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Capt. Daly. The largest expense in recruiting is advertisingbill posting and advertising. They use every medium of advertising-street car advertising, bill posting on billboards, theater curtains, and moving-picture advertising. The greatest expense is in the advertising. We have published a book entitled “The Army as a Career," and we have probably made five reprints of that in the last three months, 100,000 copies being in each edition.

The CHAIRMAN. Who determines how much money shall be spent on each line of advertising ?

Capt. Daly. The Adjutant General. The whole matter of the expenditure of that recruiting fund is under his direction. We disburse the money, but he authorizes the activities.

Mr. GILLETT. Does he decide in what sections it shall be spent?
Capt. Daly. Yes, sir.
Mr. GILLETT. Does he decide it personally?
Capt. Daly. His officers on duty do.
Mr. GILLETT. I mean who has the real direction of it?
Gen. SHARPE. I think Col. Reed is in charge of that.

Mr. GILLETT. Do you know how much was spent last year for that purpose?

Capt. Daly. I do not know, but I can ascertain and put it in the hearing

Mr. GILLETT. Do you know about how much?
Capt. Daly. For this year?
Mr. GILLETT. For the year just ended?

Capt. Daly. It was in the neighborhood of $220,000, or something like that.

DESERTERS.

The CHAIRMAN. The next item here is deserters, $350,000. That pays the $50 reward.

Capt. Daly. Yes, sir; that is the basis of it. That is the estimate given us by The Adjutant General. Of course, it is just an estimate because it is impossible to determine exactly what it will be.

Gen. SHARPE. That includes the National Army, National Guard, and Regular Army.

LIME, DISINFECTANTS, ETC. The Chairman. For lime, disinfectants, crude oil, flagstaffs, etc., you estimate $620,000.

Capt. Daly. Yes, sir. That is practically the same as the previous appropriation, and it is for the same purpose.

HORSE AND MULE SHOES AND HORSESHOE NAILS. The CHAIRMAX. For horse and mule shoes and horseshoe nails you estimate $1.620,000.

Capt. Daly. Yes, sir. It is necessary to have a stock of horse shoes and nails. They are for the animals that will be needed for these recruits. That covers a supply for a year.

TOWELS AND LAUNDERING OF SAME, The CHAIRMAX. For towels and laundering of same you estimate $158.550.

Capt. Daly. Yes, sir.

OFFICE EQUIPMENT.

The CHAIRMAN. For office equipment you estimate $573,188.

Capt. Daly. That is practically the same as the last estimatethat is, of the previous deficiency estimate. We have practically the same number of officers to equip, or will have.

The CHAIRMAN. When you dismantle all those National Guard camps, you will not need all that?

Capt. Daly. Yes, sir. If they do not use those camps again-

The CHAIRMAN (interposing). What is the necessity of having a reserve stock of office equipment?

Capt. Daly. We must have it made for our records in France. There is not much of that, as I understand it, that they can get over there. We are figuring on losses there and losses in transit.

Mr. CANNON. Let me ask you a question. You made an estimate for cantonments in France, as I understand it!

Gen. SHARPE. No, sir; we made no estimate.

SHELTERING OF TROOPS IN FRANCE.

(See p. 371.) The CHAIRMAN. Out of what appropriation is provision being made for sheltering the troops there!

Gen. SHARPE. That is undertaken by the Engineer Department, Mr. Chairman. According to the field service regulations, they provide for all construction and the operation of roads in the zone of operations or theater of operations. There is some difficulty as to where the theater of operations will be, and there is the question of a duplication of the personnel, of the appropriations, and everything else, so that, after a conference with the Chief of Engineers, I wrote a letter to the Secretary of War recommending that all France should be considered as the theater of operations so far as appropriations for construction and repair were concerned. All of that comes under the Engineer Department. The only provision that we have is for a base depot in France. We are not to look out for anyting over there outside of that.

The CHAIRMAN. Outside of that
Gen. SHARPE (interposing). The engineers look out for it.

Mr. CANNON. You do not know whether it is contemplated, that these cantonments will have to be duplicated there? That does not come under you?

Gen. SHARPE. No, sir; it does not come under us.
Mr. Cannon. And you are not informed ?

Gen. SHARPE. No, sir; but I understand informally that the French bave a type of knock-down building that they use over there.

Mr. CANNON. It is not anticipated that it will be necessary to make an original investment for the so-called training there, or for the retraining there?

Gen. SHARPE. I do not know what provision is made for that. It would be made by Gen. Black.

Mr. CANNON. You do not know whether there are any estimates here for that?

Gen. SHARPE. There are none from us.

WEDNESDAY, AUGUST 1, 1917.

TRANSPORTATION OF THE ARMY AND ITS SUPPLIES.

Mr. SHERLEY. General, the next item you are interested in is on page 75 of the bill, "Transportation of the Army and its supplies.” You are asking for $450,490,305, and you have had $16,000,000 in the Army bill and a deficiency of $221,963,745, or a total in round numbers of practically $238,000,000.

Gen. SHARPE. Yes, sir. Of that amount we had obligated on July 26 $118,554,230.48, leaving an available balance of $119,409.514.74.

Capt. Daly. The details of the way in which this estimate was prepared are slightly different from the others, in that we have taken the total amount required for the strength for which we estimate now, 2,033,000 men, and deducted from that the amount that was appropriated in the other two bills, leaving a balance to be appropriated to meet the needs of this force.

The first item is for transportation of troops and impedimenta.

TRANSPORTATION OF TROOPS BY THE NAVY.

(See pp. 299, 305, 486.)

Mr. SHERLEY. Before you go into the details, there are two or three matters that perhaps ought to be understood. There has been some testimony heretofore by the Navy to the effect that it was proposed to take over the transportation of troops and that that would be under the direction of the Navy and not the Army. Does that fact, if it be true, in any way affect these estimates of cost of transportation?

Capt. DALY. No, sir.
Mr. SHERLEY. Why not?

Capt. Daly. The ships that are furnished by the Navy under the present arrangement are under control of the Navy and under command of the Navy and furnished for the transportation of troops, we have to pay for the crew and the operating expenses. We have that in this estimate.

Mr. SHERLEY. That is just the point. If these troops are to be transported on ships that are under the entire control of the Navy, in every particular, even to the extent of control of the personnel of the ships themselves, they becoming enlisted men of the naval service, is it then contemplated that the Army will bear that expense?

Gen. SHARPE. Mr. Sherley, we have always heretofore borne that expense. When we would get the supply vessels we would pay the entire operating expenses of those vessels. We would pay for the crew, pay for the officers and the coal and any repairs that had to be made, and also for the fuel and oil and waste and things like that. We have always done that.

The only information in the office of the Quartermaster General bearing on the subject of transfer of transports to the Navy Department is covered in draft of letter from the Navy Department, copy of which is attached, from which it would appear that the plan was approved by the President, under date of July 12, 1917.

Under present arrangements the commercial vessels in the service of the War Department are under charter upon a tonnage basis for the ship alone, the pay of the crew and the cost of the operation in all respects being borne by the Quartermaster Corps.

It would appear from draft of letter referred to that the Navy will pay for the complete personnel of the ships, but that the costs of charters, equipment, alterations, upkeep, fuel, and ship stores shall be paid by the Navy on account of the Army.

The only difference in cost, therefore, if the plan becomes effective will be for the pay of the crew as the other expenses while not paid by the Army direct will have to be reimbursed to the Navy Department appropriations.

NAVY DEPARTMENT,

Washington, July 25, 1917. In accordance with paragraph 2 of the joint letter of the War and Navy Departments, approved by the President July 12, 1917, the War and Navy Departments, after consultation, have decided that the following vessels now chartered hy the Army for use as transports shall be commissioned in the Navy with à complete naval personnel.

Responsibility for the care and upkeep of the chartered vessels and their equipment shall rest with the Navy.

The cost of all charters, equipment, alterations, upkeep, fuel, and ship stores necessary to the efficient use of the vessel in the transport service shall be paid by the Navy for the account of the Army. The cost of maintenance of the naval personnel shall be paid by the Navy.

The Army equipment now on the vessels shall be transferred to the Navy during the continuance of the vessel in the transport service.

The Army shall determine the duration of the charter and shall, on the expiration of the charter, take custody of all Government equipment on each vessel that have been covered by a transfer of funds, the Navy invoicing the same to the Army without transfer of funds.

The Quartermaster's Department of the Army and the Bureau of Supplies and Accounts of the Navy will jointly arrange all financial details, including conditions of charters.

Mr. SHERLEY. Were those ships that were in the naval service?
Gen. SHARPE. Yes, sir; those were naval vessels.
Mr. SHERLEY. Did you pay for the personnel aboard those ships?
Gen. SHARPE. Yes, sir; we always paid for that.
Mr. SHERLEY. By what system of accounting?

Gen. SHARPE. It was a settlement between the two departments; a transfer settlement would be made for that.

Mr. SHERLEY. Is it your understanding that even assuming that the Navy does take charge of all the transportation of troops from this country to Europe that the expense of such transportation will be borne out of funds appropriated for Army transportation?

Gen. SHARPE. At the time these estimates were prepared, Mr. Sherley, it was not definitely decided that the Navy was going to operate those vessels. They made the proposition, and the proposition was accepted.

Mr. SHERLEY. Before taking up the details, if I understand the statement that has been made, this estimate is an estimate based on the assumption that there will be need for the transportation and handling of some 2,033,000 soldiers with their corresponding number of officers, within the fiscal year 1918; is that true?

Capt. Daly. Yes, sir.

Mr. SHERLEY. Now, is the estimate based on th: idea of placing that number of men across the water, or was any figuring done along those lines?

Capt. Daly. I can not say that it is based on taking that number of men oversea. Of course, the transportation of the men across the water is purely transport service. We have in here an estimate that covers the hiring or chartering of transports for a certain period.

Mr. SHERLEY. You mean that that is one of the items that go to make up this amount?

Capt. Daly. Yes, sir.

Mr. SHERLEY. What we would like to know is how you arrive at your total; by what process on what premise did you work in order to arrive at this total?

TRANSPORTATION OF TROOPS AND IMPEDIMENTA.

Capt. Daly. The first item is for the transportation of the Army and its supplies, including transportation of recruits when moved either by land or water, and of baggage, and that is $31,865,475.50. That is based on the assumption of the movement of men in the United States to camps of concentration and from camps of concentration to ports of embarkation.

Mr. SHERLEY. How much out of the $238,000,000 has been allotted for that purpose

Capt. Daly. $148,780,000.

Mr. SHERLEY. That has been set aside out of the previous appropriation ?

Capt. Daly. Yes, sir.
Mr. SHERLEY. How much of that has been expended!

Capt. Daly. I can not tell, sir. We have expended up to date $118,554,230 for all purposes. I can find out how much of it has been obligated for this particular purpose.

Mr. SHERLEY. How did you arrive at approximately $180,000,000 for the transportation of troops in the United States?

Capt. Daly. We estimated that the number of troops, including troops to be moved, would be practically 2,000,000 men in the year.

Mr. GILLETT. Moved just once!

Capt. Daly. No; during the year. That is the total movement throughout the year from various points. Movement of recruits, for example, from recruiting rendezvous or recruiting stations to recruit depots, moving troops from posts throughout the United States to concentration or cantonment camps, and from cantonment camps to ports of embarkation, and we arrived at a per capita of approximately $86.50. Now, we considered long distances in that, and that is the average on which this estimate was based.

Mr. CANXON. Aggregating what, in round numbers?
Capt. DALY. Aggregating a total of $180,000,000.

Mr. SHERLEY. That would make, roughly speaking, $192,000,000 for this purpose ?

Capt. Daly. Yes, sir.

Mr. SHERLEY. You are actually asking for a little over $180,000,000 ?

Capt. Daly. Yes.
Mr. SHERLEY. What made the difference?

Capt. Daly. I will tell you what the difference is, Mr. Sherley. The estimate that we would move all of these men at $86.50 would give us, of course, $192,000,000, but we arbitrarily assumed that

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