transit of commercial shipping; and a 3 percent annual interest charge on building funds; and

Whereas no such interest charges are made at the 12 other major, federally built canals in the United States: Therefore, be it

Resolved, That Congress is urged to develop a definite formula for computing tolls at the Panama Canal, based on these principles:

1. That tolls should reflect only the cost of providing transit to commercial ships: (a) The cost of providing toll-free transits to Government ships should be eliminated as toll factors on commercial ships; (b) the cost of certain "dual purpose" items should be eliminated as toll factors, or an equitable division of such costs should be made in the case of those adjudged to be of service to both the national defense and commercial aspects of the Canal.

2. That as a minimum recognition of the national defense value of the Canal, no interest should be charged on building funds used.

That the president of the chamber of commerce is requested to furnish copies of this resolution to the President, the California delegation in the United States Congress, and to members of the House Merchant Marine and Fisheries Committee and the Senate Interstate and Foreign Commerce Committee.

Respectfully submitted,

G. A. DUNDON, Chairman.

EXCERPT FROM REPORT OF SECTION 8 ON TRANSPORTATION, COMMUNICATIONS, UTILITIES, AND MINERAL EXTRACTION OF THE STATE OF CALIFORNIA, GOVERNOR'S CONFERENCE ON EMPLOYMENT, SACRAMENTO, CALIF., DECEMBER 6, 1949

RECOMMENDATIONS: TRANSPORTATION AND UTILITIES

Recommendation No. 3: For the revision of tolls at the Panama Canal to reflect more closely the costs of providing transit to commercial vessels.

RESOLUTION OF WOMEN'S ORGANIZATION FOR THE AMERICAN MERCHANT MARINE, PORT OF SAN FRANCISCO

Whereas the Women's Organization for the American Merchant Marine, port of San Francisco, comprised of 100 members, has for its objection the promotion, advancement, and support of the American merchant marine;

Whereas Panama Canal tolls constitute a substantial cost factor in intercoastal shipping which has not been rehabilitated since the war's end;

Whereas since operation of the Panama Canal began in 1914, commercial shipping has paid tolls based not only on cost of providing transit to commercial vessels but also the toll-free transit of Government vessels and other expenses of both military and civil government of the Canal Zone: Now, therefore, be it

Resolved, That thorough consideration be given by the proper officials of the Government to a reorganization of the Panama Canal which will take cognizance of the value of the Canal for national defense, and provide a formula for fixing toll rates which will result in fair and equitable tolls for commercial shipping, reflecting only such operating expense of the Canal as is attributable to the transit of commercial vessels; and be it further

Resolved, That this resolution be spread upon the minutes of this meeing and that a copy be transmitted to the President of the United States, to each member of the committee on Merchant Marine and Fisheries, House of Representatives, to each member of the California delegation of the House and to the Women's National American Merchant Marine Organization.

Dated this 8th day of November 1949, at San Francisco, Calif.

Mrs. ALFRED E. PITTMAN, President.

RESOLUTION OF BOARD OF HARBOR COMMISSIONERS, LOS ANGELES,
RE PANAMA CANAL TOLLS

Whereas Los Angeles Harbor is owned by the city of Los Angeles and is under the jurisdiction, supervision, and control of the board of harbor commissioners of said city; and

Whereas the board of harbor commissioners is vitally interested in the promotion of intercoastal and foreign water-borne commerce in connection with the operation of said harbor; and

Whereas it appears that the operation of the Panama Canal, with respect to the methods of assessing and computing tolls for the use thereof by commercial vessels carrying intercoastal and foreign commerce, places a financial burden upon such water carriers as use said Canal; and

Whereas it appears that the burden of the maintenance of said Canal, including the use thereof by certain governmental functions which should not be considered as directly relating to transits of vessels belonging to such water carriers, is nevertheless considered in the computation of tolls for the transit of such vessels : Now, therefore, be it

Resolved by the Board of Harbor Commissioners of the City of Los Angeles, That the Congress of the United States and such other Federal authorities as have jurisdiction in the premises, be urged and petitioned to fix a formula for the establishment of Panama Canal tolls, so that such tolls will reflect the true costs of handling and otherwise servicing the transits of commercial vessels through the canal; and

That in the establishment of such tolls consideration be given to the exclusion of expenses and costs of operation and supervision of said canal rightly chargeable to certain governmental and military functions and other uses of said canal which are not directly realted to the transits of commercial vessels, to the end that tolls may be established which will not place inequitable and unjustifiable financial burdens on commercial water carriers, particularly water carriers engaged in carrying intercoastal and foreign commerce to or from the Pacific coast.

I hereby certify that the foregoing resolution was adopted by the Board of Harbor Commissioners of the City of Los Angeles at a meeting held September 28, 1949, by the following vote: Ayes-Messrs. Ingebretsen, Chadwick, Sweeney, Pegg (4). Noes-None.

Approved as to form and legality September 28, 1949.

M. G. ROUSE, Secretary.

RAY L. CHESEBRO, City Attorney.

RESOLUTION of Board of SUPERVISORS, LOS ANGELES COUNTY, RE PANAMA CANAL TOLLS

Whereas the continued success and growth of the ports of Los Angeles and Long Beach are vital to the economic welfare of the public and general industry of Los Angeles County; and

Whereas it appears that 64 percent of all west coast cargoes in the intercoastal and foreign trade are subject to Panama Canal tolls and

Whereas it appears that the present financial operation of the Panama Canal is such that it places the burden of maintenance of certain canal functions on commercial shipping of all nations; and

Whereas this is of vital concern to the Los Angeles County ports of Los Angeles and Long Beach, inasmuch as the sum total of such costs are directly or indirectly reflected in the volume of shipping passing through these ports; and

Whereas this board of supervisors is equally concerned and cognizant with the importance of the Panama Canal to commercial shipping and to southern California prosperity: Now, therefore, be it

Resolved, That the Board of Supervisors of Los Angeles County express itself in favor of a formula for financial operation of the Panama Canal that will establish commercial shipping tolls that reflect costs arising out of expenses in connection with the transit of commercial vessels; and be it further

Resolved, That the Congress of the United States be urged to establish a fair and equitable formula for computing tolls for commercial shipping that will give specific attention to the interest now charged on construction costs, the toll-free transit of Government vessels, and the costs of maintaining civil government and military activities in the Canal Zone to the end that such rates for commercial vessel tolls do not reflect the costs of operations other than those that can be considered to be properly applied to the expenses attendant to the transit of such commercial vessels; and be it further

Resolved, That copies of this resolution be transmitted to the Members of Congress from Los Angeles County, together with an appropriate covering letter.

Adopted unanimously by the Board of Supervisors on August 16, 1949.

RESOLUTION OF CALIFORNIA-ARIZONA COTTON ASSOCIATION IN CONVENTION AT PHOENIX, ARIZ., APRIL 14-15, 1950

Whereas the California-Arizona Cotton Association is concerned with all things affecting the costs of shipping and marketing the products of cotton growers; and Whereas the commercial function of the Panama Canal provides a service to the cotton growers in that it offers water-borne access to European ports for cotton shipped from the ports of the west coast; and

Whereas the national defense functions of the Panama Canal are included in the computation of the Panama Canal operating costs from which the tolls assessed to commercial shipping are derived; and

Whereas it appears that the cotton shippers as well as all other users of commercial water-borne traffic can be best served through the development of a formula that will separate the costs of handling toll-free Government vessels and the maintenance of certain civil and military installations from the costs of handling the transits of commercial vessels and expenses incidental to such transits; and

Whereas a separation of national defense costs from commercial costs should logically result in a Panama Canal toll structure that will prove beneficial to the shippers of cotton: Now, therefore, be it

Resolved, That the association does hereby go on record endorsing the following recommendations of the United States Budget Bureau report of January 31, 1950:

(a) Separation of commercial and governmental activities at the Canal; (b) Billing various Government agencies for expenses incurred in their behalf.

(c) Eliminating toll-free transits for Government ships;

That, in addition to those recommendations, this association recomends a division of the capital structure of the Canal to equitably and fairly separate and reflect the national defense and commercial values of the Canal; and

That this association does hereby urge that the Congress of the United States enact legislation forthwith, incorporating the above recommendations, particularly that concerning the division of the capital structure of the Canal, since that is the major factor in today's toll rate.

(Incorporated into the minutes of the convention on April 14, 1950).

RESOLUTION OF CALIFORNIA FISH CANNERS ASSOCIATION, INC., TERMINAL ISLAND, CALIF., JANUARY 5, 1950

Whereas the sound economic development of ocean transportation is vital to the welfare of southern California and the adjoining States; and

Whereas the Panama Canal is recognized to be vital as a national defense utility and to commercial shipping; and

Whereas it is essential that canned fish and a fish products produced in southern California require a first-class transportation system which is necessary to the efficient marketing of canned fish, to transport such marketable product to the eastern United States and foreign countries in an efficient and economical manner; and

Whereas the present method of computing Panama Canal tolls is unfair to commercial shipping: Now, therefore, be it

Resolved, That the Congress of the United States provide a formula for establishing a definite policy for assessing tolls on comercial shipping through the Panama Canal. Such formula should be based solely on the cost of providing transit to commercial vessels. All expenses properly chargeable to the national defense should be so allocated and not to be considered as factors in the toll formula; and be it further

Resolved, That a copy of this resolution be sent to the President of the United States, the California delegation to the Congress of the United States, the House Merchant Marine and Fisheries Committee of the Congress of the United States.

RESOLUTION OF FOREIGN TRADE ASSOCIATION OF SOUTHERN CALIFORNIA,
LOS ANGELES, CALIF., JANUARY 12, 1950

Whereas approximately 64 percent of all west-coast cargoes in foreign and intercoastal trade are subject to Panama Canal tolls; and

Whereas such tolls are reflected in the general costs of shipping and therefore should be regarded as important to the economic welfare and growth of the maritime industry; and

Whereas the volume of cargo moving through the port of Los Angeles is vital to the prosperity and economy of the general public and business of this area; and Whereas the burden of inequitable costs and charges will have an adverse effect on the welfare of the community as well as that of the maritime industry; and

Whereas it appears that the present financial operation of the Panama Canal place the cost burden for certain Government operations on commercial shipping; and

Whereas the members of the Foreign Trade Association of Southern California believe that commercial shipping should be charged only with those costs directly assessible to the transits of commercial vessels, and that the nationaldefense value of the Canal should be recognized by Congress to the end that a fair and equitable formula may be established for setting toll rates based on the considerations hereinabove set out; and

Whereas the membership of the Foreign Trade Association of Southern California believe that the cost of toll-free Government transits should be eliminated as a factor in determining tolls on commercial ships, and that unrelated Government functions should also be eliminated as factors in arriving at tolls on commercial shipping; and

Whereas the importance of the Panama Canal to the Nation as a whole and to the Pacific coast specifically is recognized, and it is believed that a policy should be followed which is fair and equitable to all concerned: Now, therefore, it is hereby

Resolved, That the board of directors of the Foreign Trade Association of Southern California, fully cognizant of the value of the Panama Canal to the national defense and the importance of the Panama Canal to the economic welfare of the ports of southern California and the maritime industry, hereby goes on record

1. In favor of a reexamination of the costs and expenses arising out of the maintenance of the numerous civic, Government, and military activities in the Canal Zone which costs and expenses are presently viewed as reimbursable through toll charges; and

2. In favor of a formula for the assessing of toll charges on all ships of every character on such basis as to equalize all proper operating expenses of the facility, including depreciation and interest on investment.

Approved and adopted, this 12th day of January 1950, by the board of directors of the Foreign Trade Association of Southern California. Attest:

SYDNEY N. SMITH, President.
NORMAN G. HEWSON, Secretary.

RESOLUTION OF HARBOR COMMISSION, CITY OF SAN DIEGO, RE PANAMA CANAL

TOLLS

Whereas transit tolls at the Panama Canal represent a very important item in the operating costs of many American merchant vessels, particularly those engaged continuously in the intercoastal trades; and

Whereas operating costs of American merchant vessels have increased out of proportion to the rate increases granted them; and

Whereas such high operating costs, together with recent labor difficulties, has discouraged the revival of American merchant shipping to an alarming degree; and

Whereas any deterioration of merchant shipping must have a most disastrous effect upon the ports whose very existence and economy depends upon waterborne commerce; and

Whereas the interests of national defense requires that merchant shipping as well as ports be in operation and available in an emergency; and

Whereas the Panama Canal pays no interest to the Treasury, and the so-called interest exists only on the books of the Canal, yet is used as a cost factor in calculating toll rates; and

Whereas, through tolls, commercial shipping has more than paid its own expenses and civil government expenses, and has provided a considerable surplus: Now, therefore, be it

Resolved, That the Harbor Commission of the City of San Diego, Calif., earnestly urge the Congress of the United States to establish a fair and equitable formula for computing tolls on commercial shipping transiting the Panama Canal and that toll-free Government transits be eliminated as a factor in determining tolls on commercial ships, and that there be charged to commercial shipping only those costs attributable to the transits of commercial vessels to the end that American merchant vessels are encouraged in their struggle for survival in the trades of the world.

Dated this 18th day of August 1949 at San Diego, Calif.

I hereby certify the above to be a full, true, and correct copy of Resolution No. 454 (new series) of the Harbor Commission of the City of San Diego, as adopted by said commission.

JOHN F. L. BATE, Secretary.

RESOLUTION OF LONG BEACH BOARD OF HARBOR COMMISSIONERS, NOVEMBER 21, 1949 Whereas the port of Long Beach, Calif., is engaged in an extensive port-development program upon which over $30,000,000 has already been expended and an additional expenditure of $100,000,000 is contemplated during the next 15 to 20 years; and

Whereas by reason of this development program the port of Long Beach is vitally concerned as to the future of both intercoastal and foreign shipping; and

Whereas not only the future operations of the port but the economic prosperity of southern California and adjoining States is concerned; and

Whereas the present methods of assessing and computing tolls for use of the Panama Canal is unjust and places an undue burden on water-borne commerce as it passes through the Canal: Now, therefore, be it

Resolved by the Board of Harbor Commissioners of the City of Long Beach, Calif., That the Congress of the United States establish a fair and equitable formula for Panama Canal toll charges which will provide for proper assessment of tolls against commercial shipping and will relieve commercial shipping of those charges which should not rightly be assessed thereto; and be it further Resolved, That copies of this resolution be transmitted to the proper congressional representatives with the request that this resolution be given their earnest and favorable consideration.

PARTIAL TEXT OF RESOLUTION OF LONG BEACH CHAMBER OF COMMERCE,

NOVEMBER 21, 1949

That the chamber of commerce oppose the present methods of computing and collecting tolls of the Panama Canal and go on record in favor of a fair and equitable formula for computing tolls on commercial shipping that will reflect the costs and expenses arising out of the transit of commercial ships.

RESOLUTION OF LOS ANGELES CHAMBER OF COMMERCE, SEPTEMBER 1, 1949

Resolved, That the Los Angeles Chamber of Commerce hereby go on record: 1. As opposed to the present financial operation of the Panama Canal and the methods of computing and collecting tolls, and

2. In favor of reexamination of the costs and expenses arising out of the maintenance of the numerous civil government and military activities in the Canal Zone, which said costs and expenses are presently viewed as reimbursable through toll charges, and

3. In favor of a formula for the assessing of toll charges on all ships of every character on such basis as to equalize all proper expenses for operating the facility including depreciation.