638 .U5 fi2 I9l9e Copy 1 HOUSE OF REPKESENTATIVES. 2d Session. J Document 1 No. 449. ) 638 U5 P2 L919e :opy 1 RECEIPTS AND EXPENDITURES UNDER THE ACT APPROVED FEBRUxiRY 25, 1919. MESSAGE FROM THE PRESIDENT OF THE UNITED STATES, TRANSMITTING PRELIMINARY REPORT COVERING THE APPROXIMATE RECEIPTS AND EXPENDITURES MADE UNDER THE ACT OF CONGRESS APPPvOVEl^ ix^BRUARY 25, 1919, APPROPRIATING $100,000,000 )R RELIEF IN EUROPE. December 2, 1919. — Read; message ordered printed, and with accompanying paper referred to the Committee on Appropriations. iTo the Senate and House of Representatives: ^s required by the act of Congress, approved February 25, 1919, ""paajsmit herewith a prehminary report on the receipts and expen- ditures made u.iJ^i- appropriation of that act. WoouRow Wilson. The White House, Decemher 2, 1919. 115 Broadway, New York City, November 2J^, 1919. His Excellency the President of the United States, The WJdte House, WasMngton, D. C. Dear Mr. President: I hand you herewith prehminary report covering the approximate receipts and expenditures made under the act of Congress approved February 25, 1919, appropriating $100,000,- 000 for rehef in Europe, to be transmitted to Congress as required by that act. Owing to reasons stated in the report, it will be necessary to make an additional and final report when all the adjustments in outstanding credits and liabilities connected with the relief operations have been made. Yours, faithfully, Herbert Hoover. ES UI ^^ ,(K 2 RECEIPTS AND EXPENDITUEES Ul^DF.lt ACT APPROVED FEB. 25, 1919. PRELIMINARY REPORT OF RECEIPTS AND EXPENDITURES UNDER THE ACT OF CONGRESS APPROVED FEBRUARY 25, 1^19. I herewith submit the following preliminary report on receipts and expenditures from the funds provided under the act of Congress approved February 25, 1919, entitled: "An act for the relief of such populations in Europe and countries contiguous thereto, outside of Germany, German-Austria, Hungary, Bulgaria, and Turkey, as may be determined upon by the President as necessary." In explanation of tlie report there is attached hereto: (1) A table showing the preliminary estimate of expenditures from this appropriation and the countries to which the supplies purchased were sent. (2) A table showing tonnage of each commodity furnished each country on its general food and relief program from the appropria- tion. (3) A table showing tonnage of each commodity furnished each country for children's relief from the appropriation. All the values are given in round figures and are tentative for reasons given here- after, and may vary up to 5 or 10 per cent on the completion of the final statement. The expenditures on food shipments in Table 1 are roughly divided in the following proportions : " - * Per (Sent. F. 0. b. cost of food and other relief commodities at American ports 77. 37. Trans-Atlantic freight on above 20. 67 Demurrage 1. 10 Handling and transshipment in Europe 85 About 88 per cent of the rehef supplies furnished were sold under contract to the various Governments in the relief areas. For all such sales these Governments gave their special treasury notes in a| form approved by the United States Treasury, bearing 5 per cent interest, due June 30, 1921, to June 30, 1924. It was impossible to obtain reimbursement in cash because the currency in the countries to which these supplies were sent was impossible to convert into foreign exchange, except in comparatively insignificant amounts. I give herewith approximate list of the notes of each Government, which we expect to turn over to the United States Treasury. 1. Poland $57, 000, 000 2. Czechoslovakia 6, 750, 000 3. Armenia 10, 000, 000 4. Russia 5, 000, 000 5. Esthonia 2, 300, 000 6. Latvia 3,000,000 7. Lithuania 700, 000 8. Finland 4, 000, 000 Total 88, 750, 000 The remaining 12 per cent of the supplies were donated in assist- ance to private organizations set up in each country under direc- tion of the American Relief Administration for the purpose of fur- nishing food on a charitable basis to undernourished children. For such supplies it was, of course, impossible to obtain reimbursement. This service has contributed greatly to stabilizing the situation in ^. oi: ^'^ m .-.li 1920 RECEIPTS AND EXPENDITURES UNDER ACT APPROVED FEB. 25, 1919. 3 those countries, aside from the physical benefits to more than 3,000,- 000 undernourished chiklren, to whom the war tlireatened serious and permanent injury. Certainly this service is one for which the name of America will always be held in deepest gratitude. In addition to the children's relief, the American Relief Admin- istration paid approximately S550,000 for freight and expenditures on old clothing contributed by the American Red Cross and the Commission for Relief in Belgium, which was transported to the liberated countries and distributed without charge. The character of this clothing is so varied and uncertain that it has been found most unwise to attempt any sale on a commercial basis, and as it goes to the poorest classes it is a proper subject for charity. The American Relief Administration also expended $530,000 on freight in transporting from France to Poland, Czechoslovakia, and Esthonia United States Army bacon which the Governments of these States were able to purchase on credit from the liquidation board in France. This is covered by the treasury notes of those countries. It should also ])e noted that a question remains unsettled with the United States Shipping Board regarding the freight charges. The President and the board have approved the policy of fixing these on a cost basis, but as yet no reduction has been made in the tentative rates of freight which were originally f^xed at considerably above this cost. The relief supplies purchased by the American Relief Adminis- tration were all of American origin, and none of the appropriation therefore was expended outside of the United States, except to some extent for local freight and handling charges in Europe. I regret exceedingly that it is impossible to submit at the present time an item statement of the receipts and expenditures. Although the commodities required for relief shipments were all purchased prior to July 1, 1919, marine workers' strikes in the port of New York delayed the sailing of the last relief vessels until August 25. It was, therefore, necessary to continue our accounting staff in Europe until these vessels had been unloaded 30 clays later. The transfer of the accounting forces and records from various countries to the London office for credit required further time and thence from London to the United States there was also serious delay by the strikes in England,, and finally the unloading of the records was long delayed in New York by the longshoremen's strike. Combination of the European and American accounts is now in process and will be audited before presentation. These delays, together with the complicated nature of the accounts, make it impossible to present an item statement of receipts and expenditures for some little time. At that time the final and complete report will be filed. The totals will not, I be- lieve, vary materially from those given in this report. Respectfully submitted. Herbert Hoover. 4 RECEIPTS AND EXPENDITURES UNDER ACT APPROVED FEB. 25, 1919. Table 1. — Preliminary estimate of expendititrea of American Belief Administration, out of ^100, 000, 000 fund. Name of country to wliich shipped. Amount. Poland $56,900,000 6,700,000 10,000,000 2 300 000 Armenia Esthonia Latvia. . 2, 900' 000 Finland 3,900,000 4,600,000 Russia . 88,000,000 Children's relief: Poland 5 300 000 Czechoslovakia 2,900,000 900,000 Serbia Finland 500,000 600,000 Esthonia Latvia Lithuania 300;000 100,000 300 000 Various countries: Freight in transporti ng old clothing bv Red Cross, in transporting old clothing cc Freight and expense in Belgium ntributed by Commission for Relief 250 000 12, 000, 000 Grand total 100,000,000 RECEIPTS AND EXPENDITURES UNDER ACT APPROVED FEB. 25, 1919. ^■*r^N w*c '?^§^S5^ gg SS :S : •* M « in cc •cn«>t»TOCo mn EECEIPTS AND EXPENDITURES UNDER ACT APPROVED FEB. 25, 1919. fC ^ 11 ■ 11,205 1,185 1,121 I 1,272 867 2,562 4,235 112 2,711 1,432 2,343 27 i!ooo g J i • sssssrss issf ^? ^ ^ is: S- i gs-s?| ; isi 1 r o o i -- ^ ^^ n 2|s 1 :§ : 1 1 gi i si 1 sgs g 1 m ^" : S i i : :^ o 1 2 CO ?3 ^ : :2 : s ie g ;? ss 1 ^§g ; 5 ll i ss 3 S| 1 sgi g ii 1 1 1 S82 § ?§ 1 S^gg g i a si c5« i i ^1 i ^11 II 1 i i j 1 1 .2 ^ ^ 3 > 1 i 1 1 1 1 1 1 1 ll Ijfl o LIBRARY OF CONGRESS A iii'iiiTii'ii'iiriMii