They do not get a $100 money allowance but they are issued clothing p to that value of $100 if they need it. Mr. FRENCH. Is that true as to reenlisted personnel? Admiral PoTTER. I have this combined with the civilian clothag, the two together for 1924 amounted to $2,676,813.72. Then, sues are made free to members of the Naval Reserve Force in time peace up to the value of $30, and in time of war up to the value $100. Mr. FRENCH. What would that amount to in time of peace? Admiral POTTER. In time of peace, taking 1924 as an illustration, amounted to $376,451.72. An outfit of civilian clothing is also rnished free to men discharged from the naval service for bad conict or undesirability or inaptitude. They get a civilian clothing atfit to the value of $15. I have not that separately, but it is inuded in the first amount I gave you. Then, issues of clothing and uipment are made free to members of the Nurses' Corps (female) their first entry into the service. That runs from $86 up to $100. hat was effective in 1924 for the first time, I think. Then, we also ver in this total losses by marine disasters, shipwrecks, etc., and e paid out in 1924 $11,999.98 for that purpose. Our free issues 1924, made according to law, amounted to $3,107,616.52. That quite a considerable sum, and I just want to invite attention to e fact that before very long, perhaps by 1927, and certainly by 28, at that rate, we will probably have to ask for additional money this fund, since it represents a cash issue each year. We may ve to ask for additional money in this fund by 1927. Mr. FRENCH. You are not asking that this year because of the antity you have on hand coming over from the war. Admiral POTTER. Yes, sir; that is true. VALUE OF CLOTHING ON HAND JUNE 30, 1924.. Mr. FRENCH. What would you say is the amount of clothing you ve on hand, or what is the value of the stock?... Admiral РоTTER. On June 30, 1924, we had on hand at navy ds and stations stock to the value of $26,183,153.20; on board ps awaiting issue, $2,750,285.77; and in transit from one place another, or in process of manufacture, $2,466,315.55. In other rds, the value of the balance of stock on hand on June 30, 1924, aled $31,399,755.52. Mr. FRENCH. What is the stock that you have on hand from the Indpoint of its availability for use, and the likelihood of its being d? Is it active stock, dead stock, or inactive stock? Admiral РоTTER. Of the total amount of $31,399,755.52, we mate the active stock to be of the value of $13,000,000. Of t we have an annual turnover in the livestock of some 50 per The working stock that is in process of being handled or -orked amounts to $7,000,000. That is stock in process of manuture or sale. Mr. TABER. Goods in process. t. Admiral POTTER. Yes, sir. We do not actually make any cloth but we have what really is a sewing factory where material is assembled and cut. Mr. TABER, To be made into shirts, uniforms, etc.? Admiral POTTER. Yes, sir. The reserve stock, or the military reserve set up according to the operating plans, to be ready in the event of emergency, amounts to $4,500,000. That is based upon providing outfits for 65,000 enlisted men, but not complete outfits. That is for things that can not be gotten ready in the open market promptly. The inactive stock amounts to $6,500,000. What might be called dead stock at any given moment, for one reason or another, and that does not come under any of the above appellations, and which is probably destined for sale, amounts to $339,755. Mr. FRENCH. There is some use for the inactive stock? Admiral POTTER. There is a potential use for it. Mr. FRENCH. What would bring it about; military necessity? Admiral POTTER. Yes, sir; military necessity would bring it about eventually, or it might bring it about. We occasionally get some additional information or something that enables us to rework stock. We found that we were able to rework a lot of stock last year that formerly was regarded as inactive. In the salvage work last year the cost of conversion was $393,000, and if we had purchased the same material we would have paid $1,655,000 for it. Of the inactive stock of $6,500,000 the indications are that we will have to dispose of some $4,455,000. That is a matter that we have held off on now for six years, but we have come to the conclusion, or S. and A. have come to the conclusion, and Navigation concurs with us, that about that quantity of material will have to be sold. The Secretary of the Navy is giving the matter consideration at present. We have not yet gotten his authority to dispose of that $4,455,000 worth, but we believe now that that is the proper thing to do. Six years have passed since the war, and we have a very fair line on the Issues. The greater part of the $4,455,000 worth of uniforms will not be disposed of unless another war should come, and therefore we believe that they ought to be disposed of as the market allows, probably extending the write off through sales over a period of four or five years. Our recoveries of salvaged clothing have been exceedingly good from the start. I think it has averaged over 60 per cent. and in some cases it has been better than that. Mr. FRENCH. Would you expect it to average that much, as a whole? Admiral POTTER. Yes, sir. Our idea was to dispose of not more than $200,000 or $300,000 worth in any given year. Mr. FRENCH. Where does that money go? Admiral POTTER. Back into the Public Treasury as miscellaneous receipts. Mr. FRENCH. You can not get much for this dead stock? Admiral POTTER. Yes, sir; I think we will. I think we will get something pretty substantial for it. I should say we would get anywhere from 35, 45, or 50 per cent for it. Mr. FRENCH. It will not be simply writing it off as a loss. Admiral POTTER. No, sir; it is only relatively, so to speak, from the book values. Mr. FRENCH. How large a cash fund do you require to handle his small-stores account? Admiral POTTER. Do you mean how large we think would be dvisable? Mr. FRENCH. When you get down to the earth. Admiral POTTER. When we get this properly balanced, which will ndoubtedly be some years yet, we think that altogether a fund of 23,000,000 will be ample at the present size of the Navy. Mr. REED. That will be partly in cash and partly in credits going rough the General Accounting Office of the Treasury, and partly stock. Mr. FRENCH. At this time, counting all of those things, it amounts what? Admiral POTTER. The actual value of the clothing and small ores fund, on June 30, 1924, amounted to $36,029,927.66. The tual available cash amounts to $265,075.55. Mr. FRENCH. Of the $23,000,000 that you will ultimately want ow much will be in reserve stock? Admiral POTTER. $4,500,000. Mr. FRENCH. How much in free capital? Mr. FRENCH. What would you say as to the storage that you now ve? Where are your stocks stored? Admiral POTTER. They are stored at the principal navy yards d stations, notably at the naval supply depot in Brooklyn and the val supply station at Hampton Roads; at the navy yard at Mare Land, and at the navy yard at Puget Sound. Those are the four eat places, but there is stock at each of the smaller yards. NAVAL CLOTHING FACTORY, NEW YORK Mr. FRENCH. With regard to the industrial or the manufacturing anch of the work, will you tell the committee briefly about that? Admiral POTTER. The Navy's clothing factory is maintained at the val supply depot, 39th St. and 3rd Ave., South Brooklyn, New rk. There, uniforms for enlisted men are cut, or the cloth or aterial is cut, and distributed to groups of sewers. It is brought ek for inspection or modification. We call it the clothing factory. part of that is the so-called officers' uniform shop, which actually kes the clothes, as any tailor makes uniforms, for the officer sonnel and for the chief petty officers of the Navy. Nearly all eds of the Navy in the matter of clothing are met from this factory. h matters as caps for the officers, and equipment, such as swords, e, etc., we buy outside under contract. Mr. FRENCH. What would be the operating expense of that plant? Admiral POTTER. We can give you that information. The officers' form shop is self-supporting. The manufacture of uniforms for - men is a separate activity. Mr. FRENCH. Suppose you report them separately, and show to at extent the officers avail themselves of this institution. Admiral POTTER. I will do so. Naval clothing factory, Navy supply depot, New York Operating expense for fiscal year 1924: Material. Labor (direct and overhead) Total $1, 832, 360.02 477, 202.21 Officers' uniform shop, Navy supply depot, New York Operating expense for fiscal year 1924: 2, 309, 562. 23 Miscellaneous labor (pattern cutting, administration, janitor, Miscellaneous supplies (commissions, transportation, packing Clerical force and stationery Fuel (electricity, gas, water). Direct labor. Mr. FRENCH. We now take up the item of fuel and transportation. For 1925 you have an appropriation for this purpose of $14,500,000 and for 1926 you are asking $15,460,000. First, I would be glad to have you make any general statement you may have in mind. Admiral POTTER. For fuel and transportation for 1926 we are asking the sum of $15,460,000. The quantity of fuel required for vessels of the fleet on the present estimate has been computed by calculating the quantity of fuel which would be required by each individual vessel if at anchor throughout the year, in the same manner as for the previous estimate, and adding thereto the additional quantity of fuel required for steaming a stipulated number of miles in excess of the quantity of fuel which the vessel would require if, instead of steaming the stated number of miles, the vessel had remained at anchor. The quantity of fuel required in excess of the corresponding port consumption for each mile of steaming was computed from reports now available showing the actual fuel consumption of each vessel and the number of miles of steaming by each vessel during the fiscal year 1924. Mr. FRENCH. Of course, that applies to vessels only in full active service. Admiral POTTER. Yes, sir; or those that have been in active service for a part of the year. Mr. FRENCH. So you computed it for that number? Mr. FRENCH. But you did not take into consideration the others. Admiral POTTER. That have no consumption; no, sir. I give in my statement two concrete examples in figures to show exactly what is meant by the statement that I just made. ALLOCATION OF ESTIMATE FOR 1926 Mr. FRENCH. Admiral Potter, you have handed to the comnittee a table showing the allocation of an estimate of $16,460,000 or fuel and transportation for 1926. Will you at this point insert the table? Admiral POTTER. Yes, sir. (The table referred to is as follows:) 1. The following estimate of funds required under the appropriation "Fuel and ransportation, 1926," based on references (a) and (b), is submitted: 17,120.63 tons coal, at $8.9579 648,927.57 barrels fuel oil, at $1.636- 20,058.35 barrels Diesel oil, at $2.0195. ,100,000 gallons gasoline, at $0.1893 Maintenance of fuel plants and fuel for yard craft. Leased fuel storages_ Vater-5,000,000 tons, at $0.5-- re-3,700 tons, at $12.50. Clectric current-14,800,000 kilowat hours at $0.023. dditional charges for transportation of oil. Miscellaneous... $2, 840, 734. 89 10, 877, 645. 50 242, 457. 84 397, 530.00 827, 170.00 28, 807.00 250, 000, 00 45, 510.00 340, 400.00 50,000.00 365, 825.00 193, 919. 77 16, 460, 000, 00 2. The above figures do not include fuel for naval vessels assigned to training Naval Reserves, as it is assumed that an allotment of funds for this purpose ill be available under the appropriation "Naval Reserve Force, 1926." 3. The estimates of quantities of coal, fuel oil, and Diesel oil which will be equired are based upon the fuel consumption per hour in port as shown on ships haracteristics cards and fuel consumption per mile steaming as determined from ctual performance of individual vessels during the fiscal year 1924. The numer of miles to be steamed by each vessel, used in this estimate, is the mileage pproved by the Chief of Naval Operations. 4. The price per ton for coal, the price of fuel oil per barrel, the price of Diesel I per barrel and the price of gasoline per gallon, are based upon the prices hich will actually be paid during the fiscal year 1925 under current contracts. 5. The estimate of the quantity of gasoline which will be required is based pon records of the quantity actually consumed and charged to the appropriaon "Fuel and transportation" during the fiscal year 1924. 6. For the maintenance of fuel plants, including fuel for small yard craft, not sted separately in the operating force plan for shore activities craft, it is estimated at the sum of $701,170 will be required. The cost of maintenance of reserve orages, completed at the Canal Zone and Pearl Harbor, and under construction Portsmouth, N. H., Boston, Mass., and Melville, R. I., which will be cometed by 1925, is estimated to be $126,000. 7. The estimates for rental of leased fuel storages is based upon continuation present contracts. 8. The estimates for water, ice, electric current and miscellaneous charges are ased on actual expenditures for these items during the fiscal year 1924. 9. It is estimated that 5,000 new gasoline drums will have to be purchased during e fiscal year 1926, as new equipment and in replacement of drums damaged in rvice. This estimate is based upon current requirements for drums and upon e fact that the use of sellers' drums has proved unsatisfactory to the Navy and - the companies, and it seems in the end more economical for the Navy to have ad use adequate drum equipment of its own. The price of $10 per drum is elieved to be a fair price for gasoline drums which it will be necessary to purchase aring the fiscal year 1926. |