not here involved, be covered into the Treasury "and accounted for as one fund", the status of such moneys was definitely fixed, and there now appears no question but that the clearing and handling of checks drawn upon funds so in the Treasury can be considered only a normal function of the Treasurer's office, and the expenses incident thereto are for defraying from funds appropriated by the Congress from the expenses of the Treasurer's office. However, since this law was not enacted until after the appropriations for the Treasurer's office for the fiscal year 1936 had been made, and since it appears that the estimates on which such appropriations were based submitted on the assumption that certain funds would be made available by the Tennessee Valley Authority for the handling of its checks by the Treasurer's office, this office would appear justified in not objecting to the crediting of the working fund as proposed with funds to cover the fiscal year 1936, but with the understanding that for the fiscal year 1937 proper steps will be taken for inclusion of the necessary cost of this work in the estimates to be submitted for that fiscal year. On the basis of such. understanding, I am giving instructions for the approval of the covering warrant in question, if otherwise correct and proper. Respectfully, J. R. MCCARL, Comptroller General of the United States. Senator MCKELLAR. How much money was taken out of those several appropriations? Mr. STARRATT. For the fiscal year 1936 there has been transferred between July 1, 1935, and February 15, 1936, for the use of the Treasurer of the United States in payment for work of employees on the regular roll a total of $51,608, including from the Agricultural Adjustment Administration $25,436, from the Home Owners Loan Corporation, $11,940, from the Federal Farm Mortgage Corporation, $1,543, from the Tennessee Valley Authority, $1,794, from the Farm Credit Administration, $2,652, from the Reconstruction Finance Corporation, $572, and from the Federal Emergency Relief Administration, $7,671. These are funds that were transferred from the organizations named for the payment of clerks employed on the regular rolls of the Treasurer's office in order that we may handle their checks, bonds, and so forth, and for which no regular estimate has been included in the budget. There was also transferred during the same period $1,436.77 from emergency organizations for work paid for directly out of such funds. Senator MCKELLAR. What was the estimate of what would be necessary out of these appropriations which are hereby reappropriated? Mr. STARRATT. You refer, I think, to the fiscal year 1937? Senator McKELLAR. 1937. Mr. STARRATT. We have estimated that the total would be about $233,250, including for the Agricultural Adjustment Administration $150,000, for the Home Owners Loan Corporation $38,000, for the Farm Credit Administration $16,000, for the Tennessee Valley Authority $10,500, for the Federal Farm Mortgage Corporation $15,000, and for the Reconstruction Finance Corporation $3,750. Of the total to be transferred for 1937 it is estimated that $70,000 will be used to pay for services of regular roll employees on emergency work and that the balance of $163,250 will be used for services, supplies, equipment, and so forth, to be paid for directly out of such funds. In fact what the Department is asking for is an amendment to to the appropriation act to legalize such transfers of funds by the emergency organizations and it is not requesting that the annual appropriation be increased. TREASURY AND POST OFFICE DEPARTMENTS APPROPRIATION BILL, 1937 TUESDAY, FEBRUARY 25, 1936 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D. C. The subcommittee met, pursuant to adjournment, at 10:30 a. m., Hon. Kenneth McKellar presiding. Present: Senators McKellar (chairman), Glass, Hayden, McAdoo, Steiwer, Norbeck, and Frazier. STATEMENT OF A. W. STARRATT, CHIEF, ACCOUNTING DIVISION, TREASURER'S OFFICE, TREASURY DEPARTMENT Senator MCKELLAR. Mr. Starratt, what item are you interested in? Mr. STARRATT. We are not asking for any money at this time, but the Secretary wrote on February 19 to the committee and requested the insertion on page 48, after line 3, of the following: With the approval of the Director of the Bureau of the Budget, there may be transferred to the appropriations, "Salaries, Office of Treasurer of United States, 1937", "Contingent Expenses, Treasury Department, 1937", "Printing and Binding, Treasury Department, 1937", and "Stationery, Treasury Department, 1937", from funds available for the Agricultural Adjustment Administration, Home Owners' Loan Corporation, Farm Credit Administration, Tennessee Valley Authority, Federal Farm Mortgage Corporation, and Reconstruction Finance Corporation, such sums as may be necessary to cover the expenses incurred in clearing of checks, servicing of bonds, handling of collections, and rendering of accounts therefor. Senator MCKELLAR. How much money is there in all of those funds now? Mr. STARRATT. For the fiscal year 1937 we estimate about $233,000 will be necessary for carrying on these emergency activities. Senator MCKELLAR. Then you need that much additional? Mr. STARRATT. Well, we have without any question up to this time been able to obtain from these emergency organizations transfers of funds to the Treasury Department for use of the Treasurer in handling the work, but recently the Comptroller General has said to the Secretary with reference to a request for funds of the Tennessee Valley Authority that he felt that this could not be continued in the fiscal year 1937. He would agree for the fiscal year 1936, but not thereafter, and that is the reason that the Secretary is requesting that you authorize such transfers as have been accomplished heretofore during the past 2 or 3 fiscal years. Senator MCKELLAR. Carrying out a policy that you have been following heretofore? 51 Mr. STARRATT. Yes. These funds have never been requested of the Congress in the regular estimates. Senator MCKELLAR. All right, sir. Anything else? Mr. STARRATT. I think not. I think that it is completely covered in the Secretary's letter. Senator MCKELLAR. And, we will put the letter in the record. (The letter was previously inserted at end of previous day's hearings.) PUBLIC HEALTH SERVICE Senator McKELLAR. Next we will take the Public Health Service. STATEMENTS OF DR. L. R. THOMPSON, ASSISTANT SURGEON GENERAL; DR. W. L. TREADWAY; AND R. L. HARDOW, CHIEF OF ACCOUNTS SECTION DISEASE AND SANITATION INVESTIGATIONS Dr. THOMPSON. Mr. Chairman, on page 37, line 12, is found the item we are interested in. Senator MCKELLAR. Wait a minute. That is page 37, line 12? Dr. THOMPSON. Yes, sir. The Secretary of the Treasury wrote you a special letter on February 18 requesting you to strike out "$1,155,160" and insert "$1,500,000." Senator MCKELLAR. We will put the letter in the record. (The letter referred to is as follows:) Hon. CARTER GLASS, Chairman, Committee on Appropriations, TREASURY DEPARTMENT, Washington, February 19, 1936. United States Senate. MY DEAR MR. CHAIRMAN: Referring to my letter of February 13, 1936, submitting certain recommendations for amendments to the Treasury bill for 1937 (H. R. 10919), I submit the following additional amendment which is considered necessary: Page 37, line 12, strike out $1,155,160 and insert $1,500,000. The amount of $1,155,160 included in the Treasury bill for disease and sanitation investigations is $344,840 less than the amount included in the Budget for 1937 for this purpose. This reduction brought the amount available to the Public Health Service for new work as authorized in the Social Security Act to $900,000 instead of $2,000,000 as originally authorized by Congress, and $1,500,000 as recommended by the President in his Budget. The summary of what has happened to the original authorization of $2,000,000 for disease and sanitation investigations (sec. 603, Social Security Act) may be stated as follows: Amount authorized by the Social Security Act for diseases and sanitation investigations- Amount recommended by Bureau of the Budget- Amount recommended by House Appropriations Committee___ Amount eliminated by abolishment of previous appropriations for field investigations and rural sanitation___. Total net amount of additional funds for diseases and sanita- $2, 000, 000 1, 500, 000 1, 155, 160 255, 160 900, 000 The amount of $1,155,160 is insufficient to enable the Public Health Service to meet the requirements of its research work and to conduct studies which are necessary to insure the most effective utilization of the $8,000,000 appro priation to be allotted to the States. It will make it impossible for the Public Health Service to supply the necessary technically trained personnel to give the States the service they should have in connection with the $8,000,000 grants. The restitution of the cut is needed for the general research program of the Public Health Service because the operation of the social-security program makes it imperative for the Public Health Service to enter certain fields of work intimately related to this program and which it has been unable to develop fully in the past. The reduction of $344,840 in the amount recommended for this work will result in curtailment harmful not only in limiting direct investigations of disease, but also in making it impossible for the States to utilize their direct grants as effectively and efficiently as they should. Two specific instances of harmful curtailment can be cited: (a) The National Institute of Health is the only laboratory of the Federal Government solely concerned with research in problems directly affecting human health. It is charged with the control of biologic products used in this country. No single group of products enters into the life of every family in this country more than do these, over which the Public Health Service has sole supervision. Without additional funds no money will be available for necessary research work to develop better standards, for the classification of different bacterial groups and viruses, and for the study of the preventive and curative effects of these products. (b) In no other field of public-health activity has there been a more urgent demand from State health authorities, and from labor, and industry, than for assistance in industrial hygiene. Problems of diseases due to dust exposure, including silicosis, and of industrial toxicology resulting from rapid developments in the field of chemistry have been making increased demands on the Public Health Service to supply the necessary scientific information to the States for their use in the protection of workers in these fields of industry. Without additional funds these challenging requests from States will necessarily not be met satisfactorily. In addition, it should be emphasized, States having a special technical problem, needing the help and counsel of a national institution or other publichealth specialist, must either have their request for the want of such a person refused, or if granted, the assignment of such a person results in seriously delaying important research work at the National Institute of Health. The number of trained personnel is wholly inadequate to meet the demands of field aid and headquarters research. It is urgently recommended, therefore, that the estimate under this heading be increased to the amount included in the Budget for the work of the United States Public Health Service under section 603 (a), title VI, of the Social Security Act, namely, $1,500,000. Very truly yours, H. MORGENTHAU, Jr., Secretary of the Treasury. Dr. THOMPSON. $1,500,000 is the amount in the estimates by the Director of the Budget. Senator MCKELLAR. What are the reasons for that? Dr. THOMPSON. Well, Mr. Chairman, under the Security Act there is authorized to be expended annually $2,000,000 for research and investigation of public health, including the necessary technical work to the States in supervising the allotment of $8,000,000 for public-health work in the States, and in the regular appropriation to the Public Health Service for this particular line of work we had $255,160, making a total of $2,255,160. The Director of the Budget, however, estimated that $1,500,000 would be sufficient for this work and it was afterward reduced by the House committee to $1,155,160. Senator MCKELLAR. Now, what are you supposed to do with the $345,000? Dr. THOMPSON. Mr. Chairman, it mostly goes into two general fields of work; in industrial hygiene, which is the study of the health problems in industry; and into our National Institute of Health, in which we have control of biologics. There is need of a great deal of additional research work in connection with the control of biologics in this country. Senator MCKELLAR. Well, you have more money than you had last year? Dr. THOMPSON. Yes, sir; we have more money, Mr. Chairman, considerably more; but these problems are very real and are very important. We have confronting us in industrial hygiene the question of silicosis. There is need for a lot of studies of the silicates, which at the present time we have no satisfactory information about as to whether they are harmful dusts or not, and unless we can have funds to make investigations of the silicates and other similar dusts where we also have we have very little information Senator MCKELLAR. What did you do in connection with that work last year? You had about $600,000 did you not? Dr. THOMPSON. We had altogether, from all appropriations, Mr. Chairman, for research this present year about $1,002,515. That includes all of the various appropriations which enter into the research work, so that if you were to subtract the amounts needed for cooperation with the States, it actually amounts to $780,000 more than we have had during the last year, that is because we have lost our regular appropriation, or rather, it has been combined. These studies, Mr. Chairman, are studies of this type [exhibiting volume] which we made for Pennsylvania, studies of anthraco-silicosis among hard-coal miners. This investigation was requested by the Department of Labor, the Governor, the hard-coal operators, and the hard-coal miners, and studies like that which give us the facts, cost about $30,000 to $50,000. Senator MCKELLAR. What do you propose to do; get out another volume? Dr. THOMPSON. Not on the same thing, but on other phases of the hazards of dust. So that when you are speaking of $150,000, you are really only taking up about three or four such studies. I do not think there is any field of work in which we need to do more research. Senator MCKELLAR. What would you do with the additional money, with the $345,000, employ more people? Dr. THOMPSON. Yes, sir. We have the projects all set up and know just exactly what we want to do. We know what personnel we want and the civil service examinations have been held. The details of each study were brought out in the House hearings in very complete form." Senator MCKELLAR. All right, sir; the committee will give it consideration. Is there anything else you want to present? CHANGE IN LANGUAGE Dr. TREADWAY. Mr. Chairman, on page 35, line 10, the language of the Treasury Department appropriation for the fiscal year 1937, affecting the Division of Mental Hygiene in the office of the Surgeon General, Public Health Service, as approved by the Appropriations Committee and passed by the House is different from that approved |