INCREASE OF THE NAVY.

Increase Navy, construction and machinery: On account of hulls and outfits of vessels and machinery of vessels heretofore and herein authorized, $21,814,091, to be available until expended: Provided, That the unexpended balances of all moneys heretofore appropriated under the appropriations "Increase of the Navy, construction and machinery, "Increase of the Navy, torpedo boats," "Increase of the Navy, colliers," and Increase Navy, equipment," are hereby transferred to this appropria

tion.

Explanation. The above appropriation is made up as follows:

Increase, Navy:

Construction and machinery...
Torpedo boats..

Equipment...

Total.....

$19, 400, 728 2,058, 363 355,000

21, 814, 091

Armor and armament: Toward the armor and armament for vessels heretofore and herein authorized, $19,352,579, to be available until expended: Provided, That no part of this appropriation shall be expended for armor for vessels except upon contracts for such armor when awarded by the Secretary of the Navy to the lowest responsible bidders, having in view the best results and most expeditious delivery: Provided further, That hereafter no part of this appropriation shall be expended for the manufacture of spare guns or mounts, and that all spare guns and mounts previously manufactured under this appropriation shall be available for general use.

85873-13- -5

The CHAIRMAN. Is there any further suggestion?

Admiral CowIE. I have a number of memorandums concerning stores here which I will put in the hearings the same as last year. I have also a memorandum which I have prepared showing the difference between this year's annual report and last year's, for the purpose of making comparisons.

I took up with the department this morning, but did not have time to get the Secretary's decision, the question of taking the clerks who are now employed in the accounting office, some paid from supplies and accounts, some steam engineering, and some construction and repair. The idea is to pay them all from one appropriation, and in case the department decides to do that there is about $218,000 that I would like to have added to the appropriation for clerical force under Supplies and Accounts.

The CHAIRMAN. And deducted from some other appropriation? Admiral CowIE. The appropriations in the different bureaus. The CHAIRMAN. Insert that in the hearing.

Admiral CowIE. It would put them all under one appropriation instead of paying them out of four or five appropriations.

The CHAIRMAN. If it is finally recommended, insert it in the hearings, and also indicate the deductions to be made from each appropriation to make up the amount transferred.

Admiral CowIE. Yes, sir.

[Memorandum.]

I desire to call the attention of the committee to several changes in my annual report for the fiscal year 1912, so that in drawing comparisons the facts will be before the committee.

It will be noted that Table 2, Statement B, has been changed by the addition of 4 columns at the end of the table.

In column 18, the total labor, indirect, material, and bills is shown for each appropriation.

Column 19 shows labor, material, and bills, the indirect having been divided between labor and material.

Column 20 shows the material drawn from the naval supply account.

Column 21, the material purchased directly under appropriations, and column 22 the total of the appropriations.

Title W has been moved to the left so that it is included in the total in column 18. The over and under absorbed indirect expense is shown in column 17, instead of being in column 16, as in 1911.

The issues and incidental bills under titles B, C, and Y have been moved to Statement C, pages 153 and 154.

It will be noted that the totals for labor, indirect, material, and bills, shown in column 19, in Table 2, Statement B, agree with the recapitulation in Statement A, Table 1.

The total indirect expense shown in Tables 1 and 2, Statement B, is explained in detail in Tables 19, 20, 21, and 22.

The recapitulation shown in Table 21 gives the amount of total direct shop expense, the power transfer from Table 22, and the general expense transfer from Table 20. Statement F has been rearranged and additional columns inserted to show: (a) The vessels by types, (b) equipage and supplies under the various bureaus separately, and repairs for hull and machinery separate from repairs to equipage.

In making a comparison between the years 1912 and 1911 it will be noted that titles E and F have decreased and title R increased, and that title G has decreased and title S increased. This is due to the rearrangement of the navy yards and stations so as to show those which are of a purely military nature under the military titles. This rearrangement was partially accomplished for 1911 by the rearrangement of Table 18, as shown in my hearing, pages 318-321, of January 31, 1912. It was impossible during 1911 to carry this rearrangement, shown in this redrafted Table 18 in my hearing, to tables of the various titles.

OPERATING CREDITS.

In accordance with the deficiency act of June 25, 1910, operating credits have been given the following appropriations during the fiscal year 1912:

Current and miscellaneous expenses, Naval Academy, 1912.

Ordnance and ordnance stores:

Contingent, Supplies and Accounts, 1912.

Overobligated appropriations, 1912.

Remarks.

Account floating crane, authorized but not appropriated for.

Deficiency appropriation Aug. 26, 1912, to

Cover.

Account floating crane, authorized but not appropriated for.

Obligations have been reduced sufficient to take care of this deficiency.

Do.

Auditor's adjustment, to come, will take care of this deficiency.

Deficiency appropriation Aug. 26, 1912, to

Cover.

Contracts, new ships, authorized but not appropriated for.

New appropriation available July 1, 1912. Due to Scorpion expenditures, third quarter, 1912; amount will be reduced by transfers to $5,500.

Deficiency appropriation Aug. 26, 1912, to

Cover.

Caused by N. S. A. issues, April, 1912.
Due to increased cost of ration over estimate;
will be reduced.

cover.

Deficiency appropriation Aug. 26, 1912, to Account heat and light charges, deficiency estimate submitted; no action by Congress. Deficiency appropriation Aug. 26, 1912, $110,000.

Deficiency appropriation Aug. 26, 1912, $17,442.32.

Deficiency appropriation Aug. 26, 1912 $13.951.37.

Obligations will be reduced to take care of this overobligation.

Deficiency appropriation Aug. 26, 1912, $61,279.17.

Deficiency appropriation Aug. 26, 1912, $7,759.22.

Deficiency appropriation Aug. 26, 1912, $1,400.

Deficiency appropriation Aug. 26, 1912, $7.37.

Credits to fund not settled; overobligation much less than last year.

Statement showing value of stores, by classes, on hand at the several navy yards, stations, and ships on June 30, 1911, and June 30, 1912.

CONSUMABLE STORES.

SECTION 1. STORES NOT CONTROLLED BY THE BUREAU OF SUPPLIES AND ACCOUNTS.

Statement showing value of stores, by classes, on hand at the several navy yards, stations, and ships on June 30, 1911, and June 30, 1912-Continued.

CONSUMABLE STORES-Continued.

SECTION 2. STORES CONTROLLED BY THE BUREAU OF SUPPLIES AND ACCOUNTS.