PRINTED IN U.S.A. DUPLICATE Mr. J. Richards Strachan Shipping Company, Dear Sir: PUBLIC DISTRIBUTION OF OCEAN TARIFFS This acknowledges your letter of July 1, 1957 attaching a photostatic copy of letter received from the South Atlantic Steamship Conference, relative to a communication addressed to them by the Chairman of the Federal Maritime Board, relative to the distribution of tariffs to shippers, etc. We have always been against the distribution of tariffs for many seasons, since it gives the shipper or forwarder a chance to compare rates on like commodities and it would also add a considerable burden to the limited Conference staffs, to say nothing of the expense involved. In the past, when the subject has been discussed in the Conference, the Lines were unanimous in their agreement that the tariff should not be publically distributed. However, the North Atlantic Conference have received similar communicatdane from F.M. B. and the matter is docketed for discussion at the next Conference Meeting. When a decision will be reached, we cannot say at this time so we suggest that you request the South Atlantic Conference to take no further action until after the matter has been thoroughly explored by the Conferences in New York. In the meantime, we would suggest that you have Mr. Middleton acknowledge receipt of Chairman Morse's letters advising that same have been promulgated to the Member Lines and as soon as advices have been received from the Lines a further communication will be sent to him. TO THE LINES: NORTH ATLANTIC BALTIC FREIGHT CONFERENCE June 24, 1957. TARIFFS, DISTRIBUTION OF FRIC OR UPON SUBGCT IPTION BASIS 65297 attached is copy each of two letters both dated June 21, 1957 (received today) addressed by Mr. Clarence G. Morse, Chairman, Federal laritime Board, Washington 25, D. C. TO ALL FREIGHT CONFERENCES WHOSE AGREEMENTS HAVE BEEN TO ALL COMMON CARRIERS BY WATER ENGAGED IN THE FOREIGN either free or urging adoption of some system for the distribution of tariffs I have acknowledged receipt of Chairman Morse's letters advising that same have been promulgated to our ember Lines and as soon as we have your advices we will not fail to address a further communication to him. C. R. Andrews CILA IRIAN ATTACHMENT (2) 4009 FEDERAL MARITIC BOND WASHINGTON 25. D.C. Date: June 21, 1957. To All Freight Conferences Whose Agreements Have Been approved 5297 Attached is a letter which I have sent to all common carriers by water in the foreign trade of the United States urging that they adopt some system for the distribution of their tariffs - either free or upon a subscription basis. Most of the carriers are members of one or more steamship conferences which have had their agreements approved by this Board or its predecessors - permission to take group action in the making of rates and exemption from the anti-trust laws are two privileges which flow to carriers from the Board's approval of their agreements. This places a special duty upon conference carriers to consider the needs and problems of the public. The Board therefore requests that your Conference give particular consideration to the suggestion contained in the attached letter and that your conference adopt a system for the distribution to shippers and potential users of the services of your conference members of your freight tariffs, either free or upon payment of a reasonable subscription fee. Your early advice as to what your conference proposes to do with respect to this will be appreciated. Attachment. Sincerely yours, (Sgd.) Clarence G. Morse Chairman Shippers, Trade Organizations and others have frequently expressed to this Board the value which they realize from rates which are stable and uniformly applied but in doing so many have stated a need for more complete rate information - a belief that the conduct of their business would be facilitated by a great familiarity with freight rates and tariff structures and the opportunity to anticipato shipping costs with a high degree of certainty. To bring this about they have asked for some system for the public distribution of tariffs by common carriers by water in the foreign trade. In this connection the Board has noted that a number of freight conferences in the foreign trado and some individual carriers have voluntarily established systems whereby interested persons may obtain copics of their freight tariffs, either free or upon payment of a reasonable subscription fee. This is a step forward and one which represents a realization of the partnership which should exist between ship and shipper for the conduct of trade. Shippers are entitled to know what their freight charges will be; to know what they are being correctly charged; and to know what their competitors are paying. It is the Board's view that the best way of accomplishing this would be for carriers to take voluntary action to make their tariffs their price lists available to the public, free or at a reasonable subscription price. The Board therefore urges that all common carriers by water, engaged in the foreign trade of the United States, adopt some system for the distribution of their freight tariffs to the shipping public. Advice as to what steps your own company will take along these lines in requested, and you are assured that the Board will offer you all the assistance within its power to further such a program. Sincerely yours, (Sgc.) Clarence G. ¡borse Chairman The CHAIRMAN. Mr. Harkins? Mr. HARKINS. Mr. Chairman-Mr. Morse, with respect to membership in steamship conferences, the Board, for a long time, has required that the conference agreement, contain provisions that make it relatively easy for new members to enter; isn't that right? Mr. MORSE. Yes, sir. Mr. HARKINS. In fact, the Board, as early as 1926, required as a condition of its approval, that the Trans-Pacific Freight Bureau Conference admit new members if they agreed to comply with the terms of the conference agreement; isn't that right? Are you familiar with that agreement? You will notice that the staff recommended in 1926 that the Board withhold its approval. Mr. MORSE. Yes; I note that. I have not seen this document, this paricular document. Mr. HARKINS. Yes. That document was supplied to the committee by the Federal Maritime Board. Mr. Chairman, I offer for the record this memo dated July 23, 1926, from Mr. C. O. Arthur, Director, Bureau of Regulations. The CHAIRMAN. It will be received for the record. (The memo referred to is as follows:) |