Fiscal Year Ended

June 30

1925

WASHINGTON

GOVERNMENT PRINTING OFFICE

1925
TAE UNITED STATES SHIPPING BOARD

T V OCoN o Chairman

EDWARD C PL E Vin Chairman

WDA W S BENSON Commieaim

BEET E HANEY Commiuio r

wvL m S HEL Commieeioan

MEYER LWNEE Commiuia

rMDERim T TEOEPEON Commiamiaaer

ROY H MoE ILJ SwdlarV
dustaeatos dso8

Piers and wharves division 54

Investigations division 56

Port facilities division 57

Bureau of Construction 60

Bureau of Law 82

Bureau of Finance 96

Bureau of Research 97

Legal department 138

Litigation division 98

Contracts opinions recoveries and special assignments division 103

Secretary

Admiralty division 104

106

II UNITED STATES SHIPPING BOARD EMERGENCY FLEET

CORPORATION

Page

Officers of the corporation 115

General manager 116

Department of investigation 116

Statistical department 116

Secretary 117

Operations 118

Radio section 119

Disability and vessel personnel section 120

Revenue and expense section 121

Contract division 121

Stevedoring and terminals division 122

Purchase and supply division 123

Maintenance and repair division 129

Traffic 136

Traffic department 136

European and Mediterranean trades division 137

South American and Nest Indies trades division 138

Far East and longvoyage trades division 140

Passenger and mails division 142

Claims division 143

III
TAm EI Vessel property controlled by the United States Shipping Board

Emergency Fleet Corporation as of June 30 1925 182

II Status of vessels controlled by United States Shipping Board

Emergency Fleet Corporation as of June 30 195183

III Recapitulation of vessels owned or controlled by the United

States Shipping Board segregated according to type fuel

used and dead weight tonnage as of June 30 192 i184

IV Managing operators managers and operators and charterers

of Shipping Board vessels as of June 30 1925 186

V Statement of vessels assigned to passenger and cargo service

maintained by the United States Shipping Board as of

June 30 1925 1S7

VI An analysis of the total vessel property acquired by the United

States Shipping Board showing disposition of same as of

June 30 1925 190

VII Accomplishments and disposition of billed accounts receivable

fiscal year ended June 30 1925 197

VIII Summarized consolidated cash statement by appropriation for

the fiscal year ended June 30 1925 198

IX Balance sheet as of June 30 1925 203

X Gross appropriations and allotments from inception to July

1 1925 206

XI Statement of profit and loss excluding liquidation fiscal year

1925 208

XII Report of litigation for period June 28 1924June 27 1925 209

XIII a Employees of the United States Shipping Board who were

separated during the fiscal year ended June 30 1925 211

b Compensation of employees of United States Shipping

Board in service on June 301925 211
LETTER OF TRANSMITTAL

UNITED STATES SIIIPPIND BO

Washington D C Decembe

To the Congress

In compliance with section 12 of the shipping act 191

the honor to transmit herewith the ninth annual rep

United States Shipping Board and the United States 

Board Emergency Fleet Corporation covering the fiscal y

June 30 1925

T VOCoNNOn Chairman

EDWARD C PLUMMER Vice C

W S BENSON Commissioner

BERT E IIANET Commissioner

WILLIAM S HILL Commissione

DIExEn LIss Commissioner

JDIIN H WALSH Commissione
PART I

UNITED STATES SHIPPING BOARD
UNITED STATES SHIPPING BOARD

ORGANIZATION

On July 1 1924 the Shipping Board consisted of the 

members T V OConnor chairman Great Lakes ap

member June 9 1921 term five years qualified June 

Edward C Plummer vice chairman Atlantic coast 

June 14 1921 term three years reappointed May 23 192

expire June 8 1930 qualified June 3 1924 Frederick I T

Gulf coast served under recess appointment from De

1920 to March 4 1921 qualified June 13 1921 term two 

appointed June 9 1923 and served under recess appointm

January 28 1924 when he was appointed for a term of 

Meyer Lissner Pacific coast term one year qualified 

1921 reappointed June 13 1922 term six year W S Be

lantic coast served under recess appointment from De

1920 to March 4 1921 term one year qualified June 13 

appointed June 13 1922 term six years Bert E Hane

coast appointed July 1 1923 qualified July 2 1923 serv

recess appointment until January 28 1924 when he was re

for the unexpired term of four years from June 9 192

appointed for a term of six years from June 9 1925 W

Hill from the Interior appointed to serve unexpired te

D Lasker resigned qualified February 1 1924 term to ex

8 1927

During the year the board held 116 meetings in addition 

special hearings conducted either by the board or by c

thereof

Carl P Iiremer secretary of the Shipping Board res

fective March 15 1925 and was succeeded by Roy H M

pointed efrective April 1 1925

GENERAL

The scheme of organization and functions of the Unit

Shipping Board have remained practically unchanged sinc

annual report Its work under the shipping act of 1916 

merchant marine act of 1920 is clearly defined and divid

into three distinct headings 1 Regulatory and promot

M 72 
4 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

maintenance and operation of the Government merchant 

liquidation

The board has kept constantly in mind the mandate of 

expressed in the merchant marine act 1920 as defining 

toward which we are to aim and expressed in the preambl

as follows

That it is necessary for the national defense and for the proper 

its foreign and domestic commerce that the United States shall ha

chant marine of the best equipped and most suitable types of vessels 

to carry the greater portion of its commerce and serve as a naval o

auxiliary in time of war or national emergency ultimately to be o

operated privately by citizens of the United States and it is hereb

to be the policy of the United States to do whatever may be ne

develop and encourage the maintenance of such a merchant marin

so far as may not be inconsistent with the express provisions of th

United States Shipping Board shall in the disposition of vessels and 

Property as hereinafter provided in the making of rules and re

and in the administration of the shipping laws keep always in 

pnrpose and object as the primary end to be obtained

Regulatory and Promotional

The board s organization is divided into seven bureaus 

Bureau of Traffic Bureau of Operations Bureau of Cons

Bureau of Law Bureau of Research Bureau of Regulat

Bureau of Finance the details of which are submitted h

besides committees of the board dealing with such ma

dieselization of ships ship sales codification of navigatio

registration and transfer of ships construction loan fund 

etc Some of the functions consist of dealing with the 

of United States ships to aliens rules for registry recor

titles rules and regulations affecting shipping rules for 

tax deductions investigative functions cost of building h

abroad advantages and disadvantages of operating vessel

American and foreign registry rules for construction and c

tion here and abroad marine insurance navigation laws an

thereunder status of mortgage loans discriminatory practi

penalties provided discrimination by foreign governments 

United States vessels study of ship routes necessary for A

commerce mail payments on essential routes advise Intersta

merce Commission as to railroad rates or practices inimica

flow of American commerce administration of constructio

fund and the general promotional work of the board in the u

ing of an American merchant marine The board is procee

the full development of these functions

Each bureau is under the supervision of a commissioner 

the preliminary and advisory work on any subject has be
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

pleted by a bureau the recommendations thereon may be r

to the entire board for action

The broad regulatory and quasi judicial powers of the 

extend to the American merchant marine as a whole wheth

vately or publicly owned Among the functions in this grou

be mentioned

a Prevention of all unfair practices including paym

deferred rebates use of fighting ships or resort to discrim

methods or contracts

b Requiring the filing of copies of agreements fixing r

any memoranda of facts

c Altering rates or fares to correct discriminations

d To report to the President cases of discriminations by 

governments against the American merchant marine

e To determine whether a United States vessel may be 

ferred to foreign registry and to approve or withhold appr

charter to an alien

f To approve all Government rules and regulations a

shipping in the foreign trade

p To cooperate with the Post OIlice Department in fixin

of compensation for ocean mail contracts

Some of the duties in connection with the promotional wo

a To study the main routes desirable for American com

in general and to determine what lines should be established

b To make loans from the construction loan fund to aid 

citizens in the building of ships

c To promote encourage and develop ports and water 

portation facilities in cooperation with the Secretary of War

d To investigate the comparative American and foreign 

of building operation and marine insurance the advantage

disadvantages of operating vessels under American and f

registry the methods of classification the navigation laws a

status of mortgage loans

e To adjust downward the income taxes of shipping com

under certain conditions to encourage new construction

f To advise the Interstate Commerce Commission as to 

a

road

port

rates or practices which hamper the flow of commerce th

The separate reports covering the individual bureaus will be 

beginning on page 17 of this report

Operation of GovernmentOwned Fleet

As permitted by law the Shipping Board following its poli

tablished by resolution passed September 30 1921 operate

Government fleet through a subsidiary organization known a
NINTH ANNUAL REPORT UNITED STATES SHIPPING 

Emergency Fleet Corporation the president of which 

reports to the Shipping Board as to a board of director

fixing the broad general policies and holding the Fleet C

officials responsible to it for results in the carrying out of 

fixed by the board Accordingly in line with established 

practices the board has adhered closely to the principle 

ample authority in a single executive for the administra

operation In fixing the policies for the operation of 

primary purpose of the board has been to maintain be

sufficient to insure to the commerce of the United Sta

frequent certain and permanent transportation to th

trade regions of the world

About 80 per cent of American tonnage in operation 

trade routes is Government owned Half of the remain

cent is owned by industrial carriers not employed to an

able degree in the competitive field Conditions have 

that practically all American flag services other than tho

as industrial carriers would have to be abandoned to fo

if they were not maintained by the Government

Therefore the problem of the Shipping Board in t

resolved itself to one of efficiency in ship operation i

maintain the greatest possible number of vessels within 

priations granted by Congress Accordingly the Shipp

on November 30 1023 passed a resolution outlining a 

operation policy designed to increase efficiency and redu

of operation which resolution in more detail provided fo

1 Consolidation of ship routes to avoid overlapping a

tion

2 Elimination and consolidation of managing operator

their number

3 Revision of the then existing operating agreement so 

vide for

a An adequate fixed fee which should be the sole co

of the operator dependent upon the volume of gross re

establishing an incentive for obtaining full cargoes

b Elimination of duplicate organizations in the han

vessels while retaining supervision necessary to protect t

ment sinterest

c Establishment of closer supervision by the owner to 

insurance fuel repair bills etc

d Elimination of fixed allowances

e Prohibiting subsidiary corporations except where 

authorized

f Protection against foreign affiliations

and the resulting reduction in personnel and administrati
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOARD

Since the adoption of this new procedure as outlined above 

voyage losses have shown a material reduction The board has 

been steadily reducing its administrative costs and it migh

stated by way of comparison that it has reduced the number of 

ployees of the Fleet Corporation from in excess of 5000 July 1 

to 245 on June 30 1925

During the fiscal year ending June 30 1921 the expenditures 

salaries were approximately 15500 0 and for traveling expe

office supplies advertising communication service and other ge

expenses approximatelyS275 000 or a total of23775 000

On June 30 1923 the number of employees had been reduce

372 and for the year ending June 30 1923 expenditures for 

aries and wages were 9049 6 Traveling expenses office sup

advertising communication service and other general expe

amounted to 4372 91 making a total of 13422 60 or a re

tion of 1923 under 1921 of10375 000 approximately

On June 30 1925 the number of employees was 245 and 

salaries paid during that year amounted to 5247 193 For tra

ing expenses office supplies advertising communication service 

other

7

general expenses there was expended 20772 a tota

6

45465 and a reduction over the fiscal year 1923 figures of al

000 The number of managing operators have been red

from 36 on June 30 1924 to 25 on June 30 1925 which has 

mitted supervision of the activities of managing operators 

greatly reduced personnel

There is a minimum beyond which reduction in expenses can 

go and still give efficient service except by taking off of additi

ships A considerable part of the 14000 reduction in ap

priations and in operating expenses during the fiscal year 1925 u

those of 1924 was brought about by the reduction of ships 

operation

The Shipping Board feels its responsibility imposed by Cong

to maintain adequate trade routes to carry the larger part of Am

can exports and imports as an aid to American commerce 

national defense

Whether the board will go forward with the establishment 

merchant marine sufficient to carry the larger portion of our for

commerce in accordance with the merchant marine act or whe

the lines already established at great cost are to be gradually a

doned must be determined by Congress either by specific leg

tion or in the granting of appropriations sufficient or insufficien

carry on the work

American flag vessels are now far from carrying a major por

of the American imports and exports Our cargo vessels in 

foreign trade have been steadily decreased in number
NINTH ANNUAL REPORT UNITED STATES SHIPPIN

Figures compiled recently by our Bureau of Resear

seas cargo carried in American flag vessels as follows

Imports

en

Calendar Yearl92

Per cent 

37 

Calendar year1 28 

Calendar year1923 28 

Calendar year1929 31 

Calendar year 1925 first ha

These figures do not take into consideration bulk oil 

and grain lumber and ore from Canada on the Great L

to present a true picture of the import situation the Me

the Great Lakes imports should not be considered in th

the American merchant marine

Even including tanker cargoes near by foreign an

Lakes trades we find

Calendar year

Calendar year

Calendar year

Calendar year

Calendar year

Imports 

Per gent 

71 

533 

54 

98 

During the fiscal year 192324 we had an average 

vessels in operation during 192425 an average of 299 

the ensuing fiscal year for 192526 an effort will be mad

279 freight vessels as a maximum within appropriati

the board feels the necessity of placing back into serv

tional number of vessels rather than having to take 

service

The board is directed to determine what steamship 

be established and are necessary for the promotion d

expansion and maintenance of the foreign and coastw

the United States with a view to furnishing adequate 

tain and permanent services With respect to routes C

also provided in the merchant marine act that wher

lines and regular services have been established and m

the Shipping Board such lines shall be maintained b

until in the opinion of the board the maintenance there

nesslike and against the public interest The board f

sacrifice any of the present routes would be injurious t

interest to further lessen the number of ships or reduce 

of sailings would not permit of adequate service but w

remove the present minimum protection of American 
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOARD 

consumers and exporters and would be an expenditure of m

for a purpose which could not be accomplished because of it

adequacy resulting not only in gross waste of such funds b

waste of moneys appropriated in the past to build these ess

ship routes Additional vessels must be put into operation in o

to provide an adequate number of vessels to maintain trade r

to meet competition of foreign lines Reliability and respons

have been built up by the foreign lines through giving reg

reliable and frequent sailings to their patrons Competition 

be met by competition not only in quality of service but in qua

and if the board does not add more ships to these particular r

where the foreign vessels predominate in such large numbers 

impossible to hope to comply with the merchant marine act in 

building of a merchant marine to carry the major portion o

commerce of this country

Liquidation

The board has maintained a vigorous sales program during 

past fiscal year

In the disposition of the surplus ships there have been 63 

of a total deadweight tonnage of 339 567 for nearly 900

This included 48 steel ships of various types and 10 wooden 

concrete vessels together with some oceangoing tugs barges 

other craft Five of the President type passenger boats 

sold for operation in designated trade routes with guaran

service 4 steel tankers and 1 steel cargo vessel were sold for ch

of motive power and 13 cargo and 1 passenger vessel sold 

obligation to perform specific alterations and betterments

Of the dry docks which came into the board s possession 

result of the war three now remain These have been lease

private enterprise and are in general use

Sales of surplus operating supplies and materials approxim

900 0 have been made and in addition approximately 400

worth of material has been transferred to other Government de

ments Some small lots of surplus material still remain to be 

posed of but their values are nonconsequential

The Federal Marine Railway Co property on Hutchinson Is

near Savannah and a few houses in Camden N J and Philade

Pa and two lots in Brooklawn N J are the only properties 

transferred Some of these have been sold

Hog Island was extensively advertised for sale bids to be op

October 1 1925

From the special claims appropriation of 50000 there 

been disposed of claims aggregating 171 256 000 for settlemen
IO NINTK ANNUAL REPORT UNITED STATES SKIPPING 

21394 830 in cash and offsets and counterclaims of 240

a total value of43853 925

Considerable progress has been made in the liquida

accounts both payable and receivable Ilncollectabl

receivable have been thoroughly investigated and 

when found absolutely worthless old liabilities have b

or compromised so that a considerable amount of dea

have been eliminated from the balance sheet

A decision of the board to sell some of the vessels 

resulted in the sale of 200 for either scrap or conversio

propulsion

RECO3131ENDATIONS

In considering the merchant marine problem of the Un

the first question to be answered is this Is a merchant m

tial to the business prosperity and military security of 

States

This question has been repeatedly considered by Co

from the time the first Congress spoke up to the tim

expressed its views in the merchant marine act of 1920 

has been unqualifiedly in the affirmative So that ques

as Congress is concerned may be considered settled

Nest comes the question Is it possible for an America

marine to exist in the foreign trade of this country witho

ment aid

Passing over the emphatic declarations of earlier Co

may be said that from the close of the Civil War when 

pearance of American merchant ships from the foreig

this country became so marked as to compel congressiona

tion Congress has repeatedly considered this question an

day that the bipartisan committee of Congress in 1870 r

unanimous report up to and including the action of C

embodied in the merchant marine act of 1920 the answ

in the negative and in all these cases the kind of Gove

which should be given has been stated by the Congress 

mittees The recommendation of the Lynch Commission 

for direct subsidies for freight ships and mai

steamers

The act of 1920 provided for preferential duties on carg

in American ships for preferential rail rates on cargoes d

or brought in by American ships in foreign trade ma

and other special aids like loans to companies who wou

to build American ships etc were authorized Theref

be considered as settled by the deliberate and extended inv

of Congress that Government aid must be given in som
permitted those contemplated preferential tariff and tonnage duties

declared for in the NilsonGorman and Din ley tariff bills for the

benefit of American ships in our foreign trade The provisions of

section 28 allowing rail preferentials have not been permitted to

go into effect As a necessary result private operators generally

have not been put in a position to take over and operate permanently

lines of merchant ships in our foreign trade To secure the purchase

and operation by private owners of any of its freight ships in foreign

trade the Shipping Board has been compelled to resort to what in

effect is a system of subsidies made possible by the broad provisions

of the act under which it operates namely authority to maintain

services and dispose of ships in such ways as its good business judg

ment may dictate

This system inaugurated by the board in effect results in utilizing

freight ships of which we have a very large surplus as pay to

operators for operating losses instead of taking money from the

National Treasury It is permissible because otherwise these surplus

ships must remain in idleness and ultimately reach the scrap heap

To an operator who according to the character of the service in

which he is engaged will guarantee to operate at his own expense

ships in the foreign trade of this country for a period of from

three to five years ships are sold at a very low price the price being

fixed at such a sum as so nearly as can be calculated will make these

vessels when the probable losses which must be paid by the pur

chaser himself during the guaranteed period of from three to five

years are added to the purchase price stand him at the end of that

guaranteed period about 20 a ton Of course each operator is con

fident that he can reduce the amount of losses which his service now

is sustaining as soon as he is left free to exercise his own judgment

in the handling of his ships If his confidence proves to be well
Of course this is but a temporary expedient an attempt to utilize

surplus vessels of which we have an abundance in the payment

of operating losses and thus to reduce the amounts which Congress

must appropriate for the Shipping Board But it is only temporary

It in no way solves the problem of a permanent merchant marine

But it does enable the operator to buy these ships at almost scrap

prices and thereby reduce his interest and depreciation account on

capital invested to an inconsiderable figure so as to enable him to

carry on for the limited period provided for in his guaranteed pur

chase contract But when these ships are worn out he can not

hope to replace them by other Americanbuilt craft It is question

able if in some cases he can continue to operate them beyond the

guaranteed period but this expedient provided by the Shipping

Board does serve to keep these services in operation for a period

which should be sufficient to enable Congress to provide permanent

effective aid for American ships in the foreign trade

The danger of course is that the consideration of minor pieces

of legislation may consume this period of temporary relief before

the general fundamental aid that Congress has so often declared

necessary is put into effect

For instance it is seriously contended by some that the repeal of

the socalled La Follette Act should be had Whatever the merits

or demerits of that act may be American ships had been driven out

of our country sforeign trade before this act ever came into exist

ence Its repeal therefore would simply leave American ships

where they were before it was enacted namely unable to compete

with foreign ships in the foreign trade of this countryand agita

tion for its repeal would simply raise unnecesary obstacles to legis

lation while distracting attention from the great issue which must

be met by Congress

The suggestion that Americans be allowed to purchase ships

abroad overlooks the fact that this permission was granted by the

canal act of 1912 and no ships came under the American flag by
NINTH ANNUAL REPORT UNITED STATES SIIIPPING BOA

reason of that privilege To argue then that this privile

restore American shipping is to argue against established fa

becloud the real issue

The suggestion that repairs to American vessels should be 

foreign ports overlooks the fact that that privilege was t

owner sfor more than half a century and during that whol

American ships in the foreign trade of the United States c

to disappear from the sea

High cost of American labor both on land and on sea i

the real causes of the inability of private enterprise to mai

American merchant marine in the general foreign commerce 

country Of course the fact that great financial powers 

Steel Corporation and the Standard Oil Corporation mainta

in their foreign trade has no bearing on this problem Th

merely serve to emphasize the fact that just as they leadi

ness men of the world realize that it is essential for the 

of their business that they have fleets of their own to insure 

of goods at such times and on such terms as they may deem 

so the United States should have available for all its less p

but very numerous commercial people American tonnage 

them in exactly the same way that these greatest corporat

served for the average producers of textile goods machin

other American products can not afford to own ships f

individual uses Any great concern like the Steel Corpora

can supply full cargoes for its ships can reduce the per 

of transportation to as low a figure as can any competitor u

flag who is not able to secure full cargoes

Since then American labor on land and on sea does c

than corresponding labor under other flags and since ha

tury s experience has proved conclusively that this handica

of the handicaps which the private individual or ordinary 

tion can not overcome and has resulted in those numerous an

ful shipping firms which this country once had being dr

of business the question reverts to that which Congress has 

faced namely the problem of providing some sufficient 

manent Government aid to equalize the higher costs of A

ship operation with the costs of their foreign competito

problem then should not be how the ship or how ship rep

be reduced in cost by patronizing foreign labor but how 

can be put on exactly the same plane as other great Ame

dustries and provision should be made for a permanent m

fleet to be built in American yards and maintained and 

by American labor the purpose which Congress had in m

which it supposed it had accomplished when it enacted th
14 NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

1920 and created the present Shipping Board When that 

there is no question but that the American flag will retu

former important position on the sea Devising new instru

ties or modifying existing ones for operating existing shi

way tends to solve the real question

If the law which already provides for one form of Gov

aid is not to be utilized then a substitute should be provi

whatever form of aid is given it should not be to special 

but should be general in its provisions so that any Americ

ping firm willing to undertake the building and operation o

ican ships will be entitled to the same aid and the same oppo

to secure that aid that any other concern may have Provi

that aid having been made American shipping men should 

to demonstrate their ability to succeed in our foreign trade 

fear or favor just as has been done in the coastwise service

United States services which have given the United St

most magnificient fleet of coastwise vessels in the world

Of course the difference between mail liners and freight sh

constantly be kept in mind but existing law makes poss

proper support of mail ships Freight ships the ships whic

the vast agricultural and manufactured products of this cou

transport necessary raw materials for our mills are the cr

particularly need assistance

Shipping Board commissioners as individuals are not a 

to what method of Government aid would be most effec

desirable There are those who feel that discriminating tari

would not be effective and would produce retaliation But 

their individual preferences they have joined their associates 

ting the Shipping Board as a board squarely behind the law 

Congress has enacted There are commissioners of the S

Board who individually and in accordance with economic p

which they have long approved are opposed to the theory of 

ment subsidies They question the efficacy of such aid as we

fundamental principle involved but they have submerged th

personal views and thus enabled the board as a board to sup

Harding subsidy bill which the committees of Congress ha

ulated and recommended

The board realizes that Government aid alone either 

preferential tariff duties preferential tonnage dues or s

more or less direct can secure the operation and continued e

of an adequate number of American merchant ships under 

ownership

Fast passenger ships which are the type commonly refe

when the expression mail liners is used necessarily sail fr

serve but a limited number of ports Therefore it is necess

they be selected after an examination of port requiremen
NLNTI3 ANNUAL REPORT UNITED STATES SHIPPING BOAR

practically all ships that are engaged in or will engage in c

foreign commerce of this country are steamers or other 

driven vessels They are available for the purpose of trans

mails a fact recognized by the merchant marine act of 1920

But all these mail contracts are based upon the premise th

gress makes appropriations sufficient to pay for such mai

portation In order to give permanency to this form of 

American ships especially when the building of new vessels 

establishment of new lines is proposed provision should be 

when the board and the Postmaster General have agreed up

compensation which should be paid which would enable th

master General to enter into such contracts for a stated term o

with the expectation that successive Congresses would recogn

obligations arising under such contracts This would secu

transportation for American ships and thus to some extent 

the amount of other aids which are necessary to overcome the 

cial handicaps which American ships are under when competi

foreign vessels

The naval subvention also is not only permissible but just

the practice of foreign nations The American Navy with

ample auxiliary of freight and passenger ships admittedly is 

capped for the performance of its general purposes The fa

when the Navy was sent on its tour around the world dur

administration of President Roosevelt it was compelled to 

upon foreign colliers which of course would be unavailable 

of war shows not only the need there is for a supply of s

serve the Navy in times of peace but their absolute nece

times of war

This Navy subvention also would be far from sufficient t

come the handicap of high cost under which American vesse

but as in the case of mail payments it would contribute so

toward a reduction of the total amount which must be prov

order for American merchant ships to be restored to and mai

in the position which they once occupied and which it is rec

is so essential for the commercial and military welfare 

country

In addition to sonic of the financial handicaps already me

under which American ships in foreign trade now operate 

must be recognized that our principal foreign competito

strongly entrenched in the ocean carrying business of the 

They have expert organizations which have been engaged 

ousiness for many years They have long established com

contacts They have the benefit of long continued train

shipping merchants officers and crews of their ships wh

created in these foreign countries a shipmindednessa p

interest in shipping as a great national industry which at 

does not sufficiently exist in the United States
16 NINTH ANNUAL REPORT UNITED STATES SIIIPPING B

A great aid in solving this merchant marine problem w

equal enthusiasm of Americans for American shipsa 

tion of American merchants to patronize American ships 

exports and for their imports When it is remembered t

cent of the contracts made with Americans by foreigners f

from this country provide that the cargoes contracted fo

transported in the ships of that country to which the 

belongsie foreign shipsit will be appreciated how g

handicap which American ships comparatively new to th

without the benefit of old established contacts suffer

It must be recognized that the foreign purchaser whe

goods in this country generally buys f o bthat is to b

him at an American port and carried on his own vesse

he sells he sells c i f which means he sells delivered at 

can port and again lie chooses his own vessels for that oc

portation American buyers and sellers pay notenough 

to the question of the ship nationality They allow the 

to select the ships and the foreigner of course selects hi

vessel American merchants should be awake to the fac

practice discriminates against American ships This is 

instances where they can learn with profit from their for

petitors

But one fact stands out clearly Unless and until the aids 

for in the merchant marine act 1920 are made effective o

substitutes in the way of more direct but equally com

assistances are provided Congress must continue to make a

tions sufficient to maintain an adequate merchant mari

foreign trade of the United States and what that mercha

should be Congress has stated as a fleet sufficient to handle 

portion of our foreign commerce

If the present method of maintaining our merchant 

the foreign trade of this country by means of annual appr

for operation expenses is to continue then Congress mus

problem of replacements Merchant ships will eventua

obsolete The development of internal combustion en

brought about a radical change which means that with

years the bulk of a great Governmentowned merchant fle

out of date

There is immediate need for at least two new passe

available as naval auxiliaries for our United States lines 

velopment of our South American trade already calls fo

tion to that fleet of combination passenger and freight 

No attempt to stand still will succeed Failure to progr

retreat and practical withdrawal of our flag from the se

as existing vessels are worn out or have become so out of 
NINTH ANNUAL REPORT UNITED STATES SKIPPING BOAR

be excessively expensive for operation It is a fundamental p

that must be solved and it can not be solved by mere va

in methods of mechanical handling

BUREAU OF TRAFFIC

In previous annual reports the Bureau of Traffic has re

on the activities of the board not only in respect to matte

within its jurisdiction as shown below but also as to matter

in the jurisdiction of the Division of Regulation in respect 

regulatory powers of the board arising under various sect

the shipping act 1910 as the joint jurisdiction over all thes

ters was exercised by the bureau under the supervision 

commissioners of the board but during the year the wo

divided leaving each in charge of a department one in cha

the Bureau of Traffic and one in charge of the Division of 

lation now organized as a separate bureau

As at present constituted the Bureau of Traffic has been 

in respect to the duties of the board arising under section

19 21 22 24 27 and 28 of the merchant marine act 1920 

ing the year the personnel of the bureau has been increas

cluding the appointment of a director

Under section 7 of the merchant marine act 1920 the bo

authorized and directed to investigate and determine what 

ship lines should be established and put in operation from 

of the United States to other world and domestic markets 

extent such services in its judgment seem desirable for the p

tion development expansion and maintenance of the foreig

coastwise trade of the United States and adequate postal s

It is also authorized to determine the type size speed and 

requirements of vessels best fitted for such services respe

together with the frequency and regularity of their sailings to 

the demand of commerce in which may be reasonably include

only the regularity and frequency required by existing com

but the establishment of schedules adequate for the proper de

ment of our commerce

The activities of the board tinder this provision of law h

twofold aspect One of these is the collection of informatio

the benefit of persons contemplating engaging in steamship o

tion wholly apart from and irrespective of the operation or s

the Government owned fleet The other is the conduct of in

gations of the kind mentioned incidental not only to the ope

of the foreign routes by the Government itself but with re

to their consolidation and to their sale to private parties 

details of such consolidations made during the last fiscal yea

as follows
18 NINTH ANNUAL REPORT UNITED STATES SHIPPING 

CONSOLIDATIONs DOPING FISCAL YEAR 19242

1 North Atlantic Ports to Mediterranean and Black Sea Ports

Services maintained by three operators were conso

placed in the hands of one managing operator authorize

resolutions of July 2 and August 27 1924 and consolid

ratified by agreement September 5 1924 By resolution 

ber 23 1924 board approved the trade name Americ

Line for use in the consolidated service

Old services

Mallory Transport Lines Azores a

Inc 8 steamers Islands 

Spanish A

ish Frenc

nean wes

Adriatic 

Export Steamship Car North Atlantic range Africa we

poration 7 steamers Norfolk to Portland Dlalta C

Greek L

Syria Pa

North Af

Bizerta

A H Bull Co 6 Constantinop

steamers ports

It was felt that consolidation of these services and cba

assignment of berths would result in improved service 

Export Steamship Corporation and A MI Bull Co w

both having authority to operate from North Atlantic 

port of Constantinople Consolidation of the three Me

operators into one company to which could be allocated t

ranean services could not be efrected and the entire Me

services were allocated to the Export Steamship Corpo

contemplated reduction in number of steamers from 21 to 

Consolidated service

Greece C

Black Sea 

Malts Alexa

American Export Linesl

coast and 

Export Steamship North Atlantic range Rest coast 

Corporation J Norfolk to Portland French Me

North Afric

Mediterran

riatic po

offers

2 South Atlantic Ports to the United Kingdom and Continenta

Services maintained by three operators were conso

placed in the hands of one managing operator under the 

American Palmetto Line authorized by board resoluti

1 1924 and September 4 1924 and ratified by agreem

14 1924
NINTII ANNUAL REPORT UNITED STATES SHIPPING B

Old services

Carolina Co South Atlantic ports to Breme

burg

Tampa Interocean Steamship Co South Atlantic ports to Lond

dam and Antwerp

Trosdal Plant Lafonta South Atlantic ports to Liv

Blanchester

The nature and volume of cargo moving on these routes 

it highly desirable to have this trade in the hands of one 

who would be able to take advantage of cargo offerings 

South Atlantic ports and furnish satisfactory service with 

in number of steamers from nine to seven when possible

Consolidated service

Jacksonville Charleston Liverpool Man

Palmetto Line Carolina Savannah lBremen Romb

Co Tampa Jacksonville London Rotte

Charleston Savannah werp

3 Texas Ports and New Orleans to United Kingdom Ports

Services maintained by two operators were consolidated a

in the hands of one managing operator under the tra

American Dixie Line authorized by board resolution of 

1924 and ratified by agreement of August 4 1924 tra

approved by board resolution of August 13 1924

Old services

Trosdal Plant LaFonta New Orleans to Liverpool and M

New Orleans to Glasgow Belfa

and Avonmouth

S Sgitcovich Co Texas to Liverpool and Manch

The companies operating these services were combined a

company organized known as the United Gulf Steamship 

to which latter company the consolidated service was alloc

Consolidated service

New Orleans Galveston London

American Dixie Line Galveston Houston Liverpool Manc

United Gulf Steam Liverpool Manc

ship Co Inc New Orleans Belfa

mouth

4 New Orleans and Texas Ports to Germany and Holland and T

to France and Belgium

Services maintained by two managing operators were 

and placed in the hands of one managing operator under 

names Southern States Line and Texas Star Line a

by board resolution of December 30 1924 and ratified by a

of January 20 1925 semitrade names authorized by reso

July 31 1924
20 NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

By board resolution of June 19 1924 ratified by agreem

July 25 1924 and July 26 1924 respectively the above s

which had each theretofore been maintained by two ma

operators were combined and placed in the hands of one 

in operator for each service under the trade names 

mentioned Subsequent to this consolidation the two op

Lykes Bros Co and Daniel Ripley Co were consolidat

one company under the name of Lykes Ripley Steamship 

ration approved by board resolution of December 30 1

above noted

Services previous to board resolution of June 19 1921

Lykes Bros hew Orleans to Rotterdam

New Orleans to Hamburg and 

Daniel to Hamburg Bremen 

Ripley Co

dam

Lykes Bros Galveston to Bremen Hambu

terdam

24 steamers operated in above services

Daniel Ripley Co Houston to France and Belgiu

S Sgitcovich CpGalveston to France and Belgi

11 steamers operated in above services

Consolidated services authorized by board resolution of June 19 

New Orleans to Rotterdam

Southern States Line Lykes Bros New Orleans to Bremen and H

Steamship Co Galveston and Houston to 

Hamburg and Rotterdam

Number of steamers reduced to 19

Texas Star Line Daniel Ripley

Co

Number of steamers reduced to 7

Houston and Galveston to Fr

Belgium

Consolidated service authorized by board resolution of December 9

Southern States Line I

LykesRipley Steamship

Corporation

Texas Star Line

New Orleans to 

dam

New Orleans to 

and Hamburg

Galveston and H

Bremen Ham

Rotterdam

IIouston and Ga

France and Be

The services previously handled by Lykes Bros and Danie

Co while not directly competing with each other were 

related in that they served the same general range and the c

tion into one company was voluntarily proposed by both comp

in line with the announced policy of the Shipping Board to 

age consolidation of trade routes along practical lines
NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

5 North Atlantic Ports to Antwerp and Rotterdam and from Ne

Rotterdam

Services maintained by two managing operators were 

and placed in the hands of one managing operator under 

name American Diamond Lines authorized by Shippi

resolution of September 16 1924 and ratified by agreeme

tember 27 1924 trade name American Diamond Line a

by Shipping Board resolution of November 26 1924 ch

American Diamond Lines by board of trustees resolutio

uary 26 1925

Old services

Black Diamond Steam North AtlanticRotterdamAnt 12 ste

ship Corporation werp

Cosmopolitan Shipping Co New YorkRotterdam 3 st

North AtlanticFrench ports 11 ste

The first recommendation approved by the Shipping Bo

lution of July 2 1924 was for the consolidation of these se

der the management of the Cosmopolitan Shipping Co 

steamers to Antwerp and Rotterdam and 10 steamers t

ports This action was rescinded by Shipping Board res

September IG 1924 and the Black Diamond Steamship Co

was given the exclusive service from North Atlantic ports t

dam and Antwerp and the Cosmopolitan Shipping Co t

sive service from North Atlantic ports to French Atlantic 

latter under the trade name America France Line

The consolidation while malting it possible to reduce the 

of steamers by eliminating duplications did not contempla

number of sailings it also resulted in the most practical com

of ports coupled with greater flexibility of operation

Consolidated service

Philadelphia New York

Black

ship Co

Diamond Steam

Philadelphia

New York JJ

New York Antwerp

Boston Baltimore Nor Antwerp Rotte

folk

Cosmopolitan Shipping Baltimore Philadelphia Havre Dunkirk

Co

New York

Philadelphia New York Bordeaux St N

6 Gulf Ports to the Orient New York to the Orient and New Yo

Dutch East Indies

Services maintained by three managing operators were 

dated and placed in the hands of one managing operator u

trade name American Pioneer Line authorized by Shippin

resolution of July 1 1924 and ratified by agreements of A

1924 and September 8 1924 semitrade name authorized b

ping Board resolution of August 13 1924
22 NINTH ANNUAL REPORT UNITED STATES SHIPPLNG BOA

Old services

Barber Steamship Lines

Kerr Steamship Co

North Atlantic ports calling at

South Atlantic when cargo in

ducements offerOrient via the

Panama Canal returning one

steamer a month via Europe and

the other steamers direct to the

North Atlantic

North Atlantic portsDutch East

Indies

Tampa Interocean Steam Gulf portsOrient

ship Co

Total

Of the abov

and of greater

the operators

the Gulf to th

the operation

the Tampa In

Lines resulted

service

11 ste

6 ste

11 ste

23 ste

e services those to the Far East were more e

importance than the Dutch East Indies ser

from the North Atlantic to the Far East a

Ring to effect a combina

steamers This combin

Co and the Barber S

four ships in the con

Consolidated service

China and Japa

American Pioneer Linel North Atlantic ports S Philippines an

Atlantic Gulf Orii

1 East Indies

ental Steamship Co fGulf Far East Chin

and Philippin

7 North Atlantic and Gulf Ports to West African and South Afric

Services maintained by two managing operators were 

dated and placed in the hands of one managing operator u

trade names American Vest African Line and America

African Line authorized by Shipping Board resolution of 

27 1924 and ratified by agreement of October 22 1924 se

names authorized by Shipping Board resolution of October 

Old services

Mallory Transport Lines

Inc

A H Bull Co

Port Arthur and New

York

New York Gulf via New

York when induce

ments offer

South and Eas

ports

Azores Canary 

Madeira and 

rica

These services were consolidated and allocated to A H Bu

Consolidated service

American South African

Line A H Bull Co

American west African

Line A H Bull Co

Port Arthur and New

York

New York Gulf via New

York when induce

ments offer

South and Eas

ports

Azores Canary 

Madeira a

Africa

e Far East were wfi

of Shipping Board

terocean Steamship

in a reduction of
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

ADEQUACY OF ExISTING SERVICES

The staff of the Fleet Corporation having also been eng

the study of existing trade routes during the fiscal year with 

reference to the consolidation of lines operated by the Gov

the work has not been duplicated by the staff of the Bureau o

The report of the Fleet Corporation on this subject howeve

ited chiefly to existing trade routes covered by Shipping Bo

sels The larger task contemplated by section 7 of the m

marine act namely the study of world routes whether at 

covered by American vessels or not is distinctly a task of th

ping Board in its relations to the American merchant mar

whole including the privately owned and privately operated 

Not only has the study of the problems arising under s

to do with the maintenance of service itself but also with 

quacy of existing service having in view the increase of 

especially when such increase is dependent upon Shipping 

operation to meet the reasonable requirements of the trade 

seasonal or otherwise An interesting illustration of this 

is presented in an occurrence at the port of Galveston Te

insufficient American tonnage was in service to meet the dem

the grain movement during the season 1924 with the result 

farmers were not only subjected to inconvenience in the m

of their crops but were exposed to serious loss both in the p

of possible higher freight rates and in the proceeds of sale 

commodities resulting from delayed transportation Th

studied the situation and promptly supplied the additional 

required

Another illustration relates to the transportation of pin

from the Hawaiian Islands to United States ports Transsh

are usually made of this commodity in cases It was reporte

board that the movement from Pacific ports around to the G

Atlantic ports was inequitable and unfair to the Mississip

area of the United States in that intercoastal steamship co

engaged in such transportation quoted a higher rate of fre

delivery of the commodity at New Orleans than was qu

north Atlantic ports notwithstanding the mileage to New 

is much less of course than the mileage to Atlantic por

board investigated the situation and succeeded in having eq

rates established thus making possible the maintaining of s

New Orleans for distribution of the commodity through

Mississippi Valley instead of having cargoes unloaded a

Atlantic ports to be transported westward by rail to midwe

nation
24 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

It is also provided by section 7 that the Postmaster Gen

contract for the carrying of mails over such lines as may be 

by the Shipping Board at such price as may be agreed upo

board and the Postmaster General This poker to the boar

Postmaster General is supplemented by the provisions of s

of the merchant marine act 1920 where it is emphasized 

mails of the United States shipped on vessels shall when pr

be carried on Americanbuilt vessels documented under the 

the United States and that the Shipping Board and the P

General in aid of the development of the merchant marine 

to provide for the maintenance and expansion of the foreign 

wise trade of the United States and of the satisfactory post

in connection therewith may determine the just and re

rate of compensation to be paid for such services and the Po

General is thereby authorized to enter into contracts for s

ice The section expressly provides however that such 

must be for payments within limits of appropriations ma

for by Congress to it for the carrying of such mails in suc

at such rate

The value of this power in the board is illustrated in the 

rendered by it in procuring the continuance of the service 

San Francisco and Australia by the Oceanic Steamship 

maintenance of which was impracticable without adequate 

sation for mail transportation and apart from the powers 

sections 7 and 2t of the merchant marine act no previous law 

under which such compensation could be assured as the oc

act of March 3 1891 under which the company had been p

functioning had become wholly inadequate because of the 

crease in the cost of operations since its enactment Under 

visions of the merchant marine act however the reasonable 

sation needed was arranged by the board with the Post Office 

ment and has since been maintained

The value of this power in the development of the merc

rine is further illustrated in the active negotiations which h

conducted by the Bureau of Traffic during the fiscal year w

pective purchasers of existing lines of the board the success 

operation after having passed into private hands will s

depend upon adequate postal contracts By way of illustrat

developed by this bureau during the fiscal year in negotiation

prospective purchaser of the Pan American Line on whic

operated some of the finest of the Shipping Board vessels 

New York Rio de Janeiro Buenos Aires and other eastcoa

American ports showed that a postal contract of about0

per annum under the provisions of sections 7 and 24 wou

one hand assure success of the operation of the line com
NINTII ANNUAL REPORT UNITED STATES SIIIPPING BOAR

and on the other hand would relieve the Government of the 

annually made in maintaining its operation which deficits hav

tofore exceeded 1000 per annum

The bureau has on hand at the present time three separate 

in respect to which it is proposed to secure contracts if po

under these sections of the law The great difficulty however 

the law as it at present stands is not only are any and a

contracts agreed upon by the board and the Postmaster G

futile unless and until Congress has made suitable appropri

but even though an appropriation exists for the current yea

not practicable to secure private capital in such operations so l

so important a part of the income is dependent upon annual 

priations by Congress for which reason the law should be am

by authorizing contracts for a stated term of years and com

Congress to appropriations to meet the obligations of the con

In respect to that part of section 24 which declares as a polic

all mails of the United States carried on vessels shall if prac

be carried on American vessels this bureau has actively inves

during the fiscal year the extent to which this requirement 

In general it finds the Post Office Department sympathetic w

policy outlined Whether in given instances the use of Am

vessels may be further developed is now the subject of defin

vestigation by the bureau

Interest in Lines Sold

In its obligations to the privately owned merchant marin

duties of the board under section 7 and under the merchant m

act generally remain in full force to the lines heretofore op

by the Government and since sold to private companies and th

reau of Traffic of the board will continue to consider problem

dent to such lines notwithstanding liability for their operati

entirely passed from the Government to private owners I

continue to interest the bureau to investigate and study con

arising from any attempt on the part of foreign steamship lin

rate wars or otherwise to impair or destroy the services guara

to be maintained by the purchasers and should occasion aris

board may invoke action under the provisions of section 19 

merchant marine act 1920 in determining what if any rule

regulations affecting shipping in the foreign trade can be deve

to meet such conditions and to protect the American merchan

rine against unjust discriminations or unfair rate wars Amo

other provisions section 19 authorizes and directs the boa

proper cases to male necessary rules and regulations to carry o

provisions of the merchant marine act 1920 and to make rule

regulations affecting shipping in the foreign trade in aid of t

complishment of the purposes of that act in order to adjust o

general or special conditions unfavorable to American sh
26 NINTII ANNUAL REPORT UNITED STATES SHIPPING 

engaged in foreign trade whether the route on which the 

be operated is a particular trade route or not and mo

when such conditions arise out of or result from foreign 

or regulations or from competitive methods or practice

by owners operators agents or masters of vessels of a fo

try Any service however in such matters will be as p

work of the board based upon its interest in the growth a

ment of the American merchant marine and in no sense a

to any contractual obligation whatever in respect to the 

line involved

Work Under Section 8 Merchant Marine Act 1920

The work of the board tinder section 8 of the merch

act 1920 has in some of its aspects been done through 

of Traffic Section 8 directs the board in cooperatio

Secretary of War to investigate territorial regions and z

tary to ports taking into consideration the economies of 

tion by rail etc and the natural direction of the flow of 

with the view of promoting encouraging and developing 

transportation facilities in connection with water romm

United States to the end that ports normally entitled to 

tions of such commerce for ocean transportation should 

barred of proper participation therein because of artifi

tions which might he corrected such as for instance 

regulations by railroads prejudicial to particular ports 

as these conditions are due to railroads the functions of 

are limited to investigation of facts and making recom

thereon to the Interstate Commerce Commission which 

course has mandatory power over railroads

The annual report for 1921 refers to an instance of t

activity in this field in connection with which it is men

a motion had been made before the Interstate Commerc

sion for the enforcement of the principle that when railro

tain water terminals at ocean ports they shall not be pe

absorb in their linehaul rate the cost for services at s

terminals but shall set forth as a separate factor in qu

the part thereof to cover such terminal services During t

fiscal year the Interstate Commerce Commission rendered 

in the matter and granted the motion of the board with 

that the proceedings in which the motion was made I C 

No 12681 were reopened and investigations extended 

graphically and as to subject matter

The position of the board was presented to the Inters

merce Commission in 10 points or propositions as follows

I Railroad control of portsRailroads should not be permitted 

lize railwater terminal facilities at ports because a Other rai

ing an outlet at such ports might thereby be excluded from tide
NINTH ANNUAL REPORT UNITED STATRS SHIPPING BOA

preferential treatment could be given steamship lines in which the 

owning the terminal is interested to the prejudice of competing 

lines c persons owning the railroad may be more interested d

indirectly in the development of genie port other than the port invo

it should not be within the power of a railroad either because of 

Interests or because of indifference inefficiency or financial inca

make or mar a port Purthermore though the railroad may act in 

and have ample capital other persons may have greater faith in 

bilities of the port than the railroad has

II Absorption of terminal chargesTo the end that independent 

may be encouraged railowned terminals should be operated on a 

petitive basis and the owning railroad should be compelled to ch

arately the reasonable cost of such service thus enabling shipper

pare the cost as well as the efficiency of the service at the railroad 

with the cost of similar service at independent terminals in oth

railroads should lie compelled to stop absorbing terminal charges in 

haul rate

III Separate cost accountswhen a railroad operates a railw

minal cost accounts of operation and maintenance should be kep

from the linehaul service so that the terminal service may be elim

the returns do not compensate the railroad for its cost and also 

may be a proper basis for computing the reasonable charge to be mad

using the terminal If the cost of such service is not earned the 

met by the general treasury of the road and instead of collecting 

those to whom the service is rendered the cost is distributed th

higher level of linehaul rates among all persons using the railr

result Is that many shippers who neither seek nor receive the u

railwater terminal are compelled to contribute to the cost of such 

through the higher cost of their linehaul rates

IV Service costs what it costs It is neither an injustice nor a 

to require the railroad to separate the terminal charges from the 

rates for the terminal service costs what it costs and no illusion 

that fact If a railroad received 100 as a joint rate on a rai

shipment and that amount is a reasonable rate for the rail haul alon

being added for the fla service that service nevertheless cost

road what in fact it cysts it if therefore in the hypothetical case 

railroad in fact contributes terminal service which costs it 20 per c

total rate then it is obvious the railroad is receiving SO cents on

linehaul service no agreement custom or competitive pressure c

the substantive fact

P Quotation of single rate rrohibiting the absorption of termin

in the linehaul rate will not affect the convenience of shippers in 

one total rate The division of the total rate into line haul and 

units will not require the shipper to pay the itenhs separately The 

is that in quoting a total rate the railroad will show in the quota

request how the total is divided as between the linehaul and 

charges With the quotation in this form the shipper can elect 

railroad for the line haul only Lind he should be able to eoquire th

to deliver the shipment at a terminal other than the railroad term

advantage to the shipper In this independence of choice is obvious 

dependent terminal may have facilities for haralling the particular 

greatly superior to the facilities offered by the railroad or the sh

prefer to use vessels which have access to the independent ter

may not have equally favorable access to the railroad ternhival

670i725R
2 NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

VI Effect on parity of ratesIt is claimed that if railroads are 

to separate their terminal charges from their linehaul rate this w

In breaking down the rate structure which has been developed 

years involving parity of rates between interior points and compet

This contention is not sound The interests of competing ports inv

an equality in the total traffic charge between a point in the interior 

or more ports competing for the traffic A railroad having its term

at Mobile may quote 1 on a rail and water shipment and another 

having its terminal say at Savannah may quote the same rate 

same shipment The cost of the terminal service at Mobile may in fac

20 per cent of the total rate while the cost of the terminal service at 

may be say 15 per cent of the total rate this does not affect the 

rates between such ports for the total rate quoted is the same in b

and the shipper Is interested only in his total cost hence neither the 

of the ports nor the rights of the railroad would be affected by requ

quotation to show what the terminal charges are apart from the lineh

VII Charges need not be uniformThe separation of terminal cha

linehaul rates does not require in order to maintain parity of rates a

competing ports that the terminal charges at the several ports should 

uniform The cost of the service is not at present uniform yet parity 

is maintained We have shown above that varying costs need not pr

separation suggested it follows therefore the terminal rates need not 

uniform

VIII Transit over terminalsIt is claimed that a railwater sh

substantially one movement from the point of origin to the point of 

tion including its transit over the rall water terminal While this ma

in particular cases in the sense that the movement is on a single thro

and on one bill of lading it is not true in a physical sense The mov

freight across the railwater terminal is an articulate step In its tra

should be so treated Freight deposited on a wharf whether from 

for delivery to a railroad or by a railroad for delivery to a vessel 

have its movement continued for some time hence the policy of fre

permitted commodities while nt such terminals its next step may not 

even been decided Freight is often delivered at the terminal by a 

before the vessel is at dock It is frequently collected together at the 

from various points of origin on railroads so that it may be consolid

shipment by vessel

IX Competition by public terminalsIt is claimed that publicly ow

minals may not be operated on a fair competitive basis in their re

railowned terminals because the interest of the community own

terminals would have in view the development of the port without r

the success of the terminal as a separate business venture We t

practice In such cases does not justify this fear Laws authorizing th

ment of public funds in terminal properties usually provide that the 

shall be operated on a self supporting basis

M Charging vessels dockageIt has been suggested that the cost 

water terminal should be met in part by a charge against the vessels 

at that terminal The suggestion has great merit and such a charge 

made at various ports The vessel enjoys the privileges of the term

without such privileges it would of course not be able to ship its car

thermore vessels sometimes physically Injure the terminals thereby in

the cost of their maintenance
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

In the light of the board sparticipation in the matter co

have been held from time to time with the Interstate Comme

mission srepresentatives developing the plan and scope 

further hearings the tentative suggestions of the board in r

which are as follows

I C C DOCKET NO 12681

TENTATIVE SUGGESTIONS OF UNITED STATES SHIPPING BOARD FOR INFORMA

WILL BE DESIRED OF RAILROADS

The words terminal charges as here used refer to charges fo

commodities from the time they or the car containing them l

linehaul to the time they are discharged on dock at ship side o

cent sheds under circumstances that the railroad has no further 

bility for their physical movement The term includes wharfage 

also storage incident to the movement in regular course of trans

it does not include warehousing for general storage purposes n

include elevator service Information concerning such elevato

and also warehousing of a general warehousing kind is also desire

same periods

The term rail water terminal as herein used means a term

port on the Great Lakes or at a port of continental United states 

oceangoing vessels operating in coastwise or foreign waterborne 

The traffic involved in this inquiry Is especially traffic moving 

railwater terminals between linehaul rail transportation and su

going or Great Lakes vessels bath in coastwise and foreign trade

These preliminary statements are not to be construed too literally 

mentioned Only to indicate the plan and scope of the information d

Subjects to be covered

1 At what ports in continental United States has the road 

terminal facilities and if at more than one port which of these is 

as its principal railwater terminal His the road the customary 

facilities exclusively rail either for freight or passengers or bo

same port separate and apart from its railwater terminals

2 Describe such railwater facilities at each such port includin

of the entire harbor and also plans and photos of the terminal

3 If the road has warehouses apart from the warehouses in

transportation uses and elevators at suet port describe these with 

minal if adjacent thereto otherwise give separate description

4 Describe the equipment at the railwater terminals for the ha

commodities

5 Give history of such railwater terminals in a physical sens

ing full statements of expansions and substantial replacements from 

time

6 Give a financial statement showing the total capital invested in 

terminals in each port separately whether direct or through subsid

porations setting forth outstanding bond issues and stock investme

show what stock if any is owned by railroad in other railwater term

also in steamship lines

7 What stock if any is owned by the road in other rail lines wh

lines have railwater terminals at the same or other ports
30 NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

S what zones in the United States are chiefly served by these 

terminals both as to outgoing and Incoming freights and what are the 

ities chiefly handled over such terminals either as shipments from 

ments into such zones of course limiting the statement to shipme

have been transported by oceangoing vessels to or from such termin

9 with what other terminals at Inch ports has the road a 

facilities physically and b switching traffic arrangements

10 Give statement showing the extent the road srailwater ter

been usedsay for last three years if practicableincluding in such 

following items a Dumber and total tonnage dead weight ton

vessels loading and unloading freight at such terminals and whic

was transferred to or from linehaul transportation b destinatio

vessels or port from which commodity has been brought respect

what proportion of such freight consisted of bulk freight and what p

of the total was packet freight what was the nature of chief commod

ing in bulk

11 what volume of freight was switched from main line of ro

last fiscal year to water terminals at some port other than its o

terminal

12 Give comparative statement for say last five years if p

showing a total tonnage handled by road srailwater terminal in 

and b total tonnage similarly handled at all terminals at each port 

road has such railwater terminals

The freight movements herein in mind are only those over the 

terminals between ocean and linehaul transportation

13 what other ports in respect to the chief commodities trans

the road reporting can be fairly regarded as competitive ports of th

the reporting road has its chief railwater terminal

14 At what ports where the road has railwater terminals are 

force uniform regulations and rates affecting all terminals at such p

whether by agreement local law or Interstate Commerce Commissio

State generally what these rates rulings and regulations are and 

of all such items

15 If the port at which such railwater terminals are located is 

group of ports in respect to which uniform tariffs are maintained on 

either for through movement or otherwise state what other ports are 

of this group and file copies of all tariffs regulations and rulings 

such parity is based

10 Give full statement covering last five years if practicable 

what commodities have passed between linehpul transportation a

portation by oceangoing vessels over such railwater terminals and 

to which the linehaul rate has absorbed the whole or any pa

terminal charges and if any though not all state what part of suc

were thus absorbed

17 If at any one time such charges have been absorbed on a 

commodity when shipped from a particular point in file interior b

sorbed when shipped from other points to the same railwater term

full statement of all such cases as they have occurred during the 

years if practicable also give reasons on which such variations of 

were based

1S Give full statement showing in what instances storage in 

is permitted and in what cases it has been permitted during the 

years if practicable including a statement of the concessions w

been made either in respect to terminal charges or payments by th
NINTH ANNUAL REPORT UNITED STATES SIIIPPING BO

warehouses for such storage or handling charges in or out of s

otherwise Also stating by sway of comparison the treatment the 

would have received if the movement had been an initial shipment f

house where storedintransit

10 Of the movement over the railwater terminal during the 

year state what part thereof respectively was a on through bill 

b though not on through bill of lading yet had a definite rooting 

by the shipper c what part of it was undefined so far as the rout

movement was involved

20 Put in evidence all tariffs which have been in force at any ti

the last five years relating to or affecting terminal charges or other 

or concessions in transit

21 Give statement showing regulations and allowances regard

time both as to freight consigned locally and as to freight in trans

linehaul and oceangoing vessels Show variations existing as to fr

allowances as between various commodities and as between points 

of shipment also as between export movements and coastwise m

If practicable set forth the average free time consumed in all s

ments including separate statement of the amount of free time us

on account of the commodities awaiting the arrival of the vessel

22 Give statement showing total receipts for terminal services 

at the railwater terminal in connection with the transit of commo

tween linehaul and ocean transport When such receipts are several

on different items of terminal services set forth the total receipts 

such item

23 Give description of any system of separate cost accounting m

by the road in respect to its railwater terminals

24 Give statement showing the net result of the operation of 

water terminal treated as a separate entity and based upon the a

system at present used by the railroad Furnish a similar statem

any rate an estimate based upon the items set forth in Exhibit 

annexed being a memorandum by Capt F T Chambers of the a

elements to be included in such computation of costs

25 To what extent have vessels mooring at the road srailwater 

been made a dockage charge Submit any schedule of such 

charges which may be in force or which may at any time during th

years have been in force

Another instance of the board s participation in procee

the Interstate Commerce Commission affecting ports in their 

to the oceanborne commerce of the United States was the 

Jones v The Atlantic Coast Line Railroad I C C Do

16955 This case is an apt illustration of the function of t

in such matters Several Sears ago large quantities of 

moved through the port of Norfolk Va and this movem

lost to Norfolk in favor of Newport Sews Va under circum

alleged to be inequitable to the port of Norfolk in that th

peake R Ohio Railroad introduced the practice in respect 

ments of tobacco from the interior to Newport News unde

it not only permitted storageintransit facilities but absorbe

of the costs incident to such storage or at least of the h

charges out of such storage whereas movements from the 
32 NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

to Norfolk were not given similar treatment As a result 

preferential treatment on movements to Newport News t

absorbed a very large part of the entire movement to the H

Roads region to the prejudice of the port of Norfolk The 

of the board in the matter as presented to the Interstate C

Commission is as follows

When two ports are in competition and one of them proceeds t

itself with modern terminals equipped for the most expeditious and 

ical transfer or interchange of passengers or property between ca

water and carriers by rail as section S of the merchant marine ac

ports should do in proper cases and as that section suggests that the 

Board should encourage them to do in proper cases may a railroad 

the terminal advantages accruing to the port thus securing such 

terminals be free to make in favor of the other port concessions 

to the linehaul or terminal services rendered in connection with co

transported to such port which are not made in connection with co

transported to the port building such new modern terminals and t

such concessions or special re7ilations justified on the ground that 

necessary in order to assure to the other port some of the traffic wh

otherwise go to the port securing such new modern terminals

As applied to the present case for instance Should new modern w

terminals at Norfolk be prejudiced by special service or treatment 

special charges made by railroads in connection with shipments to 

News and then on complaint have this difference in the treatmen

ments to the two ports respectively justified by the fact that at 

News adequate waterfront terminals have not been built and spec

sions must be made because interior warehousing facilities must be u

shipments to Newport News

The bureau has continued its interest and work in the pro

pending before the Interstate Commerce Commission unde

4 of the interstate commerce act having in view a gran

transcontinental railroads of the right to quote rail rates 

the Atlantic and Pacific coasts lower than between inter

points on the same route commonly known as fourth se

plications These applications have been prompted by t

petition created by intercoastal steamship service with th

continental rail routes The conditions which have result

this competition have affected not only the railroads invol

many cities of the Middle Vest complain that their comm

also been affected by the direct ocean haul between the two 

in that the earlier practice of bringing commodities from 

lantic seaboard to Middle West cities for distribution lat

time to tim6 to cities farther west has been impaired in 

commodities are now transported by water to Pacific coa

and from them are shipped to interior points A solution 

difficulty has not been presented by the commercial bodies 

Middle West Whether the new condition is the normal r

the canal route or results from railroad conditions whi
NINTII ANNUAL REPORT UNITED STATES SHIPPING BO

measure may be corrected remains to be determined by 

state Commerce Commission in the proceedings now pend

It is a fact that the Panama Canal act anticipated the 

of the benefits of waterborne commerce between the two 

ing neutralized by the intercoastal steamship companie

under the control of the transcontinental railroads and 

against such consequences section 5 of that act provides in 

that it shall be unlawful for a railroad to own lease op

trol or have any interest whatsoever in any common c

water operated through the Panama Canal or elsewhe

which said railroad or other carrier subject to the inters

merce act may compete for traffic or in any vessel carryin

or passengers upon said water route or elsewhere with w

railroad or other common carrier may compete for traffic

A recent development in the relations of transportation 

and the shipping public has been the creation of regiona

boards having in view representatives of these two larg

meeting from time to time and discussing their respectiv

ments and problems Believing that these regional 

boards are instruments of value not only for the imme

poses of their creation but also as instruments with which 

might cooperate in doing work imposed on the board by 

of the merchant marine act 1920 especially as these involve 

ing the natural flow of commerce through appropriate p

bureau has given its support and encouragement to these b

to that end has attended their conferences

The Bureau of Traffic has also interested itself in thdeve

of a cooperative group recently organized on the Atlantic c

the title of the Atlantic States Shippers Advisory Board 

dite traffic and to advance cooperation between steamship 

roads and shippers In a measure it is supplemental to th

advisory boards above referred to which however involve

the relations of shippers to railroads and the new organ

intended by introducing steamship executives into the circ

bine the efforts of all three interests involved and improv

and water transportation The Bureau of Traffic of the 

lending its support to these cooperative movements has es

mind those functions of the board under section 8 of the 

marine act 1920 by which it is the privilege of the board 

matters to the Interstate Commerce Commission if and wh

sary in securing in proper cases cooperation and readjust

railroads

Free Zones and Ports

Proposed legislation has appeared from time to time in 

having in view the creation of free ports or zones at 

the United States Because of the bearing the question of 
34 NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

has on the waterborne commerce of the United States this 

has made a careful investigation of the whole subject and is e

to present the matter to Congress should further legislation 

posed The principle involved in the creation of free zones 

is the elimination of customs handicaps on movements in 

of the country when the imported commodity or product 

enter into and become a part of the commercial life of the 

but is exported from the United States to other countries e

manufactured form or otherwise from the free zone in the 

States Some applications of the principle contemplate the 

isolation of an area by fences etc within which area com

or products may be stored pending export or may be abs

a manufactured product which in turn is exported and th

process of the import of such raw material thus used in 

factures is simplified by the elimination of customs duties in

the escape from the system of drawbacks which in some 

meets the same need The system would also make possib

tion within these areas of imports intended to be absorbed 

commercial life but in respect to which the importer saves 

upon the import duty until a time when the product or comm

needed in our commercial life and is then withdrawn fr

free zone

Coastwise Laws

While the enforcement of the coastwise laws of the Unite

comes within the jurisdiction of the Department of Comm

so far as the enforcement involves proceedings against person

ing those laws duties are imposed on the board by law pe

to the extension of the coastwise laws to our island possess

the development of the principles and policies of the coastw

in the protection and advancement of the merchant marine

In section 21 of the merchant marine act 1920 Congress 

vided that when adequate service exists with vessels un

American flag the coastwise laws of the United States 

extended to all of the island possessions of the United Sta

to that end an express direction is given the board to have a

steamship service established to accommodate the comme

passenger travel of all such islands respectively A distin

drawn as to time and method by which the extension 

laws shall be accomplished In respect to those islands to 

the laws do not apply other than the Philippine Islands it 

vided that the extension should automatically go into e

February 1 1922 with the proviso that if the board fails t

lish adequate shipping service with any one or more of such 

by the date named the President shall extend the period me

and under proper certifications from the board such extensio

been from time to time made in certain cases With refe
NINTH ANNUAL REPORT UNITED STATES SKIPPING BOA

the Philippine Islands however the proceeding is reve

that the coastwise laws do not then automatically go into e

are effective only when the President by proclamation dec

adequate shipping service has been established and fixes a 

them to go into effect Ilis proclamation is required to b

on a full investigation not only of the trans Pacific traffic 

adequacy of the ocean tonnage but also the adequacy of 

to meet local needs and conditions in the interisland traffi

furthermore expressly provided that until Congress shall h

thorized the registry as vessels of the United States of 

owned in the Philippine Islands the government of the 

pine Islands is authorized to enforce regulations govern

transportation of merchandise and passengers between p

places in the Philippine Archipelago

On January 30 1022 the board passed a resolution ce

to the President the adequacy of tonnage available for se

commerce between the United States and the Philippine 

having in view the issue of the proclamation by the Presid

templated by section 21 thus effectively extending the c

laws to those islands but the President has not thus far 

proclamation to that end The resolution reads as follows

Whereas in the opinion of the United States Shipping Board adequa

ship service at reasonable rates to accommodate the commerce and th

ger travel of the Philippine Islands has been established be it

Resolved That certification be made to the President of the Unit

that such adequate service as set forth above does exist and th

opinion of the United States Shipping Board the provisions of sect

the merchant marine act of IM extending the coastwise laws of th

States to the Philippine Islands should now be carried into effe

manner specified therein

On the other hand the board has from time to time ce

the President that the tonnage available for service betw

United States and the Virgin Islands is inadequate and 

time should be extended when the coastwise laws of the 

States shall be effective as to the Virgin Islands the last c

tion having been by resolution of the board dated April 1

requesting that the time be extended to December 31 192

sponso to which certification the President issued a procl

accordingly

Daring the year the bureau considered the merits of a c

Great Britain that the coastwise laws as extended to the is

American Samoa because of the provisions of article 3 of 

partite convention of 1SOD between Great Britain the united 

and Germany relating to the Samoan Islands did not apply 

ish vessels After careful examination of the question the 

3767 25 i
36 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

recommended to the board a resolution which was duly 

reading as follows

Whereas the Secretary of State by letter dated November 3 1924 

known to this board that the British Government contends that Brit

have a right to participate in trade between American Samoa and 

of the United States and which letter requests information involv

terpretation of article 3 of the tripartite convention of 1800 betw

Britain the United States and Germany relating to the Samoan Is

the effect of section 21 of the merchant marine act 1020 on any rig

of British vessels to participate in the coastwise trade mentioned

Resolved the attitude of the United States Shipping Board is that 

of the merchant marine act 1020 extends the coastwise laws of 

States to trade between American Samoa and other ports of the Un

and that the tripartite convention of IS99 does not give British 

right to operate in that trade and furthermore if that conventio

ferred that right section 21 of the merchant marine act 1020 bei

date extinguished the right and this board is opposed to legislatio

negotiation of treaties which have in view extending to British or ot

vessels the right to operate on any route covered by our coastwise la

Resolved further a copy of this resolution together with a copy of 

randum entitled Coastwise Laws and Samoa this day filed with 

by Commissioner Plummer setting forth the reasons on which it is b

be sent to the Secretary of State with a letter in reply to his letter 

ber 3 1924

The bureau has made special study of traffic condition

Great Lakes with special reference to the enforcement of 

wise laws on those Lakes and the relief as far as possible 

there operating under the American flag from the handic

ing from the requirements of the navigation laws of th

States whereas Canadian vessels in competition with them 

erated free from many of those requirements The Gre

area was visited and conditions in the field examined esp

to conditions resulting from the proviso of section 27 of the 

marine act 1920

Under the provisions of section 27 of the merchant m

1920 merchandise in transit from one point in the United 

another paint in the United States transported by wate

point in its transit must be transported by water by an 

vessel The section provides however that it shall not 

merchandise moving over through routes meaning rail 

cooperation with water transportation heretofore or 

recognized by the Interstate Commerce Commission for wh

rate tariffs have been or shall hereafter be filed with said 

sion when such routes are in part over Canadian rail lines 

own or other connecting water facilities As a result of the 

activities in this field it recommended to the board a 

reading as follows which was adopted by the board on 

30 1924
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOARD 

Whereas vessels of foreign registry especially those navigating the G

Lakes are operated in the domestic commerce of the United States in a

competition with American vessels under the exception set forth in sectio

of the merchant marine act 1020 and by evasions and violations of our 

eral coastwise laws and

Whereas substantial competition now exists between vessels of Ame

registry operating on the Great Lakes in through lake and rail traffic 

withstanding it did not exist when the Interstate Commerce Comm

entered an order in effect qualifying Canadian vessels to engage in thr

domestic commerce of the United States on the Great Lakes unde

exception contained in section 27 merchant marine act 1920 and

Whereas it is within the power of this board to assure competitive c

tions In the traffic mentioned by operating tonnage on the Great Lake

methods similar to those empIcyccl in the board s operation of tonnag

ocean routes or by charter or by other effective means including their o

tion by private capital made possible in proper cases by sales of vessels a

prices or by loans from the construction loan fund maintained under se

11 merchant marine act 1020 at low rates of interest and

Whereas the admission of foreign vessels in competition with Ame

vessels in our domestic commerce when vessels under American registry 

subjected to expenses under express provisions of law to which expenses 

foreign vessels are not subject presents an unfair competitive condition w

should not be permitted and as it is the intention of this board under p

circumstances and when necessary to maintain adequate tonnage in the t

mentioned as contemplated by section 7 of the merchant marine act 10

the end that shippers may be protected against monopoly or inadequa

service in through traffic on the Great Lahes even though Canadian Line

excluded from the traffic mentioned it is

hesotccd the bureau of traffic of this board is hereby authorized 

directed to take all necessary steps to procure if possible the revocatio

the Interstate Commerce Commission of any orders or regulations heret

promulgated by it relative or pursuant to section 27 merchant marine act 

in so far as these either by express provisions or in their general effect 

it lawful for vessels of foreign registry to participate in the exclu

domestic commerce of the United States and

Resolred further the committee on legislation is hereby authorized 

directed to have a bill prepared and introduced at the next session of Con

having in view the complete elimination of vessels of foreign registry in

ing Canadian vessels operating on the Great Lakes from participation i

exclusively domestic commerce of the United States by the repeal o

provisions of law which permit such participation when adequate tonna

American registry is available and by amendments which will effec

prevent the evasion and violation of the coastwise laws of the United Sta

Believing that conditions prejudicial to the American merc

marine on the Great Lakes can not be fully corrected without a

priate legislation to prevent erasion of the coastwise laws 

and elsewhere the Bureau of Traffic has hell conferences B

the year with shippin interests on the Great Lakes Lacin

view presentin to Congress a bill preventing such evasion 

as regards frei ht and passenecr service The unfair compe

relationship between American and foreifn vessels resulting 

such practices tinder the proviso of section 27 is OLvious 
38 NINTH ANNUAL REPORT UNITED STATES SHIPPIN

illustration is as follows A Canadian line advertise

transportation of passengers from Detroit to Duluth 

viously wholly domestic and coming clearly within 

and polices of the coastwise laws of the United Stat

standing this fact Canadian vessels are operated on t

do not have to meet the requirements of many provisio

ican law to which American vessels are subject An 

of the matter revealed that the evasion has in the p

cessful because the Canadian line in selling tickets i

reading from Sarnia a Canadian port on the Detro

Detroit to Duluth thus exploiting it as a transactio

commerce not domestic commerce The evasion lies 

that the vessel physically sails from Detroit though 

Sarnia en route and the passenger though holding a t

from Sarnia in fact boards the vessel at Detroit T

is wholly domestic in all respects save only that the re

printed on the ticket reads Sarnia to conform to 

facts of the case it should read Detroit

Another instance of attempted evasion of our coast

by the steamship Voltaire of the Lamport Holt 

Voltaire a foreign vessel carried a large number o

from Philadelphia to Boston the purpose of their t

attend a convention in the latter city Incidentally th

carried the passengers from Boston to Halifax and 

the entire movement did not come within the coastwise 

it was a trip from Philadelphia to Halifax there

commerce and that the stop at Boston was incidenta

Department of Commerce which department is charg

enforcement of these laws imposed on the operating 

fine of 25000 On protest the department submitted 

the Attorney General of the United States who s

action of the department the ruling being that the v

voyage from Philadelphia to Boston and would not hav

excepting for the purpose of visiting Boston and the res

purporting to make it a foreign trip was incidentia

As the result of conferences the bureau has held with 

terests on the Great Lakes it has recommended legislati

among other things that when a passenger is sold a ti

two international points as in the case of the Detroit 

sion if the place of embarkation is a foreign port lie 

permitted to board the vessel for the commencement o

in an American port and conversely if the place of em

an American port and the destination is a foreign po

course lie would he permitted to board the vessel in th
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

port he would not be permitted to disembark at an America

of destination

The effort to weaken legislation protecting our domest

coastwise traffic and to evade existing coastwise laws has been 

careful investigation during the past year as foreign intere

making definite efforts to that end at international conferenc

otherwise As the board had information that some action 

end might be taken at the conference of the International Ch

of Commerce planned to be held in the summer of 1925 at Br

Belgium for the discussion of international maritime affai

board in anticipation of this fact passed a resolution date

20 1925 reading as follows

Whereas the agenda for the meeting of the International Chamber 

merce to be held in Brussels Ielgium in June has on it the consider

two resolutions dealing with flag discrimination and as it has be

gested that the subject of flag discrimination should be extended to 

the consideration of the coastwise laws of nations

Resolred In the judgment of the United States Shipping lfoard t

tinnance and effective enforcement of the coastwise laws of the United 

is essential to the existence of all American Merchant Marine and 

national defense and the policy underlying such laws is a domestic q

the discussion of which is not within the purisdiction of the proposed B

conference and therefore

Ro7red fnrthrr This board respectfully requests delegates from the 

States to object to the discussion by the Lrussels conference of any q

having in view the relinquishment of the coastwise laws of the United 

whether by reciprocal arrangements or otherwise should any such dis

he proposed

Anion the facts justifying the above resolution are the follo

1 The agenda of the approaching conference of the Interna

Chamber of Commerce to lie held at Brussels Belgium in 

contained the following under the title 4 Marine Transport

The Congress will lie asked to vote on a series of resolutions which 

submitted by Sir Alan Anderson expresident of the Chamber of Ship

the United Kingdom deputy governor of the Dank of England and ch

of the sea transport committee of the International Chamber of Com

Two resolutions deal with flag discrimination indorsing the Rome res

and insisting on the harm done to the country practicing such discrim

2 That some foreign shipowners have as an ultimate purpos

breaking dotil n of the coastwise lairs of the United States when 

di scuss fla discrimination is reflected by the following occu

at a incotiug of the Liverpool Steamship Owners Association 

several months afro as recorded in the Liverpool Journal of 

merce

Mr R D Bolt presided at tle annual general meeting of the Liv

Stean ship Owners Association hcid yesterday In moving the adoption 

amnal report he aid he was ctraigly impressed with the work of an in

tional character with whieli the association had been engaged in recent 
40 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

Of particular importance had been their labors against the prac

countries making a discrimination between their own shipping 

other nations wing their ports

He had always wished that international bodies should declare 

riage by sea whether in the foreign or in the coastwise trade shou

open to all parties His own idea had always been that the Br

should agree to throw any form of carrying trade open to those wh

ing to do the same in return IIe believed Scandinavia Germa

Belgium and Japan would all come into such an agreement and 

then be in a position to compel every nation to throw open its tra

flag In this way they would very soon have an end of all the exclu

were so extremely bad for trade in every form

3 In the light of this attitude the following extract fro

lution passed by the Federation of British Industries is s

Discriminations which deny equality of treatment to vessels of a

stitute a serious menace to the maintenance of an open market 

tion therefore hopes that the Government will do their utmos

that provision is made in the proposed convention for true equal

ment for flags of all nations

Now the convention referred to in this extract wa

ment framed by the Organization of Communication and 

of the League of Nations an official unit of the league 

the attitude of that body to be that flag discrimination 

prohibited at all ports coming within the terms of the con

I At a meeting of the International Chamber of Comm

in 1923 a resolution passed by it though apparently lim

l

express terms to the foreign commerce of nations has in it 

anguage

The congress therefore recommends that any attempt to restr

riage of goods or passengers between different countries to vessels s

the national flag of any nation by discrimination In any form 

strongly opposed as being contrary to international comity and d

international commerce the congress being of opinion that the e

and maintenance of commerce between the various nations on a 

can only be secured by equal opportunity to all ships under all flags 

of the world

The International Chamber of Commerce passed anoth

tion at a later meeting containing the following

Cheap and efficient transport depends upon the vessels of all fla

being treated by every country in all that concerns the use of the p

country and in all respects on a footing of equality with vessels 

passengers of that country

5 The convention to which we have referred above n

findings of the Organization of Communication and Tra

tioning under the League of Nations in referring to vari

leges to be enjoyed by foreign vessels including the full 
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

of the benefits as regards navigation and commercial op

which itarords to vessels their cargo and passengers furth

The flag of the vessels must not be taken into account nor may an

tion be made to the detriment of the flag of any contracting state w

as between that flag and the flag of the states under whose sove

authority the port is situated or the flag of any other state whatsoev

G That the tendency and the intent of some foreign sh

may be to break clown restrictions at present imposed by o

wise laws if possible is further evidenced by the following 

from an article entitled flag discrimination by Charle

Tennyson Esq one time deputy director of the Federation 

ish Industries appearing in Brassey sNaval and Shipping 

for 1925 a prominent British publication under the capti

strictions on coasting trade

It must not however be assumed that this convention is the last 

the subject

The writer is here referring to the convention of the 

ization of Communication and Transit of the League of 

He continues

There is at least one omission of very great importance for the c

is expressly stated not in any way to apply to the maritime coast

The position in regard to this trade is that the British coastlag trad

to all flags and that of almost all other nations is reserved to the nat

The writer further says

There has been a regrettable tendency on the part of fo

tions to include within the scope of their coasting trade traffic be

mother countries and her overseas possessions Although 

vention above mentioned did not cover the coasting trade a resol

Included in the final act expressing the hope that all States whether 

the convention or not would support these principles and in particu

abstain from undue extension of the coasting trade

In noting these comments on the regrettable tendency on 

of foreign nations to include within the scope of their 

trade traffic between the mother countries and her overseas 

sions the provisions of section 21 of the merchant marine a

under which the coastwise laws have been extended to ou

possession and under which they may yet be extended to the 

pine Islands may have been in the mind of the writer

This extract especially when considered with the above q

from the Liverpool Journal of Commerce clearly reveals 

tude of some foreign shipping interests to the coastwise law

United States

7 At a meeting of the council of the International Cha

Commerce held in Paris in February 1925 the members 
42 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

council from a prominent martime nation proposed the f

resolution

In the light of the principle of freedom in transit and commun

stipulated in the covenant of the League of Nations the Congress 

fully invited to use its best endeavors to induce the Governments 

to remove all barriers on the coasting trade of their respective coun

S Although the council did not adopt the above quoted re

action was taken by it in the premises as evidenced by the f

statement in Fairplay a prominent British publication 

February 19 1925 under the title French shipping news

The sea transport committee of the International Chamber of Com

here on 5th February and adopted a series of resolutions which were 

by the council of the chamber on the following day and will be su

the nest congress to be held at Brussels with regard to flag discrimi

committee recalled the principles laid down by the Rome congress of 

ber and insisted on the fact that those States which resort to tlag d

tion damage their own trade even more than of their neighbor It 

be noted that the general secretary of the chamber has been asked 

evidence showing how the restrictions placed on the coasting trade fla

oly in various countries affect commercial exchanges especially a

exports

The board s action was brought to the attention of the 

from the United States attending the conference and a sim

tion was taken by important steamship associations and ot

mercial bodies with the result that when an effort was mad

sessions of the Brussels Conference to discuss the question 

wise laws the American delegates opposed such action and 

fully maintained the position as is also set forth in the r

of the board cited above that as the coastwise laws of a nati

exclusively to the domestic commerce of the nation they a

subject for discussion at an international conference

Work Under Section 28 Merchant Marine Act 1920

The status of section 28 of the merchant marine act 1920 

as formal action by the board is involved remains the same 

the resolution of the board dated February 27 1924 unde

resolution the board withdrew the certification previously g

Interstate Commerce Commission under which certification 

became effective the board saction having been taken for the 

set forth in the annual report p 16 for the fiscal year end

30 1924

During the present fiscal year in his annual message to Co

December 1924 the President referred to section 28 as foll

The procedure under section 28 of the merchant marine act has cre

difficulty and threatened friction during the past 12 months Its 

application developed not only great opposition from exporters parti

to burdens that may be imposed upon agricultural products but 

anxiety in the different seaports asto the effect upon their relative 
NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

tares This trouble will certainly recur if action is attempted under 

It is uncertain in some of its terms and of great difficulty in interpr

It is my belief that action under this section should be suspende

Congress can reconsider the entire question in the light of the 

that has been developed since its enactment

Although no formal action has been taken the bureau 

active in procuring further information which may be 

should any proposed legislation be presented for the consid

Congress and to that end has communicated extensively wit

interested to secure the latest information

Uniform Bills of Lading

Closely related to transportation matters is the moveme

cure a uniform bill of lading for use by maritime nations 

The board has passed a resolution approving the moveme

eral without final commitment however as to details 

international conferences have considered the subject of a 

bill of lading and uniform obligations for use by ocea

in connection with foreign commerce The first of thes

ences was at the Hague in August 1921 at which a code o

the subject was prepared these have since been common

as The Hague rules 1921 These basic rules have be

oped at various meetings and at the International Marit

ference held at Brussels in October 1922 a convention w

upon and was referred to a committee for further dev

In October 1923 that committee further revised the c

and it has been the basis of several bills in Congress havin

the enactment of a bill of lading conforming to its provisi

board tools an active interest in the matter and proposed c

deemed essential to the interests of the American mercha

and American commerce The last bill introduced was to 

of Representatives H R 12339 68th Congress and the C

on Merchant Marine and Fisheries of the House submitted 

on it No 1620 dated February 27 1925 This bill was 

form of H R 11437 Dluch weight was given to the 

Great Britain had enacted a new carriage of goods by 

based substantially on the convention mentioned in earli

sions of the matter before the committee of Congress it was 

that the British act was mandatory the pending bill 

mandatory provisions accordingly the board demonstrate

committee of Congress that the British act in all of its as

not mandatory and it might be a handicap if American 

was subjected to a mandatory form if competing British l

not subject to a similar mandatory form The bill above 

to H R 12339 was favorably reported by the House c

but omitting penal clauses contained in the earlier bill w

the changes which had been made by it the bill submitt

House by the committee proposed a uniform bill of ladin
44 NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

of which was optional with carriers and shippers Notwi

ing the use was made optional a substantial advantage w

crue from such a law as it would have the force of law in 

to all contracts for the carriage of goods by sea where the 

to the contract adopted the provisions of the act by referenc

act and they would thus become relieved of any and all pr

of law in conflict with the provisions of the bill of ladi

authorized If the use of such provisions was mandatory on 

ican carriers they might not if their competitors were not 

exclusively to similar provisions be in a position to offer 

terms as their competitors in the transportation of commerc

matter is emphasized as similar legislation will probably 

posed at the next session of Congress all shipping interests 

quested to read the report of the House Committee on M

Marine and Fisheries referred to above Report No 162

Congress and also the bill to which the report relates 

12339 68th Congress

YorkAntwerp Rules

A proposed revision of the York Antwerp rules has al

the subject of international consideration and has been re

the attention of this bureau because of the relation these rul

to ocean transportation involving as they do rights and lia

of vessels and cargo owners in cases of general average Th

tion taken by the board in common with other American in

has been that the proposed revision having been develope

conference at which shipping interests of the United States w

adequately represented could not be introduced and that the 

subject should be reconsidered by an international gathe

which all maritime nations should be given adequate represe

Special Cases

In addition to activities under express provisions of law 

of which have been set forth in this chapter the bureau of 

has taken action on cases brought to its attention by shippe

others where their interests have been involved and prejudi

deficiencies of service either in respect to trade routes or 

the route itself may be adequately covered for general purpo

respect to special movements on such routes These specific 

will not be referred to in detail but the fact is mentioned th

public may understand the Bureau of Traffic of the board is 

strument that may be invoked for the investigation and con

tion of all reasonable complaints affecting shipments in whole 

part transported by water During the fiscal year a num

these complaints have received the attention of the bureau

Consular Service

The Consular Service of the United States is a source from 

the bureau receives great assistance and this opportunity is ta
NINTH ANNUAL REPORT UNITED STATE SHIPPING B

acknowledge the obligation of the bureau to members of 

ice in communicating through the State Department def

service in various parts of the world

BUREAU OF REGULMON

The work of the Bureau of Regulation covering the 

tion of the regulatory provisions of the shipping act and 

marine act relating to rates fares charges and practices 

carriers by water in interstate and foreign service was e

certain of its phases to care for the increasing volume of 

matters coming before the board for attention To fac

afford a more stable basis for the conduct of the work of 

extensive inquiries were made during the last several mo

period of this report to determine the status of all comm

by water furnishing transportation service of any characte

or to the United States and of other persons whose 

one manner or another reflects a relation to the regula

sions of the shipping act as contemplated by section I th

a result of this effort and of a revision of the somew

data previously at hand there is now available and in 

prehensive record of the organization and activities of 151

by water Of this number 190 interstate and 2G3 foreig

are subject to the jurisdiction of the board In additio

warders and others furnishing wharfage dockage war

other terminal facilities in connection with common c

water are shown to be within the purview of the shippi

amenable to such of its regulatory provisions as have app

their respective activities

Formal Docket

Nine sworn complaints and six intervening petitions file

pers and port interests in pursuance of section 22 of th

act in connection with rates and practices of carriers 

sidered by the bureau during the year Six of these fo

plaints were terminated by the issuance of appropriate ord

board following submission by the bureau of recommend

proposed reports prepared from evidence presented und

hearings conducted in accordance with the board srules o

In one instance of violation established in regard to un

rates charged reparation in the sum of1902 was found 

and payment thereof effected Hearing on a second com

volving reparation approximating 553 000 for injury alleg

been incurred by reason of a carrier sunjust discriminatio

importers previously found by the board to have been 
46 NINTH ANNUAL REPORT UNITED STATES SHIPPING BOARD

was conducted by the bureau and is the subject of proposed 

now in preparation for submission to the board with recomm

tions for disposal Upon complaint of shippers the rates of 

carriers applicable to carload and lessthan carload consign

of peanuts were found to be unjust and unreasonable and reaso

maximum rates to be applied in the future were prescribed 

other complaints attacking rates of carriers as unreasonable an

duly prejudicial were dismissed for lack of proof of the viol

alleged

In addition to complaints handled on the formal docket th

reau also conducted a proceeding of inquiry and investigatio

stituted by the board on its own motion under authority of s

22 of the shipping act into the rates and charges applicab

freight traffic moving from North atlantic South Atlantic and 

ports of the United States to United Kingdom and European 

After an extended hearing at which 16 witnesses gave eviden

the issues involved and oral argument by counsel for the conte

parties was had before the board an existing joint conference 

ment between carriers operating from the three ranges indi

requiring the application by the South atlantic and Gulf ca

of substantial differentials in rates over the North atlantic 

was found to be unfair as between carriers and to operate 

detriment of the commerce of the United States The triconfe

agreement was accordingly disapproved and canceled by f

order of the board

Informal Docket

By section 24 of the rules of practice of the board governing 

cedure under the regulatory provisions of the shipping act sh

and others including carriers are privileged to file with this b

informal memoranda setting forth statements of act or om

of carriers conceived by them to be in contravention of the s

The bureau thereupon by correspondence and informal confe

seeks to bring about understanding and withdrawal adjustm

settlement and to promote and preserve amicable relations be

the parties This docket has been particularly active durin

period of this report as in addition to It cases pending at the 

of the previous year 64 new complaints were entered in whic

assistance of the bureau as an intermediary was requested O

total of 75 cases thus given attention W were closed Results a

plished have been gratifying and the bureau sefforts throug

medium of advice and opinions to induce complaining shippe

respondent carriers to consider the principles governing the m

facts in controversy have in numerous cases averted the fil

formal complaints With two exceptions the cases filed o
NINTII ANNUAL REPORT UNITED STATES SHIPPING 

docket related exclusively to freight as distinguished from 

transportation and while those in regard to tariff interpr

terminal transactions have predominated questions invo

tically every angle of water service were presented for det

Carriers Conferences and Contracts

Thirteen new conference agreements were filed durin

in pursuance of the requirements of section 16 of the s

and were subjected to examination by the bureau as to th

of their terms under the regulatory provisions of that 

amended by the merchant marine act These agreem

greatly in detail according to the particular trades to 

apply or the special requirements of the lines party t

record many important changes in conference relations 

tions designed to protect the interests of American flag ca

prevent possible unjust discrimination between patrons 

ference lines were incorporated as a condition of the boars

in several of these new agreements and in all instances we

by the conferences without dissent Of the 79 confere

ments filed to date 39 are at present operative as well as 

ferences functioning as committees of their respective 

ferences Minutes of 967 meetings recording action of 

conferences and committees in pursuance of their agree

313 conference tariffs were also submitted and given th

attention during the period covered by this report

Copies or memoranda of 66 written agreements or ora

ments between carriers concerning other than conferen

were likewise filed for consideration and approval durin

12 months Dlost of these individual carrier agreement

through billing or prorating arrangements or provide for 

lishment of through rates between United States and for

Yore than half of the memoranda of oral agreements as 

presented were not complete as required by the statute 

siderable number of interviews with carriers representa

necessary before their submission for action by the board

Tariffs

The administration of the requirement of cction 18 o

ping act and the tariff regulations of the board governin

lication posting and filing by interstate carriers operat

high seas and Great Lakes of tariffs showing in d tail 

fares charges classifications and rules in respcet to se

dered by thent was one of the major activities of the bure

the year In all 1427 original freight and passenger scI

ranged in the form and manner ant submitted within th 

scribed by the regulations were accepted and permitted to 
48 NINTH ANNUAL EEPORT UNITED STATES SHIPPING BOAR

in the hands of the carriers agents for posting at piers an

offices for the information and inspection of the public M

these tariffs are participated in by other lines not subject to 

except for their performance of joint interstate transportatio

ices in conjunction with carriers primarily within our juris

Seven hundred and fortytwo concurrences and powers of a

filed on behalf of both classes of carriers through the medium 

tariffpublishing agencies are of record in the bureau sreg

the clos of the fiscal year The publicity of rates as provid

the tariffs filed and posted under supervision and authority 

has proved to be of advantage both to the carriers and the sh

public and has been a considerable factor in the prevention 

evils of unreasonableness and unwarranted discrimination de

by the shipping act to be abolished

To provide for the increasing demand by representatives o

pers and carriers trade bodies and traffic organizations for use 

bureau spublic file of tariffs supplements and rate and traffi

additional space was assigned for their accommodation in t

reau squarters

BUREAU OF OPERATIONS

The Bun an of Operations under the division of duties m

the board is concerned with the supervision of all matters r

to 1 industrial relations including sea service section 2 

and wharves 3 investiygations including study of operatin

and differentials navigation laws and rules and regulations 

ing shipping and foreign trade 4 port facilities

INDUSTRIAL PELATIONs DLi ISION

The Shipping Board is charged with doin everything nec

for the encouragement and daof the merchant m

to meat the requirements of the United States Marine and 

labor represent so important a factor in the success of the me

marine and so vital is the matter of sound industrial relatio

its efficiency that it has been incumbent upon the board t

special study and attention to qut stions involved in labor adm

tion irrespective of any temporary financial gains to be 

thereby

There are few branches of American industry wherein con

of service is more essential than in marine and longshore 

Even a brief stoppage of labor occasions heavy loss to the ship

and unrest or discontent anion the employees eventually res

multiplied operating costs

The division of industrial relations concerns itself with 

matters as they apply to the operation of ships Its activitie
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

be summarized as the investigation and study of questions 

to wages hours of labor and other conditions of employm

the respective privileges rights and duties of employer 

ployee in the merchant marine It endeavors to maintain 

contact with the representatives of the respective unions a

on file a collection of data relative to marine and do

problems

It is a primary function of this division to serve ind

owners and operators of ships as well as the Emergency F

poration of the Shipping Board When grievances arise th

body to take the lead in negotiations with a view to sat

and equitable settlement Naturally such work is simplifi

the negotiators have the confidence of the men consequ

effort is made at all times to make the laborers feel that 

bring their grievances to the board at will with assurance o

ing fair treatment In numerous cases the divisiorn has a

coordinating agency to secure peaceable adjustment of 

negotiating working agreements and promoting better 

between employer and employee

Importance of Centralized Study and Control

The Shipping Board in a way regulates all the shippin

country and is itself the largest owner and operator As 

the expediency of dealing with labor matters alongshore an

ship from a national point of view is obvious Were not a c

policy applied alike in all ports confusion and local dist

would ensue The board has favored the policy of collective 

ing with labor wherever possible and has encouraged a fair 

partial attitude toward organized labor During the latte

the fiscal year the division conducted various conferences 

Marine Engineers Beneficial Association the Ocean Assoc

Marine Engineers the Masters 11ates and Pilots the Neptu

ciation and the International Seamen sUnion as well as ke

touch with the local longshore conferences in the differe

throughout the year There have been practically no ch

wages of marine and dock labor during the fiscal year N

have occurred during the year of any import

Since the Government through the Shipping Board is t

and operator of a large number of vessels it is concerned wi

trial relations from two points of view First the welfare 

manence of the American merchant marine as a whole 

the economical and efficient operation of its own ships 

these various phases of activity requires

a Investigation and tud y of labor relations in the A

merchant marine
50 NINTH ANNUAL REPORT UNITED STATES HIPPING BO

b The readjustment of wares and working conditio

sound principles of economic justice and the peaceable s

of disputes arising therein

e Affirmative action in the promotion of better feeling 

between employers and employees

rd The collection compilation and classifying of data 

and comparison of American marine labor rates and fore

rates and conditions

e General improvement in personnel

The policy of the Shipping Board in making labor readj

on its own ships has been an attempt at working them o

orderly manner through collective bargaining wherever 

The success with which this has been done through the i

relations division resulting in so great a saving in wages 

serious interruption of work tends to justify that policy

Sea Service

The sea service section of the industrial relations divisio

ducted by the Shipping Board in the Americanization e

and general welfare of crews on American vessels being 

line with the promotion work of the American merchant 

Agencies are now maintained in 12 ports namely Bost

York Philadelphia Baltimore Norfolk Savannah New 

Galveston Mobile San Francisco Portland and Seattle

The great purpose of the sea service work is to man the A

merchant marine with Americans Whether the merchant 

employed constantly as the carrier of United States comm

occasionally as a naval or military auxiliary and wheth

privately or publicly owned it is imperative for motives of 

and self defense that the crews be loyal and dependable

It can not be said that we have done everything nece

develop and maintain the merchant marine until provision 

made for carrying American crews The only official agen

United States which is attempting even in a limited way t

American citizens to seamanship is the sea service sectio

division of industrial relations This agency does not co

activities to the Government owned fleet but relates to 

owners and operators as well

To have access to a Government agency which is able 

chargo to supply crews of American citizens should be a gr

especially to the small shipowner who has not developed a 

an organization to attract the best applicants It is the ai

board through its sea service organization to be of materia

ance to the American merchant marine as a whole satisfcin R

need which could not be met in any other way
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

Irrespective of the promotional value of the sea service se

the Americanization of crews on American vessels and in 

provement of the character of such crews from the standp

efficiency alone this service saves to the Government many tho

of dollars annually which otherwise would have to be paid to 

seamen through crimps and other employment agencies 

the standpoint of economy therefore disregarding the adv

of Americanization and morale of crews as a most important 

in the upbuilding and promotion of a merchant marine it mo

justifies itself

Reduction in Expenses

Since the sea service section has been in the Bureau of Op

there has been a constant reduction in costs the total annual 

ranging downward from 177 4094in 1921 to 114 742 00

The following table is a breakdown of the total annual e

over a period of four years

As of Annual Annual Mismllane T

salaries rental ous expense 

June 1921 513120 72 1928 00 68072 

Juno 19 2 119 720 16 18548 00 14956 05 

June 1023 1W 654 32 1824a00 13 M3 04 

June l924 112 50120 18680 04 1617 20 

June 1 925 94660 W 14356 68 52552 

At the present time the per capita cost of placing men i

what higher than the average cost for last year because of 

stantial decrease in the number of men placed Wise selec

personnel in the past probably account for the small turn

crews at this time

Deck Boys

A phase of the sea service recently inaugurated and pro

gratifying results is the placing of deck boys on the cargo 

operated by the Emergency Fleet Corporation and in som

on ships operated by private owners Applicants must be 

can citizens between the ages of 13 and 23 and must desire 

ing essential to developing efficient seamen The purpos

open the door to the American boy to go to sea on Americ

sels and then to educate him in a knowledge and love of th

ice An effort is made especially to reach boys of the 

who ordinarily have no inducement to become seamen n

chance to acquire sea training under ideal conditions Th

gram has resulted in placing over 1425 deck boys since Jun

many of whom have been promoted by the captain to ordina

men and are on their way toward A B certificates
52 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

The total number of boys placed through the Sea Se

reau for the fiscal year just ended was 1425 Over hal

boys received a report on conduct and ability of very 

large per cent qualified for the position of ordinary seama

were 11 transferred to the engine department 8 to stes

partment and only 25 desertions

Nothing can be more important to the American 

marine as a whole than the upbuilding of a real 100 per ce

can personnel and we should continue our efforts to induce 

boys in this way to go to sea and stay at sea

The bureau has had several conferences with the repre

of private American shipowners with reference to adoptin

lar program of placing deck boys which has developed 

where it is morally certain that the private owners will joi

such a plan

Continuous Discharge Books

Another current activity of the division is a study of 

of the continuous discharge book for seamen In cooper

the American Steamship Owners Association and the D

of Commerce there is in course of preparation a bill pro

legislation on this subject Such a system is now in force 

Britain Private steamship owners of America have ad

continuous discharge book It is believed that a plan h

vantageous and satisfactory to all interested parties ca

mulated

The following table shows the number and rating o

placed at each port where a local office was maintained d

year
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

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54 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

PIERS AND WHARVES DIVISION

The piers and wharves division of the Bureau of Ope

charged with the administration and general oversight of 

wharves in possession of the board In connection with th

tion imposed upon the Shipping Board by law to study an

port facilities of the United States section 17 of the merc

rine act provides that the board is authorized and directe

over the possession and control and to maintain and develo

docks piers warehouses wharves terminal equipment etc 

vides further that other similar properties acquired by the 

partment or the Navy Department may be transferred by 

dent to the board to be similarly developed and that non

property shall be sold by the board

The board is directed to maintain and develop such 

wharves coming into its possession for the improvement of 

port facilities and in connection with the development of th

can merchant marine all entirely irrespective of the owne

operation of vessels by the Shipping Board through the E

Fleet Corporation

The Shipping Board at present is possessed of termina

houses supply bases or waterfront property in connecti

with at Boston New York Hoboken and Brooklyn Phil

Norfolk and Charleston

At present the Shipping Board does not itself physicall

any of these properties with the exception of the termina

boken in which case it is the policy to place the actual ma

in the hands of the Emergency Fleet Corporation

The study of port facilities and the handling of matters 

piers and wharves within the Shipping Board comes u

Bureau of Operations of the board In the administration 

properties the Shipping Board determines the policy to be 

a Whether it will itself operate the waterfront pro

question

b Whether it will lease such property to private pa

operation

c Whether it will expand improve or in any way 

property and the general disposition and policy to be fol

connection with the upkeep maintenance and development 

The following detail covers the six terminal properties a

New York Hoboken Brooklyn Philadelphia Norf

Charleston with the exception of IIoboken which will b

under Emergency Fleet Corporation it being operated by t

in conjunction with its own ships

Boston Army Base

The Boston Army base has continued under the operatio

Boston Tidewater Terminal the operating company and h
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

much progress both in the matter of profits from the board s

point and as a commercial water terminal

During the year there were 286 vessels docking at the 

which amounted to 125 berth days There were 263 197 

cargo loaded and discharged at the terminal This is more 

than has ever before been handled at the base in any one ye

This property when operated by the Shipping Board was o

at a loss Since leased however it has gradually been ea

return During the fiscal year ending June 30 1925 the S

Board received 17810 representing two thirds of the net p

in accordance with the terms of the lease

During the year 13214 8 was expended in repairing the 

tion wall under the wharf shed reconstructing crossings and 

ing the roof to the wharf shed

Brooklyn Army Base

Considerable progress has been made in the operation 

Brooklyn Army base During the year there were 216 vesse

ing at Piers 3 and 4 Brooklyn Army base 372 269 tons o

were loaded and 145 477 tons were discharged 269 41 acc

the Shipping Board from the lease for the year No expe

were made for repairs or reconditioning at this base

Philadelphia Army Base

The board controls the Philadelphia Army base in its e

consisting of three piers with 88 acres of land adjacent 

These piers are known as A B and C and are leased to th

chants Warehouse Co which pays the board a guaranteed fla

of 100 0per year for Pier B and 50 per cent of the gross 

from Piers A and C which for the year amounted to 299

a total of 121 997 net to the board

During the year 368 vessels docked at Pier B discharging 

tons of cargo and loading 237 605 tons Piers A and C h

vessels docking which discharged 7712 tons and loaded 199

during the year

The area of land referred to as the 88 acre tract has be

for a number of years The board has been endeavoring h

to have this property improved and developed in conjunctio

the piers Accordingly 25 acres were leased to the Me

Warehouse Co the present lessees of Piers A B and C for 

velopment of a lumber concentration yard By the develop

this yard the tonnage over Piers A and C should materially i

and the board will also receive 50 per cent of the gross receip

the storage of lumber merchandise etc Consideration is 

given several propositions now before the board for the lea

the remainder of this acreage for similar purposes
56 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

Norfolk Army Base

The Norfolk Army base was acquired by the Shipping B

the beginning of the fiscal year subject to an agreemen

into between the War Department and the city of Norfo

agreement contemplates a return to the board of about 60 p

the net proceeds which during the fiscal year amounted t

net to the board

A program for repairing this property was commenced 

transfer there having been no major repairs undertaken a

since its construction in 1918

Charleston Army Base

The Charleston Army base was leased to the Port Utilit

mission of Charleston on July 10 1924 This commission 

the property as a municipal terminal on a basis of 60 per c

net profit to the board and 40 per cent to the commissio

the present this terminal has paid no return to the Shippin

but business is improving and the losses are gradually 

smaller and it is believed that in the course of another 

property will be on a paying basis both to the city and the 

Repairs undertaken at the Charleston Army base consis

such work as is absolutely necessary for its operation 50

expended for this purpose during the year

IxvrsTiGATioNs DlvlsroN

The investigations division is a recent addition to the bu

has practically completed a comprehensive study of steam

services at United States ports Data collected have been re

5 by 8 inch cards each card bearing name of district nam

port of origin ports of destination name and type of ea

in service flag speed deadweight tonnage and frequency 

ings It is expected to keep this file up to date for use i

tion with studies of operating costs and determination of ad

or disadvantages of operating under the American flag

A preliminary survey has been made of the rules and re

effecting shipping in the foreign trade developing the fact 

rules and regulations have been adopted by as many as five 

in other Government departments The question therefore 

one of interpretation of section 19 of the merchant marin

determine whether overlapping authority has been given t

Governmental agencies

Contemplated work by the division covers operating 

under section 12 of the shipping act 1916 and sections 7 

the merchant marine act 1920

Section 12 of the shipping act outlines the duty of de

the extent and character of advantages and disadvantages 
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOARD 

to operation of ships in foreign trade under American and f

registry It is proposed to make a study covering 1 law

regulations aiding as well as hindering the merchant marin

relative to American and foreign costs of labor subsisten

surance and capital 3 the relative efficiency of crews unde

ous flags and 4 the operating advantages and disadvantag

classes of fuel and types of engines

Under section 7 of the merchant marine act it is propos

connection with the record of ships employed in line servic

determine the suitability of various types of vessels for estab

and proposed routes

It is the plan of the division in carrying out the duties as

under section 8 of the merchant marine act to work in coope

with other divisions of the bureau The investigation of the 

ticability and advantages of harbor river and port improveme

connection with foreign and coastwise trade however will b

marily a function of this division

PORT FACILITIES D1vIRION

Paragraph 53 section 8 of the merchant marine act 1920 d

certain duties of the Shipping Board in cooperation with the 

tary of War with the object of promoting encouraging an

veloping ports and transportation facilities in connection with 

commerce The duties thus imposed by law may be divided 

a investigation b advice to communities and c bringi

the attention of the Interstate Commerce Commission such m

discovered under a as seem to call for new rates charges 

regulations or other affirmative action affecting ports or ship

which may come under the jurisdiction of the commission in 

that it may take such action as it may consider proper under ex

law

Under previous laws the War Department has been charged 

certain duties similar to those just named with the exceptio

matters pertaining to the Interstate Commerce Commission 

cifically the river and harbor act approved March 21 1919 a

other things declares it to be the policy of the Congress that 

terminals are essential to all cities and towns located upon ha

or navigable waterways and charges the Secretary of War thr

the Chief of Engineers with the duty of giving full publici

this provision

Section 500 of the EschCummins bill for the termination of 

eral control of railroads February 28 1920 made it the duty o

Secretary of War to investigate certain matters relating large

inland waterways inclusive of the Great Lakes to advise with 

munities cities and towns regarding the appropriate location o
58 NINTH ANNUAL REPORT UNITED STATES SHIPPING 

minals to cooperate with them in the preparation of pla

able terminal facilities and to compile publish and dis

useful statistics data and information concerning transp

inland waterways as may be deemed to be of value to the 

interests of the country

The passage of the merchant marine act 1920 thus 

Board of Engineers for Rivers and Harbors of the W

ment to which the above named duties had been assign

ing for publication a series of documents entitled The P

upon the important seaports of the United States givin

tion not only as to their physical characteristics but also 

data as imports and exports origin and destination of c

believed to be of vital interest to both shippers shipo

operators The Shipping Board at once joined force

Board of Engineers for Rivers and Harbors

During the fiscal year just closed the Shipping Boa

tributed to this work practically the same personnel as 

past several years The activities of the port facilities div

however transferred on September 1 1924 from the Bur

search to the Bureau of Operations

Previous annual reports have recorded progress in this 

end of the fiscal year 1924 showed that Port Series No 

land Ale No 2 on Boston Mass No 3 on Mobile and 

No 4 on Philadelphia Camden and Wilmington and No 

Orleans had been published and made available for dis

interested parties For certain other ports the manus

been completed and sent to the printer

During the fiscal year just completed reports Nos 6 

ton Houston and Texas City Tex 7 on Seattle Tacom

Bellingham and Grays Harbor Wash 11 on Po

Astoria Oreg and Vancouver Wash 13 on Los An

Diego and San Luis Obispo 14 on Port Arthur Sa

mont and Orange Tex and 19 on Pascagoula and Gulf

were issued and distributed Each issue of a new docum

series has increased the demand for previous documents 

the publications have been so popular that it has been ne

the Government Printing Office to print second editions 

instances

During the past year the manuscripts of numbers in 

including that on the port of New York have been com

sent to the printer The past fiscal year has added a vo

the Great Lakes entitled Transportation on the Great 

the series It is deemed wise to treat the Great Lakes 

Great Lakes traffic along somewhat different lines f
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

adopted for the seaports The scope of the Great Lakes 

shown by the following table of contents

I General description of the Great Lakes system

II Laws treaties and regulations

III Vessels of the Great Lakes

IV Commerce

V The grain movement

VI The ore movement

VII The coal movement

VIII Other bulk freight

Il Package freight

S Car ferry traffic

XI Summary

It is believed that this Great Lakes report will be useful 

in the same sense as those of the series upon the seaports but 

it contains information useful in the study of the Great 

St Lawrence waterway now under consideration by a speci

of engineers

The previous annual report estimated the state of comp

the entire series at SO per cent Inclusive of the Great Lakes 

the present estimate is 81 per cent for the enlarged serie

following table gives percentages of completion as of June 

in detail

Train serial five Ports

volume NO of

11 Portland Me

12 Boston Niles

13 Mobile Me

Pensacola Fla

4 Philadelnrie Pe

15 I

New Orleans La

18 Galveston Tex

Iloustogg

Texas CityTea

17 Seattle Wash

Tacoma Wash

Bellingham Everett Wash

Grays Barber Wash

1 8 Jacksonville Fla

Fernandina Fla

Miami

Key West

Fla

Fla

Tampa Fla

South Boca Grande Fla

19 Charleston S C

Wilmington N C

10 Savannah

Brunswiek

Ga

Ga

Ill Portland dreg

Astoria Greg

Vancouver Wash

12 San Francisco CaliL

Oakland Calif

Berkeley Calif

Richmond Calif

Uppper San Francisco Buy

I interey CnliL

Santa CruzCalif

I Available for distribution

67677255

erauf magempple of140 1925 II volume Tenta Noserial giveof

13

I

Ports 

Ion Los Angeles Calif 

100 San Diego Calif 

am San Luis Obispo Calif 

too 14 Port ArthurTex 

Joe Sabine Tex 

loo BeaumontTex 

100 Orange Tel 

100 15 Norfolk Va 

100 III Pomsmon Va 

IM Newport NewsVa 

100 15 Baltimore Md 

100 Washington D C 

1W Alexandria Va 

100 117 Ilawaiian ports 

loo 18 New London Conn 

I00 BrldeePOrL Conn 

Itsam

New Haven Conn

Norwalk Conn 

100 i

Stamford Conn 

am gig Pascagoula Miss 

100 Gulfport Miss 

100 20 Gloucester Mass 

100 Beverly Mass 

I Salem hlasa 

100 Lynn Mass 

100 Newburyport Mass 

100 Portsmouth N H 

011 21 Fan loan P R 

1W Povce P R 

100 22 New Bedford Mass 

80 Fall River Mass 

0So Prodente RS 

so 23 Panama Canal ports 

so 124 New York 

8 I

Great Lakes volume 1 

1 Now In Government Printing Offm
gQ NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

In the matter of advice to communities regarding the ap

location and design of water terminals there has been co

ence with various Gulf and Pacific ports as well as wit

inland ports inclusive of some on the Great Lakes and 

the interior rivers In this connection visits were made 

seaports on the South Atlantic and Gulf coasts inclusive 

sacola St Petersburg Tampa Miami and Jacksonville 

vannah Ga New Orleans and Lake Charles La Newa

Chicago Ill and Rochester N Y

BUREAU OF CONSTRUCTION

In the division of work incumbent on the Shipping Bo

relation to the privately owned and privately operated 

marine duties arising under sections 9 and 12 of the shi

1916 and sections 11 and 23 of the merchant marine act 

been assigned the Bureau of Construction of the board 

bureau has also been assigned supervision of the program 

ized by the amendment dated June 6 1921 of section 

merchant marine act for the conversion of a number of t

of the Government into motor ships

Under the provisions of section 9 of the shipping act 

unlawful to sell transfer or mortgage or except under r

prescribed by the board to charter any vessel purchased 

board or any vessel documented under the laws of the Uni

to any person not a citizen of the United States or to put 

vessal under a foreign registry or flag without first obta

board s approval That part of this provision which 

chartering a vessel under such circumstances except un

lations prescribed by the board has been covered by res

the board which authorizes the charter of any such ves

person not a citizen of the United States for any term not 

one year In all cases where it is proposed to sell or mor

vessel purchased from the board or documented under th

the United States to any person not a citizen of the Unit

such sale or mortgage must first be approved by the Shippi

and when it is proposed to put any such vessel under 

registry or flag notwithstanding the ownership of the v

remain in a person who is a citizen of the United State

proval of the board must be first obtained

The policy controlling the board in respect to such sale

or transfers to foreign registry is based primarily in not 

vessels of a type and kind deemed by the board necess

upbuilding of the American merchant marine to pass from 

diction of the United States Government by their transfer 
NINTH AN UAL REPORT UNITED STATES SHIPPING BOAR

flag or to have any conflict in respect to the use of any such ve

times of national emergency because of their ownership by 

not citizens of the United States

In addition to the fundamental principle controlling this 

another aspect of the matter is presented by the Volstead Act 

extensive use of vessels in the illicit transportation into the 

States of alcoholic liquors commonly referred to as rum ru

The board has been requested by the Department of Justice 

operate by imposing as it is authorized to do under the pro

of section 41 of the shipping act 1916 a condition in ap

under section 6 which condition reads as follows

That the said vessel shall not be used for the importation into or exp

from the United States of America of any spirituous vinous mal

mented or other intoxicating liquors of any kind or of any articles p

goods wares or merchandise in violation of the laws of the United 

that this condition shall run with the title to the said vessel for the 

guaranty of the strict performance hereof that upon any breach of t

dition by the purchaser and or transferee of said vessel or his t

Its successors in interest the permission hereby granted shall be and 

null and void and without effect and thereupon said vessel shall be imm

subject to seizure libel and forfeiture to the United States of Americ

ever and whenever found without compensation to any person therefo

In those cases where it is clear a vessel because of its typ

kind is unfit for such service as that prescribed by the abov

dition the board may for special reasons omit the condition 

the formal approval As the smaller type of vessel is the 

usually used for such service the board frequently permi

issue of approvals of transfers of vessels without condition wh

approval is otherwise proper when the vessel exceeds 2500 

weight tons

A person wanting the approval of the board to any such s

transfer is required to present a formal application containi

relevant particulars including a certificate of the collector o

toms at the home port of the vessel certifying the name of the p

registered owner and what if any mortgages or liens are o

The last requirement namely certifying the names of mortg

or lienors though not required by law is usually but not a

required by the board as vessels should not be transferred to fo

registry if creditors in the United States have claims again

vessel

As the Canadian Government has objected to receiving tra

to Canadian registry with the condition mentioned above att

the board has in several special instances issued certificates o

proval without the condition in it accepting in lieu of such 

dition a joint and several bond from the seller and the buyer o
G NINTH ANNUAL REPORT UNITED STATES SHIPPING 

vessel that the penal sum named in the bond would be 

any instance within a period of five years the vessel 

alcoholic or spirituous liquors in violation of the cove

bond which covenant is expressed in terms similar to th

quoted above even though such transportation should 

the connivance of the owner or officers of the vessel and 

it should be subsequent to the sale of the vessel by the pe

the bond The following is a statement of transactions 

occurred in these matters during the present fiscal year
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NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

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66 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

If the vessel whose transfer has been permitted but with 

tion annexed to the approval violates the condition the stat

vessel is the same as if the transfer or sale had been made 

the approval of the board in the first instance

Construction Loan Fund

Section 11 of the merchant marine act 1920 authorizes t

during the period of five years from the commencement of 

June 5 1920 to annually set aside out of the revenue f

and operations a sum not exceeding 25000 to be kno

construction loan fund the original provisions of whic

were amended by the act of June 6 1924 The board is p

to use the fund thus created to the extent it thinks prope

terms as it may prescribe in making loans to aid citizen

United States in the construction in shipyards within th

States of vessels of the best and most efficient type for the 

ment or maintenance of service on lines deemed desirable 

sary by the board or to aid in the outfitting and equipmen

yards within the United States of American vessels alrea

with engines machinery and commercial appliances of 

modern and the most efficient kind including the most e

engines machinery and commercial appliances

Under the terms of the act no loan can be made for a lo

than 15 years and if it is not to be repaid within two ye

the date when the first advance on the loan is made the 

shall be payable in installments at intervals not exceeding t

Each installment shall be not less than 6 per cent of the 

amount of the loan if the installments are payable at int

one year or less an amount not less than 12 per cent of the 

amount of the loan if the installments are at intervals 

one year in length The loan may be repaid at any tim

days written notice to the board with interest computed t

payment

Loans from the construction loan fund made since th

ment of June 6 1924 bear interest at rates to be fixed by 

payable not less frequently than annually with minimum 

less than 5 per cent for any interest period in which 

is operated exclusively in coastwise trade or is inactive an

than 41 per cent during any interest period in which the 

operated in foreign trade No such loan can be for a gr

than onehalf the cost of the vessel or vessels to be cons

more than onehalf the cost of the equipment hereinb

thorized for the vessel already built unless security is fur

addition to a first preferred mortgage on the vessel or 

which event the board may increase the amount loaned 

additional amount shall not exceed onehalf the market va
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

additional security furnished and in no case shall the total 

for a greater sum than twothirds of the cost of the vessel 

sels to be constructed or more than twothirds of the cos

equipment and its installation for vessels already built

The total amount credited to this fund by the Treasury 

ment during the fiveyear period has been 73090 661 10 T

ance on hand July 1 1094 was60881 93 62and the receip

sales

6

and interest during the fiscal year ending June 30 1

382 071 20in addition to which 20000 was received on 

of payments of principal During the year however the 

11808 729 48 was transferred from the account back to 

eral fund of the United States Treasury on the ground tha

posit was not justified by the provisions of the act

The loans made from the fund from the commencemen

present time are as follows

A 400 0 to the linnesotaAtlantic Transit Co in 

the construction of the vessels Twin Cities and Twin P

notes for the repayment of which are the joint and sev

ligations of the Minnesota Atlantic Transit Co and the Mc

Terminal and Warehouse Co and are secured by a first p

mortgage on the two vessels above named

B 1825 000 to the Eastern Steamship Lines Inc i

the construction of the vessels Boston and New York t

for the repayment of which are the obligations of the 

Steamship Lines Inc and are secured by a first preferre

gage on the two vessels named

C 1000 to the Robert E Lee Steamship Corporatio

of the construction of the steamship Robert E Lee the note

repayment of which are the joint and several obligations 

Robert E Lee Steamship Corporation and the Old Dominion 

ship Co and are secured by a first preferred mortgage on t

named

All the foregoing loans have been advanced the vessels co

and in commission

In addition to the foregoing the following loans have be

and advances thereon have been partly made as follows

A 2GGG 000 to the Cherokee Seminole Steamship Cor

on which to June 30 1925 1935000 has been advanced i

the construction of the steamships Cherokee and Seminole fo

the board holds the joint and several notes of the Cherokee 

Steamship Corporation and the Clyde Steamship Co secu

deed of trust under the laws of the State of Virginia cove

two vessels in the process of construction at the yard of t

port News Shipbuilding and Dry Dock Co Newport News 

B 1500 0 to the Coamo Steamship Corporation o

loan no advances have yet been made the loan however hav

076772x6
6 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

assured in aid of the construction of the steamship Coa

vances will be made during the progress of the constructio

notes taken will be joint and several notes of the Coamo S

Corporation and the New York and Porto Rico Steamship C

notes will also be secured during the construction perio

vessel by a deed of trust under the laws of the State of 

as the vessel is being built at the yard of the Newport Ne

building and Dry Dock Co located at Newport News Va

In addition to the above loans a resolution of the board 

passed authorizing a loan of 600 0 to the New York Shi

Corporation in aid of the construction of a tanker that co

now building in its yards the contract for this loan how

not been consummated and under the terms of this and 

resolutions heretofore made authorizing loans the loan m

voked at any time before the execution of a formal contra

The total amount of loans as shown above thus far m

authorized is7991 000

As a preferred mortgage can not be taken on the hull o

during its period of construction the security usually take

board has been in the form of mortgages or deeds of trust 

State law where the vessel is being built which mortgag

ceeded when the vessel has been completed and has been doc

by a first preferred mortgage under the ship mortgage 

thus complying with the requirements of the law that in all 

board shall have a first lien upon the vessel in aid of w

struction the money is loaned To give the board this 

during the construction period it has been required of th

to subordinate any lien the builder might have to the lie

United States as security for the loan

To justify advances made on account of the loan during 

struction period the builder has been required to give a bo

United States guaranteeing the completion of the vessel fo

tract price In those instances where advances during the 

tion period are not required such bond by the builder to 

ernment is not required Persons applying for loans are re

submit a formal application giving relevant information 

their business integrity and financial ability together with 

of their experience and ability to successfully operate vess

thorough examination is given by the credit officer of the b

cerning the financial standing of the applicant Such form

cations must contain the following information

After an appropriate title reading substantially as follo

plication of the for a loan from the construction lo

under section 11 of the merchant marine act 1920 and afte

the amount of the loan desired the application should give 

lowing information
NINTII ANNUAL REPORT UNITED STATES SHIPPING BOARD 

1 Name of applicant main address and address of all age

place and date of incorporation Annex copy of articles of inc

I ation

2 Names addresses and nationality of each of the officers 

directors and of each of the 10 largest stockholders if an

naturalized citizens date of naturalization and place of nativ

3 The capital stock the amount authorized and that ac

paid in What proportion of the stock if any is in the name 

is beneficially owned by persons not citizens of the United Sta

4 The funded debts of the applicant showing in detail the 

ous kinds of funded obligations outstanding and as for as po

by whom its bonds etc are chiefly held

o A fall and complete statement of the applicant sfinancia

dition including a balance sheet showing assets and liabilities 

certified by an accountant acceptable to the board

G A statement setting forth the assets of the applicant with 

current market value verified by an appraiser acceptable t

board

i A statement of all mortgages liens conditional sales 

ments etc affecting any of the assets enumerated including 

ing shits which if judgment is adverse may affect applicant 

assets

8 In addition to a first lien on the vessel to assist in whos

struction the loan is asked what other security if any is ten

9 If a guaranty of the repayment of the loan is to be ma

some other person or corporation state such facts as will ev

the value of such guaranty and whether such guarantor wi

a mortgage on any of its assets to secure its undertaking

10 If applicant or if any one owning a substantial part 

stock of an applicant corporation is engaged in any busines 

than the operation of vessels as common carriers state gen

what the business is and whether the proposed new vessel m

lised in the transport of the supplies or products of such 

business

II

AS TO THE EssEL

11 State a The type and kind of vessel in whose constr

the loan would be used b its main dimensions and estimated 

weight tons c the type of engine and propulsive power d 

estimated speed e the fuel to be burned f plans and sp

tions must be submitt dwhen ready

12 The special trade or route if any for which the ve

planned and in which it will probably be operated
QO NINTH ANNUAL REPORT UNITED STATES SHIPPING B

13 If the construction contract for the vessel has not b

state a That it will be built in the United States b 

mated cost of construction c supporting evidence s

estimated cost will probably equal its reasonable market 

finished

14 If the contract for its construction has been awa

a The shipyard in which it will be built b the am

contract price c what competitive bids were receiv d 

plans and specifications e whether plans have been pa

Ara rican Bureau of Shipping f copy of contract fo

tion g evidence the contract cost will probably equal its 

market value when finished

15 If the following farts have been determined also 

The builder shull number b the name the vessel has o

c at what United States port the vessel has been or w

mented d the name and address of the managing owne

ing agent

The closing paragraph to read as follows

The statements of facts made above are accurate and are made 

iose of inducing the United States Shipping Board to grant a 

cant from its construction loan fund authorized under section 1

chant marine act 1020 Any other information required by the S

will be furnished on request

The application should be signed by the president of 

tion and by its treasurer and duly sworn to by the presi

The period of time within which the construction loan 

be set up expired on June 5 1925 While ample fund

received from sales of vessels and other property durin

year period to have justified the setting aside of the en

125 000 authorized by the act that total sum was n

in large measure because appropriation acts had requ

part of proceeds of sales to be applie lto current expen

tions and funds were therefore not always available for 

allotment to the construction loan fund

During the period of five years however the board 

promissory notes bonds letters of credit and other evide

for the payment of the purchase price of various vesse

property that had been sold the sales having been made 

to procure better prices for the Government On Ap

realizing that the period of time was abort to expire w

deposits could be male to the credit of the fund the bo

resolution setting aside in the fund a group of these s

greratinn 19541 373 27 Any technical question of 

deposit such proceeds in the fend could have been elimin
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOARD 

sale of the securities and the deposit of the proceeds of sale i

fund within the time limit named in the act Such a sale how

could not have been consummated except at a substantial disc

the board therefore elected to deposit the securities thems

The deposit of the securities has been disapproved by the C

troller General of the United States notwithstanding the na

underlying equity in support of the action of the board

During the fiveyear period through which the construction 

fund was to be set up as provided in section 11 of the mer

marine act 1920 which period of five years ended June 5 192

following allotments were made to the fund namely For the 

ending June 5 1921 nothing for the year ending June 5 

25000 for the year ending June 5 1923 25000 in 

tion thereto 11808 729 48which was also added to the fund be

that amount was also available as proceeds from sales was add

the fund in lieu of the fact that nothing was added for the 

ending June 5 1921 subsequently however as hereinbefore 

tioned the Treasury Department disallowed this allotment 

the year ending June 5 1924 11281 93 62for the year e

June 5 1925 6282 071 20in cash and in addition thereto the s

ties hereinbefore referred to

It is the belief of this board that Congress intended a constr

loan fund to be created in the sum of 125 000within the five

period named provided sales of ships and other property yi

that amount during that period It is obvious that the amou

posited in the fund in the form of securities does in fact rep

proceeds of the sales of vessels etc It is equally obvious tha

11808 729 48referred to above being proceeds of sales of v

etc during the fiveyear period as a matter of substance bAon

the fund and its disallowance by the Treasury Department is 

upon a very technical interpretation of the act The total am

credited to the fund in cash should have added to it the 1807248

referred to above and also all proceeds of the abovementioned s

ties if appropriate legislation to that end is obtained in additi

which Congress should be requested to make possible the comp

of the fund to the maximum named in the original act

DIESEL PROGRAM

As mentioned in the report for the fiscal year ending June 30 

the board took immediate steps on the passage of the act of Ju

1924 making available an amount not exceeding 25000 fo

stalling internalcombustion engines in vessels of the Governme

give effect to the provisions of the act by the appointment of a 

mittee of experts to study the various types of internalcomb
72 NINTH ANNUAL REPORT UNITI J STATES SUIPPING 

engines with special reference not merely to adopting a

type for use in the American merchant marine but to cr

tition in the development of the various types and to p

manufacture of such engines in the United States and 

development of skilled workmen in this field among the 

the United States after due investigation and cons

committee mentioned made recommendations to the boa

board after due consideration authorized certain contra

construction of internalcombustion engines for the eq

14 of its vessels by resolution dated November 8 1924 as 

Whereas the provisions of section 12 of the merchant marine 

amended June 6 1924 authorize this board as a part of the wo

tioning vessels under its control to substitute the most modern 

and most economical types of internal combustion engines as t

pulsive power of vessels and

Whereas acting under the direction of this board investigatio

conducted by a committee of which Commissioner W S Benson h

vision having in view the selection of appropriate types of intern

engines to be installed in some of the vessels of the board the res

investigations are set forth in a report dated November 6 19

B D Gatewood manager a duplicate of which report is filed 

Information Now then as the initial step in the reconditioning 

of vessels of the fleet it is

Resolved That the chairman of the board is hereby authoriz

of the board to execute contracts on the basis of the revised pr

in the above mentioned report for the following approved type

combustion engines viz

SINGLEACTING ENGINES

Four 3000 S H P Busch Sulzer Diesel Engine Co St Louis 

Four 2800 S H P Cramps Ship Engine Building Co Philad

Three 2700 S II P McIntosh Seymour Corporation Auburn 

Two 2000 S H P Pacific Diesel Engine Co Oakland Calif

DOUBLEACTING ENGINES

One 3000 S II P IIooven Owens Rentschler Hamilton Ohio

One 2700 S II P McIntosh Seymour Co Auburn N Y

One 3050 S H P New London Ship Engine Co Groton Con

Two 2000 S H P Worthington Pump Machinery Co Buffalo

Resolved further the sum of four million three hundred and 

dollars4350 00 is hereby appropriated and made available f

arising under contracts which may be executed in accord with 

thority including such spare parts for the engines as may be e

such contracts

Resolved further All contracts executed pursuant to this reso

subject to and conform with the requirements of section 12 of 

marine act 1920 as amended by the act of June 6 1924 The g

of the board is directed to prepare the necessary contracts there

preparation the selection of the vessels to be thus reconditione
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

stallation of the engines together with auxiliaries and equipment 

vessels shall be under the direction of Commissioner W S Benson w

make frequent reports to the board in connection therewith The E

Fleet Corporation is directed to cooperate with Commissioner B

carrying into effect the provisions of this resolution

A resolution supplemental to the above was passed by the b

December 2 1924 reading as follows

Whereas a resolution was passed by the board on November 8 

thorizing certain contracts for the purchase of internalcombustio

engines by which resolution it was the intent of this board to reserve 

full control through appropriate officials of any and all contracts m

suant thereto both as to their terms and as to their performance wh

lution however it is claimed inadequately reveals the intent mention

then to emphasize the intent and purpose of this board and as a supp

its resolution of November 8 it is hereby

Resolved That the performance of any and all contracts executed 

of the board under authority of the resolution mentioned above and 

ments made pursuant to such contracts shall be subject at all time

supervision of this board acting through agents it will from time to 

ignate

Resolved further That Commissioner W S Benson is hereby req

give Iris general supervision to the performance of all such contract

ing the supervision of the selection and appointment subject to exis

visions of law of such supervising engineers assistant engineers ex

spectors and other personnel as he may deem necessary for adequa

vision and inspection

Resolved further That Bear Admiral W S Benson United States 

tired is hereby requested to serve as referee to whom shall be ref

disputes which may arise in the interpretation application and pe

of any such contracts and of any documents referred to therein or c

compensation claimed thereunder If Admiral Benson accepts this 

tion all such contracts shall contain an acceptance provision namin

referee for such purposes whose decision shall be binding on all partie

contracts

Pursuant to the foregoing resolutions the following contra

duly entered into with the parties mentioned as follows

a BuschSulzer Diesel Engine Co St Louis Mo c

dated December 22 1924 covering four 6cylinder 2cycle 

acting engines 3000 brake horsepower in the total sum of 

b McIntosh Seymour Corporation auburn N Y 

dated December 22 1924 covering three 6cylinder 4cycle 

acting engines 2700 brake horsepower in the total sum of 

c Pacific Diesel Engine Co Oakland Calif contra

January 22 1925 covering two 8cylinder 4cycle single a

gines 2900 brake horsepower in the total sum of 47400

d Hooven Owens Rentschler Co Hamilton Ohio 

dated December 22 1924 covering one 4cylinder 2cycle 

acting engine 300 brake horsepower in the total sum of 28
74 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

e McIntosh Seymour Co Auburn N Y contract 

cember 22 1924 covering one 4cylinder 4cycle double a

gine 2700 brake horsepower in the total sum of 228 550

f New London Ship Engine Co Groton Conn 

dated December 22 1924 covering one 4cylinder 2cycl

acting engine 300 brake horsepower in the total sum of 

g Worthington Pump Machinery Co Buffalo N Y 

dated December 23 1924 covering two 4cylinder 2cycl

acting engines 2900 brake horsepower in the total sum of 

Due to certain desirable modifications slight changes w

in the brake horsepower ratings of the engines to be furn

the Hooven Rentschler Co and New London Ship En

between the time of the passing of Shipping Board res

November 8 1924 and the execution of the contracts

The proposed contract with the Cramps Ship Eng

Bui

Co which is one of those enumerated in the above resol

not in fact entered into because the engine manufacture

company was covered by foreign patents and the relatio

Cramps company with the foreign owners of the patent 

that they would not assure to the Government full freedo

examination of all structural or trade secrets incident to th

Inaddition to the engines covered by the above contra

engines are intended to furnish the main propulsive pow

vessels various contracts have been entered into as fo

smaller internalcombustion engines for auxiliary servic

vessels

a McIntosh Seymour Corporation Auburn N Y 

dated April 20 192 covering nine 2cylinder 4cycle sin

Dieseltype auxiliary marine oil engines 108 brake horse

the total sum of 1445

b Worthington Pump Machinery Corporation New 

Y contract dated April 20 1925 covering six 3cylinde

singleacting Dieseltype auxiliary marine oil engines 

horsepower in the total sum of S0380

c Pacific Diesel Engine Co Oakland Calif contr

June 1 192 5covering twentytwo 3cylinder 4cycle sin

Dieseltype auxiliary marine oil engines 108 brake horse

the total sum of 277 325

In addition to the foregoing contracts for engines va

tracts have been entered into and others remain to be entere

incidental equipment such as gnerators air tanks pump

By resolution of the board dated April 7 1925 the 

steel vessels were selected as vessels to be converted from 

cating engines to internalcombustion engines all of th

cargo vessels at present equipped with reciprocating engine
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOARD 

a Eight vessels of 0400 dead weight tons built by the 

Daniels Shipbuilding Co

b Three vessels of 800 dead weight tons and one ves

8371 dead weight tons all built by the Los Angeles Shipbu

Co

c Two vessels of 8624 dead weight tons and 8625 dew

tons respectively built by the Columbia River Shipbuilding 

making a total of 14 vessels of 127 20 dead weight tons as fo

Vessel Loea

vest Harts San Fra

West Hartland Seattle

Crown City New Yo

West Honaker TJames R

West Cnssetn Do

West Grama New Yo

Yomachichi James R

Wilscox Mobile

Tampa James R

Seminole New Yo

Unh oi James R

Sawokla Do

City of Rayville Do

City of Dalhart Do

As all the contracts above mentioned contemplated entirel

building programs to produce the engines involved consid

time was expended in preliminary work with the result that th

payments on account of the contracts during the fiscal year e

June 30 1925 aggregated only 285 0600 which amount wa

as follows

1 To the Worthington Pump Machinery Corporation 3

9

2 To the McIntosh Seymour Corporation 164 

3 To the Pacific Diesel Engine Co 81 

3

The total commitments under the contracts thus far ma

080 435 31 This does not include exp nscs incident to the 

installation of the Diesel engines auxiliaries and other nec

equipment nor does it include any items of incidental equipm

sential to the success of the entire program It is estimated th

total amount required to complete the conversion of the 14 

mentioned above ready for service will be about803800 

is expected they will be completed ready for commission 

cember 1926 or January 1927

It was deemed most advantageous to the entire industry th

Shipping Board should buy all auxiliaries direct rather th

have one contract with a shipyard for the complete installat

Diesel power on each ship and providing that the shipyard

chase the auxiliaries Therefore this division proceeded w
76 NINTH ANNUAL REPORT UNITED STATES SHIPPING 

preparation of specifications for the direct purchase o

iaries The material benefit that could be expected to ac

reductions in price on account of the purchase of so ma

articles in mass has been fully realized

Bids were received for auxiliary engines main thrus

gengrators electrical equipment for deck auxiliaries 

warping winches electric cables and starting air tank

following companies

Name of unit Number re1

Did awarded t

Ausilisa y egroes 37 McIntosh Seymour Corporati

Pump Machinery Corporatio

Engine Co

Slain thrust bearings 14 1 Kingsbury Machine works

Generators 42 Ridgeway llYnxmo Engine Co

Ashi Shunt brokes nr hips euuiUme tL

Cutlerllsumer lo

Motors and controls for 14 ships crimp 1Westinghouse Electric Manfactu

Cargo newtwinches 140 Limcre Manufacturing Co

Warping winches 14 Do

Electric cable D7 10a feet Standard Underground Cable Co

Starting air tanks 4 Moore Dry Dock Co

14 Newport News Shipbuilding Dry 

8 I New York Shipbuilding Corporatio

In addition to the vessels in respect to which work is no

ress the conversion of other vessels will also be underta

course It is not intended to duplicate the type of engines 

construction until actual experience has been had with ea

types and their possibilities axd relative desirability ha

been adequately d monstrated Owing to the rapid deve

internal combustion engines and the fact that other desi

will soon be introduced in this country the conversion o

sels in addition to those enumerated above may be und

the near future When the work on these vessels has been 

and tests have been made as contemplated the board will 

a position to definitely determine which types of engine 

to install in other vessels which may be converted all wh

will probably be cargo ships although some of them may 

the cost of conversion will be approximately the same in 

It is difficult to estimate whin the last ship of the entir

will be completed as it is uncertain what lap e of time 

between finishing the present program and the active in

work on the balance of the entire group of approximate

It is believed however that as a rsult of the experience 

engine builders in the present program when work is sta

remainder of the ships much more rapid progress will be 

possibly at lower cost per vessel as the builders will hav

valuable manufacturing cost records and shop experience 

present program
NINTH ANNUAL REPORT UNITED STATES sHIPPINO BOAR

Much interest is evidenced by private persons in the prese

of the Government us all operators of Teasels recogni

efficient internal combustion propulsive machinery has great 

iaes over the oldtype marine engine hecause of the great sa

fuel through the higher efficiencies obtained and the further 

tion in operating costs due to tine engine room staff being s

tially reduced in numbers in addition to which the prob

bunkering is greatly reduced

File act authorizing these expenditures in the conversion of 

cxpresly provides that any vessel so equipped by the hoa

not be sold for a period of five years from the late the inst

of the new equipment is completed unless it is sold for a p

less than the cost of installation thereof and of any other w

reconditioning clone at the same time plus an amount not le

Flo for each deadweight ton of the vessel as computed befo

reconditioning thereof is commenced The date of comple

uch installation and the amount of the deadweight tonnage 

vessel is to be fixed by the board In fixing the minimum 

ca hick the vessel may thus be sold the board may deduct fr

aggregate amount above prescribed 5 per cent thereof per 

front the date of the installation to the date of sale as depr

It is further provided by the act that any such vessel shall 

documented under the laws of the united States for a pe

not less than five years from the date of the completion of 

Udlation and durinl such period it shall be operated 

voyages which are not exclusively coastwise

Replacement of Vessels

Under the direction of the Bureau of Construction plan

been completed during the fiscal year by Gibbs Brothers 

New York for two vessels of the general type of the ste

George 11ashington but on an improved and enlarged scale 

an appropriate time it is the purpose of the bureau to urge th

and Congress to proceed with the building of vessels 

type and kind on the ground that the American merchant 

possesses too few passenger vessels capable of competing w

great liners under foreign flags These proposed vessels w

signed in full contemplation of their possible use as naval au

and the plans in this respect have been given the tentative a

of the Navy Department

The subject of replacements to succeed the existing m

fleet of the Government whether sold to private parties or 

their operation in part is continued by the Government its

been considered Any policy based solely upon the assumpt

a guarantee of service attached to the sale of a line is any as
78 NIA TH ANNUAL REPORT UNITED STATES SHIPPING BO

whatever of the permanent continuance of the service 

guarantee does not include a provision for replacement of t

is an illusion in so far as it affects the permanent upbu

the American merchant marine A buyer may guarantee t

tion of a route for a period of time named in his contract 

sales price of the vessel because of the guarantee is low 

offset deficits accruing during the period for the vessel w

an asset at the expiration of the time and can them be s

market value free of the guarantees of service and the pr

sale may exceed the deficits

Unless profitable in itself as an operating proposition 

ciently profitable to justify replacement of vessels the r

obviously be dropped so far as the American flag is con

the end of the time and the only function the sale tho

the guarantee has discharged has been that of the liqui

the line as an asset of the Government and not in the least a 

tive factor in the permanent upbuilding of the merchant m

The trend of American shipping compared with British 

during the past three years is obvious from statistics con

the British publication known as Lloyd sRegister for th

from which it appears that in 1923 the British Empire ha

of 1064 steam and motor ships aggregating 21695 074 g

in 1924 that Empire had 10078 steam and motor ships ag

21546 04 gross tons in 1925 that Empire had 10068 s

motor ships aggregating 2190724 gross tons The dat

United States for the same years is as follows The United 

1923 had 4217 steam and motor ships aggregating 15622

tons in 1924 the United States had 3992 steam and motor 

gregating 14706 57 gross tons in 1920 the United States 

steam and motor ships aggregating 14208 41 gross ton

significant than these figures however is the fact that th

of tonnage under con truction for the 12 months ending 

1925 was as follows In Great Britain 1093 587 gross to

United States 92001 gross tons showing a preponderance 

of Great Britain of tonnage under construction of over 

gross tons

The Shipping Board fleet has at present only 27 passeng

These have a gross tonnage of 421 294 and an average a

years There is little doubt that these vessels are a min

carry on our trade in cargo and passengers on the routes o

they are now operated In the case of passenger and carg

on the North Atlantic particularly is the American fleet m

quate the vessels operated by the United States Lines const

unbalanced fleet of passenger and cargo vessels and it is 

cable to give with this fleet a passenger and cargo service c
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

favorably infrequency and regularity of sailings and type o

modations to that provided by the great foreign lines

If our American fleet in the North Atlantic is to be bro

to a reasonably competitive position it is desirable that 

vessels plans for which have been prepared as hereinbefo

tioned be constructed to operate in conjunction with the La

to British channel ports thus providing a weekly service u

American flag for the transportation of mail passengers an

These vessels should be approximately 30000 tons each with 

consideration given to the practicability of using internal com

engines as the main propulsive power of the vessels givin

a speed of about 20 knots They would have capacity for a ve

number of passengers and a cargo capacity of about 6000 ton

can be designed so as to be convertible into auxiliaries of th

in time of war including use as airplane carriers In con

the problem of passenger transportation there should be reme

that there is no reservoir of laidup fleets from which can be 

vessels under the American flag to supply deficiencies 

service

The average age of the 27 passenger vessels in the Gov

fleet is six years Assuming that the life of the vessels is 2

another 3 years must elapse before any replacements can 

structed and put into operation The replacement of the f

have to be accomplished within the period of 16 years wh

require the construction of about 26000 gross tons of passen

sels per year This is in addition to the construction of 

combined passenger and cargo liners required for the North A

service Including these two vessels the building program 

involve the construction of an average of 30000 gross tons 

senger vessels per year during the period front 1928 onward

American Bureau of Shipping

The interest of the Bureau of Construction in the welfa

development of the American Bureau of Shipping has be

tinued and concrete work has been done in this connectio

American Bureau of Shipping is an organization having 

functions to the British Lloyds to the French Bureau Verit

to similar organizations in other maritime countries and i

tained primarily for the classification of vessels

Realizing the importance of having an organization wi

functions wholly free of bias in favor of foreign shipping to 

American vessels it is provided by section 25 of the merchant 

act 1920 that all departments boards bureaus and commiss

the Government shall recognize the American Bureau of S

as their agency in such matters so long as that organization co

to be maintained as an organization which has no capital sto
SO NINTH ANNUAL REPORT UNITED STATES SHIPPING B

pays no dividends The act provides as further evide

national recognition of the organization that the Secretar

merce and the chairman of the Shipping Board shall eac

one representative as representing the Government upon 

tive committee of the American Bureau of Shipping and t

can Bureau of Shipping shall agree that these representa

be accepted by them as active members of such committee

During the fiscal year the Bureau of Construction ha

the cooperation of the Department of State in further d

the full recognition of the American Bureau of Shippin

eign Governments

It is the practice of the board in all cases where loans 

from the construction loan fund or where benefits ar

under section 23 of the merchant marine act 1920 to re

sels receiving benefits thereunder to be classified by the 

Bureau of Shipping and that the rating of such vessel

maintained at the standards required by that bureau

Incidental to the work of the board in promoting the 

of the American Bureau of Shipping in foreign countries 

have risen both in Italy and in Trance involving m

ognition by these countries and the United States of the 

laws of the countries respectively In one instance th

Government requested changes in an American vesse

Italian ports to conform to the Italian inspection laws 

standing the arrangement of the vessel met the requireme

American laic This bureau intervened and with the 

tion of the Department of State secured a suspension o

quest of the Italian officials pending negotiations of an 

ment by which both countries reciprocally will pass a ves

meets the requirements of the inspection la s of the c

which it is documented The impossibility of a vessel 

complying with conflicting provisions of the laws of differ

tries is obvious and emphasizes the importance of maritim

having reciprocal agreements under which their officials 

cept as sufficient conditions which are in compliance with 

of the nation to which the vessel belongs

Work Under Section 23 Merchant Marine Act 1920

Work of the board under the provisions of section 23 of 

chant marine act 1920 is assigned to the Bureau of Cons

In the last annual report of the board reference was 

an item under section 23 merchant marine act 1920 na

application of the American Hawaiian Steamship Co fo

proval of the type and kind of vessel proposed to be b

at a cost of about6000 The plans then pending 

the bidding on which the company had proceeded was not 
NINTII ANNUAL REPORT UNITED STATES SHIPPING BOARD 

by the board as competitive bidding under the requirements o

rules and regulations of the board and of the Treasury D

ment This bureau further interested itself in the matter wit

result that Plans were prepared on which all shipyards o

United States were invited to bid and bids having been du

ceived action by the Americanawaiian Steamship Co in a

ing a contract dated December 9 1921 to Wm Cramp 

Ship Engine Building Co for the construction of a com

freight and passenger express vessel of the most modern typ

kind was approved by the Shipping Board by resolution 

December 16 1924

The vessel mentioned to which the name of Malolo has 

given will be the finest passenger vessel yet built in an Ame

shipyard its cost being at present estimated in excess of6001

It is the most marked instance of the wisdom of Congress i

acting section 23 of the merchant marine act 1920 as an a

upbuildimg our merchant marine for without the assistance of 

fits accruing under section 23 the vessel would not have been 

Notwithstanding section 23 by its own terms expressly pro

that it shall be effective for 10 taxable years beginning wit

first taxable year ending after the enactment of the me

marine act 1920 under a ruling of the Treasury Departme

benefits have been impaired by the repeal of the revenue a

1918 Under the provisions of section 213 a citizen will be al

as a deduction for the purpose of ascertaining his net income 

ject to the war profits and excess profits tax imposed by Ti

of the revenue act of 1918 an amount equivalent to the net 

ings of any American vessel operated by him in foreign trade 

ing the taxable year involved in other words a citizen is e

from the tax named as to any net earnings received from th

erations in foreign trade of an American vessel owned by 

provided he invests an amount equal to the tax thus waived 

building in shipyards in the United States of new vessels 

type and kind approved by the Shipping Board which vessels 

cost not less than three times the amount of the tax money 

invested it being provided that at least twothirds of the c

any such vessel shall be paid for out of the ordinary funds or 

tal of the person having such vessel constructed

Section 23 also provides that a citizen who may sell a vessel 

mented under the laws of the United States and built prior to 

uary 1 1914 shall be exempt from all income taxes that w

payable for any of the proceeds of such sale under Title 1 T

and Title 3 of the revenue act 1918 if the entire proceeds o

are invested in the building of new ships in American ship

such ships to be of a type and kind approved by the board
82 NINTH ANNUAL REPORT UNITED STATES SHIPPING 

The Treasury Department has ruled that notwiths

express provision that the policy laid down by Congres

continued for 10 years or until 1930 it can no longer 

not even as to ordinary income taxes and ordinary in

are included by express mention in the second part of t

because the taxes enumerated are described as taxes imp

revenue act of 1918 and as the revenue act of 19

succeeded by a revenue act bearing another date simila

posed by the new act can not be regarded as applicable b

are not taxes imposed by the revenue act of 1918 W

lenging the accuracy of the ruling of the Treasury 

notwithstanding its highly technical aspects the origin

Congress in providing that section 23 should be conti

years should again be made effective and to that end 

legislation if necessary should be enacted

During the fiscal year a number of routine items a

section 23 of the merchant marine act 1920 received a

regular course including action by the board extending 

31 1925 the time when claimants under the provisi

section might proceed with building programs

Completion of the work of the board on cases in wh

under section 23 are claimed has not been practica

action by the board in the premises can not be final unt

ury Department has completed its audits of the various 

involved and certifies to the Shipping Board the amom

money in fact involved to the end that the board in 

certify that the amount has been duly invested as req

act It has been the wish of the board to complete its 

these cases and to that end the Treasury Departme

requested to advance the audit of the tax returns invo

the Shipping Board in turn might render its final re

premises

BUREAU OF LAN

The work of the Bureau of Law has been largely 

during the year in the codification of the navigation 

United States which has been in charge of two attor

staff of the bureau and as it is anticipated that the 

will be presented at the first session of the Sixtynin

special attention will be given to this work in this report

The duty of proposing amendments to the navigation 

United States is obviously incident to the general w

United States Shipping Board and is also expressly im

by section 12 of the shipping act 1916 The war pe

period of readjustment following the war however ca
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

years to pass before the general work of codification of th

was undertaken although during that period the board int

itself in specific bills pending in Congress from time to time r

to different aspects of such laws The board has been 

assisted in the work by committees in various sections co

of experts in shipping representing labor shipowners and 

ating agents respectively One of these committees fre

referred to as the Franklin committee as P A S Frankli

was chairman prepared a very full report a copy of which 

furnished on request A later report Afarch 20 1925 fro

present committee of the American Steamship Owners 

ation on the revision of the navigation laws successor 

Franklin committee contains valuable suggestions as to th

concerning seamen and the inspection of vessels among other 

discussed The board is indebted also to a committee of 

experts especially interested in conditions in the Great Lak

an excellent report

Several smaller committees were organized from time t

to concentrate on specific subjects to one of these was a

bulkheads to another boilers to another ship mor

etc Valuable suggestions were received from individual m

of these committees and in some instances the committees the

submitted reports of values

The report of the Franklin committee recommended a num

specific changes in existing law and also recommended th

entire body of our maritime laws be coded so as to make t

visions more accessible and understandable The board co

with this recommendation and the work of codification was 

taken and prosecuted without interruption until 1923 in whi

it was suspended for a period and the way for its systematic p

tion was not made clear again until Afay 1924 at which 

was resumed and for many months the entire time of two c

has been given to the work

The work has two main aspects 1 consolidating existin

revising their form into a comprehensive maritime code an

making them more orderly and accesisble 2 changes in the 

law by eliminating obsolete matters adding items required b

ern conditions physical and economical and amending the a

trative machinery to make it more efficient just and econom

Preliminary chapters have been drafted on specific subje

are prepared in the following form There are three para

umns the first of which contains the present law in its prese

but brought together from various sources in this column wi

tions showing the source from which they have been collecte

second column also presents the law as it now exists but in 
84 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

or coded form without any changes being made in this c

existing law The third column shows the law in coded f

lar to the arrangement of the second column but it include

changes in the law which have been proposed Notes are a

in the third column emphasizing the changes in present 

introduced and the source of the suggestion on which the 

based when the suggestion has come from an outside sou

The fact that the work of codification is in progress 

special staff does not militate against the introduction of 

bills pending the work of codification having in view i

changes in particular laws before it can be hoped that th

its entirety can receive the approval of Congress Specia

therefore havebeen considered by other bureaus and depar

the board independently of the work of codification To 

that the code might have intrinsic merit and in order that t

ness of the preliminary work done may be apparent an 

and comprehensive examination of the Federal statutes 

made and is still in progress for the purpose of gathering 

all statutes or new provisions of statutes relating to th

Under the system prevailing in Federal legislation this tas

plex and difficult for the reason that any enactment of 

relating to any subject whatever is valid as law so far as it

depends on the method and form of the enactment no mat

what title or in what bill it may appear and though w

related in subject matter to the title of the bill in which it is 

The need of revision even when important changes are 

is apparent from the report of the Franklin committee p 

respect to those sections of the Revised Statutes enacted a

long before motor vessels had appeared in commerce The 

frequently used in existing law is any vessel propelled 

or in part by steam Although vessels with Diesel eng

within the purpose of many such laws the phraseology 

apply to them This has been corrected at numerous poin

preliminary chapters

The report annexes a copy of the report of the Ameri

gates to the International Maritime Conference 1910 con

convention on collisions at sea and the subject including 

ent status of the convention in the United States was exa

the board One of the main proposals of the Internatio

time Conference of 1910 was that the present rule whic

equally the total damages when both ships have in some 

been guilty of neglect which has contributed to the co

matter how great the difference in degree may be should b

so that the division should be proportional to their respe

ligence
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

The convention was duly filed by the American delega

the Department of State and though 12 years have passe

not been submitted to the Senate for action We have inve

two aspects of this matter viz a The present status of 

vention in the Department of State and the reasons why it h

been submitted to the Senate and b a canvass of the a

judges of the United States to obtain from them their vie

the wisdom of the proposed change

We have learned from the Department of State that the 

tion was not in fact submitted to the Senate and the reaso

not was because many protests were received from commerci

throughout the United States against its adoption by this 

ment The department has permitted us to examine some 

letters of protest dated 1911 It is obvious that the Pro

were not objecting to the main provision set forth above 

subsidiary provision of the proposed treaty under which th

limited in their rights of action against a particular vesse

proportional part of the loss for which such vessel was liab

main rule was directed chiefly to the relative liability of 

vessels as between themselves The commercial bodies were 

influenced to make their protest we surmise by reasons w

not affect the main principle

We have communicated with many of the judges of the 

States district courts which are our admiralty courts and w

tical unanimity they approve of the proposed change fro

division of damages When the relative degrees of neglige

unequal to a proportional division of the loss

We recommend the submission of the convention to the Se

its consideration notwithstanding the great delay that has o

if this course is permissible under diplomatic precedents

The following subjects have thus far been treated for us

codification of the law

1 The inspection of vessels including the marine in

service and the license of officers of the merchant marine

2 The registry or documentation of vessels

3 The measurement of vessels

4 Seamen including shipping of seamen discharging of 

wages of seamen protection and relief of seamen property 

ceased seamen offenses by and against seamen and also th

of alien seamen under the immigration laws

i Marine and coastal fisheries including the shipping a

charge of fishermen

6 Entry of vessels

7 Clearance of vessels
80 NIi TH ANNUAL REPORT UNITED STATES SHIPPING BOA

S Classes of cargo

9 Aids to navigation

10 Obstruction to navigation

11 Transportation in commerce with contiguous countr

12 Coastwise commerce and navigation

13 Pilot laws

14 Consular service

15 Passengers and immigration

16 Marine postal service

17 Tonnage dues and discriminating duties

18 Insular possessions

19 Crimes

The Bureau of Law has administered the duties of the b

posed by section 30 of the merchant marine act paragra

subsection O in respect to sales of vessels subject to a p

mortgage Among the facilities having in view the develop

an adequate merchant marine was the enactment of the sh

gage act embodied as section 30 of the merchant marine a

under which financing of shipping was somewhat improve

suring to persons lending money on vessels more adequate 

for their money and with remedies in case of default more 

administered than ordinary ship mortgages had the

afforded

The development of the financial aspect of investments in 

as loans is one of the various angles recognized by the shipp

1916 and the merchant marine act 1920 bearing on the 

ment and maintenance of a merchant marine apart from t

physical existence of vessels and their operation in the c

of the United States The superiority of sonic nations in the 

ocean transportation is due not only to such factors as grea

nage of appropriate vessels but the superiority of collatera

such as international banking facilities maritime insurance f

classification societies and simpler maritime laws and regul

It is provided in substance by subsection O of section 3

merchant marine act 1920 that a vessel documented under 

of the United States which is subject to a preferred morca

not be transferred to new owners by voluntary sale unless 

render of its documents incident to the sale has the app

the United States Shipping Board the board however 

give such approval unless the person holding a preferred m

if any consents to the surrender of the documents The pr

afforded by this requirement is obvious and recognizes the 

financial and moral standing of the owner of a vessel has in 

curity afforded by a mortgage on the vessel The secur
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

furnished is strengthened by the provisions of section 9 of 

piro act 1916 which prohibits the sale of a vessel to an ali

transfer to foreign registry without the approval of the 

States Shipping Board with the result that when a citizen 

preferred mortgage on a vessel as security for a debt or 

mows he is protected by these provisions of law and by the 

ation of the United States Shipping Board

The following is a statement of instances in which the a

of the board has been given during the last year under the pr

of the ship mortgage act

Appiorals solder paragraph a suDSectioa O Section 40 Iferehan

Act 1020 transfers of TesacI3 subject to preferred mortgag

Same ofvsseL Oeiall Grded 

No forme of vessel Transferee No 

SuFOntm 229010 Electrie Boat Co Sew Submari ne Boot Corpo 6 

Jersey io

Suedco

ucu aacO 220011 iAodo 7

4u

ratdo n 6 I 

2211240

221125 do 

do 

SmmIseeo 2M2 1do tla 9 

Suspearco 2210110 do do 1 9 

3uearsece 219T01 do dO 10 

City of Grand Rapids 2100651 Graham Alorton TransI Goodrich Transpor 11 

City of Benton IIar 200910 dodo 11 

Cityhotof St Joseph 121627 do do it 

City of Saugatuck 126974 do Ido It 

City of Holland UG9n8 do do 31 

R D Macbeth E4525 Lakewood Steamship Co Forest City Steamship I 121 

Co

Wes F Raprich 117248 Clifton Transportation Co do 13 I 

DavidColombia S TrOoal 117208 Fairmont Steamship Co do 13 

214000 Parifle Mel Steamship Y Sail Steam l4 

Co ship Co

Ecuador 211318 I do do 14 I 5

enezue a 214325 do do 14 

Governor John Li ld 216x71 Porto Rico American Baltimore Insular Line

i

15 

6tenmship Co Belli IneJ Baltimore

mere

fnJor wheeler 217046 elm do 15 I 

Belisle 218980 dO do 15 I

Delflna 218811 do do 15 

An item arising during the past year aptly illustrates the 

tion between the functions of the Shipping Board in operat

sels owned by the Government and one aspect of the relation

board to privately owned and privately operated vessels T

in question is based on the fact that the board srelations to 

tinder contracts for the transportation of freight by vessels 

Government are identical with the relations of private s

companies to shippers tinder similar contracts whereas th

also has certain supervisory or regulatory functions over the 

ities of private shipping companies of a very limited natu

ever for the protection of shippers in their relations with su

panies

A large shipment of wool having been made from Australia 

steamship West Mahwah one of the Shipping Board vesse
88 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

through rate quoted for its transportation to Boston re

controversy on a claim for rebate on freight moneys 

claimant however failing to distinguish between a case o

breach of contract for transporting the commodity and 

citizens for redress through the regulatory powers of the b

a proceeding in the division of regulations through whic

the board administers some of its quasi judicial powers i

complaints that common carriers by water have violated 

of law Under the principles controlling the facts the cla

not entitled to redress by the division of regulations and 

so decided Whether the claimant was entitled to redre

ground that there had been a breach of contract as dis

from an express violation of some provision of law prese

ferent issue one which in the first instance becomes a rout

in the claims division of the operating company

It has come to the knowledge of the board that the fu

the board in respect to rate regulations and control of co

riers by water are misunderstood not only by citizens at 

by many officials of Government The impression preva

large measure of the board sfunctions parallel similar 

exercised by the Interstate Commerce Commission in its 

railroads To a limited extent the board has powers 

shipping act 1916 in its relation to certain classes of com

riers by water similar to some of the powers of the Inters

merce Commission in its relation to railroads To assist in 

understanding of the board sreal functions in this field t

of Law during the year prepared a memorandum anal

paraphrasing sections 15 16 17 18 and 19 of the shi

1916 which are the sections of law having special referen

regulatory powers of the board so as to clarify and coor

intent and scope of the act Because of the general interes

developed in the board sfunctions in these matters and be

will probably be of special interest to Dlembers of Cong

memorandum is set forth as follows

MEMORANDUM ON SECTIONS 15 16 17 18 AND 19 OF THE CHIPPING 

Sections 15 16 17 18 and 19 of the shipping act 1916 relate p

rates classifications and regulations in the movement of goods or 

Among the elements involved in these sections are the followin

1 Alatters pertaining to joint action by two or more carriers in 

of rates regulations etc render conference agreements or oth

understandings

2 Protecting shippers against unjust or unreasonable discrim

between shippers and similar protection as to ports

3 Information to shippers concerning the maximum rates 

charges for transportation
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOARD 

4 To protect shippers against unjust or unreasonable charges 

fication or practice

6 To guard against rate wars by strong companies against wea

panies having in view the elimination of the latter by prohibiting a co

Increasing its rates when they have been reduced for the purpose of 

ating competition unless a proposed increase rests upon changed con

other than the elimination of such competition

It will be observed that one class of these provisions relates to 

Imposed on the common carrier and another class to the powers vested 

board with respect to such common carriers We present below a s

of these sections not an exhaustive analysis

SEC 15 SHIPPING ACT 1914RELATIVE TO CONFERENCE AGREEMENTS

This section affects common carriers by water as deflued by section 1 

act and therefore includes those in foreign trade and those In Interstate 

It requires such carriers to file information concerning any agreements 

or oral it may have with other carriers when such agreements re

either a fixing or regulating transportation rates or fares b giv

receiving special rates acromodations or other special privileges or 

ages c controlling regulating preventing or destroying competitio

pooling or apportioning earnings losses or traffic a alloting por

restricting or otherwise regulating the number and charater of sailin

tween ports g limiting or regulating in any way the volume of ch

of freight or passenger traffic to be carried or h in any manner pr

for an exclusive preferential or cooperative working arrangement

A distinction must be drawn between the obligation of the comp

file all such agreements and the powers of the Shipping Board with 

thereto when filed A distinction must also be drawn between the 

of the board in enforcing the obligation to file and its powers with 

thereto when filed

The board has power to disapprove any such agreement under tes

down by the act the discretion of the board is In the application 

test The test to he applied is whether the board finds the agreem

be unjustly discriminatory or unfair as between either a carrier 1 e 

common carriers competing in the trade b shippers including expo

importers c as between American exporters and foreign competito

or between ports I e between various ports of the United States w

it does not apply to discrimination as against foreign ports or e to 

to the detriment of the commerce of the United States or f to be in 

tion of this act

Whether an agreement having either of the objections enumerated 

judicially declared void on that ground when the board by affi

action finds it to be legal is doubtful we favor the view that wh

Shipping Board approves it a court can not abrogate it as violatin

section for the Shipping Board has a broader discretion in the 

than has a court

A distinction is drawn between agreements of the type mentioned e

at the time of the organization of the board and agreements made a

organization The term organization as here used does not me

organization of a particular board it means the initial organization 

board after the enactment of the shipping act 1916

Agreements existing prior to the organization of the board as thus 

need only be Sled with the board and may be regarded as continuing in 
90 SI ANNUAL REPORT UNITED STATES SIIIPPING 

unless the board oil its own affirmative action examines the a

declares it to be illegal Those agreements made subsequent to 

tion of the board may not be put into effect until and shall b

when and as tell as approved by the board

It is expressly provided that every agreement lawful unde

shall be excepted from the provisions of the antitrust Gets

The penalty imposed by the act for the failure to file an a

required to be fled is 1000 per day to be recovered Hot by 

Board but by the United States

SECTION 16 SHIPPING ACT 1416TRIS SECTION MAKES UNLAWFUL 

OR PREJUDICIAL TREATMENT Ix RESPECT TO THE MATTERS MNTI

The first two paragraphs of section 16 of the shipping act 

considered with respect to a the things forbidden and b 

restrained The persons restrained include common carriers by 

operating in foreign commerce or in interstate commerce as 

expression other persons subject to this act has it will be 

special definition and relates to persons carrying on the busines

ing and those operating terminal facilities and Who are not in

term common carrier by water

The section immediately preceding relates to activities of co

in eonjnetion with other carriers Section 16 however expre

that it applies whether the person restrained is acting alone 

in conjunction with any other person If acting with another 

be observed that the other person does not have to be a com

Paragraph 1 of sections 16

among the things forbidden are those which give a preference 

in any respect whatsoever No enumeration is made o

preference or advantage aimed against This group assum

grade of fair treatment as due all shippers and then forbids 

hand any undue or unreasonable preference or advantage o

the normal treatment due and bon the other hand any undu

able prejudice or disadvantage belolo the normal treatment I

It would seem that the complaining party might be receiving fa

treatment in the premises and yet the complaint be good whe

or advantage that is undue or unreasonable preference or 

being given another Also a just ground of complaint would 

who is the victim of any undue or unreasonable Prejudice or d

any respect whatever although no one is being given a prefere

Inge The base line of cmnparison seems to be in both case

fair treatment due all to which we have referred above

Though no specification is given of the respect in which the 

advantage or the prejudice or disadvantage may be exten

sons or things who are the beneficiaries of or are the victims o

are enumerated they are any particular a person b lo

description or class of traffic

As affecting a particular persona the term relates chiefly 

consignees though preferential or prejudicial treatment of it forw

would seem to come within the test

As affecting a particular description of traffic every one 

that class might be equally favored or prejudiced and therefo
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

all such persons there would be no discrimination yet the practice 

unlawful as prejudicing other descriptions or classes of traffic

As affecting a particular locality the provision does not seem t

individuals as such but among other aspects has in view fair a

treatment of ports in their separate and competitive relations I

observed the preference or prejudice respectively must be un

unreasonable this vests a substantial discretion In the board it is 

ficient to show that a discrimination exists it must be an unreaso

crimination

Paragraph 2 Section 16

The second group relates to rates charged for transportation of 

having in view but not requiring equality of charge to all users No 

is made to assure uniformity of charge not even for similar service 

words nothing in the section affects the right tocharge openly se

ferent rates on the same voyage for the same commodity it is f

however to do this ecerrtly It may not be done by such indirect 

as a false billing b false classification a false weighing d fa

of weight or e by any other unjust or unfair device or means

What is the rate below which it may not deviate by the methods m

It is not the rate named in the tariffs required to be filed in certain c

the just and reasonable rate required by section 18 nor a rate f

the discrimination or prejudice forbidden by section 17 These a

legal tests must of course be met when and as required but the tes

tion 16 is different

The test under this section is the regular rate then established and 

by the carrier in other words it is the prevailing rate commonly qu

actually applied by the carrier for similar service If a rate of 50 ce

is charged a shipper for 100 tons a rate of 25 cents per C may under p

cumstances be charged another shipper on the same commodity for the 

tance on the same voyage if done openly it may not be done how

example by having the freight bill show a 50cent rate and the quanti

appear on the bill only onehalf of what it in fact is

It must be noticed this group relates only to the transportation of p

It does not include passenger traffic

Paragraph 3 section 16

The third group does not involve relations between common car

shippers It undertakes to restrain one common carrier from injurin

peting carrier by water by inducing persuading or otherwise infl

marine insurance company not to quote the competing carrier as 

rate of Insurance on vessel or cargo having due regard to the class 

or cargo as is granted the offending carrier

It will be noted the section does not affect full freedom of actio

insurance company that company is left free to discriminate at its 

in quoting insurance rates it Is directed against an offending ca

would seem that it must be a competing carrier and that no p

incurred if a common carrier by water or other person subject to t

causes the quotation of a prejudicial rate if the victim is not a c

carrier

It will of course be observed that the provision applies to insurance 

as well on the vessel a differential on cargo insurance would divert p

as well as a differential on freight rates other things being equal

6767725
92 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

SECTION 14 SHIPPING ACT 1918 VESSELS IN FOREIGN COMMER

The provisions of this section relate only to vessels operated 

trade and include not only American vessels engaged in that trad

foreign vessels when in American ports or when operating in trade w

can ports

Special emphasis should be given the second paragraph of sectio

ing every such carrier and every other person subject to this 

This clause seems an ordinary English sentence pre

meaning what it says viz other person subject to this act A

carriers by water in interstate commerce are subject to the ac

seem they are included in the clause mentioned but they are not 

they are not is that the clause has been given a specific definition b

of the act and relates to terminal facilities as distinguished from s

is an apt illustration of the danger attending artificial definitions 

common sentences so used are not given some distinguishing mar

marks for instance

It will be observed that no duty is imposed on common carrier

in foreign commerce to file tariffs setting forth their rates etc e

mum or otherwise Nor is there any express requirement that 

charged in foreign commerce shall be just or reasonable as is req

case of common carriers by water in interstate commerce

What then is the significance of section 17 It has two purpo

these is to guard against discrimination the other relates to m

vailing at terminals

As to discriminations section 17 emphasizes that no carrier in fo

merce shall demand charge or collect any rate fare or charge w

justly discriminatory between a shippers or b ports or c 

prejudicial to exporters of the United States as compared with th

competitors

Discrimination of the carrier with respect to rates or fares see

nothing to do with the amount charged but requires reasonable 

of application of prevailing rates not only as between shippers but 

ports Power is given the board to alter any prevailing rate or 

an amount which the board may think reasonable but only in so f

is discrimination In other words the board may require the ra

to be applied under similar circumstances to all shippers alike b

seem that it can not pass on the reasonableness of the rate pe

the question arises between say a single shipper and the ves

question of discrimination is involved

This conclusion is not affected by the term prejudicial used 

as an alternate to discriminatory As here used prejudic

solely to the clause unjustly Prejudicial to exporters of the Un

as compared with foreign competitors hence further on in the 

make the subsequent language comprehensive in each case the 

discrimination or prejudicial are used so as to have language 

to each of the earlier provisions of the section

The second paragraph of section 17 not only does not relate 

fares but it does not relate to xesseis except as they nay be aff

Involved in handling or storing of cargo or other terminal proc

erated Primarily this paragraph relates to terminal matter

theludes other persons subject to this act which clause has 

definition sea 1Sbipping act 1016 and relates to persons carry

business of forwarding or furnishing wharfage dock warehous
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

terminal facilities in connection with a common carrier by wate

requirements with respect to such terminal facilities are that the ca

other person subject to this act shall establish observe and enfo

and reasonable regulations and practices relating to or connected w

a receiving b handling c storing or d delivering of propert

It will be observed no express statement about discrimination is 

the requirement is that all such regulations and practices shall be ju

reasonable As to these terminal services it is not a comparison 

facilities furnished one shipper as compared with those furnished 

shipper the question is an intrinsic one relating to the quality of the 

rendered per se

It is provided that the board may iugnire into and determine Mieth

regulation or practice with respect to such terminal facilities is un

unreasonable and fit case it is found that they are the board may p

and enforce a just and reasonable regulation It seems that the pa

has no reference to rates charged for the water trusportation or to 

charges for such terminal facilities it has to do primarily with the 

and supervisory aspects of the matter not with the financial

SECTION I8 SIIIPFING ACT 1D111 VESSELS IS ISTERSTATE COMMERC

Section 18 relates only to common carriers by water in interstate co

The terms vessels engaged in interstate commerce and vessels 

in coastwise trade are not interchangeable A vessel may be engaged 

state commerce as defined by section 1 shipping act 1916 and yet 

engaged in coastwise trade for the term includes water transportatio

possessions of the United States not yet brought within the coastwis

For instance a vessel on a regular route port to port from California 

Philippine Islands is a common carrier by water in interstate comme

it is not engaged in coastwise trade at least not at present for the P

has not taken action on section 21 merchant marine act 1920

An important distinction to be observed In the provisions of sec

shipping act 1916 is that paragraph 1 relates to actual transactions w

pers and paragraph 2 relates to duties to be performed in filing tariffs 

apart from any immediate transaction with the shipper Paragraph 1 

to concrete items of business paragraph 2 relates to compliance with 

ment requirements though there be no transactions

The requirement of paragraph 1 is that the carrier establish obse

enforce a just and reasonable rates fares and charges b just a

sonable classifications and tariffs c just and reasonable regulatio

practices relating to such rates fares charges classifications and tari

d just and reasonable regulations and practices relating to the issua

form and the substance of tickets receipts and bills of lading and a

to the manner and method of presenting marking packing and de

the property for transportation f the carrying of personal and exc

gage g the facilities of transportation and finally h to all other 

relating to or connected with the receiving handling transporting 

or delivering of property We repeat these requirements relate to 

transactions and not to mere printed tariffs whether or not filed w

board

The second and third paragraphs of section 1S relate to complian

Government requirements wholly apart from transactions with shippe

requirement is that the common carrier by water In interstate comm
94 NINTH ANNUAL REPORT UNITED STATES SISIPPING 

with the board and apart from the copy filed with the board 

public inspection in a form and manner and within the period 

scribedby the board the maximum rates applicable to shipments 

tation between points on its own route or to points on other route

shipments The carrier is not permitted to charge higher than t

tariffs thus filed except with the approval of the board and a

public notice setting forth the increase proposed the board howe

mit such an increase without notice

Unless the fourth paragraph of section 1S gives the board so

the matter which is very doubtful it would seem that a om

has great liberty with respect to the rates fares and charg

by him as maximum rates fares and charges Whether the 

or may not control the maximum rate there is no question th

power to prescribe a minimum rate or any other exact rate

We do not think that the fourth paragraph of section 1S gi

the board to prescribe the maximum rate as published genera

however it gives the board power to control the maximum ra

particular shipper for a particular shipment The control in th

tends to the point of prohibiting the carrier by water in intercala

from demanding charging collecting or observing any tinjiist 

able a rate or fare b classification or tariff c regulation 

In cases where the board finds these requirements violated the bo

scribe and enforce a just and reasonable maximum rate fare or 

just and reasonable classification tariff regulation or practice

It may be claimed that as the term tariff is included in the 

of the things required by this paragraph to be just and rea

as the term maximum is used in this connection that these p

the control of the board to the maximum rates published by the 

do not think this follows That paragraph 4 relates to concrete tr

confirmed by the fact that the language used namely rates o

manded charged collected is identical with the words used I

namely demand charge or collect in referring to rates or f

by vessels in foreign commerce and with respect to which th

exercise certain control to protect against unjust discriminatio

respect to which rates or fares there is no requirement that ta

If it was the intention of Congress to have paragraph 4 apply to 

with the board it would have been easy to have said so Th

commences by referring to rates fares charges classifications ta

tions or practices not as set forth in filed documents but as 

charged or collected The paragraph is not dealing with abstra

it is dealing with actual transactions and with respect to these 

the board in the case of a particular shipper and a particular 

prescribe and enforce the maximum amount the carrier may c

particular case

SECTION 19 SHIPPING ACT 1918 ESTOPPEL ON INCREASE OF CERT

Section 19 of the shipping act has in view estopping a carrier 

Interstate commerce from increasing rates it has voluntarily m

standing they are below a fair and remunerative basis whe

have been quoted with the intent of driving out or otherwise inj

petitive carrier by water

The section seems to apply to transportation rates only and no

charges when the terminal is not a part of the carrier by wa

The language includes only a common carrier by water in in
tiINTII ANNUAL REPORT UNITED STATES SHIPPING BOAR

merce it does not include other persons subject to this act which 

as we have seen applies to persons conducting water terminals not Inc

the term common carrier by water A private company therefore o

water terminals but not operating as a common carrier by water 

state commerce in connection therewith does not come within sec

and it will be noted the section does not apply to a common carrier b

in foreign commerce not to one operating only between points in t

State

The rates Involved must be rates to or from competitive poi

rates should be quoted and with the Intent of driving out compet

quoted to or from points at which there was no competition it wo

that such rates notwithstanding the intent would not come within the 

However if carrier A is serving one port and carrier B is serving 

port and the two ports are in competition for an export movement f

interior would not the vessels though sailing from different ports be 

the same competitive point

The reduction must be to a level below a fair and remunerative 

A reduction in itself though substantial does not come within the 

unless it is to the level indicated The distinction Is logical If the co

line has a ratelevel which though lower than before is fair and re

tive the rate cutting line is not penalized by section 19 it is the rat

seeks to destroy the competition which is aimed at

If the reduced rate is fair and remunerative to the rate cutti

because of modern equipment but is not fair and remunerative to 

peting line because say it has not got modern equipment would t

cutting line be penalized by section 19 We think not to hold otherwis

put an embargo on progress

The reduction must have been made with the intent of driving out o

wise Injuring a competitive carrier by water The question of Inte

sometimes be a difficult one to solve it must be determined by all the 

stances of the case The fact that a person is presumed to inte

natural consequences of an act makes the problem somewhat less 

However if a strong line cuts rates in normal competition with anothe

line and a third line not so strong succumbs the rule of natura

quences in ascertaining Intent may not be applicable

The penalty imposed is that the carrier shall not increase such 

above the level to which they have been thus reduced with the inte

tioned without the consent of the board and the board may not give 

sent unless after hearing it finds that such proposed increase res

changed conditions other than the elimination of such competition

The question arises If the carrier thus reduces rates below a fa

remunerative basis and with the intent mentioned but the intent fai

purpose are the penalties of the section incurred notwithstanding the 

tion is not eliminated The general language through the body of the 

would require an answer In the affirmative but by implication there i

reason to believe that the penalties may not be incurred unless the com

lines aimed at are eliminated The implication arises from the fact t

test fixed for permitting an increase is a change of conditions other t

elimination of said competition it would seem therefore if the com

had not been eliminated the application of other tests was not contemp

As section 19 itself provides a penalty it would seem that section 32 

shipping act declaring a violation of the act a misdemeanor except 

different penalty is provided would not apply
96 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

At the request of the Department of State the Bureau o

signed a member of its staff to make an address to memb

class of the Department of State recently inaugurated as 

the general development of the Consular and Diplomatic S

the United States the subject of the address being an exp

the shipping act 1916 and merchant marine act 1920 wi

reference to the services consuls can render the American 

marine in the discharge of their official duties in the po

world The Shipping Board acknowledges its obligation 

bers of the Consular Service for their industry in observing 

in reporting many things that occur in various ports kno

which is helpful to the Shipping Board in the discharge of 

and in revealing problems remaining for solution in devel

maintaining an adequate merchant marine

For a part of the fiscal year the staff of the bureau as 

dered other bureaus services relating to items arising und

9 of the shipping act 1916 and sections 8 11 and 23 of the 

marine act 1920 similar to services mentioned in the ann

of the board of the fiscal year ending June 30 1924 Durin

fiscal year however the bureaus having charge of matte

under the sections of law mentioned further developed th

izations and personnel and as such work of the board for 

year is included in the reports of those bureaus respe

further reference is here made to services rendered in suc

by the Bureau of Law during the early part of the fisca

volved thus concentrating the entire statement of the ac

the board in such matters in the reports of the bureaus c

therewith

Much work has been done from time to time by the s

Bureau of LaR of a nature which can not be set forth in 

report of this kind because it is related to confidential ma

sented for consideration not only in the course of the routin

the bureau but also in respect to subject matters presente

sideration by various commissioners of the board

BUREAU OF FINANCE

The Shipping Board at a meeting on December 2 1921 

tion directed that all financial matters which are to be 

to the board for action be referred to the Bureau of Fi

investigation and report before being submitted to the bo

bureau investigates and reports to the board requests fo

tensions or rearrangements of terms on obligations due 

growing out of the sale of vessels and other property D

general depression in the shipping industry a member o

quests have been made and it has been the policy of this 
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

be as liberal in these matters as possible consistent with 

business principles and the protection of the best interests 

Government

The Bureau of Finance is also charged with the respo

of administering the construction loan fund in conjunction 

Bureau of Construction

From time to time it may appear desirable to the Em

Fleet Corporation which has charge of all bookkeeping rec

transfer on their books from the lire assets to the suspense 

certain accounts or other evidences of indebtedness which 

the smallness of the amount involved do not warrant the 

of continued effort to collect or where the financial conditio

debtor or the difficulty of proof is such that the recove

made does not appear to justify further expenditures in a

to effect collection

Such write offs or adjustments do not in any sense forg

indebtedness of the debtor The transfer from the live a

the suspense accounts is merely for record purposes and 

counts or other evidences of indebtedness may be used in li

as a credit to the United States of America andor the 

States Shipping Board Emergency Fleet Corporation as 

may be notwithstanding such transfer

The purpose of these writeoffs is to eliminate dead tim

to place the books of the Emergency Fleet Corporation 

condition that they will reveal the true value of its assets 

such cases are referred to the Shipping Board they are inve

and reported by this bureau

The Bureau of Finance cooperates with the treasurer s

ment and with the legal department in the collection of 

and in the liquidation of pastdue securities Satisfactory 

has been made in this direction during 1925 but there still 

a considerable volume of past due accounts and securities w

will take some time to liquidate

BUREAU OF RESEARCH

The Bureau of Research conducts special studies and invest

for other departments of the organization and current stu

commerce and general shipping information During the p

the work of the port facilities commission has been transfe

the Bureau of Operations

Among the important surveys completed by the bureau 

the fiscal year ended June 30 1925 were reports on the wat

foreign commerce between the United States and the various 

trade regions of the world in the fiscal years 1922 1923 an
98 NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

with classifications of cargo and segregations of types and 

carrier vessels Reports of movements in foreign com

principal commodities between ports of origin and desti

the fiscal years 1923 and 1924 were also completed

This bureau maintains the only existing records of the v

terms of cargo tonnage of commodities moved in foreign a

coastal trade the ports of origin and destination of cargoes 

types size and nationality of the carrier vessels Passeng

by classes is also recorded in a similar manner Afore 

reports were compiled from these records during the fiscal 

upward of 16000 copies of these reports were issued in fulfi

requirements of the board the Emergency Fleet Corpora

various governmental industrial shipping railroad co

educational and other organizations

The bureau also maintains current records of the emplo

American steam and motor vessels of 1000 gross tons and 

issues quarterly reports on the status of the seagoing Amer

chant marine

The records of the vessel section are now current and 

contained therein on the physical characteristics of the wos

chant marine are complete up to a more recent date than 

issues of Lloyds and other registers of shipping

LEGAL DEPARTMENT

The fiscal year ended June 30 1925 marked still fu

trenchment of the expenses of the department pertaining 

sonnel and administrative activities It also marked very 

liquidation of many of the cases growing out of the war pr

Every effort has been made to continue the efficient ha

the work of the department with the decreased personn

perfection of the organization of the department

The form of the organization of the department has no

from that maintained during the fiscal year ended 1924 

roll of the department including Fleet Corporation and 

Board attorneys and clerical force on June 30 1924 was 

and on June 30 1925 was 488 100 a reduction of 196

The legal department is divided into three divisions l

contracts opinions recoveries and special assignments 

miraltyand will be considered under these divisions

Litigation Division

The work of the litigation division involves practically 

of litigation that arise in the courts including actions a

tort and on contracts suits in equity for injunctions fo

of mortgages accountings reformation of contracts sp
NINTH ANNUAL REPORT UNITED STATES SKIPPING BOA

compensation

formance and

probate

receivership

court proceedings

and bankruptcy

and tax

matters

matters

ws

not include matters in admiralty as these matters are ha

the admiralty division

A number of new cases have been filed probably becaus

fact that claimants were desirous of preventing the statute 

tations from running against their claims particularly thos

socalled war program

The litigation division has maintained a corps of attor

offices at Washington and new York and district counsel at 

Portland San Francisco Philadelphia and Norfolk Ther

maintained an office in London which handles subject to th

vision of the general counsel not only such litigation as 

European ports but also renders opinions and passes upon c

growing out of the European business

The work of the Iitigation division has not been confine

above referred to cities as many cases have been brought 

Fleet Corporation and the Government and against the Fle

poration or agents and operators of the Fleet Corporation 

jurisdictions and the attorneys attached to the home off

prepared such cases for trial in collaboration with the pa

United States attorney within whose district the cases ar

ing and have appeared in court and either assisted the Unite

attorney or actually conducted the trials in person as 

assistants to the Attorney General The assistance of the a

in the litigation division is also rendered to the Departm

Justice in the preparation of the defense of the cases in th

of Claims of the United States involving Shipping Board 

There are still pending certain cases growing out of the w

prograin of the Government involving large sums of mon

upon which during the fiscal year a great amount of work h

done in the preparation of pleadings the assembling of e

and in arguments on preliminary motions Among these 

the Bethlehem Shipbuilding Corporation litigation in w

action at late was instituted by the Bethlehem Shipbuildin

poration Ltd against the Fleet Corporation in the New 

State Court afterwards removed to the United States Distric

for the Southern District of New York to recover974899

The complaint in this action consists of 62 causes of actio

up of 507 paragraphs covering 235 printed pages together w

printed pages of exhibits Contemporaneously with this a 

equity was instituted by the United States of America aga

Bethlehem Steel Corporation and its affiliated companies in

the Bethlehem Shipbuilding Corporation Ltd the plai

the action begun in New York in the United States Distric

67077256
100 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

for the Eastern District of Pennsylvania asking for the 

the Government of unconscionable profits and for an accou

a decree for the return of advances made to Bethlehem Sh

Corporation Ltd approximating 11000 This latte

instituted by and with the advice of the Attorney Gene

United States and the attorneys of that department ha

orated with the attorneys of the litigation division assign

conduct of the case in the preparation of the pleadings 

assembling of the evidence Inasmuch as these two case

the entire contractual relationship between the Bethlehem S

ing Corporation Ltd and its affiliated companies with 

ernment from August 3 1917 down to the present time th

preparing the pleadings and assembling the facts therefor 

and will be very arduous

Another case that of Skinner Eddy Corporation o

Nash involves a number of contracts for the construction 

A case had been started by the contractor against the Fleet 

tion to recover the sum of9129 401 14 After an exam

the situation it was determined that the contractor was in

the United States in a sun in excess of the amount claime

action was begun in the name of the United States in th

7

States District Court at Seattle against the contractor t

530 42 08 This case has required a great deal of time a

in its preparation

The division also was occupied during the year in the pr

and handling of the Posey Jones litigation in an en

bring the same to a conclusion This litigation concerned 

struction of ships for the Government at the three plants of 

builder and involved claims of the shipbuilder amountin

proximately 14000 and the denial of those claims 

Government together with the claims of the Governmen

the shipbuilder amounting to approximately 14000 

were instituted one in the Court of Claims of the Unite

which has been dismissed two in the United States Distr

of New Jersey and two in the United States District 

Delaware The last two have been prepared and hearin

started before the end of the fiscal year which it is ho

result in a speedy termination of the litigation

The litigation division has been successful in securing 

in the litigation involving the Virginia Shipbuilding Corpo

Virginia In this litigation the Virginia Shipbuilding Co

and other interests of Charles W Morse endeavored to asse

of approximately5000against the Government and af

ings and arguments the court found in favor of the Gover

the sum of approximately11571 858 05
SINTII ANNUAL REPORT UNITED STATES SKIPPING BOA

Success was also obtained in the various suits which were 

by the Atlantic Corporation against the Fleet Corporation 

Fleet Corporation and the United States against the Atlan

poration in New Hampshire and Massachusetts so that in

the Fleet Corporation or the Government becoming liable 

Atlantic Corporation in the amount of4100 0 as clai

government procured title to the Atlantic Heights housing 

and in addition thereto secured return of approximately 46

Action was instituted and successfully prosecuted aga

Puget Sound machinery depot of Seattle Wash wherein t

ernment claimed that the contractor had converted to its ow

large quantity of steel and other boiler materials belongin

Government which action was tried before a jury and a 

rendered in the sum of 333 601 35 As a result of the rec

this judgment a settlement of all the claims of the contracto

cancellation of its contracts was made possible which se

was consummated in a manner advantageous to the Gover

The litigation in New York relating to the Downey Ship

6

Corporation which litigation involved a claim of approx

000 against the Government was contested through 

and was finally disposed of by the exchange of mutual 

Although this settlement did not result in the payment of an

to the Government it has undoubtedly saved the Governmen

large sum of money which must have been spent had the li

continued with no prospect of return

Two suits are pending in the United States District Court 

District of Connecticut one by Harwood as trustee in ban

of the Groton Iron Works against the Fleet Corporation 

other a foreclosure suit by the United States against Grot

Works and others to foreclose a mortgage on its shipbuildin

and other property The two cases have been referred to a 

master and hearings are proceeding The amount of the 

involved is approximately 10000

Another case which resulted favorably to the Government 

injunction proceeding which was begun in the Supreme C

the District of Columbia by the Pacific fail Steamship Co 

the Shipping Board to prevent the consummation of the 

the CaliforniaOrient Line running from San Francisco to 

and the Orient with five President type ships to the Dollar 

ship Line the bids for which had been accepted This case i

the very important principle of the powers of a govern

agency to exercise discretion in carrying out the mandates o

gress and an interpretation of the powers conferred in thos

dates The application for an injunction was denied th
102 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

porary restraining orders that had been issued were disch

the bill of complaint filed in the cause dismissed

Another case in which the Government was successfu

of the trustee in bankruptcy of the American Shipbu

against the United States in the Court of Claims Alth

case was primarily handled by the Department of Justic

gation division took an active part in the litigation not o

presentation of the evidence but in the preparation of 

The Court of Claims found against the shipbuilding co

its claim for approximately1000 and in favor of t

States in its cross claim for approximately 700 0 T

presented on behalf of the trustee of the shipbuilding co

volved the interpretation of wartime ship construction 

and the result will undoubtedly deter other shipbuilders 

senting the same points which should eventually materia

the amount of litigation governing similar situations

Another case which has been handled by this division a

before the Supreme Court of the District of Columbia 

brought by the Western Union Telegraph Co to determine 

of the Fleet Corporation to avail itself of Government 

telegraph messages Although the particular amount in

the suit is not large the principle to be determined if fin

mined against the Fleet Corporation will undoubtedly res

loss to the Government of very large sums of money

Attached hereto are tabulations showing the number 

which have been handled by the division on behalf of the 

poration or the United States either as plaintiff or as def

so interested as to require the assumption of the defense o

gation by the legal department or in which the Govern

been interested because of bankruptcies or receiverships 

ulation is exclusive of cases which come within the functio

admiralty division The tabulations show a total of 621 

volving 487 930 574 96were handled during the year Of 

brought against the Government 57 involving 2166213 

settled or otherwise disposed of for a sum of 120 293 94 

where the Government was the plaintiff 12 cases involvin

1

100 55 were settled or otherwise disposed of by the col

036 819 38 Of the bankruptcy and receivership cases 

of 280 724 36 was collected as dividends from the estate

cases were disposed of on the books of the Fleet Corpora

The tabulation of figures of course does not indicate t

or amount of work necessarily performed in the care and c

the litigation involved
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

Contracts Opinions Recoveries and Special Assignments Division

The work of this division comprises the miscellaneous leg

ness of both the Fleet Corporation and the Shipping Board n

ticularly handled by the litigation division or the admiral

sion The work covers a multitude of subjects and is exce

diversified This division is called upon to render oral and 

opinions for all of the different departments of the Fleet C

tion and the Shipping Board to prepare revise and appro

tracts proposals advertisements of purchases and sales bi

tracts of purchases and sales of ships and other personal p

personal indemnity and performance bonds bills of sale o

and other personal property leases bonds mortgages assig

of bonds and mortgages and deeds covering real property 

and settlement agreements satisfactions of mortgages cover

estate and ships chattel mortgages and trust deeds prepara

resolutions for the board of trustees of the Fleet Corporati

for the Shipping Board to investigate and approve attorn

counts prepare necessary recommendations to procure the a

of the Attorney General respecting the same settlements for p

injuries investigate and approve the settlement of managing 

accounts review proposed legislation consider questions o

men s compensation and cooperate with the Federal Em

Compensation Commission

This division also acted as attorney for the collection divis

assisted in the examination of the accounts receivable and 

bility and financial responsibility of the debtors

One outstanding matter handled by this division during t

was the prosecution to a successful issue of the claim of the S

Board and Fleet Corporation against Germany for losses i

upon Government property during the war particularly with 

ence to vessels sunk or damaged by submarines or mines 

losses included requisitioned vessels of American registry 

constructed or purchased seized vessels and chartered vesse

claim was submitted to the Alixed Claims Commission of the 

States and Germany and an award was entered by that com

on May 27 1925 in favor of the Government for 16500 0 

interest thereon at the rate of 5 per cent per annum from No

11 1915 to the date of payment

It has been necessary to attempt to secure the remission of 

taxes imposed by foreign Governments on the earnings of Sh

Board vessels touching their ports which has required repr

tions to be made through the State Department and in ma

stances these representations resulted successfully
104 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

This division has also handled investigations of charg

the vessels of the Government or operators or captains 

reason of the fact that members of the crews and passe

cealed in the vessels contraband such as liquor narcotics 

was discovered by the customs officials and the vessels o

charge are held liable because the contraband does not app

manifests of the vessels Alien stowaways and alien memb

crews occasionally elude the vigilance of the officers of t

and get ashore illegally with the result that fines are asse

against the captain or vessel by the Department of Labo

effort has been made to cooperate with the Treasury Depar

the Department of Labor in these matters

6

On June 30 1924 there were pending 48 claims in th

184 90 55against the Shipping Board or Fleet Co

which claims in large part grew out of the war program 

the fiscal year there were filed additional claims to the n

18 involving 11402 325 51

During the year 30 claims were finally acted upon rep

the sum of 996 08 13leaving pending on June 30 1925 

totaling 165913 33

As a result of the above mentioned Atlantic Corporation 

title was secured by the Government to the Atlantic Height

project and the legal department assisted in the prepara

advertisement necessary to hold an auction sale of the proj

sale was started on the last day of the fiscal year The c

of this sale will end practically the liquidation of the hou

gram of the Fleet Corporation with the exception of a few 

parcels of property purchasers of which have failed to 

their contracts

The following figures will give an idea of the volume 

handled by this division

1 Preparation revision and approval of contracts 

bids bonds bills of sale leases approximately 412

2 Written opinions prepared at the request of other de

of the Shipping Board and Fleet Corporation approxim

3 Miscellaneous instruments and papers covering the o

jects heretofore mentioned approximately 558

Admiralty Division

The admiralty division has three offices New York Lon

Washington in each of which there is a staff of admiralty 

The division handles all admiralty matters for the Shippi

and the Fleet Corporation whether in or out of litigation

The members of the New York admiralty staff handle 

miralty litigation in the southern eastern northern and we
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

tricts of New York district of Connecticut and the district 

jersey In addition they advise the operating officials in Ne

the United States lines and managing operators on cur

miralty matters as they arise

The admiralty attorneys attached to the London office ha

eral supervision over the prosecution of all admiralty litiga

Europe They advise as to the employment of proper couns

various countries prepare cases for trial and see that witne

available at the proper time and that the cases are proper

Settlements and compromises are subject to the approva

home office and the Fleet Corporation

Members of the Washington staff prepare cases for tria

briefs try cases argue cases on appeal all in cooperatio

the Department of Justice and the United States attorneys 

dition they draw bills of sale of ships attend to legal ma

connection with the consummation of the sale of vessels and 

ing of preferred mortgages A good deal of care is requ

recording mortgages to make sure thai all the requirements 

ship mortgage act and the home port law have been satisfi

Questions are continually being presented to the division 

marinz insurance department contract department operat

partment and traffic department which require an im

answer Other questions are presented by the same depa

in a formal way which require careful consideration althou

mediate action is not imperative

A member of the staff serves on the traffic department s

lading committ a and advises it on legal questions The ad

division draws bills of lading for the various trades All the

of lading have some clauses in common but each trade has 

more clauses which are peculiar to it These are necessary 

special conditions in the particular trade

The admiralty division disposed of 615 cases involving 

13500 0 and received 337 new cases involving about370

during the fiscal year The cases disposed of consisted of 

lision 47 salvage 51 lien and 55 demurrage cases The re

of a miscellaneous nature

At the end of the fiscal year there were pending in the ad

division 434 cases not in litigation involving about9500 0 

1080 cases in litigation involving about 45000 Of the 

955 involving 39000 were in litigation in 34 different 

courts of the United States and 125 involving about60

were in litigation in the courts of 22 different foreign countr

each of five countries England France Italy German

Sweden there were 10 or more cases in litigation
106 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

The Supreme Court of the United States during the fi

decided two cases involving the construction of the suits in a

act In one the Biran it held that a vessel in the laidup 

still a merchant vessel within the meaning of that act and in 

the Quinnipiac that jurisdiction of a libel on in rem p

is not confined to the district in which the ship is foun

time of the filing of the libel that such libels may be filed 

the District Court of the United States for the district where 

is found or where the libelant resides or has his principa

business

In the Thekla Luekenbach case which did not come u

suits in admiralty act the Supreme Court of the Unite

held that where tho United States goes into court as a libe

collision case a decree may be entered against the United 

cross libel The court held that the filing by the United 

libel submitted the collision to the jurisdiction of the cou

court could do complete justice with regard to the subject m

The United States District Courts eastern district of 

vania in the Hen mj County and district of Massachusetts 

Capers held that the Shipping Board was entitled to c

murrage for delay in loading vessels when such delay w

by regulations of another department of the Governme

means that when the Government makes a contract in its 

capacity and in the exercise of governmental functions hi

other party to the contract from performing that cont

action commonly called governmental interference is no 

the other party

SECRETARY

The functions of the secretary of the board may be en

briefly as follows

1 Recording and custody of all minutes of meetin

Shipping Board

2 Preparation and presentation to the board by form

or otherwise of all cases requiring the board sattention

13 Custody of the immediate files and records of the b

4 Issuance of orders under section 9 of the shipping 

as amended and conducting investigations relative to vio

5 Preparation for the board or committee thereof 

arising under section 30 subsection 0 a of the mercha

act 1920 and the issuance of orders thereunder

6 Collaborates with the budget officer in the prepa

the consideration of the board and transmittal to Co

estimates for appropriations required by the board
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

7 Administrative examination and audit of vouchers c

salaries and expenses of the Shipping Board by direction 

chairman

8 Jurisdiction of the service divisions of the board 

mails duplicating library files chief clerk s division p

division etc and general office management

9 Control of communications telegrams cables etc

10 Under direction of the chairman exercises supervis

personnel of the Shipping Board

11 Assisting in preparation of annual report and sp

ports to Congress

12 Assisting special committees of the board in prepari

or holding hearings required under legislation affecting the 

13 Compilation and distribution of weekly report

Sale of Vessels to Aliens and or Transfer to Foreign Registry

Section 9 of the shipping act 1910 as amended makes it u

to sell transfer or mortgage or except under regulations pr

by the board to charter any vessel purchased from the b

documented under the laws of the United States to any per

a citizen of the United States or to put the same under a 

registry or flag without first obtaining the board s approv

section further provides appropriate penalties for the viola

its provisions

In the exercises of the powers conferred by this section th

requires a prescribed application form to be executed by th

siring to sell to an alien or transfer a vessel to a foreign 

or flag The applicant seller and purchaser are required 

cuting the application form to give all the details of the 

construction the reason for requesting transfer of owner

registry and why it is not desirable to retain the vessel un

American flag A statement must be made as to the trade i

the vessel is at present engaged and the trade in which the p

purchaser or transferee will employ the vessel thus enab

board to determine upon the merits of each case whether 

andor transfer should be authorized or the vessel retained 

the United States flag Each application must be suppo

a sworn affidavit that the purpose of the sale andor transfe

to avoid the laws of the United States The applicants mu

whether there are any liens encumbrances or other charges 

the vessel If there are liens encumbrances or other char

approval of the mortgagee or lienor must be obtained and 

davit to that effect filed with the board It is generally p

that the sale andor transfer be affected within a period 
108 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

months and that the vessel shall not engage in trade in cont

of the laws of the United States

In case of the violation of section 9 of the shipping 

as amended or the violation of any of the provisions or c

which the board places in the orders granting its approv

sale of aliens andor the transfer to foreign registry the 

has conducted investigations and when full information 

to the alleged violation has been obtained the matter was 

to the Department of Justice for prosecution of the party 

responsible for the violation On June 1 1925 the exa

of applications for the approval of the board to the sa

transfer of vessels to foreign registry and the investig

alleged violations of section 9 were withdrawn by the com

of the board charged with the administration of matter

under section 0 of the shipping act of 1916 as amended

During the past year July 1 1924 to June 30 1925 

the board authorized the sale andor transfer of 109 v

158 931 43 gross tons of which 46 were steam screw 1

vessels 23 motor vessels 3 uncompleted hulls no tonnag

and 26 vessels with no motive power The countries to wh

vessels were transferred are distributed as follows

Number

Registry olves 9els Orosrangeton Registry Numbe

otes eels v 

Brazilian 1 5397 00 Italian 1

British 24 28011 31 JaPantse 

Canadian 15 124568 Mexican 

Colombian 6 1678 00 Nicaraguan 

Chinese 2 387 00 Norwegivn 

Cuban 10 7922 49 I Pennma

Danish 4 14898 55 Persian 

French 2 9821 67 venezueloon ICI

1

Haitian

IIonduran 21 796 423500 Total 1

The secretary has been called upon from time to time by t

States Coast Guard Treasury Department Department 

merce and the Department of Justice for information c

vessels which have been seized for violation of the laws of t

States and against which there may be pending charges 

the Shipping Board oftentimes has an interest

Ship Mortgage Act Surrender of Documents

Section 30 subsection 0 a of the merchant marine 

provides that the documents of a vessel of the United S

ered by a preferred mortgage may not be surrendered e

the case of forfeiture of the vessel or its sale by the order of 

of the United States or any foreign country without the 
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

of the Shiping Board and that the board shall refuse such a

unless the mortgagee consents to such surrender

In carrying out the provisions of this section of the m

marine act the board requires the owner of the vessel t

formal application under signature and oath stating the n

the vessel involved the amount of the preferred mortgage 

encumbrances existing against the vessel and a statement of 

ditions under which the sale is to be made The board also 

the preferred mortgagee to file consent to the surrender 

documents of the vessel involved The proposed purchaser o

feree of the vessel is required to furnish a statement as to cit

and to consent that the vessel involved will be concurrently 

mented under the American flag to the end that said vessel 

as it is so encumbered shall remain a vessel of the United S

In carrying out the provisions of this section of the m

marine act the board during the past year has authorized 

render of the outstanding marine documents on 22 vesse

mented under the laws of the United States

PART II

UNITED STATES SHIPPING BOARD

EMERGENCY FLEET CORPORATION

EMERGENCY FLEET CORPORATION

During the fiscal year 1925 the activities of the presidens

Were conducted along much the same lines as in the previou

year being directed aside from the general supervision and 

nation of the activities of the various departments of the corpo

toward the improvement of the Shipping Board sservices a

reduction of operating and administrative expenses

It has long been apparent that the reduction of operating 

is of the greatest possible importance both as a necessary s

ward the eventual transfer of the services to private operati

also as a direct means of reducing the demand on the United 

Treasury With a view therefore of accomplishing these pu

and having in mind the necessity for keeping the operating 

during the year within the amount appropriated the Fleet C

tion has concentrated its efforts on every tangible method t

peared available to reduce the operating losses

As the greater part of the expenditures by the Fleet Corp

for salaries and wages and for other items of administrative e

is a direct addition to the operating expenses incurred by the 

themselves we are steadily working for reductions along thes

A constant effort is being made toward the elimination of d

direction of operators as well as detailed checking of the ind

activities incident to the services with a view not only toward 

oping the independence of the managing agents but reduc

direct expenditure of Government funds While it is of 

recognized that adequate general supervision by the Govern

essential eventual success must lie in the fostering of the 

initiative of the operators by the placing of additional resp

ties upon them

As a definite step in the reduction of administrative expe

the Fleet Corporation a material reduction in personnel h

made The number of employees paid by the Fleet Corporat

charged to general administration expense of the active fleet 

liquidation on June 30 1924 amounted to 3033 and by the 

the fiscal year 1925 this number had been reduced to 245 

annual pay roll of6558 880had been reduced to 4928 015 

wbile still conducting about the same amount of business the

been removed from our payrolls 788 employees with a corresp

reduction in salaries of 4630 865 a year

1
114 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

While the consolidation of services with consequent re

the number of operators and other changes incident there

materially in making possible this saving in personne

means accounts for the total result achieved as every effo

was and is still being made to consolidate duties and elim

work as is found to be no longer essential

In the operations of the Fleet Corporation the cargo s

volve the greater part of the losses and it is in these se

success or failure must eventually be found Success m

reduced losses greater economy in every element that goes 

ing up the total of operating costs with a gradual impro

the tons of cargo carried per vessel and the gross revenue 

resulting therefrom

The business done in the cargo services during the fiscal 

has been approximately equal to that of the previous ye

view of the records shows that the payable tons of cargo 

increased and that there has been an increase of freight r

this fiscal year as compared with the last fiscal year

The consolidation of the various cargo services begun 

part of the last fiscal year but which became fully operat

the present fiscal year has permitted much more effective 

resulting among other benefits in a material reduction in 

age turn around which reflects directly in the reduced cost

tion The average turn around during the fiscal year 192

ed to 97 days which was reduced in the fiscal year 1925 to 

of 90 days There is perhaps no better index of operating 

ments than this item There is still more to be accomplish

direction and the next year should reflect a still lower av

around

A comparison of the profit and loss statements for the f

1924 and 1925 indicates that the total losses for fleet oper

reduced from about 41000 in 1924 to about 30000 

The reduction in losses of cargo lines forms the largest par

duction in total losses but improvement was also shown 

our passenger services and in other features of our operatio

Details with regard to the results of operations of cargo 

other services during the fiscal year may be found in the 

of profit and loss excluding liquidation fiscal year 1925 

included as Table No YI in the appendix

In March 1925 the Shipping Board sold the Californ

Line a passenger service operated between San Francisco 

in the Par East to Mr R Stanley Dollar and the Dollar 

Line and the transfer was practically completed at the e

fiscal year
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

The organization of the Fleet Corporation has not been ma

altered during the fiscal year the principal changes being t

pointment of a general manager and the transfer of a vice 

activities

dent to London

in Europe

to take

There

charge

have

of

however

all of the

been

Fleet

modificati

Corpos

the duties of various offices in the jurisdiction of department 

and otherwise to secure better coordination of activities and 

efficiency

Officers of the Corporation

During the fiscal year the following changes of officers were 

On July 21 1924 J E Sheedy was transferred to London 

land as vice president in charge of European affairs On J

1924 J E Sheedy resigned as a trustee effective July 26 

The same date David A Burke general comptroller was ele

trustee effective July 28 1924 to fill the vacancy T L 

treasurer resigned as a trustee and treasurer on July 21 1924 

tive July 31 1924 On July 21 1924 E II Schmidt was app

treasurer effective August 1 1924 vice T L Clear resigne

July 23 1924 E H Schmidt was elected a trustee effective A

1 1924 to fill the vacancy created by the resignation of T L 

On December 8 1924 the resignation of David A Burke as a t

effective November 28 1924 was accepted On January 28 

Asa F Davison was elected a vice president of the corpo

On February 4 1925 Vice President Davison was elected a 

of the corporation filling the vacancy created by the resigna

David A Burke On March 15 1925 Carl P Bremer resig

secretary of the corporation and was succeeded by Roy 11 M

who was appointed secretary effective April 8 1925

At the close of the fiscal year June 30 1925 the officers 

corporation and the trustees were as follows

L C Palmer president chairman of board of trustees

H I Cone trustee vice president and general manager

J E Sheedy vice president in charge of European affairs

Sidney Henry trustee vice president in charge of finance

W B Beene trustee vice president in charge of traffic

Asa F Davison trustee vice president in charge of operatio

J Harry Philbin trustee manager department of ship sales

E H Schmidt trustee treasurer

Roy H Morrill secretary

During the year the board of trustees held meetings reg

each week
116 NINTH ANNUAL REPORT UNITED STATES SKIPPING 

GENERAL MANAGER

In November 1924 H I Cone was appointed gener

of the Fleet Corporation and assigned the usual duti

office

In addition to exercising administrative superv ision 

affairs of the Fleet Corporation the general manager has 

ticular attention during the fiscal year 1925 to the re

personnel and to methods of effecting savings in other 

tive expenses As a result of these efforts the pay rolls 

expenses of the corporation have been materially reduce

Aside from general supervisory duties the general m

direct jurisdiction over the department of investigatio

statistical department and the secretary soffice reports 

connection with certain administrative details which are 

that office and are fully described in its report

Department of Investigation

The department of investigation has continued its wo

ducting investigations locating witnesses debtors etc fo

Corporation and Shipping Board as described in previo

reports

Statistical Department

The statistical department is responsible for the prepa

large number of reports and statements pertaining to the 

of the Fleet Corporation and consists of the actuarial d

the records and information division

The functions of the actuarial division are to receive 

various managing operators detailed reports covering the 

results of each individual voyage of Shipping Board v

from these reports to prepare voyage statements indicatin

detailed expenses and losses to the corporation to distr

voyage statements to interested officials department he

home office and to the district directors in the field as we

managing operators to prepare for the general comptro

plete statement of operating results for inclusion in hi

financial statement and to compile from the records abov

to basic data to permit the preparation of the considerab

of special reports and statements which are called for by 

of the Fleet Corporation and Shipping Board

The functions of the records and information division 

lect data relating to the acquisition operation and sta

Shipping Board vessels the principal work involving 

recording of all movements and changes in status of ves

the control of the Fleet Corporation and the maintenan
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

various filing systems necessary for the prompt and satis

dissemination of data There have been a number of pe

reports and numerous special statements issued for the purp

furnishing currently advices covering movements and posit

vessels and of changes in allocations and assignments etc

During the fiscal year the organization of the statistical 

ment has continued to be the subject of close study by rea

which its various elements have been coordinated with the 

that while the volume of detail has not materially decreas

efficiency has not been impaired the personnel has shown a 

reduction On July 1 1924 the department consisted of 

ployees with a pay roll a regating 83280 per annum w

at the end of the fiscal year 1925 there were 33 employees and 

roll of 6840

Secretary

During the past year the secretary or the assistant se

attended each meeting of the board of trustees or the ex

committee thereof and the minutes of all meetings hav

recorded in suitable books for that purpose notices of the 

taken being distributed on the day of each meeting to all int

departments and officials

This office has been called upon to furnish certified co

minutes and official documents on file for use in litigation a

sent representatives to testify in many cases in different 

of the country where it was also necessary to produce the o

books and documents

The secretary soffice handles directly administrative deta

taining to transportation and travel of employees rented spa

munication services etc In this connection an administrative 

ination of expense vouchers incident to travel of employees 

corporation is made and Government transportation is issue

request properly approved by department heads A carefu

of transportation authorized and the reasons given for its n

has resulted in a reduction in the cost involved

Under the direction of the general manager the secreta

cises control over all office space occupied by the Fleet Corp

in the home office and in the field During the past ye

solidations of functions of various departments and reduc

personnel have permitted the release of office space fo

occupied which has resulted in a saving in our annual 

Upon the expiration of certain leases during the year w

executed new leases at lower rental or moved our offices to 

erty under our control thereby eliminating the payment 

In handling of telegrams and cables several important 

were made during the past year which resulted in reduc
118 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

costs Leased telephone wires have been surrendered 

reduced communication between Norfolk and Washingto

ington and Baltimore Washington and Philadelphia a

delphia and New York The leased telegraph wire W

to Norfolk was also surrendered during the past year 

poration has availed itself of the use of Army and Na

wires wherever possible

A plan has been formulated by which managing oper

route through the Washington office of the corporation 

grams with respect to matters affecting the operation of 

Board vessels addressed to points in Europe except co

and urgent communications Where the corporation 

private wires the managing operators will make use of 

transmitting communications for the account of the co

It is proposed to place this procedure into effect at the 

of the next fiscal year or shortly thereafter and it is 

that a reduction of these charges will result from this m

transmission

The Bureau of Information supervised by its director 

under the jurisdiction of the secretary This bureau h

of the dissemination of all publicity relative to hearing

of policy sales of vessels and matters of general public 

The personnel division which handles the records files a

pertaining to personnel of the corporation is also tinder t

vision of the secretary

OPERATIONS

At the beginning of the fiscal year 1923 the organizat

the control of the vice president in charge of operations 

the following departments

Contract department

Stevedoring committee

Purchases and supplies department

Maintenance and repair department

Operating department

Construction department

Piers and wharves department

Internal changes during the closing months of the fisca

the organization at the end of the 12month period as follo

Radio section

Disability and vessel personnel section

Revenue and expense section

Contract division

Stevedoring and terminals division

Purchase and supply division

Maintenance and repair division
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

It will be noted that the principal changes are the elimin

the construction department which was transferred to 

president in chaige of finance and combination of the 

ing committee and the piers and wharves department 

stevedoring and terminals division the elimination of the 

ing department instead of which the radio disability and ve

sonnel and revenue and expense sections reported direct to 

president and the designation of other units as divisions 

of departments

During the fiscal year 1925 the personnel of operations 

terially reduced the number of employees exclusive of 

struction department on June 30 1924 being 1386 with 

annual pay roll of2718 570 while on June 30 1925 th

sponding figures were 942 employees and a pay roll of18349

Duty on Foreign Repairs

The following statistics are of interest in connection with 

repair entries handled during the fiscal year

Number of entries handled 

Amount of duties assessed 2

12

Total duties remitted 2

52

Total duties paid 3

75

Number

ment

of entries still awaiting decision by Treasury Depart

Total amount duties outstanding 

Payment of duties averaged less than 20 per cent of t

amounts assessed The amounts remitted are on the basis o

due to stress of weather or other casualties Records indic

maintenance work which includes painting has approxima

80000 for the entire operating fleet Upon this amount t

been paid a duty of about 40000 thus making the cost 

reconditioning around 120 00

Radio Section

The work of the radio section was carried on through 

year along the lines followed during the five preceding year

that toward the latter part the maintenance of radio a

aboard operating ships was handled by managing operator

same general way that they handle the maintenance of ot

equipment

During the first half of the year the maintenance of ra

paratus aboard operating ships the handling of radio traffic 

int the furnishing of ships with radio operators etc we

care of under contracts with the same contractors who pr

performed such service At the close of the year the mainten

such apparatus was handled by managing operators and on
120 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

accounting the furnishing of ships with radio operators 

executed under contracts with the Radio Corporation o

and the Independent Wireless Telegraph Co the Shi

Radio Service having gone out of business at the terminat

radio service contract

The aforementioned change in the manner of handling r

ice has resulted in a very appreciable reduction in the e

handling such service

The contract with the Submarine Signal Co has been 

A large number of Fleet Corporation vessels in distress 

torily secured assistance by means of radio and for the 

cessive year not a single ship was lost without trace

Radiocompasses were installed aboard all passenger stea

have been giving very satisfactory service

The radio section carefully observed the functionin

fathometer a new continuously indicating depth fi

sounding device aboard a coastwise merchant vessel 

aboard a vessel of the Coast and Geodetic Survey Servic

sembled comprehensive data concerning it for use in de

its practicability for service aboard Fleet Corporation vess

Considerable experimentation was carried on by this se

a view to extending the use of the radiocompass and the sy

ing of radio and submarine signals used to determine the 

of ships their distance from certain points etc The re

tained indicate that considerable advance in the art of n

ships by such means may be expected

Close cooperation with the Weather Bureau of the De

of Agriculture in obtaining meteorological observations fr

at sea was maintained and the results of such cooperation 

beneficial to shipping

Approximately 46000 were saved during the year b

mitting trans Atlantic messages destined to points in E

Navy radio stations to the Fleet Corporation sradio rece

tion in London

Many important conferences on radio communication ma

by the various Government departments radio interests 

attended by representatives of the radio section and much 

done in the way of making preparations for the forthcomi

national Telegraph Conference International Radio Co

and Fourth National Radio Conference

Disability and Vessel Personnel Section

This section has maintained a close supervision over d

of vessels at sea furnished relief and in conjunction 

insurance and traf departments arranged for the dive

towage to suitable ports of refuge
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

By employing Fleet Corporation steamers for the towage i

cases the payment of salvage to foreign and domestic compan

been practically avoided outside assistance being required i

one major case The number of disabilities during the past ye

been considerably reduced in comparison with former years

This unit arranged for diversion of Fleet Corporation carg

sels when westbound across the North Atlantic by way of the 

to United States ports during the winter months from Octo

April in order to avoid heavy weather damage

The usual functions in connection with the vessel personne

been continued as described in previous reports

Revenue and Expense Section

This section has made it study and analysis of revenue and e

reports for 1598 voyages and has through corrective me

brought about an improvement in the accuracy of the report

providing reasonably reliable figures for use in the prepara

the monthly financial statement considerably in advance 

actual voyage accounts

Through its activities savings have been accomplished and 

have been taken which have led to reductions in the various 

of voyage expenses

Contract Division

The contract division has during the fiscal year 1925 con

its work of interpreting contracts settling disputes and ad

claims with regard to contractual agreements handling sub

agreements and cooperating with the general comptroller sd

ment in adjustment of accounts etc

In the adjustment of claims arising under contracts of aff

ment and supervision over demurrage and kindred claims prev

referred to the legal department and London and other f

offices special attention was directed to the settlement of d

which had been pending for some years The total number of 

directly

3

handled during the year was 202 involving approxi

000 of which 63 claims amounting to approximately 20

were definitely disposed of resulting in the cash collection of 

60000 The bulk of these claims was for steamer demurrag

the other hand this division approved payment of despatch 

under contracts of affreightment to the extent of approxi

50000 resulting from more liberal conditions in favor of cha

The managing agents accounts adjustment committee crea

the board of trustees during 1922 for the purpose of settling ac

arising under various managing agency agreements rende

decisions involving approximately 1000 As a result 

activities settlements involving exchange of release agreement
122 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

concluded with 15 operators involving the payment o

mately 35000 by the corporation and receipts of app

150 00 and four additional settlements involving app

700 0 are in process of completion

During the year this division handled the execution o

ing agreement 1924 including amendments thereto by 

ing operators and carried out all administrative details n

place the agreement in effect

The policy to charter only in trades not conflicting wit

lar services and the continued depression of the char

resulted in the fixture of only one cargo steamer of 350 d

tons and three tugs on a bareboat basis Charter hi

amounted to approximately 67000

Considerable activity was directed toward the conso

foreign agents the creation of American agencies wher

ble and the fixing of fees in accordance with the policy 

the Fleet Corporation in connection with Operating 

1924 The result has been a material reduction in the 

foreign agents and the establishment of seven additiona

agencies during the past year at foreign ports which it 

will bring economies in the handling of vessels at foreig

the elimination of competition quicker turn arounds 

standardized charges for services rendered

Stevedoring and Terminals Division

During the year past it was deemed advisable to give the 

operators direct control of their stevedoring operations 

exercised by this division By this procedure their own 

arrangements are made which are supervised and appro

This action has resulted in many changes which it is be

benefit the Fleet Corporation

The new arrangements will soon be operative on all ro

New York and are now in effect on all routes out of P

ports except Seattle These arrangements will be extende

tions permit to other Atlantic coast and Gulf routes

The contracts entered upon both prior and subsequent 

arrangement are such that it is believed they will save t

tion a considerable amount of money

The terminal work of the division is twofoldthat pe

the Governmentowned Army bases and the Hoboken 

that pertaining to other than Governmentowned termi

are used by operating managers for Fleet Corporation v

pervision of the Norfolk Army base and Hoboken piers 

not under lease rests with this division and is exercised t
NINTH ANNUAL REPORT UNITED STATES SKIPPING BOARD 

trict offices It is also responsible for all betterments to and 

ditioning of the Governmentowned piers used by the Fleet Co

tion whether under lease or otherwise this work having been 

gated to the Fleet Corporation by the Shipping Board Wh

Army base piers were taken over from the War Department the

greatly deteriorated and much reconditioning work was impe

This has gone steadily forward to date During the fisca

551 666 58 were expended on such work under Fleet Corpo

supervision and similar work is still in progress These 

together with the Hoboken terminal returned a net profit fo

of 696 933 22an increase of 157 814 56over the previous fisca

The expenses of operation were 160 597 29 as against 6942

for the previous year

Supervisory control is also exercised over all charges to th

poration for privately owned piers used by its managing ope

When these piers are rented or leased exclusively for corpo

purposes these transactions are under the direct control o

division A general revision of all pier charges paid by the co

tion through its managing operators at the port of New for

been under way during the latter part of the fiscal year 

upon the present volume of business this revision will decrease 

charges to the corporation during the coming fiscal year by 

thousands of dollars

In addition to the work done in this country general contro

all similar functions is exercised abroad Local officials are in 

authority but their work is subject to review and correction b

division

Purchase and Supply Division

In the year just completed the purchase and supply divisio

purchased stored distributed and disposed of all materials 

plies and equipment required by the vessels and offices of the U

States Shipping Board and the United States Shipping 

Emergency Fleet Corporation with the exception of purchases 

by the managing operators of the corporation under their ope

agreements

OryanizationThe division has been supplemented by the 

tion of an inventory section taken from the operating depa

while the custody and maintenance of Hog Island has been 

ferred to the department of ship sales laidup fleet division 

February 15 1925 as the storehouse and its personnel at Hog 

had been discontinued

Fuel sectionThe fuel section has handled the details in c

tion with the procurement inspection storage and distrib

67677259
124 NINTH ANNUAL REPORT UNITED STATES sIIIPPING 

of fuel oil and bunker coal at domestic and foreign 

directing of the repair and operation of fuel oil storag

the accumulation and maintenance of statistical data co

duction consumption imports and exports storage of 

and its byproducts and bunker coal at world ports tog

the market prices for the purpose of studying market 

affecting the prices of these commodities

Most of the bunker fuel contracts have been made a

office in Washington the manager of the purchase a

division personally conducting negotiations for contra

Pacific coast and in Europe due to the fluctuation of 

at these points and the desirability of dealing directl

home offices of the suppliers

In the drawing up of all contracts due attention has b

the including of any and all clauses whereby the corpora

benefit Also advantage of all reduced costs has been 

in some cases lower prices have been secured after negot

For the fiscal year the prices under contracts uniform

lower than those previously in the open market Fo

effected during the fiscal year at Atlantic and Gulf por

ference between the cost of the oil actually taken und

and what it would have cost on the the open market is23

for Pacific Coast ports 54776 76for European ports 

for Asiatic ports 87600 or a grand total of2954 488

for the fiscal year

The approximate total quantities based on actual p

during 11 months and estimated performance for 1 mon

of bunker fuel oil purchased during the year are as foll

Quantity 

FUEL OIL

1194BI

B01 82F

350 963 

1 2468 191 

15917 5531 

COAL TO w

Domestic and f0reign 120 

Total cost ofuel 

The following table is a comparison of prices under c

domestic ports as of June 30 1924 and June 30 1925
NINTH ANNUAI REPORT UNITED STATES SHIPPING BOARD 

Comparison of contract prices domestic ports

IJune30 1924June 

terminal ter

per barrel per 

E1 ao5 

1395 

1395 

1305 

1395 29 

129 

19 

129 

145 

1 145 

Be Pedro

1 Market r Barge only

In April 1925 a contract was negotiated at London wit

AngloPersian Oil Co for the corporation sentire requirem

of fuel oil at United Iingdom ports for a period of 12 months 

May 1 1925 and to continue thereafter subject to cancellatio

either party on 90 days written notice at prices ranging from 7

per ton for cargo vesseds to 9s 6d per ton for the steamship L

than below the then existing market price with a further prov

that should the market price at any time throughout the co

period go below 70s per ton the price would be Is per ton less 

the market in the case of cargo vessels and 3s per ton less tha

market in the case of the Leviathan From May 1 to June 

compared to the market price on the same quantity of fuel o

savings under this contract are estimated to be 25000

In line with the past policy of maintaining a reserve of fu

at the Norfolk station there were in storage at this point on 

ary 1 1925 approximately 910 00 barrels of oil Due to th

crease which we were asked to pay under contract at this port 

the agreement expiring December 31 1924 it was decided to 

place the plant in operation and issue oil to our vessels at the l

price offered under contract

When the fueloil contract at San Francisco expired the m

price of fuel oil being over the contract price it was decided to 

a bunker station at San Francisco and supply the requiremen

our vessels at this port from the station using the oil unde

cargo contract A San Pedro
126 NINTH ANNUAL REPORT UNITED STATES SHIPPING 

The following table shows the leased and owned bunk

with their capacity in operation during the fiscal year e

30 1925

Name of station Capacity

in barrels Owned and ope

Balboa Cora Zone 50 WO Panama Canal Comm

Bermuda West Indies 35 west India Oil Co

4Jristobal CanalZO Ue 50000 Panama Canal Cmnm

Durban South Africa 110 did Vacuum Oil Co of B

Honolulu r II I 10 United States Shippi

Manila P I

I 16565 0QJO Do

MobileAla 110 IXq Do

Norfolk 100 0 Do

Pago Pago Samoa Sam Islands 110 0 Do

Ponta Delgada Azores 55 010 Tagus Oil Co

Portland Oreg 65 Associated Oil

So Thomas Isands 165000 M United States Shippi

ali SanFrancisco Calif

14 S9

General Petroleum Co

Seattlet WRash 11010 000 Do

I No definite quantity specified

The volume of business done at the above stations 

fiscal year 1925 and comparisons of prices on June 30 

June 30 1925 are shown in the following table

Port

Barrels iss led Issue price

riming frseal as of

car ending June 30

June 30 1925 IJ24

Issue pr

June as1925of3

Balboa 89523 7 145 17

Bermuda 2823 58 215 1

Cristobal 94711 591 145 17

Durban None 250 25

Iionnlulu 390 74 57 165 15

Manila 077 118 110 20

Mobile 496 003 781 125 L 

Norfolk 14 S9 140 L 

Ponta Delgada 3884 90 20 2

Portland 3i9 388 62 160 15

PagoPop Nnne 

St Thomas 64949 56 1 180 18

San Francisco N1 960 f0 1 140 14

Seattle 921 557 92 160 15

I Storage station started deliveries May 4 1925

The maintenance of stocks of fuel oil at foreign an

bunkering stations provides profitable employment for s

tank steamers and at the beginning of the present fiscal 

remained in floating storage laidup tankers approxim

000 barrels of fuel oil out of a total of3186 074 barrels o

nally placed in floating storago daring a period extending 

thr e years In September 1924 the last of this oil wa

of floating storage and was reissued or sold with a loss 

of only 2928 barrels or 09 of 1 per cent

At the beginning of the fiscal year our bunker coal re

for passenger and cargo vessels were covered by a contr

York running until June 14 1925 at a price of 589 pe

trimmed into bunkers This was the only domestic co

then in effect as it was decided to purchase our requ
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

Philadelphia Baltimore and Norfolk on the spot market 

when required feeling that the small quantity of coal requ

these ports would not be of sufficient inducement to contrac

quote their lowest prices

Our decision to stay on the market at these ports has resu

the purchase of our spot requirements of coal at prices consi

under the established market as in a number of cases advanta

taken of small quantities of coal on demurrage which seller

willing to sell in order to avoid an accumulation of dem

charges at prices much under the existing market

Our European bunker coal requirements were covered b

tracts the principal contract covering our passenger vessels 

merhaven running from July 1 1024 to June 30 1925 All o

contracts were at maximum prices subject to the fall c

During the fiscal year the market price of bunker coal decl

Bremerhaven and Rotterdam and in accordance with the 

clause in the contracts we received the advantage of this red

in the market

The fuel section throunh its representation on the fuelco

tion committee has been in close cooperation with the comm

all times and through its district fuel inspector assists ma

in accomplishing the aims of this committee

Purchasing sectionThe purchasing section purchased ma

supplies and equipment for the corporation with the excep

bunker fuel and office supplies stationery books periodicals 

ing and furniture and such purchases as were made by the m

ing operators of the corporation under the operating agree

These purchases principally consist of contracts covering the 

requirements of our vessels for topside paints bottom paints 

cating oils packings and condenser tubes manufactured in a

ance with the corporation sspecifications Purchases under 

contracts amounted to about1400 0

Buying in this manner the Fleet Corporation obtained fu

vantage of its bulk purchasing power as the business in such 

volume is sufficiently valuable to attract the competition of th

houses in each line of industry affected thereby A comparis

the prices paid indicates that purchases in this manner sav

Fleet Corporation over a half million dollars above the cost o

lar material at the wholesale prices referred to and if compare

the prices ordinarily obtained by steamship companies repr

even greater savings to the Fleet Corporation These contra

addition to the monetary savings also give the Fleet Corpo

assurance of uniform and good quality

In addition to these contracts the purchasine section also b

the requirements of all passenger vessels of the fleet of such 
128 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

as linens carpets glassware chinaware and other furnis

the requirements of the entire fleet as to boiler tubes conde

tail shafts and propeller blades and hubs which purchas

fiscal year amounted to over 700 0

At certain ports where the quantities involved were 

large to justify such methods of purchase contracts were 

subsistence supplies for the various laidup fleets and for 

requirements of grate bars fire brick and clay dunnage fr

laundry service and similar items which afforded uniform 

quality at the lowest possible prices

The total amount of purchases made by Fleet Corporat

exclusive of bunker fuel and purchases on contracts mentio

during the fiscal year was approximately4000

General instructions were issued to all managing op

vessels for the Fleet Corporation systematizing and sta

the procedure they are to observe in purchasing material

and equipment for the vessels which they operate for ou

The issuance of the regulations were followed up by pers

to the managing operators by our trained district purchasi

and many specific instances have shown that these instruc

in addition to providing for the proper expenditure of f

duced a very material reduction in the cost of supplies th

introduction of competitive bidding and bulk purchasing

All articles of food purchased for our passenger vessels a

various laidup fleets are rigidly inspected by inspect

various bureaus of the United States Department of A

and this together with the specifications under which the

are purchased and which were prepared in collaboration w

of that department has assured our passengers officers 

of the vessels of the very best quality at very reasonable p

Stores and sales sectionThe stores and sales section 

and directed the details in connection with the receipt 

storage delivery and sale of usable and surplus obsolete 

materials supplies and equipment carried in stock for s

tion or turned over to this division for disposition

In line with the policy to liquidate and reduce the sto

terials on hand a survey was made by a committee appoin

purpose of surveying stocks in storage at various point

that surplus obsolete and scrap materials might be dete

disposed of promptly This procedure will be continued

Sales approximating 900 0 were made and in add

rials valued at approximately 400 0 were transferre

Government departments with and without exchange 

Materials approximating 60000 in value were obtained b

Corporation from the other Government departments the
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

in the expenditure of Government funds in an amount a

mating 460 00

The storehouses at Boston Philadelphia Baltimore and Sa

were discontinued and the storehouse at Norfolk moved fro

rented quarters to the Army base all of which in addition to 

tions in pay rolls resulted in an annual saving of approxi

32000 in rentals of storehouses

Inventory sectionThis section succeeded to the activities 

voyage supplies section and has been engaged in closing the 

of deck engine and steward stores and subsistence stores for 

fixed allowances were made to the managing operators these 

ances having been discontinued with the inauguration 

Operating agreement 1921

This section handled details of inventory and accounting f

terials and supplies aboard vessels at the time of transfe

managing operators charterers laidup fleet or to purchaser

Inland traffie sectionThe inland traffic section supervis

transportation of materials supplies and equipment for use 

corporation including preparation of bills of lading prosecu

claims and verification of transportation vouchers

Office supply sectionThe office supply section handled the 

of purchasing receiving and storing and issuing of office su

stationery books periodicals printing and furniture requir

the use of the Shipping Board and Fleet Corporation

Maintenance and Repair Division

The fiscal year 1925 was marked by a major change in po

the handling of repair work This involved the turning o

the operators under certain regulations and limitations the ha

of their own repairs This has naturally resulted in a dras

duction in personnel of the department

The other major event of the year was the inauguration 

Shipping Board splan to convert a number of steam vessels to 

ships the work being handled by this department

The general scheme of organization as previously followe

retained throughoht the year a complete description of the fun

of the various units of the division is contained in the annual 

for the fiscal year 1924 p 55

Managing operators handling own repairsDuring the 

year nine managing operators were permitted to handle the

repairs under regulations prescribed by this division The o

ing agreement 1924 contemplated turning over repairs to 

operators when the port staff of the operator was deemed ad

and competent to handle the work

The port staff of each operator was very carefully considere

various changes were suggested in quite a number of them to 

the proper handling of this important feature of ship ope
130 NINTH ANNUAL REPORT UNITED STATES SIIIPPING B

However during the year repairs were turned over to t

ing operators one by one as they measured up to standa

the clone of the year all operators were handling their 

except for the passenger vessels of the Pan America Lin

tank steamers operated by Walker Daly and McAllister 

Repair costs Expenditures for repairs and alterations 

past fiscal year have continued to decrease markedly an

reaching a very creditable basis on the whole The phys

tion of the vessels has been materially improved due to

1 More efficient personnel

2 Better operation from both port staff and ship f

3 Fuel conservation work and desire of officers and 

for high efficiency ratings

4 Spirit of rivalry developing between vessels of a 

operator and also vessels of a class

It is to be noted the Fleet Corporation during the past 

contracted for about6000 less repair work includin

repairs than during the previous fiscal year or a reductio

33 per cent

The policy established in 1920 of performing all wor

after receiving competitive bids has been keenly followe

suring that the Fleet Corporation generally receives the lo

sible prices for its repair work

In commenting on this reduction in repair costs full cre

be given to the effort on the part of the staff of the man

erators toward increasing the efficiency of the crews and 

formance of more work by them on their own vessels

Passenger vessel repairsThe expenditures for repairs 

ations on passenger vessels amounted to a considerable su

the past fiscal year This was mainly incurred in comp

approved alterations and the usual layup overhaul on t

of the California Orient Line and the American Oriental M

To clean up all outstanding approved alterations and to 

ships a needed overhaul after long continuous service on 

North Pacific route a layup schedule was carried out o

vessels of the American Oriental Mail Line and all work 

complished during these periods at the following costs

Vmel Cost

President Grant 230 961 00

President McKinley 206 11 84

President Jefferson 204 53 17

President Jackson 203 387 10

President Madison 209 4859

Since the reconditioning periods of the vessels of these t

they have been operating with the ordinary moderate repair 

generally expected from steamers of this class Exceedi
NINTII ANNUAL REPORT UNITED STATES SnIPPING BOAR

alterations have been made since the overhauling and thos

have been placed in hand were absolutely necessary

The repair costs on the four passenger vessels of the Pan A

Line have been commendably reduced but during the yea

higher than they should be because of heavy expenditures 

tated by extensive condenser retubing IIowever the norma

tenance expenditures have been growing less trip by trip a

will be brought to the minimum that can be expected from 

senger vessel on such a long run

The policy of standardizing equipment for the passenger 

has been pursued throughout the year and in all there has bee

lished some 400 standards This equipment is now being is

all passenger ships in operation

Dry docksInspections were conducted during the year 

dry docks eased by the board and all docks sold in which th

still retains an interest Also a record was kept of the e

and employment of those docks under lease and in which th

participates in the earnings

Spot shipsThe policy of holding in reserve a number of 

in spot conditionthat is in proper repair to proceed to 

48 hours noticewas continued throughout the year To 

plish this it was necessary to repair upward of 100 vessels f

condition Many of these vessels were those turned back to 

by managing operators for various purposes and other

brought out of the laid up fleet for the purpose

AlterationsVery close attention has been given during t

to limiting to the absolute minimum the performance of alte

Only those were authorized that appeared to be absolutely 

sary and this action has resulted in decreasing the cost of o

without impairing the operating efficiency or the physical c

of the vessels

There were also carried forward during the year the alt

to the winch steam exhaust piping on the Hog Island ty

class of vessels which is described in the last annual repor

alteration is responsible for a large portion of the expendi

alterations during the past year There was another al

made on this same class of vessel during the year and about 

sels were completed This involved the installation of a new 

block and cheek plates on the rudders of these ships

Materials engineeringWork of the materials section h

tinued along the same general lines as indicated in previous 

This unit has cooperated with the Federal specifications bo

American marine standards committee the American Soc

Testing Materials and other bodies working on materials p

New specifications have been issued for materials and 

specifications have been revised where such revision was r

676772510
132 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

Every endeavor has been made to standardize materials 

as possible and to use only such materials as are commerc

able in the open market

The materials laboratory has been further developed 

equipped to handle practically all of the routine work req

policy of utilizing the Navy Department for inspections 

materials such as condenser tubes has been continued 

ments have also been made to have frequent simulative s

made by the Navy Department on samples of fire brick re

deliveries made on Shipping Board vessels

A large number of tests are being made on the materia

into the construction of Diesel engines with a view to se

nite data as to the performance of various materials in su

Turbine and gearsThe four types of turbines used in 

fleet namely Parsons Bethlehem and Newport New

Electric and Westinghousehave operated with general s

although difficulties have been experienced in some insta

measures taken to correct these difficulties indicate succes

Careful study was made of the gear situation and by 

servation extended mileage has been obtained Sets of r

elements were installed and additional sets ordered where 

To relieve the situation during the manufacture of replac

and to save time and conserve funds highspeed gears we

from laidup vessels and used on active steamers

During the year it became apparent that the motor stato

lation on the five electric drive ships was defective and 

action was taken to rewind the motors with new coils prot

improved insulation The main turbines and generators 

overhauled

Fuel conservationThe work of fuel conservation was 

getically carried forward during the year and extended 

covered all ports in the United States and all active ves

conservation inspectors were placed in all home ports a

the year 1274 vessels were inspected at the termination o

Following these inspections of all departments of the 

analysis was made of the logs and a standard report drawn 

arrived at the efficiency of the vessel during the voyage T

were sent to all interested parties including the managing 

to whom a letter of comment was written with the c

criticisms of the section

The work of the fuel schools at the navy yard Philade

and 1llare Island Calif was continued with marked succ

the year Two hundred and ninetythree men attended 

school at Philadelphia making a total attendance at the s

its establishment of 783 Two hundred and fiftyfour me
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

vantage of the course at Alare Island In all 1037 men h

tended the two schools 122 of whom were from the Navy an

Guard

The benefits derived from these schools have been of ines

value to the Fleet Corporation and the American merchant 

as a whole They have offered the opportunity to American 

engineers to become acquainted with information concern

theory and practice of fuel combustion that they have neve

ously had

In an endeavor to promote the efficiency of oil combustio

were conducted at the fuel oil testing plant navy yard P

phia on three types of proprietary oil burners

The fuel conservation section has also followed experimen

have been made during the year to develop a process for the e

cal and practical burning of pulverized coal Such a process 

result in quite marked reduced fuel consumption coupled w

extraction of a far greater number of heat units from the co

is now obtained This matter will be followed further dur

coming year

The year witnessed the institution of the system of paying 

to those engineers appearing on the honor roll The bo

trustees approved granting a 50 bonus to each of the en

whose names appeared on the honor roll The roll was lim

50 names The first bonuses were paid for the period July 

to December 31 1924 the men securing this bonus were those 

the highest efficiency ratings for the period covered Ther

however such a large number of engineers with noteworthy 

that it was decided to establish a secondary roll called the 

able mention cell on which the names of the neat 50 enginee

entered These rolls and the bonus have produced a great s

rivalry and healthful competition among the engineers wh

not fail to redound to the benefit of the corporation and be r

in decreased operating costs

The bonus of chief engineers excited such favorable comme

it was deemed most advantageous to establish a similar bo

captains This was subsequently approved and is effective 

period January 1 1925 to June 30 1925 The bonus will 

each and will be limited to a total of not more than 50 mas

All sea performance standards had been set prior to thi

year However during the year as the result of experience 

in the actual application of these standards revisions have bee

thereto to take care of and allow for numerous variables a

tingencies incident to certain types of vessels peculiarities o

routes etc

Having covered the sea consumption standards quite thor

attention was directed to the port consumption which repre
134 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

k

large percentage of the total fuel consumed Standards 

covering port consumption and a form drawn up for arriv

efficieney of the vessel in this regard This act has serve

attention on this most important item of fuel expenditur

served to bring home to the managing operators and the 

engine officers the wide field for fuel saving that exists in 

sumption and the some spirit of cooperation in reducing 

sumption has been exhibited as in the sea standards

The fuel conservation section in anticipation of the e

operation of the 14 vessels being converted to Diesel prop

worked out a voyage report form for this type of vessel

The work of fuel conservation has been very favorably r

the decrease of fuel burned on the vessels the spirit of c

and competition aroused amongst the crews of the various 

stability of the personnel on Fleet Corporation steamers a

reflected in decreased maintenance cots and the bette

appearance of the vessels

Diesel conversionThe physical details in connection 

conversion of 14 steam vessels to motor ships were hand

the Diesel section of this division

Executive matters were handled by the Bureau of Co

and are covered in the report of that branch

Inspection of vesse78 scrappedIn addition to the ins

vessels sold for conversion this division Was called upon d

year to inspect the work of scrapping of 18 vessels sold fo

pose The vessels inspected were the following

Vessel Type 

WestEagle Cargo 

Philippines Cargo erOerman 

Western Comet Cargo 

Black Arrow Cargo and pasenger erGerman 

Andelusia Cargo exGermau 

Amphion Cargo and passenger exGerman 

Asamn y

Cargo eaGerman 

Wyandotte do 

Armenia do 

Neese do 

Coosa do 

Wachwett do 

Mercury Cargo and passenger esGermau 

Nansemond do 

VonSfetmen do 

Burnside Corgo 

Zaca do 

Freedom Cargo and passenger esGerman 

Inspection of vessels under section 11 merchant m

1920During the year inspections Were conducted on fi

to finance the construction of which loans were made from 

struction loan fund Three of these vessels were of the 

and cargo type for coastwise service and two of the pass

for overnight service between New York and Boston
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

Details of these steamers are as follows

Name I Owner I Builder Ty

Cherokee Seminole Newport Real Shipbuild Passen

Steamship Co

doI ing Dry Dock Co i and an do do

chair L Ian

East n Steamshi tCO do dn

Shipant p Bethlehem Shipbuilding I Puseng

Corporation Sparrows

Point Dld

Ton

Gross N

gar 5300 L

rgo

er 4980 27

4959 27

Inspection of vessels under section 23 27vichant vu rive act 

Inspections were conducted by this department during the y

16 vessels constructed under the provisions of section 23 

merchant marine act 1920 Making up this total were 1 pa

and freight vessel 7 bulk freighters for Great Lakes service 

wise freighter and 7 tankers 1 of which was Diesel drive 

Diesel electric

Details of these steamers are as follows

Name Owner Builder

Tovvv

Type

Gross N

Thomas P Bevl Mystic Steamship Both Iron work Steelf eighter 5818 3r1

Co Bath Me

Jos D Frantz Columbia Steamea OreutLkiEngine Steel bulk 8 269 64

17

ship Co IYorks R i v e r frohbr

i

tinge Mich

orzell Clarlson So Transit T pbuild do 203 678

Co ing Co 9o1cdo

Ohio 

James IacNraugh Rilson Transit Great Lakes Engine do 8299 AG

ton Co Rirks It i v e r 

Rouge Mich Philip D Block Pioneer Steam American Shipdo 7931 621

shop Co building Cv Lo

m Ohio

EdwardJ IIerwind Frvnklin Steam Great Lakes Encine do i8318 651

ship CO Works River

Raugr Mich t

Fred G Doi do American Ship SteelhcighterJ 8 BS9 694

building Co Lo

A L Kent Mystic Steamship BathramIron OhioWorks do 5 SO 3 6

Co Both

Atlantic Sun Sun Oil Co Sun Shipbuilding b Steel tanker G 6GG 90

1 

Dry D k Co

Newport News

GeorgeR ashfngtov Old

S

Da minion Newport News Start freighter 5781 310

evmshop Co Shipbuilding and Pass

Dry llock Co gee

Delaware Sun Sun Oil Co e Sun Shipbuilding Slecltanker 8 9G4 561

Co

Sviaua Paeian Alai New Pork Ship do 6879 

Steamship Co building Corpora

thin

J N Pew Sun Oil Co Sun ShipbufldinB do 9074 647

Co

Standard Service Standard Oil Co Bethlehem Ship Steel tanker 1274 76

of California building Co motomhip Alaska

FDMillman

Standard do do I dv12711 7

do do Steel tanker 0936 6 o
136 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

Inspection of vessels sold Inspections were conducted 

vals during the year on a number of vessels which had bee

the Shipping Board to various private interests These ve

sold with certain provisions for changes to be made ther

them for a particular service more efficient operation etc 

20 vessels were involved Four were converted to Diesel p

and two to Diesel electric propulsion

TRAFFIC

The vice president in charge of traffic has jurisdiction 

traffic and advertising departments

TRAFFIC DEPARTMENT

In line with the program of the Fleet Corporation for a 

in its overhead expenses the personnel under the vice pre

charge of traffic was reduced from a total of 178 on June 

to 147 at the end of the fiscal year 1925 with a correspondi

tion in pay roll from 443 620 to 399 460

The annual report for the fiscal year 1924 outlines the 

of the traffic department which are performed through th

ing divisions

EUROPEAN AND MEDITERRANEAN TRADES DIvISIONCov

European ports including United Kingdom and Mediterra

Black Sea ports

SOITTII AMERICAN AND WEST INDIES TRADES DIVISION

FAR EAST AND LONGVOYAGE TRADES DI4TSIOtiCovering 

of Japan China Philippine Islands Dutch East Indies S

tlement Australia India and Nest South and East Afric

CHARTERING DlvrsroNFor the chartering of such tank

available for commercial business after the requirements o

department have been met and the negotiation of bulk carg

ing in regular general cargo steamers under charter partie

PASSENGER AND AIAILs DIVISIONDealing with Fleet Co

passenger services including booking of passengers Thi

also maintains contact with the Post Office Department in 

est of the procurement of mails for our services

CLAIMS DIVISIONFor the handling and settlement 

claims arising from operation of services

INLAND OFFIcEs DAIsIONProviding a medium of per

tact between managing agents of Fleet Corporation stea

importers and exporters Offices are maintained at W

New York Detroit Chicago Minneapolis St Louis Ka

Memphis and Cincinnati

District traffic offices are maintained in the following 

and foreign ports
the traffic department The chartering department and the inland

offices division which had previously been maintained as separate

organizations were made divisions of the traffic department

Consolidations

The rearrangement of services by consolidations has made it possi

ble in a number of cases to maintain services with a less number

of steamers While the work of consolidating services was well

under way at the close of the fiscal year 1924 but a few of these

were completed and in effect at that time During the fiscal year just

ended however material progress was made in this regard as will

be noted in the reports of the various trades divisions

Enropean and Mediterranean Trades Division

On June 30 1925 168 freight and 6 passenger ships were employed

in the services of the European and Mediterranean division whereas

on June 30 1924 there were 176 freight steamers and 6 passenger

ships in these services While depressed conditions continued to

prevail there was little change in freight rates with the exception

of those from North Atlantic ports to Mediterranean ports A

general increase in rates from North Atlantic ports to ports on the

west coast of Italy was effected due to the formation of a conference

Despite conditions obtaining the tonnage and revenues of our steam

ers compared favorably with the previous year

During the fiscal year the services previously maintained by three

operators from North Atlantic ports to Mediterranean and Black Sea

ports were consolidated and placed in the hands of one managing

operator These services are now operated under the trade name

American Export Lines

The services previously operated from South Atlantic ports to

the United Kingdom and continental ports under the management

of three operators were consolidated and placed in the hands of
Texas ports to northern France and Belgium were combined and

placed in the hands of one managing operator These services were

designated Southern States Line to Germany and Holland and

Texas Star Line to northern France and Belgium

During the fiscal year the services previously managed by two

managing operators from North Atlantic ports to Antwerp and

Rotterdam and from New York to Rotterdam were combined and

placed in the hands of one managing operator These services were

designated as American Diamond Lines

The services from North Atlantic ports to French ports were

designated as America France Line

During the year the services from Mobile Pensacola and Gulfport

to the United hingdom Germany Holland Belgium and French

ports were designated as the 11lobile Oceanic Line

The name Mississippi ValleyEuropean Line was assigned to

the New Orleans Havre Antwerp service

The services from Gulf ports to Portuguese Spanish and north

African ports west of Bizerta were given the trade name Gulf

West Mediterranean Line

During the midsummer and fall of 1924 additional steamers were

placed in service from Gulf ports to European ports in order to

relieve the situation brought about by the heavy demand for ton

nage due to the shortage of the grain crop in Europe These steamers

made 34 voyages There were six full chargoes of wheat the balance

consisting of combined cargoes of wheat flour and cotton

South American and Nest Indies Trades Division

The services to the east coast of South America employed on June

30 1925 4 fast combination passenger and cargo steamers operat

in between New York Rio de Janeiro Santos Montevideo and

Buenos Aires 12 cargo steamers operating from and to Atlantic coast

ports 15 vessels out of Gulf ports and 5 out of Pacific coast ports
NINTII ANNUAL REPORT UNITED STATES SHIPPING BOAR

This represents an increase of 3 cargo steamers over the tota

ber in the general cargo service at the close of the precedin

year

A general cargo service from Philadelphia and Hampton 

was added in the cast coast of South America services to m

requirements of the trade

The trade names which during the year have been establis

the several lines are

Express passenger and cargo service from New YorkPan America Lin

General cargo services out of Atlantic coast ports American Republ

General cargo service from Mobile and Gulf ports other than New O

American Dispatch Line

General cargo service from New Orleans and Gulf ports other than 

American Delta Line

General cargo service from Pacific coast ports Pacific Argentine Bra

The establishment of additional River Plate services out 

port of New York has materially increased the competition to 

by the Pan America Line and the American Republics Line b

of these lines have been able to hold their positions in this 

The Pan America Line continues to be of the higllest value 

maintenance of quick regular and dependable communica

tween the United States and Brazil Uruguay and the Argen

The Atlantic coast ports other than New York and Bos

served regularly in their trade with the east coast of South A

only by the steamers of the American Republics Line

From the Gulf and from the Pacific coast there are no 

general cargo lines except those maintained by the Fleet Corp

i e the American Dispatch Line to the River Plate the Am

Delta Line to Brazil and the River Plate and the Pacific Ar

Brazil Line

Automobiles dry goods agricultural implements machine

oil and lubricating oil naval stores and lumber represent th

cipal commodities which have been carried from United 

ports while coffee hides fertilizer quebracho extract and 

constitute the more important business homeward Refri

space offered principally by the passenger lines permits 

change of fruits and other articles in the reverse seasons w

spectively obtain in North and South America

Except during the usual seasonal periods of weakness the 

for space southbound has been good and the steamers genera

gone out full From the Pacific coast the improvement h

marked The need of the several regular lines to restrict th

ber of sailings to Santos thus in a measure to obviate delays i

to continued severe congestion there caused a temporary es

strong demand for space to that port and several steamers 
I40 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

full cargoes to Santos one of these was a Shipping Board s

the American Republics Line Improvement in condition

port does not yet assure the early return to normal conditio

Homeward from the River Plate cargo offerings have b

gressively less during the fiscal year and no improvement 

ately is in sight There has not been a strong market fo

and with a poor demand for space in the Plate rates on 

modity and on others have sagged to a low point

The Brazil coffee market has been very erratic and hig

have brought about reduced sales to the United States Sh

carried in the United States have influenced the coffee mov

the passenger lines making quicker deliveries at New fo

during the last six months of the fiscal year the gene

steamers to New York have not been able successfully to 

with the passenger lines

Our lines have fared well in both directions as compare

foreign competitive lines Confidence in the dependability 

ciency of the Shipping Board services is evidenced by the 

position attained by the lines in the east coast of South 

trade

Southbound rates generally have held firm during the yea

on some commodities have been driven down but should 

proved conditions again reach a better level While rates 

River Plata have been low the coffee rate from Brazil has i

and remained firm

The trade with South America has developed to encoura

portions and it is expected that there will be an increasing 

for the manufactures of the United States which unless t

tion changes will exceed the volume of return cargoes in the 

cargo steamers The future in this trade is most encoura

Since the last report a steamer which had been employe

West Indies trade to serve Haitian outports has been wi

other arrangements having been made to maintain these c

cations

There remain as during the previous fiscal year two ste

service between New York Trinidad and the British Du

French Guianas Transshipping arrangements recently h

made whereby hereafter cargo for French Guiana will 

shipped from a port in Dutch Guiana This line of two 

has been given the name American Antilles Line

Far East and LongVoyage Trades Division

At the end of the fiscal year 77 vessels were employed in 

East and longvoyage trades division as compared with 96 

at the end of the fiscal year 1924 During the year the 

services were given the trade names indicated
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

Atlantic Gulforiental and Dutch East Indies services American 

Line

North AtlanticSouth African serviceAmerican South African Lin

North Atlantic and GulfWest African service American West Afric

North AtlanticIndian serviceAmerican Indian Line

North AtlanticAustralian service Atlantic Australian Line

Seattleoriental services freight and passenger American Orien

Line

San FranciscoIlonolulu oriental service freight and passenger C

Orient Line

Columbia Riveroriental service Oregon Oriental Line

Pacific coast Australian serrice PacfBC Australia Line

San FranciscoLos Angelesoriental service freight American F

Line

The GulfOrient New YorkOrient and New YorkDutc

Indies services which were previously handled by three m

operators were consolidated and placed in the hands of one 

ing operator As will be noted above these services are now o

under the trade name American Pioneer Line

During the year the California Orient Line comprising fiv

bination passenger and cargo steamers was sold to private Am

interests

The annual report for the previous fiscal year outlined 

being made for the discontinuance of the oriental feeder 

between India ports and Hongkong This service was disco

during the fiscal year 1925

Trade conditions to the Orient from the Atlantic and 

coasts have been subnormal as the result of the civil distu

in China fluctuations of exchange in Japan and the high p

wheat and flour resulting in a measure from poor crops 

in Oregon and Washington

There has been little change in conditions in the Australia

ice from the Atlantic and Pacific coasts The India service 

no improvement during the year

The services previously handled by two managing operato

North Atlantic and Gulf ports to West African and South A

ports were consolidated and placed in the hands of one ma

operator As shown above these services are now known as A

can West African Dine and American South African 

These lines have shown material improvement during th

This is particularly true of the West African service a tra

rangement having been effected whereby revenues have gre

creased and the turn around of steamers decreased with a con

reduction in voyage expenses
142 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

Passenger and 11lails Division

During the year the work of maintaining stencils of pr

passengers and the mailing of literature previously carried 

advertising department was transferred to this division

At the close of the fiscal year there were 15 passenger 

operation as follows

UNITED STATES LISEs

Leviathan New York to Cherbourg Sout

George Washington

President Roosevelt New York to Flymouth Che

President Harding Bremen with frequent call

America Queenstown

Republic

PAS AMEarcA LINE

Pan America

Southern Cross

dew York to Rio de Janeiro M

American Legion

Buenos Aires every other st

WesternWorld ing at Santos southbound

AMERICAS ORISSTAL MAIL LINE

President Jackson

President Jefferson

President Madison

Seattle and Victoria to Yokoh

President McKinley Shanghai Hongkong and M

President Grant

During the year passenger and freight Service operated 

Francisco to Honolulu and oriental ports was given the tr

California Orient Line and the freight and passeng

from Seattle to oriental ports was given the trade name A

Oriental Mail Line

As mentioned elsewhere in this report the California O

was sold to private interests daring the year resulting in a 

of five passenger steamers as compared with the previous 

European Passenger Service

Effective January 1 1925 passenger rates were increased 

by trans Atlantic passenger lines This increase effe

steamers Leviathan America and Republic and has resul

creased revenues

In order to provide additional accommodations a n

rooms were installed on E deck of the America This has 

the capacity of this vessel to provide for slightly more 

additional passengers

South American Passenger Service

Due to increased firstclass passenger rates the revenu

steamers of this line have improved during the year 

continues to show improvement and is ranked second to n
NINTH ANNUAL EEPORT UNITED STATES SIIIPPING BOA

trade As the result of service given the line is carrying the 

percentage of the first and third class travel Firstclass c

southbound increased approximately 15 per cent over the 

Year

SeattleOrient Passenger Service

While this line has not shown material improvement o

previous year it is believed that this is largely the result of 

normal conditions prevailing in the Orient

Mails

This division continued to cooperate closely with the Po

Department The following table shows the percentage 

class mail and parcelpost matter carried on Fleet Corpora

privately owned American vessels in the various trades wh

senger services are maintained

Percentage of United States mail carried ara American vessels during 

year 1921125

Service

Percentage carried Percentage a rried Total 

on Fleet Onrpo on private 4mer carri

ration vessels icon vessels I eam

Regular I Parcel post I Regular I Parcel PA I Regula

New York to Europe 328 370 3 a 3

1 

San FranclectoOrlen oath America 72 b29 so 362 1 U 

Seattle to the Orient 693 812 

Claims Division

On July 1 1021 there were pending in this division claim

gating 172 351 71 while at the close of the fiscal year co

this report this amount had been reduced to 121 G22 20in 

claims During the year there were disposed of claims agg

355 9037

Special attention has been given to prevention of claims 

claims have been received which grew out of a condition 

was apparent could be corrected they have been brought to t

tion of those directly interested

It has been observed that complaints with regard to the 

of claims have been brought down to a minimum

This division has been active in endeavoring to improv

insurance ratings of our steamers with good results A nu

difrerentials previously existing against our steamers have b

inated Recently an agreement was entered into frith all th

can underwriters covering a certain class of insurance where

pers patronizing our steamers on the commodity involved now 

preferential class A insurance rates
144 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

Inland Offices Division

During the year additional offices were established at N

and Cincinnati

This division continued its close cooperation with the 

agents in the interest of securing freight and passenger bu

Fleet Corporation lines with satisfactory results Particu

tion has been given to see that importers and exporters 

constantly informed of changes and improvements in ou

services sailing dates of steamers etc through personal co

correspondence

The monthly sailing schedule distributed by this div

grown in value and reports indicate that it is followed clo

great number of shippers The mailing list has increased to 

mately 30000

Chartering Division

The decline in tanker rates continued and at the end of th

market had reached such a low level that practically all t

commercial business were withdrawn Despite conditions 

during the year the results of our operations were very sa

Indications at this time however do not point to an early 

ening of the tanker market

This division negotiated during the year charters of c

tank steamers totaling 902 549 dead weight tons and part c

the extent of approximately 35000 tons

ADvERTISIxG DEPARTMENT

The advertising department has charge of all advertisin

Fleet Corporation services and also arranges for the placi

vertising covering the sale of surplus property material s

Due to reduction in advertising appropriation there were 

of changes in advertising policies during the year To 

reduction practically all magazine advertising during the 

months of the fiscal year was discontinued Newspaper ad

was reduced to the publication of sailing dates and such vi

mation in a limited list of papers

With the reduction in the appropriation it was also nec

discontinue the coupon or inquiry type of advertisin

had been used during the previous two and onehalf years 

quently the solicitation of direct inquiries was discontinued 

advertising followed the general publicity type

In February 1925 the contract with the Gundlach Ad

Agency through which organization the Fleet Corpora

been placing its domestic advertising for passenger serv

canceled New contracts were made with Barton Du
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

Osborne Inc and Dorrance Sullivan Co Barton Du

Osborne Inc were selected to place the advertising for the 

States Lines and the advertising of sales of surplus propert

bids etc Dorrance Sullivan Co were selected to place the 

tising of the Pan American Line California Orient Line 

American Oriental flail Line This company has also tak

the advertising of the cargo vessels services which heretof

practically been handled and placed direct by the advertis

partment The agreements with the new agencies becam

tive April 1 1925 These agencies cooperate on all matt

their officials with the president of the Fleet Corporati

president in charge of traffic and advertising manager s

members of a general advertising policy committee

With the discontinuance of coupon or inquiry type 

tising the coupon section of the advertising department was 

tinued A limited number of the personnel was transferred 

passenger and mails division of the traffic department for t

pose of maintaining stencils mailing literature etc Dur

year the personnel of the advertising department handling v

department

and maintaining reports was transferred to the coms

During the year the motion picture department was disco

arrangements having been made to have this work carried 

rectly by the passenger lines

FINANCE

During the fiscal year 1925 several changes were made 

offices under the jurisdiction of the vice president in ch

finance In July 1921 the construction department was tran

from operations and the department of investigation was 

ferred to the jurisdiction of the president of the Fleet Corp

while in February 1925 the statistical department was tran

to the general manager

The offices reporting to the vice president in charge of fin

department

the end of the

treasurer s

fiscal year

department

1925 are as

marine

follows

insurance

general comps

depa

construction department

Aside from the general supervision of the activities o

offices there are a number of matters of a financial nature wh

handled in the vice president soffice Among these are the p

tion of the annual budget the current comparison of op

results with this budget the preparation of detailed estim

the financial results of the operations of individual cargo a

senger lines and the consideration of methods of disposing 

large number of outstanding accounts and claims
146 NINTII ANNUAL REPORT UNITED STATES SIIIPPING 

Possibly the most important of these duties is the pre

the annual budget setting forth in detail the estimated 

expenditures by services and in accordance with the sev

of revenue and expenses The first budget of this kin

pared for the fiscal year 1925 and Operations for that y

results within the total loss estimated The budget fo

year 1926 was completed in June 1925 and will be th

checking each month the results of operations to dete

effect upon the balance of the appropriation available to 

erating losses during that year

There has been a considerable reduction in the personn

to the various departments which report to the vice p

charge of finance On June 30 1924 the personnel of 

partments number 733 with an annual pay roll of10067

one June 30 1925 the corresponding figures were 556 emp

a pay roll of125930

GENERAL COIPTROLLER sDEPARTMENT

Functions

The general comptroller is charged with the installatio

nance and supervision of the accounting records esse

proper reflection of the assets and liabilities and earning

penses of the corporation the audit approval and cer

of all receipts and disbursements the preparation of curre

sheets and profit andloss statements and the compilatio

statistical information as may be required

Organization

The department is now composed of the following div

offices each performing the duties specified

General comptroller sof ee supervises all activities and 

of both home and field offices prepares and issues balance 

other financial reports approves all vouchers passed fo

by the Washington office audits corporation accounts on 

managing operators assists in litigation and in the neg

settlements analyzes and adjusts subsidiary and control 

and institutes and supervises accounting and auditing proc

General auditor s office managing agents and genera

divisions and claims and construction audit section ma

books of original entry and ledgers of the corporation 

all auditing and accounting records and the details relevan

issues auditing and accounting instructions

Audits and records all repair supply stores stock ma

ministrative and miscellaneous expenses of the home offic

New York Philadelphia Baltimore Norfolk and Charles
NINTII ANNUAL REPORT UNITED STATES SKIPPING BOAR

Audits and records ship revenue and disbursements as r

by managing operators in voyage accounts and conducts 

gations and audits in connection with litigation and claims 

from construction and other contracts

Prepares stevedoring operating and other statements as re

Field Offices

Offices under the jurisdiction of the general comptroller are 

at New Orleans La San Francisco Calif Seattle Wash L

England Boston Mass New York N Y Philadelphi

Baltimore Md Norfolk Va and Portland Oregon

The personnel of the New Orleans San Francisco Seat

London offices is engaged in the audit and preparation for p

of miscellaneous charges the audit and supervision of ma

operators orin the European district subagents accounts 

audit of disbursing officers funds

The staffs of the Boston New York Philadelphia Ba

and Norfolk offices are engaged in the supervision and a

managing operators accounts andor the securing and trans

of properly certified vouchers for expenses authorized in th

spective districts to the home office for audit and payment 

audit of disbursing officers funds

The personnel at Portland performs similar duties sav

vouchers are forwarded to San Francisco for audit and pa

Joint representatives of the general comptroller and tr

are stationed at Charleston S C and Mobile Ala in con

so far as the comptroller is concerned with the supervision o

aging operators accounts

Special representatives of the general comptroller charge

the examination and audit of port expenses imprest fun

subagents accounts have been assigned to South America a

Orient with headquarters at Buenos Aires Argentina and 

P I respectively

Traveling auditors with headquarters at London Englan

and report on port and subagency charges in the United Ki

and Ireland and European and Near East ports

Changes in Organization

During the past fiscal year forces of traveling auditor

been established in the United States and the European 

and representatives stationed in South America and the Or

order that closer control might be maintained over the pro

and accounts of managing operators and that through uti

of the intimate knowledge of the propriety and reasonable

charges port customs etc available only to men in the field 

effective audit of our operating accounts might be made
148 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

The segregation of our operation auditing and acco

tivities from those of a miscellaneous nature has been acc

by a regrouping of units in Washington and has resulted in 

distribution of work and responsibility that has had m

with the general improvement which may be reported in 

dition of all accounts

The discontinuance of the accounting records formerly m

at San Francisco and London has resulted in the centraliza

accounts save those of the United States Lines at W

and has reduced personnel and other expenses

The repair and miscellaneous charges formerly handle

New York office are now audited by the personnel in Was

a considerable saving over the previous cost

Activities

In addition to supplying much data necessitating ext

search to the select committee appointed to investigate the 

Board and the Fleet Corporation and compiling many 

connection with the consolidation andor sale of services th

ment has currently complied with the routine requiremen

corporation

The activities of the newly established staff of domestic 

auditors in the audit of the accounts of managing operato

of Shipping Board property dry docks terminals et

operation of which we have a profit sharing interest an

bursing officers funds and warehouse accounts have ten

standardization of internal procedure and a rigid and cur

pliance with the regulations of the corporation that has 

proved the condition of their accounts and made possib

efficient control than could previously be maintained

The traveling auditors in the European district and t

sentatives in South America and the Orient have sup

corporation with data of inestimable value in the audit o

accounts and vessel port and agency charges

Serious attention has been given accounts applicable to o

prior to August 15 1921 and considerable progress ma

adjustment and settlement thereof Accounts covering o

subsequent to that date are maintain in current reconcili

rendered promptly and with the general accounts and r

the corporation have received such careful supervision tha

now in better condition than ever before

The accounting instructions necessary to meet the req

of the corporation in connection with the handling of shi

and disbursements in United Kingdom and European ports 

central depositories have already been promulgated an

come effective with sailings subsequent to July 1 1925
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

The reductions in personnel and salaries were greater th

been anticipated and are reflected in the following

Employees 

June 30 1 924 528 

June30 1925

993 

nen o

123 

Briefly the department has established a closer control of 

activities eliminated duplication and increased flexibility 

centralization so far as is conducive to efficiency of all accou

auditing improved the control and condition of the operat

general accounts of the corporation coordinated auditing 

counting activities so that they are now conducted more e

and with less expense than at any time in the past and kept 

of all current requirements

The following statements will be found in the appendix

1 Balance sheet as at June 30 1925

2 Cash and unrequisitioned appropriations available for 

purposes as of June 30 1925

3 Reconciliation of cash balance as of June 30 1925 as s

Treasurer scash statement with cash balance as shown b

ment of assets and liabilities as of the same date

4 Cash and unrequisitioned appropriations available for e

of United States Shipping Board as of June 30 1925

5 Gross appropriations and allotments from inception 

30 1925

G Statement of profit and loss excluding liquidation fis

1925

TItEASURER sDEPARTMENT

Functions

The treasurer of the Fleet Corporation who is also dis

officer of the United States Shipping Board is responsible 

handling of the finances and securities of the United States S

Board the United States Shipping Board Emergency Fle

poration and the United States Lines It is his duty to m

adequate records showing the financial activities of these ins

and exercise control of the cash income and outgo from the 

States Treasury and bank accounts in connection with the op

of these institutions

Organization

The financial activities of these institutions are administ

the treasurer through his home office organization distr

bursing officers and special disbursing officers located at New 
1 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

Philadelphia Baltimore Norfolk Charleston New Orle

Francisco Seattle Portland Greg Manila and London

Shortly after the beginning of the fiscal year 1925 tw

divisions comprising the surplus property department 

plant and transportation and housing divisionswere abol

the unfinished work of these offices was transferred to the 

liquidation division The latter division was transferred 

direct jurisdiction of the vice president in charge of finan

treasurer in August 1924

Personnel

During the past fiscal year in accordance with the poli

Fleet Corporation every effort has been put forth in the 

of economy of administration to reduce personnel to a m

As a result the Fleet Corporation personnel in this depa

June 30 1923 numbered 106 with an annual pay roll of 

whereas the figures for the corr sponding organization on 

1924 were 152 employees with a pay roll of 384 900

General

During the past fiscal year the methods in vogue for han

finances of the United States Shipping Board the Fleet 

tion and the United States Lines have been studied and 

have been made resulting in better protection of the fin

volved and more efficient and economical methods of admi

The New Financial Plan for the United Kingdom and Continental 

For sonic years past foreign currencies collected in fore

tries were converted into United States dollars and broug

United States and United States dollars were sent abroad 

of dollar letters of credit and converted into foreign curre

the purpose of paying ships disbursements

It was apparent that heavy lossrs were being incurred 

conversions through high exchange rates charged Furthe

large amount of capital was tied up in domestic banks as 

for the credits established to cover disbursements abroad

In order to overcome the unsatisfactory conditions existi

these arrangements a new plan was developed of setting u

depositories into which all revenue received in the vario

would be deposited in the same currencies as collected an

the moneys so deposited disbursements would be made in 

currency thus obviating the necessity for money convers

thereby eliminating exchange losses The United Pingd

Europe being an important field of activity in forei fina

the most accessible it was decided to institute a new proc

the handling of this problem first in this field
NINTII ANNUAL REPORT UNITEDtiSTATES SHIPPING BOA

The treasurer went abroad for the purpose of discussin

problems with the representatives of American banking inst

at London and after many conferences it was agreed that t

don branches of two internationally known American ban

stitutions be designated as central depositories with which w

maintain accounts for the revenue collected and disbursed 

United Kingdom and continental Europe in the currencies 

countries and that the disbursements necessary in each cou

made therefrom

The economies effected by the mew arrangements which we

for handling receipts and disbursements in the United Kingd

Europe are as follows

a Savings of approximately 170 00 per annum by the 

tion of the conversions of foreign currency into dollars an

dollars into foreign currency

b Saving of approximately 13000 by the reduction 

commission charges by the banks heretofore handling our 

credits

e The release of approximately 2500 0 from balanc

held in domestic banks to guarantee payment of drafts draw

letters of credit for our account making said sum available fo

tion needs

d The increase of onehalf of 1 per cent per annum in 

of interest paid to the Fleet Corporation on guarantee depos

e The elimination of practically all cable and telegra

pense

f The elimination of all turnover charges and charges 

ing correspondence

g The assumption of the banks handling our foreign 

in the United Kingdom and Europe of all liability for sa

security of various currencies deposited in those banks or th

respondent banks

h The receipts and disbursements in the United Kingd

Europe will be handled at London thereby reducing the le

time credits will be open consequently reducing the avera

standing liabilities of the Fleet Corporation on letters of cred

as reducing transit time of revenue collected in the United K

and Europe between the time of collection of the revenue 

time of its deposit to the credit of our accounts which bear 

This neiv plan was made effective throughout the United 

dom and Europe on July 1 1923 and it is intended to se

same system during the fiscal year 1926 in all other foreign c

where American vessels operate
152 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

Subagency Accounts

At the beginning of the fiscal year 1925 all advances 

Corporation funds made by managing operators to other 

operators acting as their subagents and branch houses of 

operators for account of ships disbursements and all re

lected by such managing operators and branch houses were 

in the private accounts of the respective managing op

branch houses and interest accrued on these funds to the cr

managing operator or branch house as the case might hav

Under date of November 10 1924 this office instituted 

dure whereby all Fleet Corporation moneys received by 

operators acting as subagents of other managing oper

branch houses as advances or revenues would be deposi

account in the name of the United States Shipping Boa

gency Fleet Corporation which account draws interest a

of 21 per cent per annum calculated on the average daily 

Since the establishment of this procedure there bare been 

subagency accounts 49 of which are in active status The F

poration has realized the sum of 11844 68as interest on 

counts since their establishment in November 1924

Cash Discount

During the past fiscal year the treasurer has put forth ev

to take advantage of the discount privilege on all paymen

that privilege could be obtained and as a result of continuo

in this direction the sum of 141 214 59cash discount was e

the fiscal year 1925 Notwithstanding the total disbursem

ing the past fiscal year were much less than the total disbu

for the preceding year the earnings on cash discounts were 

excess of such earnings for the previous year

Consolidated Cash Statement

A consolidated cash statement summarizing the financia

ties of the United States Shipping Board and the Fleet Co

during the fiscal year 1925 will be found in the appendix

Executive Division

The executive division of the treasurer sdepartment ha

receipts and disbursements of the United States Shipping Bo

the Fleet Corporation at the home office and maintains all the 

and books in connection with home office and district cash a

including United States Treasury accounts as well as com

bank accounts This division also prepares reports and sta

as required maintains supervision over the activities of the 

disbursing offices issues transportation requests to the Secre

distribution and maintains files of paid vouchers remittanc

fests and correspondence
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

During the past fiscal year the executive division hand

disbursements of38110 606 49and receipts totaling 245886

both figures being exclusive of transfers from one fund to 

These transactions affected the many treasury and bank 

maintained by the treasurer of which on June 30 1925 th

138 Of these 17 were accounts in the United States Trea

121 were in commercial banking institutions These fig

exclusive of the subagency accounts which have been opene

the past fiscal year of which on June 30 1925 there were 

the accounts of the United States Lines of which there 

at the same date

During the fiscal year all cash accounts held outside of the 

States Treasury which were not essential in connection 

operating activities of the Fleet Corporation were closed an

amounting to 3611 727 09 were transferred to the Unite

Treasury

A complete survey and check of all the commercial bank 

of the Fleet Corporation was accomplished and correction

establishing uniformity of titles for these accounts and 

proper designation of authority to sign checks in accordan

our present organization Unsatisfactory conditions whi

found to exist have been corrected and a system has been 

and installed whereby constant check is made of the tit

authorized signatures on all bank accounts of the Fleet Corp

The total amount collected during the past fiscal year for 

earned on funds of the Fleet Corporation deposited in the 

depositories both domestic and foreign and including su

accounts and United States Lines accounts was 380 623 83

Collection Division

In January 1925 the deferred liquidation division and 

lection division of the treasurer sdepartment were consolida

one division designated as the collection division The d

the collection division are as follows

a Collection of all current and active accounts receivabl

b Negotiations for settlement of miscellaneous inactive a

receivable comprising a large number of old and involved a

requiring investigation and adjustment

c Custody and disposition of certain surplus materials 

and transportation and housing projects formerly handled 

surplus property department and clearing of the accounts 

nection therewith

d Maintenance of the records of the former materia

plant and transportation and housing divisions and fur

therefrom information and data required by other departm
I54 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

Considerable progress has been made during the past f

in the collection settlement or adjustment of inactive 

accounts There were closed on the receivable books ove

counts totaling approximately43000and in addition 

sion has been instrumental in effecting final disposition o

accounts and securities of approximately 26000 It 

that during the fiscal year 1926 with the exception of ac

litigation the division sactivities will be confined to cu

counts Statement showing the accomplishment for the f

will be found in the appendix

Surplus Material

At the beginning of the fiscal year there was on hand 

posed of surplus material at seven different locations th

the country Of this number four projects have been c

closed during the year namely Downey Shipbuilding C

Island N Y Meacham Babcock Co Seattle Wash Joh

Corporation New York City and Groton Iron Works Noa

Plants at which surplus material still remains to be dis

are Pensacola Shipbuilding Co Pensacola Fla Hog Isla

ware County Pa and Skinner Eddy Corporation Seatt

Plants

Hog Island Delaware County Pa and the Federa

Railway Co property on Hutchinson Island near Savan

are the only remaining properties not disposed of by th

plant division Hog Island is to be offered for sale by se

to be received up to October 1 1925

In September 1924 the Federal Marine Railway Co 

was sold by the United States marshal in execution of j

in the amount of 131 91 05held by the United States T

erty including real estate machinery and equipment wa

by the board at the price of9600 This division was char

the duty of obtaining a buyer for the property and afte

months effort two bids were received and submitted to th

The acceptance of the higher bid was approved conditio

the board and the matter was still unsettled at the end of 

year

Housing

At the end of the fiscal year 1924 all of the housing p

acquired or constructed by the Fleet Corporation pursuan

act of March 1 1918 had been sold and conveyed with the e

of 12 houses in Camden N J 2 lots in Brooklawn N 

4 houses in Philadelphia all of which were under con

sale but not conveyed because of legal and other obs
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

the transfers and various utilities park spaces etc in cer

the projects which the board had obligated itself to con

the municipalities in which the projects were located

These utilities etc consisted of sewerage system inc

sewage disposal plant water system bridge public square

park spaces at Fairview Camden N J sewerage system inc

sewage disposal plant water system streets and alleys 

public squares and park spaces at Broollawn Camden C

N J and sewerage and water systems and public squares an

spaces at Atlantic Heights Portsmouth N H

During the year 3 of the 4 houses in the city of Philadephi

conveyed to their purchasers but the 12 houses at Camden 

the 2 lots at Broollawn N J and the utilities listed 

remained unconveyed at the end of the year

In March 1925 the board obtained in the settlement w

Atlantic Corporation an absolute assignment of the total 

and outstanding capital stock of the Atlantic Heights Co 

owner of the housing project at Portsmouth N H on wh

board held a mortgage of1750 00 Haring thus acquire

plete control of the property the board directed that it be d

of at public auction the dates of sale being subsequently fi

June 30 1925 and July 1 1925

The entire issued and outstanding capital stock of the fol

corporations which were organized in various States for the p

of holding title to housing projects located therein is h

the board

Dfooreland Realty Co of Bath Bath Die

Atlantic Heights Co Portsmouth 

Groton Park Real Estate Co Groton Co

Fairview Realty Co Camden N 

Noreg RealtyCo Brooklawn 

Chester Emergency Housing Corporation Chester P

Liberty Land Co Wilmingto

Liberty Housing Co Dundalk M

Federal Home Building Co Lorain Oh

Wyandotte HomeCo Wyandotte 

With a few exceptions the officers and directors of these co

tions are members of the treasurer sdepartment

The purposes for which these corporations were organized 

been accomplished the necessary proceedings for their diss

have been begun

Transportation

There remained unsettled at the close of the fiscal year the f

ing contracts covering the extension or improvement of pas

67677 x11
156 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

transportation facilities in connection with various sh

plants

San Diego Electric Railway Co San D

Lewiston Augusta Waterville Street Railway Co Batt 

Metropolitan Park Commission Bosto

The settlement of the firstnamed coutciact is in the ha

legal department the others are being handled by the div

prospects of settlement early in the new fiscal year

Securities Division

The securities division which is the custodian of all sec

valuable papers handles the collection of all current matu

securities and other similar obligations and keeps record

mortgages bonds contracts and agreements from which i

other departments photostat copies of necessary inform

their use

During the year collections on receivables amounted to 784

as principal of which 4533 129 00 was cash and 287688

new paper in the form of renewals New paper placed f

aggregated 281041822 which includes the decree of th

American fixed Claims Commission of 16500 0 Se

the face value of416790 64 were surrendered as 

and directed by board resolutions and securities a

33588 959 61 were eliminated from the active records

Insurance Department

The insurance department handles all activities in 

with the various classes of insurance and bonds required 

those assigned to the marine insurance department and t

States Protection Indemnity Agency as well as review

tracts leases and agreements in order to determine that 

ests of the corporation or board are properly protected b

essary insurance All losses and claims arising are handl

department in conjunction with the brokers underwriters 

ing companies

Fire automobile burglary and similar insurance ma

handled by this department throughout the year but it wa

June 1925 that the employer sliability public liability 

men scompensation covering stevedore risks were transfe

the marine insurance department to this department

In line with a decision of the board of trustees masters a

of all vessels operated by the Fleet Corporation and frei

assistant freight clerks storekeepers baggage clerks stew

keepers and chief stewards on all passenger vessels hav

cluded under the Emergency Fleet Corporation schedu
NINIII ANNUAL REPORT UNITED STATES SHIPPING BOA

bond This brought the total number of persons covered u

bond as of June 30 1925 to 540 A schedule fidelity bond o

form has been executed covering 245 employees of the Unite

Lines

Credit Department

There was an increase in the activities of the credit de

clue to a closer supervision of the business of the corpora

a more consistent application of commercial methods in tra

business necessitating M investigations of firms corp

stocks bonds securities etc

Field Offices

New Fort districtThe district disbursing office at N

is responsible for the handling of the finances of the Fleet 

tion in the North Atlantic district which includes the port

York and Boston This office through its staff of special d

officers handles all receipts and disbursements in connec

the managing operators in this district This office also 

semimonthly the wages of the crews of the three groups o

ships in that district and semimonthly pay rolls of Fleet Co

employees as well as handles the district administrative 

ments and miscellaneous receipts

The foreigncredit department of this office establishes th

credits for ships disbursements on vessels operated by 

operators in New fork Boston Baltimore and Charle

handles drafts supported by voyage accounts drawn th

The foreign credit department of the New Orleans office w

tinued as of July 1 195 and the foreign credits to be e

on account of vessels olcrated be managing operators in 

Orleans district subsequent to July 1 1925 will be e

through the New fork district forci ncredit department

The activities of this department will gradually decreas

the next fiscal year by reason of the institution of the new 

the handling of the finances of the Fleet Corporation in ti

Kinrdom and continental IEurope previously outlined

New Or7ean8 districtThe district disbursing office at 

leans is responsible for the handling of the finances of 

Corporation in the Gulf district which includes the port

Orleans Galveston Houston and Mobile This office th

staff of special disbursing officers handles all receipts and 

ments in connection with the managing operators in thi

and disburses semimonthly the gages of the crews of th

vessels in this district handles the district administrative 

ments and miscellaneous receipts
158 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

During the past fiscal year the special disbursing office

at Galveston Tea who handled the disbursements in c

with the managing operators at Galveston and Houston 

transferred to New Orleans as the managing operators 

heretofore active at these two cities have combined due to c

tions and have moved their consolidated headquarters 

Orleans

With the institution of the new plan for the handling o

in the United Kingdom and Europe effective July 1 

requests for foreign credits emanating from managing ope

the New Orleans district other than those covered under 

financial plan will be established through the New Yor

office and the foreign credit department of the New Orle

will be abolished as soon as the credits which were outsta

of June 30 1925 have expired and all drafts drawn ther

been paid

San Francisco districtThe district disbursing office at S

cisco is responsible for the handling of the finances of the F

poration for the Pacific coast district which includes the 

San Francisco and Portland and up to March 1 1925 inc

attle On this date a separate district was created with hea

at Seattle

The district disbursing office at San Francisco through 

of special disbursing officers handles all receipts and disbu

in connection with managing operators in this district an

the district administrative disbursements and collections

The foreign credit department of this office establishe

credits for ships disbursements abroad and handles dr

ported by voyage accounts drawn thereon While the ac

this department are not affected by the new financial plan w

been instituted for the handling of our finances in the Unit

dom and Europe it is anticipated that this new system w

stalled in the countries which are touched by vessels opera

the Pacific coast during the fiscal year 1926 The foreign 

partment at San Francisco continues to establish foreig

on account of vessels operated by the Admiral Oriental Li

is now under the jurisdiction of our Seattle office

Seattle dada ctAtthe beginning of the fiscal year 1925 

Pacific district disbursing office of the treasurer sdepartm

sisted of a special disbursing officer and one assistant u

supervision of a special disbursing officer of the Fleet Corp

San Francisco The duties of this office were to handle the re

disbursements in connection with the Admiral Oriental Line 

an operating account established at Seattle for that purpo

handle through an impressed fund the payment of Fleet Co
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

vouchers carrying the cash discount privilege covering suppl

chased in that district

Upon considering the unnecessary duplication of work an

incident to reporting through the San Francisco office the 

disbursing office was made a separate district as of March 

reporting directly to the home office The impressed fund f

maintained at Seattle was discontinued and a disbursing ac

the United States Treasury was established for the disbursem

the administrative expenses of the Fleet Corporation in that 

Philadelphia districtThe district disbursing of at P

phia is responsible for the disbursing of payrolls of the laid

at Hog Island and the collection of rentals in connection w

housinn projects in the Philadelphia district as a result of 

of surplus property

Norfolk dishgct The Norfolk district disbursing office is 

sible for the disbursements of the pay rolls of the James Riv

up ships and other miscellaneous petty cash disbursements 

district and the collection of miscellaneous accounts receivab

result of the sale of surplus material

The operations of the Norfolk district disbursing office du

past fiscal year have been conducted along lines practically 

with those followed the previous year

London districtThe district disbursing office at Londo

sponsible for the handling of miscellaneous accounts receiva

eral administration expenses and fuel and repair accounts 

for vessels of the Fleet Corporation in the United Kingdom 

and Africa and the disbursements of ships passing through 

Canal All other ships disbursements and all freight reve

account of operations of vessels under managing operators c

ports under the jurisdiction of the London office were han

disbursing of cers in New York and New Orleans through 

banks in the United States

Under the new financial procedure covering the handling 

of the Fleet Corporation in the United Kingdom co

Europe and Africa effective July 1 1925 the establishme

letters of credit and the handling of all drafts drawn the

covering ships disbursements of vessels operated to ports 

United Kingdom continental Europe and Africa as we

revenues collected in those ports will be the duty of the Lon

trict disbursing office

The centering of this new financial plan in the London di

office will materially increase the duties of that office but 

offset by a greater decrease in personnel and duties in the 

offices in the United States
160 NINTH ANNUM REPORT UNITED STATES SHIPPING BO

Monila districtThe Manila disbursing office is respon

the handling of the general administration expenses and m

cus accounts receivable of the Fleet Corporation in the Or

During the past fiscal year the revolving funds of ou

agents throughout the Orient which were established and 

direct from the home office were closed They were replac

volving funds under the jurisdiction of the disbursing 

Manila

There were no other changes made in the method of ope

the Manila disbursing office during the past fiscal year a

has been carried on in the same manner as in prior fiscal ye

United States LinesAt the beginning of the fiscal year 

personnel of the financial division of the United States L

sisted of a number of employees under the jurisdiction of 

eral manager of the United States Lines and in addition t

assigned to the United States Lines a special disbursing off

the staff of special disbursing officers New York distri

special disbursing officer had the supervision of the financia

of the United States Lines and reported direct to the trea

the Fleet Corporation

The financial division of the United States Lines at t

handled all the receipts and disbursements in connection w

activities in the United States and handled in part their fin

This plan of organization with the special disbursin

repoating direct to the treasurer of the Fleet Corporation bu

supervision of employees under the jurisdiction of the gene

a cr of the United States Lines was not deemed satisfact

effectile dune 10 1925 file financial and accountinnr proc

the United States Lines were made to conform to the pract

vailing in connection with all managing operators A sp

bursing officer from the staff of the New York office was 

to the United States Lines to handle the receipts and disbu

through operating accounts in the same manner as receipts 

bursements are handled for all managing operators The 

of the financial division of the United States Lines was p

the jurisdiction of a general cashier wile reports direc

general manager of the United States Lines and is rospo

him This change in the organization and the new proce

scribed are expected to eliminate the confusion which ex

The method of handling the foreign finances of the Unit

Lines has also been revised in line with the systeci w

recently been installed in connection with file foreiga unanc

Fleet Corporation in the United hingdom continental Eu

Africa which procedure will become effective in London a

on August 1 1D2 5 and in I3reulen 1ermany on Septembe
NINTII ANNUAL REPORT UNITED STATES SHIPPING ROAR

Under this new plan all foreign currency revenues of the 

States Lines are made interchangeable with and available 

Fleet Corporation and vice versa as the needs of either may 

The purpose of this arrangement is to avoid the exchange c

currency conversions

MAncN INSURA NcF DEPARTMENT

The marine insurance department during the fiscal year 192

as marine underwriters for all vessels of the Fleet Corpora

operation and handled marine insurance questions arising 

nection with vessels sold or arising through other activities 

corporation as well as such insurance matters arising in con

with the construction loan fund as have been referred to th

Corporation by the Shipping Board During most of th

year this department also handled stevedores compensati

public liability policies and other matters of this nature bu

latter part of June 1925 the handling of these matters was 

ferred to the treasurer sdepartment

The department was divided into a number of sections 

duties may be briefly outlined as follows

Three of the sections were similar in organization and h

all claims against the Fleet Corporation covered by the f

hull policy in use and they also handled claims of a marine 

ance nature in favor of the Fleet Corporation

Another section was charged with the duty of examining 

surance submitted by those who purchased steamers from th

ping Board on a part payment plan This included rene

well as new insurance It also received requests from pur

that the Shipping Board waive its interest in claims whic

had against their commercial underwriters and acted on th

quests after obtaining the consent of the proper officials

A fifth section during most of the year examined and passe

the stevedore compensation and public liability policies a

by the Fleet Corporation as well as all other policies of this 

until the transfer of these matters to the treasurer sdepartm

already mentioned It kept the books and tabulated the rec

the department notifying other departments of new losses 

as the settlement of those which were reported previously

During the last fiscal year this department has handled to 

clusion

5

384 claims against the Fleet Corporation amoun

250 00 through payments of171175 and 393 claims in 

of the corporation amounting to 43250 00 for 142 228 

claims have arisen to the number of 217 against the Flee

poration while 209 in favor of the corporation have had their 
162 NINTH ANNUAL REPORT UNITED STATES SHIPPING BO

during the year Some of these have been settled and ar

in the above figures while others remain open Insurance 

examined and approved on steamers sold on a partpayme

the amount of 110 00 which includes renewals as w

insurance The Shipping Board has waived through th

ment its interest in 176 claims which the purchasers ha

their commercial underwriters in an amount of124839 

addition to handling these claims 164 condition surve

which were drawn up by the United States Salvage Associ

been examined and followed up with the operators to se

recommendations to improve the cargocarrying qualitie

steamers have been carried out

Only one total loss has occurred during the year nam

S Nest Ilesseltine which stranded on the Cape Verde I

June 26 1925

CONSTRUCTION DEPART

During the fiscal year 1925 the construction department 

its work of investigating claims arising out of the constru

gram and collecting data required by the legal departme

in connection with claims law suits or other purposes Th

are described in the annual report for the fiscal year 1924

SHIP SALES DEPARTMENT

OrganisationThe department of ship sales consists o

1 The administrative office having cognizance of ne

for the sale of vessel property the activities of which a

in the Washington office

2 The laid up fleet division which is charged with th

the preservation and maintenance of laidup vessels not 

administrative planning and supervisory capacity but i

cuting of the actual physical work thus involved and th

ment of personnel on the laidup fleets This division op

der its administrative and supervisory general headquart

Washington office in charge of the manager of ship sales 

forms the duties of caring for the laidup fleets throug

managers and fleet organizations at the respective points o

Changes in organizationDuring the year the depa

ship sales proper reduced its Washington office personnel 

14 employees and its annual payrolls from 56600 to 452

27 per cent The general headquarters of the laidup fle

at Washington reduced its personnel from 7 to 6 employe

annual pay roll from 18060 to 14520 about 20 per ce

pay roll changes were made in harmony with the genera
NINTH ANNUAL REPORT UNITED STATES SHIPPING ROA

plan of the Fleet Corporation under its program for min

personnel and pay rolls

The personnel and payroll requirements of the laidup f

fered additional opportunity to institute economies in these 

of which full advantage was taken as will be noted in the 

of the laidup fleet division

In respect of the scope of its duties and responsibilities 

partment underwent several important changes On August 

the department had transferred to it the custody and sale 

docks formerly a separate activity of the Fleet Corporation

On February 15 1925 the department had transferred t

caretaking and supervision of the Hog Island plant propert

erly under the department of purchases and supplies No ad

personnel were engaged for this duty the skeleton orga

guarding the property being placed under the local jurisdic

of the district manager of the laidup fleet division at Hog 

the fleet of about 100 vessels moored at that point constitu

principal activity of the corporation at this plant

The department of ship sales proper underwent no ch

organization plan during the year and continued to func

during the preceding year

Ship Sales

Review of activitieaDealing with sales activities the po

continued of negotiating sales on a private competitive b

authorized by law The department negotiated and prepa

consideration and decision of the board all sales of ships ex

sales of lines upon a guaranteed service basis in which c

Shipping Board conducted the negotiations

The entire fleet was readvertised for sale on a private com

basis in pursuance of the requirements of law in Februa

This advertisement was published as a means of giving clu

periodically that the vessels of the board are for sale and als

to acquaint prospective buyers with the principal terms and 

tions laid down as a matter of policy for sales by the board

No mariced improvement in the sales of vessels was noted 

the year depressed shipping conditions forbidding the sale 

to prospective owners excepting for replacement and oio

expansion As will be noted from the report of the preced

the total number of vessels unsold July 1 1924 was 1294 and 

of tonnage was 5907 326 dead weight Sales during the pa

reduced the number of ships to 1231 and the volume of ton

8547 459 a net reduction of 63 ships and 359 867 dead weig

Actual sales during the year included 48 steel ships of variou

total tonnage 302 00 and 10 wooden and concrete vessels to

nage 37000 Transfers to other governmental agencies and 

676772312
164 NINTH ANNUAL REPORT UNITED STATES SHIPPING H

additions to the fleet such as launches comprise the balan

contribute to the net reduction of the fleet

The following tables reflect the names and types of ve

nage and selling price and names of buyers classified acc

the conditions under which sales were made

Ships sold during fiscal year 1925

Dead Gross Name weight tannage gales pnee Pmcbaser

tonnage

d cargo sbips

5 34296 1 323 

Hiroo 4755 2873 74920 00 A H Boll Steamship C

Eastern Gale 6 F11 4 Flag 145 MW Booth Fisheries Co

Iieonawa 11724 7592 329 MW Columbia Pacific Steam

Lake Como 2875 2018 3330 Ed Robert Badcock Co

Lake Farmingdale 4155 2642 60000 W CadwalladerGibson Lu

Lake Faulk 4155 2598 40 01M Do

Lake Fielding 4000 2571 52648 89 RwiHg Hang wing

Lake Gadsden 45 2 6491 71 IXI 1W Lykes Brothers steams

Lake Harmhus 4230 2686 33 W W E1du Pont de Nemo

Lake Markham 2899 1008 25 M Ed E M Graves

Lake Ogden 2875 2013 26505 00 Atlantic Caribbean 

President Iinenln pas 11364 1087 1 125 RAM

tion Co Ltd

Lake Savus 4225 2689 57 RM W Clyde Steamship Co

M J Scanlon 8597 5602 975410 00 Hammond Lumber Co

Wen Katan 8541 566 227 0000 Frank C Hill

Total 73887 48286 12732389

d tankers

11312 1427 1 125 000 W Do

BurnweR 59811 5771 fit WO W Alpha Steamshipp Corp

Avondala 89741 5731 47590 66 MS Tracy LTo

Hisko

Overbrook

8980

8974 5724

561135 45920 5060 Ono W American Walker Tankers Daly Cor

Phoenia 8074 5731 53126 04 Do

gilverbr 8961 584 55WW Mountain Oil Refinin

Total 5 34296 1 323 

IN 171111

Steel OaaOgning togs

Barwick oil burner George IL Crofton

Moosltauka cool burner 419 45 080 W Matson Navigation Co

Hakey coal burner 429 44 1WW Atchison Topeka Sa

Tagus coal burner 429 45080 W OBrien Bros Ie

Total 171 19

SALES WITH SPECIAL

Flaalisn

Steel ships sold for restricted

operation in designated

tradePresident route Cleveland 11211 14 IV 1 125 O00 W Dollar Steamship Line President Passenger Iinenln pas 11364 1087 1 125 RAM Do

President scnger Pierce passen 12077 1423 1 125 0000 Do

Pn tlent Taft fassen 12044 H 123 125 0000 Do

ifPresident Rilson Pas 11312 1427 1 125 000 W Do

Sengcr

Total 58011 70683 5 025 go 00

Steel ships Sold for change of

motive power

ethclndge tanker re 10254 7366 203 1120 00 Clifford D Mallory

etprecating OnfimeS

BelSCrtun tmkra re 10254 7360 300 00 Frank W Seth

cipronatirig engines

East Indian cargo tl 879 8 229 81 753 00 Ford Df utor Co

lfiskianzn Diesel tanker 9 9n 6 910 150 0000 Gulf Refining Co

Tnlsag lsDicaol tanker cecip t0 25o 7245 3to OW 00 ASSeelated Oil Co

resting engines

Total 52408 37 116 j1 135373 00
NIN IAFCAI REPORT UNIPED 6LiTES SHIPPISG BO

Ships sold dvi in fiscal year I92dGntinue l

IQam I Dead I Gross weight tonnage Sales price I

Purehacr

tO ge I

SAF6 WITL SPECIAL TRO

C191ON9continued

eel ships sold with oblige

flan to perform speei0ed

alterationihctV nnnts

Barthoiemow corg0 4 155 2 z91 A2 Ofo 0 Eastern Steamship Lines 

Lake Ellicott cargo I 42x1 2 674 M WOM Gult Southern Steroi

Lake KM go 42611 2676 25010 AJallory 5lenmship Co

Lake F9riste Icargo 415 2624 25 00 Sang Steamship Corpor

Lake Flanders cargo 4145 2600 25 0q 00 Mallory Steamship Co

Lake Flovilla saga 4 165 2 592 25 non 00 Queen Steamship m Corpo

Lake Florae ito cargo 4145 1 2 cut 25 Of10 00 Eastern Steamship Lines 

Lake Flavanna cargo 3525i fff 2340 25 W0 0 Baltimore Carolina St

Lake Fresco ergo 4165I 2622 2600 i 3nek Steamship COgrora

Imke Frohva cerKO I 4 165 2616 25 GOO 01 Ace Steamship Corpornt

Lake Felden cargo 4 1s5 502 2 OHIO M Milton C Jackson Lake Gelera ergo I3525 2316 25 010W Italtilnore Carolina St

Lake Geveca atrgo 29 1908 ON pl I lnim Steamship COrpo

m

President Arthur ex 105 10421 60 000 W 4 mcriean 1alcstil cLine 

enemy passevgrr

1otnl I 62321 I 432 355 WA7

N11SCFILANF0L9

Concrete vessels for station

arAtLnatus cargo

Palo Alto tanker

3000

750 01441

2 391

1A

3050

70 M1

IfOlicer P Etheridpe Inc

J Olsnnk CO

Per dt9 tanker 7 fi00 ti 149 160000 Pera0 PortlSad Cemen

San Paiqual hanker 7 Lou 6416 16 Gain 00 Old I ang Alolasses Cc

Total 25 WO 2 75 0

Wooden ships sold for scrap

pingAshburn 4 W 2749

Blloei

Balosaro 3 500 1 2 40D 6200 W A Ilamlon

3870 3091 1

Total 11 S 2J 1 6 200 0

OtherCnporka craft 1 NJ 500 00 P J Dericus

Drt W0 F R Ross

Mary Prisrillx 4 J t 350 IV C Bai

Total 77500

Try dock e I p 500N1 00 Todd Shipysrds Corpora

DISPOSITION OF VESSELS OTHER TIIAIP BY SALE

Transferred to Government

drprrtnleuts

Latham I Mal 0 28 Warar Depiu meat

A4ullitL 7500 6144

Active l

1

Diligentr Navy Dcpartmcnt

Total 500 I 18917 L

1 Buyer obllgated to recondition vessel to erient necessary to entitle her Io United State

inspection certificate and rae sficatiou in Arucricaa Buron of Sbippiug I Wooden ship hull

r 31tout Wooden launch

Oh9olcte or celen motor beat

I 100t0 ton5 pnntopn wooden construction

4 Concrete tankers

I 100 foot woodeq harbor tugs
166 NINTH ANNUAL REPORT UNITED SLATES SHIPPING BO

It will be observed that aside from lakebuilt ships com

few cargo vessels were sold Six steel tankers of odd desi

emergency construction for which there had been no de

purchasers were sold at prices which attracted buyers an

the disposal of all of that type at necessarily low prices b

in excess of their junk value One large cargo vessel and 

tanker were sold at concessions from the normal prices of s

in consideration of the buyers obligating themselves to co

ships to Diesel propulsion a policy adopted by the boar

years ago as a means of cncouraYing the development in th

States of this modern method of propulsion Under simi

of contract by which the buyers were afforded concessi

basic sales prices three large tankers were sold for insta

improved type of steam propulsion Thirteen lakebuilt s

thus sold to buyers who undertook to render them of more 

tive design by major hull alterations without which the sh

not have proved suitable In this manner important additi

made to the American coastwise shipping trade A large 

passenger and cargo vessel withdrawn from the United Sta

clue to the necessity of extensive overhauling was sold u

policy at a low price was commissioned as agreed and 

regular service with Mediterranean ports thereby increasin

can flag foreign operations

The concrete ships remaining from the emergency con

program were finally disposed of three tankers of this ty

sold for storage use three transferred to the Federal Barge 

the same purpose and a concrete cargo ship being sold 

mantling as were the three remaining wooden ships which 

withheld from sale with the wooden fleet due to pending liti

There was continued in effect the valuation of all vesse

fleet based on the appraisement made the preceding year in 

tion with a physical survey Individual prices calculated a

to the type design and physical condition of each ship ar

in an inventory of vessel property on the books and monthly 

in such prices are submitted to the board for approval to 

a proper system of appraisal and to afford a correct mont

ment of the asset value of the fleet Such changes are o

by improvements to vessels repairs required on vessels ent

up equipment removed from inactive ships for the use of ac

and kindred causes

In August 1924 the Shipping Board authorized the writi

depreciation at the rate of 5 per cent per annum prog

effective semiannually a business like practice designed to 

sate for the accumulating age of the vessels
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOA

The prices of ships carried on the books of the board a

which the department is authorized to quote to prospective 

but when in the opinion of the board the circumstances j

variation from such prices vessels are sold at lower figures a

pective buyers are at all times encouraged to submit bids T

liberal terms quoted in the last annual report were conti

effect and in September 1024 the board authorized the grant

2 per cent discount when the entire purchase price is paid in 

vessels which might otherwise be purchased on the deferr

ment plan This discount permits of an equalization betwe

bu who are enabled to pay cash and those who elect defer

merits and the inducement to pay cash not infrequently ov

the necesity for preparing notes and mortgages which are 

in deferred payment sales A credit report is obtained f

treasurer before granting any deferred payments and in 

several vears there have been no cases where losses have 

curred by virtue of granting credit to approved buyers

One of the largest elements in the board sfleet consists 

group of about 300 lakebuilt vessels These ships were 

Great Lakes yards to maximum Welland Canal dimensions fo

service They range in tonnage from 2500 to 4300 tons th

ence being represented by added depth For several years th

sels regardless of size were offered for sale at a flat price of 

each and a fair number of them were sold at that figure A 

of important coastwise lines were established and expanded 

the ability to acquire these small ships at low prices but in du

the demand for them was abated In the spring of 102 7 th

undertook to encourage the purchase of these vessels on a broa

even to the extent of companies anticipating future requir

and with this end in view the price was reduced to a basis of 

each less the cost of reconditioning for service as shown b

Corporation estimates This campaign was fairly produ

total of 1S lake built ships being sold thereunder to compan

were especially attracted by the exceptionally low prices

The sale by the Shipping Board of the five President typ

bination passenger and cargo vessels to Dollar Steamship 

April 1025 in conjunction with an obligation for the main

of CaliforniaOrient Line berth service for a period of five 

marked the only activity of the year in respect of the sale 

nage for such guaranteed service and incidentally marked 

posal of the first of the most important berth services esta

by the board

Reference was made in the 1024 report to the possibility 

tering upon a campaign for the sale of certain vessels to 

While no definite activity along these lines occurred during t
168 NINTH ANNUAL REPORT UNITED STATES SHIPPI G B

year yet at the end of the year the board adopted a pol

down certain principles for the sale of any vessels to 

directing that steps be taken to endeavor to develop sales o

number of vessels selection of which will be made t

buyers It is thought that activity in this connection m

in the sale of a number of ships

Toward the close of the fiscal year the board decided to 

for sale 200 vessels for dismantling and scrapping and th

of this effort doubtless will suggest the course to be follow

disposal of a large volume of laidup tonnage

Dry Docks

When the department assumed custody and caretakin

docks not under sale or lease agreement there were two suc

one 10000 ton fivepontoon wooden dock laid up in N

and one 6000ton five pontoon wooden dock laid up at Jac

Fla Efforts were made to develop purchasers of these do

particularly the one at Jacksonville In the summer of 

interests at Jacksonville having the support of the 

authorities there entered into an agreement to purchase 

on the deferred payment plan agreeing to thoroughly re

the clock Under this agreement the municipal authoritie

the Government from a very substantial claim for accrued 

charges on city waterfront property The purchasers e

to consummate the transaction but were unable to obtain 

cial support which had been promised with the consequ

toward the end of the fiscal year it became necessary to rep

dock While this course was not desirable it could not be 

and although the effort for disposal of the dock failed the 

tion resulted in the release of the claim by the city of Jac

Immediately following repossession negotiations were 

with other prospective buyers which it is believed will res

successful sale of the dock on a cash basis

The 10000ton dock at new York similarly requiring 

rebuilding and overhauling proved difficult in which to 

prospective buyers It became evident after a thoroug

of the market that the full value of the dock could not be 

An opportunity developed to dispose of the dock to respons

ests who desired to expand the facilities in the Gulfa 

course for shipping interests in general and particularly 

Fleet Corporationand the dock was accordingly sold at a 

uation but for cash

Laidup Fleet Division

With respect to the laid up fleets the policies and metho

were summarized in last year sreport were in general 

during the fiscal year 1926
NINTH ANNUAL REPORT UNITED STATES SHIPPING LOAR

The field forces of this division are divided into five dis

follows New York Hog Island James River Gulf and 

coast the respective points of layup being as follows

New York Caldwell fleet at Caldwell N Y 40 miles 

Hudson River from New York City Ships are moored 

group along the west shore of the river

Staten Island fleet at Staten Island N Y in the Arthu

Ships are moored in three groups of approximately 40 ships 

Hog IslandSeventyfive per cent of the ships are m

piers and the remainder are anchored abreast in a basin fo

the Delaware River by a stone dike

Janes RiverAt Norfolk Va the passenger ships Mo

non Agamemnon and President Fi more are moored to th

base piers

At Fort Eustis Va 16 miles up the James River from 

News approximately 400 ships are anchored in 25 units of 

ships abreast for a distance of 5 miles up and down the r

Gulf district Mobile fleet at klobile Ala 13 miles up 

bile River Ships are moored along river bank

New Orleans fleet at New Orleans La within the city 

miles up Mississippi River from Canal Street Ships are 

in the stream

Orange fleet at Orange Tex 37 miles up the Sabine Riv

the Gulf Ships are moored along river bank

Pacific district Southampton Bay fleet at Benicia Cali

anchored along shore line

Seattle fleet at Seattle Nash Ships are anchored in Lak

Portland fleet at Portland Oreg Two ships only m

United States Shipping Board and Emergency Fleet Co

concentration yard pier

The former layup points at Boston Mass and Pensac

were abandoned during the year and the ships moved to othe

Each district presents its peculiar advantages or disadvan

layup points for idle ships and it has accordingly been n

to treat each in some respects as it separate organization 

stance the Caldwell fleet up to the Hudson River is frozen i

the winter which necessitates provisioning the fleet in th

last for several months Also ships can not be moved to a

this fleet during the winter months on account of ice In 

district it has been found impracticable to house the me

fleets during the summer months due to the extreme beat 

mosquito pest At Hon Island most of the ships are m

piers thus making the care of the ships much simpler th

moored in the stream as at other points of layup The 

the James River fleet which is about 5 miles presents ma
170 NINTII ANNUAL REPORT UNITED STATES SHIPPING BO

lems in the care of the 400 ships moored there especially t

of moorings and an effective watch service to prevent pilfe

During the first quarter of the fiscal year it was found 

to temporarily augment the field personnel in order to expe

needed preservation work at several of the fleets Later 

sonnel was reduced until at the close of the fiscal year the m

force employed during the year had been reduced 12 per c

personnel of all districts was reorganized during the latte

the year and is now on a sound operating schedule wit

authorization of 1913 men 12 per cent of which are offic

total number of men employed at any one time is about 10 

less than the authorized total

The welfare of the personnel at each fleet with special 

to the care of sick and injured housing facilities qualit

sistence recreational features shore leave and other c

which build up the morale of the crews has the careful con

of each district manager at all times The labor turnov

high with the possible exception of that at the New Yo

where a shifting type of personnel is all the labor marke

making a turnover of 14 per cent of the force per diem 

dition exists only in the lower grades and it is now bein

to determine if some means can be instituted to hold the 

coal passers wipers and others for a longer period

The main functions of this division are the maintena

preservation of inactive vessels the former being consid

overhead or care taking element whereas the latter is 

ductive or tangible effort which not only keeps the ships fr

deterioration but actually enhances their values as operative 

for sales purposes

Between 65 and 70 per cent of the expenditures for the 

has been for preservation The total preservation expe

divided into nonrecoverable and recoverable the latter ite

senting approximately 785 000 which was necessary to 

a number of the ships to properly preserve them but at 

time putting those ships in firstclass condition as operat

exclusive of repairs and outfittings This expenditure c

cleaning scaling and painting the holds tank tops dec

quarters etc which items have always appeared on shipya

lists of ships being put in operation This work will no

be done when those ships which have passed through the 

tion processes are broken out for operation

With an average of 892 ships in lay up and an average 

only two men per ship a systematic preservation prog
NINTH ANNUAL REPORT UNITED STATES SIIIPPING BOA

adopted so that all ships would receive due attention in s

of their classification and desirability as operating ships

The following table dives various data in respect to the 

of ships in custody of this division number of ships enter

withdrawn from lay up etc

From May 12 to the close of the year eight spot ship

taken in custody by this division These eight ships had all 

completed and were otherwise ready for sea before they were 

over to the laidup fleets No expendable stores or equipm

removed All ships were kept in readiness to turn back to op

with steam up within 48 hours In most cases the chief e

and steward who came in with the ship were retained at laidu

wages to watch and care for their particular ship while in 

This scheme of handling spot ships seemed to work out satisf

and certainly at a big saving to the corporation over the old 

of having operations hold spot ships for an indefinite period 

crew aboard and steam up

Upon request of the maintenance arid repair department 1

selected for Dieselization are to be completely cleaned sca

painted by this division Five of these vessels have been f

and the rmainder will be completed later as required by t

version program

Under a special appropriation funds were available fo

docking a number of the laidup ships Full advantage wa

of this opportunity to inspect and preserve the underwater 

52 vessels These inspections proved conclusively that the sh

moored in waters which have no particular deteriorating e

steel hulls and from this it was concluded that further dock

some time at least was not considered necessary

The outstanding factor in the efficient and economical pr

tion of the Iaidup ships has been the adoption of labor sav

vices for the cleaning scaling and painting operations A

pressor plants pneumatic hammers of various types power 

wire brushes and paintspraying machines constitute some 

devices put in operation during the past year at each fleet

eus Shipsln Ships en Ships Ships in custody 

District lay upp fleeeet tering wi

n Ilay upp acct flee 

7uve 30 up dun nYtlurivg duringud Juue 30 

1924 Year Year 1925 

New York 242 48 34 250 

Reg Island 100 13 9 104 

James River 379 35 14 400 

OWL 103 32 21 114 

Pacidu coast 29 22 9 42 

Total 853 I

148 91 910 

From May 12 to the close of the year eight spot ship

taken in custody by this division These eight ships had all 

completed and were otherwise ready for sea before they were 

over to the laidup fleets No expendable stores or equipm

removed All ships were kept in readiness to turn back to op

with steam up within 48 hours In most cases the chief e

and steward who came in with the ship were retained at laidu

wages to watch and care for their particular ship while in 

This scheme of handling spot ships seemed to work out satisf

and certainly at a big saving to the corporation over the old 

of having operations hold spot ships for an indefinite period 

crew aboard and steam up

Upon request of the maintenance arid repair department 1

selected for Dieselization are to be completely cleaned sca

painted by this division Five of these vessels have been f

and the rmainder will be completed later as required by t

version program

Under a special appropriation funds were available fo

docking a number of the laidup ships Full advantage wa

of this opportunity to inspect and preserve the underwater 

52 vessels These inspections proved conclusively that the sh

moored in waters which have no particular deteriorating e

steel hulls and from this it was concluded that further dock

some time at least was not considered necessary

The outstanding factor in the efficient and economical pr

tion of the Iaidup ships has been the adoption of labor sav

vices for the cleaning scaling and painting operations A

pressor plants pneumatic hammers of various types power 

wire brushes and paintspraying machines constitute some 

devices put in operation during the past year at each fleet
172 NINTII ANNUAL REPORT UNITED STATES SHIPPING BO

The preservation work which has been accomplished is b

by the following table

I

between Betw

rercenteornpleted pereent and 75 evd 

per cent per 

I

Nuenberrof vessels 70 82 I 

Complete information on the work accomplished is 

quarterly to headquarters by each district so that the exa

vation status of each ship may be known at headquarter

ship values can be adjusted according to the work compl

moval of any equipment from a laid up ship is reported 

quarters where an adjustment is made in the value of the 

which it is removed The value of the equipment remove

year amounted to 115 000

2

For the fiscal year 1925 it was estimated February 7 1

750 00 would be required for laid up ships of whic

5500 000 was to represent the improvements to vessels a

of the preservation program A careful check on all item

chargeable to the laidup fleet expense will show the actu

operating this division to be well within the estimated app

and at the same time it has been previously pointed out tha

mately 785 000 instead of 500 0 was actually spent t

the condition of the vessels

DISTRICT OFFICES

The Fleet Corporation is represented at various seapo

United States by district organizations which have been in 

a number of years and in which during the past Fiscal 

has been little change in jurisdiction or duties aside from 

may have been incident to the reduction in personnel durin

In pursuance of the general policy of the Fleet Corp

require the managing operators to assume greater respo

the operation of the vessels assigned to them it has bee

to materially reduce the organizations in the districts as r

other activities have been assumed by the operators

There are outlined below the jurisdictions of the variou

the headquarters and branch offices of each and comparat

for the number of personnel and annual pay rolls at the 

fiscal year 1924 and on June 30 1925 The personnel an

figures cover all personnel located in the districts without 

the pay roll on which this personnel is actually included 

cases they are on district pay rolls while in others they 
NINTH ANNUAL REPORT UNITED STATES sIIIPPING BOAR

of the field forces of departments in Washington and inclu

their pay rolls

New England District

This district covers Boston and Fall River Mass Pro

R I Portland Me St John New Brunswick and Halifa

Scotia The principal office is at Boston Mass with a bran

at Portland Me The personnel located in this district on J

1924 numbered 48 with a pay roll of 106 880 per annum 

by Tune 30 192 had been reduced to 22 employees with a 

of X51 000 per annual

New York District

This district includes the port of New fork IIoboken Ne

Harbor and vicinity The headquarters for this district are 

in New York City and there are no brunch offices although 

arate organization is maintained at the Hoboken termina

personnel located in this district on June 30 1924 numbe

With a pay roll of1010 86 which by June 30 1925 h

reduced to 990 employees with a pay roll of1044 81

Philadelphia District

This district covers the port of Philadelphia and vicin

headquarters at Philadelphia The personnel located in this 

on tune 30 1924 numbered 96 with a pay roll of 173i

annum which by June 30 1925 had been reduced to 43 em

with a pay roll of 87526

Baltimore District

This district includes the port of Baltimore and vicinity 

headquarters are in Baltimore The personnel located in this 

on June 50 1924 numbered 52 with a pay roll of 1125 

be Time 30 1925 had been reduced to 20 employees with a 

of x54 040

Norfolk District

This district includes the various ports in Hampton Ro

vicinity with headquarters at the Army supply base near 

Va Aside from the usual district activities supervision 

cised over the activities of the Army supply base which h

leased to a private concern and a fuel bunkering station 

tained at Craney Island Tile personnel located in this di

June 30 1924 numbered 80 with a pay roll of 160 294 w

June 30 1925 had been increaser to 124 employees with a 

of 4212 053 This increase was due to the fact that during 

the Fleet Corporation took over from the War Departm

Army supply base at which it was necessary to set up an 

zation
174 NINTH ANNUAL REPORT UNITED STATES SHIPPING HO

South Atlantic District

This district covers North and South Carolina Georgia 

eastern coast of Florida The principal office is located 

nah Ga with branch offices at Charleston S C and Jac

Fla The Charleston S C office in addition to its regu

also exercises supervision over the Charleston Army Base 

leased to the port utilities commission of Charleston S 

personnel located in this district on June 30 1924 numbere

a pay roll of 105 220 per annum which by June 30 1925 

reduced to 13 employees with a pay roll of 3220

Gulf District

This district covers all ports on the Gulf of Mexico Th

pal office is located at New Orleans with branch offices i

ton Tex and Mobile Ala During the early part of the f

a branch office was also maintained at Pensacola Fla but 

was discontinued in March 1925 In addition to the usua

activities a fuel bunkering station is maintained at Mo

The personnel located in this district on June 30 1924 

144 with a pay roll of 303 622 per annum which by June 

had been reduced to 99 employees with a pay roll of 2113

Pacific Coast District

This district includes Oregon and California The princ

is located in San Francisco Calif with branch offices at 

Oreg and Los Angeles Calif The personnel located in 

trict on June 30 1924 numbered 129 with a pay roll of 

per annum which by June 30 1925 had been reduced t

ployees with a pay roll of 214 420

Puget Sound District

This district includes Puget Sound and nearby ports i

Columbia The personnel located in this district on June 

numbered 48 with a pay roll of 10012 per annum which 

30 1925 had been reduced to 36 employees with a pa

94700

UNITED STATES PROTECTION AND INDEMNITY AGENCY I

During the fiscal year ended June 30 1925 the method of 

claims of a protection and indemnity nature against Shippi

vessels through the United States Protection and Indemnit

Inc was continued on the basis as described in the seven

report

On February 15 1925 Mr N A Smyth resigned as pre

the Protection Indemnity Agency Inc On the resig

Mr Smyth all of the capital stock of the agency was trans
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

the United States Shipping Board and pursuant to a resolu

that board the certificates of stock were deposited with the tre

of the Fleet Corporation

On February 16 1925 Mr Willis G Mitchell was elected pr

of the agency and a member of the board of directors

The annual meeting of the stockholders was held on Febra

1925 and the following were elected directors L C Palme

Cone and W G Mitchell

On April 1 1925 it was decided to have all cargo claims h

through a department mown as the cargo claims department 

personal injury and miscellaneous claims handled through t

sonal injury claims department the previous arrangement 

been that claims were handled as domestic and foreign It 

that under the plan of organization adopted on April 1 1925 

specialized and effective handling can be obtained

When it is remembered that claims which are presented 

agency for investigation and adjustment include claims fo

loss damage shortage pilferage personal injury and illness 

clock damage fines and penalties and miscellaneous claims 

from the operation of the vessels and the handling of cargo 

sirability of the Emergency Fleet Corporation having claims 

above nature settled by an agency of its own creation is a

The efforts of the agency are not only confined to the inves

and settlement of claims but a considerable amount of time 

in analyzing the various causes and classifying these causes 

odical reports are made to the departments of the Fleet Corp

as to the nature of the claims arising in the various services 

that corrective steps may be taken

The following table shows the total number and nature o

settled during the fiscal year ended June 30 1925 and t

amount paid thereon

Nature of claim Namber A

Cargo damage

Cargo shnrtagr

CargoPilfer

Personalinlury

age

Illness

Death

Miscellancous

Dockdamn

Fines and Penalties

Fa

2469 1 

9043 1 

9 74 

678 i 

504 

39 

Lib 

455 

3920 

17770 1 

The above table includes the claims which arose prior to F

20 1923 and those which arose subsequent to that date Th

which arose during the fiscal year ended June 30 1925 an

were settled during that year are also included in the abov
176 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

The agency during the last six months made a co

effort to dispose of the majority of the claims which a

to February 20 1923 which is the date on which the 

Board tools its vessels out of the mutual insurance c

private club and enrolled them in an agency of its ow

FOREIGN OFFICES

Europe

During the fiscal year of 1925 material modifications 

made in the methods of handlin our European affairs a

ant changes made in the European personnel

Early in the year the trustees reached the decision th

cient functioning of the European organization was of s

tance to the corporation as a whole that every effort shou

to improve and expedite the handling of our European 

and with this in mind and recognizing the fact that m

problems requiring prompt decisions were continually 

the European district it was decided to place one of the 

dents in entire charge of affairs in Europe Mr Sheedy 

president in charge of operations was selected for this po

arrived in London to assume his new duties about Augu

having authority under the policies laid clown by the hom

settle problems which previous to this time had been r

Washington for decision This avoided much delay and c

materially to the functioning of the European organiz

tended to coordinate the European activities of the Fleet 

tion and the United States Lines under one responsible h

It appeared that the time had arrived when much cou

toward bringing our methods of operation more nearly 

with commercial practice by placing the maximum of res

upon the operators through their European agents gran

authority commensurate with their added responsibilitie

ganization to act in only a supervisory capacity to prote

terests of the corporation With this in mind he whole 

scheme of operations has been thoroughly reviewed and re

ing the fiscal year just passed with the idea of obtaining th

economy and simplicity consistent with efficiency and g

ation

In order to maintain a thorough general supervision of 

of our activities in Europe the territory was subdivided 

general districts each of which was placed in general ch

district operating representative To each district was also 

a district traffic representative and a traveling auditor

The changes in organization of field offices may be su

as follows
NINTII ANNUAL REPORT UNITED STATES SKIPPING BOA

District headgrmarters eatabiixhcd

Copenhagenfor Scandinavia and north Baltic ports

Ilamburgfor Germany and southern Baltic ports

Antwerpfor western Europe including Netberlands Belgium 

coast of France

Genoa western Mediterranean and Spanish ports

Piraeus eastern Mediterranean district

Port of ees closed Gothenburg IIelsingfors Rotterdam Bremen 

Bristol Azores Marseille Constantinople

Offices transferred Constantinople to Piraeus Marseille to Genoa 

burg to Copenhagen

Offices closed but where district representative is maintaining headqu

offices of either general agents or United States Lines Bremen 

States Lines Ilamburg general agents Le Havre general 

Dublin United States Lines

Special surveys of the different phases of our operation

been undertaken as regards service and supply contracts a

contracts executed wherever necessary to insure that we ob

best conditions possible this applying particularly in re

stevedoring and towage agreements Terminal and berthing 

ties have been inspected and changes made wherever found 

able agreements have been made and extended to meet 

terests In all these phases the collective bargaining powe

corporation has been exercised fully to insure that we ob

best conditions possible and in all cases at least the equiv

those obtained by the most favored of our competitors

Good results have been obtained in the concentration of ou

ties in the hands of not more than two agents in each po

wherever possible in order to eliminate undesirable com

among the too numerous agents which existed in the past 

tablishment of American agencies at the various ports has a

strongly indorsed and supported

While the policy of limiting repairs made in Europe t

absolutely necessary to insure seaworthiness of the vessel h

continued the actual method of candling and supervising 

has been materially modified in the past year with a view to 

ing the greatest economy consistent with efficiency This h

accomplished by assigning duties formerly performed by t

superintendent engineers at the various ports to the district op

representatives in the districts Most of the district represe

have had sufficient engineering experience to handle the o

repairs but where due to the size of character of a repair 

technical services or attendance are required the district rep

tives are at liberty to call upon the services of a local indep

engineer in the port to attend the work and assist the represe

Within the ensuing fiscal year it is contemplated that the h

of all voyage repairs in Europe will be taken over by the ma
17 NINTH ANNUAL REPORT UNITED STATES SHIPPING B

operators who will provide for their own engineering se

various ports of call this in accordance with the policy no

in the United States the board in Europe retaining gen

vision of repairs only and direct control in handling ma

ties as grounding collisions etc and special repairs invo

bines and gears and electricdrive repairs

General business conditions in Europe throughout the p

ered by this report while showing improvement over the 

year along the lines of stability in the matter of national 

of different countries were not good so far as the genera

of commodities is concerned This resulted in a contrac

demand for cargo space and increased competition among

ferent shipping lines for such business as was offered with 

general lowering of freight rates

Daring this period our position was considerably str

through the consolidation effected among our operating c

thereby lessening the competition in certain points of E

tween the different services It has been our policy to 

greatest latitude possible consistent with our position as 

our operating companies in the matter of meeting the rates 

ing conditions of our foreign competitors on the westbound 

The efforts of the European traffic department continue

centrate upon the securing of westbound cargo for the s

during the period a great reduction was effected in the num

vessels taking ballast homeward

The contract for transportation of Egyptian cotton from 

dria to North Atlantic ports was renewed during the perio

also the contract with the Finnish Cellulose Association and 

land Bulb Growers Association for the movement of their 

to America

We have continued our efforts in the matter of com

surance discrimination against our vessels During the p

have had numerous conferences with shipping and underw

terests whenever it was brought to our attention that 

charged against our vessels were higher than those levie

competitors ships Our efforts have been successful with 

that our ships are now enjoying the same insurance rates as 

classed vessels of our competitors

Argentine and Uruguay

The branch office of the Fleet Corporation at Buenos A

tinued during the fiscal year 1925 to supervise the activitie

tonnage in Argentine and Uruguay with practically no c

its organization or in its activities
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

Brazil

The Brazilian agency of the Fleet Corporation has continu

ing the fiscal year 1925 the supervision of the corporation sa

in Brazil with no important changes in its organization asid

the establishment of an office at Santos Serious congestion 

at this port and the office at Rio deJaniro was at a cons

disadvantage in obtaining reliable and prompt information 

ing the Santos situation and in cooperating with the agents 

various lines An office was therefore opened in Santos in 

192

Orient

The agency of the Fleet Corporation with headquarters at 

has continued the supervision of the affairs of the Fleet Corp

in the Orient with essentially the same organization as that 

previous year consisting of the headquarters staff at Man

branch offices at Hongkong Shanghai and Iobe In additio

is an office at Yokohama which reports to the general ag

Japan located at Ifobe

UNITED STATES LINES

The United States Lines is the trade name of the Fleet C

tion s organization that operates the steamships Leviathan 

Washington Aincrica Republic President Roosevelt and P

Harding in the passenger and freight service between New 

Queenstown Plymouth Cherbourg Southampton and Brem

Since the adoption of the present immigration law and th

quent reduction in immigrant passenger traffic much effort h

directed to the development of roundtrip tourist thirdclas

by students teachers professional men and women tourists 

veterans with such satisfactory results as to practically offset 

of immigrant traffic

The steamers in the service have been maintained in sati

operating condition have complied in all respects with the 

ments of the American Bureau of Shipping and upon each 

ture from a foreign port have regularly passed the inspecti

requirements of the British and German Governments that a

in connection with passenger steamships sailing from their 

During the winter overhaul an improved ventilating sys

installed on the Leviathan under the supervision and dire

ventilating experts of the Navy Department so that the ve

in all passenger rooms has become eminently satisfactory

To take care of the increased demand for cabin space 

America 52 additional staterooms were constructed in spa

merly occupied by a part of the crew and additional crew 

provided in other sections of the steamer This increased 

should increase the revenue

APPENDIX

1
182 NINTH ANNUAL UNITED STATES m B

z

z
NINTH ANNUAL REPORT UNITED STATES SHIPPING BOARD 

TAnr a IIStatus of vessels controlled by United States Stripping 

Emergency Fleet Corporation as of June 30 1025

in specified services United States ports to foreign ports

Cargo United States Public 11eelth Service

Cargo United States Army Service

Barges steel

Barges wood

Tugs

Tugs

st

wood

eel

Total active vessels

active vessels

Cargo tied up

Passenger end cargo tied up

Refrigerators tied up

Cargo tied up butassigned

Tavkers tied up l

Cargo custody United States Shipping Board as

Cargo contract unfinished

Tugs steel

Tugs word

Total inactive vessels

Grand total all vessels

I Includes one 7500 concrete tanker

Number w

251 

26 

16 

6 

3 

1 

1 

1 

1036

331 

8585 I 

14 

914 

1245 

NINTH ANNUAL REPORT UNITED STATES SHIPPING BOAR

F

o

Oe

L

a

qF

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SCHEDULE 1Cash and unrequisitioned appropriations available fo

purposes as of June 30 1915

Emergency shipping fund

General

Restricted

cash

cash

in

In

the

the

United

United

States

States

Treasury

Tiensury

314

Ship sales 41

02

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Restricted

Revolving

cash

cash

in

funds

to

banks

books

60

2

Ship sales 

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disbursing officers accounts 11 0

Cash in transit 5

4

Good

Managing

faith

aceute

deposits

trust fund cash 

8240

2

Total 0 3

Additions Disbursements from general cash for account of

Dleselization cnntrnuts for which general cash null

be reimbursed from the Dleselization fund subse

quent to June 30 1925 103 374 15

Unrequisltloned appropriations emergency shipping

fund 11424 04

Total 

50 4

Deductions

Amount of receipts from Iiglddntlon activities in es

cess of requirements for liquidation expenses to he

transferred to construction loan fund subsequcut

Amount

to June

of

30

cash

1 925

and uneapendpd appropriations avail

62822 071 90

able for general pnrpnses in excess of outstanding

obligations transferred to Dleselization fund 3 150 2294

Total 9 8

40 0

SCHEDULE 2Teconciliation of cash balance June 30 1925 as s

treasurer scash statement with cash balance as shoum by stat

assets and liabilities as at June 30 1925

Cash balance as per treasurer scash statement1840

Deductions Amount set Haile for construction loan fund by

authority of section 11 of the merchant marine

Amount

act of

established

1920 and included

as a fund

in

for

Schedule

the Dieaeliza

A157424 003 52

tlon of vessels and included in Schedule A4 8 217 160 20

Restricted rash available for settlement of

claims included in Nebcdub A 8 570 543 66

Amount of cnsb available from 1995 salaries and

expenses appropriation and included in Sched

ule A3

9 803 01 60 2

4U U

Addition

Unrequlsitioned appropriation emer shipping fund Included

In Schedule A1 

40 6

SCHEDULE 3Cash and unrequisitioned appropriations available for ex

United States Shipping Board as at tune 30 1925

Cash available for salaries and expenses fiscal year 1725 2

80

Unrequisitiuned appropriations

Salaries and ex senses fiscal year 1924 sundry civil act

Feb 13 1923 813983

Printing and binding fiscal year M4 sundry civil act

Feb 13 10 28721

Salaries and expenses fiscal year 105 sundry civil act

June 7 1024 10746 3

Total unrequisitioned

Total

1
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TABLE YIIIEmpioUees of the United States Shipping Board 4cho 

separated during the fiscal year ended June 30 1925

Name Designation Salary Date 

Be Marlen Clerk typist 81320 Sep

Buckley CharlesSJunior clerk temporary y1320 Ma

Burch Edward C Junior clerk 1320 Ap

Day BlancheRJunior clerk temporary 1320 Ma

Dormer Katherine Junior clerk 132 Ma

Dunn Marie C Senior tvpisL 1320 Ma

Frederick E 1I Special assistant to chairman 5009 July 

Baneock Edna Senior stenographer 1810 Ap

Ilodon MaryC Assistant librarian 15100 Ma

Jenkins L C Special expert 800 No

Kremer Carl P l SecretarY 52M Ma

Lyons Robert I Messenger1200 Aug 

Maxwell LWSpecial expert 3800 Jun

Manghnm D E Exam fine 4010 Jan 

Miles Florence G r clerk 1320 No

Ricketts Ralph A Cnlerk 1680 Aug 

Schwartz Morris S Tariff clerk 2000 Ma

Stewart Josephine II Senior stenographer 1680 Sep

Verdi Joseph J jrI Typewriter mechanic 100 Au

Waller RaymondEElectrician 1080 Fe

1 Transferred to Emergency Fleet Corporation roll

Compensation of employees of United States Shipping Board in serv

June 30 1925

Name Designation Legal residence I 

S

V0
212 NINTH ANNUAL REPORT UNITED STATES SHIPPING 

Compensation of employees of United States Shipping Board 

June 40 1925 Continued

Name Designation Legal resi

Julius Manns Laborer Washington 

James H M thioL Chief d roftsman Maryland 

ROY H Morrill Secretary Massach

Lillian E Mulbn Senior typists Washington 

John Nicolson Special espert New York 

Alice F Nollner Senior stenograpber Washington 

T VOConnor Chairman New York 

Lottie Penn Senior typist Maryland 

M JPierce C hief clerk Teuue

E C Plummer Commissioner Dtsue 

Logan Pressler Clerk ohio 

Virginia W Price Examiner Virginia 

Fred A ui Senior clerk PennsY Iva i 

L E Ranuuk

Cle rk d0 

7 r0 Assistant r gent siasi ng agent Washington 

Katherina th rina C Telephone opehaperator do 

H Rhoderiek Clerk lion do 

L R Roberts Ming section Iowa 

Harry S Riggles Jnunior clerk Virgini 

Iohv A Russell Assisnt ta secretary Mich ig

Evely D1 Sackett Savior stenographer Washington 

L E au clad Special expert New York 

D W Sbnn o M uIt igraph operator Washington 

Rill M Skinner Librari d

Bien R Snider Admiralty counsel Washington 

Marietta A Stevens File clerk India

Margaret D Stratton Copyist draftsman Washington 

F 1 Thompson Commissions rAlaba 

AnnaTiede Examine California 

Landon W Trudgion Assistant to secretary Washington 

Fmma Von Toer eSenior stenographer Wisconsin 

Phomas A Wadden Senior examiner South Da

Lillian Wagner Senior typist Minnesota 

May Wagner o Washington 

AlmaL Webster do do 

9eorge West Messenger California 

Bertha E Wolfe Clerk Washington 

L S Woodruff Attorney New Jerse

W MWoods Accountant Massach

Virginia E Nooit it Clerk Maryland 

W H VOOlfolk Examiner Virg

Marie CWyatt Telephone operator Washington 

WalterZiwn Senior typist Pennsylv
INDEX

Admirality division report 

Advertising department report 

American Bureau of Shipping 

Benson W S commissioner 

Bills of luli

Boston Bass Army base 

Brooklyn N Y Army base 

Bureau of Construction report 

Bureau of Finance report 

Bureau of Law report 

Bureau of Operations report 

Bureau of Regulation report 

Bureau of Research report 

Bureau of Traffic report 

Charleston S C Army base 

Claims division report 

Coastwise laws 

Philippine Islands 

Virgin Islands 

Samoan Islands 

Conferences and agreements 

Consolidation of services 

African 

BlackSea 

Continental 

European 1821 137 

Par East 2

145

Mediterranean 1S 1

South American and Nest Indies 1

Construction Bureau ofreport 

Construction loan fund 

Continuous discharge books 

Contract division report 

Contracts opinions recoveries and special assignments division report 

Diesel

Di

engines 7177 1

scr imnations 3

4

District offices reporton 

Drydocks 1

Emergency Fleet Corporation

Organization of 

Polley operation 

Report of president 

Secretary report of 

Trustees 

Federal Marine RailwayCo 

Finance Bureau ofreport 

Finance report 

Accomplishments and disposition of billed accounts receivable fisca

year ended June 30 1925 appendix TableVII 

Balance sheet June 30 1925 appendix Table IY

Consolidated cash statement June 30 1925 appendix Table VII

General comptroller report 

Gross appropriations and allotments from inception to July 1 1925

appendix TableX

Profit and loss fiscal year 19 25 appendix TableXI 

Foreign offices reporton

Foreign registry transfer to

Freezones 

213
214 INDEX

Fuel 

Conservation

Costs

of 

Storage

General comptroller report 

GreatLakes 

Great LakesSt Lawrence waterway 

Hague rules 

Haney Bert E commissioner 

Hill William S commissioner 

IIogIsland 

Industrial relations division report 

Sea service section 

Internal combustion propulsion 

International Chamber of Commerce 

Interstate Commerce Commission 

Investigations division report 

Labor Dock and longshore 

Placements

Policy

Vessel personnel 

Laidup fleet 

Law Bureau of report 

Legal department report 

Admiralty division report 

Contracts

port

opinions recoveries and special assignments divis

Litigation division report 

Litigation report of period June 28 1924 to June 27 1025 a

TableXIS 

Liquidation 

Lissner Meyer commission

Litigation division report 

Report of period June 28 1924 to June 27 1925 appendix Ta

Mail United States carriage of 

Maintenance and repair division report 

Managing operators of vessels list of as of June 30 1925 ap

TableTV 

Marine insurance department report 

Merchant marine act 1920

Section 7 establishment of routes 17 2

Section

Section 8

11

port

construction

facilties

loan

investigation

fond

2359

Section 17 transfer of port facilities 

Section 19 rules governing foreign shipping 

Section 21 investigation of services to Philippine Island

Section 23 exemption from excess profits tax 

Section 24 report of hearings 

Section 25 classification of vessels 

Section 27 coastwise trade 

Section 28 through preferential rates 

Section 30 ship mortgage act 

Section 34 discriminating duties 

Norfolk

O

Va Army base 

Conner T V chairman Shipping Board 

Operations Bureau of report 

Industrial relations division report 

Investigations division report 

Piers and wharves division report 

Port facilities division report 

Operations Emergency Fleet Corporation 

Palmer L C president Emergency Fleet Corporation 

Personnel 

List of employees of the United States Shipping Board fisc

ended June 30 1925 appendix TableXII
INDEX 

Philadelphia Pa Army base 

Philippine Islands coastwise laws of 

Piers and wharves division report 

Plummer Edward C commissioner 

Port facilities division report 

Ports

Dry docks 1

Free zones 

Investigation of facilities 2G3

57

Piers and wharves 

Publications 

P Iagency 

Purchase and supply division report 

Radio communication 

Regulation Bureau of report 

Repair

Costof

of vessels

Dutyon

Research Bureau of report 

Sale

Listof

of vessels

Toaliens 

Samoan Islands coastwise laws of 

Secretary of Shipping Board report 

Services

Adequacyof 

Consolidation of 

See also Consolidation of services

Ship sales department report 

Shipping act 1916

Section 9 transfer of registry 60 GI 63 87 9

Section 12 cost of shipbuildia 5G 

Section 15 conference agreements 47 

Section 10 common carrier by water 

Section 17 common carrier in foreign commerce 

Section 18 common carriers in interstate commerce 47SS

Section 22 violation of shipping act 

Section 41 board approval of transactions 

Statistical department report 

Surplus materials report 

Thompson Frederick L commissioner 

Traffic Bureau of report 

Traffic department report 

Transfer of vessels 61CG 

Treasurer sdepartment report 

United States Lines 1

United States Shipping Board

Functions 

Organization 

Membership 

Recommendations of 

Vessel personnel See Labor

Vessels

According to type and dead weight tonnage June 30 1925 appendix

TableIII 

Acquisition and disposition of appendix TableVI 

Construction of appendix Table VI 

Controlled by United States Shipping Board Emergency Fleet Cor

poration appendix Table I

lxenemy appendix Table VI 

Operators and managers of as of Tune 30 1925 appendix Table IV 

Status of June 30 1925 appendix Table II 

Transfer of 614

War Department 

York Antwerp rules 
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