This, as Mr. Glover has stated, has been a very, very serious problem to us. It is a matter of a great deal of concern to this authority we be allowed to do this.

Mr. ZINCKE. One of the statements indicates, Mr. Howard, that a very substantial portion of the proceeds of the purchase price of these vessels, if they are sold under Canadian registry, would go to Canada by way of taxes.

If they are transferred to American registry, they will still be owned by the Canadian corporation; will they not?

Mr. HOWARD. No, sir. At the time they are eligible to be transferred to American registry, then we can take them into our American account.

Mr. ZINCKE. And at what value will they be taken into the American account?

Mr. HOWARD. The Bureau of the Budget of the State of New York says they will be taken in at $80,000 each. That is what they are carried on our books at.

Mr. ZINCKE. And you will not pay any Canadian taxes on that $80,000?

Mr. HOWARD. We will not.
Mr. ZINCKE. You will not?
Mr. HOWARD. That is my understanding from our attorneys.

Mr. ZINCKE. You will be acquiring it from a Canadian corporation, but you will not be paying any taxes?

Mr. HOWARD. That is right.
Mr. MORTON. One question.

When this original deal was made, when the Ogdensburg Port Authority acquired the ferry, which I assume it did for cash or other considerations, what did it pay for that?

Mr. HOWARD. Sir, they paid something, approximately $800,000 for the assets of this company. The assets of this company consisted of stock, a franchise, and these three ferry boats and 2 acres of land in Canada. The tangible assets were the 2 acres of land and the three ferryboats. This was a deal, as it was so aptly put by one of the gentlemen when the Canadian Government had a gun right at our head, we either did this, or we did not.

Mr. GARMATZ. Thank you very much, Mr. Howard.
Are there any other witnesses?
(No response.)
(Whereupon, the committee proceeded to other business.)







Washington, D.C. The subcommittee met at 10 a.m., in room 219, Cannon House Office Building, Hon. Edward A. Garmatz (chairman of the subcommittee) presiding.

Mr. GARMATZ. We will take up H.R. 5781. (H.R. 5781 and agency reports follow :)

[H.R. 5781, 88th Cong., 1st sess.) A BILL To amend the Act of August 1, 1939, to provide that professional nurses shall be

registered as staff officers in the United States Merchant Marine Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) the first sentence of the Act entitled "An Act to provide for the registry of pursers and surgeons as staff officers on vessels of the United States, and for other purposes, approved August 1, 1939 (46 U.S.C., sec. 242), is amended by striking out the period at the end thereof and inserting in lieu thereof a comma and the following: “(6) professional nurse.".

(b) Section 2 of such Act of August 1, 1939, is amended by adding at the end thereof the following new sentence: "Applicants for registry as professional nurse shall be required to possess a valid license as a registered nurse issued under authority of a State or territory of the United States or the District of Columbia.".


Washington, D.C., May 20, 1963. Hon. HERBERT O. BONNER, Chairman, Committee on Merchant Marine and Fisheries, House of Representatives, Washington, D.C.

DEAR MR CHAIRMAN: This is in reply to your request for the views of this Department with respect to H.R. 5781, a bill to amend the act of August 1, 1939, to provide that professional nurses shall be registered as staff officers in the U.S. merchant marine.

The bill would amend the Pursers and Surgeons Registry Act (46 U.S.C. 242248) to provide for the registration of licensed, professional nurses as staff officers in the U.S. merchant marine. The act at present provides for the registration only of the chief purser, purser, senior assistant purser, junior assistant purser, and surgeon.



We have been informed that the proposed registration of nurses as staff officers has been approved by the Professional Nurses Association. The change that would be made by the bill would reflect the status of professional nurses as recognized presently in the medical profession and various Government services, such as the Departments of Army, Navy, and Air Force. Registered nurses are generally employed on passenger ships and it would seem equitable that they be classed at no less rank than junior pursers.

We have no objection to favorable consideration of the bill.

The Bureau of the Budget has advised that there would be no objection to the submission of this report from the standpoint of the administration's program. Sincerely,

LAWRENCE JONES (For Robert E. Giles).


Washington, May 17, 1963. Hon. HERBERT C. BONNER, Chairman, Committee on Merchant Marine and Fisheries, House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN : Reference is made to the request of your committee for the views and recommendations of this Department on H.R. 5781, to amend the act of August 1, 1939, to provide that professional nurses shall be registered as staff officers in the U.S. merchant marine.

The purpose of this bill is to extend to professional nurses the status of staff officers on vessels of the U.S. merchant marine. This would recognize that they are professional people with a status comparable to that of doctors who presently serve as staff officers.

Enactment of this bill would present no administrative problems for this Department nor would it result in any increase in costs.

The Department has no objection to the enactment of H.R. 5781.

The Department has been advised by the Bureau of the Budget that there is no objection from the standpoint of the administration's program to the submission of this report to your committee. Sincerely yours,

FRED B. SMITH, Acting General Counsel. Mr. GARMATZ. We have witnesses here this morning. First, Miss Julia Thompson, American Nurses Association.



Miss THOMPSON. Miss Connors is ill and I am here to give her statement for her.

My name is Julia C. Thompson, Washington representative of the American Nurses Association, the national organization of registered professional nurses. One of the major purposes of the American Nurses Association is to improve the education of nurses and thus improve the quality of practice. One way in which this goal can be accomplished is through the licensing laws of each State.

Every nurse, upon completing the educational program in a Stateapproved school of nursing must successfully pass a licensing examination to become a registered nurse. The license attests to her compentence to practice nursing in a safe and responsible manner. Professional nurses are licensed in all States and territories of the United States and the District of Columbia.

We welcome this opportunity to appear today to submit a statement in support of H.R. 5781. This bill proposes to amend the Merchant Marine Act of 1939 to provide for the registration of professional

nurses as staff officers in the U.S. merchant marine. We were pleased that this committee reported favorably, and that the House of Representatives passed, a similar bill in the 87th Congress.

Laws governing the merchant marine do not presently contain language that confers officer status on professional nurses. However, in the past, such status was granted under an oral agreement because it was recognized that high standards of professional nursing practice and a high level of health care abroad ship could be best achieved when the nurse functioned as an officer in the framework of the medical division.

When a job reclassification was undertaken by the Coast Guard in 1961, this existing and desirable situation was threatened. Because the law did not specifically grant nurses officer status, nurses were included in the group classified as ordinary seamen, wipers and stewards. This was a concern to the nurses and also the medical officers with whom they work most closely.

In all branches of the armed services of this country, professional nurses are officers. This is in recognition of their preparation and of the amount of responsibility they must assume to insure high standards of care. We believe it only logical that the same recognition should be given professional nurses by the merchant marine since they are directly involved in helping to plan for and carry out the medical care programs essential to the welfare of persons aboard ship.

We understand from our own and from contacts of others with the Coast Guard that it has no objection to legislation that would give professional nurses officer status, and indeed agrees to its justice and desirability. We hope this committee will again give this matter its favorable consideration and that the act of August 1, 1939, will be amended during the 88th Congress to accomplish the proposals in H.R. 5781. Passage of this bill will insure that the practice which had been in effect for a number of years by common agreement will now have the force of law.

Thank you for this opportunity to present our views on this legislation Mr. GARMATZ. Mr. Glenn. Mr. GLENN. Do you know what happened to the bill of last year

in the other body?

Miss THOMPSON. It never came up in the Senate because it was passed so late in the session by the House.

Mr. GOODLING. How many nurses would be involved?

Miss THOMPSON. There are about 75 nurses that would be involved. There are about 32 that are constantly on vessels. They have to have a substitute as they sign on and off the vessels.

In addition to that, there are probably around 300 that retain a reserve status.

Mr. GOODLING. There would be an additional cost involved ?
Mr. GOODLING. Do they not receive a higher pay?

Miss THOMPSON. No. The pay they receive would be what they are entitled to now as officers since they have been classified as officers in the past. There would be no change.

Mr. GARMATZ. I have a letter here from the American Merchant Marine Institute. If there is no objection, I will insert it in the record. It is in favor of H.R. 5781.

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