TABLE 31.-Passengers arrived in the United States, by sea and air, from foreign countries, by country of embarkation, year ended June 30, 1960 Continued TABLE 32.-Passengers departed from the United States, by sea and air, to foreign countries, by country of debarkation, year ended June 30, 1960 [Exclusive of Canadian travel over land borders] TABLE 32.-Passengers departed from the United States, by sea and air, to foreign countries, by country of debarkation, year ended June 30, Country of embarkation By sea and air 1960 Continued By sea By air Senator BARTLETT. Do you have some figures? Mr. STAKEM. The chief of our trade routes has handed me a record which he has compiled which shows the cruise travel between the United States and specific foreign areas, and he has for 1959 departures a total of 143,561. Of that the U.S.-flag carried 16,673; foreignflag carried 126,888. For the year 1960 we have a total departure of 146,464, with the U.S.-flag carrying 19,341, and foreign-flag ships carrying 127,123. Senator BARTLETT. Foreign-flag carriers dominate this trade. Mr. GRINSTEIN. Álso the American percentage would remain constant while the foreign-flag percentage increased? Mr. STAKEM. Yes. There was an increase in just that 1 year from about-well, it is only about 500; 126.8 to 127.1. Senator BARTLETT. This is, in your opinion, because the foreign ships are available and are dispatched on these cruises and there aren't a corresponding number of American-ship passengers available? Mr. STAKEM. That is correct, Senator. Senator BARTLETT. You said before, as I recall, that you believe that if U.S. passenger ships were available, the American public would use them? Mr. STAKEM. Would support them; yes, I believe. Senator BARTLETT. Would this possibly turn into an accounting problem? Mr. STAKEM. No more than our accounting for operating differential subsidy. Senator BARTLETT. Reference was made to SS America being laid up because there weren't enough passengers. Is a voyage such as that terminated by the owner on his own motion, or does permission first have to be had from the Federal Maritime Board? Mr. STAKEM. The schedule of all ships that are operating under differential subsidy contracts must be submitted to the Board and are approved by the staff under delegated authority from the Board. Senator BARTLETT. Is there any danger, in your opinion, Mr. Chairman, that if this bill were enacted into law the removal from the present trades of U.S.-flag carriers, thus lessening frequency of service, would either divert American passengers to foreign-flag carriers and this might become a habit or, alternatively, might divert them to another mode of transportation which might become permanent? Mr. STAKEM. Senator, I don't think so. I think it would be the responsibility of the Board to see to it that the required service of the operator was adequately served and this would be one of the findings that the Board would make in connection with its approval of a particular cruise. Senator BARTLETT. Has anything such as this ever been done before, or does this constitute a proposal for an advance to a sort of a New Frontier? Mr. STAKEM. I would put it in the New Frontier class, Senator, because it seems to me that we are a little bit behind the foreignflag operators. They have recognized the lucrativeness of this traffic. They have gotten into it very strongly, as the figures that we have used would indicate, and I think we are just a little bit behind. It is time we caught up. Senator BARTLETT. You have already stated that you do not believe that any hurt would be done to those operators in the trades now? Mr. STAKEM. That I believe, Senator. I do not think that there would be serious adverse effects to the operator in the trade, and it would be-in my estimation-the responsibility of the Board to make sure that no one was hurt from the American side. Senator BARTLETT. Do you know, for example, Chairman Stakem, if Grace Line is now operating at capacity or near capacity during the cruise season? Mr. STAKEM. I may have those figures, Senator. Just one second. Suppose I submit them for the record at this point as to what the utilization of the Grace ships has been during what we consider to be the cruise season. Senator BARTLETT. Very well. Thank you. (Subsequently, the following letter and statistics were received by the Board:) Hon. WARREN G. MAGNUSON, FEDERAL MARITIME BOARD, Chairman, Subcommittee on Merchant Marine and Fisheries, DEAR MR. CHAIRMAN: At the hearing before the Subcommittee on Merchant Marine and Fisheries on S. 677, we were requested to furnish information with respect to the proportion of cruise passengers on cruises beginning in the United States which is carried on American-flag vessels, and the utilization of the Grace Line ships Santa Paula and Santa Rosa. This information is $tached Sincerely yours, THOS. E. STAKEM, Chairman. se tracet from the United States to specified foreign areas for fiscal years ended June 30, 1959 and 19601 |