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This recommendation is being sent to the various chambers of commerce throughout the seven Pacific Coast States, and will be taken up actively through the Washington representative of the Los Angeles Chamber of Commerce.

For your information, the new locks at the Panama Canal will require approximately 6,500,000 barrels of cement or 1,235,000 tons. A review of the statistics released by Government agencies for the 11 months of 1939 indicate the following shipments were made from the Atlantic seaboard to the Panama Canal Zone and the Republic of Panama:

Barrels To the Panama Canal Zone (11 months, 1939)

178, 029 To consignees, Republic of Panama (11 months, 1939)

46, 577 Total.--

224, 606 As you are aware, Congress is now in session, and would request that you again take up this matter with your local chambers of commerce as well as your Congressional delegation, advising them of the need of immediate action in order to assist the Pacific coast in securing a portion of the business at the Panama Canal Zone. Please point out to them that what applies to cement applies to practically every other commodity produced, manufactured or grown in the States of California, Oregon, and Washington. Yours very truly,

(Signed) JAMES A. KELLER.

EXHIBIT O Capital investment in Pacific-coast terminals, public and private, and longshoremen

and dock workers pay rolls

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Incomplete reports from 14 Pacific-coast ports show a total terminal investment, public and private, of over $171,000,000, with water-front pay rolls (exclusive of Oakland, Calif.) for the year 1939 of over $15,100,000. Estimates of pay-roll losses already experienced ranged from 10 percent to as high as 70 percent for some of the smaller out-ports. Inasmuch as many services were not curtailed until end of the first quarter of 1940, pay-roll losses will be most acutely felt during the forecoming months.

EXHIBIT 0-1

PORT OF ASTORIA,

Astoria, Oreg., April 8, 1940. REPORT FROM THE PORT OF ASTORIA DISTRICT, COLUMBIA RIVER Industries, constituting an investment of approximately $10,000,000, in our district are 90 percent dependent upon steamship service to maintain normal operating conditions.

These industries are now operating at 20 percent below normal output due to inability to book space in the Atlantic, Gulf, and coastwise trades; and accumulating surplus will, within the next 60 days, reduce such operation to 50 percent of normal, with corresponding loss to labor.

There are approximately 5,000 men dependent upon such operations and their tributary industries. Due to lack of intercoastal space, lumber mills, operating on a 75 to 80 percent normal output have a present daily loss of 5,000 man-hours which, within 60 days, will be reduced to 50 percent below normal with a 10,000 man-hour daily loss to labor.

The daily lumber output is about 1,000,000 board feet. There is at the present time lumber sold in intercoastal and coastwise trades for which space is not available, approximately 30,000,000 board feet, or 35,000 tons. It is estimated that space will be required within the next 6 months, in addition to the present allotment, of 65,000,000 board feet or approximately 90,000 tons. The Atlantic, Gulf, and coastwise trades constitute 80 percent of our total tonnage, amounting to 600,000 tons, bout one-half of which is lumber.

Reduced business conditions in our district are noticeable at present and in 60 days will effect one-half of the business interests in the community; and by July, without an improvement in coastwise and intercoastal shipping facilities, we will experience a local depression affecting all business.

R. R. BARTLETT, Manager.

EXHIBIT 0-2

PORT OF LONGVIEW, April 6, 1940,

SUBJECT: SHORTAGE OF SPACE ON VESSELS Definitely the port of Longview has been penalized in their movement of cargo to the North and South Atlantic ports as well as the foreign movement by water due to lack of sufficient space aboard carriers.

A recent survey of ndustrial shipments reveal that the lumber, pulp, and paper movements have to a large extent been compelled to move their commodities, that normally moved by vessel, by rail if they expected to complete their orders to their customers.

Our plywood industry disclosed that they were receiving approximately 30 percent of their normal requirements and pointed out one definite movement to the South Atlantic of 1,750 tons that they will be compelled to ship by rail as not a foot of space is available for this movement. Normal requirements are approximately 200 tons per week.

The pulp industry shows a normal requirement of a thousand tons per week, all of which has been diverted to rail since February 1 with the exception of one shipment of 900 tons recently. Warehouses are full with no immediate relief in sight.

The paper industry also have been forced to reduce their weekly commitments intercoastly and have diverted their coastwise tonnage of about 25,000 per year to rail for the past several years due to lack of water transportation in this trade. They too will probably present their case more fully by their own representatives.

The paper board industry show more of a foreign lack of space. They recently had 1,200 tons for China that they were forced to send by rail to Seattle and thence to vessel due to the fact that no space was available on the Columbia River.

Our basic industry of lumber has naturally been the most penalizd and no doubt will present their case through their association, however from a local viewpoint the docks are not only piled to capacity, but in some cases they have been compelled to reduce their production by decreasing the days of operation. In presenting their case they will go into detail as to normal requirements through their own reports.

The public dock has had a million feet of lumber on their docks for the past several months waiting space allotments and to date have failed to secure any. Pulp and other commodities has piled up on the dock and warehouses, causing great congestion, and we can see no relief in sight. Our regular intercoastal service has been reduced from weekly to every 10 days and that not very dependable.

While no definite curtailment of employment has been noted, with the exception of the lumber industry, it will not be long until this will begin to appear unless some relief is provided. The longshoremen do not as yet show any decrease laid primarily to the fact that this port has suffered a shortage of men in the local for the past year or more, but if this shortage of space continues and no relief given they too will be showing a reduction in wages received.

Millions of dollars of public money has been invested in public terminals as well as millions of dollars of private capital and the smaller ports have in proportion invested millions of their taxpayers' money in terminals to meet the demand made upon them to provide docks and warehouses for the movement of the goods by. water, to this has been added additional capital from private industry totaling many more millions all to avail themselves of water transportation, all of these investments stand in danger if vessels are not provided to handle the wares of these industries as well as the merchants. The port of longview serves a territory of approximately 300,000 population with an industrial pay roll of twenty to twenty-five millions of dollars annually and the water transportation has been a vital factor in building up this condition but if sufficient space for requirements are not provided the consequences will be serious and the loss to every citizen will be enormous. The condition is serious and must be remedied if the economic conditions remain undisturbed.

EXHIBIT 0-3

PORT OF WILLAPA HARBOR,

Raymond, Wash., April 11, 1940. PACIFIC COAST ASSOCIATION OF PORT AUTHORITIES,

San Francisco, Calif. GENTLEMEN: The port of Willapa Harbor, like all other Pacific coast ports, finds itself unable to obtain sufficient east-bound space to take care of its immediate requirements. Nominally, we obtain from 12 to 15 calls per month of vessels, both coastwise and intercoastal. At present, or more specifically during the months of January, February, and March, we were able to obtain only about 60 percent of the space which could have been used.

We realize that this same situation exists at all other ports, but probably we are unique in one phase of the situation, this being that through the recent withdrawal of Swayne & Hoyt service to Gulf ports, we have been completely shut out of this territory. The understanding, at least verbally, between the Swayne & Hoyt interests and the Maritime Commission at the time of sale, was that other steamship lines making the Gulf, would increase the frequency of their sailings and thereby make available the same service to shippers as had been enjoyed prior to such sale. To date, this has not been done, or if such frequency of sailings of other Gulf lines has been increased, the port of Willapa Harbor has not been included in their range.

We understand, of course, that the Maritime Commission has no authority to require any operator in the domestic trade to cover any particular ports of call, or maintain any particular service.

As a direct result of this loss of service to Gulf ports through withdrawal of Swayne & Hoyt, two of our large plants were compelled to close down, these being the Case Cedar & Shingle Co., and one unit of the Willapa Harbor Lumber Mills Co. One of the plants mentioned has, at considerable expense, installed more kiln space for drying shingles so that at least a portion of the output could be shipped by rail at a considerably higher rate.

The port of Willapa Harbor, therefore, is desperately in need of service to the Gulf and joins the Pacific Coast Association of Port Authorities in urging that prompt and proper action be taken to increase the intercoastal services.

We are attaching tabulation showing water-borne shipments from Willapa
Harbor during the year 1939.
Respectfully submitted.

PORT OF WILLAPA HARBOR,
L. D. WILLIAMS, JR.,

Engineer and Manager.

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Steel coasters.
Steel tankers.

Do.
Wooden coasters.
Steel coasters.

Do.

Do. Wooden coasters.

Coastwise:

Sudden & Christenson..
Standard Oil Co..
Union Oil Co..
Hart-Wood Lumber Co.
Anderson-Middleton Lumber Co.
Hammond Shipping Co.
Lawrence Phillips Steamship Co.

A. B. Johnson Lumber Co.
Intercoastal:

Arrow Line
Swayne & Hoyt, Ltd..
Dutton Lumber Corporation..
Calmar Line
McCormick Steamship Co.

J. A. Turner Lumber Co.
Foreign:

United Ocean Transport Co.
W. R. Grace & Co..
Yamashita Shipping Co.
Canadian Transport Co.
Anglo Canadian Shipping Co., Ltd.
International Shipping Co.
De La Rama Line
Westfal-Larson Line.
Klaveness Line..
Knutsen Line
States Steamship Co.

Steel steamers.

Do.
Do.
Do,
Do.
Do.

Japan.

Steel steamers. West coast, South America... Do. Japan.

Do. Japan-China.

Do. Japan..

Do. do.

Do. do.

Steel motorships. West coast, South America - Steel steamers. Japan.

Steel motorships. West coast, South America.. Do. Japan..

Steel steamers.

Vessels and draftsTrips of vessels calling at Willapa Harbor during 1939

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Total, 143 (includes 1 United States destroyer). Longest vessel, 476 feet. Deepest draft, 23 feet 2 inches. The above does not include: Ocean log rasts, 8 trips; hogged fuel barges, 62 trips.

EXHIBIT 0-4

PORT OF VANCOUVER,

Vancouver, Wash., April 8, 1940. Pacific Coast AssocIATION OF PORT AUTHORITIES,

130 South Pico Avenue, Long Beach, Calif. (Attention: Mr. John L. Kelly, Secretary-Treasurer.) GENTLEMEN: The present shortage of ship space in intercoastal trade is reflecting a considerable damage upon this as well as other port communities, and it becomes imperative that steps be taken to correct not only the present situation but the further decrease of space for coastwise and intercoastal shipments in prospect as the result of anticipated additional sales of American ships to foreign interests.

While the shortage of ship space is reflecting generally upon industry on the Pacific coast, perhaps the greatest damage in the Northwest is being reflected upon the lumber manufacturers, in that lumber markets are confined principally to the east coast. Unless early steps are taken to provide additional water-carrier space, it will shortly be necessary for lumber mills in the Northwest to curtail their operation to a point contemplating production for a purely local trade. Of four tidewater mills at Vancouver, one is completely closed down, two are on the verge of having to curtail operation and the fourth is faced with the prospect of being unable to operate a newly completed plant. The first of these four mills referred to has delayed reopening since early fall, purely as the result of inadequate space for the accommodation of their East Coast shipments. This mill, with a capacity of 3,000,000 feet per month, would ordinarily employ an average of 80 men. The mill last referred to has been completed and running for approximately 30 days only and being entirely dependent on water shipment to consuming territory, it is evident that if more adequate space is not provided this mill will be forced to close completely, nullifying a considerable investment as well as depriving the community of a substantial pay roll.

In addition to the four tidewater mills, there are a great number of small mills in the area trucking their lumber to our port facilities for water shipment. Brokers who negotiate for the sale and shipment of lumber for these small mills are unable to accept orders for east coast shipment due to lack of steamship space. Inasmuch as these mills cut principally for east coast shipment, a continuation of the increasing shortage of ship space will close these mills completely.

Fruit and vegetable canneries in this area are likewise confronted with a very serious problem in contemplating their 1940 pack. As the result of the loss of the European market, Northwest canneries are necessarily forced to pack for the east coast markets and unless they can be assured of ship space adequate to the accommodation of their prospective east coast sales, it will be impossigle for them to pack for this competitive market, reflecting a considerable damage not only upon the canneries themselves, but upon the producing farmers and the seasonal cannery employees.

In addition to lumber and canned goods, a considerable volume of paper, plywood, and grain and grain products is shipped through this port for eastern markets. Manufacturers of these commodities are unable to accept orders for east coast delivery, due not only to inadequate space for water shipment, but likewise due to the considerable delays involved. Inasmuch as the principal market for these commodities is the east coast, it can be appreciated that an increasing lack of space will practically close these plants.

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