarify certain provisions of law relating to functions of the War Shipping Administration, and for other purposes", is amended to read as follows: "(b) Whenever the Administrator, War Shipping Administration, finds that, on or after October 1, 1941, and before thirty days after the date of enactment of this subsection, a master, officer, or member of the crew of, or any persons transported on, a vessel owned by or chartered to the Maritime Commission or the War Shipping Administration or operated by, or for the account of, or at the direction or under the control of the Commission or the Administration, or operated by the Army Transport Service, has suffered death, injury, detention, or other casualty, for which the War Shipping Administration would be authorized to provide insurance under Subtitle-Insurance of title II of the Merchant Marine Act, 1936, as amended by this Act, the Administrator may declare that such death, injury, detention, or other casualty, shall be deemed and considered to be covered by such insurance at the time of the disaster or accident, if the Administrator finds that such action is required to make equitable provision for loss or injury related to the war effort and not otherwise adequately provided for: Provided, That in making provision for insurance under this subsection the Administrator shall not provide for payments in excess of those generally provided for in comparable cases under insurance hereafter furnished under the said SubtitleInsurance of title II, as amended: Provided further, That any money paid to any person by reason of insurance provided for under this subsection shall apply in pro tanto satisfaction of the claim of such person against the United States arising from the same loss or injury. The declarations, findings, and actions of or by the Administrator under this subsection shall be final and conclusive." [PUBLIC LAW 17—78th Congress] [CHAPTER 26-1ST SESSION] [H. R. 133] AN ACT To amend and clarify certain provisions of law relating to functions of the War Shipping Administration, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) officers and members of crews (hereinafter referred to as "seamen") employed on United States or foreign flag vessels as employees of the United States through the War Shipping Administration shall, with respect to (1) laws administered by the Public Health Service and the Social Security Act, as amended by subsection (b) (2) and (3) of this section; (2) death, injuries, illness, maintenance and cure, loss of effects, detention, or repatriation, or claims arising therefrom not covered by the foregoing clause (1); and (3) collection of wages and bonuses and making of allotments, have all of the rights, benefits, exemptions, privileges, and liabilities, under law applicable to citizens of the United States employed as seamen on privately owned and operated American vessels. Such seamen, because of the temporary warime character of their employment by the War Shipping Administration, shall not be considered as officers or employees of the United States for the purposes of the United States Employees Compensation Act, as amended; the Civil Service Retirement Act, as amended; the Act of Congress approved March 7, 1942 (Public Law 490, Seventy-seventh Congress); or the Act entitled "An Act to provide benefits for the injury, disability, death, or detention of employees of contractors with the United States and certain other persons or reimbursement therefor", approved December 2, 1942 (Public Law 784, Seventy-seventh Congress). Claims arising under clause (1) hereof shall be enforced in the same manner as such claims would be enforced if the seaman were employed on a privately owned and operated American vessel. Any claim referred to in clause (2) or (3) hereof shall, if administratively disallowed in whole or in part, be enforced pursuant to the provisions of the Suits in Admiralty Act, notwithstanding the vessel on which the seaman is employed is not a merchant vessel within the meaning of such Act. Any claim, right, or cause of action of or in respect of any such seaman accruing on or after October 1, 1941, and prior to the date of enactment of this section may be enforced, and upon the election of the seaman or his surviving dependent or beneficiary, or his legal representative to do so shall be governed, as if this section had been in effect when such claim, right, or cause of action accrued, such election to be made in accordance with rules and regulations prescribed by the Administrator, War Shipping Administration. Rights of any seaman under the Social Security Act, as amended by subsection (b) (2) and (3), and claims therefor shall be governed solely by the provisions of such Act, so amended. When used in this subsection the term "administratively disallowed" means a denial of a written claim in accordance with rules or regulations prescribed by the Administrator, War Shipping Administration. When used in this subsection the terms "War Shipping Administration” and “Administrator, War Shipping Administration" shall be deemed to include the United States Maritime Commission with respect to the period beginning October 1, 1941, and ending February 11, 1942, and the term "seaman" shall be deemed to include any seaman employed as an employee of the United States through the War Shipping Administration on vessels made available to or subchartered to other agencies or departments of the United States. (b) (1) Section 1426 of the Internal Revenue Code (53 Stat. 177, 1383; 26 U. S. C. 1426) is amended by adding at the end thereof the following new subsection: "(i) OFFICERS AND MEMBERS OF CREWS EMPLOYED BY WAR SHIPPING ADMINISTRATION. The term 'employment' shall include such service as is determined by the Administrator, War Shipping Administration, to be performed after September 30, 1941, and prior to the termination of title I of the First War Powers Act, 1941, on or in connection with any vessel by an officer or member of the crew as an employee of the United States employed through the War Shipping Administration, or, in respect of such service performed before February 11, 1942, the United States Maritime Commission. The term 'wages' means, with respect to service which constitutes employment by reason of this subsection, such amount of remuneration as is determined (subject to the provisions of this section) by the Administrator, War Shipping Administration, to be paid for such service. The Administrator and such agents as he may designate for the purpose are authorized and directed to comply with the provisions of the internal revenue laws on behalf of the United States as the employer of individuals whose service constitutes employment by reason of this subsection, but the Administrator and his agents shall not be liable for the tax on any employee imposed by section 1400 (unless the Administrator or his agent collects such tax from the employee) with respect to service performed before the date of enactment of this subsection which constitutes employment by reason of the enactment of this subsection." (2) Section 209 of the Social Security Act, as amended (U. S. C., title 42, sec. 409), is amended by adding at the end thereof the following new subsection: (0) (1) OFFICERS AND MEMBERS OF CREWS EMPLOYED BY WAR SHIPPING ADMINISTRATION.-The term 'employment' shall include such service as is determined by the Administrator, War Shipping Administration, to be performed after September 30, 1941, and prior to the termination of title I of the First War Powers Act, 1941, on or in connection with any vessel by an officer or member of the crew as an employee of the United States employed through the War Shipping Administration or, in respect of such service performed before February 11, 1942, the United States Maritime Commission. 66 (2) The Social Security Board shall not make determinations as to whether an individual has performed services which are employment by reason of this subsection, or the periods of such services, or the amounts of remuneration for such services, or the periods in which or for which such remuneration was paid, but shall accept the determinations with respect thereto of the Administrator, War Shipping Administration, and such agents as he may designate, as evidenced by returns filed by such Administrator as an employer pursuant to section 1426 (i) of the Internal Revenue Code and certifications made pursuant to this subsection. Such determinations shall be final and conclusive. "(3) The Administrator, War Shipping Administration, is authorized and directed, upon written request of the Social Security Board, to make certification to it with respect to any matter determinable for the Board by the War Shipping Administrator under this subsection, which the Board finds necessary in administering this title. "(4) This subsection shall be effective as of September 30, 1941." (3) Section 907 of the Social Security Act Amendments of 1939 is amended by inserting after the phrase "attaining age sixty-five," the following: "and 1 per centum of any wages paid him for services which constitute employment by virtue of subsection (o) of section 209 of the Social Security Act, as amended,". (c) The War Shipping Administration and its agents or persons acting on its behalf or for its account may, for convenience of administration, with the approval of the Administrator, make payments of any taxes, fees, charges, or exactions to the United States or its agencies. SEC. 2. (a) Section 222 (f) of Subtitle-Insurance of Title II of the Merchant Marine Act, 1936, as amended (Public Law 523, Seventy-seventh Congress), is amended by inserting before the period at the end thereof a semicolon and the following: "and, whenever the Commission shall insure any risks included under subsection (d) or (e) of this section, or under this subsection insofar as it concerns liabilities relating to the master, officers, and crews of such vessels or to other persons transported thereon, the insurance on such risks may include marine risks to the extent that the Commission determines to be necessary or advisable". (b) Whenever the Administrator, War Shipping Administration, finds that, on or after October 1, 1941, and before thirty days after the date of enactment of this subsection, a master, officer, or member of the crew of, or any persons transported on, a vessel owned by or chartered to the Maritime Commission or the War Shipping Administration or operated by, or for the account of, or at the direction or under the control of the Commission or the Administration, has suffered death, injury, detention, or other casualty, for which the War Shipping Administration would be authorized to provide insurance under Subtitle-insurance of Title II of the Merchant Marine Act, 1936, as amended by this Act, the Administrator may declare that such death, injury, detention, or other casualty, shall be deemed and considered to be covered by such insurance at the time of the disaster or accident, if the Administrator finds that such action is required to make equitable provision for loss or injury related to the war effort and not otherwise adequately provided for: Provided, That in making provision for insurance under this subsection the Administrator shall not provide for payments in excess of those generally provided for in comparable cases under insurance hereafter furnished under the said Subtitle Insurance of Title II, as amended: Provided further, That any money paid to any person by reason of insurance provided for under this subsection shall apply in pro tanto satisfaction of the claim of such person against the United States arising from the same loss or injury. The declarations, findings, and actions of or by the Administrator under this subsection shall be final and conclusive. SEC. 3. (a) The second proviso of section 1 of the Act of June 6, 1941 (Public Law 101, Seventy-seventh Congress), as amended, is hereby amended to read as follows: "Provided further, That such compensation hereunder, or advances on account thereof, shall be deposited with the Treasurer of the United States, and the fund so deposited shall be available for the payment of such compensation, and shall be subject to be applied to the payment of the amount of any valid claim by way of mortgage or maritime lien or attachment lien upon such vessel, or of any stipulation therefor in a court of the United States, or of any State, subsisting at the time of such requisition or taking of title or possession; the holder of any such claim may commence prior to June 30, 1943, or within six months after the first such deposit with the Treasurer and publication of notice thereof in the Federal Register, whichever date is later, and maintain in the United States district court from whose custody such vessel has been or may be taken or in whose territorial jurisdiction the vessel was lying at the time of requisition or taking of title or |