The CHAIRMAN. Is there any information from abroad as to the amount of clothing and personal equipment that has to be provided as compared to their allowance in ordinary times?

Gen. SHARPE. We have no official information. We have reports from some of the foreign officers who have told us of the clothes which they found had been used in the way of shoes and clothing, and based on some of those reports we have asked for this increased reserve supply, in order to meet some of the calls.

The CHAIRMAN. Based on the reports which you have received? Gen. SHARPE. Yes, sir. They are not official; they were in conversation with officers who had seen service in the English Army. There is another thing about the matter of clothing. We have requested a change in the clothing order, so to speak. Under-I do not know the Revised Statutes (section 1296) that provides that the President shall prescribe the allowance of clothing; that has been in existence a number of years. There is another statute (section 1302) which has permitted them to make what we call a clothing allowance, a money allowance; each man was furnished with the money allowance for clothing on his enlistment. We have recommended, and it has been approved, that during the continuance of the war the money allowance for clothing should be discontinued and that the men must be supplied with the amount of clothing which was required. That eliminates all of that bookkeeping which had to be made under the money allowance in the two accounts-one for every individual and one company account. That has been now changed, and they are authorized to issue what is known as equipment C. The clothing, then, belongs to the Government and comes back to us. For instance, the shoes will be cleaned, repaired, and

reissued to the men.

In that way there will be a considerable saving on a great deal of the clothing and a great deal of salvage, because even the clothing which is not capable of being repaired will be sorted-cotton or wool, the buttons and everything like that will be put aside, even any of the wool will be used in the manufacture of cloth, and anything that can be made of the parts of the cotton which can not be repaired will be utilized to the fullest extent.

The CHAIRMAN. Captain, you said that you would be able to show the prices which you had estimated and which you were compelled to pay?

Capt. DALY. Yes, sir. I will deal with the materials first, because it is the largest item. Cotton cloth, olive drab, the previous estimate. was based on 20 cents a yard, and we have to pay 30 cents a yard. Duck, khaki, No. 4, 42-inch, 64 cents per yard. That was the price upon which we based the other estimate, but now we pay 90 cents.

Duck, khaki, 8 ounces, the previous estimated price was 22 cents; we are paying 34 cents. Duck, khaki, 12.4 ounces, the previous estimated price was 30 cents a yard; we are paying 60 cents per yard. Shelter-tent duck, the previous price, or the price upon which the previous estimate was based, was 25 cents; we are now paying 38 cents. Shirting, flannel, the price upon which we based the previous estimate was $1.29; we are paying $1.57. Melton, 16 ounces-that is, uniform material-the previous price was $1.61; we are now paying $2.62. Melton, 30 ounces, overcoat material, the previous price was $2.06; we are now paying $3.50. Waist belts, the previous price was

17 cents; we are now paying 25 cents. Gloves, riding, the previous price was $1.90; we are now paying $2.20. Drawers, winter, the previous price was 81 cents; we are now paying $1.624. Gloves, woolen, O. D., the previous price was 45 cents; we are now paying 61 cents. Axes, service, the previous price was $1.30; we are now paying $1.70. Canvas leggings, the previous price was 90 cents; we are now paying $1.05. Shoes, russet, the previous price was $2.81; we are now paying $5.10. Slickers, the previous price was $3.71; we are now paying $4. Undershirts, woolen, the previous price was 88 cents: we are now paying $1.624. Blankets, the previous price was $3.71; we are now paying $6.25. Broom corn, the previous price was 50 cents; we are now paying 68 cents. Bugles, the previous price was $4.79: we are now paying $5.40. Cots, the previous price was $2.50; we are now paying $3.50. Tent stoves, the previous price was $1.80; we are now paying $2.80. Hospital tents, tropical, the previous price was $97.97; we are now paying $142.74. Hospital tents, ward, the previous price was $172.57; the present price is $222.26. Pyramidal tents, the previous price was $55.34; we are now paying $72.42.

You remember that yesterday, in discussing the cost of the pyramidal tent, I gave it as $64, but it is $72.42. The next is storage tents. the previous price was $123.13; we are now paying $175.59. Wall tents, large, the previous price was $75.46; we are now paying $97.87. Wall tents, small, the previous price was $40.51; we are now paying $52.02.

The CHAIRMAN. Those are the prices that are recommended?

Gen. SHARPE. Those prices, or the most of them, as was explained yesterday, are the prices at which we are buying through the Council of National Defense. We are buying cotton, woolen, and leather goods through the Council of National Defense, and most of those articles come through them.

The CHAIRMAN. Do they fix those prices?

Gen. SHARPE. Yes, sir; they recommend the places and prices at which we should place the orders. We could not have gotten many of those things if there had not been such an organization as that. You take tentage duck, for instance, and they have carpet companies, or carpet-weaving companies working on that. Those carpet-wearing companies now have their looms making the tentage duck that we require. They are taking 25 per cent of all canvas which is produced by the automobile tire manufacturers, also. They are taking 25 per cent of their output now. It is a very great concession on their part, because they not only have a great demand from us, but from others, for automobile tires and things like that: but it is a superior quality of canvas that lasts a great deal longer than the ordinary 12.4 ounce canvas. There was not the room or capacity in the country to produce all that we required of that.

The CHAIRMAN. I understood you to say that these prices were fixed as were the prices of other articles that have been purchase 1 through those subcommittees of the Council of National Defense?

Gen. SHARPE. Through the committee on supplies, on which we have an officer working.

The CHAIRMAN. Now, do I understand that as to this item, this appropriation of two hundred and fifty and some-odd million dollars would have been suflicient for all of the things you had included in the estimate had it not been for these prices being in excess of what

had been anticipated, or have other reasons or other things occurred which have necessitated expenditures that were not contemplated? Capt. DALY. No, sir. The $17,000,000 that we have in here is based on the cost that we had to pay for the goods in excess of the prices that we used in framing the previous estimates.

The CHAIRMAN. Outside of clothing, for which about $200,000,000 is expended, what is the balance of the appropriation to be expended for?

Capt. DALY. For the purchase of band instruments are we talking about the present estimate?

The CHAIRMAN. No; the previous estimate.

Capt. DALY. The difference of about $77,000,000, or the balance of $77,000,000, is for tentage, band instruments, employees, and main

tenance.

The CHAIRMAN. What character of employees do you mean?

Capt. DALY. Cutters, trimmers, machine operators, and all the employees in our factories.

The CHAIRMAN. You manufacture them?

Capt. DALY. Yes, sir.

Gen. SHARPE. We have 1,500 employees in the factory at Philadelphia.

The CHAIRMAN. What is the cost of manufacturing the clothing in those factories as compared with the cost of obtaining it by contract?

Capt. DALY. It is practically about the same.

The CHAIRMAN. Can you give us the figures on that?

Gen. SHARPE. Yes, sir. We always submit them in the estimates.

The CHAIRMAN. What percentage of the clothing do you manufacture yourselves?

Capt. DALY. A very small percentage. We probably do not manufacture now more than 20 per cent. It is 18 or 20 per cent. I will verify that.

Gen. SHARPE. I would like to explain one of the reasons for the fact that our price is sometimes a little in excess of the price at what we buy outside. That is due to various causes. In the first place, it

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is because we work eight hours per day, as against longer hours on the outside.

Mr. BYRNS. Can I ask a question right there, Mr. Chairman?
The CHAIRMAN. Certainly.

Mr. BYRNS. General, how are your contracts made, or what policy is followed in making contracts for the manufacture of clothing? Do you make them on bids?

Gen. SHARPE. We take them on bids; yes, sir. We make contracts through the depot in Philadelphia, and they get the bidders over

there.

Mr. BYRNS. Some of them are made through the depot quartermaster at Jeffersonville, Ind., also?

Gen. SHARPE. Yes, sir.

Mr. BYRNS. With reference to the action of the Council of National Defense, I think you were asked yesterday as to exactly what figure they cut in making those contracts.

Gen. SHARPE. They do not come in on the contracts far making clothing.

Mr. BYRNS. Those contracts are left entirely to the depot quartermasters?

Gen. SHARPE. Yes, sir.

Mr. BYRNS. Do they take bids and let those contracts on competitive bidding?

Gen. SHARPE. Yes, sir; or they look around and find some plant which is not occupied and get the prices at which they will make the garments.

Mr. BYRNS. I had a letter only this morning with reference to a contract that was let by the depot quartermaster at Jeffersonville, Ind. This letter comes from a concern which is equipped with the latest machinery and that has been engaged in manufacturing men's wear for a number of years. They have a large plant or factory located just out of the city of Clarksville, Tenn. It is a sanitary place and has sanitary surroundings. They have been trying to get a contract from the Government, through the depot quartermaster, at Jeffersonville, Ind., for two or three months, but without success. Sometime ago a contract was made with Mrs. A. H. Taylor, of Bowling Green, Ky. She has a purely dressmaking concern and has no machinery and no equipment for manufacturing men's wear. That concern has never engaged in or attempted to engage in the manufacture of men's clothing. She has been making women's dresses for a number of years and has quite a reputation all through the South and that section, and it is a large business, I have no doubt. Now, that concern made a contract with the depot quartermaster at Jeffersonville, Ind., for the manufacture of men's wear, and, not manufacturing it themselves, they sublet that contract to various concerns in Kentucky and Tennessee at a lower price than the price Mrs. A. H. Taylor received from the depot quartermaster. Two of the contracts, I am informed, were let to concerns at Louisville, Ky., another to a concern at Russellville, Ky., and another was let to a concern at Clarksville, Tenn., in my district. As I say, those contracts were let at a lower price by Mrs. Taylor than the price she was to get under her contract made through the depot quartermaster at Jeffersonville, Ind. All of these concerns are doing work for this dress

making concern at Bowling Green, and she is receiving, of course, a much larger price from the Government for the work than she is paying to these concerns. This concern at Clarksville, as I have said, is a large concern; it paid last year in the neighborhood of $2,500 income tax, and I have no doubt they paid a greater amount than this dressmaking concern at Bowling Green, Ky. Thirty days ago they submitted a bid to the depot quartermaster at Jeffersonville, Ind., on the basis of the price that they are receiving from Mrs. A. H. Taylor, of Bowling Green, Ky., but they have never been able to secure a contract for one dozen from the Jeffersonville, Ind., depot quartermaster.

Gen. SHARPE. Can I get that letter?

Mr. BYRNS. I will be glad to furnish it to you. This concern stated to me that if necessary they are willing that I should use their name, but that in view of the fact that they were getting this subcontract from Mrs. A. H. Taylor, and in view of the further fact that they were trying to do business with the Government, they did not want to prejudice their case, or they did not want to be put in that situation. Now, that is a situation that ought to be looked into, undoubtedly. I do not know that I ever had a matter drawn to my attention which deserved more investigation and attention than that.

Gen. SHARPE. I would like very much to have an investigation made of it.

Mr. BYRNS. This is a large concern, equipped with the necessary machinery to do this business. This contract was let by the depot quartermaster at Jeffersonville, Ind., to a dressmaking concern which is not equipped to do this business. They have never manufactured men's clothing during their lives or existence. Then they undertake to fill the contract by subletting it to these other concerns which are trying to do business with the Government at the price of the subcontracts and not at the price given to Mrs. Taylor. I would be glad to furnish the letter.

Gen. SHARPE. I want to have a thorough investigation made of it. May I go on further, Mr. Chairman, and take up the matter that I was about to explain?

The CHAIRMAN. Yes.

Gen. SHARPE. We manufacture those articles at the depot; but, as I have said, we can not at times make them at the same price that they can be made on the outside. That is due to the fact that the hours of labor are different, and it is due, also, to the fact that we give leave of absence to employees, which, of course, the outside manufacturer does not. But one of the desirable things in operating our plants is that we can fill requisitions for particular sizes required of any article that we manufacture there. If you have a large contract the contractor has to cut his lathe cloth to make certain sizes. If you want some particular numbers or sizes it is almost impossible to get them from the manufacturer, because he has already made the cut of his cloth for his lathes. Therefore we utilize our plant in that respect in turning out the particular sizes of garment. That is sometimes not an economical way of doing it, because there may be a greater amount of clippings and cuttings from the cloth when only one size is made than where you are cutting patterns for an entire lathe. In that way it sometimes costs a little bit in excess, and, in fact, it must be; but the question we have is a question of