each year without forfeiture of pay during such leave: Provided, That it shall be lawful to allow pro rata leave only to those serving twelve consecutive months or more: And provided further, That in all cases the heads of divisions shall have discretion as to the time when the leave can be allowed without detriment to the service, and that absence on account of sickness shall be deducted from the leave hereby granted.'"

"The construction (c) put upon the decision in question by the commandant is undoubtedly correct, and so is the decision. The construction (d) by the commandant is a fair construction of said decision.

"The law as I stated it in 16 Comptroller's Decisions, page 379, is not clear in its terms, and its true meaning is difficult to arrive at where a practicable application is sought to be made. The difficulty is in arriving at what is meant by the proviso That it shall be lawful to allow pro rata leave only to those serving 12 consecutive months or more.' I took it, when I wrote the decision construed, and I take it now, that Congress did not intend to allow leave with pay until there had been a continuous service of one year. What. then, is the status of the person entitled to leave during the second year of his service. I am of opinion that during the second year the 15 days which he is entitled to earn under the statute during said year may be granted to him. I appreciate the difficulty as to the granting of this pro rata leave earned during the second year within the year, for the reason that all of it is not strictly earned until the close of the year, when there would not be time enough within which to enjoy it during the year.

"It is to be noticed that this pro rata leave is not pay for leave, as is provided by the law governing the pro rata leaves in the Public Printing Office. but leave with pay. I know of no better construction to give the act than the one given in the decision referred to in your letter and the construction put upon this decision by the commandant. The act should be amended and put in such shape that it can be put into practical effect, or such legislative construction should be put upon it as will make clear its meaning."

4. Under the above decision leave with pay may be granted to per diem laborers and mechanics as follows:

(a) During the second service year 30 days' leave with pay is allowed15 days at any time during the year and 15 days at the rate of 14 days per month, as earned, from the date of the first anniversary.

(b) During the third or any subsequent service year 15 days at the rate of 13 days per month, as earned, from the beginning of the service year.

(c) That in any case the right to leave with pay lapses at the end of the service year in which it is due.

5. Per diem laborers and mechanics at navy yards and naval stations shall not receive pay for national holidays unless carried on the rolls for said holidays. If absent for six successive musters immediately before a national holiday, unless on leave granted by the commandant, they must be dropped from the rolls in accordance with paragraph 70 of Navy Yard Order No. 23. second revision, and in such event shall not receive pay for national holidays. Employees on leave of absence without pay shall not be allowed pay for holidays occurring during such period of leave without pay.

6. Under the decisions of the Comptroller of January 16, 1906, and November 16, 1906, per diem laborers and mechanics who are granted leave without pay or furloughed without pay may be allowed pay for the same in lieu of taking leave with pay which is earned later on in the service year. In making payments in these cases the particular dates on which the employees were absent without pay and for which payment is to be made should be shown on the pay roll.

PER DIEM EMPLOYEES OF THE CLERICAL, DRAFTING, INSPECTION, MESSENGER, AND WATCH FORCE.

7. The act approved March 3, 1909, provides as follows:

"That hereafter the rates of pay of the clerical, drafting, inspection, and messenger force at navy yards and naval stations and other stations and offices under the Navy Department shall be paid from lump appropriations and shall be fixed by the Secretary of the Navy on a per annum or per diem basis as he may elect that the number may be increased or decreased at his option, and shall be distributed at the various navy yards and naval stations by the Secretary of the Navy to meet the needs of the naval service, and that such per diem employees may hereafter, in the discretion of the Secretary of the Navy, be granted leave

of absence not to exceed fifteen days in any one year, which leave may, in exceptional and meritorious cases, where such an employee is ill, be extended, in the discretion of the Secretary of the Navy, not to exceed fifteen days additional in any one year;

8. Under date of September 10, 1909, the Comptroller decided that this act is a special provision authorizing the granting of leave of absence to per diem employees of the clerical, drafting, inspection, messenger force, etc., at navy yards and naval stations, and that the act of February 1, 1901, does not apply to the class of per diem employees mentioned in the act of March 3, 1909. Under the provisions of the latter act per diem employees of the clerical, drafting, inspection, messenger force, etc., at navy yards and naval stations, may be granted leave of absence with pay not to exceed fifteen days in any one calendar year, and, in the discretion of the Secretary of the Navy, said leave may be extended not to exceed fifteen days in any one calendar year in exceptional and meritorious cases where such an employee is ill.

9. Employees whose leave is covered by the act of March 3, 1909, are not required to serve 12 consecutive months before attaining a leave status. However, it is directed that no such employee be granted, during the first year of employment, more than one and one-fourth days' leave with pay for each month of service.

10. Per diem employees of the clerical, drafting, inspection, messenger. and watch force may be granted, in the discretion of the Secretary of the Navy, an extension of leave not to exceed 15 days in any one calendar year in exceptional and meritorious cases where such employee is personally ill.

11. An exceptional and meritorious case can not be defined in any general rule, but must depend upon the exercise of a reasonable discretion in the consideration of the circumstances. However, when a per diem employee has been absent with pay 30 days in a year for 2 years in succession his case will not be considered as exceptional and meritorious, and any absence granted over and above 15 days in the third or successive years will, as a rule, be without pay.

PER ANNUM EMPLOYEES OF THE CLERICAL, DRAFTING, INSPECTION, MESSENGER, AND WATCH FORCE.

12. In the absence of restrictive legislation in regard to per annum employees at navy yards and naval stations, said employees are granted leave with pay under the same conditions as employees in the Navy Department proper at Washington in accordance with the provisions of section 7 of the legislative act approved March 15, 1898, which reads as follows:

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Hereafter it shall be the duty of the heads of the several executive departments, in the interest of the public service, to require of all clerks and other employees, of whatever grade or class, in their respective departments, not less than seven hours of labor each day, except Sundays and days declared public holidays by law or Executive order: Provided, That the heads of the departments may, by special order, stating the reason, further extend the hours of any clerk or employee in their departments, respectively; but in case of an extension it shall be without additional compensation: Provided further, That the head of any department may grant 30 days' annual leave with pay in any one year to each clerk or employee: And provided further, That where some member of the immediate family of a clerk or employee is afflicted with a contagious disease and requires the care and attendance of such employee, or where his or her presence in the department would jeopardize the health of fellow clerks, and in exceptional and meritorious cases where a clerk or employee is personally ill, and where to limit the annual leave to 30 days in any one calendar year would work peculiar hardship, it may be extended, in the discretion of the head of the department, with pay, not exceeding 30 days in any one case or in any one calendar year.

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This section shall not be construed to mean that so long as a clerk or employee is borne upon the rolls of the department in excess of the time herein provided for or granted that he or she shall be entitled to pay during the period of such excessive absence, but that the pay shall stop upon the expiration of the granted leave."

13. The deficiency act approved July 7, 1898, contains the following paragraph:

85873-13-40

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Nothing contained in section seven of the act making appropriations for legislative, executive, and judicial expenses of the Government for the fiscal year eighteen hundred and ninety-nine, approved March fifteenth, eighteen hundred and ninety-eight, shall be construed to prevent the head of any executive deparmtent from granting thirty days' annual leave with pay in any one year to a clerk or employee, notwithstanding such clerk or employee may have had during such year not exceeding thirty day's leave with pay on account of sickness as provided in said section seven."

14. Per annum employees of the clerical, drafting, inspection, messenger, and watch force may be granted, in the discretion of the Secretary of the Navy, an extension of leave with pay not to exceed thirty days in any one calendar year upon any one of the following conditions:

I. Where some member of the immediate family of a per annum clerk or employee is afflicted with a contagious disease and requires the care and attendance of such employee.

II. Where, through exposure to contagious disease, whether in his own family or not, the per annum employee's presence in the department would jeopardize the health of fellow clerks.

III. In exceptional and meritorious cases, where a per annum clerk or employee is personally ill, and where to limit the annual leave to thirty days in any one year would work peculiar hardship.

Condition III is made up of a group of facts or circumstances which must combine to authorize the granting of leave on account of personal illness. The case must be (1) exceptional, (2) meritorious, and (3) such that a denial of the leave would work not ordinary but peculiar hardship. What will in this connection constitute an "exceptional" case, a "meritorious" case, and “peculiar hardship" can not be defined in any general rule, but must depend upon the exercise of a reasonable discretion in the consideration of the circumstances. However, when a per annum employee has been absent with pay forty days in a year for two years in succession, his case will not be considered "exceptional," and all absence granted over and above thirty days in the next or third successive year will, as a rule, be without pay.

15. Applications by per annum and per diem employees of the clerical, drafting, inspection, messenger force, etc., must be made on Navy Yard Orders, Form 31.

16. Applications by employees carried on the rolls of a yard or station, who are detailed for duty at private shipbuilding or manufacturing establishments. for leave of absence, must be on Navy Yard Orders. Form 31. Leave in such cases may be granted by the officer in charge of the office instead of by the commandant.

17. Under decisions of the Attorney General and the Comptroller of the Treasury, dated May 1 and August 20, 1909, respectively, half holidays occurring within or at the beginning or end of a period of absence on annual leave will not be charged against said annual leave.

18. Employees at navy yards and stations, including laborers and mechanics, absent on leave with pay on Saturdays occurring during the months of July, August, and September will be charged with four hours for each Saturday absent.

19. Employees absent on leave without pay or on sick leave on the Saturdays above mentioned will be charged with a whole day for each Saturday absent.

20. The granting of sick leave to per annum and per diem employees of the clerical, drafting, inspection, messenger, and watch force is not contingent upon their exhausting their annual leave.

21. The head of department or office shall carefully consider every applica tion for leave with pay on account of sickness, and in the exercise of a sound discretion shall certify to the Secretary of the Navy such only as in his opinion ought to be granted. Such certificate should state on what ground the application is based, and should be accompanied with such certificates of health officers or physicians and such statements from the applicant or others as will satisfactorily establish the facts.

22. Sundays and legal holidays occurring within a period of absence on account of sickness will be charged, but when occurring at the beginning or ending of such absence will not be charged.

23. Sundays and legal holidays occurring within or at the beginning or ending of leave with pay will not be charged.

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24. Per diem employees will not be charged with Sundays in any event, as they do not receive pay for such days.

25. An annual report on navy-yard orders, Form 32, "Record of leave of absence," covering all employees in the classified competitive service, shall be forwarded to the department, through the usual official channels, not later than January 10 of each year.

26. All previous navy-yard orders and decisions in conflict with this order are hereby revoked.

BEEKMAN WINTHROP, Acting Secretary of the Navy.

The CHAIRMAN. Some of the employees at the navy yard have comnunicated with me and also, I think, with some of the other members of the committee, contending that they get only 15 days annual leave and that the usual annual leave to the clerical force in the classified service is 30 days. I am not sure, but it occurred to me that this distinction was that all of the employees in the classified service who are on the annual roll get 30 days and that those on the per-diem roll get 15 days. I would be glad if you would insert in the hearings a full explanation and statement of why it is that some get 15 days and others get 30 days.

Secretary MEYER. I want to say in connection with this work that if we get the other departments I think they are going to cooperate to have their repairs on ships and in many instances the construction of the smaller ships done at the navy yards, it will create a constant flow of work, and we can get a uniform number of skilled workmen permanently in our yards, which will increase the efficiency of the yards. It will relieve the Congressman who has a navy yard in his district from embarrassment and from the heartrending complaints of lack of labor and lack of employment, and it would be beneficial to the Government as a whole. Now, we are on an eighthour basis, and we have shown in many of our estimates that we can build ships of a certain character as cheap or cheaper than private vards. That was shown in the figures which came in on the question of the building of the river gunboat for use in China.

The CHAIRMAN. In the last appropriation bill the fuel ships or colliers were directed to be built in navy yards?

Secretary MEYER. Yes, sir; that is my recollection.

The CHAIRMAN. Have you made any definite estimates?

Secretary MEYER. Yes.

Mr. ROBERTS. Did they come within the limit, do you recall?
Secretary MEYER. Yes; at Mare Island.

Coal lands have been assigned to the Navy, and now oil lands have been assigned to the Navy for use in the future.

Mr. ROBERTS. There has been no development of the oil lands?
Secretary MEYER. No; they are only in reserve.

Mr. GREGG. That is by a recent order?

Secretary MEYER. Within 60 days.

Mr. ROBERTS. Are you contemplating any immediate survey or development of the oil lands?

Secretary MEYER. No; not at the moment.

The CHAIRMAN. The question of the cost of oil is a very important one to the Navy?

Secretary MEYER. Yes; because the consumption is going to increase very materially.

The CHAIRMAN. Has not the price increased about 60 per cent? Secretary MEYER. Yes; and coal is higher, too.

The CHAIRMAN. I have some letters from you, Mr. Secretary. I have a letter from you with reference to certain historic ships-the Constellation, Portsmouth, and Olympia-which I will insert in the hearings at this point.

Can you put in the hearings an estimate of what the approximate cost would be to carry out the program as outlined in your letter, so that we may see what the estimated cost will be for those ships?

Secretary MEYER. Yes, sir. It was not the intent of the department to ask for any additional appropriation for the repairs and preservation of the Olympia, Portsmouth, and Constellation, but to accomplish the same under the sanction and approval of the Congress from the funds of the department.

The restrictive features of existing laws make it incumbent upon the Secretary to sell useless and obsolete vessels when the estimated cost of their repairs are in excess of 10 per cent for wooden vessels and 20 per cent for iron and steel vessels of the estimated cost of a new ship of the same size and like material.

The existing limits prevent expenditures in excess of $40,000 on the Constellation, $22,500 on the Portsmouth, and $200,000 on the Olympia.

For purely military reasons no money should be expended on any of these vessels, but it is considered desirable that they be retained as an inspiration to the Navy and to the country at large, and it is with this object in view that congressional approval is sought.

It should be distinctly understood that the authorization requested will not permit the rehabilitation of the Portsmouth for a trip to the Pacific, the estimates and cost of such work will be made the subject of separate report to the committee.

The letter referred to by the chairman follows:

NAVY DEPARTMENT, Washington, January 6, 1913.

MY DEAR MR. CHAIRMAN: The custom of selling unserviceable vessels will before long dispose of the Constellation, Portsmouth, and Olympia unless their preservation be especially authorized. These vessels could be preserved almost indefinitely with a small expenditure for occasional repairs, and their names would be a constant inspiration to the Navy and to the country at large to live up to their noble traditions.

It is therefore requested, in order to insure the preservation of these vessels, that a proviso, "that nothing herein contained shall deprive the Secretary of the Navy of the authority to cause the necessary repairs and preservation of the United States ships Constellation, Portsmouth, and Olympia,” be inserted in the naval appropriation bill in the section Bureau of Construction and Repair (construction and repair of vessels) next after the restrictive clause, "that no part of this sum shall be applied to the repairs of any other ship where the estimated cost of such repairs, to be appraised by a competent board of naval officers, shall exceed 20 per cent of the estimated cost, appraised in like manner, of a new ship of the same size and like material."

Action similar to that recommended was taken by Congress in regard to the Hartford and Kearsarge in the naval acts of July 19, 1892, and March 3, 1893. Should the above features be incorporated in the act. I desire to invite attention to the fact that such provision will not permit of the rehabilitation of the Portsmouth for the contemplated trip to the Pacific-the repairs and preser