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Annual Report for Fiscal Year 1953

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Annual Report of the FEDERAL MARITIME BOARD AND MARITIME ADMINISTRATION 1953 Mptp P S O UNITED STATES DEPARTMENT OF COMMERCE For sale by the Superintendent of Documents 1 S Government Printing Office Washmgtun 23 D C Prim 25 cents UNITED STATES DEPARTMENT OF COMMERCE SINCLAIR WEEKS Secretary Washington D C FEDERAL MARITIME BOARD LOUIS S ROTHSCHILD Chairman ROBERT W WILLIAMS Vice Chairman E C UPTON JR Member A J WILLIAMS Secretary MARITIME ADMINISTRATION LOUIS S ROTHSCHILD Maritime Administrator THOS E STAKEM JR Acting Deputy Maritime Administrator Letters of Transmittal UNITED STATES DEPARTMENT OF COMMERCE FEDERAL MARITIME BOARD MARITIME ADMINISTRATION Washington 25 D C November 13 1953 To The Secretary of Commerce FROM Chairman Federal Maritime Board and Maritime Adminis trator SUBJECT Annual Report for fiscal year 1953 I am submitting herewith the report of the Federal Maritime Board and Maritime Administration covering their activities for the fiscal year ended June 30 1953 Louis S ROTHSCHILD SECRETARY OF COMMERCE Washington 25 D C To the Congress I have the honor to present the annual report of the Federal Mari time Board and Maritime Administration of the Department of Commerce for fiscal year 1953 Secretary of Commerce iii CONTENTS Fiscal Year Activities Page 1 INTRODUCTION Merchant ships in use i Modern ships are added 2 Construction and operating aid 2 Ship sales and transfers 3 Manning the ships and shipyards 3 Shoreside facilities 4 Regulatory developments 4 International relationships 4 SHIP OPERATIONS 4 General agency activities 5 Charters 6 Ship repair and maintenance 6 Traffic activities 7 Grain storage 8 Ship custody 8 Tanker services 9 9 S HIPBUILDING New construction 9 Material control 10 Conversions 10 Building proosals 11 Technical developments 11 AID TO SHIPPING 12 Construction differential subsidy aid 12 Operating differential subsidy aid 14 Construction reserve funds 16 Federal ship mortgage aid 16 Voluntary deposits and waivers 17 SHIPPING STUDIES AND REPORTS 17 Ship cargo and labor data 17 Special studies and periodic reports 17 Trade routes is SHIP SALES AND TRANSFERS is Shipsales 18 Investigation of ship purchasers 19 Transfers to foreign ownership and or registry 19 Mortgages and charters to aliens 20 Surrender of marine documents 20 LABOR RELATIONS 20 Seamen 20 Shipyard 21 Longshoremen 22 MARITIME TRAINING 22 Cadetmidshipmen 22 United States Maritime Service 23 V MARITIME TRAINING Continued Page Medical program 24 Seamen awards and services 24 PROPERTY AND SUPPLY 24 Shi 24 Terminals 25 Field warehouses 26 Port development 26 Inventories 27 Material control and disposal 27 Industrial mobilization planning 27 Purchasing 28 Domestic freight traffic 28 Other property 28 ADMINISTRATIVE MANAGEMENT 28 Personnel 28 Safety 29 Budget 29 Organization and methods 29 FINANCE 30 Internal audits and procedures 30 Accounting 30 Auditing 31 Insurance 31 Financial statements 32 Reserve funds of subsidized operators 32 Claims 33 LEGAL ACTIVITIES 33 Legislation 33 Contracts 35 Admiralty insurance and labor law 35 Claims and renegotiation 36 General litigation 36 REGULATORY ACTIVITIES 37 Conference and other agreements 38 Freight ratesforeign 39 Freight rates United States Territories and possessions 39 Terminals 39 Freight forwarders 40 PROCEEDINGS BFiFORE HEARING EXAMINERS 40 Final decisions of the Board 40 Recommended decisions of hearing examiners 43 Pending proceedings 43 INTERNATIONAL MARITIME AFFAIRS 44 Financial Statements EXHIBITS 1 Balance SheetJune 30 1953 and 1952 48 2 Statement of Operations for the Years Ended June 30 1953 and 1952 50 3 Statement of Equity of the United States Covernment for the Years Ended June 30 1953 and 1952 51 4 Statement of Sources and Application of Funds for the Year Ended June 30 1953 52 Summary of Changes in Working Capital 52 V1 Page NOTES TO FINANCIAL STATEMENTSJune 30 1953 and 1952 53 SCHEDULES 1 Land and Site Development Structures and EquipmentJune 30 1953 54 2 Statement of Operations of National Shipping Authority for the Years Ended June 30 1953 and 1952 56 3 Statement of Operations of National Shipping Authority from 57 Inception to June 30 1953 Appendixes A Deliveries of New Merchant Ships Fiscal Year Ended June 30 1953 58 B Ships of 1000 Gross Tons and Over Delivered by United States Ship yards July 1 1952 to June 30 1953 60 C Progress of Construction on Ships Under Maritime Administration Contracts on June 30 1953 61 D New Ship Construction on June 30 1953 62 E Status of Operating Subsidy Agreements on June 30 1953 62 F Employment of United StatesFlag Merchant Ships as of June 30 1953 64 G Merchant Fleets of the World as of June 30 1953 66 H Ships Approved for Transfer to Alien Ownership andor Registry and Flag Fiscal Year 1953 68 I Cash and United States Government Securities on Deposit in Statu tory Capital and Special Reserve Funds of Subsidized Operators as 68 at June 30 1953 J Claims on Hand June 30 1953 69 Claims Settled under the Suits in Admiralty Act Fiscal Year 1953 69 Vii FISCAL YEAR ACTIVITIES Introduction Faced with a great increase in foreignflag tonnage and a foreign construction program at a high production level the United States merchant marine was presented with its greatest postwar challenge The United States merchant marine continued to provide the ocean transportation services necessary for military operations in Korea mobilization and stockpiling programs at home and foreign aid programs for free nations abroad Despite this foreignflag carriers made substantial inroads into the commercial cargo movement Many United Statesflag operators began to encounter difficulty in acquiring sufficient cargoes and some privately owned ships were in idle status or laid up because of insufficient cargo offerings Merchant ships in use Utilization of Governmentowned reserve ships for emergency purposes to supplement the private merchant fleet continued to be the National Shipping Authoritys foremost responsibility Government owned ships however were used only to augment the work of the private merchant marine not to compete with it When commercial shipping requirements declined sharply and privately owned ships became available Governmentowned ships were returned to inactive status In the fiscal year a major deactivation program involving Government owned ships was successfully concluded The number of ships operated for the Government by general agents during the year declined from 183 at the start of the year to 108 by November 30 1952 and then increased to 141 by the end of the year These ships were all assigned for military use Government ships on charter continued to decrease from 91 on June 30 1952 to 49 a year later as privately owned ships became available and demand for ships declined By June 30 1953 57 ships from reserve fleets had at the request of the Department of Agriculture been put to use for grain storage In addition 68 ships making a total of 125 were designated to be used for this purpose Ships in the reserve fleets were being preserved by the most modern techniques to keep them ready to serve again on short notice Bottom preservation by the cathodic method was completely installed for the 366 ships in the James River Reserve Fleet and was well under way at the Hudson River and Wilmington fleets 278891542 Modern ships are added During the fiscal year passenger ship construction ended and deliveries commenced from United States shipyards of modern cargo ships of the Mariner type The yards continued to deliver large highspeed tankers for private United Statesfiag and foreign account By the end of the year ten of the Mariners had been completed and delivered The delivered ships were operated for the account of the United States under general agency agreement These ships were designed to serve under conditions of modern warfare with a maximum assurance of safety They incorporate the most advanced design and technological improvements and can serve as replacements as ships in the present merchant fleet become obsolete Pacific Far East Line Inc operating in the trans Pacific trade agreed to buy three of the fast Mariner ships Uncompleted ships were selected as the most economical to effect changes desired for the companys particular service The last two of three converted troopships were completed and delivered to the Military Sea Transportation Service Construction and operating aid Important items of unfinished business included determination of the contract prices under construction differential subsidy for the passenger ships S S United States S S Constitution and S S Inde pendence With respect to the United States the Attorney General was of the opinion that the contract was voidable by the Government which could recover at least 10000 of the sales price On orders of the Comptroller General subsidy payments in excess of 8000 were withheld and the United States Lines Co filed suit for recovery of that amount After further hearings the sales prices of the Independence and the Constitution were revised to figures representing a 4584 percent construction differential subsidy The Comptroller General took exception to the redetermined prices Various proposals were submitted to purchase or build ships in fulfillment of replacement obligations in operating subsidy contracts None of these was consummated because of lack of funds or contract authority or the need for further study Passage of a bill near the close of the last session of Congress liberalizing Federal insurance on private shipbuilding loans was aimed to encourage private financing Effective
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