therefore that half of these 1,800 remain on active duty, while half, or 900, transfer. Of these 900, mortality tables show 800 will live throughout the next 10 years. Each annual group will then, through the 10 years on the reserve list, average 850, or there would be 8,500 thereon. Discounting losses for discharge for physical disability, as required by the law, about 8,000 would remain in a pay status. As previously cited, the maximum pay in this status is $756 per year, which would total approximately $6,000,000. Allowing for men transferred at lower rates of pay, the figure of $5,000,000 can be estimated. EFFECT OF PREVAILING SYSTEM UPON NUMBER OF NAVAL RESERVES AND EFFICIENCY OF THE FLEET Mr. UMSTEAD. Captain, it is true, is it not, that men who serve an enlistment, or one or more enlistments in the Navy and who pass from that service back into civil life, constitute a very important part of the so-called Naval Reserve in the country, whether they actually enter the Reserve force or not? Captain WILKINSON. They form an entirely intangible part, Mr. Chairman, but, of course, we feel that the natural patriotism of the American who has served in the Navy would bring him back to the colors if and when necessary. There may be some disgruntled men, but, in the main, we hope and believe that former Navy men. most of them, would come back. Mr. UMSTEAD. Then, if that be a correct assumption, the system now prevailing has a tendency to decrease the number of available naval reservists, rather than to increase it, does it not? Captain WILKINSON. Yes: but at the same time it increases the efficiency of the fleet, because we are enabled to keep in the fleet trained men for a very much longer period of time. You will appreciate, of course, that the British first enlistment is for 12 years. Mr. UMSTEAD. But it is also true that the largest percentage of your retirements is between the 20- and 30-year period of service, is it not? Captain WILKINSON. Not at present. At present the majority who are leaving the service on a pay status are leaving after the sixteent! year rather than after 20 years. Of course, the large majority of those who leave the service do not leave on a pay status, that is, the majority leave before 16 years. Mr. UMSTEAD. Most of those who stay in the service as long as 12 years complete the 20-year period, do they not? Captain WILKINSON. I should say not, sir. A great number. I think, will go out after 16 years of service. Mr. UMSTEAD. No substantial percentage of them? Mr. UMSTEAD. No substantial number go out between the sixteenth and twentieth years, do they, Captain? Captain WILKINSON. A great number, since they are all men who were in the Navy prior to 1925 and hence eligible for transfer on s pay status after 16 years' service. CHANGE OF TERMS UNDER WHICH TRANSFERS ARE MADE FROM NAVY TO NAVAT RESERVES Mr. Tuoм. Did I understand you to say the other day that the terms on which a man transfers from the Navy to the Naval Reserve after 20 years of service had also been changed? Captain WILKINSON. Yes. Captain WILKINSON. Any man entering after the date of the act f February 28, 1925 enjoys less privileges of transfer than those ho entered before. He may not transfer after 16 years of service, ut must wait until 20 years, and when he transfers after 20 years of ervice he gets only 40 percent of his total pay instead of 60 percent f his total pay. Mr. THOM. Is that the chief and only change? Captain WILKINSON. And, further, he is subject to discharge if he evelops before 30 years a physical disability which would prevent is performing duty in time of war. At the present time a man so hysically disabled and retired short of 30 years' service would be etired, would continue on a pay status, and would still receive the dditional monthly allowance when he finally arrived at the 30 years. That is the only other change. Mr. THOM. As I understand it under the new provisions of the law shen he retires after 20 years' service he would only get 40 percent of his base pay plus $15.75. Captain WILKINSON. Forty percent of the base pay right away, ind at the end of 10 more years the $15.75 allowance, and the permaent additions, which is the money he had received previously as additional for reenlistment. On retirement, provided he had not een discharged for physical disability meantime, he would thus inally get approximately equal pay to those men who transferred nder the old provisions of the law. The controlling law is given in ection 23 of the Naval Reserve Act of February 28, 1925. TUESDAY, DECEMBER 14, 1937. REPAIR AND UPKEEP OF THE FLEET BUREAU OF ORDNANCE STATEMENT OF REAR ADMIRAL W. L. FURLONG, CHIEF, AND COMMANDER B. S. GANTZ, FINANCE SECTION GENERAL STATEMENT Mr. UMSTEAD. Gentlemen, we shall begin this morning with the Bureau of Ordnance. We have present Admiral Furlong, the Chief of the Bureau. Admiral, you may proceed to make your general statement, if you will, sir. Admiral FURLONG. Wery well, sir. The Bureau of Ordnance, under the direction of the Secretary of the Navy, is charged with and responsible for the design, manufacture, procurement, maintenance, issue, and efficiency of all offensive and defensive armament-including armor, torpedoes, mines, depth charges, pyrotechnics, bombs, ammunition, war explosives, war chemicals and, except as specifically assigned to other cognizance, optical and other devices and material for the control of guns, torpedoes, and bombs. It is charged with the upkeep and operation of the following naval ordnance establishments and with their repairs, except as excluded in article 484 of the Navy Regulations: (a) Naval gun factories. () naval ordance plants, (c) naval torpedo stations, (d) naval proving grounds, (e) naval powder factories, (f) naval ammunition depots. (g) naval magazines on shore, and (h) naval mine depots. PURPOSE OF THE APPROPRIATION "ORDNANCE AND ORDNANCE STORES" This is the maintenance appropriation of the Bureau of Ordnance, providing funds for all of its activities, except new construction. modernization of vessels, and the salaries of civilian employees within the Bureau, which are provided for by special appropriations. In general, this appropriation is used for the purpose, manufacture, maintenance, overhaul, and repair of ordnance material afloat and ashore, and for the maintenance and operation of naval ammunition depots, torpedo stations, mine depots, proving grounds, powder factory, gun factory, and ordnance plans. ESTIMATES, 1939 The estimates for 1939 and the allocation of the appropriation for 1938 are in certain cases based upon the obligations and expenditures for 1937, which are the latest figures available, and, therefore, provide the most reliable index of estimated future expenditures. The 1939 estimates also take into consideration: (a) Operating force plan: That part of the operating force plan which determines the numbers and types of ships and aircraft to be in commission during the fiscal year forms the basis of estimate for ships' quarterly allotments and target practice requirements for both ships and aircraft. (b) Material maintenance and improvement program: The program promulgated by the Chief of Naval Operations and approved by the Secretary of the Navy sets forth material improvements and alterations to naval vessels to be undertaken during the fiscal year That part of the program which affects ordnance material is included in these estimates. (c) Plant appliances, machinery, and machine tools: The Naval Gun Factory and the Naval Torpedo Station, Newport, are working three shifts, which results in unusual wear and tear on machine tools. The estimates include a normal replacement of worn out equipment. (d) Availability of ships at navy yards: Availability of ships at navy yards promulgated by the Chief of Naval Operations forms the basis of estimates for the overhaul of ordnance outfits of ship during regular overhaul periods. (e) Modernization of mines and torpedoes: The Bureau of Oni nance has undertaken a program of modernization of torpedoes at mines where it is in the interest of economy to do so, performing s certain amount of modernization each year. (f) Ammunition shortages: The estimates include funds for a par tial filling of ammunition shortages. (g) Research, experiment, and development: Only by constant re search and experiment can the best in ordnance equipment, bot offensive and defensive, be developed for new construction, and is the duty of the Bureau of Ordnance to explore this field to the utmost. (h) Enlarging the torpedo supply: The volume of construction of destroyers and submarines has brought about an acute situation in the manufacture of torpedoes. The sole source of supply is the Naval Torpedo Station, Newport, R. I., there being no commercial source. Production is so far in arrears of requirements for new construction that it becomes necessary to reopen the torpedo shop at Alexandria, Va. This is the quickest means of meeting the increased production desired. The building is already built at Alexandria, which means that this is also the cheapest way of meeting the demand. An appropriation is needed for new machine tools and to replace some equipment such as machines and air compressors that on closing the Alexandria station had been moved to Newport and are now in operation there. NEWPORT NAVAL TORPEDO STATION EXTRA COMPENSATION TO EMPLOYEES Mr. UMSTEAD. Admiral, with reference to your statement as to the three shifts working at the Newport Naval Torpedo Station, is there any extra compensation for other than the regular shifts? Admiral FURLONG. There is extra compensation of 6 cents per hour for employees working between 6 p. m. and 7 a. m. Recent laws limiting work hours to 40 per week have operated to eliminate the 50 percent extra which is allowed by law for overtime work which is prohibited by Navy departmental regulations except in extraordinary emergency. Mr. UMSTEAD. Why is the local gun factory working extra shifts now? Admiral FURLONG. For two reasons. There is the urgent demand for guns and equipment for the ships that are under construction and for the new ships that have been authorized. The guns have to be built for them. The other reason is a lack of space in the shops. In other words, the tools are worked to their utmost in order to meet the demand. There are not enough shops, or not enough room in the shops, or enough machines, so as to employ all of those men simultaneously in a one day shift. Mr. UMSTEAD. Is the local gun factory now working three shifts? Admiral FURLONG. Yes, sir. Mr. UMSTEAD. Is it now able to meet the normal demands? Admiral FURLONG. It is pretty had pushed in some things. There are certain items and processes that have to be carried on continuously. A little over half of the employees work on the one day shift; the others on two night shifts. PROPOSED REOPENING OF TORPEDO SHOP AT ALEXANDRIA, VA. Mr. UMSTEAD. With reference to the reopening of the torpedo shop at Alexandria, Va., I understood you to say a moment ago that the present facilities at Newport, although they are working three shifts a day there, are not sufficient to meet the requirements of the Navy Department. Admiral FURLONG. That is right, sir. Mr. UMSTEAD. How long has the torpedo shop at Alexandria been closed? Admiral FURLONG. It was closed June 30, 1923. Mr. UMSTEAD. Does the Government own the property on which the shop is located? Admiral FURLONG. Yes; it does own it. And when I say the shop was closed, I mean it was closed for the manufacture of torpedoes. It has been running ever since 1923 in a reduced status. Mr. UMSTEAD. For what purpose? Admiral FURLONG. For the purpose of modification of old torpedoes and for the upkeep of torpedo tubes and torpedoes that were stored there. The shop has been employing 26 men on this work. Mr. UMSTEAD. Is there any machinery in the shop at Alexandria which can be used if it is reopened, or will you have to refurnish it completely with equipment and tools? Admiral FURLONG. On account of the advances that have been made in tools since 1922 and 1923, and even before that when the tools were put in, we would have to put in a newer type of machine tool in order to get the production just as every year at Newport we make some replacements with the newer type of tools. At Newport we spend $100,000-and we have for a number of years-on the latest automatic tools. And that would have to be done at Alexandria. That was the reason for the amount of $1.277,000 that we asked for the torpedo shop at Alexandria. Most of that is for tools, because we have the building already there. Mr. UMSTEAD. I believe that we shall come to that item later on in the break-down for this Bureau, Admiral. Will you insert pages 4, 5, and 6 of your justification in the record? Admiral FURLONG. Yes, sir. 30. Equivage of naval vessels. 34. Reserve stores on hand (equip- Total estimate or appropriation.... Estimate Commit Bureau 'ee alloca Difference allocation, 1938 Expendi- Exper ture, 1937 ture, imàr 1,100,000 4,053, 900 966, 700 4,058, 700 197,800 176, 500 +133, 300 4,052. 200 3,058.000 +994, 200 26, 880,000 24, 429, 800 +2, 450, 200 24,429, 800 21. 697, 658 21, 655, One ITEMIZED STATEMENT OF ESTIMATE NOTE.-Items marked (*) on pages 33 and 44 have been set up either in whole or in part as an administrative reserve in accordance with the letter of the President dated June 23, 1937. The total reserve under this appropriation is $1,797,000. |