had held there had been payment of over $4,000 and the United States district attorney had been directed and had been pressed to bring court action to collect that money. Now, if there have been expenditures in violation of law-would not they be in violation of law if there was no law to provide for them?

Mr. McCARL. Surely.

Mr. SCHAFER. Then, should not some department officer be directed to bring action to collect them, the same as in the Williams case?

Mr. McCARL. Yes, sir, surely; and in the last analysis it will be done.

(The correspondence submitted by Mr. McCarl in connection with his statement follows. The first fragment is the completion of his letter of August 15, 1928, to the Secretary of the Interior, from the point where he was interrupted during his statement by Mr. Lanham.)

This office has been reluctant to take formal action in the matter pending some action by the Personnel Classification Board, but it now seems that sufficient time has expired to enable the board to act under the statute and to determine the value of the allowances furnished in kind in order that the salary rates of all positions may be adjusted in their proper grades. In the absence of action by the board it becomes the responsibility of the administrative office and of this office to determine the value of the allowances furnished in kind of all employees affected in order that proper retirement deductions may be made. Therefore, the administrative office should proceed at once to determine the value to the employee of the allowances furnished in kind in the case of all employees under St. Elizabeths Hospital. The schedule of values for the same or similar class or character of allowances furnished in kind should be as uniform as practicable. The administrative report should be forwarded to this office and to the Personnel Classification Board before October 1, 1928. Effective not later than that date the total salary rate, including both the amount of cash paid and the determined value of allowances furnished in kind, will be considered the "basic salary, pay, or compensation" for the positions on the basis of which retirement deductions will be computed, and for the purpose of determining whether the cash salary paid is in excess of that authorized by law.

Respectfully,

J. R. MCCARL,

Comptroller General of the United States. (The Secretary of the Interior replied under date of September 22, 1928, as follows:)

The COMPTROLLER GENERAL.

DEPARTMENT OF THE INTERIOR,

OFFICE OF THE SECRETARY, Washington, September 22, 1928.

DEAR MR. COMPTROLLER GENERAL: I am transmitting herewith copy of report from the assistant to the superintendent of St. Elizabeths Hospital, dated September 14, 1928, with reference to your letter of August 15, 1928, regarding the valuation of quarters, subsistence, and other allowances furnished certain officers and employees of the hospital residing on the grounds of that institution. Acting under authority of the act of July 19, 1919 (41 Stat. 163, 205), the Secretary of the Interior adjusted the compensation of employees of the hospital. The salary of the superintendent was thereby increased to $7,000, with full maintenance. That action was held by the comptroller to be without authority of law, as the salary had been theretofore fixed by statute. (See 26 Comp. Dec. 493.) To remove that objection Congress incorporated in the act of March 6, 1920 (41 Stat. 503, 513), the following:

"Hereafter the accounting officers of the Treasury are authorized to credit the accounts of the special disbursing agent of St. Elizabeths Hospital with such amounts as he has or may hereafter pay in carrying out the provision of the sundry civil act of July 19, 1919, relating to the readjustment of salaries at the hospital, and the schedule of salaries and allowances for maintenance, where the latter is not provided by the hospital, approved by the Secretary

of the Interior August 1 and November 25, 1919, respectively, or as may be modified hereafter by him, notwithstanding the act of April 6, 1914, or section 4839, Revised Statutes, United States, as amended."

The schedules of cash pay and allowances in kind were fully explained at the hearings before Congress at that time, and it was well understood that the superintendent was receiving compensation at the rate of $7,000 per annum, with board, lodging, laundry, and medical attention for self and family. Annual appropriations for support of the institution have been made with that understanding.

The positions at the hospital were classified under the provisions of the classification act of 1923 (42 Stat. 1489), and the result of that classification was brought to the attention of Congress in your report of December 6, 1926, after investigation of the hospital. (See House Document No. 605.) Among other things it was reported: "Since July 1, 1924, the hospital in addition to paying the salaries fixed as above has been furnishing quarters, subsistence, and other allowances, as specified in statement attached."

It will thus be seen that Congress has continued to make appropriations based on the estimates for cash salaries, with knowledge that quarters and other allowances were furnished employees in addition to the cash pay.

The valuation of such allowances was considered by this department and the Personnel Classification Board, and it was concluded that the arrangements for quarters and so forth for employees needed at all times at the institution were for the benefit of the institution rather than the individual, and should be classed as equipment needed for official purposes. Congress has apparently adopted the same view and has recognized the existing status since the adjustment of salaries under the classification act. As that action has been sanctioned by Congress by making yearly appropriations on Budget estimates in harmony therewith, it is believed that the present arrangement should not be disturbed at least for the present fiscal year.

It is accordingly requested that any proposed change in this matter be held in abeyance until Congress shall have had further opportunity to consider the subject in connection with the 1930 estimates.

Very truly yours,

The SECRETARY OF THE INTERIOR,

E. C. FINNEY, First Assistant Secretary.

DEPARTMENT OF THE INTERIOR,

ST. ELIZABETHS HOSPITAL, Washington, D. C., September 14, 1928.

Washington, D. C.

SIR: In reply to yours of August 17, 1928, transmitting a letter from the Comptroller General of the United States dated August 15, 1928, pertaining to the salary rates for positions of employees working and residing at St. Elizabeths Hospital, which had been fixed under the classification act of 1923 on the basis of cash paid only, without including the value of quarters, subsistence, and other allowances furnished in kind.

We have made a very careful examination of this letter and we note first that the comptroller requests you to determine the value to the employees of the allowances furnished in kind in cases of all employees under St. Elizabeths Hospital and cites the fact that the Personnel Classification Board has been requested to fix the value of the allowances in kind but has refused or failed to act giving as reason that the hazardous nature of the employment and the necessity of being subject to call 24 hours of the day justifies the granting of allowances in kind without deduction from salary; and we note further that in this letter there is no question of deduction from salary, but merely question of determining the value of allowances furnished in kind in order that the total salary rate and basic salary, pay, or compensation may be determined upon the supposition that the value of the allowances furnished in kind is as much a part of the total salary rate and the basic compensation as cash payment-and assume, therefore, that the fundamental purpose of the letter is to determine the value of the quarters and maintenance furnished to the employees and what adjustments should be made in their salaries in consequence.

The comptroller in his statement cites the several classification acts in reference to the fact that the Personnel Classification Board shall make necessary adjustments in compensation for positions carrying maintenance, and for

positions requiring only part-time service, together with comptroller's decisions on the act of March 4, 1923; also provision in the annual appropriation acts for the Treasury and Post Office Departments, directing the head of an executive department or independent establishment to furnish civilians employed in the Field Service with quarters, heat and light, etc., provided a reasonable value of such allowances shall be determined and considered as part of the compensation in fixing the salary rate of such civilian. The comptroller states that as the Personnel Classification Board has acted with respect to other positions in the District of Columbia that there would appear no sound reason for not taking similar action with respect to positions under St. Elizabeths Hospital; adding, furthermore, that it would appear that the total salary rate of the superintendent and possibly other officers or employees will exceed the maximum salary rate of $9,000 authorized by the classification act as amended by the act of May 28, 1928, when the determined value of all allowances furnished in kind is properly added to the cash paid, as required in this statute.

It would seem that the comptroller's letter is predicated on the value, or reasonable value, of what is furnished in kind to the superintendent and employees of St. Elizabeths Hospital who are compelled to live on the reservation, and are responsible for 24-hours service, and receive their quarters or maintenance from the hospital. He gives one example, as he says, for mainte

nance.

In examination of this list, showing a total of estimated value of allowances of $11,059, this sum includes items that should not be included, and others the approximate value of which, as placed, may be questioned. As to the superintendent's allowances, for example, it would be necessary, in order to determine what the value is, to analyze the statement submitted. The smallest item included is telephone service, $48. Fortieth Statutes, 19, approved April 17, 1917, as contained in the United States Code 680, section 175, provides "Rental for a system of telephones connecting the superintendent's, physicians', and employees' quarters at the hospital with other locations on the hospital grounds, may be paid from the appropriations for the support of the hospital." Here is a direct act of Congress authorizing phones in the superintendent's quarters to be paid from the appropriations for the support of the hospital, which apparently has never been repealed and is still in force, yet according to the comptroller's letter this should be paid out of the superintendent's salary. would hardly seem that the comptroller intended that his letter of August 15 should supersede a direct act of Congress.

It

If we add the allowances as stated by the comptroller, you will see that the total should be $10,059 instead of $11,059.

The statement says the superintendent has an apartment completely furnished, containing 19 rooms, for which a rental should be paid of $2,400 per annum. The building in which the superintendent's apartment is located was authorized to be built in 1857. The first part of it was finished in 1860, and this apartment was furnished and fitted up completely and was occupied by the superintendent of the Government Hospital for the Insane and his family. An addition to this building was completed in 1875. In the center of the whole building were the quarters of the superintendent of the hospital and his family. These quarters were built in such a way that they connect on both sides with patients' quarters, there being a total of something more than 900 patients living in the same building in which the superintendent resides. As stated, these quarters have been used by successive superintendents and their families ever since the building was constructed. These quarters are built in such a manner that if the superintendent could not use all of them the cost of dividing this section and using it for other purposes would probably be as great as would be the cost of erection of a separate house for the superintendent's use. If the quarters remained idle it would require a caretaker to keep them in proper preservation. Included in these quarters is what the comptroller designates as one board meeting room, attached to which is a wash room or bathroom. For upward of 60 years this board meeting room has been set aside for the use of the Board of Visitors, composed of nine citizens of the District of Columbia, appointed by the President, to preside over the hospital. This board is an honorary one and without compensation. They meet at the hospital at least once a month and must have some place in which to hold their deliberations. While at the hospital it may be necessary for them to have their meals, and these are furnished from the kitchen which provides for the superintendent. This is still the custom, as it has been for the last 68 years.

Included in the statement is mentioned three kitchen rooms. These rooms are in the basement of the building, and if they were not used for the kitchen would remain idle, as they are unfiit for other use. While other rooms named are part of the superintendent's quarters, all are not needed by the present superintendent for his personal use. They are there, however, and can not be separated and used for other purposes.

A careful analysis of what is given would seem to indicate that what is charged to the superintendent should be considered under two heads: First, regarding the superintendent as the head of the hospital; and second, as an individual. As already stated, as host to the Board of Visitors there are certain charges which are not personal. Also, as superintendent of the Government hospital for mental diseases, he must receive as visitors officials of similar institutions in the various States and in foreign countries. For many years it has been the custom of institutions of this kind to entertain at hospital expense visiting scientists interested in the same field of work. Ideas are exchanged by such visiting scientists and the medical officers of the hospital. Frequently clinics are held by the visitor, who thus gives the hospital staff the benefit of his knowledge, often of new ideas and more advanced forms of treatment. Such clinics are held in the superintendent's quarters. The visitors are entertained there, are lodged, and given meals. The care for such a guest and the cost of his meals are included in the amount chargeable to the superintendent's quarters and kitchen.

The organic act of the hospital provides that: "There shall be in the District of Columbia a Government hospital for the insane (now St. Elizabeths), and its object shall be the most humane care and enlightened curative treatment of the insane of the Army and Navy of the United States and of the District of Columbia."

In order to comply with the provisions of this law, it is necessary that the medical staff of the hospital shall be in a position to acquire knowledge of the most advanced methods of care and treatment of patients suffering from mental diseases. No science has made greater advances in the last decade than has medicine, and no branch of the medical profession has made greater advances than psychiatry. Improved methods of treatment of mental disease are being constantly worked out and utilized. The best and at times the only way to acquire such knowledge and understanding of new methods of therapy as will permit of their utilization in the treatment of patients is by direct personal contact with those who are proficient in their use. It would seem that from the foregoing then, as stated, that the superintendent's allowances should be considered from two standpoints. First, those that are incurred as a representative of the Government; and, second, those that are personal and for his benefit. The organic act of the hospital states: "The chief executive of St. Elizabeths Hospital shall be a superintendent who shall be appointed by the Secretary of the Interior and shall give bond for the faithful performance of his duties in such sum and with such securities as may be required by the Secretary of the Interior. The superintendent shall be a well-educated physician possessing competent experience in the care and treatment of the insane; he shall reside on the premises, devote his whole time to the welfare of the institution," etc. Thus, it may be seen that under the law the superintendent of St. Elizabeths Hospital must live on the premises. It is not a voluntary thing, but compulsory. He must live in quarters provided by the Government; he can not select his quarters. The rooms he occupies were built from 55 to 70 years ago. Apparently they were built for the use of the superintendent, unfortunately in such a manner that they could not be divided. It was intended that the superintendent should be provided with quarters. As a matter of fact, when he was offered the position in 1903 the letter making the offer read that the position would include a salary of $4,000 and full maintenance at the hospital.

At the time he was given this position the hospital had a population of approximately 2,400 patients. As the hospital grew Congress recognized that the work of the position of superintendent was greater and increased the salary to $5,000 per annum. On August 1, 1919, under authority to adjust compensation of employees in the hospital the salary was increased to $7,000 per annum with full maintenance. The Comptroller of the Treasury questioned your authority to make this increase and the whole matter was presented to Congress which directed that the General Accounting Office is authorized to credit the accounts of the special disbursing agent of St. Elizabeths Hospital with such amounts as he may pay in carrying out the provision of the preceding session relating to

the readjustment of salaries at the hospital and a schedule of salaries and allowances for maintenance where the latter is not provided by the hospital, approved by you August 1, and November 25, 1919, respectively, or as may be modified by him notwithstanding the provisions of section 55 of title 5 of section 165 of this article. (See U. S. Code 680, 168.) In the hearings before the subcommittee of the House Committee on Appropriations on the second deficiency appropriation bill for the fiscal year 1920, pages 384-391, the whole matter of furnishing quarters and maintenance to the employees was explained and, where the quarters were not furnished, of giving allowance to such employees as could not be accommodated at the hospital. The president of the Board of Visitors appeared before the committee in reference to the increase of the superintendent's salary. In the schedule of salaries and allowances for maintenance mentioned in the act of March 6, 1920, as approved by you August 1, 1919, the superintendent was given a salary of $7,000 with board, lodging, laundry, and medical attention for self and family. In the schedule of alternative allowances: approved by you is the following:

"If the full number in this list could be secured, it would be impossible to furnish lodging to all of them, and it is desirable that an alternative pay roll be authorized so that allowances could be made for the general run of the hos pital employees, amounting to $360 per annum. All employees securing a salary of from $1,500 to $1,800 per annum, including junior assistant physicians, should be allowed $480 per annum. All employees securing a salary of from $2,000 to $2,500 per annum, including assistant physicians, should receive an allowance of $600 per annum. All employees receiving a salary of from $2,500 to $4,000 per annum, including senior assistant physicians, clinical directors, director of laboratory and clinical psychiatrists, should receive an allowance of $780 per annum. An employee receiving a salary in excess of $4,000 should receive an allowance of $900 per annum. These allowances would be only to those whose contract or employment call for board, lodging, laundry, and medical attention in addition to regular salary.”

Thus you will see that at the time Congress passed directly upon the salary paid to the superintendent in 1920 it had before it the information showing that in addition to a salary of $7,000 per annum he was to receive full maintenance for himself and family, in the same quarters he is occupying to-day. The hospital is larger to-day, having more than 4,150 patients in its charge for treatment. The buying value of the dollar is much less than it was when the superintendent first came to the hospital. The act authorizing the readjustment of salaries, directing the payment of $7,000 per annum and maintenance to the superintendent is apparently still in force.

Congress specially authorized the construction of cottages at various portions of the grounds for the use of the medical staff. This medical staff and the other employees must live on the hospital grounds. They can not select quarters nor their location. The cottages when built were placed so that the physician in charge of each service would be in close touch with the patients under his care. As, for illustration, the physician in charge of the criminal and colored patients has a cottage located close to these patients. The physician in charge of the detached service has a cottage adjacent to that service. These physicians have children and the environment in a mental institution surrounded by insane patients is not a desirable one for bringing up children. The doctors are under the strain of worry over their families, which is perhaps in part offset by relief from the necessity of paying rent. In some cases conditions would render necessary the keeping up of two residences, one on the grounds and one outside, with incidental financial outlay. This is the actual condition with several employees at the present time. If conditions created result in the refusal on the part of the physicians to accept the responsibilities and hazards of the 24 hours' service, the hazards will of necessity be transferred to the patients and it does not seem that this was ever the intent of Congress. The primary object of the institution is, as stated, the most humane care and enlightened curative treatment of the insane. To carry out this purpose, set forth in the organic act, it is necessary to have physicians trained in psychiatry, and equipped to give the proper treatment and oversight to patients in their charge. The number of available physicians capable of doing this work is limited. The hospital at the present time, with the salaries received and the quarters furnished, has been able to build up a staff of physicians comparing favorably with that of any in similar institutions in the Government service and throughout the land. To carry out the intent of the law it must be the

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