Table 42.--Metalworking Machinery Costing $500 or more each in the United States, excluding Alaska and Hawaii, - by Military Department and Production Equipment Code as of 30 June 1960 DEPARTMENT OF DEFENSE Industrial Funds are authorized by Section 405 of Title IV of the National Security Act, as amended. The use of industrial funds permits the financing of industrial or commercial type activities and the development of production costs to be used as basis for charging the appropriations of customers for the products or services furnished to them by the activity financed by the Fund. As of 30 June 1960, 60 activities in the Department of Defense were operated under industrial fund charters. The Army operated 24; the Navy, 33, one of which is a printing activity located in 31 separate plants; the Air Force 3 (one of which is a printing activity located in 9 different plants, another is a laundry and dry cleaning activity operated at 48 installations). The total inventories, consisting of raw materials, supplies and workin-process, held in all industrial funds in the Department of Defense amounted to $330 million on 30 June 1960. This is a decrease of $41 million during the year. Section E Excess, Surplus, and Foreign Excess Personal Property (Table 44) As of 30 June 1960, the Department of Defense had on hand $4.5 billion of personal property on which disposal action had been initiated by a military department and was either (1) in the process of being screened for further utilization or (2) had been screened by all the military departments and was in the process of disposition. This total of $4.5 billion was $500 million greater than the total at the end of the previous fiscal year, with each military department reporting an increase. Table 44.--Excess, Surplus, and Foreign Excess Property The domestic excess and surplus inventory (covering United States, Puerto Rico and the Virgin Islands) amounted to $4.1 billion or 90.9 percent of the total whereas in all other areas amounted to $0.4 billion or 9.1 percent. of the DOD total of $4.5 billion, on hand, Army's share amounted to $1.4 billion or 31.6 percent; Navy (including Marine Corps) $1.6 billion or 35.8 percent; Air Force, $1.5 billion or 32.6 percent. Navy and Air Force each reported less than 5 percent of its total on hand in foreign areas, whereas Army reported about 23 percent as foreign. Public Law 883, 80th Congress, the "National Industrial Reserve Act of 1948," provides for establishing "adequate measures whereby an essential nucleus of Government-owned industrial plants and a national reserve of machine tools and industrial manufacturing equipment may be assured for immediate use to supply the needs of the Armed Forces in time of national emergency or in anticipation thereof." The properties still owned by the Government are managed by the General Services Administration (as successor to the Federal Works Agency) under general policies established by the Secretary of Defense. Since the Department of Defense has a contingent claim and production priority rights in all the National Industrial Reserve plants, including those which GSA has disposed of or leased with a National Security Clause, data on these are included in this section of this report. However, none of the properties in this Reserve has been included in the totals for real |