her modes of transportation with larger investments but with smaller les to play in terms of either our defense or the balance of payments. Maritime independence makes sense, any way you look at it. The eation of this new agency would free it from the bureaucratic redtape which it is now enmeshed. A new agency would be able to formulate workable maritime program-both for shipping and shipbuilding. nd the very act of creating a new agency would be a signal-to the oviets who are challenging us, and to the American people who rely a our merchant marine that at long last we intend to work out a rogram that will put us back in a position of world dominance in ipping and shipbuilding. This kind of action is long overdue, Mr. Chairman, for, as I have id, we have reached the crisis stage. Unless we move forward with he creation of this new agency-as part of this committee's overall oal of revitalizing our merchant marine-we'll be swept from the eas by the Soviet fleet. This is the only way that we can solve our critical maritime shortages. The CHAIRMAN. The subcommittee certainly appreciates your fine tatement. Our next witness is Mr. Page Groton, director of the Boilermakers & ron Shipbuilders Marine Council. STATEMENT OF PAGE GROTON, DIRECTOR, BOILERMAKERS & IRON SHIPBUILDERS MARINE COUNCIL; ACCOMPANIED BY HAROLD J. BUOY, ASSISTANT TO THE PRESIDENT, BOILERMAKERS & IRON SHIPBUILDERS MARINE COUNCIL Mr. GROTON. The gentleman sitting on my left is Harold J. Buoy, assistant to the international president, and he is our legislative representative here in Washington. Mr. Chairman and members of the committee, my name is Page Groton. I am the director of the Boilermakers & Iron Shipbuilders Marine Council, which represents the shipbuilding division of the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers. My international union represents 145,000 trade unionists, 50,000 of whom work in the shipyards throughout the United States. We represent more shipyard workers than any international union in the country. At the very outset, I wish to pay tribute to Chairman Garmatz and the members of this committee for their vision, courage, and dedication to the American merchant marine and this Nation. I appear here today on behalf of my international union to give our unqualified support to H.R. 159 and the other 103 companion bills which have been submitted to the Congress calling for the creation of an independent Federal Maritime Administration. Although the Secretary of Transportation, Alan S. Boyd, indicated before another congressional committee that support for an independent maritime agency by the unions was only a bargaining ploy, I can speak for this union without fear of contradiction when I say that this is not so. Our union has never, by either word or deed, wavered for one moment in its determination to fight for passage of legislation which would create an independent Federal Maritime Administration. This committee has our full support. I might add that in December 1965, the Sixth AFL-CIO Con-titutional Convention adopted resolution 217, which outlined labor's united determination to work for development of Government programs to revitalize the U.S. merchant marine, including the reestablishment of an independent Maritime Administration with sole power to formulate maritime policies. The AFL-CIO Executive Council, at its August 1966 meeting in Chicago, reaffirmed its strong support for efforts to establish an independent agency. The council declared: "To present the essential needs of this vital industry from being continually ignored and submerged, and to make possible the steps necessary to its revival, the responsibility must be placed in an agency which has the status and authority necessary for the performance of its duties." To my knowledge, there has been no change in this official position. The Maritime Trades Department Executive Board reaffirmed its support for the pending legislation at its February 1967 meeting and urged increased efforts by its 35 affiliates to win congressional approval of legislation setting up an independent Maritine Administration. Mr. Chairman, for the record, I would like to submit a document entitled "Official of the AFL-CIO on American Merchant Marine." Included in it is the full text of resolution 217 and the full text of the statement that I have just mentioned made by the AFL-CIO Executive Board in Chicago. The CHAIRMAN. That is similar to the one that Mr. Hall had the other day? Mr. GROTON. No, sir. I am not sure but I will submit this for the record, and if the committee would desire copies, I can furnish then. The CHAIRMAN. If it is not a duplication, we will put it in th record. (The document follows:) RESOLUTION No. 217 ADOPTED AT AFL-CIO SIXTH CONSTITUTIONAL CONVENTION, SAN FRANCISCO, CALIF DECEMBER 9-15, 1965 AMERICAN MERCHANT MARINE AND MARITIME POLICY Whereas the Merchant Marine Act of 1936 sets forth the intent of Corg that the United States shall have an American-flag merchant fleet capa carrying a substantial portion of our waterborne commerce and of serving 14 a naval or military auxiliary in time of war or national emergency. Whereas despite the intent of the 1936 Act, our American-flag merchant mar has continued to decline in terms of the number of ships, in terms of the jem centage of our cargoes carried by these vessels, and in terms of job opportu for merchant seamen, shipbuilders and other workers in the maritime d As a result, the American merchant marine today cannot meet the criteria the Merchant Marine Act; it is not adequate to fulfill its responsibilities as arm of our national defense, a factor in our economy or as a productive $37 of America's position of world leadership. Whereas this is being most strikingly demonstrated in the current Viet emergency in which, as a result of increased shipping needs, our Govern has turned to foreign flag ships, not only to fulfill its commercial commit but to carry military cargoes as well. 8 Whereas the decline of the American flag fleet has taken place largely because he executive departments and agencies of the Federal Government have failed implement the Congressional mandate set forth in the 1936 Act, and because dgetary expediencies, rather than national need, have been allowed to domate maritime programs. Whereas the Soviet Union meanwhile-recognizing the importance of a strong erchant marine to its economic, political and strategic objectives--has been oving rapidly to control the oceans and trade routes of the world, and within few years is expected to surpass the United States as a maritime power in all eas-passenger liners, freighters, dry bulk carriers and tankers. Whereas to meet this crisis in U.S. maritime, and to assure that this nation ill have an adequate merchant marine, the President's Maritime Advisory ommittee consisting of representatives of labor, management and the publicas proposed a significant expansion of our merchant marine. Meanwhile, howver, a so-called Interagency Maritime Task Force report, prepared by repreentatives of the same Federal departments and agencies which have been argely responsible for the decline of our fleet is being circulated. Whereas the Task Force Report outlines a program which is based primarily n budgetary considerations, calls for a restriction of our merchant marine, nd the elimination of major existing safeguards of American flag shipping nd shipbuilding. Proponents of the report have given strong evidence that they vill attempt to have their views adopted by the President and the Congress is the new national maritime program which the President has indicated he vill announce, probably some time early next year. Resolved, The AFL-CIO reaffirms its support of a strong U.S. flag merchant narine, citizen-owned, citizen-manned and American-built, adequate to the needs of our country in peace and in defense emergencies and, therefore: 1. Endorses the report of the President's Maritime Advisory Committee, calling for a significant expansion of the American-flag merchant fleet. 2. Condemns the report of the Interagency Maritime Task Force as dictated only by shortsighted budgetary considerations and inadequate to the national need. 3. Calls for a Congressional investigation to determine the actual state of readiness of the U.S. naval and merchant fleets. 4. Calls for continued efforts to alert Congress to the Soviet maritime menace and to obtain revitalization of the American-flag fleet as rapidly as possible to meet this threat. 5. Calls upon the State Department to re-evaluate its position and support legislation to bar from U.S. commerce foreign-flag vessels which have been trading with North Viet Nam. 6. Calls upon the President and the Congress to resist and reject pressures to eliminate the requirement that at least 50% of the wheat and other grains sold to the Soviet nations be carried in American-flag ships and to assure strict enforcement of all cargo preference requirements. 7. Calls upon the President and the Congress to reject any "Built Abroad" philosophy regarding the building of American-flag merchant vessels and to preserve and strengthen regulations designed to safeguard American-flag, American-built shipping. 8. Supports a naval construction program in U.S. shipyards to assure our continued superiority as the world's leading naval power. 9. Calls on Congress to extend the jurisdiction of the NLRB to cover the crews of run-away flag vessels in American Commerce. 10. Calls for continued efforts to alert Congress and the public to the need for protecting the passengers and crews from hazardous conditions on run-away flagships, such as existed on the ill-fated Yarmouth Castle and to enact pending legislation to reserve crews operations out of U.S. ports to American flag vessels, unless unavailable, and to regulate any participation of foreign flag vessels in these trades by requiring them to comply with U.S. safety standards. 11. Calls upon Congress and the appropriate Federal departments and agencies to enact and implement such measures as will restore the domestic merchant fleet, including those vessels in the coastwise and intercoastal trade, on the Great Lakes, and on our rivers and inland waterways and reaffirm our opposition to any attempt to destroy the protection afforded to domestic shipping by the Jones Act. 12. Supports legislation presently pending in Congress to protect our fishing industry, by extending our present territorial limits from the present three miles to twelve miles. 13. Urges the Government to exert its efforts to bring about early ratifinte by such nations as are necessary to put into full force and effect the Convent on Fishing and Conserving the Living Resources of the High Seas, as adopted the United Nations Conference on the Law of the Sea, held at Geneva, Switze land, February 4, to April 27, 1958. 14. Calls for introduction in Congress of legislation to increase U.S. carrag of our waterborne foreign commerce to the level called for by the Marita Advisory Committee and support the building in U.S. yards of an adequate em of vessels to achieve this purpose. 15. Affirms our opposition to runaway flag operations and calls for the comfor scrapping of the so-called "effective control" concept, and any policies ple reliance on foreign flag ships for the vessel strength essential to U.S. defense economic requirements. 16. Supports moves to re-establish the Maritime Administration as an a pendent agency, outside of the Department of Commerce, and to centralize administration of the cargo preference laws in the Martime Administration 17. Supports members of Congress who favor a stronger merchant marine a calls upon the Committee on Political Education of the AFL-CIO to coopera this endeavor by including votes on maritime issues in their standards for de mining support or opposition to Congressional candidates, and to urge cooperation of local, central, and state bodies, as well as the various AFL departments, in order to achieve this objective. STATEMENT BY THE AFL-CIO EXECUTIVE COUNCIL ON INDEPENDENT MARITY AGENCY, AUGUST 24, 1966, CHICAGO, ILL. Today the American merchant marine is being called upon to meet a v situation for the third time in 25 years. Owing to the neglect of this indus by the government since the end of World War II and the failure of the Def Department to foresee and admit need for merchant ships to transport tr and supplies across the seas, the condition of the merchant fleet, its support. shipyards and available skilled manpower have reached the point of crisis. Merchant shipping has played a vital part in American history. Today 25 result of short-sighted policies on the part of government officials with no u standing and sympathy with the significance of commercial seapower we la fallen to third-rate status among the maritime nations. This neglect, which gravely threatens the security of the nation and the m tenance of our overseas commitments, would continue if the Maritime A istration is permitted to be buried in another government department. F conflicting and competing interests, whether Transportation or Commerce. prevent the essential need of this vital industry from being continually ig and submerged, and to make possible the steps necessary to its revival responsibility must be placed in an agency which has the status and auth necessary for the performance of its duties. We therefore strongly support effort to establish an independent maritime agency. AFFILIATES The Journeymen Barbers, Hairdressers and Cosmetologists' International Ta of America International Brotherhood of Boiler Makers, Iron Ship Builders, Blackst Forgers and Helpers United Brotherhood of Carpenters and Joiners of America United Cement, Lime and Gypsum Workers International Union International Chemical Workers Union The Commercial Telegraphers' Union Distillery, Rectifying, Wine and Allied Workers' International Union of Amer International Union of Dolls, Toys, Playthings, Novelties and Allied Products the United States and Canada, AFL-CIO International Brotherhood of Electrical Workers International Association of Fire Fighters International Brotherhood of Firemen and Oilers American Federation of Grain Millers ternational Association of Bridge and Structural Iron Workers borers' International Union of North America HpFL-CIO Laundry and Dry Cleaning International Union international Leather Goods, Plastics and Novelty Workers Union ternational Longshoremen's Association AFL-CIO nternational Association of Machinists and Aerospace Workers Mirational Marine Engineers' Beneficial Association Mamalgamated Meat Cutters and Butcher Workmen of North America ffice and Professional Employees International Union il, Chemical and Atomic Workers International Union rotherhood of Painters, Decorators and Paperhangers of America [nited Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada nternational Brotherhood of Operative Potters Brotherhood of Railway and Steamship Clerks, Freight Handlers, Express and Station Employes Retail Clerks International Association leafarers International Union of North America Sheet Metal Workers International Association American Federation of State, County and Municipal Employees Jpholsterers' International Union of North America Mr. GROTON. I would call this substantial support, wouldn't you? As you knowledgeable gentlemen know, better than I, the Merchant Marine Act of 1936 which was passed by the 74th Congress and signed by President Franklin D. Roosevelt on June 29, 1936, is the basic document covering the present U.S. maritime policy. I might state here most emphatically that no President since F. D. R. has supported the maritime industry to the degree the public interest demands. To implement this policy, Congress, in their wisdom, created an independent and autonomous U.S. Maritime Commission to formulate and administer maritime programs. From 1936 to 1950, the Commission initiated a long-range shipbuilding program to provide 500 new ships within 10 years. They pioneered in the development of the type C cargo vessel and they authorized the building of the passenger liner SS AMERICA. This far-sighted program resulted in our shipyards having built over 100 vessels by the outbreak of World War II. It also meant that our yards were in a position, manpowerwise, to perform the tremendous task they were called on to do during World War II to build ships for our use and for the allies as well. Not counting the war years, these were years of growth and expansion for the American merchant marine. The ships built during this period constitute the the backbone of our present U.S.-flag fleet. Unfortunately, Executive reorganizations in 1950 and again in 1961 have whittled away the independence of the Maritime Commission. The Maritime Administration has been buried in the Department of Commerce, where final authority for the promotion of the merchant marine rests with the Secretary of Commerce. Lacking independent authority, Maritime is forced to compete with the other programs administered by Commerce. The Maritime Subsidy Board no longer functions independently as intended by Congress. Its decisions are subject to review and veto by the Secretary of Commerce. The American merchant marine is obligated to subsist on mere crumbs from the Commerce budget. As a result, it went into a decline from which it has never recovered. |