Eleventh Annual Report

OF THE

UNITED STATES

SHIPPING BOARD

It

Fiscal Year Ended

June 30

1927

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON

1927
THE UNITED STATES SHIPPING BOARD

T VOCONSOR Chairman

EDWARD C PLUMMER Vice Chairman

WILLIAM S Benson Cmnntissionor

WILLIAM S HILL Commiseiorur

JEFFERSON MYERS C01nm18li0nfr

ROLAND H SMtma Commissioner

PHILIPS TELLER Cammissimrr

SmvEL GOODACR Slteta

II
TABLE OF CONTENTS

I UNITED STATES SHIPPING BOARD

I

Letter of transmittal 

Organization chart To face p

Organization 

General 

Summarized statement of conditions 

Bureau ofTraNic 

Bureau of Regulation 

Bureau of Operations 

Industrial relations division 

Piers and wharves division 

Investigations division 

Port facilities division 

Bureau of Construction 

Bureau ofLaw

Litigation and claimsdivision 

Codification of navigation laws division 

Admiralty division 

Contracts opinions recoveries and special assignments divisi

Bureau of Finance 

Bureau of Research 

Secretary 

II UNITED STATES SHIPPING BOARD MERCHANT F

CORPORATION

Organization chart To face 

Organization 

REsum6 of the year s main accomplishments 

Shipsales 

Extent of vessel operation 

Special grain and cotton movement 

Reduction in operating costs 

Operating profit of United States Lines 

Cost of maintaining cargo services 

Underlying causes of reduced costs 

Improvement in world shipping situation 

Increased patronage of American flag ships 

Improvements in efficiency traceable to operating policies e

lished in past years 

Operating policies emphasized during IT7
IV TABLE OF CONTENTS

Principal events of the year in operations and suppl

Fuel conservation 

Centralized purchasing 

Selection of ports for bunkering 

Food control 

Stevedoring cost 

Shortening of ves el turnaround 

Repair and betterment of active fleet 

Care of reserveAect 

Inspection of vessels sold 

Terminals 

Reduced costs in theOriee

Progress along special technical lines 

Diesel conversion progra

Tests

Radio

with Powdered coal 

Traffic

The year in the European and Mediterranean trad

South American trade 

Oriental Indian Australian and African servi

Passenger services 

Tankers 

Traffic office 

Future traffic needs 

Publicity 

Insurance and claims 

Centralization of insurance work 

United States Protection and Indemnity Agency Inc 

Cargo claims 

Finanee cl lmrtmrnt 

New financial plan 

Cash disc 

Collection of past Inc accounts 

Shipyard Dlanh 

IIcusing properties 

Transportation 

Bending of ticket agents 

Payroll robbery insurance 

Special disbursing officer at Galveston 

Comptroller department 

Rearrangements affecting field offices 

Manual standardizing operators accounts 

Improvements in accounting and auditing proce

Reduction in personnel and pay roll 

Character of operating and statistical reports 

Conclusion 
TABLE OF CONTENTS

APPENDIX

1J 

XI Report of litigation for period June 10 1026 June U 1i27

a United States United States Shipping Board E

gency Fleet Corporation and United States Ship

Ioard merchant Fleet Corporation 

b United States Protection and Indemnity Agency I

c Bankruptcy and receivership report 

XIL Names and compensation of employees of the United States 

ping Board in the service on June 30 1927 

Names and compensation of employees of the United States 

ping Board who have been in the service some part of the 

year ended June M 1027 

Table I Vessels sold vessels disposed of other than by sale vvsxls 

and vessels added to the United States Shipping Board 

during the fiscal year ended June 30 1927 

II Vessel property controlled by the United States Shipping B

Merchant Fleet Curporatlun as of June 0 192 

III Status of vessels controlled by United States Shipping h

Merchant Fleet Corporation as of June 3ti 1027 

IV List of Shipping Board lines and of operators and chartere

Shipping Boal dve9seln as of June till 1021 

V Services maintained by the United States Shipping Board 

chant Fleet Coclswration as of June 3Q 192 

VI Analysis of the total vessel property acquired by the U

30

States Shipping Board showing disposition of same as of 

1027 

VII Summarized consolidated cash statement by appropriation 

the fiscal year ended June 30 107 To face p

VIII Balance sleet as of June 30 1127 

IX Gross appropriations and allotments front inception to Ju

1027 

X Statement of profit and loss excluding liquidation fiscal 

1J 

XI Report of litigation for period June 10 1026 June U 1i27

a United States United States Shipping Board E

gency Fleet Corporation and United States Ship

Ioard merchant Fleet Corporation 

b United States Protection and Indemnity Agency I

c Bankruptcy and receivership report 

XIL Names and compensation of employees of the United States 

ping Board in the service on June 30 1927 

Names and compensation of employees of the United States 

ping Board who have been in the service some part of the 

year ended June M 1027 
LETTER OF TRANSMITTAL

UNITED STATES SHIPPING BOARD

Washington D C Decembe

To the Congress

In compliance with section 12 of the shipping act 19

the honor to transmit herewith the eleventh annual re

United States Shipping Board and the United State

Board Merchant Fleet Corporation covering the fiscal 

June 30 1927

T VOCoxxon Chairman

EDWARD C PLUMMER Vice C

IV S BENSON Commissioner

WILLIAM S HILL Commissio

JEFFERSON MYERS Commissio

ROLAND K SmiTH Commissio

PnILIP S TEI IER Commissio
PART I

UNITED STATES SHIPPING BOARD
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THE UNITED STATES SHIPPING BOA

ORGANIZATION

On July 1 1926 the United States Shipping Board was 

of the following members T V OConnor chairm

Plummer vice chairman and Commissioners 1V S Ben

I ill Jefferson lyers I S Teller and J II Walsh

T VOConnor chairman Great Lakes was appointe

her June 9 1921 term five years qualified June 15921 re

and qualified June 15 19 for a term of six years fro

1926 Edward C Plummer vice chairman Atlantic 

appointed June 9 1921 term three years qualified June 

reappointed May 23 1924 term six years and qualified Jun

term expires June 8 1930 1V S Benson Atlantic co

under a recess appointment from December 1 1920 to larc

from March 4 to June 13 1921 served as personal repres

the President June 9 1921 appointed commissioner term 

qualifying June 13 1921 June 13 1922 reappointed term 

qualifying June 14 1922 term expires June 8 1928 W 

interior was appointed to serve unexpired term of A 

resigned qualified February 1 1924 term expired Jun

received recess appointment and qualified June 7 1927 

Myers Pacific coast was appointed to serve unexpired term 

Haney resigned qualified June 15 1926 term expires Ju

P S Teller Pacific coast was appointed to serve unex

of Meyer Lissner resigned qualified January 15 1926 te

Juno 8 1928 J I1 Walsh Gulf coast appointed and 

November 9 1925 to serve unexpired term of F L T

resigned reappointed December 17 1925 resigned Octobe

and was succeeded by Roland K Smith Mr Smith qu

tober 16 1920 under a recess appointment recommissioned 

17 1926 qualifying January 20 1927 for the unexpired te

June 8 1929

During the year the board held 93 meetin in addition 

there were held many special hearings conducted either by 

or by committees thereof
ELEVENTH ANNUAL REPORT UNITED STATES SHIP

GENERAL

The principal change in the administrative organ

United States Shipping Board during the year was the 

on October 1 1926 of the law departments of the Fle

and United States Protection and Indemnity Age

board sBureau of Law Aside from this change the 

ization remains practically the same as at the time of 

report

The board s primary function as provided in v

Congress is the establishment and maintenance of 

merchant marine Activities falling under this gen

the most part of a promotional and regulatory natu

on in seven bureaus namely the Bureau of Traffic Bu

lation Bureau of Operations Bureau of Construct

Law Bureau of Finance and Bureau of Research 

is under the supervision of a member of the board a

accompanying organization chart

The board ssecondary function intimately bound 

foregoing involves the operation and liquidation o

ment sfleet of merchant vessels acquired as a resu

As provided by law this activity is carried on by the 

the instrumentality of a subsidiary organization know

chant Fleet Corporation whose president reports to 

Board as to a board of directors the board in all cas

fundamental questions of policy

These two principal functions are necessarily closel

it was the unmistakable intent of Congress as clear

the merchant ivarine act that the Govermuent fleet w

lized that ultimately it would become part of the p

American merchant marine The board has kept co

in this conception of the important role that Gove

merchant vessels most play in the upbuilding of o

shipping

SUMMARIZED STATEMENT OF CONDITIO

In order to present a brief statement of present co

American merchant marine it becomes necessary to r

paragraphs some of the outstanding features relating 

and scope of activity of the Shipping Board

The United States Shipping Board was created b

act approved September 7 1916 To establish a 

Shipping Board for the purpose of encouraging d

creating a naval auxiliary and naval reserve and a m

to meet the requirements of the commerce of the Un

regulate carriers by water engaged in the foreign and 
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING B

coerce of the United States and for other purposes T

jurisdiction and powers are further defined and expanded 

quent acts of Congress notably by the merchant marine a

Created and organized not long before our entry into the G

the board early in its existence found itself plunged into 

program the like of which had never before been known 

undertaking the greatest emergency construction task ever 

by a single organization it repaired the seized enemy ships 

and trained officers and seamen for merchant vessels sup

chartering of all ships from American ports developed P

ties handled large problems of labor control and opera

merchant marine Many of the board simportant war 

were exercised by it through the Emergency Flect Corpora

known as the Merchant Fleet Corporation the creation 

was authorized by the shipping act and the purpose of wh

permit of Government ship operation free from gov

restrictions red tape and immunities

When the armistice was signed the board controlled 1

in active service not counting vessels under construction 

ber was subsequently augmented by the return of vessels 

Army and Navy and by other acquisitions All in all the 

owned and controlled a grand total of 2536 vessels of 

aggregating 14dead wight ton

The handling and disposition of this enormous fleet has 

complicated problem Congress has directed in the merch

act of 1920 that as soon as practicable consistent with goo

methods the vessels shall be sold but that meanwhile the

used at the discretion of the board in the establishment o

trade routes these in ton to be disposed of ultimately 

American interests As it result of the establishment of tr

by the board steamships flying the American flag have 

peared in the principal ports of the world for the first t

years not a single one of them in competition with privat

American flag vessels

At this writing June 30 192 7 the board still possesse

of 800 ships 307 in active operation and 316 in the laid

It holds these lines and individual ships out to private c

purchase under the most favorable terms and continues 

upon strategic trade routes only until such time as private 

disposed to take them over

A graphic idea of world shipping conditions will be gain

study of the shipbuildin industry in the principal maritim

during the past few years Thus the number of ships of 20

tons or over built or now under construction for transocean

from and including the year 1921 shows that for every sh
6 ELEVENTH ANNUAL REPORT UNITED STATES SHIP

class built in the United States Great Britain has bu

12 Italy 5 and Prance and Japan each approximately 

This new construction provides our competitors 

more ships but also with faster ones for the mode

cially noticeable during the past few years is all in 

of speed coupled with economy of operation due to th

date propulsive machinery largely of the internal co

This is an age in which other things being equal the 

the cream of the freight We are thus being outclass

tonnate but also in the character of service we are 

the shipper More and more are we likely to get the 

classes of cargothe commodities invariably handled 

at low freight rates

While the statement is frequently made that the 

has no shipping policy the fact is that the mercha

lays clown a policy that is concrete and unmistakab

has a more definite one The shipping board is do

carry out that policy It has used the Government fle

a result of the war in the establishment of essentia

Since 1921 it has sold to American citizens 134 ship

4993 340 tons for84411 023 39including nine estab

services disposed of upon the basis of guaranteed o

fixed number of years

The merchant marine act although looking to ul

ownership does not direct the board to sell ships 

The act clearly directs that ships and ship lines be 

that can be clone consistently with the development 

establishment of the American merchant marine Ac

board has never sold an established ship line except w

upon the belief that such sale with a guarantee perio

for permanency of service It has therefore felt warra

upon liberal terms in order to enable the purchaser to 

tion during the development period believing in all c

the purchase would result a privately owned ship line 

petitive trade firmly and permanently established 

feeling of security the board would not of course 

selling but would see that operation by the Governme

until healthier economic conditions make private ope

In short the present merchant marine act means d

the Government and gradual and ultimate ownership 

ital This policy is being carried out If Congress 

want the country smerchant fleet turned over immedi

ownership for continued operation substantial Gove

be required to accomplish that end If aid is not pro

it is provided the present policy as laid down by the m
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

act must continue to govern every action of the Shipp

That policy if carried to its logical conclusion assures to 

States an adequate merchant marine ultimately to be 

operated by private capital the Government meanwhil

any operating costs and any absolutely necessary vessel 

costs essential under any plan In this connection it is 

that congressional appropriations for ship operation 

reduced from seventy five millions in 1921 to seventeen mi

in 1927

On July 3 1926 the Senate passed a resolution S R

follows

Resolved That the United States Shipping Board be and it 

quested to prepare and submit to the Senate not later than Jan

comprehensive and concrete plans for building up and maintai

quate merchant marine for commerce and national security 

private capital and under private ownership and 2 through 

operation and ownership by the Government

In response to this resolution the Shipping Board 

14 1927 submitted a report embodying certain plans f

up and maintaining an adequate merchant marine fo

and national security The board sreport was made aft

had been held in 33 cities in various sections of the Un

As a result of these hearings supplemented by respons

inquiries addressed by the board to representative organi

individuals throughout the country sentiment of the ge

was found to be as follows

1 It was unanimously held that the United States s

an adequate merchant marine for national defense and fo

2 With almost equal unanimity it was held that th

marine should be privately owned

3 With equal unanimity it was held that until it is 

sible for private interests to successfully own and operate 

ican merchant marine the Federal Government must 

do so

THE BUREAU OF TRAFFIC

The Bureau of Traffic has two distinct zones of work 

missioner in charge of the bureau has direct relations wit

department of the Fleet Corporation and is called on fr

time to consider questions of importance arising in imm

nection with the operation of the Government fleet A

that hind are incident to the work of the Fleet Corpo

are not included in the report of the Bureau of Traffic 

line of work for which this bureau is responsible con

definitely the development of a privately owned and opera
8 ELEVENTH ANNUAL REPORT UNITED STATES SHIPP

can merchant marine wholly independent of the act

vessels of the Government under the control of the b

services are varied and many of them are pursuant to e

sions of law among them during the year have been t

Ocean Mail Contracts

Under the provisions of section 24 of the merchan

1920 compensation to American flag steamships owned 

by American citizens for transporting mails may be 

basis of an amount agreed upon between the United Sta

Board and the Postmaster General The underlying 

section 24 is to be distinguished from that of the ocea

1894 in that the latter has in it fixed rates prescribed 

but section 24 of the merchant marine act 1920 perm

tude in the discretion of the Shipping Board and th

General in determining the amount of compensation to 

compensation is not to be measured exclusively by the t

value of the services rendered a broader test may be ap

ing due consideration of the necessity for the service an

of compensation necessary for its maintenance in a

velopment of a merchant marine adequate to provide 

tenance and expansion of the foreign and coastwise 

United States and a satisfactory Postal Service in con

with

For many years the United States has given Am

preferential treatment in the transportation of ocean m

in the fact of its transportation but also in the rate of 

paid therefor In the absence of an express contrac

transported in regular course is paid for on the pounda

compensation to American vessels is 80 cents per pound 

mails This amount is substantially more than the co

foreign vessels for similar service the amount paid f

is the amount fixed by the International Postal Unio

has not only acted in behalf of American lines to sec

contracts mentioned but it has also urged increases o

ronage on a poundage basis in cases where the way 

to arrange a fixed postal contract and in such cases i

most cordial cooperation of the Post Office Departme

that the ocean mail act of 1891 is based on construction 

costs prevailing at that time 1891 makes it practi

though still technically in force the fact that it is ob

creased the opportunity for service by the board under 

of section 24 of the merchant marine act 1920

Various contracts have been made by the Postmaster 

time to time under the provisions of the section ment

contracts having been initiated by and made substant
ELEVENTII ANNUAL REPORT UNITED STATES SHIPPING 

recommended by this board Among these have been the 

AmericanSouth African Line Inc pursuant to resol

May 21 1926 the Dollar Steamship Line pursuant to 

dated June 16 1926 the Grace Steamship Co pursuan

tion dated October 5 1920 the Export Steamship Corpo

suant to resolution dated February 26 192G the Munson 

Line pursuant to resolution dated February 20 1926 and 

Steamship Co pursuant to resolution dated May 1 1926

The status and policy of these contracts were the subje

sive discussion in Congress during the past year with 

that the appropriations to the Post Office Department fo

year ending June 30 1923 contain a provision that no 

appropriations shall be applied to payments due unde

contracts heretofore made This action by Congres

was under circumstances which made it obvious that ob

not exist to payments being made on similar contracts if 

entered into in other words such contracts for the prese

should be limited by their terms to one year so that t

be no embarrassment to the appropriations committee o

in giving the subject annual consideration

The contracts with the AmericanSouth African Line 

Dollar Steamship Line and the Grace Steamship Co 

by their terms on June 30 1927 The contracts with 

Steamship Corporation the Munson Steamship Line and 

Steamship Co were to have expired by their terms on Jun

however in order to give effect to the policy referred to a

contracts were canceled by the Past Office Departmen

result that all of the contracts mentioned terminated duri

fiscal year

Under these circumstances the board reviewed all of 

on April 19 1927 adopted a resolution relative to them r

ing their renewal or extension for periods of time not ex

year commencing July 1 1927 as follows

Oceanic Steamship CoFor the transportation of mail

Francisco Calif to the port of Sydney Australia includ

to Honolulu and Palo Palo the compensation being at 

3 per statute mile for each outward voyage not exceedin

14 voyages per annum

Munson Steamship LineFor the transportation of 

New York to Rio de Janeiro Montevideo and Buenos 

cluding any other South American east coast ports tha

agreed upon the compensation being at the rate of 3 

mile for each outward voyage

Export Steamship CorporationFor the transportatio

from New York to the Mediterranean and Black Sea 

695972T2
10 ELEVENTH ANNUAL REPORT UNITED STATES SHIP

vessels of this line are primarily cargo vessels and th

the mail transported is chiefly parcelpost matter Th

pensation therefore is not on a mileage basis but a 

annual payment was fixed as just and reasonable comp

the privilege of the Post Office Department using any 

of the line in the service mentioned This compensa

in the first instance at 100 0 per annum but in th

cost of the service and the severity of foreign competit

to 200 0 was recommended and was concurred in 

master General

AmericanSouth African LineFor the transporta

from the port of New York to ports in the Capetow

of British and Portuguese South and East Africa In 

also the mileage basis of compensation was not emp

the board use the same basis as that used with the E

ship Line namely a definite sum for the entire servi

sels In this instance the compensation was fixed 

each outgoing voyage for each vessel These distinctio

because of the varying circumstances attending the s

tively involved

Dollar Steamship LineFor the transportation of m

port of the United States including the Hawaiian a

Islands at which the vessel may stop consigned to Sing

Settlements or consigned to any ports between the 

North America and Singapore at which the vessel ma

to stop with the proviso that any mail matter intend

portation to any port beyond Singapore at which the v

wise scheduled to call shall be paid for on the usual po

the rate of compensation being 2 per statute mile fo

of mileage between San Francisco and Singapore by th

route notwithstanding the vessel in fact makes the voy

circuitous route In the first instance the number 

which the compensation was to be applied was fixed 

schedule having been improved the Post Office Depa

instance of this board extended the compensation to 2

annum

Grace Steamship CoFor the transportation of ma

Fork to the Panama Canal Zone or other Panaman 

of South America served by the vessels involved the 

being at the rate of 25 per statute mile for each ou

not exceeding however 26 voyages per annum This 

initiated by resolution of the board dated October 5 1

up for reconsideration and subsequent action with th

contracts and was recommen led for extension by the g

tion relating to all the contracts dated April 19 1927
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

Interest in Trade Routes

Under the provisions of section 7 of the merchant mari

the board is authorized and directed to investigate an

from time to time what steamship lines should be esta

put in operation from ports in the United States to suc

domestic markets as in its judgment are desirable for th

of the foreign and coastwise trade of the United States 

gations contemplate the compilation of data of value to 

the United States in considering and determining whethe

trade routes should be covered by American vessels but 

made that the board shall operate such routes in proper 

private operators do not assume the burden having in 

velopment of the trade route and its possible subseq

private citizens In so far as this work has involved th

of the Government fleet on such routes the report of s

of course covered by the Fleet Corporation When lin

however the work of the board is resumed in favor of 

companies purchasing and operating such lines that t

encouraged and protected by the board in all proper w

plated by law

Section 7 expressly contemplates the award of pos

in proper cases to assist private operators in the ma

any such service purchased The arrangement of su

for the period during which the Government was operati

was obviously unnecessary from a financial point of vi

ing the period of Government operation any compensa

under any such contracts would have been merely a 

money from one department to another department of 

States The activity of the board in securing compens

vate citizens purchasing such lines by the award of pos

is set forth herein at another point under the title 

contracts 

An illustration of assistance to purchasers of lines is 

the French Government requiring the Dollar Steamship 

had purchased its vessels from the board to submit th

spection under French laws notwithstanding they held 

from the American Bureau of Shipping as in com

American inspection laws The inspection would have 

putting the vessels successively into dry dock as they 

France and otherwise being made to conform to the Fre

ments Through the initiative of the board and with 

tion of the Department of State the immediate crisis w

the French Government recognized the certificates of th

Bureau of Shipping The basic aspect of the case 
12 ELEVENTH ANNUAL REPORT UNITED STATES SHIPP

further attention during the year An international ag

to be developed and concurred in under which Fra

United States will if it is consummated mutually a

cient the inspection certificates of their respective offic

end the French inspection laws are under consider

Department of Commerce in cooperation with the D

State and the Department of State has recently trans

French Government full information concerning the U

inspection laws to the end and with the hope that a m

ment may ultimately be made

Germane to the sale of lines established by the board 

7 of the merchant marine act 1920 is the question of 

railroad companies to own and operate ocean going 

question has been the subject of recent consideration a

tion by the Bureau of Traffic of the board While sec

Panama Canal act prohibits railroads owning and ope

between points which are connected by rail transpor

the Interstate Commerce Commission approves such o

limitation does not extend to vessels operated betwee

connected by rail transportation such for instance as 

or trans Atlantic service

Conversely to the activities of the board outlined 

of purchasers of lines established by it the board du

actively appeared before the Committee on Merchant 

Fisheries of the House in opposition to a bill there pe

duced in behalf of the PolishAmerican Navigation Co 

in view making good to that company losses it had sus

result of the purchase of ships from the board shortly a

and at the high tonnage values then prevailing The c

tioned belongs to that group of purchasers of ships c

ferred to as pioneer purchasers an extensive gro

chased vessels during 1919 20 at the world market valu

vailing and approximating from 175 to 250 per dead 

only to suffer severe losses when these values collapsed 

pears Whether these pioneer purchasers have an eq

under all the circumstances of the case to have their 

part of their losses made good to them by the Govern

been formerly passed on by the board but the attempt 

such purchasers to obtain preferential treatment by t

such compensation when others of the group are not rec

consideration as was proposed in the bill mentioned p

board to appear before the committee mentioned in o

the bill

The board having adopted as a policy the continuance 

interest in all lines sold by it for their protection as fa
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

against foreign competition this policy has been indors

gress in making a special appropriation of 10000 t

board with the approval of the President to operate s

of ships which have been or may be taken back from pu

reason of competition or other methods employed by f

owners or operators and the power thus conferred has a

exercised

Competitive Discriminations

By an act of the Canadian Parliament made effective 

past year preferential tariff rates applicable to certain im

various places were made effective only when import

Canadian ocean or river ports whereas previously they 

able to Canadian importers when transported to Americ

water thence by rail into Canada The prejudicial e

change was brought to the attention of the board duri

by an American operator who was called on to pay th

between the two tariff rates because the shipment was 

an American port and forwarded by rail into Canada 

being unloaded at a Canadian port It is obvious that th

will be successful in accomplishing its purpose namely t

of traffic from American ports to Canadian ports and 

most instances from American vessels to vessels of Brit

An investigation was initiated by the board and will b

with the expectation that the arrangement though ent

from the Canadian point of view if considered indep

other relationships existing between the two countries 

rected

The policy of this regulation is in marked contra

regulations of the United States Customs Service w

no such discrimination As a result of this freedom of m

American imports and exports investigations of this 

revealed that over 00 per cent of the total movements 

port of Vancouver British Colombia consist either of i

signed to the United States or exports moving from 

States to foreign ports

An illustration of the cooperation between members of 

Empire for their common good is the case referred to 

annual report of the board p 15 entitled Australia

Discrimination under which the customs regulation 

imports into Australia inures not only to the benefit of B

ping plying between Vancouver and Australia but also t

of Canadian railways to the prejudice of American s

American railways This results from the regulation re

cost of rail transportation from the point of origin of 

the port of export to be added to the value of the goo
14 ELEVENTH ANNUAL REPORT UVITED STATES sHiPP

in determining the amount subject to the Australian 

American railroads and American shipping are both 

the regulation that if the shipment is via Vancouver a

ment is from point of origin of shipment in the United 

the Canadian border thence transcontinental to Vanco

of export is the point on the Canadian border at whic

crosses into Canada The result is that a differentia

the Canadian movement exists to the extent of the A

port duty on the commodity involved While the re

not in terms purport to be a discrimination in favo

vessels for the ocean transport the fact remains it ope

a discrimination inasmuch as the movements from 

Australia are chiefly in British vessels

This item of Australian discrimination was further 

and during the year active steps were taken by the D

State of the United States As reported by Australia

the suggestion of the American Government had in vie

the practice on the theory that it would be beneficial 

merchants for American shipping direct from Ameri

have full competitive privileges The cooperation of 

ment of State however in this instance has been un

the Australian Government has refused to act in the 

practice has grave possibilities in its prejudicial bearing 

American shipping but as mentioned on America

These roads are also in communication with the board 

consideration is being given to the end that this d

against American railroads American ports and Ameri

may be stopped

As the Australian regulation mentioned worked to t

Canadian railways and Canadian ports on shipments fro

States in the West conversely it would operate to the b

Atlantic ports with respect to Canadian shipments 

Canada destined to Australia This fact is recognized 

ther illustrating the cooperation between the two mem

the empire the Australian regulation provides with spe

to shipments from eastern Canada that should such exp

through Vancouver the transportation cost to be ad

poses of the customs dues shall be equalized though 

across the continent by Canadian railroads with wha

if transported from eastern Canada to an American A

Further evidence of the policy of the Canadian G

procure as far as possible the transportation of Canad

by Canadian railroads and through Canadian ports is 

recent legislation and rulings of the Board of Railway 

ers for Canada under which wheat for instance may b
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING B

from certain Great Lakes ports either to St John New 

or Halifax Nova Scotia for the same freight rate as that 

its transportation from Buffalo N Y to the port of N

notwithstanding the mileage to New York is about one

of the mileage to St John and about onethird only of t

to Halifax This policy has specially in view the use of 

dian port of Halifax through the winter season to the 

of New England ports which have heretofore been ve

used in connection with Canadian commerce especially th

winter season when the St Lawrence River is closed to na

Interstate Commerce Commission

The activities of the Bureau of Traffic during the year 

to matters arising under the provisions of section 8 of the 

marine act 1020 have had special reference to items o

the Interstate Commerce Commission has jurisdiction but 

law mentioned contemplates may also be investigated by 

as they bear on the development of ports and of termina

at ports the law providing that the findings and recomm

of the board may be submitted to the Interstate Comm

mission for its further attention

One item was the petition of the AmericanHawaiian 

Co and the Luckenbach Steamship Co complainants a

Erie Railroad Co et al defendants for the suspension o

new rail rates on canned goods from the Pacific coast 

points on the ground that the reduction would be prejud

interests of water transportation The board was interes

matter primarily because of the duty imposed on the boa

tion 8 of the merchant marine act 1920 to promote enco

develop ports and transportation facilities in connec

water commerce over which it has jurisdiction to inves

ritorial regions and zones tributary to such ports taking 

sideration the economies of transportation by rail water 

way and the natural direction of the flow of commerce 

because section 500 of the transportation act 1920 dec

be the policy of Congress to promote encourage and dev

transportation service and facilities in connection with 

merce of the United States and the obligation peculia

on the board to foster and preserve in full vigor 

transportation

In this proceeding the board brought to the attention of 

state Commerce Commission the question whether the rate 

involved might constitute a violation of Article I section 

Constitution of the United States which provides that n

ence shall be given by any regulation of commerce or reve
16 ELEVENTH ANNUAL REPORT UNITED STATES SIIIP

ports of one State over those of another This 

prompted by the fact that the rates involved were 

points on the Pacific coast to all points in a defined 

area in the middle of the United States notwithstan

age from the point of origin of shipment on the Pacifi

interior points varied very greatly but a similar s

in effect from the Atlantic coast ports and the ben

mental approval was claimed for the apparent discrim

point was emphasized because the traffic involved 

ments from points outside of the United States and 

lines operating through the Panama Canal claim the 

facility and economy of rail transportation to such i

from Atlantic coast ports especially as railroads trans

from Atlantic ports are parties to the rate structure un

postage stamp rates from the Pacific coast are main

emphasized that if this practice can be justified it 

ilarly claimed that the rail rate on coffee imported 

or Java consigned to the middle area of the United 

also be put on a uniform basis if imported through 

ports although a similar uniform rate system is 

ported through Atlantic coast ports The Intersta

Commission issued an order suspending the rate pe

investigation

Another item pending before that commission in w

was active during the yearand in which it has been 

tive as indicated in the tenth annual report of the 

167is Docket No 12631 entitled In re Charges 

Handling Storage and Other Accessorial Services at 

and Gulf Ports Hearings in this case by subseque

extended by the Interstate Commerce Commission on 

board to North Atlantic ports Hearings relating to 

vailing at North Atlantic ports were conducted by the I

merce Commission during the year at Washington Bos

and Philadelphia At these hearings the board was 

the director of the Bureau of Traffic of the board 

progress representatives of southern ports requested 

Commerce Commission to reopen the hearings prev

South Atlantic and Gulf ports and the request was gra

result that the case is now open with respect to the cond

as to all the ports on the east coast of the United Sta

and Atlantic Ocean ports The board is primarily in

proposal involved in this case that charges by a railroa

services particularly for terminal services rendered it 

nals operated by it shall not be absorbed in its line 

when requested by the shipper or consignee the railro
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING B

separately that part of the total rate which covers the wate

services rendered in order to facilitate the use of ano

terminal if the shipper or consignee prefers to do so

Bills of Lading

The interest of the board in the general subject of bills 

in ocean traffic has two aspects One of these has in view 

tion by maritime nations of a uniform bill of lading for use 

ocean borne commerce and the other has in view entirely 

the question of uniformity the development of a bill of la

ing possible shipments from interior points to tidewater 

by ocean vessels to foreign ports on a single document

The movement for a uniform bill of lading is based pr

The Hague Rules of 1921 which were originated at a

tional conference at The Hague These rules have been 

at subsequent international conferences and a convention 

adoption as an international agreement was signed by the 

ambassador to Belgium during the past year and in Febr

the proposed convention was sent to the Senate it is no

before the Committee on Foreign Relations Due conside

of course be given the document on its merits from th

view of its relation to the development of an American 

marine Apart from this however there is a fundament

whether freedom of contract between American citizens 

contracts do not in any way involve international relations 

impaired through the instrumentality of an international 

in the development and adoption of which agreement the 

Representatives of Congress has not had and can not have 

distinguished from legislation in regular course in which b

must concur

Prior to the presentation of the convention to the 

the Department of State the general purposes of the 

were embodied in a bill presented to Congress for action 

course involving of course consideration both by the 

by the Senate Extensive hearings were held upon the b

tion namely H R 12339 of the Sixty eighth Congress 

a revision of an earlier bill H R 11447 Extensiv

were held by the Committee on the Merchant Marine and 

of the IIouse and that committee having made importa

ments embodied them in H R 12339 entitled A bill 

the cariage of goods by sea The hearings and the ac

committee as a result of the hearings reveal that extended 

tion was given by it to the question whether the propos

Brussels convention embodying The Hague rules as the

enacted into law by the Parliament of Great Britain i
18 ELEVENTH ANNUAL REPORT UNITED STATES SIII

enacted into law by the United States would ade

American interests and whether greater freedom o

exist in favor of British shipping than to American 

the two systems of legislation and of government

Although concern has thus been revealed by th

committee in charge and though the result of the 

treaty would be a limitation of freedom of contra

American citizen and another American citizen th

parently is that the measure shall be made effectiv

instrumentality of a treaty While this board is in 

the principle of having a uniform bill of lading for oc

tion in foreign trade its position has been that the 

be treated as a matter of domestic legislation and not 

treaty

The development of a joint bill of lading relative 

our foreign trade originating at interior points of the 

is contemplated by section 25 of the interstate comm

form for such a bill of lading was arranged by the I

merce Commission in conference with the board b

veloped it has not been as effective an instrument of 

contemplated The subject has therefore been furt

during the year with the view of its development as a

cur foreign trade acceptable to all parties concerned

Coastwise Laws

Under the provisions of section 21 of the mercha

1920 duties are imposed on the board relative to the 

of the coastwise laws of the Uinted States with spec

the extension of those laws to our island possessions 

with reference to their extension to the Philippine Isla

tion to such specific duties the board has general dutie

the bearing the coastwise laws have on the upbuilding 

merchant marine

From time to time since the enactment of the merch

1920 the board has reported to the President that ade

service with vessels of American registry has not b

between continental United States and the Virgin Is

President has in accord with section 21 of the merch

1920 from time to time postponed the extension o

laws to traffic with the Virgin Islands The last proc

President extended the period to September 30 1928

Transportation conditions in the Philippine Islands 

attention during the past year but the general sit

changed The recommendation of the board by re

January 30 1922 certifying the adequacy of tonnag

service in commerce between the United States and 
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

Islands remains in force but no proclamation has bee

the President declaring that adequate shipping service 

fixing a date for the coastwise laws to become effecti

Philippine Islands

An important distinction exists between the adequacy 

available for service in commerce between continental U

and the Philippine Islands and that other requiremen

21 of the merchant marine act 1920 which imposes on th

before such confirmation is made the duty of a full inve

The local needs and conditions of the islands Under 

mentioned the Government of the Philippine Islands is 

to adopt and enforce regulations governing the trans

merchandise and passengers between ports or places in 

pine Archipelago so long as Congress postpones author

owned in the Philippine Islands to be registered as ve

United States During the year a conference was held i

having in view mutual legislation by the American C

the Philippine Legislature to the end that the Philippine 

would recognize American vessels in the coastwise t

Philippine Archipelago in return for action by Congre

ing the registry as vescls of the United States of vesse

the Philippine Islands Subsequently however the co

ested in the Philippine Islands reported that it was im

to proceed with the matter and nothing has yet result

reco mition of the two groups of vessels is a subject th

given further consideration as an important preliminar

tension of the coastwise laws to those islands

Reference is made in the tenth annual report of the b

to a ruling by the Attorney General of the United S

February 4 1026 in the case of AngloMexican Pe

Ltd in which a foreign vessel was permitted to tra

line from California ports to New Orleans without v

coastwise laws in those cases where it is subsequently re

conveyed to foreign ports notwithstanding it was un

delivered at New Orleans and in the meantime combined 

gasoline

During the year conferences were held between impor

of the Government in which this board participated wi

that should such transportation be repeated a test case w

of it and a judicial ruling obtained as to the application 

wise laws to such transportation

The problems presented by competitive conditions bet

ican and Canadian vessels on the Great Lakes have cont

ject of inquiry and consideration In so far as this com

lates to traffic between Canadian and American ports it 
20 ELEVENTH ANNUAL REPORT UNITED STATES SHIPP

beyond criticism or comment In so far as it results fro

sions of section 27 of the merchant marine act 1920 

vessels of Canadian registry are permitted to share in th

tion of commodities moving in the domestic commerce 

States under the circumstances mentioned in the act it 

exception to our coastwise laws The wisdom of this 

be further considered especially in its application to the 

where as a result of the exception there existing th

presented of American vessels subject to compliance w

law and therefore requiring a crew having a sufficie

provide a threewatch system having to meet in comp

domestic trade Canadian vessels exempted from such 

and in fact having a crew based only on a two watch sy

The continued propaganda throughout maritime nati

protective coastwise laws is of course of special concern 

States to which its system of coastwise laws is more im

haps than are similar laws to other nations hence refer

made to the ninth annual report of the board for the 

June 30 1925 p 39 where there are recorded import

investigations conducted by the board during the previou

ing the efforts of foreign groups and of international c

procure for foreign vessels a share in the coastwise 

United States

Other International Items

In addition to the proposed international convention 

relative to steamboat inspection laws and to the propos

eral international contention between maritime states re

riage of goods by sea reference to which has been made u

tion Bills of lading in this report other proposed 

agreements have been receiving the attention of the boa

among which is one relating to collisions of vessels at s

view a change of the present rule of law as administered 

admiralty courts in allotting damages resulting from c

that if both vessels are at fault the damages suffered by 

tively must be added together and the amount divide

tween the two vessels notwithstanding one may have 

at fault and the other only slightly at fault This rule 

applied by other maritime nations but by an internatio

convention of 1910 in which representatives of the c

nations of the world participated including representat

United States it was recommended that Where by fa

more vessels damage or loss is caused to one or more of 

to their cargoes or freight or to any property on board 

to make good the damage or loss shall be in proportion 

in which each vessel was in fault provided that a if h
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

to all the circumstances of the case it is not possible to e

ferent degrees of fault the liability shall be apportioned 

As an important item in our international traffic th

which has already been adopted by some of the maritime 

the world has been receiving tRe active attention of the b

convention of 1010 containing the above recommendatio

filed by the American representatives with the Departme

but has never been sent to the Senate for consideration U

inquiry the reasons for withholding it have been ascerta

is now under consideration whether such reasons can not 

to the end that this convention or a similar one may b

to the Senate for action as the division of the damages 

ally to the degree in which each vessel may be in fault seem

the more equitable rule As a part of our investigation 

naire on the point was submitted to the judges of the 

courts of the United States they have quite uniformly 

favor of the change to proportional liability

The importance of the point is emphasized by the pr

article 10 of the International Rules of the Road at Sea 

vides Steam vessel hearing apparently forward of her 

signal of a vessel the position of which is not ascertain

far as the circumstances of the case admit stop her engine

navigate with caution until danger of collision is over 

occurred where collisions have been due to the negligence 

sel and with great damage to that vessel only but the 

has been held negligent because and for this reason 

master did not stop her engines that omission has b

contributory negligence with the result that the vesse

innocent has been required to share the cost of the dam

negligent boat notwithstanding apart from the technic

cumstances may not have required her to stop her eng

under investigation whether this rule should not be cha

much as the true test of diligence and skill is to nav

caution whether such caution requires stopping the eng

question of fact depending on circumstances

The losses resulting to the board from the existence o

provisions have been eery great

Another international item affecting traffic in foreign 

pending question relating to the immunity of Stateowne

and the proposal for an international convention modifyin

of international law in so far as merchant or commercia

operated by a sovereign State The question during the 

year has been particularly important in the light of a 

June 7 1026 by the Supreme Court of the United States 

that a ship owned and possessed by a sovereign gove
22 ELEVENTH ANNUAL REPORT UNITED STATES SHIPP

operated by it in the carriage of merchandise for hire is 

arrest under process based on a libel in rem by a priva

Federal district exercising admiralty jurisdiction 

Pesaro P

The subject has been considered at internal conferenc

to time including the international conference on marit

in Brussels in April 1926 and some aspects of it wer

agenda of the International Shipping Conference held 

1926

We have met this question so far as Shipping Boa

concerned by the suits in admiralty act 41 Stat at 

That act allows suits against the United States in 

States District Courts on causes of action arising out of 

of its merchant ships and provides that such suits may 

be determined on the principles that would apply in 

private parties and has pledged the Treasury of the Un

the payment of judgments so obtained This gives 

claims of an admiralty nature an effective remedy an

security

BUREAU OF REGULATION

During the period covered by this report the reg

tion of the board as performed by its Bureau of Regu

creasingly exercised To facilitate the conduct of the b

extensive inquiries were made throughout the period 

the status of all common carriers by water furnishin

tion service of any character in from or to the Unite

territories and possessions and of other persons 

section 1 of the shipping act As a result of this ef

revision of the somewhat similar data previously at 

now available and in use a comprehensive record of 

tion ant activities of 1758 carriers by water Of this 

carriers engaged in interstate commerce and 280 car

in foreign commerce of the United States are shown 

to the regulatory provisions of the shipping act as 

addition 228 forwarders and others furnishing wharfag

house or other terminal facilities in connection with 

riers by water are subject to such of those provisions a

cation to their respective activities

Formal Docket

This docket was availed of by 12 shippers and othe

year who under authority of section 22 of the shippin

in question the lawfulness of rates charges and practic

subject to regulation by the board In addition th

ducted three investigatory proceedings initiated by it u
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING B

ity of section 22 The proceedings on this docket in the 

volved the reasonableness of rates on particular commod

section 18 compliance by carriers with the provisions o

tion and the board stariff regulations in respect to requir

of maximum rates to be filed and kept open to public inspec

as to undue preference and unjust discrimination betwee

in respect to rates and practices under sections 16 and 17 

tions in connection with the filing examination and appro

ference agreements under section 15 In accordance with t

rules of practice pleadings were recorded hearings cond

oral argument and briefs received The decisions rend

number of these cases show that upon the facts the alle

the complaints were without merit while in others violatio

act by carriers were established In all 14 orders and 

were entered by the board on this docket during the year

Informal Docket

In conformity with section 24 of the board srules of pra

is maintained by the bureau what is known as the inform

Unsworn complaints statements and memoranda signe

sengers shippers and others alleging violation by carriers 

the regulatory provisions of the shipping act are entere

docket By interview and correspondence the bureau 

seeks to bring about understanding withdrawal adjustme

tlement of the particular controversy and to preserve o

amicable relations between the parties Fortyfive of these 

complaints were filed and given attention during the peri

report As in the past they related largely to freight 

guished from passenger transportation and while those in 

tariff interpretation and terminal transactions predomina

tions involving practically every angle of water transport

presented for consideration

Section 15 Agreements

By section 15 of the shipping act carriers and others 

purview of the statute are required to file with the board t

or complete memoranda of agreements entered into with oth

carriers or persons

fixing or regulating transportation rates or fares giving or recei

rates accommodations or other special privileges or advantages 

regulating preventing or destroying competition pooling or apport

ings losses or traffic allotting ports or restricting or otherwise re

number and character of sarongs between ports limiting or regula

way the volume or character of freight or passenger traffic to be 

in any manner providing for an exclusive preferential or cooperat

arrangement The term agreement in this section Includes und

conferences and other arrangements
24 ELEVENTH ANNUAL REPORT UNITED STATES SHIP

Approval by the board of an agreement filed in co

section 15 excepts it from the provisions of the Sher

Act the Wilson Tariff Act and amendments and acts 

thereto

Throughout the year the bureau was particularly ac

ing new conference agreements and modifications of th

filed and approved by the board under section 15 As 

original agreements and modifications thereof now re

bureau sfiles steamship conferences govern freight r

tices in connection with commerce of the United St

and import trade routes as follows

From North Atlantic ports to United Kingdom continent

coast of Italy Adriatic Black Sea and Levant IIabana We

Africa Australia

From Atlantic and Gulf ports to west Indies East Coa

Brazil River Plate West Coast of Mexico Central and 

Far East

From South Atlantic ports to Habana and to other foreign 

From Gulf ports to Mediterranean ports to Habana and 

ports

From Pacific coast ports to Far East Australasia west 

America Caribbean sea ports east coast of South America U

continental Europe and Scandinavia

From Philippine Islands to China Japan Saigon Straits S

India Australia and New Zealand

To New York from IIavre Honfleur Bordeaux and Southa

French origin Antwerp Rotterdam IIavre Honfleur and Sou

of Swiss origin

To North Atlantic ports from Levant ports

To Atlantic coast ports from HamburgBremen and from An

To Atlantic and Gulf ports from United Kingdom Brazil W

coast of South America Japan China Philippine Islands

To Pacific coast ports from Japan South China Straits Se

ated Malay States Java and Ceylon Philippine Islands Calc

of South America Scandinavian Baltic German Dutch Bel

ports

To Philippine Islands from IIong Bong

Carriers engaged in interstate service between Atlan

coast ports through the Panama Canal also maintain 

governing rates and practices in connection with freig

a number of carriers operating between ports on the Pa

wise operate under a cooperative agreement with refere

rates and practices

Passenger traffic between North Atlantic ports and 

dom Scandinavian continental European and Medit

is controlled by six conferences three of which are 

United States and three abroad Operators of pass

between Pacific coast ports of the United States and 

Australia and New Zealand also maintain a conferenc
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

designed to stabilize fares and promote the maintenance 

rules and regulations with respect to passenger transporta

committees of this conference are located in Japan Chin

Philippine Islands

In addition to conference agreements between carriers 

filed and given attention during the year 51 other 

agreements between carriers In large part these latter 

provide for the inauguration of through billing routes a

connecting carriers engaged in different trades

Tariffs

In compliance with the requirements of section 18 of 

the tariff regulations of the board issued under author

section 1099 freight and passenger tariffs were filed with 

during the year on behalf of the 213 interstate carriers su

board sjurisdiction At the date of this report there are 

in the bureau 19 separate agency instruments issued by 

carriers in favor of tariff publishing agencies in comp

the board stariff regulations Five hundred and sixty si

effective powers of attorney and concurrences are in the bs

at the close of the year

General

Among the general or miscellaneous activities engaged 

bureau but not easily classified under any definite headi

formal inquiries conducted to ascertain the facts in rega

tions claimed to exist between carriers affecting their rate

tices analysis of the variance in carriers practices in conn

terminal services at Pacific coast ports compilation of 

for the board smerchant marine planning committee rega

crential treatment by foreign nations as respects national 

goods carried therein preparation of data for use of th

delegates to the Economic Conference at Geneva and the 

tion of suggestions by carriers for amendments to the reg

tions of the shipping act

BUREAU OF OPERATIONS

The work of the Bureau of Operations has been carried 

divisions as follows 1 Industrial relations division 

sea service section 2 division of piers and wharves 3 

tions division and 4 port facilities division

Industrial Relations Division

The work of the industrial relations division of the 

Operations arising directly out of the provisions of th

marine act 1920 which imposes upon the board an oblig

69597273
26 ELEVENTH ANNUM REPORT UNITED STATES SHIP

whatever may be necessary to develop and encoura

nance of an American merchant marine may be sum

as follows

a Investigation and study of labor relations in 

merchant marine

b The readjustment of wages and working co

sound principles of economic justice and the peaceabl

labor disputes

c The promotion of better feeling between marit

and workers

d The compilation of data for comparative stu

labor rates and conditions

e Americanization of crews and general improveme

As will be seen from this summary the industrial re

of the Bureau of Operation is concerned primarily wit

matters Bearing in mind the importance of central

control of all such problems the division exercises it

two principal directions First it is concerned with 

crews manning the American merchant marine as a w

it is vitally interested in maintaining an efficient pe

board sown ships the board being not only a regulato

tional body but also the instrumentality through whi

Goverroncnt controls its fleet of merchant vessels

In this twofold capacity the board working throu

trial relations division endeavors to maintain friendl

representatives of the various organizations of emp

as with private and associated employers The divs

relating to wage scales and working conditions in 

merchant marine show a progressive trend toward m

ditions and a consequent lessening of costly labor dist

Carrying out the board s policy of collective ba

maritime workers and preserving a fair and imp

toward employees of Shipping Board vessels the div

ducted various conferences with representatives of the 

and engineer officers as well as with the unlicensed 

has also kept in touch with local port conferences betw

and Ion workers During the year agreeme

reached embodying no material change in wage scales 

for practically the same working conditions The ea

these agreements have been concluded is an indication 

labor situation which the board s policy has brough

work of labor adjustment has been minimized durin

strikes of any importance having occurred

As part of its work the division maintains a collect

foreign merchant marine wage scales and conditions o
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

for use in its studies of comparative manning requirement

of foreign and American operation of merchant vessels

Sea Service Section

The sea service section of the industrial relations divisio

origin from June 20 1917 At present it maintains branc

12 ports as follows Boston New York Philadelphia 

Norfolk Savannah New Orleans Mobile Galveston San 

Portland and Seattle

The main work of the sea service section is to man the 

merchant marine with Americans Prior to the World 

personnel on American ships was largely composed of 

estimates showing that before the establishment of the 

section only about 10 per cent of these crews were citiz

United States Figures for the fiscal year ended June 30 

that over 87 per cent of the seamen placed on Americ

through the activities of the sea service section were 

citizens

The sea service section is the only Federal agency that 

ing to influence the youth of America to follow the sea as 

livelihood Inasmuch as it is generally recognized that an 

deepsea merchant fleet can not attain maximum efficienc

is manned by American citizens the importance of th

the upbuilding of our American merchant marine must b

parent Local managers in charge of sea service offices 

parts of the country are instructed to give every legitima

encouragement to ablebodied young men who seriously 

follow the sea

During the period covered by this report 170 inexperien

men between the ages of 18 and 23 many of them from int

of the country have been afforded an opportunity to ado

ship as their life work Placed in the deck department 

ships these young men are rated as deck boys and p

rate of 23 per month Upon the ships officers is impose

of training them in all the details of ship operation and m

including rope work navigation cargo work and expe

stores A large percentage of these deck boys are now 

way to become efficient officers

During the past fiscal year special attention has bee

the physical condition of seamen placed aboard vessels by 

offices of the sea service section As a result seamen are 

thorough medical examination before being employed thu

more efficient and contented crews This works to the be

service in various ways not only increasing the efficien

operation but improving the morale of the personnel and 
23 ELEVENTH ANNUAL REPORT UNITED STATES SHIP

a healthier environment in which the hundreds of 

may receive their first impressions of sea service 

examinations also tend to obviate suits against the boar

ties alleged to have been incurred in the line of duty 

department of the New York office was reorganized d

three doctors now being employed to take care of the 

of work at this port Thoroughly equipped medica

have also been installed in the Baltimore and New 

hile at other ports the medical work has been ha

sea service section by the United States Public H

The results so far obtained more than justify the mo

involved in maintaining this highly necessary medical 

Records are kept of all seamen placed in employmen

showing in each case the name age description ad

kin past record as to conduct and ability and nam

which last employed In this way a complete record 

seaman from the time of his first employment aboa

Board ship From the fact that local managers of 

for the most part men who have in the past followed 

selves they are well qualified through personal expe

the best available men in the various ratings

The sea service section is the custodian of all reco

to the various wartime activities connected with sea 

as navigation and engineering schools and training sh

tion from these extensive wartime files continues to 

demand

The attached table chows the total number of men 

sea service section from July 1 1926 to June 30 1927
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING B

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30 ELEVENTH ANNUAL REPORT UNITED STATES SHIP

Piers and Wharves Division

In carrying out its primary function of developing 

an American merchant marine the Shipping Board 

the provisions of the merchant marine act of 1920 to 

subject of ports and water terminals and to develop 

all piers wharves and terminals that may come into 

by transfer from other departments of the Federal Go

Section 17 of the merchant marine act authorizes a

board to take over the possession and control of 

wharves docks warehouses terminals and terminal e

facilities including all leasehold easements rights of 

rights and other rights estates and interests therein o

thereto It is further provided in the above mentioned 

other similar properties and facilities as were acquire

Department or Navy Department for military or n

during the war emergency may be transferred by th

the board whenever he deems such transfer to be for th

of the United States

As a result of these provisions of law the board 

possession of certain valuable Army base termina

various points along the Atlantic seaboard namely at 

lyn Hoboken Philadelphia Norfolk and Charlesto

terminals the Shipping Board is engaged in the actua

only onethat at Hobokenwhich has been placed un

management and control of the Merchant Fleet Corp

Keeping in view the purpose of the merchant marin

primary ends to be attained the board has pursue

leasing these piers and port facilities to private interes

of operating them directly

In order to be of greatest possible service to the ports 

the properties to prove of maximum use in time of 

national peril these Army bases must be maintained 

state of repair The result has been that the various p

gradually been put into far better condition than w

taken over by the board

In order to give a detailed account of the five Army 

located at Boston Brooklyn Philadelphia Norfolk a

each one will be treated separately giving vessel an

tistics revenues accruing to the Shipping Board and 

expenditures for the fiscal year ended June 30 1927 A

at Hoboken is being operated by the Fleet Corporation 

activities at this point will be found in the report of 

Fleet Corporation
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING B

Boston Army Base

The Boston Army base has continued under the operat

Boston Tidewater Terminals Inc during the past fiscal y

siderable improvement has been shown in the matter o

returns to the board as well as in the derelopment of busin

is growing steadily

During the year 316 vessels docked at the piers load

tons of cargo and discharging 425 174 tons

According to the provisions of the lease under which t

Tidewater Terminals Inc is operating the property 

is to receive 663per cent of the net operating profit der

operations This year there accrued to the Shippin

32547 48

In connection with repairs to this base the board spe

of which 40000 was for the construction of a fender syst

for painting the piers and 5000 for repairs to the tracks 

lessee tools care of current repairs

Brooklyn Army Base

The Atlantic Tidewater Terminals Inc is operating t

lyn Army base under lease from the Shipping Board 

is to rur for a period of five years from December 1 19

The terms of the above lease provide that the board sh

150 00 per annum guaranteed rental for the use of these 

in addition 663 per cent of the net operating profit der

operations over and above the first 50000 per year whic

the lessee after the guaranteed rental is paid

During the fiscal year ended June 30 1927 194 vessels 

piers loading 291 578 tons of cargo and discharging 327 430 

The revenue accruing to the board for this period inc

guaranteed rental was 184 951 55

Repairs to the base during the year amounted to 4853

leaving a profit to the Shipping Board While the bo

little for repairs the lessee paid out of operations s

amounts for current repairs in line with his obligation to 

terminal in good condition

Philadelphia Army Base

The Philadelphia Army base is leased to the Merchan

house Co of Philadelphia for a period of five years 

ending August 15 1927 This base consists of three piers 

and C Pier B is the principal pier of the three and in a

with the terms of the lease the board receives as a guara

rental for its use 100 0 per annum For Piers A a

lessee pays 50 per cent of the gross revenues received from 
32 ELEVENTH ANNUAL REPORT UNITED STATES SHIP

In addition to the piers and their facilities the less

of approximately 36 acres of land adjacent to them 

used as a classification yard for railroad cars and 2

been developed into a lumber concentration yard for 

lumber etc

There docked at Pier B during the year 405 vessels 

tons of cargo and discharging 218 691 tons At Pie

vessels docked loading 7421 tons and discharging 117

resenting the guaranteed rental from Pier B and 50 

gross revenue from Piers A and C the Shipping B

this year 118 290 97

In addition to what the lessee spent for current rep

the board paid out 72387 6 for structural repair

ments Of this amount 60000 was spent for the co

fender system and the remainder for miscellaneous i

Norfolk Army Base

The Shipping Board leased the Norfolk Army base 

Tidewater Terminals Inc for a period of five years 

ber 1 1925 Simultaneously with leasing the Army 

folk Tidewater Terminals Inc leased from the c

the municipal terminals and is operating these two 

connection with each other This joint operation wa

by the board in drawing up the lease and it was pro

lessee pay to the Shipping Board 331per cent of the 

profit derived from this joint arrangement the les

receive 331 per cent and the city of Norfolk 331 p

During the fiscal year just ended there accrued to 

sum of 51720 9

The necessary repairs made at the Army base 

158 226 68 Of this amount 72000 was spent on t

tem 53000 for the construction of a pile breakwa

repairs to pier floors and 5000 for replacement o

above is in addition to the amount spent for repairs 

Charleston Army Base

The Charleston Army base is leased to the Port 

mission of Charleston S C and is being operated 

terminal

This base for various reasons has yielded practical

the board Business was better at the terminal du

than any previous year since the base was leased

The board spent a total of 37935 43during the ye

14000 of which was for the railroad tracks and 0
ELEVENTII ANNUAL REPORT UNITED STATES SIIIPPLNG 

reconstruction of platforms the remainder being spent 

laneous items Current repairs were paid for by the les

Investigations Division

The investigations division handles all matters perta

Bureau of Operations that are not assigned to other 

the bureau Its duties are therefore of a miscellaneous 

cover a wide range

In addition to carrying on its routine functions whic

sufficiently described in previous issues of the annual 

division during the year undertook a study of the marin

services of the Federal Government with a view to 

whether or not it would be practicable to have this service 

by vessels belonging to the American merchant marine 

of the investigation seemed to indicate that the peace tim

of military and naval personnel and supplies might with 

to all interests concerned be handled by the country sco

riers following the practice now prevailing in all the le

time nations of the world

Upon completion of the report hearings were held b

Coordinator in order to develop the attitude of the Army 

Panama Canal authorities In these hearings it soon bec

that representatives of the three establishments referr

averse to any drastic change in the existing order The he

therefore discontinued and the whole subject was refe

Chief Coordinator to the chairman of the Federal Traffic 

further investigation and study

During the year the investigations division has handle

board matters coming up for action before other Fede

ments as for example the compilation of preliminary re

request of the State Department for use in connection w

ternational Economic Conference at Geneva

Rail carriers belonging to the Southern Freight Associa

in their latest landgrant equalization agreements file

Quartermaster General and made efrective as of Janua

eliminated both the Shipping Board and the board sMer

Corporation from participation in rate concessions allowe

agreements the investigations division was called upon 

the situation and see what could be done through the Fed

Board to bring about a change of attitude on the part of 

On February 21 1927 the matter was formally placed 

Federal Traffic Board with request that they adopt wha

ures might be necessary and proper in order to assure the 

FIeet Corporation of equal treatment with other Governm
34 ELEVENTH ANNUAL REPORT UNITED STATES SHIP

ments in the benefits arising under landgrant equal

ments It was suggested that retaliatory steps against 

roads might well be taken by the Federal Traffic Board 

tive routing of Government business provided the carr

otherwise be convinced of the injustice Qf their action 

of arguments furnished by the investigations division 

Traffic Board has been endeavoring to convince the ca

discriminating against the board and Merchant Flee

that such action is not justified

One of the duties of the investigations division in co

the preparation of reports on various shipping problem

pilation of the annual report of the Shipping Board

Port Facilities Division

Section 8 of the merchant marine act of 1020 prov

Shipping Board jointly with the War Department 

take a program of promoting encouraging and dev

and transportation facilities in connection with wat

The duties prescribed by the act are to invetigate terr

and zones tributary to ports taking into considerat

of transportation by rail water and highway and the 

tion of the flow of commerce to investigate the cause 

of commerce at ports and the remedies applicable t

vestigate the subject of water terminals including 

docks warehouses apparatus equipment and applianc

tion therewith with a view to devising and suggesting t

appropriate for different locations and for the most ex

economical transfer or interchange of passengers or 

tween carriers by water and carriers by rail to adv

munities regarding the appropriate location and plan o

of wharves piers and water terminals to investig

ticability and advantages of harbor river and port 

in connection with foreign and coastwise trade to in

other matters that may tend to promote and encoura

vessels of ports adequate to care for the freight 

naturally pass through such ports

Pursuant to the abovementioned act considerable 

been made during the year in carrying on this wor

facilities division of the Bureau of Operations

The division sPort Series reports concerning whi

have appeared in previous issues of the annual rep

brought nearly to completion The following table s

dition of the volumes of the Port Series as of Jun
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

Ser al Dean vol Noof Subject tine Percent comple ageof July 1 1927 Sml ume Vol Noof Subject 

1 1 Portland Nfe 100 Upper San Francisco B

12 Boston Afars 1W Gent Cruz Calif 

1 3 Alobile Ala 100 Alonterey Calif f

Pensacola Fla 100 1 13 LOS Angeles Calif 

14 PhiladelphiaPa 100 Sao Diego Ca

Chester Pe 100 San Luis hbal Cali

Camden N I IN 14 Port ArthurTe

Wilmington Del IN SabinaTer 

is New OrleansLa 100 BeaumontTe

16 Galveston Tex 100 Orange Ter 

Ilouston Tex 100 1 15 Norfolk V 

Terns City Tex 100 PortsmouthV

1 7 Seattle Nash IN Newport NewsVa

Tacoma Nash IN 16 Baltimore h1d 

Everett Wash 100 Washington D C 

Bellingham Winh 100 Alexandria Va 

Crays IIrbor Wash 1001 117 The lrorts at llwad 

18 Jacksonville

Fernandina Fla

Fla IN 18 The parts of souther

Almmi Fla 100 IN England Providence RI 

Fey VestFla 100 Newport R I 

TempsFla 100 Fall River Nfno

South Been Grande Fla 100 New Bedford Mass 

19 Charleston SC IN New London Conn 

Wilmington N C 100 New naves Co

1 10 Savannah Go

BrunswickOa 100 Bridgeport Co

Norwalk Con

1 11 Portland Oreg Rod st mfor Conn 

Astoria Ore IN 19 Pascagoula Mis

Va vc Wash 100 Gulfpart Alias 

12 Sao Francisco Calif 100 120 New York N Y 

UaklnndCalif 100 121 San Jun PR 

Dcrkelel Calif IN Para P It 

Riti m oilCalif 100 I yn Panama Came parts 

1 Available for distribution 1 Now In Government Printing 

Of the reports contained in the foregoing the follow

ceived from the printer in published form during the pa

No 10 The Ports of Baltimore Bid Washington D C and A

No 17 The Ports of IIawaii

No 20 The Port of New York in 3 volumes

At the close of the year the following reports were still 

of the Public Printer

No 12 The Ports of San Francisco Oakland Berkeley Richmo

Francisco Bay Santa Cruz and Monterey Calif

No 15 The Ports of Norfolk Portsmouth and Newport News V

No 21 The Parts of Porto Rico

Manuscripts of the reports on Providence and Newpo

Fall River and New Bedford Mass were completed duri

These reports are to be published as part of Port Se

The Ports of Southern New England and will be com

the manuscript covering the ports of New London N

Bridgeport South Norwalk and Stamford Conn which 

ing completion at the close of the year

With the practical completion of the Port Series re

tion has been directed to revising the older reports of 
36 ELEVENTH ANNUAL REPORT UNITEIY STATES SHIPP

Work on the revision of Port Series No 1 The Port 

Me was about 50 per cent completed on June 30 

Series No 2 The Port of Boston No 3 The Po

Ala and Pensacola Fla and No 6 The Ports 

Houston and Texas City Tea are also in need of 

preliminary work has been done in order to bring thes

during the coming fiscal year

Steps have also been taken to bring out an annual p

Port and Terminal Charges at American Ports 

name implies will be devoted to current information 

and accessorial charges It will be brought out in c

and will be kept as nearly up to date as practicable

Work in progress at the close of the year included th

of the Port Series reports now estimated at 98 per c

the revision of the report on Portland Ale and the c

the study Transportation in the Mississippi and O

now in course of preparation in cooperation with the 

ment

Six Shipping Board employees were engaged in t

July 1 1926 and one was added during the year On M

four of these employees were assigned to the foreignp

undertaken jointly by the Shipping Board and the D

Commerce

Study of Foreign Ports

On May 3 1927 the Shipping Board approved a 

study of foreign ports and related subjects and author

facilities division of the Bureau of Operations to un

work in cooperation with the Department of Commerce

The program contemplates a series of studies of the mo

foreign ports patterned after the present volumes on 

ports of the United States the Port Series reports 

been prepared jointly by the board and the War Departm

subjects to be treated in conjunction with the Departm

merce include studies of stowage factors and the stowa

cargoes cargo handling foreign warehousing and bun

tions throughout the world

Active cooperation with the Department of Commerc

tuted on May 16 1927 when five Shipping Board em

assigned to this duty in the Bureau of Foreign and Do

merce Preliminary work has already been done in con

studies of approximately 20 of the leading ports of E

smaller European ports will be covered in a single volum

being treated very briefly The time intervening betw

auguration of the program and the close of the fiscal y

devoted to organization of the work at home and abroa
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

The joint force is also revising the bulletin Stowa

Cargoes published by the Department of Commerce in 

bulletin is being enlarged to give a more complete de

practical operation and problems of cargo stowage an

tains a complete compilation of rules and regulations 

the handling of inflammable explosive and otherwise 

cargoes

There has been undertaken a survey of American car

methods which it is felt will be of great value to ship o

shipping companies This study embraces data on the mo

and economical cargo handling methods that have been d

individual American steamship and stevedoring compan

operators and others

A special investigation is also being conducted by the 

of the Shipping Board and Department of Commerce 

warehousing including warehouse facilities and charge

information concerning the distribution of commodit

warehouses in the interior and at the ports

Complete reports on fuel bunkering throughout the w

course of preparation These will describe the facilities 

ing the types and amounts of fuel available and the late

tion on rates and charges

BUREAU OF CONSTI UCPION

The duties of the Bureau of Construction are prim

motionalthat is to say they bear chiefly on the priva

and privately operated merchant marine as distinguished 

activities of the board having immediate relation to the 

the Government owned fleet Among the activities of the 

duties arising under sections 9 and 12 of the shipping ac

sections 11 and 23 of the merchant marine act 1920 th

been assigned to the commissioner in charge of the bu

vision of the Diesel conversion program authorized by 

June 26 1924 amending section 12 of the merchant marin

having in view the installation in vessels belonging to 

ment of internalcombustion propulsive machinery and 

of other changes necessary to convert them into modern m

Transfers to Foreign Registry etc

With a view to the protection of the American merch

by preventing permanent loss of control of vessels deem

to our merchant marine it is made unlawful by sectio

shipping act 1916 to sell transfer or mortgage or e

regulations prescribed by the board to charter any vesse

from the board or any vessel documented under the l

United States to any person not a citizen of the United S
ELEVENTH ANNUAL REPORT UNITED STATES SHIPP

put any such vessel under a foreign registry or flag 

obtaining the board sapproval That part of this pro

relates to chartering a vessel under such circumstances 

regulations prescribed by the board has been covered 

of the board which authorizes the charter of any such 

person not a citizen of the United States for any term 

one year In all cases where it is proposed to sell or m

vessel purchased from the board or documented unde

the United States to any person not a citizen of the U

such sale or mortgage must first be approved by the Shi

and when it is proposed to put any such vessel und

registry or flag notwithstanding the ownership of th

remain in a person who is a citizen of the United States 

of the board must first be obtained

As indicated above the policy controlling the board 

such sales to aliens or transfers to foreign registry 

vessels of a type and kind deemed by the board nec

upbuilding of the American merchant marine from pass

jurisdiction of the United States Government by the

foreign flag or to have any conflict in respect to the us

vessel in times of national emergency because of their 

persons not citizens of the United States

Under the provisions of section 41 ofthe shipping 

board may impose conditions when according its ap

section 9 of the shipping act 1916 and when condit

imposed by the board their violation constitutes a misd

shall be punishable in the same manner and shall subj

to forfeiture in the sdme manner as though the act 

approved had been done without the approval of the bo

The extensive use of vessels in the illicit transporta

United States of alcoholic liquors commonly referred t

ning caused the Department of Justice to request the 

the above mentioned power in affixing to its approval o

vessels to foreign registry a condition that they should 

the transportation to or from ports of the United S

alcoholic liquors and such a condition has been imposed 

of cases Where it is clear that a vessel because of its t

Is unfit for such service as that prescribed by the abo

the board may for special reasons omit the condition fro

approval As the smaller type of vessel is the type us

such service the board frequently permits the issue of 

transfers of vessels without condition when the appr

wise proper provided the vessel exceeds 2500 dead wei

The board has also imposed a condition in some case

whose transfer to foreign registry has been approved m
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

after operate in commerce with ports of the United States 

ing a condition of this kind the board has in view protec

of the American merchant marine from the operation of 

transferred to a flag which makes operation cheaper than 

American flag

Conversely to the power of the board to impose condit

attitude of the Canadian Government that vessels shall 

cepted for Canadian registry when conditions are thus 

the approval To protect the citizen from the deadlock w

otherwise result the board has in several instances issued 

of approval of transfers to Canadian registry without inse

formal certificate of approval the condition affixed to t

accepting in lieu of its inclusion in the formal certificate a 

the parties interested that the penal sum named in the bon

paid if the condition in fact annexed to the approval and 

in the bond is violated

A person wanting the approval of the board to any s

transfer is required to present a formal application con

relevant particulars including a certificate of the collector 

at the home port of the vessel certifying the name of 

registered owner and what if any mortgages or liens 

The last requirement namely certifying the names of mo

lienors though not required by law is usually but not 

quired by the board as vessels should not be transferred 

registry if creditors in the United States have claims 

vessel

The following is a statement of the action of the board 

tions under section 9 of the shipping act 1916 from July 

June 30 1927
40 ELEVENTH ANNUAL REPORT UNITED STATES SHIP

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ELEVENTII ANNUAL REPORT UNITED STATES SIIIPPIN 

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44 ELEVENTII ANNUAL REPORT UNITED STATES SHI

The transfers to foreign registry were distributed a

tries as follows

Construction Loan Fund

Under the provisions of section 11 of the mercha

1920 the board was authorized during the period of f

the enactment of that act June 5 1920 to set aside 

of the revenue from sales and operation a sum 

25000to be known as its construction loan fund 

act was amended by the act of June 6 1924 amon

made by which amendment was the provision exte

for which loans might be made to the outfitting and 

vessels already built with the most modern the mos

the most economical engines machinery and commerc

The original act was further amended by the act of A

among the changes made by which amendment was 

of the time limit of five years referred to above wit

total amount of the fund originally contemplated n

000 could be set aside and by the terms of which 

clearly defined and confirmed as a revolving fund

The board is permitted to use the fond thus created 

it thinks proper on such terms as it may prescribe in 

to aid citizens of the United States in the construc

yards within the United States of vessels of the b

efficient type for the establishment or maintenance 

lines deemed desirable or necessary by the board and 

outfitting and equipment in shipyards within the U

Steam Motor Rail Urigg

Registry 

Num Gross Num Gross iNUm Gross Num G

her tons be tons her tons her 

Au ne 1 

British 1 643 4 301 1 663 4 

Canadian S 26886 13 2950 2 

Chinese 1 3 

Colombian 2 2 Eli 1 13

Cuban1 468 3 145 

Dominic 1 64 

French 1 2806 2 3008 

Greek

Germani 1 5106 

4 10636 

Honduran 2 172 

Italiav 8 233 5fi6 i 

Japanese 9 27502 1 362 L 

Mexican 1 92 3 

Nnrweginn I 2454 

Newfoundland 1 135 

Netherlands 1 14 

Panama 1 b9 

Philippine 2 5270 

Portuguese 1 119 

Venezuela 3 86 

6Panis h 1 1233 

38 107 989 29 693 7 6959 8 I 

Total 

Construction Loan Fund

Under the provisions of section 11 of the mercha

1920 the board was authorized during the period of f

the enactment of that act June 5 1920 to set aside 

of the revenue from sales and operation a sum 

25000to be known as its construction loan fund 

act was amended by the act of June 6 1924 amon

made by which amendment was the provision exte

for which loans might be made to the outfitting and 

vessels already built with the most modern the mos

the most economical engines machinery and commerc

The original act was further amended by the act of A

among the changes made by which amendment was 

of the time limit of five years referred to above wit

total amount of the fund originally contemplated n

000 could be set aside and by the terms of which 

clearly defined and confirmed as a revolving fund

The board is permitted to use the fond thus created 

it thinks proper on such terms as it may prescribe in 

to aid citizens of the United States in the construc

yards within the United States of vessels of the b

efficient type for the establishment or maintenance 

lines deemed desirable or necessary by the board and 

outfitting and equipment in shipyards within the U
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING B

of American vessels already built with engines mach

commercial appliances of the most modern and efficient ki

The board can make no loan for a longer period than 

and if it is not to be repaid within two years from the 

the first advance on the loan is made the principal shall b

in installments at intervals not exceeding two years Ea

ment shall be not less than 6 per cent of the original amo

loan if the installments are payable at intervals of one ye

or an amount not less than 12 per cent of the original 

the loan if the installments are at interval sexceeding on

length The loan may be repaid at any time on 30 day

notice to the board with interest computed to date of p

Loans made since the amendment of June 6 1924 bear 

rates to be fixed by the board payable not less freque

annually with minimum rates not less than 5 per cen

interest period in which the vessel is operated exclusively 

wise trade or is inactive and not less than 41I per ce

any interest period in which the vessel is operated in fore

No such loan can be for a greater sum than onehalf t

the vessel or vessels to be constructed or more than on

cost of the equipment authorized for a vessel already b

security is furnished in addition to a first preferred mo

the vessel or vessels in which event the board may in

amount loaned but such additional amount shall not e

half the market value of the additional security furnish

no case shall the total loan be for a greater stmt than 

of the cost of the vessel or vessels to be constructed or 

twothirds of the cost of the equipment and its installation 

already built

In the last annual report pp 456 it was stated tha

ments had been entered into during the fiscal year 192

following loans on which however advances had not then b

a Two million five hundred thousand dollars to the 

Miami Steamship Corporation in aid of the constructi

vessels then being built by the company named at the 

of the Newport News Shipbuilding Dry Dock Co New

Va at an estimated total cost of not less than 1000 

were made during the progress of the construction of the t

the notes taken being the joint and several notes of the 

Miami Steamship Corporation and the Clyde Steam

which notes were also secured during the construction 

a deed of trust under the laws of the State of Virginia 

vessels here referred to have been named respectively Iro

Shawnee The Iroquois was completed and documented a
46 ELEVENTH ANNUAL REPORT UNITED STATES SHI

of New York on May 12 1927 a preferred mortga

concurrently

1

with its delivery and documentation f

791 000 to secure the total amount advanced to 

account of the construction of both vessels The Shaw

to be completed during July 1927 The total adv

account of this loan during the fiscal year for both 

gate 1947 000 The amount remaining to be ad

commitment for the loan is therefore 553 000

b Three million dollars to the American Line S

poration in aid of the construction of a vessel now 

that company at the shipyards of the Newport New

Dry Dock Co the estimated total cost of which 

than 6000 Advances were made during the p

construction of the vessel and the notes taken were 

several notes of the American Line Steamship Corp

Atlantic Transport Co of West Virginia both of w

are controlled through stock ownership by the Interna

tile Marine Co and the notes were secured during t

period by a deed of trust under the laws of the Sta

This vessel has not yet been completed but work is ac

ing and the total amount advanced during the fiscal y

of the loan aggregates 262 500 The amount rema

vanced on the commitment for this loan is therefore 

c One million eight hundred thousand dollars 

Steamship Lines Inc in aid of the construction 

which have been named the YarmoutA and the Ev

built by that company at the shipyards of William 

Ship Engine Building Co Philadelphia Pa the 

cost of both vessels being not less than 3600 0 

Steamship Lines Inc has organized a subsidia

named the Nova Scotia Steamship Corporation to b

these vessels Subsequent to the malting of the loa

was decided that advances would not be requested d

struction period of the vessels but the loan would 

time of their completion and a preferred mortgage ta

accordingly Neither vessel has been completed du

year but work has progressed on them and they a

completion As neither vessel has been completed no 

been made on account of the loan and the amount r

advanced on the commitment for this loan is there

The only new commitment made during the fisca

other loan to the Cherokee Seminole Steamship Cor

sum of 952 500 in aid of the construction of the ste

quin which vessel has been completed having bee
ELEVENTH ANNUAL REPORT UNITED STATES SKIPPING 

shipyards of the Newport News Shipbuilding Dry 

Newport News Va at a total cost of1924 34 54 Adv

made during the fiscal year and during the construction 

the vessel The vessel having been completed a preferre

was taken to secure the amount advanced the notes for 

ment of which are the joint and several obligations of th

Seminole Steamship Corporation and the Clyde Steamsh

A list of all loans heretofore made from the construction 

in addition to those here mentioned appears on page 45 of 

report of the board for the fiscal year ended June 30 192

The total amount heretofore loaned on vessels which 

completed is8258 000 representing six loans made to fiv

companies in aid of the construction of nine vessels 

amount thus far advanced on loans not yet completed is

thus making the total amount of all payments thus far 

the construction loan fund on account of loans 104650

amount of the present commitments on loans which have 

authorized but have not yet been completed is 5090 

amount at present credited to the construction loan fu

552 6 26 including repayments on account of the p

outstanding loans which repayments amount in the ag

916 G98 34 From the time of the commencement of th

tration of the fund there has not been a default in conn

any of the loans in the payment either of interest or of i

on account of principal

In addition to the commitments in the form of loans mad

persons the construction loan fund is also subject to co

created under the provisions of se tion 12 of the merch

act 1920 as amended by the act of Jime G 1924 incident to 

conversion program of the board under the provisions of 

board may make transfers from the construction loan fu

obligations in excess of funds otherwise available for 

provided however the total amount expended on the Die

sion program may not exceed 25000

During the Sscal year repayments on account of the o

loans amounted to 521 108 67and deposits were made to 

of the fund in the aggregate sum of 14362 954 34thus 

total increase of the fund during the fiscal year of 150

During the year the sum of3162 000 was paid out on 

loans

In respect to loans in connection with which advances 

during the construction period as a preferred mortgage 

taken on the hull of a vessel mortgages or deeds of trus

thereon under the provisions of State law as above me
48 ELEVENTH ANNUAL REP01ZT UNITED STATES SHIP

secure advances during the construction period To 

advances the builder is required to give a bond to the 

guaranteeing the completion of the vessel for the c

Persons applying for loans are required to submit a 

cation giving relevant information touching their bus

and financial ability together with evidence of their e

ability to successfully operate vessels and a thoroug

is given by the credit department of the board concern

cial standing of the applicant Such formal applicati

tain the information set forth in the ninth annual 

board at page 69

Incident to the security of the board and to the m

by it on the vessels in aid of whose construction loans 

surance is required in companies and amounts satis

board The question of insurance involves factors 

curity for the loan made in the event of damage to 

vessels Section 12 of the shipping act 1916 directs 

ascertain what steps may be necessary to develop an 

insurance system as an aid in the development of 

merchant marine The board has construed this mand

as a duty the requirement that so far as practicable 

vessels in respect to which loans are made shall be 

owner with American marine insurance companies

Diesel Conversion Program

The work of converting certain steam freighters of 

9000 dead weight tons each to modern motor ships co

as the Diesel conversion program of the board deta

which also appear in the ninth annual report p 7

tenth annual report p 48 has progressed well to

tion The initial plan contemplated the conversion 

and contracts for engines were awarded accordingly 

in the tenth annual report p 49 One company 

faulted in its contract for the engines for two of the 

the initial program of the board has become limited 

sion of 12 vessels During the year however pla

initiated having in view an extension of the program 

version of additional vessels but no contracts have yet 

As set forth in the tenth annual report p 51 co

installation of engines in five of the vessels were a

the fiscal year ended June 30 1926 During the past 

following additional installation contracts were awa
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

Covtraetor Date of

contract Vessel 

Newport

Do

News Shfpbudding Dry Dock Ca July 9 1925 Swokba 

Aug 18026 City ofRvrill

Do Dec 311026 City ofDHout 

Da Apr 129 Yo hich

Tietyn Lang Apr 15 1b27 Seminole 

Betblchem Shipbuilding Corpooulon May 2 1927 west Gram 

Total 

The following contracts for equipment and materials 

during the year supplementing other contracts fo

reported in previous annual reports

12 IIabrake horsepower auxiliary Diesel engines from the Worth

ington Pump Jiaehinery Co in the amount of 

2 sets line shafting and accessories from Erie Forge Co 

Electric wires and cables from General Electric Co 

Changes and extras to miscellaneous contracts found necessar

and duly authorized by the board 

The total contract commitments for the year ended Ju

aggregate 27536 06 The total contract commitmen

inception of the Diesel program to June 30 1927 are 9623

The complete testing of all machinery and equipme

into the work was continued throughout the year durin

turing periods and upon deliveries from contractors 

are most exhaustive covering not only the proper fun

machinery and equipment but physical testing of materi

into their manufacture

Especial mention is made of the 30day continuous 

large Diesel engines through which any latent defect of 

design can be developed and corrected thus saving what 

haps cause serious and expensive delays of vessels at sea 

into service The wisdom of requiring these tests has be

throughout the entire program and they have also bee

benefit to the engine builders in the perfecting of mari

Diesel engines in the United States through the experie

and data secured at first hand which would be difficult 

any other manner These data have been made public fo

of all lines of engineering in any way related to the pr

internalcombustion engines or auxiliary equipment Th

tion is also of great value to the profession and to prosp

of internalcombustion engines

During the year main and auxiliary engines were 

delivered by the following contractors

One main engine by Worthington Pump Machinery Corporat

Three main engines by McIntosh Seymour Corporation
50 ELEVENTH ANNUAL REPORT UNITED STATES SHIPP

Three main engines by Busch Sulzer Bros Diesel Engine Co

One main engine by Hooven Owens Rentschler Co

Nine auxiliary engines by McIntosh Seymour Corporation

Eighteen auxiliary engines by Worthington Pump Machine

The remaining main engine of 12 contracted for 

New London Ship Engine Co will probably be 

August 1927

The following tabulation presents the type cost a

the engines installed The items enumerated do not 

articles as engine room pumps and other apparatus dec

motors or special navigating devices In addition to be

with modern internalcombustion engines and auxiliarie

have also been furnished with electricdriven pumps w

ing gear and other auxiliary equipment thus placin

class comparable with the latest built motor freight v

world
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

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52 ELEVENTH ANNUAL REPORT UNITED STATES SHIPP

The following vessels having been completed and un

cessful trial trips were placed in commission on regul

routes

The bl S Tampa equipped with Worthington Pump 

Corporation engines was placed in commission Novem

went directly from the shipyard to Savannah loade

Baltic ports returned to the United States and on s

was routed to Buenos Aires returning thence to New Y

ning with her third voyage she is now in regular service 

York Australia and Indian ports via Panama and Su

The Dl S Unicoi with the same equipment as the D

was placed in commission December 21 1926 comple

voyage between New Orleans and west Mediterranea

was then also placed in regular service between New Yo

and Indian ports

The Dl S West Honaker equipped with McIntosh 

engines was placed in commission November 23 19

first voyage between Charleston S C and Bremen 

New York where she was also placed in regular se

New York Australia and Indian ports

The Al S West Cusseta with same equipment as Al 

aker was placed in commission January S 1927 in th

Australia and Indian service has completed first v

now on second

The M S Crown City with same equipment as M 

aker and Al S West Cusseta was placed in commiss

17 1927 in the New York Australia and Indian s

now on her first voyage and reported to be operating 

The Al S Sauwokla equipped with Busch Sulzer mai

ington auxiliary engines was placed in commission M

Having completed her first voyage between North A

and Buenos Aires she was placed in regular service 

York Australia and Indian ports

The DL S City of Rayville with same equipment 

commission April 27 1927 in the New York Austral

run

The M S City of Dalhart is practically completed 

to go into commission in July 1927

There remain four vessels to be completed namely 

chichi now being equipped at Newport News Shipbu

Dock Co Norfolk M S Seminole at Tietjen La

DI S West Grama at Bethlehem Shipbuilding Corp

Ricer plant and Al S Wilscox The contract for th

cox is not yet awarded due to delay in completing the 

It is expected the three first mentioned will be complet
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

of the calendar year 1927 and that the M S 1Vilseox w

pleted early in 1928

During the progress of work in the various shops on 

these vessels former engineers of steamships were placed 

and inspectors and in many cases followed the engines to 

where engines were installed and then assigned to the 

as chief or assistant engineers

The motor ships which have thus been added to the 

merchant marine have justified the program and place o

better position to compete with foreign lines whose n

consists predominantly of motor ships

Work under Section 23 Merchant Marine Act 1920

Under the ruling of the Treasury Department referre

tenth annual report of the board p 57 the provision

23 of the merchant marine act 1920 are no longer a

current transactions but a number of cases are pending 

Treasury Department involving earnings prior to 192

involving action of the board in determining whethe

and kinds of vessels built are acceptable to the board 

these cases relate to profits arising prior to 1922 fina

the board is not practicable until the income tax retur

are audited by the Treasury Department In many ins

audits are now in progress During the fiscal year th

cases were reported by the Treasury Department to the 

the approval of the board was given to the vessels involv

Interlake Steamship Co with respect to the steamsh

Schwab the Pioneer Steamship Co with respect to th

Phillip D Block the Nilson Transit Co with res

steamship lames McNaughton and Crowell Thurlo

spect to the steamship A L lent and steamship Th

The steamship Malolo incourse of construction by th

Hawaiian Steamship Co at a cost of about seven and a 

dollars is the most important item which has been pres

board under the provisions of section 23 This vessel i

ticularly referred to in the tenth annual report p 56 

completed during the past fiscal year to the point where 

was had in the course of which trip however she was 

with another vessel resulting in serious damage to th

ltalolo The vessel was towed to the port of New Y

damage inflicted by the collision is there being repai

vessel will otherwise be completed at that port Had 

for such collision she would doubtless have been put in 

by the Matson Navigation Co in the service between Ca

the Hawaiian Islands The fact that the vessel rem
54 ELEVENTH ANNUAL REPORT UNITED STATES SHIP

notwithstanding the gravity of the damage done revea

qualities of the plans upon which she has been built

The provisions of section 23 so long as they were in 

to a citizen who owned an American vessel exemption 

taxes therein mentioned which would otherwise have b

on the earnings of the vessel when operated in the fore

vided the owner during the period to which the taxe

vested in building in shipyards in the United States 

of a type and kind approved by the board or deposit

equivalent to the tax in a trust fund to be used for tha

amount thus invested to be three times the amount of the 

BUREAU OF LAW

During the fiscal year ended June 30 1927 several 

taken place in the organization of the Bureau of Law 

ping Board by resolution dated October 1 1920 co

legal departments of the board the Fleet Corpora

United States Protection and Indemnity Agency in one 

The following is an excerpt from the resolution refe

Be it further resolved that the said commissioner in charge 

of Law shall have full authority without further approval of th

solidate with the Bureau of Law all the legal department of th

Protection and Indemnity Agency Inc and to have and posse

legal department and individuals therein employed the sa

authority as is given over the said Bureau of Law by this res

said legal department when so consolidated with the Bureau 

handled by the general counsel and the commissioner in charg

of Law in the same manner as hereinbefore indicated with res

Bureau of Law as constituted by this resolution

Pursuant to the provisions thereof this bureau thence

charge of all litigation and legal work of any nature 

which the Shipping Board Merchant Fleet Corporatio

States Protection and Indemnity Agency were inte

result of this consolidation there were in the Bureau 

June 30 1927 45 attorneys and 87 clerical personnel E

additional work the pay roll of the Bureau of Law has 

nearly 20000 and further reductions are expected a

consolidation is completed This reduction has been ac

spite of the necessity of organizing a district office at Po

and the addition of 7 attorneys 10 clerks and 7 stenog

over from the Protection and Indemnity Agency to h

work and other legal matters which developed

The work of the Bureau of Law is carried on in f

namely litigation and claims division contracts opinio

and special assignments division admiralty division 

tion of navigation laws division
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

Litigation and Claims Division

In the appendix will be found a statement showing t

litigation and the amounts involved as of June 30 1927 

parative statement showing changes since June 30 

increase in the cases on hand is due to the assumption of a

of the United States Protection and Indemnity Agency 

cases are principally cargo damage cases and personal i

The physical transfer and control of the United States 

and Indemnity Agency litigation was not actually ass

January 1 1927 at which time 1070 litigations consistin

for personal injuries and cargo damage amounting to 123

were taken over Between January 1 1927 and June 3

new cases were filed amounting to 2642 485 malting 

1269 cases involving 20788 66 02considered and hand

the six months Since January 1 1927 183 cases have 

settled

2

and closed out in which the total amount c

847 09 30and which were settled for 209 966 

to the 183 cases mentioned 40 additional cases in which 

involved is 78154 65 and the amount which is to 

settlement is 45309 98 have been settled so far as 

arrived at are concerned but the payments had not ac

put through and paid on June 30 1927 During the s

the bureau has been successful in dismissing for lack 

tion discontinuing or otherwise finally disposing of 207 

in which the total amount involved was2140 998 54 

at present on hand 839 cases involving 15018 86162

It will be seen from the foregoing that approximately 

of the United States Protection and Indemnity Agenc

taken over and received in new cases has been disposed of 

ary 1 1927

The figures pertaining to the Court of Claims cases re

tically the same as last year notwithstanding that many c

taken place Although these cases are handled primarily 

partment of Justice the litigation division personnel act

that department in taking testimony writing briefs a

the cases

The principal cases disposed of during the past fisc

those of the Standard Transportation Co and the Standa

in which the Government was sued for286079 06 Co

were filed by the Government and the Government was s

securing affirmative judgments aggregating 1251 867 22 

for certiorari in these cases were denied by the Supreme C

United States and the money has been paid

The Brooks Scanlon case and other cases involving the 

ment rights of former owners of contracts for the cons
56 ELEVENTH ANNUAL REPORT UNITED STATES SHIP

ships requisitioned by the Government were tried in 

Claims pursuant to the principles and rules laid down 

of the Supreme Court and the Government was succ

ing the recovery in each case to a comparatively sm

of the amounts claimed

The Pusey Jones litigation in Delaware was fina

by settlement and the Government received 500 0

The case of Bennett et al against the Fleet Corpora

more than 300 0 was decided in favor of the Gove

suit was brought by Bennett and other employees of 

Shipyards Inc for a share of profits alleged to hav

under a contract between the Newburgh Shipyards I

Fleet Corporation for the construction of vessels and 

ing before a master and long arguments before the co

figures and involved questions of law

The case of Maurice Eichberg trading as National T

finally settled for 25000 after nearly eig tyears of lit

suit involved 120 97 80 with interest and at one tim

had secured a verdict for 127 484 23against the Flee

The outstanding cases which have been handled by 

during the fiscal year include the following

United States v Skinner Edd pending in the 

District Court for the Western District of Washing

Division in which the Government claims approxim

432 08 arising out of wartime construction activit

have been in progress for some time before an auditor 

the court and on many important points the Governme

favorable decisions

Western Union Telegraph Co v United States Sh

Emergency Fleet CorporationIn the suit of the W

Telegraph Co to collect the difference between Govern

mercial rates on messages sent by the Fleet Corporatio

Court of the United States granted a petition for a wr

and briefs are being prepared and the case will be argu

future

Bethlehem litigation A large amount of time has 

in preparing the socalled Bethlehem litigation for tr

five cases of Bethlehem companies against the Flee

four pending in the United States District Court for th

trict of Pennsylvania and one in the United States 

for the Southern District of New York The Govern

a bill in equity against various Bethlehem companies t

sums of money and has also filed a counterclaim in t

Practically all of the figures which are involved on 

theories of Bethlehem and the Government have fina
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

Bated from the necessity of proof at the trial by an agree

parties by stipulation This will materially shorten the t

and save much of the expense of witnesses etc It is hop

efforts made during the year will result in similar agree

the documentary evidence thus further reducing the time 

of trial

This division also has charge of the bankruptcy receiv

insolvency cases in which the Government is interested 

or as a creditor

The handling of claims during the fiscal year has been 

the disallowance discontinuance or transfer to litigation 

There were filed during the year eight new claims totaling 

There were disposed of by disallowance elimination li

settlement 23 claims amounting to 241863 01which 

for 48133

There has been no marked activity so far as the claim 

concerned During the past fiscal year there were onl

claims presented one by the Continental Shipbuilding C

than 271 000 and the other by the Knoxville Iron Co fo

82000 Both of these were old construction matters

Codification of Navigation Laws Division

The work of this division has been to subject the propo

navigation laws to a complete and thorough review for 

of eliminating any errors which might have crept int

during the two years of its preparation While subject

to this review all of the different parts were subm

branches of the Goy ernment interested in the operation a

of the navigation laws and to admiralty lawyers shippe

ciations The proposed codification was then printed by 

ment Printing Office early in October 1926 in a vol

pages The printed copies of the proposed codification we

tributed for comment and criticism to approximately 170

associations and individuals including Members of Cong

prominent lawyers associations steamship owners ma

underwriters shipbuilders etc

In December 1926 a commitee of 24 representative 

lawyers all members of the Maritime Law Association o

late Charles I Hough judge of the United States Circ

Appeals for the Second Circuit was president made 

report on the work of the codification after an intensi

the different chapters of the proposed code and after 

ferences held with the members of this division

The Shipping Board formally approved the code and re

its presentation to Congress It was introduced and 

C9197276
58 ELECESTII ANNUAL rEPORT UNITED STATES SHIP

unanimously reported for passage in a report recomm

pass without amendment It was not acted on at the la

it is expected that it will be reintmdnced in the comi

enactment

The work of this recision and proposed codification 

extensive correspondence throughout the country and 

ferences here and in other cities with representatives 

interests concerned as well as with the representativ

bureaus and offices of the Government whose wort inc

ministration and enforcement of these laws

The division has also assembled from all sources o

known to the Shipping Board every suggestion for pro

and amendments in the present navigation and shippin

attempt to bring these laws up to date and into co

present shipping conditions Jlore than 1200 suggestio

received Of this number some 250 have been selecte

consideration and study after being compiled in logi

mimeographed they were in June 1927 mailed to a

800 representatives of the shipping world who presum

interest in the work These correspondents have been 

comment and advise as to individual suggestions for ch

Every attempt has been made to give attention t

needs of the different sections of the United States in o

justice might be done to each section without discrimin

other sections

Admiralty Division

During the fiscal year ended June 30 1927 the adm

disposed of 444 cases involving approximately 130 

hundred and eighty of these cases in which the amoun

approximately 7500 were in favor of the boa

claims there was collected over 150 00 There w

against the board involving about 7800 0 in d

which the board paid about1050 The board c

salvage cases a total of 202 96 80 and paid in 19 

The division received daring the year a total of 2

involving approximately 6400 0 These consisted 

involving about 850 00 in favor of the board and 

volving about500 0 against the board In add

York the division has taken over 132 United States P

Indemnity Agency cases involving over 3000 

include personal injury cases which are not handled 

fn addition the division handled 329 admiralty cases 

partments of the Government including the War Nav
y

hp West Cape caseDemon L Phillips v Fleet Corpora

tion and Baltimore Steamship CompanyThe circuit court of ap

peal hed held that a seaman had one cause of action for injuries due

to nelionce of a fellow servant and another for injuries clue to

uncaworth dear The Supreme Court held that there was but one

cau eof action for injuries received whether they were caused by

unseaicorthv rear or by negligence of fellow servants

3 fbe hasta lcaseThe t11ount Shasta had been

delivered to the lount Shasta Steamship Co under a charter sales

agreemat bare boat charter with option to purchase The Mount

Shasta Strumhip Co entered into a contract of affreightment or the

voyage charter with Palmer Parker Co of Boston The charter

sales agreement pave the Fleet Corporation a lien on the subficights

for the charter hire due The freight monies were libeled for the lien

Of the unpaid charter hire The case was dimissed by the district

court for lack of jurisdiction This judgluent was reversed by the

Supreme Cuit on the ground that the chose in action that is the

obligation of Palmer C Parker to pay the freight money could be

libeled in rem

4 salvage caseAhile the Leviathan was at Pier

4 Hoboken in Autust 1931 a fire broke out on Pier 5 Merritt

Chapman fought the fire on Pier 5 but did not throw any water

on the Leviathan or render her any direct service They claimed

that by fighting the fire on Pier 5 they indirectly benefitted the

Leviathan and for that benefit claimed salvage compensation This

was denied by the Supreme Court which held that whatever aid

or benefit resulted to the Leviathan was incidental and indirect and

could not be made the ba i for salvage compensation
g 

opinions prepared and other documents assigned by this division

1 Instruments drafted

a Contracts and leases 190

D Performances and other bonds 103

c tor gn r 43

d 3disactions of mortgages and releases of sureties on bonds 40

C Proposals anal notices of terms of contracts to bidders 13

2 Opinions prepared 120

3 Contracts releases insurance policies and bonds examined tpproved or

diapproved or nod ified TIC

There have been many claims against surety bonds under certain

bonds arising out of wartime construction and poet and present

operating activities Considerable progress has been ma e in this

direction with the result that during the fiscal year there has been

collected approximately 120 00 from bonding companies

The clerical forces of the Bureau of Law are engaged in the usual

detailed functions of a large law office They are charged with the

custody of the original contracts agreements etc maintenance of the

files docketing of cases preparation of reports and other data

requisitioning of supplies and maintenance of a chronological record

system of all cases of the Bureau of Law

The Bureau of Law desires to eipress its appreciation for the

cooperation and consideration received from the Attorney General

and the Department of Justice in all of the many problems in which

the Shipping Board and Merchant Fleet Corporation are interested

BUREAU OF FINANCE

The Bureau of Finance supervises all financial activities of the

Shipping Board including the withdrawal of funds from appro

priations for the expenses of both the Shipping Board and the

Fleet Corporation the disbursement of funds on account of the
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

salaries and expenses of the Shipping Board made by the 

officer of the board the operations of the finance comps

marineinsurance departments of the Fleet Corporation 

devolve respectively the administration of the financial 

and marine insurance activities of the Shipping Boa

Fleet Corporation and is responsible for examinatio

reporting to the Shipping Board on all financial matters 

before the board for consideration

The Bureau of Finance investigates carefully all recom

to the Shipping Board for the disposition of accounts 

both active and inactive Under the supervision of the p

missioner there has been handled a total of 1405 inact

receivable aggregating an amount of 178 3 043 70 

113 accounts totalingS12063 80have been closed l

at the end of the fiscal year 1927 293 accounts totaling 915

During the past fiscal year the disbursing officer o

handled receipts totaling 313 529 35on account of sala

penses of the Shipping Board and receipts totaling 180

in connection with the construction loan fund and handl

ments on account of salaries and expenses of the Ship

totaling 319931 and in connection with loans mad

construction loan fund the sum of3162 000 was disburs

plete report of the financial activities of the Shipping Bo

Fleet Corporation will be found elsewhere in this annua

The Bureau of Finance in conjunction with the Bure

struction administers the construction loan fund esta

maintained under the merchant marine act of 1920 and 

the Sixtyninth Congress approved March 4 1927 The 

Finance passes upon the financial responsibility of ap

loans made from this fund the terms of proposed loa

security to be given for the payment thereof

All requests made for the modification of the terms 

and obligations of purchasers arising out of the sale o

miscellaneous property of the board are investigated by 

of Finance and recommendations made to the board the

BUREAU OR RESEARCH

The Bureau of Research during the past fiscal year c

customary compilation and tabulation of cargo and ves

covering our foreign and intercoastal commerce Durin

over 60000 entrances and clearances by approximately 

were handled

To the wort of the planning committee the bureau 

exhaustive studies on costs differentials in construction an

of ships under the American flag in addition to separate 
62 ELEVENTH ANNUAL PEroBT UNITED STATES SIIIPP

all basic commodities the history source distribution 

tion thereof

The Shipping Board exhibit at the Sesquicentenni

at Philadelphia was among the Government exhibits aw

honors The bureau maintained a staff with the exhibi

sition from the opening to the closing date It is e

contact was made through this means with 500 0 pers

Further bureau activities during the year were carrie

membership in various committees In this connectio

was represented on the packing and stowage committe

partrnent of Commerce on a committee on statistics un

Coordinator on two of the committees charged with th

of material for the delegates of the International Ec

ference at Geneva and on a number of lesser committee

During the fiscal year the bureau compiled 63 regu

reports distributing about 30000 copies Requests for 

pilations required the preparation of 181 additional re

formulation of the records from which these reports w

the contents of 75000 cargo reports were recorded on 20 

SECRETARY

Work performed by the Secretary during the past fis

be summarized briefly as follows

1 Recorded all minutes of meetings of the Shippi

2 Prepared and presented to the board by form

otherwise all cases which required the board sattentio

3 Acted as custodian of the files records and seall 

I Issued orders under section 9 of the shipping 

amended

5 Prepared for the board or commsttee thereof 

arose under section 10 subsection O a merchant mar

conducted investigations in cnnnection therewith and 

orders thereunder

6 Prepared as Budget officer for the consideration 

and transmittal to Congress estimates for appropriati

by the board

7 Examined and tool administrative action on vouc

salaries and expenses of employees of the Shipping Bo

tion of the chairman

8 Maintained jurisdiction over the service divisions 

such as mails duplicating library files chief clerk s 

sonnel division etc and general office management

9 Supervised communications telegrams cables e

10 Under direction of chairman exercised supervi

personnel of the Shipping Board
ELEVENTH ANNUAL REPOI T UNITED STATES sIIIPPING 

11 Assisted special committees of the bond in pre

and holding hearings in connection with litigation a

board

12 Compiled and distributed weekly report

During the past year through the introduction of imp

practices and close supervision of inatters coming under 

tion of the Secretary greater efficiency has been obtained 

out administrative routine duties

PART II

UNITED STATES SHIPPING BOARD

MERCHANT FLEET CORPORATION

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MERCHANT FLEET CORPORATION

By an act approved February 11 1927 Congress ch

name of the United States Shipping Board Emergency 

poration to United States Shipping Board Derchant F

poration

ORGANIZATION

Following the practice prevailing in private business 

chant Fleet Corporation has continued during the past y

organized under the administrative authority of a single ch

tive who reports to the Shipping Board as to a board of 

Late in the fiscal year there was however an important 

ment of the organization falling under the president b

recognition of what might be called the dual aspect of the 

tion s administration

The responsibilities of the Merchant Fleet Corporatio

comparable with those of any other of the world ssteam

porations Many of its problems are quite beyond the 

ordinary steamship operation They include various prac

ness problems similar to ones which might arise in conne

any other unusually large governmental or business institu

Merchant Fleet Corporation for instance runs a great m

surance business to insure its own vessels and a protectio

denmity insurance company to cover claims for personal 

damage to cargo It maintains a large ship sales departm

department dealing with the larger problems of liquidatio

many lines of vessels for which it is responsible it operat

one the United States Lines by contract with 19 different 

companies whose management it must carefully superv

legal accounting and financial problems of the Merchant 

poration are consequently much larger and very different f

of any other steamship corporation The corporation mus

ate the active fleet of vessels as to serve the needs of Amer

merce and to carry out the policies of the Shipping Boa

is responsible to Congress for that part of the American 

marine maintained by the Government

Itn form the shipping Board governs the Merchant Fleet Corporation thro

of trustees made up of seven oeeis of the corporation
63 ELFVENTII ANNUAL REl ORT UNITED STATES SHIPPIN

Following the established practice of large business c

comparable with the Merchant Fleet Corporation it w

in the spring of 1937 to separate tine immediate control o

financial personnel and general administrative activities 

pertaining to technical ship operation Effective Alay 1 th

tion of the Merchant Fleet Corporation was divided into 

groups one to be placed under a vice president for adm

and the other under a rice president for operations 

vice president for administration there were placed the 

partment the general comptroller sdepartment tine ins

partment the secretary soffice and the divisions of pers

sales and statistics these last three divisions falling tec

what is known as the executive department The new o

provided for no legal department because of a special a

to be noted in the next paragraph Under the rice pr

operations there were concentrated all those departme

to do with physical operation These included the dep

traffic operations and supply the operations departmen

nlafnten mcand repair stevedoring and terminals and th

and care of both the active and reserve fleets

With but few exceptions the departmental and divisio

ization of the Merchant Fleet Corporation at the end of the 

was similar to that at the beginning The more impor

changes which occurred were as follows The legal dep

the corporation was separated from the corporation and p

the Shipping Board The legal work of the corporati

handled by persons attached to the staff of the Shipp

bureau of Law but assigned to Merchant Fleet Corpor

The department of ship sales later known as the fleet con

ment was discontinued and duties and responsibiliti

department including the care of the reserve fleet and o

cal property were transferred to the operations depart

responsibilities connected with ship sales have rema

in a division of ship sales which now reports directly 

president for adminstration Tire purchase and supply 

the operations department was reorganized and a sepa

department created This change in the supply organ

resulted in establishing a more complete and centraliz

over all Merchant Fleet Corporation expenditures for su

preventing unwarranted outlays facilitating the obtaini

imum prices through collective buying and assuring u

good quality of food material and equipment

In addition to the central office force located mainly in A

the Merchant Fleet Corporation has Email field organizat
ELEVEST11 ANNUAL REPOI T UNITED STATES SHIPPING BO

of 12 districts Certain of the home office departments 

representatives in some of the field districts All the emp

a district are adminietrativcly under the district directur 

self is directly respon ible to the president

Pith respect to the Iuropean district it may be noted 

October 1 12G the continental subdistrict was divided 

northern district with headquarters at Ilamburg and a ce

tinentnl district iu ith headquarters at Antwerp On Fe

1927 a district office was established at Barcelona to 

Aled terrauean Portu and Spanish Atlantic ports and 

I 1927 at Copcnhar eto supervise the Baltic and Sca

countries The Leaclquarters of the European division 

mained at London

At the clove of the fcal year the United States Lines o

semi independent position in the organization under the 

thority and supervision of the president aided by tiic two 

dents Only in the case of the purchase of supplies was 

responsibility vested in a home oliice department The 

of the United States Shipping Board and Merchant Fleet 

tion is also treasurer of the United States Lines while th

comptroller of the Merchant Blest Corporation has gener

sion over the accountinIg activities of the United States Lin

The organization chart shows the 23 lines of vessels o

the United States Lines which on June 0 1927 were bein

by managing operators subject to the supervision of the 

Fleet Corporation The Merchant Fleet Corporation exe

trol of all expenditures incurred and oversight over th

rendered by these lines On June 0 1927 the Merch

Corporation was responsible directly or indirectly for the 

of 307 vessels unakinl it by a considerable margin the ws 

important shipping corporation

The officers of the corporation during the course of the 

have been as follows

President E E Crowley succeeded July 3 1926 by A 

Vice presidents During the first part of the year G K 

succeeded July 19 1926 by J Harry Philbin who resigne

April 20 1937 beginnimg flay 1 1927 J Caldwell Je

president for administration and E A Belly vice pre

operations

Treasurer E II Schmidt

General comptroller D S Morrison

Secretary R H Morrill succeeded July 26 1926 by Sam

acre

General counsel Chauncey G Parker
70 ELEVENTH ANNUAL REPORT UNITED STATES SHIPPIN

Director of operations Beginning July 16 1926 J 

succeeded April 19 1927 by E A Belly Office not 

succession of E A Belly to vice presidency llay 1 1927

Director of traffic F G Frieser

Director of supplies H Y Saint

Director of insurance B K Ogden

Trustees E E Crowley July 18 1926 G K Nichols 

1926 Chauncey G Parker July 127 1926 J Harry Phi

1926April 20 1927 E H Schmidt and D S Morrison J

June 30 1927 A C Dalton July 8 1926 June 30 1927 J 

July 27 19213 April 21 1927 F G Frieser and H Y 

28 1926June 30 1927 E A Belly April 21June 3

Caldwell Jenkins April 27June 30 1927

rztsUJIt OF TIIE YEAR SMAIN ACCOMPLISHME

Ship Sales

As in past years the Merchant Fleet Corporation throu

saves division has continued to negotiate the sale of tonn

manner prescribed by the Shipping Board pursuant to th

marine act

Sales for the fiscal year ended June 30 1927 totale

vessels of 203 49 dead weight tons 18 tankers of 10

weight tons and 1 harbor tug A further reduction in t

accomplished by the transfer of one cargo ship of 4261 d

tons and a harbor tug to other departments Two ca

with a total dead weight of 18231 tons were lost at sea 

vessel the Inzerican Stan 7564 dead weight tons on whic

held a preferred mortgage and which had been in litigati

eral years was purchased at judicial sale for 86000 

of the fiscal year 1927 the Shipping Board fleet consi

vessels of 6482 868 dead weight tons and 70 auxiliary 

an appraised value of 128 060 977 The auxiliary craf

lighters launches motor sailers and barges used in conn

the fleet

No trade routes were sold during the year but two c

were sold to augment the service on routes previously sol

A flurry in the oil market in the fall of 1926 created a 

tankers and all of this type which could be released wit

capping the operations of the fleet were with one except

During the year in order to make vessels in layu

repairs as attractive to prospective buyers as those in op

Shipping Board modified its terms to provide for a 10 p

payment on vessels sold out of layup as against the sta

rTbis figure dues not Include the Aoeciuszko a steel cargo ship of 737

custody by the reserve fleet
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING BO

of 25 per cent cash The modification did not extend to v

a special type and class such as the lakebuilt ships

A schedule showing the various classes of tonnage sold 

conditions under which the sales were made during the fisca

I ubmitted as Table I of the appendix of this report

Extent of vessel Operation

Notwithstanding the active efforts made by the corpor

several years past to sell its vessels including the naming o

nominal prices where the purchasers will agree to take 

operate one of the Shipping Board slinesprivate shipping 

have not as yet been willing to undertake the purchase and 

of more than a few of the foreign services The main resp

of the Merchant Fleet Corporation during the past year a

the years immediately preceding has continued therefore 

maintenance of those foreign trade services which exper

shown to be requisite for the development of American c

but which private American interests have not as yet supp

The number of lines maintained by the corporation has d

past year undergone no change except that in further con

of the policy of consolidation lines have in two instances 

solidated and in one other instance been brought under 

operator The established lines have rendered a materia

service and financially have shown better results than at 

since 1921 Whereas on June 30 1926 the Merchant fleet 

tion had in its active service 236 cargo or passenger vessels 

30 1927 the number ivas 271 As compared to 1025 voyag

natimg in the fiscal year 192Gnot counting voyages on lin

have since been soldthere were in the fiscal year 1927 128

nations As against 7691 015 cargo tons carried by these 

1926 there were carried in 1927 9841 476 cargo tons No

allowance as above for lines sold the number of terminatio

found to have increased from 123 in 1926 to 1290 in 192

number of cargo tons carried from 8660 31 in 1926 to 97

1927

Special Grain and Cotton Movement

From the point of view of services rendered the most ou

achievement of the fiscal year just closed was the emer

rendered to American shippers during the British coal str

eign ships which under ordinary circumstances would hav

American grain and cotton to Europe were drawn into the 

in such numbers that there was not a sufficient supply of 

transport American crops In this emergency the Merch

Corporation broke out of layup nearly 100 vessels put them 

a These figures do not include tankers tugs or spot vessels In the hands o
72 ELEVENTH ANNUAL nEPORT UNITED STATES SHIPPI

ating condition at an expense of more than two and a 

dollars and thus not only prevented a serious impairme

ica s foreign markets but also prevented the freight ra

commodities from undergoing an inordinate increase E

to the benefits to American grain and cotton farmers in 

saved have commonly run into hundreds of millions of d

gratifying to report that this action found universal co

throughout the country

Reduction in Operating Costs

Notwithstanding an increase over the preceding fisca

per cent in total voyages terminated and 22 per cent in 

carried25 and 28 per cent respectively if one includes 

lines which have not been soldand notwithstanding 

expenses incurred in rendering the emergency service dur

strike the net cost to the Government of operating the fl

reduced In previous annual reports it has been record

operating losses of what is now the Merchant Fleet Corp

in 1924 41000 In 1925 these were reduced to 30

in 1926 to some 19000 In the years named the 

losses was in part due to savings incident to the sale o

and cargo lines In 1927 as already noted there was 

increase rather than a decrease in the number of ves

operated But notwithstanding this greater service ope

were further reduced to less than 16000

Operating Profit of United States Lines

It is very gratifying to report in this connection tha

Mates Lines now show for the first time in their histor

ing profit instead of an operating loss The United 

include the Leviathan George Wa ahington Pepubli

Harding and President Roosevelt with the Anielica 

not in commission and are the only vessels operated dir

Merchant Fleet Corporation rather than through man

ators They are the only fast passenger vessels ow

United States Shipping Board Ileretofore this line h

at a loss which in 1926 was 962 000 In 1927 this was 

a profit of 371 000 a gain over the preceding year o

The 1927 profit would probable have been larger h

rlanerica been out of coramissi mthe entire year pendi

pletion of reconditioning made necessary by a fire Ex

America from the 1926 as well as the 1927 figures the 

balance of the vessels of the United States Lines in 1926 w

The loss of the United States Lines during 1696 is Riven in the Tenth 

as different from and larger than the above figure because of the Incl

charges which for purposes of this comparison should be excluded
lLFV1 ST1 ANNUAL RI 1U1T UNITI1D STATES SIIIDPISG n

1

and the gain of 1927 over 1926 in operating results for ident

was LO1G 0S5 The above fi take account of all 

aml repair costs cots of betterment and lay up all ovei

cf the united States Lines and a proper share of the adm

expense of the Merchant Elect Ccrp ration but do not i

terest or depreciation

Cost of Maintaining Cargo Services

Oa fiei htrs and combined pnssentrer and cargo vessels 

notwithstanding 15 per cent more voyancs by vessels of tho

were iedured from ti19 16G 000 to S182 000 a gain of

Included in the 1927 loss moreover was more than 250 

extra expen c incurred in the breaking out from layup of 

10 icsscls ittilized in the special grain and cotton moveme

vessr s arc now held at a sales price 1900 0 greater th

the repairs incidental to breaking out were made No ded

however Leen made for this improvement in vessel condi

urin 1937 operating costs The cost to the Government 

ton carried by cargo ships liar been reduced from 312 

the fiscal year 1936 to SIAS per ton in the fiscal year 192

In 1926 there was an operating profit on tankers an

SJx000 In 1937 this was increased to 509 00 a gain o

Miscellaneous income derived largely from the operatio

bases interest and fuel sales inereaxd from 599 000 

12S6 000 in 1927 a gain of 3S7

UNDERLYING CAUSES OR REDUCED COSTS

Improvement in World Shipping Situation

A part of the more favorable financial showing deta

preceding paragraphs was clue to a somewhat more favor

shipping situation Shortly after the war the reentry into 

services of vessels which had been in military service or 

im simultaneously with the completion and release of the 

warbuilt American fleetthese events combined with 

slump in international shipments caused freight rates 

low that no important beet of vessels operating in the for

whether publicly or privately owned American or foreig

operated at a profit American vessels in the foreign 

their comparatively high costs and lack of established p

evitably suffered large losses These unfavorable condi

not be quickly improved

During the fiscal year just closed there was however 

the better The beginning of the year was marked by 

crease in the demand for ocean space and a shortage of oce

which because acute at times Rates particularly in the 

G99727C
74 ELEVENTH ANNUAL REPOP T UNITED STATES SHIPPIN

market rose rapidly the situation in a measure being 

of conditions as they existed during the World War T

primarily in the British coal strike which began in the sp

and did not terminate until late that year From a level 

mately 3 per ton in July the rate on coal from North 

United Pingdom ports rose to as high as 9 and 10 

November The world s markets became largely depe

America for their coal supply and tramp tonnage the 

oecame concentrated to an unusual degree in the North A

Other factors contributed to the demand for ocean space 

among these were the economic revival of the European 

nations particularly Germany and America slarge whe

ton crops for which there was from the very beginning 

demand Cotton particularly was in large supply the 

crop reaching a total of approximately 15000 bales 

largest on record

The Shipping Board not having to any extent entered 

market and not being in the business of operating tram

participate directly in the larger profits occasioned b

strike Having in view the welfare of American shippe

to stabilize and keep moderate the rates charged for it

other line services rather than to reap a special profit 

less the general shipping situation was conducive to the 

plete filling of the Merchant Fleet Corporation sregular 

and there was some tendency toward higher rates

Increased Patronage of American Flag Ships

Each year the lines of the Merchant Fleet Corporation 

task made somewhat easier by the better established pos

American flag ships are now coming to hold Built as a w

shippers could not but at first regard the Shipping Board 

an experiment and the service which they rendered as po

porary and at best uncertain For a number of years now 

have however been operated steadily and dependably eit

Merchant Fleet Corporation or by private owners to whom 

them have been sold While the ownership of the lines is 

being changed the lines themselves are now sufficiently 

permanent to command the respect and win the patronag

pers at home and abroad The American public in pa

learning to have faith in and patronize its own shipping 

been particularly noticeable during the past year in the 

United States Lines which have gained rapidly in popu

is a major reason for the fine gain which has been mad

applies also in reater or less degree to almost all the lin
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

Improvements in Efficiency Traceable to Operating Policies Es

Past Years

Much of the gain of the last year has been the fruiti

labors of successive administrations of the United States 

Board and United States Shipping Board Merchant Flee

tion As soon as it became apparent that in the absence 

aids to shipping the sale of Shipping Board vessels to priva

mu t necessarily go forward slowly the Merchant Fleet 

tion proceeded to consolidate its many separate and some

petitive services into some 20 or 25 relatively strong 

rounded out operating units This process of consolid

been practically completed previous to the beginnin of 

year just closed But the gains from the policy 

nccumtdating

In 1924 the agreement by which private shipping compa

ate as agents all but one of the Shipping Board slines was 

modified so as to stimulate the operators to obtain cargo

became knou as the operatingg agreement 1924 has 

affective in building up cargoes particularly on outw

vessels

In the case of the United States Lines another importan

profit has been the conversion of the steamships Pr iflent 

and Iresident Roosevelt to cabin type This was effecte

ceding year but could only show in the increased revenue

fiscal year just closed

Operating Policies Emphasized During 1927

The chief objective of the Merchant Fleet Corporation d

patyear and at the present time has been and is to effect y

reductions in cost and improvements in operating eflicienc

as to increase the volume of cargo and passenger traffi

The president of the corporation has made a very close 

study not only of the expenses of the corporation prop

the voyage reports received from managing operators 

the other officers and employees of the corporation lie h

to eradicate every form of waste or misdirected effort 

snnal attention and the constant pressure of the home 

o4iccs upon operators and ships officers has already re

some signal operating economics and should in the montli

be yet more fruitful

PRf NCIPAL EVENTS OF THE YEAR IN OPERATIONS AND 

Fuel Conservation

The largest single item of expense in vessel operation is 

cost of which averages about 25 per cent of the total voyage 
76 ELEVEN TII ANNUAL REPORT UNITED STATES SHIPPI

The fuel conservation program of the corporation has be

at length in the annual report for the fiscal year end

1925 As in 1925 and 1926 for each of the two six mo

constitutim the last fiscal year there were issued hono

taining the names of those vessels showim the best rec

economy The inclusion of a vessel on the honor roll 

chief engineer and master to a bonus of 50 each The

been issued honorable mention rolls containing the nam

vessels which fell only slightly short of those included 

list For the first half of the fiscal year and the pr

months a comparison has been completed of the fuel p

records of the 299 vessels for which complete records we

This showed not only a continuation of the excellent s

in previous years but also indicated a further saving 

sumption of 233 Wand coal consumption of o313 

233 59 This was the rain made in six months

Centralized Purchasing

The cost of fuel is affected not only by the amount 

the price at which it is purchased The following tabul

the quantity and cost of bunker fuel oil purchased tind

and on the market by ports for the fiscal year ended Ju

with a comparison of contract prices as of June 30 192

30 1927

C 

Port Nmher

deliveries Q entity Cos

Ju

nanrsnc

neaze r

Total 1 606 i 9 r3 203 14034 8115 IN I Best

I

58 lot 42 190 SG5 77 

NewUnited Yerk States Linea 149 24Q13P0 103 I

836 31 

m i

135 1 7

2 e147 3

Philadelphia 1038 51xD 5 x2 Hi RQltlmnre i

01 91799 459 

Norp S tun 4e M2 0 070 U1 774 45 

Sa

x 2N SO M4 132 

aaa Savannah 14 007 nfF2 n4 

Juck511mvilla 22 fi 11R 190294 

gnuip1 5 2R 21 301x7 4 

New Ogleens 3f 0 1 6 33 582 247510 

Palnlc hlr 49 301111 h93 4n igt

09 

7553111 7 2534 63 711 

Heautnnnt

ne

30 161 327 24741 74 

Ytnun 14 2 213 308452 

San NranclscU 15 23x 660 213 32 11 

SM Peirn 1211 9li cp3 Nf44 yi 

11aCCaa1 Q115 US7 n1y 9111 2372 50 

rnpQnmarket

11 SQ C rane Ytlad1 the fAl NInq ta111e Or iiddlti aal dQl1VQ1 Ie5 at iLI 11111k
ELEVENTH ANNUAL EEPOItT UMIRD STATES SHIPPING BO

Cou

Port

runelnu

Cnilcd

Lomthan

Fin dem

uul

Crntinernl Ports

openh0w o

A

1 is Palm

ien Almeria

1FL k1 in0GL

Port

Ti

Fnu111 1 perica

adcn

TIbrell ueous

Grand Mal

raa Quantity Cost

294 573 251 612 2s

June 

192

15ar IS Per 

110 131 375 575 019 77

roaeua

j Per 

Total

C 

8

L

472 20 115 360 61 C

2 

Per 

o 191 343 434432 215 

14757 75

P 

ristnhal 1s

s 

87679 76

26 82081 200 647 43 6

436 901

C

12 46 246 IWr9v 76 5

4 4 610 10 C

19 T s03 741930 6

19 10937 272 00 6

1s 90406 199 085 47 1

0

Grand total

P r 

40 60260 183 572 03 t

1t G0103 8399271 3

45 41593 125 IG 1 21 

1948 111 954 576 1511 95 45

1 0nnmrket

The following tabulation shows the quantity and issue 

bunker fuel oil issued from owned or leased stora statio

the fiscal year ended June 30 1927 with a comparison of is

as of June 30 1926 and June 30 1927

Issu

Ncmber

Sto lion d iCt Quantity Volce

eries Ju

1 

i

3

Total 38 1Pe990 123 2861 11 03 

CoCy TAnnO 147 626 35 1287880 16

V1ehPe Iml 62 3a6 1 000 273 20 

Portland 56 294 573 251 612 2s 

Seattle 59 280 96 311 406 75 

Total

roaeua

317 139 450 160589

nalhna 50 1 193 871 257 912 

i 7521

T o liaelmllI14757 75 

ristnhal 1s 55655 87679 76 

II unlulu 0 436 901 52919 43 

Manila lit 344 6 520 061 77 

Ponta ne13ala 6 10633 2331260 

nt TLOu es 28 50815 91467 36 

Sokohv a 17 3 64426 5G 

Grand total 690 i 3129 573 466 7392 I
78 ELEVENTH ANNUAL REPORT UNITED STATES SHIPPI

The following tabulation shows the quantity and cos

coal purchased under contracts and on the market by p

fiscal year ended June 30 1927 with a comparison of co

as of June 30 1926 and June 30 1927

Number

Port deliv Quantity Cost

ones

J

DOMESTIC TORE 

Total Ri 224 701 13394 91

NewUnited York States Lines 13 31 2I1 215 523 1 

Other 112 91690 

Philadelphia 8 614 266749 

Baltin re 27 fi 803 36617 53 

Norly 101 825x 459 278 4 

Charleston 6 11A 11324 4 

Savannah 3 316 2407 00 

Jacksonville 1 00 Lu0 00 

Dliscellavecot 6 1373 8961 07 

FVREIGN

Total 82 77670 395 506 62

Bremen 10 33 528 218 523 97 

Glasgow 9 899 387 

M see llaveous 63 351 138 250 07 

Grand total 359 302 1 734 856 53

1 Open market I T I B 1 F O B

Altogether the Merchant Fleet Corporation purchased 

fiscal year ended June 30 1927 1409451 barrels of fuel 

of21978 685 37and 30271 tons of coal at a cost of785

a grand total for all fuel of23713 541 90 The fueloil 

year averaged 1559 a barrel as against1599 a barrel f

year ended June 30 1926 The cost of coal averaged 573

compared with 537 a ton for the year ended June 30 19

creased cost per ton of bunker coal in 1927 over 1926 was 

labor conditions in the United Kingdom The decrease in 

cost per barrel of fuel oil in 1927 was not due to general 

ditions for the price of fuel oil unlike that of crude o

up but was largely due to an increased quantity of fuel 

through the Merchant Fleet Corporation sbunkering sta

There was during the year no material change in the 

purchasing bunker fuel As in previous years all p

bunker fuel have been centrally made

There has however been a very important change in 

of purchasing other supplies and equipment During the 

of the fiscal year the system of centralized purchasing w

so as to include so far as possible the purchase of all th

which heretofore have been purchased by managing oper

the purchase of supplies for the United States Lines was 
ELEVENTH ANNUAL REPORT UNITED STATES SIIIPPIITG 

from the jurisdiction of the Lines to that of the supply 

of the Merchant Fleet Corporation proper During the 

year practically all commodities will be purchased by 

department

Purchases already made on contracts negotiated by the 

under the new plan of centralized procurement for lubr

paints packing manila rope and fire brick bad amou

close of the fiscal year to 1400 0 on which there 

saving of approximately 550 00 compared with the c

commodities at current wholesale market prices The 

of purchases made by Fleet Corporation offices exclusive 

fuel and office supplies and equipment was approximately

of which 2000 was for the account of the United S

In addition to the monetary savings the new plan of 

purchasing has assured commodities of uniform and go

The extension of the centralized purchasing to cover a

ties required for Shipping Board vessels has included a

things the extension of the inspection of subsistence item

tors of the various bureaus of the United States Dep

Agriculture This inspection together with the specifica

which these items are purchased assures passengers 

crews of vessels the best quality at reasonable prices

A large number of materials specifications have been 

the materials section of the maintenance and repair div

operations department to bring them in accordance w

practice and 10 new specifications have been issued Da

collected for specifications for various other classes of 

be purchased by the supply department such as deck 

stores cleaning materials galley gear etc The necessi

reports of analysis led to the reopening of the laboratory 

this section and a large volume of work was handled 

operations expeditiously and at low cast

The Hoboken warehouse where storks of material and 

are largely concentrated for distribution to all the dist

United States and at times to foreign districts was 

during the year so as to place it in the best condition 

and the more efficient receipt and shipment of stock

The Merchant Fleet Corporation has followed a policy 

ing and reducing the stocks of materials on hand at va

houses by the sale of all surplus obsolete and scrap s

equipment This policy resulted in sales during the year 

mately 230 00 in which amount is included materials 

to other departments at a value of 55000 However 

hand at the end of the year showed an increase due to 

stocking up of propulsion equipment parts and pass
80 ELEVENTH ANNUAL REPORT UNITED STATES SHIPP

supplies and stripping of vessels which had been placed 

service

Selection of Ports for Bunkering

Important economies have been effected during t

through a more careful study of the relative advantages 

at various ports It was found that in too many cases f

purchased abroad when it could have been obtained m

cally and often more conveniently at home Other cas

where very lowpaying cargo was carried at the sac

the ecst of replenishment of the fuel abroad being gre

revenue derived from the cargo carried in its stead

At present in advance of each voyage a tentative bu

is submitted by the managing operator covering the p

age Each schedule is then carefully examined and ch

Department of Operations of the Fleet Corporation be

mencement of the voyage and changes ordered where 

the interest of economy or expediency Again upon th

of the voyage the performance of the vessel is review

pared with the proposed bunker schedule Explanations 

in cases where unnecessary departures have been ma

proposed schedule

Food Control

In September 1926 the United States Lines insta

control system to reduce loss and waste This con

reduction in the quantity and quality of food actually 

passengers but had for its primary object a reductio

due to spoilage from overstocking and preparation of 

ties With the food requirements per head per day wo

knowledge as to the number of persons on board the 

chefs are now enabled to determine and check the neces

of raw food to be prepared with reasonable accuracy 

effected by this system have amounted to many thousan

Notwithstanding this reduction in cost the food service 

more commendation and less criticism than at any t

this period

With the cancellation in 1923 of the corporation sord

maximums for crew and passenger subsistence on carg

tankers it was noted that subsistence costs were incre

all reason consistent with market conditions or prope

of the crews With a view to reducing these costs t

operators were instructed in November 1926 that the 

day cost must not exceed 60 cents without a full explana

became evident from analysis of the revenue and expens

these instructions did not have the desired effect as 

the operators were still incurring subsistence expenses 
ELEVENTH ANNUAL REPOI T UNITED STATES SHIPPING B

60 cents On June 6 1927 orders were issued holding 

operators strictly to account for proper subsistence of crew

which should under no circumstances exceed 60 cents It w

ordered that the operators should be charged with any d

excess of the maximum fixed

Stevedoring Costs

Next to fuel the most important items in ship operati

are stevedoring and the wages of ship Brews For the 

1927 the Merchant Fleet Corporation sstevedoring bill 

168 000 Some progress has been made during the pa

reducing stevedoring costs particularly in European p

effective supervision of contracts has been particular

During the past year closer supervision has been establis

the European district srepresentatives and in most 

situation is now well in hand

In reducing stevedoring costs in European ports the in

of inclusive rate contracts has been an important factor 

on the five passenger and freight vessels of the American 

Line berthed at Surry Commercial there has been a sa

per cent At Liverpool there will be a saving in steve

of 10000 per annum and 5000 in the cost of terminal f

the first year 10000 for the second year and 15000 fo

year if the contract is carried out in its entirety At 

there will be an approximate annual saving of2500

All French ports except Marseilles are now operated 

clusive rate contracts this plan having been introduced p

year just closed Unfavorable conditions have made it 

to change the situation at Marseilles for the present A se

rate contract effected for Antwerp in 1924 will be surve

view to its improvement as early as possible A semi in

contract effected for Hamburg April 1 1927 has brought c

savings which will be approximately 10 per cent

An early survey is planned of conditions at Rotterda

the intention to enter into a new contract at Bremen sim

at Hamburg Negotiations are under way for further r

operation costs at Finnish and Swedish ports Steve

operating conditions in Spain and Portugal have bee

speaking very unsatisfactory New semi inclusive con

however now been effected at the following ports Algecira

Barcelona Cadiz Seville Tarragona Valencia Lisbon a

In general the savings in these ports will run from about 

50 per cent There has been no change as yet in the 

Italian ports

Experience having shown that in general materially 

doring costs can be secured where contracts are in effect 
82 ELEVENTII ANNUAL REPORT USITED STATES sIIIP

the overall system the Aferchant Fleet Corporati

ranging for bids on the stevedoring of certain lines at 

with a view to later extending the system

In the meantime some savings have been effected at 

througrh closer supervision At Boston the position 

inspector has been reestablished and with the aid of 

department savings have been efrected amounting to 

money would have been paid out with the approval 

operators and agents had it not been for the super

activities resulting in the disallowances The Norfolk 

the reduction in stevedoring costs at that port as 14026

The stevedorin labor situation has been satisfacto

ports and wage agreements have been entered ino o

basis In foreign ports a strike in Alanila of short 

settled with no appreciable difficulties attendant u

Board vessels Some reduction in the cost of cargo 

made in foreign ports because of a lowering of the in

wages to parallel a reduction in the index for the cost 

Shortening of Vessel Turn Around

The most effective single way of reducing operating 

larly those for wages and crews subsistence should b

ducing the number of days required to complete a voy

gain in this respect has been made during the year Ta

lines the average turn around for voyages ending du

year 1926 was 88 days the voyages averagrire 10857 m

the average turn around was 86 days the voyages av

miles There remains a large possibility for redaction 

this line By analysis of voyage results it has been fo

instances that losses have been largely contributed to 

port The operations department of the corporation 

this feature exhanetive study A speeding up of turn g

also make possible the performance of the same service 

number of ships

Repair and Betterment of Active Fleet

By a general order issued September 1 1926 the ma

repair division of the operating department was given j

bility with the managing operators for

1 Determining in the first instance the necessity 

2 Including all possible work in the original 

avoiding extras

3 Withholding authorization of work that shoul

performed by the crew

4 Seeing that maximum competition is obtained 

regular
ELECENT11 ANNUAL REPORT UNITED STATES SIIIPPISG 

5 Making inspections during progress of work so 

completion certificates and repair bills may be signed by 

tives of the maintenance and repair division

The total expenditures for maintenance incurred in 

with 174 voyages terminated by the active cargo fleet 

year were 3740 00 or an average of 31RC per termin

The efforts of previous years to keep alterations and b

to the absolute minimum have been continued and intensi

the sums expended for this item during the last fiscal 

been much less than in any year prior thereto For the 

nations of the active cargo fleet the total expenditure o

was 208 573 or an average of only 178 per terminatio

The above figures of course do not include the cost o

out of layup the nearly 100 vessels required for the sp

and cotton movement For a relatively brief period o

repair facilities of the shipyards were taxed to the u

general the repair yards have received much less than a 

amount of work This has quickened competition and s

lower repair costs

On Match 10 1936 the steamship America of the un

Lines was seriously damaged by it fire occurring while 

was Leine repaired at the plant of the Newport Sews Sd

S Dr v Dock Co Nelvpmt News Va This fire resu

turning nut of a greater part of the passenger spaces 

rooms of the vessel Specifications were prepared mve

conditioning of the vessel and restoration to her conditi

t1e fire Bids were opened under these specifications o

2l 1P27 and the lowest bid was submitted by the New

Shihbuildin Dry Dock Co A contract was subseq

cuted with that company dated March 9 1927 in the to

of 81912 135 providing for the completion of the vessel 

calendar clays from the date of delivery to the contracto

sel was delivered to the shipyard on Jlarch 14 1937 T

be accomplished involves clearing the vessel of fire d

replacement of a large amount of damaged steel and wo

ture and the rebuilding of the greater part of the cabin 

space and public rooms It will also be necessary to ou

with an entirely new complement of furniture linens c

ware and other furnishings

During the winter layup of the Leviathan the unused 

pantry of the former Ritz Carlton Restaurant was conv

children splayroom three firstclass passenger stateroo

capacity of three each and one first class four passeng
84 ELEVENTH ANNUAL REPORT UNITED STATES SHIP

two roomsor additional firstclass accommodations 

gers The maximum annual revenue that can be deriv

accommodations is approximately 132 000 The 

alterations was approximately 78000 The playroo

particularly popular and has been the subject of v

comment Improvements were also made in the tou

staterooms public rooms and dining saloon accomm

place the Leviathan above all other vessels in the N

service in respect to accommodations and service for 

ocean travelers

Care of Reserve Fleet

During the year there were an average of 515 ships 

less than the average for the previous year Eighty

tered layup and 275 were withdrawn making a tot

and out movements One layup point was elimina

ships at Staten Island N Y were concentrated into two 

of three and extensive regrouping was accomplished 

River fleet with a view to reducing the maintenance 

far as practicable the ships in all fleets have been g

cordance with their classification

During the past year more vessel surface was preserv

employment of a greater portion of the personnel in 

special oil preservatives for metal work reported up

These preservatives are proving most beneficial in the 

of the hull and other metal work of ships particularly 

of deferred classification and their use has made it pos

tain a larger number of the ships in good condition tha

been possible with the regular scaling and painting proce

used

Since the fall of 1026 when so many vessels were 

layup a program has been instituted whereby a num

will be held at the reserve fleets in readiness to sail on 

days notice permitting seasonal demands for ship

promptly

The Hog Island property has been generally improv

repaired and painted and unserviceable structures de

the property as a whole is being cleaned up to pre

appearance to prospective purchasers

Inspection of Vessels Sold

The preferred mortgage that has been taken back by 

Board upon the sale of a large number of vessels 

printed notice advising that the vessel is covered by a 

mortgage to the United States shall be displayed in th

and master scabin There is also it provision obligat
ELEVENTH ANNUAL REPORT UNITED STATES SIIIPPING 

gagor to maintain and preserve the vessel in as hood cond

ing order and state of repair as at the date of the execu

mortgage ordinary wear tear and depreciation excep

requirements affect about 120 vessels Inspections requ

mortgage have been made as the vessels become available 

States ports

Under an agreement dated Augu t 18 1920 199 vessels 

for the treater part of the Lake type were sold to 

Motor Co for the purpose of dismantling and scrapping 

of these vessels were turned over to the Ford Motor C

beginning of the fiscal year just ended The vessels were d

the laid up fleets in the James River New Fork and P

A number of the vessels were scrapped at the River Rou

the ford Motor Co Some of the vessels were scrapped 

folk Dry Dock Co Norfolk Va the Sun Shipbuilding C 

Co Chester Pa and the Federal Shipbuilding Co Kea

Inpect on were made daring the progress of the sc

the operations department to insure that the work was 

cordame with the terms of the contract The American 

Shipping made the necessary inspections at the River R

for the Shipping Board

Terminals

The IIoboken Terminal which is the terminus for 

States Lines except the Leviathan the Munson Stea

South American service the America France Line and 

can Diamond Lines is operated directly by the Merchan

poration through a staff of annual and lcr diem empl

annual dredging has been done by contract The termina

in good condition The bulkhead between Piers No 4 an

dammed by fire some years ago and has been weakened 

weathering Such reconstruction as was within the cap

regular employees has been effected The terminal ref

profit of approximately 400 0 during the fiscal year T

what less than the previous year srevenue partly due 

that certain reductions were made in pier rentals to con

vailing market conditions

Reconditioning wort at the Boston Philadelphia N

Charleston terminals has already been noted in the re

piers and wharves division Bureau of Operations U

Shipping Board

The Shipping Board now has two appropriated berths 

one at Greenland Basin and one at Surry Commercial D

and 9 The appropriated berth at Tilbury was given 

American At erchant Line B type vessels formerly ac
86 ELEVENTH ANNUAL EEORT UNITED STATES SLII

at Tilbury are now berthed at the Surry Commercia

The cost of the differential between Tilbury and Lo

saved and better results assured in the way of an inc

ments both eastbound and westbound The B ty

handled very satisfactorily at the No 9 Sorry Com

which is equipped Ivith portable ramps for loading 

with small cranes in rear of shed for handling cargo 

Equipment for expeditin the handling of Passengers 

has also been provided Other Shipping Board vesse

at No 5 which has been found to be very satisfacto

ships from the Gulf

At Liverpool the appropriated berths allocated to 

Board on the north side of Canada Branch No 2 

accommodate only 50 per cent of the Shipping Board 

at that port Application made to the harbor board 

tion of the adjoining berths on the south side of Ca

No 2 resulted shortl after the close of the lscal year 

tion being made and the Shippim Board lines will 

excellent position at Liverpool regarding terminal fac

Reduced Costs in the Orient

A considerable reduction in the cost of maintainin

organization of the Merchant Fleet Corporation has 

during the fiscal year through a reduction in the n

ployees From 8788 00 on June 30 1926 the pay 

reduced to 73183 06on June 30 1927 a savin of 971

The Merchant Fleet Corporation now has only two 

the oriental district one stationed in Yokohama and 

Manila 1ny repair word requiring technical supe

ports without engineers such as Hong hong and Shang

by the use of engineers attached to agencies of the Am

of Shipping and this has been found to work satisfa

PROGRESS ALONG SPECIAI TECHNICAL LIN

Diesel Conversion Program

The fiscal year marked the actual fruition of the Die

program Of the 13 vessels to be converted 7 ere com

end of the year 1 was ready for sea trial 3 were in 

undergoing conversion and bids for the conversion of 

vessel were about to be invited Prior annual repor

information as to the equipment and engines under con

vessels Information relative to the actual motor ship

etc is shown below
ELEVENTH ANNUAL REPORT UNITED STATES sIIIPPING B

Dufe ve cl 

tutor clip Installation contractor delivered GI Daterioof sou Date of 

yard

t lieery 

Tampa I Newport Neacs Fhlphuild lure 71001 Nov 8 1926 Nov 2 

ig S Do Dnck Co

Lnicni

S

do Jana 211924 Dec 22 1921 Dec 2

11

1vVokla do iPt 21111 Ala La1V27 ar In 

CuY of ite Ile du I UCL Inlli npr 27 1927 Abr 2q 

City of Dateirt Jar 14 127 b 

Ymnaahiehi do Alo 2N P 15

NN ear I l nra6cr Lethleloun Shlphulldlrp June 26 Nov n12r Nov 21t

ort nral ior llulncy

well Jule 1 R

I

Iduy Joe 1492 Joe 81

Citylt 1 9 IV tub 1907 1 19 

Kest Garna June 1 127 Nov 21 

senlirole Tlet e

ConS1

Lang 606 1lrue6DJ

l

e15IV27 11 cnpt 30 

I Sea trial to be held about July 20 1927 1 Delivery due

Continuous 30 day test runs were held on the first eng

at the McIntosh R Seymour plant Worthington Pump M

Corporation Busch Sulzer Bros Diesel Engine Co and 

Owens Rentschler Co Twentyfourhour tests Kere con

the one additional marine constructed by Worthington 

additional engines built by BUSCII Sulzer and the two 

en of the singleacting type built by 1lclntosh aC 

LI addition thereto a 30 day test run was observed on the o

acting engine built by McIntosh C Seymour as the first o

Toward the close of the year the 30day test was begun on 

acting engine of the Al A N type built by the New Londo

Enline Co These engines all operated with success on 

and met their contract requirements It is notable that 

vessels so far completed have been able to sail on thei

immediately after the sea trials and it was not necessary 

them to the shipyards for correction of defects or incomp

The records established by these vessels in actual service 

uniformly satisfactory They have approximated or exc

designed operating features particularly speed

The Dieselized ships are being officered by masters and 

gineers selected for their competency by the operations de

These officers are held responsible for the keeping of accurat

upon the basis of which the performance of the ships can 

to time be determined

Toward the end of the fiscal year wort was Levan on 

specifications for securing bids on furnishing an additiona

of main Diesel engines

Tests with Powdered Coal

The tests of but pulverized coal under a Scotch mar

which were started during the preceding fiscal year have 
88 ELEVENTH ANNUAL REPORT UNITED STATES SH

tinued throughout the year just ended with very pr

The tests on the type of coal burner that had first bee

concluded and the burner was removed to the mans

for further development work The burner develop

body Engineering Co was then installed and very 

sults were secured Also a ball mill type of pulveriz

which gave greater pulverization than the type prev

Results obtained with this equipment at the test 

delphia are so promising that authority was granted 

Board to install the equipment on a vessel to be pl

service with a view to trying out the equipment in ac

The piercer built by the Federal Shipbuilding Co w

the Reserve Fleet as the best available vessel for th

Mercer was selected largely because it has 22 sist

Federal type 12 of which are oil burners and 10 co

is considered very adaptable to trade uses With va

this same type using powdered coal oil and ordina

and valuable comparisons should be possible

The alteration and installation of the equipment 

are now under way and it is expected will be com

vessel ready for service within a few months

Radio

Progress was made during the year in the deve

Synchronized radio and submarine signal method 

position finding at sea by utilization of radio and su

sent out simultaneously by light ships A large num

Fleet Corporation ships were equipped with apparat

which such synchronized signals are very satisfa

Distance and position finding by this method have pr

eral months use to be entirely practical and reliable

Representatives of the radio division of the operat

collaborated with representatives of other Governm

and with commercial communication companies in 

preparations for the forthcoming International 

Conference

Close cooperation with the Weather Bureau of the 

Agriculture in obtaining meteorological observation

sea was maintained throughout the year and the 

cooperation were very beneficial to shipping

A saving of approximately 100 0 was effec

year by utilizing naval radio facilities for the transm

and business messages
ELEVENTH ANNUAL REPORT UNITED STATES SIIIPPING BO

TRAFFIC

One of the most important means of reducing the net c

Government of maintaining the Shipping Board s merc

services is through increasing voyage revenues This is 

means by which the fleet trill be of the greatest public serv

cluding those lines sold during the last two years the c

carried in 1927 were 28 per cent in excess of the cargo tons 

1926 The gross revenues of these same lines excluding th

of the United States Lines derived from carrying passeng

30 per cent greater in 1927 than in 1926 To carry th

volume of cargo and earn this greater revenue approxim

per cent more voyages were required

Some of the more important phases of the traffic activ

Merchant Fleet Corporation during the past year will be se

the sections which immediately follow

The Year in the European and Mediterranean Trades

Unusually heavy traffic to Germany accounted for appr

50 per cent of the additional tonnage placed in the se

European ports This was due particularly to the large 

of grain flour cotton and seasonal products The exports 

handled in the services to Europe amounted to appr

3500 0 bales or about 50 per cent of the total moveme

season Of this nearly one third went to Germany

Exports to the United Kingdom with the exception of 

somewhat restricted due to the economic depression caus

coal strike The export cattle movement to the United Kin

important trade with this country years ago and reinaugur

the war seems again to have been practically abandoned d

last fiscal year

Shipping Board services to France notwithstanding th

factory financial situation and labor difficulties in Fren

were maintained with improved results Services to other 

countries generally met with an increased demand for spac

results have been gratifying from the standpoint of th

handled and the revenues derived

Homeward traffic was generally well maintained with t

the European Continent showing some improvement in 

The European organization of the corporation has c

directed its attention toward securing westbound cargoes 

which would otherwise be required to take ballast with 

that the number of ships taking ballast in Europe has be

from 263 in the fiscal year 1924 to 130 in the fiscal year 1

in the fiscal year 1927

613597 277
90 ELEVENTH ANNUAL REPORT UNITED STATES si IP

South American Trades

Freight carryings from North Atlantic and Gulf p

coast of South America have been greater than durin

year Keen competition was met from regularly op

lines many of which operate motor ships but traffic c

generally improved by reason of the absence of the vo

charter tonnage usually employed in this trade Th

strike caused a diversion of much of this tonnage 

Atlantic coal trade where more lucrative revenues w

This enabled the lines maintaining regular service

greater volume of traffic at somewhat better rates

The homeward market from the River Plate was str

rates and offerings prevailed The Brazil market was 

revenues were improved through increases secured i

coffee the principal homeward commodity

Services from the Gulf previously operated under t

American Delta Line and American Dispatch L

solidated for operation under the trade name Gul

Plate Line The combined service was allocated to 

Shipping Co Inc New Orleans for operation 

Republics Line was transferred from a New fork 

operator and itineraries revised to provide better serv

Oriental Indian Australian and African Services

The oriental services showed a general improvem

and revenues Additional vessels were placed in ope

Gulf to the Far East during the cotton season to supp

dinary demand for tonnage The civil disturbances 

the financial crisis in Japan temporarily affected 

revenues adversely but the Philippine market ha

throuehout

The American Far East Line operated between 

oriental ports was consolidated during the year w

Australia Line operated between the Pacific coast p

tralia and New Zealand The consolidated line was 

name American Australia Orient Line A subse

ment of the itineraries of these services was made fo

American foreign commerce and because it prom

improved voyage results

The Atlantic Australian Line was allocated durin

a New York operator for operation jointly with the A

Line and motor ships were assigned to these services 

this union of two services tinder one mananrement eve

mal consolidation it will be possible between the wo

Australia for ships jointly to cover both routes mak

voyage via Indian ports This should give better se
ELEVE XTII ANNUAL REPOI T UNITED STATES SHIPPING 

lower costs The motor ships have introduced economies o

that are possible only with vessels of low fuel consumptio

cruising radius Trade conditions in Australia showed lit

over the previous year while competition remained ex

seven However by routing the majority of the Austra

home via India the board s participation in the impor

homeward trade will be greatly increased Outward ca

the India service showed a gratifying improvement

The West African service continued to show consider

results than during the previous year in respect to both c

revenues profits being reported for a number of complete

Passenger Services

The United States Lines continued their operations wit

class steamers Leviathan and George Washington and 

steamers President Harding President Poo sevelt and 

The America partially destroyed by fire during the pre

was not in service but reconditioning is expected to be 

in time to place her in ervice during the spring of 1928

Althonglh deprived of the services of the America w

six voyages during the previous year the gross reven

United States Lines increased from 160in 102G to 

in 1927 Passenger revenues declined 185 000 but the 

cargo revenues was 581 000 and in mail revenues 281 000 

the year 1926 the passenger revenue of the Ameriea was

It is therefore apparent that the passenger revenue of the 

now active has increased approximately 950 00 Whi

crease was partly due to the five active vessels making 

voyages in 1927 than in 1926 a strenuous sales campaign 

supervisiou over all the general agencies of the Lines was 

factor

The increase in cargo revenue was primarily due to 

tonnage both east and west with some slight increase in 

a great extent however the increase in freight and ma

to a concerted drive to secure this business

Arrangements were concluded with the American Leg

the year whereby the Lrvuithan was made the flagship for 

pilgrimage to Prance during the month of September 19

United States Lines ships will likewise participate in this 

The five combined freight and passenger steamers of 

Island B type operated by the American Merchant Line

New York and London have proven popular with the 

public Thesc vesels have accommodations for 79 passe

are being booked to capacity during the traveling season
92 ELEVENTH ANNUAL REPORT UNITED STATES SIIIP

The motor vessels recently assigned to the Atlan

Line for service between New York and Australia 

quarters for the carriage of 16 passengers each They 

passage to the main ports of Australia and there is 

there will be a demand for these accommodations

Tankers

During the first two months of the fiscal year th

tankers was light and rates were low The market s

September and improvement in rates was shown un

ruary 1927 when the market again weakened Unset

in Mexico had an adverse effect upon the market w

coastal demand for tankers was very light

Traffic Offices

During the year new traffic offices were establish

Norfolk Atlanta and Pittsburgh to assist in the boo

gers and freight for all Shipping Board vessels Sim

previously been established at New York Cincinnat

cago Minneapolis St Louis Memphis and Kansas C

The offices above mentioned are in addition to the 

offices maintained by the United States Lines To inc

ness of the United States Lines in the South a new g

was opened during the year at Norfolk The United 

now have general agencies distinct from the other 

Corporation traffic offices at Boston Philadelphia 

D C Norfolk Pittsburgh Cleveland Detroit Chicag

St Louis and San Francisco Subagencies are main

lanta Omaha Los Angeles and Seattle The genera

United States Lines are maintained in New York

organization

In the New

the

York

appointment

district of

of

the

traffic

Merchant

representati

Fleet 

possible the more aggressive solicitation of business 

trict there was a merger during the year of the So

longvoyage and chartering division with the Euro

In the New England district the reestablishment of the 

ment has also permitted a more aggressive solicitatio

that territory

Future Traffic Needs

While the results of last year as compared with the 

year were satisfactory so far as the operation of 

Board sfreighter services is concerneda marked in

the number of tons of cargo handled and the revenues 

from being shown conditions during most of the 

normal due to the British coal strike The effects of 

not wear off until far into 1927 With the return t

ditions it becomes increasingly evident that the Shipp
ELEVENTIr ANNUAL nEPOET UNITED STATES SHIPPING 

have difficulty in holding its own in those services where 

slower general cargo ships compete with combined freigh

senger vessels of greater speed or where fast motor ships 

ally being placed in service by foreign flag lines Among 

may be cited particularly the services operated between 

lantic ports and cast coast South America and those o

the Orient from both North Atlantic and Pacific coast po

ships under the Dieselization program of the board w

able will in a slight measure only offset this competit

tendency of foreign shipowners is to build vessels of 14 t

an excess over the speed of the board s Dieselized ship

2 to 4 knots

Modern business with the large sums invested demands 

more speed in transport of the higli priced commodities 

rally command the higher freight rates American flag v

meet this demand for speed or see the better paying car

faster and more modern foreign flagships The law of 

demand applies to transportation as well as to other bu

tures and the shipowner must be able to meet the requi

the shippers or fail of success in the overseas transport 

PUBLICITY

During the past year the Merchant Fleet Corporation 

serious effort to acquaint shippers and the public general

character of the service which the Shipping Board vesse

privately owned American flag lines originally establish

Shipping Board are offering With this end in view ther

piled a convenient booklet containing a description of eac

Board service with route map illustrations of ship activ

of ships and operators statistical data for each trade regio

of trade peculiar to each route and a complete index of a

and foreign ports touched by the corporation sships 

has been in such demand that over T0000 have been distri

X monthly house organ known as the Merchant Fleet 

designed primarily for the enlightenment and stimulation 

ployees of the Merchant Fleet Corporation at home and 

also been started Owing to a pressing demand for it t

tion has been extended to include manufacturers exp

others directly concerned with shipping

Motion picture work which has proven of great valu

resumed and an extensive campaign of cooperative windo

developed Cooperative efforts with representative Ame

mess firms resulted in a large amount of advertising fo

Corporation spassenger and freight services Widesprea

was made possible by cooperation with the Navy Departm
94 ELEVENT11 ANNUAL REPORT UNITED STATES SHIP

Famous PlayersLasky studio on the Save O

campaign

Direct mail campaigns were carried on to reach sh

facturers importers exporters and prospective passen

Special attention has been extended by the home 

passenger advertising of the United States Lines a

achieved attest the success of the efforts in this direc

ate passenger business was developed for the New 

service of the American Merchant Lines through inex

tising and descriptive folders Assistance was rendere

Australian Line in securing passengers for the limite

tions available on the motor vessels assigned to this s

sailings indicate the possibility of further developmen

tion

All foreign freight advertising has been placed 

basis and separate budgets prepared for each servic

more efficient expediture of available funds and subst

INSURANCE AND CLAIMS

Centralization of Insurance Work

During the fiscal year the administration of a lar

miscellaneous insurance was transferred from the finan

to the insurance department Ire insurance departm

responsible for the administration of the insurance fu

ment of claims of a marineinsurance nature and the e

all marine and United States Protection and Idemnity 

ance arranged in accordance with mortgages held by 

Board and contracts made by the board It is now resp

dition to its former duties for such miscellaneous wor

nected ivith workmen scompensation public liability 

automobile elevator and fire insurance so that there 

gether under the insurance department all of the ins

United States Shipping Board and Dlercbant Fleet Co

cept the schedule policy covering fidelity bonds issued 

and insurance coverage on funds of the Merchant Flee

and the United State Lines

Premiums credited to the insurance fund and charg

vessels in operation amounted to 42819 24092 while t

which has been accepted as charges against the insura

this and previous years is2893 6r23 31

During the year the Merchant Fleet Corporation du

bined efforts of the insurance and traffic departments 

i getting the cargo underwriters to how their reco

unproved operation of the steamers by quoting lower in

Insurance rates for cargoes moving in Shipping Boa
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

now generally speaking on terms of equality with those 

competitors

United States Protection and Indemnity Agency Inc

On December 1 1926 all litigation in the New York di

previously handled by the United States Protection and 

agency Inc was transferred to the Bureau of Law of 

States Shipping Board

During the last six months of the fiscal year the Un

Protection and Indemnity Agency Inc in addition to 

the monthly statements of cargo claims by managing 

has prepared monthly statements of all injury and illn

received also segregated by managing operators The

statements are used by the Merchant Fleet Corporation 

ficiency classification of operators

Throuh cooperation with the operations departme

sea service section of the Bureau of Operations of the b

has been brought about a better system for the physical e

of seamen resulting in a decrease in the injury and illn

and the employment of a higher grade of personnel fo

Board vessels Persons suspected of being affected with 

cable diseases such as tuberculosis are given special ex

and if found to be affected are denied employment and 

to necessary medical treatment This system should effe

able reduction in claims during the next fiscal year

By closer cooperation with the operations department 

reduction in the losses incident to cargo damage and p

been effected A statement of all cargo damage losses an

is issued each month to the managing operators and h

their interest as it offers a means whereby competition 

about in an endeavor to reduce losses

The agency during the fiscal year ended June 30 19

2561 new claims of which 443 were in litigation as of Ju

During the past fiscal year special effort was made to 

claims which arose prior to February 20 1923 these cla

been taken over from the United States Steamship Own

Protective and Indemnity Association in which the Ship

vessel were enrolled prior to the date mentioned On Ju

there

5

were still pending 329 of these prior claims a

902 869 40in amounts claimed Reference to the 

the fiscal year ended June 30 1926 will show that ther

prior claims still unsettled aggregating 520 091 35in 

claimed The agency reduced the number of these p

by approximately 40 per cent during the fiscal year

Including claims which arose prior to the creation of 

in 1923 as well as those which have arisen subsequent to 
96 ELEVENTH ANNUAL REPORT UNITED STATES SHIP

including those arising in the year just endedthe A

plished the settlement of 3008 claims during the fisc

June 30 1927 684 of which were in litigation The a

ized to be paid on these claims was1080 4324a

total amount claimed of 10768 639 75 These settle

United States Protection and Indemnity Agency litigat

posed of by the Bureau of Law United States Shippin

York district since December 1 1926 but do not includ

small claims aggregating about 5515 000 which were 

various managing operators under their franchise

The amounts expended during the fiscal year ended 

for all United States Protection and Indemnity Agen

expenses in connection with the claims were as follo

Nature of cLrtns

Personal injury to or loss of life of any person whether on boa

ornot 

Illness of passengers or crew 

Damage to other vessels exclusive of collision 

Damage to docks and any other property except damage to oth

vessels by collision 

Damage to cargo or shortage of cargo 

Extraordinary quarantine expenses 

Customs and immigration fines and penalties arising from negle

of officers 

Repatriation expenses 

Miscellaneous 

Total 

On June 30 1927 there were pending in the home 

agency 1457 claims involving 12975 727 57of which 

litigation

Including claims pending in the offices of the manag

and the London office of the agency the total number 

record as of June 30 1927 was 2860 involving 104

which 118 were in litigation

Cargo Claims

On July 1 1926 claims aggregating 8434951 were p

the claims division of the traffic department At the 

fiscal year 1927 this amount had been reduced to 5264

totaling 94596 88 were disposed of during the year

A situation was encountered in connection with shipm

from Gulf ports to the United Iiingdom and Contin

during the fall of 1926 Receivers alleged that flo

delivered infested with weevils and other insects 

condition depreciated the sales value of the flour T

of these claims brought them within the jurisdiction 
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING B

States Protection and Indemnity Agency Inc but th

tance from a traffic standpoint necessitated consideration 

of the corporation and the traffic claims division Confere

held with representatives who had shipped the flour and 

representatives of the foreign receivers who came to t

States to discuss the situation These conferences resu

agreement that the millers would make adjustment wi

ceivers with the understanding that thereafter they 

that each claim be considered by the Merchant Fleet C

on its individual merit A threatened boycott against 

Fleet Corporation vessels was withdrawn the claims were 

to the United States Protection and Indemnity Agency 

the matter is now under way to a satisfactory disposition

FINANCE DEPARTffiENT

During the fiscal year the finance department continued 

the methods employed for recording and controlling the 

the United States Shipping Board and the Merchant Flee

tion Important changes were made resulting in bett

tion of the finances and more efficient and economical m

administration

During the year the finance department was made resp

the preliminary preparation under the vice president for a

tion of the annual budget and preliminary estimates of app

requirements of the Merchant Fleet Corporation This 

sponsibility increased somewhat the finance department s

roll but reductions in other parts of its organization we

during the year resulting in a total on June 3o 1927 

ployees with an annual pay roll of 266 50 The num

ployees was slightly less at the end of the year than at the 

but the pay roll was increased 3775 due to equalizations 

sation and promotions of deserving employees

New Financial Plan

The new financial plan for handling revenues and dis

for Merchant Fleet Corporation vessels which consists in 

revenues and disbursing vessels expenses in the same curre

eliminating conversions of foreign currencies into Un

dollars and United States dollars into the various foreign 

was described in the Ninth Annual Report This plan is 

tive in all ports of the United Kingdom Europe West A

tralia and South America resulting in economies that 

highly satisfactory

Negotiations were completed during the year for the 

the agreement with the Australian Bank of Commerce fo

dling of Merchant Fleet Corporation revenues and dis
9S ELEVENTH ANNUAL nEPOET UNITED STATES SUIP

in Australia under the new financial plan which 

material saving to the corporation

With the completion of the institution of the new 

in Kest Africa and adjacent islands during the pa

all of the foreign revenues and disbursements of the M

Corporation are now handled under the new proc

those in the Orient Manila Japan China India an

tlements ports Due to the unsettled conditions in C

tiations for the institution of the new financial plan 

have been made but the institution of the plan for 

revenues and disbursements in oriental ports will 

soon as practicable

Cash Discount

Advantage of the cash discount privilege was take

ments where that privilege could be obtained and 

continuous efforts in this direction the sum of 1438 25

count was earned in the fiscal year ended June 30 19

in excess of such earnings for the previous year

Collection of Past Due Accounts

A summary of the progress made during the past 

the collection settlement or adjustment of inactive pas

is as follows

Nu

Accounts an hand June 30 192p 

Amounts end added charges to old accounts transferred from current list to

inactive list during focalyear

Total sccounts handled during fiscal year i 

Accounts remaining unsettled June 30 1 927 

Accounts closed during the 5se dyear 

The collection division has also been instrumental in 

disposition of unbilled accounts and securities amounti

159 95 in addition to the above

Shipyard Plants

The Federal Marine Railway property at Savannah 

veyed to the purchaser and the only remaining shipyar

is the Hog Island plant in Delaware arid Philadelphia 

Housing Properties

All of the housing properties constructed or acquire

Corporation pursuant to the act of March 1 1918 

and conveyed prior to the beginning of the fiscal 

exception of 12 houses in Camden N J The conveya

mentioned properties has been prevented because of im

Various utilities park spaces etc in certain of the pro
ELEVENTH ANNUAL DEPORT UNITED STATES SUIPPING 

had been agreed were to be conveyed to the municipalitie

the projects were located are also still held by the board

The Mooreland Realty Co of Bath the entire issued an

ing capital stock of which was held by the board and 

organized for the purpose of holding title to the housing 

Bath Dfe was dissolved during the fiscal year

The dissolution of the following companies the entire c

of which is held by the board and which were organized t

to the housing projects constructed in the various State

they were incorporated has not yet been completed

Atlantic Heights Co Portsmouth N II

Fairview Realty Co Camden N J

Noreg Realty Co Drooklawn N J

Liberty Mousing Co Dundalk Md

Federal IIcme Building Co Lorain Ohio

Wyandotte flume Co Wyandotte Mich

With a few exceptions the officers and directors of the

tions are members of the finance department

Transportation

At the beginning of the fiscal year contracts with the 

companies covering the installation or improvement of 

transportation facilities in connection with the various s

plants remained unsettled

San Diego Electric Railway Co San Diego Calif

Lewiston Augusta Waterville Street Railway Bath Me

Metropiditan Park Commission Roston Jlass

The account with the Lewiston Augusta S Waterville S

way was closed during the year A proposed settlem

Metropolitan Park Commission account was also before th

the end of the year for its consideration

Bonding of Ticket Agents

During the past year the bonding division of the finan

ment has made an extensive investigation on the subj

bonding of ticket agents of the United States Lines in th

This resulted in the establishment of a procedure which 

the United States Lines in conjunction with this division 

the bonding of ticket agents in a decidedly more efficie

than heretofore

PayRoil Robbery Insurance

During the year arrangements were made to cover tran

of ships pay rolls in all donestic ports with pay roll rob

ance

Special Disbursing Officer at Galveston

A special disbursing officer has been installed at Galve

to handle the receipts and disbursements of managing 
100 ELEVENTH ANNUAL REPORT UNITED STATES SHIPP

branch houses at Galveston and Houston Prior to th

of this special disbursing officer at Galveston these 

disbursements were handled by the managing ope

houses in these ports through cash advances made from 

accounts of the managing operators at New Orleans

The new procedure brings under the direct supe

representative of the finance department the handling 

of revenues and disbursements in Galveston and Hous

rially expedites the rendition of the accounts from the b

in addition to eliminating many controversies which f

in connection with handling these revenues and disburs

the old procedure

COMPTROLLER SDEPARTMENT

Rearrangements Affecting Field Offices

During the year the accounting and auditing of the 

Protection Indemnity Agency was transferred to t

office of the comptroller sdepartment An auditor wa

Galveston to control the large volume of business 

Texan ports Arrangements were made to discontinue 

of voyage accounts at Portland and Seattle and trans

to the home office These changes permit a better 

cork involved and accomplish a reduction in administr

Manual Standardizing Operators Accounts

A manual was prepared and issued early in the year 

lining the corporate accounts to be maintained by 

operators and furnishing detailed instructions as to th

of the accounts and their clearance to the Merchant F

tion It consolidated the instructions theretofore cont

orders issued by the general comptroller either i

in conjunction with other departmentsand clarified 

requirements to a degree that brought about a unif

maintenance and rendition of operators accounts an

that has done much to decrease the auditing and ac

culties both of the operators and of the Merchant Flee

Improvements in Accounting and Auditing Procedure

The supplying of information to the traffic depa

assisted in the practical elimination of the material los

sustained on advance and prepaid beyond ventures 

of data to the stevedoring and terminals division w

in making advantageous revisions of cargo handlin

schedules a further reduction in the number of entr

reconcile the operators accounts with those of the M

Corporation the more prompt deposit of collection

sion of revenue and expense accountings by subagent
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

recovery of more than 100 0 from operators indicat

attention given to vessel operation auditing and accoun

the year

Similar care has been given the miscellaneous auditin

eral accounting activities of the department The intern

of accounts the review and consequent standardization 

auditing activities the consolidation of regi sters and 

in classification and in the control of both real and nomin

have wrought a gratifying improvement in their gener

and have made it possible to compile and supply with l

and research than heretofore has been required the fina

ments balance sheets and other reports and detailed 

required by the bylaws and executives of the corpora

litigation

Reduction is Personnel and Pay Roll

department

Despite the

as

additional

a result of

work

Dieselization

devolving

activities

upon the

and

c

increase in the number of voyages made by the oceang

of the corporation the following reductions in personn

roll were effected during the year

Date S

June 30 102M1 

Jnn 311 1L 

Reduction 

CHARACTER OF OPERATING AND STATISTICAL R

As in past years it has been the practice to obtain from 

operators and from the United States Lines estimates o

revenues and expenditures concurrently with the sail

vessel from each port The various reports for each 

carefully checked as to probable accuracy and within 20 

the close of each calendar month the completed estim

revenues and expenditures for all voyages ending that 

made available within the Merchant Fleet Corporation o

As a result of this intensive check and analysis of the 

operators figures operators are now reporting their reven

mately 100 per cent correct in these early estimates and th

itures approximately 93 per cent correct these percen

determined by a comparison of the financial data in 

and expense reports with the actual voyage accounts 

audited many weeks or months later

In the analysis of the revenue and expense reports 

given to unusual or extravagant items of expense and 
102 ELEVENTH ANNUAL REPOIIT UNITED STATES SHIP

past 12 months many very important savings have be

a result of the analyses made Officials of the Mercha

poration also know at a very early date almost exa

line is functioning

Part of the statistical work of the Merchant Fleet C

routine Part consists in the preparation on the bas

poration srecords and from other sources of special re

is made to coordinate this work wherever possible a

necessary information for the proper guidance of t

the United States Shipping Board those of the Mercha

poration and others concerned

The statistical division and operations department a

ent time cooperating with a view to consolidating all l

capacity plans and other ships papers which plan w

more uniform procedure and a central location for al

information and statistics

CONCLUSION

A general reorganization of the Merchant Fleet Co

made effective during the fiscal year Special effort 

effect a more logical grouping of the various activities 

all activities of a similar character in one departme

responsible department head and to have these depart

istered in accordance with commercial practices

Special attention was given to standardizing so far 

ticable the salaries of the employees throughout the va

ments and offices with a view to providing a compensa

office or position that would be commensurate with 

bilities

Rules respecting appointments promotions and sep

the service were promulgated so as to insure equalities i

in the various departments Many minor promotions 

ments of salary were effected that on the whole hav

beneficial in the giving of assurance to employees that 

faithful service would be rewarded

A survey of the activities of the Merchant Fleet Co

the fiscal year ended June 30 1927 indicates that ther

general improvement with a downward trend in the op

of the active fleet The average revenue per voya

increased and the average voyage expense decreased 

approximately 200 0 tons more freight carried in 

1926 by the lines still operated by the United States Shi

The revenue per payable ton for the fiscal year 1926 

less than that for the fiscal year 1927 but the expense 

ton was considerably greater in 1926 than in 1927
ELEVENTH ANNUAL REPORT UNITED STATES sIIIPPINO 

The operations of the United States Lines for the fisc

show particularly gratifying results Excluding the Am

was not in operation during 1927 the improvement in th

ing results aggregated 1016 36 52as compared with 

operations in 1926

A reorganization of the inactive fleet and the transfe

activities connected therewith to the department of op

effected in Dlay and June 1927 The reduction in exp

inactive fleet due to this consolidation will not become e

after the close of the fiscal year 1927 but a reduction 

costs of the care of the inactive fleet of approximately 

forecast

Particular effort was made to build up the traffic depa

a view not only to assisting the operators in getting m

but to acquainting exporters and importers generally w

acter of the service that could be rendered by the vessels o

States Shipping Board

The general improvement in the business activities of t

Fleet Corporation has been made possible only by the lo

and the earnest and able efforts of the officials the head

partments and the employees in the central office and 

APPENDIX

63537 27 8

105
APPENDIX

TABLE IVessels sold vessels disposed of other than by sale vessels 

added to the United Stales Shipping Board fleet during the fis

June 30 1927

VESSELS SOLD

Name Dead i weight Gross Salty price I 

toes

tons

UNRESTRICTED SALES

8tee Chappell 3610 3 127 PIS W1OS5 Ba 

Steams

AmericanStar 75041 5208 139 5W ot 45IXIOjl The C ho

LakeFalama 4155 i 2 CUs 31 OW OD 

w Lake lnevnok 4155 2 GOfi 340000 Now EV

n

Lake Elle arPe 4 2fi1 2674 31 IXq W Texas 

West Canm 8 594 5 945 96 W0 00 OPenn too T

Lake Farber 4155 2035 36 W0 00 York S

than

Total 7 36454 ZT 7W 40

Tankers Dnnned aik 003 4310 210 000 American 

ov

Hect 10397 7071 6 W 00 Beacon O

Dartford 7 9x1 5 Ise 1391 ors 110 3243 James C 

Kehuku

Cabrille

75m 1 5 107 323 ore W

1 no S nY 141eS1l M3466 C hile Ste

Lllmae

Ivspectnr 1 7540 7565 5116 5036 1412 597 M67403 I5p 0Wlq Irr Dector 

Pnralto

Imes 

pa1J

Rishaco0uilh 7565 5030 135 W0 Ishae

Corpo

s

pal

Hampton Roadc i

Cecil County I10251 Q Lit 7 59411 4ny SA Mmx1 an00 Oil TraR

Kekoskee 7540 5124 393 5700 Richfield 

Romulus I7510 5 Lit 314000 0 Steamer 

tion A 

ciPal

Cas tana 7 5 No 200 M 00 United 

1 Corpor

Total13 117 72393 1461

9ugDonald G wood construction 52 1 010 W M J Ca

W feel long

SALES WITH SPECIAL PRO49s10V9

Steel cargo vessels sold with buyers

obligated to Perform specified

allerstion betlerments under so

Pooled Plans end epedticatiou

Eastern Admiral

Eastern Light 10 s5705 6fi e9A6i5 751 IXM1 W lAnlertcav 1MVLW it 

Eastern M armer 10545 7240 176 CIA Steams

Buffalo Bridge 3 4l 315 30 90a W

1I C

Fort

hetoDa

Armsnoug

5

5455

3515

3515

3Q

3D

01W

OW ad

Dtatsodak 5 20 6 3545 30 Car W The Char

Plow City 5 340 32 1 29514 W 3456 Suwad 5340 3545 311 OIIO 00

Tashmoo 5340 3 2ST 123 685 Wse 135 1

I Represents not return OD Sale of OeS iel after deduction of cedit acconnt bottom dam

1n Insurance The amount of the credit in each care is shown immediately following th
108 ELrVENTII ANNUAL REPORT UNITED STATES SHIPP

TABLE IVessels sold vessels disposed of other than by sale vessels 

added to the United States Shipping Board fleet during the fi

June 30 1987Continued

VESSELS SOLD

I Represents net return on sale of vessel after deduction of credit account bottom dam

to Insurance The amount of the credit in each ease is shown immediately following t

Dead

Name weight Gtoa s Sales price 

j tons

eetes WITH eescuL PROVISIONS

continued

Steel cargo vessels sold with buyers

obligated to perform spiraled

alteration betterments under ap

proved plansand specifications

Continued City of Lordsburg 5303 35151 10 000 In Coastwis

Extern Tempest 694 4624 35 OOO 00 Barge 

Coastwis

Wes 8377 S 9i0 50OW W

Corpo

Pit Frank C tsburghburgh Bri W art Milwaukee idge 5191 32751 30 WOW Matson 

WestC M N1

Absaroka

547 121 NO 00

8521 McCorm

Pansa 7 GM15 S4839all 196631 001503850

CraYCro t

Peciflc A

3H 2 25 OF 00 John J R

Lake

Lake Ikatan

Flag 4230 2Infi 25 0IOW

4208 S 619 25 0 Southern 

Union

Lake Miralores

Liberty 4095

4336

2559

2 677

1227WW3I

2x 000 W Stanley H

Federal Bridge 5291 353 30 OW W Swayne 

Total 24 I 150Go 9710 142900

Steel cargo vessels sold for re

stricted operation on trade

routes heretofore sold

Arm Heav Export Lines I 8434 563 63255 00 Export S

Fall AIcon Him

Not designated by trade

Home mal with 6 others

4 purchased from the Ship

ping

oPOukn

Board for restricted i

operate between

west coast United States and

west coast South America

Deucl 8557 580 556200 Grace Ste

Total216 11 NJ 118 57

Tankers snld for Dieselisation by

buyer under approved plans and

specifications

Besseer 70a

John Dl Connelly 19G 4939 1040 000 HIM Of W lThe Atla

Sharon 7 G29 4 San 40 OWW 111 Chestaut lOIL 7 Old 4W3 57 act 00 AHyloCh

citrate 

District of Columbia 10 2A 7841 17782 50 9tand

atC

nin

Total 5 3837 27374 351 iE2 50 i

DISPOSITION OF VESSELS OTDER TITAN BY SALE

Name weight Dead Ora tons Sales price Tran

tons

Transferred to Government de

tsutmeats LakeEIIIJ AYcargo 4261 2674 War Departmen

weps Corporat

Dolphin steel harbor tug 254 War Departmen

length Ill feet General sOffic

I Represents net return on sale of vessel after deduction of credit account bottom dam

to Insurance The amount of the credit in each ease is shown immediately following t
ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

TABLE IVessels sold vessels disposed of other than by sale vessels 

added to the United States Shipping Board fleet dutang the fisc

June 30 1927Continued

VESSELS LOST

ADDITIONS TO SIIIPPING HOARD FLEET

weight Deol Gro

Purchase

tons

to

orgo

6tral eships

If elelAala R 

Elktvv 9693 63

Total 2 18231 1

9

G S Cans Guard cut

TABLE IVessels sold vessels disposed of other than by sale vessels 

added to the United States Shipping Board fleet dutang the fisc

June 30 1927Continued

VESSELS LOST

ADDITIONS TO SIIIPPING HOARD FLEET

Same Length Gross Purchase Transfe

orgo

tons Price

34

Transferred Iron Government de

m

Feet

89312 7 117 31

G S Cans Guard cut 70 1111 1 Trea DepnrG

terer woo construction

41 

Guard Motor launch No 15u8 wood 26 11

mnhuetion

Unfinished cargo 1 9400 1

4 md barges Nos 544 518 110 100

1814

ast 500 tons enppaeath vwood

aen o ctl each

655 5110914 

1 motor

Do

launch 40 100 Sevy DePart

en

30 1111 1611

R mo nhumches ensue 1111 33

vessels

A tean launch 0 100

vDeadt

P at United States mar cane

Sl shnd sale lmericun Star 7 Si 5 2r R 8fi 000 00

TeBLL IIVessel property controlled by the United States Shipping B

Fleet Corporation 1

Compiled as of June 30 1927 This report is based on Information resolved through Ju

status of vessels as of June 30 1927

Total I Contract 

Dead Dead 

Num Num 

weight weight 

her tons her tons

Passenger and cargo 14 143 330 7 62206

orgo 1 771 6 IV 74 34 4 900 alai 

Tankers 10 89312 7 117 31 

Refrigerators 14 100 90 5

41 Tugs 4 1

Unfinished cargo 1 9400 1 94W 

Total steel 1814 6482 70 655 5110914 

Gorc rto CeviCIF tankCrS 1 7 569 1 7 2716

Aood Total

8 

vessels 4823 6 4NI T9 664 5 15R 314 

1 The figures in this table do not include barges launches surf or work beats Tab

of the tenth annual report included the following vessels which had been said during 

June 30 1926 but wbose counts delivery w as dcPrred until the fiscal year ended June 

vesuds 130 of which 127 were sold to the Ford Motor Co passenger vessels 4 tank

Includes steamhip Sosciuszko 7371 deadweight tons in possession of Slipping 
110 ELEVENTH ANNUAL DEPORT UNITED STATES sIIIP

TG

TABLE IIVessel property controlled by the United Slates Shipping 

Fleet Corporation Continued

Purchased Seiz ed cr

Num Dead Kum D

bee weight bee w

tons

SteelPassenger vessels and caret

Cargo Tank rs 2 i 15 WO 5

2 

Total steel 15 121 9 

Total vessels 15 1 121 46

9 

TABLE IIIStatus of vessels controlled by United States Shipping B

Fleet Corporation as of June 30 1927

This report is based on information received through July 1 1927 affeeting status of ve

N

Vessels in hands of operators charterers or active in hands of Merchant Fleet Car

pmetion Cargo operating in specified services United StOhs parts to foreign ports 

Cargo spot in hands of managing operators 

Cargo United States Army erviee 

Passenger cad cargo in specided seryire s

passenger endcargo spot with managing operators 

Tankers ions 

Tugs stool 1 with Operations 3 bare beat 

Togs

Total

woo Iv service with Reserve Fleet

P

Inactive vessels in hands of Merchant Fleet Corporation

Cargo tied up 

Cargo spot with Operations 

Cargo Dicselising 

Passenger and cargo tied up 

Passenger and cargo re conditioning 

Refrigerators tied up 

Tankers steel tied up 

Tankers concrete tied up 

Too wood tied up 

Total 

Grand total all vessels I 

Summary of total fleet

Active Inactive

Total

Dead Dead

Numher weight

tons

Nber mi wtons

2 244551 495 3703 87C

10 102 770 4 40560

8310

14 1620

2 14547

it 1

307 2630 35 516 3850 403
ELE VENTH ANNUAL REPORT am STATES rPIm 

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ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 
116 ELEVENTH ANNTTAL REPORT UNITED STATES SHIPP

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118 ELEVENTH ANNUAL REPORT UNITED STATES SHIP

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ELEVENTH ASNUAL EEI OET UNITED STATES SIIIPPIS6 B

TAneE VIIIBalance sheet as of June 30 1927

ASSETS

AAA fashand unreq ui itiaved nppm print inns aeailibb for general purposesY8

A 1 2 Cush amt unrequ uumned apprn Print inns avnilnLlefor the operation of vmscL take

hack from pure 1 nccrc 

A2 Cosh and unrequi Weed anpropri dions available tar settlement of clai ns appro Iintion net flaoel ccar123 

A3 Cash Boardand u ciatloocd appmpriutlnns United States Shippi g

74 a6a 0

Lees opaauaea Imlanee 4eca1 year ID2 531i 9s4A0

A Consttuvtion

honor

loon

voila

and

Flo

Dicscllzatia

for eeIma

funds

of United States shipping Board 

A5 Accan nL rcrcivnL o

s2 641 ER2 7

Loss

Lasclaim

pn aLlc

ml

u0sels

et

143214 02

171 0 302 el

Ltv reerne for doubtful c uurol lest it accounts 66 170 183 60 96 405 604 E3

AC Accounts recdvable of mo 

A0 Notes rarein ble

Fin6 operators

F1 193 32fib

Lees payable e lls Sr 07 E5

Less claim01f s E2 2020 Lis cosec ce for u doubtful ar unrnlluetllao flccuus 77 202 FO I 036 fi30 94 

A0R Sur rpumlg in supplies 

A10 Loadp lus1gesr eel tolal firanasenotc uritfur qni sale 7143 

I1 IorteO gas r0 ble n l and securities 7 H3 677 E5 Lees payalae ltse 9 15 Less elaim mfsets 2 930 928 R3

Less oboe sfor estimated value 1171 2 161J O9U W 5105 99r as

A12 Accounts and not es roe IiN able for shi p sales Ut

Less hor Ii c libels 135 Oo toi

ESN 7 340

Less cer ellets 020 40

Lesen for uucollec iblaaccounts and votes H 639 b02 40 15894 967 76

A 13 hell estnto and e

A14 Ys imuted rocnvond eue ut chimsiv operation of Oitod states Shi in 

A15 Fwet at PP 6BOUd 

PDruide 1 valucl 

A16 Deferred accounts ad commitment chugw 

TctnL 1711 

LIABILITIES

L1 Aceonnta Pavable and unclaimed wages 4002 5f6 R1 Less receivable onsets 191 660 84

L2Accounts 

L3 De pus i is on

payable

sales aher

of

ad

managing

ot contracts

operat ors

noteosummated E 5321

Less receivable offset s

IVY 164 10

L4 Suspense credits roeeipts from ship sales contracts not fulfilled by 

Less

purcb

receivable

ciers

onsets 3n5 490 65

IE7 696 94

L5 Commitments other than Die etieaticn 

17

L7 RItmcrce for for Inurmee opentivg cl ims claitvsand losse s 

Total liabilities payable from Fencral

m

funds 

L8 Dieseleation commitments and accounts payable 

L9 Re

Rasen

erve for

fur operation

claim settleen

of

m

vessels

ts

take bock from purchasers

Net

Total

orth as at Ja30 1J27 

GGM9279
122 ELEVENTH ANNTUAL REPORT UNITED STATES SIIIPP

SCHEDULE 1Cash and unrequisitioned appropriations available 

poses as at June 30 197

Cash available for general purposes before adjustmentCash in United States Tr

Care

in banks

uaisitiened

in halals

appropriat

of mnnoging

Ions emergency

operators

shipping

and in transit

food

to depozilor

Plus net charges to Diesdization account disbursal from operating fund fur xvhich 

ing fund e ill be reimbursed from Dles elization fund subsequent to June 30 1 

LessAmount to be transferred to construction loan fund sohaegecnt to June

3Q Dr representing excess of sales receipts over liquidation expense

requirements 2 C50 

Amount to be transferral to Dieselumoon amt from operating hind sub

sequent to Juno 30 1127 in aaoolance with United States Shipping

Board reaohdious of June 23 an I July 23 1927 to provide in Dieseliza

tion bond an amount snllicient to cover all Dieselizatiou cpensos aml

commitments invaed on or before June 30 1427 1 6s 

Total cash and once misitioned appropriations available for general purpose

30 1127 

SCHEDULE PCCOnCiliation of Gash and unregnisitioned appro

as shown by the balance sheet with Treasurer scash and approp

as at June 30 1927

Total cash and unrequisitioned appropriation balances per Treasurer sstatemen

30 1927 

Balance sheet application of the above tetal

Cash and uare a isi tinned aptroprlalions available fur general purposes

schedule A l1

88115L

Unrequisitioned api ralciatian for operation of vessels taken back from

Claims

purchasers

fund

ehedule a

ash and appropriation

12

balame pond established by

1

Fleet Corporation apprnpriatjon act for the fiscal 3en623 Schedule

A2 I 927 

United States slapping Board 1025 cash and appmp Iation balance

i ale A3

t30 

United States shipping Board 1929 cosh and a ion balance

United iE

Board 1527 cash ant appmpd

i

i7

seuntsel 1331 

Amount set ar l0far conslmc fonloan fund

m o lnoOet section ofthe arch ant late 1320 avdamemlmut em treto h old rov

Mae 132 schedule AU taus 0263 

Amount established as fund for the rSelaWon of lIll schedulele

A9

t827

Total cash and unrequisitioned appropriations per balance sheet of Juno 30 

SCHEDULE 3Cash and unrequisitioned appropriations availabl

United States Shipping Board as at June 30 192

CashAvailable for salaries and Pgtenxes fiscal Sear 1927 

Available for printing and binding fiscal Sear 1J27 

Total Cash 

Unrequisitioned appropriations

salaries and expenses hecal year 192 

Printing and binding hscid year 1925 

Salaries and expenses fiscal year 1926 

Printing and funding fiscal ar 1920

salaries and ezp fi

ensaa c y 1927 

Printing and binding fiscal year 1927 tutu 

Total unrequisitioned appropriations 

Total cash and unrequisitioned appropriations United States Shipoing Boa

Less snmunt of 192 5 appropriations unrequisitioned as at Juno 20 1927 a be

covered into the United States Treasury subsequent to that date

Salaries and expensas fiscal year 1125 

Printing and binding fiscal year 1J25 

Cash and unrequisitioned appropriation available for expenses of United State

H eard 

I The unexpended balance of this appropriation as at June 30 1927 will be 

Treasury as of July 1 1927 cad this amount has therefore been deducted from 
N

ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING 

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128 ELEVENTH ANNUAL REPORT UNITED STAIES SFI

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ELEVENTH ANNUAL REPORT UNITED STATES SIIIPPING B

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1 ELEvr NTII ANNUAL REPORT UNITED STATES SH

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ELEVENTH ANNUAL REPORT UNITED STATES SHIPPING B

TABLE YILtames

Board

co

z the ter service onemployees e ofthe United Slat

Name

C 0 Arthur

Designation Legal residence 

Director Indian AV nehinghm ll C

LB

Assistant clerk

leora 

I S Benvl Conllni cnor

senior la Pest Iashingtall U C 

Zelda Blank

Arthur At local Admi aheounselIMassachusetts 

Ruth Boosa nul Junior clerk Al rssnuri

IN whingtml 1 C

Rol ert LBoyd Iabnrer New Tur

In lle It B lskeY tturne y rio 

path E Cain Aladel 0Carragher Junior File clerkclerk Me ellic ttS 

Lola F Cass Senior stenuk ill IklnLoma

brallBlapvvur t Icrk

Aliehip

n 

Jean Colwell d word PCo teJunior Asslnotclerk o chw slatisUClav tonmrLicut

Ilinhmcton ll C 

Blanche Al Corry stenographer

Jumnr stenngrephea south Carolina 

Laude Darraeott

Albert D tracts abhwtecaktt Iirginin Xernak

laude S nawsmt Thenrs D Ueckclmxn Chief lerk file Clerk All kin

Ernest Al Dew Senior clerk Ohio Wall lington 1 C 

Afaremet F Umcden Clerk

o

an P IIdrid Earicrr du 

nAll iel sk rl le IIPad purl er

Ohio Alarvarct 1 BNInS Clerk Auhilgon D C 

Caroline U Planner Eeninr clerk

Pennsylvania

N 3I Flinn

r

Isvhin gnn A 0

Alacl elle Pry Telephone olcrator 

Se onM inadmre

Olive Al Ilrndercan

Ferretarc dn

C leek Iirnia 

Lillian At llildchraud Frnlm slerecrapher Inrylund

worth Onkota 

ICilliam S Ilill lnnnli loner

Senior Padre lcania 

Nettie J Ilippla

Ja mes Jarksnn

slOmplePher

Unskilled ILorer i

Larkin King Label IVnsllin V gton U0

o 

Olive VV Ring

Iotlie P Ring Clerk senior typist Earland

m D C

Inrcnee Jmy LibraryAismnt 

ashin gton

cmnh Cemli 

Leon A EeIn lie C elk

l irginia 

Alanillx it ICCue i Assistant clerkStenographer INashivgton D C 

Bessie C 3lallicete tenngrxpheL 

J111ius ALa n s Laborer Oregn do 

Jefferson MccrS Alice 5 Mrlrreyt Commissioner Feniurclerk Alnssachns etts

John Nj olson 1p

senior stenographer

clPelt Now A nshimpon Y

D C 

Alice F Nnllner

T V Colanr Chairman We York 

AL J Pierce

C Plummer

Chief clerk Tennessee

Cmnnlissioner Ataine 

Iogan E Presley Ctrit Ohio 

Fred A QuinvSenior clerk Iendodo lyania 

Lee E Rneck

J G Reeker0 Clerk Assistant purchasing agent A flslli ngion D C 

Katherine C lia Tolephone aPcl tr

rin

d0 

Linda At Shanahan Flealiner Aasrgton D 0

do 

D A Shannon Alen hil Ph Pemtnr indinn

Marietta A Stevens File clerk

Eoui iana 

Iceland K Smith Commissioner 

Philip R Teller do Califonli do 

Anna Tiede Ecerinerto retar Cashir loo n C 

Landon A Triplarrn Assistant Net Y

a 

Marie C Van 1rnum Telephone operator ICisrnn 

proper VanTosn rrne

Mrev 6 Seaga FeFeniur nine stenographer typist qasdlingtnn

o

D C 

Alma L Ilebster

i

do

ndrrrlrrk rxli urnia 

feacWesL

LillianAilsnn Senior typist lrinnesn

Bortbn E Aolfe Clerk Aashinh nnn C 

IV 1 Anods Aeoonntnot Llsmrhu sett 

Virginia E Voodward Clerk Marylan Washington D C 

ARPrt C R Junior clerk

Pennsylvania 

Walter Ziwn Senior typist
133 ELEVENTII ANNUAL REPORT UNITED STATES SH

Names and compensation of employees of the United States Shipp

been in the service some part of the fiscal year ended Jun

Nome Designation L residenre 

elni Pr tleal Clnrk ren

ashin4ton D C 

Jimiii ele k I A1 i 

toht

t

T

K Color

ole

IF m r i hingmn D C 

Doliy

mnu 2un mr l rtavt LIr3O1 i

m Dolly

a A B

Clerk tYPist I

N11 Caroli na 

riArmineI dlua1 1nineAdministrativ assisnt I

liminrcrrk RNewwh mloq ForkD 0I 

ICY H Aforr111 lOht L g

rcmlur5 Ala suchnsetts 

IHrrY S Iiiggl RRles

JU1

dO

cl Ok

arcland

3

Clrgl nix 

vh

E

SPO

SengsLUl

Or

l Assi txnt

Attorney

director Sew Fork 

Neu 3ermY 

o Yee Co l

Call onna 

1 A AVaddCU v Oinrr 8mrtt DaAgW 1 IL Faol Olk1 Cx aolge 

irgi via 

1 Tmns@rred to fleet rolls
INDEX

Complaints

Formal

Informal

Comptroller sdepartment work of 

Conference agreements

Consolidated cash statement appendix Table VII fa

Construction bureau of report 

Construction loan fund

Contracts opinions recoveries and special assignments division re

Cotton movement of during British coal strike 

Deck boys enrollment of

Diesel conversion program

Employees Shipping Board list of appendix TableXI

European and Mediterranean trades 

Federal transport services

Finance bureau of report

Finance department work of 

Ford Motor Co sale of vessels to

Admiralty division report

Africa services to 

America steamship damaged by fire 

Earnings during year 1926 by French 

American

ernment

Lureau of Shipping certificates of recognized 

AngloMexican Petroleum Co case of

Appropriations for allotments appendix Table IX 

Australia customs discrimination of 

Balance

Services

sheet

to

appendix fable V III 

Benson N S commissLoner 

Bills of lading

Boston lass Shipping Board piers at

Brooklvn N Y Shipping Board piersat 

Bureau of Construction report 

Bureau of Finance report 

Bureau of Law report 

Burc iof Operations report 

Bureau of Regulation report 

Bureau of Iesearch report 

Bureau of I raffia report 

Canada preferential tariff rates of 

Cargoclaims

Charleston S C Shipping Board piersat

Chart organization

United States Shipping Board fa

United States Shipping Board Morehant Fleet Corp oration fac

Claims 

Cargo

Ilandling of by legal department Indemnity A

Settlement

Inc

by United States Protection and 

Coal pulverized testsof 

Coastwise lams 

Great Lakes

Philippine Islands 

Virgin Islands

Codification of navigation laws division report

Collisions at sea proposed change in law regarding 

Complaints

Formal

Informal

Comptroller sdepartment work of 

Conference agreements

Consolidated cash statement appendix Table VII fa

Construction bureau of report 

Construction loan fund

Contracts opinions recoveries and special assignments division re

Cotton movement of during British coal strike 

Deck boys enrollment of

Diesel conversion program

Employees Shipping Board list of appendix TableXI

European and Mediterranean trades 

Federal transport services

Finance bureau of report

Finance department work of 

Ford Motor Co sale of vessels to
134 INDEX

Foreign ports study of 

Foreign registry transfers to

Fuel

Prices

Conservation

centralized purchasing

of

of 

Tests of pulverized coalfor 

Grain movement of during British coal strik

Great Lakes coastwise lags 

Hill WScommissioner

IIoboken N J Shipping Board piersat 

IIousing properties disposition of 

India services to 

Industrial relations division report 

Sea service section 

Insurance department work of 

Internal combustion propulsion 

Interstate Commerce Commission 

Investigations division report 

Laidup fleet 

andgrant equalization agreements 

Lag bureau of consolidation 

Report 

Admiraltv division 

Codification of navigation lams division 

Contracts opinions recoveries and special assignments di

Litigation and claims division 

Tabular statement of appendix TableX

Legal department of Merchant Fleet Corporation consolida

Bureau of Lam 

Lines operated by Shipping Board appendix Table IV 

Liquidation appendix Table I 

Litigation and claims division report 

Tabular statement of appendix Table 3I 

Mail United States carriage of 

Dlalolo steamship 

Mediterranean and European trades 

Merchant

Report

Fleet Corporation

Organization 

Operating costs reduction of 

Myers Jefferson commissioner 

Navigation and shipping lags codification of 

O

Norfolk Va Shipping PI g Board Piers at 

Connor T V chairman Shipping Board 

Operations bureau of report 

Industrial relations division 

Investigations division 

Piers and wharves division 

Port facilities division 

Operations Merchant Fleet Corporation 

Organization

ShippingBoard 

Merchant Fleet Corporation 

Oriental district reduced cost of maintaining 

Oriental Indian Australian and African servic

Personnel reduction of

Bureau ofLaw 

Comptroller sdepartment 

Finance department 

Oriental district 

Pesaro steamship case of 

Philadelphia Pa Shipping Board piersat 

Philippine Islands coastwise laws if 

Physical examinations ofseamen 

Piers and wharves division report 
INDEX 

Plummer E C vice chairman Shipping Board 

Polish American Navigation Co proposed legislation in favoro

Port facilities division report 

Port Series reports 

Ports foreign studyof 

Profit and loss statement of appendix TableX 

Publicity

P

for Shipping Board services 

lvorizod coal testsof 

Purchase of supplies improved methods for 

Radio division wnrkof 

Railroads ownership of vessels by 

Rcostrv transfers to foreign 

Regulation bureau of report 

Research bureau of report 

Reserve fleet care of 

Sale of vessels 

Statement showing appendix Table I

Sett service section workof 

Secretary of Shipping Board report 

Section 15 agreements 

Senate resolution 262 board sreport in response to 

Services maintained by Shipping Board vessels appendix TableV 

Shipsales 

Statement showing appendix Table I

Shipping conditions duriug y car 

Shipv arc plants disposition of 

Smith R R cnnuuissioncr 

South American trades 

Stevedoring costs of 

Summarized statement of conditions 

Tan kers 

Teller P S commissioner 

Tonnage handled during fiscal year 7

Reduction in cost of handling 

Traffic bureau of report 

Traffic department report 

Trafficoffices 

Transfers to foreign registry 

United States Lines operating profits of 

United Stales Protection and Indemnity Agency Inc consolidated 

Burca iif Law 

VesclsAnalysis of total vessel property acquired by the united States 

ping Board appendix TableVI 

Constructed by United States Shipping Board Emergency 

Corporation appendix fableVI 

Controlled by United States Shipping Board appendix Table 

Purchased by United States Shipping Board appendix Table 

Seized exenemy appendix TableVI 

Ferviccs maintained by appendix Table V 

Status of appendix fable III 

Transferred

NJ

from other Government departments appendix 

Virgin Islands coastwise lass of 

Voyages number of during fiscal year 

Average length of 
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