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type of thirty bed capacity, with a small detached ward for 
treatment of patients with contagious diseases. 
The sale price was $57,554.57, and a new site was pur- 
chased for $30,000. By a decision of the Comptroller of 
the Treasury, the balance of the sale price of the old build- 
ing could not be used for construction of a new building, so 
it was recommended that an appropriation be asked of Con- 
gress for construction. During the fiscal year 1881 an ap- 
propriation of only $7,000 became available for building a 
small cottage hospital. Considerable delay occurred in 
securing from the State Legislature a ceding of jurisdiction 
over the property. This was eventually secured, but the 
building was never built, and Mercy Hospital continued to 
care for service patients until the present hospital was opened. 
Meanwhile patients were being cared for under contract 
with the Pittsburgh Infirmary, and an out-patient office 
being rented in a building at Sixth and Smithfield streets. In 
[884 the care of Service patients was transferred to Mercy 
Hospital, the cost being 94 cents a day. 
On March 13, 1891, fire destroyed the Germania Bank 
building at the corner of Wood and Diamond streets, in 
which the out-patient office of the service was located at the 
time. Everything was lost, including all previous records. 
Temporary office rooms were rented at 666 Wood street un- 
til March 7, 1892, when the out-patient office was moved to 
the Federal Building. 
On October 15, 1902, a commission was appointed to 
examine various sites offered for a Marine Hospital which 
was authorized by Act of Congress March 81, 1902. The 
commission finally recommended the transfer to the Treasury 
Department of about five acres of the old Arsenal Reservation 
at Fortieth street and Penn avenue as a site for the hospital, 
and the transfer of this property was authorized by Act of 
Congress approved March 3, 1908, and consummated by 
William H. Taft as Secretary of War on the seventh of May, 
1904. The boundaries of this parcel of land are described in 
the official transfer document as follows: 
“Beginning at a point where the northerly side of Penn 
avenue meets the westerly side of Fortieth street and running 
thence northwesterly along the westerly side of Fortieth 
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