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 JOHN D. DINGELL, Michigan I. MENDEL RIVERS, South Carolina JAMES A. BYRNE, Pennsylvania PAUL G. ROGERS, Florida FRANK A. STUBBLEFIELD, Kentucky THOR C. TOLLEFSON, Washington Justice Department--- State Department. Goodman, Capt. Martin, Chief, Office of Ship Operations, Maritime Hansen, Hon. Julia Butler, a Representative in Congress from the Jobe, William T., Jr., general counsel, National Lumber Manufacturing Mason, Thomas C., Director, Forest Products Division, BDSA......... 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.] A 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 lamber 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, 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 count. Therefore, we believe it should be given exemptions consistent with those enjoye I 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, 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 transpor tation 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 in foreign trade that are more competitive with those paid by foreign producers. At 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 the submission of this report from the standpoint of the administration's program. Sincerely, ROBERT E. GILES. FEDERAL MARITIME COMMISSION, Hon. HERBERT C. BONNER, Chairman, Committee on Merchant Marine and Fisheries, DEAR MR. CHAIRMAN: This will acknowledge receipt of your letter of Febru ary 14, 1963, requesting the views of the Federal Maritime Commission with respect to H.R. 1157, a bill to exclude cargo which is lumber from certain tariff filing requirements under the Shipping Act, 1916. Section 18(b)(1) of the Shipping Act, 1916, requires that every common carrier in the foreign commerce and conference of such carriers file with the Commission tariffs showing their rates and charges. Section 18 also provides that decreases in rates are effective upon filing but that increases may be made only upon 30-day filing, unless permission is granted by the Commission to file on shorter notice. The bill H.R. 1157 would exempt lumber as defined therein from the filing requirement of section 18(b)(1) of the Shipping Act, 1916. Lumber is defined as "lumber 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." It may be noted that the filing requirements of section 18(b) (1) are not applicable to cargo loaded and carried in bulk without mark or count. It is our understanding that some lumber shippers and some of the U.S. west coast steamship conferences believe that such revisions would make them better able to compete with Canadian west coast lumber shippers. They point out that lumber from the Canadian Northwest is carried by unregulated carriers, and that the tariff filing requirements of section 18(b) (1) interfere with the ability |