In earlier years the predecessor of the Maritime Administration, 

 the Maritime Commission, was approached several times with the request to 

 insure mort^-ages on shrimp vessels and New England trawlers, but without 

 success. Requests were denied "because of (l) instability of the fishing 

 trade, (2) inadequate standards maintained in the construction of the 

 vessel in question, or (3) exhaustion of the guarantee fund. 



In the course of a conference called at the request of the 

 industry on January 6, 1955, the Maritime Administration expressed its 

 readiness to insure mortgages given for the construction or recondi- 

 tioning of shrimp vessels. Among the reasons which prompted this de- 

 cision were: (l) shrimp vessels of today are big modern boats, the 

 construction of which involves a substantial investment. They are equipped 

 with modern navigation equipment including radio, loran, depth finders, 

 etc., (2) the experience of commercial banks with the financing of shrimp 

 vessels has been good, (3) there is a distinct need for reconditioning 

 vessels in many instances, (4) modernization of the fleet is considered 

 to be in the national interest. 



Unfortunately, few vessel owners have taken advantage of the 

 provisions of this plan to date. One of the main reasons for this re- 

 luctance is a feeling that too much red tape is involved in obtaining a 

 guarantee. Nevertheless, a step in the right direction was taken. The 

 most significant consequence of the agreement of Januaiy 1955 was that 

 some shipbuilders as well as some local banks have adopted a five-year 

 repayment plan on loans for shrimp vessels as compared with the previous 

 three-year plan. 



The enactment of the Fish and Wildlife Act of 1956 (70 Stat, 

 1119) provided another source of loan funds to fishing vessel owners 

 and operators. Under the provisions of Section h (reproduced belovj) of 

 this law, operators of shrimp vessels as well as operators of other 

 fishing craft ought to find it comparatively easy to obtain adequate 

 financing, 



SEC. 4. (a) The Secretary /of the Interior/ is authorized 

 under rules and regulations and under terms and conditions 

 prescribed by him, to make loans for financing and refinanc- 

 ing of operations, maintenance, replacement, repair, and 

 equipment of fishing gear and vessels, and for research 

 into the basic problems of fisheries, 



(b) Any loans made under the provisions of this section 

 shall be subject to the following restrictions: 



(1) Bear an interest rate of not less than 3 per 

 cent\ira per annum; 



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