8. Exhibit "B," Page 24: [Part of Item 15] EXHIBIT "B."-Estimated freight revenue-Present conference rates-September 11, 1946, Victory or C-2 vessel-Eastbound Exhibit "C"-Estimated round-trip expenses, present expense basis-171⁄2 kn. Victory-vessel, 50 passengers Passenger Expense: miles per day- bbls. 5, 700 _bbls__ 360 6,060 12, 120. 00 50 passengers subsistence at $1.75 per day for 20 days. $1,750 Entertainment 31, 500.00 6, 753.60 2, 110. 50 Equipment-- Commission Pier Expense. Port Charges.. Overhead Total Round Trip Expenses.... 1,000 1,000 1,000 4, 750.00 3,000.00 4,000.00 4,000.00 102, 590. 10 Erhibit III (1).—The Arnold Bernstein Steamship Corporation balance sheet as at June 21, 1946 150, 000. 00 $100, 000. 00 342, 666. 12 587, 230.68 Total Current Liabilities.... Mortgage on S. S. ORBIS held by Woburn Trading Corp Preferred Stock Common Stock__ Total Capital___ Total Liabilities-Capital____ STATE OF NEW YORK, County of New York, ss: I. ARNOLD BERNSTEIN, being duly sworn, depose and say that I am the President of THE ARNOLD BERNSTEIN STEAMSHIP CORPORATION, the Application on whose behalf I have executed the foregoing application; that the Applicant is a citizen of the United States within the meaning of the Shipping Act. 1916, as amended (U. S. C., Title 46, sec. 802), and section 905 (c) of the Merchant Marine Act, 1936, as amended; that this application is made for the purpose of inducing the United States Maritime Commission to take the action requested herein, pursuant to the provisions of the Merchant Ship Sales Act of 1946, and particularly to Title VII, as amended, thereof; that I have carefully examined the application and all documents submitted in connection therewith and, to the best of my knowledge, information, and belief, the statements and representations contained in said application and related documents are full, complete, accurate, and true. ARNOLD BERNSTEIN. Subscribed and sworn to before me, a Notary Public, in and for the State and County above named, this 4th day of October 1946. BEFORE THE UNITED STATES MARITIME COMMISSION APPLICATION OF BLACK DIAMOND STEAMSHIP CORP. FOR OPERATINGDIFFERENTIAL SUBSIDY UNDER TITLE VI, MERCHANT MARINE ACT, 1936 The undersigned Applicant, Black Diamond Steamship Corp., a citizen of the United States, hereby applies under Title VI of the Merchant Marine Act, 1936 (herein referred to as the Act), for financial aid in the operation of vessels which are to be used in the essential service in the foreign commerce of the United States, and in order to induce the Commission to act favorably on this application, the Applicant submits in support of its application the following information conforming itself to the requirements of form VI-A, adopted as the required form of application by the Commission under its General Order No. 13 of September 17, 1937: A. AS TO THE APPLICANT; ITS CITIZENSHIP AND AFFILIATIONS 1. Black Diamond Steamship Corp. 2. Corporation. 3. State of Maryland. 4. 39 Broadway, New York, 6, New York. 5. (a) and (b) Applicant has no subsidiaries. All of its outstanding stock is owned by Black Diamond Steamship Company, a partnership organized under the laws of New Jersey. Neither Applicant nor the partnership is affiliated with any other company, or engaged in business other than shipping. The partners and the extent of their financial interest are, Victor J. Sudman 55%, Michael J. Hanlon 15%, John E. Dockendorff 15%, and Albert C. Valentine 15%. 7. No other stockholders. For proof of American citizenship reference is made to information on file in connection with temporary subsidy agreement of American Diamond Lines, Inc., in 1937. 8. There is no voting agreement, voting trust, or other arrangement whereby the voting rights in any shares of the Applicant are owned, controlled, or exercised, or whereby the control of the Applicant is in any way held or exercised by any person not the holder of legal title to such shares. 9. There are no persons having any pecuniary interest, direct or indirect, in this application or in the ownership or use of the vessels, routes, or line covered hereby other than as shown under 5 above. B. AS TO THE APPLICANT; ITS BUSINESS ACTIVITIES AND RELATIONSHIP 10. The Black Diamond organization originated with the incorporation of Black Diamond Steamship Corp. under the laws of Delaware in October 1919. It was the operating company for ships of the Great Northwestern Shipping Corporation, one of the pioneer purchasers of ships from the U. S. S. B. and was agent for Union Suisse de Transports Maritime. In 1920 it started operating ships for the U. S. S. B. between U. S. North Atlantic ports and Holland and Belgium. It continued as Managing Operator for U. S. S. B. on that route until in August 1931 when the American Diamond Lines Inc. was formed and purchased ten vessels from the U. S. S. B. Black Diamond Steamship Corp. then became a wholly owned subsidiary of American Diamond Lines, Inc., and operated its vessels on aforementioned route under F. O. M. Contract 53 until said mail contract was canceled in 1937. A temporary operating differential subsidy was granted American Diamond Lines, Inc. for second half of 1937. In October 1937 Black Diamond Lines, Inc., was formed and later acquired control of American Diamond Lines, Inc. In February 1938 American Diamond Lines, Inc., was liquidated and subsequently dissolved and in April 1938 Black Diamond Steamship Corp. (Delaware) was dissolved and liquidated. Black Diamond Lines, Inc., continued the operation of the eight vessels acquired from American Diamond Lines, Inc., on the above-mentioned route until certain areas including ports of Belgium and Holland were closed to American-flag vessels by proclamation of the President in November 1939. The vessels owned by Black Diamond Lines, Inc., were thereafter chartered to other steamship companies. Foreign-flag vessels were then chartered by Black Diamond Lines, Inc., to carry on its business until Holland and Belgium were invaded in May 1940. In September 1940 a plan of liquidation and dissolution was adopted by Black Diamond Lines, Inc., and completed in September 1943. A partnership was formed by the executives of the Black Diamond Lines, Inc., in September 1940 doing business under the name Black Diamond Steamship Company. The eight vessels owned by Black Diamond Lines, Inc., were acquired by the partnership which continued to charter them out to another steamship company until the vessels were eventually sold. The last vessel was sold in October 1941. In August 1942, at the suggestion of the War Shipping Administration, the partnership formed a wholly owned subsidiary under the laws of Maryland, under the name of Black Diamond Steamship Corp., which is the Applicant here. From August 1942 to the present time, Applicant has been wholly engaged as general agent of the War Shipping Administration. 11. The principal property of the Applicant other than vessels consists of the assets shown on the Balance Sheet attached hereto and referred to in 39 (a). 12. As has been explained under 10 above, at present, Applicant is wholly engaged in the operation of vessels as general agent of the War Shipping Administration. However, the service, route, or line on which Black Diamond vessels were operated before the war covered the U. S. North Atlantic ports between Portland, Maine, and Hampton Roads, Virginia, both inclusive, with occasional calls at Canadian Atlantic ports as cargo warranted, and the ports of Belgium and Holland. The principal ports of call are New York, NY, Boston, Mass., Philadelphia, Pa., Baltimore, Md., Norfolk and Newport News, Va., Antwerp, Belgium, and Rotterdam, Holland. At New York, the Black Diamond terminal was Pier K, Weehawken, leased from the New York Central Railroad. This pier is 996 feet long on one side and 911 feet long on the other side and the berthing space available is the full length on each side as stated above. The depth of water at mean low water is 30 to 35 feet. The one-story shed on this pier is 980 feet long on one side and 895 feet long on the other side. The full width inside the shed is 183 feet. There are two railroad tracks down the center of the pier depressed below the pier floor. The total floor area excluding the section occupied by the railroad tracks is 149,302 square feet. There is also an open area at the end of the pier 51 feet by 85 feet. Calls were made at other terminals from time to time to meet traffic requirements. At Boston, Black Diamond's regular terminal was at the Army Base Pier in South Boston, a description of which must be in the Commission's files. Calls were also made at other terminals in Boston from time to time as required by traffic. At Philadelphia, Black Diamond's regular terminal was Pier A, Port Richmond, which is owned and operated by the Reading Railroad. This pier is 678 feet long on one side and 681 feet long on the other side and the berthing space available is the full length on each side as stated. The depth of water at mean low water is 30 to 35 feet. The one-story shed on this pier is 670 feet long and 158 feet wide, the total floor area being 105,860 square feet. There are two railroad tracks down center of pier, one track along south side apron. When cargo offered, pier 98 South was also used. This terminal is owned by United States and operated by Tidewater Terminal Co. and a description of same must be in the Commission's files. Calls were also made from time to time as required by traffic at other piers in Philadelphia and at Chester, Pa. At Baltimore, Black Diamond's regular terminal was at Pier 6, Locust Point, owned by Baltimore and Ohio Railroad. This pier is 870 feet long on one side and 958 feet long on the other side, berthing space available being the full length of each side. The depth of water at mean low water is 35 feet. The two-story shed on this pier is 940 feet long and 136 feet wide with floor area of 256,244 square feet. There are two depressed tracks running the length of the shed and a single track along the aprons of the pier. Calls were also made at Western Maryland R. R. piers as cargo warranted. At Norfolk, Black Diamond's regular terminal was at the Army Base, a description of which must be in the Commission's files. Calls were also made at the C. & O. R. R. pier at Newport News and other piers in Hampton Roads as required by traffic. At Antwerp, Black Diamond's regular terminals were quays 144 and 146 in the Basin and Rhine quay 27/28A on the river Schelde which were rented from the City of Antwerp and on which Black Diamond has a priority for post war. The sheds on quays 144 and 146 provided enclosed space of 95,456 square feet and open space of 5,429 square feet. Berthing space alongside quays 144 and 146 was 1,000 feet. There were three railroad tracks along the quay and electric cranes with a lifting capacity of three tons and a reach of 40 feet. Quay 142 and part of that shed was also used from time to time as traffic warranted. The shed space on quay 27/28A was 75,744 square feet and the berthing space 1,000 feet. This quay was equipped with a railroad track along the quay and another down the middle of the shed also with hydraulic cranes of 12-ton capacity. At Rotterdam, Black Diamond's regular terminal was at Lekhaven with berthing space of 771 feet. The enclosed shed space was 48,438 square feet and open space was 52,744 square feet. This quay was equipped with electric cranes of 3-ton and 4-ton capacity and with a reach of from 52 feet to 134 feet. There were two railroad tracks along the quay. Adjacent quay was also used for berthing vessels and shed for cargo storage when required. Calls were also made at other terminals as required by traffic. Every indication at present supports the expectation of the Applicant to use the above-described terminals in its postwar operations. Black Diamond's prewar schedule provided for 72 round voyages per annum serving New York with six direct sailings per month; Boston, Philadelphia, Baltimore, and Norfolk, each with two indirect sailings per month via New York; Antwerp and Rotterdam each with three direct and three indirect sailings per month, the indirect sailings from Antwerp being via Rotterdam and the indirect sailings from Rotterdam being via Antwerp. The vessels owned and operated by Black Diamond in this service before the war were the Black Condor, Black Eagle, Black Falcon, Black Gull, Black Hawk, Black Heron, Black Osprey, and Black Tern. 13. As indicated in 10 and 12 above, at present Applicant is wholly engaged as general agent of the War Shipping Administration. However, before the war the principal commodities carried by Black Diamond east-bound were automobiles, automobile parts, apples, copper, dried fruits, flour, grain, lubricating oil, lumber, machinery, oilcake, provisions, steel, tires and tubes, tobacco and miscellaneous package goods. The principal commodities carried west-bound were carpets, cement, chemicals, cocoa beans, cotton linters, fertilizers, flower bulbs, furniture, glass, glue stock, herring, malt, ores, rice, seeds, steel, vegetable oils, waste and rags, and miscellaneous freight. The very large tank capacity in the Vitory-type vessels may be modified and used advantageously in the transportation of Diesel oils, heavy fuel oils, and lubricating oils east-bound, also palm oils and vegetable oils west-bound. Installation of approximately 30,000 cubie feet of refrigerator cargo space would attract perishable cargoes not available to Black Diamond before the war. It is proposed to provide accommodations for the carriage of 12 passengers on each vessel. Antwerp and Rotterdam are not passenger ports and although one of our foreign-flag competitors operated passenger vessels, we know the greater number of their passengers were landed at channel ports causing delay in delivering cargo at terminal ports. 14. Applicant does not propose to establish any new service, route, or line. 15. It is impossible at present to state definitely the minimum and maximum number of sailings that will be required to properly service the berth postwar. This will, of course, depend on postwar economic conditions in both Europe and the United States, the quantity and type of material to be transported and the competition to be encountered in the trade. Before the war Black Diamond provided satisfactory service with about 72 round voyages per annum (see answer to 12 above) and this application is based on resumption of that service. Attached hereto are statistics showing the cargo carried east- and west-bound. during 1936, 1937, 1938, and 1939. |