First An

urbrr t 

TItlx m

Fiscal Year En

Far ale by the Superintendmt of 

Washington 25 DC 
FEDERAL M

W

THOS E 

JOHN HA

ASHTON 

JAMES V 

JOHN S 
PR

The material in this report 

June 30 1962 unless otherwise 

ingly the coverage of the rep

involved in the regulation of 

off shore commerce of the Un

sponsibility of the Federal Ma

predecessor

ment on August

organization

12 1961 and

the

period July 1 1961 through 

appropriations and aggregate 

June 30 1962 is contained in Ap
TABLE 

INTERNATIONAL ACTIVIT

TRANSPORTATION HIGHLIGH

ORGANIZATION OF THE FED

Internal Organizatio

Delegation of Authori

REGULATORY ACTIVIT

Conference and Other Agree

Rates Foreign 

RatesUnited States Domesti

Freight Forward

Terminal Operators 

ENFORCEMENT AND COM

Formal Proceedin

Field Investigatio

Matters Referred by Antitrust 

on the Judicia

Conference Minutes Revi

Informal Complaints 

FINANCIAL AND ECONOMIC 

Reporting 

Financial and Economic Ana

INTERNATIONAL ACTIVIT

Foreign Reactions to Public La

Foreign Discrimination

RULEfAIiING PROCEEDING

LITIGATION INVOLVING COM

LEGISLATION AND LEGISLAT

LEGISLATIVE RECOM MENDAT

MANAGEMENT ACTIVITIE

Appointment of Commission

Peisonnel and Budge

Methods and Procedure

PROCEEDINGS BEFORE HEAR

Final Decisions of the Commiss

Decisions of Hearing Examiners 

Pending Proceedings 

AP

A Statement of Appropriation and 

June 30 1962 
LETTER OF 

FEDE

To the Senate and the Home of 

Pursuant to section 103 eo

and section 208 of the Merchan

submit the first annual report o

Commission forthe fiscal year e
REPOR

FEDERAL MARI

Transporta

The most significant events w

were those concerning the est

Commission as an independent 

of new legislation for the regu

domestic offshore commerce of t

The Federal Maritime Comm

tion Plan No 7 effective Augus

and discharge the regulatory a

egthe Shipping Act 1916 

coastal Shipping Act 1933 an

basic objective of Reorganizati

dent s Message to the Congres

administration of our Federal p

and development of the US M

sponsibility in separate agencie

and promotional functions

The Commission is composed 

terms by the President by an

Senate with no more than thr

political party One member i

Chairman and he is the chief 

the Commission

The Commission sauthorities 

statutes embrace five principa

services practices and agreem

other persons as defined in th

foreign commerce of the Unit

tariffs of freight rates of comm

such carriers engaged in the fo

the requirements of statute or th

3 regulation of rates fares 

practices of common carriers b

of the United States 4 i

charges classifications and pra

domestic off shore commerce 

orders and making rules and re

669531632
mon carriers by water te

persons subject to the shipp

The mandate given the 

discharge its regulatory r

reaching impact upon com

eign and domestic off shore 

ences of such carriers an

statutes

This impact was accente

Commission organized and 

sibilities under the Shippin

Act 1933

The Commission sregula

actment on September 19 1

31961 of Public Law 8734

The first of these laws Pu

of independent freight forw

The latter law Public L

sponsibility of the Commi

ments and new responsibi

contractnoncontract dual 

existing section 15 agreem

the standards of the new s

mission c modification 

with the new statutory pro

mission d filing and re

and outbound rates charge

the waterborne foreign com

with the requirements of sta

lations e inspection of a

a reasonable charge f is

prescribing the form of ta

mission of any rate or char

unreasonably high or low 

the United States and h 

Commonwealth or possess

against any rate rule or 

criminatory against that S

The Commission during 

rulemaking proceedings o

visions of the newly enacted 

of the Shipping Act 1916 

These proceedings coupled 

mission to apply the shippi

a number of major problem

significance the solutions o

of the fiscal year

2
There is reflected in detail 

Commission sactivities in 

responsibilities

Organization of the F

Internal Organization

The Commission immediat

implement Reorganization Pl

of its program responsibilitie

result of this evaluation ther

structure consistent with the p

tion Plan No 7 of 1961 and s

No 6 of 1949 The major o

below

1 Office of the Chairma

2 Offices of the Member

3 Office of the Secretary

4 Office of the General C

5 Office of searing Exam

6 Office of International 

7 Executive Director

Office of Administ

Office of Informat

Bureau of Foreign 

Bureau of Domes

Bureau of Admini

Bureau of Investig

Bureau of Financi

Offices of District 

Delegation of Authorities

Coincident with the establish

Commission the Commission 

appropriate officials and head

nents The delegations made 

organization Plan No 7 which 

to delegate by published orde

sion of the Commission an in

aminer or an individual empl

nothing so delegated shall be 

section 7a of the Administr

this connection the Commission 

the action of delegatees in uc

Commission rule The Comm

Manual of Orders Commissio
ary 26 1962 and subsequen

enumerated as follows

I The Executive Director 

a Authority to accept o

carriers or common carriers 

States or conferences of suc

ments of statute or the Coms

pleteness and clarity of the r

or noncompliance with Spec

mission

b Authority to approv

mitted by domestic offshore 

merce of the United States 

from a statutory andor Com

relief sought is limited to one 

to deviate from prescribed t

clerical or typographical er

tive date of a previously sub

or withdraw protested matte

c Authority to review 

suspected violations exclusiv

statutes and rules and regu

carriers by water in the dom

merce of the United States te

other persons subject to the 

thority to determine correcti

tions and conduct negotiation

parties except where violatio

major interpretations of sta

the Commission or acts hav

the United States

d Authority to approve 

mission policy and criteria a

to all persons partnerships 

engage in ocean freight forw

to the Commission of those t

e Authority to develop 

assure compliance with the p

persons subject thereto inclu

for 1 the submission of 

and data 2 the administr

tivities and practices of comm

shore trade and the foreign co

of such carriers terminal ope

sons subject to the shipping 

studies

f Authority to approve 

1916 unprotested cooperati

4
pendent ocean freight forward

forwarding pursuant to sectio

2 The Special Permission C

tor and the Director Office of 

a Authority to approve S

lief from a statutory andor 

relief sought beyond that dele

b The Deputy Executive 

were authorized to act as mem

the Executive Director or the 

rector Office of International 

cial Analysis was authorized to 

c The Executive Director 

the Special Permission Comm

for the conduct of Committee 

actions and recommendations

3 The Secretary was deleg

for permission to practice bef

and to issue admission certificat

4 The Secretary General C

of International Affairs and 

authority to exercise all func

direct and carry out the duti

Office of the Secretary Office 

ing Examiners Office of Inter

rector in accordance with their 

Regula

Conference and Other A

A prime responsibility of 

activities of common carriers 

the United States insofar as 

rates control competition poo

ports or regulate sailings re

odnerwiso enter into exclusive 

arrangements Under section 

such agreements rust be filled 

before they can be lawfully c

be disapproved if found after 

detrimental to the commerce 

public interest or in violation 

1916 At the close of the 

agreements on file with and b

These consisted of 131 conf

service agreements 42 poolin
and 440 transhipment and mi

ments In addition there w

and 201 freight forwarder ag

Public Law 87346 effecti

the duties of the Commission 

and created new responsibil

contractnoncontract dual r

Commission to disapprove a

bers of the same conference o

trades which otherwise wou

dependent action by each pa

agreements are required to 

conditions for admission a

conference membership In 

the use of contract rate syste

Maritime Commission when 

finds that the particular con

new statute

Public Law 87346 also pr

had been lawful immediately 

on October 3 1961 remain 

modified by the Commissio

proviso to the effect that all 

meet the standards of the new 

unlawful by the provisions o

ply with the provision of s

were filed for approval with 

the enactment of the Act s

for a period of not to exceed 

sion is required during such 

modify all such amended ag

Three rule making proceed

statutory requirements 1 

sion Withdrawal and Psxpu

Agreements published in the 

Docket No 982 Rules Gove

in Agreements published in 

3 Docket No 983 Rules G

Foreign Commerce of the 

Register of March 21 1962 

interested parties were in pro

is anticipated that promulga

of final rules will be forthco

the foregoing rulemaking pr

posed rules governing self p

conferences This proceedin

Applicable to Self Policing 

ference agreements and wa

March 241962

6
Finally Public Law 87346 p

fully in use on October 2 1961 

visions of the new Act and filed 

The Commission processed the 

notices of such filings in the Fe

questions and inquiries regardin

legislation Final action on th

fiscal year 1963

In addition to the heavy volu

Public Law 87346 there were p

ments under section 15 of the S

such agreements and 39 cancella

agreements approved 4 were ne

service agreements 5 were poo

sailing agreements 87 were tr

miscellaneous cooperative work

the end of the fiscal year were 6

existing agreements and 26 canc

Rates Foreign

Public Law 87346 amended 

new section 18 bproviding es

1 All rates inbound and o

by water and conferences of su

the United States and rules and 

of such rates must be filed with 

2 Rate increases and new 

advance of the effective date o

for good cause grants special 

than the statutory notice and ra

filing

3 No common carrier by 

shall charge or demand or colle

tion than the rates on file with t

4 Copies of tariffs shall b

reasonable charge may be made 

5 The Commission shall 

tariff filing

6 The Commission shall 

after hearing it finds to be so 

rimental to the commerce of the 

The statute also amended the 

the Governor of any State Com

States may file a protest again

discriminatory against that S

which event the Commission m

the rate should be set aside
Pursuant to the new stat

proposed rules and regulat

Federal Register on Decemb

by Common Carriers by W

States and by Conferences o

year the comments from ca

were being analyzed for th

As a result of the new le

an average of approximate

300 per working day

During the period Janua

sion rejected 108 tariff filin

provisions of the new law 

special permission to file n

days notice were processed 

granted and 23 denied

Rates United States D

Continued efforts were de

responsibilities of the Com

domestic offshore rates an

pursuant to the Intercoasta

In this connection it was n

4012 schedules of tariff cha

carriers 455 corrections of 

the filings the subject of me

tution of action including 

In addition 82 special perm

71 were approved 4 denied 

Related to the foregoing 

ing the year 1 developm

rates 2 review and canc

3 development of rules 

freight moving in container

for the filing of rates sched

notice to the public and a lo

tion and 5 preparation of 

Early in the fiscal year a 

Puerto Rican trade The 

war ordered an investigati

of the rate changes Hear

figures applicable to all rate 

of the carriers in the trade 

the end of the year

Several matters of specia

offshore trade They were

8
1 Bull Steamship Co Inc 

Puerto Rican trade curtailed 

tion in the trade The forme

tonnaged and shippers began 

space To meet the space sho

of service SeaLand Service I

purchased from Bull Lines tw

under conversion The Comm

between the carriers

2 The Alaskan trade was 

Freight Lines Inc Alaska 

Transport Company Inc Gr

Pacific Inland Navigation Co

Lines division of Puget Soun

Tug Boat Company Alaska 

the year principally to ports 

creases were under investigati

year

3 The most significant tec

shore trade was the trend to

Rican trade SeaLand Servic

Lines which were converted to 

ity in containers and Transa

container vessel to replace the 

and at the end of the fiscal 

Line s breakbulk service mig

operated by Grace Lines Inc 

SeaTrain Lines In the A

utilized conventional vessels w

operations Puget Sound Tug 

carriers who operate tug and 

traffic in containers In the 

program which Matson Navig

through fiscal year 1962 In 

a specialized automobile carrie

4 During the year Matson a

ratemaking concepts in order 

moving from Hawaii to the G

entered into arrangements wit

vide a lower schedule of rates 

in advance to tender their ship

the year in optimum pallet p

berths The new tariffs incorp

arrangements appeared to be n

mon carrier service between po

ports in Hawaii and not to dis

Accordingly they were allowed 

669631633
Freight Forwarding

Public Law 87254 enacte

Shipping Act 1916 provide

freight forwarders by the Fe

the payment of compensati

licensees who certify to suc

certain dispatching services

The statute was precipitat

Commission spredecessor of 

payment of brokerage to fo

various malpractices by certa

warders ie collection of br

forwarding corporation 2 

purpose of securing control 

earned brokerage payments e 

who has not serviced the sh

to be motivated by receipt o

carriers It was further fou

services were performed for 

After reviewing the prob

malpractices in the freight 

by a licensing program rathe

accordingly enacted Public L

lation is to recognize the pro

respect to freight forwardin

sponsibility and authority t

implementation of broader a

of brokerage by carriers to f

under conditions prescribed i

The Federal Maritime C

proposed rules prescribing co

would be licensed These rule

after seeking the recommend

by the freight forwarder ind

application styled Form FM

An Independent Ocean Fre

proposed rulemaking procee

k Licensing of Independent 

subsequently adopted by the C

Immediately prior to enac

1721 ocean freight forwarder

suant to FMB General Orde

1962 the cutoff date for gran

918 applications had been file

registrants By February 3 

applications were prelimina

numbers were assigned and t

were authorized to continue 

10
until further ordered by the 

ditional 81 applications were 

to engage in the business of 

were not registered pursuant t

applications were fled subseq

requires applicants in this ca

licensed Preliminary negotia

commenced with surety assoc

promulgating an acceptable s

During the year a rulemaki

of devising substantive rules p

business practices of the lice

Docket No 973 General Orde

lndependerne Ocean FreigR F

Oceangoing Common Carrier

code of conduct for licensees a

sions Fortyseven controver

mitted in connection with this 

under analysis at the close of t

In order to expedite the pr

tions the Commission has dele

ity to approve within the fram

and criteria applications for 

sons partnerships corporatio

ocean freight forwarding act

Commission of those that app

Terminal Operators

The Commission in April 

pose of developing new rules f

These rules will if adopted a

of tariffs of terminal rates with 

effectuation and standardize 

charges to be included in all 

proposed rules were being fin

making proceeding to prescrib

and demurrage applicable du

ance pending a decision by th

Columbia with respect to sim

murrage applicable during lon

1962 rendered its decision con

strikes of longshoremen and 

termine its effect upon the pend

The Commission also institu

investigate practices of Pacific 

demurrage and storage charges 

rules were published in the Fed

a result thereof were being ana
The decision of the Cour

Greater Baton Rouge Port C

United States of America an

86 1961 has resulted in t

large number of lease agreeme

operators The problem conc

to section 15 Shipping Act 

approved pursuant to the sta

50 such agreements were rece

agreements were processed

The Commission examined 

year processed 26 informal 

and policed the activities of 1

terminal operators Practice

were regulated by inspection 

by interested persons

Enforceme

The establishment of the F

pendent regulatory agency pu

August 12961 carried with 

effective administration of th

particular efforts were expen

areas of enforcement and com

Formal Proceedings

The Commission on its own 

vestigations as to the propri

Intercoastal Shipping Act 1

to the Shipping Act 1916 an

60 proceedings for dual rate 

ping Act 1916 and 9 inves

industry The volume and p

are reflected in the tabulations 

12

Rates 

Rulemaking 

Dual Rate Contract Determinatio

Other investigations 

TOTALS

12
The following are some of t

of during fiscal year 1962

In Unapproved Section 1

Docket No 882 April 10 19

ents were in violation of sec

their failure to file and becau

ized agreement fixing freight 

States and South and East Af

nificant because it contains im

a clear and concise explana

responsibility

In Pacific CoastHawaii a

creases in Kates Dockets No 

Commission determined the f

ocean transportation betwee

Hawaii This case settled fo

ing issues which should enable 

more expeditiously and at les

mission

In Practices and Agreement

nection with the Payment o

Freight Forwarders and Fre

23 1962 the Commission ma

Law 87254 and determined 

warders under the statute was 

among carriers prohibiting b

than 1t percent were found 

trary to the public interest in 

Public Law 87346

In States Marine LinesHoh

15 Docket No 892 October 

shipper knowingly and willfu

ocean transportation at less th

lation of section 16 The com

to have allowed a person to o

ular rates by means of false bi

Field Investigations

There were 153 pending inv

ing fiscal year 1962 investiga

150 cases were closed leaving 

1019 cases This pending w

warder matters 55 matters of 

fication mismeasurement et

46 matters in which active inv

ing action of other Commissio
The 912 freight forwarder m

license as an independent oc

during its investigation of 

covered a number of violati

found to consist primarily o

applicants who have been op

out a license These violat

Justice for appropriate actio

During the fiscal year the 

victions for criminal violatio

gregating 111 290 were as

year seven other matters pen

the institution of court action

Matters Referred by An

Committee on the Judi

As a result of the investig

gressional committee condu

were 236 possible violations 

by the Subcommittee or ind

Maritime Board for review 

fiscal year 1962 24 of the ite

Justice of which five were re

mission In addition 19oth

and general rule making pro

32 other items on the basis 

tion to curb the questionable p

than those that were time bar

were under staff review and 

Conference Minutes Re

Conference agreements of 

merce or the domestic offsho

the filing with the Commissio

of all conference meetings 

action

During the fiscal year in 

amined Of this number in 

which 175 required an excha

sulted in compliance on the p

involving practices which co

if not corrected Five other 

tion and 3 were under legal co

other items were resolved up

ference chairman or secretar

14
Informal Complaints

On June 30 1961 there were 

ing violations of the shippin

there were received an additio

there were 130 processed to c

to be violations of the statutes 

tween the parties Of the rema

formal proceedings 28 were 

ferred to the Department of J

pending on June 30 1962

The subject matter of the 

of the Shipping Act 1916 and 

and included but were not li

damages or overcharges violat

against rates unjust or unfair d

passenger service complaints a

tion in violation of section 20 S

Financial and 

An organizational entity wh

of financial and economic ana

mission as an extremely impo

regulatory functions SiTith th

have been directed during the 

systems devising a revised un

by water and planning for a fie

Reporting

On January 24 1962 the Co

the form of General Order So 

operation of vessels in the comm

the domestic offshore trades to 

with the Commission These r

mestic offshore common carrie

Financial and Economic A

Resources of the staff were ap

cial and economic aspects of im

the exercise of its regulator fun

During the year 14 summary 

of the Commission and its progr

position of 7 major domestic off
by the Commission and the 

period Significant eleme

rately to show trends and 

these operators or in thei

statements were devised to 

tions of parties to 4 rate cas

Preliminary work was un

the uniform system of acco

scribed by the Interstate C

ministration The assistan

be obtained particularly w

requires the modification 

them adequate and abreast 

tion and automation

In the coming fiscal yea

will be developed prescrib

auditors in their verificatio

mission A uniform audit 

domestic offshore trades i

Commission sregulatory 

market will be carried on to 

both borrowed and equity 

This study will require an 

turns earned on capital em

reasonable return under cu

capital requirements and s

sion will participate with r

Commission and Maritime 

accounting formulae for th

costs and expenses between 

study with the assistance o

actively pursued during the 

Intern

Foreign Reactions to 

The passage of Public L

1916 was received with co

maritime nations as well as 

law as an attempt by the U

ping in international trad

avoided because of the com

Resistance on the part of 

various steps taken by the F

the law The issuance of pr

tariffs brought forth protes

16
from Japan Proposed rules 

in conference agreements resul

nine European countries with 

of Greece and Japan These 

meetings in Paris and London 

the Governments of Great Brit

Germany Greece Italy Norw

the stated purpose of consideri

of the United States law Opp

of shipping in its foreign trad

the Federal Maritime Commis

lines who were alleged to have 

statutes These documents 

consideration of the allegation

In this connection the Chairm

sion was designated to head the 

ing of the Maritime Transpor

Economic Cooperation and Dev

July 5 1962 for the purpose o

the European members of exp

answering questions pertainin

meeting may not resolve the p

it will lead to a better unders

and its European associates in th

Foreign Discriminations

One of the responsibilities o

is the elimination of discrimin

governments against United St

During the year the Federal 

the practices of fourteen for

America Europe and Asia whi

Corrective steps have been und

degree of correction or relaxa

with the remaining four still 

close of the year The practice

discriminatory in nature were 

United States flag shipping ser

watched for any change which w

flag carriers

In this area the Federal Ma

with the Department of State 

representatives of foreign gove

notes of protest If these prote

they are followed by other st

drafting of offsetting rules and 

19 of the Merchant Marine Act 
Rule Ma

During fiscal year 1962 

rulemaking proceedings to 

new provisions of the shipp

carriers by water in the for

the United States and othe

DOCKET No 875 Filing of T

DocKET No 955Rule8 Co

cable During Seamen s

DOCKET No 964Filing of 

Foreign Commerce of 

Such Carriers

DOCKET No 965Investiga

Practices of Pacific Co

Collecting Wharf Dem

DOCKET No 973 Practices 

warders et al

DOCKET No 981Rules Go

pulsion Provisions of S

DOCKET No 982 Rules Gov

in Agreements

DocKET No 983Rules Gov

eign Commerce of the 

DOCKET No 986Rules App

ing Provisions in Confe

At the close of the fiscal 

going proposed rules subm

were being analyzed for the 

mission in fiscal year 1963 

proceedings to provide rules 

to section 15 Shipping Ac

lowed in the filing of tempo

trade and c govern prac

agreements of terminal oper

There were published du

of the Commission on the f

1 Continuance of Function

organization Plan No 7 of 

Seal of the Federal Maritim

and General Order No 4 A

Ocean Freight Forwarder

Common Carriers by Wate

e Manual of Orders Co

Order No 1 Amended O

Maritime Commission Com

itial delegations of authorit

18
Litigation Involvin

The Commission experienced 

ing the fiscal year attacking its 

regulation of rates and practice

others in the foreign commerce 

domestic trades All indications 

to continue or to rise as a result o

tory program There were 56 

involving actions by the Commis

these including 26 socalled c

more of three related rate filin

been disposed of by the end of th

Among the more significan

following

Trans Pacific Freight Conf o

302 F 2d 875 DC Cir in w

lacks the power to issue an inte

the status quo pending its findin

fore it

Anchor Line Ltd et al vFMC

Cir in which it was held that 

review of a Commission proce

Commission from reopening th

should by appropriate motion b

Flota Mercante Grancolombia

302 F 2d 887 DCCir in wh

finding that a common carrier 

qualified shippers of a commodi

any space on its vessels 2 he

reparations for violation of the 

reach an equitable result under 

that the Court of Appeals has 

1950 5 USC1031 to determin

whether at the instance of the 

party ordered to pay them

Swift d Co et al vFMCa

in which the court made clear t

the Shipping Act 1916 is not s

exists legally only because appro

and must be interpreted by the 

and its effect on commerce and 

that arbitration provided for b

agreement cannot negate the Cs

mine the validity of the agreem

Royal Netherlands Steamship 

F 2d 938 DCCir in which 

article is not changed by the fac
and that its character and 

tion and applicable transpo

tariff and further held tha

in this case were correctly 

tained by false classification 

rate in violation of section 

were not shown to have had 

knowingly and wilfully 

applicable rates merely be

classification

In addition to the forego

ment of Justice in connectio

instituted for the recovery o

In most of these cases the D

the defendants after enteri

fined by the courts

Legislation an

The Commission was con

ters during the past year 

Commission were Reorganiz

254 and Public Law 87246 

the Federal Maritime Comm

cy and increased responsibi

of the waterborne foreign 

United States These matt

of this report titled Transp

Legislativ

The Commission has und

proposals Those referred 

They have the purposes of 

domestic offshore commerce 

exercise by the Commissio

clarifying certain sections 

proving and speedingup th

the Commission The prop

The Commission will furnis

legislation to implement the 

1 Section 22 of the Ship

to authorize the filing of co

lated any section of the Act

Section 22 provides that 

a sworn complaint setting fo

carrier by water or other pe

20
of other persons subject to this 

written does not include shipp

riers and others such as forwa

complained against for violat

entertain complaints by third p

who violate the Act

2 The immunity provision o

so that a natural person who 

claim the right to remain silen

from prosecution

As now worded this section h

immunity to a natural person w

he claims the right to remain s

recent legislation which requ

immunity

3 An appropriate provision 

to authorize the Commission 

and in aid thereon to exercise 

nesses and to take and record te

complaint on the Commission s

The Commission is utilizing 

sor which provides for infor

tigations to obtain informatio

duties 46 CFR Part 201 S

the general authority contained 

procedure It is felt howeve

language covering the procedu

make clear that in aid of suc

exercise the power of subpo

similar authority is vested in 

4 The Commission should b

penalties for violation of the 

ties for rood cause subject to j

In this connection the crimina

be changed to civil penalties

The Act does not authorize t

although it may upon proper 

jury suffered as the result of a 

increased if the Commission is 

judge penalties This would e

trict court penalty suit as is pr

Commission to relate the pena

jectives In addition the statu

in all instances for the maximu

ing discretion for the assessm

deemed appropriate in the part

5 In connection with the f

be vested with the authority t

consent of the person proceede
from practices alleged to 

amount assessed by the Com

6 In addition the Comm

and desist orders of an inte

of full evidentiary hearings 

oral district courts

This recommendation wou

status quo where conduct o

the Commission and there 

to the public interest or irr

ests The power sought is 

regulatory agencies As no

Appeals for the District of 

mission lacks such authority

7 Section 18a of the S

Intercoastal Shipping Act 

that a water carrier in the 

factor rates which include 

livery service when that serv

wise under the jurisdiction 

Savings to water carriers 

from the recent innovation 

important extent upon pick

riers acting as agents of the 

make it clear that the Com

ery and other services when 

the water transportation

8 Section 2 paragraph 2 

should be amended to requ

carriers by water in the do

days in advance of the effe

to file on short notice is obtain

Section 2 paragraph 2 of 

that rate changes must be file

unless special permission to 

Commission but no ment

Filings of the latter on shor

caused confusion to shipper

carriers and have resulted in 

able tariffs which would ha

time were afforded A sim

rate filings by common carri

cently added to section 18b

87346 75 Stat 762 765

9 The Shipping Act shou

all terminal operators in th

and keep open to public ins

charges rules and regulatio

or delivering of property 

22
tariffs must be filed and publish

date thereof and that the rates 

shall be the lawful rates and ch

collected or imposed

This proposal would put term

in giving users of their services 

rules and regulations and would 

ing the payment of rebates or t

sorptions or allowances by termin

10 Judicial review and enfor

by the Commission should be cla

This proposal is desired so as 

that are apparently necessary 

disposed of This problem was 

of Appeals for the District of 

colombiana et al v FLYC and 

there recognized that even thoug

tions is upheld by the court of a

Act of 1950 5 USC 1031 

whose favor the order was enter

trict court to obtain enforceme

Shipping Act 1916 and that su

in which the result aright var

order theretofore judicially affi

11 Section 11bof the Ship

as to permit conferences of car

rates or otherwise permit conf

less than 90 days notice so lon

publish and file a rate which is l

contract rate

Section 1bas it now stands 

system in whole or with resp

days notice The opening of a 

the rate is opened from the conf

age of the conference dual rate 

rate system with respect to su

Rates are generally opened in o

day or sometimes hour to hou

stimulate the How of our foreig

12 Section 18 of the Shippin

coastal Shipping Act 1933 s

Commission to cancel tariffs on 

the tariffs has been discontinued

Maintenance in the files of th

no longer serving a trade can o

needlessly encumber the files o

should be specifically authorize

not providing service to the ship
13 Section 43 of the Sh

a civil penalty for the vio

and the Commission should 

the amount of penalty In 

amended to include suits to 

The Commission believe

and regulations are provide

Secs 204 and 806 d 

should be included in the 

as to the penalty for viola

mission It is to be noted 

specific provisions

14 The Federal Maritim

Commerce Commission an

authorized to participate in 

ing the efforts of Federa

transportation

The establishment of jo

transportation system for 

transit by rail truck air o

point of final destination 

the different regulatory ag

joint board concept would 

knowledge and experience o

Although through routes 

trades with Alaska and Ha

the Interstate Commerce C

joint board would be of va

sibilities for the regulation 

sibility of the Interstate C

services in the continental 

through routes for Puerto 

and the development of th

transportation in our foreig

of joint boards would be i

portation Message of Apri

Congress declare as a matte

joint rates should be vigorou

portation agencies be autho

15 The authority of the 

voluntary refunds to shippe

shippers for good cause su

clear by amendment of exist

Common carriers by wat

the Intercoastal Shipping 

Commission tariffs showing 

prohibit charging more or 

which are filed

The Commission believes 

24
where through bona fide mistake 

would be charged more than he 

gested however that the law be 

authority exists The discretio

be similar to the special permis

mission under section 18b2 

1933 Act regarding the 30day 

only upon the filing of a prop

16 The Intercoastal Shippin

specifically provide that the Fe

scribe the form of accounts to 

Intercoastal Shipping Act 1933 

tives of the Commission have a

counts books and records of suc

In order that the Commissio

and responsibilities in connecti

riers subject to the Intercoast

specify that such authorities w

regulatory agencies resides in t

The Commission as appropri

recommendations to the Congres

of meetings which the Federal 

during the forthcoming fiscal ye

foreign flag common carriers 

shipper organizations

Managem

Appointment of Commiss

Reorganization Plan No 7 o

Commissioners appointed one s

on June 30 1962 one for a term 

term expiring on June 301964 a

1965 Further the Plan provid

for terms of four Years except t

shall be appointed only for the 

whom he succeeds

Upon establishment of the Co

1961 made the following inte

Chairman and Commissioners 

General Counsel of the Maritim

missioners Rear Admiral John 

Maritime Board Member Fran

of Commerce for Transporta

former Federal Maritime Boa

Budget and Management US 

interim appointments were m
organization Plan No 7 o

1961

The President pursuan

and with the advice and 

Commissioners for the peri

Thos E Stakem of Virg

7 1961 confirmed by the S

expiring June 30 1964 M

eral Maritime Commission 

27 1962

John Harllee Rear Ad

of Columbia appointed by 

by the Senate on Februar

1965 Admiral Harllee 

Chairman for the period en

Ashton C Barrett of M

October 7 1961 confirmed 

the term expiring on June 3

John S Patterson of M

October 7 1961 confirmed 

the term expiring June 30 

the President and confirme

term expiring June 301966

James V Day of Maine 

ary 16 1962 confirmed by 

term expiring June 301965

Messrs Stakem Barrett 

under Presidential recess a

to February 271962

Personnel and Budge

Pursuant to Reorganiza

to the Commission from 

Administration An addit

making a total of1306 00 

year 1962

On August 12 1961 the 

7106 employees were trans

Maritime BoardMaritime 

staff of 188 was attained 

year 1962

Methods and Procedu

Related to the establish

initial delegation of autho

rected to the 1 establi

General Orders Manual 

26
cedures and Circular Letters a

internal operating and adminis

processing

business

of workloads and th

Proceedings Befo

At the beginning of the fisca

ings were pending and there 

cases 5 cases were returned to 

court remand making a total 

oral argument on 27 cases and 

which were interlocutory decis

of without report The exami

30 recommended or initial decis

Final Decisions of the C

Docket No 726Isbrandtsen Co 

ware et alDocket No 732II 

et alDocket No 733H Kempn

alDocket No 634 Galveston Cot

Inc etal Dockct No 735Texas 

Co Inc et al It was determined i

for hearing the 1 exclusive patr

by the Far East Conference and b

were made pursuant to agreements 

2 agreements filed by Far East Co

ference were not unjustly discrimin

riers or operated to the detriment 

violation of section 15 of the Shippi

Corporation of Delaware a commo

and collected a rate which is unjus

tion of section 17 of the Act 4 W

carrier by water had demanded ch

discriminatory between shippers i

Isbrandfyeu Co Inc complainant 

reparation for the injury caused by 

Corporation of Delaware andR

of 96G870 6 Isbra ndhen Co 

including sections 14 la and 16 the

of its members 7 Harris L Ke

Texas Cotton Industries Inc shipp

of the Act including sections 14 lo 

ence or by the Gulf Mediterranean C

Finally it was determined that the 

Steamship Company to remand th

the hearing examiner with directions 

Docket No 807 Atlantic Gulf

Charges This proceeding was rema

Court of Appeals for the District o

wealth of Puerto Rico v Federal M

sion on the issue of proper rate bas

standard for rate base measureme
respondents United States Atla

Line Inc Lykes Bros Steams

Alcoa Steamship Company Inc 

investigation were just and rea

Docket No 831Practices an

Connection with Payment of B

warders and Freight Brokers 

provisions of Public Law 57254 

licensing independent ocean fre

permissive 2 the statute doe

brokerage to freight forwarder

limiting brokerage payments to 

bidden by Public Law 87254 

limiting the amount thereof to le

foreign commerce of the United 

United States and contrary to 

the Shipping Act 1916 as amen

common carriers by water engag

European Conference were direc

proceeding were set aside and 

foregoing Docket No 857Evans Coop

Port of New Orleans It was d

foliage charge on cargo transfe

spondent swharf without cargo 

unduly prejudicial

Docket No 869 Pacific Coa

Increase in Rates Docket No 

Bulk Sugar RatesDocket No 

1961 It was determined th

Company for the transportation 

Gulf coasts and Hawaii were not 

Docket No 882 1

It was determined that respon

Lykes Bros Steamship Co Inc 

McCormack Lines Inc and 

Baron Iino Line during the pe

and unapproved cooperative wo

transportation rates and related 

States and South and East Afri

1916 It was also determined 

filed and unapproved agreemen

September 10 1958 It was fu

and Robin Line Division of M

during 19571958 in the United 

in violation of section 14 Second 

Docket No 883Unapprove

America Trade It was determ

Coast of South America Confe

Navegacion Maritima S A C

Vapores Chilean Line Flota 

Grace Line Gulf South Am

and West Coast Line Inc We

America Conference then com

French Line Compania Ch

Naviera Independencia S A In

S A Peru Line Mots Mer

Grace Line Kawasaki Kisen 

NederlandschAmerikaansche 

Lijn Royal Mail Line Ltd W

28
Company Line Wiel AmundsenAS 

have been acting pursuant to an 

arrangement in violation of section 

Coast South America trade during the 

Docket No 892 State8 Marine Li

16 It was determined that responde

Hobenberg Bros Company a shippe

spectively on cotton shipped from S

uary 1958 knowingly and willfully v

Docket No 898 California Steved

District et al It was determined th

tors Inc and Stockton Port Distric

Act 1916 2 by said agreements a

into effect a practice related to and 

livering property which practice is 

detriment of the commerce of the U

interest and 3 putting into effect 

have failed to establish the just and 

of the Shipping Act 1916

Docket No 904 Puget Sotind Tug 

pasvy et alDocket No 914 Pnget 

Boat Company et al It was dete

was a common carrier with respect 

with Northland Freight Lines and s

15 of the Shipping Act 1916 It was 

Lines is a non vessel owning commo

Commission The allegations of dam

Docket No 906 In the Matter o

Practices of the North Atlantic Wes

mined in denying an appeal from 

motion of hearing counsel for disco

alleged to be in the custody and con

Bristol City Line Cunard Steamsh

Withy Co Irish Shipping Ltd Ma

Ltd and United States Lines Co an

investigation limited to the practices 

water in the foreign commerce of th

vested in the Commission by the S

aminer was empowered to make the r

Docket No 91831itsni Steamshi

Co It wan determined in denying a 

sion directing respondent to furnish 

tries that an investigation into an a

by water in the foreign commerce of 

vested in the agency by the Shippin

was empowered to issue the order in q

Docket No 920 and Docket No 92

and Global Bulk Transport Corpora

Japan et al It was determined t

Shipping Act 1916 by the establis

self policing system which did not co

by the Commission Respondents 

unlawful and to cease and desist fro

other fines assessed by the Neutral B

out the Neutral Body amendment ap

agreement in any manner inconsisten

Docket No 926Inve8tigation of I

Rates Between Ports of Call Within 

that the increased class and commo

ports in the State of Hawaii were jus
Docket No 927Nest Indie

Company v Flota Mercante 

respondent srate on bananas fr

preferential or prejudicial betw

of the Shipping Act 1916 nor u

in violation of section 17 thereo

Docket No 931In the Mat

Steamship Company Inc Isb

Lines Inc It was determined 

pursuant to section 15 of the S

discriminatory or unfair as b

or ports or between exporters 

petitors 2 said agreement w

to the detriment of the comme

to the public interest The agre

Docket No 947Internation

River Line Pier Inc It was 

the Shipping Act 1916 and su

respondent had not violated s

berthing and storage charges 

and section 17 of the Act in 

charges and 4 complainant d

imposed on International Trad

The proceeding was remanded 

determining reparation if any 

Docket No 948Pacific Co

that the conference and its mem

not comply with certain reque

the alternative why Agreement 

ference and its member lines 

to the close of business on Janu

otherwise the Commission wou

agreement

Docket No 949 Matson Navi

Rules It was determined tha

application of which determine

Francisco Bay ports to Hawaii 

Docket No 951 Investigation 

for Traffic from Great Lakes to 

Examiner which was adopted 

from Erie Buffalo Rochester 

as rates from Cleveland and hig

not shown to operate to the de

to be otherwise harmful

Docket No 954Investigatio

Piterto Rico Trade It was de

by the Commission that a prop

United States to Puerto Rico b

basis for a decision and the pro

ther hearing and initial decision

Docket No 972Order that A 

termined that respondent had 

of the Iutercoastal Shipping A

the carriage of sugar from po

Atlantic Ports of Baltimore Ph

all freight destined for Ponce 

Baltimore Philadelphia and N

withdrawn and proper tariff sc

Docket No 988 Inthe Mat

Vessels ALICIA and DORO

30
8745 and 874 51were not unjustly di

shippers exporters or ports or betw

their foreign competitors and 2 s

Shipping Act 1916 will not operate 

United States and are not contrary to 

87451 were approved pursuant to s

Special Docket No 243 YHiga 

Inc It was determined that Pacific 

Intercoastal Shipping Act 1933 by ch

transportation of vans knocked dow

between July 21 and August 8 1961 

schedule on file with the Commission 

to abstain from collecting undercharg

Decisions of Hearing Exa

Docket No 881General Increases 

termined that 1 increased rates of A

Garrison Fast Freight Division of C

Northern Express Inc as later ado

to become effective January 10 1960 a

the future 2 entry of an order re

under investigation and discontinuan

ents should be made 3 the increas

unjust and unreasonable in the pas

the investigation requiring responde

received by reason of the increased r

charges in excess of those determined 

ful should be vacated and set aside 

that the rates of Puget Sound Alaska 

able for the future to the extent the

Steamship Company on January 9 1

requiring this respondent to cease and 

rates found unlawful It was finall

respondents to the extent assailed w

unreasonable or othem4se unlawful e

Docket No 885 Unapproved Secti

Trade It was determined that resp

acting pursuant to an unified agreem

tion 15 of the Shipping Act 1916 in 

the period from January 1 1954 to Se

Docket No 896 Unapproved Sect

It was determined that respondents 

out an mulled and unapproved agreem

United States Pacific Coast ports to 

Shipping Act 1916 It was conclude

violation that the investigation sho

ceedings

Docket No 901General Increase

It was determined that the transpo

East Line Inc from California to G

plicable rates and it was concluded 

be ordered It was further determine

Wake Island Ebeye Kwajalein At

able

Docket No 003 Pacific Coast Puert

determined that a rate increase of 1

ports of the United States to Puerto 

increased rates on reeling and paint 
It was concluded that the rates 

respondents should be require

on roofing and paint such act

of a rate increase of 5 per cent o

Docket No 905 United Sta

tion 16 It was determined t

fully obtained transportation b

from North Atlantic Range p

Rotterdam at less than the ra

applicable during the period 

violation of section 16 of the 

that United States Lines Com

transportation of logs between 

charges then established and 

aforementioned period by mea

ond of the Act It was conclu

Docket No 909Harbor Co

Navigation Company It was 

tion Company to provide a re

Hawaii had not given undue 

Angeles and had not subjecte

or disadvantage under section 

cluded that the complaint shou

Docket No 912 Matson Na

determined that the tariff of M

erized cargo from California 

included pickup service in po

tainer freight station or conta

sion jurisdiction and should b

Docket No 952 Investigatio

Contiguous States of the Uni

1 William Shimmel had no

state commerce and the inve

Dan Starkweather dba Alas

ducting common carrier opera

should be discontinued as to h

ing common carrier operations 

violation of secton 2 of the In

to Tune 1961 when tariffs we

to be in compliance with such 

tion should be discontinued a

that KimbrellLawrence Tran

Association and Ketchikan M

and were conducting common 

filing tariffs in violation of se

amended and an order should 

and desist from further carria

filing tariffs showing rates fa

in Alaska and ports in other sta

Docket No 9 Sub No 2

fined or Turbinated in Bags 

determined that the 1 propo

in bags from San Juan Ponce 

and Baltimore were just and 

should be vacated and the inves

Docket No 967Alcoa Stea

de Navegacion et alDocket 

86y01 Between Grace Line I

Covering Pooling in the Nort

that 1 agreements 8640 and 

32
as between carriers shippers export

ments operated to the detriment of 

were contrary to the public interes

served by Grace Line to undue and un

4 subject agreements should be d

complaint in Docket No 967 should b

discontinuance of the investigation

Docket No 974Puget Sound Tug 

IncDocket No 984In the Matter 

Tug Barge Company and Alaska F

the tariff rate of respondent Alaska 

land haul to be substituted for 

ments

vessels

originating

was not

at

unlawful

or destined

Acco

to 

plaint in Docket No 974 should be 

No 984 should be discontinued

Docket No 976 Agreement 8492 

land Freight Lines and Wagner Tug 

was determined that 1 agreement 

fair as between carriers shippers 

exporters from the United States and 

ment was not in violation of the Sh

detriment of the commerce of the U

public interest and 3 pursuant to 

ment 8492 should be approved

Special Docket No 244 Martin 

ship Co Inc It was determined 

thority to waive collection of underc

to the United States could not be e

empowered to grant such authority 

denied

Examiners also issued decisions i

920 Sub No 1 926 927 947 949 

described above under Final Decisio

Pending Proceedings

At the close of the fiscal yea

of which 114 were initiated on t

and the remainder were for

applications

Ender 14organization Plan 

Federal Maritime Board was 

formerly performed in connec

sidies were transferred to the 

Federal Maritime Commission 

latory matters By agreement 

the Department of Commerce a

four subsidy proceedings under 

eral Maritime Board who trans

mission at the time of the reorg

control until the issuance by the
STATEMENT OF APP

FOR THE FISCAL 

APPROPRIATION

Transferred from Salarie

Department of Commerc

No 7of1J61 

Supplemental Appropriatio

Congress approved Sep

penses of the Federal Ma

as authorized by section 

USC 55a at rates fo

diem hire passenger mo

ance therefor as authori

as amended 5USC21

OBLIGATIONS AND UNOBLIGATED 

Net obligations for salaries 

June 30 1962 

Unobligated balance withdr

STATEMENT OF RECEIPTS FROM F

YEAR ENDED JUNE 301962

Duplication of records and o

Freight forwarder license f

Deposited to account o

Retained in suspense a

Total receipts from fa

Appropriation

34