Appendix — National Labor Relations Board v. International Longshoremen's Ass'n

Supreme Court brief1980

Ask Donna

What actually matters in this document.

Text

APPENDIX

VOLUME I—(pp. 1-234)

Iu the Supreme Court of the United States

OCTOBER TERM, 1979

No. 79-1082

NATIONAL LABOR RELATIONS BOARD,

Petitioner

—vV.—

INTERNATIONAL LONGSHOREMEN’S ASSOCIATION,

AFL-CIO AND CoUNCIL OF NoRTH ATLANTIC

SHIPPING ASSOCIATIONS, ET AL.

ON WRIT OF CERTIORARI TO THE UNITED STATES COURT

OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT

PETITION FOR CERTIORARI FILED JANUARY 10, 1980

CERTIORARI GRANTED JANUARY 21, 1980

he

“Siicnaneen

Iu the Supreme Court of the United States

OCTOBER TERM, 1979

No. 79-1082

NATIONAL LABOR RELATIONS BOARD,

Petitioner

— a

INTERNATIONAL LONGSHOREMEN’S ASSOCIATION,

AFL-CIO AND COUNCIL OF NoRTH ATLANTIC

SHIPPING ASSOCIATIONS, ET AL.

ON WRIT OF CERTIORARI TO THE UNITED STATES COURT

OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT

INDEX

Page

Chronological List of Relevant Docket Entries in Case Nos.

a i emandntinnes ; 1

Chronological List of Relevant Docket Entries in Case Nos.

PISSED RIE AE ee eC COR 3

Excerpts from Transcript of Proceedings in Case Nos.

8 REESITSER EAS SIRE Sp Sided “a ae 6

Witnesses:

Jack W. Mace

GREETS ESOT NR SCLC OF SRE aE ACLS ON 8

RCSD RAISES Si Se RC AA 17

aR FET OR fe AIRE 27 ea ae 17

EE RE eT SES ay SEN ER nan aE 19

Cletus E. Houff

AE Se SUBIR ce lO TERS eR 22

Ee TSR wi SOS Ce ak ROT Se Ee IS 33

ii INDEX

Page

Excerpts from Transcript of Proceedings in Case Nos.

5-CC-791, et al—Continued

Witnesses :—Continued a

Myles E. Billups

ae eR Nee PP Rela rl 36

Sp aS NISHA SIT ARCS ore Neer DEE eR Pee 39

A Stal ie ee 41

Otis Landis

REA AS RIN Redeem D ON UR! Oa Me CANO 42

Arthur Baker

aa ntainccisltichisareienge eee t aka eo! abate 46

PI cielliiia Sheila Neiiectlapbe ee ek cue i" Ae MR SW) 48

oi LE ERED SEDI AOS Ye SAMA ETT 49

TRIER eC LAT RAEN Se SE RON VETS 50

John Everett

EES RB RESIS RS Ne rte a Nerd eRe 50

ae RRS EES a DME Ne Bathe Ue ae Cae 54

ei. SER A See ER OER MS eC 56

Edward G. Bochert

A AERETIEENL CM SR oe eR i A Te 56

SSCS SSSR RE a SN EE 65

ah CS SEI CORRS a a ne A 65

Robert W. McCleskey

BAS a ES an te cms ZN 67

es EE AED ERG PORES OO ME TENG Tee 72

M. L. Chadwick

ERS SS RT EY aptamer? LaPeer S 72

hs BIER A ARC IR CAR aA SRS ch seg CoO RaRy 74

FASE Saeed gee ne De tae WA ERE CS Ae AA 75

Allie S. McNeil

ATES REET ER TRON SS Meee Gab Law PY ee Ly ban ee 76

ns UT CST A on ae eras AE a ae ee 86

ES ee RE OOP IT TORE eS 87

George L. Maier

FUREY AEP ee Sk ET Ae AR 88

ete MDA NIE ROS. EAE IEEE CT; DN SLES 91

ARTETA TREN ee SOENSIORE et 28 eae ROEN TTA SORE 106

INDEX iii

Page

Excerpts from Transcript of Proceedings in Case Nos.

5-CC-791, et al—Continued

Witnesses :—Continued

Capt. John M. Haynes

aca NE ONT PAD AROR EEE 108

SII ithcheeeinotitnniesnpakdnieteeusenalozaas aera is neem aaa 125

tire sucess Me Ce 126

TY iiSihara séihasinutnuiwedacndaciaciai eae ae 132

I aictiiciacndscsletetventedonaeadaga eens nee ee 133

James J. Dickman

SPINY cxsssscasitiorninmigshidepinaiupiedigsiituase cee aa ee 134

RAID ncn siensssndiolindcschesdvoiendimasliciaseidienncia daa: eae ele 142

Thomas W. Gleason, Sr.

acca EDR II LI SARE RY, 149

NY. ostinssscnssisiehiaGcilicekwneakencdatekaion ce Caen 152

Richard Hughes

SPOR Shi phcoiniesmebacabndidincclicbieaale ks men eae _ 159

A sass ccnp dati enichinhllipnidaepnanasgantd ad at en 161

FONE SB iii ccc ee ee 164

Alvah J. Merritt

hae Ee EL NLR TAS SD OT 168

RAPID sac sscecionesestioaisacsonblstia scseekas tide sata aie 171

PT OUI sis csimcisaroipata bist ig ak ee ines 173

Excerpts from Transcript of Proceedings in Joint Exhibit 1

in Case Nos. 5-CC-791, et al.

Witnesses :

Jack W. Mace

a NT OTRO AR AEF eR 176

dag ERROR ENOL: Tine ee 179

vpitsiciig RMR GET, 181

Cletus E. Houff

cian ETE pe, 182

CE Te NOMA EEE e 188

Edward G. Bochert

sata NE LEI OO) oy 190

al ee NT MON RAS ate Se 199

iv INDEX

Page INDEX Vv

Excerpts from Transcript of Proceedings in Joint Exhibit 1 Page

in Case Nos. 5-CC-79, et al.—Continued ; General Counsel’s Exhibits—Continued

Witnesses :—Continued Ee a eaiecedndiss taedbetalaaitiebn ae hidtkan is sheinae bids Gace 0 Reino aaa eh 344

A. 8S. McNeil ID <cldestelsbepiictt stpdihaindsecargichnilcabiveage Nia Mabeidlcs taeedl epradb uncceiencenee 345

IIIT iid a-s<i.~shesieatacsaaslessslanictaecalitcaesaahaeadaidiien sedan 203 Oe secs tin aepomaphedlinibnenjoiiniichaeted tain a adaokcdntcaaitbdee. ae 347

IN Sisiecdaccpntenshcaiarilisancedscih sinning sanioeiin a 207 ROI RE ENT AT TE ND NTP OET os Or SFT 374

Myles E. Billups NE NEE OE OT LR Se NT ae ITU OS Bae 396

PIP UDE <sriudisdintcciuiietesadncinacnibnietnressnatinconnbbicantnAdiiaiibaadsecaaeraaen ie 209 ROM RMSE SEEN E S SR SPUI I H8. es tS 398

CLOSE ----enonnsseeeeeeccsnsseeeeeceecenneeeeceecennssteecceennnnnatonesenecnseee 223 A ikea ice isan tag Vis hl et re i a 2 400

Alvin Merritt GF inincaell nasil pinitcnidtinicratatbgdaelbase side Lei le oles 401

ER EER oe NENT Orgad USER Ree TEN, nT 231 Oe ra i ae 408

Cross ............ ~onantatnnennetcnotenenceineenaenraneconte 233 a nl ola ea er en eee 408

General Counsel’s Exhibits Rice ere saan a iGaets 407

2 (title page; pages 10; 62-68; and 71-72) ................. - Respondent’s Exhibits (Joint Appendix in Nos. 77-1735 and

3 (title page; pages 10-11; 64-68; and 69)... 243 77-1758) in Case Nos. 5-CC-791, et al.

4 (title page; pages 9-10; and 64-76) ene. 251 | 1 (pages 722a thru 4th paragraph at 731a) ; Short Form

Brats ee tae ie inal i hee 264 through Bill of Lading (755a-756a) 421

11 (litle page; pages 8-9) 270 py n= 1s Deen Ua antag soe eeReremmer een po

WB Cee were s; We BRR) casas secs cscs oeececlece 277 4 (Ltr. dated 9/25/74; Cases No. 14-74)... 453

ST SERNOP R eeee RAA A ORG INT CMH Pr ees 287 (Ltr. dated 2/8/73; Case No. 11-78) ...................... 454

REE NED WE Oe ENEMIES MM A MS ea Srl, 289 (Ltr. dated 6/26/73; Container No. 21-73) 455

AO A ASEM CER COME Rees ape cal Oe 298 (Ltr. dated 10/3/72; Case No. 12-72) 457

I a ae le ee eee 302 | (Ltr. dated 11/29/72; Case No. 20-72) 459

RO IRE A RE RR ae AM Lt Sm 303 (Ltr. dated 5/22/70; Case No. 4-70)... .. 460

a re a 305 (Undated Itr.; Case No. 8-69) ..........0.0.... 461

fa CNOA AM ly OE NE EE SMO Tal 307 (Ltr. dated 12/19/69; Container Case 8-69) 462

OR Aust ee ie eT eee ee ene 308 ie TO iar eo or 464

OE CEE etcetera eee 310 7 Errata to the Administrative Law Judges Decision ......... 465

23 (all pages w/attachment) 2...000..0....ccceccccecccecececseceseceeeee 327 | Order Correcting Decision and Order ........................ 467

BO Scdihawawicensnccase Menace embed cet cee nen Mee a 329 Excerpts from Transcript of Proceedings in Case Nos. 2-CC-

i 1364, et al.

SU sciesianshelscchidassissapahaicianielieditieh aa gidnbsina talents cece 0 gti aa 330 ;

re as ot ee ae ee 334 Witnesses:

ERS se OCS OR aD ee init leech 936 rn McHugh

a 998 BIO mn nenensocencneerenninnensusnnonstinndnuesusedsannsgeconensubahbinnbisionn 473

nine ose nh TET ih ae Rae De NE he 481

DU itekcckeisuinaihinstinssloniesackabadeseahugues hia ilk conan ae 340 4 “ee py a LORI IED LE CE] PEF PETE ENTE 488

WA sh ck ciclicesissrenctnecinaremianpiaihciida casemate Gadi cee eile a etn 343

5 tars

vi INDEX

Excerpts from Transcript of Proceedings in Case Nos. 2-CC-

1364, et al—Continued

Witnesses :—Continued

Richard W. Lee

General Counsel’s Exhibits

3 (A, B, C, D, E, F and G w/attachments) .................

Order of Administrative Law Judge Jalette Striking all

Affirmative Defenses ......... isbaspolemamlictenaniniiaieimyetncdincs..

Order of Administrative Law Judge Jalette Rejecting

Evidence and Closing Hearing ............

Stipulation of Parties dated December 5 and 7, 1977 ......

Administrative Law Judge’s Order Approving Stipula-

tion and Transferring Case to the Board dated De-

oe A. ERRATA Sea ie ee

Board’s Order Approving Stipulation dated January 4,

FRE ONS ES TESS, ATER SET SOE a

Rejected NYSA Exhibit 1 (in its entirety)...

Rejected NYSA Exhibit 2A-2F (in its entirety) ...............

Rejected Affidavit of John M. Haynes, sworn to October

REE tera eA AIS IE Cann Ir

Rejected Affidavit of Michael J. Nicholas, sworn to Oc-

pee at oh. eR URE SATES TSS SCT ae HSE

Rejected Affidavit of William O. Gohlke, sworn to Oc-

SR le

Order of the Supreme Court granting certiorari ......_.

(The decisions of the Board and the decision and judg-

ment of the Court of Appeals were printed in the Board’s

petition for a writ of certiorari and thus need not be

reprinted.)

Page

bs let Sts et Ac cate

1

CHRONOLOGICAL LIST OF

RELEVANT DOCKET ENTRIES

In the Matter of: Int’l Longshoremen’s Assoc., AFL-CIO

& Council of North Atlantic Shipping

Assocs., et al.

Case Nos.: 5-CC-791, 5-CE-48, 5-CC-792, 5-CE-49,

5-CC-793, 5-CE-50, 5-CC-794, 5-CE-51

5.7.75 Charge filed in 5-CC-791

5.7.75 Charge filed in 5-CE-48

5.12.75 Amended charge filed in 5-CC-791

5.12.75 Amended charge filed in 5-CE-48

5.12.75 Charge filed in 5-CC-793

5.12.75 Charge filed in 5-CE-50

5.12.75 Charge filed in 5-CC-792

5.12.75 Charge filed in 5-CE-49

5.13.75 Charge filed in 5-CC-794

5.13.75 Charge filed in 5-CE-51

9.25.75 Order Consolidating Cases, Complaint and Notice of

Hearing in 5-CC-791, 5-CE-48, 5-CC-793, 5-CE-50, 5-CC-

794, and 5-CE-51, dated

10.1.75 Order Consolidating Cases Consolidated Complaint

and Notice of Hearing in Cases Nos. 5-CC-792 and 5-CE-

49, dated

10.7.75 Petitioners International Longshoremen’s Assoc.,

AFL-CIO, et al.’s Answer in 5-CC-791, 5-CE-48, 5-CC-

793, 5-CE-50, 5-CC-794, 5-CE-51, received

10.10.75 Acting Regional Director’s teletype denying request

for postponement of hearing in Cases Nos. 5-CC-791,

5-CE-48, 5-CC-793, 5-CE-50, 5-CC-794, and 5-CE-51,

dated

2

10.10.75 Acting Regional Director’s teletype in Case Nos.

5-CC-791, 5-CC-792, 5-CC-7938, 5-CC-794, 5-CE-48, 5-CE-

49, 5-CE-50, and 5-CE-51, dated

10.10.75 Acting Regional Director’s Order Consolidating

Cases Nos. 5-CC-791, 5-CE-48, 5-CC-792, 5-CE-49, 5-CC-

793, 5-CE-50, 5-CC-794, and 5-CE-51, dated

10.14.75 Petitioners International Longshoremen’s Assoc.,

AFL-CIO, et al.’s Answer in 5-CC-792 and 5-CE-49, re-

ceived

10.15.75 Hearing opened

12.9.75 Administrative Law Judge’s Order receiving Joint

Exhibit No. 1 in evidence, and closing hearing

8.19.76 Administrative Law Judge’s Decision issued

9.14.76 Administrative Law Judge’s Errata, dated

9.13.76 Petitioners International Longshoremen’s Associa-

tion, AFL-CIO, its affiliated District Council and Locals

Exceptions to the Decision and Recommended Order of

the Administrative Law Judge, received

9.13.76 Petitioners Council of North Atlantic Shipping As-

sociations and Hampton Roads Shipping Association’s

Exceptions to the Decision of the Administrative Law

Judge, received

9.23.76 Charging Party Houff Transfer, Inc.’s Statement of

Cross-Exceptions to the Decision of the Administrative

Law Judge, received

8.12.77 Decision and Order issued by the National Labor Re-

lations Board

3

CHRONOLOGICAL LIST OF

RELEVANT DOCKET ENTRIES

In the Matter of: Int’l Longshoremen’s Assoc., AFL-CIO

& New York Shipping Assoc., Inc.

Case Nos.: 2-CU-1864, 2-CE-75 & 2-CC-1365

5.6.75 Charge in 2-CC-1364 filed

5.6.75 Charge in 2-CE-75 filed

5.7.75 Charge filed in 2-CC-1365

3.10.75 Order Consolidating Cases, Consolidated Complaint

and Notice of Hearing, dated

3.16.76 Puerto Rico Maritime Shipping Authority’s and

Puerto Rico Marine Management, Inc.’s request for an

extension of time to answer the complaint, dated

3.19.76 Regional Director's Order Extending Time to

Answer, dated

3.19.76 Petitioner Employer’s Answer, received

3.25.76 Petitioner Union’s Answer, received

4.1.76 Statement of Puerto Rico Maritime Shipping Author-

ity, Puerto Rico Marine Management, Inc., Maritime

Transportation Management, Inc. and Trans American

Trailer Transport, Inc., dated

6.8.76 Regional Director’s Order Rescheduling Hearing,

dated

9.28.76 Regional Director’s Order Rescheduling Hearing,

dated

11.29.76 Petitioners’ letter requesting postponement of hear-

ing, dated

11.30.76 Regional Director’s Order Rescheduling Hearing,

dated

2.11.77 Petitioner Union’s letter requesting hearing be re-

scheduled, dated

2.15.77 Regional Director’s Order Rescheduling Hearing,

dated

4

4.5.77 Petitioner Employer’s Amended Answer, received

4.7.77 Petitioner Union’s First Amendment Answer, dated

4.21.77 Regional Director's Order Rescheduling Hearing,

dated

6.21.77 Petitioners’ Application to Take Depositions, dated

6.22.77 Petitioners’ Application and Demand for Production

of Documents, dated

6.23.77 Regional Director’s Order Amending Complaint,

dated

6.23.77 General Counsel’s Motion to Strike Petitioners’

Affirmative Defenses, dated

6.27.77 Regional Director’s letter denying Petitioners’ re-

quest for production of documents and application to take

depositions, dated

6.30.77 Petitioners’ letter requesting review of Regional Di-

rector’s denial of Petitioners’ request for production of

documents and application to take depositions, dated

7.6.77 Petitioner Employer’s Reply to Motion to Strike De-

fenses and Cross-Motion to Dismiss Complaint, dated

7.11-77 Hearing opened

7.11.77 Petitioner Union’s Opposition to General Counsel’s

Motion to Strike Petitioners’ Affirmative Defenses, dated

8.5.77 Administrative Law Judge’s Order rescheduling hear-

ing, dated

8.22.77 General Counsel’s Opposition to Petitioner Em-

ployer’s Cross-Motion to Dismiss, dated

8.22.77 General Counsel’s Reply Statement in Support of

Motion to Strike Defenses, dated

9.12.77 Administrative Law Judge’s Order granting Gen-

eral Counsel’s motion to strike Petitioners’ affirmative

defenses and denying Petitioner Employer’s motion to

dismiss complaint, dated

ret -

5

9.15.77 Petitioners’ letter requesting special permission to

appeal the Administrative Law Judge’s order striking

all of Petitioners’ affirmative defenses, dated

9.16.77 General Counsel’s telegram opposing Petitioners’ re-

quest for special! permission to appeal Administrative

Law Judge’s Order, dated

9.16.77 Board’s telegraphic order denying Petitioners’ re-

quest for special permission to appeal Administrative

Law Judge’s Order, dated

10.6.77 Administrative Law Judge’s Order rescheduling

hearing, dated

11.2.77 Administrative Law Judge’s Order rejected Peti-

tioners’ affidavits and exhibits attached thereto and ad-

vising they shall be placed in the rejected exhibit file,

and cancelling the scheduled hearing and closing the

hearing, dated

11.2.77 General Counsel’s letter objecting to the receipt of

the affidavit into evidence or to oral testimony by the

witness Gohlke and request that this evidence be rejected

and the hearing closed, dated

12.7.77 Stipulation entered into by the parties

12.22.77 Administrative Law Judge’s Order approving the

stipulation of the parties and transferring proceeding to

the Board, dated

1.4.78 Board’s Order Approving Stivulation and Transfer-

ring Proceeding to the Board, dated

1.27.78 General Counsel’s Brief to the National Labor Rela-

tions Board, dated

1.31.78 Petitioner Union’s Brief to the Board, dated

2.1.78 Petitioner Employer’s Proposed Findings of Facts

and Conclusions of Law and Supporting Memorandum

of Law, dated

2.13.78 General Counsel’s Reply Brief to the National Labor

Relations Board, dated

5.30.78 Decision and Order issued by the National Labor

Relations Board

BEFORE:

The Hon. LEONARD M. WAGMAN, Administrative

Law Judge

APPEARANCES:

BRUCE D. ROSENSTEIN, Esq. |

NLRB, Fifth Region, 1019 Federal Building, Hop-

kins Plaza, Baltimore, Maryland 21201, counsel

for the General Counsel.

WILLIAM L. AUTEN, Esq. 7

(Blakeney, Alexander & Machen) 3450 NCNB Plaza,

Charlotte, N.C. 28280, on behalf of Houff Trans-

fer, Inc., Charging Party.

MARSHALL T. BOHANNON, Esq.

(Herbert & Bohannon) Suite 402, Plaza One, Nor-

folk, Va. 23510, on behalf of Tidewater Motor

Transport Assoc. and Associated Transport, Charg-

ing Parties.

SIDNEY H. KELSEY, Esq.

(Kelsey & Kelsey) 1408 Maritime Tower, Norfolk,

Va. 23510, on behalf of Hampton Roads District

Council of the ILA and Locals 1970, 862, 1248,

846, 970, 1458, 1624, 1784, 1819 and 1840, AFL-

CIO, Respondents.

THOMAS W. GLEASON, Esq.

17 Battery Place, New York, New York 10004, on

behalf of International Longshoremen’s Associa-

tion, the Atlantic Coast District Council of the

ILA and all other locals, Respondents.

C. P. LAMBOS, Esq.

(Lorenz, Finn, Giardino & Lambos) 25 Broadway,

New York, New York 10004;

——@4nd—

FRANCIS SCANLAN, Esq.

(Deasey, Scanlan & Bender, Ltd) Two Girard Plaza,

Philadelphia, Pa., on behalf of Council of North

Atlantic Shipping Assoc, Party to the Contract.

BRADEN VANDEVENTER, Esq.

(Vandeventer, Black, Meredith & Martin) 2050 Vir-

ginia National Bank Bldg, Norfolk, Va. on behalf

of Hampton Roads Shipping Association.

* * 7 *

[52] MR. ROSENSTEIN: Okay. Let’s start on page

two of the Consolidated Complaint, Notice of Hearing

with respect to the enumerated cases. As I understand

it, pursuant to Respondent ILA’s Answer, paragraph 1

in its entirety has been admitted. With respect to para-

graph 2 on page 3, it has been admitted in its entirety.

With respect to paragraph 3, it has [53] been admitted.

With respect to paragraph 4, it has been admitted. With

respect to paragraph 5, it has been admitted. With re-

spect to paragraph 6, it has been admitted except that

there are additional rules embodied in the contract and

which General Counsel will so introduce into evidence.

But the rules as paraphrased in the Complaint in para-

graph 6 were taken from the rules on containers. Para-

graph 8 is admitted. Paragraph 9 is admitted. Para-

graph 10 is denied. Paragraph 11 is admitted. And the

remaining paragraphs 12 through 22 were denied.

I believe Mr. Bohannon has called to my attention that

I did not mention paragraph 7. That was the rules on

containers which were excised from the contract: and

as I have indicated, that the Respondent has admitted

that they are the rules, but also there are additional rules

which are included in the contract itself.

8

Now, we could move to the other consolidated _com-

plaint 5-CC-792 and CE-49. Paragraph 1 is admitted ;

paragraph 2 is admitted in its entirety. Paragraph 3 is

admitted. Paragraph 4 is admitted. Paragraph 5 is

admitted. Paragraph 6 is admitted. Paragraph 7, the

same stipulation that those rules are excised but there

are additional rules contained in the contract which will

be introduced into evidence. Paragraph 8 is admitted.

Paragraph 9 is admitted. Paragraph 10 is denied. Para-

graph 11 is admitted. Paragraph 12 through 22 is denied.

[54] Do you need a repeat of any of those?

JUDGE WAGMAN: No thanks; that’s all right.

MR. ROSENSTEIN: Now, I have not had the An-

swers as filed by Respondent Hampton Roads Shipping

Association or Respondent CONASA. I would ask that

the same admissions as Respondent ILA made also be

made by CONASA, but I would have to defer to Mr.

Lambos as to his position.

JUDGE WAGMAN: Mr. Lambos?

MR. LAMBOS: I stated earlier, Mr. Rosenstein and

Your Honor, that CONASA would adopt the Answer of

the ILA in its entirety. Ph

MR. VANDEVENTER: The same is true for Hamp-

ton Roads Shipping, Your Honor.

JUDGE WAGMAN: Are you ready to put on a

witness?

[65] JACK W. MACE

was called as a witness and, having been first duly sworn,

was examined and testified as follows:

* * * *

DIRECT EXAMINATION

* * * *

[67] Q Now, will you describe for us what a container

is, please?

9

A A container, in terms used in this contract that

we have with the International Longshoremen’s Associa-

tion, is a box at least 20-feet long in which cargo is

stored for transportation on an ocean carrier.

Q Do they come in specific denominations of length?

A They do; 20’s, 30’s, 40’s, et cetera, various com-

binations.

Q Now, I want you to specifically refer to the Hamp-

ton Roads area and ask you the first date when con-

tainers appear.

A A very few containers starting appearing at Hamp-

ton Roads in approximately 1965.

Q Now, I want you also to define, if you would, what

a LCL load is, an LTL load and a consolidated container

load.

A Basically, a consolidated container load would be

that which a cargo in a container belongs to more than

one consignee. Less than trailer load would be practically

the same thing as [68] LCL, likewise.

Q Now, would you define for us what a full shippers

load container is?

A A full shippers load would be a container which

the contents belong to one single beneficial owner.

Q Now, I want you to refer to 1965 and ask you

with respect to a full shippers load whether these con-

tainers when they were destined to a point more than 50

miles from the port area, were they stripped at the pier

by deepsea ILA labor?

A That would be termed a house to house movement

or a pier to house movement, and they were not stripped -

at the pier unless ordered so by the—ordered to do so.

Q Let’s talk about your definition of a house to house

movement. What does that mean?

A As an example, General Electric in Portsmouth

would stuff a container of its own product for an ulti-

mate destination to somewhere in Germany to the con-

signee’s plant there and the box would not be stripped

until it reached its manifested destination in Germany.

* a *

10

[69] Q Now, directing your attention to September of

1974, are you familiar with containers which were

stripped by motor transport carriers within a 50-mile

radius of the port area?

A Yes. a

Q Is it not a fact that these were containers with

full shippers loads?

A Yes. me |

Q And this would be under your definition of a house

to house movement, is that correct?

A Yes. ‘ = -

MR. LAMBOS: Yes. I think the record should in-

dicate that Exhibit 2 is the Hampton Roads agreement

for the period of October 1, 1968 to September 30, 1971;

that Exhibit 3 is the Hampton Roads agreement between

November 14, 1971 and [70] September 30, 1974; and

Exhibit 4 is the Hampton Roads and Longshoremen’s

agreement for the period of October 1, 1974 to September

30, 1977.

MR. ROSENSTEIN: Let the record so reflect, as Mr.

Lambos has stated.

JUDGE WAGMAN: There’s no question about the

authenticity of the contracts? I have a proffer of a

sitpulation.

MR. LAMBOS: We would stipulate that these were

the Hampton Roads Associations with the various ILA

craft unions noted on the cover. With respect to the

two contracts which are Exhibits 3 and 4 dealing with

the collective bargaining portion relating to containers,

we will stipulate that this is the agreement between

CONASA and the ILA and is contained for convenience

purposes within the booklet set forth in Exhibits 3 and 4.

MR. ROSENSTEIN: I'll stipulate to that.

JUDGE WAGMAN: Mr. Vandeventer, do you join in

that stipulation?

MR. VANDEVENTER: Yes, we will join in that

stipulation.

MR. GLEASON: Yes, we join.

11

JUDGE WAGMAN: And also Mr. Kelsey. Does

everybody join in the stipulations? The Charging

Parties?

MR. AUTEN: Yes.

MR. BOHANNON: Yes, sir.

JUDGE WAGMAN: The stipulation is received and

General * * *

* * * *

[76] Q Well, can you give me any indication as to the

exact point of time that the Tidewater Motor Truck

Association was aware of the enforcement of the rules

with respect to full shippers loads?

A I would say that members of the Association had

knowledge certainly as far back as 1969.

Q Okay. And under what area are you contending

that they—or contract provisions are you contending

that they had knowledge?

A I would say the entire contract provisions on rules

of handling of containers, inasmuch as there were viola-

tions going back to 1969.

Q All right. Refer to the contract, General Counsel’s

Exhibit 2 and turn to page 65. Now, are these the first

times that the rules on containers were asserted in a

contract that existed in the Hampton Roads area with

the ILA?

A That’s correct.

[77] Q (By Mr. Rosenstein) Mr. Mace, did you tes-

tify in the Federal District Court proceeding before Judge

Merige on September 17, 1975?

[78] A Yes.

Q And is it not a fact that {I asked you whether or

not on page 65 there were any provisions which related

to the stripping of full shippers loads?

A I don’t remember the exact ‘wording of your ques-

tion. We did talk about full shippers loads, yes. You

asked me for definition of one, of such.

Q And is it not a fact that we reviewed the rules

on containers and you informed me that there was noth-

— “ the rules which specifically related to full shippers

oads

12

A I indicated full shippers loads were exempt from

stuffing and stripping requirements unless ordered to

do so—unless they were ordered to be stripped or stuffed.

> * * *

[81] Q The question reflects, on page 65, is there any

provision in number one, two and three which specifically

states that ILA has the right to strip full shippers loads

at the pier area. :

A It states that containers which are destined to a

beneficial owner, full shippers loads need not be stripped

at the pier area.

Q Allright. Now, you talked about full shippers loads

being exempt from being stripped at the pier area, is

that correct?

A Yes, sir.

[82] Q All right. Now, let’s first start out in 1965

when containers first came into the Hampton Roads area.

Is it not a fact that containers which were destined to a

point beyond a 50-mile radius of the port area were not

stripped at the pier by deepsea ILA labor?

A Well, first, the containers that moved through the

port in 1965 probably could be counted on your hands.

There were a few containers, and there were no set

rules in the port at that time. The numbers were just

insignificant. Most of them were so-called Conex boxes.

Q But you said that containers did come in in 1965,

is that correct?

A There were a few that passed through the port.

Q All right. If they were a full shippers load destined

to a beneficial owner more than 50 miles from the port

area, is it not a fact that they were not stripped at the

pier by deepsea ILA labor?

A Unless they were ordered to be stripped.

Q Okay. Now, let’s get into that. When you say,

unless they were ordered to be stripped, is it not a fact

that this would occur when the container was in transit

and the container was changed from a house to house

movement to a house to pier movement?

A This could be a true example, yes.

Q So if the container remained a full shippers load,

house [83] to house movement, is it not a fact in 1965

13

that it was not stripped at the pier by deepsea ILA

labor?

A That’s correct.

* * * *

[90] Q Now, let’s go back to review 1965, 1966 and

1967. If you had containers similar to the containers

within this case, is it not a fact they would not be

stripped at the pier by deepsea ILA labor?

A We did not have any rules on the handling of con-

tainers during those years.

Q To your knowledge, if you had those types of con-

tainers, is it not a fact that they would not be stripped

at the pier by deepsea ILA labor? If you know.

A It would be only an assumption. I don’t know.

Q_ In other words, you’re not sure because there wasn’t

rules on containers.

A That’s right.

Q And you don’t know from your own personal

knowledge?

A That’s correct.

Q Okay. Let’s go to ine 1968 contract, again, if you

would. Keeping in mind the definition that you have

given as [91] to the types of containers involved in this

case, tell me if the rules on containers in 1968 specifically

state that the ILA would strip those types of containers

which you have just defined to the Court.

A I think the contract is pretty clear stating which

containers are to be stuffed and stripped at the pier and

which would move on.

Q Is there anything that you see in the rules which

specifically gave the right of the ILA to strip full ship-

pers loads destined to a beneficial owner more than 50

miles—excuse me, going to the beneficial owner beyond

the 50-mile radius?

A No.

Q_ Now, turn to General Counsel’s Exhibit 3, the 1971

contract. Turn to page 66. Now, is it not a fact that

those rules in the 1971 contract are identical to the rules

on containers in the 1968 contract?

A That is correct.

14

Q Once again I ask you, keeping in mind the defini-

tion that you have told us with respect to the containers

involved in this case, is it not a fact there is nothing in

the rules on containers which state that the ILA can ship

full shippers loads going to a point more than 50 miles

from the port area?

A No, there’s nothing in the rules.

* * * *

[92] Q Now, is it not a fact that ILA used Rule 1(a)

(3) and 2(b) (2) as the rules which they alleged were

the violations against the employer members of the Hamp-

ton Roads Shipping Association?

A That is correct.

Q And that was negotiated for the first time in June

of 1974 to be inserted in the October 1, 1974, contract?

A Rule 1(a) (3) in the ’74 contract is new wording;

however, the concept did not change. It says, “for con-

tainers going [93] to a point outside of the 50-mile

radius not be stripped.”

Q Okay. So the concept you’re saying is that when

a full shippers load comes-into the pier that it is not

stripped by deepsea ILA labor when it is going to a

point more than 50 miles beyond the port area.

A That’s correct.

* * * *

[96] Q Now, within those rules, there is a 30-day

warehousing clause rule known as 2(b) (4), is that

correct?

A That’s correct.

Q And that’s in the October, 1974, contract?

A That’s correct.

Q Would you for the Court describe what that 30-

day warehousing clause was?

A Basically, it says on inbound cargo in the normal

course of movement of such cargo, it may be warehoused

for a period not less than 30 days on which normal ware-

housing charges are paid; and the container then would

be exempt from being stripped at the pier and may be

stripped at the warehouse.

15

MR. ROSENSTEIN: Rule 2(b) (4), Your Honor, in

the 1974 contract.

Q (By Mr. Rosenstein) Now, during the period of

time of the suspension on the rules on containers with

respect to the 30-day warehousing clause, is it not a fact

that the containers that would normally go into the ware-

house were being stripped at the pier by deepsea ILA

labor?

[97] A Well, they were not going to the warehouse.

Whether they, in fact, were being stripped at the pier, I

don’t know; but that operation was suspended.

* * & *

[98] Q All right. Next, you mentioned that, upon

order, full shipper loads might be stripped at the pier

prior to 1968. If you know, what circumstances would

call for that stripping?

A I guess if the cargo changed ownership during

ocean transfer oy any number of reasons.

Q Would there be any possible reason, other than the

fact that all of the cargo in that container was not going

to the same place?

A You could say anything is possible, I guess.

Q Well, can you identify another reason that that

container would have been stripped?

A I can’t think of any particular reason right off-

hand.

[99] MR. AUTEN: I have no other questions, Your

Honor.

JUDGE WAGMAN: Mr. Bohannon?

MR. BOHANNON: Yes, sir, I do have one or two.

Q (By Mr. Bohannon) Mr. Mace, up until the 1974

contract, couldn’t it be said that any full shipper load

containers coming into Hampton Roads went to their

destination without being stripped?

A Yes, sir.

Q All right. Regardless of their destination, if it

were a full shipper load, it was not stripped at the piers?

A That’s correct.

Q Up until ’74?

A Even—

16

Q Even now?

A Even now, yes. Right.

Q That’s my next question. Even now, the bill of

lading or the shipping documents showed it to be a full

shippers load, it is not stripped at the piers, is it?

A Right.

Q So along that line in the history of containers, have

full shipper loads ever been stripped at the piers unless

upon direct orders of the owner or someone else?

A Ido not know of any cases.

Q Now, you testified in answer to Mr. Rosenstein’s

questions about a meeting you had with Mr. McNeil that

[100] represented the Tidewater Motor Transport As-

sociation. Why was there a meeting?

A I did not personally attend the meeting. The

Steamship Trade Committee had a meeting, and they

discussed the problems that they had with the various

motor carriers over the years. A new contract had just

been negotiated; and, again, the steamship agents felt

like they ought to advise the motor carriers of the terms

and conditions of the new contract. So, therefore, an in-

formal meeting of subcommittee level was set up with

Mr. McNeil and several of his members. I did not at-

tend the meeting; but that was the purpose of the meet-

ing, to apprise them of this new contract.

Q And that was the first such meeting, was it not?

And the only such meeting?

A To my knowledge, yes, a meeting as such, per se.

Q And it could be fairly said that it was occasioned

by your new ’74 contract?

A Yes.

Q And that did have the container rules completely

rewritten? |

A _ I wouldn’t say completely rewritten. Similar.

Q Well, the language is different in every paragraph?

A Right.

* * * *

CROSS EXAMINATION

[102] Q This case is about containers that are short-

stopped at a trucking station where the cargo is removed

17

not by the consignee’s employees but by the truckers’

employees, is that correct?

A That’s why the violation was imposed, yes.

* * * *

[106] Q (By Mr. Lambos) Mr. Mace, would you

please tell the Court in your own words what the prac-

tice was before the Dublin rules with respect to a con-

tainer destined to go to a warehouse within the port of

Hampton Roads?

A If such container did not go to a consignee’s fa-

cility within a 50-mile radius—a beneficial owner’s fa-

cility within a 50-mile radius, then, it was termed a

stripper. It had to be stripped.

[107] But if the container was destined to go to the

beneficial owner’s facility within a 50-mile radius, then,

it was not a stripper. It did not have to be stripped.

But if the container were to go to a consolidator or a

broker or a forwarder’s facility or what-have-you, then,

the container had to be stripped at the pier by ILA

labor.

— * * *

[115] Q (By Mr. Lambos) Mr. Mace, the Hampton

Roads Shipping Association is one of the constituent

members of CONASA, is it not?

A That is correct.

* © * %

REDIRECT EXAMINATION

[122] Q (By Mr. Rosenstein) Mr. Mace, with re-

spect to a full shippers load, is it not a fact that by the

fact that ILA does not strip those containers at the pier,

that they receive a royalty for those containers?

A That is correct.

Q All right. Now, what was the reason for inserting

that royalty and why does ILA get that royalty?

A The royalty was because it was negotiated in the

contract because containerization was a form of automa-

tion and, thereby, reducing the amount of hours in which,

say, a ton of cargo would be handled via containeriza-

tion as opposed to break bulk handling.

18

Q Now, would ILA on a 20-foot full shippers load

going to a beneficial owner at its manifested destination

obtain a royalty?

A They would.

Q And would that be so much per ton?

A That is correct.

Q And would it be between 40 and 50 dollars pos-

sibly per container?

A It’s conceivable.

* & = *

[133] Q That’s my point. If they were stripped within

the 50-mile radius, they would have been charged under

Rule 1(a) (3) and 2(b) (2). If they were stripped out-

side the 50-mile radius, they would have been charged

under the evasion principles, is that correct?

A Yes. a . : :

[187] Q But now, I’m talking specifically about a

full shippers load which is going to a single consignee

and the union charges that there is false documentation.

Now, which document did they say was false?

A Well, if the argument was presented in defense of

the container being stripped, that it was stripped at a

proper geographic point; and that geographic point was

different than its manifested destination.

Q All right. But if it was stripped in Richmond,

that was not a proper geographic point, was it?

A If it wasn’t in agreement with the manifest and

delivery order.

Q In fact, the ILA’s contention wasn’t that it was

stripped at an improper geographic point but that it was

stripped by the wrong people?

A It thereby wouldn’t be a true house to house

movement, if it wasn’t stripped by the proper people,

yes. It was stripped at a place, as the contract states,

a freight [138] forwarder, or a consolidator or a ware-

house or broker. These particular points or these par-

ticular operations are not acceptable points where con-

tainers may be stuffed or stripped.

Q All right. In any case where a violation was al-

leged, would the shipping companies necessarily have

19

known that the motor carrier intended to pull the con-

tainer to his terminal in Baltimore or within the 50-

mile area and strip it?

A I'd say that in 99 percent of the cases the ocean

carrier would have no knowledge of this. Once that con-

tainer leaves the terminal, he really doesn’t have any

knowledge of any—

Q All right. In 99 percent of those cases, how can

it be that the shipping company falsified any document?

A It’s not always the case. I haven’t seen these docu-

ments, but I don’t think it’s always the case that the

shipping company or ocean carrier, that is, would be

falsifying any documents.

It’s a relationship .f where the container is stripped

and where the documents state that the container should

be stripped.

* * * *

[140] All I want to know is what was the practice with

respect to containerized freight and the stripping of

those containers where the cargo was supposed to go

beyond the 50-mile radius; and I want to know what

paragraph 2 on page 65 and its apparent successor in

this subsequent contract, you know, where did they all

start. It’s a question of palentology.

MR. LAMBOS: We intend to present some paleon-

tology.

JUDGE WAGMAN: I want to know where did it all

come from.

MR. GLEASON: Your Honor, may I ask the witness

a couple of questions?

JUDGE WAGMAN: Certainly. Mr. Mace is a patient

man.

RECROSS EXAMINATION

Q (By Mr. Gleason) Mr. Mace, I’m a little confused

on this shippers load and the 50-mile radius. Now, can

you tell me the difference between a shippers load inside

the 50-mile radius and inside the 50-mile radius?

A There is none, basically.

Q So the same rules apply to the shippers load, if it’s

in the 50-mile radius or its outside the 50-mile radius?

A That’s correct.

20

Q And if a container that’s destined across the street

from the pier and is a shippers load going to the shipper

and [141] it goes to a truckman who ships it, is that a

violation?

A If it goes to the trucker, yes.

Q Okay. The same thing. Has it been the practice

in this port that if a container went outside the 50-mile

radius—was destined to go outside the 50-mile radius and

went to the trucker, whether it was inside the 50-mile

radius or outside the 50-mile radius, was that a violation?

A If it went to the trucker, it was a violation.

Q Regardless of where it went?

A That’s correct.

* * * *

[148] MR. BOHANNON: I thought we were ap-

proaching this from a different viewpoint, Your Honor.

I’m trying to show that the documentation is what con-

trols who strips. Not what happens to it after it leaves

the pier.

JUDGE WAGMAN: What’s been the practice?

MR. BOHANNON: That’s been the practice.

Q (By Mr. Bohannon) Mr. Mace, let me ask you

again. If the documentation on a container shows that

it is to go to the beneficial owner directly or the bill of

lading says this goes to the J.C. Penney Company in

Greensboro, North Carolina, it’s a full container load.

Now, that’s a full shippers load. That’s what we are

talking about here today?

A Right.

Q Such a container has never been stripped by ILA

labor, has it?

A Going back to your question, you said, “If this.”

What are you talking about, the container in tact?- “If

this goes to.”

[149] Q No,I didn’t say that, sir.

A If the container in tact goes to—

Q No, let me ask the question again.

A Okay.

Q I’m talking about the documentation. We are not

talking about what happens to it after it leaves; we are

21

talking about as it comes to the pier what the document

shows. It shows it’s going to J.C. Penney in Charlotte

or Greensboro, wherever their warehouse is down there;

and that container goes to the truck line that picks it

up, invariably, does it not?

A Yes.

[152] Q (By Mr. Auten) Mr. Mace, let me ask you

one thing. I’m not talking about who is entitled to the

work according to the [153] rules. I’m not talking about

who should do it. I’m not talking about who may be

in violation of the rules. I want to know if anyone other

than these motor carriers stripped full container loads

destined to a single consignee.

A I’m sure that the ILA from time to time has

stripped a full container load.

Q Do you know that as a fact?

A If they were ordered to do so, yes.

Q Now, why would they have done so, sir?

A Well, for any number of reasons. The option of

the consignee. Maybe the goods were going to Georgia

and he found a local consumer for the goods and he

wanted the goods stripped at the pier for local distribu-

tion rather than distribution in Georgia.

* * * *

_Q (By Mr. Lambos) Mr. Mace, assuming the ques-

tion just asked of you, assuming that a carrier of the

Hampton Roads Shipping Association had a so-called full

shippers load destined for Cincinnati and the trucker

came up to the pier and told your carrier member that

he was going to take it down the street to a trucking

station and do it, would not your carrier member in-

<< waane to strip that container?

; SENSTEIN: Objection; that’s hypothetical.

[154] A That’s correct. dasiasens

JUDGE WAGMAN: Overruled.

* * * *

[155] (By Mr. Auten) This, again, Mr. Mace, is ad-

dressed to how you folks interpreted the contract which

22

you had back in 1968. You looked in the booklet—and

this is page 65 of the 1968 and 1971 collective bargaining

agreement. And you looked in the booklet in the first full

paragraph at the top of the page and it says that the

rules on containers apply only to containers meeting

criteria that are enumerated one, two three right below

that, is that correct?

A Yes. ;

Q All right. The first of those criteria says, “Con-

tainers owned or leased by employer signatory members

including containers on wheels which contain LTL loads

and consolidated full container loads.

A Uh-huh.

Q That paragraph does not apply to any full ship-

pers load, does it, sir?

A No,sir.

Q All right. Number two says, “such containers.”

What did you take such containers to mean, did you

take that to refer back to number one?

[156] A Any such containers.

Q Does it refer back to number one?

A It could.

[167] CLETUS E. HOUFF

was called as a witness and, having been first duly

sworn, was examined and testified as follows:

JUDGE WAGMAN: Please have a seat, sir, and state

your name and spell it, please.

THE WITNESS: C. E. Houff, H-o-u-f-f.

“DIRECT EXAMINATION

Q (By Mr. Rosenstein) Mr. Houff, will you state

your name and address for the record, please?

C. E. Houff, Weyers Cave, Virginia.

And where are you employed, sir?

At Houff Transfer, with headquarters in that city.

And what is.your capacity?

President.

PO Pd Pp

23

Q And what is the business of Houff Transfer?

A Motor common carrier.

Q Do you have facilities located throughout the

United States?

[168] A _ In five states.

Q Do you have a facility in Baltimore, Maryland?

A Wedo.

Q Do you have one in Norfolk, Virginia?

A Yes.

Q Now, are you the individual who is a Charging

Party in some of these cases?

A Yes.

Q Now, would you tell me the approximate number

of employees that you have at your Baltimore facility

and the Norfolk, Virginia, facility?

A At Baltimore, we have 14 employees. At Norfolk,

we have five.

Q@ Are any of the employees at either Baltimore or

Norfolk represented by a labor organization for collective

bargaining purposes?

A No.

Q_ Now, how close is your Baltimore faciilty and Nor-

folk facility to the respective port areas?

A At Baltimore, we are approximately three miles

from the Dundalk terminals. In Norfolk, we are three

blocks from the Lambert Point dock.

Q And Lambert Point dock is in the Norfolk area?

A That is correct.

Q Now, do you utilize containers in the transportation

of [169] goods in interstate commerce?

A Yes.

Q Would you describe how you utilize a container?

A We pick the containers up from the piers, take them

to our terminals, weigh them; and, if they are over-

weight, they are transferred to the trailers of Houff

Transfer. In some cases, they may not be overweight

and alsc be transferred to the trailers of Houff Transfer.

* * * *

Q What are the size of the containers that you would

pick up at the pier?

24

A 20-foot and 40-foot lengths. Some 35’s, but mostly

20- and 40-foot.

Q Now, how is Houff Transfer notified that they are

going [170] to pick up a container?

A The broker or agent phones you that it has one

container or several containers destined to some con-

signee; and he then provides you with papers, delivery

receipts or dock receipts which you must have in your

possession and carry it to the piers, which is authoriza-

tion for the piers to tender these containers to Houff

Transfer.

Q Well, would you describe specifically what a de-

livery order is, please? ;

A It’s a piece of paper showing where the shipment

originated from, who it’s destined to, what the shipment

consists of, the weight, the container number; and, in

some cases, the seal numbers that are attached to the

container.

* * * *

[173] Q And will you describe how motor transport

carriers like Houff would utilize the bill of lading?

A A bill of lading is issued by the shipper covering

whatever shipment he may be shipping at the time, and

it is a document by which the shipment is received; and,

from this bill of lading, a freight bill is made by Houff

Transfer providing essentially the same information that

is covered on the bill of lading.

* * * *

(By Mr. Rosenstein) Now, I direct your atten-

tion to the Baltimore port area, and I ask you when did

containerization begin.

A It began, to my knowledge, around 1965.

That’s in the Baltimore area?

A In the Baltimore area.

Q Now, you have already defined a full shippers load.

I want you to tell me in 1965 what Houff Transfer did

when they [174] picked up a full shippers load at the

pier area in Baltimore.

A We were requested by either an agent of Baltimore

or perhaps a consignee itself to go to pier so-and-so and

25

contact whatever steamship the company may have the

container and pick up the same and deliver it—deliver the

merchandise to the consignee.

Q Now, what is the distance in miles from the pier

area that most of your shipments are destined?

A It would range from a minimum of ‘150 miles to a

maximum of 450 miles.

Q When yov picked up a full shippers load at the

pier, was the seal in tact? ;

A In most cases.

Q Had the full shippers loads been stripped by deep-

sea ILA labor at the pier?

A No.

Q Directing your attention to the Norfolk area, when

did containerization commence?

A At about the same time, as I recollect.

Q Will you describe, in the Norfolk area, how you

picked up a full shippers load at the pier area?

A In the Norfolk area, the brokers would issue the

instructions. In some cases,—and I’m talking about 1965

—we would be directed by the consignee to contact what-

ever broker may be handling the shipment. And once the

contact [175] was made, you may have had a document

to carry to the pier or it may have been done by a

telephone conversation, to go to the pier and get con-

tainer so-and-so; and there the documents would be issued

to you at the pier.

Q Now, when you picked up a container of a full

shippers load at the pier in Norfolk, was the seal in

tact?

A In the majority of the cases.

Q All right. Would you describe for me when the

seal would not be in tact?

A Occasionally, the seal may be broken by customs;

and, on some occasions, it may have gotten broken in

transit. It is a policy to check the seal numbers before

the containers were picked up.

Q Were containers of full shippers loads in 1965

stripped at the pier by deepsea ILA labor?

A No.

26

‘ Baltimore

Now, let’s go to the year 1966 for both

and Norfolk. Was the procedure the same as you de-

scribed for 1965?

A Yes.

Were the containers stripped at the pier by deep-

sea ILA labor?

A No. e

Q And yovu’re talking about full shippers loads?

A Correct.

In 1967, in Baltimore and Norfolk, were the con-

tainers [176] stripped at the pier—full shipper load

containers by deepsea ILA labor?

A No.

Q In 1968, for both Baltimore and Norfolk, were the

containers stripped at the pier—full shippers loads—

by deepsea ILA labor?

No.

In 1969, the same question.

No.

In 1970?

No.

In 1971?

No.

Is there any method in which a consignee—and

that’s the beneficial owner—can require a container to go

through in tact to the final destination?

A Yes.

1177] Q How?

A By requesting exclusive use of the equipment.

Q What is exclusive use of equipment? ;

A It means equipment will move through with what-

ever merchandise that may be on it without anything

DPOPOrO pO pO PO pL Pp

_

7)

~]

bo

—~2

27

being added on to it and it must be expedited. In other

words, once you receive it, it must keep moving.

Q From 1965 to the present date, has Houff Transfer

ever had exclusive use of equipment requested?

A Certainly not over two or three times, if ever. I

recall one shipment that may have been a container.

I’m not real sure; but it’s very rare that that situation,

because there is a penalty assessed to the consignee and

higher transportation costs.

Q Directing your attention to February 19, 1974, I

ask you whether or not you picked up some containers

on that date.

A Yes.

Q Where did you pick them up and what containers.

did you pick up?

A I picked them up from the Dundalk Marine Termi-

nals from United States Lines destined to—

Q How many containers?

A Two.

Q Did you pick up other containers?

A I’m not sure, on that particular date.

[178] Q Did you pick up any containers from Lavino

Shipping?

A Yes.

Q Was that in that same general time frame?

A Yes.

Q What type of containers were these three con-

tainers which you picked up at the pier area?

A 20-foot containers.

Q And what kind of loads did they contain?

A Two containers from United States Lines con-

tained silicone with the total weight of 78,000 pounds on

the two containers. The container from Lavino was

drums of picoline with the weight of about 38,000 pounds,

80 drums.

Q Were these containers described as full shippers

loads?

A Yes.

Q All right. What did you do from the point that

the broker told you that you were going to pick up these

containers, that you had been designated as the carrier?

28

A Picked the containers up from the steamship com-

panies, took them to the Baltimore terminal, transferred

them to Houff trailers.

Q What specific reasons did you use to open the seal

and strip those containers?

A The number one reason was they were overweight ;

they couldn’t be legally pulled over the highways of Vir-

ginia and West Virginia.

* * * *

[179] Q Now, do you want to explain those weight

laws in relationship to the container that you picked up

at the Baltimore pier area and stripped at your terminal?

A The containers which we picked up in Baltimore

were all three 20-foot containers; and they show the

distance between the first and rear axle and the maxi-

mum weight allowed under those allocations. _

Q So what determination did you make with respect

to that chart on the three containers which you picked

up?

A That they were all overweight.

Q And, therefore, what did you do?

A We unloaded them and transferred them to Houff

trailers. oa es

Q And is this to comply with the State of Virginia’s

rules and regulations on motor transport?

A Yes.

* * * *

[182] Q (By Mr. Rosentein) Now, you said the first

reason was as a result of the distribution of load for

stripping a container. Would you continue and tell me

if there were any other reasons that you determined it

necessary to strip the three containers?

A The second reason was that, being a 20-foot trailer

or 20-foot container loaded to the roof, going through the

mountains of West Virginia, it’s a very unsafe operation,

particularly in the wintertime. U.S. Highway 60, which is

the highway that Alloy is located on, is one of the most

obsolete and mountainous roads in the Continental United

States.

29

The third reason is that when we unloaded the con-

tainer and we turned it back to the steamship lines, we

saved the rental cost on the container.

[183] Q Now, the rental cost, is that under your equip-

ment interchange agreement which was introduced as Gen-

eral Counsel’s Exhibit 15?

A It is.

Q And do you pay the steamship line for the use of

those containers?

A Yes.

Q Those containers are owned by whom?

A They pay the steamship lines for them. Some of

them own them and some of them lease them from the

container people.

Q Houff does not own the container that you pick up

at the pier?

A Under no conditions.

* * * *

[184] Q (By Mr. Rosenstein) Mr. Houff, without go-

ing through the documentation, would you relate what

actions took place as a result of your stripping full ship-

pers loads at your facility in Baltimore, Maryland?

[185] A The steamship companies presented us with

bills totaling $3,000.00, claiming fines of some sort that

they had encountered and asked that Houff Transfer re-

imburse them in these amounts; and, since Houff Trans-

fer chose not to reimburse them, then, the steamship lines

cancelled the interchange agreement.

Q Okay. Did the steamship companies tell you the

reasons that they were fined?

A It said because we had unloaded the containers.

Houff Transfer unloaded the containers at our terminals

and put it on Houff equipment.

Q Now, will you describe once again the consequences

of your equipment interchange agreement being cancelled

with Lavino Shipping and U. S. Lines?

A Once the equipment interchange was cancelled, then,

the steamship lines refused to give you any more con-

tainers, because they said they didn’t have an effective

interchange agreement.

30

Q Since the date of the cancellation of the U. S. Lines

equipment interchange agreement, had Houff been selected

as the motor transport carrier for full shippers load?

A Many times.

MR. LAMBOS: I didn’t hear the last question and

answer.

Judge Wagman: Do you want to read that back, Mr.

Reporter?

MR. ROSENSTEIN: The answer was: “Many

times.”

So MR. VANDEVENTER: What was the ques-

tion

MR. ROSENSTEIN: The question was: After the

cancellation of the equipment interchange agreement by

Houff and Lavino, had Houff been selected as the motor

transport carrier to pick up full shippers loads?

Q (By Mr. Rosenstein) Now, who would select you

for the picking up of these containers of full shippers

loads?

A The consignees and the brokers, in some instances.

Q Now, has this occurred in the year 1975?

A Yes.

Q And I show you General Counsel’s Exhibit 25, and I

ask you to examine that briefly.

A This is a letter by the consignee requesting the use

of Houff Transfer on two United States Lines containers

covering baler twine to move from Norfolk, Virginia, to

Staunton, Virginia. Also, attached is a letter from the

United States Lines to the consignee saying that Houff

Transfer had not signed an interchange agreement with

= ey and we could not release our equipment to

ouff.

Q And the date of that was January, 1975, is that

correct?

A That’s correct.

Q Now, let’s go back, Mr. Houff, to the point that

you pick up the full shippers load at the pier area. I

show you General Counsel’s Exhibit 16, the uniform

straight bill of lading. And I ask you whether there is

31

anything in that [187] document that precludes you from

stripping a container at your facility.

A None whatsoever.

Q I show you what has been marked as General Coun-

sel’s Exhibit 18, the delivery order. And I ask you

whether or not there is any provision which preclude you

from stripping the container at your facility.

A None whatsoever.

Q The delivery order covers what, specifically?

A It covers two United States Lines containers with

calcium silicium moving from the Dundalk Marine Term-

inals to Union Carbide at Alloy, West Virginia.

Q Is there anything on that delivery order by the con-

signee precluding you from stripping those containers?

A No.

Q Was there any indication by the broker on that de-

livery order precluding you from stripping the containers

at your facility?

A No. aa

Q Is there anything on that order by the shipping

lines which precludes you to strip that container at your

facility?

A No.

Q On the three containers that you picked up, two

from the U.S. Lines and one from Lavino, was there an

exclusive use of equipment requested?

[188] A No.

Q I show you what has been marked as General

Counsel’s Exhibit 15, the equipment interchange agree-

ment. I ask you if there is anything in the equipment

interchange agreement between Houff and U. S. Lines

that precludes you from stripping a full shippers load at

your facility?

A No.

Q Mr. Houff, are there any other documents which you

utilize to pick up a full shippers load at the pier area?

A No.

Q So the bill of lading and the equipment interchange

agreement and the delivery order are the documents

that you utilize?

A That’s correct.

32

Is there any other document that you have knowl-

edge of that specifically precludes you to strip full ship-

pers loads at your facility?

A Not to my knowledge.

MR. ROSENSTEIN: I have nothing further of this

witness.

MR. AUTEN: Your Honor, I have one question.

JUDGE WAGMAN: Go ahead.

FURTHER DIRECT EXAMINATION

Q (By Mr. Auten) Mr. Houff, in your testimony,

you went into reasons why you might strip containers con-

taining full shippers loads going to a single consignee. As

I recall, [189] three of them, the weight rules imposed by

the states was the first; the second was safety reasons in

addition to the weight rules; and the third was the

economy, specifically having to do with the rental charge,

which was charged by the shipping company.

Now, in addition to those reasons, are there any other

operational factors that might suggest to you that a con-

tainer be stripped?

A Yes. On some containers, the fifth wheel pin lo-

cated on the chassis will not prevent or will not permit

the use of a tandem axle tractor in the movement of that

container. In other words, the rear wheels will hit the

chassis and, therefore, you are not able to use a tandem

axle tractor. If you did move the 20-foot container, there’s

always the problem of trying the load the thing back,

because you only have half the amount of floor space in

that that you would have in regular—or less than half the

floor space that you would have in regular common carrier

equipment, or the equipment of Houff Transfer.

If you are not able to load it back and it has to sit

around for days or weeks, it’s costing money. Again, it

comes back to the cost of the—

Q Just for purposes of clarity, describe what you

mean by loading back.

A In other words, if it would be pulled to the con-

signee’s [190] destination—and we will use Alloy, West

Virginia as an example—and then get that equipmert

33

loaded back into the Baltimore area, it’s practically impos-

sible to get a pay load on it. In other words, even if you

did load it, it would move for about half of the revenue

that should have been on it; and if you only move it for

about half of the revenue, then, it’s a losing proposition.

MR. AUTEN: Thank you, sir.

JUDGE WAGMAN: Mr. Bohannon?

MR. BOHANNON: No.

JUDGE WAGMAN: Mr. Lambos?

CROSS EXAMINATION

Q (By Mr. Lambos) Mr. Houff, you have been in

business in Baltimore since 1946, haven’t you?

A Yes, sir.

Q And you have been in business in the Port of Hamp-

ton Roads since 1952?

A I would say that’s correct.

* * * *

[198] Q Now, who made the decision on February 19,

1975, that the containers were overweight?

Our central dispatch in Weyers Cave.

Where is central dispatch?

In_Weyers Cave, Virginia.

And-when was that decision made?

As soon as the trailers were waiting.

You mean the weight of the containers wasn’t

known until the containers were actually picked up and

weighed in your facility?

A That’s correct.

* * * *

[210] A _ For the last year, our business has been way

off. U.S. Lines cut off and they were the biggest ship-

pers of containers in the territory which we serve. La-

vino would not ship any more by way of Houff.

And I’d say we moved well over a hundred.

Q A hundred containers?

A Right.

OPOPOP

34

Q Since last year was somewhat abnormal, take the

year before that. How many would you have moved the

year before that?

A Several hundred.

Q Now, when you say several hundred, you are

talking about steamship company containers?

A Right.

JUDGE WAGMAN: The year is what, 1974? Or are

we talking about a year back from today and this next

year, or is it two years back from today?

THE WITNESS: I’m talking about a year beyond

the time when U.S. Lines and Lavino cut us off.

JUDGE WAGMAN: When was that, January?

MR. LAMBOS: That was February of 1974.

MR. AUTEN: For purposes of clarity on the record,

I think it was midsummer 1974 when those documents

show that the interchange agreements were cancelled.

* * * *

[212] Q (By Mr. Lambos) What other work do you

handle at the Norfolk and Hampton Roads terminals?

A Outside of the container business?

Q Outside of steamship company container business.

A Well, we handle for about a half a dozen. GSA, I

would assume, is our biggest shipper. We handle for

Texaco, Southern States, Chase Bank, several others.

Q Now, these are movements in the domestic traffic

as compared with the foreign commerce of the steamship

company containers, is that not correct?

A Yes.

Q Is most of your business, in fact, not domestic

business?

A No, we have more domestic business than we do

container business. .

Q Substantially more, in fact?

[218] A _ I wouldn’t say it was substantial; but we have

more domestic than we do container.

Q In Norfolk, you indicated that you have five em-

ployees.

A Right.

35

Q Could you tell us how many of those employees are

Supervisory and how many actually perform loading or

unloading of container work?

A One supervisor has to do the loading and unloading.

Q Do any of these remaining four employees perform

office work?

A _One may do a little on occasion; but his primary

function is to load and unload. In addition to that, we fill

in with over-the-road men, helping them to do loading and

unloading.

Q How many manhours does it take to load a con-

tainer? In other words, take the cargo out of the 20-foot

steamship box and put it into one of your own boxes.

A From a half to an hour.

Q From a half an hour to an hour?

A Right.

Q With how many individuals working?

A One.

Q One individual?

A Right.

Q Would that one individual be operating a machine of

some type?

[214] A A forklift.

Q He would be operating a forklift. This one individ-

ual would take a half an hour to an hour?

A Oh, it’s been done in that length of time.

Q And you would say that the two U. S. Line con-

tainers required about one hour of labor to move the

78,000 pounds from the two containers into your equip-

ment? .

A That’s correct.

* * * *

[218] Q (By Mr. Kelsey) Mr. Houff, would you tell

bon gp whether in 1965 Houff Transfer Company

Stripped any containers at any piers in Norf

ton Roads? Qn the piers. ts reaiaad

A No, we did not strip any on the piers.

Q In 1966, did Houff Transfer strip any containers on

the piers anywhere in Hampton Roads?

A : Houff Transfer did not strip any containers on

the piers.

36

Q At any time, from 1965 through the present daie,

is that correct?

A That’s correct.

* * * *

[222] Q (By Mr. Gleason) When did you first handle

containers for U. S. Lines? ;

A Oh, I would assume sometime prior to signing this

agreement.

Q When was the first time you signed the agreement

with U. S. Lines?

A March 18, 1970.

Q So that was the first time you started actually

handling containers for U. S. Lines?

A In most cases, we handle some containers before we

have an interchange agreement; and the interchange

agreement follows the handling of some of the containers.

Now, with reference to your terminal operation in

Norfolk and Baltimore, did the ILA ever approach you

about [223] organizing your employees?

A No.

Q Did the ILA, to you knowledge, speak to you about

your interchange agreement and pressuring U. S. Lines

to cancel it?

A No.

* * * *

MYLES EVERETT BILLUPS

was called as a witness and, having been first duly sworn,

was examined and testified as follows:

[224] DIRECT EXAMINATION

* * * *

A Yes, I am.

Q And, at that time, were you president of the Hamp-

ton Roads District Council, which you still are today?

[225] A _ Istill am, yes.

Q And you succeeded on the death of Mr. Alston to

International Vice President?

A That’s correct.

37

Q Will you refer back to page 64, of the 1968

agreement?

A Okay.

Q Now, number one, under containerization, it speaks,

does it not, only with respect to containers containing

LTL loads or consolidated full container loads?

A It goes a bit further. It says, “which are destined

for or come from any person, including a consolidator,

who stuffed containers of outbound cargo, or a distributor,

who strips containers of inbound cargo, and including a

forwarder.”

Q And that includes containers containing LTL loads

or consolidated full container loads, is that correct?

A That what I just read does.

- Q Now, that contained in number one in parentheses

is the same identical language which is contained on page

65 in (a) (2), is that correct?

A A container which comes from—(a) (2)—

Q You don’t have to read it. Just compare what’s on

i 9 In parentheses with the (a) (2) on page 65.

es.

Q And, therefore, the rules on page 64 and on

65(a) (2) apply to LTL and peaadidaten full taneas

loads, is [226] that correct?

A In the context just outlined.

Q That is correct. Now, if you will turn to page 68—

Excuse me. Page 66 of the agreement. If you will look

under (c) (1), it refers to (a) (3), which is the 50-mile

radius clause, is that correct?

A That’s correct.

Q And it talks as to LTL movements only, is that

correct?

7) Segrr to LTL, container loads, yes.

ow, if you will refer to page 68, paragraph

it states that if the purpose of pica sins pagan:

the present work jurisdiction of longshoremen and all

their deepsea ILA crafts over any containers loaded with

LTL cargo or consolidated full container loads as de-

fined herein. So paragraph 8 talks about—

38

A It stops, but I don’t see a period behind herein.

It says, “herein is not accomplished by the provisions

of these rules on containers, then, either party shall have

the right to renegotiate these provisions or any part

thereof by giving notice to the other party.”

Q It speaks, however, does it not, with respect to

LTL cargo and consolidated full container loads, is that

correct?

A That’s correct.

Q In the 1968 agreement, there is nothing specifically

which deals with full shippers loads in the rules on

[227] containers, is there?

A Well, the references to the ones that you made

back in 2(a), 2(b), the full container load, they were

giving the exceptions here to the rules.

Q Mr. Billups, you—

’ A ~At that time, in 1968, full shippers loads going to

a beneficial owner’s own place within or without the 50-

mile radius was not stripped by ILA labor.

Q They were exempt, correct?

A At that time, yes.

Q Okay. So deepsea ILA labor in 1968 did not strip

a full shippers load at the pier area when it was going

to a point either within 50 or beyond the 50-mile radius

of the pier area?

A To a beneficial owner or qualified shipper, at his

own installation.

Q Now, by contrast, didn’t you arrange for a royalty

payment as a result of not stripping full shippers loads

at the pier area which you would receive on each

container?

A On each container that was permitted to move on

a house to house move, yes.

Q And that would be approximately forty to fifty

dollars per container that would go into a special fund

for Longshoremen?

A Not necessarily so. It depends on the tonnage. It

was [228] $1.00 per ton for a container at that time that

was off loaded off of a full container ship, it was a dollar

per ton; it was less on a partial container ship.

39

Q All right. Now, if you will refer to General Coun-

sel’s Exhibit 3 and turn to page 66.

A Okay.

Q Now, in comparing Rule 1 in the ’71 contract on

page 66, is it not the same as the 1968 contract which

you have just testified about?

A It appears to be.

Q And it talks about LTL and consolidated full con-

tainer loads, is that right? ;

Q Yes, it does.

Now, will you turn to the 1974 eement, page

68; and is it not a fact that the rules pl sore ec vase

changed as inserted in the 1974 contrac /

A Yes, there were alterations made.

Q_ And is it not a fact on the containers as you heard

Mr. Houff testify, that he would have been charged with

a stripping violation under Rule 1(a) (3) and 2(b) (2)

of your agreement?

A Say that again.

Q 1(a) (3) and 2(b) (2) would have been the sec-

tions in the ’74-’77 contract which you would have charged

Mr. Houff with violating—excuse me—you would have

charged the U.S. Lines [229] as a result of the stripping

violation?

A Yes.

* * * *

CROSS EXAMINATION

_Q (By Mr. Kelsey) Mr. Billups, I would like to go

into your background and how the phases of the clauses

of the contract which you have ben asked about evolved

into the contracts which are now exhibits in the Court.

First, when did you first go to work on the piers at

Hampton Roads, how many years ago was it?

7) oe years ago.

years ago. Have you done practically eve

of job as a Longshoreman worker in the siete of ‘Hayy

ton Roads in the loading and unloading of ships?

A Everything but operate a container crane.

Q All right. Now, when did you first start serving

on the negotiating team of the ILA which negotiated the

local contracts and local, as it now turns out, container

40

rules [230] with the employers, when did you first start

forming a negotiation team?

A In 1954. ft

And have you served in every negotiation since

1954 to the present time?

A Yes, I have. ste

Q Now, first, I would like to get to what’s just been

asked you; and I will go into the contraci here. You

were asked whether or not on full shippers loads the

ILA stripped full shippers loads on a house to house

status; and I think you stated that the ILA did not.

A Right.

Q Right. Now, when does the container cease to have

the house to house status—or a full shippers load cease

to have the house to house status under the contract—

or when would the ILA be entitled to strip this load?

A When a full shippers load does not go to the bene-

ficial owner or consignee of the cargo at his own installa-

tion and is off-loaded by his own employees, then, it loses

its identity as a full shippers load.

* * * *

[232] Q (By Mr. Kelsey) Mr. Billups, state to us

when the full shippers load loses its status—I think I

asked you this. When it is stripped within the 50-mile

limit, is that correct? Bo

A A full shippers load loses its identity, whether it is

in or out of the 50-mile radius, when it does not go to

the beneficial owner’s installation and is off-loaded by its

own employees. :

Q All right. Now, at this point, does the ILA have

the right under the contract and under your agreement

with the employers there, to do this stripping of this

container—that’s if you’ve got it?

A Any other containers, other than the one just out-

lined by me, must be stripped at the pier.

Q Allright. So—

A And, of course, in the ’74 contract under the Dub-

lin rules, if a consignee desires his cargo to be stored in

a public warehouse under the 30-day warehousing clause,

41

then, that container is permitted to move to the public

warehouse to be stripped. :

Q All right. Now, to your knowledge, do you know

of any instance in which the ILA has believed that the

employer has known in advance that the trucker would

strip a load which was supposed to go house to house to

the beneficial owner, do you know of any instances?

A We have no way to prove that he knows.

* * * *

REDIRECT EXAMINATION

[233] Q (By Mr. Rosenstein) Mr. Billups, if full

shippers load was destined to a point 450 miles from

Norfolk and if it is taken to a point 350 miles away

and stripped by the trucker, do you consider that a viola-

tion of your contract?

A It’s a violation of the clause in the contract that

exempts the stripping of the container at the pier, because

it no longer qualifies as a full shippers load, because it

was short-cut prior to its going to its bona fide beneficial

[234] owner’s installation and off-loaded by his own

employees.

Q Doesn’t your contract talk in terms of evasion,

going to a non-CONASA port beyond the 50-mile radius?

A Well, the contract stipulates that if, for the purpose

of evading the 50-mile rule, that it could be extended be-

yond that point.

Q And you take the position that you could extend

on far as 449 miles, if the manifested destination was

A We consider that the contract deals with a house

to house container going and consigned to a consignee or

beneficial owner, wherever it is, and we exempt it on

those terms. Any deviations from that principle, it be-

comes a stripper.

Q And your contract you’re speaking is between the

shipper, such as U.S. Lines, and ILA?

A Yes.

Q You have no contract with the broker, you have

no contract with the motor transport carrier?

A No.

42

[235] OTIS LANDIS

was called as a witness and, having been first duly sworn,

was examined and testified as follows:

* = * *

DIRECT EXAMINATION

Q (By Mr. Rosenstein) Mr. Landis, would you give

your name and address for the record, please?

5718 Bartee Street, Norfolk, Virginia.

Where are you employed?

Teamsters Local Union 822.

And so you hold a position in that organization?

Secretary-treasurer.

And how long have you held that position?

Approximately two years.

Prior to holding that position, what type of em-

ployment were you involved in?

A Truck driver. _

Q And for whom did you drive a truck?

A Hemingway Freight Linss, Hennis Freight Lines,

Preston Trucking Company; quite a few.

[236] Q Are these truck lines in and around the

Norfolk area?

A Yes.

Q And for how many years prior to 1973 did you

drive a truck?

A Since 1960 in the Norfolk area.

Q@ Now, does Local 822 represent employees of the

Tidewater Motor Truck Association for collective bargain-

ing purposes?

A Some of them.

Q Could you name some of them—some of the com-

panies that Local 822 represents?

A Hennis, Preston, Associated, Carolina, Hemingway,

Hall’s, Maisland Transport.

And have you represented these employees since

1965 to the present date?

A Since before that.

OPOPoO pop

43

Q Now, do you know what a full shippers load is?

A I think so.

Q Would you describe what such a load is, please?

A Well, it would be normally a full trailer load ship-

ped from one shipper consigned to one consignee.

Q The consignee is the owner of the goods, is that

correct?

A Yes.

Q Now, as a truck driver, have you ever had an oc-

cassion to pick up the full shippers load at the Hampton

Roads pier?

[237] A Yes.

Q Would you describe what procedures you use and

you follow before you pick up the container and then

when you pick it up?

A He would get a pickup order from the dispatcher.

That’s the trucking company’s dispatcher. You would

go to the pier and you would present your pickup order

to someone normally at a checkout station they have

there. They would instruct you where the container is

located and you would proceed there, hook up to it and

take it out, go through the container interchange line

where a interchange agreement is written for the specific

trailer-container. He would then proceed back to the

checkout station to get a pass or any other documents

that go along to get you out the gate.

Q Now, when you pick up these containers at the

pier, was the seal in tact?

A Yes.

Q Do you know whether or not that full shipper load

container had been stripped by deepsea ILA labor?

A I would have no way of knowing that.

Q What did you do after you picked up the container?

A Normally, you would take it back to your terminal

—your company’s terminal.

Q And are those terminals located within a 50-mile

radius from the pier area, most of them?

[238] A The ones we represent are, yes.

Q Now, have you ever observed containers being strip-

ped at motor transport carriers that contained full shi

pers loads? iid

ee BOT PO chen ee Rede Vata ee Ea ee

44

A Well, I have observed containers being stripped.

As far as whether it was a full load or not, I really

couldn’t tell you.

Q Do you know or have knowledge whether Teamster

employees of the aforementioned companies you have

described when the need arises have stripped full shipper

load containers?

A Yes.

Q Allright. And they would be stripped where?

A If the trucking strips, it is done at his terminal.

Q Now, will you tell me the reasons that a trucker,

when the need arises, would strip a full shippers load by

Teamster employees?

A Well, there would be numerous reasons. One of

them would be—It’s primarily 20-footers, which they are

a very cumbersome trailer for a freight company to try

to operate with. They are small. And I think there was

some testimony before about the bridge law as opposed

to weight limits. You can take two 20-footers. If both

of them would have, say, in excess of 45,000 pounds be-

tween the two of them, you can consolidate them into one

trailer, one 40-or 45-footer freight trailer and take it

where it’s going, deliver it. Then, [239] you’ve got a

trailer there and they can reload back.

Q Okay. Are there any other reasons that motor

transport carriers would strip a container?

A Well, from my experience as a driver and as a

business agent, now, in getting complaints from the

drivers about containers, they tell me that they are hard

to pull, they handle bad, the tires may not be maintained

at what they think are proper standards, they have a lot

of light problems with them.

And on the 20-footers, with the twin-screw tractor,

the three-axle tractor, you do have the problem of the

rear tires getting into the landing gear and the chassis

frames.

Q Would you explain that?

A Well, when the tractor turns, the trailer—the land-

ing gear, the stand that it stands on when it’s not being

pulled, these are right up against the back of the tractor:

and when you turn, they dig into the tires,

45

How long have Teamster employees been stripping

full shipper loads at the employer members of Tidewater?

AI have seen containers stripped and loaded in and

out of Norfolk since they have been running containers.

Q Do you recall the approximate year when that

first started?

A Oh, some of them were pulling them in the middle-

60s.

Q Now, is there any way, to your knowledge, that a

[240] consignee can require a 20-foot container to go in

tact to the manifested destination?

A Where the consignee would require it?

Q Consignee, broker—

A Shipper or whatever?

Q Right.

A The only thing I could come up with right off

would be on an exclusive use basis.

Q What’s exclusive use mean?

A That’s where the shipper or the receiver, one or

the other—Whoever is paying the freight.—pays a

premium for—he gets exclusive use of the trailer. Ex-

actly what it says. c i 2 é

[241] Q Do Teamsters consider the work of stripping

a full shipper load at their motor transport carrier fa-

cility as their work?

A At the motor carrier terminal?

Q Yes.

A I most certainly do.

[246] ARTHUR BAKER

was called as a witness and, having been first duly sworn,

was examined and testified as follows:

* _s . *

46

DIRECT EXAMINATION

* * & *

[254] Q (By Mr. Rosenstein) I show you General

Counsel’s Exhibit 34 and ask you to turn to page three,

with respect to exclusive possession and responsibility.

Could you explain what that [255] means, please?

A Well, this is one of the provisions mandated by the

Interstate Commerce Commission which indicates that the

exclusive possession and responsibility of the equipment

rests with the using carrier, that he has exclusive pos-

session control and use of equipment until he completes

his responsibility, which is to return the equipment.

Q When you speak of carrier, what do you mean?

A Well, this is a carrier under the definition of—or

under the control or jurisdiction of the Interstate Com-

merce Commission.

Q A motor transport carrier?

A This could be a motor transport carrier. It could

possibly be a railroad or any domestic water carrier, if

it’s under the jurisdiction of the ICC.

* * * *

[256] Q (By Mr. Rosenstein) I show you what has

been marked as General Counsel’s Exhibit 36 and ask

you if you can identify that document.

A Yes, I can. That’s the uniform intermodal inter-

change agreement.

Q All right. What is the uniform intermodal inter-

change agreement?

A The uniform intermodal interchange agreement is

a direct result of a task force composed of motor carrier

members, water, steamship carrier members and railroad

representatives who got together under the auspices of the

Department of Transportation and the Equipment In¢er-

change Association under [257] a business review letter

granted by the Department of Justice to allow them to

collectively sit down and hammer out a set of interchange

agreements that would be applicable between the inter-

modal carriers; that is, water carriers, railroads and

AT

motor carriers. This was accomplished in 1972, result-

ing in the UIIA agreement.

r I show you what has been marked as General Coun-

sel’s Exhibit 37 and ask you if you can identify that,

please.

A Yes, I can. That is a list of the signatories that

are parties to the uniform intermodal interchange

agreement.

Q Now, I refer you to page 22 of that document. And

I ask you whether or not United States Lines is a

signatory to this agreement.

A Yes, they are a signatory.

Q And what was the date that they became a signa-

tory to this agreement?

A They executed the agreement June 28, 1973.

"13?

A 1978, right. c

And I refer you to page 11 of General Counsel’s

Exhibit 37 and ask you whether Houff Transfer is a

party to that agreement.

A Houff Transfer is a party. They signed the agree-

ment March 25, 1974.

Q Now, in General Counsel’s Exhibit 36, I direct you

to [258] page 5 of that agreement and ask you to look

under the section, Use of Equipment. Now, with respect

to four point one (a), what is that?

* * e *

[261] Q (By Mr. Rosenstein) Now, what does Gen-

eral Counsel’s 36 specifically provide for?

A It provides for the carrier named below owning or

operating equipment for intermodal interchange service

agrees joint and severally with each and all other car-

rier subscribers executing a counterpart of the agree-

ment to be bound by the provisions of this agreement and

subsequent amendments or [262] revisions thereof gov-

erning the interchange and use of, repairs to and settle-

ment for the equipment used in intermodal interchange

service when interchanging equipment with other car-

rier subscribers.

48

Q Now, is U.S. Lines a subscriber to General Coun-

sel’s 36?

A They are; they are a party.

* * * *

VOIR DIRE EXAMINATION

[265] (By Mr. Rosenstein) From your own knowledge,

Mr. Baker, is General Counsel’s 36 a copy of the agree-

ment that has been signed by the subscribers contained

in General Counsel’s Exhibit 37?

A It is the exact agreement. We are the issuing agent

for the UIIA, Equipment Interchange Association. We

forward that agreement to all signatories.

Q I direct your attention to page five and ask you to

refer to four point one (a) and tell me what that means.

A Four point one (a) is a standard provision we

have used in the motor carrier interchange industry; and

this is also the provision that was agreed upon by the

water carrier task force members, railroads and the

motor carriers. And it reads as follows:

“User shall have the right to complete control and

supervision of equipment while in its possession and shall

be responsible for returning the equipment in the same

[266] condition as received. Ordinary wear and tear

accepted.”

Q Do you know what a full shippers load is?

A Yes.

Q When a motor carrier picks up a full shippers load

at the pier area, would that paragraph refer to the use

of equipment?

A In my opinion, it would.

Q Now, does a motor carrier have an agreement to

deliver the cargo in that container?

A Yes, he has a bill of lading.

Q I show you what has been marked in evidence as

General Counsel’s Exhibit 16 and ask you if you can

identify that.

A The uniform straight bill of lading.

Q Now, who is that contract between?

A It’s between the shipper and the consignee, or

receiver.

49

Q And that document prevails at what point?

A It prevails from when the shipment is picked up

until it is delivered.

Q So when the shipment is picked up at the pier area?

A Right.

Q Now, I show you what has been marked as Gen-

eral Counsel’s Exhibit 18 and ask you if you can identify

that.

A That’s a delivery order.

Q Do you know what a delivery order is?

A Yes.

[267] Q And who is that a contract between?

A That’s between the carrier and the consignee.

Q When you say carrier, define what you mean by

carrier.

A Well, either a motor carrier or a steamship line

or railroad.

Q Is there anything on that document which pre-

cludes a motor transport carrier from stripping a

container?

A No.

* * * *

CROSS EXAMINATION

[276] Q (By Mr. Gleason) We have the same op-

eration with U.S. Lines with a container that they

dropped, say, in California and one of your members

picks it up to deliver it across country to Norfolk, Vir-

ginia. Under this agreement, does that motor carrier

have the right to take that cargo out of that container

and put it in his own truck for delivery—

A Sure.

Q —to Norfolk.

A What’s to prevent him? The bill of lading is from

the West Coast to Norfolk, but—

JUDGE WAGMAN: The answer is yes, right?

THE WITNESS: Yes.

Q (By Mr. Gleason) Is there anything in the agree-

ment that specifically says that you have that right?

A There’s nothing that says you don’t, either.

Q So it’s neither way. It doesn’t say you can; it

doesn’t say you can’t.

A Right.

ELI A, eS TEE NTT EO OMIT NTL CN A ORT Ae Eee er ee RTE NET NI

50

Q Now, isn’t it a fact that these agreements really

are set up for the purpose of finding who is responsible

for damages does to the containers in movement and the

cost of per diem rates on the containers after the free

period, isn’t that the main purpose?

A They outline user responsibility and per diem

charges.

[277] Q But it-has nothing to do with the handling of

cargo—

A Basically not.

* * * *

RECROSS EXAMINATION

[289] Q (By Mr. Rosenstein) What is the position

of your organization with respect to the right of motor

transport carriers to strip full shippers loads once the

container leaves the pier area?

A Well, we consider it to be within the purview of the

motor carrier, to handle that shipment to his economic

satisfaction, or to his economic interest.

If it requires stripping, then, he can strip it.

And there are no documents which you are bound

by, that being the delivery order, the bill of lading or the

equipment interchange agreement, the UIIA, which pre-

cludes the motor transport carrier from stripping a full

shippers load at his facility?

‘' A None whatsoever.

* * fe *

[291] JOHN EVERETT

was called as a witness and, having been first duly sworn,

was examined and testified as follows:

* * * *

[292] DIRECT EXAMINATION

Q (By Mr. Rosenstein) Mr. Everett, could you state

your name and address for the record, please?

A 4244 Greenleaf Drive, Chesapeake, Virginia.

Q And where are you employed, sir?

A Everett Express, Incorporated.

51

Q And in what capacity do you serve with that com-

pany?

A President and general manager.

Q And is your corporation a member of the Tide-

water Motor Truck Association?

A Yes, sir.

Q Now, can you tell me when containers first appeared

in the Norfolk area?

A I believe it was around 1965. Maybe some before;

but I believe it was around ’65.

* * * *

[293] Q Tell me how you would be selected to pick up

a full container load.

A Well, we would be contacted by a customer who

would give us instructions that he would have a load or,

if it is containers we are speaking of or whatever, have

his broker to contact us and give us the necessary docu-

ments for us to pick it up with.

Q All right. Now, what type of documents are you

referring to?

A The delivery order.

Q All right. I show you—

A Bill of lading.

Q All right. I show you what has been introduced

into evidence as Genera! Counsel’s Exhibit 18, and I ask

you if you can identify .hat that is.

A This is a delivery order.

Q Is that the same type of delivery order that Everett

Express would use?

A Yes.

Q Now, what does that delivery order provide for

specifically?

A The primary purpose of the delivery order is to

give the carrier authority to go to the shipper and pick up

the [294] freight.

Q So when you say the carrier, are you referring to

Everett Express?

A Well, Everett Express, if he is the carrier, yes.

Q And you go down to the pier and what do you do

with the delivery order?

SO NR Omg rer NENTS NTE ee SS ANS eS eT esa TP EST eT

52

A The delivery order, you give it to whoever is in

charge of releasing the shipment to you.

Q Would a shipper be, for instance, U. S. Lines?

A It’s possible.

And you would then deliver that delivery order to

the shipper, is that correct?

A Yes, sir.

Q All right. And then, what would happen?

A Well, he would in turn turn the shipment over to

us.

Q When he turns the shipment over to you, is the

trailer in tact—or is the container in tact?

A If it is a container, yes, sir, it is in tact; and, of

course, we have to go through an inspection line and in-

spect it, check it over whether it’s road-worthy or what-

ever and anything that might be wrong with it, have it

corrected right then.

Q And this would be with respect to a full shippers

load, is that correct?

A Yes, sir.

[295] Q Now, you mentioned a bill of lading. I show

you Exhibit 16—General Counsel’s Exhibit 16 and ask you

if that’s the uniform bill of lading.

A Yes, sir, this is the bill of lading.

Q All right. Now, what contractual relationship is

involved in the bill of lading, what parties?

A Well, the bill of lading primarily covers the ship-

per—between the shipper and the carrier.

Q Okay. Now, when you say shipper and carrier, who

do you mean?

A When I say carrier, I’m speaking of a truck line or

a railroad or Everett Express if he’s the principle or the

consignee whoever the shipment is going to or consigned

to.

Q Assuming you pick up a full shippers load at the

pier area, what do you do with it, then?

A Well, of course, from there it is brought to our term-

inal and billed and from there it is sent out for delivery.

Q Now, have there been occasions when you have for

your own convenience opened up a container?

A Yes, sir.

53

Q All right. For what reasons would you open up a

container?

A Well, it could be several reasons. The carrier has

the right to inspect any load, so we might want to inspect

it.

Q And why would you do that? :

[296] A Well, if we have any doubt at all that there

might be something wrong with the shipment, or it might

not be properly—It might say that this is a load of coffee

and it could have rice in the trailer. Of course, this would

determine your rate; the rate is determined or classified

on different items. A lot of times and mainly, if we have

a trailer or a container, for example, and we have—Well,

let’s use Wilson, North Carolina, as an example. If this

load is going into the area of Wilson, North Carolina,

and we had a load down there to come back say on an-

other steamship company container and we had to take

this container and empty it and then load it, this is not

profitable for us. If we took the loaded one down there

and bring it back empty, that’s still not profitable. So

we would transfer the load maybe from one container to

another in order to do good business, in other words.

Q Now, what size normally are the full shipper load

containers that you pick up at the pier area?

A Well, the size of the container?

Q Yes.

A We have some 20’s and some 40’s.

Q What size container would you transfer the con-

tents into?

A Well, primarily the 20’s.

Q What size would you transfer it into of your own

equipment?

[297] A Well, it could go into a 40-foot trailer or 45

or whatever. »

Q Now, have you ever had an occasion to call a con-

signee who owns the goods?

A Yes, sir, I’ve done this quite often.

Q Now, why would you call the consignee who owns

the goods?

54

A Well, we believe it’s a good policy to ask the cus-

tomer, even though they are getting the container which

is supposed to be a house to house movement, because

sometimes a customer may not want it to come through

house to house. So we will call him and ask him if he

minds if we transfer his load; and we have never had one

refuse us, yet?

Q Now, you said that containers started in the Nor-

folk area in 1965, is that correct?

A I would say roughly about that time, yes.

Q Now, between 1965 and the present date, has

Everett Express operated with respect to full shippers

loads in any different manner?

A No, sir.

Q So when the need arises you strip that container at

your facility?

A Yes, sir.

* * * *

[299] Q (By Mr. Rosenstein) Do you understand the

cuestion?

A Yes. You asked, I believe, did this say anything

on here at all or shows anything on here at all that I can-

not strip a container.

Q That’s correct. -

A No, sir, it does not.

Q I refer you to the bill of lading, and I ask you

whether there is anything in the bill of lading which pro-

hibits you from stripping a full shipper load container

at your facility.

A No, sir, it does not.

* * * *

CROSS EXAMINATION

[300] Q (By Mr. Lambos) Mr. Everett, when was

the last time you handled a U. S. Lines container?

A This morning.

Q Could you tell us what the terms of that arrange-

ment were?

A What do you mean, you mean—

Well, don’t you have an agreement with U. S. Lines?

[301] A Oh, yes. I’d go pick up the trailer, check it

out and bring it to my terminal and I would take it to

my customer. ,

55

Q And the normal relationship is for you to pick

up a container from U. S. Lines and take it right to the

customer?

A Well, yes, if the customer is going to load it out,

that’s true or is going to off-load it.

Q And you have an agreement, other than that uni-

form intermodal agreement, which is General Counsel’s

Exhibit 36 with U. S. Lines, which provides for compen-

oo to U. S. Lines for the use of their container, don’t

you

‘ A Yes, sir, we have a contract proposal on the per

iem.

* * * *

[304] Q (By Mr. Lambos) Do you consider yourself

fully bound by this uniform intermodal interchange agree-

ment? See

A Yes, sir.

Q And do you carry out the terms of that agreement

with respect to all containers that you receive?

A I try to. I mean, as near as I know how, I mean,

what I’m supposed to do.

Q And if you were to go to the pier and see an over-

weight or overladen container at the U. S. Lines pier,

what would you do at that point?

A If it was caught, if my driver knew about it before

he left there, I would never leave the terminal with it.

Q You would expect that the ILA at the terminal

pis unload that container and render it safe, would you

not?

A No, sir, I wouldn’t expect—I wouldn’t care who did

it. I would go to U. S. Lines and say, “You will have

to take this weight off,” and it would be up to them to do

what they want to about it.

Q And if U. S. Lines employed ILA employees at

that facility, it would be the ILA employees who would

take care of it—the U. S. Lines’ employees?

A I would say it would be up to U. S. Lines; what-

ever they choose to do would be up to them.

* * * *

;

56

RECROSS EXAMINATION

[307] Q (By Mr. Gleason) Mr. Everett, you had

stated some cases where these containers came to your

terminal and that you had stripped these shippers loads

and put them on your trucks to move them.

A Yes, sir.

Q Did you ever notify the steamship company that you

were doing this?

A No, sir.

[311] EDWARD G. BOCHERT

was called as a witness and, having been first duly sworn,

was examined and testified as follows:

* * * *

DIRECT EXAMINATION

Q (By Mr. Rosenstein) Mr. Bochert, would you state

you address for the record, please?

A Yes, 5705 Chippewa Road, Virginia Beach, Vir-

ginia.

And where are you employed, sir?

Associated Transport, Virginia Beach, Virginia.

And in what capacity?

I’m the manager.

And how long have you served in that capacity?

A little over three years.

1972?

Yes.

Now, would you explain briefly the business of As-

sociated Transport, please?

A Yes, sir, we are Class A common motor carrier

of cargo, freight engaged in interstate commerce. And

intrastate commerce, also.

Q Now, how many employees do you have at your

Virginia [312] Beach facility?

A At this time, approximately 50.

Q Now, are those broken down into various classifica-

tions?

A Yes, they are.

OPOPO Po PO

57

Q Would you tell us the types of employees that you

have?

A Well, I have approximately 30 what we classify as

truck drivers, 11 platform workers and the rest being

clerical, supervision and sales.

Q Are you drivers represented for collective bargain-

ing purposes by a labor organization?

A Yes, they are,

Q And that is what, sir?

A The Teamsters.

Q You indicated that you ship in interstate commerce,

is that correct? :

A Yes.

Q What is the average distance of your moves from

the Virginia Beach facility?

A Our average length of haul from Virginia Beach is

about 450 miles.

Q Now, could you give us the distances of the As-

sociated terminal at Virginia Beach to the various port

areas where you would pick up containers or cargo?

A Yes, we are about seven or eight miles from the

maritime terminals in Norfolk, about that same distance

from [313] the Lambert’s Point docks in Norfolk, maybe

seven or eight miles from the Portsmouth Marine Term-

inals in Portsmouth, Virginia, and about 20 to 25 miles

from the piers in Newport News, Virginia.

Q Mr. Bochert, would you describe what a full ship-

pers load is?

A Yes, sir, it’s a truckload freight on a trailer con-

signed to one consignee and one shipper.

Q Now, has Associated ever had occasions to pick up

full shipper loads at the Hampton Roads pier area?

A Wecertainly have.

Q Will you describe the procedures Associated follows

in order to pick up a container?

A Yes, sir. We are issued a delivery order or bill of

lading from a broker either in the town of Norfolk or

from an outside source through the mail. Upon receiving

this, we note on the delivery order that we, of course, have

been specified by a shipper, consignee, as the carrier to

transport the goods from Norfolk to wherever. The de-

58

livery order also spells out where the container in this

case is at and at which pier, as I mentioned before.

We check with the pier offices down at the particular

pier, say, for instance at the Maritime Terminal, ask-

ing the responsible party down at the pier office, is con-

tainer such-and-such released for shipment. If we are

advised that [314] this has happened, we send the local

driver with a local tractor to the pier area with his de-

livery order. He then, in turn, reports to the particular

party involved, at whatever steamship line it may be,

shows the document proving that we are the carrier of

record. There he is instructed the proximity at the term-

inal where he can find this container. He then gev2s look-

ing for the container.

Upon finding the container by number, he is checking

the number or for the number, he takes it through the

steamship’s checkout line that they have, where the

trailer is checked for DOT and ICC compliance for lights,

tires and what-have-you.

Q Would you explain DOT? What does that mean?

A Department of Transportation which, of course,

governs Associated Transport and all the other carriers as

to rules and regulations of the highway and all phases

of transportation, dangerous cargoes and what-have-you.

Q And the ICC is what?

A The Interstate Commerce Commission.

Q Allright. Would you continue, please?

A Yes. Once this is accomplished and the container

is checked by eyesight by my driver as well as the person

at the pier responsible, U. S. Lines personnel or what-

ever, it is then placed off to the side. The driver goes in

and signs an equijment interchange, where Associated

Transport signs for [815] this container and has accepted

the responsibility of the container, and this interchange

agreement between, say in this case or my case, U. §

Lines with Associated.

He then obtains a pass to exit the premises, the pier or

whatever, the terminal area; and he brings the trailer

back to my terminal.

59

Q Now, you mentioned a delivery order. I show you

General Counsel’s Exhibit 18 and ask you if that is the

delivery order.

A Yes, air, it is.

Q Now, what does the delivery order specifically cover

for you to obtain?

A Well, the delivery order would cover the letter, as

I refer to it, specifying, like I said, us as the carrier. The

consignee’s name would appear on this. A lot of times in

a lot of cases, who is responsible for the charges that we

will be billing for the movement of this particular freight.

Q Could you speak up a little louder, please?

A Yes, sir.

Do you want me to repeat that?

Q No, that’s all right. On the delivery order, does

that enable you to pick up the cargo itself?

A Yes, it does. aS

Q Now, I refer you to General Counsel’s Exhibit 16

and ask you what that is.

A This is a uniform straight bill of lading.

[316] Q All right. Now, what parties would be sub-

ject to the uniform straight bill of lading?

A The shipper, the consignee and the motor carrier.

Q Now, when you are talking about the shipper, who

do you mean?

A The party that originates the shipment.

Q That would not be U.S. Lines?

A No, sir.

Q And the motor transport carrier is Associated?

A Right.

Q And the consignee is the beneficial owner of the

goods?

A That’s right.

Q Now, I show you what has been identified as

General Counsel’s Exhibit 44, and I ask you if you can

identify that document.

A Yes, sir, this is or was the existing contract between

United States Lines and Associated Transport.

Q All right. Now, what type of contract?

A An equipment interchange contract.

60

Q All right. Now, what was the date that that agree-

ment was negotiated?

A May 6, 1969.

Q All right. Now, what does the equipment inter-

change agreement provide?

A It’s a contract between the steamship line and the

motor [317] carrier to interchange equipment.

Q Did you have any other agreements with respect

to the interchange of equipment with U. S. Lines in

existence in March of 1969?

A Not to my knowledge, no.

Q You arrived in 1973, is that correct?

A 72.

Q Do you know of any other agreement that you

utilized to exchange equipment with U. S. Lines, other

than that document?

A No, sir.

MR. ROSENSTEIN: I move to introduce General

Counsel’s Exhibit 44.

JUDGE WAGMAN: Any voir dire or objection.

MR. LAMBOS: No, in the meantime, I have had an

oportunity to examine the document. I have no voir dire,

and I have no objections.

JUDGE WAGMAN: I take it nobody else objects?

Genera! Counsel’s Exhibit 44 is received in evidence.

Q (By Mr. Rosenstein) Now, I direct your attention

to September 24, 1974, and ask you whether you picked

up any containers on that date.

A Yes, sir, I did.

Q All right. Tell me whose containers you picked up

and what you did.

[318] A _ I picked up eight containers either owned or

leased to the United States Lines. I picked them all up at

the Maritime Terminals in Norfolk, Virginia, all at one

time. It was eight containers involved. We dispatched

two local drivers to handle the eight containers down to

the pier, and they followed the procedure that I outlined

before and brought all eight of them back to my terminal

at Virginia Beach.

ee Re ee ee ee ER eNO en aR

61

What type of containers were these?

A Well, they were a mixture of 20-foot and 40-foot

containers.

Q What type of loads did they contan?

A All shipper loads.

Now, what did you do with the combination of the

20- and 40-footers when you brought them back to your

facility?

A Well, we had the bill of lading; and I determined

that, in each instance, these were cartons of velvet,

roughly 12,00 pounds to a 20-foot container. And, at this

time, I had empty equipment of my own sitting in my

yard doing nothing. Well, I made up my mind to say, strip

two 20-foot containers and put them in one of my 45-

foot trailers. Two more was done the same way, but with

a combination of a 40-foot and a 20-foot we put in one of

my 45-foot trailers.

Q Where was the manifesed destination for these

containers?

A AsI recall, five were in North Carolina and three

were [319] in Tennessee.

And these were all destined to a point more than

50 miles from the port area?

A That’s correct.

Q Now, you said that you made a determination based

on the bill of lading to strip the containers. What entered

into your determination to strip the containers?

A Well, for one, the merchandise was that of such

that it would not be easily damaged, it wouldn’t be pil-

fered, and also they were large cartons, bulky cartons. but

very light cartons, though.

And, of course, the economics of the whole thing with

my own equipment sitting in my yard, why take on leased

equipment.

Q Well, is there a charge you would have to pay on the

leased equipment?

A Yes, sir, there is.

Q How does that work, and who do you pay the

charge to?

A It is per diem charges that we pay to United States

Lines for lease of their equipment while in our possession.

62

Q Doyou recall any other reasons that you determined

to strip the eight containers in question?

A AsJI recall, one of them was overloaded. We then,

of course, instead of going to the broker saying we have

a problem, we have an overloaded container, we would

have to take it to [820] the pier and whatever, I just

adjusted the load on my own equipment, the difference

being the containers are much heavier than our own

trailers.

Q Do you ever contact the consignee prior to stripping

the containers?

A No, sir.

Q Does the broker require you to contact the con-

signee?

A No, sir.

Q Is there any restriction in the bill of lading which

precludes you from stripping a full shippers load at your

facility?

A No, there is not.

Q Is there any restriction in the delivery order which

precludes you from stripping a shippers load at your fa-

cility?

A No, sir.

Q Referring to your equipment interchange agreement

that was in existence in September of ’74, was there any

restriction that precluded you from stripping full shippers

loads at your facility contained in that document?

A No, sir.

Q Now, is there any way in which a consignee could

require that the 20-foot container remain in tact and be

delivered as a 20-foot container?

A Yes, there is.

Q And what is that?

[321] A That’s by requesting exclusive use of the

vehicle.

Q Now, what does that mean?

A Well, that means that the said container will move

in tact as it arrived this country to the destination.

63

Q Was exclusive use of equipment requested on the

eight containers that were picked up from U.S. Lines on

September 24, 1974?

A No, sir, there was not.

ad * * *

All right. I have been tendered this container. I know

that I am only getting $400.00 revenue out of it; but,

physically and economically, if I decide to strip this con-

tainer, I’m spending the labor to do it, why make a

[322] shipper or a consignee do that? They are good

enough to give me the freight, so why should I say I want

the trailer stripped at the pier and cause friction or

whatever. There’s too many carriers around me. We

don’t need Associated, if they want to run down to the

pier and have their containers stripped all the time. So

I eat these additional costs. However, when I do strip

we make up for it in line haul, diesel fuel and many

other aspects.

[826] Q Did there come a time when you received cor-

respondence with respect to your equipment interchange

agreement?

A Yes, there was.

Q I show you General Counsel’s Exhibit 42 and 43

and ask you if that is that correspondence.

A Yes, sir.

Q What happened with respect to your equipment in-

terchange agreement?

A It was cancelled because of the Associated Trans-

port not reimbursing U.S. Lines $8,000.00.

Q So U.S. Lines had paid the $8,000.00 fine to the

joint fund, is that correct?

A Uh-huh.

* * * *

* * * *

[827] Q Now, after the cancellation of your inter-

change agreement on March 20, 1975, did U.S. Lines ever

interfere with your ability to pick up full shipper loads?

A Yes, they did. We received a call—at least Mr.

Bryant, the assistant terminal manager at Associated

Press did—from a gentleman named Mr. Quigley work-

64

ing with J.P. Stevens in New York. Mr. Quigley in-

formed Mr. Bryant of a booking number for us to pick

up two U.S. Lines empty containers to transport to some-

where in North Carolina to pick up loads for export to

come back over the Norfolk port.

Mr. Bryant hung up from Mr. Quigley and called up

U.S. Lines and said, “I’ve got this booking number. When

can I pick these two empty containers up?” And I be-

lieve the gentleman’s name was Edwards. I’m not sure.

But Mr. Edwards [328] told Mr. Bryant, he said, “I

will have to check with the New York office and call you

back.” And about 45 minutes elapsed and this phone

call did come in, and Mr. Bryant was informed we

couldn’t handle the containers if we didn’t have a con-

tract with U.S. Lines any more. This was Mr. Quigley.

* * * *

Q Now, from the cancellation of your interchange

agreement on March 20, 1975, have you been able to

pick up containers of full shippers loads at the pier in

the Norfolk area?

A Yowu’re speaking of other containers?

Q No, of U.S. Lines containers.

[329] A No, sir.

* * * *

Q (By Mr. Rosenstein) Mr. Bochert, you testified

that you commenced operations as manager in 1972.

Starting in 1972, did you follow the same procedures with

picking up full shippers loads as you have described in

your testimony?

A Yes, sir.

Q In 1973, did you do it the same way?

A Yes, sir.

Q And in 1974, did you do it the same way?

A Idid.

Q And in 1975 with other shipping lines besides U.S.

Lines, would you also follow that practice?

A Yes, sir.

* s a *

65

CROSS EXAMINATION

[343] Let me put it this way: When was the first

time that you learned that the ILA took the position that

if a shippers load destined for a consignee’s place of

business were short-stopped at a trucker’s terminal and

there the container was stripped into a motor carrier’s

equipment, that the ILA considered that this was a

violation of the steamship carrier’s obligations to the ILA

under their contract, when did you first learn of that

fact?

A That exact fact would be at the first—at the in-

junction hearing, I think. That exact fact.

Q That exact fact.

A Yes.

Q Now, let’s take the general knowledge on this

subject, when did you first have it?

A I have heard of the 50-mile radius, if that’s what

you are speaking of. I’ve known about that for ten or

eleven years, that they had a 50-mile clause or something

of this nature. I don’t know.

Q@ And ten or eleven years would take us back to the

middle or mid-’60s?

A Right.

Q And the 50-mile clause—or so-called—has been well-

known in the trucking industry since the mid-’60s, hasn’t

it?

A It has, I guess, yes; uh-huh.

* * * *

REDIRECT EXAMINATION

[368] Q (By Mr. Rosenstein) I show you Respond-

ents’ 3, Mr. Everett, and ask you to refer to 4, sub-

paragraph (e), and I ask you what does that mean.

A Couid I have a moment to read it?

Q Please.

A This means that the carrier or the principle, if you

want to use Everett Express for the moment, if we abide

by this, between United States Lines and Everett Ex-

press has full control over these containers when they

checked them out from their facilities; they also have

a control over any persons or anyone have to do with

em.

66

And if I may, I would like to read it. Maybe it would

be more understandable if I could read it.

* * * *

[871] Q Have you operated in your business insofar

and having particular reference to the stripping of

containers?

And I’m also talking about the period of time from

1965 to the present, substantially in a similar manner

with regard to the containers with each of these

companies?

A Yes, sir.

Q And does that involve, on your part, the stripping

of the containers whenever it appears to be in your com-

pany’s best economic advantage?

A That is the only reason for stripping one.

* * * *

[875] Q (By Mr. Auten) Mr. Everett, right up to

and including the date of this hearing, has anybody with

U.S. Lines or with any other shipping company ever said

to you that they thought their interchange agreement

with you compelled you not to strip any container?

A No, sir.

Q They have never said that any interchange agree-

ment forbade you from stripping a container?

A No, sir.

* a * *

[878] Q And isn’t the purpose of that interchange

agreement to find out whether damage is done to the

equipment and who is responsible for the damage to the

equipment?

A Well, that’s partly, yes.

Q But isn’t that the main thing? If there is no cargo

in the container—

A No, sir; no, sir. There’s some part of it is to give

you the possession of it.

Q Possession of the container?

A Certainly.

Q But not of the cargo?

A No, sir. No one has control of the cargo but the

carrier that has it in his possession.

67

Well, isn’t it a fact that the delivery order and

the bill of lading is actually what controls the cargo?

A Yes, sir. And the bill of lading, if I may add,

never comes from U.S. Lines. It comes from the customer.

Q Allright. Thank you.

* * * *

[379] ROBERT W. McCLESKEY

was called as a witness and, having been first duly

sworn, was examined and testified as follows:

* * * *

DIRECT EXAMINATION

* * * *

[880] A A full shippers load would be a load loaded

by one shipper going to one consignee that would fill a

trailer either cube-wise or weight-wise.

Q Has Carolina Freight ever had an occasion to pick

up a full shippers load at the Hampton Roads pier area?

A Yes, sir.

Q Would you describe how you go about picking up

a full shippers load?

A Well, we receive a bill of lading, delivery order

usually from a broker in most cases and give the delivery

order to a driver who takes it to the pier. You see the

proper people in the office down there. They tell you

where the container is and the driver goes and finds it

and hooks up to it. He will make a preliminary check,

pull it through the interchange line. If everything is

okay, leave the interchange line, receive a pass on it,

and pull it out the gate.

_Q When you pick up the full shippers load at the

pier, is that container in tact? :

7) Yes,

Has that container, to your knowledge, been stri

ped at the pier by deepsea ILA labor? = —

A Not to my knowledge.

68

[381] Q I show you what has been marked as General

Counsel’s Exhibit 18 and ask you if that is a delivery

order.

A Yes.

Q And is that what you spoke of that a broker gets

to you which enables you to proceed to the pier?

A Normally, the broker does give it to us, yes, Sir.

Q Now, what does the delivery order provide for

specifically, what does it cover?

A Well, it normally tells you, in the case of con-

tainers, what the container number is, where it’s going;

and it gives the people at the pier the knowledge that

you have the authority to haul this container down the

road.

Does it cover the cargo in the container that is

owned by the beneficial owner?

A Normally, it mentions the cargo, yes.

Now, when you get that delivery order, do you call

the beneficial owner-consignee?

A Not normally, no, sir.

Q So do you then pull it from the pier area some

place after you pick it up?

A We always take it to my terminal with a local

driver.

Q Now, I show you General Counsel’s Exhibit 16 and

ask you if that is a bill of lading.

A Yes, sir, that’s a blank bill of lading.

And who is that contract between?

[382] A Well, that contract is between myself, the

shipper and the consignee when I get to the consignee

with it.

Does that cover the cargo while it’s in transporta-

tion to the beneficial owner?

A Yes, sir.

Q Now, from the point that you pulled the full

shippers load away from the pier, where do you go?

A Tomy terminal in Virginia Beach.

Q All right. Is that within a 50-mile radius of the

port area?

A Yes, sir.

69

Q Why do you pull it to your terminal?

A Well, we pull it in there and it has to be—we have

to cut another bill and it has to be manifested, it has to

be hooked to a road truck and given to a road driver.

Q Now, have there been occasions when, for your

own convenience, you have opened that trailer and re-

distributed the cargo?

A Yes, sir.

Q Tell me the purposes that you would do this?

A Normally, there are several reasons. We do it—

The main reason is to cut off per diem and get rid of this

box that we have no use for in our system. Most of the

time, I have my own equipment on the yard empty that

I can utilize. We have occasions when road trucks will

not hook to these [383] units, the same problems that

were mentioned earlier about fifth wheel settings, king

pin settings.

Q Would you go through these and also describe what

you mean when you said the trailer would not hook onto

the equipment that you. pulled from the pier to your

facility.

A Well, we have a number of tractors—In fact, a

majority of our road tractors do not have a sliding fifth

wheel. There are many containers, 40’s and 20’s alike,

that have the king pin which hooks into the fifth wheel

set farther back underneath the trailer than most trailers.

Consequently, when you hook up to it, the frame of your

tractor or the tires of your tractor will hit the landing

gear or the frame of the trailer. Some of them you are

able to pull, but you ruin two tires. Some of them you

are simply not able to pull at all; they will not go. You

cannot make a turn with them in any way.

As far as the others, we would like to strip them on -

occasions to cut off the per diem rate. My trailers, we

have nothing shorter than a 45-foot trailer or road

trailer, nothing shorter than a 13-foot high trailer; and

my smallest trailer is bigger than the biggest container

around.

70

Q Now, you said that you pulled the original con-

tainer from the pier area. Who owns that original

container?

A Normally, the steamship line unless it’s a leased

box.

Now, I direct your attention to June of 1975 and

ask [384] whether anything unusual happened to Caro-

lina Freight.

A Well, probably a lot of things. One that I can think

of, we were—we picked up a container belonging to NYK

Lines.

What type of container was this?

It was a 40-foot container.

Was it a full shippers load container?

It was billed as such, yes.

And what did you do with it?

I stripped it.

You brought it back to your—

I brought it back to my terminal, opened the doors

and stripped it.

Q Why did you strip it?

A On that particular day, we had—if memory serves

me, that container had 26,000 pounds on it. I had two

trailers of my own at my warehouse which had loads for

Rocky Mount, North Carolina, which is a break bulk

terminal. By stripping this container, I loaded both of

my trailers which ended up with 42,000 pounds, approxi-

mately, on them and the container, of course, was empty.

What I accomplished was running two of my trailers

with capacity loads on them as opposed to running those

two with less than capacity loads and the container which

would have been a third vehicle. I saved a trip. And

this is the reason that we stripped it.

Subsequent or after your stripping, were you noti-

fied of [385] any action taken by the International Long-

shoremen’s Association against New York Lines?

A Yes.

Q What was that?

MR. LAMBOS: Excuse me, Mr. Rosenstein. You said

what kind of lines?

POPS pO pO

71

MR. ROSENSTEIN: I thought it was New York

Shipping Lines.

MR. LAMBOS: No, he said NYK.

MR. ROSENSTEIN: Oh, I’m sorry.

Q (By Mr. Rosenstein) NYK Lines.

A That’s correct. We were notified that the ILA had

made the allegation that we had stripped the container

and that NYK would be fined $1,000 if we could not tell

them that it had not been stripped.

Q What is the disposition of that at this time?

A At this time, we have made no comment to them

about whether it was or was not stripped. Consequently,

my interchange with them has been cancelled. I have not

pulled any of their containers and I have had some

available.

[386] Q Mr. McCleskey, at what point did you learn

that the steamship line and the International Longshore-

men’s Association felt that there was a violation of their

contract if a full shippers load was stripped at your

facility?

A Sometime in 1970, the latter part after October

when I came in. Shortly after I came in.

* * * *

[887] Q With respect to the description of the NYK

container that [388] was stripped, is this the procedure

that you have been following as to stripping full shippers

— at your facility when convenience or necessity pre-

vails?

A Well, I don’t strip under those circumstances all

the time, not those exact circumstances; but, when it is

eee better for my company, yes, sir, I strip

them.

Q And how long have you continued to adhere to this

policy?

A Well, I came in October of ’70 to Norfolk; and the

first occasion after that when we had the need and I

felt like it was the best thing to do, we did it; and we

have been doing it ever since.

72

And has anybody from any other shipping lines

since 1970 told you that you could not strip a full ship-

pers load at your facility?

A No, sir.

* * * *

CROSS EXAMINATION

[390] Q You stated that the first knowledge you had

with respect to the requirements of the ILA rules were

about six months to a year ago, and you received such

information from Mr. Merritt. Isn’t it a fact that Mr.

Merritt and you have had conversations about this subject

for a long time prior to this?

A Mr. Merritt and I have had conversations prior to

that point; and I told you or I told the other gentleman

that I knew about it shortly after I came to Norfolk in

1970. I knew about this agreement.

* * * *

[392] M. L. CHADWICK

was called as a witness and, having been first duly sworn,

was examined and testified as follows:

* * * *

DIRECT EXAMINATION

+ * * *

[393] Q All right. Now, what does the delivery order

control, what does it mean to you as a motor transport

carrier?

A It is instructions to the pier or steamship line to

release that cargo to me, the carrier.

Q Now, I show you what has been marked as General

Counsel’s Exhibit 16 and ask you if you can identify that.

[394] A Yes. It’s a bill of lading which is a contract

between the shipper and the carrier. This binds the

carrier for total responsibility of the cargo that he is

handling for this particular shipper until such time he

gets it and delivers it to the consignee.

73

Q All right. Now, do you have equipment inter-

change agreements with steamship carriers in the Hamp-

ton Roads area?

Yes.

Do you have one with U.S. Lines?

Yes.

Do you have one with NYK Lines?

I believe so, yes.

Have you ever had an occasion to personally observe

the equipment interchange agreement?

A Ihave not.

Q What does the equipment interchange agreement

provide for, to your knowledge?

A The exchange of equipment. My interpretation

would simply be that we would be responsible, and we

would check the equipment, the tires, lights and what-

have-you, just the container itself or trailer, and we

would be responsible.

* * * *

[395] Q Have you had an occasion, upon pulling the

container to your facility to strip that container?

A Yes.

Q For what reasons would you strip a full shippers

load at your facility?

A Our reasons would be mostly economical, or eco-

nomics, I’ll say.

Q Would you elaborate as to what you mean by

economics?

A Yes.

If we should go down to the pier and pull back a 20-foot

container that, let’s say, has 12,000 pounds on the con-

tainer, then, of course we certainly are charged per diem

for this. Now, we pull these containers. In other words,

the cargo is destined to such points as Chicago, Mil-

waukee or what-have-you which is seven, eight or nine

hundred miles away. The per diem rate is quite expen-

sive. I think it goes up to as high as seventeen fifty a

day after a certain element of time.

So, consequently, we will strip this cargo off of the

container and put it normally in a 45-foot trailer and

OPO Pp

—

74

[396] consolidate it with twenty or thirty thousand pounds

of freight and move it in that way.

Q Has a beneficial owner-consignee of cargo ever told

you that you should not or could not strip the container

and put the cargo on your own truck?

A No. x . * *

Q Do you recall when containerization came into the

Hampton Roads area?

A I believe ’65 or 66.

From ’65 or ’66 to the present date, have you fol-

lowed the procedure based on your own needs of Hennis

Freight to strip a full shippers load at your facility?

A Yes.

* * * a

[897] Q Maybe I misunderstood you, Mr. Chadwick.

You said you started with Hennis in 1972?

A Yes.

Q Were you working in the motor truck industry

prior to 1972?

Yes.

Was that in the Hampton Roads area?

Yes,

Were you working for another carrier?

Yes.

What carrier was that?

Associated Transport.

To—Were you talking about from ’65 to ’72, then,

what Associated Transport did with respect to full ship-

pers loads?

A So far as stripping them?

Q Yes.

A Yes.

OPO PO POP

* - * *

CROSS EXAMINATION

Q (By Mr. Lambos) Mr. Chadwick, were you with

Associated Transport in 1971 when Associated Transport

reimbursed United States Lines a thousand dollars because

they were caught [398] stripping one of their containers?

A Yes, sir.

75

Q And you mean to sit here and tell us that the first

time you knew about the—Excuse me. Do you mean to

tell us that you are sitting here and saying that no one in

the steamship industry had ever told you that your strip-

ping a container at a trucking station was in violation

of the agreement between the steamship carrier?

A I did not say that. I said since I had been with

Hennis, if you will recall.

Q But you knew this when you worked with As-

sociated Transport?

A That’s correct. I did.

Q In fact, you have been at meetings where the steam-

ship carriers—

You’re right.

—the ILA—

Yes, sir.

—as a representative of Associated?

That’s right.

And you knew that United States Lines had a fine

of a thousand dollars imposed against them?

A That is correct.

Q And Associated Transport reimbursed U.S. Lines

that thousand dollars?

[399] A That’s correct.

* * * *

RECROSS EXAMINATION

[400] Q (By Mr. Lambos) Mr. Chadwick, while you

have been with Hennis Trucking Company, you have

known of any instance where a steamship carrier was

fined because Hennis stripped a container at its trucking

station within the Port of Hampton Roads?

A Whether any carrier has been fined?

Q Yes.

A I believe so, yes, sir.

Q So while you have been with Hennis, you have also

known about the requirements of the rule, haven’t you,

Mr. Chadwick?

A Yes; that’s right.

* * a *

OPO POP

76

[402] ALLIE S. McNEIL

was called as a witness and, having been first duly sworn,

was examined and testified as follows:

* * * *

DIRECT EXAMINATION

* * * *

[406] A The shipper or the shipper’s agent and the

motor carrier. Of course, the sliipper could be the con-

signee in this particular cas®. But they are the parties to

this contract; and it is the sole contract covering the

movement of cargo from origin to destination.

Q Is a steamship carrier, such as U.S. Lines, a party

to that agreement?

A They are not.

* * * ae

[413] A Well, again, the full shipper load is just a

designation used by the shipping industry; and it does

not govern nor pertain to the motor carrier industry. A

full shippers load to a steamship line is not a full load

to a motor carrier. Motor carriers have many different

types of equipment than steamship lines.

And you can take a 20-foot container or a 40-foot

container and take it to a motor carrier’s terminal; and

the motor carriers have 45-foot high cube trailers which

have as much as eight or nine hundred additional cubic

feet or storage space. And those are not necessarily a

full load to a carrier. It might be 2 full load to a steam-

ship line.

Q I show you what has been introduced into evidence

as General Counsel’s Exhibit 5, a lette® dated June 7,

1974, signed by yourself to Mr. Jack Mace. Will you tell

me the circumstances surrounding your writing that

letter?

A This particular letter was a result of a meeting

which was called by a subcommittee of the Hampton

Roads Shipping Association.

17

Who was at that meeting?

A On behalf of the motor carriers, there were two or

three representatives. I was there on behalf of the As-

sociation. Mr. Ned Shallow was there on behalf of the

subcommittee, and Mr. Joe Murphy and Mr. Paul Fox,

T. Parker Host, Jr., was supposedly chairman, I believe,

of that [414] committee but he was not present.

Q Was Mr. Mace there?

A No.

Q Okay. What took place at that meeting?

A At that meeting which, incidentally, I think was

around March of ’74—March or April of 1974, the meet-

ing was called for the purpose to relate to the motor car-

riers and to the Association that the ILA was now con-

tending that they had a right and was going to fine or

strip any container at all if it did not go to the destina-

tion—all the way to the destination.

Q And this was when, Mr. McNeil?

A Around March of 1974.

Q Prior to that date, had anybody from the Hampton

Roads Shipping Association ever informed you as the

president of the Tidewater Motor Truck Association with

respect to the stripping of loads within the 50-mile

radius? Full shippers loads.

A. No, not if they were destined beyond the 50-mile

limit.

* * * *

[416] Q Will you tell me the type of operation that

D. D. Jones is in comparison to Associated, Pilot or

Thurston?

A Well, D. D. Jones is a combination. They are a

motor carrier. In fact, they are the largest motor carrier

in the local area, having some 65 tractors there. In addi-

tion to that, they are the largest warehousing and dis-

tribution company in the local area, having been in busi-

ness for some [417} 40 years.

Q How is the warehouse operation different than an

ng such as Associated, Houff, or Pilot and Thurs-

ton

A Well, the warehousing operation, as I say, is a

distribution company. We are set up mainly to handle

distribution of cargo; and, of course, about 60 percent

78

of that is related to the import cargo which comes across

the piers.

And the operation we perform for a shipper is differ-

ent because we will bring cargo that a shipper so desig-

nates to our facility and we will perform any services.

We actually unload the cargo, we store, we might break

it down and repack it, we prepare documents for shipping.

We are a distribution firm, in that sense of the word,

as far as the warehousing operation is concerned.

Of course, that operation was greatly hindered by the

contract itself, not on any control of our own but beyond

our control.

Q First of all, let’s talk about when did containeriza-

wine your knowledge, come into the Hampton Roads

area

A Well, containers have been in existence—It really

became prevalent about 1965; but there were containers

in the area prior to that.

Q But when did they first become prevalent?

A About 1965.

[418] Q Now, talking only as to the warehouse opera-

tions of D. D. Jones, tell me what D. D. Jones did when

a full shippers load came into the pier area, keeping in

mind that we are talking about bringing it back to the

warehouse. What did you do, what were the procedures

that you followed?

A Let me ask you what time frame.

Q 1965.

A In the 1965 period, we would pick a container up.

We would have instructions or a bill of lading issued to

cover that movement from the pier to the warehouse,

just like an over-the-road ‘movement or longer distance.

You would pick the container up, unload it—take it to

our warehouse, unload it and return the empty unit to the

steamship line.

Q_ In 1965 was that type of container going to your

warehouse stripped by ILA labor?

A No, it was not.

79

Q 1966, tell me the procedure that you followed with

respect to bringing full shippers loads to your warehouse.

A The full shippers load would move in tact to the

warehouse.

Q In1967?

A The same.

Q Were there any changes in 1968?

A Yes. In 1968, there was—we were advised that

there was a new contract that was going to be effective

between [419] the steamship industry and the Longshore-

men’s Association, and that these units no longer would

be able to move to the warehouse facilities within these

50-mile radiuses.

Q Now, how did that change and affect the operation

procedures of D. D. Jones’ picking up a full shippers load

at the pier?

A Well, in a container, we could not pick up a full

shippers load in a container because they would not re-

lease it to us. We had the right to do so and we had

the right to act as the distributor for the shippers, also;

but, because of this contract which knowledge of the

contract had been passed onto the brokers which in turn

had published this to the shippers, although they didn’t

agree to it, they would not allow—the steamship lines

would not turn the containers over to us to come to the

warehouse directly.

Q Tell me what D. D. Jones did when you went to the

warehouse—or to the pier area starting in 1968 to pick

up goods at that time?

A We would send our own trailers to the pier facili-

ties, and our trailers would be loaded and we would dray

it back in our own equipment to the warehouse.

Q What did ILA do as opposed to what they did in

1965 through 1967?

A Well, back in 1968 they were stripping the contain-

ers on the piers.

[420] Q So deepsea ILA labor would strip the con-

tainer at the pier; and then, your trucks would pick it

up and take it back to the warehouse?

A Yes.

80

Q Now, how long did that practice remain in tact?

A For about three years or until this CONASA nego-

tiation took place.

Q Are you referring to the Dublin rules?

A Yes.

Q All right. In 1973, the Dublin rules came into

effect. Now, how did that change the warehouse opera-

tion of D. D. Jones with respect to picking up loads at

the pier area?

A Well, at that time, of course, what they classified as

a full shippers load owned by one consignee, it was agreed

that it could move to a destination within a 50-mile

radius under the sole ownership policy.

Q Now, how did D. D. Jones get affected, did it go to

your warehouse?

A Yes. Okay. Under a full shippers load as desig-

nated, we could pick that container up, take it to our

warehouse and then strip it and then return the empty

unit to the steamship line; but there were many restric-

tions. That was only one classification of goods. That

was just probably a small pecentage really of the total

traffic.

Q Are you talking about import?

[421] A Yes.

Q Is there any other way that it affected the opera-

tion of D. D. Jones?

A Well, it restrained our operations. It affected our

growth, it affected naturally the business aspect of our

company which had been in existence for almost 40 years.

It caused us to lose a lot of accounts. Accounts would no

longer use the area. Instead of using us as a public

service company, they would take the goods to other

facilities of their own or other outlying areas which would

be greater distances from the port area.

Q Now, Mr. McNeil, have you ever seen the 1974 ILA

contract?

A [have seen it.

Q Have you ever read the section that relates to

warehousing?

A Yes.

81

Q I show you what has been introduced as General

Counsel’s Exhibit 4, the 1974 contract, and ask you to

refer to Rule 2(b) (4) on page 70.

A Okay.

Q Is that the procedure you have been describing that

came into effect in 1973 by the Dublin rules?

A Yes.

Q And, therefore, continued in the 1974 contract?

[422] A _ Yes, it did.

Q Now, D. D. Jones, however, are not a party to that

contract, are they?

A No.

Q And you have no contractual relationship with the

International Longshoremen’s Association?

A No.

Q Now, how long has Rule 2(b) (4) been in existence?

rer long have you followed the 30-day warehousing pro-

cedure?

A I believe it was February of 1973. Somewhere in

that time frame.

Q And up to what point? Is it still in effect?

A It’s still in effect except for one period of interrup-

tion.

Q All right. Now, I direct your attention to April 28,

1975, and ask you what happened with respect to the

warehousing rule.

A We were advised by Mr. Jack Mace, personally in

fact, that the ILA was contending that they were going to

try to enforce rules that would supposedly bring all ship-

pers up and down the coastal area in conformance with

their own wishes; and, as a result of that, that Mr. Glea-

son had advised that there was going to be a restriction

against any container moving beyond the port area, that

they were going to strip them all there. And they would

not, during that period of time, [423] allow us to pick

up a container and move it to the warehouse.

Q Was there a suspension on the rules on containers

effective April 28, 1975? .

A Yes.

82

I see. Was the result that occurred similar and

identical to the 1968 to 1973 practice where deepsea ILA

labor stripped containers at the pier area?

A Yes.

Q And then, the motor transport carrier had to go

and pick up those goods at the pier area?

A Yes.

Q Now, approximately how long did the suspension of

the rules remain in effect?

A About 30 days.

Q Would it refresh your recollection if May 30th,

1975, they were reinstated?

A Yes.

Q Now, will you tell me the effects of that suspension

with respect to the operation of D. D. Jones?

A Well, during that period, we had many shipments

which had been destined for our facility to be received

and distributed according to the wishes of the shipper;

and one large shipper, in fact, began diverting traffic and

so did others, saying they refused to use the port area

and also use the facilities of D. D. Jones during that

period of [424] time, causing our company to lose a

whole lot of revenue, on the goods which we would have

handled.

Q Do you recall any other effects as a result of the

cancellation of the rules on containers?

A Any different types of effects? That is the effect.

In other words, you just lose business and you don’t get

the opportunity to handle the goods.

Of course, the effects, you had two different problems.

You had to, again, utilize your own equipment to pick it

up, you had delays involved because you could talk about

a container moving basically within two to three days

from the time it was discharged; but now that the con-

tainer was going to have to be unloaded at the piers, it

was going to be delayed as much as five to eight days

before you could get the goods into the warehouse facility.

Many of these goods, of course, or the distributors we

worked for, they are awaiting the arrival of the goods.

83

They have orders pending the receipt of the materials into

the facility; and they don’t want them delayed at the

piers.

oa + * * °

[431] @Q And can you say whether or not the prac-

tices which have been enumerated hereby the representa-

tives of other motor truck carriers are similar to the

practices which are followed universally by the members

of your association?

A Yes, that’s true.

Q And, in that respect, then, since the advent of con-

tainers, the motor truck carriers have stripped full ship-

pers loads generally when it suited their economic con-

venience or any other reasons that may appear appro-

priate to them?

A Yes.

* * * *

[433] Q (By Mr. Bohannon) Now, Mr. MeNeill, have

you been active in this Association since you have been a

member of it? .

A Yes.

Q How long has that been?

A Well, the Association has been in existence for

probably 25 years. I myself have been a member of it

for 14 or 15 years.

_Q_ You personally have been D. D. Jones’ representa-

tive for that long?

A Yes, I have.

Q That period of time? And, as a member of that

Association, how long have you been an officer?

A _ Well, I’ve been an officer—It has been about eight

or nine years. From second vice president to first vice

president and president for a period of three years.

Q Now, in your business with D. D. Jones, do you

bias ce contact with other carriers?

es.

9 ng from your contact from the Association?

es.

Q And as your general work with D. D. J ones and

your contact through the Association and your interest

and activities in the Association, would that put you in

84

the position to know without question what the general

practice is of motor truck carriers with regard to full

shipper loads?

A. Yes. In addition to that, I’m also a member, really,

of the Hampton Roads Maritime Association ; and I deal

directly with the committees, with the pier committees,

the Association itself and so forth.

Q Now, is the general practice among all the motor

truck carriers, such as has been related by, for instance,

Mr. Everett, Mr. McCleskey, Mr. Chadwick and the others

regarding stripping of full shippers loads?

A Yes.

Q Now, you mentioned that you were governed by

the—your contract or the motor truck carriers is the uni-

form straight bill of lading.

A That is true; and that is the only document that

governs—

Q Now, is there anything in this uniform straight bill

of lading pertaining to handling of cargo?

[4385] A Yes.

All right. Would you read us that portion, please?

JUDGE WAGMAN: Is that document in evidence?

MR. BOHANNON: Yes; that is in evidence.

JUDGE WAGMAN: Just let us know what paragraph

it is.

THE WITNESS: 2(a).

MR. BOHANNON: It’s Paragraph 2(a). I’m trying

to avoid your having to read all of this.

JUDGE WAGMAN: Oh, I am going to read every-

thing.

A Paragraph 2(a) of the contract states: “No carrier

is bound to—”

JUDGE WAGMAN: We're not reading it.

A Okay. Paragraph 2(a) states that no carrier is

bound to transport any cargo by any particular vessel,

vehicle or any other means of conveyance. In other

words, he can do as he chooses; and that’s a part of the

contract itself. It’s signed and initiated at the time he

picks up the cargo.

Q (ByMr. Bohannon) Now, moving over just briefly,

to make sure we've got it straight, just how the ware-

85

house business has been handled since the advent of

containers, I understand that until the first ILA-HRSA

contract entered into in 1968 that D. D. Jones was able

to pick up containers at pier facilities whenever they were

designated to come to their warehouse and they were not

stripped prior to that time?

A Yes.

[4386] Q Is that correct?

A That’s correct.

Q And that after that contract was entered into, D. D.

Jones was able to pick up no containers whatsoever until

the Dublin agreement was entered into in 73, is that

correct?

_A That’s correct unless, of course, at one period of

time we were handling units beyond the 50-mile radius

as a motor carrier which we had sold that authority.

Q I’m talking about your warehouse operation.

A Not within the 50-mile limits, no.

Q So you received no containers whatsoever until the

Dublin rules went into effect?

A That’s true.

Q Now, when the Dublin rules went into effect and

ever since then, you have received containers under the

warehouse rule?

A Except for the 30-day inference.

Q — for the 30-day suspension?

es.

_Q Now, tell us again what the effect of this suspen-

sion was.

A Well, it ju ‘ about cut off our business durin

period time, having depended upon import traffic for owen

60 or 65 percent of our operation; and one large shipper

as I say, diverted traffic. He diverted I know four con-

tainers of [437] one shipment which resulted in a loss of

some $2500.00 worth of revenue; and, within the next

few days, he diverted another four containers, which was

another maybe $1800.00 to $2000.00 worth of revenue

Q Which shipper was this?

A J.C. Penney Company.

86

And in addition to that there were other shippers

which had their movements interfered with, Allis-

Chalmers was one. We were setting up actually an

assembly operation for the Allis-Chalmers Company. They

contended that this might knock out their operation en-

tirely. We have this in one of our warehouses over in

Chesapeake. They also have their facility in Milwaukee,

Wisconsin; and it was a movement, whereas we were

bringing in containerized parts for tractors and so forth

and putting them together, putting the tires on them and

so forth at our building, the lights and safety equipment

and things of this nature. And they contended that if

these units were going to be stripped at the pier, it would

cost them some addition $300.00 per container. First of

all, they couldn’t afford that; they don’t have that much

profit built into these tractors. The competition is too

stiff. And it would possibly cause them to have to cease

doing business with us if this continued.

Q So this continued for this 30-day period?

A For the 30-day period.

[438] Q At which time, the warehouse rules went back

into effect?

A Yes.

Q And you have been able to operate your business

pretty much in a normal manner since then? ~~

A With the restrictions of the 30-day warehouse rule,

which is an hindrance on an efficient operation, as a pub-

lic service company.

Q That’s the Dublin rule?

A That’s the Dublin rule, yes.

* * * *

CROSS EXAMINATION

Q (By Mr. Lambos) Mr. McNeil, how long have

you been a member of the Hampton Roads Shipping As-

sociation, if that’s different. The Maritime Association

has members of the motor carrier industry as well as

steamship industry and so forth. It more or less could

be termed as a civic organization.

87

Q If your testimony was the Hampton Roads Ship-

ping Association, it should be Maritime Association?

A Maritime Association is the proper terminology.

And I have been refused admittance into the shipping

part of this, any of their negotiation committees or any-

thing. I have even [439] asked personally to be admitted

into those negotiations, from the time they started. I

advised the Association that it looked like they were get-

ting into areas that were going to effect the motor car-

rier industry and they had to rights to control. The

steamship rights cease at the pier and the motor carrier

rights pick up at the pier and govern his movement until

he gets to destination.

* © * *

[440] Q And it’s also correct that, prior to the Dublin

rules in January of 1978, D. D. Jones would have to go

down to the pier and pick up any warehouse goods in

break bulk fashion, is that not correct?

A That’s true for one time period. Prior to this

time period, we were free to go and pick it up directly

in containers.

Q But from 1968 through 1973——_

A Yov’re correct.

Q —LD. D. Jones would go down and pick it up in

break fulk fashion?

A Yes.

[446] Q Allright. Let’s take,the shipments within the

50-mile limits of the Port of Hampton Roads.

A Destined within 50-miles, I am aware that the ILA

and CONASA organization agree that these rules apply.

Q And when did you learn that fact?

A Well, I’ve learned it, basically, since the rules came

into effect.

Q In 1968?

A Yes.

* * * *

REDIRECT EXAMINATION

[453] Q Now, Mr. Lambos asked you with respect to

what did you hear at your meetings with respect to al-

leged stripping violations prior to 1974, And you asked

88

to explain. Now, explain what you heard and what was

the position of the motor transport carriers with respect

to the alleged violations for stripping at the motor trans-

port facility.

A The Association has always discussed the container

and ILA Unions problems at most all of its meetings if

a carrier had a grievance that he wanted to bring up.

But the position of the motor carrier industry has always

been that they were not a party to the contract and that

they were gover~ed by the Bill of Lading contract, which

is signed by the shipper as well as the carrier at the time

he picks up the shipment.

And he knows that those are the only rules and [454]

regulations governing the movement of that cargo. He

operates under the Interstate Commerce Commission, un-

der their rules and regulations, and under the authorities

granted to him as a motor carrier or as a common car-

rier. And those are the governing agencies on his opera-

tion and that’s the only agency.

The steamship line is not even a shipper. The steam-

ship line, in essence, is the same as the motor carrier.

The steamship line is a carrier only performing one leg

of the service. And the steamship line’s authority and

control cease at this pier area. In fact, their bill of

ladings themselves designate the piers as being the final

destination for their service. From that point on is why

you have a bill of lading prepared, and that’s where the

motor carrier picks up and assumes responsibility for

the load.

[467] GEORGE L. MAIER

was called as a witness and, having been first duly sworn,

was examined and testified as follows:

* * * *

DIRECT EXAMINATION

* * * *

89

[468] Q Could you give us your position with United

States Lines in Baltimore?

A Iam the port manager in Baltimore.

Q And how long have you been the port manager in

Baltimore for U.S. Lines?

A About five years.

Q Do you hold any position with the Steamship Trade

Association of Baltimore?

A Yes, I do.

Q Could you tell us what that position is?

A Im president of that organizatioa.

Q Would you describe for us the identity of the

Steamship Trade Association of Baltimore?

A The Steamship Trade Association is an unincor-

porated association of maritime members in the Port of

Baltimore, mainly consisting of steamship carriers, agents

and other ancillary corporations allied with the steamship

industry.

And is United States Lines a member of the Steam-

ship Trade Association?

A Yes, we are.

Q Is the Steamship Trade Association a member of

any other unincorporated association dealing with the

ILA?

A Yes.

Q Tell us the name of that organization.

A CONASA.

[488] GEORGE L. MAIER

a witness previously sworn, resumed the stand and con-

tinued to testify as follows:

VOIR DIRE EXAMINATION

* * * *

[493] ow, could you tell us what action United

States Lines has taken in each of these cases?

A. In cases where it came to our attention, prior to

the delivery of such a shipment to a truckman and it

came to our knowledge that the intent of the truckman

90

was to deconsolidate this container and restuff it into

his own equipment at his platform, we refused delivery

of that cargo to the truckman.

Q@ Has U.S. Lines handled full shippers loads at its

terminal in the Port of Baltimore?

A If we’re talking about full shippers loads that we

may have stripped from a container, yes.

Q Could you tell us whether there are ocasions when

full shpipers loads are, in fact, stripped at the terminal?

A Oh, yes, sir. There were several occasions and

several reasons for doing it.

Q Could you give us the occasions and the reasons for

that?

A One of the reasons was the one that I just cited in

relation to our previous knowledge of a container being

deviated from its ultimate destination and being handled

prior [494] to its ultimate destination. Another case

might be where a container or a chassis or another piece

of equipment might be damaged beyond a road-worthy

ability to move this container and we would then strip

and possibly stuff another container for ultimate move-

ment to destination. A third case may be where the

shipper himself might request what we call a pier delivery

or an LCL or a break bulk delivery rather than moving it

in tact to his facility.

Q Mr. Maier, I show you the documents marked Gen-

eral Counsel’s Exhibit 11 and ask you whether this is the

collective bargaining agreement for the period from Oc-

tober 1, 1968, to September 30, 1971, between the Steam-

ship Trade Association and the ILA?

A Yes, it is.

Q Could you turn to the rules on containers?

A Yes. Page 3, right at the beginning.

Q In that regard, are these the rules that were

adopted by the Steamship Trade Association as a result

of collective bargaining in the Port of New York by the

New York Shipping Association?

A Yes.

Q And they are the same rules that were in effect in

“ue Roads for the same period?

Yes.

91

Q And the same rules that were in effect in the Port

of [495] New York for the same period?

A Yes.

[496] @Q And there is already evidence in the record

that in 1971 the negotiations were conducted by CONASA

on behalf of all the ports?

A That’s correct.

Q Now, were there revisions made in the rules in the

collective bargaining between CONASA and the ILA in

1974?

A Yes, there were some general revisions. If we are

talking about revisions on maybe putting some interpre-

tations into language, there were some changes, yes.

Q Now, could you tell us what the intent of those

negotiations was in June of 1974?

A In June of 1974, of course, the ultimate intent was

to come out with a mutually agreeable contract that both

sides could live with for the subsequent three years; and

the intent also was to maybe codify or put into writing

some of the interpretations that had come out of rulings

of local committees and substantiated maybe by CONASA

container meetings during the previous three years or

possibly even going back to the original agreement in

1968.

* * * *

CROSS EXAMINATION

[510] Q Now, when did containers, as we know con-

tainers, first arrive in the Baltimore area?

A Iwas not in Baltimore during the inception of con-

tainerization. I only came into Baltimore in 1970. But,

as we know containerization today, I would say that the

containerization probably started in the late 1960’s in

Baltimore.

Q When you say the late 60’s, do you mean ’65, ’66?

A In that area. As I say, I was not a resident of

Baltimore [511] at the time, so I cannot factuaily speak

to that.

Q When did you first arrive in Baltimore to be af-

filiated with United States Lines?

A August of 1970.

92

Q Do you know what a full shippers load is?

A Yes.

Q Would you define it for us?

A A full shippers load is an in tact container moving

from a shipper to a consignee directly without any inter-

mediate stops.

Q How many containers does United States Lines

handle a year, to the best of your knowledge?

A In Baltimore?

Q In Baltimore.

A About 25,000.

Q How many containers of the 25,000 a year would

be full shipper loads?

A I would say in the area of 80 to 85 percent.

Q So, we’re talking about seventeen and eighteen

thousand, is that correct?

A That’s correct.

& * * *

[517] Q Now, I show you two letters dated April 12,

1974, and June 14, 1974, from a Mr. Talbert of Cooper

Jarett. Do you know that gentleman?

A No, I don’t.

Q Now, if you will read that letter for me, please.

MR. LAMBOS: What date is that?

MR. ROSENSTEIN: June 14th and April 12th.

A Yes.

Q (By Mr. Rosenstein) Now, here was a load that

was stripped 287 miles from the Port of Baltimore, is

that correct? :;

A That’s what he states, yes.

Q And it was stripped because the load had shifted

over the left rear wheel and was unsafe to continue?

[518] A That’s what he states.

Q And the ILA contends that that is a violation of

their rules on containers?

A I can’t speak for the ILA.

Q I show you a letter dated May 15, 1974, and ask

a whether or not that is signed by Mr. Fortune.

Yes.

93

Q And doesn’t that summarize that the ILA con-

tends that those two letters reveal viofations of the con-

tainer rule?

A Right.

* * *

[523] Q Now, that paragraph says that you were

present at the joint container committee meeting where

Houff’s violations were discussed.

A That’s correct.

Q And was that on March 31, 1974?

A Approximately.

Q Now, you contended that the consolidation of house

to house containers did not constitute a violation of the

agreement, is that correct?

A Yes.

* * -_ *

[524] Q I show you a letter dated April 11, 1974,

from yourself [525] to Mr. Hughes. And I want you to

read that letter in its entirety, please.

A All right.

Q Now, the first paragraph you said that a contro-

versy has arisen recently concerning the justification o

This text is long and has been trimmed here. Open the source document for the complete record.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.