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I think I ought to say that due to the shortness of time there has been no opportunity on our part to confer with the Bureau of the Budget concerning this statement, and we are not able to state whether what has been said and what will be said by my associates is in accord with the policies of the President.

Senator REED. This committee will not make a point of that. Mr. AITCHISON. This is the exhibit that I said I would present:

AVERAGE AGREEMENT

FORTY-EIGHT HOURS FREE TIME ALLOWED (EXCLUSIVE OF SUNDAYS AND LEGAL HOLIDAYS EXCEPT FOR DETENTION AFTER DEBIT DAYS)

From December 11, 1916, to April 30, 1917.-One credit allowed if car released within the first 24 hours. After the expiration of free time one debit per car for the first day; two debits for the second day; three debits for the third day; five debits for the fourth day; and five debits for the fifth day. Detention thereafter at the rate of $5 per car per day. Excess debits charged for at the rate of $1 per debit.

From May 1, 1917, to February 9, 1918.-One credit allowed if car is released within first 24 hours. After the expiration of free time one debit per car per day for each of the next 5 days. Detention thereafter at the rate of $5 per car per day. Excess debits charged for at the rate of $2 per debit.

February 10, 1918, to July 19, 1919.-One credit allowed if car is released within first 24 hours. After the expiration of free time one debit per car for each of the next 4 days. Detention thereafter at the rate of $6 for each of the next 3 days and $10 per car per day thereafter. Excess debits charged for at the rate of $3 per debit.

July 20, 1919, to March 27, 1938.-One credit allowed if car is released within the first 24 hours. After the expiration of free time one debit per car per day for each of the next 4 days. Detention thereafter at the rate of $5 per car per day. Excess debits charged for at the rate of $2 per debit.

March 28, 1938, to June 30, 1942.-No change, except that detention was charged for at the rate of $5.50 per car per day and excess debits at the rate of $2.20 per debit.

Effective June 1, 1942.-One credit allowed if car is released within first 24 hours. After the expiration of free time one debit per car for each of the next 4 days. Detention thereafter at the rate of $5.50 per car per day. At the end of each calendar month the total applicable credits will be deducted from total debits at the ratio of two credits for one debit. Excess debits charged for at the rate of $2.20 per debit.

Special average agreement rules are in force at Lake Erie, Lake Ontario, and tidewater ports on commodities for transshipment to vessel.

Free time allowed for unloading cars at the ports is treated differently than under the uniform code of demurrage rules at interior points. Under the latter rules 48 hours free time is allowed, and for each car released within the first 24. hours of free time one credit is allowed, no credit if released within the next 24 hours, a debit is charged for each of the next 4 days the car is held, exclusive of Sundays and legal holidays, and at the end of a calendar month the total credits are used to cancel a like number of accrued debits. Excess debits are charged for at $2.20 per debit. Detention subsequent to the fourth debit day is charged for at the rate of $5.50 per day, including Sundays and legal holidays. Under the lake and tidewater rules each car upon arrival at the port to which consigned is credited with "credit days" equal to the number of days of free time allowed. All detention, exclusive of Sundays and legal holidays, is denominated "debit days." At the end of a period, as herinafter shown, the total credits are used to cancel a like number of debits. Excess debits are charged for at $1.10 per debit at the lake ports and $2.20 per debit at the tidewater ports.

Rates and basis for computing charges at the lake and tidewater ports are as follows:

BITUMINOUS COAL AND COKE AND ANTHRACITE COAL

Lake ports

Free time
(credit
days)

Basis for settlement

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July 8, 1907, to Apr. 30, 1910-
May 1, 1910, to Apr. 30, 1911.
May 1, 1911, to June 13, 1912.
June 14, 1912, to June 9, 1915..
June 10, 1915, to Apr. 14, 1916.
Apr. 15, 1916, to May 24, 1917.
May 25, 1917, to Feb. 9, 1918.
Feb. 10, 1918, to Mar. 31, 1919.
Apr. 1, 1919, to Apr. 14, 1936.

Apr. 15, 1936. The commodity descrip-
tion changed to read: "Coal and coke,
crushed stone, gravel, sand, or other
carload freight, when loaded in open-
top equipment."

Apr. 15, 1936, to Mar. 27, 1938..

Mar. 38, 1938, to present date.

7575 LO

5435

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1.00

1.00

1.00

1.00

3.00

1.00

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Charge per excess

Basis for settlement

debit

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BITUMINOUS COAL AND COKE

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Mr. AITCHISON. I have nothing further.

Senator REED. Thank you very much.

Now the committee wants to hear from all these various interests.

STATEMENT OF J. MONROE JOHNSON, COMMISSIONER, INTER

STATE COMMERCE COMMISSION, WASHINGTON, D. C.

Mr. JOHNSON. I address myself to E, F, and G of the letter of Senator Wheeler of June 22.

Question E-The lines of commodities in which the greatest delays in unloading have occurred: The information requested, submitted herewith, is derived from a review of the reports of the Commission's Bureau of Service field employees. This force consists of approximately 50 service agents located at important railroad and industrial centers throughout the United States. Fifteen of these men are regular employees of the Commission, and 35 have been temporarily added to the regular force during this emergency. These field service agents are experienced in railroad-operating matters and are used to promote railroad-operating efficiency, including the prevention of car detention at railroad yards, terminals, at industrial plants, Army camps, and naval and air bases.

Approximately 11,600 form reports have been made by service agents to the Washington office for the period July 1, 1941, to June 25, 1942. These reports have been carefully studied, tabulated, and totaled and indicate that the lines of commodities in which the greatest delays have occurred (we have not distinguished between loading and unloading, for such distinction is impractical) are as follows in the order named.

I might say, when I say "The lines of commodities in which the greatest delays in unloading have occurred," the list is led by shipyards and I might say commodities involved at shipyards.

Senator REED. Mr. Commissioner, perhaps you have already anticipated it. I was going to ask you later for a report upon delays or detentions in camps and ports and ordnance plants, and so forth, by the Army authorities and by the Navy where they are responsible. In other words, we want to ask these departments to expedite their loadings and unloadings, just the same as we are asking private shippers to do; and if you have not that information we are going to make a request on you for it either you or the railroads-to furnish us information as to delays in loading and unloading war materials by the Government.

Mr. JOHNSON. I might say, Mr. Chairman, that we should be glad to do that, and I am sure the railroads will too, but we do not hesitate to embargo a shipyard any more than we do a receiver of perishables. Senator REED. I am glad to hear that.

Mr. JOHNSON. And in fact we either did embargo a shipyard or came so near that it relieved the pressure immediately.

Senator REED. When I was discussing the transportation question upon the floor of the Senate somebody asked me the question about charging the Government demurrage, and I told them I did not see any reason why the Government should not pay demurrage just the same as a private shipper. If the Government is depriving sombeody of transportation facilities because of delays due or undue delays-it ought to pay for it.

Mr. JOHNSON. We make no distinction.

Senator REED. Yes.

Mr. JOHNSON. Resuming, the lines of commodities in which the greatest delays in unloading have occurred are in the order named:

Shipyards; scrap; warehouses; perishables and staples; miscellaneous; petroleum and petroleum products; iron and steel; forest products; cans, bottles, and containers; grain and feed; coal and coke; Army

camps.

The statement with respect to shipyards, warehouses, and Army camps relates to all commodities shipped to these points, including construction materials. Because of our interpretation of "destination," we consider "commodities" a more appropriate classification of shipyards, warehouses, and Army camps, and have included them under that heading. The 11,600 reports already referred to cover 1,598,500 cars, which is a small number compared with the total number of cars handled in the period, but is, we believe, sufficient to give a result fairly dependable. The very business of our field representatives, of course, is to prevent car detention. Necessarily their time is almost exclusively devoted to the worst offenders. As we are reporting on the greatest abusers of car usage the comparison shown, of course, is confined to that class.

Question F.-The destinations at which most numerous delays occur: While we have information concerning most of the important cities of the United States, the offense of delay will vary among the cities and in accordance with the commodities considered, so we are replying to Question "F" considering destinations as certain districts of the United States, which are the districts to which our field representatives are assigned. The comparative extent of abuses varies in the districts in the order named. The greatest average demurrage per car held beyond free time was district No. 2, headquarters in New York City, and the remaining districts in the order named:

District 1, headquarters, Boston, Mass.; district 3, headquarters, Rochester, N. Y.; district 15, headquarters, San Francisco, Calif.; district 7, headquarters, Detroit, Mich.; district 4, headquarters, Washington, D. C.-and the worst delay here has been on coal, and the worst of the coal here has been the Government coal; district 8, headquarters, Chicago, Ill.; district 14, headquarters, Portland, Oreg.; district 10, headquarters, Kansas City, Mo.; district 6, headquarters, Louisville, Ky.; district 5, headquarters, Jacksonville, Fla.; district 12, headquarters, Denver, Colo.; district 11, headquarters, Dallas, Tex.; district 13, headquarters, Minneapolis, Minn.; district 9, headquarters, New Orleans, La.

If the committee desires a comparison of detention as to cities and commodities thereat, the information will be furnished the committee. There has not been time to make such a statement.

Car detention has fluctuated greatly within different localities during the past year. Great changes have taken place in our transportation picture as a result of the war. Demurrage for the State of New Mexico in May 1941 when 2,264 cars were reported, was $314.60. In April 1942 when 2,691 cars were reported, the demurrage was $18,771.70. This large increase was due to the amount assessed at the new Wingate Ordnance Depot, Gallup, N. Mex. War activities have greatly increased in some sections that previously were not heavily industrialized. These emergency and varying conditions have required that we transfer from time to time our field force from one point to another.

The following are examples of recent decreases in car detention at a number of places throughout the country:

At a point in Boston the demurrage assessed in January 1942 was $1,080.90 but for the first 16 days in March was reduced to $15.40, and at Minneapolis a brokerage company had $439.50 demurrage charges in January 1942 and only $171.60 in February.

The Enid, Okla., plant of a large flour milling company in April and May 1942 handled 711 cars, many of these being released within 7 hours, and only 4 out of the 711 were held beyond 1 day.

At a shipbuilding plant in Portland, Maine, the car detention is as follows: January 1942, 281 cars handled, 170 cars held beyond free time; demurrage $748. March, 252 cars handled, 93 held beyond free time; demurrage $209. April, no demurrage. May, 288 cars handled, 93 held beyond free time; demurrage $7.70.

Pacific Coast Demurrage Bureau assessed the following demurrage against Southern Pacific patrons at Los Angeles: April 1941, demurrage $9,946.20; April 1942, demurrage $4,752.50; May 1941, demurrage $10,209.20; May 1942, demurrage $2,681.90.

On the Union Pacific: May 1941 on 5,724 cars handled, demurrage $2,255; May 1942 on 6,001 cars handled, demurrage $1,769.90.

Our reports show as to a large shipbuilding corporation in California: April 1942 on 198 cars handled, demurrage $479.60; May 1942 on 725 cars handled, demurrage $99.

At Kansas City, Mo., in June 1942 a check of 130 industries showed only 13 industries detaining cars beyond the free time.

At Memphis, Tenn., recent car detention by a steel company was as follows: April, 261 cars handled, 134 cars held beyond free time; demurrage $2,446.40; May, 146 cars handled, 68 cars held beyond free time; demurrage $573.30.

At Toledo, Ohio, records for an automobile plant show: March, 2,359 cars, 669 cars held beyond free time; demurrage $1,375; April 1,818 cars, 316 cars held beyond free time; demurrage $148.50.

Then it switched over from automobiles to war production, and in May it had 1,650 cars handled, 534 cars held beyond free time, and their demurrage went up to $3,063.50. This increase was due to an automobile plant changing its product from automobiles to war production.

At St. Louis, Mo., demurrage assessed on the Terminal Railroad shows: April 1941, $5,185.40; April 1942, $3,759.80; May 1941, $5,627.70; May 1942, $2,659.80.

At Kansas City, Mo., demurrage assessed by months in 1942 was as follows: January, $8,762.60; February, $8,177.60; March, $6,275,60; April, $3,749.20.

At Pueblo, Colo., demurrage assessed at a steel plant was as follows: February 1942, 6,661 cars, 1,424 beyond free time; demurrage $605. March 1942, 9,361 cars, 1,361 beyond free time; demurrage $484. April 1942, 9,961 cars, 1,186 beyond free time; demurrage $176. May 1942, 11,291 cars, 1,657 beyond free time; demurrage $481.80.

At a Toledo, Ohio, warehouse: January, demurrage $1,097.80; February, demurrage $566.50.

At a Bridgeport, Conn., manufacturing company: December, demurrage $1,382.80; January, demurrage $1,559.80; February, demurrage $88.

Senator REED. Mr. Johnson, may I break in on you a moment here? Mr. JOHNSON. Yes, sir.

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