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FEDERAL MARITIME COMMISSION-SALARIES AND EXPENSES
Program and financing
[In thousands of dollars]

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The purpose of this request is to provide additional funds in fiscal year 1962 for administration of the Commission's statutory responsibilities in connection with legislation enacted subsequent to submission of the annual estimates.

Public Laws 87-254 and 87-346, approved September 19 and October 3, 1961, respectively, relating to licensing independent ocean freight forwarders, and, regulation of dual-rate contracts, conference agreements, and the form and manner of filing tariffs by common carriers in the foreign trade, have imposed not only a long-range workload, but also a very immediate requirement to permit timely compliance with the intent of the legislation.

This is not a deferrable workload. It has already become manifest by reason of performance dates specified in the legislation, namely, January 17, 1962, for filing freight forwarding applications, and, April 3, 1962, for action by the Commission on conference agreements that embody dual-rate systems. In addition, the statute now requires the filing of foreign tariffs by inbound as well as outbound carriers, with a 30-day advance notice provision for new or increased rates.

Rules and regulations must be promulgated and orders issued in connection therewith, applications must be processed, bonding provisions developed, agree ments examined for compliance, procedures established, form and manner of tariff filing prescribed, tariffs examined, hearings scheduled, investigations made, and complaints resolved. Practically all of the major bureaus of the agency become involved in one or more aspects of these added responsibilities.

The following indicates the magnitude of the immediate workload generated by this new legislation:

(1) 1,000 freight forwarders exercised "grandfather rights" by applying for license within the time prescribed;

(2) There are 61 dual-rate systems in effect, each of which must be examined for compliance with the new statute;

(3) 450 new foreign tariffs have been filed since enactment of the new legislation; and

(4) Substantial amendments have been filed to previously submitted tariffs (9,961 separate filings received between December 11, 1961, and January 12, 1962).

Every effort is being made by the present staff to accomplish this program on a "first things first" basis but without additional staff relief the true purposes of the legislation cannot be properly implemented. Presently available funds permit only a limited staff of 153 positions this fiscal year to administer the statutory functions of the Commission as they were prior to enactment of Public Laws 87-254 and 87-346. This new legislation has practically doubled the workload in all areas. In order to provide for effective implementation of the provisions of the new legislation, supplemental funds are required to permit a staff increase of 128 positions at the earliest possible date in fiscal year 1962. The cost of this proposed staff increase in 1962, together with other objects of administrative expense in support thereof, is estimated to be $330,000.

JUSTIFICATION

Upon establishment of the Federal Maritime Commission as an independent agency under Reorganization Plan No. 7 of 1961, $1,266,000 was transferred to the Commission from funds appropriated to the Federal Maritime Board/ Maritime Administration to carry out the functions transferred pursuant to the reorganization plan. An additional $40,000 was appropriated to the Commission to cover the cost of salaries for two Commissioners not covered by the transfer.

The reorganization plan placed great emphasis on increased effectiveness of the regulatory activity of the Commission, and, organizational components have been established to accomplish this directive. In addition to the establishment of a new organizational structure, the Commission has delegated certain of its authorities to appropriate officials and the Chairman has made an assignment of functions to the organizational components. These actions. consistent with the provisions of section 105 of Reorganization Plan No. 7 of 1961, and sections 1 and 2 of Reorganization Plan No. 6 of 1949, have resulted in a distribution of program functions as follows:

The Office of the Secretary is responsible for preparing agenda and dockets of matters subject to action by the Federal Maritime Commission and the preparation of minutes with respect to such actions; issuing orders and notices of actions of the Commission; receiving formal communications, petitions, notices, documents, and other instruments directed to the Chairman and/or the Commission, and maintaining official files and records with respect thereto; authenticating instruments or documents of the Commission; administering oaths; and issuing subpenas at the direction of the Commission.

The Office of the General Counsel serves as the law office of the Commission and provides legal counsel to the Commission and its staff; reviews and approves as to legality and/or prepares proposed Commission rules, regulations, and orders prepares drafts of proposed legislation and reports to congressional committees; represents the Commission in all matters before the courts.

The Office of Hearing Examiners holds hearings and renders decisions therein in formal rulemaking and adjudicatory proceedings as provided in the Shipping Act, 1916, as amended and other applicable laws, in accordance with the Administrative Procedures Act and the Commission's Rules of Practice and Procedure.

The Executive Director exercises direction over and interprets agency policy to the Bureau of Investigation, Bureau of Financial Analysis, Bureau of

Domestic Regulation, Bureau of Foreign Regulation, and the Bureau of Administrative Proceedings; assists, advises, and consults with the Chairman and/or the Commission in the performance of major executive functions; supervises an Office of Information Services and an Office of Administrative Management. The Bureau of Foreign Regulation reviews the rates and practices of common carriers by water engaged in the foreign commerce of the United States and conferences of such carriers in accordance with the requirements of law and the rules, orders, and regulations of the Commission; examines, processes, and as appropriate prepares recommendations to the Commission with respect to activities and practices of common carriers by water in the foreign commerce and conferences of such carriers and with respect to agreements and tariffs filed by such common carriers and conferences; reviews annual and special reports filed by common carriers by water and conferences in the foreign commerce of the United States, including minutes of conference meetings; initiates action involving the granting of special permissions to waive advance tariff filing requirements, or to depart from rules and regulations governing publication of tariffs; recommends the institution of rulemaking proceedings, and where appropriate prepares drafts of rules and otherwise assists in the promulgation of rules; reviews informal complaints and protests against the practices, methods, and operation of common carriers or conferences or against existing or proposed tariffs of such carriers or conferences and (1) requests the Bureau of Investigation to develop additional information and data through field investigations; (2) concludes complaints and protests by voluntary agreement between the parties or by administrative determination that the complaint or protest fails to represent a violation of the shipping statutes or the rules, or orders of the Commission; (3) prepares recommendations, collaborating with the Bureau of Administrative Proceedings, for formal action and proceedings by the Commission; and/or (4) refers, as appropriate, complaints, and protests to the Bureau of Investigation for action by that Bureau.

The Bureau of Domestic Regulation reviews the rates and practices of common carriers by water engaged in the domestic offshore commerce of the United States and conferences of such carriers in accordance with the requirements of law and the rules, orders, and regulations of the Commission; examines, processes, and as appropriate prepares recommendations to the Commission with respect to activities and practices of common carriers by water in the domestic offshore commerce of the United States and conferences of such carriers, and with respect to agreements and tariffs filed by such common carriers, conferences, terminal operators, and freight forwarders; takes and/or initiates action involving the rejection of improper or incorrectly filed tariffs, granting of special permissions to waive the advance filing or publication requirements of tariffs, suspension of rates, and as appropriate the prescription of reasonable maximum and minimum rates; reviews annual and special reports filed by domestic offshore carriers, conferences, terminal operators, and freight forwarders, including minutes of conference meetings; receives and processes applications for licensing of freight forwarders; recommends the institution of rulemaking proceedings, and, where appropriate drafts of rules and otherwise assists in the promulgation of rules; reviews informal complaints and protests against the practices, methods and operations of common carriers, terminal operators, freight forwarders, or conferences, or against existing or proposed tariffs of such common carriers, terminal operators, freight forwarders, or conferences, and (1) requests the Bureau of Investigation to develop additional information and data through field investigations; (2) concludes complaints and protests by voluntary agreement between the parties or by administrative determination that the complaint or protest fails to represent a violation of the shipping statutes or the rules or orders of the Commission; (3) prepares recommendations, collaborating with the Bureau of Administrative Proceedings, for formal action and proceedings by the Commission: and/or (4) refers, as appropriate, complaints and protests to the Bureau of Investigation for action by that Bureau.

The Bureau of Administrative Proceedings acts as hearing counsel in all formal investigations, nonadjudicatory investigations, rulemaking proceedings and any other proceedings initiated by the Federal Maritime Commission under the Shipping Act, 1916, and other applicable shipping acts; examines and cross-examines witnesses, prepares and files briefs, motions, exceptions, and other legal documents and participates in oral argument before the hearing examiners and the Federal Maritime Commission; acts as hearing counsel, where intervention is permitted, in formal complaint proceedings initiated under

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