Annua

FEDERAL M

MARITIME A

Ca

S

t

UNITED STATES DE

For sale by the Superintendent of 

Washington 25 D C 
UNITED STATES DE

Wa

FEDERAL 

CLARENCE 

BEN H G

THOS E 

JAMES L 

MARITIM

CLARENCE G MOR

WALTER C FORD 
LETTERS 

UNITED STATES DEP

W

To The Secretary of Comme

FRom Chairman Federal Aa

trator

SUBJECT Annual Report for F

I am submitting herewith th

and Maritime Administration 

year ended June 30 1908

To tTae Congress

I have the honor to present 

time Board and Afaritime Adm

merce for fiscal year 1955

C

Fiscal 

INTRODUCTIO

AID TO SHIPPING 

Construction Differential Sub

Federal Ship Mortgage and L

Other Forms of Construction 

OperatingDifferential Sub

Aid to Vessels Over 20 Years 

Trade Route

SHIP OPERATIONS AND REPA

Oceangoing Traffi

Charters 

General Agency Operatio

Grain

S

Pro 

ShipRepair 

SHIP

Res

CONSTRUCTIO

Nuclear Merchant Ship Prog

Constructio

Ship Conversion and Rec

Technical Develop

SHIPPING STUDIES AND RE

Special Studies 

Ship and Cargo Data 

Port Developmen

Labor Data and Labor Mana

MARITIME TRAININ

United States Merchant Mar

State Maritime Academ

SHIP SALES AND TRANSF

ShipSales 

Transfers to Foreign Ownersh

PROPERTY AND SU

RealProperty 

Warehouse

Material Control Inventory 

ADMINISTRATIVE MANAGE

Perso

Program and Defense Plan

Organization and Metho

Investigations 

FINANCE 

Financial Relationships with 

Accountin 

Audit

Insurance 

Cla

Notes and Accounts Receiv
LEGAL ACTIVITIES

Legis

Contracts

Litigation

REGULATORY ACTIVITIES

Conferences and OtherA

Rates

Rates

Fore

United States Territo

Terminals

Freight Forwarders

PROCEEDINGS BEFORE HEARING 

Final Decisions of the Board 

Recommended Decisions of H

PendingProc

INTERNATIONAL MARITIME AFFA

Finan

EXHIBITS

1 Balance SheetJune 30 1

2 Statement of Operations f

1957

3 Statement of Equity of t

Years Ended June 30 19

4 Statement of Sources and A

June 30 1958

NOTES TO FINANCIAL STATEMENT

SCHEDULE

1 Statement of Operations o

Years Ended June 30 1

A

B

C

D

E

F

G

H

Employment of United State

1958

Deliveries of New Merchant S

Summary of OperatingDiffer

1958

Ships Approved for Transfe

and Flag Fiscal Year 1958

New Ship Construction on Ju

Merchant Fleets of the World 

Aid to Vessels Over 20 Ye

Maritime Board Under S

1936 as Amended

Cash and Approved Securitie

Special Reserve Funds of Su

Vi
FISCAL Y

Int

The Merchant Marine Act 

laws established the basic prin

ernment with respect to the Am

ciples provide for the develo

merchant marine sufficient to c

and a substantial portion of th

pable of serving as a naval au

ated under the United States f

composed of the best equipp

vessels manned by a trained 

The Federal Maritime Board 

established in the Department 

No 21 effective May 24 195

national principles and polici

the United States Maritime 

Board is composed of three m

and with the advice and conse

nates one of such members to b

serves ex of aoio as Maritime A

The plan transferred to the 

functions of the Maritime Com

to making amending and te

respect to conducting hearing 

thereto under the provisions 

301 708 805 a and 805 f 

amended

The Board in respect of the 

by the plan is independent of th

tions include the regulation a

and agreements of common c

wider provisions of the Shipp

fares classifications tariffs an

under provisions of the Interco

making rules and regulations 

and investigating discriminato

tering other functions transfer

is guided by the general policie
actions of the Board in reg

to it are final

The Maritime Administra

and execution of shipbuildin

programs authorized by law 

minations made by the Fed

tion carries out its functions 

Secretary of Commerce

During fiscal year 1958 co

to programs which would ac

merchant marine Considera

ment of the following 1 

program providing for a pha

modern more efficient types 

country simmediate and futu

the wellbeing of the Americ

and construction differentia

gages tradeinandbuild a

scribed by the Congress 3 

of new ship designs and mod

ing hull propulsion system

ment and other ship compon

improvement in the managem

In all program areas the F

Administration continued t

to the utmost private initiat

ance and participation limi

economic and national sec

maritime laws

The Federal Maritime Bo

addition to administering th

vote undiminished efforts to 

those involving the operat

agency agreements mainten

the operation of warehouses 

shipyards and other facilitie

the administration of the Un

Aid 

The Government aid pro

Americanflag operators in 

ficient and modern America

significant results being ach

the accomplishments with 

and the replacement of ex

programs also assure the 

facilities management abilit

the fiscal year new operatin

2
cuted with 4 existing operators 

vessels The replacement prov

placement provisions in the co

erators will provide for the c

the year 1972 at a construction 

arate construction differential 

4 operators for aid in buildin

struction cost of 167 million 

17 obsolete vessels for an allowa

of 216 million construction 

with the reconstruction of the 

and 2 cargo ships involving a t

addition there were executed 

ance of loans covering the co

estimated construction cost of 1

Construction differential s

During the fiscal year cons

were executed by the Federal 

port Lines Inc to cover the c

contract for the construction o

New York Shipbuilding Co

process and a contract was a

building Corp for the constr

under section 502 f Merch

price of the two vessels being 

building Corporation was 14298

structiondifferential allowance 

the Government will also pay 

amounting to 151 475 and th

representing the difference in c

ship basis and the award of 2 

the vessels to be constructed 

Corporation was 11754 501 

lowance on each of these vesse

will also pay the cost of nat

62435 and the increased cost o

location of this contract unde

traded in against this construct

These vessels were chartered b

period of the new vessels and 

use period was deducted from th

The Federal Maritime Boar

American President Lines Ltd 

in the building of 2 new Mar

price was 14566 000per vesse

costing 160 00 with a tentati

331 percent which is subject 

rate is developed but not to ex

485806592 
tract was awarded to the B

allocation under section 502 

vessels were traded in agai

lowance of40500 Two 

the full period and 1 for 

charter hire applicable to su

allowance

A construction differentia

Board with Lykes Bros St

building of 5 new cargo ves

amounted to approximately

ential allowance was42800 

for the cost of 25950 for 

were traded in for a total a

vessels have been chartered 

period and estimated charte

from the tradein allowanc

during the year to the Inga

bid basis

Construction differential 

Moore McCormack Lines I

cargo vessels A contract fo

awarded to the Sun Shipb

normal bid process and a c

Inc for the construction of 

section 502 fMerchant 

the 2 vessels being construc

Co was 10621 943 for ea

ential allowance was45773 

also pay the cost of the nati

902 and the increased cost 

cost between the bid submit

ships The contract price o

Shipyards Inc was 10142

differential allowance was

pay the cost of national de

the increased cost of 706 47

tract under section 502 f 

allowance of6285 500 T

operator during the constr

estimated charter hire for 

tradein allowance

The Federal Maritime B

of Grace Line Inc authoriz

ential subsidy for the reco

Santa Leonor from C2 carg

construction differential sub

The Board also approved t

Inc for construction differe

H
Independence and Constitutio

passenger space the amount to 

On June 30 1958 there we

ators applications for constru

aid in the construction of 22 

tankers

Federal ship mortgage an

The Maritime Administratio

contracts of insurance for con

and mortgage loans aggrega

other lending agencies as fo

construction loan of5342 000 

construction of a tanker b 

of9000 and a mortgage 

a tanker c World Wide Ta

000 and a mortgage loan 

tanker d United Vintners 

for reconstruction of a specia

ing Production Corp a co

and a mortgage loan of26200

tankers f Nautilus Petrole

of6072 500 and a mortgage 

a tanker g National Trans

126 000 and a mortgage loan 

tanker

8

h Overseas Oil Tr

710 00 and a mortgage loa

tanker

5

i American Eagle 

949 000 and a mortgage lo

tanker j Grace Line Inc 

construction of the combinatio

Rosa and Santa Paula k 

loan of9679 000 for constr

Tankers Corp a mortgage loa

tanker

As of June 30 1958 there 

operators applications under 

Mortgage Insurance aid cover

of 24 ships at a total estimated 

197 500 0on which insuranc

construction loans of 11200

165 800 0

A title XI default occurred i

Queen owned by TMT Trailer 

of4112 500 had been insured 

quired the payment to the m

amount of4087 292 58consis
terest of 139 876 58 Upon d

the vessel was acquired by th

close of the fiscal year plans w

ship The sale if consumma

the Government sinvestment 

This default was the only one 

from its inception to June 30 

version of 30 ships with a to

million

Other forms of construc

As of June 30 1958 bala

totaled 18401 375 85compar

in 13 construction reserve fun

lished during fiscal year 1958 

Four funds were closed by w

Deposits

2

to construction rese

839 107 62and withdrawal

In addition to mandatory 

deposits of free earnings of s

the total amount of approxima

close of the fiscal year applic

operators for authority to mak

There were pending on June 

operators for tradein allowan

the construction cost of new v

Operating differential su

Effective January 1 1958 t

20year operating differentia

tions between ports on the U S 

This agreement includes not 

company on a heretofore non

its subsidiary the Pacific Tra

The new agreement provides 

of its current fleet with 13 new 

New 20 year operating dif

cuted with Farrell Lines Inc 

and West Coast Africa Lyk

between U S GulfCaribb

South and East Coast of Afri

ping Co Inc between U S 

West Coast Africa These co

old subsidy agreements whic

31 1957 These contracts pro

ment of each operator scurr

respectively

0
At the close of the fiscal ye

the negotiations with Americ

can Steamship Co Inc and 

execution of new operating d

effective January 1 1959 in r

ferential subsidy contracts sc

cember 31 1963 and Decembe

There were pending new ap

sidy contracts from 9 Ameri

the essential trade routes of 

AroundtheWorld services E

As of June 30 1958 617

subsidy less recapture had 

ment on account to operators 

subsidized operations Janu

calendar year 1958 A sum

given in Appendix C

Aid to vessels over 20 ye

The Federal Maritime Boa

interest under Section 605 b 

amended had authorized fo

through issuance of formal o

ingdifferential subsidy on c

which will become overage p

replacements The actions of 

icated upon the ship replace

differential subsidy contracts 

lative authorizations by the B

Appendix G

Trade routes

The essentiality and Unit

7 of the United States foreign 

review was made of another 

section 211 a and b Mer

determining their essentiality 

Routes Nos 3 and 4 into one 

Trade Route No 26 At the 

of 33 routes and 3 services de

merce of the United States W

for opening to deep draft ship 

underway to determine the es

States Great Lakes ports an

United States Great LaWes

States Great LakesCaribbe

essential
Ship Ope

Oceangoing tra

Throughout the fiscal yea

ume of oceangoing traffic 

dry cargo tonnage and mate

rates and reduced sales valu

flag ships The worldwide c

Administration sfair and r

compensatory for United St

factors contributing to the 

tonnage were 1 reduced 

parison of the first eight mo

cated a drop of 125 million 

foreign countries and c in

flag tonnage of larger capac

demand for tonnage was prim

coal and grain but eventua

The Federal MaritimeBM

to alleviate the situation ins

tion of Governmentowned v

ing procedures in connec

whereby privately owned A

the fixing of cargoes unde

The Maritime Administra

other U S Government age

the requirements of the Car

Congress In the administr

gress the Maritime Adminis

Import Bank as to shipping 

its loan credits In this conn

ized to the exclusive requirem

vessels as provided by the la

tion in the cargo movements

Charters

As a result of the greatly 

ping the operation of Gove

ter decreased from 151 to 

expiration of charter agreem

by the Federal Maritime Bo

81st Congress Seven of the

were in the Alaska trade 

construction details of whic

operated under use agreemen

During the year there wa

rates both domestic and for

Ft
lishment of normal routes throu

of tonnage resumption of nor

in cost of bunkering oil The 

ward revisions of its fair and 

ernment agencies to guide them 

paid for the shipment of Gove

General agency operation

During the first quarter of 

assignment to 14 approved g

the Military Sea Transportat

this number was reduced to 7 

MSTS account of which th

Pacific area and 1 each of the 

and European areas

Grain program

On June 30 1957 there we

Libertys loaded with grain fo

Corporation Department of 

ending Jute 30 1958 26 lig

wheat additionally 83 laden 

reloaded with new grain thus 

ships at the various reserve fle

bushels of grain in storage 

1953 the reserve fleet has bee

mately 121 000bushels of g

Ship custody

At the close of the 1958 fisca

serve fleets During the year 

176 were withdrawn for a net 

distributed to the various fleet s

HudsonRiver 1

James River 3

Wilmington 2

Mobile 3

Approximately 94 percent o

ships was completed and 60 pe

of recurring preservation wa

movements in and out of the 

power for the performance of 

tion work caused a decline in th

Ship repair

During the fiscal year on t

286 ship repair inspections we
condition surveys were mad

dition at time of changes in 

was a review for subsidy el

16 operators and over 43 

was found to be ineligible fo

study was completed of rep

tors for the calendar year 19

and by type of ship was ma

tive and self evaluating pur

costs might be maintained a

A variety of other ship s

made including those to a 

owned ships at time of deliv

mine the condition of ships o

a preferred mortgage c 

ness of repair costs of vesse

ments and d ascertain th

Ship 

Research

During the fiscal year the

ment program for coordina

industryGovernment prog

objectives of this program 

dustryGovernmentwide s

lems with a view to their pra

and time tables of scientific 

our merchant marine in th

3 direct and conduct res

portation of persons and thin

The agency solicited the 

foremost engineering and re

area

The following represent s

tract was awarded to the G

study of a submarine tanke

b a contract was awarded 

bility study of a subsurface 

a connecting strut which w

c a contract was awarde

feasibility study to determ

foil principles to oceangoin

were made with the Nationa

cargo handling study and 

to the nature organization 

tration sscientific research 

there were other research pr

x17
the report under the headings 

Technical Developments

Nuclear merchant ship p

Considerable progress was m

with the design and constru

ship the NS Savannah autho

Through the joint efforts of 

Atomic Energy Commission 

of responsibility the followin

1 The firm of George G 

contract plans designs and s

speed 2014 knots length 59

ment 21700 tons accommoda

cargo

2 The Babcock and Wilcox 

and fabrication of the pressu

had completed approximately 

production work on the majo

3 A contract was entered in

York Sliipbuilding Corp for 

The keel was laid on May 22 

percent of completion The p

of 1959 and completion in Jan

4 At the close of the fiscal y

selection of it company to ope

States Marine Lines was select

companies as necessary The 

U S steamship companiesand 

Isthmian Lines Inc serves a

countries in Europe the Near 

Far East

5 At the close of the year co

tion of an organization to trai

NS Savannah On July 25 

selected to negotiate a contra

The Maritime Administratio

continued efforts toward achie

clear powered merchant ships 

tive with ships having conv

a the General Motors Corp 

eral Dynamics Corp complete

cated that a high temperatu

closedcycle gas turbine offers 

for merchant ships b a con

Dynamics Corp for further re

cooled reactor and the initia

satisfactorily at the year send 

485806 50 3 
operation which will require 

tract was awarded on March 

to George G Sharp Inc on 

adaptation of a boiling wate

excellent potential of achie

power

In addition considerable e

mum safety to passengers cr

ship environment including 

ing to docking loading and 

accidental emission of radioa

Construction

The total number of ships u

in United States shipyards de

ponement or suspension of c

volume and oversupply of wo

ness of the situation was cons

range replacement program o

program showed that at the e

construction conversion or o

million worth of work to the 

having a construction value o

on order under the subsidized 

additional ship under this pro

an estimated construction valu

At the beginning of the fis

under Maritime Administrat

cargo vessel 1 cargo ship d

small cargo ships all under 

Navy were completed On

Inc was completed and deli

for Grace Line and 2 passe

Lines Inc being constructe

1936 are scheduled for deliv

was being constructed under 

for Government account

During the fiscal year co

tion of a survey ship for t

nuclear powered passengerc

account under Public Law 8

tion to contracts awarded un

for the construction of ship

American President Lines 

McCormack Lines covered 

ConstructionDifferential S

Criteria for implementing 

Congress amendment of s

flp
1936 were approved The a

merceFederal Maritime Boa

dent allocate ship constructio

for purposes of national defen

allocated under this act to We

allocations are covered under 

Shipping

Two oil tankers under cons

delivered during the fiscal ye

pleted during fiscal year 1957 

ministration by virtue of con

defense allowances totaling 50

tional defense allowances of

allowance on 5 obsolete vessel

The critical conditions wh

years with regard to the availa

of steel and certain major ship 

appears that deliveries will be 

ments

A summary of new constru

Ship conversion and rec

The conversion of the SS 

sengercargo vessel for Ameri

the ship was delivered on Ma

the last of 4 Liberty ships mo

improvement program and e

of the other 3 ships was continu

Bids were received late in 

American Export Lines for re

Independence and the SS Con

capacity and b American P

tion of 4 Marinertype cargo ve

Technical developments

Under the Maritime Admins

velopment and promotion of a

capable of effectively moving th

in peacetime and serving as a na

or in periods of national emerg

during the year to technical ma

In the field of ship design 

ardization of container sizes an

trailership designs and to rede

there was a study completed by 

indicated the effects of the ope

existing and future ships and o

in the combined Great Lakes an
In the area of machinery 

utilization of gas lubricated 

driven generators during sh

were continued with respect 

and vessel washdown as a 

warfare countermeasures 

ductile iron to provide shock 

Continued efforts were ex

cluding evaluation of cargo 

foreign built hydraulic winc

with respect to communicat

antennas and bridgetobrid

crew accommodations refrig

sistence of ships personnel

Shipping S

Special studies

Continued efforts were dir

ous reports in connection w

Federal Maritime Board S

Planning Board for Oce

Organization

Ship and cargo data

The collection and proces

foreign and domestic deeps

on an increased scale App

of entrances and clearances 

States Data on foreignf

States steamship companies 

during 1956 were prepared 

differential subsidy purpos

data were prepared for hea

in applications for the appro

agreements submitted by 4 

studies were made and dat

by foreign governments to t

foreign governments owne

percentage of foreign trade 

Among the many reports 

were

Merchant

3 special

Fleets

ones

United

as follow

and Ore Carriers and OreO

aration of a number of reg

including those shown in Ap

W11
Americans with 156 successfully completing the 4year course of

15
eags ad otese ade ques peay to ts spg eet

16
ber 16 1957 by the High Court of the Colony of Singapore At the

17
esut ots eeauatoa te aeda esee ag Stato

18
was declared excess to the Ge

house space requirements at 

c leases to private interest

tained by the agency in even

resulting in a return during t

tenance of the property by th

and d permits to other Go

real property facilities were c

Warehouses

The Administration cont

owned warehouses for the sto

in a national emergency for 

fleets and for the constructi

the end of the fiscal year the 

ministrative

1

equipment stoc

541 702

Material control invent

There were 384 ship and r

ventory certificates for consum

of 640 418 as accounts recei

Certificates of overages and s

33933 as accounts receivabl

Surplus and excess person

acquisition value of25465 439 

ministration This amount 

countries of property valued 

foreign currencies equivalent 

acquisition value of2506 777 

gift transfer and sale under 

acquisition value of1815000 

Conditional sales of tailsha

of Mariner vessels for a retur

ment was sold in accordance w

Federal Property and Admin

ceipts applied against the pu

Administra

Program and defense pl

Continued efforts were exp

grams which would achieve 

ments for a well balanced m

were made with due consider

the broad fields of ship opera

486809594 
The Director Office of Defe

mittee on Maritime Policy co

of Defense Mobilization the N

to develop and evaluate facts 

merchant ships for national d

and logistic concepts The Cs

fense Mobilization Board in Au

Council in December 1957 rea

merchant marine for national 

fare with emphasis on activ

emergency

Personnel

Thomas L Stakem of Virg

on May 15 1958 with the con

Federal Maritime Board for 

1962

The total number of employe

Board and Maritime Admini

decrease of 35 percent under 

reduction of approximately 1

agency in keeping with budget

Organization and method

In the interest of providing 

work programs during the fis

effected as were necessary reo

tions Surveys were conducte

in actions being taken as app

alignment of the organizatio

establishment modification o

methods and c streamlin

major surveys included ship 

research activities

Investigations

The Federal Maritime Boa

gative program in the field o

ters as practices of freight fo

tions alleged rebates on f

regulatory responsibilities D

were initiated Of this nu

either by determination that 

with the regulations obtaine

and board orders issued Th

various offices of the Board w

of the cases

20
Financial relationships 

Activities in connection w

ments and the obtaining o

having contracts with the Fe

Administration continued a

Related activities included 

financial statements and the 

with regard to new ship cons

These financial activities 

ship loan and mortgage insu

inandbuild transactions

Accounting

Accounting operations we

accordance with principles 

troller General of the Unite

Federal Maritime Board and 

in the exhibits and schedules 

During the current fiscal y

agreement was executed with 

Administration agents who 

Of the 51 agents under N

originating in 1951 38 were 

accounts of 25 had been clo

in the process of being closed

Audits

Audits of the eligible sub

ferential contracts except f

expense have been completed 

in payments up to 90 percent 

covering such expenses Du

the final 10 percent of accrue

ing protection and indemni

subsidized operators for va

result of completed audits of 

bareboat charter agreements 

because of pending litigatio

construction reconversion a

on a current basis As a res

year 1958 additional recapt

52150 00

Appendix H sets forth by 

capital and special reserve 

137 30043 and 117 259 4
fiscal year such balances amo

respectively

In addition to mandatory d

Administrator subsidized ope

deposits into the statutory res

profits otherwise available for 

plications for voluntary depos

for 7 subsidized operators an

cations of 5 operators totalin

Insurance

As a result of competitive b

demnity risks was provided by 

Insurance Company of Los A

ships operated by general age

for the Military Sea Transpor

During the fiscal year 1958 

wartime protection and indem

recovered from underwriters 

of June 30 1958 the underw

settlement of outstanding claim

Under the Maritime Admi

marine and war risk insuranc

continued to be assumed on i

seamen insurance remained 

contractoperated tankers A

under this arrangement pay

approximately 48000 was se

resulting in a net premium sav

During the fiscal year 1958 

program as authorized under 

as amended 1010 new war r

June 30 1958 binders repor

war risk hull 914 war risk 

war risk second seamen Si

binder fees and binder extens

total of 119 362 in expenses a

was paid to the underwriting a

The Maritime Administratio

the collection of monthly pre

ance underwritten as authoriz

75 Revised From inceptio

war risk builder srisk policies 

429 21 were received

Subpart F of General Ord

insurance on cargoes in the 

surance is not available on re

26 contracts executed with ca

effect

22
The Maritime Administra

newals thereof obtained in c

terers and subsidized opera

Kind of Insurance 

MarinoHall 

Marine Protection and Indemnity 

War Risk null 

War Risk Protection and Indem

Notes and accounts rece

Of the balance of notes an

totaling approximately 16 

860 00 represents items on 

quired The remainder was 

collected at the time of final 

partment of Justice notes a

exclusive of mortgage loan 

settled upon completion of 

claim or litigation status and 

ping Authority general age

year totaling approximately 

less than 21 percent was o

debtors exclusive of other Go

Claims

The following reflects the 

ralty Act during the year 

claimed were settled in fav

b 14 cases upon which 254 

the Government for51987

Leg

In addition to the specific 

and opinions were furnished 

time dministiator otherCoc

ating and administrative offic

tinal Administration in conne

involved in all of their progr

sions and contacts were main

ping industry and other Go

matters involved in the adm

formulation of policy and t

thereto
Legislation

Testimony statements or re

Secretary of Commerce or th

on Maritime legislation enact

these were authority to cons

Pacific services authority of 

from the Treasury to meet def

surance contracts indemnifica

bility for nuclear incidents ar

tion of the NS SavannaA aut

statutory reserve funds in co

validity of conference and du

tion 15 Shipping Act 1910

Similar reports were prepa

lative proposals including tho

sea foreign freight forwarder

ship requirements under the Me

build program redocumentat

charges for Government serv

prototype vessels 20year eco

Contracts

A voluminous number of co

ments were executed in conne

programs and business of the 

ministration These include

private technical and research 

tional and nuclear type ships 

tracts and separate but relate

tradein of obsolete vessels and 

was made of new constructio

the construction of a hydrog

Geodetic Survey required con

gage insurance or contracts of 

in connection with the construc

2 combination cargopassenger 

subsidy contracts

During the year there were 

of diversified matters of contra

concerning this field Specific 

sion of a pro forma construct

mortgage and loan insurance 

and use of obsolete vessels 

operating differential subsidy 

Order 31 covering the establ

tory Capital and Special Rese

capital necessarily employed 

M
d revision of the Voluntary 

of the Marine Builder sRisk P

Litigation

During the fiscal year ther

siderable amount of litigation 

and orders of the Federal Ma

charges and practices of carri

States

In this connection there we

among which the most signific

port v United States and Fede

of Appeals D C Cir affirm

for brokerage allegedly earne

in the Supreme Court b 

and Federal Maritime Board 

Cir dismissed for lack of ju

decision of the Board in deny

cargo from West Coast ports t

v Isbrandtsen in which the S

Court of Appeals D C Cir 

Shipping Act of 1916 the co

employed by the Japan Atlanti

foreign commerce of the Unite

There were at the close of 

review of Board orders and d

There was a continuation of 

Merchant Ship Sales Act of 1

claims involves the refund of 

charters of warbuilt ships 

million in claims against the G

receivable by the Government 

effect upon the Government s

before the Court of Appeals 

ment sdefense of time bar of lib

hire in addition 27 other case

additional charter hire were p

category those involving claim

restore ships to standard and 

perform class work an aggreg

19 pending Court of Claims 

tratively settled for 433 140 

was contemplated on claims fo

Among other claims pending w

ground of the invalidity of th

suits totaling 886 258 involvi

promises given as conditions to 

vessels to foreign registry 2 s

to charge the floor price for s
adjusted statutory sales pr

51976 for refunds of desira

by aliens totaling 92668 U

receivables against foreign 

about 620 50 of which 91 

Justice

Some of the other significa

Act were a a request to 

review of the decision of the 

of Isthmian Steamship v Un

freight owing from the Depa

was without jurisdiction of 

libelant sdebt for additiona

been collected by setoff aga

Court of Claims in Alaska 

upheld the validity of the M

ship at the statutory floor pr

sales price c a decision o

United States which refused 

vessels the plaintiff purchase

instead the Court ordered a 

made on the plaintiff smis

United States citizen d a 

D Wash in the case of O

denying refund to the plain

they were voluntarily paid a

in 3 separate cases holding 

strapping and prior repairs 

barred

Cases in litigation also in

Chapman and Scott Corp in 

value of the Governmentown

destroyed by fire b Unite

Aristotle S Onassis cry a

of contract to build a tanke

flag in consideration of au

registry other ships suits ag

been impleaded involving 

Francisco which occurrence 

tial property damage

Claims against Amtorg Tr

ernment involving 10 mill

been referred to the Depar

settlement along with other 

from World War II activitie

by the Maritime Administra

for the payment of damage

Co arising from its defau

American President Lines

26
Regulat

During fiscal year 1958 ca

continued to decline and cos

many carriers being confronted 

declining revenues to continue

cargo offerings intensified com

the steamship conferences main

collapse with resulting rate w

strated that the conference sys

tually the only workable sub

international trade is involved 

tended that this system cann

contract system which appears 

able to carriers in the foreign tr

has been the subject in recent y

Maritime Board and the court

the Board during the year form

to clarify the question of wh

approval under section 15 Sh

effective Oral argument on t

by interested parties and ac

of the year

Conference and other ag

The decision of the United 

time Board v Isbrandtsen et 

of the JapanAtlantic and Gu

grave doubts as to the legali

ployed by conferences To a

the Board and the courts pro

lation which would continue 

rate contract arrangements in 

ganized under agreements ap

1916 Public Law 85626 w

interim will provide an adequ

permanent legislation in this f

The Federal Maritime Bo

modifications and 18 cancell

denied approval to 1 Amon

were 3 freight conference ag

from Caribbean to Pacific Co

and from Israel to North Atl

freight forwarders including 

New York forwarders and 1 b

The Board instituted on it

spect to agreements filed for 
operation under a new confe

of rates in the trade from G

to U S Great Lakes ports 

rate fixing conference agree

ment and modification the

Port Commission and Carg

land grain elevator and oth

age and handling of grain

Ratesforeign

General increases in freig

domestic offshore trades d

have been carefully reviewed 

in formal investigations on 

fulness of the increased xate

lantic and GulfPuerto Ric

Carriers who have made the

possible effect of the resultan

trade and have sought ways 

further increases or even effe

largely toward improvemen

better than 50 percent of the 

connection the Board has aut

experimental conditional rat

much attention as a means o

ing and trucking of cargo 

tuted during the year betw

Rico and a service was bei

waiian trade The operatin

fully studied during the comi

Freight and passenger ra

were examined for ambiguit

tions which led to imprope

discriminatory rates and c

practices

The Board on its own mo

spect to misclassification of 

United States to Venezuela 

validity of contracts entered 

biana S A for the movem

United States

Rates United States ter

Freight and passenger rat

filings for 18 new services so

tation of household goods an

of 88 percent over the previo

E
of good cause the Board ap

tions to establish rates and rat

The Board on its own motio

fulness of increased rates in th

and GulfPuerto Rico and P

vestigation into the establishm

man Steamship Company of 

Baltimore Philadelphia and 

ceeding was vacated following 

rier srequest

Terminals

A total of 1635 tariff sche

compliance with formal rulin

shipping laws

The Board in connection 

regulations and practices of t

ports and its rulemaking proc

such operators ordered said 

concerning their operations fo

on this matter

A hearing was held involvin

tions set forth in tariff adopte

loading and unloading of wate

New tariff of increased charg

such terminal operators who 

charges are found by the Bo

to the commerce of the United 

in the filing of many informa

porary boycott of the piers b

informal complaints relative 

boycott

Freight forwarders

The following proceedings w

ble enactment of legislation b

of revised rules and regulatio

freight forwarders and b 

the payment of brokerage and 

ing the limitations which the B

The number of persons firm

of registration as ocean freig

increase resulted from the is

trants while the certificates o

the fiscal year The Maritim

a list of United States citizen 

cies concerned with the move
Proceedings B

At the beginning of fisca

pending and there were file

examiners conducted 29 hea

andor Administrator heard 

final reports in 14 cases 

andor Administrator in 11 

Final Decisions of the B

Docket No 744 Terminal R

Board found that handling and 

and ship hook must be assesse

benefit therefrom but may be bil

instance

Docket No 785 DJ Roach 

trict Commission and Cargill In

sections 156 First and 17 Shipp

Docket No 787In the Matte

Company Sanu Trading Comp

Respondent Kaye was found to 

1916 and the Board sGeneral O

on shipments made in the names 

ownership and control Kaye a

found to have knowingly and wi

taining transportation at less tha

be applicable Cease and desist 

freight forwarder registration is

pany was revoked

Docket No 7881880oiated B

Company et al Docket No 796 

pany et al and Docket No 79In

the City of Oakland and Encinal 

Encinal Terminals and Agreemen

Matcinal Corporation These rel

and for report The agreement 

cinal Terminals for the formation 

than the true and complete copy 

parties as required by section 15 

approval of the agreement which 

drawn These respondents not h

their true agreement were requir

be in violation of section 15 Ap

Mateinal Corporation having been 

Matcinal Corporation was a part

and the Port of Oakland were fo

carrying out prior to Board app

which a designated pier in Oak

as licensee for a period of 1 year 

expired by its own terms no acti

No 80951 extending the life of A

Docket No 794 Inthe Matter 

ing Co Inc Luis Louis A P

United States Oil Corporation 

tion 16 of the Shipping Act 1916 

Molina Forwarding Company of o

30
the other respondents they know

device or means obtained transpo

charges which would otherwise b

tration issued to Molina Forwarding 

Docket No 808Pacifo CoHaw

crease in Rates Proposed increas

coasts were found to be just and 

pineapple juice Further increase w

Docket No S31American Pre

CoAgreement No 8061 Apport

Siam The temporary approval gr

will be withdrawn 60 days from 

within such time the agreement is 

vessels will carry not less than 345

APL and Lykes shall be authorize

8061

Docket No 563American Pre

Soilin0s in the AtlanticStraits s

that 1 United Statesflag serv

quate and additional vessels sho

Merchant Marine Act 1936 was n

ential subsidy to American Preside

and 3 the authority to American 

service in connection with such s

under section 805 a of the Act o

Act

Docket No 568Matson Orie

fereatial Subsidy on Trade Rout

found that 1 United Statesfla

United States and the Far Fast T

tional vessels should be operated 

Act 1936 was not a bar to the g

Matson Orient Line Inc for ope

present service of United Statesf

was not found to be inadequate a

granting of an operating differen

service

Docket No 571United State

Subsidized Sailings on Trade Rou

the present service by vessels of U

Route 12 and additional vessels s

Merchant Marine Act 1936 does n

ingdifferential subsidy to United 

additional railings on this route

Docket No M81Boston Shi

Two SSMAS Type Vessels Th

Boston Shipping Corp to charter 

service on offshore oil and gas w

made findings and certified to th

Law 091 81st Congress that the 

such service was not adequately 

vessels were not available for ch

ditions and at reasonable rates

Docket No M82American P

Review of Bareboat Charters o

Cargo Vessels The Board found 

conditions do not now exist justif

vessels involved
Recommended decisions 

Docket No 726Isbrandtaen C

ware et al Docket No 732H

at No 733H Kempner V Lyk

Galveston Cotton Company v Lyk

No 735Texas Cotton Industries 

contractnon contract rate system

terranean Ports Conference inc

non contract rates and shipper co

natory or unfair detrimental to 

Shipping Act of 1916 Agreement

not found to be in violation of sa

said agreements were found to h

predecessors under section 15 of 

may be declared unlawful in pend

found that the complaints should 

been overcharged to the extent n

have not proved damages otherwis

Docket No 800Empire State H

New Jersey Motor Truck Associa

Docket No 801Truck Loading 

YorkInvestigation of Rates and 

Docket No 821In the Matter of 

port Lines Inc American Presid

can Stevedores Inc Internationa

ent marine terminal operators Ta

for the loading and unloading of 

port of New York was found to 

Federal Maritime Board Agreeme

modifications of an agreement 

Departures from Tariff No 3 wit

3 P m and denial of partial ser

sonable practices relating to the r

violation of section 17 of the Act 

it was found to be non compensat

the meaning of section 15 of the A

postponed upon request of the Boa

not shown to be unlawful except 

iron and steel and tinplate which 

to handling other cargo and thus 

of section 15 of the Act This tar

publishing and filing new rates on 

Operations under Agreement No 8

providing for the loading andor u

front terminals in the Port of New 

terminals not shown to result in vio

or 17 of the Act Complainant was 

to reparation The complaint in N

in Dockets Nos 801 and 821 should 

Docket No 807Atlantic d Gul

Charges Proposed tariffs of respo

in consideration of the rate base 

respondents

Docket No 820 Brokerage on 

Jack Pollack Phyllis Pollack Lynn

Co Inc Bimer Textile Company I

found to have collected ocean frei

through 1956 under circumstances 

Of section 16 of the Shipping Act 

32
should be cancelled Respondents 

knowingly and willfully directly 

means obtained transportation by 

charges which would otherwise be 

Shipping Act 1916 and these matt

Justice for appropriate action R

have had any knowledge of the ac

in such activities as would constitu

ings should be discontinued as to th

Docket No 823Cla8siflcation a

JarsHazelAtlas Glass Company 

not to have misclassified shipment

transportation rates therefor in vio

Docket No 828 General Increas

increased rates and charges and 

were found to be just and reasonab

Docket No S57States Marin

tion of Delaware Application fo

Continent Service U S Pacific 

CoastMediterranean Service No 

States Marine Corporation of De

Under Section 805 a Merchant 

605 c Merchant Marine Act 1

differential subsidy contract to S

TriContinent service transpacif

subject to certain restrictions F

section 805 a of the Act to State

tions and to its subsidiary Isthmia

service

Docket No S60Isbrandtsen C

ferential Subsidy Agreement Eas

Sub No 1 Isbrandtsen Compan

Section 805 a It was found tha

1936 was not a bar to the grantin

to Isbrandtsen Company Inc for t

Round theWorld service The en

coastal service from ports in Calif

North Atlantic ports of the United 

Eastbound RoundtheWorld servic

such service will not result in unfa

tion operating exclusively in the co

Pending proceedings

At the close of the fiscal year th

were initiated on the Federal Ma

Internation

The 9th meeting of the Pla

North Atlantic Treaty Organ

The Martime Administrator 

The 10th meeting of the Pla

D C in April 1958 under th

istrator The first meeting ap

mobilization planning for th
merchant fleets The second 

nations recommendations to 

fleets

The ratification by the Ja

mental Maritime Consultativ

vided the 21 ratifications ne

an international forum to d

shipping serve as the admin

Sea Convention and deal wit

sea waterby oil and the trans

sentative of the Maritime A

meeting of the Preparatory 

for the First Assembly of th

tive Organization scheduled 

In other areas of internati

ministrator headed the U 

Conference on Maritime Law 

tober 10 1957 and lie presen

vessel program before the In

at Genoa Italy on October1

was represented at the Law 

tions in Geneva in March 1

Maritime Labor Conference 

in Geneva April 29 to May 

tration official was designate

Technical Committee on Por

Stimulated by the Stockh

ference of the signatory pow

Safety of Life at Sea 1948 a

tion 1930 was scheduled for 

tion will serve on five com

position

The Maritime Administrat

partment of State in comba

governments which denied p

In this connection it confere

ministration with representa

members of the Brazilian sh

tive situation facing Americ

special efforts were made by 

the Maritime Administratio

petitive position of United Sta

34
FINANCIA
x

W

36

ti 

IA 

K 

H 

a 

nl 

a

y 

6 O67 O 

Z O C

W d y

p

2

o n

MV 

C

GJ

CWO m

36
N1

J

7

zo0

o
FEDERAL MARITIME BO

DEPART

Statement of Operations ter 

Administrative expenses 

Other costs and expenses

OPERATIONS OF MARITIME ADMINISTRATIO

Loss on vessels Sol lost or abandon

Operating a19

Loss on sale of fixed assets other tha

Revenues and reimbursements

Loss on sale of surplus material and 

Maintenance of r fleet v

Maritime training programam 

Operation oL ofs

Maintenanceo reserveShiPYa

Costs and expenses

Other Income

Maintenance of reaerce fleet v

Maritime training program 

Operation of warehouses 

Maintenance of ream shipyard

Net costs and expenses

World War II actietties 

Maintenance of reserve fleet veo

Maritime training progra

Operation ofware

Maintenance of reserve shipya

Direct subsidies and costs attributable t

Net income loss from Federal Ship Mortg

Estimated operatingdifferentlal sub

Adjustment of estimatedreeapturab

Construction differential subsid ISO 

Cost of national defense feature s

Administrative expenses 

Other costs and expenses

Loss on vessels Sol lost or abandon

Loss on sale of fixed assets other tha

Loss on sale of surplus material and 

Inventory and other property adju

Research Rod tests 

CoSLOl mgreserveflcet vesseMLSeellaueou

Other Interest Incomeearned on notes and mortgag

Other costs and expensesn

Net cost of current year operations note 

ADJUSTMENTS APPLICABLE TO PRIOR YEARS

Net charges arising from adjustments and 

World War II actietties 

Participation in profits of World War II 

NET COST OF MARITIME ADMINISTRATION O

Net income loss from National Shipping 

Net income from War Risk Insurance Progr

Net income loss from Federal Ship Mortg

NET COST OF COMBINED OPERATIONS note 

Includes reconstructiomdlffereatial subsi

a See note on schedule 1

The notes to financial state

38
FEDERAL MARITIME BOAR

DEPARTM

Staternent of Equity of the Uni

June 3

BALANCE Cu 8E or
FEDERAL MARITIME BOA

DEPART

Statement of Sources and 

SOURCES Funds appropriated by the Congress 

Fund advanced by the Department of t

Collections on mortgage loans receivable 

Proceeds from the sale of vessels owned 

Funds provided by the Secretary of the 

against funds of the War Shipping AdProceeds from the sale of fixed assets oth

Contributions received for construction 

Total funds provided 

APPLICATION

Net cost of operations per Statement o

Items considered to net Cost of oper

Loss on fired assets sold lost or 

Vessels 

Other 

Payments into the General Fund ofUS

Expenditures for vessels owned and und

Cost of accrued annual cave 

Expenditures for land and site develop

struetion in pro

Warehouse materials transferred to mob

Unobligated balance of appropriations t

Proceeds of settlement of accounts recei

Material and supplies transferred to Sta

Increase in working capital during the y

Total funds applied 

Summary of C

AsswesCash

Advances Notes and accounts receiva

Accrued interest

Materials and supplies

Other assets

LIABILITIES AMUTAS payable and other liabili

Reserves 

Net unternamated voyage revenue 

Total 

WORKING CAPITAL 

INCREASE IN WORKING CAPIT

Disbursements of 106 377 214for vessels 

offset against liabilities for advances receive

IF
FEDERAL MARITIME BOAR

DEPARTM

Notes to Financial State

1 The balance sheets and the statements o

certain steamship companies which operated 

mentsNo movision for loss has been made in 

prove to be uncollectible Notes and account

domestic firms and individuals and foreign n

June 30 1957 which had been referred to the 

able at June 30 1958 included mortgages which 

Dome

Foreign

stic 

Total 

3 Inventories of materials and supplies are 

mated cost to the Administration No con

financial 9Inaccordance statementswith do notgeminclude rally allowance

accepted 

a result of this practice recorded losses on sale

expenses are less than they would have been 

5 Included at vessels under construction a

costs of 118 752 06and at June 30 1957 seve

Love total actual been delivered construction to thecostsDepartment rove beenofdetethe 

0 The net operating differential subsidies 

after termination of the recapture period aoyl

Therefore the estimated recapturable unoun

1957 will be revised subsequently ur the ligh

contracts The provisions for esifnmled ope

June 30 1958 and 129 831 753for the year end

5 million and e million respectively applic

7 The Maritime Administration was con

struction loans and secured interest payable 

and 3696 030at June 30 1957 Cunnnhnre

139 62212212 at June 30 1958 and F14 442 500 

prelaunching War Risk Iluilders Risk Inmran

1957 T Nfanfimn rlminicf mfinn wav ennt

anto
Less

FEDERAL MARITIME BO

DEPAR

Statement of Operations of Na

Jun

6HIPPMO OPERATIONS

Vessels operated by general agents

ADMnuarsatUna EBPENsEs

Terminated voyage ras Itstermin

NET INCOME Loss FROM OPERATioxs

Revenue 

Eaperee

dross Profit from vessel oper

Chartering of vessels to others

Revenue 

Expense4 

boss Profit from chartering op

Total gross income from shipp

NONSHIPPINO OPERATIONS

Vessel reactivationCost

Vessel deactivation costs expense of re

Miseellaneous expense

LessReimbursement of vessel reactivat

Reimbursement of vessel deactivat

Miscellaneous income 

Not cost of noushipping operations 

ADMnuarsatUna EBPENsEs 

NET INCOME Loss FROM OPERATioxs 

Excludes 3 840 421 transferred to Genera

determined to lave been erroneously depos

years 1952 to 1956

42
APP
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qaQ
Summary of Operating Differe

Name of operato

Ships Approved for Transfer to 

F

PRIVATELY OW

tons and over

GOVERNMENT O

Grand

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m0000 lHC7C5Wl lrnlE7WMMWd
Aid to Vessels Over 20 Years o

Under Section 605 b 

Company

American

Farrell Lines Inc

O ace Line

Lykes Bros Steamship Co Inc

Mississippi Shipping Co Inc

Moore McCormack Lines

52
Company 

Moore McCormack Lines Inc MO

MO

RO

MO

MO

RO

MO

MO

MO

MO

MO

MO

MO

MO

MO

MON

MO

States Steamship Company CH

JAP

AM

PH

PAC

C E 

A

Cash and Appro

in the Statutory Capital and Spec

as of 

Operator 

mnsp

First subsidized voyage commenced June 0 

NOTE Accrued mandatory deposits applica

December 31 1957 not included in the above 

applicable to the Capital Reserve Fund depr

Fund excess profits