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FEDERAL MARITIME BOARD and MARITIME ADMINISTRATION 1957 UNITED STATES DEPARTMENT OF COMMERCE For sale by the Superintendent of Documents, U. S. Government Printing Oftlce Wasltington 25, D. C. • Price 25 cents (paper cover) UNITED STATES DEPARTMENT OF COMMERCE SINCLAIR WEEKS, Secretary Washington, D. C. FEDERAL MARITIME BOARD CLARENCE G. MORSE, Chairman BEN H. GUILL, Member THOS. E. STAKEM, Member JAMES L. PIMPER, Secretary MARITIME ADMINISTRATION CLARENCE G. MORSE, Maritime Administrator WALTER C. FoRD, Deputy Maritime Administrator LETTERS OF TRANSMITTAL UNITED STATES DEPARTMENT oF CoMMERCE, FEDERAL MAmTIME BoARD, MAluTIME .ADMINISTRATION, W ashington25, D. 0., October 21,1957. To: The Se01'etary of Oomtmerce. FROM : 0 hai'f"Jnan, F ederdl Man time Board, and Maritime Adminis­ trator. SUBJECT: Annual Report for fiscal year 1957. I am submitting herewith the report of the Federal Maritime Board and Maritime Administration covering their activities for the fiscal year ended June 30, 1957. (!fJ~r;~ CLARENCE G. MoRSE. SEcRETARY OF CoMMERCE, Washington 25, D. 0. To the 0 ongress: I have the honor to present the annual report of the Federal Mari­ time Board and Maritime Administration of the Department of Com­ merce for fiscal year 1957. ~A"~ Se01'etary of Oorrvmerce. iii CONTENTS Fiscal Year Activities Page INTRODUCTION_____________________________________________________ 1 AID TO SHIPPING-------------------------------------------------- 4 Construction-Differential Subsidy-----------------------_________ 4 Federal Ship Mortgage and Loan Insurance_______________________ 6 Other Forms of Construction Aid________________________________ 7 Operating-Differential Subsidy----------------------_____ -----___ 8 Aid to Vessels Over 20 Years of Age______________________________ 9 Trade Routes-------------------------------------------------- 10 SHIP OPERATIONS-------------------------------------------------- 10 Demand for Ocean Shipping_____________________________________ 10 Charters------------------------------------------------------ 11 General Agency Activities ______________ ------------_____________ 12 Grain Storage------------------------------------------------- 12 Port Development __ -----------------------------_____ ----_____ 12 Ship CustodY-------------------------------------------------- 13 Other Activities ____________ ------- __ -------------_________ --___ 13 SHIP CoNSTRUCTION AND REPAIR------------------------------------ 14 Nuclear Merchant Ship Program_________________________________ 14 Construction-------------------------------------------------- 15 Conversions--------------------------------------------------- 16 Technical Developments _______ ------______ ------------_________ 17 Building Proposals _______________ --------- __ ----------___ -----_ 18 Ship Repair--------------------------------------------------- 19 SHIPPING STUDIES AND REPORTS------------------------------------ 19 Special Studies _________ ------------______ ------------------___ 19 Ship, Cargo, and Labor Data____________________________________ 20 Labor-Management Relations _______ ------------------------____ 20 MARITIME TRAINING _______ -----------_--_------------------------- 21 United States Merchant Marine Academy_________________________ 21 State Maritime Academies--------------------------------------- 22 SHIP SALES AND TRANSFERS---------------------------------------- 23 Ship Sales----------------------------------------------------- 23 Transfers to Foreign Ownership and/or Registry___________________ 23 PROPERTY AND SUPPLY--------------------------------------------- 24 Shipyards_____________________________________________________ 24 Terminals and Reserve Training Stations_________________________ 25 VVarehouses--------------------------------------------------- 26 Material Control, Inventory, and DisposaL_______________________ 26 Purchasing____________________________________________________ 27 ADMINISTRATIVE MANAGEMENT ________ ------_____ ------ ___ ---------_ 27 Program and Defense Planning__________________________________ 27 Personnel----------------------------------------------------- 28 Organization and Methods______________________________________ 28 Security and Investigation ___________ ------------_______________ 28 FINANCE__________________________________________________________ 29 Financial Relationships VVith Contractors_________________________ 29 Accounting____________________________________________________ 29 Audits________________________________________________________ 30 Internal Audits __________________________ -----_________________ 31 Insurance_____________________________________________________ 31 Notes and Accounts Receivable__________________________________ 32 Claims_______ --------________ -------_____ ------_______________ 32 v Page LEGAL AcTIVITIEs _____ -----_______________ --------_________________ 33 Legislation____________________________________________________ 33 Contracts----------------------------------------------------- 33 Litigation ________ -----------__________________________________ 34 REGULATORY ACTIVITIES _________ ----____ ------___________ --------__ 36 Conferences and Other Agreements_______________________________ 37 Freight-Foreign______________________________________________ 38 Freight-United States Territories and Possessions_________________ 38 Terminals ______ ------------------------------------___________ 39 Freight Forwarders __________ -------- __ --------___ --------______ 39 PROCEEDINGS BEFORE HEARING EXAMINERS-------------------------- 40 Final Decisions of the Board and/or Administrator_________________ 40 Recommended Decisions of Hearing Examiners____________________ 42 Pending Proceedings------------------------------------------- 43 INTERNATIONAL MARITIME AFFAIRS---------------------------------- 43 FINANCIAL STATEMENTS EXHIBITS: I. Balance Sheet-June 30, 1957 and 1956________________________ 46 2. Statement of Operations for the Years Ended June 30, 1957 and 1956_____________________________________________________ 48 3. Statement of Equity of the United States Government for the Years Ended June 30, 1957 and 1956------------------------ 49 4. Statement of Sources and Application of Funds for the Year Ended June 30, 1957 _______ _ _ __ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ __ _ __ _ 50 NoTES TO FINANCIAL STATEMENTs-June 30, 1957 and 1956______________ 51 SCHEDULES: I. Statement of Operations of National Shipping Authority for the Years Ended June 30, 1957 and 1956------------------------ 52 2. Statement of Operations of National Shipping Authority From Inception to June 30, 1957-------_ ___ __ ____ __ __ _ __ __ _ _ __ _ _ _ _ 53 APPENDIXES A. Employment of United States-Flag Merchant Ships as of June 30, 1957 _ 54 B. Deliveries of New Merchant Ships During Fiscal Year 1957__________ 56 C. Summary of Operating-Differential Subsidy Agreements on June 30, 1957________________________________________________________ 58 D. Ships Approved for Transfer to Alien Ownership and/or Registry and Flag, Fiscal Year 1957----------------------------------------- 58 E. New Ship Construction on June 30, 1951-------------------------- 59 F. Merchant Fleets of the World as of June 30, 1957___________________ 60 G. Cash and Approved Securities on Deposit in Statutory Capital and Special Reserve Funds of Subsidized Operators as at June 30, 1957 _- 62 vi FISCAL YEAR ACTIVITIES Introduction Reorganization Plan No. 21 of 1950, effective May 24, 1950, abol­ ished the United States Maritime Commission and established the Federal Maritime Board and the Maritime Administration in the De­ partment of Commerce to perform the functions of the abolished agencY. The Federal Maritime Board is composed of three members, ap­ pointed by the President, by and with the advice and consent of the Senate. The President designates one of such members to be the Chairman of the Board, who also serves em officio as Maritime Admin­ istrator. The plan transferred to the Federal Maritime Board the regula­ tory functions of the United States Maritime Commission and the functions with respect to making, amending, and terminating subsidy contracts and with respect to conducting hearings and making deter­ minations antecedent thereto, under the provisions of titles V, VI, and VIII, and sections 301, 708, 805 (a), and 805 (f) of the Merchant Marine Act, 1936, as amended. The Board, in respect of the regulatory functions transferred to it by the plan, is independent of the Secretary of Commerce. In admin­ istering other functions transferred to the Board by the plan, the Board is guided by the general policies of the Secretary of Commerce with respect to such functions. The actions of the Board in respect of the subsidy functions transferred to it are final. The Maritime Administration is charged with the administration and execution of shipbuilding, shipping, port development, and other programs authorized by law. Many of its actions are based on de­ terminations made by the Federal Maritime Board. The Adminis­ tration carries out its functions under a delegation of authority from the Secretary of Commerce. The Federal Maritime Board and the Maritime Administration, during fiscal year 1957, continued to devote their resources to the ac­ complishment of their responsibilities under the maritime laws. This legislation provides for the development and promotion of an Ameri­ can merchant marine sufficient to carry the domestic waterborne com­ merce and a substantial portion of the foreign commerce of the
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