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FEDERAL MARITIME COMMISSION

WASHINGTON DC

June 30 1966

JOHN IIARLLEE Chairman

JOHN S PATPERSON Viee Chairman

ASHTON C BARRETT Member

IAMES V DAY Member

GEORGE 11 IIEAR N Member

THOMAS LIST Secretary
LETTER OF TRANSMITTAL

FEDERAL MARITIME COMMISSION

Washington DC 20573

October 14 1966

To the Senate and the House of Representatives

Pursuant to section 103 e of Reorganization Plan No 7 of

1961 and section 208 of the Merchant Marine Act 1936 I respect

fully submit the Annual Report of the Federal Maritime Commis

sion for the fiscal year 1966

JOHN HARLLEE

Chairman
0

Md

0O

UO
CONTENTS

Page

HIGIILIGHTS OF THE YEAR 1

SCOPE OF AUTIIORITY AND BASIC FUNCTIONS 7

INTERNATIONAL COMMERCE 8

Carrier Agreements

8

Exclusive Patronage Dual Rate Contracts 9

Shippers Requests and Complaints 10

Freight Rates

11

International Relations 15

DOMESTIC OFFSHORE COMMERCE 17

Regulatory Activity

17

Special Studies 18

TERMINAL OPERATORS 19

FREIGHT FORWAItDIN 21

FINANCIAL AND ECONO H N LYSIS 23

ENFORCEMENT AND COIILItNCE 25

Informal Complaints 25

Factfinding Proceedings 28

Field ILn estigat ions

28

Formal Proceedings 28

PROCEEDINGS BEFORE HE II ING EN1MINEItS tND FEDERAL

I11t1T1 IE COMMISSION 30

Final Decisions of the Commission 30

Decisions of hearing Examiners 35

RULEM tKING PROCEEDINGS 39

LITIGATION kU

LEGISLATIVE DEVELOPMENTS 13

ADMINI51 RtTION 4 k

Organization Chart 46

Statement of Appropriation and Obligation 47

HIGHLIGHTS OF THE YEAR

The Federal Maritime Commission in fiscal year 1966 carried

out its regulatory responsibilities in ocean transportation of pro

tecting the shipping public against discriminatory or otherwise

unlawful conduct by the industries it regulates without unnecessary

interference with business development

The highlights in regulation of ocean transportation for the fiscal

year ending June 30 1966 are as follows

Rates on Government Owned or Sponsored Cargoes

The Commission continued its efforts to insure that government

cargoes move in our foreign trade at non discriminatory rates In

this area significant accomplishment was achieved with respect to

the 1 Vietnam war risk compensation and ship detention charges

and 2 rates on the movement of household goods by the Department

of State

The Commission with the cooperation of the Agency for Inter

national Development the Department of Agriculture and the Mili

tary Sea Transportation Service conducted negotiations with the

carriers and conferences with repect to the basis for the assessment

by such carriers and conferences of surcharges for cargoes moving to

Vietnamese ports These negotiations conducted without recourse

to formal proceedings resulted in effecting a reduction by the car

riers and the conferences of the war risk compensation charge from

570 per ton to 550 per ton t following the close of the fiscal year

all of the conferences and most of the independent carriers further

reduced the rate to 5375 This reduction will save the USgov

ernment millions of dollars in transportation charges

The Commission based upon the express concern of the Depart

ment of State approached a number of conferences in an effort to

encourage them to reduce the rates on the Department of State
movement of household goods to the same level as rates available

to the military As a result the Far East Conference and the Pacific

Westbound Conference reduced State srates to approximate parity

with rates on military traffic The savings that will be realized

from this reduction will approximate 500 0 annually The

Commission also approached the North AtlanticMediterranern

Freight Conference who had the matter under consideration at the

close of the year

Interconference Agreements

A number of socalled interconference agreements have recently

been filed for approval These agreements between conferences

that serve different coasts of the United States cover a number of

activities from ratefixing to conference housekeeping Although

interconference agreements are recognized in section 15 of the Ship

ping Act the legislative history of the 1961 amendments indicate

that Congress viewed efforts to establish superconferences with

some concern Accordingly the Commission has instituted several

formal proceedings to examine the competitive impact such agree

ments are likely to have on American foreign commerce

Containerization

Containerization probably is the most significant recent develop

ment in the marine transportation industry The intermodal move

ment of containerized cargo was pioneered by carriers in our

domestic trades and for the past 5 years has been a dramatic factor

in keeping costs and rates down It was demonstrated in the domes

tic trades that containerization benefits both the carriers and the

shippers It means Less cargo handling less special packaging

less loss damage and pilferage faster ship turn around and less

expenses in loading and unloading

In April 1966 containership service was inaugurated in the

important trade between Atlantic ports in the United States and

Europe and at the end of the fiscal year a number of containership

services were competing in the North Atlantic trade and plans had

been formulated to introduce the service to other major foreign

trades It is our hope that such benefits will prove to be a signifi

cant stimulant to our foreign commerce
The Commission has undertaken a study to determine the impli

cations of these technological advancements in ocean transportation

It is collaborating with carriers shippers freight forwarders and

others who are affected to determine whether regulatory changes

are needed to secure for the public the full benefits of intermodal

container transportation

Rules for Handling Shippers Requests and Complaints and

for Filing of Tariffs

During fiscal year 1966 the Commission srules were fully oper

ative for the 1 Handling of Shippers Requests and Complaints

and 2 Filing of Tariffs These rules were the last required for

implementation of Public Law 87346 enacted on October 3 1961

The first of these rules required the carriers and conferences to

establish a procedure for the handling of shippers requests and com

plaints and the publication thereof for the information of the ship

ping public As a consequence it is anticipated that this procedure

will increase the possibilities of carrier shipper resolvement of

problems without resort to formal and expensive proceedings before

the Commission

The second of these rules prescribed uniform tariff filing pro

cedures and format This rule has and will be of significant benefit

to carriers conferences and shippers because it will provide for uni

form interpretation of tariff provisions resulting in an elimination

or decline in contention between parties because of unclear and

ambiguous provisions

Commission Decisions

The Commission sdecisions in formal cases are covered in another

section of this report However of particular importance were the

following

Docket No 1114Iron and Steed Rates Export Impart Although the

Commission decided that the respondents rates on iron and steel in the trades

under investigation w ere not shown to be contrary to sections 15 17 and

18hI 5 of the Act Ileertheless the decision in this case set a precedent

for future guidance by providing that When a rate disparity in reciprocal

trades on similar commodities appears and when movement of goods under

the higher rates has been impaired the carrier quoting the rates must dem

onstrate that the disparate rates are reasonable The carrier would

2
be required to justify the level of the rate by showing that the attenda it

transportation circumstances require that the rate he set at the level

Docket No 1171 Outbound Rates Affecting the Exportation of Hiph

Pressure Boilers Utility Type Parts and Related Structural Components

Although it was determined in this case that the respondent conferences rates

were not in violation of the statute nevertheless a precedent for future

guidance was provided as follows where a rate disparity is shown

between a rate from the United States and a rate from a foreign port to tk e

same destination on similar commodities and the movement of goods under

the higher rate has been impaired the carrier quoting the rate from tte

United States should demonstrate the reasonableness of the rate by showing

that the transportation conditions in the two trades are not the same in ma

terial respects or that the attendant transportation circumstances require that

the rate be set at that level If carriers in two separate trades has e

noticeably different levels of rates on the same item and no obvious diffe

ences in transportation circumstances appear we will proceed on the assump

tion that the two trades enjoy similar conditions

Matters in Litigation

Carnation Case On February 28 1966 the Supreme Court

Carnation Company v Pacific Westbound Conference 383 US213

the Court held that treble damages were recoverable under the anti

trust statutes in instances in which common carriers in the foreign

commerce carry out agreements subject to section 15 of the Act prio r

to filing with and securing approval of the Commission Unde

this decision persons who have been damaged by unauthorized con

certed activities of carriers can elect to sue in court for treble

damages under the antitrust statutes or file a complaint with the

Commission under the Shipping Act seeking actual damages The

decision strengthens the regulatory machinery and is a significant

deterrent to unauthorized concerted activities by persons engaged in

our ocean commerce

Penalty Suits for Violations of Section 15 Two penalty suits

were recently settled by the Department of Justice by the paymen

of sizable sums by conferences that had allegedly violated sectior

15 of the Shipping Act by not promptly admitting qualified carrierr

to membership The North Atlantic Westbound Freight Association

delayed about 15 months in admitting American Star Line and the

Atlantic and GulfAustraliaNew Zealand Conference held up the

admission of ABAtlanttraffik for nearly a year The settlements

30000 and 35000 respectively were substantial enough to in
dicate clearly to these and other conferences that the Commission will

take positive action to enforce statutory requirements regarding free

and full admission to conference membership

Dual Rate Matters

Through use of the guidelines established in the Dual Rate Cases

the Commission has been able to approve the institution of 10 new

systems and 4 modifications to existing systems without the expense

involved in protracted hearings The carriers involved in each of

the 14 instances carried their burden of showing compliance with

all of the statutory provisions in section 14bof the Shipping Act

and with the requirements set forth in the Dual Rate Cases

Guidelines for Shippers

In further action to inform exporters and potential exporters about

ocean shipping procedures the Commission in conjunction with the

Department of Commerce published in May 1966 a booklet entitled

Ocean Freight Guidelines for Shippers The booklet discusses

the activities of steamship conferences the principal factors that

affect rate making and services and assistance available to shippers

Other Significant Activities

In other regultory activities the Commission in fiscal year 1966

instituted on its own motion 56 formal proceedings under statutory

provisions of the Shipping Act 1916 and the Intercoastal Shipping

Act 1933 issued 68 final decisions involving 177 formal proceed

ings approved under provisions of section 15 of the 1916 Act 247

carrier agreements 59 terminal agreements and 977 freight for

warder cooperative working agreements issued 63 freight forwarder

licenses processed over 166 000 tariff filings granted 407 and

denied 23 special permission requests to effect new or increased

freight rates in advance of the statutory filing time initiated action

to resolve 628 informal complaints and concluded its action with

respect to 439 such complaints participated in 32 cases in litigation

before the courts iming the decisions and orders of the Commis

sion concluded 391 field investigations including those concerning

violations of the shipping statutes and those involving the qualifica

tions of applicants for freight forwarder licensing and intensified
its management improvement program in concert with the President s

objective to administer the laws prudently expeditiously and at the

lowest possible cost to the taxpayer

These and other activities of the fiscal year are set forth in detail

in subsequent sections of this report

Special Activities of the Commissioners

In July 1965 the Chairman accompanied by Commissioner Ash

ton C Barrett participated in negotiations with representatives of the

Organization for Economic Cooperation and Development in Paris

In January 1966 the Chairman and Commissioner James V Day

met with European shipowners in London and participated in discus

sions with the International Maritime Consultative Organization

Preliminary to this Commissioner Day attended a meeting of the

OECD in Paris

In addition in connection with the Commission sregulatory re

sponsibilities the Chairman visited maritime facilities and met with

industry representatives in the state of Alaska Vice Chairman John

S Patterson discussed maritime regulatory problems with industry

representatives in San Juan and Commissioner George H Hearn

visited Hawaii to participate in the combined Maritime and National

Trade Week convocation addressed the Propeller Club and the

Chamber of Commerce Annual Meeting While there he conferred

with Governor John Burns and industry and shipping groups
SCOPE OF AUTHORITY AND BASIC

FUNCTIONS

The Federal Maritime Commission was established by Reorgani

zation Plan No Z effective August 12 1961 as an independent

agency to administer the functions and discharge the regulatory

authorities under the Shipping Act 1916 Merchant Marine Act

1920 Intercoastal Shipping Act 1933 and Merchant Marine Act

1936

The Commission is composed of five Commissioners appointed by

the President with the advice and consent of the Senate The Com

missioner are appointed for a 3year period with not more than

three of the Commissioners being appointed from the same political

party The President designate one of the Commissioners to be the

Chairman who also serves a the chief executive and administrative

officer of the agency

The statutory authorities and functions of the Commission embrace

the following principal areas 111 regulation of services practices

and agreements of common carriers bv water and certain other per

sons engaged in the foreign commerce of the United States 2

acceptance rejection or di approval of tariff filings of common

carriers engaged in the foreign commerce 1 3 regulation of rates

fares charges classification tariffs regulations and practices of

common carriers bv water in the domestic offshore trade of the

United States 11 investigation of discriminatory rates charges

classifications and practice in the waterborne foreign and domestic

offshore commerce and 5 rendering decisions issuing orders

and making rules and regulation governing and affecting common

carrier by water terminal operators freight forwarders and other

persons subject to the shipping statutes
INTERNATIONAL COMMERCE

Carrier Agreements

Section 15 of the Shipping Act 1916 authorizes the Commission

to grant exemptions from the provisions of the antitrust statutes

to common carriers by water in the commerce of the United States

and to other persons subject to the Act in instances in which such

carriers or persons enter into arrangements undertakings or agree

ments regarding anti competitive activities enumerated in that sec

tion Such activities include fixing rates controlling competition

pooling or apportioning earnings or traffic allotting ports or regu

lating sailings limiting or regulating the volume or character of

traffic to be carried and providing for exclusive preferential or

cooperative working arrangements The agreements so required

to be filed must be approved by the Commission unless it finds after

notice and hearing that the agreement 1 is unjustly discrimina

tory 2 operates to the detriment of the commerce of the United

States 3 is contrary to the public interest or 4 is in violation

of the Shipping Act 1916

In the first half of fiscal year 1966 the project to formally termi

nate all inactive agreements was completed This project entailed

a review of the records relating to Agreements No 1 through 5999

to establish which of the agreements in this series heretofore approved

by the Commission and predecessor agencies were still active

Orders confirming the results of the review were issued by the Com

mission on October 19 1965 and December 20 1965 thereby

terminating all agreements in the series numbered 1 through 5999

except the 56 active agreements specifically identified in the

appendices to the orders

At the beginning of fiscal year 1966 there were 107 agreements

pending Commission approval under section 15 consisting of 52 new

agreements and 55 modifications to existing approved agreements
During the year 221 agreements were filed 87 new agreements and

134 modifications The Commission approved 247 agreements

25 were withdrawn by the parties as a result of informal discussions

requesting clarification or revision of the agreements and of the

balance of 56 agreements at the close of the fiscal year 48 were in

process of staff analysis and 8 were in docketed proceedings

At the close of fiscal year 1966 there were 707 active approved

agreements consisting of 131 conference and rate agreements 14

joint conference agreements 50 joint service agreements 19 pooling

agreements 28 sailing agreements 385 transshipment agreements

and 80 miscellaneous cooperative working arrangements

Exclusive Patronage Dual Rate Contracts

Section 14 1 of the Shipping Act 1916 enacted by Public Law

87346 effective October 3 1961 authorizes the Commission to

permit with certain specified statutory safeguards the institution

by carriers or conferences of carriers of a contract system available

to all shippers and consignees equally which provides lower rates to

a shipper or consignee who agrees to give all or a fixed portion of

his patronage to such carriers or conference of carriers The statute

requires that the Commission appro e such dual rate contract systems

unless it finds that the contract amendment or modification thereof

will be detrimental to the commerce of the United States or con

trary to the public interest or unjustly discriminatory or unfair

as between shippers exporters or ports or between exporters from

the United States and their foreign competitors

Subsequent to the Dual Rate Cases Decision of the Commission

on March 27 1964 four conferences instituted court proceedings

attacking the Commission sdecision with respect to certain provi

sions in their particular dual rate contract forms The United

States Court of Appeals for the Ninth Circuit set aside the orders of

the Commission because of procedural defects and remanded these

four cases to the Commission for reconsideration limited to

such clauses of the proposed contract as were not in the subject

matter dealt with in the hearings The Commission by order

served June 24 1965 reopened the docketed proceedings in three

of these dual rate cases in order to correct the procedural deficiency

In two of the aforementioned remand cases the Commission by order
served February 16 1966 required the two conferences to include

in their dual rate contracts two provisions one concerning shipper

subscriptions to tariffs and another establishing the effective date of

tariff rates The third remand case is pending before the Commis

sion for consideration and disposition of a petition by the Confer

ence seeking reopening and reconsideration of the Commission

remand order of June 24 1965 On the fourth remand case the

conference on November 3 1965 waived its rights to any remand

proceedings

approved form

and

of

requested

dual rate

permission

contract

to

By

institute

order served

the Commission s

November

5 1965 such permission was granted by the Commission

The following table reflects dual rate systems in effect and pend

ing applications on hand at the beginning of fiscal year 196i5

received during the period acted upon and the balance on hard

July 1 1966

FISCAL YEAR 1966 ACTION WITII RESPECT TO EXCLUSIVE

PATRONAGE DUAL RATE CONTRACT SYSTEMS

a Dual Rate Contract Systems in effect

As of July 1 1965 45

Approved during fiscal year 1966 9

Approved systems in effect as of July 1 1966

b Dual Rate Contracts filed for approval pursuant to section 14b

Public Law 87346 during fiscal year 1966

hrodifications to

New systems existing systems

Pending July 1 1965 3 6

Filed fiscal year 1966 14 3

Approved or withdrawn fiscal year

1966 10 6

Pending July 1 1966 7 3

Shippers Requests and Complaints

The basis for new rules adopted on July 9 1965 with respect to

shippers requests and complaints is Public Law 87346 75 Star

7634 which provides

The Commission shall disapprove any such agreement after

notice and hearing on a finding of failure or refusal to

adopt and maintain reasonable procedures for promptly and fairly

hearing and considering shippers requests and complaints
In order to assure that the purposes of the above quoted statutory

provision were adequately and efficiently accomplished and to insure

compliance therewith the Commission srules in the form of General

Order 14 46 FR 527 require that conferences and rate making

groups

1 file a statement outlining in complete detail the procedures

for the disposition of shippers requests and complaints 2 file

quarterly reports covering all shippers requests and complaints

received or pending at the beginning of such calendar quarter

3 if foreigndomiciled designate a resident representative in the

United States with whom shippers situated in the United States may

lodge their requests and complaints and 4 file a tariff provision

containing full instructions as to where and by what method shippers

may file their requests and complaints

Onehundred and five statements detailing the procedures for

disposition of shippers requests and complaints and 242 quarterly

reports of actions taken by conferences and ratemaking groups

were filed with the Commission during fiscal year 1966 and reviewed

by Commission staff

The procedures and reports have been examined to assure that

the actions taken by the conference and rate making groups are

consistent with the requirements of the Shipping Act 1916 and

the Commission srules It is noteworthy that the reports received

show that shippers have received favorable rate action on most of

their requests As a result of the reporting requirements of Gen

eral Order 14 the Commissions vigilance over freight rate matters

and the more serious assumption by conferences and other rate

making groups of their responsibilities toward shippers a higher

incidence of rate reductions has been achieved

Freight Rates

The statutory requirements with respect to the filing of ocean

freight rates by common carriers by water in the foreign commerce

of the United States and conferences of such carriers are set forth

in section 18 b of Public Law 87346 The purpose of these

provisions is to provide for public notice with respect to the estab

lishment and assessment of rates and practices attendant thereto

and to guard against unjustly discriminatory rates and practices

Specifically section 18bprovides 1 criteria with respect to the
contents of a tariff 2 that copies of tariffs be made available to

any person and that a reasonable charge may be made therefor 3

timely filing requirements for changes in rates charges classifica

tions rules or regulations as well as new or initial rates and tariffs

4 that no common carrier governed thereby shall assess compen

sation for transportation of property or any service in connection

therewith which is different than that specified in its tariffs on file

with the Commission and in effect at that time 5 that no common

carrier shall rebate refund or remit in any manner or by any device

any portion of the rates or charges specified in its tariffs nor extend

or deny any privilege or facility except in accordance with such

tariffs 6 that the Commission shall prescribe by regulation the

form and manner in which tariffs shall be published and filed 7

that the Commission is authorized to reject any tariff which is not

in conformity with the section and 8 that the Commission shall

after hearing disapprove any rate or charge which it finds to be

so unreasonably high or low as to be detrimental to the commerce

of the United States

Tariff Filings

The Commission sprogram to obtain compliance with its Gen

eral Order 13 governing the filing of tariffs by common carriers by

water in the foreign commerce of the United States and by confer

ences of such carriers was completed in fiscal year 1966

A total of 2335 tariffs were on file with the Commission at the

close of fiscal year 1966 These tariffs are considerably improved

and uniform documents Shippers can today review them and

retrieve rates much faster They can be interpreted with signifi

cantly greater certainty which should result in a decline in conten

tion between parties because of unclear and ambiguous provisions

In carrying out this program 507 tariffs previously on file were

cancelled Basically the tariffs eliminated represented documents

under which no water transportation service was being performed

Shippers can now generally rely on the fact that where a tariff is

on file with the Commission the carrier is performing the service

Tariff filings totaling 154 712 pages were received in fiscal year

1966 These included new and initial tariffs and amendments to

previously filed tariffs Of this number 156 were rejected for

failure to conform with statutory requirements andor the provisions

of General Order 13 Based upon averages established by a sur
vey the total tariff filings received during the year resulted in the

establishment of 198 56 new or initial rates and 285 710 rate

changes

Computer Processing of Freight Rates

The Commission inaugurated a pilot program for facilitating the

retrieval of freight rate data from the mass of approximately

3000 rate items filed by carriers under the law The pilot

project contemplates the application of electronic computer tech

nology to freight rate data retrieval and to the processing of shipping

documentation by shippers and carriers

Results to date fully support the conclusions of the feasibility

study conducted in fiscal year 1965 Discussions with shippers and

carriers point to significant potential benefits to be achieved when

the program becomes operational The tariff automation pilot

project is being continued in fiscal year 1967 The basic problem

remaining concerns incompatibility of commodity descriptions used

in ocean freight tariffs with those employed in the Census Bureau

Schedule B commodity classification code Methods are being

sought to achieve a more precise identification of commodities to

overcome differences in commodity descriptions as used

Liaison With Other Federal Agencies

The Commission continued its program of close liaison with other

US government agencies in an effort to insure that government

cargoes move in our foreign trade at non discriminatory rates

A significant accomplishment is the concerted action by the Com

mission and the Agency for International Development the Depart

ment of Agriculture and the Military Sea Transportation Service in

connection with surcharges at Vietnamese ports In the summer of

1965 various conferences and independent carriers serving the trade

between the United States and Vietnam established additional

charges to compensate for extraordinary expenses attendant with

operation in Vietnamese waters as a result of hostilities in that

country One of these charges was established as a war risk com

pensation charge initially at the level of 570 per ton Addition

ally a charge of 5825 per ton was established to offset vessel

detention as a result of congestion at Vietnamese ports Following

establishment of these charges the Commission dispatched letters to

the conferences and carriers relative to the circumstances which

19
caused their establishment and expressed concern in the matter At

that time the Commission was approached by the Agency for Inter

national Development which expressed concern over the additional

charges and asked for assistance in an effort to obtain reductions in

their levels After consultations by the agencies concerned the

Commission obtained from the conferences and certain independent

carriers certain cost data related to vessel operations in Vietnamese

waters After analyzing these data and other pertinent facts it was

decided to approach the conferences and their Americanflag mem

bers on an informal basis in the hope they would voluntarily effect

reductions without recourse to formal proceedings Staff members

of the Commission and the other agencies held meetings with the

conference chairmen and representatives of the carriers to present

the government case The conferences and carriers agreed to recon

sider the level of the additional charges and shortly thereafter re

duced the 750 war risk compensation charge to 50 Recently

following a reduction in war risk insurance premiums and Seaman s

bonus expenses the Commission dispatched letters to the conferences

and carriers suggesting a further decline in their war risk compen

sation charge As a result all of the conferences and most of the

independent carriers reduced the charge to 375 per ton This will

save the US government millions of dollars

Another example wherein reduced rates have effected considerable

savings to the government is in the movement of household goods by

the Department of State Early in 1966 the Department expressed

concern about differences in rates assessed the State Department and

the Department of Defense for movement of household goods The

areas of major concern involved the Far East Conference the Pacific

Westbound Conference and the North Atlantic Mediterranean

Freight Conference

After discussion with State Department representatives the Com

mission agreed that it would approach the conferences on behalf of

the Department in an attempt to encourage them to reduce the rates

on State Department shousehold goods to the same levels as rates

available to the military As a result the Far East Conference and

the Pacific Westbound Conference reduced rates on household goods

to approximate parity with that on military traffic The North At

lanticMediterranean Freight Conference was considering the matter

at the close of the fiscal year
There are additional trades wherein the State Department ex

presses concern over a disparate rate situation The Commission

will make every effort to assist the State Department in obtaining

proper relief

Special Permission Applications

During the year the Commission received 314 applications for

special permission to waive the SO day filing notice provisions set

forth in section 18b That section authorized the Commission to

do so in its discretion and for good cause Of the total applications

received 269 were granted 18 were denied and 27 were withdrawn

International Relations

The Federal Maritime Commission continued to be faced with a

number of international problems in connection with investigation

of rate disparities in the foreign trade and commerce of the United

States and in securing compliance with the Commission sorders

issued to implement the shipping statutes

During the period under review the Commission was represented

at several meetings in Europe The Chairman Commissioners Bar

rett and Day and the Managing Director attended meetings of the

Marine Transport Committee of the OECD in Paris to discuss con

tinuing problems on regulation of international shipping and the

USJapan trade route study The Chairman Commissioner Day

and the Managing Director also attended a meeting of European

shipowners in London to further discus regulation of international

shipping

Representatives of the Commission headed by the Chairman and

representatives of the Department of State held a meeting in Wash

ington DCwith the shipping attaches of the major European ship

ping countries and Japan regarding compliance by conferences

based abroad with the Commission sGeneral Order No 18 At the

close of the fiscal year the Commission was considering problems

involved in the USJapan rate study as well as compliance with the

Commission sGeneral Order No 18

The Government of Seden on May 13 1966 passed a decree

similar to the British and German 1 reported in 1965 report which

might be used to counteract actions by the Federal Maritime Com

mission under current legislation
Foreign Discriminations

The end of fiscal 1966 saw increased tendencies by foreign govern

ments to pass regulations or legislation to assist their own national

merchant marines While these measures were considered promo

tional by the various governments it appeared that their implementa

tion would discriminate against the operations of USshipping lines

New proposals for the unilateral allocation of cargo to their own

national lines were advanced by three governments The United

States through the Department of State is discussing these proposed

discriminations with the governments involved Action to imple

ment the proposals had not yet been taken at the close of fiscal 1966

Another matter being watched closely was the multilateral ship

ping convention proposed by the Latin American Free Trade Associa

tion whose members are the governments of LatinAmerican

countries with the purpose of developing the members merchant

fleets and to assure them increased participation in maritime traffic

While the United States generally favors such economic develop

ments the Federal Maritime Commission is carefully watching devel

opments to insure that USflag carriers are equitably treated in the

USLatin American trade
DOMESTIC OFFSHORE COMMERCE

The Commission regulates rates and practices of domestic off

shore common carriers by water serving the trades between con

tinental United States and Alaska Hawaii Puerto Rico Guam

American Samoa and the Virgin Islands pursuant to the provisions

of the Intercoastal Shipping Act of 1933 and the Shipping Act 1916

Regulatory Activity

Tariff Filings

The Intercoastal Shipping Act of 1933 requires that carriers

file with the Commission and keep open to public inspection sched

ules showing all the rates fares and charges for or in connection

with transportation between ports served in the domestic offshore

trades The Commission accepts or rejects tariff filings in accord

ance with the requirements of the statute and the Commission srules

and regulations

The Commission continued its practice of meeting with domestic

offshore water carriers shippers and representatives of the govern

ments of the domestic offshore areas to eliminate from tariffs the

causes of potential protests As a result only 17 cases culminated

in formal proceedings These informal negotiations eliminated an

estimated 38 proceedings representing substantial savings in time

and money both to the Commission and to the carriers and shippers

In fiscal year 1966 the Conunission received and examined 11998

pages of freight and passenger tariff filings rejected 493 tariff pages

and accepted the remainder Examination of the rates and other

tariff provisions contained in the accepted pages resulted in the

institution by the Commission of 17 formal proceedings placing

tariff matters under investigation andor suspension pending hear

ing and adjudication

1 PI
Special Permission Applications

Under the provisions of section 2 of the Intercoastal Shipping

Act 1933 no change may be made in tariff rates or provisions except

by publication filing and posting of new tariff schedules Such

changes become effective not earlier than 30 days after the date of

filing with the Commission However upon application of the

carrier the Commission may in its discretion and for good cause

shown allow changes to become effective upon less than 30 days

The Commission approved 138 special permission applications

denied 5 and 1 was withdrawn by the applicant

Carrier Agreements

Agreements between carriers in the domestic offshore trade are

subject to section 15 of the Shipping Act 1916 which requires that

such agreements be filed for approval before effectuation

Two carrier agreements were pending at the end of fiscal year

1965 Six agreements and ten modifications to existing carrier

agreements were filed with the Commission during fiscal year 1966

Each agreement andor modification was examined to determine

whether it would be unjust discriminatory or unfair as between

carriers shippers exporters importers or ports operate to the detri

ment of the commerce of the United States violate any of the provi

sions of the Shipping Act represented the true and complete under

standing of the parties and whether contrary to the public interest

Two of the agreements were withdrawn by the parties without formal

action of the Commission two were determined to be not subject to

section 15 one is pending further investigation the others were

approved

Special Studies

The fact gathering phase of a comprehensive study of the Alaska

Trade was completed during the fiscal year 1966 The purpose of

the study is to develop the economic and transportation data needed

by the Commission to evaluate the services rates and charges of

common carriers subject to the jurisdiction of the Commission
TERMINAL OPERATORS

The Commission is responsible for the regulation of the activities

of marine terminal operators pursuant to the provisions of the Ship

ping Act 1916 This entails the processing of terminal agreements

and policing and regulating terminal practices

In carrying out this responsibility the Commission in fiscal year

1966

1 Issued final rules in Docket No 875 General Order 15 re

quiring terminal operators to file tariffs and prescribing uniform

definitions of terminal services The effective date within which

terminal operators must comply with these rules was postponed in

definitely pending Court review requested by several railroads

2 Published on May 23 1966 a staff report in Factfinding In

vestigation No 4 North Atlantic Ports dealing with the Port of

Boston and completed hearings in Factfinding Investigation No 5

South Atlantic and Gulf Ports These investigations developed

facts for determining whether free time demurrage and storage prac

tices at terminals are fair and whether terminals discriminate against

truck traffic in favor of rail traffic

3 Instituted an investigation Docket No 669 to determine

whether Agreement No T1870 between the City of Long Beach

California and Sea Land of California Inc should be approved

modified or disapproved pursuant to section 15 of the Shipping Act

1916

4 Instituted an investigation Docket No 6633 to determine

whether certain modifications submitted by the New York Terminal

Conference relating to loading and unloading lighters free time

and demurrage sorting of inbound cargo and independent rate

fixing without tariff publication is consistent with sections 15 16 and

17 of the Shipping Act 1916

5 Instituted an investigation Docket No 6546 to determine

a whether truck loading and unloading rates of the New York
Terminal Conference constitute an undue or unreasonable prejudice

or disadvantage in violation of section 16 First or constitute unjust

or unreasonable practices in violation of section 17 and b whether

the conference agreement should be disapproved under section 15

6 Examined 4680 terminal tariff filings to determine whether

they were in conformity with the provisions of the Shipping Act

1916 or with an approved conference agreement to which the termi

nal may have been a party

7 Reviewed the minutes of 73 terminal conference meetings to

determine whether any action reflected therein was violative of the

Shipping Act

8 Reviewed 31 reports covering shippers requests and com

plaints submitted by ratemaking conferences in accordance with the

Commission sGeneral Order No 14

9 Received 49 informal complaints concerning the activities of

terminal operators or other persons subject to the Act compared

with 54 received during fiscal year 1965 Thirty complaints were

disposed of during the year and 76 complaints are pending Of the

76 pending complaints the majority are pending consideration under

formal proceedings now before the Commission 56 are the subject

of formal Dockets Nos 6511 6512 and 6514

10 Examined 177 terminal agreements filed pursuant to section

15 of the Shipping Act 1916 Ninetyone of these agreements were

determined not to be subject to section 15 59 were approved and 1

was withdrawn Twentysix were pending final action at the end of

the yeartwo being the subject of formal dockets
FREIGHT FORWARDING

The Commission licenses and regulates independent ocean freight

forwarders promulgates and enforces rules and regulations and

approves or disapproves agreements between licensed forwarders

pursuant to the provisions of the Shipping Act 1916

Licensing

The law authorized the Commission to issue licenses to those inde

pendent ocean freight forwarders found to be fit willing and able to

function as such As a consequence the Commission is required to

conduct sufficient investigation of each applicant to permit such a

finding to be made

At the beginning of fiscal year 1966 840 licenses had been issued

and there were 144 applications pending During the fiscal year

40 new application were received 63 licenses were issued 29 ap

plications were denied or withdrawn and 92 continued in process

Thirtytwo licenses issued previously were revoked

Agreements

Ocean freight forwarder frequently enter into joint working

agreements or cooperative working arrangements Such agreements

are filed for Commission approval pursuant to section 15 of the

Shipping Act 1916

At the beginning of the fiscal rear 349 agreements were pending

approval and an additional 667 were received during the year Of

this total 977 were approved and 39 were pending further review

at the end of the year 111 addition 19 previously approved agree

ments were terminated At the close of the year there were 4000

joint working agreements between ocean freight forwarders on file

with the Commission
Rulemaking Proceedings

Experience gained in the licensing and regulation of independent

ocean freight forwarders indicates a continuing need for revision

and amendment of the basic rules which establish a code of business

practices duties and obligations applicable to licensees These

rules are contained in General Order 4 as amended

Section 510 22aof this order prescribes a rule which prevents

any licensee from charging or collecting ocean freight compensation

in the event it requests the carrier of the shipment or its agent to per

form ocean freight forwarding services unless no other licensee is

willing and able to perform such services During the fiscal year

the Commission served notice of its intent to amend this section so as

to prescribe a procedure for allowing port wide exemptions from the

operation of said rule to carrier agents who also operate as licensed

independent ocean freight forwarders On June 13 1966 the Com

mission heard oral argument on this proposed revision and final

action was pending at the close of the year

A comprehensive review of actual operating experience pursuant

to the regulations prescribed in General Order 4 indicated that cer

tain modifications andor optional alternatives were warranted

Accordingly during the fiscal year the Commission proposed addi

tional revisions Such proposals would amend General Order 4 to

1 allow oceangoing common carriers to perform ocean freight

forwarding services on cargo carried on its own bill of lading free of

charge provided the tariff of the carrier so indicates this practice

2 provide for Commission approval of branch offices of licenses

3 include a time limit within which a licensee would be required

to pay over to carriers freight monies advanced by its principal 4

provide for the filing of rate schedules for accessorial services ren

dered by licensees 5 prohibit the payment of ocean freight com

pensation to a licensee whose name appears on an ocean bill of lading

as shipper or as agent for an undisclosed principal and 6 require

carriers to specify in their tariffs rates of ocean freight compensa

tion to be paid to licensees
FINANCIAL AND ECONOMIC

ANALYSIS

Transport Economics

The Commission sefforts in the field of economics have been

devoted primarily to a series of ratelevel studies designed to dis

cover and exhibit the presence of disparate rate structures in given

trade routes

An investigation by the Commission is presently in hearing in

Docket 6545an investigation of the ocean rate structures in the

US North Atlantic United Kingdom and Elie tradeto determine

inter alia whether the outbound rate structure or any individual

outbound rate may be effectively higher than the inbound rate struc

ture or any individual reciprocal inbound rate and if so whether

the disparate rate structure or individual rate disparities may be

detrimental to the commerce of the United States contrary to the

public interest or otherwise in violation of the Shipping Act 1916

Thus far in addition to the North AtlanticUKrate level analy

sis Trade Route No 5 analy have been prepared or are in

process for a number of other trade areas

Financial Analysis

During the fiscal year 1966 financial reports were received from

carriers in the domestic offshore trades of which 34 were submitted

under provisions of General Order 5 and 32 under provisions of

General Order 11 These reports reflect respectively the financial

condition of the carrier as a corporate entity and the results of its

operations in the trades subject to the Commission sregulations

During April 1966 the Commission published two notices of pro

posed rule making covering 1 audits and auditing procedures

and 2 availability to the public of the reports filed under the terms
of General Order 11 The former results from the decision of the

US Court of Appeals in Alcoa Steamship Co Inc v Federal Mari

time Commission and United States of America DCCircuit Ap

15 1965

Current information concerning the assets employed and the re

sults of operations of the carriers in the domestic offshore trades

facilitates the review of changes in tariff rates and has resulted in

eliminating some investigations and suspensions The gener I

acceptance of the principles of General Order 11 facilitates the con

clusion of general rate cases by reducing the number of accounting

differences between the participating parties
ENFORCEMENT AND COMPLIANCE

Informal Complaints

The Commission is responsible for administering the regulatory

statutes which affect the relationships among common carriers by

water engaged in transportation in the foreign commerce of the

United States as well as the relationships between those carriers and

the shipping public Many exporters importers carriers and others

in industry bring before the Commission for resolution problems

involving the adjustment of freight rates established by steamship

lines and conferences possible discriminatory treatment improper

or incorrect application of freight rates or rules disputes as to proper

tariff classification of shipments operation of common carrier serv

ices without appropriate tariff publication and filing with the

Commission

While the Commission is not authorized to set minimum or maxi

mum rates and charges in the foreign commerce of the United States

and cannot suspend such a rate it can investigate and refuse to per

mit rates or practices which are unjustly discriminatory unduly

preferential or detrimental to the commerce of the United States

The Commission has implemented an informal complaint program

in an effort to insure that shippers are afforded fair and reasonable

rate treatment from carriers

During the past year the Commission has placed greater emphasis

on bringing together for facetoface discussion the representatives

of carriers and shippers or the persons in controversy who have rate

and other shipping problems In this way many problems have

been disposed of to the satisfaction of the parties concerned without

resort to expensive and protracted formal proceedings The Com

mission has thus been instrumental in assisting exporters in resolving

with shipping conferences or carriers their ocean freight rate prob

lems in connection with a wide range of commodities
Information developed through non adjudicatory factfinding in

vestigation disclosed that there are many exporters and potential

exporters who do not have sufficient basic knowledge of export pro

cedures rate adjustment procedures and steamship conference

functions In an attempt to alleviate this condition the Commission

in conjunction with the Department of Commerce prepared and pub

lished a pamphlet entitled Ocean Freight Rates Guidelines for

Shippers This publication will assist exporters and importers in

presenting requests for rate reductions to carriers and conferences

and acquaint them with the further steps which may be taken in the

event of unsatisfactory consideration

Increased effectiveness in informal complaint techniques reflects

this fiscal year in a significant increase in proceedings settled to

the satisfaction of the shipper

The Commission considered 628 informal complaints and con

cluded its findings and actions with respect to 439 cases Seventy

two of the pending cases are involved in formal docketed proceedings

The types of complaints and actions taken are

Rate Complaints Foreign Commerce

The Commission considered 391 informal complaints relating to

rates and shipping problems in the foreign commerce of the United

States Of this number investigation was completed and action

taken with respect to 319 Ocean freight rate reductions or other

action favorable to the shipper or other complainant were obtained

in 36 cases In 255 cases inquiry and investigation disclosed that

there was no basis on which to obtain settlement favorable to the

complainant or the matters were not within the jurisdiction of the

Commission or the issues had been satisfactorily settled by the par

ties Complaints in 10 of the cases were withdrawn Investigation

disclosed that 18 of the complaints involved violations of the Ship

ping Act 1916 and were referred to the Department of Justice for

prosecution At year end 72 cases were pending completion of

investigation or other handling for final disposition 16 of which

are subjects of formal investigation in docketed proceedings

Other ComplaintsForeign Regulation

In addition to the informal complaints discussed in the preceding

paragraph the Commission had before it for consideration in fiscal
year 1966 41 additional complaints arising directly from possible

violations under section 14bdual rate contract systems and under

section 15 possible violations of approved agreements and opera

tion under alleged unfiled and unapproved agreements

Investigation was completed on 21 of these complaints Four

of these were docketed for formal investigatory proceedings in

volving overland and OCP rates and operations under invalid dual

rate contracts two covered suspensions from dual rate contracts for

shipper violations two involved conference agency matters four

concerned possible violations for failure to file appropriate agree

ment modifications and for operations under unfiled agreements

nine covered travel agency matters under passenger conference

agreements

Informal Complaints Domestic Regulation

The Commission considered 196 informal complaints involving

claims for loss or damage freight rates tariff filing violations

unfiled section 15 agreements unjust and unfair discriminatory

practices of offshore carriers terminal operators and freight for

warders Thirtyone of these complaints were found not to involve

violation of the shipping statutes In 8 cases a rate adjustment

was effected which benefited the shipper 58 other cases were resolved

through adjustments between the parties or other corrective action

2 were referred to the Department of Justice 56 are the subject of

docketed proceedings and 41 were pending further investigation by

the staff on June 30 1966

Other Compliance Action

During fiscal year 1966 the Commission expanded its compliance

program in the domestic offshore trades The program is divided

into two parts Part I relates to general activities of water carriers

subject to the shipping statutes and is intended to 1 acquaint the

shipping public as well as the carriers with the provisions of the

shipping statutes and rules and regulations of the Commission and

2 detect and investigate instances of failure to comply with the

statutes and rules of regulation of the Commission Part II of the

program is a container inspection program instituted to prevent or

inhibit unlawful practices in weighing measuring and describing an

article transported in containers
Factfinding Proceedings

During the past year the Commission completed hearings in Fact

finding Investigation No 5 Terminal Practices at South Atlantic and

Gulf Portsfrom but excluding Hampton Roads Va to Browns

ville Tex made its report on Project Rates Factfinding Investi

gation No 8 Project Rates and Practices Related thereto and that

portion of its report in Factfinding Investigation No 4 Termina

Practices at North Atlantic PortsHampton Roads Va to Sears

port Me dealing with the Port of Boston Hearings were con

tinned in the general investigation of conference rate structures

Factfinding Investigation No 6 The Effects of Steamship Confer

ence Organization Procedure Rules Regulations and Practices upon

the Foreign Commerce of the United States including testimony of

conferences headquartered in New York and New Orleans Hear

ings dealing with west coast conferences will commence during the

next year

Field Investigations

Fiscal year 1966 saw certain changes in emphasis in the Commis

sion investigative program While the previous year required ex

tensive activity in connection with the investigation of ocean freight

forwarder applicants the current year saw the initiation of the con

tainer inspection program and a reemphasis of compliance activities

relating to malpractices generally

Investigative activities resulted in fines andor settlements for

violations of the shipping statutes in the amount of 6650 At

the close of the fiscal year there remained pending in the Federal

Courts or with the Department of Justice for appropriate criminal

or civil action 46 additional cases developed through investigation

During the year 443 new investigative cases were opened and 391

investigations were completed The pending active case load at the

year send was 342

Formal Proceedings

The Commission on its own motion instituted 56 proceedings in

volving various regulatory matters hi addition nine complaint

cases were instituted Seventy three cases were concluded either
through Commission decision satisfaction of complaint or dismissal

of the proceedings

Compliance with the Commission sgeneral orders by the confer

ences serving the United States trades was effectuated by the institu

tion of 13 show cause proceedings The majority of these

proceedings were concluded by the conferences complying with the

Commission sgeneral orders without the need for a hearing Sur

veillance of the offshore domestic trades rates structures was con

tinued by the institution of nine formal proceedings deviation from

the standard dual rate contracts previously approved by the Com

mission was the subject matter of five formal proceedings

The status of the Commission docket in formal proceedings is

indicated below

New Pending

Beginning lockets and Concluded beginning

fiscal remanded fiscal fiscal

Investigations 1966 cases 1966 1967

Section 15 19 24 23 20

Sections 14 16 170 2 8 4

Section 18b5 0 2 2 2

Complaints 18 9 12 15

Dual rate contracts 1 6 1 3

Freight forwarder licens

ing 4 8 7 5

Rate proceedings 8 10 11 7

Rulemaking 7 6 1 9

Total 69 67 71 65

This column has been adjusted from the fourth annual report to include com

plaint case and cases remanded by the Courts to the Commission for reconsideration
PROCEEDINGS BEFORE

HEARING EXAMINERS AND

FEDERAL MARITIME COMMISSION

At the beginning of the fiscal year 133 proceedings were pending

before Hearing Examiners and there were added during the fiscal

year 52 cases 2 cases were remanded for further proceeding making

a total of 54 proceedings The Examiners conducted 19 hearings

and issued 29 initial decisions one decision embraced 90 special

docket applications

In proceedings other than rulemaking the Commission heard 22

oral arguments involving as many proceedings and issued 68 deci

sions involving 177 proceedings Of these proceedings 19 were

discontinued or dismissed without report two were remanded to

Examiners and one was referred to the Chief Examiner for eviden

tiary hearing At the end of the fiscal year there were 15 proceed

ings pending decision by the Commission

Final Decisions of the Commission

Docket No 872Joint Agreement Between Member Lines of Far East

Conference and the Member Lines of Pacific Westbound Conference It

was determined that 1 respondents supplementary agreements affecting

overland rates concurrence procedures and placing of items on the initiatil e

list constituted unapproved agreements required tobe filed with the Commis

sion pursuant to section 15 of the Act 2 respondents past conduct in

regard to their treatment of Carnation Company was in violation of section

16 of the Act 3 respondents did not surrender their right of independent

action by reason of a secret agreement and 4 the record was insufficient

to warrant disapproval of respondents agreement

Docket No 890 In the Matter of Unapproved Section 15 Agreements

SpanishPortuguese Trade Docket No 891 i the Mauer of Rates Charges

and Practices of Carriers Engaged in the Trade Between United States and

SpainPortugal It was determined that respondents had entered into agree
ments and understandings which were not filed with or approved by the

Commission in violation of section 15 of the Act

Docket No 971New Orleans Steamship Association v Gunge Corpora

tion and Southern Stevedoring Company Inc The complaint was dismissed

on the ground that the operations of respondents were not subject to the

jurisdiction of the Commission

Docket No 996Philippine Merchants Steamship Co Inc v Cargill

Incorporated It was determined that 1 the agreement between respondent

and Consolidated Stevedoring Company for division of net profits was a

cooperative working arrangement for the apportionment of earnings required

to be filed with the Commission pursuant to section 15 of the Act and 2

respondent sassessment of weighing charges against complainant was an

unjust and unreasonable practice contrary to section 17 of the Act Proceed

ing remanded to Examiner for the taking of additional evidence and for a

determination of the amount of reparations due for any injury caused by

the improperly imposed charges

Docket No 1066Alcoa Steamship Co Inc General Increases in Rates

proposed

in the Atlantic

rate increases

Gulf Puerto

were

Rico

unjust

Trade

and unreasonable

It was determined

to the

that

extent

respondent s

that they

provided a rate of return exceeding 10 percent on a rate base computed by

means of the ton mile method of allocation of vessel expenses and

depreciation

Docket No 1082Thatcher Glass Manufacturing Go Inc v SeaLand

Service Inc Puerto Rican Division The complaint was dismissed on the

ground that respondents minimum rate of 5500 per trailer load for trans

portation of glass bottles from Jacksonville to Puerto Rico via Port Newark

was not shown to be unjust and unreasonable nor subject shippers to undue

or unreasonable prejudice or disadvantage

Docket No 108 of Wharfage Charges on Bulk Grain

at Pacific Coast Ports It was determined that assessment of wharfage

charges on bulk grain moving through marine terminal elevators on the

Pacific Coast was not an unjust or unreasonable practice under section

17 of the Act

Docket No 1086 Stockton Port District v Pacific Westbound Conference

et al It was determined that respondents equalization rules and practices

were unjustly discriminatory and unfair to terminal ports of the San Fran

cisco Bay area to the extent that the provided for equalization of inland

transportation charges against such ports on cargo loaded at Los Angeles

and Long Beach 111 respondents filed equalization rules to the extent

that they provide for equalization of inland transportation charges between

San Francisco Bay area ports were not in violation of law and 13 Pacific

Westbound Conference and its member lines were not in compliance with

section 18b of the Act since their equalization rule on citrus fruit orig

inating in Southern California was not filed with the Commission

2l
Docket No 1089 Volkswagenwerk Aktiengesellschaft v Marine Terminals

Corporation et al The complaint was dismissed on the grounds that 1

respondents agreement with others to contribute to a fund pursuant to a

union agreement was not subject to section 15 of the Act and 2 responc

ents inclusion of their contribution in rates charged to complainant was

not in violation of sections 16 and 17 of the Act

Docket No 1095Agreement No 15021 Trans Pacific Freight Confer

ence of Japan and Agreement 310317 JapanAtlantic and Gulf Freight

Conference The selfpolicing systems of respondent conferences were

approved pursuant to section 15 of the Act

Docket No 1100 Sub 1Agreement 9218 Between the Member Lines

of the North Atlantic Continental Freight Conference and the Continentcl

North Atlantic Westbound Freight Conference On reconsideration it was

determined that Agreement 9218 which provided that a member line of

one conference operating within the trading range of the other conference

must be a member of both conferences was contrary to section 15 of the

Act

Docket No 1114 Iron and Steel Rates Export Import It was deter

mined that respondents rates on iron and steel in the trades under investi

gation were not shown to be contrary to sections 15 17 or 18b5 of the

Act

Docket No 1136 Investigation of Increased Sugar Rate in the Atlantic

GulfPuerto Rico Trade It was determined that the increased rate of Lykee

Bros Steamship Company on refined bagged sugar was not unjust r

unreasonable

Docket No 1137 Reduction of Wharfage Charges Port of Oakland The

Commission affirmed the decision of the Examiner to discontinue the pro

ceeding inasmuch as Oakland had cancelled the tariff item which had given

rise to this proceeding and thus the issues had become moot

Docket No 1153Truck and Lighter Loading and Unloading Practice

at New York Harbor It was determined that certain rules regulations

and practices of the New York Terminal Conference with respect to load

ing and unloading services provided for trucks and lighters were contrary

to section 16 First and section 17 of the Act

Docket No 1159In the Matter of Agreement No 149 and Clause 11

of Agreement No 14 as Amended and Clause 10 of Agreement No 1420

Trans Pacific Freight Conference Hong Kong Clause 10 of Agreemeni

No 1420 providing for the exclusive services of shipping agents was ap

proved pursuant to section 15 of the Act

Docket No 1167Reduced Rates on Automobiles Atlantic Coast Port

to Puerto Rico On remand the Commission removed the 1 cent differ

ential between the rates of South Atlantic Caribbean Line and TMT Trailer

Ferry for carriage of automobiles between Miami Florida and San Juan

Puerto Rico and fixed rates for both carriers at 35 cents inclusive of all

charges
Docket No 1170Firestone International Company a Division of the

Firestone Tire ce Rubber Company v Far East Conference et al The

complaint was dismissed on the ground that the conduct of respondents in

asserting breach of their dual rate contract and demanding damages therefor

was not in violation of section 14 Third and section 14b of the Act

Docket No 1171 Outbound Rates Affecting the Exportation of High

Pressure Boilers Utility Type Parts and Related Structural Components

It was determined that respondent conferences rates on utilitytype boilers

and components were not in violation of sections 17 and 18 of the Act and

respondents conference agreements by reason of maintenance of such rates

did not require disapproval or modification pursuant to section 15 of the

Act

Docket No 1185Ocean Freight Consultants Inc v The Bank Line

Limited The Commission granted reparations to complainant on the

ground that respondent charged a higher rate than that on file in its tariff

in violation of section 18b3 of the Act

Docket No 1187Reduced Rates on Machinery and Tractors from United

States Atlantic Ports to Ports in Puerto Rico Docket No 1187 Sub 1

Further Reduction in Rates on Machinery and Tractors from United States

Ports to Ports in Puerto Rico The Commission 1 fixed the rates of the

North Atlantic carriers at 50 cents upon a finding that such rates were not

unjust or unreasonable 21 fixed the rates of SACAL and TMT at 18 cents

except as to road scrapers upon a finding that their respective 13 cents and

37 cents rates mere in iolation of section 16 First of the Act and 31 found

the 28 cents rates on road scrapers of South Atlantic and Caribbean Line

and TMT Trailer Ferry just or reasonable

Docket No 1203 Application for Freight Forwarding LicenseYork Ship

ping Corporation Application for license was denied on the ground that

applicant as an employee of a firm engaged in shipping in foreign trade

was not an independent ocean freight forwarder within the meaning of the

Act

Docket No 1205 Sea Land Service Inc v South Atlantic and Caribbean

Line Inc The Commission ordered respondents to cease and desist from

its practice of offering substituted service at Jacksonville Florida on the

ground that such service unduh prejudiced the port of Jacksonville and

unduly preferred the port of Miami Florida in iolation of section 16 First

of the Act

Docket No 1209SacramentoYolo Port District v Fred F Noonan

Company Inc Upon petition it was declared that wharfage charges for

loading of bulk rice from offshore side of vessel did not lawfully accrue

against respondent where complainants definition of wharfage restricted

application to cargo passed on over under or through the wharf

Docket No 1210Continental Yut Company v Pam cCoast River Plate

Brazil Conference et al Upon petition it was declared that respondents

additional assessment of charges for carriage of Brazil nuts for use in pro
rooting their sale was an implementation of an agreement required to be

filed pursuant to section 15 of the Act

Docket No 1211 Independent Ocean Freight Forwarder License Ao

542Aetna Forwarding Company Inc The Commission adopted the de

cision of the Examiner and revoked the license of Aetna Forwarding Com

pany on the grounds that it was not financially able and did not furnish the

bond required by Commission regulation

Docket No 1212Mediterranean Pools Investigation It was determined

that the various agreements under investigation were not contrary to section

15 of the Act and the agreements were approved subject to certain

modifications

Docket No 1216 Activities Tariff Filing Practices and Carrier Status 7f

Containerships Inc It was determined that respondent by reason of its

activities and practices was a common carrier by water within the meaning

of the Shipping Act 1916 and the Intercoastal Shipping Act 1933

Docket No 1217 Investigation of Free Time Practices at Port of San

Diego It was determined that 10 days for outbound and 7 days for inbour d

cargo exclusive of Saturdays Sundays and holidays was a reasonable

amount of free time to be offered at San Diego

Docket No 656Pacific Westbound Conference Amendment to Dual Rate

Contract The Commission denied the application of respondent to amend

the charter exclusion clause of its dual rate contract on the ground that such

amendment would be contrary to section 14b of the Act

Docket No 6S7Imposition of Surcharge at United States Atlantic and

Gulf Ports on Cargo Moving Between Said Ports and Latin American Ports

It was determined that the surcharge imposed by respondents was in con

formance with their dual rate contract and not otherwise unlawful

Docket No 659Agreement No T1768 Terminal Lease Agreement

Agreement No T1768 providing for preferential assignment of marine

terminal property from the City of Oakland to Sea Land of California was

approved pursuant to section 15 of the Act subject to certain modifications

Docket No 6527MarseillesNorth Atlantic USAFreight Conference

Exclusive Patronage Dual Rate System and Contract Respondents prc

posed dual rate system and contract form were approved pursuant to section

14bof the Act subject to modification

Docket No 6528Admission to Conference Membership Pacific Coast

European Conference It was determined that respondents conference agree

ment did not comply with the provisions of section 15 of the Act and Com

mission General Order 9 relating to admission withdrawal and expulsion

of members and respondents were directed to modify their agreement in thii

respect

Docket No 6529Imposition of Surcharge by the Far East Conference

at Searsport Maine It was determined that imposition of the surcharge

was contrary to the requirements of section 15 of the Act
Docket No 6528IsraelUS North Atlantic Ports Westbound Freight

Conference Exclusive Patronage Dual Rate System and Contract The Commission adopted the decision of the Examiner and approved the respond

ents proposed dual rate system and form of contract pursuant to section 14b

of the Act

Docket No 6542Agreement 8765Order to Show Cause The Com

mission cancelled Agreement 8765 pursuant to section 15 of the Act on the

ground that the circumstances warranting its original approval had ceased

to exist

Docket No 661Lomen Commercial CompanyIncreased Rates in the

Northwest Bering Sea Area of Alaska The Commission adopted the de

cision of the Examiner in finding that respondent srates were just reasonable

and otherwise lawful

Docket No 6612Approved Scope of Trades Covered by Agreement 7840

As Amended Atlantic Passenger Steamship Conference It was determined

that respondents were not required to delete that portion of their agreement

dealing with carriage of passengers between Europe and Canada

The Commission granted application made under Rule 6b of the

Commission sRules of Practice and Procedure authorizing payment of

reparation or waiver of collection of undercharges in the following pro

ceeding Special Docket No 396 The Commission denied applications

under Rule 61b i in the following proceedings Special Docket Nos 269277

279281 283289 291 311 314363 368 373 376 379 380 381 382

383389 390394 395 397 398 and 400

Decisions of Hearing Examiners

In proceedings not yet decided by Commission

Docket No 916iti estigation of Practices Operations Actions and

Agreements West Coast of Italy Sicilian and Adriatic PortsNorth Atlantic

Range Trade Respondents were found not to have made unlawful deferred

predecessor

rebates entered

given

into

undue

agreements

or unreasonable

required to

preference

be filed with

or advantage

the Commission s

to par

ticular persons and allowed persons to obtain transportation for property

at Tess than the regular rates or charges by unjust or unfair devices or means

If necessan alternatively it was found that certain events and practices in

Italy were not shown to have had any direct and material effect upon the

foreign commerce of the United States and that jurisdiction is lacking

Docket No 1208 nthe Matter of Agr eement 9229 Italy France Spain

and Portugal North Pacific Freight Pool and Agreement 8090 as amended

Mediterranean North Pacific Coast Freight Conference It was determined

that the Italy France Spain and Portugal North Pacific Freight Pool Agree

ment No 9229 as amended to date and if further modified in accordance

with this decision would not be unjustly discriminatory or unfair as between

carriers shippers exporters importers or ports or between exporters from
the United States and their foreign competitors or to he detrimental to the

commerce of the United States or contrary to the public interest or other

wise in violation of the Shipping Act 1916 The agreement was approved

It was further determined that the parties to the Mediterranean North Pa

cific Coast Freight Conference Agreement No 8090 had not adequately

policed their obligations under the said agreement but considering the sur

rounding circumstances it was not necessary to disapprove the Agreement

on that account The proposed self policing system submitted by the Con

ference should be approved as it will provide adequate policing of the obli

gations of the parties as required by section 15 of the Shipping Act 1916

and the proposed amendment of Agreement 8090 which will prohibit the

Conference members or their agents from acting as agents for nonmember

carriers will not violate the standards of section 15 and was approved

Docket No 651Matson Navigation CompanyReduced Rates on Flour

from Pacific Coast Ports to Hawaii Respondent a common carrier in the

carriage of flour from Pacific Coast Ports to Hawaii is in competition with

an unregulated barge line carrying wheat Respondent sreduced rate on

flour found to be compensatory and justified as a means of meeting barge

line competition

Docket No 6S17Transshipment and Apportionment Agreements from

Indonesian Ports to US Atlantic and Gulf Ports The IndonesianUS

trade involving throughcargo shipped from an Indonesian outport trans

shipped at an Indonesian baseport and oncarried to a US port by JNYRA

members Second Carriers intended by all parties concerned with the

movement to be cargo destined for the United States was found to be cargo

transported between the United States and a foreign country in the import

trade though carried from the outport to the baseport by an Indonesian

carrier First Carrier transporting cargo only between and among Indone

sian outports and baseports Agreement No 9222 executed by all the

First Carriers and Second Carriers individually all the Second Carriers

being members of JNYRA subject to the Act involving an arrangement for

the exclusive transshipment of IndonesianUS through cargo was found

to be an agreement between a common carrier subject to the Act and another

common carrier subject to the Act within the meaning of section 15 of the

Act and accordingly must be filed It was further found under these cir

cumstances that it is neither essential nor necessary to determine that a

First Carrier that also executed the agreement is a common carrier subject

to the Act where that carrier is wholly owned by Indonesia its vessels never

touch the United States it has no representative in the United States and

it plys the trade only between and among Indonesian outports and baseports

It was determined that Agreement No 9222 if modified would not be

unjustly discriminatory or unfair as between carriers shippers exporters

importers or ports or between exporters from the United States and their
foreign competitors detrimental to the commerce of the United States or

contrary to the public interest or otherwise in violation of the Shipping Act

1916 The IndonesianUStrade transshipped at SingaporePenang hav

ing ceased Agreement No 9202 covering that trade was disapproved as not

being in the public interest without prejudice to refiling when the trade

resumes or there is immediate possibility of its resumption

Agreements to enter into Agreement No 9222 the latter a section 15

agreement were found not to be subject to section 15 of the Act Assum

ing such agreements to enter are subject to section 15 it would serve no

useful regulatory purpose to require filing

No showing made that Agreements No 9222 and No 9202 did not repre

sent the entire agreement of the parties or that they have been carried out

in whole or in part without approval of the Commission as required by

Section 15

Docket No 6519Transshipment and Through Billing Arrangement

between East Coast Ports of South Thailand and US Atlantic and Gulf

Ports It was found that Agreement No 9311 between two groups of

carriers providing for transshipment of rubber at Singapore is subject to

section 15 of the Shipping Act 1916 and that inasmuch as the proposed

transshipment agreement did not violate any of the standards of section 15

it was approved

Docket No 664Independent Ocean Freight Forwarder License Appli

cation Jmes 1 Boyle a Co San Francisco California and Independent

Ocean Freight Forwarder License a 480WorldWide Services Inc

Jamaica New York It was determined that the applicant for freight for

warder license Boyle was not unfit for licensing by reason of unlawful

operation in view of the fact that applicant in good faith believed the oper

ation lawful and other extenuating circumstance Proceeding as to World

Wide was dismissed

Docket No 6617Independent Ocean Freight Forwarder License Appli

cation 552Heskel Saleh d 6 a Eastern Forwarding Service An

application by holder of grandfather right for license as independent

freight forwarder granted upon condition that applicant refrain from col

lecting unearned commissions from carriers and sever all use of office equip

ment and emploes of shipper and establish an independent office

Special Docket No 399 Member Lines of the Java Pacific Rate Agree

ment v Numerous Shippers in the Trade from Indonesia Exclusive of Ports

on the East Coast of Sumatra betueen Langsa and Indragiri both inclusive

to Pacific Coast Ports of the United States during 1964 Application under

Rule 61 b 1 for leave to waive collection of undercharges was denied on find

ing that no undercharges were properly collectible upon the facts shown

Examiners also issued decisions in Docket Nos 1095 1100111 1137

1153 1185 1205 1209 1210 1211 1212 1217 657 659 6527 6538

661 and Special Docket Nos 269 through 277 279 through 281 283
through 289 291 through 311 314 through 363 382 398 and 400 described

above under Final Decisions of the Commission

Pending Proceedings

At the close of the fiscal year there were 43 pending proceedings of whit h

28 were initiated on the Commission sown motion and the remainder were

instituted by formal complaints and applications filed by conferences trade

associations shippers individual steamship operators and others
RULEMAKING PROCEEDINGS

Six rulemaking proceedings were instituted in fiscal year 1966

Docket No 6533Small Claims Procedures Proposed rules published

August 27 1965

Docket No 6537Special Permission Requirements for Filing Project

Rates Revised proposed rules published June 24 1966

Docket No 662Practices of Independent Ocean Freight Forwarders

Ocean Freight Brokers and Oceangoing Common Carriers Operations

of Carrier Agents Proposed rules published January 20 1966

Docket No 6619Audits and Auditing Procedures Proposed rules

published April 8 1966

Docket No 6620Reports of Rate Base and Income Account by Vessel

Operating Common Carriers in the Domestic Offshore Trade Proposed

rules published April 8 1966

Docket No 6631Practices of Independent Ocean Freight Forwarders

Ocean Freight Brokers and Oceangoint Common Carriers General revi

sion Proposed rules published Ma 6 1966

There were published during the fiscal ear General Order No 15

Filing of Tariffs by Terminal Operators General Order No 17Time for

Filing and Commenting on Certain Agreements General Order No 18

Filing of Minutes and Other Information In Parties to section 15 agreements
LITIGATION

Seven petitions to review Federal Maritime Commission ordere

were pending in the various United States Courts of Appeals at the

beginning of the fiscal year During the year 24 petitions to review

were filed in the Courts of Appeals and 1 case was reopened as a

result of action by the Supreme Court Fifteen cases were disposed

of during the fiscal year leaving seventeen cases submitted for deci

sion or pending briefing on June 30 1966

One petition for a writ of certiorari was filed with the Supreme

Court during the fiscal year the Commission opposed the petition

and it was denied Briefs on the merits were filed in two other cases

which were disposed of by the Supreme Court during the term

ending in June 1966

Some of the more important cases decided in the Supreme Court

and the Courts of Appeals were

International Packers Ltd v Federal Maritime Commission 356 F 2d

808 DCCir 1966 which affirmed an order of the Commission upholding

the legality of a surcharge imposed because of a longshoremen sstrike

Rejecting the shipper sclaims that the surcharge was illegal because it con

stituted a charge not expressly set out in the carrier stariff and that the bill

of lading rule under which the surcharge was imposed was not properly a

part of the tariff the Court concluded This is clearly a question the reso

lution of which must be left primarily to the agency with expert experience

in the everyday realities of the shipping industry and to which Congress

has entrusted primary responsibility for effectuating the purposes of the

Act

Alaska Steamship Company v Federal Maritime Commission 356 F 2d

59 9th Cir 1966 which affirmed an order of the Commission denying a

petition to reopen a rate case which had been pending before the Commis

sion since 1961 The Court held that the Commission had broad discretion

in disposing of petitions to reopen evidentiary records and that there was

no abuse of the discretion in this case

Carnation Company v Pacific Westbound Conference 383 US 213

1966 which reversed the judgment of the United States Court of Appeals
for the Ninth Circuit and held that an action for treble damages under the

antitrust laws should be stayed pending a determination by the Commission

as to the legality under the Shipping Act of the Conferences actions The

Ninth Circuit Court of Appeals had affirmed a judgment of the District Court

dismissing the treble damage action The Supreme Court also held that

actions taken pursuant to agreements which have not been filed with or

approved by the Commission are subject to the treble damage remedies

provided by the antitrust laws

Persian Guff Outward Freight Conference v Federal Maritime Commis

sion 361 F 2d 80 DC Cir 1966 which affirmed a Commission order

approving the operations of two steamship conferences in the same general

trading area The Court held that

it seems equally clear that the right of the Commission to approve

more than one conference in circumstances like those now before us was

not prohibited In this situation for the court to prohibit it would do what

Congress should do if it is to be done at all

Consolo v Federal Maritime Commission 383 US 607 19661 which

reversed the judgment of the US Court of Appeals for the District of

Columbia Circuit and held that it was not inequitable for the Commission to

award reparations to Consolo a shipper of bananas Consolo was denied

shipping space for the carriage of bananas between 1957 and 1959 and

the carrier had contended before the Commission and the Court of Appeals

that an award of reparations was inequitable in the circumstances The

Supreme Court also reaffirmed the principle that Commission orders must be

affirmed if they are supported bN uhstantial idence

Pacific Coast European Conference et al c Federal Maritime Commission

359 F 2d 16 9th Cir 1966 which held that the Commission could utilize

its pow ers under both sections 21 and 27 of the Shipping Act 1916 in con

ducting investigations The Court stated

The et clues not in a tvav limit the purpose of a section 21 order

Obviously it can relate only to natters falling within the jurisdiction of the

Commission The pending matter is clearly of that character

Alaska Steamship Company N Federal Maritime Commission 362 F 2d

406 9th Cir 19661 which held that in the event the Commission decides to

suspend newly filed rates under the provisions of the Intercoastal Shipping

ct 1933 the orders reflecting the Commissions action must be ser ed prior

to the effective date of the rates The Court also held that telegrams notifying

the carrier of rate suspensions did not comply with the Acts requirement that

the carrier be apprised of the suspension by being furnished with a written

statement of the Commission sreason for the suspension

LS Atlantic d Gulf 1ns tabu Vete Zealand Confere v Federal Mari

time Commission 1 t sited States Court of Appeals District of Columbia Cir

cuit June 30 1966 which tmantled to the Commission a proceeding in

which the Commission had sanctioned a single conference administration for

two groups of carriers serving different trading areas The Commission
however disapproved 1 the use of a single dual rate contract for both

trades 2 a veto power held by one section of the conference over the rates

of the other section and 3 a three quarter voting rule to be used by one sec

tion The Court affirmed the Commission sdisapproval of the use of a single

dual rate contract but it remanded the other two issues to the Commission for

further findings

In addition to the conduct of the Commission sappellate litigation the

Commission slegal staff instituted five suits to compel compliance with Com

mission orders or subpoenas and concluded one suit pending from the fiscal

year 1965 Commission counsel also actively participated in three appeals

from District Court decisions involving Commission orders which were

briefed and argued during the fiscal year

Two important cases involving the Commission ssubpoena powers were

decided by the United States District Courts during the fiscal year In

Federal Maritime Commission v A T DeSrnedt 249 F Supp 496 1966

the US District Court for the Southern District of New York ordered com

pliance with certain subpoenas issued by a Commission hearing examiner in

a complaint case The Court stated

We conclude that to compel them respondents to produce evidence

wherever located relevant and necessary to a determination of the charges

made against them of violation of a statute under which they enjoy certain

immunities is clearly within the power of the Commission

Similarly in Federal Maritime Commission v Transoceanic Terminal

Corp et al 252 F Supp 743 1966 theUS District Court for the Northern

District of Illinois Eastern Division ordered obedience to Commission sub

poenas The Court held that the Commission could proceed to hearing on

an application for enforcement of subpoenas by an order to show cause rather

than by complaint and answer

The subpoena powers given the Commission by Congress are vital to the

investigatory responsibilities prescribed by the Shipping Act Frustration

of this power is unnecessary and unwarranted and the procedure employed

in this case is the sensible way to deal with a problem of some urgency

During the fiscal year the Commission referred to the Department of

Justice for consideration 32 cases involving violations of the Shipping Act

1916 and the Intercoastal Shipping Act 1933 and rendered the Department

all necessary assistance in connection therewith
LEGISLATIVE DEVELOPMENTS

The Commission was concerned with four legislative proposals

which were transmitted to the Congress during the fiscal year The

proposals which were introduced as bills were 1 a proposal to

amend the Intercoastal Shipping Act 1933 to permit the Commis

sion to require that carriers operating in the domestic offshore trades

keep uniform accounts and allow Commission representatives access

to those accounts for inspection purposes HR 12627 S 2964

2 a proposal to amend section 28 of the Shipping Act 1916 to

require witnesses in Commission proceedings to make an express re

quest for immunity HR12628 S 2963 3 a proposal to amend

the Shipping Act 1916 which would authorize the Commission to

grant exemptions from the provisions of the Act HR 15575

S 3391 and 14 a proposal to amend the Intercoastal Shipping

Act 1933 to require carriers operating in the domestic offshore

trades and whose rates have been suspended by the Commission to

make an accounting of revenues derived as a result of increased rates

going into effect at the end of a suspension period HR 15722 S

3544

Representatives of the Commission testified before several Con

gressional committees in regard to maritime matters such as cruise

and safety of life at sea legislation the Administration sproposed

Department of Transportation rates on military cargo and ocean

freight rates in general In addition the Commission made studies

of numerous bills introduced into Congress and furnished pertinent

comments

At the close of the fiscal year the Commission had under considera

tion a number of legislative proposals and it is expected that legis

lation which would expressly provide the Commission with an

interim cease and desist power refund authority and deposition and

discovery powers will be transmitted to the Congress in the next fiscal

year
ADMINISTRATION

Commissioners

There were no changes in Commission membership during fiscal

year 1966 John Harllee Rear Admiral US Navy Retired con

tinued by designation of the President to serve as Chairman The

other members were Ashton C Barrett of Mississippi James V Day

of Maine George H Hearn of New York and John S Patterson of

Illinois

In accordance with its policy of rotating the Vice Chairmanship

the Commission on July 21 1965 elected John S Patterson as Vice

Chairman succeeding James V Day

Staff Organization

Edward Schmeltzer formerly Director Bureau of Domestic Regu

lation was appointed Managing Director on March 15 1966 He

was succeeded by James E Mazure as Director Bureau of Domestic

Regulation

The Bureau of Compliance was established during the year to

include in one Bureau the former independent Bureau of Foreign

Regulation Bureau of Hearing Counsel and Office of Transport

Economics Robert J Blackwell formerly Director Bureau of

Hearing Counsel was appointed Director of the Bureau of Com

pliance Mr Blackwell was succeeded by Donald J Brunner as

Chief Office of Hearing Counsel

Personnel

There were 257 employees on duty as of June 30 1966 This

is an increase of six over the June 30 1965 employment

Management Improvement Program

The Commission is fiscal year 1966 continued an aggressive

agencywide effort for achieving operating efficiencies improving
services to the public and effecting maximum utilization of staff

resources

The results of these efforts are reflected in increased output reduc

tion of work on hand more rapid processing of cases and documents

and improved quality of staff activity

A number of procedural innovations and the active participation

of supervisors and employees in seeking methods for improving

their operations highlighted the accomplishments of the past year

Supervisor management responsibility was emphasized Su

pervisors at all levels participated in the establishment of cost reduc

tion goals An honorary awards program commenced in November

1965 accents the role of the supervisor in achieving cost reduction

through management efficiency

The Employee Suggestion Program was directed towards em

ployee participation in agency management activities and in improv

ing service to the public Employee participation in the suggestion

program was increased from 10 percent in fiscal 1965 to nearly 25

percent in fiscal 1966

Professional positions in tariff examining were restructured

to remove routine duties which were then assigned to clerks and

technicians This resulted in speeding staff action on substantive

matters improving the quality of the output of the professional staff

and improving service to the public

The Commission snew Rules of Practice and Procedure effec

tive December 1 1965 include every modern procedural technique

for speeding the litigation process The new rules and other pro

cedural innovations have resulted in a general speeding of the litiga

tion process

These and other management improvement actions are reflected

throughout this report
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APPENDIX

Statement of Appropriation and Obligation for the Fiscal Year

Ended June 30 1966

APPROPRIATION

Public Law 89164 89th Congress approved September

2 1965 For necessary expenses of the Federal Maritime

Commission including services as authorized by section

15 of the Act of August 2 1946 5 USC 55a hire

of passenger motor vehicles and uniforms or allowances

therefor as authorized by the Act of September 1 1954

as amended 5 USC 2131 3150 00

Public Law 89426 89th Congress approved May 13

1966 Second Supplemental Appropriation Act 1966 to

cover increased pa costs incurred under the Act of Oc

tober 29 1965 1PL 89301 68000

Less transfer to General Services Administration 45325

Appropriation availability 3 172 65

OBLIGATIONS AND 1 NORLIG TED I3ALC CE

Net obligations for salaries and expenses for the fiscal year

ended June 30 1966 3 116 483

Unobligated balance withdraw n by the Treasury 56192

STATEMENT OF RECEIPTS DEPOSITED RITII THE GENERAL FUND

OF THE TREASURY FOR TILE FISC AL YEAR ENDED JUNE 30 1966

Duplication of records and other document 5489

Freight forwarder license fee 62 800

Fines and penalties 113 550

Bonus for reporting services 11 250

Miscellaneous 13

Total general fund receipts 193 102