Fiscal Year Ended

June 30

1929

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON 1929

For sale by the Superintendent of Documents Washington D C Price 20 cents
THE UNITED STATES SHIPPING BOARD

T VOCONNOR Chairman

EDWARD C PLUMMER Vice Chairman

H I CONE Commissioner

ALBERT H DENTON Commissioner

JEFFERSON MYERS Commissioner

S S SANDBERG Commissioner

ROLAND K SMITH Commissioner

SAMUEL GOODACRE Secretary
TABLE OF CONTENTS

I UNITED STATES SIIPPING BOARD

Letter of transmittal 

Organization chart FacI

Organization 

General statement 

Bureau of Traffic 

Bureau of Regulation 

Bureau of Operations 

Industrial relationsdivision 

Investigations division 

Port facilities division 

Bureau of Construction 

Bureau ofLaw 

Litigation and Claims division 

Contracts and opinions division 

Admiralty division 

Bureau of Finance 

Bureau of Research 

Secretary 

II UNITED STATES SHIPPING BOARD 31ERCHANT FL

CORPORATION

Organization chart facin

Organization 

Special features of the year sactivities 

Sale of United Suites Lines and American Merchant Lines 

Other ship sales 

Extent of vessel operations 

Total results of operations 

Cost of maintaining cargo services 

Operating losses for passenger services 

Coal trade 

Other operating results 

Reduction of pay rolls and administrative expenses 

New operating agreements 

Principal events of the year in operations and supply 

Centralized purchasing 

Disposition of surplus stores and reduction of stocks 

Fuel purchases and issues 

Bunkering 

Stevedoring costs 

Operation of tankers 

Care of reserve fleet 

Terminals 

M
IV CONTENTS

Progress along special technical lines 

Diesel conversion prgram 

Fuel conservation 

Tests

Badio

with pulverized coal 

Traffic 

Generalconditions 

European and Mediterranean trades 

South American trade 

Far East Australia and India trades 

PublicitS 

Insurance 

Marine insurance 

Protection and indemnity insurance 

Finance department 

Cash discount and interest 

Cash accounts 

Collection of pestdue accounts 

Housing properties 

Securities 

Consolidated cash statement 

General comptroller sdepartment 

APPENDIX

TA I Vessels sold and vessels disposed of other than by sale d

the fiscal year ended June 30 1020 

11 Vessel property controlled by the United States Shipping 

Merchant Fleet Corpmmtimi as of June 30 102

III Status of vessels controlled by United States Shipping 

Merchant Fleet Corporation as of June W 10D 

IV Managing operators and charterers of Shipping Board v

as of June 30 1029 

V Services maintained by the United States Shipping Board 

chant Fleet Corporation as of June 301920 

VI An analysis of the total vessel property acquired by the U

States Shipping Board showing disposition of same 

June 30 1029 

VII Summarized consolidated cash statement by appropriation

the fiscal year ended June 30 1929 

VIII Balance sheet as at June 30 1929 

IX Gross appropriations and allotments from inception to J

1929 

X Estimated operating profit and loss fiscal year 1929 

XI Names and compensation of employees of the United 

Shipping Board in the service on June 30 199

Names and compensation of employees of the United 

Shipping Board who have been in the service some part 

fiscal year ended June 30 1029 
LETTER OF TRANSMITTAL

UNITED STATES S7Ef1 FINn BOARD

Washington D C November 30 

To the Congress

In compliance with section 12 of the shipping act 1910 w

the honor to transmit herewith the thirteenth annual report 

United States Shipping Board and the United States S

Board Merchant Fleet Corporation covering the fiscal yea

June 30 1929

T VOCovsan Chairman

EDWARD C PLUMMER Vice Chai

H I CONE Commissioner

ALnERT H DENTON Commissione

JEFFEBSON MYEns Commissioner

S S SANDBERO Commissioner

ROLAND K SMITH Commissione

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PART I

UNITED STATES SHIPPING BOARD

m
I
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

the Shipping Boardwhile still considering bids which ha

received for two other lines the American Diamond and 

ica Francewas preparing to proceed with the advertisem

additional lines when an uncertainty developed as to whet

mail revenues provided in the appropriation acts would a

go to the companies which were purchasing these services 

close of the fiscal year that uncertainty still continues a

efforts are being made by the interested departments of th

ernment to clarify the situation as will appear in a 

paragraph

Title IV of the merchant marine act 1925 dealing with 

mail contracts provides that contracts sliall be awarded 

lowest bidder who in the judgment of the Postmaster Gene

sesses such qualifications as to insure proper performance 

mail service under the contract In the original plan

Shipping Board lines the board took care not to establish 

ernment service where the trade was already adequately se

an Americanflag line The absence on any particular rout

Americanflag service other than that established and sold 

Shipping Board has not however prevented American ow

tonnage operating in whole or in part under foreign flag

entering bids in competition with the services built up 

Shipping Board the bidder in such cases assuming that if 

secured a contract he would be able to acquire a fleet of 

eligible to participate in the benefits of the merchant ma

1925 and with the aid of the revenue received from the Gove

meet the terms of the contract This situation was broug

head when the purchaser of the first of the Shipping Boa

to be sold after the passage of the deficiency appropriation 

underbid by a company operating chiefly foreign flag ton

that trade

The Shipping Board has every sympathy with the d

American citizens who have previously been operating fore

tonnage to establish services under the American flag It 

however view without concern the granting of a mail con

such a line established in competition with a route which h

built up and sold by the Shipping Board In the terms 

of Shipping Board lines it has been customary to require 

chaser to guarantee the maintenance of regular service for 

of years and for the Shipping Board to guarantee that du

period it will not sell directly or indirectly any vessels whic

entered into competition with the service sold In the view 

Shipping Board not only is the Government under moral o

to make available to a company purchasing a Shipping Bo
S TIIIATEENTH ANNUAL REPORT UNITED STATES SHIPP

the mail revenue already provided for such line by the Jo

Act and congressional appropriations but it would am

further and more serious breach of faith for the Governm

through one of its agencies the Shipping Board has sold 

to proceed through another of its agencies the authority 

mail contracts to create a new and competing service by 

to such service the very mail pay which Congress contempla

be extended to the purchaser of the Shipping Board line 

ernment must find some way of being consistent with its

plan for building up an American merchant marine so we

will come to disaster

In order the better to coordinate the Government sp

respect to awarding mail contracts the President of th

States on April 26 1929 announced the appointment of 

departmental committee consisting of the Secretary of C

chairman the Postmaster General the Secretary of the N

the Chairman of the Shipping Board whose duty it was t

and make recommendations bearing upon this question

At the close of the fiscal year this committee had just 

consideration of the several problems confronting it Un

ministration of the law is clarified by the interdepartme

mittee or by Congress the lines recently sold by the Shippi

but which have as yet obtained no mail contract will ope

a distinct disadvantage and the board will be handicapp

efforts to dispose of its remaining services and ships

Second National Conference on the Merchant Marine

In January 1928 there was held under Shipping Board 

a national conference of private American steamship own

tors builders and allied interests So gratifying were t

achieved by this conference that a year later it was decide

another Consequently on January 23 1929 the second nat

ference on the merchant marine was convened in Washin

was attended by an even greater representation of ship

than was present the year before The following list o

constituted the official agenda of the conference

Reduction of differential between shipbuilding costs 

abroad

Methods of increasing patronage for American ship

Discriminating duties in indirect trade

Extension of coastwise laws to Philippines

Mail contracts

Government aid to American cargo ships

Panama Canal tolls

Marine insurance

Disposition of the Government slaid up fleet
TIIIRTEENTII ANNUAL REPORT UNITED STATES SHIPPING BO

Establishment of foreigntrade zones in ports of the 

States

Americanization of crews

Merchant Marine Naval Reserve

Safety of life at sea

Load line legislation

Marine engineering development and research

The deliberations of the conference were followed by the 

ment of committees to study some of the more important 

of the agenda and report their findings and recommendatio

Shipping Board Upon the receipt of a sufficient number 

mittee reports to warrant such action the board will iss

for another conference to consider the committee recomme

Safety of Life at Sea

During the year off vials of the board were engaged w

departments of the Government and with representatives o

American shipping interests in studying the British prop

the revision of the 1914 Convention on Safety of Life at 

in formulating the American position In addition to t

amount of research and expert technical work required in 

nection the Board sponsored a number of practical per

studies in order that the data obtained through experime

be checked against those arrived at through calculation 

chinery compartments of two Shipping Board vessels were 

and in another series of experiments there was obtained de

formation as to the permeability of a large number of com

This information which had never before been availabl

great assistance to the experts working on problems of s

volved in the proper subdivision of ships

The international conference met in London on April 

and on May 31 1929 the delegates signed the new conventi

will come into force on July 1 1931 as between the gov

which have deposited their ratifications by that late with 

ernment of Great Britain provided that at least five ra

have been so deposited

General satisfaction has been expressed with the results 

by the conference and it is believed that the standards 

set by the new convention are such as to warrant ratificatio

Government of the United States

Load Line Legislation

The question of load lines is so intimately bound up w

questions relating to safety of life and ships that in the bs

annual report p 8 it was recommended to Congress tha

7014120 2
10 THHtTEnNTII ANNUAL nLPOnT UNITED STATES SHIPPIN

line bill should be enacted into law prior to the forthcomin

national Conference on Safety of Life at Sea It was 

congressional action as recommended would greatly streng

position of the American delegates to the London conferen

the United States was the only great maritime nation that 

enacted load lire legislation

Congress subsequently enacted a loadline measure wh

approved by the President on larch 2 1929 This act 

to become effective in September 1930 does not apply t

on the Great Lqkes or in the coastal and intercoastal trade

ever at about the same time that the bill was passed th

agreed to a resolution Senate Res 345 requesting the S

of Commerce

to make a comprehensive study of load line legislation in the coas

intercoastal trade and the Great Lakes and nll types of vessels a

mit his report covering the same to the Senate during the month of 

1029 and to accompany such report with a tentative draft of a hill to 

his recommendations

The United States Load Line Committee 192S on wh

members of the Shipping Board stechnical staff have been 

is cooperating with the Department of Commerce in wor

these loadline problems Meanwhile the load line committe

British Board of Trade has been engaged in a revision of the 

British loadline regulations and is expected to render its rep

time during the present summer Owing to a movement now 

to call early in 130 an international conference on loadline 

tions there is a probability that these and other national 

systems may in some measure be coordinated

Recommendations

The shipping act of 1916provides that the Shipping Boa

annual report shall make such recommendations to Congress 

lieves would be of value to the American merchant Marin

following recommendations some of which have been subm

fore are laid before Congress for consideration in connect

further measures undertaken in the interests of American s

Changes should be made in the present laws relating 

division of damages in cases of collisions of vessels at sea 

form to the proposals of the International Marine Conve

1910 These changes should be brought about by legislatio

than by treaty

Recommendation is made that legislation looking to the a

of the Hague rules substantially as provided in H R 3530 

be enacted at an early date

The International Convention for Safety of Life at Sea 

in London on May 31 1939 by delegates from 13 gove
TIIIRTEENTII ANNUAL REPORT UNITED STATES SIIIPPING rOA

including the Government of the United States should be 

and given full effect by Congress

Provisions should be mode for tax exemption on American 

operating in foreign trade including a provision whereby 

tions shall be allowed from taxable incomes derived from op

profits to the extent that such profits are devoted to ne

construction in American yards

Legislation should be enacted looking to the transfer to p

owned American shipping interests of the peacetime busine

handled by Army and Navy transports and by the vessels ow

chartered by the Panauna Railroad Steamship Line

Funds should be appropriated to carry into effect the 

Congress approved February 29 192 x providing for the c

of a naval reserve

Some form of Government aid should be provided for Am

cargo ships not benefited by mail contracts in order to low

operating differential which now handicaps these vessels 

peting with ships owned and operated by foreigners

Proposals have frequently been made to establish free 

or foreigntrade zones in ports of the United States and 

bills to that end have been introduced in Congress In 

difrerences of opinion as to whether or not the establishment 

zones would benefit American shipping it might well be con

whether their establishment in this country if sanctio

Congress should not first be undertaken on a limited scale 

direct authority of the Federal Government

In the following pages will be found detailed reports cove

fiscal year 1929 of the seven bureaus constituting the S

Board and also in Part II the report of the United 

Shipping Board Merchant Fleet Corporation

It has been a year of ratifvin progress for the Am

merchant marine Our people are manifestin increased int

matters relating to the sea and American capital is becomin

available for maritime investments The Government 

rapidly being transferred to private American ownership u

greater part of it is now in private hands New ships ar

planned for early construction Our trade with foreign 

continues to show phenomenal growth

The Shipping Board directed and supported in its eff

Congress has solved many of the problems which in fonsue

confronted the American merchant marine Some of the p

that remain for solution are serious and pressing althou

insoluble They continue to receive the earnest consideratio

board acting in cooperation with other departments of the 

ment and with the country sprivate shipping interests
12 TEIIRTEEVTII AyY UXL REPORT tiNITED STATES SIfIPPI

BUREAU OF TRAFFIC

The work of the Bureau of Traffic of the board relates pa

to matters which contril uteto the development of a privat

and privately operated American merchant marine inc

examination of international items which are prejudicial to 

chant marine or the development of American ports It do

clude work incident to the operations of the vessels of th

ment under the control of the board Among the activit

bureau during the year have been the following

International Items

In aid of the purposes of the merchant marine acts the 

directed to investigate conditions unfavorable to our hi

foreign trade which arise from foreign rules or regu

applied by foreign officials or from competitive methods o

employed by owners operators or masters of foreign vesse

In so far as these activities involve contacts with foreign gov

the cooperation of the Department of State is of course inv

its cooperation has been uniformly received Upon t

tive of various private operators the following items have 

attention

Italian RemsRelative to activities of the Italian Gove

its plans to extend the ocean transportation facilities of tha

a Protests having been made particularly at Legh

because of the large portion of exports to this country tr

by American vessels an investigation was made disclosin

agitation was not directed particularly against America

The Department of State ascertained that Italian officials 

posed to recognize the distinction between direct and indi

and to recognize the existence of the mutual right of vess

countries involved in direct commerce with Italy to an 

share of the tramportation of such commerce America

naturally seek and are securing a substantial part of the t

tion of our direct commerce with Italy on the other han

vessels natlrally expect substantial participation in that t

an approximately equal division between the two flags seem

Reports reveal that Italian activities have had in view 

sion of this American car to Italian vessels chiefly from 

vessels other than American in other words diversion f

vessels which as to this traffic are vessels operating i

trade

b In the last annual report p 20 reference was m

alleged Italian practice under which Italians including 

citizens of Italian origin traveling to Italy on Italian s

granted 50 per cent reduction on the fare of Italian railw
THIRTEENTH ANNUAL REPORT UNITED STATES SUIPPING BOA

bureau sinvesth ation revealed that this concession while lim

Italians is not limited to Italians going to Italy by Italian 

the concession is made them regardless of the flag of the v

which they travel Among the tests applied is that the ve

which they travel operates in direct trade with Italy and t

passenger first disembarks at an Italian port

c The practice of visaing passports of foreigners visitin

without charging for such visaing provided the person ar

Italy by an Italian vessel was also brought by the board 

attention of the Department of State as a prejudicial discrim

against American vessels This practice thus incidental

plained of as affecting our merchant marine culminated in 

tions with the Italian Government which have resulted not 

the removal of the discrimination mentioned but in the 

abolition by the United States and Italy of all charges for 

passports of their nationals traveling in the respective coun

d Further conferences have recently been held by represe

of the bureau concerning the negotiations pending betwee

and the United States for the mutual recognition of the in

laws of the two countries under which arrangement if consu

American vessels visiting Italian ports and Italian vessels 

American ports shall not be required to comply with th

inspection laws of the other country provided the condition 

vessel is in compliance with the inspection laws of the co

which it belongs These negotiations are still in progress

e The report referred to in the last annual report p 2

the Italian Government would pay to owners of Italian vesse

atin through the Panama Canal the amount paid by them f

tolls was investigated at the instance of the bureau of traffic 

Department of State and the Italian Government disclai

Italy is paying or intends to pay Panama Canal tolls on 

vessels

French itemsa Negotiations are also pending between 

and the United States for mutual recognition of their vessel in

laws The board sinterest in such matters arises from the h

resulting to vessels when subjected to a double set of requir

namely those of the United States and those of any other 

which the vessel may visit Unless reciprocal agreements 

ranged a vessel may be subjected to as many different sets of 

tion requirements as there are countries whose ports the vesse

As proposed international agreements these negotiations ar

the supervision of the Department of State they are the resu

ever of initial action taken by the board and its representativ

part in conferences relating to them
14 TIIIBTEENTII ANNUAL REPORT UNITED STATES SHIPP

b The complaint that under French customs regulatio

ing the importation of Dlexican lead into France a higher 

applied when imported through an American port was inv

at the instance of the bureau by the Department of State 

conclusion was reached that as it was distinctly a tariff m

ception could not be taken under all the circumstances eve

loss resulted to American ports or American ships

c An alleged discrimination in favor of French ves

requirement of that Government that certain supplies 

should be transported in French vessels was investigated 

point of view that the French control of Syria was under a 

of the League of Nations and therefore French possessi

trust for the development of Syria and subject to the rig

nations in their commerce with that country It was dec

ever that no protest on our part would be justified Th

here recorded as evidence of the zeal of the nationals of tha

in securing for its own vessels wherever possible the trans

of cargo under their control

SPnish itemsa An investigation of the refusal o

officials to recognize classification certificates issued to 

vessels by the American Bureau of Shipping has been initia

in progress The board s activity is not prompted by th

of the American Bureau of Shipping in a commercial se

prompted by the importance to our merchant marine of 

American classification society performing for American v

functions performed for instance by British Lloyd sor th

Bureau Veritas The board felt justified in taking speci

in the American Bureau of Shipping because of the quas

status given it by the terms of section 25 of the mercha

act of 1920 Recognition of its certificates has been declin

ground that plans are in progress to establish a Spanish 

classification and registration and Spanish officials have 

that when this is done even those classification societies w

heretofore been recognized will have such recognition can

this pronouncement reveals a misunderstanding of the Ame

tentions further communications are in progress to secure 

nition requested viz the same recognition as that exten

foreign classification societieswith special reference to 

tificates when held by American vessels If Spain est

classification society its laws may establish preferential 

between it and Spanish vessels it is improbable however 

sels Dot Spanish will be asked to have classification in such 

Spanish organization in order to receive full parity of tre

Spanish waters
TIIIRTEENTII ANNUAL REPORT tiNITED STATES SHIPPING BO

L The revenue act of 1925 exempts from American inco

revenues derived by foreign citizens from vessels operating i

States ports when the country of the foreign vessel rec

by exempting American citizens from income taxes there 

if any as to income from the operation of American vess

ports Upon the request of the Treasury Department of th

States the bureau has inquired what the experiences of A

citizens have been with respect to income taxes imposed b

and that department has been advised it will be justified in a

income taxes are not imposed by Spain under the circu

mentioned

Chinese itemsAn item illustrative of the many factors 

a merchant marine was the action taken by different countr

China recently imposed an import tax of 7 cents on flou

in excess of the tariff fixed by treaty Primarily this incre

not an item affe ting the competitive relations of shipping 

ous nations It became however an item under which 

vessels acquired preferential treatment by shippers This 

result of prompt action by the British Government in arrang

the treaty tariff of 5 cents need only be paid into the Chine

ury at the time of the importation the remaining 2 cents to 

to the British consul and held by him pending final decisio

legality of the new tariff under existing treaty provisions 

vessels thus had an advantage over American vessels as i

preferred having the excess amount impounded in neutra

so as to assure its prompt return if ultimately the tax is h

illegal

No such facility having been arranged for American vesse

was taken by the board through the Department of Stat

resulted in the American consul also being authorized to ac

excess payments pending final determination of the questi

competitive Status of our vessels was thus restored

Although the recent treaty between the United States an

dated July 25 1923 had been negotiated at the time it was 

in force ratifications not having been exch mged until Febr

1929 Under the new treaty fill recognition appears to h

given to the principle of China stariff autonomy The ite

tioned above illustrates the disadvantage American ves

American commerce would suffer if the new treaty applied 

qualifications while the vessels of other nations operated u

earlier treaty limitations Our commercial interests are ad

protected however by a most favored nation clause in 

treaty hence the item mentioned above remains a pending 

decision under the earlier Chinese treaty provisions
16 TIIIRTEENT11 ANNUAL REPORT UNITED STATES SHIPPIN

Danish itemsThe American Scantic Line operating 

New York and ports of Denmark was organized and d

by the Shipping Board and was sold to the present owner 

Heretofore Denmark has permitted vessels of this line to 

emigrants from Danish ports providing not more than 

taken on any one vessel This privilege has been enjoyed 

the Danish rant of a practical monopoly to the Scan

American Line in the transport of emigrants contains an e

which permits other vessels to transport emigrants so lon

number of passengers carried does not exceed 25 this l

to 25 has not been substantially prejudicial to American v

the American Scantic vessels are practically the only Amer

sels interested and their passenger accommodations are li

less than that number

During the year however a bill was introduced in the 

leislature extending the monopoly of the Scandinavian A

Line an additional 10 years but omitting the above exce

terms therefore the bill if enacted would bar the trans

by American vessels of emigrants coming to the United Sta

ports of Denmark The commercial loss accruing to the A

line while important in itself is less important than the 

involved namely whether a foreign nation may limit to 

vessels the transportation of passengers embarking at its p

it be conceded by virtue of the control every nation has ove

ports that a nation may impose such a limitation on outbou

pin it is obvious that principle applies equally in favo

country at the other end of the voyage namely that in p

persons to enter it likewise may prescribe they must arriv

sels of the flag of that country The deadlock which would 

presented has usually been avoided by the mutual recog

nations especially in their direct trade that their respectiv

may equally participate in such direct trade The item 

further considered by Danish officials

Portuguese iteyn cThe traffic effect on American vessels 

Portuguese ports resulting from an enactment of that Go

June 29 1928 known as Decree No 15658 has been under i

tion by this bureau This regulation would refer to the P

harbor master supervision control and clearance of any ves

has sustained damage and entrust to him any survey of t

seeming to him necessary Vessels classified by duly a

societies would be prejudiced by the provision and furthe

would apparently subordinate the authority of our consula

in the survey of American ships to Portuguese officials Th

Government having filed a protest it was recommended to 

partment of State that the American minister also file 
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BO

This was clone caution also being given that whatever as

were finally agreed upon the American minister should see t

all recognition conceded certificates issued by classification 

of other nations should be extended also to certificates an

privileges of the American Bureau of Shipping Diploma

tiations have recently been held in London having in view 

recognition of certificates of seaworthiness and formalities 

to the clearance of damaged ships The protest filed did no

to the application of the proposed act to unclassified vessels

Penezuelan itemThe Department of State having br

the attention of this board a proposal by the Venezuelan 

ment to double the buoy tax for all ships engaged in t

tween Dlaracaibo and foreign ports this bureau investig

probable effect of such proposed action including corresp

with all steamship companies interested in that traffic The 

gation revealed that no prejudicial effects would be suf

American shippers

Argentine item Complaint having been received that A

vessels were prejudiced by delay at the port of Buenos 

their assignment to proper docics this board secured the co

of the Department of State for the purpose of emphasizin

Government of Argentina that the vessels in question w

vessels operating under a postal contract authorized by the m

marine act of 1928 and the hope was expressed that any 

usually given mail vessels may be extended them according

Coastwise Laws

Interest of the board in the coastwise laws of the United 

clue not only to their general bearing on the development o

quate merchant marine but also to definite provisions and 

of the merchant marine act 1920 the administration of 

primarily with the board The importance of the coastwise 

the upbuilding of our merchant marine is not diminished 

Government aid extended a limited number of certain classe

sels operating under ocean mail contractsto which referenc

where made p 31 The benefits of such contracts do not 

that large percentage of American vessels frequently tran

cargo only in our foreign trade and prejudiced in that 

handicaps when in competition with foreign vessels result

our navigation laws and economic conditions

The development of intercoastal trade through the Panam

has made possible the operation and therefore the constr

American shipyards of larger and finer vessels than req

coastal trade prior to the opening of the canal vessels more 

than smaller craft for use in transocean trade if and wh

competitive handicaps in foreign trade are equalized The 
18 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPIN

activities have continued to the end that the applicatio

present coastwise lams shall be continued and enforced 

ther that these laws be extended to our island possession

when adequate service between continental United States 

islands justifies this step These activities of the board ar

the general provisions of our coastwise laws and more pa

under the provisions of sections 21 and 27 of the merchan

act 1920 They are based also on efforts by foreign int

advance international agreements and understandings whic

neutralize and ultimately destroy the system Section 21 o

provides for the extension of the coastwise laws to the P

Islands and to the other island possessions of the Unite

They have been in effect with reference to the Hawaiian Isl

Porto Rico for some time they are not yet in effect with 

to the Philippine Islands and the Virgin Islands

The Virgin IslandsOur coastwise laws would auto

apply to the Virgin Islands but for the provision that they 

apply thereto until adequate shipping service with the Unite

is established and that the time they shall apply shall be 

by the President until this has been done The board has 

from time to time that such service by American vessels 

quate and the President by proclamation has extended 

for their taking effect the last extension having been to S

30 1929 As the service by American vessels continues ina

it is probable the time will be further extended by the Pres

The Philippine IslandsThe Philippine Islands will no

ject to the coastwise laws thus limiting traffic between thos

and the United States to American vessels until the Pres

proclamation declares that an adequate shipping service 

established and fixes a date when those laws shall apply 

not been done A resolution of the board dated January 

certifying adequate shipping services to exist at that time h

been repealed During the past year renewed inquiries h

made concerning the adequacy and acceptability of service b

can vessels including the attitude of American merchants 

with the Philippine Islands to the proposed extension of the 

laws to that trade

Incident to these investigations complaint was received tha

can tonnage was not adequate to handle seasonal movements 

Investigation revealed that the complaint had reference 

transportation from the islands to North Atlantic port

transshipment on the Pacific This bureau having comm

with steamship lines interested was assured that adequate 

such cargoes would be allotted
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BO

The following is a statement of the various services oper

tween the islands and continental United States showing the 

can services only

Atnerican flag services between Philippine Islands and continental Un

Action by the President involves however local needs an

tions of the interisland trade of the Philippines Further in

tions are in progress not only with respect to transocean 

but also to local conditions that present conditions may be 

duly considered

Great Lakes tradeSection 27 of the merchant marine a

confirms and extends our coastwise laws by further limi

vessels qualified for that service not only to vessels otherwis

fied but requires also that when owned by a corporation it m

only be an American corporation but 75 per cent of the sto

be owned by citizens A new factor is thus created the a

ment of ownership of vessels in fact operating in coastal trad

The section contains an important exception however re

certain vessels on the Treat Lakes viz That shipments 

points in the United States partly by rail and partly over th

Lakes may be transported on the Lakes by Canadian vesse

the rat movement includes Canadian rail lines and the ve

water facilities connecting therewith The results of this e

are the continued subject of the bureau sinquiries It pres

abnormal fact that American vessels subject to handicaps r

from our navigation laws including for instance the thre

system and the extra personnel that system entails must 

competition in traffic which is not foreign trade but our own d

trade foreignflag vessels not subject to the laws requirin

watches aboard ship and operating therefore with less p

and correspondingly less expense Whether legislation sh

enacted to correct this condition remains to be determined

The bureau sactivities cover the examination of particula

some of which have been apparent violations in which fines h

Owner

To Pacific coast ports

American Man Line Deltar steamship Co

Dollar Steamship Line Do

Oceanic Oriental Navigation Co AmericanDawaiian Steam

Oregon Oriental Line States Steamship Co

Tacoma Oriental Steamship Co Tacoma Oriental Steamship 

To South Atlantic and Gulf ports

American Gulf Orient Line Tampa Inter Ocean Steams

To North Atlantic ports

Lollar Steamship Line Dollar Stemnihip Co

American Pioneer Line Recoewlt steamship Co

American Gulf Orient Line Tampa Inter Ocean Steams

Panama Far East Line Norton Lily Co

Action by the President involves however local needs an

tions of the interisland trade of the Philippines Further in

tions are in progress not only with respect to transocean 

but also to local conditions that present conditions may be 

duly considered

Great Lakes tradeSection 27 of the merchant marine a

confirms and extends our coastwise laws by further limi

vessels qualified for that service not only to vessels otherwis

fied but requires also that when owned by a corporation it m

only be an American corporation but 75 per cent of the sto

be owned by citizens A new factor is thus created the a

ment of ownership of vessels in fact operating in coastal trad

The section contains an important exception however re

certain vessels on the Treat Lakes viz That shipments 

points in the United States partly by rail and partly over th

Lakes may be transported on the Lakes by Canadian vesse

the rat movement includes Canadian rail lines and the ve

water facilities connecting therewith The results of this e

are the continued subject of the bureau sinquiries It pres

abnormal fact that American vessels subject to handicaps r

from our navigation laws including for instance the thre

system and the extra personnel that system entails must 

competition in traffic which is not foreign trade but our own d

trade foreignflag vessels not subject to the laws requirin

watches aboard ship and operating therefore with less p

and correspondingly less expense Whether legislation sh

enacted to correct this condition remains to be determined

The bureau sactivities cover the examination of particula

some of which have been apparent violations in which fines h
20 TnmTEENTII ANNUAL REPORT UNITED STATES SHIPPIN

been imposed because of extenuating circumstances Our a

had in view preventin such cases becoming precedents and 

encouraging similar violations

The great value of our coastwise trade to shipping prompt

interests on every opportunity to encourage internation

ments tending to break down the protection of these la

methods thus employed are set forth at length in the nint

report p 39 Persistence in this field was apparent d

past year in the efforts informally made to introduce the s

the International Convention for Safety of Life at Sea the 

assigned to which are obviously irrelevant to questions 

coastwise laws

Competitive Transportation Through Canada

The transportation of our foreign commerce should no

direct through ports of the United States and the transpo

our exports and imports between these ports and interior 

the United States should when practicable be by Americ

portation facilities To this end extensive inquiries have 

ducted during the year in continuance of investigations p

commenced and incident also to the joint inquiry conduct

sponse to Senate Resolution 220 adopted May 25 1928 

reference is made in the twelfth annual report p 18

The four departments named in the Senate resolution ac

operated in the collection and examination of available da

conference incident to the proposed report Concurrently 

report of the Department of Agriculture the Department 

and the Interstate Commerce Commission the board su

report separately from the others in response to Senate R

220 both of which were transmitted through the Preside

Senate on January 29 1929 and were printed as Senate D

212 the separate report of the board appearing at page 14

document

The export of American grain through Canada and of 

grain through the United States has been the subject o

study A large part of the export of Canadian grain throu

ican ports is due to natural causes viz navigation on 

Lawrence River closes for the winter long before the expor

for the season is ended and American ports then become 

for Canadian exports during the winter The Canadian Go

has sought to meet this natural handicap by the developme

facilities to the ports of Halifax and St John Nova Scot

ports are open the year round and in order to retain the tr

tion of Canadian exports for Canadian railroads and 

Canadian ports the rail rates to these more distant p
THIRTEENTH ANNUAL RECOUT UNITED STATES SHIPPING M

equalized with rates to much nearer American ports and the

ties are open to American exports

The use of Canadian ports by American shippers is also 

some measure to climatic conditions There is an extensiv

ment of meats and packinghouse products from the Unite

via Canadian ports not because rail rates or shipping faci

superior but because packinghouse products usually requir

eration and the movement through Canadian ports lessens 

cessity for refrigeration en route Whether this movemen

secured for the United States is a problem to be considered 

American commerce if it can be it should be If the C

policy justifies rail rate from the Great Lakes to St Jo

Scotia on a parity with New York notwithstanding the di

much greater the question arises whether shipments of 

house products throu ah New England ports may not be in

Should there not be an adequate development of trunkl

facilities and the maintenance of a rail rate which would se

American export for the New England ports

There is a fundamental difference in the graininspection 

Canada a the United States and while it is not the pu

function of this board to analyze their respective merits n

less to the extent the diversion of American grain to Mont

be due to artificial factors such as Canadian inspection s

and regulations for American grain the problem deserve

receiving the bureau s attention as a problem affecting o

and our shipping

An incident of inspection is ascertaining the percentage o

matter mi cd in the graina process sometimes referre

dockage There is a substantial difference between the p

in the United States and at Montreal in determining the 

In the United States the proportion of the mass consisting o

matter is ascertained with precision by taking samples of 

and separating the foreign matter obtaining its actual weigh

compared with the weight of the sample from which taken 

percentage of dockage to be deducted In Canada how

amount of dockage is dependent solely on the judgment of th

tor This difference in procedure results in a lack of un

in the assessment of dockage at Montreal and in the United 

and it is alleged some exporters deem it to their interest to 

Canadian system and therefore to use the port of Montrea

Dockage in the United States seems to be a bookkeeping 

tion in that a deduction is made from the sales price var

cording to the percentage of dockage fixed but the grai

physically cleansed of its foreign matter In Canada how

spectors are empowered to have the grain physically cleane
22 TIIIRTEENTH ANNUAL nErouT UNITED STATES SHIPPIN

issuing certificates If American grain is to have a standa

fication in the markets of the world that classification oug

be dependent upon the physical movement whether throu

York or through Montreal Nor should it with respect to 

ence in it of foreign matter be subject to uncertainty wheth

be cleaned physically of such dockage as in Canada or wh

foreign matter will remain in it as in the United States T

tices should be coordinated so that shipments through A

ports may not be diverted by such factors

Canadian preferential tariffThis has no reference to the 

Canada to maintain preferential tariff rates with other Stat

British Empire it has been included in the bureau sinves

because imports into the United States from countries ot

Canada may come via Canadian ports with the same free

subject to the same tariffs as if imported through America

whereas imports into Canada entitled to preferential r

granted such preferred rates only when imported through 

river port of Canada direct This was not the Canadian r

recently and the attitude of the two countries was then re

The earlier practice was changed in 1927 with the result 

quantity of imports into Canada via American ports has dim

us shippers will not subject their consignees to the ext

charges resulting from shipment through an American po

recently large quantities of bananas were imported into 

through the port of Boston but their import direct by a C

port saves the merchant a tariff charge of 50 cents per bunch

The fact is emphasized that although American imports 

brought into the United States through Canadian ports 

being surcharged by a tariff rate higher than that impose

ports through an American port the Canadian practice i

ciprocal It is not a question of the abstract rights of eith

try in the premises the question is whether the American 

be continued in the absence of a reciprocal policy on the 

Canada If Canada searlier practice in the matter is res

prob em is solved The value of the American attitude to 

ports is illustrated in the importations of silk into the Unite

The extent such imports enter through Canadian ocean ports 

lows The total importation of silk into the United State

12 months ending ilfarch 31 1927 was 357 59699 and 

amount 117 000 worth came through Vancouver The 

portation for the 12 months ending March 31 1928 was 35

and of this amount 192 000 worth came through Va

The importation of silk through Vancouver and thence by 

rail to eastern United States thus exceeded for the 1928 pe
THIRTEENTH ANNUAL REPORT UNITED STATES sIIIPPING BOA

third of the entire silk importation of the United States 

ports through Vancouver for 1927 were about 30 per cen

total Our imports through Vancouver for 1928 had incre

about 37 per cent of the total an increase of 7 per cent

Our problem is not why twothirds of our sills impor

through American ports direct but why more than onethird 

silk imports enter our country through Canadian ports T

tion for solution is how the onethird thus entering the 

States through a foreign contiguous country may be sec

transit through American ports and for American railroads 

the transportation of our foreign commerce routed through A

ports a larger percentage of the ocean haul of that commerce 

transported in American vessels It is because of the traffic 

of the matter that the bureau sinvestigations in this field are 

The board sinterest in the matter is emphasized by the f

such preferred rates are not limited to imports from othe

of the British Empire they are in one form or another 

corded some other countries namely Colombia Cuba Cz

vakia Denmark Estonia Finland France Hungary Italy 

Latvia Lithuania Luxemburg Netherlands Norway R

Spain Sweden Switzerland Venezuela

Australian tari fregulationsThe diversion of a large 

our exports through Canadian ports is one of the items es

mentioned in Senate Resolution 220 and in our report in r

thereto sent January 29 1929 The loss suffered by American 

portation interests from this diversion is the result of a 

regulation of Australia under which there is added as a 

the value of the goods imported the cost of the rail haul fr

point of origin of shipment to the point of export If the Ca

seaport through which such American exports are sent was re

as the point of export for shipments from the United St

Australia no discrimination would arise for the cost of the ra

would then be added from point of shipment to the American 

the Canadian port as the case might be for the entire d

But when the shipment is through Canada the border line b

Canada and the United States is regarded as the point of 

and the cost of the rail haul to that point is all that is add

in many cases this amount is negligible

The loss of the ocean haul is not the only loss to Americ

terests American railroads lose the larger part of the rai

In the case of a shipment from Chicago When the shipm

through San Francisco the entire rail haul is earned by Am

railroads but when the shipment is through Vancouver on

per cent of the rail haul is earned by American railroads 
24 TIImTEENTrI ANNUAL REPORT UNITED STATES SHIPPIN

shipment is from a point very close to the Canadian borde

instance Detroit Mich the earnings of the railroad for t

ican haul are nothing From the Chicago territory alone 

tnately 450 carloads of traffic destined to Australia moved 

Canada on which the maximum revenue accruing to rail 

171 495 of which American lines received only 415 pe

724153 whereas the entire amount would have been ea

the export moved through an American port

The points presented are not intended to call into que

right of member States of the British Empire to have pr

commercial arrangements between them the shipments inv

not a part of commerce between Canada and Australia 

direct commerce between the United States and Australia 

relation Canada has to the transaction is the physical fac

transportation for a part of the way is through Canadian 

but it has the effect of diverting American freight from 

railroads and delivering it at Canadian ports where fore

receive it for the trans Pacific trip

These Australian regulations had an exception in favor 

dian ports and railroads under which shipments from eas

ada to Australia could be sent by Canadian rail to Vanc

the only cost added for rail transportation was the equ

what the cost would have been had the shipment been made 

Atlantic United States port In September 1923 the A

Government repealed this exception in favor of eastern 

effective January 1 1929 This modification however does 

the real difficulty The important point is that American 

Australia should be placed on a customs parity whether tr

through an American port or through a Canadian port Th

whose repeal became effective on January 1 1929 has 

placed Canadian shipments on such a parity and if the m

recently made had taken the form of extending to Amer

ments the policy applied to Canadian shipments this act

have resulted in the enjoyment by American exports to A

the customs parity to which we have referred but this ha

done

The condition remains that because of an artificial rule 

by a foreign government politically affiliated with Cana

can railroads and American ports are prejudiced with 

the transportation of American foreign commerce with c

ing advantage to Canadian rails Canadian ports and B

sels Whether this results from a rule which is of gener

tion is immaterial When a rule of general application i

be insufficient to meet national rights a revision of or ex

the rule is due Parity should be established to the end t
TIIIRTEENTII ANNUAL REPORT UNITED STATES sIIIPPINO BOAR

can products when imported into Australia shall be subject to i

taxes of that country on a basis as favorable to shipments th

American ports as to shipments of American products th

Canadian ports

Pan American Porte

In the last annual report p 31 reference was made to 

quest of the Department of State for the board scoopera

collecting data etc relative to shipping incident to ports of 

and South America for possible use at the Pan American 

ence held in Habana in February 1928 That conference i

took no action on detailed plans but adopted resolutions pro

for special conferences of representatives of the countries 

Pan American Union to consider 1 The most effective m

for the establishment of steamship lines connecting the d

countries of America and 2 measures for the elimination 

necessary port formalities Similar provision was made fo

tions relating to customs procedure and this has been co

with the two items first mentioned for consideration by th

American Commission on Customs Procedure and Port Form

at a meeting to be held in Washington on November 18 19

commission will be composed of delegates specialists in thei

selected by the Governments of the 21 American Republics

Because of the vital interest of American shipping in the 

involved investigations we e further developed by this bure

ing the fiscal year in extension of the work initiated un

request of the Department of State mentioned above This 

now in progress to the end that facts may be available sho

board elect to present facts and possibly recommendations 

Pan American commission when it assembles in Novembe

Included in the activities of the bureau has been the issue of 

randum to steamship lines and trade organizations intere

South American trade asking for concrete experiences show

need of simplifying and standardizing practices at port

memorandum was sent out also tofrm tm

chambers ofucocomm

South America and without 

in full by The BrazilAmerican published in Rio de Janeiro 

in its issue of June 29 1929 with a request to its readers tha

formation requested be furnished Sufficient time has not ye

to report the results of these activities Other agencies are 

work in this field all having in view adequate data for pres

to the Pan American commission

In addition to the collection of data from the field th

also be examined and compared written rules regulations a

presumptively in force at various ports Preliminary exam

79144293
26 THIRTEENTH ANNUAL REPORT UNITED STATES SUIP

of the written teats are important though not so much so 

experiences reported by vessels Conflicts may appear in 

ments of different ports as printed but in practice t

so enforced that the inconvenience resulting is negligib

other hand provisions and variations apparently negligib

may as applied and enforced be the source of unnecessary 

and hardship to vessels involved and therefore require a

Interest in Trade Routes

Section 7 of the merchant marine act 1920 directs th

investigate and determine from time to time what lines 

established between ports of the United States and s

markets as it deems desirable for the promotion develo

maintenance of the foreign and coastwise trade of the Un

The policies and primary purposes of this section are ex

affirmed by section 704 of the merchant marine act 1923 a

investigations were initiated accordingly

Those activities of the board tinder section 7 consist

maintenance of Government vessels on definite trade route

their sale to private interests are recorded in the report o

chant Fleet Corporation The work of this bureau relate

larly to those problems of interest to privately owned an

American vessels in their efforts to secure a proper sh

foreign commerce This reasonable activity has not alway

encouragement by all Americans interested in the com

volved There have been concrete instances where some 

have been affirmative and energetic in opposition as in 

portation of our jute imports from Calcutta India also 

of the Canada Atlantic Transit Co when the board s

American vessels on the Great Lakes greater transportati

commerce of our domestic commerce

a Southerw ports Special inquiries are in progress w

ence to South Atlantic and Gulf ports and the cooperat

respective commercial organizations of the port cities also 

priate inland cities was sought and assured for the co

data etc While no assurances were implied the possibility 

contracts in proper cases was emphasized and these tra

izations were asked to influence the more extensive use of 

vessels in foreign trade to the end that with greater fre

ronage more frequent and faster service would be encour

this more efficient service in turn would receive higher m

pensationshould postal contracts be obtained Data fo

portant southern port revealed that computed on the basis 

only 24 per cent of the entire ocean borne commerce of 

moved in American vessels and computed on the basis of 
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

the proportion of American vessels was only 18 per cent of th

sailings

b Data concerning linesThe collection of special sh

data has been initiated and is in progress not for general sta

purposes but for use in determining possible action by private 

ers in establishing new or in extending old American service

cluded in this work is data relating to the organization of th

panies also the citizenship of officers and stockholders of Am

corporations involved that it may be seen which of the

citizens as defined by section 2 of the shipping act 1916 t

formation having a bearing also on the application of our co

laws

c Railroads operating ocean vessels It appears that un

Panama Canal act railroads are prohibited from owning or 

ing vessels through the Panama Canal or elsewhere b

points connected by rail transportation unless the consent 

Interstate Commerce Commission is first obtained As the 

operated on such routes can not be operated on other rou

thus approved so long as a railroad is interested they may be 

to a particular service indefinitely lience this bureau has 

gated what ocean vessels are thus involved as they should 

tinguislled from privately owned and operated lines in th

sense in that they are subject to definite commitments tinde

ing provisions of law concerning the route over which they 

operated their availability for general purposes in our ocea

trade is therefore limited The result of this investigation 

forth in a subjoined statement which does not include cases 

to consents for the operation of lake river and harbor cra

vessels engaged in ocean transportation are included I

follows

INSTANCES OF ArPROVALS OF THE OPERATION OF OCEAN STEAMSHIPS I

RAILROADS ARE INTERESTED

1 To Southern Pacific Co For operation of tankers by Associate

for transportation chiefly of products of the oil company from point

fornia to Oregon Washington Alaska and Hawaii 37 I C C Rep 

2 To Southern Pacific Co For operation of vessels by the Atlant

ship Lines in services known as Morgan Line between New Orleans 

York Galveston and New York New Orleans and Habana Cuba from 

Mexico to Galveston and Algiers between Gulf ports and Baltimo

delphia Roston and other North Atlantic ports 43 I C C Rep 

I C C 505

3 To OregonWtohington Railroad Navigation Co For operation 

by the San Francisco and Portland Steamship Co between San Fran

Portland Oreg 34 I C C Rep 165

4 To Spokane Portland Seattle Railway Co For operation 

ships Crcat Northern and Northern Padfic by the Great Northern Paci

ship Co between San Francisco and Flavel Orel 37 I C C Rep 
28 THIRTEENTH ANNUAL REPORT UNITED STATES SHIP

5 To Central of Georgia Railway Co For operation of vessels 

Steamship Co of Savannah between Savannah and Boston 

Savannah and New York 37 I C C Rep 422

G To United Steel Products Co owned by the United State

poration which in turn owns various railroads to operate ste

through the Panama Canal and elsewhere 57 t C C Rep 51

Rep 085

d Private lines bought from the boardThe opera

board of lines established by it terminates with their sale 

citizens and they then become factors in our merchant 

privately owned and operated lines having the possibili

fits however under the special appropriation of 10

ferred to below The vessels involved in such conditiona

to b6 distinguished from privately owned and operated 

the usual sense in that they are subject to definite gua

definite periods of time concerning the route over which 

be operated Hence as information bearing on trade 

American tonnage available for general purposes this b

tabulated the vessels thus involved including the name o

pany and the operation guaranteed in a statement a cop

will be furnished on request

Maintenance of Lines Taken Back

As a factor affecting private operation investigation 

made concerning the effectiveness of the special approp

Congress for the possible protection of private lines so

board against unfair and destructive competition by fo

selscompetition prompted possibly by the board s app

render of all responsibility and by the belief that priva

might abandon the service if energetic competition made 

itable This appropriation in the first instance was 100

Congress authorized the diversion of5000 to other u

million dollars 5000 remain available for the pur

tioned viz To enable the board to operate ships or line

which may be taken back from purchasers by reason of c

or other methods employed by foreign owners or operators 

as the purchaser maintains the service guaranteed or req

is otherwise free from default the line may not be taken b

by consent of the purchaser However each case arising 

necessarily decided on its particular facts

Whether the taking back must be final in the sense that t

ing and financial interest of the purchaser in the service 

permanently eliminated has an important bearing on the 

the provision The language of the appropriation does n

sarily require the permanent elimination of the purchas

the terms on which such lines may be taken back appear 
THIRTEENTH ANNUAL REPORT UNITED STATES SIIIPPING BOAR

cretionary with the board subject to the approval of the Pre

inasmuch as the law provides that no expenditure shall be 

from this special fund without the prior approval of the Pre

of the United States

Investigation by this bureau has revealed that some purc

though grateful the fund is in reserve are convinced its mere 

ence is not protecting them from harsh competition No li

been taken back under the provisions of this appropriation 

its practical operation has not been tested by actual appl

Its potential power however may be emphasized by the 

right to consider whether in a proper case it would relieve 

chaser by taking over the operation temporarily and restor

status quo under the contract of sale when the pending unf

destructive competition is removed

Control of Dlinimum Intercoastal Rates

Representations have been informally made from time to t

persons operating vessels in intercoastal trade that advantage 

result from the control and regulation of minimum inter

water rates by an appropriate governmental agency and p

nary to definite consideration by the board whether legisla

that end will be recommended an investigation has been in

to ascertain facts and also the attitude and views of transpo

interests involved A divergence of opinions has thus fa

presented Some of those who have recommended such cont

their recommendations on alleged uncertainties of perman

operation under the conference agreements from time t

adopted The proposal extends beyond the relations of shippers w

steamship companies involved it is claimed also to involv

tions referred to elsewhere in this report p 32 relative 

effect of intercoastalwater traffic not only on transcontine

rates but also on the commerce of some interior cities as dist

centers No conclusions in the matter have been reached 

board

York Antwerp Rules

Questions incident to commercial traffic documents used 

transportation such as bills of lading have been investiga

considered including the applicability to American cond

The Hague rules referred to more fully elsewhere in this re

30 also the York Antwerp rules in their revised form

The forkAntwerp roles relate to qnestions of general 

In the form promulgated in 1590 the Interstate Commerce 

sion inserted them by reference in the export bill of lad

form of which has been prescribed by that body acting u

provisions of section 25 of the interstate commerce act
30 THIRTEENTH ANNUAL REPORT UNITED STATES SHIP

In 1924 the International Law Association amended 

the 1890 rules and as thus changed they are known as 

werp Rules 1924 The meeting at which they were r

held in Stockholm It was not a

at

conference 

interests if represented at all were inadequately repre

one in attendance was authorized to represent the United 

official designation While the rules as modified by the 19

have not been generally approved in their entirety by 

bodies of the United States nor by the board some of th

tant provisions have been embodied in ocean bills of lad

by private American lines and by the Merchant Fleet Cor

Hague Rules

The adoption of a uniform bill of lading for ocean tran

in foreign trade has been under consideration for some 

proposed rules commonly referred to as Hague rules hav

in view They are the product of an international confe

at Brussels in 1921 While the board has approved in pr

plan to have a uniform bill of lading for ocean transp

has opposed some provisions of The Hague rules and has 

recommended changes in them It has also been oppos

adoption of these rules as an international agreement eith

present or a modified form believing that they should be ad

part of our commercial laws and thus kept subject to a

and development at the pleasure of the Congress of th

States After various hearings and conferences in which t

participated the interests represented concurred in the 

for a proposed bill embodying The Hague rules in a mod

and the bill as agreed upon was introduced in the Seven

gress II R 1220S but was not acted on and therefore 

March 4 1929 A similar bill H R 3830 entitled A b

to the carriage of goods by sea has been introduced in the 

first Congress and is now pending before the Committee 

chant Marine and Fisheries of the House

The National Industrial Traffic League considered this 

legislation at a convention held in November 1928 and 

recommending some amendments it suggested that passa

bill s present form was to be preferred to not having it 

all In March 1929 the committee on commerce of the 

Bar Association held a meeting in New York at which the 

of the bureau of traffic discussed the provisions of the b

referred to and that committee proposes submitting a repo

measure to the American Bar AsNeiation at its annual m

be held in October 1929
THIRTEENTH ANNUAL IIEPORT UNITED STATES SHIPPING BOA

Warsaw Rules

The trend toward standardizing shipping documents is sh

the above items relating to Hague rules and the York A

rules also with export bills of lading elsewhere referred 

this report p 34 New evidence of this trend has appeared 

the year in the form of proposed rules to be known as W

rules which the bureau is now investigating as affecting tr

ocean vessels The Warsaw rules have reference to agre

between vendor and vendee of goods shipped by sea rela

terms of shipment as distinguished from the other rules me

which as component parts of bills of lading relate to cont

transportation These rules relate to c i f shipments and 

define the rights of the parties to the transaction that is 

sales agreements under which the vendor agrees to pay c

surance and freight on the goods sold to port of destination 

tinguished from a sale f o b at port of destination unde

the vendor would be responsible not only for costs etc but 

goods themselves during transportation

The proposed Warsaw rules were initiated by the Intern

Law Association at its conference in Warsaw Poland in 

1928 Their applicability to American conditions requires 

receiving careful examination Whether sales are c i f or 

port of destination has an indirect bearing on our merchant 

in cases of sales or purchases in foreign trade In the lat

the vendor may select the vessel transporting the cargo in 

c i f sales he may not It is obvious it would be to the int

our merchant marine if American importers would make th

chases c i f and have their imports brought by American 

and on the other hand by selling goods f o b foreign 

destination our exporters could select American vessels f

transport

The board has heretofore approved in principle genera

ments through such rules as The Hague rules and the YorkA

rules as instruments for uniform agreements provided they 

voluntary adoption by mutual consent it has expressly reco

opposition to their adoption as law by international agr

The Warsaw rules appear in principle to come within t

class

Ocean Dlail Contracts

Ocean mail contracts in earlier reports of the board have 

erence to contracts promoted under the provisions of sectio

the merchant marine act 1920 All contracts under this 

which had been entered into by the Postmaster General u
32 THIRTEENTH ANNUAL REPORT UNITED STATES SKIPPIN

recommendation of the Shipping Board expired June 0 

contracts have since been made by the Postmaster General u

provisions of Title IV of the merchant marine act 1928 T

mum of compensation under the new law is more definitel

than under the preceding law it varies with different classe

sels grouped primarily with reference to the speed they are 

of maintaining at sea in ordinary weather Information co

the maximum compensation possible is given in the las

Report p 10

Mail contracts under the 1928 act have been made by 

master General with the following persons certifications r

type size and speed of the vessels suitable for the route

tively involved have been made by the board Admiral 

Line American Line Steamship Corporation American 

Line Inc American South African Line Inc Americ

African Line Inc Atlantic Caribbean Steam Naviga

Dollar Steamship Line first contract Dollar Steamship 

ond contract Eastern Steamship Lines Inc Export S

Corporation Grace Steamship Co Gulf Mail Steamship C

Lykes Bros Steamship Co Inc Munson Steamship L

York Cuba Mail Steamship Co first contract New Yor

Mail Steamship Co second contract New fork Po

Steamship Co Oceanic Oriental Navigation Co first 

Oceanic Oriental Navigation Co second contract Ocean

ship Co Pacific Argentine Brazil Line Inc South 

Steamship Co States Steamship Co first contract State

ship Co second contract

Panama Canal Traffic

Investigations relative to traffic through the Panama C

the canal stolls relative thereto have been made during the 

only incident to the merchant marine conference held in W

in January 1929 but incident also to other matters peninc

ing a the proceeding pending before the Interstate 

Commission by transcontinental railroads resulting from in

waterborne competition and having in view the privilege 

ing rail rates for longhaul traffic between the coasts lo

rates for the shorter haul between intermediate points to m

tively compete with intercoastal water rates b the com

midwest cities claiming to have suffered as distributing 

the result of the cheaper waterborne transportation th

canal and especially objecting to this consequence in so 

results from a subsidized service c proposals that 

intercoastal water rates should be Government controlled

The railroads and the midwest cities are interested 

canal tolls increased hoping thereby to lessen the advantag
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

traffic To that end it is urged by this bureau that net ea

the canal should be based on total cost without a deduction 

tary value and include also a reserve account not only for d

tion of working equipment but also for the possibility of 

trophe to the canal itself whether from nature or otherwi

intercoastal lines naturally oppose an increase especially 

light of the canal searnings in recent years covering all o

expenses including interest on the investment

Whether there should be a substantial increase in the ca

bears not only on the relations of our intercoastal shipping 

petition with our transcontinental railroads but also on q

of expediency arising from the fact that more foreiggn ton

using the canal than American tonnage and that increas

rate therefore would be an increase of revenue derived from 

sources in a much greater measure than would be derive

American vessels The report of the Panama Canal Com

for 1928 reveals that the use of the canal by the vessels 

flags is constantly increasing but its use by American v

decreasing particularly in our exports passing through th

to South America and to Australasia The following info

is significant

1 Shipments from the east coast of the United States to the wes

South America throu the canal decreased about 10 per cent in 

pared with 1927 whereas shipments from Europe to the west coast 

America increased about 23 per cent

2 Shipments frrm east coast United States to Australasia decreas

cent while shipments from Europe to Australinsia increased more th

cent and shipments from the east coast of the United Status to the 

generally also decreased

3 It is significant that our intercoastal traffic both eastbound a

bound decreased but shipments from Europe to tlm west coast of th

States increased over 20 per cent and shipments from Europe to 

coast of Canada also increased while shipments from the Atlantic 

of the United States to the west coast of Canada decreased

These statements are based on comparisons of the cargo 

Unfavorable comparisons however are reflected also in a c

son by flags of the number of vessels using the canal Th

also states with reference to tonnage passing through the c

the fiscal year ended June 30 1928 Cargo carried under e

with the exception of that of the United States also show

stantial increases In other words every one of the 22 

flags represented had their tonnage increased but there wa

crease of American tonnage on the contrary there was a d

It is specially mentioned that cargo carried under the Unite

Hag was less by nearly1000 tons or 612 per cent than 

vious year while that carried tinder the British flag the 
34 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPIN

competitor increased by approximately 1600 0 tons o

cent The bureau sinquiries are still in progress

Export Bills of Lading

Activities of the board relative to bills of lading issued 

roads pursuant to section 25 of the interstate commerce a

ing not only the rail haul to ports but also the ocean haul 

exported have included a investigations at different port

to high density compress privileges for shipments under 

of lading b plans were initiated and are in progress to 

railroads encouraging the use of American vessels in such 

lading

a high density compress privilegesAt the instance o

Orleans Cotton Exchange a meeting was held attended by 

ping railroad banking insurance and commercial interest

port to present to the board srepresentatives alleged p

treatment of New Orleans compared with practices enjoyed 

ports viz That cotton moving on export bills of lading 

some ports be high density compressed between the rail 

loading on vessel at some ports thus facilitating such sh

interior points but that this was not permitted on shipments 

New Orleans Investigations are in progress through con

parties interested at the ports and also through the railroa

ested from whom full information is being sought concern

ments issued in such transactions and the procedure th

especially with reference to permitting highdensity comp

This bureau sinquiries involve also the regulations of t

pool cotton conference and the limitations prescribed by 

lations relative to the issue of bills of lading by vessels

The item is a promotional one It has in view securing 

facilities for all traffic to which they may be normally e

the natural direction of the flow of commerce

b Facilitating the designation of American vessels in 

of ladingThe provisions of section 25 of the interstate 

act relate primarily to American vessels but the facilitie

system have been extended in practice to vessels of all fla

merly the Interstate Commerce Commission distributed to 

shipping information relative to American vessels which f

the selection and use of American vessels by exporters t

being that each shipping community throughout the coun

ciently important from the standpoint of the export trade 

have opportunity to ascertain all port and all ocean trans

data essential to the shipment This practice was discontinu

Interstate Commerce Commission several years ago The 

in communication with important trunkline railroads havin
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

supplying ocean shipping information similar to that forme

out by the commission and offering other cooperation wh

extend the use of American vessels in the issue of such bills o

These activities have the interests of privately operate

especially in view

Development of Ports

That part of the work of the board under section 8 of the m

marine act 1020 which relates to the economic and traffic as

the duties imposed by that section namely to promote en

and develop ports and transportation facilities in connecti

water commerce and to investigate territorial regions an

tributary thereto with special reference to encouraging the 

commerce in its natural directionhas been performed thro

Bureau of Traffic of the board as distinguished from activitie

Merchant Fleet Corporation with respect to the Governmes

chant fleet The activities of the Bureau of Traffic have h

marily in view the problems and welfare of the privately ow

operated merchant marine

The ports through which our exports and imports move de

part on rail rates and conditions between the various ports a

rior points and to the end that commerce may move in its 

flow and that ports in their relations to ocean traffic may 

prejudiced in their competitive relations with each other s

authorizes the board to investigate rail conditions rates and 

tions in their relation to ports and to ocean transportation w

privilege of presenting its conclusions to the Interstate Co

Commission for such action as it considered proper This a

its work has extended to the following items pending be

Interstate Commerce Commission these references do not 

to present all the issues involved they present matters of 

interest to the board because of their relation to ports an

transportation

1 An application of the Southern Pacific Railroad Co No 

for leave to fix a rail rate between the Atlantic and Pacifi

less than the rate between intermediate points on the same ro

withstanding the longand short haul clause of the intersta

merce act so that transcontinental railroads may more fully 

with interconstal water rates through the Panama Cana

bureau sinterest in this as an important traffic principle is 

only to its hearing on intercoastal water rates but also to other 

mentioned elsewhere p 32 with reference to Panama Cana

2 A proceeding initiated by the Baltimore Chamber o

merce No 18715 relating to the extent of the differentials 

should be given Baltimore compared with other North A
36 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPIN

ports on export and import rail shipments between Baltim

interior points thus influencing whether ocean shipment

through Baltimore or another port

3 The complaint of the Eastern Terminal Lumber C

various railroads No 22085 alleging discriminating pr

one port to the prejudice of another with respect to the a

in the linehaul rail rate of charges at water terminals for 

lumber from vessel to car in the intercoastal lumber trad

from the question of discrimination between two ports is 

basic question raised by the board in No 12681 whether 

should absorb terminal charges at water terminals where 

pass between vessels and cars

4 A proceeding brought by the Dutton Lumber Co N

alleging discrimination in rail rates quoted respectively fro

dence R I and from other New England ports on ship

lumber to interior points our interest therein being due to 

that the lumber shipped from Providence affected intercoas

traffic as it was lumber from the Pacific coast The mainte

more equitable rates in favor of Providence was ordere

Interstate Commerce Commission

5 Proceedings brought by the Norfolk Port Commis

17483 and by the Norfolk Tidewater Terminals No 20

volved in these is the question whether Hampton Roads 

treated as a unit for rate making purposes to the end 

Chesapeake Ohio Railway Co should be required to quo

rates and extend similar privileges to water terminals at 

Va as extended by it at its rail terminals at Newport New

6 A proceeding brought by the State Docks Commis

21341 to compel trunklike railroads to apply the same 

and other charges and practices to traffic with complaina

terminals at Mobile Ala as are extended other termina

same port And a similar proceeding No 22208 broug

Chamber of Commerce of mobile but involving another 

allegation being that railroads serving both Mobile Ala 

port Miss subjected Mobile to prejudicial treatment by 

in the railhaul rate handling charges of certain commod

imported through Gulfport although similar charges o

commodities are not absorbed in the railhaul rate when 

through Mobile These applications involve principles 

the proceeding commonly known as No 12681 referred to 

7 A situation somewhat similar to the problems pre

intercoastal traffic through the Panama Canal in compe

transcontinental railroads has been laid before the Inters

merce Commission in Dockets Nos 13535 14880 and 1
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BO

monly referred to as the Consolidated Southwestern Rat

These applications involve two classes of competition for th

portation of shipments from trunkline territory to points 

Southwest namely a Competition between allrail shipm

rect contrasted with shipments by rail to North Atlantic po

by ocean haul to Gulf ports thence by rail to destination 

petition arising from the fact that the ocean haul between 

ports and Gulf ports involves sometimes vessels whose rates 

trolled by the Interstate Commerce Commission because th

portation is on a joint rail oceanrail rate and sometimes b

not maintaining such through rates and therefore not contr

the Interstate Commerce Commission but engaging in such t

tation op port to port rates the rail haul at both ends of th

haul being on local rates to and from the ports respective

competition first referred to is akin to the problem elsewh

sented in this report p 32 relating to Panama Canal traf

proceedings here also include contentions by certain cities 

midwest claiming they suffer as distributing centers in their 

to the trade of the Southwest because of the low watransp

tion rate available by the railocean rail shipments around 

on the Gulf coast which are thus promoted as distributing ce

8 Questions relating to the practice of railroads with re

their charges at railwater terminals for wharfage handling 

and other accessorial services I C C Docket No 126S

special reference to traf e regulations and practices relative 

have been investigated and were finally submitted to the In

Commerce Commission on April 12 1929 This case involv

much broader way some of the questions presented in 

Mobile cases referred to above it especially involves the 

from a traffic point of view of permitting railroads to absor

terminal charges in their linehaul rates

Tlue bureau sinterest in this problem has been based on 

portance of shippers along trunkline railroads having the fa

delivering freight to any water terminal at a port on the sa

as at any other terminal at the port so far as rail regulati

rates are involved And conversely that vessels arriving at po

enjoy equal facilities irrespective of the terminal at whi

moor to have cargo shipped to any destination on any tr

railroad with equal facility and at the same terminal cha

from any other water terminal at the same port This p

finds its best illustrations by conditions prevailing at such 

San Francisco Calif and Montreal Canada where trunkli

roads have terminal contacts only with a belt line and the 

is entirely neutral in its relation to all water terminals
38 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPP

REGIONAL ADVISORY BOARDS

There have been created 12 regional groups throughout 

States pursuant to a common plan and for a common 

known as regional advisory boards the name of each havin

indicating the geographical area allotted to it Their pri

pose is the study of problems between shippers and railro

special reference to adequate car service but having in vie

better understanding of transportation problems 

They are calculated to promote the commerce and pro

the country At their meetings large groups of shipp

within their respective areas gather with railroad officials t

transportation problems

Believing these groups to be agencies of potential valu

chant shipping this bureau has corresponded with each 

having in view cooperation on problems incident to throu

ments requiring both rail and ocean transportation T

special value for contacts with shippers using export bills 

authorized by section 25 of the interstate commerce act co

and ocean transportation and from these contacts th

American vessels and especially privately owned America

may be further promoted

BUREAU OF REGULATION

During the year the Bureau of Regulation adminis

board sregulatory functions in respect to the 170 carriers 

state and 249 carriers in foreign commerce of the United S

subject to the board sjurisdiction In the conduct of this 

separate and yet interdependent principal divisions of 

were engaged in as follows

Formal Complaint Investigations

Under section 22 of the shipping act which provide

vestigation by the board following the filing by shippers a

of sworn complaints alleging violation on the part of c

any of the regulatory sections of that statute the burea

istered during the year 14 separate complaints filed on be

individuals and organizations and involving 62 different 

Pleadings were received argument considered and at hea

ducted by the bureau s examiners at various places in th

States witnesses for the contending parties testified under 

cerning the issues raised by the complaints These issues 

the lawfulness of carriers rates and practices under one o
THMTEENTIS ANNUAL REPORT UNITED STATES SHIPPING BOA

the provisions of sections 16 17 and 18 of the shipping act 

example

Whether in respect to transportation from Atlantic to Pacific coast 

the Un ted States the charging of the same rate on shipments delivere

Pacific coast port as for split delivery at two or more such ports 

Pacific coast consignees to undue prejudice

Whether absorption by a carrier In its porttoport rate from New O

Porto Rico on shipments of rice from interior producing points const

unreasonable practice and subjected a port nearer the rice producing 

undue prejudice

Whether absorption of lighterage and other accessorial charges 

making of allowances for drayage at Jacksonville on shipments to 

Baltimore and Philadelphia was unreasonable and unjustly preju

Savannnh

Whether higher rates for the transportation of cotton linters in b

density of approximately 15 pounds a cubic foot than for bales of 

commodity compressed to a density of 22 pounds were unreasonable an

Prejudicial

Whetber carriers refusal to accept hardwood lumber from box cars 

ginal tracks at New Orleans or to absorb the cost of unloading ca

subjects shippers through that port to undue prejudice

Whether for intercoastal carriers to charge given arbttraries over the

coast terminal rates on westbound traffic to Everett Bellingham Oly

Astoria is unjust discrimination between ports

Whether a charge of 10 cents per 100 pounds for aggregating in

shipments at North Atlantic receiving ports from more than one shppe

points of origin is unreasonable and unduly prefers Individual shipp

whose traffic originates at one plant

whether in calculating class rates applicable to automobiles D

Duluth the apportionment of the shipments into hypothetical bo

resulted in exacting rates which were uureasonable and in excess 

ported and on file

Whetber as compared with the respondent carrier srates on other 

ties the rates on roofing material Baltimore to 11Iiami were unjust a

sonable

These and other formal complaint cases ranging wide

importance and scope were given the bureau squasi judicial a

and conclusions and decisions as to each have or shortly 

submitted for the board sfinal determination and orders

Informal Complaint Proceedings

Having practically all of the general characteristics of 

complaints except the verification under oath requisite f

handling under procedure as prescribed by section 22 of the 

act 14 informal complaints alleging violations of regulat

visions of the statute by carriers were considered by the bur

ing the year Misinterpretation of tariff items faulty m

computing rates inadvertencies resulting in overcharges 
40 THIRTEENTH ANNUM nEPORT UNITED STATES SHIPPIN

lading disputes and other controversies transitory or of lon

ing comprised the subject matter of the majority of the

By interview and correspondence the bureau was able 

instances to bring about understanding of the governing tra

tion principles involved and to reinstate amicable relations 

the parties

Section 15 Agreements

In the performance of the regulatory function directed b

15 of the shipping act analysis was made by the bureau of 2

ments between carriers relating to the fixing and regulation 

fares and practices the control of competition the allo

ports pooling or apportionment of traffic earnings and o

jects covered by that section In many instances before s

of the agreements to the board for approval the parties 

quired to remove or change provisions objectionable unde

more of the regulatory sections of the shipping act Muc

revision was effected only after extended effort through 

conference in the bureau s offices with the United States 

foreignflag lines having headquarters abroad In this re

recent decision of the United States Circuit Court of Appea

pagnie Generale Transatlantique v American Tobacco Co 

Itept 2d Series 663 affirming upon appeal the board sr

jurisdiction over foreign incorporated and managed carriers 

in import commerce of the United States has been effect

agreements filed naturally group themselves into what hav

known as tandem agreements between two or more ca

gaged in separate trades and proposing to furnish a thro

nected service and conference agreements between from 

carriers engaged in the same trade and serving the same 

ports Intermediate variations of these two classes of agree

for illustration agreements between nonconference and c

lines and between two conferences respecting matters in th

connecting trades and between two conferences apportionin

territory form a general third class All of the agreem

mitted differ greatly in detail according to the particular 

which they apply and the special arrangements of the lin

thereto and record many important changes in carriers co

relationships throughout the world The total number of 

ments on file as of June 30 1929 is 1054 One hundred a

two of these are conference agreements

Tariffs of Interstate Carriers

The enforcement of the requirements of section 1S tha

by water in interstate commerce within the purview of the 

act file with the board and keep open to public inspection in 
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BO

and manner prescribed by the board their maximum rate

and charges and that no rate fare or charge in excess of 

file shall be exacted except upon approval and after 10 day

notice was another of the bureau smajor activities during 

As by the statute interstate carriers subject to the board s

tory jurisdiction are required not only to file and post t

fares and charges between ports ontheir own lines but 

tion the rates fares and charges for service between their p

points on the lines of any other carriers by water with which 

routes are established this activity of the board include

supervision of many important and extensive relationships 

canal and river carriers are party Also the steady increas

number of tariffs filed for the bureau sconsideration du

year setting up rates and charges by carriers operating i

on the high seas and Great Lakes for use in connection wit

truck lines furnishing transportation inland from and to 

flects the rapidly growing innovation of joint watermoto

portation A most recent example of this form of transpo

covered by tariffs of Great Lakes carriers by water provi

joint through movement of new automobiles driven under t

power by socalled driveaway companies from the au

factories to the water carrier sdocks or on board its vesse

For the 12 months covered by this report 101 freight and 

ger tariffs supplements and indices were filed examined 

mitted to be posted for public inspection on the wharves an

offices of carriers

General

The other main division of the bureau s work embraces 

circularization of steamship forwarding and terminal c

to ascertain their status under the regulatory provisions 

shipping act and 2 the investigation in connection with 

culars and the bureau sspecial docket of apparent or possib

tions of the act that have not been made the subject of a 

complaint The investigations comprising the special do

the most part are conducted as a result of statements mad

bureau by carriers or shippers who do not possess sufficient 

tion upon which to base complaint as provided by the boas

of practice

BUREAU OF OPERATIONS

The work of the I1ureau of Operations has been carried on 

divisions as follows 1 Industrial relations division in

sea service section 2 investigations division and 3 po

ties division

7914429
42 THIRTEENTH ANNUAL REPORT UNITED STATES sIIIPPI

Industrial Relations Division

In carrying out the mandate of the merchant marine ac

to do whatever may be necessary to develop and encourage 

can merchant marine the Shipping Board through the 

relations division of the Bureau of Operations is concerned 

efficiency and welfare of marine and dock labor The boas

est in these matters is twofold Looking first at the large

we may say that under the board spromotional and advis

tions it is interested in marine and dock labor serving the 

merchant marine as a whole Secondly and included w

larger interest is its immediate concern with the personn

Government owned portion of the merchant marine and 

labor handling cargo moved by Government ships

It is obvious that with the gradual transfer of the public

fleet to private American ownership as a result of the 

Board svigorous sales policy the board finds itself concer

and more with marine and dock labor employed in connec

privately owned American vessels During the fiscal year 

board sold all its remaining services on the Pacific and d

year covered by this report it has also disposed of its passe

on the Atlantic This latter transaction takes it entirely out 

passenger service and at the present writing June 30 19

the Government operating but 17 cargo lines four of w

hoped may be sold in the near future It is well to point o

connection that the bulk of all American merchant tonnage 

in overseas foreign trade is owned by private American 

recent figures showing that approximately 53 per cent is 

owned and 42 per cent Government owned

With respect to the board soperation of the Governme

fleet it may be said that the friendly relations established a

tained in past years with the marine personnel have been 

by the Merchant Fleet Corporation and agreements with 

licensed deck and engineer officers have either been renew

main unchanged

One of the board soutstanding interests in connection wit

and Ionshore labor is the question of safety during hour

ployment Afore and more is it coming to be realized that 

vention of accidents is just as important in the developme

merchant marine as in the development of large industrie

The nationwide campaign waged in recent years to redu

from this cause has embraced virtually all departments o

endeavor including the various branclies of shipping At t

coming annual congress of the national Safety Council to 

in Chicago in September 1929 it is expected that more th

business executives representing 5companies these in 
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

ploying more than 10000 workers will meet to discuss p

of safety in industry The marine section including shi

ship operators shipbuilders longshore interests and allied a

will have a prominent part in the deliberations

Under the longshoremen sand harbor workers act which 

a law on March 4 1927 the United States Employees Comp

Commission was charged with the duty of investigating sa

visions and causes of injuries and of malting recommenda

Congress as well as to employers and carriers At New Y

New Orleans and at Texas and Pacific coast ports voluntar

codes for longshore work have been adopted by the emplo

terests in cooperation with organizations of employees 

ton a voluntary code has practically been adopted and the m

also receiving consideration at other ports of the United Stat

a large and vital question in which the Shipping Board is in

not only by reason of its preeminence in the operating field 

because of its broader sphere of activity in promoting a p

owned American merchant marine The whole question o

comes directly within the board sefforts to reduce the cost o

ing ships under American registry

The board sAnnual Report for the fiscal year 1928 p 3

mented on the friendly and cooperative spirit displayed by 

American owners and operators toward the men serving 

ships Nothing has since occurred to indicate any change 

commendable attitude Private operators who have taken ov

ping Board lines have generally followed the board s wa

and working conditions

During the period under review the question of the adop

standard uniform for officers of the American merchant ma

been given serious consideration A committee composed o

sentatives of officers organizations steamship owners and 

chant Fleet Corporation has been appointed to work with the 

can marine standards committee in developing the matter 

many valuable suggestions thus far made as to style and insi

be given full consideration by the committee when formul

final recommendations All angles of the subject are being 

and while considerable progress has been made it is yet t

to state just what attitude will be shown toward the pr

private American owners and operators

While the immediate administration of longshore activitie

nection with the loading and unloading of Shipping Boar

has been lodged with the Merchant Fleet Corporation since 

1924 the board retains an interest in the general subject of in

relations between employers and the men who work on the s

handle the cargoes As above indicated this interest sprin
44 THIRTEENTH ANNUAL REPOP T UNITED STATES SHIPPI

the Shipping Board spromotional and advisory functions 

exercised in many ways to maintain develop and enco

whole American merchant marine irrespective of whether i

lines and ships are owned publicly or privately

The established principle of collective bargaining has bee

in its observance by owners and employers a review of 

indicating that agreements were reached in all cases arising 

associated groups of employers and employees engaged in d

transportation of American cargoes In most instances the

ments were simply renewals of instruments that were 

expire

These amicable industrial relations indicate a sound econ

dition and constitute a favorable element in the developme

Nation smerchant marine In the transfer of the board s

private ownership the healthy labor conditions thus show

are to be looked upon as an intangible asset of real value 

can citizens directly interested in the development of the 

marine and the expansion of foreign trade It is a cond

obviates delay and makes for quick turn around and 

source of satisfaction to shippers consignees stockholder

others concerned With service the keynote of modern tr

tion and quick turn around the greatest aid to service 

tractual security of sound industrial relations forms a firm 

tion on which to build up our foreign trade and plan for co

developments of the future

Sea Service Section

During the fiscal year 1929 the sea service section of the 

relations division first organized in 1917 has maintaine

offices in 12 ports of the united States as follows Bos

York Philadelphia Baltimore Norfolk Savannah New 

Mobile Galveston Houston Portland and Seattle

In response to many requests from shipowners ship 

and commercial bodies a branch office of tine sea service st

established at Houston Tex during the fiscal year Th

of seamen subsequently placed at this point has amply jus

action taken

For the purpose of conducting physical examinations 

cants the New York Baltimore New Orleans and Hous

have their own medical officers and examining equipment 

stations the examinations are conducted by local represen

the United States Public Health Service

These physical examinations while carefully conducted a

rigorous as to handicap the merchant marine in securing c

men Following the best modern business practice as fou
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPLNG BO

large commercial organizations the sea service section in co

these examinations aims simply to protect American merch

ping from the physically defective and those suffering fro

some and contagious diseases By refusing to employ a

who are physically unfit the service achieves three desirable 

First it maintains a high physical standard which in turn 

to high standards of efficiency second it protects the marine 

nel against the dangers incident to close daily association w

sons suffering from communicable diseases in the third plac

vents numerous suits for damages on the part of unscrupu

men who with an idea solely of monetary gain deliberat

represent the history of their physical defects and ailment

During the past year the sea service section has coopera

the United States Public Health Service in carrying on 

paign to combat venereal disease among seamen At the 

of the Surgeon General arrangements were made whereby m

for prohphylaxis were placed aboard all Shipping Board 

active service together with complete instructions as to u

ports thus far received from shipmasters indicate that exc

sults have been obtained in this campaign against a form o

which accounts for approximately one fifth of all the cases in 

hospitals

The chief work of the sea service section is to man the shi

American merchant marine with American citizens This w

been given added significance by the Jones White Act se

of which stipulates that an increasing proportion of the 

American mailcarrying ships shall be citizens of the United 

The act provides that

from and after the enactment of this act aad for a period of fear ye

each departure from the United States of a vessel Implored in o

service under this title onehalf of the crew crew including all 

of the ship other than officers shall he citizens of the Unitcd S

thereafter twohirds of the crew as above defined shall be citizen

United States

This must be looked upon as a far sighted provision fo

perience has shown that unless the American merchant m

manned by Americans the country smerchant shipping will 

of emergency inevitably sufrer through the desertion sabo

treachery of alien seamen

The Shipping Board ssea service section is the only age

is actively engaged in this work of Americanizing the m

marine During the fiscal year the records show that 889 

of all seamen placed through the 12 branch offices of the sea 

section were American citizens It may be well to add tha

all other seamen placed in positions by the sea service sect
46 TIIIRTEENTTI ANNITAL REPO T UNITED STATES SHIPPIN

already declared their intention to become citizens in othe

had taken out first papers

An important part of the sea service section sAmerica

program is its work for American boys who wish to follow 

Americans between the ages of 18 and 23 of good health an

who show a sincere desire to become seamen are placed abo

as deck boys and taught the fundamentals of seamansh

competent instructors at the same time receiving 25 pe

for their services As they gain proficiency they are adv

higher ratings many of them becoming officers During t

year the sea service section placed 1466 of these boys on A

ships It is believed that this work continued year after 

an important bearing on the future of the American m

marine

The excellent work that is being performed by the se

section was recognized in a resolution adopted by the 

National Conference on the Merchant Marine on January 

as follows

Resolved That the Second National Conference on the Mercha

Indorses the efforts of the Shipping Board through its sea servic

to promote in a practical way the Americanization of crews of vess

ing to the American merchant marine and urges upon Congress th

nance of this important agency of the Shipping Board as an aid in 

ing up of a real American merchant marine privately owned and 

pursuant to the provisions of the merchant marine act of 1020

The following table shows the total number of men p

positions by the sea service section during the period from 

1928 to June 30 1929
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

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Investigations Division

The investigations division of the Bureau of Operations 

miscellaneous matters falling within the jurisdiction of t

man of the board but lying outside the scope of the other 

of the bureau Its inquiries are usually of a technical or e

nature and cover a wide range

Safety of life at seaDuring the year the preparatory 

the International Conference on Safety of Life at Sea 

tinued under the Shipping Board sgeneral committee the 

of which afterwards served as the board srepresentativ

United States delegation to the conference in London 1lro

technical work involving subdivision of ships necessitate

the British proposals worked out by naval architects fo

types of American merchant vessels Plans were obtained 

than 50 ships including the most recent as well as older A

vessels for which flooding curves were calculated and su

charts prepared showing in each case what if any structura

would be necessary to meet the British proposals

For the study of lengths of ships holds and sizes of hatc

ions were obtained from as many ship operators as pract

order to reach a balance between smaller holds for better su

and safety and dimensions large enough to stow and eco

handle the cargo

In order to develop another phase of this work the 

Board during the year authorized a series of experiments 

quently conducted for the board by Dr W F Durand of 

University to test the permeability of various commod

later on a further series of tests to reach a more accurate d

tion Of the volume of water that could enter a vessel s m

compartment In the latter experiments conducted jointly 

Navy Department the machinery spaces of two Shipping B

sels were flooded and the observed volumes of water checke

calculations

While the international convention as signed on May 

will when ratified come into effect only for vessels whose 

laid after July 1 1031 there are sound reasons why all sh

from now on should conform to it In order to facilita

reference by persons interested in new construction the i

tions division has arranged to publish a complete ana

index of convention requirements relating to ship construc

lifesaving appliances

Other international conferences Inaddition to the confe

safety of life at sea the following international conferen
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

attended by representatives of the Shipping Board dur

fiscal year

Meeting of the editorial committee for the revision of the internatio

of signals held in London beginning October 16 1928 By the end of 

a large amount of work haJ been completed including nine technica

of the code which were sent to this country for examination and 

by the Treasury war Navy Commerce and Agricultural Departm

Federal Radio Commission and the United States Shipping Board

Meeting of the experts committee of the League of Nations for th

tion of transport statistics held in Paris January 28 to February 8 1

Loadline prospectsThe act of Congress approved M

1929 to establish load lines on United States vessels eng

foreign trade is to take effect September 1 1930 before wh

the Secretary of Commerce will formulate the necessary reg

as provided for in the act

It so happens that the loadline committee of the British B

Trade is now June 30 1929 concluding its labors and is e

to make its report and recommendations some time during the 

summer

The fact that the two leading maritime nations will thus b

ing up loadline regulations at the same time has led to a m

to hold an international loadline conference at which an effo

be made to harmonize national viewpoints and reach a sat

international agreement on this important subject

Present indications are that a call will be issued for 

conference to be held early in 1930

Vessels engaged in the coastwise and intercoastal trade 

United States and vessels on the Great Lakes are not affecte

act of March 2 1929 It is expected that Congress will 

the matter of establishing load lines for these vessels follow

receipt of a report on the subject from the Secretary of Co

requested in Senate Resolution 345 agreed to on March 

Consular reportsThe State Department sconsular report

tute one of the board smost valuable sources of information i

to foreign shipping conditions Written on the spot by tra

servers who possess unusual facilities for acquiring info

they embody the latest and most authentic shipping data ob

During the past year as the result of conferences betwe

Department officials and represenatives of the Shipping 

Bureau of Operations an arrangement was perfected whereb

consular reports will embrace several additional lines of info

that will render them still more valuable as media of co

shipping and trade data from all parts of the world
50 THIRTEENTH ANNUAL REPORT UNITED STATES STEPP

Landgrant rates Mention has been made in previou

reports of the refusal of certain common carriers to acco

grant rates on rail shipments of property belonging to the 

Board and Merchant fleet Corporation A considerable p

difficulty with reference to equalizing rates on shipments 

land grant lines arose out of the fact that in form such a

obligated the carriers to equalize rates on shipments ma

Quartermaster General The form of this agreement has 

amended so as to obligate these carriers to equalize rate

transportation of all property shipped for the account of th

Government

There are about 200 equalization carriers and about one 

these have signed the new form of agreement As eviden

improvement in the situation the Quartermaster Genera

Army advises that no carrier has as yet refused to execute 

form of agreement

Second National Conference on the Merchant ilfarineTb

tigations division handled much of the preliminary work in

the Second National Conference on the Merchant Marine 

Washington D C under Shipping Board auspices on Ja

and 24 1929 Conference committees were appointed as fo

Reduction of differential between shipbuilding costs here and ab

Methods of increasing patronage for American ships

Marine insurance

Mail contracts

Discri hinating duties in indirect trade

Extension of coastwise laws to the Philippines

Government aid to American ships not benefited by mail contrac

Panama Canal tolls

Under a resolution adopted by the conference these comm

to transmit their final reports to the Shipping Board U

receipt of a sufficient number of committee reports to war

action the board under the terms of the resolution will t

a call for another conference to consider the committee reco

tions

Miscellaneous work undertaken during the year by the i

tions division included the compilation of a list of marine 

to American flag vessels since the year 1900 an investigatio

request of private steamship owners into the possibility of 

substitute for grain alcohol in marine compasses a study 

and bridge heights in connection with a proposal to lim

heights by international agreement and the collection of da

loading and unloading of cargo with particular reference to 

lengths of long articles maximum dimensions of bulky 

and weights of heavy articles handled by vessels of the A

merchant marine
TIIIRTEENTII ANNUAL REPORT UNITED STATES SHIPPING BO

Port Facilities Division

Domestic port sectionAs in previous years the work 

force has been carried on in conjunction with the Board 

gineers for Rivers and Harbors War Department in conform

the provisions of section 8 of the merchant marine act of 192

During the fiscal year three separate lines of activity were 

by the domestic port section 1 Work on the series of 

known as the port series made up of studies of the physic

mercial and economic features of more than 70 leading port

United States and its possessions 2 a comprehensive s

transportation conditions on the Mississippi and Ohio River 

with special reference to the growing importance of thew 

waterways as arteries of commerce and 3 a miscellaneous 

investigations of port terminal and shipping charges inc

practical study of foreign trade zones or free ports custo

areas found in some of the leading seaports of Europe an

for establishment in the United States

In addition to surveys along the lines indicated it has 

necessary to revise the earlier studies of American ports som

data having become obsolete Among the reports revised du

year were those on Boston 1llass and Pensacola and Jack

Fla Resurveys were also instituted in the case of Mobile 

and Tampa Preparatory work was begun on the revision 

reports on Los Angeles San Diego and San Luis Obispo 

the volume entitled Transportation on tire Great Lakes

During the year the cooperation of the Philippine gov

and the Bureau of Insular Affairs of the War Department 

cured in making an investigation into port conditions in the 

pine Islands Work incident to the compilation of this rep

well under wav at the close of the fiscal year

The following reports were published and distributed dur

period covered by this report

PORT SERIES

No 1 The Port of Portland Me revised edition

No 6 Part 2 the Port of IIouston Tex revised edition

No 18 The Ports of Southern New England

No 22 The Panama Canal and Its Ports

MISCELLANEOUS SERIES

No 1 Port and Terminal Charges at United States Ports

No 2 Shipping Charges at United States and Foreign Ports

At the close of the fiscal year the following revised edition

at the Government Printing Office in process of publication

No a The Port of Boston Ilass

No 3 Part 2 the Port of Pensacola Fla

No S The Port of Jacksonville Fla
52 THIRTEENTH AN IAL REPGDT UNITED STATES SHIPP

The following table shows the publications upon which 

in progress at the close of the fiscal year with the perc

completion of each

Serial

I

No of subject 

volume 

23

Bmised reports

2 The Port of BostonMass

3 Pt 1 The Port of MobileAla

Pt 2 The Port of Pensacola Fla

0 Pt 1 The Port of Galveston Tex

Pt 3 The Ports of Texas City and Corpus Christi

8 Pt 1 The Port of Jacksonville Fla

Pt 2 The Ports of Miami and Tampa Fla

13 The Ports of Los Angeles San Diego and San Luis

Miscellaneous series

3 Foreign Trade Zones or Free Ports

Transportation series

2 1 Transportation in the Mississippi and Ohio Valleys

In carrying on its work during the fiscal year it became 

for the port facilities division to conduct special field surv

following points Mobile Ala Jacksonville Dliami P

Tampa and Fort Lauderdale Fla Pittsburgh Pa Clev

Cincinnati Ohio and Huntington V Va

Special reports and articles were prepared during the 

response to requests received from port bodies shipping c

editors of periodicals chambers of commerce and univer

information on various phases of port practice and c

shipping

Foreign port sectionThe foreign port section of the p

ties division cooperates with the transportation division o

partment of Commerce in conducting studies of foreign 

allied subjects At the close of the fiscal year the section 

pleted reports on the port of Hamburg Germany includin

and Cuxhaven and on the port of Liverpool England 

Birkenhead and Garston These studies Nos 1 and 2 res

in the foreign port series will be available for distribut

early date They are designed to supply authentic inform

garding each port sphysical facilities its organization and 

charges and regulations governing the movement of ships a

water and rail communications commerce and hinterland 

be fully illustrated with photographs diagrams and map

The first volume of the series that on the port of Ham

tains in addition to its other material a discussion of th

Original volume

The Parts of the Philippine Islands
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BO

types of German free port zones and the industrial opera

mitted or prohibited therein The free port zone at Ham

been given special treatment The commerce of the po

complete exposition of the movement of commodities by 

origin and destination is shown in a manner comparable 

Shipping Board scompilation of trade statistics for Americ

The second of the foreignport volumes that on the port 

pool is similar in scope to the report on Hamburg and is 

illustrated It contains a complete description of the org

of the port authority its financing and other pertinent info

Special attention has been given to the handling of good

quays by master porters a system peculiar to Liverpool 

description of the Manchester Ship Canal and other trans

routes inland and overseas is included

Care has been exercised to make these reports accu

authentic All data have been checked in the field by memb

foreign port section and local port authorities have exten

cooperation in order to assure accuracy

During the fiscal year this section also completed a dir

foreign bunkering stations Bunkering facilities at all fore

at which ocean vessels can be accommodated are describe

directory the first section of which is devoted to coal bunke

the second to fuel oil stations In addition to the name an

ality of the owners and operators of the various stations the 

includes information on code addresses kinds of fuel a

storage capacity and supply normally maintained ber

pacity with depth of water alongside methods of delive

on board with speeds of handling extra costs involved fo

in stream and for trimming and the notice ordinarily req

the station In the fuel oil section similar information is gi

additional data as to the tankage of the companies and s

supply of oils

The directory is illustrated with sectional maps showing 

tion of the various stations and is arranged by countries a

so as to be self indexing

Fuel prices because of their fluctuation have been om

the section has arranged to keep currently advised as to p

order to be in a position to furnish such information upon 

from interested parties

The joint grogram of the port facilities division and the 

ment of Commerce also includes investigation of and re

minor foreign ports For example a report on the minor 

the British Isles containing a brief account of about 40 Br

Irish outports is in process of completion and will he ready 

lication during the fiscal year 1930
54 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPI

The survey of American cargo handling methods mention

two previous annual reports was again held in abeyance d

fiscal year pending the completion of an investigation by th

ment of Labor an investigation that was practically com

June 30 1929 in so far as field work was concerned As so

Labor Department sfinal report is rendered the foreign po

will proceed with this assignment Meanwhile data have 

lected from various sources for the revision of the bulletin o

of ship cargoes published by the Department of Commerce 

The foreign port section was engaged toward the close of 

in compiling two volumes on South American ports the f

clude Rio de Janeiro Pernambuco Santos Bahia and Rio 

do Sul Brazil the second to be devoted to the River Plat

Buenos Aires Montevideo La Plata and Rosario with 

describing Bahia Blanca These reports will follow the sam

form as the studies of Hamburg and Liverpool Assembly 

material necessary translations and initial work on the p

had been completed by the end of the year

Since its inception the foreign port section has concen

efforts on collecting foreign port data from all parts of th

It is now in possession of the latest obtainable information o

against ships and goods and physical facilities and cond

practically all important foreign ports Arrangements w

pleted during the year to keep the section currently advised 

ing world port matters through the foreign representative

Shipping Board sMerchant Fleet Corporation the Depar

Commerce and the State Department sconsular corps

Many special reports were compiled during the year f

Government departments business concerns and individuals 

information concerning ports in practically every quarte

globe

BUREAU OF CONSTRUCTION

The Bureau of Construction has been during the past fis

largely concerned with the further development of the Die

version program authorized by the act of June G 1920 h

view the installation in vessels belonging to the Governme

ternalcombustion engines and other changes necessary to 

them into modern motor ships

As more fully explained in the twelfth annual report of th

p 45 this program consisted of three parts under which g

12 3 and 3 vessels respectively were converted The first 

the program was completed in March 1923 but readjustm

machinery and improvements due to developments in op

were carried into the fiscal year 1929 These matters were 
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

concerned with guarantees under machinery contracts The 

sels at the end of the fiscal year 1929 are in successful ope

the trades to which they were allocated

During the fiscal year 1929 the contracts for conversion 

steamers Courageous Triumph and Deftanee into Diesel 

motor ships were completed at the Federal Shipbuilding Co 

Navy Yard and Norfolk Navy Yard respectively and all 

cessful sea trials as follows

Motor ship Couragcou von December 15 1928 from New York

Motor ship Defiance on March 23 1929 from Norfolk

Motor ship Trianiph on April 12 1920 from Boston

The three vessels were allocated upon completion of tria

American Pioneer Line operated by the Roosevelt Steams

oil the route between North Atlantic ports and the Far Fas

Panama Canal

These three vessels differ from all others in the pro 

the machinery consists of four Diesel electric generators 

main propulsion electric motor in each vessel whereas all t

vessels have a single internal combustion engine directly c

to the propeller shafting and are maneuvered precisely the 

the steam engine viz by direct control at the engine In th

Diesel electric drives the engines are not maneuvered but a

ments of ship are made directly with the main electric moto

can be started stopped reversed and regulated either by sig

the bridge or by direct control from the wheelhouse entire

pendent of the engine room personnel

The extended program for the last eight vessels to be con

motor ships was briefly mentioned in the twelfth annual r

the board p 16 giving the names of vessels selected and a

of main machinery which was contracted for

During the fiscal year 1929 additional contracts were ent

for auxiliary equipment and outfit necessary to complete 

gram and contracts for installation were made with the f

shipyards for the installation work on thovessels and in the 

named

1928

Sept 24 Motor ship Galveston Marcland Dry Dock a

Sept 26 Motor ship Oldham Maryland Dry Dock Co 

Oct 22 Motor ship Vcw Oricanx Federal Shipbuilding Co 

Oct 23 Motor ship Wichita Federal Shipbuilding Co 

Oct 20 Motor ship City of EUrood Newport News Shipbuilding

Dry Dock Co 

Oct 20 Motor

Co

ship Ward Newport News Shipbuilding Dry Doc

Oct 30 Motor ship Pottcr Maralaud Dry Dock Co 

Nov 19 Motor ship Jeff Davis Maryland Dry Dock Co 
56 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPIN

Three of these installation contracts were completed du

year and after successful sea trials the vessels were placed in 

sion in regular established routes as follows

The motor ship Galveston equipped with McIntosh 

5cylinder 4cycle doubleacting mari ietype of main engine 

brake horsepower was placed in commission April 13 1

allocated to the American Pioneer Line operated by the R

Steamship Co between New York Baltimore and Australia

The motor ship City ofFluood equipped with Busch Sulz

inder 2cycle single acting marine type of main engine 

brake horsepower placed in commission June 11 1929 and 

to the American Pioneer Line operated by the Roosevelt S

Co between New York Baltimore and oriental ports

The motor ship New Orleans equipped with Ifooven 

Rentschler 4cylinder 2cycle doubleacting marine type 

engine of 4000 brake horsepower was placed in commiss

26 1929 and allocated to the American Pioneer Line operat

Roosevelt Steamship Co between New York and Australian 

Work on the five remaining vessels is in progress and it is 

the program will be completed during November 1929

The total commitments including administrative overhe

ing

5

the Diesel program entered into during the fiscal year a

869 77 18

The expenditures from the inception of the Diesel pro

June 30 1929 aggregate 23150 018 88 This total include

istrative overhead extras incidentals etc

The vessels so far converted to motor ships have been th

of much interest both in this country and abroad due to th

tude of the program and the diversity of equipment whic

wider field for research and comparison under one managem

has heretofore existed Aluch constructive data has been acc

from observation of the operation of these vessels many 

defects in design in the equipment corrected and the greate

tunity in the history of ipternalcombustion engines in th

States afforded the manufacturers to develop high class ma

of large powers

The Monticello and Mount Vernon

Mention was made in the twelfth annual report p 49 

the proposed reconditioning of the exGerman steamers n

Monticello and Mount Vernon for which the independ

appropriation for the fiscal year 1928 provided funds to th

of 2000 to be incremented by tin amount not 

10000 from the construction loan fund Bids were 

covering the reconditioning of both these vessels and wer
THIRTEENTH ANNUAL REPORT UNITED STATES SIIIPPING BOAR

and opened in New York on October 9 1928 These bids 

from 5800 0to 9638 000 per vessel

During the time elapsed between the invitation for bids a

receipt of figures the board s North Atlantic passenger 

known as the United States Lines was advertised to be so

inasmuch as provision was made that prospective purchasers 

include in their bids prices for the steamers Montice7lo and 

Vernon the figures received for reconditioning were made av

to bidders for their guidance in the placing of bids

It developed that the most advantageous bids received 

United States Lines and upon which sale was made did not 

an offer for these two vessels The sale of these lines leaves 

senger service in operation by the board so there is no ob

reconditioning these vessels

Construction Loan Fund

During the fiscal year advances were made to the America

2

Steamship Corporation on the steamship Virginia in the am

691 500 thus completing the loan made in 1928 The 

amount loaned on this vessel to completion was309 00

It was pointed out in the twelfth annual report of the bo

the fiscal year ending June 30 1928 that the constructionloa

was increased by the merchant marine act of 1928 from 1200

to 250 00and the loan provision for the benefit of const

or reconditioning of vessels increased from two thirds to 

fourths the value of the work to be performed and othe

liberal provisions in the discretion of the board It becam

mediately evident that the act added stimulus to the shipb

activities of the Nation as several applications for loans were 

immediately made upon some of which favorable action was 

by the board during the fiscal year after the usual investig

had been completed

During the fiscal year applications for loans in aid of co

tion or reconditioning of vessels were received and action take

them as follows

1 American Line Steamship Corporation A loan agreeme

executed with this company on October 7 1928 providing for 

of threefourths of the cost of construction not to exceed 520

of the steamship Pennsylvania a passengerandcargo ves

20700 gross tons and 18 knots speed and it sister ship of the 

ship Virginia upon which loan was previously made W

this vessel is well under way at the Newport News Shipbuild

3

Dry Dock Co Advances made on loan to June 30 1929 

000

79114 297
58 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPP

2 Grace Steamship Co A loan agreement was executed 

company on January 8 1929 providing for a loan of th

of the cost of construction of a combination cargo and 

vessel

2

of 14300 tons and 18 knots speed The amount o

454 70 Advances made on this loan to June 30 

780 00 This vessel is being built at the New York Sh

Co at Camden N J

3 Straeban sSouthern Steamship Co Two loan a

were executed with this company on February 4 1929 in th

of 13375 and 12415 in aid of reconditioning and 

the steamship Georgian and steamship Floridian re

These vessels were purchased from the board and were fo

steamship Ice King and steamship Muscatine built for re

cargo Total advances were made and work has been co

these vessels They are now in service between Sout

ports and Europe

4 The Agwi Navigation Co Ward Line Two loans 

cuted with this company on February 8 1929 in aid of c

of two firstclass passenger and cargo vessels of 15000 to

knots speed The amount of each loan is to be threefou

cost of one vessel or3262 500 No advances were mad

loans to June 30 1929 Construction is progressing rapid

vessels at the Newport News Shipbuilding Dry Dock C

5 American South African Line A loan was executed 

company on May 22 1929 providing for a loan of three 

the cost of construction of a combination cargo and passe

of about 9400 dead weight tons and 13 knots speed T

of loan is1350 00 No advance was made on this loan 

1929 This vessel is being built and fitted as a Diesel m

by the Sun Shipbuilding Co

6 The Export Steamship Corporation Four loans hav

thorized by the board to this company subject to final app

to be in the amount of three fourths of the cost of constr

proposed combination cargo and passenger vessel of app

9400 dead weight tons and 14 knots speed

Applications considered and pending at end of the fisca

from the following

1 Dollar Steamship Line Reconditioning of four vess

2 Oceanic Steamship Co Matson Line New cons

two or three vessels

3 Colombian Steamship Co Three combination pass

cargo vessels Completion of loan depends upon applican

mail contract
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

4 Leathern SmithNacco Steamship Co Inc Conver

Shipping Board vessel to be purchased into self unloadin

cargo carrier

5 Coamo Steamship Corporation New York Porto Rico 

ship Co One combination passenger and cargo vessel to 

as steamship Coamo

6 Flood Lines Inc Preliminary application for recond

and Dieselizing a steamship recently purchased from the boa

7 United States Lines Inc While no formal applica

loan has as yet been made by this company it is mandator

the contract of sale of the United States Lines that the pu

build with the aid of the construction loan fund two fi

passenger liners to operate with the steamship Leviathan p

they meet the approval of the board and the Navy Dep

Preliminary plans for these ships are under way

The activities of the construction loan fund from ince

June 30 1929 are as follows

Total amount loaned on vessels which have been completed repre

senting G4 loans made to 9 different companies in the aid of

construction of 15 vessels and two conversion lobs 1

87

Total amount advanced on loans on 2 vessels not yet completed 

aggregated 318861 68

The activities of the fund during the fiscal year 1929 

follows

Total of all payments from construction loan fund on ac

count of loans 2

67

mount credited to construction loan fund 93863874

cluding repayments on account of principal of outstandin

Balance of cash in fund July 1 1923 735584

Deposits

Receipts from sales prior to July 1 1923 3266 M7

Receipts from repayments of loans 1 306 131 67 4 57

withdrawals

Transfers to Dieselfund 7500 0000

Loans account of construction andor con

versions 6 728 790 00

Balance of cash in fund June 30 1929

75 92

14 22

61 69

1 Tot including cash In amount of147943 33received during fiscal year 

Interest on and in liquidation of securities from sales on deposit in construction 
60 TUIRTEENTII ANNUAL REPORT UNITED STATES SHIP

Engineering Development Program

The Congress through the independent offices approp

for the fiscal year 1930 included in the United States 

Board Merchant Fleet Corporation appropriation th

500 0 to cover a program to be carried out by the bo

as the Engineering Development Program

Much preliminary study was devoted to this prograul 

fiscal year 1929 the object being to enter into investigatio

search of new methods of shipbuilding and propulsio

improvement of existing methods and various studies to 

only the engineering features but also economics in other 

operations of vessels

The purpose of this program will be to make available 

ship operators the results of this Government research 

that they may adopt such methods as are proven accep

thereby tend to reduce the operating cost differential betwe

can and foreignflag vessels caused by our bigher capita

and higher labor rates

It is obvious that no private shipowner at this time co

take a program so ambitious and it therefore seems ap

that a Government agency such as the Shipping Board sho

a research program with a view to helping the merchant 

as well as the shipbuilder

The preliminary work accomplished during the fiscal 

consisted largely of model basin investigations of hull 

peller efficiencies of existing vessels owned by the Governm

will later be made the subject of direct comparison with sta

tion trials of the actual vessels The data thus obtained w

information for further research looking toward higher 

in operation and in fact there are already indications th

heretofore unknown will be realized

The board has proceeded cautiously thus far with this w

ferring to have the counsel and advice of eminent experts 

neering methods before deciding on a fixed policy Much 

tive advice and criticism of proposed methods has this 

tained from expert sources which in most cases has be

gratuitously and in a spirit of cooperation in the boas 

lems The complete program had not been mapped out at 

of the fiscal year 1929

Section 23 Construction Bounty

The provisions of section 23 of the merchant marine 

have been a construction bounty in favor of Americanbu

in that certain income taxes have been waived when the c

invested certain amounts in the construction of new ve

type and kind of which were required to be approved by t
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

The taxes thus waived under certain circumstances have b

plied to two groups of cases namely a taxes on earnings 

sels operating in foreign trade when the taxpayer invests 

ship construction an amount equivalent to three times the 

of the tax involved or b taxes on profits arising from t

of vessels when the taxpayer invests in new ship constru

amount equivalent to the total proceeds from the sale of th

involved To facilitate the application of the provisions of 

23 the board and the Treasury Department on June 13 1

veloped and promulgated rules and regulations which ha

applied in all cases

For reasons set forth in the last annual report of the bo

52 the provisions of section 23 are and for several yea

been substantially obsolete though a number of cases i

while the act was in full force have heretofore remained o

further action pending audit by the Treasury Department 

incometax returns involved

The activities of the board under section 23 during the yea

to claims of the following companies for benefits in aid 

building of the vessels mentioned viz American IIawaiian 

ship Co for the steamship Halolo and the motor ships Ca

and Missourian Kinsman Transit Co for the steamship Ge

Humphrey Columbian Steamship Co for the steamship Jo

Frantz Union Oil Co of California for the steamships Mo

and La Placentia Association Oil Co for the steamship F

Drum Sun Oil Co for the steamships Pennsylvania Sun J 

Atlantic Sun Delaware Sun and the motor ships Sunoco a

Oil Standard Oil Co of New Jersey for the steamships 

Seep IV J Hanna S C T Dodd M F Elliott Thomas H 

er John Worthington IV H Libby Livingston Roe T J W

IValter Jennings John D Archbold and William Rockefe

the motor ships E T Bedford and J A Hoffett Jr Pan A

Petroleum Transport Co for the steamships I C White 

Doheny Elisha Walker Franklin K Lane Crampton An

Cerro Ebano and Cerro Azul the Texas Co for the st

Yew Jersey Vacuum Oil Co for the steamships Birkenhe

Gargoyle Munson Steamship Line for the steamship Muna

terlake Steamship Co for the steamships Col James P

Samuel Mather Harry Coulby William McLoughlin Robe

son and Charles H Schwab Atlantic Refining Co for the 

ship R D Leonard

When the exemption relates to taxes on earnings of ves

Government scontribution was the amount of such taxes 

ceeding however onethird the cost of the vessel thus requi

owner to contribute not less than two thirds the cost W
62 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPP

exemption related to Profits on sales of vessels the Governs

tribution was the tax on such profits to earn which exem

owner expended on the new vessel not less than the tota

received from the sale of the old vessel

Certifications by the board in all these cases have been 

the Treasury Department in accord with the requiremen

act and the board sofficial functions under the section ar

to have been fully performed and unless there are develop

now anticipated there will be no occasion to refer to this 

future annual reports of the board

A consolidated statement is submitted herewith conta

names of owners in alphabetical order to whom benefits 

section were awarded in aid of new construction togethe

new vessels built and other relevant data and also a sup

list in alphabetical order of all vessels toward whose co

the Government has indirectly contributed under the pro

this section
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

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THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

Supplemental list

IThis list contains in alphabetical order the names of the vessels appeming in the last column 

list where they we grouped according to ownership The numbers in the first column 

respectively to the corresponding number in the first column of the above list where the

serial orderl

Names of the new ves

sels built Num baron above list Type 0f vessel Length in feet tonnage weight Deed Speed knots I number Official 

A LKent 6 Steamship cargo 394 9650 l0 220573 

Alaska Standard 16 Motor Ship tanker 210 1825 9 221495 

Anniston City 21 Steamship cargo 424 9650 11 221292 

Atlantic Sun 15 Steamship tanker 429 10 G00 105 219810 

Birkenhead 22 do 425 10 M 11 2 

Californian I motor ship cargo 445 11000 115 222054 

Cerabobo 3 Steamship passenger 305 3101 125 223178 

and cargo

Cerro Azul 13 Steamship tanker 950 12550 125 2 21149 

Cerro Eba 11 do 450 12510 125 221129 

Charles Schwab 8 steamship cargo 516 12 UW 10 223200 

Charlie

C

Wats 16 I Motor ship tanker 250 2135 9 220666 

James Pickmds 8 Steamship cargo 5x0 12000 10 1394 

Crompton Anderson 13 Steamship tanker 435 0250 11 221233 

Cuba 14 Steamship passenger I 326 1350 18 21200 

and cargo

Delaware Sun IS steamship tanker 480 13200 11 221593 

E

Edward

T Bedford

1 Berwiud

17

7

Motor

Steamship

ship

cargo

tanker 499

595

1500

12000

11

104

21209

2211 39

Ehsha Walker 13 Steamship tanker 429 10600 105 210667 

F 11 BiUma 16 to 500 14000 105 2219 05 

Fairfield City 21 Steamship cargo 424 9650 11 221143 

Frank G Drum 2 Steamship tanker 435 102110 1 0 2t1141 

Franklin K Lane 13 do 435 10200 11 20517 5 

Gargoyle 22 do 425 10 OW 10 221070 

George Washington 11 Steamship passenger 375 2175 16 221216 

cud cargo

George M Humphrey 9 Steamship cargo 596 12050 109 217276 

It M Storey 16 steamship tanker 500 14000 IU5 221 

11 T Iierpor 16 Sletership tanker 329 4750 11 1817 

harry Coulby 8 Steamship enrgo 615 13 100 105 2742 2 

I C White 13 Steamship tanker 429 10600 105 220513 

J A Moflett J 17 Motor ship tanker 499 8700 11 221521 

J N Pew I 19 Steamship tanker 450 13000 11 221402 

James 1aclsaughton 23 Steamship em90 587 12 WO 10 

John

John

Worthington

D Archbold

17

17

Steamship

do

tanker 462 551 20300llbW 105111222555 221ters22U946 

Joseph Seep 17 do 429 10500 105 220767 

Joseph II Frantz 5 Steamship cargo 601 12000 109 224409 

K It Kingsbury 16 Steamship tanker

La Ylaceutia 20 d0 440111 90 440 12 0 1011 221174 21103 

Livingston Roe 17 do 462 11Se0 10 2210 1 

D1 F Elliott 17 do 425 9750 11 28919 

illalolo 1 Alms ship Passenger 582 5110 21 1 22G45 

Missourian 1 Alotar slip cargo 445 11000 115 2r236 

Montebello 20 Steamship tanker 440 120011 11 221100 

Dlurargo 10 Steamship passenger 4l3 5200 155 221S39 

and cargo

New Jersey 19 Steamship tanker 416 9330 105 221505 

Form hania S 18 do 400 1 12940 135 222747 

Philip D Block 15 Steamship cargo 556 2 WO 105 24525 

It D Leonard 4 Steamship tanker 266 2661 95 221 117 

It J Manna 16 do1 1 11 435 1 10400 10 221169 

Robert Horson 8 S townshi cargo SS6 1 12000 10 226175 

S C T Dodd 17 Steamship tanker 425110 100 10 2910341 

Samuel Mother 8 Steamship carg 55G 12000 10 22AW 

Solana 12 Steamship tank

Standard Eervica 16 Nlotor 210 981255 1059 1221899 22112 

Steel

a

21 tn

1

cargo 424 940 21575 

Sunoco 1tl Al DLitotrshpi tanker 248 10 27013 

Sun Oil 18 to

T 1

e

1 4465 133 200 11950 11105 2221618 

ThomasIms ILL Rheeler 177 doI t 425 9750 11 211110 

Thomas P Beal 6 Steamship cargo 324 9600 10 221483 

W II Libby 17 Steamship tanker 462 11800 Il 105 21x151 

W J IIOnna 17 do 429 10500 105 21S51 

W S Miller 16 do 435 10200 10 11953 

W S Rheem 16 do 500 14000 105 221Ss4 

Wolter Jennings 17 do 499 1500 11 2210x3 

William 11 Dahrpy 13 do 435 10200 11 2211511 

William MacLauchlen 8 steamship cargo 580 12000 10 226176 

William Rockefeller 17 Steamship tanker 554 203W Il 21675 

Worrell Clarkson 9 Steamship cargo 558 12000 105 222830 
66 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPI

BUREAU OF LAW

The organization of the Bureau of Law remains the sam

ing the previous fiscal year except that the district offices 

delphia Portland Oreg and Seattle have been closed 

work of the navigation laws division has been absorbed b

miralty division and will henceforth be handled by that di

The work of the three principal divisions of the Burea

may be summarized as follows

Litigation and Claims Division

The number of cases in litigation on June 30 1928 was 

the amount involved was 333 624 88 79 On June 30 

number of cases in litigation was 143 and the amount invo

109 42710 25 These figures include all litigation other 

handled by the admiralty division The number of cases 

of was 439 amounting to 231 52 1 01and the numbe

added was 419 amounting to 732302 47 Litigation in 

of Claims was active during the fiscal year some very la

having been tried and disposed of by that court Among 

so decided were the following

Castner Curran d Rullitt IncThis suit was broug

cover on purchase price of certain vessels and the com

found in favor of the plaintiffs for about 550 00 but 

reduced the amount to less than 200 0

Lindsay Lumber CoThis was a suit for breach of 

Judgment was found in favor of plaintiff for less than 

amount sued for 65000

John Russell SmithThis suit was brought to recover f

sitioning of contracts with the Globe Shipbuilding Co Th

of the suit was 475 000 Judgment was given by the cou

plaintiff for 35000

Marietta Manufacturing Co et alThis suit involv

than 340 00 arose out of the construction of four towbo

court dismissed the petition

Adam SchumannThis was a suit brought for requ

a dock and wharves The amount involved was 1160

court dismissed the petition and granted judgment for 59

Other cases involving smaller sums were likewise dispose

a number of new cases were started Those now on hand 

litigated

Other cases of great import were tried or otherwise dis

during the fiscal year Among these was the case of Unite

v Skinner Eddy Corporation This case was originally 

in the United States District Court for the Western D

Washington The claims of both sides including coun

amounted to about 20000 A judgment was rendered 
g 

All the testimony has been taken and it is expected that arguments

will be heard in the near future About 27000 is involved in

the six cases

In the cases of Johnson Lustgarten Federal Sugar Refinery and

Royal Insurance Co the Supreme Court will determine the whole

problem as to the exclusiveness of the suits in admiralty act in all

Shipping Board cases where suits are brought on causes of action

arising out of the operation of Governmentowned vessels The

legal department has handled all these cases in the lower courts and

has rendered aid to the Department of Justice

This division was responsible for the preparation of all court

papers and other instruments necessary in 37 foreclosure proceed

ins arising out of defaults on mortgages held by the Fleet Corpora

tion on property in Brooklawn N J

Contracts and Opinions Division

There has been great activity in the sale of ships during the fiscal

year The principal sale was the United States Lines and the Ameri

can Merchant Lines sold as one line to the United States Lines

Inc for slightly more than 16000 There were 11 vessels

involved in the sale and this division was responsible for the prepara

tion of all papers having to do with it These consisted of proposals

of sale and notices to bidders preparation of conditions of sale

contracts bills of sale preferred mortgages bonds and notes and

in the case of transfer of title representatives of the Bureau of Law

were present at each closing In addition necessary and separate

agreements for repairs to each vessel were drawn by this division

The sale of other vessels was likewise handled by the contracts and

opinions division Moreover this division prepared all contracts for

supplies and stevedoring all managing agents contracts all leases

all service contracts all powers of attorney for foreign representa

tives and all opinions that were required in the conduct of the busi

ness of the Shipping Board and Merchant Fleet Corporation Dur
vision is responsible for the handling of the socalled public vessel

cases for other departments of the Government These cases are

handled through the New York office The division also has super

vision of the proposed codification of the navigation laws it matter

which is now pending in Congress The bill introduced by Senator

Jones of Washington and Representative White of Maine with a

view to putting the code into effect has been referred to the Bureau

of Law for proof reading and check in order to eliminate possible

errors This work is now being done and an effort will be made

to have the bill returned for action by Congress at the nest session

Miscellaneous

The Bureau of Law handles claim against surety companies on

bonds and all collections on deferred payments It also has the

responsibility of maintaining files of all cases in litigation both

present and pat of docketing all cases with chronological record

of the progress of the cases of preparation of reports and other data

and of maintaining custody of all original contracts and other instru

ments It also pnon nearly all settlements made by the Slipping

Board and fleet Corporation as well as writeoffs and cancellations

of accounts of doubtful debtors and acts generally in an advisory

capacity to other departments of the Shipping Board and Fleet Cor

poration with regard to the functions of the various bureaus

The Bureau of Law desires to express its appreciation for the

cooperation and consideration received from the Attorney General

and the Department of Justice in all of the many legal problems in

which the Shipping Board and Merchant Fleet Corporation are

interested

BUREAU OF FINANCE

During the year the functions of this bureau were divided into

seven separate divisions 1 Accounts receivable 2 financial re

sults of operation of Shipping Board ships 3 marine insurance

4 housing mortgages 5 extension of notes or other instruments
THIRTEENTII ANNUAL REPORT UNITED STATES SHIPPING BO

6 settlement of accounts in liquidation and of managin

accounts and 7 general financial matters referred by the S

Board to the committee on finance from time to time

1 dccounts receivableThe Shipping Board collected 

mately 11500 0 on current accounts receivable during t

in addition to revenues received from operation of ship

bureau however has been more actively concerned in the c

and settlement of old accounts At the beginning of the y

accounts amounted to over 62000 and at the close of 

the amount clue was slightly more than 36000 Of the 

closed more than a million dollars were received in cash oth

adjusted canceled or written off as uncollectible

This bureau has kept actively in touch with these old 

through conferences and frequent meetings of a committee 

ing of representatives from the finance operations and 

partments In some instances the commissioner in charg

bureau negotiated settlements and collections where cases 

mained in deadlock for years

2 Financial results of operationThe bureau has mad

continuing to make special studies of financial results of o

of the fleet Individual studies and reports have been iss

far on the American Diamond Lines America France Line 

Line Gulf West Mediterranean Line and the Gulf Orient 

These studies include a financial history of the lines showin

and result of operation to date Similar reports for other 

in course of preparation They are intended for use of 

sioners of the board in their consideration of sale of lines 

record

3 Marine insuranceThe bureau has in progress a spec

tigation of the subject of marine insurance for the comm

finance with a view to proposing an equitable and defini

to be followed under the provisions of the merchant marin

1929 The services of Dr S S Huebner nationally know

on marine insurance have been engaged in this conne

general plan will be proposed for the board to follow in r

insurance from its insurance fund for ships which it has 

ships which have been and are being constructed with th

the construction loan fund of the board It is also propose

mit a plan whereby a definite rule may be followed in the 

ships operating in restricted services as separate from tho

sold for operation in unrestricted services

4 housing mortgagesDuring the year negotiations h

under way for the sale of various housing mortgages hel

Shipping Board These mortgages remain as an aftermat

shipbuilding program the value of these mortgages am
70 TIIIRTEE NTII ANNUAL REPonT UNITED STATES SHIPPIN

approximately1000 Efforts have been made from 

time and are still in progress to sell our housing mortg

get the Government out of the mortgage business The l

best offer 85 per cent for certain mortgages at Brooklaw

was disapproved by the board This offer was considere

ably fair but the board preferred to dispose of all at one 

The bureau closed out some longstanding mortgages 

den N J but there are still many properties at Broo

which it has been found necessary to foreclose

5 Extension of notes or other instrumentsBy reason 

nite stand taken by the committee on finance against the 

of time or modification of terms on notes or other ins

there have been very few requests of this kind during 

year The Bureau of Finance will not recommend exte

the board except in extraordinary cases as the Shipping 

making an effort to close out all of these accounts

As of June 30 1929 notes due on account of ship sales a

to 41883 398 and on account of construction loan 14

Other notes and securities amount to over3000 Al

are considered of sound value There are other notes and 

past due and of doubtful value amounting to about30

which are almost entirely the result of the wartime shi

program

6 Settlement of accountsOf the various classes of w

formed in this bureau this division is perhaps the most p

and the most difficult to describe For instance a case like 

This case was properly under the Bureau of Law it had be

gation for a number of years with prospect of many more 

go In an effort to bring a settlement of this account the 

sioner in charge of this bureau proceeded to Japan with a 

tative of the Bureau of Law and negotiated settlement to 

vantage of the board Other settlements in varying amo

continually in negotiation in cooperation with the Bureau 

with a view to reducing the number of outstanding acco

court cases Accounts of another class are those involv

standing disagreements resulting from operation of the 

former operating agents of the board Still other acco

pure collection cases Work in these is usually in coopera

the finance and accounting departments of the Merchant F

poration

T General financial mattersDuring the year various 

have been referred to the committee on finance by the 

Board these cases require investigation conferences and 

tion of special reports Of particular interest during the y
In consequence of the increasing national interest in the activities

and development of the American merchant marine the volume and

scope of the duties performed by the Bureau of Research were

materially increased during the fiscal year ended June 30 1929

This increase was evidenced by the growing work of the bureau and

the demands for special research in economic and statistical studies

of which 408 were completed in the fiscal year 1929 as against 267

in the fiscal year 1928 Many of these studies involved original

research made possible by the very complete and comprehensive

resources available in the files of the bureau In the distribution of

the 408 special studies during the past year 206 went to the United

States Shipping Board 67 to other governmental departments 77

to commercial and port organizations 30 to industrial and trans

portation corporations 16 to periodical publications and 12 to

educational institutions

Under the plan of organization now in force the work is dis

tributed among three divisions The maritime records division the

educational division and the economic division

The maritime records division collects records and compiles data

pertaining to the movement of vessels cargo passengers and mail

in the foreign intercoastal and noncontiguous United States terri

tory trades with particulars of the lines operated vessels employed

commodities carried and ports of origin and destination of pas

sengers and freight shipments In this division records are main

tained containing essential data on the world s merchant fleet of

steam and motor vessels of 1000 gross tons and over comprising

approximately 20000 ships Records are also kept showing the

construction casualties and the status and employment of United

States steam and motor vessels of 1000 gross tons and over

The educational division originates and develops studies graphic

presentations informative data and educational material of value

to the Shipping Board and other governmental agencies universities
pgppp

sengers on foreign intercoastal and noncontiguous routes the writ

ing of 50000 letters and the formulation of permanent records on

1200 0 cards the 10000 changes in the status and structural detail

made in the world smerchant fleet and the conduct of the corre

spondence research and investigation necessary to insure the accu

racy and completeness of the records formulated This last duty

involved the examination and exhaustive analysis of approximately

150 00 individual reports received from collectors of customs vessel

operators and other sources

During the fiscal year 1929 the bureau issued 86 periodical reports

50000 copies of which were distributed among governmental officials

shipping and railway companies port organizations financial com

mercial civic and educational institutions

The bureau scumulative records of world ports and world com

modities now contain 200 commodities and the names and locations

of more than 3400 world ports Of the world ports recorded 336

are located in continental United States 406 in noncontiguous United

States territories and 2659 in foreign countries

SECRETARY

During the past year the work of the office of the secretary included

the following activities

Recorded all minutes of meetings of the Shipping Board

Prepared and presented to the board by formal docket or other

wise all cases which required the board sattention

Acted as custodian of the files records and seal of the board

Prepared for use in litigation or otherwise certified copies of

documents and records

Conducted all investigations and correspondence under section 9

of the shipping act 1916 as amended and issued formal orders

thereunder
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

Prepared for the board or committee thereof cases whi

under section 30 subsection O merchant marine act 1920 c

investigations in connection therewith and issued forma

thereunder

Prepared as budget officer for the consideration of the bo

transmittal to Congress estimates for appropriations require

board

Examined and tools administrative action on vouchers 

salaries and expenses of employees of the Shipping Board 

tion of the chairman

Maintained jurisdiction over the service divisions of th

such as library mails duplicating files chief clerk sdivision 

nel division etc and general office management

Supervised communications telegrams cables etc

Under direction of chairman exercised supervision over 

sonnel of the Shipping Board

Assisted special committees of the board in preparing 

holding hearings in connection with various matters which w

consideration by the board

Sales to Aliens and Transfer of Registry

The administration of the provisions of section 9 of the 

act 1916 as amended is vested by the board in one of its 

committees composed of three members All preliminary 

tions studies and recommendations concerning applicatio

this section are conducted in the office of the secretary on 

the standing committee

Section 9 provides in part as follows

It shall be unlawful to sell transfer or mortgage or except un

tions prescribed by the board to charter any vessel purchased from 

or documented under the laws of the United States to any person no

of the United States or to put the same under a foreign registry or 

out first obtaining the board s approval

This section further provides that any violation of the 

provisions shall subject the vessel to forfeiture to the Unit

and the person or persons guilty thereof to a fine of not m

5000 or to imprisonment for not more than five years or b

Under section 202 of the merchant marine act 1928 vess

by the United States and in its control may be recondition

paired so as to equip them adequately for competition in th

trade of the United States any vessel so remodeled or 

shall remain documented under the laws of the United Stat

less than five years from the date of completion of the impr

and so long as there remains due the United States any 

interest on account of said vessel

toaza
74 THIRTEENTII ANNUAL REPORT UNITED STATES SHIPPIN

Under section 301 merchant marine act 1928 all vessels 

whose construction equipment reconditioning or remodelin

provement a loan is made from the construction loan fun

board shall be documented under the laws of the United St

remain so documented for not less than 20 years from the 

loan is made and so long as there remains due the United St

principal or interest on account of such loan

The obvious intention of the foregoing provisions was to 

the transfer from the jurisdiction of the United States of a

and craft of a type size and hind which may be deemed 

to the maintenance of an efficient American merchant ma

as auxiliaries in the national defense This has been the d

consideration in the administration of the law

It has also been the policy of the board in the administ

these provisions to withhold approval of the sale alien and 

to foreign registry of a vessel where it is the intention of th

involved to place the vessel under foreign registry with 

crews and alien personnel in direct competition with Amer

vessels operating on established trade routes and where it 

practicable to continue such vessels under United States reg

jurisdiction

In cooperation with other branches of the Government t

scrutinizes the transfer of vessels which from their size a

are adaptable to the smuggling trade and other violation

laws of the United States

In the exercise of the powers conferred by section 9 of 

ping act 1916 as amended the board requires the filing of 

cation the form of which has been prescribed and copies 

may be obtained from the office of the secretary The appli

required in executing the application form to give details 

ing the vessel sconstruction age present and contemplate

the reasons for requesting transfer of ownership or regi

why it is not desirable or practicable to retain the vess

American ownership for operation under the American fla

must also be filed with the application a certificate issue

collector of customs at the vessel s home port showing l

encumbrances of record If encumbrances are disclosed t

insists upon the protection of the rights of all lienors The 

tion must show clearly whether sale transfer of registry 

gage of the vessel is desired

In the chartering of an American vessel to an alien a le

application is required but it is essential that full detai

charter proposed be submitted Concerning the charterin

vately owned American vessels to aliens the board on duly 

adopted the following resolution prescribing charter regula
THIRTEEN TII ANNUAL REPORT UNITED STATES SHIPPING BOA

Resolved as a regulation prescribed by this board under the prov

section 9 of the shipping act 1916 as amended the approval contem

that section is hereby given that any vessel documented under the la

United States may be chartered without further action by this bo

person not a citizen of the United States for a period not to exce

months or for a voyage or voyages the probable duration of which 

exceed twelve months Provided however Neither this resolution 

resolution adopted October 14 1921 shall be construed to apply to a

which has been purchased or chartered from the Shipping Board n

vessel in aid of whose construction or improvement a loan was ma

board whether the consent contemplated by section 9 of the shipping 

will be given to the charter of any such vessel will be determined o

application for such consent

Resolved further the resolution adopted October 14 1921 prom

regulation on this subject is hereby repealed without prejudice howev

proper action heretofore taken thereunder

The foregoing regulations supersede regulation adopted 

14 1921

Section 41 of the shipping act 1916 provides that whe

section 9 the approval of the board is required to render 

or transaction lawful such approval may be accorded eith

lutely or upon such conditions as the board may presc

violation of such conditions constitutes a misdemeanor and 

ishable by fine or imprisonment in the same manner and 

the vessel stocks bonds or other subject matter of the ap

conditionally approved to forfeiture in the same manner a

the act conditionally approved had been done without the 

of the board but the offense is deemed to have been com

the time of the violation of the condition By this section 

made unlawful for any person to make any false statem

inaterial fact to the board or any member thereof or an

agent or attorney thereof for the purpose of securing such a

and a penalty of a fine or imprisonment or both is impos

Among the conditions which have been imposed by the 

approving applications under section 9 may be cited the fo

a That the vessel would within a prescribed period be comp

mantled and scrapped or except for one outward voyage will not 

ports of the United States for five years

b where American citizens have industrial and commercial in

foreign countries requiring vessels to be documented under local r

to engage in local coastwise trade the transfer has been permitted 

dition that the vessel be restored to American registry within a 

period upon demand of the United States should it be considered 

tional emergency exists

new

c

vessels

That

of

upon

at

the

least

transfer

equal tonnage

of the vessel

would

to

be

foreign

constructed

registry

in a

or

lim

and placed under American registry
76 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPP

A great many of the vessels transferred to foreign regis

2500 dead weight tons or less many of which it has been sh

come into the hands of persons engaged in unlawful tra

suant to section 11 the board has in cooperation with th

ment of Justice the Treasury Department and the Coa

imposed a condition that the vessel thus transferred sh

used in the transportation to or from ports of the United 

any alcoholic liquors This condition is imposed where 

does not exceed 2500 dead weight tons All applications 

vessels of this size and type are investigated in connection 

executive departments involved who through special agen

reports concerning the business occupation and probable 

the proposed vendee or transferee

Instances have been brought to our attention where the 

ment under whose registry the vessel is to be transferred 

jected to the inclusion by the Shipping Board in its transf

of any condition which they may claim tends to restrict the 

eration of the vessel under such foreign registry In s

where the board deems a condition essential for the prot

the American merchant marine it may refuse approval en

as an alternative may approve the application and may a

lieu of the condition in its transfer order adequate secur

form of a performance bond or otherwise for the enforceme

tain conditions and covenants which it may deem appropria

Upon approval of applications under section 9 there 

by the secretary a formal order setting forth the board s 

and incorporating therein the conditions upon which such 

has been accorded except however in cases prescribed in 

ceding paragraph where conditions may be omitted

In cases of violation of section 9 of the shipping act 

of anv of the conditions or provisions which the board im

transfer orders granting its approval to sell alien andor tr

foreign registry or the mortgage or charter of vessels the 

the secretary conducts an investigation to disclose all the 

circumstances regarding alleged illegal transaction This 

gation involves considerable correspondence obtaining of 

and reports through the Department of State Department o

Treasury Department Labor Department and the Unite

Coast Guard all of which may be involved in the prosecuti

violation in question Upon the conclusion of the hoard si

tion if the evidence developed warrants the matter is referr

Department of Justice for appropriate legal action It is c

for these cases to be referred to the proper United States 

Attorney for prosecution and in the conduct of the case 
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BO

of the secretary follows the case to a conclusion and is oft

upon to furnish additional evidence and to have some one 

at the trial of the persons involved

Of the applications made to the board during the p

30 were acted on favorably A number of cases were present

preliminary examination indicated the vessels were of such 

size that they should be retained under American regis

through suggestion by this office sales were negotiated w

Americans rather than with aliens as had been proposed T

at present pending and under consideration 55 cases awaitin

of investigation and further consultations with applicants

The following statement slows action of the board on 

tions under section 9 of the shipping act 1916 from July 1 

June 30 1929
78 TIIMTEENTH ANNUAL REPORT UNITED STATES SHIPPIN

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80 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPIN

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THERTEENTII ANNUAL REPORT UNITED STATES SHIPPING BOA

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82 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPIN

Ship mortgage Act Surrender of Documents

Section 30 merchant marine act 1920 is cited as th

mortgage act 1920

Applications filed under subsection O section 30 mercha

act 1920 are referred to a standing committee of the bo

posed of three members The office of the secretary con

preliminary investigations conducts all correspondence in 

these applications and prepares recommendations to the 

behalf of the standing committee

Paragraph a of subsection O provides that the docum

vessel of the United States covered by a preferred mortg

not be surrendered except in the case of the forfeiture of 

or its sale by the order of any court of the United State

foreign country without the approval of the board and 

board shall refuse such approval unless the mortgagee co

such surrender

Paragraph d of subsection O provides that no rights 

mortgage of a vessel of the United States shall be assigne

person not a citizen of the United States without the appro

board and any assignment in violation thereof shall be vo

In the administration of the foregoing provisions the 

quires a written application to be filed by the owner of 

over his own signature or through a duly authorized offic

application must contain substantially the following

1 The name of the vessel or vessels involved

2 The reasons for requesting surrender of the docume

3 The names of all preferred mortgagees showing the 

the amount of the mortgage held by each

4 The name and address of the proposed purchaser or t

There must be obtained from each preferred mortgagee 

with the board written consent to the surrender of the d

as requested showing the amount of the mortgage or intere

vessel the citizenship of the mortgagee and if the same be a 

tion the citizenship of its president and managing dire

the consent is executed by an officer his authority to so con

be clearly shown

The purchaser or transferee of the vessel or of any intere

must file an affidavit of citizenship If the same be a pa

or association the affidavit must show the per centum of suc

ship or association owned by citizens of the United States 

a corporation the affidavit must show the nationality o

owning the controlling interest therein and the citizens

president and managing directors and whether said corp

a citizen of the United States within the requirements 
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

2 of the shipping act 1916 as amended by section 38 of the m

marine act 1920

The proposed purchaser or transferee must at the same tim

to redocument the vessel under the laws of the United 

concurrently with the surrender of the outstanding marine do

The collector of customs at the home port of the vessel w

a certificate of mortgages of record which must also be fi

the application

In numerous cases the board has required the submi

copies of trust agreements copies of mortgages as well as 

of proposed financial arrangements and has required the 

concerned to execute collateral agreements for the protectio

interests of the preferred mortgagee and American citizens w

invested in vessel property

Numerous cases arise where a vessel is lost at sea and is 

by a preferred mortgage Upon receipt of such informati

are taken to have the parties involved satisfy the mortgage a

the record of the vessel in the office of the collector of cu

its home port The vessel thereby becoming unencumbered 

proval of the Shipping Board to surrender the marine doc

unnecessary and the collector of customs may accept for 

tion the document of a vessel which has been lost or dest

During the past year the board has considered and app

applications for the surrender of the marine documents o

of the United States

PART II

UNITED STATES SHIPPING BOARD

MERCHANT FLEET CORPORATION

8
79144 2D Lrc P sz

PRESIDENT

TVOCOiTNOR

YICE PRES TGR AOMIx STRATIOX VICE PRES FOR OPEPATI

JCENNINS EAKELLY

SECRETARY S FINANCE COMPTROLLER S INSURANCE TRAFFIC OPERATIONS SUPPLY

OFFICE CEPARTMENT DEPARTMENT I

DEPARTMENT DEPARTMENT DEPARTMENT

SA1Cvwbcre HMWeIIS OSMDrnson eKOgden FGo HYOi ttorSmnT

Secretary easwe Gen 0 prrWk Pbnacef OvecNr

PERSONNEL

EXECUTIVE TRAVELINGAUDIT GENERALAVERACE EUROPEAN dMEDIT AGREEMENTS FUEL

DIVISION

DIVISION DIVISION CLA MS DIVISION TRADE DIVISION ADJUSTMENTS DIY DIVISION

E Skidmore

Monayer COLLECTION CONTROL AUDIT PARTICULAR 1 SOAMER41 W1

OISABIUTYdYCAEI PURCHASING

DIVISION DIVISION CLAIMS DIVISION TRADE DIVISION PERSONNEL DIVISION DIVISION

SECURITIES COLLISION CLAIMS MAENGER MAILd FEVENUCd E PNSE INLAND TRAFFIC

SHIP SALES GENERAL AUDITOR

DIVISION DIVISION S0 MITATIOHDIV PVI910N DIVISION

DIV SIQ4

JWOYan Ysrbvis CREDIT MANAGING AGENTS HULL INSURPNCE CLAIMS DIVISION RADIO DIVISION INVENTORY

MarMryer DIVISION ACCOUNTS DWRI1014 DIVISION STEVEDORING DIV

DIVISION

BONDING GENERAL MCWNIB MISCELLANEOUS TERMINALS d

Ot VISION DIVISION INSURANCE REAL ESTATE OV

STATISTICAL

D

DIVISION RESERVE FLEET

BUDGET CONSTRURIONAUDR DIVISION

JatGphMMUn pe DIVISION DIVISION

MAR DIVISION

M000 er

DISTRICT DIRECTOR One Eoch For

n6 IIuFW FA nIA ORIEVT SCUTN AMERICA

LhEiOERAJEO BV M4A uiM1G TuEPA Ri0R FiLnM1T 04VNED 5 q iE SNluONG R6

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Tx LAM Lx

79144 2D Lrc P sz
MERCHANT FLEET CORPORATION

ORGANIZATION

The commissioners of the United States Shipping Board co

to act as the board of trustees of the Merchant Fleet Cor

throughout the fiscal year 1929 in accordance with the orga

plan adopted in October 1927 and described in last year s 

report

The vice president and general manager who under this p

in direct charge of the activities of the Merchant Fleet Corp

resigned effective January 31 1929 and at that time the du

authorities formerly exercised by that officer were assumed 

president of the Merchant Fleet Corporation The general 

zation however continued to function through the vice p

for administration and the vice president for operations th

cers reporting to the president instead of to the vice presid

general manager as before Aside from this change in sup

the only organization changes effected during the year were 

importance An organization chart of the Merchant Fleet C

tion as of June 30 1929 will be found on the opposite page

The sale of several cargo services permitted the discontinu

the Savannah and Puget Sound district offices and the ma

duction of the Pacific coast office The sale of lines operat

the west coast also resulted in the discontinuance of foreign 

offices in Hong Fong Shanghai and Kobe

As mentioned elsewhere in this report the sale of the Unite

Lines resulted in the practical discontinuance of the specia

zation which for a number of years operated the vessels of 

At the end of the fiscal year 1929 all of the vessels of this 

been delivered to the purchaser and that part of the orga

which remained was engaged in closing the accounts and in 

settlement of the affairs of the United States Lines

The accompanying organization chart shows 18 lines 

vessels which were being operated by managing operators u

direct supervision of the Merchant Fleet Corporation on 

1929 This is four less lines than were reported last year 

having been sold and two lines consolidated with a third 

the American Pioneer Line as described later in this re
88 TTIIRTEENTII ANNUAL REPORT UNITED STATES SHIPPI

third line was sold but not delivered before the close of 

year

At the close of the fiscal year 1929 the officers of the 

Fleet Corporation were as follows

rresuient T VOCon

Vice president E C Plumm

Vice president for administration J G Jenkin

Vice president for operations E A Ielly

Treasurer Reber 11 W

General comptroller D S Morris

Secretary Samuel Goo

Except that there is no vice president and general man

above officers are the same as those who were in charge of t

ties of the Merchant Fleet Corporation at the close of the 

fiscal year

SPECIAL FEATURES OF THE YEAR SACTIVITIES

Sale of United States Lines and American Merchant Lines

From a sales standpoint the outstanding event of the f

1929 was the sale of the United States Lines and the 

Merchant Lines the only passenger services which were s

operated by the United States Shipping Board at the beg

the year

Early in the fiscal year 1929 the Shipping Board dire

advertisements be prepared inviting the submission of 

these two lines under several different plans for joint or i

operation Arrangements were made to open these bids N

15 1928 but subsequently in order to allow prospective 

more time for careful consideration the opening date was p

to January 15 1929

Six separate offers were submitted in response to the i

for bids After consideration of the merits of each bid di

with bidders investigation of financial standing and operat

rience of bidders and other pertinent matters and after 

had been conducted by the Senate Committee on Commerce 

in a majority vote by that committee that it should inte

objection to the sale the Shipping Board on February 

accepted the bid of P W Chapman Co of New York th

bidder

The sales agreement with the United States Lines I

company organized by P W Chapman Co Inc to op

United States Lines and the American Merchant Lines 

cuted March 21 1929 The first ship to be delivered was th

ship Leviathan on April 8 1929 and deliveries of the 

vessels were accomplished as they became available witho
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

fering with published sailing schedules the final delivery being 

June 12 1929

By the terms of this sale the purchaser agreed to pay 1080

for the two lines comprising 11 vessels and 218 000 for leas

of the United States Lines in the United States and abroad 

payment of the latter sum was provided while the basis of pa

for the vessels was 25 per cent cash for each vessel upon its de

with the balances payable in 15 equal annual installments 

purchaser also agreed to operate the vessels for 10 years t

comprising the United States Lines to be operated from New 

with the privilege of calling at other United States North A

ports to the United Kingdom Ireland France and German

a minimum of 61 voyages per annum and the five vessels com

the American Merchant Lines to be operated from New Y

London with not less than 15 voyages per annum A further 

eration of the sale was the agreement of the purchaser to co

two new passenger vessels within two years from February 13 

under plans and specifications to be approved by the Shipping 

and to place these vessels in the service of the United States Li

as to make a minimum of 13 voyages each per year The pe

2

ance of the sales contract is guaranteed by a bond in the s

500 0 reducible yearly after the second year if the c

requirements are met

The sale of the United States Lines will result in the eventua

lution of the special organization which for several years has 

ated this line under the supervision of the Merchant Fleet Co

tion At the end of the fiscal year 1923 this organization num

630 employees located in the United States and elsewhere w

annual pay roll of about106300 As soon as the final d

of this line was completed early in Tune 1929 great reduction

made so at the end of the fiscal year there were but 259 emp

with annual salaries totaling 400 0 and the majority of 

employees will be separated from the service within the fir

weeks of the fiscal year 1930

Other Ship Sales

Other ship sales during the fiscal year 1929 included 168 

and 3 refrigerator ships 9 tankers and a miscellaneous group 

made up of launches liglitcrs surf boats and 1 damaged tu 

266 vessels were sold and the sales prices totaled approxi

29000but there were additional considerations to manv 

sales in the way of guaranteed service agreements and bett

contracts which are valuable from the standpoint of the es

ment of a permanent American merchant marine

79144 7
9Q THIRTEENTH ANNUAL REPORT UNITED STATES SHIPP

Of the 168 cargo vessels sold during the year 1S were so

restricted operation 10 of the smaller type with transf

privilege 43 for trade route operation 15 with buyer ob

recondition and improve them and 82 for disman

scrapping

Three cargo trade routes were sold The American Wes

Line with 10 ships the American Palmetto Line with 10 

the Gulf Brazil River Plate Line with 12 ships The fir

these trade routes were completely delivered during the 

only one of the vessels of the Gulf Brazil River Plate 

delivered before June 30 1929 Eleven cargo ships were so

ment lines sold in previous years as follows Three for the 

Export Lines sold in 1925 2 for the Pacific Argentine B

sold in 1926 4 for the American Scantic Line sold in 1927 

the Oregon Oriental Line sold in 1928

The 82 cargo ships sold for dismantling and scrapping 

exception of 5 were required to be scrapped in the Unite

This group consisted of vessels for which there was little d

ships due to their design and equipment

One refrigerator vessel was sold for unrestricted oper

two for establishment of a refrigerator service between t

States South Atlantic ports and the United Kingdom a

nental Europe

A large reduction in the operating fleet and a good marke

disposing of the tankers which had been reserved for op

conjunction with other vessels owned by the Shipping Bo

nine tankers sold during the year reduced this type to one 

one concrete vessel at the end of the fiscal year

Near the end of the fiscal year the Shipping Board auth

sale of the Gulf Nest Mediterranean Line including eigh

the Tampa InterOcean Steamship Co but the sales agree

riot executed until after the close of the fiscal year so the

are not included in the abovementioned sales totals Bid

purchase of the American Diamond Line and America Fr

were received early in June 1929 but were not acted upon 

end of the fiscal year

A statement showing the various classes of tonnage so

of vessels names of purchasers sales prices and the cond

erning the sales is given in Table I of the appendix

Extent of Vessel Operations

As a result of the sale of cargo and combined passenger 

services during the fiscal year 1929 the number of cargo 

senger vessels in active operation decreased materially in c

with the preceding year Excluding cargo vessels in the co
TIIIRTEE NT11 ANNUAL REPORT UNITED STATES SHIPPING BOAR

there were 194 cargo ships and no passenger ships active at Ju

1929 whereas on the corresponding date of the preceding yea

were 219 cargo ships and 11 combined passenger and cargo s

operation it total of 230 active vessels Cargo services whic

still in operation at the end of the fiscal year 1929 however 

greater number of active vessels than the same lines had at t

of the preceding year the totals on these two dates being 194 a

respectively The number of inactive vessels assigned to thes

was also greater at the end of 1929 there being 24 instead of 

the end of the preceding year

Cargo services which were in operation throughout the fisc

1929 completed 916 voyages thereby exceeding the total of S

these services in the fiscal year 1928 Sales of lines howev

their effect on the total number of voyages for cargo and pas

services which dropped from 1205 in 1928 to 1069 in th

lowing year

During the fiscal year the Shipping Board authorized the u

tion of the American India Line the Atlantic Australian Lin

the American Pioneer Line Atlantic division For some tim

lines bad been operated separately under the managemen

single operator but overlapping schedules and routes made 

sirable that they be combined and operated as one line the 

can Pioneer Line under the same management At the sam

the name of the line operating from Gulf ports to the Fa

was changed from the American Pioneer Line Gulf divis

the American Gulf Orient Line Otherwise except for line

during the year the services continued to be operated by th

managing operators and under the same trade names as descr

preceding annual reports A list of the lines and operators 

is included in the appendix Table IV

Total Results of Operations

The total operating loss for the Merchant Fleet Corporat

the fiscal year 1929 was approximately 13665 000 excludi

cost of reconditioning and operating vessels in the coal trade 

amount is about2614 000 below the loss reported in 1928 a

compares favorably with the results in preceding years it be

lowest point in a gradual scale of reduction from the total 

41000 reported in the fiscal year 1924 Some of the 

reduction in losses in recent years is due to savings resulting 

the sale of cargo and passenger lines but a large part is the 

result of improvements made in recent years in the operating 

of continuing lines

A statement of profit and loss for the fiscal year 1929 s

operating results for the various types of vessels and for 
92 TIIIRTEENTII ANNUAL nrrorT UNITED STATES MIPP

activities of the Jlerellant Fleet Corporation is given in 

of the appendix to this report

Cost of Maintaining Cargo Services

For cargo voyages and expenses of inactive cargo vesse

to managing operators the total loss was10507 00in the 

1929 This total is4263 000 below the 1928 figure Inac

expenses were nearly 600 0 less in the fiscal year 1929 t

preceding year but it was in voyage losses that the grea

was made

Part of the reduction in voyage losses results from t

lines but an improvement of approximately 269 000 

attributed to improved operating results for voyages of 

lines If the results for lines which have been sold and 

are omitted from the totals for the fiscal years 1928 an

will be noted that the continuing lines terminated 29 mor

carried 583 000 more tons of cargo and earned 2827 000 

nue in 1929 than in the preceding year In spite of the 

number of voyages there was an increase of only 560 00 

expenses of voyages of these lines due to a great ext

low fuel prices which prevailed during a large part of 

year 1929

From the above it is evident that in 1929 a more extens

was rendered by the cargo lines in fulltime operation tha

case in 1928 and this was accomplished at a very much re

to the Government

Operating Losses for Passenger Services

Due to the sale of the New YorkLondon service of the 

Merchant Lines six less voyages were terminated by this 

fiscal year 1929 than in the preceding year but in spite o

voyage profits were 200 0 greater than the 1928 total 

provement was offset to some extent by increased inac

expenses in 1929 incident to the delivery of this line t

chaser The net improvement in operating results for t

between 1928 and 1929 was approximately 95000

The sale of the United States Lines also resulted in 

number of voyages being reported in 1929 than in the 

year Instead of resulting in a saving to the Merchant 

poration however this caused an increased loss since the 

ages which would have terminated if the line had not been 

have been in the profitable season and the results would 

have offset some of the losses reported earlier in the year 

dition is particularly apparent in the case of the steamship 

which had four less voyages than in the preceding year 

voyages resulted in a profit of 419 000
THIRTEENTH ANNUAL REPORT UNITED STATES sriirrlNG DGA

The net result of the operation of the United States Lines 

fiscal year 1929 was a loss of1218 000 whereas in 1928 

loss was about 465 000 Cancellation of voyages which 

probably have been profitable as explained in the preceding 

graplt and increased repair costs incident to the delivery 

vessels of this line to its purchaser are responsible for a larg

of the increased loss in 1929

In the winter of 192329 operators of American flag tonn

Cuba were confronted with the problem of meeting unusual 

tition offered by a British flag passenger vessel which was with

from its usual service in the North Atlantic to operate dur

profitable season in the New YorkHabana passenger trade 

sist the American flag operators to meet this competition the 

ping Board directed that the steamship President Roosevelt 

porarily withdrawn from the United States Lines and assigne

New York and Cuba Dlail Steamship Co for operation 

account of the Shipping Board in direct competition to the 

flag vessel which had been placed in the New YorkHabana 

The President Roosevelt operated in this service for abou

months during which 11 voyages were completed

Just before the President Roosevelt was returned to the 

States Lines the Shipping Board was gratified to learn from t

York and Cuba Hail Steamship Co that the service of this v

the New YorkHabana trade had reacted favorably on the 

people and on the traveling public with resulting benefit 

interests of the American merchant marine

Coal Trade

The appropriation act for the fiscal year 1929 provided 10

or so much thereof as might be necessary for reconditioning a

erating ships for carrying coal to foreign ports In accordanc

this authorization 10 cargo vessels were reconditioned duri

fiscal year 1929 at a cost of approximately 500 0 and were a

to managing operators for operation in the coal trade Duri

fiscal year 15 voyages to Mediterranean ports and one voy

South America were completed at a net cost of approxi

270 00

The 1930 appropriation act makes additional funds availa

this purpose so the operation of vessels in the coal trade will 

tinued in the ensuing fiscal year

Other Operating Results

Profits from tanker operations decreased from 165 000 in th

year 1928 to 54000 in 1929 This reduction was clue to the d

in tanker activities which late in the fiscal year led to the sale 

remaining vessels and the discontinuance of this service
94 TumTELNT1l ANNUAL REPORT UNITED STATES SHIPP

Miscellaneous income amounted to approximately 8800

the fiscal year 1929 approximately the same amount repo

preceding fiscal year In 1929 the Merchant Fleet Corpo

permitted to use the interest earned on bank balances w

preceding year was not available for use On the other 

sales and deliveries from fuel stations maintained by the 

Fleet Corporation which in 1923 resulted in a profit of abo

in the following year resulted in almost as great a loss due 

that market and issue prices for fuel oil in 1929 fell below 

paid at the time this oil was placed in storage

Reduction of Pay Rolls and Administrative Expenses

During the fiscal year 1929 persistent effort was made t

far as practicable the pay roll and other administrativ

of the Merchant Fleet Corporation and in this way to keep 

the reduction of operating activities caused by the sale 

lines

At the beginning of the fiscal year the Merchant Fleet C

set as its goal for the year a reduction of 20 per cent in it

and throughout the year it endeavored to accomplish this 

by every possible means including closing of offices o

coast and in the south Atlantic district by consolidation o

personnel failure to make replacements for personnel r

separated etc Comparison of the total pay rolls of the 

Fleet Corporation at the end of the fiscal years 1928 and 19

ing the United States Lines and the P S I Agency sh

reduction of 599 employees with an annual pay roll of 98

accomplished during 1929 the latter figure being 192 p

the June 30 1928 payroll While this percentage does not 

the 20 per cent reduction which was the goal the June 30 

roll includes salaries of a number of employees who had 

arated from service but were on accrued leave and if th

were omitted from the June 30 1929 pay roll the tota

would be 22 per cent

Efforts to reduce other administrative expenses inclu

telephone telegraph and cable charges traveling expen

portation etc resulted in a reduction of approximate

in the fiscal year 1929 or about 13 per cent below the to

expenses for the preceding fiscal year

New Operating Agreements

It has long been recognized that the operating agreem

have been in effect in recent years do not provide a prope

for managing operators to keep expenses at a minimum or 
THIRTEENTH ANNUAL nl rocT UNITED STATES SHIPPING P01n

revenues Prior to the fiscal year 1933 a further difficulty ha

that the uniform compensation rates allowed to all operator

on percentages of outward and inward revenue earned w

entirely equitable due to varying conditions in the several 

but the adjustments of compensation rates which were effect

ing the fiscal year 1928 Sid much to correct this fault

During the fiscal year 1923 the Merchant Fleet Corporat

commended to the Shipping Board the adoption of two new 

of contract designed to overcome the objections to the op

agreement 1924 These contract forms referred to as the 

sharing and the lump sum plans were approved by the Sh

Board in November 1938

The profit sharing agreement follows the general form of 

erating agreement 1924 except as to managing operators c

sation It provides for the allowance of a fixed sum per 

intended to meet the operators administrative expenses and 

ther allowance to be determined by subtracting a certain per

of voyage expenses from a prescribed percentage of revenue 

fixed allowance and percentages of expense and revenue are 

mined separately for each service depending upon conditi

that trade This plan therefore provides the operator with 

mum amount to meet his outofpocket expenses and leaves t

ance of his compensation dependent upon his el orts to red

penses and to increase revenues

The lump sum agreement provides a different plan of mana

and compensation from either the profit sharing agreement 

operating agreement 1924 By this plan the operator a

complete physical and financial control of the operations of th

and the Merchant Fleet Corporation confines its activities to p

inspections covering the maintenance of service in accordanc

the contract and the physical condition of the ships For t

vices of the operator in maintaining the line a lump sum am

paid the amount to be determined for each line by analysis 

cent operating results This form of agreement places the m

ing operator upon as nearly a privately owned operating bas

practicable and should pave the way for the eventual sale of 

Negotiations were commenced with all operators for the su

tion of one or the other of these plans for the existing con

Definite propositions were received for two lines but contract

not consummated pending arrangements for the sale of these 

A profitsharing agreement was negotiated and concluded w

operator of the Mobile Oceanic Line which is now being op

under this form of agreement
96 THIItTEENTII ANNUAL BEPORT UNITED STATES SHIPP

PRINCIPAL EVENTS OF THE YEAR IN OPERATIONS AN

Centralized Purchasing

The system of centralized purchasing described in p

ports was continued throughout the fiscal year 1929 The 

of purchases made by Merchant Fleet Corporation office

of bunker fuel approximated 4520 00 of which 21900

the account of the United States Lines and 550 00 was 

count of the United States Lines Inc

Wherever practicable district offices of the supply depa

tinued to make contracts for the requirements of managin

at domestic and foreign ports Domestic purchases made 

ing operators on such contracts approximated 2440 00 

parison with current market prices shows a 10 per cent s

these contracts Purchases made abroad by managing o

supply department contracts totaled 62000 and purcha

United States Lines on such contracts amounted to ap

215 000 Purchases made by managing operators on con

tiated by the Washington office of the supply departm

the centralized purchasing plan for lubricating oils paint

manila rope dunnage fire brick fire clay yeast am

approximated 150 00 at a saving of about 40 per cen

open market prices

Contract prices during the fiscal year 1929 were much 

those prevailing during the preceding fiscal year due to 

petition occasioned by the large quantities purchased 

prompt payment of bills Inspection of subsistence and 

sumable stores items by district offices and by various bu

United States Department of Agriculture as in prev

resulted in monetary savings and in improved qualit

purchased

Disposition of Surplus Stores and Reduction of Stocks

As in previous years the Merchant Fleet Corporatio

the policy of liquidating and reducing the stocks of m

various warehouses by sale of surplus obsolete and sc

and equipment The total amount of such sales was ap

290 00 in the fiscal year 1929 including materials valu

12000 which were transferred to Government departme

The sale of several trade routes resulted in the closi

houses at Savannah San Francisco Portland Seattle H

Manila and Shanghai and permitted a reduction of ap

35 per cent in the stocks maintainer at New York

Fuel Purchases and Issues

The following tabulation shows by ports the quantit

fuel oil and coal purchased under contracts and on the m
THIRTEENTH ANNUAI REPORT UNITED STATES SHIPPING BOAR

fiscal year ended June 30 1929 the number of bunker delive

each port and a comparison of contract prices as of June 30 

and June 30 1929

FUEL OIL

Number Contract price C

Part Quantity Cost ofones deliv June 30 1028 p

DOMESTIC PORTS

Barrels

Roston 57811 446 819 51 33 15 M

Sew York137180 144910 64 5 50

New York

e

United States Line 153 734 1340 551 128 1115

Philadelphia Il3

Ofl n

93052

947 IM 105 5

9

Baltimore 188 S67 2W172 20 33 Market

Charles ton 2 0

10 fi 1

L10 0O

avnnah a 5OMW6 45i

1 10i 09

Jacksonville 15 If 1 44 100 10 5

9

Key NR eL 1 L15 M

Tnn

04 3

095 

Yo Tampa Oarapa 910 10 090 09

New 1 96GA670 I G4 i441 4N 256 0N5 6

8

PartoArthur

tan 12611 500 538 302 4080899Ga 155

65 080

078OR9

56

Baytown 0 1

301MI So 9 Oi

CarpedChristi 9059 717 15 1 08508

San Pedro 301 557 226 057 Si 85 30785 17

Total 7991 236 7356 522 10 148

FOREIGN PORTS

United Kingdom 11749 24778 3 10 601 ton 55 

Southampton United Staten Lives 219 053 435 103 60 11 55 ton

European continental parts 29127 57610 75 45 IS ton 50 

Dakar 153s4 30559 76 6 551an

St Vincent 1010 1970 05 1 54 ton

Port Said 79629 126 2175 21 195ton 9

DuenasAires 10515 20027 95 10 135 barrel 19

Trinidad 100 53 94387 41 2a 1 105 barrel 0

Ponta Delgada 1052 2559 64 I 15 

Bombay 57

Calcutta f2

Colombo 9

6

Fremantle 15853 38480 92 5 f8

Karachi 5G6

Melbourne 6

b

Misce llaneousPorts 44819 94 715 3 22 Inrket D

Total 530 814 926 b1fi 56 158

BUNKER COAL

DOMESTIC PORTS

Tonx

New York 18079 1 9947315 42 509 t 4 b M

New York States iues 02 22 5693 34914 thia 722 384 55 Mar Nla ketetb 

BAialtmorme 1381 64538 4 do 

Norfolk 79426 365 504 fit 113 do 

MiscellaneousParts 931 5214 99 3 do 

Total 164 97 858 664 73 19

I

FOREIGN PORTS

Bremerhaven United States Lines fib 118 339 405 65 19 20111 t I b

Ardrossan 4554 iii 614 t 9 159 f o b 153

Glasgow 3 0527 12 1110 43 33 1511 o b 15

LiverPeal 422 59210 98 4 I1 f o b I n

Tlanches ter 3 825 147 216 So 37 1713 f o b 1

3 

Rotterdam 3504 1521301 7 IS t Ib 18

NI iscollaneous port s 1515 68 3NG 36 23 Market f

Total 112 590 733 657 52 127
98 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPP

The following tabulation shows fueloil storage statio

and leased which were in operation during the fiscal y

June 30 1929 the quantity issued at each station the 

bunker deliveries the total value of the oil issued at ea

and comparison of prices as of June 30 1928 and June 30 

KUmhO Issue prise 

cries

Port Quantity Cost of d JDue 30 102

DOMESTIC PORTS

Crane Island B98398 81SS 423 918 05 1110 15 barrel 

Fr 531 719 993 78 15 110 10 barre

OB

San Francisco 1443 183 20 2 082 barre

Total 8 9 S30 36 21

FOREIGN PORTS

Dalboa 43561 50170 9 22 120 barre

Balboa Diesel 43015 59014 15 15 145 Larre

Cr istobal 845 9715 80 fi 120 Larre

St Thomas 65193 61 683 35 32 1 30 barrel 

Manil

129 653 1365 60 45 LOS hair

105 U3 163 U3 2u 101 155 barre

Total 395 540 480 902 10 221

RECAPITULATIONFUEL PURCHASES

Quantity Cos

ILEL OIL Barrels

DomesticPorts 7991 236 7355210 

Foreign ports 530 699 921 5

Domestic storage 932 050 91

33

Foreign storage 395 540 4Sq 9

Total 9 96527

1

COAL Teva

Domestic ports 164 476 853 6

7

Foreign ports 162 590 73

675

Total 327 066 1 159

34 25 

Total fuel Last 1829 1

27137
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING DOA

Below is presented a comparative tabulation of fuel qu

and costs during the years 1923 and 1929 which shows the 

change in both these elements daring the latter year

Quantity I Value

1928 1 1929 1 1928 

FUEL oa

Barrela Banefa

Domestic parts 8590 37 7991 28 11059 478 34 73

Foreign parts 68G 583 530 f04 15190 28 

Domestic storage 1871 699 932 050 23261 62544 

Foreign storage 900 212 395 540 194193 0 

Total 12 098 85t 9849 520 1647 63 9 

COAL

Tona Tone

Domestic parts 19776 164 476 980 349 45 

Foreign ports 135 61 I62 590 647 557 82 

Total 322 811 327 M0 1 62 907 27 1 

532

Total fuelcost 11 1

23

The average unit price per barrel of fuel

oil purchaser during the fiscal Tear

ended June 30 1341 

The average unit price per IonR ton of

bunker mal purchased during the fiscal

ear ended June 30 5042 

The decreased cost of fuel oil in 1929 was due to favorab

tracts especially at Atlantic and Gulf ports During the fi

of the fiscal year the openmarket prices of fuel oil at thes

took a decided drop and the corporation under its contra

ceived the benefit of each decrease that was made While the 

was at the bottom competitive bids were obtained for fue

quirements for a period of three years beginning January 

and the contract entered into lowered the fueloil costs at 

Atlantic ports below any figure paid by the corporation 

its operating history This contract was operative duri

last half of the fiscal year 1929 and the reductions in fuelo

effected thereby are reflected in above tabulations Open 

prices at North Atlantic and Gulf ports are now approx

13 cents per barrel above these contract prices and this diffe

may be radically increased during the remaining two and 

years which the present contract has to run

The decrease in the average cost of coal results from reduced 

at United Kingdom ports and from the policy of purchasing 

all home ports except New York on practically a distress m

as required rather than entering into time contracts

Following the assignment of additional Diesel vessels to 

routes a contract for their bunker requirements was made 
100 TIIIPEENTII ANNUAL REPORT UNITED STATES SHIPP

York The price obtained was approximately 00 per ba

the open market

Bunkering

The supervision exercised over bunkering operations 

has produced savings that are greater than were anticipa

this control was inaugurated in 1927 The amount of fu

chased abroad at high prices has been greatly reduced w

sequent reduction in operating costs In addition the cl

vision of bunkering activities has brought about a material 

in the number of distress cases arising from fuel shortages 

the past year there were only four instances of fuel shorta

all of which were the result of prolonged heavy weather

Stevedoring costs

Reductions in vessel operating expenses by limiting di

handling costs and also by reducing lost time and expenses 

while in port by increasing the efficiency of cargo loadin

charging were accomplished during the fiscal year

During the year several new cargo handling contracts w

ated and a number of adjustments were made in individ

where cargo movement was of such volume as to justify e

special rates At several foreign ports in South Americ

and the Orient changes in cargo handling arrangements w

or are in process of being made which will result in w

reductions in expenses and in increased operating efficiency

The year 1929 reflected an improved situation in so far as 

premiums on workmen scompensation and public liability 

were concerned The cost trend of this insurance was 

whereas in 1923 rates increased materially

Labor conditions were generally favorable in domestic po

the year but in French and South American ports water

conditions were not satisfactory frequent lockouts and str

fering with vessel dispatch and thereby increasing expense

The matter of procuring more efficient handling of ca

end that cargo claims might be reduced to a minimum wa

energetically with managing operators and district office

result that the former ratio between claims paid and re

reduced

Operation of Tankers

At the beginning of the fiscal year 1929 tankers on bo

and west coasts of the United States were operated under 

supervision of the operations department of the Merchant 

poration Early in the year however the delivery of 

cargo lines to purchasers resulted in the closing of westc
THIRTEEINTII ANNUAL REPORT UNITED STATES SUIPPING BOAR

of the Merchant Fleet Corporation so the single tanker oper

that coast was transferred to a managing operator This a

ment continued until late in the fiscal year when the serv

discontinued due to the sale of this tanker

Operation of tankers on the east coast of the United St

the operations department was continued until the end of 

1929 when the sale of the remaining tankers led to the discont

of this service

Except for the handling of several commercial fixtures t

ployment of tankers during the fiscal year was confined to t

riage of fuel oil to the various fuel storage stations operated 

Merchant Fleet Corporation

Care of Reserve Fleet

At the beginning of the fiscal year 1929 there were 490 ve

layup but by the end of the year this total was reduced 

including 35 vessels which had been sold but not delivered 

time On June 30 1929 the 341 vessels were distributed to 

fleets as indicated below

Distrlet Fleet 

New Fork

nogIsland

James River

Gulf

Caldwell Hudson River

Staten Island

Total

Iing Island

Total

James River

Patuxent River

Total

New MobileOrleans

Orange

Total

Grand total

The number of ships in layup decreased about 30 per ce

the number of personnel assigned to laidup vessels was 

254per cent below the total at the end of the preceding ye

June 30 1929 the authorized personnel numbered 581 an 

of 25 men per ship

Reserve fleet expenses for the fiscal year 1929 totaled a

mately1310 00 showing a reduction of about 10000 co

with the preceding year This reduction in expenses was 

made possible by rearranging the fleets into larger units by 

ing the personnel and by the continued use of preservatio

tions which are considerably cheaper than paint This me
102 TI irTELNTII ANNUAL QEPOET UNITED STATES UPP

removing rust and scale and holding the vessels in goo

preservation affords prospective purchasers an opportu

serve the condition of the plates which is most essential w

have been laid up for a nuanber of years

At the request of the Navy Department arrangem

made to tale over seven Navy vessels which had been 

the Norfolk Navy Yard The estimated annual mainte

preservation cost for these vessels is 50000 which is app

13000 less than the cost to the Navy during the past 

the transfer of these vessels to the fleet also released val

apace at the Norfolk Navy Yard The Navy will reim

Shipping Board for actual expenses and estimated over

To reduce expenses somo unusual work was undertak

personnel of various laid up fleets Faced with a 331 p

crease in the contract price of fresh water the James 

organization laid about two miles of pipe salvaged 

Island and built a Rater barge partly from salvaged lu

by these means fresh water is now obtained from Fort 

55 cents a ton below the proposed contract price The sa

ization arranged to upturn caulk and repair a barge so 

the expense of towing to a distant repair yard dry doc

eta At Mobile a barge was built and at New Orleans a 

rine railway was erected to save dry docking charges o

barge

At Hog Island numerous buildings and several shipw

razed and sold for firewood The general cleanup and m

program progressed satisfactorily and should be practi

pleted within a short time

Terminals

The terminal facilities at Hoboken N J were operated 

out the fiscal year by personnel of the Merchant Fleet Co

Pier 4 used by the vessels of the United States Lines is now 

to the United States Lines Inc purchaser of this s

otherwise the assignment of piers remains as described in 

reports This terminal is in good physical condition an

eduring the fiscal year 1929 were approximately 20

For several years the terminal facilities at Boston 

Philadelphia Norfolk and Charleston have been leased f

operation Except as otherwise noted below the leases me

preceding reports are still in effect

BostonThe lease with the Boston Tidewater Termin

December 1 1925 but was continued to December 31 192

plementary agreement with the lessee Effective Januar

this property was leased for a term of five years to the 
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPI NG BOAR

Shipping Co This lease provides that the lessee will pay 

United States Shipping Board 37 per cent of the gross r

received with a guaranteed minimum of 85000 per annum 

the fiscal year 1929 revenues amounting to approximately 

accrued to the United States Shipping Board from this te

and repair and other expenditures for the board s account 

about 3000

BrooklynThe lease with the Atlantic Tidewater Termin

pired December 1 1928 A new lease for this property for a 

of five years became effective on the same date and provides t

Shipping Board will receive 55 per cent of the roes receip

a guaranteed minimum of 100 0 per annum During th

year 1929 revenue amounting to approximately 220 00 acc

the United States Shipping Board from this terminal while 

and other expenditures for the board s account totaled about 

Phi ode7phiaThe lease with the Merchants Warehouse 

this terminal does not expire until August 15 1932 Daring th

year 1929 revenue amounting to approximately 130 00 a

to the United States Shipping Board from the Philadelphia te

and the lumber concentration yard while repair and other e

tures for the board s account totaled about 15000

NorfolleThe lease with the Norfolk Tidewater Ter

Inc covering this terminal does not expire until August 3

During the fiscal year 1929 revenue amounting to approxi

75000 accrued to the United States Shipping Board for th

folk terminal When this property was transferred from th

Department it was in bad condition and it has been necess

the Shipping Board to make large expenditures for betterme

provements and reconditioning in order that the terminal 

be used to its capacity To this end approximately 99000 w

pended during the fiscal year 1929

Char7esstonThe lease with the Port Utilities Commiss

Charleston expires February 8 1931 This property when 

over from the War Department was in such poor condition 

could not be operated as a terminal until numerous repair

made In this connection expenditures totaling approxi

21000 were made during the fiscal year 1929 During the pa

revenue amounting to approximately 11500 accrued to the 

States Shipping Board from this terminal

During most of the fiscal year 1929 pier No 7 North Riv

leased by the Merchant Fleet Corporation from the Delaware 

wanna Western Railroad for the use of vessels of the Am

Merchant Lines Due to the sale of this line however the lea

this pier was transferred to the United States Lines In

purchaser of this service
104 TIIIRTEENTII ANNUAL REPORT UNITED STATES SHIPP

PROGRESS ALONG SPECIAL TECIiNICAL LINES

Diesel Conversion Program

Three of the eight vessels included in the second group 

verted to Diesel propulsion were completed during the 

1929 and it is expected that the entire program will be 

early in the ensuing fiscal year

Complete details with regard to Diesel conversion wor

vessels will be found in the report of the Bureau of Cons

the United States Shipping Board

Fuel Conservation

This work was carried on during the fiscal year 1929 

same lines followed in several preceding years and again 

substantial savings in fuel expenditures

In spite of the large savings effected in prior years a

of the lower price of fuel oil a saying of 179 000 was ma

the first half of the calendar year 1928 as compared wit

half of 1927 In the second half of the calendar year 19

savings amounting to approximately 222 000 were ma

result of increased efficiency of vessels in the matter of 

sumption

During the fiscal year continued attention was paid t

sibility of effecting still greater fuel economies on the var

vessels These economies have been produced in the main 

tion to a number of details such as the operation of auxi

simple changes in pipe lines malting a single pump availa

form the functions that were carried on by two or more p

tention has also been given to utilizing exhaust steam inst

steam for a number of purposes The net result has been 

for instead of the fleet which is growing old showing inc

consumption it has been possible to show a continued imp

Tests with Pulverized Coal

The steamship Itemer which daring the fiscal year 

equipped to burn pulverized coal has continued in act

under the management of the American Diamond Lines in 

route between New fork and Rotterdam Since the ti

conversion she has traveled over 55000 miles using pulve

and has definitely established the reliability of this type 

The primary purpose of the experimental installation on 

ship Mcrc rwas to determine the reliability of pulverized 

in order to keep clown the initial expense of the insta

auxiliaries used by the pulverizing plants were selected wi

of reliability and low first cost rather than with the idea 
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

cal performance For this reason the efficiency of the eq

is not as high as it would be for a plant designed for co

service but even so the economies that may be expected 

of pulverized fuel have been clearly indicated

The Todd pulverized fuel equipment was submitted fo

July 1928 and a series of tests were carried on which fina

cated a satisfactory equipment The results of these tests w

that an experimental installation of this equipment was 

the steamship West Alsek This vessel has had satisfactory 

and has run from New York to Baltimore where she will 

service of the Oriole Lines in the run from Baltimore to 

Pingdom ports

Duping the year work was continued at the Fuel Oil Test 

the Navy Yard Philadelphia in conjunction with the Unite

Navy Department and several equipments were tested On

ment which is quite similar to that installed on the s

Mercer appears to be satisfactory and in Great Britain ins

of this type of equipment has been made on the steamship 

operating from the United Kingdom to New Zealand

Tests are now being made on another type of equipme

has been installed by the Inland Waterways on the towboat 

F Davis and is also being installed on two colliers now b

structed at the Bethlehem Shipbuilding Co Quincy Mass 

BerwindWhite Co The preliminary runs of this equipm

shown very satisfactory performance and the continuous ser

will be run in the near future

Radio

The radio service contract with the Radimnarine Corpo

America referred to in the twelfth annual report was exte

a period of one year from January 1 1929

With a view to improving radio service and equipment av

vessels of the Merchant Fleet Corporation a large number o

were equipped with amplifiers which increased their receivin

and a number of vessels were equipped with special types 

transmitters to meet peculiar conditions in the trades in wh

are operated Special arrangements were also made du

year with naval radio stations which result in improved c

cation with vessels in the Pacific Ocean

As a result of the participation of representatives of the M

Fleet Corporation in the International Safety of Life at S

vention in London during April and flay 1929 several p

were incorporated in the agreement entered into by repres

attending this convention These proposals provide for e

701412Ds
106 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING 

merchant vessels with radio apparatus and equipping certa

of vessels with radio compasses distancefinding and echo 

sounding apparatus It is believed that the adoption of the

posals by the convention will react to the advantage of the m

marine

A saving in excess of 100 0 was effected during the 

utilizing naval radio facilities for the transmission of mess

TRAFFIC

General Conditions

While in general the fiscal year 1929 evidenced a tendency 

recovery from the rather severe depression of the previo

the improvement in export cargoes and rate conditions was r

largely to movements from the Atlantic coast of the Unite

to various foreign ports Unfortunately similar improvem

not experienced by the services from Gulf ports where th

tion has been disturbed by severe competitive conditions 

pressed rates Inward traffic conditions however have s

improvement in practically all trades

The developments of the past year have clearly indica

value of rate conferences with competing lines The ten

toward a closer form of agreement which will assure al

fair participation in all classes of business There is a 

advantage to shippers as well as steamship operators as suc

ments stabilize rates and permit proper spacing of sailings 

vide exporters with more satisfactory service

European and Mediterranean Trades

Conditions in these trades indicated a return to norm

tions after a rather extended period of depression particu

the North Atlantic trades to France and Belgium where 

were considerably in advance of previous years

The improvement in North Atlantic conditions resulted 

from the settlement of conference difficulties which last 

the American Diamond Lines to withdraw from the contine

conference Early in the fiscal year 1929 an agreement wa

into with the principal foreign lines which eliminated these 

ties and which has reacted favorably throughout the entir

Hamburg range for which rates and cargo offerings have 

improved

In the Gulf services disturbed conditions have continue

heavy competition of foreign lines and threats of tramp 

which have combined to prevent the formation of prope

ence agreements While rates are not lower than during 

vious fiscal year they have shown practically no improve
TBIRTEENTII ANNUAL RETORT UNITED STATES siTirl ING BOA

Grain moved spasmodically during the fiscal year and 

exports while not in excessive volume were concentrated w

shorter period of time than is normally the case These co

made necessary the placing of 41 additional vessels in activ

tion to prevent congestion and provide a satisfactory ou

surplus crops

South American Trade

The American Brazil Line which was inaugurated du

fical year 1928 has shown continued improvement in outw

homeward earnings This service has been established on 

permanent basis of operation which calls for two sailis 

month from North Atlantic ports to north Brazil

In the River Plate trade competition by foreign com

passenger and cargo motor ships of the best type increased du

past year The competition of these vessels presents a serio

lem in the operation of the American Republics Line and p

owned American flag vessels operating in this trade

Far East Australia and India Trades

The North Atlantic services to the Far East Australia a

have been reorganized and are now assigned to a single m

operator for operation as the American Pioneer Line G

speaking traffic conditions in these trades have improved s

and the rearrangement of the services is also resulting in i

operating results

Trade agreements entered into with foreign operators 

Australia and India trades are also resulting in stabilize

tions and increased revenues

The position of these services in their trades has been m

advanced by the assignment of motor ships which have b

pleted under the Diesel conversion program of the Unite

Shipping Board The assignment of these vessels has plac

lines in a better competitive position with foreign lines 

enabled them to obtain a greater participation in the ca

high class cargo

PUBLICITY

During the fiscal year 1929 a continuous advertising c

was carried on to develop botl passenger and freight bus

Merchant Fleet Corporation services Regular advertising s

for all of the freight services were carried in publication

United States and many foreign countries As a supplemen

schedules a special display campaign in a large number o

trade and business papers was carried on which proved 

valnable factor in gaining the good will of shippers 
IOS TrURTEENTH ANNUAL riPOET LITLn STATES 5IIIPPIN

campaign the Merchant Fleet Corporation was fortunate in 

the cooperation of some of America sbest known business 

who urged support of American ships

In addition to newspaper and magazine advertising 

campaigns were carried out through the medium of ex

expositions and fairs by means of motion pictures and 

displays and by direct mail campaigns Special adverti

begun during the year for the passenger services offered by 

motor ships of the American Pioneer Line which make 

interesting voyages to Australia India and around the 

low rates

The sale of the United States Lines and the American M

Lines will result in a great reduction in advertising activ

expenditures in the ensuing and following years

INSURANCE

Marine Insurance

Under the provisions of section 501 of the merchant marin

1928 the Shipping Board has created an insurance fund in 

to insure the legal and equitable interests of the United S

certain vessels With the establishment of this fund the 

insurance activities of the Merchant Fleet Corporation to

wider scope of activity and purpose than heretofore At 

of the fiscal year 1939 insurance in this fund totaling 

mately8000 was in effect on 153 vessels and 41 a

vessels were bound but their insurance amounting to 

12000had not yet attached

For the establishment of this insurance fund the Shippin

transferred from liquidation receipts the sum of 3500 

premiums totaling about 700 0 were collected before th

the fiscal year Charges against this fund during the fis

for claims and losses paid and for administrative expenses 

428 000 leaving a balance of3712 000 in this fund as of 

1929 At the end of the fiscal year there were 126 claims 

against this fund in the estimated amount of 577 000 but c

ing recoveries which will be made against third parties in

general average these claims will probably be settled for l

the estimated amount The bad winter of 192829 in the 

which marine publications have stated was the worst in 5

gave rise to unusually heavy claims for ice damage and thes

represent a very large proportion of the losses The loss of 

sel alone in the Baltic during the past winter resulted in the 

of 210 00 from this insurance fund

In addition to the insurance already described the Mercha

Corporation continued to maintain a marine insurance rese
THIRTEENTH ANNUAL PORT UITED STATES SHIPPING BOIE

which marine insurance damage and loss claims for vessels o

the Shipping Board are paid Premiums credited to this 

during the fiscal year amounted to 2300 0 while cha

claims arising in 1929 and preceding years and for 1929 ad

tive expenses totaled about1500 0 The latter amount 

the fire loss of2000 on the Steamship America which 

recovered later by court action against the Newport New

build ng Dry Dock Co

The large number of ship sales during this and precedi

years made necessary the examination and approval of h

bursements and protection and indemnity policies inclu

newals in the amount of 217 500 0 furnished by purch

Government tonnage to protect the interests of the Shipping 

Further efforts have been made to convince underwriters 

improved condition and operating record of Shipping Boar

entitles shippers to the benefit of reduced cargo insurance ra

the result that the highest rating class A has been gra

steamers of 11 of the lines operated by the Shipping Board 

vessels operating from the Gulf are considered firstclass car

by the cotton underwriters

Protection and Indemnity Insurance

During the fiscal year 1929 protection and indemnity 

against Shipping Board vessels were handled through the 

States Protection K Indemnity Agency Inc on the sa

described in preceding annual reports

Excluding numerous small claims handled by managing o

under their delegated authority a total of 2G0I new clai

received by the agency during the year while 2910 were se

approximately 10 per cent of the amount claimed At th

the

8

fiscal year there remained a total of 1058 claims i

8G0 00of which 535 claims were in litigation

The total amount expended for protection and indemnit

settled by the agency and also by managing operators toget

miscellaneous expenses in this connection was approximate

000 in the fiscal year 1929

Including claims pending in the home office of the agen

being handled by the London office and claims pending in 

managing operators there was outstanding at June 30 192

of 2151 claims involving 11732 000 of which 620 claims 

litigation Comparison of these totals with those reporte

end of the preceding fiscal year shows a net reduction of 7

amounting to 1439 000

In June 1929 the Shipping Board accepted an offer mad

Marine Office of America to purchase the United States P
110 THIRTEENTH ANNITAI REPOnT UNITED STATES SHIPPI

Indemnity Agency Inc and to undertake protectio

denmit coverage of Shipping Board vessels The purcha

pany is a combination of seven American insurance comp

the Shipping Doard in authorizing the sale was guided by 

to give these companies an opportunity to develop prote

indemnity insurance under private ownership and operat

with the development of private American shipping

Under the terms of the sales agreement the new coverage 

to each vessel upon completion of discharge of all cargo a

port of discharge in the United States subsequent to midn

30 1929 Protection and indemnity claims which were p

the close of the fiscal year 1929 and those which arise fo

which were incomplete at the end of that fiscal year will b

by the protection and indemnity claims division of the 

Fleet Corporation

FINANCE DEPARTMENT

The closing of west coast offices and the assumption 

supervision over the cashier sdepartment of the United Sta

on account of the sale of that line to private operators we

cally the only changes in the organization of this departme

the fiscal year Otherwise the organization and activities 

department which have been fully described in previou

reports continued with but little change

Cash Discount and Interest

Careful attention given to cash discount privileges and 

tion of interest on bank deposits resulted in cash discounts 

141 000 and interest collections of 336 000 in the fiscal yea

Cash Accounts

During the fiscal year the total number of cash accoun

tained by the Merchant Fleet Corporation and the Unite

Lines was reduced by 93 This redaction was accomplishe

continuing clearance accounts formerly utilized by managin

tors and by consolidating and closing accounts as a result o

lines The sale of the United States Lines alone permitted 

ing of 56 cash accounts and the 20 accounts of that org

which remained as of June 30 1929 will be closed as soon as 

and funds are consolidated with those of the Mercha

Corporation

As of June 30 1929 there were 155 cash accounts being ma

of which 20 were United States Lines accounts 41 subag

counts 14 were accounts carried in the United States Trea

80 were miscellaneous accounts in commercial banking in

all over the world
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

Approximately 20600 0 was deposited in the Unite

Treasury during the year in pursuance of the policy inau

several years ago of transferring to the Treasury all funds 

mercial bank accounts not immediately essential to o

activities

Collection of PastDue Accounts

During the fiscal year 148 pastdue accounts amounting 

185 000 were collected settled or adjusted and at the en

year there remained 184 such accounts totaling 30456 000

Dousing Properties

At the close of the fiscal year the board still held posse

12 properties in Camden N J which could not be conveyed 

of uninsurable titles Certain utilities park spaces etc in 

localities were also held pending completion of conveyanc

ments with municipalities One property in the city of Phila

recovered during the preceding year through foreclosure proc

was sold and conveyed during the fiscal year 1929

The Liberty Housing Co Dundalk JId and the Wyandot

Co Wyandotte lltich which were organized to hold title 

housing projects constructed in those cities by the Shipping 

were dissolved during the fiscal year The following co

which were incorporated elsewhere for similar purposes 

in existence Fairview Realty Co Camden N J Noreg Re

Brooklawn N J Federal Home Building Co Lorain O

It is expected that the dissolution of the last two companie

above will be completed early in the ensuing fiscal year

Securities

The volume of ship sales and the number of constructio

made during the fiscal year were largely responsible for in

the face value of notes and other securities held by this dep

to a total of 6752102 19at the end of the year This 

increase of nearly 10000 over the total at the beginnin

year In addition collateral securities to the value of530

were at hand

Payments made on the principal of securities as well as p

for interest materially exceeded the amounts collected in 

ceding vear

Consolidated Cash Statement

A consolidated cash statement summarizing the financia

ties of the United States Shipping Board and the Mercha

Corporation during the fiscal year ended June 30 1929 is 

Table III of the appendix
112 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPIN

GENERAL COMPTROLLER SDEPART31ENT

The personnel of this division was considerably reduce

the fiscal year without any material change in the form o

ization which has been described in preceding annual repo

reduction was accomplished by closing offices on the west c

at South Atlantic ports following the sale of lines and by 

minor consolidations and reassignments of the duties of o

personnel iii the department

Close attention to audit procedure and operating accounts 

in improved conditions and special instructions issued in 

tion with the supply department have done much to imp

purchasing procedure of district offices

Aside from its regular duties this department exerted 

effort to assist the legal department in handling claims and 

in litigation

The balance sheet as of June 30 1929 and the profit 

statement for the fiscal year 1929 are included in the app

Tables VIII and Y respectively
APPENDIX

APPENDIX

ep rLm IVessels sold and vessels disposed of other than by sale d

fiscal 11car Ended June 30 1929

Name weight Dead Gross toy Sale price Purch

tons

STEEL CARGO VESSELS

Vessel sold for avr Mded

operation

Cbamberino 3610 2323 360000 Baltimore 

Steamship 

more City

Democracy 7323 430 176450 00 25i00 The Charles 

Hutchinson 5219 3545 140061 5 4938 50 Chas It 

Lumber C

West Hembrle 8570 5779 109 0250 975 00 Dimon ware Stea

poration

Lake Festus 4000 2571 126 744 20discoum 145 80710 00 Gulf ship Line Caribb

I

Delight 7650 5141 142 100 00 12900 001

Same Griffi

Inc

West Hnven 8619 5761 138 0000 Los Angeles 

West Liames 8543 5673 198200 00 1 BOO 00 Co

West

Moshico

Hosokie 8551 5961 179 0130 20870

5273 3658 250000 Lykes Bros 

Co Inc

Lake Getuv 4316 2677 135discount 2 53978 00SSW Merchants 

Lake Furnas 4336 2677 13348 00 1692 00 Transporta

discount 700

Eastern Leader 6 248 4002 1 60240 discount GO 1760 lCI D Mallor

Westbrook 8 MO 5742 90 OW Go

Westland 80 5832 132 01X1 Shepard Stea

West Cheraw 8562 6188 117 000 00

West Wrmeke 8635 5705 170 2800 2772 001Sudden k Ch

WestBridge 8504 5799 57 OWW

Total18 125 fi9 83144 1 203 fi31 70

IaM said laUh prigit gaof

transfer to foreign registry

Chantier 3610 2323 3400100 Oleo Irmilan

Chaparel 3610 2323 36 01q W E A Hanse

Eastern Belle 4952 293

1

80 cost go

Lake Elmsford 27455 00 W

Lake Elmwood 4278 2674 32 go go 4545 Soham G O

Lake

Lake

Elva

El Pueblo

4278 2674 1 2 6A 1W

4261 26541 129875 00 1125 W

liar Hmbar 8585 2420 31X00 Emil Stray

York harbor

CopsIffove 353

1 2427 133 71X1 00 13001I Chr Stra

630 2324 27 OW 00 If

Total10 39953 25430 360 6

Footnote at end of table 
116 TIiIPEEINTH ANNUAL nr POl T VPEED STATES SHIPPI

TABLE LVrssels sold and vessels disposed of other than by sale 

fiscal year ended June 30 1929Continued

Dead Groxs Name weight Loos Sole price Pur

tons

n

Vessels sold for restricted opera

tion on trade routes

American Scantic Line addi

tional vessels to augment ser

vice sold in 1927

7825 5021 469M DO

wry i 7825 5053 46950 00

7125 4974 41951

7840 4 018 1N Ow W

African Line

8789 S Bea 238 621 35

657 4839 207 88 55

sw

7659

8 551

4838

5 527

20941 85

232 241 10

8 759 5 900 217 806 85

852 5620 231 508 05

8 fey 5610 232 59 75

aw 9 5 5r 23315 65

R 54 5627 232 241 10

7632 4957 2U7 208 80

Naamhok Delanson Waterbury

Gulf Brazil River Plate Line

A

Bibbco Cases

Clavarack

Clearwater

leta

a

a

a

Lorraine

Salvation

Cross

Lassa

l

Saugerties

scha0die

1est Carom

s

L

West

West Neris

Segovia

a

a

Pacific Argentine Brazil Line

additional vessels to aug

ment service sold in 1926

West Ira

Cast Ivis

Oregon Oriental Man addi

tional vessels to augment

service sold in February

1928 West Hartland

West Darts

8727

8542 62925825 7940655

766 859

8624 55

5976 69452 50

5 959 91 Me M

5101 a10000

5052 219 490 00

510

501 1

219 40 0

219 9110 60

590 219 980 00

4 970 219 950 W

5127 219 480 W

4985 219 490 00

5101 219 490 00

4932 219 4S0 00

55745 1 242 100 00 588 219380 00

6187 241 900 00

I

5879

5 866

50364 2

50 404 50

5721 120 40 00

6167 1 O4 UM OO

Coldwater 7910 5110 23520 00

Liberty

FluorSpar

Glo

7825

7825

5055

4959

23475 W

23475 00

Afagmenc I 7810 5172 23520 00

Fchoharia 7925 491 34500

Shickshinny 7R5 5103 69475 00

Fundance 7840 S1hM1 23520 00

Tulsa 7925 5083 LR 475 00

NN ildwood 7940 S Ufd 2 620 00

Saccarappa 7825 4965 23 475 W

Total 43 350 141 229 602 15879M3 30

Vessels sold aith longer under

contract to PerJonn specified

iterationbetterments

Terre haute 48755

John Jay l128iA

James Otis41281

Kescinszko 7371

Care Remain 7371

M hooka 5238

Houton fi 296

Mehinkis 4 9648

Diablo 49656

Footnotes at end of table

Stea

Arg

I

Steam

Atlan

of Dela

5670

82

350000 American St

92 50000 1 potation 8 202 4 57 7300

5

2

4 695010 00j

263 W

4 9ti 2R46915000 00W 6 1A II Bull S

3545 4 18 420 00 6650 W l Ovlt Pacific 

3545 25 100 W f1

5049

25 MO jO En

5M7 25 WO W Drydr dock C
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

TABLE IVessels sold and vessels disposed of other than by sale d

fiscal year ended Jane 30 1929Continued

Dead Cmas

Name weight tons Sale price Purcha

tons

Veasele sold with buyer under

contract to perform specified

alkrafionbettermenfa Coa

itnued

Total15

Vessels aotd with buunder

tram to dismantle and atop

Lake Elmdule

1411 0 ORS 115 0000

53 3 5 5 413 691 66

5231 3545 25 too 66

5314 3545 256666

591 62 3513353 l

W 000 be

115 54 75157 476 19 03

Ilavllabes

Ilehers

Fort Fort H alne

Anniston

Anthracite Bridge

Asquanl Aaclmp

calon Clark Mills

Cwa

Des

ut t

h

M

yllto

Bridge Fnamourth u Alabama

lIngnld lico

Lk lie Lnu ffls B ridge Bridge

AI tastYL an B

At Dlinnuwawa on Bridge

Alanana

Alount Vernonybridge Na Mount National

Nesc

getional Bridgeridge

Noddle

Nonentu

lele Island anmlmd

Northwestern B

Passaic Bddee

PPhoenix Bridge

panda

Schuylkill SS0Tnga Agaoag t ritlge

Toone

Tnnesit Tuladj 4Wcod Nodmnnall killl Bridge ie

Footnotes at end of table

90f 626e33i14 24431560

7Si 4F341 l925

19is

3

60100 0

032ws7 21 04 135154 2S3 015 233 571 2S3WS 515 2M

24000 00

15 o6c Wp m00

Oo OW

20 OOO 00

423 M0 00

545

24379 545

2h333S7505 213

Los Angeles St

New Orleans 

American St

fine

C D Mallory

Boston Iron 

P Cox Cor

mmond Lu

s Ar7 les S

Union Shipbu
118 THIRTEENTH ANNUAL REPOLT UNITED STATES SHIPPIN

TAUF eLVessels sold and vessels disposed of other than by sale 

fiscal year ended June 30 1929 Continued

Dead Grass Name weight tons Sale Price Purc

tons

Vess berld Iithbuyrrundercon

hart to dcsmandc and acrop

Continued

TotalS2

PASSENGER AND CARGO

Vessels sold far restricted opera

tion on trade mates

Toiled States Lines

American Banker

American Farmer

American Merchant

American Shipper

American

Total 11

REFRIGERATORS

Verse asold ror unrestricted oper

alion buyer obligated to per

form betlermenz

Nelsonset 1

Vessels sold for restricted opera

tion buyer obligated to inaRgu

rate rehigercto seraice bet eea

speciped Month Alamo Porto

and London

9 248 6 012 I

a248 6163

b 790 57M

859t 5703

8627 5724

9243 6139

818 6240

8627 6338

8726 5714

9410 6036

8759 5720

8750 5623 8385 0000 Union Shipb

5910 3961

5940 4045

9419 6034

8591 6202

9410 60011

S 735 5 fins

S 6fq 5600

b G0 5 Gig

8600 548

S aKl 5749

9248 6073

52449 1 341 70 1008 600

5994 6 782 000 00

21329 2 000 OWW

1M 2 NA OW 00

13869 1000 ow Go

13 8f9 1A Ore 00

17010 10000 United States 

7430 4f0 OD W

7430

4R 410

4r

GqW

UM W

7480 4G0 000 W

7430 4GO 0000

9737 7435 120 000 Luckenbach 

Co jlran

King 6103 4715 t3 100 00

uscatine 6103 4708 r3 200 00

Total2L 20 9423 6300 00

Footnotes at end of table
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

TABLE IVessels sold and vessels disposed of other than by sale du

fiscal year ended June 30 1039Continued

Name wDead Gross Sale price Purchas

tons

tons

S

STEEL TANKERS

Vessels sold for unrestricted

operation

Dilworth 10000 7045 1602 73 43 2249 10 Antietam Stea

1 Figure represents net return on sale of vessel after deduction of credit account bottom 

chargeable to insurance or a cash discount allowance

1 Buyer obligated to recondition vessel

4 Vessels on which Agreement of Sale has been executed but on which title was not trans

June 30 1029

4 Buyer under contract to Install reciprocating engine as major betterment

4 Dismantling and scrapping to be accomplished abroad

DISPOSITION OF VESSELS OTFIER THAN BY SALE

mean Gross Name weight tons Sol Price Transferee

Transferred to other

Government de

8 795 57201 Without exchange of fundsInland 8

Waterways 

765 5674 doJ p Department 8

or Deparent 627 5718 do

War Department

Bureau of Insular Affai

partment
120 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPI

TABLE IVessels sold and ressels disposed of other than by sale 

fiscal year ended June 30 1929Continued

ADDITIONS TO SIIIFFING BOARD FLEET

Name weight DCad G099 tons Price Transfe

R

tons

Num Dead Num

Transferred from other Government departments

bar Num 

R F No 5 wooden barge Navy De

Motor launch No 2819 wooden Treasury 

Purchased at United States court sale

end cargo I 17000

Koseiuszko 7371 4986 46000

CTankers argo tors

TABLE ILVessel property controlled by the United States Ship

Merchant Fleet Corporation as of June 30 1929

jThis report is based on information received through July 1 819 affecting status of ves

30 1921

NO2EEreludes launches barges and minor auxiliary floating equipment

Total Contract R

Num Dead Num Dead

bar Num 

weight tons her weight tons her 

Steel vessels end cargo I 17000

CTankers argo torsI 57430x 9729 691770277297 95651 3 70941907 10 000 71 

Tugsug Unfinished cargo 9999 41 9 9U0 1 91409

Total

Concrete vessels Tankers

Weed vesselsTugs steel 5937I

4843 37

i 7500 46417 3 T17500077

10

Total 601 4 liA 873 472 3778 57 IN 

Purchased Seized enemy Ac

othe

Num Dead Num Dead Num 

bar weight one ber weight tons bet 

SteelPassenger vessels and cargo

Tugs Cargo 13 1 292 2 17000 535

Totalsteel 13 106 292 4 34535 

NO2EEreludes launches barges and minor auxiliary floating equipment
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

TABLE III Status Of res srl controlled hg United Slates Shipping Bo

chant Fleet Corporation as of June 30 1929

This report is based on Information received through July 1 1affecting status of vessels J

Number 

In hands of operators or charterers

Operating In specified services United States ports to foreign ports 194 

idle status with managing operators 24 

Coaltrade 10 

U S Army service 1 

Under bareboat charter 2 

sSteel bareboat 4

Wood in service with Resen eFleet 7

Total in hands of operators or charterers 242 

inactive with Merchant Fleet Corporation or shipbuilders

Tied upon tionspart

Spot with operations opera 32910 

llizing 5 

Passenger tied uP

Refrigerators

Tankers

tied uP 102 

Concrete

tiedup 21 

Total inactive flee L 359 

Total Beat

8U511MARY OF TOTAL FLEET

Active I

Inactive I T

Dend Dead 

Num weight Kum weight Num 

bar tons

her

tons

bar

231 205104

egers 344 26x0 6i 2 

I

eratorsv 0 27 0 

3 24517 3 

Total 242 205104 359 v J9 869 601 

79144 299
122 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPIN

a G

ULm J n

O p Ov0 C a

p a Ji e

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O q O GOC Oo

mo

BSA t Wnro i A

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a aa BCa c u gip

4 act x

J

a

9

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EgF G CmUOC iFuiu L
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOARD 

TASr EVServices maintained by the United States Shipping Board M

Fleet Corporation as of June 30 1929

Number 

o 

services 

European 21 

Mediterranean 5 

Routh Amerleau 8 

Far East and long voYage 4 

Total cargo services 38 

Coal trade 1 

Grand total 39 

NOTE For names of lima 1 each trade see pages 124 and 125
124 THIRTEENTH ANNUAL REPORT UNITED STATES SHIP

rou

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THIRTEENTH AN aORT UNITED STATES SHIPPING BOAR

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THIRTEENTH ANNUAL RETORT UNITED STATES SHIPPING BOAR

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TIIMTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

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130 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPI

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THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

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132 THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPI

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THIRTEENTH ANNUAL REPORT UNITED STATES SIIIPPINO BOA

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134 THIRTEENTH ANNUAL REPORT UNITED STATES SHIrPIN

H i i i i

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THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

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gamecaANNUAL REPORT UNITED STATES SHIPPIN
THIRTEENTH ANNUAL REPORT UNITED STATES SHIPPING BOA

TABLE VIII Balance sheet ae of June 30 1929

ASSETS

A11 Cash and unrequisitioned appropriations available for general purpOSes 3Q 

A12 Cash and unrequisitioned appropriations available for operating contingencies 

A13 Cash insurance fund merchant marine act1928 

A2 Cash and uvrequisitioned appropriations available for settlement of claims appro 

potation act fiscal year 1923

A3 Cash and unrequisitioned appropriations U S Shipping Board 

A4 Construction loan and Dieselirati0n foods 0

A5 Accounts receivable 837 418 300

Less payable offsets SIR 416 65

Less claim offsets 17917 491 01

Less reserve for doubtful and uncellectible ac

counts 15 322 250 43 3418178 09 

A6 Accounts receivable of managing operators 

A7 Notes receivable

2617 81

Less claim offsets 59 589 64

Less reserve for doubtful or unrollectible notes 192 976 72 252 608 38

A8

Operatingmaterial for 

A9 Surplus Surplus aterialforsale 

A10 Land st rem s and equipment forsale

A11 Mortgag pymcoa leavd Securities 130 4

579924 85

LessPayabl 130 4rp 95

Lass claim offsets 1709 444 00

Less ma0rve for estimated value 1482 2330 322 1385 

A12 Accounts and notes receivable for ship sales 43 903 433 36

Less payable offsets 56 467 28

Lass claim ofiseta 38179 75

Less reserve for uncollectible accounts and notes 801 fi 07 1 329 951 10 9

A13 imte and ea

i

A14 Estimated F rerovemvague value of claims ms itov favor of S Shipping Board

Float A15 Deferredfat dapn d value 

A16Defersed eerountsts and commitment charges 

Total 3

2

LIABILITIES

L1 Accounts payable and unclaimed wages 4 VIA 718 O6

Less receivable offsets 904 849 71 

U2 Amounts payable managing operators 555501 

LJ Deposits onn sales and other contracts c s not consummated 3479 556 05

Less receivable offsets 159 441 31

L4 Suspense Credits tr from ship sales contracts not f by

purchasers Lessha rersl 76012 42Less receivable offsets 60 073 86

L5 Commitments for insurance than a losses 

L0 Reserve for suranceee claimss and fosses 

L7 Reserve for ope mi t ts w

L8 e for claims uLus settlement ttlan and ants Payable 

Reserve fin fund s

1 Unearned e insurance merchant marine act1929 

LIIlO2 premi insurance tune merchant marine act 1929

Reserve for at tuion i ohtaken back from purchasers 

Net worth as at une 30 19 2

Totxl 3

2
10 THIRTEENTH ANNUAL REPORT UNITED STATES SIIIPPIN

SCJiIDULE 1 cpsh and unregnisitioaed appropriations available fo

purposes as at June 30 1029

Cash available for general purposes before adjustmentCash in U S Treasury in banks

in hands of mmagin operators and in transit to detnsitors 

Unrequisitioned appropriations emergency shipping fund 

Plus amount to be transferred from insurance fund to operating fund subsequent to Jane

30 lOTJ 

LessAmount to be transferred from operating fund to construction loan food

subsequent to June 30 1920 6 031 13

Amount to be transferred from operating fund subsc luent to June 30

1 929 representing adjustments of Dieselexpenditures 594 46

Amount to be transferred from operating fund to Dloselizatian fund sub

sequent to June 30 1923 in accordance w ith Flipping Board resolution

of Oct 4 1929 757 405 76

Amount to be transferred to construction loan fund subsequent to June

30 1929 representing excess of soles receipts over liquidation expense re

qufremenls 7436 301 21

Amount to be transferred to operating eardingencies fund subsequent to

June 80 1929 133955 79 

Total cash and unrequisitioned aDDropriations available for general purposes as of June

30 1929 

COAEDCLE

as shown

2

bu

Peconciliation

the bulance

of

short

cash and

arith

unrequisitioned

Treasto erscas71

appropriatio

and ap

statement ae at June 30 1929

Total cash and unrequisitioned appropriation badetwes per Treasurer sstatement June 30 

Balance sheet spplical ion of the above total

Cosh nil unrequisitioned appropriations available for generalJnrposes

Schedule A11 30925002

Cash doming contingencies fund SCl edule A12

63s5rc 79

Iosuranee Rmd merchant marine act 1928 8cbedale A l3 3807 23290

tI Jots fundcash and appropriation babmce fund est ddisiied by Fleet

Corpta nion appropriation act far the fiscal veer IJ2i ldchclole A 21 1 622 096 as

l 8 Shipping Bnad 1927 cash in d appropriation balance CFche dole

A 31 1 10909 78

U F Shippping Board 1928 cash and appropriation balance Schedule

A3L 1771 80

U 5 Shipping Board 1929 cashand appropriation balance Selin ile

A II 19059 38

Anmt tit set aside for coast nmifan loan fond as authorized by sea 11 of

the merchant marine act of 1920 and amendment thereto approved

Mnr 4 1927 ScheduleA4 70 616 373 01

Amount established as stand for the Diesclizotion of cessols Schedule

A1

2534 41Yt 50

Total cash and mrequisitioned appropriations per balance sheet of Jnne 30 1029 

SCIJEDLR E3Cash and tntrequisitioned appropriations available for

United States Shipping Board as at June 30 1929

CashAvailable on salaries and expenses 5scal year 19251 12 3

78

Available for printing and binding fiscal year 1929 

Totalcash 

Unrequisltiuned appropriations

Salaries and exSenses fiscal year 1927 1090

29

Printing axid binding fiscal Y ear 1 927 

Salaries and expenses fiscal tear1928 177

8

Salaries and expenses fiscal fear 1929 3 5

6

Printing aad binding fiscal tear 1929 3

Total unrequisitioned appropriations

Total cash and unrequisitioned appropriations United States Shipping Board 

Less amount of 1027 appropriations unrequisitioned Mat June 3Q 1929 tabs covered

into the U S Treasury subsequent to that date

Salaries and expenses fiscal Year 1427 1090

28

Printing and binding fiscal Year 1927 

Cash ant unrequisitioned appropriations available far expenses of U S Shipping Boa

1 The unexpended balance of this appropriation as at June 30 1929 will be covered into t

ury M of July 1 1923 amt this amount has therefore been deducted from Schedule A 3
THIRTE ANNUAL ORT UNITED STATES miprING BOA

t

4

9nl

zaaa aaaa as 

2

t

4
142 TIIIRTEENTII ANNUAL IIEPO RT UNITED STATES SHIPPI
THMTEENTIE a a REPORT UNITED STATES SHIPPING o 

R

P R

cI

i

j

i
144 TFIIRTEENTII ANNUAL REPORT UNITED STATES SIIIPPI

TABLE SINames and compensation of empioyees of the united S

ping Board in the serried on June 30 1929

Name Designation Legal residence 

Adolph Amends Reporter 473h ama 

C O Arthur Director Bureau of Regulation Indivn

Edward J Raines Assismnt clerk I District of Colum

Zelda

Roth

dank Senior typist tlo 

RIn1Cr ICik ALSanllrl 

tLBo RobertdLaborer District of Columb

U live Brownell Fcnior ti pist d0 

Mahal G Carragher File clerk Massachusett

Lora S Cass Senior stenographer OAlahoma 

Lathe B CLapmen lark Dishietof Colum

Jean Colwell Junior clerk iieLigan 

Ilu tch L CoeCammissianer FlOritla 

Raymond J Connolly Axsistautstab Aical clerk Abssulmsell

Edward P C utter head of foreign Port surveys Connecticut 

Rise Ile AT Curry senior stenographer District of Columb

Maude Darracolt L ilo I South Carolina 

Albert C Davis Cabinetmaker Vircinin 

Olive

District of Columb

0

mrtea

commissioner do

clerk

do

Ohio

clerk Disrict of Columb

ut chiefclerkI New Jersey

ry

one operator 1 District of Columb

9er

I Pram yllTo

auto

0 Pist ATCirgiuia issuuri

stenog rapher ALn land

Mary AT Amwell Junior statisticalclerk Ratesas

Fettle P King Assisi ant section chief Manl md

Larkin C King Laborer District at C

Olive V Sing Clerk

William T Latham Cnrtographor

do

do

Leon A LeBUtie Clerk South Catch

Manila R McCue I Secretary to director Bureau of Be Virginia

search

Bessie C Mallfcote Stenographer District of C

Lucy A Marsac do State of Rat

Julius Manns Laborer District of

Jefferson Myers Commissioner Orrin

John Nicolson Director Bureau of Traffic New Fork

Alf B7 Nels Translator Minnesota

Alice F Noliner Senior stenographer District of C

T V OConnor Chairman New York

M JPierce Chief clerk Tennessee

E Plummer Commissioner Maine

Logan Preslcr Clerk Ohio

secretary AlarJland Risennsin

her Ohin

h operator District of Columb

Indian

menus sum r

Louisiana

Califumi

aisL Maryland

t operator District of Colum

to the secretary do 

typist Pen iva ni
THIRTEENTH ANNUAL REPORT UNITED STATES SNIPPID GBOAR

Namcs and compensation of employees of the United States Shipping Bo

have been in the service some part of the fiscal year ended June 30 

Name Designation Legal residence Rate annumper s

Arthur M HOaL Admiralty counsel Massnehnsetts 10 nn0 J

Lylle H Buskey Attorney New York 4600 J

Mnson L Fowler Purchasing agent Snarl Carolina 3 lull N

Erelyn M Gilem Clerk to cumissioner m District of Columba 2 Ono J

Alice S Murray Senior clerk Massachusetts 2300 A

Linda M Shennbev Clerk to commissioner District of Columbia 2 600 J

Ale saoder R Smith Emminer New York 3000 M

Virginia M Stetson Minor library assistant Virginia 1200 A

Florence J Van Acker Library assistant District of Columbia 1740 O

Bertha ae Lacy E W elle Clerk do 1800 M

Albert C Wjraberly Junior clerk I

do 1440 1

A

INDEX

Accounts cash 

Merchant Fleet Corporation 

United States Lines

Accounts receivable 

Accounts settlementof 

Administrative expenses reduction in 

Admiral Oriental Line mail contract 

Admiralty division report 

Advertising 

Agreements carrier sfiled 

Agreements operating new 

Agvi Navigation Co Ward Line loan agreemen

Aid given vessels by tax exemptions 

America France Line 

American Brazil Line 

American Diamond Line 

American Gulf Orient Line 

American Line Steamship Corporation mail contrac

American Merchant Lines sale of 

American Republics Line 

American Scantic Line mail contract 

AmericanSouth African Line

Loan agreement 

Mail contract 

American Steamship Line loan agreement 

American West African Line mail contract 

Appendix 

Appropriations and allotments Table IX

Argentine prejudicial delay at BuenosAires 

Atlantic Caribbean Steam Navigation Co mail contrac

Australian tariff regulations 

Balance sheet Table VIII 

Boston Shipping Board piers at 

Brooklyn Shipping Board piers at 

Bunker deliveries

Coal table 

Fuel oiltable 

Bunkering 

Bureau of Construction report 

Bureau of Finance report 

Bureau of Law report 

Bureau of Operations report 

Bureau of Regulation report 

Bureau of Research report 

Bureau of Traffic report 

Canadian preferential tariff 
148 INDEX

Cargo services cost of maintaining 

Cash statement consolidated TableVII

Castner Curran Bullitt Inc litigation 

Centralized purchasing 

Charleston S C Shipping Board terminalsat 

Chart organization

United States Shipping Board fac

United States Shipping Board merchant Fleet Corporation faci

Charters of Shipping Board vessels 

China import tariff 

City of Ellwood motor ship 

Claims handling of by legal department 

Coal

Bunker deliveries table 

Pulverized testsof 

Quantities purchased and costs table 

Trade 

Coamo Steamship Corporation New York Porto Rico Steamship C

loan agreement pending 

Coastwise laws

GreatLakes 

Philippine Islands 

United States 

Virgin Islands 

Codification of navigation laws 

Collision of vessels at sea 

Colombian Steamship Co loan agreement pending 

Competition Cuban passenger trade 

Competitive transportation through Canada 

Complaints

Formal 

Informal 

Comptroller sdepartment work of 

Cone HIcommissioner 

Conference agreements 

Conference on Merchant Marine Second Nationa

Consolidated cash statement Table VII 

Construction bounty 

Construction Bureau of report 

Construction loan fund 

Consular reports on shipping 

Contracts and opinions division report 

Conversion program Diesel 

Cost of maintaining cargo services 

Costs stevedoring 

Cuban passenger trade competition in 

Deckboys 

Denmark transportation of immigrants 

Denton Albert H commissioner 

Diesel conversion program 

Dollar Steamship Line

Loan agreement pending 

Mail contract 
INDEX 

Eastern Steamship Lines mail contract 

Economic division report 

Educational division report 

Employees Shipping Board list of TableXI 

Engineering development program 

Exenemy vessels seized Table VI 

Export bill of lading 

Export Steamship Corporation

Loan agreement 

Mailcontract 

Finance Bureau of report 

Finance department workof 

Fleet operation study of financial results of 

Flood Lines Inc loan agreement pending 

Foreign ports studyof 

Foreign registry transfer of vessels to table

Formal complaint investigations 

France

Customs regulations 

Inspection laws 

Vessel discrimination 

Free ports 

Fuel conservation program 

Fuel oil

Bunker deliveries table 

Foreign bunkering stations 

Purchases and issues 

Quantities purchased and costs table 

Storage stations table 

Galveston motorship 4

General comptroller sdepartment workof 

Grace Steamship Co

Loan agreement 

Mail contract 

Great Lakes coastwise laws 

Groton Iron Works litigation 

GulfBrazilRiver Plate Line sale of 

Gulf Mail Steamship Co mail contract 

GulfWest Mediterranean Line 

Haguerules 

Hoboken N J Shipping Board piersat 

Hog Island salvage operations at 

Housing mortgages negotiations 

IIousing properties 

Indemnity and protection insurance 

Industrial relations division report 

Informal complaint proceedings 

Insurance

Department workof 

Marine 

Protection and indemnity 

Interstate carriers tariffsof 

Investigations division report 
150 INDEX

Italy 

Inspectionlaws 

Panama Canal tolls 

Tradewith 

Visaing passports 

JonesWhiteAct 

Laidup fleet 

Land grant rates 

Law Bureau of report 

Leathern SmithNacco Steamship Co loan agreement 

Load lines 

Lindsey Lumber Co litigation 

Litigation and claims division report 

Loan agreements applications pending 

Losses operating 

Lykes Bros Steamship Co mail contract 

Mail contracts 

Maintenance of lines taken back 

Managing operators of Shipping Board vessels Table IV 

Marietta Manufacturing Co ct al litigation 

Marine insurance 

Maritime records Envision work of 

Matson Line Oceanic Steamship Co construction loan 

Merchant Fleet Corporation

Organization 

Organization

Report

chart faci

Merchant marine act 1928 

Minimum intercoastal rates control of 

MonticIlo and Mount Vernon steamships 

Munson Steamship Line mail contract 

Myers Jefferson commissioner 

NavalReserve 

Navigation laws codification of 

Davy vessels cared for 

New Orleans motorship 

New York Cuba Mail Steamship Co mail contract 

New York Porto Rico Steamship Co

Construction loan pending 

Mail contract 

Norfolk Shipping Board piers at 

North River Terminal New York 

Ocean mail contracts 

Oceanic Oriental Navigation Co mail contract 

Oceanic Steamship Co construction loan pcnding 

Mail contract 

OConnor T V chairman United States Shipping Board 

Operating agreements new 

Operating expenses retrenchment in 

Operating losses 

Operating results tankers 

Operations Bureau of report 

Operations extent of vessel 
INDEX 

Organization 

United States Shipping Board 

United States Shipping Board merchant Fleet Corporation 

PacificArgentine Brazil Line mail contract 

Panama Canal traffic 3

Pan American Commission on Customs Procedure and Port Formalities 

Pan American conference Habana 1 928 2

Philadelphia Shipping Board piers at 

Philippine Islands coastwise laws 

Piers Shipping Board operation of 1

Placements seaservice section 

Plummer E C vice chairman United States Shipping Board 

Port facilities division report 5

Port series reports 5

Portugal harbor master supervision in 

Profit and loss TableSL 

Protection and indemnity insurance 

Publicity 

Pulverized coaltests 

Purchasing centralized 

Radio division workof 1

Reduction in operating and administrative expenses 

Regional advisory boards 

Registry transfers to foreign 7

Regulation Bureau of report 3

Research Bureau of report 7

Reserve fleet care of 

Safety of Life at Sea international conference on 9 1

Sale ofships 388 

Sale of ships table showing 

Sale of ships to aliens 7

Sale of ships United States Lines and American Merchant Lines 3 8

Sandberg S S commissioner 

Sea service section avorkof 4

Secretary reportof 7

Section 15 agreements 

Services maintained by Shipping Board Table V

123

Ship mortgage act 8

Ship sales 38

9

Skinner Eddy Corporation litigation 

Smith John Russell litigation 

Smith Roland K commissioner 

South Atlantic Steamship Co mail contract 

Spain classification certificates 

Spain revenue act of 1928 

States Steamship Co mail contract 

Stevedoring costs 

Storage stations fuel oil table 

Strachan sSouthern Steamship Co loan agreement 

Supply and operations 

Surplus stores disposition of 

Tanker operations 

Tax exemptions vessels aided by 6

Trade routes interest in 
152 INDEX

Vessels

Acquired by Shipping Board Table VI

Traffic Bureau of report 

Traffic department report 

Transfers to foreign registry table 

Transports Army and Navy 

United States Lines loan agreement pending 

United States Lines sale of 

United States Protection Indemnity Agency sale of 

Venezuela buoy tax 

Vessels

Acquired by Shipping Board Table VI 

Constructed Table VI 

Controlled Table II 

Disposed of Table I 

Ex enemy seized TableVI 

Operation of 

Purchased Table VI 

Sold Table I 

Transferred from other Government departments Table VI 

Virgin Islands coastwise laws 

Voyages number completed by Shipping Board ships 

Warsaw rules 

York Antwerp rules 

9