UNIT

MARITIM

TO 

FOR THE 

2

GOVERNA

W

axle by tha SnnarintenAant 

waawngton 
UNITED STATES M

OFFICE C

WAS

COM

WILLIAM VA

RAYMOND S 

J GEENvILL

JOSEPH K C

VACANCY

A J WILLIA

LETTER O

UNITED 

To the Congress

I have the honor to present 

Maritime Commission for the f

In the introduction to this r

state of the United States Mer

its prospects in the immediate 

certainty on the national and 

next few years which may affec

past has shown however the n

Marine for purposes of nationa

permitting our fleet to becom

period of intensive emergenc

range and public support unwa

an effective instrument of natio

11
I

Encouraging progress ha

and in the months since th

position of the United Sta

postwar conditions A sta

program designed to fill the 

fleet and to strengthen it as 

of privately owned ships in 

ment has withdrawn from 

of its chartering activities 

chartered to private compa

fleet in carrying emergency 

goods to Europe and Asia 

regular trades have been res

Inch of course remains 

quired to prevent the negle

Marine in times of peace w

Improvements in efficiency 

required to keep them ope

from maritimewise comp

shipping has failed to regain 

ment will call for effort and 

of Congress and the admin

ernment industry and the 

the advantage of the whole 

Shipbuilding The most 

situation of the United Stat

1947 annual report of the 

shipbuilding was at a dang

ship construction in prospect 

the Commission warned tha

passengertype vessels and 

efficiency of the commercial 

national defense

The United States was the 

a decline in ship constructio

third of all the merchant s

percent of the tonnage cons
2 REPORT OF THE UNITED 

proportion of the United Sta

and are of prewar design tho

postwarbuilt ships may soon 

ciency of their merchant ma

comparative strength of the 

marines and rates of new ship 

Fortunately the outlook fo

is considerably brighter To

yards has doubled in the past 

tons on order on September 1 

liners for which contracts wer

The Commission srecomm

were reinforced by conclusion

appointed by the President t

to national defense Throug

mittee pointed out in April 

capacity of United States mer

that would be required in cas

would be needed to supply oil

In accordance with these f

funds for an expanded ship co

available to the Maritime Com

of 178 000 in contract a

cluding 84000 in contra

year which was extended to 

authorization has now been fu

Certain policies established 

which had formed the basis o

shipbuilding programs in the 

as a guide to the new progr

be a stimulant to rather tha

The Commission was to cons

vessels were economically jus

operators

share was to

willingness

be limited

to

to

pur

p

sidies making up the differenc

shipbuilding Government p

to be limited to the cost of n

sion was to establish close lia

lishment in working out the 

defense requirements This 

zation of a Maritime Com

Committee of which Admira
REPORT OF THE UNITE

A preliminary survey indi

prospects of building 18 mode

cargo vessels for purchase by 

construction differential subs

be constructed by private ow

increased speed as a national 

vessels designed for coastwis

operator with Government m

passengertype vessels desire

for the North Atlantic Servic

structed in an American ship

In view of legislation pend

time a considerable reluctance 

building programs particula

assurance of at least a 50p

and there was some suggesti

and charter them to private 

felt that the program should 

policies previously mentione

emphasis on private constru

Government assistance and c

operators an even footing wit

the Nation of an American 

purposes

With few exceptions Ame

condition to undertake a r

than at any time in the rece

12 operators now holding su

more than 0 times what it 

shipowners have obligations 

to undertake new vessel con

Two companies have alr

Negotiations are being carr

sengership operation which 

the near future In August 

of a contract for constructio

Mediterranean service of Am

tion passengercargo vessels 

world service for which the 

construction subsidy in addi

Bids have also been reque

trailsAtlantic Service Of Un

Co of New Jersey was autho
4 REPORT OF THE UNITED 

tankers on which the Govern

commercial requirements as a 

bids have been received and ar

mission and the Department o

In cooperation with the Dep

has been working on designs fo

will be suitable not only for p

convertible for war use and a

emergency The Commission 

these prototype vessels during 

The Commission sfirst 10ye

pleted in July 1948 Instead 

completion in this period over 

tion of a refrigerated cargo ship 

point where no vessels were u

under construction differentia

with the placing of contracts 

vessels the Commission comm

is hoped will produce some 40 n

up to the recommendations of 

which were for 50 passenger sh

be a start on bringing the Merch

for purposes of defense Mor

feasible and are needed to imp

of the United States Merchant 

This start bas been made po

companies which arc putting 

Maritime Commission which is 

a means of assuring a strong sh

Merchant Marine for national 

and industry groups which hav

gram and the Congress which 

ernment participation The pr

ing legislation Insofar as the n

a firstrate Merchant Marine t

its expense but insofar as privat

of modern uptodate vessels it 

the cost This method of coo

ernment has proved its value in 

the new shipbuilding program c

ShippingThe number of U

operation has decreased in the 

further in the next few mont

Government ships at the expira
REPORT OF THE UNITE

at present scheduled for Mar

nearly to its prewar level of 

of June 30 1948 as compare

appendix C

On March 31 1947 there 

going vessels Of 1000 gross 

June 30 1948 there were 7

fact that privately owned v

period from about 700 to 

number of vessels chartered 

from nearly 1650 on March 

There was also a decreas

Statesflag ships This wa

competition for available ca

of coal from the United S

Economic Cooperation Adm

Several changes were ma

all designed to protect the int

and the financial interests 

changes were made in char

additional charter hire pay

order to prevent loss of ch

April 1948 companies own

foreign interests were not p

owned ships in addition t

charter

When the need for additi

aid cargoes sharply decreas

withdraw all chartered vess

of November 30 1948 and 

vessels chartered to the n

signed to encourage compa

to remain as longterm Uuil

vessels and to discourage 

by those having no substa

Merchant Marine

When these changes are 

of ships employed will be s

placed on a firmer foundat

shipments may be offset b

decreases in some types of c

nations under the ECA pr

way trade in which United 

Later extended to Jauuary 311949
REPORT OF THE UNITED 

provision for transport of 50 p

ships has helped to case the tra

for shipping to normal peacet

Resumption of payments of 

operating subsidy contracts o

to United States trade and d

services in competition with lo

tenance of such services is no 

prior to the war

Greater participation of Un

resulted in an increase in su

increase in applications for su

to the Government of opera

somewhat because of increase

to double prewar costs comb

costs upon which subsidy diffe

of the first 10year subsidy pe

law for recapture of subsidy p

averaging over 10 percent of 

will return all the money paid 

tial amount for a total recapt

of27000 paid to them a

subsidies paid to aid merchan

cent of all Government subsid

has obtained a very valuable 

erate cost

The situation of tanker ship

cargo vessels There is not a 

tankers Demand for petrole

mechanized civilization is ste

that by 1952 the United State

domestic oil consumption T

ply though greater than ever 

Nation sneeds in case of em

armed services

The acute shortage of petrol

the winter of 194743 emphas

June 1947 the Maritime Comm

from United States operators fo

fore 100 such vessels were avai

ators of other nations who d

increases in United States dem

transportation for oil product
REPORT OF THE UNITE

their requests for the warbu

were nearly 200 application

Some of the tankers under co

but not firmly committed w

States operators Almost al

tankers were sold and withd

reconditioning or repair As 

ing the winter were required 

trades for the emergency pe

140 of them to noncitizens a

from reserve fleets for use by 

By the summer of 1948 a

all types had been sold or we

operating or being readied fo

60 new tankers by private c

the warbuilt fleet should su

oil products in the near fut

quirements

The domestic shipping pic

year s For a time subseque

Commission withdrew from t

operating it appeared doub

vessels would continue ill the 

trades under private operat

established carriers resumed 

scale using in most cases wa

mission under terms which r

amounts calculated at an an

sales price of each vessel wi

made if the charter operati

The intercoastal general 

and by Jame 1948 approxim

operating in this trade as a y

vessels and dead weight toun

engaged in intercoastal dry

passengercargo vessels have 

the war

General cargo service betw

Gulf coast ports was maintain

by 3 prewar lines operating 12 

the Commission in contrast 

50 vessels in 1939 During 

cargo service between Nort
8 REPORT OR THE UNITED 

although this coast was served 

of 60 vessels prewar At that 

senger cargo vessels operating 

Gulf service No such opera

There still remains a subst

Atlantic seaboard and betwee

maiply of coal sulfur and ph

to about 45 vessels principall

dead weight capacity than t

vessels employed in this trade 

Pacific coastwise generalcar

fiscal 1948 with only one comm

of the vear The traditional 

ment to a number of vessels b

With prewar operations For 

60 drycargo vessels in Pacific 

in 1948

Trade between the United 

contiguous areas Alaska Haw

tion of approximately 70 dry

addition 7 combination passen

The noncoutiguous trades are 

give employment to approxim

vessels as in prewar years

Alaska shipping presented 

Under Public Law 12 Eightie

the Maritime Commission wa

available to Alaskan operator

authorized to assume hull an

Government vessels furnished 

ing in the Alaskan service F

eighteen voyages with twenty

northbound cargo was supplies 

Alaska

authority

While Congress

to charter

extended

vessels to

u

contracts were not renewed af

had failed to submit satisfact

and intent of the law It was 

were able to operate 21 ves

chartered under provisions of t

purchased from the Commiss
REPORT OF THE UNIT

The very substantial ch

domestic trades are apparen

showing vessels employed J

Trade

Totals 

Continental 

Atlantic and Atlantie Cu1L

Pacific constwisc

lnterconstal 

Noncontiguous 

Alaska

Puertoo Rico 

i 1ycargo heighters and combluation 

Throughout fiscal 1948 t

tion of domestic shipping alo

of warbuilt vessels for ope

at rates materially lower th

participation in important r

wise intercoastal and nonc

At the end of fiscal 1948 

from bright Less than hal

as in 1939 and no new ge

being built although some 

ber of warbuilt vessels for se

vessels were operating in t

trades than a year previou

vessels chartered from the C

coastwise shipping trades to 

rate relief to the water lines 

Commerce Commission de

land carriers were initiated 

Shipping on the Great Lak

350 vessels with a total s

dead weight tons compared 

dead weight more than half 

arc over 30 years old Thi

50 years Only 21 bulk fre

service since 1939 and only 
10 REPORT OF THE UATITE

the Lakes Now carriers are 

have been received from 13 G

40 old ore carriers against the 

The tradein allowances requ

by law and the Commission h

at the time the applications w

ators are believed to be in a p

with private capital

Resemefleets and ship sales 

withdrawn from active opera

reserve fleets established unde

The number in these fleets inc

1675 on June 30 1948 and 

that time Some of these sh

provide a sufficient number of 

rehabilitation cargoes if nece

selected by the armed service

Defense Reserve Fleet for 

Scrapping of those ships consi

useful service has been contin

Expiration of the ship sale

March 1 1949 To June 30 

return of1720 00 673 

operators The Commission s

to may encourage further b

intend to remain a permanen

sold to United States operato

fleet types of vessels genera

Foreign flag purchases were i

other types not desired by Un

The Commission spolicy in 

at various times and as estab

the Merchant Ship Sales Act 

of allies who had lost many o

purpose was fulfilled the Co

countries Nevertheless the

fall of 1947 for transfer of so

ships by sale or charter to re

that they might carry the car

save dollar payments While 

with the objectives of the Mar

posal that would have done i

Merchant Marine by deprivin
REPORT OF THE UNITE

subjecting it to greatly increa

at nominal cost from the Un

sion therefore protested ag

States security Congress a

foreign countries after Marc

Merchant Ship Sales Act and 

of United States vessels to 

that at least 50 percent of 

American ships

Reorganization Withset

from dissolution of the Wa

Programs the Maritime C

reorganization designed to i

August 1948 the Commission 

under his jurisdiction seven o

mission retained direction of 

and determination of policy 

this way it was believed tha

functions could be obtained w

of the Commissioners appoint

Following is the detailed re

mission during the fiscal year 

SHIPP

Changing conditions in wo

borne services of the United 

rectly affected the shipping 

As far as worldwide operat

influenced among other fac

tries the decline in the bulk 

bilitation purposes leading 

worldwide shortage of petr

strike the passage of the in

sistance Act of 1948 and the 

competing in United States 

Charters

The Commission continue

ment owned vessels which h

Administration early in 194

demand for United States fla

at a high level and on Judy 

of various types which had 

various charterers howev

reduction in coal grain and 

States and to the increased 

operators the number of ve

this situation the Commiss

fleet charter agreements

On August 15 1947 notic

boat charterers of Maritime 

1 1947 subject to contin

conditions

1 The rate of basic or ad

2 The time limit of the c

about 6 months but no vo

29 1948 subject to termin

after 60 days from Septembe

delivered to the Commission 
14 REPORT OF THE UNITED 

3 Payment of additional c

rately for those voyages which 

for those which began unde

agreement

This action was designed t

operations after August 31 

against additional charfcr hi

profits for the prior period 

proximately 145 vessels were 

of the charterers

After the 60day moratoriu

right to terminate the charter 

came effective As overseas 

tinued to decrease and add

United States trade chartere

tinued to turn back their vess

660 vessels remained under c

overseas trade 57 in coastwise 

Alaskan service and 10 were 

under the Philippine Rehabilit

Inasmuch as operators of ch

were confronted with a gene

structure and under Public L

offset losses in the domestic t

ations the Commission in 

services authorized the cha

operators on the following term

L Basic charter hire was to 

per annum of the statutory s

higher of which however on

ditionally The balance of Gfi 

before any participation in suc

2 Additional charter hire w

section 709 of the Merchant M

3 The period of the charte

31 1947 subject to terminati

Appendix D indicates the nu

mission during the fiscal year

The following table shows c

the year for basic and additio

charter agreements
REPORT OF THE UNITED 

1 Includes receipts during year adocting pri

I Charterhire billings are sub ect to adjustm

Included are certain unhipt dated accoun

year 1949

1 Includes Lake charters

Trafac activities

As a result of decreasing bu

tation purposes the trend of 

downward during the fiscal 

the coastwise and intercoastal 

rates acting as a ceiling on w

continued to grant special red

chartered for these trades

A special contract with the 

12 Eightieth Congress provid

chartered by the Commission 

Transportation Co Northlan

Steamship Co for operations 

The act also provided for the 

and machinery insurance on a

by the above companies On 

Law 866 authorizing the C

benefits until March 1 1949 

June 30 1948 however since 

the operators for carrying out 

In order to provide transp

placed persons and others 

Commission continued to op

812036 492

Interim agreements

Cash payments 

Charter hire billings 

Ship sales agreements

Cash payments 

Charter hire billed 

Laud Leathers agteomont

Cash payments 

Charter hire billed 

LenCshpa ire haes

Charter hire billed holed 

Scajap vessels

Cash paymonts 

Charter hire billed 

Mismilarimus

Cash payments 

Charter him billed 

Total Cash PnYments 

Charter line billed 

1 Includes receipts during year adocting pri

I Charterhire billings are sub ect to adjustm

Included are certain unhipt dated accoun

year 1949

1 Includes Lake charters

Trafac activities

As a result of decreasing bu

tation purposes the trend of 

downward during the fiscal 

the coastwise and intercoastal 

rates acting as a ceiling on w

continued to grant special red

chartered for these trades

A special contract with the 

12 Eightieth Congress provid

chartered by the Commission 

Transportation Co Northlan

Steamship Co for operations 

The act also provided for the 

and machinery insurance on a

by the above companies On 

Law 866 authorizing the C

benefits until March 1 1949 

June 30 1948 however since 

the operators for carrying out 

In order to provide transp

placed persons and others 

Commission continued to op

812036 492
16 REPORT OF THE UNITE

Atlantic routes under Gene

converted transporttype ve

senger trade When the Con

time Commission for major 

international safety requirem

awarded for such work on a to

approximated 2800 0 O

these vessels in service of w

York and United KingdomN

vessels in the North Atlanti

As a result of vessel sales 

bareb9atchartered to privat

Commission and vessels retu

from Lend Lease there were 

required towing stripping 

their withdrawal from or en

Working in close cooperation 

mission also bandied all deta

the seven tankers and one dry

to the United States Govern

ports and arranged for sto

crewing etc so as to enable 

as possible on commercial vo

General agency agreements

Oil June 30 1948 there w

agreements and 4 berth agenc

to February 28 1949 Of th

of 11 Iaritime Commissionown

mately 40 were for the purpos

layup while the remainder w

service agreements at the en

in operation 9 passenger vess

Tankers

On July 1 1947 the Comm

agree ments approximately 2

single operator of this type of 

for petroloum and its product

tation facilities the Commiss

with the exception of a few 

of the fiscal year only a few 

mission operation and these 

purchasers upon completion o

mission is now out of the tan
REPORT OF THE UNITED 

Charters to aliens

During the acute tanker sh

Maritime Commission in ord

maximum number of United 

trade modified its General Ord

the Commission of the charter 

aliens for voyages between fo

ports and foreign ports excep

products from ports in the W

United States its Territories o

From July 1 1947 to June 3

voyage charters of vessels to 

aliens The great majority 

Voyage charters of tankers w

voyage be completed by Septe

limitation was to give the Com

petroleum situation particula

requirements before the winter s

which were approved subseque

cellation or suspension by the 

gency requiring the services of 

domestic economy

Foreign transfers

Appendix L lists approvals 

for transfer of United States 

registry The largest comber 

owned vessels sold pursuant to 

and the 1936 Merchant Marin

approvals granted by the Marit

the number of vessels actually 

chant Marine In some insta

summated for one reason or an

bad been obtained

Of the 224 privately owned 

gross tons approved for transfe

the greater portion were small 

principally shrimpers opera

transferred to Mexican owne

Mexican waters although the 

to the United States for its c

transferred have since been rec
18 REPORT OF THE UNITED 

Foreign stock piles

Commissionowned stock p

ment are located at Southam

P L and Yokohama Japa

material is approximately50

tained to provide replacemen

required by vessels operatin

Commissionowned vessels un

long delays with attendant 

receipts by the Government 

had to be manufactured and 

At the conclusion of the w

approximately 8000 of 

ment and spare parts Thro

to the Office of Foreign Liqu

been reduced to their prese

items of a critical nature suc

which would not be readily o

VessePeasualty investigation

A project of considerable 

year was an analysis and inv

missionowned or controlled v

of this study is to make reco

vessels determined to be men

those which are found to have 

Surrender of marine documents

During the fiscal year the C

visions of the Merchant Ma

marine documents of 427 Un

such as change of name hom

Forwarding

Under Section 217 of the M

Public Law 498 the Mar

coordination of forwarding an

and import foreign commerce 

the law was reactivated in co

Cooperation Administration 

issued a Notice of Procedur

warding of Foreign Relief Ca

would be prepared by the Co

ernment departments from 

handle export relief shipmen
REPORT OF THE UNITE

assembled on 384 American 

to various Government agenc

Insurance

All marine and war risk in

tracts including mortgages 

version vessel construction 

ential subsidies was processed 

the fiscal year The Commis

the American market as mu

gagors as was practicable ta

many instances insurance co

at a considerable saving in co

The following table which 

and approximate amounts of 

and an estimate of the prop

American and foreign marke

year

Typo

Jiarhte hull

Ianne protection and indenniu

War risk hull

war risk protection and indemnity

i The Commission requires rvar risk insuran

ment due to continuing danger from floating 

Consideration was given to 

terers for permission to collec

bursement for vessel loss and 

terms of the contracts were in

The Commission supplied 

reinsurance on vessels opera

agreement with the America

Under the terms of this agree

and the operators paid 175 

administrative and office expe

this insurance will cost the C

In accordance with the te

ments which had been in forc

were made with the four Ame

writers to continue to provide 

1948 in connection with all 

Commission Inasmuch as th

was impracticable to extend 
20 REPORT OF THE UNIT

1948 and arrangements wer

of policies to protect Commis

Supervision of the WART

agreements was continued d

ment was in force for appro

ment for approximately 5l 

ments the excess of premium

profit is to be recaptured 

1948 8500 0had been re

11500 0 under the PA

not be made for approximat

Maintenance and repair

Repairs were made on ap

Maritime Commission into 

Ship Sales Act charter durin

were conducted on about 7

to the Commission upon ter

Approximately 230 vesse

which provided for delivery 

This involved in addition to 

of the vessel in drydock and 

requirements of the Americ

States Coast Guard remov

changes and alterations to 

and work necessary to resto

sion standard design Th

about16893 745

Approximately 125 surve

the redelivery of privately o

ment during the war were h

mission conducted 279 subs

subsidy

1263 repair

agreements

inspections

It

on

pa

held upon termination of th

vessels It also conducted 4

or chartered vessels

In October 1947 followin

the Commission authorizer 

from layup of which 24 we

tion by the Navy with the C

for the cost of the repairs w

1948 all of these vessels we

operation with the exceptio
REPORT OF THE UNITED 

set the former requiring consid

which suffered casualty was 

During the fiscal year repa

carrying vessels of the troop 

the Maritime Commission u

1

total cost of these repairs app

593 88represents expendit

is the total cost of contracts 

ments of the United States C

these vessels for the improved 

800 carried previously In ad

were authorized during the yea

tion at an approximate cost o

Vessel records

Current data were maintain

mission sshipping operations 

about primarily by the sharp 

petroleum products and its 

situation the passage of the in

Act of 1948 the numerous req

Congress and congressional c

more than 25 major special re

to numerous continuing report

In addition a current recor

position of every vessel bare

private operators as well as d

position of vessels owned or co

Information on past and cur

States control was frequently 

agencies

Inventories

On July 1 1947 a backlog o

stores and equipment was car

included 6284 in seven field of

in 1947 annual report and an 

During the fiscal year an a

vessels were taken in the field 

to Washington On June 30 

unprocessed inventories in the 

office Review of a total of 6

Washington Office of which 

amounting to 12898 081 46

the amount of2938 487 06 

REPORT OF THE UNITED 

reconversion for commercial u

provided by the Army to pa

changes made by the Army d

At the Philadelphia terminal 

built in concrete in order to 

cranes

During the fiscal year the W

custody and possession of th

Yard at Chester Pa which w

yard to be declared surplus 

and restoration of the Conso

Calif and a contract amount

bidder The cost of this wo

estimated This shipyard al

ties at the Pusey Jones yar

the jurisdiction of the Mari

Administration for dispositio

entirely on land owned or lea

Government Negotiations a

the Pusey Jones yard and f

year 1949

The maintenance and secu

fiscal year at the four warb

Wilmington N C Richmond 

Wash which the Commission 

reserve status All four shipy

control and jurisdiction and ar

and security forces

During the same period pa

to commercial interests for the 

a critical steel shortage

Acquisition of real property 

fleet sites

Seamen

The Maritime Commission 

lems affecting merchant seam

ability for manning ships an

It participates in administerin

tions and medals fortMereban

cates of substantially continuo

return and disposal of the rem

the United States
24 REPORT or THE UNIT

REGUL

During the fiscal year lin

United States made further 

losses and new companies e

the increased schedules of t

competition between opera

competition increased the ac

in a much greater volume 

Commission

Freight rates United States 

During the year 566 tarif

portation with the Territorie

4 were rejected for failure to 

the law and 47 were amen

Thirtyfive specialpermissio

statutory 30 days notice wer

and 5 were passed to files 

subsequent to the receipt the

The Alaskan trade in partic

The Commission has been fac

in this trade first to obtain 

services The Commission h

rate structure for this trade w

service without working und

Additional carriers have sho

barge line common carrier ha

Rates were increased in m

to increased costs of operatio

of protests and demands for 

some instances satisfactory a

to a formal hearing The 

acquaint interested parties w

prior to the actual filing of 

procedure will tend to preve

relationship between carriers 

A new Tariff Circular wa

date the Commission srules 

Conference and other agreemen

During the fiscal year the 

modifications and 31 canc

proved At the end of the fis

and 9 requests for cancellat
REPORT OF THE UNITED 

pending Commission action 

membership recorded and 20

were received during the year

The following developments 

1 Outward conferences se

were consolidated into one c

inequalities between freight ra

2 Steamship lines in the E

agreements designed to facilita

nating at inland points in Euro

arrangements parity of throu

originating in Switzerland for 

via a Mediterranean port or a 

3 The growing tendency 

adopt various discriminatory 

marines traffic to the detrimen

has been called to the attentio

4 The Commission has ma

action the adoption of rules 

goods moving in foreign trade 

and loss by pilferage This sh

exporters and their customers 

possible source of discriminatio

5 The Commission sdecisi

of the conference contract rat

tract provisions which were i

forms of conferences using this 

of this decision At the same 

period of notice for rate chang

end that contract shippers will 

of rate increases

6 A growing number of for

to form joint services thereby 

better services than they could 

7 Conferences have once m

competition with respect to c

adopted various means to mee

sary to call to the attention of s

discriminatory effects of the me

small shipper who is unable to 

bringing of such dangers to the 

sufficient to bring about a volu

or a revision to remove the disc
26 REPORT OF THE UNITE

Foreign freight rates

Rate filings by carriers eng

nals slowed a substantial in

previous year

An upward traad in foreig

1948 Conferences generally 

mately 15 percent which was 

increase made in the price of 

involved Substantial advan

before any increase became e

covered trades where excessiv

to avoid rate increases as suc

to offset the additional costs 

was not only to compensate t

but also to focus attention o

capable of being remedied 

moved or reduced but in seve

above wore simultaneously an

Despite these general increa

were watching competition 

downward Tate adjustments w

Investigations

The number of investigatio

in the receipt of formal compl

as against 8 the preceding ye

proceeded with investigation

murrage charges payment o

in not placing their freight ra

Terminals

Both the Commission and 

have made efforts to secure u

terminal operators in differen

Terminal operators have fo

with the result that a total o

compared with 1852 the pre

as a result of suggestions fr

sistcncies duplication and a

The dockets of all public h

all notices orders reports a
REPORT OF THE UNITED 

HEARINGS BEF

At the beginning of the fisc

tions were pending on the re

docket Twentyfive now com

subsidy cases were filed or in

three applications were filed o

subject carriers to pay repar

and one is pending Fifteen 

26 complaints andor investiga

The trial examiners conducte

Ten final decisions were issue

sion Rules of Procedure were 

Procedure Act Work also co

Commission sdecisions

1inal reports

A r6sume of the 10 final re

the year follows

Docket No 648 Pacific C

U S M C 11 Increase of 

5000 found detrimental to th

active penalty provisions of re

to be unlawful contract rate 

imous voting rule found not u

Docket No 652Rates Betw

In the first proposed report t

of Lomen Commercial Co b

Alaska were lighterage and t

diction of the Commission 

the Commission and the ma

his recommendations on the m

In its second report supp

Lomen srates fares and cha

violation of section 18 of the S

file with the Commission sch

tion of section 2 of the Interc

that the failure of Lomen to 

tariff violated section 2 of t

amended that Kotzebue Soun

by a special contract violate

and section 2 of the Intereoas
28 REPORT OF THE UNIT

that Kotzebue also violated 

the rates charged pursuant 

Docket No 655 Termi

Definition of the terms ser

unloading contained in Se

unjust and unreasonable re

Shipping Act 1916 respon

in the definition and to su

results of their operations ov

they publish rates or charge

Docket No 661Alaska 

charges regulations and pr

Transportation Co and N

shown to be unlawful reco

evidence reflecting responde

June 1 1948

Dockets Nos 669 and 6

et al Docket No 671Ili

Lanolin found to be misclas

the Shipping Act 1916 fou

In Application for Financ

U S North Atlantic Ports A

Route No 1117 S South 

Scandinavian and Baltic Por

description of Trade Route N

in the order 2 that Trade 

defined in the manner provid

of South Atlantic Line Inc 

Trade Route No 11 be ap

Arnold Bernstein Steamship 

and United States Lines C

Trade Routes Nos 7 and 8 

In Application of America

subsidized Vessels in Service 

sion authorized the operatio

subject to conditions set for

In Application of Lykes B

gency Intercoastal Operation 

operates in foreign trade p

of coconut oil and tallow from 

Recommended decisions of tria

Docket No 621Port of N

Persons carrying on the busi


REPORT OF THE UNITED 

Docket No 678 Increase

Nome Alaska The Territor

Commercial Co on tobacco 

anchorage and shore at Nom

the tariff on these items whic

until October 5 1948 pendin

of the navigation season

Docket No 679 Northwes

American Mail Line Ltd Th

tion consisting of terminal op

and Washington allege respos

in violation of sections 16 17 

sections 2 and 3 of the Interc

Docket No 680I1imala 

tion Company Ltd of Greec

rates on lanolin and cocculus 

the Commission sdecision in 

violation of sections 16 and 

respondents conference agre

and disapproval of the confer

Docket No 681Himala I

Inc et al Complainant requ

sections 16 and 17 of Shippi

drums DDT from New Yo

questions legality of contract 

respondents conference agre

Application of Pacific Arge

Differential Subsidy This p

Pacific Argentine Brazil Lin

subsidy on Trade Route No 2

ports and east coast of South 

Application of Shepard Steam

Subsidy This is an applica

operating differential subsidy 

between United States Atlan

South America

Minimum Wage Minimum 

Conditions on Subsidized Vess

to section 301 a of the Merc

and wage conditions on subsid

Thirteen other pending pro

this report or in the annual re

812036493
32 REPORT OF THE UNITE

SHIP CONSTRU

New construction

At the beginning of the fisc

tion for the Maritime Com

at the yard of Bethlehem Sp

were at the Bethlehem Alam

pleted by the end of the fis

R1S13111 scheduled for de

No contracts for new con

year Appendices E throug

program

Conversion and reconversion

At the beginning of the fis

were sold to American citize

to buyers upon completion o

In compliance with Public 

procedure at the beginning o

American citizens Instead o

status to merchant vessels 

arranged for the buyers to re

for the cost by making allow

ships Under this provision 

and survey vessels and prepa

obtained bids and recommen

Subsidized betterment spec

vessels

The restoration of the S S 

emergency accommodations 

sons was completed and the 

The three good neighbor 

under conversion at the end 

vessels restored to service und

South American run

A contract was awarded fo

S S General W P Richardso

class quality Progress on 

is expected that the work wil

service during the fiscal year 

Construction differential p

granted on 11 vessels now und

Contracts were awarded la

four C3 cargo ships which se

for the Navy into combinatio
REPORT OF THE UNITED 

YorkMediterranean service 

and material difficulties have 

delivery is now expected in th

Claims for additional expen

settled for 44 reconversion co

contracts on vessels sold unde

Building proposals

The five vessels for roun

President Lines for which c

fiscal 1947 were readvertised 

Because of lack of agreement 

sion awarded the contracts on

Bids were also taken on two 

New York Mediterranean tra

contracts were awarded early 

Application was received f

two passenger trailer ships f

San Francisco Technical as

reviewed

Late in fiscal 1947 a propo

Lines for aid in the constructio

liner A vessel of such size an

consuming technical investiga

gation was continuing at the 

vessel was prepared by the d

and submitted for the Comms

Technical developments

Further developments in co

but delivery is still delayed 

yet been made

A pilot construction of an i

reduce costs of cargo handlin

been installed in the President 

has proved very satisfactory 

being incorporated in other v

reconversion Other special t

acceptance

Budget restrictions have ma

on breaking of ships material

and fuel economies of proposed 

to maintain files of technical d
34 REPORT OF THE UNIT

Inspection and performance s

During the fiscal year ins

on 6 new vessels and 53 rec

pletely scrapped or disman

mendations made concernin

OR 99 vessels including new c

and condition survey contr

reconversion were surveyed

Reductions in personnel a

inspector per vessel on exte

making an adequate check o

Acceptance trials were he

version acceptance surveys 

versions of chartered vessels 

cargo vessels and tankers sol

Final guarantee surveys we

and on 6 military reconve

versions are settled by co

survey Twentyseven inve

were continued or complete

of the performance of the S 

cruise to the Orient Diesel v

blower performance for norm

etc on the S S Delsud G

newly constructed vessels 5 

ditioned vessels Final settle

tors for their responsibility 

contracts Financial settlem

structed vessels 5 military re

representing 50000 recover

Material inspection

Material inspection of Com

contractors purchases to M

tinued to be spotty due to a s

conducted at the National 

Observatory totaled 318

Shipyard facilities

Current records were maint

States showing available ca

merchant vessels Research 

made for the armed services 
REPORT OF THE UNITED 

CONTRAC

Recapture of excessive pro

2502800 were effected dur

of war profits realized by c

predominance

3

of business wi

245 000 was attributable 

former War Shipping Adm

Included in these figures were 

of executed contracts or unil

made in a prior period

Renegotiation was conclude

to 361 cases of which 166 

approximately1296 000 

profits The remainder of th

realized no excessive profits o

the law Of the cases invo

renegotiable sales of approx

to operations taken over from 

tion Price Adjustment Board

Recapture of excessive pro

464 841 95 have been effect

the 11Iaritime Commission P

War Shipping Administration 

GOVE

Construction di subsid

There was available for the 

propriation authority in the s

was earmarked for bettermen

new construction No contra

during the 2 years from the 50

cussions with members of the s

a reluctance on their part to e

struction and purchase of ship

tho Congress to increase the c

percent and other benefits 

the close of the fiscal year 1948 

American President Lines Lt

senger and five combination pa

would more than absorb the 

Commission srevolving fund 

of the vessels would have to be 
36 REPORT OF THE UNITED 

During the 1947 fiscal year 

5

from the betterment fund to 

584 815 was tentatively a

betterments on approximatel

tors See appendices G and 

receive betterment grants in t

differential subsidy contracts 

During the fiscal year a co

the S S General Richardso

military to a commercial ves

of approximately5000 

operated under charter to the 

ranean service until new vesse

A construction subsidy ap

Line Inc for betterments to 

this company filed a purchase 

The steamships Mariposa 

1932 by the Oceanic Steams

mail contract were taken ov

war and converted into tran

to the owner after the war wi

reconverted back to commer

sume operations in the comps

States Pacific coast ports and 

however clue to unexpected 

vessels met with financial diff

of vessels some months ago 

Australian trade so the own

sound to return them to the A

to complete their reconvers

both commercially and for na

sion has considered several 

done to place the vessels bac

time malting them available 

gency should arise Howeve

developed under which the ve

Construction without subsidy

No contracts were awarded 

owners without subsidy durin

was received from the Paeifie 

of two combination passenge

tic service between Los Ange

had not been acted on as of 

tions had not been put in fina
REPORT OF THE UNITED 

Operating disubsidy a

Subsidized operations on re

1946 and subject to certain 

Commission has agreed to res

1947 to 10 of the subsidized 

the other 2 operators Appe

on which operating differenti

for voyages made previous to 

The following subsidy paym

contracts prior to January 1 

Temporary agreements 

Longrange agreements 

Total 

i This amount has been repaid to the Gove

f The amounts applicable to the various o

reserve funds but payments to the Governm

don of the first recapture period with respec

range agreements are subject to final audit

The following revised subs

for the fiscal years 1947 194

committee of the Committee 

atives in connection with the 

1947 

1948 

1949 

Total 

Under a plan worked out w

annual recapture accrual will 

and carried on the operators b

subject to adjustment each ye

based on the revised accumula

Balances in the capital and 

Finance and in appendix J 

established by individual ope

Commission and the deposi

utilized exclusively by lionsub1

the aggregate of balances in 

was30453 647 76

Federal ship mortgage insuranc

Since the war there has be

ship mortgage insurance part

of vessel types unavailable fo
38 REPORT OF THE UNITE

warbuilt vessels and with r

use of certain types original

service

During the year an applic

partially completed naval c

originally filed in the 1946 fi

hearing held Amendments 

prevented final action during 

of the applicant action has 

involving reconversion of two 

and New York One now a

vessel but this application w

There has been some indica

types of domestic craft will b

Receipts to the Federal sh

to one 50 filing fee during t

the fund at the end of the 

indicated in appendix O

Applications for new operating 

Public hearings were held 

applications of Arnold Berns

ship Corp and United State

essential foreign Trade Route

from South Atlantic Steamsh

tion on Trade Route No 11 

mission heard oral arguments 

of the examiners on the above 

issued an order which prov

Bernstein Line Black Diamo

Linos Co be denied and that 

ship Line be approved sub

provisions of the 1936 act as 

tions as aro imposcel by the C

taken however on the applic

as of the end of the fiscal ye

mation requested from the co

had not been supplied

Some time after the issuan

18 1948 Arnold Bernstein Li

subsidy for the operation of t

Route No 8 United States 

dam the application being 
REPORT OF THE UNITE

Commission on a vessel purch

tion filed simultaneously B

operating subsidy was for th

Trade Route No S As ind

operation of P2 vessels whic

passengercargo vessels A p

held early in the 1949 fiscal y

The Gulf and South Americ

a new company formed by G

ship Co Inc each company 

application on April 23 1947 

with the operation of vessels o

States Gulf ports and west co

of this application for conside

made as of the close of the fis

the status of foreignflag com

The Pacific Argentine Braz

April 1 1948 an application 

operation on trade route No 

United States and ports on th

hearings were held in San Fra

report

and in 11ashington

was issued after

on June

the an

23 

An application was also fil

April 19 1948 for an operatin

Route No 1 between United 

east coast of South America 

hearing on this application w

Pursuant to an application 

quirements of its operating

Lines Ltd was authorized b

operate for 1 year without s

Trade Route No 17 between 

fornia Manila Hong Bong 

Soerabaia

Tradeins

During May 1948 13 compa

applications to trade in from 3

purchase price of 20 to 23 no

struction Due to the high tra

panies which the Commission 

further to the fact that the Cos
40 REPORT OF THE UNITE

not adequate to allocate fun

time the applications were fi

this type appeared somewhat 

final action not having been 

PURCH

Large vessel sales

During the fiscal year the C

purchase of a not total of 40

Act of 1946 as amended 

operation and 159 for foreig

value of approximately 50

vessels 673 for Americanfla

operation with an approxima

by the Commission since th

end of the fiscal year the Com

available subject to chang

Navy for sale under the te

1946 as amended

During the year title to a n

purchasers 298 for United S

At the end of the fiscal year t

applications from United Sta

sels It is anticipated that o

will receive approval since a 

are in short supply or no lon

Appendix K indicates in de

the Merchant Ship Sales Act 

The sale of vessels to fore

Sales Act of 1946 as amende

after February 29 1948 A

transfer to alien ownership 

tailed reports on activities 

Ship Sales Act are submitted 

Under the authority of 

amended the Shipping Act o

1944 a total of 705 vessels 

operation and 32 for nonself 

and 551 for scrapping A su

appendix M In addition the 

mental agencies a total of 3 

total of 7 vessels The mon

25626 018 99
REPORT OF THE UNITED 

This brings to a total of 10

the authority of the Mercha

the Shipping Act of 1920 an

227 vessels were sold for oper

non self propelled operation 

monetary return of these sales 

tion the Commission liar rec

253 442 for forfeitures and 2

governmental agencies and th

reimbursement 17 vessels to oth

abandonment of 9 vessels

Small vessel sales

During the fiscal year 2737 

valued at 46987 150by the 

to the Commission were dispo

At the end of the year the 

disposed of totaled 92 with a 

The following types of vess

vessels ferries tugs barges 

including tank barges landi

dredges derrick barges catam

Purchasing

During the fiscal year m

procured for the Commission s

owned shipyard facilities ma

owned vessels vessels larder 

schools and other Commissio

Vessels sold or chartered by 

transferred to the Navy were 

rials and equipment withdrawn 

Througli its homee office in 

5

the Commission placed 15699 

318 63 processed 20792 r

on Commission warehouses an

1

Approximately 5000 tran

000 were processed 

Government bills of lading w

covered from 473 claims agains

Surplus properly

During the year surplus ma

cost value of 13300 0 was 

tion for disposal Total sales 
42 REPORT OF THE UNITE

amounted to 8900 0repor

or a return of 20 percent

The Commission by actio

interest of preparedness all 

which would be roquired for 

outfitting or conversion of 

be retained and that aII usa

War Assets Administration sh

Warehousing

During the fiscal year five w

of106 092 Reported co

the beginning of the year amo

the reported cost of receipts a

and 21800 0 respectively 

hand at the end of the year

RES

Status of the fleets

On July 1 1947 there were 

ing 217 average vessels adjus

During the 1948 fiscal year 

redelivered from charter an

total of 1675 vessels in the f

540 vessels removed from the 

removed during the 1947 fis

marily to the reduction in s

of sales foreign on 14arob 1 

chartering of Government ow

Most of the 1011 vessels 

were returned from charter 

increase in forcisn coupotitio

racket especially in the bu

feared that deliieries to the f

there would be insufficient ve

the spring of 1948 In order 

vessels were placed in the fleet

for immediate return to ser

total of approximately 90 ves

three coasts

In appendix N there is sho

fleets by months during the f

During the 1948 fiscal yea

follows James River Va W

mont Tex Suisun Bay Ca
REPORT OF THE UNITED 

1 vessel only the S S George 

use at Hudson River N Y B

On April 7 1948 the last ve

Ga fleet site and the use of 

longer necessary for this purpo

During the year a survey w

cost of repairs of all vessels in 

survey was to determine the 

National Defense Reserve Fl

those vessels to be retained in 

the Merchant Ship Sales Act 

completed for those vessels in 

Research and tests

Testing of many compoun

bottoms was continued thro

pounds or variations of com

data It appears from test 

probable of meeting the need 

tions are that such compoun

tection for a period of 5 to 7 

permanent reserve fleet sites 

antifouling coatings will be 

in addition to the anticorro

vessel bottoms at all fleets 

the 1949 fiscal year and a

placed under test as they be

Laboratory tests to dete

the waters at the fleet site

year and will be continued t

Laboratory experiments w

special fungicidal compound 

results to date indicate th

developed that will complet

future growth through lowc

or self contained bomb typ

this fungicidal compound 

tection of electrical insulati

ship electrical equipment in 

project will be completed ea

New products and produc

and tested for relative valu

ponents To date no comp

relative value for preservatio
44 REPORT OF THE UNIT

Several products which wo

maintenance activities are 

results will be obtained 

continued throughout the 1

During the year approxi

maintained in operation in

POr special shortterm use 

Program at the Suisun Bay 

under loan from the Navy a

Preservation program

As of July 1 1947 substa

damaged vessels had been co

pletion warbuilt vessels had progre

In addition to the backlog 

in the work load clue to arriva

potential work load was furth

ing certain recurring items 

vessels which had been in the 

During the 1948 fiscal year 

applied to tlne performance Of 

vation work averaging appr

performed on all 1011 vessels 

Major items of preservation 

performed as follows

Work item performed 

Preservation of main propulsion machinery a

eryandassociatedPipingsystems 

Preservation of water side of boilers 

Preservation of fire side of boilers 

7

Preservation of hulls mid superstructures P as 

templated

of Preliminaryp

Scaling and spraying o fulls declksequiks and 

supe

At the end of tine 1948 fiscal 

vessels of which 103 were ove

halt been completed and 1572 

tion had progressed to an avera

vation work remaining to be p

of labor

Fleet site development

During the fiscal year deve

River Wilmington Mobile B
REPORT OF THE UNITED 

three temporary sitesHudso

con tinued Late in the fiscal y

in Cathlamet Bay was started a

discontinued The United States Corps of 

the development of sites in th

specifications approved by the 

able by transfer of approxmat

The status of development a

end of fiscal year 1948 is as fo

Percent Pe

of core of 

Site June e30 Ju

1944 

Hudson R fiver N Y

29 

Baltimore Aid 199 

James River va 5Q 

Wilmington N C

Brunewicl Ga

D4obilc Ala 

Beaumont 1es

50

Proposed facilities construction abandone

v Additional feetlities construction oulboriz

site discontinued as of May 15 1948

1 Facilities installed Prior to July 1 1947

Fleet service activities

The majority of fleet servi

period of 2 years and throug

performance of the fleet ser

efficiency This efficiency ha

of personnel and at the same 

operated full time with the m

Safe working conditions an

tions in reserve fleets are fos

jugs and thorough indoctrin

to accidents has been appro

mandays Inasmuch as app

employees are engaged in 

accident rate is considered lo

Security of the laidup v

reserve fleet is maintained by 

fire fighting equipment and 

Nearby harbor facilities and 

protection to several reserve 

of this security patrol and g

dom from serious fires dam

property by pilferage to date
46 REPORT OF THE UNITE

A pharmacist mate of the U

to each reserve fleet on a full

aid and preventive medicine 

taining adequate firstaid sup

pensation reports and claims

The program for training l

for service in the Merchant M

needs of the maritime indus

for men already in the indust

may improve their skills and b

The number of new men ac

made commensurate with the 

allowing ample opportunity fo

industry Only a small numb

licensed skilled positions in 

ments Electronics including 

Cadetmidshipmen

New officers are trained in 

Cadet Corps and at the four 

Corps has two units One is 

Academy at Kings Point Lon

United States ferchant Marin

The course of training covers 

which is spent in practical tra

During the fiscal year an aver

training at the two cadet corps 

graduated The four State m

Calif Castine Maine Hyann

Schuyler have a 3 year cour

training cruises on vessels supp

average of 650 cadet midshipm

during the year and 301 officer

The cadet midshipmen in a

fession as Merchant Marinee of

and tactics and upon gradua

Merchant Marine Reserve of tle

ensigns in the United States M

The Congressional Board of 

the United States MerchantM

15 1948 On March 15 16 a

Academic Advisory Board auth

eth Congress first session was 
REPORT OF THE UNITED 

composed of President Frede

Missouri President homer L 

Alva R Davis College of Letter

Dean James K Finch School 

and Dean Fernandus Payne 

University of Indiana The B

tions for the further improvem

Academy and these recommen

In September 1947 the cade

by hurricane necessitating the 

shipmen to the academy at Kin

authorized the restoration of 

her 1 1948

Maritime Service

1UStates Maritim

at its 

and specialist courses T and klarneda Calif 

tion are offered to both lice

all duties aboard ship L1 c

tions and shipping eoutpanie

personnel of the steo de

reconverted passenger vessels 

President lhilson the S SIrnr

Washington This form of t

vessels now under coustrltc

program 524 man were traine

a 6 months course of train

positions in the clock engine

station at St Potersbur F

Mariner Another training 

reserve at St retersbm g 

trained and upgraded bytl e 

laritim

The united Slates head Bay N 1 and conduc

The institute olfcrs a choice 

radio subjects During the 

7571 Tine institute also lo

Cit and Alameda

t navigation and radar bo

t

extent on merchant vessels

Medical irrogram The Maritime Commis

s

cooperation with the United 

81203019 4
48 REPORT OF THE UNITE

service is furnished to all trai

nel of the reserve fleet and to 

sion Aboard vessels in the 

sened and conditions have im

tion to hazards Seamen sh

medical information is supplie

agencies A consolidation of 

effected during the year

Seamen sawards

The Commission has jurisd

and awards to merchant seam

During the fiscal year a total o

and plaques were issued to se

testimonial letters

Analysis of financial statements

Under provisions of the Mer

a continued increase in the nu

ments requiring analyses and r

It was necessary during the 

services of the greater portion o

analyses be devoted almost ex

ceived under that act in order 

chasers or charterers who were 

Of the Commission Considera

of financial statements required 

chasers except those purchasi

warbuilt vessels to determine 

charter or sale contracts had b

there were also received operati

in applications under the Merc

which likewise required review 

reports on the financial aspects 

Reserve funds of subsidized opera

Audit reports covering the o

shipping companies through De

the Commission prior to July 1 

year 1941 for the remaining c

was completed during the fiscal 

year 1942 are in process for 3 

Oceanic Steamship Co carried o

Similar reports are being prepare
REPORT OF THE UNITED 

of operatingdifferential subs

quired for the intorveuing p

At the beginning of the fis

capital comprisedreserve of 6080836 20anct special res

i

4198 in the special reserve 

the capital reserve fund is no

deposit in both funds on Jun

prised of47777 132 07in the 

in the special reserve fund T

000 in the total funds was oc

payments on the purchase 

and reconversion costs and 

called closing agreements co

between the individual su

Department

Additional charter hire

Audits are required to be m

warbuilt vessels to determin

hire clue the Commission 

WARSHIPDEMISEOUT 2

SALESDEMISE 303 form 

audits had been completed i

Termination of wartime prog

The following audits were 

of wartime Government ope

a Audit of voyage rev

under various forms of servi

by the War Shipping Adnr

30 1948 The following ta

account audit program on J

Reeorded on books of agents

Aunts wc submitted by agents

Accounts audited or examined by li S 

Commission

b Audit of overhead e

for the purpose of adjusti

various forms of service ag

June 30 1948 89 of the 

completed
50 REPORT Or THE IN

PE

c Audit of accounts O

master repair coutl acts A

30 required audits had been 

In addition to the audits 

audits of subcontractors ace

repairs under IUMPSUM Cs

tlne fiscal year During the 

As of June 30 1943 414 of th

d Audit of aottts of s

Of contract As of Jule 30 

audits had bent completed

e Audit of wartime int

tracts The follosiug tabula

audit program as ofj1110 30 

Completed audits YItTI CIIv111UCrl

Paritibes Sal1i 1 5 I 

Mesc ellutcous 

Tota

ficumplete audit

Ships

Maeilities 

Miscellaneous 

Total

Total4aroaw construetu it leopr

ComPlItodaudits 1pex I

Incomplete audits

Rown wsmns icconvOrsimt allu utces 

Total

Tots inLenm prw em

LOCf 921CI Cn1LCInS 

Incomplete audits Shms

Grand total cmntmeti prozram