Simkins v Moses H Cone Memorial Hospital Appellants Appendix
Public Court Documents
December 17, 1962

237 pages
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Brief Collection, LDF Court Filings. Simkins v Moses H Cone Memorial Hospital Appellants Appendix, 1962. e55a9f66-c49a-ee11-be37-00224827e97b. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/75b635b0-47cd-4a14-b985-29450152bf67/simkins-v-moses-h-cone-memorial-hospital-appellants-appendix. Accessed October 08, 2025.
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In the llmtih BtnUz (Enart of Appeals F ob the F ourth Circuit No. 8908 G. C. Simkins, Jr., et al., and United States of A merica, Appellants, Moses H. Cone Memorial H ospital, a corporation, et al., Appellees. ON APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF NORTH CAROLINA APPELLANTS’ APPENDIX J ack Greenberg James M. Nabrit, III Michael Meltsner 10 Columbus Circle New York 19, N. Y. Conrad O. P earson 203% E. Chapel Hill St. Durham, North Carolina Attorneys for G. C. Simkins, Jr., et al. INDEX TO APPENDIX Complaint ....................................................................... la Motion to Dismiss............................................................ 19a Affidavit of Benjamin Cone ........................................... 20a Exhibit A to Affidavit............................................ 22a Exhibit B to Affidavit............................................ 32a Exhibit C to Affidavit............................................ 45a Affidavit of Harold Bettis............................................ 55a Affidavit of Mose K iser................................. 60a Motion for Preliminary Injunction........................... - 68a Motion for Summary Judgment ................................. 72a Affidavit of George C. Simkins, Jr............................... 76a Exhibit A to Affidavit............................................ 80a Affidavit of E. C. Noel, III ........................................ 81a Affidavit of A. Y. Blount, Jr. .................................... 84a Affidavit of A. J. Taylor................................................... 87a Affidavit of Donald R. Lyons ........................................ 89a Affidavit of Barbara W ise............................................ 91a PAGE Relevant Docket E ntries................................................. la 11 Letter of William F. Henderson................................. 104a Excerpts from State Plan ............................................. 106a Rules and Regulations for Hospital Licensure in North Carolina........................................................... 122a Transmission of License ............................................. 158a Transmission of License ............................................ 160a Brochure of Woman’s College................. ................. . 162a Excerpt from Woman’s College Catalogue .............. 164a Motion to Intervene ........ 165a Pleading in Intervention ... ..... .... ................. ............ 166a Affidavit and Report of Alanson W. Willcox .......... 173a Affidavit of Naomi W. Wynn ........... ......................... 181a Affidavit of Alice C. Boehret........................................ 184a Notice............................................ 186a Affidavit of George C. Simians, Jr. .............................. 187a Order Allowing Intervention........ — .... ................... . 188a Motion for Summary Judgment ............................ 189a Stipulation ..................................................................... 190a PAGE Project Construction Application .............................. . 93a I l l Stipulation ....... 191a Order Denying Preliminary Injunction............... 192a Reporter’s Transcript ......................... 193a Findings of Fact, Conclusions of Law and Opinion .... 195a Judgment ..... 223a Notice of Appeal ................... ................................. -..... 224a Notice of Appeal........................................................... 225a PAGE Relevant Docket Entries Simkins, et al. and United States of A merica as intervenor, -v - T he Moses H. Cone Memorial H ospital, A /Corporation, et al. 2-12-62 Filed Complaint and cost bond 4- 2-62 Filed defendants’ Motion to Dismiss 5- 4-62 Filed plaintiffs’ Motion for Preliminary Injunc tion and Summary Judgment 5-4-62 Filed affidavits of Dr. George C. Simkins, Jr., Dr. A. V. Blount, Jr., Dr. Walter J. Hughes, Dr. Norman N. Jones, Dr. Girardeau Alexander, Dr. Milton H. Barnes, Dr. W. L. T. Miller, Dr. E. C. Noel, III, Dr. F. E. Davis, A. J. Taylor, Donald R. Lyons and Barbara Wise 5-4-62 Filed plaintiffs’ Exhibits A through 0 in support of Motion for Summary Judgment 5-8-62 Filed Motion of United States to Intervene and Pleading of the United States in. Intervention 5- 14-62 Filed memorandum and affidavit in support of United States Motion to Intervene, affidavit of Alanson W. Willcox, Gen. Counsel for Dept, of HEW. 6- 8-62 Filed defendants’ Response to Plaintiffs’ Motion for Summary Judgment and Preliminary Injunc tion with affidavits attached 2a 6-15-62 Filed Affidavit of Dr. George C. Simkins, Jr. 6-26-62 Case called for hearing before Judge Stanley on defendants’ Motion to Dismiss, plaintiffs’ motion for Preliminary Injunction, plaintiffs’ motion for Summary Judgment and motion by the United States of America to Intervene. Oral arguments heard. Court denied plaintiffs’ motion for Pre liminary Injunction. Court granted motion by United States of America to Intervene. As to Dismiss the court ordered that by July 20, 1962 the parties are to file Requests for Findings of Fact, Conclusions of Law and any further Briefs either party desires to file; parties are to then exchange same and by July 31, 1962 each party is to file any objection to the Requested Findings and Conclusions filed by the opposing party with specific reasons for their objections; the Court will then take the matter under advisement for ruling without further oral arguments unless re quested by the Court; the ruling of the Court on these motions will be determinative of the Case. 6- 26-62 Filed Order signed by Judge Stanley, granting United States’ Motion to Intervene. 7- 9-62 Filed Intervenor’s Motion for Summary Judg ment 7-10-62 Filed Stipulation between Intervenor and Defen dants Moses H. Cone Memorial Hospital and Harold Bettis 7-10-62 Filed Stipulation between Intervenor and defen dants Wesley Long Community Hospital and A. 0. Smith Relevant Docket Entries 3a 7-12-62 7-20-62 7-20-62 7-20-62 7-30-62 7-30-62 12-5-62 12-17-62 1-4-63 1-16-63 Filed Order signed by Judge Stanley Denying Preliminary Injunction Filed plaintiffs’ Requests for Findings of Fact and Conclusions of Law Filed Conclusions of Law proposed by United States Filed Defendants’ Request for Findings of Fact and Conclusions of Law Filed Objections by defendants to Request for Findings of Fact and Conclusions of Law sub mitted by plaintiffs and intervenor Filed plaintiffs’ Response to Defendants’ Re quested Findings of Fact. Filed Findings of Fact, Conclusions of Law and Opinion of Judge Stanley Filed Judgment Signed by Judge Stanley order ing: 1. Denying motions for summary judgment by plaintiffs and the United States 2. Granting defendants’ motions to dismiss the complaint and pleading in intervention for lack of jurisdiction 3. Defendants are entitled to their costs Filed plaintiffs’ Notice of Appeal to the United States Court of Appeals Filed intervenor’s Notice of Appeal to the United States Court of Appeals Relevant Docket Entries 4a Complaint (Filed: February 12, 1962) IN THE UNITED STATES DISTRICT COURT F or the Middle D istrict of North Carolina Greensboro D ivision N o. C-57-G-62 G. C. Simkins, Jr., A. V. Blount, Jr., W alter J. H ughes, Norman N. J ones, Girardeau A lexander, Milton H. B arnes, W. L. T. Miller, E. C. Noel, III, F. E. Davis, A. J. T aylor and D onald R. L yons, Plaintiffs, Moses H. Cone Memorial H ospital, A Corporation, H arold B ettis, Director of the Moses H. Cone Memorial Hos pital, and W esley L ong Community H ospital, A Cor poration, and A. 0. Sm ith , Administrator of the Wesley Long Community Hospital, Defendants. I The jurisdiction of this Court is invoked pursuant to Title 28, United States Code, Section 1343(3). This is a suit in equity authorized by Title 42, United States Code, Section 1983, to be commenced by any citizen of the United States or other person within the jurisdiction thereof, to redress the deprivation under color of state law, statute, ordinance, regulation, custom and usage of rights, privi- 5 a leges and immunities secured by the Fourteenth Amend ment to the Constitution of the United States, Section 1, and by Title 42, United States Code, Section 1981, providing for the equal rights of citizens and all persons within the jurisdiction of the United States as hereinafter more fully appears. The jurisdiction of this Court is invoked pursuant to Title 28, United States Code, Section 1331, as this action arises under the Fourteenth Amendment to the Constitu tion of the United States, Section 1, and the Fifth Amend ment to the Constitution of the United States and the matter in controversy exceeds, exclusive of interest and costs, the sum or value of ten thousand dollars ($10,000.00). II. The plaintiffs bring this action on their own behalf and on behalf of all others similarly situated pursuant to Rule 23(a)(3) of the Federal Rules of Civil Procedure. There are common questions of law and fact affecting the rights of all other Negro physicians, dentists, and patients, to use the facilities of the Moses H. Cone Memorial Hospital and the Wesley Long Community Hospital, who are so numer ous as to make it impracticable to bring all before this Court. A common relief is sought. The interests of said class are adequately represented by plaintiffs. III. This is a proceeding for injunction restraining defendants herein from continuing to enforce the policy, practice, cus tom, and usage of denying plaintiff physicians and dentists the use of staff facilities at the Moses H. Cone Hospital and the Wesley Long Community Hospital in Greensboro, North Carolina, on the ground of race. Complaint 6a This is a proceeding for an injunction restraining de fendants herein from continuing to enforce the policy, prac tice, custom, and usage of denying and abridging admission of patients on the basis of race and refusing to permit patients to be treated by their own physicians and dentists on the basis of race, at the Moses H. Cone Memorial Hos pital and the Wesley Long Community Hospital in Greens boro, North Carolina. Complaint IV. This is an action for a declaratory judgment pursuant to Title 28, United States Code, §§ 2201 and 2202. There is an actual controversy now existing between the parties to this action as to which plaintiffs seek the judgment of this Court. Plaintiffs seek a definition and a declaration of the legal rights and relations of the parties in the subject matter in controversy, to wit, the question: Whether §291e(f) of Title 42, U.S.C. (Title VI of the Public Health Service Act or Hill-Burton Act) and Regula tion 53.112 of the Public Health Service Regulations, 42 C.F.R. § 53-112, 21 F.R. 9841, pursuant thereto, which pro vide for the construction of hospital facilities and the promotion of hospital services with funds of the United States Government on a separate but equal basis as follows: 291e. General regulations.—Within six months after [Aug. 13, 1946] the enactment of this title, the Surgeon General, with the approval of the Federal Hospital Council and the Administrator [Secretary of Health, Education, and Welfare], shall by general regulation prescribe— # # # # * (f) The State plan shall provide for adequate hos pital facilities for the people residing in a State, with- 7a out discrimination on account of race, creed, or color, and shall provide for adequate hospital facilities for persons unable to pay therefor. Such regulation may require that before approval of any application for a hospital or addition to a hospital is recommended by a State agency, assurance shall be received by the State from the applicant that (1) such hospital or addition to a hospital will be made available to all persons residing in the territorial area of the applicant, without discrimination on account of race, creed, or color, but an exception shall be made in cases where separate hospital facilities are provided for separate popula tion groups, if the plan makes equitable provision on the basis of need for facilities and services of like quality for each such group; and (2) there will be made available in each such hospital or addition to a hospital a reasonable volume of hospital services to persons unable to pay therefor, but an exception shall be made if such a requirement is not feasible from a financial standpoint. § 53.112. Nondiscrimination. Before a construction application is recommended by a State agency for approval, the State agency shall obtain assurance from the applicant that the facilities to be built with aid under the Act will be made available without discrimi nation on account of race, creed, or color, to all persons residing in the area to be served by that facility. How ever, in any area where separate hospital, diagnostic or treatment center, rehabilitation or nursing home facilities, are provided for separate population groups, the State agency may waive the requirement of assur ance from the construction applicant if (a) it finds that Complaint 8a the plan otherwise makes equitable provision on the basis of need for facilities and services of like quality for each such population group in the area, and (b) such finding is subsequently approved by the Surgeon General. Facilities provided under the Federal Act will be considered as making equitable provision for separate population groups when the facilities to be built for the group less well provided for heretofore are equal to the proportion of such group in the total population of the area, except that the State plan shall not program facilities for a separate population group for construction beyond the level of adequacy for such group. are unconstitutional, invalid and void in that they deprive plaintiffs, and the class which they represent, rights, privi leges, and immunities guaranteed by the due process and equal protection clauses of the Fourteenth Amendment to the Constitution of the United States and the due process clause of the Fifth Amendment to the Constitution of the United States. Complaint V . Plaintiffs are Negro citizens of the United States and the State of North Carolina residing in the City of Greens boro. Plaintiffs A. V. Blount, Jr., Walter J. Hughes, Norman N. Jones, Girardeau Alexander, E. C. Noel, III, and F. E. Davis are qualified Negro medical doctors practicing in Greensboro, North Carolina. Plaintiffs G. C. Simkins, Jr., Milton H. Barnes and W. L. T. Miller are qualified Negro dentists practicing in Greensboro, North Carolina. Plain tiffs seek admission to the staff facilities at the Moses H. 9a Cone Memorial Hospital and the Wesley Long Community Hospital without discrimination on the ground of race or color. Plaintiff A. J. Taylor is a Negro citizen of the United States and the State of North Carolina and a resident of the City of Greensboro. He has a confirmed gastric ulcer of 35 years duration which requires constant medical super vision, dietary restrictions and the administration of anti cholinergic drugs. Because of the nature of his illness, he has been advised to submit himself to periodic clinical evaluation. These periodic evaluations include detailed diagnostic X-ray studies, laboratory procedures, and tests of such nature as to require the most advanced diagnostic facilities available. He desires to enter either the Wesley Long Community Hospital or the Moses H. Cone Memorial Hospital where complete medical equipment and the best facilities for treatment in the Greensboro area are avail able, and he desires treatment from his physician, Hr. E. C. Noel, III. He cannot be admitted to the Wesley Long Com munity Hospital as the Wesley Long Community Hospital follows a policy, practice, custom and usage of refusing to admit Negroes to the use of its facilities. He cannot enter the Moses H. Cone Memorial Hospital on the same basis as whites nor can he enter the Moses H. Cone Memorial Hospital and be treated by his physician because the Moses H. Cone Memorial Hospital will not admit Negro doctors to staff facilities. Plaintiff Donald R. Lyons is a Negro citizen of the United States and the State of North Carolina and a resident of the City of Greensboro, North Carolina. He suffers from an impacted lower third molar and desires it removed at the hospital where the best dental facilities are available. The Wesley Long Community Hospital and the Moses H. Complaint 10a Cone Memorial Hospital are the only hospitals in the Greensboro area with dental facilities. He desires to be treated by his dentist, Dr. George C. Simkins, at one of these hospitals. He cannot be admitted to the Wesley Long Community Hospital because the Wesley Long Community Hospital follows a policy, practice, custom, and usage of refusing to admit Negroes to the use of its facilities. He cannot enter the Moses H. Cone Memorial Hospital on the same basis as whites, nor can he enter the Moses H. Cone Memorial Hospital and be treated by his dentist because the hospital will not admit Negro doctors or dentists to staff privileges. Complaint VI. Defendant, Board of Trustees of the Moses H. Cone Memorial Hospital, Inc. is a body corporate under and by virtue of the laws of North Carolina. Pursuant to its cor porate objectives expressed in its charter, it has established and now maintains a tax exempt and state licensed hospital in the City of Greensboro, County of Guilford, State of North Carolina, known as the Moses H. Cone Memorial Hospital. Defendant has full power to make all rules and regulations for the conduct, government, and maintenance of said hospital. Defendant, Harold Bettis, is the Director of the Moses H. Cone Memorial Hospital, Inc. Defendant, Board of Trustees of the Wesley Long Com munity Hospital, Inc. is a body corporate under and by virtue of the laws of the State of North Carolina. Pursuant to its corporate objectives expressed in its charter, it has established and now maintains a tax exempt and State licensed hospital in the City of Greensboro, County of Guil ford, State of North Carolina known as the Wesley Long 11a Community Hospital. The Board of Trustees exercises management and control over the affairs of the hospital. Defendant, A. 0. Smith, is the Administrator of the Wesley Long Community Hospital. Both the Moses H. Cone Memorial Hospital and the Wesley Long Community Hospital are exempt from taxes assessed by the City of Greensboro and the County of Guilford, North Carolina. Both the Moses H. Cone Memorial Hospital and the Wesley Long Community Hospital are required to be licensed by the State of North Carolina pursuant to Chapter 131, Code of North Carolina, § 131-126.3. Said license is obtained by application to the North Carolina Medical Care Commission pursuant to Chapter 131 Code of North Caro lina, § 131-126.4, et seq. Complaint VII. Pursuant to the Articles of Incorporation of the Moses H. Cone Memorial Hospital, out of a Board of Trustees of fifteen members, three members of defendant, Board of Trustees of Moses H. Cone Memorial Hospital, Inc., are named by the Governor of North Carolina; one member is named by the Board of Commissioners of the City of Greensboro, North Carolina; one member is named by the Board of Commissioners of Guilford County; one member is named by the Board of Commissioners of Watanga County, all agents or subdivisions of the State of North Carolina. One member is named by the Guilford County Medical Society, a component of the Medical Society of North Carolina, which society appoints the Board of Medi cal Examiners of the State of North Carolina, and elects four members of the State Board of Health and otherwise acts as an agent of the State of North Carolina fulfilling public functions. 12a Moses H. Cone Memorial Hospital conducts training and is regularly used as a place of training for student nurses from the Women’s College of the University of North Carolina and the Agricultural and Training College of North Carolina, both of which are tax supported, public institutions under the laws of the State of North Carolina. In the course of said training these student nurses sub stantially contribute, without charge to the hospital, valu able nursing services for which it would otherwise pay substantial sums. Complaint VIII. Defendant, Board of Trustees of Moses H. Cone Memo rial Hospital, is the recipient of federal funds under the Hill-Burton program (Title VI of the Public Health Service Act of 1946; 42 U.S.C. §§291, et seq.) in aid of its con struction and expansion program. Moses H. Cone Memorial Hospital has received one hundred and ten thousand dollars ($110,000.00) from the Federal Government for a diagnostic or treatment center, the estimated total cost of which was two hundred and forty thousand dollars ($240,000.00); six hundred and ninety-seven thousand, nine hundred and fifty dollars ($697,950.00) from the Federal Government for an addition (182 beds being added) and remodeling of the General Hospital, the estimated total cost of which was one million eight hundred and fifty thousand dollars ($1,850,000.00); and four hundred and sixty-two thousand dollars ($462,000.00) from the Federal Government for new construction, the estimated total cost of which is five mil lion two hundred and seventy-seven thousand and twenty- three dollars ($5,277,023.00). Said funds have been al located to defendant by the North Carolina Medical Care Commission, an agency of the State of North Carolina 13a charged with the sole responsibility for administering this program of federal grants in aid of hospital construction in the State of North Carolina, including allocation of the federal funds received to the various state hospitals. IX. Defendant, Board of Trustees of Moses H. Cone Hos pital, is pursuing a policy, practice, custom, and usage of barring plaintiff physicians and dentists from admission to staff privileges at the Moses H. Cone Memorial Hospital on the grounds of race as more fully appears hereinafter. Negro patients cannot enter the Moses H. Cone Memorial Hospital on the same terms and conditions as white persons and, if admitted, cannot be treated by their own physicians or dentists solely on the basis of race; the Board of Trus tees of the Moses H. Cone Memorial Hospital, by such policy, practice, custom, and usage violates plaintiffs’ rights to the equal protection of the laws and due process of law guaranteed by the Fourteenth and the Fifth Amendments to the Constitution of the United States. X. Defendant, Board of Trustees of the Wesley Long Com munity Hospital, Inc., is the recipient of federal funds under the Hill-Burton program (Title VI of the Public Health Service Act of 1946; 42 U.S.C. §§291 et seq.) in aid of its construction and expansion program. Wesley Long Community Hospital has received one mil lion, six hundred and seventeen thousand, one hundred and fifty dollars ($1,617,150.00) from the Federal Government for new hospital construction, the total estimated cost of which is three million two hundred and twenty-eight thou sand, one hundred and seventy-eight dollars ($3,228,178.00). Sixty-six thousand dollars ($66,000.00) from the Federal Complaint 14a Government for an adjunct service facility addition, the total estimated cost of which is one hundred and twenty thousand dollars ($120,000.00); and two hundred and sixty- live thousand, six hundred and fifty dollars ($265,650.00) from the Federal Government for a nursing home addition, the estimated total cost of which is four hundred eighty- three thousand dollars ($483,000.00). Said funds have been allocated to defendant by the North Carolina Medical Care Commission, an agency of the State of North Carolina charged with the sole responsibility for administering this program of federal grants in aid of hospital construction in the State of North Carolina, including allocation of the federal funds received to the various state hospitals. Plaintiffs allege that defendant, Board of Trustees of the Wesley Long Community Hospital, Inc., is pursuing a policy, practice, custom and usage of barring plaintiff physicians and dentists from admission to staff privileges at the Moses H. Cone Memorial Hospital on the grounds of race as more fully appears hereafter. Plaintiffs allege that the Wesley Long Community Hospital is pursuing a policy, practice, custom, and usage of refusing to admit Negro patients to the use of its facilities on the basis of race; such policy, practice, custom, and usage violates plain tiffs’ rights to the equal protection of the laws and due process of law guaranteed by the Fourteenth and Fifth Amendments to the Constitution of the United States. XI. On or about March 8, 1960, plaintiff Simkins wrote to Benjamin Cone, Chairman of the Board of Trustees of the Moses H. Cone Hospital, calling his attention to the defendant policy of not admitting Negro physicians and dentists to practice their chosen profession on the staff Complaint 15a of the Moses H. Cone Memorial Hospital. Plaintiff’s letter pointed out that a result of this restrictive policy is that a Negro patient, in need of facilities available at the hos pital, must discharge the qualified Negro doctor or dentist of his choice in order to secure medical services at the hospital, thereby placing both Negro doctor and patient at a disadvantage not imposed upon white doctors and patients. Plaintiff requested that “ early and favorable consideration” be given to the problem of staff restrictions on the basis of race and color at the Moses H. Cone Hospital. Thereafter, on or about April 7, 1960, all physician and dentist plaintiffs wrote defendant Bettis requesting ap plication blanks for admission to the staff of the Moses H. Cone Hospital. Said plaintiffs completed said blanks in the required form and promptly returned them to de fendants. On or about May 4, 1960, defendant Board of Trustees of Cone Hospital, declined to accept plaintiffs’ applica tions. Rejection of plaintiffs’ applications by defendant was due to defendant’s policy, practice, custom and usage of discriminating as to staff admissions on the ground of race and color. Such policy, practice, custom, and usage violates plaintiffs’ rights to equal protection of the laws and due process of the law under the Constitution and laws of the United States. Complaint XII. On or about March 8, 1960, plaintiff Simkins wrote Mose Kiser, Chairman of the Board of Trustees of the Wesley Long Community Hospital, calling his attention to the policy of refusing admission to Negro physicians and dentists on the staff of the Wesley Long Hospital. 16a Thereafter, on or about April 7, 1960, all physician and dentist plaintiffs wrote defendant Smith requesting ap plication blanks for admission to the staff of the Wesley Long Hospital. By letter under date of April 26, 1960, defendant Smith acknowledged receipt of plaintiffs’ request for application blanks for admission to the medical staff of the Wesley Long Hospital. Defendant advised plaintiffs that “due consideration” would be given to their request prior to the time of the opening of the new Wesley Long Hospital, currently under construction and financed in part by Hill- Burton funds. The new Wesley Long Hospital is now open and occupied and plaintiffs’ request has not yet been honored. Plaintiffs allege that in light of the long-continued policy and practice whereby qualified Negro physicians and den tists have been excluded from the medical staff of the Wesley Long Community Hospital, the continued deferral of action on plaintiffs’ request was due solely to their race and color, and is tantamount to a rejection of their applica tions on these grounds; that this delay by defendants is a continuance of the policy, practice, custom, and usage of barring plaintiffs from the hospital’s staff on the grounds of race and color and, therefore, violates their rights to equal protection of the laws and due process of law under the Constitution and laws of the United States. XIII. The plaintiff physicians and dentists allege that they are now suffering and will continue to suffer irreparable injury by the maintenance of defendant’s policy, practice, custom, and usage as set forth herein, including loss of earnings, deprivation of the opportunity to further develop the skills necessary for continued proficiency of their Complaint 17a chosen professions. They have no plain, adequate, or com plete remedy at law to redress these wrongs and this suit for injunction is their only means of securing adequate relief. The pursuit of any other remedy would be futile, inconvenient, and would not offer them substantial relief. The plaintiff-patients allege that they are now suffering and will continue to suffer irreparable injury by the main tenance of defendants’ policy, practice, and usage as set forth herein, including deprivation of the opportunity of receiving medical care in the most complete medical facili ties available in their locality and the use of said facilities with the treatment of their own physicians and dentists. They have no plain, adequate, or complete remedy at law to redress these wrongs and this suit for injunction is their only means of securing adequate relief. The pursuit of any other remedy would be futile, inconvenient and would not offer them substantial relief. 'Wherefore, plaintiffs respectively pray this Court to advance this cause on the docket and order a speedy hear ing thereof and, upon such hearing, to : 1. Declare § 291e(f) of Title 42, U.S.C. (Title VI, Public Health Service Act or Hill-Burton Act) and Regulation 53.112 pursuant thereto to be unconstitutional, void, and invalid in that by their separate-but-equal provisions they deprive plaintiffs, and those whom they represent, of rights, privileges, and immunities guaranteed by the due process and equal protection clauses of the Fourteenth Amendment and the due process clause of the Fifth Amendment to the Constitution of the United States. 2. Forever enjoin defendants herein, their agents, and successors and those acting in concert with them or at their direction, from continuing to enforce the policy, prac tice, custom, and usage of denying plaintiffs’ admission to Complaint 18a the medical staffs of the Moses H. Cone Memorial Hospital and the Wesley Long Community Hospital on the basis of race, as contrary to the due process and equal protection clauses of the Fourteenth Amendment to the United States Constitution and the due process clause of the Fifth Amendment. 3. Forever enjoin defendants herein, their agents and successors and those acting in concert with them, or at their direction, from continuing to enforce the policy, prac tice, custom and usage of denying admission to patients on the basis of race and in any way conditioning or abridging the admission to, and use of, the said facilities of the Moses H. Cone Memorial Hospital and the Wesley Long Com munity Hospital on the basis of race as contrary to the due process and equal protection clauses of the Fourteenth Amendment to the United States Constitution and the due process clause of the Fifth Amendment. 4. Allow the plaintiffs their costs herein and such further, other additional relief as may appear to this Court to be equitable and just. Kespectfully submitted, Jack Greenberg James M. Nabrit, III M ichael Meltsner 10 Columbus Circle New York 19, New York Conrad 0 . P earson 203% East Chapel Hill Street Durham, North Carolina Attorneys for Plaintiffs Complaint 19a Motion to Dismiss (Filed: April 2, 1962) IN THE UNITED STATES DISTRICT COURT F or the Middle D istrict or North Carolina Greensboro D ivision Civil Action No. C-57-G-62 [ s a m e t i t l e ] The defendants move the Court to dismiss this action because the Court lacks jurisdiction over the subject matter of the action for the reason that it is one brought by indi viduals seeking redress for the alleged invasion of their civil rights by private corporations and other individuals. In support of this motion, the defendants will rely on the affidavits of Benjamin Cone (with Exhibits A, B, and C attached thereto), Harold Bettis, and Mose Kiser, all of which are annexed hereto. This the 2nd day of April, 1962. Charles E. R oth Of counsel for defendants, The Moses H. Cone Memorial Hospital and Harold Bettis T hornton H. Brooks Of counsel for defendants, Wesley Long Community Hospital, Inc. and A. 0. Smith 20a Affidavit o f Benjamin Cone in Support o f Motion to Dismiss (Filed: April 2, 1962) IN THE UNITED STATES DISTRICT COURT F ob the M iddle D istrict of North Carolina Greensboro D ivision Civil Action No. C-57-G-62 [ same title] B enjamin Cone, being dnly sworn, says: (1) That he resides at 710 Country Club Drive, Greens boro, North Carolina; that he is a member of the Board of Trustees, and is the President, of The Moses H. Cone Memorial Hospital; that he has been a member of the said Board of Trustees since May 19, 1947, and has been the President of the said corporation since May 6, 1953; and that he is familiar with the corporate history of The Moses H. Cone Memorial Hospital; (2) That The Moses H. Cone Memorial Hospital was originally incorporated as a private corporation under the general corporation laws of the State of North Carolina, and under the name of The Moses H. Cone Memorial Hos pital, Incorporated, pursuant to Articles of Incorporation which were filed in the Office of the Secretary of State of the State of North Carolina on the 29th day of May, 1911, and which are recorded in the Office of the Clerk of the Superior Court of Guilford County, North Carolina, in Corporation Book D, at Page 174; and that there is at- 21a Affidavit of Benjamin Cone in Support of Motion to Dismiss tached hereto and marked Exhibit A a certified copy of these original Articles of Incorporation; (3) That The Moses H. Cone Memorial Hospital was subsequently granted a legislative charter by the General Assembly of the State of North Carolina under Chapter 400 of the Private Laws of North Carolina, Session of 1913; and that a printed and certified copy of this legislative charter as set forth in Chapter 400 of the Private Laws of North Carolina, Session of 1913, is attached hereto and marked Exhibit B; (4) That Section 10 of the legislative charter of The Moses H. Cone Memorial Hospital (Exhibit B) was amended by the General Assembly of the State of North Carolina by Chapter 234 of the 1961 Session Laws of North Carolina, and that this amendment became effective on the 18th day of April, 1961; and that there is attached hereto and marked Exhibit C a printed and certified copy of the revised legislative charter of The Moses H. Cone Memorial Hospital with this amendment in place. This the 28 day of March, 1962. B enjamin Cone Subscribed and sworn to before me this 28 day of March, 1962. Madge S. Omohundro Notary Public My commission expires Nov. 27, 1962. (Seal) 22a EXHIBIT A ANNEXED TO AFFIDAVIT OF BENJAMIN CONE North Carolina Guilford County 9081 ARTICLES OF INCORPORATION OF THE MOSES H. CONE MEMORIAL HOSPITAL, INCORPORATED (Filed: April 2, 1962) KNOW ALL MEN BY THESE PRESENTS: That We, B ertha L. Cone (Widow of Moses H. Cone, Deceased), E tta Cone, Ceasar Cone, Bernard M. Cone, J ohn M. B ernhardt, George W. W atts, H. A. F oushee, R. A. D oughton, J ames H. P ou and R obert R. K ing, do associate ourselves into a corporation under and by virtue of the laws of North Carolina, and do hereby severally agree, for ourselves and our successors, as follows: F irst: That the name of this corporation is and shall perpetually be “ T he Moses H. Cone Memorial H ospital, I ncorporated” (except that the word “ I ncorporated” may be omitted if so authorized by an act of the General Assem bly of North Carolina), under which we may contract and be contracted with, sue and be sued, and have perpetual succession, and a common seal, which said corporation, through its governing body, may change or alter at pleasure, and that we and our successors shall be known and desig nated as the Board of Trustees of T he Moses H. Cone Memorial H ospital, Incorporated, except that the word “ Incorporated” may be omitted as above provided. 23a Second: That the location of the principal office of the corporation shall be in or near Greensboro, in the County of Guilford and State of North Carolina. T hird : The objects for which this corporation is formed are, among other things, as follows: In the corporate name to build, establish, own, conduct and maintain a hospital or hospitals, with the necessary appliances and equipment, and any and all other necessary or suitable buildings, in the County of Guilford or other county or counties in North Carolina, for the reception and treatment of persons who may need medical or surgical treatment or attention; the training of nurses, and the giving and receiving of instruc tion by lectures or otherwise, or both. F ourth : That the said corporation may, in the corporate name, acquire, receive, take, hold and own by gift, devise or otherwise, property of all kinds; that is to say, personal, real and mixed, without restriction as to quantity or value thereof, absolutely, in trust or otherwise, and apply the income therefrom or principal thereof under and as pro vided by the terms of the gift, devise, instrument or instru ments under which it may or shall acquire such property, with full power to sell, transfer, invest, re-invest, or loan on such satisfactory security as the Board of Trustees may think advisable and for the best interest of the said cor poration ; provided, however, that they shall in no way vio late any condition of, or otherwise appropriate any prop erty which the said corporation may acquire otherwise than as provided by the terms of the gift, devise, instrument or instruments under which it may have acquired such prop erty. The corporation shall no capital stock. Exhibit A Annexed to Affidavit of Benjamin Cone 24a F ifth : The names and post office addresses of the incor porators are as follows: Exhibit A Annexed to Affidavit of Benjamin Cone Name P. 0. Address Bertha L. Cone Blowing Rock, N. C. Etta Cone Baltimore, Md. Ceasar Cone Greensboro, N. C. Bernard M. Cone Greensboro, N. C. John M. Bernhardt Lenoir, N. C. Gfeorge W. Watts Durham, N. C. H. A. Foushee Durham, N. C. R. A. Doughton Sparta, N. C. James H. Pou Raleigh, N. C. Robert R. King Greensboro, N. C. Six t h : That Bertha L. Cone shall be president of the said corporation until the second Wednesday in May, 1913, and until her successor shall have been elected and quali fied, and that Ceasar Cone shall be Secretary and Trea surer of the corporation until the second Wednesday in May, 1913, and until his successor shall have been elected and qualified. Seventh : That the said Trustees shall have power to make all such rules, regulations, by-laws and ordinances as they may deem necessary or useful for the conduct, government and maintenance of said corporation and the management of its affairs, and may alter, amend or repeal the same at pleasure by the vote of a majority of the Board; and the said Board of Trustees shall have full 25a power to prescribe the classes of patients as regards dis eases who shall be admitted or refused or dismissed; pro vided, however, that no patient shall be refused admission nor be discharged because of inability to pay. E ighth : That in addition to the powers herein ex pressly set out this corporation shall have and enjoy all the powers and privileges conferred by the General Cor poration Law of this State upon corporations of like char acter, insofar as may be necessary to carry out fully the purposes of this corporation. Nin t h : That the Board of Trustees of this corporation shall apply to the next session of the General Assembly of North Carolina for the passage of an act, granting a perpetual charter with all usual powers, and whereby a Board of Trustees for this corporation, consisting of fif teen members, shall be created with perpetual succession, to hold and administer the property, franchises and effects of this corporation, and to receive any property or gifts and to fully carry out the trusts imposed upon them. Of the said Board of Trustees eight shall be named by Mrs. Bertha L. Cone, and their successors shall be ap pointed by her so long as she may live and shall desire to exercise the power of appointment. After her death, or after she shall have, by writing duly filed, renounced the power of appointment, the vacancies among the said eight Trustees shall be filled by the Board of Trustees by elec tion. Of the remaining seven Trustees three shall be named by the Governor of North Carolina, and their successors shall be named by the Governor of North Carolina and his successors as their terms shall expire or as vacancies Exhibit A Annexed to Affidavit of Benjamin Cone occur. 26a One, and his successors, shall be named by the Board of Commissioners of the City of Greensboro and their successors in office. One, and his successors, shall be named by the Board of Commissioners of Guilford County and their successors in office. One, and his successors, shall be named by the Guilford County Medical Society and its successors in office. One, and his successors, shall be named by the Board of Commissioners of Watauga County and their succes sors in office. All appointments of Trustees shall be for a term of four years, commencing on the second Wednesday of May, 1913, except the eight Trustees to be nominated by Mrs. Bertha L. Cone, and of the eight nominated by her four shall hold office for two years from and after the said second Wednesday in May, 1913, and the other four for four years from and after said date, and their successors shall be appointed for full terms of four years. Should any vacancy occur in the Board of Trustees, such vacancy may be filled by appointment by the person or board hereinbefore vested with the power to appoint originally, and such appointment shall be for the unex pired term of the Trustee whose death or resignation caused the vacancy. T enth : That until the General Assembly of North Caro lina, at its session in 1913 or at some subsequent session, shall enact an act of incorporation of the character herein before mentioned, and satisfactory to and accepted by the Board of Trustees named in paragraph five of these Ar ticles of Incorporation, this corporation shall be admin istered by the Board of Trustees named in said fifth para Exhibit A Annexed to Affidavit of Benjamin Cone 27a graph hereof, and any vacancies occurring in said Board shall be filled by appointment by Mrs. Bertha L. Cone should she be alive, and if she should not be alive when such vacancy shall occur, the surviving members of the Board of Trustees shall have the right to fill said vacancy by election, a majority vote determining the choice. E leventh : That no Trustee shall receive any compen sation beyond actual and necessary expenses incident to or connected with the performance of his duties as such Trustee, or as a member of some committee, or while per forming some duty specially imposed upon him by the Board of Trustees. In W itness W hereoe, we have hereunto set our several and respective hands and seals on this the 25th day of May, 1911. Exhibit A Annexed to Affidavit of Benjamin Cone S/ B ertha L. Cone (seal) 8/ E tta Cone (seal) 8/ Ceasar Cone (seal) 8/ B ernard M. Cone (seal) 8/ J ames H. P ott (seal) 8/ R obert R. K ing (seal) Testor Bertha L. Cone John R. Hooper 28a State oe M aryland City of B altimore Before me, John R. Hooper, a Notary Public in and for the above named State and City, this day personally ap peared Mrs. Bertha L. Cone and acknowledged the due execution of the foregoing Articles of Incorporation. In W itness W hereof, I have hereunto set my hand and Notarial seal on this the 26th day of May, 1911. s / J o h n R . H ooper Notary Public Notarial Seal My Commission Expires May 6, 1912 Exhibit A Annexed to Affidavit of Benjamin Cone North Carolina Guilford County Before me, W. 0. White, Jr., a Notary Public in and for the above named State and County, this day personally appeared Ceasar Cone and acknowledged the due execution of the foregoing Articles of Incorporation. In W itness W hereof, I have hereunto set my hand and Notarial seal on this the 25th day of May, 1911. s / W. 0. W hite, Jr., N. P. Notarial Seal My Commission Expires Jany 18th, 1913. 29a North Carolina B uncombe County Before me, J. G. Rankin, a Notary Public in and for the above named State and County, this day personally ap peared Etta Cone and acknowledged the due execution of the foregoing Articles of Incorporation. In W itness W hereof, I have hereunto set my hand and Notarial seal on this the 27th day of May, 1911. s / J. G. R ankin, N.P. Notarial Seal My Commission Expires Oct. 11th, 1911. Exhibit A .Annexed to Affidavit of Benjamin Cone North Carolina Guilford County Before me, Thomas S. Beall, a Notary Public in and for the above named State and County, this day personally appeared Bernard M. Cone and Robert R. King and ac knowledged the due execution of the foregoing Articles of Incorporation. In W itness W hereof, I have hereunto set my hand and Notarial seal on this the 29th day of May, 1911. s / T homas S. Beall, N. P. Notarial Seal My Commission Expires Nov. 24, 1912. 30a Nokth Carolina W ake County Before me, C. A. Gosney, A Notary Public in and for the above named State and County, this day personally appeared James H. Pou and acknowledged the due execu tion of the foregoing Articles of Incorporation. In W itness W hereof, I have hereunto set my hand and Notarial seal on this the 29th day of May, 1911. s / C. A. Gosney, N. P. Notarial Seal My Commission Expires January 29th, 1912. Exhibit A Annexed to Affidavit of Benjamin Cone FILED MAT 29, 1911 J. BRYAN GRIMES Secretary of State OFFICE OF THE MOSES H. CONE MEMORIAL HOSPITAL Greensboro, N.C., April 14, 1913 TO THE HONORABLE, THE GOVERNOR OF THE STATE OF NORTH CAROLINA, THE BOARD OF COM MISSIONERS OF THE CITY OF GREENSBORO, THE BOARD OF COMMISSIONERS OF THE COUNTY OF GUILFORD, THE BOARD OF COMMISSIONERS OF THE COUNTY OF WATAUGA, THE GUILFORD COUNTY MEDICAL SOCIETY: 31a This is to certify that in accordance with Section 14 of an act passed by the last General Assembly of North Caro lina, entitled: “A BILL TO BE ENTITLED ‘AN ACT TO RATIFY, APPROVE AND CONFIRM ARTICLES OF INCORPORATION ISSUED ON THE 29th DAY OF MAY, 1911, BY THE SECRETARY OF STATE TO THE MOSES H. CONE MEMORIAL HOSPITAL, INCORPO RATED, AND TO CONFER ADDITIONAL POWERS UPON THE SAID CORPORATION, AND TO PROVIDE FOR ITS FURTHER GOVERNMENT’ The Moses H. Cone Memorial Hospital, Incorporated, at a meeting called and held at the office of the corporation in Greensboro, N.C., at three o’clock P.M., on April 7th, 1913, through its Board of Trustees named in the seventh section of said bill enacted as above, by a majority vote of all the Trustees, accepted the said Act entitled as above as the act and char ter of the corporation, and subject to all the terms thereof. In W itness W hereof, I, Ceaser Cone, Secretary of The Moses H. Cone Memorial Hospital, have hereunto affixed the seal of the said corporation and subscribed my name as such Secretary, on the day and year first above written. / s / Ceasar Cone, Secretary (Seal) Exhibit A Annexed to Affidavit of Benjamin Cone F I L E D APR 23 1913 J. BRYAN GRIMES SECRETARY OF STATE 32a EXHIBIT B ANNEXED TO AFFIDAVIT OF BENJAMIN CONE CHARTER OF THE MOSES H. CONE MEMORIAL HOSPITAL GREENSBORO, N. C. (Filed: April 2, 1962) Being Chapter 400 of the Private Laws of North Carolina Session of 1913 CHAPTER 400 AN ACT TO RATIFY, APPROVE, AND CONFIRM ARTICLES OF INCORPORATION ISSUED ON THE 29th DAY OF MAY, 1911, BY THE SECRETARY OF STATE TO THE MOSES H. CONE MEMORIAL HOS PITAL, INCORPORATED, AND TO CONFER ADDI TIONAL POWERS UPON THE SAID CORPORA TION, AND TO PROVIDE FOR ITS FUTURE GOVERNMENT. Whereas a charter was granted by the Secretary of State of the State of North Carolina to The Moses H. Cone Memorial Hosjutal, Incorporated, by articles of incorpora tion issued on the twenty-ninth day of May, one thousand nine hundred and eleven; and whereas, under and by virtue of said articles of incorporation, The Moses H. Cone Memo rial Hospital, Incorporated, was organized and the charter accepted at Greensboro, North Carolina, on the thirty-first 33a day of May, one thousand nine hundred and eleven; and whereas Mrs. Bertha L. Cone, widow of Moses H. Cone, deceased, has executed deeds and conveyances of gift of a large amount of property, both real and personal, to said corporation, reserving, however, during her life the income on the same, which donations and gifts have been duly accepted by the said corporation upon the terms, condi tions and limitations set out in said conveyances; and deeds therefor have been duly recorded in the registries of the counties of Guilford and Watauga, North Carolina; and whereas it is the desire of the said donor and the said corporation that an act of the General Assembly of North Carolina be passed granting perpetual succession to said corporation and providing for a change in the name of said corporation, and for the perpetual government of the same in accordance with the terms and conditions contained in certain articles of agreement: Now, therefore, The General Assembly of North Carolina do enact: Section 1. That the articles of incorporation issued by the Secretary of State of the State of North Carolina on the twenty-ninth day of May, one thousand nine hundred and eleven, upon the application of Bertha L. Cone, Etta Cone, Ceasar Cone, Bernard M. Cone, James H. Pou, and Robert R. King, under which the said applicants and John M. Bernhardt, George W. Watts, H. A. Foushee, and R. A. Doughton were authorized and empowered to form and organize themselves into a corporation under the name and style of The Moses H. Cone Memorial Hospital, Incorpo rated; and the acts of the said incorporators in organizing said corporation under the said name at Greensboro, North Carolina, on the thirty-first day of May, one thousand nine hundred and eleven, and the conveyance to the said cor- Exhibit B Annexed to Affidavit of Benjamin Cone poration by the said Mrs. Bertha L. Cone of a large amount of property, both real and personal, and the acceptance of said conveyances and gifts of said property by said corporation, upon the terms, conditions, and limitations set out in said conveyances, be and the same are hereby in all respects fully ratified, approved, and confirmed. Sec. 2. That the name of the said corporation be and the same is hereby changed by omitting therefrom the word “ Incorporated” ; and hereafter the name and style of the said corporation shall be, and forever remain, “The Moses H. Cone Memorial Hospital,” and under such name it may contract and be contracted with, sue and be sued, and have perpetual succession, and a common seal, which seal said corporation through its governing body may change or alter at pleasure; and that said governing body shall be known and designated as “ The Board of Trustees of the Moses H. Cone Memorial Hospital.” Sec. 3. That the location of the principal office of this corporation shall be in or near the city of Greensboro, in the county of Guilford, State of North Carolina. Sec. 4. That the objects for which this corporation is formed and given perpetual succession are as follows: In its corporate name to build, establish, own, conduct, and maintain one or more hospitals, with the necessary appli ances and equipment, and any and all other necessary and suitable buildings in the county of Guilford, or in any other county or counties in the State of North Carolina, for the reception and treatment of persons who may need medical or surgical treatment or attention; the training of nurses, and the giving and receiving of instructions by lectures or otherwise, or both. Exhibit B Annexed to Affidavit of Benjamin Cone 35a S ec . 5. That the said corporation may, in its corporate name acquire, receive, take, hold and own, by gift, devise, or otherwise, property of all kinds, that is to say, personal, real, and mixed, without restriction as to quantity or value thereof, absolutely, in trust or otherwise, and apply the income therefrom or principal thereof under and as pro vided by the terms of the gift, devise, instrument or instru ments under which it may or shall acquire such property, with full power to sell, transfer, invest, reinvest, or loan on such satisfactory security as the board of trustees may think advisable and for the best interests of the said cor poration ; Provided, however, that the said board of trus tees shall in no way violate any condition of or otherwise appropriate any property which the said corporation has or may hereafter acquire otherwise than as provided by the terms of the gift, devise, instrument or instruments under which it may have or shall acquire such property. S ec . 6. T h at this co rp o ra tio n shall have no cap ita l stock. S ec . 7. That the board of trustees elected by the incor porators at their meeting held in Greensboro, North Car olina, on the thirty-first day of May, one thousand nine hundred and eleven, shall hold office and control the affairs of the said corporation in accordance with the charter until the second Wednesday in May, one thousand nine hundred and thirteen, at twelve o’clock noon, and thereafter until their successors shall have been appointed and qualified; and the members of the said board of trustees elected as aforesaid to hold office until the said second Wednesday in May, one thousand nineteen hundred and thirteen, are as follows: Exhibit B Annexed to Affidavit of Benjamin Cone Bertha L. Cone. Etta Cone......... .Blowing Rock, N. C. ....... Baltimore, Md. 36a Ceasar Cone..........................Greensboro, N. C. Bernard M. Cone....................Greensboro, N. C. John M. Bernhardt........................Lenoir, N. C. George W. Watts.................. .....Durham, N. C. H. A. Foushee........................... ..Durham, N. C. R. A. Doughton.................... .........Sparta, N. C. James H. Pou............................... Raleigh, N. C. Robert R. King......................Greensboro, N. C. That Bertha L. Cone shall be president of said corpora tion until the said second Wednesday in May, one thousand nine hundred and thirteen, and until her successor shall have been elected and qualified; and that Ceasar Cone shall be secretary and treasurer of the corporation until the said second Wednesday in May, one thousand nine hundred and thirteen, and until his successor shall have been elected and qualified. Sec. 8. That the board of trustees of said corporation and their successors in office shall have power to make all such rules, regulations, by-laws, and ordinances as they may deem necessary or useful for the conduct, government, and maintenance of said corporation and the management of its affairs; and they may alter, amend, or rescind the same at pleasure by a vote of a majority of the said board of trustees; and the said board of trustees shall have full power to prescribe the classes of patients, as regards dis eases, who shall be admitted or refused or dismissed: Pro vided, however, that no patient shall be refused admission nor be discharged because of inability to pay. Sec. 9. That in addition to the powers herein expressly set out, this corporation shall have and enjoy all the powers and privileges conferred by the general corporation law of Exhibit B Annexed to Affidavit of Benjamin Cone 37a this State upon corporations of like character, in so far as may he necessary to carry out fully the purposes of this corporation. Sec. 10. That from and after noon on the second Wednes day in May, one thousand nine hundred and thirteen the said corporation shall be governed by a board of trustees, which shall then and thereafter consist of fifteen (15) mem bers, which said board of trustees shall have and exercise all the powers hereinbefore and hereinafter conferred upon the board of trustees, and shall be known and designated as “ The Board of Trustees of the Moses H. Cone Memorial Hospital” ; and shall have perpetual succession and shall hold and administer the property, franchises, and effects of the corporation, and shall receive, in the name and on behalf of the corporation, any property and gifts and carry out fully the trusts imposed upon the said board of trustees. That the said board of trustees shall be designated and appointed as follows, that is to say: Mrs. Bertha L. Cone shall have the power to nominate and appoint eight (8) members of said board of trustees; and she may nominate and ajjpoint herself as one of the said eight members; and the said power of appointing said eight members of said board of trustees shall be vested in the said Mrs. Bertha L. Cone so long as she may live; and if during the term of office of the said eight members to be nominated and appointed by the said Mrs. Bertha L. Cone any one or more should die, resign, or otherwise become disqualified, it shall be the duty of the said Mrs. Bertha L. Cone to thereupon immediately appoint some one to fill the unexpired term of the said trustee so dying, resigning, or otherwise becoming disqualified. But the said Mrs. Bertha L. Cone may resign said right of appointment, either in Exhibit B Annexed to Affidavit of Benjamin Cone 38a whole or in part, at any time, by filing with the said board of trustees an instrument, duly executed, whereby she may surrender said right of appointment, either in whole or in part. After the death of the said Mrs. Bertha L. Cone, or after the renunciation by her of her right to appoint said eight members of said board of trustees as aforesaid, when ever vacancies shall occur by expiration of term of office, death, resignation, or otherwise, all vacancies among the said eight trustees originally appointed by the said Mrs. Bertha L. Cone shall be filled by election by the board of trustees, a majority vote determining said election; and the member or members so elected shall serve for the term elected and until his successor shall have been elected and qualified. That of the remaining seven (7) members of the said board of trustees, three (3) members, and their successors forever, shall be nominated and appointed by the Governor of North Carolina and his successors in office; and it is hereby made the duty of the Governor of North Carolina to nominate and appoint three (3) members of said board of trustees prior to the second Wednesday in May, one thousand nine hundred and thirteen, and to issue to said members so nominated and appointed by him a commission or certificate of appointment; and as the terms of office of the said three members of the said board of trustees shall hereafter expire, the Governor of North Carolina and his successors in office shall thereafter, prior to the second Wednesday in May of the year in which their terms shall expire, nominate and appoint their successors; and if dur ing the term of office of the three trustees to be so des ignated and appointed by the Governor of North Carolina any one or more should die, resign, or otherwise become disqualified, it shall be the duty of the Governor and his Exhibit B Annexed to Affidavit of Benjamin Cone 39a successors to thereupon immediately appoint some one to fill the unexpired term of the said trustee so dying, resign ing, or otherwise becoming disqualified. That of the said remaining four (4) members of the said board of trustees, one member, and his successors forever, shall be appointed by the board of commissioners of the city of Greensboro and their successors in office; and the said board of commissioners of the city of Greensboro shall appoint and designate said trustee prior to the second Wednesday in May, one thousand nine hundred and thir teen ; and upon the expiration of his term of office the said board of commissioners of the city of Greensboro and their successors in office shall thereafter nominate and appoint his successor; and if a vacancy should occur, caused by the death, resignation, or disqualification of the trustee so appointed, it shall be the duty of the said board of com missioners of the city of Greensboro to immediately nomi nate and appoint his successor, who shall hold office for the unexpired term and until his successor shall have been appointed and qualified. That of the said remaining three (3) members of the said board of trustees, one member, and his successors for ever, shall be appointed by the board of commissioners of the county of Guilford and their successors in office; and the said board of commissioners of the county of Guilford shall appoint and designate said trustee prior to the second Wednesday in May, one thousand nine hundred and thir teen ; and upon the expiration of his term of office, the said board of commissioners of the county of Guilford and their successors in office shall thereafter nominate and appoint his successor; and if a vacancy should occur, caused by the death, resignation, or disqualification of the trustee so appointed, it shall be the duty of the said board of com Exhibit B Annexed to Affidavit of Benjamin Cone 40a missioners of the county of Guilford to immediately nomi nate and appoint his successor, who shall hold office for the unexpired term and until his successor shall have been appointed and qualified. That of the said remaining two (2) members of the said board of trustees, one member, and his successors forever, shall be appointed by the board of commissioners of the county of Watauga and their successors in office; and the said board of commissioners of the county of Watauga shall appoint and designate said trustee prior to the sec ond Wednesday in May, one thousand nine hundred and thirteen; and upon the expiration of his term of office the said board of commissioners of the county of Watauga and their successors in office shall thereafter nominate and appoint his successor; and if a vacancy should occur, caused by the death, resignation, or disqualification of the trustee so appointed, it shall be the duty of the said board of com missioners of the county of Watauga to immediately nomi nate and appoint his successor, who shall hold office for the unexpired term and until his successor shall have been appointed and qualified. That the remaining member of the said board of trustees, and his successors forever, shall be appointed by the Guil ford County Medical Society, its successors, or such body or organization or society as may hereafter succeed to the powers and duties now exercised and performed by the said Guilford County Medical Society; and the said Guil ford County Medical Society shall appoint and designate said trustee prior to the second Wednesday in May, one thousand nine hundred and thirteen; and upon the expira tion of his term of office the said Guilford County Medical Society, or such body, organization, or society as may here after succeed to the powers and duties now exercised and Exhibit B Annexed to Affidavit of Benjamin Cone 41a performed by said Guilford County Medical Society, shall thereafter nominate and appoint his successor; and if a vacancy should occur, caused by the death, resignation, or disqualification of the trustee so appointed, it shall be the duty of the said Guilford County Medical Society to im mediately appoint and nominate his successor, who shall hold office for the unexpired term and until his successor shall have been appointed and qualified. That all appointments of trustees made by the Governor of North Carolina, the board of commissioners of the city of Greensboro, the board of commissioners of the county of Guilford, the board of commissioners of the county of Watauga and the Guilford County Medical Society, and their successors, shall be for a term of four (4) years, commencing at noon on the second Wednesday in May, one thousand nine hundred and thirteen; and the terms of office of the eight members of the said board of trustees to be nominated and appointed by the said Mrs. Bertha L. Cone shall be as follows: Four (4) shall hold office for two years from and after noon of the second Wednesday in May, one thousand nine hundred and thirteen, and the other four (4) members shall hold office for four years from and after noon of the second Wednesday in May, one thousand nine hundred and thirteen; and thereafter their successors shall be appointed or elected, as herein provided, for a full term of four years. It shall be the duty respectively of the Governor of North Carolina, the board of commissioners of the city of Greens boro, the board of commissioners of the county of Guilford, the board of commissioners of the county of Watauga, and the Guilfrd County Medical Society, and their successors, immediately upon designation of the trustee or trustees to be appointed by them, to certify the same to The Moses H. Exhibit B Annexed to Affidavit of Benjamin Cone 42a Cone Memorial Hospital, at G-reensboro, North Carolina, not later than the second Wednesday in May, one thousand nine hundred and thirteen, and therafter as the appoint ments shall be made by them; and the said Governor and the said boards of commissioners and said Guilford County Medical Society are authorized and empowered to issue to their said nominees and appointees such certificates of ap pointment as they may deem proper. That upon the death, resignation, or disqualification from any other cause of any member of the board of trustees, it shall be the duty of the president or secretary of said corporation to immedi ately certify the said vacancy to the person, officer, board, or society having the power to appoint the successor; and it shall thereupon be the duty of such person, officer, board, or society to immediately make and certify the appoint ment of the successor of such trustee. Sec. 11. That if any vacancy shall occur prior to the second Wednesday in May, one thousand nine hundred and thirteen, in the board of trustees named in the seventh sec tion of this act, Mrs. Bertha L. Cone shall have the right to fill such vacancy by appointment; and her said appointee or appointees shall hold office until the said second Wednes day in May, one thousand nine hundred and thirteen, and until their successors shall have been appointed and quali fied. Sec. 12. That the members of the board of trustees shall receive no compensation whatever, except actual and neces sary expenses incident to or connected with the performance of his duties as such trustee, or as a member of some com mittee, or while performing some duty especially imposed upon him by the said board of trustees. Exhibit B Annexed to Affidavit of Benjamin Gone Sec. 13. That it shall be the duty of the corporation to notify such person, officer, board, or society having power to nominate and appoint trustees, of the expiration of the term of office of any trustee appointed by such person, officer, board, or society, at least two (2) months prior to the expiration of the term of office of such trustee; and when a vacancy occurs in the board of trustees by death, resignation, or other disqualification, it shall be the duty of the corporation to immediately notify the person, officer, board or society having authority hereunder to nominate and appoint the successor that such vacancy exists. Sec. 14. That this act shall be null and void unless prior to the first day of May, A. D. one thousand nine hundred and thirteen, the said corporation, through its board of trustees named in the seventh section hereof, shall have, by a majority vote, accepted the same as the act of incor poration and subject to all the terms hereof, and shall have- certified its said act of acceptance to the Governor of this State, the board of commissioners of the city of Greens boro, the board of commissioners of the county of Guilford, the board of commissioners of the county of Watauga, and the Guilfrd County Medical Society. Upon said acceptance by the said board of trustees, this act shall become effective and shall thereafter be and remain the sole instrument of government and charter of said corporation; and that after the acceptance by the said corporation, through its board of trustees, of this act, the corporation created hereby shall succeed to and be vested with all the rights, powers, privileges, franchises, property, and estate now belonging to the said The Moses H. Cone Memorial Hospital, Incor porated; and no deed or conveyance shall be necessary to transfer the said rights, powers, privileges, franchises, Exhibit B Annexed to Affidavit of Benjamin Cone 44a property, and estate from the said The Moses H. Cone Memorial Hospital, Incorporated, to The Moses H. Cone Memorial Hospital, chartered and incorporated by this act. Sec. 15. That this act shall be in force (subject to the conditions aforesaid) from and after its ratification. Ratified this the 8th day of March, A. D. 1913. I, Benjamin Cone, do hereby certify that I am the President of The Moses H. Cone Memorial Hospital, a North Carolina corporation; and that the foregoing is a copy of the legislative charter of the said corporation as set forth in Chapter 400 of the Private Laws of North Carolina, Session of 1913. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the said corporation on this 28 day of March, 1962. / s / B enjamin Cone Benjamin Cone, President The Moses H. Cone Memorial Hospital (SEAL) Exhibit B Annexed to Affidavit of Benjamin Gone 45a EXHIBIT C ANNEXED TO AFFIDAVIT OF BENJAMIN CONE CHARTER OF THE MOSES H. CONE MEMORIAL HOSPITAL Greensboro, North Carolina (Filed: April 2, 1962) Being Chapter 400 of the Private Laws of North Caro lina, Session of 1913, as amended by Chapter 234 of the 1961 Session Laws of North Carolina. CHAPTER 400 AN ACT TO RATIFY, APPROVE, AND CONFIRM ARTICLES OF INCORPORATION ISSUED ON THE 29th DAY OF MAY, 1911, BY THE SECRETARY OF STATE TO THE MOSES H. CONE MEMORIAL HOS PITAL, INCORPORATED, AND TO CONFER ADDI TIONAL POWERS UPON THE SAID CORPORA TION, AND TO PROVIDE FOR ITS FUTURE GOVERNMENT. Whereas a charter was granted by the Secretary of State of the State of North Carolina to The Moses H. Cone Memorial Hospital, Incorporated, by articles of incorpora tion issued on the twenty-ninth day of May, one thousand nine hundred and eleven; and whereas, under and by virtue of said articles of incorporation, The Moses H. Cone Memo 46a rial Hospital, Incorporated, was organized and the charter accepted at Greensboro, North Carolina, on the thirty-first day of May, one thousand nine hundred and eleven; and whereas Mrs. Bertha L. Cone, widow of Moses H. Cone, deceased, has executed deeds and conveyances of gift of a large amount of property, both real and personal, to said corporation, reserving, however, during her life the income on the same, which donations and gifts have been duly accepted by the said corporation upon the terms, conditions and limitations set out in said conveyances; and deeds therefor have been duly recorded in the registries of the counties of Guilford and Watauga, North Carolina; and whereas it is the desire of the said donor and the said corporation that an act of the General Assembly of North Carolina be passed granting perpetual succession to said corporation and providing for a change in the name of said corporation, and for the perpetual government of the same in accordance with the terms and conditions contained in certain articles of agreement: Now, therefore, The General Assembly of North Carolina do enact: Section 1. That the articles of incorporation issued by the Secretary of State of the State of North Carolina on the twenty-ninth day of May, one thousand nine hundred and eleven, upon the application of Bertha L. Cone, Etta Cone, Ceasar Cone, Bernard M. Cone, James H. Pou, and Robert R. King, under which the said applicants and John M. Bernhardt, George W. Watts, H. A. Foushee, and R. A. Doughton were authorized and empowered to form and organize themselves into a corporation under the name and style of The Moses H. Cone Memorial Hospital, Incor porated; and the acts of the said incorporators in organiz ing said corporation under the said name at Greensboro, Exhibit C Annexed to Affidavit of Benjamin Cone North Carolina, on the thirty-first day of May, one thousand nine hundred and eleven, and the conveyance to the said cor poration by the said Mrs. Bertha L. Cone of a large amount of property, both real and personal, and the acceptance of said conveyances and gifts of said property by said corporation, upon the terms, conditions, and limitations set out in said conveyances, be and the same are hereby in all respects fully ratified, approved, and confirmed. Sec. 2. That the name of the said corporation be and the same is hereby changed by omitting therefrom the word “Incorporated” ; and hereafter the name and style of the said corporation shall be, and forever remain, “ The Moses H. Cone Memorial Hospital,” and under such name it may contract and be contracted with, sue and be sued, and have perpetual succession, and a common seal, which seal said corporation through its governing body may change or alter at pleasure; and that said governing body shall be known and designated as “ The Board of Trustees of the Moses H. Cone Memorial Hospital.” Sec. 3. That the location of the principal office of this corporation shall be in or near the city of Greensboro, in the county of Guilford, State of North Carolina. Sec. 4. That the objects for which this corporation is formed and given perpetual succession are as follows: In its corporate name to build, establish, own, conduct, and maintain one or more hospitals, with the necessary appli ances and equipment, and any and all other necessary and suitable buildings in the county of Guilford, or in any other county or counties in the State of North Carolina, for the reception and treatment of persons who may need medical or surgical treatment or attention; the training Exhibit C Annexed to Affidavit of Benjamin Cone 48a of nurses, and the giving and receiving of instructions by lectures or otherwise, or both. Sec. 5. That the said corporation may, in its corporate name acquire, receive, take, hold and own, by gift, devise, or otherwise, property of all kinds, that is to say, personal, real, and mixed, without restriction as to quantity or value thereof, absolutely, in trust or otherwise, and apply the income therefrom or principal thereof under and as pro vided by the terms of the gift, devise, instrument or instru ments under which it may or shall acquire such property, with full power to sell, transfer, invest, reinvest, or loan on such satisfactory security as the board of trustees may think advisable and for the best interests of the said cor poration; Provided, however, that the said board of trus tees shall in no way violate any condition of or otherwise appropriate any property which the said corporation has or may hereafter acquire otherwise than as provided by the terms of the gift, devise, instrument or instruments under which it may have or shall acquire such property. Sec. 6. That this corporation shall have no capital stock. Sec. 7. That the board of trustees elected by the incor porators at their meeting held in Greensboro, North Caro lina, on the thirty-first day of May, one thousand nine hun dred and eleven, shall hold office and control the affairs of the said corporation in accordance with the charter until the second Wednesday in May, one thousand nine hundred and thirteen, at twelve o’clock noon, and thereafter until their successors shall have been appointed and qualified; and the members of the said board of trustees elected as aforesaid to hold office until the said second Wednesday in Exhibit C Annexed to Affidavit of Benjamin Cone 49a May, one thousand nine hundred and thirteen, are as follows: Bertha L. Cone...... Etta Cone............ . Ceasar Cone............ Bernard M. Cone..— John M. Bernhardt George W. Watts... H. A. Foushee........ R. A. Doughton..... James H. Pou....... Robert R. King...... That Bertha L. Cone shall be president of said corpora tion until the said second Wednesday in May, one thousand nine hundred and thirteen, and until her successor shall have been elected and qualified; and that Ceasar Cone shall be secretary and treasurer of the corporation until the said second Wednesday in May, one thousand nine hundred and thirteen, and until his successor shall have been elected and qualified. S ec . 8. That the board of trustees of said corporation and their successors in office shall have power to make all such rules, regulations, by-laws, and ordinances as they may deem necessary or useful for the conduct, government, and maintenance of said corporation and the management of its affairs; and they may alter, amend, or rescind the same at pleasure by a vote of a majority of the said board of trustees; and the said board of trustees shall have full power to prescribe the classes of patients, as regards dis eases, who shall be admitted or refused or dismissed: Pro Exhibit C Annexed to Affidavit of Benjamin Cone Blowing Rock, N. C. ___ Baltimore, Md. .....Greensboro, N. C. ....Greensboro, N. C. ______ Lenoir, N. C. _____Durham, N. C. .........Durham, N. C. ......... ..Sparta, N. C. ........ Raleigh, N. C. — Greensboro, N. C. 50a vided, however, that no patient shall be refused admission nor be discharged because of inability to pay. S ec . 9. That in addition to the powers herein expressly set out, this corporation shall have and enjoy all the powers and privileges conferred by the general corporation law of this State upon corporations of like character, in so far as may be necessary to carry out fully the purposes of this corporation. S ec . 10. That the said corporation shall be governed by a board of trustees which shall consist of fifteen (15) members and which shall be known and designated as “ The Board of Trustees of The Moses H. Cone Memorial Hospital” ; that the said board of trustees shall have and exercise all the powers hereinbefore and hereinafter con ferred upon the board of trustees; shall have perpetual succession; shall hold and administer the property, fran chises, and effects of the corporation, and shall receive, in the name and on behalf of the corporation, any property and gifts; and shall carry out fully the trusts imposed upon the said board of trustees. That the said board of trustees shall be appointed and elected as follows: Three (3) members of the said board of trustees, and their successors forever, shall be appointed by the Gov ernor of North Carolina and his successors in office; one (1) member, and his successors forever, shall be appointed by the City Council of the City of Greensboro and their successors in office; one (1) member, and his successors forever, shall be appointed by the Board of Commissioners of the County of Guilford and their successors in office; one (1) member, and his successors forever, shall be ap pointed by the Guilford County Medical Society and its Exhibit C Annexed to Affidavit of Benjamin Cone 51a successors, or by such body or organization or society as may hereafter succeed to the powers and duties now exer cised and performed by the said Guilford County Medical Society; and the remaining nine (9) members, and their successors forever, shall be elected by the members of the said board of trustees in office from time to time. The election of trustees by the board of trustees shall be by a majority vote of the members present at any meeting of the said board of trustees at which there is a quorum, and an}r member of the board of trustees may vote upon the election of his successor. That all appointments of trustees made by the Governor of North Carolina, the City Council of the City of Greens boro, the Board of Commissioners of the County of Guil ford, and the Guilford County Medical Society, and their successors, shall be for four (4) year terms, commencing at noon on the second Wednesday in May, 1961, and each four years thereafter. That of the nine (9) remaining trustees to be elected by the members of the board of trustees in office from time to time, five (5) trustees shall be elected for four (4) year terms, commencing at noon on the second Wednesday in May, 1961, and each four years thereafter; and four (4) trustees shall be elected for four (4) year terms, commencing at noon on the second Wednesday in May, 1963, and each four years thereafter. Each trustee so appointed or elected shall serve for the designated term of four (4) years and thereafter until his successor is duly appointed or elected and qualified, except in the case of an appointment or election to fill an unex pired term, in which case the said trustee so appointed or elected shall serve for the remainder of the unexpired term and thereafter until his successor is duly appointed or elected and qualified. Exhibit C Annexed to Affidavit of Benjamin Cone 52a As the terms of office of the members of the said board of trustees shall approach expiration, or upon the death, resignation, or disqualification from any other cause of any member of the board of trustees, it shall be the duty of the president or secretary of the said corporation to certify such approaching expiration or such vacancy to the officer who or to the agency which has the power to appoint or elect the successor of each such trustee; and it shall there upon be the duty of such officer or of such agency to ap point or elect the successor of each such trustee, and in the case of appointments, to certify those appointments to The Moses H. Cone Memorial Hospital, at Greensboro, North Carolina. The Governor of North Carolina, the City Coun cil of the City of Greensboro, the Board of Commissioners of the County of Guilford, and the Guilford County Medical Society, and their successors, are also authorized and em powered to issue to their appointees as members of the board of trustees of The Moses H. Cone Memorial Hos pital, such certificates of appointment as they may deem proper. (Section 10 was amended, to read as above, by Chapter 234 of the 1961 Session Laws of North Carolina, effective 18 April 1961) S ec . 11. That if any vacancy shall occur prior to the second Wednesday in May, one thousand nine hundred and thirteen, in the board of trustees named in the seventh section of this act, Mrs. Bertha L. Cone shall have the right to fill such vacancy by appointment; and her said appointee or appointees shall hold office until the said second Wednes day in May, one thousand nine hundred and thirteen, and until their successors shall have been appointed and qualified. Exhibit C Annexed to Affidavit of Benjamin Cone 53a Sec. 12. That the members of the board of trustees shall receive no compensation whatever, except actual and necessary expenses incident to or connected with the per formance of his duties as such trustee, or as a member of some committee, or while performing some duty especially imposed upon him by the said board of trustees. Sec. 13. That it shall be the duty of the corporation to notify such person, officer, board, or society having power to nominate and appoint trustees, of the expiration of the term of office of any trustee appointed by such person, of ficer, board, or society, at least two (2) months prior to the expiration of the term of office of such trustee; and when a vacancy occurs in the board of trustees by death, resignation, or other disqualification, it shall be the duty of the corporation to immediately notify the person, officer, board or society having authority hereunder to nominate and appoint the successor that such vacancy exists. Sec. 14. That this act shall be null and void unless prior to the first day of May, A.D. one thousand nine hundred and thirteen, the said corporation, through its board of trustees named in the seventh section hereof, shall have, by a majority vote, accepted the same as the act of incor poration and subject to all the terms hereof, and shall have certified its said act of acceptance to the Governor of this State, the board of commissioners of the city of Greens boro, the board of commissioners of the county of Guil ford, the board of commissioners of the county of Watauga, and the Guilford County Medical Society. Upon said ac ceptance by the said board of trustees, this act shall become effective and shall thereafter be and remain the sole in strument of government and charter of said corporation; Exhibit C Annexed to Affidavit of Benjamin Cone 54a and that after the acceptance by the said corporation, through its board of trustees, of this act, the corporation created hereby shall succeed to and be vested with all the rights, powers, privileges, franchises, property, and estate now belonging to the said The Moses H. Cone Memorial Hospital, Incorporated; and no deed or conveyance shall be necessary to transfer the said rights, powers, privileges, franchises, property, and estate from the said The Moses H. Cone Memorial Hospital, Incorporated, to The Moses H. Cone Memorial Hospital, chartered and incorporated by this act. Sec. 15. That this act shall be in force (subject to the conditions aforesaid) from and after its ratification. Ratified this the 8th day of March, A. D. 1913. I, Benjamin Cone, do hereby certify that I am the Presi dent of The Moses H. Cone Memorial Hospital, a North Carolina corporation; and that the foregoing is a copy of the revised legislative charter of the said corporation as set forth in Chapter 400 of the Private Laws of North Carolina, Session of 1913, and as amended by Chapter 234 of the 1961 Session Laws of North Carolina. In W itness W hebeof, I have hereunto set my hand and the seal of the said corporation on this 28 day of March, 1962. / s / B enjamin Cone Benjamin Cone, President The Moses H. Cone Memorial Hospital Exhibit C Annexed to Affidavit of Benjamin Cone (Seal) 55a Affidavit o f Harold Bettis in Support o f Motion to Dismiss (Filed: April 2, 1962) Harold Bettis, being duly sworn, says: (1) That he resides at 906 Harnmel Road, Greensboro, North Carolina; that he is the Director of The Moses H. Cone Memorial Hospital, and a defendant in this action; that he has been associated with the said Hospital since March 1, 1951, as Assistant Director from that date until 1956, as Acting Director from 1956 to 1957, and as Director since 1957; and that he is familiar with the operations of and with the nursing programs at The Moses H. Cone Memorial Hospital; (2) That the Agricultural & Technical College of North Carolina began to use the facilities of The Moses H. Cone Memorial Hospital in connection with its nursing program in 1954; that the College requested that it be permitted to use the Hospital facilities to provide clinical experience for its nursing students, and the Hospital acceded to this request; and that the A. & T. College program is a four- year college course leading to a baccalaureate degree; (3) That the nursing students in the A. & T. College program do not come to The Moses H. Cone Memorial Hospital each day, but at intervals and on schedules which are worked out between their own teachers and the Di rector of Nursing at the Hospital; that the nursing students are accompanied by their own teachers when they do come to the Hospital; that all of their assignments in the Hos pital are performed under the direct supervision and con trol of their own teachers; and that the Hospital has no 56a control over the nursing students except to insure that they do not violate Hospital regulations; Affidavit of Harold Bettis in Support of Motion to Dismiss (4) That The Moses H. Cone Memorial Hospital sub sidizes the meals eaten by the A. & T. College nursing students while they are in the Hospital, and provides free laundry service for their uniforms; that the A. & T. Col lege nursing program has cost the Hospital a total of $3,337.59 in direct charges for meal subsidies and laundry since the program was inaugurated in 1954; and that the Hospital has also furnished conference and instructional rooms which are reserved for the use of the A. & T. College nursing students, without making any charge for the use of these rooms; (5) That the Woman’s College of the University of North Carolina began to use the facilities of The Moses H. Cone Memorial Hospital to provide clinical training for its nursing students in September 1957; that the Woman’s College program is a two-year college course leading to an associate degree; that the program is controlled by the Woman’s College which determines the number of students and the hours they devote to clinical training at the Hos pital, except that the schedules of these student nurses in the Hospital are cleared through the Director of Nursing of the Hospital; that the Woman’s College student nurses are also accompanied by their own teachers when they come to the Hospital, and all of their assignments in the Hospital are performed under the direct supervision and control of their own teachers; and that the Hospital has no control over the Woman’s College student nurses except to insure that they do not violate Hospital regulations; 57a (6) That the nursing students from Woman’s College pay for their own meals in The Moses H. Cone Memorial Hospital, and do not use the Hospital laundry; that during the last four months of their two-year program, the student nurses from Woman’s College work as full-time appren tices at the Hospital, and receive from the Hospital three- fourths of the regular pay of a beginning staff nurse at the Hospital; that this compensation goes direct to the student, and not to the Woman’s College; and that even during this period of apprenticeship and despite the fact that they are then being paid by the Hospital, the Woman’s College nursing students continue to work in the Hospital under the direct supervision and control of their own teachers; (7) That The Moses H. Cone Memorial Hospital author ized a grant of $100,000.00 of its own funds to underwrite the entire cost of the Woman’s College nursing program for its first three academic years from 1957-1960, and the entire direct costs of the program for these three years in the actual amount of $86,835.13 were subsequently paid by the Hospital from its own funds under this initial grant; that in May 1958, the Hospital authorized another grant of $20,000.00 to finance approximately one-half of the esti mated costs of the Woman’s College nursing program for the academic year 1960-1961, and this $20,000.00 was sub sequently paid to the College by the Hospital from its own funds; that in May 1960, the Hospital authorized a third grant of $50,000.00 to finance approximately one-half of the estimated costs of the Woman’s College nursing pro gram for the two academic years 1961-1963; and that $25,000.00 was paid to the Woman’s College under this third grant on March 26,1962, and the balance of this grant Affidavit of Harold Bettis in Support of Motion to Dismiss 58a is available to the Woman’s College to meet the costs of the program for the academic year 1962-1963; (8) That The Moses H. Cone Memorial Hospital has therefore already paid over to the Woman’s College of the University of North Carolina, out of its own funds and in furtherance of the Woman’s College nursing program, sums aggregating $131,835.13, and has a commitment to the program of $25,000.00 more of its own funds; that the Hospital has also provided scholarship loans in the addi tional amount of $10,500.00 for student nurses engaged in the Woman’s College nursing program; that these scholar ship loans are administered entirely by the Woman’s Col lege, and not by the Hospital, and are available only to nursing students selected by the College; and that the Hos pital also furnishes conference and instructional rooms for the use of the Woman’s College nursing students without charge; Affidavit of Harold Bettis in Support of Motion to Dismiss (9) That The Moses H. Cone Memorial Hospital em ploys the same number of persons when the nursing stu dents from the Colleges are in the Hospital as it does when they are not in the Hospital ■ that the Hospital has never relieved any of its personnel requirements through the use of the student nurses from either College; that the nursing programs of both the Agricultural & Technical College of North Carolina and of the Woman's College of the Uni versity of North Carolina are educational programs which are entirely College-centered and College-controlled, and both programs simply use the facilities of the Hospital to provide clinical experience for the nursing students en gaged in the programs; that both of these nursing programs 59a have cost The Moses 11. Cone Memorial Hospital substan tial amounts from its own funds, and the Hospital has never received any direct or substantial benefit under either program; that The Moses H. Cone Memorial Hospital is interested in and has supported both programs as a public service, and in order to foster and to reap the intangible benefits to be derived from the creation of sources of well- trained nurses; but that The Moses H. Cone Memorial Hospital has no priority to employ any nurse graduating in either program, and must compete for the services of these graduates with all other interested hospitals and employers. This the 28th day of March, 1962. H abold Bettis Affidavit of Harold Bettis in Support of Motion to Dismiss Subscribed and sworn to before me this 28 day of March, 1962. Madge S. O m o h t jx d k o Notary Public My commission expires Nov. 27, 1962. (Seal) 60a Affidavit of Mose Kiser in Support of Motion to Dismiss (Filed: April 2, 1962) Mose K isee, first being duly sworn, deposes and says: (1) I am the Chairman of the Board of Trustees of Wes ley Long Community Hospital, Inc., and have held this position for many years. (2) The Certificate of Incorporation of Wesley Long Community Hospital, Inc., is recorded in the Record of Corporations, Book 43, pages 125 et seq., of the Guilford County Superior Court, as follows: “ Certificate of Incorporation of W esley L ong Community Hospital, Inc. This is to certify that we, the undersigned, do hereby associate ourselves into a corporation under and by virtue of the laws of the State of North Carolina, as contained in the public and general statutes of the State of North Carolina and to that end do hereby set forth: 1. The name of the corporation is Wesley Long Com munity Hospital, Inc. 2. The location of the principal office of the corpora tion is at 338 North Elm Street, in the City of Greens boro, in Guilford County, North Carolina, but it may have such other offices and places of business as it may from time to time deem to be advisable. 3. The corporation is a non-profit and charitable coloration and shall have no capital stock and no mem bers other than the members of its Board of Trustees. 61a 4. The object for which the corporation is formed is to conduct, without profit and for charitable and humane purposes, a general hospital in the City of Greensboro or in Guilford County, North Carolina, to gether with such facilities as may from time to time become necessary or desirable in order to best serve the public and the community in which such said hos pital is located. 5. In order to properly prosecute the object set forth in the preceding paragraph hereof, the corpora tion shall have full power and authority to purchase, lease, acquire, by gift, devise, bequest, or otherwise, and to hold, mortgage, sell, convey and otherwise dis pose of, all kinds of property, both real and personal; to build and construct, repair, rebuild and improve hos pital buildings and any other buildings used or useful in the operation of a community general hospital, to charge and receive pay for the use of rooms, services, hospital facilities, board, medicine and supplies ren dered or supplied to patients in any hospital owned or operated by the corporation; and to do any and all other acts incident to, or deemed necessary or advisable in the accomplishment of the object for which the cor poration is formed, provided, that none of the assets of the corporation or the proceeds from the sale thereof, or any property received in exchange therefor, or re ceived in any other manner, shall be paid, distributed, transferred or assigned to any member of the Board of Trustees or to any other individual for said member’s or individual’s private gain, otherwise than in the satis faction of a bona fide indebtedness, and that, upon dis solution or expiration of the corporation, voluntary or Affidavit of Mose Kiser in Support of Motion to Dismiss 62a involuntary, the assets or the proceeds from the sale thereof, or property received in exchange therefor, shall be given, assigned, and transferred to a bona fide char itable, non-profit or governmental agency, except where such termination or dissolution results from a liquida tion of the assets or property of the corporation to satisfy bona fide indebtedness. 6. The title of all property acquired by purchase, gift, devise, bequest, trade, lease, or in any manner whatsoever, shall be vested in Wesley Long Community Hospital, Inc., whether or not so designated in the deed or other instrument transferring said title. All convey ances or mortgages of real property, or interests there in, shall be duly authorized by a majority of the Board of Trustees and executed in the name of Wesley Long Community Hospital, Inc., by its president, or a vice president, and a secretary or an assistant secretary, who shall affix the corporate seal to such instrument and duly attest the execution thereof. 7. The business and properties of the corporation shall be managed and controlled by a Board of Trustees composed of Twelve members. The terms of office of one-third of the Trustees shall expire at each Annual Meeting of the Board of Trustees. Of the six Trustees in office on the date of the 1957 Annual Meeting, two shall be chosen and re-elected by said Trustees to serve for an original term of three years, two shall be chosen and re-elected by said Trustees to serve for an original term of two years, and two shall be chosen and re elected by said Trustees for an original term of one year. At the 1957 Annual Trustees Meeting six addi- Affidavit of Mose Kiser in Support of Motion to Dismiss 63a tional Trustees shall be elected by the then serving Board of Trustees. Two Trustees newly elected by the Board of Trustees shall be elected for an original term of one year; two Trustees newly elected by the Board of Trustees shall serve for an original term of two years; and two Trustees newly elected by the Board of Trustees shall serve for an original term of three years. All of the specified original terms shall begin as of the date of the March 1957 meeting of the Board of Trus tees. Upon the expiration of said original terms, and regularly thereafter, successor Trustees shall be elected to serve for regular terms of three years, but any Trus tee or any Trustees may be re-elected to any vacancy or vacancies. No member of the Board of Trustees may or shall be a physician or dentist practicing his pro fession in the hospital. 8. The Board of Trustees of the corporation shall have the exclusive power and control over all real and personal property of the corporation and shall have power to purchase or lease any real or personal prop erty, to build, construct, repair, rebuild and improve hos pital buildings and any other buildings used or useful in the operation of a community general hospital; to borrow any money that may be needed to carry out the objects for which this corporation is formed, to repair, added to and improve any real or personal property of the corpo ration ; to create obligations of the corporation for any such purpose and to sell, lease, mortgage or otherwise convey or encumber any of the real or personal property of the corporation, and to authorize such action to be taken in the name of and on behalf of the corporation; provided, however, that the Trustees shall not create Affidavit of Mose Kiser in Support of Motion to Dismiss 64a any debt of the corporation, whether or not secured by mortgage or deed of trust on all or any part of the corporation’s real or personal property and maturing more than twelve months after the date of such debt unless the proposal to create said debt shall be sub mitted to a meeting of the Board of Trustees and re corded in the minutes of such meeting and approved by not less than a majority of the Board of Trustees at a second meeting held after not less than ten days’ writ ten notice by mail to each Trustee, which notice shall contain a brief description of the proposed debt and the purpose thereof, but this requirement shall not apply to a debt incurred for the purchase of hospital equip ment under an installment payment contract not ex ceeding $10,000.00 in principal amount. The Board of Trustees shall have the exclusive powder and control over the institutional services and activities of the hos pital. 9. The Board of Trustees shall have the power to make, alter, amend, rescind or repeal By-Laws of the corporation and in such By-Laws prescribe the manner in which their successors are to be elected, to prescribe the manner by which, and the causes for which, the term of any Trustee may be terminated prior to normal expiration thereof; and, the Trustees shall elect the offi cers of the corporation and prescribe in the By-Laws the manner in which they shall be elected. 10. The period of existence of the corporation is unlimited. 11. None of the Trustees or officers of the corpora tion shall be personally liable or responsible for any of Affidavit of Mose Kiser in Support of Motion to Dismiss 65a its debts, defaults, or other obligations, and no Trustee shall receive any compensation whatever for or in con nection with his or her service as such or as an officer of the corporation and no part of the net income of the corporation shall inure to the benefit of any Trustee, officer of the corporation, or of any other individual. 12. The income of the corporation shall be used in sofar as it may be needed for such purposes, for the purchase, lease, repair or improvement of property; for the construction, repair, rebuilding and improve ment of hospital buildings and any other buildings used or useful in the operation of a community general hos pital; or for services, supplies, or other expenses inci dent to the operation of a general hospital or hospitals, and the balance shall be used under rules and regula tions prescribed from time to time by the Board of Trustees for charitable purposes, including the care and treatment of indigent patients, to carry on any educa tional or scientific research activities related to the care of the sick and injured, or the promotion of health, or to participate in or promote any activity designed or carried on to promote the general health of the com munity. 13. The names and post office addresses of the mem bers of the Board of Trustees of the corporation who are to serve as such from the date of this amendment of the Certificate of Incorporation until their successors are elected and qualified are as follows: Mose Kiser, Chairman Greensboro, N. C. H. L. Coble Greensboro, N. C. Stark Dillard Greensboro, N. C. Affidavit of Mose Kiser in Support of Motion to Dismiss 66a Affidavit of Mose Kiser in Slip-port of Motion to Dismiss Jno. E. Foster C. 0. Jeffress E. C. McLean Greensboro, N. C. Greensboro, N. C. Greensboro, N. C. In Witness Whereof, we, the undersigned, have here unto set our hands and seals, this the 25 day of April, State of North Carolina Guilford County I, A. 0. Smith, a Notary Public in and for the County and State aforesaid, do hereby certify that Mose Kiser, H. L. Coble, Stark Dillard, Jno. R. Foster, C. 0. Jeff ress, E. C. McLean, the persons named in and whose names are subscribed to the foregoing certificate of in corporation of Wesley Long Community Hospital, Inc., personally appeared before me this day and acknowl edged the due execution of the same for the uses and purposes therein expressed. Witness my hand and notarial seal, this the 25 day of April, 1957. My commission expires: Aug. 1, 1958.” (3) There have been no amendments or changes in the Certificate of Incorporation since April, 1957. 1957. Mose Kiser (S eal) H. L. Coble (S eal) Stark S. Dillard (S eal) Jno. R. Foster (S eal) C. 0. Jeffress (S eal) E. C. McLean ( S e at ,) A. 0. Smith (N otarial Seal) Notary Public 67 a Affidavit of Mose Kiser in Support of Motion to Dismiss (4) The Board of Trustees is presently composed of the following members: This the 30th day of March, 1962. Sworn to and subscribed before me this the 30th day of March, 1962. (S eal) / s / J oyce F. T rogdon Notary Public My Commission Expires: 6-5-63 W. C. Boren, III Mose Kiser E. C. McLean E. A. Morris Thornton H. Brooks Oscar W. Burnett ■ H. L. Coble Stark S. Dillard C. 0. Jeffress Thomas I. Storrs Stephen L. Upson Bland W. Worley Mose K iser Mose Kiser, Affiant 68a (Filed: May 4, 1962) Plaintiffs move the Court for a preliminary injunction enjoining defendants the Moses H, Cone Memorial Hospital, the Wesley Long Community Hospital, Harold Bettis, Di rector of the Moses H. Cone Memorial Hospital, and A. 0. Smith, Administrator of the Wesley Long Community Hos pital, their agents, servants, employees and attorneys and all persons in active concert and participation with them, pending the final hearing and determination of this action (1) from refusing to permit the plaintiffs G. C. Simkins, Jr., A. V. Blount, Jr., Walter J. Hughes, Norman N. Jones, Girardeau Alexander, Milton H. Barnes, W. L. T. Miller, E. C. Noel, III and F. E. Davis to practice on the medical and dental staffs of the Moses H. Cone Memorial Hospital and the Wesley Long Community Hospital, and from refus ing to admit the plaintiffs A. J. Taylor and Donald R. Lyons as patients at said hospitals; (2) from continuing to enforce the policy, practice, custom and usage of denying plaintiff physicians and dentists and others similarly situ ated admission to the medical staffs of the Moses H. Cone Memorial Hospital and the Wesley Long Community Hos pital on the basis of race, and continuing to enforce the policy, practice, custom and usage of denying admission of plaintiff patients and others similarly situated to said hospitals on the basis of race, or in any way conditioning or abridging the admission to, and use of, the facilities of the Moses H. Cone Memorial Hospital and the Wesley Long Community Hospital on the basis of race on the grounds that: 1. Unless restrained by this Court defendants will per form the acts referred to ; Plaintiffs’ Motion for Preliminary Injunction 69a 2. Such action by the defendants will result in irrepa rable injury, loss and damage to the plaintiffs, as more par ticularly appears in the duly sworn and notarized affidavits of George C. Simkins, Jr., A. Y. Blount, Jr., Walter J. Hughes, Norman N. Jones, Girardeau Alexander, Milton H. Barnes, W. L. T. Miller, E. C. Noel, III, F. E. Davis, A. J. Taylor, Donald R. Lyons and Barbara Wise attached hereto; and the following documentary evidence attached hereto: (A) Project application NC-86 certified as a true copy by the Department of Health, Education and Wel fare. (B) Project application NC-311 certified as a true copy by the Department of Health, Education and Wel- fare. (C) Project application NC-353 certified as a true copy by the Department of Health, Education and Wel fare. (D) Project application NC-358 certified as a true copy by the Department of Health, Education and Wel- fare. (E) Project application NC-330 certified as a true copy by the Department of Health, Education and Wel fare. (F) Rules and Regulations for hospital licensure in North Carolina, certified as a true copy by the North Carolina Medical Care Commission. (G) Sections of the North Carolina State Plan as promulgated by the North Carolina Medical Care Commission and certified as true copies by the North Carolina Medical Care Commission. Plaintiffs’ Motion for Preliminary Injunction 70a (H) Letter of transmission of license to the Moses H. Cone Memorial Hospital certified as a true copy by the North Carolina Medical Care Commission. (I) Letter of transmission of license to the Wesley Long Community Hospital certified as a true copy by the North Carolina Medical Care Commission. (J) Certificate of license for hospitals in North Caro lina certified as a true copy by the North Carolina Medical Care Commission. (K) Guilford County tax schedule certified as a true copy by the Assistant Tax Supervisor of Guilford County. (L) City of Greensboro tax rate certified as a true copy by the City Tax Collector. (M) Brochure entitled “A Program In Nursing Edu cation At The Woman’s College Of North Caro lina” published by the Woman’s College of North Carolina. (N) The Bulletin of the Woman’s College of the Uni versity of North Carolina, 1961-1962, published by the Woman’s College of North Carolina. (O) The Catalogue of the Agricultural and Technical College of North Carolina, 1961-1962, published by the Agricultural and Technical College of North Carolina. Plaintiffs’ Motion for Preliminary Injunction 71a 3. The issuance of a preliminary injunction herein will not cause undue inconvenience or loss to defendants but will prevent irreparable injury to plaintiffs. Respectfully submitted, Conrad 0 . P earson 203% East Chapel Hill Street Durham, North Carolina J ack Greenberg J ames M. Nabrit, III Michael Meltsner 10 Columbus Circle New York 19, New York Attorneys for Plaintiffs Plaintiffs’ Motion for Preliminary Injunction 72a Motion for Summary Judgment by Plaintiffs (Filed: May 4, 1962) Plaintiffs move this Court as follows: 1. that it enter, pursuant to Rule 56 of the Federal Rules of Civil Procedure, a Summary Judgment in plaintiffs’ favor for the relief demanded in the complaint on the ground that there is no genuine issue as to any material fact and that plaintiff is entitled to a judgment as a matter of law; or in the alternative pursuant to Rule 56(d) of the Federal Rules of Civil Procedure; 2. if Summary Judgment is not rendered in plaintiffs’ favor upon the whole case or for all the relief asked and a trial is necessary, that the Court, at the hearing on the motion, by examining the pleadings and the evidence before it and by interrogating counsel, ascertain what material facts are actually and in good faith controverted, and there upon make an order specifying the facts that appear with out substantial controversy and directing such further pro ceedings in the action as are just; 3. this motion is based upon: A. The duly sworn and notarized affidavits of (a) George C. Simkins, Jr. (b) A. V. Blount, Jr. (c) Walter J. Hughes (d) Norman N. Jones (e) Girardeau Alexander ( f ) Milton H. Barnes (g) W .L .T . Miller 73a (h) E. C. Noel, III (i) F. E. Davis (j) A. J. Taylor (k) Donald E. Lyons (l) Barbara Wise attached hereto. B. Documentary evidence previously filed in this case. C. Documentary evidence attached hereto: (a) Project application NC-86 certified as a true copy by the Department of Health, Education and Welfare (b) Project application NC-311 certified as a true copy by the Department of Health, Education and Welfare (c) Project application NC-353 certified as a true copy by the Department of Health, Education and Welfare (d) Project application NC-358 certified as a true copy by the Department of Health, Education and Welfare (e) Project application NC-330 certified as a true copy by the Department of Health, Education and Welfare (f) Rules and Regulations for hospital licensure in North Carolina, certified as a true copy by the North Carolina Medical Care Commission. (g) Sections of the North Carolina State Plan as promulgated by the North Carolina Medical Motion for Summary Judgment by Plaintiffs 74a Care Commission and certified as true copies by the North Carolina Medical Care Commis sion. (h) Letter of transmission of license to the Moses H. Cone Memorial Hospital certified as a true copy by the North Carolina Medical Care Com mission. (i) Letter of transmission of license to the Wesley Long Community Hospital certified as a true copy by the North Carolina Medical Care Com mission. (j) Certificate of license for hospitals in North Carolina certified as a true copy by the North Carolina Medical Care Commission. (k) Guilford County tax schedule certified as a true copy by the Assistant Tax Supervisor of Guilford County. (l) City of Greensboro tax rate certified as a true copy by the City Tax Collector. (m) Brochure entitled “A Program In Nursing Education At The Woman’s College Of North Carolina” published by the Woman’s College of North Carolina. (n) The Bulletin of the Woman’s College of the University of. North Carolina, 1961-1962, pub lished by the Woman’s College of North Caro lina. (o) The Catalogue of the Agricultural and Tech nical College of North Carolina, 1961-1962, published by the Agricultural and Technical College of North Carolina. Motion for Summary Judgment by Plaintiffs 75a D. All pleadings and papers filed in this case. E. Matters which the Court may properly take ju dicial notice. F. Admissions of defendants. W herefore, for the foregoing reasons plaintiffs pray that ■the Motion for Summary Judgment be granted. Respectfully submitted, Conrad 0 . P earson 203% East Chapel Hill Street Durham, North Carolina Jack Greenberg J ames M. Nabrit, III M ichael Meltsner 10 Columbus Circle New York 19, New York Attorneys for Plaintiffs Motion for Summary Judgment by Plaintiffs 76a (Filed: May 4, 1962) George C. Simkins, Jr., being first duly sworn, deposes and says: that he is a Negro citizen of the United States and the State of North Carolina, and a resident of the City of Greensboro, North Carolina; that he is a graduate of the Meharry Medical College holding the degree of D.D.S. and interned for one year at the Jersey City Medical Center, Jersey City, New Jersey, and has had five years of experience with the Guilford County Health Department; that he is a dentist licensed to practice in the State of North Carolina, and that he practices as a dentist in Greens boro, North Carolina, and has so practiced for the past twelve years; that on or about March 8, 1960, he wrote to Benjamin Cone, Chairman of the Board of Trustees of the Moses H. Cone Hospital, calling his attention to the hospital policy of not admitting Negro physicians and dentists to practice their profession on the staff of the hospital. His letter pointed out that as a result of this restrictive policy, a Negro patient in need of facilities available at the hospital must discharge the qualified Negro doctor or dentist of his choice in order to secure medical services at the hospital, thereby placing both Negro doctor and patient at a disad vantage not imposed upon white doctors and patients. Said letter requested an “ early and favorable considera tion” be given to the problem of staff restriction on the basis of race and color at the Moses H. Cone Hospital; Affidavit of Dr. George C. Simkins, Jr. in Opposition to Motion to Dismiss 77a that on or about April 7, 1960, he wrote Harold Bettis, Director of the Moses H. Cone Hospital, requesting appli cation blanks for admission to the staff of the hospital; that he completed said blank in the required form and promptly returned it to the hospital; ■ ■ that on or about May 4, 1960, the Board of Trustees of the Cone Hospital declined to accept the application; that on the stationery of the Moses H. Cone Hospital, over the signature of Harold Bettis, Director of the Moses H. Cone Hospital, dated May 5, 1960, he received the fol lowing letter: “Please be advised that your request for appoint ment to the Medical and Dental staff of this Hospital was considered by the Board of Trustees at its meet ing on May 4, 1960. “The Trustees have instructed me to inform you of this decision to continue the Hospital’s present policies applicable to staff appointments and admission of pa tients” ; that rejection of the application was due to the hospital’s practice of discriminating as to staff admission on the basis of race; that on or about March 8, 1960, he wrote Mose Kiser, Chairman of the Board of Trustees of the Wesley Long Community Hospital, calling his attention to the policy of the hospital of refusing admission to Negro physicians and dentists on the staff of the Wesley Long Hospital; that on April 7, 1960, he wrote A. O. Smith, Administrator of the Wesley Long Community Hospital, requesting application blanks for admission to the staff of the Wesley Long Hos pital ; Affidavit of Dr. George C. Simkins, Jr., in Opposition to Motion to Dismiss 78a that by letter under date of April 26, 1960, Smith ac knowledged receipt of the request for application blanks and advised that “due consideration” would be given to the request prior to the time of the opening of the new Wesley Long Hospital; that the new Wesley Long Hospital is open and occupied and the request has not yet been honered; and that it has not been honored because it is the practice of the Wesley Long Community Hospital to exclude Negro physicians and dentists from the medical staff of said hospital; that Donald R. Lyons, a Negro, and a resident of Greens boro, North Carolina, is a patient of affiant; that Donald R. Lyons suffers from an impacted lower third molar which should be removed at a hospital where dental facilities are available; that the Wesley Long Community Hospital and the Moses Cone Memorial Hospital are the only hospitals with dental facilities in the Greensboro area; that he has obtained from the Moses H. Cone Memorial Hospital the resolution, attached hereto as Exhibit A, of the Board of Trustees of the Moses H. Cone Memorial Hospital entitled “ Policy and Procedures for Admitting Negro Pa tients” and knows the attached to be a true copy of same; that a Negro patient admitted to the Moses H. Cone Me morial Hospital cannot be treated by a Negro doctor or dentist, but must discharge the qualified Negro doctor or dentist of his choice and obtain the services of a white doc tor or dentist; that because of the policy of the Moses H. Cone Memo rial Hospital and the Wesley Long Community Hospital Affidavit of Dr. George C. Simkins, Jr., in Opposition to Motion to Dismiss 79a Affidavit of Dr. George C. Simkins, Jr., in Opposition to Motion to Dismiss of refusing to grant staff privileges to Negro dentists, he suffers and will suffer continued financial loss, including loss of earnings and deprivation of the opportunity to de velop and maintain the skills necessary for continued pro ficiency in the dental profession. George C. Simkins, Jr. Sworn to before me this .............. day o f .....................................> 1962. Notary Public 80a EXHIBIT A ANNEXED TO AFFIDAVIT OF DR. GEORGE C. SIMKINS, JR. Policy and Procedures for Admitting Negro Patients Adopted by the Board of Trustees 12/11/52 The Moses H. Cone Memorial Hospital will admit as patients Negroes whose medical conditions require facil ities and services available at this Hospital and not also available in L. Richardson Memorial Hospital. To be con sidered for admission, a Negro must first have been ad mitted to and be a patient in L. Richardson Memorial Hos pital from which transfer will be made to this Hospital. To insure continuity of medical management, the patient will be admitted only to the service of the doctor on whose service he is a patient in L. Richardson Memorial Hospital. Request for transfer from L. Richardson Memorial Hos pital to this Hospital is to be made to the Admitting Office by the Negro patient’s physician. Only a physician who is a member of the Staffs of both hospitals may make such request. Approval to make such request must first be obtained from the Administrator of L. Richardson Memo rial Hospital. Except in extreme emergency, request may be made only after the history and physical examination of the patient have been completed and recorded and all necessary diagnostic procedures for which facilities are available at L. Richardson Memorial Hospital have been carried out. Amended as follows by the Board of Trustees, February 25,1960 In cases where in the judgment of the attending physician hospitalization is required primarily for studies or treat ment, facilities for which are not available at L. Richard son Hospital, direct admission to Moses Cone Hospital may be arranged with the prior approval of the Administrator of L. Richardson Hospital, provided final authority to ap prove such admissions rests with the Admitting Office of the Moses H. Cone Memorial Hospital. 81a Affidavit of Dr. E. C. Noel, III in Opposition to Motion to Dismiss (Filed May 4, 1962) State of North Carolina, C o u n t y o f G u il f o r d , s s . : ■ E. C. Noel, III, being first duly sworn, deposes and says: that he is a Negro citizen of the United States and the State of North Carolina, and a resident of the City of Greensboro, North Carolina; that he is a graduate of the Meharry Medical College, holding the degree of M.D.; that he interned for one year at the Lincoln Hospital, Durham, North Carolina, and completed one year’s residency in obstetrics and gynecology at the United States Air Force Hospital, Orlando, Florida ; that he practiced medicine in Albemarle, North Carolina, nine years and has practiced medicine in Greensboro, North Carolina, one year; that he is licensed to practice medicine in the State of North Carolina; that on or about April 7, 1960, he wrote Harold Bettis, Director of the Moses H. Cone Hospital, requesting ap plication blanks for admission to the staff of the hospital; that he completed said blank in the required form and properly returned it to the hospital; that on or about May 4, 1960, the Board of Trustees of the Cone Hospital denied the application; that on the stationery of the Moses H. Cone Hospital, over the signature of Harold Bettis, Director of the Moses H. Cone Memorial Hospital, dated May 5, 1960, he received the following letter: 82a “Please be advised that your request for appoint ment to the Medical and Dental staff of this Hospital was considered by the Board of Trustees at its meet ing on May 4, 1960. “ The Trustees have instructed me to inform you of this decision to continue the Hospital’s present policies applicable to staff appointments and admission of pa tients” ; that rejection of the application was due to the hospital’s practice of discriminating as to staff admission on the basis of race; that a Negro patient admitted to the Moses H. Cone Memorial Hospital cannot obtain treatment from the qualified Negro doctor of his choice, but must discharge his Negro doctor and obtain the services of a white doctor; that A. J. Taylor is a Negro and a resident of Greens boro, North Carolina; that A. J. Taylor is a patient of affiant and suffers from a confirmed gastric ulcer of thirty- five years duration which requires constant medical super vision, dietary restrictions, and the administration of anti cholinergic drugs; that because of this condition, A. J. Taylor should submit himself for periodic clinical evalua tion which should include detailed diagnostic X-ray studies, laboratory procedures and tests of such a nature as to re quire the most advanced diagnostic facilities available; that the best facilities for such examination and treatment available in the Greensboro area are located at the Moses H. Cone Memorial Hospital and the Wesley Long Com munity Hospital; that A. J. Taylor desires such treatment and examination and desires that affiant, who is his family physician, should administer such treatment and examina tion; Affidavit of Dr. E. C. Noel, III in Opposition to Motion to Dismiss 83a that A. J. Taylor cannot obtain such treatment and examination at the Wesley Long Community Hospital be cause the Wesley Long Hospital excludes Negroes and only accepts as patients white persons and that the Wesley Long Hospital does not admit Negro physicians and den tists to staff privileges; that because of the policy of the Moses H. Cone Memorial Hospital and the Wesley Long Community Hospital of refusing to grant staff privileges to Negro physicians, he suffers and will suffer continued financial loss, including loss of earnings and deprivation of the opportunity to de velop and maintain the skills necessary for continued pro ficiency in the medical profession; that Negro patients cannot enter the Moses H. Cone Memorial Hospital on the same terms as white persons and, if admitted, cannot be treated by their own physicians and dentists, but must retain a white physician or dentist. Affidavit of Dr. E. C. Noel, III in Opposition to Motion to Dismiss E. C. Noel, III Sworn to before me th is.......day o f ....................... , 1962. Notary Public 84a Affidavit of Dr. A. V. Blount, Jr. in Opposition to Motion to Dismiss (Filed May 4, 1962) State of North Carolina, County of Guilford, s s . : A. V. Blount, being first duly sworn, deposes and says: that he is a Negro and a citizen of the United States and the State of North Carolina and has resided in the City of Greensboro for nine years; that he is a graduate of Howard University, holding the degree of M.D.; that he interned for one year at the Kate Biting Hospital in Winston Salem, North Carolina, and did three years residency work at the Kate Biting Hospital, Winston Salem, North Carolina; that he has spent thirty- four months in the United States Army practicing general surgery; that he is a member of the American Association of Abdominal Surgeons; that he has been licensed to prac tice medicine in the State of North Carolina and that he has practiced medicine in Greensboro, North Carolina for nine years; that on or about April 7, 1960, he wrote Harold Bettis, Director of the Moses H. Cone Hospital, requesting ap plication blanks for admission to the staff of the hosjjital; that he completed said blank in the required form and promptly returned it to the hospital; that on or about May 4, 1960, the Board of Trustees of the Cone Hospital declined to accept the application; that on the stationery of the Moses H. Cone Memorial Hospital, over the signature of Harold Bettis, Director of the Moses H. Cone Memorial Hospital, dated May 5, 1960, he received the following letter: 85a “ Please be advised that your request for appoint ment to the Medical and Dental staff of this Hospital was considered by the Board of Trustees at its meet ing on May 4, 1960. “The Trustees have instructed me to inform you of this decision to continue the Hospital’s present policies applicable to staff appointments and admission of pa tients” ; that rejection of the application was due to the hospital’s practice of discriminating as to staff admission on the basis of race; that a Negro patient admitted to the Moses H. Cone Memorial Hospital cannot obtain treatment from the qualified Negro doctor of his choice, but must discharge his Negro doctor and obtain the services of a white doctor; that on April 7, 1960, he wrote A. 0. Smith, Administra tor of the Wesley Long Community Hospital, requesting application blanks for admission to the staff of the Wesley Long Hospital; that by letter under date of April 26, 1960, Smith ac knowledged receipt of the request for application blanks and advised that “ due consideration” would be given to the request prior to the time of the opening of the new Wesley Long Hospital; that the new Wesley Long Hospital is open and occupied and the request has not yet been honored; and that it has not been honored because it is the practice of the Wesley Long Community Hospital to exclude Negro physicians and dentists from the medical staff of said hospital; that because of the policy of the Moses H. Cone Memorial Hospital and the Wesley Long Community Hospital of Affidavit of Dr. A. V. Blount, Jr. in Opposition to Motion to Dismiss 86a Affidavit of Dr. A. V. Blount, Jr. in Opposition to Motion to Dismiss refusing to grant staff privileges to Negro doctors, he suffers and will suffer continued financial loss, including loss of earnings and deprivation of the opportunity to de velop and maintain the skills necessary for continued pro ficiency in the medical profession. A. y . Blount, Jr. Sworn to before me this....... day o f ......................, 1962. Notary Public 87a Affidavit of A. J. Taylor in Opposition to Motion to Dismiss (Filed May 4, 1962) State oe North Carolina, County of Guilford, s s . : ■ A. J. Taylor, being first duly sworn, deposes and says: that lie is a Negro and a citizen of the United States and the State of North Carolina and has resided in Greensboro, North Carolina, for the last thirty-one years; that he suffers from a confirmed gastric ulcer which he has had for thirty-five years and he is informed by his family physician, Dr. E. C. Noel, III, that his ulcer re quires constant medical supervision, dietary restrictions and anticholinergic drugs; that he has been advised to have periodic clinical evaluations and visits of such a nature as to involve advanced diagnostic facilities; that he is informed that the best facilities available for such treatment in the Greensboro area are located at the Moses H. Cone Memorial Hospital and the Wesley Long- Community Hospital; that he desires treatment in one of these hospitals and desires to be treated by his family physician, Dr. E. C. Noel, III; that affiant cannot enter the Wesley Long Community Hospital because the Wesley Long Community Hospital does not admit Negroes as patients; that affiant cannot enter the Moses H. Cone Memorial Hospital on the same terms and conditions as white persons because the Moses H. Cone Memorial Hospital does not admit Negro patients on the same terms and conditions as white patients, but only admits a limited number of Negroes; that he cannot 88a Affidavit of A. J. Taylor in Opposition to Motion to Dismiss be treated by Dr. E. C. Noel, III, at either of these hospitals because said hospitals do not grant staff privileges to Negro doctors. A. J. Taylor Sworn to before me this.......day o f ............ ........1962. Notary Public 89a (Filed May 4, 1962) State of North Carolina, County of Guilford, s s . : ■. Donald R. Lyons, being first duly sworn, deposes and says: that he is a Negro and a citizen of the United States and the State of North Carolina, and has resided in Greens boro, North Carolina, for the last nine months; that he suffers from an impacted lower third molar and desires it removed at the hospital with the best dental facilities in Greensboro, North Carolina; that he is in formed that the Wesley Long Community Hospital and the Moses H. Cone Memorial Hospital are the only hos pitals in the Greensboro area with dental facilities; that he desires to have this impacted lower third molar removed by his dentist, Dr. George C. Simkins, Jr., in either the Moses H. Cone Memorial Hospital or the Wesley Long Community Hospital; that he cannot gain admission to the Wesley Long Com munity Hospital because the Wesley Long Community Hos pital excludes Negroes as patients; that he cannot gain admission to the Moses H. Cone Memorial Hospital on the same terms and conditions as white persons because the Moses H. Cone Memorial Hospital does not admit Negroes on the same basis as whites, but only admits a limited number of Negroes as patients; that he cannot be treated by Dr. George C. Simkins, Jr., at either of these Affidavit of Donald R. Lyons in Opposition to Motion to Dismiss 90a Affidavit of Donald B. Lyons in Opposition to Motion to Dismiss hospitals because said hospitals do not grant staff privi leges to Negro doctors. Donald R. Lyons Sworn to before me this..... day o f ......................, 1962. Notary Public 91a (Filed May 4, 1962) Affidavit of Barbara Wise in Opposition to Motion to Dismiss State of North Carolina, County of Guilford, s s . : ■ ■ Barbara Wise, being first duly sworn, deposes and says: that I am a senior nursing student at the Agricultural and Technical College of North Carolina and receive stu dent and nurse training at the Moses H. Cone Memorial Hospital in Greensboro, North Carolina; that my typical training day at the Moses H. Cone Memo rial Hospital is as follows: 7 :00 A.M.—Hearing Nurse’s Report—Entire nursing team, including head nurse, practical nurses, aides, clinical instructor and student nurses, meets to learn of patients’ conditions and care to be given. I am also assigned patients for the day; 7 :15 A.M.—I take my patients temperature, pulse and respiration and give the necessary medications which have been ordered; 7 :30 A.M.—I prepare my patients for breakfast. Usually I have three patients. This preparation includes making the bed and giving personal care to the patients. Personal care includes giving bed baths; 8 :00 A.M.—At this time I usually chart any information about the patient’s condition on the patient’s record; 8 :30 A.M.—Until about 10:30 A.M. I may assist the doc tor with any treatments which he may give or administer any treatments which he has prescribed for the patients on the wards; 92a 10:30 A.M.—Until 11:30 A.M. I read my patients charts for any additional orders for treatment. I also use this time to review my text and compare the patients condition; 11:30 A.M.-11:45 A.M.-—We report the treatments we have given to our team leader; that I train along with other student nurses from the Agricultural and Technical College of North Carolina in the Moses H. Cone Memorial Hospital Tuesday, Wednes day and Thursday of every week from 7 :00 A.M. to 12:00 noon and on Fridays from 7 :00 A.M. to 3 :00 P.M.; that about twenty student nurses work in the Hospital at the same time; that I do not receive a salary for this work; that part of our training is in operating room techniques; that we are given an opportunity to work in the operating room in order to assist graduate nurses and the surgeons; that we may act as scrub nurse or circulating nurse dur ing the operation; that while working at the Cone Hospital I am assigned various patients on the basis of the illnesses that I am studying in class; that while treating these patients I must report to my team leader everything I do for these patients. Affidavit of Barbara Wise in Opposition to Motion to Dismiss Barbara Wise Sworn to before me this___ day o f .........................., 1962. Notary Public v v--i . 6 - , \ DEPARTMENT OF HEAL EDUCATION, AND WELFARE P U B L I C H E A L T H S E R V I C E Form'A pproved Budget Bureau No. 68-R309.4 'PROJECT CONSTRUCTION APPUCATI Oil -■ PART I P R O JE C T NUMBER ( A s s i g n e d b y S t a t e A g e n c y ) iCC-311 ■ The apf,: icant, pursuant to T i t l e VI of the public health Service Act, as amended, hereby applies from the construction allotment made to the State by the Surgeon General for construction of, or with, the f a c i l i ty described below. for Federal funds r i n connect ion . 2 . LEGAL NAME OF A P P L IC A N T V.’ecley Lons Cccaunity Hrrv.ital 3 . AD DR E S r C C f f y ^ o u n t y and Stat&J" Greensboro5 Guilford, north Carol: A. TYPE OF OWNERSHIP (C h eck o n e ) !__i PUBLICLY OWNED NON-PROFIT ("See i n s t r u c t i o n * as t o s u b m i t t in g p r o o f . ) \ S 0 ' 3 £VouFlCilCCl E l i l l i b i t ) s. DESCRIPTION OF FACILITY A, NAME AND LOCATION^' FACILITY Wesloy Lons ^oasnmity Iloaoit Gr : - r o , l l o r t i h ' C a r o l i n a 5. TYPE OF FACILITY ( Check e a ch ty p e o f p r o j e c , t p r o p o s e d ) IX I GENERAL HOSPITAL I |TUBERCULOSIS — HOSPITAL C j MENTAL HOSPITAL i__| PUBLIC HEALTH CENTER □ RELATED FACILITY i |NURSING HOME |~j DIAGNOSTIC OR DIAGNOSTIC — AND TREATMENT CENTER ' □ CHRONIC DISEASE HOSPITAL C j REHABILITATION FAC ILI TY 23 ©nt ?S~bed ractura to ba— repl. TY ( P a t i e n t beds o n l y ) Existing beds GENERAL TUBERCULOSIS MENTAL CHRONIC n u r s i n g home ' ■ Suitable . Unsui table 7 b provided by construction New faci1i ty 1 5 0 Add i t ion Alteration Total suitable after construction 1 5 0 Total unsuitable afterconstruct ion ~ ~ 7 3 ~ DESCRIPTION OF THE FACILITY - Attach S e s E x h i b i t " A " ' sheet, using outl ine shown in instruct ic ns 6■ HLa— LLlWcer ta i n persons ( C r o s s o u t o rw ) in the area w i l l fee denied admission to the proposed f a c i l i t i e s because of race, creed or co lor . as patients 7 . HAS A P P L IC A N T ACQUIRED TH E S I T E ? YES □ NO 8 , PRELIM I MAR VEST I HATES OF COHSTRUCTSOfi COSTS ( Bo m r f i l l in i f P e r t 4 i s s u b m i t t e d h e r e w i t h . ) ' ~ ' I ^ f ^ ° s ts . f sj ! ? a! ? ^ ? ^ J te,T,i zed.b?low should be the total costs of the construction for'which this appl ication is sub- mitted. |f the application requests funds for the construction of two; or more of the five types of projects fas 1 thBl r^^®nG,ft®ra1QknSJ ru<i S !0l1f^ L°a which.Federa! funds are allotted, the costs of each project must be itemized o the Continuation Sheet and attached to this application, u i st- on A. ESTIMATED COSTS IN WHICH THE FEDERAL GOVERNMENT MAY PARTICIPATE ' ESTIMATED COSTS i l l Construction contracts $ 1 * 8 5 5 , 5 6 8 . 8 1 ( 2) Group i equipment not i n construct ion contracts i l l Groups || and m Equipment 2 0 7 * 0 0 0 , 0 0 S u l Site survey and soil investigation i n Architect’ s fees (6 ) Supervision and inspection at the site (7) Acquisition of site ( E n t e r c o s t h e r e i f f o r P u b l i c H e a l t h C e n t e r s i t e ) (8 ) o t h e r ( S p e c i f y ) .... C o n t i n g e n c y ( i n c l u d i n g a l l a n p r o v a b l e i t e m s n o t 6 2 . 4 7 7 . 0 7 . . - __ U l s t e d above; J ___________ (9) — — —— ..... ............................................... ....... SUB-TOTAI s 2 * 2 5 0 * 0 0 0 * 0 0 ( 10) Total cost in which the Federal government is requested to participate B. ESTIMATED ( 1) COSTS IN WHICH THE FEDERAL GOVERNMENT HAY NOT PARTICIPATE Acqu1 sit ion of site ■ $ ~ o - ( 2) 01 h6 f ( S p e d f y ) (3) ------:------— .------------- _ ■ SUB-TOTAI $ - 0 - C. ESTIMATED COST OF CONSTRUCTION [item A ( 9 ) p l u s I t e m B ( 3 ) J TOTAL s 2 , 2 5 0 , 0 0 0 . 0 0 93a Project Construction Application— Part 1 94a Project Construction Application—Part 1 (See opposite) 9■ NON-FEDERAL CONSTRUCTION FUNDS AVAILABLE TO APPLICANT ( D o NOT f i l l i n i f p a r t 2 i s s u b m i t t e d h e r e w i t h . ) A. ,NDS NOW AVAILABLE IN CASH OR OTHER LIQUID ASSETS ( p a r t 2 s u b m i t t e d h e r e w i t h ) C. STATE AID ( D o NOT f i l l i n i f S t a t e i s a p p l i c a n t . ) D. TOTAL' A ( S ) p l u s B ( 6 ) p l u s CJ AMOUNT ( 1) Cash . $ ( 2 ) Appropriat ion > (3) Negotiable and non-negot i able securities (4) Other ( S p e c i f y ) _________ -• ____ ____ _ ‘ y ‘ \ O , i * 3 • 1 . . . . (5) SUB-TOTAL $ SE AND ESTIMATED AMOUNT OF ADDITIONAL NON-FEDEflAL FUNDS .. \ .\ \ (1 ) T ax levy - A - ~ ' $ (2 ) pledges (?) Mortgage (4) Bonds 151 Other ( S p e c i f y ) 1 °L SUB-TOTAL $ TOTAL 10. PRELIMINARY F* S HANG tAL ANALYSIS (& o NOT f i l l i n i f p a r t 4 i s s u b m i t t e d h e r e w i t h . ) A. FEDERAL SHARE OF ESTIMATED COSTS ( F r o m i t e m 1 4G )___________________________________________ B. STATE AiD TO BE FURNISHED ( I f &ny) ( I t p m 9 - C a b o v e ) C. APPLICANT*^ SHArF~oF c OST | / t « « S ^ cT m in u s ( I t e m 1 0 - A p l u s I t e m T o - f l ) | D. TOTAL ESTIMATED FUNDS REQUIRED • TOTAL l..2*50o*o;,CL,,eO' ŜOvQOOwOO- I ! . HAIHTENAHCE AND OPERATION A. ESTIMATED COST OF OPERATING AND MAINTAINING THE TOTAL FACILITY 1 S T YEAR OF O P E R A TIO N 2n d y e a r o f O P E R A T IO N s i 1k'7o „ ? o h . y ? $ 1 . 7? ^ . n 4Q . n o B. ESTIMATED INCOME $ 1 t 7Q < % 8 6 7 . ^ 6 C. ESTIMATED DEFICIT. IF ANY $ _ - 6 - $ " Q - D. STATE THE METHOD OF RAISING FUNDS TO MEET ANY OPERATING DEFl'ciT SHOWN ABOVE. GIVE SOURCE OF FUNDS. ( A t t a c h a d d i t i o n a l s h e e t s i f n e c e s s a r y * ) PH S - 6 2 -1 REV . 6 - 5 5 • 2 -. 95a 5 96a Project Construction Application—Part 1 (See opposite) EiF” * , - ^ 1 THE -LICANT HEREBY AGREES THAT 'INTENDS TO PROCEED WITH i,HE PROJECT AND WILL FURNISH. A. Satisfactory evidence of financial resources to con struct, operate and maintain the fa c i l i ty . B. A survey and description of the site. C. plans and specifications in accordance with the regula- t i oris. D. l i s t s of Group I equipment not in the construction contract or contracts and Groups j l and i l l equipment. 2-3- THE APPLICANT HEREBY GIVES ASSURANCE TO THE STATE AGE ICY: A. ThaJ actual construction work wil l be performed by the j lump sum (fixed price) contr z\ at hod, 'that adequate i methods of obtaining competitive bidding wi l l be or I have been employed prior to awarding the construction contract, either by pub 1 ic advertising or circular iz ing three or more bidders, and that the award of the con tract wil l be or has been made to the responsible bid der submitting the lowest acceptable bid; 8 . That section 2, labor Standards (Form PHS-144 as re vised) wi l l be included in al l construction contracts in excess of $2 , 000 ; that construction contracts in excess of $2,000 w i l l prescribe the minimum rates of pay for laborers and mechanics engaged in the con struction of the project as determined by the Secre tary of- labor in accordance with the Davis-Bacon Act, 4 9 Stat. 1011, as ammended, and the regulations issued pursuant. thereto by the Secretary of labor; C. That all construct ion contracts regard 1 ess- of amount wi l l include paragraph 8 , section 2, tabor Standards (form PHS-144 as revised) relating to kickbacks; D. That the project wil l not be advertised or placed on the market forbidding until the final working drawings and specifications have been approved by the Surgeon General and the applicant has been so notified; E. That ho con/ get ion contract or contracts for the project or a ^art thereof, the cost of which is in excess of the estimated cost approved in the applica tion for that portion of the work covered by the plans, w il l be entered into without the prior approval of the Surgeon General; F. That the construction contract wi l l require the'Con- tractor to furnish performance and payment bonds, the amount of which shall each be in an amount not less than f i f t y percentum (50%) of /he contract price, and to maintain during .the l i f e of the contract adequate f i r s , workmen'seompensation, public 1 l a b i l i t y and property damage insurance; G. That any change or changes in the contract which (a) , makes any major alteration in the work required by the plans and specifications, or (b) raises the total con tract price over the approved estimate of cost of the work covered by the plans and specifications w i l l be submitted to the Surgeon General for prior approval; H. That the construction contract wi l l provide that the Surgeon General, the State Agency and the i r repre sentatives wi l l have access at al l times to the work wherever it is in preparation or progress and that the co n tra c to r - w i l l provide proper f a c i l i t i e s for such access and inspection; i. That the applicant wil l provide and maintain competent and adequate architectural or engineering supervision and inspection at the project to insure-that the com pleted work conforms with the approved plans and spec i f icat ions; J - That, when the project is completed, it wi l l be operat ed and maintained in accordance with minimum standards prescribed by the State Agency for the maintenance and operation of such fa c i l i t ies ; K. That the f a c i l i t y wil l provide a reasonable volume of free patient care. (See instructions.) l p p 2>0¥SSl? ’ j", fi ?,>j < " } *7' v o Frank Raider, M.D., D.P.H. Hospital Program Director KEv"a 'rHS, Region III ' // ' / a a S T A T U R E $>F RES PONSIB LE O F F IC E R LEGAL NAME OF A P P L IC A N T we-sley Long Csrrjunity Hospit?1 Inc, NAME OF R ESPO NSIB LE O F F I C E R (T y p e o r p r i n t ) Kose Kiser T I T L E OF O FFICER Chairman^ Board of Trustees PH S * 6 2- ! REV. 6 - 5 5 - 3 - 97a t Project Construction Application—Part 1 (See opposite) BSP NOTE TO APPLICANT - DO HOT FILL . I N ;THIS PAGE 14. THE STATE AGENCY CERTIFIES THAT: - ^5 A. This application is in conformity with the regulations and the approved State Rlarw' Voluntary N o n p r o f i t | nstitut.ion- B. The application is for a (Check one) j__j publ icly-owned institution C. ( C h e c k o n e ) • ... ■ ̂ T ■ The applicant's project is included in the highest pr io r i t y group and is or wil l be included in the project *—J ■ Construction Schedule. b j The applicant's project is included in the project Construction Schedule submitted to the public Health Service. Q* ( C h e c k o n e ) t__, The applicant has given adequate assurance that the f a c i l i t y wi l l be operated without discrimination I— i because of race, creed or color. The requirement of non-discrimination has been met because this is an area where separate f a c i l i t i e s are £— I provided for separate population groups and the State plan otherwise makes equitable provision, on the basis of need, for f a c i l i t ie s and services of l ike quality for each such population group in the area. E. ( C h e c k & o n e ) The applicant has given assurance that a reasonable volume of free patient care will proposed fac i l i ty . be provided in the The applicant has demonstrated to the satisfaction of the State Agency that a reasonable vol ume of free □ patient care is f inancial ly infeasible, and in support thereof the State Agency submits the attached data. F. The applicant’ s representative whose signature appears above has been duly authorized to make the commitments contained in this application as is evidenced by the certi fied copy of authorization made by the appl icant 's governing body and which is contained in the f i les of the State Agency. G. The Federal share for this project ( i t e m t o A ) , is to be charged to the allotment to the State for fiscal years as fol 1 ows: FISCAL YEAR AMOUhT PART C H O S P I T A L S AND P U B L IC H EA LTH C EN TER S PART G CHRONIC D IS E A S E H O S P ITA L D I A G N O S T I C OR D I A G N O S T I C AND TREA TMEN T CENTER NU RSIN G HOME R E H A B !L I T A T ? O N F A C I L I T Y 1 9 5 9 1 , 5 0 0 . 0 0 0 H. |n accordance with the approved State plan, the Federal share for this project is; PART c. f £ 2 / g .. percent, PART G___________percent. DATE O F F I C I A L NAME OF S T A T E AGENCY a " - IJorth Carolina Kedical CL .re Cc LOB S IG N A T U R E O F R E S P O NS IB LE OFFICE/* - v - - 4-1 < T I T L E OF O F F I C E R Executive secrctary P H S - 6 2 - 1 REV . 6 - 5 5 -4 GPO • 0 3 6 4 2 3 99a 100a Project Construction Application—Part 1 (See opposite) US?" 62- - . 6-5. PROJECT CONSTRUCTION APPLICATION - FART 4 \RTMENT OF HEALTH. E. -AT I ON. AND WELFARE P UB t To H E A L T H S E R V I CE Form Approved Budget Bureau No. 68-R309.6 PR O JE C T NO. ( A s s i g n e d b y S t eat<s A g e n c y )f'S't ** 2. LEGAL NAM£ OF A P P L IC A N T ■ * -vv- ADDRESS ( C i t y , C ou n ty end S t a t e ) V* « <■■ • ‘ i '• ».?4 v $ i - ̂ w i w f 4 . PUNS AND SPECIFICATIONS Four sets of final drawings and specifications upon which bids for construction were or are to be based, unless previously Submitted, must be forwarded with this part 4 ( S ee i n s t r u c t i o n s r e g a r d in g i d e n t i f i c a t i o n ) 5. DESCRIPTION OF FACILITY A. NAME AND LOCATION OF FACILITY tX Li; Coarounity -»t, :nr..-".c :>o< *th Carolina B. TYPE OF FACILITY (Check each type o f p r o j e c t propose d) y*\ GENERAL HOSPITAL □ TUBERCULOSIS HOSPITAL j MENTAL HOSPITAL I I NURSINS HOME f j DIAGNOSTIC OR DIAGNOSTIC AND TREATMENT CENTER [~~j CHRONIC DISEASE HOSPITAL |~J REHAB II I T A T I ON F A C I L I T Y |__| PUBLIC HEALTH CENTER |~~| RELATED FACILITY C. BED CAPACITY ( P a t i e n t b e d s o n l y ) GENERAL TUBERCULOSIS MENTAL CHRON1C NURSING HOME Exist ing beds Suitable Unsu i table <ru provided by construction New fac i 1i ty Add it ion A He rat ion , Total suitable after construction T!23 Total unsuitable after construct ion | 0. DESCRIBE ANY MAJOR CHANGES IN PROJECT SINCE PART I Clatb riocr C53 beds) a<Mo£} 3 Lc£s» addecl 6. SUMMARY OF ESTIMATE OF CONSTRUCTION COSTS The costs estimated and itemized below should be the total costs of the construction for which this application is sub mitted. |f the application requests funds for the construction of two or more of the five types of projects (as listed in the General instruct ions) for which Federal funds are al lotted, the costs of each project -must be itemized on the Continuation Sheet and attached to this application. A. ESTIMATED COSTS IN WHICH THE FEDERAL GOVERNMENT MAY PARTICIPATE (Attach d e t a i l e d e s t i m a t e s f o r e a c h o f t h e f o i l o w i n g i t e m s ) ( i ) Construction contracts art) •c'dnri'ngehc'y ________________ $ CO (2 ) Group 1 equipment not i,n construction contracts (3 ) Group ll and ||| Equipment t;eo Ciatosc Inaido (4 ) Site survey and soil i nvest i gat i on (S') Archi tect 's fees 157tfr30*5»- (6) Supervision and inspection at the site (7) Acquisition Of site ( E n t e r c o s t h e r e i f f o r P u b l i c C e n t e r s i t e ) (8 } Other ( S p e c i f y ) ~ifTcT̂ r •*- (9) SUB-TOTAL (10) Total cost in which the Federal government is requested to participate B. ESTIMATED COSTS IN WHICH FEDERAL GOVERNMENT MAY NOT PARTICIPATE ( l ) Acquisition of s i t e ,-. (2 ) Other ( S p e c i f y ) rrerrcrr w SUB-TOTAL C. TOTAL ESTIMATED COST OF CONSTRUCTION [ i t e a A ( 9 ) p l u s B(3 TOTAL ■-»> - ■ ,p rf- FJ J 7. FINANCIAL AHA LYSIS A. Federal share of estimated costs CCS Z/Z1 is f 3^23*725} .1,617,150.00 8. State aid to be furnished ( i f a n y ) C. Applicant's share of costs | I tem 6C minus ( TA p l u s i s L D. Total estimated funds required T OTA L ~- 7 f ' * ¥ m kT V ~ •4* 101a 102a Project Construction Application—Part 1 (See opposite) USr' The fo l l o w in g is* t o b e f i l l e d in b y th e STATE AGENCY o n l y aKKUM. Au . ftCHT-The Federal stare for this Project (Item 7A), is to be charged to the allotment to the State for fiscal years as follows: AMOUffT FISCAL YEAR PART C HOSPITALS i yd PUBLIC HEALTH CckTERS PART G CHRONIC DISEASE HOSPI'TAL DIAGNOSTIC OR DIAGNOSTIC AND TREATMENT CENTER NUR SING HOME *. |n accordance * it h the approved State plan, the Federal share f or th ie p ro ject ia : REHABILITATION F A C I L I T Y PART C PERCENT. PART G PERCENT. HEMraAffOUH OF AGREEMENT made by and between A. The Surgeon General, public Heal th Serv ice , » n o tic 'd Core Cir^laci&nB. the_L: II COKS1DERATI OH OF TfC FOREGO I KG, the p art ies hereto mu tu a l ly agree as f o i l o w s ; ( l ) THE APPLICANT agrees that it w i l l c o n s tr u c t the p ro je c t o r cause it to be constructed to f in a l completion in accordance with the a p p l i c a t i o n it has submitted and the plans and s p e c i f i c a t i o n s attached th ere to ,_ and w il l ( S t a t e Ag&ncy T i t l e ) (hereinafter.■- ca lled the State Agency), and v i n & l f ? tor*"* C o . ' -r : t : -r l ty l*o*yr&fcql,» I r . c »c . ( L e g e T J F ^ o f A p p l s c a n t ) Of Q T l f j ̂ ( ( A d d f KisVih Cm 'clisa ~oT~AppT2canf)~ ( h erein a fter ca lled the Applicant) , pursuant to T i t l e VI o f the public Health Service Act, as amended, (h erein a fter called the Federal Act) and r e g u la t io n s thereunder prescribed by_ the Surgeon General. THE STATE r'* : " ; __________ has submitted a State plan f o r c o n s t r u c t i o n o f p u b l i c and oth er non p r o f i t hospita ls and medical f a c i l i t i e s the l a t e s t , annual r e v i s i o n o f which was approved by the, Surgeon General under part C o f the Federal Act on ' “ V " ■■JIJsil'eJ] and under part G o f the Federal Act on ̂ ----------------------- TS£ APPUCAKI has submitted an appl i cat rorr for Federal aid in con s tru c t io n o f a p r o je c t under the State plan. This a p p l ic a t io n , cop ies or which are held by the State Agency and the Surqeon General, meets a l l the requirements o he comply s t r i c t l y with the assurances contained in the ap pl icat ion; that it w il l without delay obtain bids and en te r into a contract f o r construction o f the p r o je c t ; that the f a c i l i t y w il l th e r e a f te r be maintained and operated in accordance with the assurances g iven i n ■ t he a p p l i c a t i o n ; and that the funds f o r c o n s t r u c t i o n w il l be fu r nished as se t f o r th above p lus the f u l l amount o f any co s ts inwhich the Federal Government does not p a r t ic ip a te . (2) THE STATE AGENCY hereby approves the appl ica t ion and recommends it t o the Surgeon General f o r a p p ro v a l . The State Agency c e r t i f i e s that the ap p lica t ion meets a l l th e requirements o f the State Plan, that the p lans and s p e c i f i c a t i o n s are . in accordance with Appendix A t o t he regu lat ions promulgated by the Surgeon General under the Federal Act ; that the a p p l i c a t i o n c o n t a in s reason ab le assurances as to t i t l e , payment o f p r e v a i l in g r a te s o f wages, and f in an cia l support fo r the non-Federal_ share o f c o s t o f c o n s tr u c t io n and the e n t i r e c o s t o f mai ntenance and operat ion when completed; that the appl ica t ion _con- ta i ns an assurance that in the operation o f the f a c i l i t y there w il l beconformance to State standards fo r operation and maintenance and to al 1 ap p licab le State laws a ; d State a n d ' lo c a l cod es , r egu la t ion s and ord inances . The State Agency agrees that it w i l l p e r io d i c a l ly inspect, the pro - . ■>„ j « c t - ^ - c e r t i f y t o S u rgM j 0 . ™ r . l f o r ~ j j . n l « » Federal Government ŵrT T sums as are found t o be payable under the Federal Act.“ ir "H hCTudina equipment, in which the Federal Government‘■wri r w cart ic ioate under the Federal Act and the approved Federal share are as follows.:.. . . .. HOSPITAL OR PUBLIC _HEALTH_CENTER (PART C) % at C-S P/3 percent CHRONIC DISEASE HOSPITAL (PART G ) ' $ at .............. ... . percent NURSING HOME (PART G) $ _ at ........ percent DIAGNOSTIC OR DIAGNOSTIC TREATMENT CENTER JPART ________ $ = = = = = = = = at percent (3) THE SURGEON GENERAL hereby approves the appl icat ion (su b je c t , in th ecase o f a r e h a b il i ta t io n f a c i l i t y , to the approval o f THE SECRETARY OF HEALTH,EDUCATION,. AND WELFARE) and agrees to c e r t i f y t o the .Secretary o f the Treasury the Federal share o f the cost o f construction o f the pro je c t as se t fo r th above and further agrees to c e r t i f y to the Secretary o f the Treasury such sums as are c e r t i f i e d to him by the State Agency from tine to time as in s t a l l ments due under the Federal Act and regu lat ions thereunder unless c e r t i f i c a t i o n is withheld under Sec t ion 632(a ; o f the Federal A c t ; provided , however, the to ta l amount so c e r t i f i e d as instal Iments due shall not exceed the approv ed Federal share o f the actual necessary cost o f the pro je c t as determined at i t s f inal completion. REHABILITATION FACILITY _i£&EL£l, at . percent Q&» Litnteccat Jr IK u ITNESS WHEREOF, THE PARTIES HAVE HEREUNTO AFFIXED THEIR SIGNATURES OK THE OATES INDICATED. ( I t t h i . a p p l i c a t i o n i s a i j n a d b y two o r mors ap p l i c a n t s , th* a i n j u l a r s h a l l b e r e a d as t h e ^ l u r a j ^ h e ^ ----- ------ ------------—-----------------—--------------- -----— SI GNATUf!J-,OF R! LEGAL NAME OF APPLICANT ties ley hmg C cm io ity Jicof-iial* lae* NAME OF RESPONSIBLE OFFICER (Tfpm or P r i n t ) I’e a© risoi* T I T L E OF O F F I C E R O ffic ia l txm DATE NAME -OF STATE AGENCY ̂ * Is# C# Medical Care C ttrM clo o SIGNATURE OF RESPONSIBLE OFFICER ? _1 NAME OF RESPONSIBLE OFFICER (Type or p r i n t ) ’Sjfciiam F# Recfiereoa DATE March 13, 1962 FOR REBA81LITATIOK'FACILITIES OKLY F______jjXri----- ------------------ ' [̂ WT>iriiEC';rETWY T" FOR THE St$GEOH GENERA ̂ 1/ j g g a aA J ! 7 , » J TITLE OF OFFICER E&wtttlv© rccrstriry T I T L E OF O F F I C E REmil Ev Palmquist, M.B*, M.P.IL iBagia&alJ&sal^ T I T L E . OF O F F IC E R **£V. * - 3 5 •4* HEW-LEX h' 103a 104a (Filed: May 4, 1962) Letter From William F. Henderson [Letterhead of The North Carolina Medical Care Commission, Raleigh, North Carolina] April 15,1960 C O P Y Re: Project No. NC-330 Moses H. Cone Memorial Hospital Addition Greensboro, North Carolina Dr. Eugene A. Gillis Regional Medical Director Region III Department of Health, Education and Welfare 700 East Jefferson Street Charlottesville, Virginia Attention: Mrs. Helen S. Hoggard Acting Hospital Program Director Dear Dr. Gillis: Parts 1, 2 and 3 of the Project Construction Application for the subject project were submitted to the Public Health Service on the basis that no person in the area would be denied admission to the completed facility because of race, creed or color. Upon re-examination of the sponsor’s in tentions we find that in this respect the application was prepared and submitted in error. The Official Spokesman for the project has subsequently advised that it was not the hospital’s intention at all to accept patients on an unrestricted basis with reference to race and color. The misunderstanding apparently resulted from the Commission’s assumption, in assisting with the 105a preparation of the application, that no person would be denied admission because of race, inasmuch as the hospital has accepted some patients of the negro race during the past. However, it has been brought to our attention this policy is entirely voluntary on the part of the hospital and applies to selective cases referred by the L. Richardson Memorial Hospital, an all negro institution in the commu nity. Moreover, the Moses H. Cone Memorial Hospital is a non-governmentally owned and operated facility sup ported by private endowment. On being fully advised of the conditions imposed by the non-discrimination agreement, the hospital believes that its present selective admission policy which it may plan to continue would not in effect comply with the full intent of the agreement in the application as submitted. The spon sor, therefore, has requested that the application reflecting this condition be corrected. The Commission is satisfied that the applicant’s under standing is accurately represented and upon an examina tion of all of the records it is our opinion that the non discrimination agreement was erroneously executed as a result of a clerical inadvertence for which we are respon sible. Moreover, it is apparent that the application would have received the same consideration on the basis of the sponsor’s intention to restrict admissions as to race. This is supported by the State Plan for the Greensboro area which provides for separate facilities for separate popu lation groups and makes equitable provision for facilities of like quality for each such population group in the area. Several projects to improve the facilities of the L. Rich ardson Memorial Hospital at Greensboro (an all negro hospital) have been approved under the Commission’s pro gram. A current project is under development for the Letter From William F. Henderson 106a negro hospital and Federal funds for the project were approved at the same time the Commission approved the Moses Cone Hospital project. In consideration of the above the Commission has ap proved and is submitting herewith a corrected Part 1 of the Project Construction Application for the Moses H. Cone Memorial Hospital in accordance with the applicant’s desire to restrict admissions with regard to race at its own discretion. It is requested that this be approved in lieu of the original submitted to you in error and that the re scinded copy be returned to us for appropriate cancellation. No Federal funds have yet been allocated to this project and we therefore would appreciate your prompt considera tion and/or approval of the corrected Part 1 in order that the applicant may be assured that the project can develop with Federal participation. Yours very truly, /s / W m . F. Henderson William F. Henderson WFH: kas Enclosures: a/s Letter From William F. Henderson Excerpts From State Plan (Filed: May 4, 1962) The attached are certified to be true and correct copies of selected data contained in the official records of The North Carolina Medical Care Commission. / s / Wm. F. H enderson William F. Henderson, Executive Secretary The North Carolina Medical Care Commission Date: April 24,1962 T O P I EbftBlT 4 n i « m i e' * --*1 OKillllf 101 C « 4 1 f FOB til I. C. IIIHU Sill COMftSiSXOS t 107a Excerpts From State Plan EXHIBIT A 108a Excerpts From, State Plan METHODS OF ADMINISTRATION A. The North Carolina Medical Care Commission and its Executive Staff accept in good faith and undertake to comply fully with Section 603(d) Public Law 725 and the regulations prescribed by the Surgeon General under Section 622(g) of the said law. Medical Care Commission Enabling Act and Merit Sys tem. The North Carolina Medical Care Commission is required to comply fully with the provisions of the State Personnel Act and the North Carolina Merit Sys tem Law. The enabling act of the Medical Care Com mission (Chapter 131, Article 13) is included in this revision of the State Plan as Exhibit D. The revised Merit System Law and regulations implementing the law are a part of this revision and are included as Exhibit E. All personnel employed in administering the State Plan will be appointed under and subject to the merit system administered by the Merit System Council. (See Exhibit E) The Merit System Council will furnish the Public Health Service with such data and information as are necessary to determine compliance with the Act and Regulations. B. A brief description of the revised State Plan (Exhibit F) was publicized in the News and Observer, a news paper having Statewide distribution during the week of May 1, 1961. A copy of the legal advertisement pub licizing the hearing on the State Plan is attached. A hearing was scheduled for 10:00 a.m. on May 15, 1961. No persons appeared during the time scheduled for the hearing and no questions or inquiries were received in this regard. 109a One approved copy of the State Plan will be available in the office of the Medical Care Commission for public examination. C. After approval of the State Plan by the Public Health Service, the Commission will develop a Project Con struction Schedule which will list the projects for which construction can be commenced immediately. The Sched ule will be developed by inviting applications from spon soring agencies in areas of the greatest unfilled need and in the order of the area priorities as shown in the over-all construction program. The number of projects included on the Project Construction Schedule will de pend upon the amount of the Federal allotment to the State. Projects will be selected for the Project Construction Schedule after consideration of the following factors: (1) The priority of the project as determined in ac cordance with the principles outlined in the State Plan for determination of relative need. (2) The intent of sponsoring agencies to begin construc tion within a reasonable length of time. (3) The ability of the sponsoring agency to meet the financial requirements for construction, maintenance and operation of the proposed facility. (4) The maintenance of an appropriate balance in the construction of the various categories of facilities. The balance between categories of facilities need not be reflected in each Project Construction Schedule. If a project is removed from the Project Construction Schedule by the Commission, the Schedule will be re Excerpts From State Plan 110a vised to include the most highest priority project which meets the requirements for inclusion. The fact that a project is excluded from the Project Construction Schedule for any of several reasons will not change the project priority rating (although for other reasons this priority may change). Such projects will be considered for inclusion in each succeeding Proj ect Construction Schedule. A Project Construction Schedule for the fiscal year be ginning July 1, 1961 will be submitted to the Regional Office of the Public Health Service after approval of the State Plan and after the amount of Federal funds avail able is determined for the fiscal year. Commission policy provides that applications will be submitted not later than June 30 of each year for projects to be considered with funds available for the year beginning July 1. As is customary, it is expected that project applications will be reviewed at the quarterly meeting* of the Commission to be held in September. Following the meeting, the Project Construction Schedule reflecting the projects ap proved will be submitted to the Public Health Service for consideration and/or approval. Applications received after July 1, 1961 may be considered if there is an excess of funds not required to finance applications received within the prescribed period. However, priority will be extended only to applications submitted in accordance with the policy deadline of June 30. Applications for Federal assistance under Public Law 725 will be submitted on the Project Construction Appli cation which is proscribed by the Public Health Service. D. Construction and equipping of projects assisted under this program shall comply with the general standards of Excerpts From State Plan 111a construction and equipment prescribed by the Surgeon General and published in Part 53, Sub-part M— (Ap pendix A), and which are hereby adopted as minimum standards by the North Carolina Medical Care Com mission. ' Copies of such standards are available for inspection at the office of the Commission. E. When a request for payment of an installment is made, the Commission will make an inspection of the project to determine that services have been rendered, work has been performed, and purchases have been made as claimed by the applicant and in accordance with the ap proved project application. In addition, the Commission will make such additional inspections as are deemed necessary. Reports of each inspection will be retained in the files of the Commission. F. Requests for construction payments shall be submitted by applicants to the North Carolina Medical Care Com mission at the times prescribed by regulations. Under existing law, the State is authorized to make pay ment of Federal funds to all types of applicants as ap proved by the Commission. Federal funds shall be paid to the Treasurer of the State of North Carolina. The State will promptly remit or credit all payments of Federal funds received by the State for payment to applicants for approved construc tion projects. G. The Commission will comply with the provisions of Sec tion 53.129 of the Regulations bĵ maintaining the neces sary accounting records and controls, and requiring ap plicants for Federal funds to maintain adequate fiscal records and controls. Excerpts From, State Plan 112a The Commission agrees that it will retain on file all docu ments coming into its possession which relate to any ex penditure under Public Law 725. In addition, the Com mission will take such steps as are necessary to assure that applicants (1) retain all relevant and supporting documents pending audit by the Public Health Service and (2) establish suitable property inventory records covering all equipment of more than nominal value. The State Agency further agrees that it will: (1) retain the accounting records, controls and docu ments described in “a” and “b” of Section 53.129 of the Regulations for a period of at least one year beyond its participation in the program. (2) take such steps as are necessary to assure that ap plicants retain the fiscal records, controls and docu ments described in “ a” and “b” of Section 53.129 of the Regulations for a period of at least two years after the final payment of Federal funds. H. Approved Federal Rate of Participation. It is expected that the Federal rate of participation in approved proj ects for the fiscal year beginning July 1, 1961 will be Excerpts From State Plan approved by the Commission as follows: Projects under Part C .......................................... 55% Diagnostic and Treatment Centers (Part G-)__ 55% Nursing Homes (Part G ) ....................... ............. 55% Chronic Disease Hospitals (Part G) ................ 55% Rehabilitation Facilities (Part G) The State’s maximum allot ment percentage, as provided in Policy Memorandum A-6- 61, February 13, 1961. 113a In view of commitments to the existing Project Con struction Schedules of the Commission, it is expected that the above rates of participation, which, except for rehabilitation facilities, are the same as authorized for the fiscal year beginning July 1, 1960, will have to be continued; however, formal approval will be required by the Commission and this transaction is included in the agenda for the meeting to be held in June, 1961. Unless further notified, the maximum allotment percentage for the State for the fiscal year July 1, 1961-June 30, 1962 will be the prevailing rate for rehabilitation facilities. INTRODUCTION The following plan constitutes the 14th Annual Revision of the North Carolina State Plan developed in accordance with Hill-Burton requirements. This revision incorporates all new hospital and medical facilities construction under taken since the last revision. Projects approved during 1962 fiscal year are based on the provisions of this plan. Except where separate facilities are programmed for separate population groups, no application for construction of hospital, diagnostic and treatment centers, rehabilitation facilities, nursing homes or public health centers will be approved under the State Plan unless the applicant in cludes therein the following assurance: “The applicant hereby assures the State agency that no person in the area will be denied admission as a patient to the facility on account of race, creed, or color.” Where separate facilities are programmed for separate population groups, Form PHS-8, Non-Discrimination Re port, has been included in the State Plan. Excerpts From, State Plan 114a STATEMENT REGARDING CONSULTATION WITH REHABILITATION AGENCIES In that representatives of agencies and groups concerned with rehabilitation are not included in the composition of State (Hospital) Advisory Council, the Medical Care Com mission (State Agency) will consult with the Division of Vocational Rehabilitation of the North Carolina Depart ment of Public Instruction on matters pertaining to the development of rehabilitation centers throughout the State. Other agencies, when indicated, will be consulted, e.g., North Carolina Commission for the Blind, Cerebral Palsy Association, Crippled Children’s Section, North Carolina State Board of Health, and the Medical Schools of the State. North Carolina State (Hospital) Advisory Council Mr. Joe M. Cox, Laurinburg, N. C., Attorney Mr. Claude F. Gaddy, 301 Hillsboro Street, Raleigh, N. C., Executive Secretary of the Council on Christian Education of the North Carolina Baptist State Convention; former Superintendent of Raleigh Schools; former Administrator, Rex Hospital, Raleigh, N. C. Dr. Fred C. Hubbard, North Wilkesboro, N. C., former President of the North Carolina Medical Society of the State of North Carolina. Mr. James P. Richardson, Charlotte, N. C., Superintendent of the Presbyterian Hospital, Charlotte, N. C. Dr. Eugene A. Hargrove, P. 0. Box 70, Raleigh, N. C., Commissioner of Mental Health of North Carolina Hos pitals Board of Control. # * # # # Excerpts From State Plan 115a Reserve beds have been assigned to exceptional areas in accordance with the above factors on the basis of the next logical addition to existing facilities. It has been arbitrarily determined that logical additions for various sizes of hospitals may be considered for planning purposes as follows: 15- 49 beds— 10 additional beds 50- 99 beds— 25 additional beds 100-199 beds— 75 additional beds 200-299 beds—100 additional beds 300-500 beds—150 additional beds The above determinations will not be used to limit par ticipation in a project to involve construction of beds in excess of the logical addition when utilization is demon strated to the contrary. The relative need for each general hospital service area has been determined by computing the percentage of need met by existing suitable beds. The Non-Discrimination Report, Form PHS-8, has been prepared where there are separate facilities programmed for separate groups of the population in accordance with previously developed patterns. Definitions of Suitability of Physical Facilities Hospital physical plants are classified as to “ suitable” and “ replaceable” for planning purposes. 1. Suitable Facility The physical plant must (a) conform basically to the requirements of the North Carolina State Build Excerpts From State Plan 116a ing Code for institutional buildings, or be capable of complying with the code without excessive costs (25 per cent of the current valuation of the buildings is determined excessive); (b) be reasonably well designed for the services provided; (c) have a de signed capacity of more than 15 beds and (d) be capable of modification or expansion to meet the future hospital needs of the community. * # # # # THE NORTH CAROLINA MEDICAL ,CARE COMMISSION Raleigh, North Carolina NURSES’ TRAINING FACILITIES FOR GENERAL HOSPITALS Explanation The trend in North Carolina is away from the construc tion of nurses’ residences in view of the low occupancy of such facilities experienced by most hospitals in recent years. The Commission, therefore, has adopted the general policy of approving such facilities only for general hospitals which conduct accredited schools of nursing. Exceptional circum stances, however, would be studied on the basis of individ ual merits. It has always been the case that the State agency would approve any meritorious proposal for facil ities in this category. Consequently, in the past, no formal criteria have been developed relating to priorities except to specify that the facility must be in connection with an accredited school of nursing, so long as other occupancy data would justify the project. Because of the increased need for nursing personnel throughout the State, the Com mission would give high priority on its funds to participa Excerpts From State Plan 117a tion in expanding or developing schools of nursing by as sisting in the construction of training facilities for nursing personnel required by the sponsoring hospital. Need For the purposes of planning nurses’ training facilities for general and related hospitals, bed count is used as the basic unit for establishing need; however, other factors such as inadequacy of clinical teaching facilities may be considered in establishing need with reference to existing programs. In determining the number of beds needed, the nurses re quired to be graduated and licensed each year should be investigated. The following factors influence the need for nurses: 1. According to the National League of Nursing, it is estimated that three nurses per 1,000 population are needed to fill the demand for all types of nursing ser vice. There are at present 10,303 registered graduate nurses working in North Carolina (according to the North Carolina State Board of Nurse Registration and Nursing Education), or a ratio of 2.30 per 1,000 population. The number of nurses needed to main tain three per 1,000 population is 13,423, giving a cur rent deficit of 3,122 nurses. Therefore, it is estimated that North Carolina will need 312 additional graduate nurses per year for the next decade to overcome the present deficit. 2. In addition to absorbing current shortages, the in creased population will demand that 69 nurses be li censed each year. Excerpts From State Plan 118a 3. In 1958 North Carolina lost to other states 512 nurses, while gaining only 400 from other states, or a net loss of 112 nurses. 4. Approximately 5 per cent of the total nurses actively practicing is lost annually due to retirement or other reasons. It will take 515 additional nurses each year to replace the ones lost in this manner. In summary, 312 plus 69 plus 112 plus 515, or a total of 1,008 nurses need to be licensed each year in order to over come the existing deficit and maintain a level to supply fu ture demand. In 1960, North Carolina schools of nursing with 2,891 beds graduated 696 nurses. According to this ratio, 4,187 beds are needed to educate 1,008 nurses per year. Since there are at present only 3,208 beds existing and under con struction, an additional 979 beds may need to be constructed in North Carolina for present and immediate future pur poses. This does not take into consideration any of the defects in the present schools. The attached Form PHS-8 shows the distribution of population in North Carolina on the basis of white and non-white and the needs for beds in the nurses’ training facilities for the white and non-white segment of the popu lation over the 10-year period based on the present popula tion distribution. On this basis, the need for white beds is 3,124 and for non-white beds, it is 1,063. There are at present 2,875 beds for white students and 333 beds for non-white students. To meet the desired goal, 249 additional beds are needed for training white students and 730 additional beds for training non-white students. Excerpts From State Plan 119a The Commission considers it unrealistic to program beds in nurses’ training facilities for designated areas within the State. It is felt that in the interest of avoiding duplica tion geographical location should not be considered a prime factor in the construction of such facilities. The planned beds will be assigned on a State-wide basis and may be uti lized by a sponsor located in any logical area within the State proposing an accredited training program. It is recognized that nurses, irrespective of race, provide services to all segments of the population. Because of the scarcity of nurses, the Commission has determined that special priority shall be given to those applications that provide for training facilities for nurses. Consideration will be given on the basis of demonstrating ability to operate a training school and approval of the program by the State Board of Nurse Registration and Nursing Education, the official State agency for accrediting professional schools of nursing. Excerpts From State Plan * * * * # 120a Excerpts From State Plan SUPPLEMENT TO FORM PHS-8, NON-DISCRIMINATION REPORT REVISED JANUARY 3, 1962' Approved PUS 1-22-62 Existing Area Name of Facility Location Acceptable Beds Non- White White B-l Charlotte LET Hospital Charlotte 36 0 Charlotte Memorial Hospital Charlotte 430 261 Mercy Hospital Charlotte 199 31 Presbyterian Hospital Charlotte 360 0 Subtotal 1025 57 B-2 City Memorial Hospital Winston-Salem 250 0 Forsyth County Hospital Winston-Salem 540 0 Subtotal 790 0 B-3 Lincoln Hospital Durham 0 125 McPherson Hospital Durham 36 9 Watts Hospital Durham 300 0 Subtotal 336 134 R-40 Granville Hospital Oxford 54 0 Shaw Memorial Hospital Oxford 0 30 Subtotal 54 30 B-6 L. Richardson Memorial Hospital Greensboro 0 91 Wesley Long Hospital Greensboro 220 0 Moses H. Cone Hospital Greensboro 482 0 Subtotal 702 91 1 Tentative figures—hospitals now under construction. 121a Excerpts From State Plan Existing Area Name of Facility Location Acceptable Beds Non- White White B-4 Eex Hospital Raleigh 315 0 Memorial Hospital of Wake Co. Raleigh 132 168 Apex Hospital Apex 12 81 Fuquay Varina Hospital Fuquay 12 8 Wake Forest Hospital Wake Forest 12 81 Wendell-Zebulon Hospital Zebulon 12 81 Subtotal 495 200 1-12 Garrison General Hospital Gastonia 47 0 Gaston Memorial Hospital Gastonia 130 0 Subtotal 177 0 1-39 Wilson Co. Hospital Wilson 150 b-1 o o Subtotal 150 100 1-38 Good Shepherd New Bern 0 58 Craven County Hospital New Bern 68 32 Subtotal 68 90 1-8 Babies Hospital Wilmington 57 2 Cape Fear Memorial Hospital Wilmington 72 0 Subtotal 129 2 State Totals 3926 704 1 Tentative figures—hospitals now under construction. 2 Tentative figures—hospital now in planning stage. 122a Rules and Regulations for Hospital Licensure in North Carolina (Filed: May 4, 1962) R evised September 16, 1960 SECTION I—ADMINISTRATION A. GOVERNING BOARD The governing board, or owner, or the person or persons designated by the owner as the governing authority shall be responsible for seeing that the objectives specified in the charter (or resolution if publicly-owned) are attained. This shall include the selection and appointment of a com petent administrator and a medical staff and the formula tion or approval of such bylaws as may be desirable for the proper operation of the hospital. The governing board shall be the supreme authority in the hospital to which the administrator, the medical staff, the personnel, and all auxiliary organizations are directly or indirectly respon sible. B. ADMINISTRATOR There shall be a competent, well-trained executive officer or administrator with authority and responsibility for the operation of the hospital in all its administrative and pro fessional functions, subject only to the policies enacted by the governing board and to such orders as it may issue. The administrator shall be the direct representative of the governing authority in the management of the hospital and shall be responsible to said board alone for the proper performance of his duties. C. ACCOUNTING The financial and statistical records of the hospital shall be available for inspection at all times within business 123a hours by the Commission through its duly authorized offi cers, agents or employees. D. TELEPHONES There shall be a telephone in the building and additional telephones or extensions as required to summon help promptly in case of fire or other emergency. E. PERSONNEL All professional and non-professional personnel shall be given a preemployment examination consisting of a general physical examination including a chest x-ray, and stool cultures if a history of typhoid is elicited. The physical examination including the chest x-ray is to be repeated annually on all personnel. Any person who shows signs of upper respiratory infections, skin lesions, diarrhea, or other communicable disease shall be excluded from work if, in the judgment of a physician, it is necessary to do so for the protection of patients and others. SECTION II—CLINICAL SERVICES A. MEDICAL STAFF 1. Organization and Qualifications In any hospital used by two or more physicians for the treatment of injury or disease, the physicians and surgeons privileged to practice in the hospital shall be organized as a definite medical staff which shall initiate and, with the approval of the governing authority of the hospital, adopt rules, regulations, and policies which specifically provide: a. For eligibility for membership on the staff; Buies and Regulations for Hospital Licensure in North Carolina 124a b. That the medical staff meetings be held at least once a month; c. That the medical staff review and analyze at regular intervals their clinical experience in the various departments of the hospital; the medical records of the patients, free and pay, to be the basis for such review and analysis. Every person admitted to practice in the hospital shall qualify for membership on the medical staff by submitting a signed application in writing which shall contain the fol lowing data: age, year, and school of graduation, date of licensure, statement of postgraduate or special training and experience, statement of the type of medicine the ap plicant desires to practice, a pledge that if appointed the applicant will comply with the rule and regulations of the hospital so far as they affect him and his membership on the medical staff, and include a statement of his own special qualifications and a resolution against division of fees in accordance with the requirements of the American College of Surgeons. All rules and regulations and policies adopted by the medical staff and a roster of medical staff members shall be available to the Commission upon request. In hospitals with twenty-five beds or more, the organized medical staff shall annually elect a staff member to be chief-of-staff, and it shall elect a member to be the respon sible head or chief of each of the departments or services in the hospital, such as obstetrics, pediatrics, surgery, med icine, etc. In hospitals of less than twenty-five beds, the medical staff shall annually elect one of its members to be chief-of-staff. Rules and Regulations for Hospital Licensure in North Carolina 125a 2. Supervision of Patient Care All persons admitted to any institution covered by these standards must be under the care of a physician or surgeon who has (a) a degree of Doctor of Medicine, is in good standing, and legally licensed to practice in North Carolina; (b) competent in his field; and (c) worthy in character and in matters of professional ethics; and does not practice fee-splitting under any guise whatsoever. A diagnosis shall be entered in the admission records. 3. Orders for Medication and Treatment No medications or treatments shall be given in institu tions covered by these standards except on the order of a physician. 4. Availability for Emergencies All hospitals shall have one or more duly licensed physi cians available on call for emergencies at all times. B. SURGERY 1. Facilities Every hospital in which surgical operations are per formed shall have an operating room; scrubbing and toilet facilities; sterilizing apparatus; and other equipment and instruments in keeping with the requirements of modern surgery. This room shall be provided for exclusive use as an operating room and shall be located as not to be used as a passage between other parts of the hospital and shall not be subject to contamination from other parts of the hospital. Hospitals with less than 20 beds— (see OBSTETRICS— 1.—c. Delivery Room). Rules and Regulations for Hospital Licensure in North Carolina 126a Rules and Regulations for Hospital Licensure in North Carolina 2. Organisation The operating room shall be under the supervision of registered nurses. Surgical operations shall be done only by physicians designated by the hospital as qualified to do surgery. An accurate and complete description of the technique of operation and the findings and a statement of organs or tissues removed together with the post-operative diagnosis shall be entered by the surgeon in the patient’s record im mediately following the operation. It shall be the policy of all hospitals providing services for sugical care to have available facilities for the pathological examination of tissue specimens, except tonsils and adenoids, either on the premises or by arrangement through affiliation, or other means, with a competent pathological laboratory. 3. Procedures An acceptable aseptic technique shall be observed in all major or minor operative procedures. Proper care shall be taken to prevent contamination of the surgical field, sterile tables or operating team by visitors. After an operation on a septic case, the operating room shall be thoroughly cleansed in a manner adequate for the type of contamination existing. C. OBSTETRICS 1. Facilities a. Maternity Obstetrics and newborn services shall be located and arranged as to provide for complete protection of mothers and newborn infants from infection and from cross-infec tion from patients in other services in the hospital. 127a There shall be written provisions and policies in regard to the care of patients with an infectious, contagious or communicable disease which will insure the protection of other maternity or newborn infants and other patients. The hospital shall have adequate facilities for steriliza tion of equipment, supplies and instruments. b. Labor Room There must be satisfactory provision for the care of patients in labor either in the patient’s room or in a desig nated special labor room. Rooms used for this purpose should afford desirable privacy, be conveniently located with reference to the de livery room, and should be so located as to minimize the possibility of sound reaching other patients’ rooms. If analgesia is used, beds shall be equipped with guard rails. There must be facilities for examination and prepara tion of patients as required by the attending physician. c. Delivery Room Hospitals with less than twenty beds: a delivery room used for no other purpose is recommended. If one room is used for both surgery and delivery room, the admission of infected cases to the surgery will be discouraged. However, if the surgery is used for an infected case, it will receive a thorough scrubbing of all floors and walls, there will be a thorough cleaning and sterilization of all equipment after such use, before being used as a delivery room. Hospitals with twenty beds or more: the delivery room shall be used for no other purpose, and it should be used only for the delivery of non-infected patients. Rules and Regulations for Hospital Licensure in North, Carolina 128a Delivery rooms shall include the following: (1) Sphygmomanometer and stethoscope. (2) Adequate facilities for anesthesis shall be provided. A small table conveniently placed shall contain arti cles needed by the anesthetist. (3) There shall be several sterile syringes, with suitable needles for oxytocics and emergency medications. (4) A sterile package of instruments and gauze for uterine packing shall be at hand. (5) Instruments for repair of lacerations and handling other occasional delivery accidents shall be provided in sterile packages if they are not supplied routinely in the delivery set. (6) Facilities for intravenous therapy shall be available. In addition to flasks of sterile glucose and saline solu tion, all hospitals accepting maternity patients shall have, on the premises, a standard preparation of blood plasma or serum. (7) A properly-heated bassinet shall be available for each delivery. There shall be no hazardous electrical equipment on the bassinet. (8) A table or tray shall be provided containing articles needed for treating cord, and silver nitrate or pen- eillin or other accepted chemotherapeutic agent for treating the eyes of the infant. (9) There shall be available facilities for suction, such or tracheal catheter, and equipment for administer ing oxygen to the infant. Buies and Regulations for Hospital Licensure in North Carolina 129a (10) An acceptable means of identifying each infant shall be available in every delivery room. d. Nursery A nursery, not to be used for any other purpose, must be provided for the newborn with adequate space, light and ventilation. There shall be provisions for a suspect nursery for in fants suspected of a contagious, infectious or communicable disease; and there shall be provisions for the complete isolation of infants with a known infectious, contagious or communicable disease. Newborn and older infants admitted from the outside shall not be cared for in the newborn nursery. Suction apparatus and oxygen should be easily and quick ly available in the nursery. The premature should be cared for in a separate nursery or should be segrated in the newborn nursery. A large plainly legible wall thermometer shall be pro vided for the nursery. An accurate scale for weighing newborn shall be provided. Running hot and cold water and suitable receptacles for the disposal of waste and soiled linens shall be provided in or adjacent to each nursery. 2. Organisation a. Maternity Every birth occurring in a hospital shall be attended by a medical doctor who shall possess the qualifications pre scribed in Section II, A above. Nothing in this paragraph is intended to prevent members of the hospital resident Rules and Regulations for Hospital Licensure in North Carolina 130a staff, when acting under the authority and supervision of the attending medical doctor, from attending at births. A graduate registered nurse when available shall be responsible at all times for the nursing care of maternity patients and newborn infants. The needs of the individual hospital will determine the number of nurses to be employed. It is desirable that nurses caring for maternity patients shall not care for other pa tients. Rules and Regulations for Hospital Licensure in North Carolina b. Nursery Nurses assigned to infected infants shall not care for other infants at the same time. 3. Procedures a. Maternity Routine nursing procedures for care of obstetric patients and newborn infants shall be prepared in written form. Accurate and complete medical records must be provided for all maternity patients, and separate records for infants. The standard forms approved by the American College of Surgeons are recommended. Any indication of infection must be reported immediately to the attending physician in charge of the patient. Immediate segregation and isolation of all mothers with infection, fever or other condition inimical to the safety and welfare of others must be provided in a separate room. A mother shall be considered infected i f : (1) She has a communicable disease or is suspected of such, or if she is a carrier. (2) She nurses an infected infant. 131a (3) She is delivered outside the maternity unit of the hospital in which she is afterwards cared for. (4) She has an unexplained fever during the puerperium. For the protection of mothers and newborn infants, the Commission requests every institution receiving maternity patients to observe the following rules and regulations. (1) The number of visitors to a maternity patient should not exceed two, exclusive of the husband, at any t i m e, (2) Visitors known to have an existing or recent com municable infection, as well as those having contact with such infection, shall be excluded. (3) Visitors must not sit on beds or place articles of clothing on the beds of maternity patients. (4) Children under 12 years of age are not permitted to visit in the maternity department of a hospital. (5) Visitors may not enter the nursery or have direct contact with infants. (6) Whenever babies are shown to visitors, there must be a complete separation, by a glass window, of babies from visitors. No visitors should be allowed in the mother’s room during nursing hours. b. Labor and Delivery Room- The physician shall be notified when the patient is ad mitted and immediately upon onset of labor. Rules and Regulations for Hospital Licensure in North Carolina 132a Rules and Regulations for Hospital Licensure in North Carolina D. PEDIATRICS 1. Facilities Hospitals providing pediatrics care shall have proper facilities for the caring of children apart from the services for adult patients, apart from the newborn nursing service and there shall be proper facilities and procedures for the isolation of children with infectious, contagious or com municable conditions. E. ANESTHESIA 1. Facilities In the surgical department or division of any hospital, there shall be facilities and equipment for the administra tion of anesthesia, commensurate with the needs of the hospital. 2. Procedures Operations under a general anesthetic (inhalation, spinal, intravenous or rectal) shall not be performed nor a general anesthetic given until the patient has had a physical ex amination including examination of the chest for respira tory infection or cardiac disease and including a urinalysis with tests for albumin and sugar. In case of an emergency the operation may be done without the physical examination and tests, but a note shall be made in the patient’s record stating the reason for the operation and be signed by the attending surgeon and another member of the staff qualified to use the operating room for surgery. The results of these examinations, together with the pre-operative diagnosis, shall be entered on the patient’s record. After the adminis- 133a tration of a general or spinal anesthetic, patients shall be constantly attended by a nurse until they have regained consciousness, or until the effects of the anesthetic have worn off. After any major operation, adequate nursing services shall be provided so that patients are closely watched and given all necessary care. F. CLINICAL PATHOLOGICAL LABOKATORY 1. Facilities Hospitals of 49 beds and under shall provide facilities for performing routine chemical and microscopic examina tions of the urine and complete blood counts. Hospitals of 50 beds or over shall have a laboratory capable of making the standard hematological, bacterio logical, pathological and chemical examinations, or have regular arrangements for obtaining all such services from an approved laboratory. 2. Organisation The laboratory shall be under the actual supervision of a physician, preferably a trained clinical pathologist or one who has had special training in clinical laboratory diagnosis, whose judgment should be accepted in doubtful finds. 3. Records All requests for laboratory service shall be presented in writing; results from all laboratory tests should be writ ten indelibly on the patient’s record. 4. Required Tests All patients above 16 years of age, except maternity patients who have had a blood test during their current Rules and Regulations for Hospital Licensure in North Carolina 134a pregnancy, shall have a recognized standard blood test for syphilis, within 3 days after admission. If examinations of blood for syphilis are performed in the hospital labora tory, the requirements as defined by the State Department of Health for pre-marital or pre-natal serology test must be met. G. RADIOLOGY 1. Facilities All hospitals shall have adequate space and equipment for diagnostic x-ray and fluoroscopic examinations. There shall be space for safe film storage, view boxes, and a dark room. 2. Organization x-ray department shall be in charge of properly qualified physicians. 3. Records A written report on each x-ray film taken shall be made and properly recorded as a part of the patient’s record. H. OUT-PATIENT DEPARTMENT Any hospital concerned with emergency or out-patient shall provide space and facilities for emergency treatment, including the administration of blood or blood plasma and intravenous medication, facilities for the control of bleed ing, and the emergency splinting of fractures, and it shall provide for facilities for the administration of oxygen and anesthesia. Competent personnel shall be at all times avail able on call for the care of emergencies. Rules and Regulations for Hospital Licensure in North Carolina 135a Buies and Regulations for Hospital Licensure in North, Carolina I. ISOLATION There shall be available a room or rooms which shall be used for isolation of a patient or patients with communi cable disease. These rooms can be planned at the end of a corridor or off a sub-corridor, and there must be observ ance of accepted measures of aseptic technique in care of such cases. SECTION III—AUXILIARY SERVICES A. PHARMACY 1. Facilities Hospitals operating and maintaining a pharmacy shall have adequate space for storage and compounding and dispensing drugs. The compounding of prescriptions shall be done by a pharmacist licensed to practice pharmacy in North Carolina. There shall be adequate refrigeration for biologicals and such drug products as require refrigeration. 2. Storage of Medicine All medicines, poisons, and stimulants kept in a nursing service division shall be plainly labeled and stored in a specially designed medicine cabinet, closet or storeroom, and made accessible only to authorized personnel. The cabinet for drugs shall be well illuminated. 3. Narcotics and Special Prescriptions When orders have been discontinued or the patient dis missed, all medication shall be discarded, or returned to 136a the pharmacy, or taken out with the patient according to the doctor’s orders and the suitability of the medication for re-issue for the use of other patients. Narcotics must be securely locked at all times and ac cessible only to persons in charge. B. MEDICAL RECORDS AND REPORTS 1. Facilities Provisions shall be made for safe storage of all medical records. 2. Organization The responsibility for supervision, filing, and indexing of medical records shall be delegated to a trained medical records librarian or to a responsible employee of the hos pital. In hospitals of 25 beds or more, medical records shall be indexed fo r : the patient, the disease, the medical or surgical procedure involved, the physician, the results and any other pertinent information deemed necessary by the med ical staff. A member or committee of members appointed by the medical staff should be appointed to ascertain whether or not the medical records are adequate and up-to-date; and to formulate rules and regulations and assist in their enforcement. Records of patients are the property of the hospital and must not be taken from the hospital property except under subpoena. When taken from the hospital property under subpoena, they must be returned to the hospital at the end of the hearing for which they were directed to be procured. The administrative officer shall be responsible for the en forcement of this rule. Rules and Regulations for Hospital Licensure in North Carolina 137a Rules and Regulations for Hospital Licensure in North Carolina 3. Content Adequate and complete medical records shall be written for all patients admitted to the hospital. These records shall be filed in an orderly and accessible manner in. the hospital. A minimum medical record shall include the fol lowing information: Identification data (name, address, age, sex, marital status) Date of admission Date of discharge Personal and family history Complaint History of present illness Physical examination Special examination, if any, such as: consultations, clinical, laboratory, x-ray Provisional diagnoses Medical treatment Complete surgical record, if any Progress and nurse notes Temperature chart including pulse and respiration, medications Final diagnoses Condition on discharge In case of death—autopsy findings, if any All orders of physicians for medication and other ser vices shall be written in ink and signed by the prescribing physician or undersigned by him within 24 hours. If narcotics are administered from a stock secured by the hospital under a Federal permit, each dose shall be recorded on a permanent narcotic record, wherein shall 138a be recorded the date, hour, name of patient, kind of nar cotic, dose and by whom administered. If administered by prescription only, it shall be sufficient to record each dose on the clinical record of the patient. SECTION IV—NURSING SERVICE A. ORGANIZATION The department of nursing and all nursing personnel shall be organized to provide complete and efficient care to each patient, and the authority, responsibility and func tion of each nurse and all nursing personnel shall be clearly defined, by establishing definite personnel policies. There shall be regular meetings of the professional nurs ing staff to review and analyze the nursing service and to determine the quality of the nursing care rendered to patients and to increase the efficiency of the nursing care. Applications for employment as to registered nurse shall be submitted, in writing, to the person responsible for nurs ing personnel, and each application shall contain accurate information as to the education, training, experience and personal background of each applicant. All professional nursing personnel shall be registered in the State of North Carolina. B. PROFESSIONAL PERSONNEL There shall be at least one professional registered nurse on duty at all times. In hospitals of 50 beds or more, there shall be a pro fessional registered nurse on duty or on call for each specific service or department in the hospital. Rules and Regulations for Hospital Licensure in North Carolina 139a The superintendent or director of nursing service shall be a competent and well-trained person with administrative and executive ability and she shall be a graduate nurse and registered in the State of North Carolina. Nursing care shall be that amount of professional and non-professional care essential to provide proper treatment for the well-being and the recovery of the patient. C. NON-PROFESSIONAL PERSONNEL Practical nurses, subsidiary workers, orderlies and at tendants, both male and female, who are employed by hospitals, shall be assigned only those duties for which they are trained. They shall be under the supervision of a graduate nurse staff. All practical nurses shall be regis tered in the State of North Carolina. SECTION y —FOOD SERVICE A. SUPERVISION The dietary department shall be under the supervision of a trained dietitian or a person skilled in the handling, preparation and serving of foods and the supervision and management of food handlers. The dietitian or person in charge of the department shall, with the approval of the administrator of the hospital, initiate policies and procedures with which each employee shall be familiar and these shall provide for the adminis trative and technical guidance of all personnel handling food. Rules and Regulations for Hospital Licensure in North Carolina 140a B. PHYSICAL APPLIANCE AND EQUIPMENT The floors of kitchens, diet kitchens, dining rooms, and pantries, and the floors of all rooms in which food is stored, prepared, or served, or in which ntensils are washed, shall be of such construction as to be easily cleaned, shall be smooth, and shall be kept in good repair. The walls and ceilings of such rooms shall have a smooth washable sur face, and shall be kept clean and in good repair. In con struction done after the adoption of these regulations and where practical to change in existing structures, all walls and ceilings shall be finished in light color. All such rooms shall be so constructed as to prevent the entrance of rats and mice. All rooms in which food is stored, prepared, or served, and in which utensils are washed, shall be well lighted and provided with adequate ventilation. Where flies are prevalent, all doors and windows, or other openings into the outer air, shall be effectively screened, and the doors shall be self-closing, unless other effective means are provided to prevent the entrance of flies. Storerooms and cupboards, including shelves and racks, shall be constructed of easily cleanable, smooth material, and shall be kept clean and orderly. The contents of such rooms and storage places shall be neatly stored at least 15 inches above the floor, and unnecessary and obsolete items shall not be permitted to accumulate therein. All eating, drinking, and cooking utensils, and all tables, shelves, refrigeration equipment, sinks, and other equip ment or utensils used in connection with the hospital kitchen, shall be so constructed as to be easily cleaned, and shall be kept in good repair. Rules and Regulations for Hospital Licensure in North Carolina 141a All equipment, including shelves, tables, counters, re frigerators, stoves, hoods, sinks, meat blocks, potato peelers, grinders, slicing machines, saws, and mixers shall be kept clean and free from dust, dirt, insects, and other contaminating material. All cloths and rags used by chefs and other employees in the kitchen shall be clean. Single service containers shall be used only once. C. DISHWASHING All dishes, knives, forks, drinking glasses, cups, and other eating and drinking utensils shall be thoroughly washed, rinsed, and subjected to an approved bactericidal treatment after each usage. All multi-use utensils, such as mixing bowls, cream dispensers, stock pots, baking pans, and other utensils used in the storage, preparation, cook ing, or serving of food and drink shall be thoroughly cleaned and rinsed immediately after the day’s operation, or upon completion of each meal, if necessary. The minimum dishwashing facilities shall consist of a heavy gauge three compartment sink of adequate size and depth, with hot and cold running water service for each vat, splash back protection, continuous with the sink and an integral part of the sink, and drain boards on each end of ample size to accommodate the number of eating and drinking utensils involved. Separate facilities shall be re quired when necessary for the washing of glasses, and, when needed, separate facilities shall be required for the washing of pots, pans, and vegetables. The facilities for the heating of water shall be adequate and effective, and the storage capacity shall be ample. When dishwashing machines are used, the machines shall be approved, and shall be fitted with drain boards of ample capacity on each Rules and Regulations for Hospital Licensure in North Carolina 142a side, and include a counter-sunk sink or other approved means for pre-cleaning or pre-soaking of the utensils in the dirty dish lane. Thermometers indicating the tempera ture of the wash and rinse water shall be required. Where it is deemed necessary, mechanical glass and dish washing equipment shall be required. After cleaning (i.e., cleaning to sight and touch), and thorough rinsing, all such utensils are effectively subjected to one or more of the following, or other equivalent bac tericidal processes: 1. Immersion for at least two minutes in clean hot water at a temperature of at least 170° F. An approved ther mometer shall be availably convenient to the vat. The pouring of scalding water over wrnshed utensils shall not be accepted as satisfactory compliance. Where hot water is used for bactericidal treatment, there shall be provided a hot water heater (preferably controlled by a thermostat) capable of maintaining water temperature of at least 170° F. in the vat at all times when the dishes are being washed. The heating device may be integral with the immersion vat. In any case, the supply of hot water must be ample to last through the period of greatest demand. 2. Immersion for at least two minutes in a chlorine rinse containing at least 50 p.p.m. of available chlorine, if hypo chlorites are used, or concentration of equal bactericidal strength if chloramines are used. Where chlorine treat ment is used, a three-compartment vat shall be required, the first compartment to be used for washing, the sec ond for rinsing, and the third for chlorine immersion. The first basket of utensils will remain in the chlorine Rules and Regulations for Hospital Licensure in North Carolina 143a rinse for at least two minutes while the second basket is in the plain rinse, and the third basket is being washed. If hot water is maintained in the chlorine rinse, the dishes will dry quickly after the basket is removed from the third vat. Silver and silver-plated tableware should not be treated with chlorine, as silver chlorides are formed which blacken the silver. 3. Exposure in a steam cabinet, equipped with an indicated thermometer, located in the coldest zone to at least 170° F. for at least 15 minutes or to at least 200° F. for at least 5 minutes. 4. A sufficient supply of glasses, dishes, cups, goblets, tableware, etc. is provided so that enough time is al lowed for proper washing, rinsing, and bactericidal treatment of those that are being used. 5. In washing machines, where strong alkalies and higher wash water temperatures may be used for cleansing, a shorter exposure period for the final treatment may be employed. In such cases, the above standards for bac tericidal treatment will not apply. After bactericidal treatment, no utensils shall be stored except in a clean, dry place protected from flies, dust, and other contamination, and no utensils shall be handled ex cept in such a manner as to prevent contamination so far as practical. Single service utensils shall be purchased only in sanitary containers and shall be stored therein in a clean, dry place until used. Adequate space should be pro vided in the diet kitchen for the storage of an ample supply of clean glasses. Rules and Regulations for Hospital Licensure in North Carolina 144a D. STORAGE AND HANDLING OF FOOD All food shall be stored, handled, and served as to be protected from dust, flies, rats, vermin, handling, droplet infection, overhead leakage, and other contamination. No animals, or fowls shall be kept or allowed in any room in which food is prepared or stored. All means neces sary for the elimination of flies and roaches shall be used. All readily perishable food or drink shall be kept at or below 50° F., except when being prepared or served. All fresh meats, except in small portions for immediate use, shall be stored at or below 40° F. Where available, grade “A” milk products shall be used. These products shall be served in the original containers in which they are received from the distributor, so that the name and grade of the contents, and the name of the producer or distributor, may be readily observed by the patient. This requirement shall not apply to buttermilk which is used strictly for cooking purposes only. Milk products shall be stored in a sanitary manner and shall be kept refrigerated except when being served. Bottles shall not be completely submerged in water. All foods shall be whole some and free from spoilage. Food that is spoiled or unfit for human consumption shall not be kept on the premises. Portions of food once served to patients, or employees, shall not be served again. E. EMPLOYEES All employees shall be free of communicable and infec tious diseases, such as tuberculosis, syphilis, and gonorrhea, communicable skin diseases, and are not carriers of typhoid. It shall be the responsibility of the management to require Rules and Regulations for Hospital Licensure in North Carolina 145a such inspections and tests as often as are necessary to safeguard the health of the patients and other employees. All employees shall wear clean outer garments, and shall keep their hands clean at all times when handling food, drink, utensils, or equipment. Kitchen employees shall not smoke while engaged in food handling operations. All precautions necessary shall be observed by the nurses and others having contact with patients known to have a com municable disease, and no such persons shall administer to other patients or employees without first eliminating all chances for transmitting disease by observing standard hospital isolation technique. SECTION VI—PHYSICAL PLANT A. CONSTRUCTION Each institution must be so planned, organized, equipped, manned, and administered so as to furnish adequate care for each class of persons which it receives for care or treat ment. The design and construction shall be in accordance with the construction standards of the North Carolina Medical Care Commission, the North Carolina Building Code, and local municipal codes. 1. Submission of Plans Before construction, assisted with Federal and State funds, is begun, plans and specifications covering the con struction of new buildings, alterations, or additions, to existing buildings, and plants, or any change in facilities, may be submitted to the Commission for approval. There- Rules and Regulations for Hospital Licensure in North Carolina 146a upon, the Commission will investigate the plans so contem plated and will notify the licensee that said buildings, alter ations, additions, or changes are approved or disapproved with such recommendations as the Commission will care to make. In order to avoid unnecessary expense in changing final plans, it is suggested that as a preliminary step, proposed plans in sketch form be reviewed with the Commission. The preliminary plans shall include a plot plan showing the size and shape of the entire site and the location of all existing or proposed facilities. 2. Location The site for new construction or expansion, assisted with Federal and State funds, must have the approval of the Commission. Hospitals should be so located that they are free from undue noise from railroads, freight yards, main traffic arteries, schools and children’s play grounds. The site should not be exposed to smoke, foul odors, or dust from nearby industrial plants. The area of the site should be sufficient to permit future expansion and to provide adequate parking facilities. The site should be easily accessible to patients, doctors, and employees. Available paved roads, adequate water, sewerage, and power lines should be taken into considera tion in selecting the site. 3. Fire Protection Facilities and construction shall be in accordance with rules and regulations of the State Fire Marshal. Rules and Regulations for Hospital Licensure in North Carolina 147a a. Anesthetics In addition to all the other requirements pertaining to fire safety, as set forth in these regulations, surgeries, de livery room, minor surgeries, and similar places shall be made to comply with the following general requirements. All electrical lighting fixtures and convenience outlets located below a level of seven feet from the surgery floor shall be of the vapor proof type as approved by the Under writers Laboratory for use in hazardous locations. Open gas flames, electrical heating elements, portable electrical heaters, similar devices not of the type approved for the use in hazardous locations shall not be used in rooms subjected to combustible anesthetic gases. Gas fired sterilizers, hot water heaters, similar equipment located in rooms directly adjacent to the surgery, having doors lead ing thereto, shall be located at a distance of at least ten feet from the door leading into the surgery room. Excep tion to this may be made at the discretion of the Commis sion if adequate mechanical ventilation which will eliminate the possible explosion hazards is provided in this room. Heating in surgeries and similar rooms shall be by steam radiator, hot water or some other device which would not contribute to the ignition of combustible gases. Special precaution shall be taken at all times toward the elimination of static electricity which might provide the ignition of combustible anesthetic gases within this type of occupancy. This may be accomplished by the use of the Horton intercoupler, the electro-static grounding intercoup ler, or a method of applying a conductive rubber floor cover ing properly grounded, or some other recognized means of adequately eliminating the possibility of static electricity. Recognition is also given to the maintenance of a humidity Rules and Regulations for Hospital Licensure in North Carolina 148a within the surgery room which will greatly reduce the static hazard. Every effort should be made to prevent the use of open lights of any description, radio knives, high frequency electrical apparatus, live cauteries, or any other source of ignition in the vicinity of combustible anesthetic gases. Smoking is prohibited in surgeries or in similar hazard ous areas, or within ten feet of the doorway of any room in which combustible anesthetic gases are being used. B. ACCOMMODATIONS FOR PATIENTS 1. Rooms Each patient’s room shall have an outside exposure. Rooms extending below ground level shall not be used for patients unless they are dry, well ventilated, have the required window space and are otherwise suitable for oecu- pany. New Construction: No patient’s room shall be al lowed below ground level. No room shall be used for bed care of patients which can only be reached by passing through another patient’s room. a. Floor Area Beds must be spaced so as to provide adequate room for nursing procedures and to prevent the transmission of infection. Beds must be placed at least three feet apart. Neiv Construction: Private rooms shall have a minimum of' 100 square feet floor area. Semi-private rooms or wards shall have a minimum of 80 square feet per bed with at least 3 feet between beds. Rules and Regulations for Hospital Licensure in North Carolina 149a b. Window Area Window area shall not be less than one-eighth of the floor area. c. Doors Doors to patients rooms should be sufficiently wide to permit easy removal of the occupied bed with at least a 4-inch overall clearance. Vision panels should be placed in all double acting doors. d. Storage Space There shall be satisfactory safe storage space for cloth ing, toilet articles, valuables, and other personal belongings of the patients. 2. Room Furnishings A separate bed shall be provided for each patient with separate mattresses, pillow and bedding. Gateh beds or equivalent shall be provided unless other wise indicated by the type or medical condition of the patient. There shall be a chair and bedside table for each patient. a. Signals Means of signaling nurses must be provided within easy reach of the patient confined to bed. b. Patients’ Screens Screens shall be provided in wards or multi-bedrooms in order to secure privacy for each patient. Rules and Regulations for Hospital Licensure in North Carolina 150a New Construction: All wards or multi-bedrooms shall be provided with cubicle curtains, or equivalent equipment which shall completely shield the patient. 3. Bedside Equipment Individual bedpans, wash basins and mouth wash cups shall be provided for each patient. This equipment shall be plainly marked for each patient, stored so that it cannot be inter-changed and shall be sterilized when the patient is discharged. Thermometers must be sterilized before each use. Hot water bags must be covered before being placed in bed and carefully checked for temperature and leakage. Electrical heating pads shall be checked at least annually by an electrician. Restraints may be applied only when they are necessary to prevent injury to the patient or to others, and shall be used only when alternative measures are not sufficient to accomplish these purposes. In applying restraints, careful consideration shall be given to the method by which they may be speedily removed in case of fire or other emergency. Oxygen apparatus either for nasal oxygen or oxygen tents, shall be provided in adequate amounts. 4. Central Supply and Sterilising In hospitals of 100 or more beds, there shall be a central supply room with adequate facilities for sterilization of supplies and equipment to be used in the hospital. In hospitals of 100 or more beds, separate sterilizer rooms shall be required for obstetrical units and surgical units. Sterilizer space shall be required in a central supply room. Rules and Regulations for Hospital Licensure in North Carolina 151a Adequate cabinets, cupboards or other suitable enclosed spaces shall be provided for keeping sterile equipment and supplies in a clean, convenient and orderly manner. All sterilization of supplies and equipment in a hospital shall be under the direct supervision of a registered nurse. 5. Service Room Utility rooms shall have adequate lighting and ventila tion. They shall be conveniently located for efficient conduct of work. A bedpan hopper shall be provided in each utility room and/or bedpan cleansing room. The bathtub, lavatory, or laundry tray shall not be used for cleaning the bedpan. C. HEATING 1. Temperature Heating plans shall be adequate to maintain a cold weather temperature of 70° F. in all rooms used by patients. D. LIGHTING 1. Artificial Each patient’s room must have artificial lighting adequate for reading and other uses needed. Every room, including storage rooms, hallways, and others shall have sufficient artificial light to make all parts clearly visible and to permit efficient performance of all necessary work. All hallways, stairways, inclines, ramps, and entrances shall be well lighted. Buies and Regulations for Hospital Licensure in North Carolina 152a Rules and Regulations for Hospital Licensure in North Carolina 2. Emergency Safe emergency lighting facilities shall be provided and distributed so as to be readily available to personnel on duty at all times. E. VENTILATION Each patient’s room will have at least one window, open ing to the outside to permit ventilation and source of nat ural light. Kitchens, bathrooms, and service rooms shall be located and ventilated by window or mechanical devices to prevent offensive odors from entering patient’s room and public halls. F. STAIRWAYS & ELEVATORS Stairways should be of a width and design which will easily accommodate removal of a patient by stretcher. Elevators and machinery shall be so constructed and maintained as to comply with the regulations of the North Carolina Insurance Commission. G. MAINTENANCE The hospital structure and component parts and facilities shall be kept in good repair and maintained with considera tion for the safety and comfort of the patient. H. SANITATION 1. Water Supply The water shall be obtained from a municipal water sup ply or a private supply system, the location, construction, 153a and operation of which will comply with the standards approved by the North Carolina State Board of Health.. The water shall be distributed to conveniently located taps and fixtures in the building. There shall be an ample supply of hot water available at all times for general use. All ice shall be washed, stored, handled, and served in a sanitary manner. Ice storage boxes, buckets and containers shall be maintained in good repair and kept clean. Buckets, containers, etc. shall be stored so as not to be subject to contamination. Ice boxes shall be covered. 2. Sewage Disposal Sewage shall be discharged into a municipal sewerage system where such a system is available; otherwise, the sewage shall be collected, treated, and disposed of in an independent sewerage system which complies with the standards approved by the State Department of Health. 3. Plumbing a. Codes All plumbing installed must be in accordance with the North Carolina Building Code. b. Cross Connections and Back Siphonage All plumbing facilities, whether for sterilization of uten sils, instruments or supplies, general water supply or waste disposals, shall be installed in such a manner as to com pletely prevent poossibility of cross connections between safe and unsafe supplies or back siphonage. Buies and Regulations for Hospital Licensure in North Carolina 154a Rules and Regulations for Hospital Licensure in North Carolina c. Facilities Toilet facilities shall be provided in reasonable ratio to the number and kind of patients cared for in the institution, and in reasonable ratio to the number of employees. 4. Garbage Disposal All garbage and trash shall be kept in suitable receptacles in such manner as not to become a nuisance. Garbage shall be removed daily and all garbage cans shall be washed at least daily and kept clean. A space for the refrigeration of garbage should be pro vided. There should be an adjacent cement floor area pro vided with a drain for washing and sterilizing the garbage cans by means of hot water and steam jets. This depart ment should obviously be accessible to the outside so that garbage can be readily removed. 5. Incineration Incineration facilities shall be provided for disposal of infected dressings, surgical, and obstetrical waste and other similar material. 6. Screens All outside doors, windows and other outside openings shall be screened against mosquitoes, flies, and other in sects. All screen doors shall open outward and be equipped with self-closing devices. 7. Handwashing There shall be adequate handwashing facilities in the institution, within or conveniently located with regard to 155a every patient’s room or patient caring service. Hand scrub bing sinks shall be provided in operating, delivery, and labor rooms, nurseries, examining and treatment rooms, and in rooms used in the isolation of patients. Handwash ing facilities must be provided for foodhandlers and other hospital employees. I. HOUSEKEEPING Housekeeping facilities and service are required to be such that comfortable and sanitary living conditions for patients and employees are maintained constantly. Ac cumulated waste material must be removed daily. There must be a frequent cleaning of the floors, walls, woodwork, and windows. The premises must be kept free from rodents and insect infestation. Bath and toilet facilities must be maintained in a clean and sanitary condition at all times. J. LINEN A supply of towels, washcloths, bath blankets, and all other linen which comes directly in contact with the patient shall be provided as needed for each individual patient. No such linen should be interchangeable from one patient to another before being properly cleaned or laundered. Bedpan covers should not be used interchangeably. K. LAUNDRY The institution shall make provision for proper cleaning of linen and other washable goods with special provision for handling contaminated linen. Rules and Regulations for Hospital Licensure in North Carolina 156a Where linen is sent to an outside laundry, it is advisable for the superintendent, or a responsible member of the staff, to visit such laundry and note facilities and methods for handling the hospital linen. General Criteria Applying to Classification of Medical Facilities Subject to Licensure by the Medical Care Commission The classification “Hospital” shall be restricted to facili ties that provide as their primary functions diagnostic services and intensive medical and nursing care in the treatment of acute stages of illness. On the basis of the specialized facilities and services available, each such hos pital will be licensed as to the following medical types: (1) general; (2) mental; (3) tuberculosis; (4) rehabilita tion, including orthopedics; (5) maternity; (6) pediatric; (7) eye, ear, nose and throat; and (8) physician’s clinic- hospital. Extenuating circumstances will be considered in continuing the classification of a facility licensed as a hos pital prior to September 1, 1960. All other medical facilities accepting patients requiring skilled nursing care that are not operated as a unit of a hospital within the above meaning shall be classified as a “ Nursing Home.” Each facility applying for licensure will be classified in accordance with the determination of the Medical Care Commission. Rules and Regulations for Hospital Licensure in North Carolina 157a SECTION VIII—TYPES OF LICENSES FOR HOSPITALS A. CLASSIFICATION OF LICENSES Each hospital license issued shall indicate thereon wheth er it is a Class I license or a Class II license or a Tem porary Conditional Hospital License in accordance with the provisions set out below: 1. Hospital License, Class 1, will be issued to new and existing hospitals that comply with the requirements of (a) the construction standards established in the State Building Code, (b) the Sanitary Regulations of the State Board of Health, and (c) the Rules and Regulations of the Medical Care Commission. 2. Hospital License, Class II, will be issued to existing hospitals that do not comply with the construction standards established in the State Building Code but have completed measures recommended by the State Insurance Department to provide to occupants a maximum of safety which can be afforded by com pliance with such recommendations, and otherwise have met the requirements of the Medical Care Com mission. 3. Temporary Conditional Hospital License will be is sued to hospitals that do not fully meet the require ments of (a) the construction standards established in the State Building Code and have not completed measures recommended by the State Insurance De partment to provide a minimum of safety, or (b) the State Board of Health, or (c) the Medical Care Commission, but which agree to correct the specific deficiencies in question within a prescribed period of time. Rules and Regulations for Hospital Licensure in North Carolina 158a Certified to be a true and correct copy of the record on file in the offices of The North Carolina Medical Care Commis sion. Date: April 24,1962 /&/ W illiam F. H enderson William F. Henderson, Executive Secretary The North Carolina Medical Care Commission December 6,1961 Transmission of License (Filed: May 4, 1962) Mr. Harold L. Bettis The Moses H. Cone Memorial Hospital Greensboro, North Carolina Dear Administrator: The Medical Care Commission is pleased to forward here with the license for your hospital for 1962. This license is renewed in compliance with Chapter 131, Article 13-A, of the General Statutes of North Carolina, and will remain in force through December 31, 1962, pending compliance with State licensing requirements. It must be conspicuously posted where patients are admitted and application for re newal of license should be made thirty days prior to the expiration date. You will note that your hospital has been issued a Class I License. This classification is issued to those hospitals which, on the basis of available information, have basically complied with the requirements of (a) the construction standards of the North Carolina Building Code, (b) the 159a Transmission of License sanitary regulations of the State Board of Health, and (c) the Buies and Regulations of the Medical Care Commission. The Commission appreciates your cooperation in furnish ing data required for the licensing program and the efforts of the hospital authorities during the past year in improving the quality of hospital service in North Carolina. Tours very truly, / s / W . 0 . L angley, J e. W. 0. Langley, Jr. Hospital Analyst WOLjr:bb Enclosure: Class I License Number 159 Type General 160a Certified to be a true and correct copy of the record on file in the offices of The North Carolina Medical Care Commis sion. Date: April 24,1962 / s / W illiam F. Henderson William F. Henderson, Executive Secretary The North Carolina Medical Care Commission November 17,1961 Mr. A. 0. Smith Administrator Wesley Long Community Hospital Greensboro, North Carolina Dear Mr. Smith: Transmitted herewith is a Class I license for the Wesley Long Community Hospital, which is issued in recognition of the completion of the new buildings that comply in full with hospital licensing standards. This license applies to the new physical plant with the understanding that the ex isting obsolete facilities will be abandoned immediately for hospital purposes. The license is to be displayed in a con spicuous place within the new building. Transmission of License (Filed: May 4, 1962) 161a Transmission of License The Commission congratulates your Board of Trustee and the community in their efforts in qualifying the new Wesley Long Community Hospital for full licensure. Tours very truly, William F. Henderson WFH :eco Enclosure: License No. 20 Class I Effective Date: November 20,1961— December 31,1962 162a A PROGRAM IN NURSING EDUCATION AT THE WOMAN’S COLLEGE, GREENSBORO, NORTH CAROLINA P rogram The Woman’s College of the University of North Caro lina offers a two year program in Nursing Education. This program of two calendar years qualifies the stu dent to become a registered nurse, entitles her to the degree of Associate in Applied Science from the Wo man’s College, and affords her all of the opportunities inherent as a University student. W here All academic work is taken at the Woman’s College campus. The major portion of the clinical work is done in the Moses H. Cone Memorial Hospital in Greens boro, N. C. Curriculum The academic program at the Woman’s College includes courses in Biology, Chemistry, English, Nursing, Physi cal Education, Psychology and Sociology. Nursing la boratory experience is in the Moses H. Cone Memorial Hospital and other health agencies. I nternship Following the second year there is a four month in ternship at the Moses H. Cone Memorial Hospital. The internship provides a nursing practicum. A salary is paid during this time. Brochure of Woman’s College (Filed: May 4, 1962) 163a Brochure of Woman’s College Degree The Nursing Education graduation exercises are held at the Woman’s College after completion of the intern ship at which time the student is granted the Degree of Associate in Applied Science. L icenstjre A student is eligible, upon satisfactory completion of the Nursing Education Program, to take the Registered Nurse Licensing Examinations. A dmission Admission requirements are the same as for other stu dents in the College (see catalogue). In addition, a personal interview with the Director of the Depart ment of Nursing Education is required. Further in formation and application forms can be obtained by writing to the Director of Admissions, Woman’s Col lege of UNC. Cost 'The over-all cost (including tuition, room, meals, etc.) is the same for all students in the College (see cata logue). Other expenses include books, uniforms, caps, shoes, etc. Scholarships and L oans Several scholarships are awarded to students in the Nursing Education Program. Funds are also available from the College Loan Fund. For specific information write to the Student Air Officer, Woman’s College of UNC. 164a Excerpt From Woman’s College Catalogue (Filed: May 4, 1962) [Page 168] # * # # # DEPARTMENT OF NURSING EDUCATION B oehket (Acting Head of the Department and Assistant Professor); Instructors Galer, Horton, K orn, Seligson. The Department of Nursing Education offers a two-year program at Woman’s College and Moses H. Cone Memorial Hospital. A six-week summer session in Psychiatric Nurs ing at John Umstead Hospital at Butner, N. C. follows the first year of academic work. The two years of academic work at the college are followed by a four-month practicum for which a salary is paid. Students are eligible to take the Registered Nurse Licensing Examination. Admission re quirements and tuition fees are the same as for all students in the college. Graduation exercises are held upon comple tion of the practicum. # * * # * 165a Motion to Intervene (Filed: May 8, 1962) The United States of America, pursuant to Title 28, Sec tion 2403, United States Code, and Eule 24 of the Federal Rules of Civil Procedure, moves to intervene as a party herein for the purpose and with all the rights provided by Title 28, Section 2403, United States Code, and by said Rule 24, on the grounds that the constitutionality of an Act of Congress, Title VI of the Public Health Service Act (42 U. S. C. 291 et seq.), affecting the public interest is drawn into question in this action and neither the United States, nor any agency thereof, nor any officer or employee thereof, as such officer or employee, is a party hereto. Annexed hereto is the Pleading of the United States in Intervention which is filed in accordance with Rule 24(c) of the Federal Rules of Civil Procedure. / s / B urke Marshall Burke Marshall Assistant Attorney General William H. Murdock United States Attorney / s / St. J ohn B arrett St. John Barrett, Attorney Department of Justice /s/ T heodore R. Newman, Jr. Theodore R. Newman, Jr., Attorney Department of Justice 166a Pleading of the United States in Intervention (Filed: May 8, 1962) The United States, as Intervenor herein, for its pleading in intervention alleges: 1. The constitutionality of an Act of Congress affecting the public interest, the Hill-Burton Act (Title VI of the Public Health Service Act, 42 U. S. C. 291 et seq., hereafter called the Act) is drawn in question in this action. 2. Except by this intervention, neither the United States of America nor any agency thereof nor any officer or em ployee thereof as such officer or employee is a party hereto. 3. The pleadings whereby the constitutionality of the Act has been drawn in question is the plaintiffs’ complaint wherein they claim that the Act deprives them, and the class they represent, of rights, privileges and immunities guaranteed by the due process and equal protection clauses of the Fourteenth Amendment and the due process clause of the Fifth Amendment. 4. The purpose of the Act is to assist the several States to inventory existing hospital and related facilities, and to survey and program for construction of additional hospital and related facilities; to assist in the construction of public and other nonprofit hospitals in accordance with the State program; and to authorize the Surgeon General to make certain grants for research, experiments and demonstra tions relating to effective utilization of hospital services, facilities and resources. 5. The Act requires that, to be eligible to participate in program of aid grants established by the Act, the State 167a must designate a single agency for carrying out the pur poses of the Act and must adopt a State Plan for construc tion of public and nonprofit hospitals, which will afford, in conjunction with existing facilities, the necessary physical facilities for furnishing adequate hospital services. 6. Section 622(f) of the Act (42 U. S. C. 291e(f)) pro vides that the Surgeon General shall, by general regula tions, prescribe: “ (f) That the State plan shall provide for adequate hos pital facilities for the people residing in a State, with out discrimination on account of race, creed, or color, and shall provide for adequate hospital facilities for persons unable to pay therefor. Such regulation may require that before approval of any application from a hospital or addition to a hospital is recommended by a State agency, assurance shall be received by the State from the applicant that (1) such hospital or ad dition to a hospital will be made available to all per sons residing in the territorial area of the applicant, without discrimination on account of race, creed or color, but an exception shall be made in cases where separate hospital facilities are provided for separate population groups, if the plan makes equitable pro vision on the basis of need for facilities and services of like quality for each such group; and (2) there will be made available in each such hospital or addition to a hospital a reasonable volume of hospital services to persons unable to pay therefor, but an exception shall be made if such a requirement is not feasible from a financial standpoint.” 7. In September 1946, the State of North Carolina, act ing through the North Carolina. Care Commission, filed Pleading of the United States in Intervention 168a with the Public Health Service an application, pursuant to the Act for federal funds to conduct a survey of existing hospital and related facilities in North Carolina, The ap plication was approved and, following an allotment of funds to the State, the North Carolina Medical Care Commission filed a state plan with the Public Health Service. This plan was approved by the Surgeon General on July 8, 1947, and, with periodic revisions, has remained in effect to the time of the filing of this pleading. 8. The State plan provides for the division of Guilford County, North Carolina into two hospital service areas, the Greensboro Hospital Service area and the High Point Hos pital service area. 9. Greensboro is one of several hospital service areas where, pursuant to the State plan as approved by the Sur geon General, separate hospital facilities are provided for separate population groups. 10. Defendant, Moses H. Cone Memorial Hospital, Inc., is a body corporated under and by virtue of the laws of North Carolina. Pursuant to its corporate charter, it has established and now maintains a State licensed hospital in Greensboro, North Carolina known as the Moses H. Cone Memorial Hospital. 11 11. Defendant, Wesley Long Community Hospital, Inc., is a body corporate under and by virtue of the laws of North Carolina. Pursuant to its corporate charter, it has estab lished and now maintains a State licensed hospital in Greensboro, North Carolina known as the Wesley Long Community Hospital. Pleading of the United States in Intervention 169a 12. Pursuant to the State plan, the Moses Cone Memo rial Hospital, submitted project application numbers NC-86, dated June 17,1950, and NC-330, dated October 28,1959, for hospital construction. 13. The North Carolina Medical Care Commission ap proved project numbers NC-86 and NC-330 and submitted them to the Surgeon General. 14. On July 11, 1950, the Surgeon General approved project NC-86 and authorized the expenditure of $462,000 as the federal ajjproved share of a total project cost of $5,277,023. 15. On March 17, 1960, the Surgeon General approved project NC-330 and authorized the expenditure of $697,950 for general hospital construction as the federal approved share of a project cost of $1,850,000 and an expenditure of $110,000 for a diagnostic and treatment center as the fed eral approved share of a total project cost of $240,000. 16. In project NC-86, as originally submitted to the Surgeon General by the Commission and as approved by him, the Commission stated that the applicant, Moses Cone Memorial Hospital, had given adequate assurances that the hospital facilities would be operated without discrim ination because of race, creed or color. In project NC-330, as submitted to the Surgeon General by the Commission and as approved by him, the Commission stated that the ap plicant, Moses Cone Memorial Hospital, had given ade quate assurance that the hospital facilities would be oper ated without discrimination because of race, creed, or color. 17. On April 15, 1960, William F. Henderson, Executive Secretary of the Commission wrote to the Public Health Pleading of the United States in Intervention 170a Service stating that project application NC-330 had in correctly stated the intention of the Moses Cone Memorial Hospital with respect to the assurances that the hospital facilities would be operated without discrimination because of race, creed, or color. By amendment submitted to the Surgeon G-eneral and approved by him on April 19,1960, the Commission and the Moses Cone Memorial Hospital with drew the non-discrimination assurance previously given. 18. Pursuant to the provisions of the State plan adopted by the North Carolina Medical Care Commission and ap proved by the Surgeon General, the Wesley Long Com munity Hospital submitted project number NC-311, dated November 18, 1958; project number NC-353, dated some times prior to January 12, 1961; and project number NC- 358, dated February 1, 1961, all for general hospital con struction. The North Carolina Medical Care Commission approved all these projects and submitted them to the Sur geon General. 19. On June 30, 1959, the Surgeon General approved project NC-311 and authorized the expenditure of $1,617,150 as the federal approved share of a total project cost of $3,240,722. On May 15,1961, the Surgeon General approved project NC-353 and authorized the expenditure of $66,000 as the federally approved share of a total project cost of $120,000. On December 15, 1961, the Surgeon General ap proved project NC-358 and authorized the expenditure of $265,650 as the federal approved share of a total project cost of $492,636. 20. The Wesley Long Community Hospital has not given assurance that it will operate its facilities without discrim ination because of race, creed or color. Pleading of the United States in Intervention 171a 21. As of the date of the filing of these pleadings, the United States has paid to the Treasurer of the State of North Carolina the sum of $1,229,552.50 on projects NC-86 and NC-330 for the Moses Cone Memorial Hospital. The facilities for which these funds were paid have been con structed and are presently being used. 22. As of the date of the filing of these pleadings, the United States has paid to the Treasurer of North Carolina the sum of $1,596,301.60 on projects NC-311 and NC-353 for the Wesley Long Community Hospital. The facilities for which these funds have been expended are still under construction as of the date of the filing of this pleading. 23. The Moses Cone Memorial Hospital has refused and is presently refusing to admit Negro patients on the same terms and conditions as white patients. 24. The Wesley Long Community Hospital has refused and is refusing to admit Negro patients on the basis of race. 25. The conduct complained of in paragraphs 23 and 24 above is authorized by the State plan described in para graph 7 above which was adopted pursuant to the Act and the regulations thereunder. 26. The conduct described in paragraphs 23 and 24 above violates the Fourteenth Amendment of the Constitution. 27. This matter involves an actual controversy which can be resolved by this Court. W herefore, the United States prays that this Court de clare that so much of Section 291e(f) of Title 42, U. S. C. as Pleading of the iUnited States in Intervention 172a authorizes the Surgeon General to prescribe regulations concerning separate hospital facilities for separate popula tion groups is unconstitutional, null and void and prays for such other relief as justice may require. / s / B urke Marshall Burke Marshall Assistant Attorney General Pleading of the United States in Intervention William H. Murdock United States Attorney / s / St. J ohn B arrett St. John Barrett, Attorney Department of Justice /s/ T heodore B. Newman, Jr. Theodore E. Newman, Jr., Attorney Department of Justice 173a (Filed May 14,1962) City of W ashington, D istrict of Columbia, s s . : Alanson W. Willcox, being duly sworn, deposes and says: I am the General Counsel of the Department of Health, Education, and Welfare, and have prepared the attached “ Note on the Public Character of Nonprofit Hospitals” for purposes of the above-entitled case. The attached note has been reviewed and approved by Dr. Jack C. Haldeman, Chief, Division of Hospital and Medical Facilities, United States Public Health Service. My present position, which I have held since January 1961, entails responsibility for all legal service to the De partment. Day-to-day legal advice to the Public Health Service is rendered by a division of this office, but I keep in personal touch with and participate in advice on major issues. From late 1956 until January 19611 was General Counsel of the American Hospital Association. In that capacity, I was in constant contact with officials of the Association who are hospital administrators, as well as with other staff per sonnel thoroughly versed in hospital matters, and I made extensive study of certain legal aspects of hospital oper ation. I attended substantially all meetings of the Associ ation’s Board of Trustees during those years, and many meetings of Association councils. My work with the Asso ciation, and the contacts it involved with informed individ uals and groups, gave me a fairly comprehensive familiarity with the structure and functioning of the hospital system of the country. Affidavit and Report of Alanson W. Willcox 174a From 1947 to 1953 I was General Counsel of the Federal Security Agency, predecessor of the present Department of Health, Education, and Welfare, with duties similar to my present duties, including responsibility for legal advice to the Public Health Service. Prior to 1947 I was an As sistant General Counsel of the Federal Security Agency, and in that capacity participated actively in drafting the Public Health Service Act of July 1, 1944 (42 U. S. C., Chap. 6A), and was the principal technical draftsman of the Hospital Survey and Construction Act (commonly known as the Hill-Burton Act) of August 13, 1946, which became Title VI of the Public Health Service Act (42 U. S. C., Chap. 6A, Subchap. IV). A lanson W . W illcox General Counsel Affidavit and Report of Alanson W. Willcox Sworn to before me on this 10th day of May, 1962. Albert C. A llen Notary Public My comm. exp. 10-31-66 ( S e a l ) 175a NOTE ON THE PUBLIC CHARACTER OF NONPROFIT HOSPITALS The hospital system of the country is divided, in terms of ownership and control, into three segments: govern mental private nonprofit (the so-called “voluntary” hos pitals), and proprietary. The American Hospital Associ ation listing for 1960 shows nonfederal short-term general (and “other special” *) hospitals divided as follows: Affidavit and Report of Alanson W. Willcox Institutions Beds Governmental (Listed (Accredited** 1,260 524 156.000 121.000 Private nonprofit (Listed (Accredited 3,291 2,276 446.000 403.000 Proprietary (Listed (Accredited 856 154 37.000 14.000 Governmental hospitals are for the most part owned by counties, municipalities, or in some States hospital districts. Except for State university hospitals, State institutions are generally confined to mental, tuberculosis or other spe cialized hospitals. County and municipal hospitals include some, mostly in the larger cities, that are operated exclu sively or primarily for indigents who are expected to pay little or nothing for their care. Most governmental general hospitals, however, operate in much the same fashion as private nonprofit institutions, described below. These gov ernmental institutions serve as general community hospi- * E.g., pediatric hospitals and maternity hospitals. Figures do not include psychiatric hospitals. See, H ospitals, Journal o f the Am erican H ospital A sso ciation (Aug. 1, 1961, part 2, page 428). ** By the Joint Commission on the Accreditation of Hospitals. 176a tals, accept paying patients, and grant staff privileges to local physicians who bill their patients as private practi tioners. These hospitals differ little from private nonprofit hospitals except in the manner of selection of the govern ing boards, and sometimes in having a call upon tax funds to meet deficits. The nonprofit community hospital was originally, and still is in the older parts of the country, the backbone of our general hospital system. The older hospitals were or ganized, frequently under religious auspices, primarily as institutions for care of the sick poor. With the tremendous growth of curative medicine in the last forty years and its increasing concentration in the hospital, these older institu tions, and their modern counterparts both public and non profit, have become centers for the care of the entire popu lation, and thus centers for the practice of medicine in its treatment of the seriously ill. Not only does the hospital provide the attending physician with expert nursing care of his patient, but it supplies also a wide range of ancillary services and facilities. Operating and delivery rooms and at least minimal laboratory and X-ray services are found in all community general hospitals; the larger and better hospitals place a great and ever-growing complex of pro fessional, subprofessional and technical services at the dis posal of the clinician. Typically the hospital employs or contracts with medical specialists to head pathology, radi ology, and sometimes other departments; but typically the care of the individual patient is the responsibility of a pri vate practitioner who enjoys staff privileges but has no financial relationship with the hospital. Staff privileges, classified and sometimes graduated in accordance with the qualifications of the individual physi cian, are granted by the governing board on reeommenda- Affidavit and Report of Alanson W. Willcox 177a tion of the medical staff or a staff committee. Membership on a hospital staff has become essential to the practice of many branches of medicine, and the interchange it provides is also an important element in the continuing professional education of the practitioner. The organized medical staff of a hospital, and its committees that review the work of individual practitioners, constitute for most physicians the single exception to the individualistic pattern of practice which has been traditional in the medical profession. The larger hospitals, both governmental and nonprofit, perform substantial educational functions, most notably in graduate medical education and in the training of profes sional nurses. These teaching hospitals are generally re garded as providing, by and large, the highest quality of care. A hospital internship has become an almost universal prerequisite to medical practice, and a residency is essential to qualification as a specialist. Eighty-five per cent of the registered nurses of the country are produced by hospital schools of nursing. Some hospitals also train practical nurses, laboratory technicians, and a number of other para medical groups. Although student services are availed of by the hospitals in varying degree, these educational activities incur substantial net deficits which are generally recouped by charging paying patients somewhat more than the im mediate cost of services to them. Nonprofit hospitals are controlled by governing boards which usually either are self-perpetuating or are selected by religious bodies with which hospitals are affiliated. The hospitals and their property are widely exempted from taxation. For purposes of the Federal income tax, includ ing deductibility of gifts to them, they are classified as charitable institutions. States and localities almost uni versally exempt these hospitals from real estate taxes, Affidavit and Report of Alanson W. Willcox 178a either as charities or by more specific provision. They enjoy also many exemptions from excise and other forms of tax. By contrast with public and nonprofit community hos pitals, proprietary hospitals are essentially business under takings, commonly owned and operated by members of the medical profession. Although there are conspicuous excep tions, most of them are relatively small; most of them as sume no general community responsibility, and feel rela tively free to turn away patients who cannot pay; most of them undertake no teaching activities. They are of course not generally exempt from taxes. As noted above, rela tively few of them are accredited. By the mid-1940’s the accumulated deficit of hospital con struction resulting from the depression and the war, and the increasing essentiality of hospitals to medical care, pre sented a critical situation. This was especially true in the smaller cities and rural areas, where it was becoming ex tremely difficult to attract physicians because of lack of hospital facilities. The Hill-Burton Program (Title VI of the Public Health Services Act) was the result. The Act required that States wishing to participate should first inventory their existing facilities, and develop Statewide plans for such additional facilities—governmental or nonprofit—as would provide adequate service for all the people of the State. This re quirement of Statewide plans was an important innovation, bringing a measure of order into what had theretofore been determined by the accident of individual local deci sions. The State plans were to be revised from time to time to reflect population changes and other factors, such as construction carried on independently of the Hill-Burton Affidavit and Report of Alanson W. Willcox 179a program (which has, in fact, roughly equaled in volume the construction aided by the program). Although State construction programs were required to establish priorities in accordance with Federal standards based primarily on the relative shortage of facilities, in some other respects the States were left a free hand, in selecting the projects to be aided. Specifically, as between a public and a nonprofit project in a given community, or as between competing nonprofit projects, the State was made the arbiter; in those States that provided racially separate facilities, the option to approve “ separate but equal” hospitals for Federal aid was left to the State. To summarize: 1. Community hospitals have become essential, both to provide hospital service to the people of the community and to enable its physicians to practice good medicine . 2. The functions of such hospitals can be, and are, per formed equally well by governmental and by private non profit institutions. Not only do the two kinds of institu tions perform the same community functions, but they do so in the same way and with the same relationships to their patients and to the practicing profession. They enjoy substantially the same freedom from taxation, and often the same or similar support from public funds. Such dif ferences as there may be in the make-up of the governing boards or in the financial structure are usually all but in visible to patients or to physicians. 3. The Hill-Burton Act recognizes the interchangeability of public and nonprofit community hospitals and aids the two on the same terms, leaving the choice in each individual case to the community and the State. The State plan must be addressed to the provision of adequate facilities for all Affidavit and Report of Alanson W. Willcox 180a Affidavit and Report of Alanson W. Willcox of the people of the State, but effectuation of the plan may be through any combination of public and nonprofit in stitutions. Each institution must be open to all people of the community unless the State elects to approve “ separate but equal” facilities for separate groups. 181a (Filed: June 8, 1962) Naomi W . W ynn being duly sworn, says: (1) That she is the Dean of the School of Nursing of the Agricultural & Technical College of North Carolina, and has held that position since August, 1957; (2) That the Agricultural & Technical College of North Carolina has been permitted to use the facilities of The Moses H. Cone Memorial Hospital, in Greensboro, North Carolina, to provide clinical experience for its nursing stu dents since 1954; that the arrangement between the College and the Hospital was originally made, and is continued from year to year, at the request of the College and upon the voluntary approval of the Board of Trustees of the Hospital; that the sole objective of the program is to foster student learning, and that under the program, the Hospital simply serves as a laboratory in which this learning may be facilitated; and that no fees are charged the College by the Hospital for the use of its facilities, but that the arrangement is simply a privilege voluntarily granted to the College by the Hospital; (3) That the entire nursing program at the Agricultural & Technical College of North Carolina, in all of its facets, is planned, controlled, and supervised by the College, and the Hospital merely permits the College to use its facilities in furtherance of the program; that while the student nurses engaged in the program are in the Hospital, they are under the direct supervision and control of the College faculty, and not of the Hospital; that the entire program is planned by the College as a learning experience; that no replacement of any personnel on the service staff of the Affidavit of Naomi W. Wynn 182a Hospital by the student nurses engaged in the College nursing program is intended, and no such replacement oc curs; and that the students are in the Hospital to learn, and not to serve, and they do not render valuable services to the Hospital for which the Hospital would otherwise pay substantial sums; (4) That the School of Nursing of the Agricultural & Technical College of North Carolina uses many other facili ties, both public and private, in the same way in which it uses the facilities of The Moses H. Cone Memorial Hos pital, and to provide the same sort of laboratory training or clinical experience which the College deems essential to the educational process in the School of Nursing; (5) That she has read the affidavit of Barbara Wise, senior nursing student at the Agricultural & Technical College of North Carolina, heretofore filed in this action; that the “ typical training day at The Moses H. Cone Memorial Hospital” outlined by Miss Wise may be typical of those days actually spent by the student nurses from the College in their planned learning experiences at the Hospital, but that a senior nursing student at the College would not normally spend more than eight weeks at Cone Hospital in such clinical experience during her senior year, and would spend even less time in such experience at Cone Hospital during the earlier years of her program; that the student nurse would also spend similar periods in planned learning experiences at other institutions and agencies, both public and private, and in Greensboro and out of town; and that Miss WTise has neglected to emphasize the fact that everything a student nurse from the College does during her clinical experience at the Cone Hospital is planned, assigned, supervised, and evaluated by her College instruc- Affidavit of Naomi W. Wynn 183a tor, and that she is graded on her performance by her instructor as a part of her College grade. This the 30th day of May, 1962. Affidavit of Naomi W. Wynn Naomi W . W ynn Subscribed and sworn to before me this 30th day of May, 1962. Madge S. Qmohtjndro Notary Public My commission expires Nov. 27, 1962. (Seal) 184a (Filed: June 8, 1962) A lice C. B oehret, being duly sworn, says: (1) That she is the Head of the Department of Nursing Education at the Woman’s College of the University of North Carolina, with the rank of Assistant Professor; that she has been in the Department of Nursing Education since it was established in 1957, and was the first instructor assigned to the Department; and that she became Acting Head of the Department in 1960, and Head of the Depart ment in 1961; (2) That the Department of Nursing Education of the College has been permitted to use the facilities of The Moses H. Cone Memorial Hospital, in Greensboro, North Carolina, to provide clinical experience for its nursing students since September, 1957; that the Hospital has voluntarily made its facilities available to the College for this purpose with out charge; and that the entire program of nursing educa tion at the College is planned, controlled, and supervised by the College, and Cone Hospital merely permits the Col lege to use its facilities in furtherance of this educational program of the College; (3) That while the student nurses engaged in the nursing educational program of the College are in Cone Hospital, they are under the direct supervision and control of the College faculty, and not of the Hospital, and the College faculty is charged with the responsibility for their super vision ; that the College determines the number of students who shall be sent to the Hospital, and the hours they shall devote to clinical experience in the Hospital; that the stu dent nurses engaged in the nursing educational program Affidavit of Alice C. Boehret 185a of the College do not replace any personnel on the service staff of the Hospital; and that the student nurses from the Woman’s College do not render valuable services to Cone Hospital for which the Hospital would otherwise pay substantial sums. This the 1 day of June, 1962. A lice C. B oehbet Affidavit of Alice C. Boehret Subscribed and sworn to before me this 1st day of June, 1962. Madge S. Omohttndro Notary Public My commission expires Nov. 27, 1962. (Seal) 186a Notice A ffidavit in R eply to Opposition to Plaintiffs’ Motions Plaintiffs hereby attach, as Plaintiffs’ Exhibit P, the affidavit of George C. Simkins, Jr., in reply to defendants’ opposition to plaintiffs’ Motions for Summary Judgment and Preliminary Injunction and in further opposition and reply to defendants’ Motion to Dismiss. Respectfully submitted, Jack Greenbekg James M. Nabrit, III Michael Meltsneb 10 Columbus Circle New York 19, New York CONBAD 0 . PEABSON 203% East Chapel Hill Street Durham, North Carolina Attorneys for Plaintiffs 187a Affidavit of George C. Simkins, Jr. (Filed: June 15, 1962) North Carolina Guilford County I, George C. Simkins Jr., am a licensed dentist, and have been practicing dentistry in Greensboro, North Carolina since August 1949. My patient, Donald R. Lyons, has an impacted lower third molar that he wished removed at a hospital where the best dental facilities are available. In this area the only dental facilities available are at the Wesley Long Community Hospital and the Moses Cone Memorial Hos pital. Both hospitals have dental X-rays and dental chairs. The Wesley Long Hospital also has a Weber dental unit with a light and a dental handpiece. The L. Richardson Hospital which admits Negro patients has no dental facilities available whatsoever. It is very necessary that an X-ray be available before attempting to remove an impacted third molar. L. Richard son Memorial Hospital has no dental X-ray or dental chair. George C. Simkins J r. Affiant Subscribed and sworn to before me this 13th day of June 1962. Gladys K. Minor Notary Public My Commission expires: October 8, 1962 188a Order Allowing Intervention (Filed: June 26, 1962) The motion of the United States to intervene, having regularly come on for hearing this day, the Court having heard argument of counsel, and the Court being of the opinion that the complaint in this case draws into question the constitutionality of a portion of Section 291e(f) of Title 42 of the United States Code, which is an Act of Congress affecting the public interest, It is Obdebed that the motion of the United States be granted and the United States is allowed to intervene as a party to the extent necessary for a proper presentation of the facts and law relating to the constitutionality of the statute above referred to. With reference to motions now pending before the Court, the United States will be heard, within the limitations just mentioned, on the plaintiff’s motion for summary judgment. This the 26th day of July, 1962. / s / E dwin M. Stanley United States District Judge Approved as to form : Attorney for Moses H. Cone Memorial Hospital and Harold Bettis Attorney for Wesley Long Community Hospital and A. 0. Smith 189a Motion for Summary Judgment (Filed: August 9, 1962) The United States moves the Court for summary judg ment upon its pleading in intervention and for an order: (1) Declaring unconstitutional, null and void, such part of the language of Section 291e(f) as reads “but an ex ception shall be made in cases where separate hospital facilities are provided for separate population groups, if the plan makes equitable provision on the basis of need for facilities and services of like quality for each such group”, and (2) Enjoining Moses H. Cone Memorial Hospital, Wesley Long Community Hospital, Harold Bettis and A. 0. Smith from discriminating, on account of race and color, in the admission of patients to the two named hospitals. This motion is based upon all of the pleadings, affidavits, and other documents heretofore filed by all of the parties to this action. United States oe A mebica, Intervenor, By: W illiam H. M'tjkdock United States Attorney St. J ohn B aebett, Attorney Department of Justice H owabd A. Glickstein, Attorney Department of Justice 190a Stipulation Between Intervenor and Defendants Moses H. Cone Memorial Hospital and Harold Bettis (Filed: August 10, 1962) It is stipulated between the United States, Intervenor herein, and the Moses II. Cone Memorial Hospital and Harold Bettis, defendants herein, that the Motion to Dis miss which the said defendants filed on April 2, 1962, may be considered by the Court as directed against the pleading- in intervention as well as against the complaint of the plaintiffs. It is further stipulated that the Court may decide the motion for summary judgment filed by the United States, Intervenor, and the Motion to Dismiss as directed against the pleading in intervention upon the basis of the record now before the Court. Signed, on behalf of the United States, Intervenor, this 2nd day of July, 1962: St. J ohn B aeeett, Attorney Department of Justice Signed, on behalf of the defendants Moses H. Cone Me morial Hospital and Harold Bettis, this .............. day of July, 1962: 191a Stipulation Between Intervenor and Defendants Wesley Long Community Hospital and A. 0 . Smith (Filed: August 10, 1962) It is stipulated between the United States, Intervenor herein, and the Wesley Long Community Hospital and A. 0. Smith, defendants herein, that the Motion to Dismiss which the said defendants filed on April 2, 1962, may be considered by the Court as directed against the pleading in intervention as well as against the complaint of the plain tiffs. It is further stipulated that the Court may decide the motion for summary judgment filed by the United States, Intervenor, and the Motion to Dismiss as directed against the pleading in intervention upon the basis of the record now before the Court. Signed, on behalf of the United States, Intervenor, this 2nd day of July, 1962: St. J ohn Babbett, Attorney Department of Justice Signed, on behalf of the defendants Wesley Long Com munity Hospital and A. 0. Smith, this .............. day of July, 1962: 192a Order Denying Preliminary Injunction (Filed: August 12, 1962) The Court, having duly considered the plaintiffs’ Motion for Preliminary Injunction and documents in support there of, and the defendants’ Response to said Motion and docu ments in support thereof, and having heard the arguments of counsel; And the Court having stated that it would decide the pending Motions to Dismiss by the defendants and the Mo tion for Summary Judgment by the plaintiffs during Au gust 1962; And the Court being of the opinion and finding that the granting of a preliminary injunction as requested is not now clearly demanded under the circumstances, and that the injunction is not required pending the determination of the aforesaid Motions; It is Obdered that the plaintiffs’ Motion for Preliminary Injunction be and the same is hereby denied. This the day of July, 1962. / s / E dwin M. Stanley United States District Judge Consented to as to form: /s / J ames M. Nabrit, III Of Counsel for the Plaintiffs. 193a Reporter’s Transcript (August 13, 1962) H eabing on Motions The matter of Defendants Motion to Dismiss, Plaintiff’s Motion for Preliminary Injunction, Plaintiffs’ Motion for Summary Judgment, and U. S. Attorney’s Motion to Inter vene, came on before the Court in the U. S. Courtroom, Post Office Building, Greensboro, N. C., on Tuesday, June 26, 1962, by and before Judge Edwin M. Stanley, at which time and place C. 0. Pearson, Esquire, Michael Meltsner, Esquire, James Nabrit, Esquire, and J. Kenneth Lee, Es quire, appeared for the Plaintiff, and Herbert S. Falk, Esquire, Thornton II. Brooks, Esquire, and Charles E. Both, Esquire, appeared for the Defendants; and St. John Bar rett, Esquire, and Howard A. Glickstein, Esquire, Depart ment of Justice, Civil Eights Division, appeared for the II. S. Government. Not later than July 20, the Plaintiffs and the Defendants will file Requests for Findings of Fact and Conclusions of Law, and any additional briefs either side desires to file. The United States will collaborate with Counsel for the Plaintiff in filing the Plaintiff’s Bequest for Findings of Fact and Conclusions of Law; the Findings of Fact and Conclusions of Law filed by the Plaintiff will embody all of the ideas of the Attorney General. At the time the original Bequests for Findings of Fact and Conclusions of Law are filed with the Court, a copy shall be served on opposing counsel. Not later than July 31st, Counsel shall file with the Court any objections to Bequest for Findings of Fact and Conclu sions of Law filed by opposing counsel, and the specific basis for the objection. However, before filing the objections, 194a Reporter’s Transcript Counsel shall confer in a good faith effort to resolve any difference of opinion with respect to a particular finding, and make a good faith effort to agree on any fact that is in dispute. If any party desires to file any further brief, or cite any other case, in support of any contention, they may do so at the time the Requests for Findings of Fact and Conclu sions of Law are filed on July 31st. The matter will then be submitted to the Court for decision on Defendants Motion to Dismiss and the Plaintiffs Motion for Summary Judg ment without further argument unless the Court requests argument. I, Arthur M. Jordan, Jr., Official Reporter of the District Court for the Middle District of North Carolina, do hereby certify that the foregoing is a true transcript from my notes of the entries made in the above-entitled Case No. C-57-G-62, before and by Judge Edwin M. Stanley, on June 26, 1962, in Greensboro, N. C.; and I do hereby further certify that a copy of this transcript was mailed to each of the above- named attorneys on July 11,1962. Given under my hand this 11th day of July, 1962. Official Reporter 195a (Filed: December 5, 1962) Stanley, Chief Judge: Plaintiffs, Negro citizens, suing on behalf of themselves and other Negro physicians, dentists and patients similarly situated, seek injunctive and declaratory relief, alleging that the defendants have discriminated against them be cause of their race, in violation of the Fifth and Fourteenth Amendments to the United States Constitution. The relief sought is an injunction restraining the defendants from continuing to deny the admission of physicians and dentists to hospital staff privileges, and the admission of patients to hospital facilities, on the basis of race. Plaintiffs also seek a declaratory judgment that Section 291(e) (f) of Title 42, United States Code, and .Regulation 53.112 of the Public Health Service Regulations, issued pursuant there to, are unconstitutional and void as violative of the Fifth and Fourteenth Amendments to the United States Con stitution for the reason that said provisions provide for the construction of hospital facilities, and the promotion of hospital services, on a racially segregated basis. Sinee the constitutionality of an Act of Congress affecting the public interest had been drawn into the question, the United States, pursuant to 28 USC § 2403 and Rule 24(a) of the Federal Rules of Civil Procedure, moved to file a pleading in inter vention. The complaint was filed on February 12, 1962. On April 2, 1962, the defendants moved to dismiss the action for lack of jurisdiction of the subject matter for the reason that the plaintiffs were seeking redress for the alleged invasion of their civil rights by private corporations and Findings of Fact, Conclusions of Law and Opinion 196a individuals. On May 4, 1962, the plaintiffs moved for sum mary judgment and a preliminary injunction. On May 8, 1962, the United States moved to intervene. On June 26, 1962, the Court held a full hearing on all pending motions, at the conclusion of which an order was entered granting the motion of the United States to intervene. On July 12, 1962, an order was entered denying plaintiffs’ motion for a preliminary injunction, the Court being of the opinion that the injunction was not required pending the final determi nation of the action on the plaintiffs’ motion for summary judgment and the defendants’ motion to dismiss. At the hearing conducted on pending motions, the parties conceded that there was no dispute as to any material fact, and the defendants conceded that if, on the basis of the pleadings, exhibits, affidavits and admissions filed, it should be determined that the defendant hospitals were instru mentalities of the State, the plaintiffs were entitled to the injunctive relief sought. On the other hand, the plaintiffs conceded that if the defendant hospitals were not shown to be instrumentalities of the State, the Court lacked juris diction and the action should be dismissed. At the conclusion of the hearing conducted on June 26, 1962, the Court gave the parties a specified time within which to file proposed findings of fact, conclusions of law, and briefs. The requests of the parties for findings of fact, conclusions of law, and briefs having been received, the Court, after considering the pleadings and evidence, includ ing exhibits, affidavits and admissions filed, and briefs and oral arguments of the parties, and finding no dispute as to any material fact, now makes and files herein its Find ings of Fact and Conclusions of Law, separately stated: Findings of Fact, Conclusions of Law and Opinion 197a Findings of Fact, Conclusions of Law and Opinion F indings op F act 1. The plaintiffs, A. V. Blount, Jr., Walter J. Hughes, Norman N. Jones, Girardeau Alexander, E. C. Noel, III, and F. E. Davis, are medical doctors licensed to practice and practicing medicine in the City of Greensboro, North Carolina. The plaintiffs, George C. Simkins, Jr., Milton Barnes and W. L. T. Miller, are dentists licensed to practice and practicing dentistry in the City of Greensboro, North Carolina. These plaintiffs, all citizens and residents of the United States and the State of North Carolina, residing in the City of Greensboro, North Carolina, seek admission to staff facilities at The Moses H. Cone Memorial Hospital and the Wesley Long Community Hospital without dis crimination on the basis of race. 2. The plaintiffs, A. J. Taylor and Donald R. Lyons, are citizens and residents of the City of Greensboro, North Carolina, and are patients of some of the physicians and dentists referred to in the preceding paragraph. These plaintiffs desire admission to the defendant hospitals for the treatment of their illness, and to be treated by their present physician or dentist, without discrimination on the basis of race. 3. The defendants, The Moses H. Cone Memorial Hos pital (hereinafter sometimes referred to as “ Cone Hos pital” ), and Wesley Long Community Hospital (herein after sometimes referred to as “Wesley Long Hospital” ), are North Carolina corporations, and each has established, owns, and maintains a general hospital in the City of Greensboro, North Carolina. Both hospitals are non-profit, tax-exempt and State licensed. The defendant, Harold Bettis, is the Director of Cone Hospital, and the defendant, 198a A. 0. Smith, is the Administrator of Wesley Long Hospital. Prior to the institution of this action, the plaintiff physicians and dentists were denied staff appointments to Cone Hos pital, and were denied forms for use in making applications for admission to the staff of Wesley Long Hospital. As a matter of policy, neither hospital grants staff privileges to Negro physicians or dentists. 4. Negro patients are admitted to Cone Hospital on a limited basis, and on terms and conditions different from the admission of white patients. Wesley Long Hospital denies admission to all Negro patients. By the policy of excluding Negro physicians and dentists, Negro patients admitted to Cone Hospital are denied the privilege of being treated by their own physicians and dentists. 5. Cone Hospital was originally incorporated as a private corporation under the general corporation laws of the State of North Carolina, under the name of The Moses H. Cone Memorial Hospital, Incorporated, pursuant to Articles of Incorporation which were filed in the office of the Secretary of State of the State of North Carolina on May 29, 1911. There were ten original incorporators, all of whom were private citizens, and four of whom were members of the Cone family, and these ten incorporators were named as the first Board of Trustees of the corpora tion. The original Articles of Incorporation stated the intention of applying for a legislative charter in order that the corporation might be permitted to drop the word “In corporated” from its name, and to provide for a Board of Trustees “with perpetual succession.” The legislative charter of the corporation was enacted as Chapter 400 of the Private Laws of North Carolina, Session of 1913. This Findings of Fact, Conclusions of Law and Opinion 199a Private Act “fully ratified, approved, and confirmed” the original Articles of Incorporation, and provided that, in carrying out its corporate purposes, the corporation should continue to “have and enjoy all the powers and privileges conferred by the general corporation law of this State upon corporations of like character,” but that it should not become effective as the act of incorporation unless and until it was accepted as such by the original incorporators of the corporation. The charter provided for a Board of Trustees of fifteen members, three to be appointed by the Governor of North Carolina, one by the City Council of the City of Greensboro, one by the Board of Commissioners of the County of Guilford, one by the Guilford County Medical Society, one by the Board of Commissioners of the County of Watauga, and that Mrs. Bertha L. Cone, who was the founder and the principal benefactor of the cor poration, should have the power to appoint the remaining eight members so long as she might live. It was further provided that, after the death of Mrs. Bertha L. Cone, or earlier if she should renounce her right to appoint, the eight trustees originally appointed by her should perpetuate themselves by the election of the Board of Trustees. Mrs. Bertha L. Cone died in 1947, and the charter of the cor poration was amended in 1961 to eliminate the appoint ment of one trustee by the Board of Commissioners of the County of Watauga. The charter now provides, and has provided at all times pertinent to this action, that the eight trustees originally appointed by Mrs. Bertha L. Cone, and the one trustee originally appointed by the Board of Com missioners of the County of Watauga, or a total of nine members of the fifteen-member Board, are to be perpetuated through the election of the Board of Trustees. The trustees appointed by public officials or agencies have always been a minority of the trustees of the corporation. Findings of Fact, Conclusions of Law and Opinion 200a 6. The Cone Hospital owns, and has owned since 1911, the fee simple title to the real property on which its hospital is located. Its Board of Trustees has the exclusive power and control over all real and personal property of the corporation, and all the institutional services and activities of the hospital. 7. The Wesley Long Hospital is a “non-profit and charita ble corporation” with no capital stock. The corporation was formed many years ago under the laws of the State of North Carolina to conduct, without profit and for chari table and humane purposes, a general hospital in the City of Greensboro, North Carolina. The title to all of its prop erty, both real and personal, is vested in the corporation. The charter of the corporation makes the Board of Trus tees, consisting of twelve members, and all citizens of the City of Greensboro, a self-perpetuating body. The Board of Trustees has the exclusive power and control over all real and personal property of the corporation, and all the institutional services and activities of the hospital. 8. Both Cone Hospital and Wesley Long Hospital are exempt from ad valorem taxes assessed by the City of Greensboro and the County of Guilford, North Carolina. For the fiscal year 1961-1962, the City tax rate was $1.27 per $100.00 valuation, and the County tax rate was $0.82 per $100.00 valuation. 9. Both defendant hospitals are licensed by the State of North Carolina, and have complied with the licensing procedures and standards set out by the North Carolina Hospital Licensing Act1 and the rules and regulations of Findings of Fact, Conclusions of Law and Opinion 1 Sections 131-126.1 through 131-126.17, General Statutes of North Carolina. 201a the North Carolina Medical Care Commission,2 These statutes require every hospital in the State of North Caro lina, public or private, profit or non-profit, to be licensed to operate by the Medical Care Commission. 10. Both defendant hospitals are parts of a joint United States-North Carolina program of providing grants of United States funds under the Hill-Burton Act,3 and both have received funds under the Act in aid of their construc tion and expansion programs. The North Carolina State Plan, as approved by the Surgeon General of the United States under the Hill-Burton Act, has programed sepa rate hospital facilities for separate population groups in the Greensboro area, and the Hill-Burton funds for the two defendant hospitals were allocated and granted to, and were accepted by, said hospitals with the express written understanding that admission of patients to the pro posed facilities might be denied because of race, creed or color. 11. Project Application NC-86 of the Cone Hospital re- . veals that for general hospital construction totaling $5,277,- 023.32, the Federal Government contributed $462,000.00. On February 4, 1954, Cone Hospital approved an agreement for this project. On April 12, 1954, the North Carolina Medical Care Commission approved the agreement. On April 15, 1954, the Surgeon General of the United States, acting through the Regional Medical Director of the Public Health Service, approved the agreement. This application states that Cone Hospital had given adequate assurance Findings of Fact, Conclusions of Law and Opinion 2 Sections 131-117 through 131-126, General Statutes of North Carolina. 3 42 USC $291, et seq. 202a that the facility would be operated without discrimination because of race, creed or color. However, in a subsequent project application (NC-330), it is revealed that Cone Hos pital had erroneously represented that the facilities of the hospital would be operated without discrimination. After an exchange of correspondence, Project Applications NC- 86 and NC-330 were amended, with the approval of the North Carolina Medical Care Commission and the Surgeon General, to permit a waiver of the non-discrimination as surance. 12. Project Application NC-330 granted Cone Hospital $807,950.00 for the construction of a diagnostic and treat ment center and a general hospital addition. The total cost of these facilities was $2,090,000.00. The contract under which the funds were allocated was approved by Cone Hospital on March 14, 1960, by the North Carolina Medical Care Commission on March 14, 1960, and by the Surgeon General on March 17, 1960. It was represented in the approved application that “ the requirement of non discrimination has been met because this is an area where separate hospital facilities are provided for separate popu lation groups . . . ” 13. Project Application NC-311 granted $1,617,150.00 in federal funds to Wesley Long Hospital for new hospital construction. The total estimated construction funds re quired were $3,314,749.40. The original agreement under which these funds were allocated was approved by Wesley Long Hospital on June 23, 1959, by the North Carolina Medical Care Commission on June 24, 1959, and by the Surgeon General on June 30, 1959. Findings of Fact, Conclusions of Law and Opinion 203a 14. Project Application NC-353 granted $66,000.00 to Wesley Long Hospital for the construction of a laundry. The total estimated funds required to complete the project were $120,000.00. The original agreement under which these funds were allocated was approved by Wesley Long Hos pital on April 27, 1961, by the North Carolina Medical Care Commission on April 28, 1961, and by the Surgeon General on May 15, 1961. 15. Project Application NC-358 granted $265,650.00 to Wesley Long Hospital for the construction of a hospital Nurses Training School. The total estimated funds to com plete the project were $492,636.00. The contract under which these funds were allocated was approved by Wesley Long Hospital on December 7, 1961, by the North Carolina Medical Care Commission on December 8, 1961, and by the Surgeon General on December 15, 1961. 16. The aforementioned project applications of Wesley Long Hospital contained a certification that “ the require ment of non-discrimination has been met because this is an area where separate facilities are provided for separate population groups and the State Plan makes otherwise equitable provision, on the basis of need, for facilities and services of like quality for each such population group in the area.” 17. As of the date of the filing of this action, the United States had appropriated $1,269,950.00 for Cone Hospital, and the sum of $1,948,800.00 for Wesley Long Hospital. The entire appropriation of $1,269,950.00 had been paid to Cone Hospital, and $1,596,301.60 had been paid to the Wesley Long Hospital, through the Treasurer of the State of North Carolina, as of May 8, 1962. The funds appropri- Findings of Fact, Conclusions of Law and Opinion 204a ated to Cone Hospital amounted to approximately 15% of its total construction expense, and the funds appropri ated to the Wesley Long Hospital amounted to approxi mately 50% of its total construction expenses. 18. Plans and specifications submitted by the defendant hospitals for each project were required to conform to Subpart M of the Public Health Service Regulations, which sets forth detailed standards for hospital construction and equipment. These standards constitute minimum require ments for construction and equipment considered necessary to insure properly planned and well constructed facilities which can be maintained and efficiently operated to furnish adequate service. 19. The Agricultural and Technical College of North Carolina, since 1954, and The Woman’s College of the University of North Carolina, since 1957, both tax-sup- ported State institutions of higher education, have been permitted to use the facilities of the Cone Hospital to provide clinical experience for their nursing students. The nursing students carry out assignments at the hospital under the supervision and direction of their own teachers, and not of the hospital staff. The hospital subsidizes the meals and laundry service of the students, and provides conference and instructional rooms for their use without charge. Cone Hospital has incurred direct costs of $3,337.59 in connection with the Agricultural and Technical College program since 1954, and has paid these costs from its own funds. The hospital has made direct contributions of $131,- 835.13 from its own funds to the nursing program of Wom en’s College since 1957, and has made a commitment of an additional $25,000.00. The hospital has also provided Findings of Fact, Conclusions of Law and Opinion 205a scholarship loans in the additional amount of $10,500.00 for student nurses at Woman’s College, which scholarship loans are administered entirely by the college, and not by the hospital, and are available only to nursing students selected by the college. The student nurses do not replace any personnel on the service staff of Cone Hospital, and the hospital has never been relieved of any of its personnel requirements through the use of student nurses. The prin cipal benefit to Cone Hospital from the operation of the student program is the intangible benefit to be derived from the creation of sources of well-trained nurses. The hospital, however, has no priority to employ any nurses graduating from either college, and must compete for the services of these graduates with other interested hospitals and employers. The monetary value of the services ren dered the hospital by the student nurses is not commen surate with the substantial contributions the hospital has made of both its funds and facilities to the furtherance of the nursing educational programs. D iscussion It has been clearly established that both defendant hos pitals are pursing racially discriminatory practices by bar ring Negro physicians and dentists from admission to their staff privileges, and by barring Negro patients from ad mission to their treatment facilities on the same terms and conditions as white patients. The defendants do not contend otherwise, and their defense has been confined to a showing that neither hospital is a governmental instru mentality, and that any discriminatory practices constitute private conduct which is not inhibited by the Constitution of the United States. This is the basis of the motion of the defendants to dismiss for lack of jurisdiction. Findings of Fact, Conclusions of Law and Opinion 206a Since the Civil Bights Cases, 109 U. S. 3, 27 L. Ed. 835, 3 S. Ct. 18 (1883), it has been firmly established that the inhibitions of the Fifth and Fourteenth Amendments to the Constitution relate solely to governmental action, state or federal, and that neither amendment applies to acts by private persons or corporations. In Shelley v. Kraemer, 334 IT. S. 1, 13, 92 L. Ed. 1161, 68 S. Ct. 836 (1948), the Supreme Court stated: “ Since the decision of this Court in the Civil Bights Cases, 109 U. S. 3 (1883), the principle has become firmly embedded in our constitutional law that the action inhibited by the first section of the Fourteenth Amendment is only such action as may fairly be said to be that of the States. That Amendment erects no shield against merely private conduct, however dis criminatory or wrongful.” To the same effect is Burton v. Wilmington Parking Authority, 365 U. S. 715, 722, 6 L. Ed. 2d 45, 81 S. Ct. 856 (1961), where it is stated: “It is clear, as it always has been since the Civil Bights Cases, supra, that ‘Individual invasion of indi vidual rights is not the subject-matter of the amend ment,’ at p. 11, and that private conduct abridging individual rights does no violence to the Equal Pro tection Clause unless to some significant extent the State in any of its manifestations has been found to have become involved in it.” In light of the foregoing, the sole question for deter mination is whether the defendants have been shown to be so impressed with a public interest as to render them instru- Findings of Fact, Conclusions of Law and Opinion 207a mentalities of government, and thus within the reach of the Fifth and Fourteenth Amendments to the Constitution of the United States. In making this determination, it is necessary to examine the various aspects of governmental involvement which the plaintiffs contend add up to make the defendant hospitals public corporations in the con stitutional sense. Findings of Fact, Conclusions of Law and Opinion Selection of Trustees The Board of Trustees of "Wesley Long Hospital, con sisting of twelve residents of the City of Greensboro, is a self-perpetuating body. It has the exclusive power and control over all real estate and personal property of the corporation, and all institutional service and activities of the hospital. No public authority has ever had any control whatever over the selection of the trustees, or any right to regulate, control or direct the business of the corpora tion. Consequently, the manner of selection of the Board of Trustees of Wesley Long Hospital is not a factor in determining whether the corporation is public in character. A different situation exists with reference to Cone Hos pital. Assuming that the Guilford County Medical Society, an "agency authorized to appoint one member of the Board of Trustees, is a public agency, nine members of the fifteen- member Board, none of whom are appointed by a public agency, are to be perpetuated through the election of the Board of Trustees. Thus, the members of the Board ap pointed by public officers or agencies are in a clear minority, and the private trustees are decisively and authoritatively in control of the corporation. “ The legal test between a private and public corporation is whether the corporation is subject to control by public authority, state or municipal. To make a corporation public, its managers, trustees, or di- 208a rectors must be not only appointed by public authority but subject to its control.” Norris v. Mayor and City Council of Baltimore, 78 F. Supp. 451, 458 (Dis. of Maryland, 1948). The rule enunciated in the Norris case seems to have been an established legal principle since 1819. In that year, Mr. Justice Story, in Dartmouth College v. Woodward, 17 U. S. (4 Wheat.) 518, 671, 4 L. Ed. 629 (1819), stated: “When the corporation is said, at the bar, to be public, it is not merely meant that the whole com munity may be the proper objects of its bounty, but that the government have the sole right, as trustees of the public interest, to regulate, control and direct the corporation, and its funds and its franchises, at its own good will and pleasure.” (Emphasis supplied.) The plaintiffs principally rely upon Commonwealth of Pennsylvania v. Board of Directors of City Trusts of City of Philadelphia, 353 U. S. 230, 77 S. Ct. 806, 1 L. Ed. 2d 792 (1957), to support their contention that the appoint ment of a minority of the members of the Board of Trus tees of Cone Hospital by public officers and agencies ma terially affects the private character of the corporation. Such reliance is not well taken. In that case, the entire trust was administered by the Board of Directors of City Trusts of Philadelphia, a body created by an act of the Pennsylvania Legislature. No case has been cited or found which holds that the appointment of a minority of trustees by public officers or agencies converts the character of the corporation from private to public. The entire record makes it quite clear that the Co^~ Hospital, originally chartered as a private corporation, is subject to no control by any public authority, and that the Findings of Fact, Conclusions of Law and Opinion 209a appointment of the minority members of its trustees by public officers and agencies has in no way changed the pri vate character of its business. E x e m p t io n F r o m A d V a l o r e m T a x A s s e s s m e n t s Both defendant hospitals are exempt from ad valorem taxes assessed by the City of Greensboro and the County of Guilford, North Carolina. The same is true with respect to the real and personal property owned by other private religious, educational and charitable organizations.1 Surely it cannot be said that a purely local church, school or hos pital becomes an instrumentality of the state, and subject to its control, by simply having its property exempt from ad valorem taxes. No authority has been cited for such a proposition. Indeed, the plaintiffs in their brief do not con tend that ad valorem tax exemptions “ in and of itself makes these hospitals agencies of the state and the United States government,” but simply argue that all financial contribu tions from public funds, whether direct or indirect, must be considered in determining whether the defendant hos pitals are agencies of the Government. While the subject was not discussed in Eaton v. Bd. of Managers of James Walker Memorial Hospital, 4 Cir., 261 F. 2d 521, affirming 164 F. Supp. 191 (E. D. N. C., 1958), cert, den., 359 U. S. 984, 3 L. Ed. 2d 934, 79 S. Ct. 941 (1958), the real and per sonal property of the James Walker Memorial Hospital was exempt, by state statute, from county and municipal ad valorem tax assessments. It is concluded that the exemption of the defendant hos pitals from ad valorem taxes is not a factor to be con sidered in determining whether the hospitals are public agencies. Findings of Fact, Conclusions of Law and Opinion 1 Sections 105-296 and 105-297, General Statutes of North Carolina. 210a Defendant H ospitals as L icensees of State of Nobxh Carolina Since July 1, 1947, every hospital in the State of North Carolina, both public and private, has been required to secure a license from the State through the North Carolina Medical Care Commission.2 Both defendant hospitals are licensed by the State, and have complied with the licensing procedures and standards prescribed by the North Carolina Medical Care Commission. The stated purpose for requir ing hospitals to be licensed “is to provide for the develop ment, establishment and enforcement of basic standards (1) for the care and treatment of individuals in hospitals and (2) for the construction, maintenance and operation of such hospitals, which operation will insure safe and ade quate treatment of . . . individuals in hospitals . . . ” 3 A license is subject to suspension or revocation under cer tain conditions.4 The North Carolina Medical Care Com mission is permitted to make such inspection of hospital facilities as it deems necessary.5 Under the rules and regu lations of the North Carolina Medical Care C o m m is s i o n , all professional and non-professional personnel of hospitals must be given pre-employment physical examinations. Pro vision is made for the organization and qualification of medical staffs of hospitals, and certain facilities are re quired for operating rooms, delivery rooms, rooms occu pied by maternity patients, and rooms occupied by chil dren. There are certain requirements with respect to medi- Findings of Fact, Conclusions of Law and Opinion 2 Section 131-126.3, General Statutes o f North Carolina. 3 Section 131-126.2, General Statutes of North. Carolina. 4 Section 131-126.6, General Statutes of North Carolina. 5 Section 131-126.9, General Statutes of North Carolina. 211a cal records and reports, the presence of professional registered nurses at all times, and the maintenance of sani tary kitchens. The Commission also reserves the right, in case any public funds will be used in construction of a hospital facility, to approve the plans in advance of con struction. As in the case of licenses issued to restaurants, the hos pital licensing statutes and regulations are designed to protect the health of persons served by the facility, and do not authorize any public officials to exert any control what ever over management of the business of the hospital, or to dictate what persons shall be served by the facility. In Williams v. Howard Johnson’s Restaurant, 4 Cir., 268 F. 2d 845 (1959), it was argued that if a state licensed a restaurant to serve the general public, such restaurant thereby became “burdened with the positive duty to pro hibit unjust discrimination in the use and enjoyment of the facilities.” (268 F. 2d 845, 847). In rejecting this argu ment, the Court stated: “ This argument fails to observe the important dis tinction between activities that are required by the state and those which are carried out by voluntary choice and without compulsion by the people of the state in accordance with their own desires and social practices. Unless these actions are performed in obedience to some positive provision of state law they do not fur nish a basis for the pending complaint. . . . The stat ute [restaurant licensing law] is obviously designed to protect the health of the community but it does not authorize state officials to control the management of the business or to dictate what persons shall be served. The customs of the people of a state do not constitute state action within the prohibition of the Fourteenth Amendment.” Findings of Fact, Conclusions of Law and Opinion 212a What the Court of Appeals for this Circuit has said with respect to licenses required of restaurants in Virginia is equally true with reference to licenses required of hos pitals in North Carolina. In neither instance does the state attempt to exert any control over the personnel, manage ment or service rendered by the facility involved. It is a matter of common knowledge that a license is required by members of practically all professions and most businesses. To hold that all persons and businesses required to be li censed by the state are agents of the state would go com pletely beyond anything that has ever been suggested by the courts. The Williams case, supra, is clear authority for the proposition that the license requirement for hos pitals in North Carolina in no way changes the character of the institution from private to public. Student Nursing Program at Cone H ospital The plaintiffs allege that the participation of the Cone Hospital in training student nurses from Woman’s College of the University of North Carolina and the Agricultural and Technical College of North Carolina, both State-sup- ported institutions, should be considered in determining whether the institution is an agency of the State. The pro gram is purely voluntary on the part of the hospital, and the only benefit received is that derived from the creation of a source of well-trained nurses. It is significant, however, that the hospital has no priority to employ any nurses graduat ing from either college, and must compete for the services of these graduates with other interested hospitals or em ployers. The monetary value of the services rendered the hospital by the student nurses is not commensurate with the substantial contribution the hospital has made from its own funds and facilities to the furtherance of the program. Findings of Fact, Conclusions of Law and Opinion 213a, It is difficult to understand how this program, purely volun tary in nature, and carried on at a substantial monetary sacrifice to the hospital, in any way affects the private character of the hospital. The plaintiffs make the interest ing, but in the opinion of the Court, completely untenable, argument that the hospital, in expending its resources to aid student nurses enrolled at the two State institutions involved, are doing the work of the State, and thereby be come agents of the State, “ subject to the constitutional restraints of governmental acts to the same extent as pri vate persons who govern a company town.” In other words, the plaintiffs make the novel argument that it is the giving of assistance to the State, rather than receiving assistance, that changes the character of the hospital. There is no sug gestion that either educational institution exercises any control whatever over the hospital, or attempts to direct any of its policies. The program does not relieve the hospital of any of its personnel requirements. The students partici pating in the program are not employees of the State, and they participate in the educational program provided by the hospital on a purely voluntary basis. The assertion that the participation of the hospital in this program in any way affects the character of its operation is completely unsup ported by any authority that has been brought to the atten tion of the Court. There is an interesting discussion of a somewhat related problem by Judge Matthews in Mitchell v. Boys Club of Metropolitan Police, D. C., 157 F. Supp. 101 (D. C.,D. C. 1957). A l l o c a t io n o f H i l l - B u r t o n F u n d s to D e f e n d a n t H o s p it a l s Both defendant hospitals have received substantial fed eral funds under the Hill-Burton Act6 in aid of their con- Findings of Fact, Conclusions of Law and Opinion 6 42 USCA $ 291, et seq. 214a straction and expansion programs. These funds were al located to the defendants by the North Carolina Medical Care Commission, an agency of the State. The Cone Hospital has received $1,269,950.00 under the Hill-Burton Program, or 15 per cent of its total construction expense, and Wesley Long Hospital has received, or will receive, under the same program, the sum of $1,948,800.00, or 50 per cent of its con struction expense. All funds received, or to be received, by both hospitals were allocated and granted to, and ac cepted by, the hospitals with the express written under standing that admission of patients to the hospital facilities might be denied because of race, color or creed. This un derstanding was consented to by the Surgeon General of the United States and the North Carolina Medical Care Commission, acting pursuant to Section 291e(f) of Title 42, United States Code (Hill-Burton Act), and Public Health Service Regulations, 42 CFR § 53.112. These stat utes and regulations permit the Surgeon General to waive the requirement of nondiscrimination on the basis of race upon a finding that separate but equal facilities are avail able for separate population groups. Racial discrimination, it should be emphasized, is per mitted, not required. As evidence of the fact that the de fendants do not consider themselves obligated under the agreement permitting segregation, the Cone Hospital has for some time, admitted Negro patients on a limited basis. Additionally, the defendants have repeatedly stated, both in their briefs and oral arguments, that they in no way rely upon the provisions of the Hill-Burton Act, or their agree ment with the North Carolina Medical Care Commission, which permit discrimination. Under these circumstances, they earnestly contend, and at the time of the oral argu ments both parties conceded, that the Hill-Burton funds Findings of Fact, Conclusions of Law and Opinion 215a received by the defendant hospitals should be considered as unrestricted funds. The plaintiffs also place considerable importance upon the fact that recipients of Hill-Burton funds are required to conform to certain provisions of the Public Health Service Eegulation which sets forth detailed minimum requirements and standards for the construction and equipment of hos pitals. They emphasize that this is an additional and im portant involvement the defendants have with a public agency. It can fairly be said, however, that the only signifi cance of these requirements is to insure properly planned and well constructed facilities that can be efficiently oper ated. It is significant that Section 291m of the Act7 pro vides : “ Except as otherwise specifically provided, nothing in this subchapter shall be construed as conferring upon any federal officer or employee the right to exercise any supervision or control over the administration, per sonnel, maintenance, or operation of any hospital, diag nostic or treatment center, rehabilitation facility, or nursing home with respect to which any funds have been _ or may be expanded under this subehapter.” . In Eaton v. Bd. of Managers of Janies Walker Memorial Hospital, 4 Cir., 261 P. 2d 521, affirming 164 F. Supp. 191 (E. D. N. C., 1958), cert, den., 359 U. S. 984, 3 L. Ed. 2d 934, 79 S. Ct. 941 (1958), the land upon which the hospital was constructed was donated by the city and county. These governmental units also made annual contributions to the operation of the hospital for a period of many years. These contributions in the form of land and money were held in Findings of Fact, Conclusions of Laiv and Opinion 7 42 US CA § 291m. 216a sufficient to make the hospital subject to the inhibitions of the Fourteenth Amendment. The provisions of the Hill-Burton Act were recently con sidered by the Supreme Court of Appeals of the Common wealth of Virginia in Khoury v. Community Memorial Hos pital, Inc., 203 Va. 236, 123 S. E. 2d 533 (1962). The hos pital there was a non-stock, nonprofit corporation chartered under the laws of Virginia to establish, construct and main tain a hospital. More than half of its construction funds was contributed by the federal government under the Hill- Burton Act, another portion was contributed by the Com monwealth of Virginia, and the balance provided by local subscriptions. The management of the hospital was vested in a self-perpetuating board of trustees. The Court held, at page 538: “We next turn to the question of whether the use of federal and state funds for construction thereby con stituted the hospital a public corporation. “ The distinctions between a public and private cor poration have been so carefully drawn and so long recognized that we experience no difficulty in answering the question in the negative. “The hospital is not owned by the federal or state government, albeit federal and state funds may have made its construction possible. It is not an instru mentality of government for the administration of any public duty, although the service it performs is in the public interest. Its officers are not appointed by and are not representatives of government, not withstanding that their authority stems from legisla tive enactment. Under these circumstances, the hos Findings of Fact, Conclusions of Law and Opinion 217a pital falls squarely within the time-honored definition of a private corporation.” Since no state or federal agency has the right to exercise any supervision or control over the operation of either hospital by virtue of their use of Hill-Burton funds, other than factors relating to the sound construction and equip ment of the facilities, and inspections to insure the main tenance of proper health standards, and since control, rather than contribution, is the decisive factor in deter mining the public character of a corporation, it necessarily follows that the receipt of unrestricted Hill-Burton funds by the defendant hospitals in no way transforms the hos pitals into public agencies. T otal Governmental I nvolvement and Participation While the plaintiffs argue that each of the contacts de fendant hospitals have with governmental agencies is im portant, and each has a material bearing on the public character of both hospitals, the main thrust of their argu ment is that the totality of governmental involvement makes the hospitals subject to the restraints of the Four teenth Amendment. For this argument they mainly rely upon Burton v. Wilmington Parking Authority, 365 H. S. 715, 6 L. Ed. 2d 45, 81 S. Ct. 856 (1961). But a careful reading of this case does not support plaintiffs’ argument. The Burton case involves the right of Eagle Coffee Shop, Inc., the lessee of the Wilmington Parking Authority, an agency of the State of Delaware, to refuse to serve the plaintiff food or drink solely because of his race. This is a situation far different from the facts in this case. After specifically defining the limits of its inquiry, the Supreme Court only held that “when a State leases public property Findings of Fact, Conclusions of Law and Opinion 218a in the manner and for the purpose shown . . . the proscrip tions of the Fourteenth Amendment must be complied with by the lessee as certainly as though they were binding covenants written into the agreement itself.” (Emphasis supplied). This same general principle of law had earlier been pronounced by this Circuit in City of Greensboro v. Simkins, 4 Cir., 246 F. 2d 425 (1957), affirming 149 F. Supp. 562 (M. D. N. C., 1957). The defendants, on other hand, argue that if neither of the contacts they have with a public agency makes them as instrumentality of government, the same result would necessarily follow with respect to the total of such contacts. In other words, the defendants argue that zero multiplied by any number would still equal zero. They place principal reliance upon Eaton v. Bd. of Managers of James Walker Memorial Hospital, 4 Cir., 261 F. 2d 521, affirming 164 F. Supp. 191 (E. D. 1ST. C., 1958), cert. den. 359 U. S. 984, 3 L. Ed. 2d 934, 79 S. Ct. 941 (1958), in support of their position. The facts in the Eaton ease more clearly resemble the facts in the case under consideration than any decision that has been cited by either side. The land upon which the hospital was constructed was conveyed to the James Walker Memorial Hospital by the city and county, to be held in trust for the use of the hospital so long as it should be maintained as such for the benefit of the city and county, with reverter to the city and county in case of its disuse or abandonment. This certainly involved a substantial financial contribution by public agencies to the hospital. The presence of the reverter clause makes the conveyance even more significant. The city and county made substan tial appropriations to the hospital over a long period of time. There were other significant contacts with public agencies, all of which are referred to in the opinion. Addi Findings of Fact, Conclusions of Law and Opinion 219a tionally, while not discussed by either the District Judge or the Court of Appeals, presumably for the reason they were considered unimportant factors, the hospital property was exempt from city and county ad valorem taxes,8 and the hospital was licensed by the North Carolina Medical Care Commission.9 The only contacts Wesley Long Hos pital has with public agencies are (1) exemption from ad valorem taxes (2) state license and (3) the receipt of Hill- Burton funds. All these factors were present in the Eaton case, if city and county funds have the same significance as unrestricted federal funds under the Hill-Burton Act. The only additional contacts Cone Hospital has with govern mental agencies are that six of its fifteen trustees are appointed by public officers or agencies, and it aids two publicly owned colleges in their nursing program. It has been determined that these contacts have no bearing what ever on the public character of the hospital. Both hospitals are effectively managed and controlled by a self-perpetuating board of private trustees. No public agency has the power to exercise any supervision or control over the management or operation of either hospital. Neither hospital is required to discriminate against any citizen because of race, and no right to do so is claimed by either hospital by reason of its agreement with the Surgeon General of the United States and North Carolina Medical Care Commission. Under these circumstances, it cannot be said that the defendants waived their privacy by accepting Hill-Burton funds. Board of Trustees of Vincennes University v. State of Indiana, 55 U. S. (14 How.) 268, 14 L. Ed. 416 (1852). 8 Sections 105-296 and 105-297, General Statutes of North Carolina. 9 Section 131-126.3, General Statutes of North Carolina. Findings of Fact, Conclusions of Law and Opinion 220a Findings of Fact, Conclusions of Law and Opinion Declaratory R elief The plaintiffs drew into question the constitutionality of the separate but equal provisions of the Hill-Burton Act, and the United States moved to intervene pursuant to the provisions of 28 US C § 2403. The intervention was allowed. The United States has now moved for an order declaring unconstitutional, null and void the separate but equal provi sions of Section 291e(f) of the Hill-Burton Act, 42 USC §291e(f), and enjoining the defendants from discriminat ing on account of race or color in the admission of patients to their facilities. It is a cardinal principle that courts do not deal in advisory opinions, and avoid rendering a decision on con stitutional questions unless it is absolutely necessary to the disposition of the case. Barr v. Matteo, 355 U. S. 171, 2 L. Ed. 2d 179, 78 S. Ct. 204 (1957). If the defendants were claiming any right or privilege under the separate but equal provisions of the Hill-Burton Act, it would perhaps be necessary to the disposition of the case to rule upon the constitutionality of those provisions. Here, however, as earlier stated, the defendants make no such claim, and it is unnecessary for the Court, as requested by the United States, to advise the Surgeon General with respect to his legal obligations under the Act. There has been no show ing that the statute in question has resulted in depriving the plaintiffs or any other citizens of their constitutional rights. The only issue involved in this litigation is whether the defendants have become governmental agencies in the constitutional sense by the acceptance of public funds in the construction and equipment of their hospitals, and their other involvements with public agencies. The constitution ality of the separate but equal provisions of the Hill- Burton Act is not an issue, and a declaration as to its 221a constitutionality is not necessary to the disposition of the case. What the plaintiffs and the United States are really asking in their prayer for declaratory relief is an order desegregating all private facilities receiving Hill-Burton funds over a period of years, even though the funds were given with the understanding that the private facilities might retain their freedom to conduct their private affairs in their own way. This court is not prepared to grant the declaratory relief prayed for, thereby retroactively alter ing established rights, particularly when it is unnecessary to do so, in deciding the jurisdictional question. Conclusions op L aw 1. The various contacts the defendant hospitals have been shown to have with governmental agencies, both fed eral and state, do not make them instrumentalities of gov ernment in the constitutional sense, or subject them to either the Fifth Amendment or the Fourteenth Amend ment to the United States Constitution. 2. The defendants are private persons and corporations, and not instrumentalities of government, either state or federal, and none of the defendants are subject to the inhibitions of the Fifth Amendment or the Fourteenth Amendment to the United States Constitution. 3. This action is one brought by individuals seeking redress for the alleged invasion of their civil rights by other individuals or private corporations, and this Court has no jurisdiction over the subject matter of the action. Findings of Fact, Conclusions of Law and Opinion 222a Findings of Fact, Conclusions of Law and Opinion 4, The motions for summary judgment by the plaintiffs and the United States should be denied, and the motion of the defendants to dismiss the action for lack of jurisdiction over the subject matter should be granted. Edwin M. Stanley United States District Judge December 5, 1962. 223a Judgment (Filed: December 17,1962) The Court having filed, on the 5th day of December, 1962, its findings of fact, conclusions of law and opinion, in accordance therewith, it is Ordered, adjudged and decreed: 1. that the motions for summary judgment by the plain tiffs and the United States are hereby denied; 2. that the defendants’ motions to dismiss the complaint and the pleading in intervention for lack of jurisdiction over the subject matter are hereby granted; 3. that the defendants are entitled to their costs in this Court. Dated: December 17,1962. E dwin M. Stanley United States District Judge We ask for this: F alk Carruthers & B oth By H erbert S. F alk Attorney for Moses U. Cone -Memorial Hospital, A Corporation, and Harold Bettis, Director. T hornton H. Brooks Attorney for Wesley Long Community Hospital, A Corporation, and A. 0. Smith, Administrator. Seen: C. 0. P earson Attorney for Plaintiffs W illiam H. Murdock Attorney for United States 224a Notice of Appeal (Filed: January 4,1963) Notice is hereby given that the Plaintiffs, G. C. Simkins, Jr., A. V. Blount, Jr., Walter J. Hughes, Norman N. Jones, Girardeau Alexander, Milton H. Barnes, W. L. T. Miller, E. C. Noel, III, F. E. Davis, A. J. Taylor and Donald R. Lyons, in this action hereby appeal to the United States Court of Appeals for the Fourth Circuit from the Order (1) denying plaintiffs’ and intervenor’s motions for sum mary judgment; and (2) granting defendants’ motions to dismiss the complaint and the pleading in intervention, entered in this action on the 17th day of December, 1962. Dated: ,1962 J ack Greenberg James M. Nabrit, III M ichael Meltsner 10 Columbus Circle New York 19, New York Conrad 0 . P earson 203% East Chapel Hill Street Durham, North Carolina Attorneys for Plaintiffs 225a Notice of Appeal (Filed: January 11,1963) Notice is hereby given that United States of America, Intervenor above named, hereby appeals to the United States Court of Appeals for the Fourth Circuit from the Order (1) denying plaintiffs’ and intervenor’s motions for summary judgment; and (2) granting defendants’ motions to dismiss the complaint and the pleading in intervention, entered in this action on the 17th day of December, 1962. W illiam H. Mukdock United States Attorney Attorney for Intervenor 314 Post Office Building Greensboro, North Carolina V /