located in this island. Pearl Harbor is not only adequate as a berth for our entire fleet, but there we have the refueling equipment, oil stores, dry dock, and repair depot so essential to our naval operations in the Pacific. The Navy Department also has on this island its airport known as Luke Field, and there is now in process of construction thereon the new Army air base, Hickam Field. In addition to these two fine airports, there is another, Wheeler Field, out at Schofield Barracks. Then there is the headquarters post at Fort Shafter, adjoining which is Tripler General Hospital and the ring of forts surrounding Honolulu Harbor and city, Forts Kamehameha, Armstrong, De Russy, Barrette, Weaver, and Ruger. In view of the strategic location of the Hawaiian Islands from a standpoint of national defense, particularly in the protection of our western coast and the military and naval establishments we have on Oahu of a permanent character, there is no reason whatsoever to believe that the largest and best equipped Army post of our Nation should be denied a permanent and suitable post-office building. Every other building on the reservation is of permanent construction. The whole plan was designed with the utmost care by the high command of the architects of the Army. This plan was carried out by Maj. Carl H. Jabelonsky as the constructing quartermaster in charge. He is one of the best officers ever detailed to this type of work and has made an international reputation for himself in these large construction projects Schofield Barracks, Fort Benning, and Fort McClellan. Everything on the post is in architectural harmony save the postoffice building. This temporary shack, built to serve temporarily and with no thought of use longer than during the period of construction, has been continued in service for 25 years. There are planks in the main walls so rotten that you can push your fist through them without being scratched, and it has been repaired a thousand times. The only extenuating excuse for this shameful postal situation is that technically, the land has never been officially transferred from the jurisdiction of the War Department to the jurisdiction of the Post Office Department. This has now been remedied, as far as it may be, by appropriate action of the two Departments. All that remains to be done is-so the legal advisers of these Departments hold-is to have congressional sanction for the transfer. This is given in the pending bill. This project has the approval of the Army, the Post Office Department, the Treasury Department, and of everyone else with whom I have discussed it. I know of no opposition whatsoever-in fact I can conceive of none. Please allow me most earnestly to urge upon you the importance of providing necessary appropriation for the construction of a post-office building at Schofield Barracks, the need of which is so tragic. American boys from every State in the Union have to stand in line out of doors in order to buy money orders to send home every pay day. It is remarkable how much money-order business this little station does. Almost every dollar of this comes home to the relatives of those boys, here in continental United States, yet we punish them by our lack of equipment and seek to prevent them from doing this laudable thing. Because of the cost of delivering materials so far away from the point of manufacture and because of the importance of this building, I am urging that an appropriation of not 1 cent less than a hundred thousand dollars be made for this purpose. I hope and pray that you gentlemen will see that this relief is given as speedily as possible to the longsuffering patrons of this branch post office. Every month of delay is adding insult to injury. TUESDAY, JUNE 15, 1937. UNITED STATES MARITIME COMMISSION (See p. 564) STATEMENTS OF JOSEPH P. KENNEDY, CHAIRMAN; REAR ADMIRAL EMORY S. LAND, COMMISSIONER; MAX O'RELL TRUITT, GENERAL COUNSEL; A. H. HAAG, ACTING DIRECTOR OF RESEARCH; COMMANDER H. L. VICKERY, ASSISTANT TO COMMISSIONER LAND; JOHN W. SLACKS AND C. D. GIBBONS, DIVISION OF FINANCE CONSTRUCTION FUND Mr. WOODRUM. We have before us this morning in House Document No. 265 a supplemental estimate of appropriation for the United States Maritime Commission, amounting to $10,000,000, and in addition authority to contract for additional construction amounting to $150,000,000. Mr. Kennedy, the Chairman of the Maritime Commission, is present, with members of his staff. We shall be glad to have a statement from you at this time, Mr. Kennedy. Mr. KENNEDY. The United States Maritime Commission, in accordance with the express mandate of Congress contained in the 1936 act, is about to launch a long-overdue program for the rehabilitation of the American merchant marine. It is unnecessary for me to describe the doleful condition of our merchant marine or to repeat the frequently discussed danger to American commerce of having to reply upon a fleet of obsolete and inadequate merchant vessels, especially in times of emergency. Most of our ships are so old that, on the basis of a 20-year life which is declared by the statute to be the estimated economic life of a ship, 85 percent will be ready for retirement in 5 years. From a cost of maintenance and speed point of view and therefore from the angle of competition, most of the American merchant vessels are ready for retirement today. I would like to give you a short table, a sort of thumbnail view of the present status of the American merchant marine. NUMBER, TONNAGE, AND AGE OF PRESENT AMERICAN MERCHANT MARINE Of the Government-owned fleet, there are 235 ships, with a tonnage of 1,400,000. One hundred percent of these vessels will be 20 years. old by 1942. Of the domestic fleet there are 487 ships, with a tonnage of 2,182,000, 91 percent of which will be 20 years old by 1942. The tanker fleet numbers 341 ships, with a tonnage of 2,416,000, 88 percent of which will be 20 years old by 1942. 148745-37-15 The foreign-trade fleet numbers 381 ships, with a tonnage of 2,464,000, 85 percent of which will be 20 years old by 1942. Of the 235 vessels in the Government-owned fleet, 39 are active and 196 are inactive. Ships of 10-knot speed predominate. Of the domestic fleet of 487 ships, speeds of 10 and 11 knots predominate. Of the tanker fleet, 90 percent have speeds of less than 12 knots. Of the foreign-trade fleet, ships of 10-knots speed predominate. Of the foreign ocean-mail route ships, numbering 274, with a tonnage of 1,800,000, speeds of 10 and 11 knots predominate. I have these figures in a table, which I will submit for the record. (The table referred to is as follows:) Number Tons Percentage 20 years old by 1942 Government-owned fleet 1. Domestic fleet. Tanker fleet 3 Foreign-trade fleet Total... 1 39 active. 196 inactive. Ships of 10-knots speed predominate. Ships of 10- and 11-knots speed predominate. 390 percent of these have speed of less than 12 knots. Ships of 10-knots speed predominate. Foreign ocean mail route ships, 274 tonnage, 1,800.000. Speed of 10 and 11 knots predominate. Mr. KENNEDY. These old and slow ships are unable successfully to meet foreign competition, even with the most liberal subsidies. New and faster vessels would be more economical to operate, attract more and better-paying cargo, and require less aid from the Government. The Nation's prestige, defense, trade, and income would all benefit from the new ships. We would have a prosperous as well as a competitive merchant marine in the foreign trade. It is estimated that a cargo ship-replacement program sufficiently comprehensive to rehabilitate our freight service operating from North Atlantic, South Atlantic, Gulf, and Pacific coast ports would necessitate an annual outlay of approximately $80,000,000 for about 5 years. Replacement of certain combination passenger and cargo ships in the important east coast South American trade and in other essential services would increase this amount $25,000,000 to $35,000,000 each over the first 2 years. Ship construction in American yards has been almost negligible in the past few years. With the exception of oil tankers there was not a single sea-going vessel of the passenger, combination, or general cargocarrying type under construction in an American shipyard in 1936, for either the domestic or foreign trade, and for the fifteenth consecutive year not a single seagoing ship of the general cargo-carrying type has been built in an American shipyard for foreign trade, and only a very few during the same period for domestic seagoing trade. NUMBER AND TYPE OF VESSELS PROPOSED TO BE BUILT The proposed item of appropriation will provide the Commission with the necessary funds to take a long step forward in rebuilding the American merchant marine and reestablishing its prestige. We have, after careful thought, prepared a program of construction for the coming fiscal year, which I submit to you for your consideration. Our plan is to start with 95 ships, at a cost of approximately $256,440,000. Approximately $79,000,000 of this total will be disbursed in the fiscal year 1938. The Commission has approximately $69,000,000 available at the present time for ship construction. $10,000,000 is to be secured by the requested appropriation. It is estimated that private American shipowners will make initial payments of approximately $27,440,000 on certain of the vessels which will be built under title V of the 1936 act. Disbursement of the remainder of the total anticipated expenditure, amounting to $150,000,000, will not be begun until the fiscal year 1939, but we expect to make contractual commitments covering this amount in the 1938 fiscal year. The following is a list of the number and types of vessels which we plan to build: There is an urgent need for new tankers, not only to meet foreign competition in speed, but also to provide a vital naval auxiliary. Construction of the cargo ships will take from 12 to 24 months. The time for constructing the passenger ships will vary from 24 to 36 months. There is a sufficient number of ways in the United States today upon. which to lay down the ships contemplated by this program without expanding existing plants. Additional space is available in present shipbuilding plants if additional ways are needed, and some shipbuilders are in a position to repair unused ways if they are needed. It is contemplated that all of the ships will be laid down by the fiscal year, 1939. Commander Vickery has brought with him some charts which will show the progress which we expect to make from month to month. As a separate exhibit, we are submitting the following tables which show the widespread benefits accruing to the various States as a consequence of the shipbuilding program. MATERIALS OR EQUIPMENT FURNISHED FOR SHIPBUILDING BY THE VARIOUS STATES Alabama.-Iron ore, limestone, coal, coke, pig iron, steel, cotton, yellow pine. Arizona.-Copper ore, silver, lead, zinc, leather, wool. Arkansas. Ash lumber, yellow pine, cotton, petroleum, bauxite. California. Steel, machinery, hard and soft woods, petroleum, red lead, insulating paper, glassware, asbestos, wool, cement. Colorado Copper ore, lead, silver, zinc, wool. Connecticut.-Hardware, cutlery, silverware, chain, pipe fittings, clocks and gauges, brass products, lighting fixtures, tools, valves and fittings. Delaware. Steel, iron castings, machinery, anchors, clay products. Georgia.-Cotton, yellow pine, turpentine, canvas. Illinois. Iron ore, limestone, coal, coke, petroleum products, hardware, valves and fittings, paints. Indiana.-Limestone, coal, cement, oak lumber, alcohol, pumps, electric motors. Iowa.-Coal, clay products, firebrick, cement, gypsum, furniture. Kentucky. Hardwoods, coal, petroleum, firebrick, leather, hemp. Maine.-Lumber, clay products, wood pulp, paper, winches, windlasses, steering gears. Maryland.-Coal, iron rails and pipe, steel plates, steel wire, brass and copper tubes and sheet, oakum, canvas, tin plate. Massachusetts. Turbines, electrical machinery, plumbing fixtures, leather belting, rugs and draperies, manila rope, navigating instruments, insulating paper, pumps. Michigan.-Iron ore, limestone, cement, copper products, white pine, plywood, hardware, tools, furniture, paints. Minnesota.-Iron ore, pig iron, clay products, white pine, flax, linseed. Missouri.-Machinery, lead, zinc, cement. Montana.-Copper ore, zinc, silver, manganese, wool, lumber, leather. Nevada.-Copper, silver, gypsum, lead, zinc, manganese, silica, wool. New York.-Machinery, manufactures, textiles, wood pulp, rope, telephones, electrical apparatus, glassware, cork, asbestos. North Carolina.-Cotton goods, canvas, lumber, copper, aluminum, mica, furniture, veneers. North Dakota.-Clay products, coal, wool, hemp, linseed. Ohio.-Iron pipe, steel products, limestone, rubber, machinery, paints, varnishes, anchors and chain, hardware and tools, heaters, evaporators. Oklahoma.-Cotton, lead, zinc, fuel oil, lubricants. Oregon. Oregon pine, spruce, cedar, machinery, copper wire, cement. Pennsylvania.-Coal, steel products, cement, glass products, manufactures, hardware, tools, machinery, refrigerating apparatus, paints. Rhode Island.-Clay products, lime, graphite, textiles, machinery, hand tools. South Carolina.-Cotton products, naval stores, lumber, canvas. South Dakota.-Cement, wool, hemp, linseed. Tennessee. Coal, iron ore, lumber, machinery, cotton, enamelware. Vermont. Machinery, lumber, marble, lime, asbestos, plywood, paints, tools, steel wire. Virginia.-Coal, iron ore, sheet aluminum, emery, mica, machinery, office supplies. Washington.-Oregon pine, cedar, spruce, cement, machinery, wire rope, veneers. West Virginia.-Coke, coal, oils, porcelains, steel castings, lumber. (Source: National Council of American Shipbuilders.) |