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amount of money needed for that purpose by multiplying the average unit cost by the number of ships.

Mr. UMSTEAD. Admiral, do you estimate the number of overhauls in the various categories of ships per year on the basis of your experience over a long number of years dealing with the same classes and categories?

Admiral Du BOSE. The number of overhauls is given to us by the Chief of Naval Operations, by what is known as the operating-force plan.

Mr. UMSTEAD. It is determined on the basis of the experience of the Navy Department as to need for overhauls?

Admiral Du BOSE. The Chief of Naval Operations proposes to make so many vessels available for overhaul during the fiscal year 1939, and it is definitely determined that in the month of July certain ships will go into navy yards and certain ships will go in in August, and so forth, and so we know what number of ships it is proposed to send in, and the various classes of ships.

Mr. UMSTEAD. The necessity of overhauling a ship is determined by a number of different things, such as the age of the ship, condition of the ship, the uses to which it has been put, and various other things?

Admiral Du BOSE. The amount of money to be spent on overhauling is determined by those things, but as a routine procedure the ships are made available for overhaul at certain specific periods of time.

Mr. UMSTEAD. Whether they need it or not?

Admiral Du BOSE. Well, they always need some overhauling, some work has to be done after they have been in service a few months. They always require bottom cleaning or something else, and the older ships may require many things. However, they are actually taken out of the fleet at certain predetermined times and taken to the navy yards, and we know the time, under the operating force plan, when they will be taken out of the fleet for overhauling.

Mr. UMSTEAD. Is that worked out so as to cause as little disputtion in the operating force plan of the Navy as possible?

Admiral Du BOSE. Yes, sir; based on a plan so as to interfere with the regular operation of the fleet as little as possible.

Mr. THOM. Do you have any standard time at which a battleship should be overhauled?

Admiral Dr BOSE. A battleship is supposed to go in once every 18 months for complete overhaul. A minor overhaul, consisting primarily of dry-docking for cleaning and painting, is given a battleship every 9 months.

Mr. THOM. Is that true of all the other types of ships?

Admiral Du BOSE. Yes; in general. For a few specific types of ships the overhaul intervals are somewhat longer and for a few other types, somewhat shorter.

Mr. THOM. Each type of ship has a period of time at which it should go into the dry dock for repairs?

Admiral Dr BOSE. Yes; each type has a definite time; but, of course, if there is a casualty, it would have to go in sooner.

Mr. THOм. Of course, you fix those standards in accordance with the amount of money that you have to spend for it?

OVERHAULING OF THE "OMAHA"

Admiral Du BOSE. Take a concrete example. The Omaha was on her way from the west coast around to the east coast, and she was to have regular scheduled work done, an overhauling, before going on a new assignment. She went aground and severely damaged the bottom. She went in not only for the regular overhaul work but for this additional work, and, as I stated to the chairman a little while ago, we have to get back some of this $500,000.

Mr. DITTER. By the way, what was the cost of the damage, Admiral?

Admiral Du BOSE.The estimated cost of damage for the Bureau of Construction and Repair was $190,000. That includes not only the damage work but the ordinary maintenance work. I think the damage was about $100,000.

Mr. DITTER. Who was in command of the Omaha? Would that be a matter within your knowledge?

Admiral Du BOSE. It happens to be a matter within my knowledge. Captain McLeary was in command.

Mr. SCRUGHAM. Admiral, if I recall, it was the airplane carrier Yorktown that had abnormally noisy gears. Is that under your jurisdiction?

Admiral Du BOSE. That is under the Bureau of Engineering.

Mr. SCRUGHAM. I think there was a tender, the contract for which was held up by the New York Shipbuilding Co., and for which Diesel engines could have been provided, and if I recall correctly, steam installation has been specified. That is also under the Bureau of Engineering?

Admiral Du BOSE. You are asking about something of recent occurence?

Mr. SCRUGHAM. Yes.

Admiral Du BOSE. It has nothing to do with this particular appropriation.

Mr. DITTER. Is a casualty such as the Omaha made a matter of inquiry by any board in the Department?

Admiral Du BOSE. The commanding officer of the Omaha was court martialed as a result of the Navy Department's action. That was a matter that was noted in the public press, the fact that there was a court martial and sentence imposed on both the commanding officer and the navigator of the Omaha.

Mr. DITTER. Is not the matter of an inquiry of that kind a matter of public record?

Admiral Du BOSE. The details are not a matter of public record, sir, but the force commander, the commanding officer of the force to which that ship belongs, submits a report to the Navy Department, and then proper action is taken. If the facts in the case seem to indicate necessity for some action, there is a board of investigation, followed by a court martial.

Mr. DITTER. Does that mean that the commanding officer is relieved of his command?

Admiral Du BOSE. That is something that does not directly come under the Bureau of Construction and Repair. As a matter of fact, he was found guilty by the court martial and relieved of his com

mand.

INCREASE IN UNIT-OVERHAUL COSTS OF SHIPS

Item 2 is increase in the unit-overhaul cost of ships, $25.000. We need an increased allowance for repairing and overhauling ships because of the method that we follow in estimating the funds. This Bureau's method of estimating the funds requested for the overhauling of ships is to base the estimate for the new year on the actual unit cost of overhaul for the last fiscal year in which return costs are available. For example, in 1937 the detail table accompanying object 1291 shows that 10.7 battleship overhauls were undertaken at a total cost of $1,033,706, or a unit cost of $96,609.

Therefore, the allocation for 1938 and the request for 1939 have been based on unit costs of $97,000. We know now that $97,000 is not sufficient for that purpose. It should be more than that. How much more we cannot tell you exactly, but in the following table show what has been requested by the various types of ships and what we were able to allow in 1938. These are not the absolute amounts, but the relative amounts.

This method of estimating overhaul costs is considered the best under usual circumstances. However, it is an inflexible method: the allocations are based on the amount of money which was available in the past rather than the actual current and prospective overhaul needs. The Bureau is faced regularly, therefore, with the necessity of eliminating highly desirable, and at times urgent items of repair because of lack of funds. This situation is best revealed by the following table, previously referred to, which contrasts the unit costs requested by the operating personnel with the unit costs which could be allocated:

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The weighted average shows that the requests for 1937 were u percent higher than could be allocated and for 1938 are about 15 percent higher than appears possible to allocate.

It is recognized that requests for funds emanating from the operating personnel will be greater than the absolute minimum required for satisfactory upkeep, but the fact is undeniable that, particularly in the case of auxiliary ships, additional funds for routi... repairs could be expended with great profit to the material condition of ships. Further, the Bureau is faced with the necessity of reducing the allocation of funds for ship repairs to a certain extent in ordr to effect the economy requested in the President's letter of June 29, 1937. The work thus deferred will become urgently necessary in th future. There is requested, in consequence, an increase of $25,00 which represents less than 0.4 of 1 percent of the funds now all.. cated for 1939 on the basis of 1937 costs, distributed over the vario types of ships.

INCREASE IN AVERAGE NUMBER OF SHIPS IN COMMISSION

The next item is brought about by an increase in the average umber of ships in commission. There are about 5.1 more ships in ommission in 1939 than there were in 1938. The increases for reairs to hull, repairs of equipment, and operating allowances for hips are as set forth below:

bjeet 1291

bject 1293

bject 15.

bject 30.

$54, 600

10, 510

85, 040

53, 800

Part of the expenditures under the above objects is dependent on he number of ships in commission and is classified as "Afloat Exenditures." The request for 1939 is based on the same unit costs s used for 1938. However, there will be an average of 327.9 ships n commission in 1939 compared with 322.8 in 1938. The increase of .1, using the same unit costs, results in the increases as shown above. Further data supporting these requests are set forth in complete letail in the justifications for objects 1291, 1293, 15, and 30.

URGENT ALTERATIONS NOT INCLUDED IN MAINTENANCE AND IMPROVEMENT

The next item is $100,000 requested for urgent alterations not inluded in the maintenance and improvement program.

The $100,000 requested is to provide for the urgent items not now pecifically covered by the present maintenance and improvement program for 1939. It is requested as an "additional recurring item" in the belief that some amount should be provided regularly for this purpose to meet needs which it is impossible to predict accurately. In view of amounts provided for alterations in the past, it is believed that $100,000 is a reasonable request.

Mr. UMSTEAD. What is the nature of the work you propose to do with that, Admiral?

Admiral Du BOSE. Well, the Bureau of Engineering, for example, has to put in an additional item on a ship to meet operating requirements. Funds for installing that item have to be provided by the Bureau of C. and R. They may cost $100 or they may cost $200, and there are a large number of miscellaneous minor items of that nature, primarily to permit the accomplishment of work under other bureaus, and in some cases to take care of their own work the Bureau of Construction and Repair has to provide funds for many such items. So that this is to take care of miscellaneous items of work for which other bureaus will have funds and we will have to contribute our share.

OUTFITS FOR ADDITIONAL NEW RECRUITS

Item 5 is money required for providing outfits for new recruits. This appropriation provides each new recruit with a bag and hamtock. In 1937, the following expenditures were made for this purpose: 15,484 recruits at a total cost of $84,571, or a unit cost of $5.46.

The present indications are that in 1938 and 1939 the unit cost will increase to about $6. Therefore, based on the number of new recruits provided for by the personnel plan, the following amounts

will be required: For 1938, 16,363 recruits, at a unit cost of $6, or a total of $98,000; for 1939, 19,842 recruits, at a unit cost of $6, or a total of $119,000.

This is an increase of 3,479 over the number of recruits in 1938. so that we want $21,000 more in 1939 than we have for 1938.

Mr. UMSTEAD. Why is it that you have to have new outfits? Why cannot the bags and hammocks be renovated and reissued?

Admiral DU BOSE. Well, they are practically worn-out by the time the men get through with them, and a new man coming into the Navy does not want to get a second-hand outfit. Pride, among other things, would preclude that, and then sanitary reasons would prevent it. As to renovating, some of the items could be renovated. In the case of a bag or a hammock, that could be scrubbed or washed, but, as a matter of fact, they are usually worn-out when a man gets through with his service.

Mr. UMSTEAD. Proper disinfection would eliminate any sanitary risk that might be involved.

Admiral DU BOSE. This appropriation provides a bag and hammock for each new recruit. That man gets it and keeps it throughout his enlistment, and it is pretty well worn-out by the end of that time. Mr. THOм. This would make allowance for increase in the Navy! Admiral Du BOSE. This sum of $21,000 is solely to take care of the increase in personnel. We have in the base $98.000, and that would provide outfits for the number of personnel in 1938, and it is estimated that there will be an increase of 3,479 in 1939.

Mг. THOм. You are asking for 5,000 more men in the Navy?

Admiral Du BOSE. This figure is prepared by the Bureau of Navigation. They tell us they expect 3,479 more recruits in 1939 than we had in 1938.

Mr. DITTER. Admiral, this unit cost contemplates an increase of about 10 percent over the previous cost, does it not?

Admiral Du BOSE. $5.46 was the unit cost in 1937. In 1939 we estimate the cost is going to be $6.

Mr. DITTFR. That is about a 10-percent increase, Admiral?
Admiral Du BOSE. Roughly, 10 percent; yes, sir.

REPRODUCTION OF CORRECTED DAMAGE-CONTROL DIAGRAMS

Item 6 is a reproduction of corrected damage-control diagrams, $30,000. These are furnished by the Bureau of Construction ar! Repair.

Part of the damage-control information furnished to ships is er bodied in lithographed diagrams. In order to maintain the val of the diagrams they must be revised to embody the changes resulting from alterations. The total amount expended in 1937 for this work was $34.000. It is planned to expend a total of $33,000 in 1938.

The base includes $8.000 for this purpose. The amount requestei here provides for an anticipated expenditure of $38,000.

Inasmuch as this work is recurring and it is anticipated that the expenditures will remain about the same in future years it is being requested as an additional recurring item instead of as a nonrecurri item as heretofore.

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