This letter is from Farrell Lines and is signed by the vice president, John C. Gorman. The letter is dated December 18 and is addressed to Mr. Goodman. We believe that your proposed draft advising of the procedures to be followed meets the situation. We concur. The next letter is from Mr. Joseph G. Barkan of the Prudential Lines. The letter is dated December and is addressed to Mr. Good man. Mr. Barkan stated: We are of the opinion that the proposed system outlined in your attachment clearly sets forth the procedures to be followed. Those, ladies and gentlemen, are the responses that we received generally from representatives of shipping companies and shipping associations. We also received some responses and reaction from grain exporters. I will summarize all of these by simply saying that the grain exporters as a group did not have any specific suggestions to make about the procedures. They did point out, however, that the specific requirement was going to make it difficult for them to negotiate sales and there are these few specific suggestions. From Drayfus Co., the 30-day provision subject to different interpretations, they suggest we clarify that. They say the procedures may be workable provided guidelines include ceilings on demurrage rates. From Cargill: We believe the rules are workable if certain points are clarified or stipuated, including limitation, ship availability 45 to 50 days after solicitation. That is within a specified period of time and Cargill suggested 45 days as the very maximum. It is rather strange that we have a grain exporter apparently "in collusion" with the shipping industry. STATEMENT OF EARL SHEPARD, VICE PRESIDENT, ATLANTIC COAST, SEAFARERS INTERNATIONAL UNION Mr. SHEPARD. For clarification would you let us know-we came in a little bit late-would you tell us what these communications are about and the date they stem from? Mr. GILES. I am citing responses to our notice to the proposed waiver of procedure. All these communications were received in December. Mr. SHEPARD. These are all dated in December? Mr. GILES. That is right. Mr. SHEPARD. These are in response to a proposed notice you made? Mr. GILES. Yes, in December. Mr. SHEPARD. What date was that? Mr. GILES. I am sorry, we have got to move along. We will clarify this before you leave. Mr. Tennant will you be available to assist him in clarification on this? I am simply putting out our waiver procedure in December it was adopted officially-I am simply putting this forward to answer some questions we have about our waiver procedure. Mr. SHEPARD. You answered the question. It was December 7, I believe? Mr. GILES. It was December 11. All right, Continental Grain Co. made no specific suggestions on waiver procedure. They did make some comments on the require ments about the 50 percent U.S.-flag shipment as being an obstacle in trying to make sales. It was against that background, gentlemen, on January 7 that we issued our final notice of procedure. I believe that is now in the record. The only substantial sale, the only sale to the Soviet Union in which this agency has been involved has been the sale of the Continental Grain Co. You are familiar with that, the amount of the sale and the developments for the past month or month and a half. We had a great deal of discussion about various points. Initially we put out only our waiver of procedure and then we put out our guideline rates, per ton rates. We did not specify any terms or conditions that enter in a charter such as, insurance, loading and unloading, overtime and all the many points that could come up. We suggested both to exporters and shipowners that as those matters came up, we hoped they would be able to resolve them between themselves and we would not have to pass on those points, at least no more than absolutely necessary. By January 17 there were many items in controversy between Continental Grain Co. and shipowners. On that date we published terms and conditions for tender for solicitation of U.S.-flag vessels for shipping wheat as related to the Continental shipments. That is generally known and has been made available to the press and shipowners previously. I would like to put that in the record because it is involved in this specific case. Charterers will entertain offers at rates not in excess of those published by Marad for vessels in the 15,600 to 30,000 DWT for cargo class. Vessels not exceeding 32 foot draft on arrival are preferred; but appropriate consideration will be given to larger vessels and vessels exceeding 32 foot draft. The terms and conditions applicable thereto are attached. Commodity: Wheat in bulk. Loading port: One/two safe berths, one safe port U.S. gulf; charterers' option one/two safe berths, one safe port United States north of Hatteras, Albany and New York excluded. Discharging port/s: One, option two safe U.S.S.R. Black Sea ports (Odessa/ Iljichevsk counting as one port). Rate of loading: 6 WWSHEX NORPAC-5 WWSHEX US GULF/USNH, unless used and if used actual time to count. Rate of discharge: Receivers to discharge cargo at the average rate of 2,000 metric tons per weather working day of 24 consecutive hours, with Sundays, official and local holidays and Saturday afternoons (unless Saturday already a holiday, in which case entire day not to count) excepted, whether used or not but actual time used to count provided vessel can deliver at such rate. Demurrage/despatch: $1,500/$750 loading port; $2,500/$1,250 discharging port. Charterers to pay demurrage and collect despatch at loading port; at port/s of discharge receivers to pay demurrage and collect despatch. Freight payment: Freight fully prepaid and payable in New York within 7 days after release of original onboard bills of lading to charterers in New York. Other conditions: Shifting time between berths at loading port counting as laytime but all expenses to be for owners' account. Tendering: Regular Baltimore form C tender clause. Agents: Owners to appoint and pay agents at loading port; receivers' agents to be employed at discharging port/s. Stevedores: Owners to employ charterers' stevedores at loading port at not exceeding current rates. Receivers' stevedores to be employed at discharging port/s. Cargo to be discharged free of expense to the vessel. If two discharging ports used, charterers to pay not exceeding 50 cents per ton of 2,240 pounds, extra on entire cargo and second discharge port option one or two safe berths, also required. Loading range declarable by charterers on passing Malta westbound for any vessels coming from the Mediterranean. Otherwise loading range declarable 48 hours after passing lands' end. Loading port declarable 5 days prior to vessel's expected readiness at loading port. If two discharging ports used, vessel to be left in seaworthy trim to master's satisfaction to safely shift between discharging ports. At discharge port time counting from 1 p.m. if notice of readiness to discharge is given before noon and at 8 a.m. next working day if notice given during office hours after noon, whether in berth or not. In discharge, days before Sundays and holidays to count as three-quarters of a day. Also on Mondays and days after holidays time not to count until 8 a.m. unless used, but if used actual time used to count as laytime. If, owing to congestion, no berth is available at time of vessel's arrival at or off the port of destination, whether in free pratique or not, time to commence to count from 1,300 hours if notice of arrival is given at or before noon of the same day and from 8 a.m. of the following day if notice given after noon, but Sundays, official and local holidays and Saturday, and time until 8 a.m. on Mondays and days following a holiday, not to count unless vessel is on demurrage and time from declaration by receivers that the berth is available until vessel's arrival in the berth not to count. If two discharge ports are used, time at second port of discharge to commence next working period after arrival, whether in berth or not. At each port of discharge, vessel to proceed at her own expense and at her time to one or two berths at receivers' option, time used in shifting to count as laytime. Lighterage and/or lightening, if any at port or ports of discharge, to be for receivers' risk and expense and time used to count as laytime. Fitting, loading, and trimming for account of the vessel. Any bags and/or bagging required for safe stowage is for account of the vessel. Time used in bagging not to count as laytime. Opening of bags at port of discharge shall be for account of the vessel and time used not to count as laytime. Deep tanks: Wheat may only be loaded in deep tanks provided same clean and passed and freely accessible for grab discharge. Vessel to furnish free of risk and expense to the receivers, winches, gins, falls, and slings at all hatches, as on board, and power at any times when required. Vessel is to supply sufficient lights for nightwork on deck and in the holds if required. Any time lost through breakdown of winches not to count as laytime. Initial opening and final closing of hatches at loading and discharging port is for account of the vessel. Overtime is for account of party ordering same. Officers' and crew overtime always for account of the vessel. At discharging ports any assessments, including dues and taxes, against the cargo shall not be for account of the vessel. The dismantling of grain fittings for the safe and proper discharge of the cargo to be for account of the vessel, also reerection of the fittings if required by vessel, to be for vessel's account. Any tankers employed shall guarantee to be able to discharge at not less than 1,500 metric tons at Black Sea ports and not less than 1,000 metric tons at Nakhodka with own equipment. Vessel to be responsible for the maintenance and operation of vac-u-vators and pipes in position. All shore labor to be for receiver's account. Receivers, however, shall be required to accept delivery in excess of the above daily amount without their consent. All customary loading and discharging tanker terms are to be considered contained herein, including contamination clauses if previous voyage oil. Documentation: Separate instructions to be issued by charterers regarding necessary manifests, bills of lading, etc. Necessary wireless clauses to be separately advised owners of any vessels chartered. Any extra insurance on cargo owing to vessel's age, flag, or ownership to be for account of owners and deductible from freight. The following protective clauses to apply: Gencon ice clause (port of discharge); amended "Centrocon" strike clause; Chamber of Shipping war-risk clauses Nos. 1 and 2; P. & I. banker clause; New York Produce Exchange arbitration clause; U.S.A. clause paramount; general average settlement in New York and in accordance with York-Antwerp rules, 1950. Brokerage: 14 percent to exporter's broker, if used; 14 percent to owner's broker, if used. Any conditions not specifically referred to herein are otherwise to be in accordance with the Baltimore form C charter party. All offers must be submitted in writing, either by letter, telegram, or teletype. Offers are to be made to: Charterers reserve the right to reject any offers received within the prescribed time and not made in writing as above. Before publishing that we had various conferences and several conferences with both shipowners and their representatives, also Continental Grain Co. representatives, and we took into account what they had to say on many matters. We did not agree entirely with either Continental Grain Co. or the shipowners. I think we have had a full explanation of these terms, and conditions in our appearance before Mr. Bonner, last week. On last Thursday, 1 week from today, we received in our office on Thursday afternoon, an application from Continental Grain Co. for a waiver on 281,000 long tons. We could not, of course, make a decision that day as to whether the application was in order and whether we should post a notice. We did, however, review all the files we had, all the information we had and it appeared to us that the application was in sufficient order for us to proceed to process it. Accordingly, on last Friday we issued a notice of this waiver application following our published procedure. That is the same procedure concerning which we have just put into the records these many laudatory comments for which I was and still am very grateful. But in accordance with that procedure, we published this notice under which the Maritime Administration would, in effect, solicit for another 5 days. Incidentally, Continental Grain Co. had solicited their own requirements before applying for a waiver considerably more than the 5 days specified in our published procedures. We had some difficulties about their precise terms and conditions, but I think we were pretty well straightened away on that by January 17. I mention that date as also being the date on which Continental Grain Co. put out a revised tender complying with the terms and conditions on which we had passed some judgment. This notice went out last Friday. We posted in accordance with our procedures, and asked that we hear from shipowners by the close of business Wednesday or by 5 p.m., that was yesterday. As I stated, when Continental Grain Co. filed their application they showed they had obtained a total of 213,000 long tons covered by American shipping. They applied for a waiver for 281,000 long tons. Our situation is now this: After the close of business last evening, and after we had worked several hours again into the evening as we have been doing for some weeks, we came to the conclusion and, I believe, there is no difference of view with Continental Grain Co. that there is available an additional 98,900 tons of American-flag shipping making a total at this point of 311,900 long tons. That is now booked. I will now read the ships and the tonnage. At the time of the application, the following named ships were booked, or rather the following ships and companies: Niagara, 16,000 tons. American Export Lines (three parcels), that is a total of 15,500 long tons. The Chilore for 22,000 long tons. The Columbia for 21,000. The Ocean Ulla for 30,000. The Washington Trader, 15,500. That brings us to a total of 213,000. The fixtures made after January 31, from the Pacific Northwest to Nakkodka, none. U.S. Gulf/Black Sea; U.S. Gulf to the North Atlantic to the Black Sea, these are the ones fixed within the last 5 days. The Ocean Anna, 29,000. Trans-Orleans, 15,706. Thanserie, 15,700. Smith Builder, 10,000. This gives us a total of 98,900, and a grand total fixed, 311,900. Today, this morning, we have in issue the following ships and indicated tonnage. That is to say, the owners have offered these ships and they have not been accepted by Continental. We have the claim or the position of the owner that these ships should be accepted and the position of Continental Grain Co. that they should not. During the next several minutes, or however long it might take, I want to take up each of these offers from shipowners and I would like to hear from both Continental Grain Co. and the shipowners as we proceed to them. If you gentlemen don't mind, we would like for this table over here to be available to the shipowners and this one over here for the representatives of the Continental Grain Co. so the recorder will not have difficulty hearing what is said. The following is the tonnage which we specifically want to deal with this morning. Our purpose is to get the facts. We want to hear what each side has to say, get the point, and, if it is such that we can do so, I am going to indicate my tentative conclusion, after we hear from each one, as to whether the ship should have been accepted. The ships are the Elemir, 15,700. The Marine, 15,700. Those are the two tankers. One is by Oceanic Petroleum Carriers, and the other by U.S. Shipping Corp. |