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The CHAIRMAN. Please state why.

Capt. BRYANT. The original amount that we estimated, as a result of the first quarter of this year, that we would need for approved requisitions was three hundred and nineteen thousand five hundred and thirty-five dollars and some odd cents. Since that time, as a result of cutting down requisitions and whatever additional requisitions we have been able to get in in the succeeding quarter we have been able to reduce the amount of that item of $319,535 to $302,000.

The CHAIRMAN. It is $359,000.

Capt. Bryant. Yes. That was the total originally requested, but that has now been reduced to $322,000. There is $17,326.98, which was put in our estimate as additional for expenditures incurred during the first quarter as the result of the bill not being passed until the 11th day of July. We have been able to absorb all of that except $5,000. There is a reduction in this item of $12,000.

The CHAIRMAN. Between the 1st and 12th of July you went on and expended the funds of the former appropriation rather than on what the prospective appropriation would be?

Capt. Bryant. As soon as the bill was passed cuts were ordered, but a certain amount of time was required to effect the economies necessary to meet the conditions imposed by the passage of the bill.

TELEPHONE AND TELEGRAPH RENTALS AND TOLLS.

19181

[Extract from Secretary of the Navy's letter to the Director of the Bureau of the Budget,

of Dec. 17, 1921.) No additional appropriation of funds is involved, this being simply a request for an increase in limitation.

The naval appropriation act for the fiscal year 1922, under the appropriation “ Pay, miscellaneous," limited the amount that can be expended for telephone rentals and tolls, telegrams, and cablegrams to $250,000. For previous years the expenditures under this heading have been as follows: $903, 790. 81 1920

$1, 002, 079. 56 19191

1921.

554, 323. 85 The original estimate submitted for 1922 by the Director of Naval Communications was $470,000. This was reduced to $400,000 by the Secretary of the Navy. but was further cut to $250,000 by Congress, as above stated. Every effort has been made to bring expenditures within the $250,000 allowed. Im mediately upon passage of the naval bill, early in July, cuts were made so as to bring the service down to what is really an emergency basis, and stringent orders were issued to reduce dispatch work to the absolute minimum.

It. niust be remembered that under this item are included every telephone plant, including switchboard, trunk lines, and telephones ; every telephone call made, both local and long distance; and every telegram and cable sent for the entire naval service, afloat and ashore. At present the Navy is operating under this item at a yearly rate of $319,535.37, as indicated by approvedl or pending requisitions. However, due to the fact that the naval appropriation act was not passed until July 12, it was impossible to make effective immediately all of the drastic reductions ordered, and considerable unavoidable expenditures resulted during the first quarter of the fiscal year. Furthermore, on account of the drastic nature of the cuts made, in some cases it will not be possible to keep within the allowed amount, although the most stringent orders have been issued and the best effort is being put forward.

As previously stated, the amounts now allowed represent emergency service and, in a number of instances, noneconomical service, because the amounts saved in telephone and telegraph allowance result in expenditures in other appropria

1 The 1919 appropriation was made available for paying 1918 bills and, therefore, a large amount properly chargeable under 1918 is included under 1919.

tions far in excess of the savings effected under " Pay, miscellaneous." The present status of this subhead of “ Pay, miscellaneous” is estimated to be as follows: Obligated on approved requisitions.

$319, 535. 37 Additional for expenditures incurred during first quarter over approved requisitions

17, 326. 98 To restore efficient service where too drastic cuts have already been made

22, 420. 80

Total

359, 283. 15 No further reductions can be made in expenditures for the present year without actually crippling naral activities and without an actual loss to the Government under other appropriations.

In view of the foregoing facts, I request that the limit of $250,000 be raised to $359,000. The Navy Department will endeavor by curtailment to save the additional $109,000 required under this subhead from the other subheads of the appropriation Pay, miscellaneous."

[Memorandum for Secretary of the Navy.) Subject: Present status of prospective deficiency “ Pay, miscellaneous, 1922,"

subhead 10.

1. As of to-day, the best estimate of the status of “ Pay, miscellaneous, 1922,” subhead 10, is as follows:

[blocks in formation]

Approved requisitions......
Additional for expenditures incurred during first quarter over approved

requisitions.
To restore efficient service where too drastic cuts have already been made.

Total.....

$302, 263. 47

5,000.00 15,000.00 322, 263.47

17,326.98 22, 420.80

359, 283. 15

2. This saving has been made by continual pressure in regard to reduction in expenses and is specifically due to the following items:

First. General cut in despatch work throughout Navy.

Second. Reduction of wire traffic by maximum use of radio, and dispatch mail system.

Third. Telephone plant cuts:
(a) All navy yards.
(b) Inspectors.
(c) Recruiting stations.
(d) Naval station, New Orleans.
(e) Naval Station, Key West.
(f) Naval Training Station, Great Lakes.

Fourth. Reduction of estimate for additional expenditures incurred during first quarter.

Fifth. Cancellation of combined fleet cruise to Canal Zone.
Sixth. General reduction of cruising of ships.

3. The original estimate was based on figures for the first quarter. The present estimate is more accurate, being based on figures for first and second quarter combined.

Mr. Sisson. You want $302,000 ?

Capt. BRYANT. $322,000. There is another item of $15,000 asked for to restore efficient service where the cuts were drastic and have made the service uneconomical to the administration of the Government. I request to file herewith a letter of the Secretary of the Navy to the Director of the Budget.

The CHAIRMAN. In other words, with the $250,000 now authorized you want authority to expend $322,000 out of the appropriation that exists?

Capt. BRYANT. Yes, sir.

The CHAIRMAN. Why do you not economize in this activity? There is no reason why there should be such an extravagance in it.

Capt. BRYANT. This is the closest estimate that we can make; we have been economizing.

Commander NoYes. We have economized from 1919, $2,000,000.
The CHAIRMAN. That was during the war?
Commander Noyes. Yes, sir; and $1,554,000 the next year.

Mr. KELLEY. Please tell us how this is divided, how much long distance telephoning ?

Commander NoYES. $140,949.02 for telephone rentals. That includes all naval stations.

Mr. KELLEY. And includes leased wires!
Commander NoYes. Yes, sir.
Mr. KELLEY. How many leased lines have you?

Commander Noyes. One telegraph wire from Norfolk to Washington, one from Washington to Boston; one telephone wire Washington to New York, and one from Washington to Norfolk.

Mr. KELLEY. Is that necessary now?
Commander NoYes. Yes, sir.
Mr. KELLEY. Why can not you give up the leased lines?

Commander NoYES. With the present amount of business it is cheaper to lease the wire than to pay the tolls. .

Mr. Sisson. Can not you use the mails more?
Commander Noyes. We use them as much as we can.

Mr. Sisson. During the war Congress rather took the bridle off of the use of cablegrams and telegraph wires. There has grown up within the departments, not only the Navy Department, but all of the departments, a desire to use telegrams and telephones. I doubt whether the Navy Department has been entirely exempt from that habit. What is your telegraph bill?

Commander Noyes. $100,325.55.
Mr. KELLEY, And how much for cables?
Commander Noyes. That includes the cables.
Mr. Sisson. You get the Government rate?
Commander Noyes. It has

been increased about 50 per cent. Mr. Sisson. What is the Government rate?

Commander NoYES. It used to be 1 cent a word east of the Mississippi. Now we pay 40 per cent of the commercial rates. The CHAIRMAN. What are the commercial rates per word ?

Commander Noyes. That all depends on the destination. It used to be that the Government got a flat rate of 1 cent a word this side of the Mississippi; but now we have to pay according to the distance.

Mr. Sisson. What was your bill in 1916 for this prior to the war? Mr. REED. About $100,000.

Mr. KELLEY. How much do you use the wireless now; you did not have the wireless then?

Commander Noyes. It is rather difficult to figure what the exact value of it is. We have estimated that the total cost for the last fiscal year would have been $5,000,000 if rented at commercial rates.

Mr. KELLEY. You are using $5,000,000 of wireless?
Commander NoYes. All over the world.
Mr. KELLEY. The Navy?

Commander Noyes. No, sir; for the entire Government. We have not known how much of that was used for other departments of the

Government. We furnish free service to all departments of the
Government. I think about 40 per cent.

Mr. KELLEY. For the Navy?
Capt. Bryant. For the other departments.

Mr. KELLEY. And $3,000,000 for the Navy. In 1916 you did not have any wireless at all?

Commander Noyes. Yes, sir; we did.

Mr. KELLEY. How much did you have in 1916 ? You could not have had much wireless six years ago.

Commander Noyes. We have increased the power of the stations, but in 1916 we had smaller stations at the principal points where we have stations now.

Capt. BRYANT. I was here in 1916. We have practically the same coast stations that we had in 1916. There may be a few more, but only about three more high-powered stations.

Mr. KELLEY. That is contrary to my recollection, and I would like to hear from Admiral Taylor.

Admiral ROBISON. We used wireless in 1916. But now you may use the radio to send a message from Washington anywhere; in 1916 you could not do that.

Mr. KELLEY. That is the way I had it in mind.

Admiral ROBISON. I would like to make one exception. There are certain areas of the Indian Ocean that are not covered except under very favorable circumstances. Apart from certain areas of the Indian Ocean there is no place that you can not reach by naval radio.

Mr. KELLEY. Those were constructed during the war?

Admiral Robison. I think those improvements were furnished during the war, furnished by other people in many respects. We are trying to keep that which is the key to it, to transmit communications from the Navy Department to the Navy.

Mr. KELLEY. Do you use wireless for communication from navy yard to navy yard?

Admiral Robison. We transmit our messages from the east to the west coast by radio. We transmit almost all of our messages from the department to the various naval stations by radio and to the ships. It is for that reason that our present telegraph and cable tolls are less than they were in 1916.

Mr. Sisson. Are they less?
Admiral Robison. I believe they are quite materially less.

Mr. Sisson. Do you know what they were prior to the breaking out of the European war?

Admiral Robison. I have not those figures. I do not have them, and they are not in my bureau.

Commander Noyes. It has only been since last year that this has been carried as a separate subhead of “Pay, miscellaneous.” That is the real reason why the figures are not available. We have the figures available since it has been made a subhead. Mr. Sisson. There is no way, then, of telling what it did cost?

Commander Noyes. Not that know of, unless supplies and accounts could give an analysis of it.

The CHAIRMAN. Is there some way by which you can give us for the record the amount expended annually, or, say, the amount expended this year and last year, for radio messages chargeable to the

91019-22 -28

Navy, for telegraph service chargeable to the Navy, and telephone service chargeable to the Navy, separately?

Commander Noyes. Yes, sir; I think we can give them separately. The CHAIRMAN. Will you put that statement in the record ?

Fiscal year 1922.-Pay, miscellaneous, subhead No. 10.

This includes payments for all expenditures under the cognizance of the Navy Department for telephone and telegraph service, such as telephone plant, local calls, long-distance calls, and telegraph tolls at 282 naval activities. Requisitioned for-

$384, 852. 31 Approved for: TelephoneRentals.

$140, 949. 02 Local calls

38, 383. 62 Long-distance calls

22, 605. 28 Telegraph.

100, 325. 55

Total approved.
Additional for expenditures during first quarter.
To restore efficient service where too drastic cuts have already

been made

302, 263. 47

5,000.00

15, 000.00

Total.-

322, 263. 47 Previous expenditures : Fiscal year1918_

$903, 790. 81 1919

2, 439, 115. 30 1920

1, 002. 079. 56 1921

554, 323. 85 1922 (original estimate)

470,000.00 Commander Noyes. I have not that detailed data for last year. This is the first year that this appropriation has been assigned to the Director of Naval Communications. Previously the data was not kept separately.

The CHAIRMAN. Have you any record of it that is rather complete up to the present time, or, say, for the past six months ? Commander Noyes. Yes, sir; we know what we are doing now.

The CHAIRMAN. For how long back can you furnish that information?

Commander Noyes. We know what the maximum is. These fig. ures that we have given you are the totals of our approved requisitions for the year, which no one is allowed to exceed, by administrative orders.

Mr. KELLEY. For how long have we a lease on these wires?

Commander Noyes. It is an annual rental, and it can be discontinued on 10 days' notice.

The CHAIRMAN. Do you think they can possibly.get along without this, or without increasing the telephone bill?

Commander Noyes. No, sir; it has been very carefully considered continuously to determine whether we are saving money by leasing the wires instead of paying tolls.

Mr. KELLEY. I suppose there would be a freer use of leased wires where you are paying so much annual rental, and that they would talk more over such lines than if they were paying tolls.

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