For sale by the Superintendent o

wullinton 25 D 

Anua

FEDERAL M

MARITIME 

O

Q 

UNITED STATES D

For sale by the Superintendent o

wullinton 25 D 
UNITED STATES D

SINCLAI

Wa

FEDERAL 

CLARENCE 

BEN H G

THOS E S

TAMES L 

MARITIME 

CLARENCE G MORS

WALTER C FORD D
LETTERS OF 

UNITED STATES DEPAR

Wa

To The Secretary of Commerc

FROM CAairman Federal Mari

trator

SUBJECT Annual Report for fis

I am submitting herewith the 

and Maritime Administration c

year ended June 30 1957

To the Congress

I have the honor to present th

time Board and Maritime Admi

merce for fiscal year 1957

CON

Fiscal Y

INTRODU

AID TO SHIP

Construction Differential Subsid

Federal Ship Mortgage and Loan 

Other Forms of Construction Ai

Operating Differential Subsid

Aid to Vessels Over 20 Years of 

Trade Routes 

SHIP OPERA

Demand

Cha

for Ocean Shippin

General Agency Activities 

Grain Storage 

Port

Sh

Developmen

Other Activities 

SHIP CONSTRUCTION AND REPA

Nuclear Merchant Ship Program 

Construction 

Conversions 

Technical Developments 

Building Propos

ShipRepair 

SHIPPING STUDIES AND REPOR

Special Studies 

Ship Cargo and Labor Data 

Labor Management Relati

MARITIME TRAINING 

United States Merchant Marine 

State Maritime Academies 

SHIP SALES AND TRANSFE

Ship Sales 

Transfers to Foreign Ownership 

PROPERTY

Shipyard s

AND SUPPLY 

Terminals

Wareh

and Reserve Training 

Material Control Inventory and 

Purchasing 

ADMINISTRATIVE MANAGEME

Program and Defense Planni

Personnel 

Organization and Methods 

FINAN

Security and Investigat

Financial Relationships With Co

Accounting

Audits

InternalAudits 

Insurance 

Notes

Claims

and Accounts Receivabl
MU

EXHIBITS

1 Balance SheetJune 3

2 Statement

195

of Operatio

3 Statement of Equity 

Years Ended June 3

4 Statement of Sources 

Ended June 30 19

NOTES To FINANCIAL STATEME

SCHEDULES

1 Statement of Operatio

Years Ended June 3

2 Statement of Operatio

Inception to June 30 

A Employment of United Stat

B Deliveries of New Mercha

C Summary

1957

of Operating Di

D Ships Approved for Transf

Flag fiscal Year 1

LEGAL

Legi

ACTIVITIES 

Cont

Litigation 

REGULATORY ACTIV

Conferences and Other Ag

FreiFore

Freight

Term

United States T

Freight Forwarders 

PROCEEDINGS BEFORE HEARIN

Final Decisions of the Bo

Recommended Decisions 

Pending Proc

INTERNATIONAL MARITIME A

MU

EXHIBITS

1 Balance SheetJune 3

2 Statement

195

of Operatio

3 Statement of Equity 

Years Ended June 3

4 Statement of Sources 

Ended June 30 19

NOTES To FINANCIAL STATEME

SCHEDULES

1 Statement of Operatio

Years Ended June 3

2 Statement of Operatio

Inception to June 30 

A Employment of United Stat

B Deliveries of New Mercha

C Summary

1957

of Operating Di

D Ships Approved for Transf

Flag fiscal Year 1

EF New Merchant Ship Fleets Construction of the Woon 

G Cash and Approved Secu

Special Reserve Funds o

Vi
FISCAL YE

Intr

Reorganization Plan No 21 

ished the United States Marit

Federal Maritime Board and th

partment of Commerce to pe

agency

The Federal Maritime Boar

pointed by the President by a

Senate The President design

Chairman of the Board who a l

istrator

The plan transferred to the 

tory functions of the United 

functions with respect to maki

contracts and with respect to c

minations antecedent thereto u

VIII and sections 301 708 8

Marine Act 1936 as amended

The Board in respect of the 

by the plan is independent of th

istering other functions trans

Board is guided by the general 

with respect to such functions 

of the subsidy functions transf

The Maritime Administratio

and execution of shipbuilding 

programs authorized by law 

terminations made by the Fed

tration carries out its functions 

the Secretary of Commerce

The Federal Maritime Boa

during fiscal year 1957 continu

complishment of their respons

legislation provides for the dev

can merchant marine sufficient 

merce and a substantial portion 

try capable of serving as a nav

and operated under the United 

States and composed of the b

types of vessels manned by a 
Principally these efforts inv

cerning the 1 planned co

so phased as to meet the Ns

2 chartering of Governme

private operators to furnish 

agriculture and industry in 

ment of new ship designs a

volving nuclear propulsion a

to assure continued technolo

modern American merchant 

differential and constructio

and mortgages and other for

by the Congress to effective

chant marine and 5 impro

the agency

In meeting the objectives 

BoardMaritime Administr

ciples of providing for max

the merchant marine with 

the shipping business and th

economic

Federal participation

and national

to

sec

th

trys maritime laws in an e

With respect to the ship 

tinued increase in the numb

struction or conversion in 

of this program was essentia

owned merchant marine ca

tion of the country scommer

of ship construction knowle

mobilization The progress 

following 1 at the end o

119 ships under constructio

States shipyards providing 

to the industry 2 contrac

negotiation with subsidized 

ment construction of some 2

mated construction cost of 

construction on June 30 1

In connection with barebo

time Board authorized the c

up to 223 Governmentowne

Fleet The Maritime Adm

located 138 Liberty and Vic

Americanflag operators T

previously chartered furnis

to agriculture and industry 

year In addition the cha

portation in United States f

2
sistent with the availability of 

able tonnages involved in the 

Agriculture and International 

goes financed under Export Im

maximum extent possible com

participation of United States 

of foreign aid cargoes as provi

and the exclusive requirements 

in the movement of cargoes fina

provided by Public Resolution 

With respect to ship design 

toward achieving a modern 

creased efficiency and economy 

and utilization of new ship a

was notable with respect to 

Maritime Administration of c

prototype cargo ships the C

one Pipeline tanker was under 

given by a number of Americ

variations of the Clipper Free

design in future construction 

grams or under pending app

aid 2 development of a num

operators under their replace

Government aid covering a num

or converted including carg

cargo and trailer ships 3 d

fications for the construction 

ship and 4 completion of t

of Liberty ships

The nuclear ship program 

year with the substantial comp

economic and technical applic

tablishment of the basic char

contract for the design develo

water reactor propulsion syst

awarding a contract for the 

marine engineering contract 

exclusive of the propulsion p

ability and capabilities of shi

close of the fiscal year plans 

nical engineering and scien

commencement of constructio

and its completion during the 

The current Liberty ship co

gram was nearing completion 

for completion in September 

installation of new propulsio

and gas turbines b installa

440403582
and c modification of hull 

ation studies of these ships 

regular North Atlantic serv

of the program were being m

of 15 knots compared with 

of ready upgrading if requ

ertytype ships now in the 

development of new types o

In the matter of administe

tiondifferential subsidy an

grams continued emphasis w

differential subsidy agreeme

ments of subsidized operator

mortgage and loan insuran

new operating differential co

These contracts phis contin

provide for the replacement 

at a total estimated construc

the end of the year negotiatio

six operators for the execut

contracts providing for the 

an estimated construction co

during the fiscal year 10 co

construction and mortgage lo

to private ship operators for 

vessels at a total estimated 

Relating to the foregoin

subsidy contract executed w

conversion of 1 Mariner carg

estimated construction cost o

the applications of 5 other s

cuted in fiscal year 1958 su

funds for construction aid 

estimated collective cost of 1

The Federal Maritime Boa

addition to administering the 

to devote undiminished effo

cluding those involving the 

general agency agreements 

serve fleets and the conduct 

Aid 

Construction differential 

During the fiscal year the F

rence of the Comptroller Ge

a settlement with the Americ

the Comptroller General sex

P
lowances granted that company 

of the SS Independence and SS 

of the four combination ships 

ACES This settlement prov

the United States of the sum of2752

of the United States in connec

the FOUR ACES and a full r

regarding the construction sub

with building of the SSs Lidep

The Federal Maritime Board 

structiondifferential subsidy c

Lines Inc covering the conver

combination passengercargo ve

of11885 000for operation in 

service

The Federal Maritime Board 

was anticipated that formal con

would be executed during the fis

cation of American President L

subsidy to aid in the constructio

class vessels at an estimated co

to be used in the company sR

services b agreed to pay cons

ship Co Inc to aid in building 

tic construction cost of 9 millio

terranean service c approved 

Lines Inc for construction aid 

estimated domestic cost of 1500

American Republics and Ameri

to pay construction differential 

Inc for reconstruction and reco

at an estimated total domestic c

West CoastFar East service

The Board rescinded its actio

payment of construction differ

structing and reconditioning e

States Lines Co

Related to the foregoing ther

time Board and accepted by th

construction differential subsid

East Line Inc was authorized 

of 456percent of the domestic c

type vessels covered in their con

in fiscal year 1953 The estima

1

to 882 000 as compared to the e

621 000 The American Bar

struction differential allowance 

Cost figures quoted in this section 

allowances if any
of the conversion of a Mar

covered in their construct

in fiscal year 1957 The est

to 70500 as compared 

11866 000 subsequently 

President Lines Ltd was a

allowance of 396 percent o

passenger ships the Presid

covered in their constructio

fiscal year 1956 The estim

285 000 as compared with 

466 500

The following applicati

were pending as of June 30 

for construction of 4 comb

b American Export Line

for operation on Line F c 

tion of 4 cargo vessels d 

struction of a transpacific l

for construction of 2 large 

transatlantic service f C

tion of 1 bulk drycargo ve

riers Corp for construction 

h Edison Steamship Co

vessel of Maritime design 

combination oil and bulk d

tion Co for construction o

sign k Ore Transport 

tankerore carrier 1 Pen

drycargo vessel of Maritim

Inc for conversion of SS 

trailer ship

Federal ship mortgage a

The Maritime Administra

contracts authorizing insur

made by banks and other l

listed and in the approxim

Banner Lines Inc a recon

loan of500 0 for the 

b College Point Dry Doc

106 50 c Eagle Carrie

and mortgage loan of78700

Terminal Transport Corp 

mortgage loan of7875 000

son Navigation Co a mortg

for

of the

the

SS

reconstruction

Matsoniai f

of

Te

th

6
Ocean Transportation Co a c

mortgage loan of 10500 0 f

Sea Transport Corp construct

and 10500 0respectively on 

ers i Coastwise Line a mor

struction of the SS Coast Progr

Corp a construction loan of315

000 for the construction of a ta

Of the title XI applications 

year the following applications 

in an inactive status Alaska St

Atlantic Steamship Corp Puer

Trainships Inc

The following title XI appl

1957 a American Eagle Tank

Hawaiian Steamship Co for 8 

sels c AmericanLiberty St

vessels d American Trading 

construction e Black Ball T

senger and auto ferry and rollon

port Port Jefferson Steamboa

g H B Cantor for 2 supe

Corp for 1 bulls dry cargo i 

cargo j Galapagos Inc for 

leum Carriers Corp for 1 tank

for 1 tanker m New London 

off ferries n Ocean Transpo

o Petrol Transportation Corp 

Inc for 1 tanker q Transe

r Transportation Utilities 

Trailer Ferry Inc for reconstru

t United Vintners Lines for 

Wide Tankers for 1 tanker an

additional coverage on the SS T

Other forms of construction 

As of June 30 1957 the follo

tradein allowances on old vesse

tion cost of new vessels America

against 4 new vessels America

against 4 new vessels MooreDlc

against 7 new vessels Ore Tran

new vessel

In view of the fact that the P

contracted for the building of 

accordance with the terms of it

provided for tradein allowance 

in and build contract was deemed 
As of June 30 1957 ba

nonsubsidized operators to

483 as of June 30 1956 in 

funds were established dur

made to such funds How

funds were withdrawn prio

in the funds during the fisc

drawals totaled 3827 165 

for purchase of vessels 2

tors for application to mort

sented a reduction in the am

of credit and 1341 200 w

application to construction 

In addition to mandatory 

year 1957 voluntary depos

were authorized in the tota

six operators As at the e

applications from five sub

voluntary deposits totaling 

Operating dij erentials

Operating differential su

Brazil Line Inc and Sea

on trade routes Nos 24 an

mutual consent and the ope

Moore McCormack Lines 

dized services Operation 

Lines Inc is being perform

operators

An operating differentia

can Banner Lines Inc to c

cargo vessel after complet

between New York and po

At the close of fiscal yea

ferential subsidy agreemen

nies T J McCarthy Stea

States Lines Co amendm

Ohlrich Steamship Co fo

Lakes to Europe Isbrand

World service eastbound 

trade routes Nos 13 29 

Lines Inc for operation o

trade route No 18 Matson 

route No 12 and Waterm

services

As of the close of this fis

in negotiations with Lykes 

Shipping Co Inc for ex
sidy agreements to become ef

termination of their current s

1957 These contracts when 

things for the replacement of 

53 and 14 ships respectively 

American Dlail Line Ltd as 

the company scurrent subsid

1960 and the execution of a ne

among other things would pr

over their existing replacemen

in progress in the extension o

viding for the replacement of 

requirements In addition c

plication of a States Steam

of the subsidized service of its 

acquiring additional subsidize

port Line sold contract and t

January 1 1958 which would 

over PTL scontract requirem

termination of their old contra

differential contract providin

Progress continued to be ma

ingdifferential subsidy rates 

the 520 rates applicable to the 

plete as of June 301957 all ra

through 1954 have been compl

net advance subsidy payments 

This amount represents paym

resumption of subsidized ope

calendar year 1956 and the fi

mary of operating subsidy co

Aid to vessels over 20 year

The Federal Maritime Boa

interest tinder section 605 b 

amended had authorized for

through issuance of formal or

subsidy on ships now over 20 y

prior to the delivery of their 

the Federal Maritime Board 

ship replacement provisions o

entered into by these compan

Boarcl in this connection are t
Name of operator 

Grace Line Inc S

S

S

S

S

S

S

S

S

S

S

S

S

Moore McCormack Lines Inc A

I

American President LinesLtd P

P

P

P

P

P

P

Trade routes

Continued progress was m

sentiality and United States 

eign trade routes as provide

chant Marine Act 1936 R

9passenger services and N

were first declared to be ess

tion trade route 33United 

viewed and declared to be e

United States Limited rev

Nos 17 24 and 29 resulti

requirements

Shi

Demand for ocean shipp

The fiscal year embraced 

activity with an increased 

foreign flag vessels Notabl

of coal for commercial acco

cipally under the foreignai

culture and the Internationa

creased tonnage requiremen

1956 resulting in the develo

vessels This was aggravate

of the Suez Canal in the fa

The Federal Maritime Bo

constant surveillance over t

necessary to alleviate the sho

10
charter rates as indicated und

Charters

Toward the end of the fiscal 

volume of shipments and increas

materialized resulting from exp

opening of the Suez Canal intro

sels and the seasonal slump in d

In compliance with the provisi

Congress the Maritime Adminis

portImport Bank on shipping a

der the bank sloan credits In 

were authorized to the exclusive 

States flag vessels as provided by 

participation in the cargo mov

cluded Japan France German

assistance was furnished other G

maintained with the shipping in

ticipation of United States pri

movements of cargo financed by t

Law 664 83d Congress

Charters

The Federal Maritime Board 

January 1957 held public heari

applications from Americanflag 

of Governmentowned dry cargo 

were to be utilized in the move

cargoes and other approved bulk 

ings the Board authorized the c

its findings that a the service

in the public interest b such 

served and c privately owned 

able for charter by private oper

reasonable rates for use in suc

trator subsequent to Board actio

type ships and entered into ba

ships with 27 Americanflag op

The operation of Government

those covered in the preceding p

tered increased from 22 to 151 

and forty of these ships includ

were in the offshore trade 4 in 

east coast intercoastal trade an

of cable used in laying a subm

Pacific coast and Alaska and H

gaged in hauls between South A

Rico In accordance with Publ

review was made of all bareboat 

44040558
under authority of the Me

and it was found that the 

The increased traffic act

market rates during the y

years The upward tende

by the allocation of additi

charter operation and by t

vices to other Government 

might justifiably be paid 

cargoes In the latter area 

charter rates for the severa

and fair and reasonable vo

bulk cargoes to the principa

fiscal year there was a con

due to the increasing availa

General agency activitie

Thirtythree general ag

mencement of fiscal year 1

ularly approved general a

agency operated ships in th

erations during the fiscal y

Military Sea Transportati

eration except for one inbou

by the Department of the 

Grain storage

On June 30 1956 there 

Libertys loaded with grain 

Corporation Department o

ing June 30 1957 28 light 

storage wheat additionall

of these were reloaded with 

grainladen ships at the var

53 million bushels of grain 

program in 1953 the reserv

approximately 115 million 

Port development

As an aid to industry i

other special purpose ship

pleted by contract a study 

ship Trainship and Conta

cludes engineering and desig

etc was made available to th

and favorable response

The ports of Ashland an

12
inspected at the request of loca

were held with them with respec

ports Additionally conference

port authorities and plans for 

commented upon in the light of 

Seaway

In cooperation with the Depa

neers for Rivers and Harbors s

No 7 The Port of Philadelph

City N J and Port Series No 

Ports on Delaware River Below 

on the ports of Boston San D

Tampa were in process at the e

Ship custody

At the close of the 1957 fisca

reserve fleet During the year 2

410 were withdrawn for a net d

table gives a breakdown of the s

Hudson River 147 

James River 339 

Wilmington 296 

Mobile 287 

The ship preservation progra

within the limitations of appr

100 percent of the basic layup 

and 68 percent of the year ssche

tion finished by the end of the fi

gram for the cathodic protection 

hulls was in operation at all res

Other activities

The acute tanker shortage cau

resulted in the withdrawal of 29 

signment to the Navy Departm

transferred and 12 transferred 

eight Maritime Administration

other Government agencies at t

of 23 dry cargo 15 tankers and 

Through the cooperation of t

programs were established to in

and seagoing personnel in defen

in damage control and firefightin

was made on studies relative to 

Safety of Life at Sea study H 

those toward the establishment 

ficers in radar observation
Ship Con

Nuclear merchant ship 

Steady progress was mad

Atomic Energy Commissio

tion of a nuclearpowered 

848 84th Congress The 

Atomic Energy Commissio

pressure components and 1

for ship construction shor

Pursuant to this legislat

dent the Maritime Admin

sion entered into agreemen

and the integration of each 

following reflects the prog

1 The basic charact

provide a length of 58

placement 21840 tons 

height and passenger 

2 A contract was e

the design and fabrica

propulsion system T

for the basic plant wi

and wiring outside th

propulsion plant comp

3 A cost contract w

the preparation of na

contract plans and sp

of the propulsion plant 

4 Surveys were ma

shipyards to construct 

5 Six outside desig

studies to determine 

various reactor conce

These studies were sub

cooled organic cooled 

critical reactor system

At the close of the fisc

accomplishment of objective

are the completion and ap

ship including its reacto

systems testing evaluat

uranium fuel awarding t

construction to assure comp

development of requiremen

by the American Bureau 

Health operational plans 

14
ing and discharge of active fu

of crew passengers and docksid

It is generally recognized that 

competitive with conventionally 

a pressurized water reactor sy

ment of nuclear powered merch

laboratory in which to learn and 

tical experience and provide 

merchant ships to follow Ho

assumption that competitive n

technically feasible and one of t

tions of atomic energy Conse

and the Atomic Energy Commi

velopment of other reactor syst

petitive nuclear power for merc

in fiscal year 1958 to develop en

lems of using the boiling water 

water systems in merchant shi

to plant optimization pitchand

ponent prototype development 

be economically utilized now for 

purpose vessels such as whalers

In addition to the above stud

gas cooled reactor with a closed

for eventual lowcost propulsive 

tively light weight To prove 

undertake work to resolve the 

scale closedcycle gas turbine a

the Maritime Administration 

jointly planned to solicit indu

contractor for the program w

second quarter of fiscal year 19

Construction

At the beginning of the fisca

under Jaritime Administratio

under construction for the Dep

and accepted by the Maritime A

rollonrolloff cargo vessel ori

1957 one cargo ship dock t

small cargo ships being constru

were scheduled for delivery in f

ships for Moore McCormack L

ships for Grace Line Inc bei

501 and 504 of the Merchant 

scheduled for delivery in fiscal 

During fiscal year 1957 a co

tion of one oil tanker for Gove

chant Marine Act of 1936
The ships being constru

tracts as of June 30 1957 a

Type Name 

03ST14a USNS Come

SST 2 23a USNS Pt Barrow 

TlMET29a USNS AIatna

TI MET 24a 

Chattahooche e

CIMEZ13s USNS Eltanin 

ClME213a USNS Mir ak 

ClME213a USNS Mize

P2S29a Passenger cargo 

P2S29a

P2S2lla

do

do

P2SZi1e

T5SBM2a

doOil tanker 

The Esso Shipping Co h

the Maritime Administrati

for a the payment of nati

on 2 and b payment of 

on the other 2 and tradein 

amount of5458 379 Two 

the fiscal year

At the beginning of the f

regard to the availability o

and ship components to su

programs Extensive confe

of shipgrade steel which 

provide sufficient productio

with the possible exception 

to meet the expanded ship

situation continues to exis

The delivery leadtime on m

as being 14 to 16 months h

priority orders and 16 to 

prospect of improvement in 

Final preparatory work 

cedure is in process for imp

This will embody the result

for ships shipyards and ma

their facilities and shipyard 

year bidders were put on no

tion that the Federal Maritim

tracts by allocation under t

A summary of new const

Conversions

The last of 4 Marinertyp

hem Steel Co Baltimore 

M
Round theWorld service and 

passengertype vessels for The O

Iron R Steel Co Portland Ore

contract for the conversion of one 

type vessel for American Banne

Shipbuilding Corp Pascagoul

in calendar year 1958

The Liberty ship conversion a

which funds were approved by 

663 was nearing completion T

SS Benjamin Chew MS Thom

were completed and the ships we

istration in July August and S

GTV William Patterson fourth 

gram was scheduled for comple

Although evaluation studies of 

their operation in regular Nort

operators indications were tha

being achieved in terms of a 

knots compared with a former s

of the ready upgrading and util

gency of some 1500 Libertyt

addition the program provided 

parison of new types of propul

handling equipment

The SS LaGuardia sold to 

quently acquired by Textron I

Matson Navigation Co during 

Congress were reconditioned 

fiscal year 1957 under the new 

respectively

Technical developments

Considerable efforts were dev

rine developments In the area 

conducted to develop a new des

will reduce their overall size 

tion by an increased number o

finements to existing designs 

feasibility of increasing the po

bine propulsion plant present

Ship William Patterson with 

weight and cost of the present 

Studies were conducted to de

damage control equipment and 

biological and chemical warfa

countermeasures were develope

The Maritime Administratio

ticipated in the technical act
portation Conference of th

tained effort to improve th

merchant marine

With assistance from H 

Ohio the Maritime Admin

ing study of the effects of 

on the shipping industry 

tion bearing on the design 

Great Lakes through the S

Contract plans and spec

time Administration cargo 

end of fiscal year 1956 and 

for which construction is 

include the cargo designs F

Clipper 10870 deadweigh

weight tons 18 knots an

16 knots Three of thes

architects under supervisio

by the Maritime Administr

Public Law 947 directed 

Communications Commiss

to investigate and report on 

automatic radiotelegraph c

cargo ships of the United S

tors The Maritime Admin

and in the preparation of a 

gress March 1 1957 Fur

munication equipment the

Sperry Gyroscope Co for 

Manufacturing Co for 396

in the Navy sArctic opera

radio sets were purchased f

cost of 55620 for placem

accordance with revised Coa

Building proposals

In view of the largescale 

operators and in an effort t

ship construction plans were 

be required by contract pro

engineers whose duties are to 

manufacture or substitution

were issued but contracts w

on the following building p

States Lines under its opera

of the SS America nearin

AmericanHawaiian Steams

or 10 single screw 18knot 

aid and c construction b

18
the Clover Carriers Corp of 1 to 

differential subsidy aid and Fede

dition pursuant to a memorandu

Geodetic Survey a ship was des

conception Bids were received 

abeyance pending supplemental 

Ship repair

The bareboat chartering prog

tion and repair of vessels in the r

efficiency and making them more 

gencies Under this program t

ships to ascertain the condition o

bareboat charterer b contracts 

time Administration on 111 of 

approximately agreement for recovery24 millionof this prov

a

for the account of the charterers 

time Administration for proprie

work

The emergency ship repair p

608 83d Congress was substant

The program within the limitati

of the Congress enabled 150 Na

of greater readiness in the event 

work for ship repair yards par

1956

During the fiscal year 1841 i

sidized repairs of the 301 slips o

of which were given full conditio

Repair summaries submitted by 

for subsidy eligibility and over 

was determined to be ineligible 

on 575 ships on which the Marit

were reviewed and where appro

that the vessels were maintaine

the Government sinterest Fif

cost of1291 000 for major re

agreements were reviewed for 

of cost

Shipping Stu

Special studies

Continued efforts were directe

and the preparation of numerou

before the Congress and the Fe

reports were also prepared for 

446403584
feuse Planning Board 

tional Petroleum Counc

the nationalization and 

tanker availability and r

tion andor on order

Ship cargo and labo

The processing of rep

domestic deep sea trades 

creased scale The increa

more than 51000 reports 

cargo ships and tankers 

was approximately 1100

foreignflag competition e

panies operating on 44 su

pared for use in calculatin

tistical data were also dev

operatingdifferential sub

the Federal Maritime Bo

There was continued th

of reports reflecting cargo 

and domestic trades fore

ices status and employme

of the merchant fleets of t

and under construction by 

world and deliveries of 

country in which built 

uous nature are those sho

The trend of decreasin

the number of shipboard 

operated ships over 1000 

30 1956 to 60700 on Jun

pable of constructing ship

53300 with the number o

for private account ship 

tinuing its upward trend f

Labor data tabulations 

ing Seafaring Employme

194656 various ports S

watchstanders Pay 19456 

Rates 1939 1945 and 1956 

tables Employer Contri

195056 Supporting data 

nished to the Bureau of La

and longshore wage studies

Labor management rela

Comparatively harmonio

negotiations were conducte

20
seafaring unions resulting in gen

merchant seaman However Atl

handicapped by union representa

CIO International Brotherhood o

ent International Longshoremen s

of the ILA for industrywide barg

in November 1956 effective in al

involving an estimated 58000 long

The Government was forced to e

visions of the TaftHartley Labo

day nostrike injunction perio

ployees and longshoremen in So

collective bargaining agreements 

junction longshoremen from Mai

for 10 days during February 195

renegotiated without developing 

Maritim

United States Merchant Mari

During the reporting period 

Academy completed its first ful

institution ender the provisions 

During this time efforts were dire

trative regiilations and procedu

Academy in accordance with the 

of the other service academies o

During the fiscal year there wa

7 Latin Americans enrolled in t

dred thirtythree cadets success

instruction 76 graduating in Fe

graduated in August 1951 Fut

rather than a semiannual basis 

marine officer licenses issued by 

third mates or third assistant e

received bachelor of science deg

ensigns in the United States N a

The 13th Congressional Boar

annual inspection was tentativel

following were designated as m

son 11ashington ex officio F

Lausche Ohio and William A 

Herbert C Bonner North Caro

Missouri T Ashton Thompson 

Lindley I3eckworth Texas and 

Pursuant to Public Lac 691 8

Advisor Board to the United S

held in March 1957 The Boa

composed of the following mem
Concordia College Joh

and Social Studies Mas

H Davis provost State 

School of Engineering 

Mercer chairman of the 

olds administrative vice 

held discussions with the 

tendent of the Academy 

and visits and otherwise 

reports

The Board expressed s

as a result of the Ninth A

28 1956 that annual g

desirable semiannual on

the matter of improving 

including leaves of absen

the faculty have been u

mittee arrangements ha

maintaining the Naval R

in very large measure a

be incorporated in legisl

self evaluation at least a 

tion by the Middle State

Schools in the spring of 

academies are being carrie

arrangement such as exist

should also be effected as s

with the United States Na

States Coast Guard Acad

proved will provide a m

lowance to the cadets In 

consideration be given to i

be an annual graduation o

to cadets to assume the re

ing their 1yearatsea tra

type ship and under the 

Academy sstaff

State maritime academ

The State Maritime Ac

and Hyannis Mass and 

Fort Schuyler N Y had 

status during the fiscal yea

were 220 graduates who re

officer licenses as third m

United States Coast Gua

missions as ensigns in the 

PA
Ships Sales 

Ship sales

A total of nine ships of the Ma

gate sum of 49189 71 to Unite

the foreign commerce of the Unite

of the Merchant Marine Act of 19

were sold to Pacific Far East Li

Lines Ltd 2 to Pacific Transp

Lines Co and 1 to American Ba

20 of the type previously sold 7 

1956 provided the Americanfla

ships of a speed essential to me

pletes the disposition of the 35 M

thorized by the Congress to mee

by the Korean emergency as foll

partment of the Navy and 29 sol

lion to the United States Treasur

Title to six T2 tankers previo

porations under the Merchant S

was revested in the United States 

direction for delivery and custody 

ministration In late 1956 the M

tankers after competitive biddin

Merchant Marine Act 1936 for t

The SS Panama a passenger 

The Panama Canal Company a 

was sold by the Maritime Admini

Merchant Marine Act of 1920 as 

to American President Lines Ltd As a result of the continuous s

17 overage former Army andor 

aged Liberty ship determined to 

or national defense purposes to w

under the Merchant Marine Act 

697 to the Government

Under the provisions of Publi

June 30 1955 5 small coastal car

sold for limited operation to Ph

pania Maritima and 2 ships to 

panyfor a total return of309

additional ClMAVltype carg

price of832644 to the Gover

coastwise trade under authority 

approved July 15 1954

Transfers to foreign owners

During the fiscal year the poli

fers of United States privately 
andor registry was revi

what more restrictive on 

Mitment for new cons

transfer conditions as to u

life of the ship 20 years 

tions as to subsequent sal

tions pertains to vessels o

of 1000 gross tons and 

policy

Appendix D summarize

9 andor 37 of the Shippin

eign ownership andor re

zens Of the total 1022 

tons such as tugs barges 

maining 148 ships were o

with this latter group an

Maritime Administration 

ships to other foreign nat

tions as those which gove

the total United Statesf

approved for transfer to 

approved for transfer in 

tonnage or rebuilding o

During the year two app

States privately owned shi

Fortysix charters of Un

were approved by the Ma

of afFreightment and voya

from 1 to 20 years

Prop

At the close of the fiscal y

during fiscal year 1958 o

personal property holding

survey will be conducted o

reserve training stations a

tained therein for the purp

property requiring retenti

tions b property suscep

Government agencies or d

pairs or replacements to r

in the preservation and cus

Shipyards

The maintenance and se

Governmentowned reserve 

and Alameda Calif and 

shipyard the lease of appro

24
Carolina State Ports Authority h

structed thereon a 3berth marg

large warehouse and a 200 0ga

portions of this shipyard continu

Departments of the Army and N

Corps of Engineers for the purpos

ment A contract was awarded 

piers and shipways At the Richmond shipyard lice

the housing of the Contra Costa 

of its permanent campus for the 

Travis Air Force Base for instal

American Red Cross and Public 

of administrative equipment th

for utilities furnished and Contr

the buildings used by it The le

to the Kaiser Aircraft S Electro

craft Co Inc was continued 

granted to the Department of th

a building for electronics trainin

istration being reimbursed for u

At Alameda Reserve Shipyard 

der permit berths its ships Pione

imbursement to Maritime Admi

the fiscal year a portion of a b

Pacific Coast Steel Corp for off

Encinal Terminals for the stora

At the Vancouver shipyard t

Administration and the Departm

the Air Force permit covering 

and some 35 buildings for the st

material The Administration 

the permittees have assumed m

within their control A contra

deteriorated timber shipways a

largely completed

Terminals and reserve train

The major portion of the No

Departments of the Army and 

ministration These agencies 

ment of commercial ocean cargo

operating contract supervised b

Hoboken N J terminal is und

York Authority During the y

A which replaces piers 1 and 

and construction program at a c

the lease has been in effect
The status of the reser

and security programs are 

ing Station and the Air 

tinued the control occup

tively Bay Training Station and 

Warehouses

The Administration cont

owned warehouses at Kea

New Orleans La and Ric

facilities for the storage o

tional emergency for the 

defense reserve fleets and 

vessels in such emergency 

house inventories exclusive 

taled 37752 898 a decreas

Material control inven

There were 445 ship and 

ventory certificates for cons

of 945 016 as accounts rec

Certificates of overages and 

of 74854 as accounts receiv

At the beginning of the y

for determination as to disp

reported from offsite locatio

regated and processed for u

there remained 604 243 at t

Surplus and excess person

ing a reported acquisition v

Maritime Administration T

foreign countries of propert

received foreign currencies 

an acquisition value of 195

market in the following ma

cated sold 1518 97 tran

214 88 donated for hea

172 660abandoned or destr

the above sales and transfer

249 950

Passenger ship equipmen

under authority of Private L

43747 administrative and 

with the exchange sales prov

ministrative Services Act o

ment 18034 for application agai

26
Sunken ships which had prev

constructive total losses ere so

A volume of 6458 cubic feet 

cubic feet of records were trans

leasing 1456 file cabinets and un

and releasing over 8500 square 

Purchasing

iZaterials supplies equipme

maintenance and operation of 

and training vessels and for t

of the Administration pu

Iu coordination with Depar

ment planning for ship constru

shipyard mobilization cmnpone

tion agreemuents ascl renenals 

fiscal year 195 There were 3

ill these agreements During th

ferences with industry official

capacity of industry and discus

schedules

Administra

Program and defense plan

Planning was directed to m

country smerchant nnarine du

require eats of future years 

the continued efforts toward th

shipbuilding progr nu throug

ferential subsidy contracts pr

placcnlents and b the esta

development programs to assu

ent and inehestre the deve

mn rnt

a

sv tenus and techno

anricpel ofnerchanT sh

Mobilization planning proj

year were a development 

Of ship repair facilities durin

Department of Defense and 

duction of two documents by 

uncles the cochairmansllip o

and the Deputy Conunande

covering ship requirements 

gency conditions c re

program based upon Joint C

of maritime mobilization m

cooperation with the Depart

446403 6SB
procedures to be followed b

to ensure It rapid and smoo

The Maritime Administr

favorable action to the Offi

tions for necessity certificate

bxs purposes as provided u

Code The applications co

of i2 ships at aggregate es

38 tankers 14 rollonrollo

Personnel

Ben IL Guill of Texas 

Board was reappointed by 

consent of the Senate as a 

for a term of 4 years expir

The total number of perso

istration on June 30 1957 w

under that reported for Ju

reduction resulted from the 

program

Organization and nzetlao

In the interest of providin

rvorlc programs during tile 

effected as were necessary re

tions The principal organ

tion of the Office of the Gene

zational entities for legal ma

is distinguished from couc

lishment of a Nuclear Proje

the Maritime Administrator 

of nuclear propulsion to mer

During the East year there 

number of our activities in

purchasing methods and pra

Marine Academy 2 policie

at the Academy 3 office 

overall Maritime Administra

cies and practices and 5 

fro activities of the agency

Security and investigation

The security program with 

the Maritime Administration 

provisions of Executive Orde

advice was given on the sec

Of ownership of vessels fore

28
proval of the Maritime Ad

operators of mortgaged vesse

Investigation continued th

certain purchasers of ships 

1946 as amended qualified a

these and prior investigation

cash settlements and 147 905 

ernment In addition invest

alleged charters of United St

time Administration approva

through mitigation of forfeit

Thirtyfour regulatory in

activities of freight forward

alleged rebates on freight 

Financial relationships w

Activities in connection wi

ments and the obtaining o

having contracts with the Fe

Administration reached the 

vessels under the Merchant S

plished Directly related fin

tion and analysis of corporat

the review and approval of 

to new ship construction 

contractors

These increased financial a

resulted largely from applic

gage insurance under the pr

Act 1936 as amended and 

build transactions These a

of financial statements subm

gages on warbuilt ships p

charter ships 3 act as su

Administration 4 serve 

prime shipbuilding contract

Accounting

Accounting operations we

accordance with principles 

troller General of the Unite

disclosure of financial result

ment proposes effective ac

accounting results and nec

practices and suitable integ
ury Department A change 

the year with respect to mate

portion of the inventories h

preparation of financial state

assets Mobilization Invento

inventories represent materia

National Defense Reserve Fle

by the Maritime Administra

statements of the Federal M

tration including three revolv

and schedules following the te

On Jute 30 1957 there rem

Administration agents with r

reached as to settlement of t

the 51 agents under National S

ing in 1951 37 were inactive a

of the inactive agents have be

been executed with 9 the acco

are inn the process of being clo

for any length of time

Audits

The principal audit activiti

subsidy agreements bareboat 

reconversion and repair cont

subsidy agreements include th

subsidized operators and the a

for operating differential su

demnity insurance expense au

payment up to 90 percent of 

through the calendar year 195

of annual subsidy accountings 

and indemnity expense if invo

10 percent of accrued subsidy 

with respect to 4 subsidized 

and repair contracts are bein

tinder bareboat charter agree

pending litigation with most o

of 404 existing on June 0 1

taling 551 have been added a

workload of 367 audits on tun

the Government as a result of 

amounted to 1406 81

Appendix G attached sets 

statutory capital and special 

gating 12305 89 and 9031

of the fiscal year such balan

755 501 respectively

In addition to mandatory 

M
Administrator subsidized op

deposits into statutory reserv

tagdeferred basis from profits 

ing the fiscal year 1957 app

were approved for 6 operato

applications of 5 operators t

close of the fiscal year

Internal audits

Internal audits of the finan

conducted on a continuing ba

Administration ssystem of in

in addition to the performanc

special examinations were ma

ential subsidy determination

relating to warehousing activ

Insurance

A new contract to furnis

demnity risks was awarded a

tinental Insurance Co Ma

York effective April 1 19

agents of the National Shipp

portation Service program

During fiscal year 1957 th

der the recapture provisions 

insurance agreement a total 

protection and indemnity un

the settlement of outstandin

representing the minimum 

tingency The hull underw

last outstanding case and the 

hull insurance agreement w

61294 02 representing 470

and 13544 02from hull un

Under the Maritime Adm

marine and war risk insuran

continued to be assumed on 

seamen insurance remained 

contract operated tankers 

this arrangement the net pr

after considering approxim

pending claims

In accordance with auth

Marine Act of 1936 the Mar

write excess legal liability 

tween the Department of th

which coverage could not be 
generally prohibitive rates U

provided that the Department 

time Administration for any lo

rangement no claim has been 

Under the standby war risk 

Title XII Merchant Marine A

insurance binders were issued 

outstanding were as follows 0

tion and indemnity and 892 w

ception of the program net bi

304 687 were received and a to

incurred of which 101 85 was 

The Maritime Administratio

the collection of monthly premiu

underwritten as authorized und

vised published in the Federa

inception of the program to Ju

policies had been issued and pre

In accordance with its insu

Maritime Administration app

thereof generally on an annua

mercial markets by mortgagors 

in the following amounts

Kind of Insurance 

Notes and accounts receiva

Of the balance of notes and 

totaling approximately 15 mill

represents items on which active 

remainder of the balance was m

be collected at the time of final 

Department of Justice notes ac

exclusive of mortgage loan no

settled upon completion of shi

claim or litigation status and a

Shipping Authority general a

fiscal year totaling approxima

slightly less than 1 percent was 

ous debtors exclusive of other 

the year

Claims

On June 301957 there were o

unlitigated claims having a val

32
ernment b 300 unlitigate

against the Government c 

12558 425in favor of the Go

for litigation and d 505 c

293 against the Government 

tion The following reflects 

Act during fiscal year 1957 

were settled in favor of the 

upon which 1093 26 was 

ment for 104 259

Leg

In addition to the specific 

ices and opinions were furni

Maritime Administrator ot

ous operating and administ

with the legal aspects or p

Legislation

Testimony statements o

the Secretary of Commerce 

on maritime legislation ena

Defense Department to furn

ship companies Departme

fiscal year ending June 80 

the Navy to sell degaussin

States flag merchant ships 

of December 2 1942 for e

States and extension of wa

of the United States

Representatives of the M

Maritime Board testified a

transfer of vessels foreign t

reserve fleet vessels and on 

reports were prepared and 

of the Budget on 135 bills 

tion files were maintained o

ined A number of specia

analyses were prepared in

ment for earnings of uns

and investment of reserve f

stocks under provisions of 

Contracts

A voluminous number o

ments were executed inclu

sidy contracts These in
preparation for the construction 

ship 14 contracts of ship constr

9 commitments to insure mortg

version of the Carib Queen to a 

to passengercargo vessels and a 

construction of 6 tankers and a 

construction of the SS Leilan

Matsonia to a passenger ship 1 

subsidy agreement charter agr

Mariner SS SeliuyZer Otis Blan

contracts bills of sale and mort

under the provisions of the 1936 

tional use under the 1936 act 5 

companies under the provisions 

ClMAVl type ships to the 

Law 496 83d Congress and 6 

under the 1936 act construction 

conversion of 1 Mariner to a pass

tion of the SS President Wilson 

Considerable additional efforts 

aspects related thereto were eng

velopment of proposed general 

tial vessel construction and conv

revisions to the standard portio

agreements c revision of the 

sarily employed in the busines

contracts d preparation of a 

of ship sales adjustment contr

ferences relative to pending appl

under other sections of this repo

Litigation

A considerable amount of p

claims against the Government 

of 1946 During the fiscal yea

Court of Claims involving refun

postwar charters of warbuilt v

year 2 cases brought in the Cou

were pending in the district cou

appeal to the Circuit Court of A

favorable to the United States 

respect to litigation involving th

tration scomputation of charter 

believed that while an estimated 

at the beginning of the fiscal yea

in the ultimate settlement of thes

past year are upheld in the pe

agency had an estimated 4 millio

charter hire

34
The Supreme Court of th

ment in the case of United 

The Court held that the Ic

British Ministry of War T

ingly there are now being 

ministration statements of 

profits for payment to clai

In addition to the foreg

year the following categori

Ship Sales Act of 1946 in 

chasers for alleged class d

features claims covering 

ground of the invalidity of 

5 suits involving 10 ships 

the issue of whether the M

tain payments or promises 

transferring vessels to fore

totaling 637 360 plus int

agency to charge the floor p

unadjusted statutory sales p

to 197 843 which prima

payments 21 cases in this 

in process of settlement a

Under the 1946 act this a

buyers for desirable feature

referred to the Department 

In the area of just comp

with a judgment in this cat

SDNY in an amount tota

12 years on claims of the A

The number of cases in

time claims of longshorem

istration operations was 

decrease in the enormous p

ministration as successor 

tion initially faced under 

shipping companies

The following court deci

an effect upon claims litig

the Court of Claims which 

be added to the floor price 

that the Government sop

was an expert one and p

courts for possible arbitra

evidence b the decision 

United States v Natioiaa7 

burgh in which the Unite

the libelants were entitled 

mately 3 million for six v
of their crews but held for t

the seventh vessel the Hai Hs

seized by the crew The pol

but excluded loss caused by ca

had been sold by the Maritime 

of China which executed mo

Government The crews of th

munists in January 1950 ran 

them for the Communist Gover

the shipowners sailingorders 

Hai Hsuan before the High 

assistance was rendered to 

prosecution of the case

In addition to the forego

involving court review of th

Federal Maritime Board in th

With respect to the regulato

in addition to matters of litiga

report five proceedings in rev

dual rates port equalization pr

carriers In Pacific Far East 

States Court of Appeals for 

order of the Federal Maritim

practices and in AssociatedP

dismissed a petition to review a 

under section 15 of the Ship

United States the same court 

order approving a dual rate sy

the opinion of the court is illeg

Court of the United States gra

of certiorari and the case was p

at the close of the fiscal year 

abeyance the case of Ezra Taf

involves the legality of the du

Court s decision in the Isbrand

There was also pending at th

Canadian Shipping Co Ltd v 

States Court of Appeals for th

a Board order limiting the sco

In connection with the sub

United States District Court f

of Isbrandtsen v United State

judgment and injunctive relie

differential subsidy to America

Regulato

During the fiscal year 1957 s

due in a large measure to increa

and port delays in some trade

36
ocean freight rate increases 

the carriers revenues been 

cargo available for shipmen

end of the year cargo offer

falling off and indications w

ended However the increa

that carriers in a number o

process of adjusting declini

costs Uuder such circumst

darity which the steamship 

a general freight market co

trades A strong conferenc

stable but reasonable is con

to the maintenance of a stro

the Federal Maritime Boar

rate problem of steamship 

permanent solution in the fa

and in this connection has 

Court for review of the d

District of Columbia holdin

Atlantic and Gulf Freight 

14 Third Shipping Act 

that a wider distribution o

conduct of trade and with 

lines and conferences in the 

their freight tariffs will be 

either free or upon payme

number of conferences alre

and the Board is hopeful t

steps to achieve the desired 

Conferences and other a

The Federal Maritime 

agreement modifications a

the significant agreements 

ference agreements coverin

military and civilian pers

tobacco from Greece Tur

general cargo from Hawa

ments c 3 terminal a

foreign freight forwarde

between Pacific coast forwa

sound ethical and honora

selves and between themselv

water and e an agreeme

to Atlantic and Gulf ports 

ity in the rate structure in t

The Board on its own 

respect to the status of exp
vessel carriers and the lawfu

15 Shipping Act 1916 in w

parties The purpose of the 

such carriers are entitled to t

if not and a need for such a

legislation may be sought

Freight foreign

A total of 2884 rate filings 

foreign trade of the United 

increase of nearly 4000 over t

were made for ambiguities in 

which lead to improper rate 

criminatory rates and conditio

There were increases in freig

in most trades with increased 

thereof

The closing of the Suez C

alternate routing by those ca

Canal causing increased ope

increases of 15 to 20 percent 

or were substantially reduced 

the latter half of the fiscal yea

The Federal Maritime Bo

investigation with respect to a 

transported from the United S

of absorption or equalization o

with the transportation by w

Pacific to Far East and west c

Freight United States Te

Freight and passenger rate 

riers filed tariffs embracing 27 

the water transportation of ho

highway motor carriers betwee

Territories Upon showings o

special permission application

on less than statutory notice

Carriers in the trade between 

Hawaii filed new tariffs to be

flecting increases ranging from 

rates The Board instituted a

such rates suspended same u

apparent financial needs autho

increases amounting to 72 perc

its findings in such proceeding

The Atlantic and GulfPue

to become effective January 5 

38
ranging from 15 to 125 perce

Board on its own motion i

fulness of such rates and a

percent of the then current r

per 100 pounds pending its 

agreement by the carriers t

rates collected in excess of t

January 9 to May51957

Terminals

A total of 2033 tariff sch

compliance with formal ru

court decisions and shipping 

The Board on its own m

termine whether the charge

operators at Atlantic and G

the meaning of Section 17 

of Section 15 Shipping A

rulemaking proceeding for 

nitions of terminal services 

business of furnishing whar

facilities in connection with 

and Gulf ports Further t

termine a whether the ra

forth in a tariff adopted b

and unloading waterborne f

detrimental to the commerc

practices resulting from the 

of Section 17 Shipping Ac

of the agreement of said ter

gation in the tariff of rule

the loading andor unloadin

terminals in the port of Ne

operators of said piers or 

Sections 15 16 and 17 Ship

The Board granted petiti

ciation for reargument and 

in the proceeding involving 

west ports but only for the 

held that terminal charges 

was to bear them under the c

Freight forwarders

Certificates of registratio

certificates of 75 registrants 

registrants holding certifica

Twentyone informal compl

were handled During the 
were revoked with respect to 

movement of Government ca

statement of policy was issued 

istration would continue to p

forwarders to other Governm

550 forwarders in the list at 

Significant among the freig

proval was an agreement am

for the creation of a conferen

a means of establishing charg

warders in connection with s

York and to foster sound eth

tices between themselves and 

common carriers by water 

to the Pacific coast forwarde

warders approved by the Bo

Investigation of forwarders 

shippers or who have been oth

was continued Four cases 

docketed for formal hearing a

of preparation

The Federal Maritime Boa

regulations under General Ord

of freight forwarders for co

paring these rules and regulat

the recommendations made b

Marine and Fisheries in its rep

forwarders and brokers dated 

developed through the Board s

Proceedings Bef

At the beginning of the fisca

ings were pending During t

subsidy and 16 charter or misc

a total of 59 cases The exami

27 recommended andor initia

ministrator heard oral argume

in 27 cases Final orders were 

trator in 11 cases without heari

Final decisions of the Boar

Docket No 723 Portland Orego

bound Conference dmerican Hatoa

steamship services found inadequa

Sound direct to Philippines but su

proposed monthly direct service E

special needs of shippers when dire

report and order modified to accord 

ME
Docket No 758 American U

Conference and Member Lines 

15 Shipping Act 1916 in failing 

ment prohibiting payment of brok

N Y to Rio de Janeiro Brazi

brokerage was not earned by co

an indirect rebate to the consig

1916 There was pending before 

Columbia a suit for review of the 

Docket No 767Agreement a

Coast European Conference R

of brokerage to any broker who 

conference line competitor found 

carriers and shippers and detrim

Docket No 771 Banana Dist

No 775 Arthur Schwartz v Grac

carrier of bananas and the cont

shippers to the exclusion of all 

violation of Sections 14 and 16 

ments for 2year periods under 

prorated among existing shippe

veners would be consistent 

discriminatory

Docket No 772 United States 

v American Union Transport 

Transport Inc v United States 

American Union Transport Inc 

between United States North At

FbIBF No 1 failed to reflect th

Section 18 Shipping Act 1916 

Alleged agreement under Sectio

Docket No 790Encinal Term

et al Conference action preven

ports at the same rates as San F

205 Merchant Marine Act 1936

Docket No 792 Agreement 

MembershipPacific Coast Euro

dition on admission to conferen

litigation before the Board in w

of conference found to be a ne

effectuated prior to approval in 

Docket No 552American 

sion Under Sections 805 a an

Its Transpacific Vessels at Ha

Line IncApplication for Per

rive Act 1936 To Call Its Trans

Lines withdrew its application 

East Line Inc to carry cargoe

fornia Oregon and Washingto

cargo vessels would result in u

clusively in the coastwise or in

the objects and policy of the M

There was pending before the U

a suit for review of the Board sa

Docket No 556States Ste

Differential Subsidy in the U 

605 c Merchant Marine Act 

of an operating differential sub

operation of cargo vessels bewee

west and Far East
The Federal Maritime Board r

to charter Governmentowned ves

findings and certifications to the 

Law 591 Slat Congress that the 

that such services were not ade

United Statesflag vessels were no

on reasonable conditions and at 

Docket No M69Marine Transp

boat Charter GovernmentOwned 

charter of 87 dry cargo vessels fo

International Cooperation Admin

cargoes Docket No M69 Sub 

to Bareboat Charter Two VictoryTy

from the Pacific Northwest to Pa

M69 Sub 2Pacific Far East 

Charter Vessels for Carriage of B

Others for 30 vessels for carriag

cargoes for foreign aid and othe

trade Docket No M69 Sub 3

cations to Bareboat Charter Ves

Bulk Cargoes not to exceed 40 vesse

cargoes outbound for aid program

ping DwApplication to Charte

Carriage of American Coal for u

American produced coal and other 

M71Grace Line Inc Applicatio

for Operation on Trade Route No 2

Company Inc etal Applications 

for use in worldwide bulk comm

coal to foreign ports and other bul

CompanyApplication to Bareboat 

for Operation on Trade Routes N

Steamship Co Inc etaApplicat

for Operation in Berth Services 

cation to Charter One Government

year between California Pacific 

Docket No M76Terminal Steam

boat Charter One LibertyType D

for carrying sulfur from United S

in the Pacific Northwest and lumb

ports Docket No M77 Sub 1

boat Charter 8 WarBuilt DryCar

in berth services AtlanticGulfInd

Persian Gulf Docket NoM78Grac

Charter DryCargo Vessels Vesse

N3SA2 type for employment in 

Great Lakes and the Caribbean are

Europe Docket No M79Grace 

DryCargo Vessel application to s

Line B Trade Route 25 for unsub

Docket No M77Prudential Ste

Bareboat Charter DryCargo Ves

Steamship Co Mathiasen Steamsh

sippi Shipping Co Inc were wi

record established that under ch

additional ships and the pending a

Recommended decisions of 

Docket No 785 D J Roach I

Commission and Cargill Inc Em

M
as the sole supplier of labor for 

nal facility in the port of Albany 

15 16 1 and 17 Shipping Ac

legally injured and not entitled 

Docket No 788 A8sociated B

Company et al Docket No 796 

pany et al and Docket No 79In

the City of Oakland and Encinal 

Encinal Terminals and MatcinaZ 

consolidated for hearing and rep

Navigation Co and Encinal Term

ment between Encinal Terminals 

Howard Terminals and port of O

carried out in whole or in part 

Section 15 Shipping Act 1916 

Act 1916 as amended not show

Docket No 793 Alaska Freig

Docket No 793 Sub 1Alaska 

and Southbound Rates Tariff 

violative except in two partic

Act 1916

Docket No 795 Inthe Matte

Lakes BordeauxHamburg Rang

Section 236 3 of General Order 

of the Great Lakes BordeauxHa

an exclusive patronage contractn

Section 15 Shipping Act 191

between shippers and carriers 

States

Docket No 808 Pacific Coa

Increase in Rates General rat

trades found not to be unlawf

pineapple juice from Hawaii to t

Docket No SteilAmerican P

CoAgreement Apportionmen

Continuation by these two Unit

ment providing for apportionme

destined to United States Atlan

purposes policies or provisions 

Pending proceedings

At the close of the fiscal yea

22 were initiated on the Fede

mainder were instituted by con

steamship operators and others

Internatio

The eighth meeting of th

the North Atlantic Treaty 

during October 1956 The 

representative on the Plan

meeting which was attend

NATO governments The 

to evaluate international m

and to make recommendatio
Maritime Administration wa

meetings held in London in F

Administrator as Washington 

ing of the Senior Civil Emer

held in Paris January 1957

The Maritime Administrat

ment of State and other intere

in the preparation of United 

included on the agenda of the 

mission of the United Nations 

A member of the staff was 

sentative on an Ad Hoc Comm

system of freight and insuranc

This committee set up by the 

Council in November 1955 c

issued a report with recomm

member governments of the co

A Technical Maritime Con

September 1956 under the au

ganization to consider recomm

rious matters affecting seame

which the agency was represe

fields of Government labor an

The Maritime Administratio

Department of State in provid

grams for foreign nationals 

Nations fellows or trainees of 

istration Programs were dev

dustry to provide the best po

responsible for maritime polic

national governments In add

with the Department of State 

ments on foreign actions deeme

States shipping

M
FINANCIA
W

tLU

C

FA

0

M

0

M
u

m

eeq 

g 

2

arg
FEDERAL MARITIME BO

DEPAR

Statement of Operations f

CURRENT YEAR OPERATIONS 

Operating activities

Revcnuas and reimbursements

Operations of National Shippi

Chartering of vessels to others 

in operations of National Sh

Maintenance of reserve fleet ve

Maritime training program 

OpemLOn of warehouses

Maintenance 

of reserve shipya

Total revenues and reimbu

Costs and expenses

Operations of National Shippi

Chartering of vessels to others 

in operations of National Sh

Maintenance of reserve fleet ve

Maritime training program 

Operation of warehouse

Maintenance of reserve shi

Total costs and expenses 

Net rite and expenses income

Operations of National Shippin

Chartering of vessels to others 

in operations of National Sh

Maintenance of reserve fleet ve

Maritime training protonm 

Operation ofmabouse

Maintenance of reserve shipya

Total net costs and expens

Direct subsidies and cost of national de

Estimated operating differential su

Adjustment of estimated recaptura

differential subsidies

Cost st of national naion defensefeatua

e

Excess of recorded cast of vessels sold ov

and abandoned 

Administrative expenses amount alloc

Cost of repairing reserve fleetve

Other income and adjustments inca

Interest earned on notes and mortga

Inventory and other property adjus

Loss on sale of surplus material and 

Loss on fixed assets other than vess

Net income from War Risk Insuran

Premiums and fees on insured ship 

Miscellaneous 

Net cost of current year operation

ADIUSTMENTS APPLICABLE TO PRIOR YEAR

Not charges arum from adjustments a

to World War IIacti

Participation in protso World War I

NET COST OF OPERATIONS note 4 

See are a on schedule 1

e Includes reconstruction differential subs

The notes to financial statem

48
FEDERAL MARITIME BOAR

DEPARTM

Statement of Equity of the Unit

June 

BALANCE BEGINNING OF

2 vessels transle

r 1957 and 6 vess

nears to Babok

Let unds apprOJlriah lbligations incur

nn Pnor to Janu

ials and supphe

Department of

ahm exclusive c

956 which were I

at obligations frt

d received from

d toward the co

bent Marine Acad

vessels transferred 

years

year1

cost of956 12 vessels transferred to 

year 1957 and 45 vessels in fisc

cost of 5 vessels transferred 

loans receivable transferred to 

sf sbfp sales in foreign areas 

BALANCE CLOSE OF
FEDERAL MARITIME BOA

DEPARTM

Statement of Sources and Appli

SOURCES Funds appropriated by the Congress 

Proceeds from the sale of vessels owned 

Collections on mortgage loans re

Funds provided by the Secrets of the 

against funds of the War Shipplug Adm

Funds provided from lapsed appropriatio

Proceeds from sale of Seed assets other th

Materials supplies and accounts receiv

agenciesne

Contributions received for construction o

Total fundsprovid

APPLICATION

Net cost of operations per Statement Of 

Items Considered in net cost of operat

Loss on sale of vessels 

Loss on fixed assets other than ve

Loss from adjustment of vessel sa

Payments into General FundloansUre ei Tre

Funds 

Expenditures applied tor mortgage vessels owned and 

Expendf unde

Expenditures Expenditures for for land mobilizationinventori

and site developm

struction in progress 

Proceeds of ship sales In foreign areas dep

Unobligated balance of appropriations tra

Increase in working Capital during the ye

Total funds applied

Summary of Ch

ASSETS Cash 

Accrued Notes andinterest accounts receivable 

Agentsadvances 

Material

Other asset

and

s

supplies 

Total 

LTATILIT1Ea Accounts payable and other liabilities

Reserves

Net untermfnated

WORKING OAPITA

Increase in working capital

50
FEDERAL MARITIME BOAR

DEPARTM

Notes to Financial Stat

The balance sheets and the state

e accounts of certain steamship 

mmunder General Agenc agreemen

rIIA heen fo

the followinSamounts with respect o

or before that date

Domestic 

Foreign 

Total 

3 Inventories of materials and supp

sent cost or estimated cost to the A

physical condition of the inventories in 

policy was made during the current f

The

and it June mu
FEDERAL MARITIME BOA

DEPARTM

Statement of Operations of Natio

June 

LessReimbursement of vessel reactivation 

Reimbursement of vessel deactivation 

Miscellaneous Income 

Net cost of norodupping operations 

ADMINISTRATIyE EYPENSES

NET INIR ELow FRou OPERATIONS 

o Excludes3840 421transferred to General 

determined to have been erroneously deposite

years 1952 to 1956

It is believed that a substantial Portion of 

52

SMITING OPERATIONS 

Vessels operated by general agents

Terminated voyage results termina

Revenue

Expenses 

Gross profit from vessel opera

Chartering of vessels to other

Total gross income from shipping opera

NONSHIPPINO OPERATIONS

Vessel reactivLion Costs 

Vessel deactivation costs expense ofresto

Miscellaneous expenses 

LessReimbursement of vessel reactivation 

Reimbursement of vessel deactivation 

Miscellaneous Income 

Net cost of norodupping operations 

ADMINISTRATIyE EYPENSES

NET INIR ELow FRou OPERATIONS 

o Excludes3840 421transferred to General 

determined to have been erroneously deposite

years 1952 to 1956

It is believed that a substantial Portion of 

52
FEDERAL MARITIME BOARD 

DEPARTME

Statement of Operations of Natio

Ju

Internatio

Cooperat

Total Ad7ninalra

SnIPPINO OPERA

TIONS Revenue 436 52 62 19

42

Expenses 357 189 56 178440

Gross income

from ship

ping opera

throw 79337 04 2

3502

NoNsmrPlNu OPERATIONS Vessel reictiva ticn costs 140 669 716 78 20

Vessel deactiva

tion costs ex

pense of rester

in vessels to

the reserve

fleet 16812 327 794

59

Miscellaneous expenses 2386 622 2

0

159 888 665 86 41

LESSReimbursement

of vessel to

activation costs 78680 302 41057

Reimbursement

of vessel deac

tivationcosts 8420 533 

Nonslimping income X15 839 595 717

31

102 010 430 55 31

Net cost mcome

of nonship

ping tons opera 56948 235 3

0773

22 388 812 10 72

ADMINISTRATIVE EXPENSES tenta

tive proration 1064 607 3164 

NET INCOUE loss

Fruit OPERA

recent 12224 e1

Vessel reactivation costs applicable to vesse

chargeable to charterers See note to sched

The acute tanker shortage caused by the c

tankers that were transferred to the Navy Depa

the Navy Department reimburses the Maritim

costs4826 713for each month the tankers are 

or the tankers returned to the Infuse Admin

Credits for materials and equipment unnov

no rshipping mcome at standard catalog prices 

post tiou

a Net loss from operations for account of Int

program being terminated on such an Scaly da

to amortize Shin ieactn ation and other expen
Ul Li

a

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Summary ofOperatinDifferentia

Amencan Banner Lines Int

American Export Lines Inc 

American Mail Line Ltd 

American President Lines Ltd 

Bloomfield Steamship Co 

Farrell Lines Inc 

Grace Line Inc 

Gulf R So American Steamship Co Inc 

Lykes Bros Steamship Co Inc 

Mississippi Shipping Co Inc 

Moore McCormack Lines Inc 

The Oceamc Steamship Co 

Pacific Per East Line Inn 

Pacific Transport Lines Inc 

United States Lines Co

Cargo Service 

SS AMPRICA 

S6 UNITED STATES 

1 One Mariner vessel now being converted t

first half of 1958 upon delivery by the shipbui

A

Ships Approved for Transfer to A

Fis

PRIVATELY OWNE

Ships under1000 gross tons

Pleasure

Commercial

craft

craft

love

tugs

5 tons

bargese

Undocumented motorboats 5 tons and l

tons and over

Cargo ships

Grand

0

GOVERNMENT OWN

Name of operator 

1 One Mariner vessel now being converted t

first half of 1958 upon delivery by the shipbui

A

Ships Approved for Transfer to A

Fis

PRIVATELY OWNE

Ships under1000 gross tons

Pleasure

Commercial

craft

craft

love

tugs

5 tons

bargese

Undocumented motorboats 5 tons and l

tons and over

Cargo ships

Grand

0

GOVERNMENT OWN
H

1

M

m

W C X

O 0

W

d

6 m

7

a

2

W o PN

U

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Q

FT9

zoq 

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W

nzgqn

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F C F

tilWyVi yF F 

c c5 co 

FaaUUEU 

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h 

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60

moZ

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wc

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xoo

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y

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UqN rZi A 

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7

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60
ems2fees

E2lg2yR2g

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Rae
Cash and Ap

in the Statutory Capital and S

a

Operator 

American Export Lines Ina 

American Mail Line Ltd 

American President Lines Ltd 

Farrell Lines Ina 

Grace Line Inc 

Gulf South American 3teamsbip CO In

Lykes Bros Steamsbip CO Inc 

Missis pr MooreMcCormack ShippingLines CO IncInc 

Ocesoie Steamship Co The 

Pacific Argentine Brand Line Inc t 

Pacific Far East Line Inc 

Pacific Transport Lines Inc 

Seas Shipping Co Inc 9 

United States LmesCO 

Total 

I Operating Differential Subsidy Agreem

Operating Differential Subsidy Agreem

progress on April 30 1957

NOTEAccrued mandatory deposits a

Dec 31 1956 not included in the above 

applicable to tie capital reserve funds dep

excess profits

62