[No. 96] TO AUTHORIZE THE APPRAISAL OF CERTAIN GOVERNMENT PROPERTY, AND FOR OTHER PURPOSES (H. R. 16771) NP5/N26-5/L4-3 (261116) L. NAVY DEPARTMENT, Washington, January 27, 1927. The CHAIRMAN COMMITTEE ON NAVAL AFFAIRS, House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: There is inclosed herewith a copy of a letter, together with a copy of a proposed bill to authorize the appraisal of certain Government property, and for other purposes, this day forwarded to the Speaker of the House of Representatives. Sincerely yours, CURTIS D. WILBUR, Secretary of the Navy. NAVY DEPARTMENT, Washington, January 27, 1927. The SPEAKER OF THE HOUSE OF REPRESENTATIVES, Washington D. C. MY DEAR MR. SPEAKER: In 1917-18 the War Department constructed at Nitro, W. Va., a plant for the manufacture of explosives. In order to economize in the use of fuel a contract was made March 8, 1918, with the Virginian Power Co. to furnish electric power from the pit mouth at Cabin Creek Junction, W. Va., the Government providing a large part of the power equipment to which it retained title. At the end of the war Nitro was sold and the contract with the Virginian Power Co. was turned over to the Navy Department for the purpose of obtaining electric current for the naval ordnance plant at South Charleston, W. Va. The Navy Department then made a suitable contract with the power company for said purpose and that contract has been renewed from year to year and is still in force. Paragraph No. 19 of the contract is as follows: 19. The company agrees to purchase the equipment furnished by the Government to the company, used in supplying electric power to the naval ordnance plant, except the transmission lines along the K. & M. right of way, within three years from the date of written notice from the Government so to do, but will not be permitted to purchase the same until they have received notice so to do. The price to be paid the Government for equipment purchased under this contract by the company shall be determined by a board of three members, one member of which shall be appointed by the Secretary of the Navy, one by the company, and the two members so appointed shall appoint a third. If either party dissents from the decision of the board, then the question shall be referred to the Court of Claims, whose decision shall be final. Nothing herein contained shall prevent the Government from disposing of its property at the best price obtainable, except that upon receiving an offer for the disposal of any portion of its property used in the furnishing or the transmission of electric power under (599) 20038-27-No. 96 this agreement the Government shall notify the company of the receipt of such offer, and a preferential right of purchase shall be accorded the company, which right, however, must be exercised by the company within the 30 calendar days after the receipt of such notice in writing. In consideration of the obligation of the company, herein contained, to purchase the equipment supplied by the Government, and further, in consideration of the stipulation herein contained, whereby the company is prohibited from purchasing this equipment until notified by the Government so to do, it is agreed that in the event, the Government desires to terminate this agreement, or in the event of the sale of any of this equipment to outside parties, then the company shall not be deprived of the full use of such equipment for a period of one year dating from the date of receipt by the company of written notice from the Government confirming such sale or termination of agreement. On June 27, 1925, the Navy Department gave to the contractor notice to buy the property of the United States as specified in the said section of the contract. By section 9 of an act approved March 4, 1909, entitled "An act making appropriations for the sundry civil expenses of the Government for the fiscal year ending June thirtieth, nineteen hundred and ten, and for other purposes," it is provided as follows: That hereafter no part of the public moneys, or of any appropriation heretofore or hereafter made by Congress, shall be used for the payment of compensation or expenses of any commission, council, board, or other similar body, or any members thereof, or for expenses in connection with any work or the results of any work or action of any commission, council, board, or other similar body, unless the creation of the same shall be or shall have been authorized by law; nor shall there be employed by detail, hereafter or heretofore made, or otherwise, personal services from any executive department or other Government establishment in connection with any such commission, council, board, or other similar body. (35 Stat. 1027. ch. 299.) The foregoing statutory provision will, in view of the decision by the Comptroller General of December 9, 1925, denying the right of the Navy disbursing officer to pay the Government's share of the fee of such a third person in the case of an arbitration to adjust certain differences between the Government and E. W. Bliss Co., prevent the expenditure of public money for the fee of a third member of the board of survey contemplated by said contract, or for the pay or expenses of any naval officer who may be appointed by the Secretary of the Navy to act as a member of such a board, without legislative sanction. By an appraisal made in 1921, the Government property here involved was worth $1,625,825.08. Wear and tear will involve a depreciation of more than 30 per cent up to the present time. I am therefore transmitting a draft of a bill authorizing the appointment of the board contemplated by the contract mentioned and the application of a sum, not to exceed $10,000, from the appropriation "Ordnance and ordnance stores," to pay one-half of the fee and expenses of the third member of the said board who is to be selected by the members appointed by the Secretary of the Navy and the contractor, and I recommend its Sincerely yours, passage. CURTIS D. WILBUR, A BILL To authorize the appraisal of certain Government property, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Navy be, and he is hereby, authorized to cause the property of the Government used under the contract of October 16, 1924, and renewals thereof, for the furnishing of electric current to the naval ordnance plant at South Charleston, West Virginia, to be appraised, as provided for in said contract, by three persons as a preliminary to the purchase of said property by the contractor, the three appraisers to consist of one person selected by the Secretary of the Navy, one by the contractor, and the third by the two first so selected, as stipulated in the contract. The person selected and detailed by the Secretary of the Navy for said purpose, who shall be an officer of the Navy, and such persons as may be detailed by the Secretary to assist him, shall serve without additional compensation, except travel and subsistence in accordance with law. One-half of the fee and expenses of the third appraiser, not in excess of $10,000, as the Secretary may approve, shall be payable from the appropriation "Ordnance and ordnance stores," under the Navy Department, which is hereby made available for the purpose. [No. 97] A HEARING ON (H. R. 16703) A BILL APPOINTING CAPT. REGINALD ROWAN BELKNAP, UNITED STATES NAVY, RETIRED, A REAR ADMIRAL ON THE RETIRED LIST OF THE NAVY HOUSE OF REPRESENTATIVES, Tuesday, January 25, 1927. The subcommittee this day met, Hon. Thomas S. Butler (chairman) presiding, for consideration of H. R. 16703, which reads as follows: A BILL Authorizing the President to appoint Capt. Reginald Rowan Belknap, United States Navy, retired, a rear admiral on the retired list of the Navy Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That in recognition of the exceptionally meritorious service of Captain Reginald Rowan Belknap, United States Navy, retired, in command of Mine Squadron 1 of the mine force during the operation of laying mines in the North Sea, and for his excellent work in connection with the equipping of these ships for mine-laying duty, the President is hereby authorized to appoint him, by and with the advice and consent of the Senate, a rear admiral on the retired list of the Navy: Provided, That no increase nor back pay or allowances of any kind shall accrue as a result of the passage of this act. The CHAIRMAN. I will ask that you, Mr. Burdick, take charge of this examination. Mr. BURDICK. I would like to have Admiral Shoemaker give us a general statement of the attitude of the department toward the pending measure. STATEMENT OF REAR ADMIRAL WILLIAM R. SHOEMAKER, UNITED STATES NAVY, CHIEF OF THE BUREAU OF NAVIGATION Admiral SHOEMAKER. Captain Belknap's case, from the point of view of the Bureau of Navigation, required rather more in the way of reward than would come from his simply being transferred to the retired list as a captain. His service has always been very good indeed, although he did have one court-martial. Aside from that one unfortunate incident, the manner in which he has discharged his duties has always been commended. During the war his work in charge of Mine Squadron 1 of the mine force, which had the difficult task of laying the mines across the North Sea, was very highly commended by all his seniors. The northern barrage was characterized in the annual report of the Secretary of the Navy for 1918 as "the outstanding antisubmarine offensive project of the year." The then Chief of Naval Operations, Admiral Benson, who is here this morning, termed it "one of the greatest undertakings of modern times one of the most successful efforts of the whole war." ** * * |