REDETERMINATION OF VESSEL SALES PRICES OF SPECIAL SUBCOMMITTEE TO REVIEW OF THE COMMITTEE ON MERCHANT MARINE AND FISHERIES EIGHTY-SECOND CONGRESS SECOND SESSION JUNE 9, 10, 11, 12, 17, AND 18, 1952 Printed for the use of the 52.111493 SPECIAL SUBCOMMITTEE TO REVIEW REDETERMINATION OF VESSEL SALES PRICES OF S. S. "INDEPENDENCE" AND S. S. "CONSTITUTION" CONTENTS Callagahan, Vice Adm. W. M., commander, Military Sea Trans- Cochrane, Vice Adm. E. L., United States Navy (retired), Chair- Gatov, Albert W., member, Federal Maritime Board.. Greene, Francis, general counsel, Federal Maritime Board - Low, Vice Adm. F. S., Deputy Chief of Naval Operations-- Nash, Frank C., Assistant to the Secretary of Defense for International 12 Slater, John E., president, American Export Lines, Inc--- Warren, Hon. Lindsay W., Comptroller General of the United States; accompanied by Frank L. Yates, Assistant Comptroller of the United States; Frank R. Weitzel, Assistant to the Comptroller of the United States, and Ralph E. Casey, associate general counsel for the General Accounting Office---- Wheelock, C. D., Inspector General, Bureau of Ships- 169 Williams, Robert W., Vice Chairman, Federal Maritime Board ---- 205, 211 Benefits resulting from the General Accounting Office audit of the Federal Maritime Board and the Maritime Administration, Depart- ment of Commerce, and the predecessor agency, the United States Maritime Commission, for fiscal years 1948 through 1951 -- Extract from the minutes of a meeting of the United States Maritime Fleet of owned vessels, American Export Lines, Inc., table - - - - House Report No. 1423, Eighty-first Congress., first sess., reference to Letters from- Cochrane, Vice Adm. E. L., to American Export Lines, Inc., Cochrane, Vice Adm. E. L., Chairman, Federal Maritime Board, 63 81 100 68 394, 396 Chadbourne, Parke, Whiteside, Wolff, & Brophy, to Hon. Farr, Edward J., secretary-treasurer, Brotherhood of Marine statement_ 396 269 Gillespie, H. M., to Admiral W. W. Smith, Aug. 11, 1952 (Federal 63 Haddock, Hoyt S., executive secretary, CIO Maritime Com- 268 Hart, Hon. Edward J., to Hon. John F. Shelley, May 6, 1952--- 1,349 Hipkins, W. C., to Federal Maritime Board, Nov. 16, 1951 (Fed- 139 Sawyer, Hon. Charles, Secretary of Commerce, to chairman, June 389 Additional information—Continued Letters from-Continued Shelley, Hon. John F., to Hon. Lindsay C. Warren, Comptroller Shelley, Hon. John F., to Hon. Robert A. Lovett, June 3, 1952- Truman, Hon. Harry, to Maj. Gen. Philip B. Fleming, Mar. 30, 1950. (Federal Maritime Board exhibit No. 8) Truman, Hon. Harry S., to Hon. J. Howard McGrath, Nov. 21, Warren, Hon. Lindsay C., to the President of the Senate, July 11, 1949, reference to (Federal Maritime Board exhibit No. 5)-- Warren, Hon. Lindsay C., to Secretary of Commerce, May 27, Warren, Hon. Lindsay C., Comptroller General, to Chairman, Williams, A. J., to American Export Lines, Inc., Nov. 22, 1948 Williams, A. J., to American Export Lines, Inc., June 6, 1951 Memorandum for the United States Maritime Commission and for the board of directors of American Export Lines, Inc. (Federal Maritime Board exhibit No. 1)---- Passenger routes and cargo ports of call-American Export Lines, Page 391 67 392 64 91 396 134 Facing 245 Preliminary recommendation as to principles and procedures for the determination of ship-construction subsidies, Sept. 7, 1951 (Federal Maritime Board exhibit No. 10). Report of the Federal Maritime Board, Feb. 25, 1952 (Federal Mari- REDETERMINATION OF VESSEL SALES PRICES OF S. S. "INDEPENDENCE" AND S. S. "CONSTITUTION" MONDAY, JUNE 9, 1952 HOUSE OF REPRESENTATIVES, SPECIAL SUBCOMMITTEE No. 3 TO REVIEW REDE- COMMITTEE ON MERCHANT MARINE AND FISHERIES, The special subcommittee met, pursuant to call, at 10:05 a. m., in room 219 Old House Office Building, Hon. John F. Shelley (chairman of the subcommittee) presiding. Present: Representative Shelley (presiding), Murphy, Ikard, Weichel, and Allen. Mr. SHELLEY. The special subcommittee will come to order. Let the record show the following letter, which I will read, which was addressed to the chairman of this subcommittee on the date of May 6, 1952, by Hon. Edward J. Hart, chairman of the House Committee on Merchant Marine and Fisheries: Hon. JOHN F. SHELLEY, House of Representatives. DEAR JACK: This will confirm our previous conversations when, I indicated my desire that we should make a prompt inquiry into the complex problems which have arisen in connection with the review and redetermination, by the Federal. Maritime Board, of the vessel sales prices of the Steamship Independence and Steamship Constitution to American Export Lines, Inc. To that end I have designated you as chairman of a special five-man subcommittee to undertake the inquiry and report thereon to the full committee at the earliest practicable date. The special subcommittee and its jurisdiction are as follows: SPECIAL SUBCOMMITTEE TO REVIEW REDETERMINATION OF VESSEL SALES PRICES OF STEAMSHIPS "INDEPENDENCE" AND "CONSTITUTION" MEMBERSHIP John F. Shelley, Chairman James J. Murphy Frank Ikard Alvin F. Weichel JURISDICTION The subcommittee shall hold such hearings and make such inquiry as it may deem necessary or desirable into the matter of the review and redetermination of the vessel sales prices of the Steamship Independence and Steamship Constitution to American Export Lines, Inc., pursuant to title 5 of the Merchant Marine Act, 1936, as amended, to determine the need for further administrative action or additional legislation in order to carry out the intent of the act in respect to said vessels. The special subcommittee shall also consider the need for additional legislation to clarify the intent and the methods of carrying out |