the rates can be brought to a point where a return can be paid on the investment, and the railroads not brought to further ruin; then private capital will find its way into coastal and protected trades shipJing, without any Government assistance whatever, except the assurance of Congress that their business will not be ruined by having to meet the competition of subsidized American ships, then a fine new fleet of coastal and intercoastal ships will be built, and built with private capital.

We have two distinct types of vessels in our American merchant marine. First, we have the ships that are used in the intercoastal and coast wise and protected trades, and these ships, not being in any way subjected to foreign competition, need no assistance whatever, but these ships must and can be regulated so that they will not further destroy the railroads and other forms of transportation. Second, the ships engaged in the foreign trade of the world, including the United States, and these ships can and should be encouraged to operate and prosper, but they should most certainly not be permatted to get into the protected trades and ruin all chance of this latter branch of our merchant marine development.

TITLE VIII-AMERICAN SEAMEN

Section 801 to read as follows;

Add vessels operated under any buliding or operation subsidy made under · pursuant to this act shall be manned exclusive) by citizens of the United Safes, dative born or completely naturai zed

We want this to be an American merchant marine, and consider ing our varied population at is ridiculous to say that competent beip in the steward's department cannot be found. Gentlemen, in a country that boasts the best hotels in the word, the best restaurants in the world, and the best-fed people in the world, and, where there are at the present time tens of thousands of waiters, and cooks, ard dining room help out of employment and on relief, it is pre. posterous to talk about not being able to secure steward's help that are Americans, Could it be that American vessels up to now have pad such poor wages that steward's help can find better employment ashore! If it is, the changes in this bill suggested by me will correct this. Pay them and you will get them, and we most assuredly don't want any but Americans on these ships which are being supported by American taxpayers.

Section 802 to be eliminated. This is not necessary. You have thousands of seamen and officers out of employment in this country, ertainly you have suthent to man all the American ships that could ever be used. New York State and Massachusetts and other States have merchant marine training ships, and then, too, the place to train men and officers for our merchant marine is on board those ship. Let the new generation start at the bottom and work their way up. Let's pay them the wages so that it will attract young men from the high schools, and even from colleges; let's make it attrac tive for young men to follow the sea. That's the best way to make life and property at sea safe. You can build any kind of ship that you want, but remember its only as safe as the men who are man

Section 803: To be eliminated.

Section 804-Section 2: This section should remain as it is, but in addition thereto, it should be understood that the working conditions outlined herein shall be the minimum that can be expected from any crew on any vessel, and this section in no way shall interfere with the collective bargaining feature between the Bureau and the crews' duly elected and recognized representatives as to their agreements as to pay and working conditions. It must be borne in mind that on some service the working conditions outlined herein could be complied with as far as legally required, but that the crews still would be working under conditions entirely unsatisfactory.

Section 805-Section 4551: This section has reference to the "continuous discharge book." I don't believe that there is much use of discussing this, except to say that it should be eliminated in its entirety, unless Congress is prepared to pass such a "continuous discharge book" system for all employers and employees in the United States, including, of course, all Federal officials and employees.

In place of the "continuous discharge book" system, it should be provided in this act that Congress shall reorganize the sea service bureau, with agencies in all ports of the United States, where seamen and officers seeking places on American ships can register, with their qualifications, and any American shipowner enjoying a building subsidy and/or an operating subsidy shall apply to these sea service bureau agencies for their officers and crews, excepting, of course, the master and the chief engineer.

That these American officers and seamen when registering, shall receive a slip, showing the date and hour and place of registering at such sea service bureau, and that any employee or official of such bureau, who shall prefer one man over another, for any consideration whatever, or no consideration, shall be guilty of a misdemeanor and shall be punished by imprisonment of from 1 year to 3 years at the discretion of the court.

The officers and men so registered at these sea service bureau agencies shall be members of a recognized union only, and the bureaus shall operate so that the officers and men registered, as to deck, engine, or steward's department, shall secure positions in rotation.

In the case of insubordination, disobedience, cowardice, insobriety. cr for other reasons, officers or men are found to be, in the opinion of the shipowner and/or master of vessels enjoying a subsidy from the United States Government, unfit to be officers or seamen on American ships, then such master or owner shall prefer charges with the sea service bureau, and the sea service bureau, shall, after ascertaining the facts in the case, depending on the nature of the offense, strike the name of the officers or men so found unfit to man American ships, from the rolls of the sea service bureau permanently or for as long a period as the agent of the bureau considers the offense justifies: Provided, however, That such accused officer and/or men, shall have the benefit of counsel and union representation at his or their hearing, and provided the decision of the sea service bureau agent is concurred in by the union to which such officers and/or men may belong.

It shall be the duty of such sea service bureau to investigate and inform themselves of the fitness of all applicants for registration for positions at sea.

With the President, I believe that American standards must be maintained on American subsidized ships, and it is necessary to make these seafaring jobs as attractive, both in pay and working conditions, as any opportunity offered ashore. We want to get a Þgh type of American seaman, and to do this we have to eliminate the waily wags.

If, in the judgment of this committee, it would be preferable to have the wage differential, section 305, paid by the Sea Service Bureau instead of the Shipping Commissioner, it would make little difference, and maybe this could be more easily managed, but I prefer the first named method.

That Congress shall immediately create a board of 6 men, 2 from the Officers' Association, 2 from the Seamen's American Union, and from the Department of Commerce, to study and formulate a plan for old-age pensions for seamen, unemployment insurance, and kick benefits. One-third of such necessary contributions to be paid by the shipowner, one-third by the United States Government, and one third by the officers or men themselves.

The men and officers who man our American ships are the men who will make or break our American merchant marine. Don't forget, gentlemen, that a captain of a medium-sized steamship in England, Norway, Germany, France, Italy, Japan, and nearly all other countries is paid and circulates in the saine class as doctors, awyers, judges, and professional men. In the United States today, we send a captain out on a steamer with cargo and passengers and crew and he is paid little better than a truck driver receives. Then, we find fault with the men if they happen to fail at any time to live up to the great "traditions of the sea", so-called, or if they fail to remain with their sinking ship until the last passenger is safe.

Americans will live up to all the great traditions of the sea, but you have to make it worth their while to become seamen; you have got to pay them and you have got to treat them like Americans.

Further, masters and officers and engineers are employed by the month; they are paid by the month, and their employment and salary should run by the month. You can never have an American merchant marine if the present practice is followed of laying off masters and officers and engineers as soon as a vessel ties up for a week or two. Foreigners do not do this, why should American owners be permitted to do it!

TITLE IX-ADMINISTRATIVE POWERS

Section 901: This section should be changed to read as follows: There is hereby establisted in the Department of Commerce the Office of Martie Affaits, at the bead of which shall be an Assistant Secretary of Commerce for Maritive Affairs to be appointed by the President, by and with •he advice and consent of the Senate, and to be pud a salary at the rite of $10 per annum Such Assistant Secretary shaud, under the direstion of the Necretary of Commerce, Lave control and supervision of all administrative hotivities under this net; all the duties vested in the Department of Comporre in connection with the administration of the navigation laws, the inspec1. b. construction, equipment, and makliilig of Vessein, aids to navigatin, and ang other duties relating to the merchant marine, now under the jurisdiction

of the Department of Commerce, and such other duties in connection with maritime affairs to be performed in the carrying out of the provisions, primary purposes, and intent of this act.

Section 902:

All the power and authority vested in the United States Shipping Board or the United States Shipping Board Emergency Fleet Corporation or the United States Shipping Board Merchant Fleet Corporation by the Shipping Act, 1916, the Merchant Marine Act, 1920, the Merchant Marine Act, 1928, and the act authorizing suits in admiralty against the United States, and so forth, approved March 9, 1920, are hereby transferred to and vested in the Secretary of Commerce.

RULES AND REGULATIONS.

Section 903: That the Assistant Secretary for Maritime Affairs shall prescribe and publish such rules and regulations, not inconsistent with the provisions, purposes, and intent of this act, as may be necessary to the efficient administration of the function with which he is charged under this act.

That the Secretary of Commerce is hereby authorized to build up a suitable organization of clerks, attorneys, and so forth, to handle the necessary machinery for the administration of this act, including the Sea Service Bureau.

That all employees in the Department of Maritime Affairs, under the Assistant Secretary of Commerce for Maritime Affairs, be appointed under the civil service.

TITLE X.-MISCELLANEOUS

APPROPRIATIONS

Section 1001: To remain as it is.
Section 1002: To be eliminated.

TRANSFER OF APPROPRIATIONS

Section 1003 (a): To remain as it is, except that where the word "Authority" appears, it shall be changed to "Office of Maritime. Affairs."

REQUISITION OF VESSELS

Section 702 (a): The following vessels may be taken over and purchased or used by the United States Government for national defense or during any national emergency declared by proclamation of the President.

(1), (2), (3), (b) and (c) eliminated and the following substituted for same:

Any vessel enjoying a building subsidy under this act, and any vessel enjoying an operation subsidy under this act, and any vessel enjoying a financial subsidy under this act shall, in time of national emergency, if required by the United States Government, be taken over on one or two plans, at the option of the Government, as follows:

"It can be purchased by the Government by the full return to the shipowner of all moneys paid by him in interest, amortization, and capital invested and no more; and when subsidy agreements are made, this shall be a part of such subsidy agreement.

"The vessel can be chartered by the Government on any form of charter and on any conditions, at the Government's option, by payment by the Government to the shipowner a charter hire that will net the shipowner 10-percent

Interest on his investment of actual cash in the vessel, plus depreciation at the rate of 5 percent per annum on the adlusted price of the vessel, as of her

oding date, and the Government shill pay for nil repults to such Vessel and ren her at the end of such charter in the same cot dition in walch she was when she went on their charter, ordinary wear and tear excepted

It might be well for me to mention here that we have heard for yeare now about a merchant marine which we would have for a iational emergency. Now it would appear that the same ships which the Government finances and subsidizes are going to be sold back or chartered to the Government, who financed and may have the largest financial interest in them, at some kind of extortionate price. Remember, gentlemen, the Government is subsidizing these ships so that they will have them when they need them, so when they need them let them take them and make the owners whole on the transaction, which is all that any reasonable man can expect. Surely the great drive on at present to take the profits out of war nt apply at least to a subsidized shipowner, if it applies to anybody.

CONFERENCES

Section 1005: To be eliminated and the following substituted therefor:

Tat there s! Il be appropriated by Congress and given in trest to the Off e of Maritime Aff xirs a fund of $5 000 000, to be known as an “American merchast marine fund * This fund to be used only in the event of a rate war or conference break up where one or more foreign lines are engaged in a rate cutting war to the detriment of American stentners engaged in such trade or directly affected by with rate war.

T« fund is to be used by the Assistant Secretary of Commerce for Maritime Affairs to el arter and pay for American ships, on the usual Government form of time charter, at a rate that will pay only the actual cost of operation and the interest and amortization charges of the Governmelit, so as to enable such timeetartered Vessels to cut rates to the point even of carrying freight for nothli á. unti nghting conference members are forced into line

This fund is to be held always as a threat over all delinquent conference members, and its existence can be used by American shipowners to force up the ocean-rate structure. Under today's level of rates no ships can operate at a profit, no matter what flags they fly, and, of course, Americans, even with a subsidy, can do no better than their foreign competitors.

Se tion 1006: Absolutely eliminated, as it defeats the idea of fair and free competition.

ANNUAL REPORTS TO CONGRESS

Section 1007: The Assistant Secretary for Maritime Affairs shall make a report to the President of the administration of the functions with which he is charged under this act, including complete statement of loans, and so forth, and other expenditures under this act, and the President, in turn, can send such reports to the Congress with such recommendations as he may see fit to make.

TRANSPORTATION OF GOVERNMENT OFFICIALS

Section 100%: To remain intact and the following to be added :

It is hereby prohibited for any official or Government employee to receive or rse any free pass on any steamer of the United States or joy ng the boy of sof tile act.