THE UNDERSIGNED HAVE READ MESORS. STATES STEAMSHIP COMPANY'S AGENT'S MESSRS. DOOWELL) LETTER OF APRIL 29TH, 1954, TO THE ASSOCIATED STEAMSHIP LINES, REPLYING TO THE ASSOCIATION'S LETTER OF APRIL 24TH IN QUIRING INTO THE CIRCUMSTANCES AND CONDITIONS UNDER WHICH A CONTRACT WAS AWARDED STATES STEAMSHIP COMPANY BY LEPANTO CONSOLIDATED MINING COMPANY TO LIFT ABOUT 57,000 TONS OF COPPER CONCENTRATES FROM PORO, SAN FERNANDO, PHILIPPINES TO TACOMA, WASHINGTON, STARTING NID-May, 1954.

LETTER,

FROM THE INFORMATION given in Mesons. Doovell's LetteR, IT IS

CLEAR THAT:

1. SONE TIME BEFORE March 23, 1994, Mesers. DecvELL, PHILIPPINE
AGENTS FOR STATES STEAMSHIP COMPANY, MEMBERS OF THE ASSOCIA
TED STEAMSHIP Lines, made A BID TO A SHIPPER TO MOVE 57,000
TONS OF COPPER CONCENTRATES FROM PORO, SAN FERNANDO, PHILIP
PINES TO TACOMA, WASHINGTON, AT A RATE OF $5.50 r.1.0. FOR
THE FIRST THREE SHIPMENTS IP NORTHLY SHIPMENTS ARE SELECTED
BY SHIPPERS, OR FOR THE FIRST TWO SHIPMENTS IF BI-MONTHLY
SHIPMENTS ARE SELECTED BY THE SHIPPERS; AND $5.00 PER TON,
r.1.0. FOR THE BALANCE OF THE 57,000 TONS OF ONE.

2. Messrs. Dodwell's letteR DOES NOT NENTION THAT THIS BID ALSO INCLUDED THE TERMS OF DEMURRAGe at $1790.00 PER DAY OR PRORATA, AND DISPATCH AT HALF THAT FIGURE.

THE UNDERSIONED CONSIDER THIS A VÍGLÁTION OF Agreement No. 5600° AND GENERAL FREIGHT TARIFF No. 5, WHICH STIPULATE RATE OF $5.50, 7.1.0. NO DEMURRAGE, NO DISPATCH.

SUBSEQUENT RESIGNATION FROM THE ASSOCIATED STEAMSHIP Lines does NOT ALTER THE FACT THAT BID WAS MADE TO A SHIPPER WHILE A MEMBER, IN COMPETITION TO OTHER MEMBERS BIDDING AT CONFERENCE RATES AND CONDITIONS.

(CIRCULAR NO. 250/1954)

OTHER FACTORS AS TO THE REASONS FOR THE TERMS OF THE BID, REA SONS CARGO WAS DESIRED, ABSENCE OF A SIGNED CONTRACT, DESIRABILITY OF A CONFERENCE MEMBER PARTICIPATING IN THIS PARTICULAR ORE MOVEMENT, OR WHETHER OR NOT OTHER CONFERENCE MEMBERS' BID MIGHT HAVE BEEN ACCEPTED, HAS NO BEARING ON THE FACT THAT AN OFFER WAS MADE AND ACCEPTED AT TERMS AND

CONDITIONS OTHER THAN THOSE PROVIDED FOR UNDER AGREEMENT 5600 AND GENERAL FREIGHT TARIFF No. 5.

AS IT IS CONSIDERED THAT THE ACTION TAKEN IN BOOKING THIS CARGO MAY CREATE A PRECEDENT THAT RENDERS OUR AGREEMENT VALUELESS, IT IS REQUESTED THAT ACTION BE TAKEN AS PROVIDED FOR IN AGREEMENT 5000 AND THE RULES AND

(CIRCULAR NO. 250/1954)

Dodwell & Company, Ltd.

Manila

Gentlemen:

May 12, 1954

STATES LINE

COPPER CONCENTRATES

P. I. TO PACIFIC WEST COAST

Reference is made to attached letter proferring charges against captioned Line for violation of Conference Agreement 5600.

Special reference is made to amendment of Agreement No. 5600-14 dated 1 November 1949 and to Article 17(▲) and (B).

A special meeting will be called for a hearing of the case and the undersigned proposes to hold such a meeting on 21 May at 9:30 A.M. in the office of the Associated Steamship Lines, dorner of Anda and Sta. Lucia Streets, Intramuros, Kanila.

Should the date be inconvenient, please inform the writer immediately on receipt of this letter of any suggestion you may wish to make. This, in order that notices can be sent to the kembers in good time.

Yours very truly

ASSOCIATED STEAMSHIP LINES

Excl.

F. H. SPENGLER

Chairman