STATEMENT OF CAPT. W. N. CHRISTENSEN, UNITED STATES NAVY, ASSISTANT DIRECTOR OF THE FLEET MAINTENANCE DIVISION, OFFICE OF THE CHIEF OF NAVAL OPERATIONS; ACCOMPANIED BY HUNTINGTON MORSE, MARITIME COMMISSION

Item 1 (a) (30), Title 50

Section 1271. Purchase, requisition, etc., of foreign vessels authorized during national emergency; compensation; claims against vessels.

Whereas Congress has power to provide for the common defense and general welfare and to regulate commerce with foreign nations and whereas for this purpose embargo Acts and nonintercourse Acts have from time to time been passed and whereas the commerce of the United States is at the present time interrupted and the general welfare of its citizens is threatened and an emergency has been declared, for the purposes of national defense, until six months after the termination of the present war shall have been proclaimed or until such earlier time as the Congress by concurrent resolution, or the President may designate, the President is authorized and empowered, through such agency or officer as he shall designate, to purchase, requisition, for any period during such emergency charter or requisition the use of, or take over the title to, or the possession of, for such use or disposition as he shall direct, any foreign merchant vessel which is lying idle in waters within the jurisdiction of the United States, including the Philippine Islands and the Canal Zone, and which is necessary to the national defense: Provided, That just compensation shall be determined and made to the owner or owners of any such vessel in accordance with the applicable provisions of section 902 of the Merchant Marine Act, 1936, as amended [section 1242 of Title 46]: Provided further, That such compensation hereunder, or advances on account thereof, shall be deposited with the Treasurer of the United States, and the fund so deposited shall be available for the payment of such compensation, and shall be subject to be applied to the payment of the amount of any valid claim by way of mortgage or maritime lien or attachment lien upon such vessel, or of any stipulation therefor in a court of the United States, or of any State, subsisting at the time of such requisition or taking of title or possession; the holder of any such claim may commence prior to June 30, 1943, or within six months after the first such deposit with the Treasurer and publication of notice thereof in the Federal Register, whichever date is later, and maintain in the United States district court from whose custody such vessel has been or may be taken or in whose territorial jurisdiction the vessel was lying at the time of requisition or taking of title or possession, a suit in admiralty according to the principles of libels in rem against the fund, which shall proceed and be heard and determined according to the principles of law and to the rules of practice obtaining in like cases between private parties, and any decree in said suit shall be paid out of the first and all subsequent deposits of compensation; and such suit shall be commenced in the manner provided by section 2 of the Suits in Admiralty Act [section 742 of Title 46] and service of process shall be made in the manner therein provided by service upon the United States attorney and by mailing by registered mail to the Attorney General and the United States Mari time Commission and due notice shall under order of the court be given to all interested persons, and any decree shall be subject to appeal and revision as now provided in other cases of admiralty and maritime jurisdiction: Provided further, That if the Maritime Commission, after consideration by it of evidence submitted to it within ten days after June 6, 1941, shall find that on September 3, 1939, and continuously thereafter, any vessel was exclusively owned, used and operated for its exclusive sovereign purposes by a sovereign nation making claim therefor, such vessel may be taken under this section only by purchase or charter; and in determining said ownership, use and operation the Commission shall disregard (1) all contributions made in whole or in part at any time to the construction, repair, reconditioning, equipping or operation of said vessel, (2) all such matters, in nature similar to or dissimilar from, the foregoing clause as in the opinion of the Commission are immaterial or irrelevant to the determination of such ownership. Use of such vessel at any time since September 3, 1939, in commercial trade shall be presumptively deemed to show that said vessel is not owned, used and operated by a sovereign nation for its sovereign purposes. The final determination by the Maritime Commission shall be conclu

sive: Provided further, That if any vessel shall be found under the proviso next preceding to be exclusively owned, used and operated by any sovereign nation so that it can only be chartered or purchased, and such vessel shall be chartered or purchased, then the cash to be paid for said charter or purchase, to the extent that may be necessary, after payment of existing claims and liens of creditors against said vessel, shall be held for application upon such debt, if any, as may be due to the United States from the sovereign nation so found to have exclusive ownership to said vessel: Provided further, That the Maritime Commission and the Department of Justice are authorized to make just provisions out of funds provided in section 2 of this Act [section 1272 of this Appendix] for employees displaced by the taking of any ship hereunder and report to the Congress their action within thirty days after the enactment of this Act [sections 1271-1275 of this Appendix]. June 6, 1941, 11 a. m., E. S. T., c. 174, section 1, 55 Stat. 242; June 16, 1942, c. 416, 56 Stat. 370; March 24, 1943, c. 26, section 3 (a), 57 Stat. 48. Section 1272. Availability of appropriation funds.

Funds appropriated by the Act of March 27, 1941 [c. 30], (Public Law 23, Seventy-seventh Congress), are made available to carry out the provisions of section 1 hereof [section 1271 of this Appendix], including payment of the costs of repair, reconstruction, or reconditioning necessary or incidental to the use or disposition under this Act [sections 1271-1275 of this Appendix] of vessels acquired, or the use or possession of which is acquired, under such section. June 6, 1941, 11 a. m., E. S. T., c. 174, section 2, 55 Stat. 243; June 16, 1942, c. 416, 56 Stat. 370.

Section 1273. Charter of domestic and foreign vessels; insurance; inapplicability to Neutrality Act of 1939.

(a) Until six months after the termination of the present war shall have been proclaimed or until such earlier time as the Congress by concurrent resolution or the President may designate, the United States Maritime Commission, whenever it finds that vessels in addition to those otherwise available are necessary for transportation of foreign commerce of the United States, or of commodities essential to the national defense, is authorized, notwithstanding any other provision of law, (1) to charter any vessel, whether undocumented or documented under the laws of the United States or of a foreign country, deemed by the Commission to be suitable for such transportation, without regard to the provisions of section 3709 of the Revised Statutes [section 5 of Title 41], on a time-charter or bare-boat basis, upon such terms and conditions, and for such period or periods, as the Commission may deem necessary or desirable in the public interest and at such rate of hire as it may deem to be fair and reasonable in view of the attendant circumstances, and (2) to charter any vessel chartered by the Commission under clause (1) hereof to a private operator, a citizen of the United States (including a corporation, partnership, or association, only if it is a citizen of the United States within the meaning of section 2 of the Shipping Act, 1916, as amended) [section 802 of Title 46], or to any department or agency of the United States Government, without regard to the provisions of title VII of the Merchant Marine Act, 1936 [sections 1191-1204 of Title 46], on timecharter or bare-boat basis, for use in any foreign trade or service or as otherwise hereinafter provided, upon such terms and conditions, for such period or periods, and subject to such restrictions as the Commission may deem necessary or desirable for the protection of the public interest, and at such rate of hire as it may deem to be fair and reasonable. Any department or agency of the United States Government is authorized to enter into such charters. All moneys received by the Commission under the provisions of this subsection shall be deposited in the construction fund of the Commission, and all disbursements made by the Commission in carrying out the provisions of this subsection shall be paid from such fund.

(b) The Commission is authorized to provide such insurance and reinsurance with respect to vessels (including any interest, or liability of the owner, charterer, or agent) chartered, purchased, requisitioned, or the title to which or the possession of which is taken over, under this Act [sections 1271-1275 of this Appendix], as it may deem necessary in connection with the operation, use, or disposition thereof under this Act [sections 1271-1275 of this Appendix], whenever it appears to the Commission that adequate and satisfactory insurance is not otherwise obtainable at reasonable rates and upon reasonable terms and conditions. The fund established pursuant to Public Resolution Numbered 94, Seventy-sixth Congress, approved July 18, 1940 [c. 639], (54 Stat. 766), shall

be available for all purposes of this subsection; and all moneys received from premiums and from salvage or other recoveries and all receipts in connection with such insurance shall be deposited to the credit of such fund, and all disbursements made by the Commission in carrying out the provisions of this subsection, including the payment of return premiums and all liabilities incurred hereunder, shall be paid from such fund. The provisions of sections 225 and 226 (a) to (e), inclusive, of the Merchant Marine Act, 1936, as amended, shall be applicable in the administration of this subsection.

(c) Nothing in this Act [sections 1271-1275 of this Appendix] shall be construed to modify or affect any provision of the Neutrality Act of 1939, as amended [sections 441-457 of Title 22]. June 6, 1941, 11 a. m., E. S. T., c. 174, section 3, 55 Stat. 243; June 16, 1942, c. 416, 56 Stat. 370; Mar. 24, 1943, c. 26, section 3 (j), 57 Stat. 51.

Section 1274. Purchase of domestic or foreign vessels; operated or chartered by Commission.

Whenever the United States Maritime Commission is authorized to charter vessels under section 3 hereof [section 1273 of this Appendix], it is further authorized, notwithstanding any other provision of law, to purchase any vessel, whether undocumented or documented under the laws of the United States or of a foreign country, deemed by the Commission to be suitable for transportation of foreign commerce of the United States or of commodities essential to the national defense, without regard to the provisions of section 3709 of the Revised Statutes [section 5 of Title 41], at such price and upon such terms and conditions as it may deem fair and reasonable and in the public interest. Such vessels and vessels otherwise acquired by or made available to the Commission may be chartered as provided in section 3 of this Act [section 1273 of this Appendix], or operated by the Commission upon such terms and conditions as it may deem desirable and in the public interest, giving primary consideration to the needs of national defense, and when so chartered or operated may be insured as provided in said section 3; but no vessel constructed under the provisions of the Merchant Marine Act, 1936, as amended [chapter 27 of Title 46], may be chartered to a private operator hereunder. All moneys received by the Commission under the provisions of this section shall be deposited in the construction fund of the Commission, and all disbursements made by the Commission in carrying out the provisions of this section or section 5 (f) [section 1275 (f) of this Appendix], shall be paid from such fund. June 6, 1941, 11 a. m., E. S. T., c. 174, section 4, 55 Stat. 244; June 16, 1942, c. 416, 56 Stat. 370; Mar. 24, 1943, c. 26, section 3 (k), 57 Stat. 51.

Section 1275. Documentation of vessels requisitioned, purchased, etc.; waiver of or exception to existing laws; coastwise trade permits; repair of vessels; effect of termination of Act.

(a) Notwithstanding any other provision of law, during the effective period of section 3 of this Act [section 1273 of this Appendix] any vessel (except a vessel constructed under the provisions of the Merchant Marine Act, 1936, as amended [chapter 27 of Title 46]), not documented under the laws of the United States, acquired by or made available to the Commission of this Act [sections 1271-1275 of this Appendix] or otherwise, may (1) in the discretion of the Commissioner of Customs be documented as a vessel of the United States under such rules and regulations or orders, and with such limitations, as the Commissioner of Customs may prescribe or issue as necessary or appropriate to carry out the purposes and provisions of this Act [sections 1271-1275 of this Appendix]; and (2) in accordance with the provisions of subsection (c) hereof engage in the coastwise trade when so documented. Any document issued to a vessel under the provisions of this Act [sections 1271-1275 of this Appendix] shall be surrendered at any time that such surrender may be ordered by the Commissioner of Customs. No vessel, the surrender of the documents of which has been so ordered, shall, after the effective date of such order, have the status of a vessel of the United States unless documented anew.

(b) Notwithstanding any other provisions of law, the President may, by rules and regulations or orders, waive compliance with any provision of law relating to masters, officers, members of the crew, or crew accommodations on any vessel documented under authority of this Act [sections 1271-1275 of this Appendix] to such extent and upon such terms as he finds necessary because of the lack of physical facilities on said ships, and because of the need to employ aliens for their operation. No vessel shall cease to enjoy the benefits and privileges of

a vessel of the United States by reason of the employment of any person in accordance with the provisions of this subsection.

(c) Any vessel while documented under the provisions of this Act [sections 1271-1275 of this Appendix], when chartered hereunder by the Commission to other Government agencies or departments or to private operators, may engage in the coastwise trade under permits issued by the Commission, which is hereby authorized to issue permits for such purpose pursuant to such rules and regulations as it may prescribe. The Commission is hereby authorized to prescribe such rules and regulations as it may deem necessary or appropriate to carry out the purposes and provisions of this Act [sections 1271-1275 of this Appendix]. (d) The second paragraph of section 9 of the Shipping Act, 1916, as amended [section 808 of Title 46] shall not apply with respect to vessels chartered to other Government agencies or departments or to private operators under section 3 or section 4 of this Act [section 1273 or section 1274 of this Appendix].

(e) Existing laws covering the inspection of steam vessels are hereby made applicable to vessels documented under this Act [sections 1271-1275 of this Appendix] only to such extent and upon such conditions as may be required by the regulations of the Commandant of the Coast Guard with the approval of the Commissioner of Customs: Provided, That in determining to what extent those laws should be made applicable, due consideration shall be given to the primary purpose of transporting commodities essential to the national defense. (f) The Commission without regard to the provisions of section 3709 of the Revised Statutes [section 5 of Title 41] may repair, reconstruct, or recondition any vessels to be utilized under this Act [sections 1271-1275 of this Appendix]. Any other Government department or agency by which any vessel is acquired or chartered, or to which any vessel is transferred or made available under this Act may, with the aid of any funds available, and without regard to the provisions of said section 3709 [section 5 of Title 41], repair, reconstruct, or recondition any such vessels to meet the needs of the services intended, or provide facilities for such repair, reconstruction, or reconditioning.

(g) In case of voyage of a vessel documented under the provisions of this Act [sections 1271-1275 of this Appendix] is begun before the date of termination of the effective period of section 3 [section 1273 of this Appendix], but is completed after such date, the provisions of this section shall continue in effect with respect to such vessels until such voyage is completed.

(h) When used in this Act [sections 1271-1275 of this Appendix], the term "documented" means "registered" and "enrolled and licensed." June 6, 1941, 11 a. m., E. S. T., c. 174, section 5, 55 Stat. 244; June 16, 1942, c. 416, 56 Stat. 370; 1946 Reorg. Plan No. 3, sections 101-104, eff. July 16, 1946, 11 F. R. 7875, 60 Stat. 1097.

Captain CHRISTENSEN. Mr. Chairman, my name is W. N. Christensen, captain, United States Navy. I am Assistant Director of the Fleet Maintenance Division in the Office of the Chief of Naval Operations, Department of the Navy.

The act of June 6, 1941, would be extended for the duration of the national emerency declared December 16, 1950, and for 6 months thereafter by section 1 (a) (30) of the joint resolution now being considered by this committee. This act, which was enacted by the Congress during the national emergency declared on September 8, 1939, authorizes the President to purchase, charter, or requisition the use of foreign merchant vessels lying idle in waters within the jurisdiction of the United States as considered necessary for the national defense.

Inasmuch as the Maritime Administration (Commission) controlled the vessels acquired under this law, I consider that agency to be the best source of statistical data covering activities under this lawthat is, the previous usage of this statute.

It is considered that the United States, by having this emergency statute available, was able to immediately acquire merchant tonnage which would have taken much valuable time to construct or acquire by other means. By past use and necessity of this statute, it is pointed

out that the extension of its existence is of primary interest to the Department of the Navy. The Navy is particularly interested in the extension of the law because it provides a means readily available by which the President might quickly immobilize foreign-flag merchant vessels in United States ports either to use them or to prevent their use by some other power.

Our present mobilization ship requirements indicate a large need for new construction or acquisition of merchant-type ships. The details of our mobilization requirements are classified and can be made available if security regulations are complied with. It is felt that the ability to secure foreign vessels quickly, by means of an existing statute, would enable the President to act with much greater effectiveness should there be any necessity for such action.

Therefore in the interest of continuing national preparedness and defense, it is considered highly desirable by the Department of the Navy that this emergency power of the President of the United States be continued.

That is the end of my statement, sir.

Mr. FORRESTER. Do you want to elaborate on that statement, Captain?

Captain CHRISTENSEN. Not at this time. I would prefer to do that by questioning.

Mr. PICKETT. Captain, the power conferred by the existing statute which you want extended has not been used in how long?

Captain CHRISTENSEN. Since the close of World War II, or near the close of it.

Mr. PICKETT. More specifically, I assume you have not taken over any of the vessels that you might acquire under the authority of this statute since some months prior to the conclusion of actual hostilities in 1945. Is that right?

Captain CHRISTENSEN. That is correct, sir.

Mr. PICKETT. I presume that it required some months after the conclusion of hostilities before you could or would release those vessels that had been taken over under the authority of the statute. Is that correct?

Captain CHRISTENSEN. That would have to be phased out, Mr. Congressman, depending on how they might be employed. As you recall, after the last war we employed merchant shipping for many months after the war to bring our people back and our supplies back.

Mr. PICKETT. I understand, and that is the reason I asked that question. It took quite a while to release all the vessels you had acquired under this statute, did it not, or have you released them all yet? Captain CHRISTENSEN. We have none now, sir.

Mr. PICKETT. Can you tell me at this moment approximately when the last one was turned back over to its original owners?

Captain CHRISTENSEN. That specific information I do not have with me, but I feel that Mr. Morse here from Maritime would have better statistical data on that, sir.

Mr. PICKETT. Could you answer that question, Mr. Morse?

Mr. MORSE. I cannot answer it specifically now, but I can say that, supplementing what the captain has said, Mr. Chairman, most of these vessels, by far the greater percentage, almost all were taken over in 1941 and 1942 and were returned as promptly as possible. And