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veloping their business with South America. It also has saved the importers of our sections very large amounts, especially on the importation of coffee, hides, and bulk commodities. Since the line was allocated to Boston, it has brought in an average each year of 17,562 tons from Santos; 33,422 tons from Buenos Aires; 477 tons from Rio; 5,039 tons from Montevideo, as shown on the following chart: Traffic at Boston

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The export business from New England has been built up from practically zero to Santos, Buenos Aires, Rio, and Montevideo in those 9 years to an average of 25,013 tons to Santos, 2,652 tons to Buenos Aires, 3,117 tons to Rio, and 732 tons to Montevideo.

Mr. SIROVICH. Will some of your lines stop off at the West Indies, at Havana, on the way down to South America?

Mr. DAVIS. I think, if they received the slightest encouragement from the Maritime Commission, they would do so. Certainly we would like, up in New England, to have them do so. There will be no question whatever about community interest in this particular thing, and I understood from Mr. Schell that was the controlling factor. Well, as evidence of that, I will say Senator Walsh has introduced in the Senate a bill identical with the bill before you, and he will join with you in endeavoring to secure the enactment of that legislation. I think I may safely say that the entire New England delegation in Washington, Senators and Congressmen, will be behind this legislation.

Mr. SIROVICH. Republicans, too.

Mr. DAVIS. All hands.

Now, gentlemen, it seems to me questionable wisdom to press this thing. Why the need of this speed It is opening the door wide to disrupt this splendid service that has established itself so well. There is no question about the efficiency of the operation of the American Republics Line and these other lines that have served New England ports and the other ports on the Atlantic seaboard so well; but the mere announcement that they are going to be disrupted is rapidly causing foreign lines to enter the field. I want to insert in the record this advertisement of a Swedish line which appeared in

the New York Journal of Commerce of January 26, 1937, saying it is the intention of that line to match the service of the American Republics Line.

Mr. SIROVICH. Are those the tramp lines to Sweden

Mr. DAVIS. I think it is; I am not sure.

The CHAIRMAN. There is no doubt about the fact that the foreign lines are doing everything they can to get the business, on account of the condition of American shipping. Is not that a fact

Mr. DAVIS. That is a fact. So I want to record the New England business organizations as being desirous of having this legislation enacted, in order that the entire problem may receive more mature and businesslike consideration than is possible, or than is necessary, in forcing this charter on these lines at this time, on such short notice.

I thank you.

(The clipping above referred to is as follows:)

[From the Journal of Commerce, Jan. 26, 1937]

START NEW SHIP SERVICE TO RIVER PLATE PORTS

Eckert & Stockard, Inc., announce the inauguration of a new, regular line steamship service from New York to east coast South American ports, particularly Montevideo, Buenos Aires, and Rosario. The new line, operating under the trade name of Essco Lines (River Plate Service), will have for its first sailing the motorship Tonsbergfjord, leaving New York on March 18. The Tonsbergfjord is a new, modern cargo liner with a speed of 14 knots, and it is the company's intention to employ another vessel of similar type and speed to maintain a monthly service.

The service will be increased as conditions in the trade warrant and extended to include Brazil ports at a later date. The general agents for the new line in Buenos Aires are the Sociedad Anonima Importadors y Exportadora de la Patagonia (Patagonian Steamship Co.), one of the largest and best known firms in Buenos Aires, and who, in addition to their other activities, are ship owners, maintaining their own line service between Buenos Aires and the south coast of Argentina.

When asked to state whether or not the new line would operate as a conference or a nonconference line, Mr. Stockard stated that he preferred to make no comment at this time.

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STATEMENT OF WALTER P. HEDDEN, CHIEF, BUREAU OF COMMERCE, THE PORT OF NEW YORK AUTHORITY

Mr. HEDDEN. My name is Walter P. Hedden. I represent the Port of New York Authority. The Port of New York Authority is a public agency, an instrumentality of the States of New York and New Jersey, created in 1921 with the approval of Congress for the purpose of developing, improving, and protecting the port of New York. We are not interested in the fortunes of any particular ship operator; but we are very much interested in the preservation of essential American-flag shipping routes.

The America-France Line has maintained an American-flag service between the port of New York and other North Atlantic ports to the four most important French ports, Havre, Bordeaux, Dunkirk, and St. Nazaire, for a great many years. We regard this as a very essential trade route. The Shipping Board statistics of 1930 showed that 588,000 tons of cargo were handled between these North Atlantic

United States ports and the four French ports that I have mentioned. Of that amount, 375,000 or a great deal more than one-half, was contributed by the port of New York alone.

Mr. SIROVICH. Will you repeat that; I did not hear that.

Mr. HEDDEN. 588,000 tons between North Atlantic ports as a group and the French ports in question, of which 375,000 tons were contributed by the port of New York alone.

Then came the world-wide depression and the strangling effect of these trade barriers. Naturally the tonnage fell off and the Shipping Board figures for 1935 still showed about 425,000 tons interchange between these American ports and these French ports, of which New York contributed 275,000 tons. So we regard this as a very important trade route and one that should be maintained.

As Mr. Payne has already pointed out, the situation is improving in the interchange of commerce between France and the United States, and the American consul general in Paris stated, not long ago, that in 1936 the value of commerce would show an increase of 41 percent from the United States to France, and 17 percent from France to the United States. So that the business is improving rapidly as a result of economic recovery and the operation of the reciprocal trade agreements.

Mr. SIROVICH. In other words, after the Hawley-Smoot tariff bill was enacted, you fell down, and since the reciprocal trade agreement it has been going up?

Mr. HEDDEN. I believe that was an important contributing factor; yes.

Mr. CULKIN. Mr. Chairman, I want to reserve the right to go that in full. [Laughter.]

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The CHAIRMAN. We will deal with the facts, rather than colloquy. Mr. CULKIN. That is terrible. [Laughter.]

Mr. HEDDEN. The American-France Line service, this important trade route I have described, if I am correctly informed, and I believe Mr. Payne's figures will support it, have handled a major share of the general cargo tonnage, and if this line is to continue to serve New York and the other United States ports satisfactorily, and obtain a really large slice of this tonnage, it is essential that the operation be attractive to shippers. If the private operator is to carry on the service either by purchase or by charter, or by management for the Government, a well-conceived schedule of sailings must be worked out and applied, and we do not see how any private operator at the present time can bid until the Maritime Commission has settled certain fundamental questions-questions which have been already mentioned, but which I will briefly summarize, namely, the choice of essential routes; the elimination of competition between Americanflag Government-aided lines, and the amount of operating differentials in place of the mail subsidies and other aids which will expire. Now, because of reasons which are probably in large part beyond the control of the Maritime Commission, it has not had time to settle these fundamental questions and it is now faced

The CHAIRMAN. It has not had the entire force to settle them with, has it?

Mr. HEDDEN. No.

The CHAIRMAN. It is to have five members, and they only have three.

Mr. HEDDEN. I am not trying to allocate any reason for it. I think they have been up against a difficult situation, and it is not in criticism of them.

Now under section 704 of the 1936 act, the Commission is forced, without any discretion, to advertise bids for the charter operation of these lines, and they have to be gotten under a charter very quickly, under the ruling of the Comptroller General. The situation is so complicated, in our judgment

Mr. SIROVICH. Was this the ruling by Comptroller General McCarl? Mr. HEDDEN. Yes, sir. The situation is further complicated, in our judgment, by what we think is an ill-considered decision to merge the America-France Line with the Yankee Hampton Roads Line which serves an entirely different set of continental and United Kingdom ports from those served by the America-France Line.

Mr. SIROVICH. What ports does the Hampton Roads Line serve? Mr. HEDDEN. On this side?

Mr. SIROVICH. No; I mean on the other side.

Mr. HEDDEN. I will enumerate them. As has already been said they serve the U. K. ports of London, Hull, Leith, Dundee, and the German ports of Hamburg, with the option of stopping at Bremen. So it is an entirely different range of ports that they operate to. Now the proposed schedule of this merged operation reminds me of a world's cruise or Cook's tour. For an American exporter to use that service in competition with the direct sailings of the foreign-flag line is almost unbelievable. The ships of those merged lines would start at Baltimore, call at Hampton Roads, Philadelphia, New York, Boston, with another stop at Halifax, Nova Scotia, or St. Johns, New Brunswick, in Canadian territory.

The CHAIRMAN. You are going to serve Canada too?

Mr. HEDDEN. Yes; and then weave back and forth on the other side to Havre, Dunkirk, or Bordeaux; London, Hull, Leith, or Dundee; and finally over to Germany at Hamburg, and then all the way back again.

Mr. O'LEARY. At that point, have you the schedule of the proposed sailings under the consolidation?

Mr. HEDDEN. I have a copy which I understand was furnished as part of the specifications. for bids. It was handed to me by Mr. Payne.

Mr. O'LEARY. I have a copy here, and will you compare it and see if it is all right and read it into the record at this point, and give the number of days elapsing between boats? Just read one or two of the sailings there, to give the committee an idea of how long it would take for a ship, we will say, under this proposed charter, to from Baltimore to Dunkirk.

Mr. SIROVICH. I thought the Maritime Commission was composed of great experts who understood the merchant-marine business, instead of being there for Cook tours.

Mr. HEDDEN. I do not want to be unduly critical, but it does seem to us that this thing is ill-considered. For example, under route 1, the time from Baltimore to Dunkirk, France, will be 42 elapsed days. The CHAIRMAN. To Dunkirk, France?

Mr. HEDDEN. Yes. From Dunkirk, France, it will be 44 elapsed days.

Mr. CULKIN. That is return?

Mr. HEDDEN. No; that is east-bound, from Baltimore to Dunkirk, one way.

Mr. SIROVICH. Is that the last port of stoppage?

Mr. HEDDEN. Yes.

Mr. O'LEARY. Give it to Havre, if you will-from Baltimore to Havre.

Mr. HEDDEN. From Baltimore to Havre it will be 26 days. Now in the reverse direction, on route 2, for example, from Havre to New York, will be 32 days in transit.

Mr. SIROVICH. Almost the time that it took Columbus to discover America. [Laughter.]

Mr. HEDDEN. That is in place of the reasonably direct sailing today of the America-France Line operation. That runs in the neighborhood of 14 days. So that the time will be more than doubled under this merged sailing schedule, to try to compete for French exports to the United States.

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Mr. CULKIN. What is the comparative time of the French-flag ships?

Mr. O'LEARY. Mr. Chairman, I move that entire statement be made a part of the record.

The CHAIRMAN. Without objection, it is so ordered.

Mr. HEDDEN. I will let Mr. Payne answer that question.

Mr. PAYNE. I can answer that question. The time of the Frenchline ship ranges from 5 days to 7 days, as the maximum.

Mr. O'LEARY. And you have to charge the conference rates on a ship taking 32 days, the same as on the ship taking from 5 to 7 days; is that right?

Mr. PAYNE. Yes, sir; that is absolutely right.

Mr. HART. And you are expected to maintain the supremacy or at least the position of the American merchant marine on the high seas under those circumstances?

Mr. PAYNE. Mr. Hart, we are supposed to carry out the mandate of the act to carry a major portion of the business between the two ports.

(The statement of elapsed time to various ports submitted for the record by Mr. Payne will be found in the Appendix.)

Mr. SIROVICH. What businessman or merchant-marine man would like to send his merchandise from the United States to France when it takes 32 days one way, when he can send his stuff on the French Line in 5 to 7 days for the same rate?

Mr. PAYNE. The 32 days is even worse, because from France to America we do not see very much patriotism in our consignees' demanding shipment on American ships, and I hardly think we can hope to get that business if the time was 32 days on ships out-bound and 7 days on French ships to America.

Mr. SIROVICH. How do you account for the action of the Maritime Commission on the fusion of those two lines?

Mr. PAYNE. I do not know, sir.

Mr. CULKIN. You do not want the witness to put the Commission on the spot?

Mr. SIROVICH. The Commission has put itself on the spot.

The CHAIRMAN. I think the difficulty is that the gentleman prob

ably would not like to interpret the minds of the Commission.

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