[No. 26] REPORT OF WAR SHIPPING ADMINISTRATION ON H. R. 1519 (MR. KILDAY), SEVENTY-NINTH CONGRESS Hon. S. O. BLAND, WAR SHIPPING ADMINISTRATION, Washington, D. C., March 27, 1945. Chairman, Committee on Merchant Marine and Fisheries, House of Representatives. DEAR JUDGE BLAND: You have requested the views of the War Shipping Administration with respect to H. R. 5488, Seventy-eighth Congress (H. R. 1519, 79th Cong.), a bill relating to marine insurance in the case of certain employees of the Army Transport Service who suffered death, injury, or other casualty prior to April 23, 1943, as a result of marine risks. The measure apparently has two objectives: (a) To extend benefits of Public Law 17, section 2 (b) to a master, officer, or member of the crew of, or any persons transported on, a vessel operated by the Army Transport Service, and (b) To make the proposed amendment effective as of March 24, 1943, the date Public Law 17 was approved. The objectives of this bill are consistent with the policy which led to the passage of the act of March 24, 1943 (Public Law 17, 78th Cong.). The reasons advanced in support of that statute and particularly of subsection 2 (b) are equally applicable to the proposed legislation in that the War Department hires civilians as masters, officers, and members of the crews of its vessels. My views with regard to Public Law 17 were set forth in a letter to you dated August 31, 1942, which is printed in House Report No. 2572, Seventy-seventh Congress, commencing on page 28. The same letter was also sent to the chairman of the Committee on Commerce, United States Senate, and was set forth at length on pages 16 to 19 in Senate Report No. 1813, Seventy-seventh Congress. Subsection 2 (a) of Públic Law 17 broadened the authority of the Maritime Commission under section 222, subsections (d), (e), and (f) to provide full protection to seamen for both war and marine risks engendered by the war. Such protection pertains to loss of personal effects, or loss of life or personal injury or detention, or statutory or contractual obligations or liabilities of vessels or the owners or charterers thereof such as bonuses, wages, or repatriation. In subsection 2 (b) of that act, the Administrator, War Shipping Administration, is authorized to provide such insurance coverage for seamen suffering such a casualty between October 1, 1941, and April 23, 1943, whenever he finds such action is required to achieve equitable results for a loss or injury not otherwise adequately provided for. The authority to extend retroactive coverage was limited, however, to "a master, officer, or member of the crew of, or any persons transported on, a vessel owned by or chartered to the Maritime Commission or War Shipping Administration or operated by, or for the account of, or at the direction or under the control of the Commission or the Administration." We are informed that the Army Transport Service is no longer in existence. That being so, it seems appropriate that "War Department" be substituted for "Army Transport Service" in the title and on page 2, line 7, of the bill. Therefore, in discussing the bill, reference is made to the War Department rather than to the Army Transport Service. The effect of this bill is to provide the above coverage to a master, officer, or member of the crew of or any persons transported on a vessel operated by the War Department. This, it is observed, narrows the application of the act to vessels "operated by" the War Department as compared with the more extensive relationships specified for Maritime Commission and War Shipping Adminis tration vessels. It is understood the War Department is disposed to favor the deletion of the language on page 2, line 7, "or operated by the Army Transport Service" and substitute therefor "or civilian crew members on vessels operated by the War Department." This would exclude masters, officers, or persons transported on War Department vessles. It may be deemed desirable to cover vessels that have been chartered to the War Department from time to time. This may be accomplished by inserting after the word "or" on page 2, line 7, of the bill, "a vessel, by whosoever owned" or by changing the language favored by the War Department to "or civilian crew members on vessels, by whomsoever owned, operated by the War Department." Attention is called to the fact that section 1 of Public Law 449 (approved September 30, 1943), amended subsection 2 (b) of Public Law 17 by inserting after the first sentence thereof the following sentence: "There shall be no recovery of any money paid on account of insurance provided for the master, officers, or members of the crew of, or individuals transported on, any vessel under this subsection or under subtitle-Insurance of title II of the Merchant Marine Act, 1936, as amended, from any person who in the judgment of the Administrator, War Shipping Administration, is without fault, and when in the judgment of the Administrator such recovery would defeat the purposes of benefits otherwise authorized or would be against equity and good conscience." In that no reason appears for repealing such provision and, in order to prevent its repeal through inadvertence, it is suggested the phrase "as amended" be inserted on page 1, line 6, of the bill preceding the word "is" and that the sentence quoted from Public Law 449 be inserted after the period in line 1, page 3, of the bill. We are unable at this time to estimate the cost to the Government which will result from claims that may be payable under the proposed legislation. The War Shipping Administration provides insurance to the War Department under an indemnity agreement pursuant to section 224 (b), Merchant Marine Act, 1936, as amended. Our interest in the proposed legislation is to control the processing of claims in order to maintain uniformity in the treatment of assureds. In view of the above considerations, the War Shipping Administration considers the proposed legislation to be a desirable though limited extension of the authority to provide insurance for persons who have suffered loss or casualty from war or marine risks engendered by the War. Should the bill be amended in accordance with the suggestions mentioned herein, the War Shipping Administration has no objection to the enactment of the bill, either as introduced or as changed to conform with the recommendations made by the Secretary of War. We are now advised by the Director, Bureau of the Budget, that there would be no objection to the presentation of this report to your committee. Sincerely yours, E. S. LAND, Administrator. [No. 27] REPORT OF THE WAR DEPARTMENT ON H. R. 1519 (H. R. 5488, 78тн Cong.) Hon. SCHUYLER OTIS BLAND, WAR DEPARTMENT, Washington, March 30, 1945. Chairman, Committee on the Merchant Marine and Fisheries, House of Representatives, Washington, D. C. DEAR MR. BLAND: The War Department favors the enactment of H. R. 5488, Seventy-eighth Congress, a bill which would extend to certain employees of the Army Transport Service the benefits extended to crew members of vessels owned by or chartered to the Maritime Commission or the War Shipping Administration by section 2 (b) of the act of March 24, 1943 (Public Law 17, 78th Cong.). Under existing law, benefits have been available to civilian crew members of vessels operated by the War Department since April 23, 1943. The proposed amendment as contained in H. R. 5488 would extend these benefits retroactively to October 1, 1941, thus placing these employees of the War Department on the same footing with other groups similarly situated. The Department has been unable to secure equitable action on claims resulting from death, injury, or other casualty occurring during the period from October 1, 1941, to April 23, 1943, because of the absence of statutory authority for honoring such claims. It is the Department's view that authority should exist for equal treatment to individuals who have faced the same risks. In the interest of clarity, it is recommended that slight revisions be made in the title and text of the bill. The Army Transport Service, as such, no longer exists, its equipment and its functions having been transferred to the Transportation Corps in 1942. Accordingly, it is suggested that the words "Army Transport Service" in the title of the bill be deleted and that the words "War Department" be substituted in lieu thereof, and that the words, "or operated by the Army Transport Service" in line 7, page 2, of the bill be deleted and that the words "or civilian crew members on vessels operated by the War Department" be substituted therefor. This revision will, it is believed, facilitate administration. It will also permit payment of claims for death or injury to crew members of those vessels operated by the War Department but which may be attached to services other than the Transportation Corps when, in the judgment of the Administrator, War Shipping Administration, such injury or death is covered by the insurance provisions of the Merchant Marine Act, 1936, as amended. It is not possible at this time to indicate the fiscal effect of the bill. In view of the foregoing, it is strongly recommended that the proposed legislation be enacted. The Bureau of the Budget advises that there is no objection to submission of this report. Sincerely yours, HENRY L. STIMSON, Secretary of War. [No. 47] FURTHER REPORTS OF WAR DEPARTMENT ON H. R. 1519 (MR. KILDAY) WAR DEPARTMENT, Washington, July 9, 1945. Hon, SCHUYLER OTIS BLAND, Chairman, Committee on the Merchant Marine and Fisheries, House of Representatives, Washington, D. C. DEAR MR. BLAND: On April 11, 1945, the War Department submitted a report favoring enactment of H. R. 1519, Seventy-ninth Congress, a bill relating to marine insurance in the case of certain employees of the Army Transport Service who suffered death, injury, or other casualty prior to April 23, 1943, as a result of marine risks. Since that report was submitted it has come to the attention of the Department that specific language recommended for inclusion in the bill would have the effect of excluding masters and officers of War Department vessels from the benefits extended. That was not the intent, and the Department desires to amend its report accordingly. In lieu of the language change suggested in the third paragraph of the report submitted April 11, 1945, it is requested that the following be recommended to the committee's attention: The words "Army Transport Service" should be stricken where they appear in the title of the bill and the words "War Department" substituted therefor. In line 4, page 2, insert a comma after the word "Commission" and delete the word "or". In line 5, page 2, after the word “Administration" add a comma and the words "or the War Department". In line 6, page 2, add a comma after the word "Commission", strike out the word "or" which follows and add "or the Department" at the end of the line. In line 7, page 2, strike out the phrase "or operated by the Army Transport Service". The effect of these recommended changes will be the same as that explained in the Department's original report on H. R. 1519. The Bureau of the Budget advises that there is no objection to the submission of this further report. Sincerely yours, Hon. SCHUYLER OTIS BLAND, HENRY L. STIMSON WAR DEPARTMENT, Chairman, Committee on the Merchant Marine and Fisheries, House of Representatives, Washington 3, D. C. DEAR MR. BLAND: The War Department favors the enactment of H. R. 1519, Seventy-ninth Congress, a bill which would extend to certain employees of the Army Transport Service the benefits extended to crew members of vessels owned by or chartered to the Maritime Commission or the War Shipping Administration by section 2 (b) of the act of March 24, 1943 (Public Law 17, 78th Cong.). Under existing law, benefits have been available to civilian crew members of vessels operated by the War Department since April 23, 1943. The proposed amendment as contained in H. R. 1519 would extend these benefits retroactively to October 1, 1941, thus placing these employees of the War Department on the same footing with other groups similarly situated. The Department has been unable to secure equitable action on claims resulting from death, injury, or other casualty occurring during the period from October 1, 1941, to April 23, 1943, because of the absence of statutory authority for honoring such claims. It is the Department's view that authority should exist for equal treatment to individuals who have faced the same risks. In the interest of clarity, it is recommended that a slight revision be made in the language of the bill. The Army Transport Service, as such, no longer exists, its equipment and its functions haveing been transferred to the Transportation Corps in 1942. Accordingly, it is suggested that the words "or operated by the Army Transport Service" in line 7, page 2, of H. R. 1519 be deleted and that the words "or civilian crew members on vessels operated by the War Department" be substituted therefor. This revision will, it is believed, facilitate administration. It will also permit payment of claims for death or injury to crew members of those vessels operated by the War Department but which may be attached to services other than the Transportation Corps when, in the judgment of the Administrator, War Shipping Administration, such injury or death is covered by the insurance provisions of the Merchant Marine Act, 1936, as amended. It is not possible at this time to indicate the fiscal effects of this proposal. In view of the above, it is strongly recommended that action be taken to secure the enactment of H. R. 1519. The Bureau of the Budget advises that there is no objection to submission of this report. Sincerely yours, HENRY L. STIMSON, |