but if it should, then I think somebody would say that it might have been a pretty good thing to have spent four or five hundred thousand dollars to ease up that condition, and get $180,000,000 worth of ships in and out of there without tying things up.

That is the thing in a nutshell. We will still keep building ships for the Navy, as long as the Navy will give us ships to build.

HISTORY OF BATH IRON WORKS

The reason for the shipyard being in what appears to you gentlemen to be a most undesirable location, where apparently you cannot get in and out unless you wait for high water, is the fact that it started in that region in 1607, and the labor market has been built up. In two or three instances we have three generations working in the shipyard. In one family, by the name of King, there are 23 of them. Only a few years ago the fourth generation went home because he got old and weak in the knees.

The industry has grown up. In the early days the vessels were small. It was not until just before the Civil War that ships more than 150 feet in length got up there. In the old days they waited. They had plenty of time. Sailing vessels would wait until they got a fair wind. They might wait for 3 or 4 days. They have always built good ships down there. You will have to take my word for it. I would say so anyway. But that is the true story of the thing.

FACILITIES FOR REPAIR

Senator OVERTON. In addition to the destroyers which you are constructing, how many destroyers can you repair there at a time? Mr. NEWELL. We have berthing and crane facilities for four of them.

Senator OVERTON. For repair purposes?

Mr. NEWELL. Yes.

Senator OVERTON. In addition to your construction work?

Mr. NEWELL. Yes; that is, including extra facilities now in process of being put in. They will be completed some time between June and July of this year.

Senator BROOKS. What type of ship do you anticipate will be brought in for repair?

Mr. NEWELL. It might be destroyers; it might be seaplane tenders; it might be mine sweepers. We have already gone on record, at the direct request of the commandant of the first naval district in Boston, as to whether we could and would make such repairs. Of course we can and we will. If the Navy gets into a jam and has to put some ships down there, we will just do it.

NUMBER OF DESTROYERS CONTRACTED TO BE BUILT AT BATH

Senator BYRNES. How many destroyers are now under construction-two?

Mr. NEWELL. There is one at the dock, and there are two that are about 60 percent completed. Two others are just starting. Two will be put down on the new ways in May.

Senator BYRNES. You now have

Mr. NEWELL. There are 26 in all.

Senator BYRNES. You now have 26 contracted for?

Mr. NEWELL. Yes. We have to grind them out, and get them done by the end of 1943 or the early part of 1944.

Senator BREWSTER. Practically one a month.

Mr. NEWELL. Yes.

Senator OVERTON. You will soon have all your ways full.

Mr. NEWELL. Yes. They are all full now, except the two new ones. They will not be available until May. We got the clear signal to go ahead with them only in January.

AMOUNT NECESSARY TO STRAIGHTEN OUT CONDITION AT MOUTH OF RIVER

Senator BYRNES. You say $150,000 would straighten out the condition at the mouth of the river?

Mr. NEWELL. I think so.

Senator BYRNES. How about the other place?

Mr. NEWELL. There are three other places, just about the same. There are four places in all.

Senator BYRNES. Are the other places just as bad as the one you described at the mouth of the river?

Mr. NEWELL. They are just as bad so far as their physical attributes go, but they are not as much of a hazard. We would like to get into the river

Senator BYRNES. You want to eliminate the curve?

Mr. NEWELL. Yes. At one time I got stuck at Rockland with a destroyer leader. We had gone over there to standardize on the navy mile at Rockland, but we based at Bath. There are several reasons for that. We are only about 50 miles off the trial course, and we do not have to berth the men. They go home every night. It is very advantageous to do it that way. We had planned to finish this work in Rockland and go back to Bath, in case there was any work to do. At Bath the fuel, water, and other facilities are handy. It enables us to keep down to a minimum the total elapsed time we have to tie the Navy up trying these ships with the trial board. They are going to be very busy. So we had planned to go back to Bath that night. It shut in very thick, and it was not advisable to leave Rockland. We could not see anything. We had a ship worth about $6,000,000, and 250 people aboard it. We had to get about 150 of those people ashore, and get them fixed up. We had no facilities for berthing them on the ship. We had not planned for it.

To make a long story short, we were there 4 days. Our water was getting low. Of course, we can get water from the water boat. Our fuel was getting low. The trial board was at Bath. Everybody was getting restless, and hating everybody else. We went out in the fog. We had to. We did it in the daytime. The tidal conditions happened to be pretty good. But if they had not been we would have gotten in there all right. Nevertheless, you are taking chances. Of course, every once in a while you have to take chances. It would be better if we could minimize the chances of putting a Navy ship in a bad place and perhaps bottling up some others.

Senator MCKELLAR. Mr. Newell, does not the issue boil itself down to this: You have a contract for 23 destroyers. It is hazardous and dangerous to bring those destroyers out, or in and out, if they have to

be tried out; and there is only one way to do. That is for the Government to put up the money to make a safe passage. Is not that the substance of it?

Mr. NEWELL. If the Government feels that it is for its best interests at a time like this to remove some of those possible hazards. I am not saying that I am not going to get those ships out.

Senator MCKELLAR. Under your contract where are you to deliver the vessels?

Mr. NEWELL. Boston Navy Yard.

IMPROVEMENTS WOULD MAKE AN ALL-WEATHER CHANNEL

Senator OVERTON. If we should make this appropriation, would it remove all the hazards?

Mr. NEWELL. Oh, yes.

Senator OVERTON. It would eliminate all of them?

Mr. NEWELL. It would fix the place up in very good shape. It would eliminate the maintenance of four buoys, and it would enable us to make the river passage more quickly.

Senator OVERTON. You would have an all-weather channel?

Mr. NEWELL. Oh, yes.

Senator ADAMS. I think we have the issue pretty well in mind.

Mr. NEWELL. We do not have to go over these shoal spots at low water. We can go to one side of them and we do. Otherwise we would hit rocks.

Senator BYRNES. You have a tide of from 8 to 10 feet?
Mr. NEWELL. That is correct.

MILITARY ESTABLISHMENT

STATEMENTS OF GEN. GEORGE C. MARSHALL, CHIEF OF STAFF, ACCOMPANIED BY MAJ. GEN. G. H. BRETT, AIR CORPS; COL. ALBERT E. BROWN, GENERAL STAFF; MAJ. GEN. E. B. GREGORY, QUARTERMASTER GENERAL; MAJ. GEN. C. M. WESSON, CHIEF OF ORDNANCE; BRIG. GEN. T. M. ROBINS; BRIG. GEN. DAVENPORT JOHNSON; LT. COL. R. W. CRAWFORD, GENERAL STAFF; LT. COL. W. A. WOOD, GENERAL STAFF; LT. COL. E. H. BROOKS, GENERAL STAFF; COL. F. W. BROWNE, FINANCE DEPARTMENT; COL. L. W. MILLER, AIR CORPS

Senator ADAMS. General Marshall, we are glad to see you again. What information do you have for us regarding why this appropriation should be lowered or increased?

General MARSHALL. I have no reductions to propose, Mr. Chairman.

TOTALS CARRIED IN HOUSE BILL

The funds allowed under the Fifth Supplemental National Defense Appropriation Act, fiscal year 1941, by the House of Representatives represent immediate requirements of the War Department to carry forward the expanded military program. The bill provides $1,684,940,000 in cash appropriations, and in addition $2,093,453,254 in contract authorizations, a total of $3,778,393,254.

303230-41-2

Of the $3,778,393,254 allowed, $195,171,456 cash is for the liquidation of prior fiscal year contract authorizations; $311,193,570 cash and $809,112,500 contract authorizations-a total of $1,120,306,070is contained in the fiscal year 1942 estimates.

AMOUNT OF CASH AND AUTHORIZATIONS IN 1942 ESTIMATES CONTAINED IN THIS BILL

Senator ADAMS. As I understand the purpose of that, General, you mean that in the Budget for the coming fiscal year this $1,120,000,000 is included; and what you are seeking today in this appropriation is to anticipate or to advance the availability of that money?

General MARSHALL. We are asking that the $311,193,570 cash be made available for immediate expenditure and that, in addition, $809,112,500 of the contract authorization requested in the fiscal year 1942 estimates be authorized for immediate obligation.

Senator ADAMS. So that we would have a right to expect-whether or not we would be disappointed-that when we reach the regular bill those items will not be in it?

General MARSHALL. Yes, sir; that is correct. In addition, $797,229,754 new contract authorization for which cash is now included in the fiscal year 1942 estimates is requested. This contract authorization is being advanced to permit the immediate obligation of funds now carried in the fiscal year 1942 estimates. This leaves a new request in this estimate of $1,285,574,974 cash and $487,111,000 contract authorization, a total new request of $1,772,685,974. The items will be explained in detail as the committee hears the appropriations involved. I will discuss first the principal items which have been advanced from the fiscal year 1942 estimates.

FUNDS FOR EXPEDITING PROCUREMENT OF DEFERRED ITEMS, MUNITIONS PROGRAM OF JUNE 30, 1940

You will recall that in response to the President's message of July 10, 1940, transmitting to you the War Department munitions program of June 30, 1940, the Congress passed the Second Supplemental National Defense Appropriation Act, 1941. This act provided funds for the procurement of critical and essential items of equipment for the ground forces, for airplanes and material for the air forces, for handling and storage of the equipment procured, and for the creation of facilities for the production of critical items of reserve stock. The total amount authorized by this program was $5,804,748,519. Of this amount, $3,911,995,417 was provided, and $1,892,753,102 was deferred for future financing. Of the latter sum, $1,577,832,190 is included in the President's Budget for fiscal year 1942, now awaiting action of the Congress.

Since the submission of the fiscal year 1942 estimates, further studies made of the procurement and production situation make it advisable to request that you now authorize the War Department to obligate certain of those funds. Provision for such obligation in the amount of $1,300,000,000 is provided in the bill. By granting authority for the early obligation of these funds you will assure the rapid, steady, and uninterrupted production of this equipment. As you know, speed is essential; and manufacturers must know the program so that they may plan ahead for meeting the program.

FUNDS FOR EXPEDITING PRODUCTION

The 1942 estimates, as approved for transmission to the Congress, included for "Expediting Production" $498,367,500 in cash appropriations and, in addition, $195,867,500 in contract authorizations, a total of $694,235,000.

As a result of a detailed restudy of requirements, the War Department has requested, and the House of Representatives has approved, $291,890,000 in cash and $576,396,000 in new contract authorization. Provision of these funds will change the amounts now contained in the President's Budget. The procurement program will be materially expedited by advancing the authority to place contracts. The Under Secretary of War will give additional explanation of this program, as desired.

FUNDS FOR PROCUREMENT OF MOTOR TRANSPORTATION

Included in fiscal year 1942 estimates is $101,595,929 for the procurement of 79,000 motor vehicles required for the 1,418,000-man army. This item is advanced from the fiscal year 1942 estimates to enable manufacturers, through the early letting of contracts, to maintain production at present schedules. It is believed that such procedure will result in more favorable prices.

The following major items are not included in the fiscal year 1942 estimates, but are new requests.

PROCUREMENT OF AIRPLANES

Developments in the present war definitely indicate the imperative need for additional production capacity of bombers of the larger sizes. In order to provide additional capacity, the War Department desires to place orders for the procurement of 3,600 bombers, 1,200 heavy and 2,400 medium; and provision is made for them in these estimates.

Senator MCKELLAR. How long will it take to get the heavy bombers? If this appropriation is granted, how long will it take to complete the heavy bombers?

General MARSHALL. We estimate about 16 months, and for the medium bombers about 14 to 16 months. Those are the first deliveries, and they will get up to full production in about 20 to 24 months.

In addition, the funds previously discussed for the procurement of deferred items of the munitions program include provision for 1,425 airplanes 1,150 bombers, medium, and 275 transport-deferred in the munitions program, fiscal year 1941, under the 18,000-airplane program.

MILITARY CONSTRUCTION FOR OUTLYING BASES

The President announced in his message to the Congress on September 3, 1940, the acquisition of the right to lease certain navaland air-base sites from the British Government. A board of military and naval officers was appointed to visit each of the eight islands involved and to submit recommendations for the development of these bases. The board submitted its report. Immediately after approval of the report by the President, the War and Navy Depart