FOOD-INSPECTION SERVICE BY DEPARTMENT OF AGRICULTURE This subhead covers miscellaneous charges at yards and stations for material and supplies to do such work as repairs to equipment in tore, supplies issued to ships under construction, and services outide of yards, such as rentals of buildings, removal of garbage by ontractors from ships where other garbage-removal service is not available, and food-inspection service by the Department of Agri-ulture. Increases. The only item for which an increase has been requested s inspection service by the Department of Agriculture. It is estimated that the amount necessary will be $87,000 in 1939. The amount available in the 1938 appropriation is $83,640, but the actual harges made by the Department of Agriculture for the service in 1937 were $87,533.09. Rounding off this figure to $87,000, this will cover merely the same service as is now being rendered by the Department of Agriculture. The increased personnel of the Navy will require at least this service. The increase over the base is $3.360. Mr. UMSTEAD. Admiral, I believe it is the policy of the Navy Department, wherever it is reasonably possible to do so, to have the Department of Agriculture, through its regular Inspection Division, inspect foods and supplies purchased by the Navy Department? Admiral CONARD. That is correct. Mr. UMSTEAD. For that service you pay them, and this is the appropriation which provides for that payment to the Department of Agriculture? Admiral CONARD. That is exactly correct. Mr. UMSTEAD. I believe that the record discloses that they list that receipt in their presentation for the inspection agency of that Department when they request their annual appropriation? Admiral CONARD. They do. Mr. UMSTEAD. That results in better supplies and safer purchases and is a really helpful service to the Navy Department? Admiral CONARD. We have found it very satisfactory, and we would hot consider anything else. Mr. UMSTEAD. It saves you a great deal of money? Admiral CONARD. Yes, sir. MATERIAL TO PACK AND CRATE HOUSEHOLD EFFECTS This covers material expended at navy yards and stations in packag, crating, and handling household effects of personnel entitled to ich service. It is the material applied to the same jobs of packing discussed under the heading of "Labor, skilled and unskilled." In 1937, with 29.370 persons entitled to the service, 4.849 lots were packed by yards, material costs being $53,421, an average of $11.01 plus per lot. Based on these averages, in 1939 the 5,668 lots to be packed for the 34.332 persons entitled to the service will require material estimated at $62.400. This is an increase of $11,400 over the 1938 allocation of $51,000. Mr. UMSTEAD. That is a companion item to the one for additional employees requested for packing and crating household effects? Admiral CONARD. That is it. They go hand in hand. INCREASED COST OF CONTRACT STEVEDORING The next is increased cost of contract stevedoring for 1939 shipments. Mr. PLUMLEY. I would like to have a statement of the reason for that additional cost. Admiral CONARD. This covers the cost of stevedoring service furnished by contractors at places where yard and station labor is not available. It also covers postage for parcel-post shipments. There was expended for this purpose in 1937 the sum of $101,005, The labor situation on both coasts increased the costs in 1937 materially over 1936, and contracts in force for 1938 show a still further increase. The following table illustrates these increases for class A cargo: Applying the increased costs to the 1939 situation, it is estimated that there will be required for that year an increase over the 193 allocation of $87,733 amounting to $14,677. Mr. PLUMLEY. That is $14,677 additional cost for handling the necessary additional material for packing and crating by reason of an increase of 1,500 people? Commander HULLFISH. No, sir; it is due entirely to increased stevedoring rates at the various points where we have commercial contracts. Mr. PLUMLEY. Incident to increase in wages? Commander HULLFISH. Yes, sir. Mr. PLUMLEY. Or pay to the employees and the stevedores? Admiral CONARD. Yes; it is what we pay the stevedores, and their reason for raising the rates is increased wages and expenses. Mr. THOM. You pay the contractors or the stevedores? Admiral CONARD. The contractors. Mr. THOм. And they, in turn, claim that the increase is due to the increase in wages? Commander HULLFISH. These are based on contracts actually in effect for the present fiscal year, which indicates a total increase on the same basis of tonnage of $13.194, if we handle no more than we d last year. We estimated a balance of $1,500 more to cover the increasi parcel-post shipments to take up any slack there might be there, and that is why we ask for $14,667. Mr. PLUMLEY. Does the matter of strikes ever increase the cost to the Navy? Commander HULLFISH. Yes, sir. At San Pedro the Navy had a contract for stevedoring which went from $1.55 a ton for the fiscal year 1937 to $2.10 a ton for the fiscal year 1938. Captain WATROUS. Those are actual contract prices. Admiral CONARD. These are contracts that we make with the steve dores after competitive bidding. It is the best price that we can get ADDITIONAL IMPROVEMENTS, SHORE STATIONS I will take 6 and 7 together. JUSTIFICATION The purchase value of the equipment in use in supply, accounting, disbursing, and other activities ashore required to be replaced from this appropriation as of July 1937 was as follows: Office equipment: Typewriters.. Adding machines, calculators, etc.. Other office devices, multigraphs, time clocks, check writers, etc----- Safes, cabinets, files, etc__ Total, office equipment_ Storehouse equipment: Scales, trucks, saws, shelving, stacking machines, box-making machines, skid platforms, etc-- Total $180, 511.00 474, 917.50 129, 033. 15 489, 668.92 1, 274, 130. 57 1.502, 807. 39 2,502, 807.39 The life of the office equipment averages about 10 years. The life of storehouse equipment is greater, about 20 years. It is estimated that a proper replacement program would involve a minimum annual expenditure of approximately $200,000 for this purpose at the present size and number of shore stations. The increase requested is $120,000, of which $20,000 is required as a recurring item to bring the amount allowed for annual replacements and additions into line with the requirement of $200,000. That is a little involved. We have spent in the 1938 appropriation $179,000, or we have available at least $179.000, and we are asking for $20,000 to bring next year's estimate up to $200,000 as being the proper annual replacement charge for all of this equipment, and then we want $100,000 to bring back into shape the equipment which has been neglected in late years. TRANSPORTATION OF HOUSEHOLD EFFECTS Two factors influence the requirements under this item, the increased cost due to the increase of the number of persons entitled to the shipment from 32,860 in 1938 to 34,332 in 1939, and the delay in shipments due to lack of funds in 1938. 1. Based on the 34,3332 entitled to shipment in 1939, there will be 11,113 shipments involving 14,214 tons to be shipped commercially. Cost of such transportation plus contract packing at the 1937 average of $71.86 per shipment per ton will be $798,585, an increase over the 1938 base of $142,095 (p. M-24, 25) -- 2. Due to lack of funds, it is estimated that it will be necessary to defer from 1938 to 1939, 192 shipments of 246 tons, at a cost of $13.855 (p. M−26, 27)__ Total. $142,035 13. 855 155, 950 Mr. UMSTEAD. Admiral, considering both items together, do you, as far as possible, use naval transports to transport the household effects of officers and enlisted men when they change station under orders of the Department? Admiral CONARD. We do. Captain WATROUS. And also Army transports. Mr. UMSTEAD. When you use the Army transports, as indicated by the captain, do you pay for the service? Admiral CONARD. We do not. Mr. UMSTEAD. Then, such space as may be available in the Army transports may be used without cost by the Navy Department? Admiral CONARD. That is correct. Mr. UMSTEAD. Of course, I take it you cannot use that space except in such cases as where it is not needed by the War Department itself? Admiral CONARD. Yes, sir. Mr. UMSTEAD. How many naval transports are now on active duty! Admiral CONARD. Two: That is, two passenger transports and two cargo-carrying transports. Mr. UMSTEAD. The passenger transports also carry freight? Mr. UMSTEAD. But the freight transports do not carry passengers? Admiral CONARD. Not usually, but sometimes they do. Their pas senger facilities are decidedly limited. Mr. UMSTEAD. Which gives you two for the sole purpose of transporting freight, and also enables you to transport a considerable amount of freight on the passenger transports? Captain WATROUS. That is quite limited on the passenger-carrying vessels. Mr. UMSTEAD. I believe the officers and men entitled to this service are regulated by statute? Captain WATROUS. That is correct. Mr. UMSTEAD. The weights, however, to which each officer is entitled are determined by the regulations of the Navy Department! Admiral CONARD. Acting in conjunction with the War Department. They have a common system of prescribing those regulations. Mr. UMSTEAD. And it is graduated according to rank? Admiral CONARD. Yes, sir; it is. Mr. UMSTEAD. From the petty officer on up? Admiral CoNARD. To admiral. Mr. UMSTEAD. All of the classifications of those entitled to the service under the act? Admiral CONARD. Yes, sir. TRANSPORTATION OF EQUIPAGE AND SUPPLIES The transportation of equipage for ships and stations is likewise increased by two factors. The first consideration is the increase due to the quantities of material to be shipped because of the greater tonnage of vessels and numbers of aircraft in service. This is an increase of 5 percent over the 1938 appropriation. The second is the cost of shipments to be made in 1939 which could not be made in 1937, and cannot be made in 1938, due to lack of fundi This is the same bringing forward item that we have been considering before. Mr. THOM. You do not mean by that that you had shipments to make in 1937 that you deferred until 1939? Admiral CONARD. No, sir: but we deferred from the end of 1937 to the beginning of 1938 everything we possibly could hold out. That, of course, went out of the funds for 1938. Then at the end of 1938 we expect to have to repeat the same process, carrying it forward into 1939. EQUIPAGE AND SUPPLIES FOR SHIPS AND MISCELLANEOUS ACTIVITIES Project 6. Funds under this project are included in objects 12, "Ships equipage," and 30, "Equipment of vessels," for which no increases are requested in 1939, and in 15, "Maintenance and operation of the fleet," for which an increase of $127,565 is required. This increase is based on the following factors: 1. The original outfits of consumable supplies for the 28 ships to be commissioned consist of the complete equipment of mess and galley gear, stationery, and other supplies needed to place the ships in operating status. This requires about twice the annual operating costs for the same supplies (p. M-45). 2. Ships to be commissioned in 1939 are 28 in number, and will require $31,648 for their maintenance (p. M-44). 3. In 1938. 13 vessels scheduled for commissioning in 1937 will be placed in commission. The commissioning outfits of these ships will cost $36,125, which will result in a delay in supplying other items to vessels from 1938 to 1939 (p. M-45)-- $59, 792 31, 648 Total_____ From this total of $127,565 is subtracted $56,676 representing— Total 36, 125 127, 565 9.076 47, 609 56, 676 These nonrecurring items reduce the amount of the 1939 increase to $70,889 over the 1938 appropriation. Mr. UMSTEAD. Admiral, if I understand it, the items referred to in this project have to do with the things which your Bureau will have to supply to the new ships to be commissioned during the year 1939 in excess of the amount estimated for the same purpose in 1938? Admiral CONARD. That is right. Mr. UMSTEAD. Except as to necessary equipment which the Bureau of Supplies and Accounts has to maintain on vessels in the fleet to do its work, what is included in these items? Captain WATROUS. Supply of all typewriters for ships and stationery for the ships officers listed in the appropriation bill which have no connection with work under the cognizance of the Bureau of Supplies and Accounts. CHANGE OF LANGUAGE Mr. UMSTEAD. On page 71 of the committee print you are asking for a change of language which will permit you to have $500,000 of the appropriation. "Maintenance, Bureau of Supplies and Accounts," immediately available. I believe your explanation of that appears on page M-2-3 in folder 8. Admiral CONARD. That is right. Funds available in 1937 were insufficient by $406.100 to carry out the functions to be performed under this appropriation as has been shown in the detailed justification of the estimate: the funds appro |