Coal.-Fifteen per cent reduction from average for first quarter, 5 per cent reduction on account of price, 10 per cent reduction on account of curtailment of operations. Battleships used only one-third total coal consumed and the remainder was used by cruisers, gunboats, and colliers.

Fuel oil. A comparison of the fuel oil consumption of 148 identical destroyers for October and November showed a 50 per cent reduction in oil consumed. The total estimated oil consumption has been reduced only 30 per cent, as the destroyers used approximately one-half of the fuel oil.

Gasoline-Reduction of 10 per cent from the average expenditures for the four months, July to October.

Fuel plants. Based on actual expenditures for July to October and allotments for November.

Charter hire.-Hire of tugs only included as an expenditure for November.

Shipping Board vessels. Title of these vessels transferred to Navy by Executive order dated October 29. Charter hire ceased as of that date.

Water. Based on requisitions submitted.

Ice. Based on requisitions submitted.

Miscellaneous. Based on approved requisitions and allotments.

Alaskan coal development.-Estimate based on very meager reports received to date.

STATEMENT B.

Fuel consumption for month of December, 1921, by classes of vessels.

STATEMENT C.

Cost of maintenance fuel depots and fueling plants at navy yards and stations chargeable to the appropriation "Fuel and transportation," month ending Dec. 31, 1921.

Miscellaneous expenditures under "Fuel and transportation" for month of December

1921-Rental of storage.

STATEMENT E.

Estimate of fuel consumption for period Jan. 1 to June 30, by classes of vessels.

To: The Navy Budget officer.

JANUARY 27, 1922.

Subject: Estimate of expenditures under appropriation "Fuel and transportation. 1922, for the period January 1 to June 30, 1922. References: (a) Letter Paymaster General to Chief of Naval Operations 104-28, etc., January 6, 1922. (b) Confidential letter Chief of Naval Operations to all bureaus, etc., on "Current operating force plan" P. D. 104-32:1, December 23, 1921. e Letter Chief of Naval Operations to commander in chief, Atlantic Fleet, Op. 38-K, 29049-104:1, September 8, 1921, "Restriction of expenditure in fuel.' (d) Letter Chief of Naval Operations to Chief of Bureau of Supplies and Accounts, Op. BA. 29370-8411, January 9, 1922.

1. Based on the information contained in reference (b) concerning the operating status of the vessels of the Navy, and the service to which they are to be assigned during the remainder of the fiscal year 1922, the following estimate of expenditures under the appropriation "Fuel and transportation, 1922," for the period January 1, 1922, to June 30, 1922, is submitted:

Coal, 278,228 tons..

Fuel oil, 4,171,930 barrels..

Motor gasoline, 1,939,000 gallons..

Maintenance coaling plants, bunker depots, and floating equipment..

Tug hire, water, ice, and miscellaneous..

Purchase, transportation, etc., of coal in Alaska..

Total.

$2,419, 411. 65

8,009,870, 06 465,360.00

496,957.86

420,700.00

500,000.00

12, 312 299. 52

2. The above estimate has been prepared by taking the consumption of fuel by vessels enumerated in reference (b) operating on a basis of three days out of 30 cruising at moderate speed, remaining at anchor the remainder of the time for active vessels, and reserve vessels at 1 day out of every 30 cruising at moderate speed, remaining at anchor the balance, moderate speed being interpreted as 12 knots per hour for all vessels except destroyers, 15 knots being considered moderate speed for destroyers. The use of this formula is suggested in reference (d) for the months of January and February, 1922. The months of March, April, May, and June are based on operation under the restrictions placed on all vessels in reference (c) and as per standard fuel consumption for certain classes of vessels contained in "Confidential Supplements to Rules for Engineering Performances, 1921-22."

3. The list of vessels, divided into classes and zones of operation with expected fuel consumption taken from reports submitted by the vessels to the Chief of Naval Operations, and from "Confidential Supplements to Rules for Engineering Performances, 1921-22," is attached hereto.

4. The unit price per barrel for fuel oil is the present market price at the various points east and west coasts where deliveries will be made with differential added thereto to cover additional cost for forms of delivery other than bulk, and points not shown, and has been arrived at as per detailed statement attached hereto.

5. The unit price per ton of coal is the present market price at mines with transportation by rail and water added thereto to points of consumption, as per attached

statement.

6. The unit price of $0.24 per gallon for motor gasoline for motor boats and miscellaneous purposes, is based on the various forms of delivery required, such as f. o. b. Naval vessels at tanks of oil suppliers; in supplier's barges f. a. s. naval vessels; in tank cars; in tank wagons; in drums; and a limited quantity in cans and cases. is based on prices being paid at present, and which range from $0.1575 to $0.27 on the east coast and $0.25 to $0.30 on the west coast.

It

7. Maintenance of coaling plants, bunker depots, etc., totaling $496,957.86, is made up of the following items:

Labor.

Material.

Total....

$279, 073.98

217, 883. 88

496, 957.86

This item of maintenance may be segregated under various classifications such as labor necessary for the handling of fuel and upkeep of plants, consumable supplies required in operation, spare parts and replacements of material and overhaul incident to care and preservation. There is given below a list of the items which go to make up the cost of maintenance.

Labor-such as quartermen, leading men, blacksmiths, boiler makers, carpenters, cranemen, coal handlers, electricians, engineers, firemen, gear tenders, laborers, machinists, riggers, ship smiths, stevedores, storemen, towermen, watchmen.

Material coal and water for yard craft, oil waste, grease, cable dressings, boiler compounds, blacksmith coal, harden compound, charcoal, coke, bolts and nuts, sheet metal, light and lantern globes, bunker lamps, etc.

Spare parts and replacements-tower parts, motor and crane parts, boiler and engine spare, grate bars, steam launch, gas engine parts and electrical motor parts, generator parts. spare armature, spare field coils, piping for fire and steam mains and sewer piping, wire hoisting cables, trolley wires, etc.

Overhaul-paint, paint oils, varnishes, special grease, special engine packing, hammers, bars, chisels, wrenches, files, etc.

8. The item of $420,700 for tug hire, water, ice, etc., is arrived at as follows:

Tug hire.......

$96,000

This item provides for shifting of fuel barges between anchorages, loading piers, and vessels at times and places where naval tugs are not available for such duty. Water, 625,000 tons, at $0.30 per ton....

$187, 500

The estimate covering water is based on requisitions submitted by various yards and stations. This water is required by vessels without proper facilities for evaporating water required for drinking, boiler-feed, cooking, and general use.

Ice, 1,667 tons, at $12 per ton......

$20,000

Ice is required for cooling drinking water on vessels not equipped with ice-making machines or plants, particularly in case of smaller vessels operating in southern waters.

Miscellaneous....

... $117.200 This item covers demurrage of vessels chartered for transportation of fuel. which, through circumstances beyond control, are not discharged within the time limit specified in charter parties. It also covers fuel consumed at receiving ship barracks and at fuel oil schools, fuel oil hose and rental of fuel oil storage tanks located at Sewalls Point, Va., Constantinople, Turkey, and the Panama Canal.

9. The naval transport service is shown separately, as operations of vessels in this service can not be based on a given formula of cruising and port consumption, and must be calculated on actual mileage to be steamed and actual days in port. Information which has been used as a basis for these estimates as to expected cruising activities of vessels in the naval transport service was furnished by the Chief of Naval Operations. Summary of coal, fuel oil, and gasoline_requirements for the various fleets, period Jan. 1 to June 30, 1922.

The unit price for fuel oil, east coast and west coast, used in the estimate for "Fuel and transportation, 1922," second half, period January 1, 1922, to June 30, 1922, was arrived at as follows: