vessel sailing before this agreement has terminated shall complete the trip on which it sailed under the terms of this agreement.

IN WITNESS WHEREOF the parties hereto have executed this agreement as of the day and year first above written.

THE ATLANTIC FISHERMEN'S UNION,

LOCAL 21455, AMERICAN FEDERATION OF LABOR,

By PATRICK MCHUGH,

AUSTIN POWERS,

JOHN J. MURPHY,

A. F. of L. Representatives.

FEDERATED FISHING BOATS OF NEW

ENGLAND AND NEW YORK, INC.,

By B. F. WHALEN,

Vice President.

LAY (FOR DIESEL TRAWLERS)

There shall be deducted from the gross stock the following items:

From the crew's half of the remaining stock there shall be deducted the following items:

The net balance of this half shall be divided into 15 equal shares, 1 of which shall be paid to the captain and to each of the 14 members of the crew, consisting of the chief engineer, mate, second engineer, cook, and 10 fishermen. The owner guarantees that the share payable to each of the 14 members of the crew shall equal $25, and on all the regular trips on which the share is less than $25 the owner will pay the difference. This guaranty shall not apply to the captain. Each regular trip shall be considered a separate venture.

In the event of trips that are of less than 10 days' duration returning due to break-down, a daily per will be paid as follows:

Crew Mate_

Chief engineer_

Second engineer.
Cook

Per day

$2.50

4.50

5.00

4.00

4.00

The foregoing daily payments include all pers. The maximum payments shall not exceed the regular trip guaranty. The value of any fish that might be aboard on a trip returning due to break-down will be credited to the following trip, and all expenses in connection with the removal and sale of the fish and the other deductions from the gross stock and from the crew's share will also be carried forward to the following trip.

If there are more than 14 men in the crew, including the chief engineer, mate, second engineer, and cook, the maximum provision of the guaranty will be divided equally.

LAY (FOR STEAM TRAWLERS)

There shall be deducted from the gross stock the following items:

From the crew's half of the remaining stock there shall be deducted the following items:

The net balance of this half shall be divided into 15 equal shares 1 of which shall be paid to the captain and to each of the 14 members of the crew consisting of the chief engineer, mate, second engineer, cook, and 10 fishermen. The owner guarantees that the share payable to each of the 14 members of the crew shall equal $25 and on all regular trips on which the share is less than $25, the owner will pay the difference. This guaranty shall not apply to the captain. Each regular trip shall be considered a separate venture.

In the event of trips that are of less than 10 days' duration returning due to break-down, a daily per will be paid as follows:

Crew
Mate_

Chief engineer_.

Second engineer.

Cook----

$2.50 per day.

$4.50 per day. $5 per day.

$4 per day. Do.

The foregoing daily payments include all pers. The maximum payments shall not exceed the regular trip guaranty. The value of any fish that might be aboard on a trip returning due to break-down will be credited to the following trip and all expenses in connection with the removal and sale of the fish and the other deductions from the gross stock and from the crew's share will also be carried forward to the following trip.

If there are more than 14 men in the crew including the chief engineer, mate, second engineer, and cook, the maximum provision of the guaranty will be divided equally.

I have a telegram from Mr. Gilbert R. Johnson, of the Lake Carriers' Association, which states:

Regarding H. R. 5446, Great Lakes vessel operators fully approve provision calling for study of Great Lakes problems before legislation is enacted for those waters. Brief statement will be filed with you discussing several aspects of bill. Would appreciate permission to have statement inserted in record.

GILBERT R. JOHNSON, Lake Carriers' Association.

That permission has been granted.

(The following brief was subsequently filed for the record:)

Re H. R. 5446.

Hon. SCHUYLER OTIS BLAND,

LAKE CARRIERS' ASSOCIATION, Cleveland, Ohio, November 4, 1941.

Chairman, Committee on Merchant Marine and Fisheries,

Washington, D. C.

DEAR SIR: Unemployment compensation insurance is a new and untried experiment in the field of maritime employment. There are many peculiar conditions surrounding Great Lakes vessel operation, and it is believed that the proposal contained in section 12 (m), page 54, for a study by the Railroad Retirement Board of employment and unemployment on the Great Lakes is a sound approach. However, it is for the committee to determine whether a further study of the Great Lakes situation should be made. If it is the judgment of your committee that the Great Lakes should be included, it is respectfully suggested that the peculiar conditions of Great Lakes operations be specifically recognized in the bill. The attention of your committee is directed to some phases of the bill which, it is submitted, should be considered in connection with any study of the Great Lakes:

(1) FINDINGS OF FACT AND DECLARATION OF POLICY

(a) Some of the findings of fact upon which the declaration of policy is based are erroneous. In our opinion, it is not true that there ordinarily exists among workers engaged in transportation on the Great Lakes a volume of unemployment which lowers the efficiency and impairs the morale of such workers. It is well known that Great Lakes seamen are highly paid, and during peacetime the income which they earn per season of navigation compares favorably with income per annum of seamen on ocean ships. There is no justification for such a sweeping indictment as is contained in the bill, and the language should be entirely deleted or changed to conform to the facts.

(b) Not all water transportation is in direct competition with other forms of transportation. Heretofore the Congress has recognized that Great Lakes bulk carriers are inherently noncompetitive with other modes of transportation.

(2) SECTION 1. DEFINITIONS

(a) The term "employment," being limited to masters, officers, or member of the crew of a vessel, is so restrictive that there will be conflict between this proposed system of unemployment compensation and the laws of the several States. It has been held in Taylor v. McManigal ((C. C. A. 6) 89 F. (2d) 583) and Antus v. Inter-Ocean Steamship Company ((C. C. A. 6) 108 F. (2d) 185) that persons engaged in the fit-out and lay-up of vessels are not members of crews as that term is used in section 3 (c) of the Longshoremen's and Harbor Workers' Compensation Act, approved March 4, 1927, as amended. It is believed that the definition in this bill should be sufficiently comprehensive to include the work of a seaman whether it relates to preparation of a ship for operation or actual operation of the ship, or preparation for lay-up.

Amendment: Section 1 (e), page 4, line 20, should be amended by adding parenthetically after the word "vessel" the following: "including preparation of a vessel for operation or lay-up."

(b) With respect to the definition of the term "compensation," the entire per annum compensation of an employee would be taxable. Many Great Lakes men earn income in excess of $3,000 per season. Under the Social Security Act an employee's income is not taxable as to himself or as to his employer in excess of $3,000 per annum. The various State unemployment compensation laws do not impose tax upon employers for income of an employee in excess of $3,000 per year. The Railroad Unemployment Insurance Act limits the tax to the first $300 per month of each employee. There is no reason for a different principle in this bill. For purposes of uniformity and convenience of accounting practices, it is suggested that the rule of the tax imposed by the old-age provisions of the Social Security Act be followed and that compensation of an individual be taxed up to but not in excess of the sum of $3,000 per annum.

Amendment: Section 1 (g), page 6, should be amended by changing the period after the word "Board", in line 10, to a colon and adding: “Provided, however, That the term 'compensation' shall not include any remuneration paid to an employee in excess of $3,000 in any calendar year."

(c) Consideration should be given to modification of the definition of "day of unemployment" contained in section 1 (j), page 7, so as to include any day between April 16 and November 30, both dates inclusive. The period between those dates ordinarily embraces the season of navigation on the Great Lakes.

The definition of "day of unemployment" does not conform to the definitions found in many State unemployment compensation laws. During the navigation season when employees may be laid off because of contraction in the operation of vessels, many Great Lakes employees are capable of working ashore and do find gainful employment in other pursuits. The present definition makes no reference to the ability of a person to find work of which he is capable.

The unemployment laws of most States do not include as a "day of unemployment" temporary work which is remunerative. The definition in this bill should conform to other laws in this respect.

Amendment: Embodying the foregoing suggestions in the definition of "day of unemployment," we suggest that the first paragraph of section 1 (j), page 7, be amended to read as follows:

"(j) Subject to the provisions of section 4 of this Act, a 'day of unemployment,' with respect to any employee, means a calendar day which with respect to a Great Lakes employee occurs between April 16 and November 30, both dates inclusive, and on which he is able to work and is available for work and with respect to which (i) no remuneration is payable or accrues to him, (ii) he has not been able to find work of which he is capable, (iii) he has not secured temporary work for which he has received remuneration in excess of $1.00 per day or $5.00 per week, and (iv) he has, in accordance with such regulations as the Board may prescribe, registered at a registration office: Provided, however, That 'subsidiary remuneration,' as hereinafter defined in this subsection, shall not be considered remuneration for the purpose of this section: Provided further, That remuneration for a working day which includes a part of each of two consecutive calendar days shall be deemed to have been earned on the second of such two days, and any individual who takes work for such working day shall not by reason thereof be deemed not available for work on the first of such calendar days."

(d) The term "benefit year," as defined in section 1 (k), wholly ignores seasonal employment. Unless seasonal employment is recognized, thousands of Great Lakes seamen will automatically be entitled to unemployment compensation during the winter period, although they will have earned a good annual wage during the regular season of navigation.

Amendment: Section 1 (k) should be amended by changing the period following the word "March," in line 22, to a colon and adding: “Provided, however, That with respect to a Great Lakes employee, the term 'benefit year' means the period beginning April 16 and ending November 30: And provided further, That with respect to a Great Lakes employee, a registration period beginning in May and ending in June shall be deemed to be in the benefit year ending the succeeding November 30."

(3) SECTION 2. COMMENCEMENT OF BENEFITS

Under the laws of most States the tax for payment of unemployment benefits was collected over a period of about 3 years before payment of benefits was commenced. Under this bill benefits will start at the beginning of the third calendar quarter following effective date of the act. In order to create a working fund, a longer period commensurate with other unemployment compensation laws should be provided. At present employment for seamen is plentiful, and there would seem to be no need or justification for making the benefits available during the existing emergency. Benefits now made will encourage indolence, to the great detriment of the national defense. The problem of crewing ships, already acute because of the emergency, would only be aggravated by making the benefits immediately available to seamen.

Amendment: The first sentence of section 2 (a), page 10, should be amended to read as follows: "Benefits shall be payable under this act for unemployment commencing at the beginning of the first calendar quarter immediately following

expiration of the existing national emergency proclaimed by the President on May 27, 1941, as extended from time to time."

(4) SECTION 4. DISQUALIFYING CONDITIONS

The Railroad Unemployment Insurance Act disqualifies a person who is discharged or suspended for misconduct relating to his work. There is no such provision in this bill, with the result that a seaman could, on his own volition, without casualty or illness, quit a vessel and in due course obtain unemployment insurance. Furthermore, the seaman would not be required to seek employment in any but his customary occupation, although he may be well fitter for other work. The substance of the language embodied in recent amendments to many State unemployment compensation acts is that during any of a fixed number of days beginning with the day on which the administrative agency advises that he was discharged for intoxication, disorderly conduct, insubordination, or quite without good cause attributable to the employer, an employee may not be granted unemployment compensation.

Amendment: Section 4 (a), page 17, should be amended by inserting a new paragraph after line 19, as follows: "(vi) any of 40 days beginning with the day on which the Board advises that he was dischargeed for intoxication, disorderly conduct, insubordination, or quit without good cause attributable to the employer and the maximum number of days of unemployment within a benefit year shall be reduced accordingly."

(5) SECTION 6. REPORTS

By section 6, page 26, masters would be required to send shipping articles to the Railroad Retirement Board. That requirement would place a heavy and unnecessary burden upon masters of Great Lakes vessels. During recent years masters have been called upon to make a growing volume of reports, and unless the imposition of further reports is discouraged, masters will become clerks instead of navigators responsible for life and property. It would seem sufficient for the Board's purpose that each employer file with the Board separation reports showing name of seaman, length of service, and monthly, per diem, and total compensation. Amendment: Revision of the first paragraph of section 6, page 26, is suggested as follows:

"SEC. 6. Every employer of a master, officer, or member of the crew of a vessel, and every department and agency of the Federal Government which has in its employ or pays compensation to one or more employees, shall furnish to the Board such information, documents, and reports as the Board may prescribe in the administration of this Act; and every such employer, department, and agency shall furnish to the Board copies of such reports, documents, and information in its possession or which may be required by law to be prepared or retained by it as the Board may require in the administration of this Act. The Board may require reports and information required to be furnished it to be furnished under oath. Every person or organization engaged in the operation of facilities for the employment of employees shall furnish to the Board such information and reports on unemployment and placements as the Board may prescribe for the administration of this Act. Upon the termination of the employment of an employee, his employer with respect to such terminated employment shall, pursuant to such regulations as the Board may prescribe, issue to such employee a notation of discharge, unless entries are made with respect to such employment in a continuous discharge book possessed by, or a certificate of discharge issued to, such employee."

Very truly yours,

GILBERT R. JOHNSON, Counsel.

Then there is a letter which came from Mr. Ira A. Campbell, who had expected to be present. He states:

I had planned to appear and testify before your committee tomorrow, but I am tied up in a lawsuit which makes my coming to Washington today impossible. I am enclosing herewith a formal communication setting forth an amendment and the reasons therefor, which I should like to have inserted in the record.