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Sigmon, Carl C., president, United Automobile Workers, Local 738,
letter dated July 21, 1966---

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217

220

Sopko, Frank T., president, Local 2609, United Steel Workers of
America, telegram dated June 29, 1966_

Stevens, Matthew J., executive secretary-treasurer, Essex-West
Hudson Labor Council, AFL-CIO, letter dated July 6, 1966-
Stoddard, A. P., president, Greater New Orleans AFL-CIO, letter
dated June 27, 1966-

Vickery, E. D., national president, Propeller Club of the United

States, letter dated July 29, 1966, enclosing position of the Propeller

Club on independent maritime agency.

Wares, Stanley, secretary, port council, Cleveland Port Council,
Maritime Trades Division, AFL-CIO, letter dated June 24, 1966--

Williams, Marvin L., secretary-treasurer, Washington State Labor

Council, AFL-CIO, letter dated July 21, 1966--

Wilson, David, recording secretary, Local 2609, United Steelworkers

of America, telegram dated June 29, 1966–

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46

INDEPENDENT FEDERAL MARITIME ADMINISTRATION

WEDNESDAY, JULY 20, 1966

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON MERCHANT MARINE

OF THE COMMITTEE ON MERCHANT MARINE AND FISHERIES,

Washington, D.C. The subcommittee met at 10:15 a.m., pursuant to call, in room 1334, Longworth House Office Building, Washington, D.C., Hon. Edward A. Garmatz (chairman of the committee) presiding.

The CHAIRMAN. The meeting will please be in order.

Today, we commence hearings on a number of bills introduced by almost one-half of the members of this committee and a number of other Members of the House.

(The bills and agency reports follow :)

[H.R. 11355, H.R. 11356, H.R. 11364, H.R. 11416, H.R. 11419, H.R. 11549, H.R. 11696, H.R. 11820, H.R. 11826, H.R. 16263, 89th Cong., 1st sess.]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as "The Federal Maritime Act of 1965".

SEC. 2. Section 201 of title II of the Merchant Marine Act, 1936, is amended to read as follows:

"SEC. 201. (a) There is hereby established an agency to be known as the Federal Maritime Administration, hereafter in this section referred to as the ‘Administration', which shall be an independent agency not under any other department, agency, or instrumentality of the executive branch of the Government or under the authority of the head of any such department, agency, or instrumentality.

"(b) There shall be at the head of the Administration a Federal Maritime Board, hereafter in this section referred to as the 'Board'. The Board shall be composed of three members who shall be appointed by the President by and with the advice of the Senate. Of the first three members of the Board appointed under this section one shall be appointed for a term expiring on June 30. 1967, one for a term expiring on June 30, 1968, and one for a term expiring on June 30, 1969. Their successors shall be appointed for terms of four years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the member of the Board whom he succeeds. Upon expiration of his term of office a member of the Board shall continue to serve until his successor shall have been appointed and shall have qualified. Not more than two of the members of the Board shall be appointed from the same political party. A vacancy in the Board shall be filled in the same manner as the original appointment. A vacancy in the Board, so long as there shall be two members in office, shall not impair the power of the Board to execute its functions. Any two of the members of the Board shall constitute a quorum for the transaction of the business of the Board and the affirmative votes of any two members of the Board shall be sufficient for the disposition of any matter which may come before the Board. The President shall from time to time designate one of the members to be Chairman of the Board. The Chairman shall receive a salary at the rate of $28,500 per annum and each of the other members of the Board shall receive a salary at the rate of $27,000 per annum.

1

"(c) There are hereby transferred to the Board

"(1) all functions of the Secretary of Commerce conferred upon him b Reorganization Plan Numbered 21 of 1950 and confirmed as being vested i him by section 202(a) of Reorganization Plan Numbered 7 of 1961.

"(2) all functions of the Secretary of Commerce transferred to him b section 202 (b) of Reorganization Plan Numbered 7 of 1961.

"(d) The Chairman of the Board shall be the chief executive and administra tive officer of the Administration. In executing and administering on behal of the Board its functions, the Chairman shall be governed by the policies, regula tory decisions, findings, and determinations of the Board. If a majority o the Board determines at any time that the Chairman is not being governed b the policies, decisions, findings and determinations of the Board, then by majorit vote the Board may divest the Chairman of the authority given him by the firs sentence of this subsection and thereafter such authority shall be vested in th Board."

SEC. 3. Section 201 (b) shall apply to the members, officers, and employees o the Federal Maritime Administration and the Federal Maritime Board created by section 201 of the Merchant Marine Act, 1936, as amended by the second section of this Act.

SEC. 4. So much of the personnel, property, records, and unexpended balance of appropriations, allocations, and other funds employed, used, held, available, o to be made available, in connection with the functions transferred to the Federa Maritime Board by the amendment made by the second section of this Act as the Director of the Bureau of the Budget determines necessary, shall be trans ferred to the Federal Maritime Administration created by the amendment made by the second section of this Act.

SEC. 5. Sections 201, 203, and 204 of part II of Reorganization Plan Numbered 21 of 1950, and part II and section 303 (c) of Reorganization Plan Numbered 7 of 1961, are hereby superseded by this Act and the amendments made by this Act.

SEC. 6. Nothing in this Act or any of the amendments made by this Act shall be deemed to affect (1) the Federal Maritime Commission established by part I of Reorganization Plan Numbered 7 of 1961, or (2) any of the functions of such Commission.

SEC. 7. This Act, and the amendments made by this Act, shall take effect sixty days after enactment.

[H.R. 11704, 89th Cong., 1st sess.]

A BILL To amend title II of the Merchant Marine Act, 1936, to create the Federal Maritime Administration, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as "The Federal Maritime Act of 1965".

SEC. 2. Section 201 of title II of the Merchant Marine Act, 1936, is amended to read as follows:

"SEC. 201. (a) There is hereby established an agency to be known as the Federal Maritime Administration, hereafter in this section referred to as the ‘Administration', which shall be an independent agency not under any other department, agency, or instrumentality of the executive branch of the Government or under the authority of the head of any such department, agency, or instrumentality.

"(b) There shall be at the head of the Administration a Federal Maritime Board, hereafter in this section referred to as the 'Board'. The Board shall be composed of five members who shall be appointed by the President, by and with the advice of the Senate. Of the first five members of the Board appointed under this section one shall be appointed for a term expiring on June 30, 1967, one for a term expiring on June 30, 1968, one for a term expiring on June 30, 1969, one for a term expiring on June 30, 1970, and one for a term expiring on June 30, 1971. Their successors shall be appointed for terms of four years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the member of the Board whom he succeeds. Upon expiration of his term of office a member of the Board shall continue to serve until his successor shall have been appointed and shall have qualified. Not more than three of the members of the Board shall be appointed from the same political party. A vacancy in the Board shall be filled in the same manner as the original appointment. A vacancy

in the Board, so long as there shall be two members in office, shall not impair the power of the Board to execute its functions. Any three of the members of the Board shall constitute a quorum for the transaction of the business of the Board and the affirmative votes of any three members of the Board shall be sufficient for the disposition of any matter which may come before the Board. The President shall from time to time designate one of the members to be Chairman of the Board. The Chairman shall receive a salary at the rate of $28,500 per annum and each of the other members of the Board shall receive a salary at the rate of $27,000 per annum.

"(c) There are hereby transferred to the Board

"(1) All functions of the Secretary of Commerce conferred upon him by Reorganization Plan Numbered 21 of 1950 and confirmed as being vested in him by section 202 (a) of Reorganization Plan Numbered 7 of 1961.

"(2) All functions of the Secretary of Commerce transferred to him by section 202(b) of Reorganization Plan Numbered 7 of 1961.

"(d) The Chairman of the Board shall be the chief executive and administrative officer of the Administration. In executing and administering on behalf of the Board its functions, the Chairman shall be governed by the policies, regulatory decisions, findings, and determinations of the Board. If a majority of the Board determines at any time that the Chairman is not being governed by the policies, decisions, findings, and determinations of the Board, then by majority vote the Board may divest the Chairman of the authority given him by the first sentence of this subsection and thereafter such authority shall be vested in the Board."

SEC. 3. Section 201 (b) shall apply to the members, officers, and employees of the Federal Maritime Administration and the Federal Maritime Board created by section 201 of the Merchant Marine Act, 1936, as amended by the second section of this Act.

SEC. 4. So much of the personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, used, held, available, or to be made available, in connection with the functions transferred to the Federal Maritime Board by the amendment made by the second section of this Act as the Director of the Bureau of the Budget determines necessary, shall be transferred to the Federal Maritime Administration created by the amendment made by the second section of this Act.

SEC. 5. Sections 201, 203, and 204 of part II of Reorganization Plan Numbered 21 of 1950, and part II and section 303 (c) of Reorganization Plan Numbered 7 of 1961, are hereby superseded by this Act and the amendments made by this Act.

SEC. 6. Nothing in this Act or any of the amendments made by this Act shall be deemed to affect (1) the Federal Maritime Commission established by part I of Reorganization Plan Numbered 7 of 1961, or (2) any of the functions of such Commission.

SEC. 7. This Act, and the amendments made by this Act, shall take effect sixty days after enactment.

[H.R. 15567, H.R. 15838. H.R. 15910, H.R. 15945, H.R. 16079, H.R. 16098, H.R. 16104, H.R. 16123, H.R. 16147, H.R. 16283, 89th Cong., 2d sess.]

A BILL To amend title II of the Merchant Marine Act, 1936, to create the Federal Maritime Board-Administration, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as "The Federal Maritime Act of 1966”.

SEC. 2. Section 201 of title II of the Merchant Marine Act, 1936, is amended to read as follows:

"SEC. 201. (a) There is hereby established an agency to be known as the Federal Maritime Administration, hereinafter in this chapter referred to as the 'Administration', which shall be an independent agency not under any other department, agency, or instrumentality of the executive branch of the Government or under the authority of the head of any such department, agency, or instrumentality.

"(b) (1) There shall be at the head of the Administration a Federal Maritime Administrator who shall be appointed by the President, by and with the advice and consent of the Senate, who shall receive compensation at the rate of $28,500

per annum.

The Administrator shall be responsible for the exercise of all powers and the discharge of all duties of the agency, with the single exception described in section (3) of this Act. In the exercise of his duties and the discharge of his responsibilities the Administrator shall not submit his decisons for the approval of, nor be bound by the decisions or recommendations of any committee, board or other organization created by Executive order.

"(2) The Administrator shall be a citizen of the United States, and shall be appointed with due regard for his fitness for the efficient discharge of the powers and duties vested in and imposed upon him by this chapter. Previous employment by or previous pecuniary interest in any business or union associated with the maritime industry shall not constitute a bar to appointment as Administrator. "(c) There are hereby transferred to the Administration—

"(1) all functions of the Secretary of Commerce conferred upon him by Reorganization Plan Numbered 21 of 1950 and confirmed as being vested in him by section 202 (a) of Reorganization Plan Numbered 7 of 1961.

"(2) all functions of the Secretary of Commerce transferred to him by section 202(b) of Reorganization Plan Numbered 7 of 1961, except as hereunder provided.

"(3) There shall be in the Administration a Deputy Maritime Administrator, who shall be appointed by the Administrator under the classified civil service and who shall perform such duties as the Administrator shall prescribe. The Deputy Maritime Administrator shall be Acting Maritime Administrator during the absence or disability of the Administrator. Such Deputy Administrator shall at no time sit as a member or acting member of the Maritime Subsidy Board."

SEC. 3. (a) There is hereby established the Maritime Subsidy Board, referred to in this chapter as the Board. The Board shall have complete and final authority to pass upon all matters related to construction differential and operating differential subsidy.

(b) There are hereby transferred to the Board—

(1) all functions of the Secretary of Commerce transferred to him under section 105 (1), (2), (3), (4), and (5) of Reorganiation Plan Numbered 21 of 1950 and confirmed as being vested in him by section 202(b) of Reorganization Plan Numbered 7 of 1961.

(c) The Board shall be composed of: (1) the Federal Maritime Administrator; (2) two members appointed by the President with the advice and consent of the Senate for a term of five years, who shall receive compensation at the rate of $28,000 per annum. Of the members appointed under (2), one shall be appointed for a term expiring on June 30, 1970, and one for a term expiring on June 30, 1971. Their succesors shall be appointed for terms of five years except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the member of the Board whom he succeeds.

(d) The President shall designate one of the three Board members to serve as Chairman of the Board. The office of Chairman of the Board shall thereafter rotate between the members from year to year, beginning on July 1 of each year. (e) Previous employment by or previous pecuniary interest in any business or union associated with the maritime industry shall not constitute a bar to appointment as Board members. During the term of office as a Board member, however, no Board member shall be in the employ of or hold any official relation to any company engaging in the steamship or shipbuilding business or with any union connected with that industry, nor shall he own the stock or bonds of such company, nor shall he have any pecuniary interest therein other than a vested interest in a pension program. Said Board members shall not engage in any other business, vocation or employment during their terms as Board members. (f) A vacancy in the Board, so long as there shall be two members in office, shall not impair the power of the Board to execute its functions. Any two of the members of the Board shall constitute a quorum for the transaction of the business of the Board and concurring votes of any two members of the Board shall be sufficient for the disposition of any matter which may come before the Board. Any Board member may be removed by the President for inefficiency, neglect of duty and malfeasance in office.

SEC. 4. So much of the personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, used, held, available, or to be made available, in connection with the functions transferred to the Federal Maritime Administration and Maritime Subsidy Board by the provisions of this Act as the Director of the Bureau of the Budget determines necessary, shall be transferred to the Federal Maritime Administration and Maritime Subsidy Board.

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