This item covers allowances for rental for nurses not furnished quarters in

The plans provide for Government quarters for 380 nurses in 1939 and for 380 nurses in 1938. The numbers shown above-50-must be given allowances of two rooms each, at $480 per annum, in each fiscal year.

(C) SUBSISTENCE ALLOWANCE, ACTIVE

This item covers subsistence allowance of 60 cents per diem for nurses not furnished subsistence in kind.

The number of nurses subsisted in messes will remain the same as in 1938 One hundred and nine will receive allowance of $219-one ration-when not subsisted in kind.

The number on the retired list is estimated to be 207, an increase of 21 over 35.

The language is retained in the act for emergencies. No rentals were paid in 337 and none are contemplated in 1938 or 1939.

PAY AND ALLOWANCES, RESERVES

(See p. 327)

The next item is pay and allowances, transferred members, Naval Reserve, 16- and 20-year men. This item covers the pay and allowances of transferred members of the Naval Reserve.

1938 appropriation; 217 active, 17,697 inactive___ 1939 estimate; 216 active, 18,189 inactive_-_

Decrease; 1 active increase, 492 inactive, net increase_-. Changes explained as follows:

DECREASE IN NUMBER AND CHANGES IN RATES

The amount is based upon the numbers expected to be in the Fleet Naval Reserve under sections 22, 23, 24, and 26 of the Naval Act approved February 28, 1925. It also provides for active duty pay for 216 Naval Reservists on active duty as shipkeepers, recruiters, radiomen, etc.

The details of the estimate for 1939 are as follows:

Retained pay F2 men assigned to the Fleet Naval Reserve under section 22 of the act of February 28, 1925: Men in this class will not draw retainer pay. as last assignments of men were made in the fiscal year 1932 and payments ceased in 1935.

Active duty pay: Difference between retainer pay and active duty pay for Reservists on recruiting duty, shipkeepers, radiomen, etc.

188 16-year men, F3 and F4c, at $1,203.25.

28 20-year men, F3 and F4d, at $743.12.

216-total additional for active duty...

12,171 16-year men at $686.75_.

6,018 20-year men at $1,146.88

Total inactive, 18,189.
Total

$226, 211

20,807

247,018

8,358, 434

6,901, 895

15, 260, 329

15, 507, 347

1938 APPROPRIATION

Active duty pay-difference between retained pay and active duty pay for Reservists on recruiting duty, shipkeepers, radiomen, etc.:

Mr. UMSTEAD. Admiral, I believe that this appropriation deals with the group of enlisted men which we discussed earlier in the morning?

Admiral CONARD. That is correct.

Mr. UMSTEAD. In connection with the retired pay of enlisted personnel?

Admiral CONARD. Yes, sir; it does.

Mr. UMSTEAD. This group will go out of the Regular Navy into the Reserve and then retire, is that it?

Admiral CONARD. Go out and serve in the Reserve for a while and then retire.

Mr. UMSTEAD. Serve in the Regular Navy for the required period of time which was 16 years, and I believe is now 20?

Captain ABBETT. That is right, except that men in the Navy beFore July 2, 1925, have the right to transfer after 16 years.

Mr. UMSTEAD. They then go into the Reserve and draw approximately 60 percent of their pay for 10 years from the time they go nto the Reserve, and then thereafter that amount, plus about $15 a month?

Captain ABBETT. Yes, sir; this is the group that we referred to in he early part of the hearing. The 20-year men draw 60 percent of their pay, the 16-year men about 45 percent.

Mr. UMSTEAD. Admiral, are the rates of pay to this group of retired enlisted men controlled by statute?

Admiral CONARD. They are; yes, sir.

Mr. UMSTEAD. As well as the provisions as to their retirement? Admiral CONARD. Exactly.

Mr. UMSTEAD. And it is automatic as long as the present law remains.

Admiral CONARD. That is correct.

Captain WILKINSON. In 1925 the 16-year privilege was canceled for anyone entering after that date, and the 20-year pay privileges were materially reduced. So that, the Bureau's estimates are that ultimately when all 16-year privileges have expired, and when the 20-year reduced pay comes into effect the total obligations under this law and this item in the appropriations will be reduced to less than $5,000,000.

LOSSES OF PROPERTY

Admiral CONARD. The next item is losses of property. This item covers reimbursement for property lost in marine or air disasters which cannot be replaced in kind.

Mr. PLUMLEY. Do I understand that it is now provided by statute that where an officer or an enlisted man in the Navy loses property in a marine or an air disaster which he cannot be charged as being responsible for in any way, and, therefore, there is no negligence involved, he is remunerated for that loss?

Admiral CONARD. It depends upon the conditions surrounding the ss. If the loss of property occurs on a ship regularly at sea, where it is clearly a naval affair he will be reimbursed.

Mr. PLUMLEY. If a naval officer were on duty and assigned to a Civilian Conservation camp, and the camp should be destroyed by fire, and all of his belongings were consumed by fire, under the statute would the Navy pay him anything?

Admiral CONARD. Well, that would be a very dubious case. I do not know.

Mr. PLUMLEY. Of course, he does not get it in the Army, and I wondered if he got it in the Navy.

Captain WATROUS. But that would not be a marine disaster.
Mr. PLUMLEY. It is limited to marine disasters?

Captain WATROUS. Yes, sir; to marine and air disasters.

Captain WILKINSON. And it is limited in payment only to the equivalent of his uniform clothing.

DEATH GRATUITIES

The next item is 6 months' death gratuity. This item covers the 6 months' pay to beneficiaries, officers, and men who die in the service.

On the death of an officer or enlisted man on active duty his dependents receive 6 months' pay. This item covers the expenditure for this purpose. Mr. CASEY. Admiral, is this 6 months' death gratuity given only to those who are 100 percent dependent or also to those who an partially dependent?

Admiral CONARD. They have to be sufficiently dependent to b reasonably so considered. We go into the details of the living cond: tions of the claimants, and if we find that they are in fact dependen upon the deceased then they get the gratuity, and if they are no they do not get it.

Captain WATROUS. Dependence must be proven.

Mr. CASEY. Determined by the amount contributed during the de cedent's lifetime?

Captain WATROUS. Yes, sir.

Mr. UMSTEAD. Each case in that instance would depend upon th facts and conditions surrounding the application for the gratuity? Admiral CONARD. Each case is examined in detail and the argu ment back and forth is considered.

Mr. UMSTEAD. Turn now to page 23 of the justifications, Admira

SUBSISTENCE OF NAVAL PERSONNEL

Admiral CONARD. Subsistence, $21,598,496. The subhead "Subsistence" of the appropriation covers the co of subsisting midshipmen, certain nurses, and all enlisted men: number of general courts-martial prisoners, and a number of Nav Reservists on active duty as shipkeepers, and so forth. The estimat average numbers for 1939 to be subsisted are as follows: