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prolonging the hearings indefinitely, so that it is requested that statements be as brief as possible consistent with the importance of the subject matter.

Let the bills and agency reports appear at this point in the record. (H.R. 156, H.R. 723, and H.R. 7491 along with agency reports, follow :)

[H.R. 156, 89th Cong., 1st sess.]

A BILL To require the inspection of certain towing vessels

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 4427 of the Revised Statutes (46 U.S.C. 405) is amended to read as follows:

"(a) When used in this section

"(1) The term 'Secretary' means the Secretary of the department in which the Coast Guard is operating.

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'(2) The term 'towing' means pulling, pushing, or hauling alongside, or any combination thereof.

"(3) The term 'towing vessel' means all tugboats, towboats, towing boats, and other vessels engaged or intended to engage in the service of towing, which are above fifteen gross tons or twenty-six feet or over in length. "(b) All towing vessels regardless of manner of propulsion, and whether documented or not, shall be inspected under the provisions of this title.

"(c) The Secretary shall, before a towing vessel is put into service, and at least once every two years thereafter, cause it to be inspected, and shall satisfy himself that it (1) is of a structure suitable for the service in which it is to be employed; (2) is equipped with the proper appliances for lifesaving and fire protection; (3) has suitable accommodations for the crew; and (4) is in a condition to warrant the belief that it may be used, operated, and navigated with safety to life and property in the proposed service.

"(d) The Secretary may, in order to secure effective provision against hazard to life and property created by vessels subject to this section, prescribe such regulations as may be necessary with respect to the following matters:

"(1) The design, construction, alteration, or repair of towing vessels. "(2) Operation of towing vessels, including the waters in which they may be navigated.

"(3) Manning of towing vessels and the duties of the licensed officers and members of the crews of such vessels.

"(4) Licensing and certificating of crews of towing vessels.

"(e) In prescribing regulations for towing vessels the Secretary shall give consideration to the age, size, service, route, and other factors affecting the operation of the vessels. If the Secretary determines that the application to any towing vessel of the regulations prescribed for towing vessels is not necessary in the public interest, he may exempt that vessel from the application of the regulations, or any part thereof, upon such terms and conditions and for such periods as he may specify.

"(f) A certificate of inspection issued to a towing vessel may at any time be voluntarily surrendered.

"(g) The Secretary may prescribe reasonable fees or charges for (1) any inspection made and (2) any certificate, license, or permit issued under this section or the regulations prescribed hereunder."

SEC. 2. If any amendment made by this Act or the application of any amendment made by this Act to any person or circumstance is held to be invalid, the application of that amendment to other persons or circumstances or to the remainder of the amendments made by this Act shall not be affected thereby.

SEC. 3. The amendments made by this Act become effective on January 1, 1966, or on the first day of the sixth month following the promulgation of regulations under the amendments made by the first section of this Act, whichever is later.

[H.R. 723, 89th Cong., 1st sess.]

A BILL To require the inspection of certain towing vessels

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 4427 of the Revised Statutes (46 U.S.C. 405) is amended to read as follows:

"(a) When used in this section

"(1) The term 'Secretary' means the Secretary of the department in which the Coast Guard is operating.

"(2) The term 'towing' means pulling, pushing, or hauling, or any combination thereof.

"(3) The term 'towing vessel' means all tugboats, towboats, towing boats, and other vessels engaged or intended to engage in the service of towing, which are above fifteen gross tons or twenty-six feet or over in length.

"(b) All towing vessels regardless of manner of propulsion, and whether documented or not, shall be inspected under the provisions of this title.

"(c) The Secretary shall, before a towing vessel is put into service, and at least once every two years thereafter, cause it to be inspected, and shall satisfy himself that it (1) is of a structure suitable for the service in which it is to be employed; (2) is equipped with the proper appliances for lifesaving and fire protection; (3) has suitable accommodations for the crew; and (4) is in a condition to warrant the belief that it may be used, operated, and navigated with safety to life and property in the proposed service.

"(d) The Secretary may, in order to secure effective provision against hazard to life and property created by vessels subject to this section, prescribe such regulations as may be necessary with respect to the following matters: "(1) The design, construction, alteration, or repair of towing vessels.

"(2) Operation of towing vessels, including the waters in which they may be navigated.

"(3) Manning of towing vessels and the duties of the licensed officers and members of the crews of such vessels.

"(4) Licensing and certificating of crews of towing vessels.

"(e) In prescribing regulations for towing vessels the Secretary shall give consideration to the age, size, service, route, and other factors affecting the operation of the vessel. If the Secretary determines that the application to any towing vessel of the regulations prescribed for towing vessels is not necessary in the public interest, he may exempt that vessel from the application of the regulations, or any part thereof, upon such terms and conditions and for such periods as he may specify.

"(f) A certificate of inspection issued to a towing vessel may at any time be voluntarily surrendered.

"(g) The Secretary may prescribe reasonable fees or charges for (1) any inspection made and (2) any certificate, license, or permit issued under this section or the regulations prescribed hereunder."

SEC. 2. If any amendment made by this Act or the application of any amendment made by this Act to any person or circumstance is held to be invalid, the application of that amendment to other persons or circumstances or to the remainder of the amendments made by this Act shall not be affected thereby.

SEC. 3. The amendments made by this Act become effective on January 1, 1966, or on the first day of the sixth month following the promulgation of regulations under the amendments made by the first section of this Act, whichever is later.

[H.R. 7491, 89th Cong., 1st sess.]

A BILL To provide for the licensing and certificating of officers on certain vessels Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Department in which the Coast Guard is operating shall, in order to insure safe navigation, issue

regulations governing the licensing and certificating of masters, pilots, or other persons in charge of navigation of every vessel propelled by machinery engaged in or intended to engage in the service of pulling, pushing, hauling alongside, or any combination thereof, or in the service of delivery of supplies or personnel to offshore structures or floating rigs working on or over the Continental Shelf.

Hon. HERBERT C. BONNER,

THE SECRETARY OF THE TREASURY,
Washington, April 8, 1965.

Chairman, Committee on Merchant Marine and Fisheries,
House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: Reference is made to your request for the views of this Department on H.R. 156 and H.R. 723, identical bills to require the inspection of certain towing vessels.

The purpose of the proposed legislation is to bring towing vessels propelled by means other than steam under inspection by the Coast Guard.

Section 4427 of the Revise Statutes (46 U.S.C. 405) presently requires the inspection of "every tugboat, towing boat, and freight boat." This section is part of an extensive statutory pattern to insure high standards of safety on merchant vessels through regulation and inspection by the Coast Guard. Although phrased in broad terms, section 4427 has been interpreted by the courts as applying only to vessels propelled by steam. As a result, motor propelled towing vessels are not presently subject to inspection unless they are seagoing vessels of over 300 gross tons.

The anomaly whereby steam towing vessels are subject to inspection and motor towing vessels performing practically identical services are not has long been recognized. This anomaly has become increasingly apparent with the increasing dominance of the diesel towing vessel as compared to the steam towing vessel. At the present time, steam tugs have been almost completely superseded by diesel towboats. Figures show that in 1962 there were 5,016 diesel tugs in operation compared to 84 propelled by steam, while in 1964 there were 5,380 diesel tugs as compared to 50 propelled by steam.

The present interpretation of section 4427 of the Revised Statutes results in another inconsistency in that barges or self-propelled tank vessels carrying hazardous liquid cargoes on inland waters must be inspected and meet Coast Guard safety standards while motor-propelled tugs towing such barges are not required to be inspected. Considering the ever-increasing traffic in dangerous liquid cargoes and the fact that collision is a major source of marine casualties, an obvious potential hazard is involved in permitting such cargoes to be towed by vessels which at present are neither subject to the requirement for safety inspection nor subject to the licensing and certificating of their personnel.

During 1962 the Coast Guard made a comprehensive study of towing vessel operations. The study showed that of 5,100 vessels documented for towing service only 103 were inspected and certificated by the Coast Guard. A subsequent survey in 1964 showed that of 5,430 vessels documented for towing service only 71 were inspected and certificated by the Coast Guard. The remaining vessels, in both instances, were not subject to inspection under existing law.

The data obtained during the 1962 study also showed that while the number of towing vessels increased 20 percent over a 10-year period, the number of casualties increased by 120 percent to an average of 559 casualties per year for the period from 1960 through 1962. During 1962 for example, 530 towing vessels were involved in casualties serious enough to be reported, which is an average of 1 out of every 10 towing vessels in service. Detailed casualty figures for that year reveal that while no lives were lost due to casualties on inspected towing vessels, 15 lives were lost in casualties involving uninspected towing vessels. The figures further reveal that less than 3 percent of the inspected vessels were involved in reportable casualties compared to 10 percent of the uninspected vessels. During fiscal year 1962 estimated monetary damages due to casualties involving towing vessels were over $9 million.

The 1964 survey showed an increase of 330 documented vessels or 6 percent for the 2-year period since 1962. The average number of casualties for those 2 years was 515. During 1963, 525 towing vessels were involved in reportable

casualties; while in 1964, 599 vessels were involved in casualties serious enough to be reported. Detailed casualty figures for 1963 showed that, although no lives were lost on inspected towing vessels, 59 persons lost their lives as the result of marine casualties involving uninspected towing vessels. Similar figures for 1964 revealed that 43 lives were lost as the result of casualties involving uninspected towing vessels. Estimated monetary damages due to casualties involving towing vessels were $15,945,000 in 1963 and $12,335,000 in 1964.

Analysis of the casualty figures for towing vessels for the past several year leads to the conclusion that operation of diesel-towing vessels involves as great a hazard as operation of those propelled by steam, and that this hazard could be reduced by requiring these vessels to comply with Coast Guard safety standards. In brief, the Department has concluded that motor-propelled towing vessels should be brought under the statutory inspection scheme. The proposed bill would, therefore, amend section 4427 of the Revised Statutes to provide for the inspection of towing vessels regardless of the manner of propulsion.

The Department believes that the smaller towing vessels are not a sufficient safety hazard to warrant the increased administrative difficulties and costs which would result if they were subject to inspection. Therefore, the bill would exclude those towing vessels which are less than 15 gross tons and 26 feet in length. This would eliminate from inspection the smaller vessels which engage in limited operations.

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The casualty statistics also show that a large percentage of the casualties which have occurred on uninspected towing vessels are of a type which could be avoided or minimized if well-qualified personnel were aboard. For example, during fiscal year 1962, almost 60 percent of the reported casualties involved collisions while another 12 percent involved groundings of the tug or tow. 1963, 63 percent of the reported casualties involved collisions while another 15 percent involved groundings of the tug or tow. The 1964 survey showed that 64 percent of the reported casualties involved collisions and 16 percent involved groundings of the tug or tow. To minimize the hazard to life and property from operation of towing vessels by unqualified personnel, the proposed bill would contain authority to prescribe regulations regarding the manning of towing vessels and the licensing and certificating of their personnel.

The Department, of course, realizes that there are large numbers of vessels to which the strict application of the inspection and manning requirements would not be appropriate for one reason or another. In some cases it is not possible or practicable to bring the vessel into the strict compliance; in other cases to do so would result in severe economic hardship or loss of employment. Therefore, the proposed bill would require the Secretary to take into account the various factors which might approximately require a lessening of the inspection or manning requirements as to certain vessels. It would also give him authority to exempt additional vessels from the inspection requirements if necessary in the public interest. These provisions are intended to provide sufficient flexibility in administraton to enable the Secretary to tailor the inspection requirements more closely to the circumstances of individual vessels. With this authority it should be possible to achieve the maximum safety on towing vessels consistent with the least economic hardship and disruption to the industry. This authority would also permit the gradual application of the requirements to existing vessels to insure an orderly transition period with minimum interference to towing vessel operations.

The proposed legislation would require increased expenditures for inspection and clerical personnel since an additional 4,500 vessels would become subject to inspection. The Department estimates that an increase of 55 officers and 20 civilians would be required. This would result in additional costs of approximately $700,000 per year. The bill would authorize the Secretary to prescribe reasonable fees or charges for any inspection made or certificate, license, or permit issued.

There is attached a memorandum which contains in summary form the results of the study made by the Coast Guard of the operation of towing vessels.

Identical legislation was submitted to the 88th Congress by this Department. It was introduced as H.R. 9121 and referred to the House Committee on Merchant Marine and Fisheries, but no action was taken prior to adjournment. The Department recommends the enactment of the proposed legislation.

The Department has been advised by the Bureau of the Budget that there is no objection from the standpoint of the administration's program to the submission of this report to your committee.

Sincerely yours,

HENRY H. FOWLER.

MEMORANDUM RE OPERATION OF TOWING VESSELS

A. STATISTICS ON NUMBERS AND SIZES OF TOWING VESSELS

1. Vessels documented by Bureau of Customs for service of towing:

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2. Horsepower breakdown of towing vessels.-Horsepower is as furnished by the owner which is normally the manufacturers' engine rating.

Number of

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1 The information in pars. 2, 3, 4, and 5 was obtained from Bureau of Customs records on all vessels documented for towing service as of Dec. 1, 1961. It is believed these figures are accurate to within 1 percent on the average.

(Information for fiscal years 1963 and 1964 will be found in supplemental attachments 1, 2, and 3, attached herewith.)

Length (feet):

3. Length breakdown of towing vessels

45

1

15, 100

1 to 39

40 to 65.

66 to 99

100 to 149.

150 to 199.

200 to 299.

No data___

Total---

Number of towing vessels

919

2, 458

1, 238

449

12

2

22

5,100

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