[Federal Register Volume 60, Number 188 (Thursday, September 28, 1995)]
[Notices]
[Pages 50204-50205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24015]



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FEDERAL MARITIME COMMISSION

[Docket No. 95-14]


Michael A. Grant, doing business as Island Shipping Inc.; Order 
to Show Cause

    This proceeding is instituted pursuant to sections 8, 11 and 23 of 
the Shipping Act of 1984 (``1984 Act''), 46 U.S.C. app. 1707, 1710 and 
1721, and the Commission's regulations governing the tariffing and 
bonding of non-vessel operating common carriers, 46 C.F.R. parts 514 
and 580.
    Michael A. Grant is a resident of the State of Maryland. Since at 
least October 1994, Mr. Grant maintained offices at 8605 Cameron 
Street, Suite M1, Silver Spring, Maryland, from which premises Mr. 
Grant operates a business under the trade name of Island Shipping 
Inc.\1\

    \1\ It appears that, in March 1990, a corporation by the name of 
Island Shipping Inc. (``Island Shipping'') was established under the 
laws of Maryland. Its registered agent was Michael A. Grant of 
Silver Spring, Maryland. The corporate charter of Island Shipping 
was revoked by the State of Maryland in October 1992, for failure to 
file reports required by the State.
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    It appears that subsequent to November 1993, Michael A. Grant, 
doing business as Island Shipping, shipped or agreed to transport 
shipments of household goods, furniture and personal effects in the 
foreign commerce of the United States. In at least five (5) instances 
known to the Commission, Mr. Grant or his agents are alleged to have 
picked up the goods from various individuals or households within the 
Washington, D.C. area. A bill of lading in the name of Island Shipping 
was issued to the individual tendering the goods reflecting prospective 
delivery of the goods on behalf of the named shipper at overseas 
destinations.\2\ A cash receipt, also known in the name of Island 
Shipping, was issued for compensation received with respect to the 
transportation.
    In at least seventeen (17) additional instances, it appears Mr. 
Grant, doing business as Island Shipping, contracted for space aboard 
vessels by which the ocean transportation was to be provided. On each 
of these shipments via a vessel-operating common carrier, Island 
Shipping is identified on corresponding shipping documents, such as 
bills of lading, as the shipper.\3\ In most instances, Island Shipping 
also appear as the billing party for the payment of freight on the 
subject shipments.
    Section 8 of the 1984 Act, 46 U.S.C. app. Sec. 1707, provides that 
no common carrier may provide service in the United States foreign 
trades unless the carrier has first filed a tariff with the Federal 
Maritime Commission showing all of its rates, charges and practices. 
Section 23 of the 1984 Act further provides that each non-vessel-
operating common carrier must furnish to the Commission a bond, proof 
of insurance or other surety, inter alia, to insure the financial 
responsibility of the carrier to pay any judgment for damages arising 
from its transportation-related activities.\4\ According to a review of 
records maintained by the Commission's Bureau of Tariffs, Certification 
and Licensing, no tariff or bond has been filed with the Commission in 
the name of Island Shipping or Mr. Grant. Therefore, it would appear 
that Michael A. Grant, doing business as Island Shipping, by providing 
and holding himself out to the public to provide transportation by 
water of cargo for compensation and by contracting in the capacity as a 
shipper in relation to an ocean common carrier for the carriage of 
cargo of other persons, has acted as a non-vessel-operating common 
carrier without a tariff or bond on file with the Commission, in 
violation of sections 8 and 23 of the 1984 Act.

    \4\ Based on information currently available to the Commission, 
see fn. 2, at least four individuals who have utilized the services 
of Island Shipping claim to have suffered financial injury due to 
the action or inaction of Island Shipping in the transportation of 
their shipments. Claims by these shippers include property damage to 
goods in shipment (Xenia Bruce), loss of cargo (Owen White; and 
Collin Bruce), and payment of additional freight to obtain release 
of cargo by the ocean common carrier whose vessel transported the 
goods (Ethel Phillips).
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    Now therefore, it is ordered That pursuant to section 11 of the 
Shipping Act of 1984, Michael A. Grant, doing business as Island 
Shipping, show cause why he should not be found to have violated 
section 8 of the Shipping Act of 1984 by acting as a non-vessel-
operating common carrier in each of twenty-two (22) instances, 
specified above, without a tariff for such service on file with the 
Commission;
    It is further ordered That pursuant to section 11 of the Shipping 
Act of 1984, Michael A. Grant, doing business as Island Shipping, show 
cause why he should not be found to have violated section 23 of the 
Shipping Act of 1984 by acting as a non-vessel-operating common carrier 
in each of twenty-two (22) instances, specified above, without a bond 
for such service on file with the Commission;
    It is further ordered That Michael A. Grant, doing business as 
Island Shipping, show cause why an order should not be issued directing 
Michael A. Grant to cease and desist from providing or holding himself 
out to provide transportation as a common carrier and from obtaining 
from any common carrier transportation by water of the cargo of any 
other person between the U.S. and a foreign country unless and until 
such time as Mr. Grant or Island Shipping shall have filed a tariff and 
a bond for such service with the Commission.

[[Page 50205]]

    It is furthered ordered That this proceeding is limited to the 
submission of facts and memoranda of law;
    It is further ordered That any person having an interest and 
desiring to intervene in this proceeding shall file a petition for 
leave to intervene in accordance with Rule 72 of the Commission's Rules 
of Practice and Procedure, 46 CFR Sec. 502.72. Such petition shall be 
accompanied by the petitioner's memorandum of law and affidavits of 
fact, if any, and shall be filed no later than the day fixed below;
    It is further ordered That Michael A. Grant is named a Respondent 
in this proceeding. Affidavits of fact and memoranda of law shall be 
filed by Respondent and any intervenors in support of Respondent no 
later than October 16, 1995;
    It is further ordered That the Commission's Bureau of Hearing 
Counsel be made a party to this proceeding;
    It is further ordered That reply affidavits and memoranda of law 
shall be filed by the Bureau of Hearing Counsel and any intervenors in 
opposition to Respondent no later than November 6, 1995;
    It is further ordered That rebuttal affidavits and memoranda of law 
shall be filed by Respondents and intervenors in support no later than 
November 6, 1995;
    It is further ordered That:
    (a) Should any party believe that an evidentiary hearing is 
required, that party must submit a request for such hearing together 
with a statement setting forth in detail the facts to be proved, the 
relevance of those facts to the issues in this proceeding, a 
description of the evidence which would be adduced, and why such 
evidence cannot be submitted by affidavit;
    (b) Should any party believe that an oral argument is required, 
that party must submit a request specifying the reasons therefore and 
why argument by memorandum is inadequate to present the party's case; 
and
    (c) Any request for evidentiary hearing or oral argument shall be 
filed no later than November 16, 1995;
    It is further ordered That notice of this Order to Show Cause be 
published in the Federal Register, and that a copy thereof be served 
upon Respondent;
    It is further ordered That all documents submitted by any party of 
record in this proceeding shall be filed in accordance with Rule 118 of 
the Commission's Rules of Practice and Procedure, 46 CFR 502.118, as 
well as being mailed directly to all parties of record;
    Finally, it is ordered That pursuant to the terms of Rule 61 of the 
Commission's Rules of Practice and Procedure, 46 CFR 502.61, the final 
decision of the Commission in this proceeding shall be issued by 
February 29, 1996.

    By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 95-24015 Filed 9-27-95; 8:45 am]
BILLING CODE 6730-01-M