ACTUAL AND ESTIMATED EXPENDITURES AND CARRY-OVERS FOR VARIOUS FISCAL YEARS Mr. UMSTEAD. According to the tables just inserted, there was a carry-over on June 30, 1937, of $99,184,579, of which amount $68328.653 appears under "Construction and machinery" and $30.855,92 under "Ordnance." At the time of the hearings last year the carryover was estimated at $56,000,000 and later, on August 8, 1937, during the hearing before the deficiency subcommittee, the amount of the carry-over was estimated at $81,000,000, indicating that both predictions last year were considerably wide of the mark. What were the actual expenditures for the fiscal year ending June 30, 1937. both under "Construction and machinery" and "Armor, armamen and ammunition"? Admiral Du BOSE. The actual expenditures for the fiscal year 1937 under "Construction and machinery" were $136,567,569, and under "Armor, armament, and ammunition," $44,996,757. Mr. UMSTEAD. Making a total, I believe, of $181,564,326. Mr. UMSTEAD. You expect to expend this fiscal year, out of a total availability of $229,184,579, the sum of $184.339,308, which means that you will carry over into the fiscal year of 1939, on July 1, 193. the sum of $44.845.271? Admiral Du BOSE. Yes, sir. Mr. UMSTEAD. With that carry-over just stated, plus the amount requested in these estimates under "Replacement of naval vessels," you would have available during the fiscal year of 1939 a total sum of $188,545,271? Admiral Du BOSE. Yes, sir. Mr. UMSTEAD. Has anything occurred since the carry-over estimate of $44.845,271, was made to suggest that it is an underestimate! Adimarl Du BOSE. Let me get that question straight. Do you mean whether our estimate of carry-over from 1938 to 1939 is an underestimate? Mr. UMSTEAD. Whether or not it is an underestimate now, owing to any influences occurring since the amount of $44,845,271 was arrived at. Admiral Du BOSE. We have given you our estimated expenditures for the fiscal year 1938. We still expect to spend that sum of money in 1938-$136.124.000 under "Construction and machinery" and $4 215.308 under "Ordnance." With that estimated expenditure actually made, the carry-over to 1939 will be as stated. We may have slightly underestimated, or we may have slightly overestimated, but it is stil a reasonably correct estimate. Mr. UMSTEAD. Admiral, is the construction program at the present time, during this fiscal year, moving as rapidly as was anticipated at the time the estimates of the carry-over from 1937 into 1938 were made on August 8, 1937, before the deficiency subcommittee? Admiral Dr BOSE. I cannot offhand identify that total as to whether it is "Construction and machinery" or "Construction and machinery and armor, armament, and ammunition." I am assuming that it is the total of both. The actual unexpended balance on June 30, 1937-that is, the actual carry-over-was the sum of $68,328,653 for "Construction and machinery" and $30,855,926 for "Armor, armament, and ammution," or a total of $99,184,579. That is the corresponding figure to the estimated carry-over of $86,000,000. Mr. UMSTEAD. Then the actual carry-over was as stated by me a few moments ago, $99,184,579? Admiral Du BOSE. That is correct, sir. On July 1, 1936, we expected to do certain things during the fiscal year just starting; that is, to complete certain vessels by certain dates, which meant, of course, spending certain sums of money in order to carry out that program. What we expected to do, on July 1, 1936, as indicated by the progress report prepared by the Navy Department as of that date, was more than has actually happened with reference to those same vessels as of December 1, 1937. This, in general, indicates that there has been a delay in the completion of a large number of vessels, the delay running from a month or less to as much as a year or more in some cases. That is not a final delay in all cases, because many of the vessels are still being worked on; but there have been actual delays in completion for the completed vessels, and an indicated delay for the vessels that are still being worked on. The inference to be drawn is that there was a material delay in the shipbuilding program during the fiscal year 1937, which, of course, resulted in a larger carry-over from 1937 to 1938 than was estimated. As far as the shipbuilding program at the present time is concerned, we feel that we are making satisfactory progress, but there have been delays in the past, resulting in inaccurate estimates of expenditures and, of course, incorrect estimates of the carry-over. Mr. UMSTEAD. Admiral, is your construction program at the present time proceeding as rapidly as you anticipated when the estimates for 1939, now before us, were prepared? Admiral Du BOSE. In general, yes, sir. I might amplify that statement. In connection with the preparation of these estimates, we show you the total funds that we expect to have available for the fiscal year 1939, and we show you the estimated expenditures both in 1938 and in 1939. We still expect to spend in 1938 the amounts shown. We still expect to have the carry-over from 1938 to 1939 as stated. In other words, we do at the present time expect to expend the 1938 funds to the extent that we estimated in connection with the preparation of these estimates. Mr. UMSTEAD. Admiral, what was the total amount of the funds expended under both subdivisions of this appropriation during the fiscal year 1936? Admiral Du BOSE. The expenditures for the fiscal year 1936 from the appropriation "Replacement of naval vessels" under "Construction and machinery" were $52,009,867; and under "Armor, armament, and ammunition," $29,283,818. However, shipbuilding costs were also defrayed from the appropriation "Increase of the Navy, emergency construction" to the extent of $12,390,957 for C. and M. and $2,185,619 for A. A. and A. and from "National Industrial Recovery" to the extent of $70,667,883 and $16,001,372, respectively. Thus the total expenditures for shipbuilding during the fiscal year 1936 were $135,068,707 for C. and M. and $47,470,809 for A. A. and A or a grand total of $182,539,516. Mr. UMSTEAD. Admiral, at the time the estimates under this item were considered by the committee last year the carry-over was estimated at $56,000,000, and Congress was requested to appropriate $157,000,000 in addition, which two items would have made approximately $213,000,000 for the fiscal year of 1938. Of course it should be said that instead of providing $157,000,000 we provided $130,000,000 in new money. If the total amount had been provided and no change occurred in the carry-over figure you would have had available for this year approximately $213,000,000, would you not? Admiral Du BOSE. That is correct, sir. Mr. UMSTEAD. Which shows a difference of $25,000,000 between the amount of $213,000,000 which would have been available during this year on the basis of the 1938 estimates and the estimated carry-over at the time of the hearing and the amount which you now say will be expended this year. In view of the much larger carry-over than originally predicted, it is apparent now that the committee could have reduced the 1938 estimates by about $45,000,000, instead of $27,000.000. Admiral Du BOSE. That is correct, sir. SATURDAY, DECEMBER 18, 1937. FUTURE APPROPRIATIONS NECESSARY TO COMPLETE SHIPS NOW UNDER CONSTRUCTION Admiral Du BOSE. The following table shows the appropriations subsequent to 1939 which will be required to complete ships now under construction, and to complete ships of the 1939 program. APPROPRIATIONS, FUTURE YEARS In order to complete the ships now under construction appropriations subsequent to the fiscal year 1939 in the estimated amounts shown below will be required. Construction and machinery. Armor, armament, and ammunition. Total $180, 200, 567 108, 699,500 288, 900, 067 To complete the ships of the 1939 program, for which initial appropriation is requested herein, it is estimated that appropriations subsequent to the fiscal year 1939 will be required in the following Mr. UMSTEAD. Insert at this point, please, the latest progress of work report. |