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, (AND RELATED BILLS) Printed for the use of the Committee on Interstate and Foreign Commerce 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. Dearing, 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 (b) 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. Encouragement 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 Committee. The Committee believes this matter to be one of considerable publie 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 recom. mendations. 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 related legislation, on April 24, 1956, with the hearings continuing through June 20, 1956. During these hearings testimony was received from numerous witnesses representing Government agencies, the various transport segments affected, as railroads, motor carriers, water carriers, and freight forwarders, labor shippers and shipping groups, and the general public. Such testimony exceeded 1,850 printed pages. The Subcommittee on Transportation and Communications recommended to the full committee that, owing to the voluminous and comprehensive record developed, further study be made to sharpen the issues involved in the Advisory Committee report and the proposed legislation. As a result of the subcommittee recommendation, the committee on July 3 directed its staff, following the adjournment of the session to prepare a digest of the testimony, analysis of the differing positions on major proposals, and amendments offered, so that the consideration of these important proposals affecting transportation policy may be assisted upon the return of the committee at the beginning of the next Congress. The digest, analysis, and index submitted herewith have been prepared to meet this directive. METHOD OF PRESENTATION Section I is a reprint, for reference purposes, of H. R. 6141 introduced by Chairman Priest (H. R. 6142 introduced by Mr. Wolverton being identical). Sections II through XIV consist of a digest and analysis of the testimony presenting a résumé of the differing positions of the witnesses on 13 major proposals, and section XV presents the same on a series of miscellaneous items, embodied in the proposed legislation. Under each topic is presented: (a) Summary of present provisions of the Interstate Commerce Act; (b) Amendments proposed by H. R. 6141, H. R. 6142, and related bills; (c) Purpose of the amendments proposed; (d) Digest of testimony of Department of Commerce sponsoring the amendments; (e) Digest of testimony of other proponents of the amendments; (f) Digest of testimony of opponents of the amendments. Owing to the desire to keep the digest within reasonable and useful space limitations, the testimony of the major spokesmen on each position has been utilized at length, with an indication given of the position taken by additional proponents or opponents of each proposal. The arrangement for presenting the digest of testimony by other proponents and by opponents under (e) and (f) above is alphabetical by organization-the first named where more than one is represented by the witness. At the end of each of these sections, there is an alphabetical listing of organizations with witnesses whose testimony has not been summarized. 1H. R. 525, relating to sec. 22, Government rates; H. R. 6208, relating to the fourth section; H. R. 9177, H. R. 9548, H. R. 9771, and H. R. 9772, relating to freight forwarders; and H. R. 6111 and S. 1777, relating to the transportation of certain disabled persons. |