of October 30, 1937, an overexpenditure of the present limitation, amounting to about $234,000 was indicated, even though no further vacancies were filed Due to the filling of vacancies in the meantime, the indicated overexpenditure is higher at the present time. If the limitation is not increased, it will be necessary to furlough employees to reduce expenditures. 5. The Bureaus recommend that wording be inserted in the first Deficiency Act to increase the 1938 limitation from $4,570,000 to $5,035,000. An increase of the 1938 limitation will not require additional funds to be appropriated. [Enclosure Al Statement of group IV (b) employees-Replacement of naval vessels, construction and machinery EMPLOYEES UNDER COGNIZANCE OF BUREAUS OF CONSTRUCTION AND REPAIR AND ENGINEERING, STATUS AS OF OCT. 30, 1937 Statement of group IV (b) employees-Replacement of naval vessels, construction and machinery-Continued EMPLOYEES UNDER COGNIZANCE OF BUREAU OF SUPPLIES AND ACCOUNTS STATUS AS OF NOVEMBER 30, 1937 APPROPRIATION "REPLACEMENT OF NAVAL VESSELS, CONSTRUCTION AND MACHINERY" Estimated group IV (b) expenditures, fiscal year 1938 (a) Actual expenditures up to Oct. 30, 1937, as recorded by Form N. S. A. 568: July August September- $392, 524 392,655 395, 739 399, 045 $1,579, 963 (b) Estimated expenditures for the remainder of the year for em- 1. Employees under cognizance of bureaus of C. & R. and 2. Employees under cognizance of Bureau of S. & A.: The 2,908, 856 315, 098 (e) Subtotal, assuming that no authorized vacancies were filled from Oct. 30, 1937---- (d) Estimated expenditures for authorized vacancies filled from Employees under cognizance of bureaus of C. & R. and Eng. (e) Subtotal (f) Estimated additional expenditures if administrative promo- If all promotions are allowed and are made effective as (g) Estimated additional expenditures for S. & A. employees in- 4,803, 917 246, 106 5,050, 023 21, 970 25,000 (h) Subtotal___. 5,096, 993 Estimated group IV (b) expenditures, fiscal year 1938—Continued (i) Deduct lapses: The normal experience indicates lapses of about of about 2 percent of the pay roll. On this basis the lapses to be expected from Oct. 30, 1937, would be approximately 2 percent of item (b) (1) on the assumption that S. & A. will make expenditures equal to their allotment_- (j) Grand total estimated expenditures, assuming that (f) and (g) eventuate_-_. -$61.96 5,035, 0 If the Committee or if Congress is interested in obtaining what 11. my opinion would be more accurate cost records of building ships. some change in the present method and some change in the prese R. N. V. limitation is required. I bring that question up for consideration. Mr. DITTER. You mean it would give you a yardstick to make a comparison with private shipbuilding costs? Admiral Du BOSE. It would facilitate the Navy Department's efforts to get that information; yes, sir. We can get the information today, but it is not being done in the simplest and most satisfactory way. PERSONAL SERVICES, ARMOR, ARMAMENT, AND AMMUNITION Admiral FURLONG. The limitation on the amount that may be expended for the pay of group IV (b) employees in the field service is $1,450,000, computed as follows: Limitation authorized for 1938 Additional required to provide for anticipated over-obligation of $27,000; continuation of authorized N. I. R. A. vacancies and such additional employment as may be required for proper administration of the appropriation estimated at $90,000 and $33,000 to provide for 2 percent administrative promotions and one-half of one percent for changes in classification grades due to increased responsibilities and appeals from present classification_. $1,300,000 150,0* 1,450,00 Mr. UMSTEAD, Admiral Furlong, is there any further statement you care to make on that? Admiral FURLONG. No, sir; that covers this same situation. We need $150,000 in order to carry on the work and charge it to the thing the people are actually working on. I am not asking for a increase in 1938, but this is for 1939. CHANGE IN LANGUAGE REQUESTED FOR PLACING CONTRACTS FOR SHIP CONSTRUCTION Mr. UMSTEAD. Admiral, I direct your attention to the requested change of language on pages 137 and 139 of the committee print, which has reference to placing contracts for and in connection with ship construction. I believe the Assistant Secretary of the Navy touched upon that matter in his presentation to the Committee. I you have any additional statement we should be glad to hear it. Admiral Du BOSE. The change in wording is being requested primarily in the interest of the Bureau of Ordnance, and I think Admiral Furlong can make a statement in answer to that question. Admiral FURLONG. We are now required to make everything in the Government yards that we can build in a Government yard. For instance, we make a 5-inch 38 gun. That is one of the best and latest guns, and we require great numbers of them. We put them on destroyers, battleships, and cruisers. It is a surface gun as well as an antiaircraft gun. In time of war, we would require still greater numbers of them than we are able to get now, and the Army, under the present law, helped us to build those guns in their shops. We cannot take care of the building of all of them at the Washington Navy Yard. As soon as wartime comes along, not only those guns but the fuzes and the things that the Army builds for us-the Army will throw us out of those shops on account of their own needs, and we will have no place to go to get them built. We, in the Bureau of Ordnance, would like to place the manufacture of a number of those guns with various private concerns, private shipbuilding and steel concerns, where they will learn how to build them and will have the practice, and then in case of need we can expand very rapidly. All we would like to do here is to be able, when we find it necessary, or in the discretion of the Secretary in order to promote the national defense, to get private concerns fitted up so they can build certain things. Mr. UMSTEAD. I believe that you stated, Admiral, when you were before the committee several days ago, that about 39 percent of your work is now done by private concerns? Admiral FURLONG. Of a certain type: yes, sir. That is, guns that absolutely could not be done in the navy yards, in our own factories. Mr. UMSTEAD. Then, within the limits of this 39 percent you are not now able to do what you are seeking to do in this change of language? Admiral FURLONG. That is right, sir. I would like to say, further, when this proposition for four battleships was brought up and we had to build 16-inch guns, we could not build 16-inch guns for four battleships in this navy yard or in the Government Army plants, and I wanted to have them built by Bethlehem or Midvale, and I would like to have had them take up the building of them, take up the building of them, but they had been so long without getting any orders for them that they did not feel it was good business for them to take up the building of the 16-inch guns. So, they told me flatly they could not do it. Mr. DITTER. Would not the splendid purposes of this suggested change in language be destroyed as long as you continue to maina threat against private industry at the South Charleston plant? Admiral FURLONG. I do not think so. There are other things that South Charleston would make. There are many other things we would have to have in the ordnance line that South Charleston would not threaten. I do not know how much of a threat South Charleston, of course, is to private industry. Mr. DITTER. That is the only excuse for its present existence, though? Admiral FURLONG. That is right, sir. THE HISTORY AND DETAILS OF THE BUILDING OF THE "AQUIDNECK” Mr. THOм. Admiral, are you acquainted with Mr. Eads Johnson, a naval architect, of New York City? Admiral Du Bose. Yes; I know him by reputation. Mr. THOм. Is he a reputable naval architect? Admiral Du BOSE. He is. Mr. THOм. Has your attention been drawn to an article in the June issue of the Marine Engineering and Shipping ReviewAdmiral Du Bose. Yes, sir. Mr. THOм (continuing). Entitled "Shipbuilding Nonsense-1967 Variety"? Admiral Du BOSE. Yes, sir. Mr. THOм. Now, I believe that he drew the plans for the Navy ferryboat which is known as the Aquidneck, and which is on duty between Newport and the torpedo station, a run of about 700 yards: is that correct? Admiral Du BOSE. I could not state whether he did or did not draw the plans. I think he did, or, at least, he had something to do with them. The facts in the case are that the Navy Department placed a contract for the construction of the vessel with the Bath Iron Works, and the Bath Iron Works purchased a set of plans from another shipbuilding concern who had built similar ferryboats, and. in general accordance with the purchased plans, the Bath Iron Works built the Aquidneck for the Navy. I cannot state whether Mr. Johnson did or did not prepare the set of plans purchased by the Bath Iron Works, but I think he did. Mr. THOм. Over his own signature he says that he did design the Aquidneck. Admiral Du BOSE. As stated, the Bath Iron Works, which had the contract with the Navy Department to build the Aquidneck, purchased the plans from another shipbuilding concern, and that is as far as my definite knowledge goes. Mr. THOM. Now, he has presented a very searching criticism here to the effect that the Aquidneck has been overequipped. and that it has been built along lines that would be necessary if it were a seagoing craft instead of nothing but a ferryboat to run over this small course of 700 yards. I believe you are acquainted with that article, Admiral? Admiral Du BOSE. Yes, sir. Mr. THOм. What is your answer to that charge? Admiral Du BOSE. The Navy Department got out a circular of requirements for a steel ferryboat, and they submitted that circular of requirements to various shipbuilders inviting proposals, in accordance with the shipbuilder's own specifications, for the building of a ferryboat that would comply with the general requirements set forth in this circular. I have been informed by the contractor for the Aquidneck, the Bath Iron Works, that the plans and specifications for the hull of this craft were purchased from a private shipbuilder who previousl. had built several vessels from the plans. The Bath Iron Works submitted their own specifications with their bid, based on the circular of requirements which accompanies the invitation to bid sent on by the Navy Department. |