Mr. THOMAS. Are those elements all clear to you now?

Admiral BLANDY. Yes.

Mr. DITTER. Mr. Thomas, will you yield for a suggestion?

Mr. THOMAS. Yes.

Mr. DITTER. Why should not that include any more than the $1,000,000 contract; why should not that include all of the major contracts?

Mr. THOMAS. I was trying not to burden down his office.

Mr. DITTER. I mean major in the sense that it leaves some discretion to the admiral. You see, there might be one that would be a thousand or two thousand below the million dollars you set, that we would not have information on.

Mr. THOMAS. Yes; that will be fine.

Mr. DITTER. Add to that a table showing when the contracts were let and the probable dates on which payments will be required. Mr. THOMAS. Payment or delivery?

Mr. DITTER. The probable date when payments will be required. Admiral BLANDY. The date of completion?

Mr. DITTER. I am referring to the payments that you have to make under the contracts.

Admiral BLANDY. That will be a number of dates.

Mr. STARNES. Do you object to including in your question, Mr. Thomas, the number of contracts let under the original Lease-Lend Act, with the total amount of the contracts, by States?

Mr. THOMAS. I asked for the locations and the names of the firms. Mr. STARNES. I would like to have it by States.

Mr. DITTER. I will take my request out. I withdraw mine.

Admiral BLANDY. You want a statement of the contracts, the locations, the date the contract was awarded, the amount of the contract, the date of the first delivery, and of completion?

Mr. THOMAS. And the facilities required.

Admiral BLANDY. Suppose I state that separately.

Mr. THOMAS. All right.

The CHAIRMAN. Can you prepare a table in that great detail? Admiral BLANDY. I have practically all of it right here, but I do not have all of it. I would like to have by the end of the week to prepare it.

(The table requested is as follows:)

Geographical distribution of Navy defense-aid obligations-major contracts

State:
Ohio_
New York_
Indiana__
New Jersey.
Pennsylvania_
Florida
California.

1

Washington_.

Delaware..

Michigan

North Carolina__

Virginia

Massachusetts

West Virginia__-
Texas----

1 A great deal of this is subcontracted in the United States.

The CHAIRMAN. Are there any further questions on this item? Mr. WIGGLESWORTH. Admiral, can you furnish for the record a table of the prospective payments, month by month, for plant financing on the basis of the articles you are making?

Admiral BLANDY. Yes, sir.

(The table is as follows:)

Elsewhere in the record has been inserted a table showing the distribution of contracts by States in detail. The following information is taken from this table:

Mr. WIGGLESWORTH. Do you have anybody on the other side who represents you directly and who checks on the needs or the availability of facilities over there before you pass on requests presented to you? Admiral BLANDY. I have been attempting to do that in a general way, but I do not have complete information.

Mr. WIGGLESWORTH. You do not have anyone specifically assigned to that job?

Admiral BLANDY. Not by me.

Mr. WIGGLESWORTH. Your approval of requests for the most part is in terms of the requisitions of the British officials and on what we manufacture for our own use?

Admiral BLANDY. I understand that that was one of the purposes for which Mr. Harriman went to England and for which Mr. Biggers is now serving.

Mr. WIGGLESWORTH. They have not reported?

Admiral BLANDY. I have not had any yet. Mr. Glancy, of the Office of Production Management, looked into what the British were wanting to use over there as compared with our own wants. There were only two items covered. I should say, however, that the Office of the Chief of Naval Operations also passes on the need for all items.

Mr. WIGGLESWORTH. Do you have any advice as to the facilities and the needs when you are approving these requisitions before you? Admiral BLANDY. None except what I receive from the British Admiralty Technical Commission.

Mr. WIGGLESWORTH. In this country?

Admiral BLANDY. Yes, sir. We get information from them. They give us technical information as to the manufacture of this ordnance, but, of course, the facilities are selected by us. We know what we have to have to make them.

The CHAIRMAN. Mr. Starnes is recognized.

NUMBER AND VALUE OF CONTRACTS BY STATES

Mr. STARNES. Admiral, will you please furnish for the committee a statement by States of the amounts and number of contracts let, in tabular form, procured from funds handled by the Navy under the lend-lease appropriation?

Admiral BLANDY. For ordnance?

Mr. STARNES. I want the whole thing for the Navy. It would not take much time to show the number of projects in a State. It would not require much work to show that there were 10 projects in some State, indicating what State it is.

Admiral BLANDY. Do you want that now?

Mr. STARNES. I want that inserted in the record.

Admiral BLANDY. For ordnance or for the entire Navy?

Mr. STARNES. I want the statement to cover the entire Navy output or outgo. I do not care about the names of the firms or the individual amounts. I am asking for the number of contracts let by States, with the total amount of those contracts for each State, the statement indicating where those facilities are located. Mr. LUDLOW. You mean under the lease-lend funds?

Mr. STARNES. Yes; under the original lease-lend appropriation. Admiral BLANDY. The request does not involve the pieces of material, because that is confidential.

Mr. STARNES. I do not want any confidentail information. I do not care who the contractors are, but I simply want to know the number of contracts and the total amount by States, and a statement of where the facilities are located.

(Table is inserted previously in record.)

TIME REQUIRED TO COMPLETE DELIVERY OF MATERIAL

Mr. ENGEL. Admiral, you have been allocated the amount referred to under the original lend-lease bill, and you are also being allocated another amount under this $6,000,000,000 lend-lease bill. Under that, you have let certain contracts, and I want to know if you can give us any idea as to how long it will be before the last article will be manufactured by these two appropriations, and when they will be delivered. Will it be 2, 3, 4, 5, or 6 years?

Admiral BLANDY. It will be by the end of 1943, with the exception of a few articles.

ESTIMATED CASH WITHDRAWALS BASED UPON CONTRACTS LET

The CHAIRMAN. The gentleman from Pennsylvania, Mr. Ditter, is recognized.

Mr. DITTER. Admiral, the amount you are presently requesting for ordnance and ordnance stores, added to the allocation under the previous Lend-Lease Act, is $517,000,000. Is that right? Admiral BLANDY. It is more than that, I think.

Mr. DITTER. Excuse me-it is $712,303,000; is that right?
Admiral BLANDY. I believe so; yes, sir.

Mr. DITTER. And of that amount, up to date, you have spent only $5,000,000. Is that right?

Admiral BLANDY. In actual disbursements, I believe that is correct. I would like to have an opportunity to verify those figures.

Mr. DITTER. You may correct them. Now, then, I would like to have a table, if you can furnish it, giving the committee an estimate, month by month, based upon your contractual obligations, of how the payments will fall due for ordnance and ordnance stores over the next 12 months. In other words, a statement based on what your past experience has been, based on what your estimates are, and based on what you believe will be the acceleration possible as a result of acquiring new facilities. In other words, we want to know when you will have to spend money for ordnance and ordnance stores that will consume all or a part of this $712,000,000, plus.

Admiral BLANDY. I will furnish that information.

MANUFACTURE OF TORPEDOES

Mr. DITTER. Admiral, we are making torpedoes at Alexandria and Norfolk, are we not?

Admiral BLANDY. At Alexandria and Newport, for manufacture; at Keyport, Wash., for modernizing obsolete types.

Mr. DITTER. We have no other Government torpedo plants, have we? Admiral BLANDY. Not yet, but we are negotiating for one more. Mr. DITTER. But that is not in existence now?

Admiral BLANDY. No, sir.

Mr. DITTER. It is in contemplation?

Admiral BLANDY. It is more than in contemplation. We are actually negotiating for it, under authority of the Secretary of the Navy.

Mr. DITTER. Do you mean that you will build there the new type of torpedo you discussed with us at the last hearing?

Admiral BLANDY. No, sir; that torpedo has not reached the stage of development where we would attempt to make any of that type now, but, in the meantime, we will make there one of the several types that we are already producing.

Mr. DITTER. Will any of these lend-lease torpedoes be made at our own plants or other plants? Will they be made at our plants or at plants other than ours?

Admiral BLANDY. They will be made at plants other than our own. Mr. DITTER. How long has the Alexandría plant been in operation? Admiral BLANDY. It was before I became chief. It has been within the past year that the plant has been in production. Mr. DITTER. A little less than a year.

Admiral BLANDY. In actual production; yes, sir.

PUTTING NEW FACILITIES INTO OPERATION

Mr. DITTER. Do you feel that you have been fairly successful in putting naw facilities into operation?

Admiral BLANDY. Personally, I do not feel that I have been as successful as I would like to be. However, I would prefer to have others in a higher position than mine say whether I have been successful to a satisfactory degree.

Mr. DITTER. I did not mean that personally. I mean whether, as administrator of the bureau, you feel that you have been successful in securing all the available facilities.

Admiral BLANDY. I think I have been fairly so; yes.

Mr. DITTER. Going back to the facilities item, do you have anything in prospect in the way of facilities that you have not yet

tapped, or the possible replacement of facilities, that you think will accelerate your production program?

Admiral BLANDY. I have figured on about $5,000,000 for additional lease-lend facilities. There will be money left from the other bill to add to that for these contemplated additional facilities.

Mr. DITTER. Whatever we have in the way of facilities for manufacture is being taxed at the present time in production for our own needs and for lend-lease needs; is that right?

Admiral BLANDY. Yes, sir.

PREMIUMS ON BONDS FOR COMPLETION OF CONTRACTS

Mr. DITTER. Admiral, is any part of the funds you are requesting at the present time to cover the cost of bonds for completion or any items of that kind, in connection with the contracts you are letting?

Admiral BLANDY. I think Admiral Spear can answer that question better than I can.

Mr. DITTER. Admiral Spear, I want to know whether any of the funds included in this $270,305,500 is for the payment of the premiums on bonds for completion, or items of that kind, having to do with the contractual relationship existing between the Government and the private producers. Is any part of it to be used for the payment of premiums on bonds for completion or premiums on any other bonds? In other words, is it the practice of the Government to require of the producer a bond to insure that he will fulfill his obligation within a certain period of time?

Admiral SPEAR. Performance bonds; yes, sir.

Mr. DITTER. The bond is actually provided by a bonding company, is it not?

Admiral SPEAR. Usually; yes, sir.

Mr. DITTER. The Navy passes on the financial stability of those bonding companies?

Admiral SPEAR. That is done by the Treasury Department.
Mr. DITTER. Somebody passes on it?

Admiral SPEAR. Yes, sir.

Mr. DITTER. I want to know whether any of the funds here will include the cost of premiums on any such bonds. In other words, do you make a contract with a private contractor and permit him to include in his cost the cost of his premium for the bond of completion?

Admiral SPEAR. I think you will find that the contract price does include the cost of the contractor. It includes the cost of the bond.

Mr. DITTER. Can you secure me a statement of the total amount of the Navy's requirement under the lend-lease, and a statement showing what amount of that allocation of funds represents premiums paid on account of bonds of completion?

Admiral SPEAR. I do not know whether I can make the contractor tell me what he has paid for his bond.

Mr. DITTER. Let us not haggle on this, but let us be practical about it. You certainly would know how much the contract is with the individual contractor, and what the principal of the bond would be. Admiral SPEAR. Yes, sir.

Mr. DITTER. You could very readily require any bonding company to say what the premium on such a bond would be, on a bond of $100,000 or any other figure.