Mr. BYRNE. Mr. Chairman, I would like to associate myself with the remarks of Mr. Green. Mr. HERD. It has been a privilege to be here. Mr. DURHAM. The committee will stand adjourned subject to a meeting on Monday which will be worked out with the counsel. HOUSE OF REPRESENTATIVES, SUBCOMMITTEE No. 3, Washington, D. C., Monday, August 11, 1958. The subcommittee met, at 10 a. m., in room 313-A, Old House Office Building, the Honorable Carl T. Durham (chairman of the subcommittee) presiding. Mr. DURHAM. The subcommittee will come to order to give further consideration to H. R. 12640, a bill which would authorize the sale of certain Army piers in the city of Philadelphia to the city of Philadelphia. (Discussion off the record.) Mr. DURHAM. Let the record show that a quorum being present, the subcommittee accepted a variation of the Army version of the bill, and the bill will provide that the property must be used in perpetuity as a marine terminal and cargo and passenger operation and that the city of Philadelphia shall pay fair market value to the United States for the property. The last requirement of the bill is that the deed of conveyance shall contain such other terms and conditions as the Secretary of the Army determines to be in the public interest. There being no objection the bill is reported in the manner just described. (Thereupon, the subcommittee adjourned.) O FULL COMMITTEE CONSIDERATION OF H. R. 12640 AND SENATE AMENDMENTS TO H. R. 8522 HOUSE OF REPRESENTATIVES, COMMITTEE ON ARMED SERVICES, Washington, D. C., Tuesday, August 12, 1958. The committee met at 10 a. m., Hon. Carl Vinson, chairman, presiding. The CHAIRMAN. Let the committee come to order. The purpose of the hearing this morning is to have a report from Subcommittee No. 3, that has been considering H. R. 12640. Mr. Durham, have you a report to make? Mr. DURHAM. Mr. Chairman and members of the committee, Subcommittee No. 3 met on 3 days to consider H. R. 12640, a bill which would authorize the Army to convey certain marine facilities owned by them and located in the city of Philadelphia. These piers and other facilities are excess to the Army's needs and neither the Air Force nor the Navy has any requirement for them. It has been submitted to them also. As H. R. 12640 was introduced, it provided among other things that the city purchase the marine facilities from the United States for $500,000. An appraisal made for the Army indicates that the full fee value of these piers, conveyed without restriction, is in the order of $4.5 million. The Army wanted these conveyed without any restrictions for future use. After taking testimony from the mayor of Philadelphia and other interested persons from that city, and testimony also from Army representatives including Assistant Secretary Short, the subcommittee drafted its own bill. The typewritten bill which you have before you is a substitute for H. R. 12640 and for the Army's own alternative bill. The Army's alternative was identical to the new subcommittee version with two exceptions. The exceptions are as follows: The Army's bill sets out the sum of $4.5 million as the fair market value to be paid by the city. The Army bill also would convey the property without any restriction whatsoever. The subcommittee's version contains no money figure but states that the property shall be conveyed at fair market value as such is determined by the Secretary of the Army. I understand, Mr. Kelleher, that was agreeable to the Army. Mr. KELLEHER. Yes, sir. Mr. DURHAM. The subcommittee bill also requires that the property to be conveyed shall be used in perpetuity as a marine terminal. Otherwise, the bills are identical. The subcommittee felt by a majority that it was wise to insure that these important marine facilities be kept in shape for use by the United States if the need therefor arose in the future. About 40 percent of all of this shipping there goes through this base at the (8221) 20066-58-No. 98 present time. Also, realizing that the question of value of a complicated facility such as a marine terminal is a matter of judgment, it was a better course to allow latitude for further appraisals and negotiations between the city and the Army in order to determine what the city should pay taking into consideration all of the facts and circumstances including the fact that the city must maintain the facility as a Marine terminal. The vote in the subcommittee was unanimous, Mr. Chairman. Mr. Kelleher, will you read the substitute bill? Mr. KELLEHER. Yes, sir. [Reading:] Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Army is authorized to convey, on or before January 1, 1960, by quitclaim deed to the city of Philadelphia, Pennsylvania, all the right, title, and interest of the United States in and to the facilities of the United States in Philadelphia known as the Philadelphia Army Supply Base consisting of approximately 53.75 acres, situated at the foot of Oregon Avenue, including Delaware piers 96, 98, and 100 south, the upland between the bulkhead line of said piers, and the reservation fences on the easterly side of Delaware Avenue, and the plot on the westerly side of Delaware Avenue known as the lumber storage and concentration yard together with all appurtenances pertaining thereto and all improvements located thereon. Mr. DURHAM. That is identical language that was in the Army bill? Mr. KELLEHER. Yes, sir, it is. [Reading:] SEC. 2. The conveyance herein authorized shall be made upon the following conditions: (1) That the property shall be used in perpetuity as a marine terminal for cargo and passenger operation, and shall be maintained in all respects for such use by the city of Philadelphia. (2) That the city of Philadelphia shall pay the United States the fair market value of the property as such is determined by the Secretary of the Army. (3) That the deed of conveyance shall contain such other terms and conditions as the Secretary of the Army determines to be in the public interest. Mr. DURHAM. I might say, Mr. Chairman, at this point that this property has already been turned over to General Services. Now the question arises as to whether or not it is going to fall into the hands of private operators or whether the Government is going to continue to have the use of this in the future. The CHAIRMAN. Let me ask you this question, Mr. Durham: Is this substitute approved by the Department of the Army? Mr. Kelleher? Mr. KELLEHER. The Army would rather there be a conveyance without any restriction whatsoever, in order that they would be out of the real estate business entirely. That is the only objectionable aspect, Mr. Chairman. The CHAIRMAN. All right. Mr. DURHAM. I might say, Mr. Chairman, since they have adopted this policy down there, when they turn it over to the General Services, they take the position that they don't want anything else to do with that piece of property from now on, forever. The CHAIRMAN. May I interrupt you? I think it is in the interest of the defense of the country to require these terminal facilities to be maintained. The only question that I see was that the Army fixed the value at $4,500,000. The city of Philadelphia, in maintaining these piers, must spend about $2 million to keep them in proper condition. Now, this bill puts the responsibility on the Secretary of the Army to dispose of it at fair market value. Mr. DURHAM. I might say, Mr. Chairman, at this point: I loaded ships there in 1917 and 1918, when this pier was being built-it was completed in 1921. We didn't get it completed until after the First World War. Now, there is no doubt the piers are in very bad shape. The elevators are not operating; I think 50 percent of them. We have all of that evidence in the record. Unless something is done by the city of Philadelphia, which I think should have charge of the pier, if we are going to turn it over to them-unless something is done, why, this pier is going to be absolutely useless in the next few years. The CHAIRMAN. Exactly. As you just stated, 40 percent of the commerce in the harbor of Philadelphia uses these piers. In addition to that, the Government built these piers. They are very important piers in outloading and used by the Department of Defense in case of national emergency. We are requiring that the Government receive fair market value for the property. We are putting an obligation on the city of Philadelphia that these piers shall be used in perpetuity as a marine terminal for cargo and passenger operations. Mr. DURHAM. Well, here is the other point, too, Mr. Chairman. I think the gentleman from Philadelphia will bear me out. They can berth ships there and they can berth up to 12 if they have to. It is quite a berthing dock. Most of the berthing docks in the Philadelphia area-run what, 2 to 4? Mr. BYRNE. Three to four. Mr. DURHAM. Three to four. The CHAIRMAN. Members of the committee, I think the facts warrant favorable consideration of this substitute. If there are no questions from anyone on the committee, I will ask for a vote on the substitute. All in favor of the substitute, when your name is called, vote "aye", and all opposed, vote "no". Call the roll, Mr. Smart. [Rollcall.] Mr. SMART. Mr. Chairman, on this vote there are 24 yeas and no nays. The CHAIRMAN. A quorum being present, 24 members having voted in the affirmative, the substitute is agreed to. I will ask that Mr. Byrne-you are the author of the bill, are you not? Mr. BYRNE. Barrett is the author of the bill. I was on the steering committee. The CHAIRMAN. I will ask, then, if no members from Philadelphia on the committee have introduced the bill, I will ask Mr. Durham to report the bill and take such parliamentary steps to have it immediately considered. Mr. DURHAM. Mr. Chairman, Green is on the committee. The CHAIRMAN. All right, have Mr. Green report the bill, then. Mr. Green reports the bill, He and Mr. Durham and Mr. Byrne, Mr. Gavin, Mr. Van Zandt, and other committee members from Philadelphia and Pennsylvania, will take charge of the bill. Now, I think this bill can go on the Consent Calendar. Mr. KELLEHER. Yes, sir. |