NCJ Number
158540
Date Published
1977
Length
176 pages
Annotation
This hearing provides testimony on the problem of and response to the rebating malpractices that exist in the U.S. ocean trades.
Abstract
In his opening statement, the chairman of the Subcommittee advises that such malpractices are prohibited by the Shipping Act of 1916, as amended. Rebates to secure business take a number of forms, including direct payments of cash or check, absorption of inland charges, or short-weight or short-measure declarations. The consequence of these rebates is to disrupt the flow of ocean commerce at reasonable costs, thereby threatening consumers at home and export customers abroad. The hearings are intended to receive testimony on the nature and extent of the problem. At the conclusion of the hearings the Subcommittee will consider what action, if any, should be recommended on the basis of the hearing record and its own determinations. The chairman of the Federal Maritime Commission notes the illegality of rebating and points out that absent an effective mechanism to stabilize the liner cargo/tonnage ratio, a climate conducive to rebating often prevails in the ocean trades of the United States. He advocates a uniform, organized effort by the various Federal agencies that have statutory responsibilities that are affected by illegal rebating in the U.S. liner trades. Testimony is also presented by representatives of various maritime businesses.