by the Department and the Budget Bureau in that it places a limit on the amount of money that may be expended in the District of Columbia for personnel services. The appropriation for the operation of the division's activities heretofore has been a lump-sum appropriation with no specific amounts set up for departmental expenditures, although we have carried it in our budget estimates. Senator MCKELLAR. That is a difference of about $3,000. Senator MCKELLAR. Well, what do you wish to do with that $3,000? Dr. TREADWAY. Mr. Chairman, because of the expansion and growth of the Division of Mental Hygiene, which is a new activity in the Public Health Service in which there is need for additonal personnel whch cannot be anticipated, it was necessary to place on duty with the approval of the Secretary of the Treasury two additional clerks at $1,620 a year which do not appear in the Budget estimates for 1936, but were placed on duty last autumn. Now, if this limitation of $24,500 is maintained, it will mean that these two employees will have to be discharged, and it will cripple the work a very great deal. They are absolutely essential. Senator MCKELLAR. Are they at present employed? Dr. TREADWAY. Yes, sir. Senator MCKELLAR. Where did you get them? Dr. TREADWAY. From the Civil Service Commission. Senator MCKELLAR. How long have they been with you? Senator MCKELLAR. They were put on duty last autumn? Senator MCKELLAR. And they have not been in the Department before? Dr. TREADWAY. No; they had not been with the Department before. Senator MCKELLAR. Very well, the committee will give consideration to it. Mr. HARLOW. May I say, Mr. Chairman, we are not asking that the appropriation be increased, but merely that the limitation be removed. Senator MCKELLAR. Yes; I see. COAST GUARD STATEMENT OF COMMANDER R. R. WAESCHE, HEAD OF DIVISION OF FINANCE Senator MCKELLAR. Commander Waesche, you want to be heard on the Coast Guard? Commander WAESCHE. Yes, Mr. Chairman. Senator MCKELLAR. What page? Commander WAESCHE. Page 22. Senator McKELLAR. What is the trouble? PAY AND ALLOWANCES Commander WAESCHE. In the first place, Mr. Chairman, we are asking for an increase of $68,933 in the pay and allowances appropriation. The House eliminated $88,000 and we are asking for some of that back. The item Senator MCKELLAR. What did the Budget do? Commander WAESCHE. The Budget approved this. Everything we are requesting, the Budget has approved. Senator MCKELLAR. It was in the Budget? Commander WAESCHE. It was approved by the Budget. Commander WAESCHE. The Budget approved $17,600,000. House allowed $17,512,000. The Senator MCKELLAR. The House allowed $17,512,000 and you want $17,580,933? Commander WAESCHE. Yes, sir. That increase is made up in two items, one for $14,475 for 20 additional men Senator McKELLAR. Fourteen thousand and what? Commander WAESCHE. $14,475. Senator McKELLAR. For what? Commander WAESCHE. For 20 additional enlisted men. The Budget approved an additional number of men of 40 for those two air stations, and the House cut out the 20 men on the basis that they had reduced the number of new planes, which the Bureau of the Budget had approved for the Coast Guard. These men were not for those planes. They had no connection with the planes. They were the ground crew for these two air stations which are under construction, one at Charleston, and one at San Diego, and consequently the fact that the amount of money for new planes was reduced by the House should have had no bearing on this item. Senator MCKELLAR. That is $14,000 of it? Commander WAESCHE. Yes. Senator MCKELLAR. What is the next? RATIONS Commander WAESCHE. The other item is for $51,458 for increased rations. That likewise was approved by the Bureau of the Budget and was based on a ration cost of 54 cents for 1937. Senator MCKELLAR. Fifty-four cents? Commander WAESCHE. At the time. Senator MCKELLAR. What is the cost of rations this year? Commander WAESCHE. For the month of January, it ran about 56 cents. Senator MCADOO. That is daily rations? Commander WAESCHE. Yes, sir. Senator McADOO. That is pretty cheap. I would like to live that cheap myself. Commander WAESCHE. So, Senator, as a matter of fact, we will really need more money than that to pay for the rations in 1937 if they continue to increase, or even if they just remain what they are today, because they are higher today than the amount upon which these estimates were based. REBUILDING AND REPAIRING STATIONS Senator MCKELLAR. What is the next item? Commander WAESCHE. The next item is an increase of $32,500. Senator MCKELLAR. On what page? Commander WAESCHE. Page 25. Senator MCKELLAR. $32,500? Commander WAESCHE. On page 25, line 5, to substitute $325,000 for $292,500. Senator MCKELLAR. Is that according to the estimates? Commander WAESCHE. That was approved by the Bureau of the Budget, but eliminated by the House. Now, we ask for that increase solely for the purpose of paying rental here in the District of Columbia for additional quarters for the headquarters force. We were forced to move out of the Treasury Annex to make room for the new disbursement division of the Treasury Department and had to rent quarters at 1,200 Fifteenth Street, NW. The rent this year was paid out of the emergency funds, and we want to pay that rent out of our regular appropriation. We included the necessary language in the preamble of the appropriation bill, which was approved and still stands in the bill, but we would like to have that $32,500 restored to pay this rental. That is the only increase that I am asking over what we were allowed this year. As a matter of fact, the amount is very small as compared with the work that has to be done with that money. Senator MCKELLAR. All right, is there anything else? You want this paragraph stricken out? Commander WAESCHE. On page 25, we want, beginning with line 9, to strike out "or of any permanent extension at any aviation shore station." Senator MCKELLAR. "Or of any permanent extension at any aviation shore station"? Commander WAESCHE. Exactly. Senator MCKELLAR. Why do you want that out? Commander WAESCHE. We feel that it may well interfere with the improvements and extensions to air stations in the way of ramps, fueling systems, and so forth. Senator McKELLAR. In what way? Commander WAESCHE. Ramps for hauling out hydroplanes. Senator McADoo. I do not see any necessity for putting that in. Why not eliminate it? You have got to give them some discretion in the use of these funds. Senator MCKELLAR. We will be very glad to take that up. CONTINGENT EXPENSES Commander WAESCHE. On page 26, line 12, we are asking that the $180,000 be substituted for $175,000, an increase of $5,000 in our contingent expense appropriations. Our contingent appropriation has always given us considerable trouble. It is the fund which we use for all odds and ends of expenses. We use it to pay for the transportation of freight and express charges and all of the odds and ends of expenses that are not carried in any other appropriation. It includes the recreation fund for enlisted men, and whenever we are short of money in this appropriation we immediately have to eliminate the funds for recreation and amusement of enlisted men. We have already done so for this. year. Just 2 weeks ago we sent out a circular to the service telling them to spend no more money for recreation. Senator McADOO. What sort of recreation is that? Commander WAESCHE. It is in the way of motion pictures, picture machines, magazines, baseball and football equipment, victrolas, phonographs, and so forth. Senator MCADOO. You have not to give them some kind of recreation? Commander WAESCHE. We certainly do; yes, sir. Senator MCADOO. I think that ought to be put back in there. Commander WAESCHE. The enlisted men suffer whenever we have any shortage in that appropriation. REPAIRS TO COAST GUARD VESSELS Senator McKELLAR. What is the next item? Commander WAESCHE. Repairs to Coast Guard vessels. Senator MCKELLAR. I see that you had $1,173,890 for repairs to vessels last year, and you are asking for $1,900,000 this year, and the House gave you $1,800,000. Commander WAESCHE. Yes; and the $1,900,000 will not see us through. We are up against a very difficult situation in connection with repair appropriations. In the first place, we have increased our aviation facilities, which has increased the amount of money needed for repairs to planes and the appropriation for repairs has not been proportionately increased. In addition a number of our vessels at the present time are reaching the stage where they need major reconditioning all at one time. We built a number of vessels from 1924 to 1928, and that whole group of vessels are reaching the point where they all need major repairs. The third major cause for shortage in repair funds is one with which, I believe, you gentlemen are familiar, namely, ice breaking. We have hade bent propellers, damaged clutches, and have done a lot of other damage to our fleet in connection with ice breaker. Senator MCADOO. Your vessels are getting older all of the time and of course that involves constantly increasing renewals, reconditioning, and repairs and then you have a larger fleet than you had before? Commander WAESCHE. Actually the fleet of vessels is being reduced by reason of the fact that we have not had sufficient money to keep them in repair. Senator MCKELLAR. My experience with the Coast Guard when I was in the Treasury taught me that it was one of the most valuable services rendered by this Government, not only to the vessels at sea, but in life-saving stations on shore. The saving of life and property by the entire Coast Guard is one of the most striking things I think that the Government is doing. It is one of the most beneficial, and I do not want to see the service starved myself. I think that it should have adequate appropriations and that it is rendering admirable service. Commander WAESCHE. Thank you, very much, Senator. We feel very much the same way. All ships and stations for the past 4 or 5 months, have been working very hard. Disaster after disaster has occurred and they have done some wonderful work. Senator MCADOO. Do you still maintain that regulation to the effect that they cannot stay in a port longer than 48 hours without going out to sea? sir. Commander WAESCHE. During the winter cruising months, yes, No matter what the con Senator McADOO. That is what I mean. ditions are at sea, they have got to go out. Commander WAESCHE. They have got to go out and be on the Commander WAESCHE. That is all. Thank you very much, Mr. Chairman. POST OFFICE DEPARTMENT STATEMENTS OF HARLLEE BRANCH, SECOND ASSISTANT POSTMASTER GENERAL; JESSE M. DONALDSON, DEPUTY SECOND ASSISTANT AND CHIEF CLERK; AND KARL A. CROWLEY, SOLICITOR RURAL MAIL ROUTES Senator MCKELLAR. Mr. Branch, I want to ask you about the appropriation for rural carriers. Have you got a copy of the Postal Laws and Regulations? Mr. BRANCH. Senator, We did not bring that along, but I presume there surely must be one around here, certainly. Senator MCKELLAR. What I want you to give the committee is the number of rural routes that have been consolidated during the last year. Mr. BRANCH. During what period? Senator MCKELLAR. The last year, last fiscal year, or up to January 1; put it that way. Mr. BRANCH. The past year? Senator MCKELLAR. Yes. p. 115.) (For letter supply information, see Mr. BRANCH. Senator, we will have to pick that out of these papers. It will take a little time. Senator MCKELLAR. All right. Mr. BRANCH. Senator, the period which perhaps would answer your question would be that from July 1, 1934, to June 30, 1935. Is that all right? Senator MCKELLAR. Well, we will take that period. How many were there? Mr. BRANCH. We may have that here, but let me give you that, and then I think I can bring you up to the first of the year. |