Price Fixing
Charged By FTC
A charge of conspiracy and co
ercion in the fixing of the price
« raw king crab in the Kcdiak
area against the United Fishermen
of Alaska, and the Kodiak Fish
Products Association, was the ver
dict of a Federal Trade Commis
sion Examiner, in a ruling handed
down this week. The Fishermen s
Union is an affiliate of the Sea
farers International Union of
North America.
Hearings were held here last
year. Prior to that witnesses were
called in Seattle. Named in the
examiner’s order were the follow
ing officers of the United Fisher
men of Alaska: Eldon Lester, pres
ident; P. J. Kerrigan, secretary
treasurer; Charles Warren, Russell
Attwood and Alfred Levine, execu
tive board members, and the fol
lowing officers and directors of
Kodiak Fish Producers Assn.; W.
A Cannon, Dal Valley, Barney
Corgatelli, A. K. Cichoski, Ray
Heinrichs and Thomas Clampffer.
Also named in the conspiracy
finding were three, canners, two
of which—Island Seafoods, Inc.,
Seattle and King Crab, Inc., Ko
diak—agreed earlier to accept a
consent order.
The third cannery, Kodiak Sea
Foods Packing Co., Kodiak, did
not answer the commission’s
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charges and was subject to a de
fault order issued by the examiner
today.
The examiner, William L Pack,
found that the union and the as
sociation also used coercive meth
ods against a fourth canner who
refused in 1954 to pay the fixed
prices for crabs.
The examiner’s order specifical
ly prohibits the union and the as
sociation from efforts to (1) fix
or attempt to fix any price at
which king crab or crab meat is
to be bought or sold; (2) jointly
or collectively negotiating as to
any such price; (3) prevent mg or
attempting to prevent any person
from accepting or retaining em
ployment in a cannery or other
establishment with the purpose or
effect of causing the establish
ment to maintain any particular
price.
The canning of king crab, which
weigh Ifpm 8 to 20 pounds each, is
a relatively new industry which
sprang up in the Kodiak area
about five years ago. The annual
wholesale value of the pack is be
tween two and three million dol
lars.
Although the association repre
sents boat owners or captains, the
examiner said he found little to
distinguish it from the1 union.
Members of the association, he
said, were formerly members of
the union and its principal officers
had been the principal officers of
the union.
“It is difficult to escape the im
pression," Pack said, “that the
purported separation of boat own
ers and crew members was more
technical than real; that actually
the union is continuing to fix
prices, using the association as a
means to that end."
The examiner said negotiations
between the union and association
and the canners since 1932 have
resulted in a fixed price paid by
the canners to the vessel owners
for live crabs. The price in 1954
and 1955 was 9V4 cents a pound
Pack said coercive tactics were
used against the Wakefield Fish
eries, Port Wakefield, Alaska, in
1955 when the cannery refused to
pay more than eight cents a pound.
Evidence received at hearings
In Washington State and Alaska,
the Examiner said, showed that
Wakefield officials were told by
an association official that unless
the cannery paid the higher price
it would not be allowed to operate,
would not get crabs, would have
trouble with the union and with
its gear.
Pack said the differences be
tween the union and the cannery
were “in no sense a ‘labor dispute’
involving wages, hours? working
conditions, etc.,” but rather an at
tempt “to maintain and enforce . .
(an illegal) combinaion through
coercion.”
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