sought only to exclude it entirely, rather than merely to limit its phobative force, there was, consequently, no error in admitting it, in any event.

Appellants contend further, in this connection, that: "A misdemeanor such as described in Section 3 of the Sherman Act is not a violation of the law in Texas, Wisconsin, or any other state of the United States. A restraint of intrastate trade in Texas or Wisconsin is not a violation of any law of the United States, and so far as this record discloses, of any state law. Every man has a right to do it, and no finger of scorn is to be pointed at him for doing it. To permit the Government to prove in a case pending in the District of Columbia lawful acts that were performed by the defendant AMA in Texas and Wisconsin is error." But as applied to the present case the premise is incorrect and the conclusion does not follow. In the first place, it is elementary that if the object of a conspiracy is criminal, then evidence of conduct-otherwise lawful-but which is intended to achieve that criminal objective may properly be received to prove the conspiracy.90 In the second place, whether the particular conduct was criminal at the time and place where it occurred is beside the point. Evidence has been admitted to prove background, even though it concerned conduct which occurred prior to adoption of the act under which the indictment was found; as well as concerning conduct which occurred before the date in the indictment when it was alleged that the accused persons conspired." The dis puted evidence in the present case was not offered to prove the commission of crimes in Texas, Wisconsin, or other states, but to prove the commission of a crime in the District of Columbia, by proving the background of appellant's conduct in the Distric tof Columbia. What it did in the District was part of a larger plan. Evidence of conduct in other states-which may have been perfectly lawful according to the laws in force in those states-was nevertheless proof of appellant's intent and purpose in acting as it did in the District. The cases relied upon by appellants require no other conclusion. One of them is not in point and in both of the others all the acts complained of were committed outside the United States."4 In Eastern States Petroleum Co., Inc. v. Asiatic Petroleum Corp., Judge Chase, speaking for the Second Circuit Court of Appeals, put the case in a nutshell when he said: "Likewise, what was done wholly abroad unaided by acts in this country must be counted out." [Italics supplied]

93

Appellants contend that the verdict of the jury acquitting all the defendants except the American Medical Association and the Medical Society of the District of Columbia, and convicting the two latter associations, constitutes such inconsistency as to require that the verdicts of guilty be set aside. It has been held many times that inconsistency in verdicts does not require the result contended for by appellants. And this is true even though the inconsistency can be explained by no rational considerations." The question for us is whether the conviction is consistent with the evidence." Complete identity of participation in the conspiracy was not necessary upon the part of the participants, either in fact or in law. While such complete identity is not necessary in order to sustain a

Greater New York Live Poultry Chamber of Commerce v. United States, 2 Cir., 47 F. (2d) 156, 159, cert. denied, 283 U. S. 837.

99 Aiken v. Wisconsin, 195 U. S. 194, 206; Swift and Co. v. United States, 196 U. S. 375, 396; Badders v. United States, 240 U. S. 391, 394 Duplex Printing Press Co. v. Deering. 254 U. S. 443, 465; Falstaff Brewing Corp. v. Iowa Fruit & Produce Co., 8 Cir., 112 F. (2d) 101. 108; Lynch v. Magnavox Co., 9 Cir., 94 F. (2d) 883, 889; Marino v. United States, 9 Cir., 91 F. (2d) 691, 694, cert. denied, 302 U. S. 764.

21 Standard Oil Co. v. United States, 221 U. S. 1, 46-47: " it tended to throw light upon the acts done after the passage of the Anti-trust Act and the results of which it was charged were being participated in and enjoyed by the alleged combination at the time of the filing of the bill.'

02 Heike v. United States. 227 U. S. 131, 145: "The longer it had lasted the greater the probability that he knew of it and that his acts that helped it were done with knowledge of their effect."; Baush Machine Tool Co. v. Aluminum Co. of America. 2 Cir., 72 F. (2d) 236, 239, cert. denied, 293 U. S. 589: Wilson v. United States, 6 Cir., 109 F. (2d) 895.

93 See Greater New York Live Poultry Chamber of Commerce v. United States, 2 Cir., 47 F. (2d) 156, 159, cert, denied, 283 U. S. 837.

94 American Banana Co. v. United Fruit Co.. 213 U. S. 347. 357; Eastern States Petroleum Co., Inc. v. Asiatic Petroleum Corp., 2 Cir., 103 F. (2d) 315, 319.

95 Ibid.

90 United States v. General Motors Corp., 7 Cir., 121 F. (2d) 376, 411, cert. denied, 314 U. S. 618; Bryant v. United States. 5 Cir., 120 F. (2d) 483. 485: Dunn v. United States, 284 U. S. 390, 393; Steckler v. United States. 2 Cir.. 7 F. (2d) 59, 60; United States v. Austin-Bagley Corp., 2 Cir., 31 F. (2d) 229, 233, cert. denied, 279 U. S 863; Crichton v. United States, 67 App. D. C. 300, 303. 92 F. (2d) 224, 227, cert. denied, 302 U. S. 702. See United States v. Bergdoll. E. D. Pa., 272 F. 498, 505, cert. denied, 59 U. S. 585.

United States v. Austin-Bagley Corp., 2 Cir., 31 F. (2d) 229, 233, cert. denied, 279 U. S. 863. United States v. General Motors Corp., 7 Cir., 121 F. (2d) 376, 411, cert. denied, 814 U. S. 618.

verdict when several persons jointly tried are convicted," lack of it may be enough to explain away a supposed inconsistency when some are acquitted and others convicted. Thus in American Socialist Soc. v. United States, the court said: "The last objection is that the judgment should be reversed, because, if the author of the pamphlet was not guilty, the publishers could not be guilty. It is said that Nearing must have been acquitted on one of two grounds, viz either that the pamphlet itself was innocuous or that he had no intent to obstruct the recruiting and enlistment service of the United States. If the acquittal of Nearing was on the first ground, the society ought also to have been acquitted. We are therefore justified in finding that the acquittal was on the second ground. The statute, in defining the offense, imposes the additional condition that the act shall be done with the specific intent of obstructing the recruiting and enlistment service of the United States. The jury might believe that Nearing did not write these harmful views with the intent of obstructing the recruiting and enlistment service of the United States, and at the same time believe that the Society did print and distribute them with that intent. Such findings would not be inconsistent. This is a matter of fact, of which the jury are the sole judges, and with it we have no concern."

99 100

104

102

Appellants' contention confuses the concepts of corporate and individual criminal liability. When a corporation is guilty of crime it is because of a corporate act, a corporate intent; in short, corporate commission of crime.1 The fact that a corporation can act only by human agents is immaterial. How separate is the identity of the corporate person and the individual person, where criminal liability is concerned, is shown by the fact that a corporation may be found guilty of a crime, the essential element of which is a specific criminal intent.103 This has been often held in conspiracy cases." In at least one state it has been held that the corporation and its agents may be separately counted in order to find the two or more persons necessary for the commission of a conspiracy.10 In the present case a large number of individuals were named as defendants; some of whom were agents of appellants, others who were not. Moreover, as the two corporations were convicted, the requirement of two persons is satisfied in any event. Consequently, for both reasons, the conviction of appellants does not depend upon the guilt or conviction of their agents.

We have carefully examined appellants' other contentions and find them to be without merit. As we read the record the case was tried carefully and fairly; the jury was properly instructed; and the evidence was adequate to support the verdicts.

The subcommittee reconvened at 2:30 p. m., pursuant to recess. Senator SMITH. The next witness is Dr. Parran, Surgeon General, United States Public Health Service. Will you come around, Dr. Parran?

STATEMENT OF DR. THOMAS PARRAN, SURGEON GENERAL, UNITED STATES PUBLIC HEALTH SERVICE, WASHINGTON, D. C.

Dr. PARRAN. Mr. Chairman, the two bills before this subcommittee, S. 1320 and S. 545, might be regarded as alternative approaches to

McCandless v. Furlaud, 296 U. S. 140, 165; United States v. Anderson, 7 Cir. 101 F. (2d) 325, 332–333, cert denied, 307 U. S. 625; THORNTON, COMBINATIONS IN RESTRAINT OF TRADE (1928) §§ 211, 454.

100 2 Cir. 266 F. 212. 214, cert. denied, 254 U. S. 637.

101 United States v. Union Supply Co., 215 U. S. 50.

102 United States v. General Motors Corp., 7 Cir., 121 F. (2d) 376, 411, cert. denied, 314 C. S. 618; United States v. Austin-Bagley Corp., 2 Cir., 31 F. (2d) 229, cert. denied, 279 U. S. 863.

10 American Socialist Soc. v. United States, 2 Cir., 266 F. 212, 214, cert. denied, 254 U. S. 637.

19 Joplin Mercantile Co. v. United States, 8 Cir., 213 F. 926, 935-936, aff'd, 236 U. S. 531: Note, Ann. Cas. 1916C 459; United States v. MacAndrews & Forbes Co., C. C. S. D. N. Y., 149 F. 823, 835-836: error dismissed, 212 U. S. 585; People v. Dunbar Contracting Co., 165 App. Div. 59, 61, 151 N. Y. S. 164, 166, aff'd, 215 N. Y. 416, 109 N. E. 554; State v. Eastern Coal Co., 29 R. I. 254, 268, 70 A. 1, 7; Mininsohn v. United States, 3 Cir., 101 F. (28) 477, 478.

195 Standard Oil Co. v. State, 117 Tenn. 618, 667, 100 S. W. 705, 718, 10 L. R. A. (N. S.) 1015.

the problems which confront us in the field of national health. In many respects, however, they are not comparable. S. 1320 provides for a comprehensive program which embraces five of the six points the Public Health Service has advocated as the components of an effective national-health program: Expansion of public-health serv ices and organizations; construction of needed hospitals and related facilities; education of professional personnel; extension of scientific research; and implementation of a medical-care program. The sixth area of national-health need which S. 1320 does not cover specifically is that of environmental sanitation.

S. 545, on the other hand, does not purport to authorize a comprehensive program. Rather, it addresses itself primarily to one specific area of need-to medical care. To be sure, it contains some provisions for cancer control, for dental care, and for dental research. But the bill basically is directed toward the problem of obtaining personal health services for the medically needy.

In short, S. 1320 would attack the weakness in our National health structure on a broad front. S. 545 proposes an experimental program, aimed essentially at one basic need.

With the committee's permision, I shall limit my remarks to the general features of the two bills, leaving detailed comments to any discussion which may follow at the conclusion of my statement.

It is only in the approach to the problem of medical care that we can contrast the provisions of S. 1320 and S. 545. The former bill would establish a national system of compulsory health insurance to finance comprehensive medical services for approximately 85 percent of the population, through pay-roll deductions, supplemented by general taxation. Administration would be decentralized to a considerable extent to State and local governments.

S. 545, on the other hand, is designed to make available general health, hospital, and medical services to families of low income. Health- and dental-inspection services would be provided to all school children. States also would be assisted in making available dental care for school children and for individuals and families who are unable to pay the whole cost of such care. The program would be financed jointly by the Federal Government and the States on a matching basis.

In testimony submitted before the Seventy-ninth Congress the Public Health Service stated the belief that the health needs of the Nation could be met most effectively and in the shortest period of time through a broad program financed in part through health insurance. This position was based not on a preference for any particular scheme or social organization or pattern of Government action but rather on the conviction that such an approach will bring us more. quickly to our health goals than any plan yet suggested.

From our viewpoint the most significant feature of S. 1320 is that it would definitely commit the Federal Government, in cooperation with the States, to a concerted attack on the problem of providing adequate medical care for all our people.

The Public Health Service fully recognizes that neither S. 1320 nor any other legislation of itself could immediately provide adequate medical care for the entire population. There obviously will be some time lag between the inauguration of the program and the develop

ment of the personnel and the facilities needed to overcome the deficiencies which now exist in many parts of the country.

Senator SMITH. If there would be this time lag, how would we take care of the responsibility that would be the Government's if the compulsory health insurance program were put into effect, and deductions made from pay rolls of the workers, from which they would expect an over-all coverage of health service?

Dr. PARRAN. Mr. Chairman, it is a very important question. I am not sure I have all of the answers, but at least I will venture some suggestions as to ways by which this time lag could be overcome.

At the outset I think we agree until there is a declaration of national policy we are not likely to develop the personnel and facilities as well as if there were a declaration of national policy.

You will recall that S. 1320 contains several titles.

It should be possible, for example, to have the provisions of title III, namely, the development and expansion of health services, and the provisions for aid for medical education and possible liberalization of hospital services and construction, to become effective on a date. prior to that on which the pay-roll taxes would become effective. During this interval the country would be aware of what was the national intent and get geared up to provide this new program.

Senator SMITH. They would have to be spending money on the program, it seems to me, before they would be able to return anything from the so-called tax.

Under S. 545 we are asking the States to experiment with this whole thing, and we are giving them grants-in-aid, and I have said to some witnesses, like witnesses from California, "Go ahead, California, and start. We are not putting any limitation on it."

I have a great question in mind as to whether or not we can establish a principle of over-all national taxation and think in terms how you are going to deliver the goods.

The question has been raised by many doctors: How are we going to be able to set something up here without objectionable compulsory features in return for the taxes which would be compulsory?

Dr. PARRAN. I think, perhaps, Mr. Chairman, some of the suggestions I shall venture in my testimony will answer in part some of the fundamental questions you have asked, and if not, I shall be glad to respond further.

Senator SMITH. Go ahead.

Dr. PARRAN. But in addition to the necessary legislative authority, S. 1320 recognizes the obligation of Government to take all necessary steps toward achieving the goal of a healthy nation. It defines the objectives, establishes time limits for arriving at those objectives, and authorizes appropriation of sufficient funds to carry on the program it would set up. Thus, we believe it offers a competent mechanism for improving the Nation's health.

Without doubt, the type of legislation proposed in S. 1320, if enacted, would present many and diverse administrative difficulties. There is no question that some, or perhaps many, of the provisions would require modification in the light of operating experience. But I am convinced that the problems encountered would not be insurmountable. The war has emphasized that the most difficult of tasks can be performed successfully if there is the will to accomplishment.

An unwilling medical professional would present the greatest obstacle. Senator SMITH. I notice that, and it troubles me at the moment because we know the medical profession is apparently very unwilling to go along with a program of this kind at this time. All the doctors I have talked to feel it should be done by the trial and error method rather than by an over-all program. If they resist it, I do not see how you are going to develop your plan without some attempted method of compulsion.

Dr. PARRAN. The Public Health Service realizes that the issues involved in these bills go far beyond administrative difficulties and beyond methods of financing. They include fundamental questions relating to the political and economic foundations of our nationalhealth structure which are matters of public policy and which only the Congress can resolve.

The testimony of the Public Health Service and of many other witnesses presented before the committee during hearings on the nationalhealth bill of 1945 dealt largely with compulsory health insurance.

In addition, the Administrator of the Federal Security Agency in his statement gave particular attention to the compulsory health insurance approach as embodied in S. 1320. I should like, therefore, to deal largely with an alternative approach—the more limited developmental program.

Senator DONNELL. Have you read the statement of Mr. Watson B. ! Miller?

The history of health legislation and service in the Federal Government has been characterized by the selective approach to particularly urgent problems. While this process has resulted in some unevenness in development and some difficulty in administration, the record clearly shows substantial progress through this approach. In fact, the present program of the Public Health Service has been along these very lines.

Our earlier efforts were directed toward the conquest of diseases amenable to mass controls-smallpox, typhoid fever, pellagra, and the like. Later, we have sought to control specific diseases of public-health importance, venereal diseases, tuberculosis, mental disease, and cancer. Senator SMITH. You are speaking of the field of preventive medicine, smallpox vaccination, typhoid fever, pellagra, and the like.

Dr. PARRAN. Yes; that is correct. And in the case of venereal diseases, tuberculosis, mental diseases, and cancer, the present Public Health Service program goes beyond prevention-to supervision and treatment of the individual.

In the case of venereal disease and tuberculosis, it is obvious that an infected individual is a hazard to his fellowman.

In diseases such as mental diseases and cancer, it is obvious that they require a totally different kind of treatment.

În approaching one after another health problem of the Nation. first efforts obviously should be directed toward the sectors of greatest need. The Public Health Service, after years of study, has defined six elements of a national-health program. A brief review of steps toward those six goals may be helpful in identifying our present position and in charting a future course.