Document q3MNZ9LzZ3nKO8VZKjazwj5q5

PUBLISHED BY THE MARINE DIVISION, HUMBLE OIL & REFINING COMPANY Vol. 4, No. 16 August 23, 1962 Company Announces Plans for Fleet Operating Economies The following is a statement of Companyplans to reduce costs in order to "remain com petitive and stay in the business of transporting oil by tanker" made by Joseph Andreae. Assist ant General Manager. Marine Division. The American Merchant Marine is facing one of the most critical times in its entire history. Government, union, shipbuilding and repair, ship owning and other interests have indicated they are concerned about its future. The problem, in its simplest terms, is that the cost of building ships in this country and the cost of manning them at prevailing American seafaring w'ages is such that wre can not compete with operation under other flags. The American flag tanker has by law the ex clusive right to coastwise trade and certain off shore cargoes. Even so. the plight of the American tanker is today more precarious than other U. S. flag shipping. It can not compete in foreign trade with ships of other nations. The major portion of U. S. flag tankers trade between ports on the Gulf of Mexico and the East Coast. Now even this trade is in jeopardy because nine major oil com panies have announced their decision to build a high-capacity petroleum products pipeline from Texas to New York. Your company, Humble Oil & Refining Com pany, is not a participating owner in this line. It is Humble's intention to service Eastern Seaboard points of consumption by owned tankers so long as this continues to be economically feasible. This re quires two things, namely; continuity of supply and costs competitive with other means of trans portation. Continuity of supply means that our ships must operate efficiently and without inter ruption. The independent unions in our fleet have contributed to this by working cooperatively to solve mutual problems. On tire cost side we must have a modem fleet operating as economically as possible. We believe we can best do this in the following ways. First, we would continue to im prove our fleet by providing equipment which would enable the seagoing personnel to perform their jobs at maximum efficiency. Second, we would modernize the fleet by retiring the remain ing three T-2 vessels within the next year. These ships are surplus to our requirements and are costly because of their size and age. The fleet would then consist of modern vessels from 27,000 dwt. up to 49,000 dwt. and, moreover, we are actively considering the possibility of building even larger vessels of a simplified design. Third, in order to reduce the cost of manning, we would reduce the crew- complement by seven unlicensed men per vessel on the smaller ships and nine men on the six larger ones. It is not the intention that the remaining men would do more work. Through various means work would be eliminated and redistributed. The retirement of the three small ships and the reduction in crew' complement would result in a sizable surplus in the ranks of our seafarers. We are prepared to discuss with representatives of employee groups, the terms under which the sur plus could be dealt with. Generous allowances in the form of early retirement, or severance pay for those not eligible for early retirement, are included in our thinking. We feel this is a necessary and realistic step in our effort to remain competitive and stay in the business of transporting oil by tanker. The prob lem we face is one that is common to all tanker owners and their problems will be even greater than ours because in many cases they are partici pants in the new' pipeline and they will undoubt edly have surplus vessels to be disposed of. The plans outlined have been given very care ful consideration and it is hoped that all con cerned in the seagoing employee ranks will do the same. We honestly expect that when this program is implemented the result will be an efficient tanker fleet that will be competitive in every wav for a long time to come. a w ir.U FIIOM THE O JLLE rriO N S IN THE Cl THE UNIVERSITY OF TEX .m < I, Esso Scranion being eased alongside Alexandra Docks, Bombay, June 3, to discharge part of her lube oil cargo. Previously, 9,823 bbls. of hexane were deliver ed at Butcher Island, off Bombay harbor. Esso Scranton Completes India Voyage, Starts Another The good ship Esso Scranton (Captain Bernard Roberts and Chief Engineer Thomas J. Bov) steamed into Jacksonville harbor Aug. 2. com pleting a 104-day voyage totaling more than 25,000 miles. The odyssey began on April 20 when she sailed from Baytown with a parcel of hexane and 10 grades of lube oil totaling 108,000 bbls. After bunkering at Freeport and putting in to Cadiz, Spain for minor repairs, the Scranton tran sited the Suez Canal May 18 and arrived at Bom bay on the 28th. There she discharged the hexane and 72,518 bbls. of lube oil. She left June 12 for Calcutta, a sea run of 1,991 miles, where the balance of the cargo was delivered, June 13-16. Incidentally, the Bombay office of Esso Standard Eastern, Inc., wrote that the lube oils were re ceived without water contamination (also the Esso Jacksonville's at Bombay) and that "the Masters and other members of the vessels' staff were very cooperative in arranging bulk cargo discharge". Returning, the Scranton sailed in ballast to Bahrein in the Persian Gulf, loaded 11 7.000 bbls. (above) Bombay workmen connecting hose at the dock and (below) discharging from ship to tank trucks, four at a time. There appears to have been no lack of "supervisory personnel". of diesel oil for Donges. France (discharged July 19-21) and then home. A variety of weather was encountered -- north west gales and heavy, rough seas for four days on the outward transatlantic crossing, heavy seas from Cadiz to Port Said and moderate winds and seas on the runs to the Indian ports. Moderate to gentle winds and seas prevailed for most of the return trip. Speaking of return trips -- the Scranton is making another voyage to India. Her schedule is to sail from Baytown Aug. 25. bunker at Aden Sept. 20 and discharge at Karachi, Pakistan on Sept. 26, Bombay the 30th and Calcutta Oct. 12. Captain Earl E. Walker will be in command and William L. Kelly, Chief Engineer. . ' When the Esso Scranton docked at Jackson- The Scranton discharging the balance of her cargo at Budge Budge on the River Houghly, near Cal cutta. EXX-MOR-007808 ville, everyone aboard except Captain Roberts and Chief Mate Robert H. Stotts went ashore for 60, 70, 80 and as high as 95 days' paid leave. That last figure is for Chief Engineer Bov. who is off on another trip, this time for pleasure, to Hawaii. Japan, Malay States. Australia and other Far Eastern points. No moss on that fellow. TAFFRAIL TALK - Neal J. Brower, son of Third Mate Jean S. Brower (ex Esso Jamestown) has been granted a Walter C. Teagle Scholarship to attend Massa chusetts Institute of Technology. Mr. Brower grad uated from St. Peter's High School, Staten Island, with high honors in mathematics, chemistry and physics, including five other scholarship offers. Richard T. Froyen, son of Captain Lars Froyen, of the New York Harbor tug Esso New Jersey, has also received a Teagle Scholarship to Cornell University. * ** Mrs. Sally Schlarb, wife of Earle J. Schlarb, Radio Officer in the Esso Jacksonville, writes that she received a letter from her husband via the "Singapore Strait Mail Buoy" (Fleet News, Aug. 9) and that she had written to the men who picked up the buoy to thank them and enclose a token of appreciation. * ** On Aug. 13 the Esso Lexington (Captain Arthur H. Lankford and Chief Engineer William W. McKay) on a voyage from Mobile to Charleston, radioed: "Had disabled ketch Sea Fever with eight persons aboard in tow from 0343 to 1008. Relieved of tow by Coast Guard vessel 95313." The 52' ketch, enroute from Florida to New York, got into trouble Aug. 12 when sails ripped in a storm off Jacksonville and about 50 gal. of gasoline leaked into the bilge. The owner, Howard Petith, said that several ships passed during the night but none stopped until the Esso Lexington came by. The Coast Guard cutter towed the yacht into Charleston. * ** Esso Seamen's Association members voted by secret ballot to approve the Company's proposed twice-a-month payroll system by a margin of ESSO FLEET NEWS is published for the seagoing em ployees of the Marine Division, Humble Oil & Refining Co.: J. D. Rogers, General Manager; Joseph Andreae, Assistant General Manager; Sydney Wire, Assistant Gen eral Manager. W. E. Gardner, Editor. Contributions and suggestions are invited and should be addressed to The Editor, Esso Fleet News. Humble Oil & Refining Co., P. O. Box 1512, Houston 1, Texas. better than 8 to 1. Although the Ships' Payroll and Seagoing Personnel sections are "up to their ears" (or higher) in preparations for the change over. it is expected that the first pay period under the new system will be Sept. 1-15 and draw checks will be mailed in time to be received on the latter date. * ** Shortly after the end of the year, the Thrift Plan Accounting Office will mail statements to members who have, or had. loans during the year. Statements will show' the amount of interest paid on the loans, which should be a help in preparing income tax returns. Many men in the fleet have requested this information. * ** During her recent repair period the Esso Balti more was equipped with a new' stern tube sealing system. Instead of a water-lubricated lignum vitae bearing, the Baltimore now has an oil lubricated, babbitted bearing that, it is expected, might reduce friction enough to add another revolution or two with the same power or reduce fuel consumption 3 to 31/2%. The MIS-Adventures of J.ST(jAlB\fPffONE Mc FRACTURE This time, J. Stumbleprone slipped on the edge of a feed pump platform and gave his shinbone a real dirty dig. Why? For one thing, the platform is about 2V2' above the engineroom floor plates. For another, J. S. is not quite as spry as he used to be. (Who is?) Which gets to the point of this piece -- as we come closer to being an old goat than a young kid, we must rely more on head work the foot work to stay heal: u< 12 UJ iOC <s iO = < H ts. jijuS x< jE filhftT uo. 1id2o u5=a5e 5m UJ H E EXX-MOR-007809 comu FROM THE COLLECTIONS IN THE CENTER FOR AMERICAN HLSTOR THE UNIVERSITY OF TEXAS a t Au s t in Economy-Type Tanker Proposed To Combat Pipeline Competition In a letter to the U. S. Maritime Administrator early this month, Edwin M. Hood, President of the Shipbuilders Council of America, suggested that the Government agency consider the con struction of a semi-automated, economy class tanker to compete with the Colonial Pipeline, now being built. (As previously mentioned, Humble is not one of the nine oil companies participating in the ownership of Colonial.) Mr. Hood said that the equivalent of 51 T2 tankers will be displaced when the pipeline starts operating from the Gulf to East Coast. He based this prediction on the 600,000 bbls. per day initial thruput of refined products planned for the line. Quoting from a special study made for the Council by a management consulting firm, Mr. Hood noted, however, that . . the future outlook for tanker transportation indicates some promising possibilities. Costs, and hence rates, of tanker operations may be divided into two approximately equal parts: (1) costs associated with the invest ment and (2) operating costs, such as fuel, crew's and other expenses. Improvements in both areas appear likely in the near future, thereby strength ening the competitive position of tankers." The "improvements" referred to are mainly proposed tankers of 50,000 to 60,000 dwt., built to simplified designs, with semi-automated equip ment and requiring fewer crew' members and a consequent reduction in crew' quarters. "The combined effect of these expected econo mies," the report stated, "would presumably re duce (tanker) . . . rates to a level very competitive w'ith oil pipeline rates." This is the deluxe air conditioned barber shop owned and operated by Thomas H. Gilreath, who sailed as Messman and Second Cook in the fleet from 1950-58 and is a brother-in-law of Oscar Garcia, UM, Esso Baltimore. Located in North Wilkesboro, N. C., the building and adjoining parking lot were designed by Mr. Gilreath. He went to school in Winston Salem, N. C. to become a master barber, started with five men in his shop, now has eight. Melvin J. Erb, AB in the Esso Baltimore, has an attrac tive handmade end table here, a variation of the popular shipboard hobby of inlaying matchsticks. On the frame, a discarded rope reel with squared bottom end, Mel glued thousands of burnt kitchen-size matches (12 boxes of them, to be exact). He then sanded the surfaces and put on four or five coats of a clear plastic finish. The result is a handsome piece of furni ture -- and it can be disassembled. In spite of this being his first attempt, the project was completed in about three weeks' spare time. Mel has more than 14 years of continuous service in the fleet. His home -- in Westminster, Md., 51 miles northwest of Baltimore -- is a ranch style house on a third of an acre. He and his wife, Veronica, have two sons, Ronald, 4 V2 and Dale, 3. RECENT RETIREMENTS Oiler Paul R. Hemphill. Years ago. Air. Hemphill was in the banking business and he has never lost interest in fi nance. So, watching the stock market and particularly "J", the Standard Oil Company (NT. J.) symbol on the ticker tape, will be one of his activities after retirement, Aug. 1. Another will be keeping his house and lawn at Somers Point, N. J. trim and tidy. Mr. Hemphill served in the fleet for more than 19 years. He never missed a ship and w'as never "invited" to appear before the Personnel Relations Committee. He started as Wiper in the George W. Barnes on March 19. 1943. also made wartime voyages in five other vessels, and three times w'as incorrectly reported lost at sea. With few excep tions, he sailed as Oiler from Oct. 1946 until he left his last ship, the Esso Bermuda, two months ago. Mr. Hemphill and his wife, Anna, have three children. Elizabeth Ann. Carl and Judith. Judy is a senior at Cornell University under a Teagle Scholarship. EXX-MOR-007810