Evening star., 1937-12-08
M'CARRAN TO PUSH.
HEALTH GIFT QUIZ.
Senator Receives Letter
From Head of H. Ole.
Defending Action.

i uI 1lludhy Ny l1aS oCiooS
Appropriations Committee into the
authority of the Home Owners Loan
Corp to allocate $4,000 of its funds
toward the voluntary group health
plan of its employees will be sought
by Senator McCarran, Democrat of
Nevada.
Senator McCarran made known his
intention to pursue the matter further
after receipt of letter yesterday
afternoon from John H. Fahey, chair
man of the board of H. o. l.. c.,
defending the group health allotment.
Mr.. Fahey's letter cited a number
of arguments in support of the allot-
ment, including the following: That
the genera counsel of H. o. L. c.
had upheld the legal right of the
agency to GO into the matter; that
H. o. l.. C. has <not operated on
congressional appropriations, its cap
ital stock having been obtained
through the Reconstruction Finance
Corp; that the law creating the
agency gave it authority to determine
its necessary expenditures and how
they should be incurred without regard
to other laws governing public expen-
ditures; that the efficiency of low-paid
employees is affected by doctor and
hospital bills.
Not Debating Its Merits.
Senator McCarran, who emphasized
he is not debating the merits of the
group health movement, but only the
question of whether authority existed
for the use of public or quasi-public
funds for the purpose, probably will
not have an opportunity to discuss
the question in the Appropriations
Committee until the regular January
session. Commenting on the H. o. L..
c. explanation, the Nevada Senator
said:
IF that is permissible, it is by act
of Congress, and no agency has the
right to use either public or quasi
public funds unless Congress author
izes it, however worthy the object. If
the object is worthy, it was worthy
of being presented to Congress.
I'VE have either a government by
Congress or by bureaus. The former is
my understanding of our governmental
set-up. If bureaucratic agency can
thus set itself up and use public money
or moneys of a public nature without
congressional authorization, then there
is no limit to which such bureau
cannot go, and the functions of Con-
gress have been entirely usurped.
Full Investigation.
"I am saying nothing as to the
merits or dement's of the group health
movement. Assuming it is meritorious,
then there is all the more reason why
Congress should have teen advised of
its merit and WorthineSs, and had an
opportunity to do that which only
Congress has the right to do, appro-
pirate or allocate public funds. When
the matter comes before the Appro-
priations Committee, I intend to &c
into it fully"
Chairman Fahey's letter began by
telling how the agency'S personnel de-
partment had studied the cost of sick
leave, the effect of illness on efficiency
and the effect on efficiency of indebt-
edness incurred for doctor and hospita,
bills,
The report to the board was that
these conditions were serious and eX-
pensive, and the most careful consider
alton was given to the question" the
letter continued. 1T must be recalled
in this connection, that the great ma
jority of the employees Of the Home
Owners Loan Corporation are very
low-paid people, and frequently are
unable to obtain in the ordinary course
adequate medical and hospital service
and frequently find themselves unduly
and hopelesSly involved in debt on ac-
count of emergency and inescapable
medical and hospital expenses, and
these affect efficiency at work.
Cites Emergency Rooms.
Mr.. Fahey pointed out that for a
number of years H. o. L. C. has MAIN
tanned emergency rooms for those be-
coming i'll at work, and nursing serv-
ice to follow up sick leave cases, as in
other Government agencies.
"It appears to be equally advisable
and equally as lawful to assist in pre-
venting the development of such emer-
emergency and to check the Illness
the letter said. From the experience
Of the corporation, it was believed
desirable that the corporation have
applicants for positions examined
physically before employment and that
the emergency rooms and visiting
nurses be supervised by competent Ii
censed physicians and that advice be
given as to general health conditions. u
Referring to the formation of the
group health association, the letter
continued:
'The corporation contracted to pay
the association $4,000 in considera-
ton of services to be rendered over a
period of two years. The services tc
be rendered consist of examination by
its physicians of applicants for posi-
tlons supervision of its emergency
rooms and its nursing service by them
and general advice and assistance ir
improving health conditions amongst
its employees, and in further considera-
ton of the fact that with this aid the
association shall furnish substantially
a complete health and disqualification
service to employees at low monthly
rates"
The rest of the letter was devoted Il
stressing the broad discretion over ex.
penditures given the corporation BY
the act creating it, and closed as fol
lows:
Il am somewhat acquainted with
your interest and activity in behal
OF the low-paid employees in the Gov
eminent service. This effort of our
is in behalf of the same group of EN-
ployes and We are glad to give yol
any information We may have abou
1t and believe that you will be greatl,
interested in the results
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