280
D O T F V 2 J P O W 1 2 F M C F s o D u s G P O W D C 2

DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

Embed Size (px)

Citation preview

Page 1: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

DEQSIONS OF THE FEDERAL MARITIME COMMISSION VOLUME 22JULY 1979 TOJUNE 1980 USGOVERNMENT PRINTING OFFICE WASHINGTON 1982 22FMCFor sale bythe Superintendent of Documents usGovernment Printing Office Washington DC20402

Page 2: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARmME COMMISSION Washington DCJune 301980 Richard JDaschbach Chairman Leslie LKanuk Vice Chairman James VDay Member Thomas FMoakley Member Peter NTeige Member

Page 3: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

CONTENTS Tables of Cases Reported VDocket Numbers of Cases Reported XI Decisions of the Federal Maritime Commission I

Page 4: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

TABLE OF CASES REPORTED Actions toAdjust or Meet Conditions Unfavorable toShipping inthe United States Ecuador Trade Agreement Nos 150 DR7and 3103 DR7Agreement Nos 8200 8200 18200 2and 8200 3Between the Pacific Westbound Conference and the Far East Conference Agreement Nos 9929 3et al Agreement No 10116 3Extension of Pooling Arrangement inthe USPacificCoastl Japan Trades Allied Stores International Inc Subsidiary of Allied Stores Corporation vUnited States Lines Jne American President Lines Ltd for the Benefit of Beverly Coat Hanger Company American President Lines Ltd Pacific Freight Audit Inc vAmerican President Lines Ltd Tertloth and Kennedy Ltd vAmstar Corporation vSea Land Service Inc Angel Alfredo Romero Independent Ocean Freight Forwarder Application and Foreign Freight Forwarders Inc Possible Violations of Section 44Shipping Act 1916 Argentine Line FMC Corporation vAssociated Container Transportation Australia Ltd Rederiaktiebolaget Transatlantic PAD Shipping Australia PTY Ltd Farrell Lines Inc vAtlantic Container Line Fiat Allis France Materials De Travaux Publics SAvAtlantic Container Line Ideal Toy Corporation vAtlanttrafik Express Service Organic Chemicals Glidden Durkee Division ofSCM Corporation vBarber Blue Sea Line Jnterpur ADivision of Dart Industries Inc vBarber Blue Sea Line Kraft Foods Corporation vBarber Blue Sea Line Stop Shop Companies Inc Bradlees Division vCancellation of Tariffs for Noncompliance with Tariff Filing Regulations Cargo Systems International CSI Independent Ocean Freight Forwarder Application and Possible Violation of Section 44Shipping Act 1916 City of Galveston Board of Trustees of the Galveston Wharves West Gulf Maritime Association YCompania Peruana De Vapores Warner Lambert Ltd vCompania Sud Americana De Vapores SCM Corporation vConsolidated Express Inc Poirette Corsets Inc vCosta Armatoria SpAand Ttalia Di Navigazione Ruffin fnc vCosta Lines Excam Inc vCummins Engine Company vMaersk Lines Ltd Cummins Engine Company vUSLines Inc Cummins Engine Company vYSLine Yamashita Shinnihon Steamship Co Ltd TIT Ship Agencies Declaratory Order Request Re Pacific Westbound Conference Agreement No 57115 Page 339 378 712 76146 79725 839 168 207 8581 788 813 109 544 223 743 816 679 725 722 725 720 56101 401 725 680 376 611 704 139 139 139 133

Page 5: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

IjVI FEDERAL MARITIME COMMISSION I1Del Monte Corporation vMatson Navigation Company Dorf Intemational Limited vFlota Mercante Grancolombiana SADow Coming Corporation vSea Land Service Inc Dow Coming Corporation vUnited States Lines Inc Dow Corning Corporation vUnited States Navigation Inc Drayage Service Agreement No 2846 Dual Rate Contract Systems inthe Foreign Commerce of the United States Rate Increase onLethan Ninety Days Notice EAllen Brown Independent Ocean Freight Forwarder License No 1246 EDuPont De Nemours and Company vSea Land Service Inc Elder Dempster Lines Ltd LHFeder dbaPioneer Institutional Trading Company vEller Company Inc McGiffin Company Inc vEmile Bernat Sons Co vUnited States Lines Inc Ernest RLevine dbaGerald Export Import Company vHapag L1oyd AGExcam Inc vLykes Lines Agency Inc and Costa Lines Exemptions from Provisions of the Shipping Act 1916 and The Intercoastal Shipping Act 1933 Expedited Surcharges for Recovery of Carriers Increase Fuel Costs Inthe Foreign Commerce of the United States Farrell Lines Inc vAssociated Conlainer Transportation Australia Ltd Rederiaktiebolaget Transatlantic PAD Shipping Australia PTY Ltd Fiat Allis France Materiels De Travaux Publics SAvAtlantic Container Line Flota Mercante Grancolombiana SADorf International Limited vFIOla Mercante Grancolombiana SAGeneral Electric De Colombia SAvFoAlaska Line Inc Proposed General Rate Increase Between Seattle Washington and Points inWestern Alaska FMC Corporation vArgentine Line FMC Corporation vSea Land Service Inc General Electric De Colombia SAvFIOla Mercante Grancolombiana SAGeneral Order No 13Amdt 2and General Order43 Part 536 Filing of Tariff byCommon Carriers inthe Foreign Commerce of the United States Part 552 Certification of Company Policies and Efforts toCombat Rebating inthe Foreign Commerce of the United States General Order No 13Amdt 3Part 536 Publishing and Filing Tariffs byCommon Carriers inthe Foreign Commerce of the United Slates Exemptions and Exclusions General Order No 14Amdt 6Part 527 Shippers Requests and Complaints General Order No 16Amdt 30and General Order No 22Amdt 9Part 502 and Part 503 Updating of Existing Fees and Charges and the Establishment of New Fees for Certain Services Provided bythe Federal Maritime Commission General Order No 16Arndt 31Part 502 Amending the Rule Governing Intervention inCommission Proceedings General Order No 16Amdt 33Part 502 Limiting the Grounds Upon which Petitions for Reconsideration of Final Decisions or Orders of the Commission may beSought and toRestrict the Filing of Petitions for Slay of Commission Orders General Order No 16Amdt 35Part 502 Revising Rule 67of the Commission sRules of Practice and Procedure General Order No 20Amdt 6Part 540 Security for the Protection of the public Subpart AProof of Financial Responsibility Bonding and Certification of Financial Responsibility for Indemnification ofPa engers for Nonperformance of Transportation General Orders Nos 25and 30Part 504 Collection Compromise and Termination of Enforcement Claims Part 505 Compromise Asse ment Settlement and Collection Page 364 419 706 679 478 498 723 583 525 372 I143 414 704 132 149 109 544 419 710 737 86813 680 841 710 737 489 575 818 2161 351 832 646

Page 6: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

TABLE OF CASES REPORTED of Civil Penalties Under the Shipping Act 1916 and the Intercoastal Shipping Act 1933 General Order No 38Arndt 2Part 53IRegulations Governing the Publishing Filing and Posting of Tariffs inDomestic Offshore Commerce General Order NQ42Part 514 Financial Exhibits and Schedules Non vessel Operating Common Carriers inthe Domestic Offshore Trades General Order No 44Part 525 Exemption of Collective Bargaining Agreements Part 530 Interim Bargaining Agreements George WMoore Inc vInternational Container Express Inc Girton Manufacturing Company vHellenic Lines Limited Girton Manufacturing Co vPrudent al Lines Inc Gulf Caribbean Marine Lines Inc General Increase inRates Hanover Brands Inc vSea Land Service Inc Hapag L1oyd AGErnest RLevine dbaGerald Export Import Company vHellenic Lines Limited Girton Manufacturing Company vHHCranes Inc vPort of Houston Authority of Harris County Texas HKInternational Forwarding Inc Independent Ocean Freight Forwarder License Application Holt Hauling Warehousing System Inc Pierpoint Management Company and Retia Steamship Company vICharles Lucidi dbaLucidi Packing Company vThe Stockton Port District Ideal Toy Corporation vAtlantic Container Line Improvements inPrehearing and Discovery Procedures Independent Freight Forwarder License No 1321 Ikeda International Corporation Independent Ocean Freight Forwarder Bids onGovernment Shipments at United States Ports Indiana Port Commission Lakes and Rivers Transfer Corporation vInternational Container Express Inc George WMoore Inc vInternational Trade Development Inc and Robert HWall Inc vSentinel Line and Anchor Shipping Corporation Interpool Ltd Itel Corporation Container Division Trans Ocean Leasing Corporation vPacific Westbound Conference Far East Conference and Member Lines Interpur ADivision of Dart Industries Inc vBarber Blue Sea Line Inthe Mauer of Compensation of Independent Ocean Freight Forwarders James Betesh Import Company vSeatrain Pacific Services SAJapan Korea Atlantic and Gulf Freight Conference Rules Pertaining toChassis Avail ability and Demurrage Charges that Result When Chassis are not Made Available Japan Line USALtd for Japan Line Ltd for Benefit of Nomura America Corporation Japan Lines Ltd and Kawasaki Kisen Kaisha Ltd TDK Electronics Co Ltd vJapan Line Ltd Merck Sharp Dohme International vJohn CGrandon dbaConsulspeed Services Independent Ocean Freight Forwarder License No 2011 JTBaker Chemical Company vPolish Ocean Lines JTBaker Chem cal Company vYamashita Shinnihon Line Kawasaki Kisen Kaisha Ltd akaKLine Merck Sharp Dohme International vKraft Foods Corporation vBarber Blue Sea Line Lakes and Rivers Transfer Corporation vThe Indiana Port Commission Leonard TButlerd baManufactures Forwarding Independent Ocean Freight Forwarder Application and Intermodal Sales Inc LHFeder dbaPioneer Institutional Trading Company vElder Dempster Lines Ltd VII Page 238 577 403 682 691 94134 39474 414 9473r 622 324 19223 743 316 799 337 328 691 231 762 679 740 842 466 825 769 396 331 680 553 396 725 328 7372

Page 7: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

Maersk Line Agency for the Benefit of Liberty Gold Fruit Company Maersk Line Agency for the Benefit of Mitsui and Co Maersk Line Agency for the Benefit of Nomura America Corporation Maersk Line Agency for the Benefit of Wespac Corporation Maersk Lines Ltd Cummins Engine Company vMarine Express Line SAvSeatrain nternational SAMatson Navigation Company Del Monte Corporation vMatson Navigation Company Proposed Bunker Surcharge inthe Hawaii Trade Matson Navigation Company Proposed 567Percent Bunker Surcharge inthe Hawaiian Trade Matson Navigation Company Proposed 590Percent Bunker Surcharge ncrease inTariffs FMC FNos 164 165 166 and 167 504 698 Matson Navigation Company Proposed 666Pqrcent Bunker Surcharge ncrease inTariffs FMC FNos 164 165 166 and 167 638 Mc Giffin Company Inc vEller Company Inc IMerck Sharp Dohme nternational vJapan Line Ltd 396 Merck Sharp Dohme nternational vKawasaki Kisen Kaisha Ltd alkla KLine 396 Merck Sharp Dohme nternational vMitsui OSKLines Ltd 396 Mitsui OSKLines Ltd Merck Sharp Dohme International v396 Moore McCormack Lines ncPan American Health Organization v98New York Freight Bureau nternational Agreement Agreement No 5700 26319 Notice oflnquiry Regarding the United Nations Convention onCode of Conduct for Liner Conferences Organic Chemicals Glidden Durkee Division of SCM Corporation vAtlanttrafik Express Service Overseas Shipping Company Agent for East Asiatic Co Ltd ScJohnson Son Inc vPacific Freight Audit Inc vAmerican President Lines Ltd Pacific Freight Audit Inc vSea Land Services ncPacific Westbound Conference Far EastConference and Member Lines Interpool Ltd Itel Corporation Container Division Trans Ocean Leasing Corporation Pacific Westbound Conference United Aero Marine Services Inc vPan American Health Organization vMoore McCormack Lines Inc Pan Ocean Bulk Carriers Ltd nvestigation of Rates onNeo Bulk Commodities inthe Trade Between the United States and South Korea Perry sCrane Service vPOri of Houston Authority of the Pori of Houston Texas Pierpoint Management Company and Retia Steamship Company vHolt Hauling Warehousing System Inc PMCrane Services Inc vPort of Houston Authority of Harris County Texas Poirelle Corsets Inc vConsolidated Express Inc Polish Ocean Lines JTBaker Chemical Company vPort of Houston Authority of Harris County Texas HHCranes Inc vPort of Houston Authority of Harris County Texas PMCrane Services Inc vPort of Houston Authority of Houston Texas Perry sCrane Service vPort of Houston Authority West Gulf Maritime Association vProcedures for Environmental Policy Analysis General Order 45Proceedings for Failure toInclude Provisions for Adequate Self Policing asRequired byGeneral Order 7Prudential Lines ncGirton Manufacturing Co vPuerto Rico Maritime Shipping Authority Genera Increase inRates Puerto Rico Maritime Shipping Authority vSeatrain Gitmo Inc and Trailer Marine Transport Corporation vmFEDERAL MARITIME COMMISSION Page 555 224 249 249 139 205 364 276 486 821 142 816 701 207 207 762 617 98633 30324 334 376 680 73334 30420 560 747 156 134 1636

Page 8: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

TABLE OF CASES REPORTED Pueno Rico Maritime Shipping Authority and Trailer Marine Transpon Corporation Proposed Reduced Rates Rates of Far Eastern Shipping Company Rene Lopez and David Romano dbaUnited Dispatch Services Independent Ocean Freight Forwarder License Ruffin Inc vCosta Annatoria SpAand Italia Di Navigazioni Salon Trading Corporation vSea Land Service Inc SCJohnson Son Inc vOverseas Shipping Company Agent for East Asiatic Co Ltd SeM Corporation vCampania Sud Americana De Vapores Sea Land Inc FMC Corporation vSea Land Inc for the Benefit of Nepera Chemical Inc Sea Land Service Inc Amstar Corporation vSea Land Service Inc Dow Corning Corporation vSea Land Service Inc EDu Pont De Nemours and Company vSea Land Service Inc for the Benefit of Alimenta USA Inc Sea Land Service Inc forthe BenefitofBDP International Inc asAgent for Champion International Export Corporation Sea Land Service Inc for the Benefit of Hayes Furniture Co Inc Sea Land Service Inc for the Benefit of New Era Shipping asAgent for Central National Corp Sea Land Service Inc for the Benefit of Soltex Polymers Corporation Sea Land Service Inc for the Benefit of Trade Winds Imponing Co Sea Land Service Inc Hanover Brands Inc vSea Land Services Inc Pacific Freight Audit Inc vSea Land Service Inc Pacific Westbound Conference forthe Benefit of Church World Service Sea Land Service Inc Sea Land Proposed Five Percent General Rate Increase inSix Poeno Rico and Virgin Island Trades Sea Land Service Inc Proposed Twenty Five Percent General Rate Increases Inthe Puerto Rico Virgin Islands Trades Sea Land Service Inc Salou Trading Corporation vSea Land Service Inc Westinghouse Electric Corporation vSeatrain Gitmo Inc and Trailer Marine Transport Corporation Puerto Rico Maritime Shipping Authority vSeatrain International SAMarine Express Line SAvSeatrain Pacific Services SAJames Betesh Import Company vSelf Policing of Independent Liner Operators Sentinel Line and Anchor Shipping Corporation International Trade Development Inc and Roben HWall Inc vStockton Port District ICharles Lucidi dbaLucidi Packing Company vStop Shop Companies Inc Bradlees Division vBarber Blue Sea Line Sunmark Inc Petition for Declaratory Order TDK Electronics Co Ltd vJapan Lines Ltd and Kawasaki Kisen Kaisha Ltd Terfloth and Kennedy Ltd vAmerican President Lines Ltd The Filing with the Commission of Cargo Statistics Compiled byVarious Conferences of and Rate Agreements between Common Carriers byWater inthe Foreign Commerce Trailer Marine Transport Corporation General Increase inRates Trailer Marine Transport Corporation Proposed General Increase inRates Trailer Marine Transport Corporation Proposed Reduced Rates onSugar Cane Refined Sugar NOSIXPase 341 651 522 611 349 701 680 680 841 47581 706 525 347 226 354 270 481 359 474 207 272 113 561 730 349 267 417 36205 842 416 231 19722 725 714 769 81580 39175 174

Page 9: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

xFEDERAL MARITIME COMMISSION Trimodal Inc Independent Ocean Freight Forwarder Application and Possible Violations of Sections 16Paragraph 18bI18b3and 44United Aero Marine Services Inc vPacific Westbound Conference United States Lines Inc Allied Stores International Inc Subsidiary of Allied Stores Corporation vUnited States Lines Inc Dow Coming Corp vUnited States Lines Inc Emile Bernat Sons vUnited States Navigation Inc Dow Coming Corporation vUSLines Inc Cummins Engine Company vWarner Lambert Ltd vCompania Peruana De Vapores West Gulf Maritime Association vCity of Galveston Board of Trustees oftheGalveston Wharves West Gulf Maritime Association vPort of Houston Authority Westinghouse Electric Corporation vSea Land Service Inc Vamashita Shinnihon Line for the Benefit of Nissho Iwai American Corporation Vamashita Shinnihon Line JTBaker Chemical Company vVSLine Vamashita Shinnihon Steamship Co Ltd TTT Ship Agencies Cummins Engine Company vPage 727 617 725 839 679 143 478 139 725 101 401 420 560 267 417 674 553 139

Page 10: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

387 1420 1440 1441 1460 1487 1509 1530 1550 1566 1574 1575 1593 1594 1607 1628 1629 1643 1646 1653 1666 1667 1684 1688 1693 1701 1704 1708 1750 1606 647 649 652 655 660 664 DOCKET NUMBERS OF CASES REPORTED Pan American Health Organization vMoore McCormack Lines Inc Stop and Shop Companies Inc vBarber Blue Sea Lines Allied Stores International Inc Subsidiary of Allied Stores Corporation vUnited States Lines Inc Stop Shop Companies Inc Bradlees Division vBarber Blue Sea Line Kraft Foods Corporation vBarber Blue Sea Line Poirette Corsets Inc vConsolidated Express Inc General Electric DeColombia SAvFlota Mercante Grancolombiana SAGeorge WMoore Inc vInternational Container Express Inc Interpur ADivision of Dart Industries Inc vBarber Blue Sea Line Excarn Inc vLykes Lines Agency and Costa Lines ScJohnson Son Inc vOverseas Shipping Company Agent for East Asiatic Co Ltd Girton Manufacturing Co vPrudential Lines Inc Ideal Toy Corporation vAtlantic Container Line Girton Manufacturing Company vHellenic Lines Limited Ideal Toy Corporation vAtlantic Container Line Interpur ADivision of Dart Industries Inc vBarber Blue Sea Line Interpur ADivision of Dart Industries Inc vBarber Blue Sea Lines Dow Coming Corp vUnited States Lines SCM Corporation vCompania Sud Americana De Vapores JTBaker Chemical Company vYamashita Shinnihon Line FMC Corporation vArgentine Line FMC Corporation vSea Land Service Inc James Betesh Import Company vSeatrain Pacific Services SADow Coming Corporation vSea Land Service Inc Dorf International Limited vFIota Mercante Grancolombiana SAWarner Lambert Ltd vCompania Peruana De Vapores Dow Coming Corporation vUnited States Navigation Inc JTBaker Chemical Company vPolish Ocean Lines General Electric De Colombia SAvFlota Mercante Grancolombiana SASea Land Inc for the Benefit of Nepera Chemical Inc American President Lines Ltd for the Benefit of Beverly Coat Hanger Company Maersk Line Agency for the Benefit of Nomura America Corporation Maersk Line Agency for the Benefit of West pac Corporation Sea Land Service Inc for the Benefit of Trade Winds Importing Co Sea Land Service Inc for the Benefit of BDP International Inc asfor Champion International Export Corporation Sea Land Service Inc for the Benefit of Hayes Furniture Co Inc Page 98722 725 839 725 725 376 710 691 679 704 701 134 743 94223 679 679 679 680 553 813 841 842 706 419 725 478 680 737 47168 249 249 359 226 354

Page 11: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

xu666 668 671 6678 684 690 710 74157441755176376117614762276577777727772877307742775677J782jII1781178207822782478257826782778287833FEDERAL MARITIME COMMISSION Sea Land Service Inc for the Benefit of New Era Shipping asAgent for Central National Corp Maersk Line Agency for the Benefit of Mitsui and Co Sea Land Service Inc for the Benefit of Alimenla USAInc Sea Land Service Inc Pacific Westbound Conference for the Benefit of Church World Service Yamashila Shinnihon Line for the Benefit of Nissho Iwai American Corpo ration Sea Land Service Inc for the Benefit of Soltex Polymers Corporation Maersk Line Agency for the Benefit of Liberty Gold Fruit Company Japan Line USALtd forJaP lLineLtd for Benefit of Nomura Ameri caCorporation West Gulf Maritime Association vPort of Houston Authority Agreement Nos 8200 8200 18200 2and 8200 3between the Pacific Westbound Conference and the Far East Conference Perry sCrane Service vPort of Houston Authority of the Port of RouslOn Texas LHFeder dlblaI Pioneer Institutional Tradinll Company vElder Dempster Lines Ltd Agreement Nos ISO DR7and 3103 DR7Agreement No 101l6 3Extension of Pooling Arranllement inthe USPacific Coast Japan Trades Lakes and Rivers Transfer Corporation vThe Indiana Port Commission HHCranes Inc vPort of Houston Authority of Harris County Texas Agreement Nos 9929 3et al Trailer Marine Transport Corporation General Increase inRates Gulf Caribbean Marine Lines Inc Generallncrease inRates Puerto Rico Maritime Shipping Authority General IncrejlSe inRates PMCrane Services Inc vPort of Houston Authority of HarrisCounty Texas West Gulf Maritime Association vCity of Galveston Board of Trustees of the Galveston Wharves New York Freight Bureau Intermodal Agree nt Agreement No 5700 26Orllanic Chemicals Glidden Durkee Division of SCM Corporation vAt lanttratik Express Service General Order No 44Part 525 Exemption of Collective Bargaining Agreements Part 53lnterim Baraaining Agreements Terfloth and Kennedy Ltd vAmerican President Lines Ltd ICharles Lucidi dbaLucidi Packinll Company vThe Stockton Port Dis trict Pacific Freight Audit Inc vSea Land Services Inc Pacific Freight Audit Inc vAmerican President Lines Ltd Trimodal Inc Independent Ocean Freight Forwarder Application and Possible Violations of Sections 16Parallraph 18b118b3and 44Merck Sharp Dohme International vKawasaki Kisen Kaisha Ltd alkJa uKLine International Trade Development Inc and Robert HWall Inc vSen tinel Line and Anchor Shipping Corporation Actions toAdjust or Meet Conditions UnfavQrable toShipping inthe Uoiled Page 270 224 347 272 674 481 555 825 420 560 7630372 378 712 79328 73146 393916334 101 401 319 816 682 8119207 207 727 396 231

Page 12: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

78447846784978537917957967977910791179127913791479157916791779187921to26792879297931to3579367937t041 79427943794679477948TABLE OF CASES REPORTED Pierpoint Management Company and Retla Steamship Company vHolt Hauling Warehousing System Inc General Order No 42Part 514 Financial Exhibits and Schedules Non Vessel Operating Common Carriers inthe Domestic Offshore Trades Emile Bernat Sons Co vUnited States Lines Inc Independent Ocean Freight Forwarder Bids onGovernment Shipments at United States Ports General Order No 38AMDT 2Part 53IRegulations Governing the Publishing Filing and Posting of Tariffs inDomestic Offshore Com merce Leonard TButler dbaManufactures Forwarding Independent Ocean Freight Forwarder Application and Intermodal Sales Inc Puerto Rico Maritime Shipping Authority and Trailer Marine Transport Corporation Proposed Reduced Rates Puerto Rico Maritime Shipping Authority vSeatrain Gitmo Inc and Trailer Marine Transport Corporation Rates of Far Eastern Shipping Company Del Monte Corporation vMatson Navigation Company Improvements inPrehearing and Discovery Procedures General Order No 16Arndt 30and General Order No 22Arndt 9Part 502 and Part 503 Updating of Existing Fees and Charges and the Estab lishment of New Fees for Certain Services Provided bythe Federal Maritime Commission Cargo Systems International CSI Independent Ocean Freight Forwarder Application and Possible Violation of Section 44Shipping Act 1916 Westinghouse Electric Corporation vSea Land Service Inc EAllen Brown Independent Ocean Freight Forwarder License No 16Farrell Lines Inc vAssociated Container Transportation Australia Ltd Rederiaktiebolaget Transatlantic PAD Shipping Australia PTY Ltd Exemptions from Provisions of the Shipping Act 1916 and the Intercoastal Shipping Act 1933 Proceedings for Failure toInclude Provisions for Adequate Self Policing asRequired byGeneral Order 7Independent Freight Forwarder License No 1321 lkeda International Corporation Angel Alfredo Romer Independent Ocean Freight Forwarder Applica tion and Foreign Freight Forwarders Inc Possible Viloations of Section 44Shipping Act 1916 Proceedings for Failure toInclude Provisions for Adequate Self Policing asRequired byGeneral Order 7Self Policing of Independent Liner Operations Proceedings for Failure toInclude Provisions for Adequate Self Policing asRequired byGeneral Order 7Merck Sharp Dohme International vMitsui OSKLines Ltd Merck Sharp Dohme International vJapan Line Ltd Expedited Surcharges for Recovery of Carriers Increased Fuel Costs inthe Foreign Commerce of the United States Sea Land Service Inc Sea Land Proposed Five Percent General Rate Increase inSix Puerto Rico and Virgin Island Trades Trailer Marine Transport Corporation Proposed General Increase inRates XIII Page 324 403 143 337 577 7341 36651 364 316 256267 417 583 109 132 156 799 788 156 416 156 396 396 149 113 175

Page 13: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

XIV 79497950795179527953795479557956795779587960796179637964796579667970797379757976797779787979798079817984FEDBRAL MARITIME COMMISSION General Order No 16Amdt 31Part 502 Amending lbe Rule Governing Intervention inCommission Proceedings Notice of Inquiry Regarding lbe United Nations Convention onCode of Conduct for Liner Conferences Procedures for Environmental Policy Analysis General Order 45General Order No 16Amdt 33Part 502 Limiting lbe Grounds Upon which Petitions for Reconsideration of Final Decisions or Orders of lbe Commission may beSought and toRestrict lbe Filing of Petitions for Stay of Commission Orders John CGrandon dbaConsulspeed Services Independent Ocean Freight Forwarder License No 2011 Foss Alaska Line Inc Proposed General Rate Increase Between Seattle Washington and Points inWestern Alaska Matson Navigation Company Proposed Bunker Surcharge inlbe Hawaii Trade Me Giffin Company Inc vEller Company Inc Ruffin Inc vCosta Armatoria SpAand Italia Di Navigazioni Dual Rate Contract Systems inlbe Foreign Commerce of lbe United States Rate Increase onLess lban Ninety Days Notice The Filing wilb lbe Commission of Cargo Statistics Compiled byVarious Conferences of and Rate Agreements between Common Carriers byWater inlbe Foreign Commerce Rene Lopez and David Romano dbaUnited Dispatch Services Indepen dent Ocean Freight Forwarder License No 1381 General Order No 13Amdt 3Part 536 Publishing and Filing Tariffs byCommon Carriers inthe Foreign Commerce of the United States Exemptions and Exclusions Fiat Allis France Materials De Travaux Publics SAvAtlantic Container Line General Order No 13Amdt 2and General Order 43Part 536 Filing of Tariffs byCommon Carriers inthe Foreign Commerce of the United States Part 552 Certification of Company Policies and Efforts toCom bat Rebating inlbe Foreign Commerce of lbe United States General Orders Nos 25and 30Part 50llection Compromise and Termination of Enforcement Claims Part 505 Compromise Assess ment Settlement and Collection of Civil Penalties Under lbe Shipping Act 1916 and lbe Intercoastal Shipping Act 1933 E1DuPont De Nemours and Company vSea Land Service Inc Drayage Service Agreement No 2846 Interpool Ltd Itel Corporation Container Division Trans Ocean Leasing Corporation vPacific Westbound Conference Far East Conference and Member Lines Declaratory Order Request Re Pacific Westbound Conference Agreement No 57115 Cummins Engine Company vYSLine Yarnashita Shinnihon Steamship Co Ltd TTT Ship Agencies Cummins Engine Company vMaersk Lines Ltd Cummins Engine Company vUSLines Inc Salou Trading Corporation vSea Land Service Inc Marine Express Line SAvSeatrain International SAMatson Navigation Company Proposed 590Percent Bunker Surcharge Increase inTariffs FMC FNos 164 165 166 and 167 Page 161 142 747 351 331 86276 486 I611 723 580 522 575 544 489 238 525 498 762 133 139 139 139 349 205 504 698

Page 14: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

7985798679877989799079917992799379957996799979100 79102 801804801180148015DOCKET NUMBERS OF CASES REPORTED Trailer Marine Transport Corporation Proposed Reduced Rates onSugar Cane Refined Sugar Japan Korea Atlantic and Gulf Freight Conference Rules Pertaining toChassis Availability and Demurrage Charges that Result when Chassis are not Made Available TDK Electronics Co Ltd vJapan Lines Ltd and Kawasaki Kisen Kaisha Ltd Hanover Brands Inc vSea Land Service Inc Ernest RLevine dbaGerald Export Import Company vHapag Lloyd APan Ocean Bulk Carriers Ltd Investigation of Rates onNeo Bulk Com modities inthe Trade between the United States and South Korea Matson Navigation Company Proposed 666Percent Bunker Surcharge Increase inTariffs FMC FNos 164 165 166 and 167 General Order No 20Arndt 6Part 540 Security for the Protection of the Public Subpart AProof of Financial Responsibility Bonding and Certification of Financial Responsibility for Indemnification of Passen gers for Nonperformance of Transportation Cancellation of Tariffs for Noncompliance with Tariff Filing Regulations Amstar Corporation vSea Land Service Inc HKInternational Forwarding Inc Independent Ocean Freight Forwarder License Application United Aero Marine Services Inc vPacific Westbound Conference Sea Land Service Inc Proposed Twenty Five Percent General Rate Increase inthe Puerto Rico Virgin Islands Trades Sunmark InCPetition for Declaratory Order Matson Navigation Company Proposed 567Percent Bunker Surcharge inthe Hawaiian Trade General Order No 14Arndt 6Part 527 Shippers Requests and Com plaints Inthe matter of Compensation of Independent Ocean Freight Forwarders General Order No 16Arndt 35Part 502 Revising Rule 67of the Com mission sRules of Practice and Procedure xv174 466 769 474 414 633 638 646 720 581 622 617 561 730 714 821 818 740 832

Page 15: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

DOCKET No 79 56

MCGIFFIN COMPANY INC V ELLER COMPANY INCPETITION FOR A DECLARATORY ORDER

NOTICE OF WITHDRAWAL OF PETITION

July 5 1979

Notice is given that the petition for declaratory order initiating this proceeding has been withdrawn and accordingly the proceeding is hereby discontinued

5 FRANCIS C HURNEY

Secretary

mharris
Typewritten Text
mharris
Typewritten Text
17
Page 16: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W n l

lYlU lq Wlwn xp lJodll Uo l1l Hqnd SllAlS 110M AUll 1llq1 pl1ll1S SllqSS liluoJ A ll l Sll 01 plll J lllJllU lq Il fll1 J s n In Z 61 JO

PV suopllpdolddV S YlO lU PUOOPUI q110 A lll10 SUO S AOld q1 uIs 1 MU ilu

qSlqll1S pUll S ljlllqpUll s 1 ljulS X ilU lllpdn q Sll A S U 1l1lll101 S ZlJllqpUll s 110 Inpqs Sl S Al 01 plSodOld UO SS WUlOJ U1 lPllW Illlpld ql

61 Ll 1 ljll pld 11 6L61 11 qlllW UO JiJ1S fJiJN VJiJPiJd ljl U plljs I

qnd iluIllUl ln plSodOld 10 ll lON II q pl1n1 lsU SIlM ljupllQld Slql

NOIlVW OdNI lVl N3W3lddnS

6L61 llsn21nv 31VO 3AIlJ3dd3

l21pna pUll lU U1l1l

UllW 10llYlO q1 q plqs lqll1SSu pp nlj lpUn pll nbu

S S 21111ljpUll s 1 JO lU U1SS SSIll POPd IOljM II Sll

Iqnd lj1 01 pll lJO 10U lll 1llql Slllnp A pU JqllYlU P 01

pll PUl SllA S 101 Iq ssod lU lX q1 01 SlSOO 10 A AOOl

ljl lUSSll 01 S UO S Al ljl JO sodJnd ljl uO SS U1U1OJ

U1lPllW IlllPd q1 q plP AOld SllA S U 1l1lll101 1MU 10 lU U1ljSlqll1S q1 pUll S illllljpUll s J ilups x 10

ilulllpdn q11Y1 01 plS Al u q Allq fO pUll ZO Slllld

S lnM IllUH

AMVWwns

NOIlJV

6L61 If r

S3JIA M3S 1l0d S33d

NonVWMOlNI JI1Hnd fO 1MVd

3Mna3JOMd aNY 3JILJVMd 0 SiI1n M ZO 1MVd

6 wwy zz M3aMO lYM3N39 aNY

Of wwy 91 M3aMO IVM3N39 n 6L oN 13JOO

SNOISIAOMd IVM3N39 V M31dVHJHnS

NOISSIWWOJ 3WI1IMVW IVM3a3d AI M31dVH

DNlddIHS 91 IIl lJ

NOISSIWWOJ HWIlHIVW 1VlI3 GiH

Page 17: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

RULES OF PRACTICE AND PROCEDURE 3

privilege authority use franchise license permit certificate registration or

similar thing of value or utility performed furnished provided granted prepared or issued by any Federal agency to or for any person shall beself sustaining to the full extent possible In order to bring about the accom

plishment of this objective Title V authorizes the head of each agency to

prescribe by regulation such fees and charges as he shall determine to befair and equitable taking into consideration direct and indirect cost to the

government value to the recipient public policy or interest served and other

pertinent facts

This enabling legislation also provides that the fees and charges shall be as

uniform as practicable and subject to such policies as the President mayprescribe On September 23 1959 the Bureau of the Budget now the Officeof Management and Budget issued Circular No A 25 which sets forth

general policies for developing a fair equitable and uniform system of chargesfor certain government services and property so as to implement the applicableprovisions ofTitle V Essentially Circular No A 25 requires that a reasonable

charge be made to each recipient for a measurable unit or amount of FederalGovernment service from which he derives a benefit in order that the Government recover the full cost of rendering that service The Circular further callsfor a periodical reassessment of costs with related adjustment of fees if

necessary and the establishment of new fees where none exists

Two comments were received in response to the Notice of Proposed Rulemaking The National Capital Area Paralegal Association objects to the establishment of a fee for processing applications of non attorneys to practice beforethe Commission proposed 50343 h Mr Wade S Hooker an attorney whopractices before the Commission has commented on the rise in the charge for

subscription to Commission issuances in formal proceedings proposed section50343 d 1

The Commission proposed to establish a fee of 10 for processing applications of nonattorneys for admission to practice The Association argues thatsuch a fee discriminates against nonattorneys in favor of attorneys who need

only certify that they are a member in good standing ofa state or Federal barThe Association further questions whether nonattorneys should be required to

apply for admission at all We disagree with the position expressed by theAssociation An attorney in good standing has already been examined as to

professional ability and personal qualifications On the other hand a non

attorney applicant may be totally unknown to the Commission The Commission has a duty to assure that persons appearing before it are qualified to

represent others Under the circumstances the requirement for application foradmittance is appropriate and the assessment of amodest fee for processing the

application is proper under Title V

Mr Hooker expresses surprise that the charge for the subscription listshould rise from 30 to 175 annually since the existing price was establishedon February 25 1975 In point of fact the 30 fee was established in 1965and costs associated with providing the service have escalated considerablysince then The most recent survey by the Commission shows the cost ofservice

Page 18: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

4 FEDERAL MARITIME COMMISSION

to be slightly in excess of 200 We have set the revised fee at 175 in

acknowledgement of the public interest standard of Title VIn light of the foregoing we have determined to publish the final rules as

they were proposedTherefore pursuant to the provisions of section 4 of the Administrative

Procedure Act 5U S C 1553 and Title V of the Independent Offices Appropriations Act of 1952 31 U S C 1483 a as implemented by Budget Circular No A 25 dated September 23 19 9 and Rule 52 of the Commission sRules of Practice and Procedure 46 C F R 1502 52 Parts 502 and 503 ofTitle 46 Code of Federal Regulations are amended as set forth hereinafterI Subpart E ofPart 503 Title 46 ofthe Code of Federal Regulations is revisedto read as follows

SUBPART E FEES

1503 41 Policy and Services AvailablePursuant to policies established by the Congress the Government s costs

for special services furnished to individuals or firms who request such serviceare to be recovered by the payment of fees Act of August 31 19515 U S C 1140

a Upon request the following services are available upon the payment ofthe fees hereinafter prescribedI Copying records documents2 Certification of copies of documents3 Records search

b Fees shall also be assessed for the following services provided by theCommissionI Subscriptions to Commission publications2 Placing one s name as an interested party on the mailing list of a

docketed proceeding3 Processing nonattorney applications to practice before the

Commission

150342 Payment of fees and chargesThe fees charged for special services may be paid through the mail by check

draft or postal money order payable to the Federal Maritime Commissionexcept for charges for transcripts of hearings Transcripts of hearings testimony and oral argument are furnished by a nongovernmental contractor andmay be purchased directly from the reporting firm

1 50343 Fees for servicesThe basic fees set forth below provide for documents to be mailed with

postage prepaid If copy is to be transmitted by registered certified air or

special delivery mail postage therefor will be added to this basic fee Also ifspecial handling or packaging is required costs thereof will be added to thebasic fee

AlIenttnce hu been added to 1503 430 to clarify the latent of the propoIOd rule to chifive centl per papP UI cost of1Crvkewhen copyina ill perfonned by Commilalon penonnel

Page 19: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

RULES OF PRACTICE AND PROCEDURE 5

a Photo copying of records and documents performed by requesting partywil1 be available at the rate of five cents per page one side limited tosize 8 1 4 X 14 or smaller

b The certification and validation with Federal Maritime Commission

seal of documents filed with or issued by the Commission will beavailable at 3 for each such certification

c To the extent that time can be made available records and informationsearch and or copying will be performed by Commission personnel forreimbursement at the following rates Any such charges are in additionto a five cent per page charge for copies providedI By clerical personnel at a rate of S per person per hour2 By professional personnel at an actual hourly cost basis to be

established prior to search3 Minimum charge for record and information search S4 Minimum charge for copying services performed by Commission

personnel 1S Exceptions No charge for copying or searching wil1 be made for

providing a single copy of a tariff page on file with the Commission

d Annual subscriptions to Commission publications for which there are

regular mailing lists are available at the charges indicated below forcalendar year terms Subscriptions for periods ofless than a full calendaryear will be prorated on a quarterly basis No provision is made forrefund upon cancellation of subscription by a purchaserI Orders notices rulings and decisions initial and final issued by

Administrative Law Judges and by the Commission in all formaldocketed proceedings before the Federal Maritime Commission are

available at an annual subscription rate of 17 S2 Final decisions only issued by the Commission in all formal dock

eted proceedings before the Commission are available at an annual

subscription rate of SO3 General Orders of the Commission are available at the following

rates I initial set including all current General Orders for a fee of

12 S0 and 2 an annual subscription rate of 2 for all amendmentsto existing General Orders and any new General Orders issued

4 Exceptions No charge wil1 be made by the Commission for noticesdecisions orders etc required by law to be served on a party to anyproceeding or matter before the Commission No charge will be

made for single copies of the above Commission publications indi

vidually requested in person or by mail In addition a subscriptionto Commission mailing lists will be entered without charge when

one of the following conditions is presenti The furnishing of the service without charge is an appropriate

courtesy to a foreign country or international organizationii The recipient is another governmental agency Federal State

or local concerned with the domestic or foreign commerce bywater of the United States or having a legitimate interest in

the proceedings and activities of the Commission

Page 20: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

6 FEDERAL MARITIME COMMISSION

iii The recipient is a college or universityiv The recipient does not fall into paragraphs d 4 i ii or

ill of this section but is determined by the Commission to be

appropriate in the interest of its programe To have one s name and address placed on the mailing list of a

specific docket as an interested party to receive all issuances pertaining to that docket cost 53 per proceeding

f The Commission publication entitled Automobile ManufacturersMeasurements is available on a fiscal year subscription basis including any supplements issued during the fiscal year in whichpurchased for a fee of 55

g Looseleaf reprint of the Commission s complete current Rules of

Practice and Procedure for an initial fee of 52 50 Future amendments to the reprint are available at an annual subscription rate of

5150h Applications for admission to practice before the Commission for

persons not attorneys at law must be accompanied by a fee of 510pursuant to i502 27 of this ChapteriUpon a determination by the Commission that waiver or reduction

of the fees prescribed in this section is in the public interest becausethe information furnished has been determined to be of primarybenefit to the general public such information shall be furnishedwithout charge or at a reduced charge at the discretion of the

CommissionU Additional issuances publications and services of the Commission

may be made available for fees to bedetermined by the ManagingDirector which fees shall not exceed the cost to the Commission forproviding them

II The second sentence of 46 C FR i502 27 is amended to read as follows

Applications by persons not attorneys at law for admission to practicebefore the Commission shall be made on the forms prescribed therefor which may be obtained from the Secretary of the Commissionshall be addressed to the Federal Maritime Commission WashingtonD C 20573 and shall be accompanied by a fee as required by i 50343 h

of this ChapterBy the Commission

1

8 FRANCIS C HURNEYSecretary

Page 21: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

DOCKET No 79 5

LEONARD T BUTLER D B A MANUFACTURERS FORWARDINGINDEPENDENT OCEAN FREIGHT FORWARDER APPLICATION AND

INTERMODAL SALES INCPOSSIBLE VIOLATIONS OF SECTIONS IS AND 18 b 3

NOTICE

July 11 1979

Notice is given that no exceptions have been filed to the June S 1979 initialdecision in this proceeding and the time within which the Commission coulddetermine to review that decision has expired No such determination has beenmade and accordingly that decision has become administratively final

S FRANCIS C HURNEY

Secretary

Page 22: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

No 79 5

LEONARD T BUTLER D B A MANUFACTURERS FORWARDlNG

INDEPENDENT OCEAN FREIOHT FORWARDER APPLICATION AND

INTERMODAL SALES INC POSSIBLE VIOLATIONS OF

SECTIONS 15 AND 18 b 3

Finalized July 11 979

Violations of sections 15 and 18 b 3 of Shipping Act 1916 found

Because of violations and lack of showing of mitigation to warrantgranting of license as independent ocean freight forwarder upon this record the application is denied

Thomas E DurkinJr

for respondent applicantJoseph Slunt Deana E Rose and J Rabert Ewers Director of Commission s Bureau of Hearing

Counsel for Hearing Counsel

INITIAL DECISION I OF WILLIAM BEASLEY HARRISADMINISTRATIVE LAW JUDGE

This is a proceeding in which an independent ocean freight forwarder license

is sought by Leonard T Butlerd b a International Sales Inc Investigation ofthe application raised possible violations of sections IS and 18 b 3 of the

Shipping Act 1916

The Presiding Administrative Law Judge takes official notice that the original application dated November 22 1977 sought a license for Leonard T

Butler d b a Transmodal Forwarding Company The Commission began its

investigationAfter mesne process an amended application dated May 15 1978 wasfiled

and license was sought for Leonard T Butler d b a Manufacturers Forward

ing to be establishedPursuant to section 510 8 of the Commission s General Order 4 46 C F R

5510 8 the Commission on October 30 1978 advised Leonard T Butlerd b a Manufacturers Forwarding of its intent to deny the application for the

I This decllon will become the decision of the Commiasion in abtonoe of review thereof by the Commission Rule 227 Rules

of PraClioe nd Procedura 46 CF R 1502227

mharris
Typewritten Text
8
Page 23: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

POSSIBLE VIOLATIONS OF SECTIONS 15 AND 18 b 3 9

reasons set out hereinafter In accordance with General Order 4 an applicant may within 20 days of receipt of such advice request a hearing on theapplication

By letter dated November 6 1978 Leonard T Butler d b a ManufacturersForwarding requested the opportunity to show at a hearing that the denial ofthe application is unwarranted

On January 24 1979 the Commission served the instant Order ofInvestigation and Hearing published in the FederalRegister January 29 1979 Vol 44No 20 pages 5713 5714 It indicates that during the course of the Commission s investigation of Leonard T Butler d b a Manufacturers Forwardinginformation was received possibly indicating that

1 Intermodal Sales Inc of which Mr Butler is President and majority stockholder under the trade name Intermodal Services Inc maintains with theCommission an NVOCC tariff as required by section 18 Shipping Act1916 Evidence deduced in the course of the investigation appeared todemonstrate that Intermodal Services Inc violated section 18 b 3 Shipping Act 1916 46 V S C 817 on at least eleven of the nineteen shipments it handled during the period January 15 1978 through May 12 1978in charging demanding or collecting a greater lesser or different compensation for the transportation of property than the rates and charges specifiedin its tariff on file with the Commission

2 Intermodal Sales Inc d b a Intermodal Services Inc appeared to violatesection 15 Shipping Act 1916 46 V S C 814 in that it and SeawayExpress Lines a vessel operating common carrier by water entered into an

exclusive non competitive cooperative working agreement subject to the

filing and approval requirements of the aforementioned section 15 implementing that agreement in carrying out its terms without the pre requisiteCommission sanction

In view of the above Leonard T Butler 52 owner and President ofIntermodal Sales Inc would appear to lack the fitness to properly carry on thebusiness of forwarding and to conform to the provisions of the Shipping Act1916 and the requirements rules and regulations of the Commission issuedthereunder as required by section 44 and the Commission s Rules and Regulations issued pursuant to section 44 of the Shipping Act 1916

The Commission ordered that pursuant to sections 15 18 b 22 and 4446 US C U814 817 821 and 841 b of the Shipping Act 1916 and

section 510 8 of the Commission s General Order 4 46 C F R 510 8 it bedetermined

1 Whether lntermodal Sales Inc d b a Intermodal Services Inc has violatedsection 15 Shipping Act 1916 by entering into an exclusive non competitivecooperative working agreement with Seaway Express Lines without the

prerequisite Commission approval2 Whether Intermodal Sales Inc d b a Intermodal Services Inc has vio

lated section 18 b 3 Shipping Act 1916 by transporting property at ratesand charges otherthan those specified in its tariffon filewith the Comissionand

Page 24: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

10 FEDERAL MARITIME COMMISSION

3 Whether in light of the evidence adduced pursuant to the foregoing issuestogether with any other evidence adduced Leonard T Butler d b a

Manufacturers Forwarding possesses the requisite fitness within the mean

ing of section 44 b Shipping Act 1916 to properly carry on the businessof forwarding and to conform to the provisions of the Shipping Act 1916and the requirements rules and regulations of the Commission issuedthereunder

The named respondents herein are 1 Leonard T Butler d b a Manufacturers Forwarding and 2 Intermodal Sales Inc

By notice served January 30 1979 a prehearing conference was scheduledfor Thursday February 22 1979 Counsel for respondent telephoned the Presiding Administrative Law Judge on February 16 1979 pleading he was on

call for cases in his own jurisdiction and requested a postponement By noticeserved the former date which was preceded by telephone notice to all partieson February 16 1979 of the change the prehearing conference was re

scheduled and held on Monday February 26 1979 The official stenographictranscript thereof consists of 12 pages Hearings began and concluded on

Monday March 12 1979 The transcript of the hearing consists of 50 pagesThe total pages of transcipt are 62 Two 2 exhibits were introduced andreceived into evidence The briefing schedule developed was 1 opening briefof respondent applicant to befiled on April 9 1979 Tr of Hearing at 48 line25 change 1978 to 1979 2 Hearing Counsels reply briefto be filedon April23 1979 and 3 the closing brief of respondent applicant to be filed on

May 7 1979 Tr 49The opening brief of respondent applicant was received in the Commission

on Aprilll 1979 it had been mailed by Registered Mail No 854603 fromNewark New Jersey on April 6 1979 Hearing Counsels Reply Brief was

received in the Commission on April 23 1979 On May 10 1979 the PresidingAdministrative Law Judge received from counsel for the respondent applicanta letter dated May 8 1979 stating inter alia Iacknowledge receipt of theBrief of Hearing Counsel and Iwould respectfully advise that Ido not see theneed for any further submissions

Hearing Counsel in its brief proposed 18 findings of fact Brief at 3 to 5The respondent applicant s brief proposed no findings of fact Hearing Counsels requests upon consideration are granted in substance or denied as shownin the following section entitled Facts

The transcript of testimony and exhibits together with all papers and re

quests filed in this proceeding constitutes the exclusive record for the findingof facts and for decision Rule 169 46 C F R 5502 169

FACTS

1 Intermodal Sales Inc a sales agency and marketing arm for variouscarriers Tr 36 does business as Intermodal Services Inc It was founded in1971 72 by Leonard T Butler Intermodal Services Inc has on file with thisCommission NVOCC Freight TariffNo 1 the original effective date of thetariff was October 2 1976 between United States Atlantic Gulf and Pacific

Page 25: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

POSSIBLE VIOLATIONS OF SECTIONS 15 AND 18 b 3 11

Coasts Puerto Rico Hawaiian and Alaskan Ports The tariff is worldwide TheIssuing Officer of the tariff of Intermodal Sales Inc is Leonard T Butler1st Revised Title Page effective November 21 1978

2 Intermodal Sales Inc a corporation of the State of New Jersey Exh IAttachment A page I admitted it is stipulated all demands for admission ofExh I are acknowledged in the affirmative Tr 4 its officers are

Leonard T Butler President and 52 shareholder of the companyReuben Klein Executive Vice President and 48 shareholder of the

companyMarilyn T Butler Secretary and holder of no stock interest therein

3 Intermodal Services Inc issued the following bills of lading under which

shipments were carried at rates other than those in its NVOCC tariff

BIL No10II

18192021

Dated1 15 78115 782 26 782 28 782 28 783 08 78

22

24262728

2 28 78

3 24 784 23 785 12 785 12 78

CommodityConstruction MaterialCopper WireRigid Steel GalvanizedStranded Cable AlphaKV Single Phase Shielded CableKitchen Laundry Other Equipment for Units of

Ministry of HealthKitchen Laundry Other Equipment for Units of

Ministry of HealthCabinet SectionsConduit PipesOperation Rods for Disconnect SwitchesCast Iron Pipe Accessories of Piping Fittings

The filing of the tariffs and tariff changes pertaining to the rates assessed theabove shipments was delegated to a company in that business Tr 13 and toReuben Klein Tr 37

4 Under date of September 24 1976 Intermodal Sales Inc entered intoa Sales Agency Agreement with Klevan Associates Incorporated a corporationof the State of Pennsylvania Klevan is the owner and operator of a certaincontainer service more commonly known and referred to as Seaway ExpressLines a Panamanian Corporation Under the terms of the said agreementIntermodal Sales Inc is to act as Seaway s exclusive sales and marketingagent in the United States for those services rendered by Seaway in its con

tainer services between the United States Taiwan and Korea a noncompetitiveclause in the agreement provides that during the term thereof Intermodal willnot represent any carrier or carriers who offer similar container servicesbetween the United States and Taiwan and Korea Exh I At I and Attachment A Tr 36 The term of the agreement was for a twoyear period and was

to renew itself for a period of two years The agreement was signed forIntermodal Sales Inc by Leonard T Butler President Mr Butler testified the

relationship with Seaway was terminated in September of 1978 Tr 405 Intermodal Sales Inc operated under the terms and tenure of the said

Sales Agency Agreement with Klevan However Intermodal Sales Inc did

Page 26: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

12 FEDERAL MARITIME COMMISSION

not file that agreement with this Commission Tr 36 for approval pursuantto section IS Shipping Act 1916

6 Applicant Leonard T Butler asked to outline his activities over the lastten or fifteen years particularly within the ambit of the shipping industryTr 35 testified he held marketing and agent positions as follows

1964 to 1968 with Sea Land Tr 351968 to 1972 with Seatrain1972 started his own business Intermodal Sales

After founding of his own business the agreements or associations are

between his company Intermodal Sales and others Tr 43

1973 to 1975 agent for Zim Container Services Tr 441974 to 1975 agent for Medspan Shipping1976 to I977 agent for Mercantile Marine a vessel operating carrier Tr 441976 to 1977 agent for Iran Overland Tr 441976 to 1978 Sales Agency Agreement with Kleven Associates

1978 Sales Agency Agreement with Oceans International agent for LignesCentre Africaine

DISCUSSION REASONS FINDINGS AND CONCLUSIONS

Leonard T Butler testified that he did not file the September 24 1976

Seaway and Intermodal agreement with the Commission Tr 36 Asked Isthere a reason why you didn tso file if in fact you were required to filehe

answeredI had a previous contract the contract that is mentioned here is subsequent to a previous contract

with Seaway as sales agent Because in the services I performed for Seaway sales I did not knowthat there was anything else required At the time I entered into that contract I did noteven havea tarill as an NVO

The applicant in his brief at page 3 argues that

ACknowledging fully that the responsibility to so file may not be necessarily excused by any suchclaim the seriousness of such failure may be however ameliorated if such an explanation isbelieved

Hearing Counsel in its Reply Brief at 2 states

By stipulation respondents affirmatively admitted all facts contained in Hearing Counsel s Request for Admissions Exhibit Ithereby admitting the facts pertinent to tbe sections 18 b 3and 15 issues

The circumstances of this case demand that the Presiding AdministrativeLaw Judge agree with Hearing Counsel that the respondent has admitted thefacts pertinent to the sections 18 b 3 and 15 issues Therefore hefinds and

concludes that Intermodal Sales Inc d b a Intermodal Services Inc has

violated section IS Shipping Act 1916 by entering into an exclusive non

competitive cooperative working agreement with Seaway Express Lines without the prerequisite Commission approval and has violated section 18 b 3

Shipping Act 1916 by transporting property at rates and charges other thanthose specified in its tariff on file with the Commission

Page 27: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

POSSIBLE VIOLATIONS OF SECTIONS 15 AND 18 b 3 13

It is to amelioration if any as to the violations of sections 15 and 18 b 3

of the Shipping Act 1916 that attention is directed The applicant as indicated above testified he was unaware of the filing requirements under section15 to which Hearing Counsel counters Brief for Hearing Counsel at 7

ignorance of the law is no excuse nor is inadvertence citing Investigation ofRates in theHong Kong United States Atlantic and GulfTrade Docket No1083 11 F MC 168 178 1967 The latter citation points to section 18 b 3violations The Commission wrote

We have no authority under section 18 b 3 to dismiss acharge simply because it may have beenan isolated violation or an honest mistake though we may couple our finding ofviolation with suchother factual determinations as may tend to mitigate the seriousness of the offense

InvestigationofRates in the Hong Kong United States At antic and GulfTrade IIF M C at 178

The parties do not dispute the facts as to allegations of violations of sec

tion 15 and section 18 b 3 as is evidenced by Exhibits I and 2The only lawful rate which acarrier may charge is that rate appearing in the

carrier s filed tariff This rate must be charged and paid regardless ofseeminglyinnocent justification for departure such as mistake inadvertence or contraryintention of the parties United States v Pan American Mail Lines Inc359 F Supp 728 733 S D N Y 1972

The applicant argues in his brief at page 5 that the involved tariff was filedso as to become effective October 2 1976 He says Brief for Applicant at 6that the tariff when effective concerning rates or charges contained only a

single factor cargo N O S not otherwise specified WM 295 that this rate

ofcourse and as is usual was never intended to be utilized commerciaJly butwas in fact established so as to be in compliance with the requirements of a

tariff filing However it is argued by the applicant Brief for Applicant at 7

speaking of the 11 Bills of Lading in Exhibit I Attachment B that no

potential shippers received any advantage nor were they disadvantaged by anyrate quoted to any of the involved shippers in the instances here illustratedThen the applicant poses the questionIsn t this aspect of the Commission s case at very best extremely technical and ministerial and isit not clearly distinguishable from the usual and ordinary tariff violation

Brief for Applicant at p 8

Hearing Counsel assert at page ten of his brief that the applicant argueswithout record support that no shipper was advantaged or disadvantaged by theadmitted improper tariff assessments

The Presiding Administrative Law Judge is not persuaded by the questionsasked by the repondent applicant that mitigation is found in them because the

arguments and the law presented by Hearing Counsel is more persuasive thatthe situation is proved by a preponderance of the evidence that the PresidingAdministrative Law Judge must and does find and conclude that violations ofsections IS and 18 b 3 have been committed by the respondent and that no

mitigating circumstances have been shown in these areas

Now as to whether Leonard T Butler d b a Manufacturers Forwardingpossesses the requisite fitness within the meaning of section 44 b Shipping

Page 28: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

14 FEDERAL MARITIME COMMISSION

Act 1916 to properly carry on the business of forwarding and to conform to

those provisions of the Shipping Act 1916 and the requirements rules and

regulations of the Commission issued thereunder The applicant argues Brief

for Applicant at 2 that he individually must be deemed to be fit willing and

able to properly carry out the business and functions of a forwarder that it

must be accepted as irrefutable fact that there is no issue nor is there contro

versy as to the moral characteristics or reputation of the applicant ld He

concludes ld at 10 the applicant possesses all of these moral traits and

characteristics required and desired of an applicantHearing Counsel contends that Leonard T Butler d b a Manufacturers

Forwarding does not possess the requisite fitness to be licensed as an independent ocean freight forwarder Brief for Hearing Counsel at II Counsel cites

Harry Kaufman Independent Ocean Freight Forwarder Docket No 71 47

16 F M C 256 271 1973 for the Commission enunciated standard of con

duct required of an applicant seeking a license

It is crucial to his fitness that it appear that the applicant intends to and will in good faith adhere

to such high standard of conduct and that he intends to and will obey the Commission s rules

and policies for the conduct of licensed freight forwarders

The Hearing Counsel argues that the existence of past Shipping Act violations

by an applicant for a freight forwarder s license is highly pertinent to the issueof whether the applicant intends to or willobey the Us shipping laws Brieffor Hearing Counsel at II Hearing Counsel points out that the Commission

recently denied a freight forwarder application in Concordia International

Forwarding Corporation Independent Ocean Freight Forwarder Applicationand Possible Violation ofSection 44 Shipping Act 1916 Docket No 78 34

18 SRR 1364 1371 FMC 1978 exhorting that disregard of the shippingstatutes would not be tolerated The Commission said In determiningwhether an applicant possesses the requisitness fitness a past violation of the

Shipping Act militates against the issuance of a license Brief for HearingCounsel at 12 Hearing Counsel contends that the activities of Leonard T

Butler President of Intermodal Sales Inc d b a Intermodal Services do not

constitute the standard of conduct the law imposes upon those seeking to be

licensed as an ocean freight forwarder ld at IS that the applicant has failedto meet his burden of demonstrating his character qualifications and fitness to

operate as a freight forwarder and to conform to the provisions of the ShippingAct and that the Commission should deny his application

As has been indicated above the applicant made no reply to Hearing Counsel s Reply Brief other than to submit a letter repeated now I acknowledgereceipt of the Brief of Hearing Counsel and Iwould respectfully advise that 1do not see the need for any further submissions

The parties do not dispute certain facts in this case The undisputed facts are

deemed by the Presiding Administrative Law Judge to support the position of

Hearing Counsel against the applicant The applicants attempt to show miti

gation of circumstances so as to warrant granting ofthe license as an independent ocean freight forwarder is unpersuasive and falls short of showing such

mitigation

Page 29: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

POSSIBLE VIOLATIONS OF SECTIONS 15 AND 18 b 3 15

The Supreme Court has held that the only lawful rate which a carrier may

charge is that rate appearing in the carriers filed tariff This rate must be

charged and paid regardless of seemingly innocent justification for departuresuch as mistake inadvertence or contrary intention of the parties LouisvilleNashville Ry v Maxwell 237 U S 94 35 S Ct 494 59 LEd 853 1915

FINDINGS AND CONCLUSIONS

Upon consideration of all the aforesaid the Presiding Administrative Law

Judge finds and concludes in addition to the findings and conclusions here

inbefore stated1 Applicant Leonard T Butler s Intermodal Services Inc violated section

18 b 3 Shipping Act 1916 on at least eleven of the nineteen shipments it

handled during the period January 15 1978 through May 12 1978 in charging demanding or collecting a greater lesser or different compensation for the

transportation of property than the rates and charges specified in its tariff on

file with the Commission

2 Intermodal Sales Inc d b a Intermodal Services Inc violated sec

tion 15 Shipping Act 1916 in that it and Seaway Express Lines a vessel

operating common carrier by water entered into an exclusive noncompetitivecooperative working agreement subject to the filing and approval requirementsof the aforementioned section 15 implementing that agreement in carrying out

its terms without the prerequisite Commission sanction

3 In view of the above Leonard T Butler 52 owner and President of

Intermodal Sales Inc is found to lack the fitness to properly carryon the

business of forwarding and to conform to the provisions of the Shipping Act

1916 and the requirements rules and regulations of the Commission issued

thereunder as required by section 44 and the Commission s Rules and Regulations issued pursuant to section 44 of the Shipping Act 1916

WHEREFORE IT IS ORDERED subject to review by the Commission

as provided in the Commission s Rules of Practice and Procedure that

A Leonard T Butler d b a Intermodal Sales Inc is found to have vio

lated sections 15 and 18 b 3 of the Shipping Act 1916 as indicated herein

B The application ofLeonard T Butler d b a Manufacturers Forwardingfor an independent ocean freight forwarder license be and hereby is denied

S WILLIAM BEASLEY HARRIS

Administrative Law JudgeWASHINGTON D C

June 5 1979

Page 30: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

DOCKET No 77 30

PUERTO RICO MARITIME SHIPPING AUTHORITYGENERAL INCREASE IN RATES

NOTICE

July 11 1979

Notice is given that no appeal has been filed to the June I 1979 order ofdiscontinuance in this proceeding and the time within which the Commissioncould determine to review that order has expired No such determination hasbeen made and accordingly that order has become administratively final

S FRANCIS C HURNEY

Secretary

mharris
Typewritten Text
16
Page 31: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

No 77 30

PUERTO RICO MARITIME SHIPPING AUTHORITYGENERAL INCREASE IN RATES

DISCONTINUANCE OF PROCEEDING

Finalized July II 1979

The Commission instituted this proceeding in an Order of Investigationserved on July 7 1977 in order to investigate the reasonableness of a 104

general rate increase by the Puerto Rico Maritime Shipping AuthorityPRMSA effective June 19 1977 The Commission specifically directed that

a hearing not be held until a Commission decision had been issued in a related

on going proceeding Docket No 75 38

On August 16 1978 Administrative Law Judge William Beasley Harris

issued his decision upon remand in Docket No 75 38 finding the increase

therein under investigation to be just and reasonable No exceptions were filed

and on September 21 1978 the Commission determined not to review that

decision The period for requesting appellate review of the decision expired in

November 1978 with no review petitions having been filed

Subsequent to the above events concerning 75 38 a tentatively scheduled

prehearing conference for the instant proceeding was postponed at the requestof Hearing Counsel to allow for informal review of PRMSA s auditedfinancial

reports by staff experts working with Hearing Counsel That review has been

completed and Hearing Counsel now has no challenge to PRMSAs data or

conclusions relating to revenues rate of return on rate base or the need for the

subject general rate increase See also summarized data set forth in PRMSAs

April 27 1979 Motion To Discontinue Proceeding at 3 4

PRMSA filed a Motion To Discontinue Proceeding on April 27 1979 to

which Hearing Counsel filed a reply on May 11 1979 Hearing Counsels

Reply makes the point that merely because a given rate increase has been in

effect for an extended period of time and has been superseded by yet another

increase in rates does not in and of itself mandate a discontinuance of the

proceeding citing the Commission s decision in the Matson proceedingF MC Docket 76 43 Dec 12 1978 18 SRR 1351 1352 However Hear

ing Counsel joins in the Motion ForDiscontinuance herein on the basis that the

mharris
Typewritten Text
17
Page 32: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

18 FEDERAL MARITIME COMMISSION

financial data clearly show that PRMSA s 104 general rate increase is justand reasonable indeed the Commission s Office of Economic Analysis hasexpressed concern regarding the relatively low level of profitability ofPRMSA s operation Hearing Counsel agrees that no useful purpose would beserved by continuing this investigation I find that the financial summaryset forth by PRMSA in its Motion for Fiscal Year 1978 support thoseconclusions

Accordingly the motion is granted and the proceeding is ordered to bediscontinued

S THOMAS W REILLYAdministrative Law Judge

June I 1979

Page 33: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

DOCKET No 78 22

ICHARLES LUCIDI D B ALUCIDI PACKING COMPANY

v

THE STOCKTON PORT DISTRICT

NOTICE

July 17 1979

Notice is given that no exceptions have been filed to the June 8 I979 initial

decision in this proceeding and the time within which the Commission coulddetermine to review that decision has expired No such determination has been

made and accordingly that decision has become administratively final

S FRANCIS C HURNEY

Secretary

mharris
Typewritten Text
mharris
Typewritten Text
19
Page 34: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

No 78 22

ICHARLES LUCIDI D B A LUCID PACKING COMPANY

v

THE STOCKTON PORT DISTRICT KILL PEST INCDELK TERMINEX PEST CONTROL TERMINEX

INTERNATIONAL INC COOK INDUSTRIES INC

Finalized July 7 1979

Respondent Port of Stockton is not in violation of section 16 First in that It does not give anyundue or unreasonable preference or advantage to any particular person locality or description of traffic

Respondent Port of Stockton is not in violation of section 16 First in that it des not subjectcomplainant to any undue or unreasonable prejudice or disadvantage

Respondent Port of Stockton is inviolation of section 17 in that Item 85 of Its Terminal TariffNo 4 constitutes an unjust or unreasonable regulation and practice related to or connectedwith receiving handling storing or delivering property

C Richard Wallers for complainant ICharles Lucidi d b a Lucidl Packing CompanyEdwin Mayall for respondent Stockton Port DistrictFrank Wagner for intervenor Port of Los Angeles CaliforniaJohn Robert Ewers Aaron W Reese and Bruce Love Hearing Counsel

INITIAL DECISION OF STANLEY M LEVYADMINISTRATIVE LAW JUDGE I

Charles Lucidi d b a Lucidi Packing Company Lucidi complainantherein filed a civil action in the Supreme Court of California against theStockton Port District Stockton or Port respondent herein seeking recoveryfor alleged damage to property of Lucidi while on the terminal facilities ofStockton Itwas alleged that 25 710 bags of sesame seeds became infested withrodent and bird droppings while being stored on Stockton s terminal facilities

I ThiJ decillan will become the decillan of tho Commiuion in tho abooof miow thof by tho Commilalon Rule 227 Rulof Practioe and Procoduro 46 CF R 1502227

mharris
Typewritten Text
mharris
Typewritten Text
mharris
Typewritten Text
mharris
Typewritten Text
20
Page 35: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

I CHARLES LUCIDI V THE STOCKTON PORT DISTRICT 21

Stockton pleaded as an affirmative defense the provisions of item 85 of itsTerminal TariffNo 4 Item 85 provides

The Port of Stockton shall notbe responsible for any injury to freight on or in its facilities by fireleakage evaporation natural shrinkage wastage decay animals rats mice other rodents mothsweevils other insects weather conditions sweat moisture the elements ordischarge of water frombreakdown of plant machinery other equipmen collapse of building or structure insurrectionwar or shortage of labor for delay loss or damage arising from riots strikes labor or otherdisturbances of any persons or of any character beyond the control of the Port of Stockton

The California Court recognizing the Commission s primary jurisdictiongranted the port s motion to stay the trial of the civil action pending a determination by the Commission as to the validity of Item 85

Thereupon in compliance with the order of the California Court this com

plaint was filed naming the Stockton Port District Kill Pest Inc Delk Terminex Pest Control Terminex International Inc and Cook Industries Increspondents The complaint does not identify any of the named respondentsother than Stockton nor does it make any allegations concerning them Therecord contains nothing to show that the named respondents other than theStockton Port District are other persons subject to the Shipping Act andtherefore they are dismissed as parties in this proceeding

Complainant contends that Item 85 is unjust unreasonable and void on itsface as against public policy as it purports to exculpate the Port from the

consequences of its own fault or negligence Complainant further contends thatthe tariff item is unlawfully discriminatory against complainant

The Port of Los Angeles California Los Angeles having shown an interestin this proceeding was permitted to intervene

Discovery havmg been completed all counsel agreed that the documentsdeveloped during discovery provide an adequate record for disposition of thisproceeding and that there remain no genuine issues of material fact whichrequire oral testimony and cross examination Accordingly seven documentswere admitted as exhibits in evidence and with the brief filed herein constitutethe complete record in this proceeding as follows

Ex 1 Respondents first set of answers to Hearing Counsels InterrogatoriesEx 2 Respondent s second set of answers to Hearing Counsel s Interroga

toriesEx 3 Respondent s answers to Complainant s InterrogatoriesEx 4 Deposition of Walter H MerymanEx 5 Deposition of Owen E BlockEx 6 Further Responses of Walter Meryman to Interrogatories and Deposi

tion Questions andEx 7 Central National Insurance Company policy insuring the Port ofStock

ton for the period December 9 1975 to December 9 1978

An opening brief was filed by Hearing Counsel and Lucidi adopted as itsown opening brief the opening brief of Hearing Counsel

Reply briefs were filed by Stockton and by Los Angeles

Page 36: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

22 FEDERAL MARITIME COMMISSION

ISSUES

The issues to be resolved in this proceeding are whether the tariff provisionof the Port of Stockton which has been challenged by complainant I resultsin undue or unreasonable preference or advantage or in any undue or unreason

able prejudice or disadvantage in any respect whatsoever within the meaningofsection 16 First 2

or 2 constitutes an unjust orunreasonable regulation andpractice related to or connected with receiving l1andling storin or deliveringproperty within the meaning of section 17 Second Paragraph

FINDINGS OF FACT

1 Respondent the Stockton Port District was created pursuant to the

provisions of the Harbors and Navigation Code of the State of California2 The Port is an operating port as distinguished from a non operating or

landlord port3 The Port operates marine terminal facilities providing various terminal

services with its own employees The Port provides terminal services and facilities to break bulk vessels bulkcarriers and a combination of break bulk andcontainer vessels The terminal services furnished by the Port include dockagewharfage free time wharf demurrage terminal storage and cargo handling 4

As such the Port is a person subject to the Shipping Act 1916 as defined insection I thereof

4 The Port has published and filed with the Commission a tariff effectiveNovember I 1977 relating to its terminal services which is designated Terminal Tariff No 4 The Port also publishes a tariff designated General TariffNo 1

S When outbound cargQ arrives at Port facilities the Port issues a dockreceipt When inbound cargo is delivered to a place of rest on its facilities byindependent stevedoring companies the Port takes custody of the cargo untilit is delivered to trucks or rails cars

6 The Portparticipates in the activities of the CalifOrnia Association ofPortAuthorities CAPA The Committee on Tariffs and Practices ofCAPA meets

from time to time to discuss and agree upon rates and charges for wharfagedockage and related port services The Committee and the full Association

Section 16 Fin 01 the ShlppinJ Act 1916 46 US c 8U docI 1t unl wful ro any common carrie by wale 0 otherpenon IUbject 10 the Act

To makeorJive any undue orunreasonable preforence oradvantap toany particularpenoa locaUty ordelcription oftratftcin any IelIpect whauoever orto lubjeet any panicular penon Iooa1lty ordelCrlpdon of traffic to any undueorunreuonabll

projudle ordlllldvantap in any lllpect whatlOlVOJ

Section 17 Seoond P asr ph 01 the Sh4Pinl Act 1916 46 US C 816 providooEvery luch rrier and overy other penon subject to lbll act hall tablilh oblelw and onfonll jut and reasonable

Iul tlon nl pracllcaa latlnllo 0 neeled with the Ivln hanllln torJna 0dallverinl 01 properly Whentho Commluion ftndl that any IUCb reavlation orpracrtlgels unjUIt orURrAIOnabltlt may detennint prescribe and orderenforced a just and reaaonablo nlavlation or practico

The Commi lon In ordat 10 diach III noibllltiaa under oecton17 01 the Shlppinl Act adopted OeM IOnIer IS46 C F R 1533 which requlrea CYClry terminal operator to flle with tho Commiaion a tariff mowina all U ratecharpa rutanl lul tlon m lInllo orcon with theIYiq h nlIInI IIo nl or daU 01proparty tllllei 1 racilitlao

Sea 46 CF R m 6 d

Page 37: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

I CHARLES LUCIDI Y THE STOCKTON PORT DISTRICT 23

discussed and agreed to wharfage increases which were adopted and placedinto effect by the Port in 1974 1975 1976 1977 and 1978

7 There has been no consideration of the provisions of Item 85 ofStockton s

tariff or of similar provisions in the tariffs of any other ports Ex 48 The Port does not solicit bids for its liability insurance nor are specifica

tions written for the procurement of insurance Liability insurance is obtainedthrough independent brokers who are given a copy of existing policies andinstructed to obtain the same coverage as provided by the policies which are

expiring Ex 59 At the time of the alleged damage to complainant s property which was

the basis of the civil action filed in the Superior Court ofCalifornia May 141974 the Port has property damage insurance with total liability limits of

16 000 000 with a 1 000 deductible clause10 The Ports liability insurance is issued by the Central National Insur

ance Company of Omaha Nebraska for a three year term commencing December 9 1975 That policy covers the liability ofthe Port for physical loss or

damage to property of customers of the Port The policy does not inter aliacover liability of the assured Port

a For property held as storage in transit under the terms of an applicablebill of lading issued by the assured

b For loss or damage caused by or arising out of ordinary wear and tear

gradual deterioration dampness or atmosphere extremes of temperatureinherent vice or latent defect

c For damage sustained due to and resulting from any repairing restorationor retouching process unless caused by fire

d For loss due to delay loss of use or loss of market

11 Lucidi s cargo of sesame seeds of some 25 710 bags was received at thePorts Dock 9 unloading commenced on February 2 1974 and was concluded

by February 4 197412 Employees of the Federal Department of Agriculture inspected the seed

in transit shed 9 where it had been deposited on or about May 2 3 4 and 61974 and Lucidi received notice of the contamination found by them on

May 14 197413 The sesame seed was being held on the dock for instructions from Lucidi

because complainant did not have the facilities available at its Fresno plant to

process the seed at that time14 There are thirteen wharves at the Port and only seven of them have

transit sheds on them The Port also has long term storage facilities When thefree time expires for ingoing cargo the shipper has his choice of whether it willbe placed on wharf demurrage or wharf storage Itmay be transferredfrom thetransit shed into the warehouses where it comes under the regulations ofGeneral TariffNo 1

DISCUSSION

Complainant alleges that Item 85 of Stockton s Terminal Tariff No 4 isunlawfullv discriminatory against complainant as applied under the circum

Page 38: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

24 FEDERAL MARITIME COMMISSION

stances Complainant has not specifically alleged a violation of section 16First but the complaint in a shotgun allegation embraces several sections ofthe Act by contendingIs unlawful and invalid as violative of the Shipping Act of 1916 Title 46 V S C iIl814 817

The record contains nothing to indicate that respondent makes or gives anyundue or unreasonable preference or advantage to any particular person locality or description or traffic The record is also lacking any evidence to supporta finding that Item 85 of the Port s tariff subjects complainant to any undueor unreasonable prejudice or disadvantage To the contrary the record establishes that the Port invokes the exculpatory provision of Item 85 as to all users

of its facilities who suffer damage or loss from any of the causes set forththerein

The record is clearly without any evidence to support a finding ofa violationof section 16 First

Accordingly we now consider whether the regulation or practice establishedby Item 85 is unjust and unreasonable within the meaning of section 17Second Paragraph

The Commission in Investigation of Free Time Practices Port of SanDiego 9 F M C 525 547 1966 stated thatAs used in section 17 and as applied to terminal practices we think that just and reasonablepractice most appropriately means a practice otherwise lawful but notexcessive and which is fitand appropriate to the end in viewThe justness or reasonableness of a practice is not necessarily dependent upon the existence ofactual preference prejudice or discrimination It may causenoneofthese but still be unreasonable

Item 85 of Stockton s tariff proclaims that the Port will not be responsiblefor any injury to freight in or on its facilities resulting from various specifiedcauses

s

In addition to its Terminal Tariff No 4 Stockton also publishes a tariffentitled General TariffNo 1 a copy of which is on file with the CommissionSection 2 of that tariffestablishes warehouse rules and regulations Item 114 cof its General Tariff No I contains an exculpatory clause similar to Item 85of Terminal TariffNo 4 except for the following languageunless such loss or damage be caused by failure of the warehousemen to exercise the ordinary care

and diligence required of them by law

Exculpatory clauses in the water transportation industry appears to havebeen first considered by the U S Supreme Court in The Steamer Syracuse12 Wall 167 1870 where it was held that notwithstanding a contractualagreement that the canal boat was being towed at her own risk the towingboat must be visited with the consequences of its negligence 12 Wall at 171

The Supreme Court in United States v Atlantic Mutual Insurance Co etal 343 U S 236 1952 stated that there is a controlling rule of law thatwithout Congressional authority common carriers cannot stipulate againsttheir own negligence or that of their agents or servants

The Port ploadod thl provision 18 an affinnativedefense in acivil awon ordamagoa broupt by complainant which actionwubascd upon the aUcpd noalipncc of the Port

Page 39: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

I CHARLES LUCIDI V THE STOCKTON PORT DISTRICT 25

In Bisso v Inland Waterways Corporation 349 U S 85 1955 the Court

said

For many years The Syracuse seems to have been generally accepted as either 1 construing a

contract to tow at own risk as not including an exemption from negligence or 2 holding invalid

as against public policy a contract which exempts a tower from his negligence

349 U S at 86 and at pages 90 91

This rule is merely a particular application to the towage business of a general rule long used bycourts and legislatures to prevent enforcement of releasefrom negligence contracts in many

relationships such as bailors and bailees employers and employees public service companies and

their customers Footnote omitted

In 1959 the Supreme Court modified the long established general rule that

exculpatory clauses were invalid as a matter of law in a case where such a

clause was contained in a tariff which had been filed with the Interstate

Commerce Commission The question beforethe Court in Southwestern SugarMolasses Co Inc v River Terminals Corp 360 U S 411 1959 was

W hether consideration of public policy which may be called upon by courts to strike down

private contractual arrangements between tug and tow are necessarily applicable to provisions of

a tariff filed with and subject to the pervasive regulatory authority of an expert administrative

body

360 U S at 417

The Court distinguished Bisso by noting that the excu patory clause there

was part of a contract over which the ICC had no control The Court said

In these circumstances we would be moving too fast were we automatically to extend the rule of

Bisso to govern the present case For all we know it may be that the rate specified in the relevant

tariff is computed on the understanding that the exculpatory clause shall apply to relieve the

towboat owner of the expense of insuring itself against liability for damage caused tows by the

negligence of its servants and is a reasonable rate so computed If that were so it might be hard

to say that public policy demands that the towshould at oncehave the benefit of a rateso computedand be able to repudiate the correlative obligation of procuring its own insurance withknowledgethat the towboat may be required to respond in damages for any injury caused by its negligencedespite agreement to the contrary For so long as the towboat s rates are at all times subject to

regulatory control prospectively and by way of reparation the possibility of an overreachingwhereby the towboat is at once able to exacthigh rates and deny the liabilities which transportationat such rates might be found fairly to impose upon it can be aborted by the action of the LCe

The rule of Bisso however applicable where the towboat owner has the power to drive hard

bargains may well call for modification when that power is effectively controlled by apervasive

regulatory scheme Footnote omitted

360 US at 417 418

The Court concluded

We hold that the Court of Appeals correctly ruled that the exculpatory clause here at issue should

not be struck down as a matter of law and that the parties should be afforded a reasonable

opportunity to obtain from the Lee in an appropriate form of proceeding a determination as

to the particular circumstances of the tugboat industry which lend justification to this form of

clause if any there be or which militate toward a rule wholly invalidating such provisions

regardless of the fact that the carrier which seeks to invoke them is subject to prospective and

retrospective rate regulations Cases are notdecided nor the law appropriately understood apart

from an informed and particularized insight into the factual circumstanoes of the controversy

under litigation Federal Maritime Board v Isbrandsten Co 356 U S 481 498

Page 40: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

26 FEDERAL MARITIME COMMISSION

360 U S at 421

In 1966 the Commission addressed the issue of an exculpatory clause in thetariffof the New York Terminals Conference in Truck and Lighter Loadingand Unloading Practices at New York Harbor 9 F M C 505 The clause inthat tariff providedThe Terminal Operator assumes no responsibility for delay to motor vehicles and no claims forsuch delay will be honored

The Commission found at page 515

It is neither just nor reasonable for respondent to disclaim liability for all delays and their attemptto do so was invalid under section 17

The Commission did recognize that the terminal operatorsshould be allowedto disclaim liability for causes of delay beyond their control The Commissiondetermined that failure of the terminals to establish a rule to compensatetruckers for unusual delay caused by or under control of the terminals constitutes an unjust and unreasonable practice under section 17 ofthe Shipping ActThis order of the Commission was upheld by the Court of Appeals in American

Export Isbrandtsen Lines Inc v Federal Maritime Commission 389 F 2d962 D C Cir 1968

The Port in its brief points out that edible goods such as sesame seed if lefton the dock or put in a transit shed are very difficult to protect from rodentsand pigeons These transit sheds are just what the name implies goods are

coming from the ships and into the sheds and going out and goods are also

coming into the sheds for a short time before a ship docks to go out on Thismeans a cargo is being moved in and out by forklifts and trucks through thesheds during anytime that ships are docking for loading or unloading and thiskeeps the facility so open that pigeons can fly in This is not true of the

permanent warehouse facilities where the storage of goods is not on such a

temporary basis and can be controlled as to type of goods in this location andas to need for undisturbed area

6

To the extent that the nature of the cargo and the operation of the Ports

transit sheds is relevant to this proceeding it cannot be stated too strongly thatthis initial decision does not presume to pass on the question of whether or notthe Port was negligent with respect to the Lucidi cargo The issue of negligenceis to be resolved in the suit in the California court The issues to which theinitial decision relates are whether the Port may by tariff excuse itself fromliability even if negligent

It is noteworthy that the warehouse aspect of the Port s question is regulatedby a California statute which does not permit exculpatory agreements and

requires a warehouseman to comply with the standard of care set forth in theCalifornia Commercial Code i7204 1 reading as follows

57204 DUTY OF CARE CONTRACTUAL LIMITATION OF WAREHOUSEMAN SLIABILITY I A warehouseman is liable for damages for loss of or injury to the goods causedby his failure to exercise such care in regard to them as a reasonably careful man would exercise

R ply Briof oIth Stockton Port Dillrict pp 4 5

Page 41: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

I CHARLES LUCIDI V THE STOCKTON PORT DISTRICT 27

under like circumstances but unless otherwise agreed he is not liable fordamages which could not

have been avoided hy the exercise of such care

Slats 1963 c 819 i7204

The Port admits that under existing California Law Item 85 would not bevalid if the storage ofthe sesame seed had been removed to a warehouse ratherthan remaining in the transit shed on the wharf

The Port argues that there is a significant difference between the exposureto the Port for damage to cargo while on the wharf or in the transit sheds as

opposed to cargo placed in protected warehouses Therefore it contends thatthe duty of providing insurance for such cargo should beplaced on the shipperwho has control of its location if he does not choose to or cannot at the timeof unloading immediately move his cargo away from the Port area It is thePort s contention that if the shipper wants complete protection for the cargohe can take advantage ofCalifornia law holding warehousemen to the standardof care indicated by 7204 of the California Commercial Code

The arguments of the Port beg the question whether a tariff provisionexculpating the Port in the transit shed area from the standard of care similarto that imposed in the warehouse area is ajust and reasonable tariffprovisionAbsent such a tariff provision and assuming 7204 is not applicable to thetransit sheds then whether the Port should be liable for damage to the cargounder the factual circumstances as they exist at the Port is for the Californiacourt to determine

In support of the Port Los Angeles argues that absent Item 85 which

contemplates that each party bringing a particular cargo into the Port shallbear the responsibility for protecting that particular cargo against loss the Portmust recover costs of potential liability from the users of the Port either

through increased tariffs or other methods of raising revenue Increase in ratesmeans an increase in the cost of goods moving through Stockton Los Angelescontends this means that the general public will be paying for these costs ratherthan the shipper and his customers

Los Angeles asserts that it is reasonable that the method utilizedby the PortofStockton and also by the Port of Los Angeles whichprovides that the Portwill not be responsible for the loss of the cargo informs the shippers that if thereis going to be a loss even though that loss may becaused by the sole negligenceof the Port in order to protect themselves they should acquire their own

insurance This prevents the Port from having to spread the risks of the

particular cargo among if not all the users of tbe Port certainly all the users

of the Port that bring in that particular type of cargo Los Angeles also saysthat requiring each shipper to be responsible for its own cargo has the addedbenefit ofhaving the customer who uses thatcargo in its ultimate form pay theactual charges for that cargo rather thanhaving those charges paid for by other

general users of the PortIt is difficult to understand how the general public rather than the shipper

and his customers would be paying the costs of increased tariffs at the Port Inany event the cost ofprotecting cargo against loss whether borne by the Port

7 Reply Brief of the Stockton Port District p 4

Page 42: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

28 FEDERAL MARITIME COMMISSION

and passed on as a cost ofPort operation in the same manneror other costs ofPort operation are passed on or whether borne by the shipper the cost ofcargoprotection ultimately is paid by the consumer

In order to determine the legality of Item 85 of Stockton s tariff it isnecessary to ascertain whether the limitation or restriction of liability provisions ofa terminal tariff are rules or regulations relating to or connected withthe receiving handling storing and or delivering ofproperty within the mean

ing ofsection 17 of the Shipping Act and the Commission s General Order 15The purpose of General Order 15 is to enable the Commission to discharge

its responsibilities under section 17 by keeping informed of practices and ratesof terminal operators and by keeping the public informed 46 C F R S 5331Terminal operators clearly must include in tariffs all rates charges rules andregulations in connection with and or related to the receiving handling storing or delivering of property However whether a rate charge rule or regulation it must be just and reasonable

There is no evidence that the rates and charges contained in its tariff were

established on the understanding that they were related in any respect to theexculpatory provision of Item 85 The record here is to the contrary WalterMeryman the Port s Director of Marketing and Traffic testified as to theratemaking procedures of the Port 8 The Port is a member of the CaliforniaAssociation of Port Authorities CAPA CAPA s Committee on Tariffs andPractices meets usually every two months to discuss wharfage dockage andrelated port services The Ports NOS wharfage rate was increased each yearfrom 1974 to and including 1978 Mr Meryman the Port s representative onCAP A s Committee on Tariffs and Practices testified that these increaseswere

discussed by and agreed to by the CommitteeFollowing its usual procedure the Port adopted the rates as agreed to by the

Committee Further Mr Meryman testified that during the years he participated in CAPA rate discussions there was never a discussion of Stockton sTariff Item 85 or similar clauses in other port tariffs Accordingly the recordcontains nothing to support a finding that Tariff Item 85 could be justifiedunder the theory suggested by the Supreme Court in the Southwestern Sugar

Molasses Co supra

CONCLUSIONS

Respondent Port ofStockton a person subject to regulation by the ShippingAct 1916 among other things provides terminal services including terminalstorage and cargo handling

In the operation of its terminal the Port has published and filed a tariffrelating to its terminal services which is designated Terminal Tariff No 4Included in Terminal TariffNo 4 is Item No 85 which provides in essencethat the Port shall not be responsible for injury to freight on or in its facilitiesresulting from a variety of causes including injury caused by animals ratsmice other rodents moths weevils or other insects

I

Deposition or Walter H Mcryman Ex 4

Page 43: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

I CHARLES LUClDI V THE STOCKTON PORT DISTRICT 29

To the extent that the provisions of Item 85 would relieve the Port from

damage for liability to property caused in whole or in part by fault of the Port

and without a quid pro quo of any kind such provisions are unjust and

unreasonable in violation of section 17 of the Act

There is no evidence and the Port does not contend that Item 85 was

promulgated in consideration of any benefits otherwise conferred on users of

the PortThe provisions of Item 85 are against public policy insofar as such policy

requires businesses affected with a public interest be precluded from takingunfair advantage of those who by necessity must use the facilities of such

businesses To permit the Port to isolate itself from liability if such liabilityaccrued by reason of the Port s negligence by the mere publication of an ex

culpatory tariff provision is unjust and unreasonable in violation of section 17

of the ActItem 85 of Terminal TariffNo 4 is an unjust and unreasonable regulation

and practice relating to orconnected with the receiving handling storing or de

livering ofproperty in violation ofsection 17 Second Paragraph Shipping Act

1916Therefore respondent shall cease and desist from the aforementioned unjust

and unreasonable tariff provision by deleting Item 85 from Terminal Tariff

No 4 or in the alternative amend Item 85 as to clearly set forth that non

liability does not apply in the event that injury results from negligence by the

Port

S STANLEY M LEVYAdministrative Law Judge

WASHINGTON D C

June 4 1979

Page 44: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

I

1

FEDERAL MARITIME COMMISSION

DOCKET No 73 51

PERRY S CRANE SERVICE

Y

PORT OF HOUSTON AUTHORITY

OF THE PORT OF HOUSTON TEXAS

NOTICE

July 27 1979

Notice is given that the time within which the Commission could determineto review the June 21 1979 order of discontinuance of the Administrative Law

Judge in this proceeding has expired No such determination has been made

and accordingly that order has become administratively final

S FRANCIS C HURNEY

Secretary

1

mharris
Typewritten Text
30
Page 45: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

No 78 22

ICHARLES LUCIDI D B A LUCID PACKING COMPANY

v

THE STOCKTON PORT DISTRICT KILL PEST INCDELK TERMINEX PEST CONTROL TERMINEX

INTERNATIONAL INC COOK INDUSTRIES INC

Finalized July 7 1979

Respondent Port of Stockton is not in violation of section 16 First in that It does not give anyundue or unreasonable preference or advantage to any particular person locality or description of traffic

Respondent Port of Stockton is not in violation of section 16 First in that it des not subjectcomplainant to any undue or unreasonable prejudice or disadvantage

Respondent Port of Stockton is inviolation of section 17 in that Item 85 of Its Terminal TariffNo 4 constitutes an unjust or unreasonable regulation and practice related to or connectedwith receiving handling storing or delivering property

C Richard Wallers for complainant ICharles Lucidi d b a Lucidl Packing CompanyEdwin Mayall for respondent Stockton Port DistrictFrank Wagner for intervenor Port of Los Angeles CaliforniaJohn Robert Ewers Aaron W Reese and Bruce Love Hearing Counsel

INITIAL DECISION OF STANLEY M LEVYADMINISTRATIVE LAW JUDGE I

Charles Lucidi d b a Lucidi Packing Company Lucidi complainantherein filed a civil action in the Supreme Court of California against theStockton Port District Stockton or Port respondent herein seeking recoveryfor alleged damage to property of Lucidi while on the terminal facilities ofStockton Itwas alleged that 25 710 bags of sesame seeds became infested withrodent and bird droppings while being stored on Stockton s terminal facilities

I ThiJ decillan will become the decillan of tho Commiuion in tho abooof miow thof by tho Commilalon Rule 227 Rulof Practioe and Procoduro 46 CF R 1502227

mharris
Typewritten Text
31
Page 46: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

32 FEDERAL MARITIME COMMISSION

remanded the proceeding to the presiding officer to determine the amount of

reparation for monetary damages suffered by complainant In taking this latteraction the Commission recognized that complainant was entitled to some

degree of monetary restitution for losses occasioned by the unlawful practicesbut that the extent of reparation could not be determined on the record whichhad been developed FMC Decision p 5 1 The Commission instructed theparties to utilize the procedures set forth in Commission Rule 252 formerlyRule 15 b which required complainant to prepare a statement itemizingdamages which could form the basis for an award of reparation or for further

hearingFollowing the Commission s decision a number of events occurred which

impeded progress toward conclusion of this proceeding and resulted in considerable delay which was not the fault of either complainant and respondent Inbrief although respondent cooperated in an effort to bring the question ofreparation to a prompt conclusion complainant s first counsel was unable to

conduct the necessary investigation of facts in a timely fashion and as Imentioned above even disappeared for a time Furthermore three other similarcomplaints were filed 2

Finally after it appeared that complainanfs first coun

sel was not able to develop the necessary information upon which settlementdiscussions could be based despite numerous conferences rulings meetingsand the like complainants in all four cases retained new counsel This wasdonesometime in April or May of 1978 Thereafter with new counsel steps were

taken to enable the parties to develop relevant evidence and to commence

negotiations leading toward settlement See Report ofSpecial Conference andRulings Made Therein May 30 1978 The process ofdeveloping this evidencewas time consuming and involved among other things checking of Portrecords and other records to determine bumping instances over a period oftime extending from November 17 1973 to March 23 1977 Counsel s workwas made more difficult because of the uncertain measure of damages in cases

of this type and the extreme difficulty in determining instances when com

plainant had not obtained jobs because of the Port s first call preferentialpractice Nevertheless after records had been checked negotiations seekingsettlement resumed finally reaching a successful conclusion which has culminated in the filing of the subject motion

THE SElTLEMENT AND REASONS SUPPORTING ITS APPROVAL

As the motion states after all of the effort described above in which the

parties checked and cross checked records seeking to determine instances of

I Both the Commissionand I wished to puraue the qUClItion of reparation although complainant had failed to furnish reliableand probative cvidenC at the hearing on this qUOItion dClpite having had several opportunitioaat tho hoaring to do 10 HOWGVOr1furnishing proof ofactual componaable damapl is Rot eay in this type of and asJ ocsmo apparent late part of tho problemwhich complainant faced stemmed from the activities of hi fint COURsol who actually seem to havc disappeared fora period of

time duringthe remanded phaae of the proceedlnFor adescription of the problems in provinlflnanciallnjury whic1l complainantexperienced at the hcarinl seemy InithdOecilion cited above 16 SRR at 1487 1490

1 These were Docket No 76 57 H HCranes Inc v Pori ojHoUlton Authority 19 SRR 47 1979 Docket No 77 41Houston Gulf Crane Inc IIaI v Port of Howton Authority and Docket No 77 42 P lI M CraneS rvICf Inc v Pon ofHouston Authority 19 SRR 997 1979 Docket No 77 41 has been terminated by the withdrawal of the complaint Docket No76 57 isallO nearinl submiSllion of a settlement Docket No 77 42 has not been sottled and is proceedlnl toward hearinB

Page 47: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PERRY S CRANE SERVICE V PORT OF HOUSTON AUTHORITY 33

bumping the parties exchanged proposals for settlement As noted it was

recognized that even ifspecific instances of bumping could be verified to the

satisfaction of both parties an enormously difficult problem remained if the

parties were to determine those instances in which complainant never obtained

jobs because a particular Port crane had secured the job through the Ports

former preferential first call practices Under the Commission s decision com

plainant was entitled to monetary restitution for injury caused by bumpingfrom jobs actually commenced but also from jobs never obtained because the

Port had required a stevedore to utilize a Port crane not equally suitable to one

of complainants Even if all of these facts could be determined easily and a

causal relationship established between the Port s practices and idleness of

complainants cranes the question of items of damages to be considered com

pensable under section 22 of the Act remained to be arguedIn view of all of these difficulties of proof and expenses of continued liti

gation the parties determined that further costs of litigation would outweighany benefits that either party could derive from efforts to identify and prove

monetary damages more precisely Accordingly both parties desire to compromise and settlecomplainant s claim by agreeing upon the amount of 9 72741

to be paid by respondent together with costs of the proceedings ifany as have

been assessed By this means the parties seek to bring this lengthy and exasper

ating litigation to an amicable close To that I say amen Itonly remains for

me to determine under applicable principles of law whether there is any reason

why this compromise and settlement should not be approved and why this old

case should not be laid to rest I find no such reasons as I now explain

GOVERNING PRINCIPLES OF LAW

Ithas long been recognized by the Commission that the law strongly favors

settlements and that settlements will be treated with indulgence and with

presumptions that they are correct and fair Organic Chemicals v AtlanttrafikExpress Service 18 SRR 1536a 1539 1979 and cases cited therein There

are a few caveats which must be considered however As the Commission has

stated notwithstanding the strong policy favoring settlements a presidingjudge should not act as a rubber stamp and should be especially careful to

ensure that the settlement does no violence to any statutory scheme In a recent

order in Docket No 78 44 Pierpoint Management Company and Retia

Steamship Company v Holt Hauling and Warehousing Systems Inc

19 SRR 435 June 13 1979 the Commission stated as follows

The Commission is awareof and fully supports the policy which favors the settlement of disputesbut it is incumbent upon the decision maker to assure that the settlement proposed by litigants does

not violate the law As was stated in Inter Equip Inc v Hugo Zanei Co 17 SRR 1232 at

1234I977

The fact that parties seek approval of their settlement does not mean that the presidingofficer or the Commission must blindly approve and has no useful function to perform Care

must be taken to insure that no violence is done to any statutory schemes involved especiallyif there is a question concerning the applicability of Section 15 of the Act

The statutory scheme to which the Commission had reference in Pierpointinvolved a possible agreement that required filing and formal approval under

Page 48: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

34 FEDERAL MARITIME COMMISSION

section 15 of the Act i e a certain type of anticompetitive agreement amongcarriers or other persons subject to the Act In such cases settlements may be

approved but they are subject to formal Commission processing undersection 15 See Pierpoint supra Massachusetts Port Authority v ContainerMarine Lines 11 SRR 37 40 1969 American Export Isbrandtsen LinesInc 14 F M C 82 89 1970 Another statutory scheme which requiresspecial attention when settlements are submitted involves section18 b 3 ofthe Act While permitting compromise and settlement in complaint cases

alleging that carriers have overcharged in violation ofthat law where the facts

are not readily ascertainable the Commission has been careful to ensure thatthe settlement is a bona fide effort to terminate a controversy and not a deviceto circumvent the strict requirements of tariff law See Organic Checmicals v

Atlanttrafik Express Service supra 18 SRR at 1539 40The present case does not involve the complications which occurred in

connection with the section 15 and section l8 b 3 cases described This case

involves simply a compromise and settlement in which the problem presentedwas to fashion a reasonable measure of monetary damages arising out of

discontinued practices which had been found to be unduly prejudicial andunreasonable within the meaning of sections 16 First and 17 ofthe Act Thereis no concern that the settlement itself which is not between two carriers or

other persons subject to the Act and which does not establish ongoing anti

competitive conditions need undergo section 15 processing Moreover there is

no tariff policy which comes into play under section l8 b 3 The case maytherefore be evaluated under general principles favoring compromise and set

tlement in which a major consideration is the factthat the parties after lengthynegotiations have determined that whatever they could have achieved to vin

dicate their respective positions by means of continued litigation would be

outweighed by the costs of such litigation and that the amount of settlementto which both have agreed represents a satisfactory compromise and succeedsin terminating a seemingly interminable proceeding

3

Considering furthermorethe extreme difficulty of identifying every bumping instance and every lostjob attributable to the Port over a period of more than three years as well as

establishing a formula by which each compensable item of damages could beidentified the merits of entering into a compromise and settlement becomemore obvious This case therefore falls into the customary pattern of thetypical settlement which the law encourages in order to terminate complicatedcontroversies and avoid wasteful litigation See e g Old Ben Coal Companyv Sea Land Service Inc 18 SRR 1085 1091 1099 ID 1978 F MCadoption December 29 1978 for a full discussion of these principles andrelevant case citations

I In fOIpoct 10 tho particular amount 0dam pI uponwhich the partiel have aareed the Commlllion hasrecopized that this

it matter for the part1el to datonnine ln Equlp lnc l HUfO ZQMIIt cI Co 8UpNl 17 SRR 1232 at 1234 1971 it was

aled

Tho amount of the lettlclmont is a matter ror the pard to detormint and the Commiuion baa in tho palt MCQInized the

tradition Sco Lnatlno SOIII lne v Pnld tlll G LIM Inc 12 SRR 1079 1100 1102ID atftrmod in pertinent portionby the Commllllon 14 SRR 1301 1974

Page 49: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PERRY S CRANE SERVICE V PORT OF HOUSTON AUTHORITY 35

CONCLUSION

On the basis of relevant principles of law governing compromises and set

tlements and considering the nature of the settlement entered into by the

parties to this proceeding Ifind as in Old Ben supra that the settlement

agreement which the parties have submitted for approval as a means to termi

nate this case is reasonable violates no law or policy and fully comports with

the Commission s policy which strongly encourages settlements Therefore

subject to Rule 227 c as amended 4 the settlement is approved and this

complaint case is discontinued

S NORMAN D KLINEAdministrative Law Judge

June 21 1979

Rule 227 c as amended states as follows

Whenever an administrative law judge orders dismissal of a proceeding in whole or in part such order in the absence of appealshall become the ordcr ofthe Commission 30 days after date ofservice of such order and the Secretary shall sonotify the partiesunless within such 3oday periexl the Commission decides to review such order on its own motion in which case notice of suchintention shall be served upon the parties 46 C FR 5502 227 c General Order 16 Arndt 26 served October 25 1978

Page 50: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

DOCKET No 79 7

PUERTO RICO MARITIME SHIPPING AUTHORITY

v

SEATRAIN GITMO INC ANDTRAILER MARINE TRANSPORT CORPORATION

NOTICE

July 27 1979

Notice is given that the time within which the Commission could determineto review the June 22 1979 order of discontinuance of the Administrative Law

Judge in this proceeding has expired No such determination has been madeand accordingly that order has become administratively final

S FRANCIS C HURNEY

Secretary

mharris
Typewritten Text
mharris
Typewritten Text
36
Page 51: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

LE WIll

Plnollllql 1111 JO lldpuJd AUll JOU lUlUJ IIJ2111 JllJllq plJ dxI AIlUlJllddll Ull

JO Snl1llS lql 2lU UJIlUOO UOlllil lI lnuluoo Ol YSYilMd IOOUJOO Ol lUJ IZJoqlnllPlnollllql 1111 JO lUJl lOP ou JO IoIDJ I l 2luln llSoJd U lU od OU SIIS l J

l IllJpql IOl AlIllJlU l21 pUll lU llldUJoo 11 lIY ollq21p 11 Sllq lUllU llldUJoo Y

llllllJpqlI 2lupunouull Jlll l1 lql Ol pIIdlJ Sllq AlJlld JlqlO oN lJnlnJ lql

U SlUlUJ l21UllJJll JllJllq JlllUI S OlU JllU I sI ulldUJoo pllllJ lJ JO SlUlpuods lJ J

lU llldUJoo IlU 11 JO 2luIY lql Ol Il pnflJd lnoqlI S IlllllJpql ISl l1lql PUlllS

Jlpun Plnoqs SI lJlld 1111 l1lql JI lIoq SlJlSSll YSYilMd plI lUlJ 11 Plnoll

l1lql UO llllOOX IOU SliM lJlqllllql pUll 6L61 0 AllYillnoqll JO uo lJ dxI PlnolUO lSlnb U JllJllq lql luql LYilL JOJ Ilsunoo JO SUO llllUlS lJdlJ JO S Sllq lql

uo lU llldUJoo Sl IllJpql I Ol plPp lP pllq YSYilMd lllql Jlll l1 Aq lUJ plS Pll

YSYilMd JOJ Ilsunoo 6L61 Of AllYil uO 6L61 I AllYil lulUJ lIlllS lJq SSOd 2lU

pJll21lM lJodlM snllllS qS uJnIOl JlpJO IIS SUO SSnlS P lslql JO Snl1llS lql JO

lUJ lS Pll Ol lUllUllldUJoo pll nJlSU IpIlU lUJUJoo pllq suo ssns p lUlUJ lIllls

l1lql pIS Pll LYilL lUlpuods lJ JOJ Ilsunoo 6L61 f IJdy pll1lP Jlll l1 ASlUlUJ IlJ2111 1 UO PlS 11 llnmSUO

lOU P P lUlUJ l21ullJJll JllJllq lql lllql pllJ lSSll pUll suolll21 lIl11 lql pIU

lP AlIllJlu liI SlUlpuods IM UO lllJlldlJ pUll JlpJO lS SlP pUll lSlll 11 lqllnosYSYilMd oUJl D U llJllllS Ol AUlldUJouOllllJodsUllJ L 1fl llu I oL AlII OJ

Sll UIoIDJ AUlldUJoo 11 UJOJJ l21Jllq 11 JO JllJllq 11 JO llnslJ 11 Sll lUlUJ IIJ2111

I l lOOUJOOlUll Ull lno 2lU AJJllpUll OlU 2luJ llUI Aq 9161 PY llu dd qS

lql JO 1 uOlllS pllllIO pllq LYilL AUlldUJOJ lJodSUllJL lUpllYil Jll llJL

pUll UI OUJl D U llJllllS SlUlpuodS lJ l1lql plll llIll YSYilMd AlJoqlny2lu dd qS lUJ lPllYil OO M OlJlnd lql 6L61 AJllnJqlIplAJ lS lU llldUJoo AS

6L6l il fln pJzltJUJd

DNIG33OMd IO 3 NYflNILNO SIG ONY

LNIY dYilOIO YM YMOH LIM IO 3ILON

NOI1VlIO nlOl 1I0dSNVlIL 3NIlIVYil1l31IVlILONV NI OWlID NIVlIlV3S

AlHIOHlf1Y DNlddIHS 3WIlllIVYil OJIM onl3f1d

L 6L ON

NOISSIWWOHWILIaVW lW3G iH

Page 52: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

38 FEDERAL MARITIME COMMISSION

prevent PRM8A from filing a new complaint should a similar charter be

executed in the future

Accordingly in view of complainant s decision to withdraw its complaintthis proceeding is discontinued

8 NORMAN D KLINE

Administrative Law Judge

June 22 1979

I1

Page 53: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

DOCKET No 77 27

TRAILER MARINE TRANSPORT CORPORATION

GENERAL INCREASE IN RATES

DOCKET No 77 28

GULF CARIBBEAN MARINE LINES INC

GENERAL INCREASE IN RATES

ORDER ADOPTING INITIAL DECISION ON REMAND

July 31 1979

On December 19 1978 the Commission remanded this proceeding to the

Office of Administrative Law Judges for further hearings after determiningthat TMTs rate increases in Docket No 77 27 could not be found to be rea

sonable without some inquiry into TMTs debt equity structure and the effect

of its through movement rates on its port toport rates This proceeding is now

before the Commission upon its determination to review the Initial Decision on

Remand issued in this proceeding on April 18 1979 by Administrative Law

Judge Thomas W ReillyOn remand the Presiding Officer found that the record was sufficient to

allow a final determination as to the reasonableness of the subject rate in

creases in conformity with directives of the Commission Although he found

the rates to be reasonable sufficient evidence of such reasonableness was putinto the record only as a result of the salutary efforts of the Commission s

Bureau ofHearing Counsel In contrast the Presiding Officer specifically noted

that TMT had flatly refused to provide the information required by the Com

mission as part of a deliberate calculated strategyAlthough the United States Court of Appeals for the District of Columbia

has found that the Commission does not have jurisdiction over joint throughrail waterrates to and from Puerto Rico the right of the Commission to obtain

any and all information concerning the operations of regulated carriers reason

ably necessary to carry out its regulatory functions wasupheld TrailerMarine

Transportation Corporation v Federal Maritime Commission 602 F 2d 379

mharris
Typewritten Text
39
Page 54: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

40 FEDERAL MARITIME COMMISSION

D C Cir 1979 In light of this decision the Presiding Officer s warning thatit is a perilous course for a regulated carrier to refuse to divulge the requested

information is completely supported by the Commission Had an adequaterecord for determination of the reasonableness of these rate increases not been

developed through the efforts of Hearing Counsel they could well have been

held to be unlawful due to the failure of TMT to sustain its burden of proofin this regard See Commonwealth ofPuerto Rico v Federal Maritime Com

mission 468 F 2d 872 D C Cir 1972

Because sufficient evidence supporting the ultimate disposition ofthis case as

recommended by the Presiding Officer is contained in the record his decisionwill not be disturbed In the future any carrier s refusal to comply withCommission orders may cause adverse inferences to be drawn or result in the

imposition of appropriate legal sanctionsTHEREFORE IT IS ORDERED That the Initial Decision issued in this

proceeding is adopted andIT IS FURTHER ORDERED That this proceeding be discontinued

By the Commission

S FRANCIS C HURNEY

Secretary

Page 55: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

Iv fIL l

aclOS 5 lIO 9t lJnpnud pUB ptud 0

nf az llnll UO SS WWoqlq JX Jillfl M O UOlSqB llflU UO SS WWO1111 JO UO SOQp J1p wOOQj IJ UO PS qL I

UO S O 11llUI l1lq1 01 suold llx l pl1J AlJlld OU qllnoq1lV lnUlA ll11lUO 1 PPlllOj pllu llllUll lll1 11 UO plSllq llu lq Sll lNllUOSllll pUll lsnf lllM SlSll ll0U

l11ll lpq1 l1lq1 llu AOld jO ulpmq l lq1 plU 1l1SnS pllq SlUlpuods lll lq1 11lq1lSUlSS l U punoj UO S O 11lluI lIU LL61 6Z lSnllnv uo lAl lJl lUlllOlq

AlIlln1UlA l UO SS U1U10lq1 Aq plpuOO sns AlIll l U SlSll ll0U lql ll LI8S fl 9P 9161 lOV llu dd qS lq1 jO 11 81 llpUn lNllUOSllll pU1l1snf llllSlUlpuods lll q10q Aq pl1J SlSll ll0U lllll P OI 11lolU lP llq1 lqM lU UIll1 lP

01 LL61 OE lunf UO pl1n1 lSU AlIllull lO SllM llupllQld pll1lP losuoo S qlllnplqos

plllll lIlOOll UllllpUn plpnpuoo sllUpllQld 11lUOl Ppllllljll plAl lS lqpl1 l PUO SS U1U10lq1 qO qM PUllUllll uO UO S O 11lluI lq1 S S q1 IdO uOlll11

lSlAUI llqlJnd jO llplO 8L61 6IllqUl O S UO SS U1U10lq1 OllUllnsmd

NOUflQO LNI

300m MVl3AI lVlIlSINIWOVAllI311 M SVWOHldO jNOISIJ30 lVIlINI lVlN3W3 lddflS

9161 PVllu dd lS Ol l JO U 81 i JO llu uuow Ol l U lI M olquuOSllOJ puu lsnf OJU LL61 6 lsnllnv uo

pODo OIU lUOM lUl1 SOIUJ MOU Ol IIUllllllAOJd JO uopmq J Ol IIOOW 01 OOUOP AO llUO I PPUlUOllIns poonpoJd OAUl 01 PUDOJ OJOM llu poOlOJd POlUPlosuoo popUUWOJ l1 U SIUOpuodsoJ 0lJL

6L6l lE Aln pindopv

S3 Vll NI 3SV3KlNI lV 3N30NI S3NIl3NIWW NV31181 V nflO

8Z LL ON

a LL ON

S3 Vll NI 3SV3 JNI lV 3N30NOUV onIO OdSN l 3NI VW 3lIV l

NOISSlWWOtlWUHIVW lW3Utld

Page 56: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

42 FEDERAL MARITIME COMMISSION

served June 27 1978 the Commission reviewed sua sponte and concludedthat a finding of reasonableness could not be made on the thenexisting recordBecause Trailer Marine Transport Corporation Inc TMT began offeringthrough movement service during the test period involved in the original pro

ceeding as evidenced by tariffs on file with theIC C ofwhich the Commissiontook official notice but failed to mention this in its direct case the Commissionremanded for consideration of the relationship between TMTs through move

ments and its port toport serviceThe second area remanded for further investigation was the methodology

used to determine the reasonableness ofTMT s and GCML s GulfCaribbeanMarine Lines Inc new rates The Commission stated in its OFI that Themethod used to determine whether the proposed rates of both TMT andGCML are reasonable also appears to be incomplete No rate of return was

computed on the equity portion of the rate base ofeither carrier Only the rates

of return on total capital were used in arriving at theconclusion that the returns

were not unreasonable in comparison with other U S businesses

After the issuance of the Commission s OFI the remanded proceedingsformally commenced with a Prehearing Conference in Washington D C on

January 9 1979 at which uchedule was worked out later slightly revisedThe parties ultimately agreed that no oral hearing would be necessary consistent with the Commission s directions in this regard The official record for

decision in this remanded proceeding consists of the following 2

1 Respondent s Direct Case filed January 30 1979

2 Hearing Counsels Interrogatories to Respondents January 12 1979

3 Respondent s Replies to Hearing Counsels Interrogatories January 30

19794 Depositions ofWilliamF Roush Craig A Wallace Donald C O Malley

February 1 19795 Testimony of Robert A Ellsworth February 16 1979

6 Affidavit of Robert A Ellsworth March 14 1979

The first five of the foregoing documents were submitted by Hearing Counselon March 2 1979 in connection with a Motion To Admit Evidence which

motion is hereby granted There was no opposition or reply to the motion byany other party The sixth was separately submitted on Much 14 1979 alsowith no opposition and likewise it is admitted in evidence In addition to the

evidence the parties filed the following briefs

a Respondent s Opening Brief March 2 1979

b Hearing Counsel s Opening Brief March 9 1979

c Respondents Reply Brief March 16 1979

d Hearing Counsel s letter of March 19 1979 disclaiming need for reply

I PropooocI toItimoRY of Thomu L Farmtr daltd Fob 16 1979 wu IRitlally ubmltltd by Hoonna ColmIoi and laterwithdrawn by explanatory Iottor ofMarch 9 1979 topthor with an aftldavit from Mr FanneroutllnlnJ tho ciraunlltanCGI ortho

withdrawal of his IoItimony It mould be Raced that Mr Farmer atao ubmitted earlier tcItimony In the 8m pbuc of this

procecdinl January 1978 but I do not detm the IUblequont eventl to have impairwd in any way tho validity of bit earliertatimonv

Page 57: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

GENERAL INCREASE IN RATES 43

DISCUSSION

IThe Effect OfTMTs Through Movement Rates On Its Port toPort Rates

The Commission in its OFI questioned TMTs allocation of 100 of its rate

base and expenses to port to port cargo in its G O II submissions which

comprised TMT s direct case in the original proceeding TMT began offeringthrough movement service during the test period but did not mention this fact

in its direct case3 making no mention of any other cargo being carried on its

vessels nor offering any explanation why portions of its rate base and expensesshould not be allocated to the through movement cargo Thus the Commission

concluded that A finding that the all water rates are reasonable cannot be

made without reliable information as to the effect ofTMTs through movement

rates on its port toport rates OFI 2 3 GCML does not participate in any

through movement rates thus only TMT is concerned with this portion of the

Commission s OFI4

Hearing Counsels proposed witness Thomas L Farmer made an on site re

view of the Respondents work papers at the corporate offices of the parentcorporation Crowley MaritimeCorporation Crowley in San Francisco how

ever Mr Farmer s testimony has been withdrawn supra fn 2 so that his

testimony cannot and will not be relied upon or used in any way in thisdecision

In addressing this first issue the Respondents refused to supply any specificcommodity data or through rate division data ocean portion etc either on

their own as part of their direct case or support therefor or in response to

Hearing Counsel s Interrogatories This was a part ofthe Respondents deliber

ate calculated strategy first explicitly announced at the January 9 1979 Pre

hearing Conference 5 despite their acknowledgement that they had the burden

of proof in this proceeding The Commission expressly stated on pages 2

and 3 of the OFI that The rate divisions of the through rate received by the

ocean carrier are relevant to a determination as to the reasonableness of TMT s

all water rates and Initially there must be an examination of the

comparative levels of the water division of the through rate of the port toportrate In view of those statements it is a perilous course for a regulated carrier

l Responding to the Commission s OFf criticism for ignoring TMTs through movement cargo in its original direct case

Respondents now assert that it did not segregate revenues in the test year because at that time TMT did not know when oreven

if it would get a joint rail water tariff adopted for filing at FMCorICe and even if it did Respondents believed that the initial

benefits of the tariffwould be minimal for at least a year until it gained general acceptance and use Resp Dir Case at 3 TMT

further asserts that historical facts now prove that the omission was meaningless because the amount of revenue derived from

through movement cargo does not meet the criteria of Part SI2 6 c

4 Both in response to an Interrogatory of Hearing Counsel and in their Direct Case Respondents state that GCML does not

offer through service

S See page 3 fn 2 of Hearing Counsel s Opening Brief also statements of Mr Roush at Prehearing Conference tr4 and 6

lilt isour position that we wiD show that the through rated traffic represents a very small portion of the traffic in total

which represents so small aportion that the regulations do not provide that we have to segregate that portion of traffic tr4

wJe will not reveal any data that would give the Commission any insight as to what the ocean divisions are on the throughrates tr 6

See also TMTs argument on pages 2 4 ofRespondents Direct Case as to why the Commission does not need nor its Regulationsrequire the production of such further data Also see Respondents refusal to answer Hearing Counsels Interrogatory 6 usingassertion This information isnot necessary to prove reasonableness ofrespondents rates Cf OFI at page 3 last full sentence

and fn 3

Page 58: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

44 FEDERAL MARITIME COMMISSION

to refuse to divulge the requested information As pointed out in my Janu

ary 22 1979 Ruling On Motion For Clarification the fact that data requestedby a regulatory agency deals with partly regulated and partly unregulated ac

tivity is no valid objection to that agency s request for such data 6 Respondent s

reliance on whatthe Commission ordinarily requires in carrier s regular reportsunder Part 512 of the Commission s Regulations 46 C F R 5512 is equallyinappropriate having no relevance to what the Commission may require in a

general rate increase proceeding7

Nevertheless Hearing Counsel did not pursue the issue of adamant refusalto turn over data in the form requested by Hearing CounselS and suggested bythe Commission in its OFI Hearing Counsel now joins with Respondents in

asserting that the material supplied should be sufficient for the Commission to

reach a decision in this limited remand proceeding Respondents point out in

their Direct Case that while Part 512 is not directly applicable here it doesconstitute an indication that revenues from other sources which comprise lessthan 5 of the revenues from the service over which the Commission has jurisdiction are not considered significant by the Commission with respect to

requiring regular financial reports for such service Resp Dir Case at 2 3

Specifically Respondents point to 46 C P R 5 512 6 c as clearly dealing with

only gross revenue when referring to revenue from other cargo and makethe argument that the most that is required by Part 512 is to segregate

revenue and expenses within the Service only if the gross revenue ofothercargo exceeds 5 ofthe gross revenue from the Service TMT in the

test year had port toport revenues of 53 332 000 compared to throughmovement revenue of 1 647 000 Thus TMTs other cargo produced only30of the gross revenue of the servie and therefore Respondents arguethere is no substantial reason to require a segregation of revenue and expensesfor such a relatively insignificant amount of other cargo Respondents fur

ther showed using August 1978 as an example that through movement cargoproduced more revenue than expenses and thus could not be a burden on

port toport traffic 9

Hearing Counsel tested Respondent s conclusions through Interrogatoriesrequests for production of documents and oral depositions of three companyofficials Based on this investigation Hearing Counsel concluded that they have

no basis to argue that TMTs through movement service places any financialburden on its all water service The answers of Respondents officials to deposition questions on transcript pages 29 3810 add specific details of the natureof the through movements how billings are recorded and determined and

Seo Ice Goodrl h Troru Co 124 u s 194 ZII 11 16 1911 cited and rpted al pase 3 01 the above January 22 RuUna see allo dilcuuion on pa 2 6 of limo RuUna

1 See 110 Hoarina CouRlIel remarkl on 00 II appUcabUity and adamanee of Relpondentl in refu ins to produce data

opauificd by 1ha CommlJIIon Prohcarina Conleren1l8ll1lCript 6 7

See f 2 at 3 of Hearina CoUll101 Openlq Brief

Reapondcnta 01 CalC aI410 AU 3 depolitionl arc bound topther under cover titled Deposition of William F Roulh

Page 59: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

GENERAL INCREASE IN RATES 45

where the figures that Respondents used in their Direct Case originated liOn

pages 8 9 Mr Roush explained the source for and calculations made in

determining the revenue produced for the through movement

II The Method Used To Determine Reasonableness Of Rates

In the Commission s OFI the Commission found that the parties use of rate

of return on total capital to determine reasonableness of rates was incom

plete As stated by the Commission

No rate of return was computed on the equity portion of the rate base of either carrier Only therates of return on total capital were used in arriving at the conclusion that the returns were not

unreasonable in comparison with other U S businesses The rate of return on equity was not

determined because the respondents complex corporate structure made this impossible

llf such a critical analysis can be avoided by carriers which happen to have a complex corporatestructure there exists the possibility that important aspects of their financial structure regardingthe effect of debt management on profitability may go unexamined When the financing structure

of a subsidiary is unusually complex an acceptable alternative may be the use of the debtequity

ratio and imbedded debt rate of the parent corporation in calculating the respective rates of return

OFI at 4 5

Once again as in responding to the first remanded issue the Respondentsdeclined to present the Commission with the analysis it requested arguinginstead that they should not be required to make such analysis This argumentis repeated in Respondents Direct Case at 5 8 Respondents argue that onlythe G O II accounting methodology should be employed in determining the

rate of return unless the application of such rules and regulations create

unreasonable results citing 46 C F R 512 3 g Y Respondents cite the

decision in Sea Land Service Inc Gen Increase in Rates etc Docket

71 53 13 SRR 907 921 1973 as supporting their positionY However I

find nothing in that decision that in any way constricts or limits the Commis

sion in its discretion to choose the most appropriate accounting methodologyfor use in a particular rate proceeding

Even though the Respondents did not present debt and equity data in their

Direct Case Hearing Counsel points out that they did provide sufficient infor

mation to the staff expert witness Dr Robert Ellsworth of the FMC Bureau

of Industry Economics so that he could make the analysis required by the

II In its Di Case ResXlndents testify that through movement cargo cannot burden its all water cargo because tbe revenue

produced from the through ratc division exceeds the related fully distributed expenses For the most current 12 month periodavailable to TMT through Nov 30 1918 lotal expenses were 39 814099 During this same period TMT bandied 37 500

forty foot trailers That resulted in average expense per trailcrof 1 061 71 Using the August 1978 example the month chosen

by Hearing Counsel in its Request for Documents the revenue from the 347 through movement trailers was 405 615 an

average revenue of 1 168 91 per trailer Thus the through movement cargo produced a margin overexpenses of 107 20 per

forty foot trailer ergo no expense burden on the port toport traffic Resp Dir Case at 4 5

tl Respondents further contend that no unreasonable results occur by using G O 11 accounting methodology Respondentsshould not be subject to the uncertainty ofsubmitting a financial report based on GO II requirements and having it judged byanother accounting methodology The mathematical exercises sought to be engaged in by the Commission serve little practicalpurpose as GO I makes provision for the inclusion in the rate base of the cost less depreciation of the assets used in the trade

Res Oir Case at 6

I That decision though cited asa statementofthe Commission in Respondent s Oirect Case wasactually a decision ofAdmin

istrative Law Judge Herbert K Greer in a proceeding that was ultimately discontinued by the Commission on March 18 1975

because twoother proceedings were expected todeal with key issues from the Docket 71 53 proceeding See 14 SRR 1569 1975

Page 60: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

46 FEDERAL MARITIME COMMISSION

Commission His analysis is set forth in his testimonyl4 and is directed to thefollowing areas a rates of return on equity b fair maximum rates of

return on equity c debt and equity ratios and d tax savings arising frominterest payments as a deductible expense Again as in the original proceedingthe ultimate conclusion as to reasonableness of the new rates is based upon a

comparison with average rates of return for U S corporations including a

comparison with transportation industries as well as in all industries and alsoincludes consideration of risk factors for TMT and GCML

Dr Ellsworth disagrees with the Respondent s argument that the Commis

sion should utilize the samehypothetical debt and equity ratio concept that theCAB uses but beyond that his analysis leads him to conclude that the generalrate increases of TMT and GCML are reasonable when viewed in the light ofthe carriers rates of return

Dr Ellsworth s analysis established embedded debt costs 8 32 TMT8 57 GCML and then following the Commission s suggestion used the debt

and equity structure ofthe parent corporation Crowley MaritimeCorporationor CMC as an indicator of the debt and equity structures for TMT andGCML From this the analysis proceeds to calculate rates of return on equityAfter including the post tax effect of the revenue TMT earned from its jointrail water service TMT yields a rate of return on equity of 12 34 and a

10 04 return on rate base Dr Ellsworth calculates that GCML should haverealized a negative return on equity of 2 61 and a positive 3 75 return on

rate base The negative return on equity results from the cost of meeting theimbedded debt being greater than the net income before interest

Dr Ellsworth then determined what the maximum fair rate of return wouldbe for the Respondents Before arriving at that conclusion he first detailsseveral factors he considered Ellsworth 8 16 Dr Ellsworth calculates thatTMT andGCML would be entitled to a maximum fair rate of return of 15

Therefore based on the documentation submitted and his analysis thereof heconcludes that the Respondents new rates reftecting the new general rateincreases are just and reasonable

CONCLUSION

I find that based upon the additional evidence submitted in this remandedproceeding including staff analysis thereof the Respondents new rates incorporating their new general rate increases are just and reasonable within the

meaning of 8l8 a of the Shipping Act 1916 46 U S C 8817 a

S THOMAS W REILLY

Administrative Law JudgeWASHINOTON D C

April 17 1979

14 See allo explanatoryaffldavit of Dr EllIworth dated March 14 1979

Page 61: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

SPECIAL DoCKET No 606

APPLICATION OF SEA LAND SERVICE INC FORTHE BENEFIT OF NEPERA CHEMICAL INC

REPORT AND ORDER ADOPTING INITIAL DECISION

August 8 1979

BY THE COMMISSION RichardJ Daschbach Chairman ThomasF Moakley Vice Chairman James V

Day and Leslie Kanuk Commissioners

Sea Land Service Inc filed an application pursuant to section 18 b 3 ofthe Shipping Act 1916 46 U S c 817 requesting permission to waive42 569 90 and refund 280 00 in freight charges to Nepera Chemical Inc in

order to give effect to a rate negotiated between the parties but not filed in the

appropriate tariff prior to shipmentAdministrative Law Judge Norman D Kline rendered an Initial Decision

denying the application on the ground that Sea Land had failed to file a

corrected tariff rate which conformed to the negotiated rate Judge Kline basedhis decision upon the Commission s holding in Munoz v Cabrero v Sea LandService Inc 17 S R R 1191 1977 that secton 18 b 3 absolutely requiresthe carrier prior to applying for refund or waiver authority to file a new tariff

reflecting the intended tariffupon which a refund orwaiver is to be based Herehe found that the new tariff filed by Sea Landwill result in a charge to Neperaof 18 25 per container more than the negotiated rate

Sea Land filed Exceptions to the Initial Decision arguing that the differencebetween the negotiated rate and the rate filed must be regarded as de minimisand therefore not a jurisdictional defect Sea Land s Exceptions admit thatthere is a variance between the negotiated rate and the rate filed but argue thatit results merely from the conversion from the rate negotiated in pounds to therate filed in tons and the load factor of the particular commodity

mharris
Typewritten Text
47
Page 62: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

48 FEDERAL MARITIME COMMISSION

DISCUSSION AND CONCLUSION

The rate negotiated between Sea Land and Nepera and the rate filed bySea Land pursuant to its application are clearly at variance The rate filed

would result in a charge to Nepera greater than the rate negotiatedThe Commission held in Munoz supra at 1193 that

Section 18 b 3 requires that prior to applying for a refund or awaiver the carrier file a new tariff

upon which such refund or waiver will be based When read inconjunction with the statements

in the House and Senate reports it is clear that the new tariff is expected to reflect a priorintended rate not a rate agreed upon after the shipmentT he authority granted by P L 90 298 to depart from the rigid requirements of Section 18 b 3

of the Act and to make a rate applicable retroactively is strictly limited and in our opinion would

not extend to approve a rate which was never agreed upon or intended to be filed

No argument has been advanced that would justify a modification of that

holding Munoz reflects Congress intention that the requirements of section

18 b 3 special docket applications be strictly applied A strict applicationdoes not allow even for a de minimis exception

THEREFORE IT IS ORDERED That the Exceptions to the Initial Deci

sion of Sea Land Service Inc are denied and

IT IS FURTHER ORDERED That the Initial Decision served April 23

1979 is adopted and made a part hereof and

IT IS FURTHER ORDERED That this proceeding is discontinued

5 FRANCIS C HURNEY

Secretary

Page 63: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

SPECIAL DoCKET No 606

APPLICATION OF SEA LAND SERVICE INC FOR

THE BENEFIT OF NEPERA CHEMICAL INC

Adopted August 8 1979

Application for permission to waive and refund portions of freight charges denied

Carrier applicant failed to publish specific commodity rate on a particular commodity aftercancelling and republishing its tariff although its solicitor had indicated to the shipper thatthe specific rate would be carried over into the new tariff This situation may have resultedin a tariff error of a clerical or administrative nature or constitute an inadvertence in failingto file a new tariff However the application is fatally defective because the carrier in filingthe new conforming tariff prior to filing the application as required by law filed a ratedifferent from that quoted to the shipper and from the rate which had been published in the

previous tariff

Since the application was filed on the very last day permitted by law it was too late to reject theapplication so that carrier could file a corrected conforming tariff and new application

INITIAL DECISIONl OF NORMAN D KLINEADMINISTRATIVE LAW JUDGE

This is a special docket application filed by Sea Land Service Inc SeaLand seeking permission to waive a total of 42 569 90 and refund 280 00in freight charges for the benefit of the shipper a company known as NeperaChemical Inc located in Harriman New York Sea Land seeks this permission in connection with two shipments of a liquid chemical known as betapicoline 2 carried in tank containers on the SEA LAND GALLOWAY whichsailed out of Port Elizabeth New Jersey on June 10 1978 bound for the portof Barcelona Spain The first shipment consisted oftwo containers in which an

aggregate of 73 680 lbs of beta picoline were carried The second shipmentconsisted of three containers in which an aggregate of 108 820 lbs of this

commodity were carried

I This decision will become the decisionof the Commission in the absence of review thereofby the Commission Rule 227 Rulesof Practice and Procedure 46 CF R 1502 227

2 This commodity is referred to as picaline in a Lands tariffs but as picoline in Sea Lands shipping documents letterstnd application According to Webster s Third New International Dictionary at 1711 the correct spelling is picoline and betapi ine is a liquid used in making nicotinic acid Sea Land ought to correct the spelling in its tariff

mharris
Typewritten Text
49
Page 64: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

50 FEDERAL MARITIME COMMISSION

The application wasmailed from Sea Land s headquarters in New Jersey on

December 7 1978 exactly 180 days after the date of sailing and is underconsideration in accordance with the special docket provisions of section18 b 3 of the Shipping Act 1916 the Act and the procedures establishedunder Commission rule 92 a as amended The sworn application is welldocumented with affidavits inter office memoranda letters bills of ladingfreight bills pertinent tariffpages and a calculation of freightcharges as billedand collected from the shipper on each of the shipments All of this evidenceappears to make out a case for the relief requested on the basis of tarifferror

of a clerical or administrative nature as well as inadvertence on the part of thecarrier to file an intended rate prior to the time of the shipments in questionas described in greater detail below However because the new tariff which

Sea Land filed to correct its error does not conform to the prior intended rate

and because the application was filed on the very last day permitted under the

applicable law and regulations so that a new filing is impossible the applicationmust regrettably be denied

FACTUAL BACKGROUND

This case involves the failure of Sea Land when canceling a previous tariffand republishing a new tariff to continue to publish in the latter tariff aspecificcommodity rate on beta picoline although Sea Land s sales representativehad indicated to the shipper that such rate would be continued in the latertariff

The welldocumented materials which Sea Landhas appended to its application tell the following story Prior to December 31 1977 Sea Land had published commodity rates from US North Atlantic ports to ports in Spain in its

Freight Tariff No 166 FMC 43 That tariff had contained a rate on Picalines refined mixed of 6 85 per hundredweight minimum 40 000 Ibs percontainer Tariff No 166 Item 9140 On December 31 1977 Sea Landcancelled this tariff and published a new tariff for tank trailers namely TariffNo 232 FMC No 104 This new tariff failed to publish a specific commodityrate for picalines Before the new tariff had been published however a

Sea Land sales representative Mr Karl Douglass had requested Sea Land s

Pricing Department to continue the old rate of 6 85 per hundredweightminimum 40 000 Ibs in the new tariff and furthermore Mr Douglass hadnotified the shipper Nepera Chemical Corp that this old rate would becontinued in the new tariff by letter dated December 6 1977 Somehowhowever the Pricing Department which apparently did not know of theserepresentations made to the shipper did not cause a transfer of the old rate tothe new tariff The result was that when the shipments of Beta Picoline were

carried on June 10 1978 there wasno specific rate for that commodity and thecargo N O S rate for liquid non hazardous a higher rate of 63125 per ton

of 2240 Ibs minimum 40 000 Ibs per tank was considered by Sea Land to beapplicable TariffNo 232 Item 10 12th Rev page 5

Upon learning that the shipments were rated on the basis of the CargoN O S rate Sea Land s Pricing Department requested the Tariff Publicatiot

Page 65: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPLICATION OF SEA LAND SERVICE INC 51

Department to publish a specific commodity rate for this item This was doneEffective June 21 1978 only 10 days after the sailing Sea Land by telex filingpublsihed a rate on Beta Picaline in tanks of 162 25 minimum 17 WT pertank container TariffNo 232 6th Rev page 5 A Although the shipmentswere rated on the higher Cargo N O S rate basis the shipper did not actuallypay the amount so rated On the first shipment of two containers the shipperpaid 280 50 more than the freight charge which would be payable under thenew rate of 162 25per WT minimum 17 WT On the second shipment ofthree

containers the shipper actually paid 25 less than the freight which would be

payable under the new rate Sea Land wishes to retain only the total amount

offreight calculated on the basis ofthe new 162 25 rate and if the applicationis granted would in fact be refunding 280 25 to the shipper and would be

waiving any amount of freight over a total of 13 79125 which are the total

freight charges calculated on the basis of the new 162 25 per ton rate which

Sea Land wishes to apply retroactively to the shipments See Calculation of

Freight Charges on Shipments of Picolines from Elizabeth N J Ex 7 The

amount of the waiver would be over 42 000

DISCUSSION AND CONCLUSIONS

As mentioned this is a special docket application filed under the provisionsof section 18 b 3 of the Act as amended by P L 90 298 Ithas been recognized in numerous special docket decisions of the Commission that this law is

remedial and equitable in nature and is designed to relieve shippers of financial

harm which would fall on them because of carriererror in tariffpublishing and

filing See e g D F Young Inc v Cie Nationale Algerienne de Navigation18 SRR 1645 1979 Ghiselli Bros v Micronesia Interocean Lines Inc

13 EM C 179 182 1970 Hermann Ludwig Inc v Waterman SteamshipCorporation 18 SRR 383 385 1978 Westinghouse Trading Co Division ofWestinghouse Electric Corp v American Export Lines Inc 18 SRR 570

572 574 1978 Nevertheless it is also well established that although the law

is based on equitable principles applications for relief must show that a bona

fide error of the type contemplated by the law occurred and that certain other

conditions have been met For example applications do not qualify for relief

even under this remedial statute if a zealous solicitor makes unauthorized

representations to a shipper which the carrier never intended him to make or

if a rating clerk misreads a tariffor misquotes a rate in a tariff and the carrier

never intended its tariff to conform to the unauthorized or mistaken quotationSee Farr Co v SeatrainLines 17 SRR 1463 1467 1469 ID 1977 18 SRR

369 F M C 1978 and the legislative history to P L 90 298 cited in 17 SRR

at 1467 n 6 Equitable though this law may be the advocates of the law made

clear to Congress that ifthe Commission obtained the authority to grant specialdocket applications it would act carefully to guard against rebating and would

not treat these applications as matters to be rubber stamped See remarks of

Mr John Mahoney and Chairman Harllee to the House Subcommittee on

Merchant Marine and Fisheries cited in 17 SRR at 1467 n 6 These remarksin the legislative history furthermore demonstrate the important fact that

Page 66: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

52 FEDERAL MARITIME COMMISSION

carrier intent to file a conforming tariff prior to shipment was considered

necessary Mr Mahoney a spokesman for the bill even stated that i f theCommission gets this power it must be made clear that carriers and shippersalike will have a very heavy burden to show good cause for relief under theseconditions Hearings at 103 cited in 17 SRR at 1467 n 6 Chairman Harlleeconcurred with Mr Mahoney s sentiments Furthermore the Chairman as

sured the Subcommittee that the proceeding would be carefully examined byan Administrative Law Judge then called hearing examiner toensure that the

applicant had established the factthat there has been a bona fide mistake See

colloquy between Chairman Harllee and Congressman Edwards Hearings on

H R 9473 before the Subcommittee on Merchant Marine Fisheries 90th

Cong 1st Sess Sen No 90 11 1967 at 88

In addition to the above it is clear that there are certain jurisdictionalprerequisites which cannot be waived and which every applicant must meet before the Commission can grant the relief requested Among them are the re

quirement that the application be filed no later than 180 days after date of

shipment and that the new tariff showing the rate on which relief is based be

filed before the application is filed 3

In this case although not entirely free of doubt it appears that there was an

error in Sea Land s new tariff published after December 31 1977 becauseSea Land forgot to continue publishing the commodity rate on picalineswhich had appeared in its previous tariff It also appears that Sea Land mayhave inadvertently failed to publish this commodity rate in its later tariff

because ofa failure of communication between the solicitor who represented to

the shipper that the old rate of 6 85 per hundredweight would be continuedin the new tariff and Sea Land personnel authorized to make good on his

quotation Iqualify these findings because of the fact that it is not clear that

Sea Land conceived the intent to continue the old rate in the new tariff priorto the time of the shipment since the official Mr Kenneth D Nenart who

apparently had authority to back up the sales representative and cause the oldrate to be published in the new 1978 tariffwas unaware of the quotation made

to the shipper when publishing the new tariff and states that had he known

of the quotation made by K Douglass to Nepera Chemical he would have

published same in the applicable tariff to protect booking made Affidavit ofKenneth D Nenart Assistant Pricing and Conference Manager MediterraneanService of Sea Land Service Inc

Although prior conceived intent by a carrier hasbeen found to be a requiredelement before the Commission could conclude that there was an inadvertentfailure to file a tariff had there been no jurisdictional defect otherwise in the

application this application could have been granted perhaps by finding thatthe later ratification by Mr Nenart of the original quotation demonstrated a

I Soction 18 b3 oftho Act utbarl the Commi ion to lrant lpOCialdooket applications but amon othor thinp providclthat the common carrier bywater in foreip OJRllnercc haa prior to applyina for authority to mako refund filed anew tariffwith the Federal Maritime Commission which lOts forth the rateon which luch refund orwaiver would be bued and providedthat application for refvnd or waiver mUltbe filed with tho CommiuJon within one hundred and eiahty days from tbe date of

shipmentSee MUnDII Cabrtro v Sea uNi Stn ct lnc 17 SRR 1191 1977 and the lcaudative history diacul1lCd In Fa Co

v S tltlln UnI IUpra 17 SRR at 1467 n 6

Page 67: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

l W Zl

QW 118l1 ItJ d l s a1l1 l 1 M lUa 8 S Jllqwaw

S1 JO MaU JMaU ulJ Juro aliI q8notUIe luawd l s JO aW l all 18 I lJfilllU A18JIS Wpll 10 Ilr al e JO uJet s UU JUOO aliIUl JOJJus SlUO lllnn 11lln puno UO SSlwwoau Ja1J B llqW lW Sl JO lUlW lOJSB 111J 31 SU Jl eJ 1 ul U Kl eld Ul 81 pellUawd l s 1111 JillJtl lIlJlIl l pJJOCl aql lIY 01 pl10A II SUO lB lOSlU 11 JO paU1Jrl 1 Ulq lUlwd l s 01 JO1d SUO 111 10SaU S J JBaliI

0 OlDlIOU P P KU lJuoo lqlllJnoqIIV l 1Bl llqBIddB 11t1 U llU JSll nn qSlqnd PIROO KluU lJUro nl1llllp os luawd l s

01 Jopd UO lUlll e S U llJUOO l1p 01 Jlll1lW llll SU1q 01 plP ISau peq IRq JxJd l s e IfllM ll1lJ e uodn plQJSe pill UlJaJuoo

UU lJuro IIJO JIlqWlW ll JJBe11ll J UMOqS SllNll uaqM UO1lr Iddllll fXlP ll dSIIpllUllJS UO SS WWOl IlU BunoA 1 0 UJ

liullllS Aq SJlqwnu U lliUlllO SnO Aqo S ll SU llldXl PUll1 lllS UO lllolddll Sl

UI ilI Jlll Jlllll lll OlU JlAO plpJ1l0 lAlll PlnOM 1I1lU lN JW lO lM pUll JOOd ls

lll Ol pllOnb Ullq pill lO lM llllJ Jl lJlll lll Sll lWllS lll llllJ Jllllll S ll SI

9 XtJ SL Wlll ZEZ ON lJplll SUOllllipM l1L 1 wnw u w sql 017ZZ JOUOlll lipM JOO Z Z91 SllM pllOU Sll ll1lJ MlU S 1lL iSfUlll U lUl1l0 d llllg

JOJ lJplll MlU Sl U pll slqnd PUll1 lllS lO lM llllJ 11lnpll lll SllM llllM lngLL61 9 JlqW lllJ

pll1lP Jood ls Ol SSllllinoa JW JO Jlll l1 lIllU lN a l llUU ll JO l AllPIJV

lPllW liup ooq lYllOJd OllJPlll llqllolddll lll U lWllS pll Slqnd lAlll PlnoM

ll lllll SlllllS lJllUlN JW pllOU Sll UO llll0nb lO lM Jood ls lll Ol lpllW

SSllllinoa JW lOlM UOllll0nb lll O8lll SllM Sll 01716 Wlll 991 ON lI Jlll

plYlU1l0 pill PUll1 lllS lOlM lJ Jlll Jl lJlll lll II pll S qnd AISnO AlJd llllJ

PllXl lll SllM S ll sql 000 017 U W lMO S 9 SllM plJJ ljlJ UlW lIlUlli lSll l

JO JIll lOlM Ol llllJ lll SL61 9 JKJW lYla Wll llJOOlN liJlqJ lpoS

ll P3 SW Ol SSllllinoa WOJJ Jlll l1 llllp lWllS lIllU lN Ol l Sll WOJJ OWlW

LL61 OE JlqW lAON lIllU lN Ol SSllllinoa WOJJ OWlW YlS UO lllolddll lll

Ol pll OllllllllpUllJOWlW 11lUJllU 11lJlA lS lll U plJJ ljlJ Slll oyo S PUll1 lllS JOAUll lO lM Ol llllJ llll SllM JON LL61 9 JKJW Ylllpll1lP Jlll l1 S l U Jood ls

lll Ol pllOnb pill lA llllUlS lJdlJ SllllS S PUll1 lllS lOlM ll1lJ sno AlJd lll

lOU SllM llllJ S llpll slqnd SllM lllll llllJ MlU lll JlP SUOO JlA lMOH SfUlllU lul1l0 d llllg UO llllJ Al poWWOO oJpoos 1l l slqnd JlYlPU P P lJplll MlU

llllJJlll MlU Sl pl1Y PUll1 lllS liuIllS JllJll SAllp 11 AluO SL61 lZ lunf uo

liulY lll Ol JOPd liuIllS JO ll1lP JllJll SAllp OS I AIPllXl SL61 L Jlqw lllJUO

lAOqll punoJ ISll pl1Y SllM UO lllolddll lll lS1l0 S ll uI E q LlS s n 917

plSllq lq PlnoM JlA llM JO punjlJ lons lOlM uo llllJ lll llIoJ SllS

lOlM UO SS wwolW lPllW 11lJlpldlll ll M lIJlll MlU 1l pl1Y punjlJ llllW

Ol AlPol lnll JOJ liU Alddll Ol Jopd Sill SJl ll1l0 lons JO YlU lJlJuoo JO YlJ lWWOO

ulipJoJ U JllllM Aq JlpJ1l0 uowwoo llllllll JiJl lmf piJP tloJJ SUO l1l0 lddlllUllJli Ol UO SS wwolll Sl WJOO E q 81 UO lYlS lIlld lUlU lI00 U snll Mlll

llqllolddll lll Aq plsodw uOlpuoo PUIXYlS lll Ol SllllpJ lrJlP 11llllJ lll

Mill lll Jlpun plll WJOO Allp lSlll AIlA lll Jlun

pl1Y lOU SllM UO lllolddll lll lsnllllq plm l lq lOUU1l0 uOlllo lddll Sl U lYlJ lp

11llllJ S lllllll lJOWJll lInJ pUll plA llM lq lOUU1l0 lUlW lJnlrull lM Mill Aqplsodw lUlW lJ nb lJ lllllWOl plJ llJ Sill PUll1 lllS lllll SMOlS UO llll lddll llllllll S lUlW ll1llS S ll JOJ UOSlllJ lll lJPlll Jlllll lll U llllJ Al poWWOO pllonb

lll l1Y Ol lm llJ lUll llAPllU JO JOJJl 11l0PlJO JO lA lllJlS U WPll JO lsnllrq

lJplll Jll1ll S PUll1 lllS liu l slqnd lJ U JOlll Jll l l Sll S JqlllSl 1I1lU lN JW

Aq UO l1l0Y lllJ 1l lons Jll lll M lprp Ol AJllSSlYlU lOU S l JlA lMOH

6L6I 1791 MMS 81 UO luE tlUN iJp iJUUiJ JiJEW iJ tJUO lUNiJ uEudwoJ tI JU EunoJ a J lIJlll Jll1ll Sl U UO llll0nb lll l slqnd Ol

lUllU liu lS JqlllSl AqlJ lll SJOlPlOS SllllS Sl dn liupJOllq JO PUll1 lllS JO AJlod

rr lI II rlIIIl lI J IIlII l V

tpayton
Typewritten Text
tpayton
Typewritten Text
tpayton
Typewritten Text
tpayton
Typewritten Text
53
Page 68: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

O

OI rd ZZ

OltOSIL tS IfIIboLI x ItOtSISoOlL tS IJ1I1tbo IlOI x ISoSS

OttO IIS nbo ISoSS X

OJIOJ aW Idd al J allw OJ pUU IV allJO q 81 UO JlQS JO SluaWOJ nbOJ p8p all WOJJlJudap 01 86Z 06 Td Aq paluuJ8 AIPOllnU all ssalallJaMu Jadd ls all uodn nUJ PlnoM BJOJJa A I

nasuoo S JaJJ allJosuanbClsuoo all palUapq UO I Idd all Plnols IUlllnJulOOOJ aMaUIIA

OIUawd ls all JalJu uodn 31UJ U IOU alUJ paPU3111Jopd JQUaJ OJ P31adxa S JIUI Mau all I II BalS I SlJodaJ aluus pu snoll all IISluawal S allll uO1 unfuoo II p OJ ual panq q IIJaA M JO pUnp1I nsI IM uodn

JII MaU a19 Ja allJaAUM JO punJOJ JOJ ilU Aldd OJ JOpd I II SOJ nbOJ q 8l UOJlQS

SMOIIOj SU AUlP Ol JOj SllM l AqM plUJllldx I UO SS W

WolU pI Ulp lJOjlJ lql SIlM UO lllolddll lU wiHI jO llllJplQJlIll lqllOU wiHI OV jO QlIlJ Il plqs lqnd IJllll lA lOQJJOO lql JlA lMOH UO lllnddllllJJOOp JIl OIds Sl Ol JOpdlJl1ll lA loaJJOO lqlpllY PUIll IllS Jllll l lUlwd qslql Ol Jopd llllJ pIIJlIIl lql lIY Ol plnllj lnq IJlIllSl U plp AOJd QlIlJ Jlql qlql jO PIlllSU wiHI jO llllJ IlllllUlwd qs Il fullOlpIIJlIll pllq PUIllIlQSlSIlO lllql UI spunoJlI ISOql IOSOIJd UO pIUlP SUM UOll1l0ldd1l lql LL6I1611 MMS L1 3111 IJJfiUIJS PUTJ7 TJIJS OJIJJqDzounp uI MllllUlJJnO lql

SJ q ms UO lllo1ddll lql Ol JIllllj SJ UOllllIddll lql Ol Jopd pl1Y lJJIllJQlIlI lqlUJ llIUIlqo Il qons uOllllo1ddll llJJOOP IIl OIds Il U lUlwd ls lql Ol AIlAllOIlOJl IJllllJ lIUJWJOjUOOUOU JQlIlI SJql Iddll Ol JJIIS pUll JlpJIlO pUll Jldd qs UIIMl lq

lIUJpUlllSJlpun lql Ol JOU llllJ pllOnb lql Ol WJojUoo lOU SIOp qOlM QlIlJJlqloUll lJY ulql pUll Jldd qs Il Ol llllJ lUO Qlonb lOUUIlJI JJ1lIl lllql S wl1

qoJd lU lUlloy ulI s JlIlIJlI SJ QOUlJ IlJP lql Mlllllu uJlAolI Jlpun JQAlMOH

lulloy ulI s lOU S QOUlJ IlJP lql SJlqwnu UJ sdllqJld JlU IllUOO JId t8 L tpllIJllqo lq mM Jldd qs lql UOllllolddll SJql SlSllq l qO qM uo pUll pl1Y Jlllll

PUIll IllS qO qM IJllll MlU lql Jlpun Ql1J JQlJIl l lql jO SJsllq lql uo JlUJlllUOO

JIdOtL t IUO pllIJIlqo Iq Ol pllO IdXIpUll PQlonb SUM Jldd qs lql J snuJlUJlllUOO JId Z 81 S pllOU JJISl pU1I1 llQSsu QOUQJQlJ PlU L n L t

Ol SlunOWIl alllJ Jan1l1 aq1 JId S1l QlJJIlqo aq1 S1lIJaqM OtL Z 01 SlunoWll

alllJ JalJll l aql JOj JlU IllUOO JId lllJ1lqo lqll lJj JIllOl aql snu SUOl L 1 lOU

SUOllJuol 98 L1 Ol SlJaAUOO sqlooo 01 plpunodtuoo JaqlJnj SJ AOUlldaJOSJP lqlal1J JQl1l1 lql JOj wnWJu w uOllqliaM L1 aql pUllll1lJ Ja1JIl l lql JOj wnWJu w

sql OOO OV lqllUnoooll OlUJ lIUJJJIll Aq pIJlP SUOO SJ QlIlJ Qllldwoo lql UlqM

lJoWJlqlJn il S 1VE 1 Ol SlJlAUOO l Jll lllM sql onz jO UOl JId tt91 Ol

lJlAUOO lOU soop AldWJs lqll lMplJpunq JId 8 9 jO QlIlJ 11 IIIl011lwqlPYJauIlluoo JId nl jO salJJ1lqo

lqlJIJj UJ lS1llJOUJ U1l OlllUJ1unOWlllOQDa U allu1lqo aAllulllsqns Il SlJJllW al1lJMlU aql SllOU pUIlllas UaAI sll lng SSlllBnOlJW Aq Jldd qs lql Ol P1W

UOIl1ll0nb lqlol pUll alllJ IJllll JI lJIlI aql OlplWJOjUOO aAllq PlnoM l QOulllsqnsUJ lUlW IJ nblJ lql lM wnWJUJw UJ l8ullqoou ql sUOl Ol llJll aMplJpunqWOJj UO SJlAUOO olllwqllJll UIl uaaq 1lJlW QlIlJ MlU aql PIlH 0 qdllJlIllJIldllIlld Mql uollll1ddy JJUlll JId t81 jO QOUIJIlJP 11 SlUlS lJdIJ UO SJlAUOO

SJq Al poWWOO S ql jO JOlOllj pOOl aql plloaY lJ SUOl lqB lM L1 jO wnWJU W aql pUll SJsllq UOl JId lqlOl pllJaAUOO SIlM 991 ON IJl1l PUIllIlQS U

UMOqS SIl INO JId 8 9 jO llllJ sno AlJd lql Wll MlU lqlllUJqSJlqnd U lllql

U ltlI uUT o1 II 1UI 11 101 1

tpayton
Typewritten Text
tpayton
Typewritten Text
tpayton
Typewritten Text
tpayton
Typewritten Text
54
Page 69: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

nJ J ZZ

L J W l31Jll dl 8U llq PO J AUp081 111 1xlJ lP 1 1lJM 01 1111 001 pm1Jlll SllM 1 SL61

8 JOC wma UO UO SS wwO tj1Q l1enlJll StUn UO l11lgddll II I lW 1XJ1 q JlA lMOH J dJ polo1d lWP AllP 081AlOln181S lljlUOJ UO 1trndd8 IU II PUllDI J1l19u uuoJuol l JJOCl e lIY Plnoo PU lroS lllljlos ltlJ lp jllUoppsjmrllll1 J Iln 01

UO lUnre S put loBS II 01 llq ssod umlAllq lqil w 1 UO l11l lddllll1 new lIY0 t llj q l WJxISliM I l IIM UO Allp ISll

AJ 0 llun l llM IOU pUtr llllS pel 11111 lOU oc Plnoqs I JlAlMOH Ulp K 18nw UOlll Iddll qll ql lIQenu1bJ S 11 a

6L6l 0 lLdVa NOlDNIHSV1

aiJpnf MV7 al IVL1S U UlPV3Nnl a NWHION S

Ul Ul suq l

qlqM UO PU lql JO UO SS WWOlql AJ lOU puu lqilllJ JO lUnowu IInJ lqlllAOOll Ol sdllS lUl lIuqs PUU UlS uuY APA lUllS U WPU Slwoooq lS Allqlo lO

UO SS WWOlql Aq plldopu S UO Sllp S qllllJU SAUP OE U ql M A ilu PlOOOY

EE61 PZ MTY E8 puu E961 LtI PZ MTY 88 U UO SSnlS P

Z 61 98L 8L g Wd E Tv la P17 sU7J uallaH 1 IV la SUO IVN panufl

69P 89Pl lU MMS L 1 vLdns sUn U VL1VaS 1 0 LLVd 0961 l ql

PE8 ZE8 a8PZ d a JuI lLodsuv LL LIV pa1V JOSSV 1S1V1S panufl H61

l ql8 L9Z1 E9Z1 PZ d L8P 0 alaL JUoX Pl tfpvaH 1 0 1I 0 II

o vJ I U61 l pO 09E 6 E L E PZ d P P tfuvdUloL Ol1vQV LamPl 1

0 J JvJ uLal tnos 161 L6 P6 s n LEZ uaMXVPl 1 tfH amllsvN

amiS n07 llS sllnlxl JO sSl pluilll lunowu lUql llAOOOl Ol sdllS lUl

lsnw PUU UlS lUlwd qs JO lW llU l qullddu lJlUl lqlllpUn lnp SlillUq l

lqil llJJO lUnowu IInJ lql pll lAOOOllOU suq PUU UlS L xtO MOqS SlUlWn lOps PUU UlS su llU S 8 pl Ulp lq lsnw UO lUllddu lql SUOSUll lAoqU lqllOd

p lU pll l lSUl UO S lla U l UI 8L61 ZPPl 6EP MMS Ll

aJUa LafuopunoQlsaM JftJvJ 1 JUI tflva tfLUaH puu LL60 ZL 11

IL11 MMS L1 JUI aJ Mas puv7 vaS 1 JUI 1 1Lnd s n07 ilulp plA UM lq

lOUUUl puu UUO p pslnf S UO lUllddu lql ilulY OllOld lJlUl MlU U JO ilulY

lql ilU PlUilll t q 8 uOlllS JO OS AOld pUOOJS lqlluql pllOU llZUU D l8pnfpl Ulp lq Ol puq UO lUl ddu lql plllilu ll Jllllsu 008 1 lOU llIf UlUOO lOO

lJ OOZZ wnw u w W19E SUM lJlUl lUql U plJY llUl lqllnq IDlUl MlU U

plJY ll llUllql UO lUllddu ll lOP UPOOS Sl illfJY OllOld plJY APWllOU SUM

qlqM llU UlUOO lOO 008 1 JO llUl U uodn plllilu puq lood qs puu ll llUllql

lSK lUql uI OLl MMS 61 6L61 z ldy plAl lS UO S lla U lUI JUI sUn

IliJ aLd SUVLL 1 tfuvdUloS OU llI suaME8 ON ll lOa UPOOS ilUplllOld

ll lOp U lOOS llqlOuu U AIlUllll pllJn llO suq UO lUDl S JO OOAl lWUS lll

T6111B nls LI

PIY oq 01 PPUOjU JO uodn P UllB

JMOU SBqO q OIBJ B OAOJddB 01 PU01XO IOU PlnouOju do JnO U pUB PI W AIloIS S A MlOB

rr 111 1I FI nll ll l 10 NOI I I1l lddl

tpayton
Typewritten Text
55
Page 70: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W d lZ 9S

tfltJl UJ SA3NlInH 0 SIlN olId S

jllUY Aj AllllJ1BlIwpll Wooq Sllq UO S oP 11lq1 AjiU pJ ll pUll apllWu q Sllq UOllllU WJ p qons oN pIdx Sllq UO Bop 11lq1 M JOl IIWJ l Ppjnoo UO sBwwoO q1 qO qM IIq1 M WJl q1 pUll Bu Jd S q1 II UO SJopJ1l11JU 6L61 z AJnf q1 01 pjy u q Allq SUO ldOOX ou 11lql U AJi SJ OOIlON

6L6T OTIm8ny

30UON

9161 JV ONldclIHS 11 NOIJ3S dO NOI Y101A3 81SS0d aNo NOI olnddV lI3al1oAollOd mOllllld NWQ

lIaNlIdllaNI Iso o NOUoNlIlI ISWlI SAS 001100

11 6L ON UIOO

NOISSIWWOawunrvw 1VM3aHd

Page 71: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

u nJJu

arlO ll IJ9 lnpollO d pUB OO P8ld Onll Ll l Inll uOfSS wwOl1l1Q jcmlql MfAaJ O XU qtt IlIl U UO llS wwoJII1 O UO S p Ill lwOClQCj J1 UO spapS lU I

lOlld JO Sl AllPlJV pUll Mill JO llpUllJOWlW lql AliiU pJOOOV UOlIlU WllXl SSOJO

pUll AUOWlS llIIlJO pllS lnb ulAllq lUlpUodS lM JOU IlSunO iiUlIl lH Jlql lN6L61 L AllW

UO AldlJ U lOlld JO Sl AllPlJV pUll Mill JO WnpUllJOWlW plIY IlSuno iiUJll lH

6L6I vI qOJllW uo lUlpuods lM Aq pln wqns lJlM lOlld JO Sl AllPlIV pUll

Mill JO WnpUllJOWlW iiU UOOO lOlld JO Sl AllPlIV pUll Mill JO llpUllJOWlW JOUO SS wqns lql Ol AIIIllU iiUpllOJd lql pll WJ Sllq SJlllllW ll pOOXl OllJOlJlUll U UO SS WWOlql ISIllUO lilUJllUI SWllSAS OiiJllJO lSlnOOJ lqllV

JlpJllMJOJ lqiipJJUllroo lUlPUOO lPU Ull Sll plSU l 1 lq Ol 9I6I lOV iiu dd qS q tv uOllS

JO iiU UlllW lql U ql M SSlUlY llS nOOJ lql sSlssod SJllIo llIlJodJOO Sl

PUlllllUO lIlUJllUI SWllSAS OiiJllplnppll l UlP Al JlqlO AUll qlM Jlql liiollnss iilI oiilJoJ lql Ol lUllnSJnd plnppll l UlP Al lql JO lqiiJ U Jlql lqM Z

pUll Sl lA lOll iiU pJllMJOJ plsu lJun U iiu iilliiul Aq 9161 lOViiu dd qS ll tv UOllS pllllIO A Sllq IllUO lllUJllUI SWllSAS OiiJllJlql lqM I

lJll plAIOS lJ lq Ol slnss

lqllllql ply OOs UO SS WWOlql U lJlqM 6L6I 6 qOJllW plAJ lS iilI JlllH

pUll UO lllii lSlAUI JO JlpJO UO SS WWOII Aq pllnmSU SIlM iiupllOJd SlL

vI 6L ON

300m MVl

3AUVM SINIWOV AA3l W A31NV S dO INOISD30 lVUINI

UO SS WWO lWlJllW IllJlpld Jlsuno iiUJll lH JO nlllJng

nlllJng JOllJ O s 1iF l1qoH uiOf pUll 11unH 7 s11 viJ UnlS 8 id1S0fIS IllUO lllUJllUI SWllSAS OiiJll lUlpuods lJ JOJ oJsnj 11UON f uiof

6L61 Ollsn2nV P1Z VU d

9161 IJV DNlddlHS tv NOIIJ3S m SNOUY10IA318ISSOd ONY NOUYlI1ddV 30 Y UOd lHDI3 d NY3l0

lN30N3d30NI IS 1VNOIl YN 3lNI SVII3lSAS OO Y

NOISSIWWOJ dWUHIVW 3a3d

Page 72: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W zz

JO lOQlOO AlllUOSJ ld lOU PIP llq SlUllWd qs lqS IlJj UllllOO UO IlSllJlllJOJq SU SSMSll

OAOj lldllJd AIJlllnSllJ 1SjO J1llq UO llpllS JW qSnoqllv ss l llPYJY AllW I1l AllPYJY llpllS jlllqllq Sl UO slullwnxp qms

uS S Ol IS Aq jJoqlnll SllA llpllS JW Olll uojlllJllllP fJodXll SlUllwnxpJlllnsuoo SldlJ lJXP SOjPlll jO smq SU pnIOOj Slullwnxp lq8jllJj UllllOO

jO UO lllJlldJd llql pnlou sljlnp S llpllS JW 3SAq AOldwll 1l1lA Lvi S LiS l llPillV AllW

v II l llPillV llpllS lJlS JOlOQlI OV III lYJo s IS III SSIlU Snq mpuoopUll AJll1llS AlJ A l3 11 AlJ llpllS JW ISjO AOldwll Ull sy 9

s LiS l AllPillV AllW v I1lllPillV llpllS SlAJ3 SU pJllMJOjlqS IlJj UllllOO WJOjJOO Ol ISAq J q SllA llpllS JW SL61 I AllW uO

SI LI isl AllPillV AllW 1 I1l AllPillV 1lP1lS 3 ql A lUllWAOldwll IIp SlnO ldll1lOl Ildwoo llJOjllJllql SlIA llp1lS JW LL61 11l1l1 OJ AIJ1l11ulllsqns p3ll11JlP p1lq

LSAq lOnpuoo sslu snq jO llWDloA llql sIllnoYJlp 11l 0U1lUY Ol llno 01t oNSUl1 Wd jO JllPloq llql SllA LS SL61 s lluncol JOjJd Z II l AllPillV

llpllS S v l llPillV AIJW 3 JOj J3 SUjpJIJAJOj lqll IlJj U1lllOO l WIllWOS WJojJoo LS ouI Au1ldwo SOjpllJL llpllS jO JllPloq1JXlS lllos PU1llUllP SIlJd llql JS llpllS Y pJllApt SL61 jO sqluow AIJllll llqlllOjJnO v

E Z l llPillV llJnlUllAlIUlllllJJ1lW jO JOllJ P PU1l lUllP SIlJd l A 1l S1l 3 Aq AOldwll u puq

llJnlUllA JW SJllllA llAY SOj Jd llqlllujJnO UllWsllllS UO SS WWOO 11 SlI S Sllql Wlll uo ISAq Aoldwll SllA llJnlUllA PUllWJY SL61 AJllnU1lC UI E

9 I1l A1lPillVllpllS S6vl J wnN 3Ul1 Wd 3Ul JllpJllMJOj lq8jllJj UllllOO lUllpUOOlpOj S 3JllpUn PJllMJOj llJllA SlUllWd qs lql llJj UllllOO S IS POjJoo SjqllIujJnO I0JAlld s 3 UO OjllwJ IllWJlll SW lJlS JOlllI 01 III AJ3

lIU PJ1lMJOj lqlljJj U1l1lOO lIOjWJOjJOO 1l1lA lJJOA AIlN lJOA AQN l JlSJOlOQlI OV III lYJo s ISOJ lllWJ1ll lllllq XlI SllllAOldwll Sl jO llUO 1lld

3 lUllWllllullJJll S ql ql lullpJOOlll uI SI 91 is l llPYJY AllW 9II l AllPillV llpllS 3Ul JllpJllMJOj lq8jllJj U1lIlOO lUllPUOOllPU s 3 JllpUnSlUllWd qs lqll llJj U1ll0 pJllMJOj Of lllqll PlnoA IS AqllJllqA lUllWQlIU1lJJll Ull OlU JQlUll 3 pUll IS SL61 jO sqluow AJJllll llql lIujJnO Z

lq qx3 snqlQ S l llPillVsnq lO 1 lAllPillV UllWJ3S11l ISjO JllPloq1JOOls lllos PU1llUQP sQJd lUWn

Qql Sj UllWJSSIPJllqO lI SUO lOUnj 11lUOjlllJOOO pUll lIU lQlJJllW OJ P ll Ol ISIII llJllllZJ1l1 ullqdlllS pUllllJnlUllA pUllWJV s Aoldwll Sl jO OAl llld 3

UJlUOO lIU pJllMJOj llfOJd 11 Sll lOll Ol pllUlI SllP SlIA IS 3 UO lllJOOJOfJodx3 OllJlljO IIo u ds 11 Sll lllllJLL61 IjJdy U A3JllC AIlN jO IlllllS QqljO SAlll11ql JllpUn lllJodJoou SllA ISIllUO lllUJlllUI SWlllSAS 08JllI

lVd 110 SONJaNld

3110 s ql jO UO lllU WJlllllP pUll UO l SodlijpJOj llllljJdoJddll pUll lllllnOOpll S pJQlJ P llS l1lql pnlouoo S l pUll 8uoJd Sjql U pJQlJ llql lllnl lSUOO lUllpuodsllI pUll 13uno8OjJll11H Aq plllJ

tpayton
Typewritten Text
58
mharris
Typewritten Text
Page 73: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J VII j ZZ

JO ISJ fY sApl llqunJ lH fY JfOAll UlXj plq lSUJI llpll hlOJ lqll llJ UllJO

1UlPUoo lPU s ns lllq1 ISplWJoJU upuS JW SL61 Alnf P W uI Ll

I lUlWq lllllV uuuqlSS llPJuqlHI 01 MOD 1 SlJJuq SL61 n Alnf JO Jlll lJ iiU pJllMJOJ 1q8 lJJ

UllllO plsu llIun U pliilliiu l Ullq pllq IS1llq1 lAoqll Ol plll lJlJ llU lJlJ lJJO SJlll l1 lql U fYU lllUOO SUOHsl ns lql U llldxl ISJ lllql pllS lnIYlJ SL61

9 Alnf pl1llp Jlll l1 Aq SJlpJllMJO lqii lJ JOllYJO S UO SS wwoJ lql 91V 1UlWq lllllV

UllWPSSll pJllqlM Ol MOD 1 SlJJllqJ SL61 1Alnf JO Jlll lJ iiU pJllMJOJ1qii lJJ UllllO plsu llIun JO UOlq qOJd PP UO lllS lq1 Ol Jlll lllllql U pl1llJ

P SUM UO lUlllll S IS UO llllIddll SIS JO 1dlllJ pliip lIMOIDlll SJlpJllM

JO 1qii lJJO llYlO S UO SS WWOlql SL61 1 Alnf pl1llp Jlll l1 AI II 1N qx3 AllW f S l AllPYIV AllW iiU pJllMJOJ 1qiipJJ UllllO

plSU llIun U pliilliiU l Ullq pllq IS lllql lSliiiins Ol plJlloodll SJlll l1 lSlql

JO OMl llU lJljlJ JO SJlll l1 lAY lJlM UO llllIddll SIS iiU AUlldWOOlV PIfS l AllPYlV UllWPS

Sll S l AllPYlV AllW lJlI lZJU1 UlA l1S pUll pUlllll llpqlOM lJlM SllAOld

Wl Sll UO llllIddu lql U plY lUlP OSJV Ol lSUll1 JlpJllMJO 1qii lJ

UllllO PIUA JO JlPloq lUlS lJd lql SU plqP lSlP SUM UpllS JW AJll1lJ llS Sll

JS llpllSpJUMP3 pUll JlPIOlpJ 101S lIOS pUll JlJnSll lJl lUlP SlJd Sll UlluqlSS ll

pJllqlM pl1S IUO llllIddll 1llql JlpJllMJOJ 1qiipJJ UllllO 1UlPUoo lPII Ull Sll

llllJooO 01 lSUllIII JOJ UO llllIddll Ull plll wqns IS SL61 Alnf uO 1

T IlAllPYlV llpllS PI l AllPYlV AllW SL61 s lunf Aq puoq A1lJnS MlU

II lJnllS 01 lJqllun SUM llpllS JW puoq h1lJnS S lS lSlIlliill pllllld UlIlq1

AJS lllSOl spunJ lUllYlns llpllS JW pllUllApll pllq ISqiinoqllV SL61 nlunf

lunf uo JiJlsJ2iJN IDJiJPiJd lql U plJlloodll UO lUlOA lJ lq1 JOll lON P l AllPYIV

AllW II II l AllPYIV llpllS 01 JlqwnN lSUll1 W SL61 s lunf lAHll lJl

pl OAlJ UO SS WWOlql SL61 0 lunf plAJ lS UOHlllOA lM JO JlpJO AI n

P l AllPYIV AllW 01 II l AllPYlV llpllS AUlldwod qSWllllS

sPUllJJlq1 lN IllAOM Aq puoq lq1 lSU lliiu UlI U JO 1UlW llUld lq1 Aq plUO S

UllO SUM puoq A1lJnS S JlS JO UO llllllUll l lql pl OAlJ lq PlnoM lSUllIJlpJUMJOJ 1q8 lJJ UUllO 1UlPUoo lPII s JlS SL61 s lunf 01 Jopd UO SS WWO

lq1 q1 M plIY SUM puoq AllJnS P lllA U SSllun 1uql plUllOJU JlqllnJ SUM lH

pllllUU l ullqpuq puoq A1lJnS S lS luq1 SJlpJllMJO 1q8 lJJO llYlO S UO S

S WWOlql Aq plY lOU SllM llpllS JW SL61 01 AllW pllllP Jlll l1 AI II6 S II l AllPYlV llpllS ISJ 01 AIlllJ P

lpllW lJlM Sll AJlS iiU pJllMJOJ 1qii lJJ UllllO JOJ SlUlWAlld ISJO llAOld

Wl Ull Sll JPSW q pllU lSlJd lJ llpllS JW SJlpJll l pUll SJood qs ql s81I llllp

pl1 WI S q uI 6 l AllPYIV AllW d II l AllPYIV llpllS qlUOW Joo SlUlW

d qs 1qiipJJ UllllO All q1 JO AlUlM1 AP1llW XOJddll plIPUllq ISJO llAOldw lUll Sll llpllS JW SL61 JlqW lAON qiinOJq1 AllW sqlUow lq1 iiupna 01

PI S l AllPYlV AllW S S II l AllPYIV llpllSSlUlwd qs Ulllqqpll JOJ llllds 02lJlll plooq llpllS JW UlllqqpllJ lql JOJ

punoq lSoq11dllx l SlUlwd qs Ill JOJ llllds oiiJlllplooq OSlll IS SlUlWn lOp

1qii lJJ UllllO plJlld lJd llpllS JW ql qM JOJ SlUlwd qs lql pl1 lIOS IS 601 l AllPYIV

AllW L II l AllPYIV llpllS SlUlwd qs lSlql JO AUll UO l8llJl OJq lAlllJ

U y 1W 11 1 111 IIc 1 f nl i

tpayton
Typewritten Text
tpayton
Typewritten Text
59
Page 74: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W to

OZ 5 l llPYJV llW Jllqwnu IOUQJllJllJlJodXll IS11 pUll plllltjJlllllll IS11 pllJLIllO SllOIOAUJ llUJAUlldW ll llU JllqwnuIOUQJllJllJ lJodXll ISpllYllUllPl llUJPlll JO smq llU 0IZ JllqwnN UIOn Wd

J1QlSltjO 1lM llUJPlll JO smq tjllM UOlllunfuoo UJ OUI 0 19 UllWlJllH n dOl SllOIOAUl llllllJlllOJq JO JllqUJnU 11 plllllwqns plltj IS llltjl IOYJO lOJlS OOIlUllIlV S uOI88WWO ll1jl pllYllOU SllUn llSUllH JOJ SlUllllV OUI 0 19 UllW

lJllH nd lUllWlJlldoQ OYJllJ U0880J tjlllll SL61 SI JllqO uo tZ

S 9155 llAllpYJV llW slllUlldwoo OMl lltjl UQaMlllq plllS Xll dltjsuoll1lJllJ lllllJodJOO Ull llltjl pllJUQP 3 JO lUllP1SllJd oulllllld QUOD pUll Ullwl811 JW SMlJAJlllUl lUllnbgsqns uI I 5 l llPYJV llW 3 UOllllJodJOlJodX3 OlJJllJO AJlllPlsqns 11 811M ISllltjl palllolPul tjO tjM UOIlllWJOJUJ pllAllOgJ IOYJO llJlSO IllUllllV s uol8SJwWOltjl SL61 JlqW lldllS lllll UI EZ

tiS l llPYJV llW SIOIAJas

llulPJllMJoJ ltjll llJJ UllllOO WJopld Ol IS q AJllIllS AQaM 11 Pllld 811M llpllS JW

llltjl palOU UllWJasSlll JW JlltjlJnd S JOJ SSllUJSnq ltjlllllJJ U1lQOO llullOll08 IQJlW 811M ISllltjl uOllsod Sltj palllJllllQJ UllWJasSlllJW UOllll8JQAUOOltjl JO l8JnOO ltjllluJnO UOllllOlddll S ISJO snllllS ltjl Ol 811 QJJnbUJ Ol IOYJO

lOJlS O OllUllllV ltjlJIQlOlllUOO UllWJll88QI JW SL61 zz JllqWlldOS uo zz

E llqltjX3 llW n zl 55 l AllPYJVllW

Jllqwnu IOUlJQJQJ lJodXl IS11 plllS1 08111 8lUllWnOOp Q8QU SWalSS o8JllJlPJllMJOd lqlJllJd Ol plllOllJIP QJllM SllOIOAUJ Qtjl q pgsm81l SQllJlltjO Qtjl

Ol S1l SUOllSllnb I1V llpllS pJllMP3 q pllulllS QJllM pUll plllltjJlllllll IS11 plllJJllOSllOIOAUJ lJuulldw ll lU SlUllWnoop Qtjl uo pllJlllddll 08111 Jllqwnu IOUll

JaJllJ lJodXll ISV Jaqwnu asuIOlIllUJUJllAoll lltjlSll OIZ ON asuIOn Wd

pUll lUllllll llUJPJllMJOJ lltjl Sll ISpalllulllSllp llUJPllI JO smq lltjl JO tjo1l3 IZ

115lllPYJV llW 6L61 9 JllqwaldostjllnoJtjl SL61 OE llUnC plllllp SllOIOAUJ llUJUlldw ll lltjlPUllllUJPlll JO smqXls JO SQldoo tjllM llW JW pllllddns llpllS JW ISJOJ plllPUlltj plltj lltj 8lUQW

dltjs ltjllllJJ U1lQOO JO lJUJldWllS 11 JOJ paJlldlJd 5lUlwnoop IOnpoJd olJIQlSllnbgJ SliM llpllS JW MaJAJlllul lltjl JO uOlsnlouoo ll1jllV SL61 11 JaqWQldOSuo lQQJlS JOlOllH ot III IOYJO S ISIII JS llpllS V PJllMP3J1QMQJAJlllUl IOWOllJlSO OllUllllV S U01SS WWOltjl Ul JOlllllllSllAUl Ull llW V tjdl8OC OZ

z llql1jX3llW 5 llAllPYJV llW IlUJPJllMJOJ ltjlllQJJ UllllOO pasulOlun UJ pdlllJUll

uaaq plltj IS lll1jl IOUQJQJllJ JO 8JQllQI l1jl q palllQJO U01S8aJdUl ltjl ladSP Ol

J1QPUlllUI QJlM 8JQllQI Q8QU 171 5 lOlld JO llUJPUJd pgsodOJd Ul Ol JlQJJQJllr IOUQ

JaJaJ JO 8Jlll lI Qtjl palllwqns plltj OtjM spnPIPUJ Q1jl qpllullJs 8JllllllI JlltjlOOMl QJllM JllllllIS UllWJ Slll JW llUJAUlldw V JQPJllMJOJ ltjllJaJJ 11 SllllUlllll

uaaq llM Ull UJ lOU plltj ISlll1jl8JQPJllMJOd ltjJQJd JOlOYJO S uOI88 wwOltjl J1QWJOJUJ UllWJQ88QI PJlltjOlH SL61 6Z lsnllnv palllP JallQI s 61

17 5 llAllPYJV llW UOllllOlIddll S ISUO

llWllU S JS llpllS v PJllMP3 JO IOUlu1llddll lltjl pUll IS q palllwqns aoUQJllJQJJO 8Jlllllll ltjl q paSJllJ suollSllnb llAIOSllJ Ol JllpJO Ul UOllllllllSllAUJ Play 11 palnlllSUJ lUQWQOJoJu3 JO nllQJns s uol88WwO Qtjl SL61 171 lsnlJnv uo SI

n5 II l llPYJV llpllS SL61 s llunc Ol llAllOllOJlllJ plln88QJ

llq PJnOM asuaolS S puoq lQJnS MlU 11 JO llUJIY ltjl uodn llltjl Ja1aq Sltj

tpayton
Typewritten Text
60
Page 75: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

n f1 II

1lp1llAl10J lq2l llJ UlllX lUlPU xIlpU Ull 10J uOlllonddll sIS UIlP OllUlllUSl jO ISJYlY lou UO SS WWOaql SL61 61 laqwoolIJYll1lP lanai AS E

EE S l llPlIV AllWSI S II l AllPlIV llpllS slUawnxp asaql uo E961 laqwnN asual 1 Wd

JYllS Iaq sUOllnllSU S ISql M alUllploo lll uI ISAq JYlAoldwa aJqM unilaqpllq aq l1lql SlUawd qs lqil alj UlllxjO laqwnu II uo uOllllUawn opaql JYllaldwoo llpllS JW 6L61 Jllnullf AJllla pUll 8L61 JaqwlllQ al1ll uI JYllllII UJJal

SllM IS llllUaWAOldwa S llpllS JW 8L61 I JaqwlllQ lnoqll JO uo IEvE S l AllPIDV AllW l AllpllV lloqsoW JYlWJOpOO sl AJas JIll JOj ISmq pUllISAq JYllddns uOlllUJJOjlI uo JYlSllq slUawnxp lqil aJj UlllxaJlldaJd PlnoM

ANSd AqaJaqM lUawailullJJll Ull ANSd lIDO lOA MaN s lqil ald jOlailllullw qlUllJq pUll lqil ald lUI aSllS lqilald jO luap SlJd l A lloqsoWAUUO ql M JYlssn lS p llJnlUaA PUllWlV 8L61 JaqWlllQ AJllla uI OE

oilJlll OOAl pafoJdU Sls lllJlxIs pUll JaAlap Joop Olloop nJql ilU SnoqaJllM ilU pJllAJOj lqilaJj

IllUO l1lUJalU UOlllP lOSUOO Ulllx SlAJas ilU MOJlOJ aql JYllS I SluawaSl

JaApll aslql JO auO lSlll xIs llodxa pUll JapJllMJOJ lqil aJJ IllUO lllUJalU

Ull Sll JpSl JYlZ lapllJllql l qlqM U SlUaWaS lJaApll pallld IS JapJDM lOd

lJadd IfS PUlllSa3 G 3u dd IfS JO SUOlJYl6L61 n JaqwaAoN aql UI 6Z

I Z1 S S II l AllPIDV llpllS 6SIl AllPIDV llpllS sl AJas ilU pJllMJOj lqil aJJ UlllxUJJopoo Ol aJqll aqJailuol ou

PlnoM aq l1lql ISJYlY lou 1l11lS JW JYlpuoq lOU SIlM S l1lql JYluJllal illIAllH

S JOj puoq AlaJns II ilu llwqns SIlM pUll JYlnss pllq AUlldwoo ilu puoqII l1lql 8L61 IZ lsnilnv JYllllP Janal Aq sJapJllAJOd lqilpJd JO lIDO S UO S

S WWOaql Aq JYlY lOU uaaq pllq pUll puoq Mau II aJnllS Ol uallllapUn puoqS S JO UOlIlJl lUlllaql ilU MOJlOJ pllq llpllS JW S JOJ puoq AlaJns Mau II

JYlA lllJ lOU pllq UO SS WWOaqllllqlllpllS JW JYlY lou SJapJllAJod lqil aJd

JO lIDO S UO SS WWOaql JO APlUg AaJll8L61 JaqwaAoN allll uI 8Z

01Z JaqwnN aSUl1 Wd JYllS I 8L61 171 JaqopO pUll 8L61 I Alnf JYll1lP

OMl JaqlO aql aJqM 86171 JaqwnN asull Wd JYl JJlll 8L61 I JJdV JYllllpluawnxp auO JapJllMJoJ aql Sll JYlY luap SIlM IS ql qM uo ilU Plll JO sJlN

llJql aJaM Janal s dlJ qd JW ql M JYlpnpuI 86171 pUll OIZ sJaqwnN asull

Wd JO asn ilUIlW SllM IS l1lql JYllll l PU qlqM lUI saAJas pUlllllas

ilulunoo v anuaAall UOlllllodsUllJ sdlJ qd JJlll WOJj lanai II JYlA lllJ

SJapJllMJOd lqil aJd JO lIDO S UO SS WWOaql 8L61 EZ Jaqopo uO a

T ZZ S S lAllPIDV AllWISOl p lld Sllq l ailllJaOJq aql JO UJnlaJ aql JYlJn llS pllq JJallllql PllS Q

l lUllIlV S UO SS WWOaql JYlY lOU Jl UAS sW JaljllaJaql llM II U ql A

ISOl aJqllAlld Sllq lAq apllw Ullq pllq OO L69 JO lUnOWll aql U SlUaWAlld

ailllJaOJg SlUawd qs lqil aJJ UlllxJnOj UO ISOl ailllJaOJq p lld pllq JJal

l1lql 8L61 61 Jaqopo uo lIDO PllS Q llUllllV S UO SS WWOaql JYlY lOU

JJal lUI 0 d qswllalS JJal lUawlllldaQ lIDllJ Jl UAS a qdos 9

17 IN qx3 AllW IZS l AllPIDV

AllW P lld Ullq pllq IS Aq JYlssassll ailllJaOJq U 09 IOI Z aql JO auou

lllql JYlllllS UOSSOJJW 8L61 6 Jaqopo qilnoJql 8L61 6Z Jaqwaldas JYll1lPSlOAU aillllaOJq aAY pUll 8L61 IZ Jaqwaldas qilnoJql 8L61 E I Jaqwaldas

JYllllp ilU Plll JO sJlN X S panpoJd UOSSOJJW AllP ilU MOJlOJ aq Z

ro 1 1 1111 C UITIC IC r C I

tpayton
Typewritten Text
61
Page 76: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W fZZ

v 9E E S S S lAllPYJV hllW WelShS euoqdllelooYJo IllJlUOO 11 Il A SlIlll luoqdll ll plA OOlJlH SllhOldW I IS JlqlO IllJlA lS

hq pl dnllO WOOJ 11 U SliM JISlp S II1PUll H JW lllJlS JOlllH OV III llYJOs ISIII JIJOM Ol plnU lUOO lI1pUll H JW ANad hq plhOldw I qllnolJL OV

l AllPYJV lloqsoW 6E 9E S S Sl AllpYJV hllW 6L61 I AJllnJqed pllllp SliM ANad hq HlpUll H JW Ol plnSS

JIlIq l lSJY eq 6L61 AJllnUllf U eWlllwOS UOJhlld s ANSd uo pllllld SliM

lH SL61 I Jeqwlld lS llU IShq plhOldw Iueeq pllq UlpUll H ppo 6El AllPYJV lloqsoW 9E S S S l IlPYJV hllW UOJhlld

s ANSd uo pllllld lq llhOldw I IS 11 UlpUll H ppo lllql llJnlUlA JWOl plls lllllns lloqsoW JW lUlw lllullJJll lql lllllllllj Ol JlpJO uI SE

l AllPYJV lloqsoW UOllllnl S lql hjlllJ Ol pS wOJd llJnlUeA JW lUewlllullJJll plssn lliJp hlsnO AlJd

lql llIlU WJll Ol plU lllllJql pUllllJnlUlA JW pll llllUOO lloqsoW JW SlUlW

noop lqll lJj UllllO ou plJlld lJd lJOjlJ lql pllq pUll ISWOJj UOllllWJOjUouplA llQJ pllq ANSd IlJnlUlA JW ql M llu lllW slloqsoW JW OOU S LE

l AllPYJVlloqsoW E961 JeqwnN lSUOOn Wd jO lSn s IS llU PJlllleJ seun U IlJllllSWOJj pUll ulIIV JW WOJj SlIlll Jlqlo IllJlA lS plA OOlJ lloqsoW JW Jeqwnu

esuoolllu uJeAoll eql Sll plJlleddll E961 JeqwnN lSUOOn Wd pUll JepJllMJOjlqll lJj lql Sll plY lUlP SliM IS ql qM uo llUjplll jO mq 11 llU pJlllllJ ooYJOuOlsnoH s lqll lJd jO plJ nbu pllq hUlldwoo d qSWllllS Il lllql OOYJO olllll qs lqlllJd jO UlUV Jll ld hq plYllOU SUM lloqsoW JW AJllnUllf hlJlll UI 9E

9 l q qx3 hllWv S S l AllPYJV hllW lllJlS JOlllH OV III ooYJo sIS jO lUql S

pllS I Jlqwnu luoqdllJL OO L L I III e PPtl lllllUOO pllujI

UOllllloulql pljJJll lpUll JS llpllS V pJIlMPtI hq plull s SIlM ldllQJ JIoop lq Jeqwnu

OOUlJ ljlJ lJodxI IS 11 lJoq 05111 6L61 AJllnUllf Pllllp ldllQJ JIoop Il pUllSL61 S Jlqw lAoN pllllp llU Plll jO mq 11 slUewnoop qlOB Jlqwnu lSuoolllu uJlAoll lql Sll E961 JeqwnN lsuoon Wd pllS IpUll lUlllll llu pJIlMJOjlql Sll ISplY lUlP qlqM slulwnoop lqlllJj WllO OMl plU lllqo ooYJOlljJlS Q lIlUllllV S UO SS wwOlql AJ nbu llllJlldls 11 jO lSJnoo lql uI E

Jlqwnu

OOUlJ ljlJ lJodxe pUll plllqJ llll1 ISIl pljJJll l qlqM SL61 E I Jlqw lAoNpllllp OO OAUj lllIlJlJIOJq 11 plq lllllll sdU qd JW Ol JeqwnN lSUOOn WdllUjZJllln lUI SOO AJlS PUlll IllS WOJj lllIlJlJIOJq lllUOO Ol plldw lllll pllq

ISlllql llUjsOIlS P lUI oojAJlS pUlll lllS llUjlUnOOlV lnUlA IH UOlllllJodSUllJ sdll qd AJJlll WOJj 6L61 01 AJIlnUllf pllllp Jlll l1 PUOOlS 11 plA OOlJ

SJlPJIlMJOd lqll lJd jO llYJO S UO SS WWOlql SL61 I AJllnUllf uQ vEEE S l IlPYJV hllW 9S l AllPYJV UIlWIlSS ll S l AllPYJV

llJnlUIA SL61 JlqwOO lQ U IS jO JooYJo lluJAjlllnb lql Sll pllS lUI pUllJooYJo Ull lpllW Ullq pllq llJnlUlA JW JOOYJO llU hjlllnb MlU Sl Sll IShq Plll wqns eq PlnOM llJnlUIA PUIlWJV lllql Jellell1lql Uj plllllS SliM 1I UO llllJddll

S ISjO 11l UlP plPU llU lqllSllUOO OlllujJlllq Il pllUIlJll eq ISlllql pllS lnblJISJOj llSunO OOSnjllUOW fuqof 6L61 AJllnullf pllllp Jlll l1 ha EE

UllWIlSS II PJllqlH Ol jdoJIUlld JnqlJV SL61 61 JlqwOO lQ jO Jlll l1 lSuool

hr 1ftiICCTlATJATt IrATI I nnlTAI 11 1ln lJ

tpayton
Typewritten Text
62
Page 77: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W j zz

9 lKeplllV S AllG SlUlwd qs 0S30 uo ISAq plWJOjJOO SrJAIlS U pJllMJOJ 1q lJJ UllrJO JOJ AJlxlJ P IS p lld OJS3D 61

v E lAllPlllV S AllG IIlPUllM PPOlpUllllpllS pJllMP3 lJlI lZJlll lAl1S lllOlUlA PUllWlV ISJ 111 sllln

P A PU U MOlloJ lq1 q1 M 111llp OJS3D OJS3D WOJj Sl Jllq1q pJj UllrJO

JO 1UlWAlld plA xll pUll UO 11l1UlWn Qp 1q PlJ UllrJO 1111 plllld lld O lll

OJS3D lOJ rJllds O lllpllooq ll d lq1 01 O lll OS3D JO UO 11l11odSUlll1lq1 lOJ plUllllll OJS3D WOlJ SUO Pnl1SU u dd qs plA lxll ISJ 81

E 2 I l AllPlllV S AllG srJAIlS U PlllMlOJ 1q llJ UllrJO U P AOldAUlldwoo lq1lq 01 ISJ pll lP SUOOJS3D SlUlwd qs lSlq1 uO 8L61 AlllnullfrJU S SlUlwd qs 1q llJ UllrJO O Z llAO uo ISJ q1 M 111llp pllq OJS30 AUlld

woJ l1xl13111l lUl0 JO UO S A G 11 Aul1dwoJ Alddns l1xl13 111llU l0 Lvl AllPlllV 110qsoW vv l AllPlllV Al1W lWl S q1 111 pll1lU Wll1 OSll1 SllM

ISJ 11l1UlWAOldw l S IlpUll M lW 6L61 12 qll1W 1noqlllo uo lIlpull M PPOlpllg ANHoI rJlIo U l1W Slq llol WOlJ SUO pnl1SU q1 MrJUl1PlOO l1 UI 91

6 1 q qx3 AllW Ev l AllPlIV

AllW SlUlWn Qp lSlq1 uo pllllOOdll Sllqwnu rJU llljll llodxl pUll plllql lnllsISJ ANHoI pUll ISJ Aq pl1U lWnQp AIsnO Alld SlUlwd qs lSOq1lOj slood qs

01 SrJOAU sISJ JO sl doo prJnpold IPPUllM PPOl 6L61 6 qll1W uO v8 1N qx3 AllW lUl l1 gU PlllMlOJ lq1 slllqg llol pl1S l110qsoW

AUUOl Aq ll Plll pllddns gU Pl1l JO mq lWllS lq1 JO UO SllA 1nxll V llqwnu

lsurJ 1 gU UllAOg lq1 Sll E961 oN lsurJlJWoI pUll 1Ulgll gU PlllMlOJ lq1Sll ISJ pl1S I 8L61 22 llqW rJlG pl1llp gU Plll JO smq lq1 JO lUO SlllqS flOM

pUll SlUlWn Qp ll1lnsuoo Sld xll pop SUO llllllplp llodxl gU Plll JO smqlllM IIlPUl1 M lW Aq prJnpold SlUlWn Qp lq1 guowy SlUlWn Qp pllddns pllq

110qsoW lW q qM lOJ SlUlwd qs lOOJ lq1 uo Sly S q prJnpold IPPUllM lWMl AIl1U lq1 JO uo snpuoo lq1lY lllllS lOplM 01 111 rJlIO sISJ 11l1llpull M

PPOl PUl111lO1UlA PUllWlV plM l AIllU AllW lW 6L61 9 qlllW uO 11L 1N qx3 AllW OE 62 l AllPlIV AllW 6L61 a AlllnUllf qgnOJq1

8L61 n llqW xlG pl1llp lllM gU Plll jO smq lql llqwnu rJU lJlj lJ llodxl

ISJ 11 lS 1 01 pllllOOdll OSlll SrJ OAU lglllllOlq lq1 JO OMl SlUlWn Qp lSlq1 uo

pllllOOdll sllqwnu rJU lllJ ll llodxl slqg llol pUll sISJ qlOH llqwnu lsurJ 1gU UllAOg lq1 Sll E961 llqwnN lsurJlJWoI pl1S I pUll lUlgll gU PlllMlOJ

lq1 Sll 1qg llol ply lUlP 110qsoW lW Aq prJnpold gU Plll JO smq lqlEV62 a lAllPlllV AllW lllllS lOlxlM 01 111 lIlpull M

PPOlAq plU lllU llW lllM SlUlwd qs lq1 01 gUlUlllllOO SlUlWn Qp Jlq10 lI11l1lq1

pl1ll1S 110qsoW JW AUlldwoo d qSWlll1S lq1 01rJOAU lgllJllOJq s ANHoI pUllgU Plll JO mq UllrJO lq1 JO Adoo 11 AIUO plU lllUOO llploJ q1l3 ISJ lOJ pllPUl1q

Alplg lllll pllq ANHoI lUlwd qs 1qgplJ UllrJO lq1 JO lOOJ uo SllY s ANHoIprJnpOld 110qsoW lW Ml AIl1U l1lq1 JO uo snpuoo lq1lY 6L61 qlllW UO AllM

pllOlH 92 11l llIo s ANHoI1ll110qsoW lW plM l AIl1U Al1W V qdlSOf 219E 82 l AllPlIV AllW ISJ lOJ SlUlwd qs qns lAY

AIUO plIPUllq pllq ANHoI qlllW APlll qgnolq11llq1ll Plllpl11l1S 110qsoW lW

ANHoI JO llAOldW l Ull Sll qlUOW lOO SlUlwd qs 1qg llj UllrJO UllUY 01

Ul1 plIPUllq lq 11lq1 pl1ll1S lIlpull M lW rJllds OgJllJO gUfooq lq1 pUll SlUlW

nQp 1qg llJ UllrJO JO UOlllllld lld lq1 plpnpu Sllnp S IlpUll M lW Iv

tpayton
Typewritten Text
63
Page 78: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

I rd ZZ

llll lJlldlUOlIlJlXi U SOllllS q1 t8 fi s n9t 9161 PY llu ddlS OljO ll tt UOJPlS

SQllIOU lIUlPJUMJoJ J8uoonun III1IlJl1ulIuQ q 9161 jOV lIuJdd qS BltUO OQS pclIU O SBq lBUO IUWOIUI SUlQISAs ollJuJQqlQqh

s JllII WJOlOp lq Ol onSS lUIJ Ol UO SS WWOOl Aq plJopJO sy

NOISSnSIa

l q1X3 snqJOlCl OO L Ltt

tit OuodO Ol 90001 JJOA MON JJOA MON 6t81 Ol ns lllJlS JOlKIlI

0 3 III lJO lZJll JW JO llJnluoA JW 01 pllKIJ P SliM SlUowd s lSl l

llU PJlllloJ lOuopuodSlJJOO IV 51Uowd s s 3Ad llUlPUll JOj o q suodslJ

lq p noMoUlllllld uoD pUll OJO lZJ uodllS llJnlUOA PUllWJY llllpllllO PUJOlJnj JOnO Ol OAoqll Ol plJJOjOJ JOpJO lSllOJnd Ol 01 pllll QJ llUOll

llUJOlUI WOlSAS OllJllAq OpllW quoWl WWOO pUll llUOllllUJllUI SWllsAS

OllJlljO Allq suodSlJpUll Slll qlll 1111 plwnSSll 3 UOllllJodJOlJodX3OllJlljO lUOP SOJd oUlllllld ouo 6L61 OE OJllW pllllp JonO AS

8 1fl Y 51 q Xt snqKIa Joqwnu lOUlJOjOJ lJodxo pUll PllOJlllO IS 11 pljJJllO 6L61 91 OJllW

llnoJl 6L61 L OJllW pllllp llU pll jO smq lSOlllUjAUlldwOOOll SlO OAU oll

UOllUJodJo lIJQUI JQI qyJQjHOJOSIUdy 1I11lflJUMJOd BY

IUUO IUUJQIUI SWOlshS olIJUOJO lZJll UodllS Aq plull s UO llllOU 1l1lM01I0j Ol lJoq 1l1lPll

jO smq Ol jO UO ulqwnu lOUOJOjlJ lJodxo ISpUll E961 JoqwnN lSUlOn

Wd plJJllO ISAq pl PUllll onzouoA Ol SlUowd s l ll oJj UlllOO 3AdllJ l Ol llu lUlSlJdoJ 6L61 n OJllW llnOJIl6L61 tt AJllmqod pllllpllU pll jO smq ollplSllO OJ pUll AplllJ UOM lljJOlllwluowd nbtllKlfoJd

1111 jO llU PJllMJOj ldwOJd pUll UO lllllpJOOO JOj oq suodSlJ AIIOM JOPJllMJOdSll Ol plJJOjOJ IS P O 3Ad lOllJlUOO Ol jO SWJOl Ol JOpUn t

L fi l AllPYJV snq Q JOpJllMJOj l ll oJj UlllOO 1OOpulXioplIplSU lOlll lOU SliM IS llll OJllMll OWllOlq 3Ad UOM plIl lOUllO SllM lUOWllJllll oll6L61 E IJdy uo IS lM lUOWllJllll 51 pllllU WJOl 3Ad E

9 tUl llPWY snqJOlCl ISOl 3Ad Aq AIPlJ P OpllW OJOM 51Uowd s lSl1l

uo plWJojJlXi SlO AJlS 1l1l PJllMJOj l ll oJj UlllOO JOj 51UOwAlld IIY 51Uowd s

s 3AdJOj lOllds OllJllO plJooq pUll UO lllluownoop l ll lJj UlllOO AJllSSlOlU

fill plJlldoJd IS SlO AJlS llU pJllMJOj lilJj UlllOO 1lll WJojJld JOj olq suodSlJ

AlJlld Ol oq 01 ISplJOP SUOO 3Ad 1OOwd s OAOqll OllluPJllllolI tE fi fi l llpYJV snq

KIa lUOwllJllll S l JOpun 3Ad JOj 51Uowd s lqll lJj U8000llJql plIPUllqIS ll OnZOUoA JOj punoq 51uowdlslKlfOJd 3Ad UO SlO AJlS 1l1l PJllMJOj

l ll oJj UllOOO WJojJlXi Ol pllJllll IS AqlJO M 6L61 Et AJllnUllf uo IS lJMlUOwllJllll Ull01O PlJOlUO 3Ad UO lllJodJOAllJOU3 JOllAJOlSOd I

JOPJllMJOj lqllJlJj plSU lOlll Sll snlllls s IS 01 Sll

uo snjuoo jO lsnllOlq 6L61 AJllmqod II IS lJM llullllpplSlllO OS3D O

tpayton
Typewritten Text
64
Page 79: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

n zz

d qs q lnS UO Sl1lOlq lYlllOO q P P IOU sU wd qs lqS OI UllYlO SU PlllMJOj JOj SJOOd ljs WOJj SlUlw ud lA lOlJ lOU P P upuS JW Jlljpnd paUllOpOO

jJOM jO llullnb lljl 01 3U pJXX1l JllA 10U P P lJOjlJ lljl pUll lUnOwll paU W

JlppaJd II jO SllM llpllS JW q paA lOlJ AJll llS l1j1 Jll llS AjyM II paA lOlJ

llpllS JW lUlpUodS lM jO yAO dWl Ull sy SL61 I JlqW lOlO lnoqll JO UO

llpllS JW l3JllljlS P 01 AlpOljlnll Sl palllJ1SUOWlP PUlll JOj SlO AJlS 3U pJllMJOjllj3lJj UlllOO WJOpOO 01 llpllS JW pa3ll3ul lUlpuods lM SL61 I AllW uOyAO dw3 pUll JlAO dw3 JO lUllAJlS pUll JllSllW jO lUO SllM d ljSUOllll lJ Jpljll1lljl uo snpuolljl spoddns pJOllJ lljl JS llpllS Y pJllMpg PUlllUlpuods lMUY Mllq pllS Xl 1jlljM d ljSUOlll lJ lljl 01 lAOqllplu Ilno IIpll Jlllj13u A ddy

9960 IvS S 1 SE piJ UiJp l iJ J 0 vv EvPL d 19Edo tf ddns iJpunV I lliJlOa 6960 aOI S 1 E6E piJ UiJp l iJ S961

J pO Ev6 Iv6 PL d 96E tfuvdwofiu pviJH I o oqv EL61 J IjlSOLLI 91n PL 01 vLv ViJa I Pl7 tfuvdwoiJJUvmm VIS iJ fivg YS

lUllAJlS lljl 01 JllSllW lljl Aq lpllW lUlWAlld jO S Sllq pUll JlUUllW Pllj lljl 9pUll JllSllW lljl q U pl3ll3u l AUllWJOU

SSlu snq lljl PUlllUllAJlS lljl Aq paUllOpOO jJOM lljl UYMlaq uOlllUUO l lljllUllAJlS

pUll JllSllW lljl Aq OlU paJllU l d ljsUO lllJlJ lljl jO lwl pUll uOlllmp lljl vpaWJOpOO S jJOM lljl 1jlljM U lll d lljl pUll plWJOpOO

S jJOM lljl 1jlljM Ijl M Sl lllllU lWnJlSU lljl jO JllSllW lljl Aq UO s AOJd lljl ElUllAJlS lljl l3JllljlS P pUll l3ll3ul 01 JllSllW lljl jO AlpOljlnll lljl Z

plWJOpOO S jJOM l1lljl 1jlljM U JlUUllW lljl pUll jJOM SlUllAJ lS

lljl jO lml1lU lljlIOJ1UOpUll plJ P 01 Alpoljlnll S JllSllW lljl jO lUllX l lljl I

lJll plJ lp suolq 01 SJOpllj d ljSUOlllJ lJ lljl 3U U Ullll lP uIlUllAJlS pUll JllSllW jO lllljl SllM llpllS JW

PUlllUlpuods lM UY Mllq palS Xl 1jlljM d ljsuo l1lJlJ lll JlAOldw lS llpllS JWAJll lp SllM lUlpuods lM 1S JOj SlUl llpUll 03Jlll jO UO 11l1llOS lljl 01 pll wI

lOu SllM d ljSUOllll lJ lljl U l OJ Illnpll S lUlpuods lM l1lljl SllllA lJ pJOllJ l1j1palS Xl AUll

nllll lllljl d ljsUO l1lllJ lljl SllM lllljM lU Ullll lP 01 lJOjlJ lljl AJllSSlOlU S 1IJlpJllMJOj llj3 lJj UlllOO lUlPUOO lPU Ull Sll llllJOOO lOU P P l

lllljl lJOjlJ lljl slpnpuo lUlpuods lM UllWSllllS UO SS WWOII Sll AIlIOS paPlll l1lljl SlJlSSll lUlpUodS lM d ljSUOllll lJ Alu lllll Ull jO l UllS Xl lljllOj llu nlllVJS llpllS y plllMpg 1lP 0qj101S l OS PUlllUlP slJd Sl pUll 1S lUI AUlld

WO3U PllJ1 llpllS 10j SlUlP pUll 03J1ll jO UOllll llOS lljl 01 pll Ul SllM lUlWlA OAU Sl l1lljl JlA lMOIj lnlllll soop lUlpuods lM Sl AJlS lSlljl llU A ddns U

paA OAU A ll llPU lSlll 11l SllM l l1lljl AUlP lUlpuods lM soop JlllllW lllljl JOj

JON UO lSlnb U popoo lljl llupnp Sl AJlS 3U pJllMJOj llj3pJj UlllOOplWJOjJOO JS llpllS Y pJllMpg lllljl uOl1l3 lUll lljl llnds p 10U soop lUlpuods lM

SlUlwd ljs Ijlns OllUlP lU Sl llllUllOjlljl 3UlPUlllj pUll SJlpJll l UOWWO3u 03ulllOO Aq SJlljlO jO j llljlq UO

UOSJOO AUll Aq SlUlwd ljs jO 3u ljllllds p lljl Sll 3UpJllMJOj jO sSlu snq

lljl uo 3U Alllll SluY lp IOS S 19V 9161 PY 3u dd ljS lljljO I uOlllS

S lIfsnq lIOns U lMlu 01 UOfSSfWWOWIPUW fUJ P ql Aq p nss OSUolH UsPloq UOSJOO

qons S fun jOy sfqlllf poUY p su llUfPJUMJoJJO ssoufsnq qluo llu AJJUO U llullu Iluqs UOSJOO ON

tpayton
Typewritten Text
65
Page 80: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W ZZ

q qM SlUlwd qs lqll lJJ UIlllO llU lUlSlJd lJ llU PIlI JO sma JIllqlq S lUlpuods

lM uo paJlldlJd SlUlWnOOp lqlllJJ UIlllO JO SlUllUOO lql wOJJ lUlJllddll S

Sl AJlS llu pJIlMJOJ lqll lJJ UIlllO llUjUJJopoo JOJ llq suodSIlJ lJlld lql aq Oll

JlP SUOO Plnoqs SJljJJIl pUll SJOOdjqS lllql UO lUllU S lUlpuodS lM SUM l lllUSJlll lIIIlUjll JO lql JO lUlIlsqns lql

qlM lUllS SUOOU lJlI lql paMOIIOJ llu pJlIMJOJ lqll lJJ UlIllO plSU l1un U llu

llll11Ul SIlM lUlpuodS lM lllql ldUIJ OllUllUj ulIllU Ulp UO lllUllldXlJO SJlllllI

llqA AJlsnpUj lql Ol Jaq1l1 Sjq1 JO WS1l1UO SSlJOJd llnqjJlUOO lUlpuodS lMlAlIq Ol palqll1lp SliMl lllql pappll lUjJlIW pUll l1 lUOOJlW l1qM Jlq 1l1Sjq1JO AJlSnpU Jno Uj SJlpJIlMJOJ lqll lJJ lAlIq 01 plSlI lld SUM l lllql palOU JlqlJnJ

U lIJllll5 JlWOlsro panlllA 11 SlI lUlpuodS lM Ol paJJlJ lJ UI lUjJIlW pUll

ll lUOOJlW pUll SlUj U lIJllll5 WOJJ SJlll lI lU AJlSnpU llu pJlIMJoJ lqll lJJU1IllO lql Uj lUlld lJlId lAlllI UlI lq Ol SJljJJlI pUll SJood qs q paJlP SUOO

SliM pUll lno J1lSl llUjPloq SliM lUlpuodS lM lllql lSlllllns 08111 UOllOO1ddll Sl

qllM uo punfuoo U lUlpuodS lM q plll wqnsl UlJ lJlJ JO SJlll lI lq1 JO OM

SlllJllq lqll lJJ UIlllO llU PlllOO

JOJ pUll UO llllUlWnOOp lqll lJJ UlIllO llUjJlIdlJd JOJ llIds ollJlIJO lluPlooq JOJJl d lq1 Ol ollJIlJO UOlllllJodSUIlJ1 lq1 JOJ llu llUlIJJIl SUO pnJlSU llu dd qs JO

llUjAllJ lql JOJ US lOU lUlpuodS lM Ol paOOI OS3D Sl jAJlS llu pJlIMJOJlqll lJJ UIlllO 1111 UJJOJJOO Ol lUlpuodS lM UO pl1lJ OS3D sllu1l1 lp lSlql JOlsmoo lql UI UOllSlnb U POjJOO lqllnoqllnOJq1 S SlIq JlIlnlllJ Il uo lUlpuodS lMql M lllllP OS3D ulIdwoIddns JPl13 11IJlU lD JlPJlIMJOJ 1qll lJJU1IllO lql SIl palpulIq l SlUlwd qs lqll lJJ UlIllO asoqM SJood qs lql q paJl

P SUOO SIlM lUlpuodS lM S AlIO 3 UOlSU A JO l AlIPYJIl lql q Ulp AlsyllpllS JW

q paUJJoJJOO Sl jAJlS llu pJlIMJoJ 1qll lJJ UlIllO lql llu pAOJd JOJ lJq suodslJ

lJlId lq1 Sll 1no J1lS1 PIlq AIlUIlJllddll lUllpuodsllM JlqlJnd qns Sll JlIlSW qpalUIlSlJd lJ SAllMlll llpllS JW SJlljJJIlpUll SJood qs q1 M llu1ll lp pl1 UIJI S q

UI lUllpuodslM JOllAOldw lUIllnq SIlM JS llpllS y pJllMP3 lUllllll11ul1osSIl paAJlS 1 lllql SlnllJIl lUllpuodSlM WOqM JOJ Illd ujJd Ilq1llu llq WOJJ Jlld

ullaqqjJlllql JOJ punoq SlUlwd qs lUlnOOJJUjuo AIUO uOllunJ S ql UJJOpOO 01 IlpllS JW pallJ P lUllpuodsllM SJllpJIlMJoJ lqll lJJ UIllO JO l1q suodSlJ paldl1l UIl S lllds ollJIlJO lluPlooq lql

qllnoqllY lUlpuodS lM Aq pIlIPUllq SlUllwd qs 1qll IlJJ UIlllO UO UO llllUIlWnoopAJIlSSllU IIIl lJlldllJd Ol pIlllJ P SliM IlpllS JW lUllPuodSIlM Aq paU WJIl1Ilp

lJIlM Slllnp S llpllS JW lllJ1S JOllM Ot III lluPlJOM l1q U lJlql pIl1llOOISlIl lIlJ lql JlZlln pUll JO MlN JO MlN lllJlS JOllM Ot III lYJOS lUlpuodS lM III paJOM IlpllS JW lUlW Oldwll S q JO lsmoo Ilq1 llU JnO

Sl AJlS llu pJIlMJOJlqll lJJ IIlUO lIlUJl1U JO llu p AOJd lql SSlU snq JlllnllllJ S lUllpuodsllM Ol pa11l1llJ IIllIlUIJlU

lJIlM Slllnp S llpllS JW lUO paPUllX l UIl lq PlnOM IlpllS JW ql M UO lll

p08SIl Sl lIlql plllld IlUll lUlpuodS lM SUO lIlJOOO lJnlnJ Sl JO lJlld IIlJlllllUUIl SIl lUlpuodS lM q paJlP SUOO SUM IlpllS JW JlYJO llu J1llnb S lUlpuods

lM sy JlYJO llUjAJlllnb S lUllpuodSlM SIl lAJlS Ol lnq Sl AJlS llu pJIlMJOJlqll lJJ UIlllO WJOpOO 01 AIUO lOU lUlpuodS lM q paOldwll SIlM IlpllS JW

SJljJJll pUll SJood qs qloq WOJJ Sl UOW paA lAllq

AIIIlUJJOU PlnoM JlpJIlMJOJ lqll lJJ Ullaoo lUlPUOO lPU uY SJlljJJIlWOJJ SlUlW

tpayton
Typewritten Text
66
Page 81: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

nLIU

JnpxoJd llU SU Ill qSlqlllS UO SS WWOql l Joqlnll lllql OllUllnSJndql178 s n 917 jiU pJlMIOj jO ss u snq q1 uo AIJl J 01 lJql pUll jiUJJ M lYlq 01 punOj 1 SlUl Jlddl 01 SlSU 1 J pJllMJOj lqll lJj UllOOO lU pUOOlpU nssPInoqs uo ss wwoW lJllW IllJlp ll qlWql SS JlluojO lU lU ql SllM n

J pJllMJOj lqllpJj UllOOO Ull Sll lno jPS1ppq Jlljll lJlql lU puodslM OIZ J qwnN lsu 1 WI jiU zIln SlU wd qslqll Jj UllOOO llU pJllMJOj ulllllq Jlljll lJlql I W plWW pUll slU wnOp lqli JjUllOOO Jlld Jd OlllpllS JW plJ q lU puods M JS llpllS V pJllMP3 J PIoqlOlS

IoS pUll lU P s Jd Sl pUll lS q ppq SllM OIZ JlqwnN SU l1 WIlU puods M jO soql Jll lU woIdw J ql jO SJnOO

ql liuJnp lU puodslM jO oIdw JlqlO ql pUll llpllS JW q U pllllllluSl l A Pll ql J pJllMIOj lqlipJj UllOOO Ull jO ss u snq ql uo liU Ulll SllM

lU puodslM pllillliu l l plS JW pUll lUlpuod M qlqM U d qSUOlllpJ WlW

AoIdw lql jO lqllIuI AoIdw pUll Jl oIdw jO Wql SllM JS llpllS V pJllMP3 pUll lU puods M Aq OW plJ llU d qsUOlllI J ql uo snpuoo JllJlUOO 11

slJoddns pJ J ql J pJllMJOj lqlipJj UllOOO Ull Sll uOllunj lOU P P JOJlJ qlpUll lS JOj lu llll llullIos 11 Sll APIoS pll llll Wql SlJ SSll W puod M

J pJllMIOj lqli Jj UllOOO ql Sll plZ JlPllJllq l S lU puods MlIIl SJl JJlllpUll SJood qs 01 S OAU pUll liU PllI jO sIIq UlOOO uO AJllJ1UOOql 01 nllJll JIllq q S lUlpuods M uo plJlld Jd Slu wnOG J pJllMIOJ lqll JJ

UllOOO lU pUOOlpU Ull Sll lno jPS1 ppq J A U l Wql SpU lUOO lU puodslMJ1SnpU liU pJllMIOj lqli Jj UllOOO ql U lA Pll lq

OlW puod M plA JOO SJ JJlllWql lllll PU jpSl lU puods M Aq pln wqnsUlJ lJlJ jO SJ nlI OMl SlU wd qs lqli lJj UlOOO Sl liU pJllMIOj JOj lJq suodslJ

lJlld ql q OlWlpuods lM plJ lP SUOO lU Il Jood qs Ill lUlllsqns II OS3DAJllJ1UOO lql 01 S U P A lql JlpJllM IOj lqlipJj UlOOO Ull lq 01 l plJ l

P SUOO SJood qs JOU SJl JJlll Jlql lU Wql W wnllJll Jql SJlllW WJpuods JMPV Jql jO I UO llJS Aq pluY Jp Sll liU pJllMIOj

jO sSJu snq Jql uo liUAUll l Sll lno jI Sl liu PIoq SllM lUJpuods JM Wql UO S

npuoo ql ql M W lS SUOO JJll pUll JlIll SJl JJlll pUll SJood qs llUOWll JJpJllM

JOj lqli Jj 11 Sll JWllU s WJpuods JM JlOWOJd 01 pluli s p JJM SluJW JS lJJAPll

qlns AIJlllIJ SIllUJno pllJl U lno UJll l sluJW JS lJJAPll U lSIll xIs lJodxJ

pUll JJpJl MIOj lqli JJj IlUO WUJJlU Ul Sll jpSl plZlJ JPlJlqJ lUJpuods JMWJpuod M 01 nlJJ p SlUJW lld J Jql JpllW lUJpuods

JM q OAUl JJJM OqM SJJJJll pUll SJood qs qlOq nulllJodw JJOWnul SWJ1SAS OliJllJJpJllM IOllqlipJ I 01 plJJ Jj J JJl UO llJIIOO liU pJllli J

suols Jnb IIV Jlloodll Jlqwnu JuoqdJI l pUll SSJJppll s W puodsJM ql qM JJpun

Q lVIJOIIVI Jll 1J1 Wl A Ol lV

SM3G MVMMO l lHDI3M IIVNOIlVN M3lNIIVNOILVN M3lNI SW3lSAS ODMV

liU PllJq ql JJlll OAU JsJq l J pJllMIOj lqli JjUllOOO Illflllll ql sllWJpuod M llJlJod OlW lU Jl I 11 UJp AJ SJJ JJlll01 Jllll

JJlOJq pUll SJood qs 01 sJliJl ql liU pJllMIOj lqli JJj UllOOO liU SSJSSll S OAUIslu wnOp s ql uo Jlqwnu su I llUlUJMOll Jql Sll

pllS I IqllJllAUl S OIZ JlqwnN su 1 WIII M Sll JJlJodx J Jood qs Jql Sll

u ljo pUll W lill llU pJllMIOj ql Sll lU puods M lllUg S P plIPullq lu puodsJM

tpayton
Typewritten Text
67
mharris
Typewritten Text
Page 82: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J lol ZZ

pljpUllq IIQPUll JW SlUQwd qs

lqllQJj UllQOO Qql jO QlllllUYlJad Jlll wjll hjUO jO QJllMllQq 01 plWQQS pUll 01

llU UjlllJad SQjY puq ANad X OAU QllllJQJjOJq II pUllllU Pllj jO lIq UllQOO Oql jOhdoo II hjUO plU lllUOO 1I0pUll JW hq plpJllMJOj SlUOWd qS UO SQjY S ANad

lUQPUodSQ hq plUll SS1l SJaqwnu YlUQJQjQJ lJodxo pljJJllO SQjY QSQql U SlUQwnooP IIV YlYJo S lUOpuodso

III W q hq plpJllMJOj SlUQwd qs lql QJj UllQOO llU lUQSQJdQJ SQjY Q1QjdWOO Oql

plU lllUjllW IIQPUll JW YlYJo S lUQPuodSQ III JjJOM 01 plnu lUoo IIQPUll JW

ANad hq plhOjdWQ hIlTl OYJO qllnoll1I0JhTld s ANad uo IIQPUll ppo SQQ

hojdWQ Sl jO QUOpYllljd lUQPuodSQ ANad WOJj SlSQlOJd jO ld QOQJ uodOlUQPUodSQlI hq plhOjdWQ QlqM W q hq pajpUllq

SlUQwd qs uo sSQOOJd UOlllllUQWnOOp QqlllUjlOjdWOO U E96j JaqwnN osuaonJWd ozllln 01 6L6j hJTlnUllC hjJTlQ pUll 8L6j JQqwrYolQ Qlllj Uj JS llPllSV pJllMP3 pll laJP hjlUQJllddll lUOpuodSQ JQqlJnd 8L6j 8Z JQqWQAON

Sll hjJllQ Sll palllp SlUOwnOOp lqll QJj UllQOO uo JQqlQllOl paJlladdll E96j JoqwnNQSUYln JWdPUll lUQllll llU pJllMJOj Sll QWllU S UQPUodSO SSQjQqlJQAQN

8L61 jO JQqWQOQQ JO JQqWQAON U lUOpuodso JOj SlUQWnOOp lqll QJj UllQOO

hUll QJlldQJd 10U PIP ANad l llPYJV S ljoqsoW hUUO hq pYlUQP AQ sV SlUlW

d qs lqllQJj UllQOO pJllMJOj 01 E961 JQqwnN QSUYln JWd QSUYll JOpJllM

JOj lqllQJj UllQOO1UQPuadQPU s lqll QJd ozlln 01 paplQOOJd lUQPUodSQYl AJQS S ql JOj

lUQPUodSQ mq pUll lUQPUodSQ hq pllddns UOllllUUOjU uo paSllq SlUQWUOOPlqll QJj UllQOO QJ1ldQJd pjnOM ANad lUQWollullJJll Sjql ql M YlUllpJOOOll UI

lUQPUodSQ JOj SlUOWd qs lqll OJj UllQOO OjpU1lq pjnOM ANad YlYJO qOU1lJqJjJOA MQN S lqll QJd hqQJOqM lqlllQJd qllM lUQWQllU1lJJ1l Ull pas5noSJP 1lJnlUQA

pU1lWJV JaoYJO llUjhjJllnb lUQJJnO S lUQPuodSQ 8L6j JQqwrYolQ hjJ1lQ uI

saoAJQS llUlPJllMJOj lqllQJj U1lQOO uuopad 01 plnulluOO lUQPuodSQ JQlJ1lQJQqlhjQl1l plWWI 8L6j JoqwrYolQ U JS 1lp1lS V pJUMP3 jO QJnlJ1ldop Qql qllA

QSllYl 10U PIP SOIllOll llUjPJllMJOj lqll QJj U1lQOO pasuaolun S lUQPuodsoQSUYllll lnoql M llUjPJllMJOj jO sSQU snq

Qql UO llUjhJJllO jO hllnll Qq 1I1S PjnoM lUQPuodsQ po Jad S qllnoqllnoJql P1llAUQQq pllq QSUYll s J S jI lUllAQjQJJ QJOjQJQql S QSUYll s J S jO UOllllOOAlIQql jO plYlloU SllM lUQPuodsQ UQqM jO UO lSQnb Qq SlUQwd qs lqll QJjU1lQOO PJllMJOj 01 QSUYll s J S llufZIln u1l11Qq JQlj1lQJQql pUll 8L6j I h1lWUO llpllS JW plJ q l UQqM lUQPuodso hq Jlllll l U SllM hl101l llU pJllMJOjlqlllOJj UllQOO pasuYl1un oqll1lql JOAOMOq Sj1lQAOJ pJOOQJ oll QSUYllJOpJ1lMJOj lqll QJj U1lQOO lUQPuadQPU s J S jO 8L61 8 Qunc QA lOQlIQ UOllllOOAQJ

Qql qllA u1l11Qq uOlsonb U hlIAlolllluIPJ1lMJOj lqlllOJj U1lQOO pQBulIun oq1l1lqluOldwnss1l Qql uo plpunoj S uOlsod QJ 1OO S lUQPuodso lOllj UI J S ql M

UOlll OOSSll Sl jO SjSllq Qql uo hjOjOS pClZ J1luad llu Qq S lUQPuodso pUll SYlAJOS

llU PJllMJOj lq8lOJj U1lQOO Qql 8Ujuuopad SllM J S lllql s mllJll lUQPuodsQllpllS JW hq padnp SllM l 11lql llallQ U llU W lljJ JS llpllS V PJllMP3

jO SJopjnoqs oql 0100 UOl101l Sll JOj hllq suodsoJ lJlqs 10UUllO lUQPuodsQ8U pJllMJOj lq8lQJj UllQOO U Q8ll11uQ 01 JQqwnu QSUYll

S q 8u Zllln pUll QQSUYll II 8ujJ q hq SSOOOJd S ql pllUQAwnOJjo lUQPUodSO01S dJ 917 UO SSlwwoJ Qql hq plUQQJOs Qq pjnOM SlUllOnddll hqQJQqM

t m WWlY w w m1 QU

tpayton
Typewritten Text
68
Page 83: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

n fj ZZ

SlUlwd qs 1qll lJj UllOOO Sl llUpJllMJOj JOj Iq suodSlJ AlJlld lq1 Jq OllUlpUodS IH plJ lP SUoo AJllllfO 3AoI

plllqJ llllj S lUlpuods IH lJoq 3AoI 01 plll wqns SOCl OAU UOlPPll uI

UO lIlJodJOAllJlU3 JljllqAJllSO ol JOol SlUllly ilU pJllMJOol SV

jllUOlIlUJ llUI SWllSAS OilJll

PllJlUoo S ql ql M OClUllpJoYlll U plpJllA JOj lUlwd qs lYlfOJd1l JOj lUlpUodS IH Aq plJlld lJd llU pllj jO IIN Ull000 Ull UO plJll00dll UO llllOUilU MOIIOj lql JlpJllA JOj lqil lJj UllOOO lql Sll lUlpUodS lH Ol plYHU lP PllJlUOO lllql ilulu lSlJd lJ JlpJO lSllqOJnd lql lljlnz lUlA Ol SlUlwd qs lYlfOJd

3AoIUO SOCl AJlS ilU pJllMJOj lqil lJj Ull000 WJOjJOO Ol 3AoI UOlllJodJO AilJlU3 JljllqA JllSO ol ql M lwllU UMO Sl U pllOllJlUoo lUlpUodS IHlUlilll ilU pJllMJOj Sl lq Ol lUlpUodS IH plA OClJOO SAllMjll OS3D lUlpuods

lH qlM SilUlllp jO lsmoo Sl U lilUllqo OU pll Ylllp AJlUlJllddll OS3D6L61 AJllll pUll 8L61 llllj UI SlUlwd qs lqil lJj UllOOO J lql ilU pJllAJOj JOjljq SUodSlJ AlJlld lql lq OllUlpuods IH plJ lP SUoo SlUl fO JOOd qs S lUlpuods IHsnq YlQ f 1UllJoIpUll S AllQ 3 UOlSUA jO Sl AllPIJY lql Aq pOClUlP AIsy

lUlpuods IH Ol AJlYlJ P SlUlwAlld lpllW AlIllJnl1lU SOCl AJlS ilu pJllAJOj lqillJj Ull000 JOjSOCl OAU lSlql AqplSS lSSll SJood qS 6L61 qOJllW qilnoJql pll1lp sJood qs Ol SOCl OAU UO plJlloodll

plllqJ llllj S lUlpuods IH lUlilll ilu pJllAJOj lql Sll lUlpuods IH plllluil Slp lnq961 JlqwnN lSUOCll WoIpllS 8L61 jO JJqW lYlQ pUll JJqW lAON U plnsS

ilU Pllj jO slIq UllOClO JlpJllA JOj lqil lJj UllOOO Ull Sll lno JjlSl Pjoq Ol plnuHuoo lUlpuods IH 961 JlqwnN lSUOCll WoIOl S ll plJn Yls ilU AllH

lUlpuods IHAq plpJllA JOj SlUlwd qs lqil lJj Ull000 UO lilllJlloJq pll Yllloo ANIH pUllJJqwnu lSUOCls UH lZln Ol plMOllll SIlM lUlpuodS lH 110 lpllJlllpllllnl Yl lJI

UH pUll lUlpuods IH llAojdw l ANIH Ull Sll jppUllH JW llUlIlUll SlP

Aa VlUJOf OJd Apmd SllM jPPUllH JW jO lUlWAOjdw I s ANaol lqil lJoIJOj lUlilll Ull Sll pllOlllU lpuodsIH lllqllUlwnilJll S lUlpuods IH llnjlJ JlAojdw Ilql Aq hJlljllS sllAojdw Ilql jO lUlWAlld lql iluJJllq d qsUO lllPJ lUlwAOjdw IUll jO OClUllS XI lql ilU U Ullll lP U Ol plJJ ljlJ AIIIlUllOU llJ llJO lql jO IIY1I0JAlld Sl UO llqM plpJllA JOj II1PUll H JW SlUlwd qs lqil lJj Ull000 lql jOJlqwnu lllJlljll jO lJllMll UlA lWU AJlulJllddll SIlM ANaol UO lYllP PUlljOJlUooslu lpuodsIH ollYlfqns plU IlWlJ jPPUllH JW JlA lMOq OClulllJodUJ lSOWlJOj

jO lU luoqdlj ll JO 0ClIJ0 llllJlldls 1l ql M UJq lp AOJd Ol Jlqwq UlA I lOU

PIP lUlpuods IH UpJlql pllll00j SI llOllj lql plZ lln pUll 0ClIJ0 slu lpuodsIHIII pllJOM II1PUll H JW 1I0JAlld S ANaol uo SllM lq POJoo lql lnoqllnOJql

lUlpuods IH jO llAojdw lUll Sll U plilllilu I lq lllql llAojdwI

ANaolUll Sll

SI lnp lwllS lql Ajls YlJd llU UllOjJOO JOj Iq suodslJ SllM II1PUll H JW hJlljllSS jppUllH PPOl jO lUlWAlld lql Ol pll W SIlM SSlOOJd ilU pJllAJOj lqillJjUll000 lql U lUlW lAjOAU S ANaol SlUlwd qs lqil lJj UllOOO ilU pJllAJOj jO SSlU

snq lql uo AJJ1l0 Ol plnu luoo lUlpuods IH jppUllH JW qilnoJQl slUlwnoop

lqilpJj UllOOO slu lpuodsIH lJlldlJd UJq lAllq pUll SllAojdw I slu lpuodsIH jOlUO AOjdwI ANaol lAllq Ol plllUllJJlllU lpuodsIH lllql slqS qlllSI pJOYlJ lQl

C Oll j Wj oC

tpayton
Typewritten Text
69
Page 84: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J d ZZ

SUOISllxlO

SnOJQWnU UO plISUIOU q OlSSQUlY

S lUll31ddll Ull uo 9161 l3V lltlldd tiS QljlJO SUOIl1l10 A lSlld JO l31ldWJ Qljl JO Qnss Qljl plISSlIJppll Slllj UO SS WWOQU

llu suIO1 JOJ pJllpUlllS AJOlnllllS QljllQQW 9161 l3V lluJddlS

Qljl JO 1l 11 UOll3QS plIl1l10JA hlpllllllldllJ lUQPuodSlllllllljl sllu puy Qljl JO MQJA

Uf SJIOYJo QlllJoW03 slf pUll lUQPuodsQlI JQljlQljM S QSUIOl JQp1llMJoJ lljll1QJJUllllOO lUQPulIdQPu Ull JOJ UO lll31ddll S lUQPuodSllll hq plIS llJ UO lSllnb Qlj

JapUnJa ll panSS UOIS WWOJ all jO IUOlUnSaJ pUU sojnJ 81uawlIJnbeJ all pUU IOY IIll jO luo 8oJd all 01 WJOjUOO 01 pUU 8u PJUMJoj

jO lBaUJBnq alluo AnUO 01 AJadOJd a qupuu 8um Ill I IUuonddu all lull UO SS wwOJall Aq punoj S I J JOjaJallIUUonddu pallIunb AUU 01 panss aq lIull asuoon I JaPJuMJoj Y

lllljl plld lUQU

plld Uf SlIl1lPUllW q ql18fi S O 91 9161 l3Vllu dd ljS q 11 UOl3lIS

I

JaPJuMJOj llll Jjuuaoo luapuadapUJ uu IU pasUOOIaq 01 9161 IOY 8udd lS qtt UO lOOS jO 811uuaw allu lll8lIaUlD al IlIbaJ all 8lIOSSOd SJooyjO alUJodJoo II puu jUUOlUUJaIUI IWalMS 08JuJ Jalla l

SUM llUfpllllOOJd Slljl Uf plIU WJQlQP Qq Ol QnsS Ql9WJlln

Qljl l1lljl llUfJllQH pUll UOllllll lSllAUJ JO JQPJO Sl OJ plIlOU UOISSlWWOQUQlnllllS Qljl plIl1l10 A hjJ1lQl3 3 ljl M lUQWQAIOAuI s lUQPuodSlllllllljl

plIpnl3U0 3q lOUU1l3 II QlqlllllAll UOllllWJOJUI JO lunoWll plIlIWJIQljlOlQna

3 hq plIlSll OSlll SUM Joqwnu QUOljdQIQl S lUlpUodSllll IOWO S lUQPUOOSlIOl SlUQWdlljS QSlIllIlUJp1llIlQJ IOUQPUodSQJJOO Ull J P 3 UOlIPPll UJ

QJQIQZJlllUQljdQlS pUll UJnlUQA pUllWJVq PlnoM SlUQwdlljS QSQljllluUpUllljJOJ QlqlsuodSllJ lISOljl IlUOWll lllll plIl1l31pUI 3 1l1Qn QuQA Ol SlUQwd ljsl3llroJd s 31d p1llMJOJ Ol Jllll 3 IlOJop OS UJ 3 dljl M lUQPUOOSllll

hq OluI plIJlIlUQ hlsnolAlIJd l3llJlU0 3 WJQlllUOl Qljl plIwnSSll 3 6L61 lj3JllW

Uf prlllpns 3 ljllM SlUQWQIlUllJJll S lUQPuodllll JO SUOlllllIPOJ JQljJndUOllll3Uddll JQPJUMJOJ lljlllllJJ UllrlO lUQPulIdQPOJ S lUQPuods

QlI UO SJllllddll QWllU JQH llPllS JW ljllM UOl3unrU0 3 OJ SrlJAJQS lOJPJUMJOJ lljlllQJJ UllllOO plIWJoplld JQlllQJQljl QljS 3 WOJJ AJ1l11lS JQlj lAI Ol

plInullU03 PUlllUQPuodSllH ljllM plIUfllWQJ lQWJlllSW J8 upllS V PJUAptJO11lAJJ1l QljlllUfOUOd poplld SlljlllUfJnp pQJlldllJd Qljs SlUQWn30p lljll1l1JJ UUQOO

uo Joqwnu QSUIO1IlU UJQAOIl Qljl Sll 8611 JoqwnN QSUIO1 Wd PUlllulllllIlOJp1llMJoJ Qljl SlllUQPuodSllllplllllull1Sl1p llUlIJlldd llIlWJ lllSW AJ1l1USS IQW

JUIsw h1ld Ol plInUllU03 3 lUlwollUllJJll lljl ljlJA IOUllpJ033ll UJ IOYJOS lUlpuodSllll OJ IlWJll l QUQlj30lI Sl9hOldwo S 3 JO QUO JO lUlW I01l1dIlljl plIAIOAuI 3 ljlJA lUIlWlllullJJll all lljll1aJd ljlJA OlOJ plIJQlUQ JQllll

lUaWOlJllll aljl Ol J1llwIS lllljMawog 8611 JoqwnN aU IO1 WdIlU mlnSlUawdlS lllllllJJ UllrlO p1llMJOJ Ol alqll SUM lUapuodsQlI hqllJaljA lUawollullJJll

Ull olOJ plIJlIlUa 3 pUll luapuodSllll 8L61 JO SljluOW hlJlla aljlllu ma

aJQIQZJ1lJUllljdalS pUll JQ3YJo IlOJhJIJ1lnb lUaJJn3 s lUllpuodsall llJnlUaA PUllWJV lIJaM

3 hq lUQPuodsall ljllM prl1l1d SlIahOldwQ aljl lluomy WJY lllljl WOJJUMllJp SQQhOldwQ hq plIlJ1llS pUll 3 JO lJouJds 11 Sll plIl1lQJ3 hllUaJllddll SUM

luapodSllll hlj3laJjSllllja awos SI p1llllllJ Slljl Uf p1O3QJ QU Jllll13un S 3

UOllllJoWOpodX3 ollJllljlJA lUawaAloAUfs luapuodSllll JO lUQlXa au

tpayton
Typewritten Text
70
Page 85: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W J cc

SUO lI1IO A 1l1UOnmnll pUI13u MOlDf IJll1JJl Sl1q 11 OL60 LLZ L9Z J WJ lu 0210 Ill L 7 U0110JllddV iJSUiJJ17 JaPloM lod 11 21iJld UOiJJO

luapuadapu YlS lJnl1lU llqtlJ Wptl Utl JO lJlM SlA lOW lSOqM JO U6J ZS17Z J W d I 91 oN asuaJ17 IapluM lod IliJ ald uuaJO luapuadapu U

llaIJ1JV p U01Of llS Mtll lql JO s21U PUtllSJlpunS w WOJJ WllS SUO l1lloA lSOqM SlUtll lddtl lSoql ql M AIlUl Ulllltl lP Stlq UO SS wwoJ lql ll qJ

Z17 lStll1ltl SllUtllSU JO Jlqwnu Jll1l lJ21 tl pUtl sqlUow UYlllnoJ lW lJO popoo Jlltl lJ2lqlnw tl JlAOO SUO ltlIO A slu lpuodSlM ltlql S Stlq lql uo pllUtlJ21 lJlM SlSU lllqlqM U SJlqlo OMl pUtl lStll ltlql UYlMl lq plqS n2lU lS P UO SS WWOJ lql

lql fL6 S SL J W d 9 U 0 iJu ddIS zalUi W UOl1UJllddV IaplUMIod IliJ ald uuaJO luapuadapu uI lSUlll tl JO lYlU lq lnoql M SlUlwd qs

lq21 lJJ UtlllO JO splJpunq plpJtlMJoJ lUlpuods lM JtllA 2lu plllJd lql 2lupnOuols lnb U sUOltlIO A lql JOJ lAlOW lql pUtl Jo lUllX l lql Jo

llUtllsqns lql Stl SJ01ltlJ qlns plq21 lM lStld lql U Stlq UO SS WWOJ lql U6a J W d OU IUalJOS D AnD UO1uJ lddV asuaJ7 JapJuMlod IliJ aJduuaJO luapuadapu YlS SUO 11l10 A lStld JO S Stlq lql uo SlSU lll Jpql JO tl Ulp

lqllSU tl21tl lltl21mw PlnoM qlqM SllUtllSWll lJpAUtl UO SS WWOJ lql OllUlS lJd01 pl21Jn lJtl SlUtlllddV plJJn llO SUO 11l10 A lql qlqM lI lXllUOO lql lJOldxlIIM UO SS WWOJ lql UO SS WWOJ lql Aq plnss lSUlll tl JO lYlU lq lnoql M

2lU pmMJoJ JO sSlu snq lql uo 2lU AJJtll U pl21tl21U l lAtlq SlUtlllddtll1lql punoJ S

l lJlqM SlStl l uI fL6J Z J W d 9 ANfo 0 Imdd IS tJUO1tJUJalU

vlfla uuwfnufAJJUH YlS uOltl llddtl lSUlll tl AUlP JO lUtlJ21 01 UO S llp

S UO SS WWOJ lql U JOptlJ Joftlw tl AIU tlllll lJtl Alql 17L6 a JlqW lA

ON S L oN ll lOO JWd Z Zl O Zl MMS 17 U iJu dd IS JUJV JWluUJlddV JapJuMJod IliJ aJd uuaJO luapuadapu llS SSlU1Y slutl llddtl

Ull JO uOllSlnb lqljO lA l1lU WJll lP lOU lJll MtlljO SUO 11l10 A lSlld q21noql

T I Ie l IIo r 11 111 I Pl1 T C I IJ I C 1C f C f 1

lJod s q IB os op Isnw osu B Inoql M I A I B llu pJBAUOj IqllJj spnpuroOqM IUB ddB UB I ql SMOIIOj 1J ssoooU I spuo poJ SOP Sl OAO q B 01 S OIOlBIS llu su 1 oql jl

l1lql U6J f17Z Z17Z J Wd AUudwo

ssaJdxIUd vlf a zn V oNUd 1UUJlddV iJU PJUMJOd IliJ aJd uuaJOluapuadapu U plpnpuoo UO SS WWOJ lql tl vv UOlllS pl11l10 A Stlq OqM

lUtll lddtl Utl 01 lSUlll tllUtlJ2l 01llutlpnpJ Sl JOJ SUOStllJ lql 01 Stl 2lllltlJOqtll3

SJOpJBMJOj IqlloJj pogu q poo uo 1 Jq suodSOJ pUBlSOJI jO uOlsod oql U roSOlluPBld IOU JOj S SBq luoplJns OUOIB S SlUOpU q ns jO UO I lodOJoql ISU Bll omsSB lq UOSBOJ 01 UOlBI uooq OABq OOOIS OA I sod lBql UOP AO lluu Auro jOoouosq oql qlM poldnro SUOlBlnlloJ S UO SS WWOoql pUB SM lllu dd qs oql JOj pJBlloJs p ISB d

wql 9L6 Z AtlW f 17L ON ll lOO

JWd 6ZO WI MMS 9 JU 0 iJuPfJUJ OJSiJ7 tuUJlddV JapJUMJOdIliJ aJd uuaJO luapuadapu UO S llP Jl lJtllUtl U pl JtlWlJ UO SS wwOJ lqJ

OSU B jO UBnSS oql ISU BllB SOlBIIW I Vllu dd qS oql jO UO IBIO A ISBd B SSOUIOI S nb lJ oql sossossod IUB ddB UB JOqlOqM llU U WJoIOP ul

pllOU UO SS WWOJ

lql SL6 S Jlqw O 17f SL oN ll lOO JWd LEI 179EI MMS SuO IUJodJoiJU PJUMJOd uUO IUuJalU U plo uOUO Splp lUlllJ tl UI

tpayton
Typewritten Text
71
Page 86: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

WII tt

6 61 ft nf

Q NOJONIHSVM

IJ8pnf MD7 iltllrJJISlullUPYAAlq W AllNVJ S S

JIQ UQP AqaIQq SJ pUll QQ pjnoqs JQplllMJOJ lq8JQJJU1lQOO lUQPuldQPUr Ull Sll QRUQOlll JOJ uO l1lIddll s l uQPuod8QlI JQPUnQJQql

JlQn88 UO sSJwwOQql JO SUOlllljnBQJ pUll 8QjnJ SlUQWQJ n J Qql pUll 9j61lOV lIOJdd qS Qql JO suo s oJd Qql Ol WJoJuoo Ol pUll lIU pJllMJOJ JO s8Qu snqQql uoAullO Ol AjJQdoJd Qjqll pUll lIuU A m 109 S lUQPuodSQlIlllql JlQU WJQlQPpUll JlQpnjOUOO JQqlJnJ S 1I 9j6j lOV lIu dd qS Qql JO 1l VJ7 UOIllQ8 JlQllljOQAllq 8JQOlDO QlllJodJOO 8l pUll lUQPuod8QlI lllql JlQOJWJQlQP pUll JlQpnjOUOO 8 l

SU081laI lIOJollQJoJ Qql JO 1I11 JOJ pUll QR1lS ql U pI00QJ QqlJO UOllllJQP SUOO uJ

SNOlSn1JNO

WJOJUOO Isnw lU1IIddu uu ljolljA 01 lOnpuoo IUJOW jO pI1lpuUls IjSllj U

J 1jSfllUlSO QJOjllJQljl QAulj QNt QllIU pUU SUII IYllJU OljA aoljl 01 uO SSOjOJd Qljl 01 SSOOOU

IIWll OJ pus suo111 Iddu QSUOOlA Q llJ 01 sn pQJ nbQJ nlj SSllJSUO SUIPJUAJOj llj Jj UUQOO

jO UOISSOjOJd Qljll1 perfnbQJ Al1lI suodSOJ jO NJhp 1j81j Qljl SIIUIUlUluW IjllApdJUljO QJU Q A

8Z1 III rJJdns OU1IUaJOS U pllllS l sv JlsnpU lIOJplllMJOJ lqll QJJ UllQOO

Qql JO AlpllQlOJ Qql QAJ Jd pUll U lllUJllW Ol lI1qo S UO SS WWOQttLlIU OJOJUQ ql A plIJllqO

SJ l 8QlnllllS Qql JO pI11llaIS p lUllJllllD II QOUllUQlUnOO lOUpjnOA l lllqllJQ881l l UQqA rJJdns rJlpJ03UOJ U lUQWlUQR 8ql qOQ UO 88 WWOQttL

lU 1l1lS EI

QlRIl1s Qljl jO sosod md UIJWQJ puu AJ01U n8llJ Qljl QlUlll OJ PlnoA SUIPJUAJOj llj8QJj

llSQIQ QlRIISUOO PJROA QSJAJQljl0 AIJ11WPU lUljA SlInUllUoo jO QSOdJnd JAOAU Qljl Ijl J IO II

QJQIj lUBWQ8UUJJU jO QdAl Qljl OJII SIIJQlUQ All u uOlJOQS jO lOudWJ Qljl PJO U 01 BUO IIWJud oJ

paIlljOQp QlIpnf M lllQA lIlJlSJU WPV lIOJP 8QJd

Qtjl UOllllOlddll 8JQPJllMJOd S 1fJ J lIUJAUQP UJ III lIlIS EI Al J1lllQjtjllA SQIllOll lIU PJ1lMJOJ ltjllQJJ Sl JO QOUllnulluoo QqlOjO Ol

JlQldwQnllOOll JQAQAOH QRUQOllllnoqllA slUQwd tjs lql QJJ UllQOO pJllMJOJ Ol UO PsnoJOSuoo pUll QlllJ

IQPII QPllW lUQPuod8QlI 8JQPJllMJOd S 1fJ J QJ1 SQnU l

UOO mIlO OAl Qql U AlQQ AlPllIW S lItJP1PlS QttL III lIlIS EI s8Qu snqQAllllJOnj II QlllJldO pUll qSlqlll8Q Ol sntjl pUll Qjqlll1lAll AIPllaI QJQA tjO qA8lUnOOOll JQplllMJOJ lq8JQJJ JO J Wnu J1l lUlllsqns II aI nixlll Ol QOUQllldW

Aq AII1ld oUlJd lIlA lOW 81lM luQPuodSQlI lllql lqnop Qjlll Ol 8JllQddll

QJQtj llQ81l0 lllql U SV EL6j loZ JIlnUllf U ON lQjOOQ Wd 1

S Ej UO S j1llUI JapmtlUoS II X lurJJl ddy JapmtlUoIlJlaurJaJ Iuapuadapu OJ lUQRaId lllql S DaI AjQ80jO Q81l 8tjl U pJOOQJ QttL

QRUQOIQtjl lns8 Ol JaI UO 88WwO Qql sJldd tjs JlQPUIlJlS JOJ UlllJllW1lSpoollll sllllu

lOllu plltj lU1lIddllllltjl 8lUQwnBJll Ql d8Qp 881lq 8ql UO

lOV lIUJdd tjS Qql JO UOlllljOOJ QlQA 8Q1llOll Sl lllql UA OUjQAlltj pjnoqs JO

A lUj lUllOlddll Qtjlllltjl pnjOUOO pUll lUllOlddll Qql JO QOUQpldXQ pUll QlI

jA oUjQtjl JlQlOU UO SS wwOQtjl jLEllll rJJdns rJlpJOJUO J UJ AJlUQ UQjSSQj

tpayton
Typewritten Text
72
Page 87: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

u u

1

IfJJliJJ JiJSA3N f1H J SDNV d S

1IlUY AIOA lIlJlS U WPIl OWCYYlq sllq JOpJO lllql Alllu pJoxlll pUllOpllW Ullq sllq UOlIlU WJOlOP qms oN plJ dxo sllq llu Jd S ql U ollpoe

MIllOA lIlJlS U WPV oql JO YlUllnU lUOOs P JO JOpJO 6L6r or Aloe oql MO AOJ OlOU WJOlOP PloOO UO SS WWOJ oql q qM U ql M OWlaqllllql UOA ll S Yl lON

6L6l 9l1snnv

3JUON

SVX3 A Nf10J SI 1IVH10 A I OH f1V NO Sf10H 10 Od

IN S3NV J H 1fl H

U 9L oN 3IOa

NOISSIWWOtlWHHIVW lY HatH

Page 88: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W 7L

Ol 17L61 JlqolOO WOJJ SJIllA JlIlj lUO pUll ONl AlllllUl XOJddll JlAO SPUllX l

SlOIlJ jons JOJ lUll JO POjIOO lUllAlllJ ljl lJOWJljpnd plJlllns lAIlj ljSlw

lUllUJllldwOO j01jN 8801 JO l8UOOXl JO SWlll SIl nlN SIl SlUllulllldwoo JO lUO SIl

qof Il JOJ lJqllllns SIllOU SIlN j01jN lUllJO pOd Il OllSOI lAIlj ljS w lUIlUJllldwooj01jN sqof JO Jaqwnu ljlOl SUJl1llal SIllJIl JIlnlOlIJ pllllo ldwoo AIlWallX l OlUJ

JllU l Ol lAIljPinoN Aljl uon1l8 ll JljlJnJ jljA lnUJluoo Ol allN SupxJd

ljl J l1Ijl plZ uSOOlJ lAIlj sl plld ljl JlA lNOH SlOUlIlSUJ jons JO Jlqwnu

ljl uodnllJSIl pUll AJllA Ol plldw lllll lAIljpUll SUJdwnq lUIIJOJO SlOUlIlSU

Ol SU l1IllJ SpJOOlJ plSSIlAUlIO lAIIjSllllld ljl lSIlO llljl ul sy pllll 18 0SJ1ISIlN j0 jN 1 L oN ll ljOOJ 18110 PIll1 ljl UJ sl plld ljl Aq pllUlIAplI l80jl Ol

JlIIW S lJlI lSllO SJql U lUlW lIlllS ljl JO J1IAoJddllPoddns j0 jN SUOSIlal lIU6L61 IZ lunf plnUJlUoosIO

8ulpxJd pllUIIJO lUlW lIlllS JO ll1AOJddy JOJ UOllOW 1 L ON ll ljOOJ

llS I L oN ll ljOOJ ul lUlW llll18 JIIIUls 11 SUJOJddll SUlnJ AW SUJnsSJUJ llOU Ol uOISllllO plIj AIlUlllJ ISII plnUJluoosIP lOUJs SUOI SIIj lUlpuodm

j01jN slOpollJd JO lJnSlJ 11 SlI pllU ljIOOX l lUllUJlIldwoo joJqN Jnful IIIJOulIUYJO lUllX l ljl lUJWJll lP Ol plPUOOX laq Ol lAIIjPinoN POlll pUll lWn llqllJl

PlsUOO j01jN ul uonll8 ll pllllo ldwoo jljA SUJnUJlUoo JO pllu ljl lnojllN

llnSlJ Sljl lAlI jOIl PinoN II JlAO lJOW 6L61 LI IDIS 61 s1JxaL tftunoJSIJJ1JH fa tft1JOlftnV uotsnOHfa tJOJ t JU aJlt Jas JU1JJJ s tfJJaJ I L ON

llljOOO UJ uOlsJllP s uolsSJwwljl WOJJ pllIlUIIW l j01jN SlSIlO JO Slj I18 11 JOlUO JljlOUlI uOlsnlouoo 11 OlSUjIq PinoN plAOJddll J lUlW llll18 SJIU SUJpllOoJd SJjl JO lOUlInUllUOOSIP JOJ ljSll pUll pljOllal lAIIj Aljl jOJqN lUlW lIlllS11 JO IIIAOJddll SUJljllS UonOW lUJof 11 pl1Y lAIIj lUlpuodS lJ PUIllUllUJllldw

6t61 91 Isn3nv pazll1JUld

030NILNO JSIO ONI033JOHd03 NYlIO N3W3lll3S dO lYAOlIddV lIOd NOUOW

SVXil ALNno J SHllIVHdO uIlIOHLl1Y NOLsnOH dO 1I0d

t

NI SiINVlIJ H 1f H

L 9L ON

NOISSIWWO3WIlI 1VlIH03d

Page 89: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J d

LL6J tEtl Zill lIlIS LI O f 1I1nmZ 08nH 3U d nbl JlIU s n 1I11S 61 6L61 0 unc Jlpl n d 311

suJa1r s3UlmOlMlA1 putJ IUllnDH lloy It tCutxlUJOdllnurms Dl1 puD nuDdUlOJ lIUUlaZOU1Jjf IU O fJ81J SL oN lQOOIlh os ap 01 lJ8d aq1 JOj J lllWII SI luaWlll1ti II plld Kl ollunowe alp 18111 puuIAIO UJ saw nps tOlRllllS AU1I OJ

ou OU llOp 1 111111 nsua o11m waPl2S llll lUJUI1lXl l mwaSpnr Su d l1llt 1fl atdpuJd liltpgMOnO I tflllli TJJdnS

aJlASsS8Jdxg 1l1DIIUtJIW It sID31Ul9lfJfUl 31 OL61 68 Z8 nt oJ tl nIl nunwslpuruqs lJodxg Utn1JmJV 6961 atLE lIlIS I I saun If Jf1U1tJlUoIJRJImv IJOJ smsnl nmoJ81 WS ql8J pooS n 01 U1nJM replds 8nnfxu

q 81 UOlll Jlpun SJlUllW uP81 IO UI J lO 1I1I11uql Japun8u lU1Kl oiJ pun aJopmql1snW ptreluatuaaJSel UO tm11 nnJlllUOO heW lul lua u QUO SQl llflun SQS8 lIDOS 1J lln 1 lou I lJoWJlq1Jn 8L61 6l JKw uopdopuW 8L61 0 06601 1601 t801 lnlS 81 3U i131AJi1S putrJtJi1S tfUtJdwo100Ui1g P O 6L61 6it1 e9 t1 lIlIS

lIlIS81 AJi1SssudxH ytJJIUtJ WII s tJJUli1YJ J1UtJ1J j Idpu d S1f poMOnOJ 1 ltlM uOSS wwOJq JO SUO StpJ1U MlS

JlP pUll JO Ul Jtl SlU W I1lMl tlq sPloq q qM M81mtJ IIW8X I oqu po p 1t tL oN la XlI II pi1p 8tqlTU aql uI I

6L6T OT mnr

ilfJpnr MV7 iltl lVJl l U UlPViNn0 NVWlION S

Iy muluoos PS lSlllllllldwoo S ql pUll plAOJddll S lUlW lJlllS lql Ml AlJ UO SS wwOJOl llfqns l 1 plPU lWll Sll az lITIJ Ol llfqns lJoJlJ lU SlUlW lJlllS

Sl21llJnooU l q qM AJod S UO sSwwOJ lql qlM slJodwoo AllnJ pUll AJodJO Mill ou sllllI0 llqllUOSlllJ S lSllS ql llllU WJll Ol SUlllW 11 Sll 11lAOJddllJOJ plll wqns lAllq Sl lJlld lql q qM lUlW lJlllS lqllllql puy I AI21U PJYXlY

I UOlll21 lslAII JO ApnlS JlqlJnJ 2lU PUOO ppqql M lq 11lAOJddll l1lql lJ nooJ

lq21 W q qM PY lql JO E q 81 UO llS Jlpun Mill lJJlll JO SlUlW lJ nooJ

lql lAJlsqo Ol JO lY lql JO 1 UO llS Jlpun lUlW lJlllS lql sSllOJd Ol YYlulql Sll qns SJOPllJ 2lUl1l ldwoo OU lJll lJlqll1lql pUll SlUlW lJlllS JOAllJ q qMUO SS wwOJ S ql pUll SlJnoo lql Aq plMoIIOJ MillJO slldPII Jd lql ql slJodwoo

lUlW lJlllS Sqll1lql puy I lAoqll pll I L ON ll jlOO U 2IuJTIJ AW U Sll

lIll21y AUll J SlSoo ql M lUllU llldwoo Alld lUlpuods lJ lllql uOlpuoouo lSllS ql lJlllS Ol YYlJ21ll lAllq Alql P OAll Ol qSM Sl lJlld qlOq q qMlSoo lUllpUlllll ql M lAoqllplq Jslp UOlll21 lJ JO sl llnYJ pJO 1111 JO lsnlllg

pupj S ql JO SlS1l U PY lql JO ZZ UO llS Jlpun

lJqllSUOOWoo ljPlnoM slSUOOX l S lUllU llldwoo JO SWll l1lqM JO Mill Jlpun

uOls lnb lql plU llWlJ OSlll lJlql lAoqll lql Ol UO l PPll uI qof JlllnlJlld 11 JOJSlUllJ slullU llldwoo JO lUO Ol lJqlll nS AlIllnoo UYlq lOU pllq lUllJlJOd 1l11lql

lJq ssod SllM l q21noql UlA l sqof uo 1111lSJY SlUllJ lJOd UlA 21 pllq pUll plUlW

woo APlllJlll sqof WOJJ lUllU llldwoo ljJ SJOlllJOOO lUllJ llllAJd yxlwnqpllq lUlpuods lJ lsnlllq PY lql 9161 PY 2lu dd qS lql JO L1 pUll lSJd91 SUOlYlS Jlpun InJMlllun lJlM p muluoos P uooq lIs 2luoI lAllq q qM s llllJd S lUlpuods lJ lllql plqS JqlllSl q qM I L oN ll jlOO U UO splP S UO S

S wwolql Jlpun pxIOI lAlp lq Ol lAllq PlnoM SPllJ lSlql JO IIY LL61 qJllW

rl 1 h tA CO A tA IAI l IT CV1 IJ II rl II

tpayton
Typewritten Text
75
Page 90: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

lW ZZ 9L

110M nlUQUIOIJIy Oql JOtllOdn JOlllO uo lnq 11OlOJd 10J ptmOJll OI11DS vo luO 109 uol1Nnb awM 1OflJ8d Iql lUOWnllll oI0 111 l8t1 OlOU OIVoM

PllOdI UUpaunouoo UOfl111lJUJWPV UOd PUI1nrW oql pUI omr uN pU1I JOA JAIN JO 1tJOqlnV 1I0d 1il11lIJOUOloJOlUI t

uowOOJly 01jl I POOJJ ootS pue t ootS ootS ootS OlN u V

II III lIlS UOISJOQPS UOISSWWOJ lql lllql II Pllj jO llUIPUY plJJOOII UlI Slll lllll 08111 J31l

11 a o UOPlS JlpUn JldoJd SllM Wlw llJlly lJHUl lql jO Ml AlJ SlllluIllOOJd SJqllI UOHllJlpISUoo JOj SlnSSI lqlllUlll0U PIP UOISSIWWOJ lql BY

UOJlOOp IUll U QqlllUPluW II QAUqPJ1l0A I qO qA SJQAOO Qql nU QAuq mA QI1J Aq JO QOllOU uOOn nOS Qql I WAew I se dQOXQUO OS IUWQIll UOJll OOP f1l I 1I uu SA QA UO SS WWQql JO 01 pgl1l QJU SUO JdQoXQ QlA

lJlld lUlUllJ ld Ul ll a W UOllOQSdJ 9v III lllllS lJnplOOJd pUll lOlOlIJd jO Slln S UOISSJWWOJ llU

lmllls Aq JO plUlllJdWOO lnsSJ lql uo Ullql JlqlO pJlllq lq Ol Al UnlJoddo lql JO J31l plApd lp

UOISS WWOJ lql Slll lllll J31l OS op Ol plPU llUI II lllql lOllOU lnoqlA lUlWllJlly lmUl lqlllII AOJddIlSp pUll llII Ml AlJ AS lUlwmlly lql Ul UOISJAoJd

lUO lnq lllIsoddo lmlllS UOISJOQlJlllllU lql Ol SUOlldlOX l S llll11lS jO lJOdlql uo AJUO UOISSJWWOJ lql lJOjlq SllM 111IpllOOJd lqllllql SPUllUoo J3il

plIU lP lJll

SUOHllld lql MOJlq qlJOj llS SUOS1llJ lql JOil t SlII J JlqW lWJ3i1 pUll SlUn JlqWlW JAd UllMl lq lUlw llJ81111uPlllW llllJ lOUlJ lJUOOJllUI Ull 8UAoJddllSIP

JlpJO 81 lPdy s uolSSwwOJ lql jO UOllllJlplsUOOQ JOj SUOllld plJJ lAllqJ3il lOUlJ ljuOJ lSll3 Jllil pUll JAd lOUlJ ljuOJ punoqlSlA lJ llldllU

6 61 u Isn8ny

NOUy 3aISNOJ3 NO 3a O

3JNlnllUlNO J LSV3 lIViI 3H aNY3JN IlI lliNOJ aNnOlUSilA JllilJVd 3H NIlAU3S

OO 8 aNY OO 8 1 00 8 OO 8 SON INlW l3l1DY

U tL ON 31OQ

NOISSIWWO3WIllMVW lWaOffil

mharris
Typewritten Text
mharris
Typewritten Text
mharris
Typewritten Text
mharris
Typewritten Text
mharris
Typewritten Text
mharris
Typewritten Text
Page 91: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

rvl ZZ

01 Illj IlAllq S UIlJlljUoo IlU IlAlY lJIlU 1l11l dWoo UIlAOJd IlAllq SUO S AOJdIlllUIlJ lJ P llllJ lq1lllq1 SlYlY lJ pJOYJ lql SlpllJl lq1 jO AlJqllls lql 01 Ull1

SfsslllllW U W 1nq Slp AOJd 1UlW llJliy Ilql lUlw llJliy Ilq1 jO llAOJddllS P JOjspunoJli snoJ wnu lJll lJlql UO lllU WJll lP S UO SS WWOJ lq1 Ollll 1OlSS llOUlJll JllpJO 81 Ipdy lql U SlUlW l1ll1S llqllUO lYlfqo AI lilllll lql JlAOOJOW

lUlw llJliy 1Ull1SU lq1 U JlnllW plfqns lql AJqllJlP SUoo SdllJlAO l lllql pUll AOJddll AlIllUOlPUoo ullq pllq 9 101 oN

lUlw llJliy lllql lUlA l pJOYJ lsod JlqlOUll jOrl lOU 001 AJooOJd UO SS WWOJlql AJlll UJS S M rJ 917 ol1Ollnsmd UO SS wwoJ lql ql M IY AplllJlllS qlqM UO lllWJOjU d qsJlqw lWrlU lJl Uoo 1OlJm l U lllqo 01 liu Jd II

UOOOOJ 01 J nblJ 10U S UO SS WWOJ lql vJdns Si1Un salvlS panun llllIO A

10U soop A l lun lJll SrlU lJljUoo lq1 UllM1 lq srl pllJd llllJ lAl lnJ1Slp lllqlUOlll l PU JOfllW II SlllUlwdopA lp 1UrlJ Illl lplS ql UO IlJ UO SS WWOJ lql

lllU 1l 9 ZOS M IJ 917 aas rllou UO SS WWOJ IllPlJO JO lllfqns JOOOJdII Sf SJlqW lW JMd 0 ApJ lUl SlS SUoo MOU ql qM d qsJlqw lW J3d lUplS0 l pJOYJ lq1 rlll s d qsJlqw lW J3d pUll JMd U lliUllql II ullq Sllq

lJlq1lllq1 pUll SlJod lSllOlSll3 WOJ lJodSUllJl Jl1llM 1I1l U l1l1llP II Ullq SllqIlJlq1lllql uolloowoo rlU lJl UooJlllI 0rlJnos llqllqOJd lSOW Ilq1 lJll lUlWllJliy lql Aq JlAoo 10U lJll ql qM SllllJ pUllJlAO JMd 11lq1 1OlW llJliy

lq1 0 lnlllA Ilq1 SlqS IIW P WSflllpoWJ llO 0 qlMoJli 1UrlJ lq1 lllql SlUlW

lllllS lql1Sl10Jd SOOUlJ l Uoo lql AlIlllY OOS SSlJppll 01 A1 UnlJoddo lq1 lAllq10U P P Sl lJlld lq1 qlqM UOlllUJJO U pJOYJ llJ1Xl UOrlUll llJ JOOOJdw Sllnllls

uoo SlpllJl lql U SlUIlWdopAlp 1OrlJ IllJlA lS O UO llll l S UO SS WWOlq1lllql lnliJll SrlU lJIl Uoo IlU 8L61 IfJ J O 61P d 178UO SS UJUJOaUJU

JvPllvJapad Si1U 7 salV1S panun 0 Slld lupd lq1 0 suolllIO A lilllll UO

Sllq lJll J3d 0 SlUlwnliJll liU lI llWlJ lql Sll IIIlM Sll SlulwnliJll s JMdlSllOJ lSIlM JO lS1l3 lq1 S qlqM O rlmos lql

OliJlll 01 soddo Sll OliJlll rlJnOS UJl1S lMp W lJll SOOUlJ l Uoo OMl lq1 UllMl

lCj UOlloowoo IlllJ IlSnlll 01 API Ilq PlnoM qlqM Sl l powWoo Jlllnl lJlldlql SOOUIlJl Uoo qlOq 0 SlJJll1 lql 01 lUllnsmd lJodSUllJl lJll Sllpowwoo

JllIW S 0 Sl l lullnb lliJlll qlinoq1lY lUllwllJliy lq1 Aq JlAoo 10U S qlqMOliJlll S UO lllOOWoo J3d JMd lu nulli 0rlJnOS liU U llWlJ AluO lql rlU lP

Al 0 UlSqll S ql liUplp sUoo lllql 1no SlU od ApJlW 01 ldrlx l rlU l1UlS

lU s pllJd llllJ lA PnJ1Slp 0 Slllfqns AP1 IlJll 1OlW llJliy Ilq1 Aq JIlAoo

S1OlW lAOW OliJlll lq1 lllq1 lllll PU 10U SOOp pJOYJ lql SUO lUllUoo SrlU l

Jl Uoo lql 01 AJllJ1UOUO lllAJIlSqO S UO SS WWOlql SlnJ1SUooS W J3drlU lPl pJOYJ lq1 01 AJllJ1Uoo S SllllJ pUllJIlAO lnoqll UOlllAJ lSqO S UO S

SfWWOJ lqllllql SW lllpUll OliJllllll101 s JMd O lJlld JOlI w AIlA lllllJ II S

OliJlll pUllJlAO lllq11YlIJ1l Ilql 01 Jf AllO 0 0 UllUJJ llqJ JMd O AUOUJ lSll

UlnpM lql pUll SJPll1 SOOUlJ l Uoo qlOq 01 lUllnSJnd AOW Sl l poWWoouo SlJnliy lnUIlAlJ lliJlll lql SllP J3d SllllJ PUllIJlAO JMd 01 liU Alddll 10U

JO 1OIlWllJliy lql 0 UOlllUW lPUoo 11 Sll UOlllAJ lSqO S ql SlZp lpllJllql J3d

r i IVIn rr i n I nn n nnn r1t rl

SroU lQJUOOOMl ljlU Mloq UOllllOOWOO jO lOJnOS qBqoJd looW ljl S AjddB Ol AI l I lSOW JB S lBJ pUBJ O

JAd 1j ljM Ol OllJB lOJnOS UJ l MP W ljll A lBJ J3pUB lBJ pUBJ O JAd U Mloqd ljSUO IBIOJ ljlOl AlddB IOU p AIIB YpooS lU W JliV 04L InYO Ol AOl lOU OJB SlOuOJOjUOO

011 u Mloq ll BJd OIBJ OA ltulP lBljl SUO lB PU JBJOAOS OJB OJOljl pUBIj JOljlO Oljl uo

tpayton
Typewritten Text
77
Page 92: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W ZZ

t IDtiJIJiJSA3NlIOH SIJNVlId S

UOISSIWWOlql heplnUJlUooslP SJ 8ulYlOOJd slql reu 03H30 H0 H3H HlliI Sl I

puu plIU lP lJU

UOllUJlpISUOO lH JOj SUOllld lqllUU 03H30 HOSI I 3HOd 3H3HlnsSJ ul SlpIUl lql jO

lJnlnj lql 8UIPJu8lJ 9 SE 10I oN lUlW llJ8V ul pIOU lWWOO ln80IUIP lql jO

uOllunulluoo l8Jn 18uOJlS lM UolluYllsnf JldoJd qllM plIY lJ puu plljUJp lJJO UMUJpqlIM l Jlqll l Plnoqs 1I WJOj lUlSlJd sll ul plJ lPISUOO lq lOUUU

puu plAOJdduSIP lJU qlqM SlUlw llJ8u uodn spuldlp S OO 8 oN lUlwQQJ8V

lUlw llJ8V uOlssnslO 3d Md lql 9 SElOI puu UOllUlJodsUUJl o8J9

pUUIJlAO JlAOO PlnoM qlqM S OO 8 soN lUlwQQJ8V qllM uOllunfuoo UJ

plu ldOOJ lq Plnoqs 8UlplQOOJd SJqlluql plpunSJ ld uOlsslwwOJ lql sl JQNSl UlJ ljUOO lql hq Ol pll lfqo SUOllUAJlsqo lql jO

llUlpu ldlPUI uOlSJlP s uolsSJwwolqllJoddns hlU lIYJns SJOlUj lSlqll VJlA l uuql hllJJ 1un lJOW sl uOllllldwoo lAll nJlSlP luql qns lJU sdlqSJl WlW

Sl UlJ ljUOO lq ll lJl ul lOU SUM lUlW llJ8V lql UlqM popld 8961 S961

lql 8upnp lpUJl lSU3 JUd lql UJ hl1qUlS Sll9 IPUl pJOOlJ lql pIlPUlIUAOJddU lUlSqU Sl IlUJd llUJ lAll nJlSlP jO pooq1 lJJ1 U jO l UlplA llnpoJd

tpayton
Typewritten Text
78
Page 93: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

6L J W cc

UOllJ lU WpU nUlJ I1f1 JO UO SSJwqns glfl unlll Jow palBjdwglUOO Idoo IlllldWOClII lelft xl lOU uo

sWQuodOJd lnd gAllll Plnoqs wm S lUgWxl1Se Ilql JO UO SUIllX Illdw s 1l t oN lUgWPUIlWV 0 AlAuq uM 1111 SU1II0U JI t

dlU81111 d S41 JO Z pUB 0snllp l 1 Utlploo l e U pIly pow SB OlJ qllUllwpUllwe l 19 n1J lfSnoJtjl p pUlwe S1l 089L ON lUllwrulJy 0 dro l dwoo V

gS1nSUBI SUJAlOIlOJ l plU llluro 9 089L ON lUlWmSV SUAoJdde AIIBUOl PUOO JlpJQ 8L61 fllpdV gill J g f

z pue I SON lUIlWPUlWV se 1IlM SB suol Ypow lU81SU ltllQl1uocboou ql q lUIlWQJSe SUlood U Ug0lt 1 0 doo tl uellJJll lJJ lUlW il ueJJ e SUlood J lql 01 ON lUlWPU lWV SU I Y pow nll O UO SJlA IlSud OMl ll plU wqns pill SlUlluodoJd l

ptl 0 dqsw lSu01 UU lfSIll ISBWlJA pUll P11 gUn BItOqS eqs lJI UIlSRA uodd N P1l un fSO oSJ Y1I P1l tlIfS tlf U f PI tl tlf

P1l mn u13dtlf ltlJS pllUI1 lfl JO J WWOO uS JoJ lfl U SJ J uowWQO S13ijQSIuedtlf XJs 3J13 SlUuodOJd If I

ON lUlW YlJl Iy L pUll I ON SlUlWPU ltuy JOpd Sll IJlM Sll lUlW YlJl Ill lIu lood11lU lIPO SlUlUodOJd lql JO SPxSll JXlJlllllun lql SllllJodJOOU AlJnJ 911 0ION lUlW YlJl Iy E 91101 ON lUlW YlJl Iy Sll JXllllulI SlP SllM 1UlW YlJJlll

l1lq1 roU1l1SU S q1 UI lIUfpU1l1S1nO lUlW YlJJlll 0 AIUO S lJlq1 UO SS WWO

lq1 Aq JXlAOJddll S lUlWPU lWll Ull rouo JlA lMOH JXly pow lq PlnoM q qM1UlW YlJl Ill lIUllS Xllq1 WOJJ PUllS P pUll llllJlldlS 1UlWn op 11 Sll lll1l1S lIU ssro

OJd Sl lIupnp 01 JXlJJlJ lJ AJlUl UlAUOO lAllW lUlWPU lWll JXlSodOJd Y0861 LL lsnllny qllnOJq1 lIullllJ xOlPlnoM Alq1 q qM Jlpun lUiJUI

afJulJlllJ fJulood al1ua lq1 lIY 01 pYlu lq1 JO SlUluodOJd JXlS Apll AllUl mnsAdoo lllIdwoo SpJOM lq1 JO lsn llJL JXl UlP lq 1J1lqs UO l lld lq

Eos P llS AJllllI lJOW Sllq 1 lUlWn op JXll1lJlI

llU AlJnJ 11 JO UO Ss wqns lq1 plJ nOOJ Sllq UO SS WWOlq1 UlqM l1lq1 pUll91101 oN 1UlW YlJl Iy OllUlWPU lWll 1UrYlJ lSOW lq1 lIU U 1l1UOO lUlwn opJlpq lq1 AluO slqp Slp q qM llll JO WJl1 11 S E 91 10I oN lUlW llJl Iy l1lq1

lnllJll SlUluodoJd uomsod S q1 JO lloddns uI z 6L61 Ipdy uo JXly pow Sll

E 91101 oN lUlW YlJl Iy JO Adoo lllldwoo 11 JXlIY lOU pllq SlUluodoJd 11lq1punoJ 1 Sll JllJOSU snOOUOJJl SllM JlpJO q19L Ipdy S UO SS wwolqll1lq1 JXlPUl1uoo S n I

JlllllW JXlUO ldlllAOqll lq1 U JlpJO 6L61 nIJdy Sl JlP SUoYlJ 01UO SS WWOlq1 JXlUOm1x lAllq E 9110 I oN lUlW YlJJly JO SlUluodoJd lq

6L6 fIsnfinv

NOnYM30ISNO tHI DNIAN3G M3GMO

S3av NVdVf 1SVOJHIJVd S 1 3H1 NI 1N3W3DNV yDNIlOOd O NOISN31X3 E 91101 ON 1N3W33 DY

tl 9L ON 13JOG

NOISSIWWOtlWUHIVW lV tla3d

Page 94: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W Izz

tCJVt3JJ3S

AlINlInH SK NVlId S

UO SSJWWOQ1Il JO JQPJO ASPlIUQP SJ UOllIlJQPlsUOOQlI JOJ uOllld

6L61 6Z AIlW SlUluodoJd l1l111l1JJ 03l1HOllO SI LI HlIOdElll8 HLSlUQWPUlWIl JO

Jlqwnu JQSSQIIl JQlJIl Adoo Qllldwoo Il11UJJlntxlJ WOJJ sISllq lS1l AqQS Il uo

uoIsSJwwOQql QpnlQJd 10U SQOP SlWll QQJql PlPUQWIl uQlq SIlq lUlW llJl 1l

Q1Il JllJIl AluO lUQWllJl 1l UIl JO Ado Qllldwoo Il JO uOIsSJwqns l1l1 lJlntxIJAIlullnoJ q tZZ S lId 9t Sllnll s uoISSIWWOl1l1 lllql lIlJ Q1JJ

Q UQJlJ lJJQulll InJlSn Il SIl JO lSlJQlUI 11lJ01SJq JO lUlod Il S1I AIUO SlSIXQ 91101

n wwnl WIII I W I n no

tpayton
Typewritten Text
80
Page 95: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

18 o

woj ZZ

01

tCJVliJJJiJSA3N flH oJ SDNV d S

OIIlUY AJl lllllS U WPll lW Sllq IllSS WS P lq1 AlllU PlY1l pUll lpllWuooq Sllq UO 1llll Ulll1 lp qons ON opll dxl Sllq Ml ll 01 lU Wll1 lP Plnoo UO SS wwOJ lq1 qO qM U q1 M lWl lq1lllq1 pUllllupllOOld S q1 U lllllldwoo lq1 JO

IllSS WS P 6L61 1Z Alne lq1 01 UllJll1 uooq Sllq IllOOdll ou lllq1 ul ll S lO lON

6L6l Of lsn3nV

3JnON

Oa 1 S3Nn N3GIS3 d NVJI 3WV

a 1 Aa3NN31 aNY H Old 3

OZ 8L ON BlJOa

NOISSIWWOJ tlWLLHIVW IVItlGtH

Page 96: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

Jld ZZ Z8

UO l IlK1Ol 6 611lLrll9t m sn 6 ISItun l ruodlOUf i NfJ 1 8 801 q l

nfo 1I011lOJ Q 81

UOJlOOl 8plOM JqlO uJ 9961 II PZ 60L PZ t9E JayltlJIf1 1I00 llU1U0 lJDJV IDlIP J QOS 100 11 lOId al8

Q 81 uop JOpUR IlaMod UOIIIIWUIOO Qtp QiIl800q UOJ11Jvdaa 0l111ou PIROIA NQl Kq 81 oo 1Jo IutIl1JOW 01

uNU1O1I1S pQIUn 1111 JO lOJlWWOO Gill OlI81UOWlJlOP oq OJ n qtlq lqlluontJun 01 QJaNo Ql8J 10111111 IiIl11 n ullAg

tuJlOOId ql ul poOAUI 11uOlUJpu8 ev lOOJoP tpIuollOlP1 mf aJOjOn1l1 reM H a3IOWWOO QlllllJ01UI uII1UQwdq 01 AluO IOlddu 1 81 UOI1OO1 9WJ 1J 8 I

tlV BU dd lSlll JO UO lYlS hUll pll1l10 pill l plUlP l sBUjll Jll lO BuoUlll ll lM UjJlMSUll UII pl1J ldY LL61 IZ hJlInUllf plnss Bu pllljo mq 11 Jlpun BuoIBUOH

Ol uOlU lSIlM llllllQS WOJJ SlOllllod pljJJ l lUlJJ UlZOJJ JO SJlU lllUoo OMl

JO BUllssuoo lulwd ls llllM UO lllUUOO U v18 PU8 S q LI8 Il LI8 918lSJ d 18n s n 91 9161 llV Bu dd lS lll JO 1 PU8 t q 81 1

8 81LI lsJjd 91 SUOlllS JO SUO l810 A plB1l1J8 I1I Sll8lS pll Un lll JO llJ lW

woo uB IlJoJ Illl U JQl8M hq Jl JJ8l UOWWOO 8 ldY WOJJ 9L 9Z9 1 JO wns

lll Uj UO l8J8dlJ BuP1llS lU 8ldwoo 8 plIY UOIl8JodJoo U8 P8Ull8 Ill

sLJYd

plnU lUOlS plq Plnoqs lIu

plllOJd lql pUS ll pnrlJd llM plSS WS PlQ Plnoqs lU8ldWO l lql plAOJddll lQPlnols lUlW llJBlllU lWlIU lS pUll lSlllI lJ lqllUlwBpnr hW Ul BU plllOJd lql JOllUllnU lUOlSjp PUlIlU llldWOllql JO 11lSS WS P lUlW llJBlllU lWl1U lS PU8 lS1ll1

lJII JO llAOJddllls mlllJ UodlllSH lIUlllS 0 Bu dd lS UodlllS PU8 ldYPll SlU 1lUlP SQJd UlIljJ lWY SlUlpuodS lJ OMl Iql pUll IlI pn

hplUU II1I llOlJ ll lUllU llldWOl lql 6L61 6 hllW plIY UO lOW lU Or h8

6161 Of zrnBnv pazl1fJUld

03nNlLNO SIa DNIatl3Olld 3IanctllldHUM OtlSS1WSI0 NIV1dWO03AOllddY N3Wtll11aS

Ill SlIN1l JNilaISlIlld NYJlllilPlV

I

cul AaaNNiIIaNY HlOldllil

OZ 8L ON

NOISSIWWOJ 3WUHlVW1V M30ffiI

mharris
Typewritten Text
Page 97: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W d cc

M I IO me u3 I 01 Iddel fllq OJe 111lInn SUll W 1 wiM O IU eSlp OJd D lllB Jl lJl4A 1 o qnat VII lU3Wlmttafll punod OOOZ M lqS 3h9

fI llldON lIJBl lqSpJd PUIlIJ lAput I S Md U J wnu pue W1 luJ WIlS 1I1 re UMOllS lJl y leJ SOlIl JlIJNJ l1lL

oN lJJBl IROOl s Jtd O OOI9 vO oN WlU 1e plJ1r XIdll Slll J slOle1od plJj q m3JJ UlZOJJ LL61 I umUBf 01 JOlds

6L61 S JllnJql J PItJ OCIUlJ lJUro SUle nllld IllItB pew S JIlWU JBI WS pue SL61 vi JMlW lldsJXl JIlS lurllldwOpUlWY 01 l SU ItIOIIV JlPJO U SUJBOOde SlUlWwro WOl X llnSJ IU llldwoo JXlpUlWB nu t

9l1 Wl ON Isu l

PU1lll1 lW Jqn110 SOJPI OOOJ JO wiM lOO oo OZJ 11l1lS S1lM ll1ll1qli llJ lq1PU1l Wl1SAS P1lW lq1 01 plll lAUOO S1lM lJJU1 lq1 LL6I I hJ1lnUUf lA 1ly3

spunod OOOZ JOO oo SZI11l plU 1lWll U1ldUf 01 llUl lJQul1ldwoo lq1 1l yl U S1lM llUJ Sq1 llqM 11lq1plli lU1l OSJU J2f SlU JlKjW lW Md Aq liuoJ liuOH 01 SOOl1l1od plPJ q UllJ

UlZOlJ JO lli1lpJ1lOU S1lM lllq11 lyl U S1lM ll1ll S q1 lJ qM l1lq1 puu Sllil1lq

JUU Wll1 PU1l 1qli llJ U lS1lll U 8 Z6 U 01 pllUnOW1l llil1lqS qll1lq1 plli lIlUJ2f 9 lUlwd qs lq1 JO lUlW llnS1llW lO 1qli lM lq1 JO lll1l llli lq1 pllilUqKj pJnoM lood qs lq1 1uq1 liu uulw S S1lq U01 lnUlAll 1l 01 plliu1lq lllM

llil1lqliU A lJ1lU Wll1 lq1 PU1l llUl U1llOlq1 9L6I SI llqW lAON uOspunod OOOZ JO U01lOO oo Sn S1lM SOOlU1od plPJ q UllJ

UlZOJJ lOJ u1ld1lf 01 llUl lJq1ll1ldwoo lq1 1l ylU lllM Sll1ll lSlq1 llqM osIVliuoJ liuOH 01 SOOl1l1od plPJ q UlJJ UlZOlJ JO SlUlwd qs plplU SlU J JKjW lW

Md ll ylll lllM Sll1ll lSlq1 lIqM spunod OOOZ JO U01lOO OS S JO llil1lqliU A l JUU Wlll1l oSJu S1lM lllU spunod OOOZ JO U01 lOO 00 90 S1lM

ll1ll P1lllUOO JU OOs 1qli llJ U1llOlq1 9L6I PI llqW lAON llOJKj PU1l uOAUP

ulA li 1l UO llUl lJQuJdd1l lq1 liU UllUOO uo snJuoo lWOS plsn1l AJlU llUdd1l

UOllUn1 S ll1ll plJll lsun S q1 PU1l plliu1lq liu Kj AJlU1l1SUOO S1lM SOOl1l1od plPJq UllJ UlZOlJ 01 lJq1lJdd1l ll1ll lq1 Wl1SAS P1lW lq1 01lJl1l1 Md lq1 JO

UO SJlAUOO liu pnpu SUOS1lll JO A1lJ1lA 1ll0d Md l Ull lJUO punoq1slMY 1ld lq1 JO llqW lW U SlUl l lUlU llOO 1I1l 11l S1lM ldV in Wd p ON

yp1l 1qli lld J1llOlS l Ull lJUO punoq1slM Y 1ld U plqs Jqnd lllM q qMlSoq1 lllM 9L6I llqW lAON U J2f 01 plqS UlnJ llodulS q qM Sll1ll lU

LL6I Al1lnu1lf U 1Ulwd qs lOJ U01lUlw llnS1llW

lOO oo OS I JO ll1ll1ll1l SlPJ q UllJ UlZOlJ JO Sllll 1llUOO pll1ll lliPlllOOJ AllOJOM1 ooq 01 XlJl1 Aq llodulS plPUl1SU J2f 9L6I PI llqW a uO 9L6I6Z llqW lAON uo XlJ l1 Aq plJdwoo llodulS liuoJ liuOH liu pnpu lS1l3 llldlq1ll sl1lJd SnOp1lA 01 SlJqlll llilA UlZOlJ PU1l Sl lJ q UllJ UlZOlJ uo SUOll1l10nbllllJ 1qli llJ U1llO lOJ llod1llS plS1l J2f 9L6I lKjW lAON U lW llWOS

Sp1lJ S1lqliu MOIIOJ lq1 uo 1UlWOOlli1lJUl lUlli S lllq1 llA lMOH plupns lOU lA1lq uOllu

SU1ll1 lq1liu pUnOllnS SlUJnlll1ld lq1 1I1l AJlUlnOOsuo sllnp lOOld AJlAOOS Plq1 U liu liuliul All1ld AU1l 1noq1 M plq Ull S1lM lJlllS 01 lUlWOOlli1l lU

9ISZS JO wns lq1 U SllillW1lP lOJ A1JJq1l J pl1 UlJ pl1d lOO1l

1nq plUl 1lP 1UnOW1l lq1 lOJ A1JJqU J pl UlP sliu q1 llq10 liUOW1l llMSU1l

S llod1llS v qIp8 s n 917 9161 py liu dd qS lq1 JO 1717 UO llS PU1lTOIS Md 917 JO SUO lUJOliu lilll1l

EUO SS wwolUl ll1lW J1lllpld lq1

Aq plSU l JllpJ1lMJoJ 1qli lJJ UUlO 1UlPUOO lPU U1l llodulS WOJJ UO llllUdll JOlUnowu lWUS lq1liuPloos lU 1lJdwoo plPU lW1l U1l plJY J1S Allulnoosqns

rn n I I CV1 1I unJ rYI n 11

tpayton
Typewritten Text
83
Page 98: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

lW ZZ

3M uOj1 Uf POUJlluoo potpn8Iupf1w ollUolp OllUVllUnd I1dttUUOJd RM uot18tnfo1polIO ill UOpJIOjlll1Olj q pwooqooq OlIOO I ptlOl lOpulI 00II0l0QI0II0lCI0l 1II 11 JIot1Kl l3OS

Idwoo JO H lIq a OOS

II 1p Iu IOld

UO SS WWQ Sjlll Aq JQPUnlUQql plllllJlnWoJd SUOlllllnlJQJ JO lOY lJU ddjqS QlIlpllllI0 JQql Q lllql ldV JO llod1lQS JO 11lld QlIl uo UO SSjWpll Ull Sll plnJlSUOOlq II1lqs lUQWQQJlJll J Qql Uj plUjlllUOO lJUj1ll0U lllql llJlJll SQ lllld ny QS1lQJQJS Jlf JO UOllllJQP SUOO Uj qOllQ oo OSS I JO wnsQql Jlf Alld Ol pllJlJll QAllqldV pUll llodllQS UOlllllJllllJUjwnsuoo QUIll pUll AllSOO P OAll Ol JQplo uI

LNlIWlIlllllS lIH

6 Ott UO lOQS pUll P El OIS5 81 9v JO UO lllloUj UO lOllSUllJllJUjplllMJoJ AUll Ol OOUQJQJQJ qljA 11ld oujJd 1l Ol SlJlldUll Qq qOjqM UOllllWloJU AUll JO

SSQUlOQJJOO Qql U 1llJOOSll Ol OOUQllJ P Qnp QSOJQXQOl plllllJ JQplllAJoJ lqBjQJJ

plSuoo lQql QSn1lOlq pllJllWllp SllM lllllll SUIllll0 Jlf llodllQS lSUjIllJys I UO lOQS JO UOllllloUj J1lJun pUll AJOlllUJWllOSJP Allsnfun QJQM pUll L1 uOllOQS JO UO lllloU Jll O pnfQJd pUll AJOlllUWllOSJP Allsnfun QJQM lSJI91 uOll

oIlSJO UOllllJoUj SnOllJlllUllAPllSJP JO 11lPlPnfQJd lll11UQJQJQJd AlqllUOS1lQJun pUllAlnpun QJQM qOjqM 8OO AJQS JIlUjWlQl pUll UOllll11odsullJl JOJ SQlllJ JO lUQwAlldOl pllOQfqns SllM l SlllJ Qql JO UOSllQJ Aq lllql ldV lSUjlllJll SUIlllJo Jlfs lJuoJ lJuoH Ol QUO Qql Sll qonw Sll J1llq AluO lSOO QAllq PlnoM l lSIl AJllnUllfuo ulldllf Ol QPllW uQlq pllq Jllq III QUO Qql Ol JllJWls lUQwd qs 1l J llllllSUIllll0 lOQIIQ Uj ldV Aq plUQP lnq Jlf Aq QPllW suoll1lllQIJIl Qql JO QUO

L LL61 qOJllW Uj 18 819 01 JO SQlJJllqo pJ1ld JlfJlf Aq lqlJnos

UOllllJlldgJ JO lunoUJll Qql S 9L 9l9 v SQJnlJy OMl lSOql UQQMlQq OOUQ

JQIIP QU lsll AJllnUllf uo lOQIIQ Uj SQlllJ IJllll JQPun QlJJllqo Ol pllnb

QJ SllM ldV lunoUJll Qql 18 819 01 JO pllQlsUj SO l66 S uQlq QAllq pJnoMSQlJJllqo JIllOl Ilql lUQwd qs Qql IlJtllW Ol ql9l mnullf Illun SAllp MQJ 1l Pll llM

Qq PllH NYnnNL LNil ISmIJQql JO lJUjllllS lSIl AlllnUllf Qql JOJ lUQwd qsQqllJUjJtooq Aq plMOnOJ lq Plnoo SUO lOnJlSUj s Jlf lllqllqlJnoql AIUQJtlllSJWSJlJQJo OlJ1lJl S llodllQS JO QUO IJllll QqllJUjJtOQqOlJ lnoql M lnq AIQlll plWUIlQA lOlllQ SllM LL61 61 AJllnUllf JO UOllOll IIjJlll Ad QqllllqllJUllClU

QlllJ 01Jt 0001 Jld 00 80 Qqllll ulldllf Ol SQOllllod pljJJ qOUIlJJuQZOJJ JO SlUQwd qs QJQM QJllql LL61 I mnUllf uo UO SJQAUOO OIllQW Qql JQlJlllllql pllJQllll Jlf 1Il61 AJllnUllf uo Ulldllf Ol QlllJ Qql Ol pJIllJQJ U UOllOll AUll

QJt1lll0U PIP Ad SQulJQqWQW Ad 1l lJuoJ lJuoH Ol QAOW Ol UlllJlq UjIllJllSOOllllod pljJJ qOUQJJ uQZOJJ QlJUllqo SjqlJo llnSlJ 1l Sll lllql sWJ1llo Jlf 9L61

SI Jlqw AoN uo QAjlOQIJ QUJIlOlq qO qM QlllJ 1Il MOllq S 8S Aq lSOO JIlUjWl l

ql pUll 6 lv Aq QlllJ Ull000 ql pllQMOI SJU sollJl 0001 Jld OS S Ol llJJIlqo11lUjWl l Qql pUll sOIJt 0001 Jld OO S91 Ol LL61 9l AlllnUllf QAllOQII QlllJ

U1lQOO Qql oonplJ Ol plP OQP PUlllQW OOUQJQJuQ QlIl LL61 61 AJllnUllf uOOjJlQW Ol UO SJQA

uoo UO lJUllqo ou sollJl 0001 Jld oo 8El SllM IllllJ Ulldllf QlqllJlldwoo 1l1lllOQII Uj SllM QlllJ Sjql QllqM lllql pllJQlIll Jlf L 11 Aq QlJJllqo lJUJA lOlJ Ilql

plSllQJoUj lnq lllJ UllOOO SnO AQJd QlIl plUjlllQJ UO SJQAUOO Qqlllllll pllJllll1l JlfJ lQW Ojqno JO solJt 0001 JO wiA Jld OS S lllQlJJllqo lJulOlJ JIlUjWlQl Ilql

tpayton
Typewritten Text
84
Page 99: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

rVrd 111UHlIP1GG 0 UljJO oun JO ltqof

uodn ANo ooJ OJ A IJmw uO 1UIUlQ qJ uJOIIn J8ju pnf OJ OOOJORX 11 II l qlmeld Plno I 1BUJIlOOOOa11fllldwro PUB UOltl8l lf tpoq OJ pgzJJotpne Ml tsuwIQS lUnlJQlnM JO lIJljJO pJ Bpun qSnOlp Ul Jlro lewSllld

lu uqsnfpu 018SOdoJd JO lUW n 0 Ul DO l wnSJtl peJ 0u04leJ lUOO puttuo ssWqns aql JO Al URlJoddo MIl lAllq lJ8ls plud J1 U 118 l 1WO lsmlf gqnd 1I11 pmr SlfPlQOWd lll 0 18U nl1

Wl lllA lJUtlU lOO UJ s pOJd t6 tOSfi 1fd O 9t lJnpooJd putt fP1JJd O8aIRlI s uo sswwo al ljO 16 fn1J II

l WJd lSQ llf qnd l1l1 pmr S1JplOOOJd 1I0 0URrea aql gWl UQqA

luaWlmfpll OSBSOdOJd 10 lUlW PIM O SJl Uo Slu wn8mtl BJ O UO 19JlPlSUOO pue uoSSWqns 1 I JOj l UR1Joddo 1J1KIJls UllUJ 8 lAP lJ8lr uuaSe a1U AOJd IX ss 5 0 80 S V am 11JJ1SlI WPV ltJ1JO t q S UOP2S01

6L6l n tfln

iJ2pn MV7 iJl IVJ1S U WPV3ZNV D flOWA3S S

nllpIlOOS p Kj gllpoo XlJd llIl pllll l pnflJd IIl M SSWS Plq lIllldWOO llIlllllU 03M30 MO M3H M1d SI 1I

AOJddll lJll llllW

lIlllS JO SIIOlpIlOO pllll SIIUll llIlllllI 03M30 MO SI I 3MOd3 M3HPV glldd IIS llIl JO 1I0 lUI0 A JllIlO JO llllqlJ II

JO lJnlllll llIl II lOll S llllW lIlllS l1U SSYYlns JO POOIIIlJ llIl pllll 1I0PllgPJJO SlSOO llIl JO lllllll lSl l lSJll lJ II SlIllSlJd lJ llllW lIlllS llIl SI lllld 1I11 Ol

lS1IldX I llqllJlp SIIOO I lllll lAlllI PlnOM gllJll l1I UlllI1P AI 1I11 lsnllYlq pllllglllloo JOJd S lIl Ol spldslllllg lIIlAOII lJll lJllIl lsnllJlg llndSp II lllnOWll llIl

JO lJllIIS Illnoo AIlllllll XOJddll 1I11 JllKj Sl lllld llIllIll 1IlIIM Aq lI llgJllq II llnJlS

llnSlJ II Sll pllll JllIlO lIlll l IIl M pllll Jldd IIS llIl IIl M SIIOPllPOgl1l IIl llJ POOgII gllglll AllIl SSlI llIlllA lN PV gll dd IIS llIl Jlplln gll OpgllOJM 011 1IlKjSllll lJllIl llllll lIolsOO llIl Ol lJlIIPll Ol lnlllllOO SllllpIlOOS lJ l1I llllpllOOslJ l Sll llOOlllS II gllJq Ol plllW l llooq lOll lIllldwoo llIl Pllll gllJll llI

ullplIlP AI 1I11 J nooJ lAlllI PlnOM pllll gllpoolOJd lSllIlOO AISnOJogII

SliM SIU lI 1WlIll lS JO JIlIO llIlldYYlll OllSlJ lllI lJqnd llIllI Kj Oll puy I6L61 119E 1 MMS 81 iJJtJiJS sSiJJdxg fYVJ11UV1W 1 slvJ WiJl J uv2JO8L61 801 MMS 81 hJU iJJtJiJS PUfJ7 ViJS 1 0 lVoUiJU P10 8L61 tvL

MMS 81 JU SiJU 7 dISUlViJ1S Vl1iJQ 1 JU 0 JiJQwn7 UOSU qo 8L61619 MMS 81 nviJJnuiJvL UV SV1VJ1SnV lsvoJfjJvJ 1 UO IUJodJofJ01SJiJvJ o woPV gll dd IIS llIl JO 1I0Pll10 A JO silll PIlY JO SIIO SS WPll llllSqll

llllWAlld 1I0 lllJlldlJ plS wOJdwoo II JO S Sllq llIllIO sgllpoolOJd lApllJlS IIWpllJO slI lwlIll ls JlZJolllnll sllll 1I0 SS WwollIl AlJOO S lIl JO l 1I11JllIllnJ III

EL61 LvZ VVZ W d Ll SiJU 7J 1

UVllV 1 iJWloq iP dJvlS fJJiJfAl AlIllJlII lgAl PJllA pllll SSllIl llllOO SSlIIJ llJJ llIl SJOAllJ 1IlIIM II glnplI S 1I0 ldwnslJd UlA Ipllll sllllw lIllls SlgllJnOOIl l

lSJnOO JO Mlll l1U Z Slllldwl JllJll lJllIl pllll 1lllnJ Aq llllpllllW Sl llllW

lldlll sllll 1I0 SS Wwol1U o SlIllWn2lJll Illgll pllll PllJ JO sgllPUY plSOOoJdl wqns Ol lllgJ llIl Sll llllpllllW IllIIO SSlJgIIOJ lWllS llIl Sl Jllll sgll poolOJdlA lUJlS IIWpll JO llllw lIllls loos Ol lllgJ l1I sgll poolOJd lA lUJlS II WPll JO

llllw lIllls llIl JllSOJ AlJOO 1I0 SS WWOpllll lA lllIS glllUlIl Illls IPM S 1I

NOISfl JNOaNY NOISSflJS10

1I0 SSWWOJ llIl Aq IllAOJddllIIOOn AIIIO lA lll lll Kj 1I11IlS llllWOOJgll llIl lUIIl OOJgll OSlll SI lllld l1I

tpayton
Typewritten Text
85
Page 100: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W zz 98

iU 91J9S

AlINlInH SINVlId S

Illlly AI AH1JllSJlIWPll woooq nil JOPJO llllll AIBlIPJOOOll pUll pllWu q nil UOHlIlIWJ P lions ON JJdx nil BUJPQQOOJd IIl1lll pnf A1IlAHllllllllwPY llll JO lOUllnU lUOOIIP JO J PJo 6L6l l lsnBny 1Il A J OllU WJ l P Plnoo UO SSJWwO lIlllollA U lIlA wH llIlllllll UlAJ S lOHON

661 fI9qUJatdas

a UON

VXSVlY NlIIJ SlIA NI SJNIOd ONVNOJDNlHSVA 1IlLLVlIS Nl8A JIH lSVilI NI lJ

pIVlIlIN Io lSOdOlld NI lNIV JSV1ySSOd 6L ONJIDI

oaNOISSIWWOawu mvwlV atlO

ild

Page 101: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

L8 J VlIll

nIV tU1t1l8ulI O JO UMOl liltOJ iJUAOW o8JIr8l1 IOAlI

JBqPUB UIJ UO U1A1lJpql A PM 0S9 U 1 6L61 SI VY1 lAP lJl JllJlW 81 oN d WJ JJ Bl1VJ uJ JlO1Sfl018 WllI loo41 pU8 ISS WllI SlllOq pun8JOJ lldOXa 1b1np put t1J BOl pQHdde U lilt IJ 1I8 11U sV

IYl JlS lljSlllV pJllA lSl1 Sl U pllJodSUllJl O Jlll uo suold YlX l U lllJYl

ql A lSlllJ lU llllJ llJlU l lUYlJOO L 11 pl1Y lVd 6L61 l qlJllW UOSJlllllW lSOql

U UJYlUOO SllllJ lUlU lJOO lql lJll lSlq UO lOW lql pUll Jl 110 lql iiUpllOJd

lql JO SlOOSll 111 UO lUlW llJ ll llJll llOUJ ll lUlllsqns U lJll Sl lJlld lU

NOllOW 3H GN 113110 3H

DNIG33001ld 3H 10 GNOOllDlJ a3H

plnu lUOOS P

lq p noqs lJpllOJd lql pUll pllUllJii lq Plnoqs iilJpllOJd lql llllU UJJll

Ol UOlOW lql plld lll lq p noqs lUlW lJlllS JO Jl110 lql lUlmiipnf AW UIUO lOW lql iiU lJoddns pUll Jl110 lql iiU SJopUl

UO lOW pUll Jl110 lql Ol lSUodSlJ UlllpA 11 plll wqns iiUpllOJd lql U AlJlldJlqlO A UO lql lSunoJ iiUplllH 6L61 Z A nf UO lpllJ JO Yl AJlS

JO Yl AJlS lljSll V pJllA lSl1 Sll Ol plJJ lJlJ A llllUJll ll Jllj1l lJlq lpllJ

lljSll V UJllS l1UOliilJ qSll1 lJlllllS lql U lSlllJ lU llllJ llJlU l 11 JO UOllliilSlAU S UO SS WWOJ lql llllU WJll Ol UOlOW PUlllUlW lJlllS JO Jl110 UlllPA 11

plll wqns lUlpUodS lJ lVd lUI lUlll jSll V SSOd 6L61 81 A nf uo 6L61

II A nf uo iiUplllq lql III plq llllJ U PUlllSJlpUn Ull ql A YlUllpJOO lllUI

6L6l aqUlaldas pazllvuJ

a30NUNOJSIa DNIa33JO d a3 NV D DNIa33JO d

3 VNIW 3 O NOUOW 3SV3 JNI 3 V dO

NOU Od dO aNOd3 hDVall0 Aa N3W3lll3S

dO 3ddO dO SW 3 HlI1AldWOJ O a3 3a 0

N3aNOdS3 a3AO ddV N3W3lll3S dO 3ddO

ISIV N1I3 S31NI S NIOd GN

NO DNIHS1 3Ill 3S N33Al311 3S3110NI 3

I1I3N3D G3S0dOlld ONI 3NIl IsIV ssod

P 6L ON

NOISSIWWOHWUHIVW 3atW

Page 102: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W J ZZ

tpOlIl W 11IOpAIBUB poldaoo8 q p1nnaw n UJnlOJ JOalVJ OAJ n Ul1lJNo 1Vd ptAOJd II Q11811111InJMIUn QlJAU01lO lO ot q1JUOftlaJun 11mrun ani J paodOJd iii Joq1allh Z

J181111Y Ql11 1ViIQ JZlUlft pUB 8nLPUg qOUR1l1Od UOllJodJoolUOJvd Il wOJJ 1Vd q po88t sa8tvq pUB 11m 1111 01 atqrIdd8 eauodxa PUB lUaW18OU BU lltXUBJO pcnpow JadoJd lHIL

oq 01

8QftlSJ OM1 alii P11JlS UOI lUIUKD aqL 8 PUB LI ION d JWd IjJJJIL 8 1Vd 11 lUoJIIAQIjJJ1l1 Ol 111111u01181JlaAUl otL

t 01018 pDlBWJlN 8 aJ8qllQJ8W 1Vd t

plpafOJd sayd lUlWlS lAU uo UJnllJ SUlllllnfS PUlllUlWlS lAUj pUll SlSU ldXl

SU lIl00llll JOj lIlllS lql hq pasodoJd hSOIOpoqllW lql SUfZlllfi lUlWlS lAUuo UJnllJ lUOOJld p plll pasodoJd Vd llqM lUOOJld an jO lUlWlS lAU uo

UJnllJ Il UJIll Ol plll WJld lq Plnoqs Vd lllql uOlsod lql Sl lll lIlllS l1llnUlA lJ XlIl lJOjlq U 8 IE lq Ol Sl lJlld

lql hq pllJSll Jlllll lUnOW1l fSW uJW 1l Ol lS1llJ U ll1lJ saVd hq poonpoJdlnUlA lJ jO lUnOUJ1l lql PU1l Vd hq lOU lnq IJ1llS lql hq plZllln hSOIOpo

qllW UOllll00l1ll lql Jlpun lnUlA lJ llqllMOllll lql UIlMl lq OOUlJ lllP lql oonPlJOl S1lM SUjl1lpdn l1lql jO llnSlJ lllSlSOO Ilnj U SlSll lJUj lSlqll lYlJ Ol SUlY11 0 0 Sl pll1lpdn Uj1lS1l Vd hISUjPJOOV UOS1llS UOllll8AllU 1lIS1lIV pJllM

lSl1lql qSnOJql mU lUOO Ol pll ldXl aq hlq1lUOS1llJ Plnoo qqM lS1llJ Uj U1l

Ilnj Sl jO lSOO lql U lS1llJ Uj SnOl d lJd 11 POOUljJ ldXI Vd SU J1llq lql jO

llllp lql PU1l l1ljJll1lW 1100 Sl jO SUjIY 11l11 U lql uIlMlaq POjJld lql uI

OOjAJlS lql Ol SlSOO

IlSSlA plXY SUjlll00ll1l U plhOldW I lq Ol hSOIOpoqllW JldOJd lql Ol l OOSlJ

qlJM lI8lS lql PU1l Vd hq uI 1ll SUOl Sod lUlJ IIIP lql uo hUJllwjJd plS1lqS1lM lUlW IlJS1l q1llJOl lJnl1ld 6L61 II hlnf SU UlWWOO SUjJ1llq JOj llS

Ulql S1lM JlllllW lql PU1l lUlW lllllS 1l UO IlJSll Ol llqllun lJlM hlllllWjlln lIlllSlql PU1l Vd SUO ssroS P lql U plA I q1l S1lM SSlJSoJd 11l11u1llsqns lUq1

plll wqns pllq l q qM 11ljJllllW 11 0 0 lqljO sSUjl1lpdn PU1l Ol SUO sjAlJ I1lJlA lS lpllW Vd suo ssnSjp QSoql jO llnSlJ 1l

sv SUjJ1llq I1lWJOj Ol SU oS jO hl SSllU lqllnoql M JlllllW lql lllllS OllJOlllU1l Uj IJ1llS S1l hllA llllOO Ol plJJ ljlJ SlWll lwos llsunOJ SUjJ1llH PU1l IJ1llSlql ql M SUO ssnS P pllll11 U hlllll plWWJ Vd fS lU1llsqns lq PJnOM SUjplloJd hJOl1lpnfp1l I1lWJOj 1l Uj SUjl1ldp lJ1ld U plAloAUj lJOlll JOM PU1l lSOO

lql lsn1llq pUll lJqllAIOSlJ aq Plnoqs PUllllllJSlllqllou lJlM IJ1llS S ShlllUVfS U1lU d jO ooYJO S WOUOOiIhJlsnpuI jO nlllJng s Wd uIlMlaq SOOUlJ llI PSU lSjXI ulql reqllllj Vd lsn1llq OOO IL hIUO SWJll lAllllllJ PU1l llnlosq1l

qlOq U 1I1lWS SliM lSlllJ U lql WOJj plA Jlp aq Ol lnUlA lJ lql lSn1llgVd

hq oojAJlS lql U plsn Wlwd noo lql JOj SlSOO 1lSSlAplXY SUllll00l1ll jO poqllWJldoJd lql PU1l UJnllJ jO ll1lJ jO SlnSS OMl lql jO UOllllJlP SUOO Ol hllll11UlSSl

pll WI lS1llJ Uj ll1lJ lql jO UOIl1lS11SlAU pll pldX l UllplJ lPJO UO SS WWOlql6L61 h1lW UO Jllj1l lJl1l6L61 81 hllW UO lA palll lUJ1llq lSlllJ Uj ll1lJ

lllUO SS WWOlql ql M pl1Y lJlM lS1llJ U ll1lJ lqllSUjllS1l SlSllOJd ON

vd hq SlSllhOA Jnoj JO IlJql hluO l WJld Ol Sll UOSlllS

UOllllSjAllU Illnuull lqll WIOS 1lSllIV UJllSl1jO SJlW M lJlA lS pUll SUOI lll

t lpllJl lWllS lql Uj SJljJJll Jlqlo IlJql ql M UO l lldwoo llJ P Uj pllllJOOO SJ1I WllqSUjIlG PUIlIlql lg lWON SU pnlU 1lS1l1V UJllS l1U SlU od pUll UOl

SU qsll1 l1l1lllS uIlMlaq uOjl1lJldo l8Jllq pUll Sm IIlUOSIllS 11 S OO AJlS sayd

hTnT lWW Yl IIArr 1 1 1 W lVI IOf f 00

tpayton
Typewritten Text
88
Page 103: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

f

OL61AN a M 1 1 ddnS 1 8t tSillDIS pallun 01 JUJ SiJUn tpooJ Pl U m fl s t6LZE sn 9t UOfSS twUlOJ nlOl1D1 UtJUltUo

uapa dlo J olpoU J1 mqlsJ SJ IJel RlJ lXlwoo 0MrI ll U SUIllQt Ml1UOOWOO tl nNJ X paoli 81 wn

UJ811xl J pun 11UP ptoq pu8 J ql0 ll uo IRq tt6I EOt sn IZE 0 1 tsoqt1At tl SiJlDIS P fUfl U lTU11 J1IWJOJ JOjVOlllnl S IJll Wl SJ ql0 WOlj UOSJ 00 1RO I OJ nIJ s US8 u0l81nbJ 8 18111 PJOlI pUllq 00 q1 110 q qA dosonqd

IllS1 l qlOOWOO IRq BU ooddo UO i1UJ oU P JO UO11npDJIUJ qtq pgiuOjOJdq P1ROII j UIalOJd xjl1tll1 SJ loqsdnUOU ooaM 00 Q1 Ape nM 1Vd SJOl l WOO S 1Vd JO s nm UlJl1p ql 8u p BpUBJotUlW SWI pIS JO oo

JO lsanhlJ VIOd Jl unJ 8 01 uodsuuI UO11l8 l5AU lROql ll UO SSfWWO 111 q JJ OlUJ oS OJ 1WMIugq lmOaJd

pUll lptUl uU UJ SJOllXlwoo s1Vd JO SQl9J lql uJ pn ulew JiIWS O oUJ 81 JlBJ xjl OJ UJaz ou 3Bw 1SQnNJYIOd ts s i rsn s PY UOlleWJOJUIJO WOPCJd e qSnoJ1l1 JUJtl1qo seq q 6L61 II ew J lep LE6 ON wnpu1lJOW WSliI sP1S 1U ll q d pooJd ql 0 uopnlow ql pue uOlle8psallSql jO 1 nbJ ll uodn SJ OSe qOJquopsmb e lpeJl lwes lql U SJIfJJeo 8upKIwro q lJoll 8J jO UO SSJWlKQ lqlq lU1Wle IJllU3lSsuroUJ O UO lSQnb Ill S

uopeSplql 011UlU 1JKI SJI11ew Jlqlo 8uowy J le8PI Xl 01 AtnI Plno1I q KISSA1110 Il llOUS JoIOpoql W 0Q oqspnoo 1111 01 UOI p leql ItIKIdtl 01 JXlnKIwro IQ Plna1 Vd 01 lq1lJ0AeJun 11 1 Uorspp eUIJ1ln suO lSJWWO

ltp p leql Jelp 1 pew Vd 1UlW AU uo UJR1U J PJejO IlA l1 1 uodn seq 8oJOpoql1W qons lp q pedUIJ tpjOlSTlllOlqUO l PPB uI 8u d lql llIIlSSJ JXll luro AllOt e IQ 01 IIlUpuro Plnopue se8010p0q w uOH1lOOIIB jO JI11eW ltUs

lU Wl AUJ n uo UJR1U llBnbopB WOJj Jej e t1 VeI lABIj1I 1lI PlnolSeuoU ll1U It1 Aq pglBJlu l8 lnUlA IJ Itluo1 PPtl Itllet 1 SIA IIQ Vd Vd Aq pxnodsl 80lopql1W It lJlpun

lAUq lIUlS lql pUU lVd llAIlS lql U lVd Aq pIlsn lUlwd noo lql JOJ SlSOO

IlSS lA pIlXY liulU lOIIU JO poqllW JOOOJd lql S lUqM JO lnSS lql uo IJlllS lqlpUU lVd UllMl lq llU lJlllP lJqUI lUXYlJJ uu lq Ol Slnu luoo lJlql l11L

N3W31113S dO 13 0 10 NOUVHUSflf

lUllJOO 9 JO lSUlJ lU llUJ pIllsnfpu uu

II SllnSlJ pUU lSIllJ lU llUJ S lVd JO uOllnpllJ v lU S Z Aq pIlP A P Z 8 lE9Z6 1 JO UO pnpllJ S ql llnpoJd Ol pIllUInlIU lSllM lSUlJ lU llUJ lql qlqM

lnUlA lJ JO lUnOWU lql pUll lIUlS lql Aq JYlZlln UJnllJ JO llUJ pUU AliOIOpoqllWUO lUlOIIU lql JlpUn lnUlA lJ llquMollu JO lUnOWU lql IIllU lJlllP lql JO JluqlUO S lUql Sl lJUd lql UllMl lq llU lJlll P JUIIOP lql JO J1uqlUO Aq lSlllJ l1I

llUJ lql Aq pIllUJlU lli lq Ol pIllUW lSl lnUlA lJ lql SllnpllJ lUlW lJlllS JOJlllO S lVd JO lUl pIlJliU JOfUWlql Sllnl lSUOO qlqM punJlJ JfluqIlOJ lUlU

lSUlJ l1I llllJ lql JO punJlJ JfluqIlOJ U JOSUUlW Aq SllU lJlllP Ilql llnlS pUU lSwOJdWOO Ol JYllJliU lIUlS lql pUU lVd

UO lUli llJO lWOOlnO IUUY lql JO AlU UlJllUn lql lAOWlJ Ol PUUlJOlll UOluli lllA SUOOXl pUU IUlUUlsqns U lq PlnOM lUqM P OAll Ol lqlinos lp S qlU l AliOIO

poqllW UO llllOIIU Ol su uOlsod U SllU lJlll P llqUI lUXYlJJ J lql liululi llllInlll PlnOM qlU l qlqM SlSOO lql uuql SSl1 JUJ SUM pIlAIOAU lUnOWU lqllUql

liU Z uliXYlM Z 8 lE lAOqU pIllOU SU SUM Wlql UllMl lqllU lJlllP JUIIOP lql

l13ql JYllJllU lIUlS lql pUU lVd SUO l13 lOlilU JlqlJnJ lSOql JO lSJnOO lql UIlJoddns AW ql M pUU UO sAIOOns AW JlpUn pIlnlllUOO pUU liUpUlq lql JO lUlW

llU lWWOO Ol JOpd lsnf UlJfUlJ lpUn SUM S ql lUlW lJlllS lU lJOlll JlqlJnJ U

llUl U Ol lVdpili lIUlS lql Aq pIlAOldWl AliolOpoqllW lql JlpUn UlA l lnSS lU

lnUlA lJ U llU lJlllP JUIIOP lql JO liU MOJJUU lql AlioIOpoqllW Ol su SllU lJlllP

llqUI lUXYlJJ puq lIUlS lql pUU lVd lUql JUlIl SUM l qlinoql UlA3

IU lUlJ lllPlUllJOO 1 U pUU lUllJOO 6CzIJO lUlWlS lAU uo UJnllJ JO llUJ pIllllfOJd

U llnpoJd JJM lSUlJ lU llUJ pIllsnfpu lUllJOO 9 lill llnSlJ lql 9Z6 1 lJlW

U Ol llU lJlll P JUIIOP lAoqU lql SllnpllJ qlqM lSUlJ l1I llUJ IUJlU lliplSodOJdSl JO punJlJ JfluqIlOJ lUllJOO v lU pIlsodOJd suq lVd lUlW lJlllS JO JlllO Sl

UI Z 8 lE JO llU lJlll P JUIIOP U Olll SllUISUUJl SlJnliy lAoqU lql lill lUJudlS

11l lUlJ lll P lUllJOO fO l lql lUllJOO EfI S lUlWlS lAU uo UJnllJ JO llUJ

0 v II n IV lVI n III In VI VlV

tpayton
Typewritten Text
89
Page 104: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W II

1UOUQIOAUJ go mOJ JO 0111 I WilluJllllOfV IUWW JOdoId Iln IoJOPOIIOW1Yd P ldWJ llIJ1I OU J9IlI1IOO Il1 jO lJO 11111Juopuo 8 111 IJotopI11ow JIIlS111111 1 100 JO 1Yd IUl1lllII11II JO Iiq Iq 01 JlIIIIIIIUl 11 I oIoq OlI nqlIoopo1101D JJdcwldII11JO IlIIIJ II Jdl nqlloJOP011llD 1111qInolp 1I11111O 1IJOd 01

ID IRq lJIlS I11l l1o1A1oJ lInc1lJP 0 Ul 01 plIIl1l1lOU Vd v l1I lOP VI

Ul 1111 JI 9 lOJ pfoOld 6L61 ttlIIlInvl lJO SI pUl LI ION d lId J III OIIIUlUllJddn lIIV p8IlJI nq 1Yd 1II JO lOpIII JO ooU1UllpJl1J VI

I

lUOW1SIIfp1lllljl WllIJ AIOlI poWlUJ19oUoq n AOljllOll onoJOII OllJ JouoS potIOCIoJd l lV U 1l0lllnOJ lUlOJodt l I pIOlueJlnloq IJOA1ICIolIJ Q80ljl IJA AUO 109 poPO I AlIOJOql II UOllIBnn pO p8llIOOOI I lUOWolllOl JOJOlJO 1 1ViI JOAOAOq J Uop88ln I ql JO IlICO Oljl JIoq AIOlIlD110 P1IOA PIJl1llnty UJOl80MOljl II WldOllJ OljlllqllqOop Olllloq U80 OJOljl JOljlJOil OlodlJP U lunOWV JIIOP BUJUJlWOJOljl poooxO JlJ PlnoA UOllIBnn JO IlICO Oljl POlOU nq lVillY lgoUoq onllnd lU1ll1llulJS I OOOpold109 PIOOA UOpdJlBOAII lU080Jd oljl U OWJllJ1lll PUI PunJ UO SlJlUwOO JO OJDllPuodxo J1luOJl Pp1IllljlJOnoq S I08unO8tqnIoH II 1I 19ouOq OlllOd wOWJldo oql OOOpoldOl n 01 POl1llOlI oq P100qsIQOJOOlOJ POl WJJ 08011L POlJWJI OJI Dill PUI IpUnJ JO BUUOl II ljloq 8OOJDOIOJ I UO BlJWWOO 01lL

SUJ1lIdXQ IQSUnolJUpllClH mAlldCllllJ OlllJClUCIo1qndII ClpOJd ClUlJl ClWllS CllIllll pUll UOIlll l1 uun JO ClSuIldxCI CllIllJUJPJOAllUJ lInsCIJ PlnoM l ClsnlllClq lSCIJQlU o1qnd QlIl QAJCIS PlnoM lJu pCICIOOJd CllIl JO

UOIlllUJWICll pUll JQJJO CllIl JO CIOUllldClOOllllllluomsod S IClSunolJupllClH 81I

JJlllS CllIl pUll IVII JO SlCIlJJlll QnUClAQJ CllIl UCICIMlQq CIOUClJQJJPClll UllllClJOW lOU J Sll lIonw Sll Aq SlInSCIJ PQlllUIJlSCI CllIl WOJJ lJlldClp

Plnoo SlnSCIJ IllnlOll CllIl QlllWJlSCI Ull AIClJQW Al SSQOQU JO 8 OYfClJl rOJdClllOOUJS SJQUJlllUOO 1qS lnoqll AlUO JO QnUQACIJ ssoJlJ ClllSlOCIlfCIJ tS8 IESQn8III lUnoWll JllnOp ClJ lUQ QlIlllllll UllOS 8 Cln8III OYfClJl ClllJO Al SUClP

QllPJllL CISllCIJOUJ QlllJ S IVIIJO SSQUCllqllUOSllCIJ CllIl ClU WIQlClp Ol lJOIOpolIlClW lOQJJOO QlIl 1 PICllIdn AICllllWlIln CIq PlnoM AIUO SUO snOSW lUQWCltnOS

JO SCIsodmd ClllJOJ JJllWlOUCIq II Sll pClAOldwCI UCICIq Sllll 1I0lM JJlllS QllAq pCIZ1Iln AlJoIopolllClW UOIlllOOIIll CllIllllllpClIllClS SUllQW ou Aq S l PUOOQSSSQUCllqllUOSllClJ JO ClUOZ II JO SWIQl UJ JCllIlllJ lnq Al OJOlldS lIl M lOU SCIlllJ

JO SSQUQlqllUOSllCIJ Cllll JOJllQds UOlJO Il8WOUOOQ pUll SClPUQlJll AJOllllnlJOJ SlJnoo

CllIl AlIM 8 lllllCISJlJCIXO ClSpClJdUIJ Ull AlUJ1llJOo S SQlllJ JO SSQUOlqllUOSllCIJ QlIl JOUO lllUJWIQlClp AUll lSJ1I slOIldSOJ Jll noJll1ld CICIJlllSllQIlll UJ lUllllJU S SJ JOlOllJJClnUI Sll IVIIAq UCICIS SV UO llllJIl1JO AlUJlllJCIlun PUlllJOJJCI lSOO OllUO SSJW

woOlll pUll IVII JOJ SCIlllUJWl1C1 ClJOJClJCllIl SJSllq pCISOdOJd Olluo lUQWOInOSQlndSJP UJ lunoWll JllnOp lJUJUJllWOJ CllIl poCIOXCI JllJ PInOM A11llnP APUJ UO S

SJWWOClllpUll IVII Ol UOIlll l1 JO lSOO CllIllllll Qlndsp ou oq UllO OJOlllClAClI QnUClACIJ

CllqllSSJWJIld CllIl JO sSCIOOm AJllSJClApll CllIl UJ lU od SJlIl III PQlSCllun UOIlllInoIllO SJIlllS Cllll pUll CISllCIJOU ClllAq PQlllJQUQlJ QnUOAQJ CllIl UCICIMlCl OOUClJClJJP

CllIl 9t6 S 1 Ol JIllll Aq CIOnpCIJ 11M Sll9 lUCIOJIld 9 S Ol lUCIlJIld 0 L WOJJCISllOJOUJ OlllJ Il JOllq nOJ Ol pCISOdOJd Sllll IVII JOnIlW QlIllltnOS o UOIl1l l1S lIl JO l ClWCllllClS pCISOdoJd CllIl JOJ S Sllq CllIl SWIoJ tS8 lES QOUQJCIIDP IlllwS

lllllCllllpdoJddll CIq Ol SOACI1C1q JJlllS CllIl 1I0 lIM lJoIOPOlllClW UOIlllOOIIll lSOO

ICISSOA pClXlJ pUll UJnlQJ JO QlllJ Qll OllJUPJOOOll pClllllno 110 CllqIlUOSllCIJ Sll MOI1IlPlnoM JJlllS Cllll 1I0lM QnUQACIJ IlluoIlPpll JO lunoWll CllIl pUll CIOnpwd PnOMCISllClJOU CllllJ snvII 1I0 lIM ClnUClMlJ 1IlUoIlPPll JO lunoWllllllUOCIMlClq QOUClJllJJPCllnlosqll pUll ClAIlllIClJ IlllwS II lnq 8 ClJQlIl SCllISJlqlllso UOIllllnolllo lllll

CIOnpwd 1PM ClSllOJOU CllllJ Cllll 1I0 lIM QnUClAClJ JO UO lllnolllo CllIl UO lUClWClClJill IllJClUCllJ pCllIOllQJ

tpayton
Typewritten Text
90
Page 105: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J I

nSS JO lmw 11PS 1fl JO SQOu JUro

PIOQ 0119Ott188 AliI lIe1llOS 11 Jll 01 p uJU8 gp JOWO OlfL lU1MO OJ ge 1 AOJd l eLtl ZO I H I 9tI

l I Iftllt6 QjRlI 16 Zos i JQplJn lUOWQIlPll Aue

8U J PSUOO JO xbnd 011 JO souaJoJUoo SuPtQq ud aJOW JO HIO pu tle Ol lOU UOl1J1l Aq SQ lJOO pl U flU P llW

J Wo SlfPISQJd JOUOlss wwQ 011 SUl1t q AUU 01JOIJd

l ltrd lUOlflJXI u1 SQJ OJd 1 1It6 W fi ll 9t 1 1It6 0111

lUOWlsnfpll 0IIltlOdoJd JO1U WlP9 0 SJoDo lmlwnin SP1l 0 uOl1lJ SUOO pII1lUo ss wqns 011 JO Al UnlloddO ql OA81 nutp rl lIW ptllW U 1111 lUUxIl OllI o1qnd ltp pUll ju d 011 0un eu olp

Wl OJ M 1Jtld lUOlflJ u1 P OJd 16 zos fi lI 9t unpGOJd pUB IO llIUd JO 11111 s uOlSS WWOKIt O 16 Olll1l6

tZ 18 Vdns StZ ON Kl S

SQ IstU01 l rlpuo811 011 q lUowdolOAP OllPI S samJXtOOld reWJoJU 0omlBu QJd lQ1

18tH I1ou Plnolp 11 suo Julndls JOS1 WJS8 SOO J Juoo 1I8noJll1Joo U 11Usmrl jO asodSJp 011d n8 1 18lUl ilf

llW 2tp 18tp 1JOO 3J8 JJd pll 01 MIMI puu uuu lBJ1SUfUlP8 MIl U2tpJ JlS qlOq pJnoqs SPOll12W IUlWOJU qms JO

uOl u8oloJ J011l18111 2111 18Jll1 UWpy ql jO JKlOIq2JJ 1 lnJl 2JU puu uo18 pnfptt l8J1S U Wp8 jO lInq 1S8

2tp lm lSUOO Jnp ocud I8WJOjU JOJ d Mll8Jll1fU wptt ql Uos oil OJ uosnz uowq mwSJ uU uoIQ8J 18l 1 U Umq

J l l JO l onw JO SJP sSUJprQQOOJd J8JJllUd qjnOJql S1JTIOO UM3 npglOld 8UJl l 18WOJ lUOW 1Il8U 81J Pun Ojq JJ1ld U JO

3JOl U 83S8 jO 1U2W2PP9 18WJOJU 3ql l1JlJ2pun 01 JQZJolpnu 3J8 lJOO puu SB Ifl 11Jud 01 lqUpu B uu sun d

UOISJpPUB SUJB3l 18WJOJ 2J q U2A3 18l 1 pfOJd 1oy aJnpgooJd lUIlSJUIWpV 3l 1 jO Ot UO 00 q uOl sqns

P01UlS 11 WWO oUBppnr BU2S 2l 1 wdns 3Joo m 10V lInpgooJd lBIlll UWPV 3ql

jO O t U lSO 13J8U1lln qO IM r61 SSOS lS1 SUol 16L L s U UO sOJd lUOWOIUOS Oll SuJOJl SUOO UJ r61

iCi mS PZ SUol 16L Sri ON 00 s J01SJH 2Al8ISJ 10V unpoold O l8J1SJU WPV wwo J8Olpnr 218

lUlwAlld UOlIlJlld lJ WOJdWOO II JO S Sllq lql uo slIlIfpxYlOJd lA lIlJlSlIfWpll

JO SlUlW lIlllS JXZJoqlnll Sllq UO SS WWOlql AlJod SNl JO YlUllJ lqlInJ UI

EL61 LPL PPL

J W d LI sau7Jl1UU W 1 iJUJIOa l dlul S 1JliJJf AIIIlJlU lllAl PJllA pUllSSlUl lllOO SslUJ IlJ J lql SJOAllJ qlqM U XllllnpU S uOldwns lJd AIlA l pUll

SlUlW lIlllS slllIlJnOOU l lSJnOO JO Mill l1JL lllqllUlW lllllS AlJod lql ql M lITU

lql JYlJOJU lJ pUll 6llnJ Aq llllPUllW Sl XllUlW lldW Sllq UO SS WWOl1JL

PI lSlJ llU lJqnd lql ql M llqllldwoo SPUY AlU lllll llllJdOJddll lql qlqMUMO J lql JO llnSlJ II qlll lJ Ol lJqll lJll Sl lIlld lql lJlqM SlS1ll lSoql U SlIUJll lq

IllWlOJ AqlllUl1 pUll AJlSOO UllJO JOJ poou lql llllU lllIlOl S UO SAOJd lUlW

lIlllS IllWlOJU lqlJO lsodmd lIOqM lq l lllql XlZlSllqdWll Inool1JL U61

JD J O LPn LPLI PL d E9P U01SS1UJUJOIiJiIIOJ lUliJPiJd 1 0 IiJ1uM l

suo U1UUIt1SUUiJJ 8sSYlOJd lA lllJlS U WPll lql JO lIlIfuo punJ lql Ol YlUlll Iod

oW lSll1l lJlI lql JO lIlIflq Sll AIOlS q lA llllS lIl1 Sl pUll uo s oJd S ql SlA YlJOO

l nlJD llNwnloJ JO PJlS O lql JOJ SJlloody JO lInoJ slllllS Xll UO l1JL

1 WJod lSOJOlll lqnd OIl pu sllllplOOOJd OIl JO OJnI U OIl 0lU1 UOI luowIsnfpJO SI sodoJd JO IUOWOI11JO SJO110 SluownllJ Sl J JO UO I JOP SUlYl pu Uo sS wqns Ol Il

JOJ AI Unpoddo soJId polSOJOlU n OA lljlls A uoll 0fL

Slp AOJd qlqM 1 l P SJ S O py lJnpYlOJd lA lIlJlSU WPY lql JO lq uOllS Aq XllllpUllW AISSlJdx l 8slIupxYlOJd l lIlJlS U WPll JO lUlW llllS lJrlS ollqllJ l1JL

slIlIfpxYlOJd lAlIlJlS U WPll JO lUlW llllS

lql JllSOJ AlJod UO SS WWOpUll Ill lpnf lA llll8 lIlll11ql XllllS lllM 8 n

SNOISnlJNOJ aNY NOIssnSIO

IU1llYlull s OIl l smoddB olndSp lI IUnoWll

J nOp llllurewOJ OIl ll WOUlYlO JO uops OIl U IUOJOI U uO S lOJdw OIl II pojdnlYl Sl nSOJ

POJOOfoJd JO uOl jn 1ll OIl U po O lI Al JIlSSOOOU JOJJO JO u llJllwOIl UOAID SJOureIUlYlJC s InoqBA UO JO OnUOAOJ SSOJll OIl SlOijOJ S8 jE onSSJ IB IUnow JBnOp OJIUO01 1 POI pU SIll lV

sy lVAq s pomwns s unlly OnUMOJ pu I poIlOfoJd OIl JO UP XOU OIl JO InJPlI wSuno lluIOH llu plOOOJd S lllI po jO lI AOuow JO lunoWlljllws A O 1 IOJ OIl 01 uO1PP ul

TLC J JII T1 Jl1 T I1M 1f 01 10O MI lMIl VJ IVll IIO

tpayton
Typewritten Text
91
Page 106: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

lj II

9E 18 lSPlIUn OlllJO IOUItJ JUOIMI1 JllfUJWPV lJoda1l8L61 I

qW ro JO 111JCl 111 OJ V JOUnoIOllnSJllUn Oql JO dpnr 8 MOU l8qlUOAQ1 PI 8H No 1000unoo lU11AOW 11111 Ol JJIOJJOl8fQ UJ1 UI H II

tm Ltl111 Jlt d tilt 00 IWI OQ I1qIOOIOId JOI lI P 1111 1111 IVOO IOIJ110 Ip pIOdoJd p 1ffII10IIII0 IlOO 0 BlIO lICIlq 11l1 00 111 1l1RJ 1uj 1I

JJI1I OQ JO uoppoddo IuJPR OUJ I InOWJU 11111 III 1qJlIIolwI11 JO WlI1I11 pIIOCIom IeI 01

ouohAl0l8Jftl1U JOPIIP 0111 ppqdn IUdtu UOl1unuoJ JlMotl PUPI 0 DAt P D JllfM 61lUIc UJ UftOO oqJ 01

o

i

E96l m v6l S O ELE MolsSIU1U10JaMOJ I JapaJ It U1SUOJS1A1 lJpoglOJd OlIlJ Il OlIlIJUUOl Ol WUIlS

wnoqo lllqM JQPUn pUll JQqlQqM U1U1WJOlOP IJ U01S8JWWOQql Aq JQP1SUOOgq Ol JOlOllj OlIlJJdOJddll UIl Sl OOl SIU QSlO OlIlJ pllJQAOJlUOO Il jO UOllnOSOJ IlWJOpOj pggU Qql lJ llllAqO Aq IouopUll QWll Q qIlJQP1SUOO QAJQSUOO

Ol JIIllS pUll U01S8JWWOO Qql SllWJod JQlJO Qql Ol QSuodSOJ S QSunOO UPIlQHJQAOOJOW uolJsod III jO AllPlIlA QqllJ jQlQq S QSunOO uPIlI1H IJUOpullqll

AIlM AUIl IJ lnotllM SQnsSJ O opoqlQW luqOOl lnq lUlllJodWJ jO PIlQqlllsaJOlUl s llqnd lJsn Qql lJoll d Aq OSSlOp II pUll QAlllllllIltO qlsuodSQJ s1V dOl QlUlllS1SSll lllllwBllJd SJQlJo QSunOO UJJIlQH Aq UI1AJ lJoddns ou 9vl Illl

nd E9v Jdns uOlsSUlUlO JaMoJ I JapaJ 0 Jal A1 F s D TJJU ltltsuuaJWQqltllA IUP Ol QlUQlodwoo SQllUQ 1l Qql pUll UOSIl1J jO spunoq Qtl ulqllA

s IJ Jd MUQ 1l lJupq jO WQ qoJd Qql qllA 8UJdoo ul lUQw8pnf QJnlllW

pUll punos Il SllOYaJ 0SJ1l IlsodoJd Qql jO lUQWQSJOPUQ S QSUnOO 8uPIlOHSJQwnSUOO pUll SJQAlldQlllJ

Qql Aq QUJoq gq AIQlIlWJl n lOU IIA pllIlU1WJIQ Qq 1fA Al1ql asnllOQQ UOIl1l811ljO SlSOO lluolllPpll 1l11UOlod QU QOl lYOUQq JJQjOp Il SJ aJoql lno plllJ odsllq QSunoUJJIlOH BY punjaJ Ollq nOJ Qql Aq pllYGlugq AOlIlIPWWJaJll SJQwnsuoo pUll SJQAlldOlIlJ Qql snu SQSuodxQ uOllll811l Aq plwnsuoogq pnOM QSAJQqlo qOlqM mQJolJ OlIlJ JQua8 Qql wOJJwnlJ POllldlOllUIloql jO nil lOU J lJIld QAJQSUOO Ol AlUaJJnO JQpIO Ul SOnUQAaJ IJlllJQO JOj pGlQUP A1GllJod Il dn lAJ OlJQlJO SIlq IVd UOllll n8aJ 0l1lJ Ol qOIlOJddll QlqlsuodsaJIl IlU JdQJ pUll uOllllnlls llnoIJP Il Ol uOllnlos QlqllllnblUIl SJ JOlJO QU

IlAOJddll SlPQW pUll lsaJQllJ olqnd Qql UlSl lUQWQnQS jO JQlJO Qqllllql puy I PlJw IJ SQldJOupd lJo QJoJ Qql lU1A

luowmilu q WOljl omos Ol SIlSIl

OlUJ POlJOAOJlUOO OlllO lJOO Olll oilwnoouo PlnOlj8 lmq 8Uodm ilup1lWOlUJ Ijl ApoilJuljo llOOUoily

tl pgPUQwwOOQJ 8L61 8 L QUne

Pldopll uOlloll AlqwQSsV III Aq qOlqM SOllllS POllUOQql JO QluaJQjuo QAllIlJlSJuJWPV Qql jO Mlod Qql qllA lUQlSJSUOO SJ s8up iQ xlJd QlllJ jO lUGlWQIllOS

11 E961 plJodQJun apoJL sPU lsJ u8J1A S 1flnD Jl1U IW all Ul sal HUl STJaJJUJ l JauaD JUJ1J fuoSTJU lIlD l sPU lsJ PJTJMPU1A1 l PJTJMaa890 I oN lQOOI SOlIlJ jO OllqnOJ 1l1lJlld 11 OlllnlOOlJQ Ol QSJwOJd S JQJJJIlO Qql

UO0

QSunoUPUH Aq plsoddoun UOllIlBllSOAIJ OlIlJ IlJQu08 Il QnulluooslPOl uOlloW Il 81JlUllJ8 lUQpGlOaJd uOlsslwwOO sl QJQql A JlllnOllJud QJOW

6L6I 1l9E 1 1I11S 81 aJ1A Jas flsudxg iY J11U I1Y It sl IU1Jal J1U al

8L6I 801 IDlS 81 JUJ aJ1A JaspurYJ as It 0 ITJOU 11PIO 8L6IvvL

IDlS 81 JUJ saul7 dllsw alS la It JUJ 0 Jaqtun7 uosulqoH 8L6I619 1I11S 81 n aJngff1l L U ISTJI JlsnY IS O J1f13 J It UOl1 JodJoiJOISJad J O UlOJ lOV8u ddWS Qql jO UOllll OIA jO sBUIPUY jO suolsslwPlllUgsqU

flJnTct1 lwwnlw tnrvw l IIn r 7

tpayton
Typewritten Text
92
Page 107: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W J lZ

J PJO SlIl O Ji l J 10 aZ ZO S lI r 9t LZ 2lnll q palSlq 2W1 Kfl

U Ol S 01 J nI1 l 1l JOlpSUOO UO SS WWOtIn tEll Pl nns S 11 S1U9J1SUOO w1 tl1 JOml Jl l MH S9 I ntlpooS JO8UpAOQS JxJoJd 11 stl Ylenb lUtw ljnas q n lJ OJ1UOO J I J olldwIllu Ipy uuoq u q uOWOO ujap tell s 8Sns put

skep 09 q UO 1 2 UOS9 WWO10 popld awp l 81 1111 pu xa hew asnel pooS 10 pUllUO laJlSp S1 ll UO SS wwOJ l 1l11lll

BUnOll ool1 5OO SllftSlJoddns lasunoSUJmlH sep 081 ueql JtllJl s1rp OtZ U l l Nl JaUllW nll oUO S p q9ll1tln 01 UO rqoou lIq PlnolVd JDo al llf 01 2M UO SS WWOaljlJ ltlll glB1S JajJO s V 61 PV 8u dd l S rB1SeOOJnuI OlljljO V

PUB SUO l801 SlUlWPU2Wll SLt S6 MB olqnd Uol llItq tJQl S lqulS3 lqUU1SUOO UIll UnplO lJd mllJo UO1 U8oJuI I

9tZlltl PZd

Elt DJdn U01 IU1UlOJ aMoJ fDlapJ 1 0 JilDM V SOD V UVI11suuiJ sl l l ed qlllB uo BIIfPUJq JQPJo UB JO OuBlSQns

Ql l WJoJ lUQWQI11S l l JO SWJl Qll UQll uQ88 JolBln8u Qql q QlqBln PUROJ liB SlUQW1lX UO1BU Wl X uo J I I

6L6l l Isn2nV

a8pnf MV7 ai1VJISJUJWPV

1I3ZNV1D lIflOWA3S S

panulUO S P S llUplOOOld lq

1 palUlllll S llU plOOOld S ql llIlU Wlll Ol UOlOW lq VUO SS WWOlql WOlJ IIlAOlddll lOld lnoql M UOSIllS

UO llllllAllU Il SlllV UlllS lAUOlllu qSIlA llHlllS 6L61 lql llulnp paSIlll lUJ

llOU 1I1lqs 6L61 VZ lsnllnv lAlYl yl lWIlYlq qlqM 81 oN IJl1l s lVd

Ol r ON lUlw llddns pUll LI ON Ylll s lVd Ol r ON lUlW llddns rlUY lOO 9 SPlr Xl qlqM palYlI

10 Plllllll lSIlll lU lllll IllllU lll Sl JO UO llod lIlql punJll 1I1lqs Vd Z

paAOlddlll lUlW llHlS JO llyO I

lllql IpallplO S l I21U PlXYlV

Ci V 1 1 I V IV mlOJO J 1NI INn V V1V sso

tpayton
Typewritten Text
93
Page 108: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W zz 1 6

6L61 dV nIllVP IJlI1I01OV lJ1 11IO lUOWll1lOS II

lUClpuodsoll q1JMW1I10 Cll1J1IqoJClAO J1IUJJoJUJ Sl pClfJ 1UllllJ1lldwQ 11lq1 Cl11lp Clql 8L61 E UJdyWOJJ SU ruOO1l 9 111 UOp1lJ1IdClJ Clq1 UO 1SOJCllUJ JO PJ1IM1I UlI AJl1snf Sq1JO S101IJ Clql11lq1 SClpnloUOO UO sS wwQ ClU L961 J 0 0 L9 n d L

U01GG1UJUJOaUJ1t110N 10lapa I 1JUOlqUJolo3UolD aluoJlaN 0101UO SSJWwQ Clq1 qllA AJ1IUOpClJOSJP S SUOpllJ1IdClJ JO PJ1IM1I CllJ1 lSOJCl1UJ JO pJ1IMY

UO SSJWwQ Clql 01 JO

1UllUJ1IIdwoO 01 JClq1JCl ClpllW SUM Cl11lJ SON oSJlIO Clq1 JO UO 11lOldd1l Clq1 JOJUO 11lU1IIdxCl ON 8L61 JClqWClldClS PU1I Alnf Clunf U sSUJo1lJl1UClnbClsqns ClClJqlS lUllUJ1IIdwoO 01 PU1I 1 8L61 UJdy pClfJ W1IJo ClSJ1IqlJClAO S lUlIlIJ1IldWOO 01

pUodClJ 01 pClJ1IJ lUClpUodClll UOp1lJ1IdClJ JO lUnoWll Clq1 uo lSClJCllU JOJ w1IIOs lU1I1IJ1IldwQ JO J1I UClP S JCllQJO 1UClWCllllClS Clql q1JM JClAClMOq ClClJSlISJP ClM

UO SJOClP Jq U qlJoJ 1ClS SUOS1IClJ ClqlJOJ SUO 11lJ1IdClJ JO PJ1IM1I sJq pUll JCllQJO 1UClWCllllClS Clql JO uO snlouoo CllllWl1lClq1 ql M ClClJS1I ClM LL61 ll AJ1IruqCld uo SCllllJ W3 qllJV pCl1 Un 1IqnO 011IU1IAIASUUCld 1I qdIClPllJqd wOJJ 1UClpUodCl1l Aq pCllJodSUlIJ1 JClqSUM Cll1lJO ClS1I

JClAClq 11 JOJ SON AJClUJq01lW JO p1lCl1SUJ snoPJUZllquoN SON oSJ1I0 JOJ CllllJClq1 SuJSJ1Iqo Aq 0 60 1UllUJlIldwQ pClSJlIqOJClAO lUClpuodSClll 11lq1 punoJJClOQJO 1UClwCllllClS Clq1 PU1I pClSClIl1l1UllU 1IIdwQ lUClpuodClll pCl1 Wl ClUJloJUClIIClH wOJJ 0 60 JO UO 11lJ1IdClJ pClPJlIMlI SUM lU1IUJlIldwQ AU1IdWQ

SUJn101lJnUllW UOlJD qO qM U 6L61 1Alnf pClAJClS JCldOQIClWllf JClOYJQlUClWCllllClS JO UO S lClp Clq1 JO MClClJ 11 UClJf8lJClpUn suq UO SS WWQ ClU

661 flaqUJaldas

1I30IddO LN3Wtllll3SdO NOISI030 dO NOUdOOY lVUlIVdI

Gill IWIlSINI l INil11i1H

I

ANVclWOO ONllIfUVilnNVW NOllI10

I 6 ON l iIlIOQ 1VWlIO NI

NOISSIWWO3WllHIVW 1Y83QtId

Page 109: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

O

OIlOd C C

tflVliJ lJiJSA3N H OJ SINV d S

UO SS WWOJ lql AgplnUnUOOS p S llupllOOJd S qllll1JL amI3aaO a3H af1d SI n

pUll lpllW S lUlWAlld IlUn SL61 IpdV WOJJ llu nJYlll 9 11l

plpJllA ll S uOlllJlld lJ lql uo lSlJ llU lll1JL a3a3a aO a3H af1d SIn

pUll pllll l PU Sll ldooxlplldopll S Joo110

lUlW lIlllS lql JO UO S Ylp lql lllq a3a3a aO SI n 3ao Ba3H

tpayton
Typewritten Text
95
Page 110: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

nl 1 ZZ 96

OJOAlQIIl aoJAIOI O O1Jp 1 w J 11tp Ot lIJlJIJM 11 NJAOI 01110010 UOJIIIJWWOoql tunlug oq In UOJ8OOP ql popUOWI II tOE IOEto 1 lI d O 8Jnpooold J1IUIIOJUl oql III POIOOO luJq 1J8d qlOll

8L61 61 J wlldQS pUll 8L61 61 Alnf 8L61 9 lonfpll8P slIu 8Jl Ol puodSlJ Ol pll8j PU8 6L61 lJdy uo pl1Y 9t SZ8 WJ81

lllJ8I JlAO Sl Ol puodSlJ Ol plJ 8j lUlpuodS lJ lIl pll81S lU8U 8ldwoo lIl

lUlW llJlIy ll811 0068lIl Aq plI snqnd Wd ON lJI8 jO 9 Wlll Jld SON AJlU

q08WS8

lUlwd qs lql pll8J lA8q pJnoqs lUlpuodS lJ lip l8ql Sll81S lUllUJ8Jdwoo lIlJ WlW lIUjludp P8d 8 S lUlpUodS lJ qO qM jO lUlW llJlIy ll811

0068lql Aq plI snqnd Wd ON lJI8 jO l WllI Jld snOPJ8Z8qUOU SON

01lJ8Sll lUlwd qs lql pllllJ lUlpuods lJ lql 18ql Sll1llS lUllU1lJdwoo lIlLL61 qJ8W uo

lU8UJ8ldwoo lql Aq p1ld lJlM SlllJ8I o lqlljlJj lq 3Vn 8qna jO pod lqlOl plAOW pUll yd llI dJlp8J qd l8 JlSSlA slu lpuodSlJ lql pJ80q uoplp80J 88M

lUlWd Is lIllllj O qno 06tplJnS8 lWPU8 sqJ09tt jO lqll lM II p8q lUlwd Is

lIlLL61 AJ8nJqld pll8P IOO d J WnU lIUJp8lJO mq JlpUn JlJnll O UlI

JlH JlSSlA S lUlpUodS lJ lql UO plAOW lUlWd Is lIl JlI SIlA 88 lllIlJlA gll8J

IS811UJp8J jO mqlql uo jJOSlp lUlWd qs 8 UO lllJllqOJlAO plll lnllllJOj

lUlpUodS lJ pll W SlUn Uln lH WOJj uOjl8JudlJ 88 0 60t SWJ8J8L61J OlQpl1Y WJ8JII U lU8UJ8Jdwoo AU8dwOlIUjJnlO8jnUllW UOlJlD

papJOMY UOI10JodaN

6t6T Jaqumdas paldopy tCU011JOJ

1I3IddO N3W31ll3S 1I3dOOIS3WYf dO NOISI3Q

alUIWI1 S1INI1 OINlITll1H

ANVdvIO oNnuuvdoNVW NmlIID

lt6 ON lIIooa lVWlIOdNI

NOISSlWWOtlWunIVW WlItlOtld

Page 111: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W d 11

JiJJJo lUiJUJiJJ11iJS1I3dOOIS3wvf S

pIl Ulp

S UO lllJlldlJ JO lUnOWll lq1 uo lSlJ l1Ul JOJ W llp llll 0 601 JO lUnOwll

lq1 Ul UO l1lJlldlJ pIlpJllN ll S lUllU llldwoo lq1 ApiU pJoYlY lIJ1l1 llqllIddllSl Jlpun pIlI1 lUl lq PinoN lS AJlq10 1 Ullq1 Jllll lJli UO lllSudwoo U llllJ 01JlpJll II JOJ InJNlllun 1 SllllW 9161 PY liu ddNS lq1 JO f q 81 uOllS

W M 00 891 JO llllJ 1l11l lYHUSnaNI SON JOOJlq1 SlJlld pUll AJlU qllW pUll SlUlq llW liu plllq lq1 SJlllqq qN LL61 IZ AJllnUllf lA ll lll Y 96 llilld plS AlM q1 9 Wlll llJll

JO UO ldl slp lq1 Ulq1 N AJl1llI JlllJ PinoN lUlwd qs lq1 lJoJlJ l1ll Slxoq pUllSlS1l liu qsllN JO lsoWnd lq1 JOJ pIlZllln lq 01 lUq l1lW II PllJ U SUN UO lSlnb U

A1 poWWOO lqllllq1 llllPU AJllllp 11lll11lW liU S lJlApll pUll lOAU liu lJoddnsllll JlqsuM lS1l llillJlA l8 II Sll liu Plll JO mq lq1 uo plqp Slp AJllllpSllN 1Ulwd qs lq UO llllilJlll lliJllqJlAO S lUllUlllldwoo lq1 sUJJYuoo SWl1

IIl1l1 pIlAIOAU lq1 pUll UO llllUlwn Op liu lJoddns lU llldwoo lq1 JO Nl AlJ Y

0 601

0L 6lliJllqJlAO

slliJllq 11l10 slliJllq Jns snldllJ Nm 01 Jd00 891 l11lM

SON AJlU qllW 9 Wlll

slliJllq 11l10 slliJllq Jns snldllJ Nm 01 Jd Z 881 l11lM

snopJllzllquou SON oliJll IZ Wlll

SNoJloJ Sll pIlU UJJl1 lp S lliJllqJlAO lq1 lUllU llldwoo lq1 Olliu pJoYlY

OO 08

tpayton
Typewritten Text
97
Page 112: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

VofJ zz 86

L61 I nJdv JloelJt 11 1 ohd MlIll61 PUU tL61 I JoqUJlAON OAllOOJJO 1 dlJd Aoll 1Il1 t

L61 1IJdV 1M 811 1 d8d wllllLE

JJI8 n01JUOp I J01JllU8JOq L oN O d oN IJ1I V uOfOOS UaJoJUO11l81aJJ U JOWV JOtUI I

bas

la IOEZOS fi M d 911 lJnplXlOJd pUll lO lOllJd JO slIn M s uo ss wwollll jOS plldqns U plp AOJd SW Il nllws jO UO llllpnfpv llll JOj lJnpllOJd IIlWJOjuI llll Jlpun pll lnpUOOSIlA llUjpllOOJd llll Sl lJlld lllOq jO lUlSUOO lllllll A

t llllJ JlA OI Il plp AOJd lJI1l lllllllllA JOj Mtldd

DNUNIMd llS plXJw llllJ pUll lllldjns JO lllldjns pUOE ZIA MtlddSIl PIlllSU plq JlSlp ullq lAllll PjnollS lUlwd llS llll llllll pUll snOlUOJJ I

SIlA llu pllj jO mq llll Uj UO ldjJlSlp llllllllll plPU llUOO OHVd tulUOlllllS

ZIA Mtldd JOj lIjJll llll U plp OJd llllJ llll pasaSIl lUlpuods IMjJZllJE oJjlUllr lp O M Ol PUlj ulW lJOWjljlE WOJj pl JJll

ulUOllllls slllu PlI JO mq llll U plqjJ lSlp lUlwd llS l uo IlI Jll ljql lllddlllll U plp AOJd lSOlll jO SSlOX IU slllJllll llllll lJj llu lOlnoo Aq E q Lj8fi

s n 911 9161 llV llUjdd llS llll jO E q 81 UOllllS pll ljOA Plll lUI

puodSlM lUI SlUj JIlIlUJJO lW lJOOW lllllllu llln l OHVd UO lIlZ ulllJO

llljlllH UIlljJ lWV Ulld Aq pljY lU lljdwoo Il Aq pllnlllsu SIlA llu pllOOJd I

lnlJ Il qwnjojO lO JlS Q llll JOj sjloodV jO pnoSll llS

pll Un llll WOJj PUIlWlJ uo UO SS wwollll lJOjlq AOU SJ Jln lW S ll

SlaU01SS1UlUlO J JInulll lllsI pUll AlQ

A SlWllr UfJUlllfJl J a11A AlJjIlOW dsllwoUUfJUlIlfJIJ lllllqll lSlQ fpi1l1p M NOISSIWWOtlH AE

661 u IaqUlaldas

QNVWtIM NO MOdtlM

lNI SiINn Ilt wlIolw gllOOw

NOUt ZINtOllO H TvIH NtllllgWV Ntd

IL8E ON glQQ WWlIOdNI

NOISSIWWOJ 3WUHIVW 3a3d

Page 113: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W d Zl

EI61 tS9 6 9 sn LZt 1mIt OJ fN OS I DSIID

L961l SSE Wd 01 SfNn JawV3mqwDH 01 OJ pnpoJJ lUG 96Z11B 8u ptl 1I16J u 8 aJow If J pun pnl UJ lS041 O pllMJd UOH8u3p JJl e1 plds tJlpun suo s OJ d OL61 J rO 06ZI n d tSt JJ 11 mAid p DfJOSW SZ60 ttS sn 89Z QJ flfAnD It Sfl t

OS d IV u O 1ll1S J 1flOPU8 SP8lQJ 1lf JOJ IUOWWOO ou pam sPUoq lU WWA08 n SJtrwnoop JOJ ap8W Spa 001 8 0 JxlBd aq8Jnp j UOJ1S 8

51 Jxl1Id puoq t961 pg8p Jqtlun 8en8Ull QggSU3 alp JO UUUO1 O 18UOHBW31UI Il PJ 1U 41 OJ 8UploooV

SL61 I J1ldy QAJ D lPltl nn JO BPI 800 11 lIlL uo punOj 5 wUOl111S

uo ld aupICXlQI Mil U S ll l Nl JO doo e OtOEZt9f

Al poWWOO 8 npaq OtI 800 IL6I snw IlII JO n8alng JwwOO JO 1UW1J1Id sn lllS J l UO 1 WOO

odX3 l poWWOuS Od PU8 1 wOJO uOl8 y SSBI11rl lS18IS lU 00pxeq S SO PU JO UN KIt o uOld wp q i

pg U P Itu nbnqns litlNl uO spp S1 J P SUYIQJ 01 UO SS wwOqt Sll t n OHVd q pglY UO ll V

PY llU dd IjS l1j1 JO ZZ UO llS llpUn UO lUllldll lllfllm 1UllU llldwoII pUllSlUlWn lOP1llldd IjS JO UO lllllldlld l1j1 II mlO AllW SlOlll lpy llUOq l1j1 JllZ U

lloYll Slllj UO SS WWOlljl 8 lJIll1 S ll lllll1j1 JO lllplIMOIDI lAlllj 01 plwns lldAIlA SnpUOS lldd IjS l1j1 IjllnOlj1lll Joold JO Ulpmq l1j1 01 lxxlS ll 1j1 M

L spunolll lSl1j1 uo

SlSll 1UlWd ljs l1j1 pl1lll pUll plY SSIlP AJlldOld ll lllll1j11ll1j1 UO Snpuolllpnpold l1j1 JO UO lllySSIlP lJpll1 l1j1lOJ S Sllq yxxls llOWII Slp AOld llnpllJnUllW Ill U plsn Slllpl1llW Mill l1j1 Ulllj1 ll1j1lll llOJll l1j1 lPllll plIjS UYlllpnpold PUll1j1 U lllqo 01 llplO U SlZ S ply xxls Ollldlld l1j1 JO llumn

l1j1 S 11l1j1 SSrlOld llupnpllJnUllW l1j11l dl1S llljllnJ II ll nOOl PlnOM AJlUO llllS

JO llUpIlW lllSIIOl lO SlYlIjS Sll Ijns sldllljS 1Ull llJP U lWOSnlj1 PlnopUll lJPllll1j11l pl1llldW llUOSll lllllUpd lOJ lO

9 SlUlWn xpJO llUpIlW l1j1Sll Ijns slSodmd ll1j10 lOJ plAOldW llq OSlll AllW 1 AJlUO llllS lOJplSn AIUOW

WOSl lldlld puoq lJIjM 11l1j1 lIlJ l1j1 UOllll lP SUOOlU 1001 UO SS WWO

lljl y xxls llOW S lnSS III SUO ldpSlp OM1 l1j1 JO 1j IjM llU U Wll1 lP UI

NOISSflSIG

UO ldpSlp lJIll1 llllldOlddlll1j1 JO UO lslnb l1j1 UO Ulpmq S llUO llld JO ldos l1j1 JO UO llllU JP II Z

pUll M3dVdDNIlNHld YlS XlW 1l1lM pUll llljdlns pUll llljdlns PUOII ZIA M3dVd

Ulllj1 UO ldpslp yxxls llOWII S AJlUO lU1S AIjM 01 Sll UO lUUllldXlUll I

lOJ UO SS WWOl1j101 ploYll l1j1plPUllW ll 6L61 81 Alne plA JlS llplO Aq llnolll llodlMS UO SS WWOl1j1 JO Ml AlM lOJ UOllld 1l1 nllJ llJqwnlOJO PllSlG l1j1lOJ

Sllllddy JO llnoSllUlS pl1 U1lljlljlM pl1Y OHYd 8L61 8llqW l1dlS UOUOlllllld ll pl UlP pUll 1Ulwd ljs

l1j1 pl1lll pUll ply SSllp AJlldOld plllj llplll l1j1 11l1j1 plpnpuo llOJll l1j1 11M3dVd DNIlNI Md YlS ll ljdlns PUOII ZIA M3dVd Ulllj1 y xxls

llOW SIlM AJlUO llllS ZIA M3dYd uondpSlp lJIlll l1j1 11l1j1 plU Wll1 lppUll UO S Ylp S lYlYJO lUlW lJlllS l1j1 plSl lAll UO SS WWOl1j1 Ml ll UOpl1lll OS UYlq lAlllj Plnoljs pUll lldlld puoq ll ljdlns JO pl1SlSUO 1UlWd ljs l1j1

lll1j1llU AOld JO Ulpmq Sl plU lllSnS plllj OHYd 11l1j1llU puy uodn UO lllllldll

plplllMll lYlYJO 1UlW lJlllS l1j1 LL6I vI llqOpO plnSS UO SYlp 1l UI

hh NI S3Nn VWlIOW 31100W A DlIO H11V3H NVI1I3WV NVd

tpayton
Typewritten Text
99
Page 114: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

zz

OOwpJioQ 181 01 uAJI oq 011q1oM ql 01 0110 JllIlp1JJ PJM tmsooou

IUJUIlqo U AIIIIIIP 1 oddJIII 01 1011001 JO q Uopmq M1IOII 1J1IL tL691 1I 1I S EI IH plon Jod H0BuII1IN AI 1uJpwJ JO DJCl oq1 vo poqJmllOp UIIl I01lO 1 lUIlIWd ql 8II111Ql11qAoJd JO uapmq Avoq

11 181 Itdd lII

IlIlp uotlllUl JOJ Olqvn AIJoIool OU pu1f JopIIO0111 JO P01Snt lip lJot nq lVOwellll IlIIp 00II0 11l1p Ploq UOI WWCO OUES811 PO tL61l

llOuOlJt 3 00 1I0lWJoOK SL61 Ip pt t9tpt d StS II IUtMN Hl IDUOIIIHlnJ3 t 311 iwdUlOUOI ItIHO UIIO 6

iClOIJJ JJS

A3NlInH SK NVlId S

UO SS WWOlql hehl unlJoddo S ql jO nlBl tlll llAll OHVd

PJoYlJ lql WOOj lUlP lS SV l pUll ll OE ZOS i Iil 9 UOll sod J lqljolJoddns U SlUlplOOJd pUll hljJoqlnll ro8l18u ll SlUlwn8Jll SjljJq llPUllJOWlWs8u Plllld Jjlql qlJA l1Y hllW 8UjpllOOJd II Ol Sl lJlld lql SW1lJ HllWS jO UO llll

pnfpv lql JOj lJnpllOJd 11lWJOjUI lql jOlOE UOllllS JlpUn M1l1 jO UOllSlnbII SlWo Ylq lJ1lll lql jO UOllllllJW llUj lql Sllllj pllnds p jO llU lsqll lql uI

jooJd JQqlJnj jO pggu U pUll pglndslPQJll Sllllj ou lllql os Jgdlld puoq Qljqdlns jO lpllW SllM JQUO llllSllYlo Qqllllql

8UjAuQP 109 S JQjJJlllQql Pllj U QJQH 6llUQP Q Qql jO llUllJ lpuod9Jd II hq

WJ1l1lSl jO hl Pl1llA Qql SSQUQl UYlP pUll hlU lllJllQlqllUOSll9J ql M lAOJd Ol Sllllj

lUQ lYlns qlJOj llB lsnw JOUQ qlns hq plsnll l Sl8Jllq lJQAO lq8 QJj JOj 9161

lllCOClUU TI ItATJ 1UIrAl InJ fVT

tpayton
Typewritten Text
tpayton
Typewritten Text
100
Page 115: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

101 W d ZZ

ooXgw

JO JlnD all1 juolU samn rBj uod 3u1m sUBdwoo iUOIJQA lS pUB SluaBu d s opQSOdwoo UOHB OSSB PEIl B 5 VWDA I

JO SW l U U lllql SU8 nll LL6I I JKjw AoN IXlIY VWD1UO lllpOSsyUIfllllW J nD lS 1JO llJll dwoo ql uodn IXlllllU SllM SU1lxJJd S qL

SJiJUO SS UlUlO nUlll 1Sr pUllAllG A s wllf UDUlJ Dl i1J A Al llOW

SllWOqL UDUU mo q l1lqqOSllG fpilllp M NOISSIWWOJ 3HL Ag

6L6 fr JaqUlaldas

M3GMO GNV LMOd3 M

Iosunollu J H JO n JOlI JOJ aMt lJaqoH UlOf pu asaaH AI uO VIU w lBdOl SlflOG Ims w q 1V JOJ p DqWOJ H saIDl

SOlllJOllnv lJOd JO UOl1 OSSVUJOJ I JOJ fmls tau iYj pu UII Del AllJaqoH sapulY 7 P DlJIH IJDlJS W PIMJ

SOAJ IM UOlSOA111 JO SOOISnJl JO PJ Oll UOlSOA1 JO AI 11 JOJ f 1 Del s I D pu laMoel IUIWD uaU

UOl1 POSSV lUllJ W JlnISOM JOJ 111t l qOH

9161jOV llu dd IS 11 JO L1 UO OOs JO Al1 10 A pu lq u Jun S Josn J IIOU JO Iunoo m 11 01

sollJ I lJod JO SIU w d s Josn lJod JO uOl1 lldd I1WJod PlnoI l1 WOl lJ 1 I II WJ I V9161 jOV 1lll ddl1S 11 JO L 1 uOl1

JO uOll lolA pu lq u Jun S I I uOll llHqo I J I l1un sosodlU uoll llll1 SOI 111UAllnJs nsun I J sosuodx I ns A d 01 lJod 11 J nboJ IOU soup I I Inq uoll lll11 IIspooJns lJod 11 J sosuodx U0l1 ll11 pOllJOqwpJ oq lJod 11 1 Illu wJnboJ lJJm I II WJ I V

lJod 11 I SIU P JOJOIS I IU J 11 JO lIll 1 U All podso q UOS J S u JOSU ll p AlJooOJd pu AIIq 1IlJ u ll U mqo so u dwoo llulJopoA ls pu sou ll dl1SW IS I II lu wJnboJ lJ 1 I U WJ 1 V

9161

jOV 1lIldd IS 11 JO L 1 uOl1 JO OA I IOlA I Jd lq u Jun U S u ll111 u u o S

JOJ A1ll 1 WOJJ lJod A H J PlnoI I lJlJ 1 I U WJ I II lu w J nboJ uOll Y uw pU uv

S3AlIVH1NOlS3A1VD 3Hl dO S331 SflllL dO GlIVogNOlS3A1VD dO A1IJ 3HL

NOI1 VIOSSV 3WIlIlIVW d1flD 1 S31

9 LL ON 1 3JJOG

NOISSIWWOHWUHrvw lV1 3GiId

Page 116: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

d

pD1W01PUI 0IfAU01lO VI1daOD lWllIJII1l J0Al UO lJOd tql qlJM IJnouoo VdY

L t 00 JO 0A119JOJA oct 0 1W81 CIql punoJ JOOWO IutPllOJd tql1lqllO puJ dutpug QOJ1I1 tlIlMIl JO 1 Uoo OIIL

POJUOP IJ U pod ilulI v O IJ1IUlPJll OdfMloCnV 01 7 olS p n

Il SL ON 1OlOOJ1polDOlOoId nbopllJ IlqpIIOOJlIIUIl1IIJO IIW lOIIqn U ll11 1 JlUOllpod 111 JloIOIJOll

IltLt01 lOII lU 9t pIl oq liplWll IOu IDIII U 1 0j Ullllld I uooq IAIqduulOq JlV pIl8 U

uJPOOOOld 8Jql II Ilqmq 111 JO CIIOG IMp UIMOIIOJ 6L61 t oune DO lKItAI ll1 OJ uoltnod 11 POIU 1tUI Un lS IUn

IIUO SlOOP S UO SS WWO QljlllM lUQlS SIIOO S uomuYQP Qljllllljl pUll slSQ88nsVWOhSll pllOJq SlI QSMJQljlO lOU Sl JQSn JO uomuYQP Qljl lllljl SJQSn

pQJQP SUOO IJKiOJd Ql nb QJll SlUQ81l d ljSWllQlS lllljl Qn8Jll IQSuno8I1J1lQH

pUll t VdVlJOd QIU SQS WQJd S lJOd Qljl uo lOU sUOSJKi pUll lJOd QljlljllSUO pQuuoo SSQlIsnq lnollM SUOSJKi SlUQ81l dljSWllQlS SQpnIOU l lllljlU pllOJqlJllSSQOQuun Sl JQSn JO UO l UYQP Qljllllljl SQn8Jll VWOhSldQOXQ VWDh

811PUY ljO ljM Ol QlqllUOSllQJ Ol WQl Slljl punoJ JQOYJO 8u p SQJd QIU

8Illn ouJ qons JaAO SUOW

JO uo 08 JO Apcll8llO SQJAuq JO SUJUMO AlVa JaqJo JO UO lUJoWOO dlquaulJ8d uouad AUV8a11lPUJ qons

qJ M uonoauuoo U JO uo 88Ilu mq SUloP AlUa JaqlO JO uOlUJoWOO d quaulJUd uouad AUY Z

8IlllPUJ qons

q1 UO JOaUUOO II JO uo 88Illlmq SIIOp Auudwoo SUJJopaAaJS Jo pUU AouaSu d qswua1s AUY I

01 PaJ wl aq 10u1nq apn oll nuqs 8IlAJuqA UOl8aAf80 aqJ JO saa1mJ

JO PJuoa aq1 Aq paUOJlUOO puu paSuuuw 8IllnOuJ aq1 JO Jam Y iO NOILNUga gSn1 ON Will

ljOllQ uo UO S

nlouoo S UO SS WWoQll pUll SQ lJ1ldQljl JO uOlSod Qll q pQMOnOJ UJ11Dl1IlS

ljlJOJ lQS Qq IllQnSS III SWQl JjJ1ll Qljl SMOIIOJ lllljl UO SSnlSlP Qljl UI

SUOHllI0L1 uOHOQS JO SUOH1l8QII1l Qljl QAIOAII pQPJOOP Ol sQnss

8111I1lwQJ QIU lOV QllJO 91 UO lOQS JO UOHllI0Ull 8UHllJlSUOWQP IIuQPJnq

Sl Au1lO Ol pQUllJ SlIlj VWDhQSpdlQluQ UWllJ UOSJKiQQJljl S lj Ol UQAQ Q81llUllApllSlP ou pQAOJd QAlllj QnSS II suo SlOJd Qljllllljl pQYHSQl SSQUl M VWDh

11 lOllJ uI Q81llUllApll JO QOUQJQJQJd Qnpun JO sBUJllQlj Qljl 8u Jnp QOUQPQ

pQlUQSQJd JOU sJQpq Sl II SUO lUQlUOO 91 UO lOQS Sl pQn8Jll IQA SllnSJKi JQljl QU

SlIlj l lU llldwoo Sl II SUO 11l10L1 pUll 91 uOHOQS SQ80111l VWDhlj8nOljllV

SNOlsmNOC1NV NOIssnSla

suondQOX3 QSQljl Ol SQRdQlI pQlY IQSuno8UJllQH pUll VWDhV dVpUlllJOd Qljl VWDhq pQlY UO sJOOP S JQOllIO 811p SQJd Qljl Ol suoHdQOXQ uo UO S

SlwwoQljl QJoJ MOU S 811 d OIU t SQAJllljM Qljlq lUQWlSnfpll pUllMOQJ JOJ SlOOfqns Ol IXIJljl pUll QlqllUOS1lQJ pUlllsnf Qq Ol QQJljl L1 UO lOQS

Qllll0Ol sWQl JjJ1ll Qljl JO QQJljl punoJ Qlj ljO ljMII 6L61 1 llW uo UO S

JOOa 11lmUI Ull pQnss JQOllIO 8u p SQJd 81JJllHQISllQa WllnUhQ8pnf M1l1

QAHllJlS IIWPV t IQSuno8I1J1lQH IQSuno811J1lQH JO nllQJna S UO SS WWOQljl pUll lUQWlJllda lDIooa QllllS llWllqlllV Qljl VdVSQ lPoljlnv lJOd JOUOHll oossy ll UJoJIlllQll SJOUQAJQlUI pUll lJod Qljl VWDhQJll 8u Jd

Qljl Ol SQ lJlld 918 1851 S O 9t 9161 lOV 8l1dd ljS Qljl JO Ll pUll 91

suoHOQS Qllll0lJOd Qljl SQAJllljhUOlSQAlllD Qljl JO a t ON JllunoJJjJ1l

NOlllIWWOe 3WUIlIYW Y1I3Q3d 7ClT

Page 117: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W oI

11lq1 lslllllns PU1l lsn1lp lq1 0 lH1l1ll1 lq1 UO l11lJ 01 lUnlJoddO lSJY aqlA1lq lJnoJ ql U1lqllq11ll UO SS WWOJ rolWWOJ llllSllUI ql1j 01 oooqlj l W lJnoJ q1 l AMOq JoanS UJaI aMIfJnos UI S PUlI1l Al0l1ljnlll q1 M

PIY SlJp1l1 U S Snllj Al01lldjnx 01 Ajdd1l 10U Soop jllJ o El q1 l1lq1 UOlSO

dold q1lOj S1l 11lq11lul 66J lit s n 09E dJO lDU wJa L Jail iI

JUI 0 a olojf JoanS UJaI aMIfJnos UO I A1lq S J llJOdIU tL8Jt9Z 1I1lM jZ laMPlOiI 0 aJdX3 6J 8 s n6tE dJo OMJaIDM

PUOlUI iI o El a a aas sd qsUO l1ljl A1lln Jqnd PU1l l Pllll uowwoo U

M1ljjO l Ill1lW 1l S1l PJ1lAU J1l SlSn1ljO AlOl1ldjnlX 11lq1 p qSJqll1s l IIlM S 1Iljn1ljl1l jlqllJs jUO

lnq llSn lql PU1l lUlppU U1l U lUlll JlIlU jp1lwpd S lJOd lql UlqM UlA l UOl1lllOlqns PU1l SW 1ljO jO llA 1lM PU1l UO l1lY UWlPU l nOOl pjnOM Wl lJp1l1 q1

l1lql SlZ S1lqdWlPU1l ljq1lUOS1lllUn S 1 86 oN Wllllllq1 VWDM q1 M SlnlUOO

jlsunoJ lIuP1llH rou1IJ8 lu UMO S lJOd lq1 lSU 1lll1l lJOd lql Aj UWlPU 01SllSn ll nOOl pjnOM Wll lqll1lq11lu w 1ljO 186 oN Wlll slsoddo VWDM

lIllllAOO Alllwpd q1 lIUlpM AUlldwoo roUlllnSU q1uo S SSOj PlnSU jO jS l q1 sro1ljd AJlOOOld PU1l AJod roUlllnSU U1l Aq P l

AOO S l Sn ql1 AjUO lA 1lM 1l Sll nOOl1 sn1l jq1lUOS1ll S j 86 oN WlIII sn1ljO uOl1lllolqns lq1l1lq1 SPUlUOO OSj1l 1I M1ljjO l ll1lW 1l S1l P OA 10U J1l

SUO s AOJd lJl1l1 U ssn1ljO AlOl1ldjnx l1lql s nllJ1l lJOdIU jq SUodSl ApjOSS lJOd lq1 lJlqM 10U PU1l olll1l01 l81lw1lp lOj lJq suodslJ 1I1l lJ1ld lS1lljl1l SlSn q1 llqM AjUO pl nOOl S uOl1l y UWPU l1lqllno SlU od lJOd ql ljqll

UOS1llUn S Wl1 S qll1lqllllIpuy S lroyO lIU P Sld ql 01 sldroxllJOd IUJOA qons jO SOAJ qA UOISOA oql jO SOOISnJLjO pJ OU oql Aj IOU

os 01 pu OIOJoql loodsoJ ql uO I lloJqns jO Iqllp AU OA 01 SJO JJ o JO JO JJ o oou msu SIosnBO U qs Josf qons qOBO pUB SOAJ qA UOlSOAj oql jO SO IlP j oql ql UOlOOUUOO II JO uo

SSOu snq llu op SJOOf qons jJ d U JO oloqU lIUpOAoo SOP lod JO AOlod oou msu AU Aq polOAoooll w p JO 880j JOj UOISOAI jO AID oql JO pu SOAJ qA uOlsoAI oql jO SOOISfilL jO pJ OUoqIISU ll OA q A W Joof qons SW lo U SOA SOAJBqA uOjsoAI oql jO SOOISfilL jO pJ OUoql jO solmo j oql jO Josf qO 3 SOAJ qA uOlsoAI oql jO SOOISnJL jO pJ OU oql jO SO II joqUO SUO lBJodo s Joof qons OII luoPpU JO WOJj lIU J JO 86 ON wOll 01 poqns so u dwoollupopOAols pUB sopuoll d qsW OIS oooql u ql Joqlo SOOI AU pUB SJOIO JIUoo 8uoll sooAojdwopoueol lIu pnpuSOOAojdwo s Joof qons Joof qons AU Aq jJ d U JO oloqU pognBO SOAJ qJUOlSOAI oql jO SOOISfilL jO pJ OU oql jO SO I I j oql jO AU jO osn oql WOJj lIU Sp JO jO oon

oql ql uOloouuoo U llupmooo JOSf qons jO AjJodOJd oql lIU pnIOUAjJodoJd 01 oll w p puAm U Al poq oJjO 880j ql uOloouuoo U sosuodxo UO I lI lI pu SOOj sAOUJOllV oN uoseOJ llllpnpu oouodxo pu AIIq I soll w p suolo sUI p U pu AU ISU lI pUB WOJj UOjSOA jO

AID oql pu SOAJ qA UOIAI oql jO SOOISUJLjO PJ OU oql ssolWJ q OA S pu Aj UWOPU U qsSOAJ qA UOlSOAj oql jO SOOISnJL jO pJ OU oql jO SO IlP j oql jO Josf qO 3 ALINWtlaNI

86 wallVWDM Aq uOl uYlp ql 01 plndw ll lJ q1 SlqS U W P 001 S q1 PU1l

Lj UO llS l1ljOnss U SWll lJP1l1 q1jO jlllAS l1lq1 OJjU punOj S1lq UO S

S WWOJ ql llOWlqlJnd Jq1lUOSIll l1l s pnjOuoo U J q UO SS WWOJ qlq qM SUO S AOld lJp1l1 Soql olll fqns q01 S ll1ljlJod jO sn ql U PAjOAU

AjlUpyns l1l SlU81l d qsW1llS 11lq1 lIU puy Jno q1 M 1UlS SUOO S oJdns

1JOIfJnV uOIsnoH fo IJOel iI u010 JoV aW1JojffinD laM jO j1lUO l1llql UO Jq1lUOSIll Il q 01 llSn jO UO l UYP ql spuy UO SS WWOJ IU

8L6JE8L nrs 81 1JoIfJnV uOInoHfo lJoel iI UO 10 JoW aW1JojffinD lsaM

OT NOLS3A1V 010 ALD 3HL A OSSV 3WILH1VW lnn IsqM

tpayton
Typewritten Text
103
Page 118: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W zz

E961l869 L69 SO tLE 0 res l MOJ mI dJO umla u II 1C1 OIl s

E 86 oN WllJ lllql SlnBJIl VWOA SWJIl O JO SlUlW l lllS U SJlllloP JO suonnwJO lUlwAlld U llumnSlJ SJIllA lUlOlJ UJ lJOd lql III SlUlplOOIl snoJlS JO lqllnUJ AIIIl OldS l Al SSlOlU sSlu snq l qIlUOSIllJ II S Wll lqllllqlllUJPUllUOO Sld

Xl lJOd lU AllJpU lSl U E 86 oN Wlll PllO lflJ JlOlIJO llUJP SlJd lU

WOl IJIll JO lluQweqnboJ

QIII Illlh Aldwoo 88jllOd JO MlOd QIII 18111 AJlWol 08111 IIIJUJnJ 08 ClOU8JnSUI JO SQI80Y lJOJO Ql80YllJO 88AJ8I1A U01SQAJ1l0 QIII JO IQQl RJ JO PJ80l1 Q1ll 01 1QP Qlj 08111 ClOU8JnIUI JO

1QI80Y lJ0JO Ql80YllJO JO ClOU8JnIUI JO 1QI010d JO MlOd QIll JO Adoo 8 PU8 IlUQI8A nlQ qQIII JO

ux l1llQ118 JO llul8l1 J1ljlU8l1Jd 1 18QQ 8 pU8 Y JO Y JO llllJl811IJQPIOI M10d I8JQUQO 1 l8QQlUQUnO 8 llllJA811 88 uvdwoo JO AUvdwoo 8 IIJ pClO8ld Qlj 08111 ClOU8JnSU lions ClO IOU UQllph Jopd

IA8p Ot AlIII1 88AJ8I1A UOl I80 QIII JO IQQl RJ JO PJ8OlI QlllllllJAllISJY lnollllh ClOU8JnIU QIllQilU8110 JO IQOU80 IOU Olh JQJRSU Qllll8111 1lJ0 8 U 81UOO 1J1l1l1 PU8 YJJ8 IJIII JO 1 86 oN wOlI

IIJ IIlJOJ 1M Al UWQPU QIII Al1 q81 JO Il 1U1 1I0nl OlllUJJnl1lJ lUQWQlJOPUQ U8 uJ1lluoo 11811 SQjlIlOdJO M10d Q ClOUQJJROOO JQd OOO OOO SS U8111 1SQ110U Qlj 118111 Al1 q81 JO 1l WJ Q SQAJ8ljA

UOI88AJ1l0 QIII JO IQQlIRJ JO PJ80l1 QIII JO SQl 1jl8J sill Ill UOl08UUOO U JO uOOn lno JJ80

Qq 01 IUO I8JQdo II llUJJQAOO ClOU8JnluI Qil8wvQ AlJQdOJd pU8 Alllq 81 olqRd I08DS PU8 ClOJoJ

onJ U dSQ1J1l1l SQAJ8ljA UOlSQAI80 QIll JO IQQlsnJ JO PJ8OlI SillJO 88l 1jl8J QIII Ill UO108uuoo

IIJ JO uo ISQlIsnq llUlOP AUvdwoo llUJJOM11 II08Q pU8 AOUQllv d1lIW 8Q1I 11083 lJNnlflSNl

fg6 lUal

L1 UO lOlS JO lAPIl OJA S 186 oN WllJ lllql lpn ouoo

pUll IPlJn7 pUll Jal1817 puu fJtI IL OSSIU pllIlJOunU l SUOSlllJ lql A lSJOlJdJOJ l qlluoSlllJun lJ1l lJJJIll S lJOd lql JO SUO S AOJd UO lllllOJqns pUll SW Il O

JO JlAJIlM lql pUll SlUlW lJnboJ Al UWOPU oqllllql puy 0A JlSn oql U1lqlOS lJOW J UOAl lJq suodslJ A JIl lJlld lJlM lJOd lql qO qM U SUOPllfll S UJ AlddllPlnoM l lOUlJJnooo UIl JOJ llq suodSlJ AlIoqM lJ lMlJOd lql J AlddlllOU PlnoMllupllOOJd lUlllSU lql U lUlw lJ nboJ UO lllOy UWlPUJ S lJOd lql qllnoqllV

6t1t III nls 61 uJdns IPpn7

jOy QIII JO L I UO OQI JO UOl810 A IIJ

Qlq8u088QJun PU8 llnfun UO I OJd DJ81 AJ018d ROXQ U8 JO UOl 8o1qnd QJlWSill Aq ClOUQilnlSU

l lJOd QIll JO U088QJ Aq RJOO8 Alllq 8J 1I0nl J AllOq81 WOJJ Jim 0l1lJ08 OllJOdQIIIIlWQd o

PlllllS A lJAlJ JO lOUlSqll uodn JIlUY A lApIlJlS IIJWpIllWllOlq qO qM UO S OlJIlP uJ oU olqlluOSIllJun punoJ SIlM SlUlpoJ AqplSnllO

ollJIlO Ol lllllWllp JOJ Almq suodslJ plWJllIOS P qO qM Wll lJPlll IIlUJWJOl II

6L61 80unf 111 lnlS 61 1J1JISla IJOd uOIfJOIS 1I1PlJn7 uJ 8961 J

0 96 II 68E UOlsslIUIUOalUll1JuV lUJapaII JU s 17 umpuuJqStJodxg UUJ1J8lUV UJ PIlqdn SliMUO SJOlp S UO ssJWwOoU lJnllJ III SJ l qO qM

JOJ SAIlIlP JOJ JQlIlJodo lql oludynoxl PlnoM lSnllJo oql lSnIlOlq SAIlIlP SJo

JOWl JOJ Almq suodsoJ JO JOWJIlIOSJP S JOlIlJodo IIlU WJOlll olqlluOSIllJun punoJUO SSJWwOlql 9961 SIS sos W II 6 JoqJUH fJoMaN 10 saJ11 J0IJ

8Ulpuolulpuu 8U1P1J07 Jal1817 puu fJtI IL uJ lOVoql JO L1 UO lOlSOlIlJOJA Ol

UO SSJwwOoql Aq punoJ uOlq OAllq slJPlllIIlU WJOl U SlSnlllo AJQllldlnox3s

SJlSn Ol uo plSSIld m lSn1lJ0 AJOllldlOOXloqlWOJJ llUJllnSlJ sllUJAIlS AUlllllql OlllO PU lOU soop MOIlq plOOlJ lU llUJpllOOJdlUlllSU lql UJ Alddll lOU SlOp Ju8ns UJalsaMltnOS U pllS lllllns uopdlOxo OIW

OSSIoql JlAO lJOW s lJOd lql SIl qons SlJJlll UJ SlSnllIO AJOllldlOOXO JO AlmqlSSJWJod lql JOJ AlPoqlnlllou SJ Ju8ns UJalsaMltnOS lSnllIO AJOllldlOOXO Oql JO

uopllOnddll WOJJ plA JlP sllUJAlls pllOlYOJ uopSlnb UJ SllllJ llU AOl lql sdllqJod

fnlClCll ATIAln 31AI1111Vr 1 IIn l of

tpayton
Typewritten Text
104
Page 119: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J rl

JIlllS BuIIO pm np poBpnfye lU1OUlll nl1 0

0rJ I lid UOI JO fOOJ OlUOllV POU l1JqDluoWSpnrJI P od Hlu IuonbuffOp 9OlUl 0AfJ oqllllp lUff oqlWOJj wnu

Jld 01 lUoJad u JO UJ Iqlll SJlnp llWlll l1Iqs jOOJIql UO1 noo Il 1 JOJ porn l ns Pl tI uodn slunoooeltYnb ll l nbuH S n BeM K OhU a1 l q NII u qluow aqt 8lJMonoJ qluow JO ep tli1ll I 1 uo predun I1OOA1f uy

SAOfloJ SB p Ol 6L61 I lSninvA l00lJl J Sll SOT oN I pUll Su1 w Slsru JO PJlIog 6L6I a lunf s uodQ 11B JlQIIXluro nll t 86 oN Watl

SUO S AOld lSUOOXl UOllllg ll lql SlgU lnllql Osyll JlSUnOJ gUP1lH SlSUOOX l

UMO Sl AJUO Alld pJnoqs llndSJp 1l Ol Alllld qlll l lSn1llq P IlAU llll SWIll

lql JO SUO SJAOld lSUOOXl UOllllglllqll1lql Slnillll VWDA llllJO gUJP Slld

lql Aq pllsnfpll pUll plM l All pll lplO lllM9 801 pUll Z 86 soN Wlll

po oq ImNo muOOxUO I 8l pu 8IINoO pu np lunolUl1 ql jO 0 I ISll II j SA UI011 lq UOSll l uol 8ll jO

SIlO U pu IU nblI f P oowoooq oIOAII ql I P lSJg ql WOlj wnuu 100 OJ lU 1OO U l jO1 1 qll oo81 q lool lUl POSSOSSll oq lI qs UOlB8 ll 10 pU osunoo 1 8 jO osn 1 nOOl SjJolJ

uOl lIoo q qNo uo Slun lU nblI OJ lu nblIOp S ponSllNo oI OAII ql q lqNo II qlUowql 8u NoOlIOj VUow ql jO A P lSll ql uo P dun oI OAUl AUY StlJIOANI

LNtlflON17tlaf80l WJ1

j SA WOllY qUOSll l 8lIpnpu Hns q ns ql No UOl UUOO II UOlooAlO jO AID ql q8nolql S A1 qA U01ooAI Oql jO soolsnl jO pl og ql Aq pOJJn U sosuOOx l A d lI qs 1 S0 q ns I A ld lI qs U01ooAf O jO AID qlqllnolql ooA1 QA uOlooAI O ql jO SOO1snl jO pl og ql pu s qA UOlooA

1 0 ql jO soolsnl jO pl og ql jO ooll j ql jO 1 S0 Aq jJ11 Sql 1 pun lln jOp AU ApoWOJ10 UO S AOld AU oII0jU np ooluOW A 1 I100 01 U01SOA 0 jO AID ql q8nolql ooA1 qA U01

ooAI D ql jO S lSllJ jO p1 og ql Aq lqllnolq oq lI qs l1ns UI tlSNtlJXtl NOILVDlL17

80lWJ1Sll Pllld

lJqllUOSllll pUll lsnf llll Al NllJO l UI J wnw u w OOO OOO II gU qSqlllSl pUll llUlllnSU lgllWllP AllOOOld pUll Al NlllJlll lUlg UJlllqo OlllOd lql

qlM SSlUJsnq gU OP Sl Ulldwoo gUpOplA llS pUll SlJ lUlgll d qSWllllS gUJl nlru

86 oN WIllI JO SUO llod lqll1lql plpnpuoo S 1I SllSn Ol lAll q qold UlAOld

lOU Sllq lIPlll lql Aq pll nb ll SlunOWll lql U llUlllnSU gU U lllqo l1lql SlllY lloSJll plOOll lql lgllllAOO llUlllnSU lUlJ llJns gU UJlllqO U AlJnllJP gU S1lll l

U pllU lPOOXl Sllq llod lql pUll SlSsoJ U SlllnOp JO suoll w plSnll l lAllqSllllA lU l U llod lql III SlUlPJ llV llUlllnSU lgllWllP AllOOOld pUll All qlll

UJlllqO Ol SllSn lOJ pllu lql SlqS qlllSl AJllllP plOOll lql llA lMOH Al UWlPUJ

l1lql llnsUJ Ol llSn lql ll nOOl Ol lJqllUOSllllUn Anllnoo S l pUll llU lglg lU

UMO S llod lqllSU llgll llod lql AJ UWlpU Ol llSn II lllnOOl Ol lJqllUOSllllUnS 1I L1 UOllllS Sll1lJO A 86 oN Wlll JO lUlW ll nOOl llUlllnSU Al UWlPU lqllllql lpnpUOOlM 1 86 oN Wlll JO UO SSnlS P lno U qllOJ llS SUOS1lll lqllO1

JnJMllJun S 1 86 oN Wlll

UJ qllOJ llS Al UWlpUJ lql llnSU SllSn lllqllUlw lllnOOl S Wll lJllll lqll1lqlVWDA ql M Slllgll lnq lJqllUOSllll 86 oN Wlll JO l Wl All qllOOO OOOlql pUll SlUlW ll nOOl llUlllnSU JllllU lg lql SllP SUOO Jlsuno gUJllllHWIll lIllll lql JO SlUlw lllnool llUlllnSU lgllUl1lP AllOOOld pUll Al qll JllllU lg

lqllSllUOO lOU soop VWDA qg q APA SSllX l S l WOOO OOO wnw u w

lqllllql SlSllOld VWDA osIV lYlUIlq s Alllln lO S llPlll llqllOJ llUlllnSU

llnlOld Ol llSn II lllnool AllUl AlInn llqnd lO llJllll l OU lSnllllq 186 oNWlll U qllOJ llS Al UUIlPU lql JO llUlllnSU gUJl nOOl U lJqllUOSllllUn SJ

OT NO S3KfYD 10 A IJ 3H A OSSY 3V11nI YVII linn LStlM

tpayton
Typewritten Text
105
Page 120: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W J ZZ

JIP1Il 0111 OJ polO ftOldn111oq loo KI Nq01d UJOd IOJd Olj q poldJOOOl PO 01 JlOIo nop JOI ldooxa008pn 1Ij oq lJOd oq n

lI0 JlI1Id oq 0001 IIq Inbo 01 OJ 1 0I01IllOlI q n0IfI nOI ON WIll 10 00 oqJ

JOOJOdo 1I11JW10l oql q pomo lOP 101 01 oop woo 0 AI II 0I01IllOlI 101Jd

QlqllUOlQlun U1J oq Ol punoJRMwomU 1IJ1 1opJAOJd cq NRlf1JQpoento 11 IoJlNopMlll go luowolln nuwtpUl UI SOooppodWl JOlIIJodo IIOjWJlll qOJ1lAl OJ 9L60 898 SO6tt VIp I 9L61 TO 00 901 P dnt Vo f IIIUKY 1IU1II 1itU PJ 111 11tJno P8b L61l 91 otl 14 1 81 3Il1 11J1no 3U lOI1IUIUO IJIIV noN UDlPfI S

801 oN w I JD uOptAOJ d oql 0 UOPllIOddo au IOIIOIdXI JOAOMOq VWOh L

LI UO lOQlI JO UO lllIOU lOU

S l llltjl lQpnloUOO S l lfurrpUlltj olfmo lUllf lilu JOJ AlmqllU JO JlWfIlIOSJP 11

AldWJ lOU SIOp Wll IJIlll SltjlllltjllfUlpUlllSJlpun ltjl tjlM lfUlIPUlltj lUllfUlf luSl Aq lQlfllWllp OlfJllO JOJ sWJlllO SJOUOtj lJOd ltjl llltjl spQUIJ pJOOIJ ltjl

pUll Sl WPll lJOd l1lQQJ 11 JOJ OS op Ol PJlS lnbIJ UllOJ xx S SSllun 8IO AIIS

IllUlWJlIl IllO dAl WJOjJId AIJlltnlflJ lOU op IlUUOSJ Id Sl od lfUllllJQdO Ull lOU

S lJOd ltjlllltjl SlOQUIJ AIlJ lW WlIl l1l SJllOlllJ pUll fOnJl JO lfUlpllOlun pUlllfUlPllOllllUO SllOOO Sl Ul IOullf lilu S lJOd ltjl JOJ AlmqllU WJllIOS P SUOllUOlUOOS VWOM Ol JllJlUOO lOU SIOp tS6 ON wllI llltjl spuy UO SSWW l1l

oolfmo punoqlno JO punoqu JO

QQlllq JO Ull POlsno 11 OWOOIqlOU SIOp lJOd ltjlllltjl SllllO PU JltjlllJ lnq IOuolf

Ulflu S lJOd ltjl JOJ AllqllU WOJJ UOllllJlUOX I Ull Sll lQpUllU lOU SliM OlfJllO

JO 10JlUOO pUll POlsno lJllO JO JlWfIlIOSJP ltjl llltjl SQQJll llSun lfUJJlllHpUll Sllf lllll lJOd l1l IJQdOJd SI llJOllJ Sl UllllU llW Ol Al SSQOQU ltjl WOOJ

lJOd ltjl lAlosqll PlnoM l llltjl Ullsnfun Sl WlIl ltjlllltjl SPUllUOO VWOM Wll

jJJIlll SJql lsnfpll pUll MI AlJ OllJOd ltjl PlJoPJO JIOYJO lfuP SlJd oll

iUJllUBIj JQljlJnJ pUB IuJIBJO IUQnbQlqnsJOJ SQu1IIjh UOl80AllIO JO UO 8 UQl09d IUJOd JQId Aq JOj JlOldJ8OOJ pUB 01 QAIIOP ollJ90

JOJldQOxo SQAJBjhUOl80AIBO QIjl JO 809lSRJL JOpI1lO8 Oljl Aq pQUOJIUOO pUB pdBII9UI SQIlIlJOBJJOIjlO JO sosnOIj9JBA tpQ1j8 IISU91l 8lOOP SQAJeIjA Oljlll JO UO QIJIlA AlJodOJd JOIjIO JO 01190 AUB JOIOJIUOO pUB ApolSRO 90 IdQooB IOU 8QOP SOAJBIjA UOl80AIBO QljlJO 8OQ18RJLJO PJeOfl Oljl pUB JOJ

opoJd IOUop IJIBI8 1j11l pQlj8lqnd 891BJ 0111 omWdO 10HLNO J AQOLSn J lHY

fJ6 W91I

6 LI UO lOQlI JO lfUlullllW ltjl U tjlJM olqllUOSl lJUn

pUll lsnfun lJOJOIotjl OJll SQQJ SAOUJOllll tjlJM lfUUllOp E SOI JO uO lJod llltjlpUll Z S6 SON wlIlI llltjl opnloUOO OM 8 LI UO toOSJo OAllllIO A oqOl SluowllJjnbOJ PJP S OUO olqllmdwoo punoJ Slltj UO SSJWwollUO lOll Illlfol SQlllll UlAunJssooonsun lJOd otjl J SJosn osuQdwOOQJ OllJOd otjl IJ nboI lOU op OllJlSn Otjl lJlld OUO uo UOlllllfnqo 1lIlIlllllun 11 ISodWJ SWOl jJJJlll Il

olqllUOSllQJ pUll lsnf Sl UOlllllfllllltjl Ol QSjJ oAji lInJlfUOJMOtjM lSOtjl q OUJoq oq Ol SQSuQdxo UOlllllfJln lfUJJ nbIJ llltjllfUlWfllIO SWlIl otjlspuoJoP lJOd ollZ S6 ON WlIlI JO UO laloP S lJOd otjltjlJM JOAOMOtj SOIJlfll

lSun lfUJJlllH L SQSOll J SQQJ sAoWOllll Alld OllJOd otjl oJ nbIJ lOU SIOp lnqlulwlfpnf sUllllqo lJOd Cltjl JSIOJ SAOUJOllll JO PJllMll Ull SIJnboJ mlS WlIl otjl

llltjllfUllOU E SOI ON won OllUOWPUOWll S lJOd otjlOl sldooxo OSlllllSunlfUJJllOH snllolqllUOSllQJun lJll otjl lJnOO Ul SllllAlJd Josn Cltjl lUOAO otjlUl SQSuQdxo UO llllflU S Josn 11 lld IIJM lJOd Otjlllltjl opood lOU op pUll llOOJd OOJ lOU ClJll SUO SoJd OSItjl osnllooq llltjl uOJU dootjl Jo Sl 1ISun lfUJJllOH

n wwnl IWIIWoW I1n l QH

tpayton
Typewritten Text
106
Page 121: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J CC

JU Wpu we atp sAOIddu UO WwoJ lfJ PUB I1i Iyoq JiQJ lP IBltlJ SJ1 8U I WaJ1DPBl SlJ JO IIO S JlOd atU II

lOAro ql q lQY s su lddloq In UUM O lO puVi tJPQdS O Jl8qq VO puw llnWked l1IlH td x ll l8J nll 0SJxn JlllloJO SlU 8 JO pU8 SJ UIlO Jx l S SS M lSUJdBpgJ puaJ mq Plo Ql1SUJe88 JlQA J lU wro ue jddu 011lS l t SQAl sMJ1I4A U01 18D aql O Slsru O PJ808 1U

spnJ M0lI l t 801 oN Wlll 6L61 llsn8nv A JJ SaJ 058 SlMI jJJet SllL II

IU wJIl dQlllf1I8 AJBlfA U01AIBD ql WOJj IU BlqO oq BW

WJOj jJOqfJ lSlJd ql jO hlddns V J llBUBW IBJ UOO pUB J01YlJO Aln YlX3 ql hq jJOq JJ JdJ UUBW ql U pUB SWJOj ql uo IIY oq l80w 8BJJnWQJ d jO lU W IB1S IY lJOqJns IfPBj qJn WOJjIpBOj ollJUJ punoqlno liB UO 08BJJnwQJ djO lU W IBlS poY lJOB SOAJBqAU01AIBD ql jO lU WlJBd O lllf1I8 ql qlA IY lIBq AJBqAU01AIBDql jO 1 nJ jO pJBog ql jO lIPBJ ll 8lf n lu 8B JO pUB SJ UAO Ioql I A lIV

S UiUla VS atltuJnwaa IJ paifluaJ q

a nlIflm SLN3W3 LVLS ODUVJ

q 60 Wal

LI uOlYlS llllI0 lOU soop pUll l qllUOSlll1 S t 801 oNWlll lllql puy lM llu pUlllS1lpun S ql ql 1 lUlnbll lp Allnpll lOU SllSn

UO SUO llUllS llZpoqlnll Alll l l uO S ll Ol 10pd qlqM l Z 801 oN Wlll

llJun Sl lllld lUlnb lp llnpll lql Uo A UO SUO PUllS l WlOO Ol Wll lJllll Sqlllld1 llU l1 SlUlWAlld llup llwU lUlnbu lp Allnplll0u SllSn Aq Sl lllllJ JO

lSn JO ll Ulp l WlOO Ol v 80I oN Wllll l1WllU lOU soop UO SS WWOllllSl lllld lUlnbu lp lql Uo

A UO SUOPUllS qlns lsodw p noM Wll lJPlll lql lllql Slnlllll llod llll lUlnbU lP SlWO llq SlUnOOlll S lld lupd Sl JO lUO UlqM Sl lllllJ JO lsn JO ll Ulp

Ol lUlllll Ull lllfqns p noM Wll lql lllql UO lUllUOO s lSuno lluP1llH pUlls YWD1ll dSlp llllJO llllPSlld lql Aq nJMll punoJ SllM v 801 oN Wlll

P Bd uooqOABq IIBq onp llJBqJ J qlO UB ql A J ql llol sollJBqJ qJn liB mun IfPBj ql jO osn J qlJnjpo u p oq hBW pUB l llu nbuf p ql uo pooBjd oq hBW 801 oN wll U qlJOj IOS SB lU nblfI p

sowOYlq lunOOJB osoqA AJBqAU01 AjBD ql jO I OJ jO PJBog ql jO SO IfPBj ql jO JOSOJ qlO JO so uBdwoo lllfJoI AOl su llB JO pUB J UAO I ql os lIV LSI7 LN3fl

NI73aP80 Wal

I lUllllddll Al plll1 S UO S Old lql JO SSlU lqllUOSll l1Un

lql plpU llU lOU SllM llllJ lUll qlns lllql SllU1l1nSSll s llod lql ll dSlQ lUlllllUll pllllqS OMl lql pUll SlUlWAlld Sl ll lUlnbu lp l1lM llllll lql J lUnOOlllS llSn llqlOUll Ol plddll lq Ol llod lql Ol lUlWAlld S llSn 11 l WlOO p noM

Wll lJllll S 1ll llllJ Sl uo nJMll un l puy Ol Ullql1lql1l1 UO llll ddll lsnqll

SJJIlll lql uodn A UO UO Pll lllllp noqs UO SS WWOlqllllql UOlU llUOO s llodlql lllf l1 pUll LI uOlllS JO UO l1l O 11 lq Ol l Z 80I oN Wlll puy l1

11Sllllllq l llod 10J l q SUodSl1 Al lllWpd Plq

Alllld lql lq p noqs lUlllll d qsWllllS 1l11lql pun01ll lql uo Al ll11l S Wll lqlSlnlllll110d l1ll S llqlOUll Ol plddll lq OllUnOOlll s lldpupd lUO UO lUlllll Ull

Aq lpllW SlUlwAlld Sl qllUll l1lql U lsnfun S l lllql PUllUOO lsunO lluplllHpUll y dV YWD1llllJO llU P Slld lql Aq JnJMlllun punoJ SllM Wll S 1ll

l IPBj oql jO J OJ qlO JO Slu llB JO pUB J UAO J ql 8 A I U BllB IJ PUOJ mq lSOPIO qll U1l8B poA OOJ

lU wBd UB hjddB ollqllfJ ql SOAJJ AJBlfA UOlSOAIBD ql jO 1 nJ jO pJBog U J

S3DUVHJ dO LNJWAVJ

J 80 Wal

IAT ItrTr TCTA Ir11 t IT TIlT or 11 UTlt 11IUI 1Tn n Imu

tpayton
Typewritten Text
107
Page 122: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

O W ZZ

UO SS WW ql q pgIP SUOO AllnJ uaq IllDpqlJOAOU O lIl1 JOPJO 1111 ul 01 pwoJOJ JiIl80ypodlllOU lUoltdooxEI I

tfJIJ1IJJ JIJS 1UIJllilliliJl

DNDl10d J Hd3S0f S

UO SS WWOJ llll AglXlnUllUOOS P S 8U JdSjqlllllU a3 3a O 3H lliI SI U

pUll SlYldS lJ JlqlO 1111 U plUlP

pUll pllll l PU lUllX lpll WJj lql III pllUllJ8 lJllSl ljJoqlny lJOd jO UO lllJlOSSYll UJOJljllJ lql jO pUll SlAJlll A UOlSlAjllO lql jO SlllSnJ jO pJllOg UOlSlA

jllO jO Al lql jO SUO ldllX3 lqlllllU a3 3a O 3H lliI SI UpUll plUlP lJll AljJoqlny

lWJlJJ1lW jjnO lSlM jO SUOlldllX3 lqll1llU a3 3a O 3H lliI SI I

pUll jnjMlljUn K Ol

pUnOj SUO SJAOJd lql 8U llj lP SAllp O UJql M lJIlll plPU lWll Ull llY SlAJllqM

UOlSlAjllO lql jO SlllSnJ jO PJllOg lqlllllU a3 3a O 3H lliISI U

pUll Ajllll plWW lA lll Dl

plIl llUll l lJll jnjMlljUn pUnOj 80j pUll 86 soN wllI jO suo lJod lsoql pUlll 80j Z86 186 soN Wlll llllU a3 3a O SI I 3 Od3 3H

E1 ljqlluOSlllJUnpunoj lOU 801 pUll 86 SON WllI jO suo lJod lSoql lJlI SlI ljqllUOSlllJKOl punoj lJll UO SS wwoJ lql Aq Pll lJdJllU SlI q 160j PUlI v 80j v 86

J S SON Wlll 9j61 llY 8UJdd qS lql jO Ll UOlllS jO UOlllljoJA UJ Sll llllJd

ljqlluOSlIlJun pUlllsnfun lq Ol punoj lJ1I 186 oN Wlll U qlJOj llS Al UWlPU

lql jO llUllJnSU 8ujJ nlJ 86 ON Wlll jO uO lJod lql pUll plpU WlI SlIUlA l

SlSu dxl UOIl1l811lpUll Sllj SAlUJOnll ql M 8ullllp nOl oN Wlll jO uO lJodlql lUlwpU lWlI Ol JOjJd l 801 86 186 soN Wlll uo snjluoo uI

ljqlluOSlllJ lJ1I llulI ldwoouou JOj SUO llUlIS pUll SlUlW lJjnblJ S uo sJAOJd lqllllql lJOjlJ lql lpnjluoo

lM SlUlW lllllS l811JJnwlp Jl d 8ull wqns UJ lUlnbUJj lp AlIlInlllllOU soql jOSl8 ljJAjJd jlSSlA jO uo sudsns l WJdOl q 1601 oN Wlll plIlJ lOU OPlM

S SlJ 1I11 UJ

ljqllUOSlllJ Wlql 8upuy llJ811s p jlSunoJ 8ujJlIlH pUll lJOd llU lUlnbUJj lploU lJll qlqM SjlSSlA jO Sl8 ljJAjJd jO uo sudsns l WJdpUll snon8 qwlI lJll

Alqllllql U lsnfun lJlI SlUlW lJ nblJ lUlW lllllS l811JJnwlp Jl d lqllllql Sln8JlI

uo sJAoJd DjJlll Sql jO jlIAOJddll S JllYlO 8UJP SlJd lql 8UllSllOJd YWOM

po poWOJ Ilun saBoUAJd IOSSOA JoqlO JO uo suodsns JO l poJO

JO uo suodsns IUowu8 SS1l qlJoq J1lllUOJoJOJd JO uo suodsns JOJ osnllO Olnllsueo lluqs pomoodsOWll UJql A ISOJUUW pUU SlJodoll 8UJA OOOll JO 08uJJnwOlJO d JO lUOW01U1S poY lJOO olg 01

omUUil 811 us J01JU s up oJ UOl uuql J01UI10U POlY oq lsnw 08JBO punoqlno JO ISOJUUW

pUU SlJodo1l8uOOOllJO soJdeo JOOJolll nOlll JO o8uJJnwOlJOld JO lUOWOlU1S pomlJOO ou

slJodOll 8UJA OOOll oql JO so deo IOOJJeo pUU OnJl OJU poqS UJnJ so deo

oql luql 811 JllJOO lUOWOlU1S UJOAS U qll8uOl8 I A oql PJuoqu poPUOI 08J80 UO SlJodOll

8UJA OOOll nU JO sOldeo pUU 08JUO punoqlnO JO lSOJUUW S IOSSOA oql JO doo poYllJOO U Om uw

luo8u JO pUU JOUAO 8l IOSSOA oql o8uJJnwOlJO d JO lUOWOlU1S pog lJOU 8UlIY JO nOl UJ

nnT

tpayton
Typewritten Text
108
Page 123: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

I

l W U

tCJD1JJ JS lUD11 IIVDNDI10d HdHSOf S

lImy AP lIlJlSlU WPIl lWoYlq sllq IIlSS WS P lql AllJUPJoo lll pUll lpllW uooq

sllq UO lIlU UJJll lP q ms oN plJ dxl sllq Ml lJ Ol lU UJJll lP Plnouo ss wwolql qO qM Ulql M lwllqllllql pUll lJUlpllJQJd S ql Ul lUlllldwolql JO IIlSS WS P6L61 0I lsnJnv lql Ol UlJ lll uooq sllq IIllddll ou lIlql Ul lJ S lJ lON

6L6l Ll JJqumd JS

3UON

IL1 A1d VI1V111SI1V DNlddIHS OVdOIlNV 1VSN liID OB3I1 lVnI303M

011 VI1V11lSI1V NOI1VUIOdSNVlU 1I3NIV1 NO031VlooSSV

ON S3NIl 31111V iI

L1 6L ON 1 31000

NOISSIWWO3WUnIVW lVH30Hd

Page 124: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W zz 011

rlJtjl iUJlllJKIO SllM QUn crYd QUJ crYd QUJ lOQJ a 1l J1lJlSnv J lld

JO QUJIlU QPllJl Qtjl JQPun JAlQS lU O J Qtjl QlllJKIO 1llIlJlSnv pUll UQPMS

wopSUJI pQl Un Qtjl JO SillY Qtjl JQPun SlUQPuodsQJ QQJtjl QIU 1l111JlsnVpUll SQllllS pl Un Qtjl JO lSIlO lld Qtjl UQQMlGK QPllJl Qtjl U Z886 oN

lUQWQQJiV VlId Ol lUllnSJnd JAlQS lUJO 11 QlllJKIO tj tjM ilUQPuodsQJ p wllumtjl Qtjl lSU llill SQun lIQJJlld hq PIY SllM lUJlljdwOO SJIU

PV Qtjl 9161

PV iuJdd tjS Qtjl JO 1 UO pQS JQPun J1lAOJddll pUll iulIY QJJnlm tj tjM SUO S

oJd hUll UJIllUOO lOU SQOP lUQWQIllS JO UO llljndlSQtjlllltjl punoJ JQtjlJnJ

S l pUll pQlUllJi SJ QnUJluOOS P Ol uOlloW Qtjl MOjGK pQllllS SUOSllQJ JOdjllAOJddll UO SS WWOSQJ nooJ l llltjl pUll

lUQWrlJill I UO pQS 11 SQlnl lSUOO SQ lJlld Qtjl hq OlU PJQlUQ lUQWQjllS JOUO llljndllS Qtjlllltjl pug Qipnr Mill QA lIlJlSJUJWPV QtjlllltjllSQnlm jQSuno

iUJJ1lQH lU lljdWOO Qtjl U PUJlllUOO SU01l1l8QlIll Qtjl MQQJ Ol QJlllOl tjSJMhllW UOISS WWOQtjl UOll 1l hUll OllOQ qns lnq PSS WS P GK lU lljdwoo QtjlllltjllSQnOOJ MOU jQSunOiUJJ1lQH QUQAJQlU Ol P llIUJJKI QJQM jQSunOiUJJ1lQH

UO llljndllS QAoqll

Qtjl Ol SlUQSUOO 0SJ1l H Vd nllQJnH lJJJ1l Il SlljllJlSnv lSllOY lld Qtjl

JO JGKWQW 11 Sll hlPlldll il UJ QUn JlllS QnjH UQJQlIP J Qtjl QIllQS Ol aVd

pUll snqwnjolIQJJlld hq QPllW lUQWQQJill QlQjdwoo pUll hjUO Qtjl SQlnl lSUOO

pUll PUJ1llUlXlJlQS SJ UOlllljndllS S IU QUn aVd pUll snqwnjOlIQJJlld hq OlUJpJQlUQ lUQWQjllS JO UOlllltndllS

11 JO ltnSQJ Qtjl QJQM SjllMllJptjlA IU UO l

UQAJQlUJ ill UMllJptjlA Slltj SQUn snqwnjOpUll lU lljdwoo Sl UMllJptjl M SlltjSlUn lIQJJlld pnUJlUOOS p GK iU Jd lOQ qns Qtjlllltjl SQAOW QUJ aVd

6L61 L JaqUlaldas pazl1DUld

DNIQ33mld dO 3 NVnNUNOSIa

m ud VI1VlILSnv ONlddIHS aVdaNY JNVlLVSNVlU l30V lOlllu JvIlIla ll

m vnVllLsnv NOILV LlIOdSNVlIL lI1NIV LNOal LVIOSSy

alL VlI0dl10NI SINIl 111l1l1V d

LI 6L ON

NOISSIWWOJ 3WIIDIVW gatw

Page 125: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W ZZ

6L6J n qmW pm L1 6L ON II lU JdwOO 1101 JI W11 10U seM lluJJlldde JB1S lnlH O Vd O J ww B lweq OSr IlUu1lddB lUn JltJS mJO 6L61 tl hew JoJ JO00 I

lrY lUn crydlql U d qs OJ OJ qlJnoJ lqlJO UO pnpoJ1U lql lSoddO 10U IJM lUn snqwnjOJpUU SlUn lIlJJUd JlqW lW IIlYd U SU UWlJ lUn crYd su llUOj OS JlA lMOH

Yl pnflJd lnoql M lJU SlllMllJpql M Jpql pUll UO lUlAJ llUI PUlllU llldwoqms 1I pUll UO llld qms U 01 plJJ lJlJ SlnSS pUll SJlllllW lql lS IlJ 01

SlqllJ J lql lAJlS lJ AjSSlJdX l lUn cryd pUll lUn snqwnjoSlUn lIlJJlld

W 6L ONllUplYOJd lYlfqns lql U UO lUlAJ llUI pUll lll lljdwoJpql APAlYldSlJllU MllJpql M lJll SlUn snqwnjopUll SlUn lIlJJUd pUll Wd lql ql M

pllY lSnllMOqS 01 JlpJO JOJ UO l lld Sl llU MllJpql M S Slll lIlJJlld VIll Yd WOJJ UOlllull SlJ llu puoo Sl llllMllJpql M S lUn cryd f

Ml AlJ

JlljnlllJ Jlpun ldllj lq pjnoqs lpllJl lql JO S U lql pUll lUlW lAOJd1ll lIJnblJ SJlqW lW Sl lslluOWll suolll unWWOO Jln lq Uo punJ 01 III Yd JOd Z

lPllJl lql1I lA llOOWOO lQ 01 SJlqW lW III Yd lSlql l UllOO pUll AJOlllSUOOWOO lJll

qO qM SllllJ JO IJJllllU lJJnl II UO Jllll lAllq SJlqW lW IIlYd Sll lUn

snqwnjOJ pUll SlUn lIlJJlld lUn crYd lUlW ljlllS lql 01 Sl lJlld lql j

plMOllOJ Sll plZJllWwnsAqlJ lq lJll qO qM SlUllUlAOO lAY Sll YlJ lUlW ljlllS JO uOllllnd lS lql

PY lql JO Lj pUll 9j j SUOlYlS JO SUOllljO A plll lllll lIlJJlld JOOd qs JlqlO

AUll 01 ljqlllIlAlllOU SllIlJ qons ql M mn cryd WOJJ SllllJ jllYlds lAYlJ pjnOMpJlloqlllS lllql pUll ll jllJlsny 01 llNwnjOJ qSlJ1I WOJJ Jlqwnj JO JOOd qs

II llllllJll uu qllnoJql JO JIlSl S pJllOqlllS lllql plll lllll SllM l JlqlJnd

pJlloqlllS AUlldwollu dd qSpJlloqlllS Aq lJlld U lSIlljlll plJ llJllqo JO plUMO S l lllql JlqlUJ lnq cryd Aq

AjlA SnpXlplJ llJllqo JO plUMO lq lOU pjnOM cryd Aq lpllJl lql OlU lnd lq 01

pSSlA qlJnoJ lqllllql plll lllll lIlJJlld SllIlJ lA lUJlUnW lJ III OllJllO lUlP lJnslIllUpUl JooXl lJlM lpllJl lql 1I SJlJJllO JlqlO lql pUll l lllql SlA lllQ lIlJJU d

JnoJ OS3dpUll JnoJ JlpUUjJll l moJ snqwnloJnoJ lIlll11d rJqlql M avd lpllJl lqlll

SjlSS lA JlJJllO UOWWOO Urlqll l 6L6j fj qOJUW JO SU lQ 01 P IlS lJlM lJlqlOS3d pUll lUn OOJllllUlll JlpUllj

JUI SlU 1 YlU lJlJUOOUOU OMl lJll JlllS lnjlI pUll snqwnjOJ crYd lIlJJlldSlP SlQ lpllJl lql U SJOlllJOOO JlqlO AjUO lql lpllJl lql U Yl AJlS JOJ ljqlll IlAU

lQ pjnOM jlSS lA OJ OJ qlJnoJ lql Sll lWl lWllS lql lnoqll 6L6j vI AllWJO su III Yd WOJJ MllJpql M 01 UO lUllU Sl pYlunouull puq lUn cryd

spulllsI oYPlld snOJlwnu pUll pUlljUlZ MlN ll jllJlsny Ol

lI lJlq lpllJl lql U SllIlJ SlXY pUll O ON lUlW rJlly Wd ollullnsmdpllll lJOYlU lJlJuoo II S IlIlYd lIlYd nlllmlI jJJlllll SlljllJlsny lSllOJ oYPlldlql JO SJlQW lW lJll snqwnjOJ JlU lAJllll Sll lIlM Sll lll cryd pUll lIlJJlld

6L61 AllW 1I AjJlll JO j dy JO PUl lqllll lpllJl lql Olll jlSSlA OJ OJ

qlJnoJ IIYlnpoJ1U pjnOM lUn crYd lllql lIlJJlld plSAPll pllq pUll SjlSSlA OJ OJ

tpayton
Typewritten Text
111
Page 126: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

111

6 61 011rnanv

aJpn MfYJ iJt 11 rlullUpvNVOllOW 3S inllVHS

lOV lIl jOS 1 UO lOllS JopunUO lO p8jJnf UO SSJWWOollOllfqns 10U SJ lUllWll llllS jO UOllll ndllS1lL

pllnU lUOOS P SJ AqllJClIlI1U pIllOOJd lOllfqns 1lLllO pnfClJd lnolll U llJp

Ill UClllq lAlllI Aoqll Ol PClJJCljllJ UOllUllAIlllUI lU1l dWOpUll UO lIlOd 1lLUOlllll1jlljO UO lllU WJlllllllllll111JnooUll Ol SJ AlIllJClUlll1 AoUlll111 S 1I1

jO AOlOO CllIl pUll 111lll1jm 01 10U llSjWOJd 11 A llJllW S UjClJlllllUOWllllJl111 1lL

UjlJClII UO lll S1l lionsSlUllwClllJl111 OllOU lnq llJmllU I1U nUjlUOO 11 jO SlUllWClllJl1ll 01 Slllddll S 1 UOllOllSJllpun UO lOjpsjJnf S Wd 1lL SUOllllJlldo I1UjltUllUoo ClJnlnj 8l I1UjUJllOUoolUllWllllJI111 JO lUllWlJWWoo I1UlPUjq AUll llpllW Sllll Sll POO lll jO llUOU snq

JoqWllW a Vd 11 U1lWllJ 10U II JO II llUn avdllllllAllS tOU SllOpS IIdllJI111Jlld U UO lllJndllS lll Jllllpnd S llSSllA JnOj pUOAoq lOllY Sl pUlldxll10U II JO Ill llUn avd lllllAllS tOU SllOp S IIdllJI111Jlld U UOllll ndllS 1lL

UO lUllAJQlUIlU 1J dwOPU1J UOllOd J jlUj pllS1lJ SJllllllW 11l1ll1JI1 llJ 10U II snqwn O PUll IIClJJ1Jd SJoiJllllo lOOsIllUO S1lOOO sn d sdllS JnOj I1UjlSJXll 8l ulIlIl ClJOW ou 8lll11Jlldo pUlla Vd jOJllqWOW 11 SUj1lWllJ llUn avdSll l1uOI Sll 111111 ClllJllll Sll Plld llllJlIllllIl llSunOI1UjJ1lllH Aq pllSSllJ S JllllllW U1lW lll SJ SJlIl PUll S IIdllJI111Jlld Uj UO llPpllUI

UOllUllAJlllUIlU1lIdwo pUll UOllll d J lll Uj SllnSS pUll SJllllllW lll lllUl1JllClJ Ol

lql1p 1l1l1lAJllSllJ A SSllJdXll SlljlJ1ld llClJlllllll UOllll ndllS lll jO S IIdllJI111Jlld UI1JAlJddll S l uOllOllS

I1UjJ nbllJ SWJlll ou U lllUoo A Jllll O UOllll ndllS lll jO t IIl1nOJlIl 1 SlIdllJI111J1JdOlll UOllUllkJlllUl

lUjll dwoolllljl Ill llJPII11lIlA UO SUjlllUooUOllllJndllS lll jO tlIdllil111JlldllOUllJlljUOOlll Uj

Uj1lWClJ OllOU JO Uj1JWllJ Ollll1pt d OU SllJIllW llUj avd llW lAUlllll a Vd

WOJj llJPII1 01 11ll1jJ lll SU lllClJ llUj avd a Vd WOJj UOllllUI1 SClJ

I1Ujpulld 8l S llJPII1 OUj avd 111111 SllpOJd UOlllltldllS lll jO E IIdllJI111JlldSJllqWllW a Vd l1uowll UOllllo unw

woo llAOJdWj OlllJjSllp llllSllSSClJdXll AIClJllW uOIl1J ndllS lll jO tIIdllJI111JlldlUlWllllJl111 a Vd pllAOJddll lll pUOAoq

SllOI1 JO SllI1Ullllo Allou Uj lUllWllllJl111S SlllllJ AJotllsulldwoo UOpClllJI11111AlllISJllqWllW llOUllJlljUoo a1 VdlllllllOA1l8AYlljJq uOllll ndllS lll jO IlId1JJlIllJlld

lOV lil jO S 1 UO lOllS Jllpun IllAOJddll pUllI1UjIY ClJ nbllJ

1I0ll suo SJAoJd AUll UllllUoo 10U SllOPUO llllndlls Il 111111 pllpn ouoo pUllpunoj SJ l lUllWlllllllS jO UOllll ndllS lll jO UOllllU WllXCl njllJllO 11 WOJd

ll UOlUOAJOIUl pUll IUJ ldwOqons UJ pUt UOlmOd qons Ul 01 pwoJQJSJOIl W JO sanSSJ oql alIJ IOU saUJ snqwnlopUll saUJ1 lIaJJ d uol mp AmOJdWOI JOSJOIJ qo lodsIUOISVOOO Bnld aB uuOl olq udwoo JO SJassoAluowaovldQJ JO sd1ls JnoJ llUJISJXOIII U lIl QJOW OU Bal JodopUll JaqWQW 1I Vd sUJ WQJ oUJ1 avd sv lluol s UOllPPV UI

II

tpayton
Typewritten Text
112
Page 127: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

fII nj1 ZZ

3JUON

tfJVliUJiJS lUV1S SSVDNDIlOd J Hd3S0f S

lllUIJ AIlA lllJlS U WPll lWOYlq Sllq UO S Ylp lllql AlgU pJlYXlll pUll lpllW U

snq j lllU WJll lP qms oN plJ dxl Sllq UO S Ylp lllql M l AlJ Ol lll WJll lP PlnooUO Si uwoJ lql qO qM U ql M lUJfl lql pUll gU Jd S ql U UO S Ylp Ill l U

6L61 LI lsngnv lql Ol plIY uooq lAllq suold Jxl ou lllql UlApl S J lON

6L61 61 JiJqwiJldiJS

S30V SONV1SI NIDlIIA ONV

OOIM Ol1l30d XIS NI 3SV3K NI 3lV M lV113N3D lN3J1I3d

3AId 03S0dOlld ONVlV3S JNI 3JIA1I3S ONVlV3S

LP 6L ON l31JOQ

NOISSlWWOJ 3WUHIVW lV 3affiI

Page 128: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W ZZ 1 11

9 oN lUOWQlddnS IPUll l ujIJJASO OIll pUB00111 OlJdUf Od 01 P lJodUOS UJOBd sn 18 lIIWJBJ J1IJ ll8lI WOIJ 1Ul1ddB It ON d Ild L

I ON luowlddnS 8lJOd JJ1II SO01 00111 0ln0d II d WOIJ 1uJ1ddB ItON d ld 9I oN lUOWIddns OOllo Od Of Od 01 dJlno SO WOIJ IuJl1ddB at ON d Ild I

9 oN lUBWOddnS od opuunv llOOS S n01 00111 0ln0d Of dWOIJ IuJidd Lt ON d Ild t9 oN UOIUddns 00111 BOd Of od Ol d powpv llnos SO WOIJ 1uJldd 9t ON d ld t

8 ON luoUl81ddns 00111 Od UI8lJOd pow Od l V s n 1uJldd tt ON d ld t

111poypod 6t pow 9 ON uowolddns Od powPI UfBJfA pow dJlllllPl ow V SO IuflfddB Lt ON d Ild I

oop1ll1 01 opun Ol BWIIl I01MOJOJ oll poouid HIOoqJS 8 pu8 I Llg SO 9t 001 q8UOQal pU1 wnf ani fDl8J pomJOQ oql JnpoqA 11IltUftJA81 JO lIOl tJo11Q1llUc

6L61 Ot lJldV pw HIO IUJI H P OOldplOAul JO 8pJ0 Aq polOlJllulnuopBlplOA01 BqJ

LtttOl lId 9t OJnpooold pUB 88p08Jd JOIlOlftll Ltt Olftll U IIfWWO OI1 qJOJRp JAOJWJO IOU09CI U l VI UOfIIItuWoOtl JO UOfIJpoqll1woooq 111M UOJI100p IU

AlpOljlnv lJu dd ljS QWlPllW l 1I OlJQndJQJLIllO lJUlOOW lll Aq plJY QSllQJOU JllUW S 11 Ijl M QP OlJl Ol 6L61 1 AllW

Ol pluodlSod SliM QlllP QAlOOjJQ Sl lnq 6L61 I1JdV QAlOOjJQ QWOOQq Ol pllnplljOS SliM pUll 6L61 nAJllnUllf plJY JQllllW jJJlll U pQSodOJd SliM QS1lQJOlJ

Ql1lJ Q1IL pUllJ llQS OUI OOJQS PUlll llQS lUQPuodSQJ Aq plJY QS1lQJOlJQlllJ llJQUQB lUQJJOO S QAY 11 JO tSSQU nJMB Ql l OlU tUOlBlJ lSQAU plljpgdXQ UB

pllnmSU UO SS WWD Qljl BSv8 pUll Sv8 is S 19v plPUQWB S1l 61 JOVlJu dd ljS lllSBlJQlUI Qljl JO V pUll suolQS pUll B L185 S 19v plPUQWUSB 9161 lOV lJu dd ljS Qljl JOZZ pUB B 81 SUOlQS JO AlpOljlnll OllUBnSJRd

13 DO1f AWl3AUV1I1SINIWOVlI3 ZNVlD lInOWA3S dO NOISI 3a lVUINI

unoo liuJSOH ss aalMIJtf H alloJ pUll Jall1Pl SGD linoa J SJI1MH IJaqOH YOISPUBISI UJllJ A alll jO IuawwaAOO IUllllalOJd JOj U4n 1l U4Dlll1M

OUI OOfAJllS plWJ uas IUOpuodsaJ JOj JatJunJll fP DUO

orqSUOSBaJ pus Isnf oq 01 punOj sapBJI SPUBISI lI 81A pUBDOlll OlJalld XJs 01 alqBoddB OUI OOfAJaS PIWJ uas q paW aBBaJoll alBJ lBJauo8 IUOOJad MY V

6L61 61 JiJqlUiJldiJS PiJZl1lJUlJ

SI0VlIl SONVISI NIOllIA ONV

OOIlI mllilnd XIS NI lISVl1l10NI 1I Vl VlIlINlID lNlIO lllldlIAId cra SOdOlld ONVlvaS ONI iIOIAlIlIS ONVlVlIS

Lv 6L ON

NOISSIWWO3WIlnrvW lV1liIO 3d

Page 129: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

n fj

P19 RM JU IllJHIa8 al1 u qM atUP I1fl 6 619Z nmuuf uo 1 UJ IRJ 111 l1 M a nfllpIooo8 UJ 6L61 I eY i1upuawwoo uo SSwqns It ON J JQ IIU U pQpgfOJd 11

PUll SL61 OE JaqUGlhON SUpua I1lQ g 31jl 8 oo uo SSlwqns 11 oN Jap1t8 U JOl q utl IIY PU8J mlS aIOpJaU6L61 tl J81U d l jp 9 0 5 lrdJ 9V lnHUO SS WUlOau SLt S6 Id 8l1 luawadw lnlll1unpooJd

S UO SSJwwO111 JO 13p Ml Q1J 111 OJ JOJd IRq SLt S6 Td O 8p lP 3111 Ollu nfmqns 119 JM U alllJ 1f

SUJplQ Jd H llatoo lI00 J WJlql1ou PIP VWlId 6L61 01 eVII uo u JaJUOO 8uJ qJd 11118 JeaddulOll PlnoM 1 ltllll Sll d 111 llaSpnf 8ll PIWd 3111 unp MrJ W AlfUtllS pnI M1FJ lA lUJ1Su wpV1911oU VVHld 9

uospop S tp 01 XP V 011 SB SJ1rXkIeuod J pull suon nb q1JOlXallfllJ q SUOllYlnb lqS 111 OJ SJallSlre ltn nl1SUOO OOU M II pg a1aM ql qN JO liB 9 puB90N qq tXa jO SUO Uod q patu w Jddns Ire t ON l q1lxa lelfl pooJ88 l 1ll SU d ll Ul 8Ul1ldp U1ld U1ld ll

6L6Tl L6911111S 81 JU 1 IIU1S PUIY O1SJU saulmpu UDJflmJY uOJ pU Wlllre 6J V Slfdd l S IVlstlOOJ lUI lU J un JQ11lJn8a1 alllpU1l 1VlS pg1 un l l JO

J WWOOuSalOj ll U lOU pu1l p1lJ1 aloqsUo lslUOp 1 1 U alll 8U1plll JO mq q8nOJ1lllJ pun OO lI oJnd U1lRr UllS 01 J llM

Aq IlOU tp pUll rN 1 l 1ll la O1llp1lUBWOlj JlJ lI1lI J010W q spooS jO slu wd 1 s 18ql pgU WJ lap lre1 UO SS WtlKQ lfI

ullda1 l qOJ 811 UOH1l1U Jd 11l 8j atU qJnlS P10U mlSUJ1U S1 1 UO SS WWO111 jO UO Il pslnf 3ql 01 pafqns al1 SIJI1Q J lllf1lJ111 jO UO lIod J311l1ql 11111 u l 1 l 1 uo pall lreM 8uJ d 3lp m1lxlq ssl13tjUIMaN palUllJ8 PlnOlS anUluoosrp 01

uonow ltjlAJSUpl V UO SS WWDSl 1 jO UOn PSlnf al l pUOA aIll paW20UOO S 1lJ a1 l jO mUlnjllIJ 1 1 jO SUO l nba1 l S1l

JlljosUSIJI1l1 J1 l atj1181 1 SU1rW mnoojO SJlfI SUIIOllUOO aq 01 SJ1lOOdll LNL a1 l SUOpllJado J lllll llJIre uOSS wwOIlOJawwOa18lSJa1uI alp Aq pa11l njuS01l am quawaAow aq1 pu8 SU1ll J 1I Ja1llM I1lJ l llj U U1l sSUllnOJ J 181I1lJoJOlOW

alp II J W1lU sUod l8lS pa1 Un a1llllquawd l s jO JajSU1lJ1J1lI sAld 111 Z pu1l puJdx lre1 os SUOP JOj lW l 111 pueL1fL llp u l8JOUIlO lq8nos IOU SlI1 UOSS WWOXII I S1lllnWS1lUI LJfL XII UI Japun SUOl8JadO J lllM l llJ111

WOlj llqll1 Sf1SU lSP Ull s8U lnOJ J 11lM 18J JOj lpAOJd OSl8 111 sSU lllOJ Jl1llM I lJ0l0W JOj AoJd kl1H Ire mjosu SIJItQpa1P 111 11l11 Z PU8 pal dxI IOU pll1 LNL alp u l8JOU jO lll JOj UO I lad II 8UI9JOJ wp l l m1lxlq UO S p JOJ adl

Ul1 l IOU S1lM UO 10W lpllllp I pailn lSunD SUJl1t H UO lOW llp 01 Idal 51 UI p8J1 alo1 SUO 1sawop ql U quawaAOWJl18I oIBJ JlAQ UO lo psJlnf l snl Xl S1ll UO SS WWOoJlWWOJ llll1SJ UI aq111l1 1 PIllj ql l 1 LJVL 6L61 J 0 6L

6L Pz ilZ09 JI dJOJ uodSUDJL i1U IltJjf Jal1DJL lI Uo SJ p lU aq1 uodnplS1lq SlIM UonOW alfI t ON Wil pU1lt ON il Wil sUJtQ SlI AIOAU UO ldlsaAUl 1 1 JO uO lIod 11l11 anll lUOlSp 01 UO lOW 11 POlY PU1llrJS SU J1lal aql 01 JOJld

sSlld jJJl1I1 JS lJ paYloads Z pu8 Z ON luaw lddns jJp8L1lplUUaJUI asmr MaN 18 lSUll1 OlllUI 1 l M S1JOd Ull PIIU8pUll OOfM 01l 1ld U1lnr lI1lSUlaMlaq SU ldd8 S ON Wil 6

sal lJodlllSYlllld Sn III SBU WJ L S JJlI8 1 1l1l 01 sPUlllsl u8l A son 111 pUllY 1I OlIand U Sllod WOlJ SlIAlddll t ON I Wil 8

Yllp UYlq lAlllllllllp S PUllllas llU pJlllllJ SIllJll JO Jljwnu 11 111 llU llllS S1OlA l lSOlll JO llOU JOOlHIO lll lAllllU lSlJd lJ 1l OUllUY S PUll llas pUlllJlllS UYlMl ljSUO ssnoS PJlljll lllJJoo PUll llas 1I0 lIM SJOJJl U 1lJl llll lp lJlllS lll pUll

1llS Aq n wqns lllllp IlPUllUY llll JO SSA IlUll Ull pnpuoo lJlllS slWOU

Xl3 AI1SnpUI JO nlllmlI S UO SS WWOJ llll lnllSU SIlM uOlllll lSlAU lllllJOJlq pUll SUO Ss wqns I JlpJO IlJlU lfpUll lSIllJOU llll JO llulY llll JllN

aNflO DlJVlI

LTE61 lOY lllldd lIS lllSllooJl1OI llll JO SUO S OJd llll PUlWll Mll 11 L17 176 Td OllUllnsmd llUplYlOJd

llll JOJ l n lIos llmproJd 11 lIs qlllSlOS ll sllU 1I1 JllllO llUOWll HIOlqZ17 LO M rJ 917 lmproJd pUll l lOIlJd JO Sl nM S UO S

S WWOJ llll JO Z17 l nM OllUllnSJnd AlJlld 11 WllU SIlM lsunoJ llll JlllH SlUlllsllOJd WllU lJlM

9 YWMd UO lllOOSSY SJlmpllJnUllW oom OlJlnd pUll IAJO 1OlWUJ lAOD SPUll SI lIllJ A llll JO 1OlWUJ lAOD llll lUlpuods lJ llll WllU

SIlM PUll lllS llllplYlOJd llll 01 Sl lJlld SllllU MOOJ llll WllU HIO lllllUplYlOJd S 1I1 U WlUOO IlPOOS

JO SIllJll JO 1OlwdO lAlp llnpllJ JOJ pYlU llll llU SSlJ1S SIlM UO SS WWOJ llllSllllJ llll JO SSlU nJMll llll 01O AJ nbu llJlAO llll JO lXllUoo llll U 1I1 M lllql

UlllW 01 nJ1SUoo ApOOOJd SIlM lIdllJllllJlld lll SIllJll S01l1 llllU Ilp UO S

SWWOJ llll Aq sod suols lnb X S SIllJll JqS JO uOlllll lSlAU Ull 01 l WIljllllplYlOJd lll llllll JlpJO RIO llll JO lIdllIllllJlld llUplpJO pUoYlS lll

I T T 1Cll 1 11 lll r rrI tT I t

tpayton
Typewritten Text
115
Page 130: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

11 ZZ

T1Jdtll t U OOS

lJod 01 lJod QJ1I SClOjAJas Jl1I10 jlV JllUM Aq IOUllIl puu

1I1lquz1l3puU upuuu uIIM1 lq lOtUl JO llUJ U pUUjJlAO slIljAJas ooll OlJlnd

UUIPUUU l1lluunr uus lU lUlwdlllSSUUJl plAJas SJ lpllJl spuUjSI UI8JA

nnO OllUUlV l1ll8 uOlsnoH jO lJod l1ll U 8UJAOW 08JUO 1111 1ll1M slJJIUlJIlUM jJUJ lUJof lJU SlJlUl SPUUjSI UlBJIAlOrn OlJlUd 1SUO lSIA l1ll

dIlls lUO SlJJUb IJpuu AIlIIMlq SJ IljAJas OIlUUjlV 1I1nOS l1ll lJOWJljUH uunr UUS lIDUOS

lOur IIUUUUAUS UOlSljJUII lJOWJljUH IOulnbasUJ SlJod 8UJAOIlOj 1111 SlAJas

IljAJ IS OIlUUjlV IllnOS 1111 plIlUO puOOIS l1llsdlllS JnojSIJlUblJ puu AIlIIM SJ

IOjAJas lUIOSIJ l1ll 1I1lquz1l3 uunr uus UOls8uI UOlsnOH SUUljJO MON

UOIUW1lr UOlsBUIuunr uus 1I1lqUZJ3 Ilu lnbQs UJ SlJod8UIMOIIOj l1llSlAJas IOjAJas lUIlSIJ Olll pljjUO lSJY OlllSOJJUJOup IluJUdas OMl UO SjassoA

lAY 1I11M spuUjSI UlBJIA olll puu oorn OlJOUd jO IIpUJl ollSlwop OJOlIsjJo gill puuslJod lSU oYloud pUll nuo OIlUUjlV SIlU1S plllun 0111 SlAJaspuU J UOS

SOYif

8UJpIIlOJd 0111 UJ gnSSJ poYJOOds U SU popnjoUJ SPUUjSI UJ8JIA 1111 jOAWOUOOO 1111 uo asuIJOUJ OlUJ posodOJd 0111 jO lOOlJO CllIl OAulI 0l11l8nos UOll lOOCllll6L6j E Ajnr pouas uOlSSJWw 0111 jO JlPJO A1 POpllp SUM jlSuno

8UPUClH puu PUUJ UlS Aq pISoddo SUM 1I01llM 6L61 tZ AlIW porn HIO l1ll

jO UOllllJlPlSUOOOJ JOj UOllllOO S lUlWW lAOO llllllllllPOlOU oq OSjllPj1 OIlS 1I

SlSodJnd 1111 JOj lW01 poU81SSUIJ SUM ClSUO 1111 JI8ms wOJj 8uplAOO IJ SUM MOJ l8pnr lllIlM SlIlJ1ld

IIU Aq plnlwqns Alulof lOUj jO s8UIPUY posodoJd puu pJOOOJ POlUjndllS U 01

plj puu jnjlltUj lJOM suolssnoslP luuolllPpll l1llsuolssnoslP onUJluoo 01 SlllJUd

llllllUUOO 01 sBUJJ1ll11 1111 pasSIOIJ AjllllJpoWWJ I SlllJud 1111 jO OAllulul 1111

puu s8ull ulJlpun S MOJ 8pnr 1I11M lUIlslsuOO JClAlMOH JnfUl lUOlsAlld U AqpolU1PuduOUl AIJJUJodWIl SUM MOJ08pnr lSnulIq 8up1ll11 llIllU plpJS lJd I

8upUl1I 1111 01 JOJJd UOllUJndllS U uo lUlwx8u lIouIJ 01 SlJolJo SOllJUd l1ll

plJOOWUII spuuISI ufSIlA l1ll puu SIlUlS snon8Jluoo 1111 u Mllq uOllUOlunwwoo

puu IluulslP jO SWCllqOJd 1111 AlqupUUlSJlpUn PJOOIJ POlUjUdllS U lU oAJUu01 PUlllUlWUJClAOO 1111 PUlI jJlllS 01 UlllP jUuolPpll ClpOJd puu1 uClS lAulI

01 SClOUIJllJlP lUOUOOIJ 01 SliM ISodJnd QIll JlSun 8up1llH lpnlOUJ SlWp

owos AIIW jJlllS Ol SClOUlJClj IJ Jlljll IJOH llSuno 8upllOH puu lJUlS 1UOWUJIOO l1I1 PUU1 11ClS U MlQq SlOU1UOO snOJownu ClJOM IJllIl 6L61 Z lunr

pUU 6L61 IZ AllW UOIMloq IlUClJ ljUOO 8UJJ1llIl lJd 1111 uo dn 8ulAOIlOif

6L61 Z lunr JOj8UJ111ClII 1111 Plnpollos pUll 8UJPOOJd pouolJOIIS U puu PJOOOJ pQllljUdps II Ol AIOlllWJljU pOI 1I011lM SJClPJO

jUJnpoooJd jO Jlqwnu U ponSSJ MOJ l8pnr IOUlJojUOO iUJJ1lIIIOJd OllllV

IIoTnlQCTTATJAI nIT It IllJW Vl nl OTT

tpayton
Typewritten Text
116
Page 131: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W j II

UJTQ lI JO OlllrN Seq llU WOOU 1N6

IIlllS JlllA lYlfoJd lqlllupnp UO lllJU Ol lnp lSUOOXlplSll lJlU JOJ JOllllJ 11

JlP SUOO l SOOp JOU 6L61 I AllW JlllA pll YlfOJd lqlJOllu uulllq lql Ol SL61OE JlqW lAON JlllA lpOlSq lql JO PUl lql WOJJ plJJn llO lAllq AllW qlqM

UOlIl JlI JOJ JOpllJ AUll lpnpU lOU soop UOllllndwoo SJllllS lql llll d1ll llu

lJOM pUll lSUOOXllllJ lUlll pUll lA lIlJlS U WPll dNSUO l1lllJ lSUOOXlllll lIlJOOO1lSSlA lSUOOXlllU lIlJOOO 1lSSlA llndwOYlJ Ol plsn Ulql SlIM lSUOOXl Jlll lllUOO

pUll IllU UJJll pll YlfOJd S ql lSUOOXl Jlll lllUOO pUll IllU UJJll pll YlfOJd 11 III

lApJll Ol JOllllJ lWnIOA pll YlfOJd lql Aq lSUOOXl JlU lllUOO PUlllllU UJJll lpOlS qlqlllu Aldllnw plAIOAU UO llllnlI1l llqllll11p lpOlS q lql Ol lWnIOA pll YlfOJd

Sl llllAlddll Aq UJnllJ JO llllJ pll YlfOJd S PUlll IllS pllndwO YlJ IIlllS

SSOI OOlI L ssol lffLJV I IB10L

ssol OW 99V ssol 9S0 OfS SPUBIS U llJlAlOllIOIl nd Y Bd s n

8801 OVI fOO SSOI I 09l OOllI OIl nd JlnD s n16 9 090 6l1 S E6 fOl oollI oll nd

lIUBllV 41noS s nssol OSI OL 1 0 ssol 06 Lf9 OO lI oll nd

lluBllV 4110N s nssol OVI 90 ssol SOVEf SPUBIS u3JlA lsOOlS3ssol Ol9 01 9fLlf OOllI oll nd BpBuB

uJmaN awoJU IaN uJmaN alUoJU IaN

10 aloN JoaA paJa oJJ 10 aloN JoaA JOISH

lJll JlllA pllYlfOJd lql JOJ UJOllJ JO llllJ pUll lWOOU llU JO lSllYlJOJS PUlll IllS pUll JlllA lpOlS q lql JOJ UJnllJ JO llllJ pUll lWOOU llU lql

OOO 9fl I000 OLI I

OOO U9 fOOO 6 S I

OOO l S 1Ooo lOOO lll

JoaA paJa oJJ

1 f9O SI619019 S

91S IS f

06L 66l1lIS fO 991S OL Llf

JoaA JOIS H

IB10LSPUBIS oollI oll nd Y Bd s n

oollI oll nd JlnD s nOO lI OIl fid lIUBI1V 41noS s noollI oll nd 1UBI1V 4110N s n

SPUBIS ullJ A 1SBO183oollI OIl nd BpBUBJ

SMOIIOJ Sll lPllJllql U lSllq ll1lJ Sl pllndwoo PUlll IllS llulY II ON JlpJO IllJlU lD Sl UI

IT T 3SV31INI 3LVlI V1I3N3D LN31I3d 3AH 03S0dOlId

tpayton
Typewritten Text
117
Page 132: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

11 ZZ

lIJ81og0 qUUUlIABS JO lJod qt 18 SIl90

lanA PJO UOH PpS glltJO IlnPJ 11 nOOO t I q pmtalOU 811M ap1lJl8l l U asUKhta JlU 81UOO ptIBll1U UUOl JporOJdtUOl1lOO1 Jlno NAJa Op1lJl

1 081nspuelS uBJ AOO llOlJOlld omoBd Sfi 01 OOO 9VtS PUB OOlll otld J1no sn 01 pQll1OOIl OOOLttS qlfA p8Jl IpU8181

UJiJ AOO ll OlJRd ogpsd SO pUI COlli OlJOlld nnO s n oqll1loq 01 111mIJ1l UQOq IAlIq Plnoql lUOWlslAU OOO tLlrS OlpJOMWtOH gp1Ul 00111 OlJand JJllO s n aql 01 Op1lJl 00l1l OlJOftd OIlUVPV qlnog S O ql wOJJ l WIIO U lU8JO pUll lI11OBJ U1

OOO tLtS polnllSpIS UO l1lnB U1 duall litJO 11 11 IV XlPuoddv IUOflltlOlJlnn 01 08 PUIIIUOI11lOO1 ollu81lV l tROS01 poiJlqo AROl9 lUaW1BQAU aql JO Wt 11111l1nq 1OOJl800InoD pUB ollulIllV qlROS UOraM AIUao 18oolll uaoq Q vq10U PRoqs

Inp3 OJd 01 1 JOJ lWtu1IOAUI OU8JpUB A1 P1lJ tUlI P0181S P1lB1 US HIO aql JO u0118 mO 01 auodiaJ uJ

1uolloofOJd WOOUII PUl1 ns WOJJ lIJlCln8 8UlaJnig 8Jl1 uOPU1ndwlOQJ

IIJJ1lS uI I lU Wl Uny x pulKldy qIIOO PU1l1J AO JO 1tJW1GJ1 olll U1 oBuulp lununooou uu JO 11nllOJ 11 18 000 1

q panJU11l81 OP8Jl8Jl l U 08uodxo JOU 1I1UOO w JlIU UU oqll8l1 111118 pU8J1IOS HIO oq1 JO 1 uOl nO 01 QlUodlOJ UI 01

qSnOug SglllJgUgS qlqM pUll SJISJ SU pUodSgJJolSUAllq SgSSgU Snq JgqlO U

SlUgUllSgAU UO gpllW AlIllJgUgS lllql Ollllnbg UJnlgJ jO glllJ II UJllg Ol pgMOllll S

JgJJll l lllllql lYollJg U Ploq sgSlll gSoq tt6l 16S s nOZE OJ StJD tJJn

ltJN adOH U01SS W UlOJ JaMOJ tJJapalpUll EZ6l 6L9 s nZ9Z tJlu8J1AIsaM fo U01SS1U1U10J aJlt1Jas JlqnJ lfutJdw oJ IUlJUJaoJdUlI putJ S JOM

JaltJM p ayanUI U pgqsnqlllSg Slsgl gql Jgpun pgU WJglgp gq Ol SU llWgJ S qssgUJ llj Sl qsnqlllsglQU SlOp JgAgMOq Al nbg uo UJnlgJ jO glllJ gqlSU MOUI

8 U t7SElllllHIS 81 tJJdns Ill UOSltJJV lllnWJOj11lllllWgqlllW Aq UOllllndwo l jO gjqldQ sns S Al nbg uo UJmgJ jO glllJ gql

UMOID gJll O lllJAl nbg lqgp pUll glllJ lqgp jO lSolpgppgqW lSllq glllJ UO UJnllJ

jO glllJ SJOlllj lQJql gSoql gJgj1 L8E 1 gq Ol OlllJ Al nbg lqgp S PU1l1 llgS

pUll 98 6 gq Ol gl1lJ lqgp jO lSolpgppgqW gql pgJllUg gq Ol PU1l1 llgS

punOj gq l1lql glllJ ll EL ZI gq Ol gSllq glllJ UO UJnlgJ jO QlllJ gqlSU PUY OSJllAq Al nbg uo UJnlgJ jO gl1lJ gql gq PlnoM E LIlllql pgpnpuolUllwd qS JW

J llj gq PlnoM gl1lJ Sqll1lql pUll E LI gq PlnoM Al nbg uo UJnlgJ jO glllJ

pglYolfOJd gqlllltJl pgU WJglgp gq IIIUOSltJJV U UO SS WWOgql Aq pgAOJddllSpoqlgW 11ll lAlllUll pgldgooll SU MOllOj lllql SglllJlSUOWgp AUOWlsgl SH

gnSS S ql uo AJlSgl Ol SSgUl M AIUO gql SllM lS WOUcxrllJlllS II UllW

dqS uqof IIIUOSltJJV Jglj1lQJgq 8L6l LSEl t7SEl ISEllHIS 81 aptJJL

aJolfsffo J Isawoa l1tJMtJH IStJOJ J1f1JtJJ saltJlS palufl all ul saroaJJUI altJH

pasodoJJ IfutJdw oJ UOlltJB I1DN UOSltJJV Al nbg uo UJnlgJ jO glllJ S JgJJll l

II jO SSgUJ llj gql Aq punsllgw S gSllgJlU glllJ j1lJgUgS II jO ssgulnjMlll gill

NlIfUHM i10 H YM lilYd

ML 09E 9SI OOO ZI9 I1 lllOssol OOOIE 000 091 1 SPUU Sj UJSJ1A

00111 OlJand ypud s n

SLS OOS 61E OOO ES9 E 00111 OlJand J no SO6HI 09L OI Z 000 LZ6 I 00111

OlJand lUullV Innos s nSSO 000 911 OOO 6S9I 00111

OlJand lUUnY qlJON s n6L 0I9 E 000091 SPUU1Sj uJSJ Ahsuo1S83IL I 09 1 OOO SEZ 00111 OlJand upUullJ

UJmaHfo alDH I OJJ IaN aSDfl alDH

J1lQA

Pll YolfOJd gql JOj UJnlgJ jO glllJ pUll lYOJd 19U lSllq glllJ SUjMOllOj gql SMOqS

tJnT TWWCY WllnIVW lV l1 QIT

tpayton
Typewritten Text
118
Page 133: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W zz

SpOOJI BlI I ssuJO 1 UJnt J O Q1BJ dQP QlIl pnpU 11 lJQQ JOl1JlpU JWddB un 1011 S uo1BlJodSUIU1181O I

pUCj ClS Aq plllm SC plq mll lq lqll W qlqM SUO SnpuoSnOJCA lloddns Ol

PlYll lql U uOlCpunoJ OU S lllql lSnCllq pll lp SUOlq lOU Plnoqs SlOllCJUO WYU Wql AIlA lCWlllJ C SllOU OSJC n wnlYllC OlU UO lCYU lluPICllnoql MplplllX l Ullq lOU Sllq MillS Aq plWln lllll Ulnlll JO lllll lJqllMOIIIl lql lSnllllqUO S llp lql OlU lllU l lOU lnSS lOpllJ UOlIlYU lql SSIl lUlWUl lAOD l1JL

Al nlrluo Umlll WlllOO f LI UllqlllMOI pUll lSllq lllll uo

UlnlllW lllOO fLll ullqlllMOlll lq PlnoM llnsll lql pll lp SUO lllM lOpllJUO WYlI lql J lllql Slllllll n lA WAllSUO SIlM lUnlYllll OlU lOpllJ UOlIlYlIAUll lljlll lOU PIP qlqM qlllOlddll SJllllS Wql Slplluo psun llUJll lH

Slll lWJOO SJllllS U ql M IIlM lllM Slpllll 1I11 lOJ pUll Slpllll

Illnp A pU lql U Al nlrlpUll lSllq lllll uo Umlll JO lllll S PUllj lllS lllql AIlA S

npuollOW UlA l UMOqS lq PlnoM l lP S lAlIlAl lSUOlql UO lq Ol SllP SUOPUllj lllS qlqM sUOlllfOld SJllllS U lOPCJ UO WYU uC plpnpll seq MillS

J Wqlllu Moqs JO lsodmd lqllOJ JlJq llUplllq lsod II plll wqns PUllj lllS

S 3lLVW lVNOulaay

AJ nbu Ill lOOS S UO SS wwolql AJSlIlS XIpuoody lql U

lllOOdC qlqM suols lnb ply s XIS lql Ol SllMSU C lqllllql llqllnJ puy IInJMlll llOJll lql pUll lJqllUOSllll pUll lsnf

llll uOlllll lslAu llpUn llllllW MJlll lql U plll lllUOSlllll lqllllql UMOqS SllqpuC UO SllnSlOO JO Ulplnq Sl llW Sllq PUllj llS Wql puy I Alllu pllYllY

llnpold Ol plull slp SIlM lSIlll lU lllll IllllU lll lql

qlqM SlnU lAll pllllfOld IllUOmppll lql spllu PUllj CSlllql SlSOPS PllU lP Al

lql JOllUlll lpuodlld lql AJllllUOlqlol PlYll lql U lluJqlOU S lll1JLInJMlllS lSIlll lU lllll IllllU lll lql Wql llJlill Sl lllld 1I11 sJlpq llUJll lq lSod uI

NOISl1l NOaNY NOISSl1SIQ

Slpllll lql U PUllj llS lOJ Al nlrluo Umlll

JO lllll l IlJ llq SS WlOO WnW XllW lql S f LIwql pUll lSllq lllll uo Ulnlll

JO lllll l IlJ llq SS UllOO wnUlxllw lql S fLlI lllql SUO lIlU Ullll lP S UllW

d qS lW JO Alllln llll lql lplluo Sllllld lql AIUO llu ld S ql JO slsod

lnd lOJ snlJL Slpllll lqllllllOJ SSOIIl Sllndwo PUllj llS f lq Ol Slpllll

lql lI11l0J Umlll lllllllAll lql Sllndwo MillS lql lON llqllUOSllll SllP SUOullwd qS lW lllqM plllX l lOU soop uOlllll lslAU llpUn lpllll Illnp A pU AUll

lOJ Ulnlll JO lllll S PUllj lllS lSnllllq plll WllXl SSOlllOU SIlM ullwd qS lWplllllllU l

S PUllj 1llS qlqM U Slpllll lql ql M pllll lOSSIl Ssp sSlu snq pUll l WOUYl

lqlJO Ml U AIIIl lOOSl l IlJlq Ol fLI lql punoJ u llllll pUll fl l 8 UOlllllod

SUllllllllOl pUll 1 8y lluPIlnlll l ll1ll uowwoIll SlU Jl1lJO Sllll Ullll

8L61 ql M fLI lql plllldwo OSlll lH SlJlsnPlI SlllllS pll Un lOJ Al nlrl

uo Umlll lllllllAlllOJ lJllP Pl ql lql U ljUlll PlnoM PUCj llS Wql punoJ puC

LL61l0J SlJOOJ puv PJvpuvlS Aq plzAlllUll SlPlSnpU qlM fL1 lql plllldwoullwd qS lW Illl dlll Plllllll pUll lpll l Sl U lllU IlW Ol l MOIIIl Ol lnUlA ll

TT 3SV3 NI 3LV lV 3N3D LN33d 3AH 03S0dO d

tpayton
Typewritten Text
119
Page 134: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W zz

q OJ lInll0JI01 UOJlllWlllOUlUUIO opun

OOIIIWIllO1OI11lI lIoqlJlOlI1OUIO 0111 puw EL61l zn m s nOtt 0 111100 1rtpJO4 S polllnuodo llJ1I dvtpoooold lup wotn1l1lI1WWClO OJ JIIIOP nq IuJll1lwotOJ 0AJI1I1I1tI1II IlII PO POPUO Oll

SLrS6 d IutIwotdWlI1qpoooold IuJlI1IwotOJ flJn oq1 qlOOlll 11loq1l 10 10IW1IJIAOf 1II H

OJOlI JIIjIJ11J lD01II 0l10lJ0l 00tIJ oq pftOIt SLrS6TdjOIUlJII1IOO olDlolll n I1qpoIaoId 1111 JO 0JII1I lIl podoq1 pOllutpoooold I1ll0 I0Il111 0111 JO UOJInlOllJ JOj 1Il llJ1Il lUUJIAO oq1q JlOII1I lDoq101O

6L6 s VS SL ON l lOOQ 1 JlIIOdoJd zlsl lI dO 91 1l 1I1q1l JlIIOdoJd oq1 DO 1 0UIUlCl0 JOj wp 1II 01ll1 qlpDOllJlpUO II

1I1 louo oq SLt S6 dIutlOl1llOldIUf IOJ I ONJIIlJfJOUOOnOl JIIlfivnIO OlloqnlflU1JlIlL

ogpodl oq1 01111 JI1lIJ polO oq 01 pIlOOdXlIJO mpoq1lUJ11R l puIl lISIIloq IOIW

1IJIAOf 0IfL 1 I1lI1IOAOJ IIllupoofOJd JOj pD1llIlD l puIl IISJOlIIlD 1I1111ll0l OlIJOJIII puXlOIlIlLL9 ZosI

lI d 91lIS uoIoq IuJpoooold 111 1IjIIOOlIo OlOJ I qot1l OJ IlJOUoIl1quI OJIIpolOJd Puw IOIOIJd JO Inlluu 0111 q ptpWOO uaatq Ol WOOIl wwOAOO 011 q pIIltUftOOUO 1W11401d 011 SO OW 10U lnq tWOS UOJII1wqnl 11 oN

POflJlUOO I 1111111 UJUUJIoq p jO OlnCUJIIIP pOI UO IlII 01 pol flJn lUg IIlLUOJIIlwlDO1lI1 JO UO lIoq1 OllqlnalQ oq 01I I qol1l IRq

Gql JO uomlOdltP oq1 Ol JIlloQO 10U lUll tdpolAOtn08 l IfO qM Qltl W Iq1O OJAl DO pnUJWUIOO 0IfI 1I1UOWUJOAOf 01U tl

6i61 n IsnBnV

a8pnf MfJ7 atl l1fJlIS1UllUPVWZNV D 11I0WAilS S

pnll lU p p JQplOS UO lllB lSlAU lip SUO snIOUOO pUll sBlIPUJ BlI oBlJOj l1jl jO l1jBn l1jl UI

ttJl1jlJnj BlIlJlhUll JOj PU Q1jlln01jl A pI00QJ AIll11U lP

JAI lip UO SpU1llS lSlllJOlI llllJ 11lJQUQB lip jO SSOUlnjA lll l1jl S1l 1jonWSlllIlSJOJlX I lOOW II Kl PlnoA l JlAO IJOW XlpU IOpd llllSlI01jA JO JlwnSUOO

B I SJl1jlO BUOWll lSn Ol JOlllj AIllUOllllYU lll1jA BIIP OQp JOj S Sllq OU

SJ lJl1jllJoddns AIll lUlPJA I lUlSqV UlJJlllU lA SJ uomsod S lUQWUJlAOD l1j1

N01 TWWOWJLT VW V 3a31 07T

tpayton
Typewritten Text
120
Page 135: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

OJO rj II

OO AJlS lqlO sl51l UooJOO lpIlJll1Jl 0 lll0l lqlO 990Y JO as s I SIlM UO lJodro AlIlS 1llJL

0

99 1 1l1llM POlOO Ilqlllulnp uOlsnoH lR pIllPUlq SPlOllllO

iJsuiJdxg puv SJllS11V1S aU1V liJdO

sMOIIO SIl pIlU llldxl IlJIl SUO lIlOOIlIlllllpdoJddll l1lolpllJl S ql 01 pIllllOOUIl SlSUOOX l JlU 1l1Uoo PUIlIIlU WJll SIlXlluOlsnoH lql O SUO lJod lllM SlSUOOX l p01S q S PUIl IlIlS WOJ pIlll WO

spuvlSf U IA puv OJoQf 0I1iJnc lsvoJ Jifpvc Sll

OlpIlJl S ql JO lSUOOXl IfOOUlJ lIDP lql O OOO Z I JO slUnOOIl JIllA Illnpll lql If pIlllY lJ AUIl lJlld

AIUO UO plfoJd lql U JIlIlA un Il JO All Il ll llJOOO qIlUUIlAIlS Ilql O UOlPPIllql lpIlJl Sql U pIlllfOJd lSl IlJU IlwnloA lUroJOO 01 Ilql 01 UOlPPIl uI

OJl 0I1iJnc J IUVlW ItnOS oSll

01UOO1OO I 10 9E LL S 11lA pIlllfOJdpUll 11llA Illnpll lql UllMl lQ roUIlJIllJ P lql lUIlWllllllSJllpUn Ilql O lUnOWIl

lql JO JIlIlA IlSllq lql llIfsll lJU JllJV0

1 lUlwq Il11V XpuoodV SlUIlWSSIlSSIl JO P 18 90 1 snld lSUOOXl lsnoqlJIlM JO 019 EE I PZP OPZ O IlllOlIl

Aq pIlllllSJllpUn lJlM SIlSUOOXlIIl lOlS q Illnpll lqllnq 08L LIE SIlM pIllJodlJ

AUIlU5pO SIl lpllJl Sql JO lSUOOXl JlU IllUoo pUll IIlU WJll If OOUl1 lIDP l1l

spuvlS UoallA 1SVOJ Isvg

SMOUO SIl 9 pUll osoNIN qx3 U pIlU IlIdxl JlqlJn lJlM lSUOOXl JlU 1l1Uoo pUll IIlIfWJ ll pIlllfoJd oql

l5ullq5ulunOO Il lql WOJ 5Ifllns lJ lS1llJ U OOO P 1 lql 01 UOlPPIl uIolpllJl S ql JO pIlllfOJd UJnllJ O llllJ lql AIlUIlyu5 s plldW

01 qllnoull 10U S OOUIllIlA l11l1 OOO E llu u llwIlJ 1l1loAJlsnf PlnoM IlUllPlwnl0A lql ullql lJOW L Aq pIluIlp lnUlA l1 lpIlJl oonI OlJlnd IlPllulllql uI opllJJll ollJIlO X W lql llu pllJ5dn Aq SUJnllJ lAOJdw 01 pllu Ilql UO

pIlSllq S wS Wldo S ql0

61 Aq lwnloA pUll 01 Aq pIlIfI lP lnUlA lJ UIlJlAQopllU Il111l Ullq AUIlP01S q SIlq ullql Pllol JOO ll1lJ Jlqll q Il llY lJ lpllJl lUO lnqUIl U SlnU lAlJ pIlllfoJd UOlIl Y SSIlJlJ 5U lUnOOIl pUll HID pIlllfOJd

lql lwoou snooullUoos W JO uOllfoJd lql 5IflSnfpll Jll lllllql SMOqS llUlWqIl11V lls lnUlA lJ IIlp01S q SnSJlA pIlllfoJd S pU IllS O SsAIIlUIl UV

IiJMSUV

iSlnU lAlJ popoo Jopd ql M pIlJlldwoo Ilq lnUlA lJ pIlllfOJd

lql UIlMOq l5ullqlql O lqlllU pUll lnUlA lJ pIlllfOJd O uOlllln 11llql uo

lAllq lSUOOXl JlU 1l1Uoo pUll IIlU WJll U lSIllJ U UIl Ol lnUlA lJ O uOl npllJ Il

WOJ SlSoo pUllplAO O lUIlWlllllJl lql U lllullqS pU IlIlS P P ll lJllllqJl UO 1SmO

HIO 3H NI 03S0d SNOUS3nbXIS 3H mS1I3ASNV 03311DV

XION3ddV

T7T tc tlC ltll t I 1 Itt lt 1 tIt It l t I ntc olo ll

tpayton
Typewritten Text
121
Page 136: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W d ZZ

lllll lOllj IIll Ol IInp S pllJl S ll II SIlSuIldxII olbllO pUll lJod U IlSllIIJOII

IIll JOj UOSllIIJ AillUI JCI tU SllnSIIJ pIllOllfoJd pUlllllnlOll UllMlllq SIlOUIIJIIIl PilllllJIldO lUllOYlui S jO IlSnllOlq IIwnlOA OYJllJl U IlSllIIJOU OV IIll AqAI I08 pIlJnSllllW Kj lOUUllO IIsulldxII U lSllllJOU SItU 6 jO JllIIA IlSllq IIll JIIAO

IlSUllJOU Ull IZI IEE Aq JIIlilIIq Ol pIllOllfoJd IIJll SllSulldxII OiJllO PUlllJOdllSllIIJOU IIwnlOA pIllollfOJd Aq JOj

pIllUnOOOll 109 SIlsulldxII IIlSSIIA plSllQJOU U OOUIlJIIIl P IIll jO IIJlllS IIiJlllll JOj

SlUnOOOll uOlldwnsSll O WOUOOIl S I JllIIA IllUlOll IIll iUlJnp Ullll JIIli1 lUOOJIldS 91 S uOllllfOJd IIll IIUOlll SlSOO 1I000ud MIIJO pIlSllIIJOU JOj SntU Allp JIld

OL 1 9 S JUliA PlOIlfoJd IIllJOj llSulldxII IIlSSIlA lOlJ P OlU lJnq IIJniy lqllJlldwoo tU SllUOW XIs lSlll IIll iUlJnp VS pUll JUliA IIll jO SllUOW XIs lUY

IIll iUJnp VS6 V jO IIl11J AJ Up IliUJIIAll Ull WOJj sllnSllJ IlJniy SItU VSZ SliM

SL61 iUJnp OOJAJQS SllOlJIIWV IIllllpIlAOldllp SI SS A jO SSlllO IIll jO lSoo IIOJAlldAJllP IIillJIIAll IIIl IIldwuXII JOd iU SUIIJOU S SIIlSSIIA IlSIIll iUllllJIldO jO lSoo

AJllP IIll lUlllSUoo IIUWIIJ Ol pIllllfOJd S OO AJQS IIllllAl OlldllO IIll IIJ1IASIIJ W JIIU UlUoo OO AJIlS II11JIIAO Ol SJUKj

SIIJ W JIIU1llUoo pllJl IIilllUOOJIld IIllOl UOllUI J U SllSllIIJOIlp JO SIlS1llJOII IIpllJl1 01ll JOj d ISUOllIlIIIJ JW J U lllUoo IIIl VV OSZ Aq IIUJllp Ol PllOllfOJd IIJIl

SIlSUlldxII IlSSlA lOIlJIP IIpllJllIllJIIAO IIll IIJIM SPJOM JIIllO UJ lUlllSUoo SU llWIIJ

OOJAJQS IIllll AlJOlldllO IIll UIIIM AIJIllnO lJlld IIwnIOA OiJllO IIpllJlII SIlSlllJOU

IllM llSulldxII jO lSll1lJ01I IIl11UO lJodOJd AJJ llj 11 lolldxII OllOllJJoo S l SIlpllJlSnOJllA IIll Ol SIlSuIldxII IIlSSIlA illui SSIl U pIlq JOSllJd IInb ullll UOllllOOlIll

IIll qnOJtU OV jO IIpllJl O lUllllV Ilnos IIll U lSlllJOU IIwnlOA pIllllfOJdIIll WOJj SIISlJll llSulldxII IlSSlA lllJ P IllUOlllPPIl IIll jO UO lJod Illllulllsqns Il

pIllOU UO SS WW IIll jO JllpJO IIIlSV SL61 OE JKjwIIAoN iu puII JllIIA IllnlOllIIll U IlSUlldxII jO I A I IIllJIIAO v9 JO ZL6 S E Aq pIlSllIIJOU llSulldxII I SSIl

JaMWV

iOv AluO Aq lSllllJOU Ol pIllllfoJd S OYJllJljO IIwnloA IIll I1M 09 Aq IlSllllJOII Ol pIllllfoJd IIpllJl 00 1I OlJllnd O lUllIWIlnos IIll U SIlSuIldxII oiJllo pUll lJod pUll IIlSSIIA lOIlJ P IlJll AIA

uOl1 anB

S S vl jO 11 1llP 11 SMOIS I A I pIllOllfoJd IIll Ol pIlJlldwoo UIIIM IO IM

EEO UE I ZS 6EO Z S S 91v E Ol 11 O D 11lOlJOlS 1 IIll U pIllJodllJIlSUlldxII JIIU1llUoo pUll IllU WJIIl IIll llS llJ Ol S lUllwlsnfpll S ll jO lOIlll III

EEO LLE I v X ELO 090 E

ELO Q90 E ZOZ 16 LZ I 9 E

UOlllllnllllO illMOIIOj IIll jO lonpoJd Il S IIJniy SItUEEO LLE I SIlOnpoJd uolsnoH III pIlWJOjlllld 109

oiJtlO IIpllJllSlllSllA SIliJlllo IlSnolllJllM illlIlU WJII JIIlJll llSulldxII OOJAJIISIIllOl v jO JOlOIlj UOllllOOlIll IIpllJ lSll lSIIA IIll iUJAlddll AS IIAOqll pIllOU

JOlOllj 99 vE IIllJIld OO AJIIS IIll Ol pIllllOOlIll SliM LZ I 9 E pUll 1 vE OIOl pIllunOWIl UOlSnoH III llSulldxII JIIU IllUoo pUll IIlU WJIIl IlllOl III

LZS I vl L IIpllJlSllOlSIIA IIll JOj V pUll LZS 1 LZv IIpllJl JlnD IIll JOj LZ IIJIIM

ItTnTClC JTATTATn 3tATrlTI W 1 IIn ll 771

tpayton
Typewritten Text
122
Page 137: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

nllI

SImuro PUlI1 11lS S SAlllUll uOlln SlpllJ1 OM1 1111 UllM1 1q AlIllnOO1UlW1S lAU llll ljjJllq01 lpllW SllM llllW lSl Ull u01snoH pUll SUlllPO MlN lpllJ1

JlnO lq1 pUll lII AUOSOIl pUll qIlUUIlAIlS U01SlJJllq lplll1 O lUIlIlY q1nos

lq1 011UlW1S lAU llU llIlJlldls 01 pll nlm SIlM UOlll001l1l Ull JU S llllpnq 6L61S PUIll IllS Ollllllp llu Aplpun lq1 U UO lIlOO oypoos Aq plY lUlP lOU lllM

IllJIl llu lllJOOO J no pUll O lUIl lV q1nos lq1 U SlSSIl lUlllO pUll A1lOllJ lllL8Lf JO lSpll JIllA pl1 J fOJd lq1 U 00 06L

01 JIllA lSllq lq1 U 9ft 9 WOJJ SlUlllO pUll Sl llOIlJ U lSIllJOU llIlUPJOU lq1 JO l nSll 11 S EO 1 JO In IlA llSSIl U lSlllJoU IIIlJlAO lq1lOJ UOSIlll

lq1 lWn OA OlJIlJ1 U q1Molll OP lq1 JO 1qlllU lJqIlUOSIlll S qO qM P

Aq plSIl llOU A UO JOOlS jjUIIOl A lWIlU dnolll1lSSIl lq1 JO UO llod 1l lUIl1sqnslSOW lq1 fOl Aq plSIl llOU 1UlW1S lAU lUlwd nl3 pUll AllOOOld 11101 ll qA

EOI

8Lfv

a3uDIJa3D uaJJaJ

000 vI6

000 06LOOO vl I

OIrOE p 0 6L luo pa oJJ

9 6f6

9f 91OOf vLL

IlLoE ll 0 LL l lliUO 8m

3 fl d UIO

UUJfl II ud100IS gUIlo

IUiJUJdJnblpuV tflJadOJJ JiII10 u

IUilU11SililU Ii1N ilpVJL JJUV W 1mos

SMOIIOJ llllA pl1 J foldpUll 1lP01S q lq1 U In IlA 1UlW1S lAU lllllllAIl J lq1 q1 M llq1 lll01 dnOlll1lSSIlS q1 JO UMOpJ llllq Y SlUlllO pUll Sl llOIlJ pUll Sl Un llMod pUll S SSIlqo llU 1l1

uro JOOlS lluIIol JO A pllwpd lS SUro slunoooll 1Ulwd nlrlpUll AllOOOldJilMSUV

ilPlll1 rom Olllnd O lUIlIlY q1nos lq1 U Wl1 lSllq lllll 11 SIl lUlWd nlrlpUll AllooOld llq10 U lSIlllOU lUJlOO EOl pl1 J fOld 11 lllq1 S AqA

E UOJlsilnO

A UO

JO lSUOOXl OlllllO pUll llod U lSIlllOU UIl SlUlS lldll 99toof Zl lff

8 Of 01 lUnowll SlSUOOX l pl1 J fold IlUOlPPIl JO Jull llq lq1 llllA

IInJ lq1lOO qllUUIlAIlS 1Il llUllllOOO JO lJ lJl llnuull lq1 01 l qIl1nqpllll lq UIlO

Pf9 Z8 OO6 Z8P 99toof lSUOOXl plSIl llOU pl1 J fOld lq1 JO 1I1l1SOWJIl

snq1 006 Z8P 01 1unowIl Slsro JO Slpojj l1IlO lIlI W S lOJ SlSUOOX l pl1 J foldlnO SlSUOOX l OlllllO PUllllod JO Pf9 Z8 lpnpu 8L61 Of llQW lAON llu pul

llllA lq1lOJ lplll1 olullllY q1nos lq1 U Sl nSllllu llllOOO Ilnpll S PUIll IllS

8L61 l11l U qlluullAIlS llU Alls JO

lJ lJllq1 SllllllSUOW lP AJJlppl1 J fold PUIl lln10Il qlOq SllllloP lSUOOXl lq1 JO

uosplldwro Y qllUUIlAIlS JO llod lq1111 llUllllOOO JUlPOOX lllllA IInJ 11 lpnpuSlSUOOX l OlllllO pUll llOll pl1 J fold lq1 lSlll1Uro Ag UOllllOOO JO sq1UOW lllq1

A UO pl1U lSlld ll UOlIlOO qllUUIlAIlS lq1lOJ SlSUOOX l Ilnpll lq1 l nSll 11 sy

8L61 PZ lsnllnyll lllOOO qIlUUIlAllS JO llOll lq11ll SIIIlO lSSlA lJJ P mUlWwro PUll1 llS

71 f I I 1 I f f n TN T O SOO

tpayton
Typewritten Text
123
Page 138: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

WIll

lPllJl lUO lnq lfS U OYJllJl JO lWnIOA lIUJSlllJllQP 11

ll dslp SlpllJllJ1l JOJ llll dllO lIUPlJOM UJ lS1lQJOU fOJd 11 lJlql SfAIIAuOllsan

JlllA lQlIpnq lql JO JllJUnb qlv pUll PJE lql Ol pasoddo Sll JlllA pllOQfoJd lqlJO JllJllnb PJE pUll puZ Qql UJ Jnooo ffiA SlJnllPuQdx I J1ll dllO plSll lJOUJ Qql JOAlIJofllW QlIl SnlU 6L61 I AllW SQOUQWWOO JlllA pllOQfoJd lqllllql pIlou qPlnoqs II QPllJl OHUllllV IIlnOS Qql Aq UJoq qPJnoqs lUQWlSlAUJ MQU qons JOuO lJod lllllql UOS1lQJ Ol SPUlllS l 6L6I lJUJnp oofd OlJQnd U plJJJ1lWJllQ SliM

Z lUQwqollnv UOIPW v IS JO Slml puQdXQ Illl dllO IlluoHlPPll plllld OHUlllllqllOllJ Qql JO MQIA uI 61O vOIS JOJ lloXQ lUQWlSlAUJ lUQwd nb pUll AlJQdOJdQql U lSlllJOUJ lql JO 1J1l JOJ SlUnOOOll UOHllUllldxQ iu oiaJoJ Qql JO nv

QPllJl OHUllllV qlnos QqlOl OV X9I EvS 9OV LIS JO uOPlloollllllluoHlpPll Ull UllQW UM SlH UOllJ 00 1I OlJQs PU1l1 11QS qinoJql lAOW lsnw QWnlOA Qql JO lfS qOllM U lpllJl O lUllllVqlnos lql U lSGJoUJ OV QIU lUQWlSQAUJ lQU S OO lI OlJQnd JO lUQWUlISSll

QqllOQjjlll1A QSllQJOUJ Ol pllOQfOJd SJQqlo pUll QUJIOQP Ol plOQfoJd aJll SQpllJlQWOS QJlqM SllIullqO QWnlOA UJ lJ qs QIU oofd OlJQ UJ plllnS lJ lUQWlSQAUJllU JO 9I EvS JllQA QSllq Qql uI OOlI OlJQnd UJ pIlllool SlQSS1l s PU1l1 11QS JO

uO lJod Qql Ol UJnl MOU INt lUlWlS lAU pslllJOU Qql 8u UJ1lldxQ U SllSSlll lSSlA

snOQUllnQOSJW pUll SQHmOllJ OOlS iUHlOJ JO lOQjjQ QIIl plSsnoS fp QAllq QA

QpllJl oHUllIlV qlnos

Qql Ol plUi SS1l q AnllO8ol PlnoM OV X LvE ELS 6EE 6ZS IlluoHlPPll Ull

JOlOllJ UOHllOOnll Qql UJ lSllQJOUJ iUJPuodSIJJOO 11 lSnllO PlnoM QWnlOA pllOQfOJdoPUllllV qlnos U qlAoJ OV Qql lllql lIUJwnssy SOHllJ QIlW JoUJ1lluoolql JO S Sllq lql uo SQpllJl Qql Ol pI 1lOOlfS QJOMSlQSS1l QSQIU QJOqSll slJud aJuds

IlSSQA pUll SJlSSlAJO QiUllqOXQ pUll QJ1ls JO 8801 JO UJ1l8 SlUQWQAOJdw PIOqOSllQIIlSSQA JO pllS fSUOO AJollQlllO lUQwd nb pUll AlJQdOJd JlllA OSllq lql UJ plpnloUJ

lUOWlSlAU lQU JO LvE ELS QldWllXQ JOil QPllJl OHUllIlV qlnos Qql Ol polIJllqOAIllllUOHJodOJd q PlnoM qO qM QPllJl QIIl UJ qlAOJ8 QWnlOA pllOQfOJd Qql

Aq JOJ pllunoooll qUlIO lUQWlSlAUJ IlluoHlPpll Qql JO vL 9vS 16 JO OS1laJOUJUll 9Et 9IS ooo9IE V9LO I SfSlpllJl oHUllIlV qlnos lql U lUQWlSlAUJ

lUlwdJnb pUll A OJd U lSlllJOUJ pllsnfpll lql JllqO lIu ollaJoJ Qql WOJiI

ES

16SI

alulJlfa81J uauaJ

000 0111

OOO 91E000 11 1 1

OfHf 0 6i l rUOlDa OJJ

9ES 6E6

9El S91OOE ILLS

BiQf ll 0 ii 1 Z1ol8 H

1I d l81olSQII1lJ SQIlffillldlfOO1S 8umOll

luawdnb8 pu IJadOJJ JalIO UIluawlslMuI IaN ap JL Jllu IW Imos palsn py

SMOnOJ Sll pllaJ Ol plSAOJ q PJnOM lnoqlllJllqo QqlSfSllq pllsnfpll Ull uO suol1lOO1 JltIO lql Ol 08 pUll SUOH1lOO1 OHUllllV qlnos

Qql OllUQWlSlAUJ lUllJO pUll AlffiOllJ lql JO OZ QiJ1lqo Ol SfSl8UllJ J1llS1100 OMl

Qql UQQMllq AlIAJlOll fOJd Qql JO MQIA UJ UOpllJlldQS Qlll JdoJddllaJow lllllql

nT Twwn IW1TTf W T fln ll T

tpayton
Typewritten Text
124
Page 139: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

JpVJL mUV w Imos fJuPnpX SJpDJ L llV U

ofJJvJ fo JwnOA puv sJsu Jdx ofJJvJ puv lJOJ

JlpUmlJ lq plp AOJdS SlSu ldXl JO dnoiii S ql JO lllullq llllllUlJld pUll dlllJ V APA l SlJ

000 88 pUll UL L9 Ol pllUnowll JlllA pll lfOJd pUll POJld lSllq lql USlSU ldXl OllJllpUll lJod lpllJl lUllJlV qlnoS lql ullql JlqlO SlpllJl 1111 UI

lUlllSUro plU llWlJ d qsuo l1lpJ lUlJld lql U SlJ w 1lSSlA JO

Xlw lqlllUwnssll L6 X 98 SSl1 001 X 6 9 8111noo Ol pl Xl Ulql

Ull luIlP IIllJlAO lq1 uollfoJd 98 Ol Jllnpll Z6 WOJJ plu IlP SlpllJl

Xls 1111 JOJ sPllol IlllOl Ol SlpllJl lAY lql JOJ SPllOI JO d qsUO lllllJ lUlJld lql

AlpU AJOlS q JO L6 Ol plU IlP SlpllJllIll JOJ lSuldX lIlSSM 11ll0l lSJi

SJOPllJ OMl Aq plU llldXl S q qM 8 Aq lUIlP Ol pll lfoJd lJll lpllJl ronlOlJlnd lUllJlV qlnos lql ullql Jlqlo SlpllJl lAY lql JOJ SlSu ldXl IlSS lA

JJMSUV

i 6Z Aq lSlllJ lP Ol pll lfOJd S YJllJl JO

lWnIOA lql lJqM I AIUO Aq lSlllJ lP Ol pll lfOJd lpllJl ronl OlJlnd lUllJlVqlnos Ullql JlqlO SlpllJl U SlSU ldXl OllJlllJod pUll 1lSS lA llJ P lJll Aq1

UO ISJno

PUll lllS Aq pll1lW lSl AlIllUllJO

Illl dllllllplJOM lql U UlJ llJ P IIllWS AIUO llY lJ uOlllln llllllql JO SllnSlJ

lQL POJld lSllq lql U pllSlX l lllql lSUldX l lUllJnSU JO d qsUO lllllJ lWllS

lqlllU zIln Aq OllJ lq lUlWq llllV U JlllA pll lfOJd lql JOJ Illl dlllluPlJOMll1llUlllOl plldW lll1l IlSUnO llUJll lH JO lSlnOOJ lqllll JlA lMOq lAllq l1

lA SSl Xl lOU S pUll 1llS Aq pll lfOJd Illl dllllUPlJOMJO lUnOWll lql lnp SAllp 9 JO SSl Xl U Ol lnp SAllp O JlAO WOJJ lJlqMAUll

SlllUllJ l1Y llqllA J ullnf UllS JnO JO o AIllllWlXOJddll JlllA lUlJJn lql

JO POJld qlJnoJ lql JO PUl lqlllll1lqllUllX l lql 01 SlSu ldXl JO lUlwAlld pUllSlJqllA J JO UO llllro UOOMllq lS Xllqll W lllql lUJllllllAUll UOOMl Al Pll

SSlU Snq lnO AJJllOl spunJ lUlpYJnS lpOJd Ol S Illl dlllluPlJOM AlIlllU lSstl

lJqllJllAll lOU SllM lUllJnSU JOJ lUlWlSnfpll JllJll SlSU ldXl lllIlAOA llY lJ Ol

AJllSS U J llllp lql JlA lMOH II JlpJO IllJlU lDJO SlUlW lJnOOJ lql OllUllnS

Jnd Illl dllllllplJOM pll lfOJd lU WJll lp Ol plJJ lJlJd lAllq PlnOM PUll lllS

lJqllIddll Sll pUllsnoql plJpunq JO pUllsnoql UlllS lqllq lql Ol JlllA lSllq lql U

lpllJl q lll U SlUnOWllllll dlllluPlJOM lqlllU SllJ UO plSllq AldW S SllM llllW lSl

lQL SlpllJl SnOJllA lql Ol UO lllOlIll lql SMOqS qqM LI lU U pll1l PU SllM

ll1lUJ lSl UO l1ll0U lql SllnSlJ llU lllJldO pll lfOJd S PUll 1llS JO AI llnplq

U pllOU AllW sy lSl811ns Ol swoos UO llllJ lSlAUI JO JlpJO lql Sll lWnIOA

YJllJl U SlllUllq Ol plllll lJ AJllJ P lOU lJll SlUlW lJ nooJ Illl dlllluPlJO1JJMSUV

jd II

L J t9 910 61 LEtSl PBlYI08JBJO wnoA

LLl lLL vS ooo SS UL L9 uodx308JBpUB lad

a3uolJ iJJUV lVA oaA oaA

uaJ J papafo J OJI OlIH

C7T 3SV3 NI 3LV 1V 3N3D LN31I3d 3AId G3S0dOlld

tpayton
Typewritten Text
125
Page 140: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

ild ZZ

J1JOA JlnlOVnIRq 01U8llOUOJ en WOl QUJI O1VJ8doI en RIOOUI IntUJDlOiIw YJ U0111101JllSlIOOl I

000 111OOO Z9Z

000 111000z9Z

0lE S91898 SEZ

0lE S91898 SEZ

olbuIi lJOdlassaA

saruadxgBuI IUadO lassaA

OOO I66S OOO 06O IS

pa sn py palJodaH syJ a papa OJJ

181 IZO IS 181 IW IS

pa sn py palJodaH syJ a 1 310 SI8

anuaAall

S1UIJumn PV IJsuadxg Ul 1JIJJ PuU011 JliSSOPIJH IJnuIJIIJH mf SIJP JL SPU lSf

UJJ1A 1S 0J 1SOg JOf S1lnSIJH BU11 JadOpa13a OJJ pU l nzJV fO UOSIJ dlUoJ

llnpaqS 1l1l10110j lllll pll llllJ lJll slUlUQsnfpll llU OlllJOj ltUlS1llJ 1I llllJ S 11 pUll l1l1lP lWnl0A 01 11 UO plS1lq SUOllll xdX l lIll

lU111 S SltU lJnlly 111jJOlS q lql ullql JlI OI E lnoqll S UOjllfOJd lnUlA lJ

U1llOO1lll llnSlJ lql 000 96 lql Aq lnUlA lJ plllfoJd 1lll lSnfpll JllN lWOOU

snooulll1ls W jO 000 96 plpnl 1I lnUlA lJ foJd lqllllql palou lq Plnoqs II

17 lUlWq llllVllS qllqllZJl3 III SlUlWSS lSSll ApnoqpUll lllllUUOll11nlll jO proW lql JOj SUOllllPdX l qlll1l 1 U Sl q qlS61

jO Pllol Jld lSOO lllllJlAll Ull U SllnslJ 000 6S1 jO uO llfoJd lql oll11nbllSOO lUlWSS lSSll Ull llllsn pallllSJlpUn A111I lUlIlsqns Sl ooo S jO lp1IJlsPUllIsI IIllJ AlS1l lS1l3 lql Ol pallloo1111 lSOO lUlWSS lSS1I 1IjJOlSlq lq

suolllllxdX l ql 1 l1l111 Sl q ql9E9 lnoqll lq

Plnol PIIOIJld lSOOlSnOq lJllls n lql S lpllJl IA 3lllOlllujAoWsPlIol OS AlllllWJXoJddll lllqlllllwnssy palulSlJd Al11ujlljJo lSOO lql JlAO

lS1IlJ 1I 000 170 11 SlUlSlJd lJ SItU llqlluOSIllJ Sl 0006S1 jO uOllfoJd

lql Ol Il1nbllUnOWll UII uolllloo111l lSOO 1ljJOlSjq lql llUllllnll1AllJ UI

17 lUlwq lInviIs lpllJl PUlllsI u llJ A lSII

lS1I3 lql OllSOO lSnoqlJ1l1 jO uOlllloo1111 llll nPlJ Ol SIIIl lIdw llumnSlJltU lSIIlqllOu Sl s Slsnoq lJIII lJowll1lS pUll Qllq1lZ 13 lql qllnoJqlpllpulIq lJll SP1lo1 Ullnf UllS lllql pawnSSIl AlllJJOOU uOllllln1I lSOO

111JOlSjq ltU pallllSJlpUn AUIl11ulIlsqns S lSOO lSnoqlJ1I1 111jJOlSjq lq 1

SlSSIIuo UJnllJ 111jJOlSlq llljO lUlW ll1llSJlAO UII Ol palnqjJluoo SJOpllj JOf1lw Oll

lllql pal11lA lJlplIJl spulIlsI IIllJ AlS1l0 lS1I3 lql JOj AJOlS q lql jO S SAII1UVJaMSUV

llu u1lp lplIJl spulIlsI ujllJ AlslI lS1l3 lql U UJnllJ jO ll1lJ lql S AqM9 uOl1san

lwnl0A YJIIJl U SlllulIq Ol uO lJodoJdllJ P lSOWll U lllulIqAl1JQlljJIIA jO lQJ8QP q8jq 11 lAlIq q qlSlSOO 1I111Pu1Iq

II SQ8ulIqlSnllOlq lwnloA YJ1IJl pallXlfoJd II UOllnpaJ lql Sl1UIIJlId AlmlSlSu ldXI 08J1lpUll lJod pallfoJd II uo pnpaJ lql paPdXQ q lq8 w sy

1IJ00SSIWW01 WlII W f CT1 Q7T

tpayton
Typewritten Text
126
Page 141: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W j II

jlll q p W IU WlSnfpB D 8SQS l 8ullJ I UJ uU Pllsnfpe 01 gltl lnqlne SQSu l g D V u1 U lUW lS3

UI X Illn 8 q M l Ul U 18 901 JO 1800 VSANJO u0111 lOlre JO l WnelSJ pun JJCO oJ pUB peJ 111 OlIQe 8Jllqo IJ oJd Su x noq U8Nl 0809 E 1 IllUO l ppe J lJ u01 SuxlxJU BlUOOpUll IBU lWn Jll rllnpn oo 01 t

UO llllYlC Xl llqllUOSlllJ II S

l UllWJOJIOO llU uIYlp S ql SlSll lJOU lSOO O WOUOYl pUll lUIYlP lWnIO lql JOMl UJ 000 1171 JO SSOI Xlll lJd pll YlfOJd pllsnfpll Ull ql M plJlldWOO 9U ZE

JO SSOI XlllllJd II SMOqS lUlW lllllS SSO1 pUll lYOJd IllOPOlS q pllsnfpll lql

OOO IV OOO VEl 9U lE On 6ll aWOOUj llJdOOO SEj l OOO vlE 1 L06 ESO j j90 l6L laN a u lx3 1I10l

89VS 89v S UO lOnPIJaqlO000 89 000 89 L99 V8 L99 V8 UOPjJowy jUO IBX Jdlj

VW 9 VW 9 la BaA M IOBUjOOO 6SI OOO lSl OOO SV 9LS m D Y

000 806 OOO vOO j 8vL n8 9lE US 30A IaN1000 96 Svl Ll Svt L II awoouI noouBII1l

OOOtS OOO ES ELI 8l ELI 8l a8BJalOJlIOOO 8LS OOO 8LS V9 OOS O t09 JaU 1I1uo IBU wJal

U I TI 111 IU lIo 1 I

tpayton
Typewritten Text
127
Page 142: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

JV

f

ili

Nj

fiU

iiH

Jiiill

tii

rrJr

rIi

Qif

iIi

IiI

i1luJ

It

III

II

It

Ir

II

tHQI

JJC

Ioo

c

i8i

Iif

I11

I11

I3

Itlf

elS

Ioo

ills

so

N

I Ib

II

l1

hkItl

1ii

gl1l

1lItl

I1

II

rF

1tl

Itlu

Vt

000

I82

eRoj

ill

ill00

Ocl

ll

clSol

t

t i II

If

yr

i5

88

li

Itrrllf

CC

lIJA

TlA

TI

IrA

ilI

nl

lIAI

1111

11

i 1 a

m Z

It r

OT

mharris
Typewritten Text
128
Page 143: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

c

g

cc

II

II

tN

l

lll

eg l

i3p

inll

II

ag

S0

a

Wo

o

5e

la

38

la

li

iil6

S

g

itn

I s8

00

Xl

St

l

av

o8

0 l

0Vt

otz

8ro

Ww 8

C5s

nI1

1r

111

IA

IJ

nlCr

Jr

II

Wj

cc

mharris
Typewritten Text
mharris
Typewritten Text
129
Page 144: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

vrtt

ll

l

tH

ut

W11

1t

ss

id80

tii

i

tl

lW

l0

ia

cl

Vtig

0W

gl

li

ii

iilH

Ii

ill

i

alf

am

lfiai

ljg

wa

ooll

ab

Jd

xl

t

sg

Xi

f

i 1 r1 te

tft

v

ic 1X

I i a

iiti 9

9JSl

oOJV

SSS

oo

0S

Itst

0

Jl

t

o

lt

o

VItitl

o

a 1

tG

J

VlV

lS

o

li

mharris
Typewritten Text
130
Page 145: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

1 18 901

P lvISJ punlunoUlV

000 6 1

JV A

P J OJJ

981 Z

JV A lVJ J01S H lOd

p Jod H lllJU 13JO

sluawssaSsv

qloq ZI3

W ZZ

SL61 SlJnp UOl l qUsslSSB JxI 8 0lSJeq IlSeuuOl VSAN lSWl ll 0Ml U AOI 001

Pl1UIl litlM S U J1llA Ilmpll Ill U 9 0Prol Jld lSOO 11 Ul JKllln spool IlplUl plOt q JKlPP 981 Z 0 SlUl

SUO lwxIo ol 1l1t JO pool Joo lSOO 11ld 11l1l

ItOjllq lIll1lre1sqns pool JKf 6 IUO O 1800 Snoq eM 1l lOnpoJd Pf1 OM spool IlpllJl 111 O Zq JKlPP 06vlS luql llON

019 fflZOO 1Z809 601

P lvlsJapunlunolUV

001 8 1001 6Z000 6ZI

061 1Z

86OZ6f 61

I OL01OW11 1Iqloq zI3

JV A VJIJOISIH JOl

p IJod H lllJU13uOsuadxasnolaJvAI

PVJL spuvlsIUIBJIA ISVOJ ISV

JV AP J oJJ

SI nSiJH 2U IIJJiJdO JlJiJA lJnJJV

U IUiJUiiJllJlSJiJpun fO PlJdUi 2UMOIJS

SIUiJUiSSiJSSV pulJ iJSUiJdXil iJsnOlJiJJlJ M SYl

PiJPiJ OJJ pulJ lJnpv fO UOS JlJdUiO

to LN3WHVllV

TrT f f f C f f A I l OfO f

tpayton
Typewritten Text
131
Page 146: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W dZZ W

tUDIiJJJaS luDlsJsSV

ONDI10d HdilSOf S

U01SS1WWOlql glUON NOILVW ijOilNI AijV NilW illddnS

pIlnulluooslP sl iUJpIllOoJd slql liuIJoooV UOlJ lql lUlWWOO JOj llUnlJoddoJlqlJnj lAli mM qllqM siUlpllllOJd llllJlldlS ul plSodoJd lt

PlnoM SUOlldwllCl lYllOOS Jlqlll ij jfulpllllOJd JlllnlllJoo SqlWOJj lnSUl PlnoM SlllsodoJd Ull l1lql pIlllldllllUll lOU SllM II

uolsswwo lql q pIlZ11lU1llJUJlq MOU lJ1l PU1l pIlAl J ullq lA1lq SlUlWWO 9161

PV lJulddlqS lqljo E UOllllS Jlpun SUOlldwlx l pIlsodoJd uo

SlUllUWOO lJullSlnb lJ LE SI ilij pIld vv 6L61 SZ qlJ1lWpIlqslqnd AlJnbUJ jO llHOU q pIllnmSUJ S1lM iUJ Jd slq AijVWWnS

iUlplllOOJd jO llu1lnullUOOslO NOIL V

6L61 I JaqUlaldas

EE61 LV ONlddlHS lVLSVOOll UNI 3HL GNV

9161 LV ONlddlHS 3HL m SNOISIAOlld WOlld SNOlldW3X3

SI 6L oN L3OO

AIlI3 LdVHij iI 9v

NOISSIWWOJ 3WIll IW30tH

Page 147: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

ITI u

AJtJlaJJas lUtJ1S SSVDNDI10d Hd3S0f S

UO SS WWOlq1 JO JlpJO AHplnU lUOOS P S liuplllOJd S qll1lq1 mHI30M0 M3H1MOd SI 11

pUll plSS WS P S Y S sYl AJlS OYPlld U llJ1lllS JO JlpJO

AJ01llJllIOlO JOJ uOllld lq1 11l4l 03M30 M0 SI 11 3MOd3 M3H1lO pnflJd 1noq1 M

plSS WS P ljJJM UOllOO S U llJ1lllS II L oN 1Ulw llJliy UO liUlOll JO1XllUOO IllJnplOOJd lq1 U plAIOS lJ AI1UlPYJ lpUll AJllllp lSOWljPlnOM UOllOO

1Ull1SU lq1 Aq plS llJ SlnSS lq1 lSnllOlH S Sllq pl1 pOOXlUll uo UO SS WWO

lql lJOJlq II L oN 1UlW llJliy liupq 01 UlA li Ullq lAllq SUOlOnJ1SUIlA SSlOX l S 1Ulw llJliy Md lq1 Aq plAoldw lpopOO lO lOU AllP 09 lqll1lq1punoJli IllUO l PPll lq1 UO pUll UO l lOO 1Ull1SU lq1 U pl1ll1S SUOSlllJ lq1 JOJ 1UlW

PUlWll plsodOJd lq1 JO IllAOJddllS P liuPIllS lSllOJd II pl1Y OSlll U llJ1lllS 6L6InAlnf uO 6L6I I lunf uo IllAOJddll JOJ pl1Y SliMII L ON 1Ulw llJliy

llsunOJ liUplllH JO nlllJnH

S UO SS WWOlq1 pUll Md Aq plll wqns lJlM UOllOO S U llJ1lllS 01 sl ldlMJlpJllO liu qslqnd lq1 Aq

plqS lqll1Sl SPAl1 Jl lJlllpllOX l10U SOOp uOlonp lJ lq1 UlqM UlA l pUll llllJ 1UlPUOOlpU Ull Sll plqS lqnd liu lj AplllJlll S uOls lnb U llllJ lq1 UlqM UlA l SllllJ

IllpoWJl1U U suo pnplJ 11fJ JOJ lOlou lOUllApll SAllp 09 lA li lsnw SlU I JljW lW

11lq1 liU AJ oOOS Aq lSnlllo UOlOll 1UlPUOO lPU S lOUlJ lJuoo lq1 AJ poW PlnoMII L oN 1Ulw llJliy 1UlWPU lWllS q1 lA lUlllsqns UllqlJlql1lJ lllJnplO

oJd Sll 1UlWPU lWll lq1 liU AJ SSllP Aq 1Ulw llJllll lOUlJ lJuoo o ullliJO J lq101 1UlWPU lWll Ull pl1dopll AIPlllAU Md lOUlJ lJuo punoq1SlM oYPlldlq1 JO SlU I JljW lW lq11llq1 llnJ 01 UO SS WWOlq1 SlSlnOOJ Y S SlO AJlS

OYPlld U llJ1lllS 6L6I 6I Alnf pl1Y JlpJO AJ01llJllIOlO JOJ UO l lld AH

6L61 r JiJqumdiJS

IYSSIWSIO dO M30M0

II L ON N3 3311DY 30N3113i1NOONflOlUS3MOIillovd 3M S3flb3M 1I301l0 AlImVlIVI030

9L 6L ON 3JOOO

NOISSIWWOHWUHIVW lVI3GffiI

Page 148: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

11 1 ZZ vEl

tfJ1JlaJJas lU1J1S1ssyONDIlOd Hd3S0f S

I

UO SS WWOQlIl a

St 8 QllrellOJnS JQluna Ulllll JQlIlllJ St L X St8 QllJllllOJnSJQluna QpnjOUl PjnOllS tE llUlPlrl jO ma llUlPJllllQJ Q qlll QlIl 9 Qlllld tV

pJllpUlllS QjqllOiddllpWJ PjnollS prepUlllS pQq J08QJd JJolnlllls QSlIJlId QlIl EJ QUi s Qlllld tV

SUOllllOmpoW llu MOIIOj QlIl lIl M UO 81OQP llllllldopll Ol UlWJQlQP SlIlI UO 88JUlWOQlIl llUl Jd 8l1ll Ul JOOIDO lUQWQjllQS

QlIl jO UO 81OQP 6L6 vt lsnllnv QlIl jO MQ AQJ uOOn llllll UQAJll S oolloN

6L61 JaqUlaldas

3UON

NI S3Nn lVUNilOmld

0 ONllIflJV iInNVW NoUIIO

ISLS ON i1I lVWllOlNI

NOISSIWWO3WILHIVW 3a3d

Page 149: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

SEI nfd

llJ1l Ala JO a 8p1l WOOJ supOt Uft tJM I Mf3J 01 uoftwUKQ gql SSQlunJWJ QQ mM UO spgJ fJIIl tQE IOE tOSII d 9t unpgooJd pUtt 1lJJd JO Inll S UO WW 1 1 JO 3Jnpao ud rewJOJUf 1 OJ UgsUOO Bll8q JJed 11108 I

Joo C6 JO llllJ O SSllIlql plSS lSSll lJlM qUlllllllS SSlIU lllSllll Wdn vs as IIPIll lqS lJd l UlJ lJUOlqS lJd lllp lWV qlnos JO lSllO

lSlM JlnD pUll lllUllIlV OllUllnSJnd plSS lSSll lJlM SlSJllq llqS lJd UlllO9L6 a JljOl lO pllllp lJlM SU P1l1 JO sma qlog lllJ l qnl 66 SU Ad

pUll spunod o t SU qS lM Sl Ufl SIf SUlPUO SllIlJ l lAY pUlllllJ l qnl 6SU Adnoo pUll spunod O 9 17 illfqS lM qUlll llllS SSl lflllS SllIlJ l EllJql JO pllS SUOO f ON SU Plli JO ma lUlwd qs PUOOlS lllllllJ l qnl 17SU Adnoo pUll spunod 0017 SU qS lM Sl Ufl illf sulpuO SllIlJ l 8 lqS l pUlllllJ l qnfL8 SU Adnoo pUll spunod OO17t SU qS lM qUllll lllS SSlllf lllS

sal1lJl 8 lqS l jO pllSjSUOO f ON SU Plli jO ma lUlwd qs lSJY lqlSl Ufl

SU SUlpUO SllIlJ pUll SSl lflllS qUllll lllS SllIlJ Sll WD Aq PlQp lSlP lJlM SlUlwd qs lql WD Aq plp oJd lJlM ql qM SU Plli JO sma lql

uo SUJlloodll SUO ldpls lp lql UO plpJ id SlUlwd qslllfqns lql Slfl1lJ uIll q OSjllJlld 1lA Ol Il UllAIASUUld ll qd lPlllqd WOJJ pllJodSUllJl lJlM

qlJqM Sl Un SU SUlPUOO pUll qUill lllS Sll 9L6 a JljOl lO pll1lP f ON pUllf ON SU Plli JO sma SlUn lIlJD Ill lUlpnJd UO plqp lSlp SlUlwd qs OMl uo

id SlUn Ill lUlPnJd WOJJ UO lIlJlldlJ SlllSlJ lllf lUlJoo 9 XJs sn d 6Slllfllfl lUlwd nblAJOl1lJoqlll pUll WJllJ JO uOllnqplS p pUll lJnpllJnullw

lql U plilllilu l AUlldwoo II WD AUlldwoSUpnplljnUllW uOlJD lqlp nurJ UO1rJ rJdaH

6L61 il aqumdas paldopv

1 3IddO lN3W3ill3S 3iiIW SSViDfloa dO NOISIJ3a

lNI S3NIl 1vuN3om1d

I

0 DNllIfllVdONVW NOllllD

I L ON 31oa 1WHIOdNI

NOISSIWWOJ 3WUHIVW lWaOtH

Page 150: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W d ZZ

Qm1 q JOJ popJAOJd 018 dupm JO J ogJMdI uoqA dtQXo IUfP81 JO IRq UIOOO 011 VOJlJlOlOP 01 uoqllllJOl1olB

qml JO nml poWllU VOOfq 1dd oq 0111mM IJIIQ OW1lI oqllUJOJOqPOW V topJ1JV go JOJ pIpIIoOxl lUll duJl81 10 1Ol JtOUL

l8l11 fAOIdJl8Il110 Ill 01011

H d 9t III llIOJ l soJnplOOJd 1111 SUO l8Jlld ll pJ8M 8 PU8 lOY lllJO UO l8J

oJA AUB ll88jlS lAIIl Ol AljJOl ln8 UO SS WWOlll SlAji 9161 lOY lllJlddjqSlll JO tt uOJlllS smlooo J1w IllllllodsU BJl JOJ Sl Un llIllSUlpuo pUB SSlJ

1Il8lS SJUB JlllS Ol lJq8o ldd8 Sll 8J lll WD plllJ 8lo ld Ull MplJJnllO

lOlM E q 8J UO JO UOll8JoJA plll l1J8 UB UO plS8q Sj WJ8Jo s WDEL61 J81 W d L1 au17 u IlnzaullA JU Jl1I1UW Il1lu llplql J uOlun

UO l8JOJA 8 llu puy IIlllumOJlUOO lOU lJ8 SUOll8nl S J8Jno lI8d lll JO somnbllU UO ldjJosop llUJP8lJO m plPJAoJd Jldd lS 8 UO sollJ l Ull M UlAl

E q 8J UO llBJOJA A8W JljJJ 80lll snl plllJ 8l OKOl ll8J lll SlIllWJ lllp pldd ls AU8ntO 8 S l8lA Jll lOU8 1l1llllodSU 8Jl AU8nlO 8 l1lM Al poWWOOlUO JO UO l8l 1odSUBJl JOJ ll8J 8 llIJlllJ8l o Aq UO lll SOl8JO A JljJJ 80 Y

awnalllU lOQlIa OJ pUll paqSJIqnd Alnp pUll UO nJWUlOaqlll alJ uo SIJIUl aql U paypds an qO q

salJuqo pUll BalUJ aql UllIlI llJaql uonouuoo OJ aoJaB AUll JOj JO AlJacloJd jO UO lUlJodsUUJl

aql JOj uonnuaclwoo lUaJalllP JO SBaI JO m1lalS U a JO lOQllOO JO pUllwap JO dnqo lIuq s

SOl8lS pllJUn lllJO lOJlWWOO ull lJoJ lllU SJljJJ BO JO lOUlJ lJUOOJO JljJJ80 ou l8l llI8d lUlU lIld III soPJAOJd lOY lll JO E q 81 UOlllS

lJlM All lS8

pll 8J KOl SlUlwd ls lllpl5n80lOjqM UOlldjJOSlp UMO S WD S8M l l8l llnoSlU od ld AUllllld lJjJ8l lJq80 ldd8 lllllllWJllUOW 9 XJs 8 Aq PU8 UO lOlS

l8l lU lWJ A8P 081 lll Aq plIJ8q lWJl S l E q 81 Jlpun plJlP SUOO S WJ8JOlll J l8l l SUjBlU 8W ld pUOOlS AljJOl ln8 AJOlnl8lS llIJlAJJlpun lll PUOAKslOll sollJlll oJlAO Ol pl ldd8 Sj l lUllX l lll Ol blls III lOE to I Hd 9t

l8l l PU8 lllJ8l oJlAO U8 JO UJnllJ lll JlPJo Ol uO lOJPSjJnf ou S8l UO sSjwwoll ll8l l sonllJ8 ld lSJ d sWJ8Jo ll lllIllPJ8Il llSlSU lJlP J8J lA 8J S8l ld

lUlwA 8d JOll8P lll 9L61 tl JlqW lAON WOJJlSlJllU lUlOJ ld 9 sWJ8Jo lWD UOll PPU uI nt 6 JO J8l0l 8 JO YO 9EU PU8J191L JO sollJ8l OJlAO SWJ8Jo lWD tE O O U PU8 E t8t 9 II8 SlUlwd lsOMl lll JOJ sollJlllOJns llu pnJolll sollJ8l o J8l0l lll SlUlwd ls lll Ol ll8J

SjlllluJAJddy t lllJ o qno at Jld L 90J Sj S O N SJOl8J lllpJlH JO llllJ lUSON SJOl8J lllpJlH EL Wln Ol lUO SJlJ lJ IIJI8l lJqBO ldd8 lll JO XlplIl lUlJW JlJoo JOJ SOIlJlllO lA8l PJnols ld l8l l sWJ8Jo WD SJlJooo

lJ W JJnq JO SlUluodwoo AU8nlO 8IIlMpldd ls lUlwdjnb lJO SOOld snO JllA lll

uolldjJOSlp J8ujijJo s WD Ol AJ8JlUOO l1lll S WJ8Jo WD lllJO S S8q lUSUO l8lWJJO llnl8lS J8 lAoMl lllJO llllluunJ lll

A8lS Ol JlPJo U 9161 toy IllJldd lS lll JO ttUO lOlS OllUBnSJnd UO SSJwwolll lllA llJ lO JBWJoJuI U8 pl1J WD ld wOOJ uodsoJ OU llUjA lOlJ

JllV 8L61 E AJnC uo SWJllJO lllpllY lJ WD PU8 plssoJPP 8 AJlllJJOOIlllJlM AlU ld lllA sWJ8Io lllJlll OJlAO OMl pllY WD 8L61 E UJdy UO

AJlAllldSOJ E 98tt PU8 119 ooo L lJlM SlUlwd lS OMl lll JOJ WD AqpJBd sollJ8l o llll lJJ J8l0l lU sollJ8l OJns snJd lllJ O qnoat Jld O ttl Jo ll8J

Y6 SS8 8 S0SS8 lJlM SJ UlpUOO lll lJjqM slllJ 8loJns snJd lllJ o qno at

Tn Wwnl I WIT II W lVIirn l OCT

tpayton
Typewritten Text
136
Page 151: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

lOOJ oqno 069 sql 006

11 cc

on JooJ O qno

SJO OO I1 JI SI Ufl 5u suopuopUB IU IS S U OOIS SOl 8 Iq5 3

lE 1uJPIYJ folfl

MOJlCI pllllJn lJlll Sll SliJJllq lJlAO lql JO lUnOWll

lql U SUO lllJlldlJ Ol plJl lUl S WD AJiJU pJOY e6L WlH U qlJOJ llS Sll

wiIr eL 90J JO llllJ lql JOJ AJJllnb pJnOM l lJOJlJ lql pUll Sl Un iJU SUlPUoo

ql M SJlJOOO 1IW SIlM JlpJll llql Ol plJ lPUll Al poWWoo Jllnpll lql lllql Sllll l

PU UOHllWJOJU llll plqS UJnJ uooq OSJll lAllq Slsn Sl pUll lSoWnd SAl poWwoo lql iJU MOqS SlJnp d ql M iJUOJll lJnlllJll J UO l PPll UJ Sl Un iJU SUlPUoo

qlM SJlJOOO 1IW 1Jnq JO SllIlJ l PZ plspdwoo SlUlWd qS lql lllql iJUHlll PUl OAU Ullplp AOJd Sllq lUllU IlJdwoo lUlWd qs lUlllSU lql qlM UO PlUUoo uJ

JJlSl OiJJlll lql JO l UlSqll lql U l UlP Al lA lllqOJd iJupnlS U A1JnlYJ plql SIlM 01 iJU pnllll AJSnO Aqo SIlM UO SS WWOlql lllqlr pJOlJ JO l UlP

Al lql JO l ullJlpuod lJdlql

S qlqM pJllpUlllS plqp lslJd AJpolnlllls lqlJllJll 10U soop lsJnoo JO S q pOOd qs AlIllnpll SIlM lllqM JO PllJ lql qSJqlllS l

01 JooJd JO UlpJnq AAlllq II pllq lUllU IlJdwoo II uoHOOSU JOJ lJqlllllAll

JljJuoJ OU SIlM OjJJlll lql lJlqM SlSIl l U lllql P IlS UO SS wwolql SlSIl l JlqlO

pUll U61 9J S EI ptCo17 EuduH oJ EU lsuqnd Ul JlsJM uJ pOOd qsAl powWoo Jllnllll lql SIlM lllqM S PlP lP lCI 01 jJU U IlWlJ uOHslnb lJos llll

POPOO JlllA oMl lql U ql M plJY SIlM W IlJlql lllql Sllll l

PU APlllJ pJOlJ llll LL61 JEP W d 6J oJ dI StuUJ1S spuuflJI IJNutCo oJ tunpunloq luJ 9L6J JD 0 epp PZ d 8Ee UO SS tutuoJ Jtu1lUW Ul JPJd spood ifUlf 9L61 98 W d 6J JU 7uU JnzJu JA JUjuJ lJtuV lJlUj JP qlUJ UO UIl W IlJ ljJJllqlJ lAO llIlW l jJlJ lS MJlqlO Ull JOAJlAO lJJllqol PlllOUUlll lJnJ qlUoW X

S plllll lOS S JlpJll llql popoo lWl

AJOlnlllls JlllA Z OMl lql U ql M Jood qs lql Aq plJY S W IlJII J lllql UO S lpsno AlJd U PJlq Sllq UO SS WWOlql UO llll WJ qlUow 9 X S lql OllOOS lJ

ql 1r Jllq ou S lS Ml lJ lJPlll lJqlllJddll lql U UO llll W J qlUOW 9 X S lqS Sllq S ql UO Ul IlJl II jJUIIlW 10U S WD APlll1J JOJJl

lA 1IlJ1S U WPll JO J1l JlJ UO plSllq lJll qlqM SJlA IlM JO spunJlJ JOJ SJlpJll lAq SUO l1lJddll 01 AJUO slJddll UO llll UIJ llll lplW lnoql M S E q 81 UOHlSU l UI J Allp 081 lql Aq plJJllq lW l lJll SW IlJlql lllql lUlWniJJll s ld

bJS 1J 1OEZ0e S d 9P JOSlJnp lOJd lql ollullnsJnd pllll l pnfpll ApooOJd lCI AllW WD JO SW IlJlqllllql plpnJ uoo S l AJjJU pJOY E q 81 UOHlS JO UO lIlJO A 11 JOJ plpJllMlllq lqjJ W lllql SUO lIlJlldlJ lql JO lJnSlllW II AJdw s lJll SlJPlll JnJMllJ Jlpun

lJqlllJddll lSoql JO SSl Xl U Sl AJlS uOllllJodsUllJl JOJ SljJJllq l Sll WE We Sd 9P U pluY lp lJll qlqM Si8Jllq lJlAO PY lql JO ZZ UOHlS U

plsn S pJOM lllql Sll SUO lIlJlldlJ JOJ W IlJII ullql lJOW jJU qlOu S bJS 1J IOE Sd 9P 01 lUllnsJnd SljJJllq lJlAO JO AJlAO lJ JOJ W IlJlq llY lql JO

ZZ UOHlS Jlpun sjJU Jd JllWJOJ OllJOSlJ lnoql M Sl lJlld qloq JO lUlSUoo

lql ql M SW IlJ II11WS JO UO llll pnfpll JllWJOJU lqllWJOO bJs 1J IOES

In JNI S3NI1 VIlNHomld A oJ DNHIfUJV mNVJI NoDIIO

tpayton
Typewritten Text
137
Page 152: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

rlid tt

I

JIJJlo lUlJUIlJllllJS1It1111W SSV10nOO S

llqlll nJgUj gq PlnoM lS1r S ll U lSll llU JO

plllMll lll AlllUjPloolV P lld lllM Slllllll O llll llJ lll lWll llllllplq lOSlpS WlllM SlUlwd ls llllllllld AJlloU Ol pIllllJ WD 1lAOO10W Slllll JO UOllllOld

dllS W lll Ol pili IOlM UOlldposlp UMO S WD SliM II 6E61 l 0

081 PZ d LOI uolfS IU1U10IJJJIJUlUlO IJlrJlfJlJ1U 1 0 F UOfllW a8JOIJDpUll EZ61 lD IlS ES d S6Z 0 UOJ F IIJ1J1S PlaflIJl S ff01S 1 0 NN F

1J1111flnfY llS pUllWlp lOllsnf pUll Al nJg JO SQldpupd lllI M pIl UlP lq AllW

pUll UO lllOS P S UO SS WW lllUjll M llnllW II S lSQ1llU JO lOUllMOUll ll

1191L

E vSZ 9V9 OOO L

E vSZ 9

06 EOZZZ 9EvWVV9

301lH1I3AO

8UIPllJ JO me Jad SQ8Juq

lV Oxu UUQUqE

LS Z x n Q8Juq Jns JQluneLS Z X L90I JO Q18l1

L8t 1QQJ lqnt

1 J qn IIt sql OOS V I

SJQIOlQ lIIW Bl Un 8u sUQPUlQ puu SSQIUJU1S SlUU IQQ1S SQ1UJ 9il UQQ1XlS

ff 8UIPIrJ fo 1

1O 9EZ

vE O O tE 9StZ

vE OSO Z

6 99lEtvl

vv lvS I

301lVH1I3AO

8UIPUl JO me Jad SQ8Juq

lnmxu UUQ1 q E

n1 x n Q8Juq Jns JQl unesnl x L 901 Q1UlI

NOISSIWWOJ t1WUllIVW lVlItl03d Rn

Page 153: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

KI W U

tClVli1 IJi1S lUV1S1ssJDNDIIOd Hd3S0f S

1

llUYA lAll1ll1S1U1WPll lWoolq lAllq S IlSSlWSP lq1 A gU1PJOOOll pUll lpllW UYlq Sllq

U011llU1WJl1 lP q msoN plJldx lSllq MllA lJ 01 lU1UJJl1 lP p noo UO SSlwwOJ lq1qOlqM ulq11M lWl1 lq1lllq1 pUll sgul Jd lSlq1 UJ SlUlll dwoo lq1 JO IlSS WS1P6L6 a lsngny lq1 01 UlJll1 uYlq Sllq lloodll ou 1llq1 UlA S lO lON

6L6l 8Z Ii1qUJi11di1S

tIILON

NI StINIl s n

ANYdWO3NIDNtI SNIWWO

6L 6L ON 31oa

a 1 StINIlIS1I3YW

1

ANYdWO3NIDNtI SNIWWO

8L 6L ON 31oa

StIIN3DY dIHSlLL a l 0 dIHSWY3 SNOHlNNIHS Y IHSYWYA 3NIl s A

1

ANYdWO3NIDNtI SNIWWO

LL 6L ON It Ioa

NOISSIWWOtlWUHIVW 1VI3UiH

Page 154: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W II Ot l

JOpm OtlUJI I ul JO poeocIlJP aJ8 JmO OOJqllMl flUnUOClOv 81 pili 8J JO an OWII0111 Uf81UOONItIl IV alnpoold

put I1IJd JO 1lOt111 UOlUlWUJOql JO 8tl olnll Jopun POl1PlIOlUOO AJIWIOJ UI 18 109 OAlq IOI1rIllllnoq I

Ol IOSJlApll P PIOlP Ullq PlllJlll S1Iq lS1IO q01llUJ lnSSI olS1lQ lqllllql spunoJ8lql uo lllSSjWSIP Jllql JO plAOW lAllq SlS1IO llJql lSlql UJ SlUlpuodS lH

6 6 8 JaqlUatdas pazllDU11

DNIa3301ld dO YSSIWSIa

lNI SilNI S O

iI

ANVdWOlNION3 SNIWW1J

6L 6L ON

a SilNI SlI3VW

iI

ANVdWOlNION3 SNIWWO

8L 6L ON

SilI lNlOY dIHSlll m 0 dIHSWV3 S

NOHNINNIHS VLIHSVWHVA lNIS A

iI

ANVdWOlNION3 SNIWWO

LL 6L ON

NOISSIWWOffi JUnIVW lW30Hd

Page 155: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J l 1ii

mllllS616L61 f Inr J Y10 lUlW IJl JO UO SplJ 10 19 pu I 60911KlJ jBWJoJul UO1t Jlp SUoooll uo JlpiQ m17 S A A JU OJ

JUr1JU3 GU IlUUm611111S 61 6L61 s lldV biJ liJ I06f ll Q ItWJoJuI Satin smns Pi1JUn It 0 mau3 SU tuumJ z

6L61 il lSnanv

J2pnf MIJ7 JtI 11JJ1S U WPV3AVlIDOJ 3 NHOf S

rllpnf lJd q11M plsslwslP lJll SlSll J lq1 pUll pl1UllJlJ AqlJ lq lJll 6L 6LpUll 8L 6L LL 6L soN ul SlUlllldwoo lq1 MllJpq11M 01 SU0110W lq1 SlSll J

lSlq1 ul slulllldwoo lq1 llnJlsoJd 01 SlJ1S lP JllJuol ou 1Ullulllldwoo rlUJS

slulllldwoo llJq1 lq1M llJpq1 M 01 suonow pl1Y sSjwslP 01 suollOw lq1 01 1Ulnoosqns lUllulllldwoJ

zUlq 1J11JJ pn SJJ lJll SUO SjJlP uOlsslwwOJ lSoq1 1llq1 pUll 1Ullulllldwoo lq1

tpayton
Typewritten Text
141
Page 156: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W d l 1

iCiDtaJJasA3NlInH SIJNVlId S

UO SS WWOaql AB

auoN NOUVW OdNI A V N3W31ddnS

pIlJaplo os S

II pIlnullUOOS P aq l l1lql al1l JdoJdd1l S l 8lIpIlIYlOJd S qljO lXalUOO aql U pIll1lldwalUOO S UOl101l JaqJnj ou S1l qonw

S1lUI llu pIlalOJd S ql WOJj pIlnsSJ aq JJM alnJ pIlSodoJd 1l

l1lql pIlPUalU lOU S l l1lql pIll1l0 PU AJ nbu jO al lOU au

pIllaldwoo ualq MOU S1lq alnpllqos lluny au OV Nn

saouaJajuoo JalI1 d qsW1lals jO lOnpUOO aql llU UJaA08

uOlluaAuOOI1luoll1luJallI pIlSodoJd 1l uo pIllsanbaJ S1lM lUawwoo onqnd 17ZL8 lla pIld vt 6L61 91 A1lW pIlqsnqnd AJ nbu jO alllOU Aq pIllnmSU S1lM llu pIlIYlOJd SJU

llu pIlIYlOJd jO alu1lnlI lUOOSJO

A vwwns

NOUV

6L61 Jaqopo

S3N3 3dNO3Nn

Od nONOdO 300NO NOUN3ANOSNOUVN 03 INn 3H DNIO VD3 A InbNI dO 3UON

O 6L oN 31JOO

AI 1I3ldVH d 917

NOISSIWWO3WIIHIVW lV1I30tld

Page 157: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

I w u

AJVJaJJasA3N f1H SDNV d S

UO SS WWOlq1 AJp mulUO lS P lq llu plllOJd S q1 reu Gml3mlO M3HUH1d SI LI

pUll UO SS WWOlq1 Aq pl1dopll S 6L61

L1 lsnllny uo lluJllloJd S q1 U plAJ lS lluJlllOJd llu nU luroS G Z 1U llldWOllu ss wSG I JlpJO lq1 reu G3M3G M0 SI 11 3MOd3 M3H1

SllJlld Ull 01 sSllOJd lnp lldwll plpJOllll pUllApOOOJd JlllllW S q1 pllPUllq Jll110 llu p SlJd lq1 1llq1 Uo u do lq1 JO S UO S

S wwolq1 Ilsunro Illllll Aq pl1U lSlJd lJ 10U S 1UllU llldwolq1 req1 PllJ lq101 UO lIlJlP SUro lnp llu D lluJlllOJd lq1 llu nuluros P pUll lU llldwro S q1llu ss wS P U UO llJ lS P S q lSnqll 10U P P Jll110 llu p SlJd lq1 req1 sPuy UO S

S wwolq1llu plllOJd S q1 U pJrolJ lJ lUl lq1 plM l lJ AUnJ llU llq JllJY

lluInJ S Jll110 llu p SlJd lq1 Ml lJ 01 plU WJl1 lP6L61 oz JlqW l1dlS plAJ lS ll lOU Aq UO SS WWOlq1 SW IllSl JO poddns

U llU lp l AUll plll wqns 10U pllq pUll JlllllW S q1 JO llUplllq pllnp lqls lq1JOJ moodll 01 pl1 IlJ pllq 1UllU llldwolq11llq1 spunoJll lq1 uo llUJlllOJd lq1llu nuluros P PUll1U llldwro lq1llu ss wS P lluJlllOJd S q1 U 6L61 L 11snllnyuo JlpJO Ull plnss SPJllH AlISll lJ wllIIM lllpnf Mlll l reJ1S U Wpy

6L6l H Jaqopo

NOI1 dOGY dO M3GM0

lV 3 NI S3NIlS3 V S G31INfl

0 SNOS 7g VN 3J 31IW3

6t 8L ON 3 OG

NOISSIWWO3WIlHIVW lV 3a3d

Page 158: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W d tt 11 1

18p IuJmq puod 8 JOJ lIOtboJ PUOOlM UBUJ8IdwoSUllue aplO 6L61 ot UJdv t

6L61 l llIIInv OJ lttuu Puv 6L6 Ll one OJ uoql 6L6 n W OJ uoql 6L61 9l RJdv OJ 6L6 IlqMlW

UIOJJ al8p lup qMIl JO lluOURMIochlOd 81VJ1d11JnoJ pIlUlJluqputpnlllnblu JIlOJoWd p1Iq lUOS l Woe 10lUJ1lldWOI

UllSSYlQU lll Ull M IUIlllJlO S JlpJO Ulll msllM Idwoo Ol lJnI1lJ JOJ IllSS W

SO SllUJll ll JO lSJnoo lll lllllnlllJ pUll Sllllp lll llnpll lIl Ol JlO lJO llUIP S

lJd lll JOJ S l lllll Slp AOJd LvlmS i 8d 9v Lvi lln8 uo ss wwolS1l

S l lUlSlJdpUll Jlllddll Ol Ull M uo JlO lJO llUIP SlJd lll JO llll l JOJ lUlwllpnf

Sl llmIlsqns Ol llJJ lOU S lA l1llUlS lJdlJ JlMIlI uou S lUllUIllldwoOSJVSWIlllo Sl JO lOUlpJA llAIlllWJYJ1l

JOJ lUIllldwoo SfllUI SUOIllllll1I1l lll llnmsqns IlW lUllU1lldwO lllll UlllW lOU

lOp llupllOOJd Sfll U SJlOlJo il JO lUO qPllu lSlJd lJ Ol UO lOlllS lUllUIllldwO JlA lMOH l IlSunoo lnoll M llUIpllOOJd Sf lUllU lIldwolllll lJ1lMll

IUlll S JlOWO llu p SlJd lll JlPJo J1lJnplOOJd Jl lJlIlUll U pllOU sy

Wll llSUIllllll pUlJ lp Ol SlUlpuodS l8 JOJ pllu lll llUIlllJAqo pUll SUO lllJlldlJ

JOJ sWIlIlo s uOS fjI lllUJlQ lJoddns Ol PJOOQJ JO lOUlpJA l l IlllWJYJlI UlI

lp AOJd OlllUllIJ qlJ lll llUJll llplJ lpJO lll pUlnll OllOU ISOlo lUllUIlIldwOpllnp lllIl SlI lOUlWWOO PlnoM lS1l0 sn llUoJd JO UlPJnq lll plll lUllUIlIld

wolOlM lll lluJlI llllllllll pUll plUlP ullq plll lUlW luodlsod JOJ lSlnb

lJ llllllll lOIlOU 11Inl1l pill JlnllW Sfll U lAIllllUlSlJd lJ S lUllUIllldwO6L61 Sllsnllny IlpSlUplA

uo W ll OO Ollll pllnp lllIl SlllJlllS OlllUJll ll lllllu lIl1 6L61 01 lsnllnypllllp JlpJO q plUlP SllM lluJlI ll 6L61 SI lsnllny lll JO lUlw luodlsod

IJll lJnJ 11 JOjlslnb lJ s lUlIUIllldwO6L61 Sllsnllny uo lOUlWWOO 0l1lUJ1I ll11 JOJ llS 6L61 ZZ lunf plA IlS JlPJo q SIlM lS1l plUOIldllo llAoqll lll

6L6l Jaqo1JO patdopv

DNI03308d DNIONUNOSIQ Z

LNlY dWODNISSIWSIQ I 83080

y i1 NI SINq SiI Y S OiILlNn

0 SNOS fjI YNllila i1 IW3

6v 8L ON

NOISSIWWOtlWunIVW 1V tlatld

Page 159: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W ZZ

6L6l Lllsn3nv

iJlJpnf MD7 iJll IDJ1S U UiPVSHlllVH A31SV3g WVIllIA S

Y lnUluroS P Sl iiUf ld S q1 1lP10

S 1 puy uoln Yls01d JO lUllM pUllJoo1d JO jOll110J SS WSlP S UOlllpoSsy 1qii lld punoq1SlA opullllY qpoNpUll ouI SlUn 1qii lld SUll1 ouI lUfllU lllUOJ pllO ouI SlUf l 1Il11lldpn lUfI 1lUfll1UOJ OPUllllY lUlll Jg Apoqtlld OUI SlUn SlllllS l Un

lSU lliill UOpll1lldl1 10J OJ suos Jg 1llU1lg JO lU llldwro lq1 lllq1 1lp10

Aql1 lq S 1 llllllW

S q1 U iiUJll lq 6L61 11sniiny In qos lq11ll1lllddll 011llSnJl1 S lUllU llldwoJ Aq UO SllOOO p10Yl1 lOUlP Al AUll JO jOlll lq1 UlA ii l10Jl1 lqA

W q lSU lliill lIJfllJO AUll JO IllSSlWS P 10J lAOW AllW 1UllpUlJ lp II pnro lq1 JO1lp10 AUll10 Sllnl lSlq1 q1 M Aldwro 0110 llnYls01d 01 jJlUfllld JO llnl llJ

10dlllq1 Slp A01d qO qM lln ld JAD JO Slln M Itlll d lq1 JO It llnM OSJllllS

1lp10 AlMroSlP II AlqO 01 llnJllJ 10J SSlWS P 01 A1Poq1nll S llOYJO iiUfP1Sl1d lq1uo f q llZ llnM JWd lldwllXl10J llS llOYJO iiU P Slld lq1 JO A1poq1nll

tpayton
Typewritten Text
145
Page 160: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

J W d tt 91

ltJll t J QlqVOOlOJoJ QlIl JOJ tLtOl ON luawOQlSV lJtd 1I11 alp JO IUOlllWII 011 U l l IuplJadooq PJ110M 00Am lU10r Olp 18111 ootl1 IIUOUodoJd 0 JO lqlJ UJ aIlIllWOld tUOp tltA 001 lUJof oU1I OUOld 11 oqlq 1Xl oq 01 SJOU81UOO lno D11U11V QllOS sn 10 1JOUt81UOO polUJotpJOJ JO Joqwnu 0 VO IUQtll11lWll IKln8JOP OJON I

S 1p Ol Sll jI1Id lql raql pgPUllU 08111 SlIM U lSllll lUll III AIJllJllnb pg811JlAll

lJllM Jld s mu 008 Ol pglWI aq PlnoMll AJlS lU ofllplllql pUll tLQ ONlUlW llJiIl JllJllq lllllds lql qljM AISnOlUllllnlll S llllJldO E 99101 ON lUlWllJ8y ll AJlS lUJof lUn qlU lJdL I lqllllql pgPUllUJ UO SSJWWO lU

6L61 8 ClUne uo

pgYlpow Sll pgAOJddll SlUlW llJill llJql lql pUll pg UClP Clq I1A SUOP lld lUtLEOI ON lUlW llJiy JllJ1lq lllllds lUn qlU lJillL I pAOI1

81ldllH lql JO UOjlllUJWJCll uOOn AIUOllCljJ l llJlll UA l JCllpClqM JO lA lllJodoAIllll pgWIll aq IDMll AJlS lu of lUJ qlU lJd I lql Jlql lqM Ol SlI Jllll lun SJ

E 99WI ON lUlW llJiy 17 pUll AlPofllW 8pJjIpoM lll pgJjnblJ qlqM UO llllAUll 8UlJlll WOJJ SllU lJClJUOl ldOJn3JlnD s n JlqW lW UlA lS lql lpnlllJd

PlnOl Alql SllOA llJIp pllq SlUluOOOJd lql J SllU lJClJUXl ldOJn3Jlno s n UJllOA lUO ullql lJOW lSpJlX l Ol SlUluodoJd lql JOJ llqllUOS1llJUn SJ l E SlplIJl

pgllllJll lip 8uAJ lS SllU lJlJUO llql UJ SllOA lAY Sll AUllW SlI Ol SlUluOOOJd

lllpUlAlIW pUll JllClIlun lJll SlUlw llJ811 plS AlJ lql 8u PulIlSJlpUn J lqlqlA pgJlJllUJ lAllq Ol UO sSJww lql JOJ JldoJdlll SlIM l lllql pUll pgAOJd

elll aq Plnoqs 017 pUll 6E SON Sl qWX3 8UJJ1llH SlI pCllJJllW SlUlWCl lJ811 lqllllqlpllJill plIq 8UJplllOJd S ql Ol Sl lJ1ld lip I lllql PUllUO l SlUlIlSllOJd

sllldS lJ OMlUJ pgYJlll laq JlpJO qlS ClUne lqllllql 8UJlSlnb lJ JO lUllX l lql Ol pCl1d lJ OSJllIlSuno 8UjJ1llH JO n1llJns S UO sSJww ClU SJCllJ1ll UlllOO lUluOOOJd llJql

lql Aq Plll wqns SlIM UO l soddo Ill lJIld UJ AldlJ Y lUJ qlU lJil lllllPIlWllllJlU lD l u8Ildw pUll I A S lJOOsUllJL IlIlUlUJlU XlJllUI lJlIqlSJI lS

l8ulllJV pAon 811dllH 8uIoAUJ SlUlw llJ811 llJql 8U AOJddll AUlIUOlllPUOlJlpJO 6L61 s ClUne S UO SS WW lql JO IllMllJpql M 8ulJlls SlUlllSllOJd

lUI SlUn SlllllS pglrun pUll lUI ll AJlS pw1llS JO UO lllJlp SUXllpUll uOl1l lYJllI JOJ SUO l lld lql lJll UO SSJww lql lJoJClq MON

6L61 91 JaqotJo

NOILY 3QISNO 3 3HL nil DNIAN30 30 O

IV La E 6 66 SON LNallaalloy

L LL ON LaJ oo

NOISSIWWO3WILHIVW 1YM303d

Page 161: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

nj II

SL6J L08 M llS 81 f fl66 ON IU8U1i1u8y RJlSUDJS uosuloru lllln UlllS3J l1fl Japun suo1 t

jUllOA U JUOO vnbal Joo pno 3101 BJ W BUBJJIl J B rsoX J O Kl d Ill lBP UO lBJ dx POJUJf sn UOJlQpgAIOftP lJl Ja JUJof lun If U d L1 aliI JI O AJa tu of II JO SJ waw se IUO apan nn U llW O lun q3U Ud pull 11

p wouaJlJuoo u doJ1d8 UJ SJqwaw a8u s n ll hUW LEOI oN lUlW V018apJed 1111 nn 11111 sa Il1s 01 l1l 1JV t

Z Alnf S UO SS WWOJ lql Aq plJ nlm 0861 I AJllnUllf a7 llllp lA lYlll l U

lgUllq lqllYlD lJ Ol ply poWlq Plnoqs lnq 6L61 8Z lunf uo plIY Sll JlpJO

ql lunf lql jO suol puo lqlllW 9901 pUll 9 6Z66 SON lUlW llJgy

8L61 JD J O 9Z1 m 111 M M S I I 61 pUZ J 1 8 UO SS UJUJoJaUJ1Jvjf IVJapa1 JUI saun salVIS pil1lun 6961 JD J O L81 81

L1 M M S 8 L8 18 LL pUZ JOZ1 UO SS UJUJoJ ilUJ1JVjf IVJilPil1 JUIsilJnsolJUg ilJVdS au Jvjf ililS lllAOJddll JOj SSllq II S1l SUO lYlfqo jO l UlSqll

lJlW lql uodn AIlJ lOU AllW pUll IIpllP AJOlnlllls lUllAlJlJ jO lqgl U SJlllllW

I UOlYlS 1I11 llllnlllAl AllUlpUOO lpU Ol Alnp lA lIlUJJYJll Ull Sllq UO SS WWOJlql l1lql Jlllp S l pllPUI snOOUOJJl S lYlll l lJqllqoJd pUll lUllUO WJOj

SlUlW llJgll lql gU ZAlllUll AIlUlPUOO lPU lnoql M Sl lJlld ll1lApd Aq pllll loglUUJJOj lql U SlUlW llJgll lAOJddll lsnw UO SS wwOJ lql l1lql UO lOU llll

SlUlW llJgll Jpqlql M pllll OSSIl SlYlU lq uOllllJodsUllJl lql lAl q1l Ol AJllSSlYlU ullql lJl UO

U AII50P lJOW gU Pll AIIIlJlU lg pUll slpd gup y AJlYlJ P lq PlnoM Alql llOAl UlJ ljuollgU S II lSllOl lJlM SlUluodoJd llJql 1I11 n lUllX l lWOS Ol SlpllJl

lUllAlI lJ lql U UOlloowo lS1llJ U PlnoM plJnl nJlSlJ Sll pUll SJood qs Ol SlAJlS plAOJdw plJ lllO Alql l5nllYlq plAOJddll lJlM SlUlW llJgll lUlllSU lq

plAIOAU SlUlW ll 1l lqlOl SUOlIl Y POW ll1lpdoJddll JlqlO lqpslJd JO SlUlW lJ nooJ gUlOA l UlJ ljuolql lsnfpll gUplllq pUll llou Jlljll UllUO SS wwOJ lql lY gu dd qS lqljO lAlIlIO A lS MJlqlo JO SJlpJll lUlJ ljuoUllMl lq llljUn l Jlwwo J SlllllS

pll Ufl OlllllUlWPl lP lJll q qM suol puolnpoJd SlUlW llJglllUlllSU lql Ol

plllll lJ Sl lIlJdgU lOA l UlJ ljuon SlUlW llJglllUlllSU lql Jlpun l UlWWO

SUOlIlJOOO lUO lgJlW l AllW q qM SWllllld gU lOA Illnpll lql pUll SlUlWlJ nooJ gUlOA pUll wruonb l UlJ ljuo JlllnlJlld jO lqgl U plU WllXl lSlq

S AJOlllU WPS P pUll J lljUn S Sl UlJ ljuoOOOJn3 J1nD S fl gU lS Xl U SllOA

llJql SlUluodoJd SMolI1l q qM lUlW lgUllJJll Ulll1lql UOlU llUO SlUlllSllOJdJlpJO ql lunf S UO SS wwoJ lql ql M

l ullldwo Ill lUlllsqns U lqOl punoj SSlI lqllUOU S 1LEO llUlW llJgy SlUluod

oJd lql Aq pll lIlP lSlq lJOjlJ lql pUll gU snjuoAIIIl lUllod S 01 lplJV jOlgllngulll lql qgnoqllY z

JlAOOSl1lqM SUO PPlSlJ JO Slg lIApd gU lOA OU Sll1l lJ

1LEOI ON lUlW llJgll JllJllq lqljO 01 lP lJY 99WI pU1l9 6Z66 SONSlUlW llJgll l AJlS lU of OMl lql Ol AluO qllllll SUOl PlSlJ gUlO A

Wlql UllMl lq SllOA llJql ullql lJOW ou jO IlllOl II

lSIl lJOjlJ lql AllW SlUlW llJgll llJql lql Ol Sl lJlld llJql llll llOA l UlJ ljuollgU S II Ol pl1l lUlOSIIl S pAon glldllH 1LEOI ON lUlW llJgy Jlpun JlpJll

JlU lllUOII Sll SllIlJOOO l UlqM a iI JlpJll Illnp A pU Ull Sll Sl UlJ ljuoU Slllldp lJlld pAon glldllH lUllX l lql o llOA l UlJ ljuolUO Ol pll WIOSllllJll 9 6Z66 ON lUlW llJgy l AJlS lU Of lUn NwoJ lql Ol Sl lJlld lq

6L61 8Z lunf uo lUn q UlJ J pUll JI Aq pl1Y lUlW llJgll

plS AlJ lql U pll YlD lJ AIllllJn 1l lJllSlA plfqo lSlq gUOIlq AllW l AJlS lU Oflql q qM Ol Sl UlJ ljuoU llOA pluNwo llgU S II AluO lSIlPlnoMl AJlS lU Of

tpayton
Typewritten Text
147
Page 162: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

nlIZZ

UOJ IlOlJIJBIpo uO 8pJ UOOBlI OJ UOj jlOd I JO BlooP 01 88 U1P BO JOUOJ8IJWwolpUB1psq O UBWJIB

l

IfJrJliU1IJS

AilNlInH J S NVlId S

U01WW1WWOIl 8

PIU PJll OUJ S Un SllllSPlIUn pUll OUJ J pU1l1 lI jO UOllllJ P1SUCXXl8

pUll UOlllOY JlIlJ JOj SUOll d llllltU 03830 80SJ U 380d3 83Hom ll odSOJ ul Slu uodOJd Il q Jldopll E 6t66 oN

lUQW JlJV jO U01WUQlXQ Il PU1l uol1lJ PlsUOOQ8 JOj uOll d uo JpJO6L61

TnlIWW l wnlW a QnT

tpayton
Typewritten Text
148
Page 163: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

6tl J W d ZZ

l unoJ llup H 10 n JnB JOj 3 l qoN uyof pUll J l1Vl nvJ N At UOJvJuol1 POSS SJ npoJd Jl1lu puod pUI JOj P YY IH 1 IJ

u J juoJ llu 1I IU ll lIIJON SIJOd l1 PP II ue1P1S Ajell 10 IseoJISO1pue UOlOjUOJ pUejeoz N elleJ1Sn jjnD II l1ueIl s n UOlOjUOJ lql lOld

ue ueJJ I poW lIUllIl lIIJON UOJ jUOJ llllllOJd IseOJ yped lIIJON u ueJJ llpowUOl jUOJ JlnD pow UOJ jUOJ 11l1l Old s n lluell lIIJON soll rnw U J jUOJ

llllllOJd lluellY lIIJON s n uep1 JOj Jf IVJqV1 UOIIW pue IUif JVW YS 0 UVISOOU J jUOJ WopllUI pollUn jlnD pue u

JOjUOJ 11l1l Old lljeB l1ueIl lIIJON U J jUOJ 11l1llOld WopllUIpollun llueIl lIIJONU J jUOJ 11l1l1 Jd l1uellY lI U Jd llueIl lIIJON JOj uJ1 3 VPIJIVJ pue A7 J pmoH

UOJOjUOJ ue SOUOpUI yped pue U JOjUOJpunoqls 1 yped U J jUOJ Sl eJ1S oyped JOj suOf J PJVY N pue 11vqtul3 SlJlUoYL

u J juOJ puel elll pue eAejew Jodellu1S JlnD II lueIl pue U J jUOJe s uopuI jlnD II OllueIl UOJOjUOJ IS3Jed JOj Jf IJnL UI3 pue uOYVW N UYOf

UOl jUOJ IzeJB leld JOAl1l1seOJyped pue U J jUOJ ueodoJn3 ISBOJ oyed neoJnB IlPel Ue1SBleJ1SnISBOJ yoedOOU J jUOJ dlllSW IS ISBOJ oyped eop my Ulle JOj UV ON J PIAVa pue Vd aUO

lu wooJll le1l yed eAerpue e Jo ueder 10 OUOJ jUOJ 11l1l OJd oyed sueJl lluolluOH U JOjUOJ lql Old

oyed sueJl UOJOjUOJ e pow lIIJON sou ddmlld ne JnB lql lOld lJOA N uOlOjuOJ 11l1llOJd jlnD II ol1Uejl eOloueder JOj OUIJPVnY aJo o pUll u JvAI Jvy

u JOjuOJ eOlewer jjnD II O luellY s nu J juOJ eop my1I1nOS ISBO lS01jlnD II ollueIl UOJOjuOJ e qwnlOJ ISBOISBtIu J juoSBuelnD II spuelsl pJepu 1 II pIe OOI oouOlOjuOJ ollUlWOQ olueS JlnD

II luellY s n luOWOOJll 0le1l e pj lS01SlJOd JOAl1l oou J e IS pue SOlBlle JDs n OU J jUOJ 11l1l1 Jd ueoPN ISO1ueop my JOj JMV1 1 UVYIVN pue aU11 JnOlUS

UI lAJOS pue nos JOj JuUnJ1 lP vuoa pue V YS w PJVP3U01leJoWOJ d lIswe IS ueWJ le1pue OUI s un dlllswe IS ellOl SJoleJodo

dlllS llejd ueop W 10 j unOJ JOj VW 3 l qW pu II J At wvf uodvJ P vuoN

9161 10 llUlddlllS 1I1jO qtj UOl J pun jllJej punoj IOU sAep Al uluuelll ssol uo OAll lP pue SpeJ1UOO leJ jenp J pun p pJeo ollrno 01 Iqeolldde sollJell Jns J lunB

6L6l 9l JqopO

StIl lS G3l1Nfl 3Hl m 3J1I3WWO

NDl3110d 3Hl NI SlSO 3fld G3SY3l1JNIS1I3I1I1I m A1I3AOJ3M 1I0d StIDlI HJlIOS G3lIG3dX3

917 6L ON l31JOQ

NOISSIWWOJ 3WIlHIVW lVM3UiB

Page 164: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W J tt

8t

qn luowaoJly 1ll JOA NoON lAIC puo Lt n ay lI llJOId C m UOP llllolllPpI 0llJ

Ilt1IlIoopqlll IO OIOJIIO PS lid l1IlRO d

pUl 5t 1 IOIIDJlIOJlOD plil tt n OOUOIOJIIO lq1JoJd P 00 wns IOfllqIOpIJIu8a I1

wJUJ Ct 1 JUCO wopIuo POlI n 11OO tt 1 jUl UIlIdOlllRO U d It

qn I CO lqloJd JIOO PUlIlY lOlOlI UId C or8C n 10lq1JoJd U 1IWI1 plil OlUllY

ltlJUN LC n nnrnSJIIIIJ Y lRO llJOId UC n jUlIqt d V snOlUI1 Y qlM N IOn

11 5C n I CO qIoJd pmoqllOhI OlUllYlIlN sn Ulpoql tc n 108IUIl OPUIlY

ltlJUN llJOd IIJPY UlJIJDlS I JO lRO1IOhI CC 1 IJUOO qIoJd lnol d qlMN IOUIUIlQltil

tC III jUlUIJIIUOPUI OUJOId IC n 0PunuqllOhI d Qt 1IlIoopqlll IJO

p N my JlOO OlUIJ Y Sn 6t III jUllq1JoJdJlOO OlUllY lI uld C 8t 1IlIoopqlll

0 ltlJUN UJCIdJm Lt n 10lq1JoJd 0lJ18 OllU1J Y qlloN 9t n IJO

lqlJoJdwopIuo JlIllunOlUIJ Y ltlJUN 5t 1IlIoopqOl IOU OJ1IC01ftil d tt no 1OUOJI10qIJoJd OlUIJ Y q d

OlUlIlY ltlJUN Ct III IOlI9JIJlIllO PUIJl1lqJ pol lJIiltus Il00 OlUIJ Y tt n 10qIJoJdUJ01Id It1IlIoopqlll jUl9O llUlC JIOO nUlltY sn Ql n 6056 ON luowaoJ1v 11 1I 1Y 1IIJI

q nOS l9lI9llDsn 61 no 10IllH JlOO Ol UIlY sn 81 n 10I1S UtL 01 I CO uopUJJlOO PUlltY UI pqn IOUIJ9JUCOllllloJd hi 19lI9l O Sn UltUIJ

R1til 51 C1 n UII JU dqIurools lRO d lIl t I rilluoll UOH n os lqlJoJdoA NoON I I n IOUOIOJ1I l100s JO 1IlOO lIOhI JlOO OlUlPY Ol 1 10IJqwnlCO

1IlOO 1IIJI 6 put 8 01 IOUOIIJUOO nUlJOO IJlUIIIJ hi L 1IlIoopqOl 0ClUIlIJlI00 o JIIIOJ

OllllSll00 OlUllY s n U put 5 oopqn Ott6 luowaoJ1v PlY 1IOhI llJOd Ill 1S 19lI9l1D

sn rl oopqOl jUllq1JoJd UIOPIY 1IOhI Y 1n m n 1tIII8N Il put opuodlOlI

JOJlI poouOlOJOIoAuq 8l1 lIOOboJ IJ1ll JlllUOP CO OqJ lOU sl1Jl 51 UIl11 0 soh nq

O8l111OO 8J pnP OIZfJOqlftV UOJllJtUWOO tql18QllUJlIOftboJ uOl1pod lUJOf pIIlJ pnoJAUI pvq UlUU0l8ApU1 JO OSVt

c181 l Sn Ilt

lJOuJdo lup ltmuoo vadoII 8ft 111M j nU1llIftWI IOUOJ111WUJCO

Tl pUll 61 II I SlO OOpqnS U SlUClpUodSOJ Aq posoddouooq suI IOIM OUOAJCIlU Ol OAllOI JOJ uoppod 11 POlY VclAI UO lllJOOSSV SJO

onpoJd OJ A lUClpuodopUI 1Iu t lIUJpoOOOJd S1lOl Sl ocpqnS 11lUO llPPll OMl

pClppll JOPJO Oll OllUOWCllddns 11 6L61 I Clunf UO pCllY Uooq plll SOllJllloJnS

JO unq IOIM JOJ SjJJlll CllllJlldOS 9v Ollllu lUOSOJdOJ SlO OOpqnS 9v pCll Slq1llsoJOpJO 01J c SlUOpuodSOJ POl1lUlisop OJOM JOpJO OllOl V XlPUoddV U pCIlSlSJOPJ1l0 pUV SOOUOJOJUOO Oll PU1I tUOpwodJQ dISWllOlS UVWJOlllA OUI SOUnd ISWVCllS 1Illoa OSVSJOlllJodQ dIS lIUIII U1IOPOWY JO l ounQ 01J

1 9161 lOV lIUldd IS Oll JO qv I Uopoos SCIlllIOoopOUSA1Ip 06 UllllSSOI uo SOllJlllOJnS Jo unq Ions JO uomsodtu Oll JOIlOI M Z

PU1I posuq OJ1I SOllJllloms Oll

IO IM uodn SUO l PUOO Oll pCIllld opu1I JO uoosOJoJ OA1I1 Plnols luowlIpnssoUlsnq punos puv oouolImp JO OOJlIop 1li1 II lIUlsn SJOPJllO JO JOPJ1IO

Oll JOIlOI M pUll IOJlUOO SJOPJ1IO JO S JCIJJ1IO Oll pUOAoq JO Op SlnO OJIl AOllJOllOIM SJO JJ1l0 JO JOpJllO OllJO SUop1llllqo Oll A1IIOP JO PnJlsqo opodtuAlnpun AllW SUO l PUOO IOlM SUO l PUOO AJ1IUlPJ01lJlXO AUll JO llnSOJ OllOJIl I

sollJ1IloJns Iims JOl lOIM OU WVXO

Ol S1IM Uop1lllpSOAU Ol SP1lJlUOO OlllJ l1Inp Jopun pClpJ1IO ollJ1IO Ol Olq1lOlddllPU1I oopOU SA1Ip AlOU U U1Ill SSOI uo lA lOOlJO sollJ1IloJns Jo unq POlY p1l1 IO IM

SJOPJ1IO JO SOOUOJOJUOO pUll SJOPJ1IO j1IJOAOS Ol pCllOOJ P JOpJO lIUP1l0H pUllUOp1lSpSOAUI JO JOPJO U1I Aq 6L61 9Z IPdV uo pCllll l Ul SUM lIu pooooJd S1J

Jauol lUJUJOA1IOA sowllf UrJUJJlrJl iJJ1A AOI 1IOW II

sllwotl urJUlJlD louql OS1l0 fPJlllOnI NOISSIWWO3H Ae

1I301l0 ONV 1I0d311

In Clll lAIn IlAIl111 W 1 Iitn jl nC T

tpayton
Typewritten Text
150
Page 165: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W Ill

llqtrl lddtl UlUUOU Q lOU sAtlP 09 null J llU lOU sep O UOslS1WllqlltlJ IIU mlj SU lnlllSUOl9 JtlqO Jnll Jl unq iu u ttluoo sjJpm JO Suny Iq1 11 0118mNr UO SS WWQ ll11ql saplU lJOlfSDO m8twopIll U SJlpJll YlOU 6L61 1 lunf uo nss 6L l ON JllP J8jR3IlSlWO S UOSS wwoHIl p JO yo ltrlWRXlP

lSlql 01 Sll pUll lSlJ llU Ill lUlllsqns llS nb lJ lql SSlSSod 10U Soop JOUlAJ llU

plsodOJd S ql IZ pUll 61 11 1 Sll pqns Ol S UpllOOJd lql OllOOS lJ ql MSlllllS pll U1 lql 01 pllJodSUllJl spoJ lJ AI UO SllIlJ lOIlJlUlX Slpnp

U SlJ Jlll J lql JO lUOU lllqllJlSSll SllU lJlJUlX lSlql JlAO lJOW sroUlJ lJUlXlql Aq plU lllU IlW SlUlW llJ 1l PllJ1UlX llllJ Illnp lql JO AUll Ol AJOlllU S

II lq Ol JJlSl pllU lSlJd lJ l Sllq JOU SJlqW lW Sl ply lUlP lOU Sllq JlUO l lOOlqllllql llOU AllU UO lnIOSlJ J lql AllJlP Alnpun pUll Slnss lql UlpllOJq PlnoAlUo snpu Sl lllql pUll lUlAJ llU 01 U PUlllS qOlll JlUO llOO lqllllql spunOJ lqluo AlpllWpd UOllOO lql lsoddo 1 Z pUll 61 11 1 Sll pqns U SlUlpuodS lM

pJXlJ punos IIJO lUlwdOIM lP lql lJnSUl UllOl lllql pUll pJXlJ JO Sl lJlld lqlAq pllU lSlJd lJ lq 10U JlAI SlSlJ llU Sl lllql SJlAll JlqlJnJ JlUO l lld Sl JllqOJnSJl unqpll pOOXlAUll Aq pll lllJll AIlSJ lApll lq JlM l llnSlJ II Sll 11lq1 pUll lnsS

11l lJll qO qM SlJPll1 lql JO lJOW JO lUO Jlpun pllJodSUllJl lJll SJlqW lW Sl AqplsllqoJnd spoJ lJM plJnpllJnUllW U lJOJ JO UO lJod Ill lUll1sqns lllllq1 SlJlSSll

1I UpllOOJd S q1 U lUlAJ l1Ol 01 Mlll1 JOJ plUO l lOO Sllq spnpoJd lJ M pUlllJ AI llllS llllOpqllJ qO qM Sl UlldwlX f lnoqll JO UO lll SSIl lpllJlll ydMI

U011UiJlUiJ1UI

plSS WS P lq lJOJlJ lql IIM Sll pqns JnOJ lSlq LUpllOOJd S ql JO lJlld SIl Sl lJlld lSlql lnulUlX 01 lSodJnd InJlsn ou lAJlS

PlnoM l SUOllllU lSlJd lJ lSlql UO plSllg ro lOU SAllp 06 UnJ II uo lA llllJ lSlgJllqOJnS Jl unq Sl lllql os lJPlll Sl plPU lWll Sllq 1717 ll pqns roUlJ lJUOJlqg lJ pJllMlno llWJng 1fJ UOIAlJ qSlPlllgUllg UlllSptlld Il PUI lql AUllUH8L61 Ol WllSAS llllJ Illnp Sl plUroUllO 9I ll pqns roUlJ lJUOlqg lJ

punoqlSlM Sl Illlll lJD Y S l UlllUllJJ llplW lqL llllJ l U AIlUlS lJdlJPlllllllJ Illnp II lAllq 10U op OZ ll pqns lUlW llJliy l11lM roPJY lSll3 1fJ qlnos

Sl Illlll lJD S 1 lql pUll 817 ll pqns lUlW llJgy l11lM JOA MlN llAllflqL l JO lJoddns pllllO PU Sllq JlsunOJ gUJll lH pUll IllSS WSP JOJ plAOW

Sllq 817 ll pqns U lUlpuodS lJ lql UOlPPll UI 1717 pUll OZ 91 Sll pqnsOl SlUlpuodS lJ JO Jlllqlq uo SS WS P 01 UO lOW II plIY SIlq llSuno liUplllH

lDSS1U1S1a

SiJUDJf tfJDU1U1lliJJcl Y

NOIssnSIQ

lUlwnOOQ OJqndJO roUlP A3 Ol JllJO Ull l wqns P P ftpUll LZ 9Z tZ ll pqns Ol SlUlpuodslJ lql llpUllJOWlW liOluooo JO liOlIY lql 01 lUlnb lSqns JlA lMOH gUPlllq

AJll lUlP lUll JOJ JO AJlAO lS P JOJ lSlnOOJ II pl1Y SIlq AlJlld oN pl JdlJ ftpUll LZ 9Z tZ Sll pqns Ol SlUlpuodS lJ lql pUll OUI roAJlS PUllllllS qO qM01 Mill JO WnpUllJOWlW II pl1Y OSIIl YdMI WnpUllJOWlW AldlJ II plll wqnsIlSUno gUJll lH JO nlllJng S UO SS WWOJ lqL JlpJO lql 01 lSuodSlJ U lOIlJ

JO Sl IlPlJlllllUO l PPll snld llpUllJOWlW I JO IlllOlll pl1Y lAllq SlUlpuodS lM

ICT I o Tn n x 1 I o l o

tpayton
Typewritten Text
151
Page 166: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

W zz

6L611 JdVul UOllWt tSPU8 6L61 qOJ8V1 vI u mw 6 1 q llHU bgJ funq ipnq Ill POXg Ju81f1U JOJ purns 01

os PIP AUUW pUll IOJOUf

ooyd 1l1l CMoqll pUll IgloO lO8luqoJns l8UOPlppll W OlIJ WgW 11Inppu nl1ll lWxI0Bl1l adO pounouuB uoq llnOlMudp8q UlJql JQUJn SflUOW xli 6L61 I IImV 1M 1OOjp alllUu ofJd 6 11 pelnmaU adO JllUnoo SU 1Jochg wnQIOJlad JO

UOIl1lZ uuBlO oq1 JOAtJOyt ilOA lJod JOlJd pgqoUOJdd8 lOU nq uO 1npoJ JO uo 1dwnsaI uodn PU8 6L61 qOJIlW 01 8L61

Jq wOJJ uollonpwd pongo I dwoo sanddns no PllOlIlJO 01 P18WIYOJddll ponpGJd pUll OlqM U1Il1 8L61 JOlJ8d J l1J1 alp vI poJJnoo qOqM UBJI 11 uOlRloAaJ ql 01 polnQfJ1l8 AfJ8WfJd 0J1I SOIIlaJ Ul Ugp MPIJOM pe lJnoo SOI1lOIOUJ

JlIUWJS 1UOOJocI L 01 do poI8OJUI JOA MQN vI no mJJo tsooQlIl 6L61 I Jennc iupuawwoopo JKIl lUOW aoaql nn VI

lCI8uodtallBnPllPUJ Ire poMjw lqlnoJoql J AlIMOq SUII

UO wwOO U 00 SB plIllml IIUIIIOOOll mM pull Slu wntJlI JUDWJ1I JO W81l ql JlIJ UlIJ uB1I1U puodBal IInoJJlI q

pJ PISllOaq lOU IOM1 Et pUll Lt 9t tt 1I18J1OOPQnll U 1I1 uoclllOJ ql pull PU81 BeSq pnBJlIlI n UOPsB ll1 UI

jO J plO 1p q BlIJ IIOnSB ql Ol A II lIOJ 10U SJ MlIl jO wnpuUOw w POlY 1u nbosqnll IIVcIA lll1qllu ln ql oj

iP3oopqnll 0lI011 01111 potwp Oi1IIIlM uonU AlOlUI I l81S pll Un 11 OlUllOO1I1uB10U op 1pll1ijl VdA I OJ wnpuluow w Id 1I Ul P111PU 0lIJ1I lIq Et pUB Lt 9t tt IIpxpqRI Ul SlU puodBal lll

tuijl UIIplIOJq IRPUR lOU op pUll polUmJd tmJIB lOR aql 011U U1Jad JlI UOllUW3lUl JOj

spunoJB aijl pUB BUJPIOId aijluJ lsaJOlU IBllulIll1qnllll UO l1ad SJij U MOijllJOU AlOlUI pgsodOJd allJ POluwB qIlM uomtod aij l

ll1ijl lJlId U millS tL tOSI lI O9t OJRplOOJd pUll ao 18Jd JO 1IOIRlIlI UO 8S1WWOO al l JO ZL alRlI9

SJI JJIll lsllIl Ol ljqllUIlAllunAjplll lllll OSjll lJIl jlnJ JO llumdJjlOlS JO lIUptooq pJIlMJOJ aI slSIl lJlU

lSOO lSllIl JO Slll lll llIl llIljAlllll Ol SlJOlll JlA YlJOW SJI JJIll JO SOOUlJ lJUOOJO SJI JJIll Aq jOJlUOO JO UO llljnd ullw JO WJOJ AUIl ollllfqns lOU JlM SlSIl lJl

U IsllIl plllll djllJd 1IlIIM SlUlA I l WOUOOI pUll jlll l1od lU jOJlUOO J llIl

pUOAlq AjJIllj l lJlM SlSOO jlnJ U SlSIl lJlU llIl llllll PUllUOO SlUlpuods llIOO AJIS JO xIoos poonplJ pUll OO AJIS lUlnb IJJ SSlj Aljllldll l

pUll plxIs JO suoll mplJ DUD ll1Ul lIu pnjlUj slJnsll lw uOlllllllw lJlA lS lllll

SSIlIU pjnOM pUllllu JllIlIlllS KI PjnoM SlSU XIXIpldno YlJun J llIl lIlUOW lUO

UlllIl JllIlIlJ llIJIlIIlJns JlJjunq Il lsodw Ol SlIlUOW xlJlIll IlM Ol PIlII AllIl J 1IlllllnllJll AllJ o sllllpnq J llIl plpxllX l Apl nb SlSOO 8L61 uodn plsllq SlSU XIXI

JlJjunq 6L61 J llIl pllllfOJd Pllll 1IlIIM sl ulldwoo lIUjdd IIS Uo jlnJ ljqll

UIlAIl JO Ajddns llIl Uj uOlllnp lJ lUlJJn lUOO Il llOU SlUlpuods lJ SlSIl lJlU oo Jd

l lIlWIlJp ISllIl Ol UOlPPIl ul 6 Alllll lIlWIlJp plSIl lJlUj 6L61 JO JllJllnb lSJY

llIlllujJnp lnq ljqlllS plU IlWlJ jlnJ JlJjunq JO lSOO llIl 8L61 lnOllllnoJlIlllllIllIUllou Aq SUO l PUOO Alu llIJlw IJO OOUllSJX lllIl lnlIJIl AlllllU gSlUlpuodS llI

lA lllJ P S lIl

Ol puodslJ AllIlJlU llI plll wqns IlPUIlJOWlW llJ d III JlpiO UOllIlJxIOJ lljl lpldW Allullly ulI s E pUll ljqllrlslJoJ AjqllUOSlllJ lOU lJlM jOJlUOOJ llIl pUOAlq IJlM I pUll lS XI Allllnll1l SUO l PUOO Alu llIJlw I llIlllllIl

lIujAOJd JO ulpJnq llIl lAIlII PjnoM OOlloU SAllp 06 UlllIl SSlj uo sllIJIlII lJnsJlJjunq AJ lSnf Ol PIlJlUOS lUIlIIlJ lW WJoJlun llIl JO suo SJAOJd AlU llIJlW I

llIl lJjOAU Ol lIuptllS SJljJJIl l llllll plp AOJd UOllllll lSlAUl JO JlpJO l1I

f I1llf11

LJlPJO S UO SS wwollIl Aq plS IlJ slnsSJ

llIl UlpIlOJq AjnpUn Ol J1rlddll PjnoM 1IlIIM UO lUlAJ llU JOJ spunoJl lUlslJd lOU

soop lUlAJ llU Ol uOllllxl llIl pUll SII Jllllllfqns llIl Jlpun pllJodSUIlJl lJIl Sjll

jJllIlW MIlJ Sl JO lWOS llllll plll lllll SIlII VelM UOllUlAJ llU s VelMl Ol pllllf

qo SIlII sl lJlld JllllO llIl JO lUOU lsnllllSllJj lOp lIU U IlWlJ llIl Ol SIl pllUIlJlIKI mM UO lUlAJ llU JlA lMOH 9 pllUIlJlI KI lOU mM UOllUlAJ llU sllJj lOpqns

hoTnlCC JTATfATnrIAIII TI T l IfTI 71

tpayton
Typewritten Text
152
Page 167: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

RECOVERY OF CARRIERS INCREASED FUEL COSTS 153

Respondents further argue that the circumstances and events resulting in

increased fuel costs the Iranian revolution and accelerated OPECprice escala

tions could not have been reasonably foreseen by them as prudent business

men They note that the United States Government with its myriad agencieswhich specialize in predicting the course of political and economic events was

apparently surprised by the Iranian revolution and the subsequent dramatic

rise in the cost of crude oil

Finally respondents have submitted affidavits which are intended to demon

strate that the emergency conditions are significantly impeding their operations Among the impediments cited are the following I total unavailabilityof fuel in certain areas 2 shortages at some ports causing delays last minute

alternative arrangements deviations and disruption of normal service patterns3 the need to purchase supplemental fuel at extraordinary prices 4 reduc

tion in vessel speeds with a concomitant increase in transit time 5 severe

economic harm to the carriers 6 inability to carry out obligations under dual

rate contracts 7 removal of vessels from service 8 cancellation of plans to

introduce additional vessels into some trades and 9 fewer calls at certain

ports and in some cases complete elimination of service

Some parties further contend that bunker surcharges can and should be

imposed on less than 30 days notice or that such surcharges are not at all

subject to the Shipping Act provisions governing dual rate contracts II In

addition the contention has been raised that arbitration under the Uniform

Merchants Contract is the proper or preferred forum for resolving any shippercomplaints engendered by the bunker surcharges and not an investigation bythe Commission

Hearing Counsel agrees with respondents that 1 The bunker surchargesare the result of extraordinary conditions 2 the extraordinary conditions have

impeded obstructed or delayed the obligations of these carriers 3 the ex

traordinary conditions were outside or beyond the carriers control and 4 the

carriers using a high degree of diligence and sound business judgment could

not have foreseen or anticipated the conditions upon which the surcharges are

based In addition Hearing Counsel points out that out of the tens ofthousandsof dual rate contract signatories not one has served notice of cancellation

requested arbitration or alleged any breach of the contract as a result of the

imposition of the surchargesIWPA raises the only note of opposition to these bunker surcharges It

concedes that the increases in bunker fuel costs were beyond the control of the

carriers but nonetheless contends that these cost increases are not extraor

dinary conditions nor do they unduly impede obstruct or delay the confer

ences obligations under their dual rate contracts IWPA also argues that byapplying a high degree of diligence and sound business judgment the substan

tial increases in bunker fuel costs could have been anticipated without neces

sarily having had anticipated the specific cause of such increases Finally

II These arguments which have been previously raised were effectively disposed of in the Order See Order at 4

Page 168: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

154 FEDERAL MARITIME COMMISSION

IWPA states that a bunker surcharge would increase trigger prices for

imported carbon steel wire rods contrary to its and the nation s interests 12

Sea Land submitted a memorandum in reply to IWP A stating 1 that theinterest of the intervenor in the proceeding is impossible to ascertain and 2that the argument concerning trigger prices is irrelevant and raises matters

beyond the Commission s authoritySection 14b of the Shipping Act requires dual rate contracts to

pI provides that whenever a tariff rate for the carriage of goods under the contract becomeseffective insofar as it is under the control of the carrier or conference of carriers it shall not beincreased before a reasonable period but in no case less than ninety days

The statute clearly contemplates circumstances in which rate increases couldbecome effective on less than ninety days notice if they are not under thecontrol of the carrier or conference In The Dual Rate Cases 8 F M C 16

1964 the Commission affirmed this position and also prescribed specific con

tract clauses which would permit rate increases on less than normal noticeunder certain abnormal conditions These contract clauses are presently em

bodied in the Uniform Merchant s Contract as paragraphs 14 a 14 b and14 c 46 C F R 538l0 Theflrst two apply where war or other governmental actions eg embargoes or blockades interfere with a carriers serviceand permit suspension of the contract Article 14 a or rate increases on not

less than 15 days notice to shippers Article 14 b The latter clause whichapplies to the circumstances of this case provides14 c In the event of any extraordinary conditions not enumerated in Article 14 a whichconditions may unduly impede obstruct or delay the obligations of the Carner or Carriers theCarrier or Carriers may increase any rate or rates affected thereby in order to meet such con

ditions Provided however That nothing in this Article shall be construed to limit the provisionsof section I 8 b of the Shipping Act 19 I 6 as amended in regard to the notice provisions of rate

changesThe criteria necessary to invoke the extraordinary conditions clause of the

Uniform Merchant s Contract were set forth in Surcharg at US Atlantic andGulfPorts 10 F M C 13 1966 1 the condition must be outside or beyondthe carrier s control 2 the condition must impede or delay the carrier s

service and 3 there must be an emergency an abnormal condition or an

extraordinary circumstance The nature of the condition ie whether it isnormal or abnormal or emergency or extraordinary is determined in largepart by its foreseeability whether the carriers by exercising a high degreeof diligence could have anticipated the condition

Based upon the complete record in this proceeding the Commission findsthat these bunker surcharges are the result of extraordinary conditions whichwere beyond the carriers control and which were not foreseeable using a highdegree of diligence Certainly the Iranian situation the OPEC pricing decisions the dramatic rise in fuel oil prices and the severe reduction in supply are

U Steel wire rod are lubject to the triaacr price mechanism adopted by the Department of Treasury in connection with ita

implementation of the Anti Dumpina Act of 1921 19 US C 11160 173 Thils Item tltablilhes triuer prices which are

bued on the full COItl of production and which are then Uled as a ba i for monitorin teol imports Into the United States thetrlacr price mccl1anlsm was upheld in Ihwis Walt Corp v Blumenthal 460 F Supp 283 DDC 1978

IlSection 18 b2 requires thirty days notice of rate incrcuc

Page 169: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

S FRANCIS C HURNEY

Secretary

RECOVERY OF CARRIERS INCREASED FUEL COSTS 155

abnormal conditions which were not subject to any control by the carriers Nor

do these conditions appear to have been reasonably foreseeable by anyonewhether a governmental entity or a commercial carrier There is no evidence

that the carriers in this proceeding possessed sufficient information to enable

them to anticipate these conditions Moreover the price increases occurred

suddenly and not slowly and steadily over a significant portion of time as did

the increases in Atlantic and GulfWest Coast ofSouth America Conference14 F M C 166 1970

The Commission also finds that these extraordinary conditions would undulyimpede obstruct or delay the obligations of these carriers The primary impediments which these carriers have experienced are severe financial losses delaysand disruption of service caused by cost and unavilability of bunker fuel These

occurrences would indeed impair the carriers ability to carry out their obli

gations under the Uniform Merchant s Contract particularly that of main

taining a steamship service which shall so far as concerns frequency ofsailingsand carrying capacity of vessels be adequate to meet the merchant s requirements Article 2

For the foregoing reasons we find the bunker surcharges instituted by thesecarriers and conferences of carriers to be lawful under section l4b of the

Shipping ActTHEREFORE IT IS ORDERED That the Petition of the Independent

Wire Producers Association for Leave to Intervene is granted to the extent

indicated above andIT IS FURTHER ORDERED That the Motions to Dismiss filed by the

Bureau of Hearing Counsel and the Java New York Rate Agreement are

hereby granted and therefore the Mediterranean U S A Great Lakes Westbound Freight Conference the U S Great Lakes South East Mrica Rate

Agreement the India Pakistan Bangladesh Ceylon Burma Outward

Freight Conference and the Java New York Rate Agreement are dismissedfrom this proceeding and

IT IS FURTHER ORDERED That no violations of the Shipping Act

having been found this proceeding is hereby discontinued

Page 170: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

IoCKET OS 79 21 22 23 24 25 26 31 3233 34 35 37 38 39 40 41

FAILURE TO INCLUDE PROVISIONSFOR ADEQUATE SELF POLICING AS REQUIRED

BY GENERAL ORDER 7

Conference and rate making agreements which failed to incllde provisions for adequate selfpolicing as required by General Order 7 are found to be inadequately policed and arc

therefore disapprovedCharles F Warren and George A Quadrino for Deli New York Rate Agreement Straits New

York Conference Philippines North America Conference Java Pacific Rate AgreementJava New York Rate Agreement Deli Pacific Rate Agreement Japan Puerto RicoVirgin Islands Freight Conference Atlantic Gulf Indonesia Conference Thailand U SAtlantic Gulf Indonesia Conference Atlantic Gulf Singapore Malaya ThailandConference and Thailand Pacific Freight Conference

David C Nolan for Hawaii Europe Rate AgreementStanley O Sher for U S Atlantic Gulf Red Sea Gulf of Aden Rate AgreementHuberr Burstein for International Movers Rate AgreementMartin F MeAlwee Paul J Kaller and John Robert Ewers for Bureau of Hearing Counsel

BY THE COMMISSIO RichardJ Daschbach Chairman ThomasF Moakley Vice Chairman James V DayDay and Leslie Kanuk Commissioners

REPORT A D ORDER1

October 17 1979

During April of 1979 the Commission issued sixteen Orders to Show Causein the abovereferenced proceedings 2 These Orders stated that because the

subject agreements failed to meet the minimum requirements for adequate

I These proceedings involve substantially the same issues and are accordingly consolidated for decision pursuant to Rule 148oftho Commission Rules of Practice and Procedure 46 CF R 1502 148

1 Respondents include the Collowing ratemaking sroups and their individual members

a 79 21 Agrcement No 1190 Deli New York Rate Agreementb 79 22 Asrcement No 6010 Straits New York Conference

c 79 23 Agreement No 5600 Philippines North America Conferenced 79 24 Agreement No 191 Java Pacific Rate Agreemente 79 2S Agreement No 90 Java New York Rate Agreement

tpayton
Typewritten Text
156
Page 171: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

DISCUSSION

FAILURE TO INCLUDE PROVISIONS FOR ADEQUATE SELF POLICING 157

self policing as set forth in General Order 7 3 they were presumed not to meet

the requirement of section 15 of the Shipping Act 1916 that obligations under

such agreements be adequately policed Respondents were thus ordered to

show cause why their agreements should not be disapproved for failure to be

adequately policed The proceedings were limited to the submission ofaffidavits

of fact and memoranda of lawThree Respondents failed to file any affidavits of fact or memoranda of law

or any other response to the Orders to Show Cause 5 One Respondent re

quested cancellation of its rate agreement6 Another filed a Petition for Ex

emption from the Self Policing Provisions Set Forth in General Order 7 as its

sole response to the Order 7 Finally a group of eleven Respondents all represented by the same counsel filed identical Responses to the Order to Show

Cause s The Commission s Bureau of Hearing Counsel which had been made

a party to these proceedings filed reply memoranda in all dockets The eleven

Respondents filed identical responses to Hearing Counsels replies

Background

Section 15 of the Shipping Act 1916 requires the disapproval of any agree

ment which must be filed with the Commission o n a finding of inadequatepolicing of the obligations under it 9 To effectuate this provision the

Commission adopted rules governing self policing of Commission approvedagreements which prescribed minimum standards for judging the adequacy of

self policing activities 46 C F R 528 0 a Because prior self policingsystems had generally proven inadequate these rules impose as their central

requirement the establishment of an independent self policing body with broad

investigatory powers and detailed reporting requirements See 46 CF R

528 3 and 528 5

f 79 26 Agreement No 192 Deli Pacific Rate Agreement

g 79 JI Agrcement No 8190 Japan Puerto Rico Virgin Islands Freight Conferenceh 79 32 Agreement No 8080 Atlantic Gulf Indonesia Conference

i 79 33 Agreement No 8100 Thailand US Atlantic Gulf Conference

j 79 34 Agreemcnt No 8240 Atlantic GulfjSingalXlre Malaya Thailand Conference

k 79 35 Agreement No 8410 Hawaii Europe Rate AgreementI 79 37 Agreement No 8530 International Movers Rate Agreementm 79 38 Agreement No 8595 Great Lakes Japan Rate Agreementn 79 39 Agrcement No 8670 Japan Great Lakes Memorandum

o 79 40 Agrcement No 9474 Thailand Pacific Freight Conference and

p 79 41 Agreement No 10025 US Atlantic Gulf Red Sea Gulf of Aden Rate Agreement

J General Order 7 which contains self policing requirements for section 15 agreements was published as a final rule on

September 14 1978 and became effective January I 1979 See 46 CFR Part 528 General Order 7 Docket No 73 64 Report

and Order dated April 26 1978 as amended by Order on Reconsideration served September 14 1978

46 VS C 814

SDocket Nos 79 38 39 41

6 Docket No 79 35

7 Docket No 79 37 In addition several companies which had been named as respondents in the Order to Show Cause

subsequently infonned the Secretary Federal Maritime Commission that they no longer were members of the International

Movers Rate Agreement

Oooket No 79 21 22 23 24 25 26 31 32 33 34 40

946 Vs C 8 4

Page 172: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

158 FEDERAL MARITIME COMMISSION

The Commission s final order in thisrulemaking proceeding has been appealed to the U S Court of Appeals for the District ofColumbia Circuit 10 One ofthe major issues raised is whether the final self policing rules exceed theCommission s statutory authority Concurrently on December 8 1978 memo

bers of the Trans Pacific Freight Conference of Japan Korea and 26 other

agreements petitioned the Commission to stay the January I 1979 effectivedate of these revised self policing regulations The Commission denied the

petition on February 16 1979 Subsequent to the issuance of the show cause

orders and over six months after the effective date of the rules Trans Pacificet al filed an Application for Stay of the Commission s September 14 1979Order with the Court of Appeals In a per curium opinion filed July 16 1979the court denied the application for stay

Proceedings

With respect to those respondents who failed to file any responses to theOrders to Show Cause Docket Nos 79 38 39 41 Hearing Counsel recom

mends thateach agreement be disapproved and thatdisapproval become effective 45days from the date of this Order The Commission would normally adoptHearing Counsels dispositional recommendation However events which oc

curred subsequent to the filing of Hearing Counsel s reply dictate a differentresult The Commission has recently received notice that the Japan GreatLakes Memorandum Agreement Docket No 79 39 and the Great Lakes

Japan Rate Agreement Docket No 79 38 have been cancelled The Commission has also received notice that the Us Atlantic Gulf Red SeaGulf of Aden Rate Agreement Docket No 79 41 has been amended to

comply with the requirements ofGeneral Order 7 Under these circumstancesthe Commission will dismiss the proceedings against these agreements

I I

The three members of the Hawaii Europe Rate Agreement DocketNo 79 35 have requested that their agreement be cancelled They havefurther requested that individual lines be granted time to prepare their own

tariffs before that cancellation becomes effective Hearing Counsel concurs inthese requests The Commission will accordingly disapprove this agreementeffective 60 days from the date of this Order

In lieu of filing affidavits of fact or memoranda of law in response to theOrder to Show Cause the International Movers Rate Agreement DocketNo 79 37 submitted an affidavit petitioning for an exemption from the neu

tral body requirement of General Order 7 Hearing Counsel avers that therepresentations made in the affidavit if true make a credible case fordeferring consideration of an order of disapproval until the Commission determines the merits of the requested exemptions However this petition for ex

emption is non responsive to the Commission s Order to Show Cause and must

10 Trans Pacific Freight COIiferttWe ofJapanjKOrta et ai Federal MQI itiml Commisslon mutthe Untied Statesof AmericaDC Cir No 78 2172 Sea LandService Inc II FtderoJ Maritime Comml3sion and the United States of Artwrlca DCCirNo 79 1062

II The Motion to OismillProceedinaon the Ground of Mootncu filed by the US Atlantic Gulf Red Sea GulfofAdenRate Aarcemcnt will allO be dismiued al moot

Page 173: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FAILURE TO INCLUDE PROVISIONS FOR ADEQUATE SELF POLICING 159

be denied though we will do so without prejudice 12 The Commission will

consequently disapprove Agreement No 8530 but will again defer the effectivedate of disapproval for 60 days

In their responses to the Orders to Show Cause the eleven remaining re

spondents contend that they cannot possibly overcome the presumption of

inadequate policing raised by the Orders except by full and complete compliance with revised General Order 7 They also maintain that because the

question of the validityof these regulations is currently on appeal the Commis

sion should not engage in proceedings which collaterally interfere with the

judicial process Hearing Counsel notes that these agreements are not in fact

policed by a neutral body and are therefore presumed to be inadequatelypoliced Hearing Counsel also claims that respondents err in arguing that these

show cause proceedings constitute collateral interferencewith the judicial process In order to allow respondents to comply with General Order 7 or to permitindividual member lines to file tariffs Hearing Counsel recommends that

disapproval take effect 60 days from the Commission s final order

The Commission has recently received notice that two of these eleven agreements have complied with the requirements of General Order 7 The pro

ceedings against the Thailand U S Atlantic Gulf Conference Docket

No 79 33 and the Thailand Pacific Freight Conference Docket No 79 40

will therefore be dismissed

As to the remaining nine respondents they have offered little support for

their contention that the Commission should not resolve these proceedingsbecause the validity of the self policing rules is presently on appeal Their onlylegal authority 28 U S c S 2342 is inapposite it merely states that the

Court of Appeals has exclusive jurisdiction to determine the validity of final

agency orders IJ Moreover the Court of Appeals has denied the petitionersapplication for a stay of the self policing rules These cases can therefore be

resolved without collaterally interfering with the judicial processThese respondents readily admit that they have submitted no affidavits of

fact or memoranda of law which would demonstrate that their agreements are

adequately policed under the requirements of General Order 7 and section 15of the Shipping Act As a result the Commission has no choice but to proceedto disapprove each of these agreements However the Commission will deferthe effective date ofdisapproval for 60 days from the date of thisOrder to allow

members of these agreements to file individual tariffs

THEREFORE IT IS ORDERED That the proceedings against Agreements Nos 8595 Great Lakes Japan Rate Agreement 8670 Japan Great

Lakes Memorandum 10025 U S Atlantic Gulf Red Sea Gulf ofAden

Rate Agreement 8100 Thailand U S Atlantic Gulf Conference and

9474 Thailand Pacific Freight Conference are dismissed and

11 The Commission has determined that the filing of a petition for exemption does not relieve a conference or rate fixing bodyfrom the independent neutral body requirements of section 528 3 b of General Order 7 during the pendency of the petitionStatement of Federal Maritime Commission released December 15 1978

IJBecause 28 USc f2349 b provides that t hc filingofthe petition to review does not ofitselfstay orsuspend the operationof the order of the agency the rules would normally remain in effect during the process of appellate review

Page 174: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

160 FEDERAL MARITIME COMMISSION

1IT IS FURTHER ORDERED That the U S Atlantic and Gulf Red Sea

Gulf of Aden Rate Agreement s Motion to Dismiss Proceedings on theGround of Mootness is dismissed and

IT IS FURTHER ORDERED That the Petition for Exemption from theSelf Policing Provisions set Forth in General Order 7 filed by the InternationalMovers Rate Agreement is denied without prejudice and

IT IS FURTHER ORDERED That Agreements Nos 7190 Deli NewYork Rate Agreement 6010 Straits New York Conference 5600Philippines North America Conference 191 Java Pacific Rate Agree

ment 90 Java New York Rate Agreement 192 Deli Pacific Rate Agreement 8190 Japan Puerto Rico Virgin Islands Freight Conference 8080Atlantic Gulf Indonesia Conference 8240 Atlantic Gulf Singapore

Malaya Thailand Conference 8410 Hawaii Europe Rate Agreementand 8530 International Movers Rate Agreement are hereby disapproved and

IT IS FURTHER ORDERED That disapproval of these agreements shallbecome effective 60 days from the date of this Order and

IT IS FURTHER ORDERED That these proceedings are discontinued

S FRANCIS C HURNEYSecretary

Page 175: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

TITLE 46 SHIPPING

CHAPTER IV FEDERAL MARITIME COMMISSION

SUBCHAPTER A GENERAL PROVISIONS

GENERAL ORDER No 16 AMDT 31 DOCKET No 79 49

PART 502 RuLES OF PRACTICE AND PROCEDURE

October 17 1979

ACTION

SUMMARY

Final Rule

This amends the rule governing intervention in Commission proceedings to I specify applicable standards forintervention and 2 allow for limitation of intervenors

participation in Commission proceedings Rule 24 of theFederal Rules of Civil Procedure has been used as a modelfor the Commission rule

EFFECTIVE DATE October 23 1979

SUPPLEMENTAL INFORMATIONThis proceeding was instituted by Notice of Proposed Rulemaking 44 Fed

Reg 28694 28696 to amend Rule 72 of the Commission s Rules of Practiceand Procedure 46 C F R 502 72 to conform to the intervention standardsin Rule 24 of the Federal Rules of Practice and Procedure to the extent

appropriate in Commission proceedingsAs proposed to be amended Rule 72 wouldI incorporate the requirements contained in the existing Commission rule

as to the form and procedure for submitting petitions for intervention

Paragraph a

2 establish the standards under which petitions for intervention would beconsidered This provision would require petitioners to indicate whether theyseek intervention as a matter of right or in the discretion of the Commissionand the extent of participation sought Intervention as a matter of right would

require a showing of either specific statutory authority or an interest relatingto the matter which is the subject of the proceeding and that the proceedingmay materially affect that interest and that such interest is not adequatelyrepresented by existing parties to the proceeding

mharris
Typewritten Text
161
Page 176: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

162 FEDERAL MARITIME COMMISSION

Permissive intervention requires a showing that the petitioner s interest in

volves a common issue of law or fact with the matter being litigated its

intervention will not unduly broaden or delay the proceeding duplicate the

positions of or prejudice existing parties and its participation will contribute to

the proceeding in some significant way The timeliness of the petition wouldalso be considered in determining whether intervention should be grantedParagraph b

3 provide the mechanism for limited intervention i e the presentation of

evidence on specific factual issues and or the submission of amicus curiae

briefs on selected legal issues and would allow for continuing control over such

participation Paragraph c

4 incorporate the existing Commission rule on the limitation of discoveryright for later intervenors Paragraph d

5 provide that discovery may be limited in the same manner as petitionersparticipation Paragraph e

6 allow for Commission review of intervention rulings made by the pre

siding officer Paragraph fComments to the proposed rule were received from nine parties in six

submissions Commentators consist of six conferences one shipper one shipowners association and one government agency

The Pacific Westbound Conference the PacificStraits Conference and the

Pacific Indonesian Conference suggest that those seeking permissive inter

vention be allowed to intervene even if their position may be duplicative of

another party It is allegedly difficult to have a common question of law or fact

which is not duplicative of another party s These commentators further pointout that it may also not be possible to determine at the very early stages of a

proceeding if a given party s position is in fact duplicativeThe Council of European Japanese National Shipowners Association

proposes three areas of clarification 1 that the rule expressly not be made

applicable to rulemaking proceedings 2 that it not preclude the intervention

of trade associations and 3 that the prohibition against a permissive inter

vention prejudicing the rights of an existing party be made applicable only to

the adjudication of the rights of original partiesThe Japan Korea Atlantic and Gulf Freight Conference and Trans Pacific

Freight Conference of Japan Korea suggest that 1 either the requirementthat the petition be served on all parties or the requirement that the Commission be provided copies for distribution be deleted and 2 the rule be amendedto allow for replies to appeals to the Commission on intervention rulings

Outboard Marine Corporation is of the opinion that the participation of

Hearing Counsel as a party representing the public interest should not

preclude the intervention of appropriate private interests even though suchintervention may arguably be duplicative To this end it is suggested that the

term party as used in the rule be defined to expressly exclude HearingCounsel

Interamerican Freight Conference takes the position that I discoveryprocedures not be available to intervenors filing only amicus briefs and re

stricted to those factual issues to which the participation was limited 2 the

Page 177: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

RULES OF PRACTICE AND PROCEDURE 163

provision allowing for a statutory right of intervention be deleted as no such

statute exists 3 the requirement that an intervenor show that its interests willnot be adequately represented by existing parties be deleted as such a provisionwould require adverse representations as to the abilities ofcounsel for existingparties in situations where only legal issues are being argued and 4 the rulebe amended to make clear whether copies of the petition for intervention are

to be served on existing parties by the party seeking intervention or the Commission with the latter alternative being urged

The Department ofJustice 001 views the proposed revised rule as makingtwo fundamental changes to the existing rule I establishing categories ofintervenor petitions with different requisite showings and 2 limiting and

controlling the extent of intervenor participation No objection is made to theestablishment of categories but limitations on the extent of participation of

intervening parties is objected to as clearly inconsistent with court precedentas well as practice in other regulatory agencies

Each of the specific proposals advanced by the commentators will now bediscussed

1 Duplication Of Positions By Permissive Intervenors Should Not BeProhibited

The requirement that the petitioner s position not be duplicative of another

party is not as stringent as it is apparently perceived Clearly one can have a

common issue of fact or law at stake but take a different position on that issueEven if the position taken is similar this does not necessarily mean it is duplicative Moreover even when a position taken on a common issue is close to

being duplicative ofanother party if the petitioner can show that it will makea significant contribution to the proceeding the Commission may in its discretion nevertheless grant intervention No amendment to the rule appears tobe required under the circumstances

2 The Proposed Rule Should Not Apply To Rulemaking Proceedings

The proposed rule would apply to formal rulemaking proceedings 1 Such

proceedings involve hearings almost identical in nature to adjudicatory pro

ceedings Therefore the reasons for controlling intervention in adjudicatoryproceedings applies with equal force to formal rulemaking proceedings Ac

cordingly the rule will not be narrowed in scope as suggested by this proposal

3 Associations Should Be Allowed To Intervene

This proposal is already accommodated by the Commission s Rules ofPractice and Procedure Rule 41 46 C F R 50241 permits intervention by

146 cFR 502 53 Rule 53 governs participation in rulemaking and makes applicable the formal hearing requirements 10

rules required by statute 10 be made on the record after opportunity for ahearing As to those types of formal rulemakings Rule

53 expressly provides that n those proceedings in which respondents are named interested parties who wish to participate therein

shall file a petition to intervene in accordance with the provisions of section 502 72 Rule 72

Page 178: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

164 FEDERAL MARITIME COMMISSION

associations 2 Whether the interest of an association is one which will in any

given proceeding warrant intervention in the discretion of the Commission is

a matter that can only be determined on an ad hoc basis and is not subject to

special treatment in the rule

4 Prejudice The Rights Of An Existing Party Should Be Changed To

Prejudice The Adjudication Of The Rights OfOriginal Parties In Para

graph b 2 ii Of The Rule

Because there appears to be some uncertainty as to what rights ofexistingparties this provision was intended to protect the language of paragraphb 2 iiwill be revised to more accurately reflect its true intent i e that of

ofprotecting the rights of existing parties to a fair and speedy adjudication ofthe controversy However the prohibition against prejudice should extend to

the adjudicative rights of prior intervenors as well as those of original partiesAccordingly paragraph b 2 ii willonly be modified by the insertion ofthe

words the adjudication or after the word prejudice in paragraphb 2 ii of the rule

5 The Commission Should Serve Copies ofPetitions To Intervene

While service copies of the petition for intervention required by the rule are

for the existing parties to the proceeding the 15 copies required to be filed with

the petition are for the internal use of the Commission The Commission willnot undertake to serve copies of petitions on existing parties Because the

language ofparagraph a I ofthe rule appears to be ambiguous on this pointit will be amended to make clear that a petitioner must I serve all the

existing parties to the proceeding with copies of its petition and 2 file an

additional 15 topies of the petition with the Commission Secretary

6 The Rule Should Provide For Replies To Appeals From Intervention

Rulings

Replies to appeals to the Commission from intervention determinations bythe presiding officer are provided for by Rule 74 a 46 C F R 502 74 a VNo change in the rule is required in response to this comment

Furthermore while the Commission originally contemplated broadening thescope of review of such determinations to allow non petitioner appeals and sua

sponte Commission review upon reflection it has determined that such ex

panded procedures may in fact result in delaying proceedings contrary to the

underlying purpose of the rule The existing appeal mechanism contained in

Rule 227 46 C F R 502 227 appears to be adequate for purposes of this

rule Accordingly paragraph f of the proposed rule will be deleted

2 Rule 41 definea the term party to specifically include 1111 alia an al8OCiation

Rule 74 providot in pertinent part aJoyparty may file a reply to any petition permitted under the rules in this partwithin fifteen OS daya afcer date of scrvicc thereof

Page 179: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

RULES OF PRACTICE AND PROCEDURE 165

7 Hearing Counsel Should Not Be Included In The Term Party

Irrespective of Hearing Counsels participation private interests with a general interest in a proceeding will not necessarily be precluded from interveningNormally a general public interest position will not displace a specific privateinterest As has been discussed a duplicative position should not be confusedwith a similar position and in close cases a showing of a potential significantcontribution should militate in favor of the grant of intervention In complaintproceedings Hearing Counsel should be treated as any other petitioner seekingintervention Therefore under either situation Hearing Counsel should beincluded within the meaning of the term party as used in the rule No changein the language of the proposed rule is necessary in this regard

8 Discovery Should Be Restricted For Intervenors

This is a matter that can be addressed under paragraph c of the proposedrule by the presiding officer In order to protect the due process rights ofintervenors the extent to which such discovery procedures will be available tothem is a matter best left to the sound discretion of the presiding officer underthe facts of the particular proceeding This is not a matter that can readily bereduced to a rule of general applicability

9 A Statutory Right Of Intervention In FMC Proceedings Does Not ExistAnd Should Be Deleted From The Rule

A statutory right of intervention is provided for in the Federal Rule and was

therefore incorporated into the proposed rule However because the Commission is itself not aware of any provision of law granting a right of interventionin its proceedings nor has any such provision been cited by a commentingparty the phrase in the absence of an absolute statutory right of interventionwill be deleted from paragraph b I in the final rule

10 The Adequacy Of Representation Of A Petitioner s Interests By ExistingParties Should Not Be An Issue

The critical issue under paragraph b I iii is whether the existing partyhas such similar interest position perspective and resources that its participation in the proceeding will necessarily include anything that the petitioneris able to offer The Commission will not presume that counsel for existingparties in Commission proceedings are incompetent nor will it make rules basedon that presumption The requirement in paragraph b I iii is a fundamental aspect of the rule and will be retained as proposed

II The Participation Of Intervenors May Not Be Limited

The objection to one of the fundamental aspects of the proposed rule thatof limiting the participation of intervenors in proceedings to the extent neces

sary to protect their interests is rejected The Commission however has no

Page 180: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

166 FEDERAL MARITIME COMMISSION

intention ofdepriving any petitioner of its due process rights Nor does the rule

prevent a petitioner from participating in a proceeding if it has somethingworthwhile to offer

In Pepsi Co Inc v F T C 472 F 2d 179 2d Cir 1972 cert den 414U S

876 1973 the court found the intervention standards of the Federal Rules of

Civil Procedure applicable to intervention in agency proceedings That decision

clearly contemplates limitations on the participation of intervenors in agency

proceedings beyond that normally utilized in formal court proceedings472 F 2d at 184 The Commission finds no legal impediment to such procedures and will not reverse its policy determinations as to this fU1damental

aspect of the proposed rule

Therefore pursuant to section 4 of the Administrative Procedure Act

5 US c i553 and section 43 of the Shipping Act 1916 46 U S C

i841 a section 502 72 of Title 46 Code of Federal Regulations is amendedas follows

Section 502 72 Petition for Interventiona A petition for leave to intervene may be filed in any proceeding and shall

be served on existing parties by the petitioner pursuant to section 502 114 An

additional fifteen 15 copies ofthe petition shall be filed with the Secretary for

the use of the Commission Upon request the Commission will furnish a service

list to any member of the public pursuant to Part 503 of these rules The

petition shall set forth the grounds for the proposed intervention and the

interest and position of the petitioner in the proceeding and shall comply with

the other applicable provisions of Subpart H of this part and if affirmativerelief is sought the basis for such relief Such petition shall also indicate the

nature and extent of the participation sought e g the use of discoverypresentation of evidence and examination of witnesses

b 1 Petitions for intervention as a matter of right will only be grantedupon a clear and convincing showing that

i the petitioner has a substantial interest relating to the matter

which is the subject of the proceeding warranting interventionand

ii the proceeding may as a practical matter materially affect the

petitioner s interest andHi the interest is not adequately represented by existing parties to

the proceeding2 Petitions for intervention as a matter of Commission discretion may

be granted only upon a showing that

i a common issue of law or fact exists between the petitioner s

interests and the subject matter of the proceeding and

ii petitioner s intervention will not unduly delay or broaden the

scope ofthe proceeding prejudice the adjudication ofthe rightsof or be duplicative of positions of any existing party and

Hi the petitioner s participation may reasonably be expected to

assist in the development of a sound record

Page 181: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

RULES OF PRACTICE AND PROCEDURE 167

3 The timeliness ofthe petition will also be considered in determiningwhether a petition will be granted under paragraphs b I or 2of this section Iffiled after hearings have been closed a petition willnot ordinarily be granted

c In the interests of I restricting irrelevant duplicative or repetitivediscovery evidence or arguments 2 having common interests represented bya spokesperson and 3 retaining authority to determine priorities and controlthe course of the proceeding the presiding officer in hisdiscretion may imposereasonable limitations on an intervenor s participation eg the filing ofamicuscuriae briefs presentation of evidence on selected factual issues or oral argument on some or all of the issues

d Absent good cause shown any intervenor desiring to utilize the procedures provided by Subpart Lmust commence doing so no later than 15 daysafter its petition for leave to intervene has been granted Ifthe petition is filedlater than 30 days after the date of publication in the Federal Register of theCommission s Order instituting the proceeding or notice of complaint filed

petitioner will be deemed to have waived its right to utilize such proceduresunless good cause is shown for the failure to file the petition within the 3D dayperiod The use of Subpart L procedures by an intervenor whose petition was

filed beyond the 3D day period described above will in no event be allowed ifin the opinion of the presiding officer such use will result in delaying the

proceeding undulye Ifintervention is granted before or at a prehearing conference convened

for the purpose of considering matters relating to discovery the intervenor s

discovery matters may also be considered at that time and may be limitedunder the provisions of paragraph c of this section

By the Commission

S FRANCIS C HURNEY

Secretary

Page 182: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

SPECIAL DoCKET No 647

APPLICATION OF AMERICAN PRESIDENT LINES LTDFOR THE BENEFIT OF BEVERLY COAT HANGER COMPANY

REPORT AND ORDERPARTIALLY ADOPTING INITIAL DECISION

October 22 1979

BY THE COMMISSION Richard J Daschbach Chairman Thomas

F Moakley Vice Chairman James V

Day Leslie L Kanuk Commissioners

This proceeding was initiated pursuant to section l8 b 3 of the ShippingAct 1916 upon the application of American President Lines Ltd for permission to refund a portion of freight charges to Beverly Coat Hanger Company

The Initial Decision of the Presiding Officer conditioned approval of the

application upon the submission of evidence to the Commission showing the

applicable tariff rates and dates ofcertain shipments for which the refund was

requestedThe Commission determined to review the Initial Decision in view of the fact

that a complete evidentiary record was not developed The proper forum for

receiving evidence in this proceeding was the administrative hearing before the

Presiding Officer Evidence upon which findings of fact can be made on these

issues is indispensable to an ultimate decision on the application Althoughexisting procedures do not authorize a presiding officer to direct the submission

of evidence to the Commission the Commission has determined to review the

supplemental evidence submitted in this case in order to avoid the unnecessary

delay that would result from a remandThe record establishes that the applicable tariff rate on filewith the Commis

sion on the dates of the shipments in question was 7100 per cubic meter Allthe sailing dates to which this application applies were within 180 days of the

date of the application as required under the statute of limitations imposed bysection l8 b 3 of the Shipping Act 1916

All other findings in the Initial Decision are correct and are herein adoptedby the Commission

mharris
Typewritten Text
168
Page 183: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

S FRANCIS C HURNEY

Secretary

APPLICATION OF AMERICAN PRESIDENT LINES LTD 169

THEREFORE IT IS ORDERED That the Initial Decision served in this

proceeding July 16 1979 is adopted insofar as it finds that American PresidentLines Ltd is granted permission to refund 1 355 58 to Beverly Coat HangerCompany and

IT IS FURTHER ORDERED That American President Lines Ltd

publish immediatiy in the Hong Kong Taiwan Freight Tariff No 5 EM C

No 67 at page 110 the following notice

NOTICE OF REFUND AUTHORIZATION

Pursuant to authority granted by the Federal Maritime Commission inSpecial Docket No 647the tariff rate for clothes hangers all kinds is 62 00 per cubic meter effective December 3 1978

and continuing through January 16 1979 inclusive

Page 184: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARmME COMMISSION

SPECIAL DoCKET No 647

APPLICATION OF AMERICAN PRESIDENT LINES LTD

FOR THE BENEFIT OF BEVERLY COAT HANGER COMPANyl

Partially Adopted October 22 1979

Request granted for permission to refund 1 355 58 portion ofaggregate of 10 694 02 238 36Destination Container Service Charges freight charges actually colIected provided APL

supplies the Commission within 30 days with certain proofs Failure to supply proofs will

result in denial of this request for permission to refund

INITIAL DECISION2 OF WILLIAM BEASLEY HARRIS

ADMINISTRATIVE LAW JUDGE

The application in this special docket proceeding was received in the Com

mission June I 1979 The commodity involved is Wooden Clothes HangersThe commodity was shipped in five 5 shipments under the following American President Lines Ltd APL Bills of Lading from Kaohsuing via Keelungto San Francisco

Billof Billof Name ofVessel SailingLading Number Lading Dale and Voyage No Dale Measurement

252925 12 3 78 Pres Pierce V 42 12 17 78 5132 M3253107 12 11 78 Pres Jefferson V 49 12 12 78 37 59 M3253108 12 11 78 Pres Jefferson V 49 12 12 78 15 87 M3253295 12 17 78 Pres Madison V 47 12 17 78 10 17 M3253424 12 25 78 Pres Johnson V 42 12 26 78 35 67 M3

Total 150 62 M3

I This captionmoform to the revised format Under date of June 5 1979 the Secretary of the Commiuion ent the followingletter to counsel for American PreaideDt Linea

Receipt isacknowJedaed ofyour recent apodal docket appUcation on behalfof American President Linea This application dOCllnot follow tho reviled fonnat required by tho Commision l recent amendment to itlRules ofPractice Inasmuch 81 the limitation

period for filing has nearly puaed this application nanetheleu will be acccptcd for proctslIin Forwarded herewith isa copy of

the Commiuion s roccnt rule revision PICllIC consult thia rule and supplomont your application aocordinaly to 888urc that all

ncccuary information iI before the Commiuion

Proccllina of thil application is beinl done on lubmisaona to date

I This decision will become the dcciaon ofthe Commilaion in the absence of review thereof by the CommiuiOl1 Rule 227 Rulesof Practice and Procedure 46 CF R 1502 227

mharris
Typewritten Text
170
Page 185: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPLICATION OF AMERICAN PRESIDENT LINES LTD 171

The application is filed timely as to all shipments having been receivedwithin 180 days of the sailing date of each Rule 92 a 3 of Commission sRules of Practice and Procedure 46 C F R 502 92 a 3

The Beverly Coat Hanger Company concurs in this application and certifiesthat freight charges of 1 355 58 on the shipments involved herein were paidand borne as such by Beverly Coat Hanger Co and no other It is the amountof 1 355 58 that APL seeks permission to refund APL in the applicationstates it actually collected from Beverly Coat Hanger Company 10 694 02

238 36 Destination Container Service Charges a total of 10 932 38 thatthe rate applicable at time ofshipment was 71 00 per cubic meter as per APLHong Kong Taiwan Freight Tariff No 5 FMC No 67 Item 3030 15thRevised Page 161 effective December 27 1978 Wood Manufactures andWoodenware NOS including Wooden Decorative Ceiling Boards and BeamsWooden Figures Wooden Towel Holders Blocks for Trophy Stands Mahogany Boards Wooden Weaving Looms Match Sticks Ramie Loose but excluding Doors Furniture and Woodcarvings The aggregate measurements of theshipments was 150 62 cubic meters 150 62 cubic meters X 71 10 694 02

238 36 Destination Container Service Charges 10 932 38The rate sought to be applied is 62 00 per cubic meter as per American

President Lines Ltd Hong Kong Taiwan Freight Tariff No 5 FMCNo 67 Item No 0620 10th Revised Page 110 effective January 17 1979Item 0620 was made effective December 27 1978 Clothes Hangers All

Kinds 150 62 cu meters X 62 00 9 338 44 238 36 DestinationContainer Service Charges 9 576 80

10 932 38 9 576 80 1 355 58

In support of this application APL states inter alia

APL pursuant to the terms of FMC Agreement 10107 and with the concurrence of themembers of said agreement agreed to establish a local rate for Clothes Hangers all kinds in theamount of 62 00 per cubic meter effective December 3 1978 A copy of APL s letter to thecomplainant is identified as Attachment D l Through clerical oversight the reduction was not

published until December 27 1978 Attachment C

Agreement 10107 referred to by APL is Trans Pacific Freight ConferenceHK Independent Lines Rate Agreement of which APL is a member Trade

to U S Pacific Coast Ports from Hong Kong and Taiwan APL publishes itsown tariff

DISCUSSION REASONS FINDINGS AND CONCLUSIONS

The information in this proceeding is that APL intended to establish a localrate for Clothes Hangers all kinds in the amount of 62 00 per cubic meter inits tariff effective December 3 1978 The sailing date of each shipment is as

J In the letter dated November 27 1978 APL wrote to the Beverly Coat Hanger Company the followingThis conllnns our previous telephone conversation concerning a new rate for clothes hangers from Hong Kong and Taiwan to

local West Coast ports in the United States

We are pleased to announce that effective December 3 1978 the rate for the above commodity will be 62 00percubic meterortbousand Kilos It is hoped that our new rate amendment will serve to strengthen yourposition in product quotation to yourbuyers

Page 186: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

172 FEDERAL MARITIME COMMISSION

shown above The 62 00 per cubic meter rate desired by APL to be appliedbecame effective December 27 1978 The application was filed June I 1979

so that the Commission received an effective tariff setting forth the rate on

which refund would be based prior to the filing of the application 46 C F R

5502 92 A 2What is not clear is the rate applicable at the time of shipment APL in the

application says the rate applicable at time of shipment was 7100 per cubic

meter as per APL Hong Kong Taiwan Freight Tariff No 5 FMC No 67

Item 3030 Attachment B Attachement B is a copy of that Tariff s 15th

Rev Page 161 effective December 27 1978 As is seen above the Bills of

Lading as well as the sailing dates of the shipments involved all precedeDecember 27 1978 True the application is under oath but the supportingevidence as to the rate applicable at the time of shipment has not been madeclear Too the supporting evidence of the date of shipment has not been

suppliedThe measurements of the individual shipments are shown on the bills of

lading and have been shown above and totalled

Upon consideration of all the aforesaid the Presiding Administrative LawJudgefinds and concludes in addition to the findings and conclusions here

inbefore stated1 The application reCeived by the Secretary of the Commission on June I

1979 was within 180 days of the sailing date of each shipment involved thus

filed timely2 There was filed with the Commission prior to this application an

effective tariff setting forth the rate on which the refund would be based3 There was an error of a clerical or administrative nature which resulted

in the necessity of a refund as requested in the application that comports withthe requirements under special docket applications Rule 92 of the Commission s Rules of Practice and Procedure 46 C F R 5502 92 and section

18 bX3 of the Shipping Act 1916 but supporting evidence as to the rate

applicable at the time of shipment has not been made clear

4 The refund will not result in discrimination as between shippers5 Permission to make the requested refundshould be granted provided the

applicant provides the information and or documents to make clear the rate

applicable at the times of each shipment involved and the supporting evidenceof the date of each shipment

Wherefore it is ordered that

A Permission be and hereby is granted to American President Lines Ltd

to refund a 1 355 58 portion of 10 694 02 238 36 Destination ContainerService Charges actually collected for the benefit of Beverly Coat HangerCompany provided the said American President Lines Ltd provides to theCommission within 30 days of the date of this initial Decision the evidenceesatisfactory to the Commission to make clear the rate applicable at the time of

each shipment involved and supporting evidence of the date of each shipmentB Upon supplying the Commission with the evidence in A above and

providing the Commission is satisfied with what is submitted the refund shall

be made and this proceeding discontinued Failure of APL to supply necessary

Page 187: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

WASHINGTON D C

July 8 1979

WILLIAM BEASLEY HARRIS

Administrative Law Judge

APPLICATION OF AMERICAN PRESIDENT LINES LTD 173

proofs shall cause the request for permission to refund to be denied and theproceeding discontinued

C APL at the proper time shall publish in its tariff an appropriate noticeof this proceeding

Page 188: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

DOCKET No 79 85

TRAILER MARINE TRANSPORT CORPORATION

PROPOSED REDUCED RATES ON SUGAR CANEREFINED SUGAR N O S

DISCONTINUANCE OF PROCEEDING

October 25 1979

This proceeding was instituted to determine the lawfulness of reduced rates

on sugar cane and refined sugar N O S filed by Trailer Marine TransportCorporation TMT

TMT has appealed from a denial of the Presiding Judge of its motion to

discontinue the investigation The basis of that motion is that the rates under

investigation herein have been cancelledThe Commission is of the opinion that no further regulatory purpose would

be served by continued investigation of the now cancelled rates Accordinglythe appeal is granted and this proceeding is discontinued By the Commission

8 FRANCIS C HURNEY

Secretary

tpayton
Typewritten Text
174
Page 189: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

DOCKET No 7948

TRAILER MARINE TRANSPORT CORPORATIONPROPOSED GENERAL INCREASE IN RATES

Rate increase will not result in an excessive return on equity in comparison to other industries

facing similar businessand financial risks and is consequently justand reasonableThe reasonableness of the revenue and tonnage projections was not specifically raised as an issue

by the Order of Investigation and they must therefore be accepted for the purposes of this

proceeding

MichaelJoseph forTrailerMarineTransport CorporationWllllam L Blum for Governmentof the Virgin Islands

C Douglass Mllkr Chorna J Swedarslcy and Joho Robert Ewers for Bureau of HearingCounsel

REPORT AND ORDER PARTIALLY ADOPTING

INITIAL DECISION

October26 1979

BY THE COMMISSION RichardJ Daschbach Chairman Thomas

F Moaldey Vice Chairman James V DayandLeslie Kanuk Commissioners

This proceeding was initiated on May 2 1979 by OrderofInvestigation and

Hearing Order to determine the lawfulness of a 5 percent general rate

increase filed by Trailer Marine Transport Corp TMT to apply in the trade

between U S Atlantic and Gulf Coast ports and ports in Puerto Rico and the

Virgin Islands Because of recent amendments to the Intercoastal ShippingAct 1933 1 the proceeding was specifically limited to an investigation of

tP L 95475 92Stat 1494 1978 imposes thefollowing limitationson the Commission

I The Commission shall not order a hearing pursuBnt to this subsection on its own motion orupon protest unless the Com

mission publishes in the federal Register the reasons in detail why it considers such a hearing to be necessary andthe specificissues to beresolved by such hearing 46U S C U45 a

2 TheCommission shallcomplete such hearing within sixty days and shall issue a final decision tlereOn withinone

hundred and eightydays 46U S C A84S b

l11tough PRMA protested TMT sgeneral rate increase itdid notparticipate furtherin theproceeding

tpayton
Typewritten Text
175
Page 190: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

176 FEDERAL MARITIME COMMISSION

I Whether or not TMT s return on equity is excessive in comparison to other

industries facing similar business and financial risks and

2 The allocation ofline haul expenses and division of assets between TMT and

Gulf Caribbean Marine Lines both subsidiaries ofCrowley Maritime Cor

poration CMC for tandem barge towing services between U S Gulf Coast

ports andPuertoRico

This Order was subsequently clarified and amended to include the additional

question of

3 Why is there a projected increase in revenue for the trade despite a decreas

ing volume ofcargo carried for TMT s projected period of April I 1979 to

March 31 1980 as compared to TMT s actual period of December I 1977

toNovember30 1978 Orderserved July 5 1979

TMT was named Respondent and the Government of the Virgin Islands GVI

and the Puerto Rico Manufacturers Association PRMA were named Pratestants 2 Expedited hearings were conducted on June 28 and 29 1979 before

Administrative Law Judge Seymour Glanzer 3 resulting in a record consistingofa296 page transcript and ten exhibits

On August 21 1979 Administrative Law Judge Stanley M Levy issued an

Initial Decision in which he concluded that TMT did not reasonably establish

the volumes and revenues which may be anticipated by its rate increase andthat therefore TMT had not met its burden of showing that its rates are justand reasonable He thus found the rates in Supplement No I to Tariff FMC F

No 5 to be unlawful Exceptions were filed by TMT Sea Land Service Inc

Puerto Rico Maritime Shipping Authority PRMSA and GVI 4 The Com

mission s Bureau of Hearing Counsel and GVI filed replies to exceptions In

addition Hearing Counsel filed a Petition to Strike portions of PRMSA s

argument which GVI supports and to which TMT and PRMSA repliedTMT s request for oralargument wasdenied

DISCUSSION

TMT claimsthat theInitial Decisionem in concluding that

I TMT had theburden ofproving that its rates are just and reasonable by prov

ing that its forecastyear revenue and tonnageprojections are reasonable

2 TMT s rates are unlawful without considering the fact that they are identi

cal to those ofits competitors3 TMT s rates are unlawful without considering its historical financial results

and

Judge oianzer conducted the hearings because Judge Levy was hospitalized recovering from an operation However JudgeLevyconducted theprehearingconference and prepared the Initital Decision

4 Sea Land and PRMSA filed concurnmt petitions for leave to intorvene 10 which TMT filed supporting replies and OVI filed

an opposlllon The Commission s ndes of practice and procedure state thaI petitions to intervene which are filed after the close

ofhearings will not ordinarily be granted 46 C F R 02 72 The petitions offer no compelling MIlSOn fordeviatina from this policyandwlll therefore bedcnied

5 In light of the disposition of PRMSA spetition for leave to intervene Hearing Counsels petition ismoot and will accordinglybedismissed

Page 191: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES 177

4 it cannot be determined why there is a projected increase in revenue despiteaprojected decrease in volume for theforecastyear

6

TMT does not except to the conclusions conceming the tandem tow issueand in fact asserts that if the cargo cube allocation method is employed its

projected rate of return on equity decreases from 16 15 percent to 14 29

percentGVI agrees with all the conclusions in the Initial Decision but notes that the

Commission must enter a further order to effectuate those conclusions It

suggests that an order directing a refund ofthe full amount ofthe rate increase

plus arollback ofthe rates to areasonable level wouldbe appropriateInreply to TMT s Exceptions Hearing Counsel contends that

1 TMT had the burden ofproof on all issues including the ultimate issue ofthejustness andreasonableness ofits rates

2 TMT had ample notice that its projected revenue and tonnage figures were

contested3 TMT s offer ofproof concerning its budgeted revenue figure would not cure

all thedeficiencies inTMT s direct case

4 The rates ofothercarriers werenot made an issue by theOrder5 TMT should not be allowed to change its test period to look at its historical

rates ofreturnon ratebase fora six year period and6 TMT s corrections oftwo ofitsexhibitsare untimely andshouldbe rejected 7

Hearing Counsel further suggests that if the Commission finds TMT s generalrate increase to be unjust and unreasonable it must order the rate increaserolled backandarefundofall revenuescollected as aresult ofthe increase

The Commission has reviewed the entire record in this proceeding andconcludes that certain findings and conclusions set forth in the Initial Decisionare not warranted and must therefore be modified or clarified by the followingdiscussion In all other respects however the Initial Decision is correct andshall be adoptedby theCommission as its own

The Presiding Officer concluded that if TMT s revenue projections are

accepted a return on equity to TMT in the zoneof 15 8 to 16 15 percent would

not be excessive and its rate increase would not therefore be unlawful InitialDecision at 6 However the Presiding Officer further concluded that whether

or not TMT s projected return on equity would exceed this zone of reason

ableness could not be determined on the record because TMT failed to establish a reliable projection of its net revenues Initial Decision at 21 22 TheCommission finds that the Presiding Officer incorrectly based his decision on

the reasonableness vel non of TMT s revenue and tonnage projections andconcludes that for the purposes ofthis proceeding these projections were not

in issue andmust be accepted

6TMT also asserts that the Presiding Officer s criticism of its correcting certain errors in its submissions isunwarranted The

Commission finds nothing prejudicial in these remarks particularly in view of the decision reached herein but does endorse the

proposition thatP L 95475 fpJlaces ahigh degree of responsibility on the carrier seeking a rate increase to supply the informa

tion necessary to permitexpeditious consideration Initial Decisionat39

7 Gvrs reply to exceptions raises several ofthe same points and is therefore subsumed in any discussion of Hearing Counsel s

oosition

Page 192: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

178 FEDERAL MARITIME COMMISSION

The amended Intercoastal Shipping Act reflects a clear Congressional dissat

isfaction with the lengths of time necessary to complete general rate cases S

Rep No 951240 95th Cong 2d Sess 9 10 1978 Itprescribes strict time

limits applicable to everyone involved in such rate proceedingscarriers pro

testants administrative law judges and the Commission To enable the Com

mission to issue its final decision within 180 days of a rate increase takingeffect the formerly open ended hearing process has been severely curtailed

Hearings on rate increases will not now be conducted unless the Commissiondetails why a hearing is necessary and specifies the issues to be resolved by any

suchhearing 846 U S C A845 a

In compliance with P L 95475 s strictures the Commission s Order of

Investigation and Hearing limited the hearing to only two issues 1 the

excessiveness of TMT s return on equity and 2 the allocation ofexpenses and

assets for the tandem barge towing service This Order expressly noted that in

its protest to TMT s rate increase GVI had requested that several additionalissuesbe investigated among them

Whether TMT s projection of the Ievenue that is designed to be procIuccd by the proposed rates

isIeuonable

But the Commission declined GVI s request At a subsequent prehearing con

ference GVI requested discovery concerning TMT s revenue projections The

Presiding Officer denied this discovery requestby statingWe will take for the purpose of this proceeding the Ievcnue projections as set forth in the

submission to the Commisison and we will base the determination hcrcaftcr as to whether those

Ievenues assuntinl those Ievenues lIIe obtained what lIIethe consequencesAnd that s ineffect what Item Iof the Commission s Order ofinvcstilation asks

Prchcsring Transcript at 23

GVI then filed a Petition for Clarification or Reconsideration of the

Commission s Order in which it requested that the Commission state that its

intent was that the issue ofrevenue projections or any other element ofthe rate

of return on equity not be excluded from the investigation if such issue is

disputed The Commission denied GVI s request by statingthat

b ecausc this was not and is not the Commission s intent a clarification of this nature is

inappropriateOrder served July S 1979 at 2

The Commission did however amend its Order to include a third issuewhyis there a projected increase in revenue despite a decreasing volume of cargo

for theforecast yearIn light of this chronology the reasonableness ofTMT s tonnage and reve

nueprojections was not properly an issue in this proceeding It was neither

expressly delineated nor implicit in the scope of the first or third issues Hear

ings under PL 95475 must remain limited by only those issues which the

Commission orders investigated In appropriate cases the Commission may

well order an investigation into the methodology employed by a carrier in

projecting its revenues andvolumes This is not suchacase however

RopIdIoH of tile tlc In on of Invellipllon tile I In ony lftICIOdiIn lYt a p

1 1 1 I t I nd18UtllUlhle oI6U S C 11817andMCb

Page 193: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES 179

As mentioned earlier the amended Order of Investigation and Hearingraised as thethird issue

Why is there a projected increase in revenue for the trade despite a decreasing volume of cargocarried for TMT s projected period of April I 1979 to March 31 1980 as compared to TMT s

actual period of December I 1977 to November 30 1978

Because he concluded that the record failed to establish projected volumes and

revenues the Presiding Officer further concluded that this third issue cannotbe determined Initial Decision at 40 The Presiding Officer also stated thatthe main reasons offered by TMT to explain the decrease in tonnagea shiftto thm tariffs and increased competition were not supported by the record

Initial Decision at 34 The Commission disagrees with these conclusions andfindsthat TMT has adequately responded to andexplained the third issue

Within the context of TMT s operating revenue forecast Schedule V ofExhibits 2 and 7 there are only two categories in which projected revenue tonsdecrease while projected revenues increase automobiles and other Regardless of the reasonableness of the underlying projections the record does containsufficient facts to explain the relationsip between tonnage and revenue forthese two categories The volume reduction for automobiles is predicated on

manufacturers automobile size reductions However this decrease in volumeis more than offset by the general rate increase resulting in an overall projectednet increase in revenue The other category is expected to decrease in volume

by approximately 20 percent due primarily to a shift to other TMT tariffsThis decrease will be offset by an increase in volumes of highly rated tank and

refrigerated cargoeswhich will again result in anet increase in revenues

For the foregoing reasons the Commission finds TMT s general increase in

ratesjust andreasonable and not otherwiseunlawfulTHEREFORE IT IS ORDERED That the Initial Decision in this pro

ceeding as modified and clarified by the above discussion is adopted by theCommission and

IT IS FURTHER ORDERED That the Exceptions of Trailer Marine

Transport Corporation are granted to the extent indicated above and the

Exceptions of theGovernment of theVirgin Islands aredenied andIT IS FURTHER ORDERED That the Petitions for Leave to Intervene

filed by Sea Land Service Inc and the Puerto Rico Maritime Shipping Au

thority are denied and the Petition to Strike filed by the Bureau of HearingCounsel is dismissed and

IT IS FURTHERORDERED That this proceeding is discontinued

By theCommission

S FRANCISC HURNEY

Secretary

Page 194: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

No 79 48

TRAILER MARINE TRANSPORT CoRPORATIONPROPOSED GENERAL INCREASE IN RATES

Adopted October 26 1979

The evidence fails to establish that the rate increale will notresult in an eXOCIlIlIive feturn on equityto TMT in comparison to other indllllrios facing similar risks

The carso cube allocation of eXpoDte8 and division of 18 for the tandem barse towing leMeo

is the appropriate method of allocationThe evidence falls to establish any reasonably accurate basis for determining volumes or revenues

which may be anticipated by reason of the rate increaseThe evidence falls to establish any reasonably accurate basis for determining volumOl or revenuOl

which maybe anticipated bY reason of the ra incThe evidence being insufficient to permit a determination of volumo and revenues it cannot be

determined why there is a projected increate in revenue for the trade despite a decreaaingvolume of cargo to be carried

Michael Joseph for respondent Trailer Marine Transport CorporationWilliam L Blum for protestant Government of the Virgin IslandJohn Robert Ewers C Douglass Miller and Chama J Swedarsky Hearing Counlel

INITIAL DECISION OF STANLEY M LEVYADMINISTRATIVE LAW JUDGE I

On January 31 1979 Trailer Marine Transport Corporation TMT filed

Supplement No I to its Tariff FMC F No Sproposinga S percent generalincrease in rates effoctive April I 1979 Under authority of Commission

Special Permission No 6317 TMT filed Supplement No 2 to its TariffFMC F No S postponing the April I 1979 eftective date to May I 1979

TMTTariff FMCF No S establishes local joint and proportional commod

ity rates between United States Atlantic and Gulf Coastpom and ports in theCommonwealth ofPuerto Rico and the Virgin Is1and via direct and tran88himent service at Puerto Rico The proposed S percent general increase would

apply to all ocean freight commodity rates to and from U S Atlantic and GulfCoast ports and Puerto Rico to the minimum ocean freight charge on a

shipment under one bill of lading between terminals in Puerto Rico and U S

This decision will become tho dcciIion of tho Commillionin tho ablenoe ofroviow thereof by the Commillion Rule 227 Rulor Practice and Procodu46 CF R 1502 227

mharris
Typewritten Text
180
Page 195: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES 181

Atlantic and Gulf Coast ports TMT Freight Tariff No 7 FMC F No 5Rule 5 at 29 and to rates which apply Per Trailer i e except as otherwiseindicated in individual tariff items rates on shipments loaded in trailers by the

shipper unloaded by the consignee andhave specified minimum and maximuminterior capacities TMT Freight TariffNo 7 FMC F No 5 Rule 15 at 36

Supporting data as required by Commission General Order No 11 G O 11was submitted by TMT at the time of filing of the proposed increase

Protests were received from the Puerto Rico Manufacturers AssociationPRMA and the Government of the Virgin Islands GVI

In its protest GVI contended that TMT on the basis of its G O 11 reportfailed to provide sufficient justification that its proposed rates werejust reason

able and lawful under section 18 a of the Shipping Act 1916 and undersections 3 and 4 of the Intercoastal Shipping Act 1933 as amended The GVI

alleged TMT s data was insufficient to determine l that part of the em

bedded debt cost of Crowley Maritime Corporation CMC TMTs parentcorporation which should be allocated to TMT 2 the debt and equity ratioofCMC and 3 the rate ofreturn on equity thatshould be attributed to TMTFurther the GVI believed additional information was required of TMT to

explain the revenue projections that are contained in its G O 11 for theforecasted year The GVI requested that the Commission enter into a hearingand investigation and include at least the following issues

1 Whether the proposed rates are unjust and unreasonable in that they will

provide TMT and or CMC with an excessive return as measured byaccepted analytical methods

2 Whether TMTs projection of the revenue that is designed to be producedby the proposed rates is reasonable

3 What is a just and reasonable allocation of assets and expenses from CMCto TMT

4 Whether the proposed rates are unjust and unreasonable in that their

negative effect on the Virgin Islands economy outweighs the carrier s needif any for increased revenues

DespiteGVls protest the Commission permitted the subject rate increase to

go into effect without suspension in view ofit being subject to section 3 cl Bof the Intercoastal Shipping Act 1933 as amended whichprovides in part thatthe Commission may not suspend a n increase or decrease of 5 percentum or

less and filed as part of a general increase in rates or a general decrease inrates However the Commission wasof the opinion that TMTs proposed5 percent increase as proposed in Supplement No 1 to Tariff FMC F No 5

should be made the subject of a limited public hearing to determine whetheror not TMTs return on equity is excessive in comparison to other industries

facing similar business and financial risks Moreover the Commission revieweddata submitted by TMT regarding the tandem barge towing service with GulfCaribbean Marine Lines GCML also a subsidiary of CMC between U SGulf Coast ports and Puerto Rico This data showed that costs are divided

equally between the two companies for the joint tow portion of a voyage TheCommission was of the opinion that an equal division of these expenses does

Page 196: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

182 FEDERAL MARITIME COMMISSION

not follow abenefits received allocationprinciple Therefore itdetennined thatthis proceeding should also determine the allocation of line haul expenses andthe division of assets between TMT and GCML for tandem barge towingbetween U S Gulf Coast ports and Puerto Rico

Thereupon the Commission ordered that an expedited investigation be instituted into the lawfulness of the tariff matters contained in Supplement No 1

to TMTs Tariff FMC F No 5 for the purpose ofmaking such findings as the

facts and circumstances warrant and further ordered that this proceeding belimited to an investigation of

1 Whether ot not TMTs return on equity is excessive in comparison to other

industries facing similar business and financial risks and

2 The allocation of line haul expel1lleS and division ofassets between TMT andGulfCaribbean Marine Lines both subsidiaries ofCMC for tandem bargetowing services between U S Gulf Coast ports and Puerto Rico

Thereafter GVI filed a Petition for Clarification or Reconsideration oftheCommission s Order GVI requested that the Commission clarify its Order bystating that it had been the Commission s intent that the issue of revenue

projections or any other element of the rate of return on equity not beexcluded from the investigation if such issue is disputed

In its Order of Investigation and Hearing served May 2 1979 the Commission ordered that this proceeding shall be completed within sixty 60 days ofthis order Sixty days thereafter being July I 1979 the hearingwas concludedon Friday June 29 1979 58 days from the issuance of the Commission s orderand 59 days from the day the rate increase became effective On July 5 1979

the Commission issued an order with regard to GVIs petition for clarificationThe Commission declined to state in accordance with GVIs request that it

had been the Commissions intent that the issue of revenue projections or anyother element of the rate of return on equity not be excluded from the

investigation Rather it stated that Because this was not and is not theCommission s intent a clarification of this nature is inappropriate and GVrs

request must therefore be deniedGVI requested alternative relief however as follows

That the Commission reconsider its Order of Invcaisation and Hcaring and amend it to include

the following issue Why docs TMT project a decrease of 16 in the number of revenue tons

carried between the historical and projected years

With respect to the alternative relief the Commission was of the beliefhowever that the question posed for hearing by GVI was within the originalscope of the Order of Investigation and Hearing and that a clarification to thateffect therefore was appropriate Thereupon it ordered the Commission sOrderof Investigation and Hearing of May 2 1979 be clarified and amended to

include the following questionWhy is there a projcacd increase in revenue for the trade dcapite a decreasing volume of cargocarried for TMTs projected period of April I 1979 to March 31 1980 as compared to TMTs

actual period of December I 1977 to November 30 1978

Although the Commission clarification order was not served until after tbe

hearing was completed the parties wereaware that pursuant to GVIs petition

Page 197: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES 183

the matter of Commission intent was under consideration by the CommissionAdministrative Law Judge Glanzer at the start of the hearing2 stated

I have been told that in the very near future maybe not for a day or two the Commission willissue an order a written order granting the petition for clarification as suggested by hearingcounsel

Will tbat create any problems for anyone in this proceeding I think Mr Joseph informed me

earlier tbat he was quite prepared to go ahead with any decision that the Commission may havemade in connection with the granting of that petition for clarificationMr JOSEPH That is correct

Hearings were held in this proceeding on June 28 and 29 19794There are

295 pages of transcript and 10 exhibits 5

Without specific prior knowledge of how the Commission would treat theissue of revenue projections or any other element of the rate of return on

equity considerable evidence was introduced at the hearing relating to TMT s

revenue projections The conclusion to be reached from such evidence is thatas set forth hereafter in detail TMTs revenue projections cannot be reliedupon to determine whether TMTs return on equity is excessive and conse

quently whether the rate increase is or is not just and reasonable and otherwiselawful

Arithmetically if one accepts the accuracy of the revenue projections thereturn to TMT s equity is within the zone of reasonableness and as such therate increase cannot be said to be unlawful

Upon consideration of the evidence of record there is set forth the following

FINDINGS OF FACf

I

Issue Whether or not TMTs return on equity is excessive in comparison toother industries facing similar business and financial risks

I Based upon statisticspublished by Citibank the following rates ofreturnon equity have been earned by non financial enterprises in general and by thatcategory of the transportation industry which includes shipping Le MiscTransportation for the periods shown

Non financialMisc Transportation

969 73114

116

974 7813 8

17 0

969 7812 815 0

97814 816 7

2 For the years 1975 1978 TMT cannot be considered dominant in theoverall Puerto Rican trade although it has increased its market penetrationduring the last four years a trend which is likely to continue

Tr 3

Counsel for TMT

4 Atthe time ofthe hearing the undersigned was hospitalized and recovering from spinal surgery on June 27 1979 Administrative Law Judge Seymour Glanzer presided over the presentation of testimony and introduction of evidence Theparties interposedno objections to the undersigned issuing an Initial Decision on the record adduced Tr 3

S Also an Offer of Proof

Page 198: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

184 FEDERAL MARITIME COMMISSION

3 TMT leases many of the assets employed in the Puerto Rican Tradefrom related companies consequently the debt obligations of these assets do not

appear on TMTs books4 For rate of return purposes the appropriate capital structure for re

spondent is that of its parent corporation Crowley Maritime Corporationwhich consists of 57 68 percent debt and 42 32 percent equity

5 The objective measure of financial risk is determined by looking at the

capital structure of the firm and hypothesizing that the more and expensive thedebt the company has the more volatile will be its return on equity The equityinvestor is therefore subject to more risk in a highly leveraged firm

6 The median debt equity ratio for all industries surveyed by Forbes forthe latest 12 months was 04 the surface transportation industry had a

debt equity ratio of 06 the air transportation industry 09 and the publicutility industry a ratio of 10

7 The CMC debt equity ratio as of December 31 1978 was 11 as

computed on the basis of Forbes8 CMC has substantially more long term debt to equity than the average

firm and it therefore can be concluded that CMC is more leveraged than the

average firm9 Due to CMC s more leveraged position than other companies based on

median debt equity ratios TMT should be given a financial risk premium of05 percent

10 Using a variation in earnings test based on TMTs five years of earn

ings including financial data for the years December I 1977 November 30

1978 and January I 1978 December 31 1978 TMT appears to have a highbusiness risk

11 As the purpose of assessing a carrier a risk premium is to allow a return

capable of attracting needed capital on the basis that TMT is subjected to an

above average business risk CMC should be allowed a business risk premiumof 10 percent

12 The total appropriate adjustment to the ten year average rate of return

on equity for non financial corporations for business and financial risk shouldbe 15 percent for TMT

13 Based on the high cost of attracting capital a 15 percent adjustmentshould be attached to the ten year average return on equity to bring that return

up to a reasonable level which will account for current financial trends14 Given all of the above average risk conditions TMT or CMC should

be entitled to a rate of return on equity which is 3 0 percent higher than theten year average for non financial U S corporations of 12 8 percent

1 S The reasonable return on equity that TMT should be allowed to earn forthe projected year March 1 979 April 1980 is 15 8 percent

II

Issue The allocation of line haul expenses and division of assets between

TMT and Gulf Caribbean Marine Lines both subsidiaries of CMC for tan

dem barge towing services between U S Gulf Coast ports and Puerto Rico

Page 199: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES 185

16 TMT s forecasts include an allocation of certain expenses and division

of assets relating to tugs to be used to tow in tandem both a TMT barge and

a barge of Gulf Caribbean Marine Lines GCML an affiliate of TMT The

barges are thus towed in tandem between Lake Charles Louisiana and San

Juan Puerto Rico17 One round voyage between Lake Charles and San Juan for TMT con

sumes twenty one days ofwhich approximately sixteen days are actual steam

ing time during which a single tug is towing both barges During the remainingapproximately five days the tug remains with the TMT barge alone as the

GCML barge utilizes a separate tug while calling at various additional portsin both the continental United States and Puerto Rico

18 While both TMT s and GCMLs barges carry significant amounts of

cargo southbound TMT whose trailers are compatible with the carriage of

manufactured goods also carried significant amounts northbound GCML on

the other hand rarely carries any cargo from Puerto Rico to the continental

United States19 TMT s forecast assumes the utilization of three tugs for the entire year

in the tandem towing service described above and allocates the related ex

penses and assets 60 percent to TMT and 40 percent to GCML TMT arrives

at this 60 40 ratio by allocating 50 percent of the round voyage tandem

steaming time approximately eight days each to TMT and GCML and 100

percent of the remaining approximately five days to TMT Thirteen of the

twentyone days or approximately 60 percent of the expenses and assets

respecting the three tugs are thus allocated to TMT and the same percentageis applied on an annual basis

20 TMT originally allocated 4942 610 to TMT and 2 965 607 to

GCML for the assets and expenses of the tandem barge towing services

producing a 625 375 percent time allocation

21 TMT subsequently supplied a new total line haul expense figure of

4 942 610 and an allocation of 2 965 607 to TMT and 1 977 003 to GCML

which produced a 60 40 percent time allocation

22 At the hearing TMT stated that the 4 942 610 figure appearing in staff

witness Coleman s testimony which Mr Coleman identified as line haul

expense actually included expenses for a greater period than that involved in

the actual tandem tow Thereafter TMT submitted a revised total allocation

of 4 078 966 of tug expense for the tandem barge towing service

23 With few exceptions G O II prescribes the allocation of expense and

division of assets on a volume basis24 G O II prescribes a vessel day allocation for cargo vessels employed in

The Service for less than the entire reporting period The General Order states

in relevant part that

For such vessels the Adjusted Cost shall be allocated between Voyages in The Service and Voyagesin Other Services on the basis of the relationship the number of days in each bears to the total ofboth

This provision is inapplicable to the tandem barge towing service

Page 200: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

186 FEDERAL MARITIME COMMISSION

25 Under the requirements of G O II direct vessel expenses are accumu

lated for the service and allocated on a revenue ton mile relationship which isvolume affected

26 A cargo cube allocation isbased on the tonnage of cargo carried on eachcarrier s respective barge Cargo cube is a volume allocation

27 During the period when there is no tandem barge towing but only the

towing of aTMT barge or lay up time assets and expenses are allocated on a

revenue ton mile relationship28 Cargo cube method of allocation for assets and expenses of the tandem

barge towing services produces an allocation of 63 7 percent for TMT and 36 3

percent for GCML29 The amount of cargo that each carrier carries on a round trip voyage in

the tandem tow is not reflected in a time formula allocation

III

Issue Why is there a projected increase in revenue for the trade despite adecreasing volume of cargo carried for TMTs projected period of April I 1979

to March 31 1980 as compared to TMTs actual period of December I 1977

to November 30 19781

30 Donald C O Malley Jr Director of Tariff and Regulatory Affairs forthe Caribbean Division of Crowley Maritime Corporation prepared the pro

jected revenue and tonnage estimates shown on Schedule V Exhibits 2 and 7

31 Mr O Malley is primarily responsible for preparation of Schedule V ofExhibits 2 and 7 the forecast of revenues on a commodity bycommodity basissubject to the supervision of Mr Roush

32 Neither ofTMTs witnesses Mr Roush nor Mr O Malley are involvedin preparing the budget

33 Indeveloping Schedule V ofExhibit 2 Mr O Malleybegan with the totalrevenue figure of 48792 000 which came from TMTs annual forecastedbudget Mr O Malley had nothing to do with the figures which were used to

arrive at the 48 792 000 The 48 792 000figure wasfirst giventoMr O Malleyat the time he was instructed to file for a rate increase

34 The revenue and tonnage forecast as prepared by Mr O Malley for thefifteen leading commodities and shown on Schedule V of Exhibit 2 was not in

existence at the time the forecasted budget figure of 48 792 000 was createdThe budget figure became the revenue forecast and tonnage figures were ad

justed to conform to the budget previously mandated35 Operating Revenue and tonnage for the historical year are as shown on

Schedule V of Exhibit I these figures are taken from TMTs computer andreflect actual experience

36 The percentage adjustments in projected cargo tonnage shown on Ex

hibit 5 werenot used by TMT in making the original tonnage estimates shownon Schedule V Exhibit 2 They were an after thofact calculation

37 Mr O Malley does not remember how he calculated the tonnage pro

jections for the fifteen leading commodities shown on Schedule V Exhibit 2

Page 201: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES 187

38 The forecast revenue amount figures for each of the fifteen leadingcommodities as shown on Schedule V of Exhibits 2 and 7 were derived fromthe respective historical revenue amount figures shown on Schedule V ofExhibit 1

39 A certain amount of cargo previously moving pursuant to the ratesunder investigation are now moving under through rate tariffs

40 Mr O Malley adjusted the revenue figures for each ofthe fifteen leadingcommodities taking into account shifts in cargo to through rate tariffs com

petition and the proposed 5 percent increase Mr O Malley could not recallthe actual dollar amounts of the adjustments he made

41 The record does not reveal the details of any calculations or analysiswhich may have formed the basis for the derivation of the forecast revenue

amounts from the historical revenue amounts and Mr O Malley could notrecall how he calculated the projections for the fifteen leading commoditiesHowever rather than any separate analysis and calculation for each com

modity the revenue ton forecast on Schedule V of Exhibits 2 and 7 are

susceptible of being derived mathematically from the figure in the revenue

amount column as follows

T R divided by 105 X R fTwhere T is the projected revenue tonnage figure

R is the projected revenue amount figureT is the historical revenue tonnage figure andR is the historical revenue amount figureThe 1 05 factor represents the 5 rate increase

42 The other category represents all commodities carried by TMT inaddition to the fifteen individual commodities producing the highest revenues

43 Mr O Malley calculated the revenue figure for Other cargo Schedule V Exhibit 2 by subtracting the 27 580 588 total revenue of the fifteen

leading commodities from the budget figure of 48 792 000 Mr O Malleydoes not remember how he calculated the 689 363 revenue tons for Other

cargo as shown on Schedule V Exhibit 244 TMTs total projected revenue is higher than its total actual revenue for

the actual twelve months ended November 30 1978 despite the fact that itstotal projected cargo volume is lower than its total actual cargo volume for saidtwelve months

45 Of the sixteen commodities categories in TMTs projection only two

vehicles and other involve both a projected increase in revenue and a

projected decrease in cargo volume

46 The reason for the projected revenue increase despite a projected volumedecrease for vehicles is that while TMT projects a slight decrease in the cubicvolume ofvehicles as a result of manufacturers automobile size reductions the

corresponding decrease in revenues is more than offset by the subject 5 percentrate increase Although TMTs estimate of a 5 5 percent growth in number ofvehicles carried would have resulted in an increase in both the projectedrevenue and the projected cargo volume over the actual 1978 results the

Page 202: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

188 FEDERAL MARITIME COMMISSION

vehicle size reductions estimated at approximately 6 percent brought abouta decrease of both instead While this resulted in a projected net decrease of8 percent in volume application of the 5 percent rate increase tothe reducedrevenue left a projected net increase in revenue for vehicles

47 Although TMT calculated the revenue shown for Other cargo on

Schedule V Exhibit 2 by simply subtracting the revenue estimates for the

fifteen leading commodities from the forecasted budget figure TMT predictsthat about 20 percent of the 1978 revenueand corresponding volumewill move

under other TMT tariffs not in the Trade but that partially offsetting thisdecrease will be an increase in revenue and volume in relatively high rated

cargoes carried in tank and refriprated trailers48 With the exceptions of refrigerated cargo and tank trailers separate

analysis and calculations were not performed to derive the revenue forecast for

any commodities other than those within the topftfteen rather a percentreduction for all other cargo was estimated not to exceed the revenue figurepreviously fixed

49 TMTs market share in the U S Mainland Puerto Rico trade has increased each year from 1975 through 1978 and TMT expects that its market

share will continue to increase

50 On the basis of the routine analysis of Schedule V TMTs G O 11 staffwitness Coleman calculated that the total revenue per ton increased fromTMTs actual year to the projected year by 23 percent and that in the Other

cargo category alone revenueper ton increased approximately 49 percent51 On threeseparate occasions Mr Coleman requested Mr Craig Wallace

of CMC to explain why revenue per ton on individual line items on TMTs

projected Schedule V increased from TMTs actual Schedule Von the averageof about 5 percent whereas the Other cargo category produced a 49 percentincrease resulting in an overall increase of 23 percent

52 In response to a telephonetinquiry of February 9 1979 by Mr Colemanas to why revenue tons increased 23 percent Mr Wallace responded that TMT

wouldbe carrying higher rated liquid tank cargo which is a low tonnage cargo53 In response to a telephone inquiry of March 2 1979 by Mr Coleman

as to whether TMT included the general rate increase in its projectionsMr Wallace responded yes and further that the 5 94 percent increase in

revenue is the result of the compounding effect of applying the 5 percentgeneral increase a 23 percent increase in revenue per ton offset by a 13 88

decrease in revenue tons carried The increase in revenue per ton is principallyaffected by Other cargowhioh consists of liquid or tank cargo which is lowin tonnage and carried ata higher rate

54 In response to Mr Newton Frank Supervisory Accountant FederalMaritime Commission on May 22 1979 regardingIMTsdecrease in pro

jected revenue tons and increase in revenue Mr Wallace responded that ton

nage was down due to the fact that morecargo was being carried under ICCtariffs Mr Wallace further responded that the revenue in Other cargoincreased 48 percent 38 percent of which is due to more reefer and specialcargo which is high rated and low in tons The remaining 10 percent is due to

the projected mix in quantities

Page 203: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES 189

55 On May 22 1979 Mr Coleman called Mr Wallace regarding the

conflicting information given Mr Frank as compared to previous conversations

regarding the increase in revenue per ton and decrease in revenue tons

Mr Wallace stated that the 48 percent increase in revenue referred to wasthe

revenue per ton increase of the total of Other cargo and that in addition to

the increase in tank cargo there is a projected increase in reefer cargo which

he may have forgotten to mention earlier

DISCUSSION

I

Whether or not TMTs return on equity is excessive in comparison to other

industries facing similar business and financial risks

In a prior general rate increase proceeding Docket No 77 27 the Commis

sion suggested using the capital structure of the parent company CMC and or

related companies as a better indication of the true debt equity structure of

TMT This suggestion has been carried through although updated in this dock

eted proceeding The capital structure of CMC as computed by the companyconsists of 57 68 percent debt and 42 32 percent equity as of December 31

1978In the case of TMT a wholly owned subsidiary of CMC any attempt to

directly measure the cost of equity capital is highly speculative because of the

diverse nature of CMC which is the stock issuing entity in the corporate chain

Although the capital structure of CMC has been used in this proceeding as a

surrogate for TMT some measure of the cost of equity capital for TMT is

requiredIn lieu of a direct cost of equity study a comparable earnings test is a

reasonable alternative in determining TMT s fair rate of return The comparable earnings test entails the determination of rates of return being earned byfirms similar to TMT Generally the analysis is centered around determiningaverage rates ofreturn being earnedby various firms and thereafter attachinga risk factor according to prevailing trends for the business and financial risk

TMT faces vis a vis these other firms

To determine a reasonable rate of return on equity a long run average of

industry earnings is preferable The use of a time series analysis smooths our

variations in earnings which may fluctuate widely from year to year avoids the

possibility of allowing a carrier an inadequate return if current earnings are

abnormally low or conversely permitting a carrier unjustifiably high profits if

a temporary surge in earnings has occurred In addition a time series providesa better idea of the trend in earnings Therefore the initial determination of a

fair rate of return for a carrier experiencing average risk should be based on

the average rate of return on equity earned during the past ten years bynon financial US corporations Hearing Counsel s witness Mr Stilling FMC

Staff Economist presented numerous schedules to that effect For purposes of

this proceeding Mr Stilling s initial determination of a fair rate of return for

Page 204: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

190 FEDERAL MARITIME COMMISSION

a regulated firm experiencing average risk was based on rates of return on

stockholder s equity earned during the past ten years by non financial U S

corporations as reported by Citibank6

For the ten year period 1969 to 1 78 non financial corporations averaged12 8 percent return on equity and in 1978 the companies averaged 14 8

percent indicating that returns are currently higher than over the past decadeAlthough during the past ten years there has been a trend of increasing returnson equity between 1974 and 1975 average returns on equity dropped from 13 9

percent to 11 7 percent On a moving average basis the fiveyear median return

on equity for U S industries has increased from 116 percent during the period1970 1974 to 13 9 percent in the 1974 1978 period Such higher nominalearnings reflect both a real component and an inflation component As inflationrises earnings and rates of return rise in large measure due to higher pricesIt is therefore more reasonable to look at a ten year period of time to determine trends in returns On this basis an appropriate starting point from whicha determination can be made as to a reasonable rate of return on equity forTMT is the ten year 12 8 percent average rate of return on equity of the

composite non financial U S corporationsTMT s witness Mr Roush calculated the fair rate of return on equity for the

projected year based on the 1978 Fortune 500 average with a 2 6 percentadjustment which Dr Robert Ellsworth FMC Staff Economist used in a previous case Although Mr Roush selected the 1978 Fortune 500 average as thebasis for his calculation he stated that such an average could not be used as

an indicator of business conditions in 1979 or 1980 and he did not review thealternate sources of business data Nor did Mr Roush explain why Dr Ellsworth s 2 6 percent adjustment should be applied to the 1978 Fortune 500

averageAdjustment to the ten year average rate of return on equity to account for

current trends in returns on equity cost of money financial and business riskshould be reflected in the return that any regulated firm would be permitted to

earn if it was in a similar risk category as an average firmThe objective measure of financial risk is determined by looking at the

capital structure ofthe firm and hypothesizing that the more debt and the more

expensive the debt the company has the more volatile will be its return on

equity The equity investor is therefore subject to more risk in a highlyleveraged firm

To determine whether TMThad more financial risk leverage than theaverage U S corporation schedules were prepared by staft witness Mr Stillingwhich show the debt equity ratios for those industries surveyed by Forbes forthe latest twelve months This data was then compared by Mr Stilling to thedebt equity ratio of TMT to determine whether it is more or less leveragedthan the average firm

Mr Stilling s data show that the median debt equity ratio for all the industries surveyed by Forbes for the last twelve months was 0 4 the surface

Non financial corporations include all industries survoycd by Citibank among them transportation exQClpt linancial institutionscommercial banks investment funds sales linance which returns may not be accurately reflected

Page 205: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES 191

transportation industry had a debt equity ratio of 0 6 the air transportationindustry 0 9 and the public utility industry a ratio of 10 From data providedby the carrier as of December 31 1978 Mr Stilling calculated the CMCdebt equity ratio to be 11

On the basis of a comparison of the above debt equity ratios Mr Stillingconcludes that CMC has substantially more long term debt to equity than the

average firm and therefore CMC is more leveraged than the average firmBecause of CMC s more leverage position than other companies based on themedian debt equity ratios Mr Stilling judged that TMT should be given a

financial risk premium of 0 5 percentThe measure of business risk is a test of stability of earnings of a firm and

is measured in terms of fluctuations in rates of return Higher variations are

viewed as symptomatic of higher levels of riskIn order to determine business risk Mr Stilling applied a variations in

earnings test Using the variations in earnings test based on TMTs five yearsof earnings including the period December 1 1977 November 30 1978 and

January 1 1978 December 31 1978 Mr Stilling concluded that TMT appeared to have a high business risk Mr Stilling compared the financial datafor TMT to the variations in rates of return for thirty industries surveyed byForbes for the five year period 1974 1978 The data according to Mr Stillingindicates that TMT is in a high risk position as compared to the industries

surveyedHowever in determining levels of risk consideration must also be given to

the subjective measures of risk A less precise alternative to the variations in

earnings test to estimate business risk is to analyze market shares The largerthe market share of the firm the more dominant its position A dominant firmwith large market shares will normally be subjected to less risk because its

position permits the firm to experience various economies of scale and therebywithstand the rigors of competition

Based on an analysis of TMTs market share in the Puerto Rican Trade forthe years 1975 1978 Mr Stilling found that TMT cannot be considereddominant in the overall Puerto Rican Trade with a meaningful market sharesomewhat higher than 17 percent However TMT s profits have always been

positive and its market penetration during the last four years has increased a

trend which Mr Stilling believes is likely to continueThe above factors indicate that TMT is subjected to more than average

business risk although TMTs profits have always been positive and the com

pany has had little trouble in attracting new investment On this basis as the

purpose of assessing a carrier a risk premium is to allow a return capable of

attracting needed capital Mr Stilling allowed CMC a business risk premiumof 10 percent Therefore based on Mr Stilling s analysis Hearing Counseltake the position that the total appropriate adjustment to the ten year averagerate ofreturn on equity for non financial corporations for business and financialrisk should be 15 percent for TMT

Another factor to be considered when determining the appropriateness oftheten year average return on equity as an indicator of a fair return is the trendin money costs during the period Information on the current and historical cost

Page 206: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

192 FEDERAL MARITIME COMMISSION

of money indicatea whether the ten year average return on equity is too conser

vative forthe average firm which must compete in the money market for equityfunds Adjustments to the ten year average return on equity to account forcurrent trends and cost of money should therefore be reflected in the return

that any regulated firm such as TMT would be permitted to earn if it was in

a similar risk category as an average firmMr Stilling s analysis of current trends and the cost of money showed that

a time series analysis underestimates the cost of capital and therefore an

upwards adjustment to the average rate of return is necessary Mr Stillingfound that currently money costs are significantly higher than they have been

during the most recent ten year period Mr Stilling s conclusions are based on

the fact that current returns on equity are 2 percent higher than the ten year

average average 1978 corporate bond yields were 076 percent above theten year average and the average 1978 discount rate was15percent above theten year average

To the extent that the use of average earnings data for historical periods is

underestimated and based on the above analysis of the high cost of attractingcapital Mr Stilling concluded that a 15 percent adjustment should be at

tached to the ten year average rate of return on equity to bring TMTs return

up to a reasonable level which will account for current financial trendsGiven all of the above average risk conditions Mr Stilling concluded that

TMT or CMC should be entitled to a rate of return on equity which is

30 percent higher than the ten year average for non financial U S corporations of 12 8 percent On that basis the reasonable return on equity that TMTshould be allowed to earn for the projected year March 1979 Apri11980 is15 8 percent A 15 8 percent return on equity will give TMT the opportunityto earn a rate of return which is higher than that actually earned by nearly70 percent ofthose U S industries analyzed by Standard Poors for 1977

TMTs projected rate of return on equity forthe forecast year is 16 15 percent Considering the degree of judgment necessarily involved in both attempting to predict future business results and in determining whatis within the zone

of reasonableness it believes it cannot fairly be concluded that a rate of return

is excessive which is barely threetenths ofa percentage point higher than one

expert s judgment of what is fairWhile TMTbelieves a higher rate of return would indeed be reasonable it

does not believe itwould be productive here to continue that theoretical contro

versy particularly since the forecast results are themselves based upon the

similarly inexact science of predicting the future Accordingly TMT con

cedes to the staffs conclusion that 15 8 percent would be a reasonably allowable rate of return on equity for TMT

In consideration of the foregoing it is concluded that the record hereinestablishes that a return on equity to TMT in the zone of 15 8 1615 percentwould not be excessive in comparison to other industries facing similar businessand financial risk

It is further concluded that the record herein establishes that if TMTs netrevenue projections are accepted the return on equity to TMT would not

exceed the zone of reasonableness and would not be excessive

Page 207: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES 193

It is further concluded that it cannot be determined on this record whetheror not the return on equity to TMT would exceed the zone of reasonableness

because TMT has not met its burden of proof on this issue and no reliable

projection of TMT s net revenues can be made 7

II

We now proceed to a consideration of the allocation of line haul expenses and

division of assets between TMT and Gulf Caribbean Marine Lines GCML

both subsidiaries of Crowley Maritime Corporation CMC for tandem bargetowing services between Us Gulf Coast ports and Puerto Rico

In the US Gulf Coast Puerto Rican trade between Lake Charles Louisi

ana and San Juan PuertoRico tugs are used by TMT to tandem tow aTMT

barge and a GCML barge an affiliate ofTMT and both subsidiaries of CMC

The TMT barge sails only from Lake Charles to San Juan whereas the GCML

barge calls at other ports on the Gulf Coast and Puerto Rico and includes some

foreign destinations However GCML employs its own tugs while loading and

discharging cargo to move its barges among the various other ports it serves

For the projected year s March I979 April 1980 allocation ofexpense and

division of assets for the tugs used in the tandem towing service between Lake

Charles and San Juan TMT employed an allocation based on a time formula

for a round trip voyage TMT s method allocated 50 percent of the actual

steaming time in a round trip voyage to each respective carrierand 100 percentof the remaining time not under tandem tow to TMT On this basis TMTasserts that this results in a 60 40 allocation ratio to be applied on an annual

basis to TMT and GCML respectively 8 It is TMTs position that this time

formula is based on benefits received and is a reasonable method of allocation

for expenses and assets in the tandem tow service

Hearing Counsel disagree with the use of a time formula allocation for the

tandem tow expenses and assets They contend that a volume method of

allocation should be employed and that such method is required by G O II

The principles set out in G O II prescribe allocation of expense and division

of assets on a volume basis Under the requirements of G O II direct vessel

expenses are accumulated for all voyages in the Service and where allocation

is necessary allocated to the Trade on a revenue ton mile relationship which

reflects volume 46 C F R 512 7 cX2 The volume principle of allocation is

carried through G O II and in particular to the Vessel Operating ExpenseVOE summary which provides operating results and allocations to the Trade

based on a revenue ton mile relationship where there is simultaneous carriageof other cargo 46 C F R 512 7 c 3 A vessel day allocation is prescribedby G O II only in those cases of cargo vessels employed in the Service for less

1See discussion infra for full development of issue of revenue projections

TMTbased its time formula on It twentyone day round tripvoyage between Lake Charles and San Juan during which sixteen

days eight days each direction lutlactual steaming time During the remaining five days the tugstayswith only the TMT bargeThirteen of the twentyone days are allocated to TMT and eight days are aUocatcd to GCML thus producing TMTs 60 40ratio

Page 208: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

194 FEDERAL MARITIME COMMISSION

than the entire reporting period and this provision argues Hearing Counsel is

inapplicable to the tandem barge towing serviceMr Coleman FMC staff Financial Analyst using the volume formula

principle of G O II employed a cargo cube allocation for line haul expensesand division of assets for the tandem tow portion of a round trip voyagebetween Lake Charles and San Juan Mr Coleman s cargo cube allocation isbased on the tonnage of cargo carried on TMTs and GCML s respectivebarges during the tandem tow portion of a round trip voyage During the

period when the barges were not in tandem tow and only a TMT barge is

towed or during lay up time expenses and assets are allocated on a revenue ton

mile relationship Calculation of this allocation by Mr Coleman produced a

ratio of 63 7 percent for TMT and 36 3 percent for GCMLThe Commission has upheld the use of avolume allocation over a daily time

allocation for vessel expenses In Alcoa Steamship Co Inc General Increase

in Rates in the Atlantic Gulf Puerto Rico Trade 9 F M C 220 1966 a

principal issue was a determination of a reasonable allocation ofvessel expensesto the Puerto Rican common carrier service of Alcoa Steamship Co IncAlcoa In general Alcoa allocated vessel expenses between its southbound

common carrierservice and its northbound contractservice on the basis ofdaysoperated in each service The Commission found that the ton mile methodmore closely approximated the assignable costs ofAlcoa to its regulated serviceand should be employed as the proper method of computing vessel expensesThe Commission stated in pertinent part that

The vesselcfay basis although superficially appealing suffers from many built in faults

The benefit derived from a transportation service is that cargo tonnage is transported over

distance miles to its receiver As stated in a recent and definitive study The product which the

transportation industry sells is the ton mile in freight service This has often been recognizedby this Commission and its predecessors As we noted in Allamlc Gulf Puerlo Rico GeneralIncrease 7 F M C 87 98 1962 The basic factors contributing to vessel operating expensesare the tonnage and distance carried

The ton milemethod is proper because we believe it fairly allocates expenses which shouldbe borne by users in proportion to amount of their tonnage carried9 F M C at 231 233

The Commission further held that in those instances of unemployed legs ofa voyage where no cargo is carried the same volume method of allocation

should be used The Commission statedBallast leg and positioning leg days also should be allocated on the ton mile basis An allempttoallocate such days on a vessel day basis shows another basic flaw in that method the greatpossibility for arbitrariness an sicl inconsistent positions9 F M C at 232

TMT argues that the concept of benefits received should not be restrictedto cargo carried It believes that a carrier receives a benefit when its barge istowed from point topoint irrespective of the amount of cargo carried It con

tends that the GCML barge which rarely carries any cargo northboundwould under Hearing Counsels method receive the benefit of towage back to

Lake Charles and bear none of the expenses of that towage TMT says its

Page 209: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES 195

method which is directly related to the time the barges are under tandem towdoes not permit such an inequitable result and finds direct support in section512 7 b I i b of G O II TMT claims that from the standpoint of the realworld it is highly unlikely that a prudent carrier would enter into a business

arrangement with a second independent carrier to share the expenses ofa jointtow based upon respective cargo volume for the poorer the fortunes of thesecond carrier the greater would be the first carrier s expenses which he wouldthus be powerless to control The result should be no different where thecarriers happen to be affiliated

Section 512 3 g of G O II permits other methods of allocation of expensesin the G O II statement in those instances where a volume method would

produce unreasonable results In this case however the cargo cube allocationmethod fairly reflects the expenses and assets of the tandem barge towingservice and will not therefore create unreasonable results Following what

Hearing Counsel characterized as a benefits received principle in the case ofthe tandem barge towing service it is more reasonable to conclude that the

company which carries the greater amount of cargo receives the greaterbenefit This benefit is reflected in Mr Coleman s cargo cube allocation as itis based on volume Absent the volume principle underlying G O II TMTs

time formula allocation could be regarded as based on benefits received Butas between what must be regarded as a cornerstone principle of G O II andanother principle of allocation the volumeoriented allocation underlyingG O II must be utilized in preference to a timeoriented allocation

For the foregoing reasons it is concluded and found that the volume formulaset forth by witness Coleman should be adopted for purposes ofdetermining theallocation of expenses and division ofassets between TMT and GCML for thetandem barge towing service

III

Why is there a projected increase in revenue for the trade despite a decreasingvolume of cargo carried for TMTs projected period of April I 1979 to

March 31 1980 as compared to TMTs actual period of December I 1977to November 30 1978

The ultimate issue which must bedetermined by the Commission is whetherthe rate increase is just and reasonable One cannot predict with exactitude theamount of revenue that a particular set of rates will produce However basedon known facts and reasoned projections it is possible to set rates which can

be expected to produce sufficient revenues to equal the cost of service 9

After ascertaining what rate of return is reasonable Commission IssueNo I it is necessary to determine whether the rates to be charged will achievethat return That determination in turn can only be reached by ascertainingwhat revenues can be anticipated And revenue anticipation in its turn re

Thecost of service is defined to equal the sum of operating expenses depreciation expense taxes and a reasonable return on

the net valuation of property Garfield and W Lovejoy Public Utility Economics 1964 at 44

Page 210: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

196 FEDERAL MARITIME COMMISSION

quires a knowledge of rates to be charged times the volume 10 Qf cargo to becarried Commission Issue No 3

The record establishes that a return of 15 8 16 1 percent on equity is a

resonable return to TMT The question then remaining is wi1lthe rate increaseresult in such return

TMTs original revenue and revenue ton projections for the test year are

found on Schedule V Exhibit 2 The Schedule was originally prepared byDonald C O Malley Jr Director of Tariff and Regulation Affairs for the

Caribbean Division ofCrowley Maritime Corporation sometime after management decided to seek a general rate increase

There is no evidence as to how CMC originally determined a forecast of

revenue of 48 792 000 for TMT which in turn it contends results from the

imposition ofa 5 percent general rate increase No witness appearing on behalfof TMT could testify as to the basis or rationale by which the 48 792 000 was

first arrived at

The record establishes that Mr O Malley was given a projected total reve

nue figure of 48 792 000 from the forecasted budget which he understood

would be the bottom line revenue figure on Schedule V However neither

Mr O Malley nor Mr Roush TMT s other witness took any part in the

preparation of the forecast budget for TMT Thus no witness could explainhow the management of TMT arrived at the revenue figure of 48 792 000

which it is claimed will result from TMTs general rate increase of 5 percentAfter obtaining the total revenue figure Mr O Malley went to work to

establish the rest of the figures shown on Schedule V Exhibit 2 From a

computer run he obtained the historic revenue for the fifteen leading com

modities He then adjusted the revenue figures to account for shifts in cargo

increased competition and the rate increase Mr O Malley could not rememberhow hedetermined or arrived at the actual amount of the adjustments he madeand thus the reasonableness of those adjustments are unknown After arrivingat a total revenue figure for the fifteen leading commodities Mr O Malley then

simply subtracted this figure from the 48 792 000 total in order to obtain a

revenue figure for Other cargoAfter setting forth the adjusted revenue figures Mr O Malley then calcu

lated the revenue tons ofeach ofthe fifteen commodity breakdowns Again as

with his revenue adjustments Mr O Malley could not remember how he didit Arithmetic calculations seem to suggest that he divided historic averagerevenue per ton for each of the fifteen leading commodities adjusted for theincrease into the total projected revenue for each commodity

1

Although the method by which TMT actually calculated the revenue tons

shown on Schedule V Exhibit 2 is unclear the record establishes that the

10 In fate desiln carlO mix is an intolral 81pect orvolume

II A formula which eonrorms to the O Malley raults i as follows

T R divided by 105 X R rwhere T ilthe projected revenue toonale ftJUIC

R it the projected revenue amount fiaurcr is the historical revenue tonnage ftJUIC and

R is tho historical reyenue amount ftJUICThe 1 05 factor represents the 5 rate increase

Page 211: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES 197

management of TMT does not make forecasts of future volumes of cargo interms of tonnage Rather it forecasts in terms of revenue Whether or not last

year s average rate per ton for a given commodity will approximate this year s

depends in part on whether shippers tender the same size shipments To

complicate matters carriers regularly change the minimum quantity requirements for a given trade Rate adjustments may also affect the size of shipmentstendered Thus the historic average revenue per ton for a given commodityduring a past year may not be necessarily related to the average revenue perton for a future year The problems in using historic average revenue per ton

increase in the case of the calculation for Other cargo There many com

modities make up the average and the mix of commodities may change from

year to year based on shifts in cargo competition and rate increases In shortthe commodity mix for Other cargo is affected by all of the factors whichMr O Malley considered in adjusting the revenue figures for the fifteen leadingcommodities and compounded by the larger number of commodities involvedHence TMT s correction to the revenue tons attributable to Other cargobased on historic average revenue ton cannot be relied on

The consequences of TMTs method of calculating projected revenue tons isof crucial importance in this proceeding because allocations in the Exhibitswhich form so great a part of the record are based on TMTs projection ofrevenue tons 1 2

Due to the weakness inherent in TMT s method ofcalculating revenue tons

Hearing Counsel and GVI contend that these Exhibits are not reliable indicators of TMT s projected financial condition and cannot form the basis of a

Commission decision Because of the inherent flaws in these Exhibits they saythe Commission does not have a record before it from which it can concludethat the rates of TMT are just and reasonable

TMT disputes that its revenue forecasts or information in support thereof isdeficient or that it in any way has failed to furnish information timely

TMT asserts that the commodity forecast set forth in Schedule V is not

prepared by TMT for any business purpose other than to comply with the

requirements of G O 11 In connection with the preparation of the originalforecast J3

those who prepared it were given a marketing department budget of

48 792 000 revenue for the twelve months ended March 31 1980 14 They then

proceeded to determine because TMT says it was required by G O 11 their

best estimate of how much of that 48 792 000 would be derived from each of

the fifteen leading commodities carried and how many revenue tons of each

would be carried Starting with historical data showing the actual revenue and

tonnage for each of the fifteen those data were adjusted to reflect their view

after further consultation with marketing personnel of the future prospects as

llt Exhibit 2 Forecast April I 1979 through March 31 1980

2 Exhibit 5 Analysis of Schedule V TMT Projected Year April I 1919 through March 31 1980

3 Exhibit 7 Forecast April I 1979 through March 31 1980

4 Exhibit 8 Revised Computation of Return on Equity5 Exhibit 10 Schedule I Testimony of Thomas J Stilling Revised Computation of Return on Equity6 Exhibit 11 Offer of Proof

HEx 2

14TMT Brief at 9 10 This revenue forecast made prior to any tonnage analysis is the basis for Hcaring Counsel and GVI

contention of unreliability

Page 212: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

198 FEDERAL MARITIME COMMISSION

to each commodity Exhibit 5 shows in general what factors entered into the

adjustments resulting in theditrerences between the actual dollar and tonnagefigures on Schedule V of Exhibit I and the forecast dol1ar and tonnage figureson Schedule V of Exhibit 2 for each of the fifteen leading commodities

TMT proceeded as fol1ows to determine the remaining other dol1ar and

tonnage figures The revenue adjustments for the fifteen leading commoditiesresulted in an aggregate of 27 580 588 projected revenue for those com

modities which when subtracted from the total marketing department budgetof 48 792 000 left a remainder of 21 211 412 revenue which by definitionwouldcome from al1 other commoditiescarried Having al10cated 21 211412to othercommodities TMT then computed the corresponding tonnage figurenecessary to realize the dol1ars The method employed is set forth on page 2 ofExhibit 5 Marketing personnel predicted an increase of 41 607 tons and

corresponding revenue of 3 371 270 from increased carryings of liquid and

refrigerated cargo They also predicted a general shift decrease of about 20percent of the 1978 other revenue to TMTs through tariff and other tariffsSince the total other forecast revenue had been computed at 21 211 412 ofwhich 1 010 067 would result from the 5 percent rate increase and 3 371 270

by reason of increased revenue from liquid and reefer cargo there remained16 830 075 to account for This sum was4 016 997 less than and about 20

percent of the 1978 actual other revenue It was then accounted for byassuming that the shift to other tariffs would reduce the prior year s otherrevenue by 4 016997 Since the actual 1978 average revenue per ton for

other cargo was 2053 on the assumption that the cargo mix and otherfactors would not change this figure was divided into the 4016997 in orderto arrive at the corresponding volume reduction of 195 655 revenue tons

Subtraction of 195 655 from the 1978 actual other tonnage and addition ofthe expected increase of 41 607 tons of reefer and liquid cargo left a net

tonnage figure of 861 213 5

Hearing Counsel and GVI dispute TMTs rationaleand contend that TMT

was required to adduce additional evidence as to the details underlying TMTs

marketing department s budget and predictions TMT argues that the Commission never ordered an investigation into the reasonableness of TMTsprojections If it had done so TMT claims it would have been prepared to

present more detailed evidence relating to the marketing department s basis forits budget and predictions It never considered doing so however in view of theorder of investigation

One thing isclear from the record Schedule V was not used tocalculate the

potential revenue figure because the schedule was not even in existence at the

time the potential revenue budget was determined 16 The evidence in thisproceeding establishes that TMT built its rate design and cargo estimates to fit

and justify a predetermined revenue figure 17

I The change to thil861 2tJ fiaure hedule V to Exhibit 7 from 689 363 hedulo V to Exhibit 2 is the only correctionwhich TMT has made to its opcratins revenue foreaul

Tr 95 91

17 Neither Mr O Malley nor TMTs other witnMr Roush were involved inproparina the budpt thus tho record fails to

show how the budsetcd figure was determiHd

Page 213: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES

The testimony of record reveals that once the total projected revenue figurewas given to Mr O Malley by the accounting department he went back tohistorical revenue dollar and tonnage figures for each of the fifteen leadingcommodities as shown on TMTs computer From the historical revenue dollar

figures he proceeded to derive on a commodity by commodity basis the

projected revenue dollar figures While Mr O Malley did not remember anddid not testify how these individual projections were calculated TMT arguesthat it probably was an evaluation of competitive factors a shift to throughtariffs and the 5 percent rate increase which accounted for many of the

adjustments between historical and projected yearsThe revenue amount figure for the other cargo category wasthen backed

into Le it is a residual figure calculated by subtracting from the total budgeted figure 48 792 000 the subtotal of the revenue amounts for the topfifteen individual commodities 27 580 588 to arrive at 21 211412 forother cargo

Having projected revenues Mr O Malley then calculated the projectedtonnage figures for the fifteen leading commodities 18 While he did not remem

ber how this calculation was performed it appears from analysis of the figuresthat he used a mathematical formula based on the revenue per ton for each

commodity 19 Mr Roush used a similar revenueper ton calculation to deriveother revenue tons 20

TMT contends at least with regard to the fifteen individual commoditiesthat revenue amount projections were predicated on historical figures adjustedfor purported shifts to thru tariffs and competitive factors The record establishes that in any event the projection of other cargo and thus the totalrevenue ton figure have no basis in analysis Mr O Malley admitted it was

necessary to forecast for each commodity not just the top fifteen the effectthat shifts to thru tariffs andcompetition will have on projected cargo becausethese factors affect each commodity differently but he did not make individualforecasts 21 rather a flat percentage was applied to the other cargo categoryand even the details ofthis calculation are not revealed in the record Thus at

least with regard to the other category and the total revenue tons the cargo

projections can be traced directly back to the predetermined budgeted totalrevenue amount figure which itself had no basis on volume but was forecastbefore volumes were ever considered Hence it is concluded that from theresidual nature of the other revenue amount figure and the subsequentcalculation of the other revenue ton figure that marketing information andknown facts were not the basis for establishing the cargo projection

To support its revenue dollar projection and ultimate rate of return TMT

should have analyzed each commodity individually in terms ofcargo shifts andthe competitive situation This analysis should have been used to arrive at

projected tons

I See Schedule v of Exhibits 2 and 7

IFn 11 supra

20 See Exhibits 5 and 7 Schedule V

11 Refrigerated cargo and tank trailers were apparently the only exception Exhibit 5 at 2 nole 2 Tr 49 50 83 138

199

Page 214: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

200 FEDERAL MARITIME COMMISSION

If this had been done tariff rates could then have been applied to the tonnage

figure for the respective commodities to determine projected revenue for every

commodity Then the sum of the individual revenue figures would have pro

duced a reasoned supportable total figure for revenue Rather TMT pro

ceeded as outlined above and then produced Exhibit 5 as an after thefact

justification of the resultAssuming that with the rate increase total revenues would not exceed

S48 792 OOO because of lower cargo volume and thus that the return to TMTwould not begreater than the 15 8 16 15 percent deemed proper TMT has theburden of establishing by competent evidence those factors which it claimed

would cause tonnage decreasesA prime factor that TMT cites22 as the basis for decreased tonnage

projections is a shift to the socalled thru tariffs and other tariffs However Mr

O Malley who prepared the forecast never was aware of the percentage of

cargo in the subject trade which moved on the thru tariffs nor did he utilize

any historical data or any kind of data whatsoever to forecast the purportedshifts of cargo to these tariffs The following quotation from the record is

illustrative

Q Mr OMalley how did you determine the percentage shift to the through tar1ftand the other

tariffs if you were unaware of the amount of traffic going to those tarlfts

A This is a forecast and I was theoretically forecasting how much I thought would be shiftingin the forecast year I have no idea what additional cargo will be added to those new tarlfts in that

year

Q Was there any data upon which you baaed that forecast

A No

It is concluded that TMTs assertion that part of the alleged decrease in

volume was due to a shift to thru tariffs and other tariffs is not based on

historical data nor does it have any other factual support in the record It

should also be noted that the other major factor asserted by TMT as con

tributing to decreased tonnage namely competition also is not supported on

the record by any specific figures or calculations To the contrary althoughTMT contends that its cargo volume will decrease in the projected year

24 the

record indicates that its volume and thus its revenue may well increaseTMTs market share in the Mainland Puerto Rico trade has increased every

year since it entered the trade from 10 4 percent in 1975 to 17 7 percent in1978 23 and Mr Roush expects that its market share will be increased 26 Unlessthere is a decrease in overall traffic volume by all carriers to Puerto RicoTMTs total cargo will probably increase rather than iecrease There is no

evidence that the Puerto Rican trade will decrease in volume 27

21Tr 101 119 Exhibit 5

llTr 124 125

2 Primarily by rClllOll of carlO shifting to thru terift1 See ditcuuion IUpra

2l Exhibit 10 at II

16Tr 175

nMr Roush tcIliftcd IIto TMT belief in the potential of that Iervice and implied total volume would if not increase not

decrease Tr 175

Page 215: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES 201

In addition to the unreliability of the projected revenue as determined byTMTs methodology another matter must be mentioned as further com

pounding the difficulty and dilemma of the Commission28 in attempting to

determine whether the rate increase is just and reasonable

Although TMT submitted anumber ofeleventh hour corrections HearingCounsel claim two stand out as being particularly unfair to the other partiesThese are the revenue tonnage recalculation for Other cargo appearingon page 2 of Exhibit 7 and the figure for line haul expense appearing in Exhibit II

By a telephone conversation of June 5 1979 between Mr Roush and

Mr Coleman and letter dated June 6 1979 correcting TMT s direct case

Mr Roush supplied a new total line haul expense figure of 4 942 610 and an

allocation of 2 965 607 to TMT and 1 977 003 to GCML which produceda 60 40 percent time allocation Mr Coleman used the total of 4 942 610 inhis testimony which he identified as line haul expense Although Mr Coleman s testimony was served on June 12 1979 TMT waited until the hearingbefore announcing that the 4 942610 figure was not the line haul expensebut included other expenses as well Ifthere was a misunderstanding over the

4 942 610 it should have been resolved as soon as TMT received Mr Cole

man s testimony TMT hardly needed to cross examine Mr Coleman on the4942 61O it was supplied by TMT in the first placeThe projected revenue tons for Other cargo provides another example of

an eleventh hour correction which could and should have been made weeksbefore the hearing

Mr Coleman as part of hisregular function in connection with the 5 percentgeneral rate increase performed a complete analysis ofthe data in TMTs G O

II statements both actual and forecasted In the process of this analysis he

calculated the average revenue per ton for all commodity line items includ

ing Other cargo on Schedule V of TMT s projected G O II statement

Mr Coleman calculated that the total revenue per ton increased from TMT s

actual year Exhibit I to the projected year Exhibit 2 by 23 percent and that

in the Other cargo category alone revenue per ton increased approximately49 percent

On three separate occasions Mr Coleman requested Mr Craig Wallace of

CMC to explain why revenue per ton on individual line items on TMTs

projected Schedule V Exhibit 2 increased from TMTs actual Schedule V

Exhibit I on the average of about 5 percent whereas the Other cargo

category produced a 49 percent increase resulting in an overall increase of

23 percentIn response to a telephone inquiry of February 9 1979 by Mr Coleman as

to why revenue tons increased 23 percent Mr Wallace responded that TMT

would be carrying higher rated liquid tank cargo whichis a low tonnage cargoIn response to a telephone inquiry of March 2 1979 by Mr Coleman as to

whether TMT included the general rate increase in its projections Mr Wal

lace responded yes and further that the 5 94 percent increase in revenue is the

result of the compounding effect of applying the 5 percent general increase a

l Viewed in the light of the lime constraints imposed by P L 95 475

Page 216: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

202 FEDERAL MARITIME COMMISSION

23 percent increase in revenue per ton offset by a 13 88 decrease in revenue

tons carried The increase in revenue per ton is principally affected by Othercargo whichconsists of liquid or tank cargo which is low in tonnage and carriedat a higher rate

In response to Mr Newton Frank Supervisory Accountant Federal Maritime Commission on May 22 1979 regarding TMTs decrease in projectedrevenue tons and increase in revenue Mr Wallace responded that tonnage was

down due to the factthat more cargo wasbeing carried under ICC tariffs MrWallace further responded that the revenue in Other cargo increased48 percent 38 percent ofwhich was due to more reefer and special cargo whichis high rated and low in tons and the remaining 10 percent due to the projectedmix in quantities

On May 22 1979 Mr Coleman called Mr Wallace regarding the con

flicting information given Mr Frank as compared to previous conversationsregarding the increase in revenue per ton and decrease in revenue tons

Mr Wallace stated that the 48 percent increase in revenue referred to was therevenue per ton increase of the total of Other cargo and that in addition to

the increase in tank cargo there is a projected increase in reefer cargo whichhe may have forgotten to mention earlier

The record amply demonstrates thatstatf inquiries regarding the increasedrevenue despite decreasing tonnage specifically focused on Other cargoMr Wallace understood staff interest by explaining that the apparent anomalywasdue to the increase in reefer and liquid or tank cargo which comports withthe reason which appears in connection with Other cargo on TMTs Exhibit5 There is no evidence that Mr Wallace was not talking about Other cargowhen he made the observation Indeed the only commodity in the fifteenleading commodities which showed a drop in tonnage coupled with IIn increasein revenue was automobiles It is concluded that thestatf repeatedly questionedthe projected revenue tonnage for Other cargo and that TMT was aware of

staffs concern

Despite repeated questions TMT did not recalculate the figure until threeor four days before the hearing Apart from the merits of the recalculationtiming of the correction is critical to the Commission s ability to consider thelawfulness of the rate increase

The Commission in supporting enactment of Public Law 95 475 was ex

tremely concerned about the time elements inherent in the development of a

rate case The testimony of Vice Chairman Moakley to the Senate Subcommitteeon Merchant Marine and Tourism focused on this issue In outlining thechanges to the Commission s procedure that would be required in order to

comply with the legislation he made the following statement

First the financial data which the carrier is required to file simultaneously with the filing of its

general rate change will have to be essentially the evidence it will rely upon throughout theexpedited proceeding This means at the very least there can be no change in the test year usedby the carrier in support of the rate increase Otherwise the parties will not have a properoppartunlty to test the carrlers evidence 29

Emphasis added

To AWWM 1M InlefCOGJGIShipping Act 933 and For Oth Purpoul Hearings on HR6503Before Ihe Subcomm on

MtrchiUll MarIV and Tourism of Ihe SeMI CcmmlllH 011 Co m Science and rranspor lJtlon 95th Cong 2d Seas 17

l97S

Page 217: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PROPOSED GENERAL INCREASE IN RATES 203

This apparently provoked the following exchangeSENATOR INOUYE What makes you believe that you can cut a6 yearhearing period down to 180

days as H R 6503 would requireMr MOAKLEY I think I might take aquick look at what took place on the longest one whichwas the Matson case on which test years were changed the tinancial information was changedthe whole basis of the case was constantly changedNow we have clearly detined that at the time you apply for the rate increase you must submit thetinancial information which will be used to determine whether the rate is reasonable or unreason

able That will not change Therefore the opponent to it will have their finaneial information inthe beginning and be able to analyze

3Emphasis added

Vice Chairman Moakley was not alone in this view Chairman Daschbachaddressed a letter dated October 3 1978 to Senator Inouye in whichhe statedinter alia

Fourth carriers have often made major changes to their evidence after a rate case has begunincluding the changing of test years The legislative history of H R 6503 makes it clear that thecarrier must henceforth use the evidence submitted with its rate increase tilling sic to justify itsincrease and cannot make major changes or additions to that evidence which would require furtheranalyses cross examination and possibly rebuttal

The Committee Report S Rep No 1240 95th Cong 2d Sess 9 1978lends support to the views expressed by the Chairman and Vice Chairman

This is one of the very first rate proceedings to be conducted within the timeconstraints of P L 95 475 and despite ample time in which to furnish theinformation which would enable the Commission to properly consider thereasonableness of the increase we find the carrier shifting and changing dataat the last moment making it virtually impossible for staff and protestants toevaluate the new information or prepare for cross examination let alone drawrational conclusions relating thereto The statute places a high degree of re

sponsibility on the carrier seeking a rate increase to supply the information

necessary to permit expeditious considerationReview and consideration of the record in this proceeding leads to the

conclusion that the volume factor is not reasonably accurately ascertainable on

this record Not knowing the volume it is impossible to know whatthe revenues

will be and hence whether such revenues will yield a return which will be a

reasonable 15 8 16 1 percent or whether it will be something else

CONCLUSIONS

Section 3 b of the Intercoastal Shipping Act 1933 46 US C 845 b as

amended states that at any hearing the burden of proof to show that therate is just and reasonable shall be upon the carrier

The evidence in this proceeding fails of proof that the rate increase will not

result in an excessive return on equity to TMT in comparison to other industries facing similar risks

lOld at 18 19

II Id at 26

Page 218: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

204 FEDERAL MARITIME COMMISSION

The evidence in this proceeding establishes that the cargo cube allocation of

expensesand division of assets between TMT and GCML for the tandem bargetowing service is appropriate and in accordance with G O II

The evidence in this proceeding fails to establish any reasonably accurate

basis for determining volumes or revenues which may be anticipated by reason

of the rate increase

Inasmuch as the record does not reasonably establish volumes and revenues

which may be anticipated by the rate increase it cannot be determined whythere is a projected increase in revenue for the trade despite a projected decreas

ing volume of cargo to be carried for TMT s projected period of April I 1979

to March 31 1980 as compared to TMTs actual period of December I 1977

to November 30 1978

Because the evidence does not reasonably reflect anticipated volumes or

revenues or rate of return respondent TMT has failed its burden of proof of

showing that the rates in Supplement No Ito tariffFMC F No S are just andreasonable and otherwise lawful

Because respondent TMT has failed to establish that the rates in Supplement No I to tariff FMC F No S are just and reasonable they are found to

be not lawful

S STANLEY M LEVY

Administrative Law JudgeWASHINGTON D C

August 20 1979

Page 219: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

S FRANCIS C HURNEY

Secretary

FEDERAL MARITIME COMMISSION

DOCKET No 79 81

MARINE EXPRESS LINE S A

V

SEATRAIN INTERNATIONAL S A

NOTICE

October 3 979

Notice is given that no exceptions have been filed to the September 26 1979dismissal in this proceeding and the time within which the Commission coulddetermine to review has expired No such determination has been made and

accordingly that dismissal has become administratively final

mharris
Typewritten Text
205
Page 220: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

No 79 81

MARINE EXPRESS LINE S A

v

SEATRAIN INTERNATIONAL S A

DISMISSAL OF COMPLAINT

Finalized October 31 1979

By a Notice of Dismissal complainant Marine Express Lines has with

drawn its complaint in this proceeding Accordingly the proceeding is herebydismissed

5 JOHN E COGRAVE

Administrative Law Judge

September 26 1979

mharris
Typewritten Text
206
Page 221: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

v

FEDERAL MARITIME COMMISSION

DOCKET No 78 24

PACIFIC FREIGHT AUDIT INC

SEA LAND SERVICE INC

DOCKET No 78 25

PACIFIC FREIGHT AUDIT INC

v

AMERICAN PRESIDENT LINES LTD

ORDER PARTIALLY ADOPTING INITIAL DECISION

October 31 1979

These proceedings were initiated by separate complaints filed by Pacific

Freight Audit Inc PFA against Sea Land Service Inc and American President Lines Ltd APL alleging violations of sections 14 16 and 18 b 3 ofthe Shipping Act 1916 46 V S C 812 815 817 b 3 The proceedingswere subsequently consolidated due to the similarity of the issues presentedThe Trans Pacific Freight Conference of Japan Korea and the Commission s

Bureau of Hearing Counsel intervenedThe gravamen of the complaints is that Sea Land and APL improperly

refused to honor claims for refunds of ocean freight charges on shipmentswhich were allegedly delivered to OCP destinations Respondents interposedthe defenses that the claims were to a large extent duplicative and fraudulentand in any event were not tendered with proper documentation or other proofof OCP movements

Full evidentiary hearings were held and Administrative Law Judge William

Beasley Harris issued an Initial Decision finding that I Complainant had not

sustained its burden ofproof as to its allegations of violations of the ShippingAct and 2 Respondents were justified in refusing to pay the OCP claims

mharris
Typewritten Text
mharris
Typewritten Text
207
Page 222: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

208 FEDERAL MARITIME COMMISSION

However the Presiding Officer granted Complainant 60 additional days within

which to submit sufficient proof of these OCP movements to the RespondentsExceptions to the Presiding Officer s decision were filed by Respondents and

Hearing Counsel There were no replies to Exceptions

DISCUSSION

Sea Land argues that the Presiding Officer s decision is deficient in its

findings of fact necessary to support the conclusion that the Complainant has

failed to sustain its burden of proof and asks the Commission to find certain

specific facts I It also opposes allowing Complainant an additional 60 days to

substantiate its claims on the grounds that the claims have already been

adjudicated insufficient and this finding should in all fairness now be made

finalIn addition to citing certain alleged drafting errors in the Initial Decision2

APL objects to the 6Odayextension afforded Complainant on the grounds that

the Administrative Procedure Act requires decisions to make final determina

tions of the issues presented and that the ruling of the Presiding Officer would

require the Respondents to violate the terms of their tariffs 3

Hearing Counsel agrees with the Presiding Officer and Respondents that

Complainant has failed to sustain the validity oUts claims but objects to the

6Odayextension afforded Complainant on the ground that the Commission

should not as a matter of policy allow this proceeding to continue without a

final determinationAfter reviewing the full record in these proceedings the Commission agrees

with the ultimate conclusion of the Presiding Officer that Complainant failed

to sustain its burden of proof as to the validity of the subject OCP claims and

finds that the Initial Decision is sufficient to support that conclusion Much if

not all of the factual findings sought by Sea Land are expressly incorporatedin the Presiding Officer s decision and those not so incorporated are necessarilyincluded in the Initial Decision s more general findings 4

I Spcciftcally Sea Land urges tbat the Commluion find that a the shipmentlln qUelItion moved undertho proper port toport

tariff rates b such movements can be lublcqucntly rorated under an OCP rateupon fulftllin the necell8ry tarift roqurementac Sea Land tarilf aUowl proofof an OCP movement by mOlnlof anyone or lix typea of documontl but In any event mUlt

includeproof or the name orthc VCSIOI the port oforilin the ocean carriers bill oflacUR number lIle vtIICl voyap number the

final OCP and thedate of the actosl OCP n d PfA claim co a1ated IOlaly of ocean carrla bill of ladin with attached

inlandcarrier bill but no inland bill contain any ortbc relevent and lICC08Iary inform8tloni e cortaln documents u by PFA

to IUpport its clalml wcre duplicativefcommordally accepted Inventory controlllteml dlfforent than that used by PFA I

conlisnCCl wouki facilitatecompliance with the ltatod tariffrequirements and the lubjecrt tariffroquroments were not compliedwith in that no direct correlation between aparticular OQClan carrier movement arid a sublcqucnt inland ITlOYcrnent wasestablished

and that in faet nearly one in four claims included documents uaed In menthan one claim

2 APLnotel that a Mr James Mitchcl Presidont of PFA is characterized at one point in tho Initial Decision as acomplainantwhen in fact he is not a party to the procoedina b two claims 792 and 1097 wcro omitted in tho liltof claims aaainal APL

in which duplications were found c the word contact in the quote of IClCtIon 14 Fourth of the Shlppin Act lhouk read

contract d the reference to section 16 tint Initial Parqraph should be to the aeccmd Initial Paraaraph and lICCtion 16 Fint

These excoptions point out valid albeit minor erroll in the Initial DcciIlon and will be adaptedl APL ItatOl that ita tariffl require that OCP refund claims must be lubmitted within 90 days from the date the Onallot of

the bill of lading is forwarded

4Soe footROtc 2 Sea Land s proposed finding a is contained in lines 13 15 of pap II of tho Initial DcciIion b il

contained in par8lraph numbered lion page 7 c Is contained In peralraph numbered 22 on PIle 10 d iscontained in

paralraph numbered 17 on pag0l8 and9 e iacontaincd In paraarapha numbered 13 and 140nplp 7 and 8 f iscontainod

by implication in the third complete paralraph on pap 19 and 8 ill oontained in tho last parallaph on page 14 and in the

last paragraph on page 18

Page 223: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

S FRANCIS C HURNEY

Secretary

PACIFIC FREIGHT AUDIT INC V SEA LAND SERVICE INC 209

However the Commission agrees with Respondent that the Presiding Officererred in according Complainant an additional 60day period within which tosubmit to the Respondents further proof in support of its claims Complainanthas had every opportunity to prove the validity of its assertions and has simplyfailed to do so There is no reason equitable or otherwise to allow Complainantany further opportunity to prove its case Respondents have already beensubjected to lengthy proceedings and fairness dictates that these proceedingsnow become final Accordingly that part of the Initial Decision grantingComplainant an additional 60 days to submit proof in support of the subjectOCP claims will be reversed

One final matter needs be addressed In his Initial Decision the PresidingOfficer advised that the Complainant in these cases bore heavy burden ofproof While this statement is not necessarily inaccurate it does require some

clarification particularly in light of the Commission s recent decision in PanAmerican Health Organization v Moore McCormack Lines Inc InformalDocket No 3871 Report on Remand served September 12 1979 19 SRR762 There the Commission explained that references in earlier decisions to an

overcharge claimants heavy burden related to the difficulty in obtaining thenecessary evidence rather than to the weight to be given such evidence Theapplicable standard here is that the validity of the claims be established by a

preponderance of the evidence From the Commission s review of the recordit does not appear that the Presiding Officer imposed upon the Complainant inthese proceedings any burden other than to prove its allegations by such a

preponderanceTHEREFORE IT IS ORDERED That the Exceptions of Sea Land Ser

vice Inc American President Lines Ltd and the Commission s Bureau ofHearing Counsel are granted to the extent indicated in this Order and are inall other respects denied and

IT IS FURTHER ORDERED That the Initial Decision issued in theseproceedings is except to the extent modified by this Order adopted by theCommission and

IT IS FURTHER ORDERED That this proceeding is discontinued

By the Commission

Page 224: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

No 78 24

PACIFIC FREIGHT AUDIT INC

v

SEA LAND SERVICES INC

No 78 25

PACIFIC FREIGHT AUDIT INC

v

AMERICAN PRESIDENT LINES LTD

Partially Adopted October 31 1979

Although the complainant has failed to meet the heavy burden of proofnecessary to sustain its case

and relief is denied the complainant is given 60 days from the date hereof within which to

offer to respondents back up documents and affidavits that will warrant payment of OCP

refundsThis consolidated proceeding and each docket No 78 24 and 78 25 be and hereby are respectively

discontinued

William H Carler of Carter Monkman and Thomas W McLaughlin for complainant Pacific

Freight Audit IncJ Donald Kenny of Kenny Finan for respondent American President Lines Ltd

John M Ridlon General Attorney Slephan T Lanelol Associate Counsel F A Fleischer

Registered Practitioner and Gary Ferrulll Director Traffic and Regulatory Services for

respondent Sea Land Service IncCharnaSwedarsky John Robert Ewers and Paul J Koller Director and Deputy Director respec

tively of the Commission s Bureau of Hearing Counsel for intervenor Hearing Counsel

Charles F Warren and George A Quadrlno of Warren Associates P C for intervenor

Trans Pacific Freight Conference of Japan Korea and its Member Lines

mharris
Typewritten Text
mharris
Typewritten Text
210
Page 225: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PACIFIC FREIGHT AUDIT INC V SEA LAND SERVICE INC 211

INITIAL DECISION IOF WILLIAM BEASLEY HARRIS

ADMINISTRATIVE LAW JUDGE

Complaint against respondent Sea Land Service Inc Sea Land in FMCDocket No 78 24 was served June 19 1978 Complaint against respondentAmerican President Lines Ltd APL in FMC Docket No 78 25 was servedJune 20 1978 In each proceeding complaint is made of respondents allegedviolations ofsection 18 b 3 as well as sections 14 and 16 oftheShipping Act1916 Because they involve substantially thesame issues an order consolidatingthe two dockets was served June 22 1978 pursuant to Rule 148 of theCommission s Rules of Practice and Procedure 46 C F R 502 148

On July 5 1978 an Order was served granting enlargement of time re

quested by respondent Sea Land to July 24 1978 for parties to reply to the com

plaints herein Respondent APL served its Answer to the complaint July 101978 and a First Amended Answer on July 11 1978 Respondent Sea Landserved its reply to the complaint July 21 1978

Intervention herein wasgranted to 1 The Trans Pacific Freight Conferenceof Japan Korea TPFCJ K and 2 Hearing Counsel

By order served August 15 1978 pursuant to Rule 94 ofthe Commission s

Rules ofPractice and Procedure 46 C F R 502 94 a prehearing conferenceWas set for Tuesday August 29 1978 At the request of the complainant fora postponement an order was served August 24 1978 granting postponementof the prehearing conference to September 26 1978 At the September 261978 prehearing conference the official stenographic transcript of which com

prised 52 pages hearings were set to commence December 12 1978 in LosAngeles California The commencement of hearing was rescheduled December 1 1978 to commence Wednesday January 10 1979 Hearings began inLos Angeles California on the latter date continued on January 11 and 121979 concluding on January 12 1979

At the hearings the following briefing schedule was developed1 Opening brief by complainants to be mailed on or before Tuesday Febru

ary 20 1979 Tr 464 467 4712 Reply briefs by respondents to be mailed on or before Tuesday March 20

1979 Id3 Closing briefby the complainant to be mailed on or before Friday April 20

1979 Tr 464 468 471

Complainant s opening brief served February 20 1979 was received Febru

ary 27 1979 Respondent APL s reply brief served March 27 1979 was re

ceived March 28 1979 Respondent Sea Land s reply brief served March 271979 was received March 29 1979 Intervenor Hearing Counsels reply briefwas served and received March 27 1979 Intervenor TPFCJ K and its mem

ber lines reply brief served and received March 27 1979 Complainant s

closing brief served April 26 1979 was received April 30 1979

I Thisdecision will become the decision ofthe Commission in the absence ofreview thereofby the Commission Rule 227 Rulesof Practice and Procedure 46 CF R 1502 227

Page 226: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

212 FEDERAL MARITIME COMMISSION

The complainant proposed seven findings of fact and fourconclusions of lawopening brief Respondent APL proposed twenty findings of fact Intervenor

Hearing Counsel proposed ninety four findings of fact and four conclusions oflaw Respondent Sea Land proposed fifty findings of fact and six conclusionsof law and Intervenor TPFCJ K proposed twenty four findings of fact Thesetotal 195 proposed findings of fact and fourteen conclusions of law All proposas and requests have been considered carefully and granted granted in substance or denied as evidenced herein by the facts found and decisions made

The official stenographic transcript of the hearing consists of three volumestotaling 475 pages Thus the transcript of the preheating conference andhearing total 527 pages Forty four 44 exhibits were identified of which two

were withdrawn Exhibits for identification Nos 10 and 42 one was not

offered No 36 All the rest were received in evidence It is from the transcriptof testimony and exhibits together with all papers and requests filed in theproceeding that the Presiding Administrative Law Judge finds the facts hereinafter and constitutes the exclusive record for this decision

FACTS

I During November of 1976 while in the employment of respondent Sea

Land as a sales representative complainant James Mitchell began filing claims

against Sea Landfor others for OCP refunds Tr 42 The said James Mitchell hadcome in contact with OCP claims onseveral occasions where Sea Landcustomers he wascalling on for Sea Land were filing or were attempting to filewith Sea Landclaims for OCP recovery and he assisted them in doing that Tr83 84 Sea Land upon discovering that James Mitchell represented or was

PFA terminated his services with Sea Land about November I 1977 Tr 43and stopped payments to PFA Tr 321

2 Witness James Mitchell testified that PFA is a California corporationthat was incorporated December IS 1977 also that PFA was operating priorto incorporation under that trade name Tr 23 thatit is a family businessTr 18 of which he is the president his father Eli T Mitchell is the vice

president his mother Marion Mitchell is the treasurer and his brother PerryMitchell is secretary of the corporation PFA he stated is engaged in thebusiness of performing freight audits for customers anf filing claims with car

riers for recovery of freight charges for customers Tr 17 18 PFA aside from

family members in 1977 and 1978 employed about five other persons Tr 333 In early November 1976 the first claims of PFA were made to APL

Tr 43 APL stopped paying OCP claims about the same time as Sea Land

4 The tariffs involved in this proceeding are

A Trans Pacific Freight Conference of Japan Korea Tariff No 35 FMCNo 6 Exh No 26 Agreement No ISO APL and Sea Land both are

members TPFCJ K publishes a port toport tariff in the EastboundJapan Korea U S Pacific Coast Trades including both local and over

land common point OCP rates

Page 227: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PACIFIC FREIGHT AUDIT INC V SEA LAND SERVICE INC 213

B Sea Land Service Inc TariffNo 245 A FMC No 138 Exh No 27from Ports in Hong Kong and Taiwan to United States Pacific CoastPorts named in Item 320 and Overland Common Points

C American President Lines Ltd Hong Kong Taiwan Freight TariffNo 5FMC No 67 Exh No 28 from Hong Kong and Taiwan to HonoluluHawaii and Pacific Coast Ports of the U S A

D Philippines North America American Conference Tariff FMC No 11

Agreement No 5600 APL and Sea Land both are members Each car

rier herein has on file an independent tariffunder the aegis of AgreementNo 10107 covering the Eastbound Hong Kong Taiwan Us PacificCoast Trade

5 Clients represented by PFA in this proceeding and the date of contract or

agreement between them are

a Kennington contract dated 2 2 77 Exh No 1b Silton Brothers contract dated 11 76 Exh No 7 5 31 78 and

7 10 78 Exh No 6c Sportsclothes Ltd Inc contract dated 6 1 78 and 7 14 78 Exh

No 4d American Pants World Trading Co contract dated 9 1 78 Exh

No 5

e K W International contract dated 3 3 77 by PFA and 3 16 77 byK W Exh No 9 contract dated 5 31 78 Exh No 8

f International Set contract dated 11 11 76 Does not now representthem Tr 19

g California Prime Inc contract dated 3 3 77 Exh No 3 Ceased to

operate on or about end of 1978 Tr 241

6 Exhibit No 25 is stipulated to contain the copies and are the claims made

by PFA to APL which are listed in the complaint Tr 73 747 Sea Land in its answer to the complaint admitted its address is 2150

Valdez Suite 1901 Oakland California 94666 that it is a corporation andcommon carrier by water engaged in the transportation ofcargoes for hire fromvarious ports in the Far East including Manila Hong Kong Busan Keelungand Kaohsuing to Long Beach California and as such is subject to the

provisions of the Shipping Act 1916 as amended and the applicable tariffSea Land describes itself as aU S flag common carrier by water in the foreigncommerce of the United States having its principal offices at Edison New

Jersey8 Sea Land also admitted in its answer to the complaint that it has

promptly processed and paid claims submitted by other freight audit companies for adjustment of ocean freight charges from local to OCP within 30 to

60 days of their submission and alleges that it also has processed and paidpromptly proper claims submitted by complainant within the same time framestated

9 APL in its answer to the complaint admits its address is 1950 FranklinStreet Oakland California 94612 that APL is a corporation organized and

existing under the laws of the State of Delaware APL is a common carrier by

Page 228: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

214 FEDERAL MARITIME COMMISSION

water subject to the Shipping Act 1916 as amended providing ocean trans

portation services between various ports in the FarEast and ports in the UnitedStates

10 APL in its answer admits that during the period set forth in the com

plaint it received claims from the complainant requesting adjustment offreightcharges from local freight rates to Overland Common Point OCP freightrates pursuant to applicable tariffs APL in its answer further admits that it has

refused to refund freight charges to the complainant where insufficeint or false

documentation has been presented to APL by claimant as support for an ad

justment in freight chargesII Generally cargo which is destined to OCP territories in conformity with

the rules published in each conference or carrier tariff is entitled to the lesserOCP rates OCP territory is defined in applicable tariff as all points in NorthDakota South Dakota Nebraska Colorado New Mexico and states east

thereof Exh 25 p 20 Official notice is taken that the Commission has saidO CP territory which territory may be described roughly as that part of the

United States east of the Rocky Mountains Investigation of Over and and

OCP Rates and Absorptions Docket No 65 31 12 F MC 184 187 196912 PFA s compensation from clients for recovery of OCP funds is based

solely on the amount of the refunds PFA is able to collect from ocean carriers

on behalf of its customers PFA retains 50 percent of all such refunds and re

mits the remainder to the shipper or consignee If the claim isdenied or ifPFA

decides not to submit a particular claim after review PFA receives no compensation from any source regardless of the time orexpense incurred Tr 220

13 It was stipulated between complainant and APL that the following list

of paid claim files were in fact paid by APL PFA Claim Nos 375 368 948

376 370 401 786 400 382 402 399 974 405 403 379 378 381 958 380369 951 950 949 947 862 and 952 a total of 26 files Tr 350 351 360361 363 Exh 37

14 There are 31 34 3 more added Tr 213 PFA claim numbers containedin the documents in Exhibit 25 duplication between submission to APL is noted

by a green tab Tr 194which complainant and APL stipulated contain

duplications of supporting documents Tr 196 The PFA claim numbers in

which one or more duplications have been found are 1021 1109 1110 1111

1128 1130 1020 1019 789 790 791 793 1002 1003 1004 1005 10061043 1044 1048 1049 1066 1079 1098 1099 1100 1359 1047 1033 1017

1508 1507 Tr 194 195

15 The claims for OCP refunds filed by PFA with Sea Land on behalf ofsix consignees were allocated among the consignees in the following amounts

American Pants CoInternational Set Inc

Kennington LtdK W InternationalSitton Bros Inc

Sportclothes Ltd Inc

27 claims42

295433211 II

3 531528 792 62

53 089 905 972 927 294 032 553 35

81 234 34

Page 229: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

American Pants CoCalifornia Prime Inc

Kennington LtdK W InternationalSilton Bros Inc

Sportclothes Ltd

1 claim1

16 claims79

II

9

2

47 6210341

3 089 20

15 663 792 299 03

3966221 599 67

PACIFIC FREIGHT AUDIT INC V SEA LAND SERVICE INC 215

The total number ofclaims submitted by PFA to Sea Land master file listing1 123 claims of which 450 are the subject of this action Tr 418

16 The claims for OCP refunds filed by PFA with APL on behalf of six

consignees are allocated in the following amounts

17 The documents submitted by PFA to the ocean carriers in support ofthe

claims the subject of this proceeding are a copy of the ocean bill of ladingcopies of allegedly relevant domestic bills of lading of freight bills togetherwith the information which had to be affixed to each of the domestic bills of

lading and PFAs cover sheets Tr 39 PFA does not keep copies ofthe claims

submitted with the exception of PFA s cover sheet Tr 40 which has vessel

voyage number ocean bill of lading number and the pounds PFA has a stampwhich places information as to the vessel the voyage number the ocean bill of

lading number and the port oforigin on the domestic bills of lading whichPFA

says the tariff requires Tr 12218 PFA claims for OCP refunds were for refunds of 100 95 or 90 of

the ocean lading quantity Tr 380 For example 16 claims were filed againstAPL as to Kennington Ltd 12 of the 16 claims were for 100 percent moves

to OCP of the remaining 4 none were below 90 Tr 352 Too in everyclaim as to Kennington Ltd all of the inland bills of lading for each claimwould have been time barred but for one inland bill of lading which waswithinthe time frame permitted under the tariff Tr 353

19 A representative of a claim submitted to Sea Land by PFA is Exhibit

No II The same documents would be submitted to APL Tr 58 The doc

uments comprise the claim and would ordinarily consist of cover sheet prepared by PFA ocean bill of lading domestic bills of lading referenced to the

ocean bill of lading Tr 5620 As in the caseof American Pants Tr 59 OCP rates can apply either

initially or after the fact This importer brings goods in at the OCP rate and

is in the position of having to provide proof of OCP movement to the carrier

to retain that rate The same proof is required in either instance Tr 59 60

21 Custom and practice of PFA as to OCP refunds

I meet with and work with people represented to obtain the necessarydocuments and information specifically ocean bills of lading or copies of same

and domestic bills of lading or freight bills for cargo which they subsequentlyship to OCP destinations

2 segregate the bills of lading into date order and destination whether OCP

or non OCP destination

3 matching commodities pounds of cargo moved cartons etc

Page 230: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

216 FEDERAL MARITIME COMMISSION

On that basis PFA submits claims to the carrier within the confines of the

tariff rule ofthe amount of time that can elapse that cargo can be warehousedbefore movement to OCP destination

A claim PFA sends the carriers would consist of an oceanbill of lading andtwo or three domestic bills of lading to maybe a hundred ormore in some cases

evidencing the OCP movement of imported cargoOn the domestic bills of lading PFA has to place information about the

vessel that imported the goods the bill of lading number the voyage number

of the vessel and the port of origin of the cargoClaims are basically tiled by weight Tr 33 34

22 Sea Land would require that the vessel and voyage number be identicalon the inland bill as well as the ocean bill if they were not the claim wouldbe rejected APL also would require customer s proof invoices or inland bills

stating the necessary facts such as vessel voyage weights and where it came

from etc or the claim would be denied Tr 319 332

23 Witness Mitchell stated that with each claim for an OCP refund he or

PFA submitted a PFA cover sheet the ocean bill of lading and domestic billsof lading This information where it appears in the inland carrier s bi1 oflading is a result of its being stamped on these bills by a stamp fabricated byPFA which stamp attaches to these bills a vessel name voyage number portof origin and ocean bill of lading number

DISCUSSION REASONS FINDINGS AND CONCLUSIONS

Hearing Counsel sees the big issue in this proceeding as whether the com

plainant on behalf of certain consignees has established pursuant to the

applicable tariff rules proof of movement to OCP territory of cargoes imported in an ocean common carrier so as to qualify for refund of monies for

ready adjustment of local freight rates to OCP rate It is Hearing Counsels

position that PFA has failed to introduce any evidence to sustain its burden of

proof as required by law and to establish with reasonable certainty the validityof its claim for OCP refunds

Intervenor TPFCJ Kargues that the history and development ofOCP rates

from their origin more than a hundred years ago has been thoroughly documented by the Commission in Investigation of Over and OCP Rates and Ab

sorptions Docket No 65 31 12 F M C 184 1969 TPFCJ K says that none

of the claims in this proceeding involved cargo transferred directly to an inland

carrier in all claims PFA is seeking a refund of the difference between the

local rates originally paid by its customers and lower OCP rates Before an

OCP refund can be paid the consignees or his agent must demonstrate that thegoods in question actually moved to a destination within the OCP territory in

accordance with all applicable tariff rules

TPFCJ K contends Brief at 17 that the documentation submitted by com

plainant allegedly to demonstrate OCP entitlement proves one and only one

fact Cargo described as wearing apparel was carried from warehouses in California to destinations in the OCP territories Complainant s documentationaccording to TPCFJ K does not establish that the cargo moving to QCP areas

Page 231: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PACIFIC FREIGHT AUDIT INC V SEA LAND SERVICE INC 217

had originally been carried 1 by any particular ocean carrier 2 under any

particular ocean bill of lading 3 in any particular vessel 4 at any particulartime or 5 from any particular origin Yet all of this information is essentialif OCP rates are properly to be applied

Respondent Sea Land Brief at 16 also contends that the complainant hasfailed to adduce any evidence appropriate to proving complainants case

Respondent APL contends Brief at 16 the complainant not only has failedto sustain the heavy burden of proof placed upon it but also has failed to

sustain the burden of proof under any measure whatsoeverAPL argues that the PFA case can be summarized as a group of ocean bills

of lading and domestic bills of lading which do nothing to support the com

plainant s case and the testimony of Mr Mitchell which indicates a total lackof effort on the part of PFA to properly support its claims

The complainant Closing Brief at 9 submits that it has established the

validity of each and every claim for OCP refunds initially submitted to re

spondents under applicable tariffs and has satisfied the heavy burden of prooftest set forth in Western Publishing Co v Hapag Lloyd Docket No 283113 SRR 16 17 May 4 1972 and Johnson Johnson v Prudential GraceLines Informal Docket Nos 303 F and 304 F 18 FMC 244 1975

The Presiding Administrative Law Judge in dealing with this issue of burden of proof first looked to the complaint in each docket The allegations in the

complaint in Docket No 78 24 as to respondent Sea Land and those in DocketNo 78 25 as to APL save for amounts are similar It is alleged that the

respondents Sea Land in Docket No 78 24 and APL in Docket No 78 25

conduct in refusing to pay complainant the difference between local and OCPrates on the claims submitted to respondents is unlawful and constitutes a

violation of the Shipping Act 1916 as amended section 18 b 3 and the

applicable tariff rules with regard to adjustment of freight rates from local to

OCP that complainants assignors have been subjected to the paymentof rates

for transportation of cargoes from ports in the Far East to Long Beach whichrates areunjustly discriminatory prejudicial and unreasonable all in violationof section 18 b 3 of the Shipping Act 1916 as amended and the applicabletariff Complainant alleges he is entitled to recover of Sea Land 81 352 88and of APL 21 599 67 in freight charges presently due complainant under the

applicable tariff Further it is alleged complainants business has and willcontinue to suffer loss ofgoodwill and has been damaged as to Sea Land in the

amount of 50 000 as to APL 25 000 by reason of respondents dilatoryconduct and unjustified and unreasonable refusal to refund freight adjustmentfrom local and OCP rates as mandated by applicable tariffs

Also complainant alleges that respondents have established over the yearlast past a pattern of unjustified unreasonable and unwarranted discrimination

against complainant in violation of the Shipping Act 1916 as amended

sections 14 and 16 for which complainant claims entitlement to receive from

respondent damages to complainant s business and loss of goodwill as to Sea

Land in the amount of 50 000 and as to APL in the amount of 25 000

The complainant seeks an order directing respondents to cease and desist

from the alleged violations of said act and tariffs and also pay to said com

Page 232: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

218 FEDERAL MARITIME COMMISSION

plainant by way of freight adjustment from local to OCP rates the amounts set

out aboveThe complainant in support of its case called the following witnesses

I James Mitchell the president PFA and an employee of Sea Land untilit was discovered that while in Sea Land s employ he represented others in

claims against Sea Land for OCP refunds This began in November 1976

Sea Land terminated his service there in November 1977 PFA kept no copiesof claims submitted Tr 39 but asserts a copy of the ocean bill of ladingcopies of relevant domestic bills of lading or freight bills together with infor

mation which had to be affixed to each domestic bill of lading along with a

PFA cover sheet was submitted He testified as to linkage necessary in OCPrefund claims Tr 173 if it is not possible to reestablish the link between theOCP the importation of the OCP movement PFA would have no alterna

tive but to decline an attempt to collect on either the original or the duplicate2 Arthur Ting employed as a manager by Daddy s Fashions Inc

Tr 25I3 Perry Spanos employed as importexport manager by Wallace Berry

Inc a dealer in toys and novelties Tr 2624 Earl Wayne Cox employed as an import clerk by Sanyo Electric Inc

Tr 2695 Phillip C Levin comptroller and secretary treasurer of Bardon Inc an

importer of mens clothing Tr 2776 Donald G Hermansen West Coast Pricing Manager Pacific Division

ofSea Land Tr 3127 Robert Bertagna corporate credit manager of APL Tr 329

The complainant then rested its case Tr 369APL in presenting its defense called the fol1owing witnesses

I Kenneth E Sivilich corporate control1er of Kennington Ltd Inc

2 Walter Weitzmann vice president of Silton Brothers Tr 399

3 Richard J Cohen Tr 41I vice president of operations for K W

International Tr 412 who distributes a basical1y ful1line of junior and misses

ladies sportswearSea Land called the following witnessesI Donald G Hermansen Sea Land s West Coast Purchasing Manager

Pacific Division Tr 379APL and Sea Land then rested as to each Tr 451None of the above gave any testimony whatsoever as to PFA s claim for loss

of goodwill and damages therefrom None of the witnesses including Mr

Mitchel1 reestablished the link between the importation and the OCP move

ment And as Mr Mitchel1 testified if it is not possible to do this PFA wouldhave no alternative but to decline an attempt to col1ect Could less be expectedfrom the trier of fact The Presiding Administrative Law Judge as the trierof fact herein finds and concludes that the complainant had a heavy burdenof proof in this proceeding espocial1y in view of the fact the goods had left thecarrier but has failed to meet that burden of proof The complainant kept no

copies of the proofs submitted for claims made for OCP refunds Further thepresident of PFA for example testifying as to Silton Claim 1013 was asked

Page 233: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PACIFIC FREIGHT AUDIT INC V SEA LAND SERVICE INC 219

to show rr 148 the method whereby PFA would take the ocean bill of ladingand identify inland bills of lading as referring to the same cargo that came in

on the vessel SS President Madison from Hong Kong This was a shipment of

100 percent moving OCP and the entire shipment stayed in Silton s warehousefor approximately eleven months before any of it was sent out

Mr Mitchell replied Tr 148 149

The best answer I could give you lacking a recollection of this claim having been put together is

that this national motor freight classification number that you see that they used to describe theircargo is the motor freight classification for wearing apparel which agrees in description with theocean bill of lading commodity description of men s nylon parkas

Clothing in and clothing out tells it does not amount to a conflict in my mind and if there was

a question at the time that claim was prepared wewould have verified the fact that it is in factthe same stuff

The Presiding Administrative Law Judge asked Tr 150

Actually your answer is as to this particular claim which is Silton s claim 1Ol3 you are unablenow looking at it to answer how a claim could be made that it had come in a particular vesselIs that correct

The witness Tr 150

I am unable to recall that claim out of a couple of thousand that we have prepared as to

JUDGE HARRIS Well I will put my question again From looking at this particular document thatis before you dealing with Silton claim 1013 you are unable simply by looking at this documentto tell how it was ascertained that the goods came in on the particular vessel Is that correct

THE WITNESS I can tell you that the method employed would have put us in touch with the

importer who could have given us the answer

JUDGE HARRIS Yes but looking at these documents really your answer is that you don t knowat this point by looking at these documents how it wasdetermined that a particular vessel broughtthese goods in and that then they went to an OCP point You can t tell us now by looking at thosedocuments

THE WITNESS I can t tell you no sir

JUDGE HARRIS But what you can tell is that the method that your company uses that you willask someone in Silton and they will tell you something about it and you put it together and yousay we can make an OCP claim on this basis

THE WITNESS Yes sir

JUDGE HARRIS That makes it clear to me I just wanted clear in the record how this is arrivedat Mr Kenny I hope I didn t interfere too much with your cross

MR KENNY No I appreciate the clarification

Every claim PFA would submit would have the cover sheet the ocean bill

of lading and domestic or inland bill of lading Tr 57 Exh No 11 is a typicalclaim folder And PFA stated Tr 176 PFA s system of identifying inland

bills of lading to shipments is not error free

As has been indicated above this record is void of any proof as to loss of

goodwill by the complainant as well as to any proof of damages therefor Anyrecovery by PFA against any respondent herein therefore is denied

The complainant alleges violation of the Act for failure to make adjustmentand settlement of claims Under section 14 Fourth c of the Shipping Act

1916 it is provided

Page 234: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

220 FEDERAL MARITIME COMMISSION

Sec 14 That no common carrier by water shall directly or indirectly in respeclto the trans

portation by water of passengers or property between a port of a State Territory District or

posseasion of the United States and any other such port or a port of a foreign country

Fourth Make any unfair or unjustly discriminatory contractwithany shipper baaed on the volumeof freight offered or unfairly treat or unjustly discriminate against any shipper in the matter ofa cargo space accommodations or other facilities due reqard being had for the proper loading

of the vessel and the available tonnage b the loading and landing of freight inproper conditionor c the adjustment and settlement of claims

The adjustment and settlement of claims was envisioned early on in these

proceedings The respondents at the prehearing conference promised upon

receipt ofback updocuments on the claims herein and their satisfactory reviw

of those claims payment of the claims would start immediately PrehearingTranscript at 24 This unfortunately did not happen Under the circumstancesof this case the Presiding Administrative Law Judgefinds and concludes the

respondents were justified in withholding payment of OCP refund requests in

view of the discovery of an employee of Sea Land processing OCP refundclaims against Sea Land and the matter of compliance with the tariff as to

eligibility for the OCP refund and the aforesaid lack of back up material

showing compliance with the tariff for OCP refund

The complainant in its closing brief contends p 7 that to have Mr Mitchell

prepared with back up documents and testimony on each and every claim andbill of lading would have been an impossible task straining the resources ofPFA to financial ruin and aggravating to the fullest extent possible aU PFAclients especiaUy where aU claims and supporting bills of lading are so clearlywithin the spirit as weU as precise wording of each tariff involved In the next

breath PFA contends it has established the validity ofeach and every claim forOCP refund initially submitted to respondents under applicable tariff The

Presiding Administrative Law Judge is not persuaded that the complainant has

done so or that it has met the heavy burden of proof necessary in such

circumstancesThe Presiding Administrative Law Judge cannot find and conclude under

the facts and circumstances of this proceeding that the complainant hasestab

lished the bona fides of the claims nor that the matter of duplication is not an

impeaching factor The complainant in its closing brief p 2 submits the

comparably minor amount ofduplication in terms ofnumber ofdocuments andactual dollar amount represented by duplicate documents should not and doesnot impeach the validityof all of PFA s claims To rule otherwise argues PFA

would be to aUow PFAs errors to deny innocent consignees from receivingsubstantial amounts of OCP refunds on bona fide claims

Thebona fides of the claims a matter at issue in this proceeding is and was

important yet the complainant did not present the consignees nor satisfactorydocumentation to prove such bona fides

The Shipping Act 1916 provides in

Sec 16 That it shall be unlawful for any shipper consignor consignee forwarder broker orother

person or any officer agent or employee thereof knowingly and willfully directly or indirectlyby means of false billing false classification false weighing false report of weight or by any other

Page 235: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

PACIFIC FREIGHT AUDIT INC V SEA LAND SERVICE INC 221

unjust or unfair device or means to obtain or attempt to obtain transportation by waterfor propertyat less than the rates or charges which would otherwise be applicable

Under the circumstances of this proceeding the complainant has failed to

prove that the respondents have violated this section ofthe Act or the followingsection of the Act

Sec l8 b 3 No common carrier by water in foreign commerce or conference of such carriersshall charge or demand or collect or receive a greater or less or different compensation for thetransportaion of property or for any service in connection therewith than the rates and chargeswhich are specified in its tariffs on file with the Commission and duly published and in effect atthetime 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

The complainant argues that only 24 04 of the total claims submitted to

respondent Sea Land 21 352 88 have some duplicates whichdollar amount

of these claims containing some duplicates equals 19 557 23 And of the

19 557 23 only 14 96 would be actual duplicate proof which amount equals6 837 21 The complainant argues that using a percentage approach74 515 69 of the claims submitted to the respondent Sea Land do not suffer

from duplication that if one assumes that the duplicates were only submitted

twice as is the case in the majority ofthe claims see Exhs 41 and 44 onehalf

of the amount ofduplication would bevalid leaving only onehalf of 6 837 21

to wit 3 418 61 as invalid

As has been indicated above the Presiding Administrative Law Judge is

unpersuaded by this argumentUnfortunately early on efforts failed to have the complainant present satis

factory and adequate proof that would require payment of OCP refunds

Similarly efforts to shorten the proceedings by the rise of representative sam

plings of claims made for OCP refundonly served to prove that proof is needed

to be presented as to every claim made herein especially in the absence of

agreement between the parties that such representative samples as were

presented and the proofs thereofprovided as answer that warrants payment of

OCP refundsThis casehas been in process over a year and in that time resolution between

the parties has not been achieved totally The matters brought to light as shown

in this decision have eliminated some considerations and better focused others

Further the complainant s argument referred to above that to have Mr

Mitchell PFA prepared with back up documents and testimony on each and

every claim and bill of lading would have been an impossible task straining the

resourcesof PFA to financial ruin and aggravating to the fullest extent possibleall PFA clients is lacking any proof in this record Litigation herein un

doubtedly has been costly to all despite the efforts herein to try to resolve this

matter in the least time possible and at the least cost possibleThis is all leading up to granting the complainant 60 days to do that which

they have not been able to do that is within 60 days to present to the re

spondents any and all claims in this proceeding with back up documents and

affidavits that the respondents upon review and checking are satisfied to payforthwith The Commission is to be kept fully informed ofany and all progress

Page 236: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

222 FEDERAL MARITIME COMMISSION

and payments At the end of this 6Oday period this proceeding will standdiscontinued

Upon consideration of aU the aforesaid the Presiding Administrative Law

Judge finds and concludes in addition to the findings and conclusions hereinbefore stated

1 The complainant has failed to meet the heavy burden ofproof necessaryto sustain its case

2 Reliefshould be denied and the complaints should be dismissed but the

complainant as noted above is given 60 days from the date of this decision to

submit back up documents and affidavits to prove any and aU claims it can

3 This proceeding should be discontinued at the end of the 6Oday periodWherefore it is ordered thatA Relief is denied except within the 6Oday period back up documents as

to any claims may be submitted to respondents for payment and if satisfactorybe paid by respondents

B The complaints in Docket No 78 24 and Docket No 78 25 be andhereby within 60 days of the date hereof are dismissed

C This consolidated proceeding and each Docket No 78 24 and No78 25 be and hereby within 60 days of the date hereof are respectivelydiscontinued

18 WILLIAM BEASLEY HARRIS

Administrative Law JudgeWASHINGTON D C

July 9 1979

Page 237: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

S FRANCIS C HURNEY

Secretary

FEDERAL MARITIME COMMISSION

INFORMAL DOCKET No 607 I

IDEAL Toy CORPORATION

v

ATLANTIC CONTAINER LINE

ORDER REMANDING PROCEEDING

October 3 1979

Ideal Toy Corporation filed this complaint alleging that Atlantic Container

Line charged it rates in excess of the applicable tariffon file with the Commis

sion On July 16 1979 Settlement Officer James F Carey issued a decision

dismissing Ideal Toy Corporation s complaint on the ground that the com

plainant had failed to meet its burden of proof The Commission determined

to review the Settlement Officer s decision

The record in this proceeding does not disclose the commodity description of

the tariff item applied nor does it reveal the description of the commoditiesactually shipped In order to assure a correct disposition of the complaint this

proceeding is being remanded to the Settlement Officer for further evidence

Specifically the Settlement Officer is directed to receive evidence showing the

commodity description of the tariff item applied to the shipments at issue and

the description of commodities actually shippedTHEREFORE IT IS ORDERED That this proceeding is remanded to the

Settlement Officer for the taking of additional evidence and the issuance of a

supplemental decision thereon andIT IS FURTHER ORDERED That such supplemental decision be ren

dered within 60 days of the date of this Order

By the Commission

By consent ofthe parties the proceeding was conducted under the Commission s informal docket procedures 46 CF R 502 301

et seq

mharris
Typewritten Text
223
Page 238: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

I

SPECIAL DocKET No 668

APPLICATION OF MAERSK LINE AGENCY FOR

THE BENEFIT OF MITSUI AND CoMPANY

ORDER ON REMAND

November 1 1979

This proceeding was instituted upon the application of Maersk Line Agencyfor permission to refund a portion of certain freight charges to Mitsui andCompany pursuant to section 18 b 3 of the Shipping Act 1916

The Administrative Law Judge rendered his Initial Decision on August 27

1979 conditioning ultimate approval of the application upon the submission ofevidence to the Commission establishing the date of the shipments in question

Although no exceptions were filed the Commission on its own motiondetermined to review the Initial Decision

Among that which must be submitted to support a request for refund or

waiver under section 18 b 3 of the Shipping Act 1916 is evidence establishing the dates of the shipments for which such authority is requested Withoutthe dates of the subject shipments it cannot be determined whethe the applicant has satisfied the 180 day statute of limitation imposed under section18 b 3 of the Act

It is the Presiding Officer s duty to marshall the evidence necessary to makea decision whether to grant or deny an application Should an applicant fail to

provide satisfactory evidence to sustain its burden of proof then the PresidingOfficer can require the submission of additional evidence before rendering an

Initial Decision If it is inappropriate to receive additional evidence and the

applicant has not met its burden of proof then the Presiding Officer shouldrender an initial decision denying the application It is inappropriate for the

Presiding Officer to render an Initial Decision conditioning approval of an

application upon the submission of evidence to the Commission

mharris
Typewritten Text
224226
Page 239: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPLICATION OF MAERSK LINE AGENCY 225

THEREFORE IT IS ORDERED That this proceeding is remanded to the

Presiding Officer for the receipt of evidence establishing the date of the shipments upon which the application is based and the issuance of a supplementalInitial Decision

By the Commission

S FRANCIS C HURNEY

Secretary

Page 240: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

ijI

FEDERAL MARITIME COMMISSION

iSPECIAL DocKET No 660

APPLICATION OF SEA LAND SERVICE INC FOR THE

BENEFIT OF BDP INTERNATIONAL INC AS AOENT FOR

CHAMPION INTERNATIONAL EXPORT CORPORATION

ORDER ADOPTING INITIAL DECISION

November 2 1979

This proceeding was instituted upon the application of Sea Land Service

Inc to refund a portion of certain freight charges collected from BDP Inter

national Inc and independent ocean freight forwarder as agent for ChampionInternational Export Corporation

Administrative Law Judge William Beasley Harris served his Initial Deci

sion on August 10 1979 granting Sea Lands application No exceptions were

filed but the Commission on its own motion determined to review the InitialDecision

The findings and conclusions of the Initial Decision are well founded andcorrect and are herein adopted However when as here authority is grantedto a carrier to refund freight charges to a freight forwarder acting as the agentfor a shipper the Commission must receive adequate assurances that therefund is paid over to the shipper

I The Commission is therefore requiring thesubmission of an affidavit from the agent certifying that it has remitted therefund to the shipper or if the remittance cannot or has not been made an

affidavit setting forth the reason or reasons thereforThe Commission will also require the freight forwarder to adjust the amount

of brokerage compensation it has received from the applicant Therefore con

temporaneous with its affidavit certifying that the refund has been paid to the

shipper BDP Internationa Inc shall certify that it has refunded to the applicant the excess brokerage compensation it has received by virtue of the ad

justed freight chargesTHEREFORE IT IS ORDERED That the Initial Decision issued in this

proceeding is adopted and made a part hereof and

1 Set Special Docket No537 538 539 Salentlne CoInc t al v Europe CQlUlaa LakerUM 20 FM C 542 1918

Special Docket No 5 19 Buckley cf Fors aJl Inc v Gulf European FRightAuocIa onJor Camhi LIM 20 F M C 343 1977

Page 241: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPLICATION OF SEA LAND SERVICE INC 227

IT IS FURTHER ORDERED That BDP International Inc certify to theCommission by filing an affidavit within 45 days of this Order either that it hasforwarded to Champion International Export Corporation the sum of

2 06540 or explaining why such remittance has not been made

IT IS FURTHER ORDERED That BDP International Inc certify to theCommission in detail that it has refunded a proportionate percentage of

brokerage compensation it has received for these shipments which was based

on a percentage of the total freight charges and

IT IS FURTHER ORDERED That Applicant promptly publish in its

appropriate tariff the following notice

Notice is given as required by the decision of the Federal Maritime Commission in SpecialDocket No 660 that effective December 14 1978 and continuing through April I 1979 inclusivethe rate on waxed paper to Guatemala and Honduras under Item 1090 Tariff No 283 F M CNo 161 trailerload rate is 82 00 per ton of 2 000 Ibs minimum of 37 000 Ibs

By the commission

S FRANCIS C HURNEY

Secretary

Page 242: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

SPECIAL DocKET No 660

ApPLICATION OF SEA LAND SERVICE INC

FOR THE BENEFIT OF BDP INTERNATIONAL INC

AS AOENT FOR CHAMPION INTERNATIONAL EXPORT CoRP

Adopted November 2 1979

Permission granted to refund 2065 40 portion of aggregate freight charges of 6 666 60

collected

INITIAL DECISION OF WILLIAM BEASLEY HARRIS

ADMINISTRATIVE LAW JUDGE

This is a special docket application by Sea Land Service Inc Sea Landacommon carrierby water in foreign commerce whichpublishes its own tariff

No 283 FMC No 161 on rates for transportation of freight from U S North

Atlantic Ports to Ports in Central America BDP Internationa Inc a freightforwarder FMC 1127 paid aggregate freight charges of 6 666 60 to Sea

Land for transportation to two shipments of Paper Viz Waxed for shipperChemical International Export Corp from Baltimore to Puerto Cortes destination en route changed to Tegucigalpa and from Baltimore to Honduras The

commodity was described in one Bill of Lading as Wrapping Paper and in the

other as Wax PaperIn this application it is certified by applicant Sea Land that this application

was mailed to the Secretary of this Commission on July 5 1979 Thus that is

the date of filing of this application Rule 92 a 3 Rules of Practice and

Procedure 46 C F R i502 92 a 3 Theinvolved shipments dates of sailingaccording to applicant respectively are January 10 1979 as to B LNo 956744391 and March 10 1979 as to B L No 956747400 A specialdocket application must be filed within 180 days of the sailing date of the

involved shipment The instant application was and thus is filed timelyThe commodity is Paper on the two 2 shipments involved herein

Shipment No 1 In Sea Lands Bill of Lading bearing no dateNo 956744391 Exh No 5 Page 3 of 22 attached to application the goodsare described as 35 Container STC 28 skids of 28 Rolls Wrapping Paper

I This dClCiaion will become the decision ofthe Commission in the absence of reviewthereof by the Commission Rule 227 Rules

of Practice and Procedure 46 CP R 1501 227

mharris
Typewritten Text
mharris
Typewritten Text
228
Page 243: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPLICATION OF SEA LAND SERVICE INC

Shipment No 2 In Sea Land s Bill of Lading bearing no dateNo 956747400 Exh No 5 Page 16 of 22 attached to application the goodsare described as 25 Pallets STC 71 Rolls Wax Paper

The applicant states that the goods were properly described as waxpaper inShipment No 2

Upon receipt of the bill of lading as to Shipment No I the shipper Cham

pion International Export Corp filed with Sea Land an overcharge claim on

the basis the commodity was actually Waxed Paper and not Wrapping PaperExh No 5 page 12 of 22 attached to application On the basis of the sample

submitted by the Shipper a refund was authorized by Sea Land s Rate Audit

Department in the amount of 230 80 Jd at 15 of 22 This amount reflectedthe applicable Class 7 rate of 100 00 on Wrapping Paper and the 92 00 LTLrate published on Waxed Paper in Item 1090

Thus it is agreed that the commodity transported in each shipment is Waxed

PaperShipment No I B L No 956744391 bears no date was loaded at Bal

timore on Sea Land s vessel Tampa no voyage number given on B L forPuerto Cortes No freight charges are shown on the B LWeight is shown as

41 880 lbs Sea Land s Home Office Accounting Copy Microfilm 6081558shows the cubic measure 1154 weight 41880 rated as 2885 Rate 100 TM

charge of 2 885 Port Dues rated as 2094 TN MI 26 18 Total charge of2 91118 The application states the voyage number for Shipment No I is

267S and that shipment was made January 10 1979 and the sailing date forit is January 10 1979 Exhibit No 4 at I of 2 attached to application showsvessel Tampa voyage 267 sailed Baltimore Md on January 10 1979 at1512 hours

While Shipment No I was en route the forwarder notified Sea Land thatthe destination was to be changed from Puerto Cortes to Tegucigalpa which isan inland point Supplemental freight bill No 956 743392 Exh No 5 at 9 of22 in the amount of 489 96 was issued to reflect the additional charges Boththe original and supplemental freight bills were paid in full

Shipment No 2 B LNo 956747400 sailed March 10 1979 on the vessel

Tampa voyage No 271S The second shipment which was properly describedas Wax Paper was billed at the 92 00 LTL rate assessed the applicableinland charges to Tegucigalpa and paid in full by the forwarder Attached as

Exhibit No 5 is Calculation of Freight Charges which shows the chargesoriginally billed including the supplemental charges after refund authorized

charges based on the proposed rate charges paid and the amount of refund ifthe application is granted The bills of lading freight bills overcharge letterfrom the shipper and the tariff authority for the accessorial charges are made

part of that exhibitThe above information was derived from the instant application Further

information supplied by the applicant in support ofthe application is as followsSea Land publishes various commodity rates on Paper in Item 1090 to its

TariffNo 283 FMC No 161 which apply from U S North Atlantic portsto Central America Prior to December 14 1978 a trailerload rate of 82 00per ton of 2 000 Ibs minimum of 37 000 Ibs for Waxed Paper was published

229

Page 244: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

230 FEDERAL MARITIME COMMISSION

to Guatemala and Honduras Central America 12th Revised Page 154

effective November 27 1978 Exhibit No 1 Effective December 14 1978

Item 1090 was amended to add a new rate on Wrapping Kraft to apply to

Guatemala and in the process of revising the tariffpage the 82 00 trailerloadrate on Waxed Paper to Honduras was inadvertently deleted see ExhibitNo 2 Attached is Affidavit of John Brennan certifying that due to a clericalerror the rate was omitted from the tariff The error was discovered after the

involved shipments moved and the omission was corrected by publication of

15th Revised Page 154 effective April 2 1979 see Exhibit No 3

Itwas Sea land s intention to amend Item 1090 in its Tariff No 283 to adda new commodity rate and to bring forward the Waxed Paper rates without

change However due to a clerical error a trailerload rate on Waxed Paperwas deleted

It is Sea land s position that the clerical error in inadvertently deleting the

trailerload rate in Item 1090 is of the type within the scope of section 18 b 3

of the Act and section 502 92 of the Commission s Rules of Practice and

Procedure

DISCUSSION

Upon consideration of the above the Presiding Administrative law Judgefinds and concludes that he agrees with the applicant that a proper case has

been made out by the applicant in accordance with section 18 b 3 of the

Shipping Act 1916 and Rule 92 of the Rules of Practice and Procedure46 C F R 1502 92 Therefore the application for permission to refund a por

tion of the freight charges should be grantedFor the reasons given in the application and upon consideration of all of the

above the Presiding Administrative law Judge finds and concludes in addition to the findings and conclusions hereinbefore stated

1 The application was filed timely2 There was filed with the Commission prior to this application an

effective tariff setting forth the rate on which the refund would be based3 There was an error of a clerical or administrative nature which resulted

in the necessity for refund4 The refund permission requested will not result in discrimination as

between shippers5 The application for penpission to refund should be granted

Wherefore it is ordered thatA The application be and hereby is grantedB Sea Land Service Inc is granted permission to refund a 2 065 40

portion of aggregate freight charge of 6 666 60 collected to BDP Inter

national freight forwarder FMC 1127 as agent for Champion International

Export CorpC Appropriate notice shall be published in the applicable tariffsD This proceeding is discontinued

S WILLIAM BEASLEY HARRIS

Administrative Law JudgeWASHINGTON D C

Page 245: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

v

FEDERAL MARITIME COMMISSION

DOCKET No 78 28

INTERNATIONAL TRADE DEVELOPMENT INC

AND ROBERT H WALL INC

SENTINEL LINE AND ANCHOR SHIPPING CORPORATION

ORDER ADOPTING INITIAL DECISION

November 2 1979

On September 26 1979 the Commission determined to review the Initial

Decision issued August 21 1979 in the abovecaptioned complaint proceedingIn that decision the Presiding Officer denied a complaint alleging violations of

sections 16 First 17 and 18 b of the Shipping Act 1916 46 U S c 815

First 816 and 817 b arising out of a common carriers failure to honor a

cargo booking contract

Upon examination of the record the Commission shares the PresidingOfficer s conclusion that the complainants failed to prove their case Further

comment is offered only to avoid any wrong impression which might result

from the discussion of section 16 First at page 6 of the Initial Decision

Page 6 contains citations from portions of the Commission s North Ameri

can Freight Conference decision which refer to the need for a competitiverelationship between a prejudiced and a preferred shipper in order to establish

a violation of section 16 First Although correct as far as it goes reliance solelyupon the North American decision fails to reflect other rulings which have held

that section 16 First can be violated without the presence of a competitivecommercial relationship between shippers E g Volkswagenwerk A G v Fed

eral Maritime Commission 390 U S 261 278 280 1968 New York For

eign Freight Forwarders Brokers Assn v Federal Martime Commission

337 F 2d 289 299 2d Cir 1964 cert den 380 US 910 1965 FreightForwarder Bids on Government Shipments 19 F M C 619 1977 ProposedILA Rules on Containers 18 S R R 553 1978 General Mills Inc v State

ofHawaii 17 F MC I 1973 Valley Evaporating CQ v Grace Line Inc

II f M C202 209 1967

mharris
Typewritten Text
231
Page 246: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

232 FEDERAL MARITIME COMMISSION

14 F MC 16 1970 Free Time Practices Port ofSan Diego 9 F M C 525

1966These cases establish that a competitive relationship is not required when the

facts reveal a clear comparative disadvantage or othertype of special injuryto the complaining shipper or locality which 1 goes beyond the simplepayment of a higher rate and 2 cannot reasonably be justified on the basisof traditional transportation factors Because the complainants did not even

establish that a particular shipper or shippers were unduly preferred the

Commission need not reach the question of whether a carrier s duty to honor

cargo bookings is the type of conduct which would violate section 16 First in

the absence of a competitive relationshipTHEREFORE IT IS ORDERED That except as supplemented by the

above discussion of section 16 First of the Shipping Act 1916 the August 21

1979 Initial Decision in Docket No 78 28 is adopted by the Commission and

IT IS FURTHER ORDERED That this proceeding is discontinuedBy the Commission

S FRANCIS C HURNEY

Secretary

Page 247: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

v

FEDERAL MARITIME COMMISSION

No 78 28

INTERNATIONAL TRADE DEVELOPMENT INCAND ROBERT H WALL INC

SENTINEL LINE AND ANCHOR SHIPPING CORPORATION

Adopted November 2 979

Complainants have failed to establish a violation of any provision of the Shipping Act upon which

reparation can be granted

Robert S Hope for complainants

INITIAL DECISION OF JOHN E COGRAVEADMINISTRATIVE LAW JUDGE1

By a complaint filed under section 22 of the Shipping Act 1916 Inter

national Trade Development Inc and Robert H Wall Inc seek reparationof at least 22 976 09 for Sentinel Line s non performance of its obligationas a common carrier

Anchor Shipping Corporation originally named as co respondent in the

complaint moved for dismissal as to it on the ground that since Anchor was

neither a common carrier by water nor an other person as defined in the

Shipping Act the Commission was without jurisdiction over it 2 Anchor was a

general agent and broker and as such wasnot a common carrier orother person

against whom a complaint would lie

Judge Reillygranted the motion and dismissed the complaint as to Anchor 3

See Order ofOctober 30 1978 On the same day as the dismissal of Anchor

Judge Reilly issued an Order to Show Cause Why Proceeding Should Not be

I This decision will become the decision of the Commission in the absence ofreview thereof by the Commissioo Rule 227 Rules

of Pntctice and Procedure 46 CF R 5502 227

2 Section 22 permits persons to file complaints only against common carriers and other persons

J Section of the Shipping Act defines other person as someone other than a common carrier carrying on the business of

forwarding orfurnishing wharfage dock warehouse orother terminal facilities in connection with a common carrier by water

Clearly Anchor was not an other person

mharris
Typewritten Text
233
Page 248: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

234 FEDERAL MARITIME COMMISSION

Decided Without Oral Hearing In that order Judge Reilly noted that Sen

tinel had not answered the complaint nor had it responded to any of the various

motions but nevertheless sought to give Sentinel one more opportunity to

defend itself in the case Sentinel was given IS days to respond to the order to

show cause On November 17 1978 Judge Reilly in noting that Sentinel hadnot responded to the order to show cause dispensed with oral hearing andordered complainant to submit such documentary evidence as it had in its

possession which would support its claim of reparation against Anchor Line

Complainant filed its exhibits on December 20 1978 In a covering letter

complainant stated

Although the complaint as to respondent Shipping Corporation was dismissed upon the representation of its counsel that it was acting only as General Agent for Sentinel it is the information

and belief of complainants that Sentinel and Anchor are one and the same entity owned and

controlled by the samepersons and should both be held responsible for payment of the reparationsas set forth in the attached Affidavit plus reasonable attorney s fees and costs of at least

56 000 00

On the next day December 21 1978 the Commission in a notice announcedthat the time within which the Commission could determine to review the

dismissal of Anchor had expired and that no review would be undertaken On

January 18 1978 Judge Reilly wrote counsel for complainant posing certainquestions and directing counsel to filea memoradum of law The memorandumwas filed on July 26 1979 s

FACTS

International Trade Development Inc isengaged in the export ofvariouscommodities in the foreign commerce of the United States Robert H Wall isan agent and broker of shipments in U S foreign commerce Sentinel Line is

or was a common carrier by water subject to the Shipping Act 1916On February 7 1977 International completed negotiations for the sale of

2 000short tons of bagged rice to the Government of Haiti at a price of 13 45

a bag CIF Port Au Prince Haiti On the same day Food Corporation Inter

national Ltd of Houston confirmed to Robert H Wall the sale of 40000 one

hundred pound bags of rice to International at a price of 11 40 a bag TheGovernment of Haiti on February 8 1977 opened a letter of credit at RiggsNational Bank in Washington D C The letter was for 538 000 and was in

favor of International On the same day that the letter of credit was openedTranschartering Inc of New York made a firm booking by telephone for theSentinel vessel MV Omiria The cargo wasbooked at 37 65 full berth terms

the Omiria to be available for loading February 17 28 1977 The telephonebooking was confirmed by a booking contract dated February 8 1977

Wall is a subscriber to the Transportation News Ticker and on

February IS 1977 International learned from that service that the Omiria hadbeen booked to carry 1834 metric tons of blended food to Kingston Jamaica

Complainant have not at least IIfarI thl record howl evcr formally attempt to have Anchor restored 81 a reapondenL

The delay in filinl the memorandum was due to iIIn of counsel In the Interim Judge Reilly left the Commission and thus

became unavailable lo render a decision In this calC

Page 249: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

ROBERT H WALL INC V SENTINEL LINE ANCHOR SHIPPING CORP 235

March 1 10 berth terms at a rate of 46 76 per short ton The physicallimitations of the Omiris and the scheduling made it impossible for the Omiristo satisfy both bookings

Upon finding out about the Jamaica booking Wall contacted Transchartering and was assured that a substitute vessel would be furnished to meetInternationals loading dates On February 14 Wall learned the Omiris hadbeen arrested in the Dominican Republic Transchartering however told Wallthat the lien on the Omiris was to be lifted and the vessel would be at a U SGulf port on February 28 1978 As a precaution International had the letterof credit extended to change thecancelling dateof March 5 1977 Several dayslater Transchartering told Wall that the loading date for the Omiris would beMarch 8 1977 The Government of Haiti agreed to a final extension of theletter of credit with the condition that the on board bills of lading be dated no

later than March 10 1977 Finally on March 7 1977 after repeated requestsfor assurances that the Omiris would meet the March 8th loading date

Transchartering advised that the ship would not be able to perform the

bookingInternational despite repeated efforts could not find a vessel in a position to

meet the loading date and the Government of Haiti cancelled the purchasecontract and the letter of credit expired by its terms

It is asserted that because of Sentinels failure to perform its booking con

tract International suffered out of pocket expensesof 22 976 09 composed of

I Loss of profit from sale of rice 13 665 252 Charges and interest levied 8 000 003 Charges by Riggs National Bank 1 310 84

Complainants request for reparation is grounded on the allegation that

Sentinel has not only breached its obligation as a common carrier but has violated Section 16 ofthe Act by giving undue or unreasonable preference or advantage to other shippers particularlythe shipper of blended food in packages to Jamaica which acts resulted in undue or unreasonableprejudice or disadvantage to Wall and LT D International Likewise upon information andbelief Sentinel and Anchor probably violated other provisions of the Act including Sections 17 and18 thereofComplaint for International Trade Development at 6

DISCUSSION AND CONCLUSION

Complainants entire argument on the merits of the case is

I Common Carriers cannot convert themselves to Contract Carriers byentering into preferential and exclusivecontracts for one banana shipper fora forward period while carrying common carriage cargoes on the balanceof a particular ship or ships Hence the result was a violation of Sections14 Fourth and 16 First of the Shipping Act 1916

2 Here despite the firm booking to Complainants of the M V Omiris on FullBerth Terms or by a substitute vessel the respondent did not perform This

booking was confirmed both orally and in writing as to the Omiris then as

to a substitute vessel Respondents failed to perform with any vessel and did

Page 250: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

236 FEDERAL MARITIME COMMISSION

1 not advise Complainants until it was too late to carry the bagged rice to

Haiti3 The same cases mentioned above established that the Commission as the

Agency with the expertise has the responsibility ofdetermining the amount

ofreparations Both the Court ofAppeals and the Supreme Court found the

Commission used the proper standards ofmeasuring the damages that is

as Chief Judge Bazelon statedThe Shipper s lost profits are the nonnal measureof damages in cases involving a refusal to carryand the Supreme Court affirmed this principle in its rejection of our prior conclusion regardingequity of giving Consolo his lost profits in the circumstances of this case

Whatever the measure of reparation may be none can be awarded unless a

violation ofa specific provision of the statute is found In its complaint Sentinelmentions sections 16 17 and 18 of the Shipping Act In mentioning thesesections the only specific allegation madCois that Sentinel violated section 16 bygiving undue or unreasonable preference or advantage to other shippers

particularly the shipper of blended food in packages to Jamaica Thedifficulty with this allegation is that no where in the record is there any evidencethat the Omirls was released from the custody of the Government of SantoDomingo in time to carry the Jamaican shipment or that the shipment wasever

carried by SentinelAs if this were not enough the Commission has on any number of occasions

spelled out the criteria for establishing a violation of section 16

This prohibition against under or unreasonable preference orprejudice is designed to deal with two

or more competing shippers or localities receivingdift nt treatment which is not justified bydifferences in competitive or transportation conditions The classic case would be where theshippers at A B are competitive in a common market at C and the same competitiveintluences applyNorth American Freight Conference 11 F M C 202 at 209 1967 and cases cited therein

Complainants as shippers of rice were not competitive with the shipper of

packaged blended foods and thus the two shippers were not similarly situatedNor were the cargoes destined for a common market Thericewas destined forHaiti and the blended food was destined for Jamaica Under the facts of thiscase no violation of section 16 can be found Nor will the record sustain a

violation of section 17 6

D iscrimination arises when two shippers of like traffic shipping on the same line between thesame points under substantially similar circumstances and conditions are charged different rates

II F M C at 212

For obvious reasons the facts of this case do not establish a violation ofsection 17

AU of this is not to say that complainants have no forum Sentinel appearsto have breached the contract of carriage and the remedy for that lies in thecourts not the Commission

In mentioning section 17 it is presumed that complainants are concerned withdilCrimination singe the receiving handlingstoring or delivering or property is not involved here

For equally obvious reasons no violation orsection 18 b or the Acthaa been established Since there as no actual carriagenoneof the provisions of 18 b can be brought to bear

Page 251: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

S JOHN E COGRAVE

Administrative Law Judge

ROBERT H WALL INC V SENTINEL LINE ANCHOR SHIPPING CORP 237

Since complainants have failed to establish a violation upon which reparationcan be granted the case is dismissed

WASHINGTON D C

August 10 1979

Page 252: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

TITLE 46 SHIPPING

CHAPTER IV FEDERAL MARITIME COMMISSION

SUBCHAPTER A GENERAL PROVISIONS

GENERAL ORDERS Nos 2S AND 30 REVISED DoCKET No 79 66J

PART S04 COLLECTlON COMPROMISE AND TERMINATIONOF ENFORMCEMENT CLAIMS

PART SOS CoMPROMISE AssESSEMENT SETTLEMENT AND COLLECTION

OF CIVIL PENALTIES UNDER THE SHIPPING ACT1916 AND THE INTERCOASTAL SHIPPING ACT

1933 AMENDED

November 19 1979

ACTION

SUMMARY

Final Rule

This repeals obsolete regulations Part S04 and amendsand finalizes interim regulations Part SOS which are en

acted to implement recent amendments to the ShippingAct 1916 which authorize the Federal Maritime Commission to assess or compromise all civil penalties provided inthe act

EFFECTIVE DATE November 27 1979

SUPPLEMENTAL INFORMATION

This proceeding was instituted by publication of Interim Regulations madeimmediately effective on July S 1979 44 Fed Reg 39176 to amend 46C F R Part SOS General Order 30 which as amended implements theassessment of civil penalty authorization provisions of Pub L96 2S

Comments to the Interim Regulations were invited and were received fromeleven parties in four submissions Commentators consist of one attorney one

steamship company and nine conferences agreements

mharris
Typewritten Text
238
Page 253: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

COLLECTION COMPROMISE AND TERMINATION 239

1 Alton Boyer Esquire Boyer suggests clarification that both the findingof violations and assessment of penalties therefor be encompassed in a singleproceeding and clarification of the role of Hearing Counsel the differencebetween compromise and settlement if any exists who makes the determination that a violation may have occurred and the opportunity for judicialreview Boyer further raises questions concerning due process the desirabilityof maximizing opportunity for settlement the necessity for approval of settlement at three levels too much formality in the compromise procedure the

desirability of using confess judgment notes and the public availability ofinternal settlement guidelines Finally Boyer suggests that the rules make clearthat they are not intended to impose a harsher outcome than the previous rules

Lykes Brothers Steamship Co Inc supports the interim regulations in totoand urges expedited approval

Agreements 10107 and 10108 Japan Korea Atlantic and Gulf FreightConference Philippines North America Conference Straits New York Conference Thailand Pacific Freight Conference Thailand U S Atlantic andGulf Conference and Trans Pacific Freight Conference of Japan Korea Conferences suggest clarification of the presiding officer s authority to modify a

settlement in an assessment proceeding insist that compromise procedures beavailable to all on an equal basis and agree that obsolete 46 C F R Part 504General Order 25 need not be retained

Inter American Freight Conference IAFC suggests changes to clarify therole of Hearing Counsel and two other minor sections

Each of the Specific proposals advanced by the comments will now bediscussed

1 Repeal ofGeneral Order 25 as Obsolete

In the preamble of the Interim Regulations the Commission indicated thatit perceives no probable regulatory need for the retention of GeneralOrder 25 46 C F R Part 504 Collection Compromise and Termination ofEnforcement Claims which implemented the Federal Claims Collection Act of1966 The need to retain such General Order will be considered by the Commission in connection with comments invited to these interim regulations The

only comment received on this point was from the Conferences which agreethat General Order 25 need not be retained Accordingly 46 C F R Part 504will be revoked

2 FindingofViolations andAssessment ofPenalties in the Same Proceeding

As raised by Boyer it is contemplated that both the issue of whether vio

lations have been committed as well as the assessment of penalties for suchviolations may be encompassed in a single proceeding Such a specific provision however is not necessary in view of the Commission s need for flexibilityin structuring proceedings under section 22 of the Shipping Act and theAdministrative Procedure Act

Page 254: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

240 FEDERAL MARITIME COMMISSION

3 The Role ofHearing Counsel

IAFC suggests there is no need todefine the roleofHearing Counsel becausethe dutiesof this Bureau are already defined in 46 C F R 5502 Boyer on the

other hand refers to the newly assigned role of prosecutor and the seeminginconsistency with the duty of Hearing Counsel to act as he deems is requiredby the public interest under 46 C F R 5502 42

The pertinent part of 46 C F R 550242 reads Hearing Counsel shall

actively participate to the extent required in the public interestWhatever this may mean in other types ofproceedings Hearing Counsel havealways been the staff attorney in Commission instituted cases to establish

violations The prosecutorial role was always there the only newly as

signed role under P L 96 25 is the ability to request assessment of civilpenalties in such a proceeding

In an assessment proceeding as in violations cases before the enactment of

P L96 25 Hearing Counsel are subject to the direction of the Commissiononly as set forth in the order s instituting the case and are otherwise fullysubject to the separation of functions as in all other adjudicatory proceedingsAlso as in previous violations cases it is clear that Hearing Counsel have the

burden of proof to establish such violationsTo clarify this provision somewhat we will delete the phrase shall par

ticipate as attorney for the Commission and related language in section 505 3

The remaining language will be retained to specifically provide that all negotiations for settlement will bewith Hearing Counsel in assessment proceedingsand not with General Counsel as in compromise cases where no formal proceeding has been instituted

4 Settlement Procedures in Formal Proceedings

The difference between compromise and settlement was questioned byBoyer Of course in addition to the traditional legal connotation a compromise proceeding as defined in section 505 2 c is the informal process whilethe assessment proceeding is a formal docket See section 505 2 a Set

tlements can be reached in either process with General Counselor HearingCounsel as the case may be

Boyer suggests that it is desirable to maximize opportunity for settlementcompromise in a formal proceeding but the rules seem to tend in the

opposite direction He questions the necessity of having such settlements

approved by three levels of officials ie Hearing Counsel the Administrative Law Judge where referred and the Commission itself

The Commission intends no extraordinary impediment to settlements keeping in mind that most formal proceedings will be the result of unsuccessfulcompromise efforts with the General Counsel Hearing Counsel as a party to

the stipulation or settlement will not be approving agreements but rather will

be joining with respondents in submitting agreements for approval The inclusion of the settlement agreement in the Initial Decision and final decision

Page 255: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

COLLECTION COMPROMISE AND TERMINATION 241

replaces findings ofviolations and assessment ofpenalties and the Commissiondeems such limited formality necessary to its regulatory responsibilities

The Conferences submit that the rules do not specify whether the presidingofficer can amend modify or simply reject a settlement Such powers are

implied in the requirement that the presiding officer approve such a settlement

Accordingly no other changes to section 505 3 are necessary

5 Compromise Procedures Institution and Notice

Section 5054 provides for institution of compromise procedures in certaininstances whenever the Commission has reason to believe that there hasoccurred a violation Boyer questions the participation by the Commission

in this determination as compromising its integrity as a quasi judicial body Itis well settled however that an administrative agency s participation in theinstitution of a proceeding does not disqualify it from making an informeddecision on the record as to whether violations are established

On the other hand the Conferences would urge the absolute right of any

respondent to first utilize the compromise procedures before or instead of

going to a formal proceeding with the only possible exception being the case

where the statute of limitations period is about to run While such a procedureis intended to be used in the normal case we do not interpret P L96 25 or its

legislative history as establishing it as a right and no such amendment will beadded See section 505 5

IAFC suggests that the first demand letter inform respondents ofthe identityof the attorney in General Counsel who will negotiate the compromise This is

neither practical nor necessaryBoyer suggests that the language making a final determination with re

spect to that stage when the compromise procedure is terminated may be too

formalistic The language is not intended to imply a determination similar to

a final order of the Commission but rather to specifically set a reasonable

cut off date beyond which the compromise procedures cannot continue Since

we can think of no more palliative language with the necessary import no

change will be made

6 Mutual Exclusiveness ofProceedings

IAFC suggests clarification of section 505 6 b to remove ambiguity Ac

cordingly we will insert the words under section 5054 to accomplish this

clarification

7 Confession ofJudgment Note Provisions

Boyer questions the desirability of requiring a confession of judgment provision in a promissory note in section 505 7 b and in Appendix B Where

circumstances allow a promissory note instead of immediate payment of the

penalty in the first place such a provision is necessary to protect the government from delays in collection ofdebts and is common practice Itwasprovided

Page 256: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

242 FEDERAL MARITIME COMMISSION

for in both the original General Order 30 and General Order 25 which is beingrepealed

8 Opportunity for Judicial Review

Boyer suggests the rules should provide for judicial review and for protectionduring that review from assessment proceedings or collection efforts Where

a final Commission order has been issued however the Hobbs Act 28 US C

i2341 et seq provides for judicial review and the Courts ofAppeals have the

power to stay further agency action with respect to such orders Since assess

ment proceedings will ordinarily result in a final order on both the existence ofviolations and the amount of penalties and since compromise procedures are

voluntary we cannot understand the basis for Boyer s suggestion and do not see

the need for any amendment

9 Guidelines for Compromise and Settlement

Boyer suggests that guidelines for compromise and settlement be publishedSuch an endeavor however if feasible after further experience belongs in a

policy statement rather than in the procedural regulations involved here

10 Protection Against aHarsher Outcome

Boyer urges that the Commission should make it clear that nothing in theserules or in the Commission s administration of Public Law No 96 25 is

intended to or will be permitted to impose a harsher outcome with respect to

penalties for violations or alleged violations occurring prior to the adoption ofP L No 96 25 and these rules than would have been the case without their

adoption Again we have difficulty in understanding this suggestion es

pecially since the new statute substantially increased the penalties in sections16 and 18 and provides for new penalties for operating under a suspended tariffThus without some further definition of harsher outcome if such is possible no such amendment to these procedural rules appears feasible

Therefore pursuant to the provisions of Pub L 96 25 93 Stat 71

section 4of the Administrative Procedure Act 5 U S C i553 and sections 32

and 43 ofthe Shipping Act 1916 46 U S C U831 and 841a Title 46 CFR

Part 504 is hereby revoked and the interim revision of 46 CPR Part 50Spublished at 44 Fed Reg 39176 is amended by the revision of sections 505 3

and 505 6 is adopted as final and shall read as follows

PART 50S COMPROMISE ASSESSMENT SETTLEMENT

AND COLLEcrION OF CIVIL PENALTIES UNDER THE

SHIPPING ACT 1916 AND THE INTERCOASTALSHIPPING Acr 1933

Sec505 1 Purpose and Scope505 2 Definitions

Page 257: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

COLLECTION COMPROMISE AND TERMINATION 243

505 3 Assessment5054 Compromise Procedures5055 Assessment Procedures

505 6 Mutual Exclusiveness of Procedures505 7 Method of Payment of PenaltyAUTHORITY Sec 3 86 Stat 653 Sec lO e 93 Stat 71 and Sees 32 and43 of the Shipping Act 1916 46 US C 83l and 84la

505 1 Purpose and Scope

The purpose of this part is to implement the statutory provIsions ofsection 3 of Public Law 92 416 86 Stat 653 and section 100e ofPublic Law96 25 93 Stat 71 by establishing rules and regulations governing the com

promise assessment settlement and collection of civil penalties arising undercertain designated provisions of the Shipping Act 1916 the Intercoastal Shipping Act 1933 and or any order rule or regulation except for proceduralrules and regulations contained in part 502 of this chapter issued or made bythe Commission in the exercise of its powers duties and functions under thosestatutes Also for the purpose of this part the criteria for compromise settlement or assessment may include but need not be limited to those which are

set forth in 4 CFR Part 101 105

505 2 Definitions

For the purposes of this parta Assessment means the imposition of a civil penalty by Order of the

Commissionb Commission means the Federal Maritime Commissionc Compromise means the process whereby a civil penalty for a violation

is agreed upon by the respondent and the Commission s General Counseld Person includes individuals corporations partnerships associations

and other legal entities

e Violation includes any violation of sections 14b through 21 except 16first and third and section 44 of the Shipping Act 1916 section 2 of theIntercoastal Shipping Act 1933 and or any order rule or regulation exceptfor procedural rules and regulations contained in part 502 of this chapterissued or made by the Commission in the exercise of its powers duties andfunctions under the Shipping Act 1916 and the Intercoastal Shipping Act1933

f Respondent includes any person charged with a violation

505 3 Assessment

Assessment of civil penalties may be made only in a formal proceedinginstituted by the Commission under section 22 of the Shipping Act 1916 for

the purpose of such assessment Such proceeding shall be governed by theCommission s Rules of Practice and Procedure 46 CFR 502 In such a pro

Page 258: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

244 FEDERAL MARITIME COMMISSION

ceeding the Commission s Bureau of Hearing Counsel shall have full authorityto enter into stipulations and settlements Any such proposed settlement of

penalties for violations whichare the subject ofa pending proceeding under this

section must be negotiated with Hearing Counsel shall be submitted to the

presiding officer for approval and the full text of every such settlement must

be included in the final Order of the Commission in the proceeding

505 4 Compromise Procedures

a Institution and Notice

Except in pending assessment proceedings as provided for in section 505 3

above whenever the Commission has reason to believe that there has occurred

a violation for which a civil penalty is authorized and it isappropriate to invokethe procedures looking toward compromise of the statutory penalties theGeneral Counsel s Office will send a registered letter to the respondent infor

ming him of the nature of the violation the statutory and factual basis of the

penalty the amount of the penalty and the availability of Commission person

nel for discussion of the penalty claim should the respondent so desire Two

written demands at 3Oday intervals will normally be made unless a responseto the first demand indicates that further demand would be futile or unless

contrary action is indicated by the circumstances

b Request for Compromise1 Whenever a person is advised in writing that the Commission has reason

to believe that he has committed a violation such person may submit any oralor written answer to the notification letter explaining mitigating showingextenuating circumstances or where there has been no formal proceeding on

the merits denying the violation Material or information so presented will be

considered in making a final determination as to whether to terminate the

compromise procedure or whether to compromise the penalty and if so theamount for which it will be compromised

2 All correspondence petitions forms or other instruments regarding the

collection compromise or termination of any penalty under this section shouldbe addressed to the General Counsel Federal Maritime Commission 1100 L

Street N W Washington D C 20573

c Disposition of Claims in Compromise Procedures

I When the penalty is compromised such compromise will be made con

ditional upon the full payment of the compromise within 30 days or such longerperiod and upon such terms and conditions as may be allowed by the GeneralCounsel

2 When a statutory penalty is compromised and the respondent agrees to

settle for that amount a compromise agreement shall be executed One typeof settlement agreement is set forth in Appendix A This agreement after

reciting the nature of the claim will include a statement evidencing the re

spondent s agreement to the settlement of the Commission s penalty claim for

the amount set forth in the agreement and will also embody an approval and

Page 259: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

S FRANCIS C HURNEY

Secretary

COLLECTION COMPROMISE AND TERMINATION 245

acceptance provision which is to be signed by the General Counsel Uponsettlement of the penalty in the agreed amount a copy of the executed agreement shall be furnished to the respondent

3 Any offer of compromise submitted by the respondent pursuant to

5054 b shall be deemed to have been furnished by the respondent without

prejudice and shall not be used against the respondent in any proceeding

d Delegation ofCompromise AuthorityThe compromise authority set forth above is delegated to the General

Counsel

5055 Assessment Procedures

In addition to its discretion to institute an assessment proceeding or civil

penalty action without need to resort to the compromise procedures the Com

mission may after initiation of compromise procedures institute an assessment

proceeding or civil penalty action when

a The respondent within the prescribed time does not explain the violation

petition for compromise or otherwise respond to letters or inquiries or

b The respondent having responded to such letters or inquiries fails or

refuses to pay the statutory or the compromised penalty

505 6 Mutual Exclusiveness ofProcedures

a No assessment of penalties for violations shall be made by Order of theCommission nor shall any assessment proceeding be instituted after a set

tlement agreement for the same violations under the compromise procedureshas become effective

b No compromise procedure for penalties under section 5054 for vio

lations shall be initiated after institution of a Commission assessment proceeding for the purpose of assessing penalties for the same violations

505 7 Method ofPayment ofPenalty

Payment of penalties by the respondent shall be made bya A bank cashier s check or other instrument acceptable to the Commission

b Regular installments by check after the execution of a promissory note

containing a confess judgment agreement Appendix B

c A combination of the above alternatives

All checks or other instruments submitted in payment of claims shall be

made payable to the Federal Maritime Commission

Effective date The provisions of this part 505 will become effective upon

publication in the Federal RegisterBy the Commission

Page 260: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPENDIX A

ONE EXAMPLE OFCOMPROMISE AOREEMENT

USED BYAND THE FEDERAL MARITIME COMMISSION

This Agreement is entered into between 1 the Federal Maritime Commis

sion and 2 hereinafter referred to as respondentWHEREAS the Commission is considering the institution ofan assessment

proceeding against respondent for the recovery ofcivil penalties provided underthe Act for violations of Section

WHEREAS this course of action is the result of practices believed by theCommission to have been engaged in by respondent to wit

WHEREAS the parties are desirous of expeditiously settling the matter

according to the conditions and terms of this Agreement and wish to avoid thedelays and expense which would accompany agency litigation concerning thesepenalty claims and

WHEREAS Public Laws 92 416 and 96 25 authorize the Commission to

collect and compromise certain designated civil penalties arising under theShipping Act 1916 including the civil penalties which arise from the violationsset forth and described above

WHEREAS the respondent has terminated the practices which are thebasis of the violations set forth herein and has instituted and indicated its

willingness to maintain measures designed to eliminate discourage and prevent these practices by respondent or its officers employees and agents

NOW THEREFORE in consideration of the premises herein and in com

promise of all civil penalties under the Act arising from violations set forth anddescribed herein that may have occurred betweenand the undersigned respondent herewith tenders to

the Federal Maritime Commission the sum of

Payment will be made in one or a combination of the followingmethods a A banks cashier s check or other instrument acceptable to the

Commission b Regular installments by check after the execution of a promisoory note a copy of which will be attached to this agreement and incorporated herein Upon the following stipulations and terms of settlement

1 Upon acceptanceof this agreement of settlement in writing by the GeneralCounsel of the Federal Maritime Commission this instrument shall foreverbar the commencementor institution of any assessment proceeding orother

mharris
Typewritten Text
246
Page 261: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

247

claims for recovery of civil penalties from respondent arising from the

alleged violations set forth and described herein that have been dis

closed by respondent to the Commission and that occurred betweenand

2 The undersigned voluntarily signs this instrument and states that no promises or representations have been made to the respondent other than the

agreements and consideration herein expressed3 It is expressly understood and agreed that this Agreement is not to be

construed as an admission of guilt by undersigned respondent to the allegedviolations set forth above

NAME OF COMPANY

By

Date

APPROVAL AND ACCEPTANCE

The Above Terms and Conditions and Amount of Consideration are herebyApproved and Accepted

By the Federal Maritime Commission

General Counsel

Date

Page 262: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPENDIX B

PROMISSORY NOTE CONTAININGAGREEMENT FOR JUOOMENT

For value received promises to pay to

the Federal Maritime Commission the Commission the principal sum of

Dollars to be

paid at the offices of the Commission in Washington D C by bank cashier s

or certified check in the following installments

In addition to the principal amount payable hereunder interest on the

unpaid balance thereofshall be paid with each installment Such interest shallaccrue from the date of this Promissory Note and be computed at the rate of

percent per annum

Ifany payment of principal or interest shall remain unpaid for a period of10 days after becoming due and payable the entire unpaid principal amount

ofthis Promissory Note together with interest thereon shall become immediately due and payable at the option of the Commission without demand or

notice being hereby expressly waivedIf a default shall occur in the payment of principal or interest under this

Promissory Note does hereby authorize and empower any U S Attor

ney any of his assistants or any attorney of any court of record Federal or

State to appear for it and to enter and confess judgment against for the entireunpaid principal amount ofthis Promissory Note together with interest in anycourt of record Federal or State to waive the issuance and service of processupon in any suit on this PromissQry Note to waive any venue requirement in such suit to release all errors which may intervene in entering up suchjudgment or in issuing any execution hereon and to consent to immediateexecution on said judgment hereby ratifies and confirms all that saidattorney may do by virtue hereof

This Promissory Note may be prepaid in whole or in part by by bankcashier s or certified check at any time provided that accrued interest on the

principal amount prepaid shall be paid at the time of the prepayment

NAME OF COMPANY

By

Date

mharris
Typewritten Text
248
Page 263: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

SPECIAL DoCKET No 649

APPLICATION OF MAERSK LINE AGENCYFOR THE BENEFIT OF NOMURA AMERICA CORPORATION

SPECIAL DoCKET No 652

APPLICATION OF MAERSK LINE AGENCYFOR THE BENEFIT OF WESPAC CORPORATION

REPORT AND ORDER ADOPTING INITIAL DECISIONS

November 20 1979

These proceedings involve applications filed on June II 1979 by the Pacific

Westbound Conference PWC and one of its members Maersk Line represented by the Maersk Line Agency seeking permission to refund portions of

freight charged on various shipments which moved under PWC tariffs ByInitial Decisions served August 21 and 22 1979 Administrative Law JudgeNorman D Kline denied both applications Exceptions to the Initial Decisions

were filed by PWc

In Special Docket No 649 PWC prior to January I 1979 had published a

rate on Butyl Motor Tube Scrap in the amount of 64 per weight ton of I

kilograms PWC revised and republished this tariffeffective January I 19792

In the process the rate on Butyl Motor Tube Scrap was unintentionallydeleted 3 As a result any shipment of this commodity became subject to the

commodity classification Synthetic rubber including the followingButyl 4 which carried a rate of 96 per weight ton Some time thereafter

PWC restored a rate on Butyl Motor Tube Scrap effective March 28 1979

The rate which was published however was not the previous rate of 64 but

rather a rate of 70 per weight ton 5 On February 5 1979 during the time in

Because of the similarity of parties and issues these proceedings have been consolidated for decision

1 Local and Overland Freight Tariff No ll F M C19

l Affidavit of Donald P Griffith Executive Assistant to the PWC June II 1979

Local and Overland Freight Tariff No l1 F M C 19

PWC Tariff No I I F M C 19 3rd rev page 742 effective March 28 1979

mharris
Typewritten Text
249
Page 264: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

250 FEDERAL MARITIME COMMISSION

which the unintended rate of 96 per weight ton was in effect the Nomura

America Corporation shipped used butyl motor tubes Because at the timethe shipment was made Nomura expected to be charged the 64 rate it

requested that this rate be reinstated and applied 6

In Special Docket No 652 PWC in republishing its tariff to becomeeffective January 1 1979 inadvertently deleted the 104 W1M commodityrate for Mineral Insulating Material N O S Consequently any shipment ofthis material became subject to a rate of 201 W1M under the commoditydescription Non Metallic Minerals and Products Except Ceramic Productsand Glass and Glass Products N O S PWC filed a corrective rate on

April 25 1979 of 114 W1M rather than 104 W1M This higher rate

included a general rate increase which raised the rate from 104 to 114 as ofApril 1 1979 During the time the 201 rate was in effect and before thegeneral rate increase was to be instituted Wespac Corporation sent insulatedmaterials to the carrier s terminal to be shipped This shipment left port on

April 6 1979 The shipper was not awareofthe 10 rate increase and requeststhat the 104 rather than 114 rate be applied

The Presiding Officer denied both applications on the ground that PWC andMaersk had prior to filing the applications failed to file tariffs upon which a

refund could be based He found that in each case PWC had filed rates

different from those the shipper had either been quoted or expected to be

charged prior to the time of shipment8

The Presiding Officer cites five recent cases to support his decision includingMunoz y Cabrero v Sea Land Service Inc 17 S RR 1191 1193 1977where the Commission held

Section 18 b 3 requires that prior to applying for a refund or a waiver the carrier file a new tariffupon which such refund or waiver will be based When read in conjunction with the statementsin the House and Senate reports it is clear that the new tariff is expected to reftect a priorintended rate not a rate agreed upon after the shipment

In its Exceptions PWC explains that with respect to the rates at issue in

Special Docket No 649 it considered it more prudent to incorporate thegeneral rate increase of 10 on March 28 1979 than have a 64 wt rate ineffect for only four days which would have increased to 70 wt on April 11979

The situation which gave rise to the application in Special Docket No 652is allegedly somewhat different As to that application PWC explains thatwhen the oversight was discovered in April 1979 the general rate increase hadalready been instituted Therefore the Conference allegedly reinstated theomitted commodity at the preApril 1 general rate level and then incorporatedthe 10 increase that was in effect as of April 1 1979

In the alternative if both of the above explanations are found not to justifygranting the applications as submitted PWC requests permission to publish in

6 Letter or H KilllOShita Assistant Socretary Nomura Corporation addrcaaed to pwe Chairman Donovan D DayFebruary 28 1979

1PWC Tariff No II F M C 19 3rd rev page 489 declive January I 1979

As late 8i June 25 1979 the Presidina Officcr advised pwe of the pouible juriedictional deficiency and sugestcd that It

publish an appropriate corrective willand fileanew application Set lelter ofAdministrative Law Judao Norman Kline addrcsscdto pwe Executive Assistant Donald Griffith June 1S 1979

Page 265: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPLICATION OF MAERSK LINE AGENCY 251

its tariffnotice that effective January 1 through March 31 1979 for purposesofrefunds or waiver of freight charges the rates of 64 for Butyl Motor Tube

Scrap and 104 for Mineral Insulating Material N O S subject to allrules regulations terms and conditions of these tariffs would be applicablePWC cites Application ofPacific Westbound Conference for the Benefit ofM C International 19 S RR 333 1979 in which it claims that an application was granted under similar circumstances

DISCUSSION AND CONCLUSION

A special docket application seeking a refund or a waiver must meet certain

requirements set forth in section 18 b 3 ofthe Shipping Act 1916 46 U S C

S817 b 3 and section 502 92 a of the Commission s Rules 46 C F R

S 502 92 a Included among these are the requirements that the errorbe bona

fide and of a type contemplated by the statute that applicant prior to submit

ting the application have filed a corrective tariffsetting forth the rate on whichthe refund would be based that the application be filed within 180 days of

shipment and that no discrimination among shippers result from the grantingof the application

We are concerned here with the condition that is set forth in the second

proviso of section 18 b 3 to wit

Provided further That the common carrier by water in foreign commerceor conference of suchcarriers has prior to applying for authority to make refund filed a new tariff with the FederalMaritime Commission which sets forth the rate on which such refund or waiver would bebased Emphasis added

The rates negotiated between PWC and the shippers involved in these pro

ceedings and the corrective rates filed by PWC pursuant to its applications are

clearly at variance Consequently PWC has failed to comply with the requirement of section 18 b 3 as cited above This finding is consistent with theCommission s holding in Munoz supra where it was explained that

Prior to applying for a refund or waiver the carrier must file a new tariff to reflect a prior intendedrate The Commission does not have authority to approve a rate which was never agreed upon or

intended to be filed17 S R R at 1192

PWC does not dispute the holding in Munaz but contends that an application was granted under the same circumstances existing here In the case relied

upon Application ofPacific Westbound Conference for the Benefit of M C

International supra the Presiding Officer s decision became administrativelyfinal upon the passage of time allowed for exceptions or Commission reviewUnder the circumstances the result in the Pacific Westbound Conference case

is of questionable precedential value In any event however to the extent that

decision is inconsistent with the holding reached here it is expressly overruled

THEREFORE IT IS ORDERED That the Exceptions to the Initial Deci

sions of PWC are denied andIT IS FURTHER ORDERED That the Initial Decisions served August 21

1979 and August 22 1979 are adopted and made a part hereof and

Page 266: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

252 FEDERAL MARITIME COMMISSION

IT IS FURTHER ORDERED That these proceedings are discontinued

By the Commission

S FRANCIS C HURNEYSecretary

Page 267: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

SPECIAL DoCKET No 649

APPLICATION OF MAERSK LINE AGENCY FOR THE

BENEFIT OF NOMURA AMERICA CORPORATION

Adopted November 20 1979

Application for permission to refund portion of freight charges deniedConference and carrier applicants unintentionally deleted a specific commodity rate on a com

modity known as Butyl Motor Tube Scrap in the amount of 64 per weight ton when

republishing their tariffwith the result that a shipper of this commodity was required to payadditional freight costs However prior to filing this application the conference filed a new

corrective tariffwhich published a rate of 70 for the commodity involved rather than the rate

which had been deleted Because this new tariff does not conform to the earlier rate

the application is jurisdictionally defective for failure to satisfy the second proviso ofsection 18 h 3 of the Shipping Act 1916

If a new application preceded by a correct conforming tariff is filed by these applicants within the

180day time period prescribed by law the application can be given favorable consideration

Donald P Griffith for applicant Pacific Westbound Conference

Bryce J Herbst for applicant Maersk Line

INITIAL DECISION OF NORMAN D KLINE

ADMINISTRATIVE LAW JUDGE

This is a special docket application filed on June 11 1979 by the Pacific

Westbound Conference PWC and one of its members Maersk Line represented by the Maersk Line Agency seeking permission to refund a portion of

freight charged on a shipment of motor tube scrap which had moved under a

PWC tariffwhich had undergone revision and republication It is one of a series

of five special docket applications which were all filed on the same date Three

of these applications Special Docket Nos 648 650 651 Application ofMaersk Line Agency for the Benefit of CPC International Trading CorpFirestone Tire Rubber Co and Kimberly Clark Corporation 19 SRR 541

1979 were found to have fully qualified for relief under the applicableprovisions of section 18 b 3 ofthe Shipping Act 1916 the Act as amended

r This decision will become the decision ofthe Commission in the absence of review thereof by the Commission Rule 227 Rules

of Practice and Procedure 46 CF R S 502 227

mharris
Typewritten Text
253
Page 268: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

254 FEDERAL MARITIME COMMISSION

by P L 90 298 See Initial Decision July 10 1979 Another applicationSpecial Docket No 652 Application ofMaersk Line Agency for the Benefit

of Wespac Corparation is not yet ripe for decision because of the lack of

certain critical information which Iamseeking to obtain from PWc Decision

in the present case has been delayed pending receipt of further information as

more fully described below Now that this information has been receivedhowever Ifind that the application cannot be granted because of the failure ofthe applicants to satisfy one of the essential conditions set forth in that portionof section 18 b 3 which governs this type of proceeding namely the condition that a carrier or conference applicant must publish and file a new cor

rective tariff rate prior to the time of filing its application which new rate must

conform to the earlier rate which had been unintentionally deleted or had not

been filed through inadvertence As more fully discussed below whenever thefailure to meet this particular condition oflaw hasbeen found applications have

consistently been denied at least since thedecision ofthe Commission in Munoz

y Cabrero v Sea Land Service Inc 17 SRR 1191 1977Because of the apparent failure of the applicants to satisfy this requirement

Iadvised Mr Donald P Griffith Executive Assistant of the PWC who hadfiled the application that Idid not believe that Icould grant the applicationbecause of the decision in Munoz y Cabrero supra and other decisions whichhave consistently followed and have confirmed the principle involved IadvisedMr Griffith that applicants could continue to seek favorable action of their

application before the Commission notwithstanding Munoz y Cabrero butthatIwould have to issue an initial decision denying the application AlternativelyIadvised that the PWC could cure the defect in the application by filing thecorrect conforming tariff See my letter to Mr Griffith dated June 25 1979PWC has responded by letterdated July 9 1979 and chooses to seek favorable

action on the application on the basis of additional assertions and contentionsSee letter addressed to me from Mr Griffith dated as mentioned Havingconsidered these additional assertions and contentions however Ifind that the

application cannot be granted because PWC has still failed to satisfy theessential condition set forth in law and confirmed by Munoz y Cabrero and at

least four other decisions which continue to confirm the validity of that decision However Irepeat what I indicated in my letter to Mr Griffith namelythat if applicants would be willing to correct the jurisdictional defect regardingthe failure to file a correct conforming tariff this application if refiled timelycould be granted

FACTUAL BACKGROUND

The errorwhichgave rise to this application related to the fact that the PWC

completely revised and overhauled one of its tariffs and in so doing unin

tentionally deleted a special rate on a commodity known as Butyl Motor Tube

Scrap Prior to January I 1979 the pertinent PWC tariff Local and Overland Freight TariffNo 5 F M C 13 had published a special rate on ButylMotor Tube Scrap in the amount of 64 per weight ton of 1 000 kilogramsSee tariffcited 16th rev page 267 effective September 20 1978 PWC revised

Page 269: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPLICATION OF MAERSK LINE AGENCY 255

and republished this tariff effective January I 1979 by publishing a new tariffLocal and Overland Freight Tariff No II F M C 19 This tariff was a

substantial overhaul of the previous tariff in which both commodity descriptions and item numbers underwent revision In the process the special rate on

Butyl Motor Tube Scrap was unintentionally deleted See Affidavit of Donald P Griffith Executive Assistant to the PWC June II 1979 The result ofthis action was that any shipment of this commodity would be assessed undera new commodity item described as Synthetic rubber including the fol

lowing Butyl The special rate for this item was 96 per weight ton a

substantial increase 50 over the previous rate of 64 This error was calledto the PWCs attention by the shipper Nomura America Corporation byletter dated February 28 1979 Some time thereafter PWC restored a specialrate on Butyl Motor Tube Scrap effective March 28 1979 The special rate

which was published however was not the previous rate of 64 but rather 70

per weight ton See PWC Tariff No II F M C 19 3rd rev page 742effective March 28 1979 During the time in whichthe unintended rate of 96

per weight ton was in effect the Nomura America Corporation shipped two

containers laden with used butyl motor tubes which weighed 43 572 kilogramsThe shipment sailed on February 25 1979 from Long Beach Californiadestined for Osaka Japan The shipper paid 5 344 54 in freight rated underthe 96 rate including terminal receiving and currency adjustment charges

PWC and Maersk now seek to refund 1 370 77 in freight on the shipmentin question Iftheir application is granted this would mean that Maersk wouldretain only that amount of freight including the incidental charges based

upon a rate of 70 per weight ton not upon the 64 rate which had been

published before PWC changed its tariff on January I 1979 This 64 rate

furthermore was the rate which the shipper Nomura America Corporationspecifically requested to be applied retroactively to January I 1979 to eradicate the tariff error See letter to H Kinoshita Assistant Secretary NomuraAmerica Corporation addressed to Mr D D Day Jr Chairman PWC

February 28 1979 attached to the application

DISCUSSION AND CONCLUSIONS

This specialdocket application is filed under the remedial provisions of

section 18 b 3 of the Act and the pertinent Commission regulation Rule

92 a 46 C F R 502 92 a It is true that since this law is equitable andremedial in nature and is designed to relieve shippers offinancial burden whichwould fall on them because of carrier error in tariff publishing and filing thelaw has been construed liberally in order to carry out its purposes See egD F Young Inc v Cie Nationa e A gerienne de Navigation 18 SRR 1645

1979 GhiseiBros v Micronesia Interocean Lines Inc 13 F MC 179

182 1970 Westinghouse Trading Co v American Export Lines Inc 18

SRR 570 572 574 1978 However it is also true that this law is an exceptionto the equally strong principle that tariffs have the force and effect of law and

that any application seeking relief must show that it complies with the variousconditions set forth in the law ie that the error was bona fide and of a type

Page 270: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

256 FEDERAL MARITIME COMMISSION

contemplated by the statute that applicant has tiled a timely corrective tariffhas met the 18Oday period of limitation and that there will be no discrimination among shippers should the application be granted See e g Farr Co v

Seatrain Lines 17 SRR 1463 1467 1469 ID 1977 18 SRR 369 FM C

1978 and the legislative history to P L 90 298 cited in 17 SRR at 1467n 6 Hearings on H R 9473 Before the Subcommittee on Merchant Marineand Fisheries 90th Cong 1st Seas Sen No 90 11 1967 at 88 need to

ensure that applicant establishes that a bona fide mistake has occurred A E

Staley Mfg Co v Mamenic Line 18 SRR 433 1978 need to show that the

jurisdictional condition regarding actual tiling of a new tariffprior to application has been satisfied Level Export Sales Corp v Sea Land Service Inc 18SRR 1084 1978 need to tile application within 180 days after date ofshipment

It is important to bear in mind the fact that although denial of specialdocketapplications does indeed result in an additional financial burden for a shippercaused not by the fault of the shipper but by the fault of the carrier denialsdid occur in the cases cited above Furthermore it is important tokeep in mindthe factthat when the Congress gave the Commission authority to depart fromthe prevailing tariff law in the exeptional circumstances occurring in thesetypes of cases Congress did so on the understanding that the Commissionwould exercise that authority with care i e that each application would not be

merely rubberstamped but would be carefully scrutini7Ald by qualified judicialofficers For example in response to a concern expressed by CongressmanEdwards that the new legislation authorizing waivers and refunds from otherwise applicable tariffs would lead to rebating or other abuses and that suchapplications might merely mean a shipowner writing out a check to the

shipper the then Chairman of the Commission reassured the congressmanthat in addition to other conditionund controls to be written into the bill thecase would appearbefore the hearing examiner now administrative law judgebut under a very shortened procedure which we call special docket procedurein which there would have to be establishment of the fact that this isa bonafide mistake Hearings cited above at 88

One of the conditions which must be satisfied under the law in question isthat set forth as the second proviso in the remedial portion of section 18 b 3as amended by P L 90 298 This condition is stated as followsProvided further That the common carrier by water in foreign commerce or conference of such

carriers has prior to applying for authority to make refund filed a new tariftwith the FederalMaritime Commission which sets forth the rate on which such refund or waiver would bebased

It is this condition which iscritical to the application because of the fact thatthe Conference in tiling the new tariff which sets forth the rate on whichsuch refund or waiver would be based has tiled a rate different from thatwhich the shipper involved in this application had either been quoted or ex

pected to be charged prior to the time of the shipment and which the shipperhad specifically requested to be applied to the shipment by way of retroactiverelief There are now at least five decisions of the Commission or its administrative law judges which have become administratively final in which the

Page 271: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPLICATION OF MAERSK LINE AGENCY 257

principle has been clearly established that the new tariff filed to correct theerror in the tariff applicable at the time of shipment must conform to the rate

which had been quoted to the shipper or which the carrier or conference haddeleted by mistake when publishing its tariff At least one of these cases

furthermore involved the PWC itselfThe first of these cases is Munoz y Cabrero v Sea Land Service Inc 17

SRR 1191 1977 In that case the carrier had negotiated a rate of 44 W1Mfor a shipment ofglassware but inadvertently failed to file that rate prior to the

time of shipment When aware of the error Sea Land filed a corrective tariff

and a special docket application but instead of filing the 44 rate it filed a rate

of 40 The Commission after considering the legislative history of P L

90 298 and in full realization that denial of the application would mean that

the carrier s errors caused the shipper to incur greater cost nevertheless denied

the application statingSection 18 b 3 requires that prior to applying for a refund or a waiver the carrier file a new tariff

upon which such refund or waiver will be basedWhen read in conjunction with the statements

in the House and Senate reports it is clear that the new tariff is expected to reflect a priorintended rate not a rate agreed upon after the shipment17 SSR at 1193

In every case since Munoz y Cabrero in which the fact that the carrier had

filed a rate other than the prior intended rate was noted the application has

been denied Thus in Henry L Daty Inc v Pacific Westbound Conference 17

SRR 1439 1978 the PWC inadvertently increased a rate on ground claywhen republishing a portion of its tariff raising the rate from 56 W to

98 W thereby causing the shipper to bear a greater cost To correct this error

the PWC filed a special docket application but prior thereto filed the new

tariff in which the rate was not shown as 56 W but as 56 W subject to a

minimum weight for 20foot containers of 40 000 pounds The shipment in

volved could not meet this minimum weight with the result that the new

corrective tariff not only did not correspond to the earlier flat 56 W rate but

the freight also differed The application was therefore denied for failure to

meet the second condition set forth in the statute

In Owens Jinois Co v Trans Freight Lines Inc 19 SRR 170 InitialDecision F M C Notice of finality May 9 1979 the carrier had agreed to

file a lump sum rate of 1 800 per container for expansion tanks but failed to

do so in time for the shipment But before filing its application the carrier filed

a new corrective tariff in the amount of 36 WM minimum 2200 ft per

container instead of the quoted 1 800 rate The application was denied

In Application ofNeptune Orient Linefor the Benefit ofStauffer Chemical

Co 19 SRR 451 Initial Decision F MC Notice of finality July 23 1979

the carrier filed a new tariff rate of 62 W on lactose instead of a rate of 58

per 1000 kilos which had been quoted to the shipper This was one of the

reasons for the denial of the application 2

The other reason for denial related to the fact that the carrier was a controlled carrier under the Ocean Shipping Actof

1978 and the facts showed that because the carrier realized certain restrictions on its ability to file reduced rates it oould not show

that there was an inadvertent failure to file an intended rate

Page 272: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

258 FEDERAL MARITIME COMMISSION

Most recently in Application of Sea Land Service Inc for the Benefit ofNepera Chemical Inc 19 SRR 235 Initial Decision April 20 1979 whichdecision has been adopted by the Commission according to a Commission

press release dated June 27 1979 3 the carrier failed to conform its new tarifffiled prior to the special application to the earlier rate which it had quoted andhad intended to file prior to the shipment in question The earlier rate had been6 85 per hundredweight minimum 40 ooolbs However the new corrective

tariffpublished a rate of 162 25 per weight ton of 2240 lbs minimum 17 WT

On exceptions to the Commission Sea Land explained that this new rate was

really only slightly different from the previous rate considering Sea Land s

stowage factors and that relief should not be denied because of such a slightvariance Nevertheless the Commission announced that it has adopted theinitial decision By this action Sea Land will be required to recover over

42 000 in additional freight from the shipper In that case furthermoreSea Land had waited until the very last day of the ISO day period to file itsapplication so that there was no time for it to file a proper corrective tariff andanother application

In view of these cases which consistently deny applications when the carriersfailed to conform their corrective tariffs with the previously quoted or intendedrates it is clear that these two applications must also be denied The fact

remains that PWC did not file a 64 rate on butyl motor tube scrap which hadbeen intended but which PWC had inadvertently deleted but filed a 70 rate

instead As mentioned above Icalled this problem to PWC s attention by letterof June 25 1979 to afford PWC an opportunity to pursue the application andseek to overturn the doctrine followed in the cases cited or in the alternativeto file a proper corrective tariff and a new application PWC has chosen to seek

approval ofthe application notwithstanding the case law and has called several

matters to my attentionPWC points out that it had given approximately six months notice to ship

pers that a rate increase would occur on April 1 1979 This means that theshipper in this application was put on actual or constructive notice that the ratewould increase from 64 to 70 on that date PWC argues that had it not

committed an error in republishing its tariff on January 1 1979 the quotedrate wouldhave been published as 64 subject to the April 1 1979 general rate

increase which brought the rate up to 70 All that PWC did was to advancethe increase on the 64 rate to 70 effective March 2S 1979 PWC explainsthat the reason why it advanced the rate increase on the 64 rate fromApril 1 1979 to March 2S 1979 was that the Conference considered it more

prudent to incorporate the general rate increase on March 28 for Item7711440 20 rather than have a 64 Wt rate in effect subject to Supplement

No 2 which would have increased this rate to 70 00 Wt on April I Seeletter of D P Griffith PWC Executive Assistant July 9 1979

Alternatively PWC suggests that the applications should be granted byallowing the 64 rate to apply from January 1 through March 27 1979

lSee NR 79 68 Actions Taken Ilt June 27 1979 Commission Meeting agenda item No 8 at 2 The Commission Reporthas been served on August 8 1979

Page 273: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPLICATION OF MAERSK LINE AGENCY 259

Finally PWC cites another special docket Special Docket No 631 in whichit claims that the application was granted under similar circumstances

Regrettably Ido not believe that this application can be granted on any ofthe grounds advanced by PWC and adhere to my earlier belief that the onlyproper way in which PWC could obtain favorable action would be to file a

correct new tariffshowing the 64 rate quoted to the shipper prior to the filingof a new application Even now there is time to do this since the ISO day perioddoes not expire until August 24 1979 ISO days after date of sailing which was

February 25 1979

It is impossible to grant relief based upon the 64 rate on a retroactive basisas PWC suggests in one alternative because of the fact that the 64 rate is not

on filewith the Commission Section IS b 3 requires in pertinent portion that

prior to filing the application the applicant must file a new tariff with theFederal Maritime Commission which sets forth the rate on which such refundor waiver would be based Failure to meet this requirement is ajurisdictionaldefect which cannot be waived See A E Staley Mfg Co v Mamenic Lines17 SRR 1522 l97S Louis Furth Inc v Sea Land Service Inc 17 SRR1171 1977 In both of the cited cases applications had to be denied becausethere was no filing ofthe actual rate on which relief was requested prior to thetime of filing the application

PWC s reference to Special Docket No 631 is not sufficient to justifygranting its application In Special Docket No 631 Application ofPacificWestbound Conference for the Benefit of M C International 19 SRR 333

Initial Decision May 14 1979 F MC Notice of no review and administrative finality June 2S 1979 the PWC inadvertently deleted a specificcommoidity rate on playing cards when republishing its tariff on January I1979 Upon receiving a letter from the shipper complaining of this mistake thePWC reinstated the specific commodity rate on playing cards but as in SD

No 649 filed the new corrective tariffeffective March 2S 1979 and advanced

the general rate increase which was scheduled to become effective on April I

1979 for playing cards as compared to the previous rate which had been

deleted The facts seem to be the same as those in SD No 649 However

neither the initial decision nor the Commission s notice which merely an

nounced that no review had been undertaken by the Commission made anyreference to the Munoz y Cabrero problem Had there been any reference to

this problem there might have been a different result or a decision that the

Munoz y Cabrero doctrine should no longer be followed With no reference to

the problem by either the Commission or the presiding judge however I

cannot conclude that this casemeans that the Munoz y Cabrero doctrine is no

longer to be followed in the face of the fact that in at least five cases cited

above where the problem has been specifically identified Munoz y Cabrero

has been expressly followed and where in the last of these cases ApplicationofSea Land Service Inc for the Benefit ofNepera Chemical Inc 19 SRR

235 supra the Commission s final decision which will undoubtedly be issued

in the near future will come later than the notice of administrative fmalityissued on June 2S 1979 in Docket No 631

Page 274: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

260 FEDERAL MARITIME COMMISSION

PWC s argument that all it did in this case was advance the general rate

increase to 70 by a few days may seem appealing Also the fact that the

shipper would be happy to accept a 70 rate rather than the higher 96 rate

in effect at the time of the shipment is no doubt a truism However these

arguments still miss the point namely that all that PWC had to do to obtainfavorable action was to refile a correct tariff rate with a new application so as

to eliminate the Munoz y Cabrero problem The excuse that the Conferenceconsidered it more prudent not to publish the 64 rate but to accelerate the

increase to 70 is obviously not prudent at least in terms of seeking specialdocket relief if it means a hopeless collision course with the Munoz y Cabrerodoctrine PWC s standing to argue an exception to the Munoz y Cabrerodoctrine is weakened moreover by several considerations First in the otherthree special docket applications to which Ireferred above SO Nos 648 650

and 651 all involving mistaken deletions or typographical errors in PWC s

republished tariffs PWC showed itself perfectly capable of filing the new

corrective tariffs to conform exactly to the rates previously deleted or intended

Secondly in one of these cases SO No 648 for the benefit of CPC Inter

national Trading Corp PWC correctly published a new conforming tariff in

the very same tariff involved in the two applications under consideration

namely Tariff No 1I FM C 19 effective January 17 1979 Apparentlythe reason why PWC did not include the April I general rate increase in thenew tariff rate filed in SO No 648 was that January 17 is not nearly so closeto April I as is March 28 the effective date of the new tariff rate in SONo 649 in which PWC did include the general rate increase in the new tariff

Thirdly PWC is fully aware of the Munoz y Cabrero doctrine having beendenied relief in the case of Henry I Daty Inc v Pacific Westbound Conference supra 17 SRR 1439 only last year in which case PWC made the same

error of changing the new corrective tariff so that it did not conform to theearlier rate which had been inadvertently deleted from the PWC tariff

Nevertheless PWC despite the fact that it is aware of the Munoz y Cabrerodoctrine and has been specifically advised in this application by my letter ofJune 25 1979 that its application fails to satisfy the principle enunciated in

Munoz y Cabrero and additional cases following that principle chooses not to

refile a correct new tariff with a new application Perhaps the reason for thisreluctance is the fact that if the new tariffwere to be filed correctly with a rateof 64 as the shipper expected and requested this rate would have to remain

unchanged for 90 days in the tariff because of the 9 day notice requirementof section 14b2 of the Act governing dual rate contracts since the rates

concerned are contract rates PWC has already manifested a desire to increaseits rates generally in its Tariff No II effective on April I 1979 and apparentlyis not inclined to favor the commodity involved in this application by grantingit a rate reduction from 70 to 64 which would remain unchanged until some

time in the autumn when the 9oday notice period would expire That is a

decision which PWC is entitled to make and indeed the entire specialdocketstatute does not require a carrier or conference to seek relief for shippers at all

which action at least PWC has initiated However if PWC believes it to be

unwise to make the correction suggested so as to conform to prevailing law

Page 275: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPLICATION OF MAERSK LINE AGENCY 261

there is nothing Ican do to authorize permission to make a refund Accordingly notwithstanding the fact that PWCs tariff errors will result in the

shipper s having to bear an additional 1 370 77 in freight this applicationunder the present circumstances cannot be granted

ULTIMATE CoNCLUSIONS

This special docket application cannot be granted under the present circumstances Although there did occur an error in the PWC tariff of a clerical or

administrative nature because of unintentional deletion of a specific commodityrate and the shipper concerned was unable to enjoy the rate which it hadbelieved would be applicable when booking the shipment PWC and Maerskhave failed to comply with an essential condition set forth in section IS b 3of the Act namely the requirement that the new corrective tariff filed priorto filing of the application set forth the identical rate which conforms to theearlier intention of the conference and carrier Instead PWC filed a new tariffwhich publishes a rate different from the unintentionally deleted rate whichPWC had earlier intended to remain at 64 during the period January I 1979

through March 31 1979 not 70 which was supposed to become effective on

April I 1979 not earlier Consequently the subsequent idea to apply theincreased rate retroactive to this earlier period of time does not conform to theearlier intent

The application must therefore be denied but it is still not too late for it to

receive favorable consideration if PWC and Maersk would promptly file a

correct conforming tariff and a new application so that the essential jurisdictional condition regarding the conformance of the new tariff rate to the priorintended rate would be satisfied IfPWC also meets the ISOday time periodending on August 24 1979 and is willing to retain the correct conforming

rate in its tariff increasing it to the 70 level on 90 days notice it would appearthat the jurisdictional defect in its present application would be cured

8 NORMAN D KLINEAdministrative Law Judge

WASHINGTON D C

August 8 1979

410 every case in which aspecial docket application has to be denied ofcourse the result is that the shipper hasto bear additional

freight costs although not at fault This has been recognized in the cases cited but cannot be helped See eg Munoz y Cabrero

v Sea LandService Inc supra 17 SRR 1191 at p 1193 In Application ofSea LandService Inc for he Benefit ofNeperaChemical Co supro 19 SRR 235 notethat the denial meant that Sea Land must seek an additional 42 000 in freight from

the shipper At least in the present application the amount of additional freight is relatively small by comparison something over

51 000 and the shippers havealready paid this amount so that there will be no need for applicants to billthemfor additional sums

Page 276: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

FEDERAL MARITIME COMMISSION

SPECIAL DOCKET No 652

ApPLlCAT ON OF MAERSK L NE AOENCY

FOR THE BENEF T OF WESPAC CORPORATION

Adopted November 20 1979

Application for permission to refund portion of freight charges denied

Conference and carrier applicants unintentionally deleted specific commodity rate of 04 for

insulating materials when republishing their tariff with the result that the shipper con

cerned was required to bear additional freight cost However prior to filing this specialdocket application the conference filed a new corrective tariff which published a rateof

114 rather than the rate which had been deleted in order to incorporate a general rate

increase into the new rate Because this new tariff does not conform to the earlier rate

which had been quoted to the shipper but deleted in republishing the application is

jurisdictionallydefective for failure to satisfy the second proviso of section 8 b 3 of the

Shipping Act 1916If a new application is filed preceded by a correct conforming tariff filing which reinstates the

04 rate and the application is filed within the 80 day time period prescribed by law

which still has considerable time to run the application can be given favorable

consideration

Donald P Griffith for applicant Pacific Westbound Conference

Bryce J Herbst for applicant Maersk Line

INITIAL DECISIONI OF NORMAN D KLINEADMINISTRATIVE LAW JUDGE

This is the last of a series of five special docket applications all filed on

June 11 1979 by the Pacific Westbound Conference PWC and one of its

members Maersk Line represented by the Maersk Line Agency seekingpermission to refund portions of freight charged on various shipments whichmoved under PWC tariffs which had undergone revision and republication In

all five of these cases the PWC had made errors of a clerical or administrativenature by deleting commodity rates or descriptions or by otherwise publishingerroneous matters in the tariffs with the result that various shippers were

This decision willbecome the decision ofthe Commi881on in the absence of review thereofby Ihe Commiuion Rule 227 Rulea

of Practice and Procedure 46 CF R 5502 227

mharris
Typewritten Text
mharris
Typewritten Text
mharris
Typewritten Text
mharris
Typewritten Text
mharris
Typewritten Text
262
Page 277: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPLICATION OF MAERSK LINE AGENCY 263

adversely affected Three of these applications were found to have qualifiedfully for relief under the applicable provisions of section 18 b 3 of the Shipping Act 1916 the Act as amended by P L 90 298 See Special Docket Nos648 650 651 Application ofMaersk Line Agency for the Benefit of CPCInternational Trading Corp Firestone Tire Rubber Co and KimberlyClark Corporation Initial Decision served July 10 1979 19 SRR 541 Another application was found not to have qualified because of a jurisdictionaldefect relating to the fact that the PWC failed to file a correct conformingtariff rate prior to the filing of the application in contravention of the requirements of the second proviso of section 18 b 3 and the doctrine enuciated bythe Commission in Munoz y Cabrero v Sea Land Service Inc 17 SRR 1191

1977 and at least four cases which follow the Munoz doctrine See SpecialDocket No 649 Application of Maersk Agency for the Benefit ofNomuraAmerica Corporation Initial decision served August 21 1979 19 SRR 689

In both Special Docket No 649 and the instant case Iadvised the PWC ofthe jurisdictional defect and gave PWC the option to continue to seek favorableconsideration of the applications notwithstanding the Munoz y Cabrero doctrine or to filea new application preceded by a correct conforming tariffwhichwould reinstate the earlier deleted rates exactly as they had been quoted and

published in the earlier tariffs See letter which Iaddressed to Mr Donald PGriffith PWC Executive Assistant dated June 25 1979 PWC responded andchose to continue to seek favorable consideration of both applications on thebasis of certain statements and arguments See letter dated July 9 1979 fromMr Griffith to myself Ihave considered the matters discussed by Mr Griffithin his letter and remain of the opinion that this application as well as that in

Special Docket No 649 cannot be granted because the jurisdictional defecthas not been corrected However as in No 649 I reiterate that favorableconsideration to the instant application could be given if PWC were to eliminate the defect by filing a correct conforming tariff and a new application

FACTUAL BACKGROUND

The facts in this case are relatively simple It appears that PWC had

published a tariff in 1978 for the carriage of cargo between Pacific Coast portsand ports in various Far East countries This was PWC Local and Overland

Freight TariffNo 5 F M C 13 EffectiveJanuary I 1979 PWC overhauledand republished this tariff changing commodity descriptions and item num

bers In the present case PWC had published a special rate for Mineral

Insulating Material N O S in its previous tariffin the amount of 1 04 W1Mfor local movements to Bangkok Thailand See tariff No 5 cited IIth revised

page 392 effective September I 1978 In republishing the tariff howeverPWC inadvertently deleted this special commodity rate Consequently anyshipment of the type ofmineral insulating material in question became subjectto a rate of 201 W1M moving to Bangkok Thailand under an N O S

commodity description published as Non Metallic Minerals and Products

Except Ceramic Products and Glass and Glass Products N O S See PWCTariffNo ll F M C 19 3rd rev page 489 effective January I 1979 PWC

Page 278: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

264 FEDERAL MARITIME COMMISSION

was notified of this tariff error by a shipper Wespac Corporation who had

shipped this commodity while the 201 W1M rate was applicable Wespac byletter dated April 10 1979 requested that the PWC file a special docketapplication to restore the 104 rate which the shipper had been quoted byMaersk in November 1978 and requested that the 104 rate be made retro

active to March 1979 See letter addressed to the PWC by Mr John A

Carambat dated April 10 1978 The PWC responded to the request bypublishing and filing a new special rate on the commodity in question effective

April 25 1979 and after receiving a second letter from the shipper by filingthis specialdocket application However as noted the new special rate whichPWC filed was not the 104 rate which the shipper requested but rather a rate

of 114 The reason why the PWC published this latter rate rather than thelower rate requested was the fact that on April I 1979 there occurred a

general rate increase which raised 104 to 114

During the time in which the 201 rate was in effect the shipper shipped13 726 cubic meters of insulating material on a Maersk vessel which sailedfrom Oakland California on April 6 1979 The shipment was destined forBangkok Thailand The shipment as rated under the 201 rate was assessed2 758 93 in freight exclusive of incidental charges The PWC and Maersk

wish to refund the amount of 1 19417 which would result in Maersk s

retaining freight charges calculated on the basis of the 114 rate not the 104

rate which the shipper had been quoted and which the shipper had requestedto be made applicable to the shipment

DISCUSSION AND CONCLUSIONS

The principles of law which govern this case are precisely the same as those

discussed in my initial decision in Special Docket No 649 Application ofMaersk Line Agency for the Benefit of Nomura America Corporationsupra Very briefly this application like the other cannot be granted becauseof the failure of the PWC to satisfy the second proviso of section 18 b 3 of

the Act and the principles of law enunciated in the five cases cited in that

decision beginning with Munoz y Cabrero v Sea Land Service Inc The

proviso has to do with the requirement that applicants must file a new con

forming tariff prior to the time of filing their applications which new tariffpublishes the same rate which had been unintentionally deleted This principleand the relevant cases are discussed in more detail in the other decision andneed not be repeated here The only distinction between the two cases lies in

the fact that in this case the PWC filed the new tariffafter the effective date

of the general rate increase which as Imentioned was April I 1979 whereas

in the othercase the PWC filed the new tariff a few days prior to the effective

date of the increase In both cases the PWC urges that Inot follow the Munoz

y Cabrero doctrine and argues that the shippers had notice of the April I

increase approximately six months before that date so that retroactive application of the increased rates rather than the originally quoted rates should be

permitted Ihave discussed these arguments in my initial decision in SpecialDocketNo 649 to which the reader is referred and see no need to repeat them

Page 279: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

APPUCAnON OF MAERSK LINE AGENCY 265

here In short none ofthe PWC s assertions corrects the fact that the PWC hassimply not filed the proper conforming new rate and chooses not to refile itsapplication with a corrected new rate Under the circumstances there is no wayin which I can find that the application can be granted notwithstanding thefact that the shipper will not be entitled to receive a refund for additionalfreight charges which were caused by carrier not shipper error So long as thePWC has filed only the 114 rate rather than originally quoted 104 the onlyrate on which a refund could be based would be 114 since the statute requiresthe carrier or conference to file a new tariff which sets forth the rate on whichsuch refund or waiver would be based The only conceivable way in which itcould be argued that the shipper would be entitled to a refund on the basis ofthe 114 rather than the 104 rate would be the fact that the shipper wasaware of the rate increase which was to take effect on April I 1979 andshipped on or after that date when the 114 rate would apply However thesefacts cannot be established On the contrary the shipper in two letters re

quests that the 104 rate be applied and that it be made retroactive to March1979 Furthermore evidence which the PWC has furnished at my request quitehonestly reveals that the shipper sent the shipment to the terminal prior to

April I 19792

Under the PWC tariffs effective date of rate change rule a

shipment received at the carrier s terminal prior to April I to be loaded on a

vessel sailing within 10 days of that date would be rated under the previousunincreased rate See Rule 3 12 PWC Tariff No II 3rd rev page 53Therefore the shipment would have qualified for the 104 rate had it beenpublished in the PWC tariff Had the shipment been received on or afterApril I 1979 it could be argued that the proper rate was 114 and that sincethis rate has been filed with the Commission by the PWC the refund can begranted on the basis of the higher rate Ican understand that the PWC whenfiling the new tariff of April 25 1979 filed the rate subject to the April Iincrease therefore inserting a rate of 114 into the tariff rather than 104However this business decision while conforming to the longstanding intentionofthe PWC to increase its rates on April I 1979 does not conform to its earlierintention that a rate of 104 should apply from January 1 to March 31 1979That is so because the PWC is aware that if it wishes to apply the 104 rateto the period January I through March 31 1979 by means of this specialdocket application the statute and case law require that it file the 104 rate

3

2Although the only way in which I believed it might be possible to grant this lppIication with only the 114 rate on file wouldbe if the shipment wureceived by the carrier IIhe terminal on or after April I under the pertinent cffeetivedale of rate changerule Mr GriffIth at my ueat fumilhed me with evidence thai tbe sbipment arrived Itthe terminal on Mareh 27 1979 SeePort of San Pnncisco Fright ConaoIidltion SlMion meipt No 13212 Mr Oriffith has coopenrcd in an effort to give me afulland complete record even when the evidence does not help his position and bu conscientiously striven to persuade me Ibat the

appIicItion should be grudIed However I cannot qree with hi IrgUments and believe that under lppIicabIe principles of law his

onlymouncistopersuade thePWC to file thecorrect conformina tariffrate

I AII mentioned in my inidal decision in Special Docket No 649 the PWC wuinvolved in one of tbe MIUIOZ y Cabnro typecues in which its lIIPIk lltion had to be denied for failure to file the correct conformina tariff rate 1bc cuewas Henry I Dalylite v Pacific Werrbowld Cottferenu 17 SRR 1439 1978 MOftlOVCI in my letterand telephonic conversations with Mr Griffithof the PWC I advised him of tbcsc QIC8 and the need in my opinion for PWC to file the SUM rate if it wisbcd 10 have the

wUcuion granted In faimeu to Mr Griffith I should 8dd that he has the right to urge the Conumuion to ftlvene ormodifythe MIIlfOZ y Cabrero doctrine and be bu cited another special docket cue SD No 631 in which IppIiCllion WI8 gnntedaItbougb the new tariff bad alto incorponlled aeneral rue increue into the IItCned thereby cbangilll it from the pmriouIlIICwbkh bad been deleted As I mentioned in my inidal decilion in Special Docket No 649 however it does not appear that theMIIIIOZ Y Cabnro problem was noted in the deci ion in SD No 631 Moreover if appIicanta ue allowed to dlaoge their ntcs

Page 280: DEQSIONSTHEFEDERALMARITIMECOMMISSIONVOLUMEUSGOVERNMENT1979WASHINGTONbySuperintendentofDocumentsGovernmentWashingtonOffice20402 · plS Al u q Allq fO pUll ZO Slllld S M IllUH AMVWwns

266 FEDERAL MARITIME COMMISSION

ULTIMATE CONCLUSIONS

Theapplication in this case as in a companion case Special Docket No 649cannot begranted because ofa jurisdictional defect relating to thefact that thePWC has not filed a new corrective tariff which publishes a rate whichconforms to the rate which had been quoted to the shipper and had beenunintentionally deleted from the PWC s republished tariff This defect is fatalbecause the second proviso ofsection 18 b 3 and a least five decisions of theCommission and its administrative law judges emphasize that the new ratemust conform to the earlier quoted or deleted rate Unless the PWC is willingto file the quoted and deleted rate of 104 together with a new applicationthere simply is no way in which the shipper can begiven a refund The fact thatthe shipper will receive no refund though the PWC erred in publishing its tariff

may be unfortunate but the remedy is for the PWC to refile a correct con

forming tariff with a new application Any alternative solution would requirethe Commission to disregard the second proviso of section 18 b 3 and fivedecisions arising thereunder so that special docket applications can be openedto abuse and unsavory pressures

Since the shipment sailed on April 6 the PWC can still refile its applicationpreceded by a correct conforming tariff at any time up till October 3 1979

180 days after April 6 1979 in which event its application can be givenfavorable consideration if no further errors or defects appear

The application must therefore be denied

WASHINGTON D C

August 13 1979

8 NORMAN D KLINE

Administrative Law Judge

from those quoted orpublished earlier on which shippers relied the specialdocket procedure oould be open toabuse for exampleif shippers could insist that carrien file even lower rates than those quoted earlier for retroactive application and refunds in

special docket cases