Lieutenant Colonel LUNCEFORD. At the present time the Department of the Army is developing legislation which will change the basic enactment, the one which we trace back to 1892, in such manner as to authorize a return of this money to the enlisted personnel under conditions of personal hardship.

Mr. PICKETT. The reason for the original enactment, I presume, was for the convenience of the enlisted personnel; is that correct?

Lieutenant Colonel LUNCEFORD. That is the basic reason; yes, sir. Of course it envisaged that a discharge would be granted under the normal terms of the discharges at about 3-year intervals. At that time the man would have his money back and would have an opportunity to do whatever he chose at that time, to reenlist or whatever else he chose.

Mr. PICKETT. Then, colonel, without unduly lengthening your statement, illustrate two or three instances for which it is desirable to continue this legislation. What types of circumstances arise that make it desirable to have this law continued?

Lieutenant Colonel LUNCEFORD. The authority which is now being exercised under this December 18, 1942, act, the provisions which allow a return of this money, allow the man himself to state the circumstances of his personal emergency. He puts that into a letter which is addressed to his commanding officer; and the commanding officer, after looking into the facts surrounding that situation, makes a recommendation as to the deposit being returned to the man to meet that personal emergency.

Mr. PICKETT. I have in mind this possibility, that we have an enlisted man at his station in the State of Washington and whose home is in Mississippi. There may be some illness in his family at home that makes it desirable, if not necessary, for him to get home. Let us assume he has money on deposit with the proper officials at his post in Washington, and he has no other funds with which to make the trip or pay his expenses on the trip. Would that be the type of circumstance that you have reference to here?

Lieutenant Colonel LUNCEFORD. I think so, Mr. Chairman. To my mind that is certainly an adequate factual justification for allowing the man to receive a return of his deposit.

Mr. PICKETT. Can you give the committee the benefit of the information as to what percent of the personnel in the military service keep accounts of this nature, and in what amounts?

Lieutenant Colonel LUNCEFORD. The figures I have, sir, on January 31, 1952, in the Army, 204,219 enlisted persons had deposits of this nature. The total value of all those deposits at that date was $40,323,539.

The figures on the Air Force on December 31, 1951, show 14,255 enlisted persons had deposits of this nature. The total dollar value of those deposits was $15,723,502.

Mr. PICKETT. Do you have any figures for the Navy of a comparable nature?

Lieutenant Colonel LUNCEFORD. The figures for the Navy, sir, as of January 31, 1952, 7,905 enlisted persons in the Navy had what are called sailors' deposits. The basic law is exactly parallel. The dollar value of those deposits was $5,716,797.

Mr. PICKETT. That was at January 31, 1951?

Lieutenant Colonel LUNCEFORD. 1952, sir. The figures for the Marine Corps show that their enlisted personnel in number of 3,285 had deposits of this nature, and a total dollar value of $2,536,927.

Mr. PICKETT. I presume from what you have stated that the question of making such deposits rests entirely at the option of the enlisted man himself.

Lieutenant Colonel LUNCEFORD. That is right, sir.

Mr. PICKETT. There is no compulsion at all exercised in connection with it.

Lieutenant Colonel LUNCEFORD. That is right, sir.

Mr. PICKETT. Is it necessary that we continue to provide the facilities for making such deposits in view of our widespread commercial banking systems at the present time?

Lieutenant Colonel LUNCEFORD. There are conditions where, overseas, for example, even at remote installations in the United States, the finance officer is available but there are no commercial banking facilities. Of course the foreign banking facilities in most cases would be considered inadequate by the enlisted personnel themselves. Mr. PICKETT. Then the basic reason for the extension of this authority would be to permit persons who are in overseas areas or outside the continental United States, or even in remote posts in the United States, to have sums readily available for their emergency use. that right?

Is

Lieutenant Colonel LUNCEFORD. Yes, sir. Of course the very narrow point that this provision is on is authorizing the return of this money prior to payment upon final discharge.

Mr. PICKETT. I understand that. But the basic legislation itself permitting the deposit was conceived to be for the benefit of the personnel.

Any questions, Mr. Boggs?
Mr. BOGGS. No questions.
Mr. PICKETT. Mr. Hillings?
Mr. HILLINGS. None.

Mr. PICKETT. Any further statement, Mr. Burrus?

Mr. BURRUS. No.

Mr. PICKETT. Proceed with the next item.

Mr. BURRUS. The next item is on page 18 at the bottom of the page. It is section 1 (a) (19) in the bill. Our witness is Commander Moser.

This provision, which is operative in time of war and for 6 months thereafter, authorizes sales to civilians at naval stations and post exchanges within the continental United States when the Secretary of the Navy finds that it is impracticable for such persons to procure such stores from private agencies without impairing the efficiency of the operation of the stations. It is only under those circumstances that these stores can be set up.

1 (a) (19) Item 533

SALE OF STORES TO CIVILIAN EMPLOYEES AT NAVAL STATIONS WITHIN THE

CONTINENTAL UNITED STATES

Such stores as the Secretary of the Navy may designate may be procured and sold to officers and enlisted men of the Navy, Marine Corps, and Coast Guard, and to the widows of such officers and enlisted men. Such designated stores may also be procured and sold to civilian officers and employees of the United

States, and to such other persons as may be specifically authorized by the Secretary of the Navy

(1) At naval stations and post exchanges beyond the continental United States or in Alaska; and

(2) At naval stations and post exchanges within the continental United States, in time of war and not exceeding six months thereafter, when the Secretary of the Navy finds that it is impracticable for the said civilian officers and employees and other persons to procure such stores from private agencies without impairing the efficient operation of the stations. The Secretary of the Navy may prescribe regulations governing sales under this section. April 14, 1937, c. 78, 50 Stat. 63; June 10, 1939, c. 196, 53 Stat. 814; Jan. 23, 1942, c. 15, 56 Stat. 13; as amended Apr. 9, 1943, c. 39, 57 Stat. 60.

STATEMENT OF LT. COMDR. EUGENE J. MOSER, SUPPLY CORPS, DIRECTOR, SHIP'S STORE DIVISION, BUREAU OF SUPPLIES AND ACCOUNTS, NAVY DEPARTMENT

Commander MOSER. Mr. Chairman and members of the committee, my name is Eugene J. Moser, lieutenant commander, Supply Corps, United States Navy. I am the Director of the Ship's Store Division, Bureau of Supplies and Accounts, Navy Department.

At the outset I would like to state that the proposed legislation is considered necessary only as an interim measure to continue to permit the sales from commissary stores under certain circumstances. The Department of the Navy is coordinating with the Departments of the Army and Air Force permanent commissary store legislation and expects to have it introduced and sponsored through the Armed Services Committees of the House and Senate.

The Navy Department has permanent legislation which was enacted into law on March 3, 1909, and amended on January 28, 1942, as found in 34 U. S. C. 533, which reads as follows:

Such stores as the Secretary of the Navy may designate may be procured and sold to officers and enlisted men of the Navy, Marine Corps, and Coast Guard and to the widows of such officers and enlisted men. Such designated stores may also be procured and sold to civilian officers and employees and to such other persons as may be specifically authorized by the Secretary of the Navy

(1) At naval stations and post exchanges beyond the continental United States and in Alaska.

However, the basic statute was amended April 9, 1943, as shown in 34 U. S. C. 533 to add the following provision:

(2) At naval stations and post exchanges within the continental United States, in time of war and not exceeding six months thereafter, when the Secretary of the Navy finds that it is impracticable for the said civilian officers and employees and other persons to procure such stores from private agencies without impairing the efficient operation of the stations. The Secretary of the Navy may prescribe regulations governing sales under this section.

It is this second provision which the Navy seeks to have continued by the enactment of section 1 (a) (19) of House Joint Resolution 386 until such time as permanent legislation is secured, which is now under active study in the Department of Defense.

The Navy has only two isolated commissary stores for which the legislation is necessary: First, at the Naval Ordnance Test Station, Inyokern, China Lake, Calif. This station is out in the middle of Mojave Desert and all civilians living on the station are authorized to buy, since the station is 80 miles from the nearest town and 120 miles from the nearest city.

Second, at the Navy Ammunition Depot, Crane, Ind., where 12 civilians have been given permission to procure commissary merchandise at the store since the nearest city is approximately 30 miles

away.

In addition, there are possibly 20 to 24 other isolated exceptions to the rule that civilians may not purchase at a commissary store. Full-time civilian employees residing on or within the confines of a station may, if their duties require their presence on the station full time, be granted privileges. Examples are: Fire fighters or fire chief at out-of-way station; superintendent of fuel-oil facilities who may be needed on location as long as 3 days and nights loading or unloading tankers.

Mr. HILLINGS. The Navy maintains the ship's store, not actually in the Embassy in London, but adjoining the Embassy. The provision here does not apply to overseas civilian personnel, as I understand it. Is that right?

Commander MOSER. That is correct, sir. This provision that we are discussing applies only to those cases within the continental limits of the United States.

Mr. HILLINGS. What particular authority is there for civilians to purchase at ship's stores overseas?

Commander MOSER. The basic legislation, sir, specifically authorizes

that.

Mr. HILLINGS. It does not make any provision in that basic legislation as to peace or war?

Commander MOSER. No, sir.

Mr. PICKETT. You specifically mentioned two instances, one in California and one in Indiana, and described the nature of the posts. Following that you used a figure of 24 other isolated instances. I did not quite catch the point. Would you enlighten me on that, please?

Commander MOSER. Yes, sir. There are 10 locations inside the United States where the Secretary of the Navy has given specific authority to specific individuals. Each case is settled on its own merits as to whether or not the permission is to be given.

Mr. PICKETT. May I interrupt you at this point. The two instances in California and Indiana that you have described are the only two where general access to the ship's store is given to all civilian employees at those stations. Is that right?

Commander MOSER. Actually, Mr. Pickett, China Lake, Calif., is the only one that falls within the category you mentioned; but at Crane, Ind., there are 12 individuals who are authorized.

Mr. PICKETT. These other 24 instances, then, are

Commander MOSER. Are above and beyond these two cases; yes, sir. Mr. PICKETT. And they deal with certain specific personnel actually named by the Secretary of the Navy?

Commander MOSER. Yes, sir; that is correct.

Mr. PICKETT. In what types of work are they engaged now so that we might have that for the record?

Commander MOSER. Fire fighters, fire chiefs, superintendent of fuel-oil facility. At Bainbridge Md., I know there is a United States food inspector who has to be available 24 hours. All people living within the confines of the station in Government housing, whose work necessitates their being present for a 24-hour period.

Mr. PICKETT. I believe that is all, Commander, thank you.

Mr. BURRUS. The next item is on page 21 at the top of the page. It is section 1 (a) (25) of the bill. It involves the utilization of the American National Red Cross in aid of the Armed Forces.

The provision provides that in time of war or when war is imminent or when there is a threat of hostilities, the President is authorized to accept the assistance and to employ the American National Red Cross to assist the Armed Forces; and transportation, subsistence and waiver of passport fees for Red Cross personnel are authorized. We included this item in the bill because even in emergency periods it cannot always be clearly established that war is imminent or that there is a threat of war.

1 (a) (25) Item 10

AID TO LAND AND NAVAL FORCES IN TIME OF WAR

Whenever in time of war, or when war is imminent, the President shall find the cooperation and use of the American National Red Cross with the land and naval forces to be necessary, he is authorized to accept the assistance tendered by the said Red Cross and to employ the same under the land and naval forces in conformity with such rules and regulations as he may prescribe. As amended June 29, 1943, c. 176, Item 1, 57 Stat. 247.

1 (a) (25) Item 11

TRANSPORTATION, SUBSISTENCE, AND PASSPORT FEES

When the said Red Cross cooperation and assistance with the land and naval forces in time of war or threatened hostilities shall have been accepted by the President, the personnel entering upon the duty specified in section 10 of this title shall, while proceeding to their place of duty, while serving thereat, and while returning therefrom, be transported and subsisted at the cost and charge of the United States as civilian employees employed with the said forces, and no passport fee shall be charged or collected for any passport issued to such personnel so serving or proceeding abroad to enter upon such service, and the Red Cross supplies that may be tendered as a gift and accepted for use by the land and naval forces shall be transported at the cost and charge of the United States. As amended June 29, 1943, c. 176, Item 2, 57 Stat. 248.

STATEMENT OF MAJ. JOSEPH B. HANNAUER, G-1, MORALE AND WELFARE BRANCH, DEPARTMENT OF THE ARMY

Major HANNAUER. I am Major Hannauer. I represent the Department of Defense. The purpose of this legislation is to authorize the President to continue the acceptance of the American Red Cros during the present national emergency proclaimed by the President on December 16, 1950, and under the same conditions as have prevailed since the national emergency was proclaimed in 1939 and 1941.

Due to the expansion of the Armed Forces, which involves the recall of reserves and national guard to active duty, and the increasing number of family separations by reason of duty at overseas bases, it is believed that the services provided by the American Red Cross will be in even greater demand in the future than at the end of hostilities in World War II.

The American National Red Cross, pursuant to its charter by the Congress of the United States, provides welfare, communication, and recreation services to the Armed Forces of the United States. These services were extended and expanded during World War II at the request of the Secretary of War and were accepted by the President of the United States.