STATEMENT OF EDWARD A. KELLY

Mr. KELLY. Mr. Chairman, I am the vice president of the Fleet Corporation in charge of operations. I knew nothing about this hearing until yesterday afternoon. Our interests, of course, are solely in the adequacy of this docking facility. I telegraphed yesterday afternoon to our district director at New Orleans to get the details of the docks available, the available docking facilities there, and his reply came in this morning stating that there was one dock of 10,000 tons capacity, another of eight and three of less capacity. The Shipping Board has now in active service out of New Orleans about 85 vessels, operated by about six or seven different managing operators, going to all parts of the world. We do not feel that a single dock of 10,000 tons capacity is adequate for the services that operate out of New Orleans, and I should say that perhaps the Shipping Board now operates about 45 or 50 per cent of the total vessel services operated out of New Orleans. In the event, as has happened and will happen, that the dock of maximum capacity of 10,000 tons is occupied by a ship, and an accident should happen to another ship, that other ship would have to go to some other port, if she could be towed there or brought there safely, or else lay up until the largest dock was vacated. That briefly gives our view of the situation.

The CHAIRMAN. It is entirely impossible to use the present dock while being operated by the Navy Department?

Mr. KELLY. No. I think on one or two occasions we have used the Navy dock, but that brought about all sorts of complaints from commercial bodies.

Senator COPELAND. Because you were using a Government dock? Mr. KELLY. In competition with privately owned property; yes. The CHAIRMAN. But the facilities are there to take care of the situation.

Mr. KELLY. In the event of an emergency; yes.

The CHAIRMAN. So that the dock could be used in the event of an emergency?

Mr. KELLY. Yes; and considering the opposition from private interests, the emergency would be the only way that we could use it.

Senator COPELAND. So far as the Shipping Board is concerned it is interested in having facilities there, regardless of who may have charge of them.

Mr. KELLY. Yes.

Senator STEIWER. Do you know whether those ships are ever docked and repaired at the other end of the run?

Mr. KELLY. You mean in foreign ports?

Senator STEIWER. Yes; when an emergency occurs.

Mr. KELLY. Yes.

Senator STEIWER. Was that ever affected by inadequate facilities at home?

Mr. KELLY. Not at all. It was due solely to an emergency because it is our intention, and we have instructions to that effect, to use domestic facilities wherever we can.

Senator STEIWER. That is right, as good American business.
Mr. KELLY. Yes.

Senator STEIWER. To use domestic facilities wherever possible.
Mr. KELLY. Yes.

Senator STEIWER. And by the same token those vessels should be admitted, else your policy would work a hardship on the operator. Mr. KELLY. Not on the operator, because the Shipping Board and the Government pays the expense.

Senator STEIWER. But the operator is out the use of his vessel if it is held in court.

Mr. KELLY. The Shipping Board would have to compensate that. Senator STEIWER. The loss would fall on the Government of the United States?

Mr. KELLY. Yes.

Senator SWANSON. Could the Shipping Board operate this?

Mr. KELLY. I think so.

Senator SWANSON. Fairly, and give equal opportunity?

Mr. KELLY. Except, of course, you have the principle there of competing with private business.

Senator SWANSON. You would have that if you leased it.

Mr. KELLY. That would exist if we leased it.

Senator SWANSON. It would be Government property.

Mr. KELLY. Personally, I would strongly oppose the Shipping Board operating it.

The CHAIRMAN. The Shipping Board does not operate any docks now?

Mr. KELLY. NO. We would be involved in all sorts of complaints and difficulties.

Senator SWANSON. You think it would be better for the Shipping Board not to operate?

Mr. KELLY. Yes.

Senator SWANSON. How do the docking facilities at Norfolk compare with those of New Orleans?

Mr. KELLY. They are considerably in excess of what they are at New Orleans.

Senator SWANSON. How many operations has the Shipping Board going out from Norfolk?

Mr. KELLY. I should say about seven or eight.

Senator SWANSON. You have no direct operations. They simply stop by there?

Mr. KELLY. It is a by-port.

Senator SWANSON. How many direct operations have you from New Orleans?

M.r KELLY. We have either five or six.

Senator SWANSON. Is the Shipping Board contemplating having any operation out from Norfolk, which is the largest port on the Atlantic, next to New York?

Mr. KELLY. That is a matter that the Shipping Board is considering.

Senator SWANSON. They have been considering it for years. You do not know when the consideration will reach a conclusion? Mr. KELLY. I would rather not answer that.

Senator SWANSON. But they have adequate docking facilities at Norfolk?

Mr. KELLY. Yes.

Senator SWANSON. And no trouble like this would arise at Norfolk?

Mr. KELLY, No.

Senator RANSDELL. What docking facilities are there at the other first-class ports of the country, starting at Boston and coming down?

Mr. KELLY. I could not give you the facilities in detail, except I can say this, that they are largely in excess of the facilities that New Orleans offers.

Senator RANSDELL. At all the great ports of the United States? Mr. KELLY. Yes.

The CHAIRMAN. If you would like to have that, that could be made up and put into the record.

Senator RANSDELL. Yes: I would.

The CHAIRMAN. Will you get that for us?