◆ SpookStack

DIRECTOR - 3 JOHN EDGAR HOOVER ~ se . Digision of Inbestigation ¢ M.S. Bepartment of Justice Bashington, B.C. YDL: 50 June 21, 1934 MEMORANDUM FOR MR. cD With further reference to my pemorandum of June 6, 1934, concerning the additional number'/of War Risk Insurance cases which the Divigion will be re hred to le because of the United States Supreme Court fectats the case of Lynch versus United States which held the\National Econony Act of March 20, 1933, invalid, I called upon Mr. H. H. Milks, Chief of the Insurance Claims Council of the Veterans Admini- stration and discussed the effect of this decision with him. He stated that on March 20, 1933, there were 23,000 clains for permanent and total disability benefits under War Risk In- surance policies pending in the Veterans Administration. From past experience he estimated that from fifteen to eighteen per cent of these claims would be allowed. To state it differently, letters of disagreement will probably be sent out in from eighty- two to eighty-five per cent of the cases. As to the rapidity with which the Insurance Council can consider these claims, Mr. Milks stated that from 1,000 to 1,200 per month will be dis- posed of. However, he called attention to the Veterans Admini- stration regulation which prohibits the Insurance Claims Council from taking any action on the cases affected by the Supreme \ Court decision until such time as the President by proper order directs the Claima Council to begin consideration of the aaa | He expected that this would be done in the near future. In order to obtain an estimate of the number of cases arising out of the 23,000 claims mentioned above which will actu- ally end in suit, I called Colonel Arnold who is the Chief of the Field Division of the Veterans Administration. He said that if the courts hold that with the passing by Congress of the Act of \I March 20, 1933, operation of the Statute of Limitations was sus— pended until the Supreme Court held the Act unconstitutional, then he would say that between 8,000 and 10,000 suits can be expected. On the other hand, if the National Economy Act z held T= to affect oe aNTT PR 1 ae *. y, . . J “ wee _— _~ f Aes % | |