to those projects which meet rather stiff tests as to their need, the
professional standards of their service, and the quality of their admin-
istration, including particularly their financial credit and the likeli-
hood the loan will be repaid. The Legislative Council is now con-
sidering the proposed legislation. If the plan is adopted by the Gen-
eral Assembly, it will do much to assure the construction of a new
South Baltimore General Hospital.

I am informed that it will cost more than $12 million to carry out
the building of this new South Baltimore Hospital. A federal grant
of Hill-Burton funds can be reasonably expected for $700, 000. Under
the proposed State legislation, a low-cost, anticipated State loan of
$7 million would be available. With present resources of cash, securi-
ties and bequests and other assets of $2, 335, 000, the amount required
through public subscription for the South Baltimore General's new
hospital is $2 million. This means for each $1 subscribed by the
public an additional $5 is available to do the job.

I have done everything and am willing to do everything I can to
make it possible that the new hospital be constructed. Here is an
indispensable service. Statistics show that about one-eighth of the
population needs a hospital every year.

We talk much of the free enterprise system. It seems to me that we
have a job here for those who believe in the voluntary way. Two
million dollars is a lot of money, and yet, it is not too large in the
light of the over-all cost of this new installation. Yet again, it is large
because the Baltimore area is not dominated by one or two great
locally based companies which might rise to the occasion and cover
most of the requirements with generous contributions. Baltimore has
many large industrial plants which have their headquarters elsewhere.
Too often, a local plant executive must fight hard and tenaciously to
persuade an absentee management that it must share its community
responsibilities in this area, as well as in its home city.

I want to get directly to you with this challenge. Of the hospitals
in metropolitan Baltimore, South Baltimore General is one of only
two which do not have ready-made support. Religious and other
organizations, or branches of the government, take on the task of
meeting most of the financial requirements of the other hospitals,
excepting in a few cases where large endowments created decades ago
do so. South Baltimore General has no such resources, unless — and
I believe that this is the one sure way to handle its needs — South
Baltimore General is adopted by the industrial and business leadership
of our city. Here truthfully is a chance for business to show its best

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