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APPROPRIATION BILL, 1941

HEARINGS

BEFORE THE

SUBCOMMITTEE OF THE
COMMITTEE ON APPROPRIATIONS

UNITED STATES SENATE

SEVENTY-SIXTH CONGRESS

THIRD SESSION

ON

H. R. 8668

BILL MAKING APPROPRIATIONS FOR THE FISCAL YEAR
ENDING JUNE 30, 1941, FOR CIVIL FUNCTIONS
ADMINISTERED BY THE WAR DEPART-

MENT, AND FOR OTHER PURPOSES

Printed for the use of the Committee on Appropriations

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1940

216797

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SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS

ELMER THOMAS, Oklahoma, Chair man CARL HAYDEN, Arizona

JOHN G. TOWNSEND, JR., Delaware JOHN H. OVERTON, Louisiana

STYLES BRIDGES, New Hampshire RICHARD B. RUSSELL, Georgia

HENRY CABOT LODGE, JR., Massachusetts HARRY S. TRUMAN, Missouri ALVA B. ADAMS, Colorado FRANCIS T. MALONEY, Connecticut DENNIS CHAVEZ, New Mexico JOSEPH C. OʻMAHONEY, Wyoming

1 EVERARD H. SMITH, Clerk

Ex OFFICIO MEMBERS FROM MILITARY AFFAIRS COMMITTEE

MORRIS SHEPPARD, Texas

WARREN R. AUSTIN, Vermont ROBERT R. REYNOLDS, North Carolina

Ex OFFICIO MEMBERS ON RIVER AND HARBOR ITEMS

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BILL, 1941

TUESDAY, MARCH 12, 1940

UNITED STATES SENATE,
SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,

Washington, D. C. The subcommittee met, pursuant to call, at 10:30 a. m., in the hearing room, Capitol, Hon. Elmer Thomas, of Oklahoma (chairman), presiding

Present: Senators Thomas (chairman), Hayden, Overton, Russell, Adams, Chavez, Maloney, Townsend, Lodge, and Austin.

Senator Thomas. We have before us House bill 8668, a bill making appropriations for the fiscal year ending June 30, 1941, for civil functions administered by the War Department, and for other purposes.

Pursuant to custom, the secretary of our committee requested the Secretary of War to submit any recommendations he might deem proper for the consideration of the committee, and the Secretary submitted a reply. At this point, without objection, I will have the letter from the Secretary, together with his suggestions and recommendations, printed in the record,

(The matters referred to are as follows:)

LETTER FROM WAR DEPARTMENT PROPOSING CERTAIN AMENDMENTS

It

WAR DEPARTMENT,

Washington, March 4, 1940. Hon. ELMER THOMAS, Chairman, War Department Subcommittee, Committee on Appropriations,

United States Senate. DEAR SENATOR Thomas. In reply to your letter of the 28th ultimo, relative to the pending War Department civil appropriation bill, there is transmitted herewith a statement indicating the changes therein which are believed to be absolutely necessary, together with a brief statement of the reasons for each. will be appreciated if your committee will grant a hearing upon this bill, in which event representatives of the agencies interested will be prepared to discuss the amendments herein proposed.

It is my desire that General Ridley, Governor of the Panama Canal, have an opportunity to personally present the need for the amendments proposed in the items pertaining to the Panama Canal. General Ridley is now in Panama, and it will be further appreciated if the date for his appearance before the Committee can be set for Tuesday, March 12, or as soon thereafter as may suit the convenience of your committee. Sincerely yours,

HARRY H. WOODRING,
Secretary of War.

1

AMENDMENTS PROPOSED BY THE WAR DEPARTMENT TO THE WAR DEPARTMENT

Civil APPROPRIATION BILL FOR FISCAL YEAR 1941

RIVERS AND HARBORS

At page 6, line 22, strike out "$66,721,510” and insert "$68,773,050”.

Explanation.---Thé restoration of this item will enable the Department to continue important work within budgetary limitations. The restoration of the item for “Operating and care” is considered essential for the proper maintenance of existing authorized projects.

PANAMA CANAL-MAINTENANCE AND OPERATION

(1) At page 10, line 26, after the words “Canal Zone,” add “and construction of additional facilities”.

(2) At page 11, line 14, after the words “Panama Canal,” insert “and construction of additional facilities”.

(3) At page 12, line 13, after the words “Panama Canal,” add "and construction of additional facilities”.

Expianation.--The addition of this clause in the general provisions relating to Panama Canal appropriations is very desirable in connection with the amendment proposed authorizing an appropriation for the construction of additional facilities at the Panama Canal. The existing language refers to the three main appropriations of the Panama Canal, and reference should be made to this additional appropriation when it is included in the Appropriation Act,

The insertion of the clause in the first place makes definite the use of the appropriation for the special purposes listed thereunder. Where it is inserted the second time it permits the payment for claims for damages to property out of the appropriation, and where it is used the third time it extends the general authority of the Governor to pay necessary expenses not incurred in the United States out of the appropriation.

PANAMA CANALADDITIONAL FACILITIES

At page 13, after line 15, insert the following:

Construction of additonal facilitiesPanama Canal.--For construction of additional facilities for the improvement and enlargement of the capacity of the Panama Canal, in accordance with the Act approved August 11, 1939 (53 Stat. 1409), including reimbursement to the appropriations “Maintenance and Operation, Panama Canal,' 'Sanitation, Panama Canal', and 'Civil Government, Panama Canal', in such amounts as the Governor of the Panama Canal shall from time to time determine to be additional costs incurred for the objects specified in said appropriations on account of the prosecution of the work; in all $14,150,000; and, in addition, the Governor of the Panama Canal may, when authorized by the Secretary of War, make or authorize the making of contracts prior to July 1, 1941, for or on account of the construction of such additional facilities, to an amount not in excess of $99,000,000.”

Explanation.—This appropriation is necessary to enable the immediate beginning of the construction of the third lock project. The total estimate for this purpose was $15,000,000. The bill as it passed the House contains $850,000 for the preparation of plans and designs. This project is a most important national defense measure, and it is considered that it should be completed at the earliest possible date. It is estimated that the project will require 6 years to complete.

The Governor of the Panama Canal is of the opinion that this third lock project is essential to assure the availability of the Canal for the use of the Navy. Authority for the project was authorized by act of August 11, 1939. All necessary plans have been made for the immediate beginning of the construction of the project. The further detailed plans can be completed before the preliminary work and the excavation is completed.

PANAMA CANAL-CITIZENSHIP OF EMPLOYEES

At page 15, after line 16, strike out the following section inserted by the House of Representatives (p. 3310, Congressional Record of February 29, 1940):

“Sec. 2. No part of any appropriation contained in this Act shall be used directly or indirectly after January 1, 1941, for the payment of any civilian for services rendered by him on the Canal Zone while occupying a skilled, technical, clerical, administrative, or supervisory position unless such person is a citizen of the United States."

Explanation.—This amendment violates the recently ratified treaty with the Republic of Panama as set forth in detail in the letter of the Acting Secretary of War to Hon. J. Buell Snyder found on pages 3312 and 3313 of the Congressional Record of February 29, 1940. . It would require the discharge of many employees who have served the United States faithfully for many years and to discharge them in practically destitute circumstances would be inhumane and unjustifiable.

Information is not available as to the exact number that would be affected., If not more than 500 are discharged it would require the employment of 500 American citizens resulting in an initial expenditure for capital improvements costing $3,500,000, and a continuing cost of about $850,000 per annum exclusive of interest on the capital cost. If the number replaced is the minimum estimated by Congressman Lanham, 3,500, the initial capital expenditure will be $26,525,000 or $8,400 per new American employee, with a continuing cost of $5,000,000 per

This increased cost will require a large increase in tolls if the Canal is to continue on a self-sustaining basis. If this estimate of the effect is found approximately correct as to the number to be replaced, it will be impossible to carry out the legislation within the time specified in the amendment.

Senator Thomas. The Secretary of War makes a few suggestions for the consideration of the committee. The first suggestion is that the item on page 6, line 22, be increased from $66,721,510 to $68,773,050. The second suggestion relates to the maintenance and operation of the Panama Canal, and the third major suggestion relates to citizenship of employees in the Panama Canal Zone.

annum.

THE PANAMA CANAL

STATEMENTS OF BRIG. GEN. C. S. RIDLEY, GOVERNOR OF THE

PANAMA CANAL, AND H. A. A. SMITH, CHIEF OF OFFICE, THE PANAMA CANAL

CITIZENSHIP OF EMPLOYEES IN THE CANAL ZONE

Senator THOMAS. We have with us this morning the Governor of the Panama Canal, Gen. C. S. Ridley. I understand that Governor Ridley desires to make a presentation in behalf of the suggestions of the Secretary of War to which I have just referred.

General, you are the Governor of the Panama Canal Zone?
Governor RIDLEY. Yes.
Senator Thomas. How long have you held that position?
Governor RIDLEY. Since August 1936.

Senator THOMAS. Were you stationed in the Canal Zone prior to your term as Governor?

Governor RIDLEY. Yes; prior to that I was engineer of maintenance for the Panama Canal for 4 years.

Senator THOMAS. What period did that cover?

Governor RIDLEY. That covered from 1932 to 1936, and prior to that I was assistant engineer of maintenance, from 1920 to 1923.

Senator HAYDEN. Has it not been the rule from the beginning that the engineer of maintenance ultimately becomes Governor of the Canal?

Governor RIDLEY. Ever since the beginning that has been the case.

Senator HAYDEN. So that no one comes into charge of the entire work unless he has had at least 4 years' experience as an assistant?

Governor RIDLEY. That has always been the case.

Senator THOMAS. Adding your residence on the Canal, how long have you been stationed there in your various capacities? I am trying to get into the record a sort of background for your testimony.

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