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Admiral Cowie. At a conservative estimate, $5,000. That is the reason we put in the extra amount.

Mr. ROBERTS. That accounts for the increase ?
Admiral CowIE. Yes, sir.

The CHAIRMAN. Did you have any unexpended balance in that item last year?

Admiral CowIE. No, sir; we had a little deficiency of $11,945.25, which at the present time is estimated. That may be changed some.

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Statement of appropriation "Contingent, Supplies and Accounts, 1912," as per annual report.

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Description.

Amount appropriated..
Credits, miscellaneous.

Total

Labor, indirect, and

material,

1911

1912

$656.25
205.82

3. 83

$133. 93
1,166. 82

40.00
232.84

9. 24
581.94
20, 259.39
7,472.17

15.50

. 48

16,035.97

116.51
31.68

68,366.36

1,690.64
20,779.99

Buildings.
Furniture
Trucks (vehicles and live stock).
Power plants.
Tools (machinery and tools).
Office force
Office supplies (office supplies and equipment)..
Handling stores.
Repairs to equipage (ashore).
Repairs to equipage (afloat).
Storekeeping.
Incidentals.
“B” and “Y” stores (supplies afloat)
Ships' bills (supplies afloat, titles "B"and"Y").
Heat, light, power, and water
Title “Z," labor
Tugs and lighters..
Yard appliances.
Coaling plants.
Inspection.
Grounds..
Oaths (incidentals).
Printing (books and blanks)..
Waste, title “W”

78,818.83
18,134.84
25, 452.60

14,719.67

4.10

17,170.32

42.47

685.90

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The CHAIRMAN. The estimate for freight is the same as the appropriation last year. Did you have any unexpended balance?

Admiral COWIE. We had an indicated balance of $74,250.16 for 1912, but we reduced the amount last year, as you remember. This is an appropriation that you can not really tell anything about. As you will remember, I said last year that a reduction would not make any difference if it came out all right.

The great difficulty with this appropriation is due to the delay of the railroad and steamship lines in rendering their bills and vouchers. In some cases a year elapses.

The CHAIRMAN. This $74,250 may be materially reduced ?

Admiral CoWIE. Very materially reduced. I think it would be unwise to cut it any further than you did last year. The year before that we had $535,000.

The CHAIRMAN. And we reduced it to $450,000 last year?

Admiral CoWIE. Yes, sir. It would not do to reduce that appropriation any more.

Freight, Bureau of Supplies and Accounts.

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The CHAIRMAN. All through the estimates of the different bureaus, your bureau and the Bureau of Ordnance and the various bureaus, they have the general statement here, “public bills," for instance, under “Freight, Bureau of Supplies and Accounts.” What does that embrace?

Admiral CowIE. Public bills chargeable to that appropriation. The CHAIRMAN. What does "public bills” mean?

Admiral Cowie. Any voucher that is prepared for the payment of money under the appropriation concerned other than pay rolls. Any such voucher we prepare we call a public bill, a public voucher.

The CHAIRMAN. In other words, it embraces any item. After the previous item, “Provisions, Navy,'' you have “public bills, $286,000” ?

Admiral COWIE. Yes, sir.
The CHAIRMAN. And you have “Material, $6,000,000"?
Admiral COWIE. Yes, sir.

The CHAIRMAN. And “Miscellaneous, $487,000.”' What does "public bills" mean?

Mr. Macon. What is the difference between "public bills" and "miscellaneous"?

The CHAIRMAN. Not only in the Navy Department, but in all the departments, in submitting the estimates they say “public bills,” covering many millions of dollars.

Admiral Cowie. That is prepared in accordance with the provision put in section 6 of the sundry civil act approved August 24, 1912, that the estimates should be submitted this year in that way.

The CHAIRMAN. What differentiates "public bills" from "miscellaneous"?

Admiral CowIE. When they say "miscellaneous" it means that it has not been decided exactly where that account can go in, and it will probably be subdivided later into “material" or "public bills."

The CHAIRMAN. 'Public bills" may embrace, as I understand, various classes of items?

Admiral Cowie. Yes, sir; under the appropriation and chargeable directly to that appropriation.

The CHAIRMAN. I know; but miscellaneous" is chargeable directly to the appropriation.

Admiral CowIE. Yes, sir; but has not been subdivided into these different classes. I will prepare a fuller explanation.

The CHAIRMAN. I wish you would insert in the record an intelligent explanation defining what these "public bills” include and what "miscellaneous" bills include?

Admiral COWIE. Yes, sir. It has been found necessary to establish certain general headings in order to differentiate between the expenditures for the Navy. These headings are “Labor," " “Material," "Public bills,” and “Miscellaneous.

“Labor” is for work performed at a navy yard where the employee is paid by the means of a pay-roll and pay ticket.

“Material" is for material drawn from store for use, material purchased for store or for supplies for ships which become a charge against the cost of commission.

"Public bills" may be for either services or materials which are applied direct to objects under an appropriation, services not being paid on a pay roll and materials not being taken into store.

“Miscellaneous” is principally for outstanding contracts or requisitions which after payment would be located either to material or public bills.

Transfer of materials between appropriations. Transfers or adjustments in stores. Miscellaneous expenditures made on pay rolls which can not be classified as either labor, material, or public bills, such as checkages for hospital fund, courts

martial sentences, travel allowance, losses in stores, etc.

The CHAIRMAN. And what differentiates one from the other?
Mr. BUTLER. And please give us a few examples.
Admiral COWIE. Yes, sir; I have those here now.

Analysis of figures appearing under the estimate for pay, miscellaneous, 1912. The labor shown, viz, $244,320.88, is taken from the records of appointments maintained in the Secretary's Office of the Navy Department and is for payment of clerical force.

The analysis of the figures shown in column 8, Table 1, Statement A, Paymaster General's Report, gives $118,696.25 for labor. The charge for labor in this column is on account of the payment to the clerical force of purchasing pay offices, etc., which is made on a public hill. This amount of labor, viz....

$118, 696. 25 Added to the total amount of labor shown in column 9.

146, 015. 23 Gives a total of......

264, 711. 48 Deducting the amount shown as paid to the clerical force by the records of the department, viz..

244, 320.88 Leaves a balance of..

20, 390. 60 Which is the amount paid on account of unclassified labor.

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