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 :) Hon. HERBERT C. BONNER, WASHINGTON, D.C., July 9, 1963. Chairman, House Merchant Marine and Fisheries Committee, House of Representatives, Washington, D.C.: 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. Hon. HERBERT C. BONNER, SHIPBUILDERS COUNCIL OF AMERICA, PHILADELPHIA, PA., July 9, 1963. Chairman, Committee on Merchant Marine and Fisheries, U.S. House of Representatives, Washington, D.C.: The undersigned as independent owner and operator of a large fleet of 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 BEFORE THE SUBCOMMITTEE ON MERCHANT MARINE OF THE COMMITTEE ON MERCHANT MARINE AND FISHERIES EIGHTY-EIGHTH CONGRESS 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 CONSTRUCTION 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 21-512 JULY 10, 11, AND 16, 1963 Serial No. 88-5 Printed for the use of the U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1963 COMMITTEE ON MERCHANT MARINE AND FISHERIES HERBERT C. BONNER, North Carolina, Chairman EDWARD A. GARMATZ, Maryland Missouri T. A. THOMPSON, Louisiana FRANK M. CLARK, Pennsylvania L. MENDEL RIVERS, South Carolina JAMES A. BYRNE, Pennsylvania PAUL G. ROGERS, Florida FRANK A. STUBBLEFIELD, Kentucky THOR C. TOLLEFSON, Washington 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 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. Comparative print of H.R. 83, with amendments__ Communications submitted by Alvin Shapiro, the American Merchant 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) 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__ Anderson, C. Stewart, vice president and director, Johnson & Higgins, Shapiro, Alvin, American Merchant Marine Institute, Inc., letter H.R. 82 and H.R. 3117 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- General Accounting Office.... Navy Department_- Statement of Page 83 83 99 84 86 87 89 89 Ables, Robert J., General Counsel Maritime Administration_. 99 Ewers, Ira L., counsel for Vessel Replacement Committee of Commit- Additional information submitted by- Comparative text showing the changes the proposed substitute Ewers, Ira L. Comparative text of S. 1263_ Information concerning American Export Lines, Inc. Letter from the Office of the Secretary, Department of Com merce_ Communications submitted to the committee by Alvin Shapiro, American Hearing held July 16, 1963 111 Treasury Department. Text of H.R. 6813.. Report of Commerce Department. General Accounting Office- Statement of Ables, Robert J., General Counsel, Maritime Administration__. Alexander, Hon. Donald W., Administrator, Maritime Administration_... 111 112 114 115 115 115 115 Brinson, Noah M., vice president, American President Lines, Ltd., 124 124 Pessel, A. J., vice president, Matson Navigation Co----Additional information submitted by 133 Pessel, A. J. Comparative computation of section 506, refund of construction- Memorandum of Matson Navigation Co.. Communications submitted to the committee by Alvin Shapiro, American 135 135 151 |