United States in the judgment of $9,277,666.17 against the Pan American Petroleum Co., case B-115M, to $8,691,214.28 prior to July 1, 1937. This settlement close the actions brught by the Government in the litigation leading to the cancellation by the court of Pan American Petroleum Co.'s "E-G-I lease" (Sacramento 019581) in Naval Petroleum Reserve No. 1.

REVOCABLE LICENSES

The following revocable licenses were approved since the 1938 hearings:

1. PRODUCTS-SOURCES, NATURE, AND QUANTITY, AND DISPOSITION MADE AND PROPOSED SINCE PREVIOUS HEARINGS

The following tables show the products obtained and royalties accruing during the fiscal year ending June 30, 1937, from the Naval petroleum reserves. All receipts have been covered into the Treasury of the United States as "Miscellaneous receipts."

Rental of grazing rights, Naval Petroleum Reserve No. 3, NOd-721, NOd-722, revocable permits...

Litigation....

Total....

TUESDAY, JANUARY 4, 1938.

NAVAL PRISON FARMS AND PRISON PERSONNEL

STATEMENT OF LT. T. H. TIEMROTH, UNITED STATES NAVY

Mr. UMSTEAD. We will take up next the item for naval prison farms and prison personnel.

Estimate, 1939...

Lieutenant TIEMROTH. The justification for this item is as follows:

$12,000

The expenditures from this account are made for the operation, maintenance, and improvement of naval prison farms and for the welfare, recreation, and education of prison personnel, in accordance with regulations prescribed by the Secretary of the Navy. The expenditures cannot exceed the aggregate receipts covered into the Treasury in accordance with section 4 of the Permanent Repeal Act, 1934.

Receipts and expenditures in previous years have been as follows:

Mr. UMSTEAD. I believe under this item you are compelled to stay within the amount of your receipts?

Lieutenant TIEMROTH. Yes, sir.

Mr. UMSTEAD. Do you not think, in view of the expenditures in previous years, that the amount of $12,000 is a little high?

Lieutenant TIEMROTH. No, sir; it is necessary for emergency ex

penses.

The difference of $1,845 between the estimate for 1939, $12,000, and the actual receipts for 1937, plus unexpended balance at the end of the previous year, $10,155, is necessary to provide a working margin on which the farm can operate. The inventory of prison farm property at the beginning of the fiscal year 1938 amounted to $9,884. Between one-fourth and one-third of that value is in cows. In case those cows would become infected or tubercular, if we had to sell them and buy more, that would take up that so-called working margin. In the event that it should be desirable to sell any of this property and purchase other property to take its place in order to improve the efficiency

of the farm, such procedure would be impossible without this working margin.

Mг. THOм. Why do they set up a separate project for this naval prison farm?

Lieutenant TIEMROTH. Because it is self-sustaining, and it is easier to handle it that way.

TUESDAY, JANUARY 4, 1938.

SALARIES, NAVY DEPARTMENT

STATEMENT OF WILLIAM D. BERGMAN, ADMINISTRATIVE ASSISTANT AND CHIEF CLERK, NAVY DEPARTMENT

Mr. UMSTEAD. We will now take up the estimates for salaries of the civil personnel of the Navy Department.

Mr. BERGMAN. The various appropriations for "Salaries, Navy Department," cover the pay of the regular force of employees in the 20 bureaus, boards, and offices of the Navy Department, exclusive of Marine Corps Headquarters. Additional personnel is employed in some bureaus and paid from "Replacement of Naval Vessels," and other appropriations.

The estimates for 1939 are based upon the number of employees and amounts appropriated in 1938, plus additional employees for certain bureaus and offices considered necessary for the proper conduct of the work of the Navy Department.

The following tables are submitted showing:

(a) Number of employees and amounts of money appropriated for the fiscal years 1937 and 1938, and requested for 1939.

(b) Number of employees, by bureaus and offices, at the close of the fiscal year 1937 and on October 31, 1937.

Bureau or office

Number of employees, by bureaus and offices, at close of fiscal year 1937 and on Oct. 31, 1937

Includes employees for whose salaries reimbursement is made from other appropriations.

Mr. UMSTEAD. Mr. Bergman, why are there eight employees in the office of the Secretary paid from the appropriation "Maintenance, yards and docks?"

Mr. BERGMAN. Those employees are in the Navy Department garage. There is authority to pay the expenses of operating the garage from the appropriation "Maintenance, yards and docks."

SALARY RECLASSIFICATIONS

I present a statement as to individuals, at present employed, whose positions have been reclassified one or more times since the fiscal year 1933, giving the original position designation and annual rate of compensation and the present position designation and annual rate of compensation, and showing intermediate changes, if any, either in consequence of reclassification or step-up.

Mr. UMSTEAD. Mr. Bergman, I see no need to print the statement. It does, however, raise a number of questions. I believe that reclassi

36929-38- 46

fications must have the approval of the Civil Service Commission before they can be finally made?

Mr. BERGMAN. That is correct, sir.

Mr. UMSTEAD. Before an application for reclassification is submitted to the Commission, it is referred to, I believe, and endorsed either favorably or adversely by a departmental board in the Navy Department?

Mr. BERGMAN. Yes, sir; by the Department Classification Board, which is an advisory board to the Secretary of the Navy on classification matters.

MEMBERSHIP OF DEPARTMENTAL CLASSIFICATION BOARD

Mr. UMSTEAD. Who in the Navy Department sit as members of the Classification Board?

Mr. BERGMAN. The senior member of the board is myself, and there is a member from the Bureau of Supplies and Accounts do you wish their names?

Mr. UMSTEAD. No, not the names.

Mr. BERGMAN. There is a member from the Bureau of Supplies and Accounts, two members from the Personnel Section of the Secretary's office, and a member from of the each of the technical bureaus who is their top civilian engineer.

Mr. UMSTEAD. Making a total of how many people?

Mr. BERGMAN. Nine.

Mr. UMSTEAD. How many employees of the Secretary's office as a matter of practice sit on all boards dealing with these applications? Mr. BERGMAN. Myself as senior member, Mr. McPherson, Chief of the Files and Records Section and Personnel Classification Section. and Mr. Piozet, Chief of the Civil Personnel Division.

Mr. UMSTEAD. How many is that?

Mr. BERGMAN. Three active members, and, in addition, there is another employee in the Personnel Division who acts as the recorder of the board, but who has no vote.

Mr. UMSTEAD. Of course, the members of this board frequently are required to pass upon techincal positions.

Mr. BERGMAN. That is quite right, sir.

Mr. UMSTEAD. And yet a number of them have had no technical experience, is that not true?

Mr. BERGMAN. This is the way we handle the work, Mr. Chairman: All clerical, administrative and fiscal positions are handled by the CAF members of the Board, unless the case is something very unusual, or exceptional in the matter of establishing a new plane or some move recommended which would upset the classification plan, in which case the entire membership of the Board is called into session. Mr. UMSTEAD. Ordinarily, how many of you sit on the Board? Mr. BERGMAN. For the CAF positions, three, and the senior member.

Mr. UMSTEAD. Who are those three, the ones from the Secretary's office?

Mr. BERGMAN. Yes, sir, and the CAF member from the Bureau of Supplies and Accounts.

Mr. UMSTEAD. Then, insofar as CAF reclassifications are concerned. they are usually passed upon simply by the three representatives of the Secretary's office?