IR designates "Regular Meeting"; US designates "Unscheduled Special Meeting"; SS designates "Scheduled Special Meeting."

2 Notice in docket No. R-361 approved.

3 2 letters approved.

Order No. 383 (R-362). Commissioner Brooke ratified action of Commission on June 20, 1969. Order was issued on June 25, 1969 howing all present.

STATEMENT OF DAVID W. OBERLIN, TO BE ADMINISTRATOR OF THE ST. LAWRENCE SEAWAY DEVELOPMENT CORPORATION

Senator MAGNUSON. The next nomination before the committee is David Oberlin of Minnesota to be Administrator of the St. Lawrence Seaway Development Corporation succeeding Joseph H. McCann. Now, is that a term appointment?

Mr. OBERLIN. No, sir. It is at the pleasure of the President.

Senator MAGNUSON. All right. Now the Senator from Minnesota. Senator MONDALE. Mr. Chairman, and members of the committee, I am delighted to be here this morning to introduce and to urge the confirmation of David Oberlin to be the Administrator of the St. Lawrence Seaway Development Corporation.

And I commend the President of the United States for an outstanding appointment in Mr. Oberlin. I have worked closely with him since he became the administrative officer of the Duluth Port Authority in 1967 and before that I have had occasion to work with him when he came to the Congress along with other Great Lakes port directors when he was then with the Toledo Port on matters affecting the St. Lawrence Seaway.

I think it is fair to say that he is regarded as one of the outstanding, if not the outstanding directors of any Great Lakes port.

He has established an outstanding record at the Duluth Port as well as earning the respect and admiration of the people of Minnesota and the Superior community. He has been more than a manager, in the technical sense, of the Duluth Port. He has been one of the thoughtful, sophisticated persons deeply concerned about the future use of the St. Lawrence Seaway. And I think the President could not have found a more outstanding nominee than Mr. Oberlin.

I think the committee knows he now serves as chairman of the American section of the International Association of Great Lake Ports and is director of the American Association of Port Authorities. I think that his nomination, coupled with the creation of the newly established Subcommittee on the Great Lakes under the chairmanship of the distinguished Senator from Indiana, Mr. Hartke, offers what I regard to be a long overdue opportunity to develop some momentum to establish the Great Lakes and the St. Lawrence Seaway as a vital

and growing artery of commerce contributing to the economic development of the upper Midwest and to the growth and development of the Nation at large.

I don't have to tell the acting chairman of this committee that for far too long the St. Lawrence Seaway and our Great Lakes have been treated as a poor cousin.

It is the only federally maintained waterway in the country which imposes any tolls whatever. And in addition to that there have been tolls that have risen up to $17,000 on one occasion upon one ship traveling into and out of the St. Lawrence Seaway. This and many other problems prevent the full use and growth and potential of the St. Lawrence Seaway.

That is why in selecting Mr. Oberlin the President has not only picked an able man but someone whom I think can help the Senate and the Congress and this subcommittee develop the programs and the directions under the able leadership of Senator Hartke, that can give us a chance to reach the potential that we all hope the St. Lawrence Seaway and the Great Lakes possess.

It is with that background that I am delighted to introduce and recommend Mr. Oberlin to this committee.

Senator HARTKE. Thank you, Senator Mondale, for your fine statement and your fine recommendation. Any questions of Senator Mondale?

Senator PEARSON. I thank you very much.
Senator GRIFFIN. A very splendid statement.

Senator HARTKE. Mr. Oberlin, do you have a statement that you wish to give to the committee?

Mr. OBERLIN. I have no statement as such to put in the record. Senator HARTKE. You have submitted your biographical statement which will be made part of the record.

(The biographical statement follows:)

David W. Oberlin, born January 6, 1920, in Duluth, Minnesota.

The President of the United States has nominated Mr. David W. Oberlin to be Administrator of the St. Lawrence Seaway Development Corporation, Department of Transportation.

The St. Lawrence Seaway Development Corporation is a wholly-owned Government corporation that operates under the management of an Administrator appointed by the President, by and with the advice and consent of the Senate. A five-member Advisory Board, nominated by the President and confirmed by the Senate, meets at the call of the Administrator to review the general policies of the Corporation and advise the Administrator in respect to them. The Corporation is also, by its incorporating statute, subject to the direction and supervision of the President, or the head of such agency as he may designate. The Secretary of Transportation now fills this function. The Administrator directs the policy, legislation, and administration of the Corporation under the general supervision of the Secretary of Transportation.

Mr. Oberlin is Chairman of the American Section of the International Association of Great Lakes Ports and Director of both the Seaway Port Authority of Duluth and the American Association of Port Authorities. Since joining the Duluth Port Authority as its chief administrative officer in 1967, Mr. Oberlin has compiled a record of substantially increased revenue and attraction of new industry to port property.

For 11 years prior to joining the Duluth Seaway Port Authority, Mr. Oberlin was a staff member of the Toledo-Lucas County Port Authority. As assistant secretary and fiscal officer for the Toledo, Ohio port, he supervised construction and land development valued at nearly $10 million.

In 1963 Mr. Oberlin played a major role in staff operations leading to a purchase leaseback revenue bond issue of $65 million which brought the assets of the Toledo port agency to nearly $80 million.

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He was named Manager of Trade Development for the Toledo Port in 1964, a position in which he worked closely with Federal matters affecting the Great Lakes maritime industry. His duties included trade development planning, overseas trade promotion and industrial development.

Mr. Oberlin attended the University of Kansas and graduated from the University of Michigan with as B.S. in Engineering.

During World War II, Mr. Oberlin served with the U.S. Submarine Service and was awarded the Silver Star Medal and the Personal Commendation Ribbon. A former Commander in the Naval Reserve, he was recalled to active duty during the Korean Conflict.

Mr. Oberlin's Professional Memberships include: U.S. Chairman-International Association of Great Lakes Ports; Member-Board of Directors-The American Association of Port Authorities and the International Association of Port Authorities; Governor's Representative to Great Lakes Governor's Committee; Rotary Club; Chamber of Commerce.

Mr. Oberlin is married (wife's name is Elinor) and is the father of four children. He lives with his family at 530 North 36th Avenue East in Duluth, Minnesota. Senator HARTKE. Senator Cotton, any questions?

Senator COTTON. Have you submitted a financial statement?

Mr. OBERLIN. Yes, sir. I submitted a financial statement. And I have no holdings which would in any way conflict with my service on this job.

Senator PEARSON. I wish you well, Mr. Oberlin.

Senator GRIFFIN. Well, I certainly want to join the statement that was made by Senator Mondale. Although it took the administration a little too long to settle on your appointment, I think they finally made an excellent appointment.

We are very pleased, those of us who represent the Great Lakes, that you have the background that you do. We are expecting you as a member of the Eastern Establishment that dominates the Transportation Department to use some elbows and knuckles over there to assure that the Great Lakes and the seaway are not discriminated against in the formulation and implementation of transportation policies.

I am convinced that with your background and your interest in the seaway you are going to make every effort in that direction.

Senator HARTKE. Thank you, Senator Griffin. Senator Hart has submitted a letter to the chairman of the committee in which he endorses Mr. Oberlin. He points out the fact that he worked with him over a period of years and knows of his ability, his integrity, his dedication to the furtherance of commerce on the Great Lakes and the seaway. This letter will appear as part of the record of this hearing. (The letter follows:)

Hon. WARREN MAGNUSON,

Chairman, Commerce Committee, U.S. Senate,
Washington, D.C.

UNITED STATES SENATE, Washington, D.C. July 31, 1969.

DEAR MR. CHAIRMAN: Unfortunately, another Committee which I must chair-is meeting this morning. May I, therefore, request that you indicate on my behalf that I am delighted to support the nomination of David W. Oberlin to be Administrator of the St. Lawrence Seaway Development Corporation.

Members of my staff and I have worked with Dave Oberlin over a period of several years. We know at first hand his ability, his integrity, his dedication to the furtherance of commerce on the Great Lakes and the Seaway. In my view, there could have been no finer choice for this position.

My hope is that this nomination will be promptly confirmed by the Senate and that Mr. Oberlin's extensive knowledge of Seaway problems and potentialities will be fully utilized by the Secretary of Transportation.

Thank you, Mr. Chairman.

Sincerely,

PHILIP A. Hart,

Senator HARTKE. Mr. Oberlin, the Great Lakes at this time have a series of problems. Do you look upon this assignment as one of being a sort of a lockmaster?

Mr. OBERLIN. No, sir. If I thought that was the assignment I am afraid I would have little interest in it. I think the problems facing the Seaway and the corporation are many and complex. And it is going to be a real challenge in trying to work out solutions to these problems and to the challenges that lie ahead.

Senator HARTKE. Do you see any special problems or anything in which the Midwestern farmer would have something to gain by virtue of us doing a real good and thorough job in regard to up-dating the whole Seaway and its present operations?

Mr. OBERLIN. The Seaway, of course, is a vital port to the entire Midwest, the farmer as well as the manufacturer. And I think the farmer is faced with a problem of getting crops into the world market at a competitive price. Now, the method of doing this is through the lowest transportation costs that are available.

Certainly, the Great Lakes offer a tool to keep these transportation costs down. There are many areas in the Great Lakes in which we need a good look. The seaway I think has been very successful. Probably if you view it in terms of its first decade it has been one of the amazing things that has happened. Not only has it grown from some 10 million to 48 million tons of cargo, but it has paid $33 million back into the U.S. Treasury and in addition has carried $16 million worth of operating expenses.

When viewed as a seaway itself, as a waterway in comparison to other waterways, it has been very successful even though it hasn't met the principal and interest burden that was placed on it during its construction period.

Senator HARTKE. But the truth of it is this seaway really offers a spectacular development to such an extent that the original development was probably too small; isn't that correct?

Mr. OBERLIN. I think that is a fair statement. Actually, all of us feel that the seaway hasn't yet reached its full potential. We all wish that it were larger. There are areas that I think should be looked at. For example, one of the things in this connection would be the twinning of the locks-whether or not the future traffic requires the expansion of the locks, whether or not the control of the escarpment, the Welland Canal which Canada owns exclusively, is a matter which would give rise to the United States building its own canal between Lake Ontario and Lake Erie. These are matters which very much need the attention of the Nation.

Senator HARTKE. There has been some talk about the fact that rail rates work to the disadvantage of the Seaway. Is that a true statement or is that fiction?

Mr. OBERLIN. Well, now, speaking from my years of experience— not as a seaway administrator because I am not an administrator as yet I feel there are many areas in which there are transportation rates which mitigate against the full use of the seaway. They are discriminatory in that they treat the Great Lakes ports differently than other ports.

There are no export-import rates in the Great Lakes. There are no proportional rates. The rates are out of proportion. It might be that the subcommittee would wish to make an investigation of this to determine the extent which we in the Midwest feel is quite extensive.

Senator HARTKE. Yes. We do have a live quorum on the floor. I would like to ask you questions about the members of the advisory board. Jacob Bernheim of Wisconsin. Foster Brown of New York. William W. Knight, Jr., of Ohio. Miles F. McKee, of Michigan, this is a reappointment. And Joseph Thomas of Indiana. Are you familiar with these individuals? I have talked with them all on the telephone. I am not familiar with them all personally. But they all come very highly recommended.

(The biographical statements follow:)

ST. LAWRENCE SEAWAY DEVELOPMENT CORPORATION ADVISORY BOARD Sec. 2(c) There is hereby established the Advisory Board of the Saint Lawrence Seaway Development Corporation, which shall be composed of five members appointed by the President, by and with the advice and consent of the Senate, not more than three of whom shall belong to the same political party. The Advisory Board shall meet at the call of the Administrator, who shall require it to meet not less often than once each ninety days; shall review the general policies of the Corporation, including its policies in connection with design and construction of facilities and the establishment of rules of measurement for vessels and cargo and rates of charges or tolls; and shall advise the Administrator with respect thereto. Members of the Advisory Board shall receive for their services as members compensation of not to exceed $50 per diem when actually engaged in the performance of their duties, together with their necessary traveling expenses while going to and coming from meetings.

JACOB L. BERNHEIM

Date of Birth: December 7, 1919; Place of Birth: Buchau, Germany; Present Home Address: 1714 North Prospect Avenue, Milwaukee, Wisconsin 53202; Business Address: P.O. Box 90302, Milwaukee, Wisconsin 53202; Business Telephone: Area Code 414-271-6560; Marital Status: Bachelor; Education: University of Wisconsin, B.A.-1948, University of Wisconsin Law School, LL. B. 1949; Military Service: U.S. Army-1942-46-WWII Intelligence Assignments-Last rank-Capt.; Professional Background: Administrative positions with the U.S. Government 1949-1953, General practice of law in Milwaukee, Wisc. since 1953, Presently, partner in the law firm of Michael, Best & Friedrich.-Labor relations counsel to Milwaukee marine terminal and stevedore operators since 1958.

FOSTER S. BROWN

Date of Birth: September 18, 1908; Place of Birth: Leyden, New York; Present Home Address: 54 East Main Street, Canton, New York 13617; Family: MarriedCatherine (Pickard) Brown; Five Children; Education: St. Lawrence University, B.S.-1930, St. Lawrence University, M.S.-1933, Canton, New York; Professional Background: President Emeritus of St. Lawrence University, President, St. Lawrence University 1963-1969, President, State University College, Oswego, New York 1952-1963; Memberships: Governor's Advisory Board on Employment and Unemployment; St. Lawrence Country Historical Club; Rotary Club; Former Vice Pres. of the Assoc. of College and University Presidents; Director of the Empire State Chamber of Commerce; Director, St. Lawrence County National Bank of Canton.

WILLIAM W. KNIGHT, JR.

Date of Birth: January 27, 1905; Place of Birth: Toledo, Ohio; Present Home Address: 4145 Tantara Road, Toledo, Ohio 43623; Present Business Address: 1026 National Bank Building, Toledo, Ohio 43604; Business Telephone: Area Code 419-243-7082; Family: Married-Elsie (Stranahan) Knight, Two children; Education: Yale University, A.B.-1927, Harvard School of Business Administration-M.B.A.-1929; Military Service: U.S. Army-Ordinance-Major 1942Lt. Col. 1944; Professional Background: Michigan Alkali Co., Wyandotte, Mich. (from Industrial Engineer to Assist. General Mgr. and Director.) 1929–1940, Ford Building Company, Detroit, Mich., President and Director 1935-1942, LibbeyOwens-Ford Glass Co., Toledo, Ohio (Assist. to Exec. Vice-Pres.) 1945-1947, TAG Airlines, Inc.-Vice-Pres. & Sec.-Treas., Chairman of the Board-ToledoLucas County Port Authority 1956-, Nicholas Corporation-Toledo, Ohio, Pres. TAG Airlines, Inc.-Vice-Pres & Sec.-Treas., Chairman of the Board-ToledoLucas County Port Authority 1956, Nicholas Corporation-Toledo, Ohio, Pres., and Chm. of the Board 1956-1967, W. Bingham Co.-Toledo, Ohio 1961-1966,