77th Congress 2d Session

UNITED 

MARITIME C

REPO

TO CON

FOR THE PER

OCTOB

194

SITED 

COS MOMENT PR

R ASIIISCT

For sale by the Superintendent of Documents W
UNITED STATES M

OFFICE CO

WASH

COM

EMORY S 

JOHN M 

EDWARD M

HOWARD 

THOMAS 

W C PE
TABLE OF 

Introduction

Organization 

Studies and investigations 

Legislation 

Rules and regulations 

Vessel construction 

Construction differential subsidy 

Operating differential subsidy agreement

Aid to vessels over 20 years of age 

Statutory reserve funds 

Training program 

Insurance 

Federal ship mortgage insurance 

Litigation and claims 

Regulatory functions 

Formal docket 

Shortened procedure 

Informal docket 

Special docket 

Interstate filings 

Agreements filed under section 15 S

Foreign rates and bills of lading 

Special investigations 

Transfer of vessel registry and sales to a

Governmentowned vessels 

Terminals 

APPEN

A Assets and liabilities June 30 1941 

A1 Summary of income and expenses 

30 1941 

B Appropriations transfers collections 

1936June 30 1941 

C Summary of ship construction progra

D Shipways construction as at October 

E Sales of shipslong range programa

F Vessels over 20 years of age on which 

has been paid during the period fro

30 1941 

G Abstract of formal decisions entered 

1941 

H Claims arbitrated or settled under Sui

16 1940 to October 15 1941 

I Statement showing total operatingdi

from inception through December 

from subsidized operations in exces

Capital employed and tentative 

tory special reserve funds at Dec

requirements based on estimated fig

pursuant to the Commission sGene

J Statement showing actual deposits into 

capital reserve funds of operato

differential subsidy agreements wit

mission and tentative comparison 

reserve funds at December 31 19

based on estimated figures submitte

Commission sGeneral Order No 31 

LETTER OF T

UNITED ST

To the Congress

I have the honor to present here

Maritime Commission for the year 

This report is submitted pursu

Marine Act 1936 as amended wh

shall at the beginning of each reg

gress which shall include the resu

of its transactions its recommen

of all receipts under this act and 

tures were made

The Commission is not submittin

for legislation The authority co

granted to the Commission by th

emergency If any developments 

the Commission to amplify this 

made to the Congress for its cons

The accompanying report cov

Commission for the period under 

UNITED STATES MAR

INTROD

The supply and utilization of me

national defense effort the program 

prosecution of war by the antiaxis 

to these shores rubber from the 

America chromium from Africa m

essential to our emergency productiv

of the United States would be ham

defense is a question of materi

Without ships to transport the tan

planes the aid which this coun

democracies would be abortive

While the Navy is our first line o

to fuel its manifold vessels must b

oil fields to the refineries and thence 

throughout the Atlantic and Pac

Neighbor Policy of this Governm

shipping services with the other 2

order that their exportable surplus 

materials may find a market

When active warfare broke out 

was followed shortly thereafter by 

lation the major concern of many 

profitable employment for the ves

their usual trades to the major po

which had normally purchased abo

the war progressed additional cou

the blackout area but other factors a

tunity to trade with these areas 

Western Europe by Germany in the 

dom was forced to rely more and mo

its colonies and dominions and the U

with the increased effectiveness of 

British to allocate to direct servic

stantly increasing proportion of 

worldwide trading This placed a 
2 REPORT OF THE UNITED 

merchant marine and the othe

orbit of the British war effort

On September 1 1939 the U

vessels of 2000 gross tons and o

Great Lakes consisted of 939 s

tons Since that date over a m

transferred to foreign registry 

was withdrawn from the dome

tonnaged in 1939 These vessel

Commission slaid up fleet were 

Great Britain and her allies 

Hemisphere While these vess

years of age are no longer reg

they have continued to serve the 

have been placed in trade to th

have assisted in the maintenan

countries of this hemisphere

During the same period the 

have called upon the Maritime C

essary auxiliaries The Army a

15 194132vessels with a gross 

tons Sixtytwo of these ships 

struction program inaugurated 

routes of the United States hav

power represented by these fast n

production demands a vast incr

critical arid essential materials

The merchant marine of the U

break of the European war trans

import and export trade In 19

ing tankers United States flag 

percent of our total imports T

about 75 percent of the import

alone brought to this country in 

tion Management has indicated 

of strategic and critical materia

over 1940 the heavy strain upon 

the other neutral ships requires 

nage in order that our productiv

consistent with the promises w

will be the arsenal of democracy

In recognition of the importa

of our national defense efforts 

taken a tremendous expansion o
REPORT OF THE UNITED ST

originally established in 1938 as 

decade Even prior to the outbrea

mission accelerated its existing pr

at peacetime prices in the late su

further accelerated in the summer 

ing the commitments at existing s

In the early part of 1941 our na

the democracies made it imperative 

Fortunately the shipbuilding act

over the preceding 3 years permitte

place without the long delay wh

effort in the last World War Co

200 vessels in the Liberty Fleet at 7 

upon Shortly thereafter the cons

was authorized by supplemental 

appropriations during the course 

construction to a figure of approx

mated that 6 million tons will b

remainder during 1943

Until deliveries under this pr

output balances the net loss of 

tion by warlike action acq 1isit ions 

drains upon commerical tonnage 

transportation problem will conti

unfoseeu difficulties in the acqu

undue stoppage of work the sp

vessels a day sliding down the launc

The effective use of the limited s

desire to prevent the phenomenal 

acterized the last World War have 

the past year to exercise definite me

industry The necessity for coord

facilities was recognized by the Pr

1941 in which he requested the cha

with the assistance of the other G

to take proper steps to seenre the ma

tonnage

Pursuant to this directive the C

for transmitting the requirements 

and industry for transportation o

ators engaged 011 specific routes O

had indicated in a series of instru

ferences and to individual stea

48681 41 2
4 REPORT OF THE UNITED 

freight rates will not meet wi

unless the statements in suppor

tiated This system of volunta

mented by enactment of the S

that necessary facilities for th

available in the first instance 

takings satisfactory to the Com

cargoes transported and rates c

The oceangoing fleet of the U

fer of over 2 million tons to t

registry is equal in carrying pow

1 1939 and vastly superior t

Conunission sprogram for 1942 

The repeal of the restrictive 

trality Act of 1939 open the s

this country Whatever new 

the vast construction program 

the United States Merchant Ma

the goods

Organization

The membership of the Comm

in the past year Max ORell T

effective April 1 1941 and his 

lVlacauley The Honorable Joh

from the State of New Mexico 

Commission was confirmed by t

signed from the Commission on 

Under Secretary of the Interior 

1 ion has been filled by John M 

The staff of the Commission h

year The tremendous expansio

sitated the employment of addi

prepare necessary plans specifi

in the 23 shipyards presently en

struction Increases in the te

creases in the various other d

with supervising the financial a

More extensive supervision 

required the recruitment of num

Commission This applies also 

tories and other inspection ac

placed in service by the Commis

try receiving leaselend aid
REPORT OF THE UNITED STA

The only two groups in which t

employment are the Division of R

to maintain the laidup fleet Upo

water carriers engaged in interstate 

merce Commission a small numbe

transferred As all Commissowne

from laidup status the various m

missed except for a small group loca

Total employment of the Comm

mately 2500 persons Two thirds 

main office in Washington and th

Commission sdistrict offices and th

the country

Studies and Investigations

The number of reports on variou

building which have been prepare

past year for its own use and for th

departments and defense agencies h

tion of new governmental agencies 

all other departments concerned wi

it necessary to assemble and dissem

of all phases of the Commission sa

In addition to it customary investi

trade routes vessels and vessel mov

of labor both in the field of shippin

the careful consideration of the Co

tion heretofore available in many 

remedied in part by the applicatio

studies of the employment problem

Among the special studies prepare

past year may be mentioned a repo

project and a report prepared for 

National Resources Board In coo

ment the Commission has continued 

its Port Series pursuant to the provi

Marine Act 1920 but publication ha

the Commission and the Secretary o

in published volumes

Legislation

The major legislation affecting th

the period covered by this report was 

in handling the increasingly critic

going fleet of the United States in t

measures to coordinate ocean ship
6 REPORT OF THE LNIIED 

ministration of the Merchant M

tremendous increase in ship c

Commencing with Public La

authorized the construction of t

as the Liberty Fleet a series of 

Congress during 1941 which p

tion to over13000deadweig

Public Law 23 Seventy sev

Aid Supplemental Appropriati

sion to construct with leaselen

vessels and 100 vessels of the 

the ships to be constructed u

defense aid purposes under the 

On August 25 1941 addition

Supplemental National Defens

tract authorization was grante

ship ways including both the 

chant vessels of such type siz

porting the commerce of the U

sion into naval or military aux

authorization which are to be 

be made available but only by 

whose defense the President te

States in accordance with the 

The President by special me

ment of legislation to acquire 

ships in ports of the United 

idle for many months and some 

for which they were subject to 

until June 30 1942 the Comm

to purchase or requisition any 

of the United States which i

compensation to be determine

provisions of the 1936 act Le

the payment of such compensa

Important provisions in the 

101 authorized the Commissi

domestic or foreign for the pur

transportation of foreign com

essential to the national defen

Under specified restrictions 

vessels and other vessels purch

the Commission was empower

provide insurance for any suc
REPORT OF THE UNITED STA

available to the Commission and 

the United States may be granted 

partment of Commerce and und

approval of the Commission ma

Other provisions authorized the w

merce of provisions of law relating 

and to inspection of vessels in ord

vessels when documented under law

The Commission sstatutory pow

vessels and vessels under construc

fully operative when the President 

emergency on May 17 1941 So 

only for a few vessels

One of the most important ena

effective use of available ships in t

of tonnage is Public Law 173 the s

was designed to bring vessels of al

of the United States under the coo

for ocean shipping The Commis

piring June 30 1943 to enforce p

portation by a system of ship wa

have with respect to the use of fac

cargo handling fueling dry doc

ships without warr and such p

Commission may prescribe In or

owner of a vessel must enter into 

trades in which the ship is to be te

classes of cargo to be carried and 

rate of charter hire or alfreightnR

sion to make fair and reasonable pr

to the importation of strategic and c

of materials when requisitioned by 

tion ofedefense materials

Legislation effective until June 

administration of the 1936 act and 

tion efficiently and speedily under 

ship and construction alaI ship ope

ing out the 1936 Act to negotiate c

petitive bidding to adjust outstan

negotiate charters of Commission 

of competitive bidding and certa

Act Safeguards are specified by 

negotiations or adjustments for 

contract is specified in much detail
8 REPORT OF THE UNITED 

Authority was vested in the d

priorities over deliveries and p

account in favor of the Commiss

and Navy priority legislation pla

the War and Navy Departments 

delivery of materials under con

the President for the defense of t

The authority of the Commissi

sixth Congress to base constructi

was extended to June 30 1942

The maritime training program 

by a measure which authorizes n

and an additional 25000 annual

school conforming with standa

and admitting outofState stud

outofState students to be b

appropriation

An enactment terminating tax 

hereafter issued by the United 

applicable to debentures issued 

Title XI of the 1936 act insura

under obligations which the Com

to the effective date of the enactm

Rules and Regulations

The Commission issued effect

cedure in proceedings under the r

Act 1916 and related acts T

Commission had conducted its 

in 1935 by the Shipping Board 

merce The proposed revision 

pared in 1940 and incorporated 

the Attorney General sCommitte

formal hearing was held in Jan

before the Commission and ot

At the present time 525 attorneys 

been granted permission to appe

draft was later approved by the C

Under its general powers gra

chant Marine Act 1936 as am

have been adopted by the Commi

and functions vested in it Amo

in the period under review a

regulations
REPORT OF THE UNITED ST

1 For the establishment o

junction with the Treasury De

2 For the administration o

3 For filing cargo reports

This latter instance involved the 

tions for obtaining essential info

ment of vessels and the cargo 

emergency shipping situation th

that accurate current information 

VESSEL CO

The scope of our present day s

have been foreseen 4 years ago w

contract for new construction wa

vessel for which this contract w

ered as the S S1menea and 

Department as the S S TetPo

2 years preceding the outbreak o

work was laid upon which the 

program could be imposed witho

panied our construction activities 

defense tankers C2 and C3 d

of the American Export Line and 

started in 1938 to be joined in th

Commission C design vessels and 

by the Seas Shipping Co Goin

ulus from this production progra

ancl several new companies ente

broadest construction program u

The program which the Marit

contemplated the replacement o

fleet Making allowance for the 

capacity of the new vessels it w

for 10 years would supplant the 

earlier era The major concern wa

could be built but who could purc

vate operators being able to abso

realm of likelihood in the light of 

sion Economic Survey of the Mer

the urgent need for new fast and 

considerations of a probable defic

them under Title V of the Merch
10 REPORT 01 1HE UNITED S

therefore with the approval Of 

national policy involved in creat

mist be effectuated and proceede

Title VII of the act

1Vlren the ships which had bee

in 1938 became ready for delive

mission sdoubts that private pur

substantiated Increased revenu

conditions in our foreign trade 

of obsolete vessels at rising pri

purchase or make commitments 

As the total number of old ves

time was about 150 the replace

ships provided equivalent carryi

imum that could be expected un

to the replacement programs ado

of other companies indicated the

vessels front the Conunission spro

As the European situation det

culminating in the outbreak of a

Commission took steps to speed 

quently the defense program an

of the Navy and Army commenc

of new vessels being delivered to 

interesting to note that only 13 

Commission still remain in the h

An allocation of 500 0 and 

from the President semergency 

commence preliminary work out t

ing the 200 vessels of the Liberty F

approved February 6 1941 Th

similar to that used in the 60 vess

had placed construction contract

part of 1940 The problem wh

that of obtaining engines and a

new

longrange

ships without

program

interfering

It was

w

fo

type of triple expansion reciproc

driven winches and other auxil

Maritime Commission standard 

ing facilities would be tapped S

tion of a number of the refinem

vessels likewise facilitated in p

these ships
REPORT OF THE UNITED S

During the course of the yea

pansion of our shipbuilding effo

transporting the increasing flow 

templated deliveries of lease lend 

further large appropriations from 

fense Aid Appropriation Act 

National Defense Act 1942 prov

tions sufficient to augment the Cos

a total of over 1200 vessels of a

toes to be delivered by the end 

being constructecl under this pro

standard

program

cargo

and tankers

designs previous

In additi

structing smaller cargo vessels kn

harbor tugs and a limited number 

The scope of the emergency sh

be encompassed within the exis

The first 200 ships of the Libert

7 new yards 3 on the Atlantic 

Pacific coast As subsequent auth

additional vessels it became nec

building facilities of the country 

been constructecl or are under con

contracts with the Maritime Co

those in the new cards fostered b

struct the emergency vessels bu

existing facilities at 9 established 

Summaries of both the ship c

tion programs are set forth in ap

While the situations are not stri

between this country sshipbuild

War and that in which the Maritim

indicate the progress which has b

time On October 15 1918 the 

contracts for the construction of 

nage of 10513 905 deadweight tu

been let with 73 shipyards having 

fleet construction At that time th

laying and delivery was from 10 

which was built in the shortest t

sels required 6 months and 5 day

time of 7 months and 24 days

On November 1 1941 there w

with building ways capable of ha

428681 413
12 REPORT OF THE UNITED S

equal to that of the Maritime C

total number of ways occupied w

private building was 211 includ

ruder construction or contracte

future ways were under active c

of 275 ways capable of handling 

gram From this amount must be 

shipyards which are reserved fo

this figure and adding the ways 

struction which will shortly be 

sion there will be somewhat over 

shipbuilding program Present 

1200 steel ships totalling 1300

1943 It will thus be seen that th

produce greater tonnage with ap

ber of Launching ways required in 

During the intervening years 

speeding up ship construction ha

by the welder The use of weldin

activity In the first place weld

and can perform their task with

importance in the present era of 

ing activity in which the diluti

importance In the second place 

a launching way is greatly curta

use of welding which permits th

sections of the ship in the various 

of the vessel In the third place 

in operation the all welded ship 

absence of overlapping plates 

capacity of the vessel

Conclusive proof of the impro

the art of shipbuilding is obtai

cumulative totals of deadweight 

tons which were constructed duri

emergency program Assuming 

break of war in each instance 

continuation of the present rate 

gross tons or more will result by 

weight vessel tonnage equal to t

construction period which ended 

time necessary to complete the 

effort at the end of 1943 will be m

ahead of December 31 1918 w

earlier program
REPORT OF THE UNITED S

The tremendous expansion in 

American shipyards particularly 

sponding expansion of the labor 

if the delivery schedules of Navy 

national defense are to be met 

during the decade of the 1930 s

had dwindled in 1935 to betwe

includes yards engaged in ship r

tion Under the impetus of th

construction this figure had app

of 1940 Based upon constructi

year it was estimated that a p

be required by the summer of 19

tional contracts have been enter

Maritime Commission so that ea

to be increased While the ship

ernment have established broad 

necessary skilled workers the pr

handicapped the efficient prosec

and resulted in considerable pi

shipyards but by other industrie

One of the measures adopted t

tion has been the establishment o

ards The cooperation of shipya

of labor engaged in the shipbu

Governmental departments invo

standard agreements for four zo

Atlantic These agreements fixe

ics set up overtime provisions 

nostrike or lockout clause as w

on production They became eff

1 for the Great Lakes on June 2 

and for the Gulf coast on Augus

of these zone standards has exerc

building industry but has by no 

Construction Differential Subsidies

Title 1 of the Merchant Marin

ator engaged in an essential trad

sion for a construction differentia

which he wishes to purchase for o

he is engaged This means in e

a built in the United Stat

him to construct such a vessel i

the difference in cost does not 

price
14 REPORT OF THE UNITED S

The task of securing adequate 

struction costs of a vessel to be 

easy one even in times of peace 

ards of construction and favor

be built in other countries Th

immediately intensified the diffic

tion on this subject In recognit

and later extended the authoriza

date if the emergency ceases to 

war construction costs in makin

chant Marine Act provides that 

maintain a United States regis

felt that the differentials existing 

with a reasonable parity in cost 

More recently the cost of co

has increased approximately 25 

the construction differential sub

ships contracted for during the 

permitted by law

OPERATING DIFFERENT

The number of companies h

agreements with the Commissio

year Operations on particula

marked and in some cases subst

demands for tonnage in particu

more distant quarters of the glo

inevitably occur in time of eme

which the majority of the opera

acquisition of sufficient tonnage 

respective routes

The commitments for the rep

the operators undertook when 

subsidy agreements in 1938 hav

In many cases however the op

use of these new vessels The p

the requirements of the War De

lying bases has meant that a nu

under the Commission sprogram 

tary branches of the Governmen

had not been placed in operati

under the Commission slongra

have subsequently been acquired 

taken directly from commercia
REPORT OF THE UNITED ST

adverse effect of these forced with

tated the acquisition of replaceme

drawn from its Laidup fleet to s

tonnage

The impact of the European w

the Neutrality Act was felt most s

ing service to European destin

United States Line which operate

ger service to European ports W

on July 2 1940 this company ha

structed especially for the Nort

readily adaptable to any other 

the Maritime Commission for re

Resolution No 89 Seventysixth 

them in lieu of layup was grant

of intercoastal voyages and cruises 

of 1941 the War Department chart

ber of trips and shortly thereaft

the America the Manhattan and 

party agreement

Other subsidized lines have als

through purchase or charter by 

Among the ships so transferred fr

orleane and Delta gent no of th

Exochorda of the American Expo

ican President Lines including th

the roundtheworld service fou

for the American Republics Line 

of the Grace Line the lioquoi o

A number of nonsubsidized co

Co Baltimore Mail Co Eastern 

Co have likewise contributed pas

fleets

Despite the disruptions in serv

vessels the delays caused by the 

trades and the difficulties encount

conditions the past year has gen

for American shipping companies 

pairs fuel and other operating 

the existing rate structure provides 

all routes

Tith the amount of foreignflag 

withdrawals for direct service by 

vessels booked to capacity in almo
16 REPORT OF THE UNITED ST

felt that these changed conditions 

of continuing operating subsid

readjustment under the provision

Marine Act 1936 were therefore 

sidized lines and agreements were 

inate subsidy on all items excep

was retained which would provide 

alent to one fourth of his previou

conditions should alter considera

upon request of the operator the 

at any time after 6 months have e

There is set forth in the foll

operating differential subsidy acc

Accrued operatingdifferential subsidy 

1940 to J

American Export Lines Inc

American Mail Line Ltd

American President Lines Ltd

American South African Line Inc

Grace Line Inc

Lykes Bros Steamship Co Inc

Mississippi Shipping Co Inc

Moore McCormack Lines Inc

Now York Cuba Mail Steamship Co

Oceanic Steamship Co

Seas Shipping Co

United States Lines Co

Total

Aid to Vessels Over 20 Years of Age

Pursuant to section 605 b 

amended there is included in ap

20 years of age for which an ope

paid during the period October 1 

payment of subsidy for overag

Commission pending their repla

most cases this replacement prog

pleted by this date if the Army 

of 50 new vessels already engag

quent deliveries of other ships h

of these vessels In consideration 

tioned above the Commission de

the public interest to grant finan

over 20 years of age and directe

as of July 1 1941

When it was ascertained by 

rights of the parties to the subsi
REPORT 01 THE UNITED ST

failure to provide financial paym

under the Commission modified i

1 percent of wages on vessels over 

agreements

STATUTORY R

There are set forth in appendice

with respect to the status as of 

reserve and special reserve funds 

operating differential subsidy ag

section 607 Merchant Marine Ac

be emphasized in connection with 

used are largely unaudited and a

at the time of completion of the a

year 1940 by the Commission sau

Capital Reserve Funds

An examination of the stateme

that deposits into the statutory c

with whom longterm operadiffere

entered into by the Commission 

December 31 1940 These deposits 

ing depreciation charges on the 

20year life expectancy 30715884

the sale of vessels and proceeds of 

by operators on account of total l

from other sources of which 1752

subsidized operations in excess of 1

necessarily employed in the busine

to be deposited into the statutory 

were authorized by the Commission 

capital reserve funds and the rem

untary deposits of earnings from s

wise would have been available fo

of earnings from unsubsidized ope

been so available

Withdrawals from the statutor

December 31 1940 aggregated 412

represented payments to the Com

structed for the operators under 

Marine Act 1936 and 17006 615 77

sidized vessels not so constructed

Balances in the statutory capita

1940 aggregated 20705 027 98 

should be added to this1552 760 90
18 REPORT 01 THE UNITED S

under deposits over over deposits 

liminary calculations submitted 

operators which under deposits 

actually deposited into the fun

Based upon these preliminary fig

ances in the statutory capital re

therein as at December 31 1940 

Special Reserve Funds

By reference to appendix 7 

differential subsidy paid or acc

ments including the socalled te

socalled longterm agreements 

38816 154 35from inception thr

The net profit of the operator

taking into account accrued o

inception under the various agree

December 31 1940 is reflected 

amount of 51420 105 67 The 

ators consisting principally of 1

necessarily employed in subsid

the portion of additional profit

socalled temporary agreements 

term agreements in two inst

leaving a balance of3718 044 95

Of the balance of net profits i

reflected

1

on this statement 

57028 69has been recaptured 

sion under the socalled tempora

iongterm agreements 180643 55

tory special reserve funds and 752

statutory capital reserve fund

deposit of6973 4954as at De

not required to be actually so de

Balances in the statutory 

18069 43 55at December 31 

aforementioned net underdepos

of balances in the fund and 

deposited therein to 25042 9349

TRAININ

The statement of policy con

Marine Act 1936 directs the 

marine and to provide for the 

defense It also requires that m
REPORT OF THE UNITED ST

with a trained and efficient citize

which have elapsed since the perm

office the Commission has endea

Under the authority of the Merc

amendments enacted thereto the 

States Maritime Service and revit

which had been provided for in 

Service is an agency of the Comm

under its supervision and rules a

the United States Coast Guard 

administrative personnel is com

remainder being attached to the C

Maritime Service offered a 3 mo

to experienced licensed officers a

privilege of returning 1 month e

Over 1200 officers and 5000 seame

At the time of its inauguration 

to man the existing merchant fleet

Subsequent to the outbreak of th

sion of the Commission sconstruc

that facilities should also be provi

sea going profession Plans were 

two training stations for apprentice

available by conversion of a forme

for the training machinery necessa

of officers and men for the Comms

tion program was thus laid prior 

The Commission expects to comp

ships by the end of 1943 App

ratings and 10000 officers will be re

are many factors which make it im

these vessels will be served by cit

some may be acquired by the milit

others may be transferred to foreig

ever that the majority of them w

of this country It is equally clea

be drawn from the ranks of those 

difficulty is expected even now in m

overseas trade routes At the sam

have been undertaken by the Navy 

to these urgent needs for maritime 

the Government The vast industr

the shipyards where men with 

employment attracts many men wh

428881414
20 REPORT OF THE UNITED S

The Maritime Service now h

apprentice training One of the

on land donated by that city to 

tion was opened on July 22 

Hueneme Calif on property 

with docking facilities donate

This station was dedicated on A

new stations the previously es

in New York Harbor and Gallop

ently utilized for apprentice 

namely Hoffman Island St P

an annual capacity for trainees o

is based on the number of men 

course at a shore station Upo

period the men obtain 4 mont

Commission straining ships

The Commission now operat

annual capacity of 3600 men u

course Iri view of the urgent 

mission has recently taken ste

ships Upon acquisition of the

have doubled the facilities avai

men or licensed enginemen T

can Seamen and the Joseph Co

the American Sailor attached t

State and Vema attached to H

smaller vessels are also used fo

The training station at Gallop

and a cooks and stewards sch

trainees can take the radio cour

About 508 radio operators a ye

The course given to the cooks a

and permits the graduation of 

In addition to the facilities 

Hoffman Island Station a spe

instruction in the use of protect

type of training is being exten

seamen and officers

The training of future office

Commission sconstruction pro

two training stations of the Ma

mission scadet training progra

ing State maritime academies 

York and Pennsylvania
REPORT OF THE UNITED S

The training stations for pro

Fort Trumbull in New London C

meda Calif The course of these 

and equips seamen with 3 years 

as junior officers The existing 

expanded to take care of increased 

In the Cadet Corps of the Mari

below a specified age limit are g

to sit for licenses as junior offic

of all applicants and those select

national competitive examination 

they are enrolled in the Merchant 

hours of instruction in naval scien

in the Naval Reserve after grad

training is given to each caclet up

schools maintained on the Atlanti

then assigned to merchant vessels 

training at sea Their progress 

structors when the vessel to which 

annual examinations are held T

caclet schools The present capacit

delivery of vessels in the Commis

cadets will be expanded Appro

graduated by the cadet corps dur

will be supplemented by graduates 

which are supervised by the Stat

mission

The cadet corps also conducts 

district offices at New York Balti

cisco This training is especially 

ditions when a great deal of comm

3148 officers and cadets enrolled 

awarded to 854 for proficiency an

Extension or correspondence cou

rine personnel while at sea The

Commission by the Coast Guard 

which holds examinations of the e

the Maritime Service and 158 a

been enrolled for these courses

INSUR

The worldwide disturbances cre

xegistered their effect upon all ph

least on that sensitive baromete
22 REPORT OF THE UNITED S

Although the Commission does no

of limited participation in the 

have made it necessary to provid

vessels acquired under the terms o

Enactment of this law approv

surance activities of the Commi

of foreign and domesticflag ve

against all hazards of marine an

demnity insurance The revolvin

carrying out the 1940 war risk 

chant Marine Act 1936 was m

under Public Law 101

The Couuuission sunderwriting 

groups First marine and war 

the Merchant Marine Act 1920 

ance authorized under the act 

Title II of the Merchant Marine 

and other insurance authorized un

Marine and war risk insurance 

and written during the present y

10 Merchant Marine Act 1920 

of business September 30 1941 w

These totals are made up of 1 m

with premiums of1276 392 76

89978 32 with premiums of 313

Insurance under the amendmen

Act 1936 has not been made a

ators and shippers generally f

underwriters have been able to p

ditions all necessary war risk i

The only insurance written unde

protection on seven vessels own

5

carry leaselend cargoes to the 

950 00 with a premium of 27

short time for certain underwrite

policies This reinsurance was n

quired the elimination of an obj

written on vessels mortgaged t

The American underwriters aft

the clause provided they would 

place that carried with English 

writers declined to delete the cl

substitution of another which w

mission accordingly provided t
REPORT OF THE UNITED S

arrangements could be made to p

For this reinsurance the Commiss

Sixtythree vessels have been 

the authority of Public Law 

54950 00 with an estimated pr

these vessels have also been ins

marine perils for an estimated a

mated premium of1625 000 T

transactions are not yet available 

in fixing the insured values for 

amounts insured on the crews a

reported

Insured marine and war losses 

ported during the present year 

the year ending September 30 1

the three groups into which the 

fall as follows

1 Estuuate

2 Relnsuranee

3 Represents 5 total losses due to war perils

Insuranc

SECTION 10 MERC

Carried over from laa yeir

Arising during year ended Sept 30 1941

Dtarine W risk

Carried over from last year

Reported during year ended Sept 30 1911

PUBLIC 

Reported for period ended Sept 30 1941

Marne estimate

War risk estimate

Grand total

Settled during year ended Sept 30 1941 

Total 

WAR RISK INSURANCE AMENDMENT 

ILRCI 

Recoveries effected on claims se

other claims of a marine insuranc

totaled 123 216 91for the year
24 REPORT OF THE UNITED S

War risk insurance rates for h

American and English underwrite

out the year on trade routes open 

standing the fact that of the five 

a foreignflag vesselwas sunk in 

canflag vessels in which the Co

surer The rates and terms at whi

in the commercial market have no

able When complaints have be

American underwriters have coo

tations and in a number of ins

increased their participation

The distribution during the la

markets of the insurance require

vessels is shown by the following 

The fund percentage is unusually high and the 

3 high valued vessels were insured a laree section of 

deposits in tins country If the fund could have be

have been 71 percent instead of 163percent

There has been a substantial in

vessels during the past year and 

greater percentage of insurance 

market as compared with last ye

settled world conditions which h

to transfer a substantial portion 

American underwriters There 

in the number of chartered vesse

subsidized vessels

In connection with the emerg

tion program the Commission ha

the shipyards or on the vessels 

been necessary however to prote

workmen scompensation public 

and such other forms of liability 

for any particular operation or 

Proposals for this insurance we

and from those companies that fi

nated the insurance carriers for 

under the emergency program 

Oct 25 1937

Oct 25 1938

Oct 25 1939

Oct 1 1940

Oct1911 

24 REPORT OF THE UNITED S

War risk insurance rates for h

American and English underwrite

out the year on trade routes open 

standing the fact that of the five 

a foreignflag vesselwas sunk in 

canflag vessels in which the Co

surer The rates and terms at whi

in the commercial market have no

able When complaints have be

American underwriters have coo

tations and in a number of ins

increased their participation

The distribution during the la

markets of the insurance require

vessels is shown by the following 

The fund percentage is unusually high and the 

3 high valued vessels were insured a laree section of 

deposits in tins country If the fund could have be

have been 71 percent instead of 163percent

There has been a substantial in

vessels during the past year and 

greater percentage of insurance 

market as compared with last ye

settled world conditions which h

to transfer a substantial portion 

American underwriters There 

in the number of chartered vesse

subsidized vessels

In connection with the emerg

tion program the Commission ha

the shipyards or on the vessels 

been necessary however to prote

workmen scompensation public 

and such other forms of liability 

for any particular operation or 

Proposals for this insurance we

and from those companies that fi

nated the insurance carriers for 

under the emergency program 
REPORT OF THE UNITED ST

tions is carried by the designat

guarantee minimum cost to the G

The following tabulation show

struction on which builder srisk 

the past 2 years and the distribut

markets

FEDERAL SHIP MO

During the year October 1 19

applications involving up to 630 

mission for commitments to insur

vessels to be constructed pursuan

rine Act 1936 as amended Thes

and commitments issued In th

previously issued were converted 

ance totaling 350 00

The aggregate of commitments 

ance issued since the enactment 

This total contingent liability ha

gage payments in the sum of 174

made during the year ended Octo

1941 there is outstanding a contin

sented by a balance of182156

insurance and 6500 0 uncler c

FEDERAL SHIP MORTGAGE IN

No Federal ship mortgage ins

issued to date In the event the 

should become fixed through de

the underlying vessels would be tra

issuance to the respective mortgage

under section 1105 of the act

Title XI of the Merchant Mar

that such debentures redeemable 

insurance fund and unconditiona

interest by the United States wer

interest at the rate of 23 percent 

estate inheritance and gift taxes 

Sept 30 1940 

Sept 30 1941 

REPORT OF THE UNITED ST

tions is carried by the designat

guarantee minimum cost to the G

The following tabulation show

struction on which builder srisk 

the past 2 years and the distribut

markets

FEDERAL SHIP MO

During the year October 1 19

applications involving up to 630 

mission for commitments to insur

vessels to be constructed pursuan

rine Act 1936 as amended Thes

and commitments issued In th

previously issued were converted 

ance totaling 350 00

The aggregate of commitments 

ance issued since the enactment 

This total contingent liability ha

gage payments in the sum of 174

made during the year ended Octo

1941 there is outstanding a contin

sented by a balance of182156

insurance and 6500 0 uncler c

FEDERAL SHIP MORTGAGE IN

No Federal ship mortgage ins

issued to date In the event the 

should become fixed through de

the underlying vessels would be tra

issuance to the respective mortgage

under section 1105 of the act

Title XI of the Merchant Mar

that such debentures redeemable 

insurance fund and unconditiona

interest by the United States wer

interest at the rate of 23 percent 

estate inheritance and gift taxes 
26 REPORT OF THE UNITED S

United States by any Territory 

or by any State county mun

This tax exemption feature was 

1941 to eliminate the privilege 

nection with commitments mad

March 1 1941

7

Since there was outstanding 

482 218 56of commitments to 

issued prior to March 1 1941 th

amount of debentures contingen

emption features prescribed by 

Marine Act 1936 as amended J

FEDERAL SHIP MORT

The balance in the Federal s

October 1 1941 amounts to 529

during the year Such increase 

the United States Treasury of c

of 8600 for charges authorize

and 7138 50 for premiums und

1734 on account of overpaym

earlier period

LITIGATION 

The Office of the General Co

of all claims by and against th

supervision of the Attorney Ge

in which the Commission is in

review 63 cases in litigation 

were disposed of while 25 cases 

were added to the docket The 

tober 25 1941 was 158 involvin

docket of litigation is composed 

of a few cases involving the form

poration predecessors of the Ma

The foregoing figures cover on

is directly involved and do no

Maritime Commission for othe

These cases are brought under 

1925 U S C Title 46 791 

tion include those operated by 

ment such as War Navy and Co

Guard Three such cases were 

The total number of such cases 

involving approximately 900 0
REPORT OF THE UNITED S

Due to conditions abroad litiga

countries have ben inactive

In previous annual reports the 

ress of certain important cases i

has been reported for the last sev

ment sship construction program 

involved a judgment against the G

The decision of the district cour

of Appeals for the Third Circuit 

the Supreme Court of the Unite

case will be argued in the near fut

Several cases in litigation inv

the Maritime Commission in regu

these cases the action of the C

three

order

suits

involving

were

certain

filed to

practices

restrain

minals Among other things t

shorter free time periods and inc

storage charges at San Francisc

issued an interlocutory injunction 

Twentysix claims not in li

80000 were pending on Oc

October 20 1940 to October 25 

mately 50000 were disposed of a

28000 were added or a net dec

There is set forth in appendix 

settled by agreement from Octob

required by section 12 of the Sui

REGULATOR

The terms of the Transportatio

terstate Commerce Commission t

engaged in interstate commerce 

portation between the continental 

Hawaii Alaska and the other pos

shift of regulatory authority was 

designated by order of the Inters

As a result of this transfer the 

has had an opportunity to supervi

riers and terminal operators and t

established in the various trades 

vessels The results of the invest

are shown in the following repor

428681415
28 REPORT OF THE UNITED S

Formal Docket

Four major investigations wer

Practices etc of San Francisco B

the Commission among other find

State and municipally owned te

and prescribed as a reasonable p

as minima for wharf demurrage 

service as shown by the record 

their tariffs with the Commiss

2 U S M C a general inves

tures including proposed increa

Alaskan trade With few excep

reasonable as a whole based on t

large shippers and certain unjust

unfiled tariffs covering services to 

and Alaska Steamship Company 

and water rates with Alaska Ra

rates with the Commission 3 

States 2 U S M C 426 nine o

found to allow shippers to obtain 

rates by means of false billing of 

describing in bills of lading a g

Prosecutions related to such fals

Department of Justice the first 

assessment of fine of 5250 4 

Philippine Islands 2 U S M C 

have falsely billed textiles and six 

transportation of such falsely bi

rates The Commission scertifica

cution are now pending before the 

As in the two last mentioned 

Nicholson Unirerxa7 Steamship C

Duluth Transit Co and Clarenc

found to be allowing transportat

this case the respondent carrier 

excessive compensation for steve

der common control and owners

a consignee and distributor of a

tified to the Department of Justi

Schedules containing increased 

of cases in addition to the Alas

in the later case the schedules 

obviating a hearing

Suspension was also made in 

restricting steamship services A
REPORT OF THE UNITED ST

were found not unlawful See GP

York and Porto Rico Steamship C

Cancelations and Restrictions 2 SMC

were conducted into the awfulnes

riers In Embargo on Cargo Betwe

2USMC464 the embargo estab

found unreasonable and ordered ca

at Camden N J 2 USMC491 

Atlantic Steamship Corporation w

The rights of carriers to membe

involved in two proceedings In 

Limited et al 2USMC529 co

to membership and in the other cas

the matter going to a hearing A

agreement was In the Matter of Th

ship Company Waterman Ste

2 USMC453 wherein it was 

tween Porto Rico Line and Wate

tinued service from Gulf ports to P

Waterman and agreeing not to re

approval by the Commission

Jurisdictional questions were di

tion to the Alaskan and San Fra

tioned In In Re Inland Waterw

Palley Barge Line Co 2 USMC

that carriers operating barge line

joining in through routes with i

carriers in intercoastal commerce 

American Hawaiian Steamship C

the Commission had no jurisdictio

to award damages because of carris

ship ou a particular voyage

New and novel questions were pr

instance in Patrick Lumber Co 

et al 2USMC494 involving de

laid down the principle that distrib

stringency based upon the relati

offer lumber on hand and conven

arcing into consideration the righ

to be just and reasonable In Lon

solidated Lumber Co 2 USMC 

tain complainant sallegation tha

refused to accord delivery of lumb

picketed by labor unions In Am

Italia Soeieta Anoninna Di Navi
30 REPORT OF THE UNI TED 

mission decided that duties of 

provisions of Shipping Act 19

broker seeking reparation for br

as a broker because of carrier s

plainant srequest

A terminal company and a 

found to have violated section 20 

Francisco Bay Terminal and N

above The former knowingly 

gave without shippers consent 

of shipments which may have 

shippers

The remaining cases dealt w

minations as to the reasonablenes

tions Outstanding among these 

Insular Line Inc et al 2USMC 

demned rate equalization practice

Eleven formal complaints were 

upon the Commission sown moti

on October 1 1940 Twentytw

cases and 22 proposed reports 

were had in 8 cases Fifty cases 

order A complete list of cases 

opinion is shown in appendix 

October 1 1941 Of 7 petition

denied 1 granted and 1 withd

closed cases were transferred to t

on March 1 1941 pursuant to the 

Shortened Procedure

There were 6 cases handled un

complaints are disposed of by th

by memoranda thereby avoiding 

cases were decided

Informal Docket

Three cases were filed under 

tained to adjust controversies wit

closed and one was transferred t

sion Of those closed one develo

Special Docket

Nine cases were filed under th

dure the carrier admits the unrea

if a sufficient showing is made 

granted to award reparation F

pending
REPORT OF THE UNITED ST

Interstate Filings

During the period 2689 tariff s

charged were received for filing 

for failure to comply with the noti

mission sRules governing the con

203 Letters were written to carriers 

Under authority granted by the 

coastal Shipping Act 1933 as am

cations requesting the Commissio

than statutory notice or to mo

granted 14 were denied 3 were g

and 9 were filed without action

Sixteen rate adjustments propo

tested Of this number 6 were sus

an investigation of the lawfulnes

pension was denied in 6 cases 2 we

out action

Effective March 1 1941 a total 

filed by 201 coastwise and intercoa

cable by water from one State to 

together with suspension matters 

tariff criticisms powers of attorn

ments and office equipment were 

merce Commission in accordance w

Act of 1940

A total of 89 freight and passe

their agents covering operations 

and its territories and possession

A revision has been undertaken 

No 1 containing rules and regu

posting and filing of tariff sche

between United States ports and 

Agreements Filed Under Section 15 Sh

Section 15 of the Shipping Ac

or agreements entered into by ca

subject to the act and still covere

of rates the controlling of comp

earnings or traffic allotting ports 

acter of traffic shall be filed with 

When approved the parties to s

respect thereto from the provision

All agreements so filed are care

evidence of unjust discrimination 

merce or violations of the shipping 
32 REPORT OF THE UNITED S

carried on between representative

to agreements prior to formal a

result that many of the objec

changed and the agreements fin

expense Each agreement may 

before or after approval In ei

given an opportunity to be hear

Since the outbreak of war in 

subjected to many violent shocks 

any semblance of peacetime st

ferences which originally opera

pended The type of service off

employed have shifted on many 

have been compelled to disconti

because of immobilization seizu

national purposes The Comm

counteract the shortage of tonn

routes and sailing schedules As 

conference agreements and also 

schedules use of ports and othe

fied suspended in part or replac

that the carriers have made eve

system by permitting members w

withdraw their services to remain 

rights on current questions

The Transportation Act of 19

latory jurisdiction over coastwise 

1 1941 On and after that date t

had jurisdiction over all of the p

any agreements which these carri

subject to section 15 of the Shipp

mission therefore on March 1 

Commerce Commission 1045 ag

transhipments between coastwise 

engaged in foreign commerce

From October 1 1940 to Sept

fications and cancelations were a

were on file 688 effective agreem

ments 28 pooling agreements a

rates and practices

Foreign Rates and Bills of Lading

During the period under revie

suant to an order dated July 12 

by water in foreign commerce to 
REPORT OP THE UNITED STA

transported from continental Un

tinations This substantial decreas

as compared with the previous yea

ber of ocean carriers engaged in th

larly to the efforts made by the Co

There were also 93 rate filings made 

January 26 1939 requiring comm

rates and charges on cargo transpo

America to the Pacific coast of the 

filings were received from steam

inward and other trades not subje

A total of 214 terminal filings 

period covering rates and charges 

free time and other terminal cha

new and two revised billoflading 

the uniform through export bill o

tions contained in an order dated 

Reference has been made previ

mission sefforts to prevent an unw

spectacular increase in transportati

the last World War A close sc

September 1939 over the rates fi

well as those by individual lines 

inadequate to handle the demands 

tions were issued by the Commis

structions directed the various f

Commission in advance of any c

accompany this notice with a state

the proposed increases

While these instructions served 

increases put into effect they did 

rate level By May 1 1941 the C

portation charges had reached the 

ing conditions and gave notice to 

the United States and to the freig

the European war zone This wa

20 1941 calling upon these carrie

diately any increases in transpor

been made effective on or after M

however for allowing increases o

facts warranted An intensive ex

of all rates on file with the Connn

instructions Those instances wh

apparently acted contrary were ha
34 REPORT OF THE UNITED 

concerned although certain spe

granted after investigation re

general tendency of the notices 

1941 was to freeze freight rate

of this year

Special Investigations

The Commission has a small 

field investigations of alleged 

Shipping Acts During the pe

were made and additional wor

previous period The more imp

tions of the Shipping Act 191

United States to South Americ

than established rates from the 

of the rules and regulations of t

19 Investigation 1935 1 U S S 

TRANSFER OF VESSEL RE

The sale of American owned 

registry during times of emerge

cussion in view of the need o

approval by the Commission 

required by section 9 of the Sh

of the same act during the eme

dent in his proclamation of May 

The authority granted to the 

transfer of vessel registry or sa

care in order that constitutiona

may not be abrogated The Co

the maintenance of a vessel in a 

tied up or scrapped at the will 

tions the Commission does not s

of the vessel owner who desire

Such action would be inconsiste

When an emergency exists h

in the maintenance of a merc

national defense and needs of c

be given due weight in conside

registry and sales to aliens W

shipping shortage tended towar

foreign registry where a vessel m

try by retention under the Am

appeared that our best interests 

transfer or sale In this conne
REPORT OF THE UNITED STA

37 of the Shipping Act does not p

under emergency conditions and 

approval to legislation introduced 

discretionary power into an absolu

case presented to the Commission 

involved and the decision made b

experience and careful evaluation 

The tabulation appended to thi

having a gross tonnage of 450 3 

ownership andor registry and fla

mission for the period October 2

majority of the vessels from the 

two groups The nonsubsidized 

vessels

The 28 Maritime Commission 

review were withdrawn from the 

purchasers in all cases were repr

and the vessels were destined for u

flag tonnage was barred at the time 

these vessels when transferred to 

American flag tonnage and continu

can shippers and trade

The greater portion of the nons

ing the period were removed fro

seriously overtonnaged with obso

present war Reference to the ta

indicates that the average age of 

ferred to foreign registry was app

Statement showing type number gross 

by U 2 Maritime Commission for tra

and flag pursuant to sections 9 and 4

for period October 26 1940 to October 

1 Sailing vessels

2 1neaand barges

3 Pleasure vessels yachts etc

3a Pleasure vessels undocumented of leas than 5 ne

4 Tankers

5 Commercial vessels under 1000 gross tress fish

motorbnots etc

6 Commercial veels over 1000 cross tons cargo 

cargoPasrenger

n Subsidized Proceeds reserved for new co

8 Sonstbsidized proceeds reserved for ne

tion

c Nonsuhsidized

1 U S M 0 vessels

Total

Sales not consummated

Vessels redoeumented under United States laws

REPORT OF THE UNITED STA

37 of the Shipping Act does not p

under emergency conditions and 

approval to legislation introduced 

discretionary power into an absolu

case presented to the Commission 

involved and the decision made b

experience and careful evaluation 

The tabulation appended to thi

having a gross tonnage of 450 3 

ownership andor registry and fla

mission for the period October 2

majority of the vessels from the 

two groups The nonsubsidized 

vessels

The 28 Maritime Commission 

review were withdrawn from the 

purchasers in all cases were repr

and the vessels were destined for u

flag tonnage was barred at the time 

these vessels when transferred to 

American flag tonnage and continu

can shippers and trade

The greater portion of the nons

ing the period were removed fro

seriously overtonnaged with obso

present war Reference to the ta

indicates that the average age of 

ferred to foreign registry was app

Statement showing type number gross 

by U 2 Maritime Commission for tra

and flag pursuant to sections 9 and 4

for period October 26 1940 to October 
36 REPORT OR THE LNI IED 

Statement shooing nationality num

by U S Maritime Commission for 

and flag panenant to sections 9 and 

for period October 96 1940 to Oct

Under section 30 subsection 

the approval of the Commissio

of the marine document of a ves

by an approved mortgage whe

hone port of the vessel is named 

ment of the vessel necessitates 

under review the Commission a

document of 210 vessels This 

tion of an accurate record of eac

GOVERNMENT

In the last annual report to C

tion to the termination of op

account of the Government for 

marks the closing down of th

had existed for a similar period 

remained 63 vessels tied up a

Md Fort Eustis Va New O

During the course of the period 

sold of which 33 were transferr

sold to a domestic operator with 

new tonnage and 1 each was tra

The remaining vessels in the 

dition and are now serving ou

tenance forces formerly require

state of preservation to make 

been disbanded at three of the 

retained at the James River site 

pier and anchorage in case of fu

The vessels placed in operatio

chartered to steamship compan

needed strategic materials or a

carrying leaselend cargoes

Number of vessels Total tonnag

gr

Argentinian 687

Brazilian 781

British 230 

Canadian 899

Chilean 

Costa Rican 

Cuban 

Honduran Guatemalan 7 

Irish 1

20

Mexican 260

36 REPORT OR THE LNI IED 

Statement shooing nationality num

by U S Maritime Commission for 

and flag panenant to sections 9 and 

for period October 96 1940 to Oct

Under section 30 subsection 

the approval of the Commissio

of the marine document of a ves

by an approved mortgage whe

hone port of the vessel is named 

ment of the vessel necessitates 

under review the Commission a

document of 210 vessels This 

tion of an accurate record of eac

GOVERNMENT

In the last annual report to C

tion to the termination of op

account of the Government for 

marks the closing down of th

had existed for a similar period 

remained 63 vessels tied up a

Md Fort Eustis Va New O

During the course of the period 

sold of which 33 were transferr

sold to a domestic operator with 

new tonnage and 1 each was tra

The remaining vessels in the 

dition and are now serving ou

tenance forces formerly require

state of preservation to make 

been disbanded at three of the 

retained at the James River site 

pier and anchorage in case of fu

The vessels placed in operatio

chartered to steamship compan

needed strategic materials or a

carrying leaselend cargoes
Nationality Number Goss ton

Danish Italian German Estonian Rumanian Total

402411 12s4240259041 626 324 

67 262 141 

REPORT OF THE UNITED ST

During the past year the Com

place in operation all idle tonnag

registry A primary concern to t

of foreign flag vessels immobilized 

its possession Authority to oper

our defense efforts having been g

Commission took immediate steps 

them to commercial service speci

tary branches of the Governmen

the number nationality and ton

Commission under Public Law 1

Foreign 4oquvnlion s

Sixty three of the vessels listed 

already been assigned for service 

Army and Navy Four vessels ha

were declared forfeited because of 

to their being taken under prote

The amount of compensation to b

yet been determined

Public Law 101 provided for th

Commission and the Department 

placed by the taking of any ship u

procedure adopted by these depar

mitted to the Congress in July 19

As the seamen on board all the G

removed prior to the date of takin

obligation to make provision for 

issued by the Commission in Augu

tion of just provisions to the sea

vessels

In addition to the foreignflag 

sion as outlined above a number 

domestic trade have been purchas

operation The Commission also 

four of its old vessels which had 

Lines in 1939 for the India servic
38 REPORT OF THE UNITED 

On October 1 1941 the Comm

915 349 deadweight tons engag

With the exception of three requ

ated under an agency agreemen

Commission under bareboat cha

list includes Commission vessels 

owned lines other ships withdr

immobilized foreignflag vessels 

menting the foregoing fleet of 

routes by American steamship 

ships owned by the Maritime C

Navy Departments delivered to t

under the Lease Lend Act or a

ministered by the United States 

The Commission svessels are 

charter party agreement In a 

chartered for a route line or se

ding under section 705 of the Me

number have been chartered with

ators on specific trade routes in 

Public Law 46 Seventysixth C

mission to waive the requiremen

emergency The remaining ves

foreignflag tonnage have been 

Public Law 101

In selecting operators to han

registry the Commission has give

and operators who have coopera

ican merchant marine and parti

vessels they had acquired for the 

Government

TER

terminal

The gross

properties

revenue

for

derived

the year

fr

18 percent over the similar perio

This excludes the Brooklyn Term

Department on January 31 1940 

for 1941 showed a disproportiona

This is attributable to certain 

earlier year which were charged 

nating these two extraordinary i

maintenance and administration 

past few years Further inform

which have occurred during the 
REPORT OF THE UNITED STA

and a complete statement of reven

years is appended

Boston Terminal

The installation of gantry crane

1940 have facilitated the handling 

has been of particular importance 

lendlease and other export cargoes 

in the operations of this terminal 

Hoboken Terminal

A lease was made with the Pan 

subsidiary of Waterman Steamsh

pancy of pier No 4 for a period of 

1941 at a rental of T0000 per ann

25900 or 59 percent over the renta

Through competitive bidding T

awarded a lease covering the occ

between pier No 4 and pier No 6 

yard for a period of 5 years com

rental of 31500 per annum

The Counuission approved the s

ary 15 1941 between Marra Bros 

Tietjen Lang Dry Dock Co Th

shall be used for overhead ship rep

Norfolk Terminal

On May 1 1941 the Commissi

Department to occupy warehouses 

tion of pier No 2 and all the lands 

Main Street and North Street exc

tanks and pumping facilities for th

additional warehouses

1ernnnai

Bostonrooklyn Hoboken

Philadelphia

Norfolk

Total

leerenue sand expenses Yea

Revenues

1939 1940 1 1941 

1 881 964 111 000 in0l75 8185 097 

191 062 20549 2340114 

205 670 250 4181 22 

122 31 4109101 276 615 

712 020 500 4081 922 879 

2 Based on fixed rental 08111period Oet 1 1938 

July 1 1939 to Sept 311 1939

1 Italic figures denote deficit

a Brooklyn terminal re urned to War Department a

4 Based on fixed rental 113 600period Oct 1 1939 

July I 1940 t0 Sept 30 1940

NOTEMaintenance operation and administrativ

of the Washington once
40 REPORT OF THE UNITED 

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42 REPORT OF THE UNITED 

APP

Summary of income and expenses an

1940 to 

Construction fund 69X0200

Income Charter hire 

Real estate and terminal revenuesnet 

Interest earned 

Excess of various insurance premiums ea

Net profit from sales of vessels old tonna

Excess profits on construction contracts a

Miscellaneous 

Total income 

Erpenses and Charges

Laid

Operations

up fleet

of vessels

expenses

including

net

Spot ve

Seaman straining expenses United State

and GeodeticSurvey ships officers assig

Construction differential subsidies 

Operating differential subsidies 

Depreciation and revaluation of vesselsn

Uneolleetible receivables 

Transfer of vessels and other assets to oth

change of funds 

Increase in provision for Marine insuranc

Miscellaneous charges 

General administrative expenses

Salaries and wages 

Fees and expenses for outside services 

Traveling expense and transportation 

Rent heat light and power 

Communication expenses 

Once supplies stationery and printin

Miscellaneous 

Equipment 

Total expenses and charges 

Excess of expenses and charges ove

1990 to Juno 30 1941 
cz

I

REPORT OF THE UNITED ST

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314 000011

803

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67

302 196

006 33 600007

695

58

I

5

092

354 42

15006

937 50 299 000

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I

14

707

937 50 00008 02381 199 132 817 70 

REPORT OF THE UNITED STA
mod

0f 3FL 0000 161 06119Z W1

July

1

1990

to

June

30

1941

01 0000 tfL

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July

1

1939

to

June

30

1190

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July

1

1938

to

June

30

1939

00

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Oct

26

1936

to

June

30

1938

ca 

ONSTRUCTION

FUND

UNITED

STATES

MARITIME

COMMISSION

ACT

OF

JUNE

20

1938

REVOLVING

FUND

AND

ALLOTMENTS

continued

efense

aid

administrative

expense

allotment

to

United

States

Maritime

Com

missionAllotments

from

Defense

aid appropriations

Disbursements Balance lummary

of

available

funds

on

deposit

at

close

of

fiscal

year

Construction

fund

United

States

Maritime

Commission

act

of

June

29

1936

revolving

fund

and

miscellaneous

appropriations

Fede

sh

mortga

Insuran

fun

46 REPORT Ob THE UNITED 

transfers

collections

and

disbursal APPENDIX

BContiuued
REPORT OF THE UNITED STA

i E

e a
Under

construction

Including

awards Disburse mentsI

to

Oct

1

1941

88

00 0 

Estimated completion 0osts 7824 033 75 A

ROA

ORR

nn

2

226

089

00

2

818

8

1272

487 00

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edicts

Disburse ments to

Oct

1

1941 32200 78 00 17

RA0

87

Estimated completion costs 2611 760

25

1R

002

8A0

32

8

P0

774 29

10

430

504

39

14

110

215

39

22

edgy 

Shipyard

Sc

le

a0ppna

h REPORT OF THE 

Long range

program

as

at

Oct

SCHEDULE

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Under

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3S 0154

278

672

32

2

056

484

13 9I

02I

9f

0

800

424 80

1

457

400

81

Number

oft

Estimated

Type

cossets

completion costs

50

085

000

000

25

92

500

000

000 231

13

j

22100 0

25

42500 0

0a

9 10

0W

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prv fdlgS

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COAST

Bethlehem

Fairfield

Shipyard

Inc

North

Carolina

Shipbuilding

Co

Total

East

coast

011 1

COAST

Alabama

Dry

Dock

Shipbuilding

Co

Delt

Shipbuildi

Co

Inc

50 REPORT OF THE UNITED 

Ship

construction Emergency

ship

program

as

at

Oct

1

1941
REPORT or 4111E UNITED S 

co

CO

2

oco
52 REPORT OF THE UNITED 

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ad

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to

Oct

15

1941 8 8 8 8 

8sd M8to 

b a n 8 8 

a 46 M W 

27

m 

Long

range

program

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Defense

aid

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of

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program Pus

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PORT OF THE UNITED STA

APPENDIX

D
54 REPORT OF THE UNITED 

Sales of shipsLovera

Purchaser

Completed Alcoa S S Go Inc

American Export Lines Inc

American President Lines Ltd

race Line Inc

Lykes Bros S S Co Inc

Mississippi Shipping Co Inc

Moore McCormack Lanes Inc

New York R Cuba Mail S S Co

Pacific Atlantic S S Co

Sens Shipping Co Inc

United Mail S S Co

United States Lines Co

United States Army

United States Nat y

Total sale of ships completed

Under construction

Alcoa S S Co Inc

American Export Lines Inc

American Mail Line Idd

American President Lines Ltd

American South African Tine

Bull A II S S Co

Grace Line Inc

Id hinian S S Co I n c

Lykes Bros S S Co Inc

9Lssissmpi Shipping Co Inc

21 ow eMcCorma ek Lines Inc

Nen Yolk Cuba Mad S S Co

Seas Shipping Co Inc

Mileti Slates Lines Co

Total sale of sings under construct ion

Total sale of ships completed and under

conshuction

AED
APPEN

Tessels over 20 years of age on which a

paid daring the period from 

mrri nn Export 411mo lac

merit 0 1811 line Ltd

imeuean lrew Lines I

lmeumn South fne nl Line Inc

1010 Line Inc

681 3n 11901111 I 1

Iisni iPpi hipping C9 Inc

Y1 oore 7loConnaek 1xis 1110

Oceanu steamship Cu

Seas Shlixpule ro

United States Liues C1

Total

REPORT OF THE UNITED ST

Name of contractor 

N 0111 nee

1 3303110 xe

1441013 hrll

140mom

I Carm

Crow n C

11991 n lm ln

l81 1 

I1 119 Inro

hx

01llr1

Clio II 

110019 

8 1l 1311

Ill lr

11

143

9 W

0111 

1301111 

1 1 1 

le11In

111 0 

1T1 m 

1 ounfl

1Eon 4 

13213 

t 

1141 

7

111 O 

0011 4 

1194

1911 

11111 1111 d

7larm

71111111 81

Jul011

lon ceel 110

11 

11 

19180 11011

1

1 

011 

If n1I1 Ho

10 10

lcll

180 1 11 

Inap 

081i889

Toner 

Tai per O

Tampa 

1193st

41

Ifon

11 

Yomachic
56 REPORT OF THE UNITED 

APP

ABSTRACT OF FORMAL DECISIONS ENT

Intercoastal Rate StructurMixed 

Go 2 U S M C 506 Respondents 

spect to mixed carload shipments fo

to the establishment of rules regulat

eral than those maintained by tran

Grays Harbor Pulp tt Paper Co 

U S M C 366 modified 2 U S M C 

from Grays Harbor Wash to ports 

unjustly discriminatory hut not othe

to establish an agreed schedule of ra

In re Inland Waterways Corporati

2 U S M C 458 Respondents found 

coastal commerce and engaged in the 

on a through route as defined in se

1933 Reduction in the rate on alco

United Can Co v Shepard Steams

tinplate tops and bottoms from Phila

unreasonable Reparation awarded

Jos G Neidlinger Co v American 

Rate on teasels in less carloads fro

Pa found unreasonable Reparation 

In the Matter of Conference Agree

velop any violation of law

Gulf Puerto Rico Rates Via the N

2 U S M C 410 Cancellation of se

to Puerto Rico found not unlawful

Agreements of Nicholson Universa

Co with Duluth Transit Co and Clare

Nicholson found to have allowed Hol

to have knowingly and wilfully obt

Detroit Mich to Duluth Minn at 

violation of section 16 of the Shippin

the Intercoastal Shipping Act 1933 

Respondent Nicholson found to ha

ence in violation of said section 16

Respondent Nicholson found to ha

be acquired and respondent Duluth 

ingly received information in violati

No violation of sections 14 and 1

tablished

Practices eto of San Francisco 

Respondents including State and m

defined in the Shipping Act 1916 a

operating under agreements or work

section 15 of said act without a

tice of Encinal Terminals of collectin

D eight discharged at other terminals 

able in violation of section 17 of sa

received information in violation of s

and municipal terminals of making 

unreasonable Changes should not h

good cause exists for shorter periods 

practices regarding free time are un

reasonable in violation of sections 16 

able regulation prescribed 7 Resp

tices relating to wharf demurrage an

preferential and unreasonable in viol

said Act Reasonable regulation pre

tariffs with the Commission in orde

forced In the Matter of the New York a

Steamship Corporation Agreement 2 
REPORT OF TIHE UNITED STA

spondents found subject to section 15 of t

out thereof without the Commission sapp

S I1 Kress Co v Baltimore Ma

et aL 2 U S M C 450 Rate on can

Hawaii found unreasonable Reparatio

the future prescribed

In the Matter of Rates Charges and P

front Japan toStates 2 U S M 

obtain transportation at less than the r

false billing unduly and unreasonably p

and collect rates and charges which are 

pers in violation of sections 16 Second 

respectively of the Shipping Act 1916 

dome Novelty Co v4mericanI7atcrrii

412 Rates on canes from New York 

Angeles Harbor Calif found not unreas

The People of Puerto Rico v Waterm

Bros Steamship Co Inc 2 U S M C 

by the parties request for withdrawal 

discontinued

City of Mobile et a7 v Baltimore Tn7

Particular tariff under which on shipme

States to Puerto Rim the combination of 

ports found not published as required by 

Act 1923 said tariff and practices ther

in violation of section 18 of the Shipping 

undue and unreasonable preference and 

lation of section 10 of the latter act C

Notional Cable and Metal Co v Ame

M C 470 Rates on automobile battery 

to Norfolk Va and Philadelphia Pa 

determined and complaint distui

Baker Dri rra aarp Co In r v AMC 

plainant srequest to withdraw complaint 

aln krnr Rates 2 U S M The 

Rate Investigation No 2 1 hate bas

ents Alaska Stemnsh ip Company North

Transportation Company and Santa Aim 

under proposed rates determined 2 

fair return as to certain respondents and 

3 Respondents rate strnrtnro as 0 

4 Increases in rates on 00101110 1110 

Freight N 0 S rates to the extent th

pended schedules under item Freight N 

lawful 51 Special rates to large ship

preindieial and preferential 6 compl

proforenee to Seattle not sustained 7 

socalled irregula ports for which po 

Commits ion jurisdiction and repondeut

sions of bills of lading etc affecting r

inenrpnrmed in tariff 19 Ite 

cancel joint rail and water rale main

lien ibet enf publish and file with the 

10 Common carrier Iltrief of rennin 

Port Conan isrimt of it of Beaumont T

2 U S M 7 500 Defendants ah nrplinn 

thereof found to be in violation of soel inn

as attended Cease and deiorder ente

48 Telephone Co Ltd v T rrrtr

512 hate 011 telephones switehhon yds 

e0ble Cotnplt int di mil ssed

The fort of Beaumont Tr r et alvlg

et al 2 P fi I C 515 1rqpor iennl 

carloads from Houston and Galveston T

applicable on shipments originating at 

dismissed
58 REPORT OF THE UNITED 

Intercoastal Cancellations and R

vacate suspension order granted in 

justified except as to Richmond Ca

Tone Star Bag d Bagging Co Inc 

Gulf Lines 10 2 U S M 1 468 

delphia Pa to IIouston Tex found 

Complaint dismissed

Roive Service Co Inc v AmeHaw

Rates on coin operated vending ma

N J to Los Angeles harbor Cali

dismissed

Patrick Lumber Co v Calmar S

494 Complainant found 10 be un

furnish cargo space accommodations 

R IDPon tde iNen ous 1 Co i

527 1taie on synthetic indigo paste 

Pa to 13ouston Tea found to be u

Rates Charges and Practices o

Connection 11ith Freight Traffic t

2 U S M f 535 Respondent car

at less than their regular rates cu

of false billing and unduly prefer 

violation of section 16 Second 

Act 1916

Respondent shippers obtain tran

billing at less that the rates which 

of paragraph 1 of section 16 of the 

Cease and desist order entered a

for prosecution

Plorab Tool Co v American Flara

ments of composition tool handles f

Calif found to hove been overe

immediately Tarrowe Milling Co trade nam

more Insular Line Inc and Bull 

on commercial mixed feed and dr

Baltimore Md to ports in Puerto R

Complaint dismissed

Rcrricr son Wool and 3fohair Pro

vaahdbecause suspended schedule 

Super Phosphate Rock From A

vacated because suspended schedule 

Atlantic S7p np Refining Co vTne

521 Defendant sfailure to fulfill 

nection with shipment of syrup fro

found to be as unreasonable pract

Fflertrical Products Corporation v 

defendant complaint dismissed bec

vided in section 22 of the Shipping A

American Union Transport Inc 

2 U S M C 553 Under the regu

defendant owed no duly to t hanker 

and for alleged injury to the brokes

to book shipments upon the broker s

TiLp im Furniture On Inc v 4 m 

517 Motion granted to dismiss o

for reparation for damage to ship

specified voyage

Sig icd Olsen v Blur Star Lin

ants refusal to acdmit complainant 

1 ion in exclusive patro contract

tory as between complainant and 

undue prejudice and disadvantage 

of the conference agreement if co1a

membership therein
REPORT OF THE UNITED STA

Grain and Grain Products From and 

vacated because suspended tariff items w

Embargo or Cargo Bet ream North A

464 Embargo by Agwiiines Inc Clyd

offered for transportation between TJ 8 

om the Gulf of Mexico found unreason

O78rn tE Co v AlooreRornra

cause 0014 14111 11114111 was admitted to cmtf

Embargo on Cargo at Camden N I 

Atlantic Steamship Corporation on all 

to from and via Canub nN J found 

Long Brach Lumber Co Inc v Co

Defendant whm1 operator found D

to complainant Complaint dismissed

aro ox Harbor Exportation Co Inc 

Proceeding dismissed as complaint satis

No 426 Northeast Canners Assoc atin

No 462 Ani crinse Steed Col pora ion et a

No 466 Carnation oet al v AktiescsI

No 489 Rosenberg Brov d Co et al v 

California Fruit Exchange et 01 v B

California Prime and Apricot Growers

et al and No 497 S1111oiis E French Co 

iomparpri The East Asiatic Co Lt

the affirmance by the United States Su

Commission sorder in No 454 Sun sta

A 1 10areness d Co A S or al wh

0though No 514 fo tercoastal Rate 

1 1940 five supplemental orders were 

the date the proceeding was iron ferre

mission
Unicoi American Insurance Co et 

Claimant or respondent

CASES COVEREI BY OUTSIDE PRO

Vessel Claimant 

City of Dalhart

City of Flint

Cold HIarbor

Collamer Collingsworth

Independence Had

Lehigh New Orleans

Pipestone Do County

Potter Quaker City

Southern Cross

WestDoCusseta

West Imboden

Unicoi Wichita lomachichi Do

Michael Smoler

Arno C Garnet

James C Blake

Frank Masin

Augusta Foley as guardia

ad litem of infant Edward 

JohnFoleyMellon

Isaiah Harris

Frederick G Ernst

Pau Sehwa be

Nathan Maron

Thomas P Cronin

Joseph A Stein

John Atkins

Fred Gossler

Henry Odgaard

William Jameson Co an

J L Hudson Co

Michael McDonald

Edward De Allaume

William Wolfe

Fred E Bond

Vessel Claimant or respondent 

Canulin City of Elwood

McKeesport

Owners of tug Wapiti

Richfield Oil Co

Messrs C E Macauley

Co Ltd

60 REPORT OF THE UNITED 

ApiN

Claims arbitfated 07 settled under S

Oc

PERSO

Vessel

Brazil

Crown City

Washington

Capn inFaraby Sr Ernest

Jeff Tchfgh Sawokla LehighDavis

Challenge

City of Elwood

Sawokla

Unknown

Claimant or respon

Sidney M Albert 

A lock Perez 

Ralph Miner 

Victory Ilarrison 

Mersey Powing Co

Trafakalaeholagez

Oselosund Canada Or mgesherg S5 Lines Ltd

Joseph Schaefer Son

War Department

U E P k I Arnett

Meseck Towing Lines nc

CO

CARG

J Nn Sons Ltd

Leghorn Trading Co The

Amor ean Cyanamid Che

poration

GENER

MISCE
00001B

y

ro

ag4

0

sluwMPIPLW

d

g

4 

2 am 

s7Asodoa

9

l

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pomade o

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American

Ems

t

Lams

Inc

American

President

Linos

Ltd

American

South

African

Tine

Inc

Grace

Line

hue

Uehnc

c

REPORT OF ms UNITED ST

L

f

2 L4

cc 2

APPENDIX

I
62 eme OF THE UNITED 

a2R82

1221 

snitct

CC

2

e