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Statement of-Continued

Halsey, Stephen S., vice president, American Express Co.-
Harllee, Rear Adm. John (U.S. Navy, retired), Chairman, Federal
Maritime Commission____

Harris, W. F. G., director, Furness, Withy & Co...
Johnson, Hon. Nicholas, Maritime Administrator, Department of
Commerce..

Page

157

67,75

115

18

Jordan, Thomas William, general manager, North America, Jamaica
Tourist Board..

Inc.

Keenan, A. J., passenger vice president, Moore-McCormack Lines, Labor-Management Maritime Committee in support of legislation to regulate cruises..

Lovett, L. D., vice president, Eastern Steamship Lines, Inc., on
behalf of Ariadne Steamship Co., Ltd., and Evangeline Steam-
ship Co...

Mailliard, Hon. William S., a Representative in Congress from the
State of California_-

Martine, Reginald, passenger vice president, Grace Line, Inc---
McNeil, Rear Adm. W. J., president, Grace Line, Inc. -
Mendelsohn, Allan I., State Department..

Miller, William K., Director, Office of Maritime Affairs, Bureau of
Economic Affairs, State Department..

Nemec, Frank, president, Lykes Bros., Steamship Co., Inc..
Parr, Pete, Office of Government Aid, Maritime Administration.
Petersen, Peter H., chairman, Washington committee, National
Association of Meat Purveyors

Rand, William, president, United States Lines

Smith, John E. Jr., past president, Caribbean Cruise Lines, Inc--
Stephan, Edwin W., general manager, Yarmouth Cruise Lines, Inc..
Stinemates, Capt. D. H., office, Chief of Naval Operations, U.S. Navy.
Tebeau, John P., Acting Deputy Commissioner, Division of Marine
Administration, Bureau of Customs..

Trimble, Rear Adm. Paul E., Chief of Staff, U.S. Coast Guard..
White, Burton, attorney, law firm of Burlington Underwood, Barron
Wright & White....

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CASL

Aliens and citizens departing from the United States, on cruise
vessels by type of cruise, calendar year 1964, table...
Foreign-flag cruise ships advertising 1965 U.S. east coast and
gulf, table

89

Winsch, Martin J., general manager, Caribbean Tourist Association__ Additional material supplied by

Grimm, D. E., menorandum to W. J. McNeil, dated May 17,
1965, regarding the tax status of the Oceanic___
Passengers departing from the United States on cruise vessels, by
type of cruise and flag of carrier, calendar year 1964, table----
Passengers departing from the United States on cruise vessels, by
type of cruise and port of debarkation, calendar year 1964,
table....

Transportation of passengers into foreign waters and back to port
of departure, decision from the Justice Department dated
February 12, 1912.............

West Indies Cruise Agreement, submitted by letter signed by S. E.
Morse, secretary, Trans-Atlantic Passenger Conference..
Federal Maritime Commission, incidents of default by cruise operators,
table...

Goeggel, Harry W., resolution adopted at the 14th annual meeting of
the Caribbean Travel Association including the executive com-
mittee and active Government and industry members of the
association........

Harris, W. F. G.

Legal opinion on pending bills before the House of Representatives
by Burton H. White dated August 16, 1965 (annex B).....................
Participants in the ad hoc cruise line committee, table (annex A).
U.S. expenses, account MS Kungsholm five West Indies cruises,
1964, table (annex C) -

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Additional material supplied by-Continued
Maritime Administration-

Consolidated profit and loss statement, passenger vessel opera-
tions, calendar years 1961, 1962, and 1963, table..
Foreign-flag cruise ships operating in compliance with 1948 stand-
ards, table..

Page

30

35

White, Burton H.

Safety factors on the S.S. Hanseatic, letter signed by Adolph von
Zedlitz, dated September 3, 1965-.

135

Communications submitted by

Baker, Jasper S., United Fruit Co.

Letter dated August 19, 1965..

Letter dated August 25, 1965.

Carter, John P., professor of business administration, University of
California, Berkeley, Calif., letter dated January 22, 1965--
Clothier, Ernest A., American Pilots' Association, Inc., letter dated
September 7, 1965..

Coast Guard

Roland, Adm. E. J., letter dated September 1, 1965-Shields, Vice Adm. W. D., letter dated August 23, 1965 Confederation of Italian Shippers, a letter to the Speaker of the House of Representatives and Congressman Mailliard, dated March 13, 1965, from Rome, Italy..

202

202

64

201

43

41

189

Demo, Vincent A., letter dated September 9, 1965, enclosing four letters..

188

Dewey, Ralph B., Pacific American Steamship Association, letter dated August 19, 1965-

198

Drewry, John M., letter dated September 17, 1965, to John E. Smith
in reference to letters received from various firms__
Federal Maritime Commission-

191

Harllee, Adm. John, letter dated September 3, 1965, in response to
request of Congressman Bob Casey.

71

Fraser, John M., Jr., vice president, Swedish American Line, letter to
Vincent J. Demo dated September 9, 1965

190

French Embassy, letter dated August 9, 1965, addressed to the State
Department

54

Hall, Paul, president, Maritime Trades Department, AFL-CIO, telegram dated August 26, 1965.

203

Henderson, J. B., port manager, Port Everglades (Fla.) Authority, letter dated August 18, 1965.

197

Hickey, Daniel C., president, Hotel Association of New York City,
Inc., letter dated August 19, 1965---

197

Mailliard, Hon. William S., letter to Jasper S. Baker dated August 23,
1965_

Mohn, Christian J., resident director for North America, Norwegian
America Line, letter to Vincent A. Demo dated September 7, 1965--
Nestor, John J., passenger traffic manager, Hamburg-Atlantic_Line,
Home Lines Agency, Inc., letter addressed to Vincent A. Demo
dated September 3, 1965.

202

190

191

O'Connor, E., president, Thos. Cook & Son, Inc., letter dated August 23, 1965_

196

Sands, Stafford L., Minister for Finance and Tourism, Nassau,
Bahamas, letter dated September 10, 1965--

200

Smith, John E., Jr., letter dated September 23, 1965, in response to
correspondence from various steamship companies..
Stakem, Thos. E., senior vice president, Delta Steamship Lines, Inc.,
letter dated September 13, 1965.......

192

201

State Department

MacArthur, Douglas, II, letter enclosing note from the French
Embassy dated August 9, 1965----.

54

White, Burton H.

Letter dated September 9, 1965, enclosing letter from Vincent A.
Demo_...

188

Young, Benjamin, letters dated August 25, 1965–

176, 177

COASTWISE CRUISE REGULATIONS

TUESDAY, AUGUST 24, 1965

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON MERCHANT MARINE OF THE

COMMITTEE ON MERCHANT MARINE AND FISHERIES,

Washington, D.C. The subcommittee met at 10 a.m. in room 1334, Longworth House Office Building, Hon. Thomas N. Downing, presiding.

Mr. DOWNING. The Subcommittee on Merchant Marine will come to order.

Ladies and gentlemen, in recent years there has been a significant and substantial increase in ocean cruise traffic generated from our shores. These ocean cruises operate primarily off of our eastern seaboard to the Caribbean during the winter season, commencing in October.

Ocean cruise traffic from our shores has attracted numerous steamship operators and charterers who experience a decline in traffic on their regular liner services during the cruise season. Most of these operators are responsible firms. Unfortunately, however, the traffic has also attracted a number of operators of questionable financial responsibility, operating aging vessels with lower safety and sanitary standards.

This has resulted in several instances where scheduled cruises were suddenly canceled by cruise operators at the last moment. Passengers have been left on the dock, and has lost passage money which they have paid. In other cases, there have been complaints of inadequate sanitary facilities, or substandard safety provisions.

Alarms at the conditions prevailing in the operation of these cruises, the Honorable Edward A. Garmatz and the Honorable William S. Mailliard, both members of this subcommittee, have introduced legislation requiring the licensing of foreign-flag vessels before engaging in cruise traffic from our shores. In addition, Mr. Garmatz has introduced a bill aimed at a particular problem which was sent to the committee by Executive Communication No. 1368. These are the bills upon which the subcommittee will hear testimony today.

Before each member of the subcommittee there is a synopsis of the four bills under consideration today prepared by the staff. It does not contain any departmental reports since they were only received yesterday despite timely requests. In the future, the subcommittee would appreciate it if the various departments would make reports requested of them in a timely manner.

Let the bills-H.R. 2836, H.R. 6272, H.R. 10109, H.R. 10327, and the departmental reports-appear in the record.

(The bills and reports follow:)

[H.R. 2836, 89th Cong., 1st sess.]

A BILL To amend the coastwise laws, protect the balance of payments, and to further protect the traveling public, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 8 of the Act of June 19. 1886, as amended by section 2 of the Act of February 17, 1898, be hereby amended so as to read:

"SECTION 1. No foreign vessel shall transport passengers between ports or places in the United States or its possessions now, or hereafter to be embraced within the coastwise laws, either directly or by way of a foreign port, under penalty of $200 for each passenger so transported and landed.

"SEC. 2. No foreign vessel shall engage in cruises as hereinafter defined from a port or place in the United States (or its posessions now, or hereafter to be, embraced within the coastwise laws) without a license duly issued by the Department of Commerce under penalty of $200 for each passenger carried by such foreign vessels on such cruise.

"SEC. 3. A vessel shall be considered as being operated on a cruise within the meaning of section 2, whether or not it proceeds by way of a foreign port, if the voyage originates and terminates at a port within the United States (or its possessions now, or hereafter to be embraced, within the coastwise laws) and said vessel is primarily engaged in the carriage of passengers on a round trip basis from and to such United States port as opposed to the transportation of passengers in the foreign commerce of the United States between ports in the United States and ports in a foreign country.

"SEC. 4. The Secretary of Commerce is authorized and directed to make rules and regulations affecting foreign vessels engaged in cruises as hereinabove defined so as to permit upon appropriate and timely application and after public hearing and the payment of an appropriate fee charged for the privilege of engaging in such cruise voyage the issuance of a license to such vessels to operate on such cruise voyages, such rules and regulations to include:

"A. The filing of application setting forth the registry of the vessels and their age, the name, address and citizenship of the owners, operators and agents. "B. The filing of such information as the Secretary may deem necessary to establish the financial responsibility of the operator, including, if deemed necessary, appropriate bond for the protection of the public.

"C. The filing of proof that the foreign vessels not only comply with foreign classification requirements but also are in substantial compliance with standards required of vessels of American registry.

"D. The filing of proof that the operator is willing to charge such rates and follow such practices as will not be prejudicial to the operation of vessels of United States registry.

"E. A finding by the Secretary that the granting of such licenses is not detrimental to the commerce of the United States, its balance of payments, the comfort and safety of passengers, nor to operators of vessels under United States registry, and meets the needs of the United States commerce."

GENERAL COUNSEL OF THE DEPARTMENT OF COMMERCE,
Washington, D.C., August 23, 1965.

Hon. HERBERT C. BONNER,

Chairman, Committee on Merchant Marine and Fisheries,
House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: This is in reply to your request for the views of this Department with respect to H.R. 2836, a bill to amend the coastwise laws, protect the balance of payments, and to further protect the traveling public and for other purposes; H.R. 6272, a bill to amend the coastwise laws, to protect the traveling public, and for other purposes: H.R. 10109, a bill to amend the act of June 19, 1886, relating to coastwise passenger transportation, and for the purposes of protecting the balance of payments, and to further protect the traveling public, and for other purposes; and H.R. 10327, a bill to require operators of ocean cruises by water between the United States, its possessions and territories, and foreign countries to file evidence of financial security and other information.

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