ships out of their station for that length of time, so it is a very important matter to the Navy.

TRANSPORTATION EXPENSE

The other increase in cost, amounting to a little over a quarter of a million dollars, is something which is inconsiderable compared to the effect on the Panama Canal itself, but that covers only a portion of the expense incurred by the Navy, because if we had to take on American citizens for the naval activities, there would be a transportation expense also, which is very considerable.

That, in brief, covers that correspondence which also quotes some letters from labor unions, and so forth, on the Canal Zone.

Senator THOMAS. Does anyone else from the Navy Department Iwant to be heard at this time?

Admiral VAN KEUREN. I think Admiral Moreell should be heard.

STATEMENT OF REAR ADMIRAL BEN MOREELL, CHIEF, BUREAU OF YARDS AND DOCKS, NAVY DEPARTMENT

INCREASE COST TO NAVY UNDER HOUSE AMENDMENT

Admiral MOREELL. I just want to subscribe, Mr. Chairman, to the statement made by Governor Ridley which covers, in effect, our situation. We are very much smaller, of course, than the Panama Canal. We have a development program which is in the immediate offing, we hope, for construction of air bases and submarine facilities on the Panama Canal and which will amount approximately to $20,000,000. We think that the cost of that construction will be increased somewhere in the neighborhood of 25 percent by this legislation, "if" we can get the men to go down there. And that is a very large "if"; Governor Ridley yesterday expressed considerable doubt as to our ability to get the proper number of qualified American artisans to go to the Panama Canal Zone. The reports which I have from our representatives in Panama indicate that they share that doubt.

In connection with our current operations, we have a great many projects which are fluctuating in magnitude. I mean by that that the work load fluctuates rapidly and the employment is of short duration. It would obviously be impractical to bring American artisans to the Panama Canal Zone to work for 2 or 3 months, provide them with transportation and housing while they are there, and then send them back and allow the housing to be vacant for the periods between jobs.

DISTINCTION BETWEEN ROUTINE CONSTRUCTION WORK AND MAJOR CONSTRUCTION PROJECT

Senator HAYDEN. Admiral, I can understand your objection with respect to any routine work that is done in the Canal Zone for the Navy. I can understand that the volume of that work would fluctuate in such a way that you could not participate, but if there was to be a major construction job that was just to last a brief period of time-a year or two-with no necessity for providing housing for the families of Americans employed on the job, it would seem to me that in that case perhaps a restriction of this kind might be justified, because you are starting with nobody employed. The Americans brought down there could be housed in barracks to do the work, and when the job

was done, they could come back home. Of course, undoubtedly there is a heavy labor turn-over, because it is difficult for Americans from the northern United States to endure a tropical climate, but there would be ships coming and going all the time and that load might be equalized in that way. But do you not draw distinctions between work that is just a single job that is going to be done in a given period of time and routine work that must be done as it occurs?

Admiral MOREELL. I agree with you, Senator, to a certain extent. But our experience in connection with the construction of our western Pacific air bases and our Alaskan air bases is this: That the best of the artisans and, of course, we want the best on work of that character-do not want to go away from their families for long periods of time. Now, we find ourselves faced with the necessity of building at Kodiak, Alaska, for example, married men's quarters for our first-class artisans. That can be interpreted as a very fine tribute to the devotion of the American artisan to his family. It works out that way. We are actually building quarters for married artisans at Kodiak and at Midway that is in the Pacific Ocean-so that although what you say is correct to a limited extent, it is not completely so. You can't expect these people with families to go down and stay for a year or so without their families. They won't do it.

POSITION OF NAVY DEPARTMENT ON AMENDMENT TO SECTION 2 PROPOSED BY STATE DEPARTMENT

Senator THOMAS. Let me make this request: That your Department give consideration to the suggested amendment just made to this section 2 and then later advise the committee whether or not that amendment would be satisfactory to the Navy Department.

Admiral MOREELL. It would undoubtedly alleviate conditions, Mr. Chairman, but it would not correct the objectionable situation, because of the fact that it would apply only to Panamanian citizens. As Governor Ridley testified yesterday, there are also West Indians who are there in large numbers, many of them employees of very long standing

Senator THOMAS. Then, as I understand, you recommend the elimination of the section in toto?

Senator CHAVEZ. It is section 15, it is not?

Admiral MOREELL. Section 2.

Senator THOMAS. Section 2.

Admiral MOREELL. Yes, sir; I recommend elimination in toto. Senator THOMAS. Is there anyone else from the Department who desires to be heard on this particular item?

Admiral VAN KEUREN. No, sir.

Senator THOMAS. All right, Governor. You may resume.

STATEMENT OF BRIG. GEN. C. S. RIDLEY, GOVERNOR OF THE PANAMA CANAL Resumed

ADDITIONAL LOCK CONSTRUCTION

Senator THOMAS. Governor, you may proceed now on the other point about which you wish to testify. As I understand, it is the necessity for the construction of additional locks on the Panama Canal.

Governor RIDLEY. Yes, sir. I have a short statement to make and then I would like to have the necessity presented by the Army and Navy officers who are here.

AMOUNT OF BUDGET ESTIMATE AND ACTION BY HOUSE

An estimate of $15,000,000 was submitted through the Bureau of the Budget for commencing work on the project for an additional system of locks in the Canal Zone, as authorized by act of Congress approved August 11, 1939. The House of Representatives failed to approve any funds for this purpose but substituted an appropriation of $850,000 for continuing investigations under the joint resolution (H. J. Res. 412) approved May 1, 1936.

NATIONAL DEFENSE PHASE OF ADDITIONAL LOCKS

The question of beginning work on the additional locks project is solely one of national policy. In my opinion, the construction of this project is absolutely necessary for the adequate defense of the Panama Canal if it is to continue to carry out its mission of maintaining the waterway open for the passage of the Navy at all times.

AMOUNT SPENT TO DATE ON PREPARATION OF PLANS

Under authority of the joint resolution of May 1, 1936, the Panama Canal has for the past 2 years been engaged in making plans for the proposed lock project, and approximately $263,000 has been expended for this purpose. The work is still in progress and considerably more will be accomplished by the end of this fiscal year. As a result, we are assured that the detailed plans will be ready by the time contracts must be made to complete the project within 6 years.

Senator HAYDEN. Who is making the plans-the Panama Canal organization? That is your organization?

Governor RIDLEY. Yes, sir.

Senator HAYDEN. The House committee flatly states that detailed plans have not been started and will take 2 years to complete. Governor RIDLEY. I am going to cover the matter of plans. Senator HAYDEN. All right.

WORK THAT WOULD BE UNDERTAKEN UNDER BUDGET

ESTIMATE

Governor RIDLEY. The $15,000,000 requested for the fiscal year 1941 will be used in continuing the detailed plans and drawings, preparation of camp sites for the workmen and establishing other preliminary arrangements which will greatly facilitate the contract work when it begins. The first work to be undertaken on the project itself is the excavation of the channels. The only plans required for this work are the locations of the channels and their dimensions. This has all been planned, with the exception that refinements may be made as a result of exploratory work now going on. It is planned that this first excavation contract will be started in May 1941, and there is no doubt that the contract plans and specifications can be prepared by that time. In fact, it would be possible to start the work in January 1941, if that were necessary.

Senator HAYDEN. Now, let us understand that. The first work is when excavation begins. Somebody goes in with a steam shovel or

electric shovel and begins to remove the earth, and you know the place where you want it moved. You know that now?

Governor RIDLEY. That has already been planned and the only thing we are going to do, because we do not have to begin it right away, is to study further and make little adjustments which we found may be desirable in the drilling work that we are carrying on.

WHEN WORK COULD BE STARTED

Senator HAYDEN. But there are places where you could go to work the first of next January by removing earth if you are certain it is the right place?

Governor RIDLEY. There isn't any question about it. There are about 10 miles of channel in this work, and as I say, we can start it under contract next spring.

Senator THOMAS. If that is true, Governor, and if the Congress should make available the money, you could advertise for a contract immediately, could you not, and let a contract and start work there with the minimum amount of time which would be the amount of time necessary to advertise and the amount of time to bid and the amount of time necessary to make the award?

Governor RIDLEY. We could start by the first of January, but it is not necessary to start by that time, so we are planning to start by May. Senator THOMAS. Before hearings are concluded, we would like to have in the record the reasons for beginning this work in the immediate future.

Governor RIDLEY. Yes, sir. That will be developed this morning by the testimony of the Army and Navy officers who are here.

Senator HAYDEN. You would not actually pay out any money probably for a year, would you?

Governor RIDLEY. We expect to start the work in May and we will have to pay the excavation work for May out of the $15,000,000, and that is a part of the $15,000,000 appropriation.

Senator THOMAS. That is May of 1941?

Governor RIDLEY. That is 1941.

Senator THOMAS. That will all be taken care of in the deficiency bill that will come along next January.

CONTRACT AUTHORIZATION

Senator HAYDEN. What I thought, Mr. Chairman, was that if an authority contract were given so that the work could start in May, the amount of money that would actually be paid out during the fiscal year would be the sum required to meet the demands of the contract what he had learned from May to the 30th of June.

Governor RIDLEY. Just for May. The June contract amount will be paid during the next fiscal year.

Senator HAYDEN. Then if that is the case, what you really need more than anything else is ability to make a firm commitment to the contractor that he will be paid if he undertakes the work?

We

Governor RIDLEY. Yes, sir; and that was provided for in the estimates we made by asking authorization to make contract for $99,000,000, and that is a part of this think we are asking for now. would like to have the $15,000,000 restored and the contract authorization for $99,000,000.

AMOUNT OF DIRECT APPROPRIATION NEEDED

Senator THOMAS. If you had the contract authorization, how much money do you think would be required actually to check out prior to June 30, 1941?

Governor RIDLEY. $15,000,000.

Senator THOMAS. And you plan to do that much work prior to June 30?

I

Governor RIDLEY. Yes, sir; but only a small part of that will be paid on this contract work. Í explain in here what this covers. Senator THOMAS. All right, sir; proceed.

PURPOSES FOR WHICH DIRECT APPROPRIATION WOULD BE USED

Governor RIDLEY. As a matter of fact, I have already explained it. The $15,000,000 is to be used in carrying on the plans for the locks and to make preparatory arrangements, such as camp sites, clearings, relocating the railroad, putting a bridge over the Miraflores Locks, and so forth, which will expedite the contract work when it gets started.

Senator HAYDEN. The jungle will have to be cleared away for the right-of-way of the Canal?

Governor RIDLEY. Yes, sir. The site of the work has to be cleared. Camp sites have to be cleared and the camp sites laid out. We have to build two entirely new towns. We propose to lay these towns out and leave vacant lots for the contractor to come and construct his quarters and mess halls, but we will build there the other utilities, such as hospitals, police station, and those things which go to the control of the town.

Senator HAYDEN. There will even have to be roads to reach the town.

Governor RIDLEY. Roads, water, electric lights, and so forth. That is what we are going to do with the 15,000,000. It is preparatory work, except that at the very end of the fiscal year we will make one payment on this contract.

CONTINUED WORK ON DETAILED PLANS AND SPECIFICATIONS

While the preparatory work and the excavation work are going on, the detailed plans and specifications for the locks themselves will be in progress. A large force of engineers, draftsmen, and technical men has already been assembled and is ready to begin work immediately on these detailed plans. Already the main features and dimensions of these locks have been decided and preliminary drawings made sufficient to estimate in a preliminary way the detailed cost. There will be some advantage in developing the detailed contract plans and drawings while the excavation is going on, so that adjustments may be made where found to be necessary as subsurface conditions are exposed. The preparation of these detailed plans for the lock structures will require about 2 years, after which contracts will be made for the lock construction work.

In connection with this matter of plans, it must be remembered that we have the existing locks available as a guide and that, in general, it is only necessary to increase the dimensions of the present locks to apply them to the new project and to add to the designs of