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Additional material submitted by-

Budget Bureau-

Costs and economies of the Department of Transportation___
Department of Transportation, concept of organization and

management, organizational chart included.

Fast deployment logistic ship program_

Major steps in the budget process

Formulation of Executive budget..

Congressional action on appropriations, January-July.
Execution of enacted budget..

Potential economies in the Department of Transportation___

Letter to supplement dissent of H. Lee White dated December
21, 1965

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U.S.-flag participation in foreign trade of the United States,

1960-64, table__

Edwards, Hon. Jack, additional views re report of Government Opera-
tions Committee on Department of Transportation Act.
Garmatz, Hon. Edward A., letter dated June 21, 1966, enclosing
two committee resolutions _ _ _.
Hall, Paul:

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7

Exhibit No. 1.-Present structure of executive transport agencies.
Exhibit No. 2-American merchant marine and maritime policy
adopted by AFL-CIO convention, text of.

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Exhibit No. 3.—Comparison of proposed and present legislation
re status of Maritime Administration..

42

Letter dated July 28 signed by Alfred Maskin enclosing paper
entitled, "Unique Features of the Maritime Industry" ́

224

Communications submitted by-

Allensworth, Ed, Cab Drivers Local 101, San Diego, Calif., telegram
dated June 21, 1961.

216

Ball, Robert G., Jr., president, Local 34, Distillery Workers Union,
letter dated July 11, 1966_ _

220

Calhoon, Jesse M., telegram dated July 20, 1966, and also signed by
Capt. Lloyd W. Sheldon...

44

Casey, Ralph E., president, American Merchant Marine Institute,
Inc., letter dated July 7, 1966.

221

Corbett, Raymond R., president, New York State AFL-CIO, letter
dated June 29, 1966.

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SS A. E. Cornelius, telegram dated August 9, 1966 from crew.
SS Alpena, telegram dated August 9, 1966, from crew..

SS Ben W. Calvin, telegram dated August 10, 1966, from crew mem-
bers..

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215

215

SS F. A. Manske, telegram dated August 9, 1966, from the crew-
SS J. Boland, telegram dated August 9, 1966, from crewmembers-
SS President Johnson, ship letter-telegram dated August 8, 1966,
from captain, officers, and crew.

216

215

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Schaefer, John A., Democratic candidate, house of delegates, First
District, Baltimore, Md., telegram dated August 6, 1966_-
Seal, Chas. R., chairman, Committee on Federal Legislation, North
Atlantic Ports Association, Virginia State Ports Authority, letter
dated July 13, 1966---

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48

Shortle, Robert L., vice president, Mississippi Valley Association,
letter dated July 29, 1966-

210

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

222

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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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.

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"(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. 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

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