the disability and are doing everything they can do to accommodate the use of the vessels that we would have in the service to them before they received the 50 that we are repairing in conjunction with their effort to turn them back so that they will find their way into the domestic service. Now, I am told, I repeat-it is not my thought; it is only what I get from people in the business; it was testified to here I know last December that if 40 additional tankers were made available to industry, privately, this shortage would be licked. I think that was the testimony. Now, we are all on the way to giving them that 40. They will have had the 50 that the Navy used out in private supply by the middle of next month. So that I think that it is up to the industry to fulfill its commitment to this committee on the premise that if they had 40 additional tankers, they would lick this emergency. Now, they also added that even though they get the 50 there still will not be oil enough and I am sure you gentlemen have read in the papers of the country, as I have, the advertisements they paid for to indicate the disabilities relating to themselves, not alone to transportation, but particularly to added use of oil. And who, I ask, in the United States, even in the Congress and I have still a great respect for the Congress-who among the Congress would ever have anticipated on VJ-day that less than 2 years following there would be a greater demand for oil and oil products than there was at the peak of the war? Certainly the oil industry did not think But that is the situation today, they tell me. so. men. I do not know that there is anything further that I can add, gentleWe sit at your feet. We are willing to help and to go anywhere you want to go. We will do anything we can, and I am going to finish with the comment, gentlemen, that I am forced to make: That in passing, I merely want to say we find ourselves today, by the judgment of the Congress-and I am not criticizing or being critical of them with only 20 percent of the people working on this and many more complex problems as compared with July 1, 1945, when the operating fleet was at its peak, when the war was on, and these papers we have brought to you here are here only because most of our staff worked through the night to get them ready to bring them to you today. We are woefully short-handed, and I think that our agency on the whole is not a bad one. I think it is the only one with the number of people that has turned back to the Treasury out of ship sales and charter program approximately $2,000,000,000 into the Treasury of the United States in less than 2 years with approximately 3,000 people to do it, and I do not think that any industrial giant in the country could have had that much gross income with that sort of small staff. I am finished, unless there are questions that you want to ask me. The CHAIRMAN. Mr. McKeough, before the questioning period commences, I think it is proper that you should realize that this committee at all times has been impressed with your sincerity in this matter, as you have spoken for the Maritime Commission, and that there has always been a spirit of cooperation with the committee which has been very gratifying. Mr. MCKEOUGH. I share that 100 percent, and I would lie if I said anything else. You have been most courteous and indulgent and thoughtful and we are grateful to you. The CHAIRMAN. The telegrams which you have submitted to us this morning were sent to these different companies who might be in a position to help, and the effort that you have made in that respect is commendable. It is our hope that it will result in providing some solution or some remedy, insofar as it can be, to the problem we are endeavoring to remedy. I would not want you, either as an individual or on behalf of the Maritime Commission, to go away with any thought other than that the committee is appreciative of your effort to comply with its request and to cooperate with it. The information which you have submitted this morning, I can realize, has taken a great deal of time to prepare-not only in its actual preparation, but in obtaining the information, and we appreciate the extra effort you have made to comply with the request of the committee in that respect. Gentlemen of the committee, do you wish to question Mr. McKeough at this time? Mr. HALL. Mr. Chairman. The CHAIRMAN. Mr. Hall. Mr. HALL. Mr. McKeough, on the lists which have been furnished by Mr. McGuire, it is shown to whom the tankers have been delivered; but this does not indicate in what service the tankers are working today; whether in domestic or foreign. I notice that several of the tankers have been sold to American overseas corporations. Does that mean that those tankers are plying back and forth across the ocean or are they in coastwise trade? Can you give me that information? Mr. MCKEOUGH. Mr. McGuire can answer that for the Commission. Mr. MCGUIRE. Mr. Hall, we would have to pursue this further to get you the detailed information in respect to each of these vessels and with the time available to us we could not develop the use as of today of the particular vessels. Many of these ships are presently, right now, in the repair yards, you see, even though they have been delivered under purchase survey several weeks ago. Mr. HALL. Am I to presume, Mr. McKeough, when these vessels' were turned over after release by the Navy that you interceded with the purchaser to leave them in the domestic trade? Mr. MCKEOUGH. I can answer that this way, Congressman, and Mr. Helmbold can more specifically answer it. We urged upon our operating people at the time that this acute shortage was developing to make those sort of arrangements with the American buyers, and I might add this, the foreign buyers that bought a laid-up vessel that needed repairs, I think we probably might be accused of a little sharp trading practice there, but we developed this. We asked that they buy them, as is, and where is, as the phrase goes, and assume the burden of the cost to put them into operating condition. I think I might add, speaking alone for myself, that in the light of our giving them the money, in most cases, with which to buy them, I thought I would try and get back as much of it as I could by having them pay for the repairs. They were so desperately in need of them, that we did do that. So, we will get back a percentage of it, if we do not get back the original loan, we are at least going to get back a part of it by that process. They agreed to do it. Now, they are pressing us to deliver those vessels. They want them. They are in as desperate shape as we are, but I do not think that is going to have any great influence with the needed vessels to the American market, because of the purchase by the Americans of the liberty tanker now being moved out of lay-up and put into this business-nobody would look at a so-called Liberty, Congressman, until within the last 2, 3 or 4 weeks, and frankly I can understand why. They carry half of the capacity of the T-2. They cost as much to operate, and were it not for the desperate need of transportation, we probably could not give them away, except to the foreigners. Well, fortunately, the foreigners got none of those, because the American demand came up and they have been allocated entirely to American corporations, and in each case they agree when they get them-I think this is true, Mr. Helmbold. Mr. HELMBOLD. Yes. Mr. MCKEOUGH. That they will use that tanker in the domestic service until the 1st of May. Mr. HALL. You are referring to these tankers now that were turned over to you by the Navy? Mr. MCKEOUGH. Yes; to a degree, because the same process of sale is followed, but generally I am speaking of the over-all picture. Mr. HALL. That is important for this reason: My recollection is the same as yours, that the industry said that if they had 40 more tankers plying coastwise, they would be able to meet this emergency. Mr. MCKEOUGH. That is right. Mr. HALL. Now, it is very important, in view of your testimony, whether or not these 24 tankers, or whatever the number is that have gone into the coastwise or domestic trade————— Mr. MCKEOUGH (interposing). Will be enough. I see your point, and I think it is well taken. If you will bear with us, we will endeavor to obtain the information, and we will see who they have been delivered to. Mr. HALL. And where they are, to whom they have been delivered? Mr. MCKEOUGH. Yes; and we, will see if we can develop that information. (The matter referred to is as follows:) TABLE A.-Tankers sold and delivered or to be delivered from operating fleet to buyers Jan. 1, 1948, to date, for retention in domestic trade TABLE A.-Tankers sold and delivered or to be delivered from operating fleet to buyers, Jan. 1, 1948, to date, for retention in domestic trade-Continued Agree to retain vessels Caribbean or United States Agree to retain vessels Caribbean or United Do. Agree to retain vessels Caribbean or United States Agree to retain vessel in trade from Caribbean or See Southern Trading Co. Agree to retain vessels in trade from Caribbean or United States Gulf to United States North Atlantic until May 1, 1948. Company has agreed to retain numerous vessels acquired under charter in domestic trade. Vessel chartered to Socony-Vacuum, which see. Agree to retain vessel in trade from Caribbean or United States Gulf to United States North Atlantic until May 1, 1948. To operate United States Gulf-North Atlantic- Vessel charter to Royal Petroleum Corp. for 10- Agrees to retain vessels in service in Caribbean or Do. Agrees to use of vessels, Caribbean to United States North Atlantic ports, until May 1 (vessels not delivered). Do. |