MERCHANT MARINE ACT, 1935 HEARINGS BEFORE THE COMMITTEE ON COMMERCE SEVENTY-FOURTH CONGRESS FIRST SESSION ON S. 2582 A BILL TO DEVELOP A STRONG AMERICAN MERCHANT COMMITTEE ON COMMERCE ROYAL S. COPELAND, New York, Chairman DUNCAN U. FLETCHER, Florida JOSIAH WILLIAM BAILEY, North Carolina JOHN H. OVERTON, Louisiana NATHAN L. BACHMAN, Tennessee VIC DONAHEY, Ohio JOSEPH F. GUFFEY, Pennsylvania CHARLES L. MCNARY, Oregon ERNEST W. GIBSON, Vermont GRACE MCELDOWNEY, Clerk CONTENTS Peacock, J. C., director, Shipping Board Bureau, Department of Ryons, Lt. Col. Fred B., Military Order of the World War.. 74 45 65 MERCHANT MARINE ACT, 1935 WEDNESDAY, APRIL 24, 1935 UNITED STATES SENATE, The committee met at 10:30 a. m., pursuant to call, in the Caucus Room, Senate Office Building, Washington, D. C., Senator Royal S. Copeland (chairman) presiding. Present: Senators Copeland (chairman), Fletcher, Bachman, Donahey, McNary, Johnson, White, and Gibson. The CHAIRMAN. The committee will come to order. It will be recalled that there was a time when America had a degree of supremacy on the seas, in the time of the old clipper ships, but for one reason or another American shipping declined, so that at the beginning of the World War we found ourselves almost without shipping, in tonnage sufficient to carry the troops abroad. Just previous to the war there had been an effort made, by amendment of the merchant marine laws, to promote shipping. After the war, the Jones-White Act, and various amendments to it, were passed, and we thought we were on the way toward a more efficient American Merchant Marine. It develops, however, that there has not been quite that activity in replacements and the upbuilding of our shipping that we consider desirable. The chief features of the more recent legislation in the Congress relate to the upbuilding of the merchant marine by means of construction loans and ocean-mail contracts. The ocean-mail contracts provision fell into disfavor for one reason or another. It will be recalled that as an amendment to the Independent Offices Act last year a provision was inserted giving the President power to modify or cancel existing contracts. He had until the 30th of this month to take action. By a joint resolution recently passed the date for modification or cancelation has been advanced to the 31st of October. A short time ago the President sent forward a message recommending a frank subsidy, both a differential subsidy so far as operation is concerned, and a subsidy to cover the difference in cost of construction of American vessels in American shipyards as against the construction of similar vessels abroad. At this point there will be inserted in the record a copy of the President's message. (The message of the President of the United States is as follows:) [H. Doc. No. 118, 74th Cong., 1st sess.] To the Congress of the United States: I present to the Congress the question of whether or not the United States should have an adequate merchant marine. To me there are three reasons for answering this question in the affirmative. The first is that in time of peace, subsidies granted by other nations, shipping combines, and other restrictive or rebating methods may well be used to the 1 |