Admiral KARO. April 15.
Mr. Bow. This year?

Admiral KARO. Yes.
Honolulu.

That came from our officer in charge at

Mr. Bow. That was April 1958?

Admiral KARO. Yes.

Captain RITTENBURG. We received a letter in the middle of April. That was the first time we could get a definite date from the Standard Oil Co. for starting construction.

TYPE OF CONSTRUCTION

Mr. Bow. Is this a tower construction or surface construction?
Admiral KARO. My understanding is it will be a refinery————
Mr. Bow. I am talking about your construction.

Admiral KARO. Just surface buildings and a seismograph vault.

LAND AVAILABILITY

Mr. Bow. Are you having to pay the Navy for the land?
Admiral KARO. NO.

Mr. Bow. Is there sufficient land around the new site to protect. you against anything else happening?

Admiral KARO. Yes. We feel this tract of 175 acres will give us protection, to the best of our knowledge and belief, for some time to

come.

Mr. Bow. Will you have to have new equipment or will you move your present equipment?

Admiral KARO. Our instruments will be moved from the present station.

Mr. Bow. I believe that is all.

Mr. PRESTON. Mr. Horan.

Mr. HORAN. Mr. Chairman, for my own information, the Interior Department has a station on Hilo, what is the nature of that?

Admiral KARO. I think the one on Hilo is a part of their volcanic studies.

Mr. HORAN. I was wondering if it was possible to combine the two? Admiral KARO. No, sir. The tremors from the volcano would cause the seismograph to be tripped if it were sufficiently sensitive to record distant earthquakes.

The main part of this installation at Honolulu is a magnetic observatory.

Mr. PRESTON. Admiral, what land are you going to locate the observatory on?

Admiral KARO. It is on Navy land.

Mr. PRESTON. One hundred and seventy-five acres?

Admiral KARO. One hundred and seventy-five acres, yes; which they are going to declare "surplus" for transfer to us.

Mr. PRESTON. The entire 175 acres will be utilized for this purpose? Admiral KARO. It will be utilized for protection.

Mr. PRESTON. I understand that, but how close is this land located to a city or a municipal development?

Mr. AMSTADT. This map might show it a little bit more clearly.

Mr. PRESTON. How close would it be to a city or a municipal development?

Admiral KARO. The city would be on this other side.

Mr. PRESTON. About how many miles?

Admiral KARO. Five miles.

Mr. PRESTON. It is an area that is populated?

Admiral KARO. No, sir. When we investigated the proposed site we had to get a bulldozer to clear away the brush so we could make the necessary determinations to be sure that it was magnetically acceptable for the new observatory.

UNPAID AND UNDELIVERED ORDERS

Mr. PRESTON. In your justifications, you show an item of $193.000 for obligations incurred for the cost of other years.

a parenthesis and unpaid, undelivered orders.

What does that item represent?

Then you have

Admiral KARO. I will ask Mr. Amstadt to reply to that.

Mr. AMSTADT. This amount would be for items which would not have been costed during fiscal year 1959. It would include some of the items of construction costs which, by paying only portions of the cost at various stages of construction, would not be costed in fiscal year

1959.

Mr. PRESTON. Are you saying in effect that you have already expended some funds that you want reimbursement for now? Mr. AMSTADT. No, sir.

Mr. PRESTON. What other years are you referring to in this language, future years?

Mr. AMSTADT. Future years.

Mr. PRESTON. Beyond fiscal year 1959?

Mr. AMSTADT. Yes, sir.

Admiral KARO. Obligated but not liquidated.

HOUSING COSTS

Mr. PRESTON. As to these houses that are going to be built, three bedroom homes, what is the cost of each?

Admiral KARO. I think around $20,000 or $25,000.

Captain RITTENBURG. These will be built in line with Budget Bureau specifications for housing units in Hawaii.

Mr. PRESTON. Is it $20,000 or $25,000?

Mr. AMSTADT. $20,000 is the estimated cost for each of the four buildings.

Mr. PRESTON. What is the $35,000 indicated in the green sheets for! Is that a carryover item? Is it an unobligated balance?

Mr. AMSTADT. Yes; it is an unobligated balance carried forward from 1959 to 1960 for contingencies and reservations. They are contingencies estimated when granting the construction contract, sir. Mr. PRESTON. You cannot identify any particular item or sum that

is involved in this $35,000?

Mr. AMSTADT. No, sir; not at this time. A part of the estimate is for construction reservations and contingencies and the remainder

for such items as approaches, fences, and so forth.

Mr. PRESTON. Admiral, are you absolutely certain that this installation is essential to your operation?

Admiral KARO. Yes, sir.

Mr. PRESTON. You have no reservation about it as being completely essential?

Admiral KARO. No, sir.

SALARIES AND EXPENSES

INCREASED PAY OF COMMISSIONED OFFICERS

Mr. PRESTON. We will take up the next item, "Salaries and expenses."

PURPOSE AND NEED FOR SUPPLEMENTAL FUNDS

To provide the necessary additional funds in excess of the amounts contained in the 1959 budget estimate for the adjustment of the existing pay scales of crews of vessels in compliance with section 202 (8), Public Law 429 (81st Cong.), and for the increased pay of active and retired commissioned officers as prescribed by Public Law 85-422.

GENERAL STATEMENT

Mr. PRESTON. Will you speak to that, Admiral?
Admiral KARO. Yes, Mr. Chairman.

Supplemental funds in the amount of $491,000 are requested for the increased pay of active and retired commissioned officers as prescribed by Public Law 85-422 ($169,000), and to provide for adjustment of the existing pay scales of crews of vessels ($322,000) in compliance with section 202 (8), Public Law 429 (81st Cong.).

For the past year, and longer, we have made an intensive study of the compensation and rating structure of our crews of vessels in order that it may reflect present-day requirements and comply with section 202 (8), Public Law 429 (81st Cong.), which states that:

The compensation of crews of vessels shall be fixed and adjusted from time to time as nearly as is consistent with the public interest in accordance with prevailing rates and practices in the maritime industry.

As a result of the study recently completed by the Personnel Office of the Department of Commerce and the Coast and Geodetic Survey, a new rating structure and pay-scale tables have been prepared and agreed upon for adoption on July 1, 1958. I would like to call attention to the fact that the printed copy of our estimates said July 1, 1959, which is a typographical error.

It is firmly believed that this new pay structure complies with Public Law 429 and is a necessary step in providing a modern, up-to-date pay structure for our vessel employees. We feel it will increase overall morale and, we hope, increase efficiency and assist the more qualified crew members into making this their career service.

The cost of these pay increases cannot be absorbed. To do so would further reduce our ability to perform essential nautical and aeronautical charting program operations and reduce still further our other services, such as providing geodetic control for the Federal mapping and other programs which fall far short of meeting existing legitimate requirements.

As a matter of record, since 1952, the Bureau has had to absorb $700,000 in pay raises and similar items, most of which of necessity had to be taken from program. Consequently, we now employ 487 fewer personnel than in 1952. This in the face of increased requirements for our products and services.

Mr. PRESTON. I think maybe I had better ask Mr. Nielson some questions about this item. Does this affect everybody from top to bottom in the Coast and Geodetic Service?

Mr. NIELSON. Mr. Chairman, this refers only to the crews of vessels in the Coast and Geodetic Service. This does not cover pay for the other items.

NEED FOR PAY ADJUSTMENTS

Mr. PRESTON. What is the percentage of increase per person involved? Is there an average that you can give? Mr. NIELSON. Do you have that?

Mr. AMSTADT. The average percent was 26.5.
Mr. PRESTON. Increase in compensation?

Mr. AMSTADT. Yes, sir.

Mr. PRESTON. Is it possible that we have been derelict through the years in paying these people to the extent of 26 percent?

Admiral KARO. Yes, sir. We have not been derelict with respect to the full 26 percent, but we have-I will admit-been derelict to some extent, and I feel that, in all justice, it is time that we brought their pay up to the standard required by law. In fact, as I mentioned earlier, I felt all along that their whole pay structure was not realistic. We have spent considerable time during the past year in reviewing the whole system and working up a plan to renovate, or bring up to date, our archaic crew-pay structure.

Mr. PRESTON. It surprises me very much, as one member of this committee, that an agency of the Government could be 26-percent derelict in the amount of compensation that is paid, because, by and large, Federal employees are paid on a higher scale than people in comparable jobs in private industry.

Admiral KARO. Yes, sir.

Mr. PRESTON. Except in certain specialized areas. take an example.

Suppose we

Give me the type of person that would be affected by this. Would he be someone who is an engineer or an assistant engineer?

Admiral KARO. Yes, sir; the chief marine engineer.

Mr. PRESTON. How much would he make before the increase, and how much does he make now with the increase?

Admiral KARO. Here is one specific example: Present pay is $765, and the new pay would be $925.

Mr. PRESTON. Per month?
Admiral KARO. Yes, sir.

Mr. PRESTON. What would his job, be?

Admiral KARO. Chief marine engineer on one of our larger ships. Mr. PRESTON. Give us the chart showing the increases.

Admiral KARO. The chart is on page 11. That does not show the increases but shows our pay scale as compared to the maritime positions.

Mr. PRESTON. You are trying to bring the Government scale up to the private maritime level; are you?

Admiral KARO. Basic pay, sir, not the practices. The practices add about 50 percent more to the maritime level. Here is a list of specific individuals, by names, ships, ratings, and present scale.

Mr. PRESTON. Admiral, can you explain why this adjustment has not been made previously?

Admiral KARO. Well, Mr. Chairman, part of it was that we did not realize the rate at which the maritime industry had advanced its pay scales. I do not know how to put this, but the other factor was a shortage of funds to get our job done and to discharge our responsibilities in all of our various spheres.

Mr. PRESTON. Was the increase brought about as a result of negotiations between the employees involved and yourselves, or was it a voluntary thing?

Admiral KARO. It is a voluntary thing. When I realized the extent to which we were out of line, the only thing to do was to take it on the chin and tell you people. The crews are entitled to what the law says they shall have.

As I mentioned in quoting the law, it says

consistent with the public interest and in accordance with prevailing rates and practices.

We feel that the practices in the maritime industry should not apply to our type of operations, but the basic pay scales which we are trying to approach should. Our entering scale of the various rates is below the maritime, but if a man makes a career out of our service, he eventually gets slightly more than the basic scale.

Mr. PRESTON. You cleared this with the Commerce Department? Admiral KARO. Yes, sir. In fact, the whole study was entered into by the Departmental Personnel Office together with our Personnel

Office.

We went over it, and I can assure you that they went into it with a fine-tooth comb and asked the same questions you have asked, sir. Mr. NIELSON. I might say, Mr. Chairman, that the Department discussed this at length with the admiral and felt that this would, and should, be put into effect, effective July 1.

Mr. PRESTON. Mr. Nielson, why has it not been done before, if it is material and necessary now? Why was it not necessary a year ago? Mr. NIELSON. Mr. Chairman, I think it was probably necessary a year ago. I am not sure, as the admiral says, that they were completely aware of this problem, but as soon as we were aware of it, we felt that their employees' pay should be adjusted.