9410047
B252370

UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION

COMMISSIONERS:
Robert Pitofsky, Chairman
Sheila F. Anthony
Mozelle W. Thompson
Orson Swindle

In the Matter of

Columbia River Pilots, an unincorporated association.

Docket No. C-3854

DECISION AND ORDER

The Federal Trade Commission ("Commission"), having initiated an investigation of certain acts and practices of respondent Columbia River Pilots ("COLRIP"), and the respondent having been furnished thereafter with a copy of a draft of complaint which the Bureau of Competition proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge the respondent with violation of the Federal Trade Commission Act; and

The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by respondent of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission's Rules; and

The Commission having thereafter considered the matter and having determined it had reason to believe that the respondent has violated the said Act, and that a complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure described in 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

1. COLRIP is an unincorporated association whose members are marine pilots or corporations owned by marine pilots. Respondent is organized and does business under the laws of the State of Oregon, and has its offices at 13225 N. Lombard, Portland, Oregon 97203.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER

I.

IT IS ORDERED that, as used in this order, the following definitions shall apply:

A. "COLRIP" means Columbia River Pilots, its directors, officers, employees, agents and representatives, predecessors, successors, and assigns; its subsidiaries, divisions, groups and affiliates controlled by COLRIP, and the respective directors, officers, employees, agents, representatives, successors, and assigns of each.
 
B. "Commission" means the Federal Trade Commission.
 
C. "Columbia and Willamette River Pilotage Ground" or "the Grounds" is one of the pilotage grounds designated by the State of Oregon, and refers specifically to the Columbia and Willamette Rivers and their tributaries from the lowermost dock or wharf at the Port of Astoria to the head of navigation.
 
D. "Marine pilot" means an individual licensed by the State of Oregon to assist the master of a vessel on the Grounds, but does not include a pilot trainee or apprentice.

II.

IT IS FURTHER ORDERED that COLRIP, directly, indirectly, or through any corporate or other device, in connection with its activities in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act, as amended, 15 U.S.C. 44, cease and desist from:

A. Imposing any restrictions or penalties of any kind on COLRIP marine pilots who leave COLRIP, or who notify COLRIP of their intention of leaving COLRIP, to provide pilotage in competition with COLRIP; provided, however, that this subparagraph does not apply to restrictions or penalties on marine pilots who have been members of COLRIP for less than five (5) years, nor does this subparagraph apply to restrictions or penalties that are imposed on a marine pilot for failure to give at least ninety (90) days' advance notice of departure from COLRIP;
 
B. Entering into, or attempting to enter into, any agreement or understanding (other than agreements or understandings with COLRIP members, trainees or apprentices limited to performance of their pilotage duties with COLRIP and to the term of their membership, apprenticeship or training program with COLRIP), either express or implied, with any other provider or potential provider of marine pilotage on the Columbia and Willamette River Pilotage Ground:

(1) to divide, apportion or otherwise allocate customers, routes or any other aspect of the market for marine pilotage;

(2) to limit the number of marine pilots associated with any provider or potential provider of marine pilotage or otherwise restrict the amount of marine pilotage any provider or potential provider of marine pilotage may provide;

(3) to restrict the ability of any other provider or potential provider of marine pilotage to enter into exclusive dealing contracts with any customer; or

(4) to restrict the ability of any provider or potential provider of marine pilotage to submit proposals, recommendations or any other communication to the Oregon Board of Maritime Pilots.

III.

IT IS FURTHER ORDERED that COLRIP shall, within sixty (60) days after the date on which this order becomes final, amend its constitution, bylaws, standards of conduct, codes of ethics, membership rules, and any other statements of policy or agreements, to conform to the requirements of Paragraph II of this order.

IV.

IT IS FURTHER ORDERED that COLRIP, directly, indirectly, or through any corporate or other device, in connection with its activities in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act, as amended, 15 U.S.C. 44, shall not prevent any COLRIP marine pilot from recommending or otherwise supporting an applicant for a Certificate as a Pilot Apprentice Trainee or an applicant for a marine pilot license. Nothing in this paragraph is intended to interfere with COLRIP's right to recommend certain applicants over others, nor to interfere with COLRIP's obligation as a training organization to evaluate the performance of apprentices and trainees and to make recommendations about licensure.

V.

IT IS FURTHER ORDERED that COLRIP shall:

A. Within thirty (30) days after the date on which this order becomes final, distribute a copy of the complaint, the order, and the notice set out in Appendix A to the order, to each of its officers, members, marine pilot trainees, and employees, and a copy of the complaint, the order, and the notice set out in Appendix B to the order, to the Columbia River Steamship Operators Association; and
 
B. For a period of ten (10) years after the date on which this order becomes final, furnish a copy of the complaint, the order, and the notice set out in Appendix A to the order, to any new officers at the time they are elected, any new members at the time they become members, any new marine pilot trainees at the time they become trainees, and any new employees at the time they are hired.

VI.

IT IS FURTHER ORDERED that COLRIP shall:

A. Sixty (60) days after the date on which this order becomes final, annually for the next ten (10) years on the anniversary of the date this order becomes final, and at other times as the Commission may require, file a verified written report with the Commission setting forth in detail the manner and form in which the respondent has complied and is complying with Paragraphs II, III, IV and V of this order;
 
B. For a period of ten (10) years from the date this order becomes final, notify the Commission at least thirty (30) days prior to any proposed change in respondent COLRIP, such as dissolution, assignment or sale resulting in the emergence of a successor, or the creation or dissolution of subsidiaries or any other change that may affect its compliance obligations arising out of this order; and
 
C. For a period of ten (10) years after the date on which this order becomes final, notify the Commission within thirty (30) days after the respondent forms, participates in the formation of, or joins any joint venture for the provision of marine pilotage on the Columbia and Willamette River Pilotage Ground. This paragraph does not require notification when a marine pilot joins COLRIP as a member of COLRIP.

VII.

IT IS FURTHER ORDERED that, for the purpose of determining or securing compliance with this order, upon written request, respondent shall permit any duly authorized representative of the Commission:

A. Access, during office hours and in the presence of counsel, to any facilities and access to inspect and copy all books, ledgers, accounts, correspondence, memoranda and other records and documents in the possession or under the control of respondent relating to any matters contained in this order; and
 
B. Upon five days' notice to respondent and without restraint or interference from it, to interview officers, directors, or employees of respondent in the presence of counsel.

VIII.

IT IS FURTHER ORDERED that this order shall terminate on March 1, 2019.

By the Commission.

Donald S. Clark
Secretary

SEAL

ISSUED: March 1, 1999