oversight

The Federal Role in Merchant Marine Officer Education

Published by the Government Accountability Office on 1977-06-15.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                         DOCUMENT   ESUME

02444 - [A1752787
The Federal Role in Merchant Marine Officer ducation.
FPCD-77--44; B-159219. June 15, 1977. Released June 16, 1977. 25
pp.    10 appendices (20 pp.).

Report to Rep. John . Murphy, Chairman, Rouse Committee on
Merchant Marine and Fisheries; Sen. arren G. Magnuson, Chairman
, Senate Committee on Commerce, Science, and Transportation; by
Elmer B. Staats, Comptroller General.
Issue Area: Military Preparedness Plans (800); [uilitary
     Preparedness Plans: Military Communications and Information
     Processing Needs (803).
Contact: Federal Personnel and Compensation Div.
Budget Function: Education, Manpower, and Social Services:
     Elementary, Secondary, and Vocational Education (50T)'
     Education, Manpower, and Social Services: Higher Education
     (502).
organization Concerned: Department of Commerce; Department of
    Defense-: Department of Transportation.
Congrr:ssional Relevance: House Committee on Merchant Marine and
     Fisheries; Senate Committee on Commerce, Science, and
     Transportaticn.
Authority: Merchant Marine Act of 1936 (46 U.S.C. 224; 46 U.S.C.
     1101). Maritime Academy Act of 1958.

         To determine whether the expenditure of additional
Federal funds for the education of deck and engineering officers
was justified, a review was made of the employment placement
records of Federal and various State maritime academies.
Findings/Conclusions: In fiscal year i9 76 , $8.7 millIon was
spent by the Government to operate the Merchant Marine Academy
at Kings Point, N.Y., and about $4.7 went to support six State
academies. Federal involvement in merchant marine oficer
education is justified if graduates of the academies are needed
and find employment as licensed officers in the merchant marine.
Because of the Maritime Administration'& (ARAD) broad
definition of "merchant marine" and in the absence of placement
goals for graduates in each segment of the merchant marine, the
extent that job placement in the merchant marine justified
Federal support of the academies could not be determined. Naval
science training is supposed to yield --rchant marine officers
capable of operating with the Navy if necessary. Thus, there
does not appear to be a need for commissioning academies'
graduates to the Reserve since service in the Navy is not the
primary intent. Also, Reserve criteria restrict the number of
these officers who can be trained. There is a need for an
alternate program for naval science training for merchant marine
officers. Recommendations: MARAD should establish employment
placement goals for the academies, and establish the minimum
number of years that graduates should serve as ships' officers.
Departments of Commerce and Defense should jointly begin a
program to provide the minimum naval science training required
by all merchant arine officers, and see that all officers
receive such training. (Author/DJl)
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REPORT OF THE
COMPTROLLER GENERAL
OF THE UNITED STATES



The Federal Role In
Merchant Marine
Officer Education
Departments of Commerce,
Defense, and Transportation

Graduates of the Federal arid State maritime
academies should serve as licensed officers in
the merchant marine to justify Federal in-
volverrent in merchant marine officer edu-
cation.
The Maritime Admini-ration needs to es-
tablish goals for placer,lent of graduates in the
various sectors of the merchant marine to
measure the degree that Federal involvement
isjustified.
GAO recommends that the Departments of
Commerce and Defense
     --deverop a joint program to provide the
       minimum naval science training re-
       quired by all merchant marine officers
       and
     --see that all officers receive such train-
       ing.



FPCD-n44                                                       JUNE 15, 1977
             c.MPROER GENEsRAL or THE UNITED STATS
                     WAMINOTON D.C.




B-159219




The Honorable Warren G. Magnuson, Chairman
Senate Committee on Commerce,
  Science and Transportation
The Honorable John M. Murphy, Chairman
House Committee on Merchant
  Marine and Fisheries
     This report, prepared in response to March 9 and 11,
1976, committee requests, discusses (1) employment oppor-
tunities for graduates of Federal and State maritime aca-
demies as licensed deck and engineering officers in the
U.S. merchant marine, (2) administration of the academies'
programs by the Maritime Administration, and (3) adminis-
tration of the merchant marine officers' Navy Reserve pro-
gram by the Department of the Nvy.

     We recommend that (1) the Maritime Administration es-
tablish employment placement goals for the academies,
(2) the Departments of Commerce and Defense jointly develop
and implement a program to provide the minimum naval science
 .raining required by all merchant marine officers, and (3)
 he Departments see that all officers receive such training.
     The report includes information on the Calhoon Marine
Engineer's Beneficial Association Engineering School and
discusses union employment rules.
     This report contains recommendations to the Secretary
of Commerce on pages 12 and 17 and to the Secretary of De-
fense on page 17. As you know, section 236 of the Legisla-
tive Reorganization Act of 1970 requires the head of a ed-
eral agency to submit a written statement on actions taken
on our recommendations to the House Committee on Government
Operations and the Senate Committee on Governmental Affairs
not later than 60 days after the date of the report and to
the House and Senate Committees on Appropriations with the
agency's first request for appropriations made more than 60
days after the date of the report. WR will be in touch with
your office in the near future to arrange for release of the
report so that the requirements of section 236 can be set in
motion.
B-159219


     .We have discussed this report with Maritime Admin'stra-
ticn, Navy, and Coast Guard officials and have incorporated
their comments where appropriate.    c also briefed Mar'ne
Engineer's Beneficial Association officials on pertinent
parts of the report and have incorporated their comments
where appropriate.




                                 ro <er General
                            of the United States




                             2
REPORT OF THE                        THE FEDERAL ROLE IN
COMPTROLLER GENERAL                  MERCHANT MARINE
OF THE UNITED STATES                 OFFICER EDUCATION
                                     Departments of Commerce, Defense,
                                     and Transportation

           DIGEST

           GAO has reviewed the Federal program for
           training deck and engineering officers for
           the U.S. merchant marine, in response to con-
           gzessional requests. (See p. 1.) Specifically,
           GAO reviewed the employment placement records
           of Federal and various State maritime acade-
           mies and gathered available information to
           determine whether expenditure of additional
           Federal funds for the education f deck and
           engineering officers is justified. (See p. 6.)
           Each year new merchant marine officers are
           available from four sources.

           -- The U.S. Merchant Marine Academy.

           -- The six State maritime academies.

           -- The Calhoon Marine Engineers Beneficial
              Association Engineering School.

           -- Seamen who work their way up through the
              ranks through self-study and on-the-job
              training. (See p. 3.)
           In fiscal year 1976 the Government spent
           $8.7 million to operate the U.S. Merchant
           Marine Academy at Kings Point, New York, and
           about $4.7 million to support State academies
           in Maine, Massachusetts, Michigan, Texas,
           California, and New York. There was no Fed-
           eral funding appropriated for the two other
           sources of new officers. (See pp. 3 and 4.)
           The merchant marine consists of merchant
           vessels which operate on inland waters, the
           Great Lakes, and the high seas and the
           crews which operate them. The ships in-
           clude freighters, tankers, tug3s, dredges,
           research vessels, and mining vessels. Deck
           officers navigate and control the ships,
TAr sht. Upon removal, the report
cover date should be noted hereon.
                                       i                   FPCD-77-44
and engineering officers operate the engine
rooms and keep the ships' merchanical and
electrical systems working. (See p. 1 and
2.)
Federal involvement in merchant marine of-
ficer education is justified if graduates
of the academies are needed and find employ-
ment as licensed officers in the merchant
marine. (See p. 6.)

The Maritime Administration has not stab-
lished goals for the academies in terms of
(1) the percentage of each academies' gradu-
ates which should find employment in each
sector of the merchant marine and (2) how
long the graduates should sail. (See p. iC.)
Further, the Maritime Administration has
not performed any extensive, formal evalua-
tion of merchant marine officer education
including the extent that the Federal role
is justified or if there are any alterna-
tives. (See pp. 10 and 11.)

Analysis of the academies' 1975 graduating
classes showed that about 39 percent found
employment as licensed merchant marine of-
ficers on seagoing vessels and 19 percent on
vessels operating in other segments of the
merchant marine, while 8 percent went into
uniformed Government services.  In the ab-
sence of goals, GAO could not determine the
extent that Federal funding of the academies
was justified that year. (See pp. 7 and 10.)

The Navy provides training in Navy procedures
and tactics to students at the Merchant Ma-
rine Academy and five of the six State aca-
demies. Merchant Marine officers need to
know how to coordinate with the Navy and
the full range of naval science training to
qualify for Navy commissions. The Navy's
goal is to have a merchant marine officer
work force composed of as many Naval Reser-
vists as possible.  (See pp. 5 and 13.)
Officers from the Calhoon School and self-
trained seamen do not receive such naval
science training although they represent
about 80 percent of the active deep sea

                      ii
merchant marine officer work force. Presently,
there is no naval science training for them.
They should hang this training because they
will be operating the merchant ships and work-
ing with the Navy in times of peace, national
emerge(ncy, or war. (See p. 13.)
The Secretary of Commerce should direct the
Maritime Administration to establish formal
employment placement goals for each of the
academies and for each segment of the mer-
chant marine. The goals should be in the
form of percentages of the graduating class
which should find employment in each seg-
ment of 'he merchant marine. (See p. 12.)

The Secretaries of Commerce and Defense
should direct the Navy and the Maritime
Administration to (1) jointly develop a
program for providing the minimum naval
science training required by all merchant
marine officers and (2) see that all
officers receive such training. (See p. 17.)

Maritime Administration officials did not
comment on GAO's recommendation on employ-
ment goals. Maritime Administration and
Navy officials agreed with GAO's recommen-
dation that active merchant marine officers
who do not qualify for the Reserve program
should receive naval science training
through other means. (See pp. 12 and 17.)

Problems the maritime academies' graduates
are encountering in obtaining employment on
ships under contract with the Marine En-
gineers Beneficial Association are discussed
in chapter 4. Arguments for and against
charging tuition at the Merchant Marine
Academy are contained in chapter 5. Chap-
ter 6 discusses problems in comparing costs
to train officers at each of the maritime
academies and the Cal'r   School.
Employment statistics   c the maritime
academies, merchant ma. ne officer licens-
ing examination and renewal data, and pro-
files of the various schools appear in ap-
pendixes III through X. (See pp. 28 to 45.)

   SW~~~~~~i
     ~
                   Co    tents
                                                        Page

DIGEST                                                    i

CHAPTER

    1     INTRODUCTION                                    1
              The merchant marine                         1
              Merchant marine officer licensing           2
              Sources of merchant marine offi-
                cers                                      3
              Navy Reserve Program                        5
              Scope of review                             5

    2     NEED FOR EMPLOYMENT PLACEMENT GOALS FOR
            MARITIME ACADEMIES' GRADUATING CLASSES        6
              Job placement                               7
              Composition of merchant marine of-
                ficer work force                          8
              Supply and demand                           9
              MARAD's goals                              10
              Periodic evaluation                        10
              Conclusions                                11
              Recommendations                            12
              Agency comments                            12

    3     NEED FOR IMPROVEMNTS IN PROVIDING NAVAL
            SCIENCE TRAINING TO MERCHANT MARINE
            OFFICERS                                     13
              Most merchant marine officers have
                not been trained in Navy operating
                procedures                               13
              Graduates of the academies                 14
              Navy Acquisition of Academy gradu-
                ates for active dutv                     16
              Conclusions                                17
              Recommendation                             17
              Agency comments                            17

    4     MERCHANT MARINE OFFICER EMPLOYMENT CON-
            TROLLED BY MEBA                              18
              Background                                 18
              Obtaining employment on MEBA-contracted
                ships                                    18

          PROPOSED TUITION FOR MERCHANT MARINE ACAD-
            EMY STUDENTS                                 20
              No obligation to serve in merchant
                marine                                   20
CHAPTER                                                  Page

    5          Payback proposal                           20
               Students' support causes controversies     21
               Proposed tuition at the Academy            21

    6      PROBLEMS COMPARING COSTS OF TRAINING MER-
             CHANT MARINE OFFICERS AT THE VARIOUS
             MARITIME ACADEMIES AND THE CALHOON SCHOOL    23
               Cost to the Governmen.                     23
               Cost to train a merchant marine officer
                 at each maritime academy and the
                 Calhoon School                           23

APPENDIX

    I      Letter of March 9, 1976, from the Chairman,
             House Committee on Merchant Mar.ne and
             Fisheries                                    26

   II      Letter of March 11, 1976, from the
             Chairman, Senate Committee on Commerce       27

  III      Percentage of graduating classes employed
             as merchant marine officers on seagoing
             vessels                                      28

   IV      Employment statistics for 1973 through
             1976 graduates of maritime academies         29

    V      U.S. Merchant Marine Academy history and
             general information                          33

   VI      State Maritime academies' histories and
             general information                          35

  VII      Calhoon School's history and general in-
             formation                                    40

 VIII      Coast.Guard licensing examinations             42

   IX      Enforcement of law requiring officers on
             subsidized merchant ships to be naval
             reservists if eligible                       43

    X      Coast Guard licensing renewal and up-
             grading                                      44
                    ABBREVIATIONS

DOD     Department of Defense

GAO     General Accounting Office

MARAD   Maritime Administration

MEBA    Marine Engineers Beneficial Association
                           CHAPTER 1

                         INTRODUCTION

     We reviewed the Fderal program for training merchant
marine deck and engineering officers, in response to a
March 9, 1976, request from the Chairman, 1/ House Merchant
Marine and Fisheries Committee and a March 11, 1976, request
from the Chairman of the former Senate Commerce Committee.
We were asked to review employment records of graduates of
the Federal and various State maritime academies and gather
all necessary information to determine whether the expenditure
of additional Federal funds on these ndividuals' education
was justified.

     Subsequently, we received requests from other Members
of Congress asking us to look into claims that the Marine En-
gineers Beneficial  Association (MEBA) union discriminates
against graduates  of  the academies and to include the Calhoon
MEBA 2/ Engineering   School, Baltimore, Maryland, in our review.

     The Merchant Marine Act of 1936, as amended, and the
Maritime Academy Act f 195P define Federal involvement in
maritime education in its present form. Under these acts,
the Department of Commerce's Maritime Administration (MARAD)
operates the U.S. Merchant Marine Academy and administers
support to six State maritime academies.
THE MERCHANT MARINE
     The merchant marine essentially comprises all of the
Nation's commercial vessels and the crews which operate
them. The national policy statement cn the need for a
merchant marine (Merchant Marine Act of 1936, U.S.C. title
46, sec. 1101) may be broadly interpreted to include employ-
ment positions ashore as well as afloat. The act states:
     "It is necessary for the national defense and devel-
     opment of its foreign and domestic commerce that the
     United States shall have a merchant marine (a) suf-
     ficient to carry it. domestic water-borne commerce
     and a substantial portion of the water-borne export


1/The Chairman who made the request retired in 1976.

2/MEBA, as used in the report, refers to District No. 1
  Pacific Coast District.


                              1
     and import foreign commerce of the United States and
     to provide shipping service essential for maintaining
     the flow of such domestic and foreign water-borne
     commerce at all times."
     After a legal search, we determined that there was no
precise definition of "merchant marine." Since primary
responsibility for administering the Merchant Marine Act
rests with MARAD and the Coast Guard, they have the respon-
sibility for interpreting and aplying these laws.
     MARAD administers the training of merchant marine
personnel; therefore its definition of merchant marine would
be used for merchant marine officer training purposes. In
a policy statement provided to us, MARAD interpreted the
Merchant Marine Act of 1936 broadly to include all merchant
vessels operating in the deep sea, the Great Lakes fleet,
ocean and coastal towing, offshore mineral and oil explora-
tion, harbors, and inland waterways.
     The merchant marine fleet includes (1) various types
of privately owned seagoing U.S. freighters and tankers, 1/
(2) Government-owned tankers, cargo ships, dredges, research
ships, and tugs, (3) tugs, towboats, freighters, tankers,
and other vessels operating in the harbors, inland waters,
coastal waters, and Great Lakes, and (4) offshore mining and
exploration vessels.
MERCHANT MARINE OFFICER LICENSING

     The Merchant Marine Act of 1936 states that U.S. mer-
chant ships shall be operated by trained and efficient per-
sons. The maritime law (U.S.C. ttle 46, sec. 224) authorizes
the Coast Guard to regulate and administer the licensing of
merchant marine deck ar.d engineering officers. The deck
officers navigate and control the ship and the engineering
officers operate the engine room and keep the ship's mechan-
ical nd electrical systems working.
     To qualify for a deck or engineering officer's license,
a person must be a U.S. citizen; meet the Coast Guard's age,
physical, and sea experience standards; and pass a compre-
hensive written examination. The original licenses are third-
mate and third-asnsistant engineer, and the top licenses are



l/I.cludes oceangoing ships of 1,000 gross tons or over,
  called deep sea, as well as other oceangoing and coastal
  vessels which require licensed merchant marine officers.


                              2
master and chief engineer. The Coast Guard has established
standards and requires written examinations for each licensing
grade. Licenses must be renewed every 5 years and may be
restricted according to degree of experience or specializa-
tion. The Coast Guard does not require any formal education
as a prerequisite to licensing.

SOURCES OF MERCHANT MARINE OFFICERS

     There presently are four sources of new merchant marine
officers--the U.S. Merchant Marine Academy, the six State
maritime academies, the Calhoon School, and the hawsepipe. 1/
The following table shows the enrollment and appropriated
Federal funds for each of these sources, except. for the
hawsepipe which has no Federal funding.

                                          Fiscal year 1976
     Source of merchant                Average       Fed al
      marine officers                 enrollment      fu s

                                                   (millions)
U.S. Merchant Marine Academy           1,052       a/$12.7
'Maine Maritime Academy                  513           1.1
Massachusetts Maritime Academy           768           1.2
Great Lakes Maritime Academy              81            .1
Texas Maritime Academy                    93            .4
Californ a Maritime Academy              331            .7
State University of New York
  MaLitime College                       832           1.2
Calhoon MEBA Engineering School          300           b/0
    Total                              3,970          17.4
a/The $12.7 consists of $8.7 million for normal operating
  costs and about $4 million for the modernization program.
b/Federal funds flow indirectly to the school through con-
  tributions made to the MEBA training fund by federally
  subsidized shipping companies, which is discussed on
  page 41.


1/Hawsepipe is a nautical term used by the maritime industry
  to refer to unlicensed seamen who, through self-study and
  on-the-job training, work their wav ' through the ranks,
  meet the Coast Guard's licensing     aria, and receive
  their original deck or engineering officer's license.


                              3
     The U.S. Merchant Marine Academy at Kings Point, New
York, is operated by MARAD and provides free education, room
and board, medical care, uniform and textbook allowance,
and scme travel expenses. The academy was established in
1938 uder authority granted by the Merchant Marine Act of
1936, as amended.
     The Maritime Academy Act of 1958, as amended, authorizes
MARAD to provide cooperation and assistance to State maritime
academies which train merchant marine officers. Except for
the Great Lakes Maritime Academy, each academy has a federally
owned schoolship for the purpose of providing necessary sea
training for its cadets. MARAD pays for the maintenance ard
repair of these ships. 1/ Each academy receives an annual
operating grant of $75,00, and selected students receive a
$600 annual stipend.  In 1971 and 1972 MARAD established a
ceiling 2/ of 673 new stipends annually for the academies'
freshman classes. Costs for these academies are largely
borne by the States and the students. In fiscal year 1976
the Government spent $4.7 million for support of these State
maritime academies.

     The Calhoon School is sponsored jointly by MEBA and
the contracted steamship companies and receives no direct
funds from the Government. The school provides (1) training
courses to prepare individuals for their original engineering
license and (2) engineering officer licensing upgrading and
continuing education courses for MEBA members. Expenses
incurred by the schools and its students are paid for from
the MEBA training fund. The training fund is replenished
through shipping company contributions determined through
collective bargaining.
     General background information including the history,
funding, curriculums, and accreditation of the Merchant
Marine Academy, the State maritime academies, and the Cal-
hoon School appear in appendixes V, VI, and VII respectively.
     The hawsepipe, another source of merchant marine offi-
cers, involves seamen preparing for licensing on their own
and therefore paying for any instruction they may receive.
A MARAD official said that there are several schools around
the country offering correspondence courses, training, and



l/The training ships range in age from 25 to 37 years.   Cost
  and other data on them appears in app. VI.

2/A discussion on the rationale for establishing this ceil-
  ing appears in app. VI.

                             4
cram course instructions to unlicensed seamen who are pre-
paring themselves for the Coast Guard's written examination.

NAVY RESERVE PROGRAM
     The Navy provides training in naval science at the U.S.
Merchant Marine Academy and the State maritime academies
located in Maine, Massachusetts, New York, California,  and
Texas.  The purpose is to provide the students with the  nec-
essary training to become officers in the U.S. Navy Reserve
and the background required for merchant marine officers.
MARAD requires subsidized students at the schools to apply
for Navy Reserve Commissions at graduation and accept it if
offered. The Navy also operates Navy Reserve Officer Train-
ing Corps units at the Maine and State University of New
York maritime academies.
SCOPE OF REVIEW

     We examined policies, procedures, and practices followed
by MARAD to administer the programs for graduates of the
Merchant Marine Academy and State maritime academies; we also
examined the Navy's administering of Navy Reserve programs for
graduates of the Merchant Marine Academy and five State mari-
time academies. We inspected the physical facilities of the
Merchant Marine Academy, the six State maritime academies,
and the Calhoon School and obtained information on cost, cur-
riculums, enrollment, and history of each school.
     We talked with responsible officials of MARAD, the
Coast Guard, Federal and State maritime academies, the Cal-
hoon School, the Department of the Navy, and MEBA.




                               5
                          CHAPTER 2

           NEED FOR EMPLOYMENT PLACEMENT GOALS FOR

           MARITIME ACADEMIES' GRADUATING CLASSES
     The Merchant Marine Act of 1936 anJ Maritime Academy Act
of 1958 provide that the Government operate the U.S. Merchant
Marine Academy and support State maritime academies for train-
ing merchant marine officers. Therefore, Federal support to
the academies is justified to the extent that the academies'
graduates are needed and find employment as deck or engineering
officers in the merchant marine. MARAD also regards employment
in the maritime industry ashore and in uniformed Government
service as a valuable contribution justifying Federal support.
However, MARAD has not established criteria for indicating what
percentage of the maritime academies' graduates should sail
on their license and for how long to justify Federal support
of the academies.

JOB PLACEMENT 1/

     We analyzed Coast Guard sailing records for the 616
graduates of the maritime academies' 1975 class and found
that 39 percent, or 238, had sailed as licensed merchant
marine officers in seagoing positions in the year after
their graduation. Job placement statistics provided by the
academies indicated that another 19 percent, or 120, had
found employment on vessels in other segments of the merchant
marine. In all, about 58 percent were employed on some type
of merchant vessel.


1/Job placement statistics provided by the Merchant Marine
  Academy and the six State maritime academies for the
  1973 through 1976 graduating classes appear in app. IV.
         Percentage of the 1975 Graduating Class
           Sailing as Merchant Marine Officers

                      Seagoing          Other
                      merchant        shipping      Total
Maritime academy   marine (note a)    (note b)     officers
Texas                    83               -            83
California               29              53            82
Maine                    61               6            67
Massachusetts            55              18            73
Great Lakes (note c)     53               7            60
New York                 34              25            59
Merchant Marine          31              23            54
    Average              39              19           58
a/Includes oceangoing ships of 1,000 gross tons or over
  (deep sea) and other oceangoing and coastal vessels re-
  quiring licensed merchant marine officerc

b/Includes vessels operating on inland waters and the
  Great Lakes and offshore drilling and m   ng vessels.
c/Graduates of the Great Lakes Academy which sailed on the
  Great Lakes.

     Of the remaining 42 percent of the graduates, 13 were
employed in maritime industry ashore, 8 were in nonmaritime
industry, 8 served in uniformed service, and 13 were un-
accounted for or going to graduate school.

     This represents employment for the year after graduation
and not an employment history. To determine the extent that
graduates remain in seagoing jobs as officers 2 years after
graduating, we analyzed Coast Guard sailing records or the
deck and engineering graduates of the 1973 class. 1/ The
analysis covered a 1-year period beginning July 1, 1975.



1/The Coast Guard requires sailing records for both seagoing
  and Great Lakes shipping. Therefore, we were able to in-
  clude the Great Lakes Maritime Academy in our analysis of
  1975 and 1973 graduating classes.




                              7
      Percentage of the 1973 Graduating Class Sailing
           as Merchant Marine Office r s (note a)

Maritime academy (note b)           Seagoing merchant marine

Texas                                          74
Great Lakes  (note c)                          67
Massachusetts (note d)                         45
Maine                                          61
California                                     40
Merchant Marine                                29
Nev York                                       25

a/We did not include the other shippin9        :gory in this analy-
  sis because the Coast Guard  maintains   sailing  records only
  on the seagoing segment of  the merchant   marine.   Also, the
  academies' placement statistics  do  not  represent  employment
  in 1976 which we are measuring  here  for  the  1973 class.

b/Our analysis of seagoing employment (app. III) includes
  the Calhoon School.
c/Craduates of the Great Lakes Academy which sailed on the
  Great Lakes.

d/Because Massachusetts did not have a graduating class in
  1973, we analyzed sailing ecords for the class of 1974.

COMPOSITION OF MERCHANT MARINE
OFFICER WORK FORCE
     In response to a November 974 request from the Chairman,
House Committee on Merchant Marine and Fisheries, the Coast
Guard surveyed 200 ships to determine the training of the
officer crews. The sample survey covered 2,096 of the esti-
mated 13,000 merchant marine officers who sailed in 1974,
and the results follow.




                                8
            Source                   Number       Percent

Hawsepipe                             1,611         76.9
Merchant Marine Academy                 100          4.8
Maine Maritime Academy                   87          4.2
State University of New York
  Maritime College                       72          3.4
California Maritime Academy              49          2.3
Calhoon School                           44          2.1
Massachusetts Maritime Academy           37          1.8
Texas Maritime Academy                    7           .3
Great Lakes Maritime Academy              3           .1
Other (note a)                           59          2.8
No record                                27          1.3

    Total                             2,096        100.0

a/Includes graduates of various other schools:.
     The results of this survey are importanz because they
show that almost 80 percent of the active deck and engineer-
ing officers were not trained by the academies. Merchant
Marine Academy officials told us that this is because
academy graduates leave their initial ship employment for
career progression in the maritime industry or other posi-
tions ashore. MARAD officials pointed out that the Coast
Guard survey was restricted to the deep sea segment of the
merchant marine and did not include those academy gradu-
ates who found employment as licensed officers in other
segments of the merchant marine.
     Coast Guard officials told us the deep sea merchant
marine officer work force consists of a large number of
individuals who became merchant marine officers during the
world War II buildup. They believe these officers will be
retiring in the next 10 to 15 years, and that the merchant
marine officer work force will consist of a growing per-
centage of maritime academies' graduates. A 1976 MARAD
study shows that the median age for deep sea deck and en-
gineering officers is now 50 years; whereas, in 1967 it was
45 and 47 years respectively.
SUPPLY AND DEMAND
     In 1970, 1974, and 1976, MARAD prepared supply and
demand studies for the merchant marine officer work force.
The 1970 and 1974 studies show the demand only for the
deep sea segment of the merchant marine. The 1976 study
provides potential demand estimates of licensed academy


                                 9
graduates fcr the Great Lakes fleet, uniformed Government
service, ocean and coastal towing, offshore mineral and oil
exploration, inland waterway vessels, and the deep sea seg-
ment.

     The 1976 study includes low, high, and best estimates
for the forecast of the deep sea fleet segment. The pro-
jections for the high and low fleet estimates vary at most
by 0 percent from the best estimate forecast. The study's
best estimate for the deep sea merchant marine projects a
shortage of only 15 deck officers in 1980--the first year
a shortage occurs--with the maximum shortage of 354 deck and
engineering officers occurring in 1982; the shortage de-
creases after 1982. The 1976 study, a 10-year projection,
is based on numerous assumptions concerning the size and
composition of the deep sea fleet and output of the various
sources of merchant marine officers. Age and attrition of
the active merchant marine officers is considered.

     In its studies, MARAD did not attempt to present
diverse economic assumptions and conditions which might
exist over the next 10 years nor consider extremes in
shipping which could be caused by a war or a depression.
The demand estimates for the deep sea segment are based
on statistics compiled by MARAD on deep sea U.S. flag
ships. Demand estimates for all other segments were based
on estimates obtained through industry questionnaires.
MARAD officials said that tne studies were prepared pri-
marily for internal planning purposes.
MARAD'S GOALS

     MARAD has ot established program goals to justify
Federal involvement in merchant marine officer training.
There are no set minimal percentages of how many gr3du-
ates should sail on their licenses, how long they should
sail, or on what types of ships. Because there are no
goals, we cannot determine the degree to which employ-
ment of the academies' graduates in the merchant marine
justifies Federal support.
PERIODIC EVALUATION

     MARAD has not performed any extensive, formal evalua-
tion 1/ of merchant marine officer education including the


1/MARAD officials pointed out that the House Ad Hoc Commit-
  tee on Maritime Education and Training performed a review
  of merchant marine officer education from 1973 through
  1975.
                             10
extent the Federal role is justified and alternative sources
of merchant marine officers.

      The annual budgetary process does not include any such
  -aluation by MARAD. A MARAD official said that the Merchant
   Line Academy prepares the annual budget request and that
 _.RAD reviews and approves it. He said that MARAD does not
perform any extensive evaluation because (1) enrollment
levels and facility improvement programs were established
years ago and (2) incremental increases are minimal and due
to inflation. The budget MARAD prepares for Federal sup-
port of State maritime academies is also generally based
on the previous year's budget plus incremental hanges
needed for rising costs of maintaining and repairing the
training ships.
CONCLUSIONS

     Because of MARAD's broad definition of "merchant marine"
and in absence of goals for placing academies' graduates
in each segment of the merchant marine, we could not deter-
mine the extent that job placement in the merchant marine
justified Federal support of the academies. We believe
that MARAD should (1) establish job placement goals for
each academy and for each segment of the merchant marine
and (2) establish the minimum number of years that gradu-
ates should serve as ship's officers.
     Although the merchant marine acts state only that the
purpose of supporting the academies is to train merchant
marine officers, MARAD regards employment in the maritime
iadustry ashore and in uniformed Government service as valu-
able contributions justifying Federal support. If it is
MARAD's intent to also train academies' graduates for ari-
time industry ashore and uniformed Government service posi-
tions, we believe that goals should also be established for
those positions. However, if MARAD regards these positions
only as suitable alternatives when shipboard employment is
unavailable, employment in the maritime industry ashore and
uniformed Government service should not be used to justify
Federal support.

     We believe employment placement goals for graduating
classes of each maritime academy are necessary to evaluate
each academies' performance. Such goals will be a neces-
sary prerequisite for zero-based budgeting reviews which
may be required by the new Administration. In zero-based
budgeting reviews, formal, realistic statements of policies



                             11
and goals are needed to determine whether program perform-
ance justifies cost. In such an evaluation of merchant
marine officer education, the goals would measure the per-
formance of each academy in terms of the percentage of its
graduates finding employment as licensed merchant marine
officers in the deep sea, coastal waters, Great Lakes,
inland waters, and other segments of the merchant marine,
as well as ashore in the maritime industry if MARAD deter-
mines that it is one of the program's goals.
RECOMMENDATIONS

     We recommend that the Secretary of Commerce direct
MARAD to establish formal job placement goals for the
graduating classes of each academy and each segment of the
merchant marine. The goals should be in the form of per-
centages of the graduating class which should be placed in
each segment of the merchant marine and the percentage
which should go into maritime industry ashore if that is
one of MARAD's goals. We believe the goals will be useful
to the Congress for evaluating the academies' performance.
AGENCY COMMENTS

     MARAD officials had no comments on our conclusions and
recommendation. Their comments on the text of this chap-
ter were incorporated where appropriate.




                             12
                          CHAPTER 3
                  NEED FOR IMPROVEMENTS IN

              PROVIDING NAVAL SCIENCE TRAINING

                 TO MERCHANT MARINE OFFICERS

     The Merchant Marine Act of 1936 provides that the
United States shall have a merchant marine capable of serv-
ing as a naval and military auxiliary in time of war or
national emergency. The deep sea segment of the merchant
marine is an essential and critical component of national
defense because it provides the basic sealift support to
meet overseas military commitments. According to MARAD and
Navy officials, merchant marine officers need to know Navy
procedures and tactics to coordinate with the Navy in times
of peace, war, or national emergency. For this reason the
Navy provides naval science training at all but the Great
Lakes Maritime Academy. However, officers coming from the
hawsepipe and the Calhoon School do not receive this train-
ing, although they represent about 80 percent of the deep sea
merchant marine.

MOST MERCHANT MARINE OFFICERS HAVE NOT
BEEN TRAINED IN NAVY OPERATING PROCEDURES

     Navy contingency plans provide for the use of the
seagoing merchant fleet in time of national emergency. The
President has authority to order all U.S. flag merchant
ships to operate with the Navy in wartime. The Navy's Sea-
lift Readiness Program commits by contract U.S. carriers
participating in the peacetime movement of military cargo
to provide 50 percern. of their flag fleet for military
contingency purposes. These merchant ships' deck officers
would be required to cooperate with officers aboard Navy
vessels, especially in convoy maneuvers. Thus, there is
a need for merchant marine deck officers to have some
training in Navy convoy tactics, communications, and pro-
cedures. A Navy official told us that merchant marine
officers should also be knowledgeable n damage control;
casualty control; firefighting; and nuclear, biological,
and chemical warfare protection measures. Also, they
should be familiar with the uniform code of military
justice and have security clearance.
     The deep sea merchant marine officer work force
consists largely of nonacademy, nonreserve officers.   A



                             13
Coast Guard survey in 1974 indicated that about 80 percent
of the active merchant marine officers did not receive
their training at the Merchant Marine Academy or any of
the six State maritime academies and thus have no training
for operating with the Navy in wartime.
      The Navy recognized this problem and in 1973 established
the  Merchant Marine Reservist Program for nonacademy merchant
marine  officers.   Unlike the commissioning program for mari-
time  academies'  graduates, applicants did not need college
degrees  to qualify  for commissioning, and the new program
included communications officers as well as deck and engineer-
ing officers. Since 1973, only 46 of approximately 12,000 1/
seagoing merchant marine officers have received commissions
in this program. The Navy temporarily suspended further
commissioning under the program in May 1976 because of eli-
gibility criteria problems.
     Navy officials said that the program is being reviewed,
and that commissions under this program will probably be
reinstated when the problems are resolved. However, the
officials pointed out that the majority of the active
merchant marine deck and engineering officers would not be
eligible for commissions under this program because of age
and other factors. Thus, they would receive no naval science
training.
GRADUATES OF THE ACADEMIES

     The Navy provides a staff at each academy, except at
the Great Lakes Maritime Academy, to teach the naval science
courses it requires for entrance into the Naval Reserve.
MARAD requires all the midshipmen at the Merchant Marine
Academy and all subsidized students at the State maritime
academies to agree in writing to apply, at an appropriate
time before graduation, for a commission as ensign in the
U.S. Naval Reserve (inactive) and to accept such commission
if offered. MARAD exempted the Great Lakes Maritime Academy
from this obligation.
     Commissioned maritime academy graduates are either
active-duty Navy officers or inactive-duty ready reservists
until they have completed their 6-year obligation. After


1/This figure, the size of the work force in 1976, includes
  the maritime academies' graduates, most of whom are com-
  missioned in the Naval Reserve.


                             14
completing the 6-year obligation, the maritime academy
graduates are generally in the standby reserves. As of
July 1976 approximately 500 maritime academy graduates were
active-duty Navy officers, 1,000 were inactive-duty ready
reservists, and 1,200 were standby reservists. The maritime
academies' graduate reservists constituted about 1 percent
of all Reserve officers as of May 31, 1976.
     The number of graduates commissioned by the Navy during
1975 follows.
                                     Number of graduates
    Academy                       Subsidized   Commissioned

Merchant Marine                       201          191
Maine                                  77           40
Massachusetts                          60           58
Texas                                  18            7
California                             57           38
New York                              118           81

    Totl                              531          415

     Generally, there are a number of officers who drop out
of the program before completing their obligation. These
are identified in a yearly screening-out process which the
Navy performs. Reserve officials told us that all merchant
marine officers who are inactive-duty ready reservists are
contacted to determine their status, and their files are
reviewed for compliance. If they do not comply, they are
referred to the Naval Reserve Officer Mobilization Disposi-
tion Board for case review and action. In most cases the
Board recommends an honorable discharge.

     The number of discharges resulting from the Board's
recommendations increased from 15 in 1972 to 284 in 1973.
The number decreased to 211 in 1974. 1/ Navy officials
believe that the reason for the increased number of dis-
charges after 1972 is the end of the military draft.
Without the threat of being drafted and faced only with
getting honorably discharged, commissioned maritime school


1/A Navy official told us that because of funding limita-
  tions, the Navy did not screen the merchant marine of-
  ficer reservists in 1975 and 1976. However, screening
  is underway .nd should be completed by the end of June
  1977.


                             15
graduates may have little ince,.,ive for fulfilling the
reserve commitment. The Navy officials stated that before
the draft's end. the number of discharges was very small.
After the ending of the draft, maritime academies' re-
servists were less likely to answer correspondence and ful-
fill their obligation. MARAD and Navy officials believe
that individuals may be dropping out of the Reserve because
they lose interest if they cannot find employment as mer-
chant marine officers.
NAVY ACQUISITION OF ACADEMY GRADUATES
FOR ACTIVE DUTY
     MARAD contenes that midshipmen at the Merchant Marine
Academy and subsidized cadets at the State maritime academies
receive Federal support for being merchant marine officers
and for being employed in the maritime industry. MARAD
further re gnizes that service in the Navy is a legitimate
alternati?,  ut not the primary intent of Federal support.
By formal a eement between the Departments of Commerce
and Defense, the Navy is subject to a recruitment ceilirg
of 12.5 percent from among the graduating classes at the
acade ies. The number of graduates entering the Navy has
been substantially less.
     Navy officials support this view. Graduates receiving
laval Reserve commissions and employed in seagoing jobs are
not assigned mobilization billets 1/ because their occupa-
tion as licensed merchant marine officers at sea fulfills
the Navy's objective for their naval science training. If
they are not in at-sea jobs, they are available for assign-
ment upon mobilization and are assigned billets in the same
manner as other inactive reservists. The type of billet to
which they are assigned would depend on the Navy's needs at
that time.
     Naval officials told us that their primary concern is
that the academies' midshipmen and cadets receive adequate
training in naval science to operate as merchant marine
officers. However, the graduates are commissioned at little
extra expense to the Navy, and as reservists they represent
a pool of potential naval officers.


1/Mobilization billets are positions in the reserve.




                             16
CONCLUSIONS
     The objective of providing naval science training is
to have merchant marine officers capable of operating with
the Navy in times of peace, war, and emergency. Thus,
there does not appear to be a need for commissioning
academies' graduates to the Reserve since service in the
Navy is not the primary intent. Also, Reserve eligibility
criteria restrict the number of active merchant marine
officers who can receive naval science training under the
active merchant marine reserve program. There is a need
for an alternative program for providing naval science
training to all members of the merchant marine, which could
include correspondence courses or training at one of MARAD's
training centers or at the maritime unions' schools. The
Coast Guard's licensing examinations could include questions
relating to such training to insure that all merchant marine
officers have the necessary training. The alternative pro-
gram could include provisions requiring that all licensed
merchant marine officers be periodically tested and evalu-
ated in naval science skills to continue serving as li-
censed merchant marine officers.
RECOMMENDATION
     We recommend that the Secretaries of Commerce and
Defense direct the Navy and MARAD to jointly develop and
implement a program providing the minimum naval science
training required by all licensed merchant marine officers
and to see that all officers receive such training.
AGENCY COMMENTS
     Navy officials said that the commissioning of graduates
was necessary because it provided a source of well-trained
inactive-duty officers with seagoing experience, and the
source was available at little extra expense to the Navy.
MARAD officials supported this. MARAD and Navy officials
agreed that there as a need for naval science training
programs for active merchant marine officers who do not
qualify for the Reserve program.




                             17
                          CHAPTER 4
                   MERCHANT MARINE OFFICER
                EMPLOYMENT CONTROLLED BY MEBA
     The Merchant Marine Academy and State maritime academies'
officials said that since 1970 their graduates have not been
finding employment on merchant vessels under union contract
to MEBA. Further, since 1973 over 90 percent of the gradu-
ates of the Calhoon School upon graduation obtain employment
as third assistant engineers through the MEBA union. There-
fore, the academies' officials believe that their graduates
cannot compete equally with the Calhoon School graduates for
engineering officer positions on ships under contract to the
MEBA union.
BACKGROUND

     MEBA is the union representing the marine engineers on
over 90 percent of American vessels and other unions repre-
sent the remaining seagoing deck and engineering officers.
There are various other unions representing unlicensed sea-
men and deck and engineering officers in other segments
of the merchant marine.

     The number of engineering officers or a MEBA-contracted
ship is determined by collective bargaining between MEBA and
th. shipping companies. The Coast Guard establishes, by
licensing level, the minimum number of licensed officers re-
quired for each type of ship to assure safe operation of the
ships. The union-contracted number of officers exceeds the
Coast Guard minimum.

     It is standard maritime practice to assemble crews
for a ship in union hiring halls. The crews are assembled
by seniority from those union members present in the union
hall at the time the ship crew is being assembled.

OBTAINING EMPLOYMENT ON
MEBA-CONTRACTED SHIPS

     MEBA union officials told us that permanent membership
in the MEBA union is not and has not been closed. MEBA-union
membership is divided into three groups. Entry into group I
requires 200 days of covered 1/ employment in MEBA-contracted


1/Covered employment is positions covered under t   collec-
  tive bargaining contract.

                             18
positions each year for 3 successive years; group I includes
the senior, permanent members. According to the MEBA shipping
rules, group II consists of MEBA union members who have ob-
tained 200 days of covered employment under MEBA-union con-
tracts but have not met the criteria for group I membership.
Group III consists of the licensed engineering officers who
who are paying their service fees and working toward covered
employment requirements for advancement into group II.
     MEBA's president told us that although the shipping
rules require 200 days of covered employment for entry into
group II, the MEBA union permits applicants from Federal and
State maritime academies to enter group II status if they
have 365 days at sea.  Further, the sea time the cadet earns
on commercial and training ships while at the academies is
acceptable as part of the 365 days. Thus, academy graduates
are placed in group III until they accumulate the 365 days.
MEBA's president said that Calhoon School graduates qualify
for group II status because the Coast Guard requires they have
365 days at sea before they are permitted to take their li-
censing examination. He said that the academies' graduates
do not have enough sea time to qualify for group II status
because, to sit for the licensing examinations, the Coast
Guard requires 6 months of sea time for State maritime
academy graduates and 10 months of commercial ship sea time
for Merchant Marina Academy graduates.
     The Calhoon School can place its students in union-
covered third assistant engineering officer positions where
they can participate as well as observe. These officer
positions are required in union contracts but not by the
Coast Guard. A ship could sail with only the Coast Guard
required crew if the union permitted the shipping company
to do so, or if the union cannot fill the position which
is not required by the Coast Guard. Thus, if there are open-
ings for third assistant engineers--above the numbers required
by the Coast Guard--during assembling of crews at union halls,
and group I, II, or III union members do not fill them, then
Calhoon School students can fill them. Officials at the
Calhoon School told us that through their union contacts,
they keep track of the ship sailing schedules and union mem-
bers available at the union halls, and they arrange to have
students at the halls when there are openings for third
assistant engineers.

     Upon graduation, Calhoon School students have enough
seniority to put them in the union's group II category.
Graduates of the academies have to pay their service fees
for group III and sit around the hiring halls waiting for
leftover positions after those from groups I and II fill ship
openings.

                             19
                          CHAPTER 5
             PROPOSED TUITION FOR MERCHANT MARINE

                       ACADEMY STUDENTS
     The U.S. Merchant Marine Academy's graduates are not
required to serve as merchant marine officers in return for
their fully paid education. 1/ However, they o have a moral
obligation to serve as officers in the merchant marine.
Many 2/ Academy graduates do not fUlfill this moral obliga-
tion. One corrective proposal is to have Academy students
pay their own way through school.

NO OBLIGATION TO SERVE IN MERCHANT MARINE
     Members of Congress in past hearings have expressed con-
cern over the lack of any obligation to serve in the merchant
marine on the part of Merchant Marine Academy graduates in ex-
change for their free education. The issue was discussed in
recent years, when bills providing for an increase in stipends
to the State maritime academies were being considered. MARAD
argued that a legal obligation to serve in a seagoing capacity
in exchange for a free education or student stipends would re-
quire the guarantee of a seagoing position; they said that
this is impossible in view of the fluctuations in merchant
marine officer employment caused by economic and technological
changes, national emergencies, and wars. MARAD and Academy
officials pointed out that even during wartime the merchant
marine is a private industry, and that it may not be legal to
compel a private citizen to work on a private ship if he did
not want to.
PAYBACK PROPOSAL

     In 1969 a payback-requirement bill was introduced and
considered by the House of Representatives. If enacted into
l w, the bill would have required that graduates of the Aca-
demy and State maritime academies reimburse the Government
for the funds expended on them if they did not ork as a sea-
going licensed officer for a specified number of yearg.
MARAD, who opposed the bill, said the bill would be unfair
to graduates seeking shipboard jobs when jobs were unavail-
able. The bill was not passed.

1/Entrance requirements for the Academy appear in app. V.
2/Job placement statistics in app. IV show the number and
  percentage of the Academy graduates which find employment
  in the maritime industry ashore or in other pursuits.

                             20
STUDENTS' SUPPORT CAUSES
CONTROVERSIES
     MEBA officials told us that they believe a large number
of students go to the Merchant Marine Academy to get a free
education rather than a seagoing career.  Further, they
pointed out that many Academy graduates gc on to graduate
school. State maritime academies' official generally would
not comment on this, but officials of one State maritime
academy agrees that many students do attend the Academy only
to get a free education.
     State maritime academy officials said that it was unfair
that students in the Merchant Marine Academy received a com-
pletely free education while students receiving the same type
of training at the State maritime academies got only about
one-fifth, if any at all, of their education paid for by the
Government.  They also believed it was unfair that stiudents
at the Calhoon School got a free education which they elieve
is also at the taxpayers' expense.
     It is interesting that in a previous review 1/ of stu-
dent attrition at the five Federal service academies, we
sent a questionnaire to students attending the Academy in
1974. One of the questions was, "How important was tuition-
free education in your decision to enter the Academy?" Out
of 1,042 responses, 594, or 57 percent, said very important,
322, or 31 percent, said somewhat important, and 126, or
12 percent, said it was not important or did not respond.

PROPOSED TUITION AT THE A' .DEMY

     According to a MARAD official, the previous Administra-
tior's fiscal year 1978 budget submission proposed that
tuition fees be charged to each Academy student beginning
with the 1978 freshman class; however, no legislative pro-
posal was submitted to the Congress on the matter.

     MARAD is opposed to any student tuition charges at the
Academy because it believes:
     -- Attracting students would be a difficult problem with
        a tuition.



l/"Student Atrition at the ive Federal Service Academies,"
  (FPCD-76-12) Mar. 5, 1976.



                              21
-- Scholastic standards might have to be lowered to
   attract enough students.
-- Recruitment of minority students would be seriously
   impaired, if not negated.
--There would be problems recruiting students from
  all States and segments of society, and the status
  of the Academy would change from a national to a
  regional school.
-- Congressional appointment privileges would be rendered
   meaningless.
-- It would set an undesirable precedent for other Fed-
   eral academies.
-- Payment of stipends to State maritime academies'
   students might be questioned and possibly ended.




                        22
                          CHAPTER 6

             PROBLEMS COMPARING COSTS OF TRAINING

           MERCHANT MARINE OFFICERS AT THE VARIOUS
          MARITIME ACADEMIES AND THE CALHOON SCHOOL

     There are two ways to look at cost analysis and compari-
son:  (1) How much it costs the Government to train a merchant
marine officer from each of the various sources and (2) how
much it costs to train a merchant marine officer at each
academy regardles of where the funds come from.
COST TO THE GOVERNMENT

     To determine the cost to the Government, one takes the
total amount of Federal expenditures going to each academy
and the number of students enrolled and computes the Federal
cost on an individual basis at each academy. This will
always show that the Merchant Marine Academy 1/ costs the
most because the Government pays 100 percent f the cost.
The cost to the Government on an individual basis at State
academies will always be much cheaper than at the Academy
because the States and students pay the majority of the
costs. The cost to the Government on an individual basis
at the State academies will differ because (1) the fixed
annual grant will be applied to academies ranging from 81
to 832 students r.d (2) the costs of training ships differ
with each academy. The hawsepipe would be the cheapest
source of merchant marine officers because there are no Fed-
eral expenditures going to this source.

COST TO TRAIN A MERCHANT MARINE
OFFICER AT EACH MARITIME ACADEMY
AND THE CALHOON SCHOOL

     We gathered cost data at each of the eight maritime
schools which train merchant marine engineering and deck
officers, and we discussed costs with the school officials.
We did not perform any cost analysis because of a number of
complicated factors.
     It would be difficult to identify and compare costs
because



1/Our previous report, "Financial Operations of the Five
  Service Academies," (FPCD-77-117), Feb. 6, 1975, contains
  cost data on the Merchant Marine Academy.

                             23
     -- one academy and the Calhoon School are 3-year voca-
        tional schools, whereas the other academies have
        4-year curriculums;

     -- two academies, Texas and Great Lakes, are   hysically
        integrated with major colleges;

     -- the academies' budgeting and accounting systems
        differ;

     --the New York Maritime College is part of the New York
       university system which performs accounting and
       budgeting services for the academy;

     -- cadet sea training methods differ greatly among
        the Federal and State maritime academies and the
        Calhoon School;

     -- the size and age of t.e facilities differ; and

     --job placement ervices differ in size and emphasis
       among the academies.

     There are also other considerations which would be
difficult to address in any cost comparison of the schools.
For example, the training ships operated by the New York,
Massachusctts, and Maine maritime academies are the only
ready troop-carrying ships available to the Navy. A
problem would be determining what part. if any, of the
operating costs of those ships should be factored out for
standby national reserve purposes.

     Replacement costs of State maritime academies' training
ships would also be difficult to address in any cost com-
parisons of the maritime academ s.   These ships now range
in age from 25 to 37 years and   y have to be replaced in
about 10 years. A MARAD official said MARAD is studying the
feasibility of constructing two new training ships to re-
place the five training ships now in operation.  He esti-
mated that the cost to build the two new ships might be
about $100 million.  State maritime academies' officials
believe these ships are necessary for the schools' survival.
and that MARAD would also have to furnish crews for the
ships and pay all operating costs.

     We believe that to be fair and meaningful the schools
would have to e compared only on those elements common to
each school. and the analysis would have to be geared ex-
clusively to training for a licensed officer position.
The fact that schools have varying educational objectives

                            24
and programs makes it difficult to compare them, as do
the varying degrees of affiliation and integration the
schools have with other organizations. Thus, we believe
that it would be very difficult to make a fair and accurate
cost comparison of the eight schools. We believe any
attempt to make such a comparison would be (1) very time-
consuming, (2) involve numerous questionable assumptions,
adjustments, estimates, and projections, and (3) probably
serve no useful purpos-. Therefore, we did not perform any
cost analysis and comparison.




                             25
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JAMESL. OE            TrA,      A.                                                                                               C.


                             Mr. Elmer B. Staats
                             Comptroller General of the
                                United States
                             General Accounting ffice
                             441 G Street, N.W.
                             Washington, D. C.                                        20548

                             Dear Mr. Staats:

                                  For some time there has been considerable
                             controversy surrounding the employment records of
                             the graduates of the Federal and various State
                             Maritime Academies and, more particularly, the
                             numbers of graduates produced by these schools ir
                             relation to the number of available officer billets
                             or seagoing positions.

                                     Therefore, it is requested that the General
                                Accounting Office investigate this matter and gather
                                all necessary information to determine whether the
                                expenditure of federal funds on the education of
                                these individuals is justified.

                                                                      Sincerely,                                                               Ktaa-




                                                                      Leonor K                       r.       John B.)                Sullivan
                                                                                                           Chairman




                                                                                                     26
APPENDIX II                                                                                          APPENDIX I1

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                                                                            A      a ON* COM




                                                                                   March 11, 1976


                       Mr. Elmer B. Staats
                       Comptroller General of
                           United States
                       General Accounting Office
                       441 G Street, N.W.
                       Washington, D.C. 20548
                       Dear Mr. Staats:
                           It is my understanding that Chairman Leanor K. Sullivan
                       has asked that you investigate the controversy surrounding the
                       employment records of the graduates of the Federal and various
                       State Maritime Academies and, more particularly, the numbers
                       of graduates produced by these schools in relation to the number
                       of available officer billets or seagoing positions.
                           The claims and counter-claims concerning this controversy
                       need some sorting out. Therefore, I would like to join with
                       Chairman Sullivan in supporting a request for an investigation to
                       determine whether the expenditure of additional federal funds on
                       the education of these individuals is ustified.

                                                                             Sincerely yours,



                                                                             WARREN        MAGNUSO
                                                                             Chairman




                                                                              27
APPENDIX III                                               APPENDIX III


             PERCENTAGE OF GRADUATING CLASSES EMPLOYED

  AS MERCHANT MARINE OFFICERS ON SEAGOING VESSELS (note a)

  Maritime        1973 seagoing officers        1975 seagoing officers
  academy         EnginefrDec          Total-   Engineer    Deck   Total

Maine               53.0    76.2       60.9       59.2      64.0   60.8
Massachusetts
  (note b)            -       -          -        55.6      55.2   55.4
New York           14.9     36.5       25.2       29.0      37.0   33.9
Texas              90.0     71.4       73.7      100.0      75.0   83.3
California         39.3     40.6       40.0       20.8      35.3   29.3
Merchant Marine    21.0     31.0       29.0       22.0      35.0   31.0
Calhoon School
  (note c)         84.6       -        84.6      91.0         -    91.0

a/GAO analyzed Coast Guard sailing records for the 1973 and
  1975 graduating classes of the seven schools. The Great
  Lakes Maritime Academy was not included because its
  graduates do not sail in the seagoing merchant marine.
  The analysis covered a 1-year period beginning 2 years
  after graduation for the 1973 class and a 1-year period
  following graduation for the 1975 class. The percentages
  here represent actual sailing according to Coast Guard
  records and the figures and percentages in appendix IV
  represent job placements recorded by the academies; thus.
  the percentages for individual schools in this table do not
  coincide with those of the same graduating class in appen-
  dix IV. For example a graduate may be on record at the
  academy as being employed in a seagoing position, yet the
  graduate may not have sailed subsequent to graduation or
  may have sailed in a position where Coast Guard sailing
  records were not required.

b/Massachusetts did not have a graduating class in 1973.

c/The Calhoon School does not train deck officers.




                                  28
 APPENDIX IV                                                           APPENDIX IV




                               EMPLOYMENT STATISTICS FOR

                   1973 GRADUATES OF MARITIME ACADEMIES (note a)
                             Great
                             Lakes              Uniformed                         Total
  Maritime                   inland    Other   Government   Maritime            graduating
  academy         Seagoin~   waters   shiening    service    ashore     Other     class
Maine
    Number          38        34        8           2         14         14         110
    Percent         34.5      30.9      7.3         1.8       12.7       12.7       100
New York
    Number          48          -        -         15         45         16         124
    Percent         38.7        -        -         12.1       36.3       12.9       100
Texas
    Number          11          -       1            -         1          1          14
    Percent         78.6        -       7.1          -         7.1        7.1       100
California
    Number          41        9          -          8          2          1          61
    Percent         67.2     14.7        -         13.1        3.3        1.7       100
Great Lakes
    Number            -        9         -           -          -          -          9
    Percent           -      100.0       -                                          100
Merchant Marine
    Number          60       13         5          16         57         45        196
    Percent         30.6      6.6       2.6         8.2       29.0       22.9      100

a/Massachusetts' maritime school is not included becaus.e   it did not have a 1973
  graduating class.




                                         29
  APPENDIX I.'                                                              APPENDIX IV,



                               EMPLOYMENT STATISTICS FOR
                          1974 GRADUATES OF MARITIME ACADEMIES

                              Great
                              Lakes                  Uniformed
   Maritime                   inland                                                   Total
                                        Other       Government   Maritime            graduating
   academy        Seaoin      waters   shjn            service    ashore     Othe.     class
Maine
    Number         51          12               -
    Percent                                              6         29         15         113
                   45.1        10.6             -        5.3       25.7       13.3       100
Massachusetts
    Number         43           1       10
    Percent                                              -         2          13          69
                   62.3         1.4     14.5             -         2.9        18.8       100
New York
    Number         47           7           -
    Percent                                             5         31          41        131
                   35.9         5.3         -           3.9       23.7        31.3      100
Texas
    Number          5            -       2               -         5            -        12
    Percent        41.7          -      16.7             -        41.7          -       100
California
    Number         43           2           -           2          2           5         54
    Percent        79.7         3.7         -           3.7        3.7         9.2      100
Great Lakes
    Number           -         12           -                       -          1         13
    Percent          -         92.3                      -          -          7.7      100
Merchant Marine
    Number         74         !9        13
    Percent                                             8         29          39        182
                   40.7       10.4       7.2            4.4       15.9        21.4      100




                                       30
 APPENDIX IV                                                                APPENDIX IV




                                   EMPLOYMENT STATISTICS FOR

                             1975 GRADUATES OF MARITIME ACADEMIES
                                 Great
                                 Lakes              Uniformed                          Total
 Maritime                        inland    Other   Government   Maritime             graduating
 academy          Seagoin        waters   shipping   service     ashore      Other     class

Maine
    Number          14             42         -         4         10           2          72
    Percent         19.4           58.3       -         5.6       13.9         2.8       100

Massachusetts
    Number          49             11       28          1           5         10         104
    Percent         47.1           10.6     26.9        1.0         4.8        9.6       100

New York
    Number          47             13         -        23         53          25         161
    Percent         29.2            8.1       -        14.3       32.9        15.6       100

Texas
    Number          11               -       7           -          4           -         22
    Percent         50.0             -      31.8         -        18.2          -        100

California
    Number          28             18            -      6           4           -         56
    Percent         50.0           32.1          -     10.7         7.1         -        100

Great Lakes
    Number               -         10            -       -              -      5          15
    Percent              -         66.7          -       -              -     33.3       100

Merchant Marine
    Number          51             27       27         13         40          45         203
    Percent         25.1           13.3     13.3        6.4       19.7        22.1       100




                                                 31
 APPENDIX IV                                                             APPENDIX IV


                             EMPLOYMENT STATISTICS FOR

                     1976 GRADUATES OF MARITIME ACADEMIES

                             Great
                             Lakes              Uniformed                            Total
                             inland     Other   Government    Maritime             graduating
 Maritime
                  Seagoing   waters    shipping   service      ashore     Other      class
 academy
Maine                                                                      12           88
                    34        16         14          3           9
    Number                                                      10.2       13.6        100
    Percent         38.7      18.2       15.9        3.4

Massachusetts                                                              12          119
                    61        12         18          1          15
    Number                                                      12.7       10.1        100
    Percent         51.3      10.1       15.1            .8

New York                                                                   13          100
                    33         3          3         18          30
    Number                                                      30.0       13.0        100
    Percent         33.0       3.0        3.0       18.0

Texas                                                            2          1           16
    Number          11             -      2
                                         12.5            -      12.5        6.2        100
    'ercent         68.7

California                                                                              98
                    80        10          1          3           4           -
    Number                                                                   -         100
                    81.G      ln.2        1.0        3.0         4.1
    Percent

Great Lakes                                                          -       5          26
    Number                     21                        -
                                              -          -           -      19.2       100
    Percent              -     80.8

Merchant Marine                                                             22         213
                    92          8        25          9          57
    Number                                                      26.8        10.3       100
    Percent         43.2        3.7      11.7        4.2




                                         32
APPENDIX V                                      APPENDIX V

               U. S. MERCHANT MARINE ACADEMY

              HISTORY AND GENERAL INFORMATION

     The U.S. Merchant Marine Academy is located on a 68-acre
campus at Kings Point, New York, on the north shore of the
Long Island Sound. ~3he campus and facilities are designed to
accommodate an average enrollment of 1,000 midshipmen; how-
ever, it has the capacity to accommodate about 2,400 if
necessary. The Academy shares the campus with the National
Maritime Research Center.

     The Merchant Marine Act of 1936, as amended in 1938.
established the U.S. Merchant Marine Cadet Corps for the
training of merchant marine officers. Training was first
given on merchant ships and later at temporary shore estab-
lishments. The present site, in Kings Point, Long Island,
New York, was acquired in 1942, and the Academy was officially
dedicated on September 30, 1943. The Maine, Massachusetts,
New York, Pennsylvania, 1/ and California maritime academies
existed at the time. Direct Federal involvement in merchant
marine officer education was undertaken to help build up the
merchant marine for World War II and to upgrade the quality
of officer training.
     In 1945 the Academy changed from a 2- to a 4-year pro-
gram. In August 1949 the Merchant Marine Act was amended to
authorize the granting of bachelor of science degrees at the
Academy. The Academy was accredited by the Middle tates
Association of Colleges and Secondary Schools in 1940 and
was made a permanent institution by the Permancy Act of 1956.
     The primary purpose of the Academy is to prepare young
persons to become licensed deck and engineering officers in
the merchant marine. Academy officials told us that their
curriculums were designed to provide graduates with the nec-
essary education for careers in technical and management
positions in the maritime industry ashore as well as for
shipboard careers as officers. The Academy offers a 4-year
undergraduate program leading to bachelor of science degrees
in nautical science for deck officers or marine engineering
for engineering officers; it also offers a dual-license
curriculum for both. Each midshipman may minor or take
courses in such specialized fields as oceanography, nuclear
engineering, management science, computer science, mathe-
matics, chemistry, and naval architecture. During the 4
years at the Academy, each midshipman must obtain about 10



l/The Pennsylvania Maritime Academy closed in 1947.


                             33
APPENDIX V                                        APPENDIX V


months of practical experience aboard seagoing commercial
ships, H'ong with the naval science training necessary to
become a Nv   officer.

     To enter the academy applicants must show evidence of
high scholastic standing at an accredited high school, qual-
ify on college entrance examination board tests, meet Navy
Reserve physical requirements, and be appointed by a Senator
or a represe!ntative of the applicant's home State. The en-
rollee musL sign a moral obligation to seek employment as a
merchant marine officer upon graduation.




                             34
APPENDIX VI                                      APPENDIX VI

                  STATE MARITIME ACADEMIES'

               HISTORY AND GENERAL INFORMATION

     The Government has had a long tradition of supporting
State maritime academies. An 1874 act provided for estab-
lishing State nautical schools for training merchant marine
officers, and the Navy was responsible for implementing the
act. A 1911 act authorized the Navy to transfer Navy ves-
sels to the schools for training purposes.  Responsibility
for State maritime academy support was transferred from the
Navy to the Maritime Commission in 1941 and to MARAD in 1950.

     In 1958 the Government reassessed its role concerning
the State maritime academies and passed the Maritime Academy
Act of 1958, which defines the present Federal role. The
1958 act provides for (   payment of a $75,000 maximum
annual grant to each State maritime academy or a $25,000
maximum annual grant if stipulated requirements for out-of-
State students are not met, (2) payment of an annual stipend
for each student nct to exceed $600 a year, and (3) loan and
maintenance of a training ship.
     In 1971 MARAD placed a limit on the number of students
receiving stipends to control the budget and to discourage
further expansion of the State maritime academies.  The
ceiling was based on 1964 enrollments at the Maine, Massa-
chusetts, New York, California, and Texas academies. The
Great Lakes Academy, which was not founded until 1969, was
allotted 50 new stipends a year.  The number of new stipends
allocated to each academy for its freshman students follows.

                                   Stipend ceiling for
         Maritime academy            freshman class

        Maine                              150
        Massachusetts                       77
        New York                           251
        Texas                               35
        California                         110
        'Great Lakes                        50
              Total                        673
     Selection of students to receive stipends is at the
discretion of academy officials, and the selection criteria
vary among academies. The student selected for the stipend



                              35
APPENDIX VI                                       APPENDIX VI

will receive it each year until graduation. Once awarded
during the freshman year, the stipend is not transferable.
Thus, if a student receiving a stipend leaves school, MARAD
stops paying that stipend and does not allow another student
who is not receiving a stipend to take the dropout's place.
Because of the ceiling, there are many students eligible for
a stipend but not receiving one.

                              Students eligible but not
                              receiving stipends in the
       Maritime academy       1976 freshman class (note a)
                              Number               Percent
       Maine                    42                    21.9
       Massachusetts           173                    69.2
       ..ew York                 0                     0
       Texas                    36                    50.7
       California               70                    38.8
       Great Lakes               0                     0
              Total            321      Average       32.4
a/Opening day freshman class enrollment.

     Some of the students who do not receive stipends get
aid from other Federal, State, or private sources. The
above table does not include foreign students.

     MARAD requires that cadets at the Maine, Massachusetts,
New York, Texas, and California academies receive at least
6 months of training aboard a schoolship in cruise status.
The ships on loan to these schools follow.

                        Training           Date        Age as of
Maritime academy          ship          constructed       1977
Maine                  State of Maine      1952              25
Massachusetts          Bay State           1943              34
New York               Empire State        1952              25
Texas                  Texas Clipper       1944              33
California             Golden Bear         1940              37
     The cost to operate the State academies follows.




                               36
                                                 APPENDIX VI
APPENDIX VI
                                            Fundin
    Maritime academy                     1976      1977
                                            (millions)

    Maine                                $ 3.9    $ 4.0
    Massachusetts                          4.4      3.9
    New York                               3.9      4.6
    Texas                                  1.9      1.9
    California                             3.0      3.6
    Great Lakes                             .4       .4

        Total                            $17.5    $18.4

State University of New York
Maritime College
     The Maritime College, founded in 1874 as the New York
Nautical School, became the New York Merchant Marine Academy
in 1929 and the State University of New York Maritime College
in 1948. The college, one of 72 campuses in the State system,
has a 56-acre campus at Fort Schuyler on the Throgs Neck
peninsula of Bronx, New York.
      The college prepares young men and women for licensing
as officers in the merchant marine and for professional
positions in the maritime services and related industries
ashore. The college offers (1) bachelor of engineering
                                                        and
degrees in electrical engineering, marine engineering, marine
naval  architecture, (2) bachelor of science degrees in
transportation management, meteorology, oceanography, nuclear
science, and computer science/mathematics, and (3) graduate
programs leading to master of science degrees in transporta-
tion management. The college is fully accredited by the
Middle States Association of Colleges and Secondary Schools.
Marine engineering is accredited by the Engineers Council for
Professional Development.

 Massachusetts Maritime Academy
      The Massachusetts Maritime Academy, founded in 1891 as
 a nautical school, is one of 11 colleges comprising the
 Commonwealth of Massachusetts' State college system. The
 academy is on a 55-acre campus overlooking the Cape Cod
 Canal at Buzzards Bay, Massachusetts. The academy moved to
 Buzzards Bay in 1948.

      The academy prepares individuals to be licensed merchant
 marine deck and engineering officers. The academy, which
 offers programs leading to bachelor of science degrees in
 marine transportation and marine engineering, is accredited
 with the New England Association of Schools and Colleges.
                               37
APPENDIX VI                                     APPENDIX VI

California Maritime Academy

     The California Maritime Academy, founded in 1929 as a
nautical school, is an independent institution of higher
learning within the California State system of universities
and colleges. The academy, located at Vallejo, California,
occupies a 67-acre campus adjacent to the Carquinez Straits
in the San Francisco Bay area.

     The academy's programs, which lead  o a bachelor of
science degree in nautical industrial technology or marine
engineering technology, prepare students to be licensed
merchant marine deck and engineering officers.   n 1974
the academy switched from a 3- to a 4-year curriculum and
was accredited in 1977 by the Western Association of Schools
and Colleges.

Maine Maritime Academy

      The Maine Maritime Academy, founded in 1941, is located
at Castine, Maine, on the shores of Penobscot Bay. The
academy trains individuals to be licensed merchant marine
officers as well as prepares them to be leaders in the mari-
time industry both at sea and ashore.   The academy, which
offe,.s 4-year programs leading to bachelor of science degrees
in marine engineering or nautical science, was accredited in
1971 by the New England Association of Schools and Colleges.

Texas Maritiiae Academy

     The Texas Maritime Academy, located in Galveston, Texas,
and founded in 1962, is a division of Moody College of Marine
Sciences and Maritime Resources. The college is part of the
Texas A&M University system and is located on Pelican Island
in Galveston Bay.

     The academy offerr 4-year bachelor of science degree
programs in marine engLneering and marine transportation,
preparing individuals for licensing as merchant marine engi-
neering and deck officers. The Moody College is accredited
by the Southern Association of Colleges and Schools.

Great Lakes Maritime Academy

     The Great Lakes Maritime Academy, founded in 1969, is a
part of Northwestern Michigan College, located at Traverse
City, Michigan.  The city is on Grand Traverse Bay, which
opens into Lake Michigan.

     The academy's 3-year associate of science degrees in
marine transportation or engineering prepare students for
pilot and engineering positions on ships sailing the Great
Lakes.
                             38
APPENDIX VI                                               APPENDIX VI



                       STATE MARITIME ACADEMIES'

                      MARITIME ADMINISTRATION FUNDS


                                              Ship repair                        Total
Maritime               Student    Annual         and             Other          cost a
academy               subsidies   grant       maintenance       (note a)         year

California
  Maritime Academy:
    1974-1975       $141,000  $75,000         $ 229,000     $   -          $    ¢45,000
    1975-1976        176,006,  75,000           400,000      100,000            751,000
    1976-1977        174,000   75, 100          372,000         -               621,000

Great Lakes
  Maritime Academy:
    1974-1975           55,000    75,000         90,000           -             220,000
    1975-1976           53,000    75,000         14,000           -             142,000
    1976-1977           57,000    75,000         20,000           -             152,000

Maine Maritime
  Academy:
    1974-1975          222,000    75,000        551,000            -             848,000
    1975-1976          252,000    75,000        337,000         400,000        1,064,000
    1976-1977          294,000    75,000        502,000            -             871,000

Massachusetts
  Maritime Academy:
    1974-1975          212,000    75,000        212,000            -             499,000
    1975-1976          242,000    75,000        454,000         400,000        1,171,000
    1976-1977          240,000    75,003        413,000            -             728,000

State University
  of New York
  Maritime Academy:
    1974-1975          297,000    75,000        253,000            -             625,000
    1975-1976          321,000    75,000        424,000         400,000        1,220,000
    1976-1977          375,000    75,000        412,000            -             862,000

Texas Maritime
  Academy:
    1974-1975           51,000    75,000        194,000            -             320,000
    1975-1976           56,000    75,000        229,000                          360,000
    1976-1977           60,000    75,000        372,000                          507,000

a/Cost to install pollution control        systems aboard State academy
  training ships.




                                      39
 APPENDIX VII                                  APPENDIX VII

                CALHOON SCHOOL'S HISTORY AND

                     GENERAL INFORMATION

     The Calhoon School, founded in 1966, is located in a
14-story building in downtown Baltimore, Maryland. The
building contains classrooms, laboratories, a cafeteria,
                                                          a
gymnasium, dormitories, administrative offices, and medical
facilities.  The school's purpose is training young persons
to become licensed engineering officers in the seagoing
merchant marine and providing advanced technical training
to MEBA members.  The school operates on a vocational school
concept, offering 2 years of engineering and technical
courses and 1 year of practical engine room experience on
MEBA-contractad ships; the courses combine the practical
and theoretical aspects of engineering.

     School officials told us that students are trained
exclusively for shipboard engineering careers.  They
believe a curriculum including broad liberal arts and mana-
gerial training, as is offered in the maritime academies,
overeducate graduates for positions on ships and influences
them to seek careers ashore.  Unlike the maritime academies,
the school does not impose military regimentation on its
students; school officials explained that they were training
workers for private industry and not sailors for the
                                                     Navy.
They believe that military discipline is not a part of
civilian merchant marine shipboard lif- and therefore is
unnecessary.

      The school is geared to graduate about 90 engineers a
year.   School officials sid the school's enrollment can be
increased if necessary and would be if it was imperative.

     The MEBA training fund, which pays for the school's
opelation, is maintained through shipping compan, contribu-
tions determined through collective bargaining agreements.
The MEBA training fLnd was established in April 1967 under
these same bargaining agreements. The fund was created
train persons for their original engineer's license and to
                                                         to
upgrade the training of union members.

     Each shipping company contributes $1,000 a vessel a
year to the fund plus an established hourly wage rate;
                                                        the
rates differ between types of ships.  The companies are
also required to pay into the training fund (1) the dif-
ferential between cadet engineer and licensed third engineer
wages and (2) fringe benefits for cadet engineers working
in union-covered, licensed, third engineer's positions.


                              40
APPENDIX VII                                  APPENDIX VII

     A number of shipping companies contributing to the
training fund receives operational subsidies from the
Government. The Maritime Administration estimates that
about $2.9 million flowed indirectly to the MEBA training
fund in fiscal year 1975 through operational subsidies
paid to MEBA-contracted shipping companies.
     The public accounting firm which audits the MEBA train-
ing fund's financial statements estimated that it cost about
$1.9 million in 1975 to train cadets at the Calhoon School,
and that the cost for each student was about $5,800.
     Before 1974 MARAD did not regard contributions to the
MEBA training fund as a subsidized cost. A court ruling in
the Farrell Lines versus the United States case requires
MARAD to include training fund contributions as subsidized
costs because it is a labor cost to the company; thus it
falls within the meaning of the law which says hat collec-
tive bargaining labor costs are covered by operational
subsidy. MEBA officials said that (1) their agreement is
with the shipping companies and not the Government, (2)
the contributions come from the shipping companies and not
the Government, and (3) MEBA would receive the contribution
whether the companies received Government subsidies or not.
Therefore, they concluded that MEBA does not receive Federal
funding.




                              41
APPENDIX VIII                                      APPENDIX VIII


             COAST GUARD LICENSING EXAMINATIONS

     In 1973 the Coast uard changed the format of its
examinations for origin   third-mate and third-assistant
engineer licenses. A Cost Guard official said the change
from essay to multiple-choice questions was made to simplify
administration of the tests and assure objectivity. When
the new tests were first given in 1973, the percentage of
State and Federal maritime academies' graduates who passed
the test declined compared to previous years. A Coast Guard
official attributed the decline to student's unfamiliarity
with the examination format and how to prepare for it.
     We reviewed Coast Guard examination results for appli-
cants who took the third-assistant engineer and third-mate
tests from January through June 1976 to ascertain if grad-
uates of any particular schools performed considerably
better than others. A Coast Guard official told us that the
1976 results were comparative to those before the testing
format was changed. The results of our analysis follow.
                RESULTS OF MERCHANT MARINE OFFICER

                     LICENSING EXAMINATIONS (note a)


Maritime                           Number of           Percentage
Academy (note b)                  applicants         passing tests
California                            99                   92
Massachusetts                        111                   91
Maine                                 87                   99
New York                              16                   75
Great Lakes                            5                   80
Merchant Marine                      245                   96
    Total                            563       Average     94

Calhoori School                       35                  ]00

;j/Results for January trrough June 1976 for deck and engi-
  neering officer licensing applicants.

b/Texas Maritime School is not included because there were
  no candidates during this period.




                                42
APPENDIX IX                                     APPENDIX IX


         ENFORCEMENT OF LAW REQUIRING OFFICERS ON
              SUBSIDIZED MERCHANT SHIPS TO BE
              NAVAL RESERVISTS IF ELIGIBLE


     Section 302(G) of the Merchant Marine Act of 1936 (title
46, U.S.C. 1132(G)) requires that deck and engine officers
on vessels receiving an operating differential subsidy and on
those operated by the Maritime Administration shall if
eligible be members of the Naval Reserve. On June 30, 1975,
27C ships in the operating U.S. fleet were covered by opera-
ting differential subsidy contracts. In congressional testi-
mony it was alleged that this law was not being enforced by
the Coast Guard.

     In the past this provision of the law has been enforced
by Coast Guard shipping commissioners when officers signed
on shipping articles to start their voyages. The key wording
in the law is "if eligible." To work on the vessels, offi-
cers either presented evidence of a Navy Reserve commission
or a letter of ineligibility from the Navy. A Navy official
told us that most merchant marine officers receive a letter
of ineligibility because they are either too old or do not
meet the educational requirements.
     Coast Guard officials indicated that shipping commis-
sioners have not enforced this law since May 1976 because
the Navy suspended the reservist program for nonacademy
merchant marine officers, which had been initiated in 1973.
Currently no program exists which would allow these officers
to obtain a Reserve commission and be eligible to serve
aboard vessels receiving operating differential subsidies.
     Apparently the Coast Guard has ben enforcing the law.
The fact that few officers on subsidi2zed ships are naval
reservists is attributable to ineligibility rather than lack
of enforcement.




                              43
APPENDIX X                                     APPENDIX X

        COAST GUARD LICENSING RENEWAL AND UPGRADING

     Under present Coast Guard regulations, an individual
who becomes licensed as either a deck or engineering officer
must renew his license every 5 years. At the end of 5 year3,
the license expires if it is not renewed, and the individual
has an additional year of grace to renew the license. After
a minimum of 1 year of shipboard experience, an officer is
allowed to take the Coast Guard examination for the next
highest licensing level.

     We examined the Coast Guard licensing records for 1970
graduates of the maritime academies who were due to renew
their licenses in 1975 to find out how the graduates compared
in renewing their licenses. The following table shows the
results of the analysis.




                            44
APPENDIX X                                            APPENDIX X




             ANALYSIS OF COAST GUARD LICENSING RECORDS FOR

                      1970 MARITIME SCHOOL GRADUATES
                                                                  Percentage
                       Number of                                   allowing
  Maritime          graduates issued    Percentage   Percentage    license
  academy           original license     renewing    upgrading     to expire

California                 69               48           44            9

Maine                     118               45           43           12

 Massachusetts             45               38           40           22

 State University
 of New York              149               44           22           33

 Texas                     27               26           59           15

 U.S. Merchant
   Marine                 176               36           31           30

 Great Lakes              No graduates during this period

 Calhoon School           No comparable statistics (note a)

 a/The Calhoun School's graduates from January 1, 1970, to
   November 24, 1972, were all issued temporary third-assist-
   ant engineering licenses because at that time the school
   operated a 2-year training program. To make the temporary
   license permanent, the school graduates needed to sail at
   sea for a year and were permitted 5 years to obtain the
   sailing time, according to a Coast Guard official. Once
   they received a permanent license, they had 5 years to
   renew it. Thus, they did not have to renew it before 1976.

   By analyzing Coast Guard licensing records, we found that
   57 percent of the Calhoon School graduates licensed in
   1970 converted their temporary license to a permanent
   license. Of those permanently licensed, 21 percent up-
   graded their license although they had to obtain another
   year of sea time in addition to the year required for
   converting their temporary licenses to permanent licenses.




                                   45