The unit price for coal to various fleets was arrived at by taking the price at mines in West Virginia at $2.24 per ton, adding thereto rail transportation to Hampton Roads, Va., at $2.80 per ton and average water transportation from Hampton Roads, Va., to Portsmouth, N. H.; Boston, Mass.; Melville, R. I.; Key West, Fla.; Guantanamo, Cuba, and Canal Zone at $2.54 per ton; also a certain quantity to be purchased at Pennsylvania mines at about $3.57 per ton and adding thereto rail transportation to New York, N. Y.; Philadelphia, Pa.; Hingham, Mass.; Annapolis, Md.; and Charleston, S. C.; at an average cost of $3.51 per ton. Water transportation is also included from Hampton Roads, Va., to San Diego, Tiburon, Calif.; Puget Sound; and Pearl Harbor, Hawaii, at an average cost of $7 per ton. Triming charges of $0.25 per ton have been added where such charges occur. A. From: Secretary of the Navy. To: Commander in Chief, Atlantic Fleet. Commander in Chief, Pacific Fleet. Commander in Chief, Asiatic Fleet. Commander United States Naval Forces, Europe. Commandants all naval districts. Commandants all naval stations. AUGUST 8, 1921. Superintendent, United States Naval Academy. Commanders submarine bases. Commander Submarine Flotilla 3. Vessels of the Naval Transportation Service. Subject: Reduction in fuel expenditures. 1. The appropriation for fuel and transportation for the fiscal year 1921 amounted $10,000,000. A deficit was incurred under this appropriation amounting to $20,230,718. The total expended under fuel and transportation for the fiscal year 1921 under the appropriation "Fuel and transportation" amounted to $30,230,718. 2. The revised estimates for fuel and transportation for the fiscal year 1922 amounted to $30,703,138. The appropriation for the fiscal year 1922 amounts to $17,500,000. The Bureau of Supplies and Accounts estimates that the expenditure of this sum must be divided as follows: Fuel oil and Diesel oil.. Gasoline.. Coal... Care and upkeep of coaling plants, floating equipment, and power plants Tug and vessel hire, water, ice, and miscellaneous. Total...... $8, 300, 000 923,000 2,050,000 1, 150, 000 4, 227, 000 850,000 17, 500, 000 3. There was issued from naval fuel oil storages and Navy tankers to the ships during June, 1921, 452,196 barrels. At an average price of $2.60 per barrel, this expenditure amounts to $1,253,709.60, or 14 per cent of the total money available for fuel oil alone. At this rate of expenditure the cost of fuel oil for the year would amount to $15,044,515.20, leaving only $2,455,484.80 of the appropriation for other purposes. 4. The figures for fuel oil expenditures only are given, as the urgency for immediate action will not permit the development of expenditures for other purposes. 5. Although in previous years a deficit under the appropriation “Fuel and transportation" has been from time to time incurred, the present administration has made it unmistakably clear that the executive departments of the Government must make every endeavor to keep within the sums appropriated by Congress. 6. In view of the above it is directed that fuel expenditures for all purposes be limited to the absolute minimum necessary to carry on urgent military operations. THEODORE ROOSEVELT, Acting. B. SEPTEMBER 8, 1921. From: Chief of Naval Operations. To: Commander in chief, United States Atlantic Fleet. First indorsement 622–3:5, of August 1. In reference (a) the Commander in chief, Atlantic Fleet, disapproved the suggestions of the commander, destroyer, force, Atlantic Fleet, that the department assign a fuel allowance to the various forces of the fleet for the remainder of the fiscal year.. 2. The attitude of the commander in chief in this regard is understood, as such an allowance will be a serious restriction to the operations of the fleet. 3. However, the condition of the appropriation for fuel and transportation, 1922, and the policy of economy in all Government expenditures make it imperative that steps along the line of a fuel allowance for forces be taken and put into effect at once. 4. The proposed cruise and maneuvers of the fleet during the winter months will involve large fuel expenditures, if any value is to be received from them. It is therefore necessary that fuel be conserved to the maximum by the fleets before and after the cruise and by other forces of the Navy during the remainder of the fiscal year. 5. A method of restricting the operation of vessels and forces of the Navy has been prepared, which is considered the most liberal that can be permitted under the cir cumstances. 6. It is proposed to place these restrictions in effect immediately for all forces of the Navy. During the months of January, February, March, and April, 1922, the provisions of the allowance will be waived for vessels of the Atlantic and Pacific Fleets as may be necessary to carry on the necessary maneuvers. The strictest economy during this period, however, will be required. 7. The restrictions in operation are based on operations for military purposes for certain vessels and on a fuel allowance for the forces of the fleets. Class I.-The following classes of vessels to be restricted in operation to making urgent passages from port to port at economical speed to meet military requirements Special service squadron. Vessels in European waters. Asiatic Fleet, except destroyers and mine forces. Naval transportation service. Flagships and tenders of destroyers, submarines. Air and mine forces. Vessels of the train. District vessels. Tenders and station ships for naval stations. Vessels on detached service. Class II.-The battleship, destroyer, and mine forces of the fleets to be restricted in operations to such as can be carried on under an allowance of fuel at the disposition of the force commanders. The following methods of computing the allowance for the forces is suggested: (a) Battleship forces. Monthly allowance equals the sum of the allowance of each battleship of the force in full commission as determined by the following formula: 120a +600b. a=Standard gallons (or tons) per hour under way at 12 knots taken from "Confidential Supplement to the Rules for Engineering Performances 1921-22." b=Standard gallons (or tons) per hour at anchor from "Confidential Supplement to the Rules for Engineering Performances 1921-22." (b) Destroyer forces: Monthly allowance of operative squadron the sum of the allowance of each destroyer of the operative squadron as determined by the following formula: 120a + 600b a=Standard gallons per hour under way at 15 knots taken from "Confidential Supplement to the Rules for Engineering Performances 1921-22." b=Standard gallons per hour at anchor taken from "Confidential Supplement to the Rules for Engineering Performances 1921-22." = the Monthly allowance for destroyers operating with 50 per cent complements sum of the allowance of each destroyer of the force as determined by the following formula: 24a+696b and b same as for operative squadron. = the sum of the allow (c) Mine forces: Monthly allowance for light mine layers ance of each light mine layer in full commission as determined by the following formula: 120a + 600b the sum of the a and b same as for operative destroyers. Monthly allowance for light mine layers in reduced commission allowance of each light mine layer as determined by the following formula: 24a + 696b a and b same as for operative destroyers. Monthly allowance for mine sweepers in full commission: = the sum of the allowance of each sweeper of the force in full commission as determined by the following formula: a=100 gallons. b= 40 gallons. 150a + 600b Monthly allowance of mine sweepers in reduced commission the sum of the allowance of each sweeper of the force in reduced commission as determined by the following formula: a=100 gallons. b= 40 gallons. 24a + 696b NOTE. 40 gallons is the average expenditure per hour at anchor and 100 gallons is the average expenditure per hour under way at 10 knots for third-class mine sweepers. Class III.-Submarine forces to be restricted in operation to such as can be carried on under an allowance of fuel at the disposition of the submarine flotilla commanders. The allowance per month of each submarine flotilla equals the number of submarines in the flotilla multiplied by 3,300 gallons. NOTE.-3,300 gallons is the average expenditure per submarine of all classes. Class IV. Each force commander to have available to use at his discretion in addition to the above allowance, a quantity of fuel per month equal to the mean bunker capacity of the ships of his force. 8. Expenditures in addition to the allowance will be authorized by the Chief of Naval Operations only on the recommendation of the commanders in chief. 9. The comment of the commander in chief is requested regarding the proposed restrictions and allowances and their effect on the efficiency, upkeep, and morale of the fleet. Copy to: Commander in Chief, Pacific Fleet. Bureau of Supplies and Accounts. Operations. Commander in Chief, Asiatic Fleet; ack. R. E. COONTZ. 3807: Reference Opnavs thirty-eight zero five dash ten twenty August: Restrict operation of vessels of Asiatic Fleet except destroyers and mine layers to urgent passages between ports to meet military requirements at economical speed period destroyer force to be limited to an allowance equal to the sum of the allowance of each destroyer based on one twenty hours underway at fifteen knots and six hundred hours at anchor per month period. The fuel per hour to be taken from engineering competition standards.-1630. Operations. Flag Utah; ack. Opnav. September 7, 1921. 19-38-Sanda. 3807: Reference Opnavs thirty-eight zero five dash ten thirty August. Restrict operation of all vessels in European forces to urgent passages between ports for military purposes at economical speed.-1645. From: Chief of Naval Operations. To: Commander in Chief United States Atlantic Fleet. DECEMBER 29, 1921. 1. In order to reduce to a minimum the consumption of fuel, it is directed that no full power trials under the rules for engineering performances be conducted by any vessel of the Atlantic Fleet pending further instructions. It is hoped that it will be practicable soon to remove this restriction, and the commander in chief will be informed immediately when such décision can be reached. W. C. COLE, Acting. NOTE. Similar instructions were sent to the Pacific Fleet, the Asiatic, and to vessels in European waters. CLOTHING AND SMALL STORES FUND. The CHAIRMAN. There is another matter concerning which you may care to say something, about the $40,000,000 adjustment between the Treasury and the Bureau of Supplies and Accounts. Secretary DENBY. It was the Bureau of Supplies and Accounts, the issuance of small stores. We had a revolving fund. The CHAIRMAN. Were you considering making that adjustment merely as a bookkeeping matter? Secretary DENBY. I would not consider that a proper charge against the naval deficiency, since it originated in the Treasury and was due to the Treasury policy. I think it is fairly well understood as not being a deficiency, but a bookkeeping matter. Mr. KELLEY. It is not regarded to be used during the next year, but in the future? Secretary DENBY. Yes, sir. The CHAIRMAN. It would not be classed as a deficiency, simply a question of clearing up the record? Secretary DENBY. That is all. Mr. KELLEY. I assume you have enough clothing to last 10 or 15 years? Secretary DENBY. I can not tell you how long. Probably as we can sell it we will reduce the inventory to $150,000,000 from $200,000,000, the war figure, but it will not turn into the Treasury $100,000,000. Mr. KELLEY. It is the same as using cash, but you do not need the cash? Secretary DENBY. We try to convert all we can into cash and try to get the money into the Treasury. Mr. KELLEY. This accumulation of goods in the stores was due to the precaution of the department to get all the supplies that might be needed for a long war? Secretary Denby. Yes, sir. The CHAIRMAN. And probably would not have been accumulated if it had not been for the war? FUEL. Mr. KELLEY. Just a word, Mr. Secretary, about the $10,000,000 for fuel; that is for the period beginning March 1. Secretary DENBY. On January 1 we had a balance of $1,600,000. Mr. KELLEY. How long would that last? Secretary DENBY. I can not tell you exactly, it depends on the activities of the vessels and the fleet's ashore activities. Mr. KELLEY. What is the balance on hand right now for fuel? Admiral CooNTZ. On the 1st day of January, it was $1,600,000 and something. For December the expenditure was estimated at $1,851,510.43. At that rate it would be gone by the end of January, but we are reducing all the time, and my judgment is that it was spent early in February. The returns regarding fuel come in at the end of each month. The CHAIRMAN. You have not received the January returns? Admiral COONTZ. No, sir; but we have a new system for fuel and other things, getting the reports by radio as quickly as we can or by mail on the first of the month. I should say that the money is all gone at that rate. Mr. KELLEY. If your request was for $30,000,000, that would be $2,500,000 a month. Secretary DENBY. The original plan was brought down to $30,000,000. Mr. KELLEY. That is $2,500,000 a month. You actually are not figuring on slowing up very much the next four or five months? Secretary DENBY. We are figuring on slowing up as much as we can. Admiral COONTZ. We had $1,600,000. If we had spent as much in January as in December it would have been gone by the 1st of February. It is by using the minimum that has brought us over into February. Mr. KELLEY. That would be $2,000,000 a month. You are notslowing up very much? Admiral COONTZ. In the first half year we consumed about $15,896,820.93, the last half of this fiscal year we estimate $12,312,299.52. That averaged the first six months $2,649,470 per month, and the last six months $2,053,717 per month, a difference of about $600,000 per month. Mr. MADDEN. That would be $2,300,000 a month. Secretary DENBY. If we had about $10,000,000, it would be $28,000,000 for the year. I am perfectly frank to say that this whole matter is dependent upon the action of Congress, and it would seem. to me The CHAIRMAN (interposing). If the Navy's activities should be materially reduced for 1923 and it was clearly understood within a |