DUPLICATION OF HOSPITALS

Mr. MUNRO. The duplication of the hospitals I covered last year, and we still take the same position. One fully equipped and staffed hospital on each side of the isthmus is sufficient from our people's standpoint. But those hospitals should be maintained, and operated under civilian regulations and not under military regulations.

Senator ELLENDER. On our recent visit it was pointed out to us that if all of the patients that were treated at the four hospitals during the last year were to be treated at the Gorgas Hospital, which is the largest hospital there, only 55 percent of that facility would be used. Senator CORDON. At any time?

Senator ELLENDER. That was based on the total for that year. In view of that, doesn't that mean that we might be able to do with one hospital rather than two?

Mr. MUNRO. Because of the inconvenience of getting across the isthmus, we do not believe so. In other words, if a child from the Atlantic side is hospitalized on the Pacific side it means the parents cannot visit him when they would like to, because you have a transportation problem. It is a drive across the isthmus of about 50 miles, and it is not the safest highway, according to our standards.

Senator ELLENDER. You know we have that same situation in the States. I know of some facilities that are many, many miles more than the distance from the Pacific side to the Atlantic side.

Mr. MUNRO. There is no doubt that that is true in a lot of places in the United States, but we only have one road which is in the Republic of Panama and that road is not the best or safest road to drive over, especially at night. It is subject to slides and closing. I do not believe it was closed last year, but the year before it was closed, and the year before that it was closed for almost a week.

Senator ELLENDER. On account of slides?

Mr. MUNRO. That is correct. The railroad transportation across there is very dubious. The schedules are not such that you can make your visitations and get home.

Senator ELLENDER. But the trains do run regularly; do they not? Mr. MUNRO. That is correct; but, according to the schedules, it would require the possible staying over in the evening, if you go over for a night visit, and the train schedule has been changed quite frequently in the last 3 or 4 years in their effort to get the railroad on a paying basis.

Senator ELLENDER. Are there any other duplications?

Senator YOUNG. Could I ask a question on the hospital matter before you leave it?

Senator ELLENDER. Yes.

Senator YOUNG. On the Pacific side which one would you close, the Gorgas Hospital or Clayton?

Mr. MUNRO. Clayton would be the one that would be closed on the Pacific side.

Senator YOUNG. Clayton is a beautiful hospital. Both of them are big hospitals.

Senator ELLENDER. During the emergency we had hospitals built there just the same as was tried at Fort Belvoir and Fort Dix and others. Somehow some of our Army people tried to use an emergency

to get permanent installations, and in this case they succeeded in getting these magnificent hospitals in the Canal Zone during the war. Senator YOUNG. Do you have any particular reason why you think Gorgas should be kept open over the military hospital?

Mr. MUNRO. It is the most convenient location for the civilian, and it is now under civilian administration.

Senator YOUNG. Principally because it is under civilian control? Mr. MUNRO. That is right. And I believe the plant has been modernized over the last 4 years.

Senator ELLENDER. The maximum capacity of Gorgas is so much greater than the other hospital, Clayton. I think Gorgas is around' a 1,200-bed hospital, and the other is five hundred-some-odd, as I remember the situation.

Senator DwORSHAK. Mr. Chairman, you will recall on the recent visit that Clayton Hospital was the third finest hospital installation that the Department of the Army has any place, including Hawaii or any other.

Senator ELLENDER. If there is any better one than that I would like to see it.

Senator THYE. Mr. Chairman, if the Clayton Hospital was closed what would become of the building, the equipment, and so forth?

Senator ELLENDER. Well, there was a hospital that was built at the same time that Clayton Hospital was built, and they converted that into a school where citizens from South America are trained to be Army officers. I presume that if this hospital were closed that they would find some use for it. You do not have to worry about it. But the point is, Senator, that by closing this hospital, as I recall the figures, that is, to close a hospital, as is now being proposed, it would save the Government $387,000 per year.

Senator THYE. That is true. Well, then, they are remodeling the civilian-controlled hospital right now and they have been remodeling

it.

Mr. MUNRO. I am not sure of any projected change for the future; they have brought it up to date in the last 4 years.

Senator THYE. The expense of remodeling that would come under the expense of the Canal Zone, would it not?

Senator ELLENDER. Yes. That has been done. They do not contemplate any more, do they?

Mr. MUNRO. Nothing in the future. It is complete.

INCONSISTENCY

Senator THYE. But the inconsistency of it, however, is that here you say the Clayton Hospital, Army controlled, is an excellent hospital, and the other hospital, which is civilian controlled has been under an extensive reconstruction or improvement of the facilities and the internal condition. And we don't know at what expense. Then we propose to close the Army hospital, and that building would have to be disposed of, or it would have to be under constant supervision expense. It seems rather as though someone has not been using good judgment when they discard or plan to discard Clayton, the Army hospital, and at the same time proceed to spend a lot of money improving the older structure that is under civilian control. It seems like a waste of money.

Mr. MUNRO. I would like to point out that I have never seen the Clayton Hospital, because the military installations are off limits for civilians.

Senator THYE. It comes under the supervision of the authority over the Canal Zone; it must come under that supervision, whether it is off limits to the civilian or what it is, and it still is an expenditure that has been authorized by the authorities in charge of the Canal Zone.

Senator CORDON. Is there anything further?

Mr. MUNRO. That is all I have.

Senator CORDON. Thank you, Mr. Munro.

Mr. DILWEG. I wonder if you would mind coming back at a later time? We have some witnesses from out of town, and it would help considerably.

Mr. LA VERNE DILWEG. I will be happy to accommodate the committee. You just tell us when and we will be happy to do that.

Senator CORDON. At that time your testimony will be put in the proper place in the record.

PANAMA CANAL EMPLOYEES

STATEMENT OF LA VERN R. DILWEG, ATTORNEY, FORMER MEMBER OF CONGRESS, ACCOMPANIED BY EMMET O'NEAL, ATTORNEY, FORMER MEMBER OF CONGRESS

PREPARED STATEMENT

Mr. DILWEG. My name is La Vern Dilweg. I am a former Member of Congress from Green Bay, Wis., and a practicing attorney in Washington at this time. My colleague with me is Mr. Emmett O'Neal, former Member of Congress, who served 12 years with the Appropriations Committee of the House and then was the Ambassador to the Philippines. I am sure, Senator, you know him very well.

In accordance with the instructions received by the clerk here, we are going to ask that our statement be placed into the record. We will attempt to give you a résumé rather than read the entire statement. Senator HAYDEN. The entire statement will be included in the record. We will be glad to hear you.

(The statement referred to follows:)

TESTIMONY PRESENTED BY THE UNITED STATES CITIZENS ASSOCIATION

My name is LaVern R. Dilweg, former Member of Congress, and practicing attorney in Washington, D. C. My associate is Emmet O'Neal, former Member of Congress, and attorney, who served on the House Committee on Appropriations and at present is located in Washington, D. C. The United States Citizens Association membership is composed of United States civilian citizens residing in the Canal Zone and we are acting as their counsel and Washington representatives. Many, if not all, of the members of USCA chose to establish a home in the Canal Zone upon representation from the United States Government that certain compensation would be given them including low rentals, free medical care and hospitalization, a 25-percent differential in pay, and other so-called fringe benefits. These provided the margin necessary for their needs and a way to prepare for old age after years of service in the tropics.

The Federal Government carried out its inducements approximately 40 years and thereby attracted and retained skilled United States workers for operation of the Panama Canal. Originally housing was free, then for many years only a nominal fee was charged for rent. Commodities and services sold by the canal

to get permanent installations, and in this case they succeeded in getting these magnificent hospitals in the Canal Zone during the war. Senator YOUNG. Do you have any particular reason why you think Gorgas should be kept open over the military hospital?

Mr. MUNRO. It is the most convenient location for the civilian, and it is now under civilian administration.

Senator YOUNG. Principally because it is under civilian control! Mr. MUNRO. That is right. And I believe the plant has been modernized over the last 4 years.

Senator ELLENDER. The maximum capacity of Gorgas is so much greater than the other hospital, Clayton. I think Gorgas is around a 1,200-bed hospital, and the other is five hundred-some-odd, as I remember the situation.

Senator DwORSHAK. Mr. Chairman, you will recall on the recent visit that Clayton Hospital was the third finest hospital installation that the Department of the Army has any place, including Hawaii or any other.

Senator ELLENDER. If there is any better one than that I would like to see it.

Senator THYE. Mr. Chairman, if the Clayton Hospital was closed what would become of the building, the equipment, and so forth?

Senator ELLENDER. Well, there was a hospital that was built at the same time that Clayton Hospital was built, and they converted that into a school where citizens from South America are trained to be Army officers. I presume that if this hospital were closed that they would find some use for it. You do not have to worry about it. But the point is, Senator, that by closing this hospital, as I recall the figures, that is, to close a hospital, as is now being proposed, it would save the Government $387,000 per year.

Senator THYE. That is true. Well, then, they are remodeling the civilian-controlled hospital right now and they have been remodeling

it.

Mr. MUNRO. I am not sure of any projected change for the future; they have brought it up to date in the last 4 years.

Senator THYE. The expense of remodeling that would come under the expense of the Canal Zone, would it not?

Senator ELLENDER. Yes. That has been done. They do not contemplate any more, do they?

Mr. MUNRO. Nothing in the future. It is complete.

INCONSISTENCY

Senator THYE. But the inconsistency of it, however, is that here you say the Clayton Hospital, Army controlled, is an excellent hospital, and the other hospital, which is civilian controlled has been under an extensive reconstruction or improvement of the facilities and the internal condition. And we don't know at what expense. Then we propose to close the Army hospital, and that building would have to be disposed of, or it would have to be under constant supervision expense. It seems rather as though someone has not been using good judgment when they discard or plan to discard Clayton, the Army hospital, and at the same time proceed to spend a lot of money improving the older structure that is under civilian control. It seems like a waste of money.

Mr. MUNRO. I would like to point out that I have never seen the Clayton Hospital, because the military installations are off limits for civilians.

Senator THYE. It comes under the supervision of the authority over the Canal Zone; it must come under that supervision, whether it is off limits to the civilian or what it is, and it still is an expenditure that has been authorized by the authorities in charge of the Canal Zone.

Senator CORDON. Is there anything further?
Mr. MUNRO. That is all I have.

Senator CORDON. Thank you, Mr. Munro.

Mr. DILWEG. I wonder if you would mind coming back at a later time? We have some witnesses from out of town, and it would help considerably.

Mr. LA VERNE DILWEG. I will be happy to accommodate the committee. You just tell us when and we will be happy to do that.

Senator CORDON. At that time your testimony will be put in the proper place in the record.

PANAMA CANAL EMPLOYEES

STATEMENT OF LA VERN R. DILWEG, ATTORNEY, FORMER MEMBER OF CONGRESS, ACCOMPANIED BY EMMET O'NEAL, ATTORNEY, FORMER MEMBER OF CONGRESS

PREPARED STATEMENT

Mr. DILWEG. My name is La Vern Dilweg. I am a former Member of Congress from Green Bay, Wis., and a practicing attorney in Washington at this time. My colleague with me is Mr. Emmett O'Neal, former Member of Congress, who served 12 years with the Appropriations Committee of the House and then was the Ambassador to the Philippines. I am sure, Senator, you know him very well.

In accordance with the instructions received by the clerk here, we are going to ask that our statement be placed into the record. We will attempt to give you a résumé rather than read the entire statement. Senator HAYDEN. The entire statement will be included in the record. We will be glad to hear you.

(The statement referred to follows:)

TESTIMONY PRESENTED BY THE UNITED STATES CITIZENS ASSOCIATION

My name is LaVern R. Dilweg, former Member of Congress, and practicing attorney in Washington, D. C. My associate is Emmet O'Neal, former Member of Congress, and attorney, who served on the House Committee on Appropriations and at present is located in Washington, D. C. The United States Citizens Association membership is composed of United States civilian citizens residing in the Canal Zone and we are acting as their counsel and Washington representatives. Many, if not all, of the members of USCA chose to establish a home in the Canal Zone upon representation from the United States Government that certain compensation would be given them including low rentals, free medical care and hospitalization, a 25-percent differential in pay, and other so-called fringe benefits. These provided the margin necessary for their needs and a way to prepare for old age after years of service in the tropics.

The Federal Government carried out its inducements approximately 40 years and thereby attracted and retained skilled United States workers for operation of the Panama Canal. Originally housing was free, then for many years only a nominal fee was charged for rent. Commodities and services sold by the canal