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BEFORE THE

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COMMITTEE ON EXPENDITURES IN THE 47

EXECUTIVE DEPARTMENTS .
UNITED STATES SENATE

EIGHTIETH CONGRESS

FIRST SESSION

ON

Senate Document No. 7

A LETTER FROM THE COMPTROLLER GENERAL OF
THE UNITED STATES, TRANSMITTING A REPORT
RELATIVE TO THE CONSTRUCTION OF AN AQUEDUCT
NEAR SAN DIEGO, CALIF., UNDER A CONTRACT EXE-
CUTED BY THE NAVY DEPARTMENT WITH

THE CITY OF SAN DIEGO

FEBRUARY 25 AND 27, 1947

Printed for the use of the
Committee on Expenditures in the Executive Departments

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GEORGE D. AIKEN, Vermont, Chairman HOMER FERGUSON, Michigan

JOHN L. MCCLELLAN, Arkansas BOURKE B. HICKENLOOPER, Iowa JAMES 0. EASTLAND, Mississippi JOHN W. BRICKER, Ohio

CLYDE R. HOEY, North Carolina
EDWARD J. THYE, Minnesota

GLEN H. TAYLOR, Idaho
JOSEPH R. MCCARTHY, Wisconsin A. WILLIS ROBERTSON, Virginia
IRVING M. IVES, New York

HERBERT R. O'CONOR, Maryland
J. H. MACOMBER, Jr., Clerk

II

47-46250

S2345

1947

/ 155

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Statements by-

Page.

Casey, Ralph E., principal attorney, General Accounting Office,

Washington, D. C..

153

Downey, Hon. Sheridan, United States Senator from California -

Fisher, Edwin L., assistant general counsel, General Accounting Office,

Washington, D. C...

153

Fletcher, Hon. Charles K., Representative in Congress from Cali-

fornia

43

Heilbron, Fred A., chairman, San Diego County Water Authority,

San Diego, Calif.

219

Hill, James T., Jr., general counsel, Navy Department, Washington,

D. C.-

129, 197

Kenney, Hon. W. John, Assistant Secretary of the Navy, Washington,
D. Ć

129, 149
Knowland, Hon. William F., United States Senator from California - 40
Knox, Hon. Harley E., mayor of the city of San Diego, Calif.

97

Manning, Rear Adm. J. J., Chief, Bureau of Yards and Docks, Navy

Department, Washington, DC

129

Warne, Hon. William Ē., Assistant Commissioner, Bureau of Rec-

lamation, Department of the Interior, Washington, D. C.

44

Weinberg, Edward, attorney, Bureau of Reclamation, Department

of the Interior, Washington, D. C....

231

Willis, Purl, San Diego, Calif..

230

Exhibits:

Comptroller General, letter to Secretary of the Navy, re authority

for aqueduct project..

10

Comptroller General, memorandum on two similar contracts.-

2

Comptroller General, report of, on aqueduct near San Diego, Califor-

nia (S. Doc. No. 7)

1

Expenditures, Senate Committee on, analysis of contentions of Navy
Department and the Comptroller General.. -

182

Expenditures, Senate Committee on, letter of chairman to Secretary

of the Navy on Navy position --

8

Interdepartmental Committee, report of, on aqueduct project--

11

Interior Department, letter of Acting Secretary to San Diego County

Water Authority re Interdepartmental Committee

19

Interior Department, letter of Secretary to the Fresident re Inter-

departmental Committee report---

Interior Department, memorandum on San Diego water requirement.. 84

Legislative Counsel, Memorandum on Comptroller General's Report 169

Naval Affairs, House Committee on, letter of chairman to Bureau

of Yards and Docks re projects approved.---

16

Naval Affairs, Senate Committee on, letter of chairman to Chief of

Bureau of Yards and Docks re projects approved.-

Naval Affairs, Senate Committee on, letter of chairman to Members

re Navy projects

165

Navy, Assistant Secretary of, letter to Senator George D. Aiken,

chairman, Senate Committee on Expenditures, re Navy position - 7
Navy, Secretary of, letter to chairman of Senate Committee on Naval
Affairs re contract with city of San Diego ----

18

Navy Department, Bureau of Yards and Docks, contract NOy-13300

with city of San Diego...

25

Navy Department, Bureau of Yards and Docks, description of aque-

duct project, No. 337-C..

16

Navy Department, factual background of aqueduct project.

80

86

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Exhibits—Continued

Page.
Navy Department, letter of acting general counsel to Senate Com-
mittee on Expenditures re facilities disposed of_

198
Navy Department, letter of Chief of Bureau of Yards and Docks to

chairman, Senate Committee on Expenditures, re administrative
costs of aqueduct project-

151

Navy Department, letter of Chief of Bureau of Yards and Docks to

chairman, Senate Committee on Expenditures, re two similar con-

tracts.

151

Roosevelt, Hon. Franklin D., President, letters to Assistant Com-

missioner, Bureau of Reclamation, re Interdepartmental Com-

mittee

77

Roosevelt, Hon. Franklin D., President, letter to Administrator,

Federal Works Agency, re report of Interdepartmental Committee 94
Roosevelt, Hon. Franklin D., President, letter to Phil D. Swing, San
Diego, Calif., re report of Interdepartmental Committee---

95
Roosevelt, Hon. Franklin D., President, letter to Secretary of the
Interior re report of Interdepartmental' Committee--

87

Roosevelt, Hon. Franklin D., President, letter to Secretary of War

re report of Interdepartmental Committee

78

Roosevelt, Hon. Franklin D., President, letters to Senator Sheridan

Downey re aqueduct project--

78, 94

Roosevelt, Hon. Franklin D., President, letter to Vice President
transmitting report of Interdepartmental Committee -

92
Roosevelt, Hon. Franklin D., President, letter to Walter Cooper, city

manager, San Diego, Calif., re report of Interdepartmental Com-
mittee-

95

San Diego, chart of annual precipitation.-

82

San Diego, chart of annual precipitation and storage curves.

83

San Diego, chart of population and water consumption.-

104

San Diego, chart of rainfall..

107

San Diego, chart of revenues and expenditures -

105

San Diego, chart of water supply—safe yield and deliveries -

103

San Diego, chart showing investment in utility plant.-

106

San Diego, data re reservoir storage 1944 and 1945-

22

San Diego, data re water delivered to city -

22

San Diego, data re water delivered to users -

23

San Diego, data on water used by Federal agencies and war industries. 24

San Diego, memorandum of J. F. DuPaúl, City attorney, re power of

city to enter into contract--

190

San Diego, memorandum on water department data-
San Diego, reports on reservoir storage -

85

85

AQUEDUCT NEAR SAN DIEGO, CALIF.

TUESDAY, FEBRUARY 25, 1947

UNITED STATES SENATE, COMMITTEE ON
EXPENDITURES IN THE EXECUTIVE DEPARTMENTS,

Washington, D.C. The committee met, pursuant to call, at 10 o'clock a. m., in room 357, Senate Office Building, Senator George D. Aiken (chairman) presiding

Present: Senators Aiken (chairman), Ferguson, Bricker, Thye, McCarthy, McClellan, Hoey, Taylor, Robertson, and O'Conor.

There were present before the committee: Hon. Sheridan Downey and Hon. William F. Knowland, United States Senators from the State of California; Hon. Charles K. Fletcher, a Representative in Congress from the Twenty-third California District; Rear Adm. J. J. Manning, United States Navy, Chief of the Bureau of Yards and Docks; Harley E. Knox, mayor of the city of San Diego, California ; Fred A. Heilbron, chairman, San Diego (Calif.) Water Authority.

The CHAIRMAN. The committee will come to order and we will proceed with the hearing.

I would first like to make this statement. Under the Reorganization Act, among the duties of the Committee on Expenditures in Executive Departments is this:

Such committee shall have the duty of

(a) Receiving and examining reports of the Comptroller, General of the United States, and of submitting such recommendations to the Senate as it deems necessary or desirable in connection with the subject matter of such report.

I want to say first that whenever the Comptroller General makes a report alleging wasteful or illegal expenditures on the part of any person or any department of Government, it is the duty of this committee to examine such report and to make a report and recommendation to the Senate as to what they find. The first report we have received this year from the Comptroller General, and the one under consideration this morning, is the report which was submitted January 27, 1947, and which indicates the reason why the contract in question and the expenditure of Federal funds are considered to be in violation of law. This relates to the contract between the Navy Department and the city of San Diego regarding the construction of an aqueduct for that city. We will have this report of the Comptroller General printed in the record. (The report from the Comptroller General follows:) [S. Doc. No. 7, 80th Cong., 1st sess.]

GENERAL ACCOUNTING OFFICE,

Washington 25, January 27, 1947. The PRESIDENT PRO TEMPORE OF THE SENATE.

MY DEAR MR. PRESIDENT: There is transmitted herewith, for the information of the Senate, a report relative to the construction of an aqueduct near San

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