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disadvantage is recognized at the California Maritime Academy and is pensated for to a certain extent by making weekly field trips to active merch ships of various types in the area. In the immediate proximity of the academ? are the California-Hawaiian Sugar Co., American Smelting & Refining Co. m. Union Oil Co. Small groups of 5 to 8 midshipmen, accompanied by an instry tor, visit ships calling at the docks of these companies. While on these fed trips the student observes shipboard operations and discusses various ship problem with the ship's officers. This program is not a complete substitute f service on an operating ship, but it helps materially to bridge the gap betwee the classroom and the ship in this particular aspect of training. The compa concerned in these visits and the ships' personnel have been extremely cooper ative.

In connection with practical instruction, the schoolship provides the tox laboratory that can be devised for practical demonstration of classroom "beer It is available and utilized for 12 months a year throughout the entire 3-year course of instruction. With the continuous availability of the ship, the stu becomes thoroughly familiar with shipboard life and participates in the rum of ship's maintenance and watch standing on a daily basis.

In addition to the practical instruction previously discussed, ship's ma => nance problems and the accomplishment of shipboard improvements and roz maintenance are assigned progressively in complexity and responsibility = accordance with the developing competence and experience of the midshipc Rotational assignment of a student during his afternoon practical instruct periods to duties such as storekeeper, paint-locker attendant, emergencyP3 ment maintenance man, assistant first lieutenant, etc., assist in developing competence. By the time a student has arrived at his first class (senior) ve he assumes and carries out the duties and responsibilities of a full-fledged åes | officer.

Captain RICHTER. I also have a statement from Mr. Keeley. ". business manager, which described in detail the financial arrangemen of the academy.

(The document referred to above is as follows:)

STATEMENT OF EDWARD E. KEELEY, BUSINESS MANAGER, CALIFORNIA MARITO ACADEMY

My name is Edward E. Keeley and I am the business manager of the Ca' Maritime Academy. I am retired from the United States Navy, having continuously for 30 years in that service. I retired as a lieutenant in the S. Corps.

My duties at the academy place me in direct supervision of all fissi st accounting procedures as well as the upkeep and maintenance of the phrum plant and the direction of the 65 civilians employed as the operating staff of “Þ school. I, therefore, have intimate contact with and knowledge of the finare · accounts of the academy, since I am directly responsible to the State fina department for the accuracy and completeness of my accounts. The State a tors have recently completed a full audit of the fiscal accounts which they for to be in excellent order.

I have a statement of costs of operation which I desire to submit to the m mittee for its consideration. This statement indicates the operating es ! the last 6 years, broken down to indicate the various elements to which costs are accountable. All figures included in this statement can be substantiate by an examination of the academy's accounts.

It is of major significance to note that based upon the average operating for the period in question, that percentagewise the cost for operati academy was borne as follows:

State of California.
Individual student_.
Miscellaneous____

Federal Government_

Total-----

I respectfully submit this statement of operating costs of the California Mtime Academy for inclusion in the record.

alifornia Maritime Academy, statement of costs of operation to State, student, and Federal Government

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Senator KUCHEL. That is the most important one, in my judgment. The CHAIRMAN. Where is Mr. Keeley?

Captain RICHTER. He isn't here.

Senator KUCHEL. May I see a copy of that statement?

The CHAIRMAN. Captain, if you have a general statement we will be lad to hear it. I think we want to ask you some questions on the

nances.

Ceptain RICHTER. My general statements cover, in effect, the oportunities which the California State Maritime Academy presents to he young men of California, and also the United States in general. The CHAIRMAN. Tell us first how a young man gets in there.

Captain RICHTER. He applies. He wants to go to sea; he goes to his ounselor in high school where he obtains application blanks and varius instructions as to how he makes his application. He submits it to he academy, with a number of recommendations from reputable itizens in his neighborhood.

We then give him an entrance examination, and if he passes that xamination, passes the physical examination, the minimum requirenents which are required by the Coast Guard, then he can enter the cademy.

The CHAIRMAN. There is a physical involved?

Captain RICHTER. Yes. He must pass a minimum requirement of he Coast Guard for a license; that is, as a third mate or third engineer. The CHAIRMAN. In other words, you use the Coast Guard minimum tandards?

Captain RICHTER. That is right.

The CHAIRMAN. How many students do you have there?

Captain RICHTER. At the present time we have 146 students.
The CHAIRMAN. How many applicants do you have?

Captain RICHTER. Last year, for the entering class, we had 245 pplicants, from whom we accepted 73. Some of them couldn't pass The physical; some couldn't pass the mental examination.

The CHAIRMAN. The point I am making is, you have more people ranting to get into the academy than you can take care of?

Captain RICHTER. That is correct.

The CHAIRMAN. And more people who could be eligible under the tandards you set up than you can take care of?

Captain RICHTER. That is right; yes.

The CHAIRMAN. And how much does it cost you per student? Captain RICHTER. The cost to the State is $5,343; to the Feder Government, $2,265, and to the individual student, $1,101.

The CHAIRMAN. What does that add up to then?

Captain RICHTER. To a total of $8,709. That is not on that partic lar statement. It is in my statement.

The CHAIRMAN. That is per student?

Captain RICHTER. Yes; for 3 years.

The CHAIRMAN. Let's see; that would be close to $3,000 per year. wouldn't it?

Captain RICHTER. Yes; somewhere along there, $2,900.

The CHAIRMAN. That is just the cost, administrative cost of school and the running of the school? How does he take care of -sustenance?

Captain RICHTER. He has to pay for that. He pays for his suste

nance.

The CHAIRMAN. In other words, that is out. Does he stay in t school?

Captain RICHTER. We have dormitories; they live at the school a eat their meals there.

The CHAIRMAN. Like at King's Point?

Captain RICHTER. That is right.

The CHAIRMAN. What do you charge him for a year, or a molt. Captain RICHTER. $135 a semester, for board and keep.

The CHAIRMAN. Semester?

Captain RICHTER. Yes; there are three semesters in the year. The CHAIRMAN. And his uniform allowance?

Captain RICHTER. If he enters under the Naval Reserve sta then of course, he gets his $200 a year book and uniform allowan If he can't pass the Navy physical examinations, he can't then t accepted as a Naval Reserve officer candidate, and he must pay fo his uniforms, so he doesn't get any allowance from the Governme for that.

The CHAIRMAN. Well, would you take any boys in that would.: be able to become Naval Reserve officers?

Captain RICHTER. Yes.

The CHAIRMAN. How many?

Captain RICHTER. Roughly, we run about 4 percent of our peet who are not physically qualified to pass the naval physical exam a tion, but they can pass the Coast Guard.

The CHAIRMAN. So that you would say that almost 100 perver of your students end up in either Coast Guard or Naval Reserve when they are through?

Captain RICHTER. In the Naval Reserve, sir, or just mercha:" marine with a third mate's license.

The CHAIRMAN. How is that cost comparable to, say, Annap cost per student?

Captain RICHTER. This is very much smaller.

The CHAIRMAN. The record ought to show that.

Captain RICHTER. I wouldn't know that, but it is very much lower The CHAIRMAN. Of course, they would be much more high trained, would they not?

Captain RICHTER. Yes, sir.

The CHAIRMAN. Do all of them, or most of them intend to stay in he Naval Reserve?

Captain RICHTER. They all do. As a matter of fact, out of a total f about 945 graduates to date, or 954, there are over 600 who are till in the Naval Reserve.

The CHAIRMAN. How many are working in the merchant marine? Captain RICHTER. We are making a survey. We made a survey ack in 1955, and there are about 19 percent now actually serving in he merchant marine; that is 66 people. That is out of the sampling. Roughly 20 percent of the people who are graduated from the Academy are now serving in the merchant marine.

The CHAIRMAN. And where do the 80 percent go? Captain RICHTER. They go into various other places. Some are in he Navy as regular naval officers; some are in the Army Transportaion Corps; some are in the Coast Guard and some are working for maritime companies in the maritime industry on shore.

The CHAIRMAN. So the fact they don't actually sign up or go to ea doesn't necessarily mean they are not still involved in maritime activities?

Captain RICHTER. That is correct, sir. They can still also retain heir licenses active so that in an emergency they can go to sea.

The CHAIRMAN. How many of them, generally speaking, would you say, just disappear in some other form of activity. The common complaint has been to these academies, that they train them for this job and the maritime doesn't get them.

Captain RICHTER. I would say roughly 5 percent disappear.

The CHAIRMAN. Your experience is that very few go into some other line of endeavor?

Captain RICHTER. Where they wouldn't be eligible or available. For instance, we have some who become doctors, and there is one priest that I know of in Sacramento who is a graduate of our place. The CHAIRMAN. But the bulk of them, you think, sort of stay with this line of endeavor?

Captain RICHTER. For the rest of their lives.

The CHAIRMAN. How much did we appropriate last year for you? Captain RICHTER. $100,000.

Senator KUCHEL. I thought it was a little more than that. Is that accurate, or just round figures?

Lieutenant KEELEY. $660,000 for 4 academies, and it wasn't broken down by specific amounts because it depended on relative enrollments. I think we got between $100,000 and $120,000.

The CHAIRMAN. And the rest was divided between Maine, New York, and Massachusetts.

What is the percentage-or what did the State of California appropriate to you?

Captain RICHTER. Three-hundred-and-eighty-thousand-odd dollars. I will take that back. It was $278,000.

The CHAIRMAN. And you have got about $100,000 plus? Do you get any fees at all?

Captain RICHTER. Yes; students have to pay registration fees, tuition fees.

The CHAIRMAN. How much does that amount to in your overall cost!

Captain RICHTER. From the students, roughly $54,000.

The CHAIRMAN. You are running on a budget of about $500,000! Captain RICHTER. That is right; pretty close to that.

The CHAIRMAN. And the Federal Government is contributing close to, or just under a fourth of it?

Captain RICHTER. Yes.

The CHAIRMAN. And the State pretty near a half?
Captain RICHTER. Yes.

Senator KUCHEL. Mr. Chairman, if I may, in line with that, let m2 direct your attention to the statistics on page 1 of Mr. Keeley's report. in which percentagewise it indicates that the State pays 68 percen plus; the Federal Government, 14 percent plus; the individual st dent almost 15 percent, with some miscellaneous of a little less than 2 percent.

If those figures are accurate, then it would indicate that the people of California are paying more than two-thirds of the total cost Would that be a fair statement?

Captain RICHTER. Yes.

The CHAIRMAN. Plus the State plus student fees.

Senator KUCHEL. May I ask another question? I want the recor to show this. You are appointed by a board which in turn is ap pointed by the Governor?

Captain RICHTER. That is correct.

The CHAIRMAN. And I would like to ask you if the government of California, legislature, executive branch, are both in favor of this program?

Captain RICHTER. They are all in favor of it. We have a statemer: from one of the members of our board of governors who is on the State legislature concerning that.

The CHAIRMAN. I know Senator Gibson personally. This academ has been in operation here for over 25 years, and every once in a while into my office comes a stray letter objecting to this. We had some trouble keeping it last year by reason of the Kings Point agitation, but I would like to have representatives of the Government based their own history indicate very clearly that the government of Cal:fornia, which puts up over two-thirds of the cost, favors a continuation of this program, so there will be no question but what the people of this State want it continued.

That would be your statement, Captain; would it?

Captain RICHTER. Yes, sir. I have, as a matter of fact, a very fre statement from Governor Knight concerning that.

Senator KUCHEL. Has that been put into the record?

Captain RICHTER. Yes.

The CHAIRMAN. Do you think you are in any way competitive with Kings Point?

Captain RICHTER. I think we have to be since we are training peopl for the same purpose..

The CHAIRMAN. Kings Point is the Federal Academy in New York on Long Island?

Captain RICHTER. And we are both training people for the same purpose and we are both seeking Federal funds to assist us in pro ducing these men that are so vitally needed, therefore, I would think that we are in competition with them.

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