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Mr. DREWRY. Just this one ?

Mr. SMITH. I say that a jumboized vessel is a much better vessel if it has a completely new forward section and when you take two older vessels and cut them up and take some of each out, I think it is obvious to anyone that new construction would be a better job. Mr. DREWRY. That is all, Mr. Chairman.

The CHAIRMAN. I would like to place a telegram in the record from Mr. Hood, of the Shipbuilders Council of America, and another from the Keystone Shipping Co.

The committee will stand adjourned. (The telegrams follow :)

WASHINGTON, D.O., July 9, 1963. Hon. HERBERT C. BONNER, Chairman, House Merchant Marine and Fisheries Committee, House of Repre

sentatives, Washington, D.O.: We oppose H.R. 2457 on grounds that U.S. registry of SS Spitfire can only have net effect of discouraging U.S. shipbuilding and ship conversion and could establish pattern for admission of other vessels in like situation to further detriment of U.S. shipyard industry.

SHIPBUILDERS COUNCIL OF AMERICA,
EDWIN M. HOOD, President.

PHILADELPHIA, PA., July 9, 1963. Hon. HERBERT C. BONNER, Chairman, Committee on Merchant Marine and Fisheries, U.S. House of Repre

sentatives, Washington, D.C.: The undersigned as independent owner and operator of a large fleet or U.S. flag tankers protests the principle of H.R. 2457 and opposes its passage because, first, employment for present U.S. flagships is insufficient and the 50-50 provision of the Cargo Preference Act is one of few remaining sources of employment. Second, although not profitable such employment makes it possible to continue operation and avoids discharge of trained crews. Third, so long as the possibility of special exceptions of this kind exists it is unlikely that tanker companies will plan replacement at high cost in U.S. shipyards. Fourth, we understand Spitfire owner gambled economy against prompt construction and lost. Fifth, this is special legislation for the benefit of a single owner which always sets a bad precedent. If one owner is entitled to build abroad all owners should be given the same privilege. Request that the foregoing be included in record of hearings.

KEYSTONE SHIPPING CO. (Whereupon, at 12:15 p.m., the subcommittee adjourned, subject to the call of the Chair.)

UVa Law Library

3 5007 00486592 3

THE SUBSIDIZED LINES

HEARINGS SUBCOMMITTEE ON MERCHANT MARINE

BEFORE THE

OF THE

COMMITTEE ON MERCHANT MARINE AND FISHERIES HOUSE OF REPRESENTATIVES EIGHTY-EIGHTH CONGRESS

FIRST SESSION

ON

H.R. 83 A BILL TO AMEND SECTION 802 OF THE MERCHANT MARINE ACT, 1936, AS AMENDED, TO PROVIDE THAT OWNERS OF VESSELS REQUISITIONED BY THE UNITED STATES SHALL BE ACCORDED PREFERENCE TOWARD REACQUIRING THESE VESSELS WHEN THEY CAN BE RELEASED BY THE GOVERNMENT, AND FOR OTHER PURPOSES

H.R. 6814 A BILL TO AMEND TITLE 12 OF THE MERCHANT MARINE ACT, 1936, IN ORDER TO REMOVE CERTAIN LIMITATIONS WITH RESPECT TO WAR RISK INSURANCE ISSUED UNDER THE PROVISIONS OF SUCH

TITLE

H.R. 82, H.R. 3117 BILLS TO AMEND THE MERCHANT MARINE ACT, 1936, IN ORDER TO PROVIDE FOR THE REIMBURSEMENT OF CERTAIN VESSEL CON

STRUCTION EXPENSES

H.R. 6813 A BILL TO AMEND PUBLIC LAW 86-518 AND SECTION 506 OF THE MERCHANT MARINE ACT, 1936, TO AUTHORIZE THE AMENDMENT OF CONTRACTS BETWEEN SHIPOWNERS AND THE UNITED STATES DEALING WITH VESSELS WHOSE LIFE HAS BEEN EXTENDED BY

PUBLIC LAW 86–518

JULY 10, 11, AND 16, 1963

Serial No. 88_5

Printed for the use of the Committee on Merchant Marine and Fisheries

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1963

21-512

COMMITTEE ON MERCHANT MARINE AND FISHERIES

HERBERT C. BONNER, North Carolina, Chairman EDWARD A. GARMATZ, Maryland

THOR C. TOLLEFSON, Washington LEONOR K. (MRS. JOHN B.) SULLIVAN, WILLIAM K, VAN PELT, Wisconsin Missouri

WILLIAM S. MAILLIARD, California T. A. THOMPSON, Louisiana

THOMAS M. PELLY, Washington FRANK M. CLARK, Pennsylvania

MILTON W. GLENN, New Jersey THOMAS L. ASHLEY, Ohio

ROBERT F. ELLSWORTH, Kansas JOHN D. DINGELL, Michigan

GEORGE A. GOODLING, Pennsylvania L. MENDEL RIVERS, South Carolina STANLEY R. TUPPER, Maine ALTON LENNON, North Carolina

CHARLES A. MOSHER, Ohio THOMAS N. DOWNING, Virginia

JAMES R. GROVER, JR., New York BOB CASEY, Texas

ROGERS C. B. MORTON, Maryland JAMES A. BYRNE, Pennsylvania,

HASTINGS KEITH, Massachusetts
CHARLES A. VANIK, Ohio
HARLAN HAGEN, California
EDITH GREEN, Oregon
PAUL G. ROGERS, Florida
FRANK A, STUBBLEFIELD, Kentucky
JOHN M. MURPHY, New York
JACOB H. GILBERT, New York

John M. DREWRY, Ohief Counsel
• BERNARD J. ZINCKE, Counsel
NED P. EVERETT, Assistant Counsel
WILLIAM B. WINFIELD, Chief Clerk

PAUL S. BAUER, Consultant

SUBCOMMITTEE ON MERCHANT MARINE

HERBERT C. BONNER, North Carolina, Chairman THOMAS L. ASHLEY, Ohio

THOR C. TOLLEFSON, Washington THOMAS N. DOWNING, Virginia

WILLIAM K. VAN PELT, Wisconsin BOB CASEY, Texas

WILLIAM S. MAILLIARD, California HARLAN HAGEN, California

THOMAS M. PELLY, Washington
PAUL G. ROGERS, Florida

MILTON W. GLENN, New Jersey
FRANK A. STUBBLEFIELD, Kentucky
JOHN M. MURPHY, New York

II

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Hearing held July 10, 1963.-.
Text of H.R. 83.-
Report of -

Commerce Department -

General Accounting Office..
Statement of-

Alexander, Hon. Donald W., Maritime Administrator, on behalf of the

Maritime Administration and the Department of Commerce -----
Ewers, Ira L., counsel, Vessel Replacement Committee of Committee

of American Steamship Lines ---
Nemec, Frank A., executive vice president, Lykes Bros. Steamship

Co., on behalf of the Committee of American Steamship Lines ------

Purdon, Alexander, executive vice president, United States Lines ----
Additional information submitted by-
Nemec, Frank A.-
Amendments to H.R. 83.------

** D ------------------------------------
Comparative print of H.R. 83, with amendments..
Communications submitted by Alvin Shapiro, the American Merchant
Marine Institute, Inc., letter dated July 10, 1963.------

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VOII------------------------

H.R. 6814
Hearing held July 11, 1963..
Text of H.R. 6814.------
Report of -
Commerce Department ------

Comparative text showing changes proposed substitute text for

H.R. 6814 would make in the first proviso in the first sentence
and the first proviso in the second sentence of section 1209(a) (2)

of the Merchant Marine Act, 1936, as amended.---.

Proposed substitute text for H.R. 6814.--
General Accounting Office.------------------------
Statement of -

Alexander, Hon. Donald W., Administrator, Maritime Administra-

tion.---
Andrews, Graydon L., Deputy General Counsel, Maritime Adminis-

tration.------------ -- : :- Iniclat
Burchill, William R., Chief, Division of Legislation, Maritime Ad-

ministration.-----
Ewers, Ira L., counsel, Vessel Replacement Committee of the Com-

mittee of American Steamsip Lines
Lane, William H., Chief, Division of Insurance, Maritime Adminis-

tration.-.-
Nemec, Frank A., vice chairman, Vessel Replacement Committee of

the Committee of American Steamship Lines ----
Purdon, Alexander, chairman, Vessel Replacement Committee of the

Committee of American Steamship Lines---
Statement submitted by the American Institute of Maine Underwriters..
Communications submitted by-
Anderson, C. Stewart, vice president and director, Johnson & Higgins,

letter dated July 8, 1963, enclosing letter from C. R. Fullenkamp,

Insurance Division, Department of Commerce, dated June 14, 1963.
Cornwell, C. G., manager, American Hull Insurance Syndicate, letter

dated July 10, 1963..---
Shapiro, Alvin, American Merchant Marine Institute, Inc., letter

dated July 10, 1963..-----

H.R. 82 and H.R. 3117

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Hearing held July 16, 1963.
Text of H.R. 82 and H.R. 3117--.
Report of-
Commerce Department ---

Substitute text for H.R. 82, recommended by the Maritime Ad

ministration and the Department of CommerceGeneral Accounting Office--------

Navy Department.----
Statement of

Ables, Robert J., General Counsel Maritime Administration.--.
Alexander, Hon. Donald W., Administrator, Maritime Administration.
Brinson, Noah M., vice president, American President Lines, Ltd.--.
Bull, W. Lyle, American Export Lines ------
Ewers, Ira L., counsel for Vessel Replacement Committee of Commit-

tee of American Steamship Lines --------
Additional information submitted by-
Alexander, Hon. Donald W.-

Comparative text showing the changes the proposed substitute

text would make in H.R. 82....
Ewers, Ira L.-

Comparative text of S. 1263------------
Information concerning American Export Lines, Inc.-----
Information concerning Moore-McCormack Lines, Inc.--
Letter from the Office of the Secretary, Department of Com-
merce--------

--Communications submitted to the committee by Alvin Shapiro, American Merchant Marine Institute, Inc., dated July 16, 1963

H.R. 6813
Hearing held July 16, 1963...
Text of H.R. 6813...
Report of -

Commerce Department..
General Accounting Office
Navy Department -----

Treasury Department --
Statement of -

Ables, Robert J., General Counsel, Maritime Administration.
Alexander, Hon. Donald W., Administrator, Maritime Administra-
Brinson, Noah M., vice president, American President Lines, Ltd.,

representing the Committee of American Steamship Lines
Ewers, Ira L., counsel for Vessel Replacement Committee of Com-

mittee of American Steamship Lines..

Pessel, A. J., vice president, Matson Navigation Co----
Additional information submitted by-
Pessel, A. J.-

Comparative computation of section 506, refund of construction

differential subsidy assuming domestic revenue at 5 percent of

total revenue, table

Memorandum of Matson Navigation Co.--
Communications submitted to the committee by Alvin Shapiro, American

Merchant Marine Institute, Inc., dated July 16, 1963---

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