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JUSTIFICATION OF ESTIMATE

938 appropriation -

$20,000 1939 estimate (no increase)

20,000 * Base.

For expenses of officers and midshipmen on patrol duty ashore and entitles them to not to exceed $7 per day.

CHANGE OF LANGUAGE Mr. UMSTEAD. Admiral, on page 62 of the committee print you are requesting a change in language. Explain that, please.

Admiral CONARD. The Chief of Naval Operations has requested that the naval governors of Guam and American Samoa be supplied with two members of the messmen branch, each, in order that they may properly carry out their required official functions, an increase of four.

The Chief of the Bureau of Ordnance has requested that the following activities be supplied with one member of the messman branch, each : Naval Ammunition Depots, Iona Island, N. Y.; Cahu, Hawaii; Fort Mifflin, Pa.; St. Juliens Creek, Va.; Puget Sound, Wash.; Mare Island, ('alif.; Balboa, Canal Zone; Cavite, P. I.; Hingham, Mass.; Naval Powder Factory, Indian Head, Md.; and Naval Torpedo Station. Newport, R. I.; an increase of in, or a total for the two of 15.

Mr. UMSTEAD. On page 66 of the committee print you are request ing a change of language to make the appropriation applicable to steamship and airway guides. Explain that, please.

Admiral ('ONARD. This will enable the Bureau to purchase steamship and airway guides as well as railway guides, all these being equally necessary in the conduct of the business of the Bureau. The steamship guides cost $1,000 and the airway guides $500 per year.

Mr. UMSTEAD. On page 67 you are asking that the appropriation, "Pay, subsistence, and transportation, Navy," include members of the Naval Reserve when called to active duty in time of war or during the existence of a national emergency declared by the President.

Admiral CONARD. The basic Naval Reserve Act of February 28, 1925, authorizes, in section 9, the ordering of officers and men of the Naral Reserve to active duty in time of war or national emergency.

Under the present wording of the appropriation act no funds are actually available for the payment of Naval Reserves if called to active duty in a national emergency.

The Naval Reserve section authorizes pay and allowances for officers and enlisted men on training duty and for officers and enlisted nien on active duty in connection with the instruction, training, and drilling of the Naval Reserve. It also limits the employment on active duty of officers of the Naval Reserve above the grade of lieutenant.

The appropriation “Pay, subsistence, and transportation" applies only to the regular personnel except with respect to the specific appropriation for subsistence, which is, by its wording, also available for subsistence of the Naval Reserve "during period of active service."

The amendatory language proposed above will provide for the payment from the general appropriation for the Regular Navy, that is, "Pav, subsistence, and transportation,” of Naval Reserves on active duty in an emergency, following the precedent established for their payment from this appropriation during the World War.

MONDAY, DECEMBER 13, 1937. MAINTENANCE, BUREAU OF SUPPLIES AND ACCOUNTS

Mr. UMSTEAD. Gentlemen, we will begin with Maintenance, Bureau of Supplies and Accounts, on page 71 of the committee print of the bill.

GENERAL STATEMENT

Admiral CONARD. The amounts appropriated for maintenance, Bureau of Supplies and Accounts, have, in the past several years, lagged behind appropriations for the Navy as a whole, in spite of the fact that the work to be done fluctuates in direct ratio with the total funds availabel for general naval expenditures, and, consequently, with the numbers of military and civil personnel, the tonnage of vessels in commission, the numbers of aircraft in service, and the shore establishments development program. Comparison of the relation between “Maintenance, supply and accounts” and the total appropriations from the fiscal years 1932 to 1938 is shown on graph A, on page M-13.

The appropriation for the entire Navy for 1938 was $527,829,458. an increase of 46.7 percent over the $359,642,104 appropriated for 1932.

Mr. UMSTEAD. Admiral, at that point I wish to call your attention to the fact that in practically every instance the Department uses a figure in designating the amount of the 1938 appropriation. which includes the trust funds, whereas this committee in presenting the bill and handling the matter in Congress uses the net figure exclusive of the trust funds. Of course, the trust funds are in no way an actual appropriation of money by the Congress for the use of the Navy. They are only funds for which the Government, at the moment, is legal custodian.

Admiral CONARD. Yes, sir.

Mr. UMSTEAD. As a matter of fact, the appropriation for 1933 was $526,258,808.

Admiral CONARD. Yes, sir.

Mr. UMSTEAD. I am calling your attention to that, not that it makes any material difference so far as your use of the figures is concerned in this connection, but in order that the record may be kept straight and in agreement with the facts and figures used by our committee in presenting the bill and getting it through the Congress at the last session.

Admiral Conrad. The “Maintenance, S. and A.," appropriation for 1932 was $10,100,000, and that for 1938, $9,313.180, a decrease of is percent. Of the objects of expenditure under the appropriation, shipments of freight must be made within the limits of the appropriation as required, and it is therefore necessary to keep funds available for shipments at the expense of other objects of expenditure. The result has been a failure to replace worn equipment ashore, to disapprove requisitions for new equipment which shore activities consider necessary for the proper performance of their work, to deny employees the privilege of taking all of the leave to which they are entitled, and to delay or neglect work which should be performed, such as inventories of stock on hand and work on preservation of irticles in store. In spite of these efforts, it has been impossible to nake all required shipments with the funds available. CLASSIFIED LABOR. GROUP IV-B EMPLOYEES

Realizing the gravity of the existing situation, the Secretary of he Navy has directed the Bureau of Supplies and Accounts "to provide in appropriation Maintenance, s. and A.,' sufficient funds to keep pace with the growing Navy."

The appropriation “Maintenance, Bureau of Supplies and Accounts,” provides the funds for the field activities which enable the Bureau to perform its functions, as outlined in my opening statement.

The projects and purposes for which expenditures are made under this appropriation are:

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The necessity for these increases is due to two factors, namely:

(a) The increased demands of the Navy for the services chargeable to this appropriation, as reflected in increases of officers and men, tonnage of vessels in commission and aircraft in service, volume of stores handled and civil employees at shore stations; (b) the necessity for additional funds to bring the activities under this appropriation into step with the activities of the Navy as a whole. It is requested that this be accomplished by making $500,000, representing these “nonrecurring” items, available immediately.

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Distribution of estimate

Object

14

16 (1)
16 (2)

14 (1)
16 (1)

(2)

Labor, classified, group IVb: Maintaining and op

erating shore stations
I, II, III, and IVa:

Maintaining and operating shore stations
Miscellaneous operating charges, general
Miscellaneous operating charges, household

effects.

Tctal labor, miscellaneous
Materials and services ashore:

Maintenance and operation, shore stations.
Miscellaneous operating charges, general..
Miscellaneous operating charges, household

eflects
Miscellaneous operating charges, freight
Additions and improvements shore stations

Total material and services.
Transportation by common carrier, household

eflects: Transportation of things.
Transportation by common carrier, equipage and

supplies: Transportation of things.
Equipment and supplies for ships and miscellaneous
activities:

Repairs to ships' equipage.
Maintenance and operation, fleet
Equipment of vessels.

Total equipment and supplies

(3)
32

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07

07

12
15
30

Admiral CONARD. Project 1, classified labor. Taking up the first em, $221,760, the increase for classified employees is needed on acount of five factors, as shown on pages M-36 to M-41 of the justificaion: hange in policy in air stations and submarine bases outside the continental United States to man 7 key positions with United States citizens (p. M-38)----

$13, 800 pening naval air station, Alameda, Calif., 10 positions (p. M-38) 19, 360 pening naval torpedo factory, Alexandria, Va., 4 positions (p. M-38) -

7, 200 ncreases work at navy yards and air stations, due to increases in size of ships, 51 positions (p. M_39) --

81, 400 Lecumulation of annual leave due to the demands for services which have prevented greatly leave as it accrues--services of temporary employees (p. M-40)

100, 000

Total

221, 760

AIR STATIONS AND SUBMARINE STATIONS OUTSIDE CONTINENTAL UNITED STATES

Admiral CONARD. Taking up the first factor, change in policy in ir stations and submarine bases outside the continental United States o man key positions with United States citizens, the seven key positions are for the fleet, air, and submarine bases at Coco Solo, ĉ. Z., and Pearl Harbor, Territory of Hawaii. Some years ago the Department directed that key positions ashore at these activities be filled by enlisted men. Because of frequent changes of personnel they proved unsatisfactory. The Department has now authorized this work to be done by American citizens.

Mr. UMSTEAD. What is the line of work which they do, Admiral ?

Admiral CONARD. Supply, accounting, and disbursing activities at these two stations, Coco Solo and Pearl Harbor.

Mr. UMSTEAD. What compensation do you propose to pay these seven men ?

Admiral CONARD. At the fleet air base, Coco Solo, 2 CAF grade 5 employees at $2,000, or a total of $4,000, and at the fleet air base, Pearl Harbor, two of the same rating, the same amount, $4,000, and at the submarine base, Coco Solo, there are two of the same type, the same amount, and one CAF-4 at $1,800, making a total in all of $13,800.

Mr. UMSTEAD. As I understand it, this work is now being done by enlisted men?

Admiral CONARD. I am not sure whether enlisted men are still there or not. I think the work is still awaiting the appointment of these additional people.'

Mr. UMSTEAD. If it is important work it is being done by someone? Admiral CONARD. It is not being done satisfactorily. Captain WatRots. It is being done in part by the enlisted personnel.

Commander HULLFISH. We have some positions filled now by American citizens, but we need seven more, in order to fill all of the necessary positions.

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