Mr. STAKEM. At the bottom of the chart, we have the total private as against the total Government-owned in each of these. We see in 1951 and 1952 very little, just a bare shade of Government operations in the foreign trade, with none in the domestic, and the same with 1952, very little, three tankers, in the foreign trade, as against no Government operation in the domestic. Chart 20 takes the same study, active foreign and domestic trade as to the combination ships. Again the same selected years are used. Again the green represents the active freighters and the shaded black the Government-owned freighters. The numbers at the bottom indicate you have a total of 133 combination ships in 1937, as against the 55 active in 1952. Senator POTTER. That has gone down considerably. Mr. Clark, if it is convenient with you to return Monday, I think it would be best to have you complete your testimony at that time. I wish to thank you for coming today, and also for the work that I know you and your staff have put in on this. It has been a very graphic and illuminating discussion of this problem. Rather than to carry on any longer today, I think it would be better if you could come back Monday at 10 o'clock, if that is convenient for you. The committee will stand in recess until 10 o'clock Monday. (Whereupon, at 12:10 p. m., the subcommittee recessed to reconvene at 10 a. m. Monday, July 6, 1953.) MERCHANT-MARINE STUDIES MONDAY, JULY 6, 1953 UNITED STATES SENATE, SPECIAL SUBCOMMITTEE ON MARITIME SUBSIDIES OF THE Present: Senator Potter. Also present: Mr. John M. Drewry, special counsel to the subcommittee. Senator POTTER. The subcommittee will come to order. I regret, gentlemen, that I was a little delayed in getting here this morning. I do not like to be kept waiting; I am sure no one else does. I apologize for being late. Friday, Mr. Clark was giving us the benefit of his views concerning the size and composition of the merchant marine-what we have at the present time. He did not complete his testimony. So, we will continue with Mr. Clark this morning. STATEMENT OF EARL W. CLARK, DEPUTY MARITIME ADMINISTRATOR-Resumed Mr. CLARK. Mr. Chairman, I have been asked by Mr. Rothschild, the new Administrator and Chairman of the Board, to express his regrets that he could not be here today. Senator POTTER. I have not had the opportunity of meeting Mr. Rothschild. He comes to us highly recommended. I hope and am confident he will serve as chairman of the board with great distinction. Extend to him my regards, and I hope we will be able to meet in the very near future. Mr. CLARK. Thank you. I will bear that message. At the conclusion of the testimony last Friday, we had finished with certain charts having to do with the employment of the United States merchant fleet in the prewar, postwar, and the Korean emergency period. I would like to summarize for a few moments the general observations which can be drawn from the charts which were presented to the committee. The prewar period covers the era from 1937 through 1941. The average prewar fleet of 11,156,000 dead-weight tons consisted of approximately 55 percent freighters, 8 percent combination, and 37 percent tankers. During the prewar period an average of 55 percent of the total active and inactive fleet was engaged in the domestic trades. More significant yet, 64 percent of the total active fleet was employed in the domestic trades. The emphasis there is upon the active group of ships. Senator POTTER. Could I interrupt you for just a moment? What page are you on? Mr. CLARK. Page 6 of my testimony. It is at the bottom of the page, beginning with "prewar." Eighty-nine percent of this fleet was privately owned with 11 percent owned by the Government. In this connection, it should be pointed out that this 11 percent which represents an average for the period has been heavily weighted by the first 3 years, 1937, 1938, and 1939. During the years 1940 and 1941, the Government-owned tonnage had dropped to 9 and 6 percent, respectively, of the total fleet. The Government was virtually out of the shipping business during this period, and of the approximately 1,100,000 Government-owned tons, only about one-third was actively operated; the remaining tonnage was tied up in inactive status at reserve-fleet sites. By 1941, however, this tonnage had declined to only 127,000 tons by (1) virtue of withdrawals for purchase by or transfer to foreign allied governments, and (2) required tonnage needed to supplement the privately owned fleet. This was the period, Mr. Chairman, in which we were under a joint resolution of the Congress, attempting in some measure to assist in rehabilitation of certain of the foreign commercial fleets of our allies. Senator POTTER. And we were selling ships out of our reserve fleet to foreign governments? Mr. CLARK. That is correct. That sale to foreign governments was ended in 1948, that is, ended to foreign operators under foreign flags, in 1948, by congressional action. Mr. DREWRY. Before you proceed, Mr. Clark, in your opening statement you mentioned a total of the United States-flag fleet as 1,428 ships in 1937. Then you show a breakdown in the table that follows after that of the number of ships privately owned and Maritime owned at present, showing 1,259 privately owned, and 2,089 Government owned. Could you get for the record, for comparative purposes, a similar breakdown for that 1937 fleet, so that it can be compared, as directly as possible, with the postwar fleet? Mr. CLARK. Yes; we will submit that for the record, Mr. Drewry. (The material referred to is as follows:) | |