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Admiral GREGORY. The station at Marshfield was closed partly because the increased range of modern transmitters on board ships has obviated the necessity of maintaining shore radio traffic stations. in such close proximity as formerly required. It was also found that by installing transmitting apparatus at comparatively small cost, but sufficient for radiocompass purposes at the Empire and Eureka stations, those stations could be made self-contained and complete for radiocompass work. This made the continuation of the Marshfield station unnecessary and it was accordingly ordered closed. Mr. VINSON. Did the closing of the Marshfield station result in the establishment of any other station or any increased investment at any other station?

Admiral GREGORY. No new station was established on account of the closing of the Marshfield station. There was a comparatively small increase in the investment at Empire and Eureka, but no new buildings or additional land were required. The compass station at Empire was established in 1923. Improvements consist of a double set of quarters, a compass house, a storage shed, a fuel shed, pump house, cistern, and a sewer, the total cost being about $16,000. This does not include the cost of the apparatus.

RETURN OF LAND TO JOHN H. ABEL

Admiral CAMPBELL. The next bill for consideration is H. R. 12766, which would authorize a return of certain land to John H. Abel.

This parcel of land containing 5.17 acres, more or less, was included within the area which was taken over by the United States by proclamation of the President dated November 4, 1918, as a part of the Marine Corps Reservation, Quantico, Va. This parcel of 5.17 acres, more or less, has never been physically occupied by the Marine Corps. It is not required for naval purposes and will not be necessary in the future for such purposes. It is located along the boundary line of the Marine Corps Reservation and therefore its retention as a part of the Marine Corps Reservation is not essential. The former owners desire that title to this parcel of 5.17 acres, more or less, be returned to them. No compensation has been paid by the United States as the former owners did not desire to part with the property. The proposed action in returning this land to the former owners is in line with similar action authorized by the act of July 12, 1921, in returning to former owners certain lands at Yorktown, Va., and Great Lakes, Ill., which were taken over by the United States for war purposes and for which settlement had not been made.

Mr. VINSON. Reverting to the proposed sale at Marshfield, Oreg., would the money from the sale of that radio station go into the Navy public works construction fund?

Admiral CAMPBELL. Yes.

Mr. VINSON. And the bill we are discussing would simply allow the department to return land to its owner?

Admiral CAMPBELL. That is right.

Mr. MILLER. Have those people at Quantico been paid anything for the land?

Admiral CAMPBELL. No.

Mr. MILLER. Why can you not turn it back without legislative authority?

Admiral CAMPBELL. Because it was taken over in accordance with the President's proclamation.

Mr. MILLER. Then why not send it back to them by Executive order?

Admiral CAMPBELL. It is felt that legislative authority is necessary to do so. The United States holds title to the land in fee simple. Mr. VINSON. You desire this authority to be incorporated in H. R. 11492?

Admiral CAMPBELL. Yes.

Mr. VINSON. That is satisfactory to me.

NAVAL OBSERVATORY, WASHINGTON, D. c.

Mr. VINSON. Now tell us about this, Admiral Campbell. Admiral CAMPBELL. When that land was taken over the idea was to have a circle with a radius of 1,000 feet. At that time there was some land outside of the thousand-foot radius that was gotten and some inside of the thousand-foot radius we did not get. The part inside belongs to the Industrial Home of the District of Columbia. The proposition here is to exchange with the District of Columbia the land outside the thousand-foot radius for the land inside of it. Appraisers of the District of Columbia have fixed a price of $151,000 upon the land outside of the radius and $97,600 upon the land and improvements inside of the radius. The bill provides that the land outside may be sold by the District of Columbia and half the proceeds of the sale go toward the construction and purchase of a new industrial home, the other half to go to development of the Naval Observatory. Under that appraisal the Government surrenders $151,700 and gets $173,000.

ARCHERS CREEK, S. C.

Admiral CAMPBELL. This is another bill for the acquisition of land and authority to construct a bridge at Archers Creek, S. C. That passed the House by unanimous consent the other day.

Mr. VINSON. I move that all the bills the admiral has been talking about be incorporated in H. R. 11492.

(The motion carried unanimously.)

The CHAIRMAN. If there are no further questions to ask Admiral Campbell or Admiral Gregory, and they have nothing further to tell us, let us thank them for coming and adjourn for the day.

(Thereupon, at 12.20 o'clock p. m., Saturday, January 22, 1927, the committee adjourned to meet at the call of the chairman.)

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[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,

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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 compensa tion 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.

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 passage.

Sincerely yours,

CURTIS D. WILBUR,
Secretary of the Navy.

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