1 - American Memory

241
"These developments, in turn, affectetl employment and, in n number of ways,
affected both wholesale and retail trade. It is significant that the banks tight-
ened credit throughout the Territory as soon as the possibility of a strike in
June became known.
"In the end the strike did not materialize, but the fact that even the threat
of such a strike was so .serious that its effect reached beyond shipping and
stevedoring into financial, industrial and trading enterprises throughout the
Territory clearly indicates the . . . 'predicament' ... in Hawaii".
II
EMEPOENCY RELIEF SHIPMENTS AND STOCKPIUNO
In the past, provisions for emergency relief shipments were made during four
of the longest strikes (54 days in 1947. 9« days in 1048, 177 days in li»4i>, and
63 days in 1952). Tlie last time that federally-owned and operated ships were
used to bring emergency shipments to Hawaii was during the 03-day PilA-SUP
strike (May 25-.Tuly 28, 1952). Nwvy and MSTS ships brought in .several full
and partial civilian cargoes during that emergency.
The plans which exist today for the administration of tlie Governor's emer-
gency powers include provisions for obtaining Inventories of critical commodities
and for allocating space on emergency shipping as it may be made available.
These plans, which have not been used in recent years, were administered by an
Emergency Food Committee chaired by Edward I)oty of the State Civil Defense
Agency. The records of this coramitee demonstrate the pattern of the first short-
ages which appear in essential foods, pharmaceuticals and animal feeds. They
show, however, that no one goes hungry even during a long strike.
Strike effects on inventories and tlie practicability of stockpiling as a hedge
against maritime strikes were studied in 1964 at the University of Hawaii upon
direction of the State Legislature. The report, "Stockpiling as a Solution to Short-
ages from Maritime Strikes affecting Hawaii," was conducted by a Profes.sor of
Marketing of the University of Notre Dame. A reprint of the Introduction. Sum-
mary and Conclusion of this report is attached.
CHAIIDER OF COMMERCE OF HONOLULIT,
JJonohiUt, Haicaii, March 10, 196i.
Memorandum to: Meml)ers of the Uninterrupted Shipping Committee.
From: Leonard Withington. Secretary.
Subject: Stockpiling as a solution to Shortages from Maritime Strikes affecting
Hawaii.
This .study conducted for the Economic Re.search Center, University of Hawaii,
by Dr. E. .T. McCarthy of the University of Notre Dame, is pertinent to the inter-
ests of this committee. We have reprinted the Introduction, Summary and Con-
clusion contained in his report and are forwarding you a copy herewith.
It is interesting to note how close Dr. McCarthy's findings are to the long-term
recommendations of the Chamber of Commerce of Honolulu, calling for advance
planning by the State and Federal Governments which would provide for interim
shipping .service in the event that normal shipping fails to function.
Tlie Economic Research Center has also released a report, "Another JMok at
Hawaii's Ocean Transportation Problems", by Dr. W.vtze florter. Professor of
Economics, UCI/A, and Visiting Economist, University of Hawaii. We have not
reprinted portions of this report which is less [wrtinent to the specific interests
of the Uninterrupted Shipping Committee. However, it does include some reference
to, but no new light, on iws.sible results from remo\Til of sabotage laws and the
introduction of foreign ves.sels into the Hawaii-mainland domestic trade.
If you wish to read the full text of either of these reports, a copy may be bor-
rowed from the committee flies.
REPRINT OF INTRODUCTION, 8UM^RAKY AND CONCLUSION
"STOCKPILING AS A SOLUTION TO SHORTAGES FROM MARITIME STRIKES AFFECTING
HAWAII"
(By E. ,T. McCarthy, Ph.D., Associate Professor of Marketing Management,
University of Notre Dame, with the research assi.stance of R. Brownell, M.A.,
Economic Re.search Center, University of Hawaii, Honolulu, Hawaii, February
1964)
[Reproduced by the Uninterrupted Shipping Committee, Chamber of Commerce of
Honolulu—March 1004]