priated funds that Congress has appropriated for the beginning of that project. I think it is a $27 million project eventually and Congress has appropriated enough money to put in the basic utilities, to pay for the land and get ready to put up the buildings. Senator HAYDEN. It is high time they got rid of these old disgraceful hospitals in the District; there is no question about that. Senator ELLENDER. Congress has been wrestling with that problem for 7 or 8 years and I have been opposed to some of it because it strikes me that the hospital in the District ought to be paid for by the people in the District the same as we do in our States. But here we are more or less being asked to foot the whole bill. I believe that is what is going to eventually happen. With regard to this purchase of land there, I am familiar with your land and I wish I had a few acres of it myself and I do not blame you for getting value received for it. You deserve it and I would not let them take advantage of it. If I can do anything to prevent that you can count on me. Senator HAYDEN. As to this proposed headquarters for the Veterans' Administration, Congress has done nothing about that, appropriated no money and you have had no compensation as yet for that third tract of land? General HAISLIP. No, sir. Senator HAYDEN. That has simply been transferred to General Services Administration with the understanding that some time you will be paid for it. General HAISLIP. Yes, sir. Senator ELLENDER. It has not been used yet, has it? General HAISLIP. No, sir. Senator ELLENDER. I do not suppose it will until the title is perfected. I hope they won't be bold enough to proceed with the erecting of buildings until they have satisfied the old Soldiers' Home folks there. General HAISLIP. We hope to reach an amicable settlement with General Services Administration on a fair value for this land. Senator ELLENDER. With reference to this acreage which you stated was donated, that in a measure improves the property; it is to run streets through? General HAISLIP. I don't think it improves our property any, but it certainly improves the traffic situation in Washington. We did that as a public responsibility. Senator ELLENDER. It increases the value of the property if later you want to sell another portion of that land if you desire to. General HAISLIP. It might, but it puts a gash right through our property. We did it as a public service because the land forms such a bottleneck now. Senator ELLENDER. Are these 122 acres and 634 acres for public use? General HAISLIP. For the District, for highway use. The authorities of the home felt that should be done. We really had a responsibility to try to help the situation which we were causing. Senator THYE. You may proceed. MEMBER LOAD General HAISLIP. Funds provided to operate the Home during fiscal year 1954 made provision for an average member load of 1,556, including a daily average of 360 patients in the hospital, and provides for an average of 854 employees, of which 371 are required to staff the hospital. The estimates for fiscal year 1955 are based on an average member load of 1,732, an increase of 176, including a daily average of 400 patients in the hospital, an increase of 40. It also provides for an average of 969 employees, of which an average of 453 will be required to staff the hospital. This represents an increase of 115 employee years, 82 of which are required by the new addition to the hospital. MEDICAL SERVICE The medical service is one of the most important activities of the Home as experience indicates that the patient load of the hospital will vary between 20 and 25 percent of the membership of the Home. There has been a steady improvement in the medical services of the Home. The affiliation of the Home Hospital with the Army Medical Center in the training of medical residents and internes has continued to raise the standard of care and treatment of patients. The provision of social and recreational workers for the hospital has added much to the comfort and morale of patients, many of whom will spend the remainder of their lives in the hospital. At the request of the Home, the management experts of the office of the Surgeon General of the Army made an extensive survey of the hospital last spring. As a result a number of improvements have been made in the organization and administration of the hospital. 1955 BUDGET ESTIMATE I would like to call your attention again to the fact that the request for fiscal year 1955 of $5,134,000 now being considered by this committee, is not included in the total of the President's budget. As has been stated already, funds appropriated by the Congress for operation of the Home are taken from the Soldiers' Home permanent fund, which is a trust fund, and not from the general fund of the Treasury. When I appeared before this committee last year to defend our estimates for the fiscal year 1954, it was anticipated that the new domiciliary building would be completed and ready for occupancy on the first of August 1953, and our estimates were based on that date. I regret to have to report to the committee that we have not yet occupied the new building and do not expect to be able to move into it prior to March 1 of this year. A series of strikes last summer and fall set back the completion date, and delays in receipt of certain equipment and supplies set back the date still further. I may say that the committee provided funds for the operation of the new building from August 1, 1953. Because of the delay, I have already turned in savings amounting to $73,982, and our estimated obligations for fiscal year 1954 as shown in the budget now before you have been reduced by this amount. I will turn back all additional savings to the permanent fund of the Home, as I intend to adhere strictly to the purposes for which the funds were provided and will not use them for any other purpose. It was also anticipated that the date for beneficial occupancy of the 210-bed nursing unit as an addition to the hospital would be March 20, 1954. While construction is slightly ahead of schedule, I still believe that that date is a safe and proper one. I will insert in the record a table showing the new membership capacity of the Home after occupancy of the new buildings. The table shows a net gain of 318 in the domiciliary area and 71 in the hospital area. (The information referred to follows:) Member capacity after occupancy of new buildings about Mar. 20, 1954 150 additional beds are available in the hospital area for isolation purposes, contageous diseases, and epidemics. These are reserve beds. COST OF OPERATION In presenting the 1955 budget estimates to the committee for their consideration, attention is invited to the fact that the estimates amounting to $5,134,000 exceed the amount appropriated for the fiscal year 1954 by $479,000. By obligation, fiscal year 1955 is $346,102 less than fiscal year 1954. However, if we leave our capital improvements, we find that the cost of day-to-day operation for fiscal year 1955 is $321,900, greater than for fiscal year 1954. This increase is due largely to the fact that operation of the new buildings is on a 12 months' basis for fiscal year 1955 and on a part year for fiscal year 1954. The major increases and decreases in day-to-day operation in fiscal year 1955 estimates compared with fiscal year 1954 are as follows: 1. Personal services: There is a net increase in this category of $255,248, which is due almost entirely to provision on a 12 months' basis of the additional employees authorized for a part year in fiscal year 1954 to staff the new domiciliary building and the new hospital ward wing and to increase the number of present positions generally in housekeeping and maintenance categories required by the new buildings and the increased member load. In addition, 3 new positions are requested for the expanding powerhouse and 1 new member position in the clothing storehouse. 2. Rents and utility services: The increase of $28,436 is due almost entirely to the net additional electric current required for the operation of the new buildings for the full year 1955. 3. Other contractual services: A net increase of $17,970 is due to recurring items such as maintenance contracts for the full year 1955, and for painting and roof repair. Due to the increased member load and occupation of new buildings for a full year, there are increases in payment to nurses, Army hospitals, contracts for dentures and spectacles. Increases are offset somewhat by a lower level of normal maintenance activity in fiscal year 1955. 4. Supplies and materials: Increases for this object classification amount to $34,829 and are primarily due to a request for rations for the increased member load for a full year. The remaining increases are due to the necessary purchases of supplies heretofore furnished from surplus stocks now exhausted and for increased cost and use of supplies. In project 24, page 32 of our estimates, we request $3,000 for road materials and state: "Decrease in requirements due to removal of certain roads will be offset by increased requirements due to raising level of roads in connection with new curbs and gutters." The statement is not clear with respect to removal of certain roads. What is meant actually is that certain former macadam roads were replaced by concrete roads, thus reducing the requirement for maintenance road material. SURPLUS BUTTER Senator HAYDEN. Speaking of surplus stocks which you say are now exhausted, did you obtain eggs and butter and things of that kind? General HAISLIP. We are getting butter right now, Senator. The Army is being furnished a certain percentage of surplus butter at quite a reduction in cost. Forty percent of our butter requirements now are composed of the surplus butter which we get at reduced cost. Senator ELLENDER. How much do you pay for it? General HAISLIP. Eighteen cents a pound for surplus butter. General HAISLIP. Yes. Against 72 cents a pound for commercial butter. So that is a considerable saving. Senator ELLENDER. And a loss to the Government, however. A saving to you, but a loss to the Government. General HAISLIP. That is true. MEAT PURCHASES Senator HAYDEN. How about meat? General HAISLIP. We purchase practically all of our meat from the Quartermaster General of the Army. We get that at his contract prices. We call for it at his warehouses and bring it to the home. Senator HAYDEN. I understood there was a certain amount of slaughter undertaken throughout the United States to move surplus cattle, that the Army got a part of that. General HAISLIP. I have not heard of our getting any of that. General HAISLIP. Butter is the only item I know we have gotten. That is a big help. 5. Equipment: Purchase of normal replacements is reduced by $16,319 in fiscal year 1955. In this item, I would like to call your attention to a request for $5,000 to purchase a new bus to replace an old bus which has a very important function in the home. The present bus was given to us as war surplus and was classified at that time as unserviceable. Records maintained at the home show we have been averaging 3.8 miles per gallon of gas at a cost per mile of $0.23. The overall average of Government-operated buses is 6.1 miles per gallon at an average cost of $0.10 per mile. I believe this comparison indicates that our present bus should be replaced. 6. Miscellaneous: There are small increases and decreases resulting in a net increase of $1,736 in other normal operational activities. CAPITAL IMPROVEMENTS A comparison of funds for capital improvements shows a total increase of $231,082. Major increases and decreases for this purpose are as follows: 1. Other contractual services: During the fiscal year 1955 we hope to accomplish a number of maintenance projects which are $77,713 in excess of the major maintenance activities for which funds were appropriated in fiscal year 1954. These include replacing the present cobblestone gutters with cement curbs and gutters, grading the hospital courtyard, replacing dangerous electric wiring in various buildings, installing street lighting standards in the hospital area, renovation of the heating system and replacement of the storm water system in the Grant Building, and installing aluminum jacket coverings on heating pipes in the north tunnel. In fiscal year 1954 there was provided $30,000 for moving personnel and equipment to the new buildings. That sum will complete that project so no funds for the purpose are asked for in those estimates. That is a one-time job and it will be completed with funds now available. 2. Equipment: Offsetting somewhat the increases under capital improvements is a decrease of $46,631 in the purchase of equipment in fiscal year 1955. Funds for the purchase of the majority of the equip |