the original report from the departments, a statement of the New York department of commerce, and a statement from our colleague, Hon. F. Edward Hébert, of Louisiana.

(The documents are as follows:)

[H. R. 328, 81st Cong., 1st sess]

A BILL, To amend the Act entitled "An Act to create the Inland Waterways Corporation for the purpose of carrying out the mandate and purpose of Congress as expressed in sections 201 and 500 of the Transportation Act, and for other purposes", approved June 3, 1924, as amended

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2 of the Act entitled "An Act to create the Inland Waterways Coropration for the purpose of carrying out the mandate and purpose of Congress, as expressed in sections 201 and 500 of the Transportation Act, and for other purposes", approved June 3, 1924 (par. 152, ch. 5, title 49, Code of Laws of the United States, 43 Stat. 360), as amended, be, and the same is hereby, amended to read as follows:

SEC. 2. The capital stock of the Corporation shall be $33,000,000, all of which is hereby subscribed for by the United States. Such subscription shall be paid by the Secretary of the Treasury within the appropriations therefor, upon call from time to time by the Secretary of Commerce. Upon any such payment a receipt therefor shall be issued by the Corporation to the United States, and delivered to the Secretary of the Treasury, and shall be evidence of the stock ownership of the United States. There is hereby authorized to be appropriated the sum of $18,000,000 in addition to the $15,000,000 heretofore authorized, for the purpose of paying such subscription."

[H. R. 429, 81st Cong., 1st sess.]

A BILL To increase the capital stock of the Inland Waterways Corporation and to extend the service of such Corporation to the Tennessee and Cumberland Rivers

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2 of the Act entitled "An Act to create the Insland Waterways Corporation for the purpose of carrying out the mandate and purpose of Congress, as expressed in sections 201 and 500 of the Transportation Act, and for other purposes," approved June 3, 1924, as amended (U. S. C., 1940 edition, title 49, sec. 152), is hereby amended to read as follows: "SEC. 2. The capital stock of the Corporation shall be $33,000,000, all of which is hereby subscribed for by the United States. Such subscription shall be paid by the Secretary of the Treasury within the appropriations therefor, upon call from time to time by the Secretary of Commerce. Upon any such payment a receipt therefor shall be issued by the Corporation to the United States, and delivered to the Secretary of the Treasury, and shall be evidence of the stock ownership of the United States. There is hereby authorized to be appropriated the sum of $18,000,000 in addition to the $15,000,000 heretofore authorized, for the purpose of paying such subscription.'

SEC. 3. Subsection (b) of section 3 of such Act, as amended (U. S. C., 1940 edition, title 49, sec. 153 (b)), is hereby amended by inserting after "Mississippi River," the words "including the Tennessee and Cumberland Rivers" and by inserting after "Ohio River" the following: "and its tributaries above the confluence of the Cumberland and Ohio Rivers."

[H. R. 4978, 81st Cong., 1st sess.]

A BILL To amend the Act entitled "An Act to create the Inland Waterways Corporation for the purpose of carrying out the mandate and purpose of Congress as expressed in sections 201 and 500 of the Transportation Act, and for other purposes", approved June 3, 1924, as amended

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2 of the Act entitled "An Act to create the Inland Waterways Corporation for the purpose of carrying out the mandate and purpose of Congress, as expressed in sections 201 and 500 of the Transportation Act, and for other purposes", approved June 3, 1924 (par. 152, ch. 5, title 49, Code of Laws of the United States, 43 Stat. 360), as amended, be, and the same is hereby, amended to read as follows:

"SEC. 2. The capital stock of the Corporation shall be $33,000,000, all of which is hereby subscribed for by the United States. Such subscription shall be paid by the Secretary of the Treasury within the appropriations therefor, upon call from time to time by the Secretary of Commerce. Upon any such payment a receipt therefor shall be issued by the Corporation to the United States, and delivered to the Secretary of the Treasury, and shall be evidence of the stock ownership of the United States. There is hereby authorized to be appropriated the sum of $18,000,000, in addition to the $15,000,000 heretofore authorized, for the purpose of paying such subscription."

SEC. 2. Subsection (d) of section 3 of such Act is amended by inserting before the period at the end thereof a colon and the following: "And provided further, That no part of the carrier operations of the corporation shall be discontinued or disposed of for a period of at least five years following the date of enactment of the Inland Waterways Amendments of 1949”.

SEC. 3. Section 3 of such Act is further amended by adding at the end thereof the following new subsections:

'(g) The activities of the corporation shall be primarily in the fields of pioneering and research in the development of its carload and less-than-carload traffic; in the development of modern and efficient public terminal facilities, open to all on equal terms, including rehabilitation and modernization of existing terminals; and in the development of all types of traffic on newly improved rivers where it is presently authorized to operate, including the Missouri River.

"(h) Except with respect to traffic in grain and soybeans and traffic originating at or destined to points on newly improved rivers, including the Missouri River, the corporation shall not substantially expand its bargeload traffic where privately owned barge lines and terminals are ready, willing, and able to provide adequate service."

SEC. 4. (a) Subsection (a) of section 4 of such Act is amended to read as follows:

"(a) The Secretary of Commerce shall appoint an advisory board of nine members (hereinafter referred to as the 'board') from individuals prominently identified with commercial or business interests in territory adjacent to the operations of the corporation. At least two of the members shall be representatives of privately owned carriers for hire operating on the Mississippi River system, of whom at least one shall be a representative of a certified carrier, and at least two of such members shall be representatives of less-than-bargeload shippers. No member of the board shall be an officer, director, or employee of, or substantially interested in, any railroad corporation. Each member of the board shall be appointed for a term of five years from the date of the expiration of the term of the member whom he succeeds, except that (1) any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed only for the unexpired portion of such term, and (2) members first appointed to the vacancies created by the Inland Waterways Amendments of 1949 shall be appointed for terms of three, four, and five years, respectively, from the dates of their appointments. A vacancy in the board shall not impair the powers of the remaining members to execute the functions of the board."

(b) Subsection (c) of such section is amended by striking out the word "six" and inserting in lieu thereof the word "nine".

SEC. 5. This Act may be cited as the "Inland Waterways Amendments of 1949".

[PUBLIC NO. 185-68TH CONGRESS]
[H. R. 8209]

AN ACT To create the Inland Waterways Corporation for the purpose of carrying out the mandate and purpose of Congress as expressed in sections 201 and 500 of the Transportation Act, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That for the purpose of carrying on the operations of the Government-owned inland, canal, and coastwise waterways system to the point where the system can be transferred to private operation to the best advantage of the Government, of carrying out the mandates of Congress prescribed in section 201 of the Transportation Act, 1920, as amended, and of carrying out the policy enunciated by Congress in the first paragraph of section 500 of such Act, there is hereby created a corporation, in the District of Columbia, to be

known as the Inland Waterways Corporation (hereinafter referred to as the "corporation"). The Secretary of War shall be deemed to be the incorporator, and the incorporation shall be held effected upon the enactment of this Act. The Secretary of War shall govern and direct the corporation in the exercise of the functions vested in it by this Act.

SEC. 2. The capital stock of the corporation shall be $5,000,000, all of which is hereby subscribed for by the United States. Such subscription shall be paid by the Secretary of the Treasury, within the appropriations therefor, upon call from time to time by the Secretary of War. Upon any such payment a receipt therefor shall be issued by the corporation to the United States and delivered to the Secretary of the Treasury, and shall be evidence of the stock ownership of the United States. There is hereby authorized to be appropriated the sum of $5,000,000 for the purpose of paying such subscription.

SEC. 3. (a) Until otherwise directed by Congress, the corporation shall continue the operation of the transportation and terminal facilities now being operated by or under the direction of the Secretary of War, under section 201 of the Transportation Act, 1920, as amended, and shall, as soon as there is an improved channel sufficient to permit the same, initiate the water carriage heretofore authorized by law upon the Mississippi River above Saint Louis.

(b) If the Secretary of War deems it advisable to discontinue the operation of any part of the transportation or terminal facilities, or to develop and operate new lines, in order to give the public the proper service, he shall report thereon to Congress. The operation of any of such facilities shall not be discontinued and new lines shall not be developed or operated until authorized by Congress.

(c) The operation of the transportation and terminal facilities under this Act shall be subject to the provisions of the Interstate Commerce Act, as amended, and to the provisions of the Shipping Act, 1916, as amended, in the same manner and to the same extent as if such facilities were privately owned and operated; and all vessels of the corporation operated and employed solely as merchant vessels shall be subject to all other laws, regulations, and liabilities governing merchant vessels.

SEC. 4. (a) The Secretary of War shall appoint an Advisory Board of six members (hereinafter referred to as the "board") from individuals prominently identified with commercial or business interests in territory adjacent to the operations of the corporation. No member of the board shall be an officer, director, or employee of, or substantially interested in, any railroad corporation. Two of such members shall continue in office for terms of one year, and the remaining four for terms of two, three, four, and five years, respectively, from the date of appointment, the term of each to be designated by the Secretary of War. Each successor shall be appointed by the Secretary of War for a term of five years from the date of the expiration of the term of the member whom he succeeds, except that any successor appointed to fill a vacancy occurring prior to the expiration of a term shall be appointed only for the unexpired term of the member whom he succeeds. A vacancy in the board shall not impair the powers of the remaining members to execute the functions of the board.

(b) The members shall receive no salary for their services on the board but, under regulations and in amounts prescribed by the Secretary of War, may be paid by the corporation a reasonable per diem compensation for attending meetings of the board and for time spent on special service of the corporation, and their traveling expenses to and from such meetings, or when assigned to such special service.

(c) In addition to the six members, the Secretary of War shall appoint an individual from civil life, or (notwithstanding section 1222 of the Revised Statutes or any other provision of law, or any rules or regulations issued thereunder) detail an officer from the Military Establishment of the United States, as chairman of the board. Any officer so detailed shall, during his term of office as chairman, have the rank, pay, and allowances of a brigadier general, United States Army, and shall be exempt from the operation of any provision of law, or any rules or regulations issued thereunder, which limits the length of such detail or compels him to perform duty with troops. Any individual appointed from civil life shall, during his term of office as chairman, receive a salary not to exceed $10,000 a year to be fixed by the Secretary of War. The Secretary of War may delegate to the chairman any of the functions vested in the Secretary by this Act.

(d) The board shall meet for organization purposes when and where called by the Secretary of War, and thereafter at such times and places as the Secretary deems necessary. The board shall consider matters submitted to it by the Secretary of War, and make recommendations thereon, and from time to time advise

him and make recommendations, in respect of the management and operation of existing facilities, or the development and operation of new lines.

SEC. 5. The corporation

(a) Shall have succession in its corporate name during its existence;

(b) May sue and be sued in its corporate name;

(c) May adopt a corporate seal, which shall be judicially noticed, and may alter it at pleasure;

(d) May make contracts;

(e) May acquire, hold, and dispose of property;

(f) May appoint, fix the compensation of, and remove such officers, employees, attorneys, and agents as are necessary for the transaction of the business of the corporation; define their duties, and require bonds of them, and fix the penalties thereof;

(g) May incur obligations, borrow money for temporary purposes, and issue notes or other evidences of indebtedness therefor, but the aggregate amount of the indebtedness at any time shall not exceed 25 per centum of the value of the assets at such time;

(h) May exercise any of the functions vested in the Secretary of War by sections 201 and 500 of the Transportation Act, 1920, as amended;

(i) May, in the exercise of such functions, conduct the business of a common carrier by water, and maintain, manage, and operate properties held for or used in the service of transportation, or necessary or convenient to such use; and

(j) In addition to the powers specifically granted, shall have such powers as may be necessary or incidental to fulfill the purposes of its creation.

SEC. 6. (a) The Secretary of War shall transfer to the corporation all assets transferred to, or acquired, constructed, or operated by, or under the direction of, the Secretary of War, or which revert to the United States, under section 201 of the Transportation Act, 1920, as amended, or under the joint resolution entitled "Joint resolution to exempt the New York State Barge Canal from the provisions of section 201 of the Transportation Act, 1920, and for other purposes," approved February 27, 1921.

(b) The rights, privileges, and powers, and the duties and liabilities, of the Secretary of War, or the inland and coast wise waterways service, in respect of any contract, loan, lease, account, or other obligation, under section 201 of such Act, or under such joint resolution, shall become the rights, privileges and powers, and the duties and liabilities, respectively, of the corporation.

(c) All money available for expenditure or the making of loans under such joint resolution or section 201 of such Act, and all money repaid in pursuance of loans made under subdivision (c) of section 201 of such Act, shall be available for expenditure or the making of loans by the corporation under this Act.

(d) The enforcible claims of or against the Secretary of War, or the inland and coastwise waterways service, in respect of the operation, construction, or acquisition of any such transportation facilities, shall become the claims of or against, and may be enforced by or against, the corporation.

(e) The Secretary of War shall adjust and appraise the value, at the time of transfer, of all assets transferred to the corporation under this Act, and such value shall be entered upon the books of the corporation.

(f) In the determination of the running of the statute of limitations or of any prescriptive right, the period of time shall be computed in the same manner as though this Act had not been passed.

Approved, June 3, 1924.

DEPARTMENT OF COMMERCE, Washington 25, D. C., June 10, 1949.

Hon. ROBERT CROSSER,

Chairman, Committee on Interstate and Foreign Commerce,
House of Representatives, Washington, D. C.

DEAR MR. CHAIRMAN: This is in further reference to your letters of January 12, 1949, and January 13, 1949, regarding the bills H. R. 328 and H. R. 429, respectively, and your letter of June 3, 1949, regarding the bill H. R. 4978, all of which authorize increasing the capital stock of the Inland Waterways Corporation from $15,000,000 to $33,000,000.

The foregoing bills are similar to the bill, S. 211, and amendments thereto, introduced in the Senate. Our comments on the Senate bill are equally applicable to the provisions contained in the House bills. Accordingly, there is attached a report of the Department submitted to the Senate Committee on Interstate and

Foreign Commerce on June 8, 1949, in regard to amendments to S. 211, and request that it be accepted as our comments in regard to the relevant provisions of the House bills, H. R. 429 and H. R. 4978. We have been informed by the Bureau of the Budget that the report is in accord with the President's program respecting the Inland Waterways Corporation as enunciated in his budget message.

In addition, there is also attached a report concerning a rehabilitation program for the Corporation, together with a report on the integrated tow unit placed in service in May 1948. The rehabilitation program outlined in the attached report is based on the advice we received from the Bureau of the Budget on May 24, 1949, that authorization of a sum not to exceed $10,000,000 for additional capital for the Corporation would be in conformance with the program of the President. Sincerely yours,

C. V. WHITNEY, Acting Secretary of Commerce.

REPORT OF DEPARTMENT OF COMMERCE CONCERNING LEGISLATION FOR REHABILITATION OF INLAND WATERWAYS CORPORATION

The proposed bills, H. R. 4978, H. R. 429, and H. R. 328, would authorize an additional $18,000,000 of capital stock for the Inland Waterways Corporation. However, inasmuch as the Bureau of the Budget has advised us that an authorization of $10,000,000 for increased capital would be in conformance with the program of the President, the rehabilitation program summarized in this report is based upon such limitation.

As has been developed in great detail in congressional hearings, in the report of the Small Business Committee and in other documents, a large portion of the equipment of the Inland Waterways Corporation is in such a state of obsolescence and deterioration that major replacements are immediately necessary in order to prevent curtailment of the service on account of forced retirement of equipment. Funds obtained by the subscription of stock authorized by the proposed bill would, when provided for by appropriation, be used for the rehabilitation and replacement of such obsolete and run-down equipment. At the present time, there are in service on the Mississippi unit 12 vessels and 125 barges which should be retired immediately but which cannot be spared because of the necessity for maintaining service. There are in addition three comparatively new Defense Plant Corporation (DPC) towboats, three vessels recently converted from steam to Diesel power, two comparatively new, but small, Diesel vessels and 99 barges, all of which are fairly efficient and have considerable useful life left.

Principally because of the obsolescence and deterioration of floating equipment and the inefficiency of the principal terminals, the Corporation has lost considerable money. The salient features of the rehabilitation program necessary to provide proper common carrier service to the areas served are approximately as follows:

1. Additional integrated towboats and additional barge capacity. Following the pattern of the successful experiment in the use of the integrated tow, equipment of this sort should be provided to furnish a reasonably frequent service between New Orleans, Chicago, Minneapolis, and Omaha. This will require the construction of a towboat especially designed for Illinois and Chicago River service and a towboat especially designed for Missouri River service; adaptation of the Harry Truman for upper Mississippi River service; and the conversion of three DPC steam towboats for integrated tow service on the lower Mississippi River. These six towboats and 70,000 tons of additional barge capacity would be sufficient to handle all merchandise traffic and package freight in present volume, together with some of the present bulk traffic volume (enough to fill out to full capacity tows not fully utilized by merchandise traffic). This equipment could handle all traffic, both bulk and merchandise, through the low bridges into the Chicago area and all traffic on the Missouri River.

The construction and adaptation of the foregoing towboats would cost $1,450,000 and the necessary additional barge capacity of 70,000 tons would cost $6,190,000.

Attached herewith is a report on the integrated unit placed in service in May 1948. Performance records during the experimental period ending in November 1948 indicate substantial economies over conventional equipment. Similar equipment is contemplated in the program outlined herein.

2. Improvements to towboats and barges.- Certain capital improvements are required in the existing fleet to secure the maximum efficiency. The three towboats

to be used in integrated tows should be fitted with waterwalls in the fireboxes for more efficient steam generation. These and four other towboats should be