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13. Copy of extracts from report in 1937 of the section of research to the Federal Coordinator of Transportation on the problem of short line railroads.

14. Copy of the testimony of the late Joseph B. Eastman, on December 16, 1937, for the Interstate Commerce Commission on Short Hauls and Through Routes before a subcommittee of the House Committee on Interstate and Foreign Commerce.

15. Copy of extracts showing recommendation by the Interstate Commerce Commission to Congress in its annual reports of 1929, 1930, 1931, 1932, 1933, 1934, 1935, 1936, and 1937, with respect to the removal of limitations on the establishment of through routes.

(The documents referred to have been placed in the committee files.)

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TRANSPORTATION POLICY

DIGEST, ANALYSIS, AND INDEX OF TESTIMONY OF THE

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE HOUSE OF REPRESENTATIVES

EIGHTY-FOURTH CONGRESS

SECOND SESSION

ON

H. R. 6141 and H. R. 6142
BILLS TO AMEND THE INTERSTATE COMMERCE ACT,
AS AMENDED, SO AS TO PROVIDE FOR A STRONGER
NATIONAL TRANSPORTATION INDUSTRY, AND

FOR OTHER PURPOSES
(AND RELATED BILLS)

Printed for the use of the Committee on Interstate and Foreign Commerce

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COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

J. PERCY PRIEST, Tennessee, Chairman 1 OREN HARRIS, Arkansas

CHARLES A. WOLVERTON, New Jersey ARTHUR G. KLEIN, New York

CARL HINSHAW, California
WILLIAM T. GRANAHAN, Pennsylvania ? JOSEPH P. O'HARA, Minnesota
F. ERTEL CARLYLE, North Carolina ROBERT HALE, Maine
JOHN BELL WILLIAMS, Mississippi JAMES I. DOLLIVER, Iowa
PETER F. MACK, JR., Illinois

JOHN W. HESELTON, Massachusetts KENNETH A. ROBERTS, Alabama

JOHN B. BENNETT, Michigan MORGAN M. MOULDER, Missouri

RICHARD W. HOFFMAN, Illinois HARLEY O. STAGGERS, West Virginia JOHN V. BEAMER, Indiana ISIDORE DOLLINGER, New York

WILLIAM L. SPRINGER, Illinois WALTER ROGERS, Texas

ALVIN R. BUSH, Pennsylvania MARTIN DIES, Texas

PAUL F. SCHENCK, Ohio SAMUEL N. FRIEDEL, Maryland

JOSEPH L. CARRIGG, Pennsylvania JOHN J. FLYNT, JR., Georgia

STEVEN B. DEROUNIAN, New York TORBERT H. MACDONALD, Massachusetts

2 DON HAYWORTH, Michigan

ELTON J. LAYTON, Clerk

ANDREW STEVENSON
KURT BORCHARDT

Professional Staff

SAM G. SPAL
MARTIN W. CUNNINGHAM

SUBCOMMITTEE ON TRANSPORTATION AND COMMUNICATIONS

OREN HARRIS, Arkansas Chairman JOHN BELL WILLIAMS, Mississippi CHARLES A. WOLVERTON, New Jersey PETER F. MACK, JR., Illinois

CARL HINSHAW, California 3 ISIDORE DOLLINGER, New York

JOSEPH P. O'HARA, Minnesota WALTER ROGERS, Texas

ROBERT HALE, Maine JOHN J. FLYNT, JR., Georgia

JAMES I. DOLLIVER, Iowa

1 Died October 12, 1956,
2 Died May 25, 1956.
* Died August 5, 1956.

FOREWORD

The Transportation Amendments Act of 1955, H. R. 6141 and H. R. 6142, originated as a result of recommendations presented for the consideration of President Eisenhower by the Presidential Advisory Committee on Transport Policy and Organization.

The President established the Advisory Committee on July 12, 1954, under the chairmanship of Hon. Sinclair Weeks, Secretary of Commerce, with Hon. Charles E. Wilson, Secretary of Defense, and Hon. Arthur S. Flemming, Director, Office of Defense Mobilization, as members. Hon. George M. Humphrey, Secretary of the Treasury, Hon. Arthur E. Summerfield, Postmaster General, Hon. Ezra T. Benson, Secretary of Agriculture, and Hon. Howland R. Hughes, Director, Bureau of the Budget, were designated as participants on an ad hoc basis.

The President directed the Advisory Committee to examine existing Federal transportation policies and programs for the purpose of determining their effect on the overall needs of the Nation. In his letter establishing the committee, he stated :

The vital interests of this Nation require that the transportation industry of the United States maintain itself at maximum effectiveness. The Government must provide effective leadership in assuring that its policies and programs affecting the various forms of transportation, whose services are so necessary to the public and to industry and which have such a vital bearing upon the national security, are best designed to aid them in performing fully the roles for which each is best suited.

The Advisory Committee, on September 2, 1954, announced the appointment of a working group of transportation experts from outside the Government to assist in its task. Members of the working group were:

Arthur W. Page, director, American Telephone & Telegraph Co., chairman.

Charles H. Beard, general traffic manager, Union Carbide & Carbon Corp., New York City.

Charles L. Bearing, senior staff member, Brookings Institution, Washington, D.C.

Fairman R. Dick, limited partner, Dick & Merle-Smith, New York City

George Roberts, partner, Winthrop, Stimson, Putman & Roberts, New York City.

Arthur C. Schier, vice president for traffic, General Foods Corp., White Plains, N. Y.

Ernest W. Williams professor, transportation, Columbia University, New York City. The Advisory Committee's report to the President, entitled "Revision of Federal Transportation Policy," was released at the White

House on April 18, 1955. It was unanimously approved by all regular and participating members of the Advisory Committee.

The report deals primarily with two major areas of Federal transportation regulatory policy which, it declares, are "urgently in need of revision if the transportation industry of the United States is to maintain itself at maximum effectiveness." The major objectives set out in the report are:

1. Increased reliance on competitive forces of transportation in ratemaking in order

(a) to have transportation enterprises function under a system of dynamic competition which will speed up technical innovation and foster the development of new rate and service concepts; and

(0) to enable each form of transport to reflect its abilities in the market by aggressive experimentation in rates and service in order to demonstrate

to the full its possibilities for service to the shipping and traveling public; 2. Maintenance of a modernized and financially strong system of common carrier transportations :

3. Eneouragement of increased efficiency and economy in the management of all transportation services in order to give the ultimate consumer the benefit of the lowest possible transportation costs; and

4. Development of an efficient transportation system for defense mobilization or war.

Legislation to implement the report's recommendations was drafted by the Department of Commerce and sent to the House of Representatives and the Senate on May 5, 1955. The Department's purpose in drafting the legislation was stated in its letter transmitting the legislation to be:

Our intention with respect to this draft of legislation is to provide a useful tool for the Congress in considering the recommendations of the Advisory Comwittee. The Committee believes this matter to be one of considerable public importance to which the Congress will wish to give the broadest consideration and that this legislation will serve as a helpful basis for the development of a sound national program with respect to these matters.

The drafted legislation was introduced in the House by request in identical bills H. R. 6141 and H. R, 6142, introduced by our late Chairman Priest and the ranking minority member, Mr. Wolverton. The companion bill in the Senate, also introduced by request, is S. 1920.

This committee's Subcommittee on Transportation and Commurications, of which I have been chairman, convened hearings on the Advisory Committee's report between sessions of the 84th Congress on September 19 through September 22, 1955. The legislation was not under consideration. The purpose of this hearing was to receive a full explanation of the report from the members of the Advisory Committee and a general discussion thereof by representatives of each of the major segments of the transportation industry so that the subcommittee might be in a better position to consider specific legislation during the 2d session of the 84th Congress. All three members of the Advisory Committee testified in support of the report's recommendations. Representatives of the motor carrier, railroad, water carrier, and freight forwarder industries presented testimony both in support and in opposition to the recommendations.

The Subcommittee on Transportation and Communications commenced detailed hearings on H. R. 6141 and H. R. 6142, together with

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