The Postmaster General is further authorized to employ such attorneys, technical experts, clerks, and other employees as may be necessary to carry out the provisions of this order. THE WHITE HOUSE, (Signed) FRANKLIN D. Roosevelt. DEAR MR. BLAND: On behalf of the Cosmopolitan Shipping Co., I had intended to ask for a few minutes before your committee to propose an amendment to House bill no. 7521, which is the bill dealing with ship subsidies. I understand, however, that you are desirous of closing these hearings today, and therefore will refrain from asking for time to appear before your committee. I am, therefore, submitting to you a suggested amendment which we desire to have inserted in the bill, and I respectfully request that this suggested amendment be printed in the hearings. The amendment is short, and its purpose is so plain that it seems to require no particular argument to support it, for I am sure it is the intent of the committee to restrict needless competition between American-flag services. To grant financial aid to two lines serving the same route would be justified only in the most exceptional cases. Respectfully yours, PROPOSED AMENDMENT TO H. R. 7521 LOUIS TITUS. Add on page 40 at the end of part 4, title 5, a new section, as follows: SEC. 519. Should the Authority determine to grant financial aid under this title to one of two or more American-flag services between the same American port or ports and the same foreign port or ports, the Authority shall regard as essential elements entitling a service to preferential consideration, the experience, the length of time during which such service, route, or line has been established, and the volume of cargo which has been carried by such line: Provided, That only in exceptional cases, and where the Authority determines that two or more services on the same route are essential to serve the same, shall financial aid be granted to more than one applicant covering said route. FREIGHT AND TRAVEL AGENCIES AMERICAN STEAMSHIP & TOURIST AGENTS ASSOCIATION, INC., Hon. SCHUYLER OTIS BLAND, House of Representatives, Washington, D. C. DEAR SIR: We have read with great interest of President Roosevelt's proposal that a direct subsidy be granted to American shipping. While our association heartily endorses Government help to American shipowners with a view of enabling them to compete with foreign interests and of developing a strong American merchant marine, it seems to us that since the question of subsidy involves the earning power of the steamship compaines, anything which would increase that earning power is an important element. If American shipowners were to depend exclusively upon Government subsidy and would neglect the regular channels of trade in order to maintain and develop their services, such Government help would be but a burden upon the taxpayers and would fail to bring about the desired effect. Our association is composed of travel agencies located all over the United States. A major portion of the passenger transportation to and from United States ports comes through, or is originated by, the travel agents. They are not merely sellers of tickets but, on the contrary, experience has shown that the travel agents are responsible for the origination of business through advertising and personal contact. Many thousands of dollars are spent each year by De travel agents, not only in furnishings service in the sale and delivery of tickets, arranging and operating itineraries, ete, but also in presenting to the public the The advantages of trave and the attractiveness of vario is routes and loen, ties money, so spent redounds to the benchit of the transportation companies, partieuary the steamship lines, since it awakens the desire of travel and provides passer gers for cruises intercoastal service, and voyages to foreign countries. Thas the mines spert by travel agents increases the business of the steamship companies and at the same time reduces their promotion and sales expetise Nuce the earrings of the travel agents depend, for the most part, on commismore received for the sa e of tickets, travel agents wii naturainy exert their efforts in the pre motion of services which pay the highest commUMMIOTAM. Unfortunately, an analysis of the rate of commassion paid by steamship compares reveals the fact that some Americati slappit g companies are amongst those paving the lowest rate of commission We refer, for instance, to the folowing De Lines 5 percent on around-the-worid and interecastaï services 5 percent on intereoa tai and west coast of South America services. Pirima Picino Line - 5 percent of al fereoastal service. Sarannah Line 9 percent to Savanna i Southern Pacire Line 3 percent on services from New York to New Orleans. Matoon Lame 5 percent on Pacibe const services to Honolulu and South Seas, Cle-Mallory Lanen - 5 percest New York to Fiori in service. in The 5 percent commission pa. I by the above steamship companies has a twofol-1 hertrag in the first place, the agents do not receive an adequate return for their servi ex; in the weund place, their abuty to utilize to its fun degree their case.ty for attracting business for the steamship companies is impaired connection with cruises and travel to the east coast of South, America, many of the steamship compares have recognized the inade, iacy of e minissi ns pres Vine's paid and are now payur g 10 percent commopin, white ali Irans-At autio steal". ives of which the United States Lanes are members have about 2 years ago, made a slight increase in their rate of commission from 5 percent to 6 percent ine steamship companies above mentioned, however, have failed to recognize the advantage which they would derive and still pay the lower Suce them eompanies would be entitled to receive a direct subsidy from the Government, and since a factor in 'e amourt of the wuhmudy, as well as the heeemity for its being paid, is the abiity of the steamship compares to earn a return upon their investment, we respectfully urge upon you that in the cona. deration, of the ship-subsidy proposal you also consider the fairness and practical advantage of requiring the payment of a minimum 10 percent commission on passenger travel by the benef. aries of the Government wibandy İhere is, of course, the ad uitional thought that the number of thousands of travel ager ta are citizens and residents of the United States. Increased cartilīgs to them would mean increased having power and increased revenue to the Government in the form of taxes Should you desire any additional information or supporting data in this matter, we shall be piensed to furnist it Trusting that this will receive your consideration, we are J. V. Benar, Secretary, NATIONAL ASSOCIATION OF FOREIGN FREIGHT Hon Schuyler Otis Brand, Churman House Committee on Merchant Marine and Fisheries, Washington, DC. SIR May we refer to a hill. HR 7′21- "to develop a strong American merchart marine, to promote the commerce of the United States, etc, whch you intr -1,ced in the House, and which was referred to the committee of winch you are arman We at all appreciate it if you will give for spieration to letter, as per copy attached, the original of which, as indicated, we lave sent to Senator Copeland. In the interest of brevity, we do not feel constra ved to harden your committee with a further ree.tat on, but we shall, of course, be glad to endeavor to furnish any further inform ation you may desire Yours respectfully, GK BERKEY, Prendent. MAY 10, 1935. Hon. ROYAL S. COPELAND, Senate Office Building, Washington, D. C. DEAR SENATOR: We are informed you introduced a bill (S. 2582) to develop a strong American merchant marine, to promote the commerce of the United States, etc. Few persons not engaged in the business are aware of the extent steamship freight brokers and forwarders and tourist agencies assist steamship companies in the solicitation and development of freight and passenger traffic. It is true that some of the steamship lines have branch offices in a relatively few of the most important cities of the United States and that through those offices the traveling public is able to obtain information in respect to sailings, accommodations, rates of fare, etc., and it is also true, but to a more limited extent, that some of the steamship companies maintain freight department offices in half a dozen cities, but most of the information which the traveling and shipping public requires, not only to answer sepcific inquiries but also with a view to developing and stimulating business in which steamship companies are interested (freight and passenger), is furnished by tourist agencies, forwarders of foreign freight, and steamship freight brokers. The tourist-agency business in respect to passenger traffic is better known to the average man in the street than is the case with the facilities offered by oceanfreight brokers and foreign-freight forwarders. We do not believe it is an exaggeration to say that probably 90 percent of all export freight traffic is booked with the steamship lines through forwarders and freight brokers. These forwarders of freight to points abroad, and freight brokers are established at every port in the United States as well as in all important centers throughout the country, especially in the industrial States such as New York, Pennsylvania, Ohio, Michigan, Indiana, Illinois, Wisconsin, Missouri, etc. The number of firms engaged in this business is conservatively estimated to be about 750, and possibly as many as 1,000 employing in the aggregate probably 5,000 persons. Most of the inquiries of exporters and importers with regard to routing of foreign freight, sailing opportunities, rates, etc., are sent to one shipping agent or another with whom the shipper and/or the consignee is in touch, and they answer the inquiry most of the time from their current knowledge of the situation without the necessity of taking the matter up with the steamship company until it comes to the point of booking the freight and/or actually effecting the shipment. The business we attempt to describe is well established and has been for several generations. Steamship lines in general recognize the useful service performed by foreign shipping agents and freight brokers. As we see it, from our standpoint the only danger to a bill such as you have proposed is that it may be subject to misinterpretation to the effect that under such a law the steamship companies, or some of them, may feel that it would either be illegal or improper to continue the payment of ocean-freight brokerage, which is an important portion of the income of most of the firms and individuals acting as forwarders and freight brokers. With a view to removing any uncertainty on this point, may we suggest that in part IV (provisions applicable to financial aid generally), section 517, clause (a), be amplified by adding: "The contractor is to make diligent efforts to attract business, enlisting the services of all recognized tourist agencies, freight brokers and forwarders to whom appropriate brokerage or commission is to be paid." Your good self and your conferees will undoubtedly know how best to protect the situation we have endeavored to describe, i.e., at what point in the bill and in what language the situation may best be covered, but the above will, we believe, make clear the point that the important business of the tourist agency in connection with passenger traffic and the freight broker and forwarder should not be jeopardized due to the fact that the business is not specifically recognized in a bill which apparently is designed to be the rule and guide of many aspects of overseas transportation of passengers and freight. Yours respectfully, NATIONAL ASSOCIATION OF FOREIGN Now YORK Fazight Forwarders and BROKERS ASSOCIATION, Inc, Hon Senttien Oris BrAND. Hrane Office Building, Washington, DC Din Sin There has been introduced by you a bill (H. R 7521) providing for whip aritmi hes and other matters While this bull is in the process of consideration, we believe that, among other things arrangemer ta should be made to provide the contractor with sufficient mea is to secure every assistar ce in the solicitation of business There is already avanable a large and efficient soliciting force through the mevi.m of tourist agencies, freight brokers, and forwarders located throughout the entire country The steamship lines could not very well undertake to duplicate the organizations which have been built up over a great period of time, such as are represented by forwarders and tourist agencies except at tremendous eijer se The lines have avalable to them the services of many thousand people a.ready engaged in this business Live 2. section 202, paragraph 4 decrees the authority to study means by w'. le tue reven, je of contractors may be increased by advertising and solo fation and to t'as end we urge the insertion in paragraph 4, section 317, and following paragraph A, of the folowing cla .se: Ite contractor is to make diligent efforts to attract business enlisting the services of all recognized tourist agencies freight brokers, at, i forwar iers to whom appropriate brokerage or commision is to be paid " For very tua y years it has been te recognized practice of the steamship lines to pay brokerage or commission to tourist agencies, freight brokers, and forwarders for which, these agencies have performed a very valuable service And, to a ust the lives in performing the proper fun tions as outlined in the bill, it World sertti essential that provisor, «fould be made in the bill self We urge your support of this provision and should be very glad to have some one call upon you at your request Very truly yours, JOHN H. FAUNce, Prendent. INLAND WATER CARRIERS May 14, 1935. Re Brief for amendment of H. R. 7521 (Committee print no. 2) proposed by Mississippi River Systern Carriers Association Hon. SCHUYLER O. Bland, Chairman, Committee on Merchant Marine, Radio, and Fisheries, Washington, DC. Dran Sin Confirming my conference with you in reference to the amendment of the ship-subsidy buil, H. R. 7621, proposed by me on behalf of the Mississippi River System Carriers Association excluding inland river carriers from the b'll and your suggestion that I file a brief in support of the amendment, I submit herewith the proposed amendment and a short summary of the reasons which we present in its support. We urge the amendment of title 7, "Regulatory Powers", section 701, paragraph 2, page 42, line 19, by adding the words “except on inland rivers”, so that the paragraph will read as follows. "I **The term 'common carrier by water in interstate commerce' for the purposes of this act shali include every cothinon or contract carrier by water, ezcepi on inland rivers, engaged in the transportation for ture of passengers o ṛproperty between one State of the United States and any other State of the I nited States.” for the following reasons: 1. This bill was drafted for the purpose of providing a subsidy for the American merchant marine and to regulate ita rates and operations, by amen. Pucit to tie Shipping Act, the Merchant Marine Act, and the Inter-Coastal Shipping Act, the jurisdiction of which acts is confined to shipping on the high scas, intercoastal and great lakes. They do not cover inand-river carriers 2. As of the provisions of the bili are inapplicable to river carriers. 3. The inland-river carriers have never received nor requested any subsidy and will not receive any under this act. 4. The paragraph which we seek to amend and which otherwise would include inland river operations, I am advised, was proposed by a representative of coastwise shipping who sought to include his operations under this bill and was not intended to include, as it does by implication, inland-river carriers. There has never been any demand by shippers or inland-river carriers for their inclusion in this act and it will certainly not serve the public interest to include them under its jurisdiction. On the contrary, because of the wide contrast in equipment and operations between the river carriers and ocean and Great Lakes carriers and the fact that this act is obviously not designed to cover river operations, their inclusion under its jurisdiction would create confusion, difficulty in administration and great harm instead of help to the inland river carriers. I respectfully urge that your committee by this or any other appropriate amendment exclude carriers operating on the Mississippi River and its tributaries from the operation of this act. II I also urge our exclusion from the act in view of the proposed amendment of the ship subsidy bill to include the limitation of liability provided under the British law which distinctly applies only to ocean shipping. We therefore concur in the request of the Tugboat Owners Association for the adoption of the following amendment to the bill in the event that the proposed amendment concerning limitation of liability is inserted therein: "This Act shall not apply to tugs, or barges, ocean-going or otherwise, or to cargo vessels, including canal boats, tow boats, barges, lighters and other nondescript, nonpropelled vessels used principally on lakes or rivers or in inland navigation; nor shall anything in this Act contained be held to repeal or modify, as to such vessels or crafts, any Statute of the United States, dealing with ship owners liability." In support of this request we submit that the present limitation of liability under existing statutes has operated without hardship upon and has been entirely satisfactory to passengers, shippers, and carriers on the Mississippi River System, and there has been no demand for this proposed legislation from that source. Respectfully submitted, MISSISSIPPI RIVER SYSTEM CARRIERS' ASSOCIATION, By HERMAN A. BAYLESS, Counsel. MISCELLANEOUS NORFOLK ASSOCIATION OF COMMERCE, The Honorable S. O. Bland, House Office Building, Washington, D. C. DEAR MR. BLAND: Please find enclosed attested copy of a resolution adopted by the board of directors of this association on the second instant favoring the program of the President to provide for subsidies for American flag ships and for financing on reasonable and proper terms the contruction and reconstruction of vessels. We earnestly hope that you may find it entirely consistent to lend your efforts accordingly. Yours very truly, RESOLUTION W. S. HARNEY, Manager. Whereas it is deemed imperative that the United States of America have a merchant marine adequate to meet its commercial and military needs; and Whereas the President has recommended to Congress the enactment of legislation to provide subsidies, which are indispensable to the maintenance of such a merchant marine; and Whereas in order to meet the capital requirements incident to the construction and reconstruction of vessels, it is deemed necessary that the Government be prepared to grant or provide mortgage loans on vessels on reasonable and proper terms, there being grave danger that such loans from private sources may be unavailable; now, therefore, |