Mr. THOMAS. Sir, a contract has just been signed. My recollection is it will be around the first of the year before we will have a recommendation from the contractor and it will be in the middle of the winter or early spring before we will come to a conclusion on it. This has to do with the questions as to whether or not we admit jets, what categories of jets, and the improvements that would be necessary to do so.

Senator CANNON. When you say the improvement, you mean whether or not you would have to rearrange your facilities over there, lengthen your runways, and so forth?

Mr. THOMAS. For example, one could visualize that if you put in a parallel runway for general aviation, shorten the present one and perhaps lengthen runway 36 to 8,000 or 8,500 feet, it might be necessary that this would require rearrangement of terminal facilities, because we are, as you know, out of terminal facilities there now. That would be an outside one.

Another consideration would be to do nothing and maybe just let small jets in or not let them in at all. These are matters that are being considered over there.

Senator CANNON. Thank you, Mr. Chairman.

Mr. MONRONEY. Do you have anything to do with the Dulles Airport operation as Deputy Administrator?

Mr. THOMAS. I will as Deputy Administrator. I do not now, sir. Senator CANNON. Is there any hope of bringing that traffic up? Is it growing now?

Mr. THOMAS. It is growing. It is not growing as fast as we would like. It seems to get swallowed out there. If you compare it with other locations, I believe it is about the 40th busiest. It does not seem so because it is so large. But traffic is gradually increasing out there.

Senator CANNON. So far as you are concerned, you favor joint use of our larger airports with civilian aircraft, private line aircraft, where they are properly equipped to come into these traffic patterns, do you not?

Mr. THOMAS. Yes, sir; this is not only our policy, but as you know, sir, it is part of the law.

Senator CANNON. But you know of no one advocating taking that right away?

Mr. THOMAS. No, sir, the only advocacy we have is the use of the $7 million in funds for the provision of feeder airports to relieve congestion, but not to keep them away.

Senator MONRONEY. I see.

We thank you very much, Mr. Thomas. We have a rollcall coming rather shortly, so the committee will stand in recess subject to the call of the Chair.

The hearings are closed.

Whereupon, at 12:50 p.m., the hearing was concluded.

BOYD, DAY, HARLLEE, MCKEE, MURPHY, AND THOMAS

The committee met, pursuant to notice, at 11:30 a.m., in room 5110, New Senate Office Building, Washington, D.C., Hon. Warren G. Magnuson (chairman of the committee) presiding.

The CHAIRMAN. The next nomination is for Chairman of the Maritime Commission, and we have Mr. Harllee's reappointment for a term expiring June 30, 1970.

As the Chair pointed out, due to the passage of the law that came out of this committee, the bill making these appointments 5 years, we had to make a break here, so that Admiral Harllee is appointed for 5 years, and Mr. Day appointed for 4 years, to establish the continuity of the 5-year term.

We have your biographical sketch here, Admiral, which we will put in the record in full.

(The biographical sketch follows:)

BIOGRAPHY OF JOHN HARLLEE, REAR ADMIRAL, U.S. NAVY (RETIRED)

CHAIRMAN

Admiral Harllee was designated Chairman of the Federal Maritime Commission August 26, 1963. He was appointed by President Kennedy to be a member of the Federal Maritime Board and took office August 4, 1961, after confirmation by the Senate. His present term as a member of the Federal Maritime Commission expires June 30, 1965.

From October 16, 1961, to January 2, 1963, Admiral Harllee served as the first Vice Chairman of the New Commission under the rotation system adopted by the Commission for that office.

Admiral Harllee voluntarily retired from the Navy in 1959. He was born in Washington, D.C., on January 2, 1914, the son of Mrs. Ella F. Harllee and the late Brig. Gen. William C. Harllee, U.S. Marine Corps (retired). He was graduated from Western High School, Washington, D.C., in 1930 and from the U.S. Naval Academy in 1934.

On December 7, 1941, Admiral Harllee was stationed at Pearl Harbor and participated in its defense. During World War II he commanded Torpedo Motor Boat Squadron 12. Admiral Harllee and his command were awarded the Presidential Unit Citation for outstanding performance in combat in the Southwest Pacific during 6 months in 1943 and 1944. He also served a year as chief staff officer of the PT organization in the Southwest Pacific, which included 10,000 officers and men, 200 PT boats, 11 supporting ships, and 7 bases. Admiral Harllee was awarded the Silver Star and the Legion of Merit (with Combat V) during World War II.

From 1947 to 1948, he served in the Navy's congressional liaison unit. From 1948 to 1949, he commanded a destroyer (the U.S.S. Dyess) which won the annual divisional competition. From 1949 to 1950, he attended the senior course of the Naval War College.

During the Korean conflict, Admiral Harllee was executive officer of the cruiser Manchester, during which tour of duty he received the Commendation Ribbon for conduct in action. He has various campaign and service medals, including 10 battle stars.

From 1955 to 1956, he commanded Destroyer Division 152, including a month's tour as commander of the surface ships on the Formosa patrol. From 1956 to 1957, he was chief of staff of destroyer flotilla three. From 1957 to 1958, the amphibious attack cargo ship he commanded (The U.S.S. Rankin) won more awards than any other ship in peace time. This resulted in his authorship of the lead article in the September 1959 issue of the Naval Institute, entitled "Practical Leadership Aboard Ship." All Hands magazine in January 1959 ran a special report on the U.S.S. Rankin and its captain, John Harllee. The article was entitled "Is There a Formula for a Smart Ship?" It sought to find out why one ship could win that many awards. It also pointed out that any ship that John Harllee commanded turned into a winner of awards.

An expert on PT boat warfare, Admiral Harllee authorized a featured article "Patrol Guerrilla Motor Boats" in the April 1964 issue of the U.S. Naval Institute Proceedings.

In 1959, Admiral Harllee joined the Ampex Corp. in Redwood City, Calif. In July of 1960, Ampex granted him a leave of absence to devote full time to the presidential campaign of John F. Kennedy and Lyndon B. Johnson.. He became chairman of the Citizens for Kennedy and Johnson of northern California. After the election he resigned from Ampex and accepted a position as vice president of E. I. Farley & Co., an investment management firm in New York City. On March 1, 1961, he resigned to become a consultant to the Under Secretary of Commerce for Transportation. He was President Kennedy's first appointment to the Federal Maritime Board and was confirmed by the Senate without dissent.

In January 1964, Admiral Harllee was presented with the Man of the Year award by the New York Foreign Freight Forwarders & Brokers Association. In presenting the award, the president of the association said: "In our memory he is the first chairman to sit down with forwarders at their home ports and review in detail the operations of our industry. We are most impressed with this willingness to exchange views. We find it indeed heartening that the chief of an important Federal regulatory agency is willing to seek out the facts of our economic lives and consider our views as to solutions for existing problems. Administrators who are well informed and appreciate the problems of those they regulate offer the best guarantee that our regulatory statutes will be wisely administered."

Admiral Harllee is also the recipient of the Golden Quill Award presented by the Rudder Club of New York.

Admiral Harllee was the original vice president of Peter Tare, Inc., a social organization of World War II PT boat officers and is now a director of that organization. He is a member of the Sons of the Republic of Texas, the Texas State Society, a charter member of the Texas Breakfast Club, a Government member of the governing board, U.S. Power Squadrons, a member of National Cargo Bureau, Inc., and member of the board of trustees of the American Merchant Marine Library Association. He has been elected to the council of trustees of the United Seamen's Service.

His clubs include the Chevy Chase Club, the Army Navy Country Club, the New York Yacht Club, and the Propeller Club of Washington, D.C.

He is married to the former Jo-Beth Carden, of San Francisco. They have one son, John Harllee, Jr., who graduated from Harvard in June of 1963.

The CHAIRMAN. Admiral Harllee, do you have any statement you would like to make?

Admiral HARLLEE. Yes, Mr. Chairman, I would like to make a brief statement.

I have been Chairman of the Federal Maritime Commission for the past 2 years, and before that a Commissioner on the Federal Martime Commission for 2 years. I hope that this committee, on the basis of my record, will see fit to support me.

If confirmed by the Senate, it would be my intention to operate in the future as I have in the past. If it is not too presumptuous of me, I would like to add one other thought, and that is that Vice Chairman James V. Day, although of the opposite political persuasion from myself, has in my view done a superb job as Vice Chairman, and has been an excellent Commissioner. I am certain all of the Commissioners would join me in that statement.

With that, I would be glad to answer any questions the committee may have.

The CHAIRMAN. All right. We will put in the record the names of the Commissioners and their political affiliation and the date of taking office and the date their terms expire.

The CHAIRMAN. Now I have a few questions, Admiral Harllee. Congress, 4 years ago, passed the dual rate law, which placed certain new responsibilities, and I emphasize the word new, on the Federal Maritime Commission. Would you give a report to the committee on the Commission's administration of this new regulatory program?

Admiral HARLLEE. Yes, Mr. Chairman. The Commission has completed all of the rulemaking proceedings required by the act of 1961. Specifically the rules concerning independent action, self-policing, admission and withdrawal from conferences, the handling of shippers' requests and complaints, and the filing of tariffs.

În addition to that, the Commission has completed its work on the dual rate contracts. Out of the 58 original dual rate contracts approved by the Commission there are only 7 conferences which have decided not to use the dual rate contracts as approved by the Federal Maritime Commission.

The CHAIRMAN. Now the Commission has also undertaken a study or an investigation on the difference between inbound and outbound freight rates. What is the status of that study?

Admiral HARLLEE. That study is still going on, Mr. Chairman, but I believe that some considerable benefits have already been realized. There is no question that the great majority of outbound or export freight rates are higher than their corresponding inbound or import freight rates. However, there is in many instances the question of whether there is a proper economic justification for the disparity. In other words, as to whether this particular disparity is illegal, unfair, or unjust.

We have several formal proceedings along different lines, and we have had a number of informal proceedings, resulting from the outbound rates being higher. One of them is in the case of plywood from your State, Mr. Chairman, in which in informal negotiations with the