Third Ann

OF 

Federal Mariti

Fiscal Year End

For sale by the Superintendent of Do

Washington DC20402 
FEDERAL M

WA

JOHN HA

THOMAS 

ASHTON 

NAMES V 

JOHN S 
LETTER OF 

FEA EHAL NI

TO the Senate aud the Hour 

Pursuant to eclioo 100

of 19111 and section 200 of 

I resperlfullY submit the 

Maritime oo mission for 

TABLE Of 

HIGHLIGHTS OF THE YEAR

SCOPE OF AUTHORITY AND BAS

INTERNATIONAL COMMERCE

Carrier Agreements

Exclusive Patronage Dual Rate 

Freight Rates

International Relations

DOMESTIC OFFSHORE COMMER

Regulatory Activity

Special Studies

Noteworthy Developments in Indu

TERMINAL OPERATORS

FREIGHT FORWARDING

Licensing

Agreements

Rulemaking Proceedings

FINANCIAL AND ECONOMIC ANA

ENFORCEMENT AND COMPLIAN

Informal Complaints

Matters Referred by Antitrust Sub

on the Judiciary

Factfinding Proceedings

Field Investigations

Formal Proceedings

PROCEEDINGS BEFORE HEARING 

MARITIME COMMISSION

Final Decisions of the Commission

Decisions of Hearing Examiners

RULEMAKING PROCEEDINGS

ACTION IN THE COURTS

LEGISLATIVE DEVELOPMENTS

ADMINISTRATION

APP

A Statement of Appropriation and Ob

June 30 1964

REPOR

FEDERAL MARIT

Highlights 

The Federal Maritime Commis

important milestones and develo

marks to guide the regulatory co

shipping statutes which it admin

tial obligations under the most r

Laws 87254 and 87346 and ma

the administrative machinery for 

der the various shipping statutes

Activities Receivin

Program activity included 1 

tems 2 licensing of independe

of new agreements or modificatio

4 selected review of inbound an

the conduct of studies institution 

finding investigations and the is

ing the freight rates charged for 

ties in the foreign commerce of th

andor conferences of such carrie

enforcement programs 7 form

negotiation for elimination of d

governments against United State

tion and issuance of regulations a

of the statutes

Although substantial results we

significance was attached to the 

Commission the industry and the 

Dual Rate Contracts

Intensified effort was devoted to 

sibility for the approval of exclus

under the provisions of Public L

1961 The law authorizes such co

mission provided the contracts co
prompt release 2 notic

the carrier 4 natural r

nation by the shipper 7 

contract rate 8 exclus

other provisions not incon

require or permit The l

effect upon enactment of 

they were amended to com

mission by April 3 1962 

disapprove or modify the 

quently extended by the C

Sixtyone amended for

of formal docketed procee

agreements were publishe

June 1962 This resulted 

riers government agencie

The amended contracts 

and on April 10 1963 the 

and hearings Sixtyone 

ceedings and assilmed to 

menced on July 30 1963 

amended dual rate system

parties in the course of pr

ing examiners had issued 

On March 27 1964 the 

the decisions of the hear

thereon issued a single rep

with certain modifications 

sion by interpretive rulin

period of 90 days ending J

tember 1 1964 which per

to continue their dual rat

the new contract until suc

shipper signed a binder 

Report

At the

and

close

Orders

of the year

filed

Latin AmericanPacific C

River Plate Brazil Confe

were pending in the Unit

Circuit

In addition to the amen

87346 four new dual ra

systems were approved du

Freight Forwarder Li

Public Law 87254 ena

licensing and regulation 

On July 1 1963 there we

2
under this law During the fi

received

Of the cumulative workload of 

by issuance of licenses85 by de

cationand 106 by notification to 

approval of their applications su

Commission sintent to deny a 

applications represent a carryov

initial licensing program raider 

a 167 full field investigations 

adversely affect the qualifications 

cases contingent upon the outco

and c 108 cases in process of 

resolving issues prior to the issu

Freight Rate Disparities

Pursuant to its obligations un

sections 17 and 18b5 of the 

number of actions to guard again

inations In November 1963 an

quested certain steamship confer

foreign commerce of the United S

adjustments in freight rates wh

American exporters In this co

mal orders pursuant to the auth

Act 1916 on 38 nonconference st

and eight inbound conferences 

lines 230 carriers and the n

directed to furnish data and docu

disparity between inbound and ou

The Commission saction ivas re

ticularly the large segment repre

gaged in theUSforeign commer

of protests from foreign gover

suits in the UScourts of appea

injunctions against the effectiven

Following a formal protest to 

Managing Director of the Federa

ruary and Time 1964 in Paris 

maritime nations of Europe and 

States shipping laws the Comms

laws and the reasons the request

sary to the discharge of the Cos

shipping stat utes At the close of 

States and the foreign maritime n

settlement concerning the matter

The eight outbound conferences 

of Appeals forthe District of Colu
close of the fiscal year inju

they

motion

were

and

sought

seven cases

One

we

ca

cases for review of the Cs

ences were filed and pend

cases injunctive relief wa

voluntarily stayed the effe

In addition to the forego

formal investigations and f

rates and charges

a Docket 1155Inve

Cargo to Manila Republi

1963

b Docket 1171 Inves

Exportation of HighPres

lated Structural Compone

c Docket 1174 Inves

tilled Spirits North Atlan

stituted on March 17964

d Factfinding Investig

of Steamship Conference O

and Practices including c

1963

e Factfinding Investig

olations of the Shipping A

instituted on March 241964

f Factfinding Investig

Related Thereto instituted 

Rulemaking

The Commission during 

promulgating rules and re

istration of the provisions 

coastal Shipping Act 1933 

process during the year 

ten were published as propo

ceeding was discontinued

The six final rules conce

pulsion Provisions of Stea

Governing the Right of Ind

Policing Systems 4 Gre

of Rate Base and Income A

riers in the Domestic Offsho

pendent Ocean Freight F

Ocean Going Common Car

published rules

4
Other Significant Activitie

In other regulatory activities 

instituted on its own motion 51 

provisions of the Shipping Ac

Act 1933 issued 42 final decisio

approved under provisions of s

agreements 72 terminal agreem

cooperative working agreeme

granted 340 and denied 31 spe

or increased freight rates in adv

ated action to resolve in excess 

cluded its action with respect to 

in 42 cases in litigation before t

orders of the Commission and 

vestigations including those co

statutes and those involving the 

forwarder licenses

On March 26 1964 the Cha

sional Joint Economic Committe

committee the progress made a

sion to implement the recomm

Tune 1063 The Chairman rep

the Commission to remove discr

merce and assure the free flow 

bered by restrictive or discrimina

The Commission sfiscal year 

in subsequent sections of this rep

Special Activities of Conn

During the fiscal year the Cha

to meet with representatives of 

Japan to advise them of the Cs

in formally asking their carrier

lines

analysis

belong

of export

to furnish

and import

data de

ra

missioner also made a special tri

extensive damage to dock and h

quake in order to insure that the 

these conditions pertaining to th

is regulated by the Commission

The Chairman and members 

visits to the Commission sfield of

try to obtain current and fact

industry and the interested publi

The Chairman and Commiss

during the year explaining the as

tives These engagementsin v

755815 542
before interested groups of 

forwarders shippers and v

endeavors the Commission c

cation with the various areas 

of its concern in preserving 

Scope of Auth

The Federal Maritime C

tion Plan No 7 effective A

to administer the functions 

under the Shipping Act 1

coastal Shipping Act 1933 

The Commission is compo

terms by the President by 

no more than three member

One member is designated b

is the chief executive and 

The statutory authorities 

the following principal ar

and agreements of common 

gaged in the foreign comm

rejection or disapproval o

in the foreign commerce 3 

sifications tariffs regulatio

water in the domestic offsho

gation of discriminatory r

in the waterborne foreign 

rendering decisions issuing 

governing and affecting com

freight forwarders and oth

The broad areas of respon

the following headings

AgreementsThe Com

ments filed by common ca

terconference agreements 

tween common carriers te

other persons subject to the 

approved agreements for co

rules orders and regulation

PracticesThe Comm

carriers by water and othe

mestic offshore commerce o

common carriers in accord

statutes and the rules orde

TariffsThe Commiss

mestic offshore carriers an

commerce of the United 
accordance with the requiremen

Commission srules and regulat

the Commission has the authori

or suspend rates It approves o

plications submitted by domestic 

foreign commerce or conference

statutory andor Commission tar

LicensesThe Commission is

to persons partnerships corpor

gage in ocean freight forwarding 

Informal ComplaintsThe 

the validity of alleged or suspec

and rules and regulations of the 

water in the domestic offshore an

States terminal operators freig

ject to the provisions of the ship

concludes such complaints by ad

ings referral to the Department 

agreement between the parties

Formal Adjudicatory Proc

formal investigations on its own 

plaints pursuant to the Administr

RulemakingThe Commissio

to interpret enforce and assure c

of common carriers by water and 

Field Investigation Inspec

prescribes and administers prog

provisions of the shipping statut

cluding without limitation those 

and special reports information 

for the field investigation and au

mon carriers by water in the dom

commerce of the United States c

operators freight forwarders a

ping statutes c rate and rel

nomic studies and the preparat

trade areas the extent and nature 

and future commodity trends

Foreign DiscriminationsTh

the Department of State conduc

of discriminatory practices on the 

United Statesflag shipping

Internation

Carrier Agreements

Section 15 of the Shipping A

all agreements and modifications 

riers in the waterborne commer
rates control competition 

ports or regulate sailings 

otherwise provide for exc

arrangements be filed with 

agreements or modification

whether they are unjustly 

riers shippers exporters 

exporters and their foreig

to the detriment of the com

interest or will violate any 

mission must approve the 

hearing to determine whet

section 15 to disapprove c

cations of existing agreeme

At the close of the fiscal 

on file with and being adm

sisted of 135 conference a

ments 33 pooling agreem

shipment and miscellaneo

Activity in Processing S

At the commencement o

mission action 84 agreeme

sisting of 35 new agreemen

agreements During the 

were filed 139 new agree

mission approved 210 agre

as a result of informal dis

of the agreements and th

were in process of analysis 

The following table r

determine whether agreem

approved disapproved or 

Pending July1963 

Ordered fiscal year 1964 

Approved after hearing 

Proceedings discontinued or 

drawn 

Pending June 301964

Exclusive Patronage D

Section 14b of the Shipp

effective October 3 1961 

certain specified safegua

Ell
contract system available to a

which provides lower rates to a 

give all or a fixed portion of his 

ence Since such dual rate con

the commerce of the United State

rates that are assessed shippers a

such contracts are not discrimina

exporters and importers and tha

contrary to the public interest

Under Public Law 87346 exis

prescribed standards became un

pliance with the act were filed w

Contracts so amended were lawf

extended to April 3 1964 by Pu

the Commission was required to t

cancellation or modification

During fiscal year 1964 seven 

systems pending consideration by 

ings were terminated or discontin

54 amended forms of dual rate con

sion on March 27 1964 in the Du

parties sufficient time to review t

assure continuation of the advant

pers carriers and conferences wit

deadline of April 3 1964 the Co

which continued the dual rate c

the new contract until September 

provided the shipper signed a bi

interim period to final execution 

In addition to the contracts com

the Commission in 1964 approve

four modifications

Shippers Reque

The statute requires the Comm

after notice and hearing if it fi

refused to adopt and maintain 

and fairly hearing and considerin

In discharging these responsibi

1964 circularized all outbound co

information on the conference 

complaints Due to the reluctan

to this request the Commission s

ences which had either refused o

conferences complied with the 

them The 13 contested section 

end of fiscal year 1964
Freight Rates

The statutory requireme

rates by common carriers 

United States and confere

18bof Public Law 8734

2 1962 For the purpose 

after public notice and to 

unjustly discriminatory t

rates charges classificatio

portation of property sha

with the Commission 2 

charges classifications rul

in cost to the shipper sha

after the date of filii gwit

sion may in its discretion 

for earlier effective dates 

in cost to the shipper may 

with the Commission 3 

charge demand collect o

than that which is publis

effect 4 the Commission 

manner in which tariffs sh

to reject any tariff which is 

or the Commission sregu

hearing disapprove any r

sonably high or low as to b

States

At the start of the fiscal 

tariffs were on file with the 

there were 1967 tariffs o

were received Of these 73

for failure to comply with 

aged 25 per page at the b

646 changes per page at t

initial rates appearing on t

134 per page

Investigation of Freight 

Inbound

In keeping with its lega

and commerce of the Unit

tices and unjust discrim

steamship conferences in 

to explain or make appr

appeared to discriminate 

this request the Commissio

10
21 of the Shipping Act 1916 on 

and the corresponding recipro

Under these orders the 16 confe

were directed to furnish certain 

vant to analysis of the disparity 

Orders were directed to the 16 c

carriers comprising the member

38 nonconfe rence steamship line

conferences

North Atlantic Continental 

Continental North Atlantic 

bound

North Atlantic United King

North Atlantic Westbound 

North Atlantic Mediterrane

West Coast of Italy Sicilia

Range Conference Inbou

North Atlantic French Atla

French North Atlantic West

North Atlantic Baltic Freig

Scandinavian and BalticUS

Conference Inbound

Pacific Westbound Conferen

Trans Pacific Freight Confe

Far East Conference Outbo

Japan Atlantic and Gulf Fr

Pacific Coast European Con

Outward Continental Nor

bound

The Commission ssection 21 ord

ments related to the transporta

ties carried in the various wor

modities were selected because 

actual or potential tonnage mov

ject of protest by exporters or 

Committee of the Congress or th

This action of the Commissio

try particularly the large seg

lines Opposition came in the 

ments and in the form of revie

In due course the courts denied 

but one of the suits were still p

In view of the protests from E

ing completion of discussions w

the intent of its request the Fe

ruary 26 1964 postponed pend

the compliance date for the sect

ences and their member lines th

ferences and the nonconference 
Rate 

Further the Commissio

selected commodities to det

parities on the exportation 

merce Commodities were 

teria a Commodities mo

ment of Commerce as hav

which are subject to declin

ports c commodities whe

centage of landed costs an

were received either by the 

merce or other sources

On this basis the commo

canned meats sulfuric ac

trucks wood pulp electri

ash superphosphate fertil

zer sulfur canned fruits 

juices electrical machine

logs construction machin

motives cars and parts el

and pharmacuetical prepa

elry textile machinery b

As part of this program 

tended a number of industr

Defense Services Adminis

At some of these meetings t

ble deterrent to US expo

from shippers is being cons

veloped in connection with 

the Commission

From these meetings it w

cerned with many factors 

the export freight rate is 

significant factors which in 

ity of American exporters t

foreign import duties b 

restrictions d national 

lower cost of production in 

rates from other foreign m

rates from the United State

facturing subsidiaries by 

grams for assisting foreig

manufacturing industries 

velop domestic industries t

In general US exporte

problem of competitive fre

supply than with the lowe

12
Surcharges and 

Because of local conditions w

riers and conferences at certa

lished by the carriers and confe

erational expense The Comm

in the cost of ocean transporta

effect upon the commerce of th

in which conferences maintain

system scheduled general increa

tive the Commission took the 

not be lawfully assessed for a p

considerable number of propos

ferences to meet statutory requ

cern expressed by the Commi

Commission addressed itself we

suspend or cancel intended s

published surcharges

International Relations

Two special meetings in Eur

as continuing consultations w

Washington have marked the in

field brought about by the Fe

mentation of the United States s

The problems were intensified 

formation through section 21 ord

and inbound freight rates and 

dual rate contracts

In the two meetings in Euro

Director explained the US sh

Commission must have certain 

sion on these rate disparities

Juridical handling and patien

and it was expected that the Un

of Europe and Japan would rea

the requested information How

that much closer government co

in the future on such problems

The European shipping coun

dictional questions concerning 

of the meeting with the represen

Maritime Commission agreed th

of the seven items objected to 

tries the Commission extended 

the completion of these contracts

The major difficulty arises fro

shipping philosophies of the Un

755 810 643 
ping countries of the wor

the regulation of the water

ever the other major ship

are an attempt to unilater

cordingly they consider th

international commerce to 

rights and prerogatives T

dications that the United K

Commons a proposed law w

Federal Maritime Commiss

Fore

The Federal Maritime C

19 of the Merchant Marine 

foreign shipping discrimin

sion have close surveillance 

by foreign governments to 

criminatory provisions app

countries

Preferences granted to 

againstUSflag carriers an

pete for all cargo which ma

can cause a serious loss in re

so as to endanger the su

services

A proposed discriminator

ceive careful attention It 

sideration by the Latin Am

composed of the governme

Ecuador Mexico Paragua

tion Advisory Committee o

tion which among other th

movement of interLAFTA 

ber countries This agreem

not been approved by LAF

course of this convention c

necessary to insure an equa

ping lines to participate in 

The Federal Maritime Co

US Government agencies 

lems as well as with interna

attaches Close liaison with 

all types of international s

States The Commission m

timely action in respect to f

port charges port condition

14
and related matters which migh

services and the foreign commer

Domestic Of

The Commission regulates ra

common carriers by water that 

United States and Alaska Haw

Islands pursuant to the provisi

of 1933 and the Shipping Act 19

Regulatory Activity

Tar

The Intercoastal Shipping A

with the Commission and keep 

showing all the rates fares an

transportation between ports s

The Commission accepts or rejec

requirements of the statute and t

In fiscal year 1964 the Com

freight and passenger tariff fi

tariff pages and accepted the r

and other tariff provisions cont

the institution by the Commiss

tariff matters under investigati

Special Perm

Under the provisions of secti

of 1933 no change may be made 

tion filing and posting of new t

effective not earlier than 30 d

Commission However upon 

mission may in its discretion an

to become effective upon less tha

134 applications for special pe

drawn by the applicants

Significan

During fiscal year 1964 the 

Tariff Circular No 3 which h

significant change is the require

the first instance must file its 

days Prior to the adoption of 

to file its tariff virtually witho

mediately The Commission a

insure that the Governor of a

which includes a port served by 

rules will be furnished a copy o
special permission at the s

the Commission 2 a po

to file tariffs or tariff chang

carriers to give a brief desc

mittal and 4 amended its 

that protests to rates and ot

not later than 13 days pr

in lieu of the former 10day 

Ca

Agreements between carr

ject to section 15 of the Ship

Nineteen carrier agreeme

proved agreements were fi

ments were pending at the e

to determine whether it wo

between carriers shippers e

not operate to the detriment 

not violate any of the provis

resented the true and comp

not contrary to the public 

proved four were withdraw

the Commission and eight 

section 15 Two agreemen

gations and two are pendin

Special Studies

Studies were concluded in 

with respect to measurem

domestic offshore trades 2 

tions by Federal regulatory 

sion of section 27 of the M

transportation of lumber a

process are 1 Benefits to 

quiring certification of car

on rate matters through the 

to problems involved in ef

nonvessel operating comm

fluences of contract carriers 

rent problems with respect t

viz Puerto Rican Alaskan 

Noteworthy Developme

The 

The Good Friday earth

effect upon water transporta

16
and the State of Alaska The do

and Valdez were completely de

service to the Alaska Railbelt ar

liams Fort Bailey Chignick an

the dock and warehouse facilitie

destroyed The earthquake eme

all existing sailing schedules T

riers and State and local officials 

of water service to the disaster a

Conta

The trend toward containeri

1964 Sea Land Service Inc i

Pacific CoastAlaska trade M

Atlantic CoastHawaii service a

Hawaii containerization progra

almost completely containerized 

train Lines Inc instituted th

points in the United States and P

Termina

The Commission is responsib

of marine terminal operators pu

ping Act 1916 This entails th

under section 15 of the Shipping 

minal practices under sections 1

In carrying out this respon

1964

1 Submitted to Congress pro

a moratorium on penalties und

entered into agreements for the l

facilities where such agreements 

date of enactment of the legisla

275 was enacted on February219

2 Held oral argument on the 

875 a rulemaking proceeding 

operators to file tariffs and presc

services

3 Instituted investigations to 

No T4 City of Long Beach 

SeaLand of California Inc D

Oakland Board of Port Comm

Inc Docket No 1129 come w

Shipping Act 1916 and 2 wh

under the standards of section 15
4 Instituted an investiga

unloading practices at New 

Terminal Conference Agree

5 Held hearings in Fact

NYNorfolk Va and Ph

ing facts to determine wheth

tices at terminals are un

against truck traffic in favor 

6 Examined 3567 termin

were in conformity with the 

with an approved conferen

have been a party This r

over the number filed the pre

7 Reviewed the minutes o

mine whether any action th

ping Act or the provisions 

8 During fiscal year 1963

resenting an increase of 158

year 1963 Of the 1634 file

legislation Public Law 85 2

11 withdrawn before appro

to section 15

Terminal agreements are 

be unjustly discriminatory o

porters importers or ports 

ment of the commerce of th

and that they do not violate 

Frei

The Commission licenses 

forwarders promulgates an

proves or disapproves agre

ShippingAct 1916

Licensing

The law authorizes the C

pendent ocean freight forwa

function as such As a co

conduct sufficient investigat

finding to be made

At the beginning of fisca

and there were 896 applicat

new applications were rece

tions were denied or withd

18
Of the remaining 404 pending 

pleted on 106 23 await court a

are pending field investigations 

processing The latter pose le

which have been resolved by rule

ment of Commission policy

Agreements

Ocean freight forwarders freq

ments or cooperative working 

warder who controls the routing 

forwarder located at the port o

process one or several of the nece

ments are filed for Commission 

Shipping Act 1916

At the beginning of the fiscal 

proval and an additional 903 w

approved 40 rejected and 85 a

The number of agreements 

stitutes an increase of more tha

the previous year This increas

fication of procedures and deleg

Rulemaking Proceedings

Experience gained in the lic

ocean freight forwarders indica

amendment of the basic rules w

tices duties and obligations ap

ment of a practicable set of rul

mission to resolve many complex 

as a result of their application

During the fiscal year the C

General Order 4 Rules Govern

Ocean Forwarders Ocean Freig

Carriers and served notice of its 

General Order 4 Amendment 

April 7 1964 The amendme

warders or brokers related the

carriers for negotiating rates a

was designed to allow ocean fre

panies who have historically a

tinue to do so The effective da

it is among those rules which a

May 28 1963 of the US Cour

The Commission also propos

Such proposals would amend G
cumstances under which the 

forwarder license applicatio

the minimum financial reco

permit nonvessel operating 

as independent ocean freigh

of export shipments on whic

tions

Financial an

On October 23 1963 the 

financial reporting by carrie

ments from interested partie

17 1964 the final revised re

effective July 17 1964 By 

in the domestic offshore trade

on their assets used and th

these trades For the first t

rent financial data with resp

shore trades of carriers sub

data should be of material 

general rate cases and mak

tariffs for individual commo

Joint meetings with the I

Civil Aeronautics Board refl

ing audit accounting and st

include a uniform audit 

agencies b free interchan

three agencies to avoid du

the problems which exist w

jurisdiction over the activitie

procedures of the three age

principles to the extent prac

of uniform retention of rec

to regulation by the three age

The Federal Maritime Com

freight rates and the genera

forts were concentrated on 

trade in a wide range of s

materials semimanufacturer

mine the economic effect of 

direction of trade in these co

The Commission expects to 

of the freight rates which a

other countries as compared t

of the United States into t

are designed to assist in m

of freight rate practices ad

exports into overseas market

20
The Commission is collabo

and agencies of the Governm

export trade including the De

Agriculture Department of th

the Trade Information Comm

sentative for Trade Negotiation

In the domestic field the Co

of return and conducted spec

Puerto Rican trade and of tra

Enforcemen

Informal Complaints

One of the responsibilities o

the handling and appropriate d

protests against the rates pra

common carriers by water and 

these complaints and protests 

shippers or receivers of freigh

to give appropriate considerati

provisions of the Shipping Ac

stances the circumstances requi

adjudicatory factfinding proce

tion with respect to the compla

sufficient information and doc

by the Commission sstaff to w

ment of Justice or to initiate fo

whether violations of the act ha

quire that the Commission ins

ceedings to deal with the matters 

The Commission is also und

ports information and minute

submitted to the Commission p

ments Such review is designe

ship lines involved with their 

Commission and with the Ship

statutes as well as the rules 

Commission

In fiscal year 1964 the Com

informal complaints protests 

findings and action with respec

actions are categorized as

Complaints and Protests 

Most of these matters are b

by complaining shippers or con

reductions without resort to f
complainants are unaware 

respecting rates in the forei

dures established by steams

ering shippers complaints 

them of these procedures a

the steamship conferences o

needed rate adjustments T

informal settlement which is 

One hundred and sixtyon

in fiscal year 1964 In seve

were effected following info

Other corrective action was 

in 49 cases Complaints we

the Commission was unable 

was any basis found for form

Freigh

In some instances import

the freight rates that they 

than in the inbound trades a

to obtain a lowering of the 

During the past year th

inbound outbound freight ra

Still other such studies have 

for data and documents has 

The freight rate studies inf

cluding those involving th

documents have been discuss

Of the rate disparity sh

without affording relief to th

formal action by the Com

action was taken by the carr

formal hearing but the disp

eliminated by the conference

got underway

Loss a

Exporters shippers and 

do not settle their claims pr

allowed their claims Such 

them in these matters O

jurisdiction over loss and d

instances of this type broug

that these are matters for the 

the duty of the Commission 

appears that the carriers ar

in the matter of settling clai

Twentyfour claims matt

tention during the year C

22
in six instances No relief wa

cases and no basis was found in 

action by the Commission On

parties The remainder of thes

Steamship Pa

Passengers on ocean liners p

disappointed with respect to 

charged and seek the assistance 

tion of grievances During fisc

11 such cases In three cases i

one case was referred to the De

tion the Commission closed fou

complainant was obtained Th

Cases Involv

Pursuant to the requirements 

sion has been active in the enforc

section 18bof the Shipping 

mission reviewed 127 cases of 

inquiry and investigation on Ju

to conclusion no violation of 

32 cases were referred to the D

action was taken by carriers in 

complaints were withdrawn up

occurred

Unfiled Ca

There were 77 cases involvin

filing provisions of section 15 o

stance a determination of viola

ment of Justice In 31 instance

ing formal action or referral to t

were settled informally At yes

inquiry and investigation Ma

items arising out of the House 

1959 1960 and 1961 and possi

barred from prosecution by the s

Complaints All

Fortythree complaint cases i

or undue prejudice in violation 

ping Act 1916 Two of these c

ants in 11 instances the carrie

inquiry and investigation failed 

plainant or for formal action by 

in formal proceedings and 9 i

fiscal year
Rebate

In all 31 cases of allege

reviewed on an informal ba

were closed after inquiry a

for relief to the complain

There were 11 other cases pe

Other Co

Included in this group w

disputes as to description o

lated to shipper complaints 

57 cases in which no relief 

basis for formal Commissio

settlement in 50 cases refe

and docketed 2 for formal in

in four cases The remainin

year

Review of Con

During the year a total 

steamship conferences ope

agreements were reviewed 

surveillance of conference a

the activities of the confere

22 matters which are inclu

categories discussed above

Matters Referred by A

House Committee on t

As a result of hearings 

period 1959 through 1961 

solve 247 possible violatio

these items was virtually com

Twentysix cases have be

for prosecution as violation

in process of formal procee

dred and eightytwo matters 

of the Commission on the b

making proceedings or by a

with the statutory require

the Department of Justice 

was barred by provisions o

pose would be served by fu

mission and 3 determin

sequently developed facts n

insignificant problems which 

24
The remaining 29 matters up

has been completed are in pro

scheduled for early completion

Factfinding Proceedings

Through factfinding proceed

Commission obtains data upon 

ther action which may include 

making proceedings or 3 d

Justice

Three factfinding proceeding

quiry into the impact of confe

merce of the United States 2 

ference rates on plywood were 

commerce or prejudicial to Ame

and practices related thereto T

interest of the Commission in o

ticularly its attempt to elimina

the movement of the American g

The general investigation of c

by the fact that since passage o

investigation of conference rates 

Congress or this Commission s

vestigation was to provide the C

ord regarding conference ratem

place it in the position to eithe

priate legislative recommendatio

The investigation of the plywo

from the plywood industry whic

rates on that commodity were 

exports

Factfinding proceedings with 

Atlantic ports have been comp

pared Hearings in a similar 

lantic and Gulf ports will comme

Field Investigations

There were 783 active investig

Of these cases 697 involved oc

cants and the remainder consis

ventions of shipping laws D

opened and 831 investigations 

these cases pertained to ocean fr

Investigative activity resulte

tions of the shipping statutes 

convictions were based upon ple
tionally 11 shipping entiti

ment of Justice paid 492

which are of a civil nature 

pending in the Federal cou

appropriate action 10 case

criminal violations and 25 

for violations of the shippi

Forneal Proceedings

The Commission on its 

formal proceedings involvi

resents the most ambitious 

undertaken More importa

not interfere with the Coms

109 cases completed this y

for the Commission but by 

regulatory matters by any 

year period The status o

ceedings is indicated below

Proceedings B

and Federal 

At the beginning of the 

before the hearing examine

year 179 cases 5 cases were 

a total of 320 proceedings 

issued 131 recommended or 

24 oral arguments involvin

cisions involving 120 form

year there were 33 proceed

mission

26

Investigations

Section 15 

Sections 14 16 17 

Section 18b5 

Dual rate contracts 

Freight forwarder licensing 

Rate proceedings 

Ralemaking 

Totals 

Proceedings B

and Federal 

At the beginning of the 

before the hearing examine

year 179 cases 5 cases were 

a total of 320 proceedings 

issued 131 recommended or 

24 oral arguments involvin

cisions involving 120 form

year there were 33 proceed

mission

26
Final Decisions of the Com

Docket No 782II Rempner v 

Docket No 733II Ifempner v Ly

No 734 Galveston Cotton Compa

Docket No 7351Cotton Ind

al The Commission issued two f

complaints against certain respond

Docket No 805 Parsons Whitte

Johnson Line Docket No 809 

Generale Transalantique French 

more Inc v The Blue Star Line Lt

Whittemore Inc v Furness W

812Parsons Whittemore Inc v 

Docket No 813 Par8ons Whitte

Line It was determined that t

Coast European Conference was ne

Act 1916 and therefore was unla

here that complainant evaded its 

ment by using a subsidiary to ship 

authority to award reparations und

accordingly reparations are denied 

the circumstances here

Docket No 827 Sub No 1Phil

biana SA On rehearing on rema

injured to the extent of 106 01 b

space to complainant for the carriag

Docket No 873Investigation of 

Travel Agents It was determined 

Steamship Conference and the Tra

violated section 15 of the act in ce

thereto were ordered

Docket No 936Ilellenie Lines 

It was determined that responden

act in charging different rates t

service that respondent sagent wa

charging the rates that intent is n

sections 16 first and 17 of the a

and administrative statute evinces 

respondent may not evade its respo

of its agent sactivities

Docket No 947 International 

International Trading Corporation 

Inc On further proceedings it wa

to the extent of 11778 99 by ress

the Act

Docket No 969 Alaska Steams

the Peninsula and Bering Sea Ar

Coneunercial Co River LInes Ce

Area of Alaska It was determine

were unjust and unreasonable to 

ship Co It rate of return in excrss 

Docket No 1000 California Ste

vators Inc It was determined th

by engaging in the unreasonable p

lished rental charge for the use of 

markup which included its profit o

specifically to apply against the sh

assess the charge against its subcon

against complainants who are compe
Docket Nos 1001 1002 1003 1

1031 1033 1034 1035 1037 10

1111The Dual Rate Cases Th

contracts in accordance with th

proceeding

Docket No 1061BalNey Dun

poration The Oommission adop

missing the complaint on groun

constitute a violation of section 17 

Docket No 1070 Selden Co 

Wharves The complaint was d

per se for a terminal to increase 

to or received by the terminal

Docket No 1072 Investigation 

was determined that the record d

respondent participated in any a

in violation of sections 16 and 17 o

Docket No 1077 Inve8tigation 

Rico Trade Outward Freight T

The

increased

Commission

rates on

adopted

various

the

comm

init

Rico just and reasonable

Docket No 1090 General Inve

and Practices in the FloridaPu

tariffs and transportation practic

unlawful No finding made as 

and said respondent was ordere

periodic financial reports to the 

certain audits No Endings we

and Motorships of Puerto Rico

Docket No 1091 Orleans Mat

gation Company The Commissi

dismissing the complaint on the g

complainant were applicable and 

Docket No 1095 Agreanent N

Japan and Agreement No 31051

It was determined that section 1

a provision in the basic agreem

ening the selfpolicing system of 

vote of the parties to such agreem

the subject of this proceeding wer

Docket No 1097nthe Matte

Steamship Co It was determine

subject to the act with respect to 

to the filing and approval require

rary and interim agreements be

tially all the provisions of Agreem

tion 15 and were effectuated by r

ment 8905 not having been show

Docket No 1100 Sub No 1I

the Member Lines of the North A

Continental North Atlantic Wes

that Agreement 9218 be approved

Docket No 1102Pacifio Coas

It was determined that an evide

issue is involved that Rule 29 

sanction in respondent sconfer

absent provision therefor in the 

thorized to institute a plan of 

ventional or routine ratemaking 

28
control of competition and thus mus

and that the provisions of section 15 

ate without prior Commission appro

fications rules and regulations exp

to the exercise of the ratemaking 

ment and prohibits them from effe

approved port equalization plan

Docket No 1105 Agreement 7700

ence The Commission adopted the 

Modification 6 to Agreement 7700

Docket No 1115 Application fo

irarding Co Inc Docket No 1116 

Mr L H Craves dba Patrick d G

tions of respondents for licenses a

denied because of operations in vio

to the Commission of false financia

in order to collect brokerage unlaw

sideration it was determined that 

that applicants submit independen

every 6 months for 2 years

Docket No 1123 Matson Navigati

CoastIlawaii Trade The Commiss

iner finding respondent srates for tr

Pacific Coast ports to Hawaii just and 

Docket No 1130 Martin Birnbach 

Commission adopted the initial decis

on ground that respondent had not v

Docket No 1144 Sea Lurid Ser

Puerto Rico Service It was deter

of respondent sSea Land sservice 

lawful since no emergency exists just

Docket No 1165Application fo

Cabeas The Commission adopted 

the application of respondent for a 

warder on grounds that applicant la

duties and responsibilities of a freig

to the requirements rules and regula

Rules

The Commission

of Practice and

granted

Procedure

applicatio

a

or waiver of collection of undercha

Docket Nos 266 267 282 Order of R

The Commission denied applicatio

eeedings Special Docket Nos 268 2

Decisions of Hearing Exa

In proceedings not yet decided by 

Docket No 732HIiempner v Ly

No 733II Ttcmpncr v Lykes Bros 

Galveston Cotton Company v Lykes 

735Texas Cotton Industries v Lyke

termined in these proceedings which 

ration that the complaints again

prejudice as a result of settlement o

from US Gulf ports to Ports in the M

Docket No 872Agreement No 8

Lines of the Far East Conference 

bound Conference It was determin
conferences concerning the trad

the Far East was not detrimenta

wise in contravention of section 

initiative overland rates and 

approved joint agreement and t

Act 1916 that the agreement 

voted on while sanctioned by t

of Public Law 87346 that the 

commodities are placed on the r

the Shipping Act 1916 that th

to incorporate the complete agr

as amended Agreement No 820

Docket No 890 Inthe Matte

ishPortuguese Trade Docket 

Practices of Carriers Engaged i

Portugal It was determined 

15 10 and 17 of the act durin

respondents were found not to ha

Docket No 904Puget Sound 

al Docket No 914Puget Sou

pany et al It was determhux

titled to reparation because of a

common carriers while latter w

approved agreement in violatio

complaints were dismissed

Docket No 960Ilawaiian R

determined that the rates and c

portation of property between 

unreasonable to the extent they 

Docket No 1066Alcoa Ste

in the Atlantic Gulf Puerto Ric

general increase in rates of resp

hico trade was just and reason

of return and the proceeding wa

Docket No 107 JapaAtlant

Patronage Dual Rate Contra

ference of Japan Exclusive Pa

mined that the use of dual rate 

to the commerce of the United 

unjustly discriminatory or unfa

ports or between exporters fr

petitors If modified in accorda

the proposed dual rate contract

of the Shipping Act 1916 as ame

Docket No 1079The Persia

Patronage Dual Rate Contra

posed exclusive patronage dua

accordance with the recommenda

Docket No 1084 Investigatio

Coast Ports It was determine

grain moving through marine te

the Department of Agriculture s

stitute an unjust or unreasonab

1916 and the proceeding was dis

Docket No 1088 Jordan Int

lovabiana et al It was determ

obtained from Grancolombiana 

Orleans by means of an unjust 

charges which would otherwise 

1961 in violation of section 16 o

colo nbiana allowed complainan

30
to New Orleans in violation of sectio

rates on logs from Colombia to Ne

prejudicial unjustly discriminatory 

United States that the complaint b

the weighing and shipping practices 

Docket No 1089Polkswagenwer

Corporation et al It was determin

ment of respondents who are commo

act and also members of the Pacific 

established a method of assessing an

bers obligation under an agreemen

the International Longshoremen sa

the purview of section 15 of the Sh

Docket No 1096The Northern Pan 

McCormack Lines Inc at al It w

9040 establishing money pools in the 

be in violation of the Shipping Act 1

commerce of the United States nor 

that the complaint should be dismisse

Docket No 1100In the Matter of 

Lines of the North Atlantic Continen

82102 Between the Member Lines of 

Freight Conference It was determ

would be in violation of section 15 of 

discontinued before the Commission d

Docket No 1101 Pacific Seafare

Berth Operators at al Complaina

wholly foreign interport trade in ce

Development was not entitled to rep

of the Shipping Act 1916 where dam

in rates by competitive bidding fo

unified rate agreement among resp

other matters described in section 15 

the jurisdiction of the Commission w

trade in goods of foreign origin and 

national Development financed the p

only American flag carriers were in

between foreign ports are not requi

Shipping Act unfiled agreements ou

Shipping Act 1916 are not brought 

nizations set up to administer other 

Commission where the approved agr

and were not modified by the unfiled a

Docket No 1105 Sub No 1ag

StateslPersian Gulf Trade Agreem

section 15 of the act

Docket No 1134 Investigation of P

foao Ifaiun aisha Ltd and Mitsu

that respondents as Parties to FDIC 

serve Duluth on inbound traffic delive

even though the same vessels called 

did not violate sections 15 or 16 F

found to be the complete agreement b

proceeding was discontinued

Docket No 1145 Reduction in Fre

Coast Ports to Puerto Rico It was 

spondents on automobiles were unjus

and 5 of the Intercoastal Shipping A

rate was nrescribed and the effectiv

those in a companion proceeding
Docket No 1150 Hasman 

classification and Misdescriptio

United StatesPuerto Rico T

had misclassified cargo and vi

Hasman Baxt and Valencia 

and violated section 16 of the 

to certain shipments of synth

respondent had violated section 

Docket No 1155 Imposition 

the Philippines It was determ

cargo from the United States 

15 16 17 or 18b5 of the 

Docket No 1166 In the Mat

USAtlantic GulfAustralia

outbound conference agreemen

River ports to trade from Atlan

with separate section to fix rate

ordinary conference action fro

for rate agreements as to rate

and use of conference rates by 

of any such rate agreement i

approved pursuant to section 

ment between conference and 

establishment of agreed rates 

and application of conference 

approved pursuant to section 

permission was granted to exte

to entire trade covered by confe

ment pursuant to section 14b 

Docket No 1168Applicatio

baum 810 Bridge St NYY 

denied because applicant as a p

of selling and shipping goods 

pendent ocean freight forward

Special Docket No 365Uni

Austrian Trade Delegate It w

authority to accept 3000 as fu

the amount of807 13be gran

Special Docket No 368Lyke

fund in Part Charges Collecte

Orleans Louisiana to Liverpo

the application of Lykes Bros 

freight charges collected on sh

England be denied

Special Docket No 370 Lyke

fund in Part Freight Charges 

from San Juan Puerto Rico W

hama Japan It was determin

Co Inc to refund in part freig

Lykes from San Juan Puerto R

Special Docket No 373 Ba

Lines Inc It was determined 

refund a portion of freight mon

Examiners also issued decisi

1005 1006 1006 j1007 1

1017 1018 1018 1018 2

1028 1029 1030 1031 1033 

1014 1045 1046 1017 1048 

1057 1058 1059 1061 1072 

32
1105 1106 1109 1110 1111 1115 

SD 282 SD 290 SD 312 SD 313 

371 SD 372 SD 374 described above u

Pending Proceedings

At the close of the fiscal year th

which 31 were initiated on the C

mainder were instituted by form

by conferences trade associat

operators and others

Rulemakin

At the end of the fiscal year t

were in process

Docket No 875 Filing of Tariffs b

been heard on revised proposed rules

Docket No 934Predated Bills of 

Docket No 964 Filing of Tariffs 

eign Commerce of the United States 

ther revised proposed roles incorpor

tariff filing were published April 24 19

Docket No 965 Inve8tigation of a

Pacific Coast Terminal in Granting F

and Service Charges

Docket No 983Rule8 Governing C

merce of the United States

Docket No 1148Publication Pos

rules were published in the Federal Re

Docket No 1147Cancel7ation of In

of Ports to Which Service Has Been 

lished in the Federal Register Octobe

Docket No 1148 Publication Pos

Dom estic Offshore Trade Proposed 

October 9 1063

Docket No 1149 Protest8 to Tarif

fication to State Commonwealth or T

or Tariff Amendments Proposed rul

ber 9 1963q

Docket No 1156 Shippers Reque

lished in the Federal Register Novem

Docket No 1183Practice8 of Li

Freight Brokers and Oceangoing Co

mon Carriers by Water Proposed ru

16 1963

Docket No 1184 Practices of Inde

Freight Brokers and Oceangoing Co

Records Proposed rules published 

Docket No 1186Licensing of Inde

of Application Fee Proposed rules 

1964

There were published in the fisca

ment 5Reports by Common Carri
General Order No 6Rules Go

ments General Order No 7S

I II III Republishing of R

General Order No 9 and Ame

Expulsion Provisions of Steam

10Green Aide Weighing Prac

Base and Income Account by Ve

Offshore Trades

Actio

During the fiscal year 10

crease in the volume of litig

of the General Counsel clu

21 orders There were 42 

and orders of the Commiss

cases were pending at the en

Several of the more impo

The Government of Craam v 

of America 329 P 2d 251 DC 

affirmed in part an order of the 

trade between the United State

mission for further findings an

and working capital

Pacific Westbound Conferenc

States of America 332 F 2d 49 

dismissed as insubstantial and 

Commission issued pursuant to 

the conference to submit to the 

The petitioner had appealed on 

pose for which it was issued wa

able and oppressive The court 

appeal

Dixie Forwarding Company 

trict Court Southern Dist of 

a complaint which sought a wri

to section 10 of the Administra

issue plaintiff a license to eng

stated that the Courts of Appe

suspend or determine the valid

mission The court further sta

Court to compel official action b

of a ministerial nature and co

to entertain the suit

American Export and Iabrand

and United States of America 

affirmed an order of the Comm

adopted by the Pacific Coast E

before the practices therein se

unable to agree with petitione

proved Conference Agreement

The Commission also referred 

67 cases involving violations o

Shipping Act 1933 and rende

connection therewith

34
Legislative 

The Commission was conce

during the fiscal year The fir

cluded lumber from the tariff 

of the Shipping Act 1916 The 

exempted certain terminal lease

Shipping Act The latter was 

terminal leases which had not b

proval due to a general unaware

tion of the Shipping Act 191

within the terms of section 15 

affirmed by the US Court of Ap

The Commission made no oth

the fiscal year

Adm

Commissioners

John IIarllee hear Admiral 

Columbia was designated by th

the Chairman Federal Maritime 

Ashton C Barrett of Missis

ment as Commissioner expired 

President and confirmed by the 

term expiring June 30 1967

Other members of the Commi

E Stakem of Virginia John S 

V Day of Maine

The Commission on January 

Vice Chairman succeeding As

of appointment as Commission

Staff Organization

Timothy J May was appoin

24 1963 succeeding Elmer E 

the Managing Director were b

administration of the organizat

national Affairs also manage

Office of the Secretary and the 

Personnel

There were 231 employees on 

20 employees from employment 
Management Improvem

A vigorous management 

Commission in fiscal year 

agement supervisors and em

ness and reducing costs Iv

agency program of prioriti

management information a

uled work is accomplished o

month concentrated search 

brought forth 209 employee 

percent of which were adop

officials of the agency to stud

agement problems which cut 

Notable achievements inc

processing of carrier tariff c

forwarder licenses 2 inc

level thereby expediting a

employee utilization 3 st

agers 4 conversion of th

matic data processing throug

General Services Administ

ports and paperwork process

36
A

Statement of Appropriation 

Ended 

APPROPRIATION

Public Law 88245 88th Congre

For necessary expenses of th

including services as authoriz

August 2 1946 5 USC55

exceed 75 per diem hire of p

forms or allowances therefo

September 1 1954 as amended 

OBLIGATIONS AND UNODLIOATED BALA

Net

Ju

obligations for salaries and 

Unobligated balance withdrawn 

STATEMENT OF RECEIPTS DEPOSITED W

TREASURY FOR THE FISCAL YEAR 

Duplication of records and oth

Freight forwarder license fees 

Fines and penalties 

Bonus for reporting service 

Total general fund receipts