STATES LINE P.O. Box: 949 THE SECRETARY-MANAGER THE ASSOCIATED STEAMSHIP LINES MANILA. P. I. DEAR SIRS: AS REQUESTED BY THE CHAIRMAN, WE WAITE FURTHER TO JMB V can NOTE: YOURS FAITHFULLY, FOR DODWELL & CO., LTD. Seo/- J. M. BRADLEY REFERENCE IS MADE TO CIRCULAR NO. 162 DATED 24 MARCH, 1954. TO ALL MEMBERS ASSOCIATED STEAMSHIP LINES GENTLEMEN: STATES LINE COPPER CONCENTRATES PHILIPPINES - U.S. WEST COAST VIOLATION OF AGREEMENT 5600 REFERENCE IS MADE TO ATTACHED CORRESPONDENCE. 1. LETTER TO DODWELL & CO., LTD. DATED 24 APRIL, 1954. 2. 3. FROM 29 1954. FROM MEMBERS DATED 6 MAY, 1954, AND WHICH LETTER PREFER CHARGES AGAINST THE STATES LINE. 4. LETTER TO DOOWELL & CO., LTD. DATED 12 MAY, 1954. IN REFERENCE TO DATE MENTIONED IN LETTER TO DOOWELL & Co. AND DATED 12 MAY, 1954, YOUR CHAIRMAN AFTER DISCUSSION WITH DOOWELL & Co. CHANGED THE DATE OF THE MEETING TO: Members have brought to our attention that inasmuch as the States Steamship Co. have contracted to freight Copper Commentrates from the Philippine Islands to Pacific Coast Ports at a rate which is 50% under Conference rates as per General Freight Tariff No. 5, Item 820, this might be said to be in direct violation of Conference Agreement 5600; paragraph (5) which reads: "That: All freight and other charges for or in connection with such transportation shall be charged and collected by the parties hereto strictly in accordance with rates, charges, classifications, rules and/or regulations adopted by the parties and embodied in the tariffs issued by the Associated Steamship Lines. All rates, charges, classifications, rules, and/or regulations and additions thereto and changes therein adopted pursuant to the provisions of this agreement shall be furnished promptly to the Department of Commerce, United States Shipping Board Bureau, Division of Regulation, Washington, D. C., U.S.A." We are advised that other lines were bidding quoting Conference rates and therefore it would seem that States Steamship Co.'s action is also a breach of Article (12) reading: "That: No member line shall make any agreement or contract, verbal or otherwise, with any shipper or shippers of any commodity that on fires from the Philippine Islands, when the conference, as a body, or any Group thereof, is negotiating with a shipper or shippers as to rates and/or terms and conditions of contracts for an ensuing period, except on the basis of conference rate, terms and conditions when agreed upon." Further we refer to note No. 8 in G.P.T. No. 5 reading: "Rate increases of contract commodities agreed upon by the Associated Steamship Lines shall become effective ninety (90) days after date of such agreement. No booking whatsoever may be made at previous rates after date of such agreement, unless for shipment prior to effective date of such increase." Said Members are therefore requesting this office to write you for your explanation as to why charges should not be preferred against the States Steamship Co. BET:gde Yours very truly ASSOCIATED STEAMSHIP LINES B. B. TUNOLD WE ARE IN RECEIPT OF YOUR LETTER OF THE 24TH INST. AND NOTE THAT MEMBERS HAVE REQUESTED AN EXPLANATION OF OUR PRINCIPALS' ACTION AND ASKED WHY CHARGES SHOULD NOT BE PREFERRED AGAINST THEM. MOST MEMBERS WILL BE AWARE THAT STATES STEAMSHIP COMPANY VESSELS, DURING LAST YEAR, CARRIED NO GENERAL CARGO FROM THE PHILIPPINES EASTBOUND. THREE OF PRINCIPALS' SHIPS, THE "CHARLES E. DANT", "OREGON" AND "COLORADO" HAVE NO DEEP TANKS AND PRINCIPALS BECAME INCREASINGLY CONCERNED OVER THE HEAVY WEATHER DAMAGE BEING SUSTAINED BY ALL SHIPS AND PARTICULARLY, THESE THREE CROSSING THE PACIFIC IN BALLAST TRIN, WHICH FINALLY RESULTED IN THE FIRST NAMED HAVING TO BE DRYDOCKED TWICE DURING ONE VOYAGE FOR BOTTON REPAIRS. LIKE EVERYONE ELSE, PRINCIPALS WELL KNEW THAT CHROME ORE AND CONCENTRATES MOVE IN SUBSTANTIAL QUANTITIES FROM MASINLOC AND SAN FERNANDO TO OAKLAND AND TACOMA, RESPECTIVELY, THE FORMER CONTRolled by Lavi̇NO IN NEW YORK AND THE LATTER, UNDER CONTRACT WITH A NON-CONFERENCE CARRIER. ́ THEY ALSO KNEW THE RATES THE NON-CONFERENCE SHIPS WERE OBTAINING FOR FULL CARGOES. 、 PRINCIPALS, THEREFORE, INSTRUCTED US TO PUT IN A DID FOR THE CONCENTRATES AT $5.00 PER TON WITH THE PROVI30 THAT THE FIRST THREE MONTHLY SHIPMENTS WOULD GO AT CONFERENCE RATES UNTIL THEIR NOTICE OF WITHORAVAL FRON THE CONFERENCE SHOULD TAKE EFFECT. IT IS OUR CONSIDERED OPINION THAT THERE IS NO VIOLATION OF CONFERENCE AGREEMENT 9600 WITH THIS PROVIS0 AND, FURTHER MORE, NO CONTRACT HAS BEEN SIGNED YET. BASED ON THE TOTAL TONNAGE, THIS PROVISJON - INCREASED OUR RATË BY 15% PER TON. AS YOU KNOW, PRINCIPALS' WITHDRAWAL FROM THE CONFERENCE WILL TAKE EFFECT ON THE 21ST MAY 1954 AND TWO SHIPMENTS WILL HAVE GONE FORWARD -9000 TONS IN "COLORADO" MARCH AND 8000 TONS IN WASHINGTON" APRIL: THE FIRST WHILE BIDDING WAS STILL IN PROGRESS, BOTH THESE SHIPMENTS WERE AT CONFERENCE RATES. 'AS WE HAVE SAID IN PREVIOUS CORRESPONDENCE, PRINCIPALS HAD TWO REASONS FOR THEIR ACTION - FIRSTLY, TO SECURE CARRO EASTBOUND TO SAVE THEIR SHIPS FROM DAMAGE AND SECONDLY, TO SECURE THIS CARGO WITHOUT DETRIMENT TO CONFERENCE MENDER LINES BY TAKING IT AWAY FROM NON-CONFERENCE OPERATORS. WITHOUT OUR PRINCIPALS' BID. THE BUSINESS WOULD HAVE GONE TO EITHER CHINA MERCHANTS OR TRITON AGAIN 30 ACTUALLY NO CONFERENCE LINE HAS BEEN ADVERSELY AFFECTED IN ANY WAY. (CIRCULAR NO. 250/1954) MEANTIME, WE DRAW REPRESENTATIVES' ATTENTION TO CLAUSE 16 OF THE ARTICLES OF ASSOCIATION (CONTRACT NO. 5600) WHICH READS AS FOLLOWS: "THAT: A MEMBER LINE MAY WITHDRAW FROM THE CONFERENCE "THE CHAIRMAN, IMMEDIATELY ON RECEIPT OF SUCH NOTICE, WE HAVE BEEN AND STILL ARE COMPLYING WITH THE FIRST PARAGRAPH AND THE SECRETARY MANAGER, ON BEHALF OF THE CHAIRMAN, HAS COMPLIED WITH THE SECOND PARAGRAPH. HOWEVER, INASMUCH AS PRINCIPALS WILL REMAIN MEMBERS OF THE PACIFIC WESTBOUND CONFERENCE AND THE JAPAN PHILIPPINES CONFERENCE, WE THINK THE CONFERENCE MEMBERS WOULD BE UNWISE TO ALLOW OUR PRINCIPALS TO WITHDRAW AND WE AGAIN URGE REPRESENTATIVES TO RECOMMEND TO THEIR PRINCIPALS, IF THEY HAVE NOT ALREADY DONE SO, THAT ACTION SHOULD BE TAKEN TO RATIFY THE SITUATION, PARTICULARLY AS IT LOOKS AS IF THE CONFERENCE MINIMUM RATE NIGHT GO DOWN TO $5.00 AFTER JUNE IF THE PRESENT DOWNWARD TREND CONTINUES. PRINCIPALS WERE MOST ANXIOUS TO SECURE THE BUSINESS AS CONFERENCE MEMBERS, AS THE FOLLOWING EXTRACT OF THEIR TELEGRAM OF THE 11TH MARCH WILL SHOW, BUT WE WERE FORCED TO REPLY TO THE EFFECT THAT WE WERE SURE THEY WOULD NOT SUCCEED AT CONFERENCE RATES. ... RECOMMEND APPROACHING ASSL ADVISING THEM WE FEEL THEY SHOULD ASSIST US GETTING TACOMA ORE MOVE- WE TRUST THE POSITION IS NOW CLEAR. ...... WE PREFER TO YOURS FAITHFULLY, FOR DODWELL & CO., LTD. JMB/V COR Sas/- J. M. BRADLEY MANAGER |