542246 CONTENTS Statements of- Radner, William, for Admiral Land, War Shipping Administration.......... Bigge, George E., Federal Security Agency - McCauley, William, Employees' Compensation Commission.. Page 12 18 18 23 25 26 28 30 Hogan, Samuel J., Marine Engineers' Beneficial Association__ Pacific American Steamship Association and Shipowners' Association The Attorney General of the United States regarding trials by jury... 76923-42-2 MERCHANT MARINE OMNIBUS BILL HOUSE OF REPRESENTATIVES, COMMITTEE ON MERCHANT MARINE AND FISHERIES, Wednesday, September 2, 1942. The committee met at 10 a. m., Hon. Schuyler Otis Bland (chairman) presiding. The CHAIRMAN. The committee will come to order. We have met this morning for the consideration of H. R. 7424. All the reports on the bill which have been received up to this time have been printed and are contained in Document No. 113, copies of which are available to those in attendance, (H. R. 7424 and reports follow :) [H. R. 7424, 77th Cong., 2d sess.] A BILL To amend and clarify certain provisions of law relating to functions of the War Shipping Administration, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled That all seamen employed by or on behalf of the United States through the War Shipping Administration, or agents or other persons acting for or on behalf of the War Shipping Administration, shall, with respect to (1) death, injuries, illness, loss of effects, detention, or repatriation, or claims arising therefrom; (2) the Federal social security laws and Federal employment tax laws; and (3) allotments, have all of the rights, benefits, exemptions, privileges, and liabilities of seamen employed on privately owned and operated American vessels. Such seamen shall not be entitled to any benefits nor be subject to any charges provided for Federal employees under the United States Employees Compensation Act, as amended, or the Civil Service Retirement Act as amended. Any claim referred to in clause (1) hereof shall, if administratively disallowed in whole or in part, be enforced pursuant to the provisions of the Suits in Admiralty Act, notwithstanding the vessel on which the seaman is employed is not a merchant vessel within the meaning of such Act. The War Shipping Administration, with respect to seamen employed by it or on its behalf, is hereby authorized to make payments by way of contributions, and to make deductions from wages of such seamen, as if an employer under the Federal social security laws and Federal employment tax laws. The War Shipping Administration and its agents or persons acting on its behalf or for its account may, for convenience of administration, with the approval of the Administrator, make payments of any taxes, fees, charges, or exactions to the United States or its agencies. SEC. 2. Section 222 (f) of Subtitle-Insurance of title II of the Merchant Marine Act, 1936, as amended (Public Law 523, Seventy-seventh Congress) is amended by inserting before the period at the end thereof a semicolon and the following: "and, whenever the Commission shall insure any risks included under subsection (d) or (e) of this section, or under this subsection insofar as it concerns liabilities relating to the master, officers, and crews of such vessels or to other persons transported thereon, the insurance on such risks may include marine risks to the extent that the Commission determines to be necessary or advisable". SEC. 3. (a) The second proviso of section 1 of the Act of June 6, 1941 (Public Law 101, Seventy-seventh Congress), as amended, is hereby amended to read 1 as follows: "Provided further, That such compensation hereunder, or advances on account thereof, shall be deposited with the Treasurer of the United States, and the fund so deposited shall be available for the payment of such compensation, and shall be subject to be applied to the payment of the amount of any valid claim by way of mortgage or maritime lien or attachment lien upon such vessel, or of any stipulation therefor in a court of the United States, or of any State, subsisting at the time of such requisition or taking of title or possession; the holder of any such claim may commence prior to January 1, 1943, or within six months after the first such deposit with the Treasurer and publication of notice thereof in the Federal Register, whichever date is later, and maintain in the United States district court from whose custody such vessel has been or may be taken or in whose territorial jurisdiction the vessel was lying at the time of requisition or taking of title or possession, a suit in admiralty according to the principles of libels in rem against the fund, which shall proceed and be heard and determined according to the principles of law and to the rules of practice obtaining in like cases between private parties, and any decree in said suit shall be paid out of the first and all subsequent deposits of compensation; and such suit shall be commenced in the manner provided by section 2 of the Suits in Admiralty Act and service of process shall be made in the manner therein provided by service upon the United States attorney and by mailing by registered mail to the Attorney General and the United States Maritime Commission and due notice shall under order of the court be given to all interested persons, and any decree shall be subject to appeal and revision as now provided in other cases of admiralty and maritime jurisdiction". (b) The last sentence of section 223 of Subtitle-Insurance of title II of the Merchant Marine Act, 1936, as amended (Public Law 523, Seventy-seventh Congress), is amended by striking out the clause in parentheses, and by inserting before the period at the end of such sentence a comma and the following: "but in no case shall such allowance to the carrier provide for payment by the carrier of commissions in excess of 5 per centum of the premiums paid for that portion of the direct insurance so reinsured". (c) Section 224 (a) of Subtitle-Insurance of title II of the Merchant Marine Act, 1936, as amended (Public Law 523, Seventy-seventh Congress), is amended by inserting after the word "subtitle" and before the comma following such word the words "or in section 10 of the Merchant Marine Act, 1920, as amended". (d) The clause in parentheses in the first sentence of section 3 (b) of the Act of June 6, 1941, as amended (Public Law 101, Seventy-seventh Congress), is amended to read as follows: “(including any interest or liability of the owner, charterer, or agent)". (e) The second sentence of section 4 of such Act of June 6, 1941, is amended by inserting after the words "national defense" and before the semicolon a comma and the following: "and when so chartered or operated may be insured as provided in said section 3". SEC. 4. The United States shall, with respect to vessels chartered to the War Shipping Administrator under bareboat charter or time charter or operated directly by such Administrator or for his account, be entitled to the benefits of all exemptions and of all limitations of liability accorded by law to the owners of vessels. With respect to any such vessel, the term "The United States" shall include agents or other persons acting for or on behalf of the Administrator in connection with the operation thereof. SEC. 5. The provisions of section 1 of this Act shall take effect on the date of enactment hereof, but payments and deductions under the Federal social security laws and Federal employment tax laws of the nature authorized by said section 1 made prior to such date are hereby ratified and confirmed. The provisions of such section 1 shall remain in force until the termination of title 1 of the First War Powers Act, 1941. The termination of the provisions of such section shall not affect any act done or any right accruing or accrued, or any suit or proceeding had or commenced in any cause before such termination, but all rights and liabilities under law as modified by such provisions shall continue, and may be enforced in the same manner as if such provisions had not terminated. OFFICE OF THE ATTORNEY GENERAL, Hon. SCHUYLER O. BLAND, Chairman, Committee on the Merchant Marine and Fisheries, House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: This acknowledges your letter of July 24, 1942, requesting my views relative to a bill (H. R. 7424) to amend and clarify certain provisions of law relating to functions of the War Shipping Administration, and for other purposes. Section 1 of the bill would make applicable to seamen employed by or on behalf of the War Shipping Administration, all the rights, benefits, and immunities that they would have if they were employed on privately owned vessels. It would also expressly provide that such seamen shall not be entitled to any of the benefits or be subject to any of the charges provided for employees of the United States. Section 2 would amend the law relating to marine insurance in time of war so as to permit the War Shipping Administration to furnish protection to seamen which would include all marine risks which seamen might encounter in wartime; for example, injuries sustained in collisions in convoy due to black-out conditions. Section 3 (a) would authorize the War Shipping Administration, prior to making a definite determination of just compensation, to make a deposit with the Treasurer of the United States on account of such just compensation for foreign merchant vessels which it requisitioned. Under existing law (act of April 1, 1942, Public Law No. 523, sec. 223) the amount of commissions and expenses which may be allowed by the War Shipping Administration to an insurance carrier for commissions and expenses on reinsurance is restricted to a fixed percentage of the premiums. Section 3 (b) of the bill under consideration would remove this restriction so far as expenses are concerned. Section 3 (c) of the measure would authorize any department or agency of the United States to procure insurance against marine risks on hulls in which the United States has a legal or equitable interest. Sections 3 (d) and (e) would merely clarify certain ambiguities in existing law relating to the insurance of the interest of a general agent for a vessel and the insurance of certain classes of vessels acquired by the War Shipping Administration. Section 4 would accord to the United States in respect to all vessels under the control of the War Shipping Administration, the same rights to limit liability and to receive benefits as is accorded to owners of private vessels. Section 5 would provide that section 1 of the bill shall remain in force until 6 months after the termination of the war or until such earlier date as the Congress by concurrent resolution or the President by proclamation may designate. I find no objection to the enactment of the bill. FRANCIS BIDDLE, Hon. S. O. BLAND, FEDERAL SECURITY AGENCY, Chairman, Committee on the Merchant Marine and Fisheries, House of Representatives, Washington, D. C. MY DEAR MR. CHAIRMAN: This is in reply to your letter of July 24, 1942, requesting a report from this Agency to your committee on H. R. 7424, a bill to amend and clarify certain provisions of law relating to functions of the War Shipping Administration, and for other purposes. This Agency is directly interested only in section 1 of H. R. 7424, which is intended to clarify the status of seamen employed by the War Shipping Administration with respect to their rights and benefits, and to preserve to seamen who, by reason of their employment by the War Shipping Administration, might become employees of the United States, those rights and benefits to which they would be entitled if they were employed on privately owned and operated vessels. This Agency is in complete agreement with this objective. It is currently carrying on three major programs which are of direct benefit to merchant seamen: |