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only gap remaining is the assurance that our lifeline will be kept open.
You can close that gap with the passage of H.R. 7189.
Mr. Chairman, I would like to make one final interjection. It just
occurred to me after reviewing all the records in both the House and
the Senate on this type of measure there has been no recorded opposi-
tion in Hawaii from any citizen of Hawaii regardless of his occupa-
tion. All of the opposition to this measure has come from people who
live on the mainland.
I would like to call that to your attention. If you can find anything
in the record from any citizens of Hawaii, I would like to see it be-
cause I haven't found any. I have never heard anyone in the islands.
be it management, labor or government, openly put himself on the
record as opposed to this measure.
Thank you, Mr. Chairman.
Mr. DiNGELL. Mr. Mason, you have given the committee a most help-
ful statement. The Chair does note that you have appended to your
statement, which I have followed most carefully, a survey of the cost
of carrying extra inventory as a hedge against strike-induced shipping
interruptions to Hawaii by the Department of Business Research, Bank
of Hawaii.
I assume you wish to have that added to your statement.
Mr. MASON. Yes, sir.
Mr. DiNGELL. Without objection that will be inserted at the con-
clusion of your statement. The Chair also notes that you have
appended thereto a speech by Mr. C. W. Shafer, president of Shafer,
Raoett & Knopf, Inc. Without objection that aiso will be inserted
in the record at this point.
The Chair notes that you have a research report by the Hawaii
Employers Council which also will appear at the conclusion of your
statement without objection.
[The attachments referred to follow:]
A SrmvKT or THE COST OF CABBTINO BXTBA INTBNTOBT AS A HEOOB AGAINST
STKIKE INDUCED SHIPPINQ INTEBBUFTIONS TO HAWAII
By the Department of Business Research, Bank of Hawaii—September 10, 1974
The cost of living in Hawaii has traditionallr been much higher than on the
Mainland United States. Recognizing that economic reality, our local media and
community organizations have tried to define more precisely the factors within
our island economy that contribute to higher prices. A frequently cited factor is
the cost accrued from shipping interruptions due to longshore and maritime
strikes. It has been shown in previous studies that the unemployment level, the
number of business failures, and availability of everyday consumer items are
all directly tied to any prolonged surface shipping shutdown. However, the
everyday burden placed on otir economy due to the fear of a stoppage has been
previously said to exist, but has eluded quantification.
A questionnaire concerning the effect of the uncertain shipping situation upon
inventory management policies of local businesses was mailed to a cross-section
of business firms on Oahu, in an effort to determine the extent to which costa
may be incurred as the result of carrying extra inventory as a hedge against pos-
sible interruptions to shipping. The following results are based on a response
from firms that have aggregate annual sales of over $300 million.
An analysis of these returns indicates the following: Seventy percent of those
responding said that they do keep "insurance"' inventory. Nineteen percent said
the.v keep larger Inventories when labor contracts are expiring, and eleven percent
said they were not affected by the dock situation.