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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.

RESOLUTION OF LOS ANGELES TRAFFIC MANAGERS CONFERENCE, JANUARY 12, 1950

Whereas the constituent members of the Los Angeles Traffic Managers Conference, numbering over 100 representative industrial and distributing concerns of southern California, make extensive use of the water carriers-intercoastal, offshore, and foreign-and have a very direct and vital interest in the costs of transportation of commodities, and

Whereas it appears over 64 percent of the water-borne tonnage of the Pacific coast pays toll charges via the Panama Canal, and

Whereas to the best of our information and belief the present Panama Canal tolls under the Government system of accounting are not fixed for commercial vessels upon a just and reasonable basis with any due regard for operating costs and allocations for other expense in line with modern methods of rate making: Now, therefore, be it

Resolved, That the Los Angeles Traffic Managers Conference go on record with our Representatives in Congress and other Government officials directly concerned in urging a revision of the present methods of accounting of the financial operations of the Panama Canal to the end that tolls for commercial vessels be based upon a proper consideration and due regard for the costs of operation in the transiting of such vessels, with a proper allocation of overhead and costs of various other services, a part or all of which should be contributed by the various departments of the Government to the end that commercial vessels be relieved in the tolls they pay from the undue burden of the total expense of the Canal operation; and be it further

Resolved, That copies of this resolution be forwarded to our Representatives in Congress and members of committees and Government officials concerned in this matter.

Dated at Los Angeles, Calif., on January 12, 1950.

RESOLUTION OF MARINE ASSOCIATION OF COMMERCE, NOVEMBER 23, 1949

Whereas the Marine Association of Commerce is vitally concerned with the growth, prosperity, employment, and general public interest of the harbor areas of Los Angeles and Long Beach; and

Whereas it appears that the present method of computing tolls for vessels transiting the Panama Canal acts as a deterrent to water-borne commerce and inhibits the economic welfare of the port communities; and

Whereas it appears that the present practice of computing Panama Canal tolls places the burden of maintenance of transits of toll-free Government vessels and certain military and Canal Zone government functions on commercial shipping: Now, therefore, be it

Resolved, That the Marine Association of Commerce express itself in favor of a formula for assessing Panama Canal tolls on commercial vessels that will clearly reflect the costs arising out of the transits of such commercial vessels and separate from such costs those arising out of the transits of toll-free vessels and military and Government installations; and be it further

Resolved, That copies of this resolution, together with appropriate covering letters, be forthwith transmitted to all necessary Government agencies, authorities, and political representatives urging them to take immediate action on this matter.

Done this 23d day of November 1949.

HARRY E. WADE, President.

RESOLUTION OF MARINE UNDERWRITERS ASSOCIATION OF SOUTHERN CALIFORNIA Whereas the Marine Underwriters Association of Southern California is concerned with the long-range development and progress of all water-borne commerce; and Whereas the Panama Canal is important to the continuing transits of commercial world and domestic trade; and

Whereas the volume of west coast cargoes shipped in foreign and intercoastal commerce is accountable for 64 percent of its total in Panama Canal transits, and Whereas the membership of the Marine Underwriters Association is of the opinion that the present financial operations of the Panama Canal inhibit trade, restrict water-borne commerce, and are inequitable in that they place the burden

of costs for the maintenance of certain civil and military government installations and the costs of handling the transits of toll-free Government vessels on commercial shipping; and

Whereas it is to the general interest of the people of the United States and to the welfare and progress of water-borne commerce that an equitable financial and toll assessing structure be created: Now, therefore, be it

Resolved, That the Marine Underwriters Association of Southern California, being fully aware of the importance of the Panama Canal as an instrument of national defense and equally aware of its importance to water-borne commerce, go on record as favoring:

(a) A close study of the financial structure of the Panama Canal and an analysis of the costs and expenses arising out of the maintenance of all civil and military government installations, which said costs are presently included in the formula on which tolls are levied on commercial shipping; and

(b) A recommendation that a formula be developed that will, in the assessing of tolls and the fixing of toll rates, clearly reflect the costs arising out of the transits of commercial vessels and separate therefrom costs not properly or justifiably attributable to commercial shipping; and

(c) A recommendation for an equalization of all costs of Panama Canal maintenance serving a dual purpose for both military or national defense and commercial shipping; and

(d) A recommendation for prompt and favorable consideration of a redevelopment of the financial structure of the Panama Canal by the Congress of the United States of America; and be it further

Resolved, That copies of this resolution, together with appropriate covering letters, be forthwith sent to all right and proper parties and to the Representatives of the Congress of the United States.

This resolution approved and adopted by the Marine Underwriters Association of Southern California this 10th day of April 1950.

Attest:

G. L. BULKLEY, President.

FRANK KANE, Secretary.

RESOLUTION OF THE MOTOR TRUCK ASSOCIATION OF SOUTHERN CALIFORNIA,

LOS ANGELES, CALIF., DECEMBER 19, 1949

Whereas the construction of the Panama Canal opened the transit of waterborne freight and passengers between the Atlantic and Pacific Oceans and facilitated the prompt and efficient movement of military vessels in the national defense; and

Whereas investigations have been made by the Congress from time to time to determine proper methods for administering the operation of the Canal and the apportionment cost thereof; and

Whereas it has been developed that since 1931 the national-defense share of the capital cost has been so readjusted as to place the entire financial burden of the Canal on commerical users; and

Whereas, 64.2 percent of all tonnage paying Canal tolls has been charged to Pacific tonnage, thus adding to the already heavy burden of costs imposed upon such water-borne traffic, necessitating increases in rates to meet the mounting costs, which the public is required to pay in the purchase of such tonnage; and Whereas it is believed that a more equitable formula for the distribution of Canal costs should be arrived at under the following suggested policy: (1) Commercial shipping should pay only its own way, with tolls reflecting the true cost of providing transit for commercial vessels; (2) interest should not be charged on funds used to build the Canal. No interest or tolls are charged on the 12 other federally built canals. Panama Canal interest charges should be eliminated as a minimum acknowledgement of its national-defense value; (3) all vessels of all types should pay tolls at the Canal. Government vessels now transit the Canal toll-free; (4) commercial shipping should pay through tolls no more than half the cost of dual-purpose expenses at the Canal. Military and civil government activities should bear at least half: Now, therefore, be it Resolved by the Board of Directors of the Motor Truck Association of Southern California, representing the major portion of the trucking industry handling water-borne commerce through the ports of southern California, That the Congress of the United States in considering the report of the Bureau of the 69357-50-9

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