Evening star., 1937-12-18
'CARRAN. STUDIES.
HEALTH DECISION
Ponders Action Following
Ruling Against H. O. L. S.
Clinic Plan.

Senator McCarran, Democrat, Of
Nevada, who received q ruling from
the controller generals once yester-
day holding that the Home Owners
Loan Corp. acted without authority In
allocating funds to the Group Health
Association, Inc. for its employees. Is
marking time today before deciding
what further steps he may take.
The Senator indicated he wanted
to turn the whole problem over in his
mind carefully, before adding anything
to the statement he made yesterday,
in which he expressed belief there
should be legislation to prevent a re-
currence In Government departments.
Senator McCarran has indicated
in the past that his request to the
controller generals ONCE for the opin-
ion was for the purpose of finding
out whether there was authority in
law for the ALLEGATION OF the fund.
He firmly believes in the full author
ity Of Congress over appropriated
moneys, and feels that bureaus and
departments have no right to divert
funds to purposes other than those
for which specifically appropriated.
Legality Of Clinics Questioned.
Meantime, the decision Of Acting
Controller General r. NJ Elliott Gre
ated widespread speculation through
out the Government service, partic-
ularly because Of the fact that he had
cast doubt" on the legality Of health
clinics throughout the Government
service. In virtually every Govern
ment establishment and department,
there is some kind Of clinic or dis
pensary for the treatment Of minor
ailments, and for giving first aid in
major accidents.
The question as to what this may
lead to was raised in many quarters,
where for many years the rights Of
Government departments to provide
clinic treatment had never been
questioned.
Oficisls of the Group Health As
sociation and the Home Owners Loan
Corp. were non -committal today. No
comment was forthcoming from them,
except the announcement that the
clinic in the 1900 block of I street was
continuing to operate as usual.
No ofiiciaI notice had been sent
to the H. o. L. c. up to early today,
and 1t was understood the organiza-
ton accused Of allocating funds with
out authority Of law" was still with
out an ofncial copy of the ruling to
this effect. The controller general
had been requested to make the ruling
for Senator McCarran, had sent it to
him and not to the H. o. L C.
Claim Jurisdiction Over Funds.
What effect this may have In the
early future was q question. Oficials
Of H. o. L. c. have held in the past,
according to their formal defense of
Group Health Association, that their
funds, that Of Corporation" were
not subject to the same rules and
regulations as regularly appropriated
funds. This claim was based on law
establishing H. o. L. c.
Meantime. the controversy between
the Group Health Association and
the District Medical Society was still
in the hands of Corporation Counsel
Elwood H. Seal. He Is endeavoring
to nnd the answers to two questions:
Whether G. H. A. Is corporation
engaged In the practice of medicine,
or whether 1t Is in the insurance
business without license to sell in
surance. G. H. A. officials claimed
1t was neither, but that 1t was q cor
poration selling services.
Spokesmen for the Medical Society
said 1t had no comment to make ut
this time on the Elliott ruling.