Quarters and Allowances at St. Elizabeths Hospital

The CHAIRMAN. Without objection, gentlemen, we will proceed with the hearing on St. Elizabeths Hospital. At our last meeting a motion was made, seconded, and passed by the committee, directing an investigation into the conditions existing at St. Elizabeths Hospital, particularly with reference to the matter of quarters, subsistence, and help allowed to certain employees of that institution, which it was believed, by some members of the committee, were furnished contrary to law. I have not had the time to investigate the question to any considerable extent; but I think the question involved is largely a legal one, under existing law, as to whether or not the superintendent and certain other employees can be allowed these extras without having a value placed on them and a proper deduction made from their salaries. The other question that arises is whether, under the circumstances, an exception should be made in this particular institution, because of the conditions which exist there and the necessity for these employees to live at the institution in order properly to care for the inmates. If such an exception is to be made, legislation would appear necessary.

With that preliminary statement, we will first hear the comptroller briefly on how this matter arose in his office and what action he has taken. The Comptroller General may proceed.

STATEMENT OF HON. J. R. M'CARL, COMPTROLLER GENERAL OF THE UNITED STATES

(Digest of testimony given on December 19, 1928, by Hon. J. R. McCarl)

Comptroller General McCarl in a verbal and written statement submits testimony in support of his ruling that under the present general law officers and employees at St. Elizabeths Hospital are not exempt from salary deductions for quarters and subsistence in kind.

He points out the laws considered applicable and controlling and states that the General Accounting Office has deferred action on the matter at the request of the Secretary of the Interior pending a study of the situation by Congress to determine whether or not an exception to the general law with reference to these employees is justified.

He contends that exemption because of hazardous service must be predicated on the law and declares that the failure of the Personnel Classification Board to classify these employees does not justify approval of the accounts by the General Accounting Office.

He advises the committee that the cases of officers and employees at St. Elizabeths are not the only ones in which it has been asserted that injustices will result from enforcement of the law.

He appends correspondence in connection with the ruling and a tabulation showing what superintendents of other governmental hospitals receive in way of salary, quarters, etc.

Mr. McCARL. Mr. Chairman and gentlemen of the committee, at the time your chairman suggested to me that I might be of some assistance to the committee I did not know just what the committee had in mind. Naturally one thinks first of his own problems, and recalling that the General Accounting Office had deferred action on certain accounts because of a request made by the Secretary of the Interior that the matter under consideration be deferred until the Congress could be asked to take action for the relief of certain officers and employees of St. Elizabeths Hospital I immediately concluded that in all probability the matter intended to be taken up by the committee was that of determining whether or not the Congress would be justified in making an exception to the general law with reference to these particular employees. And it seemed to me that I might be able to help the committee get to the problem as it confronts us and as it confronts the Secretary of the Interior and necessarily confronts these gentlemen and ladies, by mapping out, as shortly as I could, just how the problem arose in the General Accounting Office, the laws that were considered applicable and controlling, and the problem that confronted us at the time we agreed with the Secretary of the Interior that it would be proper, in the circumstances, to defer further action until the Congress could study the particular situation in which these officers and employees find themselves and determine whether they wish the general law to proceed or to make some exception in their and possibly other cases where it is claimed injury will result. I have prepared a statement which it seemed to me would best aid the committee in seeing the problem from our angle and in getting them, perhaps, in a proper position to listen to the affected officers and employees-their situation and their difficulties-so as to determine whether or not there should be any exception made. This seemed to me particularly true in view of what occurred in the House of Representatives by striking out a provision in an appropriation bill which was intended, I believe, to give them relief. If the committee will permit me, I will read what I have prepared.

IN RE VALUE OF QUARTERS AND OTHER ALLOWANCES FURNISHED CERTAIN OFFICERS AND EMPLOYEES AT ST. ELIZABETHS HOSPITAL

The matter of the value of quarters and other allowances furnished in kind to civil officers and employees of the Government is of concern to the accounting officers of the United States because of their duty and responsibility to see that the amounts required by law to be deducted from compensation and deposited to the credit of the retirement fund are so deducted and deposited, and in addition, to see that the maximum salary rates authorized by law are not exceeded.

To ascertain the amount required by law to be deducted from compensation of an officer or employee for deposit to the credit of the retirement fund the facts supplied the accounting officers in support of disbursing accounts must show not only the amount paid in cash, but in addition, the determined value of quarters and other allowances furnished the officer or employee in kind and in lieu of cash. This information must also appear to enable the

accounting officers to ascertain that the maximum salary rates prescribed by law are not being exceeded.

Previous to the fiscal year 1927 many officers and employees of the Government were being furnished quarters, subsistence, and other allowances, without statutory authority therefor. Other officers and employees were being furnished such allowances in kind under general or special authority of law, and in this latter class were certain officers and employees at St. Elizabeths Hospital.

Mr. COLTON. Did they come under a special, or the general law? Mr. McCARL. I do not recall which; but under one or the other. I think there is no question but what prior to the enactments hereinafter mentioned by me, they were provided with quarters and subsistence.

The CHAIRMAN. At St. Elizabeths?

Mr. McCARL. Yes.

Mr. SCHAFER. Under those acts, were they also provided with servants, such as the four servants the superintendent has to-day according to your decision?

Mr. McCARL. I do not recall that, just what the provision was, and that did not seem to me to be important here as I understood what was to come up. I do not recall particularly on that; I do not recall what laws were applicable to them, but I recall very distinctly that, in the consideration of the matter, it became apparent they were entitled to certain allowances including quarters. And that being the major item, I had my mind principally on that. Mr. DALLINGER. Would "quarters" include "servants"? Mr. McCARL. I would not think so.

Mr. SCHAFER. The amount allowed for servants which has been used by the superintendent is far in excess of the amount allowed for quarters; it is almost equal to the amount allowed for subsistence and quarters. What I want to find out is whether there is any provision of law for making that allowance for servants.

Mr. McCARL. I would be glad to supplement this by making an examination of the prior laws with a view to letting you know what the laws were prior to the acts applicable here, the classification act, supplemented by the act of March 2, 1926, about which I am particularly concerned in this statement. But I would be glad to supplement that if you wish it and bring together, if you please, a compilation of the laws under which they were permitted allowances, if that would be of service to the committee.

Mr. SCHAFER. Yes.

Mr. McCARL. But I was trying in this statement to present my particular and present difficulty. In neither class, however, where the officers and employees so furnished with quarters or other allow ances in kind charged for such allowances in kind, nor was any accounting whatever made for this use of Government property. Practically all of these officers and employees who received allowances of substantial value, whether or not specifically authorized by law, apparently were also being paid in cash at the same, or approximately the same, rate of compensation as other officers and employees in positions of similar grade who received no free allowance in kind. Because of the obvious inequality and injustice of this situation, both to the officers and employees who received no allowances and to the Government, the situation was called to attention by the accounting officers and was promptly given consideration by

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