Page images
PDF
EPUB

FINANCE SERVICE, ARMY

WITNESS

MAJ. GEN. E. M. FOSTER, CHIEF OF FINANCE SERVICE, ARMY
Mr. MAHON. We will proceed first with the Finance Service, Army.
GENERAL STATEMENT

General FOSTER. Mr. Chairman and members of the committee, the 1951 supplemental estimates for finance service, Army, now before you total $247,920,000. Of this amount $193,090,000 is requested for pay of the Army, $50,800,000 for travel of the Army, and $4,030,000 for finance service. The supplemental requirement is directly attributed to the planned increase in troop strength resulting from the Korean situation.

I should like to ask, if I may, that any reference to troop strength in my statement be kept off the record.

(Discussion off the record.)

General FOSTER. The $3,915,000 requested for civilian personnel is required at field level due to the general expansion in workload at military headquarters resulting from the increase in troop strength and acceleration in troop movement. The number requested includes headquarters support at reactivated stations and contemplates maximum utilization of civilians in the release of military personnel for military duty.

Of the 50.8-million-dollar increase in travel of the Army, 47.7 million dollars is required for permanent change of station travel and 3.1 million dollars for temporary duty travel in connection with essential administrative and operational activities of the Army. The amount requested for permanent change of station falls into three major categories: (1) Travel incident to the reassignment of training personnel required by the increase in troop strength, including authorized transportation of dependents and household good; (2) travel of individual trainees from recruiting or induction stations to replacement training centers, their assignment to units after completion of the training cycle, and for any subsequent move of the unit, including transportation of organizational equipment; and (3) the movement of individuals and troop units under wartime conditions resulting from the Korean situation, including movement of dependents, household goods, and organizational equipment.

Of the $4,030,000 requested in Finance Service, 3.6 million dollars is required for pay of field employees of the Finance Department, $180,000 for field employees of the Army Audit Agency, and $250,000 for field employees of the Comptroller.

The funds requested for the Finance Department are required to augment present civilian strengths at

(a) Finance offices, United States Army, whose primary function is the payment of contractual obligation of the Army.

(b) The Transportation Division of the Washington Finance Office, which pays all travel transportation accounts of the Army and Air Force.

(c) The Army Finance Center, St. Louis, which renders a common service to the Army and Air Force in paying allotments and insurance payments for military and civilian personnel; maintaining central accounting; administering soldiers' deposit accounts; and receiving, adjusting, and tabulating all military pay accounts.

(d) Army area finance offices who pay troops, civilian employees, and commerical accounts at camp, post, and station level.

The work load of these activities will increase in direct proportion to the increase and acceleration in Army procurement and troop strength.

The $180,000 increase in audit personnel is required to protect the Government's interest by extending audit coverage over new and accelerated Army contracts.

The $250,000 requested for Comptroller activities is to provide additional personnel in an area directed at improving the business administration of the Army.

This concludes my statement. Representatives of the General Staff are here to answer any questions you may have on the troop basis for the estimates.

Mr. MAHON. General Foster, the funds requested here are the funds. that will be required if we have to have these additional men? General FOSTER. That is right.

Mr. MAHON. And pay the necessary expenses incident to them? General FOSTER. That is right.

Mr. MAHON. It is just a protection of your regular program as set forth in your justifications earlier in the year of the needs of the Finance Service, Army?

General FosTER. That is correct.

Mr. MAHON. And if we have these additional men, we have to arrange for their care?

General FOSTER. That is right.

I would like to emphasize that in this estimate there is no money to provide for legislation pending in Congress such as legislation for family allowances, which will go into effect in a bill in the next few days. There is no money in here for that.

Mr. MAHON. I understand.

Mr. ENGEL. General Foster, your original budget estimate submitted to Congress was for 630,000 officers and men.

General FosTER. That is correct.

Mr. ENGEL. This budget is for the difference between 630,000 and the number that you are going to have.

General FOSTER. That is right, brought in by increments.

(Discussion off the record.)

Mr. ENGEL. And those men are to be added as you require them? General FOSTER. That is right.

Mr. ENGEL. And of course there will be a partial year's pay and allowance item for that number of men?

General FOSTER. That is right.

Mr. ENGEL. Until the 30th of June 1951?
General FOSTER. That is right.

Mr. ENGEL. Does that work out proportionately about the same as the original budget per man?

General FosTER. Yes.

Mr. ENGEL. In other words, the amount per man that you are adding, if it is carried through for a full year, will be approximately the same as that you have here with the exception that as your numbers go up there is a slight reduction in cost?

General FOSTER. That is right.

QUARTERMASTER SERVICE

WITNESSES

MAJ. GEN. HERMAN FELDMAN,

UNITED STATES ARMY

QUARTERMASTER GENERAL,

COL. S. Y. McGIFFERT, TROOP INFORMATION AND EDUCATION DIVISION, OCI, DA

LT. COL. HOWARD G. SMIGELOW, CHIEF, BUDGET AND FISCAL BRANCH

Mr. MAHON. We will now take up the Office of the Quartermaster General.

GENERAL STATEMENT

General FELDMAN. The supplemental estimate for the appropriation "Quartermaster Service, Army," amounts to $405,515,873, of which $265,444,135 is to cover requirements in connection with the expansion of the Army and $140,071,738 is included to cover combat support of a stated number of troops in the area of conflict.

The estimate covering fund requirements for expansion is computed in the usual manner on the basis of consumption requirements and increased stock levels less excess assets available from inventories. The estimate for funds necessary in supporting a task force includes only such costs as are in excess of the normal peacetime requirements of this force, such as the difference between the normal and combat rations, estimate of combat losses, pilferage, deterioration, and other losses, all of which are based on World War II experience factors.

SUBSISTENCE

The estimate for this subappropriation is computed on the basis of food prices as of May 31, 1950, adjusted downwards to reflect anticipated price trends. In this connection, the supplemental estimate includes approximately $34,000,000 to cover a deficiency in the basic fiscal year 1951 estimate due to price increases over the amount allowed in this estimate. The original estimate now under consideration by the Senate was based on a ration cost of 90 cents, whereas the prices used in this supplemental are based on a ration cost of approximately

98 cents.

REGULAR SUPPLIES

The estimate of funds required for expansion of the Army amounts to $24,336,052, whereas the estimate of funds considered necessary to support and maintain the task force amounts to $18,593,774. In general, this subappropriation covers such items as mess and kitchen equipment; sanitary supplies; warehouse equipment; petroleum and petroleum handling equipment; packing and crating supplies and equipment; and materials handling equipment for all services, such as fork lift trucks, ammunition handling trucks, plane loaders, straddle trucks for lumber, and so forth.

The funds required for expansion of the Army have been computed on the basis of peacetime operation less the application of available

assets, whereas the estimate for support of a task force includes only the additional costs incidental to such support, such as estimated combat losses and increased pipeline for support to the Air Force, Navy, and Marines.

CLOTHING AND EQUIPAGE

This portion of the estimate includes funds required for the purchase of individual and organizational clothing and equipment, as well as funds incidental to maintenance, alteration, and salvage activities, and the operation of quartermaster laundries and dry-cleaning plants.

The estimate for the expansion of the Army amounts to $103,510,010, and the funds considered necessary for the support of the task force amount to $49,306,761. In computing the estimate for personnel engaged in maintenance and laundry activities, the salaries of indigenous personnel in Japan and Korea are included as a direct charge against this appropriation instead of being considered as available from the economy of the country as was done in the regular estimate for 1951.

INCIDENTAL EXPENSES

The estimate of funds considered necessary for the expansion of the Army amounts to $19,591,994, and the estimate for the cost of supporting the task force has been computed at $13,434,285. To accomplish the assigned mission of the Quartermaster Corps, it is essential that the quartermaster activities at posts, camps, and stations and at the branch and general depots be expanded in comparison to the workload imposed. In addition thereto, this estimate includes the fund requirements for personnel employed by other technical services within the general depot system for which the Quartermaster General has administrative and budget responsibility. For example, the estimated requirement of 3,693 personnel in general depots includes 1,242 for Engineers, 304 for Ordnance, 47 for The Adjutant General, 669 for Signal, 86 for Medical, 131 for Chemical, and 21 for the Transportation Corps.

The estimate of funds required for disposition of remains is based on the principle of battlefield burial in the combat area, but covers requirements for disposition of remains for the expanded Army accumulated in other areas.

The estimate of $5,084,768 for recruiting expenses is based on an anticipated workload which includes the handling of inductees, as well as voluntary enlistments. Past experience indicates that approximately five individuals will be processed for each man inducted.

It is estimated that funds required for the procurement of chaplains supplies and equipment will amount to $33,605 for the expanded Army and $8,400 for the support of the task force, a total of $42,005.

The computation of fund requirements for this estimate has been based on the numerical strength and deployment indicated. Any substantial change in either of these factors would naturally affect the amount of funds required. The estimate for operational activities, such as depots, maintenance shops, and so forth, has been computed on the basis of experience factors derived from the monthly cost accounting reports of these installations.

COMPUTATION OF SUPPLEMENTAL REQUESTS

I would like to say that our computations are based upon our usual way of basing them and were applied in the usual manner to the requirements of the troops. We have already taken action to procure our winter clothing and the parachutes of the Air Force. I am prepared to answer any detailed questions.

Mr. MAHON. If you are going to have more men you will have to feed and clothe and provide for them.

General FELDMAN. Yes.

Mr. MAHON. And if some of the men in the service are engaged in combat in far-away theaters of operation, there are certain additional expenses incident to that sort of condition.

General FELDMAN. That is correct.

Mr. MAHON. And you have found it necessary to compute those requirements and have taken that into account in preparing this request to us here today?

General FELDMAN. That is right.

Mr. MAHON. Is there any special difference otherwise in the computation of your requests for the supplemental budget and your regular budget which was presented to us earlier in the year?

General FELDMAN. There is no difference in our approach in computing those requirements. The special requirements have been given special attention. For example, we have the computation of requirements for parachutes. That was assigned to us a short time ago. It was transferred from the Air Force to the Army.

Mr. MAHON. You cannot foresee what the price trend will be, of course, in subsistence, but you are taking it for granted that there probably will not be much variation?

General FELDMAN. We are hoping not. As of the moment it is higher than it was originally within the estimate, but the fluctuations may be up or down.

Mr. MAHON. You have to make an educated guess on what you request?

General FELDMAN. Yes.

Mr. SHEPPARD. Regarding the general statements that have been made insofar as the requirements are concerned under the present budget that the committee has under consideration, I think the details have been supplied.

Mr. ENGEL. We have $887,463,000 for increase in number of men; is that right?

General FELDMAN. That is correct.

Mr. ENGEL. In other words, we are adding $408,000,000, or almost double the amount, for this extra number of men. That, obviously, cannot be the money for the men themselves; it must be for filling up the pipeline to Korea and the extra costs of that type.

Just what are those extra costs that make the figure run into extra money?

General FELDMAN. I can go through it in detail.

Mr. ENGEL. I do not want to take time for the detail. Will you submit a detailed statement to the committee, showing that breakdown? General FELDMAN. Yes.

« PreviousContinue »