clarified for the record-where the instructions came from, exactly what we have in excess, I think that will make it a little easier for me to understand.

Colonel BETZ. Can we get copies of 67-11?

(Copies obtained.)

Mr. RIEHLMAN. I think we should go out and see what you actually have. We are being told two sides of the story. There is a conflicting view. We can see what they have and come back and clarify the testimony given previously. I don't want to confuse the issue, we want to clarify it. If we see what you have then we will be able to ask the questions.

Mr. HOLIFIELD. Let's go ahead and see the rest of the charts. Let's look at the rest of them.

CHELI AIR FORCE DEPOT EXHIBIT No. 11

Engine disposal program

Cheli disposes of aircraft engines only as directed by higher headquarters. Engines on hand as of Nov. 1, 1952.

Number shipped out Nov. 1, 1952, to Oct. 31, 1953.
Engines on hand as of Nov. 1, 1953_

Current shipping orders (not shipped)

CHELI AIR FORCE DEPOT EXHIBIT No. 12

0-170-3. 0-200-5

O-435-1.

Aircraft engines stored, by type and condition, Oct. 30, 1953

Type of engine

2,260

749

1, 511

109

R-670-5A.

R-680-11.

R-680-17.

R-985-ANI.

R-1830-75.

R-2800-57.

R-2800-59.

R-2800-71.
R-2800-73
R-2800-75.

R-2800-77-
R-2800-79.
R-2800-81.
R-3350-23A.

PT 13

PT 13D

AT 11, C 45.

B 24 N

P 47 M, N.

P 47 D

A 26.

P 47 M, N.

C 46 D, E.

P 47 N.

A 26.

V-1650-7.

V-1650-9.

V-1650-9A.

Total.

160

1

0000000002702

160

1

4

1

3

1

2

1

1

54

86

75

Mr. HORTON. (continuing the presentation). In the engine disposal program at Cheli we dispose of aircraft engines as directed by the prime depot. We have on hand 1,511 and shipped 749, primarily to San Bernardino. We have 109 current shipment orders.

Mr. HOLIFIELD. Is that for redistribution?

Colonel LEE. It is for reclamation. For the parts which they take off of engines and then dispose of the rest as scrap.

Mr. HOLIFIELD. It is a scrapping operation?

Colonel LEE. It is reclamation of parts. They will take off the parts they will need.

Mr. HORTON. This is a recap of the engines which we have on the base at the present (indicated on chart). The majority are R-3350 engines originally designed for the B-29.

Mr. HOLIFIELD. There are 869 engines which have been used and are repairable, and only part are serviceable?

Mr. BALWAN. Are all engines on the base for the excess program? Mr. HORTON. We cannot determine that. We ship them as requested by the prime depot.

Mr. HOLIFIELD. Are they all used engines?

Mr. HORTON. Yes, sir.

Mr. BALWAN. You have a report of the number of engines from the excess of Spring Clean study, located on the base?

Mr. PORTER. As far as I know, the project Spring Clean for engines is handled separately.

Colonel LEE. This particular property is special storage for the other depots. This may be included in their project Spring Clean.

Tons
Value

CHELI AIR FORCE DEPOT EXHIBIT No. 13

Class 27-Account code 7-property on hand as of Oct. 30, 1953

Source: 822d DSO account records.

3, 360

$5,791, 954. 69

Mr. HORTON. In this class 27 or account code 7, the value of the property on hand as of October 30, 1953, was $5,791,954.69.

Mr. HOLIFIELD. You arrived at that figure as a result of instructions from the prime base to declare these excess?

Mr. PORTER. Those figures were computed from the stock record account of the property.

Mr. HOLIFIELD. All of that material there has been transferred there as a result of directives from your prime base, from the authority above you?

Mr. BUTLER. Either from Air Force stock lists or from various lists from higher headquarters.

Mr. HORTON. The next chart summarizes the sales conducted the past year at Cheli. Spot-bid sales produced revenue of $60,000; $85,000 were realized from sealed bid sales; and $1,200 from retail sales. We would like to point out here since lumber became scarce we are reclaiming all scrap lumber on the base and no retail sales were made in October.

Mr. RIEHLMAN. Do retail sales consist of lumber?

Mr. HORTON. Yes; people came in and bought small items such as that. On allocations, this is primarily scrap metal which National Production Authority said to sell to this smelter or that one.

CHELI AIR FORCE DEPOT EXHIBIT NO. 15

Scrap and Waste Property Sold, Period Nov. 1, 1952-Oct. 31, 1953 Estimated acquisition cost..

Total revenue_

Source: Air Force disposable property report (AF 488).

$2, 147, 835. 16 $77, 548. 61

Mr. HORTON. The next chart summarizes the Air Force Disposable Property Report the past year at Cheli. In this category 75 percent of this material handled is obtained from within the area, from prime contractors, subcontractors, and the airplane industry. It is pulled in from other places. This is, for that reason, a very rough estimated acquisition cost of $2,100,000.

Mr. BALWAN. I would like to develop that later on in the afternoon session. The total revenue was from junk.

CHELI AIR FORCE DEPOT EXHIBIT No. 16

Salvage and usable property sold, period Nov. 1, 1952-Oct. 31, 1953

1 Includes $26,000 in vehicle transferred to CAP with $640 reinbursement. Source: Disposable property report.

Mr. HORTON. On this next chart, we have itemized, by report line the salvage and usable equipment which was sold. As we go through the list we notice the majority is in "All other". We have a listing which shows you a breakdown for this majority which is metal, structural steel, brass and sheeting, and so forth.

Mr. HOLIFIELD. You show your acquisition costs over $4 million and recovery $81,000. Does that include the cost of screening, personnel necessary to handle this?

Mr. HORTON. No sir. It is not a net recovery to the Government. Mr. HOLIFIELD. Then it might well be a complete loss to the Government.

Mr. HORTON. The salaries were about $8,000 for the year in sales. account benefits in addition to this. where Mr. Butler gets an additional goes back to stock.

roughly $72,000, so the profit was This however, does not take into There is a reclamation program return because of property which

Mr. HOLIFIELD. Let me understand this. In addition to this property which has been reduced to salvage or sold as usable property, you also have another value in your program in the shape of property which has been reclaimed or repaired for continued usage. Is that right?

Mr. BUTLER. Yes, sir.

Mr. HOLIFIELD. To what extent?

Mr. BUTLER. I have some figures here I did work up. The dollar value covering the past year amounted to $738,538 for material we've claimed through reclamation.

Mr. HOLIFIELD. Where is the cost of reclamation reflected?

Mr. BUTLER. The cost of personnel performing that has not been deducted. The figure is the total value of the material that has been reclaimed-total value.

Mr. HOLIFIELD. You have no cost figures as to how much it costs you to do that?

Mr. BUTLER. No, sir.

Mr. HOLIFIELD. If it was a motor overhauled you put the value of the motor after overhaul. This is a gross figure which does not reflect the net value to the Government, because your cost of reclamation is not subtracted from it.

Mr. BUTLER. As Mr. Horton said, a lot of the material is received from the outside, from contractors, and so forth, which is identified under various other stock numbers. It comes in and is screened and it might be good serviceable property. Then it is returned to Air Force stock.

Mr. HOLIFIELD. It isn't a matter of repairing or servicing; it is a matter of identifying, is that correct?

Mr. BUTLER. That is right, sir.

CHELI AIR FORCE DEPOT EXHIBIT No. 17

Depot stocks property processed as excess, period Nov. 1, 1952-Oct. 31, 1953

Mr. HORTON. Here we have the depot stock property processed as excess (indicated on the chart), which has been transferred from account code 1 or account code 7 to the disposal officer as surplus. For the year this had a valuation of $22 million; property in account code 7, listed on standard form 120 about 22 million.

Mr. BALWAN. You have no release for that?

Mr. HORTON. The part for which we have received no release is shown at the bottom of the chart, value of $1.8 million.

Next is the evaluation of the Q plan. As the Q plan has so recently been put in effect we do not feel qualified to give an evaluation, for the short period. The summary of what we think the plan will do and its benefits are indicated on the chart shown in the brochure.

CHELI AIR FORCE DEPOT EXHIBIT NO. 18

EVALUATION OF Q PLAN

1. Summary.-Excess property generated within the Air Force must be screened for possible utilization by other agencies within the Department of Defense and the Federal Government. The Department of Defense has devised a procedure by which all generated reportable material will be divided into two major categories, i. e., P and Q type properties. This procedure was placed into effect in order to economically expedite the screening of property of low value and low utilization potential and provide for selective screening of property of high value and high utilization potential. Q type property is defined as property having low value and/or low utilization potential. P type property is the property having high value and/or utilization potential. Property falling within General Services Administration common item commodity groups, with some exceptions, must be reported on standard form 120, Excess and Personal Property Report. Such property is broken down into P and Q type property prior to reporting. Q type property with a total line item dollar value of less than $100 regardless of condition may be transferred direct to disposal without reporting on standard form 120.