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Mr. THOм. I notice you have a pretty steady expenditure from year to year for each class of ships?

Commander STYER. Yes, sir.

Mr. THOм. Does that mean that you replace these instruments? Commander STYER. No, sir; it is taken up mostly in repair and upkeep of the instruments, and in some cases, replacing worn-out instruments.

Mr. THOM. You have to be at the job all the time, is that it?
Commander STYER. Yes, sir.

INCREASES IN ESTIMATE FOR 1939

LOOSE-LEAF BINDERS

Mr. UMSTEAD. The next item is No. 3, loose-leaf binders. Mr. HENKEL. We are asking for $2,200 for loose-leaf binders. In 1936 and 1937 we purchased quite a large supply, but by the time the fiscal year 1938 is over that supply will be practically exhausted. Mr. UMSTEAD. What was the appropriation for that purpose for the present fiscal year?

Mr. HENKEL. The allocation for the loose-leaf binders for the fiscal year 1938 was $705.

Mr. UMSTEAD. You are asking now for $2,195 additional for that purpose?

Mr. HENKEL. That is correct, sir.

INCREASE FOR GROUP VI (B) EMPLOYEE

The next item of increase is the promotion of an assistant inspector. SP-5. This is for one assistant inspector at the Navy Yard, New York, whom we promoted in 1937. At that time there was money available for the reason that a position at Pearl Harbor was vacant. Mr. UMSTEAD. An increase of $60 a year?

Mr. HENKEL. Yes, sir; $60 a year increase.

Mr. UMSTEAD. All right, sir.

The next item is ocean and lake surveys.

OCEAN AND LAKE SURVEYS

Admiral ANDREWS. Captain Leahy, the hydrographer.

Mr. UMSTEAD. Captain, will you proceed with such general statement as you desire to make?

Captain LEAHY. The United States Navy conducts surveys for the construction of navigational charts of foreign waters, which areas are of strategic and commercial importance to the United States and of which no reliable charts exist. Surveys in recent year have been in Central American waters and the coasts of Colombis and Venezuela. These areas are of strategic importance due to the proximity to the Panama Canal, and there is a large demand from: American commercial interests for accurate charts of these waters The present charts of much of these coasts are from surveys made approximately 100 years ago and are both inaccurate as to location and detail and entirely inadequate due to extensive unsounded areas Surveying vessels cover an average of 3,000 square miles in a survey

eason of 8 months. The rest of the year is taken up with making assage to and from the survey areas, and navy yard overhauls, ombined with working up data from completed field work.

Mr. UMSTEAD. The table on page 2 may be included in the record this point.

(The table referred to is as follows:)

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Mr. UMSTEAD. Captain, I believe there is no change in the amount hich you are now requesting and the appropriation for the present scal year?

Captain LEAHY. No, sir.

Mr. UMSTEAD. For the present fiscal year we allowed $10,000 for arveys in Pacific Ocean areas?

Captain LEAHY. Yes, sir.

Mr. UMSTEAD. I believe that the current appropriation bill was the rst time that item had been carried?

Captain LEAHY. Yes, sir.

Mr. UMSTEAD. You are asking for the same amount for that purose for the next year?

Captain LEAHY. Yes, sir. It is a continuing project, and, as a atter of fact, the $10,000 is being held in reserve in accordance with the Presidential order, and for the further reason that the ommander in chief in the Far East has been occupied in and about hanghai.

Mr. UMSTEAD. Then you have not actually expended any part of nat $10,000 that is carried in this appropriation bill for that purose?

Captain LEAHY. Yes, sir; about $400.

Mr. UMSTEAD. Has the balance of that item been set up as a part f the so-called administrative reserve?

Captain LEAHY. Yes, sir.

Mr. UMSTEAD. And you do not know now whether or not that oney will be released for expenditure during the remainder of this scal year, do you?

Captain LEAHY. No, sir.

Mr. UMSTEAD. Well, if it is not released, then what would be your pinion relative to the carrying of the $10,000 for 1939 in this item? Captain LEAHY. Mr. Chairman, even if it were released and we ere able to get started on the survey this year, it would be necessary

to continue it for next year, because it will be a continuing proposi tion for probably 3 or 4 years to get this area usable.

Mr. UMSTEAD. Is there any further statement you would like to make about this appropriation item, captain?

Captain LEAHY. No, sir.

Mr. UMSTEAD. Are there any questions, gentlemen? All right, thank you, sir.

THURSDAY, DECEMBER 9, 1937.

NAVAL RESERVES

Mr. UMSTEAD. The next item is organizing the Naval Reserve. Admiral ANDREWS. Captain Gygax and Captain Schofield, who will be heard on the Naval Reserve organization.

Mr. UMSTEAD. All right, Captain; make any statement on this item that you desire to make.

PURPOSE OF THE APPROPRIATION

Captain GYGAX. The appropriation "Organizing the Naval Reserve" is intended to bear all the expenses of Naval Reserve activities, excepting the pay and allowances of the 16- and 20-year transferred men. initial costs of airplanes and spares furnished the Reserve, and ordnance, small arms, and ammunition. It includes maintenance, repair and operating costs for vessels assigned to the Naval Reserve, the costs for upkeep and operation of hangars and aviation bases assigned to the Naval Reserve, and for airplane operations, and also the active duty pay and allowances of aviation cadets assigned as part of the peacetime aeronautical organization of the Regular Navy.

Its object is to provide a trained force of officers and men immedi ately available for duty with the Navy, in the event of war, in suffi cient numbers to supply the Navy's needs until such time as the schools and training stations to be then established shall begin to turn out trained personnel in the required numbers.

All the expenses of the aviation cadet program are borne by thi appropriation. This program seeks to furnish from the Naval R serve the additional naval aviators required for the peacetime opera tion of the fleet. It absorbs approximately 57 percent of the appro priation.

The Naval Reserve as now constituted and organized under th provisions of the act of February 28, 1925, consists of three classes The Fleet Naval Reserve, the Merchant Marine Naval Reserve, and the Volunteer Naval Reserve.

NUMBER OF OFFICERS AND MEN IN THE FLEET AND MERCHANT MARINE NAVAL RESERVE

The number and the designation of the officers and men comprisin the Fleet Reserve, as of September 30, 1937, were as follows:

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Men transferred to the Fleet Naval Reserve prior to July 1, 1925, after 20 years'
naval service..

F-4-d

Men transferred to the Fleet Naval Reserve after July 1, 1925, upon completion of
20 years' naval service.

Men transferred to the Fleet Naval Reserve after July 1, 1925, upon completion of
16 years' naval service.

F-1 Men enlisted for 4-year periods or with extended enlistments and assigned to organizations of the Fleet Reserve..

F 3-c

F-3-d
F-4c

Men transferred to the Fleet Naval Reserve prior to July 1, 1925, after 16 years'
naval service.

10, 071

1,204

1

9,790

F-5

4,370

Men who first enlist in the Navy after July 1, 1925, or who reenlist with broken
service after that date and transfer to the Naval Reserve after 20 years' naval
service......

Total.

14

25, 449

THE MERCHANT MARINE NAVAL RESERVE

As of September 30, 1937, the Merchant Marine Naval Reserve consisted of the following officers and men:

OFFICERS

Officers, D-M (deck officers).

Officers, E-M (engineering officers).

Total officers, Merchant Marine Naval Reserve-

MEN

M-1 (nonlicensed merchant marine personnel enlisted in Naval Reserve) __ Number of vessels warranted to fly the Merchant Marine Naval Reserve dag

VESSELS WARRANTED TO FLY THE MERCHANT MARINE NAVAL RESERVE FLAG

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Mr. PLUMLEY. What are the conditions contingent to authorization. of a warrant to fly the Naval Reserve Merchant Marine flag?

Captain GYGAX. The condition is that the Secretary of the Navy approves of the vessel as being suitable for use as a naval auxiliary in time of war, that the master and at least 50 percent of the officers be members of the Naval Reserve, and that such flag or pennant be not flown in lieu of the national ensign.

Mr. PLUMLEY. As I understand it, there is no way in which the Naval Establishment can compel anybody to join the Naval Reserve. It is voluntary!

Captain GYGAX. That is absolutely correct. There is a specific provision in the law that also definitely directs that no discrimination shall be exercised against a merchant officer if he is ineligible for the Naval Reserve.

INDUCEMENTS OFFERED FOR TRAINING IN THE MERCHANT MARINE NAVAL RESERVE

Mr. PLUMLEY. What inducements, if any, are there to men not now members of the Merchant Marine Naval Reserve to become members? Captain GYGAX. There are, of course, the patriotic considerations, and the fact that I believe a merchant officer normally would esteem being a member of the Naval Reserve. Aside from that, the basic law does authorize the payment of a monthly retainer pay in rank provided the appropriation is specifically made for that purpose. Such an appropriation has to date never been made. The basic law also provides authority for 2 weeks' training each year of Mer chant Marine Naval Reserve officers and men, provided, again, that appropriations are made for the purpose. Until the present fiscal year no such appropriation has ever been made. For the fiscal year 1938 there is an appropriation that permits us to train 100 officers and 120 men.

Mr. PLUMLEY. Then the number is limited?

Captain GYGAX. Yes, sir, by the appropriation act.

Mг. THOм. As a matter of fact, did you extend to this Merchant Marine Naval Reserve to the extent of 100 officers and 120 men the training they were expected to get during this present fiscal year?

Captain GYGAX. No, sir. We have had one cruise in which 32 officers were trained, and of the then available men, 13 of them, and in addition to that we have been training on the west coast perhaps 22 or so. We will have no difficulty in giving that training to the rest of the officers concerned. However, we do not know what the situation will be with respect to the men.

Mr. THOм. You have not given any training to the men?
Captain GYGAX. To 13 only, so far.

NUMBER OF OFFICERS AND MEN IN THE VOLUNTEER NAVAL RESERVE

As of the 30th of September 1937, the Volunteer Naval Reserve consisted of the following officers and men:

Volunteer Naval Reserve, Sept. 30, 1937

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