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"Whoever violates any provision of this section or any provision of an agreement as defined in this section shall be liable to a penalty of $1,000 for each day such violation continues, to be recovered by the United States in a civil action."

That would do away with the necessity of bonds under conference agreements.

I have not very much doubt that a good many people would think that such a provision would really put teeth in the conference agreements.

I have taken up perhaps an undue amount of time here, Mr. Examiner, but the whole subject is one of the utmost importance. As I said at the beginning this case here is of the utmost importance. I consider that you have very great powers in this proceeding and I sincerely hope that the Board will exercise them. I think it is a fair implication that when our nonconference friends on the North Atlantic fail to come here and present their evidence, they are entitled to be foreclosed, and to have applied to them the proposition which has been applied to some lawyers in some courts, at various times, that when they did not produce full evidence on their client's behalf, the supposition was that the evidence if produced would have been against them and therefore the decision ought to be against them on that ground.

I repeat that the suggestions I have made here for amendment of the statutes are my own ideas and are subject to revision, discard, or anything else you please. But this is the time to secure stabilization, in view of the code activities which went on for many months, directed to it, and your own activities directed to the same end, and the activities of the Secretary of Commerce's Survey Committee, directed to the same end, and to the purpose of making appropriate recommendations to Congress. We should give at this moment, as I have tried to do, great emphasis to these propositions, for I honestly believe that they are directed to great improvement of conditions in our foreign trade.

I am exceedingly obliged to you.

Examiner TIBBOTT. Thank you, Mr. Hupper.

The CHAIRMAN. Gentlemen, we will adjourn the hearings on the subsidy bill at this point and proceed with the consideration of the water carrier bill (H. R. 5379).

(Whereupon, at 11:40 a. m., the hearings on H. R. 7521 were adjourned.)

PART III, APPENDIX

1029

BLAND BILL

[Committee print, No. 1, Apr. 26, 1935, H. R. 7521, 74th Cong., 1st sess.)

A BILL To develop a string American merchant marine to promote the commerce of the I nited States, to and matinmal defense, and for olisi puljines

Best enacted by the Senate aid House of Representatives of the United States of America in Congress arsembled,

TITLE I DECLARATION OF POLICY

Section 1 It is necessary for the national defense and development of its foreign and den estic con mere that the U-Pted States shall have a merchant marie (1) sufficient to carry at least one half of the foreign commerce of the United States and to provide st. pping service on all routes essential for maintairing the flow of national commerce at all times (2) capable of serving as a ravaluted nullary auxillary in time of war or national emergency, (3) owned and operated under the United States flög by effizens of the United States and so of rated and regulated as to secure to the shipper of American products adequate service and purity of rates to foreign markets and (4) composed of the best equipped, s, fest and most suit ble types of vessels, cor structed in t'e United States and matted with a trained and efficient citizen personnel, It is hereby declared to be the policy of the United States to foster the development and encourage the maintenance of such a merchant marine by the means Yere for express'y provided in 11 Act and by any other meins which the Congress from time to time may deem Lecessary Ins far as not inconsistent with the express provisions of this Act, the agencies of the United States Gove ernment, ef arged with the adr inistration of this Act and shipping laws shall, in such imitastration and in the makit g of rules and regulations, keep m,whyw in view the purpose and objet of the policies hereiti expressed as the Irimary end to be attained

TITLE II UNITED STATES MARITIME AUTHORITY

SECTION 251 (a) A board is hereby created to be known as the “United States Maritime Authority ", and hereinafter referred to as the "Authority The Authority shall be cothiposed of five personis, beteshifter referred to as * members ', to be appointed by the President by and with the advice and consent of the Senate; and if the President shrill designate the member to not as chairman of the Authority, and the Autority may est one of its members as vice chairman The members of the Authority shill be aj pointed as soon as practicable after the enactment of this Act, and shall continue in office for terms of three four, five, six and seven years respectively from the date of their appointment the term of each to be designited by the President, but their mücresiots shall be appointed for terms of seveti years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the member whim he stereeds The members shall be appointed with due regard to their fitness for the efficient discharge of the dat ex imposed on them by this Act Not more fish o e Pember shall be appointed from the male State. Not more than three members stall be appointed from the së me pozitical party A vacaney in the Authority shall be filed in the sathe mit ner as the original appointed – No then her shall take any part in the con mideration or decision of any claim or particular controversy in which he ham a j»«uniary interest.

(b) No member shall be appointed who is in the employ of or ho ds any official relation to any common carrier by water or other personi sublect to this Act or the shipping laws, or owns any stock or hot is thereof or is pecuniarily interested, directly or indirectly, in any personi wubject to fi i× Art No member while in office shill engage in any other business, vocation, or

employment, or hold any official relation to any common carrier by water or other person subject to this Act or the shipping laws, or own any stock or bonds thereof, or be in any manner pecuniarily interested, directly or indirectly, in such person.

(c) The duties of the Authority may be so divided that under its supervision the directorship of various activities may be assigned to one or more members. Any member may be removed by the President for inefficiency, neglect of duty, or malfeasance in office. In case of a vacancy in the Authority the remaining members shall exercise all its powers. The Authority shall have an official seal, which shall be judicially noticed.

(d) The Authority may adopt rules and regulations in regard to its procedure and the conduct of its business. It may employ, within the limits of appropriations made therefor by Congress, such attorneys as it finds necessary in the conduct of its work, or for proper representation of the public interest in investigations made by it or in proceedings pending before it, whether at the Authority's own instance or upon complaint, or to appear for or represent the Authority in any case in court or other tribunal.

(e) Each member shall receive a salary of $12,000 per annum. The Authority shall appoint a secretary at a salary of $7,500 per annum, and employ and fix the compensation of such attorneys, officers, naval architects, special experts, examiners, clerks, and other employees as it may find necessary for the proper performance of its duties and as may be appropriated for by the Congress, and shall, whenever possible, in such employment, employ qualified present employees of the United States Shipping Board Bureau or United States Shipping Board Merchant Fleet Corporation. The President, upon the request of the Authority, may authorize the detail of officers of the milltary, naval, or other services of the United States for such duties as the Authority may deem necessary in connection with its business.

(f) With the exception of the secretary, a clerk to each member, the attor neys, naval architects, and such other special experts and examiners as the Authority may from time to time find necessary to employ for the conduct of its work, all employees of the Authority shall be appointed from qualified present employees of the United States Shipping Board Bureau or United States Shipping Board Merchant Fleet Corporation, or from lists of eligibles to be supplied by the Civil Service Commission and in accordance with the civilservice law, when no such qualified Shipping Board employee is available.

(g) The expenses of the Authority in the conduct of its business, including necessary expenses for transportation, incurred by the members of the Authority or designated employees under its orders, in making any investigation, or upon official business in any other place than in the city of Washington. shall be allowed and paid on the presentation of itemized vouchers therefor approved by the Chairman of the Authority, or a designated employee of the Authority.

SEC. 202. The Authority is authorized and directed:

(1) To study all national maritime problems, and their proper relationship to trade and commerce;

(2) To analyze and edit pertinent data and develop plans for construction and efficient operation of vessels, taking into consideration the benefits accruing from standardized production where practicable;

(3) To determine, under rules and regulations to be prescribed by the Authority, the amounts of direct financial aid to be paid under contracts awarded pursuant to titles III and V of this Act; and

(4) To study means by which the revenue of contractors may be increased by advertising and solicitation on the part of operators, and wherein economies may be effected.

(5) To establish and maintain liaison with such other departments and boards of the Federal Government, and with representative trade organizations throughout the United States, as may be concerned, directly or indirectly, with any movement of commodities in foreign commerce, for the purpose of securing preference to vessels of United States register in such shipments.

INVESTIGATIONS

SEC. 203. The authority shall make studies of and make a report to Congress as soon as practicable on

(1) The scrapping of old or obsolete tonnage owned by the United States or in use in the merchant marine;

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