Estimating ratio of number of hospital beds per 1,000 poupulation: Five beds per 1,000 population (as set forth by American Hospital Association) Government figure 4.5 per 1,000. Estimated population of greater Muskegon in 1941, 75,149 would mean 375 hospital beds, or a lack of 175 beds to care for present population. Daily average load, Hackley Hospital, 1930–41 Defense industry employees admitted as patients in Hackley Hospital between Apr. 11 and June 19, 1941 HACKLEY HOSPITAL APPLICATION FOR LANHAM ACT GRANT Mr. GEORGE W. MCCORDIC, [Copy] JULY 15, 1941 Regional Director of United States Public Works Administration, 3636 Barlum Tower Building, Detroit, Mich. DEAR SIR: Hackley Hospital of Muskegon, Mich., desiring to avail itself of the provisions of the Community Facilities Act (H. R. 4545, Public Law 137, 1st sess., 77th Cong.) to provide for the acquisition of public works made necessary by the defense program, hereby submits the enclosed application for a grant of $325,000 to come under the authority of the Federal Works Agency of the Public Works Administration, and designated as defense public works. The forms on which this application is submitted were specifically designated for a public body, and we have adapted them to the requirements of a private institution in order to make this application. We are, therefore, supplementing the information contained in the forms by additional data regarding Hackely Hospital. Under the terms of said application it is proposed that the local community, by private subscription, and the Federal Government shall jointly participate, on an equal basis, in providing the additional facilities required at Hackley Hospital. The aggregate cost of said project is estimated at $650,000, of which it is proposed that the Federal Government shall pay one-half, or $325,000, conditioned on the local community contributing a like sum. I. FEDERAL PARTICIPATION JUSTIFIED Participation by the Federal Government in the amount indicated is justified by the following considerations: (1) Greater Muskegon, comprising the three municipalities of Muskegon, Muskegon Heights, and North Muskegon, and their immediate and continuously urbanized environs, forming a community of approximately 75,000 people, is a principal "defense area,' ," because of the nature, character, and volume of its industrial production flowing into the national defense effort. (2) A recent survey made by Defense Housing Authority, in scheduling tenancies for a local defense housing project now nearing completion, reveals 19,500 eligibles for defense housing quarters, based on their employment in national defense work, out of an aggregate factory employment of approximately 22,500. (3) A recent Detroit News survey reveals that Muskegon industries have been awarded an aggregate of $63,431,574 in direct Government contracts in the national defense program. Subcontracts held by local industries will aggregate at least 50 percent of this sum. (4) Aggregate industrial production for 1941 in the Muskegon area is estimated by Greater Muskegon Chamber of Commerce at not less than $120,000,000 and possibly $140,000,000, based on the first 6 months of the year. Of this amount, it is estimated at least 60 percent and possibly 67 percent is on Government account, directly and indirectly. (5) Prime contractors dealing directly with the United States Government and/or British Purchasing Commission are: (a) Continental Motors Corporation: Airplane engines for both airplanes and tanks, truck motors, et al. (b) Morton Manufacturing Co.: Machine tools, including horizontal boring, drilling, milling, shaping, planning and slotting machines. (c) Shaw-Box Crane & Hoist Co.: Electric cranes and hoists, United States navy yards; United States Ordinance Bureau. (d) Campbell, Wyant & Cannon Foundry Co.: Steel and steel treads for tanks, shells and other steel products, automotive castings. (e) Bennett Pumps division of John Wood Manufacturing Co.: Gun mounts, artillery parts, shell-loading parts. (f) Anaconda Wire & Cable Co.: Wire products. (g) Brunswick-Balke-Collender Co.: Army Quartermaster Corps equipment. (h) E. H. Sheldon Co.: Army equipment. (j) Shaw-Walker Co.: Office equipment. (k) Nelson Tanning Co.: Tanned sheepskins with the wool on. (1) Muskegon Motor Specialties Co.: Camshafts. (m) Sealed Power Corporation: Pistons and piston rings. (n) Kaydon Engineering Corporation: Antiaircraft gun bearings (U. S. Navy). (0) Accuralite Co.: Piston pins and sleeves. (p) Amazon Knitting Co.: Cotton shirts. (q) Central Paper Co.: Waterproof paper. (r) Standard Automotive Parts: Valve guides and machine keys. (s) Sargent Specialty & Machine Co.: Supplies Quartermaster Corps. (t) Borg-Warner Corporation (Norge division): Supplies Quartermaster Corps, United States Navy, etc. (6) Other indices indicating the upward trend in employment, et al., due to national defense work placed with Muskegon industries are: (a) Employment in major industries has increased from a monthly average of 12,050 in 1938 to 22,453 in June 1941. (b) Man-hours of employment have increased from a monthly average of 1,647,438 in 1938 to 3,948,609 in May 1941 (last available figure). (c) Debits to individual bank accounts have increased from a monthly average of $12,457,744 in 1938 to $22,655,341 in June 1941. (d) Electric kilowatt-hour consumption has increased from a monthly average of 6,467,770 in 1938 to 11,384,095 in June 1941. (e) Carloads received and forwarded have increased from 3,418 in June 1940 to 4,277 in June 1941. (7) Despite the fact that private home construction has doubled since 1939 (increasing from 350 dwellings in 1939 to approximately 750 dwellings in 1941, according to a survey made by Muskegon Federal Building and Loan Association), Defense Housing Coordinator is now erecting 300 homes for defense workers in Muskegon area, at a cost of $1,017,000. (8) A recent study of 500 admissions over an approximate 2-month period of time reveals the fact that 36 percent of the admissions were of workers or dependents of workers employed in industries working directly on defense contracts. This makes no allowance for industries employed on subcontracts, nor for the growth of service establishments resultant from increased industrial activity. (9) As a result of the increased industrial activity Hackley Hospital is wholly unequal to meeting the demands for hospital service placed upon it. During the past 6 months an average of 37.5 patients per month have been unable to obtain the service they requested from the hospital. A substantial percentage of these were unable to obtain admission at all. This by no means covers the list of those whom the hospital might have served, since local physicians thoroughly acquainted from day to day with the existing congestion have either referred patients elsewhere when hospital service was required, or have made arrangements to service their patients at the latter's homes. We submit herewith our record of the number of patients per month since September 1940 who have been denied their requests for services. Note the steady upward trend: Month: September 1940 October 1940_. November 1940_ Number of December 1940 8 May 1941. January 1941_. 55 June 1941 1 1 Average for 1941 to June 30, 37.5 patients. Number of patients 25 33 37 33 42 II. HISTORICAL Hackley Hospital was founded by a deed in trust on May 28, 1903, given by Charles H. Hackley and Julia E. Hackley, his wife. The trust has been carried on as a nonprofit corporation in the State of Michigan, and is known as Hackley Hospital. After Mr. Hackley's death, and under the terms of his will, an endowment fund of $500,000 was provided, and the hospital has operated as a charitable institution since it opened its doors in 1904. Under the terms of the original grant, the board of trustees of Hackley Hospital are not authorized to mortgage, lease, or encumber in any manner the land or building provided by Mr. Hackley. At the time of Mr. Hackley's gift there was no other hospital in the community, and the hospital has served in the place of a municipal hospital during these years without any burden on the community. About the same time a Catholic institution under the supervision of the Sisters of Mercy was established, and has also operated in the community and is known as the Mercy Hospital. There is an understanding with this hospital that Hackley Hospital has a priority claim on local contributions for a building fund. No tax has ever been levied in Muskegon for hospital purposes, although the hospital has by arrangement with the public authorities taken care of the indigent sick since its establishment. The original hospital building was constructed as a 60-bed institution, but has been expanded to 101 adult and children beds by interior changes and only a minor change in construction; namely, a temporary wooden addition for a small number of children's beds. In the community of Greater Muskegon, which consists of Muskegon, Muskegon Heights, and North Muskegon, there being no city or county hospital, the two local hospitals have handled all welfare and indigent cases. The cases which have not been paid for by the city or county have been handled by the endowment funds in the case of Hackley Hospital. Since its establishment the hospital, originally started as a $200,000 building, has grown to a $1,000,000 investment and there have been numerous improvements which have been paid for through the operating earnings of the hospital and of the endowment. Some of these improvements are as follows: Ground improvement. Hospital building $13, 754. 96 | Laboratory and X-ray 11, 105. 35 Nurses' home building 93, 892. 37 equipment.. Laundry equipment. $28, 565. 87 4, 072. 97 Faculty residence... 21, 201. 92 Medical and surgical equip ment_ 2, 847. 50 2, 429. 54 Nurses' home furniture and Office.. 1, 653. 11 While the deed and trust provided for the election of trustees by the trustees of the First Congregational Church, Mr. Hackley expressly instructed that "in the selection of trustees for the program administration of the hospital, you should be at liberty to include individuals outside of your society, whose advice, services, or cooperation might be desirable. While it is my purpose to establish an endowment toward the support of the hospital, it will not be a large one, for I want the members of your society and the people of our city to feel that each has a personal interest in the maintenance of the institution, in making it an efficient and everready agency for the relief of the sick and the suffering." In harmony with this request, it has been the aim of the institution never to refuse service to any persons requesting service when there has been an available bed. The hospital has always conducted its affairs so that it has operated within its income, and except for temporary borrowings to finance an improvement, the hospital has never owed any money except current monthly bills. At the present time, the hospital has no indebtedness except current accounts, and it has been the policy of the hospital to increase its services from its surplus earnings, as well as operate at as low a rate as possible in order to make these services available to everyone. Occasionally some gifts have been made to the hospital which have been used for charitable purposes unless a specific gift was made for definite improvement. III. CURRENT SITUATION In the latter part of 1939, the increased activity of local industries, resulting in an increase in population, was reflected in the crowded conditions in the hospital. This was due primarily to the major activities of the Continental Motors Corporation on orders placed with them by the British Purchasing Commission. At that time, the hospital board made a study of the situation and inaugurated plans for the enlargement of its present building. Since that time, the situation in the community has become more acute, and the original plans for a 50-bed addition now must be changed to provide for at least 115 additional beds. In support of the above statement, we have submitted a schedule on Form 500-D, part A. Our original plan for enlargement contemplated a campaign in the community for a fund of $300,000 to be provided by local industries, and public spirited individuals. Because the national emergency, reflected in the increased activities of our industries, imposed an unanticipated burden on our hospital, we have now adjusted our plans and propose a joint project by the community and the Federal Government. Consequently we are applying to you for a direct grant in an amount sufficient to construct accommodations to care for patients brought into the community by defense activities. In conclusion, we call your attention to the fact that Hackley Hospital is located on a large tract of ground comprising four city blocks, and is ideally situated for an enlargement by the proposed addition. Studies made by our very competent hospital architect, Carl Erikson, of the firm of Schmidt, Garden & Erikson, show this addition can be effected at a minimum cost for construction. Much of the overhead can be absorbed, and the additional work can be done by simply enlarging the present staff of the hospital. In order to make a prompt application, we are submitting sketches of our proposed addition, which we are prepared to change to conform to Government requirements. We respectfully call your attention to the fact that the District Director, United States Public Health Service District No. 3, was instructed to make a hospital survey at Muskegon to determine the needs for additional beds that may be provided by funds from the Communities Facilities Act. This survey was made on June 19, 1941, by Dr. L. O. Weldon, medical director, United States Public Health Service, liaison officer, Sixth Army Corps Area. Dr. Weldon advised us that he was impressed with the acute local need for additional hospital facilities. We are informed his report is on file with the proper authorities, and you may desire to consult it in connection with this application. We will be pleased to supply you any further data which may facilitate action on order that we may proceed promptly to the solution of a very acute hospital problem. IV. WHY GRANT IS REQUESTED Your local representative, Mr. Watkins, raised the question, "Why isn't application made for a loan rather than a grant?" May we point out in the first instance that both local hospitals (Hackley and Mercy) are chartered as nonprofit corporations under the laws of Michigan and render a charitable service. Hackley Hospital has never operated at a profit; never expects to. Part of its income is derived from the community chest, but this income represents only a small fraction of the cost of services it renders gratis to indigents and individuals in the lower income brackets. Secondly, it should be pointed out that since its founding every dollar of investment that has been made in the hospital has been contributed from public sources. The original gift which established the hospital came from Muskegon's great philanthropist, Charles H. Hackley, long since deceased. Since that time other individuals have contributed. Earnings from the endowment fund which Mr. Hackley created have been plowed back into the institution. In other words, the rates charged (and the same is true in Mercy Hospital) are based on the service-at-cost principle, with costs held to an absolute minimum. In this new project the local community is once more asked to provide the funds necessary for a capital investment by a donation and not a loan. No contributor expects to realize a penny from his subscription. With the local community meeting the needs of the natural growth of the city, we think it is only fair and proper that the Federal Government, which has superimposed the defense effort upon our ordinary volume of business, increased factory employment, by 50 percent, and brought in a large volume of migrant labor, should participate on the same basis as local citizens in providing the necessary physical facilities so that Hackley Hospital can render the services which the community expects of an institution of this character. Very truly yours, HAROLD MCB. THURSTON. EXHIBIT 41.-DEFENSE HOUSING IN MUSKEGON, MICH. REPORT BY EUGENE A. KRAUSS, HOUSING MANAGER, DEFENSE HOUSING DIVISION OF FEDERAL WORKS AGENCY, MUSKEGON, MICH. SEPTEMBER 18, 1941. Based on information taken from our applications for dwellings in the defensehousing project, we have compiled the following figures: Total number of applications received to Sept. 15.. 208 Total number of out-of-city, but within-the-State applicants 91 Total number of out-State applicants. 29 Canadian applicant 1 Average weekly earnings of applicants... $29.06 (This includes a number of monthly salaried employees-salaries ranging from $170 to $235.) |