[Federal Register Volume 64, Number 79 (Monday, April 26, 1999)]
[Notices]
[Page 20308]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10352]



[[Page 20308]]

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FEDERAL MARITIME COMMISSION

[Docket No. 99-06]


Direct Container Line Inc. and Owen Glenn, Possible Violations of 
Section 10(a)(1) of the Shipping Act of 1984; Order of Investigation 
and Hearing

    Respondent Direct Container Line Inc. (``DCL'') is a tariffed and 
bonded non-vessel-operating common carrier (``NVOCC'') based in Carson, 
California, DCL holds out to furnish transportation services worldwide, 
including NOVOCC services, inter alia, from ports and points in the 
United States to ports and points in South America. According to DCL's 
webpage, DCL operates 13 offices and 25 receiving terminals in the 
United States and Canada, with branches or subsidiaries in 86 countries 
worldwide. DCL claims to have over 500 employees, with over 350 based 
in the United States.
    Respondent Owen Glenn is Chairman and Chief Executive Officer of 
DCL. Mr. Glenn is a resident of California.
    It appears that subsequent to October 1994, DCL, by receiving 
rebates and other freight rate concessions, knowingly and willfully 
obtained transportation for less than applicable tariff or service 
contract rates from one or more ocean common carriers providing service 
to Chile, Peru and destinations on the East Coast of South America. The 
receipt of these alleged rebates appears to have been arranged by DCL's 
principal, Owen Glenn.
    Now therefore, it is ordered, That pursuant to sections 10, 11, 13 
and 23 of the 1984 Act (``1984 Act''), 46 U.S.C. app. 1709, 1710, 1712 
and 1721, an investigation is instituted to determine:
    (1) Whether Direct Container Line, Inc., either alone or in 
conjunction with other persons, violated section 10(a)(1) of the 1984 
Act by obtaining or attempting to obtain ocean transportation of 
property at less than the rates and charges shown in applicable tariffs 
or service contracts;
    (2) Whether Owen Glen, either alone or in conjunction with other 
persons, violates section 10(a)(1) of the 1984 Act by obtaining or 
attempting to obtain ocean transportation of property at less than the 
rates and charges shown in applicable tariffs or service contracts;
    (3) Whether, in the event violations of section 10(a)(1) of the 
1984 Act are found, civil penalties should be assessed against DCL and 
Owen Glenn and, if so, the amount of such penalties;
    (4) Whether, in the event violations of section 10(a)(1) of the 
1984 Act are found, the Commission should cancel or suspend any or all 
tariffs of DCL or revoke any Commission issued license authorizing DCL 
to operate as an Ocean Transportation Intermediary; and
    (5) Whether, in the event violations of section 10(a)(1) of the 
1984 Act are found, an appropriate cease and desist order should be 
issued.
    It is further ordered, That a public hearing be held in this 
proceeding and that this matter be assigned for hearing before an 
Administrative Law Judge of the Commission's Office of Administrative 
Law Judges at a date and place to be hereafter determined by the 
Administrative Law Judge in compliance with Rule 61 of the Commission's 
Rules of Practice and Procedure, 46 CFR 502.61. The hearing shall 
include oral testimony and cross-examination in the discretion of the 
Presiding Administrative Law Judge only after consideration has been 
given by the parties and the Presiding Administrative Law Judge to the 
use of alternative forms of dispute resolution, and upon a proper 
showing that there are genuine issues of material fact that cannot be 
resolved on the basis of sworn statements, affidavits, depositions, or 
other documents or that the nature of the matters in issue is such that 
an oral hearing and cross-examination are necessary for the development 
of an adequate record;
    It is further ordered, That Direct Container Line Inc. and Owen 
Glenn are designated as Respondents in this proceeding;
    It is further ordered, That the Commission's Bureau of Enforcement 
is designated a party to this proceeding;
    It is further ordered, That notice of this Order be published in 
the Federal Register, and a copy be served on parties or record;
    It is further ordered, That other persons having an interest in 
participating in this proceeding may file petitions for leave to 
intervene in accordance with Rule 72 of the Commission's Rules of 
Practice and Procedure, 46 CFR 502.72;
    It is further ordered, That all further notices, orders, and/or 
decisions issued by or on behalf of the Commission in this proceeding, 
including notice of the time and place of any hearing or prehearing 
conference, shall be served on parties of record;
    It is further ordered, That all documents submitted by any party of 
record in this proceeding shall be directed to the Secretary, Federal 
Maritime Commission, Washington, D.C. 20573, in accordance with Rule 
118 of the Commission's Rules of Practice and Procedure, 46 CFR 
502.118, and shall be served on parties of record; and
    It is further ordered, That in accordance with Rule 61 of the 
Commission's Rules of Practice and Procedure, 46 CFR 502.61, the 
initial decision of the Administrative Law Judge shall be issued by 
April 20, 2000, and the final decision of the Commission shall be 
issued by August 18, 2000.

    By the Commission.
Bryant L. VanBrakle,
Secretary.
[FR Doc. 99-10352 Filed 4-23-99; 8:45 am]
BILLING CODE 6730-01-M