shall be subject to examination and inspection by the United States Maritime Commission, which may prescribe rules and regulations and provide for the rating and certification of such schools. The bill further directs and authorizes the Bureau of Marine Inspection and Navigation of the Department of Commerce to prescribe minimum standards of habitability for vessels of any civilian nautical school, and prescribes penalties for the failure to meet those standards. The Navy Department is thoroughly in accord with the purpose of the bill H. R. 7639, and recommends its enactment, but suggests for the sake of simplicity in the administration of this legislation that activities such as the following be exempted from its provisions: (a) The organized activities of the Sea Scouts department of the Boy Scouts of America. (b) Summer camps, which make use of vessels for cruising their campers, including those which operate entirely on board a vessel. (c) Cruises aboard yachts or vessels of the merchant marine that are held under the auspices of bona fide schools or colleges. There will be no cost to the Navy, if the bill H. R. 7639 be enacted. The Navy Department has been advised by the Bureau of the Budget that there would be no objection to the submission of this report. Sincerely yours, MAY 21 (legislative day AFRIL 24), 1940.-Ordered to be printed Mr. BAILEY, from the Committee on Commerce, submitted the following REPORT [To accompany H. R. 8283] The Committee on Commerce, to whom was referred the bill (H. R. 8283) to amend section 4370 of the Revised Statutes of the United States (U. S. C., 1934 ed., title 46, sec. 316), having considered the same, report favorably thereon without amendment with the recommendation that the bill do pass. The report of the House Committee on Merchant Marine and Fisheries follows: The Committee on Merchant Marine and Fisheries, to whom was referred the bill (H. R. 8283) to amend section 4370 of the Revised Statutes of the United States (U. S. C., 1934 edition, title 46, sec. 316), having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. The amendment is as follows: Page 3, line 24, strike out the words and comma "in Alaska,". Your committee is advised that it is very necessary that Alaska be omitted. There are not sufficient domestic operations to take care of the situation, and it is very necessary that Alaska be excluded. PURPOSE OF THE BILL This Section 4370 of the Revised Statutes of the United States (U. S. C., 1934 edition, title 46, sec. 316) is wholly inadequate. It provides that all steam tugboats not of the United States, found employed in towing documented vessels of the United States plying from one port or place in the same to another, shall be liable to a penalty of 50 cents per ton on the measurement of every such vessel so towed by them respectively, which sum may be recovered by way of libel or suit. section does not apply to any case where the towing, in whole or part, is within or upon foreign waters. It is provided that any foreign railroad company or corporation, whose road enters the United States by means of a ferry or tugboat, may own such boat, and it shall be subject to no other or different restrictions or regulations in such employment than if owned by a citizen of the United States. A bill, H. R. 8533, for the purposes of this bill was introduced November 25, 1937, and hearings were held thereon; H. R. 200, of which this bill is an improved form, was introduced January 3, 1939, and hearings held thereon. Evidence to the committee disclosed that the small penalty of 50 cents per ton was wholly inadequate to protect our domestic trade from foreign towing vessels coming in, contracting for, and securing tows; carrying them long distances; receiving many times the amount of the penalty, so that they could easily pay the penalty, compete with our domestic operators operating with higher costs, pay the penalty, and yet tow the vessels in our coastwise or intercoastal trade for less money than our domestic towboats could tow the vessels. The situation on the Pacific coast was outlined by one of the operators there who pointed out recently (the date then was October 1937) a large steel car barge moved from New Orleans to Seattle. The price for towing this barge was about $35,000 and was done by an American tug. The point is that a British tug or any foreign tug merely by paying the insignificant penalty of $200 or $300 could have afforded to take the contract. The operating and overhead costs of the foreign tugs would be so much lower than our operators could pay, the foreign towboats could pay the fine and make money. As to the Pacific coast the witness says that the situation affects them at Seattle as Canadian towboats come to Seattle and pick up a tow, take it a few miles, and drop anchor in a Canadian port. They have then technically entered and cleared to a foreign country whereupon they will start for San Francisco or Los Angeles. The witness says: "It is true that technically these are two foreign voyages, but the two constitute one American coastwise voyage. It is a subterfuge and a breach of our coastwise law and their actions will not stand investigation. But the point is that they don't care whether the Government investigates them or not as this statute limits the punishment to merely a few cents per ton. The law is now therefore a blanket actually protecting foreign tugs (by limiting the penalty to 50 cents per ton) instead of being, as it was originally, a real deterrent." The Great Lakes area is also very materially affected. One witness there said: "From our experience in competing with some of these foreign towboats as to price, we are of opinion that they could pay a fine of $500 and still underbid us for the towing." Another witness showed that Canadian harbor tugs paid $16.17 wages per day for captains, engineers, deck hands, and firemen, while the Great Lakes Towing Co., an American company, paid $40.75 per day. Canadian tugs salvage work and lake towing had an expense of $390 to $425 per month for pay to captains, engineers, firemen, and deck hands, while the American company had an expense for the same purpose of $1,225.50. Again there was no time limit for the crews of the Canadian tugs, doing harbor work, but on the basis of two crews to keep a tug in commission 24 hours a day, their cost for wages for the Canadian would be $32.34 a day, while the American doing similar work would be $81.50. For lake work and salvage work, it is necessary to carry two crews of four men each and a cook and furnish meals to the men. On that basis, allowing $60 a month for a cook for the Canadian tug, their costs for wages only runs from $840 to $910 per month. Under the same conditions, the wage cost of the American company is $2,595 per month, the cook's wages being $150 per month. Revised Statute 4370 is so wholly inadequate it is practically useless. The proposed bill will make its purposes adequate. At the same time by careful study of all treaty rights and existing statutes which might be affected adversely, care has been taken to protect against such results. The bill has been submitted to the Department of State, Department of Commerce, and the Maritime Commission. Their reports are attached, and in each report we are advised that the Bureau of the Budget advises that there is no objection to the report. The State Department advises that so far as the interests entrusted to that Department are concerned there is no objection to the enactment of the proposed legislation. The Department of Commerce recommends enactment of the bill, and says that, if enacted, it will not increase the expenditures of the Department. The United States Maritime Commission approved of subsections (a), (b), (c), (d), and (e) with the authority granted to the Secretary of Commerce to permit a foreign vessel or vessels to be used in salvage operations in certain areas, if no available American-owned and documented vessels are available. The report of the Maritime Commission discusses the bill in detail. Your committee recommend that the bill, as amended, do pass. The reports referred to above follow: The Honorable S. O. BLAND, DEPARTMENT OF STATE, Chairman, Committee on Merchant Marine and Fisheries, House of Representatives. MY DEAR MR. BLAND: In further response to your letter dated February 5, 1940, requesting the views and recommendations of the Department on H. R. 8283 entitled "A bill to amend section 4370 of the Revised Statutes of the United States (U. S. C., 1934 ed., title 46, sec. 316)," you are advised that so far as the interests entrusted to this Department are concerned there is no objection to the enactment of this proposed legislation. I am advised by the Bureau of the Budget that there is no objection to the submission of this report to your committee. Sincerely yours, Hon. S. O. BLAND, CORDELL HULL. DEPARTMENT OF COMMERCE, Chairman, Committee on Merchant Marine and Fisheries, House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: In your communication of February 5, 1940, you requested the views of the Department with respect to H. R. 8283, a bill to amend section 4370 of the Revised Statutes of the United States (U. S. C., 1934 ed., title 46, sec. 316). This bill is similar to H. R. 200 on which hearings were held before your committee on January 23, 1940. The Department in reporting on the latter bill on February 20, 1939, submitted a memorandum of the Director of the Bureau of Marine Inspection and Navigation which suggested certain amendments to the bill as introduced. H. R. 8283 contains the amendments suggested in that memorandum and is otherwise indentical with H. R. 200, with the exception of the addition of the phrase "within the meaning of the laws respecting documentation of vessels" on lines 8 and 9, page 1. That phrase clarifies the meaning of the term "citizen of the United States" as used in the bill. The enactment of H. R. 8283 is recommended, and if enacted it will not increase the expenditures of the Department. The Bureau of the Budget has advised that there is no objection to the submission of this report to the committee. Very sincerely yours, EDWARD J. NOBLE, Acting Secretary of Commerce. Hon. S. O. BLAND, UNITED STATES MARITIME COMMISSION, Chairman, Committee on Merchant Marine and Fisheries, House of Representatives. DEAR JUDGE BLAND: On February 5, 1940, you requested the views and recommendations of the Commission with respect to H. R. 8283, a bill to amend section 4370 of the Revised Statutes of the United States (U. S. C., 1934 ed., title 46, sec. 316). Section 4370 of the Revised Statutes of the United States which the bill would amend now provides for certain penalties on foreign tugboats towing vessels between United States ports. The existing law reads as follows: "All steam tugboats not of the United States found employed in towing documented vessels of the United States plying from one port or place in the same to another, shall be liable to a penalty of 50 cents per ton on the measurement of every such vessel so towed by them respectively, which sum may be recovered by way of libel or suit. This section shall not apply to any case where the towing, in whole or in part, is within or upon foreign waters. Any foreign railroad company or corporation, whose road enters the United States by means of a ferry or tugboat, may own such boat, and it shall be subject to no other or different restrictions or regulations in such employment than if owned by a citizen of the United States." The amendment proposed by the bill under consideration materially changes the language of the above-quoted law, increases the penalties for violations, and adds thereto certain new subsections relating to towing and salvage operations. It makes it "unlawful," with certain exceptions, for any vessel not wholly owned by citizens of the United States and "not having in force a certificate of registry, a certificate of enrollment, or a license, issued pursuant to title XLVIII or title L of the Revised Statutes, or a certificate of award of number issued pursuant to the act of June 7, 1918, as amended (U. S. C., 1934 ed., Supp. IV, title 46, sec. 288), to tow any vessel other than a vessel of foreign registry, or a vessel in distress, from any port or place in the United States, its Territories or possessions, embraced within the coastwise laws of the United States, to any other port or place within the same, either directly or by way of a foreign port or place, or to do any part of such towing, or to tow any such vessel, from point to point within the harbors of such places." The bill makes the owner and the master of any vessel violating this provision liable to a fine of not less than $250 nor more than $1,000, with an additional penalty of $50 per ton on the measurement of every vessel towed in violation of the provision. The term "person" as used in the bill is defined to mean "persons, firms, partnerships, associations, organizations, and corporations, doing business or existing under or by the authority of the laws of the United States, or of any State, Territory, District, or other subdivision thereof." The existing provision relating to foreign railroads or corporations whose roads enter the United States by means of a ferry, tug, or towboat is clarified and made more specific, and the rights and obligations of such foreign corporations are more clearly set forth. The bill provides that such foreign corporation may own such vessel and operate the same in connection with its railroad without being subject to any other or different restrictions than those imposed by law on any vessel of the United States entering ports of the United States from ports in the same foreign country. Such "ferry, tug, or towboat" shall not, under penalty of forfeiture, be used in connection with the transportation of merchandise shipped from any port or place in the United States, its Territories, or possessions embraced within the coastwise laws of the United States or to any port or place within the same, except as authorized by section 27 of the Merchant Marine Act, 1920, as amended (46 U. S. C. 883). The bill further provides that no foreign vessel shall, under penalty of forfeiture, engage in salvaging operations on the Atlantic or Pacific coast of the United States, in Alaska, in any portion of the Great Lakes or their connecting or tributary waters, except when authorized by treaty or in accordance with the provisions of the act of June 19, 1878 (46 U. S. Č. 725). However, the Secretary of Commerce, on investigation, and if he is satisfied that no suitable vessel wholly owned by a person who is a citizen of the United States, or numbered pursuant to law, is available in any particular locality, may authorize the use of a foreign vessel or vessels in salvaging operations and such vessels shall not incur the penalty for such authorized use. The bill provides that nothing in the proposed legislation shall be held or construed to prohibit or restrict any assistance to vessels or salvage operations authorized by certain treaties mentioned therein. The Commission approves of the provisions of the bill relating to towing (subsections (a), (b), and (c)). Subsections (d) and (e) of the bill relate to salvage operations. The Maritime Commission, as a coinsurer with private underwriters of some vessels and as the owner of others, is interested, in general, in having adequate salvage vessels available in time of necessity. be no absolute prohibition against the use of any available facilities for salvage It believes that in case of emergency there should purposes, including towing, irrespective of its ownership or registry, if adequate United States owned and registered equipment is not available. Therefore, the provisions of the bill granting the Secretary of Commerce the authority to permit a foreign vessel or vessels to be used in salvage operations in certain areas, if no suitable American-owned and documented vessels are available, meet with the approval of the Commission. This report has been submitted to the Director of the Bureau of the Budget and I am now advised by that Bureau that there would be no objection to its submission to your committee. Sincerely yours, E. S. LAND, Chairman. |