WEDNESDAY, JANUARY 14, 1948. THE UNITED STATES SOLDIERS' HOME STATEMENTS OF MAJ. GEN. H. K. LOUGHRY, GOVERNOR; COL. D. C. CORDINER, DEPUTY GOVERNOR; MISS MARY R. POWDERLY, CHIEF CLERK; WALTER E. MARLOW, JR., BUDGET CLERK; WILLIAM P. PUGH, HOSPITAL STEWARD; AND A. M. KRUSE, OFFICE OF CHIEF OF ENGINEERS EXPENSES, UNITED STATES SOLDIERS' HOME (TRUST FUND) Mr. ENGEL. We will now take up the justifications for the United States Soldiers' Home. We have here Maj. Gen. H. K. Loughry, Governor, and a group from the Home to justify these estimates. General Loughry do you have a general statement to make first? General LOUGHRY. A short one. Mr. ENGEL. You may proceed. GENERAL STATEMENT General LOUGHRY. The estimates for the fiscal year 1949 total $2,435,000 which is $24,900 greater than the appropriation of $2,410,100 for the current fiscal year. The amounts by projects are summarized on page 1004 of the justifications and I propose to explain, during the hearings, the reasons for the increases in each one of them so far as the committee may desire. SUMMARY OF PROJECTS Mr. ENGEL. We will insert in the record at this point page 1004, being the summary of the projects referred to. (The matter referred to is as follows:) PRINCIPAL INCREASES REQUESTED FOR 1949 General LOUGHRY. The principal increases are in four projects which may be summarized at this time. Project 14, hospital, increase of $107,888: Increases in the number of attendants to provide for a 40-hour week; increases in the salaries of attendants in order to bring them more nearly in line with those of Veterans' Administration employees; increased cost of surgical, medical, and dental supplies. Project 24, grounds, increase of $23,800: For nonrecurring items as follows: Project 26, permanent improvements, increase of $150,579: The Congress has previously appropriated $396,000 for the preparation of architectural plans for permanent improvements at the Soldiers' Home. Estimates in the amount of $10,076,000 for actual construction were included in the justifications submitted to the Bureau of the Budget for the fiscal year 1949 but, with one exception of $446,579, these estimates were disallowed as a matter of executive policy. The amount allowed, as set forth on page 1075 of the justifications, is to provide for a comprehensive rehabilitation of the electrical supply and distribution system of the home. This work, in the opinion of the technical representatives of the Chief of Engineers and the Bureau of the Budget, is urgently necessary. Project 32, commissary, increase of $28,700: For increased cost of rations. The foregoing increases are largely offset by the elimination of nonrecurring items for which appropriations were made during the current fiscal year. STATUS OF UNITED STATES AIR FORCE It has been determined, by the administrative authorities concerned, that all laws and administrative regulations now applicable to personnel of the United States Army in relation to the Soldiers' Home are equally applicable to personnel of the United States Air Force. Consequently, warrant officers and enlisted men of the Air Force will continue to be eligible for membership in the Soldiers' Home. Capacity of the home: The maximum capacity of the home is 1,543. The membership, present and absent, on January 7 was 1,540. As of that date there were 176 eligible applicants on the waiting list. Attrition for the fiscal year 1947 averaged 56 per month. Consequently, an eligible applicant now has to wait a little over 3 months from date of application until his admission. Mr. ENGEL. Does that complete your statement? General LOUGHRY. Yes, sir. Mr. ENGEL. General Loughry, you only take regulars into the home? General LOUGHRY. Yes, sir; only former active members of the Regular Army. Mr. ENGEL. Up until 1939 we had an Army of about 300,000. That was the most we had up to the beginning of the war; was it not? General LOUGHRY. My recollection is that until 1939 the enlisted strength of the Regular Army was about 165,000. It was further increased in the fiscal year 1940 and, of course, it was greatly augmented after the outbreak of war. EFFECT OF INCREASE IN SIZE OF ARMY ON TRUST FUND Mr. ENGEL. And now we have a Regular Army of a million, almost four times that number, and, naturally, you are going to have four times the amount of funds available from the deductions made. Undoubtedly, you will have increased demands accordingly from people who will want to come into the home. General LOUGHRY. In future years. Mr. ENGEL. Yes, sir, in future years. Now, this money that you have in here for new construction is already in the trust fund; is it not? General LOUGHRY. That is right. Mr. ENGEL. How much money do you have in the trust fund now? General LOUGHRY. On January 7 the amount in the trust fund was $23,408,974. Mr. ENGEL. How much did you have in that trust fund in 1939, approximately? General LOUGHRY. Approximately $3,000,000. The trust fund has increased from $3,000,000 to $23,000,000 Mr. ENGEL. Due to the increase in the size of the Army and to the contributions to the fund? General LOUGHRY. Due to the increased strength of the Regular Army. Mr. ENGEL. And you use the income from that trust fund in defraying the expenses of the home? General LOUGHRY. Yes, sir. Mr. ENGEL. What was the income during the past year from that trust fund? General LOUGHRY. About $7,000,000. Mr. ENGEL. $7,000,000, which is more than twice the actual cost of the operation of the home? General LoUGHRY. That is correct. Mr. ENGEL. The appropriation requested in here does not come off of the taxpayers, but it comes out of this income from the trust fund; is that right? General LOUGHRY. Yes, sir. ADEQUACY OF CONSTRUCTION PROGRAM TO PROVIDE FOR FUTURE MEMBERSHIP Mr. ENGEL. Do these new plans that you are making, that you refer to about expansion, take into consideration the required expansion of the Soldiers' Home to take care of these extra or additional members who will probably come in later? General LOUGHRY. It is my judgment that this improvement program, including new barracks with a capacity for 850 members, and also a new hospital, will take care of all applicants for membership in the Soldiers' Home for the next 10 years, perhaps longer. COST OF NEW UNITS Mr. ENGEL. What will be the cost of those two units? General LOUGHRY. The total cost of the program as presented to the Bureau of the Budget was $10,076,000. Mr. ENGEL. That included what in addition to the barracks and the hospital; can you give us a break-down of that? General LOUGHRY. Yes, sir. Mr. ENGEL. Just give it roughly, and then insert it in the record later. General LOUGHRY. New barracks with a capacity of 850 members at an estimatedcost of $5,046,000. The estimated cost of the new hospital is $2,630,000. The expansion of the hospital will require the adjustment of certain facilities there, at an estimated cost of $145,000. A farm dormitory for civilian employees, $150,000. For electric utilities, $495,000; heating utilities, $587,000; water supply, $195,000; sanitary sewers, $145,000; storm sewers, $70,000, and site adjustment, $288,000, making a grand total of $10,076,000. EFFECT OF REDUCTION OF TRUST FUND Mr. ENGEL. Would you have adequate revenues to operate the home on the new basis if the trust fund were reduced from $23,000,000 down to approximately $13,000,000? General LOUGHRY. Yes, sir. Mr. ENGEL. Of course, you are getting increased revenue annually because of the increased size of the Army, is that right? General LOUGHRY. That is right. As to what that increased revenue will be in the future is uncertain, depending on the size of the Regular Army. ANNUAL INCOME TO TRUST FUND Mr. ENGEL. How much do you get a month out of the Regular Army; it is so much a soldier, is it not? General LOUGHRY. We are getting about $7,000,000 a year from all sources. Mr. ENGEL. Yes, a year, but it is 10 cents a month for each soldier, is that right? General LOUGHRY. Yes, sir. Mr. ENGEL. That amounts to $7,000,000 a year? General LOUGHRY. The anticipated receipts from withheld pay for the fiscal year 1948 is estimated to be about $1,000,000. It is estimated that receipts from all sources will be about $7,000,000. Mr. ENGEL. Just insert a copy of that in the record at this point and then comment on it. (The matter referred to is as follows:) Estimated credits to the permanent fund, U. S. Soldiers' Home, fiscal year 1948 Court martial fines. Dishonorable discharges. Forfeitures by desertion. Effects of deserters. Effects of escaped military prisoners. Withheld pay (act of February 13, 1936) Bequests Miscellaneous sales_ Estates of deceased soldiers transferred by Treasury Department. Interest on permanent fund....... Total estimated credits---- Balance in permanent fund June 30, 1947. Estimated credits during fiscal year 1948 Total.. Withdrawals during fiscal year 1948. Estimated balance in permanent fund June 30, 1948Estimated net increase during fiscal year 1948... 70546-48 -9 $5, 000, 000. 00 320, 000. 00 16, 000. 00 400. 00 4, 400. 00 989, 520. 00 7, 000. 00 23, 000. 00 62, 000. 00 750, 000. 00 7, 172, 320. 00 22, 001, 350. 72 7, 172, 320. 00 29, 173, 670. 72 2, 410, 100. 00 26, 763, 570. 72 4, 762, 220. 00 |