For sale by the Superintendent of Do

Washington 25 DC 

Alnual

FEDERAL MA

MARITIME A

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a 

0 h

UNITED STATES DEP

For sale by the Superintendent of Do

Washington 25 DC 
UNITED STATES D

FREDERIC

W

FEDERA

RALPH 

THOS 

SIGPRID 

THoMA

MARITIM

RALPH E WILSO

WALTER C FOR
LETTERS OF 

US DEPART

F

Wa

To The Secretary of Commer

FROM Chairman Federal Mari

istrator

SuRamcT Annual Report for Fisc

I am submitting herewith th

Board and Maritime Administra

fiscal year ended June 301960

To the Congress

I have the honor to present the 

time Board and Maritime Adm

Commerce for fiscal year 1960

TABLE OF 

INTRODUCTION 

AID TO SHIPPI

Construction differential subsidy 

Federal ship mortgage and loan in

Other forms of construction aid 

Operating differential subsidy 

Aid involving vessels over 20 years 

Trade route

SHIP OPERATIONS AND REPAIR 

Oceangoing trafiic 

Charters and general agency operat

Shipcustody 

Ship repair 

RESEARCH AND DEVEL

SHIP CONSTRUCTION 

NS Sava

Advanced ship conc

Other constructio

Ship conversion and reconstructio

MARITIME TRAINING 

United States Merchant Marine A

State maritime academ

Otheractivi

SHIP SALES AND TRANS

Shipsales 

Transfers to foreign ownership and 

SHIPPING STUDIES AND REPO

Ship and cargo data 

Port development 

Labor data and labor management 

PROPERTY AND SUP

Realpropert

Warehouses 

Material control inventory and d

ADMINISTRATIVE MANAGEM E

Defense planning 

Personnel 

Organiz

Investigations and securit

FINAN

Financial relationships with contra

Accounting 

Audits 

Insurance 

Notes and accounts rece

Claims 
LEGAL ACTIVIT

Litigatio

Legislatio

Contract administ

INTERNATIONAL MARITIME AF

REGULATORY ACTIV

Conference and other ag

Rates foreig

RatesUSodo

Freight forward

Terminal tariffs 

PROCEEDINGS BEFORE HEARIN

Final decisions of the Boar

Recommended decisions of 

Pending Proceed

FINAN

EXHIBIT9

1 Balance SheetJune 3

L Statement of Operation

1959 

3 Statement of Equity of 

June 30 1960 and 19

4 Statement of Sources a

June 30 1960 

NOTES TO FINANCIAL STATEM

SCHEDULE

1 Statement of Operation

Years Ended June 3

A Summary

1960

of Operating Di

B Aid to Vessels Over 20 Year

Board Under Section 

Amend

C New Ship Construction on 

D Employment ofUSflag M

E Deliveries of New Merchan

F Merchant Fleets of the Wo

G Cash and Approved Secu

and Special Reserve Fu

1960 

Vi
FISCAL YE

Intro

The Federal Maritime Board 

were established in the Departm

Plan No 21 effective May 24 19

of the maritime laws and more 

prescribed by such laws The p

Maritime Commission The Bo

appointed by the President by a

Senate The President designa

Chairman of the Board who 

Administrator

Under the plan the Federal M

administration of the statutory 

the regulation and control of rat

of common carriers by water an

of the Shipping Act 1916 as am

tariffs and practices of common 

the Intercoastal Shipping Act 

regulations affecting shipping in 

discriminatory practices in suc

charged with the responsibility 

and terminating subsidy contra

hearings and making determin

provisions of titles V VI and V

805 f of the Merchant Marine 

The Board in respect of the 

it by the plan is independent of 

ministering other functions tra

guided by the general policies o

ever the actions of the Board 

transferred to it are final

The Maritime Administration 

Secretary of Commerce is res

execution of programs for the c

merchant ships administration 

structiondifferential subsidies 

mortgage insurance and other f

shipping and shipbuilding indu

Defense Reserve Fleet and rese

marine officers and the institut

search and development progra
During fiscal year 196

Maritime Administration 

principles of the Federal 

merchant marine as estab

as amended and related m

provide for the developmen

marine sufficient to carry 

substantial portion of the 

of serving as a naval auxili

under the USflag by cit

of the best equipped safes

by a trained and efficient c

fiscal year 1959 in bothUSfla

throughout fiscal year 196

continued diligence by the 

building program withou

with Government assistanc

tiondifferential subsidy i

mortgages and tradein a

of new ships and 2 pr

marine by enabling it to m

ernment operatingdifferen

1960 a substantial beginni

replacement programs of 

was evidenced by the fact 

in service 40 were under 

contracts for the construc

1961 The construction o

209 ships exclusive of cer

ered in the initial replace

the years 1962 and 1979 

in the initial replacement 

excess of 4 billion

Of particular importanc

Maritime Administration 

grams was the establishm

ment program to promote e

advancement in the marit

include as its primary obj

pacity of US merchant s

achieve this major objecti

research functions of the ag

tional unit with responsib

research and development 

ploying improved and ad

auxiliary machinery and e

efficiency and economy an

the extent practical b 

stowing and transporting 

mated handling of unitized 

2
managing and navigating vesse

of hull forms arrangements m

laboratory research and develop

type construction

The Federal Maritime Board 

addition to administering the f

vote undiminished efforts thro

employees in 28 installations to 

include the operation of Govern

general agency agreement con

nance of the national defense re

the custody and maintenance of 

administration of the provision

sec901fof the 1936 Act r

Americanflag operators in the 

furnishing of advisory services 

ping arrangements of exports fi

pursuant to the provisions of Pu

vestigation of discriminatory 

against Americanflag shipping 

chant Marine Academy and th

maritime schools

Aid to 

The adverse conditions exist

tinued unabated during fiscal ye

ume of traffic being moved by 

in the number of ships under co

The Government aid programs c

shipping statutes by assisting Am

their services on essential US 

the assistance necessary to assur

the obsolete ships in the Amer

modern types of ships These p

in serving the national interest 

fleet with trained personnel to 

emergency requirements Furth

tribute materially to providing 

ship construction capabilities 

the form of management and lab

Construction differential su

During the fiscal year the Fe

structiondifferential subsidy co

for the number of ships indicate

cargo ships Grace Line Inc 

McCormack Lines Inc for on

Inc for two cargo ships and 

569885612
ships These new ships w

cost of 186 million inclu

tional defense items chang

there were approved for t

lowance of credit on new co

In the detailed estimates 

differential subsidy has bee

cost of the commercial ve

Law 86 607 however it m

ators in some of these case

actual difference in cost n

this law

The total estimated con

Line ships which are bei

by Todd Shipyards Corp 

700 0 This figure inc

changes and national defen

subsidy allowance on thes

the Government will also 

amounting to approximate

in against this constructio

ships have been chartered 

construction period of the n

The total estimated co

cargopassengercontainer 

structed on a fixedpricebi

building Division Sparrow

000 This figure includes 

and national defense featu

allowance on these vessels 

ment will also pay the cos

147 000 Two vessels we

for a total allowance of05

operator for use while the n

The estimated cost of the 

which is being constructed 

Co on an adjustedprice 

figure includes an approxi

national defense features 

lowance is estimated at510

for national defense featu

traded in on the new const

The total cost of the two 

are under construction at 

Calif on an adjustedpr

This figure includes the 

national defense features 

lowance is estimated at120

the cost of national defens

sels were traded in on the n

rl
The four cargo ships for the 

port News Shipbuilding and 

justedprice basis will total ap

includes the estimated cost of 

fense features The construct

estimated at 23600 0 and th

of national defense features am

sels were traded in for a total 

back to the operator for use dur

The Federal Maritime Board 

ized a constructiondifferential 

Inc for reconstruction of the 

chased from American Banner 

was 1871 687 and the const

was 331 percent subject to 

contract was awarded to Sun 

Chester Pa

The Board also authorized 

American President Lines Lt

and reconditioning of the SS P

Wilson at a fixed price of 3400

construction differential subsidy 

work was executed with Moore 

On June 30 1960 there were 

ators applications for construc

struction of 28 cargo ships an

cargo ship to a rollonrolloff

structiondifferential subsidy in 

liner was not being actively pro

due to the fact that no appr

available

Federal ship mortgage and 

The Maritime Administration 

contracts of insurance for const

and mortgage commitments or 

banks and other lending agencie

struction of 19 ships having a 

188 893 77 as follows a Ry

10511 000for construction of a 

a mortgage loan of 10792 900 

Containerships Inc constructio

commitments of 684 900 for 

President Lines Ltd constructi

commitments of 14400 0 for 

J M Carras Inc a constructio

commitment of 11500 0 for 

Inc construction loans of 12 

of 12 million for two Mariner 
Tanker Inc a mortgag

jumboized

8

tanker h A

903 60 for constructi

mortgage loan of91100

Steamship Co construct

mitments of 2000 0 

1671 Corp a constructio

ment of 12 million for t

a construction loan of750 

million for the construct

struction loan of15300 0

000 for the construction 

was executed with Moore 

million on an existing ve

construction of seven carg

As of June 30 1960 

operators applications un

mortgage insurance aid co

ing 70 small barges at 

approximately 342 428 79 

covering estimated const

mortgage loans of279059

During the fiscal year 

XI loan and mortgage ins

with respect to two comp

In the case of Coastwise t

granted a moratorium o

aggregating 136 000 and 

the maturity date of the 

restrictive covenants runn

company assets In the R

tration made advances of 

each A second mortgage 

the first advance and an u

vance The company not

the rate of 6 percent per an

tion for making these adv

advances the mortgagee 

rangement approved by 

eight quarterly principal 

per annum during the rem

mortgage balance which 

insurance

During the year mortga

verted passenger and freig

was terminated by the m

Supply Co paid the mort

terminating the insurance

6
Other forms of construction 

As of June 301960 balances in 

13758 87 compared with 107

construction reserve funds Fo

during the fiscal year 1960 and 

funds were closed by withdrawa

fund

2

Deposits in the constru

072 421 38and withdrawals to

In addition to mandatory dep

deposits on a taxdeferred basis 

tors were authorized for two ope

As at the close of the fiscal year 1

from four subsidized operators 

deposits from 1959 free earnings 

Operating differential subsid

During the fiscal year new ope

were executed with 2 operators 

vessels The new operatingdiff

cuted with American Export Lin

Corp the former being effective 

1960 The expiration date of b

The new contract with American 

contract which was originally s

ber 31 1965 but was terminated 

31 1959

The operating differential sub

Lines Inc covering the operatio

terminated as of November 5 19

to the American Export Lines I

The operating differential sub

Lines Co with respect to the SS 

pire as of December 31 1960 was 

the provision that if prior to this 

ernment sshare of the cost of 

operator fails to contract therefo

eratingdifferential subsidy contr

made with regard to the subsidize

vessels for which the operating d

uled to expire December 31 1969 

the operating differential subsidy 

Julie 20 1967 subject to extension 

There were pending application

contracts from nine American fla

essential trade routes of I he Unite

theWorld Service Europe the F

at the close of the fiscal year the

an existing subsidized operator 

service and to make additional sai
All operating differentia

years 1947 through 1957 ha

four wage rates four sub

rates all applicable to cale

required for the years 194

of June 30 1959

As of June 30 1960 969 

subsidy less recapture h

payments on account to sub

from the date of postwar r

1 1947 through the first 

amount 152 765 was p

of operating differential su

Aid involving vessels ov

The Federal Maritime B

interest under section 60b 

as amended had authorized 

through issuance of forma

atingdifferential subsidy o

will become overage prior 

ments The actions of the 

upon the ship replacement p

subsidy contracts entered int

izations by the Board in th

Trade routes

The essentiality and US 

foreign trade routes were 

made of the service requir

These reviews made in ac

the Merchant Marine Act 

tiality on five routes the s

sential At the end of the 

routes and 3 services desc

of the United States

Ship Op

Oceangoing traffic

Throughout the fiscal y

insufficient to provide for 

nage The surplus of vess

to depress the highly com

sulted in the layup of a la

foreignflag The volume 

import during the first 9 

8
tons or 2 million tons below 

sponding period in fiscal year 

the export bulk commodities of 

ment of which was 34 million to

the overall USflag participat

improved position over the lik

More specifically during the firs

vessels moved 20 million ton

import trade or 116 percent o

188 million tons or 106 perce

corresponding period in fiscal 

tinued to cause concern to US

continued availability of la

freighters and foreign and USfl

bulk grain or petroleum with t

USdry cargo operators could n

The Maritime Administratio

other US Government agencie

the requirements of the Cargo 

Congress In the administratio

gress the Maritime Administra

Import Bank on shipping arra

the Bank sloan credits A num

flag requirement were authorize

foreignflag vessel participatio

ExportImport Bank loans

Charters and general agenc

As of the end of the fiscal y

ships under bareboat charter th

of these were traded in on cons

to be employed by the former o

the new ships are completed T

Alaskan trade During the ye

mental Libertys John Serge

Sehuyler Otis Bland which wa

one of the four ships in the Alask

At the beginning of the fisca

ment to two general agents to 

Sea Transportation Service T

employed in the Pacific area a

an experimental Liberty was e

ships remain in AISTS service 

ized from January 28 because 

Ship custody

At the close of the 1960 fisc

reserve fleets During the yea
and 228 were withdrawn 

were assigned to the various 

Hudson River 

James River 

Wilmington 

Mobile 

In accordance with sectio

of 1946 a review of the shi

with the approval of the Se

for continued rentention an

priority ships mostly of t

scrapping over a period of 

program is reflected unde

Sales and Transfers

Funds appropriated by th

the completion of 53 percen

the 891 priority ships bei

funds appropriated allowe

to the first five of the six pr

group received no preserva

year

At the end of the 1960 fis

the account of the Commo

Agriculture were moored 

to a net decrease of 78 g

the program the reserve fle

approximately 136 million b

Ship repair

There were conducted d

spections to verify the nec

of repairs to subsidized ship

were made to determine sh

under subsidy agreements 

of repair summaries from 

million submitted for subsi

performed was found to be 

Approximately 700 other 

mates were made to assure 

on ships which were a 

traded in and returned to t

Agreement c redelivere

layup d operated under 

insurance contracts and e 

tion under General Agency 

10
Research 

The importance of research 

scientific advances to improve 

nized by the agency as a wa

be made more competitive in 

1960 a major effort was und

tion sresearch and developm

reorient the program to ac

earning capacity of US me

Administration had previou

tract with the National Acade

cil to review maritime rese

planned program which wo

short andlongrange researc

tration 2 translate these 

research and development in

ties 3 delineate methods 

indicated can be carried out e

Under this contract the 

Maritime Research Advisory 

objective group of engineers 

experience encompassed virtu

The committee formed 7 a

viduals served on the commi

industry universities and G

partments The committee 

various phases of its study i

6 1959 entitled The Role o

Security which stemmed fro

study session at Woods Ho

of the committee was expecte

the title of Proposed Program 

Volume I Summary and V

In essence the conclusions 

were

1 The US merchant 

ened by a greatly enlarge

supported by Governm

improvements in such n

ments and labormanage

2 The principal aim 

should be to assist in pro

which can compete in 

subsidy subsidy reductio

ments including autom

handling systems which 

cient use of highly paid la

3 Most national secu

met through a healthy pe

566885613
4 One of the most s

marine is the high cost o

through simplification a

ment policies leading to 

fostered

5 Immediate priority 

currently available techn

to increase the commerc

fleet

6 The Maritime Adm

construction and operatio

demonstrate the feasib

feature austerity in the 

lowing a automation 

ized cargo operation 

developmental emphasis 

steam turbines

7 The physical charac

should be based on opera

functional requirements 

range research which sh

hull form structures m

8 The Maritime Admi

nuclear research appropr

for at least the nest 10 ye

ships with approximatel

voted to basic research in 

dynamics propellers and 

structures and materials 

out through outside cont

9 The Maritime Admi

lated education through 

b fellowships for adva

struction of university lab

The Maritime Administrat

and recommendations as sup

of the Maritime Research Adv

latter part of fiscal year 1960 

review resulted in a accepta

recommendations of the Com

to revitalize and implement 

consistent with the recommen

tralization in a single organ

the direction and administra

program These actions wer

policies programs and recom

the Secretary of Commerce to 

Federal Transportation Poli

ministration in carrying out 

will utilize to the major exten

12
for conduct of development w

program will be carried out b

of the agency

In the nonnuclear field the f

ing the year Dynamic Develo

hydrofoil test vehicle details a

under the section of this repor

Aircraft Corp Norden Divi

automation including the app

ship control communication s

sion equipment and other ma

correlation tests of hull forms 

of variation of vertical prisma

F Clapp Lab Inc and Marin

corrosion of ships hulls Eng

sewage treatment and disposa

Lakes Bethlehem Steel Corp 

and Trezurtha Inc for purchas

ing unit In addition the M

research facilities of the Depa

Bureau of Standards

Other significant studies be

facilities of contractors throug

included a study of marine c

keeping instruments study of 

development of vessel ratproo

turbine ship service generator 

ities for studying the hydrody

underwater bodies

In the nuclear ship field t

Atomic Energy Commission co

work aimed at achieving the de

ered merchant ships which wo

eign commerce During the ye

Todd Shipyards Inc for the c

sel and for the maintenanc

Savannah

Contracts initiated in prior 

completed in fiscal year 1960 i

of a nuclearpowered submarin

powerplant installations in me

of petroleum and petroleum p

of nuclear powerplants and c

ment of methods for shielding 

The Maritime Administration 

Commission in the conduct of 

plant for tanker application w

ized water reactor and the dire

concepts in a 45000 DWT tan
was submitted to the Joint 

ance with section 113 of Pub

The General Atomic Divis

tinued work toward the dev

propulsion system During 

portion of the project centere

oxide moderated reactor sy

struction The results of t

facility as part of the develop

Ship 

NS Savannah

The NS Savannah the wos

being constructed under Pub

on July 21 1959 A satisf

been achieved since that date 

was 98 percent complete ma

cal 74 percent complete

The Maritime Administra

acting within their respectiv

efforts to accomplish the pl

commercial service by the fa

Major accomplishments d

a design development an

equipment in the ship b c

testing at zero power in a c

the core is now ready for in

of test procedures and condu

d finalization of plans for 

service

During fiscal year 1961 

plished a nuclear fuel lo

extending over several mont

tics of the nuclear plant c 

reactor to its designed leve

sary to provide thorough t

ditions d extensive tests 

June 1961 and e operatio

ice by the States Marine Li

tration as its general agent f

A number of activities aim

Savannah and subsequent n

currently with its design a

year prospective Savannah 

training in reactor engine

received training in nuclea

with the management of nu

out under a contract with t

14
builders of the Savannah s

training followed by onthejob 

ford Wash Fort Belvoir V

Station Idaho Falls Idaho 

which duplicates the Savanna

tion NS Savannah engineers 

fiscal year 1961 Concurrent

was given toward further enh

nah and other nuclear ships 

ministration has worked close

Public Health Service Americ

Guard in the conduct of env

ment work aimed at providin

to assure the maximum degree 

The acceptance of the NS S

ered merchant ships in intern

tance to the Maritime Adm

agency in this area are reflec

International Maritime Aff

Advanced ship concepts

As part of the research and 

design development and con

awarded on January 12 196

affiliate of Grumman Aircraft 

vides for construction of a c

hull construction propulsion 

As a carrier on short voyages 

ing about 70 passengers The 

foil seacraft are as follows 

placement 80 tons propuls

knots

Other construction

During the year the total 

struction conversion reconst

owned shipyards decreased fro

beginning of the year 21 new 

structed were completed D

awarded for 18 new vessels a

Hence at the end of the year 

conversion or reconstruction 

mately 732 8 million Of th

value of approximately 451 

operators replacement progra

At the beginning of the fisc

under Federal Maritime Boar

Of these four were complete

vessels for Lykes Bros Steam

V Merchant Marine Act 193
Maritime Administration ac

gress 1st Session and a hy

the Coast and Geodetic Surv

During the reporting perio

Administration contracts w

procedures for the construct

and a hydrofoil seacraft for 

tion and 13 cargo vessels fo

grams Further details are r

Construction differential su

sidered as to the applicab

amending sec 502 f of the 

but none were made under p

thority A summary of new 

is contained in Appendix C

Ship conversion and reco

Contracts were awarded d

chant Marine Act 1936 for 

two passenger vessels the SS 

Wilson for American Presid

sel the SS Atlantic for Am

vessels as well as two cargo 

Grace Line and one cargo v

dent Lines contracted for p

ered to the owners during the 

Mari

United States Merchant 

The US Merchant Marine 

der the provisions of Public 

during the fiscal year an ave

completing the 4 year course 

US Merchant Marine of

as third mates 98 in numb

number of ocean ships the

grees and if qualified com

Reserve

There were 2400 candidate

by Members of Congress 340 

the entrance and physical e

by Members of Congress pur

has since this practice was i

the national representation b

On March 29 1960 the T

visory Board to the US Me

the Academy The Advisor

691 84th Congress was comp

16
Bailey dean of instructions 

dean School of Humanities a

tute of Technology Guy R C

tute Harvey H Davis prov

Lapham chairman executive 

A Mason dean School of 

versity Edward Reynolds 

University Discussions were 

the Superintendent of the A

ments and staff officials At 

among other things a reite

the entering class be increas

sideration be given to modern

and science laboratories c 

establish a program under wh

officials would have opportu

they so desire with those h

temporary employment arran

is very appropriate that cade

and experience on the operat

where possible the NS Sava

testimony given in behalf of 

of George Washington Unive

House Committee on Mercha

with pending legislation af

administrative personnel at 

The 16th Congressional B

inspection of the Academy o

sisting of Senators Warren 

Norris Cotton New Hampsh

Pennsylvania and Represent

lina ex ofacio Victor L A

York Thomas N Downing V

Herbert Zelenko New York 

called attention to recommen

for prompt and favorable ac

Board srecommendations inc

definitely needed to clarify the 

2 a member of both the H

mittees should attend the an

3 Pings Point cadets shou

to that provided for the cad

public information service be 

Academy and the public 5 

communication between the f

Maritime Administration on 

faculty staff 6 the Directo

directive on general policy wh

of cadets being drafted into 

the Academy 7 adequate 
training in nuclear engineeri

later than the nest budget y

vided of upwards of 4 milli

modernization of the plant a

that the Academy can be op

parable to the other Federal ac

The construction of a mem

pleted with the exception of i

mately 600 0 about 200 

from the operation of ship s

World War II and the rem

tions under the provisions of P

the fiscal year 100 0 was ap

furnishings and other necess

worship for all religious den

end of the current fiscal year 

American seamen lost during 

State maritime academies

The State Maritime Acade

and Hyannis Mass and the 

Fort Schuyler NYhad a 

cadets for the fiscal year Pu

mately 1090 of these cadets re

each for the purpose of defray

subsistence and each school re

ment of 75000 for use in the 

There were 293 graduates wh

officer licenses as third mate

ships from the US Coast G

commissions as ensigns in the 

graduates of the New York 

bachelor of science degrees

Other activities

The Maritime Administras

was continued with three ra

York New Orleans and San 

initiated pursuant to the rec

Sea Study of the House Mer

HR 2969 January 3 195

November 1957 there have be

of 4000 certificates of succe

radar fundamentals operatio

analysis of radar informatio

marine officers in atomic bio

firefighting and damage con

supported jointly by the Ma

Sea Transportation Service 

New Orleans and San Franc

18
censed personnel and 981 ot

since it was inaugurated in Se

Ship Sale

Ship sales

During fiscal year 1958 th

the Department of the Navy 

of the World War II Libe

Reserve Fleet Subsequent re

of the Navy provided for th

type ships and 39 other types 

of the Merchant Marine Act 

tive sales price of8684 158 

ships were sold for scrap a

poses The sale of these sh

fiscal years 1958 and 1959 h

to the Government of 18 mill

Upon declaration of the D

phibious Force flagships we

ships which were converted 

version for civilian use were 

152 84th Congress 2d Session

Transfers to foreign own

On January 25 1960 acha

to transfers ofUSowned sh

Prior to this action the pol

dry cargo vessels would be a

ship or registry unless the US

a replacement vessel or unles

total loss further all transfe

required to be to the flag o

ownership being vested in eit

of Panama Liberia or Hon

through stock ownership Un

ships were classified as over

transferred to foreign owner

to the nationality of the forei

that the foreign buyer and co

the Maritime Administration 

of the terms and conditions 

based upon a consideration th

of age are of slow speed h

defense values and are cons

quate from a commercial sta

larger vessels now in worldwid

In view of the adoption o

transfer activities greatly inc

5098850i 4 
On the other hand there was 

eignflag vessels approved for 

there was only one trade out 

volved construction of two t

USflag operation and the tr

eign ownership and registry 

sell ships to aliens for scra

granted for such sales were s

contract secured by a perform

ship within 18 months and n

of countries within the socalle

Approvals of applications 

andor registry of 990 vessel

pursuant to sections 9 and 37 

tion approval was given fo

shipyard for foreignflag ope

including the 1 constructed 

1000 gross tons and over an

vessels and 19 miscellaneous 

The remaining 931 were of 

barges fishing craft and pleas

Fortyfour charters of US 

approved by the Maritime 

affreightment and voyage a

from Ito 20 years

With respect to transfers p

viding for continuing contra

tration there were authorize

flag of 67 ships 63 from 

ownership and flag and 4 fr

ownership and flag b s

without transfer of flag c 

foreign countries d transf

2 ships and e approval o

3 ships under effective USc

Shipping S

A considerable number of s

and a variety of reports pre

nificance in the fields of shi

ports were utilized in hearin

Maritime Board Special re

to international bodies or w

such as the Permanent Tech

of American States Planni

Intergovernmental Maritime 

ternational Atomic Energy 

20
Of particular note was a c

the simplification of shippin

and international concern A

Administration chaired the S

tion which conducted a preli

on the subject to the Intergo

ganization Council at its mee

Ship and cargo data

There were collected and pr

clearances of ships operatin

United States both United S

less than those received in the 

oceangoing traffic Data on 

US steamship companies op

1959 were prepared for us

differential subsidy purposes

The Handbook of Mercha

cal Analysis of the World sM

the year Among the regula

are those shown in Appendix

Port development

In cooperation with the De

neers for Rivers and Harbors 

No 20 the port of New Orle

and Texas City Tea No 24 

the port of Corpus Christi Te

At the close of the fiscal y

under revision with the Ma

processing of material on port 

a single volume for each of th

Two volumes dealing with the 

scheduled for completion in f

will be confined to the econo

published by the Maritime Ad

series heretofore published th

the Board of Engineers

Labor data and labmanag

Seafaring employment opp

merchant ships of 1000 gross t

1000 jobs during the fiscal ye

1960 In only 2 instances h

recorded since 1925 once wh

shipping in the closing month

estimated 48500 and again in 

was recorded as 44330 Ship

yards capable of constructing 
of almost 3 percent in produ

June 30 1960 as against 525

generated by the Maritime A

placement program showed a 

to 9565 or an increase of 82 

industry reflected a loss of 61

45 percent

In contrast to the relative

management relations existin

discord in both shipyard and 

strikes handicapped ship con

Longshore unions and steved

Texas were involved in a s

which ordered resumption o

during an 80 day cooling o

board of inquiry and c a s

and Conciliation Service to 

the period covered by the in

the major US Great Lakes 

a 3year contract practicall

throughout the area

The collective bargaining 

not terminate until 1961 Ac

arbitration proceedings as pr

tions failed to resolve the is

unions created complicated in

and increased activities in th

Transport Workers Federat

picketing and organizing for

Prope

Real property

The real property holdings 

reserve shipyards at Richmo

nals at Hoboken NJ and N

Baltimore Md Norfolk V

and Yokosuka Japan rese

Fla and the Merchant Marin

fleet sites at Tonkin Cove NY

Hall Va Beaumont Tex 

Olympia Wash

The Maritime Administra

ating its real property hold

and future need and mainte

a a major portion of the 

was sold for a return to the 

savings in maintenance costs 

the reserve shipyard at Ric

0
rental of 200 0 plus an an

40000 and c certain oth

property were continued with 

tion to maintenance of the p

the Government

Warehouses

In fiscal year 1960 the Ma

revised warehousing policy h

of a program primarily for 

ondarily to provide services fo

revised policy recognized a 

of the priority ships in the re

b necessity to retain machin

use on privately owned ships 

for mobilization purposes an

quantities of ship repair and 

warehouses which may be req

base ships or for emergency i

types of ships in current ope

of the new policy plans were 

in the warehouse stock level

installations from 5 to 3 to 

and storing at the reserve fle

mobilization base ships in the 

year 180 ship sets were contem

fleet installations and to place 

of private repair yards to t

storage cost to the Governme

warehouse inventories includ

totaled 40789 975 a decrease 

Material control inventor

A number of contracts were 

lease of Governmentowned m

in defense contracts or in s

In addition to the leasing fe

coverage or bonding to assure 

condition as received less ordi

tion costs borne by lessees R

mately 200 0 for the fisca

Marine equipment on loan 

ernment agencies at the beg

51375 Equipment was lo

104 825 and at the end of 

was valued at 14867 Us

operators during the year amo

Excess and surplus person

acquisition value of4598 341 

ministration This amount i
of property valued at 160 

erty valued at 236 Prope

of1082 213 was disposed o

without exchange of funds 

was destroyed or abandone

of3511 932 was sold or tr

with exchange of funds for 

There were 85 ship and 

ventory certificates for co

amount of 14948 as accou

payable Certificates of ov

the amount of 260 393 as ac

payable

Administr

Defense planning

Continued efforts were dir

ning In this connection th

ment of Defense the Atomic 

supporting agencies continu

Beadiness Planning Program 

mand levels of defense mate

in times of grave emergency 

the Assistant Secretary of D

izes and authorizes plannin

an emergency resulting from 

to a fringetype war in wh

tively undamaged The pro

tion enlists the active partici

as well as 140 privately own

In another area the agency 

under formal delegation fro

lization of responsibilities 

These activities included th

curred in by the Departme

containing port control func

control organization and e

postattack This Manual 

trol of United States Ports 

time Administration was d

agencies and to those segme

has been demonstrated

In addition to the foregoin

phases of defense planning 

into the Maritime Administ

responsibilities with respect 

USflag merchant fleet as to 

tion of all such items unfeas

ingly most activities in this 

24
report as appropriate A de

incorporated in the Annua

Defense Production

Personnel

The composition of the thre

affected by two voluntary re

during the year On April 1

fornia ChairmanAdministr

President which was accept

Vice Admiral Ralph E Wils

the President on May 2 1960 

Board for a 4year term fro

was confirmed by the Senate 

Chairman of the Federal Ma

July 1 1960 and on that da

istrator Ben H Guill of T

4year term expiring June 3

1959 Mr Sigfrid B Unand

the President as Mr Guill ss

approved by the Senate on A

term expiring June 30 1961 

who was reappointed by the 

consent of the Senate as a m

for the 4year term expiring 

Chairman

During the year ending Ju

by a net reduction of 1 positio

to 2921 on June 30 1960 

thus appear stable there 

program areas throughout th

creased activity in Reserve F

planted attrition in administ

duction of staff at Vancouver 

tions and increased level of 

accounted for an increase of 

in the Reserve Fleet program 

caused by the layup of vess

of the Navy

Organization

In the interest of providin

its work programs during the 

tion effected as were necess

of functions The principal o

lishment of the position of 

with responsibility for the dire

agement programs and act iviti

the Maritime Administration 

management internal audits 
and investigation and secu

Research and Developmen

unit all research and develo

istration c reorganizatio

alinement of functions so as 

of common carriers by wat

foreign trade of the Unit

terminal operators with the 

statutes and d reorgani

resulting in the establishme

legal matters involving Fed

atingtype contracts as distin

and regulatory matters as d

Investigations and secur

The Federal Maritime Bo

activities during the fiscal y

investigative workload Th

available cargo brought ab

plaints of malpractices on 

forwarders and other perso

gressional hearings relative 

referrals to the Board of d

newly acquired investigators 

plaints direct from the indu

an ever growing number o

industry interest and becau

through the investigators as

and New Orleans areas D

where it was determined tha

the regulations was obtained 

held and Board Orders wer

close of the fiscal year the p

to 119 cases of which 78 ca

offices of the Board to deter

cases where violations were 

1916 the Board sfindings we

for prosecution The Depa

action in another referred ma

The Security Program wi

the Federal Maritime BoMa

accordance with the provisio

Financial relationships w

Activities in this area in

conditions in the shipping i

tankers having mortgages i

26
XI of the Merchant Marine 

arose primarily from more fre

for protection of the Governms

necessitated considerable nego

past present and future statis

larly in determination of abi

burdens insured by the Govern

Accounting

Accounting operations were 

accordance with principles an

troller General of the United 

Federal Maritime Board and M

in the exhibits and schedules f

Of the 51 agents under Na

originating in 1951 48 were 

accounts of 37 had been close

cuted with 23 of the closed ag

the Maritime Administration 

operation of the nuclear ship N

Audits

Under operating differentia

subsidy accountings were com

for 9 subsidized operators co

through calendar year 1956 r

of the final 10 percent of accru

penses eligible for subsidy e

indemnity insurance have bee

dar year 1958 Wage expense

audited for calendar years 19

indemnity insurance expenses 

These audits permitted paym

operating differential subsidy 

bareboat charter agreements 

awaiting settlement of litigate

spect to ship construction and 

on a current basis Audits co

disclosed approximately 300 

Government

The balances in the statuto

as of June 30 1960 aggregated 

tively andare set forth by op

amounted to 169 000 888 and 

beginning of fiscal year 1960

In addition to mandatory 

mitted with approval of the 

untary deposits from earnings 

the statutory reserve funds on 

5169885615 
year voluntary deposits ag

proximating 2720 00 wer

Insurance

The war risk insurance p

Merchant Marine Act 1936 

tional 5 years to September 

July 31 1959 During the 

risk insurance program 380 

sued On June 30 1960 b

lows 1322 war risk hull 

and 1015 war risk second s

gram net binder fees and b

ceived and a total of 1642 

which 129 954 was paid to t

During the fiscal year th

collect monthly premiums o

written as provided by reg

gram to June 30 1960 92 w

issued and premiums total

insurance on cargoes in the 

mercial insurance not be ava

Of the 27 contracts execute

main in effect

At the request of the Sec

Transportation legal liabi

mium to a maritime contrac

gregate of all claims arisin

has been in effect continuou

insurance in the required am

renewed for another year c

ment provides for indemnif

for all losses paid by the Ma

have been reported

Under the Maritime Adm

marine and war risk insura

tinued to be assumed on its 

men sinsurance written at th

without premium and on a 

20 Navy contractoperated 

months under this arrangem

made and approximately 5

claims no claim payments 

this plan a net premium sa

estimated at 58100

As a result of negotiation 

nity risks was renewed wit

Insurance Co of Los Ange

28
operated by general agents of 

the Military Sea Transportatio

During fiscal year 1960 und

time protection and indemnity 

covered from underwriters to 

of June 30 1960 the commercia

as a reserve for the settlement o

The Maritime Administratio

newals thereof obtained in com

terers and subsidized operator

Kind of insurance 

Marine Hull 

Marine Protection and Indemnity 

War Risk Hull 

War Risk Proteetim and Indemni

Notes and accounts rece

Of the balance of accounts 

approximately 18 million an 

resents items on which active 

The remainder Was made tip o

at the time of final accounting

of Justice accrued constructio

of ship construction matters p

and accounts on the books of th

agents Of billings made clue

only 5193 101 or less than 1 p

miscellaneous debtors exclusiv

the end of the year This outs

totaling 35i96 on which c

other basic determinations

Clairns

The following reflects the 

Admiralty Act luring the yea

was claimed were settled in f

and seven claims upon which 

Igainst the Government for788

Legal 

In addition to the specific 

services and opinions were furn

the Maritime Administrator an

istrative offices of the agency i

problems involved in all of its 

were maintained with represe
other Government agencies 

the administration of the m

and the administration of p

and liaison were conducted 

ments on matters of internat

Litigation

During the fiscal year t

involving determinations a

in its regulation of rates ch

in the foreign commerce of 

domestic trades and in the a

subsidy program under the 

such cases were before the 

of the period which challen

by the Board under sectio

orders call upon carriers to 

the Board Cases before th

the following Continental 

Maritime Board in which 

that petitioner misclassified 

sion that the misclassificat

of section 16 Shipping Ac

States v Federal Maritim

venor in which the Cou

district court and set aside 

Line a subsidized carrier 

Pacific coast ports and IIaw

for further proceedings on 

sion to Pacific Far East Li

policy of the Merchant Mar

denied petitions for certio

Matson and Empire Sta

Inc v United States and 

Court of Appeals DC C

the petition for review of a 

loading and unloading reg

ators in the port of New Yo

Claims under the Merch

comprise a substantial por

of charterer sclaims agains

of seven new libels during 

reactivation expenses incu

These

2

plus 13 libels carried 

385 452 in claims against 

claims 1 new suit was file

against the Government fo

under postwar charters of 

tuted by the Government 

hire Charter hire claims 

30
the Government and an estim

In 14 of these cases the US 

1960 that a retired judge had 

sion en bane adverse to the G

were remanded to the Court o

new suit was also filed for re

the Merchant Marine Act 19

one of the principal issues in 

taken from a decision in favo

a payment under protest does 

the absence of conditions mak

libel was filed claiming refund 

Domestic Trade Addendum

With respect to ship sales li

the adverse decision to the Gov

Steamship Co case involving 

settlements the Government a

claim for5317 724 which is 

remaining undecided at the en

ing 1390 98 A decision gra

by the court of claims on Jun

conditions imposed by this a

two similar suits were pendin

sions against the Government 

in 3 of the 14 suits by citizen

amount totaling 21939 7 ca

tively settled by the agency on 

1 suit of this type was volunt

3 similar cases amounting to 41

cases in the court of claims 

foreigners was voluntarily d

total of 2417 in the two pe

New York Supreme Court re

to the Government in a suit t

foreign buyer and the Govern

full similar claims totaling 569 

proximately 75 claims in this ca

Significant developments in 

following settlements a clos

zation proceedings resulting i

ment of its claims a final paym

the Government ssuit to forec

vessel having been recovered 

100 0 having been made to 

Inc former owner of the ves

United States v Mer ittCha

the value of the Government ow

ton which was destroyed by fir

ernment The case of United 
suit for freight and genera

for the Soviet Governme

shipping maritime admir

governments arising during 

ment to the United States 

all accounts pertaining to 

to the Soviet Government

Legislation

Testimony statements an

andor reports and recomm

and the Director Bureau o

legislation enacted into law 

Resale of ships to China PL

Marine Act 1936 to exten

PL86518 extension of 

30 1961 PL86542 au

sidized warbuilt vessels fo

86575 prohibition of the 

rebuilt with foreign built m

maximum constructiondiffe

cost PL 86607 Simil

time Administration throug

statements or reports on som

relating to licensing of frei

board Interstate Commerc

and the Civil Aeronautics B

and joint rates for Alaska 

of advances by the Secretar

ernment insured ship mortga

trative enrollees at the Merc

Contract administration

A voluminous number of c

ments were drafted and exe

in other sections of this rep

tions of executive and admi

interpretation of statute and 

Internation

The Council of the Interg

ganization IMCO a 16 na

of carrying on the functions 

sessions of the Assembly me

1960 These meetings atten

ing as the US member to th

of resolving certain adminis

tionships with other internati

32
Members of the Maritime 

panels set up under the Com

paratory to the Safety of Lif

don during MayJune 1960 

British Government The s

as delegates and advisors to 

ing construction lifesaving 

nuclear power and the Load 

the Conference will be reflect

vention for the Safety of Lif

lations for Preventing Collis

for ratification of the same 

treaty

The Maritime Administra

of State in the preparation o

sented before the Internation

AprilMay 1960 with resp

mental Maritime Consultativ

concerning the constitution o

tee The Court rendered its 

position taken by the United 

that the Maritime Safety Co

not constituted in accordance 

that under the Convention 

have been elected to that Co

eral Republic of Germany a

nations

With respect to the opera

in international commerce 

ing the United States atten

the International Atomic E

March and August 1960 for 

sentatives of other governme

an international convention c

of nuclear incidents In ad

Administration a particip

Maritime Committee in dev

vention governing third pa

powered vessels and b att

and meetings with represent

purpose of developing bilate

the NS 8 araP9yih in their nat

The 12th fleeting of the 

the North Atlantic Treaty O

April 1960 The Maritime A

ing while the Deputy Mariti

gation The meeting was att

the NATO nations as well 

Naval Commands and the in

Maritime Administration wa
Group of PROS which met 

meeting of the Senior Civi

NATO in Paris in November 1

The Maritime Administrat

of State continued to combat 

ernments which deny equality 

shipping In this connectio

proposed order establishing a

natory differential establishe

commercial cargoes shipped 

bian flag Before this prop

however the Government of 

differential

In other areas of internatio

ministration representing the 

nical Committee on Ports s

international interest to the 

to member nations of the Or

the request of the Secretary 

appointed a Maritime officia

tional Commission and Pe

the Permanent International 

c the agency continued to 

State in providing supervisio

nationals training in this cou

ees of the International Coop

quested by the International 

is currently participating in 

zation of the Merchant Mari

of Indonesia as well as a sim

of the Republic of Turkey

Regula

The Federal Maritime Boa

rates services practices and 

in the domestic and foreign c

operators freight forwarders 

ping statutes Added impetu

alleged violations of the ship

of the Antitrust Subcommitte

of Representatives and the i

ports of alleged use of unfair 

tariffs misbilling and miscla

bating aresult of the inte

steamship lines to obtain a 

market

In this connection the Boa

of the Shipping Act 1916 re

34
tain types of agreements an

foreign commerce of the U

rules a requiring termina

b requiring common carri

the United States to file inb

of public distribution of fre

reports with respect to any 

charges less than those ass

tions and c prescribing a 

agreements entered into by 

and the Board sapproval un

The Board sauthority to is

challenged by many United 

of protests through diplom

ceedings and requests for fo

these matters were unresolve

The BoardAdministratio

action to strengthen interna

responsibilities This action 

fice of Regulations and exp

District Regulations Repres

San Francisco and expansio

in order to assure closer su

and organizations subject to 

were instituted of policy fu

sults of which will produce 

tion of the Board sregulator

Conference and other ag

The Federal Maritime Bo

the 1916 Shipping Act 60 

tions and 17 agreement canc

ment modification Among 

were three terminal conferen

areas ie South Atlantic p

delphia port area and one 

trade between US Great L

Caribbean ports

The Board on its own m

travel agents connected wit

the joint agreement between 

ference and Pacific 1Cestbou

agreement is true and comp

in a manner conforming to t

c an agreement of the m

Gulf Freight Conference fo

system to determine whethe

existinn law and d an ag

pany and The Boston Mari

whether certain terminal op
proved agreement in violatio

1916 and whether such agreem

under the provisions of section 

Orders were issued to three 

bers thereof to show cause wh

be canceled it appearing that 

in each of the trades Two o

time for response to the othe

Rates foreign

A total of 32503 rate filing

received representing an incre

year There were general inc

to 10 percent in most trades w

in support thereof Examina

able manpower resources were 

tions and classifications which 

for potentially discriminatory 

lawful tariff practices A re

rates for competitive commod

tion with a study of ways and 

status of American manufactu

ber of rate studies were made 

ceedings before the Board or 

on its own motion instituted 

misclassification of diatomaceo

New Orleans to Europe and S

products shipped from the Uni

Venezuela Docket 912

RatesUSoffshore dom

A total of 3675 freight an

during the year Thirtyfive 

to comply with the appropria

tions Eightyseven applicatio

tic offshore trades for special 

and fares to make other tariff 

notice or to waive certain Bo

found good cause for and ap

while 12 of them were denie

applicant

The Board on its own mot

gations in order to determin

during the year were just and 

tween Atlantic Gulf and P

Coast and Alaska Atlantic a

Pacific Coast and Puerto Ric

the foregoing rate investigatio

made in the rates under invest

ceeding unless special permiss

36
Furthermore in instances w

pended the Board ordered th

collected under the rate incr

paid the freight any portion 

to be unjust or unreasonable 

own motion an investigation 

lawfulness of single factor 

pickup within port areas in t

Freight forwarders

The number of ocean fre

existing requirements increas

of the annual publication of 

been held in abeyance in the i

of new legislation andor ind

may require each registered 

register in accordance with n

Board

Proposed legislation requ

license and further regulate 

passed the House of Represe

1960 the Senate Interstate an

an amended version of the b

tion was on the Senate Cale

fiscal year

Terminal tariffs

A total of 2459 tariff filin

extent possible with available 

over the previous year The

at the beginning of the year 

were brought to a satisfactor

are now 13 pending

Of particular significance 

Terminal Association Termin

proved agreement which inc

all truck loading and unloa

terminal operators This pro

plaint Docket 902 with the 

a separate agreement which h

tion 15 of the Shipping Act 

the Eastern District of Penn

tion against enforcement of t

modified its exclusive truck lo

pected that the court injuncti

missed Also of importance 

portation Association Inc an

Inc v American Export Line

it was alleged that the reissu

approved agreement In the 
stated that it and its prede

issuance and modifications o

agreement are not new agre

requiring prior section 15 a

Transportation Association 

sion with the US Court of 

The Board initiated on i

871 and 879 into the practice

East Line Trans Oceanic 

Howard Terminals at the p

respectively and allowing f

Commission at the port of Lo

The Board sinvestigation 

charges services definitions 

at Atlantic and Gulf ports w

Proceedings Be

At the beginning of the fi

pending and there were file

and 24 subsidy cases 1 case 

proceeding by court remand 

the court 1 is pending de

Marine Act 1936 1 is pendin

1 case is pending reconsidera

of 957 cases The Board and

on 15 cases the Administra

hearings and final reports w

were disposed of by the Boa

ducted 36 hearings and is

decisions

Final decisions of the Bo

Docket No 807 Atlantic d G

Charges The Board found the 

of the United States and Puerto 

Increase of 6 cents per cubic foot 

and as further increased by 12 

reasonable

Docket No 827Philip R Cons

Docket No 835 Flota Mercante 

from Ecuador to the United State

v Flota Mercante Grancolombian

operation of vessels between por

ports on the north Atlantic coas

the west coast of South America 

carrier by water and therefore s

Act Respondent spractice of co

vessels operating between ports i

coast of the United States to on

qualified banana shippers found 

section 14 Fourth Shipping Act 1

and disadvantageous in violation 

38
booking arrangements of periods n

to just and reasonable regulatio

handling stowing transporting 

respondent srefrigerated space w

banana shippers found not to 

sections 14 Fourth and 16 First S

were held open on question of repar

Docket No 830Agreements No

Rouge Port Commission and Carg

Baton Rouge Port Commission an

elevator to operate as a public term

certain exclusive and preferential 

approval requirements of section 15 

Agreement No 8225 prior to filing 

of section 15 Shipping Act 1916 b

discriminatory or unfair or detrim

or in violation of the Shipping Ac

Agreement No 82251 a modifi

monopoly in grain stevedoring in 

detriment of the commerce of the 

unreasonable practice relating to th

in violation of section 17 Shippi

Board

Docket No 833Hfaatschappij 

Anchor Line Limited et alDoc

Anchor Line Limited The Bristol 

No 840 Petition of Anchor Line 

Docket No 843In the Matter o

Ltd The Bristol City Line of Stea

Line at al Against Approval T

in Docket No 833 upon finding th

engaged in concerted rate action c

or a conspiracy to drive complai

United Kingdom trade in violation 

1916 In Dockets Nos 834 and 84

Nos 8400 and 8440 in substantia

existing approved agreements wo

United States The agreements w

discontinued In Docket No 840 

has power to act under the 1916 S

8130 and 8140 covering the trades 

Lakes ports and ports on the St 

and New Brunswick on the one 

the other notwithstanding that th

merce of nations other than the U

have not been shown to be detrim

or otherwise in contravention of 

Docket No 867 Proportional C

Upon finding proposed proportion

tobacco from New York NY Por

to be unduly preferential of the 

the port of Baltimore in violation 

ordered the proposed rates cance

Docket No 557States Marine 

Application for OperatingDiffere

United States Pacific CoastFar E

Mediterranean Service Petitions 

the Board on February 18 1959 

Line Inc US Lines Co Americ
ship Co Inc and the Commis

Oreg were denied by the Board i

Docket No S57 Sub No 3

Section 804 Merchant Marine A

shown under section 804 Merch

andor operation by Global Bu

specified bulk trades 2 owne

of certain Mexicanflag vessels 

La Paz Mexico 3 chartering 

for use as lighters in the Persia

to act as husbanding agent in th

The Board granted waivers of 

notice to the operator

Docket No S57 Sub No 4

Section 805 x The Board on 

under section 805 a of the Ac

tinuance in the event an operatin

Lines Inc for the operation of t

Inc in the transportation of c

domestic commerce between US 

and Atlantic ports on the other 

in unfair competition to any pe

in the coastwise or intercoastal 

policy of the Act

Docket No 567T J McC

805 a Permission The Board 

carrying service between Detroit 

by T J McCarthy Steamship Co 

ential subsidy contract does no

firm or corporation operating e

ice or is prejudicial to the objec

for the continuation of such s

granted Continuation of a bulk 

ently constituted between Unite

an operating differential subsidy 

dicial to the object and policy o

tinuation of such service in the 

supplemental report the Board 

of bulk service limited to coal a

until December 31 1961

Docket No 572I8thmian L

tial Subsidy AgreementDocke

Application for Increase in Su

Docket No S75American Exp

fags on Trade Route 18 Centra

ingDifferential Subsidy The B

Marine Act does not interpose a 

Inc for the operation of up to a 

Westbound Round theWorld se

sailings per year was barred U

ice on American President Lin

concluded that service by vessel

accomplishment of the purposes 

not be operated thereon Sectio

ingdifferential subsidy contract 

additional vessels on such servic

registry from the Red Sea and 

fornia ports was found inadequa

fication of American President L

the operation of its existing Wes

US flag service to India Pakis

40
ings in the existing service of Isthm

extent of 8 sailings per year and th

policy of the Act additional vessels 

of the Act does not interpose a ba

existing India Pakistan and Ceylo

tion of additional vessels thereon 

Section 605 c does not interpose a 

its existing Persian Gulf service o

Steamship Corp nor American Ex

the Persian Gulf service and servi

adequate to the extent of 20 sailings 

Section 605 c of the Act does no

the operation of such additional 

the three applicants may be gran

sailings must be made under sectio

under section 805 aof the Act w

lantieGulfHawaii service and St

lumber service they being found n

Act

Docket No S73Waterman S

DifferentiaZ Subsidy Section 60c

found that section 605 c Merch

bar to the granting of an operatin

Steamship Corp for the operation 

GulfUK and Continent service 

border and ports in the United K

of Portugal with the privilege o

outbound only at North Atlantic p

north of Portugal but not inclu

42 sailings per year 2 Gulf 

Gulf ports Iiey VestMexican bo

fornia ports to Far East Japan 

of Asia from Union of Soviet Socia

from Par East to US Atlantic an

Pacific coastFar East service b

ports and ports in the Far East 

from California ports and 1 sailing 

ports the third monthly sailing us

and Oregon ports alternating ea

42 sailings per year 4 US N

North Atlantic ports MaineVirgin

north of Portugal but not inclu

30 sailings per year

Docket No S781mcrican Pre

805 xMerehaat Harine Act 193

was granted American President 

superliner SS President Washi

Hoover in the California Hawai

tions and grandfather rights of 

of section 80e aregarding the o

in the CaliforniaIlawaii passenger 

Docket No S81Prudential S

Differential Subsidy on Trade Ro

service on Trade Route No 10 by 

the meaning of section 605 cMer

ment of the purposes and policy 

should be operated thereon Sec

granting of an operatingdifferen

operation of i7essels on Trade Ro

ports in Mediterranean Sea Black 

Spanish and French Morocco
Docket No 583Gulf So

Under Section 605 e Merchan

the additional service proposed 

between US Gulf ports other t

should be permitted since the se

Gulf ports other than New Orl

Lone on the other and in the n

to New Orleans was found inad

bar to the granting of the pe

Steamship Co Inc for such s

by vessels of US registry in th

Panama Canal Zone except for 

in its refrigerated vessels was 

of the purposes and policy of t

South American Steamship C

tion 605 c does not interpose 

Fruit Co refuses to carry in 

Orleans to the Panama Canal Z

cargo movement is granted by the 

Applications under section 8a

588Oceanic Steamship Co D

Docket No 597American Pre

Lines Inc Docket No 5100

102Farrell Lines Inc Dock

Docket No 5108 Moore McCo

Lines Inc Docket No 5110 P

MooreMcCormack Lines Inc a

Inc The foregoing dockets all 

permissions under section 80a

trade each operator sapplicatio

in docket 5110 which covered o

granted since it was found that 

of the permission was found no

firm or corporation engaged ex

and not to be prejudicial to the 

1936

Docket No 5105 American 

tion 805 x Merchant Marine 

the examiner sdecision as its 

under section 805 afor the ope

of tanker vessels by Signal Oil 

of for the carriage of petroleum 

wise service since granting of 

competition to any person firm o

wise or intercoastal service and n

Merchant Marine Act 1936

Special Docket No 242etc

examiner sdecision became the 

cation of respondent to pay rep

the rate charged by respondent o

Beach Calif to Seward Alaska 

to be unreasonable

Recommended Decisions 

Docket No 765Investigation 

ments of Ocean Freight Forwarde

of General Order 79 116 CFR 2

and Agreements of Common Car

Brokerage or Other Fees to Oc

It was found in these proceedin

42
performance by forwarders of forw

charges to shippers and receipt o

shipments constitute indirect rebat

Act 1916 that performance by ca

compensatory charges to shippers 

section 16 Second of the Act an

shippers in varying amounts adding 

some cases and not in others and 

noncompensatory charges for some 

reasonable preference to some shipp

able prejudice or disadvantage in v

engage in unjust and unreasonable 

Act Violations of the Act as foun

forwarding services and regulation

of such violations are proposed for 

riers were found to have entered i

ments or arrangements providing f

apportioning of earnings or coope

approval of the Board in violation 

desist order should be entered Th

No 831 that agreements between 

or limiting brokerage to less than 

be detrimental to the commerce of t

orders in prior decisions should be v

Docket No 802 Dlisclassification 

Manufactured Glassware Items as 

Bartlett Collins Co and Houston F

ingly and wilfully misclassified ship

items obtaining transportation by 

at rates less than otherwise would 

16 of the Shipping Act 1916 and t

ment of Sustice for appropriate a

Co Inc Royal Netherlands Steams

de Navegacion not shown to have 

for property at less than the regul

violation of section 36 Second o

respondents should be dismissed

Docket No 815Common Carrie

Truck Lines and Other Non Vesse

who holds himself out by the es

advertisement and solicitation and 

by water in interstate or foreign 

1916 assumes responsibility for sa

arranges in his own name with un

of such transportation whether o

which such transportation is effect

in the above Act and as such is e

plated in section 15 of the Act wit

other persons subject to the Act 

in accordance with the above conclu

Docket No 819 Ab8orption or 

Connection With Transportation By 

It was found that respondent E I d

transportation by water for certain 

or charges otherwise applicable b

violation of section 16 of the 1916 S

Line Inc and Grace Line Inc fou

obtain transportation of explosives 

an unjust or unfair device or mea

preference or advantage to shippe

to undue or unreasonable prejudice 
criminated between shippers of 

of the Shipping Act 1916 and t

dismissed

Docket No 848 Classification 

Corp N N Serper Co and A

Rubin Rubin Corp and N N 

classified knowingly and wilful

portation by water at less than 

applicable in violation of sect

Academy Forwarding Corp a fo

fied knowingly and wilfully sh

tion by water at less than th

applicable Docket No 849Agreement an

Gulf and South Atlantic Havana 

Docket No 851In the Matter o

G13 of Gulf and South Atla

No 4188Docket No 854Sw

South Atlantic Havana Steams

South Atlantic Havana Steams

shipments to Cuba from inland 

serve through application of a 

of a dual rate system found una

in violation of section 15 of the 

not only in contravention of 

Reparation should be awarded 

Docket No 853 Raymond In

shown that the rate charged o

port of New York NYto Las 

15 16 or 17 of the Shipping Ac

and the complaint dismissed

Docket No 560 Sub No 2

804 Merchant Marine Act Do

IncWaiver Under Section 80

stances and good cause are show

by Jakob Isbrandtsen presiden

Co Ltd and the waiver there

granted Docket No 573Waterman 

Differential Subsidy As to Se

that Waterman Puerto Rico s

in the US GulfPuerto Rico t

PR and its predecessor in in

rights in the operations of this 

ments between Waterman and 

Steamship Corp given permissi

ship service of Pan Atlantic ce

McLean

3

Waterman Pan Atlant

Waterman Steamship Corp 

Puerto Rico service and its J

4 Waterman Steamship Corp 

YorkNew Orleans Southbound 

have grandfather rights its 

195548 and no grandfather rig

weekly service to Miami Tamp

ing the New YorkNew Orlean

granted permission to continue 

PanAtlantic Further it was h

as competitors in this proceed

was found that the granting of 

petition to any person operatin

M
trade and was not prejudicial to th

Act of 1936

Docket No S89American Ma

Trading Privileges on the Pacific 

Line Ltd American President Line

not operating existing services on 

their applications ExistingUSflag

section 605 c of the Act is a ba

differential subsidy contracts to co

from the Pacific coast to Indonesia 

and section 605 c of the Act is 

Line ssubsidy contract for the propo

Docket No S91Grace Line 

Raiti from US Atlantic Ports S

of the United States under section 

service currently provided by vess

PortauPrince trade is adequate 

and policy of the Act additional v

Examiners also issued decisions 

S57 Sub No 4 S73 605 c

described above under Final decis

Pending Proceedings

At the close of the fiscal yea

of which 50 were initiated on 

mainder were instituted by for

by conferences trade associa

operators and others

FINANCIA
y

Qti

W b

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@7 K
FEDERAL MARITIME BO

DEPART

Statement of Operations fo

OPERATIONS OF MARITn1E ADMINISTRATIO

Operating activities

Revenue and reimbarsements

Maintenance of reserve fleet ve

Maritime training progra

Operation of warehouses

Maintenance of reserve shipya

Costs and expenses

Maintenance of reserve fleet ve

Maritime traming program

Operation of warehous

Maintenance of reserve shipya

Net costs and expenses

Maintenance of reserve fleet v

Maritime training progra

Operation of warehous

Maintenance of reserve shipya

Inventory and at property adju

Direct subsidies and costs attributable 

Estimated operatingdiderentiel su

Adjustment of estimated remptum

Costnattionald

st of national defen

Cost of national defense allocatio

Financial assistance w State Marine

Administrative expense

Other costs and expenses

Provision for estimated losses on sc

Loss on vessels sold lost or ab

Loss on sale of fixed assets othor th

Lori on sale of surplcs material an

Inventory and at property adju

Research and tests 

Provision for uncolleetible account

Miscellaneous 

Otherincome

In terest earned on notes and mortg

Recoveries for use of national defen

Miscel laneous 

Other costs and expenses ne

Net east of current year operations not

ADIUSTnENTS APPLICABLE TO PRIOR YER

Net charges arising from adjustments 

to World War II activlties

Participation in profits of World War I

Write off of reserve for estimated clai

under Merchant Ship Sales Act of 19

Adjustment of charter hire revenue of y

NET COST Or MARITIDrE ADMINISTRATION 

Net income loss from National Shipping 

Net income from War Risk Insurance Prog

Net income romFederal Ship Mortgage In

NET COST OF COHRINED OPERATIONS 

Includes ommostructemdiHerential sub

The notes to fxe ncjal sta

50
FEDERAL MARITIME BOARD 

DEPARTME

Statement of Equity of the Unite

June 30 

ALANCE BEGINNING or YEAR 

ImMONS Funds appropriated by the Congress fund

Recorded valueof 9 vesselstransferrdfr

Navy in fiscal year 1960 not of2032075

sold for scrap and 70 vessels in fiscal yea

Equipment transferred from US Governm

Capitalization

yea

of dredging costs charged to c

Contributions received for construction of c

Marine Academy kings Point NY 

Adjustment of accounts payable from prio

Expenditures from funds adjustment o

Lary of the Treasury for liquidation of o

funds of the War Shipping Administratio

Settlement of accounts payable by the Gen

2EDUMIONS Not cost of operations exhibit 2 

Payments into General Fund ofth0 UST

Liability for wages of seamen and others t

Accounting 0 as 

Recorded cost of 5 vessels transferred to the 

fiscal year 1960 and 1 vessel in fiscal year 

Upobligated

ment

balance of appropriations tran

netofrestoration of2126 in fiscal 

Provision

year1959

for estimated losses on scrapping 

Recorded cost of 1 vessel transferred to 

Force 

Part of the cost of the S Tulane NIA 

delivered to the Department of the Nav

Equipment donated to state agencies 

Provision for estimated losses on doubtful n

not Previously reco

Materials and supplies donated to state ag

Adjustment of reserve established to reduc

cost of the original complement of outf

that were removed during prior years 

Accounts receivable transferred to or 

agencies 

Inventories of materials and supplies use

Grain Storage Program for the US Dep

duction

1

and Marketing administration 

460 508 in fiscal year 1960 and 21058 

were reimbursed 

Materials and supplies transferred to or 

agencies net 

BALANCE CLOSE OrYEA
FEDERAL MARITIME BOA

DEPARTM

Statement of Sources and A

BoPRces Fluids appropriated by the Congress 

Collections on mortgage loans receivable 

Proceeds from sale of vessels owned 

Funds advanced by other Government 

Proceeds from sale of fixed assets other t

Mobilization inventories transferred to 

Contributions received for construction 

Total fundsProvided 

APPLICATION

Net Coat of Operations Per Statement o

Items considered in net cost of oper

Provision for estimated losses on 

Loss

Vess

on fixed assets sold lost or 

Oth

Payments into general fired of USTre

Expenditures for vessels owned and und

Liability for wages of seamen and other

Unohligated balance oappmpristions t

Expenditures for land an site develop

Working

struetion

capital

in Progress

transferred to other US 

Loan made by Federal Ship Mortgage I

Increase in working Capital par summa

Total funds applied 

Summary of C

ASSETSCash

Advances 

Noles and accounts 

Accrued interest 

Materials and supplies 

Other assets 

Tcmi 

LIARMIKE3 Accounts payable and other liabilities 

Net terminated voyage revenue 

Total 

WORKING CAPITAL 

INCREASE IN WORUMO CAPITAL 

Disbursements of55071 227in 1960 and 

ment agencies oases against liabilities for ad

FEDERAL MARITIME BOA

DEPARTM

Notes to Financial Sta

1 The balance sheets and the statement

of certain steamship Companies which ope

agreements

na Mo kggme r16787 and atJune 

52
FEDERAL MARITIME BOARD 

DEPARTMEN

Statement of Operations of Nationa

June 30 

SHIPPINO OPERATIONS 

Vessels operated by general agents

Terminated voyage results terminated v

Revenue 

Espenses 

Cross profit from vessel opera

Chartering of vessels to others 

Total gross Income lass from sbipping o

NONSri1PPING OeEHATIOSS

Vessel reactivation costs 

Vessel deactivation costs expense of resto ine 

Costs of testing and operat ion of NS SAVAS

Miscellaneous expenses 

LessReimbursement of vessel reactivation cost

Reiniburtement of vessel deactivation cos

Reimbursement of costs of testing and op

1tliscellaneous income 

Net cost of nonshipping operations 

ADMINISTRATIVE BAPESSES 

NET INCOME Low FROM OPERATIONS 

APP

AP

Summary of OperatingDifferent

Name of operator 

American Export Lines Inc 

American Mail Line Ltd 

American President Lmes Ltd 

Bloomfield Steamship Co 

Farrell Lines Ine 

Orate Line Inc 

Gulf South American Steamship Co I

Lykess Bros Steamship Co Inc 

M i Shipping C Inc M0000reeCormack Linesc Incnc 

The Oceanic Steamship Co 

Pacific Far East Line Inc 

Prudential SteamshipCor

States SteamshipCo 

USLines Co

Cargo sercice 

SS AMERICA 

SS UNITED STATES 
Aid to Vessels Over 20 Years of 

Under Section 605 bMe

Company 

APPROVED D

Ameriem Export Lines Inc 

Prudential SteamshipCorp 

TJ qg 

MOOr2MCG O

APPROVED 

American Mail Line Ltd 

American President LinesLtd 

Farrell Lines Inc 

Grace Line Inc 

Gulf South

Lykes Bros Steamship Co

58
Aid to Vessels Over 20 Years of A

Under Section 605 b Merchant 

Company 

APPROVED IN PR

Lykes Bros Steamship Co Inc Continued

Mississippi Shipping Co

MooreoCormack

Pacillc Far East Line inc

States Sleamshiu CO

USLloes Co
Aid to Vessels Over 20 Years of 

Under Section 605 bMercha

Com an

P Y 

APPROVED IN P

USLines CoContinued

60
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Cash and App

in the Statutory Capital and Sp

as 

Operator 

American Banner Lines Inc

American Export Lines Inc 

American Mail Line Lid 

American President Lines Ltd 

Bloomfield Steamship Co 

Farrell Lines Inc 

Grace Line Inc 

Gulf South American SteamshipCIn

Lykes Bros Steamship Co Inc 

Mlesissgai MoomMcCormack ShippingLines Co IneInc 

Oceanie Steamship Co l

Pacific Far East Line lnc

States SteamshipCo 

United States Lines CO 

Total 

F Last subsidized voyage terminated Nov

mWated

NmE Accrued mandatory deposits applic

1959 not included in the above amount to 

the capital Reserve Fund depreciation a

praffts

5T3