-lam

SUPPLIES AM P'TATFRIALS

,-

",, . .this subcommittee of the House Committee on Expend-itures in the Executive Departments of the Government has been in -specting supply activities of the military departments for more tha na year. We looked initially at property disposal and came acros smany cases where property of considerable value to the Governmen twas being sold at the same time that similar property was bein gpurchased. Such a condition not only is wasteful of the taxpaye rs 'smoney but also deprives the intli .tary of resources that it needs t ofight effectively ; . .. .0

Savingss Amount , unspecified .

Solxrces T yr . Bonner, Representative from North Carolina in Hearing sbefore the Subcommittee of the Committee on Expend uresin the Executive Departments, House of Representatives ,82d Cong . ; lst Sess ., Field Conferences on F deral Su lyltitana ement (Military an

a e c iv le , p .

.

Item

Proposal

"Military Service s

"Uniforms Uniforms are

Require that, except for itemsconsidered personal property

needed for wear on return home sand are retained by the dia

outer uniform clothing be turn.charged individual,-,

ed in prior to separation . De-clare that clothing purchasedby personnel under a monetar yclothing; allowance system beconsidered Government property .",

Savingss $409000,000 annually (as sho= in table in source) .

Sources, Staff of the Joint Committee on the Economic Report ,Report of the Joint Committee on the Economic Report sSenate, 02d Cong .p 1st Sess ., January 1951 Economi cReport of the President, p._80 :

187-

"It would anpear that some of our procurement officers ar e

again going ho g"wild, for among other things, 1 am reliably advised ,

there is a current requisition for bids to furnish 6,100,000, plus ,

gallons of paint in 1-quart, 1-gallon, and 5,gallon containers, to

be delivered ~n 30, 60, 90 and 120 days, at a coat of about "15 ,,000, .-

000 0

'Can any man in the Army point out a possible need for all

that paint for such immediate delivery, and particularly in 1-rquar tcans, or, is it to be placed in warehouses against a possible late rneed only to have it settle to the bottom of the cans, solidify, a n

become valueless ; and did this purchasing officer make any check o n

the various varehouses and storage places to ascertain the amount of "

paint now on hand?

"Incidental to some of the major items, the press a few

days alto listed other army purchasess including 100 pipe organs at

a cost of : "1, 500 each, F)00 ;.0O'j poiLids of black pepper, 13,000,000 can

openers, 2,000,000 gal :.c.na of

1:2,000,000 pairs of boots ,58,000,000 yardo of cotton wibbing fc^ belts, enou ~ ,h to put a beltcompletely around the world 1t the Iouator, with sufficient surplu s

to give every man in the armed service a belt for each day in the weekand two for Sunday, "

Savings : Amount unspecified .

Sources Mr. Regan, Representative from Texas, Congressional

Record, February

28, 1951, p . 1755o

"

" . . .A review of the past 13 weeks discloses that the Defens eDepartment has contracted to buy fabrics, clu'ld .r.p arc? articles ofpersonal equipment at a total, cost of approximately c 605,000,000, 1 1

O This week the defense departments will place awards for3,400,000 gallons of antifreeze . Ordinarily this would suffice for1,750,000 automobiles . It rill take over 100,000 steel drums t ohold this quantity of antifreeze . ; thy this rush to make this bigaward with spring at hand? Congress must be kept informed . 11

9

•

9

1

w1UU»

"Two weeks ago the Navy let contracts for 1,935,490 gal -

lons of liquid insecticides . The cost was a mere ?1,710,394 . How-

ever, it would take approximately 40,000 steel drums to hold this

quantity of insecticide, and 5 freight trains of 50 cars each to

haul it to the warehouses, where it would have to be stored .

11 0n the same day that these awards were announced, it

was revealed that the Navy also purchased 11,03 1 3 000 cans of in-

secticide and 587,000 pounds of insecticide powder for a combined

cost of .'"770000 . Is there duplication there?"

f

Savings : Billions of dollars .

Source : Yr. Vursell, Representative from Illinois, Congressional

Record, March 5, 7951, pp. 2008-2009 .

EQUIPMENT

" ** .in the Philippines . . .trucks were bought for A200 o r

$300 each ; brought back into this country and sold to a Governmen t

agency for '3:500 each. Now this instance has just recently taken

place . "

Savings : Amount unspecified ,

Source: Mr . Bonner, Representative from North Carolina, in

Hearings before the Subcommittee of the Committee on

Ex-pen 2 ures in the Executive Departments, House o fRepresentatives, 82d Conn ; ., lst Sess ., Field Confer-

ences on Federal Supply I-iianagement, (MiliEary anr) V0 .4,x .4 ♦

ln . . .The . . .item calls for A25,00 0 3 000 to assist the mili -tary in their salvage and scrap program, and the selling; of equip -

ment which they no longer can use . . . .this,particular item was no t

even studied by the subcommittee . . .• llK

" . . .We have been conducting; a program trying to encourag ethe military to utilize more and more of their surplus propertyand have less for salvage and scrap . The three branches, the Army ,the Navy, and the Air Force have assured us they are going along

with that program . Judging from the items, it is true that the Ai r

Force is . In 1951 they had a budget of $4,900,000 . This year they

have cut it to 63,000,000 . On the other hand, the Army has done nothing

about it. They had !f,10,000,000 last year and they are asking fo r

9101000,000 this year . The Navy, on the other hand, is increasing it s

budget from sUM2 0 000 to $4s000,OQO, an increase of over 1x2,000,000 .

"So, applying the formula that tYe .Air Force has used to cutback its program, which they should do in the name of economy, we act -ually would be saving the difference between „10,000,000 and $6,000, -

000 for the Army . Cutting the Navy back from $4) 000,000 to the $1,000,-

000,which would be a similar cut, based on what they had spent in 19510and we have a total of Op000,000 of saving to add to the 08,000,00 0

that the military admit they do not need .

"That is the basis on which I have proposed cutting; this

figure from ?;25,000! 000 to 6lOsO00,O00• It is a program that th earmed services themselves say they will embark upon, and I sugges tthat the Congress implement that program by cutting this item ."

Savings : $15,Q00,0009

Source: Mr . Curtis, Representative from Missourtp CongressionalReecord, August 9, 1951, p. 9965*

n•stUnder the items which include funds for this purposeexpediting production. . the military asked for a total of apnroximately 93,000,000,000 to purchase tools, equipment and machinery t owhich the Government will hold title, but which will be used by th econtractors in producing for the various branches of the militaryservice . It is also going to be used to build or to rehabilitat eGovernment-owned plants primarily for the production of highly class -ified items .”

. . . . .

" . . .for machinery which is useful in peacetime, such asheavy presses, lathes, drills, and so forth, we need not spend s omuch money . bather, vie can provide incentive to concerns throug hdirect loans and accelerated amortization tax certificates . Thesame holds true for plant construction .

"After the last war a great deal of this equipment for whichwe spent a total of :;7,500,000,000 was sold at ridiculously low figure sto the industrial concerns which had used them during the war . Certain-ly some of this equipment must still be in existence, but this is , aproposal to spend $3s0004 000,000 more .

-190_

n t ,,1lhen this question was submitted to the House, the Hous eAppropriations Committee made a 10-rpercent cut in the budget reques tof approximately 61p100,000,000 for this purpose for the Army, butit did not make a corresponding cut in the one-billion-eight-hundred--

million-odd dollars requested for the Navy and Air Force . . . * 0

" I cannot see how our holding back 10 percent on thes e

appropriations will approciably reduce the number of aircraft produc-

edR , . . .0

{

11 . . .In that process 0183,000,000 would be saved . "

Savings : $183,000x000 .

Source : Mr. Douglas, Senator from Illinoi s ., Congressional Record!

September 12, 1951. p. 114181

" M •„A colonel over in the Europern command on his own ini-tiative, stuck his neck out., you might say # (volunteered . ► His

thought was accepted by the theater commander, and on September 15,attempt was initiated to recapture a lot of the property which .waswar-generated, still usable and in the hands of a German agency . I'llgive you an idea, one depot of 14 such depots--if you drove along-anyGerman road you couldn't miss them--this depot contained about 13,00 0

trucks, These trucks were purchased by various surplus men in Amer+ica, . . .Now in Kitzingen Depot, these people sold these trucks intothe hands of the surplus dealers, who imported into the United States .After their import they were repaired by the surplus dealers . Whobought them? The Detroit Ordnance, who in turn might conceivably'give them to you folks to be shipped back. The net loss to the Govern-ment might thus run into a sizable amount . 1Qien this is multipliedthroughout the world you can see what happens . . . ."

Savings : Amount unspecified .

Source:

Itr . Kennedy, Representative from 14assachusetts, i nHearings before the Subcommittee of the Committee on

Expenditures in the Executive Df~partments, House o fRepresentatives, 82d Cong ., lst Sess,, Field Conference son Federal Sup Ay 1-I6na cement, (Militar y-`in" neelatect vi es p p.

ft191-

" . . .The same story happened in the Philippines . The Philip-

pine Government which didn 1 t exercise very stringent controls on thismaterial left there for national rehabilitation, Trucks were sol d

for leg s say x200, imported into the United States, reconditioned

for about 0600 . The Atomic Energy Commission paid A3,500 for them .

Then these importers dispose of the remainder of them . The origina l

cost of the trucks was 1315 9 000 apiece . They had been reconditione dso that there was a net outlay of approximately 61,500 on the part

of the surplus dealer. He sells them to the Atomic Energy Commission

for "3,400 to -33,900 and then after that, he disposes of his remainde r

to the general public for approximately 115,500 . So when these storie s

get into the press the general awareness of the public is quickene d

and they begin to wonder . They ask, is the Army Reorganization Ac t

which was Passed, which all of them should know about, wielding ; into

the technical services a keen consciousness of the tax dollar? "

Savings : Amount unspecified . -

Sources Mr . Kennedy, Representative from Massachusetts, in Hearings before the Subcommittee of the Committee on Expend-=ures in the Executive Departments, House of Represen-tatives, 82d Cong ., 1st Seas ., Field Conferences on Fed-eral Supply Management A Qlilitary an o ate Activ t es

PP X314132,

"Yr . Scrivner . The Navy is a coordinate branch of ourmilitary forces . Why could the Army not be cooperative with the Navy?It does not stand to reason that the Air Force can get jeeps for $2,683 ,and the Army, $2,702, and the Navy, 03 0,069 . T W ieve the Navy saidthere was a winch on theirs, but the Navy told us that they did notrequire this water proofing and some other things that were on th estandard Army jeep$ too, but they told us that the Army said that theycould not break an assembly lane just to give them the jeeps withoutthat on there * "

"Now, will you 4Tolonel Kauffman7communicate with yoursister services, the Navy and the Army, and get us an explanation forthe record, of this situation which we have developed here? "

"(The information requested is as followss)"

«.192-

" I The comparative costs of the truck, 4ton 4 by 4, popular-ly known as the jeep, as included in the fiscal year 1952 budget es t-imates ) are as follows :- ,

Army $2x702Navy *--• 3p069Air Force .. 2 j 663

"The Navy jeep price includes a winch whereas the Army an dAir Force jeep does not . The three services include concurrent spareparts and first destination transportation in their prices, and al ljeeps have the same specifications, with the exception of,the Nav ywinch .

" t The Army price is $19 higher than that of the Air Force.:,

for the same comparable equipment . This is attributable to the fac tthat the Air Force price is understated, based on latest price quo'.tations from the manufacturer . It will , cost $2,702 delivered for ajeep without winch and with concurrent spare parts, and $3,069 fo ra jeep with winch . Therefore, within the funds requested for fisca lyear 1952 the Air Force for 4ieeps, it will be able to procure'a quant-ity of 1,572 only instead of the 1,583 requesteds t

"Mr . Scrivner . From this price it is quite evident thatthey can make a saving . This price is much lower, "

Savings: Amount unspecified.

Source : Mr. Scrivners Representative from Kansas, in Hearingsbefore a Subcommittee of the Committee on Appropriattions pHouse of Representatives, 82d Cong ., 1st Sess ., Depart-ment of Defense A ropriations for 1952, Part 4, Depart' -men o the iir3F rorce, pp. 19 4

"I have examined some of the items being procured for th eoffice forces . Among the interesting items was the purchase ofwooden office chairs at a , eost of $14 .70 each ; desks by thethousands for over $60 each, and more recently steel filing cabinetsat 'a cost of over A100 each .

"

"Last week the Navy purchased 170 steel desks fromNelson-Thomas &: Coo j 1125 First Street, San Diego, Calif .a for$33,672 . This means each desk coat the taxpayers 619847 .

_193-

"The Chicago Quartermaster Depot last week bought 2 $582

wooden general office desks from Avalon Products, Inc .y Los Angeles, .Calif . for $202 2064.94 or an average coat of $78 .25 each .

Ir[hy in an emergency must we buy so much expensive furni-

tupe and office equipment? "r

Savings : Amount unspecified. ,

Sourcel . Mr. Vursell ., Representative from Illinoisv Coongres.sional Record$ March 5, 1951 $ ppr 2008-,2009 .

LANDS AND STRUCTURES

11 4811•There is one item in the bill for a camp in my dis, -trict where the Government proposes to take large acreages ofland from farmers the Government now owns within 1 mile . . .ofwhere they intend to construct this railhead facilityy approximatel y100,000 acres of land. Now I have asked the 1'lar Department to useits own land. I asked the Committee on Armed Services to have th eWar Department look into using its own land-p land that the Govern-ment ownse . w and we could at least save that amount of land ."

Savings: Amount unspec~fied p

Source: Mr .. Abernethy Representative from Mississiprij, Congres-sional Record$ October 10, 1951., p• 13153.

"After the hearings Zon Military Public ''Irks project47had been completed and careful consideration given to the presenta-tions made the committee was of the opinion that the estimates hadbeen hastily made and were to some degree excessive . Upon the fact sthus considered the committee recommends a reduction in the reques tin 'the amount of ,A357to70,950 in the belief that by more carefulreview and better management the construction items for which requestwas made can be accomplished with,the funds herein reeommended .w.0

-194-

Savings: A357,070,950•

Source : Report of the Committee on Appropriationsp House o fRepresentatives, 82d Cong., 1st Sess ., Second Su

plemental Appropriation Bill, 1952,, P . U.

'The second appropriations bill is for construction of ne winstallations . It proposes to scatter tens of millions into th ebuilding of various Army camps, of airfields, and of other facilities .The armed services ignore the fact that less than six short years agowe had sufficient installations to train more than 15,000,000 me nto win Vlorld 'Jar II . Yet, today we are asked to build scores of newinstallations while so many,of the established ones are abandonedand allowed to grow over with weeds .

"In my own State of Indiana there are two fine air base sthat have been abandoned . I do not want at this time to ask forany favors for my own State, but across the river in Illinois i slocated one of the really fine airfields of the Nation-i-George Field, .It was constructed at a cost of many millions of dollars, Adequat ehousing is available . If needed$ the airplane runways can be ex• rtended to any desired length . Yet in the planning of the arme dservices groups this field is to be ignored-and abandoned with score sof others . ►►

Savings: Millions of dollars ,

Source : Mr . Bray, Representative from Indiana, Congressional.Record, August 16, l95ls pA5434 -

"Then there is an item of 816,000 2 000 for the buildingof more armories for the National Guard . Mr . President$ I submitthat it is not needed . Me have called up most of the organize dreserves anyway. There will not be much enthusiasm on the part o fmen to join the Organized Reserves after what has happened in Korea .The National Guard already has armories . The chief function of theadditional armories would be to provide a drill hall, one night aweek for the Organized Reserves, if we could get the m$ and to pro-vide a place at which to hold the Jefferson-Jackson Day annualdinner in the locality, to raise money at 8100 a plate. l►

Savings= , 816,000,000 ,

Source : Mr . Douglas, Senator from Illinoi s .9 Congressional Record, ,September 10, 151, p . 11324.

195-

iii

;

PROCUREMENT' j

p

"One of the most fertile fields for economy is in procure ;

i ianent costs . The committee feels that all the services should scrutinize

+procurement policies and seek to get a dollar in value for each dol-lar spente The committee deplores the practice, information of whic hIhas recently been made public, of improper relations between procure-

it ! ,Iment officials and representatives of firms from whom they procure! " I millions of 'dollars worth of >egtdpment # 'and so forth . . . ."' .

Savi, ss Amount uns cified.

Source:' Report of Committee on Appropriations, House of Repre--sentatives, 82d Cong., 1st Sess . .q Depirtment of DefenseApp riation Bill 1 52 t p. 5. .

•

"For example, with millions of pounds of Government+-ownedT

butter and eggs stored in caves around the country, it recently wasdisclosed that the Quartermaster General, has been contracting to buy sbutter and eggs on the open market at current high prices t

.,ere

`

was no effort at cooperation between the Army and'the CommodityCredit Corporation, which has been selling these same foodstuffs ata nominal sum or, in some cases, giving them away. Proper liaisonbetween Government agencies would have . preventedthis irnexcusab7.swaste'of ,public'funds .'t

![aster Amount -'unspecified .

Sour-ce : lir . Crumpacker # Jr. s Representative from .xndiana sCongressional. Record, Apri1. .$s_ 195le Pe A16934,

we go through the budget we shall find some interes t-ing items under what is termed expediting production . t They totalapproximately $2,9420000t 0001 $lslU0,0009000 for the Army, $732,000,000for the Navy, 51,109,000,000 for the Air Force . What are these items ?They are to be used to buy tools and equipment and machinery, to whichthe Government will hold titles but which will be used by the con-tractors in producing articles for the military. It is also to be usedto build or to rehabilitate Government,-owned plants, primarily for theproduction of highly, classified, •items .

Fbr

-.196 -

"I desire to emphasize that these appropriations of nearl y$3,000,000,000 are over and above any help which the contractor migh tget through (a) accelerated amortization, (b) a guaranteed V—loan pthrough section 301 of the Defense Produgtion Act, or (c) a direc t

loan from the RFC ."

• .

t'An analysis of the figures for the Air Force alone show' sthat the estimate of obligations for facilities and equipment unde r

1

the term 'expediting production $ for the fiscal years 1951 and 195 2amount to $1,889..000#000• But the firms receiving this equipmentfrom the Air Force for the production of Air Force items were als o

receiving $1$95x0009000 worth of certificates of necessity for accele r-

ated amortization and loan guaranties amounting to $18 7 * 796p000* ,plus

some small direct loans . '

"After the last war . . .the equipment was sold and plants wer esold to private companies for a song--fox very, very small amounts .The Government took a beating to the extent of billions and billion sof dollars . . .,"

Savings : $2,942a000p000.` .

Source : Mr . Douglas, Senator from Illinois, Congressional Record,Septeniber 10, 1951, pp. 11317, 11318 ?

" . . .in the City of Oakland, Calif ., there was an Army medicaldepot and a Navy medical depot ., The Navy depot utilized only twos-thirdsof its space . The Army depot utilized only 53 percent of its spaee wIn the Army, with an inventory of $8.,150 000 the operating costs were4695,0004 . or a percentage rate of about t2 percent. The Navy, withan inventory value of $1 39 367,A00,''had operating cosh of only $77 6* -000s or about 51 percent. . . ."

"The staff director of the Senate Committee on Expenditure sw ` in the Executive Departments .approved a report which stated : "

"Should the committee believe that action is feasible a tthis time, savings could be effected in the following respects :

111 . A substantial reduction in manpower and public funds ."2 . Savings could be effected in procurement, and the elim -

ination of excess inventories .113• Hoarding of material could be reduced,

197

E'limination of one agency competing against anothe rfor the same stems of supply .

115. Reduction in the cost of crating, packing, and handlin gof supplies .

116. Freight and transportation costs could be reduced mater -ially.

117. Coordination of warehousing facilities under unifor mcataloging could reduce storage apace for other purpos.es . 0

,.

Savings ; Amount unspecified.

Sources Mr . Douglas, Senator from Illinois ., Congressional Record$September 10# 1951, p . 11321.

"There is need for greatly improved programing of militar yprocurement. The subcommittee noted in its field surveys that largequantities of coffee, black pepper, rope, wool, clothing, and othe rsoft goods were being bought to fulfill stated military requirement swithout any serious regard for the impact of these tremendous purchase son the civilian economy. When military procurement officers in th e

•

field received orders to buy, they went out and bought--frequentl yduring periods of unusual scarcity and unfavorable seasons, at greatly .inflated prices,, and in competition with other military and civilia nagency buyer s

"Recommendations .-••

"Large-scale activities in the field of military procuremen tshould be improved through a realistic balanced program of schedule sof purchase based on advance planning and prior determination of remquirements, Purchases should be so distributed over fiscal periodsand geographical areas as to afford phased production and adequat ewarehousing geared to seasonal industries wherever they are affected .When practicable, purchases should be made for direct delivery fromsupplier to point of use to avoid excessive cost of Government war ehousing; and transportation and to utilize to the Fullest, existingcommercial facilities .

"Greater use should be made of single-purchase assignment swherein one service procures all items of a particular type or clas sfor all departments . There should also be maximum effort in the formof Joint and pooled operations with respect to all aspects of suppl y

j

management .

"A realistic program of Priorities in purchasing; should beestablished and made operative at the Department of Defense level s othat procurement can be geared to allocating materials, facilities ,and manpower , in keeping with the relative importance of the various

4198

programs for the national defense .

"Efforts to improve the supply accounting systems of th emilitary departments should be speeded up in the interest of achie v

ing efficient supply management ."

a Savings : Amount unspecified,

Source : , Sixth Intermediate Report of the Committee on Expendi «tures in the Executive Departments House of Representa-tives $ 82d Cong. $ lst Sees . $ Federal Supply Management*(Milita and Related Activit es $ Of 3!4 r

"Army technical services

"Progress in supply coordination is not satisfactory amon gthe technical services of the Department of the Army . There is com-petition in buying, overstocking, excessive use of personnel, space ,and facilities $ inflated costs and unnecessary burdens on industry$and further disruption of the civilian economy .

+

"Recommendations .

"The Quartermaster Corps should be made responsible for th eprocurement and distribution for the Department of the Army and Depart -ment of the Air Force of all commo n"use items not supplied by GeneralServices Administration . These functions should be closely coordinatedwith those of the Bureau of Supplies and Account s $ Department of theNavy$ and the General Services Administration .

"The Secretary of Defense should designate an appropriat eoffice to determine additional items for inclusion under the categor yof t common use r within and among the military departments * " '

Savings: Amount unspecified .

Souroes Sixth Intermediate Report of the Committee on Expen ditures in the Executive Department s $ House of Represent atives$ 82d Cong . $ lst Sess . $ Federal Supply Management $Military and Related Activities ,p .

-199-

Of . . .an intolerable situation is developing with respect tothe awarding of contracts for defense material . A few days ago mycolleagues from Iowa joined with me in protesting the awarding ofcontracts for certain strategic machinery without giving any consider-ation to the lowest bidder . Today I find another situation even mor edeplorable . A contractor at Ottumwa, Iowa, submitted bids for certai nimportant machinery after he had had samples of his work inspectedand hio plant appruved and nuw finds that while his bid is approxaanate -ly 50 percent lower than that of the successful, bidder, yet the con -tract was awarded to a concern at a tremendous cost to the Federal

t

Government . On this basis the whole preparedness effort will be vast -ly more expensive than it should be# . . * "

Savings : Amount unspecified.

Source; Pair . LeCompte, Representative from Iowa ., Congressiona lRecord? March 12, 1951 $ p. 2351 .

"Pro Lovett. ". . .We have just completed some rather interest-

ing studies on both the amount of time between the placing of an orde rand the end item and the amount of time between authorization and afirm contract . We have brought in a number of engineering farms fro m..the outside to make that type of study .

'Some economy I think can be. made in the field of managemen tin an internal sense in the Department itself, but I believe that closesupervision, close review of schedules and production and our plantinspection system is perhaps the surest security that we have againstthe extravagance of cost of any of these things . They are unusual „items . Now, where it is a common item in civilian life there $ ofcourse, we have an absolute check ., ”

Savings : Amount unspecified.

Source: Dir . Lovett, Secretary, Department of Defense, in Hearing sbefore a Subcommittee of the Committee on AnpropraatiMs82d Congo, 1st Sess . ' Department of Defense Appropriation sfor 1952, Part 1. p . 19* '

"The Procurement Subcommittee of the Armed Services Committeeof the House has held extensive .hearings on the procurement procedure sof the armed services . . .u

-200-

' . . .the subcommittee finds in many contracts that millions

of dollars are being wasted in defaulted and delinquent contracts ,

to say nothing of frittering away of the time of Government employee sk

both uniformed and civilian, who are spending their time in doing th e

work which contractors are paid to perform,,, . . "

Savings : Millions of dollars .

Source:

Report of the Procurement Subcommittee of the Committee

on Armed Services, Housc pf Representatives, 82d Congo ,

k

1st Sass., Investigation of Preaward Inspections By the

Services Ciso Consolidation Industries, lnc ., of

emphis p .

" t . .i .n one important defense area . . .they are paying; painters

$30 a day and. . . they are taking the'painters from all around th e

area ; . . .there is exorbitant coat, and waste and hoarding o f, manpower„ throughout this entire area, and that doubtless is going on all ove r

the Nation. That is why I reiterate that we ought to adopt bette r

business principles and hire the men necessary to give the Congres s

the information it needs . Such action followed through would save

our taxpayers billions of dollars . . .,”

Savings : Billions of dollars .

Sources Pr .. Vursells Representative from Illinois, Congressional

Revcod, October 10! 1951, p. 13167 . .

" . . .it was pointed out in one instance that the unit cos t''of planes in one country was very much more than the unit cost of thevery same plane in another country . The witness consulted the depart-ment and came back the next day with the report that an error had beenmade ; but he said not to worry about it because it would permit no tthe reduction of the appropriation, but the provision of more plane s

than had been requested . "

Savings : Amount unspecified. '

Source : IZr . Vligglesworth, Re presentative from Massachusetts ,Cressional Record, October 11, 1951, ppr .13273-13271 .

T201

SUPPLY MANAGD.IENT

"The studies and reports on military supply and procurementand military surplus property made by the Bonner subcommittee of the

Expenditure Committee . . .show the waste to be to the billions of dollars .-Anyone who is presently serving in the Armed Forces knowsfirst-han d

instances of unnecessary waste and inefficiency. . . "

Y

Savings : 'Billions of . dollars .

Source: 'Mr . Curtis, Representative from Missouri ., Congressional

Records June 22 ,2 1951s p. 7130'

"Pending the development of a fully integrated medica lsupply system for the Department of Defenses in the Department of theNavy all medical supply functions should be transferred immediatel yto the Bureau of Supplies and Accounts ; in the Department of theArmy, to the Quartermaster Corps .

"Medical supply missions in the fields of military procure .ment and distribution can be adequately administered by civilia npersonnel aided by a small medical advisory service group .

"Medical requirements presently under consideration forcivilian defense will place a heavy burden on the small group o fmanufacturers concentrating; on this type of supply# On the basis ofprior planning, total Government requirements, both military an dcivilian, should be scheduled in such a way as to permit orderl yproduction .

"A realistic plan of cress 'servicing of medical supplyshould be initiated at on. 3e as an additional step toward integrationin this field . lr

Savings : Amount -v-nspeci :iied . .

Source : Sixth Intermediate Report of the Committee on Expendituresin the Executive Depari mentsp House of Representatives ,82d Cong., lst Sess•, Federal SupplZ Management (Militaryand Related Activities),

,pM .

~

3F

~

-202-

"There is no justification for disposing of usable propertyat a fraction of its value, when great quantities of the same or sim-ilar items are being; purchased in other Government activities . Thesubcommittee has evidence of such practices in the case of militar yequipment transferred to the German Government which was later import -ed into the United States and resold to Gover=ent agencies .

' IEvidence of inadeoiate administration and abuse of th esale-exchange features of Public Law 152, Eighty-first Coagress, havecome to the attention of the subcommittee . There is reason to believethat valuable equipment is being; exchanged and being held for exchang ewhen it should be further utilized by the Federal Government . Thesale-exchange features of the law merit closer scrutiny by the Genera lServices Administration ,

IlRecommendatiens,, _

► In the utilization of military property, improved standardsfor screening as to what constitutes salvage, as well as more exac tstandards for determining; replacement of military equipment, shouldbe instituted by the Department of Defense .

"The Ilunitions Board should immediately examine the use tha tis being made of military warehouse and office space . There is nojustification in utilizing valuable space for the storage of obsoleteor inactive records, supplies ) and equipment . "

Savingss Amount unspecified .

Source: Sixth Intermediate Report of the Committee on Expenditure sin the Executive Departments, House of Representatives,, $2dCong t , 1st Sess ., Field Sup IZ Mana ement (Militar an dRelated Activities $ p +

SURPLUS PROPERTY DISPOSAL

"At the and of World Vlar 7:I, as a part of the general de-mobilization, the Government proceeded at a great pace to get rid o fso-called war surplus . A total of $27 .2 billion of property of allkinds was declared surplus under the surplus property laws . Of thisamount, $154 billion, on the basis of original cost, was sold for$4 .3 billion . Of the rest $11 .1 billion was transferred under author -ity of law to schools, municipalities and the like ; $0.3 billion ison lease ; and Vol billion is head in inventory pending further legi,s -,-lation. ;a

k

a

jo

-2o3-

"By July 31, 1950, it was evident, at least to this sub-committee, that current t surplus t disposal practices were dangerouslyout of date . The dark days of the Korean crisis were at hand, an dthe country had to start on a great program of remobilization . Yetthe subcommittee, born of that crisis, soon found a number of instan-ccs in which plan.- were going ahead for the I nurplk.- t sale of Govern-ment-owned property which „ appeared to be essential to our currentmobilization needs . . . .l►

►► . .•at least five plants which are part of the NationalIndustrial Reserve have beep sold or have been in process of salesince the Korean crisis . It further appears that one of thes e $ analcohol plant in Kansas City, Mo ., is in process of being sold with.out a national security clause but S-rith a guaranty by the purchase rto rehabilitate the plant as expeditiously as possible in order toplace it in condition to produce ethyl alcohol . ►►

' l . .•Government-owned property having a defense potentia lshould not br sold as surplus if there is any foreseeable government -al use for such property. The Secretary of Defense has expressedagreement on this point, but on the basis of talks with his subordin-ates we have not been satisfied that adequate screening; steps are be-ing taken to prevent the t surplus ► sale of the same kinds of materia lthat the Defense Department,is now . buying or will be buying in thenear future . "

Waste: Amount unspecified .

Source : First Report of the Preparedness Subcommittee of the Com-mittee on Armed Services, Senate, 81st Cong ., 2d Sess . $Interim Report on., Surplus Pro2orty, Ruhberi September 14p90., P13 • , 3,1 $

OFFICE OF THE SECRETARY OF D ++,+"NSF

SALARIES AND EXPENSE S

'►rir . H : ihon . [e are at the beginning of the fiscal year andyou have not employed these people whom you aro requesting and thechances are that you could not employ them ovprniglit . I do not se ehow you can figure on `5 ,,100 a year piece 7for those for whom youare requesting; funds for the fiscal year 197x2 program .

..204

"Mr . Loftis . The dollar computations, . . .are

based upon the equivalent full man-years of personal service and no t

upon the ,yearend strength . It is not an arithmetical multiplyin gof the number of people who would be on the rolls times $5p100 o

11 19r . Mahon, If you asked for 400 new People as of July 1 p

1951, and you expected to pay them $65 # 000 per year apiecep that wouldbe $2 million ; and if those were eliminated ) a .reduction of that

order could be made?"

Savings : Approximately 62,000,000 .

Source; Mr, . Mahwip R7presentative from Texas # in Hearings beforea Subcommittee of the Committee on Appropriationsx Hous eof Representativesp 82d Congop 1st Sess .p Departmentof Defense A pro riations f 952p Part la p . •027

Item

Proposal

"Military Services

For those below a specified age ,say 60p who are not retired fo r

"Pensions : Members of the

physical disability, pensionsArmed Forces can in some

might be reduced . Some pensioninstances retire after a

may be necessary because of needspecified amount of service,

for keeping; Armed Forces young *sometimes as little as 20

If pensions of persons now re -yearso A man who gets out

tired are to br reduced., a re-in his forties can often earn a

qui.rement for reapplication forgood income in addition to his

peno~on would be necessary . "pensionp toward which he conestributed nothing .

Savings: $8265 ) 000) 000 (as shown in table in source) .

Sources Staff of the Joint Committee on the Economic Deport sReport of the Joint Committee on the Economic Report sSenate ) 82d Cong ., lst Sess ., January 1951 Economi cRe ort of the President ) pr 87 .

-2o5-

"This practice of retiring military , personnel with payduring an emergency, despite the fact they are fully qualified fo rfurther duty., is a waste of money and manpower, since it not onl yrequires two men to fill one job), but it 41so places bath of them onthe Federal payroll•ll

"Assuming that the Armed Forces will retire personnel a tthe same rate as during the period from June 25, 1950P to March 1,1951s one can readily see that if my bill, which provides a 3-yearmoratorium on nonphysical retirements, should become law, the Ameri "can taxpayers will be saved $2p723, 6.13.21 in a 36-month period ♦ n

Savings : $2s723s613.21 in a 36-month period •

Sources 11r. Van Zandt, Representative from Pe'nnsylvaniap Congress-ional Records May 141951, p . .42862 ,

-n

-206•.

DEPARTMENT OF THE ARMY

PERSONAL SERVICES

11 . . .the lower entering strength for the fiscal year 195 2will probably result in fewer man-years being developed during fis-cal year 1952, and consequently result in a,saving in dollars . "

" . . .there can be made in the Army budget a saving of ap -proximately 19,378 man-yooars, or a dollar savings of approximately3$,llt1,000 . This saving can be made without any detriment to Arm y

programs as we see it at this time . '

Savings: $38 j141,000 .

Source : General Decker, Chief, Budget Division, Comptroller o fthe Army, in Hearings before a Subcommittee of the Com -mittee on Appropriations, House of Representatives, 82dCong ., 1st Seas ., De art=nent of Defense k ro riat'ionsfor 1252, Fart 21 . Department o the. Army, p• 0

r

" . . .although we are engaged in what is certainly only aminor war, comparatively speaking, there are in the Pentagon em-ployees in administrative positions in the ratio of 1 to 100 no was compared with 1,to 5p0.at the height of the greatest war in .human history. . . . °

° . . .there is overstaffing rat the pentagon "

11 . . .what I am trying to do is to cut out one of the majo rdiseases of the military system, which is the tendency to expan dpersonnel in the upper echelons . The amendment rto reduce civilianpersonnel in the Department of the Army at Washington, D . C ., by

•

5;g which I suggest would save about $3,354so00 --peanuts, to b esure, but it would release over a battalion . The amendment wouldaffect civilian personnel, and its adoption would mean the releas eof the equivalent of over a battalion of people to more productiveservice . n

Savings : O,35s000 .

Source: Mr . Dpuglas, Senator from Illinois, Congressional Record ,September 12, 1951 0 pp . 11416, il.4177

" . . .There is a kind of work in the support of the armedservices that can better be done by civilians at less cost to th eGovernment . You can employ women and you can employ men who ar eclassified as unfit for military duty, and they can do that wor kentirely satisfactorily . Certainly there ought to be included inthis report, when it is made, a statement of the difference inactual cost to the Government as between using military personnel, ,including th ey pay and allowances, and the benefits that accrueto a person who is in the military service, the ultimate benefits ,pensions, and all that sort of thing, as compared to employingcivilians . x am sure you will find in the end that the taxpayerssave money by employing the civtlians . "

Savings : Amount unspeoMed .

Source : Mr . Hayden, Senator from Arizona, in Hearings befor ethe Subcommittee of the Committee on „ppo-W-tations ,Senate, 82d Cong ., lst Besse .*, DepartmentDefenseAppropriations for 1954, p, 6

--~

11

1

SUPPLIES AND 14ATERIALS

" . . .The Army has purchased a total of 68,000,000 ca nopeners since the start of the Korean campaign one year-ago .There are about a million and a half men in the Army .

"Army Ordnance recently purchased 6,000,000 gallons o fpaint in quart and gallon cans . This was a full year's requirement ,but the Army sought delivery in 60 days . This huge order fo rpaint in civilian-size cans, rather than in 5-gallon cans, wascritized by paint suppliers, and admitted as untrise by the Army •

"The Army set up a requirement of 4,636,000 web belt sfor the year 1951q This is three belts per man, although onl yone is issued per man per year . Its 1951, requirement forcombat boots was set at 11.,753x000 pairs $ although the totalconsumption was estimated at 1,800,000 pairs .

"During the nine months from July 1950 through March1951 the Quartermaster Service bought 1,,917,000 pounds ofblack pepper .

-208-

"Last January the Quartermaster Service bought5,0009000 pounds of oleomargarine at 251 cents a pound. At thevery same time the Department of Agriculture was selling 5,500j000pounds of surplus butter to Italy for 15 cents a pound .

"Military l soare r buying not only precipitates gener4y.

shortages .of consumer goods $ but naturally forces up the price o fgoods thus bought . For exampl.ea since June 1950 the price o farmy blankets has risen from $7 .82 to $16.00 each; combat bootsfrom $6.03 to $llo63 por pair ; army mattresses from 07 .83 to

'

3,42 each ; winter drawers from $1 #55 to 04,15 per pars and soon down a long Ust.11

Waste : Amount unspecified ,

Source : Alvin A . Burger, Research Directors Council of StateChambers of Commerce* "The Federal Bureaucracy an dthe Fight Against Inflation.," Federal Spending Facts ,Bulletin No . 85 9 June 25, 1951s To •

" ., .Where doe's the idea come from that you need all thi spepper? Pepper is just an example . There is coffee in there too .They say you all have got enough coffee to take care of an Armyof 100000$ 000 men. These are accusations that they carry in thepapers . They are none that we are making . We are trying to clearthis up and get an understandings Do yqu all have,a lot ofcoffee in storage?11

Savings : Amount unspecified.

Source: Mr . Carl T . Curtis4 Representative from Nebrask a$ inHearings before the subcommittee of the Committe eon Expenditures in the Executive Departments $ Houseof Representatives, 82d Cong . ,, 1st Sessps FieldConferences on Federal Sup 1y Management tearyan ela e o v es p.

-209-

OFFICE OF THE SECRETARY

Civilian Relief in Korea.

" when anyone says or attempts to say that the military ibudget is,uatouchable, that simply is not so, "

" . ..,in connection with the brief examination we made of th emilitary items .$ one item alone which stood out was for $x100,000;,000

'

for relief .in Korea. For whom was that relief to be provided? It wa sin substantial part for the relief of the North Koreans, whom we wer efighting, and who were killing American boys day by day ; and includedin that amount were items for such things as rebuilding municipa lelectric-light systems -or rebuilding various building projects inNorth Korea. We even found included in that total an item for th epurehaae of diapers for North Korean • Communist children . Those wereactual, items in that budget request

"So when we find such items'as that included in a mili-tary budget., I say it is not .an untouchable budget ; and thereforewe can well survey the entire .situation. I have cited that cas eonly :as an example.. I believe, therefore, that the budget thi s

„ year should .have the personal, attentIon of every Senator, r►

Savings. Amount unspecified.

j

Source.: Mr. Bridges Senator from New Ham shire, CongressionalRemordr : February 40 .1 .9511, P . 12 .

GENERAL ST,P,FF'

h

Inter-American Relations,

i ,i

",. .I doubt the need for having quite as many members o nsome of these missions as we .sometimes find in the various countries .It is a matter that should be studied by the military in an effor tto reduce the number. I am convinced in my own mind that the cos thas not always been justified, judged by-the results . .,,I do hopeyou will take it up with some'oody with a view to perhaps gettin gdown a little bit more toward the earth in some of our missions ,particularly as they relate to size. It could result in some sub-stantial savings in .the budget."

n f

-210-

Savings : Amount unspecified .

Source : Mr. Scrivner, Representative from Kansas, in Hearingsbefore a Subcommittee of the Committee on Appropri -ations, House of Representatives, 82d Cong ., 1st Sess . ,De artment of Defense A Uro riations for 1952, Part 2 3Department o the Army, p. 1Q 9 ,

FINANCE CORP S

Finance Service .

°The committee recommends a reduction of $9,00 0 0000 inthe request for travel funds on the basis that the need for trave lis not sufficiently policed and that reductions can be made if bette rmanagement is applied to the expenditure of these funds, "

Savings : $9,000,000.

Sources Report of Committee on Appropriations, House of Repre -sentatives, 82d Cong ., 1st Sess ., Department of Defens eAppropriation Billy 1952 3 p . 11 .

QUARTERMASTER CORPS

Quartermaster Service .

"The committee recommends an over-all reduction of$20,~51,000 in this request for appropriation because of the neces -sity for greater economy in procurement of items such as offic efurniture, various types of equipment and supplies and through th ereduction Qf a number of personnel ."

-211-

Savings : $20051s000.

Source : Report of Committee on Appropriationss House ofRepresentatives, 82d Cong . $ 1st Sess, $ Departmentof Defense A ra riatioa Bill 19,52 p, ~. •

"The appropriations Incidental. Expenses of the Arrays

M for which $198 .9 914 $ 000 is requested is to provide the operatingpersonnel for the Quartermaster service; disposition of remains r

incidental operating expenses ; chaplains $ activities ; recruitbg

expenses ; education of dependent s$ and research and developments .,,•!)

"e ..The „greduetion of $2 0 000,000 has been made withthe thought that greater economy in operation could be achieved

and that this amount can be saved through better management.”

Savings; $2s000,?000 .

Source: Report of Committee on Appropriations ' House of Repre.-sentativess 82d Congo $ lot Sessos Department ofDefense A ropriation Bill 1952, ppr 1

+ l . .,to point out an examples take this military procur e-

ment program. We are not making a plea for additional fundsbecause we save moneys but as a matter of fact under our progr= 0we have run into case after case after case where we have show n

the military where we could get the items for less . In one cases

in Iowa we saved them $V1.30sA00. That happens frequently on thebasis oI our continuing checks on these contracts in connection

with our hearings . We found a cases for instaneep, where a grillthat the Quartermaster Corps was buying norm ly sold for $19.95.The Quartermaster Corps was buying them for 51 apiece . We foundexamples of demineralizerss where they were paying well over th eprice that they could get them from other manufacturers, Theywere buying water purification tablets . They had been buyingthem under an advertised•4bid basis at approximately 4 cents abottle, Then they went over and made a negotiated contract withone manufacturer and started to pay six cents a bottle . Thatinvolved three milltor; bottles $ and the total,lass to theGovernment was quite heavy,►

Savings ; Amount unspecified.

Sources Mr . Henderson, Staff Directory Senate Small BusinessCommittees in Hearings before a Subcommittee of theCommittee on Appropriations$ Senates 82cl Cong . ,J,st $ease, Legislative Ap ro i dos 1.959p p• 990

-212-

"Clothing issue for the trainee at Fort Jackson was

generally goods although there were shortages of various item s

all the time. One day it might be jackets OD, and the next da y

it might be combat boots . Many substitutions had to be made .

For examples many men initially received footwear other than th e

standard issue . There were not enough overcoats to go around

w.d as an expedient all overcoats were held in company supplyrooms and issued for training as needed . The shortage of clothingapparently was not the fault of the local commands but was due

to the failure of central supply sources to fill requId tions

submitted by the post . Even though there was no real hardshipdue to this conditiono it did make for a loss of time both t othe trainee and achtnistration personnel . Also the issue of sub*stitute items that had to be altered was costly in dollars and

manpower. lt

Waste: Amount unspecified.

Source: Tenth Report of the Preparedness Subcommittee o f

the Committee on Armed Services$ Senate $ 82d Cong; s

Ist Seas 's Fort Jackson, *S . Go April 26p, 1951p p0 5 •

# #

"This problem of cooperations or lack of its was high *lighted early this year by publicity quoting a Department o fAgriculture official, who accused the Array of wasting taxpayers 'money in purchasing dried eggs for troop rations, The release

stated that the Auzy was paying 91.39 per pound for dried eggsfor troop rations ,.on the open market ' when ' it could get bettereggs from Governinent"owned stocks for $1,17 a pound.! "

Savings : Amount unspecified.

Source: Thirty-second Report of the Preparedness Subcommitte eof the Conndtt`- on Armed Services., Senate, 02d Congo ..lot Sass .' Standardization of Specifications andxnspections p

o ur

o q

es, p . .

"A few days before the end of fiscal 1918, the purchas elist of the Army Quartermaster's office in Chicago included nin etablecloths and three dozen napkins• $267 .45; one white rayon(woman's) slip ., $16,2$; one white nylon slip * $48 ; one (woman's )bathing suit $16.50; all for 'experimental purposes . '

f

'The napery dressed tables at which high brass$ ofthis and other countries $ sampled the Quartermaster's new rations *The AM saw no incongruity in using $267 worth of linon as abackground for testing field rations . Nor was it embarrassedthat a WAO in a $46 nylon slip would be a vexy well drepspd-WAC

'

indeed.

IlAnother yearend order from the same office liste d

$23 .92646.93 for athletto equipment* including 2,621 golf clubs$ .30 .*000 golf balls . Another purchase order was for : sets offishing tackle at $520 each. 1 1

Waste= Amount unsj . -'ied 4

Sources Earl B .. Steele $ "Holes in Cur Public Purses "Nation's Business, Volo 39p No * 2p February,# 1953-p

"This is an item that kind of struck me . You seem tobe playing up to the ladies• You have nurses' quarters furniture p$765 a seta and bachelor gffiperst quarters furniture' $110 a set .How do you get that way? I recognize you have to play up to thensome $ but that sounds a little like soaping them up prett;rliberallyon

Savings' Amount unspecified .

Sources Mr . Tabery Representative from New York ., inHearings, before a Subcommittee of the Committe eon appropriations$ House of Representatives $82d Congos .lst Sessop D

tment of Defense .Appropriations for 19 . j Part;' p DeparM'Zn'T of

r

W214-

SIGNAL CORPS

Signal Service of the Army .

"After careful consideration of the requirements of th eSignal Corps the committee recommends a reduction of $30pO00sOOO sof which $15,000x000 is to be applied against estimated civilia npersonnel requirements ., and the remaining 01 .5#000..000 against

the procurement and production program.`, Testimony before the

committee indicated that the Signal Corps had on the payroll a s

of June 30, 1951s 37,884 civilian employees . The request con*tained in the budget estimated 49,p509 man»years of civilia n

employment for fiscal year 1952, an increase of 11,625 over-theending strength for fiscal year 19519 'The committee'is awar e

of the heavier workload and the particular need for addit$ow a.Inspectors to keep abreast of the procurement programs bat due

to failure to rearult the personnel anticipated by June A 1951,the committee is of the opinion that with a more realistic program

brought about by rescheduling of proposed procurement del~verle sand the exercise of careful management over civilian employmenta reduction below the budget estimate of 3p000 man-years o f

civilian employment can be made without injuW to the progranoft

Savings ; $30i000,000 .

Source : Report of Committee on Appropriationsp House-o fRepresentatives# 82d Cong's lst'Sesse-S, De artmeOof Defense A o riatlon R131119 2 pr

" WAT

MEDICAL SERVICES MEDICAL AND HOSPITAL DEPARTMENT

IlThere is also $ a clear indication from'our invest$ga-tion that some phys cal examinations by preliminary examinin gagencies supplying traimes to Camp Chaffee are either too per -functory or totally Wealiptia . These agencies should beep inmind that sending an unqualified man to the Arml►' causes an insvitabl.egreat waste of money and time by-itha•military and is mostr`unfairto the man 1Imse3'e n

Waste :- Amount unspecif9,ed*

Sources Eleventh Report of the Preparedness Subcommittee ofthe Committee on Armed Services 82d Cong•, let Sees•$O

Ch l

4, Apr# 26, l95l, gyp• jp-g?

1. . za.5-

CORPS OF ENGINEERS

Engineer Service .

ItThe committee recommends a reduction in this requestfor appropriation 4Engi.neer Field Trainin1 in the amount o f$352000;0000 of which $202000yfl00 shall.be applied against theestimated civilian personnel rcquirement . The budget estimate scontained funds for an average number of 88,683 civilian employees yand there was on the payroll as of June 30 t~ 1951; 720-197 . Anincreased number of personnel will be regUred during the year #but in the opinion of the committee the estimated requirementmay be reduced by some 6p000 man years of employment withoutinjury to the program. An additiona9-reduction in the sum of015,000#a00 is recommended to be applied to the various item sunder the appropriations it being the opinion of the committeethat such reduction can be made through better managemert .4 andreochediAlM projects without injury to the prograiAo ll ,

Savings2 $35:000, 000 `. , .

Sources Report of the Committee on Appropriations] Hous eof Representatives,.82d Conga $ lot seas .$ Departmentof Defense. . A ro riattbn Bil 3,954 - pp. 37-Me,

Military Construction

"From 1946-to June 1949 practically all the constructio nwork - carried out in Alaska was on a co st-plus-a-fixed»fee bast a iwith three reputable contractors working together in a jointventure to carry on the construction activities .. Originally Itwas estimated that this fixed-fee contract would approximate$25a000A009*- Before it was completedp however $ an undeterminableamount had passed through this contract totaling over $100,000P.000 .: 'The suboo mitftee has been unsuccessful in determining the accurat eamount that was spent under this contract ,

I'The subcommittee is aware that this contract was Qan-celed in 1949'.. Forthermores - it found no evidence of fraud' or badfaith on the part of the contractors or the Government employeesinvolved. It did$ however, gather a distinct impression-p9'loosesupervisionp lax admini.atrati,ony. and poor results .

"Tt is quite probable that one of the causes of the highacct of construction in Alaska can be charged to the operationof the'OPFF contracts, f .Thio procedure was charged is 4u3y 1949