AMENDMENTS ADOPTED BY SENATE BUT NOT SHOWN IN S. 1632 (REPORT No. 925), CALENDAR No. 971 Section 303 (j): Page 9, line 25. Insert after "Zone" the following: "Provided, That the transportation of passengers or property to or from a place in the Philippine Islands or to or from a place in the Canal Zone shall be deemed transportation in foreign commerce and subject to the provisions of this part applicable to common carriers by water in foreign commerce: Provided further, however, That transfer or trans-shipment of passengers or property at the Canal Zone shall not affect the character as interstate commerce, within the meaning of this part, of transportation of such passengers or property between places in the United States or its territories or possessions." Section 306 (e): Page 20, line 17. Insert after "water" the words "not excluded from all the provisions of this part pursuant to section 302 (b)." Section 308 (c): Page 20, line 6. Change "ninety days" to "one year." Page 30, lines 21-23. Strike "90-day period of limitation in subparagraph (2) or of the" in lines 21-22, change "subparagraph" in line 23 to "subparagraphs", and in line 23 insert “(2) and" before "(3),”. Section 310 (a): Page 24, lines 9 and 13. In both lines change "in 1934" to "prior to the date of the enactment of this act". Section 310 (f): Page 38, line 22; page 39, line 1. In both lines change "in 1934" to "prior to the date of the enactment of this act." Section 313 (a): Page 45, line 2. Insert "such" after "more." Page 46, line 2-3. Strike "or an interstate contract carrier by water." Section 314. Page 49, line 9. Strike "by water." Section 318 (b): Page 52, line 25. Strike "or registration." Section 319 (a): Page 54, line 3. Change "the preceding sections of" to "relating to interstate transportation." Section 319 (c): Page 55, lines 20-21. Insert comma after "transportation" in line 20 and strike "or service" in lines 20-21. Section 320: Page 58, line 21. Strike "or handled." Page 59, line 5. Strike "or handled." Page 59, lines 12 and 13. In both lines strike "or handling." Section 321: Page 74, lines 6-9. Strike "and the Merchant Marine Act, 1928, and the powers and duties vested in the United States Shipping Board by the Intercoastal Shipping Act, 1933." Page 74, line 9. Insert after "and" the words "those vested in such Board by." NOTE. In the Senate amendments to paragraphs (a) and (f) of section 310 the word "act" should be changed to "part." MINOR PERFECTING AMENDMENTS TO S. 1632 The page and line references are to the bill as reported "May 13 (calendar day, June 21), 1935", Report No. 925, Calendar No. 971. Section 302 (b): Page 3, line 10. Insert "with" after "competitive." planation to correct typographical omission.) (Ex Page 3, line 19. Change "section 302 (a)" to read "paragraph (a) of this section." Explanation—(Improvement in language. Not important.) Page 3, line 24. Omit comma after "arrangement." (Explanation-to correct typographical error.) Section 303 (c): Page 5, line 3. Strike "or" before "commerce" and add "or" before "as." (Explanation-to correct typographical error.) Page 5, line 4. Change "transport" to "transports" and add comma after "commerce." (Explanation-to correct typographical error.) Section 303 (h): Page 9, lines 2-4. Strike the sentence beginning in line 2 and ending in line 4. (Explanation this sentence was connected with the wharfinger provisions and should have been eliminated when they were eliminated.) Page 9, lines 12-14. Strike the clause beginning with the comma in line 12 and ending with the comma in line 14. (Explanation-this clause extends regulation over transportation between places in the same territory or possession (equivalent to intrastate transportation). Such transportation was excluded in the Motor Carrier Act and there seems to be no particular need for including it here. The change, however, is not important.) Section 303 (j): Page 10, line 1. Insert "And" before "provided" and insert "further" after the same word. (Explanation-this change is made necessary by the two provisos which were added by amendment from the floor after the word "Zone" in line 25, p. 9.) Section 304 (a): Page 10, line 11. Restore the words "to the extent" which are shown as stricken out. (Explanation-to correct typographical error.) Section 305 (a): Page 15, line 12. Strike the semicolon. (Explanation-to correct typographical error.) Pages 15-16. Change the semicolon in line 23 of page 15 to a period and strike out what follows to and including line 23 of page 16. (Explanation-this change is in keeping with omission of mandatory through route provision and avoids duplication of lines 2-7, p. 17.) Section 306 (a): Page 18, line 6. Strike last comma in line. to correct typographical error.) (Explanation Section 306 (d): Page 20, line 13. Insert comma after "tariffs". tion-typographical improvement.) (Explana Section 306 (e): Page 20, line 21. Insert comma after "Commission". (Explanation-typographical improvement.) Page 21, line 4. Insert comma after "undertaking". (Explanation-typographical improvement.) Section 307 (f): Page 26, line 16, Change "any" to "the". (Explanation— typographical improvement.) Section 308 (a) (4): Page 30, line 24. Change "commerce" to "common." (Explanation-to correct typographical error.) Section 309: Page 33, line 11. Change "shall take" to "takes". (Explanation-typographical improvement.) Section 310 (a): Page 35, line 8. Insert at the end of line 8 the following: "Whenever any interstate common carrier conditionally exempted by the provisions of section 302 (b) shall, by order of the Commission, be made subject to regulation as provided in this part, the Commission shall, upon application and without further proceedings, issue a certificate to such carrier in operation at the time of its order." (Explanation-this was explained in my letter of July 10, 1933, to Senator Wheeler. Under sec. 302 (b) the Commission may exempt certain common carriers from regulation, but may also rescind such action later on. The proposed amendment is designed to provide the carrier with the necessary certificate in the latter event.) Section 310 (b): Page 35, lines 14-23. Strike the sentence beginning in line 14 and ending in line 23. (Explanation-this sentence was made unnecessary by the Harrison amendment, made on the floor, which gave certificates or permits to those operating "prior to the date of enactment of this act" instead of to those operating "in 1934.") Section 310 (e): Page 38, line 13. Change "(f)" to "(e)". (Explanation-to correct typographical error.) Section 310 (f): Page 39, line 22. Insert at the end of this line the following: "Whenever any interstate contract carrier conditionally exempted by the provisions of sec. 302 (b) shall, by order of the Commission, be made subject to regulation as provided in this part, the Commission shall, upon application and without further proceedings, issue a permit to such carrier in operation at the time of its order." (Explanation-the explanation is the same as in the case of the proposed amendment to sec. 310 (a), on page 35.) Page 39, lines 13-22. Strike out the sentence beginning in line 13 and ending in line 22. (Explanation—the explanation is the same as in the case of the amendment striking out lines 14-23 on p. 35, sec. 310 (b).) Section 310 (g): Page 40, lines 4-5. Strike the words "from the application or from any hearing thereon". (Explanation-these words do not appear in the corresponding certificate paragraph, sec. 310 (c), and should either be omitted here or inserted there. They seem unnecessary, and therefore the recommendation is to omit.) Page 40, line 16: Insert a comma after "water". cal improvement.) (Explanation-typograph Section 312 (a): Page 42. Strike the whole paragraph. (Explanationthere has been considerable opposition to this power to revoke certificates or permits. It was amended, along lines followed in the Motor Carrier Act, to make it less objectionable, but water carriers are more responsible and have more capital tied up than the general run of motor carriers, and can be reached effectively through fines or injunction proceedings. Therefore, it seems that the paragraph could be omitted without substantial loss.) Page 42, line 22. Strike "(b)" and "such". (Explanation-these changes should be made if par. (a) is stricken.) Page 42, line 23. Strike the comma after "certificate" and restore the "or". (Explanation-to correct typographical error.) Section 313 (a): Page 44, line 7. Restore the comma after "thereof". (Explanation to correct typographical error.) Page 45, line 1. Restore the words "or an interstate contract carrier by water". (Explanation-the committee eliminated provisions which would have authorized the consolidation, etc., of contract carriers with each other or with common carriers, but, by striking out the words above indicated, left a loophole for the acquisition of common carriers by contract carriers by reason of the broad definition of "person (see line 25, p. 44, and sec. 303 (a)). Therefore the words should be restored.) Section 314: Page 49, lines 3-11. Strike the proviso beginning in line 3 and ending in line 11. (Explanation-this proviso is now unnecessary, as the provisions of Securities Act, 1933, so far as they relate to securities issued by any common or contract carrier under Interstate Commerce Commission regulation, were repealed by the Motor Carrier Act, 1935.) Section 315 (a): Page 50, line 2. Insert after 'person" the words "in relation to facilities, service, or traffic affected by the provisions of this part”. (Explanation this limitation seems desirable in the light of similar provisions in part I of the Interstate Commerce Act and in the Shipping Act, 1916.) Section 317 (a): Page 51, lines 21-23. Substtiute for 'given" in line 21 the words "or order is served", and for "when notice is served" in lines 22-23 the words "of service". (Explanation-clarifying amendment.) Section 317: Page 52, line 3. After this line insert the following new paragraph: "(c) The Commission may suspend or modify its orders upon such notice and in such manner as it shall deem proper." (Explanation-par. (5) of sec. 16 of pt. I, included in sec. 318 (a) by reference, relates to the service of orders and is superfluous in view of the provisions of sec. 317 (a). Par. (6) of sec. 16 of pt. I, also included in sec. 318 (a) by reference, likewise relates to orders and belongs in sec. 317. It is set out above as the new par. (c).) Page 52, line 4. Change "(c)" to "d". (Explanation-made necessary by the insertion of the new par. (c).) Page 52, line 12. After this line insert the following new paragraph: “(e) It shall be the duty of every water carrier, its agents and employees, to observe and comply with such orders so long as the same shall remain in effect." (Explanation-this is the substance of par. (7) of sec. 16 of pt. I, included in sec. 318 (a) by reference. It relates to orders and should be set out in sec. 317.) Section 318 (a): Page 52, lines 14-16. Strike the comma at the end of line 14 and the words "section 16, (5), (6), (7), (8), (9), (10), (12), and (13)" in lines 15-16. (Explanation-the reasons for eliminating reference to pars. (5), (6), and (7) of sec. 16 of pt. I are given above. Pars. (8), (9), and (10) contain forfeiture provisions which seem unnecessary in view of the provisions of sec. 318 (b) and sec. 319 (a). The reasons for eliminating reference to pars. (12) and (13) are given below.) Section 318 (b): Page 52, line 24; page 53, line 1. Insert, after "thereunder", in line 24, the words "(except an order for the payment of money)", and at the end of line 1 insert a comma and the words "or, in case of an order of the Commission, any party injured by the failure to comply therewith or the violation thereof". (Explanation-these changes incorporate the substance of par. (12) of sec. 16 of pt. I, reference to which in sec. 318 (b) is above eliminated.) Page 53, line 25. After this line insert the following new paragraph: “(d) The copies of schedules and classifications and tariffs of rates, fares, and charges, and of all contracts, agreements, and arrangements of water carriers filed with the Commission as herein provided, and the statistics, tables, and figures contained in the annual or other reports of carriers made to the Commission as required under the provisions of this part shall be preserved as public records in the custody of the secretary of the Commission, and shall be received as prima facie evidence of what they purport to be for the purpose of investigations by the Commission and in all judicial proceedings; and copies of and extracts from any of said schedules, classifications, tariffs, contracts, agreements, arrangements, or reports, made public records as aforesaid, certified by the secretary, under the Commission's seal, shall be received in evidence with like effect as the originals." (Explanation-this is the substance of par. (13) of sec. 16 of pt. I, reference to which in sec. 318 (b) is above eliminated.) Section 319 (b): Page 54, line 23. Restore the word "interstate." (Explanation-typographical improvement. Foreign commerce is taken care of in sec. 321.) Section 319 (c): Page 55, line 14. Strike the comma after "knowingly" and restore "interstate." (Explanation-typographical improvement.) Page 55, line 19. Insert after "obtain" the words "or attempt to obtain." (Explanation These words are in the corresponding provision of pt. I and obviously are required here.) Section 319 (f): Page 57, lines 17 and 20. Insert a comma after "carrier" in line 17 and also after "information" in line 20. (Explanation-typographical improvements.) Section 321: Page 7, lines 5 and 10. Insert comma after "amended" in line 5 and strike "herein" in line 10. (Explanation-to correct typographical errors.) Section 325: Page 79, lines 13, 17, and 18. Change "October 1935" in lines 13 and 17 to "July 1936", and change "April 1936" in line 18 to "January 1937." Explanation-changes made necessary by the failure of the bill to pass at the last session.) MAJOR AMENDMENTS TO S. 1632 (REPORT No. 925), CALENDAR No. 971 Section 309: Page 33, line 25. Change period to colon and insert the following: "Provided further, That without limiting the power and authority vested in the Commission, it shall be unlawful for any interstate common carrier by water by means of coercion, whether directly or indirectly, or through the medium of an agreement, conference, association, understanding, or otherwise, to prevent or attempt to prevent any other such carrier from serving any port accessible to ocean-going vessels, situated on any improvement project authorized by the Congress, or through it by any other agency of the Federal Government, lying within the limits of continental United States at the same rates which it charges at the nearest port regularly served by it." Section 321: Page 74, line 2. Insert "(a)" after "321." Page 74, line 25. After this line insert the following: "(b) Without limiting the power and authority vested in the Commission, it shall be unlawful for any common carrier by water in foreign commerce by means of coercion, whether directly or indirectly, or through the medium of an agreement, conference, association, understanding, or otherwise, to prevent or attempt to prevent any other such carrier from serving any port accessible to ocean-going vessels situated on any improvement project authorized by the Congress, or through it by any other agency of the Federal Government, lying within the limits of continental United States at the same rates which it charges at the nearest port regularly served by it. Explanation-these amendments, one relating to interstate commerce and the other to foreign commerce, are desired particularly by the "inner" ports in California, like Stockton or Sacramento. They fear a conspiracy to prevent steamship companies from serving these ports at the same rates as are accorded San Francisco. Whether or not they ought to have the same rates, there is no reason why a conspiracy or coercion preventing such service should not be made unlawful, leaving the matter to regulation by the Commission. The amendments safeguard such jurisdiction. A somewhat similar but more stringent provision is found in Section 2 of the Intercoastal Shipping Act, 1933, but the Secretary of Commerce recommends its repeal in his last annual report.) I am also informed that carriers in the foreign-trade field and the Shipping Board Bureau have both worked for a number of years to secure a definite prohibition against misclassifications and other false statements of shippers. A bill to correct this situation (S. 3467) passed the Senate recently and seems likely to pass the House. Its progress should be watched and if it is enacted, it should probably be incorporated in S. 1632. STATEMENT OF HON. FRANK MCMANAMY, COMMISSIONER, INTERSTATE COMMERCE COMMISSION Mr. McMANAMY. My name is Frank McManamy; I am a member of the Interstate Commerce Commission and chairman of its legislative committee. I appear on request of the chairman of the committee to present the views of the Commission with respect to the bill under consideration. My statement will be comparatively brief. On May 7, 1935, by direction of the Interstate Commerce Commission, I appeared before your committee in support of the bill under consideration, H. R. 5379. This bill for the regulation of water carriers in interstate and foreign commerce is a part of the plan proposed by the Federal Coordinator of Transportation for coordinating the regulation of all forms of transportation. This bill was unanimously approved by the Interstate Commerce Commission in transmitting the Coordinator's report to the President and Congress under date of January 23, 1935. Its passage was also recommended by the Commission's legislative committee in a report to Chairman Rayburn of the House Committee on Interstate and Foreign Commerce under date of April 2, 1935. That report suggested a number of changes for the purpose of perfecting the bill, which I do not think necessary to discuss in this statement. Since the previous hearing on H. R. 5379, the Senate Committee on Interstate Commerce has reported the corresponding Senate bill, S. 1632, with certain amendments. Among other changes, the provisions regarding wharfingers were omitted, and it is understood that they will be incorporated in a separate bill. Under date of January 21, 1936, in transmitting to the President and Congress the Coordinator's Fourth Report on Transportation Legislation, the Commission said: 1. We have previously recommended the enactment of legislation regulating common carriers by water. We affirm that recommendation. If common carriers by water are left unregulated, unfair competition between them and other transportation agencies will be inevitable, to the injury, if not the ruin, of the competitors. The Coordinator further expresses the view that the regulation of common carriers by water should be under the same authority as the regulation of other forms of transportation. With this we agree. In our judgment regulation of competing agencies of transportation by separate authorities would result in unnecessary expense arising from duplication of staffs and conflicts between such separate authorities would be a continual source of annoyance to the public and to the Congress. 2. Regulation of water carriers would not be complete without appropriate regulation of docks and terminals and those in charge thereof. We therefore join with the Coordinator in his recommendation for appropriate legislation for the Federal regulation of wharfingers. At the present time the Federal regulatory authority over water carriers is divided and incomplete. The Interstate Commerce Commission has jurisdiction over joint rates, fares, and charges for interstate transportation partly by railroad and partly by water, together with the divisions of such rates, fares, and charges as between the respective carriers. It also has complete jurisdiction over all the interstate rates, fares, and charges of water lines which are owned or controlled by railroads, including those for port-to-port service. The principal railroad-owned water lines are the New England Steamship Co., which is controlled by the New York, New Haven & Hartford Railroad Co.; the Ocean Steamship Co. of Savannah, controlled by the Central of Georgia Railway; and the Morgan Line of the Southern Pacific Co. The Commission has no jurisdiction over the port-to-port rates, fares, and charges of other steamship lines which are not controlled by railroads. The Shipping Board Bureau of the Department of Commerce has rather complete jurisdiction over the intercoastal rates, fares, and charges between the Atlantic or Gulf and Pacific ports. It also has jurisdiction not so complete over the coastwise rates, fares, and |