Mr. Gray, do you believe the decline in coastwise shipping has been caused by the Coast Guard requirements?

Mr. GRAY. I have not been engaged in it, but I am told by the people that do work there that this has been a very important factor in their economy.

Mrs. SULLIVAN. Why would those requirements make them less profitable?

Mr. GRAY. As I understand it, it is the manning scales and the other labor problems that grow out of licensing.

Mrs. SULLIVAN. Have the tugs, or tows, or barges taken over some of the work that was handled by the other coastwise ships?

Mr. GRAY. They are beginning to develop a new trade in the barge industry along the coastline but I think this came after the demise of the coastwise shipping.

Mrs. SULLIVAN. In answer to the question Mr. Grover put to you about the manning program, would a training program for some of the lesser jobs on the tows or barges help you to have less of a turnover in some of the lower positions?

Mr. GRAY. Well, it gets back to each company's individual operation. In effect we carry out such a program of our own. When we bring a new untrained employee into our operation, he works on a harbor boat and is instructed how to handle lines, rachets, and wires before he goes on a towboat. This varies depending on our needs at the time. It is not formal in that he is examined and given so many hours of instruction, but he is acquainted with the equipment and is also given a safety manual which sets out the company's policies on how he is to conduct himself under various conditions.

Mrs. SULLIVAN. Does that help? We have had testimony that many of these people can't read and write. Can your people read these manuals?

Mr. GRAY. Yes, we are only hiring high school graduates.

Mrs. SULLIVAN. Would it be worthwhile to have a vocational school in the area where you do your main hiring and placement of personnel? Would you be able to-not only your, but others in your business— would you be able to employ enough of the personnel to make it worthwhile if they were trained for river work in the vocational school?

Mr. GRAY. Should such a facility be available and we were satisfied they were getting the proper instruction we would make use of it; yes, ma'am.

Mrs. SULLIVAN. They are training young fellows now in repairing motors and things of that kind. Why couldn't they add on additional instruction that would train them for river work if the potential is there for their being hired?

Mr. GRAY. Yes; I think that properly conducted that could be an

asset.

Mrs. SULLIVAN. Mr. Gray, do you have any figures that you could supply to the committee to substantiate your accident and safety record?

Mr. GRAY. Yes, not with me, but I would be glad to furnish it.
Mrs. SULLIVAN. Would you do that?

Mr. GRAY. Yes, ma'am.

Mrs. SULLIVAN. I think that is all, Mr. Chairman.

(The information follows:)

Hon. EDWARD A. GARMATZ,

ASHLAND OIL & REFINING CO., INC.,
Ashland, Ky., August 13, 1965.

Chairman, Subcommittee on Coast Guard, Coast and Geodetic Survey, and Navigation, House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: As a result of the testimony I presented to the committee and the discussion which followed, I was invited to submit additional information which is attached (see p. 235, line 18).

In compliance with the above-mentioned request, enclosed is a 10-year tabulation of our personal injury accident frequency experience. You will note our 1964 experience is one-eighth the 1954 record. I have obtained, from the National Safety Council publications, comparisons of 10 industries of a somewhat similar nature to ours. Note the barge and towing industry's record is better than nine of these and only pulp and paper exceeds their record.

Also attached is a curve sheet depicting the increase in Ashland's ton-miles from 1949 to 1964 (our volume in 1947 was 500,000 ton-miles; 1964 3.2 billion ton-miles) which has been referred to as a measure of exposure for both personal injuries and equipment damage. (See transcript p. 225, lines 9 to 15.) Shown thereon is the improvement in our accident frequency record from a high of 32 in 1953 to 0 in 1962 and 2.55 in 1964. Please note also the reduction in equipment losses per ton-mile reaching a high of 0.125 mils per ton-mile to the last 2 years of operation at 0.028 mils per ton-mile.

I trust this is the information requested. If additional information is required, please advise. I would also like to refer to the recommendation made by me on p. 227, line 17 "to require licensing of pleasure boat operators."

It should not be necessary for the Coast Guard to directly supervise this program any more than they were involved in the registration and numbering of pleasure boats. I believe by now only one State does not supervise this program. The same mechanics set up by the individual States for registration could be used to determine if these operators of power-driven pleasure boats are qualified in their knowledge of the rules of the road in a manner similar to qualifications for automobile driver's license.

I thank the committee through you for the opportunity to be heard. I sincerely urge that bills H.R. 156 and H.R. 723 be denied and a modified version, as recommended, of bill H.R. 7491 be considered favorably by your committee.

Sincerely yours,

ROBERT L. GRAY, Manager, River Operations.

1 Accident frequency rating is a nationally accepted method of recording industry experience and is approved by National Safety Council and American Standard Association.

Frequency: Number of disabling injuries by 1,000,000 divided by man-hours of exposure equals percent of injuries per 1,000,000 man-hours.

This report to be attached to the statement of Robert L. Gray on July 27, 1965, before the Committee On Merchant Marine And Fisheries of the U.S. House of Representatives in opposition to H.R. 723 and H. R. 156 with comments regarding H. R. 7491. 2 Not available.

Mr. GARMATZ. Mr. Morton?

Mr. MORTON. First I would like to welcome Mr. Gray to the com pany for many years. It is one of the fine companies in a part of Kentucky that needs industry very badly.

Mr. Gray, do you feel there are any new devices or new techniques on the horizon that would further contribute to safety on tows?

Mr. GRAY. There is work underway at all times by different operators to improve their navigation, improve their mechanical efficiency of the engines and the design of the towboats themselves. Consider able interest is being given to closed circuit television for use on the tows and the locks. There is yearly new improvements in deisel engine design and safety control and all of these things are being developed as they prove their reliability.

Mr. MORTON. Do you have any comparison between the towing industry and other forms of transportation such as railroad, air, and truck?

Mr. GRAY. I don't personally have that, Mr. Morton. I am sure it is available but it has not been developed for you. I could explore that for you and if possible, supply that with the other information. Mr. MORTON. Are we dealing with a very hazardous occupation, or an employment category that is a relatively safe job? Would you like to speak to that?

Mr. GRAY. I can't do it factually or detail it, but it is my impression that this industry is not more hazardous than deep sea operations, Great Lakes operations, or many of the other manufacturing industries, but I can't detail for you which one.

Mr. MORTON. How do you feel about the safety jobs of the men on the tows or jobs of comparable pay in your refineries?

Mr. GRAY. Well, within our own company apparently ours are much safer because we are in the top 4 or 5-let's say the top 10 of all the different departments in our company which must number approximately 30 and we are in the top 10 every year.

Mr. MORTON. Thank you very much, Mr. Chairman.

Mr. GARMATZ. Mr. Lennon?

Mr. LENNON. You have indicated your rate was approximately 50 percent less than 10 years ago?

Mr. GRAY. Yes, sir.

Mr. LENNON. You indicated you would support that?

Mr. GRAY. Yes, sir.

Mr. LENNON. Would you know how many fatalities you have had in the past 5 years, year by year from this operation, from towboats and barges?

Mr. GRAY. None.

Mr. LENNON. You use radar and sonar?

Mr. GRAY. Yes, sir.

Mr. LENNON. Would that be true-of course you are a subsidiary operating company of the Ashland Oil & Refining Co., but these independent operators operating 50 or 60 tugs, hundreds of thousands of barges, is their accident rate of injuries and fatalities comparable to yours, has it decreased 50 precent in the past 10 years or increased?