ANNUAL 

r Federa

Bo

M

Adm

U S DEPART

a
UNITED STATES DEP

OFFICE CO

Was

FEDERAL M

EDWARD L C

ALBERT W G

ROBERT W W

A J WILLIAM

MARITIME A

EDWARD L COCHRA

EARL W CLARE D

For sale by the Superintendent of D

Washington 25 
Letter 

UNITED STAT

W

TO THE SECRETARY OF COM

From Chairman Federa

Maritime Administrati

Subject Annual Report fo

I am submitting herewith 

and Maritime Administratio

This report is essentially th

time Commission which car

diction of the Board and A

May 23 1950 A brief intro

tant maritime developments 

C

A
Letter o

TO the Congress

I have the honor to present 

time Board and Maritime Ad

June 30 1950 including the 

Commission for the period Ju

IV
Table 

A

INTRODUCTION 

PERSONNEL 

SHIPBUILDING 

New construction 

Conversions and reconversio

Building proposals 

Technical developments 

Scientific equipment 

Maintenance and repair 

Vessel trial and guarantee su

MARITIME OPERATIONS 

Charters 

Field activities 

Reserve fleets 

Development of fleet sites 

Fleet service activities 

Vessel preservation 

Research and tests 

Large vessel sales 

Small vessel sales 

Shipyards 

Terminals 

Warehouses 

Port development 

Purchasing 

Disposal of surplus property 

Inventories 

Domestic freight traffic 

Material control 

MARITIME TRAINING 

Cadet midshipmen 

Maritime Service 

Medical program 

Seamen services 

GOVLRNMENT AIDS 

Constructiondifferential sub

Construction aid without sub

Operating differential subsid

Federal ship mortgage insura

Construction reserve fonds 

Good Neighbor charters 

dlariposa and Monterey 

Shipping data 

Transfers to foreign ownersh

Mortgages and charters 

Surrender of marine docume
vI Tab

FINANCE 

Contract renegotiation 

Internal audits and procedures 

Analysis of financial statements 

Reserve funds of subsidized ope

Operatingdifferential subsidy a

Additional charter hire 

Termination of wartime operati

Construction audits 

Accounting 

Insurance 

CLAIMS 

LEGAL ACTIVITIES 

Legislation 

Operating differential subsidy 

sales 

Labor law 

Just compensation 

Litigation and administrative h

Real property 

Tort claims 

REGULATION OF CARRIERS 

Conference and other agreement

Foreign freight rates 

Freight rates United States Te

Terminals 

Freight forwarders 

Dockets 

HEARINGS BEFORE TRIAL EXAMINERS 

Final decisions of the Commissio

Recommended decisions of trial 

Pending proceedings 

MARITIME LABOR RELATIONS 

NATIONAL AND INTERNATIONAL COOP

TABLES

Reductions

AND APPE vDICF S

in personnel 

Scientific equipment not subject 

Charters by types of service 

Charter hire receipts 

Insurance placed in American an

Appendix

AEmployrnent of United 

BMerchant fleets of the w

CDeliveries of new merc

DNumber and tonnage o

shipyards 

EProgress of construction 

tration contract 

FNew ship construction 

GBareboat chartered ves

IIVessels in reserve fleet 

IStatus of sales under M
TSBLES AND APPENDICESCcon

Appendix 

JOperating subsidy 

KSubsidy and recapt

IVessels approved f

MDeposits in capital 

NStatus of constructi

OClaims on hand 

PAppropriations tra

Y

Int

Reorganization of the United S

The end of the fiscal year 

ducted by the United States 

tion of two new agencies the 

time Administration establis

by the President sReorganiza

to correct the operating defi

inappropriate and unsound 

tion Plan did not go into e

essentially the final report of 

but includes activities of the 

period from May 24 to the e

The new organizations w

Secretary of Commerce to 

programs of the Maritime C

little break as possible in the 

maritime affairs under the a

1936 and other related legis

The Federal Maritime Boar

the President with the consen

by the President as Chairman 

the former Maritime Commis

and investigation of rates 

offshore water carriers and a

award of operating and 

regulatory matters the Board 

merce in the administration 

guided by the general policies 

The Chairman of the Fede

ministrator of the Maritime A

merce was authorized to dele

functions formerly carried on 

ically delegated to the Federa

Administrator was authorize

employees under his supervis

Provision was made in th

members to be appointed to 
2 Report of the Federal dla

departments for a period not 

appointments were made J

the Navy was appointed on 

Federal Maritime Board and 

Administration South Trim

Board of the Inland Waterw

Mather U S N Retired 

acting members of the Board

On July 28 Vice Adm Edw

Head Department of Naval 

of the Massachusetts Institute 

nent Chairman of the Board 

He took office on August 7 

other two permanent members 

California formerly President 

sociation who was appointed 

29 for a term extending to Jun

the law firm of Ober Williams 

who was nominated on Septem

for a term ending June 30 19

The Merchant Marine and nati

The United Nations action i

on the activities of the Americ

emergency heavy commitmen

American ships to transport 

dead weight tons of troop carr

one full division and its equip

States west coast to the Far E

supplies are required during 

month thereafter to support it

Rear Adm William M Calla

Military Sea Transportation S

400 transports and freighters w

other American military forces 

operated American ships of w

from the Maritime Administrs

These ships were broken out o

to private operators time chart

Service and put into operatio

22 vessels were withdrawn fro

the Military Sea Transportatio

special services

Assistant Secretary of the Na

ber that since the outbreak of 
Report of t7w Federal Maritime 

Military Sea Transportation 

passengers 1625 000 tons of 

leum products A number of 

invasion

The Korean emergency h

strongly the need for both 

United States flag and a well

availability of privately oper

needs of the armed services 

supplementary vessels from la

ervation program for reserv

with which most of these shi

18000 made available b

reserve fleet is being used to 

for immediate use in case of f

up to November 1 50 vessels 

There are not many fast d

Over 1600 of the 2098 ships 

1950 are the slow Liberty 

World War II are not ad

security in the forward areas 

is a great need for fast cargo 

mobility of our military stre

being planned by the 4aritim

with one of the large shipbu

working plans This vessel 

for peacetime service and w

use

The probable requirements 

to meet any foreseeable futu

North Atlantic Planning Boa

lished by the North Atlanti

Board represents 12 nations w

a large proportion of the wos

Board was held in June 1950 

in November This organiza

other bodies of the treaty org

shipping in defense plannin

mobilization and direction o

emergency

Shipbuilding

Planning for defense need

planning for peace needs V

their value in time of emerg
Report of the Federal M

ability or quick convertibili

to the planning for the new 

important steps have been ta

was let for the construction 

may also serve as a type of r

as their ships become obsole

Nearing completion are 

Mediterranean service The 

able under the United States 

tion of the Joint Chiefs of Sta

cargo vessels being built for 

pleted instead as troop ship

recommended that the supe

should be completed as a tr

later reconsidered and the li

planned

However other building p

cargo and cargo vessels have 

struction subsidies A three

lished shortly after the end o

of the prices at which the U

tracted to sell the passenge

private operators The com

chairman professor emeritus 

Yale University R E Gillm

and Dr Walter H E Jaege

The conditions under whic

ship lines have been the subje

of the United States who cha

by miscalculation of foreign 

ships and by overestimating 

The Government Operations 

Committee also criticized th

the review now under way 

also being made to improve t

for the estimation of constru

procedures will be worked o

ship construction projects 

industry and the Governmen

Shipbuilding activity throu

ebb during the fiscal year 

dead weight tons were built 

all tankers and all but 4 tot

operation under foreign flag 
Report of tiie Federal Maritime 

a total of 431 vessels of405

which 45 percent were built 

Employment in United State

dropped from 6308 at the be

of the year

Shipping

The general trend during th

of shipping activity under the 

United States flag oceangoin

and over totaling 13828 000 

on June 30 1950 appendix 

dead weight tons in operatio

year Employment of mer

estimated 69300 to 57250 T

the Government and chartere

by 306 vessels while private

the other hand the world s 

States increased during the 

dead weight tons appendix B

Worldwide economic distur

the decline The devaluatio

corresponding imposition of im

restrictions caused a drop in 

services Exports financed b

tration to the 17 western Eur

were approximately 30 percen

with the 1949 fiscal year Ma

normal markets to such an ext

upon the importation of bulk 

fertilizers which they had h

States

Labor disturbances among U

dock workers contributed to t

surplus of oceangoing tonnag

reductions especially in the b

to the return of many United 

boatcharter operation How

reserve for charter by privat

United Nations action in Korea 

owned vessels under charter to 

Tankers were also affected 

with 105 large United States 

in August 1949 Application
Report of the Federal Mar

Libertytype tankers were ap

to drycargo carriers The 

however and continued stron

with greater employment and 

remaining Government owned 

turned over to the Departmen

which were still in use by the 

the end of the 1950 fiscal year

Trade restrictions currency 

tonnage led to increased com

instances to discrimination aga

imposition of special fees or l

diversion of traffic to nationa

Department attempts were be

practices and at the same tim

were encouraged to use Unite

goods financed through their p

There was little change in th

trades For the most part fr

the total number of vessels be

and combination vessels were e

compared with 112 vessels in 

year The most notable cha

trade was that 40 privately o

from the Government were op

whereas there were 40 chartere

trade during the preceding ye

Alaskan shipping services w

with 10 privately owned vess

ment An experimental serv

which transported refrigerate

freight by barge drawn by tu

Public Law No 856 Eigh

of the fiscal year permitted G

chase of 10 warbuilt vessels 

verting them for use on the 

applications for eight vessels h

Authority for sale of warb

the Merchant Ship Sales Act 

1951 but activities were gr

Applications were approved fo

more approved up to Septe

beginning of the program up t

were for United States flag o
Report of the Federal Maritime 

available for sale subject to 

Liberty ships While there 

most of them were inactive o

Following is the detailed r

Maritime Commission and 

Maritime Administration dur

1950
P

The appointments of Philip 

Mellen Raymond S McKeo

J Coddaire Commissioners 

sion were terminated at the 

agency was abolished by se

Plan No 21

At the end of the fiscal yea

appointed by the President 

Chairman and South Trimb

were acting members was s

designated Acting Deputy M

A decrease of 195 percent 

year as indicated by the follo

Adminis Fiscal years ending

tmtne 

June 30 1910 2 061 

Jun030 1950 3 

Decrease 324 

Sh

New construction

At the beginning of the fisc

under construction differentia

Three combination passenger

American President Lines ro

struction by the New York S

P3S2DL2 for American E

service were under construct

Mass yard One design P6

Atlantic service was under c

building Dry Dock Co
Report of the Federal Maritime 

Keels had been laid for two 

and keels for the remaining 

One P3 and one P2 were launc

be delivered in January 1951 a

Under the provisions of title 

as amended a contract was a

Shipbuilding Corp Pascago

cargo vessel of design C3SD

advance over the design of the 

War II for production of vesse

DX1 is being built to determ

design to the end that a bas

adapted to mass production w

for this vessel was laid May 29 

Bids were received for the b

the Mississippi Shipping Co o

computing the subsidies to be 

piration of bids

A summary of the construct

E and F

Conversions and reconversion

The reconversion from war 

private operators Nvas complete

contracts for these reconversi

fiscal year and no new contra

the 1950 fiscal year

Plans were prepared for the c

permit its operation in the tra

dent Lines without wartimo wa

ted the use of this ship as a t

was abandoned

The Arnold Bernstein Line 

purchase of the S S Gen Jo

Invitations to bid on their rec

senger vessels for the North 

received As in the case of the 

operations in Korea preempted 

reconversion was abandoned

Building proposals

In the fiscal year 1948 the P

cation for financial aid for the 

ships design Q8S2DWI to 

Francisco Bids were opened 

9145N 52
10 Report of tlbe Federal 

difficulties prevented the c

award of construction contr

Under the provisions of tit

as amended the technical 

design SXDYI at the end 

a cargo vessel suitable for 

arrived at after long consu

As it result of these consu

Transportation Service and 

etc design SXDY1 was 

as design C4Sla

Informal discussions were 

Grace Line regarding their 

tions were received

Technical developments

Development of the gas tu

difficulties An experiment

the Navy was being prepar

fully completed a duplicate 

Administration

An improvement in the co

vised by the staff was furt

being prepared The finally 

on the C3SDX1

Improved types of quick

and a selected design of this 

the C3SDX1

The causes of the fractur

investigation by the ships 

sentatives of the Maritime A

American Bureau of Shippi

improvement in design prac

ship steel

Investigation of now marin

because of the need for all 

work

Inspections were made at 

outfitting equipment for rese

Four paint manufacturing p

ities under Maritime Admin

Scientific equipment

The Maritime Commission 

ommendation determining th
Report of the Federal Uariti ne 

ment as furnished by the Sperry 

used for communication and n

tations of section 505 b of 

amended Subsequently on 

similarly exempted loran rece

factured by Sperry

Sperry Gyroscope Co subm

covering equipment furnished 

the Maritime Administration d

Type and number

gtequipment Customer 

I gyropaet Nmv11rort News Shipbuil

1rY ck Co

2 gyrocompasses do 

lrnnrine radar do 

A report of profit was requ

114arch 1950 with respect to 

dated December 30 1947 cove

818 536 supplied by Sperry 

for installation on four Americ

under Maritime Contracts NM

Sperry acknowledged the reque

under the scientific equipment 

Final technical determination 

provision has not been made 

available information it appea

Sperry to Newport News and 

under the pro isions of section 

of 1936 as amended

During fiscal year 1950 th

entered into contracts or other 

b by the terms of which the 

for nationaldefense features

Maintenance and repair

Six hundred and fortysix s

repair inspections were conduc

Administration ssubsidy agreem

410 complete condition surveys 

dred and thirtyone inspections 

in accordance with Administra

during the fiscal year
12 Report of the Federal M

Complete condition survey

the Maritime Administration 

demise charter during the f

bids obtained and the perfo

vessels at an approximate to

surveys were conducted on a

vessels redelivered upon ter

demise charter and repairs 

These repairs were in the cat

tions and disputed items ne

vessels involved at an app

108 627 Plastic armor l

removed and anchors and cha

for layup at the time of red

at an approximate cost of 32

Complete condition survey

on mortgage terms under the 

were sold under terms whic

the purchaser in class ne

inspection of the vessels on 

tions prepared by the purchas

requirements of the Ameri

requirements of the United 

installations crew quarters 

the vessels to the Maritime A

screening of the specification

Maritime Administration to 

to the Government before aw

of the vessel The purchaser

of such work against the pur

the work nocessary to effect 

183 639 56

Inspections were conducte

on 23 vessels with outstand

contracts and on 24 vessels 

reconversion contracts

Vessel trial and guarantee surv

During the fiscal year six 

versions were conducted T

two American Export Lines v

Lines vessels under constructi

to set standards for eventua

arrangements were being mad

for the conducting of those tr
Report of the Federal Maritime 

Maritim

Charters

At the close of the fiscal y

or allocated for charter unde

Sales Act of 1946 as amend

corresponding total of 364 a

Four prewarbuilt passenger v

Lakes vessels and 1 ferry wer

under other authorities of la

decrease of 316 from the ov

June 30 1949

The annual overall totals 

1

Offshore trades including klaska service 

Coasts isrintercoastal 

Philippine inter island scrvice Philippine Re

Great Lakes and other scarce chartered un

Total 

4 prewar bnflt passenger vessels chartered 

among warbuilt vessels charuved for onshore 

annual report of the U c Maritime Conrmu

1949 is unaffected

Cash receipts for charter hir

1 Includes receipts during fiscal year 1950 affe

The monthly record of the n

appendix G

The Maritime Administrati

for the preparation of vessels f

This involved shifting vessels 

ment removing packing and 

ping rigging and gear storing 

Field Activities

The district offices in New Y

coordinated all field activities o

Charters Under 1111 Sales ACL 

Miscellaneous charters 

Total 

1 Includes receipts during fiscal year 1950 affe

The monthly record of the n

appendix G

The Maritime Administrati

for the preparation of vessels f

This involved shifting vessels 

ment removing packing and 

ping rigging and gear storing 

Field Activities

The district offices in New Y

coordinated all field activities o
14 Report of the Federal 

were responsible for accepti

delivering them for layup 

fleets for charter They su

ing efficiency of privately 

made field audits and rep

steamship owners operators 

public and federal organiza

The Atlantic coast distric

the surplus ship grain storag

Commodity Credit Corpor

Unable to obtain sufficient l

the use of cargo vessels in t

Cove N Y as substitute 

towing the vessels from the 

York harbor cleaning cargo 

weevils and towing back to 

The initial request for 12 

Corporation decided to exp

fiscal year 52 ships had been 

bushels of grain with a mar

cost of the project was said 

storage bins

Reserve fleets

In anticipation of the poss

as the United Nations action 

developed for the vessels tha

These vessels consisting of 

fleet were selected in coope

At the close of the 1950 

reserve fleets representing a 

year 429 vessels were taken 

vessel movements in connec

storage program two vessel

Law 370 and the remaining 

vessels in the reserve fleets as 

investment by the Govern

Appendix H shows the vesse

Development offleet sites

Nine sites harbor the vesse

Two of the sites until this y

November 29 1949 and D

and Hudson River N Y si
Report of the Federal Diaritivee B

The permanent site at Astor

tion and the fleet site facilities w

ber 1 1950

The Department of the Arm

Md continued to provide for b

and the S S Edmund B Alexand

vessels which may be withdraw

status

Fleet service activities

Fleet service activities contin

role in the overall functioning o

maintained in operation includ

Activities included transportatio

patrols guard service and prese

The safety program develop

hazardous nature of the fleet se

carried on with greater intens

latest design in goggles providin

respirators adapted for particul

to eliminate the hazards encou

and inflammable liquids and c

that each workman would have 

interiors of the vessels being pr

tion of this equipment plus ins

safety rules and regulations gre

due to accidents

The adequacy of the secur

attested by the fact that there 

Arrangements were made with 

installations to provide assista

in the event of fire

r

To insure the availability o

medicine to fleet personnel othe

on aptitude and previous experi

r

pharmacist smates of the Unit

the latter were absent from the 

Vessel preservation

It had been anticipated that 

all of the vessels in the reserve f

by the end of the fiscal year 19

vessels would be protected fro

cathodic method Events in K
16 Report of the Federal M

end of the fiscal year 1950 c

consider the necessity for 

those types of vessels that m

services in the foreseeable f

Research and tests

Tests and experiments in 

the cathodic method were co

establish that the method 

economically than other m

sisted of pioneering work in 

scale applications to vessel

highly satisfactory results 

to all reserve vessels and an 

application of the method m

Based on records and tests 

lieved that adequate protec

area of vessel hulls could be 

those areas with special com

measures it would be neces

and tests were continued 

work through which a meth

for careening sandblasting 

requires only the liberal and 

areas of an admixture of pr

wetting agent and iron ox

forms a barrier coating at 

and its adherence is such 

Through the use of this me

in the preservation of reserv

Tests and experiments w

methods now in use and to d

vation program New prod

were given consideration an

able indication that they m

Large vessel sales

During the fiscal year ap

of a net total of five vessels u

as amended All were for 

total of 1811 vessels 698 f

foreignflag operation appr

At the end of the fiscal yea

239 warbuilt vessels ava

of the Army and Navy for 
Report of the Federal Maritime B

Appendix I indicates in detail 

as of June 30 1950 The sale 

the 1946 act was discontinued 

1948

At the end of the fiscal yea

ministration applications from 

purchase of 332 vessels It was 

of these applications would rece

were for vessel types no longe

to submit qualifying financial d

qualified on the basis of the Adms

the applications had been pendi

had been shown by applicants i

for although such vessels might 

Under the authority of the 

amended a total of seven vessel

during the year all for scrappi

these sales amounted to 126 787 

for the abandonment of seven ve

losses in foreign waters Contra

were amended to permit the salv

non self propelled operation of o

hull as a sludge tank on one ve

an additional monetary return o

sales price During this perio

originally been sold for scrap w

turned 210 defaults in contra

1043 34

This brought to a total of1050 

authority of the Merchant Ma

Shipping Act of 1920 and the S

252 were sold for operation 14 

selfpropelled operation and 744 

return from these sales amoun

123 302 10 was received for cus

1043 34for metallic ballast83

ance and 2483 for sale of seve

cies Fourteen vessels were tra

other Government agencies and 

proved

Small vessel sales

During the fiscal year 16 smal

disposed of for 403 05 11 Th

to be disposed of totaled 11 T
18 Report of the Federa

types barge cargo land

subehaser tug work boa

Shipyards

The maintenance and 

fiscal year at the four Go

N C Richmond and Ala

The Military Sea Tra

granted to the United Sta

mond yard and a numbe

tration being reimbursed 

The Oceanic Steamship 

S S Mariposa and S S M

nue derived from this co

In addition the Administr

ity used by those vessels

Repair of damage to the 

of the Columbia River in 

1950

The Army and Navy w

Carolina and Richmond y

Terminals

During the fiscal year 

at Boston Mass Hobok

Va were fully devoted to 

goods The Government 

over1660 90 from the 

petitive bids resulting in 

The program of mainten

terminal properties luring 

facilities would be ready 

emergencies The progra

cial use of the Norfolk Te

Services to pay for the d

by the Army and Navy du

Warehouses

During the fiscal year 

operated at Hoboken N 

Orleans La and Richmo

Governmentowned prope

Wash were used to store 

they were in an inactive st

for the storage of vital m
Report of the Federal Dlaritinte B

in a national emergency for the re

al defense reserve fleets and the 

vessels in any such emergency

Large quantities of Governm

recovered from various offsite 

houses together with usable mat

materials were made as require

terminals and vessel operating 

disposed of as surplus property 

equipment and supplies increase

to 41279 000

A program was instituted t

cleaning removing of rust and 

repacking and restoring so as to 

usefulness of such materials 

materials valued at 11000 

A total revenue of 3196 wa

three commercial losses for portio

38 which were it excess of curr

storage space

Port development

During the fiscal year in coo

Army Board of Engineers for Ri

series reports were completed a

The ports of Hampton Roads 

Mobile Ala and Pensacola Fla 

Pascagoula Miss No 19

At the close of the fiscal year 

stages of completion Wilmington 

and Charleston S C No 13

A comprehensive study was c

and the longrange tankship bu

which the supertanker would lend 

channel depths at strategic Unite

undertaken at the request of the 

in determinations relative to 

River and Pass Laincreasing 3

Other special studies included 

merchant fleet and shipbuilding 

States shipping in Japanese cro

Administrationowned vessels em

coastal trades with special referen

and stevedoring costs to total ope
20 ItcpOrt of the Federal 

The files containing data 

used by armed services age

Purchasing

Procurement was continu

services required in the re

reserve fleets reserve ship

the repair operation and 

owned vessels and in the o

During the year 13859 

issued A total of 1608 r

were placed on warehouses 

Disposal of surplus property

During the fiscal year pe

of1348 710 51 was declare

total property valued at 156

Supply Service to other 

returned to the Maritime A

Property with a reporte

recovery of135 29 46

property with a reported 

transfer donation and aba

Inventories

During the fiscal year 5

inventory certificates amo

involving accounts receivab

vessels delivered under bar

in the amount of4952478

ernmentowned vessels an

505 63 in connection with 

to their owners

8

Six hundred and seventy

331 872 55 were proces

nection with Governmento

and 26 in the amount of 

with privately owned vess

charter

There were also processe

amounting to 43973 11in

amount of78234 82invo

Fortyeight inventory ce

were processed in connect

other miscellaneous invento
Report of the Federal Maritime 

Domestic freight tra

During the year approximat

processed in the approximate 

Government biIIs of lading we

were processed under which a

made Special rate agreement

for reductions in published rate

into thereby effecting savings in 

Material control

At the beginning of the year 

of property on which final de

disposition and another 8500 

which action toward disposit

the latter amount approxima

stored in Navy stockpiles D

through consultation with the 

material could not be identif

General Accounting Office th

Administration records

During the year 1593 437 

offsite locations and warehous

be identified segregated and pr

of which total there remained 2

Maritim

The program for training lice

to equip the American merchan

citizen personnel was continue

year Upgrading and specialis

dustry was accented in order th

be advanced in their positions a

seamen was trained for unlice

engine and steward sdepartme

radar were stressed

Cadet midshipmen

During the fiscal year an 

including 74 Filipino cadets an

training at the United States M
V2 Report of the Federal 

Point Long Island N Y 

Cadet School at Pass Chris

graduated The school at 

1950 and the 89 cadet mid

to the Academy Howev

custody status

An act of Congress ap

amended the act of May 2

ring of degrees upon gradua

emy Coast Guard Academ

provisions of this act the 

accredited academy as of 

of bachelor of sciencee upon 

The Seventh Congressi

inspection of the United S

Point on April 21 and 22 1

meeting of the Academic A

The board was composed 

U S N Retired Massac

Frederick A Middlebush U

Dodge Norwich Universi

and Science University of 

Engineering Columbia U

Indiana University and 

regent School of Foreign S

was favorably impressed w

The State Maritime Aca

Maine and Hyannis Ma

College Fort Schuyler th

cadet midshipmen in train

were graduated

Maritime Service

The United States Mar

ing refresher and specialis

head Bay N Y and A

seamen organizations and 

provided specialized traini

ment for service aboard pa

Until March 31 1950 

months course of training 

in the deck engine and s

at St Petersburg Fla an

On March 31 1950 the 

placed in a custody status 
Report of the FederaZ Maritime BO

ing vessel American Mariner wa

Merchant Marine Academy Kin

and seamen not including the pe

passenger vessels were trained an

during the fiscal year

During the year there was a cou

States Maritime Service Institu

conducted correspondence course

basic and radio subjects The M

tension courses at schools located 

and Alameda for training in radio 

school at New Orleans was closed 

Medical program

The medical program was cond

States Public Health Service M

trainees at training units and to 

other employees Seamen sheal

medical information was supplied 

ment agencies

Seamen services

During the fiscal year a total o

awarded to seamen and a total 

continuous service were issued 

a number of Mariner sMedals we

of the Interior and the Departm

were injured or deceased while se

In October 1949 war zone bar

Service Button were issued to sea

Gripsholm and Droitningholm Sw

these ships were under the contr

as exchange ships

Governm

Gonstruetiondifferential subsidy a

No contract commitments were 

structiondifferential subsidy aid 

payments were continued under 

in financing the building of two 
24 Report of the Federa

Mediterranean service of 

combination passengercar

of American President L

States for operation in the 

States Lines Co

In April 1950 American 

for construction differenti

the contemplated addition 

combination 18knot ves

berth C3combinations 

this application was defe

newly constituted Iedera

roundtheworld service 

vessels that is the three 2

and expected to be ready 

1951 and the proposed fou

Bids were obtained on 

differential subsidy aid a 

Coast of South America se

and the reconversion of 

vessels which the Arnold 

operation between United 

Belgium and the Nether

abeyance pending determ

differential subsidy applic

arrangements and admin

Other applications for c

posed of at the end of the 

of various types to improv

foreign trades served

Construction aid without su

Bids opened in the fall o

of two combination passen

tion were not accepted 

the applicant is not eligib

Government aid sought by 

to technical consultative 

the tentative approval giv

by private interests a sa

is a prerequisite to final ap

vessels upon completion 

actual cost but with mor

over a period not to excee
Report of the Federal 21aritime 

Operating differential subsidy 

Operating subsidy paymen

ators were suspended during 

resumed operation on their 

year 1946 The Commission 

all subsidized operators as of 

findings being made with res

sequently it was agreed that s

subject to these same condit

1947 and to the other 2 Janua

operating contracts had been 

operations by American Ma

Line Inc Iykes Bros Steam

Inc Seas Shipping Co Inc 

subsidy contract was execute

America for a 10year period 

tion contract was executed o

December 31 1949

No permanent postwar ope

for any subsidized operator 

cases subsistence in some ca

established and were incorpo

ferred to above subject to 

available In the meantime 

1947 1948 and 1949 not exce

due after deducting the estim

operators on the basis of these 

adjustments after the determ

determined that advance paym

year 1950 will be made

Further implementing act

subsidy payments to Americ

dent Lines Ltd Moore Mc

Cuba Mail Steamship Co t

States Lines Co as to cargo v

possible that resumption co

would be executed before the 

cargo rates were established 

and the United States Lines C

rates for the other companies 

resumption contracts were e

possible to make advance sub

during the fiscal year 1951

914599513
26 Report of the Federal Ma

It was expected that by the 

operating differential rates 

Argentine Brazil Line which 

contract in the 1949 fiscal y

then be made to this compan

Applications for operating 

companies South Atlantic 

American Steamship Line I

Diamond Steamship Corp 

Transport Lines Inc and U

required when American flag 

these routes were held on th

ship Line Inc and Arnold B

was taken on either applicat

on the Gulf South Americ

volving its existing service 

applications of Pacific Far 

Lines Inc and a hearing 

United States Lines Co At 

was taken on the application 

Progress was made in the 

improve the collection and u

ting cost information from 

operating differential subsid

development of a comprehe

procedures the inventory a

domestic cost information an

for collecting information C

ment and the General Accou

tion on their part of the pr

operating differential subsidy 

to have future foreign service 

regarding foreign operating c

In addition field investiga

methods policies and proced

ments of the Merchant Mari

be conducted in an efficient a

There were no payments 

subsidies on vessels over 20 y

Details of the postwar su

position of subsidized operato

Federal ship mortgage insuran

Three commitments outst

struction of 121 foot tuna 
Report of the Federal Maritime 

California in the fishing trade 

1950 into contracts of Federa

amount of 250 00 a total o

ever of 87499 99 were reco

thus reducing the Governms

as of June 30 1950 No ot

entered into during the fisca

insure previously issued on the 

except for an extension to No

As of July 1 1949 there wa

ship mortgage insurance fund 

the fund was credited with 0

appraisal fees and mortgage 

reduced however under aut

Congress approved August 2

a contribution to the requir

expenses of the Maritime Co

ment of 209 93 Conseque

remained in the fund a balan

Construction reserve funds

As of June 30 1950 there w

in various construction reserv

established in accordance wit

Act of 1936 which provides t

invested in new tonnage withi

To several of the operators 

deposits extensions of time w

struction or vessel acquisitio

public hearings were held in 

granted

Good Neighbor charters

The Good Neighbor Flee

S S Brazil and S S Urugua

Lines Inc prior to World W

operation on trade route No 

ports and ports on the east 

was for a 5year period and 

nection with this operation W

war purposes the 5 year cha

to run At that time the Mar

vessels to the charterer after t

pletion of the original 5year 

contract was modified to cover 
28 Report of the Federal M

the last of the three vessels 

1948 Subsequently howe

charter the first of which e

second to June 30 1951 w

or the owner could cancel 

voyages commencing after 

extensions seas to make p

fleet until a new charter cou

The invitation for bids for 

Fleet requires that every bid

this fleet with vessels to be 

bidder The former Maritim

fleet to become effective in 

operating differential subsid

subsidy is subject to the det

the Federal Maritime Boar

vessels were over 20 years o

operation until they could be 

Mariposa and Monterey

No final decision was made 

of the former passenger carg

were subsidized before the w

of the Oceanic Steamship C

these vessels prevented the 

various proposals were from 

Government A recent pro

restoration of the Dariposa 

to Australasia along with th

freighters in this service and 

the 111onterey in its incomplet

committees for consideration 

required

Shipping data

Toward the close of the fisc

ing the position of all United 

1000 gross tons and over A

erated in supplying periodic

prove to be of great value in 

The following regular repo

and in some instances were m

Merchant fleets of the wor

Employment of United St

September 30 and December 
Report of the Federal Maritime 

Deliveries of new merchant 

calendar year 1949

A monthly report of drycarg

of the Maritime Administrati

vessels

Bimonthly tabulations of ve

of the Maritime Administratio

Bimonthly reports of change

owned vessels

Bimontldy reports showing 

Administrationowned drycarg

operators and their distributio

Numerous special reports we

and for other Government ag

ment of United States flag 

world merchant fleets vessel o

cal of these was a report pre

Merchant Marine and Maritim

gross tons and over chartered 

by the Maritime Commission 

chartered under the Philippine 

type and tonnage name and n

charter party actual or proba

which employed and other ve

pared for the sane subcomm

tonnage and type all Unite

vessels registered under foreig

Under an interdepartmental 

time Administration sstatist

comparability with shipping st

agencies In addition standa

tic port classifications were pre

pating in the program

A review was undertaken o

under which the Administratio

formance reports from United 

foreign trade to provide more 

mulating policy with respect 

Approximately 25000 vessel u

individual voyages in foreign 

Just prior to the close of the fis

designed to shore port toport 

deepsea trades including the 

Traffic information reports w

changes in itineraries and freq
30 Report of the Federal M

established subsidized servi

differential subsidy applica

operated on trade routes 1 

maries and analyses were in

parties at hearings on app

trade route No I and cargo 

traffic data also were develo

with the operation of an unsu

As of the end of the fiscal 

forwarders included the na

United States citizenowned 

owned forwarding firms locat

under the terms of General O

Administration shipments an

ments This information wa

agencies concerned with the 

Transfers to foreign ownership 

Appendix L lists the appro

ping Act of 1916 as amende

vessels to foreign ownership a

the 181 transferred 136 wer

such as fishing vessels pleasur

Eighteen were vessels owned 

sels 1 tanker and 1 comme

Some of the larger vessels were 

had been declared constructiv

writers or declared menaces 

government of the country in 

Of the 28 privately owned ve

resented conditional approv

replace the vessel sold by new 

was restricted from trading to 

of years

Thirteen applications for pe

vessels to foreign ownership 

applications covering 12 war

of the Merchant Ship Sales A

In connection with congre

States flag vessels to foreign o

statements were prepared list

of all vessels sold alien the 

buyer and reasons for the sa

years
Report of the Federal Maritime 

Ten violations of section 9 

resulting from the sale alien a

States vessels without prior ap

of Justice One of these conc

ordered forfeited to the United 

a compromise offer of 27500 

quently accepted

Mortgages and charters

Four mortgages to aliens we

United States flag and owner

approved each representing a 

The 1laritime Commission 

boat charter of 18 United Sta

ferred mortgages in favor of th

Surrender of marine documents

Under the Ship 1llortgage 

proved for the surrender of t

vessels covered by preferred m

tonnage rig none home po

21 Governmentowned vessels 

lost as a result of marine casu

ferred to the Department of D

F

Contract renegotiation

Renegotiation of wartime c

year in 152 cases of which 74 

approximately 237 041 999 80

profits to the extent of 123

completed either were found 

were not subject to the provis

This brought to 507 780 032 10

and price reductions effected 

30 1950 This may be rega

for renegotiation under Publi

and title VII of the Revenue 

of any further recoveries of ex
32 Report of the FederaZ D

n

Internal audits and procedures 

During the fiscal year an 

established The staffing of 

at the close of the fiscal year 

recruited The audit report 

General Accounting Office w

Comptroller General sletter 

the creation of such a staff

Although this staff operat

rendered valuable assistance 

accounting reforms and sugg

of the General Accounting O

Analysis offinancial statemen

Financial and operating s

purchase and charter warbu

mendations Analyses were 

to be submitted periodically 

mortgage aid and by charte

and operating statements s

provisions of the Merchant M

Reserve funds of subsidized op

The funds on deposit in 

funds at the start of the yea

377 64 99 was in the capita

special reserve fund The t

the end of the year amounted 

was in the capital reserve 

reserve fund the details app

from the capital reserve fund

approximately6100 0 

to

1

the capital reserve fund s

680 00 for preliminary 

subject to recapture under o

Operating differential subsidy 

Operating differential su

accountings between the op

for the purposes of determini

required to be deposited in t

of subsidy payable to the op

There was in process of p

operators in the rendition to 
Report of the Federal lfaritime 

and final accountings along 

Supplement 21 to General Or

accountings under bareboat c

tially reduce the time heretof

accounts

Additional charter hire

Bareboat charter agreeme

time Administration of the ac

of determining the amount of 

62 contractors under the V4a

the Shipsalesdemise 303 form 

formed concurrently Of the 

were in effect during 1946 8

during 1949 There were als

charter of which 2 were in eff

1948 and 5 during 1949 T

forms of charter through Dece

30 1950 35 audits had been 

process

There was published in the 

Supplement 21 to General O

charterers in the rendition of 

out 203 and Shipsalesdemise 

procedure will substantially re

required to conduct this type 

Termination of wartime opera

As of June 30 1950 the fo

tion with the termination of 

The 10 remaining audits of 

general agents for the purpo

provisions of various forms 

orders were completed

Also completed were the t

tractors under the various m

In addition to the 54 audi

22 audits were required duri

counts and accounts of contr

contracts Of this total of 7

Sixtyone of the remainin

stevedores corder jarshipstev

Construction audits

Appendix N shows the statu

construction audit program
34 Report of the Federal ilt

Accounting

In cooperation with repr

Office an extensive program 

improving accounting proce

proved methods of internal 

resulting in increased efficien

Accounting for transaction

the control of accounts maint

district offices in New York 

permitting the release for o

Washington without increas

The decentralized accountin

tains a complete set of books 

integrated with the books in 

ing function through the reco

they originate has eliminate

the cumbersome process of t

to Washington has expedite

payment of public vouchers 

vigorous approach to the liqu

thereby expediting the closin

The accounting both in W

largely mechanized through 

lating machines A system o

was perfected whereby cum

expenses and collections by l

for use of budget and manag

fected for the recording and c

including materials and supp

for cash receipts and disburs

the elimination of seven man

lishing of five new registers 

machines thereby utilizing s

were established and the wo

ployees is now being perform

control of receivables notes 

revised and mechanized

The procedure for contro

action was taken through fiel

dite the liquidation of such a

for handling on a group ba

respect to necessary accounti

of certain items This prog

goal of closing the books of 

current transactions and item
Report of the Federal Maritime 

The work with respect to the 

which was started during the 

the fiscal year 1950 During t

accounting documents were sc

The revision and simplificat

completing of certain backlog 

personnel in the Division of Ac

perfecting the present accou

collaboration with the Genera

Appendix P lists appropria

bursements for the fiscal year

Insurance

The processing of insurance

charter construction and sub

the same basis as during the p

amount of insurance approved 

to reduction in the amounts of 

particularly noncitizens to sa

in the number of vessels under 

Progress was made in bring

gage sales to noncitizens to it 

this work would be entirely cur

conditions prevail until then

The approximate amounts o

tions placed in the American 

charterers and other contract

Type 

Marino hill 

R

Marine Protection and indemnit 

ar risk hull 

war risk Protection and indemnity 

Miscellaneous 

During the fiscal year the Go

indemnity risks on 314 vessels 

stripping and layup or breaki

vessels which were operated f

this insurance in the commerc

indicated that the premiums w

would be materially greater th

wisdom of assuming these risk

The Wartimepandi agreeme

mission and War Shipping Ad

indemnity insurance terminate
36 heport Of the Federal 

claims still outstanding E

from the insurers and to re

it was felt no claims wou

recapture provision of thes

paid by the insurers The 

35000

There were 120 shipbuild

repairs under the master s

required to comply with ins

ment of their obligations fo

Private contractors leasin

obtain approved insurance p

Concentrated effort was c

of claims for and against 

of the Maritime Commission 

A survey was completed to d

of claims and to observe and 

with a view toward elimina

dures so as to expedite th

The test checks of the settle

were proper and that the Gos

protected

The claims inventory as of 

imately 21800 claims was s

sound inventory as of June 3

a reduction of approximately 

a sound inventory of4548 c

The reduction of 17250 cla

of some 13700 individual item

tory of these claims of approx

imately 4300 claims to the 

of approximately 400 agenc

and 4 the elimination of 

claims Subsequent to May 

the Division of Claims to set

the United States as repres

provided the settlement valu
Report of the Federal Maritime 

in excess of 100 0 Claim

the Maritime Administrator f

During the year a total o

involved 5801 958 in claim

19063 812 in claims against 

recovery on claims in favor of 

55 percent and claims again

approximately 70 percent of t

Pursuant to authorization 

continuation of the program 

a mutual waiver agreement w

Finance Corporation At th

ments were being completed w

Post Office Department Ag

the State Department Gener

Administration Office of W

and Rehabilitation Adminis

The total number of vessel

for adjustment for prior sal

Merchant Ship Sales Act of 19

ing 12 vessels were subsequen

applications covering a total o

The number of vessels for w

at 141 as of June 30 1950 

been executed for 137 as of th

for which adjustments had 

covering 3 had been tentativ

Chairman Committee on M

House of Representatives for 

of applications covering 29 oth

Reprocessing of adjustment

interim adjustments had been 

basis of revised policies ado

Commission subsequent to o

application covering 1 vessel of 

quent to May 23 1950 a rev

under section 9 with particu

readjusted tradein allowance

policy guides were to be set up 

sition of the remaining cases 

cases previously processed

Iany open items appearing 

during the fiscal year Under 

time Administrator the Divisio
33 Report of the Federal H

e

the books of the general age

settlement those disputed 

for the settlement of which 

the action of its Comptrolle

liabilities A fair estimate 

liabilities which would arise 

year

Appendix O shows the num

be on hand as of June 30 19

Leg

Legislation

The authority of the Secre

to charter and sell warbuilt 

as authorized by Public Ln

June 30 1950 Sales author

Public Law 591 to January 

built drycargo vessels owned 

a limited basis in special cir

findings in accordance with s

Secretary of Commerce may 

built or not omsuant to title 

as amended No time limit o

connection with charters in 

the statute The protection 

in acting on applications for 

Extended hearings on the 

shipbuilding and shipping pro

session of the Eightyfirst Co

mittees Much statistical da

these hearings which also r

as well as analysis and extens

ation by the committees

The privilege of foreign fl

Alaskan ports until January 3

Great Lakes during the 1950 

The 50 percent United St

in the Economic Cooperation 

Assistance Act

There was unusual activi

legislation as evidenced by th
Report of the Federal Maritime 

larly to amend the Merchant 

Ship Sales Act of 1946 Legis

They covered such subjects 

standby marine risk insurance 

programs Economic Cooperat

Act amendment of the Mercha

Lakes shipping commercial op

Great Lakes tramp or irreg

merchant vessels by the milita

ship or registry court review 

Commission provisions conce

nautical schools Panama C

Seaway implementation of 

relating to maritime matters 

benefits for seamen nautical a

and navigation seamen and 

proposals affecting maritime a

Legislation was passed perta

the State of New York and 

Iaritime Service Training St

cession of jurisdiction by the S

ing the training station also f

Bay Municipal Utility Distric

the construction and operation 

under certain Governmentow

Maritime Alameda Shipyard 

Operatingdifferential subsidy 

On July 13 1949 upon co

ferences and revisions the 

adopted the standard form of p

containing standard provisions 

operators This revision was 

the contract by eliminating ob

in order to reflect postwar 

establishment of new routes 

equipment in use On Decem

the Commission approved a

necessarily employed in the b

Order 71 Part II as previou

Necessary revisions of each p

provisions applicable to each 

respect to seven operators and 

addendum were executed
40 Report of the Federal 1a

On July 1 1949 there were 

agreements in effect About 

December 31 1949 to pro

connection with the placing 

and delivery of vessels to b

agreements effective on May 

to August 31 1950 and form

service agreement bonds were 

Problems were cleared and 

the foregoing agreements a

various other agency agreem

Administration The backlo

during the postwar period wa

year this work was current

Numerous reductions wer

surety bonds posted by char

ments to reflect the redelive

considered relating to such bo

the agency agreements

Standard bareboat charte

303 entered into pursuant 

were extended to June 30 1

Eightyfirst Congress requir

visions of Public Law 343 

inventory and disposition a

chest and bunkers

Addenda were also prepare

passenger charters on the S 

Wilson and S S Wa4ingto

by Commission action A 

covering the use of the S S 

were held with representativ

the handling and disposition 

Final approval was given 

agreement

Legal details were handle

vessels for scrapping or ope

contracts bonds enforceme

lancous legal matters arisin

preparation of 10 contracts fo

transfers of title between mo

mortgage proceedings on a n

of the Republic of China wh

Legal clearance was given 

surrender of marine docume
Report of the Federal Maritime 

on which there were mortgage

flag There were 56 satisfact

in full of the outstanding deb

Labor law

Problems affecting seamen 

for wages bonuses personal 

and issues under the Second Ss

and the WSA General Agency 

tion The employee status 

United States Supreme Court 

v McAllister 337 U S 783 an

Moore McCormack Lines Inc 

tions against suits originally b

were employees of general ag

were introduced in the Eight

bring such suits under the S

effect of the McAllister decis

with California for unemploym

wages assessments thereon be

An active part was taken in 

financial interest of the Unite

of guards firemen and simila

of by judgment of dismissal 

claims remained pending outc

relief engineer suits for addit

than 300 overtimeonovertim

State and Federal courts awa

claims such as reimbursemen

arising from these suits were 

Legal aspects of collective b

tions between shipyard stea

maritime unions problems d

scales and working conditions 

vessels and injunction provis

among matters given attention 

The Maritime Administrati

of Justice and Labor and the 

nate subversive seamen from 

for voluntary action between 

Just compensation

A total of 129 claims for 

court for3646 737 42in acco

troller General and were tra

914599511
42 Peport of the Federal M

Office for approval and pa

claims involving 92 vessels 

be settled or processed for p

gation Of the cases in cou

ing 36 vessels were settled f

20 vessels were filed in the 

the close of the fiscal year 

176 vessels and totaled 759

Litigation and administrative 

At the beginning of the fis

litigated and unlitigated cas

of the year the workload wa

Pending were approxima

types of Federal State and 

to amount to 4300 0 T

final determination of litiga

amount collected for the G

cases resulting in favorable 

1freher et al v United State

the United States alleged il

involving 207500 where 

plaintiff spetition and denied 

In November 1949 the M

Practices Pertaining to Broke

of steamship conferences to 

restrictions forbiding membe

forwarders The Commisss

judge district courts in New 

heard argument on motions 

junction suspending operati

mo iona were denied In Ju

on plaintiff sapplication for 

advisement by the court

In Docket 689 an inves

between the United States P

found that some of these ope

by sea and that they had n

coastal Shipping Act

The Interstate Commerce C

Between Calitornia Oregon a

relief to Pacific coastwise co

rate adjustments The Mar

Pacific coastwise common car

Commission to require incre
Report of the Federal Dtaritime 

which were claimed to be un

interferred with the revival o

coast

Real Property

In connection with real estat

ownership and use of land by 

time Administration numero

and other legal documerts wer

ments adjustments stipulati

demnation proceedings institu

in connection with the reserv

posed of

Tort claims

Numerous claims were made 

Claims Act Four necessitate

appropriated funds These c

1 Louis E Javits Paym

New York N Y resulting fr

vehicle April 30 1949 Claim

2 United Mutual Insuranc

vehicle San Francisco Calif 

171 32

3 Airport Motors Inc P

collision of vehicle operated by 

16 1946 Jackson Heights Lo

325

4 Sholton L RouvilleP

training course at Unite Stat

Alameda Calif August 26 1

Regulatio

An increase in available ship 

resulted in a Ieveling off and a 

This situation was the cause o

of ocean carriers both confere

tated close attention and supe

visions of the Shipping Act 19

bitions of unjust discrimination

ports commodities and carrie
44 Report of the Federal M

In an effort to save dolla

issued orders or took other 

from the United States in 

practice could very seriously 

their inability to use the for

ments were made to accomp

reasonable time To meet 

of Government agencies en

the foreign governments for 

moneys to United States dol

of success but the situation c

Efforts were made to enc

containers used in foreign co

age and loss Every encou

inspection bureau established 

of weights measurements 

packaging

Conference and other agreemen

The procedure covering 

agreements received for app

which it was required for the 

in the Federal Register prior 

existed which would make s

public interest

During the fiscal year 43 

cancellations were approved 

conference membership and 

were received On June 30 

of 34 agreements 28 modifi

agreements On that date th

ments in effect and 322 other 

Approval of several propo

pending determination of litig

siveuse contract The unc

of the practice and the c

members from outside carrier

taken to prevent the dissolu

possible disastrous rate wars

The decision of the Maritim

tions against the payment of 

merce of the United States 

lawfulness of the decision
Report of the Federal Maritime 

Foreign freight rates

During the fiscal year a to

covering freight and passenger 

2300 over the previous fiscal 

All export conferences on the 

charges in their tariffs rather 

charges Inbound conference

adopt the same practice

In addition to the downwar

imposed because of delays in 

A spot check made in April 19

approximately229 reduction

There was a considerable in

other government agencies fo

and interpretation of tariffs a

Freight rates United States T

The turnover of carriers 

possessions from the continent

preceding fiscal year was not 

As a result of legislation pa

Railway Co entered the pass

vessels One new carrier filed 

Gulf ports to Puerto Rico an

indication that traffic was act

A new carrier entered the Ha

barges to replace a former car

carriers developed to serve Ha

island but they withdrew when 

status of these operators was 

During the fiscal year 558 

special permission applications 

notice were received 24 of wh

was passed to files without ac

Terminals

Progress was made toward g

rules better tariff techniques 

to the public of tariff changes 

received

Freight forwarders

Regulation of the practice

strengthened by the publicati
46 Peport of VII Federal M

dustry in the Federal Regist

of comments and suggestion

and published May 24 1950 

the industry were given 60 d

certificates of registration 

cates had been received and 

Dockets

During the year nine new c

tigation issued nine decisions 

sion were handed down and 

orders covering one dismissal 

Hearings Befo

At the beginning of the fis

tions were pending including 

cellaneous proceedings Dur

filed 14 cases were decided of 

ation and 29 were pending a

ducted hearings in 17 cases 

prepared the final order in 1 

Maritime Commission heard 

completed on a digest of vo

which was ordered to be prin

the Rules of Procedure in prep

There follows a brief outline 

recommended decisions and p

Final decisions of the Commiss

Docket No 621New Y

U S M C 157 Persons ca

correction with a common c

tices of forwarders in the mak

ceipt for goods which purports 

reasonable and unfair Need 

the Commission

Docket No 630Sigfried O

The Commission does not ha

United States under the regu

In its administrative capacity 
Report of the Federal Karitinze 

demurrage rule and charges ar

ful Pending reargument and 

time Board

Docket No 638 Waterma

U S M C 131 Responden

equal opportunity with their c

violated sections 14 Fourth an

assigned for further hearing w

to be awarded complainants

Docket No 651Carload

U S M C 137 The presen

lower than costs of service wa

other services and detrimen

rate structure not justified an

to present evidence of costs o

Docket No 657 Agreem

U S Al C 170 Provisions 

found to be detrimental to th

section 15 of the Shipping Ac

Docket No 674 Ken Royc

3 U S M C 183 Chargin

tariff charter per diem rates 

from Okinawa and Guam to 

not in violation of sections 16 

plaint dismissed

Docket No 680Himala In

187 Rate on lanolin or coc

North Atlantic Mediterranean 

sections 16 or 17 of Shipping A

Docket No 689 In the M

Transportation Between Pacifi

Hawaii Certain respondents 

Act 1933 in respect to tran

nental United States and Ha

that act by engaging in suc

tariffs with the Commission

Docket No 690In the Ma

ferences to Absorb Certain Insu

by Insurance Companies Prov

izing absorption of excess carg

unlawful or to require or jus

Shipping Act 1916 Amendm

and Windward Islands and G

provisions should in all insta
48 Report of the Federal M

of the applicable conference 

specify whether or not insura

with any limitations applica

American Hawaiian Steam

Company Applications for 

Construction Reserve Fund D

Marine Act 1936 as amende

1949 within which deposits 

shall be expended or obligat

vessels extended to Septemb

Moore McCormack Lines 

Subsidy for Good Neighbor F

flag cargo vessels and of ce

constitute foreign competitio

operating subsidy is necessa

Eastern Steamship Lines 

for Commitment of Constructi

of the Merchant Marine Act 

after

Construction

May 7

Reserve

1950 within

Fund 

struction or acquisition of ne

February 2 1952 and Marc

Pacific Argentine Brazil Li

of the Merchant Marine Act 

parent company Pope c0 T

Application granted for perm

tation of automobiles and pf

including Crescent City to 

Recommended decisions of tri

Docket No 638 Waterm

al On further hearing co

injured to the extent of 190

of 17813 22

Docket No 639Status o

ture found noncompensatory 

cost studies approved and fo

rates Decision on rates r

until after their establishme

Docket No 675Port Co

Seatrain Lines Inc Resps

portional rates and absorp

These decisions am not final but are su
Report of the Federal Maritime 

or means in violation of sectio

shown to be otherwise unlawf

Docket No 678 Increased 

Nome Alaska Respondent s

of commodities from and to po

Suspended schedules not justif

Docket No 684Isbrands

Continental Freight Conference e

contractnoncontract rate sy

Freight Conference and Co

Freight Conference should be 

Shipping Act 1916 or in co

certain provisions of the propo

violation of the act

Docket No 693 1i the H

Practices of the Parties Thereto 

panies Agreements Nos 687

special rates to oil companies 

Curacao Aruba Bonaire Ne

have not been shown to be in 

the Shipping Act 1916 or in 

and should not be disapproved

In the Matter of the Applica

to Continue Operation after D

Freight Service C2 Trade Rout

Subsidy The application sh

1 existing Americanflag serv

sidized operation diverts cargo 

unsubsidized Americanflag se

sidized services 3 applicant 

intorcoastally in AtlanticStr

Merchant Marine Act 1936 a

and convenience will be serve

and 4 operation of Atlantic 

vantageous to applicant and 

unfair competition to other A

objects and policy of said act

Decisions of the examiners in 

final reports and are referred to 

Nos 689 and 690 also Americ

Pittsburgh Steamship Company 

Applications for Extension of 

Reserve Fund Depo Nits under S

1936 as amended Moore McC
50 Report of the Federal M

Resumption of Operating D

Fleet and Pacific Argenti

Section 805 x of the Mercha

mission for its Parent Comp

Coastwise Trade A supple

684 and a report on furthe

Inc case

Pending proceedings

Docket No 691 ITnited 

Marine Corp Complaint s

assessed on shipment of cott

Docket No 692Los Ang

fornia Carloading Tariff Bur

carloaders assess a doubl

ship and rail cars

Docket No 695 Seattle 

Conference et al Complain

ports in Washington and Ore

assessed for handling cargo b

Docket No 696Feldman 

v Bogaty Hudson Shippin

connection with contract f

Poland based upon violation 

ping Act 1916

Docket No 699 Hecht 

Trading Corporation v Isb

seek reparation in connectio

tagong Pakistan to New Yo

Docket No 700 Pennsy

Philadelphia Piers Inc et a

revision of charges for use of 

allowing a maximum free tim

but 5 days to rail shippers 

storage after free time in th

for 30 days for shippers by 

Shipping Act 1916

Application of Pacific Far 

sidy Application for opera

ice 2 of Trade Route No 29 

East

Application of American P

tween California Ports and G
Report of the Federal Maritime 

under Section 805 a Merch

subsidized operator for perm

trade

The 21 other pending proce

tion or in the annual report f

Docket Nos 630 638 639 65

686 687 693 697 and 698 

sidy Case Minimum Wage C

Applicationfor Continued Opera

Straits Freight Service C2 Tr

Differential Subsidy and Pacif

Maritime 

With the exception of the 

Hawaii there were no major i

industry during the fiscal yea

did occur were either of short 

primary reason for the period 

most union agreements had be

and while providing for period

clause

As a result of the Chinese Na

Department with respect to s

maritime unions secured agree

the payment of a bonus while t

were in such waters There we

bonus of 75 percent of the basic 

third area a 100 percent bonus 

When the Korean situation 

between the maritime unions a

for the payment of a 100perce

additional areas and also increas

payable in the original three ar

ance policy was taken out on ea

The Maritime War Emergen

to prescribe and outline bonus 

that two outstanding decisionso

other with respect to bonus are

tember 30 1950 unless in the 

met and mutually agreed to ot
52 Report of the Federal V

There was a marked trend 

to seagoing personnel and l

welfare plans All major u

reached agreement with th

visions vary from union to 

ship repair firm also extend

Employment in both th

and in the maritime indust

year Employment on sea

dropped from an estimated 

June 30 1950 Employme

repair yards as reported b

dropped from 6308 emplo

year to 42538 in 82 yards at 

National and In

On June 27 1950 the Se

the Intergovernmental Mari

ized shipping agency subsid

zation will be established w

have a total tonnage of not 

have become parties to the 

the Intergovernmental Mar

is called the Transport a

United Nations acts as tem

international shipping as are 

Commission communicates 

The Interdepartmental Sh

the Maritime Administratio

from the Department of Sta

been referred to the United 

and Communications Comm

international organizations 

obtaining the views and com

as well as those of industry a

an agreed position on Unite

The committee had under c

of tonnage measurement po

tional sanitary requirements

A member of the Maritim

the President to be the Unit
Report of the Federal Draritime 

Planning Board for Ocean S

North Atlantic Treaty Counc

Planning Board is to survey sl

among the North Atlantic Pa

for the mobilization control 

shipping on a worldwide basis 

At the request of the Depa

was designated to work with a 

Administrative Conference to 

of adopting an International R

cations appearing in article 5 

Atlantic City Conference 19

also served on an advisory c

a proposed treaty between the 

motion of maritime safety on 

A member of the staff des

the United States Delegatio

of the International Labor 

Switzerland JuneJuly of 194

At the request of the Instit

ences and discussions on go

arranged for members of the 

who visited the United States 

program sponsored by the Un

Arrangements were made fo

Harbors Administration of the 

zational methods in the Unite

In collaboration with the 

were made to the French Gov

of the American Bureau of Shi

Such recognition has since bee

Discussions were conducted 

Economic Cooperation Admin

of Beira Portuguese East Afr

importation of strategic materi

taken by the Portuguese Gove

closely followed

The negotiations between th

Government concerning certa

Government were closely follo

The Department of State wa

default by any foreign gover

ments on vessels purchased un

The closest liaison with the D

to problems arising from the de
54 Report of the Federal M

Republic of China on its mo

Considerable progress was ma

of outstanding Chinese ind

taken to recover four vesse

Government in order to pro

these ships

As a result of the represe

Philippine shipping interests 

the charters on certain warb

life of the Philippine Rehab

In close conjunction with 

protests were made against 

criminating against America

the Department of State a m

in an advisory capacity to t

held in Rio de Janeiro on ce

Banco do Brasil a governme

against American flag vessel

nated to act as advisers to th

on problems affecting Americ

Budgetary limitations co

additional maritime attach 

mating foreign construction 

partment of State to certa

endeavor to increase the qu

information required for su

maintained in Japan to wor

was designated to attend th

diplomatic and consular off

Tokyo during April 1950

Collaboration was continue

Committee of the Joint Chie

Munitions Board to promot

plans for industrial mobilizat

for national defense and sec

A survey of merchant sh

Projected operations in the e

undertaken with the coopera

the National Security Resour

this survey was well on its w

Contact was maintained 

nomic Cooperation Admini

Supply Service and the De

employment of American fla

under their respective progr
Report of the Federal Maritime 

tions stockpile and foreign c

these agencies also included h

owners and operators regardin

ticular movements of such com

and quebracho extract

In response to complaints 

regarding its participation in J

the Merchant Marine Subcomm

ing the practices of SCAP a 

civilian relief GARIOA cargo 

year 1949 Reports indicated 

55 percent of the 7000 to

the United States procurement

ments in foreign areas during t

calendar year 1950 there was a

mentpurchased cargo was proc

all of it was shipped in America

movement has greatly decreased 

are now for Japanese account 

This situation coupled with th

creates competition of a seriou

Marine in the Far Eastern an

these problems was being conti

Under Public Resolution 17 

ments financed by ExportImpo

carried by American vessels ex

the Federal Maritime Board p

of the recipient countries In 

were being made to encourage t

which adversely affect United S

Membership was maintained 

interdepartmental committee 

which is to simplify visa and cu

throughout the world Contac

Cooperation Administration in 

Economic Cooperation Adminis

ing student group movements 

Interline traffic agreements o

during this period as a means 

traffic in connection with the 

submit such agreements to the M

subsidy agreements
66 Report of the Federal 

e

s

m

ax

Al a

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p 

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e

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ax

Al a

d
F

p

914599 515

F

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914599 515
pt

cA3acooad our

vp ppUUUUUGCWWWk
Report of the Federal Maritime 

ip N eOG nCCO r

W i4 n 

di0 v

Mni

va tiracuRR 

0 

Ao7 O

mg Gqe Pm a 
60 Report of the Federal M

R

b

v0

d

0

N

ti

Oti

FO

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y V

oz d

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Rep ort r

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62 Report of the Federal M

Number and deadweight tonnage 

the Maritime Administration 

30 1950

Account and vessel type

Total

Num Dea

ears

bar weigh

Maritime Administration

Major types

P3S2DL2 Constitution do 

P2SlDNI President

Drycargo

Jackson President 

Standard cargo

Combination pas

senger and cargo

Total Maritime

President do 

Administration

P2SIDN1 President do 

Private and foreign account

llayes7

16S4DSl

Major types

United 

States States 

Cargo

Lines 

Combination passenger

and cargo

Tankers 40 1065 308 

Total major types 40 1065 308 

Minor types

Otis Admmis 

Coastal cargo

Tankers

Bland tration 

Total minor types

Total private and for

eign account 40 1065 308 

Grand total 40 1065 308 

z vessels of 50859 deadweigh

peration under the Panaman

ag and I vessel of7360 deed w

4 vessels of 112 881 dead weigh

peratton under the Panamani

Progress of construction on vesse

Type Name Operator 

P3S2DL2 Independ American 

ears Export 

Lines 

P3S2DL2 Constitution do 

P2SlDNI President American 

Jackson President 

Lmes 

P2SIDNI President do 

P2SIDN1 President

Adams i

do 

llayes7

16S4DSl United United 

States States 

Lines 

C3SD1 Schuyler Maritime 

Otis Admmis 

Bland tration 

1mw vesseis were taken over oy the de

transports
Report of the Federal A7aritime 

AP

New ship construction reconditi

Num bar shipsof 

Fiscal year t747 48Program authorized

by Public Laws 269 and 862

Ships under construction

Roundthoworld

North AtlantisMediterranean 2 

Total 4 

Reconditioning and betterment

Matson Navigation Cc

Pope Talbot

Isthmhau

American

88

Export

Co

Lines

American President Lines Ltd

Now York Cuba Mail S S Co 342

17

Total maritime portion only

Reserve for changes and extras

Total appropriated for reci n ll

tioning and betterment 

Total

gram

fiscal year 194748 pro

Fiscal year 1949 program authorized

by Public Law 862

3bips under construction

Boundthe world

North Atlantic service 1 

2 Total 

Reconditioning and betterment

Farrell Lines

Mississippi Shipping Co Inc 20 

Total

Reserve for changes and extras

8

Total reconditioning and batter

Uhobligated mims balance of appropn ation

Total fiscal year 1919 program 

Fiscal year 1950 prop authorized by

Public Laws 266 and 759

Ships under construction

Title VII of Merchant Marine

Act 1936

1 

Total 

Proposed construction as of June 30

1951 New York to Caribbean

Nest coast United States 2 

4 

Pcoposedminel laneousbetterment 

Total fiscal year 1950 program 
64 Report of the Federal M

Bareboat chartered 

19

Type

June July Aug Se

30 31 31 3

Liberty 250 203 139 1

Passenger 11 11 11 

Reefer 12 12 11 

C1MAV1 19 17 17 

C3

0113 CIA 3 3 1 

C4 13 13 13 

VC2SAP2 40 42 36 

VC2SAP3 24 19 16 

N3 3 3 4 

Great Lakes 6 6 6 

Ferry I

1 I 

Total 382 330 255 

Vessels in reserve 

Fleet

July Aug S

31 31 

Astoria Oreg 165 177 

Baltimore Md 2 2 

Beaumont Tex 173 204 

Hudson River N Y 128 136 

James River Va 441 443 

Mobile Ala 249 273 

Olympia Wasb 61 fit 

Suisun Bay Cal 331 332 

Wilmington N C 421 421 

Total 1971 2050 20

Status of sales under Merchant S

Purehsse apica

approved 

United For 

States ei 

gn 

regis regra 

try try 

earVsury c

CIA S 6 

CIAM 5

373 

CID

0113

S

M

12

2 

ClSAY1 6 

23 48 

Total 01

02 refrigerated

C SAJ1 40 

C2SBl 76 4 

C2 8E1

OtherC2 4 4 

1 124 6 TotalC2

See footnote at end of table
Report of the Federal Maritime B

APPEND

Status of sales under Merchant Ship S

1950

I Subject to changing requirements of the Gov

9 One aplicant found to be in default under th

fleet i ZET1tankerfrom Liberty group not inclu

4 At present the Administration has no T2 tan

Purchase application

approved

United For

States eign Cor

rtry try try

Major typedry cargoCon

C3SA2

C3

Other

SA3

C3 7576 7

TotalC3 88 8

C4 

Total C type 235 M 29 

Passenger types

EC2 SAWL

EC25C1

ZEC2

ZETI tanker 1481122441

589 70

24

Total Liberty s 137 589 72

3013 66

34

7

6

VC2 SAP2

VC2

VC2MA4

Total Victory 43 100 14

Total major type

dry cargo and

pmsenger 416 745 161 

6 329129 392

Coastal type dry cargo

N3SA2

ClA1AV1

ClAIVI refriger

rated

CMTBU1

YF bargo 164 1

27 152 17

Total coastal type

dry cargo

443 897 1340

Total dry cargo

and passeu for 

187 203 39

Major type tankers qn

eluding ZET1

T2SEAI

T2SSA2

T3SAl

Speelal 105 3

ZETIfrom Lib

erty group 148 4

Total major type

tankers in

cluding

EM

Z

250 203 45

T1A4BT coastal

5 13 1

255 216 47

Total tankers in

cluding ZETi

698 113 181

Grand total all

types

I Subject to changing requirements of the Gov

9 One aplicant found to be in default under th

fleet i ZET1tankerfrom Liberty group not inclu

4 At present the Administration has no T2 tan
66 Report of the Federal M

Subsidized operators with extended 

Name of operator

Effec

subs

men

res

PaciHC ArgentineBxazil Line Inc 

American Mail Line Ltd Tan 

Farrell Lines Inc

South and East Africa Service d

West Africa Service Apr 

Grace Line Inc Jan 

Lykes Bros S S Co Incd

Mississippi Shipping CoInd

Seas Shipping Co Inc d

United States Lines Co

Cargo services Jan 

S S drnertca Aug 

Contract i5 subject to earlier terminat

not completed prior to each vessel reachin

1959Tentative rates for cargopassengor vess

Tentative rates for Afnca service have 

Date to which conditional extension au

Contract has expired Now contract to 

Subsidized operator with prelimin

Name of operator 

PaciHC ArgentineBxazil Line Inc 
Report of the Federal Maritime 

APPEN

Subsidized operators whose subsidy 

postwar resumption 

I Dec 

1950 

retraccons

Pending applications 

Number and t

vessels propos

Effectiv

Name at operator subsidy 

rents 

Gulf South American

resum

S S Co 

2P2carpveson

Corp

American Export Lines Ine t Jan 

APresident Lines Ltd Jan 

MooreMcCormack Lines Inc

Pacific Far East Line Ine 11C2ca

Cargo services Jan 

Rood Neighbor fleet May 1

New York Cuba Mail S S Co Jan 

The Oceanic SteamshipC0 edo

United States LinesCo Jan 1 

I Dec 

1950 

retraccons

Pending applications 

1 Suspended at request of company

Number and t

Name of applicant vessels propos

operation

Gulf South American 4 C2 cargo 

S S Co 

Arnold Bernstein S S 2P2carpveson

Corp 

South Atlantic S S 00 4C2 cargo 

Pacific Transport Line Inc 5 C3cargo 

Pacific Far East Line Ine 11C2ca

United States Lines C B VC2car

Black Diamond S S Corp t 11 VC2cargo 

1 Suspended at request of company
68 Report of the Federal Ma

i o

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Report of the Federal Maritim

Type number gross tonnage ave

ownership and orregistry and fla

amended for period July 1 194

Type 

Privately owned

Sailing vessels schooners

Tugs and barges

Pleasure vessels yachts e tc 

Tankers

Commercial vessels under 1000 gross tons s

sels eteJ

Commercial vessels over 1000 gross tons

bination cargopassenger

vessels

Nonsubsidired

Subsidized lives

lives 

Total 

Mortgage to an aien 

Government owned

Colombian

Dry cargo vessels over 1000 gross tons

Tankers Commercial vessels under 1000 gross to

Total 

Grand total 

Mortgage to an alien 

Nationality number and 

Privately 

Nationality

Number 

vessels 

British

Canadian

3 

25 

Colombian 2 

CostaRican 1 

Cuban 11 

Danish 2 

Ecuadorian 2 

French 2 

Greek 3 

Guatemalan 1 

Haitian 1 

Honduran 7 

Israeli 3 

Italian 2 

Korean 3 

Mexican New Zealand 671 

Panamanian 12 

Peruvian 2 

Saudi Arabian 3 

Turkish

Venezuelan 2 

157 

Sale alien 6 

Total

Mortgage to an alien 1634 
70 Report of the Federal M

Cash and United States Governme

special reserve funds of 

Operator 

American American Export Mail LineLinesLtdIn

American

Farrell

Grace Line

Lines

President

Inc

Inc

Lines Ltd 

Lykes Bros Steamship Co Inc 

Mississippi Shipping Co Inc 

Moore McCormack Lines Inc 

The

Now

Oceanic

York and

Steamship

Cuba Mail

Co

Steamship Co 

Seas

United

Shipping

Total

States Les

Co Inc

Co 

Status of wartime interim 

Wartime construction program

audits

Total

Ships

Reconversion Miscellaneous Facilities 

Total

Total wartime construction prwr

Interim Program

Completed audits

Ships ver Reconsion Reconversion allowances

Miscellaneous 

Total 

Incomplete audits

Ships

Reconversionallowances

Miscellaneous 

Total 

Total interim program 

Long range construction program

Incomplete audits

Ships

Miscellaneous 

Total lougranee construction nrnennn 

i Subsequent to June 30 1949 an extensive 

June 30 1949 contracts were classed as wa

This has now been changed to prior or subse

contract statistics

I Field audits were completed on these con

pleted they were referred to the Division of 
Report of the Federal Maritime 

A

Claims on ha

DIVISION OF CLAIMS

Ship Sales Procurement and Construction 

Branch 

Engineering and Operations ClaimsBra

New York section 

Technicalstaff 

Total 

OTHER OFFICES

Office of the General Counsel 

Office of Mardime Operations 

Office of the Comptroller 

Total 

Grand total 
72 Report of the Federal M

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