placements needed each year, because I doubt if the average length of time that a merchant sailorman stays at sea is more than 10 years.

I read an article the other day in one of the British trade journals in which it was estimated that in the British merchant marine the average length of time that unlicensed men remained in the merchant service was approximately 10 years. I doubt if in our merchant marine it would be any greater.

So, there must be an average replacement in our merchant marine, from some source, of from 3,000 to 4,000 a year. However, they might as well come through this training system as simply go to sea until they have worked up to be an ordinary seaman or able seaman. Therefore, 500 boys in training are going to make very little difference in the surplus of men, if there is such, in our merchant service.

Senator GIBSON. Are you familiar with the British plan as to merchant service?

Rear Admiral WAESCHE. Only generally, sir. The British merchant service does train unlicensed personnel, and it also trains licensed personnel. There are a number of schools in England-12 or more, I believe the most famous being at Conway, Worcester, and Pangbourne. They are primarily for training officers, but there is a progressive system over there whereby a boy who is in the unlicensed training is available, or eligible to take the licensed training. That would be the same in anything else that we would set up here. These boys after a year's care would be enrolled in the maritime service. Each one of the boys who qualified in his rating would receive a retainer pay of one month per year. In addition to that, in order to retain his status, he would have to spend at least 8 months on a merchant ship out of every year and 1 month with the Coast Guard, in a so-called refresher course. During that 1 month that he came back to the Coast Guard each year after he had qualified in all respects as a fireman, wiper, water tender, or whatever other job he might have that month's time could be devoted to training in other subiects and in preparation for advancement even up to a license.

Senator ELLENDER. Do I understand you to say that the replacements each year aggregate between three and four thousand?

Rear Admiral WAESCHE. That was purely a guess on my part, estimated on the basis of 40,000 or 50,000 men needed in our merchant service and an average period of time spent in the merchant marine. service of 9 or 10 years.

Senator ELLENDER. Assuming that your figures are correct, why would you then provide training for only four or five hundred? Would you limit the training only to a certain percentage of those who go into the service, or would you provide it for everybody?

The CHAIRMAN. He has probably had experience with the Budget, Senator.

Senator ELLENDER. Personally, I think it would be a good investment, Mr. Chairman. If we are to subsidize and help these owners to build ships, we ought to protect our investment. That is the view I take of it.

Senator GIBSON. I think you are correct.

Senator ELLENDER. To what extent would you advocate it, Admiral? You are now talking of training from 400 to 500, but you say

32437-38-pt. 8-5

that replacements each year are from 3,000 to 4,000. Assuming that the replacements would be from 3,000 to 4,000, would you advocate training that many men per year?

Rear Admiral WAESCHE. Yes, sir; I would, later on: but I feel that starting out with a plan, we should start with a small number until we get the difficulties ironed out and clear the way to get a good system established. I think we should go at the matter slowly rather than jump in over our heads, until we have it systematized.

Senator ELLENDER. You say that the training would usually require a year. It might be that in the course of time, depending on what the seaman does, that you could train them to do particular jobs in less time.

Rear Admiral WAESCHE. It might be possible; and for certain ratings it might require more time.

Senator GIBSON. Do you think that training these men into the service would lengthen their period of time in the service? You say that at the present time there is a 10-percent replacement in Great Britain. If we have more trained men in the service, do you not think that it will tend to keep them in the service longer?

Rear Admiral WAESCHE. The whole system would tend to keep the men in the merchant marine longer, because it would make the service more attractive.

Senator GIBSON. Has the English plan worked out satisfactorily?

Rear Admiral WAESCHE. I am not prepared to say, Senator; of course, we always hear that the British have the finest merchant marine in the world. As to whether or not that is true, I have no first-hand information,

There are two or three other points which I might raise, so as to let the committee understand just what facilities the Coast Guard has to do its work.

We have in the Coast Guard today 130 or more commissioned officers and warrant officers who have had, previously, licensed service in the merchant marine. We have quite a few officers who were graduates of State school ships before they came into the Coast Guard.

We are working with the merchant marine almost daily in law enforcement work and in the saving of life and property. We are in daily contact with the merchant service, so we feel that the Coast Guard does understand the psychology of the seamen probably as well as, if not better than, any other Government agency. We should; we certainly have the opportunity to do it.

The CHAIRMAN. Have you had offered to you some Government property in New York Harbor for the training of men?

Rear Admiral WAESCHE. Yes, sir. There are in New York Harbor Hoffman Island and Swinburne Island. I believe they are now owned by the Public Health Service. Hoffman Island was once a quarantine station. It has something like 15 buildings, and they are in a very good state of repair. I, myself, visited Hoffman Island and went through the buildings. A number of the buildings are almost new, so the cost of establishing a training unit on Hoffman Island would be very little. The buildings are there, and the Public Health Service has no more use for the island. It is now, I think, listed with the Procurement Division as available for transfer to some other agency. So, the plan proposes that this first small unit

that we would start with would be established on Hoffman Island, in New York.

The CHAIRMAN. Are there any questions from the committee? If you care to add anything, Admiral, you may do so. We would be very glad to hear whatever you have to say.

Rear Admiral WAESCHE. Thank you. There is just one more point I might make, and that is with respect to the press reports with regard to the trouble in our merchant marine. I think there is no question that the confidence of the public is falling off rapidly, particularly with regard to our passenger ships. I believe that the assignment of these Coast Guard officers to merchant ships, officers from a service whose international as well as national reputation for safety at sea is well known, would help somewhat to restore the confidence of the traveling public in our merchant marine.

The CHAIRMAN. Would you have trouble enlisting the number of men you would need for this service?

Rear Admiral WAESCHE. We would have no difficulty at all. Do you mean as to enlisting in the Coast Guard for the training?

The CHAIRMAN. No. Suppose you were to add 100 men on merchant ships.

Rear Admiral WAESCHE. No, sir; we would have no difficulty at all. The plan proposes, Mr. Chairman, and I think this is a very important point, which I have not touched on, that we would have the authority to draw, and we would draw, on the present licensed personnel of the merchant marine to assist in this training, so that any immediate shortage in the Coast Guard would be filled by the use of licensed officers of the present merchant marine. We feel that it is almost necessary that we have licensed officers.

The CHAIRMAN. They would go into training in your school? You would have experienced men, men who had training in the Coast Guard, to take over the work upon the ships as the traveling agents of the Coast Guard?

Rear Admiral WAESCHE. The traveling agents on the ships would be Coast Guard officers, but to assist in the training system, we would use licensed officers of the present merchant marine to assist us in that work.

The CHAIRMAN. Are there other questions?

Senator MALONEY. I dislike asking this question, because I came in late. Would you have one officer on each ship?

Rear Admiral WAESCHE. Not one on every ship; it would be a rotating scheme. We visualize using perhaps about 50 officers on that duty. They would go from ship to ship, possibly staying on one ship for several voyages, maybe on other ships for only one voyage. It would not be the same officer each time; it would be a rotation, the men coming back to regular duty with the Coast Guard. So, it would not be a fixed proposition of having one officer on one particular ship.

Senator MALONEY. While he was there, what would his authority be?

The CHAIRMAN. The admiral went into that quite extensively before, Senator.

Senator MALONEY. Then I shall not go into that.

Senator GIBSON. We have received a considerable amount of testimony indicating that the labor conditions on American ships are very bad. This committee has received such testimony. Have you any independent information as to the conditions that exist?

Rear Admiral WAESCHE. None whatever. In closing, I should like to submit for the record a proposed bill which was transmitted to this committee by the Secretary of the Treasury on December 3, 1937. This bill covers the plan I have discussed this morning.

A BILL To further the policy of the United States as declared in Section 101 of the Merchant Marine Act, 1936, to foster the development and encourage the maintenance of an adequate American Merchant Marine by the establishment of a system for the proper training of crew personnel, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled.

TITLE I-DEFINITIONS

SECTION 101. When used in this Act

(a) The term "Commission" means the United States Maritime Commission. (b) The term "Commandant" means the Commandant of the Coast Guard. (c) The term "enrolled person" means any person enrolled, either in a temporary or a permanent status, licensed or unlicensed, in the United States Maritime Service as established herein.

(d) The term "merchant vessels of the United States" means ocean-going vessels of one hundred (100) tons gross and upward documented under the laws of the United States.

TITLE II-TRAINING OF PERSONNEL

SECTION 201. In order to provide a trained and efficient personnel for the United States Merchant Marine, the Commission and the Commandant are authorized and directed to establish and maintain a system, and to prescribe a course, for the training of citizens of the United States to qualify them for service in the Merchant Marine. Persons selected for training shall be enlisted in the temporary establishment of the Coast Guard for a period of not less than one nor more than two years, during which period of enlistment they shall be subject to the laws, regulations, and orders for the government of the Coast Guard. Upon the completion of the course of training prescribed hereunder, and one year's service on board merchant vessels of the United States, such persons shall be eligible to receive certificates of service in the appropriate ratings upon certifications by the Commandant to the Secretary of Commerce: Provided, That upon examination, under rules prescribed by the Secretary of Commerce, such persons are found to be physically qualified for such certificates. SEC. 202. For the administration of the course of training prescribed under . Section 201 of this Title the Commandant is authorized to utilize, when obtainable, the services of licensed and unlicensed personnel of the United States Merchant Marine, and also the personnel, vessels, stations, equipment, organization, and other facilities of the Coast Guard and of other agencies of the Government. The Coast Guard Institute is authorized to make available to persons receiving such course of training and to enrolled persons all appropriate extension courses prescribed by said Institute.

SEC. 203. There is hereby established, under the jurisdiction of the Commission, the United States Maritime Service (hereinafter referred to as the "Maritime Service"), which shall, unless otherwise provided by law, be administered by the Commandant, and shall consist of such licensed and unlicensed personnel of the United States Merchant Marine as may be enrolled under the provisions of this Act. The Commission is authorized and directed to determine the number of persons to be enrolled in the Maritime Service and, jointly with the Commandant, to prescribe the courses of training.

SEC. 204. The Commandant is authorized to enroll in the Maritime Service persons who have satisfactorily completed the course of training prescribed under Section 201 of this Title and former personnel of the Navy or Coast Guard who were discharged therefrom under honorable conditions. The Commandant is authorized to enroll in a temporary status in the Maritime Service

licensed officers of merchant vessels of the United States, unlicensed personnel who have been employed at least one (1) year on board merchant vessels of the United States, and graduates of school ships approved by and conducted under rules prescribed by the Secretary of Commerce: Provided, That such persons may be permanently enrolled when they shall have satisfactorily completed a course of training prescribed by the Commission and the Commandant, which training shall be with the Coast Guard and for a period of not less than three (3) months. Every enrolled person shall be a citizen of the United States. SEC. 205. Every enrolled person who during any continuous period of twelve (12) months shall serve not less than eight (8) months on board merchant vessels of the United States and shall also serve not less than one (1) month on training duty with the Coast Guard shall be paid an amount equal to one (1) month's pay of the rank, grade, or rating in the Coast Guard which corresponds to his in the Maritime Service. Any enrolled person who fails to perform such period of service, but who during any continuous period of twenty-four (24) months shall serve not less than sixteen (16) months on board merchant vessels of the United States and shall also serve not less than two (2) months on training duty with the Coast Guard, shall be paid an amount equal to two (2) months' base pay of the rank, grade, or rating in the Coast Guard which corresponds to his in the Maritime Service. Any enrolled person who fails to perform either of such periods of service, but who during any continuous period of thirty-six (36) months shall serve not less than twenty-four (24) months on board merchant vessels of the United States and shall also serve not less than three (3) months on training duty with the Coast Guard, shall be paid an amount. equal to three (3) months' base pay of the rank, grade, or rating in the Coast Guard which corresponds to his in the Martime Service. These payments shall be in addition to any pay and allowances which he may receive or to which he may be entitled for services rendered in the Merchant Marine or with the Coast Guard; but in computing such additional payments any pay or allowances received by such person during the same period for service in or with any United States naval reserve organization shall be deducted.

SEC. 206. Every enrolled person shall, at the discretion of the Commandant, be permitted to serve with the Coast Guard at such times as such person may elect, a total of not more than three (3) months during any continuous period of thirty-six (36) months: Provided, That the Commandant, with the approval of the Secretary of the Treasury, may permit enrolled persons to serve additional periods of time with the Coast Guard if the Commandant determines that such additional service is in the public interest.

SEC. 207. Every enrolled person when employed on authorized training duty or other equivalent instruction or duty, or when employed in authorized travel to or from such duty or instruction, shall be subject to the laws, regulations, and orders for the government of the Coast Guard: Provided, That disciplinary action for an offense committed while so subject to such laws, regulations, and orders shall not be barred by reason of release from training duty of an enrolled person charged with the commission thereof.

SEC. 208. If, during any enrollment for a continuous period of thirty-six (36) months, any enrolled person shall serve less than twelve (12) months on board merchant vessels of the United States, or shall during such period serve less than two (2) months with the Coast Guard, or shall be found by the Commandant to be otherwise disqualified to serve in the Maritime Service, his enrollment shall be terminated. Such person may be re-enrolled in the Maritime Service under such regulations as the Commandant may prescribe.

SEC. 209. The ranks, grades, and ratings for enrolled persons shall be the same as are now or shall hereafter be prescribed for the personnel of the Coast Guard. The Commission and the Commandant shall prescribe regulations for determining the requirements for the various ranks, grades, and ratings, and for appointing enrolled persons thereto.

SEC. 210. If any enrolled person is physically injured in the line of duty while performing active duty or authorized training duty with the Coast Guard, or when employed in authorized travel to and from such duty, or dies as the result of such physical injury, he or his beneficiary shall be entitled to all the benefits prescribed by law for civil employees of the United States who are physically injured in the line of duty or who dies as a result thereof, and the United States Employees' Compensation Commission shall have jurisdiction in such cases and shall perform the same duties with reference thereto as in the cases of civil employees of the United States so injured: Provided, That in no