elsewhere in this act for the appointment of arbitrators and shall fix the compensation of such referees.

(1) The awards of the adjustment board shall be stated in writing. A copy of the awards shall be furnished to the representative parties to the controversey, and the awards shall be final and binding upon both parties to the dispute, except insofar as they shall contain a money award. In case a dispute arises involving an interpretation of the award, the board, upon request of either party, shall interpret the award in the light of the dispute.

(m) A majority vote of all members of the adjustment board shall be competent to make an award with respect to any dispute submitted to it.

(n) In case of an award by the adjustment board in favor of petitioner, the board shall make an order, directed to the owner, to make the award effective and, if the award includes a requirement for the payment of money, to pay to the employee the sum to which he is entitled under the award on or before a day named.

(0) If an owner does not comply with an order of the adjustment board within the time limit in such order, the petitioner, or any person for whose benefit such order was made, may file in the district court of the United States for the district in which he resides or in which is located the principal operating office of the owner, a petition setting forth briefly the causes for which he claims relief, and the order of the adjustment board in the premises. Such suit or maritime lien, as the case may be, in the district court of the United States shall proceed in all respects as other civil suits or maritime liens, except that on the trial of such suits the findings and order of the adjustment board shall be prima facie evidence of the facts stated therein, and except that the peitioner shall not be liable for costs in the district court nor for costs at any subsequent stage of the proceedings, unless they accrue upon his appeal, and such costs shall be paid out of the appropriation for the expenses of the courts of the United States. If the petitioner shall finally prevail, he shall be allowed a reasonable attorney's fee, to be taxed and collected as a part of the costs of the suit. The district courts are empowered under the rules of the court governing actions at law, to make such order and enter such judgment, by writ of mandamus or otherwise, as may be appropriate to enforce or set aside the order of the adjustment board.

(p) All actions at law based upon the provisions of this section shall be begun within 2 years from the time the cause of action accrues under the award of the adjustment board and not after.

(q) The adjustment board shall maintain headquarters in New York, meet regularly and continue in session so long as there is pending before the board any matter within its jurisdiction which has been submitted for its consideration and which has not been disposed of.

(r) Whenever practical the adjustment board shall be supplied with suitable quarters in any Federal building located at its place of meeting.

(s) The adjustment board may, subject to the approval of the Secretary of Labor, employ and fix the compensations of such assistants as it deems necessary in carrying on its proceedings. The compensation of such employees shall be paid by the Under Secretary of Commerce for Maritime Affairs.

(t) The adjustment board shall meet within 40 days after the approval of this act and adopt such rules as it deems necessary to control proceedings before the respective board and not in conflict with the provisions of this section. Immediately following the meeting of the entire board and the adoption of such rules, the board shall organize by the selection of a chairman, vice chairman, and a secretary. Thereafter the board shall annually designate one of its members to act as chairman and one of its members to act as vice chairman: Provided, however, That the chairmanship and vice chairmanship of the board shall alternate as between the groups, so that both the chairmanship and vice chairmanship shall be held alternately by a representative of the owners and a representative of the employees. In case of a vacancy, such vacancy shall be filled for the unexpired term by the selection of a successor from the same group.

(u) The adjustment board shall annually prepare and submit a report of its activities to the Secretary of Labor, and the substance of such report shall be included in the annual report of the Secretary of Labor to the Congress of the United States. The reports of the adjustment board and the annual report of the Secretary of Labor shall state in detail all cases heard, all actions taken, the names, salaries, and duties of all agencies, employees, and officers receiving

54085-36-17

compenstion from the United States under the authority of this act, and an account of all moneys appropriated by Congress pursuant to the authority conferred by this act and disbursed by such agencies, employees, and officers.

HOURS OF SERVICE FOR OFFICERS AND CREW

That it shall be unlawful for any shipowner, its officers or agents, subject to this act, to require or permit any vessel propelled by machinery to be operated without having in her service and on board a sufficient complement of officers and crew to provide that no officer or member of the crew shall be permitted or required to remain on duty more than 8 hours in any 24-hour period, except in case of emergencies, when life or property is in danger. Nothing in this section shall be so construed as to prevent local inspectors from increasing the number of licensed officers and crew on any vessel subject to the inspection laws of the United States, if in their judgment such vessel is not sufficiently manned for her safe navigation.

Mr. DULANEY. I desire to say, Mr. Chairman, that my organization takes no exception to a subsidy; in fact, they are favorable to a subsidy; but they are opposed to the present subsidy bills, in view of the fact that we believe that sufficient labor provisions are not in them, and nobody will question, I believe from our past experience, that we need very strict labor provisions in this bill.

The CHAIRMAN. Mr. Dulaney, your point is that you are unwilling to have the labor provisions go into another bill, but you want to be sure that they are in with the subsidy?

Mr. DULANEY. That is very true, Mr. Chairman.

Senator CLARK. Captain, I understand that you base that upon previous experience?

Mr. DULANEy. I do.

Senator CLARK. Are subsidies granted to ship lines with a view of taking care of labor, and in which labor may not have received the subsidy that is paid out of the Treasury of the United States; is that correct?

Mr. DULANEY. That is correct. The situation is this, Senator: The Jones-White Act hearings are just bulging out with testimony that those subsidies were to pay wage differentials, to raise and maintain the American standards aboard the ships, but the fact of the matter is that the wages were higher and working conditions. better prior to the granting of the subsidies.

Senator CLARK. Did you ever hear of a tariff act or a subsidy act that was not ostensibly based on benefits to labor?

Mr. DULANEY. I did not. From the time the subsidies were granted until the strike broke out on the west coast, wages had been cut and working conditions made so deplorable that the men walked off the ships.

Senator CLARK. Do you mean to say that under the Jones-White subsidy system, wages of American seaman-and by that I include mates and captains and pilots, as well, were actually cut?

Mr. DULANEY. The record shows it, Mr. Senator.

Senator CLARK. I would be very glad to have you expound on that subject.

Mr. DULANEY. I have already presented briefs here where the showing is made what the wages were prior to the subsidy and what they were after. And, regarding the Labor Department or the Maritime Authority having the jurisdiction of setting wages and working conditions, I favor the President of this country's method of collective bargaining, and I believe that if subsidies are to be granted

or loans or perquisites of any kind given, should be made mandatory with the people receiving those subsidies, loans, or grants to negotiate agreements covering wages and working conditions.

Senator CLARK. Do you have any reason to believe, Captain, that the discretion vested in this new Maritime Authority still to be created and still to be established and still to be formed, would be exercised with any greater regard for the ranks of labor than the discretion now vested in the existing governmental authorities, as it has been exercised under existing law?

Mr. DULANEY. Well, I don't care to take that risk. I would sooner go along with the President and set up collective bargaining and make it mandatory for the people receiving those subsidies to negotiate agreements.

Senator CLARK. Do you see any particular virtue in a Maritime Authority as against the agencies which have hitherto been set up under existing law?

Mr. DULANEY. Not to any great extent.

Senator CLARK. In other words, you do not feel from the standpoint of labor that is engaged in manning these ships, that you would be any safer with a new authority such as the Maritime Authority than you have been with the agencies under existing law?

Mr. DULANEY. No; I will say, as I stated before, that it should be mandatory for anybody receiving subsidies, loans, or perquisites of any kind to negotiate agreements covering wages and working conditions with the organizations national in scope covering that class of craft employees.

Senator CLARK. In other words, if the taxpayers of America are being taxed to pay for a differential in the labor cost, labor ought to get the differential?

Mr. DULANEY. Without any doubt.

The CHAIRMAN. Now, Captain, in the paper that you submitted, have you made definite recommendations as to how it should be done?

Mr. DULANEY. Yes.

The CHAIRMAN. Was that included in it?

Mr. DULANEY. Yes.

The CHAIRMAN. So that by reading the record we will know exactly what your viewpoint is?

Mr. DULANEY. Yes.

The CHAIRMAN. All right.

Mr. DULANEY. And I also want to say, Mr. Chairman, that our organization is on record for 100 percent Americans on our American merchant marine.

The CHAIRMAN. In all departments?

Mr. DULANEY. In all departments, because when you talk subsidy, Mr. Chairman, when you have not 100 percent Americans on those ships, you are creating a double subsidy for the people of this country. You are taxing them one time to pay the wages of an alien aboard an American ship, and you are taxing them again to keep an American citizen on the relief rolls.

The CHAIRMAN. I would like to say to you, Captain, that as far as I am concerned-and I have said it several times and I will repeat it now-I can see no excuse if we have a subsidy bill, I can see no excuse for the ship operator to hire foreign labor, to hire other than

American citizens and maintain the American standard. That is perfectly clear to me.

Senator CLARK. Captain, in your familiarity with shipping conditions, do you think it would be possible to employ American citizens to take the place of these Chinese that, for instance, operate on certain lines?

Mr. DULANEY. Without any doubt I do. There is not the slightest doubt in my mind.

Senator CLARK. You think they might make up a stateroom just as well as a Chinaman?

Mr. DULANEY. Yes.

The CHAIRMAN. Thank you, Captain.

Mr. Newton, you are a friend of mine, so you will forgive me for having kept you around here waiting for the last couple of days.

STATEMENT OF CLEVELAND A. NEWTON

Mr. NEWTON. My name is Cleveland A. Newton, and I am here to speak for the Mississippi Valley Association, which is a shippers' organization in the main of the States along the Mississippi and its tributaries.

First of all, we would like to see that provision in section 503 (b) providing for loans to inland waterways eliminated.

Senator CLARK. What bill is that, Mr. Newton?

Mr. NEWTON. That is on page 38.

The CHAIRMAN. Your view is the same as that offered by the Mississippi River Carriers' Association?

Mr. NEWTON. We want to endorse the amendment that was offered by the Mississippi River Carriers' Association.

The CHAIRMAN. Yes.

Mr. NEWTON. We do not find that loans are necessary to promote purchase of equipment for the operation of these inland rivers. In fact, we have gone on record at the last two conventions in favor of the Government disposing of the Federal Barge Line. We would like to see the whole matter under private operation.

Senator CLARK. Mr. Newton, on that point, while it is not really presently concerned here, I take it your point is that the reason for the establishment of the Inland Waterways Corporation originally was not to keep the Government permanently in the transportation business?

Mr. NEWTON. We never intended that.

Senator CLARK. But simply to demonstrate the practicability or feasibility of barge operations on the inland waterways, and that having been established, it is your theory and that of the Mississppi Valley Association that the Government ought to gracefully retire from the business and leave it to private capital which has come in.

Mr. NEWTON. That is exactly our position. Of course, the Federal Barge Line we think rendered a valuable service for a time in experimenting on different kinds of equipment and different kinds of fuel, and they paved the way for private enterprise, but we think that time is past.

Senator CLARK. And they have accomplished their purpose?

Mr. NEWTON. They have accomplished their purpose and ought to be disposed of.

Senator CLARK. I agree with you entirely.

Mr. NEWTON. On the question of Government aid to the merchant marine for ships competing with foreign flag ships, our association has repeatedly endorsed a program which will give aid equal to the handicaps which our ships under the American flag have to meet in competing with ships of foreign flags, and they have endorsed that position a number of times.

The association never took any particular interest in the merchant marine. First, we were interested in promoting the development of our interior rivers, but we finally discovered when we began to get our channels completed and get our commodities that we wanted to sell in foreign countries down to the Gulf, that we had not reached the market, and that we had to have ships with regular service out of the Gulf that would continue the low cost transportation after we had reached New Orleans.

Prior to the war, I think we did not have a single scheduled ship service; there wasn't any there. Tramp ships would stroll in occasionally, but we could not depend on that, and the result is that our industries when they went to the West coast and Central and South America, had to go by rail to New York or Baltimore, and we found we could not compete on the West coast or Central or South America by paying a thousand miles rail rate before we got in competition with the sea-coast cities.

I think that that is a fair statement of the interests of the association in developing the merchant marine, and we found those ships did not develop without Government aid, and when the war was over and we had those great quantities of ships, we had Shipping Board ships operated out of New Orleans and the east coast of South America, and we found that they developed markets for our midwestern products. It was an inducement to the industry to develop in that section, and as a result, when the period came for Government aid, when they turned it over and called it mail pay-which I think was a mistake-nevertheless we had one dependable line to South America, and I think we had one to somewhere in Europe that developed with that aid, and the result has been that we have been having fair service out of Gulf ports.

We are afraid if this Government aid is not given that we will go back to the old pre-war condition, foreign-flag ships will operate out of New York or Baltimore or somewhere on the east coast, and if we go to get into the markets of the west coast of Central or South America, we will have to go by that route. We feel that even now we have no dependable regular foreign-flag service out of the Gulf ports. We have a Japanese line going in one direction, and we have à German line going in another direction on circuitous routes. I think there is a Swedish company that is sailing, but I do not think they are on regular schedules, and we feel it would be very serious if anything happened to destroy that service; and apparently from all of the information that we can get, that service cannot go on with that foreign competition without Government aid. American-flag ships have handicaps in cost of construction and handicaps in the cost of labor which operate in favor of the foreign-flag ships, and many of these foreign-flag ships get government aid which gives them an advantage whereby if we are going to keep up our standards of living, we feel that our Government has got to meet that.