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

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29

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

flag

232

VESSELS WARRANTED TO FLY THE MERCHANT MARINE NAVAL RESERVE FLAG 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. PLEMLEY. As I understand it, there is no way in which the Saval Establishment can compel anybody to join the Naval Reserve. It is voluntary!

Captain Gygay. That is absolutely correct. There is a specific provision in the law that also definitely directs that no discrimination skall 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 rear 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.

Mr. THOM. 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 31 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. Thom. 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

Class

Officers-general service

Number

D-V(G) Deck officers..

E-V(G) Engineering officers
DE-V(G) Deck and engineering officers

A-V(G) Aviation officers..
MC-V(G) Medical officers.
DC-V(G) Dental officers.

SC-VG) Supply officers. ChC-V(G) Chaplains.

Chief warrant and warrant officers.

Total..

Special service

D-V(8) Deck officers....

E-V(S) Engineering officers.
DE-V(S) Deck and engineering officers.
A-V(K) Aviation ground officers.

A-V(S) Aviation officers...
A-V(T) Aviation transport pilots.
MC-V(S) | Medical officers.
DC-V(S) Dental officers..

SC-V(S) Supply officers.
ChC-V(S) Chaplains..
CC-V(S) Naval constructors.

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I'nder the provisions of the act of April 15, 1935, the grade of aviaion cadet was established in the Naval Reserve. The act is designed to furnish the Navy with the additional naval aviators required for the peacetime operation of the fleet until such time as sufficient regular Navy personnel becomes available, as well as to maintain in the Naval Reserve the required number of qualified naval aviators. It contemplates 1 year's training duty at Pensacola, followed by up to 3 years' active duty with the fleet, at the end of which time the aviation cadet is released from active duty and commissioned as an aviation ensign in the Naval Reserve. In addition to his prescribed pay, subsistence, and clothing allowances, he receives Government-paid insurance while performing active duty and a cash bonus after he has served 4 years. Those selected for this training are first enlisted as Seamen second class), class V-5, United States Naval Reserve, and given a month's preliminary training at the various Naval Reserve aviation bases. Those who qualify are then appointed aviation cadets and sent to Pensacola. The number of these on September 30, 1937, were as follows: Seamen (second class), V-5 (student aviation pilots)

334 Aviation cadets at Pensacola Aviation cadets at sea..

407

342

PROGRAM OF DEVELOPMENT

On January 18, 1937, the Secretary of the Navy approved a 5-year development program for the Naval Reserve for the fiscal years 10 to 1942 inclusive. This program provides for an orderly building up of all classes of the Naval Reserve in annual increments to aggregate 80 percent of mobilization requirements during the fiscal jear 1942 and, subject to the appropriation of necessary funds, specifies the number of officers and men of the various classes who are to be given training duty and who are to perform drills each year. This program contemplated no increase in the present number of fleet divisions, but gradually strengthening these organizations to mobilization requirements and giving them the drills and training

duty contemplated by law; gradually building up the Merchant Marine Naval Reserve to 80 percent of mobilization requirements, giving drills and annual training duty to approximately half of those on the rolls, and giving annual training duty to approximately one-quarter of the balance; and building up the Volunteer Naval Reserve to 80 percent of mobilization requirements, and giving annual training duty to approximately one-quarter of those on the rolls. It also contemplated a continuation of the aviation-cadet program and its expansion by a sufficient number ultimately to provide in the Naval Reserve the additional qualified Naval aviators required by the Navy immediately on the outbreak of war. The ultimate annual cost of this program, including the aviation-cadet training and all other expenses chargeable against this appropriation, is estimated at $21,818,000. The appropriation actually granted for the fiscal year 1938 was insufficient to complete the first year's require ments. This budget contemplates no progress whatever toward fulfillment of the program, other than increases in aviation cadets at sea to meet present fleet needs.

ADMINISTRATIVE RESERVE Mr. UMSTEAD. I believe that $600,000 of your current appropriation has been placed in the administrative reserve!

Captain Gygax. That is correct.

Mr. UMSTEAD. And if it should remain there, what would it elimi: nate in your 1938 program?

Captain Gyfax. It would eliminate $155,000 for drill pay for the seagoing reserves, $19,000 for training pay for the same group, and $35,000 for drill pay of the aviation reserve. The complete break down of this $600,000 reserve is as follows:

Breakdown of administrative reserve-Naval Reserve appropriation 1938

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If not released, the effect on proposed Naval Reserve activitie of the foregoing, will be as follows:

(a) Reduction in number of drills from 48 to 43.

(b) Reduction in number of officers and men of the seagoin branch to be given training duty.

(c) Reduction in the aviation cadet program whereby the averag undergoing training at Pensacola throughout the year will be reduce from 478 to 462.

Mr. Thom. How many items are there?

Captain GYGAX. There are three items which will materially affec the administration of the Reserve. There are four items, totalin $391,000, which, because of a change in the aviation cadet progran would, in any case, not be expended.

Mr. Thom. What is the change in the aviation cadet program? Captain Gygax. A downward revision of the number of cadets hat are being trained at Pensacola. That is predicated on a number f considerations. The actual attrition at Pensacola of aviation adets has not been as high as expected; also, in greater degree, he program of ships and squadrons being commissioned has not dvanced as rapidly as was originally expected, and therefore these viation cadets are not needed as soon as was expected.

Mr. Thom. So that is where the bulk of the money is saved ? Captain GyGax. Yes, sir.

COST OF TRAINING NAVAL RESERVE AVIATION CADET

Mr. THOM. What is the estimated cost of a cadet per year at Pensacola-ten or fifteen thousand dollars, or something like that?

Admiral ANDREWS. It is pretty high. I think it is more than

Mr. UMSTEAD. It is between twelve and thirteen thousand per retr, I think. Captain Gygax. Yes, sir,

Mr. L'MSTEAD. The hearings on the 1938 bill, on page 210, disclove that the cost of training a Naval Reserve aviation cadet is $13,411, and that the cost of training a Regular Navy officer as an aviator is $26,991.

AVIATION CADETS

Captain Gygax. I understand the latter figure includes the Naval Academy costs of the office. The flying training costs are approximately equal. Mr. Chairman, I have one other item to finish the prepared statement I was making with respect to the aviation cadets a few minutes ago:

Due to a reduction in the need for aviation cadets for the fiscal year 1939, the Bureau of Navigation, in presenting its estimate to the Bureau of the Budget, made a voluntary reduction of $1,032,999, prior to the reduction imposed by the Bureau of the Budget. These reductions are reflected in the estimates presented herein.

This is the reduction in the aviation cadet program for the fiscal year 1939. But there is also a reduction for the fiscal year 1938, amounting to $391,000.

Mr. I'MSTEAD. That will show up in our consideration of those items, which we will come to in a few minutes.

NAVAL RESERVE ACTIVITIES_SUMMARY

Captain Gygax. The total amount carried in this Budget for the before-enumerated activities is $9,161,320, which is $115,789 less than tie amount appropriated for the fiscal year 1938. The details as to the number of reservists given training in prior years and to be given training within the limits of this Budget, are shown in the following

table:

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