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FLEET BALKES "BY LABOR WA ona KENNEDY CIO-AFL Struggle Hampers Move to Build Up Merchant Marine, He Tells Congress Chairman Joseph P. Ken- Inedy, of the Federal Maritime Commission, charged last night ir his first annual report to Congress that labor disputes Amertean Merehant Marine as nocaluable arm of national de- fopse, in what was regarded as his farewell message before ho for-; imally resigns to become ambassa- idor to (reat Britain. Kennedy for the first time took cognizance of are demoralizing private and. | Bo 4 x at! offieial efforts to expand the the bitter rivalry between the american Federation of Labor and '}Committee for Industrinl Organi- Imation maritime untons, OF BISPiniig Lslstril “|Operatora Hesttant ‘| He said that private operators “were hesitant to build new ships —the most urgent problem before ‘ithe commission—because of the “chaotic labor’ situation. “Labor conditions signalized by deinands of the crews, ‘sitdown jand ‘quickie’ strikes, and oo performance of duties are chatac- tert tic of the industry,” the bl spteking chairman said. He cited refusal of the crew}ot : thy Government-owned S. &. Algic’ to pbhey orders and their resultant | eanviction. ‘No Lasting Cure’ “Although the commSSiOn as I recommended remedial - . tion, no lasting cure wil ! effected until the jurisdictional strife now prevalent in maritime labor is terminated and a more cooperative working arrangement iis reached by unoins and ship joperators,” he said. The report, covering the com- imission’s activities from October 96, 1936. to October 25, 1937, is ‘expected to furnish a new work- iing basis for the Benate Com- ‘merce and* House Merchant Marine Committees, which are _ ; studying aber, financial and Pe other maritime troubles prepara- oe “phe tory to drafting new legislation. | ry Fennedy said he believed that a' satisfactory basis for a long- range construction program has! been laid—if there are no unfore-: seen developments—that will re- place obsolete American ships. : improve service. and strengthen ! the national defense. 53 Ships Planned He said that eight steamship lines under long-term subsidy agreements would build 53 or 64 new ships cosling $110,000,000 dur- ing the next five years, while the Standard Of! Company of New Jersey, will undertake 12 high- speed tankers equipped for war usage. He emphasized that the future| shipbuilding program will em- brace greater speed, improved fire- proofing and safety devices, better quarters for crews and officers, and national defense facilities. The report pointed out that a we fe of ship tonnage road and sxy-rocketing scrap-iron prigcs had gccelerated transfer of er- ican Jownershins to foreign! regis- try, fausing the commission*to re- double its vigilance to prevent a detrimental effect upon the mer- chant Marine. : On) So