mission, Bureau of Valuation, convince us that this work can best be done by representatives of that Bureau And our previous experience

* *

assures us that this Bureau can do the work in a careful and expeditious manner."

In response to the Maritime Commission's call for a comprehensive survey of land and fixtures utilized by shipyards, the Commission has advised the Maritime Commission that 10 of our key men will be available for assignment to this work, pointing out, however, that "this does not mean that all will be available for any individual assignment. Our staff, as you understand, is very limited; and we have other pressing war assignments for the Navy, Army, Department of Justice, et al. Therefore, our staff has to be held in a flexible state to meet emergency calls."

Other often stated reasons for such requests by the war agencies are the advantage of having available a wholly independent and separate Government agency composed of men who are not only well organized in their technical work and familiar with conditions all over the country, but more important, are able to qualify as consultants and witnesses having no financial interest and in all respects disinterested and wholly aloof from local influences and vision.

These assignments, therefore, take a great deal of the time of our key technicians. Diversion to these war projects retards prosecution of the usual work of the Bureau all along the line. That is to say, 32 of our key employees, one-sixth of our entire staff, having devoted a substantial part of their time to special war assignments, the effect on the work that Congress has mandated the Commission to perform, is retarded out of all proportion to the one-sixth. It may drop the work to one-fourth or almost stop certain work. For example, as the result of requests from the Office of Defense Transportation for technical aid in handling the pipe-line operation and transportation of oil problems, a substantial part of the time of three key men in the pipe-line section is required. This results in the interruption for the time being of the work of valuing approximately a dozen pipe-line companies and other pipeline work not directly measurable by the time element alone. Luckily, so far as the basic valuations are concerned, these companies as a rule are new, small and relatively unimportant, and the work can be retarded in favor of war activities. In the Land Section there are seven instances where over 70 percent of the employees' time was spent on war work during the first half of this fiscal year.

No one can foretell what will be the volume or nature of the calls on the Bureau and the Commission in 1944, but at this time such calls are greatly on the increase and becoming more diversified. It is true that when these calls involve field work or extensive use of time of members of staff, the Bureau bills the war and other agencies for salaries and expenses, under the provisions of the United States Code, title 31, section 686. This restores to the funds of the Bureau the money expended in rendering the services requested, but it does not restore to the Bureau the time that is lost in meeting the mandate of Congress that the Commission shall keep itself informed of all changes, and have available at all times the information necessary to meet the various requirements of the Commission for which the legislation was primarily enacted.

Following the order dated June 16, 1941, covering the reorganization case of the Chicago Great Western Railway setting forth requirements that the opening of books of new companies shall be on the basis of original cost, there are at present, and will probably be projected into the year here under consideration, a flood of requirements on the Bureau to provide the specified bases. Already more than 123 carriers are at, or approaching, this stage of reopening books of reorganized companies resulting from receiverships, bankruptcy procedings, reorganizations, mergers or voluntary active movements on the part of individual carriers to set up their books on the basis prescribed. This work will continue as companies reorganize, and certainly extend into the year here under consideration.

The new depreciation order adopted by the Commission on June 8, 1942, provides that on certain road accounts on which depreciation accounting is to be set up there "shall be charged monthly to operating expenses or other appropriate accounts and credited to account 776, 'Accrued depreciation

road and equipment' amounts which will approximate the loss in service value not restored by current repairs or covered by insurance." The order also provides that "the charges for currently acruing depreciation shall be computed in confomity with the group plan by applying to the original cost. or the estimated original cost of the road property as found by the Bureau of Valuation such percentage rates as will distribute the service value by the straight-line method in equal annual charges to operating expenses or other accounts during the estimate life of the property." The order became effective January 1, 1943, and will throw on the Bureau a considerable volume of work in the period here under consideration. This involves work upon 1,320 operating and lessor companies.

The Bureau of Valuation is one of the principal sources drawn on in the Commission's cost work-the ascertainment of the cost of providing, maintaining and rendering service, and it is called on for exhibits showing recognized "elements of value," analyses of maintenance and depreciation, and other studies, and in some instances for recommended values. This has been one of the growing major activities of the Commission and should become more active in the period following the war.

SUMMARY

No one can foretell what will follow the war. It is certain, however, to be a time of great readjustments, reorganizations, and reappraisals. Some are already anticipating new needs for the up-to-date Nation-wide property and common carrier records which the Bureau has gathered at great expense in money and energy over a quarter of a century, the organized staff that has the "know-how" to handle them, and the public welfare view in their use. There never was a time when it was so necessary as now, to keep these records and this staff in good condition. While the railroads and pipe lines have thus far functioned well in meeting public demands, it is not beyond the range of possibilities, if the war continues long, that new relations between them and the Government might be necessary. In such instances the Bureau of Valuation records are the only Government records of the properties and the companies.

For the following reasons, the Bureau of Valuation should receive the appropriation of $649,000. It could economically use much more:

1. The Bureau is now understaffed.

2. Short-cut methods have been adopted until the breaking point is near and the efficiency and integrity of the records is threatened.

3. The Bureau is behind in its work.

4. Because of increased activity in use of data for many purposes.

5. Because of work essential in the war effort. Its war work saves the Government much more than its total appropriations.

In behalf of economy it can be said that the bureau's war operations save the Government great sums of money.

First. Members of staff of the Bureau of Valuation are paid only their regular salaries when on this work, and these are on an annual basis and are much less than the cost of outside agencies.

Second. Their appraisals and computations result in lower purchase prices and rentals. These savings undoubtedly amount to far more than the whole budget of the Bureau of Valuation.

Mr. WOODRUM. Is there anything you wish to add?

Mr. MILLER. No.

The CHAIRMAN. Unless there are some further questions, we thank you, gentlemen.

JANUARY 8, 1943.

NATIONAL ADVISORY COMMITTEE FOR AERONAUTICS STATEMENTS OF DR. JEROME C. HUNSAKER, CHAIRMAN; DR. GEORGE W. LEWIS, DIRECTOR OF AERONAUTICAL RESEARCH; JOHN F. VICTORY, SECRETARY, ACCOMPANIED BY E. H. CHAMBERLAIN, ASSISTANT SECRETARY; AND RALPH E. ULMER

GENERAL STATEMENT OF CHAIRMAN HUNSAKER

Mr. WOODRUM. We will take up the items for the National Advisory Committee for Aeronautics. Dr. Hunsaker, do you have a general statement to make to the committee at this time?

Dr. HUNSAKER. May I have a couple of minutes Mr. Chairman, to make a general statement of our position as of now?

Mr. WOODRUM. Yes.

Dr. HUNSAKER. The Appropriations Committee has been familiar with the work of the National Advisory Committee for Aeronautics since its establishment by law in 1915 and during the subsequent years when research and experimental facilities were provided at Langley Field, Va., at Moffett Field, Calif., and, more recently, at Cleveland, Ohio.

The National Advisory Committee for Aeronautics consists of 15 members appointed by the President, including 2 representatives each of the War and Navy Departments, and the Civil Aeronautics Authority, I representative each of the Smithsonian Institution, the United States Weather Bureau, and the National Bureau of Standards, together with 6 members from private life. All the members serve as such without compensation.

The Committee, of which I have the honor to be Chairman, would like to go on record at this hearing as being appreciative of the vision shown by the Congress in keeping the country ahead rather than merely abreast of scientific developments abroad in the field of aeronautics. I imagine you gentlemen of the Appropriations Committee cannot object to being reminded that your foresight in supporting aeronautical research has returned important dividends at this critical time in the form of outstanding performance of American combat aviation.

Beginning in 1937 the growing importance of the airplane to the national defense and to our domestic economy, led us to recommend, and your committee to approve, a somewhat radical expansion of the scale of scientific research facilities. That year marked the beginning of a construction program which has been supported by appropriations for new construction amounting to $38,507,425, and an expansion of staff from 446 in 1937 to 4,410 people proposed for the next fiscal year. That is a 10 to 1 expansion. We have been operating night and day the expanded wind-tunnel facilities at Langley Field in Virginia and the new aerodynamic laboratory at Moffett Field in California. The Aircraft Engine Research Laboratory at Cleveland is rapidly nearing completion and several units are already in operation with 600 employees on the job.

In addition to the intensive use of these facilities, we have farmed out to 30 university laboratories some 83 special research problems,

which they were equipped with facilities and personnel to handle. In this way the Committee has provided for the conduct of research on many problems without unnecessarily increasing its own facilities or personnel and has made effective use of existing private facilities without duplication of effort.

The Committee's proposed budget for 1944 is the amount needed to operate its enlarged facilities in accordance with the demands of the Army and Navy. Since Pearl Harbor, the projects of the N. A. C. A. have been controlled by the Aeronautical Board of the Army and Navy-priority is controlled by them. As the result of contact with the enemy in all parts of the world, new problems must be met by our flyers and, in turn, new requirements are imposed on our manufacturers. In some cases the new requirements cannot be met without extensive research and experimentation. Sometimes, improvements to correct defects in, or to improve the performance of, existing airplanes or equipment can quickly be found. At other times, a military requirement demands the discovery of an entirely new solution which is unknown to the art.

More rarely--fortunately, rarely-the discovery that enemy aircraft are in some feature superior to our own, demands urgent efforts to make up our deficiency. Research problems are usually created by our own foresight and experience, but we must be prepared for the unusual research problem created for us by the

enemy.

The Committee feels that the gaining of supremacy in the air will be essential to the winning of the war and that its contributions to the improved performance and effectiveness of American military aircraft are vital to the success of the whole aircraft program.

That is the justification for maintaining aeronautical research in time of war. Even though we have a great production program now, that production program cannot be frozen and is not frozen. We may be making a B-17, but it is a B-17-A-B-C-D up to now E, is it not, Dr. Lewis?

Dr. LEWIS. "F."

Dr. HUNSAKER. B-17-F; in other words, the production is continuous, but with change, with improvements, modifications, based on our own experience, our own foresight, and sometimes on what the enemy has that we discover we did not know he had.

Our Langley Field and Moffett Field laboratories are working on a two- and three-shift basis, as far as they can, within the limitations of competent personnel, and we plan to operate the Cleveland laboratory on a similar basis, as soon as we can.

I think that is enough on the general statement of the position we are occupying, and the justification of why we are in business, and why we do not abdicate because there is a war and the production man is in the saddle. Because the production man is in the saddle, we do not say that we do not care what the quality is so long as we have quantity. I do not think I need argue that before this committee.

Mr. FITZPATRICK. We have had a number of accidents recently. Quality of the airplane would help to prevent accidents, would it not? Dr. HUNSAKER. Oh, yes. Many of our research problems are created-I used a euphemism when I said "as of our experience." Sometimes that experience is an experience of dreadful accidents. We try to go behind those accidents and find out what could have been the

cause; was it some defect in the design, or something that was not understood or misunderstood.

Mr. FITZPATRICK. As Dr. Lewis knows, I have always been willing to make contributions to this cause, because it means the saving of life.

Dr. HUNSAKER. As we stand today, this budget estimate is substantially an operating estimate. We are not asking right now for new facilities, but are completing the facilities for which the Appropriations Committee has already provided. If it turns out later that we are in need of a facility that does not exist, naturally we will come back to your committee and talk about it then. But this $19,000,000 is an operating budget.

It contains $3,700,000 for the completion of the Cleveland laboratory, which has already been authorized.

May I correct myself there. Dr. Lewis reminds me that there is a $60,000 small gust tunnel at Langley Field that is included in that $19,000,000, to take care of new construction.

Mr. WOODRUM. The $3,000,000 item you mentioned is for Moffett Field instead of Cleveland, is that right?

Dr. HUNSAKER. Yes. That is the Ames Aeronautical Laboratory, at Moffett Field, Calif.

Mr. WOODRUM. The gross amount of your appropriation is practically the same, but the difference is that you had for 1943 something over $10,000,000 for construction and for 1941 you have something over $3,000,000. The difference reflects increased personnel and operating expenses?

Dr. HUNSAKER. Increased personnel and speeding up of operations, and the using of additional materials.

Mr. WOODRUM. Have you finished your statement, Doctor?
Dr. HUNSAKER. I have finished, sir."

SALARIES AND EXPENSES

Mr. WOODRUM. We will take up the first item on page 223, for salaries and expenses, as follows:

For necessary salaries and expenses of the Advisory Committee for Aeronautics, including contracts for personal services in the making of special investigations and reports; traveling expenses of members and employees, including not to exceed $2,500 for attendance upon meetings of technical and professional societies; periodicals and books of reference; equipment, maintenance, and operation of the Langley Memorial Aeronautical Laboratory, the Ames Aeronautical Laboratory, and the aircraft engine research laboratory at Cleveland, Ohio; purchase and maintenance of cafeteria equipment; maintenance and operation of motor-propelled passenger-carrying vehicles; not to exceed $319,500 for personal services in the District of Columbia, including one Director of Aeronautical Research at not to exceed $10,000 per annum; and not to exceed $2,500 for temporary employment of consultants, at not to exceed $50 per diem, by contract or otherwise, without regard to the civil-service and classification laws; in all, $15,672,000.

JUSTIFICATION OF 1944 ESTIMATES

Mr. VICTORY. May we put in the record at this time our complete justification of all of these items?

Mr. WOODRUM. Yes.

(The justifications referred to are as follows:)

81710-43-9