An Act to amend the Shipping Act, 1916, as amended, to authorize ocean common carriers and conferences thereof serving the foreign commerce of the United States to enter into effective and fair dual rate contracts with shippers and consignees, and for other purposes
PL 87-346 (H.R.6775), enacted 10/03/1961

762 
PUBLIC LAW 87-346-OCT. 3, 1961 
[75 S T A T . 
Public Law 87-346 
October 3, 1961 
[H. R, 677S] 
S h i p p i n g Act, 
1916, amendment s. 
40 Stat. 903. 
46 u s e 842. 
F o r e i g n com-
merce. 
C o m m o n carri-
ers, dual rate con-
tracts. 
AN ACT 
To amend the Shipping Act, 1916, as amended, to authorize ocean common car-
riers and conferences thereof serving the foreign commerce of the United 
States to enter into effective and fair dual rate contracts with shippers and 
consignees, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That the Shipping 
Act, 1916, is amended by adding after section 14a a new section to read 
as follows: 
"SEC. 14b. Notwithstanding any other provisions of this Act, on ap-
plication the Federal Maritime Commission (hereinafter 'Commis-
sion'), shall, after notice, and hearing, by order, permit the use by 
any common carrier or conference of such carriers in foreign com-
merce of any contract, amendment, or modification thereof, which is 
available to all shippers and consignees on equal terms and conditions, 
which provides lower rates to a shipper or consignee w^ho agrees to 
give all or any fixed portion of his patronage to such carrier or con-
ference of carriers unless the Commission finds that the contract, 
amendment, or modification thereof will be detrimental to the com-
merce of the United States or contrary to the public interest, or un-
justly discriminatory or unfair as between shippers, exporters, im-
porters, or ports, or between exporters from the United States and 
their foreign competitors, and provided the contract, amendment, or 
modification thereof, expressly (1) permits prompt release of the 
contract shipper from the contract with respect to any shipment or 
shipments for which the contracting carrier or conference of carriers 
cannot provide as much space as the contract shipper shall require on 
reasonaole notice; (2) provides that whenever a tariff rate for the car-
riage of goods under the contract becomes effective, insofar as it is 
under the control of the carrier or conference of carriers, it shall not 
be increased before a reasonable period, but in no case less than ninety 
dajs; (3) covers only those goods of the contract shipper as to the 
shipment of which he has the legal right at the time of shipment to 
select the carrier: Provided^ however^'T\\?ii it shall be deemed a breach 
of the contract if, before the time of shipment and with the intent to 
avoid his obligation under the contract, the contract shipper divests 
himself, or with the same intent permits himself to be divested, of the 
legal right to select the carrier and the shipment is carried by a carrier 
which is not a party to the contract; (4) does not require the contract 
shipper to divert shipment of goods from natural routings not served 
by the carrier or conference of carriers where direct carriage is avail-
able; (5) limits damages recoverable for breach by either party to 
actual damages to be determined after breach in accordance with the 
principles of contract law: Provided^ however^ That the contract may 
specify that in the case of a breach by a contract shipper the damages 
may be an amount not exceeding the freight charges computed at the 
contract rate on the particular shipment, less the cost of handling; 
(6) permits the contract shipper to terminate at any time without 
penalty upon ninety days' notice; (7) provides for a spread between 
ordinary rptes and rates charged contract shippers which the Com-
mission finds to be reasonable in all the circumstances but which 
spread shall in no event be more than 15 per centum of the ordinary 
rates; (8) excludes cargo of the contract shippers which is loaded 
and carried in bulk without mark or count except liquid bulk cargoes, 
other than chemicals, in less than full shipload lots: Provided^ how-
ever., That upon finding that economic factors so warrant, the Com-
mission may exclude from the contract any commodity subject to the 
Notice and hear-
ing. 
75 S T A T . ] 
PUBLIC LAW 87-346-OCT. 3, 1961 
763 
foregoing exception; and (9) contains such other provisions not in-
consistent herewith as the Commission shall rec[uire or permit. The 
Commission shall withdraw permission which it has granted under 
the authority contained in this section for the use of any contract if 
it finds, after notice and hearing, that the use of such contract is de-
trimental to the commerce of the United States or contrary to the 
public interest, or is unjustly discriminatory or unfair as between 
shippers, exporters, importers, or ports, or between exporters from 
the United States and their foreign competitors. The carrier or con-
ference of carriers may on ninety days' notice terminate without 
penalty the contract rate system herein authorized, in whole or with 
respect to any commodity: Provided^ hoicever^ That after such ter-
mination the carrier or conference of carriers may not reinstitute such 
contract rate system or part thereof so terminated without prior per-
mission by the Commission in accordance with the provisions of this 
section. Any contract, amendment, or modification of any contract 
not permitted by the Commission shall be unlawful, and contracts, 
amendments, and modifications shall be lawful only when and as long 
as permitted by the Commission: before permission is granted or after 
permission is withdrawn it shall be unlawful to carry out in whole or 
in part, directly or indirectly, any such contract, amendment, or modi-
fication. 
As used in this section, the term 'contract shipper' means 
a person other than a carrier or conference of carriers who is a party 
to a contract the use of which may be permitted under this section." 
SEC. 2. Section 15, Shipping Act, 1916, is amended to read as fol- 
|§ ulc III'. 
lows: 
"SEC. 15. That every common carrier by water, or other person sub- ^^"s"^t°^ agree-
ject to this Act, shall file immediately with the Commission a true 
copy, or, if oral, a true and complete memorandum, of every agreement 
with another such carrier or other person subject to this Act, or modifi-
cation or cancellation thereof, to which it may be a party or conform 
in whole or in part, fixing or regulating transportation rates or fares; 
giving or receiving special rates, accommodations, or other special priv-
ileges or advantages; controlling, regulating, preventing, or destroying 
competition; pooling or apportioning earnings, losses, or traffic; allot-
ting ports or restricting or otherwise regulating the number and 
character of sailings between ports; limiting or regulating in any way 
the volume or character of freight or passenger traffic to be carried; or 
in any manner providing for an exclusive, preferential, or cooperative 
working arrangement. 
The term 'agreement' in this section includes 
understandings, conferences, and other arrangements. 
"The Commission shall by order, after notice and hearing, disap- 
Discriminatory 
1 
J-(J 
*
^ 
' , 
T/. 
,. 
f 
K agreements, disap-
prove, cancel or modify any agreement, or any modification or cancel- provai. 
lation thereof, whether or not previously approved by it, that it finds 
to be unjustly discriminatory or unfair as between carriers, shippers, 
exporters, importers, or ports, or between exporters from the United 
States and their foreign competitors, or to operate to the detriment of 
the commerce of the United States, or to be contrary to the public 
interest, or to be in violation of this Act, and shall approve all other 
agreements, modifications, or cancellations. 
No such agreement shall 
be approved, nor shall continued approval be permitted for any agree-
ment (1) between carriers not members of the same conference or 
conferences of carriers serving different trades that would otherwise 
be naturally competitive, unless in the case of agreements between car-
riers, each carrier, or in the case of agreements between conferences, 
each conference, retains the right of independent action, or (2) in 
respect to any conference agreement, which fails to provide reasonable 
and equal terms and conditions for admission and readmission to con-
764 
PUBLIC LAW 87-346-OCT. 3, 1961 
[75 ST A T . 
Ante, p. 762. 
Infra. 
26 Stat. 209. 
15 u s e 1-7. 
28 Stat. 570. 
15 u s e 8-11. 
Existing 
agree-
m e n t s , 
modifica-
tion, etc. 
Filing of carrier 
rates, etc. 
ference membership of other qualified carriers in the trade, or fails to 
provide that any member may withdraw from membership upon 
reasonable notice without penalty for such withdrawal. 
"The Commission shall disapprove any such agreement, after notice 
and hearing, on a finding of inadequate policing of the obligations 
ilihder it, or of failure or refusal to adopt and maintain reasonable 
procedures for promptly and fairly hearing and considering shippers' 
requests and complaints. 
"Any agreement and any modification or cancellation of any agree-
ment not approved, or disapproved, by the Commission shall be unlaw-
ful, and agreements, modifications, and cancellations shall be lawful 
only when and as long as approved by the Commission; before approval 
or after disapproval it shall be unlawful to carry out in whole or in 
part, directly or indirectly, any such agreement, modification, or can-
cellation ; except that tariff rates, fares, and charges, and classifications, 
rules, and regulations explanatory thereof (including changes in 
special rates and charges covered by section 14b of this Act which do 
not involve a change in the spread between such rates and charges and 
the rates and charges applicable to noncontract shippers) agreed upon 
by approved conferences, and changes and amendments thereto, if 
otherwise in accordance with law, shall be permitted to take effect 
without prior approval upon compliance with the publication and 
filing requirements of section 18(b) hereof and with the provisions of 
any regulations the Commission may adopt. 
"Every agreement, modification, or cancellation lawful under this 
section, or permitted under section 14b, shall be excepted from the pro-
visions of the Act approved July 2, 1890, entitled 'An Act to protect 
trade and commerce against unlawful restraints and monopolies', and 
amendments and Acts supplementary thereto, and the provisions of 
sections 73 to 77, both inclusive, of the Act approved August 27,1894, 
entitled 'An Act to reduce taxation, to provide revenue for the Gov-
ernment, and for other purposes', and amendments and Acts supple-
mentary thereto. 
"Whoever violates any provision of this section or of section 14b 
shall be liable to a penalty of not more than $1,000 for each day such 
violation continues, to be recovered by the United States in a civil 
action." 
SEC. 3. Notwithstanding the provisions of sections 14, 14b, and 15, 
Shipping Act, 1916, as amended by this Act, all existing agreements 
which are lawful under the Shipping Act, 1916, immediately prior to 
enactment of this Act, shall remain lawful unless disapproved, can-
celed, or modified by the Commission pursuant to the provisions of the 
Shipping Act, 1916, as amended by this Act: Prcfvided, however, That 
all such existing agreements which are rendered unlawful by the pro-
visions of such Act as hereby amended must be amended to comply 
with the provisions of such Act as hereby amended, and if such amend-
ments are filed for approval within six months after the enactment of 
t;his Act, such agreements so amended shall be lawful for a further 
period of not to exceed one year after such filing. Within such year 
the Commission shall approve, disapprove, cancel or modify all such 
agreements and amendments in accordance with the provisions of this 
Act. 
SEC. 4. Section 18, Shipping Act, 1916, is hereby amended as 
follows: 
(a) Insert " (a)" immediately after the section number "18". 
(b) Add the following subsection 18(b) : 
"(b)(1) From and after ninety days following enactment hereof 
every common carrier by water in foreign commerce and every con-
ference of such carriers shall file with the Commission and keep open 
76 S T A T . ] 
PUBLIC LAW 8 7 - 3 4 6 - O C T . 3, 1961 
766 
to public inspection tariffs showing all the rates and charges of such 
carrier or conference of carriers for transportation to and from 
United States ports and foreign ports between all points on its own 
route and on any through route which has been established. 
Such 
tariffs shall plainly show the places between which freight will be 
carried, and shall contain the classification of freight in force, and 
shall also state separately such terminal or other charge, privilege, 
or facility under the control of the carrier or conference of carriers 
which is granted or allowed, and any rules or regulations which in 
anywise change, affect, or determine any part or the aggregate of 
such aforesaid rates, or charges, and shall include specimens of any 
bill of lading, contract of affreightment, or other document evidencing 
the transportation agreement. 
Copies of such tariff's shall be made 
available to any person and a reasonable charge may be made therefor. 
The requirements of this section shall not be applicable to cargo loaded 
and carried in bulk without mark or count. 
"(2) No change shall be made in rates, charges, classifications, rules 
^°** changes. 
or regulations, which results in an increase in cost to the shipper, 
nor shall any new or initial rate of any common carrier by water in 
foreign commerce or conference of such carriers be instituted, except 
by the publication, and filing, as aforesaid, of a new tariff or tariffs 
which shall become effective not earlier than thirty days after the date 
of publication and filing thereof with the Commission, and each such 
tariff or tariffs shall plainly show the changes proposed to be made 
in the tariff or tariffs then in force and the time when the rates, 
charges, classifications, rules or regulations as changed are to become 
effective: Provided^ hoioever, That the Commission may, in its discre-
tion and for good cause, allow such changes and such new or initial 
rates to become effective upon less than the period of thirty days herein 
specified. 
Any change in the rates, charges, or classifications, rules 
or regulations which results in a decreased cost to the shipper may 
become effective upon the publication and filing with the Commission. 
The term "tariff" as used m this paragraph shall include any amend- 
"Tariff, 
ment, supplement or reissue. 
"(3) No common carrier by water in foreign commerce or confer- 
collection of 
ence of such carriers shall charge or demand or collect or receive a oniy.*^ 
greater or less or different compensation for the transportation of 
property or for any service in connection therewith than the rates and 
charges which are specified in its tariffs on file with the Commission 
and duly published and in effect at the time; nor shall any such carrier 
rebate, refund, or remit in any manner or by any device any portion 
of the rates or charges so specified, nor extend or deny to any person 
any privilege or facility, except in accordance with such tariffs. 
"(4) The Commission shall by regulations prescribe the form and 
manner in which the tariffs required by this section shall be published 
and filed; and the Commission is authorized to reject any tariff filed 
with it which is not in conformity with this section and with such 
regulations. Upon rejection by the Commission, a tariff shall be void 
and its use unlawful. 
"(5) The Commission shall disapprove any rate or charge filed by 
a common carrier by water in the foreign commerce of the United 
States or conference of carriers which, after hearing, it finds to be 
so unreasonably high or low as to be detrimental to the commerce of 
the United States. 
" (6) Whoever violates any provision of this section shall be liable to 
Penalty. 
a penalty of not more than $1,000 for each day such violation con-
tinues, to be recovered by the United States in a civil action." 
SEC. 5. Section 20, Shipping Act, 1916, is amended by changing the 
^ ^^^ g^f|-
period at the end thereof to a semicolon and adding the following: "or 
766 
PUBLIC LAW 87-347-OCT. 3, 1961 
[75 ST A T . 
F i l i n g 
of pro-
tests. 
49 Stat. 15 18. 
Rules and regu-
lations. 
to prevent any common carrier by water which is a party to a confer-
ence agreement approved pursuant to section 15 of this Act, or any 
other person subject to this Act, or any receiver, trustee, lessee, agent, 
or employee of such carrier or person, or any other person authorized 
by such carrier to receive information, from giving information to the 
conference or any person, firm, corporation, or agency designated by 
the conference, or to prevent the conference or its designee from so-
liciting or receiving information for the purpose of determining 
whether a shipper or consignee has breached an agreement with the 
conference or its member lines or of determining whether a member 
of the conference has breached the conference agreement, or for the 
purpose of compiling statistics of cargo movement, but the use of such 
information for any other purpose prohibited by this Act or any 
other Act shall be unlawful." 
SEC. 6. Section 16 First, Shipping Act, 1916 (39 Stat. 734; 46 
U.S.C. 815), is hereby amended by deleting the period at the end 
thereof and adding the following: ": Provided^ That within thirty 
days after enactment of this Act, or within thirty days after the 
effective date or the filing with the Commission, whichever is later, 
of any conference freight rate, rule, or regulation in the foreign 
commerce of the United States, the Governor of any State, Common-
wealth, or possession of the United States may file a protest with 
the Commission upon the ground that the rate, rule, or regulation 
unjustly discriminates against that State, Commonwealth, or posses-
sion of the United States, in which case the Commission shall issue 
an order to the conference to show cause why the rate, rule, or 
regulation should not be set aside. Within one hundred and eighty 
days from the date of the issuance of such order, the Commission 
shall determine whether or not such rate, rule, or regulation is 
unjustly discriminatory and issue a final order either dismissing the 
protest, or setting aside the rate, rule, or regulation." 
SEC. 7. The Shipping Act, 1916, is hereby amended by inserting a 
new section 43 reading as follows: 
"SEC. 43. The Commission shall make such rules and regulations 
as may be necessary to carry out the provisions of this Act." 
Approved October 3, 1961. 
October 3, 1961 
[H. R. 84] 
Public Law 87-347 
AN ACT 
To stabilize the mining of lead and zinc by small domestic producers on public, 
Indian, and other lands, and for other purposes. 
L e a d and z i n c 
mining. 
Stabilization. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That the Secretary 
of the Interior is hereby authorized and directed to establish and main-
tain a program of stabilization payments to small domestic producers 
of lead and zinc ores and concentrates in order to stabilize the mining 
of lead and zinc by small domestic producers on public, Indian, and 
other lands as provided in this Act. 
SEC. 2. (a) Subject to the limitations of this Act, the Secretary shall 
make stabilization payments to small domestic producers upon pres-
entation of evidence satisfactory to him of their status as such pro-
ducers and of the sale by ihani of newly mined ores, or concentrates 
produced therefrom, as provided in this Act. 
Payments shall be made 
only with respect to the metal content as determined by assay. 
(b) Such payments shall be made to small domestic producers of 
lead as long as the market price for common lead at New York, New