Our business is directly affected by all matters which exert an influence upon the amount of Great Lakes-oversea trade, at least for the port of Chicago. Consequently, we have been greatly interested in pilotage requirements for ocean shipping on the Great Lakes and I have followed previous legislation in this field. I have given previous testimony before the House and Senate committees on bills H.R. 57 and S. 2096, respectively.

We believe that adequate pilotage requirements for the Great Lakes are necessary for the safety of navigation. However, we have naturally felt that the imposition of any unreasonable burdens upon ocean vessels trading into the Great Lakes must be avoided if the anticipated benefits to our economy from the construction of the St. Lawrence Seaway are to become a reality. Therefore, we have reviewed the proposed legislation.

In our opinon S. 3019 overcomes many of the objections which were made to prior legislation which was considered in this field. Stringent pilotage requirements would be imposed for the safety of navigation in restricted waters. Adequate provisions are made to require a qualified officer for navigation of the Great Lakes on board vessels transiting the open waters of the lakes. The Secretary of Commerce would be empowered to regulate pilotage in coordination with the appropriate agency of Canada to provide for an efficient pilotage service throughout the Great Lakes. Of course, we understand that the necessary regulations and the training of the pilots cannot be accomplished immediately and a reasonable time will be necessary to deal with such matters. Nevertheless, we believe that the proposed legislation will provide the foundation for adequately dealing with the Great Lakes pilotage problem in all its facets while, at the same time, providing sufficient flexibility to deal with pilotage problems on a continuing basis.

In the past, there has been little opportunity for American citizens to participate in pilotage work because ocean vessels usually made their arrangements for the employment of pilots in Canadian waters. This was due primarily to the necessity for ocean vessels to pass through wholly Canadian waters before they arrived in the Great Lakes. Under the proposed legislation, there will be an opportunity for equitable participation in pilotage work by American and Canadian citizens, which is another desirable feature of this proposed legislation. During past hearings, we recommended the establishment of a joint international pilot commission by the United States and Canada to deal with this problem. In our opinion, the regulatory system which would be established by this legislation would adequately accomplish the same purpose. As a matter of fact, a joint committee might not be able to serve as efficiently because of the need for frequent consultation between the members and regular governmental departments of the two countries. The powers delegated to the Secretary of Commerce in this new bill, together with the authority to coordinate the pilotage system with the appropriate agency of Canada, is probably a better approach to the problem than a joint commission from a practical standpoint. We respectfully urge the prompt passage of S. 3019.

Senator LAUSCHE. Do you have a statement?

Mr. PEO. I am Capt. Eugene O. Peo, International Shipmasters Association of the Great Lakes, Riverside Drive, Ogdensburg, N.Y. I have no prepared statement. I was talking to Mr. Bourbon, and we are going to prepare a statement and send it to your committee. Senator LAUSCHE. All right. You will be permitted to send in your statement and it will be included in the record.

Mr. DUSING. Sir, my name is Kenneth W. Dusing. I would like to put a statement into the record and also reserve the right to appear tomorrow, if it appears I could.

Senator LAUSCHE. That will be granted.

(The statement follows:)

STATEMENT OF KENNETH W. DUSING, VICE PRESIDENT IN CHARGE OF OPERATIONS, GREAT LAKES OVERSEAS, INC., CHICAGO, ILL., IN SUPPORT OF S. 3019

My name is Kenneth W. Dusing and I am vice president in charge of operations for Great Lakes Overseas, Inc., Chicago, Ill., general agents for European owners of a number of steamship lines operating between Great Lakes ports and

overseas ports. In this capacity, my organization is responsible for representing the interests of these shipowners in the Great Lakes area. At the present time, we represent the Concordia Line, Fjell and Fjord Lines, Fjell Oranje Lines, Liverpool Liners, Ltd., Orient Mid-East Great Lakes Service, Niagara Line, and Swedish Chicago Line.

I have been associated with the Fjell Line for more than 23 years, soon after Fjell commenced the first liner service from overseas ports to the Great Lakes, and I have been actively engaged in steamship operations during that time. Most of my career has involved the Great Lakes-overseas trade and, therefore, I am naturally very concerned with developing trade through the St. Lawrence Seaway.

I have closely followed the progress of proposed pilotage legislation for the Great Lakes and have participated in previous hearings which were held by this committee and the Committee on Merchant Marine and Fisheries of the House of Representatives regarding prior legislative proposals under consideration. The legislation now reflects many recommendations and suggestions which were made at previous hearings and, in my opinion, provides a satisfactory solution from the legislative standpoint to the problem of Great Lakes pilotage.

I do not believe that any interested group can validly criticize the provisions of S. 3019 with regard to the requirements for compulsory pilotage in the restricted waters of the Great Lakes system. The legislation under consideration provides for the designation by the President of the restricted waters in which ocean vessels will be required to utilize the services of registered pilots. Although the Coast Guard will continue to be the agency for licensing all U.S. pilots, as heretofore, the Secretary of Commerce will be empowered to regulate the pilotage system. Moreover, the Secretary is empowered to coordinate the pilotage service with the appropriate agency of Canada and thus provide for uniformity in the waters of the United States and Canada on the Great Lakes and, furthermore, give pilots of both nationalities an equal opportunity to qualify.

Safety of navigation on the open waters of the Great Lakes has also been protected in this legislation without discriminating against the qualified officers of ocean vessels, inasmuch as the officers comprising the regular complement of such vessels would be given an opportunity to qualify for the navigation of the open lakes. Under former legislation, the open waters of the lakes would have been closed to any ship's officer who was not an American or Canadian citizen, We believe safety of navigation will be adequately protected by the appropriate Canadian agency and the U.S. Coast Guard which are authorized to formulate the requirements, examine ship's officers, and to issue certificates to qualified officers for navigation of the open lakes. Any vessel which does not have a qualified and certificated officer on board would be required to employ a Canadian or U.S. registered pilot while navigating the open waters who would be available to direct navigation at the discretion of the master.

The delegation of powers to the Secretary of Commerce in this bill to regulate the pilotage system and the creation of an advisory committee of three members for that purpose is basically similar to the system followed by the coastal States of our Nation and the Government of Canada. It has been standard maritime practice for the States to regulate the compulsory pilotage districts in our Nation. Such systems have proved efficient and have been supported by everyone concerned including the pilots themselves. We, therefore, believe that such a system should be adopted and it provides a practical solution to the frequent problems which arise in providing pilotage services. Federal, rather than States legislation is desirable because of the number of States involved. Regulation by the several States would bring about a chaotic condition because of the lack of uniformity of their respective regulations.

Since S. 3019 accomplishes what we had previously advocated, namely: 1. Due regard for the public interest.

2. The effective utilization of navigable waters.

3. Marine safety.

4. Regulation and administration of pilotage on the Great Lakes.

We urge the prompt passage of S. 3019. I appreciate being given the opportunity to present this testimony.

54442-60- -4

Senator LAUSCHE. The following statements will also go into the record at this point:

Statement of Arthur Hendrickson, a master of steam vessels on the Great Lakes; and statement of William Bricen Miller, of the law firm of Lord, Bissel & Brook, Chicago, Ill.

(The statements follow:)

STATEMENT OF ARTHUR HENDRICKSON, MASTER OF STEAM VESSELS ON THE GREAT LAKES, IN SUPPORT OF S. 3019

My name is Arthur Hendrickson. For the past 49 years I have sailed on Great Lakes vessels. I retired last year after having been a licensed pilot since 1917 and a master of Great Lakes vessels since 1945. I have sailed and navigated vessels on all of the Great Lakes since 1945 and for the past 9 years I was employed as a master of a Great Lakes vessel commonly called a selfunloader and this particular trade involved the carriage of coal on Lake Michigan. In any one season during this period, the vessel carried about 175 cargoes of coal to all ports, both on the westerly and easterly sides of Lake Michigan, so that I am very familiar with the safety courses and also familiar with meeting car ferries that cross the lake from such ports as Milwaukee to Muskegon or Ludington.

I have been asked to study the bill before your committee which I know as S. 3019, which provides for compulsory pilotage in certain restricted areas such as the Detroit, St. Clair, and St. Mary's Rivers and for pilotage in the open waters such as Lake Huron, Lake Superior, and Lake Michigan, which are referred to as unrestricted waters.

There is no question that well-trained, experienced persons should navigate vessels in the rivers where you are required to navigate yourself on what we sailors call ranges, and it really takes some experience to navigate these areas and what is properly designated as pilotage, the same as bringing a ship into Boston, New York, or San Francisco harbors. As a master, I never allowed a second or third mate to handle the ship in narrow and confined waters that we find in these rivers but out in the open lake it is entirely different.

I feel that if a master of chief mate of a foreign ship, who has had experience in all parts of the world in laying out courses, has had a few trips on the Great Lakes, he is just as qualified to navigate these open waters as any second or third mate on the Great Lakes or even a first mate or master. We all steer by gyrocompasses; we all have direction finders, and we have ship-to-shore telephones. The safety courses are indicated on the Great Lakes charts so that it does not take the experience to run the courses in the open lake that it does in the rivers.

I have heard considerable talk about the dangers of navigating on Lake Michigan where one is likely to meet car ferries crossing the lake. In the last 20 years, to my knowledge, there have not been any serious or major collisions with car ferries. Since the introduction of the radar, which we find on American, Canadian, and foreign vessels, there is no difficulty, in my opinion, in navigating on Lake Michigan and meeting car ferries that are on crossing

courses.

Last year it was my good fortune to be invited to make a trip with Captain Lowe, the president of the American Pilotage Association, which I assume and hope will testify before your committee, over the lakes. We joined the foreign vessel Prins Willem Van Organje at Chicago, Ill., and made the trip through the lakes, ending at Montreal, Quebec. This ship was something over 460 feet long and was a combination passenger-cargo ship. I had the opportunity of spending considerable time in the pilothouse of the vessel and observing the officers on watch and how they conducted the navigation of the vessel. I was in the pilothouse or on the bridge as we passed through the Straits of Mackinac with the master of the vessel in charge, and I must say, and I am sure Captain Lowe will agree with me, that the ship was excellently handled.

I also was on the bridge at various times while the ship was navigating on Lake Michigan, Lake Huron, and Lake Erie when she was without an American or a Canadian pilot but was in charge of the ship's officers, and they did an excellent job. In the rivers a pilot came aboard and I was also on the bridge at times through the St. Clair and Detroit Rivers, as well as the Welland

Canal, and, again, I found nothing to complain about with reference to the navigation of the vessel.

It is, therefore, my considered opinion, after many years of navigating vessels on the Great Lakes, that a foreign officer who has had some experience on the lakes, is able to speak English so as to be understood over the ship-to-shore telephone, knows the rules of the road of the Great Lakes and the safety courses is fit to be designated as a qualified officer. Again, if the foreign officer cannot meet these qualifications, then certainly the vessel should be required to take on a certificated pilot for unrestricted waters, as required under the proposed bill.

I also might say, in conclusion, that I am a former past president of the International Ship Masters Association, and for the past several years have discussed the problem of pilotage and safety on the Great Lakes with many other shipmasters, and it is my conclusion, based on both my experience and my talks with other properly qualified persons, that the bill now before you is a good bill, and I recommend its passage.

STATEMENT OF WILLIAM BRICEN MILLER, IN SUPPORT OF S. 3019

I am William Bricen Miller, partner in the Chicago law firm of Lord, Bissell & Brook. I am appearing here today on behalf of the Chicago Association of Commerce and Industry in my capacity as chairman of the harbors and waterways committee. A substantial number of the business organizations of Chicago belong to our association, many of them are engaged in oversea maritime commerce. In addition, I am appearing on behalf of the International Trade Club of Chicago, an organization of more than 700 individuals and business concerns engaged in many aspects of foreign trade and commerce. Both of these organizations favor the passage of Senate bill S. 3019.

During the past 4 years at least $30 million has been expended to improve and create dock facilities in the port of Chicago. In addition, considerable sums of money have been expended to augment facilities necessary for efficient operation of the port's activity. These expenditures have been made in the expectation of growth of our foreign commerce and oversea trade. Hence, we are naturally concerned with any problem which might affect the anticipated growth of this commerce.

For many years oceangoing vessels traversing the old St. Lawrence River system and the lakes have shared these waters with American and Canadian vessels and have accommodated themselves to the conditions that have prevailed. We are cognizant that increased volume of shipping as a consequence of the opening of the seaway creates new problems that must be resolved; pilotage is one of these problems.

The organizations for which I speak are concerned that in assuring safety of operations, unnecessary cost be avoided. If the seaway is to pay for itself, as is now contemplated, and is to fulfill the potential expected of it, the service it provides must be kept attractive to shippers and receivers of cargo. Any unnecessary cost reflects itself in shipping rates that will serve to reduce the benefits of the seaway to the public. Some of the prior legislation proposed for solving the pilotage problem appeared to us to threaten sharply increased costs with little enhancement of safety.

It is our understanding that the prior proposed legislation would have required that pilots be carried abroad oceangoing vessels in all U.S. waters of the Great Lakes, including open waters where, in our opinion, pilots are not required if the ship's officers are qualified. We are pleased that the bill now proposed would resolve the problem in an adequate but less expensive manner.

Moreover, the bill would allow for adjustment and revision in pilotage requirements for changes in conditions such as the increase in numbers of vessels and shifts in traffic patterns as our maritime commerce develops. We believe such flexibility is essential.

The uncertainty engendered by the prolonged failure to resolve the pilotage problem has undoubtedly hindered the development of oversea trade. The viewpoints of interested groups have seemingly been carefully considered, and their recommendations are reflected by this proposed legislation. We therefore urge the prompt enactment of S. 3019.

Senator LAUSCHE. We will resume hearings at 2:30 tomorrow afternoon. If there are any who want to appear at that time, you may do so. If you want to send in your statement, it will be included in the record.

(Thereupon, at 4:08 p.m., the subcommittee was adjourned, to reconvene at 2:30 p.m., Wednesday, February 24, 1960.)