men, 2,060,000, you are asking $279,000,000 for a year. That is $79, 000,000 in excess. Capt. DALY. There is a difference in the ration. The CHAIRMAN. How much? Capt. DALY. About 4 or 5 cents. The estimate you have there was based on 35 cents. The CHAIRMAN. What is the basis of the ration now? Capt. DALY. Thirty-eight cents. The CHAIRMAN. That would not account for the $79,000,000. The CHAIRMAN. Take the $50,000,000 out. Is this for any other purpose except the ration? Capt. DALY. The commutation of rations. The CHAIRMAN. Take everything included in this appropriation on the basis of 1.079,000 men, you are asking $201,500,000. Capt. DALY. We have added $100,000,000 for six months' reserve. The CHAIRMAN. Please explain how you reached these figures? Capt. DALY. We took 50 per cent of the total ration that we had in the bill, which amounts to $199,780,000-50 per cent of that-and added $100,000,000 to include the six months' reserve-added it to the total. The CHAIRMAN. This is not an estimate to subsist 2,000,000 men for a year? Capt. DALY. It estimates to subsist practically a million men for a year and a half. The CHAIRMAN. What is contemplated is to accumulate a six months' supply? sea. Capt. DALY. To replace the loss that may occur going over the The CHAIRMAN. That is what you are doing estimating for a six months' reserve for a million men. That would give you $179,000,000 $50,000,000 to make up the $50,000,000 in your first estimate and $100,000,000 for the reserves. What is the other $179,000,000? Capt. DALY. We provide here for $189,906,068.25 for rations for enlisted men. The CHAIRMAN. You have received out of that $151,000,000 already. What is that money for. Capt. DALY. The ration was for the difference between 1,072,000 men which you appropriated for first and the 2,033,000 men. The CHAIRMAN. Your estimate includes the money already appropriated for subsisting 2,000,000 men for a year? Capt. DALY. The total requirements for 2,000,000 men would be $229,672,216.68 plus $183,000,000, making $412,000,000. The CHAIRMAN. What is the other $50,000,000 for? You already have $151,000,000? Capt. DALY. Yes, sir. The CHAIRMAN. You are asking for $339,000,000 more? Capt. DALY. On the face of it, it looks like there might be an error that we would have to go into and correct. Apparently there is an error. 4400-17-26 Mr. BYRNS. General, I have heard it stated, although I do not place much credence in it, that civilians in the department have been commissioned and assigned to active duty in the department? Gen. SHARPE. No, sir. There have been a number of civilian clerks who have passed the examination and have qualified as officers of the Reserve Corps. They have been appointed and commissioned, but not assigned to duty in Washington. Mr. BYRNS. They have stood the examination required of all other civilians? Gen. SHARPE. Yes, sir; they went before the board. The CHAIRMAN. And when commissioned they were not assigned. to the same work they were doing? Gen. SHARPE. No, sir; they were assigned to duty outside of Washington. TUESDAY, JULY 31, 1917. SUBSISTENCE OF THE ARMY. (See p. 400.) Gen. SHARPE. Mr. Chairman, yesterday you wanted us to prepare some figures explaining the apparent discrepancy which we found on going over these matters. With one exception the figures are right, as estimated, and Capt. Daly will give you the correct figures. Capt. DALY. When the estimates were sent in they were originally for $201,000,000 for subsistence, and they were informally sent back to have the amount included in the Army appropriation act, which was then pending, deducted. That left the estimate $183,000,000, $18,000,000 being in the Army bill. Of the $183,000,000, $133,000,000 was appropriated. Now, this present estimate is for $329,672,218.15. In checking this back we find there is an error in computation of $1,679,716.42. The correct figure is $327,922,501.73. The estimate was made up as follows: Ratiors, based on 960,437 men, the difference between 1,072,908 men and 2,033,345 men. The CHAIRMAN. What did you do with the balance of one million six hundred and odd thousand men? Capt. DALY. Our previous estimate was based on 1.072.908 men, and the total strength given in this estimate is 2,033,345 men. Deducting the amount that was provided for in the last estimate of 1,072,908 men from 2,033,345 men, leaves 960,437 men, and upon that number of men this present estimate is based. The rations for the troops are based on 40 cents in this estimate, as against 35 cents in the last estimate. We find that the average cost of the rations for the first six months of the year was 38 cents. We have not complete figures available to compute that cost for the last six months of the fiscal year which ended June 30, and we arbitrarily assume 40 cents, or an increase of 2 cents, because of the constant increase in the prices of the components of the ration. That gives us for rations for the troops $140,224,002; rations for civilian employees, $848,844. That is based on an estimated number of 5,814 employees who will be required for various activities with the additional troops in this country, and perhaps abroad, and on transports. We figure on 200 additional hospital matrons, $29,200. For prisoners of war we have an arbitrary estimate of 100,000 men for one year, and in order to procure rations for prisoners of war we estimate $12,775,000. Meals for recruiting parties, applicants for enlistments, etc., $5,496,626.25. That is figured at 90 cents a day. The CHAIRMAN. How much was included in the estimates upon which the appropriation was previously made for that? Capt. DALY. $6,230,550. The CHAIRMAN. And what was included for prisoners of war? The CHAIRMAN. How many are we subsisting? Capt. DALY. About 4,000 now. The CHAIRMAN. You are providing for 300,000 for a year? Capt. DALY. Practically. It is, of course, anticipating the capture of a certain portion of the enemy. The next item is commutation in lieu of rations to enlisted men on furlough, nurses in hospitals, sick in hospitals, and prisoners in hospitals, $9,659,538. The next item is expenses of handling, testing, storing, etc., of subsistence supplies, $1,959,291.48. That covers the purchase of paper bags, procurement of storage material, testing of supplies, and it is based on a per capita of $2.04 per man per year. That has been the previous cost under normal conditions. That gives us a total of $170,992,501.73 for subsistence, based on 960,437 men. Now, we have added to that $50,000,000, the amount by which the previous estimate was reduced, and we have also added $100,000,000 to provide for a reserve supply, which gives a total of $320,992,501.73. The CHAIRMAN. I understood you to say yesterday that you were providing for one-half year's reserve supply for 1,000,000 men, and that would be about $70,000,000. Capt. DALY. No; we took one-half of $170,000,000 plus $50,000,000 which was deducted, which makes $220,000,000. The CHAIRMAN. $201,000,000 is the estimate for a year's supply, is it not? Capt. DALY. This estimate is $170,992.501.73. That is the estimate proper. Now adding to that $50,000,000 not appropriated in the other estimate, makes $220,000,000, and half of that would be $110.000.000. The CHAIRMAN. But you have in here a lot of things that are not rations at all. Capt. DALY. That is true. The CHAIRMAN. Your estimate for these 900,000 men was $140,000,000. That is about $20,000,000 more than your previous estimate would have been. Capt. DALY. The total amount of rations involved is $153,877,046. The CHAIRMAN. For what? Capt. DALY. For rations for the troops, $140,224,002, for civilian employees $848,844; for matrons, $29,200; for prisoners of war, $12,775,000. The CHAIRMAN. That is not subsistence for your army of 1,000,000 men? Capt. DALY. But it is subsistence for prisoners of war. The CHAIRMAN. But it is not subsistence for an army of 1,000,000 men. Capt. DALY. But we stand just as good a chance to lose supplies sent over for prisoners as supplies sent over for the men. The CHAIRMAN. But that is just an arbitrary amount. When you asked for an appropriation for subsistence for 1,000,000 men, you figured that they were going to have 200,000 prisoners, and now you figure that this million men is only going to have 100,000 prisoners. You can put in any arbitrary figure you please for subsistence of prisoners. Of course, if these million men do not leave this country they will have no prisoners to subsist. We are not going to capture any German soldiers over here. Capt. DALY. No. The CHAIRMAN. So those arbitrary figures do not enter into the computation. Capt. DALY. Deducting those, that leaves $64,163,523. The CHAIRMAN. Where do the others come in? Capt. DALY. That is half of it. That would make the reserve, then, $70,551,023. The CHAIRMAN. Now, you say these figures are based on 40 cents for rations? Capt. DALY. Yes, sir. The CHAIRMAN. I understood you to say yesterday it was based on 38 cents for rations. Capt. DALY. I intended to say that the cost of the ration was 38 cents. The explanation is just as I gave it this morning. The cost computed for the six months ending December 31 was 38 cents. We have not been able to get sufficient data to give us the accurate cost for the six months ending June 30, for the reason that all the papers are not vet in. The CHAIRMAN. Have you made contracts for your rations for the year? Gen. SHARPE. The stores are bought from time to time. We do not make contracts for the year. The CHAIRMAN. Why not? Gen. SHARPE. Because we do not find it advantageous. The CHAIRMAN. It would surely be advantageous if these prices. are going up continuously. Gen. SHARPE. That never has been the policy of the department. The CHAIRMAN. I do not care what the policy has been. Here we are in a rising market, with no prospect of prices going down. Has no attempt been made to make contracts for a year's rations? Gen. SHARPE. We have an arrangement by which we are to get the supplies at greatly reduced prices. The CHAIRMAN. Nobody living in the United States is expecting to buy any foodstuffs at reduced prices. Gen. SHARPE. I do not believe we could make contracts for that period of time which would be advantageous. The CHAIRMAN. For how long a period do you make contracts? Gen. SHARPE. We buy the stores for about a three months' period. The CHAIRMAN. As a result of competitive bidding? Gen. SHARPE. Yes, sir. The CHAIRMAN. In all of these items of ration? Gen. SHARPE. It has been arranged that for all canned goods and things like that we are to get fixed prices from the packers all the way through. The CHAIRMAN. Who is to fix the price? Gen, SHARPE. It is to be fixed by the bureau in the Department of Commerce. They are to go over the matter and fix those prices. Capt. DALY. An annual contract under the present high prices would not be advantageous. The CHAIRMAN. It would be advantageous if you are figuring on paying 40 cents for next year where you paid 35 cents the last year. Gen. SHARPE. I suppose it would cost 50 cents under a yearly con tract. Capt. DALY. The man making the contract would be speculating, and he would have to protect himself and would probably take care of that feature. The CHAIRMAN. You do not show any advantage in these figures in buying for three months when the price has increased 14 per cent in a few months. Capt. DALY. They are much lower figures than the public at large is paying. The CHAIRMAN. I do not know. I do not know what the public pays for the stuff it gets. Capt. DALY. We get the very best stuff. The CHAIRMAN. But the price of the ration does not indicate whether the public is paying more or less. Of course, you ought to pay less, because you are buying in bulk. Capt. DALY. We are paying less for beef than the public pays for it, and also bacon. The CHAIRMAN. You should pay less, because you are buying it in great quantities. Capt. DALY. And there is no doubt but what we are buying a higher grade of beef and bacon and other articles than the public in general. The CHAIRMAN. Now, with reference to these figures given for the subsistence of prisoners of war, is that for prisoners of war captured by our own troops? Does it contemplate subsisting prisoners that have been taken by any of the allies? Capt. DALY. No, sir. The CHAIRMAN. $5,496,000, you say, is for subsistence of recruiting parties? Capt. DALY. Recruits and applicants for enlistment, at 90 cents a day. The CHAIRMAN. Is it expected that that will run as high as it is under existing conditions? Under the law now, where the men are being taken in under the draft system, can not a lot of that be eliminated? Capt. DALY. Well, voluntary enlistment and recruiting goes on just the same. The CHAIRMAN. That is true. Capt. DALY. And the activities are probably greater than they have ever been, and probably will be. The recruiting has jumped up materially, Mr. Fitzgerald. A year ago we had 90 recruiting stations and last June we had over 500. The CHAIRMAN. Will you state again what the $9,659,000 is for? Capt. DALY. That is for commutation of rations for enlisted men on furlough, for retired enlisted men when ordered to active duty, male and female nurses when stationed at places where rations in |