410

FEDERAL M

MARITIME A

T

UNITED STATES D

For sale by the Superintendent o

Wasbington 25 D 
UNITED STATES DE

SINCLA

Wa

FEDERAL 

CiLARENCE 

BEN H G

G JOSEPH 

A J WLIA

MARITIME 

CLARENCE G MOR

WALTER C FORD 
Letters o

UNITED STATES DEPA

Wa

To The Secretary of Commerc

FROM Chairman Federal Mar

trator

SURJECT Annual Report forfis

I am submitting herewith the 

and Maritime Administration 

year ended June 301955

To the Congress

I have the honor to present th

time Board and Maritime Ad

Commerce for fiscal year 1955

CO

Fiscal 

INTRODUCTION 

AID TO SHIPPING 

Construction differential subsi

Other forms of construction a

Operatin gdifferential subsid

Construction reserve fund

Federal ship mortgage insuran

Trade routes 

Traffic 

SHIP OPERA TIONS 

General agency activitie

Grain storage 

Charters 

Shipcustod

Other activities 

SHIPBUILDING AND REP AIR 

Conversion

Building proposals 

Technical developmen

Ship repair 

SHIPPING STUDIES AND REPORTS 

Special studies and periodic rep

Ship cargo and labor dat

Labor management relations 

SHIP SALES AND TRANSFER

Shipsales 

Transfers to foreign ownership 

Charters to aliens 

MARITIME TRAINING 

United States Merchant Marine 

State maritime school

PROPERTY AND SUPPLY 

Shipyards

Term

Wareh

Reserve training stations 

Port developmen

Material control inventory an

Purchasing 

Records management 

ADMINISTRATIVE MANAGEM

Program and defense plannin

Personne

Organization and method

Internal audits 

Security and investigatio
FINANC

Accountin

Auditing 

Insuranc

Accounts receivable 

Claims 

LEGAL ACTIVITIEB 

Legislatio

Contracts 

Litigatio

REGULATORY ACTIVITIES 

Conference and other agree

Freight rates foreign 

Freight rates United State

Terminal

Freight forwarder

PROCEEDINGS BEFORE HEARING 

Final decisions of the Board 

Recommended decisions of 

Pending proceedin

INTERNATIONAL MARITIME AF

Fina

EXHIBITS

1 Balance SheetJune 30 

2 Statement of Operations 

1954 

3 Statement of Equity of 

Years Ended June 30 

4 Statement of Sources and 

June 30 1955 

NOTES TO FINANCIAL STATEME

SCHEDULES

1 Land and Site Developm

1955 

2 Statement of Operations 

Years Ended June 30 

3 Statement of Operations 

Inception to June 30 

A Status of Operating Subsidy 

B Deliveries of New Merchant 

C Ships of 1000 Gross Tons a

yards July 1 1954 to Jun

D New Ship Construction on J

E Employment of United State

F Merchant Fleets of the Wor

G Ships Approved for Transfe

Flag Fiscal Year 1955 

H Cash and Approved Securit

Special Reserve Funds of S

I Claims on Hand June 30 

Claims Settled Under Suits 

Vi
FISCAL Y

Int

The Federal Maritime Boar

continued to direct their effo

sponsibilities under the mariti

motion of an American merc

mestic waterborne commerce a

commerce of the country cap

time of war owned by and op

citizens of the United States 

safest and most suitable type

efficient citizen personnel Th

notable in the administering of 

construction of new and replac

fleet 2 repair of reserve flee

event of emergency 3 devel

signs for new construction a

active or reserve fleets 4 pro

merchant marine and 5 imp

of the agency

In meeting the objectives of 

Board Maritime Administrat

ciples of a providing for the 

eration of the merchant marine 

ment of the shipping business 

and b limiting to a minimu

to the extent necessary to me

security needs within the pol

and c administering the cos

efficient and effective manner

With respect to the ship co

way has been made in the cons

and the conversion of existing 

cence of the vessels of the m

tinued employment and availa

construction knowhow esse

During the course of the yea

and five ships were being recon

the country in which the age

1 The last 4 of a total o

type ships3of thes

A total of 9 of these s

conversion work hav

June 30 1955
2 Construction under c

included 2 refrigera

the conversion of 1 

ship

3 Work commenced on 

tracted for with 3 

for the tradein of 

against construction 

In addition a contract was 

rollonrolloff cargo ship fo

sion of one ship to a Great L

private operator under Publi

under private contract with T

There were pending at the 

three private operators for th

sengercargo vessels submitte

subsidy contracts and requ

aid An application also wa

the purchase and conversion 

ship for operation between e

European ports

Public Law 781 83d Cong

gave impetus to private fina

with particular reference to 

the mortgage aid provided 

1936 act Under the provisio

tions were filed during fisca

ceived from companies desir

to the Department of the Na

575 83d Congress which aut

der certain terms up to 15 n

acteristics These applicatio

Maritime Administrator dur

Allied with the ship const

repair program under which 

drawn from the reserve fleets 

upgrading of the mobilizatio

sorely needed work for the 

three coastal areas

In connection with the dev

signs considerable progress 

studies are contemplated in t

ics and cargo handling De

in progress with respect to L

stallation of new propulsion 

gas turbines b installation 

modification of hull lines to in

In anticipation of the use 

Maritime Administration en

Atomic Energy Commission 

2
entered into with a private 

with considerable research ex

tion of technical and econom

nuclear power to merchant s

Administration made several 

pulsion of a tanker several t

ships and an auxiliary naval 

The Federal Maritime Boa

addition to administering the 

to devote undiminished effort

Surveillance was maintain

664 83d Congress which pro

pation of United States priv

movement of Government ca

available at fair and reason

During the year the Federa

tion continued to review the 

in order to achieve the grea

taining Government subsidy 

operation of a private Americ

determinations of the Maritim

lished during fiscal year 195

United States flagservice re

TriContinent and Roundt

in United States foreign tra

modification in procedure in 

rates thereby virtually placi

in turn will enable the Gov

to the shipping industry as f

The reserve fleets at the clo

ships replacement value app

tion of this value and the p

war the agency continued t

and disruption caused by a h

the mooring of these ships i

With improvement in the 

an opportunity to offset their 

freight rates from 10 to 15 p

The interest of the Federa

adherence to the principle of 

rine owned built and expande

citizen operators Corollary 

Government sparticipation s

and mobilization requiremen

principles enunciated by the 

Maritime Board Maritime A

facilitate the development of 

marine of adequate size and 

the country swaterborne com

the requirements of emergen

385082582
Aid 

Construction differential 

The situation with respect 

ence and SS Constitution to 

stantially unchanged and th

General of the United States 

tial allowance for these ship

mal holdback of subsidy pay

continued to exceed 7 millio

eral s exception a specific w

company has not been necess

Redetermination of allowa

for reconditioning of the fou

to as the Foum Aces by Am

before the Federal Maritime 

and there was being withheld 

the sum of 3 million repres

allowance

The application of Grace 

aid in the construction of two 

Santa Paula and SS Santa 

between New York and Cari

during the fiscal year The B

tions for these two ships and 

for their construction

The Department of the Nav

fications subject to certain l

purposes for two combinatio

McCormack Lines Inc to re

cordance with that company s

ernment Invitations to bid 

sued and it is anticipated th

fiscal year 1956

The application of the Oce

Mariner vessels and constru

conversion of said vessels to 

tween the United States wes

principle during the fiscal yea

Board approval was grante

the purchase of four Marin

RoundtheWorld service an

was granted for appropriate r

suant to its contractual replac

Lines Ltd filed an applicat

to aid in the construction of 

tion in its Round theWorld 

going review at the close of 

4
the close of the fiscal year an 

Lines Ltd for reconditioning 

SS President Wilson which w

ential subsidy aid in that coms

The Board authorized furth

Mississippi Shipping Co Inc 

combination vessel for operatio

was not convinced that it would 

another combination vessel into 

The application of Arnold B

the year for the purchase of on

subsidy for conversion of said 

ship to operate between New 

pending at the close of the fisca

During the fiscal year after 

was made in the method of ac

data through the utilization 

nel as well as cost data obtaine

shipbuilders The data devel

the Federal Maritime Board i

of converting four Mariners fo

and two Mariners for the Ocea

of the portion of the cost elig

Other fornzs of constructio

During fiscal year 1955 the 

applications of and entered in

tradein of obsolete tankers fo

tion cost of new tankers T

Trade inof seven T2 tankers 

justment of6875 12 against 

The Texas CoTradein of tw

of 850 57 against constructio

ping CoTradein of live T2 

to adjustment of5669 081 

tankers In the latter case th

porate in the new vessels addi

ance for account of the Gover

sel determined pursuant to co

An application of Gulf Oil 

for allowance of credit for trad

tankers against the constructio

before the Administration at 

The application of Sinclair 

tankers and construction of on

of the fact that the Administ

of the vessels offered for trade

contracting for construction of 

The application of Sea Trai

Marine Act 1936 for mortgage 
ships was placed in an ina

reply to several inquiries fo

The Pan Atlantic Steams

510 Merchant Marine Act 

for allowance of credit aga

coastwise vessels This ap

action could be taken unti

title XI of the act for loan 

seven new vessels upon w

was contingent

Operating differential s

No new operators were aw

tracts during fiscal year 1

there were pending before 

for operating differential s

Line Inc for operation of 

States Marine Corp on its T

Nos 13 29 and 30 all ca

for operation of cargo vesse

During the last fiscal ye

eratingdifferential subsidy 

Lines Inc on trade route N

ships had been operated with

after World War II The 

subsidy contract to America

cargo vessels on trade rout

placement obligations for 

services based partly upo

American President Lines 

expiration of its current s

Board also awarded an incr

Bros Steamship Co Inc 

formed with additional ves

differential subsidy contrac

maximum sailings included 

other services

The Board authorized an 

operating differential subsid

as to effect consolidation of 

tracts In this connection 

on the SS United States p

Act 1936

An application of United 

subsidy covering the propose

11 applicant had contracte

on said trade route by So

pending as of June 30 19

Steamship Line Inc for op

6
No 11 was conditionally appro

executed as of the close of the 

had agreed to sell its cargo ves

vided the pending application 

proved The applications of G

differential subsidy contract fo

to be executed at the same time 

new passengercargo vessels to 

of the Oceanic Steamship Co fo

contract to cover its proposed 

trade route No 27 were pendin

The Board having found i

furtherance of the provisions a

continued payment of operatin

Paula SS Santa Rosa and Go

provided the operators Grace 

Lines Inc fulfill by the earli

place their new replacement shi

Excellent progress continued 

of operating differential subs

period There were 614 rates 

1555 rates applicable to calen

tection and indemnity insuran

respect to 272 rates required fo

89 were calculated and the rem

30 1955 324 508 774net advan

capture had been made This 

count from the date of postwa

through calendar year 1954 A 

tracts is given in appendix A

Construction reserve funds

On June 30 1955 balances i

non subsidized operators totaled 

as of June 30 1954 in 12 constru

Deposits in the funds during 

and withdrawals totaled 35421

of 800 0 for tanker construc

vessels from private interests 

one depositor with respect to wh

put on notice for tax purpose

tion in the amount of an irrevoca

Federal ship mortgage insur

Execution of contracts was eff

gage loan to Sand Products Co

an amount not to exceeed 2500 

of Detroit for reconstruction an
a passenger and automobile

Lakes The owners of thr

outstanding indebtedness to 

750 00 representing insu

Public Law 781 83d Con

gave impetus to private fin

with particular reference to 

the mortgage aid provided f

Act Under this law a num

fiscal year 1955 Four app

gage insurance were receive

37 tankers for charter to th

visions of Public Law 575 

partment to charter up to 15 

acteristics The application

Corp Big Tankers Corp 

Tanker Shipping Corpw

time Administrator but as 

Oceanic Corp had received 

covering eight tankers b

under Title XI was being p

fiscal year

The application of the Oc

insurance aid in the conve

awaiting final determinatio

struction and operating sub

were pending under Title 

with respect to rollonro

trades These applications 

ships Transportation Util

Ferry Inc for one ship a

Under Title XI there were 

andor mortgage insurance 

sels The applications of L

nio Ota Eleuterius shrimp 

close of fiscal year 1955

During fiscal year 1955 

insurance premium receipt

mortgage fund to 50374

Trade routes

Substantial progress was 

essentiality and United St

States foreign trade routes 

b Merchant Marine Act 

Nos 1 2 5 6791012 13 

TriContinent Roundthe

Westbound were complete

8
of additional routes were nea

vey of Great Lakes overseas ro

During fiscal year 1955 re

the substantiality and extent o

petition encountered during 

operators Also a substantia

final reports to the Federal M

and extent of competition e

In this conection ship itinera

lyzed as well as traffic carryin

lines operating outbound and 

There were reviewed and ap

in operations under subsidy co

requests of subsidized lines w

and special permissions

Traffic

Of particular significance i

enactment on August 26 1954 

viding for at least 50percent 

owned commercial vessels in m

to the extent such vessels are 

This measure embraces procu

foreign nations under grants 

vertibility of exchange

In compliance with the prov

gress the Maritime Administ

Import Bank on shipping arra

bank sloan credits and deal

17 or more countries In some 

recipient flag vessels participa

in other cases when warranted 

United States cargo prefe

attention in some foreign na

discrimination This reactio

which have been beneficiaries 

cate that the United States 5

mentfinanced cargoes is gene

from April 1948 through De

foreignaid program administ

istration and its predecessor 

movement of over 159 millio

States vessels carried slight

carried just under two thirds 

vessels have participated in 

and in movements financed by 

financed by the Department o

commodities program of Title 
Ship 

General agency activities

At the start of fiscal year 

general agency contracts and 

ships This activity diminish

general agents by February 

Transportation Service pres

reactivation of 26 ships then 

fiscal year there were 46 app

signed a total of 37 ships fo

Sea Transportation Service A

the Maritime Administration 

recommendations involving i

ence requirements stevedore 

tions to berth augmented cr

heating equipment and prep

phase of the operation

There were 90 ships withd

provisions of the emergency 

completed repair and been re

ships were libeled for forfei

Justice and turned over to the 

and layup in reserve fleets 

owned ships were under custo

end of the fiscal year

Grain storage

During the spring of 1955 

ized during the 1955 grain sto

utilized in 1953 and 1954 brou

authorized for grain storage 

River Astoria and Olympia 

fiscal year 355 ships were i

approximately 81 million bus

loaded At the completion o

mately 93 million bushels of g

representing roughly oneten

wheat stored in the United St

Charters

The need for the operation 

boat charter continued to de

to 26 ships Thirteen of these 

the Alaska trade 1 was for t

in the Philippine interisland 

Law 591 81st Congress an a

10
charters in effect as of June 3

chant Ship Sales Act of 194

was made supplemental to 

nine fully refrigerated ships 

of carrying primarily militar

the continuance of such charte

One Marinertype ship was 

and at the termination of the 

as purchaser Of the three M

pacific service in fiscal year 

ships purchased by the char

struction yard and entered i

delivery since two of the pur

third will continue under ch

is delivered from construction 

The charter of the two Good 

was extended for a period of 1 

Ship custody

At the close of the 1955 fis

reserve fleets During the ye

and 303 were withdrawn Th

the fleets at the close of fiscal y

Astoria Oreg 

Beaumont Tex 

Hudson River N Y 

James RiverVa

The ship preservation pro

limitations of available man

and preservation of ships co

workload of recurring preserv

year A greater percentage 

work with available manpo

sion of preservation person

emergencies

By June 30 1955 the progra

faces of hulls on ships in the 

Hudson River James River 

Olympia fleets In those fleet

or threequarters of the total 

The disruption to the Jam

caused by a severe hurricane 

fied by the end of the fiscal y

to strengthen the moorings a

satisfactorily and completio

31 1955

365062563 
An intensive firefighting tr

purpose of strengthening the 

fleet Refresher training fo

as funds permitted Empha

a reduction in frequency of 

mandays lost

Other activities

Arrangements were made 

a demonstration of transatlan

casting This initial experim

produced such promising res

sons appeared desirable It 

stration will be completed du

imately 16 separate transoc

evaluation

Under the terms of the Mu

Administration was designate

tion Administration in proc

owned or selecting Governme

fer to Korea One privately 

of a second was pending and 

chase of spare parts and est

for the Korean crews were in p

Shipbuil

At the beginning of the fi

constructed under Maritime A

were Marinerclass vessels thr

by the Administration by the 

the three Mariner vessels sold 

accepted for delivery SS G

and the third SS Japan Be

tember 1955

Two refrigerated stores ship

ministration contracts for th

galls Shipbuilding Corp wer

October 1955 Conversion o

attack cargo ship AKA w

ber 1955 During fiscal yea

construction of four oil tanke

for the Department of the Na

12
The ships being constructe

tracts as of June 301955 are g

Type Name

Slb U S S Tulare AKA

Slf I Japan Bean

S4a U 6 8 Rigol AI5f

64a U 6 S Vega AF59

S12a Navy AO149

S128 Navy AO150

S12a Navy AO151

S12a Navy AO152

ST14a I Navy TAK269 

Summaries of all ship const

Conversions

Work under contracts awar

future conversion of the SS U

SS Monterey to troop transpo

A contract for conversion 

American President Lines wa

building Division Baltimore 

scheduled for January 1956

Conversion of the SS Goo

passenger freight carrier on 

ship was sold under the provi

to the Wisconsin Michigan S

In order to meet the require

vessels with minimum speed o

tary operations an extensive 

improve the speed and cargo

ships

As a result of this study 

Liberty ships with propulsion 

1 A contract was awarded t

N Y for conversion of one s

changes to the cargo gear to 

Completion was scheduled f

awarded to Bethlehem Steel 

one ship by installation of two 

ent bow and installation of fine

cargo cranes 3 a contract w

for manufacture of an ope

Award of the conversion inc

early in fiscal year 1956 and 

eral Motors Corp for manuf

turbine propulsion unit Aw

and finer bow will be made earl
In conjunction with this co

gation of the seakeeping ch

progressing on complete ins

the original bow and one with 

performance of these ships w

ing qualities Plans for ro

the Liberty ship being conve

and a method for evaluating t

program will a permit th

the possibility of upgrading t

are available in our reserve f

of these new types of propulsi

and in the development of new 

Building proposals

Invitations to bid were iss

ships for the Department of th

by the Military Sea Transport

Technical developments

In anticipation of the use o

Maritime Administration en

Atomic Energy Commission 

entered into with Gibbs C

versity of Michigan for the p

and economic feasibility of th

chant ships This study wil

In connection with the Pres

a nuclear powered peace sh

types of ships considered s

studies included the adaptati

types of cargo ships cargo p

vessel

The Maritime Administra

participate in the cargo ha

the National Academy of S

the maritime industry have be

In view of the impending b

owned and operated merchan

developed as a basis for est

our future merchant marine 

vessels a bulk carrier a tank

primarily upon consideration

ments competitive conditio

also taken into consideration 

that these requirements do 

of the ships

The Maritime Administra

opment of improved ship de

14
technical staff on advisory co

and industry committees pro

zations These groups are s

lurgy fabrication and desig

shipboard cargohandling im

seakeeping qualities etc 

for many of the progressive 

American merchant marine 

Ship repair

Under the emergency ship 

Law 608 83d Congress 90 

fleets and contracts for rep

end of the fiscal year 64 sh

phases of repairs at a total 

the reserve fleets The inten

in a state of greater readine

During the fiscal year on 

agreement 2036 repair insp

repairs Full condition sur

record their condition when 

ments were made There w

repair summaries submitted 

million of the total of 33 

ineligible One hundred and 

cost of1570 00 for repa

the Maritime Administratio

and reasonableness of costs

Shipping S

Special studies and perio

As in previous years there 

in connection with hearings 

Federal Maritime Board as w

Shipping NATO Among 

sonnel Training Program 

the Maritime Industry and t

The History and Policies 

Flag DryCargo Liberty Sh

istry Among the regular 

those shown in appendixes B 

The Maritime Administra

a report on United States co

report involved voluminous 

as well as economic analyses 

ship utilization
Ship cargo and labor data

The collection and maintena

data and preparation of reg

sales in the United States and 

past year Similar informat

built with construction differ

The collection and process

bound and outbound moveme

drycargo ships in the foreign 

tained in 1955 During the p

were received and processed 

any previous year For the 

ports covering cargoes carried 

United States were processe

and analyses of this trade wi

Data on foreignHag comp

steamship companies operatin

1954 were prepared for use in 

ential subsidy purposes Am

ing cargo tonnages moving 

comprehensive study of the R

Ores and Bulk Minerals in 1

of origin and destination typ

ship A similar report cover

of preparation

Seafaring employment on U

tons and over decreased to an e

1955 reaching the lowest poin

conversion and replacement p

Government materially affecte

with the result that a substant

industry and the decline in s

level off With actual constru

such as the combination vess

tanker construction and othe

ment is likewise expected to 

near future

Labor management relatio

The Conference of America

uary 1954 to discuss and take u

and legislative matters disso

of policy concerning applicati

time problems Collective ba

emphasized increased pensio

changes in working conditio

ployment security plan was n

16
and the National Maritime U

ment payments and other pro

mined by trustees of the pen

Ship Sale

Ship sales

During the year the vessels 

dent Nilson were sold to the 

sums of6346 263 and 63108 

of Public Law 553 83d Co

Marinertype vessels were a

Ltd for operation after con

under the authority of the M

The total sales price for th

A sales contract was enter

the purchase of three Marin

the Merchant Marine Act o

structiondifferential subsidy 

to suit the vessels for the bs

of the vessels from the shipy

of these vessels was5750 00 

During the year one overag

sulting in a return of 3663

Transfers to foreign own

Appendix G lists applica

andor 37 of the Shipping 

foreign ownership andor re

citizens Of the total appr

gross tons such as tugs ba

The remaining 144 ships we

nection with this latter grou

fer the Maritime Adminis

foreign flag ships to other 

terms and conditions as tho

tions Further of the total 

tons and over approved for 

try 11 were approved for tr

tion of new tonnage or rebu

States

During the year 11 appli

States privately owned ships 

i During the early part of fi

tion s policy was amended s

the transfer of a reasonable 
manian Liberian or Hondu

either directly or indirectly 

was rescinded on December 

Liberty ships had been app

Charters to aliens

Eleven charters of United 

were approved by the Mariti

of affreightment and voyage 

from 1 year to 15 years

Marit

United States Merchant M

During the fiscal year ther

men including five LatinAm

States Merchant Marine Cad

year 127 cadet midshipmen s

of instruction All received 

licenses issued by the United 

third assistant engineers of 

bachelor of science degree an

States Naval Reserve and the 

The 12th Congressional Boa

chant Marine Academy was 

lows Senators John M Bu

North Carolina H Alexande

Magnuson Washington ex o

Derounian New York Euge

Bonner North Carolina ex 

Edward J Robeson Jr Virg

consin However the board s

visit to Kings Point will be h

In March 1955 the eighth m

was held at the United States M

was composed of the following 

president Harding College 

manities and social studies M

Vice Adm Wilfrid H Derby 

U S Coast Guard Academy 

ing George Washington Univ

istrative vice president Ha

Sparks president Wabash Co

of Vanderbilt University It 

Seventh Academic Advisory B

individual courses and the co

critical scrutiny to insure imp

18
board noted with approval the 

the establishment of a Federa

manent basis

State maritime schools

The State Maritime Acade

and Hyannis Mass and the 

Schuyler N Y had an avera

in Federal pay status durin

graduated These graduates 

rine officers licenses as third 

bachelor of science degree an

States Naval Reserve and th

addition the four State mar

285 cadets in training who w

pointments and therefore we

the form of subsistence unif

group there were 49 officer

degrees licenses and commi

Maritime Service but are no

States Naval Reserve

Prope

Shipyards

The maintenance and secu

fiscal year at the four Gover

mington N C Richmond 

Wash At the North Caroli

50 acres of open land to the 

has continued Under this le

into use a 3berth margina

warehouse and a 200 0 ga

year the lease with the Diam

tain open land water fronta

struction of concrete piles a

gates being used in the const

loading terminal on the Lo

Certain portions of this ship

Departments of the Army a

At the Richmond shipyard 

the housing of the Contra Co

of its permanent campus for 

tation Service vessels for the 

of a radio transmitter by the 

ing Administration for sto

Administration being reimbu

365062 564
Junior College maintaining t

of the city of Richmond the 

the Chase Aircraft Co Inc 

Machine Shop Inc certain s

an outfitting pier and relate

repair installation

At the Vancouver shipyar

Administration and the Depa

the Air Force permit covering 

some 35 buildings for storage 

The Administration is reimbu

tees have assumed maintenanc

erty within their control

Terminals

Although the major portion 

pied by the Departments of t

from the Administration the

movement of commercial cargo

operating contract supervised 

Hoboken N J terminal cont

of New York Authority Du

construction of a new general 

of the Federal Government

Warehouses

The Maritime Administrat

Governmentowned warehouse

folk Va New Orleans La a

subwarehouse at Vancouver W

These warehouses provide f

equipment required in a nation

vessels in the national defense 

pair and operation of vessels 

fiscal year the warehouse inve

Reserve training stations

Following the declaration t

as excess to the needs of the 

portion of the Sheepshead Bay 

approximately 35 acres of la

thereon a revokable permit wa

Force for the use of the balan

Force personnel processing ce

Port development

In cooperation with the De

neers for Rivers and Harbors 

20
Port Series volumes Port Se

Series No 6 The Port of Al

Savannah and Port Series 

Port Series No 10 The Por

Material control invento

There were 198 ships and 

inventory certificates for co

amount of 5933 as account

able Certificates of overage

amount of 391 014 as accou

payable

At the beginning of the ye

for determination as to dispo

reported from offsite location

gated and processed for util

there remained 201 18 at th

Surplus property other th

the books having a reported 

posed of by the Maritime A

transfers and sales in foreign 

United States dollars and fo

Ten sunken ships which wer

a return of6350 The dom

amounted to 5413 020of wh

1

of 3009 9 was sold pro

2136 was transferred t

having an acquisition value o

cation and welfare purposes 

tion cost of 39678 was aba

ceived from domestic sales 

except sunken ships amoun

Purchasing

Materials and equipment re

emergency repair grogram a

sels at Beaumont Tex and M

during fiscal year 1955 Pu

supplies equipment and serv

and operation of the reserve 

training vessels and for the o

Records ncanagement

A volume of 18684 cubic f

1483 file cabinets having a va

12000 square feet of space 

records totaled more than 10
Administr

Program and defense plan

A revision of earlier calcu

being undertaken and a balan

was being developed so that t

corporated into advanced de

marine qualitatively superio

avoid the peaks and valleys t

building industry and is aime

force adequate in size for ne

mobilization

Based on latest military gui

mobilization shipbuilding pro

the Maritime Administration 

Defense agreement covering th

agent to be known as the Coo

The proposed coordinator wil

in time of full mobilization

Considerable planning is c

field surveys already complet

tion of new mobilization perio

yards and reactivation of res

of the required facility com

machinery as well as the rea

The Maritime Administrati

to the Office of Defense Mobili

for accelerated tax amortizati

the Internal Revenue Code 

totaling 8115 000

The Administration also jo

to sponsor a cargo handling r

search Council First reports 

a detailed study of costs of a 

the United States to a destina

The sixth meeting of the P

NATO met in Washington in 

Transportation of the Depart

of the meeting The Deputy 

as spokesman for the United 

Maritime Administration staff 

various capacities The Mari

as United States representat

Shipping

The Maritime Administra

MaradNavy Planning Comm

terim Report which when c

interim reports covering the 

PA
required as a defense nucleus 

of the national defense reserve 

Personnel

Louis S Rothschild forme

Board and Maritime Adminis

of Commerce for Transportati

G Morse of California Gener

tion was appointed member of 

nated Chairman on March 16 

the former Chairman which 

23 1954 Mr G Joseph Mine

member of the Federal Maritim

1958 Effective October 29 1

ber resigned and Mr Ben H 

member of the Board effective 

the 4year term expiring June 

Messrs Minetti and Guill were 

by the President on January 2

For the first time since the 

number of personnel on the ro

mained at a comparatively sta

1955 Total employment in t

on June 30 1955 Stabilizati

unnecessary for the Maritime 

cant reduction in force at the 

1955 for the first time since the 

factor enabled the Administra

make considerable improveme

and effect better utilization of 

Organization and methods

During the fiscal year in a

administration of its work pr

effected as were necessary reo

tions The principal organiza

ment of the Office of Governme

ping Authority as separate org

of the Office of Ship Constru

within the Office of the Chairm

power Officer with responsibil

manpower requirements for sh

oping plans for manning new ty

ing the execution of both the F

State maritime schools

A continuing program was c

agement activities and the str

cedures Reviews were made 
plicability to the Maritime A

tained in all hoover Comm

on all proposals noted in int

Internal audits

submitted During fiscal year 1955 in

is 

and Administration six of theThese majo

prove a protective the effectivenes andor construc

cial projects were undertak

importance was commence 

formed and the iuiem t

ingdiiroo tai subidy con

improved accounting and au

Security and investigatio

The security program wit

the Maritime Administratio

provisions of Executive Ord

advice was given on the sec

ownership of vessels foreign 

of the Maritime Administra

of mortgaged vessels

During the year 10 invest

certain purchasers of ships 

1946 as amended qualified a

ship sales investigations we

scrapping contracts and m

tory investigations were co

false billings terminal ope

As a result of these and pr

realized 10000 in fines12

Government and 3068 907 

Accounting

A revised accounting syst

the Federal Maritime Boar

eral of the United States as 

requirements Complete a

represent the financial posi

24
the results of its operations in 

practices were being prepared o

On June 30 1955 there rema

Administration agents with res

reached as to final settlement o

Of the 48 agents under Nationa

inating in 1951 27have redelive

of inactive agents were in the p

other than with respect to insu

any length of time

Auditing

The principal audit workloa

subsidy agreements bareboat 

contracts Audits under ope

continued to receive top priorit

of annual accountings filed by 

of the items of expense present

sidized operators Progress i

agreements made additional q

subsidy audits which should re

sidy audits during the fiscal yea

contracts principally ship rep

were being audited on a current 

Eleven wartime constructio

Shipyard Inc were conclude

agreement The total settleme

to 559 420 758 Final settlem

Bethlehem Alameda Shipyard 

mailed to the contractor for sig

During fiscal year 1955 add

258 and 252 audits were comp

at Tune 30 1955 A total of287

recapture clue the Government 

At the beginning of fiscal 

reserve funds of subsidized 

capital reserve fund and 85549

the end of the year the annou

118 381 126in the capital rese

reserve fund as shown in appe

In order to aid subsidized o

funds for new construction t

ized to permit the operators to 

on a taxdeferred basis from p

Applications for making volu

were approved for seven opera

from calendar year 1954 free 

two operators in the total amou
Insurance

Public Law 209 84th Co

the authority for the war 

1960 Twenty three contra

writing agents for insuranc

and on the condition that 

commercial market upon 

mined by the Secretary of 

During the fiscal year 97 

tion and indemnity binder

were issued As of June 

lows 882 war risk hull 79

733 war risk second seam

had been received and a t

expenses since inception of 

Two of three Marinertyp

in the United States and rai

Line were covered by exten

Premiums totaling 79281 

Upon launching of the last 

by commercial underwriter

A new contract to furnish 

nity risks was awarded to t

pany of Los Angeles Ca

Administration general ag

Service

The Maritime Administr

continued to assume hull 

men s insurance on Gover

insurance on the Marinerty

received amounted to 1891

During the fiscal year en

from underwriters under th

wartime

1

hull and protectio

550 00 The total recov

resenting 13525 000 from 

protection and indemnity u

disposed of the last case und

of the reserve subject to rec

The Maritime Administra

legal liability insurance pro

partment of the Army and a 

be obtained in the domestic m

rates As of June 30 1955 

effect on 37 Department of t

In accordance with its in

Maritime Administration a

thereof generally on an ann

26
mercial markets by mortgagors 

in the following amounts

Kind of insurance 

Accounts receivable

Of the balance of accounts 

approximately 21 million on

active collection efforts are re

is made up of additional cha

settlement of charter accountin

ment of Justice accrued const

tion of ship construction ma

status and accounts on the b

general agents The fact that 

totaling approximately 1100

percent was outstanding at the 

are being promptly collected

Claims

The number of unlitigated 

ernment nearly all of which 

former United States Maritim

ministration was reduced du

with a claimed vahle of 105

16822 773 In addition the

Of Justice for litigation on wh

pendix I shows the claims on 

under the Suits in Admiralty 

Leg

In addition to the specifi

services and opinions were fu

the Maritime Administrator 

various operating and admin

tion

activities

with the legal aspects or 

Legislation

Most of the legislative pro

upon recommendations mad

36506565
Policy by the Under Se

submitted to Congress May 

the following matters Pro

posits of earnings from non

age replacement of ships p

avoid block obsolescence to 

Libertys prototypes and e

of research and experiment 

on shore and on ship sale 

proceeds to be placed in a 

completion of 10 year recap

and extension of operating 

posals were To provide fo

requirements regarding ves

law protection for property 

for seamen for outstanding 

service and gallant action by 

Those relating to test op

and experiment in cargo ha

formance reports Federal 

decorations for seamen afte

submitted to the Congress by 

relating to 10year recaptur

awaits action in the Senate

Recommendations were m

Marine War Risk Insurance 

zens of vessels under charte

enacted into law as Public La

Joint resolutions providin

SS Monterey were enacted 

Law 260 84th Congress

The bill to establish the M

basis passed the House and is 

sideration in the next session 

Under consideration at th

proposals relating to openin

domestic trade study tramp 

eign trade operations an

problems

Contracts

A voluminous number of c

ments were drafted and execu

sidy contracts a contract fo

President Lines Ltd and a 

ment with the same company 

bareboat charters to Moore 

Neighbor ships and to Com

Navigation Co for vessels op

28
contracts for conversion of Lib

and diesel engines constructio

partment for the conversion of 

and the construction of four t

of 9 obsolete tankers and the c

trade inandbuild program

The ship mortgage provision

ing of mortgage and loan in

struction and reconditioning w

Law 781 83d Congress and r

plement this law The Marit

the Interstate Commerce Com

certain towing companies wh

competitive bids for towage s

Government in movement of 

risk policy was prepared and 

hull coverage on mortgaged a

Litigation

During the year there was 

lision cases This case concer

Administration Vessel J Pbwl

tanker J H Senior in a convo

the loss of both vessels their 

sels in convoy attempting to 

flames collided The total am

States was 24 million and th

cargoes owned by the United 

15 million Most of the dam

of liability proceedings and th

between the allied governmen

The J Pinckney Ilenderson

by the payment of 500 0 to 

death and personal injury cl

ministration bearing onehalf 

bearing the other onehalf

The United States Supreme 

Corp 1955 A Al C 899 he

relieving the tug from liability 

by the negligence of the tug 

ministration employs privately 

ships the decision is of great 

against tags for damage to ves

of this type

The most important catego

volving claims for refunds of 

built vessels for the offshore 

20 cases had been filed involv

the litigants claim that charte
to the provisions of the Me

mated that ultimately there 

40 million to 50 million o

During the past year f

cases in this category On

Southern District of New Y

American Eastern Corpor

barred The other decisio

in Sword Line case on the 

finally settled by an agreem

pending an appeal to the C

In another category of ch

decided in favor of the Go

Eastern Line Inc v Chairm

the United States Court of A

the decision of the Tax C

effect that the socalled Ice

The overtimeonovertim

Operating Co Inc and Ad

in litigation since 1945 and 

500 0 came to an end on 

reviews by payment of jud

were favorable to the defen

the United States Governm

mated between one hundred 

dollars which it had under 

Shipping Administration s

quently many of the 300 ori

An important group of ne

that foreign purchasers of 

citizen purchasers under the 

disputes in five pending case

requirements and the comp

tures As 113 vessels wer

of foreign purchasers might 

Also in the category of sh

credits for prior sales unde

tacked in six suits Three o

that desirable features char

concern claims that the G

charter hire One of those 

trative settlement

Ten 1946 act cases which 

of the price of C3 vesse

aggregating about320 237 

desirable features refunds a

decision Four such desirab

Another large category is th

30
work on C2 vessels allegedly 

eight companies in an amount e

The United States Supreme 

eastern Oil Florida Inc Paco 

against the Government As 

engaged in administratively se

66 separate suits for slotting a

pairs as the basis for dismiss

proofing suits involving abou

such cases having been settled 

the adverse decision of the Cou

There are pending about 50 s

ing just compensation claims o

about 20 involving about 5 mi

rate of bareboat hire Both pa

that issue have requested the U

the decision of the Court of Cla

Regulat

Considerable apprehension w

fiscal year since freight rates 

continued to increase Howe

charter market showed a sudd

to move rapidly upward Th

offset increased operating costs 

15 percent This was a worldw

the increases in conference fre

trade to assure that these inc

burden upon the conduct of tra

The plans for development o

lated ports and carriers to grea

of carriers with services oper

the Great Lakes trades Po

been urging railroads and tru

establishment of export and im

ments via Great Lakes ports 

these interests and has offere

the Board sjurisdiction

Various dualrate cases rema

leaving existing rate wars and 

Even the bulge in the freight 

could not offset the dangers 

the Japan Atlantic and Japan

showed some tendency to level 

tinental conference introduced 

based on the measure of the ra
The GulfMediterranean an

difficulties and were threaten

year closed

Conference and other ag

The Board approved 143 

lation of conference or other 

Among the approved agree

ing the trade from Red Sea 

ports a joint service agreem

pooling agreement in the 

Cuba which was entered int

number of conferences mod

to assure that brokerage is 

service rendered and under p

Two formal investigations 

motion one into the legali

Coast European Conference 

mining whether certain carri

engaging in unlawful rebate 

Mediterranean Ports Confe

in expelling one of these ca

Freight rates foreign

A total of 26684 rate fili

the foreign trade of the U

sented an increase of more 

filings Examinations were 

tions and classifications whic

for potentially discriminator

tariff practices There were 

10 to 15 percent in most tra

cited in support thereof

Freight rates United St

Freight and passengers 

carriers filed tariffs covering 

and delivery express servic

Rico and 16 covering rates 

the movement of household 

motor carriers between poin

tories Upon showings of g

permission applications to 

than statutory notice

Rates between Atlantic G

increased 6 percent The ra

and Gulf ports was increase

operating costs were cited a

32
A review of operating resu

Alaskan trade showed that the 7 

in fiscal year 1954 was fully 

its investigation into these ra

Two investigations on the Bs

of certain published rates of 

resulting in a finding that the 

14 and 16 of the Shipping A

Act 1933

Terminals

A total of 1771 tariff schedu

formal rulings of the Board 

Eightynine informal complain

rage and terminal charges wer

were against rates for truck loa

in the port of New York are

related practices established un

by the Board were under form

year

Freight forwarders

Certificates of registration w

certificates of 104 registrants 

registrants holding certificates 

ing the year 15 new registrati

527 under General Order 70 

furnish information concernin

been reviewed for compliance 

informal complaints relative t

dled A formal investigation 

was initiated on the Board s 

Proceedings Bef

Final decisions of the Boa

Docket No 736StoNdon Port 

poration et al This proceeding co

to establish rates from Stockton 

Upon motion of the parties the B

August 12 1954

Docket No 74131isclassificatiwa 

finding that the respondent falsel

transportation by water therefor a

otherwise be applicable the entir

warded to the Department of Just

Docket No 745Tollage Charge

investigate increase of the wharf
was denied by the Board as the 

and neither the proposed increa

charge at this port would here

tunity for interested parties to s

order dated July 21 1954

Docket No 747Increased Rat

This investigation of certain pro

by the Board on protests to the 

and otherwise unlawful and tha

The rates were suspended pend

dismiss the proceeding concurre

revoked and the proceeding w

March 4 1955

Docket No 749 Freight Rat

stituted by the Board on its o

should be suspended and inve

having been no protests to the 

filed motion to dismiss the proc

the Board by order of March 4 

Docket No 754Gulf Shipside

Ltd at al and Docket No 75

k Jac Brocklebank Ltd Com

sorbing certain costs of loadin

certain warehouse and refusing 

at and loaded from complainas

Act 1916 Complainant having 

believed on advice received from 

be discontinued the Board dis

16 1954

Docket No 756The Rice M

Cuban Outports Conference et a

is detrimental to commerce of 

Shipping Act 1916 Complaina

matter complained of had been 

proceeding by order of January 

Docket No 759AngloCanadi

Company Ltd Complaint alleg

lower by fixed differential than 

indulged in other unfair practic

sufficiently high to induce them 

lation of sections 16 and 17 Sh

and quoting by a carrier of rat

competing carriers is not a per 

1916 as amended nor is the pay

without

motion to

more

dismiss

a violation

the complaint

of th

accompanying petition for inve

and issuance of rules in respec

Docket No 760Naniera Garc

United Fruit Co Complaint al

and 17 Shipping Act 1916 C

the complaint on the ground th

7997 together with the contemp

conference the issues in the pro

dated December 30 1954 dism

Docket No 761The Nationa

lantic Westbound Freight Confe

on glass buttons established by 

criminatory as between shippers 

tion of sections 16 and 17 Shipp

34
that the above matter had been sa

of May 5 1955 dismissed the com

Docket No 762The City of San 

et al Complaint alleged that certa

tion

motion

of

to

sections

dismiss

14

the

15

complaint

16 17 and

order dated October 20 1954

Docket No 770 Morton Birnbau

plainant alleged that respondent s

ticket from the United States to Ja

sections 16 and 17 Shipping Act 

that the complaint be withdrawn 

1955 granted this request

Docket No 517 Sub 1Ame

Botcnsion of Existing Authority T

No 17 Service C2 and Docket N

Application for OperatingDifferent

The BoardMaritime Administrato

to be operated on trade route No 

American President Lines Ltd w

addition to the existing service or s

between the United States and Am

to vessels to be operated on trade 

proposed by American President L

tions be to give undue advantage 

of the United States in the operati

or lines 3 section 603 c Me

a bar to an award of subsidy to A

to vessels to be operated on trade 

American President Lines Ltd or 

fide operation as a common carri

or coastwise trade in 19 over th

for which American President Line

ate in the westbound intercoastal l

C2 5 the operation by Ame

Service C2 vessels in the westb

carriage of reefer cargoes result 

corporations operating exclusively 

the operation by American Preside

vessels in the eastbound intercoasta

to persons firms or corporations op

coastal service except to the exten

bound from Los Angeles 7 ves

Ltd in Freight Service C tra

westbound S the freight service 

Ltd permitted to serve faults and 

Freight Service C2 vessels of A

call eastbound at San Francisco 

coastal cargo at such ports and 

American President Lines Ltd a

intercoastal service from the port o

Upon consideration of a petitio

BoardMarfthne Administrator by 

previous findings and denied the pe

Docket No 527 Sub 1 Inv

DfcCornaartcSuoedishAmerican Sail

2Investigation of Agreement No 

Agreements found to create relatio

but which do tend to diminish com
Docket No 527 Sub 4In

A V fooling Agreement foo

Inc and Chilean Line C S A 

eliminate or diminish competitio

Docket No 544American E

Number of Subsidized Voyages o

plicant found to be an existing o

ing of section 605 c Merchan

find that permitting an increase 

on trade routes Nos 10 and 18 w

dicial as between citizens of th

competitive services routes or 

1936 does not interpose a bar to 

of applicant ssubsidized setting

Docket NoS45Grace Line 

dcr Section 804 Merchant Mari

cause shown justifying continu

Marine Act 1936 to permit aff

passengers in this hemisphere 

Johnson Line

Docket NoS46Grace Line 

Increased Sailings on Trade Ro

Mexico Central America and S

accordance with section 13 d 

the initial decision of the exam

December 30 1954 Findings of 

operating an existing service bet

the west coasts of Mexico and 

coast of Colombia and the Gu

service proposed to be operated b

not to be in addition to its exist

rine Act 1936 found not to int

of an operatingdifferential subs

Docket No 546 Sub 1Gra

Trade Route No 35 U S Pacif

heard on motion of public coun

and the proceeding was dismisse

Docket No 50Pacific Far 

a Merchant Marine Act 1936 

Application for such permission 

eral agent for Coastwise Line 

turning in ballast from the Orie

petition and would be prejudic

Marine Act of 1936

Docket No 553Grace Line 

of the Subsidized Service and In

Freight Vessels on Line C Servi

Register with a return date of Ja

having received no such reques

the proceeding was closed The 

Docket No 54Pacific Tran

mission Under Section 805 a 

time Administrator in his repor

requested which permitted the 

Co or its affiliate Pacific Atlan

tons of newsprint at Port Ange

Docket No M41Annical R

Owned War Built DryCargo Ve

36
In accordance with section 5 e 

annual review was made of the ba

built drycargo vessels recommend

during the period from June 30 19

of evidence considered by the Boar

that subject to further review at 

President Lines Ltd and Pacific F

fying the continuance of the charte

by the Board

Docket No M62Haavavian Stea

boat Charter the SS LaGuardia 

of the SS LaGuardia a Governmen

riage of passengers and cargo bet

T H The Board recommended the 

service under consideration was in 

senger service was inadequate to me

that the present cargo service was 

service as proposed by applicant a

sels were not available for charter b

and at reasonable rates for use in su

Docket No M63Coastwise Lin

ernment Owned WarBuilt DryCa

AlaskalJritish Columbia Service 

lowing findings a that the servic

such service was not adequately s

flag vessels were not available for 

conditions and at reasonable rates 

Recommended Decisions o

Docket No 723City of Portla

of Public Docks and The Port o

AmericanHawaiian Steamship Co 

Westbound Conference and practic

Docket No 72The Secretary o

Atlantic Continental Freight Conf

Hatter of the Statement of the Jlcln

Freight Conference Filed Under Ge

noncontract rates proposed to be put 

Freight Conference would not be u

carriers shippers exporters impo

the United States and their foreign 

ment of the commerce of the United 

Shipping Act 1916 A memorandu

carriers to establish the proposed 

section 15 of the act Before such 

out

Docket No 730In the Matter o

Freight Conference Filed Under Ge

and Gulf Freight Conference propo

for transportation of commodities f

and Gulf ports of the United Stale

Differential of 95 percent betwee

found not arbitrary unreasonable 

proposed rate system found not un

unfair or detrimental to the comm

system found not to cause irreparabl

These decisions were subject to revie

Administrator
Docket No 743In the Matte

ference of Japan Filed Under G

rate system in the transportat

Porea and Okinawa to Hawaii 

Canada found not justified un

Act 1916 and accordingly app

should be denied

Docket No 76GPonce Cem

Rate Cargo N O S Proposed 

glades Fla to Ponce P R n

requirements

Docket No 768 Alleged Prac

Fabre Line and of Gulf Me

Labre Line found to have viola

with shipments of certain comm

and South Atlantic ports to Me

desist order recommended 2 

in expelling Fabre Line from m

unlawful 3 rules and regu

1920 recommended and 4 ch

Co and allegations under secti

sustained

Docket No 769Ponce Ceme

Ponce Cement Corp found to b

Rico to Florida and a proper ta

Publication of a rate on pro

which includes the return of t

section 2 Intercoastal Shipping 

practice under section 4 thereo

rate on propane gas in tanks f

return of the empty tanks to F

16 Shipping Act 1916 Suspe

vided by the Board sTariff Cir

Docket No S38Isbrandts

Isbrandtsen Co Inc found to 

employing vessels registered un

Nos 7 8 9 and 18 from and to 

Rag vessels operated by Isbran

ships not employed in common 

Decisions by examiners in n

andor Maritime Administrato

are Dockets Nos 741 S27 Su

S50 M62 and M63

Pending proceedings

Docket No 703 Trans Pacif

tic Coast Freight Conference 

as an investigation into utiliza

Freight Conference of Japan a

these respondents notified the B

noncontract rate system

Docket No 720 Intercoa8ta

west Dfarine Terminal Associ

the ship in connection with lu

unreasonable practice in viola

anddesist order entered and 

reparation

38
Docket No 726 Isbrandtsen Co I

Complaint alleged that respondents 

Gulf ports of the United States to po

rate system are in violation of the S

Docket No 732D Kempner v L

Mediterranean Ports Conference 

Steamship Co Inc at at Far Ba

Cotton Co v Lykes Bros Steamsh

Docket No 735Texa8 Cotton Indus

Proceedings involved the lawfulness 

tract rate system

Docket No 738Rates Charges 

ment of Rabbitskins From Australi

cerning transportation of rabbitskins 

than applicable rates or charges ap

ping Act 1916

Docket No 742 Issuance of Ru

tion for investigation by Board for p

diction to regulate practice of load

York if so to prescribe rules and r

Docket No 744 Terminal Rate 

tion filed by Northwest Marine Te

prove a rate making formula for cal

Docket No 746Willy Bruns v 

Complaint alleging that respondents 

European Conference is unlawful in 

Docket No 746 Sub 1Campag

Complaint alleging that respondent 

to operate as a common carrier and 

of carrier and importer or consig

grant and obtain transportation o

European ports at rates or charges 

applicable by means of offering and 

rebates to exporters and importers 

Shipping Act 1916

Docket No 752 Inthe Matter of 

West Coast of Soutlb America Conf

ence re F 0 B Shi pmenM Petitio

to order conferences to cease and de

exporters to Colombia not to ship 

porters in Colombia designate that lin

Docket No 7Palantic Steams

Association and Shaffer Terminals 

under the Shipping Act 1916 of ce

Wash against an intercoastal carrie

Docket No 755 Inthe hatter of 

Bureau 11onl Kona Conference in 

of Isbrandtsen Co Inc requesting B

from coercing and forcing by thre

ship goods by Isbrandtsen when f 

line as the carrier

Docket No 758American Union 

Conferences Complaint alleged th

brokerage on shipments of locomot

Shipping Act 1916 and the antitrust 

Docket No 759Anglo Canadian S

Company Ltd Complainants mem

allege that respondent a Japanese 

conference rates and pays excessiv
conference to lower its rates w

ent srates in violation of sectio

Docket No 763 Aluminum P

Motor Transport Inc Compla

respondent for transportation of 

that the rates charged were an

in violation of sections 14 16 a

coastal Shipping Act 1933 and 

of 15000

Docket No 764 Mitsui Stea

Ltd at al Complainant a Ja

of Pacific Coast European Con

sections 14 3 15 16 and 17 S

discriminatory and illegal prac

purchased in the United States 

clusivepatronage dualrate con

over vessels of complainant an

on conference vessels and that s

to complainant

Docket No 765 Inve8tigatio

ments of Ocean Freight Forward

instituted on the Board sown m

tion 19 Merchant Marine Act 

and the Board sRules of Pract

of practices operations actions 

and related activities of ocean f

Docket No 767 Agreement 

Coast Faropean Conference Ag

tuted on the Board sown motio

Act 1916 and section 9 Admin

to show cause at a hearing why 

fied or canceled The rule invol

Lines must refuse to pay broke

brokerage from a nonconferenc

cluded from the Conference slis

Docket No 771 Banana Dis

alleges that respondent a comm

portation of bananas from Ecu

ference Agreement No 3302 s

the Sherman Antitrust Act

Docket No 772United States 

American Union Transport Inc 

ent American Union Transpo

Board that it is a common car

with the Board Freight Tariff 

resulted in loss of cargo to com

of sections 2 3 and 4 Intercoa

Act 1916 3 that AUT sloa

to name docks or terminals co

ants injury in violation of sec

14 and 16 Shipping Act 1916 

portation Inc TMT are ope

tion 15 of said Shipping Act

Docket No 773 American Po

President Lines Ltd of al Co

ply contract rates provided in 

of sections 16 17 and 18 Shippi

Docket No 774Compagnie 

I2jn N V et al Complainant

40
agreement not approved by the Boa

have subjected complainants to un

said act by evading proper regulatio

by entering into dual rate exclusive 

Docket No 775 Arthur Schwart

that it has demanded that respond

frigerated space for the transportat

coast of the United States that th

the ground that all refrigerated sp

for a long period of time to three 

complainant that such contracts co

in the ownership or use of respons

failed to disclose in its application 

respondent has violated sections 14 

I and 2 Sherman Antitrust Act Docket No 776Lopez Trucking 

779Data d Russell Sales Co v W

being proposed unlawful revisionin violation of its FMBof Tariff sectio

that

All loading of lumber truck

supplied or designated by W

and control except for the m

tity to be placed on the vehic

Docket No 777Truck Loading 

York Upon the protests of expo

stituted a proceeding of inquiry in

rules and regulations of certain t

loading of waterborne cargo at Ne

the parties to the tariff Docket No 778Campagnie de 

Ltd et al Complainant alleges t

under an agreement not approved 

respondents are subjecting compla

16 of said act by evading proper r

service advantage of a joint servi

Docket No 780U S Trucking 

of al Complaint filed by four tru

certain terminal operators for th

at New York are in violation of se

Docket No S27 Sub 3Inv

Colombian Coffee Pooling Agree

into the question of whether the 

sidized United Statesflag lines 

minish competition among their s

consider such eliminalion or dimin

of operating differential subsidy 

signatory to such agreements Docket No S35Application 

Waiver Under Section Sol Merc

lantic for permission of its affiliat

operators in event it is subsidized 

Docket M S51Application 

sion To Call at All U S Ports N

Service This is a proceeding t

1936 involving application of A

United States ports north of Ca
Docket No S52Application 

hearing under sections 805 a 

application of American Presid

sidized transpacific vessels at H

Docket No S55Applicatio

hearing under section 805 c M

Pacific Far East Line Inc for 

vessels at Hawaii

Docket No S56States Stea

tial Subsidy Under Title VI of M

Far East and Pacific North nestF

S

Other pending cases Docket

38 are referred to above und

Internation

The Maritime Administrat

of the Intergovernmental M

agreed with the position of 

proposal presented to the T

sion of the United Nations a

that the convention be amend

tion to maritime technical pro

ratified the convention thre

the convention is under con

other countries The majori

Commission agreed that an a

delay the establishment of th

The Maritime Administra

tion for Philippine Trade Ne

of certain exchange regulatio

ment which in effect discri

As a result of these negotiat

ment was revised and an 

Governments which becomes 

remedy for this situation

The Maritime Administrati

State ill preparation of the U

with maritime transportation 

extraordinary meeting of the 

Council meeting in Rio de Ja

The Maritime Administrat

Department of State in pro

trainees in the maritime field 

agencies and industry to prov

eign trainees who are responsi

within their respective nation

42
The Maritime Administratio

United States representatives a

for European Economic Coope

of the United States Governme

the Maritime Transport Comm

time Administration continued 

State in unilateral negotiations 

of actions deemed to be discr

ping Some progress has bee

has canceled the discriminato

using Brazilian vessels and h

ileges for Brazilianflag vesse
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FEDERAL MARITIME BO

DEPART

Statement of OPerations for 

CURRENT YEAR OPERATIONS

Operating activities 

Revenues and reimbursements 

Operations of National Shippin

Chartering harter of vessels to others 

Maps of National Shipping A

Operation of marine termina

Maintenance 

of reserve fleet v

Training of alaritimo Servlco o

Operation of warehouse

Maintenance of reserve shipyar

Total revenues and reimburs

Costs and expenses

Operations of National Shippin

Chartering of vessels to others 

tions of National Shipping A

Operation of marine terminals 

Maintenance

Training of

reserve fleet ves

Training of Maritime service of

Operation of warehouses 

Maintenance of reserve shfpyard

Total costs and expenses 

Net costs and expenses income

Operations of National Shippin

Chartering of vessels to others 

tions of National Shipping Au

Operation of marine terminals 

Maintenance of reserve fleet v

Training of Maritime Service of

Operation of warehouses 

Maintenance of reserve shipyard

Total net costs and expenses 

Direct subsidies and cost of national def

Estimated operatingdifferential sub

Adjustment of estimated recapturnb

Cast o ofnoationalde ensedeffeateiefeures 

Excess of recorded cost of vessels sold ove

Administrative abandoned 

expensesamount alloca

Cost of repairing reserve Beet vesse

Other income and adjustments incom

Interest earned on notes and accoun

Inventory and other property adjus

Loss on sale of materials and supplie

Loss on sale of fixed assets Other tha

Net income from sale of capital stoc

Net income from War Risk Insuranc

Miscellaneous 

Net east of current year operations 

ADJUSTMENTS APPLICABLE TO PRIOR YEAR

Net charges arising from adjustments an

World War II activities 

Participation in profits of World War II 

NET COST OF OPERATIONS note 4 

Includes reconstruction differential subsid

The notes to financial state

46
FEDERAL MARITIME BOARD 

DEPARTME

Statement of Equity of the United 

June 30 

BALANCE BEnninuiO Or YEAR 

forterminal leave expenses 

Recorded value of 14 vessels transferred fr

Navy in fiscal year 1955 and 1 vessel in fis

Domestic war cost of 6 vessels repossessed un

18064 218 from funds lm aoutstanding 

Expenditures from funds appropriated too S

liquidation of obligations incurred agains

Administration Prior

U

dust A ju ant received from

January 1

S

1

Gove

Ament of cost of vesselsi transferred t t

in Prior years 

Expenditures from Payment of Certified C

Treasury 

Leasehold impro ato Wilmington 

North Carolinaa State Ports Authority ne

Leahold se improvements Hoboken Ter

York Authority net

Proceedss frorom sale vessels declared surplurp 

Army 

Contributions received toward the const

United States Merchant Marine Academy 

REDUCTIONS

Net Cast of operations exhibit 2

Payments into the General Fund of the 

10 million of National Shipping Autho

turned in fiscal year 1955 

Reserve established to reduce the calue of v

inal complement of outfitting items an

moved during prior years 

Recorded cost of portion of Sheepshead Ba

Station transferred to the Department o

General Services Administration 57820 

Recorded cost of Hog Island Pa termina

city of Philadelphia 

Materials and sup lies124 050 and equ

to State and U9 Government agencies

Recorded cast of San Mateo Calif Trai

Department of Health Education and W

Recorded Cost of Philadelphia Pa Marine 

Department of the Army 

Lepsad appropriations transferred to th

Claims account of U S Treasury less 15

food in1956 and 13049 in 19M refunded 

Inventories of materials and supplies used in 

for U S Department of Agriculture Pro

ministration exclusive of expenditures 

4109 093 in 1954 which were reimburs

Net proceeds from sales of excess materials 

deposited by theUSTreasury in their o

Miscellaneous 

BALANCE CLOSE OFYEAR 
FEDERAL MARITIME BO

DEPAR

Statement of Sources and 

r

Proceeds

mma appnfrtacea

from the sale

Dy

of

sea

vessels

uongress

owne

Funds provided by the Secretary of 

against funds of the War Shipping A

Funds provided from the Payment o

Funds provided from the transfer of ac

Proceeds from the sale of fixed assets o

Contributions received for constructio

Decrease In working capital timing th

Total funds provided 

APPLICATION

Net cost of operations per Statement 

Less items considered In net cost 

Loss on sale of vessels and ves

Loss on sale of feed assets oth

Payments into the General Funds of 

Expenditures for vessels owned an it u

Expenditures for Land and Site De

construction fn Progres

Materials and supplies transferred to 

Lapsed appropriations transferred to P

Treasury less 100 574 subject to ef

Inventories of materials and supplies 

partment oL Agriculture Production 

it res of 5191 288 which were re

Net proceeds from sales of excess mate

USTreasurym then own genera

ReNnd of balance of 1954 allocation fr

cadets 

Total funds applied 

Summary of 

48

AssETs Cah 

Notes and mortgages receivable 

Accounts receivable and agents advan

Materials and supplies 

Other assets 

Net unterminated voyage expense re

Total 

LIARILITIEs Accounts payable and other liabil

Reserves 

Total 

Working Capital 

Decrease In working capital 

48
FEDERAL MARITIME BOARD 

Domestic 

Foreign 

Total 

3 Inventories of materials and supplies are valu

cost to the Administration No consideration 

establishing these prices 4 In accordance with generally accepted ac

financial statements do not include an allowanc

With respect to sales of fixed assets this practice 

current year operations the recorded net costs 

depreciation been recognized in the accounts I

31 vessels with a recorded value of78024 991 w

but had not yet been included in their records 

that these vessels have been taken up to their i e

Maritime Administration accounts At June 3

of59422 765 5 The Cornhusker Alariner ran aground in Kor

all were smut mr scrap Ine romi 

and Live remaining va ue of the vesse

1 n nirr arlhubtc na

amou

was

DEPARTMEN

Notes to Financial StatJu
W

1

Ov

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HC6

WO

50

0

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b y rain

b

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ain 

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FEDERAL MARITIME BO

DEPAR

Statement of Operations of Na

Jun

SHIPPING OPERATIONS

Vessels operated by general agents

Terminated

Revenue

voyage results termin

Expe

Gross profit from vessel ope

Chartering of vessels to others

Total gross income from shipping o

NONSHIPPING OPERATIONS

Vessel reactivation costs

Vessel deactivation Costs expense of re

Miscellaneous expenses

LessNonshipping Income and reimbu

deactivation costs

Net income from norlshipping opera

ADMINISTRATIVE EAPENSES

NET INCOME FROM OPERATIONS

52
FEDERAL MARITIME BOARD 

DEPARTMEN

Statement of Operations of Nation

June 

internat

Coopera

TA 

SHIPPING OPERATIONS

Revenues 397 43 013 19

0853

Exponsos 331 004 520 172 02

Gross Income from

shipping opera

those 66 432 493 20 06

NONSHIPPINf OPERA

TIONS Vessel reactivation

costs 102 083 707 7

2006

Vessel deactivation

costs expense of

restoring vessels to

the reserve fleet 1632 233 794

1

Miscellaneous ex

pauses 1291 89 2

0

119 507 839 86 41

LessN9nshippmg in

come and rclmburso

ments of vessel re

activation and de

activation costs n 91 590 799 55 32

Net income loss

from nonahipping

operations 27 917 040 30856

38 515 453 10185

ADMINISTRATIVE ER

TENSES tentative pro

ration 8106 505 316

NET INCOME Loss

FROM OPERATIONS 30408 9147

36

Vessel reactivation costs applicable to vessel

chargeable to charterers

a Credits for materials and equipment remove

noushrpping income at standard catalog prices 

position 11e 1 ot a n mfnr Tti

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Ships of 1000 Gross Tons an

July 1 

Account and 

Maritime Adm

MajorStandard types cargo 

Total Maritime Administration 

Private andfore

ar

ankers

go 

Total MajorType

rcuspid

er

typesTankers 

Total minor types 

Total private and foreign account 

Grand total 

Comprised of 2 Mariners delivered to P

the Great Likes

f Includes 6 ships constructed for Liberia

60
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Ships Approved for Transfer 

GOVERNMENT OW

Cargo ships

Grand total

Cash and Approved Securities 

Reserve Funds of Sub

Operator

PRIVATELY OWN

Ships under1000 gross tons

Commercial craft tugs barges fishing 

Pleasure craft over 5 tons

Undocumented

Tot

motorboat 5 tons and 

Ships of1000 gross tons and over

Tankers Cargoargo1Passenger

Miscellaneous schooners dredges bar

New construction by United States 

operation

Total 

GOVERNMENT OW

Cargo ships

Grand total

Cash and Approved Securities 

Reserve Funds of Sub

Operator 

American Export Lines Inc 

American

American

Mail

President

Line

Lines

Ltd

Ltd

Farrell Lines Inc

Grace Line Inc

Gulf South American Steamship Co In

Lykes Bros Steamship CO Im

Mississippi

MooreMcCormack

Shipping

Lines

o Inc

Inc

Pacific OceanicArgentine

Steamship

Brazil

Co Th

Line 

Inc

Pacific Far East Line Inc 

Pacific Transport Lines

too

Inc 

United

Shipping

States Lines

Co In

Co

Total 

reserve

66
AP

Claims on H

Office

General claims

Insurance

Total

claimsI

Otiice of th General Counsel

With the Department of Justice for litigation

Total

Grand total

Claims Settled Under Suits 

In favor o

Office

Number 

Office of the General Counsel 9 25

Office of the Comptroller 

Total 9