necessary to devote a substantial portion of available funds and facilities to control measures applied to the fisheries. Owing to the perishable nature of fish and shellfish, to the inferior standards of sanitation frequently followed in the handling of sea foods, to the susceptibility of fish to parasitization and to the general vicissitudes of the sea-food business, problems have continued to present themselves, and are indeed now before us, which call for action under the act. In the course of 25 or 30 years, conditions at times have dictated the need for intensive regulatory programs involving canned salmon, tuna, sardines, mackerel, and shrimp prepared from decomposed raw material; lake and marine fishes of both domestic and foreign origin infested with obnoxious parasites; and clams and oysters containing added water, to name only some of the projects. All such programs, while regulatory in character, have included a generous amount of effort toward education. The effect in practically all instances has been improvement in conditions, thus contributing benefits both to the consumer and to the industry. Present programs involve special attention to control of import commerce in parasitized whitefish and tullibees; to conditions existing in the New England fresh and frozen fish industry that are conducive to the shipment of decomposed fish fillets; and to the correction of certain insanitary practices still existent in sections of the crab-meat industry. The nature of future programs will, of course, depend upon specific situations as they are presented. By special provision the act grants the Administrator authority to organize and carry out a form of supervisory inspection over production and handling of sea foods. This service is voluntary on the part of the industry and may be granted at the discretion of the Administrator. At the present time it is in effect only in the shrimp- and oyster-canning industries. As guides to the shrimpand oyster-inspection services, regulations have been promulgated governing the sanitary conditions of the packing establishment, the quality of raw material used, the processes applied, the labeling and warehousing of the product insofar as is necessary to preserve the integrity of the official approval legend which by regulation must appear on all labels of canned shrimp and canned oysters for which a certificate has been issued. The act furthermore grants authority for the formulation of standards of identity, quality, and fill of container for foods whenever in the judgment of the Administrator such action will promote honesty and fair dealing in the interest of consumers. An order establishing a fill of container requirement for canned shrimp has been promulgated. We may expect in the not-too-far-distant future that efforts will be directed toward the formulation of standards of identity and possibly quality and fill of container for several fishery products on which some exploratory and preliminary investigational work has already begun. Cooperation is extended by the Public Health Service to the States in the development of their standards for the sanitary production, processing and marketing of certain types of shellfish, namely, oysters, clams, and mussels. This cooperative program involves periodic examination of State shellfish sanitation control measures including adequacy of regulations respecting the safety of growing areas, shucking and packing establishments and shipping methods, evaluation of enforcement procedures practiced by the States and the issuance of minimum requirements as a guide in appraising the State control measures. The program entails issuance by the State of certificates of approval to those dealers found to be operating in compliance with State regulations and the subsequent endorsement by the Public Health Service of the certificates issued by States whose control measures are approved by the Public Health Service. Lists of endorsed certificates are then issued at semimonthly intervals by the Public Health Service and sent to State and local health authorities throughout the country and to other interested persons. Admission of these types of shellfish to the local markets is largely based upon these lists depending, of course, on the vigilance of the local health authorities. II. INSURANCE OF WORKERS Under the 1939 amendments to the Social Security Act, coverage of old-age and survivors insurance was extended to fishermen on vessels of 10 net tons or more and all those engaged in the salmon and halibut fisheries, without regard to the craft on which they worked. Fishery Statistics (published by the Fish and Wildlife Service) estimates the total number of fishermen on vessels in 1940 at 35,965, and the total on boats and ashore at 88,830. The effect of the amendment was to extend coverage to the majority of the fishermen on vessels, and to most, but not all, of the remainder. The interest of the Social Security Board in fisheries is limited to an interest in the welfare and protection of the men engaged in the industry. In the field of employment security, this interest is expressed in the coverage of fishermen under the unemployment-compensation laws. While little has been accomplished as yet to give employees in the fishing industry protection during periods in which they have no work, there is at present considerable discussion of providing such portection, on the one hand, under State employment security laws or, on the other hand, under a special Federal system. In the field of old-age and survivors insurance, the Federal Security Agency is interested in the extension of coverage to all persons in the fisheries who are now excluded, irrespective of whether they are employed for wages or self-employed. As to effects on other Federal agencies, it is not believed that such effects are appreciable. This Agency has no suggestions as to additional administrative or legislative action to assist in development and use of fisheries products. Very sincerely yours, PAUL V. MCNUTT, Administrator. Mr. MCCANN. The letter of Fred Lavis, Jr., Assistant Director of the Foreign Division, War Production Board, dated June 12, 1944, and addressed to Mr. J. Hardin Peterson, will be received in evidence and included in the record at this point. (The letter referred to is as follows:) Hon. J. HARDIN PETERSON, WAR PRODUCTION BOARD, Washington, D. C., June 12, 1944. House of Representatives, Washington, D. C. MY DEAR MR. PETERSON: Your office has asked the War Production Board to give you information as to the priorities which have been issued in respect to the export of fishing equipment. From time to time the War Production Board has approved and rated export applications which cover practically all kinds of fishing equipment, including canning equipment for boats. Some of this equipment has been issued under lend-lease, but we believe that the majority of applications represent cash expenditures. We do not have records in the War Production Board as to the quantities of equipment which have been approved and assigned priority ratings nor do we have any break-down as to the destination of material. The department of Commerce export publications contain some information as to the export of fishing equipment but these records are not broken down as to end use and are, therefore, inconclusive as to total exports. For more exact information we must refer you to the Foreign Economic Administration which is the claimant agency for foreign account excluding Canada. As to priority ratings, the ratings assigned to foreign applications for fishing equipment are the same as those assigned to similar applications for domestic account. Commercial fishing enterprises are now entitled to apply an AA-1 rating to the delivery of maintenance repair and operating supplies. When a commercial fishing company needs a new item of capital equipment it is given an AA-3 rating, provided that its application establishes such need that the War Production Board can accord approval to the particular application. Higher ratings than AA-3 for capital equipment may be assigned provided that the individual application discloses special urgency. As to programs, the War Production Board has approved a small program for the Southwest Pacific which included general fishing equipment such as lines and nets. This program was administered by the United States Commercial Corporation. Some fishing requirements have also been included under the Russian protocol, and such items as rubber boots, nets, lines, and rain coats have been furnished. In addition, some fish canning equipment has been supplied to the Russians under the protocol. Fishing requirements for Iceland have been brought to our attention on a number of occasions, primarily because the economy of Iceland is so dependent upon the fishing industry. Iceland requires all types of fishing equipment in supplying fish to our Allies and considerable information is available in the Foreign Economic Administration as to the size of these requirements. In examining foreign applications for fishing equipment, the War Production Board does not approve these until the Foreign Economic Administration has given their affirmative approval. When this affirmative approval is given, the War Production Board accords the individual application approval provided that similar applications are being approved for domestic account. In the majority of instances the valuation is on the basis of quality rather than on the basis of quantity but quantitative protection is established for very critical items through allocations and quotas established for the Foreign Economic Administration as a claimant agency. In all instances the objective is to see that the applications are judged on the basis of providing the minimum materials required to maintain this essential industry in the United States as well as in foreign areas which are of interest to the United States. Sincerely yours, FRED LAVIS, Jr., Assistant Director, Foreign Division. Mr. MCCANN. A letter of William A. M. Burden, Acting Secretary of Commerce, dated June 12, 1944, addressed to the Honorable J. Hardin Peterson, will be received in evidence. (The letter referred to is as follows:) DEPARTMENT OF COMMERCE, Hon. J. HARDIN PETERSON, House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: Reference is made to your request of May 22, 1944, for a memorandum containing a summary of (1) All activities of this Department pertaining to fisheries; (2) the effect upon the Department of Commerce's activities with respect to fisheries or of any regulations or orders of any other agency or department of the Federal Government; (3) any suggestions which would increase the development of fisheries products, their transportation, distribution, and use as foods and for industrial and agricultural purposes; and (4) any legislation which would assist in the development of the fisheries industry. Since the transfer of the Bureau of Fisheries from the Department of Commerce to the Interior Department on July 1, 1939, the Department of Commerce has no direct or indirect activity relating to the administration of Federal laws or regulations pertaining to the fishing industry. In carrying out its broad functions of promoting, fostering, and developing the domestic and foreign commerce of the United States, the Department uses the basic statistics on the fishing industry collected by official and private organizations. This information is utilized, along with other general business statistics, in interpretation and analysis of trends in our national economy. The Department collects data on the production of processed fishery products, distributors' stocks, and shipment data on the canning of fish, as a part of the censuses of manufacture and business. This information is utilized by the Department in several studies of food distribution. The Department collects and disseminates statistics on United States foreign trade in fish and fish products and data on fishing and fish product industries and foreign trade of foreign countries in these commodities, for use in the Department's functions of United States foreign trade and studies of our economic relations with other countries. Regulations or orders of other agencies with respect to the fishery industry have no effect on our activities. The Department has no recommendations to make on these subjects at this time. Sincerely yours, WILLIAM A. M. BURDEN, Mr. MCCANN. A letter of Mr. Marvin Jones, Administrator, War Food Administration, addressed to the Honorable J. Hardin Peterson, dated June 20, 1944, will be received in evidence. (The letter referred to is as follows:) WAR FOOD ADMINISTRATION, Hon. J. HARDIN PETERSON, House of Representatives. DEAR MR. PETERSON: The information regarding the activities and objectives of this Administration with respect to fishery products, requested in your letter of May 22, 1944, addressed to Secretary Wickard, is presented below in the order of your request. 1. The activities of this Administration pertaining to fisheries and fishery products relate to the discharge of two principal responsibilities. (a) Under Executive Order 9280, dated December 5, 1942, the War Food Administration has the responsibility of insuring a supply of fishery products for the armed forces of the United States and its allies, for lend-lease, and for relief purposes. This supply of fish is secured by (1) a set-aside order on major canned fish items, (2) an allocation from the world supply of salt fish, and (3) voluntary sales to our armed forces of domestic fresh and frozen fish. (b) This Administration also has the responsibility of maintaining an efficient and proper distribution of the comparatively short supply of fish and fish products available for the civilian population of the United States. Although authority for the production and processing of fishery products was delegated to the Secretary of the Interior by the Secretary of Agriculture on February 8, 1944, the control over the distribution of these products was not so delegated and this function is now performed by the War Food Administration. 2. With a number of governmental agencies administering various phases of the production, processing, and distribution of fishery products, a high degree of coordination and cooperation is required and has been practiced. Examples of such coordination are as follows: (a) Activities of the Coordinator of Fisheries leading to an increase in the production of fishery products affect the supply available for allocation by the War Food Administration for governmental and civilian uses. Furthermore, because of the interrelationship between production and distribution, activities of the Coordinator of Fisheries affecting production may also affect the distribution of fishery products and require close cooperation between the Coordinator of Fisheries and the War Food Administration. (b) Ceiling prices established by the Office of Price Administration for Government purchase of fishery products have a direct bearing upon the procurement programs of the Wer Food Administration and upon its relations with the fishery industry. Ceiling prices on civilian purchases as well as the rationing of the civilian supply may affect the geographical distribution of fishery products and require cooperation between the two agencies and coordination of their activities. (c) The activities of other agencies, such as the War Production Board, the War Manpower Commission, the Army, or the Navy, may affect the supply or distribution of fishery products and thus require interagency cooperation. 3. The only suggestion which this Administration has to offer with respect to its relations with other agencies is that those agencies continue to cooperate with this Administration as they have in the past by consulting it prior to the issuance of orders or regulations which may affect its functions. 4. This Administration has no suggestion as to any legislation with respect to fishery products. Sincerely, MARVIN JONES, Administrator. Mr. MCCANN. A letter of Herbert E. Gaston, Acting Secretary of the Treasury, dated June 22, 1944, addressed to Mr. Peterson, will be received in evidence. (The letter referred to is as follows:) Hon. J. HARDIN PETERSON, Chairman, Subcommittee on Fisheries of the TREASURY DEPARTMENT, Committee on the Merchant Marine and Fisheries, House of Representatives. MY DEAR MR. PETERSON: Further reference is made to your letter of May 22, 1944, requesting certain information in connection with an investigation being made by your Subcommittee on Fisheries of the House Merchant Marine and 62788-44-9 Fisheries Committee. As the result of an informal inquiry made to your special assistant, Mr. McCann, it is understood that the only activities of this Department coming within the scope of your investigation are those of the Bureau of Customs. The following report, which sets forth activities under the Bureau of Customs which may have a bearing upon your investigation, has been received from the Commissioner of Customs: "Reference is made to your memorandum of May 29, 1944, with which you transmitted a copy of a letter from Representative Peterson, of Florida, in which he requests certain information for use in an investigation of the fishery industry being made by his Fisheries Subcommittee of the Committee on Merchant Marine and Fisheries. "Certain functions of the Bureau of Marine Inspection and Navigation and of the Secretary of Commerce, including those pertaining to registry, enrollment, and licensing of vessels, the assignment of signal letters, measurement of vessels, regulation of vessels in the coasting and fishing trades, and recording of sales, conveyances, and mortgages of vessels were transferred to the Bureau of Customs by Executive Order No. 9083, dated February 28, 1942 (7 F. R. 1609). Under authority of that order and pertinent statutes, instruments of title to fishing vessels of 5 net tons or over are recorded by collectors of customs who issue documents to such vessels authorizing the use of the vessels in the fisheries. "Vessels of 5 net tons or over are prohibited from engaging in the fisheries unless so documented by R. S. 4311 (46 U. S. C., sec. 251) and by section 4.96 of the Customs Regulations of 1943. Vessels of less than 5 net tons are also prohibited from engaging in the fisheries by the same statute and regulation unless owned in the United States. "In order for a vessel to be documented with the right to engage in the fisheries, it must have been built in the United States and must be wholly owned by citizens of the United States. Foreign-built vessels of 5 net tons or over are prohibited by R. S. 4132, as amended (46 U. S. C., sec. 11), from engaging in the fisheries even when owned by citizens of the United States and documented. "The Bureau is not informed of any regulation or order of any other agency or department of the Federal Government which affects the administration of the functions transferred to the Bureau from the Bureau of Marine Inspection and Navigation or to the Secretary of Commerce. "Section 309 (a) of the Tariff Act of 1930, as amended by section 5 of the Customs Administrative Act of 1938 (19 U. S. C., sec. 1309 (a)), provides that articles of foreign or domestic manufacture or production may, under such regulations as the Secretary of the Treasury may prescribe, be withdrawn from bonded warehouses, bonded manufacturing warehouses, or continuous customs custody elsewhere than in a bonded warehouse free of duty or internal-revenue tax for supplies (not including equipment) of vessels employed in the fisheries or in the whaling business. "The regulations issued in pursuance of this statute provide, briefly, that a bond shall be given against which the duty upon such supplies may be charged (sec. 10.60, Customs Regulations of 1943). Under section 10.64 (a), Customs Regulations of 1943, the charge against this bond may be canceled upon the production, within 6 months after the date of withdrawal or such further period as may be granted, of an affidavit of the master or other officer of the vessel having knowledge of the facts that the supplies were used on board the vessel, and that no part was landed in the United States unless after identification and under proper permit and customs supervision. "Under section 3451 of the Internal Revenue Code, articles sold for use as vessels' supplies, ships' stores, or stores or legitimate equipment of vessels employed in the fisheries or in the whaling business may be withdrawn from continuous customs custody without payment of the import taxes imposed under chapter 29 of the Internal Revenue Code. "Under 21 U. S. C., sec. 381 (a) (sec. 801 of the Federal Food, Drug, and Cosmetic Act), the Secretary of the Treasury is required to deliver to the Federal Security Administrator upon his request samples of food, including fish, which are being imported, or offered for import, into the United States. If the Administrator refuses admission to the food product, the Secretary of the Treasury is directed by 21 U. S. C., sec. 381 (b) to cause the destruction of the merchandise unless it is exported within 3 months from the date of refusal of admission. The Secretary of the Treasury may, however, deliver the goods to the consignee pending examination and decision upon the giving of a bond for the payment of liquidated damages for failure to redeliver the goods upon demand. |