The opinion of the court was delivered by: BURNS
1. Clyde A. Barnes, the insured, was born on August 31, 1923, the son of Clyde E. Warner, a defendant herein. The name of the insured at birth was Clyde Warner, Jr.
2. When Clyde A. Barnes was about one year old, he was placed in the custody of Stephen E. and Martha Barnes, with whom he lived thereafter. On July 20, 1942, the insured was formally adopted by said Martha Barnes. The adoption decree recited 'that said child has been abandoned by his father', the 'father' being a reference to defendant Clyde E. Warner. Stephen E. Barnes had died in 1936.
Plaintiff, Alice Mae Barnes, was born on September 2, 1920, her name at birth being Olga Kavanna. Martha Barnes also formally adopted plaintiff, the date of said adoption being October 11, 1943, at which time plaintiff assumed the name of Alice Mae Barnes.
4. The insured, Clyde A. Barnes, entered the United States Army in the latter part of November, 1943. On November 29, 1943, the insured applied for and was granted a $ 10,000.00 policy of National Service Life Insurance, identified by Certificate No. N-14,764,737.
5. In said policy, the insured designated his adopted mother, Martha Barnes, as the principal beneficiary, and his adopted sister, Alice Mae Barnes, as contingent beneficiary.
6. The insured paid premiums on the aforementioned policy up to and including the month of April, 1945, the month of his death. The insurance policy was in full force and effect when he died.
7. The adopted mother, Martha Barnes, died on February 24, 1945, when the insured was still alive.
8. The insured was killed in action in Germany on April 4, 1945.
9. On July 23 of the same year, plaintiff filed a claim for payment of the aforementioned insurance. In support thereof, she filed a certified copy of the record of her birth and other papers.
10. On September 6, 1945, the Veterans Administration notified plaintiff that her claim for the insurance proceeds was disallowed. The reason given for this decision was that the law required beneficiaries to be 'at least of the half blood'.
12. Similarly, payments totaling $ 1,333.52 were made to defendant Pearl A. Hinkle, natural sister of the insured, and $ 836.60 to defendant Robert E. Sheck as guardian for Mae Viola Warner, also a natural sister of the insured. All such payments were made subsequent to the date when plaintiff filed her formal claim for the proceeds of the insurance.
13. During the year of 1949, plaintiff, through the Department of Veterans Affairs, requested reconsideration of the 1946 decision. Her application was denied, because the time for appeal had expired. The Veterans Administration noted that plaintiff could 'file suit in the appropriate United States District Court at any time within the period provided by the statute of limitations'.
14. Defendant Clyde E. Warner has filed a cross-claim, in which he has demanded the remainder of the insurance proceeds from the United States of America. The United States of America has interpleaded the aforementioned defendant Clyde E. Warner, and also defendant K. V. Nicola as the guardian of the natural mother of the insured, defendant Robert E. Sheck as the guardian of Mae Viola Warner, and defendant Pearl A. Hinkle. The United States of America has ...