of the comptroller's suggestions in his letter to you would be practically to reduce the salaries of all those affected by the amount that would be subtracted for their maintenance. This would tend to throw the hospital immediately into competition with the State hospital services throughout the country for its personnel, and inasmuch as it is almost impossible now to get physicians who are competent in this line of work and inasmuch as every institution in the country is short more or less seriously of adequate officers and employees, to increase the size of the field of competition must needs ultimately have its effect upon the care and treatment of the patients. Therefore, it is sincerely hoped that on behalf of the institution and its patients some way will be found to maintain the present state of affairs and to avoid the dangers which would confront the institution if the comptroller's idea was carried into effect.

Very respectfully,

M. SANGER, Assistant to the Superintendent.

(Reply was made to the Secretary, by the General Accounting Office, on October 11, 1928, as follows:)

COMPTROLLER GENERAL OF THE UNITED STATES,
Washington, October 11, 1928.

The SECRETARY OF THE INTERIOR.
SIR: There has been received your letter of September 22, 1928, with refer-
ence to decision of this office dated August 15, 1928, to the effect that, under
existing law, the value of quarters, subsistence, and other allowances furnished
in kind to officers and employees of St. Elizabeths Hospital should be deter-
mined and such value included as a part of the basic salary, pay, or compensa-
tion for the positions, on the basis of which retirement deductions are computed,
and for the purpose of determining whether the cash salary paid is in excess of
that authorized by law. The concluding paragraphs of your letter are as
follows:

"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."

This office can not accept the view you advance that the Congress has heretofore expressly or impliedly sanctioned or approved the furnishing of the various allowances referred to in my decision of August 15, 1928, to the extent there set forth and free of charge or without being considered as a part of the compensation of the officers or employees under St. Elizabeths Hospital. And while this office would be disposed to permit a postponement of the final adjustment of the salaries of the officers and employees involved until the Congress shall have had an opportunity to give consideration to the matter it is suggested for your consideration whether there are not now being furnished to certain of the personnel allowances which should be immediately discontinued, such as servants, automobiles, laundry service, personal telephone service, etc., leaving for continuance pending presentation of the matter to the Congress, only such allowances as may be generally classed as bed and board; that is, rooms and meals. Your views in this connection are requested.

Respectfully,

J. R. MCCARL,

Comptroller General of the United States.

(The Secretary of the Interior made further reply under date of October 31, 1928, as follows:)

DEPARTMENT OF THE INTERIOR,

OFFICE OF THE SECRETARY,
Washington, October 31, 1928.

The COMPTROLLER GENERAL,

Washington, D. C.

DEAR MR. COMPTROLLER GENERAL: Your letter of October 11, 1928, with reference to quarters, subsistence, and other allowances furnished in kind to officers and employees of St. Elizabeths Hospital, was duly received, and your statement that you will be disposed to permit of postponement of the final adjustment of the matter until Congress shall have had opportunity to consider it is very much appreciated.

In view of your further suggestion, however, that it might be well to immediately consider and discontinue certain allowances, such as servants, automobiles, laundry service, personal telephone service, etc., your letter was referred to the hospital for consideration and report, and I inclose copy of report of the assistant to the superintendent, in which he discusses specifically the items to which you referred.

Under the circumstances, and as Congress will convene in a very short time, this department would appreciate your postponement of final adjustment of these matters for the time being and until they may be considered by Congress, and I so request.

Very truly yours,

E. C. FINNEY, First Assistant Secretary.

(The information requested by the committee was thereafter, on December 22, 1928, supplied by the Comptroller General, as follows:)

COMPTROLLER GENERAL OF THE UNITED STATES,
Washington, December 22, 1928.

Hon. WILLIAM WILLIAMSON,
Chairman Committee on Expenditures in the

Executive Departments, House of Representatives.

MY DEAR MR. CHAIRMAN: In connection with the submission of my statement before your committee on December 19, 1928, in re value of quarters and other allowances furnished certain officers and employees at St. Elizabeths Hospital, I was requested by the committee to furnish a supplemental statement showing any authority of law for furnishing the superintendent of the institution with any of the items of allowances listed in decision of the Comptroller General dated August 15, 1928, and also to furnish the committee, for purposes of comparisen, a chart or tabulation showing what the superintendents of other governmental institutions receive in the way of salary, quarters, etc.

Both the statement in re authority of law and the chart or tabulation are inclosed herewith.

With respect to the former you will note that the statutes legalizing, or authorizing, the furnishing of quarters or other allowances in kind are quoted, the application made to the items of allowances listed in the decision of this office, and a summary is furnished showing the particular items authorized and the particular items not authorized by existing law.

The chart or tabulation shows the names of the hospitals under the Veterans' Bureau, the Navy, the Army, and the Public Health Service; the bed capacity; the name and rank of the officer in charge, his total pay or salary rate; the gross compensation, deductions for quarters, subsistence, and laundry; and the net compensation, together with certain explanatory remarks. There are attached also tabulations showing in detail the conditions with respect to such matters at Veterans' Bureau hospitals.

Although my report submitted May 19, 1928, referred only to a civilian branch of the Government and to laws relating to officers and employees in the civilian branch of the Government, pursuant to the specific request of the committee there has been included in the chart or tabulation the salary rates, quarters, etc., of officers in charge of Army and Navy hospitals which are controlled by other statutes in terms other than appearing in the statutes governing the payment of salary and furnishing of quarters to officers and employees in the civilian branch of the Government. Reference to the chart or tabulation will

show that under the Veterans' Bureau, which is a civilian branch, the value of quarters and other allowances in kind to the officers in charge of the hospitals has been determined and deducted from the total salary rate as required by law. With respect to the Army and Navy the hospitals usually are in charge of a colonel (Army) or captain (Navy); and under the laws relating to the pay and allowances of such officers, the maximum which either may receive in pay and allowances (quarters and subsistence) is $7,200 a year. That is to say, if the officer is not furnished quarters or subsistence in kind his entire gross compensation may not exceed $7,200 a year. If he is furnished quarters in kind (the maximum authorized allowance of which is seven rooms), the maximum amount that he could then receive would be $6,000 as salary, plus a cash subsistence allowance of $438 a year, or an aggregate compensation of $6,438 and a 7-room house. The Army and Navy do not furnish subsistence in kind to officers living in Government quarters, neither are Army and Navy officers entitled to be furnished laundry or servants at Government expense.

Sincerely yours,

J. R. MCCARL, Comptroller General of the United States.

do..
Commander.
Captain...

Captain...

6,000

762

438

7, 200

762

438

6,000

762

438

7, 200

4,900 6,000

1,440

657

6, 997

762

438

7, 200

Total.

Pay and allowances of a captain, U. S. Navy, not to exceed $7,200 per annum (act June 10, 1922, 42 Stat. 628).