Mr. ANDREW. The basis of the Comptroller General's decision is that there was a charge for these men for rations, for whatever men were ashore, and at the same time they were getting $3 or $3.10 a day. Admiral MORRIS. Yes, but the value of the ration was deducted from the $3 given the man.

The CHAIRMAN. Gentleman, what is your pleasure with respect to these two accounts?

Mr. DREWRY. I move that they be reported favorably, like we did others like them.

The CHAIRMAN. If there be no objection, that will be done, and Mr. Drewry and Mr. Gambrill will care for them on the floor of the House.

Mr. GAMBRILL. I will be glad to do it, if the gentlemen from Georgia (Mr. Vinson) will allow section 15 to remain in the bill. It amounts to only $49 and we have adjusted other cases in the same manner. Mr. VINSON. If the committee votes the others in, I will agree to that.

Admiral CAMPBELL. The Comptroller General has called attention to the fact that the amount $554.72 shown in line 20, page 7 H. R. 9352, should be $544.72.

The CHAIRMAN. Next is section 18, which provides

That the General Accounting Office is hereby authorized and directed to credit the accounts of Lieut. Edward Mixon, Supply Corps, United States Navy, in the amount of $387.73, which sum represents overpayments to civilian laborers at the Helium Production Plant, Fort Worth, Tex., during the first quarter, 1924, disallowed by the Comptroller General in the final settlement of the accounts of said officer.

Explain that, Admiral.

Admiral MORRIS. This covers overpayments caused by crediting laborer's pay from July 1, 1923, to August 6, 1923, at the rate of 41 cents an hour instead of 34 cents an hour, specified in the schedule of wages effective July 1, 1923. It seems that the schedule of wages was not received until after payments had been made. When the wages schedule was called to the attention of the disbursing officer he immediately took this matter up with the department, but, unfortunately for him, the matter had got noised around the place this reduction in wages-and before he received a decision from the department many of the men had quit and gone elsewhere. Therefore the disbursing officer was unable to fully recover the money he had paid out erroneously. The original amount of overpayment was $680.68 but this officer collected all of that except the $387.73.

Mr. WOLVERTON. The rate of pay was proper until July 1, 1923, when the reduction took effect, but the disbursing officer did not get word of the reduction until August 6, therefore between July 1 and August 6 he made payments represented by this $387.73, for which he is now seeking relief?

Admiral MORRIS. Yes.

Mr. WOLVERTON. If the new schedule was effective July 1, why did not this disbursing officer receive seasonable notice to that effect? Admiral MORRIS. The Navy Department itself sends out these wage schedules with the idea of reaching all agencies affected before they go into effect. It seems that the commandant of the district received this notice but did not transmit it to this disbursing officer until August 6, 1923.

Mr. WOLVERTON. Therefore this disbursing officer is not at fault, and he should not be held responsible for something concerning which he had no seasonable knowledge. The commandant of the naval district was at fault for not advising this disbursing officer of the change effective July 1. Having received the notice on August 6, this disbursing officer moved promptly by reducing the wages and communicating with the Secretary of the Navy. It seems to me that the disbursing officer did all within his care to protect the Government, and we should not hold him responsible.

Admiral MORRIS. The wage schedule which had been maintanied at Fort Worth prior to July 1, 1923, was considered necessary to conform more nearly to the wage schedule of private firms in Fort Worth and vicinity and to account for the difference in living between Fort Worth and New Orleans and Pensacola.

Mr. LEECH. Did the men have any knowledge prior to August 6 that they would be paid at the different rate on and after July 1, 1923? Admiral MORRIS. No.

Mr. LEECH. They were paid 41 cents an hour up to August 6, although that rate should have been reduced to 34 cents an hour on July 1, and no notice was received about the reduction until August 6? Admiral MORRIS. When they heard the matter was being taken up with the department for instructions, they began to leave that employment.

Mr. LEECH. But August 6 was the first notice they had that their wages had been reduced?

Admiral MORRIS. That is the first notice.

The CHAIRMAN. Gentlemen, what is your pleasure with respect to this bill?

Mr. WOLVERTON. I move that it be favorably reported.

Mr. VINSON. I second the motion.

The CHAIRMAN. That will be done. Mr. Leech, assisted by Mr. Wolverton, will please take care of this item on the floor of the House. Next is paragraph 19. It provides

Section 19. That the General Accounting Officer is hereby authorized and directed to credit the accounts of Capt. George S. Seibels, Supply Corps, United States Navy, in the amount of $2,778.01, which sum represents payments made to Aviation Chief Machinist's Mate Willie Perry Conway, Fleet Naval Reserve, for retainer pay during the period from October 1, 1922, to June 30, 1926, disallowed by the comptroller general in State of Differences M-23367-N, dated August 4, 1927.

What about that?

Admiral MORRIS. This section and sections 20 and 21 are alike. The CHAIRMAN. There are no sections 20 and 21 of this bill. Admiral CAMPBELL. The department sent the cases of two more officers to the committee and it was suggested that they be made sections 20 and 21 of this bill.

The CHAIRMAN. But we have not received them, or they are not before the committee.

Let us not consider this section 19 now, but wait until we receive the other two cases.

Let us proceed to other business.

(Thereupon at 11:55 o'clock a. m., Tuesday, February 5, 1929, the committee proceeded to other business.)

LETTERS FROM THE SECRETARY OF THE NAVY AND THE SECRETARY OF WAR RELATIVE TO H. R. 11922, LATER INTRODUCED AS H. R. 17055, TO AUTHORIZE THE SECRETARY OF THE NAVY TO LEASE THE NAVAL DESTROYER AND SUBMARINE BASE, SQUANTUM, MASS.

DEPARTMENT OF THE NAVY,

OFFICE OF THE SECRETARY,
Washington, February 6, 1929.

The CHAIRMAN COMMITTEE ON NAVAL AFFAIRS,

House of Representatives.

MY DEAR MR. CHAIRMAN: There is now pending before the House Committee on Naval Affairs H. R. 11922, "To authorize the Secretary of the Navy to lease the United States Naval Destroyer and Submarine Base, Squantum, Mass." The committee has held hearings on the bill but has not yet reported the bill out.

In view of an agreement reached on January 29, 1929, between the Secretary of the Navy and the Secretary of War, a copy of which is inclosed, whereby the Navy Department agrees to transfer a portion of the property to the War Department, it is recommended that the proposed legislation be so amended as to extend to the Secretary of War the authority to lease such portions of the property as may be under his jurisdiction.

A suggested draft of amended bill is transmitted herewith.
Very respectfully,

CURTIS D. WILBUR,
Secretary of the Navy.

WAR DEPARTMENT,
January 29, 1929.

MY DEAR MR. SECRETARY: I inclose herewith copy of our agreement in accordance with our conversation with the President regarding the property at Squantum, Mass. As soon as the transfer is accomplished, I shall be glad to urge the chairman of the Naval Affairs and Military Affairs Committees of the House to pass the bill authorizing the leasing of the property in accordance with our understanding.

The details in regard to the revocable license can be worked out later along the lines of the Bolling Field license.

I believe that this will settle the matter satisfactorily to both departments and to the best interests of the Government.

Very truly yours,

Hon. CURTIS D. WILBUR,

Secretary of the Navy.

DWIGHT F. DAVIS,

Secretary of War.

WAR DEPARTMENT, Washington, January 29, 1929. The Secretary of War and the Secretary of the Navy have this date agreed as follows:

1. The Navy Department hereby agrees to transfer to the War Department the southwesterly portion of the United States Naval Destroyer and Submarine Base, Squantum, Mass., outside of the area now occupied by buildings, and including such small portions of the buildings and area as may be suitable for shop and hangar purposes, and approximately as shown on a map entitled "The proposed airport at Squantum, Quincy, Mass.," dated April 4, 1928, and hereto attached. 2. The War Department agrees to provide suitable rail and highway access to the building area at the expense of its appropriations, which shall be available for the use of the Navy Department.

3. The War Department agrees to grant a license to the Navy Department, revocable at the will of the Secretary of War, upon six months' notice in peace time, and in war time upon such notice as the public interest warrants, authorizing the Navy Department to use a portion of the reservation hereby transferred, so long as operations carried on at the field by the War Department are not interferred with by such arrangement, reserving in the War Department complete authority and jurisdiction over the entire field hereby transferred.

DWIGHT F. DAVIS,

Secretary of War.

CURTIS D. WILBUR,
Secretary of the Navy.

A HEARING ON THE BILL (H. R. 16887) FOR THE RELIEF OF CAPT. GEORGE S. SEIBELS, SUPPLY CORPS, UNITED STATES NAVY

HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE ON NAVAL AFFAIRS,

Monday, February 11, 1929.

The subcommittee this day met at 11.15 o'clock a. m., Hon. Clark Burdick (chairman) presiding.

Mr. BURDICK. The next bill for consideration is H. R. 16887, for the relief of Capt. George S. Seibels, Supply Corps, United States Navy. A copy of the bill reads as follows:

[H. R. 16887, Seventieth Congress, second session]

A BILL For the relief of Capt. George S. Seibels, Supply Corps, United States Navy

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the General Accounting Office is hereby authorized and directed to credit the accounts of Captain George S. Seibels, Supply Corps, United States Navy, in the amount of $2,778.01, which sum represents payments made to Aviation Chief Machinist's Mate Willie Perry Conway, Fleet Naval Reserve, for retainer pay during the period from October 1, 1922, to June 30, 1926, disallowed by the Comptroller General in Statement of Differences M-23367-N, dated August 4, 1927.

Mr. BURDICK. Let us now hear from Admiral Morris.

STATEMENT OF REAR ADMIRAL CHARLES MORRIS, SUPPLY CORPS, UNITED STATES NAVY, CHIEF OF THE BUREAU OF SUPPLIES AND ACCOUNTS

Admiral MORRIS. Willie Perry Conway was reported transferred to the Fleet Naval Reserve on July 10, 1922, in accordance with the provisions of the act of July 1, 1922. This act authorized transfers to the Fleet Naval Reserve of men who would complete 16 years' service at the expiration of the current enlistment in which serving. Several enlisted men of the Navy executed agreements to extend their enlistments and if at the expiration of such enlistments, as extended, they had completed 16 years' service they were permitted to transfer to the Fleet Naval Reserve in accordance with the act of July 1, 1922. The General Accounting Office raised a question as to the legality of the transfers to the Fleet Naval Reserve under these conditions.

The Secretary of the Navy, in letter of June 2, 1923, directed Captain Seibels, Supply Corps, that pending investigation of the legality of the transfer to the Fleet Naval Reserve of enlisted men under these conditions not to withhold retainer pay to enlisted men transferred to the Fleet Naval Reserve under such conditions.