SECRETARY OF COMMERCE: DEPARTMENT OF COMMERCE, 1. The bureau is returning herewith your letter of May 23, 1929, from Hon. W. L. Jones, chairman of the Senate Committee on Commerce, requesting a report on S. 846, a bill to authorize the Secretary of Commerce to convey to the State of Michigan for park purposes the Cheboygan Lighthouse Reservation, Mich. 2. This reservation will not be required for lighthouse purposes after the Poe Reef and the Fourteen Foot Shoal Light Stations have been completed. It is expected that the Poe Reef Light Station will be completed and placed in commission shortly after July 1. The Fourteen Foot Shoal Light Station, however, which more directly takes the place of the Cheboygan main light station, will probably not be completed until about the middle of October. It is therefore recommended that the bill be approved if there is no objection on behalf of the department and if it is not in conflict with the President's financial program, with the understanding that the transfer will not be made until the stations above referred to have been completed and the property is no longer desired for lighthouse purposes. A copy of the bill is inclosed. H. D. KING, BUREAU OF THE BUDGET, MY DEAR MR. SECRETARY: I have your letter of June 26, 1929, with regard to S. 846, a bill to authorize the Secretary of Commerce to convey to the State of Michigan for park purposes the Cheboygan Lighthouse Reservation, Mich. In so far as the financial program of the President is concerned there is no objection to your proposed favorable report on this bill. I am returning herewith the inclosures which accompanied your letter. Very truly yours, The honorable the SECRETARY OF COMMERCE. J. CLAWSON, Roop, Director. Mr. E. J. LAYTON, DEPARTMENT Of Commerce, Clerk Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D. C. DEAR SIR: 1. Referring to your inquiry over the telephone to-day regarding Senate bill 846, which has passed the Senate and is now before a Subcommittee of the Committee on Interstate and Foreign Commerce, with reference to a memorandum to the Secretary of Commerce signed by H. D. King, Acting Commissioner of Lighthouses, dated June 24, 1929, which mentions certain lights which will be completed later, and inquiring for the information of the committee whether these lights have been completed. 2. You are respectfully advised, confirming the information given you over the telephone, that Poe Reef Light Station was established August 15, 1929, and work finally completed on November 30, 1929, and that Fourteen Foot Shoal will probably be completed on May 31, 1930. Very truly yours, O G. R. PUTNAM, = MERCHANT MARINE ACT FEBRUARY 8, 1930.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. WHITE, from the Committee on the Merchant Marine and Fisheries, submitted the following REPORT [To accompany H. R. 7998] The Committee on the Merchant Marine and Fisheries, to which was referred the bill (H. R. 7998) amending subsection (d) of section 11 of the merchant marine act of June 5, 1920, as amended by section 301 of the merchant marine act of May 22, 1928, having had the same under consideration, reports it back to the House with the following amendments: No. 1. Insert, after the figures "1928", in the enacting clause of the bill, the words in parentheses "United States Code, title 46, section 871; Forty-fifth Statutes at Large, part 1, page 691". No. 2. Insert the letter "d" in parentheses at the beginning of line 7, on page 1. No. 3. After the semicolon in line 4, on page 2, insert the word "and", and after the period in line 11, on page 2, insert the following: The rates of interest herein prescribed shall also apply to advances hereafter made on contracts heretofore entered into. The lowest rate of interest shall not be granted for the construction, equipment, reconditioning, remodeling, or improvement of any vessel, unless it is contracted that such vessel, upon completion, shall not be operated in the coastwise and/or intercoastal trade for more than three months in any year; and, if such vessel shall be so operated in such trades for more than three months in any year the board shall collect the difference between the low rate of interest charged and 5 per centum per annum during the period of construction, equipment, reconditioning, remodeling, or improvement. As so amended, the said committee recommends that the bill be passed. In compliance with paragraph 2a of Rule XIII of the Rules of the House, the following shows the present statute as proposed to be amended. The matter printed in italics represents the new matter to be inserted and the matter printed in brackets represents the old matter to be eliminated. (d) All such loans shall bear interest at rates as follows, payable not less frequently than annually: During any period in which the vessel is operated exclusively in coastwise trade or is inactive, the rate of interest shall be as fixed by the board, but not less than 54 per centum per annum. During the period in which a vessel for the foreign trade is being constructed, equipped, reconditioned, remodeled, or improved; and/or, during any period in which [the] such a vessel is operated in foreign trade the rate shall be the lowest rate of yield (to the nearest one-eighth of 1 per centum) of any Government obligation bearing a date of issue subsequent to April 6, 1917 (except postal savings bonds), and outstanding at the time the loan is made by the board, as certified by the Secretary of the Treasury to the board upon its request. The rates of interest herein prescribed shall also apply to advances hereafter made on contracts heretofore entered into. The lowest rate of interest shall not be granted for the construction, equipment, reconditioning, remodeling, or improvement of any vessel, unless it is contracted that such vessel upon completion shall not be operated in the coastwise and/or intercoastal trade for more than three months in any year; and if such vessel shall be so operated in such trades for more than three months in any year the board shall collect the difference between the low rate of interest charged and 54 per centum per annum during the period of construction, equipment, reconditioning, remodeling, or improvement.. The board may prescribe rules for determining the amount of interest payable under the provisions of this paragraph. This bill was introduced and urged upon the attention of the committee by Congressman Free, of California. The merchant marine act of 1928 provided: (d) All such loans shall bear interest at rates as follows, payable not less frequently than annually: During any period in which the vessel is operated exclusively in coastwise trade, or is inactive, the rate of interest shall be as fixed by the board, but not less than 5 per centum per annum. During any period in which the vessel is operated in foreign trade the rate shall be the lowest rate of yield (to the nearest one-eighth of 1 per centum) of any Government obligation bearing a date of issue subsequent to April 6, 1917 (except postalsavings bonds), and outstanding at the time the loan is made by the board, as certified by the Secretary of the Treasury to the board upon its request. board may prescribe rules for determining the amount of interest payable under the provisions of this paragraph. The It was thought, at the time this bill was passed, that during the period of construction the lower rate of interest would be charged, but it has been construed that even though a ship is under construction, and not completed, it is inactive, and, therefore, carries the high rate of interest. The bill, as recommended by the committee, is intended to clarify the situation so that during the period of construction, equipment, reconditioning, remodeling, and improving the lower rate of interest shall be charged. The committee was also of the opinion that this lower rate should apply to advances hereafter to be made on contracts heretofore entered into but not on advances heretofore made. It was recognized when this legislation was enacted that vessels for the foreign trade especially merited the aid of Congress. It is felt advisable to further effectuate this purpose by the specific provision carried in the amendment No. 3, that the lower rate of interest should not be enjoyed unless it was contracted that the vessel for which the loan was made should not be operated in the coastwise or intercoastal trades for more than three months in each year, and if such vessel did so operate for more than three months the board should then collect the higher rate of interest. In this form the bill had the unanimous approval of your committee. О 2d Session No. 637 AMENDMENT TO THE MERCHANT MARINE ACT, 1928 FEBRUARY 8, 1930.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. WHITE, from the Committee on the Merchant Marine and Fisheries, submitted the following REPORT [To accompany H. R. 8361] The Committee on the Merchant Marine and Fisheries, to whom was referred the bill (H. R. 8361) to further develop an American merchant marine, to assure its permanence in the transportation of the foreign trade of the United States, and for other purposes, introduced by Mr. Davis, having considered the same, unanimously report favorably thereon, and with the following amendment recommend that the bill be passed: Amend the bill by inserting after the word "ships" in line 11 page 2, the following: If the Postmaster General hereafter enters into any contract under this title for carrying mail and the holder of a contract thereafter violates the terms of this proviso, said contract shall thereupon become null and void. The Postmaster General shall submit to the Shipping Board the question of the eligibility of each applicant for a mail contract under the terms of this proviso; and if, after the award of such a contract, any question arises as to whether the holder of such a contract is violating the terms of this proviso, the Postmaster General shall likewise submit such question to the Shipping Board. The Shipping Board shall determine and certify to the Postmaster General its findings with respect thereto. Such findings and certification by the Shipping Board shall be conclusive upon all parties. The bill reported herewith, incorporating the committee amendment, and showing in italics the proposed amendments to the merchant marine act, 1928, is as follows: [House Report No. 8361, Seventy-first Congress, second session] A BILL To further develop an American Merchant Marine, to assure its permanence in the transportation of the foreign trade of the United States, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That Title IV, section 404, of the merchant marine act, 1928 (United States Code, title 46, section 891h; Forty-fifth Statutes at Large, part 1, page 693), is amended to read as follows: SEC. 404. The Postmaster General is authorized to enter into contracts with citizens of the United States whose bids are accepted for the carrying of mails between ports (exclusive of ports in the Dominion of Canada other than ports in Nova Scotia) between which it is lawful under the navigation laws for a vessel not documented under the laws of the United States to carry merchandise: Provided, That the Postmaster General shall not enter into any such contract with any person, firm, corporation, or association which is, directly or indirectly, through any subsidiary, associated or affiliated person, firm, corporation, or association, or as a holding company or through stock ownership, or otherwise, operating, or controlling the operation of, any foreign-flag ships in competition with any American-flag ships. If the Postmaster General hereafter enters into any contract under this title for carrying mail and the holder of the contract thereafter violates the terms of this proviso, said contract shall thereupon become null and void. The Postmaster General shall submit to the Shipping Board the question of the eligibility of each applicant for a mail contract under the terms of this proviso; and, if after the award of such a contract, any question arises as to whether the holder of such a contract is violating the terms of this proviso, the Postmaster General shall likewise submit such question to the Shipping Board. The Shipping Board shall determine and certify to the Postmaster General its findings with respect thereto. Such findings and certification by the Shipping Board shall be conclusive upon all parties. He shall include in such contracts such requirements and conditions as in his best judgment will insure the full and efficient performance thereof and the protection of the interests of the Government. Performance under any such contract shall begin not more than three years after the contract is let, and the term of the contract shall not exceed ten years. For many years prior to the commencement of the World War an average of only about 10 per cent of our foreign commerce was carried in American ships, we being dependent upon foreign-flag ships for the transportation of 90 per cent of our commerce. The extreme gravity of such a situation became acutely manifest during the World War, when the bulk of the foreign-flag ships were withdrawn from the carriage of American commerce, either to meet the needs of the nations whose flags they were flying or to prevent capture or sinking on the high seas. Even before the United States became involved in the World War our foreign commerce suffered immeasurably because of such a situation. After we entered the war the situation became serious indeed, as we were wholly without adequate means to transport our soldiers, supplies for their maintenance, equipment, munitions, etc. The United States could not requisition the ships of other nations, although, of course, we could seize the few ships of enemy nations which had been interned in our ports. In order to meet the precarious situation then existing and impending, the Congress enacted the shipping act, 1916, in September, 1916. Thereupon, the United States engaged in a program of ship purchase and construction unparalleled in the world's history; merchant ships were the crying need of the hour. However, our Government was compelled to pay exorbitant war prices for the purchase and construction of ships. As a result of this program, after the World War our Government was the possessor of a tremendous number of merchant ships, and the major portion of our foreign commerce was being carried in American bottoms. In order to utilize these ships and "to provide for the promotion and maintenance of the American merchant marine," the Congress enacted the merchant marine act, 1920. Section 1 of said act con tained a declaration of policy as follows: That it is necessary for the national defense and for the proper growth of its foreign and domestic commerce, that the United States shall have a merchant marine of the best equipped and most suitable types of vessels sufficient to carry the greater portion of its commerce and serve as a naval or military auxiliary in time of war or national emergency, ultimately to be owned and operated by private citizens of the United States; etc. |