tween the two men is that Mr. Moran was a little more astute in the selection of his political affiliation. [Laughter.]

Jim Day is a good personal friend of mine, and has been for a number of years, notwithstanding the fact that he is a member of the Republican Party. He has a long record of public service, particularly in the American Legion, but also in other aspects of civic life. He is well liked, recognized for his leadership qualities and for his abilities, for his vigor and his intelligence, and for his mature judgment. It is a pleasure for me to endorse him, and my only regret at this point is that I began my presentation before my senior colleague arrived. I would have liked to have had her present Mr. Day first. Thank you very much, Mr. Chairman.

The CHAIRMAN. Thank you, Senator Muskie, and we will put your statement in the record in full.

(The matter referred to follows:)

STATEMENT BY SENATOR EDMUND S. MUSKIE AT THE HEARING ON JAMES V. DAY'S NOMINATION TO THE FEDERAL MARITIME COMMISSION, BEFORE THE SENATE COMMITTEE ON COMMERCE, FEBRUARY 8, 1962

I have been gratified by President Kennedy's recognition of Maine's maritime interests in nominating Mr. Day to the Maritime Commission. Maine's last representative on the U.S. Maritime Commission was the Honorable E. Carl Moran, Jr., a Member of the House of Representatives in the 73d and 74th Congresses, who was appointed to the Commission by President Roosevelt on April 17, 1937, and served until August 1, 1940.

Mr. Day has an eminent predecessor in Mr. Moran, but I know he will make every effort to match Mr. Moran's splendid record of achievement. The only deficiency I should note is that Mr. Day's political choices have not been as wise as Mr. Moran's. With that reservation, I will say that Jim Day will bring to this new assignment the same vigor, intelligence, and mature judgment he has displayed in all his endeavors.

Jim Day is a native of Brewer, Maine, where he was born on November 27, 1915. He received his elementary and secondary education in Brewer, and is a graduate of Washington State Teachers College, Machias, Maine.

During World War II, Mr. Day served in the Army, enlisting as a private in September 1941, and reaching the rank of first lieutenant prior to his discharge.

Jim Day's leadership qualities have been recognized before, during, and since his service. Prior to joining the Army he supervised 212 sales division employees for the H. J. Heinz Co. During his service period he served as a teacher in the Adjutant General's Staff College at Fort Oglethorpe, Ga. Since the war he has been a prominent and respected leader in the American Legion.

In 1951, Mr. Day was elected as Maine's youngest State commander. He later served as national executive committeeman from Maine.

Jim Day is a national vice commander of the American Legion. Prior to his election to that post he was appointed to a 4-year term on the executive section of the National Merchant Marine Commission of the American Legion. Most recently he served as director of the Legion's national public relations division.

In 1961, the American Legion Press Association gave Mr. Day its highest award, the President's Merit Award. The preceding year this award was given to FBI Director J. Edgar Hoover.

Mr. Day is married to the former Delma Irene McCormack. They have six children. Mr. and Mrs. Day and their family presently reside in Washington, D.C.

I have received a number of letters from Maine citizens of both parties attesting to Mr. Day's fine reputation, including endorsements from the maritime industry in Maine.

Senator BARTLETT. Mr. Chairman, in that connection, may I put one question to Senator Muskie?

The CHAIRMAN. Yes.

Senator BARTLETT. I would like to know if what he has told us here orally conforms in general to that which he has submitted in his written statement?

Senator MUSKIE. I think that perhaps what I said in the written statement was written after more mature thought and consideration. I can't recall any marked discrepancies.

Senator BARTLETT. You approve of the nominee in the written statement, too?

Senator MUSKIE. Wholeheartedly.

Senator BARTLETT. Thank you.

The CHAIRMAN. The committee is glad to have the senior Senator from Maine here, Mrs. Margaret Chase Smith, and she has a statement on behalf of Mr. Day. We would be glad to hear from her.

STATEMENT OF HON. MARGARET CHASE SMITH, U.S. SENATOR FROM THE STATE OF MAINE

Senator SMITH. Thank you very much, Mr. Chairman and members of the committee. I am happy to endorse the President's nomination of James V. Day to be a member of the Federal Maritime Commission. He is one of the leading citizens of Maine, a veteran with a distinguished war record and a successful businessman from one of our foremost maritime States, if not the foremost maritime State. He is very highly endorsed by the members of the maritime industry in the State of Maine.

Such are my objective observations of him.

As for my personal and subjective observations, he has been a very good friend of mine for several years. He has been a leading Republican in Maine, having once been a strong candidate for Congress from the First Congressional District of Maine. The wide friendship that he enjoys from many in both of the political parties is evident in the fact that the President has chosen him, upon the recommendation of Senator Muskie and Mr. Lawrence O'Brien, for this appointment.

I am confident that he will achieve a record of distinction as a member of the Federal Maritime Commission.

The CHAIRMAN. Thank you, Mrs. Smith.

Does the Senator from Alaska have any questions he would like to ask the distinguished Senator?

Senator BARTLETT. No, I won't even comment upon Senator Smith's statement referring to the primacy of Maine as a maritime area.

Senator COTTON. I think, Mr. Chairman, I am compelled to, because of the fact that, while I personally am able to agree to that, I am not only representing myself here, Senator Butler has given me his proxy. Were he here, he would insist on saying that Baltimore, Md., is the leading maritime State. I don't agree with that. [Laughter.]

Senator SMITH. Thank you. I am sure the distinguished Senator from New Hampshire knows about maritime matters having such a long coastline in New Hampshire. [Laughter.]

The CHAIRMAN. Well, if I wasn't the chairman here today, I would have a few remarks to make about Puget Sound, which has the longest coastline in the United States. [Laughter.]

But Maine is a maritime State. And it has been vitally interested in maritime matters, maritime and fishing. As a matter of fact, a great number of people always ask me why I have so much in common with the Congress people from Maine. I often state that Maine and Washington have about the same problems and the same coastline, the same concern about merchant marine and fishery matters as the State of Washington.

All right, we thank you both.

Is there anyone else here?

Senator Holland was to come, but I think he is on his way, and Senator Boggs for Mr. Behrman. But they will be here later. Off the record.

(Discussion off the record.)

The CHAIRMAN. The nominees for the Federal Maritime Commission, for the record, are:

Thomas E. Stakem, of Virginia, chairman, for a term expiring June 30, 1964.

,

John Harllee, rear admiral, U.S. Navy, retired, of the District of Columbia, for a term expiring June 30, 1965. Mr. Harllee has no Senators to sponsor him, so I will take that job on myself for the District of Columbia.

John S. Patterson, of Maryland, for a term expiring June 30, 1962. Ashton C. Barrett, of Mississippi, for a term expiring June 30,

1963.

James V. Day, of Maine, for a term expiring June 30, 1965.

Mr. Stakem has listed his political affiliation as being Democratic. Mr. Patterson's political affiliation is listed as Republican. Mr. Barrett's political affiliation is listed as Democrat. And Mr. Day, as you have just heard, is a Republican.

Mr. Harllee has no affiliation-oh, he does say he is a Democrat. [Laughter.]

Mr. HARLLEE. Yes, sir, I am.

The CHAIRMAN. All right.

Now, you gentlemen were all appointed at various times. Mr. Day, I believe, being the last one.

NOMINATION OF THOMAS E. STAKEM, JR., OF VIRGINIA, TO BE CHAIRMAN OF THE FEDERAL MARITIME COMMISSION (REAPPOINTMENT)

The CHAIRMAN. The committee, of course, is quite familiar with our old friend Mr. Stakem, who has been in maritime matters for many, many years. And I presume-I don't know whether there will be any question that we would like to ask of Mr. Stakem.

Senator BARTLETT. I have a few.

The CHAIRMAN. Senator Bartlett says he has a few. But I would think that the questions we would ask here, would be directed to Mr. Stakem, the Chairman. You might ask one of your colleagues to answer a particular question that is specifically within his field, however.

Now, the chairman could ask a great number of general questions on maritime matters, but I appreciate and I am sure the committee does, that this Commission is the result of reorganizing the mari

time functions of the Department of Commerce and the old Maritime Board, and you are just in effect getting started, so that we probably will postpone the general questions on general maritime matters until you can come up again on specific legislation or matters of general concern to the committee.

Mr. STAKEM. Thank you, Mr. Chairman.

The CHAIRMAN. The Chair wishes to interrupt here.

He just came in very quietly, but on behalf of the committee I want to welcome our newest member, the distinguished Senator from New York, Senator Keating.

Senator KEATING. Thank you, Mr. Chairman.

The CHAIRMAN. He has been placed on our Merchant Marine Subcommittee, so that members of the Maritime Board will be having a great deal of contact with Mr. Keating, our newest member. The committee welcomes you.

Senator KEATING. Thank you very much.

The CHAIRMAN. Go ahead, Tom.

STATEMENT OF HON. THOMAS E. STAKEM, CHAIRMAN, FEDERAL MARITIME COMMISSION

Mr. STAKEM. Mr. Chairman, I was about to say that this is the first time that all five of the Commissioners have sat down together. As you know, four of us are on duty, but Mr. Day is not. He has been waiting for confirmation.

The CHAIRMAN. Yes.

I have one question. I am sure that the chairman can answer this. We passed Public Law 346 just at the end of the session, the dualrate law.

Mr. STAKEM. Yes, sir.

The CHAIRMAN. I know that we haven't had much experience with it yet, but could you tell us generally whether you think it has been working out or what your experience has been to date on this dual-rate proposition.

Mr. STAKEM. Yes, Senator. As you know, we have approximately 124 conferences and half of that number, I think to be exact 61, do employ the so-called dual-rate system of ratemaking. Under the law, these 61 conferences have until April 3, 1962, in order to modify their dual-rate contracts to conform with the new law. Thereafter, the Commission has, I think, a year in which to approve

The CHAIRMAN. Take a look at them.

Mr. STAKEM. Take a look at them. We are now and have just about completed the rules which we will promulgate which will assist the industry in coming through and complying with the law. We do not anticipate any problems.

The CHAIRMAN. Is it the same situation with the freight forwarder thing? I am speaking for the record of ocean freight forwarders. Mr. STAKEM. Yes. What we did on that, Mr. Chairman, was to invite the freight forwarding representatives to come down and meet with our staff in order to work out the first rules of licensing under the new bill. And then we drafted the rule and that was published in the Federal Register. About 1,000 of the freight forwarders have

responded in order to protect their grandfather rights which they had to do. So that is working along very nicely.

The CHAIRMAN. How many would be left?

Mr. STAKEM. There were, I think, 1,131 altogether and about a thousand of that 1,700 have come in to protect grandfather rights. The CHAIRMAN. Now, I have heard that, and I expected this to happen when we pass the dual-rate bill. But foreign shipping lines apparently don't like the provision on which we require them to file tariffs with the Commission. What is your experience with them? Mr. STAKEM. Yes, we had on file at the Commission approximately 450 tariffs, mostly in the outbound, the export trade of the United States. Under the new law, both the outbound and the inbound rate tariffs must be filed with the Commission. Since the bill was passed, we have had filings, and I think the cutoff date was January 2, 1962. We have had 450 new filings, mostly of inbound freight rates. And in addition to that, we have had in a 1-month period about 10,000 modifications of existing rates. And what we did on that too, Mr. Chairman, was to bring in the industry, both the carriers and the shippers and sit down with them before we went out with tentative rules, and then we extended the time for the commenting on these rules to February 23, 1962, and even though there are still some, shall I say, beefs about the details, requirements of the Commission, these protestations will be examined by the full Commission before the rules become final. But I think I can say this, that the compliance that we have had to the new law, as witnessed by the 10,000 modifications plus the 450 new tariffs, that there has been a high degree of compliance with the new law.

The CHAIRMAN. Do they file on all the countries they service or do they file separately on each country?

Mr. STAKEM. Usually the tariff will contain general trading areas, and will name all countries.

The CHAIRMAN. Areas rather than countries?

Mr. STAKEM. That is right, sir.

The CHAIRMAN. Do you think that this has been any undue burden upon these people?

Mr. STAKEM. No. I don't think so, Mr. Chairman. It seems to me that the exporter and the importer of the United States is entitled to know what the rules are and is entitled to know what the rates are he is going to be charged.

The CHAIRMAN. I want to suggest, too, that this committee has been, the Merchant Marine Subcommitte has been, quite concerned, as I have, about the whole problem of foreign ocean rates. Well, let's say practices. And if some of the evidence that we know about, at least has been told us, is correct, we may have to take a look into foreign rate practices, or shipping practices which sometimes are quite detrimental to the concept of the conference and things of that kind. But we will talk about that later.

Mr. STAKEM. Mr. Chairman, I do want to say this, I am not belittling the fact that we have problems. We do have. We are over our head in them. But, as these problems crystallize, why, we will be the first to come to the legislative committee to ask your suggestion and guidance on it.