FOR IMMEDIATE RELEASE                                          AT
THURSDAY, AUGUST 22, 1996                          (202) 616-2771
                                               TDD (202) 514-1888

   JUSTICE DEPARTMENT STOPS VIRGINIA WINE & SPIRITS IMPORTERS'
   ASSOCIATION FROM IMPOSING AN ADDITIONAL COST ON COMPETITORS

     WASHINGTON, D.C. -- Universal Shippers Association, one of
the country's largest wine and spirits importers' association,
will end its discriminatory shipping rate practices, under a
settlement reached today with the Department of Justice.  The
Department said that the practice put small importers of wine and
liquor at a competitive disadvantage.

     The Department's Antitrust Division filed a lawsuit to
challenge an agreement between Universal, based in Bedford,
Virginia, and the Lykes Bros. Steamship Co. Inc., a major carrier
of wine and spirits headquartered in Tampa, Florida.  The
challenged agreement required Lykes 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. 

     In September 1995, the Department settled charges against
Lykes for its involvement in the agreement.

     In the suit filed in U.S. District Court in Alexandria,
Virginia, 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 northern Europe to the United
States.

     Anne K. Bingaman, Assistant Attorney General in charge of
the Department of Justice's Antitrust Division, said, "This
unfair tax-like charge to Universal's competitors, made it harder
for them to bring wine and spirits into the United States at
lower prices."  

     The consent decree prohibits Universal 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, Universal 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.  Universal 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, Suite 500, U.S. Department of
Justice, 325 Seventh Street, N.W., Washington, D.C.  20530. 
Telephone: 202/307-6351.
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