DEPARTMENT OF THE ARMY HEARINGS BEFORE THE Сорг SUBCOMMITTEE OF THE EIGHTY-FIRST CONGRESS FIRST SESSION ON THE CIVIL FUNCTIONS, DEPARTMENT OF THE ARMY Printed for the use of the Committee on Appropriations 232 DEPARTMENT OF THE ARMY APPROPRIATION BILL FOR 1950 HEARINGS BEFORE THE 3. Congries. SUBCOMMITTEE OF THE EIGHTY-FIRST CONGRESS FIRST SESSION ON THE CIVIL FUNCTIONS, DEPARTMENT OF THE ARMY 87040 Printed for the use of the Committee on Appropriations ROBERT P. WILLIAMS, Administrative Assistant, Editor UNITED STATES WASHINGTON: 1949 UA24 1950 COMMITTEE ON APPROPRIATIONS CLARENCE CANNON, Missouri, Chairman JOHN H. KERR, North Carolina ANTONIO M. FERNANDEZ, New Mexico E. H. HEDRICK, West Virginia PRINCE H. PRESTON, JR., Georgia OTTO E. PASSMAN, Louisiana LOUIS C. RABAUT, Michigan DANIEL J. FLOOD, Pennsylvania CHRISTOPHER C. MCGRATH, New York SIDNEY R. YATES, Illinois FOSTER FURCOLO, Massachusetts EDWARD H. KRUSE, JR., Indiana JOHN TABER, New York RICHARD B. WIGGLESWORTH, Massachusetts CHARLES A. PLUMLEY, Vermont ALBERT J. ENGEL, Michigan KARL STEFAN, Nebraska FRANCIS CASE, South Dakota H. CARL ANDERSEN, Minnesota JOHN PHILLIPS, California ERRETT P. SCRIVNER, Kansas FREDERIC R. COUDERT, JR., New York GEORGE Y. HARVEY, Clerk SUBCOMMITTEE ON DEFICIENCIES AND ARMY CIVIL FUNCTIONS JOHN H. KERR, North Carolina, Chairman JOHN TABER, New York CLARENCE CANNON, Missouri LOUIS C. RABAUT, Michigan RICHARD B. WIGGLESWORTH, Massachusetts CORHAL D. ORESCAN, Executive Secretary to Subcommittee II CIVIL FUNCTIONS, DEPARTMENT OF THE ARMY APPROPRIATION BILL FOR 1950 HEARINGS CONDUCTED BY THE SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, IN CHARGE OF THE DEPARTMENT OF THE ARMY CIVIL FUNCTIONS APPROPRIATIONS BILL FOR THE FISCAL YEAR 1950, ON THE DAYS FOLLOWING, NAMELY: THURSDAY, FEBRUARY 17, 1949. THE PANAMA CANAL STATEMENTS OF BRIG. GEN. F. K. NEWCOMER, GOVERNOR OF THE PANAMA CANAL AND PRESIDENT, PANAMA RAILROAD COMPANY; B. F. BURDICK, CHIEF OF OFFICE; L. B. MAGNUSON, BUDGET ACCOUNTANT; WARREN PITMAN, ASSISTANT RAILROAD ACCOUNTANT; AND R. E. RAMSEY, ASSISTANT CHIEF OF OFFICE Mr. KERR. General you are here before us, I believe, to justify your request for appropriations pertaining to the Panama Canal. General NEWCOMER. Yes, sir. Mr. KERR. We will be delighted to hear from you, sir. GENERAL STATEMENT General NEWCOMER. The Panama Canal is essentially an international public utility, which aims at recovering all costs, including 3-percent interest on the net capital investment. A number of the activities of the Panama Canal are operated on an entirely selfsustaining basis and produce net profits which are annually covered into the Treasury. However, since tolls levied against vessels transiting the Canal represent the principal item of revenue, and as these receipts are deposited in the Treasury, it follows that appropriations are required to cover the net expense of producing tolls revenues, capital improvements and betterments, sanitation, and civil government. The estimates for the fiscal year 1950 have been prepared on the basis of operating and maintaining the Canal at a high level of efficiency to meet the demands for services required by interests using the Canal and its adjuncts, On this basis the estimates envisage an operating work load at approximately the current level of activity and at present costs of labor and commodities. The total amount appropriated for 1949 was $20,797,813, which, together with $7,456,882 carried forward from prior year appropriations, will make a total of $28,254,695 available for obligation in 1949. The appropriation request for 1950 1 |