UNITED 

MARITIME 

REP

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FOR THE P

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GOVERNMENT 

WASHIN

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UNITED STATES MA

OFFICE COM

WASHIN

COMMIS

EMORY S LAND 

HOWARD L VICK

JOHN M CARMOD

EDWARD MAOAUL

THOMAS M WOOD

A J WILLIAMS 

LETTER OF 

UNITED STA

To The Congress

I have the honor to present here

Maritime Commission for the fisc

The Commission is intensely 

made by American shipbuilders 

record therefore and in the sense 

the Maritime Commission virtua

in this report a summation of th

inception

From this brief review the Cong

the few years before Pearl Harbor 

was resuscitated under the stimu

1936 and prepared for the test th

The Commission found time d

deal of study to the problems 

Merchant Marine to peacetime sta

greater progress along this line wa

of the fiscal year and the end of 

preliminary work was performed 

report
UNITED STATES MA

I INTRO

The end of the war brought to 

the world sshipbuilding history 

ever given an industry than tha

1942 And it may be said in all h

more responsibility for progress of 

success than the men and wom

Maritime Commission shipyards 

without their effort

Though this report is concerned 

United States Maritime Commiss

June 30 1945 the end of the w

closeness of these dates makes i

course of the Commission sactivi

the hostilities It is interesting to 

trend of shipbuilding during the 

those events to the hopes and plan

and the future of the Nation sma

The role of shipbuilder to the U

after the United States entered th

1 The United Nations ship

tonnage to the point of repla

losses by the end of 1943

2 With the world s prew

established the Maritime C

part of the shipbuilding facil

of types of vessels that were 

3 The American Merchant 

fleet ever under one flag

The stupendous growth of pr

shipyards can be illustrated by a 

the year in which were delivered t
Calenda year 

1939 

1940 

1941 

1942 

1943 

1945 10 line 30 

total 

2 REPORT OF THE UNITED ST

Commission to replace obsolesc

through the fiscal year is

Includes only regular Liberty dry cargo vessels 

The salient point of the table is 

194243 The figures in the secon

a great deal of meaning for unde

sion Ctypes tankers and Victo

transports Navy oilers and tende

and other uses coastal vessels b

tugs landing craft and a variety o

with the armed services

More than 98 percent of the to

built after Pearl Harbor An int

the rise and fall of the production 

divide the life of the Maritime Co

the provisions of the Merchant M

I Before 

In tonnage the American Mer

Harbor was actually smaller than i

sion began the rejuvenation of t

Survey of 1937 disclosed that the

deadweight tons of oceangoing s

Marine at that time When the 

fleet scapacity was about 11 mi

great difference in quality Some 

from active service and 185 new 

placing more than 2 million ton

service

The Maritime Commission in 

program to build 500 vessels in t

designs and a continuance of tan

world events of 1939 led to th

schedule Redoubling in succee

schedules to 400 ships a year in 1
REPORT OF THE UNITED ST

There were 10 shipyards in th

building oceangoing vessels By 

yards strategically located on th

and the Great Lakes

The mere Letting of contracts do

for shipping space in 1941 was ou

of construction and was made m

lishment of the United States as 

and advent of the lendlease pr

European merchant fleets had b

The American merchant fleet was 

ping tasks in addition to carry

required for expanding manufac

The long range ship types requ

in the emergency Shipbuilding 

tialities were to be used against t

gency program that was conceiv

The first two of the Liberty shi

between the time of Pearl Ilarb

quired around 35 weeks for their 

for the ultimate reduction of this 

days When the United States 

builders were prepared for the ex

the global conflict

2 The Rac

Early in 1942 the Maritime 

President to build 8 million dead

and 16 million tons in 1943

As can be seen from the table 

tonnage delivered in 1941 The 

was the Liberty ship The curv

pushed down by strict adherenc

design by prefabrication of large 

welding are instead of the rivet 

taining close coordination betwee

and the shipyards As the time 

went up paced by toilers workin

By June 1942 the monthly avera

shipyards had been cut to 122 da

the first vessels Six months lat

days and the curve descended 

point 392days in December 19

sion contracts at the time and the 

reached 702 00 at the height of 
4 REPORT OF THE UNITED ST

Because of these accomplishm

tons was exceeded by more than 

The huge shipping losses suffered 

of American ships had been regain

to turn in considerable degree f

some shipbuilding requirements 

Joint Chiefs of Staff

3 War Vessels and th

In 1944 the Liberty program w

these emergency vessels were let 

ship had been put into production 

the new ships the United Victor

As a class they have proved high

dition to their modern hull desig

ment their geared turbine prop

horsepower enable speeds up to 

transports or were taken by the 

that distant military operations e

A development of 1944 was in

Maritime Commission and the 

warfare in the Pacific The Com

duction of highspeed vessels duri

of adequate facilities for manu

necessary expansion of these facil

mission sefforts by the beginning 

of turbinepropelled vessels that 

between military types and merc

Many of the Commission sCty

during their construction and co

transports found useful by the N

their supplies for beach and isolat

As the table shows Liberty ship 

half that of 1943 As Liberty sh

were diverted or converted to co

consequent rise in deliveries of ot

tonnage delivered in 1944 was 

preceding year this was only a 

the ships were being constructe

deadweight tonnage Reckoning 

fairer for that year lightship d

1944 construction exceeded even 
REPORT OF THE UNITED ST

4 The Ye

The Commission sschedule 

deadweight tons of vessels pre

With the Allied troops putting 

squeezed her into surrender t

woven closer than ever into the 

of Staff in planning Pacific oper

The defeat of Germany had lit

The principal new need of the t

quired rotation of troops between 

States according to the Army s 

from the European theater to th

wounded men from Europe and 

When Japan surrendered on 

holding Maritime Commission c

on their schedules including 45 

4598 10 deadweight tons Wa

tracts for 132 ships aggregatin

mission sschedule and private 

ships and 3619 872 tons The 

cargo vessels 46 emergency carg

and 24 coastal tankers 5 transp

The adjustments included chan

that were planned as transports 

3 cargo attack vessels AIKA 

3 fleet oilers being built for the N

oilers changed to coastal tanker

well under construction when ho
II THE F

CONST

In the fiscal year 1559 vessels 

mission 866 in the last 6 months 

of 1945 The aggregate deadweig

564 tons

Ty

The types built during the fisca

The major merchant vessels inclu

8 refrigerated Ctypes 403 Libe

217 tankers

The military types including 

those for use of the armed servic

Navy AIWA 38 tankers for the N

19 frigates 161 attack transport

ports for the armed services

The minor types included 141 

coastal vessels 14 concrete vessels 

9 harbor tugs a wooden barge an

The greatest change in the cons

was the drop in military types fro

to 82 in the second half Deliveri

sharply in the second half The 

during the two periods marked 

struction from 287 to 116 and a

to 217

Metal C

From inception of the Commiss

to the end of fiscal 1945 there we

mission supervision and for whic

mission a total of 6469 vessels 

craft and 47 vessels taken over an

adequate financial arrangement 

The estimated total cost to the C

13017 355 28

Warend cancellations in Augu

the Commission sbuilding prog

schedule as of the end of the fis

6
REPORT OF THE UNITED STA

August shows a readjustment w

vessels 482 600 deadweight to

This excludes 3 vessels that had 

but restored by Commission actio

The readjustments reflect a tota

the Commission to June 30 1945 

ing 55262 40 deadweight tons

PRODUCTION A

The function of the Productio

for the various shipbuilding prog

esses allocate its distribution i

and expedite its delivery

Steel plate the largest ship co

during the fiscal year but difficu

other components notably marin

ing equipment pumps motors co

galley equipment and spare part

With the end of the emergency 

Division grew less arduous as s

sarily done well in advance of co

requirement from the War Shi

schedule materials and parts to c

A surplus of materials in cer

structurals sheets and bas an

hundreds of thousands of tons o

of electrical cable was utilized

Many materials and compone

fiscal year In its expediting ac

cations and scheduling necessary 

controlled distribution of materi

contacts with the military branc

Production Board

With the diminution of the Ds

field offices was begun with th

reductions in force in Pittsburgh 

in Oakland Calif

PROC

The Procurement Division i

transportation of material and 

Commission has an interest an

other projects owned wholly or in 

during the fiscal year as a purc

Administration in procuring spa

684237462
8 REPORT OF THE UNITED ST

operations For the first threeq

was also responsible for all cus

supplies and equipment until th

Division of Contract Settlement 

The Division carried on its fie

located in New York Philadelp

New Orleans San Francisco O

Seattle

Pur

Procurement for the 1945 sh

completed with the end of the 

material and equipment for 66

construction programs Victory 

attack APA coastal cargo and 

At the request of the War Sh

set up procedures for procuremen

vessels The project was begun 

close of the period the contracts 

mately7000

During the fiscal year 27029 

Washington office with a total v

orders totaling 46245 were place

aggregate value of 37159 08 65

Price 

Pursuant to the Repricing Act 

of 1943 the necessary organizat

curement contracts in accordance 

established within the Procureme

tracts of approximately 3500 p

subcontractors who have furnishe

Commission was commenced by t

in many cases and in cooperatio

in others and it is estimated tha

have been or will be made as a 

summated prior to the close of th

Ware

Warehouse and storage operat

necessarily expanded to meet the r

disposal program and the closing o

tional storage facilities were es

Oakland Calif Portland Oreg 2 
REPORT OF THE UNITED ST

Camp Shelby Miss Williamsp

Savannah Ga

Material valued at 3238 46 02

and material valued at 1199260

during the fiscal year The value 

the fiscal year aggregated 1424

carried over from the previous fis

Domestic F

Activities covering the tran

materials and surplus property 

fiscal year and because of emba

country as a result of extreme 

serious and difficult traffic problem

in the transportation of material 

movement of material for the sh

and adjustment of freight classifi

year resulted in considerable savi

Maritime Commission Also es

tions on storage or fabrication in 

of approximately 900 0 in tr

fiscal year 286 790 bills of lading 

vouchers covering the movemen

ment by the Commission in the a

Vessel 

The District Inventory Section

in process at the beginning of the 

The vessel inventories accomplis

5373 and final settlements of431

Inventory Section Washington 

tories and public vouchers in the 

representing the value of unbro

water paid to owners of vessels 

chartered by the United States 

Shipping Administration Also 

aggregating 167 7882coverin

newly constructed vessels at the t

Commission Inventories coveri

operating under General Agency 

made examined and transmitted 

ing consumable stores fuel and 

an aggregate value of6764 07 80
10 REPORT OF THE UNITED ST

SHIPYARD LA

A principal concern of the Div

in the fiscal year was allocation of 

the shipyards according to the im

strategy of the war

The Commission smost critica

the building of the types designate

combat transports and combat ca

on Commissionbuilt hullsfor sp

The Director of the Division rep

on the National Manpower Prior

War Manpower Commission to re

measures and advise on other o

between the committee and the 

essential labor

When a labor deficiency develop

these ships an A priority was 

Commission to relieve the situa

tained between the Division and 

War Production Board and regi

mission to coordinate the labor su

The difficulties of retaining key p

plants making ship components b

in face of heavier demands of Se

the Division was given authority t

Administration as well as the Ma

Selective Service on deferments 

responsible for handling defermen

yards new shipyards and for ma

well as contractors and subcontr

for shore personnel of shipping co

warehouse employees and longsho

A revision of Selective Service p

men between the ages of 18 and 

brought a new volume of work t

office to handle the flood of lists 

By June 15 1945 826 lists had b

contained 33820 names out of wh

actions by local draft boards we

percent

It was discovered in February 1

of the shipbuilding industry increa

of the fleetwere being hindered 

and workers in specialized catego

from recruiting labor because they 
REPORT OF THE UNITED ST

tion Urgency List With assista

Maritime Commission persuade

blanket ship repair yards into the 

tion relieving a situation that wa

Women 

The shipbuilding industryan

Pacific coastis unanimous in its 

the demands of Selective Service 

industries made it exceedingly di

workers and even obtain unskill

breach They proved to be exce

such as welding and in other jo

requisite Their numbers increase

and when the peak of the building 

percent or approximately 100 0 

yards holding Commission contrac

is that the Oregon Shipbuilding C

as one of the best in the wartime 

women than any other yard at t

cent of its shipyard workers were 

Tours of Pacific coast shipyards 

Lakes during the fiscal year by th

by the Commission to advise on w

ers revealed great improvements

Since many shipyards completed 

year it was felt that there would 

supervision over working condition

office of Consultant for this purpose 

fiscal year

Shipyard 

Because of the great number of 

1942 and thereafter the system of 

oped was of the greatest consequen

struction program

Though intraining was primarily 

and in some cases was materially 

systems the Commission sTraining 

in coordinating the work and fu

direction when it was required

Systems for training and upgrad

in operation which on the broad a

mechanics in 6 months and provide

to supervisory positions Several h

were trained in these courses durin
12 REPORT OF THE UNITED ST

During the fiscal year the Su

siderable part of his efforts to so

in yards on the East and Gulf c

ciencies in the number of foreme

training classes were held in 

being placed on group conferenc

Health 

Considerable improvement in 

the fiscal year as the result of s

frequencies were highest Num

were made by Division consu

directors Bulletins on pertin

were made available to all yard

Shipyards primarily engaged 

frequency rate by nearly 30 pe

most of this improvement was 

quency rate dropped to 227the 

years was 213 during the fast 

Maritime Commission contracts 

35 percent during the 3 year 

among this group was that of th

frequency rate was reduced to l

the Gulf where the rate was red

Atlantic and Pacific coasts repo

mately 30 percent during the 3 y

A survey of respiratory illness

conducted during the year by 

auspices of the Division the re

Work

When expiration of ship con

layoffs in shipyards the Divisio

greatest amount of job protec

requirements in each area were 

the information transmitted to 

War Production Board This 

ployees could be transferred to 

power requirements with suffi

adjustments for workers and th

Disputes 

Early in the fiscal year the D

War Shipping Administration in 

to wage scales and standards 

same manner as it represented 
REPORT OF THE UNITED ST

There were no serious work stop

few minor disputes were settled ra

Representation on the Shipbu

maintained throughout the year 

between contract yards and the W

increases and other adjustments

INSU

Interests of the Commission in 

braced in the Commission sbuild

are protected by various kinds of 

eral forms of marine insurance c

contracts mortgages construction 

other legal liabilities of the Com

pensation and various kinds of p

priate insurance contracts

The underwriting functions of 

by the Merchant Maxine Act of 

1936 as amended and the act of 

still performed by the War Shipp

functions were transferred by the 

WSA

Support of the 

The Commission has consisten

the American insurance market 

for by Commission funds has of c

companies In addition howeve

urged shipbuilding companies to p

American market The net resul

volume of wartime ship construct

insured considerably more than t

placed with domestic companies

Builder sRis

The Commission spolicy inaugu

bring to an end the building of Libe

tion of more modern vessels also 

sion insurance operations Libe

made on a cost plusfee basis were n

of construction contracts from tho

assumed the insurable risks to thos

came responsible raised substantia

under builder srisk form policies

Though the costs of this insuranc

shipbuilding contractors the Com
14 REPORT OF THE UNITED ST

such costs Its interest stems fro

construction contracts which cou

tion costs

Casualt

Emergency shipyards since 19

pensation automobile and othe

cost basis in accordance with a 

clusive use of contractors with 

tracts in which the cost is either re

construction cost

The Commission requires insu

of insurance costs at regular state

been completed and the insuran

completed

Where contractors are still 

interim settlement is made ann

Settlements have been examine

separate projects The total co

24444 156 73or 5567 percent 

been purchased commercially at 

Group 

Owing to a change in the for

direct interest of the Commissio

the workers in shipyards has ce

mission recognized a part of the 

premiums as an item in the cos

cost is entirely for account of th

REG

The Maritime Commission is c

carriers by water engaged in for

commerce between United State

Carriers are required to estab

and may not make any changes 

The Division of Regulation pa

rates and has the power to esta

particular trades

It is also a function of the 

undue preferences or privileges 

disadvantages or discriminatio

specifically prohibited by the M

The Maritime Commission sc

commerce is facilitated by sup
REPORT OF THE UNITED ST

into by carriers for establishment 

to limit control or destroy com

vision over these practices has be

for the further protection of Unit

Formal I

Two major investigations were 

and practices In Docket 640 T

Ports pending hearing the obje

making at all major California 

RatesPort of Redwood City 

whether a marine terminal may 

they are for the exclusive benefi

fore discriminatory An analysis 

and expenses was required to de

rates Requests for surveys of ra

receiving consideration

A pending decision in another c

United States Gulf Atlantic and In

Agreement 7620 is important fo

respondent the Kerr Steamship C

in other conferences The princip

ent is a common carrier or the age

A proceeding concerning confer

formal complaint in Docket 633 

Florida East Coast Car ferry Co 

the hearing to admit Lykes to con

Proper rate filings as required 

of 1933 were secured by an order 

tion by Mendez Co between 

Reparation for alleged unlawful te

630Silfi ied Olsen Shipping Co v 

al pending hearing and Dockets 

ting Co v Companhia Nacional De 

Reparation is also sought in Dock

v Booth Steamship Co et al pendi

were allegedly inapplicable

A final determination of the M

over foreign freight forwarders is 

Court stemming from the case of 

v United States The case is On a

Federal Court in New York

The Commission through its reg

adjust informally many other co

684237463
16 REPORT OF THE UNITED ST

carriers involving alleged unlawf

gations and complaints were ins

Four proceedings were carried ov

cases were carried over to the 

one of which included two case

were issued and two special inq

Rate 

Close cooperation was maint

ministration to assure that carr

rates as required by the Intercoas

Waiver of the coastwise laws 

applicable to ships of foreign li

thousand gross tons operating 

trade To that time activities 

were watched closely for comp

these vessels were acting as co

also necessary in the United St

Lighterage companies operatin

in Alaska as well as between p

held to be common carriers wit

Shipping Act 1916 as amended 

now filing their rates with the C

A revision was made of the C

order to obtain more complete 

water and also information from 

ping Act 1916 as amended

Tarif

One hundred and thirteen ta

A large volume of corresponde

or otherwise commenting on ta

carriers

Although the War Shipping 

carriers engaged in transporta

territories and possessions and 

WSA and therefore working fo

was insisted that WSA agents 

the Shipping Act of 1916 Co

and granted 16 special applicat

statutory notice

Shippin

A marked increase in confe

fiscal year Conference agre
REPORT OF THE UNITED ST

Shipping Act of 1916 as amended 

tion of rates and trade practices i

New conferences were organiz

and extended in scope the activi

controlled territory and the appro

Many conference agreements a

of Regulation gave especial attent

ments consistent with modern st

pliance with the governing statute

A development that cleared the 

modern vessels in the trades betwee

tic and Gulf coasts and Brazilia

choice of rates had been possibl

vessels taking a higher rate wh

tonnage An approved amendme

There were on file with the Co

agreements between common carri

Shipping Act 1916 as amended 

pursuant to the provisions of sec

are agreements of common carriers 

ship lines

During the fiscal year 36 agreem

received section 15 approval

Foreign Tariffs Over

The Division continued to be the 

holding merchant ship warrants t

agreements and the Commission s

Schedules filed during the year 

Docket 128 

Other schedules filed during the y

Term

A notice approved by the Commi

to terminal operators requesting th

and contracts As a result 180 

Eighteen other terminal tariffs wer

tion 15 agreements The total filin

over the previous year Pursuan

Docket 555 Practices Etc of San 

2 terminal agreements and one mod

Another agreement between 3 ra

relative to dockage was filed and a
18 REPORT OF THE UNITED ST

CONTRACT R

A saving to the Government of 

tiation of contracts and forward 

through the Commission sPric

was made at a cost to the Gover

cent of the recovered amount

Recovery during the fiscal yea

During the fiscal period the 

242 cases A total of 1272 co

total sales of1396 628 000sub

tractors 632 with renegotiable s

agreements or are in process r

The remaining 640 contractors 

to 490 852 000 were found to 

Approximately 970 cases were p

subject to the Renegotiation Ac

governmental agencies

TRANSFER OF VESSEL RE

Four hundred and fortyeigh

tons were transferred during the 

istry under sections 9 and 37 of 

mission disapprov ed 10 sales 

citizens

Vessels approved by U S Ilarittme 

and orregistry and flag Ju

1 Sailing vessels schooner

23 Tugs Pleasureandvessels barges yachts ym etc

a Motorboats undocumented of less th

4 Tankers

5 Commercial vessels under 1000 gross tons fish

boats etc

6 Commercial vessels over 1900 gross tons c

cargo passenger

a Subsidized proceeds reserved for new 

1 Nonsubsuliz dproceeds reserved for 

c Nonsubsidized

4 U S Government owned

Total

In addition to the sales the 

Americanowned vessels to alie

of 1916 Most of these were s

barges and other small craft o

number of charters is not repr

General Order 56 of the Comm
Nationality Ntunber of vessels Total tonnage gross 

Arabian British Colombian Bahamian Brazilian Canadian Costa Rican

Netherlands French Haitian Honduran Liberian Mexican Cuban

R

M

e4 2068 1974 39246972 139 7923096

101 4013

REPORT OF THE UNITED ST

authorization to charter America

to aliens upon the American owne

party covering the proposed voya

Vessels approved by U S Maritime 

and orregistry and flag Jul

Surrendered M

During the fiscal year the Comm

30 subsection 0 a Merchant M

for the surrender of marine docu

proved pursuant to subsection B 4 

of marine documents of 65 vesse

WSA for delivery to the War and 

LEGAL O

The Commission sGeneral Cou

by or against the Commission 

Attorney General of the United S

At the beginning of Mw fiscal 

involving 9245 562 00 This inc

in

1

which no amounts are carried 

780 266 71 were added and 26 

closed 109 0502 was received 

The cases pending at the clos

condemnation proceedings totaled 

ORGANIZATION 

There were no changes in the me

the fiscal year

In anticipation of the time when 

ary to disposal of the ships already 

plans during the fiscal year for fu

abolishment of the War Shipping 

time after the close of hostilities w
20 REPORT OF THE UNITED ST

return of functions and key perso

that would best serve the peacet

and the industry

Personnel of the Commission re

ing the fiscal period There were 

beginning of the fiscal year and 17

As the construction program wa

was altered to meet new conditio

was consolidated with the New O

offices and in Washington were ci

those qualified by training and ex

in the program that was changin

tion to operations ship disposa

surplus property
III THE PRESENT 

As victory in Europe gave add

early

work

termination

were increasingly

of all hostilities

important

try while others such as prod

duties were fading

A great deal of planning was 

task of the War Shipping Adminis

would be finished international c

and the duties assumed by WSA 

restored to the Commission

LEGIS

The legislation of major importa

the period covered by this repo

Measures were introduced in bot

providing a method for fixing the 

during the war period and owned 

not completed in the SeventyE

were introduced in the succeedin

various data were submitted

The Maritime Commission was 

Act of 1944 as the sole disposal ag

capable of conversion to merchan

posed of only in accordance wit

Marine Act of 1936 as amended an

Pending ship sales bills also desig

the disposal agency

Other legislation of a general n

Maritime Commission are the Co

Mobilization and Reconversion A

Approp

The Commission sconstruction 

appropriation of6766 000fo

in contract authorization of 570 

Offices Appropriation Act 1945 

riation for the fiscal year of 1946 

struction fund because of curtaih

following the end of the war in E
22 REPORT OF THE UNITED STA

VEday repealed 4265 000o

ization and cancelled 3100 0

volving fund The Second Def

provided 666 912 000 for acquisi

lendlease purposes

Seamen 

Legislation extending reemploy

Merchant Marine during the war 

Laws providing medical and hos

and consolidated in the Public H

made by statute for continuance o

even though the warrisk insuran

Air T

Legislation that would permit 

transport on ocean trade routes w

be economically and efficiently 

during the year A proposed m

Civil Aeronautics Act of 1938 wa

mission because under present la

Board prohibit joint operations of 

The law relating to prizes cap

the war was amended to facilitat

An amendment to the Mercha

enable depositors nonsubsidized 

struction reserve funds to mak

delays of adjustments for ship lo

tax returns

The various laws relating to 

exports radio safeguards war p

were extended during the year

CONTRACT SETTLEMENT 

The shipbuilding program for 

mated at the beginning of the y

tons This was based of cours

would continue through 1945

The recession in shipbuilding f

the directional changes in the p

Joint Chiefs of Staff were met le

and a great quantity of surplus 

In accordance with the purpo

Settlement Act and the Surplus P

time Commission created a Contr

Division in January 1945
REPORT ON THE UNITED STA

The Commission came to be cha

own surplus and unrequired mat

materials declared surplus by the A

that surplus declarations from those 

in volume the declarations of the C

The Maritime Commission is bo

in the meaning of the terms as expre

and

activities

regulations

in surplus

The

disposal

regulation

place 

handling all termination inventorie

unrequired and disposing of marine 

and all vessels except those classifie

by the Government owning agencie

Warehouse and sales functions for

by the Procurement Division were 

In April the contract settlement and 

War Shipping Administration were 

The first 6 months of the Divisios

were largely iii the realms of organiza

ment of procedures and placement 

work load that was expected to be 

Potential surplus material owne

exists in practically all shipyards 

houses operated by the Division a

plants

In collaboration with the constr

Uu Commission and of various shi

was made to secure maximum ut

materials in forthcoming shipbuil

issued covering scrapping and clean

agencies the surplus material availa

At no time in the fiscal year wer

as to the ultimate work Load of the 

sonnel hampered activities in establ

with procedures and organization ad

Contract Te

The number of contract terminatio

year was 7061 involving 219800

cancellation of commitments amoun

and 959 involving cancellations tot

Also two terminated costplus contr

totaling 203 657 000remained unse

64267 46 4
24 REPORT OF THE UNITED ST

At the close of the fiscal yea

settlement of their claims unde

by the War and Navy Departme

authority by the Settlement Re

subcontractors not in excess of 

assigned to the consolidated ter

Navy

Surplus 

To and including December 3

time Commissionowned materi

approximated 3700 0 and s

1945 approximated 8000 w

Finance Corporation 22 percen

and 20 percent to the Maritim

foregoing four surplus declarati

Commission involved a total rep

been assigned to the Reconstruc

Materials utilization efforts of 

Materials Division in collaborat

since January 1 1945 in placing 

wise unrequired materials into t

The following summarizes ac

as a disposal agency for marine 

1945 and shows the increased a

Materials Disposal Section of t

Materials Division

The inventory balance on hand 

all materials declared to the 

agency 57 percent had been dis

VESSE

In anticipation of the time w

be charged under congressiona

built merchant ships there w

Division of Large Vessels Disp

July December 1944

JanuaryJune 1945

Fiscal year 1945

24 REPORT OF THE UNITED ST

At the close of the fiscal yea

settlement of their claims unde

by the War and Navy Departme

authority by the Settlement Re

subcontractors not in excess of 

assigned to the consolidated ter

Navy

Surplus 

To and including December 3

time Commissionowned materi

approximated 3700 0 and s

1945 approximated 8000 w

Finance Corporation 22 percen

and 20 percent to the Maritim

foregoing four surplus declarati

Commission involved a total rep

been assigned to the Reconstruc

Materials utilization efforts of 

Materials Division in collaborat

since January 1 1945 in placing 

wise unrequired materials into t

The following summarizes ac

as a disposal agency for marine 

1945 and shows the increased a

Materials Disposal Section of t

Materials Division

The inventory balance on hand 

all materials declared to the 

agency 57 percent had been dis

VESSE

In anticipation of the time w

be charged under congressiona

built merchant ships there w

Division of Large Vessels Disp
REPORT OF THE UNITED STAT

The Commission was made the a

plus Property Act of 1944 In se

declared that

The United States Maritime Commiss

surplus vessels which the Commission 

capable of conversion to merchant use a

in accordance with the provisions of the M

and other laws authorizing the sale of su

The functions of the Division a

order which created it were deter

phases the technical aspects of ap

sales or charter of Governmentown

vessels to their owners

Though other organizational arr

the close of the fiscal year in settin

the Commission the original Div

period to perform essential prelimi

One of the first steps taken was 

great number of records pertaining 

tion and condition of the merchan

had been in the custody of other 

Maritime Commission and War 

ferences were held with appropriate 

ships under their jurisdiction were c

would become surplus to the Navs

During the fiscal period the Divis

tions of surplus vessels in the follow

waters vessels in domestic ports th

standpoint not worthwhile to rep

Navy jurisdiction and those in do

Disposal of small vessels that w

remains with the War Shipping Ad

It was estimated by the Divisio

that approximately 225 passenger 

dry cargo vessels under charter w

surplus and returned to their owne

to private operation of postwar serv

of charter cost

Some steps were also taken to a

work

principal

ahead

activities

which assuredly

in the coming

woul

recruit a highly technical staff to 

coming under its jurisdiction and 

persons to aid in the essential task 

intent of the act of 1936 with reg

fleet by private interests
26 REPORT OF THE UNITED 

RES

Studies of the various fact

locations for the reserve fleet w

the fiscal year Though no si

of the period surveys were mad

Gulf coasts taking into cons

proximity to repair facilities 

workers

Shortly after the end of the 

were selected but only a few s

tremendous demand for transp

The probabilities are that few 

last quarter of the current fisc

Experiments in dehumidific

preservation of machinery and 

Liberty ship in Hoboken N J 

these studies will not only red

quired to activate the reserve 

of the cost vary from 3000 t

MAINTENA

Maintenance and repair ope

Administration some time ago 

period The Commission sD

having supervision of the Re

praisals and condition survey

vessels for mortgage and trad

during the fiscal period are sh

rankers

Passenger 1erghtess vessels

Total

AIDS 

Administration of the provi

financial parity for American 

become an enlarged and impor

months to come During the 

in the field of subsidy differen

continued control of most of th

Administration
REPORT OF TIHE UNITED ST

A number of shipping compan

plans were applying for construc

the act of 1936 which authorizes 

differential up to 50 percent of 

new vessels to citizens of the IIn

the statutory requirements

During the fiscal year the 

subsidy aid for 62 vessels comp

The total of grants from inceptio

the fiscal period 258

Of these 107 bessels have bee

have been lost leaving 151 exist

is applicable Of the 151 vesse

at the end of the fiscal year

Trade In 

The Commission is authorize

1936 to accept old vessels as an 

ships As in the preceding fiscal 

lete vessels in this fiscal period 

the following table of tradeins a

Dry cat go

rankers 

Shi

Increased activity among shipp

restoration

C

of shipping services 

ommission slong range vessels 

As shown in Appendix P 3

contracts dining the fiscal year 

vessels were under construction 

Of the 94 vessels delivered or b

wore nonsubsidized tankers 67 w

sta ucion differential aid and 11 

domestic cost

Tot 31

Mortgag

Commitments for insurance of 

for construction aid to vessels e

and nearby island trades are au

1936
28 REPORT OF THE UNITED S

There was no activity in this f

commitments were made and tho

a balance in the fund of 586573

Statutory 

Ship operators holding differe

are required by the act of 1936 

their profits above a certain leve

accounts in accordance with the 

Although payment of opera

pended for the period that the w

scheduled operations on essenti

contracts with the Commission c

funds proceeds from the loss or s

profits from operations in accor

Commission specified under its g

Under section 511 of the act o

operating under the differential 

a construction reserve account 

privileges accorded subsidized op

be expended within a twoyear 

authority however to extend thi

ator for periods not to aggregat

emergency made it imperative to 

the extensions were to run not lo

of hostilities or such other date 

designate

A considerable portion of the 

funds has been committed durin

tion Other depositors awaiting 

ment of ship sales legislation hav

ting their reserve funds

Balances in the capital reserve 

percent in the fiscal period and i

8 percent raising the total of ca

joint accounts with the Comm

ported in the previous fiscal ye

1945 this last amount including 

funds and 65410 781 40in the 

TECHNICAL 

For the Commission sTechn

principally a period of applicatio

gained in wartime construction 

round out the world slargest me
REPORT OF THE UNITED STA

The chief deficiency in the merc

the research that was necessary a

drawing boards every effort was 

safest and most modern afloat In

they proved practicable and new 

work the Technical Division bore 

aspects of ship operation therefor

on investment

Res

Much of the research work in t

the David Taylor Model Basin t

governmental laboratories and on 

been improved as the result of stru

data obtained on oil tankers tow

heads and concentration of stresses 

The year sresearch program als

ing materials condenser tubes a

ments would be consequential to v

Cargo handling equipment h

experiment Every study of shi

handling costs are the greatest 

miscellaneous cargo at sea Th

handling studies is included in the 

Gas T

In keeping with its aim of develo

mercial ships for the United St

utilizing the recent gas turbine de

in the aircraft industry in the appl

to commercial ship operation T

in improved fuel economy with re

certain power range A main pro

contracted for by the Elliott Co 

collier This will be the first ship 

turbine and the first commercial s

De

A directive to prepare replacem

was given the Commission by Pre

In response the Commission durin

designs for transAtlantic service 

well as vessels suitable for firstclas

America
31 REPORT OF 1HJ4 UNITED ST

Requirements of the tramsPac

vered in a design representing a d

tecture and marine engineering

A design was well nuclei way e

of the C3 type of the Commisss

speed and improvements in cargo 

economy are sought in the new d

A special project was received 

for use in the European Theater t

was rushed through and construc

of the directive These barges w

in the various theaters

Two small tankers one for len

were designed and put into produ

is for 30000 barrel capacity and 

The first two cable ships desig

structed introducing several inno

ship practice

W

There have been fewer struct

during the fiscal year the result 

and supervision of welding im

structural design and renewed 

welders performance by an educa

Internatio

The Technical Division has co

ment of vessels and on laws rules 

regard to the design constructio

chant vessels These reports are 

the Division but also for the int

sea and on admeasurements wh

near future

The Technical Division has 

Economic Administration in the 

liberated countries and in Germ

by setting up a subcommittee o

Industrial Intelligence Committe

collected considerable informatio

building and its allied arts and sc

DIVISION OF 

The Commission sprogram 

progress of the ear was drama

spectacular as an accomplishmen
REPORT OF THE UNITED STAT

plete a picture of the activities of 

possible the Division of Informatio

keep pace with a varied list of info

In the beginning of the war prog

captured the imagination of the pu

period extended its coverage thro

outlets to record the outstanding a

in 1942 and 1943

The Division sefforts were to kee

ress of ship construction from th

monthly deliveries The Division 

their employees with mutual info

purposes This was clone by poste

addition to the arrangements for pro

in making the Commission sM 

facturing plants and their emplo

records

When the War Shipping Admin

1942 its informational requireme

Division As the peak of the Coms

at the end of 1943 the media d

operational aspects and the work o

with FSA activities after that tim

Press and 

Contacts with newspapers maga

maintained during the fiscal yea

covered by press releases a con

prepared for general and trade p

correspondence and individual h

interested in the Merchant Marine

Grap

A major project of the Division d

of moving pictures for documentar

a major part of this activity was 

films were made of shipbuilding o

other phases close to construction 

constitute a valuable series for edu

The Graphics Unit enlarged its s

negatives including liberal use o

with new events in shipbuilding an
32 REPORT OF THE UNITED 

Surp

With designation of the Mariti

for marine surpluses there was 

prepare press releases and assist 

sale of these surpluses

Working in conjunction with 

and Surplus Materials the Surpl

buyers of surplus materials info

results of sales through press rele

issues of periodic lists of materia

Maritime Surplus Seller conceiv

The promotional effect has r

maintaining one of the best re

program and without the aid of 

Nami

The great number of ships d

considerable work in finding suit

up in the Division to receive sug

research and authentication for 

Nationwide interest was aro

Liberty ships after persons who d

identified with the affairs or hist

The first 35 Victory ships we

Nations The next 218 bore nam

were named for educational ins

Educatio

In the preamble to the act of 

the Nation spolicy to foster 

Merchant Marine

Through a new unit the Educa

sion is establishing contact with 

country to place appropriate ma

the Merchant Marine at the disp

In this way the Commission 

school Bourses in history geogr

ception of the role of merchant sh

the Nation seconomic welfare a

Mar

The annual observance of Ma

general direction of the Commiss

coordinating the activities of p
REPORT OF THE UNITED STAT

having an interest in the welfare 

1945 observance was particularly suc

attention the accomplishments of 

war by celebrations not only in c

localities as well

Rad

Much of the Radio Section sact

direction of recruitment of seamen 

assistance of networks stations an

A generous response in radio time h

seamen during the fiscal year

The Radio Section helped prepa

with maritime subjects as their the

News D

Current information and comme

and magazines is gathered and diges

issues a daily summary of press m

magazine content distributed thro

interested persons and also prepa

tion that had wide circulation am

employees

Field O

At the peak of the construction 

sion of Information were maintain

San Francisco Chicago and Ph

close contact with informational o

With the decline of shipbuildin

Chicago were closed the three re

Commission and WSA

POSTWAR 

The end of the fiscal year foun

intent on its course of providing w

Staff required it to build During 

the Commission had considered it w

Committee to study the aspects of 

results and a consensus of its concl

The need for expanded research f

the Postwar Planning Committee 

recommendations led to increased a

and Statistics

Particularly in the last half of 

demands for information and data 
34 REPORT OF THE UNITED 

of the war in 1945 gave rene

activities

would throw

Such

peacetime

phases

plannin

of the 

labor legislation trade routes 

operational differentials ship s

and foreign shipping policies w

that would be essential not on

for other segments of the ship

One of the principal studies b

was related to foreign trade r

report was not completed by 

however received by the Comm

was immediately submitted to 

terested parties for their comrn

Numerous other studies were 

fiscal period including a tentati

shipping in the immediate futu

shipping and development of p

A general belief persists tha

new heights in the coming year

the belief and has reiterated it

take advantage of its opportu

Marine in the forefront of wor

security of the Nation The 

position that the American m

about 50 percent of the Nats

waterborne domestic trade wh

The sweeping peacetime obje

the Merchant Marine Act of 19

It was stipulated that the U

chant Marine As a result of w

has more than half the entire 

only in certain categories whic

The condition is being remedie

tion As a national policy the 

table means of maintaining shi

were developed so fully in the w

It was further declared to be 

its merchant fleet be privately 

cable Action within this sphe

of the wartime job of returning 

release of international controls 

that assure orderly conduct of 

the Congress of legislation to go
REPORT OF THE UNITED STAT

The ships to be built the Decl

equipped safe and suitable The 

cargo ships plus the fast tankers th

are the equal of any ships in the wor

will be their counterparts in safety 

various trades in which they shall o

Another stipulation was that th

trained and efficient citizen person

men in the Merchant Marine reach

time The intensified training cou

train new men and to upgrade sea

475 000 officers and seamen a kno

which will come a competent welltr

It should be noted that for the 

for training and recruitment of m

labor relations was transferred to 

Great advances have been made du

fields but also in the gathering of e

lishment of health standards all of 

the Maritime Commission

In addition the 100 or more shipp

of the War Shipping Administratio

scale operations which should prov

war situation
REPORT OF THE UNITED 

ccox

5 42

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July

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to

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1945

SE 22 a

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REPORT OF THE UNITED 

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REPORT OF THE UNITED STAT

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38 REPORT OF THE UNITED 

c

02

and

disbursements

Oct

26

19
5287 640 105887 640 10 5287 615 10 01919 483 9 00009 63618 589 794 293136 66 586

657 73

3207

951 13 

94696 8 91696 883611 58503 580 807 20 

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REPORT OF THE UNITED 

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057

18

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9

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Balance

at beginning

of

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24196

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0000 657 885 52 6

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140 782 11 140 782 11524 68 81 382 80E

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184 43 41910 19 517

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REPORT OF THE UNITED STAT

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REPORT OF THE UNITED STATE
11411 8274 0000 18436 3 255 563 62 255 563

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July

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1939

to

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REPORT OF THE UNITED 

ropriations

transfers

collections

and

disbursements

Oct

26

1956

to

June

30

945Continued
22

094

649

47

27

221 877

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REPORT OF THE UNITED STATE

APPENDix

C
9161

aunp peace 9g2iam

1 3fa

y6 

mnN aoq

5919 Bead 1118194 1

00

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tuna ieq z9 

tidy peaa lg2 am

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0

50 REPORT OF THE TJNITED 

CO

coo

APPENDIX

Continued
Region

Longrange program Emergency program

Num ber ways shipof Estimated cost Num ber ways shipof Estim

c

East coast

Gulf coast

Great Lakes

West coast

Procurement and

servicing ex

pense

Total all

regions

Reserve for resto

ration of facili

ties

Total

Special facilities for

Navy account

4737

67

3115 1402 064 92015

2

263

571 628

224 238 014

179

25

20 3

2039

42761

151 434 726 969 51 8

857

REPORT OF THE UNITED STATE

1 Includes cost of expansion of existing facilities trans

v Includes cost of expansion of existing facilities tran

liability for canceled contracts totaling 327 800 795

3 Cost of expansion of exis ing facilities2571 628

4 Includes cost of expansion of existing facilities trans

APPENDIX 

Shipbuilding programsales of ships t

Atlantic Refining Co

Cities Service Orl Co

Grace Lines Inc

Lykes Bros Steamship Co

National Bulk Carriers

Pan Atlantic Steamship Co

Socony Vacuum Oil Co Inc

Standard Oil Co of New Jersey

Union Oil Co of California

United Mail Steamship Co

United States Lines Co

Waterman Steamship Co

Total

American Export Lines

American South African Lines

Atlantic Refining Co

Continental Steamship Co

Grace Lines Inc

Lykes Bros Steamship Co

Mississippi Do Shipping Co

Ore Steamship Corp

Pan Atlantic Steamship Co

Standard Oil CaoofCalifalifornia Transportation Co

United States Lines Co

Total

APPENDIX 

Construction of shipways and other 

Purchaser 

COMPLETED

UNDER CONSTRUCTION

TanC2

Tan

TanC2 

Re

C 2

TanC32

C 3 

C 2 

C3 

C5 

CTa2
52 REPORT OF THE UNITED 

AP

Vessels over 20 years of age on wh

during the period July 1 1944 to J

ing by the Government

Name of contractor

American South African Line

Mississippi ShippingCo

New York Cuba Marl Steam

ship Co

Lykes Bros Steamship Co Inc

Terminati

fiscal y

1941 1991 42

940 191040 414142 19104142

940412

4194041242

1938 401

19411130 1939 94041 40404

4

1938 194139 4041

1941 1941 1940 939 940 91414014L
Name of contractor Terminations by

fiscal years

940 A

939 40 A

939 40 A

939 40 A

93940 A

939 40 A

939 40 A

939 40 A

940 41 A

940 41 C

941 C

941 C

940 C

940 41 C

United StatesLines Co 940 41 L

990 41 M

940 P

991 C

93940 P

93940 P

940 S

940 S

940 W

941 W

941 Y

941 J

091 P

991 Q

991 P

Total 

REPORT OF THE UNITED STATE

APPENDIX F 

Vessels over 20 years of age 076 which an od

during the period July 1 1944 to June 30 

ing by the GovernmentContinued

APPEND X 

Statement reflecting cash and U S Governm

capital and special reserve funds of subsi

Operator

American Export Lines Inc

American Mail Line Ltd

American President Lines Ltd

American South African Line Inc

Grace Line Inc

Lykes Bros Steamship Co Inc

Mississippi Shipping Co Inc MooreMcCormack Lines Inc

New York Cuba Mail Steamship Co

Oceanic Steamship Co The

Seas Shipping Co Inc

United States Lines Co

Total

No construction funds on deposit at June 30 1945

0

Ca

29