STATEMENT OF RALPH B. DEWEY, PACIFIC AMERICAN STEAMSHIP ASSOCIATION This association, comprising the major shipping lines on the Pacific coast, submitted testimony at a hearing last year on S. 2818, a bill identical in its provisions to S. 743. I would like to incorporate that testimony by reference (p. 45 of the hearings on S. 2818 on March 29, 1954) and simply summarize the points raised by our association at that time, which were as follows: 1. Annual inspection of hulls and boilers is outmoded as a result of the numerous technological changes in hull and boiler design since just before the turn of the century when the present law was enacted. Furthermore, an inspection agency is now in existence and has been since 1923 (American Bureau of Shipping). 2. This legislation is sponsored by the Coast Guard whose judgment in matters of safety of life at sea is unquestioned. That agency views this slight relaxation in the inspection laws as beneficial both from their standpoint as well as that of the ship operator. Furthermore, the Coast Guard retains the right to inspect any vessel at any time should the occasion warrant. 3. The 1948 Safety of Life at Sea Convention, ratified November 19, 1952, requires, among other things, a survey only once every 24 months after the initial inspectional survey. For the reasons outlined above, and for obvious reasons of economy for the operator, we would strongly urge the passage of this legislation. Senator MAGNUSON. Mr. Williamson, vice president of the Amerisan Association of Ship Owners. Do you have a statement? STATEMENT OF HUGH S. WILLIAMSON, VICE PRESIDENT, Mr. WILLIAMSON. I would like to submit it and make it a part of the record. Senator MAGNUSON. Do you have anything else to add? Mr. WILLIAMSON. No, sir. Senator MAGNUSON. We will put your statement in the record. (The statement referred to is as follows:) STATEMENT OF HUGH S. WILLIAMSON, VICE PRESIDENT, ASSOCIATION OF AMERICAN SHIP OWNERS My name is Hugh S. Williamson. I am an attorney at law and am vice president of the Association of American Ship Owners, which has offices at 76 Beaver Street, New York, N. Y., and 1621 K Street NW, Washington, D. C. Our association is composed of a number of old and established companies operating in the rugular liner services in the foreign and domestic trades. Our association appreciates very much this opportunity to submit its views on this bill, which, if enacted, would provide for biennial instead of annual inspection of the hulls and boilers of cargo vessels. There has been no substantial change in the requirement for an annual inspection of cargo vessel hulls and equipment since 1871. At that time mechanically propelled vessels were in the development stage and we knew far less about the proper design, construction, and operation of this kind of equipment than we know today. Boiler explosions and attendant fires which were commonplace then are now virtually unknown. Today the industry can bring to bear the vast improvements in materials, design, and construction techniques to insure the seaworthiness of its vessels. Another outstanding advance has been the establishment by the industry of the American Bureau of Shipping, a nonprofit, privately financed classification society. The primary purpose of the bureau is to survey, rate, and maintain a registry of merchant vessels. It has established rules for classification and construction in order to insure the seaworthiness of all classed vessels. Owners must obtain classification in order to be accepted as good risks for vessel and cargo insurance by maritime underwriters. The bureau reviews architects' plans and the designs of manufacturers of equipment. By surveys in factories and shipyards and tests and inspection of materials and equipment it makes certain that the minimum standards established by it are observed in the construction of vessels. It makes surveys of vessels in operation to insure they are maintained in sound condition and are entitled to retain their class. Their rules require that whenever a vessel suffers substantial damage or is to be put in drydock that it be notified so that it may make a survey and inspection. The work of the bureau has been so effective that it received recognition by Congress in the Merchant Marine Act of 1920 in which it was provided that the bureau should be used for the classification of all Government-owned vessels. The United States is a party to the International Convention for Safety of Life at Sea. This agreement among the leading maritime nations specifies safety requirements to be observed by merchant vessels engaged in international Voyages. In the case of cargo vessels no provision is made for inspection of hulls and appurtenances. In respect to lifesaving and fire-extinguishing appliances, sound and distress signals, provision is made for inspection before the vessels are placed in service and biennially thereafter. Since the other leading maritime countries have classification societies similar to the American Bureau of Shipping, the convention seems to recognize that the present standards of design. construction, and maintenance of merchant vessels, 2s adopted and enforced by such societies, are a sufficient guaranty of the seaworthiness of hulls and boilers. S. 743 is similar to S. 2818 of the last Congress and in supporting S. 2818 the Coast Guard pointed out that a biennial inspection by it of the hulls and appurtenances of cargo vessels, in conjuction with the work of the Bureau of American Shipping, would be adequate protection and also noted that if the proposed legislation were enacted it would not entail any additional expenditure of Government funds. We think it is clear that if the proposed legislation is enacted it will permit the extended use of Coast Guard personnel in other directions very vital to safety at It would effect an economy to the shipowner without a lowering of standards he must meet in any event. It calls for no additional expense to Government. We therefore urge the passage of S. 743. sea. Senator MAGNUSON. I have a letter from Mr. Lyndon Spencer, president, Lake Carriers' Association. (The letter is as follows:) Hon. WARREN G. MAGNUSON, LAKE CARRIERS' ASSOCIATION, Chairman, Merchant Marine and Fisheries Subcommittee, United States Senate, Washington, D. C. DEAR SENATOR MAGNUSON: We appreciate your letter of March 18, 1955, which informed us of the hearing to be held by your subcommittee on March 24, 1955, on Senate 743 and the invitation to be present at this hearing or to submit a statement on the subject. Speaking for the 320 bulk cargo vessels on the Great Lakes which are enrolled with Lake Carriers' Association, Senate 743 appears to make only one change in the law. This would require that cargo vessels be inspected by the Coast Guard at least once every 2 years instead of every year as is presently required. In all other respects, the safety standards of existing law are preserved. Senate 743 would also retain the provision authorizing the Coast Guard to board at any time a vessel to ascertain whether or not she is in compliance with the requirements of her certificate of inspection and the law and to take appropriate action. The provision for an inspection of cargo vessels every 2 years would afford flexibility in the arrangements for such inspections to meet the requirements of the trades in which vessels are engaged. Since the Coast Guard could make such inspections oftener for any reason there would seem to be no impairment of safety standards with the enactment of this bill. Lake Carriers' Association favors the enactment of Senate 743. We would appreciate having you place this letter in the record of the hearings of your subcommittee as representing the views of Lake Carriers' Association. Very truly yours, LYNDON SPENCER. Senator MAGNUSON. Does anyone else want to be heard on this matter? If not, we will leave the record open a little while. (Thereupon, at 11:40 a. m., the committee proceeded to the con sideration of other business.) HEARING BEFORE THE SUBCOMMITTEE OF THE COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE UNITED STATES SENATE EIGHTY-FOURTH CONGRESS FIRST SESSION ON S. 741 A BILL TO AMEND TITLE XII OF THE MERCHANT MARINE ACT, 1936, RELATING TO WAR RISK INSURANCE, IN ORDER TO REPEAL THE PROVISION WHICH WOULD TERMINATE AUTHORITY TO PROVIDE INSURANCE UNDER SUCH TITLE MARCH 24, 1955 Printed for the use of the Committee on Interstate and Foreign Commerce CONTENTS Oral statement of: Dewey, Ralph B., representing the Pacific American Steamship Asso- Williamson, Hugh S., representing the Association of American Ship Written statement by: Greene, Francis T., executive vice president, American Merchant Clark, Henry W., Alaska Steamship Co., 711 14th Street NW., Page 8 4 10 5 2 McDowell, Carl E., executive vice president, the Association of 9 2 10 Sanford, L. R., president, Shipbuilders Council of America, 21 West Reports from: Department of Commerce, dated March 24, 1955_ Draft of S. 741, amendment in the nature of a substitute, proposed by 72 8 |