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Naval working fund, operations (July 1, 19.36, to June 30, 1937)

$1, 236, 473. 41

Balance June 30, 1936_---

Other Government departments---
Foreign powers
Special depositors.-
Condemned material sales (guarantees and payments for

Surplus-material sales (guarantees and payments for ma-


6, 2.57, 1272

2.), 613 811, 610,3

1, 731, 351.6


10, 086, 224.21

Expenditures :
Other Government departments :

$61, 775. 53

5, 969, 044. 13 Foreign powers: Expenditures.

12, 596. 28 Special depositors : Refunds

53, 085, 61

650. 874. 98
Refunds to bidders and expenses of sales :
Condemned sales :
Refunds to bidders -

261. 593. 77
Expenses of sales-

217, 804. 30 Surplus sales: Expenses of sales-

2, 326. 66 Transfers to appropriations and miscellaneous receipts: Miscellaneous receipts (special deposits).

26, 123. 6. Naval hospital fund (special deposit)--

6, 700. 60 Miscellaneous receipts (condemned sales). 903, 209.58 Naval supply account fund (condemned sales) - 369, 101.53 Clothing and small stores fund (condemned sales)-

44, 050. 26 Miscellaneous receipts (surplus sales)

107. 79

8,578, 3967, 1

1, 507, 8290

Balance June 30, 1937.
Analysis of balances:

Appropriation inade by ('ongress.
Balance due special depositors.-
Cash received from bidders (condemned material.
(ash received from bidders (surplus material)--
(ash received from other Government departments
Cash received from foreign powers..

100, ON O 163, 909.7 605, 621.3

1. 437 611, 2.3 13, 373. 1

1, 555, 641.6

Less work done for other Government departments and foreign powers not yet paid for by credit to the naval working fund..

Balance June 30, 1937

47, 812.3

1, 507, 8:29.

5, 2.4. 093

Balance June 30, 1936_ Receipts

833, 2

6, 097, 31.5.

Expended during 1937.
Refunded during 1937-

$5, 094, 248, 27

460, 528. 68

5, 554, 776

532, 38

Balance June 30, 1937



In addition to the amount of $100,000 appropriated in the Naval Act, May 28, 1924, the “Naval working fund” is credited with reeipts from the following sources:

Special deposits.- Deposits by private parties to cover the cost of work to be lone by the various navy yards and stations.

Condemned sales.-Deposits by bidders on sales of condemned material. Payments by successful bidders for material sold to them.

Surplus sales.--Deposits by bidders on sales of surplus material. Payments y successful bidders for material sold to them.

Other Gorernment departments.-Funds received for small jobs of work not overed by an advance payment when collected are credited to the fund. Adance payments for large jobs when advances are made in cash.


The fund is debited with the following items: Special deposits.—With all labor and material expended in accomplishing the fork required, with refund of the unused balance of the deposit, and with any rufit made by the transaction when the profit is turned into the Treasury as I credit to “Miscellaneous receipts."

Condemned sales.-With the amount of all refunds of the deposits of unsucpxsful bidders, with the cost of preparing the material for sale, with the cost of packing and shipping material sold, and with the net proceeds of the sale when turned into the Treasury.

Expenditures under the “Naval working fund” are controlled by allotments authorized as follows:

ALLOTMENTS Special deposits.-All deposits by private parties for work to be done by the Navy Department are automatically allotted to the naval station receiving the funds. These allotments are available until expended.

condemned sales.-Refunds to unsuccessful bidders are made by automatic allotments. Expenses of sales must be covered in advance by an allotment to the station making the charge. These allotments are available only for 1 month. The net proceeds of the sale are transferred to the surplus fund of the Treasury, the naval-supply account fund, or the clothing, and small-stores fund, as may be appropriate, by the action of the Bureau of Supplies and Arrounts.

Surplus salex.-Refunds to unsuccessful bidders are made under automatic a lotments. Expenses of sales must be covered by allotments made in advance of the expenditure to the station making the charge. The net proceeds of sales are transferred to the surplus fund of the Treasury by action of the Bureau of Supplies and Accounts.

Other Gorernment departments.-Allotments are made on a monthly basis to the various navy yards and stations to cover expenditures under small jobs of work for other Government departments where no advance is received prior to the completion of the work. For all jobs in excess of $1,000 an advance must be received prior to beginning the work. These advances received are a lotted to the various yards and stations and are available until expended.



[’nder authority of the act of August 5, 1882 (22 Stat. 296), and June 8, 1896 (29 Stat. 268), governing the sale and disposition of naval property, and the act of May 28, 1924 (43 Stat. 195), creating the naval working fund, the expenses incurred at navy yards in connection with the disposal of surplus and condemned naval supplies are charged to the funds realized from such sales.

At the larger navy yards it is necessary to maintain a small force of clerks, stockmen, and laborers, who are engaged exclusively upon the work of collecting, scheduling, invoicing, sorting, and arranging materials for sale and delivery to purchasers.

The amounts now obligated against the naval working fund as expenses of sales on account of regular and permanent employees and the amount expended for 1937 are as follows:

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The distribution of these expenses by stations is as follows:

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Mr. UMSTEAD. Admiral, I believe the naval working fund carrie no item of direct appropriation to that fund in this bill.

Admiral CONARD. No; this is a self-balancing fund.

Mr. UMSTEAD. It is a bookkeeping matter within the Department dealing with appropriations appearing under other items and classi fications? Admiral CONARD. Exactly so.

INDUSTRIAL RECOVERY ACCOUNT Mr. UMSTEAD. The next item is the “Industrial recovery account.

Admiral CONARD. The statement of the industrial recovery ac count is as follows:

Industrial recovery account (July 1, 1936, to Sept. 30, 1936) in hand July 1, 1936.

$2,477, 656. 15 eceived: From purchase.

4, 652, 489. 42 From manufacture_

2, 955, 695. 23 By survey and price adjustment.

19, 373. 49 By inventory-

11, 452. 01

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New and reclaimed materialrom appropriation purchases account transfers between accounts.

Expended :

For use and to manufacturing account---
To ships, title C, and on miscellaneous invoices.-
To equipage account.---

Final expenditures and to manufacturing-
To naval supply account...
To appropriation purchases account.

To transfers between accounts.
On hand Sept. 30, 1936_-

$965, 440. 31 199, 953. 14 802, 004. 85

1, 967, 398. 30

39, 942. 24 8, 109, 567.88

8, 149, 510. 12

Total ---

10, 116, 908. 42 The industrial recovery account was established to handle materials required in connection with projects under National Industrial Recovery appropriations. The project having terminated, the account was balanced and closed September 30, 1936.

Mr. UMSTEAD. Admiral, I believe that this account involves no item of appropriation, but is merely a bookkeeping account dealing with moneys heretofore allotted to the Navy Department out of emergency funds.

Admiral CONARD. That is precisely correct.



For pur

Mr. UMSTEAD. Admiral, we will now take up the appropriation "Pay, subsistence, and transportation, Navy.”

Admiral CONARD. This appropriation covers the pay, subsistence, and transportation of naval personnel, including both active and retired officers, midshipmen, nurses, and enlisted men. poses of administration it is divided into three general heads, viz: !1) Pay, (2) subsistence, (3) transportation. Each of these heads is further divided into subheads, or projects, but they are all closely related. For example, when a man is placed on the rolls, he must not only be paid, but also subsisted and transported to his place of duty: The estimate is, therefore, prepared to cover the cost of the numbers of personnel of the various ranks and grades. There follows a table which shows the average numbers of the various classes of personnel in prior years, and the estimated requirements for 1939.


Mr. UMSTEAD. That table and the one following may appear.! the record at this point. (Said tables are as follows:)

Comparison of personnel for fiscal years 1939, 1938, 1937, and 1936

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Comparison of estimate for 1939 with number of officers of Line and Staff Cor;

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| Additional numbers not included in this column.
: Additional numbers are included.
• Subject to change dependent upon actual number of Navy and Marine Corps personnel.

Admiral Conard. The appropriation for 1938 and the estimate for 1939 are based on full rates of pay and the restoration of all proniotions and increases for longevity.

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