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AMENDING SECTION 27 OF THE MERCHANT MARINE ACT, 1920, SO AS TO PERMIT THE TRANSPORTATION OF COAL TO OGDENSBURG, N. Y., IN FOREIGN VESSELS

APRIL 27, 1949.-Committed to the Committee of the Whole House on the State

of the Union and ordered to be printed

Mr. HART, from the Committee on Merchant Marine and Fisheries,

submitted the following

REPORT

To accompany H, R. 75)

The Committee on Merchant Marine and Fisheries, to whom was referred the bill (H. R. 75) to amend section 27 of the Merchant Marine Act, 1920, so as to permit the transportation of coal to Ogdensburg, N. Y., in foreign vessels, having considered the same, report favorably thereon with an amendment and recommend that the bill do pass.

The amendment is as follows:

Page 1, line 5, delete the word “Canadian” and insert in lieu thereof the word "foreign".

PURPOSE OF THE LEGISLATION

The purpose of this bill is to permit vessels of foreign registry to transport coal to Ogdensburg, N. Y., from other points in the United States on the Great Lakes, or their connecting or tributary waters, until December 31, 1950, notwithstanding the provisions of section 27 of the Merchant Marine Act. 1920, as amended (U. S. C., 1946 edition, title 46, sec. 883)

During the hearing conducted by your committee on this bill, testimony was presented which showed conclusively that there are not sufficient American vessels of the type required to handle the requirements for unloading coal. The dock cannot be serviced by any vessel that does not have self-unloaders. since they do not have derrick facilities to handle straight boat cargo vessels. In particular there is a shortage of self-unloading vessels on the river at this time and with this shortage they are unable to obtain cargo space for their shipments unless they use vessels of foreign registry.

Throughout the war a shortage of qualified American vessels made it necessary to employ Canadian vessels to transport coal from points in the United States on the Great Lakes to Ogdensburg. This transportation was permitted under the authority vested in the Secretary of the Treasury by section 501, Second War Powers Act of 1942, as amended. Since the expiration of that authority, several shipments of coal have been transported to Ogdensburg by Canadian vessels from other United States points on the Great Lakes and, in each instance, the penalty of forfeiture of the merchandise incurred under section 27 of the Merchant Marine Act, 1920, has been remitted. The Customs people recognize that they have to get enough coal for that section of the State and they requested that legislation be enacted.

Bilateral treaties of friendship, commerce, and navigation except our coasting trade from the requirement of national treatment and provide that it is to be regulated in accordance with local law. Such treaties, however, contain provisions to the effect that nationals of either country shall within the territories of the other enjoy mostfavored-nation treatment with respect to the coasting trade. Therefore, the word “Canadian” appearing in the body of the bill was deleted and replaced by the word “foreign.'

This bill does not involve any additional expenditure of funds and your committee has received favorable reports from the Department of State and the Treasury Department. The reports are as follows:

DEPARTMENT OF STATE,

Washington, April 6, 1949. The Honorable SCHUYLER OTIS BLAND, Chairman, Committee on Merchant Marine and Fisheries.

House of Representatives. MY DEAR MR. BLAND: Further reference is made to the committee's letter of February 4, 1949, requesting an expression of the Department's views with respect to H. R. 75, a bill to amend section 27 of the Merchant Marine Act, 1920, so as to permit the transportation of coal to Ogdensburg, N. Y., in foreign vessels.

Bilateral treaties of friendship, commerce, and navigation except our coasting trade from the requirement of national treatment and provide that it is to be regulated in accordance with local law. Such treaties, however, contain provisions to the erect that nationals of either country shall within the territories of the other enjo most-favored-nation treatment with respect to the coasting trade. It is suggested, therefore, that the word “Canadian" appearing in the body of the bill be deleted and be replaced by the word ''foreign”. Subject to the foregoing suggestion, no objection is seen from the viewpoint of this Department to the proposed legislation.

The Department has been informed by the Bureau of the Budget that there is no objection to the submission of this report. Sincerely yours.

ERNEST A. GROSS,

Assistant Secretary (For the Secretary of State).

TREASURY DEPARTMENT,

Washington, D. C., April 7, 1949. Hon. SCHUILER Otis BLAND, Chairman, Committee on Merchant Marine and Fisheries.

Old House Office Building, Washington 25, D. C. MY DEAR CHAIRMAN: Further reference is made to your letter of March 7, 1949, requesting the views of this Department on H. R. 75, Eighty-first Congress, first session, a bill to amend section 27 of the Merchant Marine Act, 1920, so as to permit the transportation of coal to Ogdensburg, N. Y., in foreign vessels.

The bill, if enacted, will permit vessels of Canadian registry to transport coal to Ogdensburg, N. Y., from other points in the United States on the Great Lakes or their connecting or tributary waters, notwithstanding the provisions of section 27 of the Merchant Marine Act, 1920, as amended (U. S. C., 1946 ed., title 46, sec. 883). The permission granted is expressly limited to December 31, 1950.

Throughout the war a shortage of qualified American vessels made it necessary to employ Canadian vessels to transport coal from points in the United States on the Great Lakes to Ogdensburg. This transportation was permitted under the authority vested in the Secretary of the Treasury by section 501, Second War Powers Act of 1942, as amended. Since the expiration of that authority, several shipments of coal have been transported to Ogdensburg by Canadian vessels from other United States points on the Great Lakes and, in each case, the penalty of forfeiture of the merchandise incurred under section 27 of the Merchant Marine Act, 1920, has been remitted It is represented that the necessity for the use of Canadian vessels in this transportation is due largely to the condition of the Ogdensburg harbor which prevents its use by the American vessels which would otherwise be available and that some relief is necessary to insure a steady supply of coal for the Ogdensburg area, pending any needed improvement of the harbor of that port.

Under the circumstances, the Department will have no objection to the enactment of H. R. 75, if it is found that there is a real necessity for the use of Canadian vessels in this transportation for the next 2 years. The enactment of this bill will not increase the Department's expenditures.

In view of your request for the immediate delivery of this report to your committee, it has not been possible to secure the views of the Bureau of the Budget on this bill. Very truly yours,

John S. GRAHAM, Acting Secretary of the Treasury. O

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APRIL 27, 1949.-Committed to the Committee of the Whole House and ordered

to be printed

Mr. BYRNE of New York, from the Committee on the Judiciary,

submitted the following

REPORT

(To accompany 8. 227)

The Committee on the Judiciary, to whom was referred the bill (S. 227) for the relief of Stone & Cooper Coal Co., Inc., having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

An identical bill was favorably reported by the committee and passed the House in the Eightieth Congress, but no action taken by the Senate.

The facts will be found fully set forth in Senate Report No. 164, Eightieth Congress, which is appended hereto and made a part of this report. Your committee concur in the recommendation of the Senate,

(8. Rept. No. 164, 81st Cong., 1st sess.)

The purpose of the proposed legislation is to pay the sum of $2,289.59 to Stone & Cooper Coal Co., Inc. of Augusta, Maine, iu full settlement of all claims against the United States for reimbursement of transportation cost in excess of normal rates of transportation prevailing prior to January 1, 1942, on coal received on and after May 18, 1942, to June 1, 1944, in and around New York Harbor area and in New England, which period was not included in the regulations of the Office of Price Administration on bituminous coal from district No. 3 in northern West Virginia.

STATEMENT This bill is for compensatory adjustment filed by Stone & Cooper Coal Co., Inc., pursuant to Revised Compensatory Adjustment Regulation No. 1, which was disallowed by the Office of Price Administration for late filing. The compensatory

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