Inquiry Into the Operations of the Maritime Commission with Particular Reference to Allowances for National-defense Features and Construction-differential Subsidies Under Title V of the Merchant Marine Act of 1936, as Amended

McGuigan, Capt. J. L., United States Navy, Chief of the Bureau of
Engineering, United States Maritime Commission; V. L. Russo,
Chief of the Division of Preliminary Design; Joseph F. Barnes, Chief
of the Division of Estimates; and W. O. Schrader, Assistant Chief
of the Division of Estimates..
267, 313, 381, 386, 404
McKeough, Commissioner Raymond S., United States Maritime
Commission_.

Mansfield, Capt. W. N., United States Naval Reserve..

152, 381

437

III

Testimony of-Continued

Page

Mellen, Commissioner Grenville, Vice Chairman, United States

Maritime Commission..
149, 191, 220, 242, 312, 388, 402

Morse, Huntington T., Chief, Office of Interdepartmental Liaison,

United States Maritime Commission__.

Nash, Frank C., representing the Secretary of Defense.

Schattner, Samuel, General Accounting Office.--

Tibbott, Lloyd, assistant to Chief, Office of Regulations, and secretary,

Trade Routes Committee, United States Maritime Commission..

Westfall, Ted, Assistant Director of Corporation Audits, General

Accounting Office..
204, 257, 306, 401, 430, 503, 531, 585

444, 539

Wheelock, Charles D., United States Navy.

Wills, George, estimator, Division of Cost Analysis, United States

Maritime Commission..

Wills, George A., equipment engineer, Division of Cost Analysis,

Bureau of Government Aids, United States Maritime Commission;

Col. Hugh D. Butler, Chief, Division of Cost Analysis, Bureau of

Government Aids; Aubrey D. Beidelman, equipment engineer,

Division of Cost Analysis, Bureau of Government Aids; Ted Westfall,

Assistant Director of Corporation Audits, General Accounting Office;

Frank Turbett, Corporation Audits Division, General Accounting

Office..

Letters, statements, exhibits, tables, etc., submitted for the record by-

Andrews, M. E., Acting Secretary of the Navy, exhibit 9, letter to

Chairman, United States Maritime Commission, July 29, 1948...

Barnes, J. L., retired former Chief of the Bureau of Engineering,

United States Maritime Commission:

Bidding specifications, December 1947..

Letter from J. E. Slater, vice president, American Export Lines,

to the Maritime Commission, March 22, 1948---

Bates, J. L., retired, former Chief of the Bureau of Engineering,
United States Maritime Commission, telegram to American Export
Lines, March 30..

Bates, James L., C. D. Wheelock, rear admiral, United States Navy,

and William Francis Gibbs, exhibit 13, confidential memorandum,

February 3, 1949-Impracticability of separately evaluating each of

the national defense features involved in the proposed United

States Lines Co. ship.

432

Butler, Col. Hugh D., Chief, Division of Cost Analysis, United States

Maritime Commission:

Beidelman, A. D., chief estimator, Division of Cost Analysis, United

States Maritime Commission, memorandum of July 28, estimate of

foreign cost..

251

Memorandum, construction differential on the DZ-1 big ship;

dated January 4, 1949--

Carson, Commissioner Joseph K., Jr., United States Maritime Com-

mission:

348

Citations from six court decisions which illustrate the effect of

findings made by Congress.

151

553

Letter to Hon. Porter Hardy, Jr., September 22, 1949..

Table-Deliveries of new merchant vessels during the calendar

year 1947-Seagoing steam and motor vessels 1,000 gross tons

and over, by vessel type, country in which built and for which

built (excludes vessels built for operation on the Great Lakes;

inland waterways; armed forces; and special types, such as

tugs, ferries, cable ships, etc.)--

Table Deliveries of new merchant vessels during the calendar

year 1948-Seagoing steam and motor vessels 1,000 gross tons

and over, by vessel type, country in which built and for which

built (excludes vessels built for operation on Great Lakes;

inland waterways; armed forces; and special types, such as

tugs, ferries, cable ships, etc.).

139

141

Table-World construction and delivery of seagoing merchant

vessels, 1,000 gross tons and over, September 2, 1945-June 30,

1948

136

Casey, Ralph E., associate general counsel, General Accounting

Office:

Excerpts from Maritime Commission meeting of January 19,

1949--

529

Letters, statements, exhibits, tables, etc.-Continued
Casey, Ralph E., associate general counsel-Continued

Letter from Chairman, Maritime Commission, to Comptroller
General, December 21, 1948-

Memorandums concerning United States Maritime Commission..
Memorandum concerning the procedural aspects of subsidy
determinations....

Darr, F. M., chairman, Trade Routes Committee, exhibit 10,
American Export Lines, Inc., application for construction-
differential subsidy to aid in the construction and purchase of three
passenger-cargo vessels.

Forrestal, James, Secretary of Defense, and William W. Smith,

Chairman, Maritime Commission, letter to the President, July 1,

1948..

Forrestal, James, Secretary of Defense, letter to Admiral Smith,

April 30, 1948-

Franklin, John M., president, United States Lines Co.:

Exhibit 14, letter to United States Maritime Commission, March

26, 1946.

Exhibit 15, passenger ship for United States Lines Co., letter to

chairman, United States Maritime Commission, April 9, 1948-

Geaslin, Bon, general counsel, United States Maritime Commission,
July 19, 1938, exhibit A-American Export Lines, Inc.-application
for construction-differential subsidy...

Gillespie, Hugh M., vice president, secretary-treasurer, American

Export Lines, Inc., letter to United States Maritime Commission,

June 9, 1947_

Ives, Stephen B., Director of Corporation Audits, Maritime Commis-
sion, report, July 11, 1949_

Keller, K. T., chairman, Marion B. Folsom, vice chairman, Andrew

W. Robertson, James B. Black, and E. L. Cochrane, President's

Advisory Committee on the Merchant Marine, exhibit 2:

Letter of transmittal, November 1, 1947.--

Report...

Kenney, W. John, Acting Secretary of the Navy:

Exhibit 5-Letter to the Chairman, United States Maritime
Commission, August 18, 1948....

Exhibit 12-Letter to the Chairman, United States Maritime
Commission, January 10, 1949.

Land, Vice Adm. Emory S., United States Navy (retired), Chairman,

United States Maritime Commission, and Administrator, War Ship-

ping Administration, exhibit 1-statement after luncheon with Presi-

dent Roosevelt, October 25, 1944.

Lanier, Monro B., president, Ingalls Shipbuilding Corp.:

Exhibit 17-Comparative costs, European and American ship

construction, letter August 1, 1949.

Bids for Flota Mercante del Estado (Argentina)-Bids taken in

fiscal year 1947 on 7,000-ton dead weight, including 20,000

cubic feet refrigeration, 12-passenger, 16-knot motorship. -

Enclosure (A)-Flota Mercante del Estado, Argentina-Com-

parative bids for construction of each of 3 combination pas-

senger cargo, 8,500-ton dead weight, 6,000 shaft horsepower

motorships with 150 first-class passengers-

Enclosure (B)-Department of Rivers, Harbors, and Canals,

Ministry of Public Works of Brazil-Comparative bids for

construction of one single-screw Diesel or steam-driven sea-

going hopper-type dredge. Bids opened March 6, 1949.___

McGuigan, Capt. J. L., Chief, Bureau of Engineering, United States

Maritime Commission, statement...

McKeough, Commissioner Raymond S., United States Maritime

Commission:

386

Letter to Hon. Porter Hardy, Jr., August 5, 1949-

List of pertinent documents, date, and where filed..

153

168

Memorandum-Action of the Maritime Commission at special

meeting, April 1, 1949_...

153

Letters, statements, exhibits, tables, etc.-Continued

McKeough, Commissioner Raymond S.-Continued

Memorandum-Treatment of "escalation" of the cost of con-

struction of two combination passenger cargo vessels for the

American Export Lines, Inc., and three combination passenger

cargo vessels for American President Lines, Ltd.............

Mellen, Commissioner Grenville, Vice Chairman, United States Mari-

time Commission:

Interoffice memorandum from W. O. Schrader, Assistant Chief,

Cost Division, United States Maritime Commission, June 2,

1948.

Letter from W. O. Schrader, August 15, 1949, estimated construc-

tion cost of the prototype vessel design C3-S-DX1..

Résumé of opening of bids on PDW-13 for the design and con-

struction of a single-screw cargo vessel turbine propulsion, de-

sign C3-S-DX1-August 15, 1949.

Statement with respect to the special report of the staff of the

Comptroller General, dated July 11, 1949, to Hon. Porter

Hardy, Jr., August 5, 1949_

Exhibit A-American Export Lines, Inc.-Application for

construction differential subsidy..

Exhibit 1-Statement of Vice Adm. Emory S. Land, United

States Navy (retired), Chairman, United States Maritime

Commission, and Administrator, War Shipping Adminis-

tration, after luncheon with President Roosevelt, October

25, 1944

Exhibit 2-Report of the President's Advisory Committee

on the Merchant Marine, Washington, D. C., November

1, 1947.

Exhibit 3-Letter from A. B. Poole, vice president and
treasurer, American President Lines to Admiral William
W. Smith, August 8, 1948_.

Exhibit 4-Proposed passenger vessels for American Presi-

dent Lines..

Exhibit 5-Letter from W. John Kenney, Acting Secretary
of the Navy, to the Chairman, United States Maritime
Commission, August 18, 1948_.

Exhibit 6-Letter to Comptroller General of the United States
from Admiral William W. Smith, December 21, 1948...
Exhibit 7-Letter to Chairman, United States Maritime
Commission, from Lindsay G. Warren, January 25, 1949-

Exhibit 8-Proposed passenger vessel for American Export

Lines

Exhibit 9-Letter to Chairman, United States Maritime
Commission, from M. E. Andrews, Acting Secretary of the
Navy, July 29, 1948-

Exhibit 10-American Export Lines, Inc., application for

construction-differential subsidy to aid in the construction

and purchase of three passenger-cargo vessels, July 13, 1948-

Exhibit 11-Proposed passenger liner for trans-Atlantic

service, December 20, 1948.

Exhibit 12-Letter to Chairman, United States Maritime

Commission, from W. John Kenney, Acting Secretary of

the Navy, January 10, 1949___

Exhibit 13-Confidential memorandum-Impracticability of