in nature, from Asia to the Philippine Isles. Now, commercial traffic is on the increase and commercial planes are on the increase. That makes it directly a Public Health Service activity and in this commercial traffic the Army has no jurisdiction over the civilian popula tion.

CONSTRUCTION PROGRAM

Mr. LUDLOW. How long do you think that it would take to complete this construction program that you have in mind?

Dr. KRATZ. If the temporary building material can be gotten together, it would not take very long to put it up. It would be the simplest of construction.

Mr. LUDLOW. Considering the "if" angle of it, can you make any estimation as to how long it would take?

Dr. KRATZ. Not longer than a month.

Mr. LUDLOW. Would you have this situation develop-that the Philippine Islands would become independent and we would be carrying on a construction program in a foreign country? Would that not be a bit unusual and perhaps a bit complicating?

Dr. KRATZ. I do not know, unless I can mention S. 1610 which takes the rehabilitation program under consideration.

Mr. LUDLOW. I wonder what your thought is about the advisability of deferring this in the Philippine Islands until they become independent and we know something more about our bearing.

Dr. KRATZ. We are thinking more from the standpoint of responsibilities, legal responsibilities, of protecting our people and exercising our duties as well as we can under facilities which would be most suitable for such detention.

PREVALENCE OF COMMUNICABLE DISEASES

Mr. LUDLOW. I think that is highly commendable, but I wonder if there has been an invasion of communicable diseases of this character? Have you had an experience of this kind where there has been much trouble?

Dr. KRATZ. It is continuously coming in, and the only thing that I can think of regarding the Army facilities is that they are using them themselves and to us Army barracks for detention passengers with communicable diseases are not suitable. With our own detention facilities which could be immediately made into a hospital and a laboratory necessary to diagnose the quarantinable disease, we can function much better and do our legal duty as we should.

LABORATORY CENTERS

Mr. LUDLOW. I think that you might tell us something about these laboratory centers that you contemplate establishing. You said that there were three.

Dr. KRATZ. They are part of the quarantine facilities, and our setup for the diagnosis of the quarantinable diseases are required for making a definite diagnosis of cholera and plague.

Mr. LUDLOW. You propose some new laboratories?

Dr. KRATZ. No, sir; a restoration of the laboratories that have been in existence before. These two laboratories were to be set up at Mariveles and Cebu.

Mr. LUDLOW. They had been in existence before?
Dr. KRATZ. Yes. Now they are complete rubble.

Mr. TABER. There are not any Army facilities that will provide these laboratory facilities at the present time?

Dr. KRATZ. Yes, there are; but that is Army and has not been transferred to our direct responsibility.

Mr. TABER. The buildings would be available to you.

Dr. KRATZ. The buildings have been used as barracks and not as detention quarters, nor are there available complete quarantine stations set up to take care of the floating equipment and the necessary station personnel to take care of an efficient running of a very active quarantine service. That facility is completely absent at present. They are hoping to set up purely temporary structures on these devastated areas.

Mr. LUDLOW. A good deal of stress seems to be laid here upon the Philippine Isles. Of course you are likely to encounter communicable disease all over the world. Why is such a stress put upon the Philippine Isles?

Dr. KRATZ. Since the Philippine Isles are so close to the hotbed of diseases, that has been our first defense-taking in India, China, and Japan. The entire area over there is a hotbed of disease.

Mr. LUDLOW. Is there a good deal of leprosy over there?

Dr. KRATZ. Yes, mostly in Hawaii. However, cholera and smallpox and plague is rampant over there. With all of the destruction in the Philippine Isles I understand that the rats are increasing in great numbers and are a great hazard.

Mr. LUDLOW. Would you call leprosy a communicable disease? Dr. KRATZ. Slightly communicable by direct contact. It must be considered communicable.

EXPENDITURE OF PRIOR DEFICIENCY FUNDS

Mr. WIGGLESWORTH. I want to ask this question. You got $320,000 all told in the deficiency appropriation.

Dr. KRATZ. Yes.

Mr. WIGGLESWORTH. You do not know how much of that you have spent?

Dr. KRATZ. Of the $320,000?

Mr. WIGGLESWORTH. Yes.

Dr. KRATZ. We will know at the end of the fiscal year how much we have spent.

Mr. WIGGLESWORTH. As I understand, you do not know what you have spent.

Dr. KRATZ. Of the $320,000?

Mr. WIGGLESWORTH. Yes.

Mr. TABER. Do you have a way that you can tell and give it to us for the record?

Dr. KRATZ. Yes.

Mr. WIGGLESWORTH. What you have spent and what you have spent it for?

Dr. KRATZ. Yes. We can tell what we have spent for the European service because we are sending the officers over there continuously on that and are buying X-ray equipment.

Mr. WIGGLESWORTH. You must know from month to month what you have spent and for what.

Dr. KRATZ. Yes.

Mr. WIGGLESWORTH. What I want to know is at December 31 or January 1 what you have spent of that $320,000 and for what purposes. Dr. KRATZ. I can supply that for the record.

Mr. WIGGLESWORTH. Obviously you have expended that for purposes other than the Philippine Islands except for $50,000. Over and above that $320,000. you had $1,574,000 including the deficiency, and what is due under Public Law 106.

Dr. KRATZ. I knew that requirements to maintain the 40-hour week meant that we had to employ more personnel to maintain a 40-hour week.

Mr. WIGGLESWORTH. I understand the generalities, but I want some specific mathematical information. I would like to have it for the record. Suppose you give me a statement, month by month, of what you spent right down to January 1.

Dr. KRATZ. All right, sir.

(The information is as follows:)

Foreign quarantine service, Public Health Service, expenditures, July 1, 1945, to Jan.

NOTE. Included in this total is approximately $62,300 of the deficiency appropriation of $320,000. This deficiency appropriation, being for regular quarantine activities, is not accounted for as a separate item.

ASIATIC DISEASES

Dr. KRATZ. The head of this outfit and Dr. Smith are in the Philippine Islands. I am sorry that you gentlemen did not hear Dr. Smith. He would tear your heart out regarding these Asiatic diseases.

Mr. WIGGLESWORTH. Why did you not spend more of this $320,000 on Asiatic diseases then?

Mr. STEPHENS. That is a fair question. We had to pay Coast Guard replacements and 40-hour week employees already on duty. There were all of these wives to examine. They could not come over without an examination. There was commercial traffic from all of the European countries and we put that right in the regular quarantine service. I think that this statement that Mr. Wigglesworth asks for of the figures month by month will be enlightening to this committee. Mr. TABER. You knew this morning that we wanted that information. I do not see why you keep on coming up here without it.

Dr. KRATZ. One of the most important things that we have to contend with is that we have to operate the quarantine service on a 84-hour week and we are directed to operate on a 40-hour week. So, in order to reconvert to a 40-hour week we had to put more employees

on.

Mr. TABER. From an 84-hour week to a 40-hour week, and that took $70,000. The Coast Guard was doing your work. That is 16 percent or something like that. You knew that you had to do that when you came up here for the deficiency, did you not?

Dr. KRATZ. The 40-hour week and the 114 Coast Guard replacements were justified and approved in the first deficiency.

Mr. TABER. You made that plain to the committee, and the committee considered the matter and the Congress considered the matter and gave you $320,000 in the light of those representations. Then you only put $50,000 where you say the real need is, in the Philippine Islands, and you come running back here asking the Congress to give you what they already decided not to give you.

Dr. KRATZ. The Coast Guard replacement took $119,000 since we had to replace personnel when we took over that work; $70,000 to meet a 40-hour week and $131,000 to meet the European immigration needs, and reopen Honolulu quarantine.

Mr. TABER. Was that not in the picture when you came up here for the deficiency?

Dr. KRATZ. Yes. It was fully justified.

Mr. LUDLOW. You referred to a communication from Governor McNutt. I would like for you to put the text of that in the record, if you will. I would like for you to tell us the date of that communication

Dr. KRATZ. That was dated January 1, 1946. It is quoted in the justification.

Mr. LUDLOW. Has the situation changed any since that time?
Dr. KRATZ. No, sir; it has become worse.

Mr. LUDLOW. Thank you, Dr. Kratz.

HOSPITAL AND MEDICAL CARE

STATEMENTS OF DR. OTIS L. ANDERSON, MEDICAL DIRECTOR; ARMAND ADAMS, ASSISTANT BUDGET OFFICER; AND M. A. STEPHENS, BUDGET OFFICER; FEDERAL SECURITY AGENCY

RECONCILIATION OF APPROPRIATIONS, 1946, AND ESTIMATES, 1947

Mr. LUDLOW. We have before us for consideration in House Document 436, an estimated amount of $2,807,000, additional for hospital and medical care for the fiscal year 1946, United States Public Health Service. There was previously appropriated $15,501,300. There is pending on account of Public Law 106, $3,935,200 making a total for 1946 of $22,243,500.

Mr. TABER. Is this second figure $3,935,000?

Mr. LUDLOW. I was going to call attention to that, Mr. Taber. That particular figure, the additional amount on account of publiclaw increase, the amount indicated in House Document 437, is $3,935,000. On page 22 of the justification the amount appears as $3,791,484 and the 1947 Budget gives a still different figure of $3,329,635. We have before us therefore three sets of figures covering Public Law 106. Which is the correct figure?

Dr. ANDERSON. The information that you have given, Mr. Chairman, I judge refers to the total appropriation, hospital and medical care, Public Health Service. I will discuss that part that refers to the Hospital Division. In an effort to follow your previous remarks, I should like to state that our deficiency amounts to $2,712,000 and Public Law 106 amounts to $3,791,484. These amounts added to the original 1946 appropriation of $14,377,419 aggregate $20,880,903. Mr. LUDLOW. What branch are you speaking of?

Dr. ANDERSON. The Hospital Division.

Mr. LUDLOW. What about these larger figures?

Dr. ANDERSON. They embrace both the Mental Hygiene Division and the Hospital Division activities.

Mr. LUDLOW. That is what you are speaking for; you are not speaking for mental hygiene.

Dr. ANDERSON. That is right, just the Hospital Division. The Public Law 106 funds, plus the deficiency, added to the original appropriation for the Hospital Division for 1946 total $20,880,903. Mr. WIGGLESWORTH. Exclusive of the Mental Hygiene Division? Dr. ANDERSON. That is correct, sir.

Mr. LUDLOW. Now, the budget submission, House Document 437, states that it provides for all pay-law costs up to time of submission and that supplemental estimates for 1946 would include such provision therefor as might be necessary. That would indicate that the instant estimate of $2,807,000 is carrying its own; is that right?

Dr. ANDERSON. The increase in the base pay is provided for in Public Law 106; that is correct, sir. Funds requested in this estimate for personal services do not duplicate the amount requested in Public Law 106.

Mr. LUDLOW. The estimates cover the pay-roll costs?

Dr. ANDERSON. That is correct.

Mr. LUDLOW. Here is a rather puzzling circumstance that I would like to get cleared up. Your 1947 budget calls for an appropriation under this head of $19,185,900. Adding in pay-law costs and using the figures in the 1947 budget, your 1946 total is $18,830,935, and the budget includes for 1947, $19,185,900. The increase is $354,965. How are you going to absorb in that amount the whole-year cost of this additional amount that you are requesting for 1946? In other words, unless there is to be presented a 1947 supplemental estimate, or unless the pending 1947 estimate is increased by the Congress without a supplemental estimate, granting the additional amount for 1946 would mean sanctioning now a 1947 deficiency?

Dr. ANDERSON. That is correct, sir. We have now pending before Congress an appropriation request for the fiscal year 1947 of $17,553,900. As a result of our conversations with the Bureau of the Budget, they have entertained our submitting for their consideration a supplemental estimate to the 1947 annual appropriation amount which at this time I can state is estimated to be $3,362,935. Therefore, if favorable consideration should be given to the total request, the total appropriation for 1947 would be $20,916,835.

Mr. LUDLOW. What would be the whole year's cost of the additional amount now requested for 1946?

Dr. ANDERSON. The whole year's cost would be $20,880,903 in the fiscal year 1946.

ADDITIONAL PERSONAL SERVICES REQUESTED

Mr. LUDLOW. You might take up the appropriation objects under this supplemental estimate. You provide personal services in hospital divisions, 566.2 man-years additional employment. That is broken down to 8 additional man-years in the Department at a salary obligation of $22,593. The purpose of strengthening your Washington staff is to improve its quality; is that right?