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35. What percentage of the American foreign trade was carried in American vessels in the nearby and overseas trades, say, for the last dozen years?

36. How did this compare with the percentage carried by British ships in this trade?

37. What percentage of the total foreign passenger traffic was carried by American ships?

38. What percentage of the trans-Atlantic passenger traffic was carried by American ships for the same period?

39. What is the largest American-built ship operated in the trans-Atlantic trade?

40. Are these ships economical to operate and do they get a fair share of the trade?

41. How do the Manhattan and Washington compare in size with foreign ships in the trans-Atlantic services?

42. How many vessels in excess of 25,000 gross tons have been built by foreign countries during the last 8 years?

43. Was there a demand for ships following the World War? 44. In what year following the World War did ocean freight rates begin to slump?

45. Did the war-time shipbuilding program of the United States Government continue after the signing of the armistice?

46. Were any of the war-time shipbuilding contracts canceled after the armistice?

47. How many keels were laid during the years 1918 to 1921 for Government account?

48. How many ships were built from 1922 to 1928 in American yards for service in the overseas foreign trade?

49. What was the idle steam and motor tonnage of the world in 1922? 50. How much has the steam and motor tonnage of the world increased since 1922? 51. Did the steam and motor tonnage of the United States show an increase or decrease during this period? 52. Did the volume of world trade justify any increase in ship tonnage during

this period?

53. What is the world tounage of ocean-go.ng tankers? 54. Which are the principal tanker owning countries? 55. How do these countries rank? 56. What percentage of the tanker tonnage 10 years of age or less does each cönntry own?

57. How does the United States compare with Great Britain and Norway in tankers with speeds of 12 knots and upward? 58. It frequently has been stated by foreign critics that the United States is fargely to blame for the excess ship tonnage in the world today. Is there any truth in this statement? 59. From the standpoint of value of the water-borne foreign trade of the Crnited States compared with the rest of the world, do you consider that the American merchant marine of today competing in the international carrying trade is excessive in size?

Hon. 8. O. BLAND,

Post OFFICE DEPARTMENT'S ANSWER TO QUESTIONNAIRE

OFFICE OF POSTMASTER GENERAL,

Washington, D. C., March 18, 1935. Chairman Committee on Merchant Marine and Fisheries,

House of Representatives. My Dear Mr. BLAND: I am in receipt of your letter dated March 14, 1935, prising me that your committee would hear witnesses on the subject of the President's subsidy

message, inquiry into merchant-marine matters, and receive policy, on March 19, 1935, at 10 a. m., and enclosing a questionnaire which you Mr. Karl A. Crowley, the Solicitor for the Post Office Department, will be

desire answered.

present as requested by you.

Your questionnaire contains 59 questions. Most of the questions which you ask can best be answered by the Secretary of Commerce. I assume that you have sent a similar questionnaire to that Department. I shall only attempt to answer the questions upon which we have information secured as a result of the investigation and hearings conducted by this Department pursuant to the Executive order of the President dated July 11, 1934.

Your questions are numbered and the following answers are numbered to correspond with the number of the question.

8. There are 282 American-flag vessels certified for operation on ocean mail routes that made one or more voyages during the fiscal year ended June 30, 1934.

9. These ships actually received as ocean mail pay for the fiscal year 1934 the sum of $29,611,481.99.

10. Two hundred and twenty of the ships receiving mail pay were purchased from the United States Government.

11. The purchase price of the vessels was $41,411,665.10. 12. The original cost of the ships was $516,174,249.48. 13. The world market value of the ships at the time they were sold was $64,972,895.

14. There have been constructed, under the construction-loan provisions of the Merchant Marine Act of 1928, 29 vessels which are now in the ocean-mail service and which have a tonnage of 226,218 tons. There are two other vessels that were constructed under that act that were not in the ocean-mail service. The cost of the vessels that were constructed was $137,642,789.86. The Shipping Board loaned the greater part of the above amount to the contractors at interest rates ranging from one-eighth of 1 percent to 342 percent, but as you have made no request for detailed information as to the amount of these loans, repayments that have been made, the actual investment of the companies and the total amount of mail pay, I assume that you already have or do not desire this information.

15. In this question you ask what percentage of the tonnage certified to operate on the routes is more than 10 years old. This Department has secured from the Department of Commerce a statement of the number of all passenger, combination, and cargo vessels of 2,000 gross tons and over under the American flag as at June 30, 1934. This information is not secured as to mail contract vessels alone.

There have been built in the United States about 9 cargo vessels of a gross registered tonnage of 53,000 tons within the last 10 years. There have been built 53 passenger combination vessels in the United States during that time with a gross registered tonnage of 515,000 tons. Twenty-nine of these vessels, with a tonnage of 226,218 tons, have been constructed under the ocean-mail contracts.

16. The vessels purchased from the United States Government certified for operation under the mail contracts are practically all of them vessels that were constructed during the war or immediately thereafter. There are, however, many much older vessels certified to operate on the mail contracts that were built before the war. I am sure that the Secretary of Commerce can give you the details of this.

23–26. This information was secured by the Department at the time the hearings were held on the ocean-mail contracts and is shown on the table attached hereto marked "Exhibit A." Very truly yours,

W. W. Howes, Acting Postmaster General.

EXIBIT

A Age and tonnage of passenger and combination vessels 2,000 gross tons and over as at June 30, 1934

(Excludes Great Lakes tonnage)

Total

5 years of age and under

6 to 10 years of age

11 to 15 years of age

16 to 20 years of age

Over 20 years of age

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Age and tonnage of freighters 2,000 gross tons and over (excludes Great Lakes tonnage) as at June 30, 1934

Nation

Per- Numcent ber

Gross tons

Per- Numcent ber

Percent

Per- Numcent ber

Per- Numcent

ber

Gross tons

Gross tons

Gross tons

Per- Num- Gross tons cent ber

Num- Gross tons

ber

589

36.3

67

5.0

5

4

24.1 6.6 5.3

7.3

162
40
23

7
22
50
15
13
18

2
32

26,000 1.3

(0.5)
830, 000 42.6
239,000 12.3
102,000 5.2

34,000 1.7
143,000 7.3
229,000 11.8
80,000

4.1
50,000 2.6
71,000 3. 7
13,000 .7
130,000

563
34
22
23
27
80
76
19
17

9
58

27,000 0.6 343

(0.6)
2,818,000 62. 4 474
143, 000 3.1 115

77,000 1.7 125
122, 000 2. 7 76
126, 000 2.8 91
365,000 8.1 108
421,000 9.3 178
99,000 2. 2 37
69,000 1.5 46
35, 000 .8 60
216,000 4.8 97
4,518,000 100.0 1,750

1, 734, 000 20.7

(34,9)
2, 491, 000 29.7

579,000 6.9
460, 000 5. 5
411, 000 4.9
526, 000 6.3
434, 000 5. 2
794, 000 9.5
165,000 2.0
169,000 2.0
234, 000 2.8
380,000 4.5

385 200 57 63 48 55 18 17 19 35 174

2,875, 000

(57.8)
2,080, 000

909,000
248,000
292, 000
218,000
195,000
111,000
60,000
73,000
117,000
731,000

26. 3 11.5 3.1 3.7 2.8 2.5 1.4 .8 .9 1.5 9. 2

310
100

78
105
41
71
81
72
15
52
535

310,000

(6.2)
1, 507,000

415,000
330, OCO
459, 000
158,000
280,000
335, 000
232, 000

50,000

165,000 2,016,000

2.5
4. 5
5.4
3.7

.8
2.6
32. 2

6.7

7, 909, 000 100.0 1,527

8, 377, 000 100.0 1,660

276, 2

6, 257,000 100.0

933

1,947, 000 100.0

5 years of age and under

11 to 15 years of age

Over 20 years of age

Total

6 to 10 years of age

16 to 20 years of age

17.1

1,008

United States.

Percentage
Great Britain.
Japan..
France.
Italy
Netherlands.
Norway
Germany
Sweden
Denmark
Spain..
Others.

1,894

489
305
274
229
364
368
158
115
158
896

4,972, 000

(100.0)
9,726, 000
2, 285,000
1, 217,000
1,318,000
1, 171, 000
1, 503, 000
1, 741,000

606, 000
432,000

564, 000
3, 473,000

33.5
7.9
4. 2
4.5
4.0
5. 2
6.0
2. 1
1.5
2.0
12.0

6,258 29, 008, 000 100. O

Total.

388

I will first ask Mr. Crowley to take the stand.

STATEMENT OF KARL A. CROWLEY, SOLICITOR, POST OFFICE

DEPARTMENT, WASHINGTON, D. C. The CHAIRMAN. We have before us, Mr. Crowley, the recommendation of the Post Office Department to the President with reference to his ship subsidy message. In the message of the President it is stated that the quasi-judicial and quais-legislative duties of the present Shipping Board Bureau of the Department of Commerce should be transferred for the present to the Interstate Commerce Commission. Are you prepared to say what whose quasilegislative and quasi-judicial duties are?

Mr. CROWLEY. I am prepared only, Mr. Chairman, to state to you such facts as were developed at the recent hearings that were held by the Post Office Department. I assume the President means the quasi-judicial and quasi-legislative functions of the Shipping Board and I am not familiar enough with the Shipping Board to state just what they are.

The CHAIRMAN. Does that recommendation come from the Post Office Department as to the transfer of those quasi-judicial and quasi-legislative duties? Mr. CROWLEY. No, sir; that comes from the President.

The CHAIRMAN. I did not know whether it was made by the Post Office Department or not.

Mr. CROWLEY. Why, the Post Office Department is not interested in the administration of these ocean-mail contracts, or any subsidy for the merchant marine. I mean by that, it is not a normal function of the Post Office Department to attempt to administer a ship subsidy.

The CHAIRMAN. You are interested in building up the merchant marine of this country, are you not?

Mr. Crowley. They are, of course, as stated by Mr. Farley in his letter

The Chairman. That is stated and after a very full investigation lasting for a number of days; but has the Post Office Department any suggestion to make as to how we can build up the merchant marine if we eliminate these ocean-mail contracts, or what the subsidy shall be in place of them?

Mr. CROWLEY. The Post Office Department feels that the administration of this subsidy, if it is to be continued, should be placed in the hands of some other Department that is better equipped to administer a subsidy than the Post Office Department. We have pot any experts there who know the needs of commerce, or who are familiar enough with shipbuilding, the cost of maintenance and operation; and, of course, the Post Office Department, not being so equipped to properly administer a subsidy, ought not to have control of it as it has had in the past in connection with the Shipping Board,

The Chairman. Well, has the Post Office Department given any consideration to what form of subsidy shall be substituted for these ocean-mail contracts?

Mr. Crowley. I think not; because as I stated to you, we are not familiar with the needs of commerce.

These subsidies have been disguised as mail contracts and called mail contracts when, in fact, they were not mail contracts. Very few of these routes have any

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