included in the Inventory in Transit Account on the on-continent books at the end of the applicable accounting period, and submitted this statement to Jobsite for information and required action. For example, ma- terials paid for and received on-continent were immediately charged to the Inventory in Transit Account on the on-continent records, but might remain on the decks at Oakland, and/or in transit for one or more months after payment. When shipping schedules were normal, these reconciling items were normally cleared from the Jobsite Inventory in Transit Account during the subsequent month; however, items uncleared from the account at Jobsite for 60 days were not uncommon. Items not cleared from the Inventory in Transit Account within 90 days were given preferred attention by both Jobsite and On-Continent Fiscal Divisions, in order that their identity might not be lost. In many instances - especially in connection with items obtained from other govermment agencies - invoices, shipping documents, and related identifying documents were not furnished by the respective agencies on a current basis. In some instances, copies of these documents might be received at Jobsite with no documentation furnished the Los Angeles Office, or vice versa, by reason of inconsistent mailing practices on the part of the various agencies involved. Jobsite also furnished monthly summaries of all. inventeries by clas- sification, including the Inventory in Transit Account, reflecting total dollar amount of each inventory category, as reflected by the Jobsite Inventory Control Accounts. These swamaries were reconciled with on- continent inventory controls by the On-Continent Property and Materials Accounting Section by addition of the amounts pald for items not received at Jobsite as of the end of the applicable month. Receiving records were consistently good. Some loss and damage was sustained on items in transit by Navy surface vessel. In view of the fact that cargoes were loaded aboard vessels carrying cargoes for installations at Hawaii, Johnston Island, Xwajalein, and the Orient, these losses in the amount of $55,322.26, through June 30, 1951, were considered negligible. This amount constituted approximately 0.33 per cent of items charged to the Inventory in Traasit Account (including items furnished by the government), in the approximate total amount of $16,600,000.00. Relief of accountability was accomplished by processing Over, Shortage, and Damage Reportsat Jobsite upon receiving or inspection of the shipments. Practically all adjustments or claims with vendors and on-continent carriers resulting from over- and uncer-shipments or damage in transit were accomplished by coerdinated effort on the part of the oncontinent procurement and fiscal organizations. Over, Short, and Demage Reports were prepared by the om-continent warehousing personnel at time of receipt of shipments. Normally, it was considered that on-continent receiving reports indicating receipt of items im goed condition, supported by export packing records and evidence of transshipment as refleeted by the shipping manifests and bills of lading, precluded the possibility of claims against vendors or on-continent carriers. There were, however, a negligible number of claims against vendors for defective equipment or inadequate export packing which could not be ascertained prior 11-21