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Re S. 602.

PORTLAND, OREG., March 19, 1954.

CHAIRMAN, SUBCOMMITTEE ON WATER TRANSPORTATION,
Committee on Interstate and Foreign Commerce,

United States Senate, Washington, D. C.

GENTLEMEN: I am interested in the hearings on bill S. 602 which will be considered by your committee on March 23, 1954.

I am employed as a cargo surveyor by the National Cargo Bureau, Inc., a nationwide organization, the function of which is to provide a cargo surveying service to shipowners. We assist them in the solving of problems of loading dangerous and other cargoes on board vessels. Here on the west coast we handle principally grain, which is considered a hazardous cargo.

Prior to the inception of the National Cargo Bureau on November 19, 1952, I was employed by the Board of Marine Underwriters of San Francisco as a marine surveyor. As an employee of that organization I also surveyed ships for the purpose of passing them for the safe carriage of grain. I have been a cargo surveyor in Portland since July 1948, and in that time more grain has moved out of this port than any time in history. I think I surveyed the majority of these ships carrying grain and therefore can be considered a qualified surveyor of grain cargoes.

I have the required qualifications for a marine surveyor in that prior to my employment as such I had been a shipmaster employed by the American Steamship Co. I worked for American Hawaiian for 20 years as a seaman, ships officer, and master. This brief outline of my experience is given to show that I am qualified as a surveyor and am familiar with the carriage of hazardous cargoes, particularly grain.

As a long-time resident of Oregon and as an established cargo surveyor in the port of Portland I am interested in the passage of S. 602. I believe the passage of this bill is essential to the interests of public safety. As a surveyor in the employ of the National Cargo Bureau, whom the Coast Guard has recognized as being helpful in administering the provisions of the Dangerous Cargo Act, I believe I can give the shipowners a service with regard to safety at sea, which they need and desire.

Very truly yours,

Capt. DAVID L. BENNETT,
Portland, Oreg.

SAN FRANCISCO, CALIF., March 18, 1954.

CHAIRMAN, SUBCOMMITTEE ON WATER TRANSPORTATION,
Committee on Interstate and Foreign Commerce,

United States Senate, Washington, D. C.

GENTLEMEN: Referring to bill S. 602 which I understand comes up for a hearing before your committee on March 23, 1954, I wish to go on record in favor of its passage.

I am presently employed as a cargo surveyor for the National Cargo Bureau, Inc., and have been since its inception on November 19, 1952. Prior to that time, I was employed as a cargo surveyor for the Board of Marine Underwriters of San Francisco, Inc., from May 1946 until the National Cargo Bureau succeeded the Board of Marine Underwriters in the handling of cargo loading and discharging operations.

My primary interest as a surveyor is the safe and proper stowage of cargo aboard vessels as dictated by Government regulations, standard practice, or accepted

custom.

Having sailed in a license capacity since 1934, and as a master of oceangoing vessels from 1941 to 1946, I am well aware that the safe and proper stowage of cargoes is essential for the safety of the vessel.

I might state that having a master's license is one of the mandatory qualifications for employment as a cargo surveyor for the National Cargo Bureau.

From personal experience during my years at sea, and as a surveyor for 8 years, I have had experience with the stowage of all types of cargo including bulk grain stowage, the fittings, weight distribution, etc., as presently required by the United State Coast Guard regulations.

With respect to the stowage of bulk grain cargoes, I believe that a national organization with qualified surveyors should be used to see that rules and regulations of the United States Coast Guard are strictly complied with.

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In closing may I again stress my interest in the passage of bill S. 602 which I believe would set up a uniform service for strict compliance with the regulations of the International Convention for the Safety of Life at Sea Act of 1948.

Very truly yours,

A. B. CURRIE.

SAN FRANCISCO, CALIF., March 19, 1954.

SENATE COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,
Subcommittee on Water Transportation,

Senate Office Building, Washington, D. C.:

Recommend every consideration be given to the appeal of Pacific Coast Conference of Marine Surveyors regarding equal treatment in bill S. 602 at hearing on March 23, as they represent a strong element of long-established private enterprise, and as a small business they are being detrimentally affected. It would be a great loss to the West Coast marine industry to have our traditional independent marine surveyors forced out of business.

MARINE EXCHANGE,

LOUIS ETS-HOKIN, President.

BEAVERTON, OREG., March 19, 1954.

CHAIRMAN, SUBCOMMITTEE ON WATER TRANSPORTATION,
Committee on Interstate and Foreign Commerce,

United States Senate, Washington, D. C.

DEAR SIR: I believe that Senate bill 602, which prescribes rules for loading and stowage of grain and other bulk cargoes transported by water, should become a part of the law of the United States.

My reasons for my approval of Senate bill 602 are as follows:

1. For the first time in the history of the United States maritime industry, safety requirements and minimum standards of inspecting, fitting, and loading such cargoes will be uniform in all the ports of the entire Nation.

2. With one authorizing agency-i. e., the United States Coast Guard-the confusion which existed previous to 1952, when individual surveyors and supercargoes used their own ideas as to fitting and loading of vessels, with the result that in some instances vessels were improperly loaded and trimmed, would be eliminated.

I have been a resident of the State of Oregon since May 1951. Previous to May 1951 I was a lifetime resident of the State of Washington. From 1929 to 1951 I was employed in the shipping industry as a member of ships' crews. During this time I served in all capacities of the deck department and as master of Liberty-type steamers from 1943 until 1947.

I received my master's certificate in 1943 and have maintained it in force to the present date.

In May 1951 I was employed by the Board of Marine Underwriters of San Francisco, Inc., as a marine surveyor. My work consisted of supervising the loading and discharging of cargoes, inspection of vessels for carriage of cargo, and supervising fitting and lining of vessels for carriage of grain and bulk cargoes. In November 1952 I became a member of the Portland, Oreg., staff of the National Cargo Bureau, Inc., as a marine surveyor, doing fundamentally the same type of work I did as a surveyor for the Board of Marine Underwriters of San Francisco, Inc.

In the course of my work I have become familiar with United States Coast Guard regulations regarding loading and carriage of cargoes of all descriptions, but specifically bulk and grain cargoes.

Very truly yours,

W. G. McCALLUM.

NATIONAL CARGO BUREAU, INC.,
OFFICE OF THE SURVEYOR,
Seattle, Wash., March 19, 1954.

Re S. 602 (Grain Cargo Act) subcommittee hearing, United States Senate, March 23, 1954.

CHAIRMAN, SUBCOMMITTEE ON WATER TRANSPORTATION,

Committee on Interstate and Foreign Commerce,

United States Senate, Washington 25, D. Č.

GENTLEMEN: I have resided in Seattle for 43 years and have sailed out of this port as a licensed deck officer since 1933. During this period I was employed on various trade routes and supervised loading of various commodities as a deck officer.

The undersigned has been the senior surveyor of the Seattle office of the National Cargo Bureau, Inc., since the bureau's inception November 19, 1952. From June 1951 to November 1952, I was employed as surveyor for the Board of Marine Underwriters of San Francisco, Inc., who also surveyed for the United States Salvage Association. Prior to becoming a surveyor I was port captain of the Alaska Steamship Co. for 6 years. During the time as port captain the Alaska. Steamship Co. handled numerous grain vessels loaded in the Puget Sound and Columbia River areas, with which I had personal contact during the loadings.

As a surveyor for the National Cargo Bureau I have loaded many bulk-grain vessels in accordance with the United States Coast Guard regulation for the loading of bulk grain cargoes on international voyages.

From my experience I believe that for the sake of safety of life and ships and uniformity, there should be an act of Congress prescribing definite and uniform rules for the loading of bulk grain cargoes; this act to be subject to inspection by one national organization. It is also my hope that these rules will eventually become international, so as to reduce unfair and unsafe practices of loading grain that originates in other countries.

Yours truly,

Subject: Senate bill 602.

The CHAIRMAN,

R. A. JOHNSON, Surveyor.

NATIONAL CARGO BUREAU, INC.,

OFFICE OF THE SURVEYOR,

Los Angeles/Long Beach, March 18, 1954.

Subcommittee on Water Transportation,

Committee on Interstate and Foreign Commerce,

United States Senate, Washington 25, D. C.

DEAR SIR: In reference to the forthcoming hearings by your committee on March 23, 1954, regarding the above captioned bill, I beg to advise you as follows: I wish to extend my full endorsement and support to Senate bill 602 in the sincere belief that enactment of this legislation will greatly advance the cause of safety at sea.

The writer is a native son of the State of California and graduated from school in Santa Barbara, Calif. Since leaving school 20 years ago, I have been actively engaged in the shipping industry, which has included service from ordinary seaman to the position as master in all trades and oceans, including carriage of bulk cargoes, and fitting out vessels in conjunction with my service with operating department of the Matson Navigation Co.

Since January 1953, I have been serving as resident surveyor of the National Cargo Bureau, Inc., in southern California. A strong desire to be with my wife and children prompted me to seek my present berth which was secured after a thorough interrogation and indoctrination on the subject of safety at sea and application of the United States Coast Guard dangerous-cargo rules and regulations.

It is my firm conviction, based on years of personal observation, that Senate bill 602 has been most needed for years past, not only to increase safety at sea, but to create uniformity with resultant reduction of costs to the industry and possible loss of lives.

In token with the above facts, the undersigned cannot subscribe to the idea of the so-called independent surveyor being actually independent and unbiased in their thoughts while they are dependent (for fees, etc.) on only one of the many

parties connected with the movement of waterborne commerce.

The presence of a surveyor of the National Cargo Bureau, Inc., fully fortified with uniform recommendations, knowledge of the United States Coast Guard dangerous cargo regulations, and without fear to speak against possible violation of best seamanlike practices and/or dangerous cargo regulations of the United States Coast Guard, most certainly conforms to the intent ana moral obligations of the Safety at Sea Convention of 1948 and Senate bill 602.

Again, I respectfully urge the committee to act favorably in support of Senate bill 602 in the best interest of all parties concerned.

Very truly yours,

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Re Senate bill 602.

CHAIRMAN,

Subcommittee on Interstate and Foreign Commerce,
United States Senate, Washington 25, D. C.

GENTLEMEN: I respectfully request your utmost support of the above Senate bill 602 which will be the subject of hearings by your subcommittee in the United States Senate on March 23, 1954. I would like to state my reasons for the request of your support and my qualifications for making the request.

The maritime nations of the world long ago recognized the need of classification societies for hulls and machineries and from this need was born our American Bureau of Shipping and Lloyd's Register.

Practice has proven however that numerous marine disasters have been caused by the illegal or improper stowage of grain in bulk.

I have been actually engaged in the operating department of the steamship industry since October 1931 and have sailed in all capacities from seaman through master, on freighters of all types, engaged in various worldwide and domestic trades. I am at present employed as a surveyor for the National Cargo Bureau, Inc., at Seattle, Wash., and have been in that employment since January 1953. My employment with the National Cargo Bureau, Inc., resulted from an application for employment I had placed with the San Francisco Board of Marine Underwriters in January 1949. I own my own home in Seattle and have been a legal resident of Washington for over 4 years, having previously resided in Olympia. Whether I remain a surveyor to the National Cargo Bureau or at some future date return to my profession as a licensed ship's officer, I believe that passage of Senate bill 602, and its enforcement, will provide better protection to our ships and the people that sail them.

Very respectfully,

WILLIAM J. BRADY.

Senator PAYNE. The hearing is adjourned at this time. (Whereupon, at 10 a. m., the hearing was adjourned.)

ADDENDA

The following material was submitted for the record subsequent to the close of the hearing.

(The annual report of National Cargo Bureau, Inc. is as follows:) NATIONAL CARGO BUREAU, INC., New York, N. Y., March 31, 1954.

Re S. 602.

Senator FREDERICK G. PAYNE,

Subcommittee on Water Transportation,

Committee on Interstate and Foreign Commerce,

United States Senate, Washington, D. C.

DEAR SENATOR PAYNE: At the conclusion of the hearings of your subcommittee on S. 602 on March 24, you invited National Cargo Bureau to submit its last annual report and certain other data. In this connection, there is forwarded herewith ten (10) copies of the following material.

Certificate of incorporation

Bylaws

Directory of offices, directors, committees, and members

Directory of officers and surveyors

Last annual reports of president and chairmen of executive, finance, and operating committees

Balance sheet as of December 31, 1953

Statement of income and expenses for year ended December 31, 1953 National Cargo Bureau was formed as a voluntary move by shipping and marine insurance interests at the invitation of the Coast Guard. Because of the specifications by the Coast Guard that the organization should be not only nonprofit but also nationwide in scope and have Government represented on its board of directors, it was essential that the existing inspection services of marine underwriters be adapted to a new organization-National Cargo Bureau, Inc. In order to initiate its operations, and having no capital of its own, National Cargo Bureau had to borrow money. The Board of Underwriters of New York agreed to loan up to $60,000 to meet working-capital requirements ($38,500 has been borrowed under this loan). The board also accepted a note from NCB in the amount of $12,197 for the transfer of automobiles, furniture, and equipment. Shipping associations and companies underwrote organizational expenses during 1952, in the amount of $17,000. All of these loans are repayable within the first 5 years of operation. A scale of fees was established to enable accumulation of funds to meet the payments. A payment of $20,000 was made in 1953.

Another factor to be considered in analyzing the finances of NCB is that the directors of NCB have been anxious to make major adjustments in surveyors' salaries, commensurate with their responsibilities and experience. After awaiting results of a year's experience, the first step in these adjustments was effected at the end of 1953 at which time the directors agreed to salary adjustments that are expected to cost about an additional $14,000 in 1954.

None of the officers or directors receive compensation from National Cargo Bureau. The executive vice president and secretary are employees of the Board of Underwriters of New York. Individual marine underwriters and ship operators voluntarily serve to direct the affairs of the bureau.

The item of "fiscal agent's fee" in the statement of income and expenses represents the exact cost of services of the Board of Underwriters of New York who agreed to provide a continuing direction of certain management affairs of NCB during the years of transition from a marine underwriters' bureau of inspection to the new NCB. Office space in New York, as well as executive, secretarial,

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