as well as safe, requiring that cosmetics be proved safe before marketing, strengthening the Government's ability to combat the illicit sale of barbiturates and habit-forming stimulant drugs, and strengthening the regulation of drug manufacturing processes. CONCLUSION We have prepared a more detailed highlight statement of the budget estimates by operating agency which I am also submitting for the information of the committee. In closing may I state that the budgetary requests and legislative proposals represent, I believe, a responsible program for the investment of Federal resources in our most priceless national asset-human resources. This program looks not only to present requirements but also to the need to build today for our Nation's future. It is a responsible program because it reflects the fact that not all our aspirations can be financed at any one time and, consequently, it reflects our best judgment of priority needs. All in all it represents a program which I can recommend to the serious consideration of this committee. I wish to thank you for the opportunity you have provided me to make this statement, and I shall be pleased to answer any questions you may have. May I apologize for the length of this statement. I tried, I could not make it any shorter. No matter how Senator HILL. Mr. Secretary, we thank you for your statement and as to the length, I think we have to state you had a large number of different activities that you had to cover. It simply takes time to cover all of these activities but we appreciate your statement and the detailed presentation which you made. FUNDS IN RESERVE In reference to your statement about the reserves that you made in funds that had been appropriated particularly dealing with health, I must say that I was very much disappointed that the administration saw fit to make these reserves. I realize that some of the reserves that you made perhaps really were not actual savings. For instance, there was an item of $19, 802,000 for defense educational activities. Now, those are 2-year funds, as I understand it, so these funds will be available in the next fiscal year as well as this year, is that right? Mr. KELLY. Part of it would, Mr. Chairman. We had estimated when we appeared before you how much of the funds would be used in 1962 and this is a revision of that estimate downward on the basis of the present indications of the States' expected use of the funds. This primarily relates to the grants which make it possible for States to obtain mathematics, science and foreign language equipment. Senator HILL. And those funds are 2-year funds, are they not? Mr. KELLY. Yes, sir. Senator HILL. In other words, they would be available for the next year as well as for this year, is that correct? Mr. KELLY. Correct. BUILDING FACILITIES FUNDS PLACED IN RESERVE Senator HILL. With reference to the $10 million reserved for "Buildings and facilities, Public Health Service," these funds are available next year, are they not, and can be expended? Mr. KELLY. Yes, sir, this is a short deferral of the start. Senator HILL. Just a short deferral before you start that construction? Mr. KELLY. Yes. FOOD AND DRUG FUNDS IN RESERVE Senator HILL. Now, I was very much interested in your reserves on the Food and Drug Administration, remembering that this committee, supported by the full Senate Appropriations Committee, made a reduction in the budget estimate for the Food and Drug Administration. When we made that reduction, we were subjected to very strenuous objections to the reduction by the Department; and although we restored a good part of what we had cut in the Senate in conference, we find that under the administration policy a reserve of $1,146,000 was taken out of the funds that we did appropriate. Now, we note that the budget estimate, as supported by the administration and by the Department, is to provide $6,855,000 more than the funds available in 1962. In other words, you reduced the $23 million as provided for 1962 by the Congress and now you provide in this budget for next year $28,400,000. Your budget this year in each one of these categories or practially each one where you made reserves, the budget now for the coming fiscal year confirms the correctness and the wisdom of the findings of the Congress as to the needs because in practically each instance where you made a reserve, Mr. Secretary, under the administration policy, we find you are asking for more funds than the budget estimates were for the present fiscal year. Secretary RIBICOFF. I must say under no circumstances am I reflecting on the wisdom of the Congress. The only difference is last year we did not have the money and this year we are going to have it. Senator HILL. Then you would agree that your estimates for this year confirm the findings of the Congress as to the needs for the funds? REASONS FOR POLICY ON PLACING FUNDS IN RESERVE Secretary RIBICOFF. Yes. Basically Congress in its wisdom considered the budget and enacted the appropriations. After due consideration, the President in looking at the overall problem facing the Nation, considered not only the element of defense but also his desire to have a balanced budget this year. With the economic circumstances involved, he felt it was necessary to place certain sums in reserve. When this Department was asked to go along with that provision, naturally we did. We tried to arrange our reserves in such a way as to have as little impact as possible upon the programs, showing the same respect for Congress' actions as we did for the executive requests in the budget. We respected the programs that Congress had authorized and treated them exactly the same as the programs recommended by the executive branch. In every event reductions did not go below the level of the past year and we thought that they were made in such a way that we could go forward and the country could do very well with these programs because they were a substantial advance even then over the past year. However, we do estimate that this year there will be greater funds available and the program that the executive branch sets up here reflects that change in the situation. CONFIRMATION OF FINDINGS OF THE CONGRESS Senator HILL. The needs are exactly as Congress found them, is that not so? When we agreed in conference in September, we based our appropriations, of course, on the needs that we had, that Congress in its overall judgment found them to be? What I am saying is that your recommendations for the coming fiscal year confirm the findings of the Congress as to the needs of what should be done. Secretary RIBICOFF. There is no question that that is so, Mr. Chairman. Senator HILL. I could take up each one of these items, particularly vocational rehabilitation, for instance. Congress provided $20,250,000 for research and training and the administration reserved out of that some $1,052,000 and now your budget estimate for the coming fiscal year, July 1, is $23,900,000, which is an increase of some $4 million over what you permitted to be spent this year, is that right? Secretary RIBICOFF. That is correct. Senator HILL. The same way with the National Institutes of Health, where you made a reserve there, now your estimates that you are presenting this morning all are above what the Congress provided for the present fiscal year? Secretary RIRICOFF. That is correct, Mr. Chairman. Senator HILL. The point I am making is the findings of Congress noted the needs for these programs and this budget confirms that finding by Congress. PRESIDENT'S MESSAGE By the way, Mr. Secretary, you certainly sent up an able message on health needs in the President's message of February 27, in which he said, and I quote: We stand among the select company of nations for whom fear of the great epidemic plagues is long past; our life expectancy has already reached the Biblical three score and ten; and, unlike so many less fortunate peoples of the world, we need not struggle for mere survival. But measured against our capacity and capability in the fields of health and medical care, measured against the scope of the problems that remain and the opportunities to be seized, this Nation still falls far short of its responsibility. My regret is the administration, if it needed to make reductions, would have seen fit not to ask you, under its policies, to make these reductions in health but perhaps to find some other place in our very large budget to make these reductions. PRESS STORIES ABOUT IRREGULARITIES IN PUBLIC HEALTH SERVICE Mr. Secretary, we have all noted in the press stories about certain irregularities or wrongdoings in the Public Health Service. It is my understanding that these wrongdoings and irregularities have been limited to a very few individuals and that you, together with the head of the U.S. Public Health Service, are carrying forward investigations to ferret out and to regulate any irregularities or any wrongdoings that might have existed, is that correct? Secretary RIBICOFF. That is correct. May I say, Mr. Chairman, there are about 30,000 people in the Public Health Service. This is one of the greatest and most honorable services in our entire Nation with a tradition going back for many, many years. Of course, when you do have as many people involved in any agency or any group, whether it be civilian, governmental, industrial, things do take place and irregularities occur. Certain irregularities have come to our attention. Many of them are very old but yet of a nature that, for the good of the Service, the good of the morale of the Service, we felt we should carefully and thoughfully look into these complaints in order to clear the atmosphere and determine what the facts are. Also we should sift rumor from fact. Many things like this get going and rumors outrun the actuality in many instances. But whatever the basis is, when the investigation is completed, a complete report will be made available to you, Mr. Chairman, and your committee. Senator HILL. Mr. Secretary, I want to say that under date of March 1, just a few days ago, Thursday of last week, you wrote me a letter in my capacity as chairman of this subcommittee, a letter in which you stated that you and the Surgeon General of the U.S. Public Health Service were proceeding to make these investigations and make them as efficient as possible, You closed that letter by saying: I shall be in touch with you again promptly as soon as we have reached conclusions as to what the real facts are. SUBSTANTIATION OF CHARGES In that connection, Mr. Secretary, have you not found even now that there have been few cases where there have been charges made that were proven to be true? Secretary RIBICOFF. Well, it is hard to know. I mean some, of course, have occurred that are easy to find but the current ones are those types of charges that occur in the normal conduct of any agency or any business. Some of the charges, of course, go back many, many years, and it seems that the older they get, the harder they are to run down. First, we have to determine if those people about whom the charges are made, and many of the people are nameless, are still members of the Public Health Service and it could be that many of the people involved have been out of the Service for many years, so it is difficult to know which charges are true and which ones are false. I am proceeding most carefully because the last thing I would want to do would be to besmirch the reputation of any innocent man; and I am going to be very careful, too, to make sure that a great service like the Public Health Service, comprised of men interested in health, are not unjustly accused of charges. I want to find out what the facts are and what the truth is, and we will let you know when we conclude our investigations. 81716-62-pt. 1- -20 INVESTIGATION PROCEDURE Investigation is proceeding independently with people who are not part of the Department. The Department of Justice has been notified of what has been taking place and we will proceed in an orderly, judicial manner, sir. Senator HILL. What would be your attitude toward a person who made charges that were false? Secretary RIBICOFF. I would say we would have to see what the charges are, who these individuals are; some of the charges, I think, were made by people who are no longer part of the Government service. They may have been made by people who have been out of the service for many years. What you can do there, I really do not know. Senator HILL. I shall without objection place in the record the letter to which I referred under date of March 1. (The material referred to follows:) THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE, Hon. LISTER HILL, DEAR MR. CHAIRMAN: In order that you may be currently informed of the Department's progress in dealing with the allegations of improper conduct in the Public Health Service, about which there has been some recent newspaper publicity, I want to give you an interim report. His The matter first originated last September when a man in the Division of Administrative Services of the Office of the Surgeon General appealed to me to review what he regarded as an improper reprimand which he had received. letter contained certain additional complaints. In the course of checking on these complaints, our Personnel Office interviewed a number of people and the result was that the original allegation was expanded to include other more serious allegations, including the mishandling of Government property, the possible misuse of prescription drugs and whisky, and other matters. Upon consultation with the Surgeon General, it was decided to establish a board of inquiry to look into this matter more fully. We also referred immediately to the Justice Department the allegations having to do with misuse of Government property. The board of inquiry was established on October 16, 1961. The FBI conducted an investigation of those allegations over which they had jurisdiction and submitted a report dated October 27, 1961, indicating nothing was found to warrant prosecution. The matter, therefore, was left to the Department for final action. The board of inquiry, consisting of Dr. Porterfield, Deputy Surgeon General, as chairman; Mr. Alanson Willcox, General Counsel; and Mr. Milton Hall, Deputy Director of Personnel, conducted its inquiry during October, November, and December. The board of inquiry obtained the services of two investigators who were detailed to the Department on a reimbursable basis from the Civil Service Commission to assist the board in its inquiry. The investigators served until December 22, 1961. On February 1, 1962, the civil service investigators submitted a written report directly to me which contained allegations which they had picked up in the course of their investigation which were of a more serious nature than any previous allegations. The most serious of these allegations were, however, 8 or 10 years old. I immediately transmitted this report to the Chairman of the Civil Service Commission for possible action, but was advised by him that it was a responsibility of this Department and the Justice Department to look into. Although the statute of limitations has probably run out on these alleged offenses, the matters were referred to the Justice Department for consideration of what action may be required, if any. They are currently considering the matter. The board of inquiry submitted a report on February 12, 1962. It made findings and recommendations in respect to most matters which they had been charged to look into. They also recommended certain additional followup on several outstanding items which they were unable to check out adequately. |