Mr. TABER. How do you arrive at this estimate for miscellaneous supplies and expenses?

General WILLIAMS. The item of miscellaneous supplies and expenses is on the per capita basis. It is based on our experience of the per capita cost.

Mr. TABER. You say it is on the per capita basis?

General WILLIAMS. Yes, sir; we are using the same per capita cost that we have found necessary from our experience.

Mr. TABER. Your item of miscellaneous supplies and expenses ought to be on the basis of an average of 67,000 men, instead of an average of 75,000. The whole set-up here should be on the basis of the average. General WILLIAMS. For instance, if we enlist a man in January and pay his way down to the station, clothe him, and then move him out, we will be paying freight, and we will be buying the equipment to handle 75,000 men. We must pay the freight and express for that number.

Mr. TABER. You do not have the salaries-and-wages cost that goes along with it. You do not have the stationery-and-office-supplies expense for that average. You should have a different average here.

General WILLIAMS. If we have 75,000 men at the end of the year, we will have to buy office equipment for 75,000 men before the end of the year.

Mr. TABER. But not stationery or supplies. How much cut could you take on that?

The

General WILLIAMS. Not a dollar cut could we take there. Budget Bureau cut us $1,000,000. Our estimates were cut that much to round them out. I rounded out the estimates to even thousand dollars, and they rounded some out to even million dollars. They took out $360,000 on the clothing item just to round it out.

Mr. TABER. You could take the item of salaries and wages, and take out quite a considerable sum.

General WILLIAMS. I think salaries and wages are running at this rate right now.

Mr. TABER. At what rate are you running now for July?

General WILLIAMS. At the rate of $2,250,000 a year on the 1st of July.

Mr. TABER. Your freight and express are away up. I cannot see why you cannot take a cut on that.

General WILLIAMS. We feel that with the great number of troops and equipment moving that we will need all of the estimates.

Mr. WOODRUM. If there is nothing further, we thank you for your statements.

WEDNESDAY, JULY 16, 1941.

NAVAL EMERGENCY FUND

STATEMENT OF LT. COMDR. C. L. C. ATKESON, UNITED STATES NAVY

Mr. WOODRUM. For the Naval Emergency Fund, you are requesting $5,000,000.

Lieutenant Commander ATKESON. We are requesting $5,000,000 at this time for local and passive defense installations and the rental, acquisition, and construction of section bases. The construction of section bases is the primary purpose of the $5,000,000, although under the language is included other passive defense emergency items. To summarize the history of this, the authorization bill for $50,000,000 was approved June 24, 1941, and $10,000,000 was appropriated under title VI of the Appropriation Act, 1941, approved March 17, 1941, and $5,000,000 was appropriated in the Deficiency Act approved July 3, 1941. Now we are requesting $5,000,000 more. We have justifications for this.

Mr. TABER. Do you have a break-down of it?

Lieutenant Commander ATKESON. Yes, sir. You will find that in the justifications but it should not be printed. The vessels based at the section bases range from private yachts converted for Navy use to small destroyers, and they are used in coastal and harbor patrol, minesweeping, submarine detection and attack, coastal convoy, and net tending.

WEDNESDAY, JULY 16, 1941.

HYDROGRAPHIC OFFICE

STATEMENT OF CAPT. G. S. BRYAN, HYDROGRAPHER

CONTINGENT AND MISCELLANEOUS EXPENSES

Mr. WOODRUM. We have before us an item in House Document No. 310 for, Contingent and miscellaneous expenses, Hydrographic Office, $190,000.

Captain BRYAN. Our appropriation for 1942 is $107,000, which is the regular Budget figure. During 1941 we spent a total of $480,000. We are asking, in addition to the $107,000, for $190,000 under title III. That includes the various items here which are due primarily to the great increase in our output. We are currently producing now about five times as many charts as we normally do.

Mr. TABER. This will give you quite a lot more money for chart paper and for operating expenses than you had last year?

Captain BRYAN. No, sir. Last year we used $480,000 and the total of our regular appropriation and this title III is $297,000 for this

year.

Mr. TABER. Almost half of that was for new equipment.

Captain BRYAN. Yes, sir.

Mr. TABER. All of half, and now, at this time, with that out, you are still going up to pretty near the same figure; you get up to $300,000 now with that situation in. You have a great big jump here in your repairs and alterations, and a terrific jump in chart paper. Now, why do you have such a big increase?

Captain BRYAN. Well, we have to turn out five times as many charts.

Mr. TABER. In your regular appropriation, you were only asking for $107,000; now you are coming back and asking for $190,000.

Captain BRYAN. We were limited to that figure in our normal appropriation. I would have asked for a lot more at that time, but the instructions were to limit it to the regular Budget appropriation, which has been $107,000. That is the normal appropriation when we turn out in the neighborhood of 450,000 charts a year, and now we are turning out 2,300,000.

Mr. THOMAS. How much increase of personnel do you have when you jump from 450,000 charts to 2,000,000 charts? What is your inerease in personnel?

Captain BRYAN. From about 200 to 383, I think it is.

Mr. THOMAS. You went from 200 to 383?

Captain BRYAN. Yes, sir. The biggest item here, of course, is chart paper.

Mr. THOMAS. What about this alteration item, $40,000? Is that for your new cabinets, or what?

Captain BRYAN. The $40,000 is for the moving of the office over to the new building.

Mr. THOMAS. That is not going to take $40,000, is it, to get you moved?

Captain BRYAN. I think it is going to take more than that. That is the best estimate we could get, and I had people from the Budget come

over

Mr. THOMAS. You do not mean just to move; you mean for equipment, too, don't you?

Captain BRYAN. No, sir; just for moving. We have a lot of printing presses and a lot of machinery that has to be moved; we have a tremendous number of charts, and all of our equipment; chart shelving has to be put up.

Mr. THOMAS. Who did you figure with on this moving? Do you get competitive bids locally, or do you go all over the country to get bids? Captain BRYAN. It will be all over the country; anybody who wants to bid on it.

Mr. THOMAS. And the lowest bid you have gotten is $40,000? Captain BRYAN. The best estimate; yes, sir. I think we will be lucky if we can get it done for that.

Mr. DITTER. Do I understand you to say, Captain, the Bureau of the Budget reduced your chart-paper request prior to the consideration of the 1942 appropriation? That was the statement made by you before? Captain BRYAN. Yes, sir. I think we asked

Mr. DITTER. You said you asked for more and you were told and I assume you were told by the Budget-that items of that kind had to be reduced. Is that right?

Captain BRYAN. Yes, sir.

Mr. DITTER. What do you suppose was the purpose of that instruction-to sort of level off this thing and make it more palatable?

Captain BRYAN. No, sir; I think they were simply tryingMr. DITTER. They did not really think you could get by with this reduced amount, did they?

Captain BRYAN. I could not answer for them on that. I think they were conscientious about it.

Mr. DITTER. What additional justification did you present to the Budget Bureau at this time, that you failed to present prior, which was a persuasive factor now with them, but which was not persuasive in times past?

Captain BRYAN. I pointed out the fact that my previous estimates had been exceeded by the actual figures and they were conservative estimates.

For instance, on the third page here, 1941; at the time we made this up, we estimated 906,000 charts would be issued. Instead of that, there were 1,204,000. In every case there, our estimates were less than what we actually used.

Mr. DITTER. You had those same figures before you when you ap-. peared before the Budget before, though, did you not?

Captain BRYAN. I did not have those; no, sir.

Mr. DITTER. But you had a general idea of the increase in work which you had been doing?

Captain BRYAN. Yes, sir.

Mr. DITTER. You might not have had it down to the last chart, but you had it in a general way.

Captain BRYAN. I made the best estimate that I could, and they did not see exactly eye to eye with me on it.

Mr. DITTER. I see.

Mr. WOODRUM. All right, Captain, I think that covers all your items.

MONDAY, JULY 14, 1941.

BUREAU OF YARDS AND DOCKS, MAINTENANCE STATEMENTS OF REAR ADMIRAL BEN MOREELL, CHIEF, BUREAU OF YARDS AND DOCKS, REAR ADMIRAL R. T. McINTIRE, (M. C.) UNITED STATES NAVY, BRIG. GEN. SETH WILLIAMS, MARINE CORPS; CAPT. J. C. BYRNES, UNITED STATES NAVY; CAPT. H. H. GOOD, UNITED STATES NAVY; L. H. SINCLAIR, L. A. MORRISON, REAR ADMIRAL RUSSELL WILLSON, SUPERINTENDENT, NAVAL ACADEMY

GENERAL STATEMENT

Mr. WOODRUM. Admiral Moreell, do you have a general statement you wish to make covering the items for "Maintenance, Bureau of Yards and Docks?"

Admiral MOREELL. Yes, sir.

The rapidly expanding Naval Shore Establishment, the establishment of new bases and miscellaneous activities, the expansion of naval district headquarters, and the establishment of numerous offices throughout the naval districts, the steps being taken to expedite shipbuilding and completion of shipbuilding facilities, the 6-day workweek, three shifts per day for certain trades and activities, are seriously increasing the demands for allocations of funds properly chargeable to appropriation, "Maintenance, Bureau of Yards and Docks." The personnel forces including artisans, administrative, technical and supervisory employees being augmented daily, and the number of artisans are being increased at the various navy yards as rapidly as men can be employed. At many of the yards the increases up to the present time have been from 300 to 500 percent. From a workweek of one shift of 5 days, the yards have gone to three shifts of 6 days, and in some trades 7 days per week. Every building, service, utility, and piece of equipment in the navy yards is being used at least three times as much as formerly. The expenses for cleaning, operation, upkeep, maintenance and repairs have necessarily increased in practically the same ratio.

The 6-day week has resulted in an increase of approximately 20 percent in the Public Works clerical force; the great volume of work has further increased the clerical load in the shops, power plants, and all administrative work. The 6-day week has also increased the salaries paid to technical employees and inspectors by 30 percent.

Very large purchases of furniture have been and will be necessary to accommodate the additional employees in every department and office. Additional lighting has been necessary in many buildings because of additional employees and night work. Additional telephones have been installed to the capacities of the exchanges, and many lines have three or more extensions. Traffic through the switchboards, where manually operated, are resulting in considerable expenditures for augmented telephone lines and operators. Cest of emergency repairs to plumbing, heating systems, lighting and power systems, and structures, have multiplied several times. The heavy use has accelerated deterioration and break-down; repairs must be