Mr. MORSE. I personally have no recollection. The CHAIRMAN. Mr. Tibbott, do you recall whether any action was taken on this request of September 10, 1946? That is your letter to the Pacific coast conferences asking whether there was an unfiled agreement or understanding between the member lines of the four conferences. Mr. TIBBOTT. I will have to check the files. This was the simultaneous changing of certain handling charges on the Pacific coast there. I believe there were responses. The CHAIRMAN. You will check that for us. Mr. MORSE. Yes, sir. (Subsequently, the Board supplied the information, which appears at pp. 905, 952-955.) The CHAIRMAN. Now, in December 1956, were the Lykes Bros., Farrell Lines, Robin and Safmarine, all parties to an approved section 15 agreement permitting all four lines to agree upon uniform rates to south and east Africa trade? Mr. TIBBOTT. There is such an agreement. I do not recall the date. The CHAIRMAN. According to documents the subcommittee was furnished from the files of Lykes Bros., and Farrell Lines, it appears that simultaneous and identical public announcements were issued by all four lines concerning rate policies in south and east Africa trade. I refer to Lykes Bros., documents YK-814 and 815, dated December 21, 1956, which are offered for the record. (The documents referred to are as follows:) COPY LYKES BROS. STEAMSHIP CO., INC. STEAMSHIP AGENTS Place Copy of Telegram Received NO TO NY RCC JPOK YR 63 WE WL DEFLY ANNOUNCE TO PRESS ON DEC 27 TO APPEAR WHAT IS MCGUIRE GOING TO DO ON PREVITES TRINIDAD ASPHALT ETC. ACC 12-21-56 CC HWP ALP HAC, CONFERENCE GBS, DURBAN AJT, LONDON Dear Al: Please have someone contact Messrs. Patterson & ACC Pedrick so that the necessary action can be taken, as outlined. Note for copies: All concerned will please handle as outlined in New ACC COPY WESTERN UNION TELEGRAM DEC 21 1956 RE ANNOUNCEMNT INCREASE AFRICA RATES. JIM FARRELL SENT US 63 ACC WL ISSUE MORE OR LESS IDENTICAL STATEMNTS ON THE SAME DATE THRU THE SAME MEANS. PENDG APPEARNCE ANNOUNCEMNTS FARRELL THINKS IT OF UTMOST IMPORTANCE THAT THIS MATTER B KEPT IN STRICTEST CONFID. RELEASE READS: "RATES IN THE SOUTH AND EAST AFRICA TRADE THE LINES MEMBERS OF THE CONFS CXX GOVERNG RATES ON CARGOES TO AND FRM SOUTH AND EAST AFRICAN PORTS DIRECT THE ATTN OF ALL SHPRS AND CONSIGNEES TO THE FACT THAT ADVANCE BKGS MAY 3 MADE AT CURRENT RATES ONLY FOR A PERIOD APPROXIMATG TWO MONTHS IN ADVANCE. SHPRS AND CONSIGNEES ARE FURTHR INFORMED THAT A REVIEW OF THE CURRENT RATES STRUCTURES IN BOTH DIRECTNS IS PRESLY UNDR CONSIDERATN IN VIEW OF THE INCREASED OPERATG COSTS TO WCH THE MEMBER LINES HV BN AND ARE BEING SUBJECTED. ACCDGLY, ANNOUNCEMNT IS HEREBY MADE THAT IN BOTH THE OUTWARD AND HOMEWARD TRADES NO CARGO WIL BE BKD AT THE RATES PRESLY PROVIDED FOR IN THE CONF TARIFFS FOR DELY TO THE OCEAN CARRIERS ON DOCK OR ALONGSIDE ON LIGHTER BEYOND FEB 28 1956. ALL MERCHANTS ARE ROSTD TO BEAR THE FOREGOING IN MIND AS RESPECTS FUTURE SALES OR PURCHASES." RCC/JPOK Mr. SINGMAN. Mr. Chairman, may I at this point clarify one point for the record? My attention was distracted a moment ago when Mr. Tibbott said that all of those lines were parties to an agreement. It is my recollection, according to my understanding of the facts, that in 1956 neither Safmarine nor Lykes were parties to a formal agreement permitting the setting of rates in the south and east African trade. At that time the Robin Line and Farrell Lines may have had such an agreement. And I think the Robin Line and Lykes had a similar agreement. But Safmarine, whose agent was States Marine, was at that time not party to any such approved agreement, according to the records we have been able to determine or find in the Board. Is that your recollection, Mr. Ranck? Mr. RANCK. That is my recollection. The CHAIRMAN. Now, from that document which you are reading, was that not notice to the world that these lines were engaging in uniform rate policies? These were four separate, public, identical announcements, issued by these four separate lines, indicating identical rate changes. Now, I ask, wasn't that a notice that these lines were probably engaging in concerted rate changes? Mr. TIBBOTT. I would think so. The CHAIRMAN. Should not the Board have immediately taken action in this and similar cases involving simultaneous and identical rate action, or did you take action? Mr. TIBBOTT. I do not think we had knowledge of it. The CHAIRMAN. You what? Mr. TIBBOTT. I do not think we had knowledge of it, to the best of my recollection. The CHAIRMAN. You had knowledge but you didn't do anything about it? Mr. TIBBOTT. I don't think we even had knowledge of it, not to the best of my recollection. The CHAIRMAN. You had no knowledge of it. Mr. TIBBOTT. I would have to check our records, but I do not believe we had knowledge of it. Mr. HOLTZMAN. When there is a change of rates, as contained in this public announcement, don't they have to file the new tariffs, the outward tariffs, with you, Mr. Tibbott? Mr. TIBBOTT. They file them within a period of 30 days after they become effective, and they are filed individually. Mr. HOLTZMAN. Do you recall whether they did file such tariffs with you? Mr. TIBBOTT. I would not recall. I presume they did, in accordance with their requirements. They have to file their outbound tariffs within a period of 30 days. But with roughly 2,000 tariff filings coming in in a month, it is virtually impossible, without some lead, to check one against the other. Mr. HOLTZMAN. Do you read the trade press every day yourself, Mr. Tibbott? Mr. TIBBOTT. No. What trade press? Mr. HOLTZMAN. Have you assigned anyone in your office to read the trade press every day? Mr. TIBBOTT. We get the Journal of Commerce. Mr. HOLTZMAN. Did anyone in your office read that change of tariff and call it to your attention, if you remember? Mr. TIBBOTT. No, not to the best of my knowledge. Mr. HOLTZMAN. You couldn't even say now whether it was published in the trade press, could you? Mr. TIBBOTT. I could not. Mr. HOLTZMAN. This particular instance we are talking about? Mr. DONOHUE. Well, Mr. Chairman, may I ask this question. Mr. MORSE. Any time. Mr. DONOHUE. Insofar as the domestic trade is concerned, can they? Mr. TIBBOTT. No. They may not be changed without prior filing with the Board in the domestic offshore trade. Mr. DONOHUE. And those rates must be approved by your Board? Mr. TIBBOTT. No. Mr. MORSE. In the domestic offshore trade, yes. Mr. TIBBOTT. No, I am sorry. They are not approved, but they may be suspended for investigation. They go into effect-they are filed 30 days in advance, and they go into effect unless suspended by the Board. The Board may suspend those rates. Mr. DONOHUE. In other words, insofar as foreign trade is concerned, you do not have any control over rates at all? Mr. MORSE. Over the rate level, no, sir. We have very limited control-let's put it that way. Mr. DONOHUE. And to what extent do you have control? Mr. MORSE. Only if we can find that the rates are discriminatory or prejudicial to the commerce of the United States. Mr. DONOHUE. Well, to that degree, and to that extent, do you not study them for the purpose of making a decision or a determination as to whether or not they are discriminatory? Mr. MORSE. To the best of our ability we do. And we also rely in large part on the shippers and importers who feel they may be discriminated against. They are the first ones to complain to us, if they feel there is a discrimination. Mr. TIBBOTT. I might add that from examinations, we have probably taken up twice as many cases with the lines as have been brought to our attention through informal complaints or protests or communications from outside sources. Mr. DONOHUE. Well, tell me this. In the event that you do find that they are discriminatory, what action does the Board take? Mr. TIBBOTT. This is on an informal survey-we make a survey and we find that such and such a provision seems to be discriminatory. We immediately take it up with the line and endeavor to get it corrected by voluntary means there. If that isn't successful-that is hat we are seeking. If it was not successful, and they can show us that it was not discriminatory, that is satisfactory also. On the otherhand, if they will not correct it, and it appears still to us that in spite of their explanations and clarifications that it is discriminatory, we recommend that the Board undertake formal action. Mr. DONOHUE. And what formal action would that be? |