Page images

Admiral LAND. Not to my knowledge. On shipments to lend-lease countries harbor, charges are advanced under reverse lend-lease ordinarily, regardless of the nature of the cargo moved. Mr. CASE. Will you check up on that point and find out what harbor or dock or unloading fees may have been paid for the use of harbors in India, and place the information in the record? Admiral LAND...Yes, sir. (The following is submitted for the record:) The practice of the War Shipping Administration with respect to vessel and vo; disbursements in India is as follows: 1. Payment of all bills incurred is made in cash by the local agent of the vessel operator, at the port in question. 2. The local agent bills the vessel operator's principal Indian agent for reimbursement and such reimbursement is made from a rupee revolving fund provided to the principal agent by the Indian Government. The bills are then examined and segregated and any items not eligible for reciprocal aid are reimbursed to the revolving fund by the vessel operator. All cargo handling activities, such as stevedoring, terminal expenses, etc. would be eligible for payment out of the reciprocal aid revolving fund provided by the Indian Government regardless of whether the cargo was lend-lease, military, or commercial.


Mr. CASE. In your statement you say, I believe, that it is anticipated that from }. you will get revenues of $1,153,800,000? Admiral LAND. Yes, sir. . Mr. CASE. Who pays that? Admiral LAND. The Foreign Economic Administration. f § CASE. But it is paid by the United States, out of Government undS. Admiral LAND. Yes. Mr. CANNoN. Lend-lease funds? Admiral LAND. Yes, sir. Mr. CASE. Not by the countries which are getting the shipments? Admiral LAND. No, sir. It constitutes a lend-lease charge against such countries. Mr. CASE. That is all.


Mr. CANNoN. We will take up the various items included in the revolving fund, and insert in the record at this point pages 9 and 11 of the justifications.

(The pages referred to are as follows:)

Revolving fund, 1946 budget, base statement

Regular appropriation 1945 act------------------------------ $450,000,000 Unobligated balance carried forward from 1944---------------- 2,090, 624, 717

Transferred from “Marine and war-risk insurance fund, revolving fund"-------------------------------------------------- 100,000,000 Total funds available during 1945- - - ------------------ 2, 640, 624, 717 Estimated unobligated balance available for 1946-------------- 1, 181,243,840 1,459, 380, 877

[blocks in formation]

part of 1945---------------------------- 10, 467,000 Contract terminals under contract for only part of 1945--------------------------------- 1, 414, 510

Base for 1946---------------------------

Revolving fund, 1946 budget, base statement—Continued

[ocr errors][ocr errors][ocr errors]

1, 223, 514, 880


Revolving fund base statement for 1946 (by functions and activities)

[ocr errors]
[ocr errors]
[ocr errors]
[ocr errors]
[ocr errors]
[ocr errors]

10, 143, 289 1,083, 580

32, 000 620,000

1,083, 580

32, 000 620, 000

[ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][ocr errors][graphic][graphic][graphic]


Mr. CANNoN. You have an item for charter hire for which you estimate an increase of $9,906,000 over 1945. We discussed charter rates at some length when we had this matter up before, and the committee was in hopes that rates would be reduced. I judge from this item that you have not been able to reduce them. What has been your experience in that respect? Admiral LAND. There will be an increase in the number of ships under charter and also the increase reflects the higher time charter costs on the bareboat out time charter back deals. Mr. CANNoN. It is due to two things: first, an increase in the rates, and, secondly, an increase in the number of vessels? Admiral LAND. It is primarily the increase in the number of vessels. Our rates were reduced to some extent by general order 37. They have not been increased. Mr. Johnson. That is shown on page 70, where there is given a complete analysis and reconciliation. Mr. CANNoN. What is that analysis? Give us a résumé of it. Mr. Johnson. The increase during 1946 represents the net sum of estimated adjustments as follows:

Base statement War Shipping Administration, 1946 budget, charter hire

[Amounts shown in thousands of dollars]

Adjust- Estimated ments obligations

1945 program ------------------------------- ---> --------------------------------------------- $346,765 Deduct items included in 1945, not required in 1946: 1. Vessels on hire part of year and purchased during year, 59 ships, nonRecurring------------------------------------------------------------ —$11,722 2. Casualties during year 1945, 10 ships, o------------------- –4, 324 3. Net decrease for return during 1945 of special chartered vessels, 4 ships---------------------------------------------------------------- —580 Total deductions------------------------------------------------- —16,626

Add excess of full-year cost during 1946 over 1945 cost of items required dur-
ing only part of 1945:
4. Net increase for new vessels delivered during 1945, 27 vessels-------. +15, 0.26
5. Net increase for 5 additional special chartered ships during 1945----
6. Net increase for 34 owned vessels which were bareboated out and

time chartered back during 1945------------------------------------ +10, 277
Total additions--------------------------------------------------. .+27, 093


Base for 1946 --------------------------------------------------------------------|------------ 357,232

Increase (+) or decrease (-) from base for 1946:
1. Casualties estimated for 1946, 5 vessels------------------------------- –2, 162
2. Net decrease in off-hire credit-------------------------- –81
3. Decrease for estimated purchases in 1946, 54 vessels —10,000
4. New deliveries during 1946, 14 vessels (in terms of vessel-years),------ +7,854
5. Increase for 48 owned vessels which will be bareboated out and time

chartered back during 1946----------------------------------------- +14, 295

- +9,906

1946 estimate------------------------------------------------------------------ 367,138


Mr. CANNON. Now, going back to page 16, what are the powers of this advisory board on just compensation? What are its functions? Admiral LAND. It is a body composed of three eminent jurists set up to determine equity and justice to the Government and to the

« PreviousContinue »