(Also a letter from J. A. Brownlow, president, Metal Trade Department, A. F. of L., dated April 28, 1955:) Hon. CHARLES S. THOMAS, Department of the Navy, Washington, D. C. APRIL 28, 1955. DEAR SECRETARY THOMAS: Hearings were held by the Senate's Interstate and Foreign Commerce Subcommittee on Merchant Marine and Fisheries on April 21-22, 1955, with respect to the Navy tanker charter program authorized by Public Law 575, approved August 10, 1954. Maritime Administrator Clarence G. Morse, during the course of his testimony on April 22, read into the record a telegram which he had received from National Bulk Carriers indicating its willingness to enter into contracts to build and charter to the Navy a total of 1 to 3 tankers under Public Law 575 on the basis of the 90 percent mortgage Insurance which the Maritime Administration is willing to grant under Public Law 781, approved September 3, 1954. In our opinion, National Bulk Carriers certainly does not meet that portion of the requirements of Public Law 575, section 1, (a) (2) which requires the Secretary of the Navy to "give preference to operators who are exclusively engaged in the operation of American flag ships." The National Bulk Carriers has a fleet of ore carriers and oil tankers engaged in American overseas trade and which it constructed in foreign yards and operates under foreign flag. According to information in the public press, this company leased the facilities of the former Imperial Navy Yard at Kure, Japan, in 1951 for a 10-year period for $750,000. It is the first and only foreign firm to be granted shipbuilding rights in a Japanese shipyard, which rights continue through 1961 and are subject to renewal. Since mid-1952, it is reported that National Bulk Carriers has completed 5 oil tankers totaling 197,000 deadweight tons and 3 ore carriers totaling 180,000 deadweight tons in the Kure yards. A sixth tanker of 38,000 deadweight tons is scheduled for completion this year. All of these vessels are Liberian flag registry. Reports indicate that this company has now made application to the Japanese Ministry of Transportation to build 4 more vessels, 3 ore carriers of 45,000 deadweight tons each and 1 combination ore/oil carrier of 58,000 deadweight tons. It has already obtained approval to transform a 30,000-ton oil carrier to a 36,000ton bulk carrier. Your attention is respectfully directed to the statement submitted in evidence by this company at the above-mentioned subcommittee hearings. In its statement, among other things, it indicated its desire for modifications in Public Law 575, section 1 (a) (2), and (c) (1) so that in effect, they would only apply to the corporate entity entering the bid. In our opinion, this company's offer to build and charter, is premised upon obtaining such changes in Public Law 575 or in its interpretation. As we see it, these provisions of the law would be rendered empty and useless if modified or interpreted in such manner. During this critical period for American shipbuilding and our American merchant marine, this company engages in American overseas trade with a fleet of vessels built in foreign yards and operating under foreign flag, thus further aggravating the extremely depressed conditions of our own shipbuilding and maritime industries. We sincerely urge that the provisions of Public Law 575 should in no way be relaxed for any bidder and that careful attention be given to avoiding entering into contract with any company established in effect, for the purpose of attempting to qualify a prospective contractor who could not, itself, meet the qualifications of the law. HEARINGS BEFORE A UNIVERSITY SUBCOMMITTEE OF THE UL COMMITTEE ON MAIN READING ROOM INTERSTATE AND FOREIGN COMMERCE UNITED STATES SENATE EIGHTY-FOURTH CONGRESS FIRST SESSION ON S. 1119 With Amendments and S. 308 O AMEND THE CIVIL AERONAUTICS ACT OF 1938, AS CONTENTS Oral statement by Anderson, Dr. Charles, president, Interchurch Transportation Com- Goff, A. McGregor, Solicitor (Transportation), Post Office Depart- Hammond, Harold F., executive vice president, Transportation Asso- Johnston, Hamlin B., president, Aircoach Transport Association, Inc., Maclay, Hardy, director, North American Aircoach System, Inc., and O'Connell, Francis A., legislative representative, air transport division, Page 217 317 135 181 92 224 145 184 155 162 322 220 54, 346 231 327 304 Riley, George D., member, legislative representative, American Fed- Rizley, Ross, Chairman, Civil Aeronautics Board, accompanied by Snow, Crocker, National Association of State Aviation Officials, Tipton, S. G., general counsel, Air Transport Association of America, Barber, Hartmen, general representative of the Brotherhood of Rail- |