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articles in store. In spite of these efforts, it has been impossible to make all required shipments with the funds available.

Realizing the gravity of the existing situation, the Secretary of the Navy has directed the Bureau of Supplies and Accounts "to provide in appropriation Maintenance, S. and A.,' sufficient funds to keep pace with the growing Navy."

The appropriation "Maintenance, Bureau of Supplies and Accounts," provides the funds for the field activities which enable the Bureau to perform its functions, as outlined in my opening state

ment.

The projects and purposes for which expenditures are made under this appropriation are:

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The necessity for these increases is due to two factors, namely: (a) The increased demands of the Navy for the services chargeable to this appropriation, as reflected in increases of officers and men, tonnage of vessels in commission and aircraft in service, volume of stores handled and civil employees at shore stations; (b) the necessity for additional funds to bring the activities under this appropriation into step with the activities of the Navy as a whole. It is requested that this be accomplished by making $500,000, representing these "nonrecurring" items, available immediately.

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CLASSIFIED LABOR. GROUP IV-B EMPLOYEES

Admiral CONARD. Project 1, classified labor. Taking up the first tem, $221,760, the increase for classified employees is needed on acount of five factors, as shown on pages M-36 to M-41 of the justifica

ion:

hange in policy in air stations and submarine bases outside the continental United States to man 7 key positions with United States citizens (p. M-38)--.

Opening naval air station, Alameda, Calif., 10 positions (p. M-38). Opening naval torpedo factory, Alexandria, Va., 4 positions (p. M-38) _ncreases work at navy yards and air stations, due to increases in size of ships, 51 positions (p. M−39)_.

Accumulation of annual leave due to the demands for services which have prevented greatly leave as it accrues-services of temporary employees (p. M-40).

Total.

$13, 800

19, 360 7, 200

81, 400

100, 000 221, 760

AIR STATIONS AND SUBMARINE STATIONS OUTSIDE CONTINENTAL UNITED STATES

Admiral CONARD. Taking up the first factor, change in policy in air stations and submarine bases outside the continental United States to man key positions with United States citizens, the seven key positions are for the fleet, air, and submarine bases at Coco Solo, C. Z., and Pearl Harbor, Territory of Hawaii. Some years ago the Department directed that key positions ashore at these activities be filled by enlisted men. Because of frequent changes of personnel they proved unsatisfactory. The Department has now authorized this work to be done by American citizens.

Mr. UMSTEAD. What is the line of work which they do, Admiral? Admiral CONARD. Supply, accounting, and disbursing activities at these two stations, Coco Solo and Pearl Harbor.

Mr. UMSTEAD. What compensation do you propose to pay these seven men?

Admiral CONARD. At the fleet air base, Coco Solo, 2 CAF grade 5 employees at $2,000, or a total of $4,000, and at the fleet air base, Pearl Harbor, two of the same rating, the same amount, $4,000, and at the submarine base, Coco Solo, there are two of the same type, the same amount, and one CAF-4 at $1,800, making a total in all of $13,800.

Mr. UMSTEAD. As I understand it, this work is now being done by enlisted men?

Admiral CONARD. I am not sure whether enlisted men are still there I think the work is still awaiting the appointment of these additional people.

Mr. UMSTEAD. If it is important work it is being done by someone? Admiral CONARD. It is not being done satisfactorily.

Captain WATROUS. It is being done in part by the enlisted personnel.

Commander HULLFISH. We have some positions filled now by American citizens, but we need seven more, in order to fill all of The necessary positions.

36929-38- -19

NAVAL AIR STATION, ALAMEDA, AND NAVAL AIR STATION, ALEXANDRIA

Admiral CONARD. The next factors are opening naval air station. Alameda, Calif., 10 positions, and opening naval torpedo factory. Alexandria, Va., 4 positions.

The 14 positions for the air station, Alameda, Calif., and the torpedo station, Alexandria, Va., are necessary if these stations are to be opened. The initial appointments at Alameda will be of personnel capable of supervisory work as the station expands, requir ing higher average pay.

Mr. UMSTEAD. What compensation do you propose to pay to the personnel intended for Alameda?

Admiral CONARD. At Alameda in the office of the supply depart ment to be four employees, one getting $2,300, one getting $2,000 and two getting $1.800 each. In the storehouse office there are to b two, one getting $2,300 and one getting $1,620. In the accounting department there is to be one getting $2,300 and one getting $1,62 and in the disbursing office there is to be one at $2,000 and one at $1,620, making a total of $19,360.

Mr. UMSTEAD. That would be a partial force only?
Admiral CONARD. Yes, sir.

Mr. UMSTEAD. I believe it is a fact, is it not, that the Navy ha not, up until this time, done any work at Alameda looking towar the construction of the shore station?

Admiral CONARD. It has just recently acquired the rights to o cupy the area.

Mr. UMSTEAD. That is correct, and they have between now and t end of the fiscal year 1938. It will be possible to do but little of th actual work?

Admiral CONARD. That is correct.

Mr. UMSTEAD. In the fiscal year 1939 about all that the Depar ment can do at Alameda is to begin the construction of the Si station there?

Admiral CONARD. Well, I am not familiar with the exact plans. do not know how far they will go, but we have gone over the situ tion and found that it will probably be necessary to have these peop on the ground.

Mr. UMSTEAD. That it probably will be necessary?

Admiral CONARD. Yes.

Mr. UMSTEAD. Well, have you any reason to believe that all them will be necessary; quite positively?

Admiral CONARD. Not positively, but we think they should be pr vided for, and we expect to get them there so that the work can undertaken.

Admiral KIMMEL. The best answer to that, I think, is that acc r ing to the plans that have been submitted to your committee we e pect by the end of 1939 to expend about $3,000,000 out there.

Mr. UMSTEAD. Well, that work, Admiral, will be under the trol of the Bureau of Yards and Docks.

Admiral KIMMEL. Yes, sir.

Mr. UMSTEAD. And so far as the construction is concerned, all the employees incident to the construction will be furnished by t Bureau of Yards and Docks out of the appropriation made for t purpose of constructing this station there.

Admiral KIMMEL. I am merely trying to indicate the extent of the work that would be undertaken, that we plan to undertake.

Mr. UMSTEAD. If all of the construction cost must come out of the ppropriation of the the Bureau of Yards and Docks, then I am aving difficulty in understanding why, when that work is merely beginning, the Bureau of Supplies and Accounts will need 10 men here as indicated by their request in this appropriation. Can you elp me any with that?

Admiral KIMMEL. It is more than merely beginning, Mr. Chairnan, I think. If they are to spend a million dollars and they are to make contracts this spring or this winter, as soon as they begin, y September of next year, perhaps, they will need some accounting eople there. They will have some activities there probably all of he time.

Mr. UMSTEAD. Do you mean by letting contracts that the Navy Department will let such contracts to private contractors as may be ecessary to carry on the work?

Admiral KIMMEL. Yes; we will have done something, I hope, and then we will put some kind of a naval activity there.

Mr. UMSTEAD. Of course, the first 12 or 15 months will be consumed practically in filling the submerged areas.

Admiral KIMMEL. That is true.

Mr. UMSTEAD. That will be done by contract?

Admiral KIMMEL. On the abandoned field part we will have some kind of a naval unit established while they are making land out of water over there on the Alameda side.

Mr. UMSTEAD. Of course, you would have a considerable unit if you have 10 employees of the Bureau of Supplies and Accounts out there at one time. That would be a pretty good start.

Captain WATROUS. During the period this construction work is going on, the Bureau of Yards and Docks employees must be paid, and the accounting work continued from its inception.

Mr. UMSTEAD. Admiral, you stated a moment ago that you need four employees at the naval torpedo factory, Alexandria, for expanding the activities of which funds are requested in this budget? Admiral CONARD. That is right.

Mr. UMSTEAD. Is that a partial force?

Admiral CONARD. That would be a start, yes; four employees at $1.800 each, $7,200.

INCREASED WORK AT NAVY YARDS AND AIR STATIONS

The fourth factor is increased work at navy yards and air statons, due to increase in the size of ships, 51 positions. The 51 additional positions were selected from the requests for 74 additional positions submitted by navy yards and stations to provide reased personnel for performing the increased work of the supply, accounting, and disbursing offices. The requests have been carefully considered and the increases are essential to the proper functioning of these activities. Would you like to have a list of those, Mr. Chairman?

Mr. UMSTEAD. Not for the printed record.

Admiral CONARD. They are all shown there.

Mr. UMSTEAD. How many positions did you ask the Budget for this purpose!

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