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SCHEDULE 6-b-1. Equipment, fiscal year 1943 (estimated)

Location

Automo-
biles

Furniture,
furnishings,
and fixtures equipment

Other

Total

New York, N. Y.

Washington.
Baltinore, Md.
Bath, Maine.
Beaumont, Tex.
Bethlehem, Pa.
Birmingham, Ala.
Boston, Mass..
Chester, Pa..
Galveston, Tex..
Hoboken, N. J.
Kearney, N. J.
London, England.
Long Beach, Calif.
Los Angeles, Calif.
New Orleans, La.
Newport News, Va.

Norfolk, Va.
Oakland, Calif.
Pascagoula, Miss.
Philadelphia, Pa.
Quincy, Mass.

San Francisco, Calif.
Seattle, Washington.

Sparrows Point, Md.

Tacoma, Wash..

Wilmington, Del.

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Provision for new offices.

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SCHEDULE 7-b. Operating-differential subsidies, fiscal year 1943

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These operating-differential subsidy expenses are based on the assumption of a continuance of hostilities through fiscal year 1943.

SCHEDULE 8-b. U. S. Maritime Service, fiscal year 1943

For transfer to Federal Works Agency (Public Buildings Administration).

Construction of U. S. Maritime Academy. Construction and equipment at established training stations necessary for expansion.

$1,550, 000

$800, 000

750,000

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Miscellaneous expenditures by U. S. Maritime Commission incident to U. S. Maritime Service..

Total

$6,595, 205

100, 000

8, 245, 205

SCHEDULE 9-b. Cadet training expense, fiscal year 1943

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Pay for cadet officers and cadets.. $234,000

Instructors salaries on contract

basis (22, averaging $3,000 per annum)

Subsistence and quarter allowances for about 300 men, at $1.50 per day (includes heat, light, and water)

Transportation for cadet officers

and cadets (traveling expenses are estimated at 5 cents per mile from home to cadet school, on original appointment, and between ships and cadet schools subsequent to appointment).. Equipment, supplies, laundry service, and miscellaneous.. Specialized training on assignment to U. S. Coast and Geodetic Survey vessels (40 cadet officers for 3-month periods pay, at $100 per month; subsistence, at $1 per day). Correspondence courses: Compiling, printing, and grading.. Textbooks: For use of instructors and in libraries at schools.

Visual signaling classes in district offices: Equipment and supplies.

Contingencies.

Total.

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12,000

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246,000 66,000 167,000 35,000 15,000 5,000

1,000 535,000

GENERAL STATEMENT

Mr. WOODRUM. Do you have a general statement, Admiral? Admiral LAND. I have a statement, but it is rather long. It was prepared purposely to follow what has been done for the last 4 yearsto give a sort of a report of progress to you and your committee.

Mr. WOODRUM. Put that in the record and give us sort of an informal statement.

Admiral LAND. Yes; I think that would be preferable; because, as I say, this is more for general information and to bring the committee up to date as to where we stand. I think it is too long to read, under present emergency conditions.

(The statement referred to follows:)

The details of the appropriation items for the Maritime Commission for fiscal 1943 are contained, as usual, in the justification of the estimates, which has been filed for the record.

The Maritime Commission, as your committee knows, is in the midst of a very large construction program, initially related to the commercial needs of the American merchant marine, but primarily devoted to the national defense and constituting an important part of the Nation's great defense program. The members of this committee are familiar with the general character of our undertakings for ship construction, as you have given us authority from time to time to contract and have appropriated the necessary funds. Basically, our estimates for the next fiscal year have to do mainly with this great shipbuilding effort, and with the various other responsibilities related to national defense that have fallen upon the shoulders of the Commission. While part of the funds required under the emergency ship and lend-lease programs have already been made available for the fiscal year 1943, the present estimates cover requirements in the Commission's construction fund not otherwise provided for.

This is my fourth annual appearance before your committee. On each previous occasion I have tried to give you something of an over-all picture of the activities and accomplishments of the Maritime Commission during the preceding year— a sort of progress report-as the basis of plans for the ensuing year.

In reporting to your committee in 1938, the Commission outlined the beginning it had made toward clearing the way and setting the wheels in motion for the attainment of the objectives of the Merchant Marine Act of 1936. The emphasis then was on the rehabilitation of the merchant marine to meet the needs of water-borne commerce, with a weather eye out for the creation of a merchant fleet capable of serving as an auxiliary to the armed services.

Now that the United States is engaged in an all-out defense effort, the emphasis in merchant shipping has shifted from peacetime commerce to the needs of national defense.

In December 1939, I reported to you that the Commission, taking a realistic view of the war situation and its effect upon world maritime problems, had accelerated its construction program. As a matter of fact, this decision was made by the Commission in the early summer of 1939, before the war began. Whereas the Commission had adopted as its long-range program the building of 500 new ships at the rate of 50 per year for 10 years, the contracts which would have been let in 1940 were awarded in the fall of 1939. As of December 31, 1939, contracts had been let for the construction of 145 new, efficient, merchant vessels. Eighteen of them had been delivered and 15 others had been launched.

One year later, on December 31, 1940, the Commission had let contracts for 180 new ships, of which 90 had been launched and 62 delivered. During the year 1940, the construction contracts of the Commission had engaged the normal, existing shipbuilding capacity of the United States not otherwise committed.

In February 1941, the Congress authorized the construction of 200 emergency cargo ships. Under the defense aid program, inaugurated the following month, the Commission is authorized to build 300 additional ships. In August, the First Supplemental National Defense Appropriation Act, 1942, authorized and directed the Maritime Commission in effect to double its building program and provide for the construction of 566 more new ships.

When it is pointed out that on December 1, 1941, contracts and awards have been made for a total of 999 ships; that 272 keels have been laid; and that 154 ships have been launched, of which 123 have been delivered and are in servicethe figures speak for themselves.

Instead of 50 ships per year over the 10-year period beginning with 1938, the Commission has been called upon to provide for the construction of more than 1,400 new vessels, most of which are scheduled for completion before the end of the fiscal year 1943.

With a huge naval expansion program also under way, it is obvious that shipbuilding facilities had to be expanded to make room for such a program of construction of cargo ships. Provision was made, in the several authorizations and appropriations granted by Congress, for 131 new shipways, of which 117 will be in use by the end of calendar 1941, and the remainder by April 1942.

Attached to this statement are two schedules relating to our shipbuilding program. They include:

1. A summary of the ship construction program, as of December 1, 1941, broken down to show construction on the east coast, Gulf coast, Great Lakes, and Pacific coast. This schedule shows ships completed and ships under construction, including awards, and total tonnages covered by our three major programs.

EXHIBIT A. Summary of ship construction program as at Dec. 1, 1941

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NOTE.-The above does not include tonnage for 25 ocean tugs and 26 harbor tugs.

66358-41-17

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