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comparable to Mississippi's. The vessels call at the South American ports of Rio de Janeiro, Santos, Montevideo, and Buenos Aires. The first of these vessels made its maiden voyage in June 1950. The other two were put in service in the latter part of 1950 and in 1951, respectively. Their passenger carryings to October 15, 1951, have been as follows: 19 sailings outbound, 999 passengers; 19 sailings inbound, 686 pasengers. Their average percent of occupancy was 43 percent outbound and 28.5 percent inbound. This shows a low degree of utilization for the vessels in their early voyages, but it is too soon to reach any conclusion as to the ultimate popularity of the service. Mormac's passenger carryings on Trade Route 1 were as follows:

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The 1951 passenger statistics cover the first 6 months for Mississippi and the first 912 months for ASL. In those respective periods, Mississippi carried 683 passengers outbound and 609 inbound, and ASL carried 742 outbound and 580 inbound. In the following table the 1951 period is equalized in the proportion 912 months to 6 months. Thus, the table compares Mississippi's combination vessel passenger carryings on Trade Route No. 20 with ASL's passenger carryings on Trade Route No. 1 for the periods shown.

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If Mormac's total passenger carryings should be included in the above comparisons, ASL's percentages would be approximately 9.6 and 2.5 for 1951 and 1950, respectively.

The vessels of the principal foreign-flag operators between the port

of New York and the East coast of South America fly the flags of Argentina, Brazil, Great Britain, Denmark, Netherlands, Norway, Panama, and Sweden. The volume of their passenger carryings in that trade is shown by the following table:

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1 1947 figures are incomplete but show at least 814 passengers carried during the year.

Consolidating the known foreign-flag carryings for the periods available results in the following:

TABLE 9.-Foreign Flag Sailings, Arrivals, and Passenger Carryings Between New York and United States Gulf and Pacific Coast Ports, and the East Coast of South America

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Comparison of the totals in the foregoing table to Mississippi's carryings shows that the foreign-flag passenger carryings between all United States coasts and the East coast of South America constituted 45.6 percent in the first half of 1951, 30.1 percent in 1950, and 30.8 percent in 1948.

The following table is a comparison of the sources, geographically, of the passenger traffic of Mississippi, Mormac, and ASL, southbound, for the first 6 months of 1951. They are actual as to Mississippi and Mormac, but, in the absence of evidence directly bearing on the geo

graphical origins of ASL's passengers, it is assumed that they would approximate those of Mormac since both services have their main United States terminus at New York. ASL's passengers are allocated to the appropriate States in the same proportion as Mormac's passengers. While the information as to all of the States is of record, only those which provided 1 percent or more of ASL's or Mormac's total southbound passenger traffic are included in the table:

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In the analysis of the effect of the "geographical factor" upon the competitiveness between ASL's service and that of Mississippi, some insight may be derived from a comparison of the sources of traffic shown in the table. The northeastern States of New York, New Jersey, Pennsylvania, Massachusetts, and the District of Columbia together provide 76.6 percent of the ASL and Mormac carriage, or 2,706 passengers; and the same States provide 5.3 percent of Mississippi's carryings, or 34 passengers.

Of the 7,336 passengers carried (southbound) by Mississippi's combination vessels in 85 sailings in the period November 29, 1946-June 30, 1951, 6,292 originated in the United States and included residents from each of the 48 States and the District of Columbia. Many of these passengers, both cruise and one way, came from New York and nearby States. New York furnished 472 of the passengers on Mississippi's combination vessels, including 70 cruise passengers; Pennsylvania 49, including 14 cruise; Massachusetts 83, including 11 cruise; Connecticut 24, including 9 cruise; New Jersey 66, including 16 cruise; Maryland 36, including 6 cruise; Virginia 65, including 7 cruise; and Qhio 301, including 97 cruise. These eight States alone furnished 1,096 passengers.

Significantly, a large number of passengers come from the Pacific coast. California furnished 1,602-more than any other State-and

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the three Pacific coast States, California, Oregon, and Washington, were the source of 1,775.

Another heavy source of passengers was Illinois and the surrounding States, Illinois alone furnishing 859. The distribution was widespread; a similar distribution existed in the origin of passengers carried on Trade Route No. 1 by Mormac.

Cruises. The evidence shows that for the period January 1, 1947, through June 30, 1951, Mississippi's cruise traffic provided 2,415 passengers, as compared with 4,921 southbound and 4,297 northbound one-way passengers, and 4,798 intermediate passengers. Thus, approximately 34 percent of the through passengers were cruise.

The 2,415 round-trip or cruise passengers originated from every State except Delaware, Idaho, New Hampshire, and Vermont. Some were from Canada, Hawaii, Mexico, and Cuba. Large numbers came from the Pacific coast, from the upper Mississippi Valley and Great Lakes area, and from the North Atlantic coast, including, particularly, New York.

The foreign-flag cruise and passenger services which Mississippi claims compete with its service are of two classes: those from United States eastern ports (Boston and New York) and New Orleans to foreign destinations, and those from East coast of South American ports to foreign destinations, principally Europe. There are about 12 foreign-flag lines so operating with about 18 vessels with capacity of from 45 to 1,067 passengers each. During the period under consideration they carried 3,788 passengers inbound and 3,749 outbound. However, this is incomplete as the record does not show the number of passengers carried on several sailings. The fares ranged from $210 to $2,400 (average about $730) and the voyage durations were from 10 to 164 days (average about 41 days).

Of the foreign-flag cruises referred to, one was a world cruise by the Caronia (British). She sailed from New York in January 1950 with 585 passengers, drawn from 38 States.

Of the total passenger carryings of record by the cruise services referred to, a little more than half of the number was carried in and out of New Orleans on the M. V. Stella Polaris of the Bergen Line

1 Aden, Bahia, Balboa, Barbados, Barcelona, Bergen, Bermuda, Bridgetown, Brisa, British Guiana, Buenos Aires, Cadiz, Calleo, Cap Haitien, Cape Town, Cartegina, Casablanca, Castros, Colania, Colon, Copenhagen, Cuidad Trujillo, Curacao, Cristobal, Dunban, Fort de France, Funchal, Gothenberg, Georgetown, Gibraltar, Grenada, Halifax, Havana, Harwick, Kingston, La Guaira, La Havre, Lisbon, Liston, London, Malago, Martinique, Messina, Mombasa, Monte Carlo, Montevideo, Naples, Nassau, Oslo, Palma, Punta Delgada, Port Elizabeth, Port of Spain, Port de Heirro, Punta Arenas, Rio de Janeiro, San Blas, San Juan, Santa Lucia, Santos, Southampton, St. Croix, St. Kitts, St. Pierre, St. Thomas, St. Vincent, Tangiers, Tillsbury, Trinidad, Tripoli, Triston da Cunha, Tunis, Valleta, Valparaiso, Vera Cruz, Willemstad, and Zanzibar.

(Swedish), on 27 voyages over the period of record. The capacity of this vessel is 170 passengers. This is the only cruise vessel of this type calling at New Orleans, the others calling at Boston and New York.

Several of the operators (British, French, Italian, Dutch) issue numerous color folders and otherwise elaborately and extensively advertise their services as being de luxe cruises and tours, showing sailing dates, rates, and fares. Mississippi also widely advertises its cruise services to Brazil, Uraguay, and Argentina on its combination vessels.

Officers of the company and other witnesses, long experienced and thoroughly informed on the travel business, testified that the foreignflag cruises referred to provided competition for Mississippi's combination vessels; that short cruises, with lay-overs, or in combination with other cruises, are sold in competition with Mississippi's cruises; and that cruises are competitive one with another regardless of the port of sailing and regardless of specific destination.

Position of Mississippi's counsel.—They state that the company has continuously and in strict accord within the terms of the contract operated its three combination vessels on Trade Route No. 20; that during the period of record, in all of the categories of freight and passenger traffic described, these vessels have been subject to continuous and keen foreign-flag competition; that such competition has been substantial; and that the evidence adduced in this proceeding sustains the determinations and findings heretofore made by the Maritime Commission and fully warrants an independent determination by the Board supporting and establishing the need and propriety of the operating-differential subsidy provided in the contract.

Position of Board counsel.-They state that Mississippi's combination vessel operation was required to promote the foreign commerce of the United States during the period under consideration; that in the transportation of cargo the operation was necessary to meet substantial direct foreign-flag competition during the period under consideration; but, with respect to the transportation of passengers the operation was not required to meet substantial direct, nor other than direct, foreign-flag competition in either or all of the categories of passenger traffic described.

With respect to the practically parallel competition on Trade Route No. 20, they point out that Mississippi is the only operator of luxury combination vessels thereon. There are, counsel state, obviously such differences between the foreign-flag freighter services and Mississippi's combination vessel service as to tend to create two separate classes of appeal to the traveling public; that considerable differences

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