CIS Microfiche Library 1970-2002 (CIS Asia Pacific Collection)

 CIS NO: 78-H561-31
 TITLE: Pacific Far East Line Oversight.
 SOURCE: Committee on Merchant Marine and Fisheries. House
 DOC TYPE: Hearing                   COLLATION: iii+175 p.
 DATE: Feb. 23, Mar. 20, 1978
 CONGRESS-SESSION: 95-2              SUDOC: Y4.M53:95-36
 ITEM NO: 1021
 LC CARD NO: 79-600875               MC ENTRY NO: 79-10550

 Committee Serial No. 95-36. Oversight hearings before the Subcom on
 Merchant Marine to review the factors contributing to the institution of
 bankruptcy proceedings by the federally subsidized Pacific Far East Lines
 (PFEL).
   Considers Maritime Administration (MarAd) supervision of PFEL, including
 prudence of decision to advance a principal payment due on a PFEL bank loan
 to avoid default.
 CONTENT NOTATION: Pacific Far East Lines financial problems and Maritime
     Admin oversight role
 DESCRIPTORS (and special content notations): SUBCOM ON MERCHANT MARINE.
     HOUSE; PACIFIC FAR EAST LINES (Financial problems and Maritime Admin
     oversight role); BANKRUPTCY; MERCHANT MARINE; MARITIME ADMINISTRATION

 78-H561-31 TESTIMONY NO: 1         Feb. 23, 1978 p. 1-24
 WITNESSES (and witness notations):
     BLACKWELL, ROBERT J. (Asst Sec, Maritime Aff, MarAd)
 DISCUSSION: Examination of MarAd monetary advance to PFEL, with review of
     PFEL financial operations and planning; enumeration of PFEL holdings.
 CONTENT NOTATION: Pacific Far East Lines financial problems and Maritime
     Admin oversight role

 78-H561-31 TESTIMONY NO: 2         Mar. 20, 1978 p. 25-31
 WITNESSES (and witness notations):
     INGOLIA, JOSEPH N. (Gen Counsel, Fed Maritime Commission (FMC));
        accompanied by BARTAK, FRANK (Chief, Office of Passenger Vessel
        Certification)
 DISCUSSION: Clarification of PFEL passenger vessels difficulties
     maintaining FMC certification due to insurance renewal delay.
 CONTENT NOTATION: Pacific Far East Lines financial problems and Maritime
     Admin oversight role
 DESCRIPTORS: PASSENGER SHIPS; MARINE INSURANCE; FEDERAL MARITIME
     COMMISSION

 78-H561-31 TESTIMONY NO: 3         Mar. 20, 1978 p. 32-136
 WITNESSES (and witness notations):
     ALIOTO, JOHN I. (former pres, PFEL); accompanied by ALIOTO, JOSEPH,
        JR. (atty)
 STATEMENT: Chronology of PFEL operations from 1974 to present. (p. 32-39)
 DISCUSSION: Suggestions for improving Federal management of subsidized
     ocean liner companies; explanation of current antitrust litigation
     against Sea-Land Service, Inc. on basis of claimed illegal rebating
     policies, and account of fruitless attempts to secure Federal
     intervention; alleged discrimination by Japan against U.S.-flag vessels
     (related documentation, p. 44-77). (p. 39-94)
       Factors contributing to PFEL high operating expenses, specifically
     labor union agreements; impact of PFEL bankruptcy on labor union pension
     funds; difficulties operating LASH (lighter aboard ship) vessels in
     Pacific trade. (p. 94-113)
       Factors contributing to PFEL financial crisis in 1977. (p. 113-118)
 CONTENT NOTATION: Pacific Far East Lines financial problems and Maritime
     Admin oversight role
 DESCRIPTORS (and special content notations): SEA-LAND SERVICE, INC.
     (Illegal rebating in maritime trade); BUSINESS ETHICS (Illegal
     rebating in maritime trade); JAPAN (Maritime trade discrimination);
     LABOR UNIONS

 78-H561-31 TESTIMONY NO: 4         Mar. 20, 1978 p. 136-165
 WITNESSES (and witness notations):
     BLACKWELL, ROBERT J. (Asst Sec, Maritime Aff, MarAd)
 DISCUSSION: Overview of MarAd 1974 study of PFEL; factors contributing to
     PFEL 1977 financial crisis; review of MarAd oversight of PFEL, including
     suitability of LASH vessels for Pacific trade; views on protecting U.S.
     merchant marine.
 CONTENT NOTATION: Pacific Far East Lines financial problems and Maritime
     Admin oversight role

 78-H561-31 TESTIMONY NO: 5         Mar. 20, 1978 p. 165-175
 WITNESSES (and witness notations):
     BUSER, LAWRENCE J. (pres, PFEL); accompanied by HITT, JAMES (sr vp,
        finance)
 STATEMENT AND DISCUSSION: Status of current PFEL financial situation,
     including attempts to generate operating capital.
 CONTENT NOTATION: Pacific Far East Lines financial problems and Maritime
     Admin oversight role