The following are typical reports on conditions: "Crew Trouble Steamship Southlure, months of July and August.

"In line with your request under date of July 14th there follows a partial list of labor conditions under which we are operating this vessel.

"On July 7th, in the port of Boston, Rank and File delegates came aboard this ship, and aided by the previous missionary work of two of the deck department men, they organized the ship from the old I. S. U. Rank and File. No effort, however, was made in Boston to delay the ship, and we sailed on time. "On July 9th and 10th in Philadelphia demands came thick and fast, and some of them are here listed for your information:

"1. A deck Engineer was to be carried.

"2. Oilers could not oil deck machinery.

"3. Firemen were to remain in the fireroom; could not work outside there; and, furthermore, could not work above ten feet off the floor plates.

"4. Wipers were to be carried to blow boiler tubes, or else the fireman was to be paid overtime each time that he did them.

"5. Sailors on the morning watch could not wash down, despite the fact that this ship carried an Iron Mike, and they would perform no other work, not even shining brass in the wheel house.

"6. Stewards department could not work over eight hours, and the delegate claimed that this ship should carry nine men in that department.

"Overtime in the Stewards Dept. was out of proportion so the delegate and myself worked out a schedule whereby every man in the Department could read off the exact time that he was to spend on duty each day; also the duties that he would have to perform.

"After spending an hour in the offices of the Shipping Comm. on sailing day, I returned to Camden where the ship lay, and straightened things out the best I could, put on a deck engineer, granted overtime to the firemen for blowing tubes, put the extra man in the stewards department, signed on, and finally sailed about an hour late.

"On July 15th we arrived in New Orleans, and five delegates came aboard the ship in a body representing all departments and the Mates and Engineers. Everyone was soon signed up, myself the last, for I resent being forced into anything against my will, but was quietly told that they had nothing against me, wanted me to join, and did not want to pull a strike on this ship. I joined.

"We proceeded to Texas, and upon our return the M. M. & F. delegate gave the Second Mate a letter setting forth the fact that whenever a Mate stood a night watch and the cargo was being worked, he was entitled to overtime; also a night Mate and Engineer were to be carried, when in port.

"This letter did not agree with the tentative agreement which had been given me by the New Orleans office, but for voyage No. 26 overtime was paid on this basis, and in the port of New Orleans a night Mate and Engineer were furnished

once.

"August 5th we arrived in Philadelphia and paid off. The steward tried to place his brother here as a cook. This I refused to allow as the man had paid off the ship in New Orleans some five weeks or so before with syphilis. Someone in the crew called a general meeting aft to compel me to carry him as a messboy, but nothing came of the meeting as the man was both sick and an alien, and I threatened to call a doctor to disqualify him. Most of the crew were with me, and I won my point. However, this incident serves to show the methods and extremes that the men will go to nowadays to force men upon an employer.

"On August 12th in New Orleans we shipped an A. B. named Eugene Hendershott, Certificate Z 94363. This man had to be relieved in Pilot waters because he claimed that the ship did not carry quartermasters. August 20th we returned from Texas to New Orleans and I found out that Hershott had absented himself from the ship from eleven in the morning right on through five pm, leaving the ship on the grounds that he was the deck delegate aft and that he had to go to the Union Hall to see about some business. What he really did was to go to the Steamboat Inspectors, where getting no satisfaction, he went over their heads to the Maritime Comm. and lodged the following complaint:

"1. That living conditions aboard this ship were unbearable.

"2. That the toilets aft were too close to the messrooms.

"3. That all fittings in the crew toilets should be porcelain.

"4. That a steel bulkhead should be removed from the messrooms aft.

"5. That the heat from the steering engine room penetrated the messrooms. "6. That there was no ventilation aft.

"7. That all the crew were not on watch.

"Hershott was the typical sea-lawyer type--dirty, lying, and ill-kept--an agitator with whom there was no reasoning at all. He had forced himself into the delegates job aft, and even boasted that he had caused a Swayne and Hoyt ship on the west coast to rip out a messroom aft and stop carrying passengers, and that he had also tied up a Matson Line vessel on the coast due to a dispute over half a lemon.

"Leaving New Orleans, Hershott was drunk, lay in his bunk and was either unable or refused to turn to securing the ship for sea. The entire crew worked from 7 in the morning until noon, secured the 16 cargo booms and placed the tarps on the hatches. In the afternoon the mate told them to turn to again and finish securing the ship for sea, putting on the devil's claws on the anchor chains, and driving wedges in the various hatches, throwing debris overboard, etc. None of them turned to, and undoubtedly Hershott was at the bottom of the whole thing.

"Sunday morning I went aft with the mate and lined up the crew in the forecastle, told them exactly what I thought of the whole thing; but I had photographed the hatches and decks as evidence, and that I fully intended to have them all before the steamboat inspectors in New York upon our arrival, as the ship was in an unseaworthy condition and that there were only on the average of about 6 wedges pushed in hand tight in each hatch out of a total of some 54.

"The above lengthy description I trust will serve to give you an idea of some of the problems that we encounter in these ships in the course of a voyage. One fact also stands out-that there has been a decided let down in all work here, and that in all departments a good hard-working man will be slowed down by the others, until he also acquired the same slow gait as his fellow workers." STATEMENT OF B. C. WILSON, CHIEF ENGINEER, STEAMSHIP "SCANSTATES," VOYAGE 40

"NEW YORK,
"Sailing day.

"COMMENCEMENT OF VOYAGE 40, F. H. COOK, ENGINE DELEGATE

"The first thing he did was to inform me that he was going to work according to union working rules, to which I agreed. When we got out to sea he told the crew members that the oilers would do no cleaning work whatsoever, or anything outside of just standing watch. Everything went along all right to Copenhagen. "At Copenhagen.-We had to hold the ship 15 minutes at Copenhagen for F. H. Cook and John Carr, fireman. I sent a man ashore after them and they both came back in an intoxicated condition.

"At Gdynia.-Cook asked me to clean boilers on Labor Day, at which time I was unable to cut out a boiler, and I told him no.

"Leaving Wiborg.-Cook sent two chits to the bar for two bottles of whisky with my O. K. on them. I did not O. K. these chits. Then the bartender brought these chits to me and when I told him that it was not my signature he refused the whisky. He gave me the chits, which I placed in my desk. However, at the present time these chits cannot be found and have evidently been removed from my desk.

"At sea between Wiborg and Kotka.-Cook came to my room and told me he was going to pull a sit-down strike in Copenhagen if I did not give him an issue of whisky. I told him no and walked away from him and went up in the lounge. Then he came again to the bar and threatened the bartender because he had turned the chits over to me. He then came back to my room and was arguing with me about the sit-down strike in Copenhagen. I told him I was issuing no whisky to any member of the crew. He went away and came back with the deck delegate, P. J. Comady, and the stewards' delegate, Frank Wamsey, and all three were intoxicated. I refused to talk to any of them.

"Arrival in Kotka.-I wanted the firemen to turn to cleaning boilers. The engine delegate, Cook, informed me that not a man of the crew would work on boilers while in the port of Kotka. The crew at this time was on day work and would not work on the boilers while vessel was at Kotka.

"At Copenhagen.-The fireman, Carr, came to my room and started to argue about drink and wanted a bottle. He was in an intoxicated condition. I evaded an answer and walked up into the lounge to stay away from members

of the crew. He followed me up to the lounge, but I went ahead out on the promenade deck to keep away from him.

"Inefficiency and carelessness of M. J. Holland.-When I came aboard the ship last voyage-voyage 40-at Wiborg at 2 a. m. I smelled ammonia coming out of the relief valve on the ship's side. I went to the engine room and could not find the oiler on watch-M. J. Holland. I went to the ice-machine room and found that the circulating pump that supplies water to the ice-machine condenser and compressor had been stopped. It apparently had been stopped for over an hour. Both release valves on compressor and condenser were blowing and all of the ammonia was gone from the system.

"I went looking for the oiler-Holland-and not finding him, I called the third assistant engineer. He went into the ice-machine room and the oiler had apparently come back from on deck or the crew's messroom, where he generally sits. I warned him several times before during the voyage not to leave the engine room while on watch. He apparently ignored my warnings during the entire voyage.

"We had just completed cleaning up the engine room, and the following day when at sea the oiler-Holland-started the pump on the Diesel fuel-oil tank and walked away, leaving the pump running. The tank overflowed, spilling oil all over the engine. He did the very same thing when vessel was just going off quarantine while entering the port of New York."

Most North Atlantic passenger traffic during the winter months is very slack. This is particularly true of the American Scantic Line on its winter trips to the Baltic, and it has been customary for us greatly to reduce the stewards' departments of our passenger vessels during this slack season. On November 4 the steamship Scanmail was preparing to sign on for her next voyage and all departments of the unlicensed personnel refused to sign on until we would agree to carry a full complement of stewards. This resulted in our being compelled to sail the vessel with 20 stewards and 17 passengers. When the steamship Scanpenn arrived on November 11 we called the crew together and explained to them that it was necessary for us to make some reduction in their crew; that it would cost us $2,000 or $3,000 a month unnecessary expense, which we were willing to assume during the winter months, in order to keep as many of them employed as possible, if they would take a sensible attitude toward a limited reduction of the unnecessary personnel. Our men agreed that this was a reasonable request and said that they would agree if we would increase the proposed complement by one more man than we intended carrying. To this, of course, we consented. The next day, the union delegates came aboard and harangued the crew into refusing to sign on under the agreement they had made with us the day before. The men refused to sign on and in order to sail the ship we were compelled to sign on a steward's department for a full capacity of 85 passengers to attend to 15 passengers. When the next ship arrived, owing to the bad advice of the union delegates, the company took the only course left open to it, and discontinued all further attempts to operate the ships as passenger vessels in the winter months.

The following letter is self-explanatory:

Director R. S. FIELD,

Bureau of Marine Inspection and Navigation,

NOVEMBER 4, 1937.

Department of Commerce, Washington D. C. DEAR SIR: This company wishes to prefer charges against 35 members of the crew of the steamship Scanpenn under R. S. 449,4450, and section 13, paragraph h of Public, No. 808-amendments to Seaman's Act-in that these men "wrongfully or unreasonably refused to perform their official duties after having signed articles or while employed on any vessel," etc.; names and rating will appear later.

These crew members, 35 of a total of 56 unlicensed personnel, left the vessel and went ashore at 9 p. m., or thereabouts, October 19, 1937, at Gdynia, Poland, without permission or authority and against the orders of the master and by staying ashore delayed the sailing of the vessel for about 4 hours.

The facts of the case appear to be as follows:

Steamship Scanpenn arrived at Gdynia at 8:33 a. m., October 19. The master, Capt. H. S. Mayo, after consultation with the agent, set the sailing time for 7 p. m. of the same date.

Loading was started at 9 a. m. and, due to delays in receiving cargo, it was continued until 11:30 p. m. The time of arrival of the late cargo could not be predicted, nor could the finishing time, after it had appeared that some of the cargo would arrive late.

At about 9 p. m. the crew noted that the cargo was not finished loading, and held a meeting which sent two representatives to inform the master that the crew had left the vessel and had gone in the city of Gdynia and would not return until the master sent for them; and that their action was a protest against the sailing time having been posted as 7 p. m. while the vessel was not yet ready to sail at 9 p. m., thereby causing the crew the loss of 2 or more hours' time which they might have been able to spend ashore.

The first of the 35 men returned at 10:30 p. m. and the last at 2:30 a. m. October 20. The vessel finally sailed for Copenhagen, Denmark, at 3: 15 a. m. We call to your attention:

(a) Report of Capt. H. S. Mayo, master, containing names of the absentees. This report is a copy of the entry made in the official logbook. Captain Mayo did not log these men under R. S. 4596-Offenses and Punishments-as it was his opinion that they deserved greater disciplinary action than is provided in section 2 of the same.

(b) Two paragraphs of letter from Mr. W. Jasinski, Gdynia manager. (c) Paragraph from report of our traveling operating assistant, Capt. H. E. Staman.

The vessel's itinerary for the remainder of the voyage is expected to be: Sail from New York, noon, Thursday, November 4, arrive at Philadelphia, 7 a. m., Friday, November 5. Sail from Philadelphia, midnight, Friday, November 5, arrive at Baltimore, 9 a. m., Sunday, November 7. Sail from Baltimore, 6 p. m., Tuesday, November 9, arrive at New York, 6 a. m., Thursday, November 11. Sail for Gothenburg, 6 p. m., Friday, November 12.

In view of the fact that the vessel will probably pay off at Baltimore, whereupon part of the crew will disperse, and will be in New York for only 36 hours thereafter, during which time a crew must be signed on for the succeeding voyage, we respectfully request that you expedite an investigation into these charges.

Very truly yours,

AMERICAN SCANTIC LINE, INC.,
B. G. FUREY,

Marine Superintendent.

I have not in this affidavit attempted to set forth all of our many labor difficulties with our seagoing personnel, experienced during the last few months, but have merely selected a few cases that were illustrative of conditions that exist. It should not be judged that we are abetting the situation by failure on our part to take a firm stand. To the contrary, we feel that we have done everything possible to improve conditions and still operate our ships so long as this is possible. It is rapidly approaching the point where it will be impossible to continue operation. The operation of a commercial ship does not require highly skilled personnel. On the other hand, there is probably no industry that is so completely dependent upon the conduct of its personnel as is a ship at sea.

We believe that we maintain an enlightened modern labor policy. We endeavor to observe both the letter and spirit of the Wagner Act. We have no company unions or associations of any nature whatsoever, and publicly advise our officers and men they may associate with any labor organization they see fit, publicly or privately, without it having the slightest bearing upon their employment with us. We pay the general going wage and in many instances above the going wage. In addition to this we pay large sums annually directly to the men in cash as bonuses for continuous service with the company, for good records with regard to the use of fuel, stores, and repairs, and for the safe navigation of the vessel and the safe handling of the cargo. Our standing orders to our masters and officers with regard to their crews, which have been in effect for many years, are as follows:

"THE SHIP'S CREW

"Crew to be well housed.-Crews quarters shall be kept clean, dry, and comfortable.

"Painted white.-They shall be painted white throughout and made generally livable with proper shower, washing, and toilet facilities, always kept in repair.

"Free from insects, clotheslines, etc.-The quarters shall be kept free from insects of all kinds. So far as possible clothing and personal effects shall be inspected before being brought on board to insure them free from bugs. Clothing shall not be permitted hung about the quarters. Proper locker facilities, 32437-38-pt. 8-4

stowage racks, and drying lines shall be provided and compelled to be used. “All furniture movable.-Lockers, bunks, tables, shelves, furniture shall be secured with permanent bolts that can be easily removed so that all such fixtures can be readily and easily removed from the compartment for cleaning. "Clothesline to be rigged.-A convenient clothesline shall be rigged for the convenience of the crew outside of their quarters and they shall be required to hang their drying clothes on this line and not elsewhere.

"Mattresses to be burned.-At the end of each voyage, or once every 3 months in case of short voyages, all crews' mattresses shall be burned.

"Personnel: Crew to be well treated.-Masters shall attend to the wants of the crew to see that they are properly treated, fed, and that their lives and limbs are not endangered by failure to provide proper lights or maintaining of gear, equipment, etc., in prime condition."

According to the press, on December 15th before a Senate committee, Mr. Mort Borow read into the record an affidavit of Mr. Frank Frey, formerly radio officer of the Steamship Commercial Alabaman, of the Moore & McCormack Steamship Lines, in which Mr. Frey charged that 12 strikers were replaced by mostly inexperienced men, for the most part circus hands from the Ringling Bros. Circus, which was partially disbanding at winter quarters at Tampa. The facts are that while the Steamship Commercial Alabaman was lying at Tampa, Fla., on November 9, the crew deserted her, so that she was unable to continue the voyage without obtaining another crew, which at the time was extremely difficult in Tampa. On the 11th, a new crew was signed on, of which six men came from the Ringling Bros. Circus, which was then breaking up for the winter. Four of the six men had certificates from the United States certifying that they were able-bodied seamen.

Mr. Joseph Curran, appearing as a witness for the Senate committee, introduced a letter of mine written to a radio operators' union, which letter he seemed to think was the result of some conspiracy to promote favorable action of legislation for a mediation board. The letter was not even remotely connected with any matter before Congress in any form whatsoever.

The reputation of American seamen is daily growing in disrepute. There is a wide-spread dissension among the men themselves and many are under fear and afraid to express themselves or take any independent action.

Sworn to before me this 14th day of January 1938. [SEAL]

ROBERT C. LEE.

LOUIS F. NOZIGLIA, New York County No. 73, Kings County No. 126.

Term expires March 30, 1939.

The CHAIRMAN. We have a statement presented by Mr. H. Gerrish Smith, president of the National Council of American Shipbuilders, protesting against the foreign construction of American ships. This will be received for the record.

(The statement referred to is as follows:)

STATEMENT PRESENTED BY H. GERRISH SMITH, PRESIDENT, NATIONAL COUNCIL OF AMERICAN SHIPBUILDERS, BEFORE THE SENATE COMMITTEE ON COMMERCE, IN CONNECTION WITH SECTION 9 OF SENATE BILL 3078, RE CONSTRUCTION OF AMERICAN VESSELS ABROAD

I appear before your committee as president of the National Council of American Shipbuilders, representing fully 90 percent of the shipbuilding and ship-repairing capacity of the United States.

It is respectfully reguested that the following statement in opposition to section 9 of S. 3078 (lines 8 to 25, p. 8, and lines 1 to 3, p. 9), which would amend section 502b of the Merchant Marine Act of 1936, be incorporated and made a part of the hearings on S. 3078.

In brief, the proposed amendment would authorize the Maritime Commission under certain conditions to construct subsidized American vessels abroad if the construction cost differential exceeds 33% percent but not 50 percent of the cost in the United States and which would further permit an applicant to construct a subsidized vessel abroad, without the approval of the Commission, if the construction cost differential exceeds 50 percent of the cost in the United States. My reasons for opposing this section of the bill are:

First. That such legislation would be an opening wedge for the admission of foreign-built vessels to our coastwise trade.