71ST CONGRESS 2d Session

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SENATE

REPORT 7 No. 1099

PAYMENT OF CERTAIN CHARGES ON GOODS SHIPPED TO PHILIPPINE ISLANDS

JUNE 25, 1930.-Ordered to be printed

Mr. BINGHAM, from the Committee on Territories and Insular Affairs, submitted the following

REPORT

[To accompany H. R. 6127]

The Committee on Territories and Insular Affairs, to whom was referred the bill (H. R. 6127) to authorize the payment of checking and arrastre charges on consignments of goods shipped to the Philippine Islands, having considered the same, report favorably thereon. with the recommendation that the bill do pass, with the following amendment:

On page 2, in line 11, after the word "services" insert a comma and the following language: "shall not include any charges for ship-side deliveries that may hereafter be made except when services in connection therewith may be requested by the department or bureau concerned".

The following letter from the Assistant Secretary of War stresses the importance of expediting action on the bill for the reason that the nonpayment of the amounts due from the Army and Navy are inflicting a hardship upon those to whom they are due:

Hon. HIRAM BINGHAM,

WAR DEPARTMENT, Washington, May 12, 1930.

Chairman Committee on Territories and Insular Affairs,

United States Senate, Washington, D. C. DEAR MR. CHAIRMAN: H. R. 6127, entitled "A bill to authorize the payment of checking charges and arrastre charges on consignments of goods shipped to the Philippine Islands" passed the House on April 21, 1930, and it is understood that this bill is now before the Senate Committee on Territories and Insular Affairs.

The facts in regard to the purposes of the act are shown in the hearings before a subcommittee of the Committee on Expenditures in the Executive Departments in the House of Representatives on February 28, 1930, and in Report No. 857, Seventy-first Congress, second session, March 7, 1930, to accompany H. R. 6127.

The amounts involved from the Army and Navy are long overdue and nonpayment is working a hardship on those to whom they are due. Payment is only equitable. It is recommended that any practicable steps be taken to expedite favorable action on bill.

If any further information is needed, I shall take pleasure in supplying it.
Sincerely yours,

F. TRUBEE DAVISON,
Acting Secretary of War.

In 1922 the Philippine Legislature, acting within its authority, passed an act to create a harbor board for the port of Manila and provided for the collection of certain charges in connection with imports and exports through the port. These charges include checking charges and arrastre charges. The Manila Harbor board, representing the Philippine government, was authorized to and did contract with a commercial agency, to wit, the Manila Terminal Co., for the operation of the insular-owned piers, warehouses, and other terminal facilities and for the collection of said charges. The arrastre charge became due when a ship discharged its cargo upon a pier and the goods were taken possession of by the Manila Terminal Co. and listed by it as to articles and condition on arrival and stored in the warehouses ready for delivery to the consignee. Checking charges arose when cargo was discharged ship side directly to the consignee's boat or lighter. Here again the Manila Terminal Co. would list the articles discharged and certify their condition. This was necessary in order to complete the statistics regarding the business of the harbor, to insure the collection of the customs charges, and for the protection of the consignee in case of dispute as to the condition in which the goods arrived.

The act of the Philippine Legislature having been called to the attention of the Comptroller General, he promptly held that it was inoperative as to shipments made by the United States Government, although the matter had been previously passed upon by the Quartermaster General of the United States Army, the Judge Advocate General of the War Department, and the Secretary of War himself, all of whom held that the services rendered were necessary, and that the charges in connection therewith were proper and should be paid. The Manila Harbor Board, considering the fact that its agent, the Terminal Co., had to expend money in hiring laborers to handle the Government's shipments from commercial vessels, decided, in view of the Comptroller General's decision, to refuse to land or handle any more goods. As that would have impeded the operation of the United States Government there, the Governor General directed that the services be continued pending negotiations for a final determination of the matter. Hence, Congress was appealed to for relief.

The amount of these charges checked from 1922 up to November 6, 1929, was as follows: For the United States Navy for checking charges, $574.03, and for arrastre charges, $25,135.13; making a total of $25,709.16. For the United States Army, for checking charges, $927.95, and nothing for arrastre charges. The total of all charges unpaid until November 6, 1929, for both Army and Navy, is $26,637.11. The bill authorizes the payment of these past charges as well as future charges.

The committee feels that the United States Government, having created the Philippine government, and authorized it to enact laws within certain prescribed limitations, should be the first one to observe these laws. Hence, in this particular instance, the United States Government ought not to claim an exception but should voluntarily submit itself to the same regulations and charges that are prescribed for commercial concerns enjoying the same services in the Philippine harbor. The passage of the bill, the committee believes, would create a favorable impression in the Philippine Islands.

The proposed amendment has the approval of both the War and Navy Departments.

Mr. McNARY, from the Committee on Agriculture and Forestry, submitted the following

REPORT

[To accompany S. 4586]

The Committee on Agriculture and Forestry, to whom was referred the bill (S. 4586) to authorize additional appropriations for the national arboretum, having considered the same, report thereon with the recommendation that the bill do pass.

In the following letter from the Secretary of Agriculture, he urges immediate action on the legislation because the steady advance of land values makes it imperative to secure the property at the earliest possible date.

JUNE 20, 1930.

Hon. CHARLES L. MCNARY,

Chairman Committee on Agriculture and Forestry,

United States Senate.

DEAR SENATOR: Replying to your letter of May 28, asking my opinion of Senate bill 4586, which authorizes additional appropriations for the national arboretum, I recommend favorable action on the bill for the following reasons: In 1926 when the national arboretum bills were under consideration by the Congress, it was estimated that the land to be purchased would cost $500,000, and that amount was named in the Pepper bill (S. 1640, 69th Cong.), as reported from the Senate Committee on Agriculture and Forestry. This was subsequently reduced to $300,000, the amount authorized and appropriated by the Congress, in order to conform to the financial program at that time.

When the arboretum purchase money became available, in December, 1927, it was found by the Secretary of Agriculture that $300,000 was not sufficient to buy the whole of the area required. The beginning of purchases was delayed for several months while an attempt was made to obtain supplementary gifts of land sufficient to make up the necessary acreage, but the effort failed. Finally, after conference with President Coolidge, Secretary Jardine gave instructions to proceed with the purchase of such land as could be acquired with the $300,000 available, and to leave to future authorization the purchase of the necessary remainder. With the $300,000 already authorized and appropriated 190 acres of land have been purchased for the arboretum and 78 acres more are now in process of condemnation, a total of 268 acres.