Capt. DALY. Yes, sir; two actually in existence and one proposed. Gen. SHARPE. Very large hospitals are to be established at these camps; everything that is necessary for them.

Capt. DALY. I find that this amount should be reduced to $6,000,000.

The CHAIRMAN. You provide $6,000,000 for refrigeration and ice for how many troops and for how long a period?

Gen. SHARPE. We estimate on putting up an ice plant of 500 tons a day and 5,000 tons of refrigeration, 5.000 tons of meat.

The CHAIRMAN. Is that at your supply depot at your point of embarkation in France?

Gen. SHARPE. Yes, sir.

The CHAIRMAN. Where you will have the supply depot?

Gen. SHARPE. Yes, sir.

The CHAIRMAN. Does this provide for refrigeration out in the field?

Gen. SHARPE. I think we will have to.

The CHAIRMAN. They have not that?

Gen. SHARPE. They have not asked for that. Gen. Pershing asked for this.

The CHAIRMAN. Do you know whether or not the other troops in the field have that?

Gen. SHARPE. I do not think they have. The French and the English do not depend so much on cold storage as we do, but I do know that the French and English are shipping large quantities of ice to their hospitals. They have had boxes made over in Brooklyn, made out of balsam wood, small boxes and larger boxes, in which they send the ice to the hospitals at the front.

The CHAIRMAN. I mean outside of the hospitals.

Gen. SHARPE. They do not. We have always given ice whenever we could.

The CHAIRMAN. I am asking what the custom is. This is to supply, if I understand correctly, at the point of debarkation a large refrigerating supply in connection with the supply depot?

Gen. SHARPE. Yes, sir.

The CHAIRMAN. That will be really your base?

Gen. SHARPE. Yes, sir.

The CHAIRMAN. And supplies taken over will be stored there?
Gen. SHARPE. Yes, sir.

The CHAIRMAN. Preparatory to use?

Gen. SHARPE. Yes, sir.

Mr. SHERLEY. Is this refrigeration plant only to be for the port of disembarkation, or are you planning to supply the troops at the front with ice and refrigeration?

Gen. SHARPE. We have not any call yet on that. This is on Gen. Pershing's call and is for the base.

Mr. SHERLEY. That is what I wanted to make clear. This does not contemplate anything more than the equipment for your base depot?

Gen. SHARPE. That is all. The beef is frozen and it can be shipped many miles when frozen stiff and it will be in good condition when it arrives. In fact, the meat will keep any ice put in the car, because the meat is frozen 12° below that at which the ice is made.

The CHAIRMAN. Is the other $6,000,000 to be used in the establishment of that plant, or is it for some other purpose?

Capt. MARSHALL. This plant will only give us 500 tons capacity and storage for 10,000,000 pounds of beef. It is understood that we will get another call.

The CHAIRMAN. What will this one plant to cost $6,000,000 supply? Capt. MARSHALL. It will not cost that much. This is in anticipation of a further call as soon as the troops get over there. We do not know what the ice plant will cost, but somewhere between $2,000,000 and $2,500,000 when completed. This is in anticipation of additional capacity, if needed. This capacity is only for 10,000,000 pounds, which is not very long storage.

The CHAIRMAN. Your request is for capacity of 10,000,000 pounds or 500 tons of ice a day. You are asking for money to enable you to duplicate that request?

Col. LITTELL. To put in another plant or a small one at the front. The CHAIRMAN. Duplicate the request you now have?

Col. LITTELL. Yes, sir.

Capt. DALY. $3,000,000 of the $6,000,000 is to cover a plant in

process now.

SUBSCRIPTIONS TO NEWSPAPERS.

The CHAIRMAN. You are asking $81,000 for subscriptions to newspapers. That was authorized in the last bill-textbooks, newspapers, and magazines.

Capt. DALY. Yes, sir.

The CHAIRMAN. Is it not intended that the newspapers and magazines shall come under the head of recreation-will not that expense be payable out of the $500,000 that we provided for recreation camps? Capt. DALY. I do not know, sir. That has not been allotted to us. We have no part in that.

The CHAIRMAN. What use do the newspapers have?

Capt. DALY. For each regimental organization there is an allowance fixed by the Secretary of War annually for subscriptions to newspapers, periodicals, and magazines.

Mr. SISSON. Who determines what newspapers, periodicals, and magazines shall be sent?

Capt. DALY. The Quartermaster General's office gets into communication with the various news agencies and compiles a circular and publishes that circular containing the news agency prices. That goes into the hands of all the organizations at the posts and elsewhere. There is an allowance fixed-$81 for a regiment a year-and the regimental commander through the post adjutant selects the periodicals that they desire and they enter their subscription for them and they are mailed direct to the post. The present law does not permit of the mailing of those periodicals and newspapers direct to the organization in the field. It requires that they go to the post and go in the post library, where the whole command can have the use of them. There is no authority of law right now to supply magazines and mail them direct to the organization in the field. We have submitted a letter to the chairman of the Committee on Military Affairs, asking for a provision of law that will permit the War Department to do that.

The CHAIRMAN. It is proposed, if the authority is given, during this period to have reading matter sent to wherever the organizations may be?

Capt. DALY. Yes, sir.

The CHAIRMAN. If I correctly understand, the particular literature that is sent to each organization is determined by their own decision?

Capt. DALY. Yes, sir; but they must select from the circular.
The CHAIRMAN. Within the allowance?

Capt. DALY. Yes, sir.

The CHAIRMAN. The $81,000 is the amount required upon the basis of the allowance now authorized?

Capt. DALY. Yes, sir.

METHOD OF PURCHASING SUPPLIES.

Mr. SHERLEY. General, the estimate that was submitted in July totaled, as I recall, for regular supplies, something like $95,500,000. You are asking now for $46,500,000 for six months reserve stock. In the purchasing of a lot of this material, what practice is being followed? For instance, you had an item heretofore of some $30,000,000 for fuel, and presumably of the $46,000,000 a considerable portion is for fuel. Are you doing any of this buying by competitive methods!

Gen. SHARPE. Fuel is now being bought through the Council of National Defense. We furnish a list to them of the amount of fuel required in the various departments, and then they indicate to us from what mine that fuel is to be secured.

Mr. SHERLEY. And the price?

Gen. SHARPE. Yes, sir.

Mr. SHERLEY. You then make the contract?

Gen. SHARPE. Yes, sir.

Mr. SHERLEY. Do you exercise any individual discretion as to the letting of contracts or the price indicated?

Gen. SHARPE. We have not found it necessary, because the prices indicated have been less than those for which we were purchasing fuel before, according to my recollection.

Mr. SHERLEY. Take the item of army ranges. have been buying those over a number of years.

Gen. SHARPe. Yes, sir.

Of course, you

Mr. SHERLEY. And you have a record of what they have heretofore cost?

Gen. SHARPE. Yes, sir. Those are bought by competition, but not after advertising. The officer at Jeffersonville, for instance, has a list of the persons from whom to buy those, and whenever he wants. to buy so many they make informal tenders and he makes the award. Mr. SHERLEY. Has that been the practice heretofore in peace times?

Gen. SHARPE. No; we advertised in the papers.

Mr. SHERLEY. The difference has been, then, simply in the elimination

Gen. SHARPE (interposing). Of the public-notice advertisement. Mr. SHERLEY. What he has been doing has been to use the knowledge acquired from bids submitted in peace time as to the people likely to be able to furnish the material?

Gen. SHARPE. Yes, sir.

Mr. SHERLEY. He has then written and asked them for a price and has then exercised his judgment as to whether to award a contract or not, and for what quantity and at what price?

Gen. SHARPE. Yes, sir.

Mr. SHERLEY. In an instance of that kind does that matter come to or in any way pass through the Council of National Defense? Gen. SHARPE. Not at all.

Mr. SHERLEY. In what particulars have they acted?

Gen. SHARPE. I think in none of the regular supplies, except fuel, and now they are having a conference on the subject of forage.

Mr. SHERLEY. Soap, candles, and matches-I remember being struck last time when the estimate was $850,000, which, on the surface, seemed a tremendous amount for supplies of that character. Those you buy through the regular quartermaster's organization? Gen. SHARPE. Yes, sir.

Mr. SHERLEY. As a result of tenders that are made, but not as the result of advertised request for bids?

Gen. SHARPE. Yes, sir. What we call circular advertisements. Mr. SHERLEY. That applies to paulins, buckets, etc.?

Gen. SHARPE. Yes, sir. Everything in the way of paulins and cotton goods is bought through the Council of National Defense. Mr. SHERLEY. And to appliances for cooking?

Gen. SHARPE. That is bought by the quartermaster at Jeffersonville.

Mr. SHERLEY. That is one of your depots?

Gen. SHARPE. Yes, sir.

Mr. SHERLEY. They are bought from various parties?

Gen. SHARPE. Yes, sir. Jeffersonville is the central point for cooking stoves and cooking appliances.

Mr. SHERLEY. Ice?

Gen. SHARPE. Contracts are usually made at the post for ice.

Mr. SHERLEY. Laundry materials?

Gen. SHARPE. They are bought through our different purchasing offices.

Mr. SHERLEY. Tableware, stationery, typewriters?

Gen. SHARPE. Tableware is bought at Philadelphia.

Mr. SHERLEY. I am not asking as to where so much as the method. Gen. SHARPE. By circular advertisement chiefly now.

Mr. SHERLEY. As to forage, you have recently submitted a request to the Council of National Defense for help in the purchase of forage?

Gen. SHARPE. Yes, sir; on account of the number of horses we are having.

Mr. SHERLEY. In the procurement of the material at these various plants and various camps, is that done through the Quartermaster? Gen. SHARPE. Yes, sir.

Mr. SHERLEY. In the case of a power plant, how would you buy the boilers, plumbing fixtures, and things of that kind?

Col. LITTELL. We would get bids. We would call on the different dealers for prices.

Mr. SHERLEY. You say that you get bids by calling on the dealers; you do not advertise?

Col. LITTELL. No, sir. We get the dealers together and get the dealers' prices. For instance, we get the best refrigerating assistance in the country; we have all the experts to come together and we call for bids for about a week, and they furnish us with the bids in that way.

Mr. SHERLEY. And the contracts are let to the lowest responsible bidder?

Col. LITTELL. Yes, sir.

Mr. SHERLEY. You are actually having competition in the purchase of all the materials, except fuel and forage?

Gen. SHARPE. Yes, sir.

Mr. SHERLEY. Is that your understanding, Colonel?

Col. LITTELL. We do not buy fuel.

Mr. SHERLEY. Except fuel and forage?

Col. LITTELL. Yes, sir.

Mr. SHERLEY. Is that true in the case of food?

Gen. SHARPE. Yes, sir. The camp is always supplied from some depot and that depot will advertise, what we call circular advertise

ments.

Mr. SHERLEY. Perhaps it has been made sufficiently plain, but I wold like to ascertain how far the old system that existed in peace time of supplying the Army with this same character of material is being followed now. If I understand you aright, you are following the same plan, excluding fuel and forage, except, having to get the various things quickly, you do not have the regular and lengthy period of advertisement for bids, but by virtue of the knowledge that you have acquired touching the people likely to be able to supply the articles, you send them a statement inviting them to bid? Gen. SHARPE. Yes, sir.

Mr. SHERLEY. Is that accurate?

Gen. SHARPE. Yes, sir; I should like to explain a little bit further. The law requires public advertisement for bids. When the quantities are large we always, in time of peace, advertise, giving about 30 days' notice. Under the ruling of the comptroller which has been in existence for a number of years he has held that if you can not advertise for 30 days you must advertise for as long a time as you can, but that when the quantities are comparatively small he has allowed us to issue what is known as a circular advertisement, giving 10 days' notice for quantities which were not large. That would be sent around to the dealers that we knew were engaged in the manufacture or the supply of the articles. When the war commenced we omitted the public advertisement for bids, putting it in the paper, so as to avoid the possibility of anyone getting the notice and securing a corner on the market, but we have made use of the circular advertisement, sending it around to people whom we knew were in the business and getting bids from them and opening them in that way. We have made use of that even when the quantities were larger than were usual in peace times, but in all cases an abstract is made.

Mr. SHERLEY. Speaking by and large, what has been your experience-are you having competitive bidding under this system?

Gen. SHARPE. Yes, sir. The people are bidding just the same as before.