Senator Johnson issued his press release in connection with this hearing I said for myself, of Senate Joint Resolution 147: The country needs all the freight cars it has for active use. Detention of cars for unloading beyond the free time should be reduced 50 percent. We intend to ask the railroads, the Interstate Commerce Commission, the Office of Defense Transportation, and the shippers to help formulate a program that will accomplish that purpose. If that is not done by cooperation the only alternative would be to do it by legislation. We prefer voluntary cooperation. We will go the legislative route only as a last resort. That is my view of the question. Nobody here seriously proposes legislation except as a last resort in the event the Commission is either too slow or unable to get results, or the shippers do not voluntarily cooperate, or the railroads do not cooperate to a point that accomplishes this purpose. That is why we are going to hold this record open. That is why we are going to call on you and the railroads for reports in about 3 months to see what you have actually accomplished; and I assure you that if voluntary action has accomplished the result, this resolution will never be heard of again; and if it has not, I warn you right now, it goes back to the full committee with the history of this whole proceeding, for whatever the full committee wants to do. Mr. JOHNSON. Senator, Senate Joint Resolution 147 has paid its way already. Senator REED. All right. That is what I told Mr. Eastman in our talk. Mr. AITCHISON. I want to say one word, if I may, Senator. Senator REED. Certainly. You know, lots of times I have had to argue cases before you, Mr. Chairman, and you looked over the bench and scared me to death. Now go ahead. Mr. AITCHISON. It seems to me to be a sort of thought here that nothing except the demurrage charge is going to compel the release of cars. There are other factors that are involved. One is whether or not the demands by shippers for cars of a particular type are all of equal moment. In other emergencies it has been necessary for the Government to step in, as I think it is stepping in today, and issue priorities with respect to the use of cars, even to the extent of forbidding use of cars of a particular type for certain classes of service. That is one way whereby cars may be secured for the more essential purposes. The other is by a restriction of the manufacture or the utilization. That, of course, is entirely beyond the power of this Commission to control; we have no voice in that whatever. Senator REED. You mean priority, now, on materials necessary? Mr. AITCHISON. Yes. A third thing that is completely beyond the control of the Commission is found in the case of shipments at the lake ports or tidewater, and that is the matching in of the maritime service with the land service. That is particularly applicable with respect to the open-top cars, concerning which you have expressed such concern; and unless there is a coordinated matching in and the coordination is carried out by the maritime part of the service as well as by the rail part of the transportation system, we are going to have rail transport facilities tied up, and there is nothing that we can do about that. Senator REED. Do you mean that maybe Mr. Eastman might do something about that? Mr. AITCHISON. I think he is doing very much about it. If I read correctly what is going over my desk every day as a liaison officer and the reports that come to me, I think very great progress is being made. The subject is being approached most intelligently and very vigorously; and, with a large and competent staff to deal with it, well specialized, I should expect results on all the matters that I have mentioned. And then, of course, I think even more than demurrage itself is the general sentiment that exists, as Commissioner Johnson has indicated, in a most high degree, and I shall have to pay tribute to it; an utmost willingness to accept a hint from a responsible agency as equivalent to a demand at the present time; and people are breaking their necks and incurring financial responsibilities and working their heads off in the national effort, to release equipment, in a way, certainly, that they did not do either in the last war or in the great car shortages of 1920 and 1922 that I knew very intimately. Senator TUNNELL. The Chairman stated that the procedure was for the railroads to file certain schedules with the Interstate Commerce Commission. Mr. AITCHISON. That is the normal procedure, yes. Senator TUNNELL. Normal. Which are approved or acquiesced in; is that right? Mr. AITCHISON. Which are just ordinarily acquiesced in, or unless they are suspended. Senator TUNNELL. Suppose the Interstate Commerce Commission has an idea of what should be done that is not done with reference to those schedules; what is your procedure? Mr. AITCHISON. Coming to the question before us, of demurrage, I will say that since 1909 there has been a most close contact at all times between the Interstate Commerce Commission and the organizations of the rail carriers and the shippers with respect to demurrage. It has been a continuing proposition that the subject of demurrage has been before us. When anyone has any suggestion for a change, whether it is the carrier or a shipper or the Commission—and all three of us have made the suggestions-there is a close contact and it has worked out normally in such a way that there is a minimum of formalism necessary to put the decision into effect. I spoke of it in my statement as a "consensus," and that is what it was. Senator TUNNELL. And does the Interstate Commerce Commission have authority to require any change? Mr. AITCHISON. Oh, yes. Senator TUNNELL. And does it ever do that? Mr. AITCHISON. Yes; we have done that. For instance, with respect to the $10 charge imposed on lumber by the Director General during the war, in the Edward Hines case that went to the Supreme Court of the United States the Commission ordered that canceled. Senator TUNNELL. That was a case of reduction. Has it ever raised the demurrage? Mr. AITCHISON. Yes; we did. In the Ex parte No. 123 we increased it 10 percent. Senator TUNNELL. By your own motion? Mr. AITCHISON. As part of the general rate increase. Senator REED. I believe you said, Mr. Chairman, that in making the application for increased rates the carriers specifically exempted demurrage charges. Mr. AITCHISON. They did, I believe, in every case except Ex parte No. 123; either that or, if the generality of the language of their application covered demurrage, when it came to the presentation the subject was ignored. Mr. JOHNSON. There are very many other points besides demurrage that have great effect on car supply. For instance, about a year ago we enunciated these 10 points: 1. Provide that Sundays and holidays be eliminated from demurrage rules as free time, thus stimulating the loading and unloading of cars 7 days a week where practicable and possible. 2. A curtailment in the privilege of the routing of carload freight by shippers, which created quite a storm of protest because apparently it was thought that a mere railroad shipping clerk would select the routing. We had no such idea. 3. The elimination or curtailment to the greatest possible extent of the present average demurrage agreements. That has been curtailed and presently will be curtailed, I have no doubt, more. 4. Curtailment to the greatest possible extent of the use of cars in interplant and intraplant service. That has been reduced. 5. A general increase in the present demurrage rates. These were brought to the attention of these gentlemen nearly a year ago. 6. An alteration in the present method of computing demurrage and free time from 7 a. m. to 12 noon, to catch more cars for loading of coal. 7. Changes involving the pooling of coal for movement at tide water and lake ports and in the holding of unbilled coal at mines. Now they have reduced those varieties and sizes of coal tremendously at the tidewater and the lakes, and the detention there has gone down tremendously. 8. A reduction in the free time of coal cars held at lake and tidewater ports with an increase in demurrage charges. All of those things are taking place, and if they do not improve we will take steps to improve them. Senator REED. Fine. Mr. JOHNSON. 9. Increased demurrage rates on grain held at tidewater and at lake ports and increased charges for storage of grain when held in cars at those points. Senator REED. But let me break in on you there, Mr. Commissioner. Mr. JOHNSON. Yes. I had an idea that on the grain you would break in. 10. Require greater utilization of equipment by loading cars to more nearly their visible or weight-carrying capacity. That has been done surprisingly. The index of carloadings today is no longer an index. For the first time in history, during the first 3 months of this year, spring, the burden of the railroads has exceeded that of the preceding fall 3 months. I have taken the last current weekly report of carloadings and have superimposed the curve for the first 3 months of 1942 on the curve for the last 3 months of 1941, and, while the 1942 curve is far below the 1941 curve in carloadings, the transportation involved is far greater. This shows that carloadings may no longer be considered an index for railroad accomplishment. Cars are loaded more heavily and transported at greater speed in bigger trains and for greater distances and turned around at destination with far less delay. Senator REED. Mr. Commissioner, as you know, the weekly reports that are put out as to car loadings have a distorting factor that is not recognized, and that is particularly in the loading of less-than-carload freight. Mr. JOHNSON. Of course. Senator REED. The loading of less-than-carload freight is averaging about 60,000 to 65,000 cars a week less than it was a year ago. Mr. JOHNSON. Yes, sir. Senator REED. And it throws the total figures out of line. Senator REED. If anyone really looks at the totals he gets a wholly incorrect impression of what is actually going on, because of that one factor if nothing else. Mr. JOHNSON. He certainly does. May I put this in the record? Senator REED. Yes; we shall be very glad and happy to have you do so, and we thank you for it. (The document referred to is as follows:) JUNE 26, 1942. BUREAU OF SERVICE, INTERSTATE COMMERCE COMMISSION, REVENUE FREIGHT LOADED Loading of revenue freight for the week ended on June 20, 1942, totaled 844,913 cars, which was an increase of 12,187 cars or 1.5 percent above the preceding week this year; but a decrease of 40,626 cars or 4.6 percent below the corresponding week in 1941. It was, however, an increase of 116,420 cars or 16 percent above the same week in 1940. From January 1 to June 20, the aggregate loading was 19,800,643 cars in 1942, 18,573,625 in 1941, and 15,806,133 in 1940. CARS LOADED WEEK ENDED ON JUNE 20, 1942, AND CORRESPONDING WEEKS OF 1938-41 1 54, 707 116, 420 12, 668 1 481 25, 064 1 65, 690 171, 127 12, 187 1 40, 626 Mr. JOHNSON. When we go back 2 years ago, the prophets, men high in the transportation world, said the railroads would be unable to carry the 1941 load which they also prognosticated. The transportation burden was greater than they estimated, and, with 600,000 less freight cars than in 1929, the railroads transported it with ease and without complaint to the confusion of the prophets, but since 1941, Mr. Chairman, there has been thrown an additional burden on the railroads that many men in transportation do not now realize, all of which is in addition to the increased production of 1942 over 1941: Petroleum formerly transported to the East in tankers is now transported by rail, now running about 750,000 barrels a day. Coal to New England that has heretofore been transported largely in colliers is involving an additional 16,000,000 tons this year to New England by rail. All of the east coastwise shipping, including perishables, of which sugar alone is 150 cars per day. All South American imports and exports and the Gulf transportation formerly by water, now by rail. All western lumber and other commodities formerly through the Canal to the East. The larger part of Canadian exports and imports to the Northeast formerly by water, now by rail, including munitions that now have to go to Canada. Troop movements that were 200,000 last October were 800,000 in May 1942. The Army in October 1941 was 1,300,000, and is expected to be 4,500,000 this fall and will require 4,500 cars per day for maintenance. Passengers in the first 3 months of 1942 exceeded by 15,000,000 the same period of 1941. The revenue ton-miles for the 3 months ending March 1942 were 30,000,000,000 greater than for the same period of 1941. Coal moving on the Great Lakes has been to some considerable extent transferred to the rails to provide for a greater movement of ore from the head of the lakes. Senator REED. Why is that? Of course your coal moves up the lakes in the opposite direction from the ore. Is that to permit a quicker turn-around? Mr. JOHNSON. Yes, sir; because the ore boat that loaded with coal would make a loop and stop to unload is instead sent right back empty. Senator REED. I am wondering if the emergency is great enough to require that, because, after all, there is quite a sacrifice in transportation. It would take, of course, some time to load and unload, but Mr. JOHNSON. We discussed that with O. D. T. very carefully, and from that standpoint it is being watched carefully. Senator REED. Just offhand a question arises in my mind as to that. Mr. JOHNSON. Of course it does, and it does in Director Eastman's mind too. Senator REED. We do want to move along, and this is an awfully interesting discussion. Mr. JOHNSON. Yes, sir. Senator REED. I may get lost in it myself, you know, at times. |