City Approves Loan for New Hospital

After a long, harsh debate, at its Monday meeting, the Cambridge City Council tentatively endorsed a $9 million loan to build a new hospital.

The three-hour dispute was not on the necessity for the new hospital, but on how it should be financed.

At the debate's end, seven of the nine councillors signed a Commonwealth bill that would allow the City to raise its hospital debt limit $3 million above its current $6 million level.

$10 Million Requested

City Manager Joseph A. DeGuglielmo '29 had actually requested approval of a $10 million loan, claiming that the construction bids on the hospital had exceeded the architects' cost estimates by $2.2 million, and that a total of $9.8 million would be needed.

Councillor Edward A. Crane '35, who opposed DeGuglielmo's appointment as Manager, immediately objected to the request. He said that hospital construction could begin this year for only $8 million if money for its equipment was not appropriated now. The additional $2 million needed, Crane said, could be raised from City surpluses and special funds on hand. Equipment money could be raised after construction was over.

Crane also suggested that DeGuglielmo approach Harvard, M.I.T., and the Chamber of Commerce for additional cash contributions for the hospital.

DeGuglielmo, flanked by hospital construction officials, called his request absolutely safe. He said that the City could invest at a higher rate any money borrowed but not needed for construction.

Councillor Alfred E. Vellucci joined Crane in his opposition, citing three new Cambridge schools, a new fire station, and library addition as coming projects that would also call for City loans.

Velucci moved that DeGuglielmo use the $6 million already authorized by the state and ask the Council for the $2 million more that Crane considered necessary for construction to begin. The motion was defeated. 5-4, by the same alignment that had elected DeGuglielmo City Manager over John J. Curry '19.

During the debate, Councillor Cornelia B. Wheeler suggested the compromise loan of $9 million adding that extra money could be taken from City funds if this proved inadequate. Mayor Daniel J. Hayes Jr. formally proposed amending DeGuglielmo's bill from $10 to $9 million after Vellucci's motion was defeated.

The Commonwealth bill was signed by the five councillors who had voted down Vellucci's motion plus Councillors Walter J. Sullivan and Thomas H. D. Mahoney. Crane and Vellucci kept their pens in their pockets.