EXPENDITURES AND OBLIGATIONS Mr. TABER. How much money have you spent out of this appropriation? Dr. KRATZ. The amount for foreign quarantine? Mr. TABER. That is the one that I am asking about. Dr. KRATZ. Of the amount for the Philippine Islands? Mr. TABER. The amount out of this $1,000,000. You have $1,803,000, or something like that, do you not? Dr. KRATZ. The $1,000,000 appropriation is not administered by the Quarantine Division. Mr. TABER. You have $1,574,000 for foreign quarantine. Dr. KRATZ. Yes; including the $320,000 deficiency. Mr. WIGGLESWORTH. What was the other for? Dr. KRATZ. The Division of States Relations administering that amount Mr. WIGGLESWORTH. What was the $1,574,000 for? Dr. KRATZ. For maintenance and operation of quarantine stations in the United States and the resumption of quarantine and immigration activities in foreign countries. Mr. TABER. You did not get any quarantine appropriation in the regular bill? Dr. KRATZ. Yes, sir; $1,254,000. Mr. TABER. That is all that you got? Dr. KRATZ. Yes; in the regular appropriation. Mr. TABER. You got for Foreign Quarantine Service altogether $1,574,000? Dr. KRATZ. That was the original appropriation of $1,254,000 plus $320,000 in the first deficiency. Mr. TABER. That is the way that the bill was passed? Dr. KRATZ. Yes. Mr. TABER. You are getting away from the story. You have had altogether for this quarantine service $1,574,000 already, have you not? Dr. KRATZ. For the fiscal year 1946? Mr. TABER. Yes. Dr. KRATZ. Yes. Mr. TABER. And you have $232,700 pending for Public Law 106. Dr. KRATZ. Pending for Public Law 106; yes. Mr. TABER. That makes $1,806,700. Of that, how much have you already spent? Dr. KRATZ. All of it has been obligated. Mr. TABER. I am trying to find out how much has been spent. Dr. KRATZ. I do not know of that exact figure, sir, but I can get it. Mr. TABER. How can you tell anything about it without it? Dr. KRATZ. We were very much in the red; otherwise we would not have asked for the deficiency. Mr. TABER. How could you get a deficiency out of the Budget without giving them that information? Dr. KRATZ. For the very reason we were establishing the European Service which we had not anticipated in the 1946 budget. It was only at the termination of the war. Mr. TABER. I know. Do they never find out anything about the status of your appropriation before they give you a deficiency? I just do not understand people coming up here without knowing about that. 83715-46-3 Dr. KRATZ. The reason that I have not kept up with all of the details of that is because I am Acting Chief of the Division. Dr. Dunnahoo is now in Europe and he is the one who usually handles the budget hearings. Mr. TABER. When you come up here for a thing like this, that is the simplest question in the world for anybody to ask you, and if you do not know that, I do not see how you could administer your appropriation from day to day. I would not want to tackle the job. Do you actually mean over there you do not know what your cash balance is from day to day? Dr. KRATZ. We know to the penny, sir. Mr. TABER. How could you expect to come up here and get a deficiency without knowing? Dr. KRATZ. The deficiency appropriation Mr. TABER. When you get up here. Dr. KRATZ. The deficiency appropriation asked for here is purely for the Philippine Islands. The amount that has been justified before on the $605,000 had already been approved which had been justified before. We are asking here for a deficiency of a deficiency which had been approved by the Bureau of the Budget. Mr. TABER. You had a deficiency of $605,000 before on that particular item, did you not, included in this $1,574,000. Dr. KRATZ. No, sir. Mr. TABER. Is that a separate appropriation? QUARANTINE PROCEDURES IN THE PHILIPPINE ISLANDS Dr. KRATZ. It is new money altogether. The deficiency for the Division was $335,000. The $270,000 asked for was purely for restoring quarantine procedures in the Philippine Islands. Mr. TABER. What is this $225,000 that you are asking us for now? Dr. KRATZ. The amount of money that is required at the request of Governor McNutt to restore the original request of $270,000 which they absolutely need to set up temporary structures for quarantine facilities in the Philippine Islands. Mr. WIGGLESWORTH. On what basis? Is it just a wild guess by Governor McNutt, or do you have anything to found it on? Dr. KRATZ. On the basis of the previous quarantine stations which were set up prior to enemy action and the action of our own forces. Mr. WIGGLESWORTH. That does not mean a thing to me as a member of this committee. It may mean something to you. I would like to have some facts and figures here so that I can reach a conclusion as to whether this estimate is fairly arrived at or not. Dr. KRATZ. May I review the justification as set up for the $605,000 which was previously submitted at the first deficiency hearing? Mr. TABER. When was that? That was in the Senate. Dr. KRATZ. Yes. Mr. LUDLOW. I think what we want is the clarification of why you need this $225,000. If you could make that clear to us that would help appreciably, I think. Dr. KRATZ. An item of $270,000 for rehabilitation of the Philippine Quarantine Service was included in the first deficiency estimate of $605,000 submitted by the Foreign Quarantine Division. The Congress approved a deficiency of $320,000 which was barely sufficient to meet the needs of the Quarantine Service in the continental United States, Europe, and Honolulu. It was possible to allow only $50,000 for use in the Philippine Islands and, consequently, the High Commissioner made the following request Mr. WIGGLESWORTH. The House gave you $70,000 to take care of your general service. Then you went over to the Senate with an estimate of $605,000 and you were finally given $320,000 altogether; $270,000 out of this $605,000 budget. That is the story, is it not? Dr. KRATZ. $320,000, yes. Mr. TABER. Which was a $250,000 increase over what the House allowed. Dr. KRATZ. We got $320,000, sir. Mr. TABER. And you allocated how much of that? Dr. KRATZ. $50,000 to the Philippine Islands. Mr. TABER. Your deficiency for the rest of the country was $50,000? Dr. KRATZ. $335,000. Mr. TABER. It was $70,000 the way that it went through the House. That is the way that we allowed it, and then you went over to the Senate and they put in $270,000 for the Philippine Islands and then you allowed $50,000 for the Philippine Islands out of that and took the rest for yourself; is that it? Is that not the story? I want to know if that is not right. Dr. KRATZ. Not exactly the way that I see it. Mr. TABER. How do you see it? Dr. KRATZ. I see the entire amount requested was $605,000 of which the $335,000 was required for the Foreign Quarantine Service in the continental United States; $270,000 required for the Philippine Islands, which made a total of $605,000. Mr. WIGGLESWORTH. Did you make that presentation before? Mr. WIGGLESWORTH. And it was turned down, was it not? The Congress decided to give you only $320,000. Dr. KRATZ. Yes. Mr. WIGGLESWORTH. So what Mr. Taber says is substantially true, is it not? We gave you $320,000 and you allocated the whole of that except $50,000 for purposes other than the Philippine Islands. Dr. KRATZ. We allotted it for the purposes requested, namely, for personnel for Coast Guard replacements, for 40-hour week personnel and for European personnel, supplies, and equipment. Mr. WIGGLESWORTH. Now you are coming back here and you want us to make up the difference to the Philippine Islands, or in other words, grant the original request that the Congress turned down when you made it before. Dr. KRATZ. Yes. Mr. LUDLOW. What is the essentiality of this $225,000? I would like to get a clear picture of why you need that money. Dr. KRATZ. At the present time there are no facilities for the Quarantine Division to carry out its legal requirements for the protection of the public health of the Philippine Islands, military and civilian. That is the first line of defense for this country. We must have detention quarters, laboratories, and everything necessary to safeguard against the introduction of cholera, plague, smallpox, and so forth. They are asking that sufficient funds be made available so they can set up temporary shacks for quarantine detention, and laboratory facilities necessary for quarantine activity. BREAK-DOWN OF ESTIMATE Mr. LUDLOW. How much of this $225,000 would be for personal expenses and how much would be construction? How would that be divided? Dr. KRATZ. $100,000 has been allocated for temporary construction. $45,000 has been allocated for equipment, automotive equipment, and laboratory facilities to set up two temporary shacks, or groups of shacks to house foreign quarantine activities-laboratories and, the necessary equipment to operate those foreign quarantine stations. Mr. LUDLOW. You still have a balance there between the $225,000 and these combined obligations. Dr. KRATZ. We have supplies of $42,500 and contractual services of $20,250. Mr. TABER. Repairing automobiles. Dr. KRATZ. Yes, and other equipment. There is $1,000 for utility services. Communication services is $1,500 and transportation of things $5,000. Mr. LUDLOW. That makes up the $225,000. Now the $100,000 is for temporary employees? Dr. KRATZ. No; there is no personal services here. Dr. KRATZ. That is for merely putting up the temporary shacks, two isolation hospitals and kitchens, detention building, officer quarters, attendant quarters, and administrative building, storerooms, a disinfection building, laboratory, a light plant, and a refrigeration plant. Mr. LUDLOW. No personnel is in that break-down? Dr. KRATZ. No. Mr. LUDLOW. Where will you get your manpower to do all that? Dr. KRATZ. There are funds available from the Philippine Island government which would take care of personnel services, plus the fact that funds are available for our own commissioned public health officers who are administering the program at the present time. Mr. LUDLOW. Are these quarantine activities primarily directed to the protection of the United States, or for the protection of the Philippine Islands? Dr. KRATZ. It is the first line of defense for the protection of the United States, especially against cholera and plague. Mr. LUDLOW. How essential do you think these shacks are and these laboratory facilities? Dr. KRATZ. A comprehensive quarantine program which would give the maximum amount of protection to our own people over here cannot be carried out unless the facilities are available. We are asking only for a minimum of shacks. COMMUNICABLE DISEASES Mr. LUDLOW. What communicable diseases are we in danger of in this country that might originate in the Philippine Islands? Dr. KRATZ. Cholera, smallpox, and bubonic plague. Mr. STEPHENS. When Dr. Smith, the man who followed General MacArthur out came back, he had a program which would in a manner restore the original buildings, the original quarantine stations and hospitals. We went before the Bureau of the Budget with such an estimate and they immediately stated that July 1, 1946, the Philippines become independent. The Bureau of the Budget did not allow our original estimate. We had a program that was quite larger than that but the Budget said that they were only going to approve what we could barely get by with out there. That is this $100,000 as against what amounted to about $750,000. EFFECT OF PHILIPPINE INDEPENDENCE ON ESTIMATE Mr. LUDLOW. If the Philippine Islands become independent as of July next year, how will that affect this program? Dr. KRATZ. We still have the obligation of an interim program. We have no base from which the foreign service can operate. Mr. TABER. Where is it operating now? USE OF ARMY FACILITIES Dr. KRATZ. Using the Army facilities. Mr. TABER. What are the Army facilities? Dr. KRATZ. Those are not along the docks where for the purpose of the floating equipment such facilities would be necessary. Mr. TABER. Where are they? Dr. KRATZ. I do not know. Mr. TABER. Does not anybody know? If they are being used, they must be something that would be suitable. Mr. STEPHENS. I had a lot of discussions with General Smith, and his statement to me was very clear that the Army and Navy had done the quarantine service and that all of the water-borne transport consisted of troops and troop supplies, but the minute that commerce starts up again hundreds of these junks and other vessels will be coming in from the mainland of Asia into the Philippine Islands. They have already started that and the Army is trying to turn this work back to the Public Health Service. They run their doctors down in jeeps or trucks from headquarters to do what quarantine is to be done but at that time there was no commercial transport. It was all Army or the Navy ships. Mr. TABER. Who is doing the quarantine work now? Is the Army doing it or are you doing it? Dr. KRATZ. We are doing it because we have General Smith over there right now who is an adviser to the High Commissioner, and he is also the quarantine officer for the Philippine Islands. Mr. TABER. You do not know whether he is doing it, or how he is doing it, and whether or not those facilities are going to continue to be available, or why they will not last the next 3 months as well as they have the last 6 months. We all know that the Army is withdrawing from a lot of its activities over there. There must be surplus buildings of one kind or another that could be used. If the Army had headquarters that have been used for this, why cannot they be used in the future? On top of that they have a lot of jeeps over there and that sort of material which will not be brought back to this country. We might as well continue to use those the next 3 or 4 months instead of getting new ones. Dr. KRATZ. During the war, the Army has been delegated authority by the Public Health Service to carry out foreign quarantine activities, and as has been mentioned before, most of the traffic has been military |