to make voluntary adjustments, the Commission referred their contracts to its Price Adjustment Board for renegotiation, pursuant to the provisions of section 403 of the Act of April 28, 1942, 56 Stat. 245, as amended.

Considerable study has been given to the establishment of fair and reasonable charter rates for vessels under charter to the War Shipping Administration. The records indicate that existing charter rates, both time and bareboat, are high, but the War Shipping Administration is now considering revison of such rates.

Sections 221 and 222 of the Merchant Marine Act, 1936, as amended, provide for insurance against loss or damage by the risks of war. However, the values of vessels established for insurance purposes in some instances appear to be excessive. In such instances where settlements are effected based on the amount of insurance assumed, it is obvious that the owners will receive more for a vessel in the event of total loss than would have been paid them had the vessel been requisitioned for title pursuant to the provisions of section 902 of the Merchant Marine Act, 1936, as amended. Such a result, although not illegal, is nevertheless wasteful of the public money. In this connection, particular attention is invited to section 226 (a) and section 228 of the Merchant Marine Act, 1936, as amended by the Act of April 11, 1942, 56 Stat. 214, relating to war-risk insurance, providing as follows:

Sec. 226. (a) The Commission in the administration of this subtitle is authorized to adjust and pay losses, compromise and settle claims whether in favor of or against the Government, and to pay the amount of any judgment rendered in respect of any suit or settlement agreed upon in respect of any claim. The determinations of the Commission with respect to adjustments, compromises, settlements, and payments hereunder shall not be subject to review by any other executive or accounting officer of the Government.

*

Sec. 228. In conformity with the President's Executive order of February 7, 1942 (Numbered 9054; 7 F. R. 837), the authority conferred upon the Commission by this subtitle shall be vested in and exercised by the Administrator of the War Shipping Administration.

SETTLEMENT OF WAR CLAIMS

With the great expansion in the armed forces there has resulted a steady increase in claims presented by members of the component services or their families. Experience indicates that approximately 1 in every 83 members of the armed forces presents a claim or claims to the General Accounting Office, involving travel and additional or disputed pay or allowances, reimbursement for cost of outside medical or hospital treatment, and other matters such as normally would arise in connection with the handling of the pay accounts of personnel being

constantly transferred, or with reference to which numerous pay changes are being effected. Based upon an estimated constant military strength of 10,000,000 men and women, it is believed that not less than 14,000,000 will have been members of the armed forces should the war long continue and, with the invasion of the continent of Europe, the volume of claims work will constantly increase.

OTHER WAR MEASURES

In view of the provisions of the Joint Resolution approved December 22, 1942, 56 Stat. 1068, and the War Overtime Pay Act of 1943, Public Law 49, approved May 7, 1943, and of the necessity of utilizing the maximum efforts of the employees of the Office to process the increased workload caused by the war program, a 6-day, 48-hour workweek has been in effect in the General Accounting Office since January 1, 1943. The Office had previously been on a 44-hour week commencing February 16, 1942.

One of the greatest wartime problems faced by the General Accounting Office, along with other Government agencies, is the rapid turnover of personnel, and the inability to recruit sufficiently qualified replacements, as discussed more fully in Chapter III of this report. During the fiscal year 1942, there were 3,153 appointments to positions in the Office, and 1,277 separations, of which 370 were attributable to entry of employees into the military service. During the fiscal year 1943, there occurred 4,429 appointments, 40 percent more than during 1942, but 2,818 separations, or 121 percent more than during 1942. Also, the number of employees entering the military service increased from 370 in 1942 to 1,110 in 1943. These last figures represent a most direct personal contribution to the war program by employees of the Office.

Other wartime activities of the General Accounting Office, referred to in my annual report for 1942, including cooperation with the Interdepartmental War Savings Bond Committee, established pursuant to Executive Order No. 9135, dated April 16, 1942, in the purchase of war savings bonds through the voluntary pay-roll deduction plan, and with the Public Buildings Administration in its air-raidprotection plans, were continued throughout the fiscal year 1943.

EXAMPLES OF STATUTES ENACTED DURING THE FISCAL YEAR 1943, CONFERRING UNUSUAL ADMINISTRATIVE AUTHORITY

OVER EXPENDITURES

(Emphasis Supplied Below)

Act of July 2, 1942 (56 Stat. 468).

Contingent expenses: ** * * translating services by contract without regard to section 3709 of the Revised Statutes (41 U. S. C. 5); purchase and presentation of various objects of a cultural nature suitable for presentation (through diplomatic and consular offices) to foreign governments, schools, or other cultural or patriotic organizations, the purchase, rental, distribution, and operation of motion-picture projection equipment and supplies, including rental of halls, hire of motion-picture projector operators, and all other necessary services by contract or otherwise without regard to section 3709 of the Revised Statutes; *. (Department of State, Contingent Expenses, Departmental.) Salaries and expenses: * advertising in newspapers and technical publications without regard to section 3828 of the Revised Statutes; drilling and testing of foundations and dam sites, by contract if deemed necessary, purchase in the field of planographs and lithographs, and leasing of private property to remove therefrom sand, gravel, stone, and other materials without regard to section 3709 of the Revised Statutes (41 U. S. C. 5) ; *. (Department of State, International Boundary Commission, United States and Mexico, 56 Stat. 475.)

*

Provided further, That this appropriation shall be available for alterations, improvements, and repairs to premises occupied for detention purposes without regard to section 322 of the Act of June 30, 1932 (40 U. S. C. 278a), when authorized or approved by the Attorney General, and for all necessary expenses incident to the maintenance, care, detention, surveillance, parole, and transportation of alien enemies, including transportation and other expenses in the return of such aliens to place of bona fide residence or to such other place as may be authorized by the Attorney General: Provided further, That not to exceed $200,000 of this appropriation may be expended for the employment of personnel, exclusive of attorneys, without regard to the Civil Service Act and regulations or the Classification Act of 1923, as amended, and not to exceed $25,000 to meet unforeseen emergencies of a confidential character, to be expended under the direction of the Attorney General, who shall make a certificate of the amount of any such expenditure the purpose of which he may think it advisable not to specify, and every such certificate shall be deemed a sufficient voucher for the sum therein expressed to have been expended: * Provided further, That this appropriation shall be available for the acquisition or construction of temporary buildings necessary for or incident to the detention of aliens, and when authorized or approved by the Attorney General obligations may be incurred for such purposes without reference to section 3709 of the Revised Statutes: *. (Department of Justice, Immigration and Natur

alization Service, 56 Stat. 483.)

* *

Construction and equipment of helium plants: For all necessary expenses, without regard to section 3709, Revised Statutes, to enable the Secretary of the Interior to increase and improve the capacity for the production of helium, ** (56 Stat. 544.)

*

Manganese beneficiation pilot plants and research (national defense):

Provided further, That section 3709 of the Revised Statutes shall not be construed to apply to this appropriation; *. (56 Stat. 544.)

*

Production of alumina from low-grade bauxite, aluminum clays and alunite (national defense): * * Provided, That section 3709 of the Revised Statutes shall not be construed to apply to this appropriation; 545.)

(56 Stat. Investigation of bauxite and alunite ores and aluminum clay deposits (national defense): * * * Provided further, That section 3709 of the Revised Statutes shall not be construed to apply to this appropriation; Stat. 545.)

*

(56

Magnesium pilot plants and research (national defense): For all necessary expenses, without regard to section 3709 of the Revised Statutes, for the conduct of investigations and development of methods for the recovery of magnesium from domestic raw materials, including naturally occurring brines, salt deposits, dolomite, magnesite, and brucite, by hydrometallurgy, direct reduction, and electrolytic methods, including laboratory research; * *. (56 Stat. 546.)

Investigation of deposits of critical and essential minerals in the United States and its possessions (national defense): For all necessary expenses, without regard to section 3709 of the Revised Statutes, for investigating deposits of critical and essential minerals in the United States and its possessions, including laboratory research; * *. (56 Stat. 547.)

*

Helium production and investigations: * Provided, That section 3709, Revised Statutes, shall not be construed to apply to this appropriation, or to the appropriation for development and operation of helium properties (special fund) in section 3 (c) of the Act of September 1, 1937 (50 U. S. C. 164) ; partment of the Interior, Bureau of Mines, 56 Stat. 547.)

Act of July 2, 1942 (56 Stat. 611).

(De

For all emergencies and extraordinary expenses arising in the War Department or any of its subordinate bureaus or offices in the District of Columbia, or in the Army at large, but impossible to be anticipated or classified, including personal services, the purchase of lawbooks, books of reference, subscriptions to newspapers and periodicals; the actual and necessary expenses or per diem in lieu thereof, as may be determined and approved by the Secretary of War, of military and civilian personnel in and under the Military Establishment on special duty in foreign countries; and for examination of estimates of appropriations and of military activities in the field, to be expended on the approval or authority of the Secretary of War, and for such purposes as he may deem proper, and his determination thereon shall be final and conclusive upon the accounting officers of the Government, and payments from this appropriation may, in the discretion of the Secretary of War, be made on his certificate that the expenditures were necessary for confidential military purposes, $11,346,600. (Military Activities, Office of the Secretary of War, Contingencies of the Army.)

For all expenses necessary for the mobilization, operation, and maintenance of the Army of the Philippines, including expenses connected with calling into

the service of the armed forces of the United States the organized military forces of the Government of the Commonwealth of the Philippines, and expenditures incident to pay, allowances, operation, maintenance, and other activities of units and personnel of said organized military forces, and for the emergent mobilization and training of such forces, may be made without regard to the provisions of law regulating the expenditure of or accounting for funds of the United States but shall be expended and accounted for in a manner prescribed by the President of the United States, (Military Activities, Army of the Philippines, 56 Stat. 628.)

Office of Secretary of War:

*

for the temporary employment of persons

(at not to exceed $50 per day) or organizations, by contract or otherwise, without regard to section 3709 of the Revised Statutes or the civil service or classification laws: (Military Activities, Salaries, War Department, 56

Stat. 629.)

Sec. 8. Whenever, during the fiscal year ending June 30, 1943, the Secretary of War should deem it to be advantageous to the national defense, and if in his opinion the existing facilities of the War Department are inadequate, he is hereby authorized to employ, by contract or otherwise, without reference to section 3709, Revised Statutes, civil service or classification laws, or section 5 of the Act of April 6, 1914 (38 Stat. 335), and at such rates of compensation (not to exceed $50 per day for individuals) as he may determine, the services of architects, engineers, or firms or corporations thereof, and other technical and professional personnel as may be necessary. (Military Appropriation Act, 1943, 56 Stat. 631.)

Act of July 22, 1942 (56 Stat. 664).

National Arboretum: ** *

*

$54,892, of which such amounts as may be necessary may be expended by contract or otherwise for the services of consulting landscape architects without reference to the Classification Act of 1923, as amended, or civil-service rules. (Department of Agriculture, Bureau of Plant

Industry, 56 Stat. 678.)

Act of July 25, 1942 (56 Stat. 704).

Emergency fund for the President: To enable the President, through appropriate agencies of the Government, to provide for emergencies affecting the national security and defense and for each and every purpose connected therewith, and to make all necessary expenditures incident thereto for any purpose for which the Congress has previously made appropriation or authorization and without regard to the provisions of law regulating the expenditure of Government funds or the employment of persons in the Government service, such as section 3709 of the Revised Statutes and the civil service and classification laws; and any waiver hereunder of the provisions of any law regulating such expenditure or such employment shall not be exercised by any agency unless the allocation to such agency or subsequent action of the President in connection therewith permits any such waiver to be availed of; $100,000,000: Provided, That in a total amount of not exceeding $25,000,000 and within the purposes provided for in this paragraph, the President may authorize the expenditure of sums from this appropriation for objects of a confidential nature and in any such case the certificate of the expending agency as to the amount of the expenditure and that it is deemed inadvisable to specify the nature thereof shall be deemed a sufficient voucher for the sum therein expressed to have been expended: * (Executive Office of the President, Emergency Fund for the President.)