Royal Caribbean Incorporated in Liberia - Is that safer than United Arab Emirates?

Only 17% of Americans believe that control of 6 major American ports should be given to the United Arab Emirates. Perhaps Americans should think twice before becoming sharholders or customers of Royal Caribbean Cruise Lines (RCCL) since they are incorporated in Liberia and controlled by families form Norway and a partnership in the Bahamas. Would you entrust the safety and security of your loved ones to a Liberian Corporation?

47 persons have gone overboard on cruise ships since the year 2000. [http://www.cruisejunkie.com/Overboard.html]
Most of these incidents have been charactarized by faulty, incompetent investigations or cover ups by the cruise lines. The cruise companies have made little or no effort to prosecute or prevent crimes that occur on cruise ships. See http://projectsafecruise.blogspot.com/ for a possible solution.

The folowing statements appear in the Form 10-K filed by RCCL with the Security and Exchange Commission on February 24, 2006:

We are not a United States corporation and our shareholders may be subject to the uncertainties of a foreign legal system in protecting their interests.

Our corporate affairs are governed by our Restated Articles of Incorporation and By-Laws and by the Business Corporation Act of Liberia. The provisions of the Business Corporation Act of Liberia resemble provisions of the corporation laws of a number of states in the United States. However, while most states have a fairly well developed body of case law interpreting their respective corporate statutes, there are very few judicial cases in Liberia interpreting the Business Corporation Act of Liberia. For example, the rights and fiduciary responsibilities of directors under Liberian law are not as clearly established as the rights and fiduciary responsibilities of directors under statutes or judicial precedent in existence in certain United States jurisdictions. Thus, our public shareholders may have more difficulty in protecting their interests with respect to actions by management, directors or controlling shareholders than would shareholders of a corporation incorporated in a United States jurisdiction.

We are controlled by principal shareholders that have the power to determine our policies, management and actions requiring shareholder approval.

As of February 10, 2006, A. Wilhelmsen AS., a Norwegian corporation indirectly owned by members of the Wilhelmsen family of Norway, owned approximately 20.4% of our common stock and Cruise Associates, a Bahamian general partnership indirectly owned by various trusts primarily for the benefit of certain members of the Pritzker family and various trusts primarily for the benefit of certain members of the Ofer family, owned approximately 15.8% of our common stock.

Royal Caribbean IS PROUD (and enriched) to be UnAmerican:

NO SHIRT! NO SERVICE!

NO TAXES! NO FREE SERVICES!

I would bet that over 95% of the passengers on RCCL are Americans. I would not call that "incidental." Maybe if we all got dual citizenship between the U.S.A. and Liberia, we could all avoid paying income taxes. Since Royal Caribbean and Carnival are exempt from paying income taxes to the U.S., should they also be exempt from receiving free services from the U.S. Coast Guard, the FBI, Customs, U.S. health agencies, U.S departments that maintain the safety and security of the ports, etc? I believe we should be charging all cruise line companies some hefty fees for all of the American services they receive for free. Avoiding American income taxes lets Carnival and Royal Caribbean keep another half billion dollars in profits, giving these foreign corporations more money to interfere with the American political process by funneling millions of dollars into lobbying efforts and campaign donations. This prevents any meaningful legislation from being passed that might increase their taxes, port fees, or safety and security responsibilities. That's why they have little liability for the 47 people who went overboard since the year 2000 and why few if any of the hundreds of sexual assaults or robberies ever result in indictments or convictions.

On his MSNBC show Joe Scarborough stated that Cruise ships should be required to be flagged in the United States if they have American Ports of call. Unfortunately, this will never happen. They don’t even pay taxes. Will Carnival provide better safety and security for those housed on board the ships contracted by FEMA for six months than they do for regular cruises? It might be worth interviewing some of the people staying on board for several months. Carnival, which is headquartered in Miami but incorporated for tax purposes in Panama, paid just $3 million in income tax benefits on $1.9 billion in pretax income last year, according to company documents. This is the same as if I made $100,000 last year and only had to pay $75.00 in taxes. "That's not even a tip," said Robert S. McIntyre of Citizens for Tax Justice. U.S.Companiess in general pay an effective income tax rate of about 25 percent, analysts say. That would have left Carnival with a $475 million tax bill. No wander the FBI does not want to investigate incidents on Carnival ships. If Carnival paid the $475 million in taxes they should pay, the FBI could afford to have an agent on each cruise to monitor safety and security. (Personally, I believe that state, local, and Federal government agencies should not give any contracts for Hurricane repairs or anything else or do business with any companies that have headquarters outside the United States and funnel their profits off shore to avoid taxes)

$236 Million Cruise Ship Deal Criticized
By Jonathan Weisman , Washington Post Staff Writer
Wednesday, September 28, 2005

...the Carnival deal has come under particular scrutiny. Not only are questions being raised over the contract's cost, but congressional investigators are examining the company's tax status. Carnival, which is headquartered in Miami but incorporated for tax purposes in Panama, paid just $3 million in income tax benefits on $1.9 billion in pretax income last year, according to company documents. "That's not even a tip," said Robert S. McIntyre of Citizens for Tax Justice. U.S. companies in general pay an effective income tax rate of about 25 percent, analysts say. That would have left Carnival with a $475 million tax bill.
Carnival's public records boast "that substantially all of our income in fiscal 2004, 2003 and 2002 . . .Is exempt from U.S. federal income taxes," largely because it maintains that its operations are not in the United States but on the high seas.
Carnival does not want to see that tax status jeopardized just because three major ships are clearly operating in the United States. After it won the FEMA bid, Carnival appealed to Treasury Secretary John W. Snow for a waiver of U.S. taxes. "We do not want to jeopardize our tax exemption, nor do we want to interrupt our relief efforts for failure to secure this assurance from the Treasury Department," wrote Howard Frank, Carnival's chief operating officer.
Cruise line council President Crye said the company will reduce its billings under the contract by the amount of income taxes forgiven. The waiver would spare Carnival and its employees the paperwork of filing tax returns.
But critics say Carnival deserves to be treated no differently than a hotel housing relief workers under a FEMA contract. "Carnival should be contributing to the relief effort just like all other taxpayers are," McIntyre said. "Why should they be singled out for special treatment, just because they've been so good at tax avoidance in the past?"

{The following statement appeared in the Form 10-K filed by Royal Caribbean (RCCL} with the Security and Exchange Commission on February 24, 2006}

A change in our tax status under the United States Internal Revenue Code may have adverse effects on our income.

We and a number of our subsidiaries are foreign corporations that derive income from a United States trade or business and/or from sources within the United States. Drinker Biddle & Reath LLP, our United States tax counsel, has delivered to us an opinion, based on certain representations and assumptions set forth in it, to the effect that this income, to the extent derived from or "incidental" to the international operation of a ship or ships, is exempt from United States income tax pursuant to Section 883 of the Internal Revenue Code. We believe that most of our income (including that of our subsidiaries) is derived from or "incidental" to the international operation of a ship or ships.

5 Cruise Ship Employees Die under Suspicious Circumstances in Last 4 Weeks

Journalists should ask for copies of law enforcement investigations to rule out foul play. Were they involved in criminal activites or did they know too much? Five deaths in four weeks seems like more than just coincidence.

Search over for female crewmember lost at sea on Feb 19, 2006 - Honolulu Star-Bulletin, HI

http://www.cruisejunkie.com/Overboard.html
A female crewmember went overboard on the Norwegian Jewel also on February 19, 2006.

dailybreeze.com 02/01/2006: Authorities said Capt. Joern Rene Klausen was found in his stateroom at approximately 4:15 a.m. Monday, according to a statement issued by Royal Caribbean International, which operates the 2,700-passenger cruise ship. "The death appears to be from natural causes and authorities in Los Angeles will conduct an autopsy," the statement said.

The Virgin Islands Daily News 1/28/06:
Blair Shannon, 46, was gunned down Jan. 19 by an intruder who entered his Best Western Carib Beach Resort hotel room through an unlocked door. The cruise ship entertainer and native of Cincinnati, Ohio, was killed during what appears to have been a robbery gone bad. Security and safety is a concern during shore excursions as well.

Ohio congressman intervenes in Virgin Islands murder case [Akron beacon Journal, DAVID HAMMER, Associated Press]
U.S. Rep. Steve Chabot wrote to Gov. Charles Turnbull on Friday and asked why police on St. Thomas have no suspects in the Jan. 19 killing of Blair Shannon. The letter asks Turnbull to "work to swiftly bring justice in this case" and do more to update Shannon's family on the investigation

Drug dealers recruit passengers & employees on cruise ships to smuggle cocaine: Agents found drugs on at least 20 cruise liners

January 26, 2006:
Drugs: Heroin
Amount: 2.2 pounds
Value: $40,000
Number Arrested: 1 Crew Death In Cabin
Details: 30 year old waiter was found dead in his cabin. Cabin was searched, 2 packages of heroin were found wrapped in a white t-shirt stashed in the bed's headboard, onboard the Caribbean Princess cruise ship, Princess Cruise Line.

Families of Those Victimized by Cruise Lines Unite to Launch International Cruise Victims' (ICV) Organization

MIAMI, Feb. 24 /PRNewswire/ :
Press Release
The families of those victimized on cruise lines and victims themselves are joining together to form an international coalition dedicated to fighting for the rights of those wronged on cruise ships. ICV presents an international front, with members coming from all over the United States and as far away as Australia.
For more information on ICV visit its website at http://www.internationalcruisevictims.org/ .

Multi-Billion dollar corporation donates paltry sum to charity

Multi-Billion dollar corporation donates paltry sum to charity
on behalf of Katherine Louise Calder, foster mother to over 400 children. They could have easily afforded several hundred thousand dollars, especially based on all of the free publicity they will get. Royal Caribbean International Announce Godmother for Freedom of the Seas.

Maybe they should donate several million dollars to charities serving the children and families of their crewmembers, most of whom continue to live in poverty because of the low wages paid by the cruise company:

See floridatoday.com January 31, 2006

Royal Caribbean reported their second consecurtive year of record earnings with net income of $716.0 million, or $3.26 per share, on revenues of $4.9 billion for 2005, compared to net income of $474.7 million, or $2.26 per share, on revenues of $4.6 billion for 2004.

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=rcl&script=410&layout=9&item_id=811875

On February 6, 2006, the Compensation Committee of the RCCL Board of Directors determined the 2005 annual bonus amounts for our "named executive officers" based on the Company’s 2005 results measured against previously established performance goals. The 2005 annual bonus amounts for our named executive officers are as follows: Mr. Richard D. Fain, $2,744,610, Mr. Luis E. Leon, $979,997, Mr. Adam M. Goldstein, $897,356, Mr. Daniel J. Hanrahan, $568,901 and Mr. Brian J. Rice, $548,384.

President Bush United Arab Emirates Port Plan is Insane

President Bush United Arab Emirates Port Plan InsaneBayou Buzz, LA - Feb 20, 2006... years after 9/11, to entertain the idea of turning port security over ... report has revealed the reliable partner status of the United Arab Emirates, According to ... Port deal would give United Arab Emirates company half-ownership ... The News JournalAnti-Arab hostility surfaces over port buyout Progressive.orgPoliticians face off about port control MSNBC

Dayside and Rep. Peter King Take the Proper Side of an Argument ... - News Hounds :

The UAE:

- was one of three countries in the world to recognize the Taliban as the legitimate government of Afghanistan (which King did mention)

- has been a key transfer point for illegal shipments of nuclear components to Iran, North Korea and Lybia.

- according to the FBI, transferred money through their banking system to the 9/11 hijackers- was not, according to the Treasury Department, cooperating in efforts to track down Osama Bin Laden’s bank accounts(Hat tip to ThinkProgress for the initial investigative work!)

Another interesting piece of information that has gotten barely any noticeable play on Fox, or anywhere for that matter, was reported in the New York Times last week:
"In mid-January, President Bush nominated a senior executive of Dubai Ports World, David Sanborn, to run the Department of Transportation's Maritime Administration. Mr. Sanborn had been running the company's operations in Europe and Latin America."

Coming in 2006: PROJECT SAFE CRUISE

Originally Posted 12/28/2005

For more information and recent developments about this project visit:

projectsafecruise.blogspot.com/

Project Safe Cruise will consist of a one week cruise in 2006 that will showcase the type of security and safety system that could be put in place by cruise lines to insure the safety and security of all passengers and crew and at the same time preserve evidence of crimes and/or accidents. On this Maiden Voyage we hope to offer short entertaining seminars and panel discussions by various security experts and perhaps some celebrities, on missing persons, identity theft, date rape, kidnapping, teenage and young child safety, security, safety, and health issues while in other countries or at sea, investment scams for seniors, how to buy art work, etc. We must focus on a postive solution that will benefit all parties involved and prevent future tragedies. This will be a win/win proposition giving all American passengers peace of mind and at the same time reducing crime and saving lives. If you are interested in learning more and perhaps joining the cruise or if you represent the press or would like to sponsor or help plan the cruise please leave contact information in the comments section or send an email to safecruise@hotmail.com. Become a charter member and be a part of history.

Project Safe Cruise could be a win-win solution for parties on both sides of the cruise ship safety issue. Look at it as an outside the box idea that is sort of like pre-event arbitration, a partnership if you will. Even though focusing on prevention is less glamorous and less dramatic than solving crimes, it is more efficient and gratifying, especially if we save one life or reduce the suffering of one family. We must work with the cruise lines to set up a cadre of independent contract employees that would act as security ombudsman who would –

• Know how to deal with a terrorist situation.
• Have the authority to lock down crime scenes and secure the chain of evidence .
• Deal immediately and directly with the FBI, Coast Guard, and other agencies and organizations in all ports of call.
• Provide ongoing security and safety training to crew and travel agents and organizers including shore excursion groups.
• Record and maintain a database of incidents and present some analysis of current procedures and conduct of parties involved and recommend improvements for all.
  

The cadre could be staffed by ex-military and ex-law-enforcement personnel who would get salary and/or some free cruise or vacation packages for their work, kind of like how many campgrounds have frequent campers act as hosts. What works good on land should work good on the water including a Neighborhood Watch or Guardian Angel type system that could include frequent customers, crew members, contract employees, travel agents, etc. Design an Amber Alert system for use on ships. The use of this and an independent cadre perhaps named Sea Marshals would provide the most important factor or element for preventing and solving crimes: TIME. We will contact Congressman Shays or his subcommittee for possible grants to solve the problem by thinking outside of the box?

Attorney for Missing Honeymooner Questions Cruise Passengers' Story

STAMFORD, Conn. -- The attorney for the family of a Connecticut honeymooner who vanished from a cruise last summer is questioning the account of a group of passengers last seen with the missing man. Attorney Brett Rivkind emphasized he was not placing blame but said passengers have offered odd and inconsistent accounts about the hours before George Allen Smith IV of Greenwich disappeared from his Royal Caribbean cruise July 5, 2005. (www.newsday.com by JOHN CHRISTOFFERSEN, Associated Press Writer)

Tumescent Hyperbole: Royal Caribbean Gives Big Bonuses & Orders Largest Cruise Ship

Do they deserve large bonuses when they have not taken any actions to enhance safety and security procedures and prevent future tragedies for passengers and their families?

On February 6, 2006, the Compensation Committee of the RCCL Board of Directors determined the 2005 annual bonus amounts for our "named executive officers" based on the Company’s 2005 results measured against previously established performance goals. The 2005 annual bonus amounts for our named executive officers are as follows: Mr. Richard D. Fain, $2,744,610, Mr. Luis E. Leon, $979,997, Mr. Adam M. Goldstein, $897,356, Mr. Daniel J. Hanrahan, $568,901 and Mr. Brian J. Rice, $548,384.

Click here to view filings with SEC regarding stock options given in February 2006.

No Need to do it better when they can do it BIGGER:
CRUISE junkies can look forward to yet another record-busting megaliner, with Royal Caribbean planning a luxury passenger ship aptly titled Project Genesis. It will be so large it threatens to make the Titanic look like a dinghy. Plans for the new $1.45 billion vessel were announced yesterday, in defiance of an epidemic of disasters that has befallen cruise liners in recent years. (theaustralian.news.com)

Cruise Ship Missing

Friday February 3, 2006 11:31 AM
By SALAH NASRAWI
Associated Press Writer
The Guardian
CAIRO, Egypt (AP) - An Egyptian cruise ship with 1,300 people on board has disappeared in the Red Sea off the Saudi coast, Egyptian maritime officials said Friday.

Having independent security personnel on each cruise ship as proposed by "project safe cruise" could help cruise lines do background checks on crew members and be alert for threatening situations

Royal Caribbean Reports Record Earnings

Royal Caribbean reported their second consecurtive year of record earnings with net income of $716.0 million, or $3.26 per share, on revenues of $4.9 billion for 2005, compared to net income of $474.7 million, or $2.26 per share, on revenues of $4.6 billion for 2004.

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=rcl&script=410&layout=9&item_id=811875

NOW ROYAL CARIBBEAN CAN CERTAINLY AFFORD TO PARTICPATE IN "PROJECT SAFE CRUISE" AND/OR OTHER HONEST EFFORTS TO IMPROVE SECURITY AND SAFETY ON THEIR CRUISE SHIPS FOR MILLIONS OF PASSENGERS

The 38-year-old captain of the Monarch of the Seas cruise ship found dead

dailybreeze.com 02/01/2006

Authorities said Capt. Joern Rene Klausen was found in his stateroom at approximately 4:15 a.m. Monday, according to a statement issued by Royal Caribbean International, which operates the 2,700-passenger cruise ship. "The death appears to be from natural causes and authorities in Los Angeles will conduct an autopsy," the statement said.

Florida Today Exposes Carnival "Sweat Ships": The Under Belly of the Cruise Ship Industry

Sweatships The campaign: "A ship owner can go any place in the world, pick up anybody he wants, on almost any terms. If the owner wants to maximise profit at the expense of people, it's a piece of cake... It's a sweatshop at sea." Paul Chapman, a Baptist minister

Sweatships Press Releases
Life is no holiday for sweatship workers, says new report. 9 September 2002

floridatoday.com January 31, 2006

Imagine leaving your spouse, children and home for 10 months a year to work for tips aboard a cruise ship.That's the choice for thousands of workers on the ships based at Port Canaveral. To support families and gain hope for the future, they work 12 to 16 hours a day, seven days a week for 10 months at a stretch - some for salaries of as little as $75 per month. These low-cost workers from nearly 100 nations are a critical ingredient in an industry that avoids U.S. tax and labor laws and reaps billions in profits every year. To reveal the people and money behind Canaveral's cruise industry, FLORIDA TODAY sent reporter John A. Torres and photographer Craig Rubadoux on a journey around the world.

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