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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

GÉORGE A. GOODLING, Pennsylvania I. 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, Chief 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

EXCLUDE LUMBER TARIFF FILING REQUIREMENTS

THURSDAY, JUNE 27, 1963

HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE ON MERCHANT MARINE OF THE
MERCHANT MARINE AND FISHERIES COMMITTEE,

Washington, D.C. The subcommittee met at 10 a.m., pursuant to call, in room 219, Cannon House Office Building, Hon. Herbert C. Bonner (chairman of the subcommittee) presiding.

The CHAIRMAN. The subcommittee will come to order. The subcommittee meets this morning for the consideration of H.R. 1157, a bill to exclude cargo which is lumber from certain tariff filing requirements under the Shipping Act of 1916, introduced by Mr. Tollefson.

Mr. TOLLEFSON. Mr. Chairman, may I say that my colleague, Mrs. Hansen, has introduced H.R. 2593, an identical bill and also Mr. Horan has introduced H.R. 3691 an identical bill. I think the record should show this. (H.R. 1157, H.R. 2593, H.R. 3691, and agency reports follow :)

(H.R. 1157, H.R. 2593, H.R. 3691, 88th Cong., 1st sess. ] 4 BILL To exclude cargo which is lumber from certain tariff filing requirements under

the Shipping Act, 1916 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 18(b) (1) of the Shipping Act, 1916 (46 U.S.C. 817 (b) (1)), is amended by striking out the period at the end thereof and inserting in lieu thereof a comma and the following: “or to cargo which is lumber. As used in this paragraph, the term 'lumber' means Humber not further manufactured than passing lengthwise through a standard planing machine and crosscut to length, logs, poles, piling, and ties, including such articles preservatively treated, or bored, or framed, but not including plywood or finished articles knocked down or set up."

DEPARTMENT OF AGRICULTURE,

Washington, D.C., June 3, 1963. Hon. HERBERT C. BONNER, Chairman, Committee on Merchant Marine and Fisheries, House of Representatives.

DEAR MR. CHAIRMAN : This is in reply to your request of February 14, 1963, for comments on H.R. 1157, a bill to exclude cargo which is lumber from certain tariff filing requirements under the Shipping Act, 1916.

As we interpret it this bill would exempt lumber as defined therein from the provisions of the act as amended in 1961 relating to the filing of rates with the Federal Maritime Commission.

The Department has no objection to passage of this bill. Cargo which is carried in bulk without mark or count is now exempt from the tariff filing requirements. As we understand it, lumber, as defined in the bill, will be carried without mark or connt. Therefore, we believe it should be given exemptions consistent with those enjoyel by other commodities.

The Bureau of the Budget advises that there is no objection to the presentation of this report from the standpoint of the administration's program. Sincerely yours,

ORVILLE L. FREEMAN, Secretary.

GENERAL COUNCIL OF THE DEPARTMENT OF COMMERCE,

Washington, D.C., April 3, 1969. Hon. HERBERT C. BONNER, Chairman, Committee on Merchant Marine and Fisheries, House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: This is in further reply to your request for the views of this Department with respect to H.R. 1157, a bill to exclude cargo which is lumber from certain tariff filing requirements under the Shipping Act, 1916.

The bill would amend section 18(b) (1) of the Shipping Act, 1916, to exempt lumber from the requirement of that section that rates and charges for transportation in both directions between U.S. ports and foreign ports be filed with the Federal Maritime Commission and that increases in such rates and charges shall not become effective until 30 days after the filing of the increased rates and charges. At present these filing requirements apply to all cargo except cargo loaded and carried in bulk without mark or count.

It is our understanding that shippers of lumber believe that enactment of this legislation will permit them to secure rates for the transportation of lumber ir foreign trade that are more competitive with those paid by foreign producers. A present the shippers argue that carriers are reluctant to negotiate spot-rate reductions with them because such spot rates cannot thereafter be increased upward until the increased rate has been on file for at least 30 days. We under stand also that the shipping industry has no objection to enactment of the legislation.

The Department therefore supports enactment of H.R. 1157.

The Bureau of the Budget has advised that there would be no objection to th submission of this report from the standpoint of the administration's program. Sincerely,

ROBERT E. GILES.

FEDERAL MARITIME COMMISSION,

Washington, D.C., April 11, 1963. Hon. HERBERT C. BONNER, Chairman, Committee on Merchant Marine and Fisheries, House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: This will acknowledge receipt of your letter of Febru ary 14, 1963, requesting the views of the Federal Maritime Commission wit respect to H.R. 1157, a bill to exclude cargo which is lumber from certain taril filing requirements under the Shipping Act, 1916.

Section 18(b) (1) of the Shipping Act, 1916, requires that every commo carrier in the foreign commerce and conference of such carriers file with th Commission tariffs showing their rates and charges. Section 18 also provide that decreases in rates are effective upon filing but that increases may be mad only upon 30-day filing, unless permission is granted by the Commission to fil on shorter notice.

The bill H.R. 1157 would exempt lumber as defined therein from the filin requirement of section 18(b) (1) of the Shipping Act, 1916. Lumber is defined a "lumber not further manufactured than passing lengthwise through a standar planing machine and crosscut to length, logs, poles, piling, and ties, includin such articles preservatively treated, or bored, or framed, but not includin plywood or finished articles knocked down or set up." It may be noted that th filing requirements of section 18(b) (1) are not applicable to cargo loaded an carried in bulk without mark or count.

It is our understanding that some lumber shippers and some of the U.S. wei coast steamship conferences believe that such revisions would make them bette able to compete with Canadian west coast lumber shippers. They point out the lumber from the Canadian Northwest is carried by unregulated carriers, an that the tariff filing requirements of section 18(b) (1) interfere with the abilit

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