*Editorial Note: In what surely was one of the most mind-bending “THEY SAY!/WE SAY!” criss-crossed News Days ever in the entire HISTORY of San Diego, September 12, 1956 was a “high water” mark! To wit:
“TUNA GROUPS ACCUSED OF CONSPIRACY – Industry, Unions Cited for Alleged Bid To Fix Prices (Washington D.C. – Sept. 11th) – The Pacific Coast tuna industry and the tuna industry’s labor unions today were accused by the FEDERAL TRADE COMMISSION of ~conspiracy~ to fix the price of tuna and to stifle competition. The Unions named in the complaint are the CANNERY WORKERS & FISHERMEN’S UNION of the Pacific, San Diego, LOCAL 33 of the FISHERMEN’S & ALLIED WORKERS DIVISION of the INTERNATIONAL LONGSHOREMEN & WAREHOUSEMEN’S UNION, San Pedro, and the SEINE & LINE FISHERMEN’S UNION, also of San Pedro. The ‘Big Three’ of the tuna canning industry – VAN CAMP SEA FOOD CO. and STAR-KIST FOODS INC., both of SAN PEDRO, and WESTGATE-CALIFORNIA TUNA PACKING CO. of SAN DIEGO – also were named in the complaint. The three companies jointly account for 70% of the tuna pack.
10 OTHERS NAMED
Also named were 10 other members of the CALIFORNIA FISH CANNERS ASSOCIATION INC., the COLUMBIA RIVER PACKERS ASSOCIATION of Astoria, Oregon, and several associations of boat owners. *Included were the HIGH SEAS TUNA PACKING CO. INC. (Roseville, Point Loma), the AMERICAN TUNABOAT ASSOCATION (A.T.A.), and the FIVE STAR FISH & COLD STORAGE CO., all of San Diego. The Commission scheduled a hearing for November 19th in Long Beach on its complaint charging virtually the entire West Coast tuna industry with violation of federal fairtradelaws. Those named in the complaint were given 30 days to file answers. The West Coast account for more than 90% of the nation’s $200,000,000 per year (equivalent to $2,281,216,500 today – ed.), wholesale value, tuna pack.
UNION PATROLS CHARGED
The complaint alleged that the boat owner associations negotiate annually with the canners to fix prices to be paid for raw tuna and that the Unions use these prices as a basis for working agreements with the boat owners. The complaint also said the Unions operate ‘patrol boats’ in the San Diego and San Pedro tuna fishing areas to prevent sales of tuna at other than the agreed upon prices. Moreover, the canners, the San Diego tunaboat association (i.e. A.T.A. – ed.) and the San Diego Cannery Workers & Fishermen’s Union, also were accused of having sent a ‘committee’ to JAPAN in a conspiracy to curtail and control the volume of Japanese tuna exports to the United States and to increase prices.
PUBLIC MUST PAY MORE
They also were accused of attempting to cut the supply of Japanese tuna ‘DISCS’ (i.e. frozen pre–cooked, can-shaped pieces of tuna – ed.) to their competitor importers on the East Coast. The Commission said the result of these activities ‘is that the public must pay more for tuna.’ The complaint alleges that the Tunaboat association (i.e. A.T.A.? – ed.) described as the ‘dominant association of boat owners’, is guilty of committing coercive acts to maintain fixed non-competitive prices. The Commission said vessels are not permitted to fish for any cannery who does not agree to pay the fixed prices, and in other instances vessel owners are prohibited from fishing until they agree to sell to a canner designated by the Association. The complaint said members of the Unions refuse to fish until they have approved the prices and some do not fish on any boat whose owner has not committed himself to abide by the prices.
According to the complaint, the Tunaboat association (i.e. A.T.A. again? – ed.) has been making written, price-fixing agreements with the canners since JANUARY of 1953, and the prices agreed upon have become the established for the entire tuna industry on the Pacific Coast. The other members of the CALIFORNIA FISH CANNERS ASSOCIATION named in the complaint were: F. E. BOOTH CO., INC. of San Francisco, CA; CALIFORNIA MARINE CURING & PACKING CO. of San Pedro, CA; FRANCO-ITALIAN PACKING CO., INC. of San Pedro, CA; PAN-PACIFIC FISHERIES INC. of San Pedro, CA; the QUAKER OATS CO. of Chicago, Illinois (which operates a coast fisheries division at Wilmington, CA); SOUTH COAST FISHERIES, INC. of San Pedro, CA; SOUTH PACIFIC CANNING CO., INC.; WEST SHORE CO. and individual partners, LONG BEACH; SUN HARBOR PACKING CO. of San Pedro; and WESTERN CANNERS CO. of Newport Beach, California. Other boat owner associations named were: FISHERMEN’S COOPERATIVE ASSOCIATION of San Pedro, CA; and FEDERATED FISHERMEN’S ASSOCIATION, INC. of San Pedro, CA; a coopeative association of these four other associations; CALIFORNIA COMMERCIAL FISHERMEN’S ASSOCIATION, INC. of San Pedro, CA; the FIVE STAR ASSOCIATION of San Diego; the FISHERMEN’S COOPERATIVE ASSOCIATION, of Seattle, Washington, and SALMON TROLLERS MARKETING ASSOCIATION, INC. of Fort Bragg, California.”
(*Source: San Diego Union & DAILY BEE – Wednesday, September 12, 1956 – Pgs 1 & 2)
*Editorial Note: As you might (ahem!) surmise…
~REBUTTALS WERE IMMEDIATE! Part 1 (*Same Publ, Day, Page 2) ~
“PRICES LOWER THAN IN YEARS – ACCUSATIONS RIDICULOUS, SAN DIEGO TUNA MEN SAY – Representatives of the San Diego tuna industry yesterday denied government charges of an industry conspiracy. The Federal Trade Commission yesterday accused the Pacific Coast tuna industry, including most of its San Diego segments, of conspiring to fix tuna prices and prevent outside competition. Mr. William C. Morehead, President of the California Fish Canners Association Inc., said the charges came as a shock to his group, which he said represents all processors in Southern California: ‘The tuna industry has never been in so demoralized a state as it is now,’ Morehead told reporters. ‘Fully 10 out of 11 processors operated at a loss last year. These charges by the Federal Trade Commission come as a complete shock to us.‘ Morehead said the charge is ridiculous. ‘Heavy production and competition from the Japanese tuna industry has forced us to cut prices,’ he said. ‘How can we be accused of a conspiracy to maintain prices when canned tuna prices are lower now than they’ve been in years?’
LAWS OBEYED, CAREY SAYS
Mr. Howard C. Carey, General Manager of the AMERICAN TUNABOAT ASSOCIATION (A.T.A.), issued a statement on the charges. He said his group represents 110 boats, most of them based in San Diego. ‘The association is a group of boat owners organized as a cooperative marketing association under the laws of the state of California.’ Carey said. ‘It conducts its business affairs in full accord with its understanding of applicable laws.’ He said he had not had an opportunity to read the specific charges. ‘I’m sorry I can’t elaborate…, I’d love to; but this is a legal matter and will go to our attorney’, he said.
WESTGATE-CALIFORNIA TUNA PACKING CO., one of the local firms named in the complaint, also issued a statement. ‘Our first knowledge of the charges came from the press this morning and late today we received a copy oi the complaint,’ the statement said. ‘Since the entire American tuna industry, including Unions, boat Associations and Canneries, is involved; it would be premature on our part to attempt to make any statement.’
UNION LEADER DENIES CHARGE
Mr. Louis Balinger, Secretary of the Cannery Workers and Fishermen’s Union of the Pacific, AFL, said, ‘I don’t think we’ve done anything wrong and that’s it.’ His local has 1,700 members and 300 permit workers, nearly all employed by the tuna industry. Balinger said he knew nothing about government charges that the Unions have operated ‘patrol boats’ in cooperation with some boat owners to ‘police’ the San Diego and San Pedro tuna fishing areas. Mr. Stan Peterson, Manager of the HIGH SEAS TUNA PACKING CO. plant, and a representative of the FIVE STAR FISH & COLD STORAGE CO., declined to comment.”
(*Source: San Diego Union & DAILY BEE – Wednesday, September 12, 1956 – Pg. 2)
~ REBUTTALS WERE IMMEDIATE! Part 2 (*Same Publ, Day, Page 2) ~
“WHO COMPLAINED? WHEN?? – TWO VITAL QUESTIONS DRAW BLANK IN F.T.C. (Washington D.C., Sept. 11th) – Two questions went unanswered today in the FEDERAL TRADE COMMISSION’S complaint against the West Coast tuna industry. The F.T.C. charged that ‘virtually all of the tuna industry on the West Coast is engaged in a conspiracy to fix tuna prices and to prevent competition in this industry.’ So Mr. S. F. Stowe, Director of Information for the Commission, was asked:
1. WHEN did the investigation of the West Coast tuna industry by the F.T.C. begin?
2. WHO filed the original complaint against the industry? Japanese exporters?! Importers of Japanese tuna?! The Commission?!
Stowe said that for any of the F.T.C. staff to answer these two fundamental questions without approval of a majority of the five-member Commission would subject that staff member to a $5,000 fine (equivalent to $57,000 today – ed.). The F.T.C. said the investigation resulted from alleged practices of the domestic industry since ‘about 1952.’ Stowe then said he was not at liberty to say when the investigation began, before or after 1952. Stowe also said he could not disclose who lodged the complaint without a majority vote of the Commission.”
(*Source: San Diego Union & DAILY BEE – Wednesday, September 12, 1956 – Pg. 2)