from New York to San Francisco. In the case now submitted, however, it is evident from your statement that the voyage would not be undertaken at all if it were not desired to reach New York.

He therefore held that that type of transportation was in violation of the coastwise laws and protected such coastwise trade to Americanflag ships.

There is one more opinion, of December 24, 1924, which Mr. Sullivan did refer to, but I believe his statement was not altogether accurate. On December 24, 1924, in connection with the Lamport & Holt case, passengers were transported from Philadelphia to Boston, where they were landed to attend a convention, and then returned to the ship which proceeded to Halifax before returning to New York, Attorney General Stone then said:

From the facts appearing by the documents you have submitted, the trip would not have been considered by the passengers were it not that the organization and its friends would be transported from Philadelphia to Boston and there landed to attend the national convention and to take part in its proceedings. This was the primary object of the voyage. It otherwise would not have been undertaken. The return to Philadelphia by way of foreign ports with limited stops is only incidental to the real object of the transportation.

Fines of $200 were imposed for each passenger. Mr. Sullivan thought all of the fines were remitted. I am not certain, but my recollection of the proceedings in the case is that it was compromised and the Lamport & Holt Line actually paid about $20,000 in fines.

Mr. SULLIVAN. So you and I split only on the matter of fines, do we? Mr. MAYPER. That is correct.

The CHAIRMAN. Do not let us have any argument; we want to get ahead with the hearings.

Mr. O'LEARY. Have you any figures available as to the number of the land personnel necessary to maintain this cruise service?

Mr. MAYPER. No; I am sorry; I have not. I have a general statement of the effect of this bill on business here, that I want to refer to very briefly.

Mr. O'LEARY. It just happens that my district covers the waterfront of the Hudson River.

Mr. MAYPER. As to the effect of this bill on business in the United States, it is obvious that certain economic byproducts are normally created by shipping activity of this type. The lines now in the trans-Atlantic passenger service, all of those I represent here and possibly half a dozen others, are members of the Trans-Atlantic Passenger Conference, for which I am counsel, and I tried to obtain from them figures showing the amount they spend in this country. Now, I cannot break these figures down for the cruises alone; nor do I know what portion is for butter and eggs, or stevedoring charges, or other separate items. But based on the data I obtained, I think it is fair to state that the lines operating regular trans-Atlantic passenger services spend in the United States, both for their transAtlantic and for their various cruise services, somewhere between $100,000,000 and $150,000,000 a year for food, fuel-which is a very important item, as most of the fuel is purchased here salaries, rentals, commissions to agencies, stevedoring, and so forth. In addition

Mr. RAMSPECK. What percentage of their receipts that they get on this side is that?

Mr. MAYPER. I have no idea; I do not know what the respective percentages are.

The CHAIRMAN. Unless you can break that down to show the cruises, it does not seem to me it is very pertinent.

Mr. MAYPER. I will try to do it, but it is difficult.

Mr. RAMSPECK. Will you also furnish for the record the receipts that they took in from Americans?

Mr. MAYPER. I do not know whether I can, but I will see if that is possible. They have all been in the red for the past 4 or 5 years, so I do not know how helpful that is.

Mr. RAMSPECK. I am not talking about the profits; I am talking about the money they took in.

Mr. MAYPER. I see. Again considering the economic aspects of the cruise business, passengers come from various sections of the United States and Canada, and the railroads, the department stores, the retail stores, hotels and other business groups profit considerably from its development. It seems to me that if these cruises on foreignflag ships were, in one way or another, prohibited, a goodly share of this general business activity would be lost entirely. It could not be replaced under present conditions.

In concluding, I want to take the liberty of reading a paragraph from an editorial from the Philadelphia Ledger, and one from the New York Herald Tribune, in 1932, when this bill was originally considered, as they state certain conditions very succintly. The Philadelphia Ledger of March 7, 1932, says this:

NO REAL HELP TO AMERICAN SHIPPING

It may be necessary to enforce the law relating to coastwise trade against the recently popular "cruises to nowhere" by foreign ships

* * *

I might say that under the agreement we are operating under now, we definitely provide that we shall not operate "cruises to nowehere", that no foreign-flag line will operate "cruises to nowehere."

It may be necessary to enforce the law relating to coastwise trade against the recently popular "cruises to nowehre" by foreign ships; but the legislation which has been introduced to this end is of such wide scope that it is more likely to injure the American merchant marine than to aid it. One highly objectionable feature is the proposal to exclude foreign shipping from cruises to nearby ports, presumably Canadian and West Indies. Aside from the fact that the passenger business to these ports has developed beyond the ability of American tonnage to handle, American travelers are certain to resent such a restriction of their liberty to choose whatever ship they may prefer, and thus actually create a sentiment against the vessels it is supposed to favor.

Moreover, there are such things as treaty rights. There is no difference in legality from sending a foreign ship from New York to Havana, than from sending it from New York to Southampton. Five nations-France, Italy, Germany, Norway and Sweden-have already filed protests with the Department of State against such legislation. If it is passed, there will almost certainly be retaliation. It would not in any case help to build up the passenger-carrying American ships sailing from European ports to our own and bringing many foreign as well as American travelers. * * *

The New York Herald Tribune of February 10, 1932, referring to the cruise bill, says:

The second bill as originally drawn would seemingly have made it illegal for any foreign line to participate in the American cruise trade; American ships alone, in other words, were to be permitted to organize cruises-even European or round-the-world cruises-leaving from and returning to American ports. This was indefensible. The bill has been amended to cover only "cruises to nowhere'' and cruises to the West Indies; even so, it is only less indefensible than it was before. The American traveler is simply not going to stand for this sort of restriction upon his freedom of choice; and if American shipping interests try

to make him do so they will end only by bringing into disrepute our whole system of carefully developed aids to the merchant marine and forfeiting the public support which they so much need. This is the real risk which the authors of this

legislation are running. * * *

The lines I represent are now operating their winter West Indies cruises under agreements filed with and approved by the Shipping Board Bureau, under which agreements every precaution is taken to safeguard equitably the various interests involved. They have established and maintain rates that are fairly competitive. They have limited the number of cruises and they have established fair trade practices. Under these conditions, there is no need for legislation that will prove irritating internationally and that, by removing from the American traveling public cruise facilities which they demand, is bound ultimately to work to the detriment rather than to the benefit of the year-around lines themselves.

(The papers filed for the record by Mr. Mayper are as follows:)

WEST INDIES "LONG" CRUISE AGREEMENT

1. Territory.—This agreement embraces passenger traffic booked in the United States and/or Canada for, or in connection with, cruises from United States Atlantic ports to the West Indies, Mexico, Central America, and the northern ports of South America which do not involve a trans-Atlantic voyage north or south.

The West Indies are defined as the Bahamas, Greater and Lesser Antilles, and, for the purpose of this agreement, Bermuda.

2. Season. The West Indies "long" cruise season, for the purpose of this agreement, shall be considered to cover all cruise sailings taking place between January 1 and April 30 of any calendar year, both dates inclusive, and all cruise sailings during December of the prior year whose itineraries include Christmas and/or New Years, subject to the provisions of section 17 hereunder.

3. Definition and duration of a West Indies cruise.—(a) A West Indies cruise is defined as a pleasure voyage calling at one or more ports in territory covered under section 1, excepting a cruise to the two ports of Nassau (the Bahamas) and Habana, or to the port of Nassau (the Bahamas) and any port in Bermuda, or to any single port in the West Indies, as defined in the second paragraph of section 1 above.

(Commentary. It is understood that all of the signatory lines, except the signatory American Flag Line, will not, for the period of this agreement, operate cruises to "nowhere" or transport cargo on any cruise sailings covered by this agreement.)

(b) The duration of a cruise from the scheduled hour of departure from the pier to the scheduled hour of arrival at quarantine, divided by 24, shall constitute the number of full days. The remaining hours, if 12 or more, shall be counted as an additional day, but less than 12 hours shall not be counted.

4. Limitation of sailings.-The total number of cruises, as defined above, to be operated by all of the signatory lines, except the United States Lines, during the 1935-36 season, shall not exceed 46 and shall be apportioned among them as follows:

NOTE. It is understood that the number of cruises to be operated by the United States Lines are not to be limited and are to be in addition to the 46 cruises referred to above.

(Commentary.-(a) The above-detailed apportionment may be modified at any time during the period of this agreement in such manner as the signatory lines

directly concerned in such modification may agree upon. (b) The total number of cruises provided for in this section may be increased at any time by the transfer, in the discretion of a signatory line, of a cruise from the number allotted to such line (and the deduction from such number) under the agreement of the lines signatory hereto on "cruises to Nasau-Habana, or to Nassau-Bermuda, or to any single port in the West Indies" (United States Shipping Board Bureau Conference Agreement No. -); upon such transfer, all of the provisions of this agreement shall be applicable to the cruise.)

5. Classification of ships and formulas for tariff fares (a) Minimum fares.— The minimum cruise fares, exclusive of shore excursions, shall not be lower for any class of accommodation than the agreed fares shown in the following schedule for a 16 days' cruise; for shorter cruises 6 percent shall be deducted for each day less than 16; for longer cruises 5 percent shall be added for each day over 16 days up to and including 20 days, and 22 percent of the 20-day fare shall be added for each day in excess of 20 days. All fares shall be rounded off to the nearest multiple of $2.50, unless the fare is exactly half of $2.50 when it may be rounded off downward:

(Commentary: For a cruise commencing and terminating at Boston (Mass.), but stopping at New York to embark passengers, all adult tariff fares shall be increased by $12.50 for passengers embarking at Boston.)

(b) Minimum and above minimum fares.-The signatory lines shall file with the secretary of the Trans-Atlantic Passenger Conference the names of all vessels to be operated in this traffic, their itineraries, and their proposed fares, for discussion and unanimous agreement.

(c) Arbitration of fares.-If unanimity is not reached on any proposed fares, minimum or above minimum, the matter shall be referred to arbitration in accordance with the procedure provided for under rule D-18-(b)-(2) of the TransAtlantic Passenger Conference with respect to minimum rates.

6. Fares for servants, etc., and children.-Servants, valets, tutors, governesses, chauffeurs and nurses shall be charged the full tariff fare. Children over 1 year of age and under 10 years shall be charged half the ocean cruise tariff fare, and infants 1 year of age and under, $20.

7. Maintenance of cruise fares.-(a) All signatory lines shall maintain their agreed minimum and above minimum fares.

(b) Published schedule cruise fares. (1) All full cruise bookings shall be for specific accommodation at published schedule fares with no promise-implied or otherwise of improvement without collection of the schedule fare. No full cruise open bookings shall be effected.

(Commentary: Provision in respect to open bookings does not apply to passengers booked at free or reduced fares.)

(2) All fares quoted shall be for not more than two in a room but when a room is sold to a party of three persons the room fare shall be the two-in-room fare plus one minimum fare.

(3) Where no single room fare is shown in the tariff and it is desired to sell a double room for the exclusive use of one passenger, the fare shall be equal to one and one-half fares.

(4) Two rooms with connecting bath may be sold to a party at the published rate for one room with private bath and for one room at the without-bath rate and all members of the party may have joint use of the bath.

Married couples or other persons traveling together booked in separate rooms may be so booked on one ticket.

(c) Improvements in accommodation after sailing.—If improvement in accommodation is made after sailing, the proportionate amount based on the unexpired portion of the cruise shall be collected, except as provided for under paragraph (d) of this section.

(d) Improvements in accommodation-Force majeure.—The ship's officials shall not be given authority to improve a passenger's accommodation except as provided in paragraph (c) above or in circumstances which may be regarded as force majeure as, for instance, a cabin being rendered untenable by leakage, sickness, or other unforeseen conditions. Such improvements shall be reported to the conference secretary, for promulgation, within 3 weeks after the return of the ship.

(e) Free or reduced fares.-Free or reduced fares may be granted as follows: (1) Agent's and clerk's reductions.-Agents and their responsible clerks, their wives and dependent children under 18 years of age may be booked at a reduction of not more than 50 percent from the minimum ocean cruise fare. Assignment of accommodation, regardless of fare, is left to the discretion of he line. Such reductions shall be tabled with the conference secretary for promulgation, within 2 weeks after the passenger's embarkation. (No reductions shall be allowed on shore excursions.)

(2) Free passages to agents.-No free passages shall be allowed to agents except that an agent who secures by any one cruise 25 adult full cruise fares, or its equivalent, may be granted 1 free cruise passage for himself or his representative who accompanies the party for each unit of 25 adult, or equivalent, full cruise fares; with a limit of not more than 5 free passages for any one agent by any one cruise. No monetary allowance shall be made in lieu of a free ticket. Such free cruise passages shall be tabled, as provided under paragraph (e) (1) of this section. (Commentary.-No other allowances or reductions of any description, other than those authorized in paragraphs 1 and 2 above, are to be allowed to agents or their employees.)

(3) Railroad officers and employees (where such railroads grant reciprocal privileges). Officers and employees of railroads on the North American Continent, including those pensioned by such railroads, and their families, on presentation of request from an executive officer authorized to issue such requests, may be allowed a reduction of 25 percent off one way or full cruise ocean fare for the accommodation occupied.

No subagency commission shall be paid on such reduced fares.

(f) Cruise staff.-(1) The names of all members of the cruise staff and of the entertainers, but not including the members of dance orchestras, shall be reported to the conference secretary, for promulgation, within 2 weeks after the date of sailing.

(2) No subagent or employee of a subagent shall be engaged as a member of the cruise staff or as an entertainer or as a member of the crew, except for the purpose of handling shore excursions at ports of call. Not more than two party organizers shall be engaged as a member of the cruise staff on any one cruise sailing. The name of any subagent engaged to handle such shore excursions shall be reported to the conference secretary, for promulgation, as soon as the arrangements are concluded but in no event later than 4 weeks before the date of sailing.