Sixth An

O

Federal Marit

Fiscal Year E

For sale by the Supermtenoent of 

Washington DC 2
FEDERAL M

WAS

J

JOHN HARL

ASHTON C 

JAMES V D

JAMES F F

GEORGE H 
LETTER OF 

FEDERAL 

To the Senate and the House o 

Pursuant to section 103 e 

and section 208 of the Mercha

mit the Annual Report of the 

fiscal year 1967

TABLE O

HIGHhIGI1 1SOF THE YEAR 

SCOPE OF AUTHORITY AND B

INTERNATIONAL COMMERCE 

Carrier Agreements 

Shippers Requests and Comp

Roles Requiring the Filing o

Cetilitics 

Exclushe Patronage Dual Ra

Freight Rates 

International Relations 

DOMESTIC OFFSHORE COMME

Regulatory Activity 

Special Studies 

TERMINAL OPERCTORS 

FREIGHT FORWAR DING 

PASSENGER INDEMNITY 

FIN NCI11 AND ECONOMIC t

ENFORCEMENT ND CONPlA 

Informal Complaint 

Field I mestigations 

Formal Proceeding 

PROCEEDINGS BEFORE JlEkR

Ni CRITINF COM NIISSION 

Final Deei Of Ole Conlnl 

Deei ion of Hearing Examin

RI LEN CEING PROCEEDINGS 

111C1G 1 TION 

LEGISLCI INEPROPO S LS 

1DMINISTR t1ION 

Organization Chart 

A Statement of appropriation 

HIGHLIGHTS 

The Federal Maritime Co

year to administer the progr

for the regulation of the wat

commerce of the United State

were executed pursuant to c

1916 Merchant Marine Ac

1933 and Merchant Marine 

The highlights were

Legislative Action89th 

Public Law 89777 enact

regulatory authority of the C

and operators are financially 

sonaI injury or death and to 

of nonperformance of voyage

tory provisions were publish

1967 and May 16 1967

Public Law 89778 enact

Commission to exempt agree

Shipping Act 1916 or any s

the requirements of the 1916 

1933 when it finds that such e

effective regulation or be unj

commerce On April 22 196

from the filing and approval 

Act 1916 nonexclusive coop

licensed independent ocean fr

rules for further exemptions 

and industry
Commission Rules

In other significant rulem

Established by amendment 

for adjudication of shippers c

riers in the waterborne comme

fits the shippers carriers and 

expense of protracted litigation 

Issued rules in General Orde

ing of applications for Commis

the foreign commerce of the U

a Uniform Merchant sContra

with provisions of law for appr

and carriers of the laborious ta

dents to determine what const

of the standard contract will e

for the carriers conferences a

Provided by rules issued a

greater stability in ocean freigh

mobiles in the domestic offsho

sively in size and are susceptible 

ment for shippers the rules req

automobiles use either a the 

facturer or individually measu

purpose of computing the freig

weight of the automobile for t

Pursuant to the measurement ru

able on a subscription basis an 

turers Measurements to assure 

Established by rules issued as 

permission requirements for fil

in the domestic offshore trades 

special permission authorizatio

transportation of commodities 

plants when such equipment an

markets

Court Decisions

Ludlow Case On August 

peals Second Circuit in Fed

Corporation v A T DeSmed

of the United States District 

y ork to enforce subpenas du

2
of the Shipping Act 1916 T

officers and agents of certain 

the Calcutta East Coast of In

ence serving the inbound trade 

United States Atlantic and G

tiorari to the United States Su

5 1966 Under this Iandmar

power to compel production 

States borders was upheld T

revenue information sought b

investigation to determine wh

reasonably high as to be detr

States and the public interest 

and 18bof the Shipping Ac

It should be noted howeve

the Court of Appeals was not 

compliance with an order of 

with the effect of the statutes 

prohibit their nationals from 

Thus when the matter was ret

ment of the order of productio

law prohibited the production 

could not impose contempt sa

for noncompliance But the m

to the Federal Maritime Comm

the conference to show cause 

celed in view of their refusal 

ping Act 1916 The Commis

complying with section 2T ha

15 of the Shipping Act 1916 

ference agreements canceled

Judicialaof Com 

making On March 31 1967 t

trict of Columbia Circuit Pac

Federal Maritime Commissio

Commission srulemaking aut

Act 1916 Petition for rehear

judicial milestone in support o

2 U IO 
the Commission could by ge

ards which it could then ap

section 15 Under the statut

to the Shipping Act 1916 the 

Order 9 setting forth specific 

ment of reasonable and eq

and readmission to conferen

as the Commission acted with

gress the rule is merely an 

statutory language Conseq

agreements to comply with th

the Act itself On this basis 

approval of a prior approved 

Commission Decisions

The Commission sdecis

another section of this repo

ticular significance

Docket No 6548Triple R

the Commission disapproved th

Freight Conference to institute 

system which proposed two leve

1 fifteen percent below nonco

receiverconsignee signed the e

and onehalf percent below non

or receiverconsignee signed T

future guidance by interpretat

b 7 as permitting only one 

rates and contract rates

Docket No 6552Modifica

Commission order served Marc

Conference and Trans Pacific 

to modify the prompt release a

but their requests to modify t

sion and natural routings claus

Order 19 final rules for dual ra

1966 the decision of the Com

dent for use of the Uniform 

Order 19 unless the applican

departure

Docket No 6627TwoLev

On July 22 1966 the Commiss

4
Conference to cease and desis

approval a twolevel system of 

all such tariff rates from the C

lished and filed two levels of ra

rate for cargo shipped via USfla

shipped via foreignflag vessel 

rate system introduced an ent

discrimination not provided in 

and would require approval of 

Other Significant Activit

In other regulatory activit

instituted on its own motion 

provisions of the Shipping A

Act 1933 issued 48 final d

ings approved under provis

carrier agreements 110 te

forwarder cooperative work

forwarders issued 55 certi

charterers attesting to financ

in event of nonperformance 

over 121 500 pages of tarif

special permission requests 

in advance of the statutory 

over 600 informal complaint

to 467 such complaints part

the courts involving the dec

concluded 511 field inves

proposals and continued an 

program with emphasis on i

Special Activities of the 

In keeping with their respo

and industry understanding of 

the Chairman of the Commiss

a number of special activities

These included appearance

ous groups in the United Sta

appearances and special artic
As examples in October 

pearances before the House 

mittee The first was in supp

agreements between persons 

Intercoastal Shipping Act 

substantially impair effective 

or be detrimental to commer

to favor the enactment of leg

financially irresponsible stea

In May 1967 the Chairma

to the Senate Commerce Co

section 27 Shipping Act 1

Commission to adopt pretria

to be used in hearings

Commission Vice Chairma

portation Seminar at Tulare 

convention of United States M

the Traffic Club of the United 

Commissioner James V D

tina in April of 1967 to expla

American shipping officials 

to aid Maine ports visited th

in their Silver Anniversary a

eign Freight Forwarders and 

January 1967

Commissioner George H H

special contacts in behalf of 

British insurance writers as a 

sibilities of the Commission 

containerization at the Nation

convention in Berlin and was 

ceremonies on May 22 196

glades Fla

Commissioner James F F

by the Chief Justice of the Un

Commissioner Fanseen in o

responsibilities of the Comm

of port and regulatory con

Sweden Denmark and the N

6
Army Reserve ceremonies a

courage the more efficient ha

Commemoration of 50t

The Commission on Sept

anniversary of the signing o

ceremony was attended by 

and Government representat

of several foreign governmen
SCOPE OF AUT

FUN

The Federal Maritime Com

tion Plan No 7 effective Aug

to administer the functions a

under the Shipping Act 191

coastal Shipping Act 1933 a

The Commission is compos

the President with the advice 

missioners are appointed for 

three of the Commissioners b

party The President designa

Chairman who also serves as 

officer of the agency

The statutory authorities a

the following principal area

and agreements of common c

sons engaged in the foreign 

acceptance rejection or disa

riers engaged in the foreign c

charges classifications tariff

carriers by water in the dome

4 investigation of discrimin

practices in the waterborne fo

5 issuance of certificates 

ship owners and charterers t

sonal injury or death and rep

formance of voyages and 6 

and making rules and regula

carriers by water terminal o

persons subject to the shippin

93
INTERNATIO

Carrier Agreements

Section 15 of the Shipping 

to grant exemptions from the 

common carriers by water in 

to other persons subject to the 

or persons enter into arrang

regarding anticompetitive act

activities include fixing rate

apportioning earnings or traff

limiting or regulating the N olu

and providing for exclusive 

arrangements The agreement

approved by the Commission u

that the agreement 1 is un

the detriment of the commerc

to the public interest or 4 is 

Activity in Process

The Commission has achie

processing of foreign carrier 

been cut from an average of o

from the date of filing This i

20day Federal Register notice 

must be given the opportunity 

ing any agreement pending bef

At the beginning of fiscal 

pending Commission approva

agreements and 28 modificati
During the year 230 agreem

145 modifications The Co

were withdrawn by the pa

requesting clarification or 

balance of 42 agreements 

process of staff analysis an

At the close of fiscal yea

agreements consisting of 1

joint conference agreements 

agreements 29 sailing agre

and 95 miscellaneous coope

Shippers Requests and 

The Shipping Act 1916 

Stat 764 provides that T

such agreement after notic

failure or refusal to adopt 

promptly and fairly hearing 

complaints

Commission rules to i

adopted in the form of Gen

July 9 1965 require that 

quarterly reports covering a

ceived or pending at the be

reports are used by the Com

ences and other ratemaking 

to the rate and shipping prob

A review of the 362 repor

that the action taken by the 

shippers in 72 percent of the 

rates refund of overcharge

percentage of favorable act

the carrier groups regularly 

ing

watchfulness

requirements

and

of

concern

Genera

o

problems

10
Rules Requiring the Fi

Concerted Activities

It is the responsibility of 

to agreements approved unde

as amended are complying w

and that their operations und

to the commerce of the Unite

or otherwise in violation of th

In discharge of this resp

Order 18 46 CFR 537 effe

conference agreements agree

and agreements whereby the 

1 the manner in which the 

carried out iefull conferen

meeting owners meeting th

telephone or oral polls or t

the business of the joint pa

requirements and the types of 

and 3 that there shall be file

sion within 30 days after each 

to the agreement a report of 

ment which are discussed or 

action taken with respect to ea

These rules have been effe

the manner in which parties 

authorized activities During f

investigated The situations in

1 Conference members ag

cargo carriage not properly 

ences were directed to amend 

2 Actions taken by confe

fications of agreements con

agreements and obtain Comm

mentation of these actions

3 Continuation of member

failed to maintain obligations 

ings may be required to resolv

4 Failures by conferences 

asp pnn 0 ns 3 
to membership and other m

directed to promptly report 

5 Statements in minutes 

instituted and general tarif

staff advised conferences of 

fications required for such 

Exclusive Patronage Du

Section 14bof the Ship

87346 effective October 3 

permit with certain specifie

by carriers or conferences of 

to all shippers and consigne

to a shipper or consignee wh

of his patronage to such c

statute requires that the Com

systems unless it finds that t

thereof will be detrimental 

or contrary to the public 

unfair as between shippers 

from the United States and 

FISCAL YEAR 1967 ACTIO

PATRONAGE DUAL 

a Approved Dual Rate Cont

As of July 1 1966 

Approved during fiscal yea

Approved systems as of 

b Dual Rate Contracts filed 

lic Law 87346 during fis

Pending July 1 1966 

Filed fiscal year 1967 

Approved during fiscal ye

Applications withdraw

approval 

Pending July 1 1967 

Adjusted from the Fifth Annual 

in accordance with Court decision

12
Of the 59 systems above w

1967 seven are not being imp

these involve the inactive Cub

have not been placed in active 

there are 52 approved dual ra

operation

Rules for Dual R

Final rules concerning the 

institute new dual rate contra

tems were published in the Fe

46 CFR 538 The rules whi

Order 19 set fortis the filing 

Merchant sContract which 

the Shipping Act 1916 as ame

The new rules will facilita

applications for Commission a

pursuant to section 14bof t

lication of the form of uniform 

carriers of the task of search

to determine what constitutes a

tions which comport with this u

expeditiously and at less co

Commission

Freight Rates

Section 18bof the Shipp

with respect to the filing of oc

by water in the foreign comm

regulations implementing this 

time Commission General Ord

the statute and order is to pro

the establishment and assessm

thereto to facilitate commerce 

uniform and unambiguous tar

criminatory rates and practices

Pursuant to section 18b 

Commission sGeneral Order 1
submitted 105 668 pages o

These filings included new 

previously filed tariffs Of th

to conform with statutory req

Order 13 On the basis of a

tariff filings received during 

211 336 new or initial rates 

fiscal year 1967 a total of 

mission A total of 116 tarif

replacement

Consistent with the Press

public the Commission insta

DCAugust 10 1966 The 

mission of tariff filings and 

day 7 days a week from s

persons sending telegrams 

Experience over the past ye

extensively and has served a

Special P

Section 18bof the Shi

sion in its discretion and fo

notice provisions set forth i

252 special permission app

visions during the year app

nine were withdrawn by the 

Freigh

When conditions at a spe

delayed beyond the norma

a common practice for ocean 

pensation for the extraordin

materially increase the cos

affect the marketing capab

tains surveillance to assure 

conditions do not warran

exorbitant levels

The Commission slast an

of its joint effort with the 

14
AID and others in obtaining 

in war risk compensation surc

further attention to war risk 

port of Saigon and a finding t

rially a congestion surcharg

reduced from 825 to 500 

Other surcharges which ha

or suspended are Persian G

shahr 10percent suspended 

Brazil350per ton cance

to 19 percent and subsequent

cent canceled Ashdod Israe

250 per ton canceled and 

General Fr

To discharge its obligatio

ocean rates are not set at leve

the Commission considers ca

rate increases placed into ef

in the US foreign commer

An example is the 12s pe

effect this year by a steamship 

trade The conference provide

ered to warrant the increase 

satisfied by the explanation 

pers protesting the increase 

vassed to learn the extent to w

port problem as a result of th

shippers advised that the incr

to market their products in th

take some action to afford th

Commission met with the con

was agreed that the shippers 

full consideration upon direct 

shippers submitted applicatio

conference and in 12 instanc

Computer Proc

The Commission spilot proj

to the retrieval of voluminous 
the fiscal year The records 

magnetic tape and six addit

stages The data bank of 40 t

ence tariffs in the trade betw

dom and the Atlantic Chan

Europe These tariffs repres

60 steamship lines operatin

continuing in collaboration w

agencies and the shipping ind

necessary for full automati

the shipping industry

International Relations

The Commission continued 

ing dissensions about its re

commerce This calls for clos

concerned with international 

attaches and international o

During the period under re

missioner George H Hearn 

Consultative Organization m

V Day and Special Assista

Brazil and Uruguay to disc

ping port operations and 

George H Hearn moderate

the National Defense Transp

Germany

The Commission held a se

Japanese shipping attaches t

tion of General Order 18 

General Order 19 uniform 

mission rules on drafting of 

ments During this period th

the Honorable Justice Richa

Australian Trade Practices T

and Admiral J C De Mace

Brazilian Merchant Marine C

the respective governments 

16
The Commission also held a 

ing group to study data on the

Foreign 

The question of foreign ship

during fiscal year 1967 Foreig

which if implemented would 

A continual close watch is 

multilateral shipping convent

Free Trade Association LAF

ment is still under active con
DOMESTIC OF

The Federal Maritime C

of domestic offshore comm

between the continental Un

Rico Guam American Sa

the provisions of the Int

Shipping Act 1916

Regulatory Activity

The Intercoastal Shippi

with the Commission and 

showing all the rates fare

transportation between por

The Commission accepts o

the requirements of the s

regulations

In fiscal year 1967 the 

freight and passenger tar

accepted the remainder E

provisions resulted in the in

proceedings placing tariff 

pension pending hearing an

The Commission sprac

water carriers shippers a

the domestic offshore areas 

solve disputes on an inform

mately 31 potential formal 

savings in both time and mo

and shippers

18
Special Perm

Section 2 of the Intercoastal 

change may be made in tariff 

rules or regulations except by p

tariff schedules Such changes c

days after the date of filing with 

the carrier the Commission ma

allow the changes to become eff

this fiscal year the Commissio

applications denied eight a

applicants

Carrie

Agreements between carrier

subject to section 15 of the Sh

such agreements be filed for 

agreement or modification is ex

sents the true and complete un

unjust discriminatory or unfa

porters importers or ports o

States violate the Shipping Ac

One carrier agreement was p

Two agreements and two mod

ments were filed with the Com

of the agreements is pending fu

set down for hearing The othe

Special Studies

The Alaska Trade Study wa

ment Printing Office for publi

is believed to be the most exha

tion needs of a particular regio

The study is comprised of e

Chapter I contains the introdu

sions Chapter II discusses the 

describes the transportation s

Chapter IV analyzes ocean fre

Chapter V evaluates services 

Alaska and discusses harbor 

279 a1W O 67 4 
covers terminals their rate

and south central Alaska 

dictional matters while C

resources economic poten

and new modes of service t

been so comprehensive wi

gressional Delegation Alas

and various shippers carr

maritime industry

A similar study has bee

Islands trades The purpos

on ocean transportation se

practices and to study the

20
TERMINAL 

The Commission is respons

of marine terminal operators 

ping Act 1916 This entails t

and policing and regulating t

In carrying out this respon

1967

1 Set July 14 1967 as t

must comply with tariff filing 

Order 15 46 CFR 533 Th

the District of Columbia Ci

April 17 1967

2 Published staff reports 

North Atlantic Ports dealin

delphia Baltimore and Hamp

gation No 5 South Atlantic a

Atlantic and Gulf Coast Ports 

for determining whether free 

tices at terminals are fair and w

truck traffic in favor of rail tra

A circular letter was disp

conferences inbound steams

sertiing the port of New York 

mation gathered at New York 

bills on import cargo showed 

not taken reasonable steps to 

to take reasonable steps to a

may amount to an unlawful re

visions of the Shipping Act 

make periodic spot checks of 

order to assure that reasonable 
Also a letter dated Jun

carriers serving the Port 

Steamship Conferences an

operators stating the Coms

allowances are contrary to 

urging that they take imme

and demurrage charges on 

sonable rules and regulatio

the Commission would inst

lishment of free time regul

3 Concluded a staff stu

handling and movement o

Boston and a review of t

North Atlantic ports Issues 

of the Port truck rail and 

trends at the North Atlantic 

organization stevedoring 

study was conducted in con

Commerce Commission and 

4 Dismissed the rulem

Docket No 965 relating to 

practices at Pacific coast t

5 Instituted an investiga

whether rates rules and r

bers of the Pacific Northwe

contrary to section 17 of th

ther proceeding Docket N

increases in the rates und

6 Instituted an investiga

whether Agreements No T1

of Oakland and Matson N

breach Agreement No T27 

son Navigation Company 

further proceeding Docket 

whether the rentals contai

T1953A are noncompen

ports or terminals

7 Instituted an investiga

whether Agreement No T1

PXa
and South Bay Warehouse 

of section 15 and whether A

of Long Beach and Evans 

T1986 are approvable un

Shipping Act 1916

8 Examined 4212 term

they were in conformity wi

1916 or an approved confe

may have been a party

9 Reviewed the minutes 

to determine whether any a

the Shipping Act

10 Reviewed 85 quarte

and complaints submitted b

accordance with the Commiss

11 Considered 113 infor

of terminal operators or oth

cluded its findings and actio

pending complaints 45 are 

12 Processed 110 termin

15 of the Shipping Act 19

determined not to be subjec

were withdrawn SeNenteeu 

the year three being the sub
FREIGHT 

Licensing

Section 44 Shipping Act 1

independent ocean freight fo

able to function as such As a 

an investigation of all applica

As of the end of fiscal yea

and 92 applications were pen

applications were received 6

were denied or withdrawn 

licenses issued previously w

Agreements

Ocean freight forwarders 

rangements or cooperative wo

From July 1 to April 22 1

with and approved by the Co

On April 22 1967 the C

Public Law 89778 79 Stat 

tive working agreements be

approval requirements of sec

Rulemaking Proceedings

Experience gained in the li

ocean freight forwarders ind

and amendment of the basic ru

a code of ethical business prac

to licensees These rules a

amended

24
As originally promulgate

prevented licensees from ch

pensation brokerage in th

carrier or the ocean carries

services unless no other lic

such services On Septemb

amendment 9 to General O

from the rule to carrier agen

ent ocean freight forwarders 

services at the port During 

were granted by the Commi

A comprehensive review 

to the regulations prescribed 

the previous fiscal year ind

rules was necessary By no

Commission amended the ro

carrier to perform ocean fre

ried on its own bill of ladin

the carrier indicates this p

approval of branch offices 

within which a licensee wo

freight monies advanced by 

rate schedules for accessor

prohibit the payment of oc

whose name appears on an o

for an undisclosed principa

in their tariffs rates of oce

licensees The effective date 

postponed pending Commiss

tion filed with the Commiss

Commission denied the petiti

tioned the US Court of Ap

ments and for an interlocut

date of the four rules pending 

the Court of Appeals order

pertaining to free freight for

but allowed the other amendm

The decision of the Court on 
On June 14 1967 in con

Commission amended Rule 

510 9to provide for autom

of a licensee to maintain a 

Commission

26
PASSENG

The enactment of Public 

panded the regulatory auth

ship activities Sections 2 and 

are administered by the Com

sibility of passenger vessel o

arranging offering advert

passenger vessel

Section 2 of the statute re

having berth or stateroom acc

and embarking passengers at 

responsibility to meet any l

passengers or other persons o

Section 3 requires persons ar

ing passage on such vessels 

indemnification of passenger

The statute specifies that sec

and section 3 on May 5 1967

Upon enactment the Com

organizational structure a 

and initiated numerous staff 

owners and charterers insur

government agencies and dip

nations As a result of these 

many complex problems and 

fore pronnulgating rules to im

sion avoided delays which c

menting rules in the limited ti

Rulemakin Proceedings

In December 1966 the C

implement sections 2 and 3 o
by the Commission in both p

rules were published for secti

2 on May 16 1967 The rules 

mission General Order 20 46 

The rules incorporate the 

securities accepted by the C

guarantors escrow agents or 

sibility must be physically loc

ment was of significant import

insurance is underwritten by 

The Commission considered t

statute was to have the assets 

pay any judgment obtained fr

The Commission sstaff me

out the problems and question

insurance policies were acc

document called a guaranty 

tiations The guaranty was de

statute It is executed by an in

in lieu of insurance policies 

been instrumental in facilitati

To avoid the imposition o

Commission issued Amendme

1967 This amendment prov

alternative methods to evidenc

Certification

Since November 6 1966 

tions for certificates of financ

gers for nonperformance of 

tificates were issued and two 

of the fiscal year In additio

financial responsibility to mee

to passengers or other perso

fiscal year nine of these certif

tions were pending

28
FINANCIALAND E

Transport Economics

Attention to ocean freight 

ocean transportation was s

Docket 6545an investigati

US North AtlanticUnited K

inter alia whether the outbo

outbound rate may be highe

any individual reciprocal inb

parate rate structures or ind

mental to the commerce of the 

interest or otherwise in violat

In the course of these proc

tently between July 12 1966 

Washington DC and Chica

ings the Department of the 

Administration intervened T

pressed concern over the bala

be affected by rates maintain

subject trade area The Sma

cerned over the effects of such 

exporters to compete in the m

aid counsel and protect the 

The hearings were conclude

ing the receipt of the briefs o

Financial Analysis

By General Order 21 Audit

in the Federal Register April 
sion provides for the audit o

in the domestic offshore trad

of verifying reports submitt

These reports show respec

rier as a corporate entity 

trades subject to the Comms

ceeding was instituted by th

the remand of the US Cour

in Alcoa Steamship Compan

United States of America 

1965

During fiscal year 1967 

carriers under provisions o

visions of General Order 5 

to be of material assistance 

and making determinations 

vidual commodities or grou

30
ENFORCEMENT 

Informal Complaints

The Commission sefforts i

rected toward resolving the c

parties concerned without res

proceedings

To this end the Commission 

carriers to establish procedu

plaints and file reports of act

tion with the Department of C

for Shippers to assist export

complaints and requests for r

ences and 3 stressed med

presented to the Commission

These policy and procedur

in resolving shippers compla

with the parties concerned T

cases acted upon by the Com

with shippers and carriers b

by adjustment satisfactory to 

Three hundred and fiftyfiv

agreements and other shippin

of the United States Throug

and negotiation with shippers 

by determination of no violat

cluding rate reductions or ot

instances There were 75 case

five of which were the subject 

the Commission Seven cases f

Act were under consideration 
Additionally the Commis

involving freight rates tarif

offshore carriers terminal 

this number 187 were res

determination of no violatio

were 81 cases in process at 

formal docketed proceedings 

6514 and 65461

Field Investigations

Legislation enacted in fisc

on the Commission sinve

While the previous year saw 

program and a reemphasis 

practices generally the cu

from Commission rules imp

as continued emphasis on 

compliance activities

During the year 378 ca

were completed The pendi

209 Investigative activitie

totaling 68350 for violatio

year

The domestic container 

in fiscal year 1966 was co

reports disclosing 46 subs

referred to the Department o

letters were sent to 24 shi

violations Steamship lines 

Commission sinspection pro

freight revenue by substan

Formal Proceedings

The Commission on its o

volving various regulatory 

four proceedings previously 

Seventyfive cases were con

sion satisfaction of comp

32
The high incidence of comp

shippers filed complaints seek

were barred by carrier seimpo

statute of limitations The filin

the Commission reopening for 

Proposed Rule Covering Tim

Claims which is presently pe

The Commission continued 

orders by conferences serving 

institution of seven show caus

erally concluded by conferenc

hearing Surveillance of the o

with the institution of nine for

eral revenue cases of which tw

the Guam trade The Guam ca

canceled its increase

The status of the Commiss

indicated below

Beg

Investigations fis

1

Section 15 2

Sections 14 16 17 

Section 18b5 

Complaints 1

Dual Rate Contracts 

Freight Forwarder

Licensing 

Rate Proceedings 

Rulemakin 

Totals 6
PROCEE

HEARING 

FEDERAL MA

At the beginning of the f

before Hearing Examiners 

fiscal year which included s

for further proceedings by t

hearings in 33 cases held 

issued 23 initial decisions du

In proceedings other tha

oral arguments involving 1

involving 50 proceedings O

or dismissed without repor

one was referred to the Chi

the end of the fiscal year the

by the Commission

Final Decisions of the 

Docket No 873 Investigatio

ing Travel Agents On remand 

the District of Columbia Circ

January 30 1964 holding tha

Steamship Conference and the 

Steamship Conference were co

Docket No 916 Investigatio

ments in the West Coast of Ita

Range Trade Three carriers in 

15 of the Act by entering into 

missions to selected forwarders 

Docket No 1153Truck Lo

Harbor Supplementing its rep

34
that the practice of the New York 

from lighterrien and refunding it 

ference agreement

Docket No 1166 Agreements 

United States Atlantic and Gull A

mand from the United States Cou

Circuit the Commission reaffirmed 

that the right of the Atlantic and G

lower rate set by the Great Lakes s

tion 15 of the Act The Commissio

the voting procedures of the Great 

Docket No 1182Rates From J

Service was found not to have just

tween its rates and the lower rates 

of its own differentially lower rat

and other Atlantic Ports and Pue

from Puerto Rico to Jacksonville wa

Docket No 1187Reduced Rate

States Atlantic Ports to Ports in P

Further Deduction in Rates on Ma

Ports to Ports in Puerto Rico On 

Appeals for the District of Colum

decision of May 10 1966 hold

Ill that cargo move through na

valid factors militating against su

necessary in the public interest h

enough to sustain carriage of esse

than would be permitted if the u

consideration The Commission m

exercise of the aforementioned a

circumstances and further found 

Docket No 1218SeaLand Se

Ferry was found to have violated 

and section 2 of the Intercoastal 

in its tariffs the fact that it offered 

ing demanding and collecting com

that specified in its legally filed t

Docket No 651Matson Navi

From Pacific Coast Ports to Ilau

pensatory and justified as a means 

Docket No 65 12Crown Ste

Terminal Association et al The 

dismissed on the grounds that the 

loading and unloading charges b

lation of any applicable section 
Docket No 6517Transs

Indonesian Ports to US At

contemplated by and the carri

were found to be within the 

the agreements were approved 

sive dealing provisions which 

On petition for reconsiderat

decision was modified to res

dictional issue

Docket No 6519Trans

Between East Coast Ports of 

Ports The agreement providi

subject to section 15 of the A

Docket No 65North A

Patronage Triple Rate Syste

decision of the Examiner den

that the proposed system and 

shippers and exporters detrim

contrary to the public interes

for more than one spread betw

Docket No 6552Japan A

Pacific Freight Conference of 

Respondent conferences were 

as to prompt release and false 

affiliates chartered vessel excl

were denied

Docket No 664 Applicat

License James J Boyle Co 

view of the fact of record that 

forwarder without lawful auth

reopened and referred to the Ch

This proceeding was subsequen

lowing the death of Mr Boyle

Docket No 6614Cuban 

agreements in the United States

state was due solely to the emb

States

Docket No 6615In the M

ferences in the North Atlantic O

modified by the Commission 

conferences

Docket No 6616Portala

Service et al The complaint w

truckers performing the pickup 

of ocean transportation were 

36
Docket No 6617Application f

License Heskel Saleh dba East

was granted on the condition that ap

age and establish an office and pe

shipper

Docket No 6627Persian Gulf 

ment of a Rate Structure Providing 

AmericanFlag Vessels Versus Fore

ture was found not to be authorize

its use was prohibited prior to subm

of the Act

Docket No 6628Boston Shipp

Marine Terminal Association et a

ground that respondents assessme

was authorized by their basic agree

violation of any applicable section o

Docket No 6629Hong Kong T

ing was discontinued upon a showin

had withdrawn its approval thereo

sidered by the Commission

Docket No 6630Application f

License E R Forwarders The a

applicant was a dummy forwarde

inate by enactment of section 44 of 

Docket No 6643 Modification 

ment The modification to the agre

rage and establishing free time on 

of the Act and was approved

Docket No 6636Outward C

enceNoncompliance With Genera

amend its basic agreement upon a 

mission General Orders 7 9 and 1

promulgations of rules pursuant to 

Docket No 6642In the Matter 

Commitment Contract of the Mili

Department of Defense was found 

meaning of section 141 of the Act a

Docket No 6652Inthe Matte

Hong Kong for a Declaratory O

lines in withdrawing its approval of 

to approval by the Commission op

Commission sconsideration

Docket No 6666Corn Produc

The Commission adopted the decisio

to complainant upon a finding that 
the Act by charging a higher 

shipment

The Commission denied a

mission sRules of Practice 

Special Docket Nos 399 40

Decisions of Hearing 

in proceedings 

Docket No 1083Investig

Atlantic and Gulf Trade It 

charged rates so unreasona

in violation of section 18b

tariff provisions for Chines

vide rates which are unj ustly 

and grant undue and unreas

persons and traffic in violati

Lines Ltd China Union L

Steamship Co charged rates 

18b3 of the Act Thai Li

16 Second 17 and 18b3 

Docket No 6513Rates 

80862 AGAFBO and Agr

unless amended to reflect ch

8493 TPAFBO is contin

WCAFBO or TPAFBO or t

before being filed and appro

the Act or that any of the 

charged rates on nonmilitary 

file with the Commission

In its tender of rates filed w

tion LibertyPac offered to 

from Germany without prov

mission but no such boxes w

18b1 of the Act shown F

ent has charged rates which a

tory with respect to goods s

on Government cargo filed 

Sapphire Steamship Lines I

low as to be detrimental to t

the temporarily reduced rate

The member lines of AGA

did not act to exclude any o

cargo in violation of sectio

violated section 14 Third of 

38
because the latter patronized Sapp

subject to section 15 of the Act be

Overseas Corp relating to the tran

Docket No 6519Free Time an

at New York Harbor Free time and 

tices on import cargo at the Port of 

and unreasonable except in certa

prescribed

Docket No 669Agreement N

Long Beach Calif Agreement No 

Calif and SeaLand of California 

or unfair as between carriers shi

between exporters from the Unite

2 does not operate to the detr

States 3 is not contrary to the 

the Shipping Act 1916 It is there

of section 15 of the Shipping Ac

Docket No 6635The Boston 

of Boston Marine Terminal Assoc

It was found that where one pa

contemplating a change in the tariff 

the procedures set forth in the a

and then independently effectuate 

change does not require prior appr

Where a Boston terminal establishe

that theretofore had been charged 

not violate section 16 or 17 of t

Boston charge wharfage to the ca

Docket No 6615Agreement 

American Mail Line Ltd Americ

East Line Inc It was determined 

has jurisdiction pursuant to sect

agreements to merge among comp

ment among competing carriers to m

tion upon accomplishment of ce

approval of corporate plan of merg

for Commission action pursuant to 

riers joint planning groups to d

financial plans for merged comp

merger do not require prior Co

approved pursuant to section 15 of 

and operating economies and impr

tation service will result merger 

upon competition or competitors o

of service competition among me
remain and benefits of mer

approval of agreement amon

purchasing and data process

tion continued in effect

Docket No 6649 Invest

Atlantic Mediterranean Frei

merce of the United States as 

means intercourse between o

includes cargo whether gov

mercial shipment or not mov

state andor the instrumenta

and another or a foreign cou

the Department of State 850 

Mediterranean ports from US 

goods they charged 60 per 

tary departments 3620 per 

goods in a similar manner o

not being justified by any tr

unreasonable preference or a

have unjustly discriminated a

sections 16 and 17 of the A

handling of one shipper sco

violation particularly where 

period about 300 complaints 

shipper has complained Abs

actions of a conference the 

conference are foreignflag is 

dominated the conference in 

establishment of rates for US 

to be transported on US ve

There is insufficient evidenc

by the common carriers have 

18b5 of the Act

The Examiners also issued 

6512 65118 6552 66 15 

and Special Docket Nos 401 a

of the Commission

Pending Proceedings

At the close of the fiscal yea

28 were initiated on the Coms

instituted by formal complain

associations shippers individ

LEI
RULEMAKING 

The following rulemaking p

1967 are in progress

Docket No 6729Rules of 

Amendments Proposed rules publis

Docket No 6739Common Ca

of the United States Exemption Fr

rules published May301967

The following rules were publishe

General Order 9Practices of Li

Freight Brokers and Oceangoing C

tions of Carrier Agents Amendm

11 Exemption of Certain Agreem

Suspension of Licenses

General Order 16Rules of Pra

Small Claims Procedures

General Order 19Contract Rate 

United States

General Order 20Security for 

to Liability for Nonperformance 

Injury

General Order 21Audits and Au

Amendments to Tariff Circular N

mobiles and Special Permission Req
LIT

Seventeen petitions to rev

were pending in the variou

beginning of the fiscal yea

in the Courts of Appeals T

the fiscal year leaving nin

briefing or pending argume

Three appeals from decis

pending at the beginning of 

during the fiscal year All fi

the decisions in all cases b

Five petitions for writs 

Court of the United States d

gants and one by the Comm

the private party petitions 

of these petitions were den

which the Commission had 

and argument during the n

mission spetition during th

Some of the more import

were

Federal Maritime Commissi

Cir 1966 which held that 

fully enforceable where issue

determine whether certain oc

18b5 of the Shipping Ac

were in violation of sections 1

disagreed with the District Cos

pursuant to section 18b5 

violations of the Act The Cour

Investigations brought to 

brought pursuant to section 22 

that might have been made the 

42
is strong countervailing evidence of 

the Commission could exercise its se

such investigations 364 F 2d at 71

Federal Maritime Commission an

et al 366 F 2d 464 2d Cir 1966 

which affirmed an order of the US 

of New York enforcing obedience 

judge dissenting held that the Comm

required the production of evidence 

Stockton Port District v Federa

9th Cir 1966 certiorari denied 

order of the Commission determinin

practices were not unlawful in the 

of Stockton on cargo loaded at Sa

San Francisco Bay

Volkswagenwerk Aktiengesellcha

F 2d 747 DCCir 1966 which 

sion that an agreement among the me

was not an agreement required to be 

sion

agreement

pursuant

provided

to section

for the

15

fundin

of the 

modernization agreement between 

the International Longshoremen sa

This latter agreement was a signifi

managementlabor practices in th

return for financial guarantees that 

such automation The Court also a

that the method of funding the costs 

17 of the Act On June 12 1967 

werk spetition for writ of certiorar

the Court of Appeals and the case w

October Term 1967

Aktiebolagel Srenska Amerika L

sion 372 F 2d 932 1DC Cir 196

mission disapproving the unanim

Passenger Steamship Conferences T

report had been issued in its Dock

pursuant to a remand by the same 

Commission filed a petition for a w

seeking review of the opinion and j 

Flota IMercante Grancolombiana 

2d 674 DC Cir 19671 which a

Court of the United States Consol

US 607 1966 an order of th

Consolo a shipper of bananas for 
space on Flota sships The C

by the Supreme Court which 

the reparations award and s

opinions

We are

and

satisfied

the briefs

after a

of

th

effort to set the reparations fi

parties Mathematical precisi

an agency is hemmed in by 

may not have decided all of 

basis for disturbing its views 

of many factors and a concern 

that the award rests upon a 

exercise of agency discretio

Federal Maritime Commis

373 F 2d 424 2d Cir 196

District Court for the South

Supp 225 enforcing subpen

gation conducted pursuant to 

rejected the contention adva

doring and terminal practi

authority

Persian Gulf Outward Freig

375 F 2d 335 DCCir 19

holding that a revision of ta

carried on American flag ship

foreignflag ships constituted 

ment The Court also approv

ployed by the Commission 

conference was afforded an 

were material to the issue bef

States Marine Lines Inc 

2d 230 DC Cir 1967 w

body policing system must 

accused of violating the co

proved self policing systems 

determined that that neutral 

relationships with the membe

fied from acting on a compla

or professional relationship 

that it could not lightly dis

impracticality of requiring 

remanded the proceedings to 

of procedures for internal re

was of the opinion that app

would provide a check agai

M
Body would have to demonstrate 

evidence made available to the acc

Pacific Coast European Conferenc

rulemaking

376 F 2d 785

authority

DC Cir

derived

1967

from

w

promulgating rules concerning adm

from steamship conferences The C

the conference sagreement be with

was

contention

forthcoming

that the

In

Commission

affirming the

cou

o

agreement for noncompliance with 

This contention has the antique v

ness The difficulty is that it is a doc

law It comes indeed at a time whe

urging the agencies to make greater 

authority in the interest of more pre

376 F 2d at 789

The Alabama Great Southern R

Commission F 2d DC C

which affirmed the Commission s

terminal services rendered by rail 

port terminal facilities The Court h

the jurisdiction of the Interstate C

sible as a means of keeping the Mar

within the latter sjurisdiction The 

not be warranted in attempting to 

before any action has been taken o

Court concluded that the advance fi

militates against our conclusion th

tioners no unreasonable or unperm

American Export Isbrandisen Lin

F 2d i DC Cir No 20114 

a decision of the Commission conc

Services program for procuremen

cargoes In 1966 ISTS proposed a 

procurement of ocean transportatio

had negotiated rates with individu

Commission determined that the co

in the formulation of dual rate con

of the Commission before they may b

Act 19161 and was not an unjust o

section 16 of the Act

During the fiscal year the Commis

for consideration 25 cases involvin

and the Intercoastal Shipping Act 

necessary assistance in connection 
LEGISLA

The Commission subm

the Congress during the 

Intercoastal Shipping Ac

require a carrier to keep 

account of increases in ra

of a period of suspension 

such increases thereafter 

4329

The second would am

to authorize the Commis

covery procedures to be u

the Federal Maritime Co

Chairman Federal Mari

the Commission to the Su

eries of the Senate Com

proposal S 706 on M

The third would amen

Federal Maritime Comm

or to waive the collection 

charges S 1905 and HR 

The Commission also m

duced into Congress and 

The Chairman in Oc

Merchant Marine and Fis

89777 and Public Law 

1966 are included in the 

46
ADMINIS

Commissioners

Commission members for the 

Rear Admiral US Navy Re

of Mississippi James V Day 

New York

Commissioner John S Pattes

tember 21 1966 with entran

Activities Control Board

James F Fanseen of Maryla

April 20 1967 for the term ex

In accordance with the policy 

the Commission on September 

as Vice Chairman succeeding J

Personnel

There were 270 employees o

The Commission continued 

hiring largely at the trainee le

gators was introduced for the f

employed effectively in increas

man on the job

A series of evening seminars 

under the leadership of the Man

was attended by professional 

Commission representatives o

shipping attaches of foreign em

was placed on improving serv

performance standards for sec
The fifth anniversary o

observed with an employe

at which time 25 employ

cant service milestones i

ployees received awards 

operations and service to 

Management Improvem

In continuance of an a

gram the Commission in 

ress in reducing paperw

proceedings discussed els

Additionally in the in

the Commission increase

tions and service through 

and effected significant 

facilities

Through the facilities o

sion now offers onestop 

shipping industry relative 

tions and activities

A pilot study of the ap

agreements was complete

the preparation reprodu

service to be made availa

Printing Office at a nom

compilation listing of app

water in the foreign com

includes conference rate 

agreement numbers curre

tives and their addresses 

agreements listed Applica

instance has thus achieved 

agreements not heretofore 

M
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Statement of Appropria

E

APPROPRIATION

Public Law 89797 89

ber 8 1966 For ne

Maritime Commissi

ized by 5 USC310

cles and uniforms o

ized by the Act of 

5USC5901 

Public Law 9021 90

1967 Second Supple

to cover increased pa

July 18 1966PL89

Appropriation ava

OBLIGATIONS AND UNOBLIG

Net obligations for sa

year ended June 30 

Unobligated balance w

STATEMENT OF RECEIPTS 

FUND OF THE TREASURY 

JUNE 30 1967

Duplication of records 

Freight forwarder licen

Fines and penalties 

Miscellaneous 

Total general fund r

50