arrived there just at that time somebody would have been killed; possibly 98 people.

Mr. TABER. Do not these people have to bring in their products? Dr. DUNBAR. No, sir.

Mr. TABER. Before they put them on the market?

Dr. DUNBAR. No, sir; except in the case of new drugs. This is not a new drug.

Mr. TABER. Do you mean this had been made before by these same people?

Dr. DUNBAR. That is right. This is not a new drug.

Mr. O'NEAL. It was just a mistake in the factory filling the bottle? Dr. DUNBAR. But it might have meant 98 dead people if our inspector had not been on the job.

Mr. O'NEAL. You mean a solution that is generally on the market only under a different label?

Ďr. DUNBAR. Oh, yes. There are a great many manufacturers that put this product out, and most manufacturers are extremely careful. It is only the exceptional case where the manufacturer is as careless as this, but those are the ones that cause the damage and we have to be on watch for that.

Mr. LARRICK. In the case of this vitamin compound, it is injected into the vein. It is an intravenous injection.

Mr. TABER. We understand all that. The thing that I cannot understand is how a manufacturer would put out an article like that mislabeled.

Dr. DUNBAR. It is incredible, but those things happen, and it is probably due in part to the shortage of skilled labor during this period. They have had to take on all sorts of incompetent people Mr. TABER. The product was put up properly in the bottle but the wrong label was put on it?

Dr. DUNBAR. Probably so. That is our conjecture, that the bottles of this oil solution, this deadly material, were mixed in with some of the genuine articles and the wrong labels put on. Nevertheless there were 98 of these bottles that had potential dynamite in them.

BASIS FOR DETERMINATION OF APPROPRIATION

Mr. STEPHENS. A few minutes ago Mr. Taber intimated or said to Dr. Dunbar that he had enough in his appropriation to do this when you extend man-years over into the probable number of positions. That is just a bit confusing to me, if I got what you meant, because the actual appropriation is a multiplication of the man-years by the annual salary and not the positions. In other words, the money appropriated only provides for the man-years and not for the position.

Mr. TABER. But if you only used 775 man-years in the first half of the year, which would be about what the picture would be, you would still have a balance of 60 left, which would mean a 140 increase in positions staggered over the rest of the fiscal year. That would mean that you had a very large margin to operate with. Now, there is just not any other answer to that.

Mr. STEPHENS. I thought there might be some confusion.
Mr. TABER. I think that you were confused.

Dr. DUNBAR. I am not too good at mental arithmetic, Mr. Taber.

Mr. TABER. Well, 775 from 835 leaves 60. You are good enough for that.

Dr. DUNBAR. I think that I can follow that.

Mr. TABER. And if you have 60 man-years that means, on the basis of 6 months, 120. And 120 man-years for the last 6 months would mean 150 positions staggered in during the last half of the year. There is either some mistake in your figures here or else there has been a build-up in salaries or something else beyond the Classification Act to justify you in coming up here for a deficiency. I do not know what it is.

EQUIPMENT

Mr. O'NEAL. I did not ask you about the equipment item of $19,846. What is the purpose of that?

Dr. DUNBAR. That is merely to replace worn-out equipment which has run down considerably during the war, and also to buy new equipment if we increase personnel by the amount that we have estimated.

Mr. O'NEAL. That amount is somewhat dependent on whether or not this personnel is increased.

Dr. DUNBAR. Yes.

TRAVEL

Mr. O'NEAL. Now, there is a travel item here of $8,000, and that amount would be affected by the number of personnel. In addition to that the time that it takes this bill to pass will also affect the travel item, I presume.

Dr. DUNBAR. That is right. It is just a plain question of the mathematics, Mr. O'Neal. I would like to add this one more thing which may not be known to the committee. Every one of these cases that we get, like the one I showed you, calls eventually for a court trial. Those court trials are extremely expensive. We must send witnesses and maintain them at the place where the case is to be tried, and it may be in almost any part of the United States, and we must keep people there during the period of the trial. Some of the cases are terminated very promptly and some of them take a great while. That is another item which is almost indeterminable.

We finished a case some time ago in New York which ran 13 weeks, as I recall, and cost us something like $5,000 for witnesses alone. It was a complete fraud. The Government won the case. It involved a contraption which purported to cure all the diseases that man is heir to by subjecting them to colored lights of various kinds. That represents a tremendous cost in the operation of enforcing this law. Mr. O'NEAL. We thank you for your testimony.

CHARLES E. BURBRIDGE, ASSISTANT SUPERINTENDENT; AND M. A. STEPHENS, BUDGET OFFICER, FEDERAL SECURITY AGENCY

SALARIES AND EXPENSES

Mr. LUDLOW. Dr. Hall, you are superintendent of the Freedmen's Hospital?

Dr. HALL. Yes.

Mr. LUDLOW. How long have you been superintendent?
Dr. HALL. Since January 22, 1944.

Mr. LUDLOW. You have presented here an estimate in House Document 436 for an additional amount of $20,000 for salaries and expenses for the Freedmen's Hospital, 1946. There was previously appropriated, $796,750. That is exclusive of the cost of the pay law which is estimated at $253,300. This additional amount is all for personal services?

Dr. HALL. Yes.

Mr. LUDLOW. Will you give us a statement on it?

NEED FOR ADDITIONAL PERSONNEL

Dr. HALL. The additional amount of $20,500 that is being requested. represents what we feel to be the minimum amount necessary to employ such additional personnel as would be required to convert to the 40-hour week in areas where we have not already converted. We have already converted in every area where we can convert, and this simply represents that modest amount necessary to convert for those services that for the most part have to go 24 hours a day and where the division of people simply will not permit us to do it.

Mr. LUDLOW. This estimate of $20,000 is related to the 40-hour week?

Dr. HALL. Entirely.

Mr. LUDLOW. How many positions does the estimate contemplate? Dr. HALL. Forty-nine positions, or approximately 12 man-years for the remainder of the year.

Mr. LUDLOW. What employment starting date do you have in mind?

Dr. HALL. Say, for example, about a 3-month period, although there are certain areas where we would like to begin a bit earlier, but we have based this calculation on beginning, let us say, the 1st of April, and we would not exceed that amount.

Mr. LUDLOW. Is your 1947 budget built on the 40-hour week?
Dr. HALL. It is, sir.

Mr. LUDLOW. It calls for $921,000.

Dr. HALL. Yes.

Mr. LUDLOW. That is $129,000 less than you will have for the present year leaving out this supplemental estimate, but counting in the additional amount on account of the pay law. How do you explain that?

Dr. HALL. I think, of course, there is a saving in overtime, and if we convert to the 40-hour week those people will be paid on a straight salary basis whereas we were paying time and a half for the eight extra hours. That would account for part of the saving.

Mr. STEPHENS. I might explain there, that through the administrative budget process between our office and the Bureau of the Budget, they have to operate 24 hours a day, and on any kind of a 40-hour basis some of them have to go overtime and, of course, it costs about 50 percent more for a given hour when you pay overtime than if you get everybody on a straight-time basis. That accounts for the difference between this amount added to 1946 and the contemplated 1947 Budget.

FUNDS FROM NON-FEDERAL SOURCES

Mr. LUDLOW. How much have you used this year of funds from non-Federal sources?

Mr. BURBRIDGE. The amount of money we have in our budget from non-Federal sources comes from receipts from pay patients. It is distributed in the budget, worked into every account, and is reflected in our expenditure of money. In other words, in preparing the budget estimated pay patient receipts are a part of the total estimated cost of operation, then to come down to the appropriation we deduct these receipts.

For this year we have, through January of 1946, collected $93,489 which is at the rate of around $13,000 a month. That will bring in for the year approximately $160,000, which is the sum estimated in our present budget.

Mr. LUDLOW. The 1946 budget indicates $160,000 will be received from non-Federal sources during the present fiscal year.

Mr. BURBRIDGE. Yes; the 1946 budget.

Mr. LUDLOW. How much of such non-Federal funds are on hand now unobligated?

Mr. BURBRIDGE. None. As we collect them they are scheduled to our appropriation. As I said, they are already accounted for in our distribution of accounts. Therefore, unless we exceed the estimated amount, which is $160,000 for this fiscal period, we have nothing we can distribute for other purposes because it is already earmarked. Mr. LUDLOW. It is all absorbed in the $160,000?

Mr. BURBRIDGE. Yes.

PATIENT LOAD

Mr. LUDLOW. Has the patient load remained rather constant, or has there been an appreciable fluctuation?

Mr. BURBRIDGE. Our patient load has remained just about constant. We have not had a great increase in patient load. We could say that it is comparable to last year.

TYPE OF POSITIONS NEEDED

Mr. WIGGLESWORTH. What kind of positions are these that you are asking for administrative, medical, or what?

Dr. HALL. The positions that we are asking for are in the nursing department, the dietary department, and administrative department, but I might explain in the administrative department we are simply

asking for a telephone operator and one admitting clerk; both of these services operate 24 hours a day.

Regarding the matériel services, that is the guards and the domestic help and the attendants, we only have guards for 16 hours a day. We need one additional guard in order to cover that service for 24 hours a day.

Mr. WIGGLESWORTH. You have laundry workers and domestic attendants and waiters. Those are not on a 24-hour basis?

Mr. BURBRIDGE. No, sir, that is correct; but we were working with the minimum number with which we could operate under the 48-hour week, and the additional personnel are the extra people that will be necessary to convert to the 40-hour week. Of course, present personnel are getting overtime which would be eliminated by converting to the 40-hour week.

Mr. WIGGLESWORTH. Your waiters and guards and so forth aren't getting overtime now, are they?

Mr. BURBRIDGE. They are getting overtime.

Mr. WIGGLESWORTH. Why?

Mr. BURBRIDGE. Because we cannot effect coverage any other way. We have eight buildings at Freedmen's Hospital and three guards. We have anywhere from 10 to 15 entrances. We feel that even with one additional guard we have inadequate service.

EXPENDITURES IN FIRST HALF OF FISCAL YEAR

Mr. WIGGLESWORTH. I understand that you had $796,750 previously in your appropriation.

Mr. BURBRIDGE. That is right.

Mr. WIGGLEWSORTH. How much of that have you spent during the first 6 months or the first 7 months?

Mr. BURBRIDGE. I can give you the actual expenditures-$592,784. Mr. WIGGLESWORTH. For 7 months?

Mr. BURBRIDGE. Yes.

Mr. TABER. Does that include all of your pay roll through the 31st of January?

Mr. BURBRIDGE. Yes; through the 31st of January.

Mr. HARE. What was your estimate for 1946 for non-Federal funds?

Mr. BURBRIDGE. $160,00 .

Mr. HARE. That was your estimate for 1946?

Mr. BURBRIDGE. Yes.

Mr. HARE. And so far you have succeeded in collecting $93,000? Mr. BURBRIDGE. Yer.

Mr. HARE. Do you think that the income for the remaining 5 months will be comparable to the last 7 months?

Mr. BURBRIDGE. Yes; we have every reason to believe that.

NUMBER OF NEW EMPLOYEES NEEDED

Mr. HARE. How many additional employees will you need for the remainder of this fiscal year? You have 111⁄2 man-years for 48 employees.

Mr. BURBRIDGE. Yes.