United States v. Alaska S.S. Co.

110 F. Supp. 104, 1952 U.S. Dist. LEXIS 2064, 1952 Trade Cas. (CCH) 67,354
CourtDistrict Court, W.D. Washington
DecidedSeptember 29, 1952
DocketCiv. 2682; Crim. 48201
StatusPublished
Cited by7 cases

This text of 110 F. Supp. 104 (United States v. Alaska S.S. Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Alaska S.S. Co., 110 F. Supp. 104, 1952 U.S. Dist. LEXIS 2064, 1952 Trade Cas. (CCH) 67,354 (W.D. Wash. 1952).

Opinion

LEMMON, District Judge.

Illustrating the growing importance of administrative law, these cases require a study of the role played by what is now known as the Federal Maritime Board, 46 U.S.C.A. § lili, note, under the Shipping Act of 1916, as amended, 46 U.S.C.A. § 801 et seq., vis-á-vis civil and criminal actions brought by the United States under the Antitrust Acts, 15 U.S.C.A. § 1 et seq. This in turn calls for a survey of the boundaries of the Board’s “primary jurisdiction”.

The defendants in the criminal and in the civil action are identical. They consist of the corporation and five of its officers. The corporate defendant was organized under the laws of the State of Washington and has its principal place of business at Seattle, Washington, where the individual defendants all reside.

1. The Indictment

On November 2, 1950, the United States District Court for the District of Alaska, Third Division, entered an order granting a motion of the defendants; over the plaintiff’s objection, for, a change of venue in the criminal case under Rule 21(b), Federal Rules of Criminal Procedure, 18 U.S. C.A., from the Alaska Court to this court.

After setting forth considerable material relating to definitions, the defendants, and the nature of Alaska .trade and commerce — material not essential to an understanding of the law points discussed herein —the indictment contains the following pertinent allegations:

■Beginning about 1944, and continuing thereafter until the return of the indict *105 ment, the defendants and others have engaged in a wrongful' and unlawful combination and conspiracy to exclude, prevent, and restrain the actual and potential competition of water and motor truck carriers with the defendants in the transportation of freight and passengers to, from, and between points, in the Territory of Alaska.

This combination has been and is now in unreasonable restraint of the said trade and commerce, in violation of 15 U.S.C.A. section 3, commonly known as the Sherman Act.

The conspiracy has consisted of the defendants’ agreement:

(a) To acquire a virtual monopoly of ■the transportation of persons and com■modities by water for hire, in the Alaska trade by merging the operations of the Northland Transportation .Company and the Alaska Steamship Company, the corporate defendant which is hereinafter referred to as Alaska Steam; by hindering, obstructing, and preventing others’ from chartering vessels for the purpose of entering the Alaska trade in competition with them; and by attempting to acquire control of, eliminate competition with, and merge the defendants’ operations with those of the Alaska Transportation Company, their largest remaining competitor;

(b) To maintain and perpetuate their virtual monopoly of transporting .passengers and freight by water in the Alaska trade, and to prevent and eliminate the actual and potential competition of other water carriers by entering into agreements with shippers by the terms of which the latter are required to deal exclusively with them and to refrain from doing business with competing water carriers; and by utilizing their position as' the only carrier serving the whole of Alaska and offering a full line' of shipping service, to coerce shippers to ship exclusively with them.

This coercion was to be carried out as follows:

(1) By threatening to limit,, delay, or withdraw the service of carrying supplies north to canneries and fisheries and other industrial users in Alaska unless such shippers patronize them exclusively in the transportation of fish .and other products south from Alaska;

(2) By threatening to limit, delay, or 'withdraw the service of transporting perishables under refrigeration unless' shipipers desiring or' requiring this service patronize them exclusively in the transportation of non-perishable 'freight;

'(3) By threatéiiing to limit, delay or withdraw the service of transporting passengers' unless shippers desiring such service patronize them exclusively' in freight transportation;

(4) By threatening to limit, delay, or withdraw the service of transporting dry cargo unless shippers requiring such service patronize them exclusively in the transportation of fish oil or other bulk liquids;

(5) By threatening, to limit, delay, or withdraw service to shippers patronizing any other water carrier;

(6) By threatening to limit, delay, or withdraw service to shippers, to, from, or between Alaska points, which only.the defendants serve, if shippers requiring or desiring such service patronize any other water carrier serving any other Alaska points;

(7) By threatening to increase .freight rates on particular commodities unless shippers of such commodities deal exclusively with them and refrain from, dealing with any other water carrier-;

(8) By offering to reduce and reducing freight rates on particular commodities if shippers deal with them and refrain from dealing with other water carriers;

(9) By inducing and compelling shippers to breach existing contracts, and agreements to ship freight with' other water carriers by the several means alleged in sub-paragraphs (1) through (8) of this sub-paragraph; ' " "

(10) By causing field representatives and agents of the defendants to determine the identity of shippers w)io ..patronize other water carriers, by maintaining a systematic surveillance of docks and .terminals; by obtaining access to competí *106 tors’ freight manifests, and by other means; and by thereafter-causing the field representatives and agents to call upon shippers that have patronized another water carrier, and inform the shippers of the defendants’ awareness that the shippers have patronized another water carrier, demand an explanation of the shipper’s conduct, threaten him in the manner alleged in sub-paragraphs, (1) through (7) of this sub-paragraph if the shipper again patronized another carrier, and by other means intimidate, harass, and annoy the shipper.

Continuing its recital of the means whereby the defendants planned to “maintain and perpetuate their virtual monopoly”, the indictment alleges that it was to be done also by diverting or scheduling their “ships so as to split or reduce cargo available to other water carriers”, and by “denying other water carriers reasonable access to dock and terminal facilities at Alaskan ports”.

Such denial of access, in turn, was to be accomplished by “diverting or scheduling defendants’ ships to arrive before” those of their competitors and by “unreasonably delaying the departure of defendants’ ships” so as to block the port facilities, and by threatening to delay or misroute freight destined to a particular Alaska port unless the ships of other carriers were required to move from terminal facilities, thus granting the defendants’ vessels immediate access thereto.

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Cite This Page — Counsel Stack

Bluebook (online)
110 F. Supp. 104, 1952 U.S. Dist. LEXIS 2064, 1952 Trade Cas. (CCH) 67,354, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-alaska-ss-co-wawd-1952.