2 San Francisco also reported 54 cooks, 47 citizens, 7 aliens; and 15 hospital stewards, all citizens. 3 Reported as bus boys.

The three sets of figures tell quite an interesting story and are being offered to the members of the Senate Commerce Committee and the House Merchant Marine Committee for their careful consideration in connection with section 801 of S. 2582 and H. R. 7521.

At this point I would like to present an additional statement on the part of Mr. Campbell. I refer to part IV, May 7, 1935, hearings before the Senate Commerce Committee on S. 2582, page 528. During the course of a discussion between Senator Copeland and Mr. Campbell, spokesman for certain members of the shipping interests, I find the following wording:

"The CHAIRMAN. Disregarding for the moment the 5 years, Mr. Campbell, would you have any objection to this language: That three-fourths of the crew shall be citizens of the United States, native-born, or completely naturalized? "Mr. CAMPBELL. I do not know. I cannot answer that without consulting the shipping people themselves. I have not sufficient knowledge. It is just a question of whether men are available, that is all.

"The CHAIRMAN. I have noted your objections."

This shows the attitude certain factions in the shipping industry in the year 1935; it is exactly the same as their attitude was when the Merchant Marine Act, 1928, was under consideration. It is always a question of whether citizens of the United States are available to fill the jobs on the subsidized merchantmarine vessels. To me, that is not the correct answer, or the grounds for the contention of some of the members of the shipping industry. I maintain that they would much rather employ aliens than citizens of the United States, and one of the main reasons can be found in the following table, which was presented by the American Steamship Owners' Association, showing the monthly wages, on foreign and American cargo vessels, 5,000 gross tons and over. This table may be found in part 5, hearings before the Committee on Merchant Marine, United States House of Representatives, Seventy-fourth Congress, first session, part 5, March 26-27, 1935, page 430, and is included herein:

Now, if we refer to the above table, particularly as it refers to the stewards'
department, you will note where a chief steward on the United States vessel
receives $112 a month, whereas on a French vessel he receives $62 a month, and
a chef on an American vessel receives $93 a month, while on the French vessel
he receives $37 a month. Is it any wonder that there are so many available
aliens who wish to work on our United States subsidized ships, in preference
to foreign flag ships? There is no argument on that score. Further, how can
there be any argument as to why certain factions in our shipping industry
prefer the alien steward personnel to the citizens of the United States, when
we consider the difference in the pay on our ships and foreign flag ships, the
living standards on our ships, and every other factor in comparison with the
same factors on foreign flag ships. There is your answer as to why certain
members of the shipping industry contend that they are experiencing con-
siderable difficulty in securing competent, efficient, well-trained citizens of the
United States for these jobs in the stewards' department on our subsidized
ships. The question is one which is not debatable.

No doubt, some of the Members of Congress as well as some of the members
of the shipping industry will say that apparently McVay cannot say any-
thing good about our American shipping industry. Such is not the case; far
from it.

In 1928 and 1935 a great hue and cry was raised by certain members of
the shipping industry that it would be utterly impossible to employ more than
50 percent, or 66% percent citizens of the United States on the subsidized
vessels and the contention was made than any legislation which would bring
about requirements in excess of the 50 percent and the 66% percent would
hang an anchor around the neck of the shipping industry and would prove
very detrimental in the operation of our subsidized vessels. I studied these
comments very carefully and wondered whether or not they were based on
facts or fiction, and I came to the conclusion that these statements were not
based on facts, and I contend that section 405, paragraph (c), the Merchant
Marine Act, 1928, which reads, "Two-thirds of the crew as above defined shall
be citizens of the United States", is not proving to be detrimental to the wel-
fare of the shipping industry, and that legislation could be enacted to increase
that percentage to 80 percent citizens of the United States and still not sub-
merge or wreck thes merchant-marine program.

THIS HAS ALREADY BEEN CLEARLY DEMONSTRATED

I was not successful during the Seventy-second and Seventy-third Sessions
of Congress in having legislation enacted by the Members of Congress than
would accomplish this objective, so I personally took the matter up with
several members of the shipping industry, while the investigation was being

conducted by Senator Black, and I made a personal request of some of the members of the shipping industry, asking them if they would not cooperate on a program increasing the percentage of citizens of the United States on the subsidized ships, and I am very happy to be able to report that some of the companies holding mail contracts cooperated and are deserving of credit for their patriotic spirit, and I would like to include here a letter from Colonel Kenneth Gardener, representing the Export Steamship Corporation, incorporating some very interesting figures on the subject which show that this company reached a percentage of 86 percent citizens of the United States. Reading of the letter will prove interesting.

J. H. MCVAY, Esq.,

HAIGHT, SMITH, GRIFFIN & DEMING, 80 Broad Street, New York, April 26, 1935.

Lindbergh Apartments, Washington, D. C.

MY DEAR MCVAY: I find that I yesterday understated the percentage of American seamen on Export vessels.

The classification of personnel by nationality on vessels operated by the Export Steamship Corporation, from August 1, 1928, to June 30, 1934, shows that out of a total of 26,035 officers and crew signed on during that period 86 percent were American citizens.

All of the officers, of course, were American citizens, and, if we just take the crew alone, we get the following figures for the period above mentioned: 13,607 born in American; 5,349 naturalized citizens; 3-year-certificate men, 746; aliens, 2,416.

On a percentage basis for the crew alone, 62 percent were born in America, 24 percent were naturalized, 3 percent were 3-year-certificate men, and 11 percent were aliens.

This gives you, on a percentage basis, 86 percent born in America or fully naturalized, 3 percent certificate men, which will bring your total up to 89 percent, and 11 percent aliens, which makes the full 100 percent

I trust you will have in mind that these figures cover a period of 5 years and 11 months, which makes the showing all the more important.

You will recall that I misspoke myself yesterday and said that we had 84 percent, when I should have said 86 percent for members of the crew born in America or fully naturalized.

Trusting the foregoing information may be of service to you, I am

Faithfully yours,

KENNETH GARDENER.

I shall also incorporate a letter from Mr. A. J. McCarthy, general manager, International Mercantile Marine Co., and a table which Mr. McCarthy furnished me regarding five of their vessels, showing the fine record that this company has made in response to my personal request.

Mr. J. H. MCVAY,

INTERNATIONAL MERCANTILE MARINE Co.,
OFFICE OF THE GENERAL MANAGER,
1 Broadway, New York, April 19, 1935

Lindbergh Apartments, Washington, D. C. DEAR SIR: As requested by Mr. Nolan, our Washington representative, we are attaching hereto a statement showing the percentage of American citizens in the crew of our various capital ships and trust that this is the information you desire. If not, and there is any further information we can give you, if you will kindly let me know, I shall be very glad to comply with your request. The statement covers the last sailing of each vessel from this port.

Very truly yours,

A. J. MCCARTHY, General Manager.

There are some other companies who have been, and are doing just as well as these two companies, but unfortunately, I am not able to incorporate facts and figures pertaining to their patriotic cooperation. The figures which I have presented are positive proof that it is feasible to increase this percentage from two-thirds up to at least 80 percent and still not prove detrimental, because the figures presented here show what "has" been done without compulsion by Federal law. These companies have not complained that by doing this they have suffered any undue hardships, rather, they have found it to be a matter of good business as well as a mighty fine patriotic movement.

Later on, I intend to present a draft of a suggestion for amending paragraph (c), section 405, of the Merchant Marine Act, 1928, to take the place of the present language in title VIII, section 801, of S. 2582.

I have referred to the subsidized ships of the American merchant marine and feel that it would be proper at this time to include a table which will furnish some data on this particular phase of the discussion. So I shall incorporate at this point the following table and then will discuss the personnel phase of the table: Ships subsidized during fiscal year 1933–34

NOTE.-Under sec. 801 as originally drafted, the following would apply: Total crew, deck and engine,

14 012 would be citizens of the United States: totel erow stoword pursor 9 050 could be 100.

at aliona

You will note, there are 282 vessels, divided into three classifications: Combination (passenger) 99 vessels, 100 to 1,000 pasengers; intermediate (passenger) 44 vessels, 1 to 100 passengers and cargo; cargo (freight) 139 vessels, no passengers, cargo only.

The total number of employees on the 282 vessels is 22,965. Figures are broken down to show total number in: deck, engine, stewards-pursers departments, and can be used to show the possibilities and probabilities of employment on the subsidized ships under title VIII, section 801, of the original draft of S. 2582, the present revised draft, as well as under the proposed language which I herewith offer for section 801, S. 2582 (McVay's):

SEC. 801. (a) From and after the enactment of this Act, all licensed officers of vessels documented under the laws of the United States, as now required by law, shall be citizens of the United States, native born or completely naturalized; from and after the enactment of this Act upon each departure from the United States of a cargo vessel in respect of which a construction, operating, or trade-promotion subsidy has been granted under this Act, or any other Act, all of the crew (crew including all employees of the ship) shall be citizens of the United States, native born or completely naturalized.

(b) From and after the enactment of this Act, and for a period of one year, upon each departure from the United States, of a passenger vessel in respect of which a construction, operating, or trade promotion subsidy has been granted under this Act, or any other Act, all licensed officers shall be citizens of the United States, as defined above, and no less than 80 percent of the crew (crew including all employees of the ship other than officers) shall be citizens of the United States, native born or completely naturalized, and, thereafter, the percentage of citizens, as above defined, shall be increased 5 percentum per annum until the entire crew, including all licensed officers of any such vessel, shall be citizens of the United States, native born or completely naturalized.

(c) Any member of the crew, not required by this section to be a citizen of the United States, may be an alien, only if he is in possession of a valid declaration of intention or a certificate of registry issued under the Act entitled, "An Act to supplement the naturalization laws, and for other purposes", approved March 2, 1929. Such alien, as above defined, may be employed only in the stewards' department on passenger vessels.

(d) If any such vessel (as above defined), while on a foreign voyage, is for any reason deprived of the services of any seaman below the grade of master, his place, or a vacancy caused by the promotion of another to his place, nay be supplied by a person other than defined in paragraphs (a), (b), and (c), until the first return of such vessel to a port in the United States.

(e) The owner, agent, or officer of any such vessel who employs any seaman in violation of the provisions of this act, shall upon conviction thereof, be fined $500 for each seaman so employed.

(f) As used in this Act, the term "seaman" shall mean any person (including the master and officers) employed on board any vessel (as above defined) in the care, preservation, or navigation of such vessel.

(g) This section (801) shall be enforced by the Director of the Bureau of Navigation and Steamboat Inspection, under rules and regulations prescribed by the Secretary of Commerce, for the purpose of carrying out the provisions of this section, and shall take effect ninety days after its enactment, and will then repeal paragraph (c) section 405, Merchant Marine Act, 1928.

In order to picture the present situation and possibility for a future situation, I will offer this form as pictures no. 1, no. 2, no. 3, no. 4.

Picture no. 1 shows the percentages of citizens and aliens employed on these 282 subsidized ships, under the laws as of the present:

PICTURE NO. 1

Present law (sec. 405, par. (c), Merchant Marine Act, 1928): Twothirds of crew are supposed to be citizens of the United States, but they are not.

282 ships:

Total crew (or 100 percent) –

22, 965

Two-thirds of crew (or 66% percent), citizens of the United States. 15, 310 One-third of crew (or 33% percent) aliens.

7,655,