Be si Resolved, That the program of the President, providing for subsidies for American flag shups be, and the same is hereby heartily endorsed; and be it furtier kesnited. That the legislation which carries said program into effect should make mutable provision for financing, on reasonable and proper terms, the construction and reconstruction of veascus, and be it further keaniel, That copies of this resolution be forwarded to the Senators and Representatives of Virginia. ine foregoing resolution adopted by the board of directors of the Norfolk Association of Commerce this 24 day of April 1955 Attest WS HARNEY, A. B. SCHWARZKOPF, Prendent. Daughters of THE AMERICANn Revolution, Hon SCHUYLER OTIS BLAND, Chairman Merchant Marine and Fisheries Committee, House of Representatives, Washington, D. C. DEAR MR. BLAND: It is my pleasure to transmit to you the following resolution which was adopted by the forty-fourth continental congress of the National Bociety of the Daughters of the American Revolution **Whereas an adequate American merchant marite is an essential part of the national defense, to serve both as a naval and a military auxiliary in time of war and national emergency, and "Whereas foreign subsidies and lower construction abroad compel the United States to provide money and other aids to its merchant marine; and **Whereas legislation is being formulated in accordance with recommendations of the President of the United States to provide for a new merchant marine, privately owned and operated, built in the United States and manned by American e.tizens: Now, therefore, be it **Resolved, That the National Society, Daughters of the American Revolution, endorse this program and urge upon Congress of the United States the passage of necessary legislation; and be it further "Resoured, That a copy of this resolution be sent to Hon Daniel C. Roper, Secretary of Commerce; Hon. Schuyler Otis Biand, chairman Merchant Marine and Fisheries Committee of the House; Hon. Royal Copeland, chairman of Commerce Committee of the Senate.” Sincerely yours, HELEN N. (Mus. H. Boraxx) Joy, Recording Secretary General National Society, DAR. The Propeller Club of the United StaTES, Hon 8 Oris BLAND, House of Representatives, Washington. Dear CongresSMAN At a meeting of the Board of Governors of the Propeller Club, Port of Hampton Roads, the following resolution was unanimously adopted "That this club goes on record in favor of the Bland-Copeland bill recently Introduced in Congress setting up a maritime authority, and providing legislation that controls shipping" This is for your information. Yours sincerely, WM. GRAHAM, Secretary. Mr. J. H. Graves, 44 Whitehall Street, New York, N. Y., is in entire sympathy with the President's program and the recommendations made by the Department of Commerce. He also states: "I am fearful that shipbuilding will stagnate without some help from the Government in the way of loans or a sufficiently attractive subsidy to insure the safety and some return to private capital. And while it is true that all of the abuses which the President mentions should have been wiped out long ago, it is also true that had the Government exercised its rights of foreclosure at the time they were legally entitled to do so and resold or reorganized the various companies which are in arrears as a bank or private capital would have done, they could undoubtedly have gotten these various companies into the hands of people who would fulfill their obligations to the Government. Unfortunately, this was not done." MIDDLE WEST FOREIGN TRADE COMMITTEE, Cincinnati, Ohio, April 30, 1935. HON. SCHUYLER OTIS BLAND, DEAR MR. BLAND: We have had the pleasure for many years of working with you and the House Merchant Marine and Fisheries Committee, in the interest of the American merchant marine, and we are indeed gratified that the administration is at this time sponsoring an adequate American merchant marine, so vigorously. We are further pleased indeed that this question has never become a partisan political question, but has been viewed by the members of both major parties as a national question, having to do with our economic well-being and our national defense, two of the most important aspects of our national life, that do not lend themselves to partisan politics. I am writing you with special reference to Senate 2582 (Committee Print No. 2). On the whole, the parties who had a hand in drafting this bill are to be congratulated upon its comprehensiveness and the intelligent and patriotic understanding of the merchant marine question. We believe that "Title 1, Declaration of Policy", is a sound statement, and cannot be reiterated too often. Our committee is thoroughly in accord with the establishment of a United States Maritime Authority to be composed of five members. However, we have some misgivings with reference to the said authority, and should it not be regional in its composition? We believe that wide-spread participation in the building up of the American merchant marine creates a broader interest in its problems, and feel that it should be regional to the extent of having one member from the States touching the Atlantic, one from the Gulf, one from the Pacific and two from the interior, and one of these may be appointed from a Great Lakes State. These men should be selected for their executive ability and enthusiasm for and knowledge of the tremendous problems confronting the American merchant marine. With reference to title 3, it is our view that the mail contract system is not s complete failure, and that the defects in the 1928 Merchant Marine Act were largely due to failure to provide proper administration of the mail contracts. If the mail contracts are continued on a per voyage basis, we feel that this should be sufficient to overcome operating differentials, and in this case all American steamship lines receiving this mail subsidy should be required to carry United States mail without any further charge to the Government. Of course, if in the future mail contracts are not included in any subsidy and it is contemplated to pay for the mail on a poundage rate, there would be no necessity for such contracts. However, as we view it, it would seem wiser to provide for a continuance of the ocean-mail contracts for the carriage of mail and commerce on essential trade routes as determined by the Maritime Authority. If these mail contracts were not sufficient, there should be provided adequate compensation to the ship lines in trade promotion service. We are in hearty agreement with the suggestion in the bill to provide for compensation to shipowners for such alterations and additions to their vessels as to make them available for the Army and Navy in case of national emergency or national defense. Our committee is on record as supporting the ideas suggested in title 5, providing for a construction differential subsidy, as it is well known and is common knowledge that the cost of shipbuilding in the United States is far in excess of that of any country with which we compete. With reference to title 6, it is our view that the construction loan fund should be continued, and administered by the United States Maritime Authority. We would like to suggest that aid should only be given to vessels operating on regular foreign trade routes which have been determined essential by the Maritime Authority, and that such aid should be distributed so as to equitably serve the commerce of the ports of the Atlantic, Gulf, and Pacific. We are somewhat at a loss to interpret the reference to section 7 of Merchant Marce Act of 1920, and believe that if the Congress intends that the Maritime Autuority @'all in esta' ishing the American merchant marine carry out the pri- cipies of section 7 of the 1920 act, wich was reallrmed by the 1928 act, tus ongst to be specificalis stated in the present bui, in order that preference shaorld be given to steamship lines and services who have the support, financial and otherwise, of the domestic communities primariis interested in the maintenance of the ares In other words, we sho... i be very much gratited if section 7 were incorporated in the new act, uneq avocaty and specifically In sapport of this, we believe that wide spread ownership of steamship lines, traff e control put into the hands of those who are familiar with their own local panah lemas as múð, more desrat je and will have a ten deney to prevent monopolies and the dominati in of one sect, ti of our country by interest radicated in some other section of the co intry The South Atlantic States, the Gulf States, and the Maddie Western States will be more greatly interested in the full development of the American merchant marine, if they know and are assured that they are aley ately protected in the matter of it deper dence of ownership and operation of tiene services from the various constal sections of the United States Sao nd you desire that our committee be represented at the hearings, in the person of the chairman, I am at your command. Very sincerely yours, MALCOLM M Stewart, Chairman. [Telegram] Hor Sentvær Oris BraND, Ho de Ofer Bailding Washington, D C 1+ Cincinnati, Onto, May 7, 1935. Thanks for your letter May 3 It is our view that we could be more helpful it. 8iggestions for muretant-marine legisstion by personal appearance before Vat committee. However, we appreciate that you are wing ton ¿bmit our letter of April 30 as part of the record in the hearings on the Merchant Marine Act of 1955 ar 14 pe that you will do so Weaves IT & Tew Comiti, t'ex pet Title der constraction and operat gar brudy has been rewritter a dd it is not clear wat operating witwaly if any {oa + s »』 for ཏན མཆན » DOW IT) 86Tvice, in fact, mar y of the provis. tis are tot clear It is KIT VIEW *hat 1', se provisions a? i'd be more }༄tw«¥ན Control of rates by eonferctices on De part of the Authority ceful to American at prin meteng fire 25 eur petition, anti saine A. wall stil, exist Our cotatiuittes fri.. Televes that private interests beerenatated by ali m2 arai: the estabas unt of the American merebant We feel that "a eurstraction loai fexture of previocis nets should be «dad view with great right the མི་མངོན ་པའི in that ravy varde he pue que I to comp te w ??, private ship' mitiga es for Peer str jeting of itas renant s'.js We are not wire that were! 5204 of tte 2 dutely arms tion 7 of the 1928 act, but as me t r 3, title 10, takes care of that pa t 101 › of roumatice print, The M 1e West is interested in - operating out of the varie in ecostal divist red t .I te 1 Stat a f I that every safeguard - -24 he provided for owners' ip n. i traie control of the lines operat out of the At votie. Gulf and Pacife to placed in the hat is of local companies having the muj port financial and Craise, of the comm irities primarily interested in these routes and services, W. M • tie A athority should be mostrarte 1 by Congress to en, utsliv distrilate the benefits of the leg sation, a id appropriat, na ma de by Congress from time to t me widely among the various coastal divisions of the United States in or ler tist there may be no dominance in our shipping of one section of the Unated States over another section – Njeh dominance is fraught with great danger to torpakin interest sow di as the shippers and recetters – We are heartly ir favor [Goverment aid to take care of eo istr tion differentiaia, operating differena i-itional cost caused by recommendations of Navy and War Departments an 1 aimo to take enre of added expense in developing and plot eering trade routes to new and undeveloped sections of the world However we feel that these enn P be taken care of in the form of mail eot tructs if a ¦ vessels are required to carry a.... the man offered by the Government without further cost, and the Congress specifically makes it el ar that the mail pay is for the purpose indicated and is not merely for carrying the mail 143 MALCOM M STEWART, Chairman Mville West Foreign Trade Committee NEW ORLEANS, February 28, 1935. Hon. PAUL H. MALONEY, Congressional Office Building, Washington, D. C. DEAR PAUL: I note with keen interest that the President has determined to present to Congress a bill which will subsidize American ships in foreign trades. In this connection, I am of the opinion that no nation has paid more and received less than our country has under the various forms of contracts entered into between the operators and the Government since the very beginning of the Government building and owning ships. The first contract entered into was during President Wilson's administration, at which time the United States Shipping Board was created. The title of this contract was the "M. O.-4 contract. As I recall this contract, without having one before me now, it specifically stated that the operators were to receive a fixed commission for handling the ships, based on the revenue obtained; and further, that all special contracts, refunds, etc., that they were able to make should be turned over to the Government as credits. This form of contract, I might say, had teeth in it, and had it not been changed and new contracts entered into with the senatorial investigation and lastly the Post Office investigation, I am quite sure the Government would have been able to obtain considerable refunds, which would have necessarily offset some of their losses. The next contract entered into was known as the "lump-sum contract." Very naturally, every possible cost was built yp so that the Government would pay the highest possible amount for the operation of their vessels. In the above investigations referred to, I feel quite sure that the records will sustain this assertion. Under the present set-up of mail subvention, the same conditions exist as under the lump sum, except that there were, I understand, certain provisions providing for the setting aside of funds for replacement of the present ships with new ones as these became old and obsolete, and, according to a great many experts regarding obsoleteness, time for replacement is pretty near at hand. In fact, in the Far East trades our ships today can just about make half the speed of the ships they are competing with. I am 100 percent for an American merchant marine. First of all, in my opinion, it is absolutely necessary that every officer and most of the men employed on the vessels should be members of the Naval Reserve. I think recent accidents at sea on American-flag ships justifies strict Government supervision of the personnel aboard its ships. The next thing that would encourage the citizens of this country to endorse and make provisions for an adequate merchant marine would be that, as long as the Government provides the money for same and pays a subsidy which enables these vessels to operate, every safeguard regarding costs should be strictly supervised by the Government, and that all purchases or services required should be submitted by bids to competent American firms, copies of same presented to the Government before final action by the operators for a decision, and that in no case, excepting emergencies, should the operators be permitted to expend for the purchase of anything needed, repairs or services, for amount exceeding $200 without receiving bids for same. In this way the Government would know just as much as amy operator about the cost of operating the American merchant marine. I am sure that if this system is put into effect that those of our Government who are in charge of our American merchant marine will be surprised at the difference between the present cost of operation and that which would result under the system as suggested above. I note in some of our papers where it is the purpose of the President to make comparisons of costs of operation of foreign ships with our present set-up on our ships, and to make that difference available for the American shipowners, due to a different standard of living, etc., in this country as compared with the standard of living of other countries. This should be. I feel certain that after a policy of building ships with some degree of standardizing same the President will be surprised at the little difference in cost of building same as against the cost of building ships in foreign shipyards. There is no doubt but that repairs in this country, as compared with costs of repairs in other countries, are and should be somewhat higher. When I say standardization of ships, I mean for instance, in the Far East trade, and I am particularly thinking of our Gulf trade, we should have ships of say 10,000 tons deadweight either Diesel or steam young furl oil instead of coa' on thene jong voyages, wijeh, very 1 cumnat, 3 is essential as most of the freight is measurethert both ways, and by being ol as fel cona derable anace for cargo i is avatable as against that of the use of eval These whilțim shoul↑) sve na snced of tot jema tran is or 20 arote, a. d by bending five or six of these si ps of the same type in our shipyards in this can try, I am quite certain the spread in costa between this and that of foreig" cou tries would not be nearly a great as some of our frier ds seem to Pink it is In sumta'g up, if we give American steamslup operators carte blanche in arriving at their costs, the conditions as reported or both, the senator, al investigne to and the Post Offer cosest gation, cannot help bit continue as in the past Trusting that you will appreciate the motives of this letter are simply to keep our American thereba't marine at the very highest possible degree of otheiency and economy, and with kindest personal regards, I am, Very truly voits, W. S SMITH NAVY DEPARTMENT'S VIEWS NAVY DEPARTMENT, Washington, May 10, 1935 The Chairman, COMUTTER, EN Man most Marine and FishERIES, My Dear Ma CheRMAN The Navy Department has noted the introduction of the HRH 721 To develop a strong America i merchant marine, to note t commerce of the United States to and national defense, and for ** et pratposer, and ita reference to your con mattce, The Navy Department recommends certa,, aŭendiner ta to the sections of t'e * i. listed below. The word g of poacy by unferer ce ignores the constwise merchant ps and their personnel engaged in coastwise traie are just as prtant to the national defense as those ci gaged in foreign trade. It is recomm mer ford f? at lines 4 to 7 of section 1, page 1, in all en led to read as fogows SECTION 1 It is necessary for the national deforme and development of its fore gu and domestic commerce that the United States shall have a merchant marize 1 withcient to carry its domestic water bore commerce and at least use-half of the foreign commerce, ete" Section 201 In order that the two departments of the Government most interested in the development of the merchant marine stad be represented on the Authority with the power to vote equally with the other meribers, and in order to increase the stability of the Authority without correspor dig increase of expense, the Navy Department recommen, is that the Secretary of the Navy ani the Secretary of Commerce also be members of the Authority, in addition to the five persons authorized in section 201 They would serve without any additional pay, and would not be subject to the restrictions as to political party, State of origin, or length of term. It is recommended, therefore, that section 201 be amended by adding thereto a new subparagraph b as follows ** The Secretary of the Navy and the Secretary of Commerce shall be members ex-officio of the Authority." Section 510 b 2 makes no provision for determining what vessels would be otherwise useful to the United States in time of national emergency. This determination should be made by the Authority and the Secretary of the Navy. It is recommended that section 510 bị (2) be amended to read as follows. 2) a vessel which has been determined by the Authority and the Secretary of the Navy to be otherwise useful to the United States in time of national emergency." Section 802 In the interest of national defense it is highly desirable that the personel under instruction at the Merchant Marine Academy and the training schools be enrolled in the Merchant Marine Naval Reserve in appropriate graden and ratings, and that graduates of the Merchant Marine Academy be commissioned as officers in the Merchant Marine Naval Reserve. It is also desirable that the regulations issued by the Navy Department govern the training of the personnel insofar as it relates to their duties as members of the Merchant Marine Naval Reserve, srce in time of war the ships would be under the jurisdiction of |