Fourth A

O

Federal Marit

Fiscal Year En

For sale by the Superintendent of 

Washington DC20
FEDERAL M

WAS

JOHN H

JAMES 

ASHTON 

GEORG

JOHN S 
LETTER OF TRA

FEDERAL MA

To the Senate and the House of R

Pursuant to section 103 e o

1961 and section 208 of the Mer

fully submit the Annual Repor

mission for the fiscal year 1965

CONT

HIGHLIGHTS OF THE YEAR

SCOPE OF AUTHORITY AND BAS

INTERNATIONAL COMMERCE

Carrier Agreements

Exclusive Patronage Dual Rate Co

Freight Rates

Rate Studies

International Relations

DOMESTIC OFFSHORE COMMERC

Regulatory Activity

Special Studies

TERMINAL OPERATORS

FREIGHT FORWARDING

Licensing

Agreements

Rulemaking Proceedings

FINANCIAL AND ECONOMIC ANA

ENFORCEMENT AND COMPLIANC

Informal Complaints

Factfinding Proceedings

Field Investigations

Formal Proceedings

PROCEEDINGS BEFORE HEAIt1N

MARITIME COMMISSION

Final Decisions of the Commission

Decisions of Hearing Examiners

RULEMAKING PROCEEDINGS

ACTION IN THE COURTS

LEGISLATIVE DEVELOPMENTS

ADMINISTRATION

APP

A Statement of Appropriation and Oblig

30 1965

HIGHLIGHTS 

The Federal Maritime Comm

on international negotiations a

in fulfillment of its role in 

commerce

International Relations

The reaching of an agreem

nations for the furnishing of in

to carry out its regulatory resp

plishment of the Commission d

Major shipping countries of 

information required to help 

disparities

After the Commission sissua

information to determine whet

tory rate disparities internati

major shipping countries on ju

tions brought about a series o

shipping officials of the foreign 

Managing Director of the Fed

As a result of two special a

the auspices of the Organizat

Development in Paris an agre

furnishing of certain inform

firmed by an Agreed Minute 

1964 By the end of the f

agreed to be furnished had be

Commission
IndustryGovernment C

The Commission seffort

strengthened by President 

role of the American Me

committees of the Congres

with the welfare of Americ

In President Johnson sw

States of America our ma

of our Nation ssuccess and 

throughout the world I v

strengthen the thrust of the 

on the sea lanes of the wor

Throughout the year si

congressional committees 

Senate Committee on Com

Small Business and the 

Committee

The Joint Economic Co

hearings on Discriminato

of Payments with specifi

port and assist the Federa

statutory powers to protect 

terest in transportation 

and recommendations wer

88th Congress 2d session 

Before the Senate Select 

man Federal Maritime Com

in detail on contributions 

dustry to opening a greater 

In furtherance of its ind

sion in fiscal year 1965 init

information and assistance 

for shippers will be issued 

dures for seeking advice an

Commisison and from ocea

riers

Also in the interest of s

took action to establish an 

2
small claims thereby relieving 

and expense involved in litigatin

Noteworthy too was the Coms

ment of section 15 of the Sh

paralleled expedition more than 

terminal operators The Amer

described the Commission swo

industryGovernment teamwork 

In specific attention to dome

sion held meetings with carrie

the governments of the domestic 

eliminating from their tariffs ca

cess of this program was reflec

ings representing substantial s

mission and to the carriers and 

Also in this fiscal year the 

Alaska trade to learn from ship

ing and exporting their mercha

ocean lines serve these trades 

can be recommended and to 

to provide efficient service

The winter of 196465 mar

Port of Anchorage Alaska wa

months Sea Land Service In

with specially constructed vess

round basis

Other Significant Activitie

In other regulatory activities 

instituted on its own motion 44 

provisions of the Shipping Ac

Act 1933 issued 67 final de

ings approved under provisio

carrier agreements 133 term

warder cooperative working 

warder licenses processed ov

and denied 29 special permiss

freight rates in advance of the 

792 740 0652
to resolve over 600 inform

with respect to 390 such co

gation before the courts i

Commission concluded ne

those concerning violations 

ing the qualifications of ap

initiated three legislative p

law by the Congress during 

agement improvement prog

tive to administer the laws 

possible cost to the taxpaye

These and other fiscal ye

sequent sections of this repo

Special Activities of th

During the present repo

to Paris to meet with repre

rope and Japan On one o

panied by Commissioner A

man met with this same gr

the spring of 1965 He w

missioner George H Hearn

The Chairman and mem

and delivered addresses du

ress objectives and policie

ests in USforeign oceanbo

El
President Lyndon B Johnson at the Jw

Chairman and James V Day Vic

July 20 1965

President Lyndon B Johnson at the Swe

Federal Maritime 

SCOPE OF A

BASIC F

The Federal Maritime Com

nization Plan No 7 effective 

agency to administer the fun

authorities under the Shippin

1920 Intercoastal Shipping A

1936

The Commission is compose

the President with the advice 

missioners are appointed for 

that any person appointed to 

the unexpired term of the Co

than three of the Commissioner

party

The President designates 

Chairman The Chairman a

officer is authorized to appo

the exception of personnel em

missioners and to expend fu

The Washington Office is at 

district offices located as follow

Atlantic Coast District Off

Pacific Coast DistrictOff

Gulf Coast District Off
The statutory authorities 

the following principal are

and agreements of commo

sons engaged in the forei

acceptance rejection or 

carriers engaged in the fo

fares charges classificatio

common carriers by wate

United States 4 invest

classifications and practice

offshore commerce and 

and making rules and reg

carriers by water termina

persons subject to the shipp

8
INTERNATIO

Carrier Agreements

Section 15 of the Shipping 

all agreements and modificatio

riers in the waterborne comme

control competition pool or a

or regulate sailings regulate f

provide for exclusive prefer

ments be filed with and approv

tion Such agreements or mo

to determine whether they ar

between carriers shippers ex

American exporters and their 

operate to the detriment of th

the public interest or will vio

The Commission must appro

institute a hearing to determi

lished by said section 15 to 

agreements or modifications o

In fiscal year 1965 over 

by the Commission and prede

junction with the parties to d

date As a result it was pos

ing approved agreements from 

to 655 at the close

These 655 approved agree

rate agreements 16 joint co

agreements 21 pooling agr

transhipment and 79 miscel

ments
Activity in Proce

Fis

At the commencement o

Commission action 183 agre

15 consisting of 48 new agre

approved agreements Dur

agreements were filed 123 

The Commission approved 

the parties as a result of info

or revision of the agreement

the end of the fiscal year we

proceedings

The following table reflec

instituted to determine whet

15 should be approved disa

ACTION WITH RESPEC

IN DOCKE

Pending July 1 1964

Ordered fiscal year 1965

Approved after hearing

Proceedings discontinued or w

Disapproved after hearing

Pending June 301965

Exclusive Patronage D

Section 14b of the Shipp

87346 effective October 3 

permit with certain specifie

or conferences of a contrac

consignees equally which p

signee who agrees to give a

to such carrier or conferen

may have a direct impact u

it is essential that every effo

that are assessed shippers a

contracts are not discrimina

10
porters and importers and t

contrary to the public interes

Under Public Law 87346 

prescribed standards became 

pliance with the Act were fi

1962 Contracts so amende

lawful until April 3 1963 su

by Public Law 885 As th

was not further extended by 

not issue its decision in the D

the Commission issued inte

dual rate contract terms in ef

tracts until September 1 1

order to give the carriers and 

the newly approved dual rat

signed an interim binder with 

After the Dual Rate Cases 

ferences

decision with

instituted

respect

court

to certa

pro

rate contract forms The U

Ninth Circuit set aside the o

procedural defects and reman

for reconsideration 

contract as were not in subje

The Commission by order se

eted proceedings in three of t

the procedural deficiency 

case will be reconsidered by 

The following table reflect

ing applications on hand at 

ceived during the period a

July 1 1965

FISCAL YEAR 1965 ACTION 

PATRONAGE DUAL 

a Dual Rate Contract System

As of July 1 1964 

Terminated during fiscal ye

Approved systems in effect 

7912 740 OQ53
b Dual Rate Contracts fil

Public Law 87346 during 

Pending July J 1964

Filed fiscal year 1965

Remanded by court o

Approved fiscal year 1

Pending July 1 1965

Agreements 5200 5680 6400 a

to existing contracts

Shippers R

In the fiscal year 1964 t

procedures utilized by the o

of shippers requests and c

for this study were furnish

a purely voluntary basis o

mission order However 

mission sorders requiring 

the courts During fiscal y

and the reports have now be

involved The remaining f

during the pendency of the 

certain other inbound confe

zation This necessitated t

against this newly establish

the final report will be re

enabling the Commission to 

and complaints in that yea

Freight Rates

The statutory requiremen

freight rates by common ca

of the United States and co

in section 18bof Public L

tive on January 2 1962 

lishment of rates only after 

and practices which are un

12
tially provides that 1 all r

regulations governing the tran

assessment be published and 

or initial rates and changes 

or regulations which result 

shall become effective not ear

with the Commission except 

cretion and for good cause 

effective dates and rate chan

to the shipper may become 

with the Commission 3 no 

charge demand collect or re

than that which is published 

effect 4 the Commission s

and manner in which tariffs 

authorized to reject any tari

with section 18b or the Cs

Commission shall after hea

which it finds to be so unreaso

to the commerce of the Unite

Ta

The fiscal year commenced 

tariffs on file with the Commis

had grown to 2317 The re

initial tariffs and amendmen

83776 during the year Of 

ure to conform with the sta

survey of all filings received 

establishment of two new or 

Hence the total filings received 

and 251 328rate changes

Section 18h requires the 

tions the form and manner in 

published and filed In kee

1965 the Commission publish

Order 13 setting forth rules 

United States foreign trade

provide for the filing of tari
whereby they can be readily 

provide for a uniform tariff 

each tariff commodity desc

with a system of automatic 

Commission to automate t

data heretofore accomplishe

will greatly assist the Com

sponsibilities over ocean rate

Section 18balso author

for good cause to permit r

notice to become effective on 

Commission received 177 s

the 30day statutory filing r

granted 20 were denied and 

Rate Studies

The Commission continue

rates on selected commoditi

the United States to determ

being adversely affected an

Commission could be of as

found to be in existence

The Commission also cont

cipal inbound outbound trade

obtaining the elimination of 

against the export commerce 

Information concerning th

further detail

International Relations

The Federal Maritime Co

laws of the United States wa

the international field

The foremost problem was 

rate disparities in the forei

States Two special ad hoc 

14
under the auspices of the Organ

Development

In these two meetings the C

explained the USshipping law

must have information in orde

raised by alleged rate dispari

European governments Japa

the conclusions of discussions 

ments for an exchange of infor

tion with its study of rate dis

firmed by an Agreed Minute

After the conclusion of the 

several meetings with foreign 

ference officials in which an a

information which would be fu

cal year all of the information 

been received by the FMC

This marks a milestone in 

is probably the first time th

gathered in one location

On March 3 and 4 1965 the 

Director attended a meeting o

the OECD in Paris for consul

shipping

On March 23 24 and 25 

Secretary of State for Econom

of 11 maritime countries at th

New York to discuss problem

jects discussed related to the 

a review of the complexities 

that they might be adjusted 

further meeting was schedule

The United Kingdom on J

tracts and Commission Docu

might be used to counteract a

lation The Federal Republ

which became effective July 1 
Foreig

The FMC under section 

is responsible for correcting 

requires that the Commissio

laws and regulations issued 

whether these laws contain 

USshipping services to thos

Foreign regulations have 

upon the operation of USfla

shown that in several cases of 

lines participation in moving 

as 50 percent

There is a growing tende

world for governmental cont

number of developing count

benefit of their own national 

the operation of USshipping 

Such discriminations take 

degrees of justification but t

control of commercial cargo

flict with USshipping pract

tion of US shipping lines 

discriminations As stated a

is to endeavor to bring abou

governments which discrimin

Every effort is made to 

practices through government

ever when such efforts are 

fronted with the necessity of 

to section 19 of the Merchant 

the effect of these antiUS d

withdrawal

In December of 1964 the 

orders to correct discrimina

Uruguay against US shippi

that the Government of Urugu

lation which would eliminate 

order was held in abeyance a

Government of Uruguay

16
L

Liaison is maintained with 

international shipping as well 

international organizations 

State is required in all types 

concern to the United States
DOMESTIC OF

The Commission regulate

common carriers by water 

United States and Alaska 

Samoa and the Virgin Isla

Intercoastal Shipping Act o

Regulatory Activity

T

The Intercoastal Shipping 

with the Commission and ke

showing all the rates fares 

transportation between ports 

The Commission accepts or 

the requirements of the statu

lations

During fiscal 1965 the C

offshore water carriers ship

ments of the domestic offsho

nating from their tariffs caus

only 13 tariff matters culmina

items under investigation and

17 from fiscal year 1964 re

and money to the Commissio

Otherwise in tariff activi

ined 727 freight and pass

and accepted the remainder

18
Special Perm

Under the provisions of sect

of 1933 no change may be ma

lication filing and posting of 

become effective not earlier tha

the Commission However u

Commission may in its discret

changes to become effective up

sion approved 148 application

and 4 were withdrawn by the ap

Domestic C

Agreements between carrier

subject to section 15 of the Sh

such agreements be filed for ap

Six carrier agreements were 

agreements were pending at th

examined to determine whethe

unfair as between carriers sh

that it would not operate to th

comrperce of the United State

of the Shipping Act whether i

derstanding of the parties an

est Three of the agreements 

formal action of the Commiss

mined not subject to section 1

ject of formal investigation an

Special Studies

A comprehensive study of 

purpose of determining the 

operations as related to their 

are 1 solutions to problem

trol of nonvessel operating 

petitive influence of contract 

3 necessity for complete o

certain types of carriers eg 

4 project rates
TERMIN

The Commission is respo

of marine terminal operato

ping Act 1916 This enta

under section 15 of the Sh

terminal practices under se

In carrying out this resp

1965

1 Issued revised propos

terminal operators to file ta

of terminal services

2 Instituted an investiga

T1768 city of Oakland C

Docket No 659should 

pursuant to section 15 of th

3 Instituted an investiga

practices of the Port of San 

section 16 First or section 

No 1217

4 Instituted an investiga

1 whether free time and 

York violate section 17 of th

eral Order 8 Part 1 has b

during the periods of abnor

the strike of longshoremen 

whether General Order 8 P

adequately in the future w

4 whether General Order 

scribe assessment of any pie

time strikes and 5 wheth
amended to delete the words wh

stantial portion thereof

5 Issued a further interpr

Shipping Act 1916 The pur

assist the public in determin

licenses assignments or other 

use of terminal property or f

subject to the act and wheth

section 15

6 Completed hearings in 

North Atlantic Ports and he

tion No 5 South Atlantic an

Charleston SC Savannah G

of developing facts to determi

storage practices at terminal

discriminate against truck tra

7 Examined 2855 termin

they were in conformity with 

1916 or with an approved c

minal may have been a party

8 Reviewed the minutes o

determine whether any action 

Shipping Act

Terminal Agreements

Terminal agreements are 

may be unjustly discriminato

pers exporters importers o

the detriment of the commerc

interest and that they do not 

acts

At the start of fiscal year 

ments pending review This 

influx of such agreements fo

moratorium legislation Pub

ditional terminal agreement

this total 133 were approve

1026 determined not to be su
FREIGHT 

The Commission license

forwarders promulgates 

approves or disapproves 

pursuant to the provisions 

Licensing

The law authorizes the 

dependent ocean freight fo

to function as such As a 

to conduct sufficient investig

a finding to be made

At the beginning of fiscal 

and there were 404 applica

79 new applications were 

applications were denied 

process

Of the remaining 144 p

completed on 36 29 are p

in various stages of staff pro

Agreements

Ocean freight forwarder

agreements or cooperative w

forwarder who controls the 

with a forwarder located at 

plete or process one or sev

Such agreements are filed 

section 15 of the Shipping 

22
At the beginning of the fisc

approval and an additional 7

were approved 13 rejected 

The number of new agreemen

tutes a decrease of about 135

the last fiscal year There a

agreements between ocean fre

the Commission

Rulemaking Proceedings

The Commission adopted A

fying the circumstances und

quired of applicants for lice

mission also adopted Amend

records to be maintained by 

General Order 4 was furth

ment 8 after an extensive 

ment provides that a person 

service as a nonvessel operat

be licensed as an independe

to export shipments dispatc

carrier assumed transportat

192740 0004
FINANCIAL 

AN

Transport Economics

As a result of the incre

analyses of traffic and trad

United States and in order t

in this area the Office of T

August 25 1964 Its effo

series of ratelevel studies 

presence and effect of dispar

ment of cargo in given trad

structures compels the outbo

part of the round voyage co

is feared that the export rate

exports of the United State

balanceofpayments position

Thus far analyses have b

of the following trade routes

No 5 US North At

see chart page 26

No 6 US North Atl

No 7 US North Atla

No 8 US North Atl

No 10 US North Atl

No 12 USAtlanFa

No 22 US GulfFar

No 29 USPacificFa

It is planned to continue these 

tial trade routes of the United 

In this activity the Commi

of the Government both on a 

24
of interagency committees a

departments and agencies 

nizations is the Interagency 

mittee set up by the Departm

with transportation regulator

representative of the Commis

in the proceedings of the Inte

Statistics which operates u

Budget for the improveme

Federal statistical services 

participation in the statistic

tions

In matters pertaining to t

mission collaborates closely 

Department of Agriculture 

the Office of Special Repre

other governmental organiza

on Government sponsored t

Agency for International De

portation Service

Financial Analysis

During the fiscal year 19

carriers in the domestic o

terms of General Orders 5 

General Order 11 were rece

effective July 17 1964 F

mission began receiving cu

the operations in these trades 

These reports reveal the as

operations of the carriers i

Also this fiscal year an a

the Commission saccountan

efficient use of the availab

examination of the carriers 

The authority of the Co

of carriers in the domestic 

such carrier The Commis
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26
the carrier to permit Comm

s

and records The carrier ap

which decided April 15 1965 

the opportunity to reconsider i

The data obtained by the C

tion of General Order 11 has 

of changes of rates filed by 

information concerning the as

tions of the carriers in the d

the review of changes in tariff 

in eliminating some suspensi

would have been necessary 

has also assisted in the ver

by carriers in support of cha

changes have been subjecte

not such rates were suspende
ENFORCEMEN

Informal Complaints

Following the establishme

in 1961 exporters importe

in serving the foreign ocean

have in increasing numbers 

in regard to a variety of sh

clude controversies related t

steamship lines and conferen

tions and other malpractices 

and rules

Since the Commission has a 

as possible with respect to the 

tion of common carriers by 

United States it must make d

and take such action as is wa

In most of these cases a form

found not to be necessary fo

fected after Commission inter

dence of violation or basis fo

or corrective action is taken 

instances the circumstances re

tigation by the Commission 

proceedings are necessary to 

applicability Another inves

the Commission nonadjudicat

In fiscal year 1965 the C

formal complaints and conc

respect to 390 cases Of this 

partment of Justice The type 

E
Complaints Alleging 

One hundred and fortysev

upon or considered by the Cos

11 cases rate adjustments b

Complaints were withdrawn 

mission found no basis for r

basis found for formal Com

48 other such cases was pendi

in formal docket proceedings

Freight 

Consideration was given t

disparity between the inboun

rate No basis was found in 

to the shipper Two cases 

end of the year

Cla

Sixtysix cases in which 

in the matter of settlement of 

or other reimbursement wer

ments were found to be appr

In 41 cases investigation sho

charges or other reimbursem

cases were pending further in

Complaints A

Thirtytwo complaint cas

tion or undue prejudice in 

the Shipping Act 1916 I

dence warranting referral o

partment The complaint in 

and inquiry failed to indica

or for formal action by the 

sideration of eight cases was 

ings Twelve others were p

Classific

Thirty complaints involv

riers were reviewed on an 
was no basis for obtaining 

others are pending final det

Cases Inv

The staff of the Commi

pected violations by carrie

section 18b Shipping A

these investigations were c

were referred to the Depart

evidence obtained in the o

violations and further action 

are presently under investiga

Other Compl

In addition to the foregoin

received Included among 

steamship passengers regard

and the like with respect to 

authority Also included i

plaints are those pertaining 

the agreementfiling requirem

booking arrangements shor

steamship agency matters re

of these cases were concluded 

action by the Commission 

or investigation at the end of th

Informal Comp

One hundred and fifty seve

claims for damages or overc

ments protests against rates 

tices and tariff filing violation

Twentyfive of these comp

tions of the statutes 102 we

parties 15 were referred to t

in process of staff review on Ju

Other Co

In addition to its action on 

from shippers and the public 

30
evidence of violations 1 re

and other Government agencie

staff in review of conference 

conference activities

In all 287 matters falling 

fiscal year 1965 In seven 

referred to the Department o

of the Act In one instance 

matter for formal hearing an

reduced the outbound rates 

quiries and rate and trade stud

in which no basis was found fo

Concluded in the foregoing 

the 247 possible violations re

of the House Committee on t

through 1961

Factfinding Proceedings

During the past year the Co

proceedings however hearin

tion numbers 5 6 and 8 T

rate structures FF6con

and Government agency test

this investigation conference 

next year Factfinding proc

tices at North and South Atl

hearings at Gulf ports will be 

report on Project Rates Fa

Commission during this year

Field Investigations

There were 893 investigat

Of these 763 involved ocea

remainder consisted of allege

shipping statutes or rules and 

ing the year 394 new case

were completed
The year saw the effect

freight forwarder license a

made concerning prior regis

Investigative activity resu

ing 31 individuals or concer

in the amount of 37788 

were also pending in the Fe

Justice for appropriate actio

nature

Formal Proceedings

The Commission on its ow

proceedings involving variou

complaint cases and 21 spe

The Commission sdecisionm

at a high level with 64 cases c

The Commission sregula

special emphasis on cases c

rates upon the export comme

ings in our offshore domestic 

15 of the Act of agreemen

common carriers by water 

in formal proceedings is indic

Investigations

Section 15

Sections 14 16 17

Section 18b5

Dual rate contracts

Freight forwarder

licensing

Rate proceedings

Rulemaking

Total 

32

Be

fisc

Total 

32
PROCEED

HEARING E

FEDERAL MAR

At the beginning of the fisc

before Hearing Examiners a

year 76 cases 7 cases were r

ing a total of 231 proceeding

ings and issued 65 decisio

arguments involving 30 proc

involving 82 formal procee

there were 42 proceedings pe

Final Decisions of the 

Docket No 732HKempner 

Docket No 733HKempner v 

Docket No 734 Galveston Cott

Inc et al Docket No 735Tex

ship Co Inc et al The Com

proceeding dismissing complain

tion between the parties

Docket No 881 General Inc

Commission denied petition for 

April 30 1963 thus affirming tha

Docket No 884 Unapprove

Okinawa Trade It was determ

approved unfiled agreements in 

Docket No 901 General I

Trade On rehearing on rema

of administrative and general 

made in its Report and Order of O

Docket No 921River Plat

Brasileiro Patrimonio Natio

Docket No 928 Agreement No 

National and Moore McCormac
ment No 8545 was in violation 

respects and thus disapproved 

deleted the Agreement will be ap

Docket No 966 Reduction 

Olson Co C R Nickerson 

under investigation were lawful a

Docket No 1078Japan Atla

Patronage Dual Rate Contra

Conference of Japan Exclusive P

ent conferences were permitted 

rate contracts in the form sp

Docket No 1079The Pers

clusive Patronage Dual Rate 

mitted to employ the exclusive 

specified in the Commission repo

Docket No 1088 Jordan I

Grancolombiana et al The C

ground that the rates which were 

to be unduly prejudicial unju

commerce of the United States

Docket No 1096The Northe

Lines Inc Complainant sshare 

9040 were determined to be unj

meaning of section 15 of the Act

Docket No 1103 Agreement 

Agreement The Commission a

tion 15 of the Act

Docket No 1104Pacific Seaf

Berth Operators et al The C

grounds that agreements are not 

where they involve foreign interp

are American financed and carrie

ments with the Commission dealin

Docket No 1105Sub 1 Ag

StatesPersian Gull Trade Ag

to section 15 of the Act subjec

Order No 7

Docket No 1127 Overseas 

Line Extra Charges Due to De

Strike It was determined that 

dered during strike period when 

on its bill of lading was not show

18bof the Act

Docket No 1128Agreement 

Long Beach California Agreeme

34
Oakland California It was dete

together with companion Agreem

to section 15 of the Act and are app

Docket No 1134 Investigatio

TradeIino Kaiun Kaisha Ltd a

termined that the practice of re

Duluth on inbound voyage did n

16 First even though responde

voyage It was further determin

ents were parties was the comple

subject

Docket No 1145 Reduction 

Coast Ports to Puerto Rico Doc

biles Atlantic Coast Ports to Pue

ents rates under investigation h

and a minimum just and reasonab

Docket No 1150 Hasman 

Misclassification of Goods in C

StatesPuerto Rico Trade It w

Baxt was in violation of section 

of a trailer van containing leathe

Valencia Baxt Express were in 

statement of cargo weight of the 

The record was insufficient to su

with respect to certain shipments o

Docket No 1155Imposition 

of the Philippines It was deter

ents were not in violation of the 

surcharges imposed by responde

newsprint at Searsport Maine w

shippers of newsprint at Searsp

charge was not imposed at nearby 

Docket No 1157 United Stat

istration v American Export Li

the initial decision of the Exa

ground that the rate in question 

as to be detrimental to the comm

natory or unduly prejudicial

Docket No 1158 nthe Matt

ranean Ports Conference The 

investigation on the ground th

of full shiploads of one commo

conditions was not in violation o

Docket No 1166In the Iltat

6200B US Atlantic and Gul
Commission approved pursuan

ments to the basic Agreement 

to Great Lakes and St Lawren

ments on ordinary conference 

section 15 proposed amendme

Gulf section of the conference 

and disapproved pursuant to 

for the entire trade area

Docket No 1168 Applicati

Applebaum The Commission 

of New York for freight forwa

in a firm primarily engaged in 

countries could not qualify as 

defined in Public Law 87254

Docket No 1172Peter Brat

Docket No 1173Peter Bratti 

et al The Commission adopt

reparations to complainant ari

resulting in assessment of imp

plainant

Docket No 1188Increased 

Area The Commission adopte

that rates charges and practice

pany River Lines were not un

Docket No 1192Applicatio

Cady The Commission adopte

the application of Wm V Cady 

a firm primarily engaged in sel

and as such did not qualify as 

defined in Public Law 87254

Docket No 1196 Applicatio

Shipping Corporation The Co

iner and denied the application 

ground that an incorporated fre

a shipper in the foreign commerc

freight forwarder as defined in P

Docket No 1201Applicatio

Shipping Co Rebecca Ruth Mo

of the Examiner and granted th

subject to the condition that app

by a shipping company

Docket No 1207 Seatrain Li

in Railroad Cars It was dete

unloading at its own cost rail ca

for unloading by consignees vio

Act 1916 and section 2 of the 

36
The Commission granted appl

mission sRules of Practice and 

tion or waiver of collection of 

Special Docket No 365 The C

6b in the following procedures 

Decisions of Hearing Ex

In proceedings not 

Docket No 971New Orleans 

tion and Southern Stevedoring 

respondent Bunge Corporation 

Commission with respect to the 

Destrehan La

Docket No 996Philippine M

corporated It was determined 

of copra was the responsibility 

ment against the vessel of a char

sonable practice relating to the r

of section 17 of the Act The r

charge to reflect only the reason

actually made available and whi

Docket No 1082 Thatcher G

Inc Puerto Rican Division I

500 per trailer load of glass b

JacksonvillePuerto Rico trade 

transshipment at Port Newark 

unjust or unreasonable It w

though higher than the rate of 

Port NewarkPuerto Rico trade 

sonable prejudice or disadvant

Puerto Rico is less than the dista

the carrier offers a direct servic

from Jacksonville

Docket No 1086 Stockton P

et al It was determined that th

tices in accordance therewith 

terminal ports of the San Franc

15 of the Shipping Act 1916 to 

of inland transportation to such 

Long Beach Calif but that s

they provide for equalization o

Francisco bay area ports whic

of said Act or of section 205 of 
as required It was further h

18bof the 1916 Act by soca

in Southern California and ship

Docket No 1114Iron and 

mined that respondents rates o

and Gulf ports and ports in Fr

North Atlantic and Gulf ports 

US Atlantic Gulf and Pacific 

cific coast ports and ports in 

Pacific ports to ports in the Re

be in violation of section 17 of 

of either section 15 or section 18 

Docket No 1159nthe Ma

of Agreement No 14 as Amen

Kong It was determined th

the member lines of the Trans 

providing for the exclusive ser

permission was not unjustly d

shippers exporters importers 

United States and their foreign 

detriment of the commerce of t

the public interest that it was 

and that it should be and it w

Shipping Act 1916

Docket No 1170Firestone 

Firestone Tire Rubber Com

determined that where conferenc

its dual rate contract by makin

vessels and the shipper contend

and denies liability for damage

tract and involving its interpreta

contract involved such disputes 

of the case do not justify an ord

referring the matter

Docket No 1171 Outbound 

Pressure Boilers Utility Type 

It was determined that alleged d

components thereof from United 

tions and alleged disparities in 

modities between United States 

tion 17 of the Shipping Act 1

high as to be detrimental to the 

18b5 of said Act respond

ments were not shown by reas

disapproval cancellation or mod

38
Docket No 1176The Govern

Ceylon and Burma Outward Frei

that surchares imposed by reaso

Pakistan were not unjustly discr

tion 15 or 17 of the Shipping Act 

source of any rate differential b

importers and the port allegedly 

with any allegedly preferred por

not so unreasonably high as to be 

States under section 18b whe

revenues resulted from the port co

by one respondent to 40 percent w

5 to the extent that it exceeded 

improvement in port congestion 

reduced 30 percent surcharge to 15 

Docket No 1187 Reduced Rat

States Atlantic Ports to Ports in 

Commission sstatutory authority 

4 of the Intercoastal Shipping 

Commission that a rate is unjust 

in the absence of such finding a r

the burden to prove the justness 

under section 3 of the Intercoast

failure to meet this burden and i

demonstrate that a suspended rat

found unjust and unreasonable th

Marine Act 1920 that a port or 

right to cargo originating in nat

but this right is not unqualified a

portation factors are substantially 

Docket No 1187Furthe

Tractors from United States Atla

determined that reduced rate of r

Miami Fla to San Juan Puerto 

low under the Shipping Act 191

Docket No 1211 Independent 

Aetna Forwarding Co Inc Revo

the application for license as inde

inasmuch as the forwarding comp

which did not belong to it and d

companies

Docket No 1216 Activities 

of Containerships Inc It was d

the North AtlanticPuerto Rico tr

were unlawful Unlawful opera

quired to file an appropriate tariff
Special Docket No 376Lyk

Refund Excess Freight Charge

section 6b application for pe

be granted

Special Docket No 379 Ja

It was determined that a carri

charges on shipment of orange 

prior to shipment carrier a

made timely effort to file rate r

amended tariff in its letter of 

filing was not completed until af

Special Docket No 380 A

Steamship Lines Inc It was 

waive the collection of undercha

to Republic of the Congo

Special Docket No 381Joh

fund Part of Freight Charges 

Concord from Philadelphia P

It was determined that the app

of freight money be denied

Special Docket No 382The 

mission to Waive Collection o

plication for permission to waiv

of used Volkswagens from St T

be denied

Special Docket No 383 A

384 Dremanex SAv Regent 

Co SAv Regent Line Speci

Regent Line Special Docket 

Docket No 388Transinter S

389NV Osto v Regent Lin

permission to waive collection 

commodities from Antwerp Be

Ga and CharlestonSCbe de

Special Docket No 3905 

Line Special Docket No 391

Line Special Docket No 392 

tion v AP MollerMaersk Lin

permission to grant refunds and 

Special Docket No 395 R

Company It was determined 

fund should be denied

Special Docket No 396 Se

Undercharges It was determ

permission to waive collection 

40
cargo in the domestic offshore tr

be granted

Special Docket No 397Barr 

It was determined that applicatio

refund of portion of freight money 

Fact Finding Investigation No 

the practices of carriers in grant

Docket No S121Applicati

Hawaiian Calls At the request 

served as review examiner on this 

Examiners also issued decision

928 1088 1103 1127 1128 1

1196 1201 1207 and Special D

under Final Decisions of the Com

Pending Proceedings

At the close of the fiscal yea

which 30 were initiated on the Cos

were instituted by formal compla

trade associations shippers ind
RULEMAKIlN

At the end of the fiscal ye

were in process

Docket No 875Filing of T

sion of proposed rules published 

Docket No 965Investigati

tices of Pacific Coast Terminal 

Demurrage and Service Charges

Docket No 983Rules Gov

Commerce of the United States

Docket No 1191Uniform 

Proposed rules published July 2

Docket No 1194Proposed 

Information by Parties to Sect

published April 28 1965

Docket No 655Time Lim

posed rules published March 27 

Docket No 6521Time fo

ments Proposed rules publishe

There were published during 

ment 6Licensing of Indepe

Order No 4 Amendment 7

warders Ocean Freight Brokers 

Order No 4 Amendment 8 

Ocean Freight Brokers and Oc

No 8 Part I1 Amendment 

General Order 13Filing of T

of the United States and Confe

14Shippers Requests and C

No 3Publication Posting an

to Tariff Circular No 3Canc

from Tariffs of Ports to which 

to Tariff Circular No 3Pu

Domestic Offshore Trade

42
ACTION IN 

During the fiscal year 196

cases before the various US 

these cases were disposed of 

pending as of June 30 1965

The Commission also filed 

seven petitions for writs for c

United States The Supreme 

granted certiorari in two case

of the fiscal year

Some of the more important 

Federal Maritime Commission 

F 2d 255 9th Circuit July 27 

of the Commission issued pursua

and Procedure directing respon

inspection and copying certain 

order to be invalid on the ground 

to promulgate any rule relating 

ments The Court stated that th

in details within the framework 

and hence is without authority in 

Congress did not intend federal 

upon statutes conferring general 

Carnation Company v Pacific 

ence and Federal Maritime Com

July 30 1964 in which the Cou

seded where the Shipping Act 1

is violative of both the antitrust 

Company began an antitrust tre

bound Conference and Far East 

implementation of secret agreem

Commission pursuant to section 

dismissed the complaint on the 
exclusive remedy and the Cou

the Supreme Court granted cert

380 US905

Far East Conference et al V 

States of America 337 F 2d 

the Court affirmed orders of 

the Shipping Act 1916 which 

reports regarding freight rates 

in the foreign commerce of the 

order of the Commission whic

requests and complaints On J

petitions for writs of certiora

379 US991

New York Foreign Freight F

Federal Maritime Commission 

2d Circuit Oct 14 1964 in 

regulating the freight forwardi

carriers The Court concluded 

to implement the policy and o

1961 Freight Forwarding Law 

the Supreme Court denied pet

Court of Appeals opinion 380 

Flota Mercante Grancolombi

342 F 2d 924 DCCircuit De

Commission sdecision awardin

reparations for damages incurre

biana sfailure to give Consolo 

ordered by the Court to vacate i

in view of the substantial evide

assess damages against Flota in 

Commission abused its discretion 

Act in imposing reparations on 

Court granted certiorari to revie

US933

Pacific Coast European Confe

and United States of America 9

upheld with minor exceptions th

dual rate contract to be used by st

commerce of the United States 

of rates hence dual rates i

merchants or shippers who agr

particular trade via the conferen

the uniform contracts were set a

been given the notice required by 

ject matter of several clauses in 

Court of Appeals affirmed the Coms

44
Alcoa Steamship Company In

United States of America DC C

remanded to the Commission an o

suant to section 21 of the Shippin

mestic offshore carriers both of w

corporate records and documents 

financial reports filed with it The 

invalid under section 21 but that 

carriers subject to its domestic off

audit would not discriminate again

Alaska Steamship Company In

and United States of America 344 

which the Court affirmed with m

directed to Alaska Steamship Co 

Lines The Commission order al

seasonal service of 10 percent w

rate base representing the assets 

Steam s operations The order 

regard to income tax depreciatio

the Commission sorder and to giv

reopen the Commission proceedin

Federal Maritime Commission 

GulfPanama Canal Zone Conf

NY

application

Apr 27

for

1965

an injunction

in which

res

th

on ocean shipments carried betwe

including the Caribbean The 

strike

measure

which

to offset

ended

the

in the

effects

spring

of p

quest for injunction the Court he

tion to maintain the status quo pe

the Commission had not made the 

relief requested

Swedish American Line v Fede

of America DC Circuit June 

order of the Commission which h

forbidding sale of passenger trans

appointed by conference lines 

requiring unanimous accord by a

can change the level of commissio

the Commission was directed to m

its disapproval or in the alterna

Federal Maritime Commission 

June 15 1965 in which the Dis

duces tecum as to two items in th
the remaining three items T

rate investigation under secti

quired the production of five c

relating to inbound rated man

invoices and canceled checks 

1 and 2 were relevant to an in

b 3 of the Shipping Act 1

power to compel production 

did not have the power of subp

18 b 5 of the Shipping Act 

The Commission also referre

tion 49 cases involving violatio

coastal Shipping Act 1933 an

of subpoenas duces tecum an

sistance in connection therewit

M
LEGISLATIVE 

The Commission was conce

two of which were enacted into 

was Public Law 8956 which 

Maritime Commissioners from 

that Commissioners whose ter

until reappointed or their suc

was Public Law 8971 which 

the Intercoastal Shipping Ac

Shipping Act 1916 Under t

of section 2 of the Intercoasta

filing of rates in the domestic 

is now not more than 1000 f

The third proposal was a bil

by water between the United 

and foreign countries to file ev

information HR 10327 

Fisheries in executive sessio

favorably to the House Septem

Further the Commission p

posal with Interstate Commerc

tics Board to amend section 

1958 to authorize common car

Aeronautics Board Federal M

Commerce Commission to en

regulation by a joint board a

referred to Committee on Inte

3 1965

The Commission has unde

propriate legislation next fisca
proposals for purposes of 

domestic offshore commer

the exercise by the Comm

c clarifying certain sec

improving and speeding 

Commission

48
ADMINI

Commissioners

Reorganization Plan No 7 

of office for the five Commiss

mission two of which neces

provision was amended by P

1965 providing that Commis

for terms of 5 years except t

mence July 1 1965 shall in

8956 also provides that upo

Commissioner shall continue 

been appointed and shall have 

ment insures the availability o

at

decisions

all times and adds continu

John Harllee Rear Admir

term of office expired June 3

term expiring June 30 1970 

by the President to continue 

Commission

James V Day of Maine w

June 30 1965 was reappoin

301969

George H Hearn of New Y

forthe term expiring June 30 

Other members of the Com

sissippi and John S Patterso

30 1967 and June 30 1966 

The Commission on July 2
Chairman succeeding Thom

appointment as Commission

Personnel

There were 251 employee

4 under the President sYo

crease of 20 over the June 30 

Staff Organization

The Office of Transport E

1964 to provide staff servi

freight rate structures and 

shipping practices

The Office of Internationa

on November 5 1964 Thi

former Office of Internation

Services for more efficient 

of program activity

Management Improveme

The Commission in fisc

obtain maximum efficiency 

gram of the Federal Maritim

on internal operating proce

rules and interpretative info

furtherance of the Commiss

other than adversary actions

Management studies of t

undertaken with significant i

Paperwork was reduced 

such means as 1 additiona

2 streamlining the review 

forwarder terminal lease a

volving major problems or 

section 15 agreements 4 

a
reports of Commission decisio

of legal opinions

A standardized filing system 

Maritime Commission was 

National Archives and Record

in fiscal year 1965 improved 

concurrent records disposition 

percent the files in use for nonr

Management actions of di

addition to rulemaking and leg

in this report

1 Procedural improvement

special services to the public 

of user charge fees and esta

handle in one central place the 

for materials on the activities 

Additionally mailing list 

including direct mailing from 

the Commission sprinted deci

2 Discussions with indus

Commission srule establishin

carriers in the domestic offsho

3 Elimination of triannua

forwarders

By substituting a program 

plaint basis the Commission w

for a freight forwarder compl

4 The establishment of a

seminating information for th

5 Completion of a feasi

rate data

By Public Law 87346 O

required to file with the Fed

and charges for transportati

ports and foreign ports and 

routes Responsibility is as

mission for rejection of such 

sions of the law and for su
lished rates upon the inte

United States

As a result of this legis

tariff rates on file with the 

changes or additions are 

per day The volume of 

ble through manual proce

by Public Law 87346

Based upon a feasibility 

sion and the General Ser

employ an electronic data 

tariff filings the source data 

tariff

sion

filing

responsibility

rules promulga

under 

form filing system adaptabl

With industry assistance 

veloped and tested and a

coding by September 1965 

utilization of commodity c

cies and private industry

The goals for this proje

and analysis of freight rates 

on maritime transportation 

bility of commodity data 

Administration and private 

niques which permit and en

work 5 simplify identific

ments such as export license 

of lading and ship manife

programs now being develo

ment activities such as freig

movements marketing and 

The lack of a standardize

combined needs of industry 

been the underlying deterre

processing to the monumenta

shipping

52
APP

Statement of Appropriation a

Ended J

APPROPRIATION

Public Law 88527 88th Con

1964 For necessary expens

Commission including serv

15 of the Act of August 2 1

for individuals not to excee

senger motor vehicles an

therefor as authorized by th

as amended 5USC2131 

Public Law 891689th Congr

Second Supplemental Appr

increased pay costs incurred 

1964 PL88426 

Appropriation avai

OBLIGATIONS AND UNOBLIGATED BAL

Net obligations for salaries an

ended June 30 19

Unobligated balance withdraw

STATEMENT OF RECEIPTS DEPOSITE

OF THE TREASURY FOR THE FIS

1965

Duplication of records and o

Fines and pena

Total general fund re

US