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regulations, and practices of steamship conferences, associations, combines, and agreements.

18. It is a deplorable situation, where one arm of the Federal Government is responsible for the expenditure of large sums for harbor and waterway improve. ments, and another arm of the Federal Government is either without authority and power to, or will not, initiate action to prevent private shipping interests, through combines, conferences, associations, or otherwise, to nullify the full value of the expenditures made through the arm of the Federal Government first mentioned. The proposed amendment will coordinate and rectify this situation.

19. The amendment is not meant to, and will not, force any steamship company to extend service. The amendment simply makes it possible for any steamship company to extend service and apply rates for such service according to the desires of the particular steamship company without interference from any other steamship company, either directly or indirectly.

WASHINGTON, D, C., April 29, 1935. Hon. SCHUYLER O. BLAND, Chairman Committee on Merchant Marine and Fisheries,

House of Representatives. DEAR MR. CHAIRMAN: Supplementing my letter to you dated April 27, I now enclose three copies of Senate Joint Resolution No. 16 (California) relative to Federal legislation granting subsidy or assistance to the American Merchant Marine introduced in the Senate of California April 24, 1935. Will you kindly incorporate the resolution referred to in my statement of April 27?

In this connection I also invite your attention to the printed hearings of the United States Senate Committee on Interstate Commerce and the Merchant Marine subcommittee of the Committee on Commerce, United States Senate, part 2, Water Carrier Act, 1935, wherein is printed (on pp. 1295 and 1296) my letter dated March 6, 1935, addressed to Hon. Burton K. Wheeler, Chairman Committee on Interstate Commerce, United States Senate, together with a copy of my bill H. R. 4526. Respectfully submitted.



SUBSIDY OR ASSISTANCE TO THE AMERICAN MERCHANT MARINE Whereas it is deemed desirous by the Government of the United States to give consideration to the development of the American Merchant Marine through assistance by the Government in the matter of sale of vessels constructed by the Government, ip, the matter of subsidies, mail contracts, or otherwise; and

Whereas steampships operating over the various trade routes of the world. are grouped into conferences or associations granting to the shipping industry a certain amount of self-government and coordination in the matter of rates and services; and

Whereas under Federal laws enacted by the Congress these conferences or groups are relieved of the Sherman Act preventing combinations in the restraint of trade; and

Whereas these conferences in the majority of cases, having a preponderance of foreign ownership through their policies and rules, have seen fit to prevent their members from serving certain American ports; and

Whereas it is believed to be a sound policy for the Government of the United States to require that all vessels receiving assistance from it through the medium. of subsidy, ship purchase, or otherwise, should partake in a free and unre stricted flow of traffic through all ports of the United States which have been improved by the use of Federal funds: Now, therefore, be it

Resolved by the Legislature of the State of California, That the Congress of the United States, in connection with any legislation granting subsidy or assistanee to the American merchant marine, be requested to incorporate therein the provision that no steamship line operating vessels belonging to the United States or purchased or being purchased from the United States or any agency thereof; or any steamship company receiving from the United States or any agency thereof any subsidy or payment through contract for the carrying of mails, or otherwise, shall belong to any conference or association relieved of the Sherman Act which, either through official acts or policies, prevents or at


tempts to prevent, either directly or indirectly, the serving of any port within the continental limits of the United States located on any improvement project designed for the accomodation of ocean-going vessels authorized by the Congress or through it by any other agency of the Federal Government; and be it further

Resolved, That a copy of this joint resolution be transmitted to the President and to the Vice President of the United States and to each Member of the Senate and of the House of Representatives of the United States.

(H. R. 4526, 74th Cong., 1st sess.)

A BILL Amending the Shipping Act, 1916, as amended, for the purpose of further

regulating common carriers by water

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That it shall be unlawful for any common carrier by water, either directly or indirectly through the medium of an agreement, conference, association, understanding, or otherwise, to prevent or attempt to prevent any other such carrier from extending service to any port located on any improvement project authorized by the Congress, at the same rates which it charges at its nearest regular port of call, provided that said improvement project and said nearest port of call shall both lie within one of the following coastal areas of the United States, to wit: The Pacific coast from the Canadian border to the Mexican border; the Guif coast from the Mexican border to and including Key West; the Atlantic coast from Key West (exclusive) to Cape Hatteras; the Atlantic coast from Cape Hatteras to the Canadian border.

SEC. 2. Any common carrier by water who violates the provisions of this Act shall be punished by a fine of not more than $5,000 nor less than $1,000 for each act of violation or for each day such violation continues.

SEC. 3. The provisions of the Shipping Act, 1916, as amended prior to this Act, shall in all respects, except as amended by this Act, continue to be applicable to common carriers by water.




Washington, D. C., April 29, 193). Subject: H. R. 7521, Merchant Marine Act, 1935. Hon. SCHVYLER OTIS BLAND, Chairman Committee on Merchant Marine and Fisheries,

House of Representatives, Washington, D. C. DEAR SIR: The immediate interest of the International Union of Operating Engineers in the proposed legislation as above entitled is twofold. It is inclusive of questions of the wages, hours, and conditions of the employment of labor as they obtain (1) in the operation and maintenance of ships engaged in foreign trade, (2) in the construction and repair of ships.

Insofar as the construction and repair of ships are concerned, the factors of wages, hours, and conditions of labor have been adjusted by the provisions of the Code of Fair Competition for the Ship-Building and Ship-Repairing Industry. Variance, however, existed in the schedules of hours and wages as between private shipyards and navy yards. The question of which schedule or schedules are the more advantageous to labor is at this time of no material import. Adjustments in these schedules are certain to be made and, if they are not brought into agreement, it is earnestly requested that labor be not made to suffer through the resultant inequities. In other words, it is the petition of this organization that labor receive the benefits of that schedule of wages which is the higher and that schedule of hours which is the more satisfactory. This request is in conformity with established practice. When, by way of example, rates of wages under the code are at variance with those fixed by the Public Works Administration, the higher rates obtain,

As compared with the ship-building and ship-repairing industry, there is no code of fair competition for the operation and maintenance of ships engaged in foreign trade and of the question of wages which shall be paid under the proposed legislation, the bill as at present drawn is silent. It contents itself with saying (sec. 204) that the Authority shall determine the relative costs, between ships operated under the laws of the United States and those operated under the laws of foreign countries, of maintenance, repairs, wages, and the like; and (sec. 505) that an operating subsidy shall be paid, based on a difference in cost per voyage, of wage, subsistence, and so on of vessels operated respectively under the laws of the United States and those of foreign countries.

This organization asks that the bill be so amended as to afford protection to labor. This may take the form of a minimum wage (in respect of this organization a minimum wage for engineers, firemen, oilers, and water tenders) similar to those provided for by the different codes of fair competition, or it may take the form of a guarantee that the prevailing rate will be paid by a device similar to that afforded in building construction by the Davis-Bacon Act of 1931. In support of either of these possibilities this organization urges that there be written into the bill a clear-cut recognition of the right of labor to bargain collectively.

The International Union of Operating Engineers makes earnest request that the provisions of section 512, part II, be carefully circumscribed. As written, paragraph (b) of that section makes it possible for officers of the Navy to volunteer for service on ships operated under the proposed legislation. Carrying this to the point of absurdity, but nonetheless leaving it as a possibility, this means that vessels could be operated by naval officers to the entire exclusion of those who follow the sea as a calling and who are skilled in the ways of the sea, but who have not had the benefit of training of the kind made possible by the Navy of the United States. We ask that this section be so amended as not to permit the exclusion from service of any qualified officer or seaman by reason of the proposed practice of training cadets or of permitting naval officers to volunteer for duty. In other words, we ask that cadets and naval officers be carried as extras to the ship's personnel.

Turning to the more general features of the bill (title VIII, sec, 802), there appears little reason at just this time for establishing schools for the training of citizens of the United States as seamen. If the situation is known accurately to this organization, there are now great numbers of competent seamen, including engineers, firemen, oilers, and water tenders, unemployed. It is our thought that an outlet should be provided for the services of those trained men now out of employment before others are made ready for duty and are thus brought into competition with those already available.

Under the same title, section 804 is written as an amendment to section 2 of the act of March 4, 1915. The purpose of this proposed section is identical in import if not in text with that written into H. R. 6041, on which hearings were held before your committee on date of April 24. At the time of those hearings we presented a brief in which we embodied certain suggested amendments. In order neither to prolong this present brief nor unduly to fill the record, the amendments then suggested are not here repeated, but it is urged that in connection with this proposed legislation you carefully read again our brief, which bears date of April 23.

In title I of the proposed bill it is stated as a part of the declaration of policy that the merchant marine should be composed of the best-equipped, safest, and most suitable types of vessels constructed in the United States, and manned with a trained and efficient citizen personnel. With that declaration this organization finds itself in complete accord. To us it seems that one of the criteria of a trained and efficient personnel lies in the employment of engineers, firemen, oilers, and water tenders who, by experience, by a sense of responsibility, and by a deeply rooted desire to give a service completely adequate in character, are arailable through the resources of organized labor. These are qualities deeply ingrained by the traditions of organized labor, and we respectfully urge the employment of men so qualified. We believe that in this bill, supported and strengthened by the suggestions which have above been briefly outlined, lies the opportunity to foster and develop a merchant marine of a high character and of great dignity, and to this end we ask your earnest consideration of the points stated in this brief.

Very truly yours, (SEAL]


General President. The CHAIRMAN. We will stand adjourned until 10 o'clock tomorrow morning.

(Whereupon, at 5:10 p. m., the committee adjourned until 10 a. m. Wednesday, May 1, 1935.)





Washington, D.C. The committee met at 10 a. m., Hon. Schuyler O. Bland (chairman) presiding.

The CHAIRMAN. A new committee print of the bill has been issued and it will be found in the appendix to these hearings.

I have promised Congressman Buck we would hear him first this morning. STATEMENT OF HON. FRANK H. BUCK, A REPRESENTATIVE IN

CONGRESS FROM THE STATE OF CALIFORNIA Mr. Buck. Mr. Chairman, the Legislature of the State of California recently adopted a joint resolution relating to Federal legislation granting subsidy or assistance to the American merchant marine and I desire to call that resolution to your attention and also the suggested wording of a paragraph to be added to or substituted for a paragraph in the proposed bill.

The reason for the adoption of this resolution and suggested change lies in the treatment of the port of Stockton, a newly created and newly organized port district—which lies in my Congressional District, I may say, incidentally-has received at the hands of the Pacific Coast European Conference and which it fears it may receive at the hands of other conferences in the future.

By action of Congress and through money obtained under a P. W. A. allotment, the channel of the San Joaquin River was deepened to 32 feet about a year and a half ago and ocean-going steamers to the number of something like 560 have since utilized the port. Most of those have been intercoastal steamers, but there have been some foreign steamers in there.

Now the Pacific Coast European Conference has refused to make any rates to Stockton. Stockton is not the only port they have discriminated against, but there are also San Diego, Sacramento, Vancouver, Wash., and some others. They have done this in spite of the fact that some of the members of the conference desired to serve the port of Stockton and one of those members is an American line.

Now it is suggested, in the event you propose to authorize the granting of subsidies to American lines, that something should be done to assure service to all the American ports on which the Government of the United States has expended money. The resolution which has been adopted reads as follows:

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