For sale by the Superintendent of 

Washington 25 D C 

Annual

FEDERAL M

MARITIME A

o

UNITED STATES DE

For sale by the Superintendent of 

Washington 25 D C 
UNITED STATES DE

SINCLA

Wa

FEDERAL 

CLARENCE 

BEN H G

Txos E 

A J WIL

MARITIM

CLARENCE G MOR

WALTER C FORD 
LETTERS O

UNrrED STATER DEPA

Was

To The Secretary of Comme

FROM Chairman Federal Ma

trator

SUBJECT Annual Deport for 

I am submitting herewith the 

and Maritime Administration 

year ended June 30 1956

To the Congress

I have the honor to present t

time Board and Maritime Adm

merce for fiscal year 1956

C

Fiscal 

INTRODUCTION 

AID TO SHIPPING 

Construction differential subs

Federal ship mortgage and loa

Other forms of construction a

Operating differential su

Aid to vessels over 20 years of 

Trade routes 

SHIP OPERATION S 

Demand for ocean shippin

General agency activitie

Charters

Grain stora 

Port developmen

Ship custody 

Other activities 

SHIPBUILDING AND REPAIR 

Construction 

Conversion

Technical developmen

Building proposals 

Ship repair 

SHIPPING STUDIES AND REPORT

Special studies and periodic rep

Ship cargo and labor dat

Labor management relation

MARITIME TRAINING 

United States Merchant Marin

State maritime academie

SHIP SALES AND TRANSFER

Ship sales 

Transfers to foreign ownership 

PROPERTY

Ship

AND SUPPLY 

Wareh

Terminals and reserve training 

Material control inventory an

Purchasing 

ADMINISTRATIVE MANAGEMENT 

Program and defense plannin

Personne

Organization and method

Security and investigation 
FZNA

Account

Au

Internal audits 

Insuran

Accounts rece

Claims 

LEGAL ACTIV

Legislatio

Contracts 

Litigation 

REGULATORY ACTIV

Conference and other agre

FreightForeign 

FreightUnited States terri

Terminals 

Freight forwa

PROCEEDINGS BEFORE HEARING 

Final decisions of the Board 

Recommended decisions of h

Pending proceeding

INTERNATIONAL MARITIME AFFA

Fina

EXHIBITS

1 Balance SheetJune 30 

2 Statement of Operations 

1955 

3 Statement of Equity of 

Years Ended June 30 1

4 Statement of Sources and 

June30 1956 

NOTES TO FINANCIAL STATEMENT

SCHEDULES

1 Statement of Operations 

Years Ended June 30 

2 Statement of Operations 

Inception to June 30 1

A Employment of United Stat

1956 

B Deliveries of New Merchant S

C Summary of Operating Diffe

1956 

D Ships of 1000 Gross Tons an

yards July 1 1955 to June 

E New Ship Construction on Ju

F Merchant Fleets of the World 

G Ships Approved for Transfer 

Flag Fiscal Year 1956 

H Cash and Approved Securiti

Special Reserve Funds of S

Vi
FISCAL Y

Int

The Merchant Marine Act 

laws established the basic prin

respect to the American merc

for the development and prom

sufficient to carry the domestic 

portion of the foreign commer

a naval auxiliary in time of w

United States flag by citizens 

the bestequipped safest and 

by a trained and efficient citiz

the Federal Maritime Board a

whom was placed the respo

have continued their efforts to 

merchant marine The year s

these efforts to 1 Achieve a 

to meet the country simmed

velop a sufficient number of n

to meet requirements of a mod

of meeting foreign competition 

3 develop designs and plan

basis the modernization of w

reserve fleet and to otherwise 

serve fleet vessels for use in 

assist the American merchant 

ment and efficiency of the age

With respect to the ship co

the country embark on the larg

history resulting in a major 

obsolescence of merchant ship

merchant marine In addition 

assures the retention of a nucle

in the form of management 

country swelfare as proved b

this program is illustrated by 

1956 there was a total of 63 s

conditioning or on order in 

excess of 525 million worth o
of the fiscal year plans we

place in American shipyards 

and conversion of an estim

worth of work to the indus

in process of negotiation wi

in the construction of some 

program was realized throu

and Government through 

capital with a minimum of 

constructiondifferential sub

tradein allowances

In connection with ship d

marine as is true in the Ame

ress to improve its efficiency 

meet foreign competition an

of war or national emergen

the substantial completion o

including a Pipeline Tanker 

Freedom Turnpike Island 

cluding 2 cargo ships 1 tan

proposed to be constructed u

tial subsidy agreements in

passengercargo and trailer 

power to merchant ships

There was material progre

proving the mobilization re

reserve fleets through 1 th

which together with ships r

of 150 ships repaired at it c

ship repair program autho

and 2 substantial comple

involving the installation o

steam diesel and gas turbine

gear and modification of hu

the latter project at the clos

these vessels would be increa

or better which was in line w

cant to our national defense 

Liberty ships in the nationa

will enable an evaluation of t

equipment in merchant ship

In the area of assisting th

consequential activities acco

volved in the negotiation of o

for phased ship replaceme

Considerable efforts were dir

tion and planned ship const

merchant marine as covered 

2
largely geared to and influenc

16 subsidized operators

In this connection and pu

Congress the Committee on M

a study which included matters 

differential subsidies being pa

would tend to increase subsid

tions and practices that mig

American merchant marine te

to the United States andor a

Maritime Board Maritime Ad

for promoting and assisting 

Chairman Administrator and 

committee as did numerous re

One of the most significant 

committee was the reluctance 

institutions to lend hundreds 

without some assurance of op

a longrange basisfor period

replacement loans

report

Upon

No

conclusion

843 84th

of

Congres

the he

troller General who rendered 

interposed to the execution of 

of 20 years which would be b

subsidy accrual purposes only 

agreements Accordingly mo

operating differential subsidy 

the following a 20year d

ment to pay parity c pay

under successor contracts with 

at termination of existing c

schedule of vessel replacem

economic feasibility clause pu

Board will determine whethe

posed replacement at the speci

differential subsidy during p

section 611 of the Merchant M

During the fiscal year new 

effective upon termination of 

five operators These contra

ships during the period 10577

of 1014 million In additi

were in process or contemplate

tors for the execution of new 

provisions of which these ope

new construction a total of 

cost of1007 million

407216672
In addition and related to 

the fiscal year 1 4 construc

operators covering the constr

cost of 122 833 970 2 3 

tracts covering the conversio

large ship at an estimated co

In other areas relating to t

programs there were pendi

1 11 applications for cons

the construction or conversi

Federal loan andor mortgag

53 ships and 3 application

ships with operatingdiffere

RoundtheWorld eastboun

The Federal Maritime Boa

addition to administering the 

to devote undiminished efforts 

ing those involving the opera

agency agreements maintena

administration of the provis

relating to 50 percent partic

the movement of Governmen

matters

Aid 

Construction differential 

The Federal Maritime Bo

structiondifferential subsidy 

a Grace Line Inc coverin

at a basic contract price of453

and SS Santa Rosa for ope

Caribbean ports b Moore 

tion passengercargo vessels 

to replace the Good Neighbo

New York and the east coa

Steamship Co for the conver

bination passengercargo vess

for operation in service betwe

in Australia d American 

of the passenger ships the 

Wilson at a basic contract pric

that company stranspacific 

struction subsidy to the Unite

and reconditioning of 8 Ma

of 10 million for operation i

ports and ports in the Far Ea

agreement was predicated up

0
the reconstruction work within 

The basic contract price figur

of national defense features b

In connection with the foreg

tive operators the Federal M

General construction differen

ican President Lines Ltda 

differential allowance was 4285 

ditioning and reconstructing 

in their construction different

the estimated foreign cost p

defense features amounted to 

sponsible

determination

domestic

that

bid

the

of

const

17

percent of the domestic cost 

the two Marinertype ships c

contract executed in the past y

vessels exclusive of the cost 

to 13825 000 as compared t

bid of 26624 000 Moore Mc

that the construction differen

domestic cost of replacing t

executed in the past yearthe 

sels exclusive of the cost of 

29360 00 as compared with 

bid of 48888 362 Grace Lin

structiondifferential allowanc

of the replacement of the SS 

covered in a contract executed 

cost for these vessels exclusive 

fixed at26110 00as compare

bid of450800

The following application

aid were pending as of June 

Co Inc for construction of 

stein Line Inc for purchase 

differential subsidy for conve

senger vessel c Moore McC

of 7 cargo vessels d Ameri

tion of 2 combination vessels 

the reconstruction of 2 Marin

Inc for the reconstruction o

Cantor for the construction o

in the transatlantic service 

construction of 4 combination 

Ore Transport Inc for the 

and j Central Gulf Steam

of 1 special purpose vessel T
in a through f will be 

covered by operatingdiffere

During the fiscal year the 

to the Attorney General and 

ment

exceptions

of the

as

issues

to the

involved

constru

in 

company in connection with t

and SS Constitution and t

vessels usually referred to 

involved not only the vesse

which although not directly 

with the subsidized operatio

the Attorney General the 

views on each of the items in

action was taken by the Depa

June 30 1956

Federal ship mortgage a

The Maritime Administrat

executed contracts authorizin

gage loans made by banks an

Insurance of 90 percent of 

million for conversion of 2 m

with further agreement to ins

exceed 12 million upon com

ance of 100 percent of a con

TMT Trailer Ferry Inc fo

further agreement to insure 1

the vessel upon completion o

ance of 90 percent of a mortg

struction of a steel bulk oil bar

All of the balance of the 

respect to which the former 

percent of a loan of 250 00 

tion of 3 Tuna Clippers in 19

At the close of the fiscal ye

cations for Federal loan and

a Pan Atlantic Steamship 

ships to be operated in the coa

Steamship Co for constructi

for operation in the coastwise 

Liberty Steamship Corp for 

operation in intercoastal se

the interest of national defen

pletion of 1 bulk oil tanke

operation e Puerto Rico R

construction of 2 sea trailer v

and San Juan Puerto Rico 

G7
of 2 trainships for coastwise o

Inc for construction of 2 spe

coastwise service h Centra

struction of a bulk carrier to 

i College Point Drydock an

a steel coal barge for operatio

Jackson for aid in the comple

tially constructed k Alaska 

tion of 2 train trailer ships 

between Pacific Northwest a

construction of 2 large passe

atlantic service m 4 appl

14 tankers for charter to the 

under the provisions of Pub

Other forms of constructio

During the fiscal year 1956 

Esso Shipping Co as follow

of10500 on each of 2 new 

5 obsolete vessels in the total a

being subject to adjustment fo

for use of the vessels after dat

for payment of national defen

new tankers

An agreement was reached 

providing for the tradein o

950 00 per vessel contingent 

construction of seven rollonro

tracts were not executed and 

vert C2 cargo ships in lieu of 

In connection with the con

with respect to the constructio

account of Grace Line Inc 

owner was 237 680 per vessel

In connection with the con

with Moore McCormack Line

bination vessels initially a nat

vessel or a total of 455 610 f

quently by mutual agreement 

per vessel

On June 30 1956 balances i

subsidized operators totaled 964

June 30 1955 in 9 constructio

established during the fiscal ye

funds However the total de

withdrawn prior to the close of 

Deposits in the funds during 

and withdrawals totaled 19230
1 million for the purchase o

cation to mortgage indebted

to construction costs of new 

duction in the amount availa

Operating differential su

No new operators were aw

tracts during fiscal year 19

ever there were pending be

cations for operating diffe

Bernstein Line Inc for op

Route No 8 T J McCarth

vessels on Trade Route No 

Line Inc for operation o

operated by Robin Line s p

States Steamship Co for op

30 Isbrandtsen Co Inc fo

World eastbound service 

Marine Corp for the opera

and the TriContinent serv

Of the 16 subsidized ope

sidy agreements detailed e

companies were made in pri

of Section 606 6 of the M

fiscal year 1956 detailed ex

panies had been completed 

of their operations

An operatingdifferential 

Line Inc to cover the ope

Routes Nos 2 4 23 and 25 

execution but is not to bec

January 1 1958 following 

subsidy contract and will 

31 1977 This new contra

replacement of the operatos

an estimated construction co

basis and others on a decele

An operating differentia

Moore McCormack Lines 

fleet including the new co

contract which became bind

tive for subsidy accrual un

of its current operating s

December 31 1977 This c

the replacement of the opes

at an estimated cost of 361 

others on a decelerated bas

n
An operating differential s

Oceanic Steamship Co to co

company sfour cargo vessels 

verted Mariners upon thei

Pacific and ports in Austra

January 1 1956 following t

tract by mutual agreement a

ber 17 1972 Under the prov

Maritime Board may require 

struction in replacement of t

ment cost set at 38 million w

proceed issued any time after 

A new operating differentia

American President Lines L

sidized vessels in the transp

Straits Service trade route N

1956 was made effective upo

accrual of subsidy which is 

termination date of this contra

requires the replacement of th

at an estimated construction c

of said contract In additio

require the operator to constr

operation on trade route No 2

Pursuant to the ship replac

atingdifferential contract the 

Lines Inc that they would b

estimated to cost 160 million 

purchase of five Marinertype 

requirements of the contract

During the past fiscal year t

payment of operating subsid

cover the operation on trade ro

this company had purchased 

Line Inc

During the fiscal year 1956 

ized a The United States 

type cargo vessels for operatio

between United States Atlantic 

the American President Line

subsidized operation in its Bou

Steamship Co to purchase two 

trade route No 27 and d th

chase one Mariner for subsi

Information as to the applica

struction subsidy on the reco

purchase is set forth under t

Subsidy
As of the close of the fisc

our negotiations with Lykes 

Shipping Co Inc and th

negotiations were proposed 

Lines for the execution of n

the replacement provisions 

each operator will be require

struction involving a collecti

of1007 million

Progress continued to be m

atingdifferential subsidy r

Fxcept for the item of Prote

culation of subsidy rates was 

the 838 rates applicable to th

incomplete as of June 30 1

years 1947 through 1952 hav

459 80 92net advance su

had been made This amou

the date of postwar resumpt

calendar year 1955 and the 

summary of operating subs

Aid to vessels over 20 yea

The Federal Maritime Bo

interest under section 605 b 

amended authorized throug

payment of operating subsid

will become over age prior t

ments The action of the 

was predicated upon the ship 

ating subsidy contracts ente

in the preceding section of 

panies vessels will be replac

and certain will be replaced 

ing tabulation lists by com

be continued

10
Name of operator 

trace Line IncSa

Sa

Sa

Sa

Sa

Sa

Sa

Sa

Sa

Sa

Sa

Sa

Sa

Moore McCormack Lines Inc A

B

American President LinesLtd P

P

P

P

P

P

P

Trade routes

Continued progress was m

essentiality and United State

foreign trade routes as provi

Merchant Marine Act 1936 

14 23 29 30 which were firs

completed In addition trade 

Western Europewas review

foreign commerce of the Unite

During fiscal year 1956 re

on the substantiality and exte

competition encountered durin

operators Also a substantia

final reports to the Federal M

and extent of competition en

In this connection ship itinera

lyzed as well as traffic carryi

flag lines operating outbound 

Ship 

Demand for ocean shippin

This was a year of heavy c

with respect to coal and gra

United Statesflag and foreig

coal to overseas destinations 

tons per month and grain exp

culture and International C

1 million tons in each month 

407216573
grams particularly of the D

Law 480 83d Congress with 

tion from 15 billion to 3 

heavier movements of agric

1957

As a result of a buildup 

the latter part of the fiscal y

favorable action by the Fede

vessel for 6 months trading 

cargoes mostly grain and 

temporarily for movement 

the Federal Maritime Boa

respect to an operator sappl

six Governmentowned Libe

carrying of coal transatlant

In May 1956 the Interna

plied for the breakout of 30 

fleet to assist in carrying G

ation under general agency 

States This application i

tial expenditure by the Uni

to place the 30 ships in cond

istrator concluded that the 

bareboat charter Accordin

public hearings in June to 

vessels for such purpose pu

During the hearings the rep

operators were heard and re

tional Cooperation Adminis

the General Services Adm

that a actual and imme

cargo space on Americanfla

owned vessels had not yet 

in terms of estimates and pr

cies were not then offering 

transportation at reasonabl

to be published in July 1956 

the proceeding open so that 

notice of its inability to mee

Americanflag ships might s

the need for Governmento

of the fiscal year the Boar

bareboat charter of two Vic

move grain under the ICA p

In compliance with the p

Congress the Maritime A

ExportImport Bank on sh

under the bank sloan cred

12
other Government agencies an

ping industry in order to assu

States privately owned com

financed by the Government 

Congress Studies completed 

Law 664 was beneficial to Unit

cargo not influenced by the p

and rehabilitation statutes 

amounted to 1635 000 tons 

Governmentfinanced cargo s

flag provision represented abo

by United Statesflag liner 

export cargo carried by Unit

ments subject to cargo prefere

parison with total United St

and imports by linera tramps 

that movements subject to the 

tion represented only about 5

it was evident that while the c

shipping a major portion of 

was not subject to flag restri

opportunity to participate th

freight

General agency activities

Thirtyseven vessels assigne

at the commencement of fiscal 

to 22 general agents was rea

assigned to a like number of g

Increased requirements durin

sulted in general agency oper

operated by 23 general agen

general agency operations du

requirements of the Military S

those involved in their arctic D

Grain storage

The Maritime Administrati

ment with the Department of 

national defense reserve fleet 

ment price support wheat A

located at the IIudson Rive

reserve fleet sites were loaded 

of grain Since the inception 

fleet has been utilized for the 

bushels of grain
Charters

The operation of Governme

continued to decline during 

Eleven of these were in the of

trade I was for the Pacific Co

and storage of cable in laying 

Pacific Coast and Alaska and 

interisland service In accor

gress an annual review was 

as of June 30 1955 under th

Act of 1946 as amended an

such charters was justified

One Marinertype ship wa

the transportation of bulk c

Neighbor ships remaining in 

1 year

Port development

In cooperation with the D

gineers for Rivers and Harbo

No 10 The Port of Baltimor

fiscal year were the following 

The Ports of Philadelphia P

Port Series No 8 The Port of 

River Above and Below Phi

Port of San Diego Calif an

Angeles and Long Beach Ca

Other port development ac

for the development of engin

to handle rollonrolloff type 

tive services to several Great L

and construction programs 

traffic on opening of the St L

Ship custody

At the close of the 1956 f

reserve fleets During the ye

241 were withdrawn with the 

emergency ship repair grain 

The following is a tabulation 

fiscal year 1956

Hudson River 

James River 

Wilmington 

Mobile 

14
The ship preservation prog

tations of available manpow

preservation of ships comple

of recurring preservation co

greater percentage of comple

not possible because of manp

vation personnel to other w

June 30 1956 the program f

faces of ships hulls by the ca

8 reserve fleets the program 

ing fleets by the end of fiscal 

Other activities

In cooperation with the D

study a program for the de

chemical warfare defense tra

Fortythree Maritime Admin

of other Government agencie

Shipbui

Construction

At the beginning of the 

constructed under Maritime 

were Marinerclass vessels w

Maritime Administration du

to Pacific Far East Line Inc 

struction to an Attack Cargo 

the Navy Two refrigerate

ment of the Navy were de

onrolloff cargo vessel were 

the Navy The delivery da

the rollonrolloff cargo ve

1957

During fiscal year 1956 co

of 1 cargo ship dock 2 bu

ships for the Department of 

for the construction of 2 pass

Inc and 2 passengercargo 

sections 501 and 504 of the M

The ships being construct

tracts as of June 30 1956 are 
Type Name 

T5S12a U S N S Mau Sun S

mee Dock 

TSS12a U S N S POW do 

mac

T5S12a U S N S She d

shone

T5S12a U S N S Yukon Ingalls 

03ST14a Navy TAK269 Sun S

Dock 

S2ST23a Navy TAKD1 Marylan

TIMET24aUSNAlatna Bethleh

TIMETNa U S N S Chat do 

tahoocheo

C1ME213a Navy TAK270 Avonda

ClME2 13a Navy TAK27 1 d

Cl

P2S

ME213a Navy TAK272 d

9a Passenger Ingalls S

P2S29a doIngalls S

P2S2lla Passengercargo Newpor

Dry 

P3S211a do do 

With the increase in shipb

year 1955 it was evident that 

were not being produced in qu

buildup of the proposed mariti

cal condition of the shipbuild

shipbuilding types and grades 

ponents has continued to wors

situation during the year und

lagging behind demand by ap

percent expectancy of steel a

about two thirds of the desire

equally critical with regard to 

time on turbine and gear sets c

it is now 14 to 16 months wit

Summaries of all ship const

Conversions

Three of four Mariner type 

hem Steel Co Baltimore M

Round the Worldservice were 

was scheduled for completion 

for the conversion of two oth

vessels for The Oceanic Stea

Iron and Steel Co Portland 

calendar year 1956

The initial phase of the 

improvement program was n

fiscal year Under this progr

was undertaken as follows a 

steam turbine propulsion with 

S Bushey and Sons Inc Broo

16
in August 1956 b MS Tho

sion with lengthened bow and 

lehem Steel Co BaltimoreMs

1956 c GTV John Sergea

propulsion with lengthened b

and Dry Dock Co Newport N

September 1956 and d GT

piston gas turbine propulsion 

Steel Co Baltimore Mds

1956

The major objectives of th

the initial engineering studie

realization by the end of fisca

design development complet

liminary testing of certain o

ment These objectives wer

upgrading a large number of 

defense reserve fleet for utiliz

development and comparison 

with those already established 

tion and evaluation of improv

niques and 4 determinatio

converted Liberty ships in ser

Technical developments

Under the Maritime Admin

opment and promotion of a

capable of effectively moving 

in peacetime and serving as 

war or in periods of nationa

devoted during the year to te

In the field of new ship des

four new cargo ship designs 

form suitable for solicitation 

ready for issuance during th

include the Freedom class ge

16 knots the Clipper class 

weight 18 knots Seafarer cla

weight 18 knots and the Bu

deadweight 16 knots Three 

vate naval architects under s

tion and one by the Maritim

obtained from Congress to c

in 1957

In the area of propulsion 

inaugurated an extensive stu

and economic feasibility of n

propulsion The findings of 
of nuclear energy in marine 

vantage in comparison with t

power generation fields As 

pulsion system feasibility st

dustry to submit proposals o

propulsion of merchant ship

a 20000 shaft horsepower pr

in a ship within 3 years P

reactor system the type of w

submitting the proposals whi

propulsion reactors and coul

within 5 years Four propos

posals were received on phas

A Contract Selection Boa

Maritime Administration an

set up to evaluate the phase 2 

was postponed pending co

merchant ship legislation 

would be awarded to four co

reactor system

Further in the area of pr

manufacture of an experim

were obtained and plans we

the next year

There was established a s

to that established under th

time of mobilization the m

Ships Department of the N

may be quickly and effective

peacetime construction as a

completion time and in the e

At the close of the fiscal ye

Establish a value engineer

ship construction similar to t

and in the Department of th

optical lofting of ships 

manpower savings and esta

fabrication markings on ship 

this would make possible exa

yards participating in the c

The Maritime Administrat

in the advancement of the ar

in the research activities with

butions of individual staff m

Under funds appropriated 

research and development s

ship conversion ship struc

around model testing of rep

11F
thermal stresses rollonrollo

way and nuclear ship propul

since it furnishes the means 

field of ship design

Building proposals

Invitations to bid were issu

Merchant Marine Act 1936 

oil tanker Negotiations we

building Corp Pascagoula 

and it was expected that a co

July 1956

Plans and specifications we

mortgage aid of four rollonr

Steamship Corp and the con

for the TMT Trailer Ferry In

Ship repair

Under the emergency ship 

Law 608 83d Congress 60 s

year from the reserve fleets an

awarded By the end of the 

on these ships and they wer

intent of the program was to 

of greater readiness in the e

preserve a nucleus of skilled 

The entire program includin

and 1956 resulted in adequa

of 150 ships at a cost of166793

During the fiscal year of 

agreement 257 repair inspe

repairs Full condition surve

record their condition when 

ments were made There was 

summaries submitted by 16 su

of the total of 27 million wa

One hundred and seventeen 

cost of2561 000 for repairs 

Maritime Administration wer

reasonableness of cost

Shipping St

Special studies and period

Continued efforts were direc

special reports in connection 

the Federal Maritime Board 

407216574
the Department of Defense a

Board for Ocean Shipping 

which continue to be issued 

and F

Ship cargo and labor 

The collection and process

foreign and domestic deepse

on an increased scale The inc

is reflected in the fact that 

entrances and clearances of d

during the past year which 

any previous year Data on 

United States steamship com

services during 1955 were p

operating differential subsidy 

Among the many reports c

States foreign and domestic 

Domestic Oceanborne and Gr

195154 and A Review of t

Trades and four new repor

Cargo Service and Area Rep

Differential Subsidy Under t

Acts United States and F

and Scrapped United Sta

on the Great Lakes In p

of ship operations and traff

trades on the Great Lakes 

States during calendar year 1

Seafaring employment on 

tons and over decreased to a

30 1956 reaching the lowest 

ment in the shipyards capa

increased from 38200 to 49

which shows that the numbe

ernment projects Maritime 

the number of men working 

In response to special req

including Longshore Trave

19501955 Manning and W

Collier study showing costs 

Tableeffective dates agree

tion service required for le

employment following leave 

unions showing ratings wag

20
Labor management relati

During the fiscal year col

and seafaring unions resulte

the basic monthly wages and 

unions Details with respect 

payments and other matter

employment security plan be

east coast operatorsthe fir

ments in June 1956 As a r

negotiated during the curren

various pension plans becam

made to eligible retired sea

Mari

United States Merchant M

Public Law 415 was signed 

making the United States M

institution similar to the regu

a subcommittee of the Inters

established by Senate Resolu

ing and education in the Un

mendations were that the Sta

United States Merchant Mari

institution

During the fiscal year ther

men including 9 Latin Ame

United States Merchant Ma

cadet midshipmen successfu

struction All received Uni

censes issued by the United 

third assistant engineers of o

of science degrees and comm

Naval Reserve

The 12th Congressional Bo

tion of the United States M

51955 The following serve

Maryland Samuel J Ervin 

nuson Washington ex offic

ian New York Eugene J 

Alabama Edward J Robeso

Wisconsin and Herbert C 

Among the Board sspecific r

for the Academy be establish

for attrition which will perm
deck officers and 100 enginee

to exceed 200 0 be provide

tenance of the grounds buildi

The 13th Congressional Bo

tion of the United States M

1956 The following served 

New Jersey Samuel J Erv

Payne ex officio Represe

Eugene J Keogh New York 

D Davidson New York Joh

C Bonner North Carolina e

mendations of the Board wer

tion in the amount of appro

mit the Academy to achieve 

a permanent basis and embar

program 2 steps be taken to 

tus of midshipmen to the stud

gress appropriate sufficient fu

in accord with the language 

proved April 17 1948 and a

visitors In conclusion the B

istration for its program of 

In March 1956 the Ninth M

was held at the United Sta

Board was composed of the f

Burchard dean of the Scho

Massachusetts Institute of T

vost State University of Iow

gineering George Washingto

administrative vice presiden

Wilson formerly of Vanderb

commended that status tenu

appropriate for institutions o

tion to the uniqueness of the 

moment

State maritime academies

The State maritime acade

and Hyannis Mass and the 

Fort Schuyler N Y had a

Federal pay status during t

pay status There were 277 

States merchant marine office

ant engineers from the Unit

qualified commissions as ens

22
Ship Sal

Ship sales

A total of 13 vessels of the 

for operation in the foreign 

the authority of the Merchan

of the vessels were sold to Un

President Lines Ltd and 

Pacific Far East Line Inc 

in fiscal year 1955 4 to the 

to the Pacific Far East Line

flag fleet of modern cargo sh

competition and at the same 

to the United States Treasu

Under the provisions of th

Law 665 83d Congress the 

Republic of Korea 4 Governm

AVl type The delivery of t

2 privately owned vessels an

MAV1 searly in fiscal year 

132 b 1 of the act The 

owned ships was4163 000

The SS La Guardia was s

conditioning for passenger s

provisions of Private Law 3

1955 Under Public Law 260 

1955 the SS Monterey was so

of2543 010 under an agree

10 million to recondition the 

Two ClMAV1 type carg

of S92 656 to Alaska Steams

Sound area and the Territor

629 84th Congress approved 

vessels were sold under the M

one for scrap and the other 

return of 17766 to the Gov

Transfers to foreign own

Appendix G lists applicat

andor 37 of the Shipping A

foreign ownership and or reg

citizens Of the total approve

tons such as tugs barges fish

maining 94 ships were of 100

with this latter group and pu

Maritime Administration has 

ships to other foreign nationa

tions as those which governed 
the total United Statesflag v

proved for transfer to foreign 

for transfer in consideration 

rebuilding of existing tonnag

year 2 applications for appro

owned ships of 1000 gross to

Eighteen charters of United 

were approved by the Maritim

of afFreightment and voyage 

from 1 to 15 years

Proper

Shipyards

The maintenance and secu

fiscal year at the four Gover

mington N C Richmond 

Wash At the North Carolin

50 acres of open land to the N

continued with the State ope

it has constructed thereon 

tinued to be used under perm

Navy for Reserve training

At the Richmond shipyard 

the housing of the Contra Co

of its permanent campus fo

Travis Air Force Base for in

American Red Cross and Pub

of administrative equipmen

for utilities furnished and C

the buildings used by it Th

to the Kaiser Aircraft and 

Aircraft Co Inc was cont

of certain space in the plate 

and related equipment for o

the Triple A Machine Sho

At Alameda Reserve Shi

under permit berths its ships 

reimbursement to Maritime A

At the Vancouver shipya

Administration and the Dep

the Air Force permit coverin

and some 35 buildings for the 

material The Administratio

the permittees have assumed 

within their control

PZII
Terminals and reserve tra

At the Norfolk Va termin

terminal was occupied by the 

under permits from the Admin

taining some movement of co

dled under a terminal operati

Administration The Hoboke

term lease to the Port of New 

port authority demolished p

struction of a new pier A In 

rehabilitation of pier 3

The following reflects the 

Maintenance and security pro

Reserve Training Station the 

use and maintenance of Sh

Petersburg Training Station 

and maintenance by the city o

Warehouses

The Maritime Administrat

Governmentowned warehous

Norfolk Va New Orleans L

fiscal year the stock of the s

transferred to Richmond C

was closed These warehous

vital marine equipment requ

reactivation of the vessels in 

the construction repair and 

At the end of the fiscal year 

2

administrative equipment sto

408 745

Material control invento

There were 199 ships and 

inventory certificates for co

amount of 4235 as accoun

payable Certificates of ove

the amount of 21669 as acco

payable

At the beginning of the yea

for determination as to dispo

reported from offsite location

regated and processed for u

this amount there remained 17

Surplus and excess person

having a reported acquisition 

the Maritime Administration 
and abandonments in foreign 

for which was received for

Domestic disposals amounted 

an acquisition value of17239

sition value of 723 484 was 

cies property having an acqu

health education and welfa

acquisition value of 12714 w

ceeds received from the dome

funds amounted to 194 771 

which had previously been w

losses were sold for a return o

A volume of 10441 cubic fe

cubic feet of records were tra

releasing 1586 file cabinets h

releasing over 10000 square fe

Purchasing

Purchasing was continued 

services required for the gra

programs and for the repair m

fleets reserve shipyards and t

administrative offices of the 

Procurement planning for 

ations and shipyard mobil

coordination with Departmen

production allocation agreem

facilities for the fiscal year 1

and field conferences with in

production capacity of indust

component schedules

Administra

Program and defense pla

Continued efforts were dire

viding for an orderly replace

marine These efforts durin

subsidized segment of the U

executed with 5 operators for 

efforts were expended towar

range shipbuilding program 

the tanker tradeinandbuild 

struction loan and mortgage 

Marine Act 1936 as amend

other measures that were ins

modern merchant fleet at all t

26
as to always provide it stable 

for necessary expansion in th

Considerable progress was 

including 1 Consummatio

operation during emergency 

yards 4 Maritimeowned and 

opment of plans in conjunctio

respect to coordinating the sh

the Department of Defense w

marine under the cognizance 

development of mobilization 

requirements and 4 prod

MarAdNavy Planning Gro

Deputy Maritime Administra

tary Sea Transportation Serv

ment of Defense and the Ma

and civilian requirements d

emergency

The Maritime Administrati

to the Office of Defense Mob

tions for accelerated tax am

124A of the Internal Reven

rollonrolloff ships 1 tanke

and the conversion of 1 tanke

recommendations of the Busine

for the granting of certificates 

facilities totaling 188952 w

tion endorsement A recomm

Commission on the constructio

tugs was also endorsed

Personnel

Clarence G Morse of Calif

time Board and Maritime A

President on May 31 1956 w

expiring June 30 1960 On J

President as Chairman of the 

Minetti of New York resigne

Board effective June 11 195

the Civil Aeronautics Board a

was appointed as successor fo

pires June 30 1958 Ben H 

was designated as Vice Chair

The total number of perso

ministration on June 30 1956 

percent over that reported fo

was necessary to accomplish 

vessel construction repair and 

407210575
Organization and methods

In an effort to provide for 

programs during the fiscal 

fected as were necessary re

tions The principal organiza

ment of the Office of Nationa

authorities and responsibilitie

time Administrator b tran

functions from the Office of t

ning Office with a transfer t

activities of the training prog

Manpower Officer c reorga

Office of Ship Construction a

Audits staff from the Office o

the Office of the Comptrolle

Operations with transfer fro

ping Authority of the Divisi

Custody and Division of Cha

Branch and the addition of 

created to handle functions 

and Supply fthe abolishm

ties Office of Property and 

velopment functions to the Of

of a Facilities Management 

perty and Supply to carry on 

ment functions

During the past year ther

a number of our activities in

erty management trade rou

ations nuclear projects act

facilities at the Merchant M

Security and investigation

The security program wit

the Maritime Administratio

provisions of Executive Ord

advice was given on the secu

ownership of vessels foreign 

of the Maritime Administra

of mortgaged vessels

Investigation continued t

certain purchasers of ships 

1946 as amended qualified a

these and prior investigatio

fines 15279 000in cash sett

against the Government I

reached for the construction 

in United States shipyards f

28
Seventeen regulatory inves

vities of freight forwarders fa

rebates on freight and other 

Accounting

Utilizing an accounting sy

eral of the United States a

basis and complete accurate 

financial position of the Mar

its operations were prepared 

On June 30 1956 there re

Administration agents with 

reached as to final settlemen

Of the 48 agents under Natio

inating in 1951 23 were ina

counts were either closed as 

closed and few items other 

will be outstanding for any le

Audits

Audit responsibilities were 

atingdifferential subsidy ag

and construction contracts 

sidy agreements continued to 

cluded the review of annual 

tants for years subsequent 

subsidized operators and the 

subsidy participation and pr

operators Because of pend

charter agreements settlemen

additional qualified field pers

resulted in substantial progre

year Audits of subsidizable 

through the calendar year 1

cent of accrued subsidy D

annual subsidy accountings 

of the final 10 percent of acc

for 1 operator and 1 period 

stantial progress in this con

1957 Construction contract

related subcontracts were be

fiscal year 1956 additional a

359 audits were completed le

June 30 1956 A total of195

capture due the Government 

the year
At the beginning of fiscal 

reserve funds of subsidized op

tal reserve fund and 86548 39

end of the year the amount

139 356 90in the capital res

reserve fund as shown in app

In order to aid subsidized 

funds for new construction th

to permit the operators to mak

tax deferred basis from pro

Applications for making vo

operators in a total amount o

tors totaling 10792 000 were 

which were to be processed u

policy

Internal audits

Internal audits of the financ

conducted on a continuing ba

Administration ssystem of in

in addition to the performanc

special examinations were ma

and accrued estimated operat

ability payments to seamen 

welfare and chapel funds of t

Insurance

A new contract to furnish i

nity risks was awarded as a re

tal Insurance Co Marine O

effective April 1 1956 cover

the ational Shipping Autho

Service program

During fiscal year 1956 there 

the recapture provisions of 

insurance agreement a total of 

to chute amount to 61 million r

writers and 4775 000 from 

writers As of dune 30 

underwriters are retaining a t

mum estimated requirement 

ment of tlue outstanding claims 

disposed of the last case unde

of the reserve subject to recap

Under its self insurance p

continued to assume marine 

second seamen insurance o

builder srisk insurance on ve

30
ministration for the Departm

second seamen insurance wa

Navy contract operated tank

arrangement no claims have 

are in excess of 75000 com

rates

In accordance with autho

Congress the Maritime Admin

legal liability insurance prov

partment of the Army and a 

age could not be obtained in 

prohibitive rates Under the 

that the Department of the A

ministration for any losses i

this arrangement no claim ha

During the fiscal year und

gram authorized by Public L

Merchant Marine Act 1936 a

on 721 war risk hull 652 war 

war risk second seamen and 

war risk lint 109 war risk pro

second seamen As of fine 

follows 810 war risk hall 719 

658 war risk second seamen 

of242 787 50had been receive

in fees fund expenses to the un

program

Activities under supplemen

Federal Register on Tlarch 4 

With the collection of the fin

builder srisk insurance under

vessels constructed in shipyar

tract of sale to the Pacific Fa

builder srisk policies were iss

under construction in shipyar

tract of sale to JlooreMcCorn

five war risk builder srisk po

and premiums totaling 89 13

In accordance with its ins

illaritime Administration ap

thereof generally on an ann

mercial markets by mortgago

in the following amounts

Emd of insurance 

Marine hull 

Marine protection and indem

War risk hull 

War risk protection and indemnity 
Accounts receivable

Of the balance of accounts 

approximately 20 million o

active collection efforts were 

was made tip of additional c

settlement of charter accoun

ment of Justice accrued cons

tion of ship construction m

status and accounts on the bo

general agents The fact tha

1956 totaling approximately 

less than 1 percent was outst

that billings were being colle

Claims

As of June 30 1956 there 

299 unlitigated claims havin

Government b 347 unlitiga

against the Government C 

406 in favor of the Govern

for litigation and d 698 

against the Government with 

tion The following reflects 

Admiralty Act during fiscal y

was claimed were settled in 

and b 185 upon which 854

the Government for864 121

Leg

In addition to the specifi

services and opinions were fu

the Maritime Administrator 

various operating and adm

nection with the legal aspe

agency sactivities

Legislation

Testimony statements an

and orreports and recomme

and the Director Bureau of 

legislation enacted into law 

a prototype vessel Clippe

powered ship insurance of 

construction loans and mor

Libertys prototypes and ex

ations revolving fund for ve

32
sion of Ship Repair Act of 

running of 10year recapture 

termination of subsidy contra

ation on essential trade route

ico sale of 2 warbuilt ships 

States trade provision for 

private shipping for transpo

personnel ship performance 

provision for insurees under m

administrative determination 

compensation releasing of pr

certain limitations on charter 

tanker pool tinder the Defens

excess profits under shipbuil

excess profits renegotiation a

rine Academy on a permanen

Advisory Board decorations 

of ships rebuilt abroad from 

The Maritime Administrati

sentatives with respect to the 

other pieces of legislation tes

and presented testimony for 

Formal reports were prepared 

Bureau of the Budget on 205 

500 bills were examined and 

files were maintained on 345 b

opinions histories studies a

In connection with prospe

istration was directed to mak

Federal Communications Co

desirability of automatic rad

safety devices and report to 

conjunction with the Intersta

of the Committee on Transpo

States S Report No 2802 

Contracts

A voluminous number of co

ments were drafted and exe

differential subsidy contract

tial subsidy agreements 2 co

covering 4 passengercargo v

of 2 Mariners and the recond

and the SS President Wilso

in connection with the conve

the construction of a barge a

rollonrolloff vessel contrac

the construction of 2 new tank
in connection with the constru

ardized forms of bareboat c

sels chartered under the Merc

chartered under section 705 

amended charters covering 

type vessels and 2 special ch

Powers Act covering 2 exp

vessel addenda covering th

Neighbor passenger vessels 

Philippines tinder Public 

contracts for 3 special type v

tion Service and for the con

tracts in connection with th

new bulk carrier and a rollo

of sale and mortgages cove

provisions of the 1936 act 2 

Steamship Co under the pr

gress the La Guardia under 

Congress and the Monterey 

84th Congress and certifica

transfer to the Republic of 

of 1954 Public Law 665 8

ships and 1 ship acquired 

ownership for transfer to K

Litigation

The bulk of pending litigat

Government under the Merch

cases were pending in the Co

which refunds of additional 

of warbuilt vessels for the o

Sales Act of 1946 This ca

potential claims totaling 40 

Circuit Court of Appeals 2d C

United States was of mate

decision affirmed by the Supr

the alleged invalidity of cha

jurisdiction of the district co

year Statute of Limitations 

accordingly the Governmen

cases in the same category wh

Restricting jurisdiction to th

of Limitations will result in 

being time barred with conse

Another decision of impor

by the District Court of Appe

v California Eastern Line In

charters between owners and 

34
were not renegotiable This is

estimated at 49 million and 

aggregating 85 million und

The Government has request

decision

In addition to the foregoing 

the following categories of pe

Sales Act of 1946 Claims by 

10 million for alleged class de

features claims covering 30 

ground of the invalidity of th

15 claims by citizen purchas

erroneous payments for desira

suits by aliens involving 41 ve

2 claims covering 3 ships to

claim was that involving 5 s

of 12 million concerning the 

istration may exact certain p

granting the privilege of tran

In the area of labor litiga

further liability estimated to 

cision by the Colombia Counc

covering stevedoring claims w

required reimbursement under 

settlement for less than 30000 

States District Court of Puert

ernment of approximately 6 

istration operations and rulin

of New Jersey in favor of the 

ernment was relieved of poten

contracts

Regulat

The heavy volume of cargo 

the past year held in check th

Nevertheless the roots remaine

where declining cargo offering

may be expected to reappear u

devised to stabilize the situa

of ratemaking has presented 

for recurring rate wars where 

experience has shown that th

tective devices of which the c

one available to carriers in th

The Federal Maritime Board 

lem in a continuing effort to ar

of attacks before the courts
Increased attention was 

result of crystallization duri

for the development of the S

carriers into this trade pres

ing cutrate competition wh

LakesBordeauxHamburg R

a contract rate system and b

westbound Great LakMedite

Conference and other ag

Among agreements approv

or conference agreements co

and the MediterraneanJap

and Virgin IslandsScandi

Gulf ports b 5 joint ser

ments d 5 agreements be

e an agreement covering 

from Siam to Atlantic and 

prevent instability in the rate 

affiliated rubber trades from 

The Board on its own m

respect to the competitive p

European trade and institute

and practices of the Pacific 

limitation of membership 

Gulf Freight Conference a

Conference were authorized 

the contract rate system 

Freight Conference of Japan 

The Great LakesBordeaux

ence filed a modification of its 

provision for the establishm

filed a statement announcing 

system which was pending 

the close of the fiscal year

The Board in formal proc

zation practices of the Pacif

discriminatory as to the po

meaning of section 15 Ship

commerce of the United St

Pacific Coast European Con

as including all goods of con

conference trade whether so

be a new agreement the con

of section 15 of the Shipping 

ordered to cease and desist fr

ment to the brokerage rule o

providingthat member lin

36
broker who solicits for or re

line

list

competitor

of approved

and

freight

such brok

bro

between carriers within the m

1916conference and its me

effectuating such amendment

Freight foreign

Rate filings totaled 24526 

foreign trade of the United 

ambiguities in tariff descrip

improper rate applications a

and conditions and other unla

in freight rates ranging from 

agreed upon by some 50 confe

United States Revenue res

these trades were reviewed 

unwarranted increases

The Federal Maritime Boa

issuance of a rule requiring 

amendments thereto of all in

and practices of common car

Act 1916 and engaged in the 

States including its districts 

FreightUnited States t

Freight and passenger rat

tariffs of 17 carriers embracin

the water transportation of h

highway motor carriers betw

territories

A general rate increase by 

Coast Puerto Rico Conference 

30 1956 Upon showing of g

approved 14 special permiss

rate changes on less than statu

The Federal Maritime Bo

investigation into the lawfuln

Freight Lines involving tr

between Seattle and Tacoma 

Alaska on the other with p

carriage included in the line

Terminals

A total of 1839 tariff sch

compliance with formal rulin

shipping laws
The Federal Maritime Bo

vestigation of the practices of 

Humboldt Bay area of Cali

effxan agreement prov

proper Federal Maritime B

Shipping Act 1916 and whe

17 of said act

The Federal Maritime Boa

terminal rate structure of the 

the Freas formula a method 

ing charges may be used and 

of section 17 of the Shipping 

service charge consistent with 

handling charge to be assessed 

thereof under the ocean contr

Freight forwarders

Certificates of registration 

certificates of 104 registrants 

registrants holding certificate

ing the year 19 new registrati

ing a total of 535 under Ge

complaints relative to ocean 

Significant among the forw

an agreement between some 2

the creation of a conference 

sound ethical and honora

themselves and between th

carriers by water

An extensive campaign w

who may be acting as dummi

wise obtaining brokerage unl

involving apparent violations 

hearing and 30 or more o

investigation by the Board s

to General Order 72 to clar

provide annual registration c

age provide for the filing o

the Shipping Act 1916 and 

able practices in the forward

ing the result of the investig

House Committee on Mercha

Subcommittee on Foreign Fr

Proceedings Be

At the beginning of the f

ceedings were pending Dur

38
subsidy and 7 charter or mis

a total of 39 cases The exam

18 recommended andor initia

istrator heard oral argument 

Final orders were issued by t

cases without hearing and re

various stages of procedure on 

Final decisions of the Bo

Docket No 723 Portland Oreg

bound Conference AmericanHao

equalization rule of Pacific West

criminatory to the ports of Seattle 

15 Shipping Act 1916 and found 

United States as contrary to the 

Marine Act 1920

Docket No 725The Secretary 

Atlantic Continental Freight Confe

of the Statement of Japan Atlant

General Order 76 and Docket No 

Member Lines of the North Atlant

General Order 76 Proposed excl

of the Conference approved not b

between carriers shippers exporte

from the United States and their fo

ment of the United States or to be 

Docket No 743 Inthe Matter o

ference of Japan filed under Gen

between members of the Trans Pa

an exclusive patronage contractn

unjustly discriminatory as betwee

been shown by said to justify the 

inherent in employment of an excl

rate system

Docket No 744 Terminal Rate 

Federal Maritime Board required 

Pacific Northwest ports such mo

and to establish a separate handli

receiving the benefit thereof under 

be approved when so modified

Docket No 76317toninana Prod

Motor Transport Inc Certain rate

to be in violation of section 18 Sh

Shipping Act 1933 Sections 14 a

been violated Complainant not s

to reparation

Docket No 764 Mit8ui Steamshi

Co Ltd at al and Docket No 773 

et al v American President Lines 

European Conference Shippers Ra

tract signatories sold for shipment 

f a s C I f or C f basis fou

effectuated in violation of section 
members ordered to cease and d

found to have resulted in violatio

Docket No 766Ponce Cement 

Cargo N O S and Docket N

Empty Propane Gas Tanks Pon

carrier in its operations betwee

indivisible roundtrip rates on tra

coastal Shipping Act 1933 and 

said rates not found to have vi

Act 1916 respondent sdual co

voyage not unlawful per se but 

to be unreasonable as arbitrarily 

Docket No 768 Alleged Practic

Fabre Line and of GulfMedite

sufficient to support findings tha

Shipping Act 1916 in connectio

cluding cotton from United State

nean ports in Italy and France 

in expelling Fabre Line from me

unlawful

Docket No 776Lopez Track

Docket No 779Dtand Russ

Respondent sproposed revision o

be an unreasonable regulation o

Act 1916

Docket No 538Isbrandtsen 

tion 810 Merchant Marine Act 

of the United States whose comm

Route on which service is provi

flag vessels In view of Isbrans

with foreignflag vessels on trade 

sen not found to be a citizen of 

section 810 Merchant Marine Ac

Docket No 51American P

sion to Call at all United States P

World Service United Statesfla

segments of proposed westboun

Atlantic ports other than New Yo

and additional vessels required to 

service to and from North Atla

Amerian President Lines found n

Docket No 558Arnold Be

Differential Subsidy on Trade R

AntwerpRotterdam Applicant 

Route No 8 Service No 1 wit

Marine Act 1936 and its propos

service or services United Stat

to be inadequate and in the acc

act additional vessels are requir

not a bar to granting this applic

Docket No 562Pacific Arge

tion 805 a Merchant Marine A

rion Pope Talbot Inc to Oper

The Federal Martime Board fou

unfair competition and would no

Merchant Marine Act 1936 an

operate be granted

Im
The Federal Martime Board reco

charter Governmentowned vessels 

ings and certifications to the Secr

591 Slat Congress that the servic

such service was not adequately se

flag vessels were not available for c

conditions and at reasonable rates 

Pacific Far East Line IncAppl

Vessels for Operation in Bulk Trad

iron ore from California to Japan 

Line IncApplication to Extend 

tion 6 in Docket M64 relaxed to 

vessels for additional voyages suff

Docket No M65Pope Talbot I

Government Owned War Built Dr

coastal Trade Docket No M66Ly

to Bareboat Charter Five Victory V

Service 2 and Trade Route No 1

InoApplication to Charter Fif

Vessels Vessels to carry coal from 

to Antwerp BordeauxDunkirk ran

American Steamship Co Ina Ap

Vessel for Operation on Trade Route 

Recommended decisions o

Docket No 723 Portland Orego

Westbound Conference American H

steamship services found inadequa

Wash or Portland Oreg direct to 

ouately served by a direct monthly 

Pacific Hoegh Line Practice of eq

such traffic via San Francisco fou

but not justified should Java Pacifi

Docket No 771Banano Distrib

No 775 Arthur Sehicartz v Grace 

carrier of bananas from Ecuador to 

its exclusion of complainants and 

frigerated space on its vessels on th

violation of sections 14 and 16 Sh

its existing contracts for the carriag

taken within 30 days after the Fed

and the refrigerated space on the ve

to the Atlantic coast of the United 

reasonable basis among the existing 

veners supporting complainants u

years such action to be taken withi

acts upon this decision

Docket No 772 United States A

v American Union Transport Dm 

carrier of property between United S

ports Its Tariff FMBF No 1 did 

but its Tariff FJIB No 4 filed subs

filed section 15 agreement between s

tion Inc not shown to exist Re

dismissed
Docket No 784 American Un

Gulf

allegation

Puerto

that

Rico

respondents

Conference

had

et

which had not been approved b

Complainant not shown to hav

complaint should be dismissed

In addition decisions were re

were finally decided by the Bo

the preceding section of this rep

S51S58 562 M65 M66M6

Pending proceedings

At the close of the fiscal yea

11 were initiated on the Fede

mainder were instituted by con

ship operators and others

Internation

The 7th meeting of the 

the North Atlantic Treaty 

April 1956 The Maritime 

of the United States dele

Department of State Depa

istration served Maritime 

on the various working grou

ing this meeting in London 

ity as United States Chairm

of the Senior Civil Defense 

The Maritime Administr

lishment of the Intergovern

tion which will provide an 

to discourage discriminatio

be the adminstratve agency 

and deal with such maritime 

and the transport of dang

ratified by 18 governments 

in several other countries

The Maritime Administr

of State coordinated the 

branches of the Governmen

position on agenda items of 

Conference held at San Jos

in the conference

The Maritime Administr

Department of State in p

foreign nationals in the ma

holders of United Nations 

42
program of the International 

major portion coming from L

grams were arranged with Fe

The Maritime Administrat

Department of State in unneg

ments on foreign actions deem

States shipping
cnI

mLLJ

a

cn

c

dcc

CD

M
j

m

m

9

a5

w

1z
W World War II activities 

Participation in profits of World War JI 

NET COST OF OPERATIONS note 4 

Includes reconstructiomdffferoutfal subs

e Includes expenditures of 450 805 in prior 

vessels on which no further recovery will be 

The notes to finanmal state

II

FEDERAL MARITIME BOA

DEPARTM

Statement of Operations for 

CURRENT YEAR OPERATIONS

Operating activities 

Revenues and reimbursements

Operations of National Shipping 

Chartering of vessels to others ex

tionsof National Shipping Au

Maintenance of reserve fleet vess

Maritime training program 

Operation of warehous

Maintenance of reserve sh ipyar

Total revenues and reimbur

Coats and expenses

Operations of National Shipping 

Chartering of vessels to others ex

lines of National Shipping Au

Maintenance of reserve that ve

Maritime training program 

Operation of warehouses 

Maintenance of reserve shipyar

Total costs and expenses 

Net costs and expenses income

Operations of National Shipping 

Chartering of vessels to others ex

tions of National Shipping Aut

Maintenance of reserve fleet vess

Maritime training program 

Operation of warehouse

Maintenance of reserve shipyard

Total net Costs and expenses 

Direct subsidies and cost of national defe

Estimated operatingdifferential sub

Adjustment of estimated recaptnrab

Construction differential subsidies 

Cost of national defense features 

Excess of recorded cost of vessels sold ove

and abandoned 

Administrative expensesamount alloca

Cost of repairing reserve fleet vessels 

Other income and admstments incom

Interest earned on notes and mortgag

Loss on sale of surplus materials and 

Loss on fixed assets other than vess

Net income from War Risk Insuranc

Premiums and fees on insured ship m

Miscellaneous 

Net cost of current year operations 

ADJUSTMENTS APPLICABLE TO PRIOR YEARS

Net charges arising from adjustments a

W World War II activities 

Participation in profits of World War JI 

NET COST OF OPERATIONS note 4 

Includes reconstructiomdffferoutfal subs

e Includes expenditures of 450 805 in prior 

vessels on which no further recovery will be 

The notes to finanmal state

II
FEDERAL MARITIME BOARD 

DEPARTM

Statement of Equity of the Unite

June 30 

LLANCE BEOINNINO OF YEAR 

DITIONS Funds appropriated by the Congmss fund

1624 000 transferred to the Department 

Expenditures from funds appropriated to t

for liquidation of obligations incurred ag

Rcdedmvaleof fives vessels to Jan fr

Navy in fiscal Year 1956 and 14 vessels in 

Domestic War Cost of 6 vessels repossess

1016 18064 218less mortgages outstand

Leasehold improvements to Hoboken Te

York Au0orlty net 

Leasehold improvements to the Wilmingt

by the North Carolina State Preis Auth

Equipment received from other U S Gov

Expenditures from the Payment of Cortifle

Treasury 

prior

e Tre

am 

BALANCE CLOSE Or YEAR
FEDERAL MARITIME BOA

DEPART

Statement of Sources and A

SOURCES Funds appropriated by the Congres

Proceeds from the sale of vesselsow

Collection on mortgage Iaxes receivabl

Fends provided by the Secretary of th

agast funds of the War Shipping Ad

Inventories hl reclassified as working cap

Funds provided from the Payment of C

O Cds Provided 1 the Treasury Depa

Proceeds from the sale of fixed assets ot

Contributions received for Construction 

Total funds provided 

APPLICATION

Net cost of operations per Statement o

Items considered in net cost of ope

Loss on sale of vessels 

Loss on fixed assets other than 

Income from adjustment of mo

Paymentspp the Central n

ty 

Funds OWDOd andreceiv

u 

Expenditures itures for vessels mortgageowned loansand end

Expenditures

s

for land and site develop

Lapsed appropriations transferred P

T 

an accounts

reasury ess 663 subject to refun

Materials d accountss recev

ment ncies cie Getanne

Increase in working capital during the 

Total foods applied 

Summary of C

ASSETS Cash Notes ndaccounts receiva

Accrued interest

Ageuts advanoes

Materials and supplies

Otherasset

LIABILITIES Accounts payable and other habil

Reserve Net unterminated voyage revenues e

Total

WORKING CAPITAL

Increase in working

ME
FEDERAL MARITIME BOAR

DEPARTM

Notes to Financial Stat

1 The balance sheets and the statem

e accounts of certain steamship comp

der General Agency agreements 2 Nn arnvision for loss has been ma

the following amounts with respect la

or before that date 

Domestic 

Foreign 

Total 

3 Inventories of materials and supp

sent cost or estimated cost to the A

5 Included in the Vessels Under C

with accrued construction coat of 

Department of the Nary but the value 

Navy records pending accumulation of c

minable 6 Theonlyet after oprathein completion completion suba 

amount 134 20 at June 3Q 105

be reviseded t in the light 

of the iiscontracts eThe T ntly amount p 

of6700 0 withheld fromb

construction differential

lion lion under under alln agreementmsubsidy wherebyin such con

that ay be found due the United Sta

m 

s ihl subsidy all 

several for es

664 for teasels the year The endedprovisions June 30 for es

include adjustments of approximately aS 

to pprior fiscal years

7 The Slaritime Administration w

mortgages

2

payable to a lending instit

204 167 at June 30 1955 AppIfcat

of an additional amount of7188 876 

lending institutions

a The ndmimatrntinn wan eenflatIv

a

at

66 There wer

final payment 

dednistration prio

as available during 

n56 the Administra

securities in the 

At June 30 1

ount of521400 

been accepted fro

e performance un

pry
FEDERAL MARITIME BOA

DEPART

Statement of Operations of Nati

June 

SHIPPING OPERATIONS 

Vessels operated by general agents

Terminated voyage results ermina

voyages 134956 9819551

Itevesp e

Expenses 

Gross profit from vessel opera

Chartering of vessels to othe

Total gross income from shipping ope

NONSWEPING OPERATIONS

Vessel reactivation costs 

Vessel deactivation costs expense of res

Miscellaneous expenses 

LessReimbursement of vessel reactivatio

Reimbursement of vessel deactivatio

Miscellaneous income 

Net East iuwme ofnonshipping ope

ADMINISTRATIVE EXPENSE

NET INCOME FROM OPERATIONS 

a Includes expenditures of 158 624 in con

a
FEDERAL MARITIME BOAR

DEPARTME

Statement of Operations of Natio

Ju

Intern

Coope

Total Admini

SHIPPING OPERATIONS

Revenue

Expenses sm 600 449 19

0856

345 414 522 171 6

Gross income from

shipping opera

Mass 71185 927 20 3

NONSHIPPINO OPERA

Vessel TIONS reactivation

costs

Vessel deactivation 108 583 966 78 2

costs expense of re

storing vessels to the

Miseelluneousexpenses

reserve fleet 16

2170 447

659 632 79

5

20

327 414 045 86 4

LESS Reimbursement of

vessel reactivation

costs

Reimbursement of 75319 732 48 1

vessel deactivation

N

Costs

ousbiPPmg income 15

826738 

14925 718

98 736 695 55 39

Not cost income

of nonshipping op

erations 28677 350 3

0773

ADMINISTRATIVE E4 42 508 517 10 6

PENSES TENTATIVE

PRORATION 892672 3 16

NET INCOME Loss

FROM OPERATIONS 3368105 1384

32

chargeable Vessel reactivation to chartererscosts applicable to vessels 

e Padua for materials and equipment remove

nonslnpping income at standard catalog Prices 

position Net loss from operations for account of Inte

Program being terminated on such an early date 

to amortize ship reactivation and other expenses 

mss of the monetary limitations contained in clau
52

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Summary of OperatingD

Name of operato

Ships of 1000 Gross Torts and 

July 1 

Amount and sh

Maritime A

Private and Fore

alor

Cargo

types 

For

United States

flag

flag

Tanker

United

Foreignfla

States flag

Total private and foreign acc

Grand tota

NOTE Excludes 1 Mariner and 2 cargo 

56
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Ships Approved for Transfer to 

F

Cash and Approved Securities o

Reserve Funds of Sub

Operator 

American Export Lines Inc

PRIVATELY OWN

Ships under 1000 gross tons

Commercial craft tugs barges ete

Pleasure craft over 5 tons

Undocumented motorboats 5 tons and 

Total 

Ships of1000 gross tons and over

Tankers Cargo

Cargo passenger Miscellaneous schooners dredges barg

New construction by United States shi

Goa

Total 

GOVERNMENT OW

Cargo ships

Grand total 

Cash and Approved Securities o

Reserve Funds of Sub

Operator 

American Export Lines Inc 

American Mail Line Ltd 

American President Lines Ltd 

Farrell

Grace Line

Lines

Inc

In

Gulf South American Steamship Co Inc 

Lykes Bros Steamship Co Inc 

Mississippi Shipping Co Inc 

Moore McCormack Lines Inc 

Pacific

Oceanfe

Argentine

Steamshi i

Bmail

CoTh

Line Inc 

Pacific Far East Line Inc 

Pacific Tmusigmt Lines Inc 

Seas Shipping Co Inc 

United States LinesCo 

Total 

NOTEAccmed mandatory deposits ap

Dee 31 1955 not included In the above 

applimLie to the capital reserve funds dep

excess profits

4