The CHAIRMAN. You expect to spend the money this year, do you not?

Commander KEARNEY. This is how that feature of it comes in. If we obligate money on outside or civil contracts, the money carries through, but if we attempt fabrication in a Government plant, the available funds cease on July 1. There are three of our plants that are concerned in ordnance appropriations-the gun factory, the torpedo station

Mr. GILLETT (interposing). You mean the gun factory at Washington?

Commander KEARNEY. Yes; the torpedo station; the powder factory at Indianhead. On the 1st of July, in a Government plant, the funds stop, whereas if the same contract had been placed on the outside the funds will continue over.

WASHINGTON NAVAL GUN FACTORY.

TOOLS AND MACHINERY PLANT.

(See p. 269.)

The CHAIRMAN. For the Washington naval gun factory you are asking $2,500,000?

Commander KEARNEY. Yes, sir. That is our main dependence in ordnance manufacture, capable of fabricating our biggest guns, our largest mounts, and is entirely under Government control. It gives us initially, the one positive means of getting comparative prices; in other words, we manufacture a gun there and it costs us so much, and we can compare that with prices outside.

The CHAIRMAN. That is in connection with the item of $5,000,000? Commander KEARNEY. Under public works, yes, which Admiral Harris will bring before the committee. Briefly, it has reference to the equipment of the pattern shop, the woodworking shop, the machine shop, the brass foundry, the boiler-making shop, and the optical shop. I might explain that our situation with reference to optical work has not been wholly satisfactory; that is, there have been but one or two firms in this country, up to the present time, which have made most of our instruments. One is Bausch & Lomb and the other is Keuffel and Esser. In optical work the first manufacture is that of the glass and then the grinding of the lenses, and those two firms have enjoyed a practical monopoly of the manufacture of telescopes, periscopes, and all of our optical instruments. The forge shop is another item that is of major importance because, as you know, the steel capacity of the country is practically booked to its limit. Then locomotive house equipment and mine shop equipment. It runs to a total of $2,500,000.

The CHAIRMAN. That is for equipment alone?

Commander KEARNEY. Yes; for work under the Bureau of Ordnance, which is equipment.

The CHAIRMAN. How long will it take to construct the buildings and get your equipment so as to have it available?

Commander KEARNEY. Admiral Harris can tell you best about that; however, in placing contracts for machinery we find that unless we book ahead there is almost an indefinite date of delivery.

4400-17-16

For instance, the machinery required at the yard is of an extremely large and massive type, and we must get our orders in to get any preferment at all from the manufacturers. Some of it takes a very long time; for example, a lathe capable of handling a 16-inch gun will take, in the process of manufacture, approximately two years; that is, on that one lathe alone. So if we were to wait until the buildings are finished, with the idea of buying the equipment then, there would still be the necessary time required to manufacture the machinery, and that would mean an untold delay. The machine manufacturing facilities of the country are overtaxed and there is constant reference now to the question of priority. Not only our own Government requirements but the requirements of the allies with regard to lathes, grinding machines, and boring mills are such that manufacturers are working to full capacity.

The CHAIRMAN. Is this the most feasible place to develop and expand?

Commander KEARNEY. I should say yes. I have been on duty at the gun factory for two years. I have had considerable experience. at other navy yards and stations, and its location is, I should say, eminently satisfactory. The proving ground is immediately under its lee and the department is right here at hand. You have already got a plant there I would have to guess at its value, but I should say-I might be entirely extravagant or short of the mark-it was worth $50,000,000; the present value of buildings alone is $5,500,000; you have an organized personnel that you could not build up in another community in five years, and you have a working force there which will admit of expansion.

The CHAIRMAN. Has there been any estimate made as to when you will be able to install his equipment and start the operation of this machinery?

Commander KEARNEY. I will take the pattern shop as a concrete example, and I should say that we could possibly get that building up in three months. Let me take another one. We are already digging, to the westward of the present gun-factory buildings, the gun pit for the new gun shop the instant that becomes availablewhich, as I say, is already in the process of rapid construction—it will release a certain number of other buildings; those buildings will take this new equipment referred to herein to a certain degree. That is just one possible line of using it. The matter has been very carefully gone into, not only by the chief of the bureau, but by the superintendent of the gun factory, and the Bureau of Yards and Docks. It has been under active consideration, to my knowledge, for a period of six months. In other words, this is not a hasty estimate.

ADVANCE PAYMENTS TO CONTRACTORS.

The CHAIRMAN. What is this item you have about advance payments?

Commander KEARNEY. Under date of June 5 we wrote the Secretary of the Navy, and I think at a subsequent date he wrote to Congress, recommending that one of two things be done. First, that inasmuch as the Secretary of the Treasury has authority to deposit Government funds with various banking institutions at a normal

rate of interest and that these same institutions make a practice of loaning money on approved security, the idea was to ascertain whether the Treasury could possibly permit the loaning of money at a nominal rate of interest, using the contracts as a security. This was found to be illegal, so that drooped of its own accord. The other suggestion was that Congress be asked to pass a resolution similar to the following:

Resolved, That during the period of the present war the executive departments of the Government be, and are hereby, authorized to make an advance payment to contractors for supplies, as may be necessary, in an amount not to exceed 30 per centum of the contract price of the articles, in order that the contractor may prepare promptly and without distress for the wrok, provided that such contractor will give an acceptable surety to the Government for the money so advanced.

We have either actually made or are negotiating contracts with a number of new firms; that is, firms that have never before undertaken Government ordnance work for the Navy.

Mr. GILLETT. When you say new firms, you mean new as to Government work?

Commander KEARNEY. Yes.

Mr. GILLETT. But they are all old firms?
Commander KEARNEY. Yes.

Mr. GILLETT. They are not new firms organized to go into the business of manufacturing for the Government?

Commander KEARNEY. No; they are old firms who are about to take on a new activity. These firms, while they could go out and borrow the money, would have to figure in their estimate to us, for a manufacturing price, the cost of that interest, otherwise they would lose; and we felt that if we could obtain an authorization from Congress to advance approximately 30 per cent with approved surety these concerns could go ahead with the work, and we have their assurances that this could be done.

Mr. GILLETT. If you want authority to do that for one concern, you would have to do it as to all?

Commander KEARNEY. Yes, sir; and that is the reason why it provides for contracts already placed; all would be placed in the same position of receiving an advance of 30 per cent.

Mr. SHERLEY. You would have to pay it to all concerns that were not previously equipped for Government work?

Commander KEARNEY. Yes.

Mr. SHERLEY. But you would not make advance payments to concerns that have going plants capable of doing Government work? Commander KEARNEY. No; the advancements would be made only after a thorough investigation of the demands of the company, verified by our own inspectors and our own officers--our accounting officers.

RICE GUN.

The CHAIRMAN. Do you know anything about the Rice gun?
Commander KEARNEY. Yes, sir.

The CHAIRMAN. A bill was introduced appropriating $50,000 to develop it?

Commander KEARNEY. Yes, sir. As I recall it, the Rice gun was first tried out at Mare Island, Cal., about six, eight, or nine months

ago. The result of that test was not at all promising or satisfactory.

Mr. GILLETT. What sort of gun is it?

Commander KEARNEY. It is a centrifugal gun, using a device that projects a spherical projectile as a result of centrifugal force. I had a conversation with Mr. Rice over the telephone yesterday, and he says that he wants to have his model repaired and placed in condition at the yard to bring it here to demonstrate before the Appropriations Committee. The object of this gun, or the essential feature of it, is that it has no recoil or back kick. It may be possible to develop it, but when it was referred to the Special Board on Naval Ordnance that board reported that the bureau would not be warwanted in expending its funds for the development of this invention.

The CHAIRMAN. Upon the ground that it did not promise anything?

Commander KEARNEY. We can not see that it does promise anything specific, but the inventor, like all inventors, is extremely optimistic. He has succeeded in propelling a spherical projectile of about one-half inch or three-quarters of an inch in diameter with a fair degree of accuracy, but the essence of a successful projectile with us is an elongated projectile, in order to give accuracy of flight, penetration, and to carry explosives and fuses. Whether his gun will permit of being developed to such a degree as to project a projectile of that nature, I do not know.

The CHAIRMAN. The board recommended that the bureau should not expend its money in the development of the gun?

Commander KEARNEY. Not to expend ordnance money for it. If the committee should see fit to appropriate $50,000 for that purpose, we would be pleased to go ahead and carry the experiment out, but the Bureau of Ordnance has not asked for $50,000 for that purpose.

RATIFICATION OF OBLIGATIONS INCURRED.

In looking over my memoranda I find that the chief of bureau desired to bring the following to your attention

Mr. GILLETT (interposing). Where is that?

Commander KEARNEY. It was carried in the previous act. I will read it:

That the appropriation contained herein shall be available for the payment of obligations on account of the existing emergency incurred prior to the passage of this act, and which are properly chargeable to such appropriation.

The CHAIRMAN. You have not, as far as I can see, incurred any obligations under this. We put that in the appropriation act because things had to be done under very extraordinary circumstances. Commander KEARNEY. Yes, sir; we have obligated a certain amount already.

The CHAIRMAN. In what way?

Commander KEARNEY. For guns and mounts for merchant ships. Under our previous item of batteries for auxiliaries and merchant ships we had $29,672,000, and we have already obligated $29,693,000. The CHAIRMAN. What item was that for?

Commander KEARNEY. That was for batteries for auxiliaries and merchant ships.

The CHAIRMAN. You had $29,000,000? Commander KEARNEY. We had $29,672,000, and we have actually obligated to date $29,693,000.

Contracts now under actual negotiation for gun forgings, gun mounts, and finished guns will require approximately $8,000,000 in excess of funds now available.

WEDNESDAY, JULY 25, 1917.

STATEMENT OF REAR ADMIRAL FREDERIC R. HARRIS, CHIEF BUREAU OF YARDS AND DOCKS AND COMMANDER E. L. BENNETT, ASSISTANT TO CHIEF BUREAU OF NAVIGATION.

BUREAU OF YARDS AND DOCKS.

MAINTENANCE-SECTION BASES, CAMPS, AND SUPPLY STATIONS.

The CHAIRMAN. Under "Bureau of Yards and Docks-Maintenance: For general maintenance of yards and docks." etc., you are asking $1,500,000. You have had $4.769,000?

Admiral HARRIS. Yes, sir. Up to July 1, 1917, out of the $4.769,000 we expended in the last fiscal year $604,000. So we have a balance this year of $4,164,431. Out of "maintenance" also, in addition to what we have expected, we will have to look after the maintenance. of the section bases, also camps and supply stations.

The CHAIRMAN. What are section bases?

Admiral HARRIS. Section bases are in the various naval districts for caring for the patrol fleet.

The CHAIRMAN. Have you established a number of those bases? Admiral HARRIS. Yes, sir; we have established section bases, training camps, and air stations, 300 in all. I have a list of the new stations, together with a description of them. We have to heat them, supply electric light and coal, and we have various odd jobs to do. Sometimes we take a building like an armory and have to put up some partitions and fix it up. Sometimes we rent places that have no buildings and we have to put up the buildings. For instance, I have just been to one at Cape May, an old amusement park. We took the building there and it was not arranged to be heated during the winter. Of course, there was some temporary arrangement for the summer time. Now, we will have to provide heat and the coal for the heat and have to pay for water and light. For example, in the New York district we have had to allot $50,000 out of "maintenance" for maintaining a section base and $50,000 out of "repairs," which we will come to later, for arranging the heating apparatus.

The CHAIRMAN. How do you arrive at this estimate?
Admiral HARRIS. I can give you a summary.

Under "Maintenance" we have 9 navy yards, 9 naval stations, the Naval War College, 4 training stations, 10 aeronautic stations, 2 torpedo stations, 3 submarine bases, 9 ammunition depots, 2 magazines, 1 nitrate depot, 18 hospitals, 27 coal and fuel oil plants, 21 radio stations, the proving ground, the rifle ranges, 1 experimental station, marine barracks, posts, and depots, 43, brigades, 7, naval section bases, 18, naval section offices, 15, naval training