In 1910, when the steaming competition was first begun, prizes were paid as follows:

Nebraska.
Preble

Making a total of----

$1,439 203

1, 702

After these prizes were paid it was decided that it would not be expedient to award cash prizes again. The department then established the Navy E, which is the badge worn on the sleeve by enlisted men, indicating excellence in steaming competition.

These Es are issued to certain men on the vessels winning the steaming competition. Fifteen thousand dollars was made to cover the award of prizes, should it be deemed expedient to again issue them, but as it has been decided that no cash prizes are to be awarded the estimate was reduced.

The following tables show the appropriations and the balances there have been under this appropriation, and also the figures upon which the bureau's estimate is based:

Mr. ROBERTS. Do the men get cash rewards or medals? Admiral ANDREWS. They get badges, which we call the Navy "E,” to be worn on the sleeve. This badge indicates excellence in the steaming competition.

The CHAIRMAN. To be awarded to the ships themselves or to the individuals on the ships?

Admiral ANDREWS. The trophy goes to the ships and the men get badges, but do not get cash prizes, as they do for excellence in shooting.

The CHAIRMAN. Gunnery exercises?

Admiral ANDREWS. Yes, sir. This competition in the steaming exercises, the burning of coal, and the use of oil and waste, and other incidentals connected with the running of the ship, has had a very excellent effect in reducing the cost.

The CHAIRMAN. In a former hearing Admiral Cone told us it had reduced very substantially the consumption of coal.

Admiral ANDREWS. Very substantially; yes, sir; and has done so with the oil and waste and other things.

The CHAIRMAN. Is there any tendency to injure the machinery by his overzealousness?

Admiral ANDREWS. I think it has happened once or twice; they have been a little stingy with it, and perhaps have had a hot bearing or so, but that is not a permanent injury.

Mr. ROBERTS. That would be to their discredit, would it not?
Admiral ANDREWS. Yes, sir.

The CHAIRMAN. Instead of getting prizes, that ought to be counted as a demerit, ought it not?

Admiral ANDREWS. It should be. I do not know just how they work that in, except if it happens on a speed trial they would lose out entirely—if it happened at such a time as that, when it is most likely to happen, they would lose out entirely-and the ship would be out of the competition then, because no excuses are accepted in those cases. It is just like shooting-if a gun does not get its shots off, nobody cares what the reason is; and the same way with an engine if it will not run at the time the speed trial is set, that puts them all out of business and nobody cares, except to find fault; nobody cares what it is. I mean an excuse does not go at all.

Mr. ROBERTS. It does not help them in the matter of the competition?

Admiral ANDREWS. No; it does not help them anywhere.

The CHAIRMAN. With this acute competition going on, how do you account for the fact that you spent less than $3,000 out of the $15,000 for prizes, trophies, and badges during the year, with the keen competition among the men and the desire to carry out that plan?

Admiral ANDREWS. The trophies are only bought once, and are transferred to the winning ship each year; and cash prizes are not now given, which accounts for the balance. The other expenses, of tabulating and printing, apparently have not been as high as expected.

The CHAIRMAN. "Outfits on first enlistment," and the language is the same, but the appropriation is reduced from $900,000 to $882,070, a reduction of $17,930. You may answer that, and I will turn to another matter just above it which I skipped.

Admiral ANDREWS. The decrease shown here is $17,930 under the current appropriation. The estimate for 1914 was obtained by determining what per cent of the authorized enlisted strength was represented during the past five years by first enlistments. This was found to be 30.564 per cent. That percentage of 51,500 men, the present authorized number, is 15,740 men, the number we expect to enlist on first enlistment during 1914. The cost of outfits for this number of men, at $60 per man, is $944,400. We also found, by taking the actual average expenditures for the past five years, that only 0.934 per cent of the full amount required was actually expended. Nine hundred and thirty-four thousandths per cent of $944,400, given above, is $882,069, which is practically the amount of the estimate submitted.

The following table gives the figures used in obtaining the percentages used in obtaining the above estimate.

Statement showing number of men allowed, the number of men enlisted under first enlistment, the amount required, the amount appropriated, the amount expended, the amount returned to the Treasury, and the unobligated balance for each fiscal year from 1908 to 1912 and the estimate for 1914, together with the amount it is estimated will be expended in 1914.

Cost, at $60 per man.

Percentage expended of amount required for four years ending June 30, 1911..
Estimated amount to be expended during fiscal year ending June 30, 1914, estimate computed on
per cent basis of expenditures for the four years ending June 30, 1911..

30.564

15,740

$944, 400

0.934

$882,069

The CHAIRMAN. So that the balance of $317,900 and some odd dollars

Admiral ANDREWS (interposing). Is turned back into the Treas

ury.

The CHAIRMAN. But that balance does not necessarily indicate that you may not need that much this next year. Might we not reduce that more?

Admiral ANDREWS. We have reduced it.

The CHAIRMAN. You reduced it $17,930, but you had a balance the year before of about $317,000. How would it do to reduce that to $150,000? Would that meet your requirements?

Admiral ANDREWS. It would not be possible to furnish these outfits on that amount. You will note that the table given above is a very detailed explanation of this estimate, and is based on the actual number of enlistments and expenditures in recent years.

The CHAIRMAN. Now, let us take "Aviation experiments for the experimental work in the Navy," $10,000, the same as last year. Mr. ROBERTS. Should not that be increased?

Admiral ANDREWS. Capt. Chambers thinks we can get along on it. The CHAIRMAN. You also got along the year before last on it, did you not?

Admiral ANDREWS. During 1912 we had $25,000, but we then purchased all machines out of it, and I think it is just as well to leave it alone for this particular year.

The CHAIRMAN. This is in the Bureau of Navigation. There are two or three other appropriations.

Admiral ANDREWS. Two other appropriations under the Bureaus of Construction and Repair, and Steam Engineering. The only thing we should do, and I think it will meet with your idea, is that this year the limit placed on the engineering and construction and repair appropriations should be taken off.

The CHAIRMAN. I wish to make a statement here, that we put in just exactly what the bureaus asked for.

Admiral ANDREWS. I know it; yes, sir.

Mr. ROBERTS. We did more than that, Mr. Chairman.

The CHAIRMAN. No. Admiral Cone stated $20,000 was all he wanted. Then when the bill was in conference we call him up and asked him if he wanted it increased, and he said "No." Admiral Watt had first stated about it and we had a limitation of $10,000, and we called Admiral Watt up in the conference and he stated that he would like to have $35,000, and we, in conference, increased it to $35,000, giving him the full amount he wanted.

Mr. ROBERTS. But you will remember, Mr. Chairman, they could have used more than those amounts.

The CHAIRMAN. He said not. The language he put in his hearing. was that $20,000 was all he could use.

Mr. ROBERTS. I understand, but had they found occasion, so far as the law itself went, they could have used more if we had not put a limitation on it. They could have used the whole appropriation for that purpose.

The CHAIRMAN. Yes; these things are in the experimental stage. I should not wish it to run wild.

Mr. ROBERTS. While they asked for a certain amount, we fixed it so they could not use any more if they wanted to.

Admiral ANDREWS. Admiral Cone told me the other day that he thought for the first year or so the limit was a good thing, to keep the thing in bounds.

The CHAIRMAN. Certainly; and to keep too much pressure from being brought to bear.

Admiral ANDREWS. But he thinks now it might well be left off, because the bureaus themselves, whose total appropriations have not been increased to take care of this item, will take care that they do not spend too much of their money because it is entirely in their hands. The appropriation of $10,000, though, under the Bureau of Navigation, is run pretty close and is used as much as anything for purchasing navigational and stabilizing instruments. It is necessary to purchase a number of samples abroad of all the various kinds of instruments and test them out to find which is the best, as well as to make some of our own. The instruments referred to are nautical compasses, altimeters, barographs, inclinometers, anemometer speed measurers, indicators of various kinds, and stabilizing devices, on which work comparatively little has been done in this country. All these features in the development of aviation are of great importance. This appropriation also comes in useful when quick work of any kind is necessary, when experiments are being carried on and when a few hundred dollars is wanted right away to expedite work, and saves a great deal of delay and confusion.

Mr. ROBERTS. That is just what I was getting at. If we are going ahead with aviation in the Navy, it means they have to have more machines, and necessarily more repairs.

Admiral ANDREWS. Yes; and each machine should have two motors. Of course that comes under "Engineering."

The CHAIRMAN. And "Construction and repair"?

Admiral ANDREWS. "Construction and repair" furnishes the frame part, but the Bureau of Navigation's appropriation "Aviation ex

periments," as I understand it, makes small, quick repairs, if some little part breaks, and buys instruments as referred to above.

Mr. ROBERTS. Í understood the navigation appropriation was put in to pay the extra expenses of the men that were engaged in this aviation-their transportation, and things like that?

The CHAIRMAN. That is what I understand. These things to meet the personnel.

Mr. ROBERTS. They were to take care of the repairs and everything else in the other two bureaus-that was the impression they gave me. Admiral ANDREWS. That was not my understanding. Transportation for men and freight can not be paid out of this appropriation.

The CHAIRMAN. The next is "Maintenance of naval auxiliaries." The language is the same as last year, but it is increased from $768,000 to $850,000.

Admiral ANDREWS. The estimate under this appropriation was an increase over the current year of $81,627. This estimate is based on the needs for the coming fiscal year and embraces the following program:

Mr. ROBERTS. How many last year?

Admiral ANDREWS. The total is about the same as last year; practically the same; but the size has increased; there are four of the bigger ones, and computing the pay on a ratio for each one of these colliers in detail in service and in reserve gives the total of the estimate. The estimate is based on the pay and subsistence and $10,000 added for the transportation of the officers and men and necessary and incidental expenses. It was found out during the last quarter of the last fiscal year-about May-that if we continued all the colliers in service which were then in active operation there would be a deficiency of about $30,000 under this appropriation, and we hurriedly and unwillingly put six of them out of service-on reserveto avoid this deficiency. The placing of these vessels out of service embarrassed the department a great deal, and it is thought there should be a sufficient amount of money to avoid such a contingency again. On June 30 it was reported to the bureau that the balance under this appropriation would be about $7,000. The returns are not yet complete enough to give an accurate balance, but the balance will probably be more than that. However, it is a very difficult thing to run the colliers as close as that because each one of them would mean about an average of $1,000-the big ones run up to $5,500 a month-so that one collier out of service means a large yearly amount, and five or six of them would make a very large difference.

The CHAIRMAN. In instead of out?