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![handle is hein.usccsset/usconset33818 and id is 1 raw text is:
70TH CONGRESS HOUSE OF REPRESENTATIVES REPORT
1st Session I No. 1576
EDWARD HINES JUNIOR HOSPITAL
MAY 9, 1928.-Referred to the House Calendar and ordered to be printed
Mr. LVcE, from the Committee on World War Veterans' Legislation,
submitted the following
REPORT
[To accompany H. R. 5513]
The Committee on World War Veterans' Legislation, to whom was
referred the bill H. R. 5513, having considered the same, report
thereon with a recommendation that it do pass.
Edward Hines, a citizen of Chicago, offered to give the Govern-
ment a large tract of land on the outskirts of that city, on which
was a hospital partly built. He stood ready to complete it for
$3,000,000, plus as much of $500,000 as might he called for by reason
of rise in prices of labor and material. That the Government stood
ready to conclude the bargain on that basis is the only conclusion to
be drawn from a letter of the Secretary of the Treasury dated March
17, 1920, printed in the record of the hearings in the Sixty-ninth
Congress, page 11. On that basis the minds of the two parties met.
Misunderstanding came with attempt to give effect to a stipula-
tion that any saving by the use of cheapening substitutes should
accrue to the Government. The agreement seems to have been
entered into with the intent of accomplishing only this. Nothing
has come to our knowledge to indicate that anybody contemplated
a reduction in the amount of leeway ($500,000) that Mvr. Hines
was to have against a possible increase in cost of labor and ma-
terials. But the contract was so drawn as in actual effect to reduce
this leeway by $100,000.
Mr. Hines and his counsel did not appreciate what would be the
effect of the contract in this particular until they had started back
from Washington to Chicago. They at once returned to Washing-
ton to ask that the contract be redrawn to carry out the original
understanding. This was refused, whereupon the contract was signed
rather than have the hospital fail of completion and its proposed use.
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