52
Mr. LENT. I understand that a reading of the board meeting tran-
scripts suggests that both American and Panamanian board mem-
bers believe-or some of them believe-that the Commission ought
to get out of the insurance business and somehow change their reg-
ulations so shipowners would bear a greater share of the expense
of casualties.
The supervisory board's objective appears to be reduction or pref-
erably elimination of Commission liability for marine accidents
both outside and inside the locks. Is that the case?
Mr. GIANELLI. Let me say, Mr. Lent, there has been much discus-
sion about this matter as far as the Board is concerned. But as of
this moment, the only specific action which the Board has taken is
to direct the Commission to study alternatives for reducing the cost
of marine accidents to the agency. Let me say that the situation
becomes complex because, as you know, at the present time the
Commission puts pilots on the ships the minute they enter the
waters for transit through the canal; and there is some concern
about whether or not, if we try to, for example, eliminate the liabil-
ity of the Commission for these claims, whether it might also have
the effect of changing who, in fact, is in charge of the ships as they
transit the canal.
So I think the entire subject is a complicated one. We have
talked about it at great length; but the Board has come to no con-
clusions with respect to any changes at this time.
Mr. LENT. Is it true that shipowners carry insurance?
Mr. GIANELLI. That is correct, for their purposes; yes.
Mr. LENT. This question-also should be asked of the other wit-
nesses-what would be the problem with the shipowners' insurance
being the responsible entity for accidents in or out of the canal
while a pilot of the Panama Commission is aboard?
Mr. GIANELLI. I suspect that perhaps you should talk to the ship-
ping people about this. I would expect that, if they feel that their
insurance is going to cover the transit, then they would want their
masters in control of the ships. We have been looking at that prob-
lem also; but let me say, Mr. Lent, that because of the precarious
nature of transiting ships through the canal, I think the history of
the Commission and its predecessor agencies has shown it to be im-
portant that the pilots of the Commission or the canal company,
before it, take charge of the ships throughout the transit of the
canal.
Mr. LENT. I am not suggesting a change in that arrangement. I
understand and agree with you that the employees of the Panama
Canal Commission-pilots particularly-are probably the proper
personnel to escort these ships through the Panama Canal; but
could not the shipowner assume the responsibility, the liability for
any damages to the ship while it was under the navigational con-
trol of a Panama Canal pilot? It would seem to me similar to insur-
ance on my automobile. If my wife or my son or a friend drives my
car and has an accident, I am still covered.
So, who is at the wheel isn't necessarily the determinant of lia-
bility.
Mr. GIANELLI. I think you are right. I am not sure the ship-
owners would agree with your analysis there with respect to an
automobile. I think that is a subject which would be well to disuss