FOR IMMEDIATE RELEASE                                          AT
TUESDAY, SEPTEMBER 26, 1995                        (202) 616-2771
                                               TDD (202) 514-1888

    JUSTICE STOPS TAMPA, FLORIDA, OCEAN CARRIER FROM IMPOSING
            AN ADDITIONAL COST ON SMALL WINE IMPORTERS


     WASHINGTON, D.C. -- The Department of Justice took steps
today to end discriminatory shipping rates that put small
importers of wine and liquor at a competitive disadvantage.
     The Department's Antitrust Division filed a lawsuit to
challenge an agreement between the Lykes Bros. Steamship Co.
Inc., a major carrier of wine and spirits headquartered in Tampa,
Florida, and the Universal Shippers Association, the largest
association of importers of wine and spirits, under which Lykes
was required to charge other importers at least five percent more
in shipping costs than it charged Universal.
     The Department said the additional cost made it harder for
smaller domestic competitors to transport products from Europe to
the United States at lower prices.  
     At the same time, the Department filed a proposed consent
decree, that if approved by the court, would settle the suit. 
The consent decree would be in effect for up to 10 years. 
     In the suit filed in U.S. District Court in Washington,
D.C., the Department said the contract provision, called an
"automatic rate differential," gave Universal an unreasonable
advantage over its competitors.  Universal handles about half of
the wine and spirits carried from Europe to the United States.
     Anne K. Bingaman, Assistant Attorney General in charge of
the Department of Justice's Antitrust Division, said, "The
automatic rate differential clause in this case acted as a kind
of tax on Universal's competitors, making it harder for them to
bring wine and spirits into the United States at lower prices. 
The settlement, which would prohibit Lykes from agreeing to
similar clauses in the future, levels the playing field for
competitors of Universal."
     The consent decree prohibits Lykes from maintaining,
adopting, agreeing to, or enforcing an automatic rate
differential clause in any contract.  It also nullifies any
automatic rate differential clause in any existing contract. 
Upon entry of the consent decree, Lykes must notify in writing
each shipper with whom it has an automatic rate differential
clause letting them know that the consent decree prohibits such a
clause.  Lykes also will be required to maintain an antitrust
compliance program.
     U.S. wine and spirits importers spend more than $40 million
on ocean transportation annually between Europe and the United
States.  Importers often join shippers' associations, including
Universal Shippers Association, that negotiate ocean
transportation agreements for them.  Universal's members include
beverage dealers as well as large distillers that ship their own
products.  
       As required by the Tunney Act, the proposed consent
decree, along with the Department's competitive impact statement,
will be published in the Federal Register.  Any person may submit
written comments concerning the proposed consent decree during a
60-day comment period to Roger W. Fones, Chief, Transportation,
Energy and Agriculture Section, Room 9104, U.S. Department of
Justice, 555 Fourth Street, N.W., Washington, D.C.  20001. 
Telephone: 202/307-6351.
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95-500