although efforts are made to collect the fees for such services from a nonresident patient or the Board of Commissioners of his home county. The plaintiff has had a history of deficit operations.

2. On March 7, 1942, three agents of the defendant's Alcohol Tax Unit, Bureau of Internal Revenue, Department of the Treasury, conducted a search for ar illegal whiskey still in Lexington County, South Carolina. They had no warrant of arrest. At the request of S. S. Sligh, the agent in charge, J. A. Watts, deputy sheriff of that county, was aiding in the investigation.

3. As the officers approached a likely location near Florence Church, Lexington County, Investigator Sligh stationed his men, advanced alone through the under brush to an oak thicket, discovered an illegal whiskey still in operation, arrested its attendant, one Harold Sharpe, and hearing the sound of wood cutting nearby returned quietly with his prisoner to his group of agents. At Sligh's request Deputy Sheriff Watts proceeded to apprehend the wood cutter. A scuffie oc curred, and a person later identified as Halsford V. Sharpe, a co-operator of the still and cousin of Harold Sharpe, attempted to escape, and was shot once by a pistol in the hand of the deputy sheriff.

Later diagnosis showed that the bullet entered the back about one and one-hak inches to the left of the eleventh thoracic vertebra, passed laterally through and fractured that vertebra, severed the spinal cord, coursed through the right lung anteriorly, and came to rest in the fourth rib interspace.

4. Upon inspection of the wounded man, Investigator Sligh concluded that his injuries were serious and transported him to the plaintiff's hospital in adjoining Richland County, which had the best available facilities for emergency treatment In the hospital emergency room, Investigator Sligh advised Dr. Katz, the at tending interne, that he was an agent of the Alcohol Tax Unit, that the patient had been wounded in a Federal raid, and that he wanted the hospital to summon Dr. Hopkins, who was on the Government list of approved physicians and surgeons. He also advised that he would notify the United States Marshal, who would take charge and make any further arrangements about physicians.

On some previous occasions, the Alcohol Tax Unit had brought wounded prisoners to the plaintiff's hospital for care and treatment during the time they were in legal custody, and payment had been made for the services rendered. The subject matter of payment for services to Halsford V. Sharpe was not dis cussed on his admission to the hospital.

5. Because of the severance of his spinal cord as a result of the pistol shot, Halsford V. Sharpe was paralyzed from the waist down and has remained in such condition ever since. He cannot operate a wheel chair, and he is totally and permanently disabled. He has been continuously a bed patient in the hospital from the time of his admission, and was still such when his testimony was taken at the hospital in the trial of this case on October 28, 1952. At that time he was 33 years of age. He has had no relatives willing or able to care for him, and is without means of his own to pay for hospitalization. The Board of Commis sioners of Lexington County, where the patient resided at the time of his injury, has refused to contribute to or assume the responsibility for his care, on the ground that he is not a legitimate charge of that county under the circumstances of his case At times, the hospital has been required to place him in a private room becasa of his disturbance of other patients, and also because of suspicion that he was getting narcotics and barbiturates from outside sources. He can neither read nor write. Efforts to rehabilitate him through the vocational training program of the State of South Carolina have been to no avail because of his marked personality problems.

6. Shortly after Halford V. Sharpe was admitted to the hospital, the United States Marshal was informed and obtained a warrant of arrest and served the same upon the patient at the hospital. The hospital was also advised that the patient was in the constructive custody of the Marshal. Because of the condi tion of the patient, no hospital guard was maintained.

7. On May 26, 1912, Halsford V. Sharpe was indicted in the United States District Court, Eastern District of South Carolina, on four counts based on the circumstances of his operation of the illegal still.

Two operations were performed upon him by Drs. Hopkins, Madden, and Lindler, the last of which occurred August 26, 1942. By September 1, 1942, the patient was convalescing, but the prognosis with respect to recovery of bodily function was that there would be none.

The Assistant United States Attorney, assigned to the case, requested the sug gestions of Investigator Sligh and the United States Marshal with respect to what disposition should be made of the case. They informed him of the physical con dition of the patient, but advised against nolprossing of the indictment.

On September 16, 1942, the indictment was dismissed by order of Judge George Bell Timmerman of said Court, on the stated ground that "because of the defendant's physical condition it is not the intention of the United States Attorney to further proceed with the prosecution of this case.' The patient was discharged from the Marshal's custody by order of Judge J. Waties Waring of said Court, on September 17, 1942. On the same day, the United States Marshal served notices of the Court's action upon the plaintiff and the patient, and further notified the plaintiff in writing that "the U. S. Marshal would no longer be responsible for any bil's incurred by the defendant Halsford Victor Sharpe." This latter notice was served on the plaintiff at the direction of the Assistant United States Attorney. 8. The defendant, through the United States marshal, paid the hospital bill for the care and treatment of Halsford V. Sharpe from March 7, 1942, to September 17, 1942, in the sum of $1,055.15. The services of the physicians prior to the latter date were also paid for by the defendant, except those of Dr. Lindler who failed to present his statement.

While the United States Marshal informed the plaintiff that payment of hospital fees would be made through his office while the patient-prisoner was in his custody, there was no express representation by any agent of the defendant as to whether or not payment would be made thereafter.

9. The reasonable charges, entered on the plaintiff's books and records, for the care and treatment of Halsford V. Sharpe, in addition to the sum paid by the defendant, amounted to $13,246.53 through December 31, 1950, the period of time specified in H. R. 4162, hereinafter mentioned in Finding No. 12.

Thereafter, additional reasonable charges through October 11, 1951, amounted to $2,075.34, or a total of $15,321.87 for the period of time alleged in the plaintiff's petition on file in this case.

Thereafter, additional reasonable charges through October 18, 1952 (which date was about ten days prior to the commencement of the trial of this case), amounted to $3,001.05, or a total by that time of $18,322.92, no part of which has been paid. 10. In 1948 Congress passed a bill, H. R. 431, 80th Congress, 2d Session, for the relief of the plaintiff in the sum of $3,414.90, for hospital care and medical attention furnished to Halsford V. Sharpe, for the period beginning September 18, 1942, and ending December 31, 1945. The bill was returned, without approval, by the President on March 20, 1948. After referral of the veto message to the House Committee on the Judiciary, no further action was taken.

11. In April 1949 the plaintiff herein filed suit in the United States District Court for the Eastern District of South Carolina, against the defendant herein, asking judgment in the sum of $8,762.38 for the care and treatment of Halsford V. Sharpe to January 1, 1949. The defendant filed a motion to dismiss the action upon the ground that the complaint failed to state a claim against the defendant upon which relief could be granted. The motion to dismiss was granted by Judge C. C. Wyche of said Court, in a formal opinion and order, dated December 22, 1949, 87 F. Supp. 535.

12. On May 17, 1951, H. R. 4162, 82d Congress, 1st Session, was introduced in the House of Representatives, which bill proposed payment to the plaintiff of the sum of $12,914.58, in full settlement of its claims against the United States on account of hospital care and medical attention provided to Halsford V. Sharpe or the period beginning September 18, 1912, and ending December 31, 1950. House Resolution 401, 82d Congress, 1st session, passed on October 4, 1951, provides as follows:

Resolved, That the bill (H. R. 4162) entitled "A bill for the relief of the Columbia Hospital of Richland County, South Carolina," together with all accompanying papers, is hereby referred to the United States Court of Claims pursuant to sections 1492 and 2509 of title 28, United States Code; and said court shall proceed expeditiously with the same in accordance with the provisions of said sections and report to the House, at the earliest practicable date, giving such findings of fact and conclusions thereon as shall be sufficient to inform the Congress of the nature and character of the demand, as a claim legal or equitable, against the United States, and the amount, if any, legally or equitably due from the United States to the claimant.

TREASURY DEPARTMENT,
Washington, May 11, 1954.

Hon. WILLIAM LANGER,

Chairman, Committee on the Judiciary,

United States Senate, Washington, D. C.

MY DEAR MR. CHAIRMAN: Reference is made to your requests of August 18 1953, and March 30, 1954, for the views of this Department on two identical bills S. 2481 (83d Cong., 1st sess.) entitled "A bill for the relief of the Columbia Hos pital of Richland County, S. C.," and H. R. 6477 (83d Cong., 2d sess.) entitled "An act for the relief of the Columbia Hospital of Richland County, S. C."

The bills involve a claim arising out of the shooting of Halsford V. Sharpe in 1942 in the course of his arrest at an illicit distillery by agents of the Alcohol Tax Unit, Internal Revenue Service, Department of the Treasury. Since that time Mr. Sharpe has been hospitalized in the Columbia Hospital of Richland County Detailed facts are referred to later.

The bills would authorize and direct the Secretary of the Treasury to pay $18,322.92 to the above hospital in full settlement of all claims by the hospita against the United States for hospital care and medical attention provided for Mr. Sharpe during the period September 18, 1942, to October 18, 1952, inclusive. The bills would also authorize and direct the Secretary of the Treasury and the Secretary of Health, Education, and Welfare to make such arrangements as are necessary to transfer Mr. Sharpe from the above hospital to any hospital under the jurisdiction of the Public Health Service which can provide care and treatment on a permanent basis for said individual. The bills would further authorize and direct the Secretary of the Treasury to pay to the above hospital a sum equal to the amount certified by the United States Court of Claims as being the amount of reasonable and necessary expenses incurred by said hospital in providing care and treatment of Mr. Sharpe during the period beginning October 19, 1952, and ending on the day immediately prior to the date of his transfer to the hospital under the jurisdiction of the Public Health Service.

The bills effectuate the determination of the United States Court of Claims in Columbia Hospital of Richland County v. The United States (Congressional No. 17872, decided July 13, 1953) that there is a moral obligation on the part of the United States to compensate the Columbia Hospital for all past expenses in caring for Mr. Sharpe and to either compensate the hospital for future expenses or arrange for the transfer of Mr. Sharpe to a Federal institution equipped to care for him on a permanent basis.

The case was referred to the United States Court of Claims by House Resolution 404, 82d Congress, after at least two private relief bills (S. 117 and H. R. 431, 80th Cong.) had failed to become law. One of these, H. R. 431, was passed by Congress but was returned without approval by the President on March 20, 1948. The President's veto message adopted the position of this Department with respect to the two bills, viz., that there was no agreement by the Treasury Department that it would reimburse the hospital for Mr. Sharpe's care and hence no basis for the hospital's claim.

The United States Court of Claims in the Columbia Hospital case recognized that there is no legal basis for a claim by the hospital against the United States but found that there is a moral obligation which these bills are designed to effectuate.

Under the circumstances, the Treasury Department is not opposed to the enactment of legislation to fulfill the moral obligation of the United States to the Columbia Hospital of Richland County. It is the view of this Department, however, that any provision in the bills for making arrangements for the transfer and permanent care of Mr. Sharpe should not involve the Secretary of the Treasury except as is necessary to pay the costs thereof out of general funds. The Director, Bureau of the Budget, has advised the Treasury Department that there would be no objection to the presentation of this report.

Very truly yours,

M. B. FOLSOM, Acting Secretary of the Treasury.

О

MAY 27 (legislative day, MAY 13), 1954.—Ordered to be printed

Mr. WELKER, from the Committee on the Judiciary, submitted the following

REPORT

[To accompany S. 2766]

The Committee on the Judiciary, to which was referred the bill (S. 2766) to amend section 7 (d) of the Internal Security Act of 1950, having considered the same, reports favorably thereon with amendments and recommends that the bill, as amended, do pass.

AMENDMENTS

The amendments are as follows:

1. On page 1, line 6, change the letter "a" to "A".

2. On page 2, in lines 7, 9, and 10, change the word "Communist action" to "Communist-action" and the word "Communist front" to "Communist-front" wherever they appear.

PURPOSE OF THE BILL

The purpose of the bill is to amend the Internal Security Act of 1950 so as to provide that any organization required to register under the act as a Communist-action or Communist-front organization must also register all equipment for the printing or publication of any printed matter in the possession, custody, ownership, or control of such organization.

The amendments are merely for the purpose of clarification.

STATEMENT OF THE FACTS

The necessity for the proposed legislation results from disclosures by hearings conducted by a task force of the Subcommittee to Investigate the Administration of the Internal Security Act and Other Internal Security Laws of the Senate Committee on the Judiciary that Communist underground printing facilities have been secretly established in various sections of the country to print directives and other material for use by the Communist apparatus in this country. These clandestine printing operations constitute an integral part of the conspiratorial operation of the Communists in this country and the committee is of the opinion that immediate steps should be taken to bring these operations into the open in the manner proposed in the instant bill to permit proper surveillance.

The subcommittee in the course of its hearings received testimony from witnesses with respect to printing facilities which had been secretly established by the Communist agents at Chapel Hill, N. C., New York City, N. Y., Pittsburgh, Pa., and in Alameda County, Calif. Additional testimony was received which related to a printing establishment in the Nation's Capital operated by Communist agents. Reference to certain pertinent portions of the testimony received by the subcommittee will demonstrate quite clearly the manner in which the underground printing facilities are established and operated and the need for exposing such activities.

With reference to the Communist printing facilities established in Chapel Hill, N. C., Mr. Paul Crouch who, prior to his break with the Communist Party, had been high in the Communist apparatus in this country testified as follows:

Senator WELKER. So that we might have some continuity in this testimony, briefly I will ask you about the printing press in the Abernethy bookstore in Chapel Hill, N. C. Who put it there, when, and what instructions did you give as to its operation?

Mr. CROUCH. The printing press at Chapel Hill, N. C., located in a rear room of the Intimate Book Store, owned and operated by Milton and Minna Abernethy, was purchased with money furnished by J. Peters of the underground apparatus of the Communist Party, the money being given to Alton Lawrence, a member of the district committee of the Communist Party of North Carolina, an undercover member of the Communist Party. He was also State secretary of the Socialist Party of North Carolina at the same time.

This money was used to buy a linotype machine, a cylinder printing press of the type used in country papers, type, and other equipment, and its chief aim was for the Communist Party to have facilities during underground conditions, underground conditions such as a war between America and Soviet Union, and other circumstances that would cause the Communist Party to be declared an illegal organization.

Under such conditions, this press was to be operated to produce illegal literature throughout the district. It was to be used under exceptional circumstances. In the meantime, for the production of some Communist literature, it was to be used.

For example, 1 or 2 issues of the Communist paper, Southern Worker, was printed on it, and the paper called Carolina Youth, edited by my wife, Sylvia Crouch, was printed on it.

Senator WELKER. She was a Communist?

Mr. CROUCH. She was and she was the head of the Young Communist League of the Carolina district at that time.

Senator WELKER. Did she break with the party at the same time you did? Mr. CROUCH. Yes, sir; she broke at the same time, in 1942.

IU. S. Senate Committee on the Judiciary, Communist underground printing facilities and illegal prope ganda, hearings, Mar 6, 13, 31, Apr 10, May 28, June 11, and July 11, 1953; 83d Cong., 1st sess.