COMPARATIVE QUALITY

Admiral SPEAR. If you pay the price; yes, sir. But I should like to emphasize also, in this particular case, the matter of quality. The quality of the Argentine pack is far, far ahead of anything that is produced in this country.

Senator GERRY. In order to produce it here, do the American backers have to change their plants?

Admiral SPEAR. I think not, sir.

Senator GERRY. They have all the equipment?
Admiral SPEAR. I think so, so far as I know.

Senator BURKE. But they get a better price for their meat in other forms in this country. That is the whole point. They can make more money by selling it for use in other forms. That is why they have to charge more if they put it up in response to this order because they can get a a better price for that quality of beef by using it in other forms.

Admiral SPEAR. It is very rarely that we ever buy an article of food that is produced abroad, except spices and things of that sort.

Senator BURKE. The change you suggest would merely leave some discretion in the Department?

BUY-AMERICAN ACT

Admiral SHEAR. As the original "Buy American" Act now does, sir. Senator BYRNES. It would leave you to operate under the "Buy

American" Act like other departments?

Admiral SPEAR. Exactly.

Senator BURKE. It seems to me like a sensible thing.

PURCHASE OF SUGAR

Admiral SPEAR. There is a sugar feature there which I should like to emphasize, also. I understand that all the Cuban sugar that comes in here, along with the Philippine, Hawaiian, Puerto Rican, and our domestic sugar, goes into one big vat or bulk. No refiner in America could give us a certificate that there was not some foreign sugar in any particular lot of sugar that we might buy. He would have to keep it all separate, and it would embarrass us greatly when we ordered our 7,000,000 pounds of sugar per annum, which is about our average purchase.

Senator BYRNES. Where do you buy your sugar now?

Admiral SPEAR. On the domestic market, but we do not know whether there is some Cuban raw sugar in it or not. It would put us in a very embarrassing position if we had to worry about the source of our sugar.

Senator HALE. You buy your sugar altogether from American concerns?

Admiral SPEAR. Oh, yes, sir.

Senator BYRNES. Admiral, are you interested in the next tiem, "Transportation of Dependents of Officers and Enlisted Men?

Admiral SPEAR. We have charge of that appropriation; but I should like to have Commander Broadbent speak for that, because it is primarily a personnel matter.

STATEMENT OF COMMANDER E. W. BROADBENT, UNITED STATES NAVY, BUREAU OF NAVIGATION

TRANSPORTATION OF DEPENDENTS OF OFFICERS AND ENLISTED MEN

Commander BROADBENT. Mr. Chairman, this project provides funds to purchase transportation for the dependents of officers and certain enlisted men who are making a permanent change of station.

Under the statutes passed in 1920 and 1922, the cost of such transportation is to be paid by the Government. This project pays for it. The Navy Department has little, if any, control over the total amount to be expended under this appropriation, other than by restricting the movements of officers and enlisted men. Therefore, such officers and enlisted men may transport their dependents and submit claims, and the claims become payable by the Government. If there is insufficient money in the project to pay those claims, then the Department has to ask for a deficiency appropriation.

SUPERVISION OVER EXPENDITURES

Senator BYRNES. What supervision is there over these expenditures? I mean, as to the character of the expenditures.

Commander BROADBENT. The ticket may be issued, or travel authorized, only on the presentation of orders from competent authority. Such orders authorize the furnishing of the transportation under regulations governing the travel, prepared and issued by the Navy Department.

Senator BYRNES. That is what I wanted to know. You have those regulations as to transportation of automobiles, and things of that kind?

Commander BROADBENT. That is not included in this appropriation, sir.

Admiral SPEAR. Automobiles are not transported anyway, sir. They were at one time, but they have been stricken out for some years. Senator BYRNES. Therefore, the travel must come within the regulations?

Commander BROADBENT. We may exceed the amount authorized for expenditure on proper approval, but of course we would like to have the travel within the authorized amount, or rather have the authorized amount cover the travel expected.

HOW AMOUNT NEEDED IS ESTIMATED

Senator BYRNES. How do you arrive at this amount? It is an estimate based upon the current year; is it not?

Commander BROADBENT. It is an estimate based upon actual figures. We know the number of officers and the number of enlisted men to be in the Navy during the year in question. I calculate the cost per officer and the cost per enlisted man for the last complete year. That is an actual cost figure. I multiply the number of officers and the number of men for the coming year by that actual cost, and so arrive at the total.

Senator BYRNES. For instance, when the fleet came to the Atlantic coast, was there a travel allowance for dependents to come from the Pacific coast to the Atlantic coast?

Commander Broadbent. No, sir.

Admiral SPEAR. It is only on permanent change of station. Commander BROADBENT. It is only when the officer or man makes a permanent change of station. It is authorized by law; and to cut it down would be to deprive him of something the law authorizes. Senator BYRNES. As I understand you, so far as the appropriation is concerned, you go ahead and incur a deficeincy on it, and it is simply a question of whether we shall appropriate the money here or appropriate it in a deficiency bill?

Commander BROADBENT. Doing that, sir, has this disadvantage: As has happened before, it requires that the officers and men concerned shall defray the expense from their personal funds, and wait perhaps 5 or 6 months for a deficiency appropriation to be passed; and that is a considerable hardship.

AMOUNT IN BILL 25 PERCENT BELOW PROBABLE NEED

I might add that the amount now appearing in the bill is approximately 25 percent below the amount which I calculate will be actually required for the coming year. It was cut in the Bureau of the Budget, and it has also been cut in the House.

Senator HALE. You are going to have a deficiency anyway? Commander BROADBENT. It would appear so, sir. We should like to keep it down as low as possible.

Senator BYRNES. All right, Commander Broadbent.

STATEMENT OF CAPT. F. A. DAUBIN, UNITED STATES NAVY,

RETIRED

RESERVE MATERIAL

Senator BYRNES. Captain Daubin, you are asking for an increase of the appropriation for reserve material over the amount allowed by the House.

Captain DAUBIN. Yes, sir.

Senator BYRNES. What is the justification for the request?

BUDGET ESTIMATE

Captain DAUBIN. The Budget included a project for $3,545,000 as a part of a 6-year program to procure a war reserve of items of material under the cognizance of the Bureaus of Construction and Repair, Engineering, Supplies and Accounts, Medicine and Survery, and the Marine Corps. These items cannot be obtained readily from industry. In the case of a national emergency these items are needed immediately to recommission the naval vessels out of commission, to convert merchant vessels into naval auxiliaries, and to provide uniforms and equipment for the increased naval and marine corps personnel. The nature of these items and details concerning them was explained in confidential hearings.

AMOUNT ALLOWED BY HOUSE

The bill allows but $750,374. Funds are not allowed for Engineering and for Supplies and Accounts items. The funds requested for Construction and Repair and for Marine Corps items have been greatly reduced.

AMOUNT REQUESTED FOR BUREAUS OF ENGINEERING AND CONSTRUCTION AND REPAIR

One million dollars was requested for the Bureau of Engineering, and $1,000,000 was requested for the Bureau of Construction and Repair. The bill eliminated the entire million for Engineering, and allows Construction and Repair only $520,000.

These Bureaus have been greatly concerned on account of the lack of materials to commission the vessels out of commission. In the event of an emergency, the naval vessels now out of commission must be commissioned within a short period of time. Several hundred merchant vessels must be equipped and converted into naval auxiliaries within the first weeks of an emergency, and within the first few months several hundred more merchant vessels must be made ready for use with the Navy. Current funds do not permit the purchase of materials for these vessels. This program, so vital to the Navy in an emergency, cannot be accomplished unless the material is in reserve, as it takes from 3 to 6 months for industry to produce these items.

As an illustration, 25 of the destroyers now out of commission have 25-kilowatt generators that are dangerous to use. They are apt to blow up. When these destroyers were in service, numerous casualties occurred. Before these 25 destroyers can be recommissioned, these electric generators must be renewed.

The bill eliminated all the Bureau of Engineering material and all the Bureau of Construction and Repair material for recommissioning naval vessels and for converting merchant vessels for use as naval

auxiliaries.

RESTORATIONS REQUESTED

It is requested that the $1,000,000 for Bureau of Engineering and $480,000 for Bureau of Construction and Repair be restored to the bill. The specific items of material are listed in the confidential hearings, or I can enumerate them now.

AMOUNT REQUESTED FOR BUREAU OF SUPPLIES AND ACCOUNTS

One million dollars was requested for the Bureau of Supplies and Accounts in order to carry a reserve of woolen cloth for the manufacture of uniforms for the increased personnel occasioned by an emergency. The bill eliminated the entire amount.

NEED FOR RESERVE OF WOOLEN CLOTH

Unless a reserve of woolen cloth is carried, the Navy will have to go into the market and purchase whatever is available. This will be unsatisfactory, as proven by the experiences of the World War. Cloth of inferior quality, which shrank excessively, and of various shades of blue was the result.

Since woolen cloth will keep for a period of at least 20 years under proper storage conditions, and its availability in time of emergency would expedite prompt and effective outfitting of personnel, it is strongly urged that funds for the reserve stock be made available, in view of the situation existing with respect to the clothing and small

In the event blue woolen cloth were not held in reserve for manufacture of garments in an emergency the outfitting of personnel would be seriously handicapped and delayed, since considerable length of time would elapse before the material could be procured. Past experience has proven ven that contracts awarded for cloth for manufacture of blue woolen garments average approximately 5 months between date of contract and first delivery; approximately 1 year between date of contract and final delivery. In some instances, completion of contract has been delayed as long as 20 months to 2 years.

RESTORATION REQUESTED

It is requested that the $1,000,000 requested for the Bureau of Supplies and Accounts be restored to the bill.

AMOUNT REQUESTED FOR MARINE CORPS

Five hundred thousand dollars was requested for the Marine Corps. The bill eliminates $295,900 designed to purchase a reserve stock of cloth for Marine Corps uniforms.

The statements made in regard to necessity for having a reserve of woolen cloth for the Navy apply equally to the Marine Corps. In case of mobilization, first requirements are uniforms. The stock of uniforms on hand in the Marine Corps is barely sufficient for current needs. To purchase material for the manufacture of uniforms after mobilization is declared would entail a serious delay. It is vitally necessary that the Marine Corps have on hand, at declaration of mobilization, uniforms to clothe 20,000 men. The amount of $295,900 will provide uniforms for only approximately 2,529 men.

RESTORATION REQUESTED

It is requested that the $295,900 for the Marine Corps be restored to the bill.

SUMMARY

The vessels now out of commission have been kept to augment the fleet in war time. One of the purposes of the merchant marine is to aid the national defense by providing naval auxiliaries. Present current appropriations do not permit an accumulation of a stock of material to utilize the services of these vessels at the times planned. Unless a reserve stock is built up and maintained, endless delays and disruption of orderly mobilization will result, as it requires from 3 months to a year to obtain these materials from industry.

It is urgently recommended that the amounts requested in the Budget for Reserve Material, Navy be allowed.