The association unanimously endorses this legislation and asks that the Committee on Interstate and Foreign Commerce report H. R. 3203 favorably, and exert its every effort to have it enacted into law during the first session of the 83d Congress.

The CHAIRMAN. Is Gordon Stedman present, representing the Growers and Shippers League of Florida?

Mr. STEDMAN. Yes, sir.

The CHAIRMAN. How long will your statement be?

Mr. STEDMAN. I think I can cut this down to 10 minutes.
The CHAIRMAN. Thank you.

STATEMENT OF GORDON STEDMAN, SECRETARY-MANAGER, GROWERS AND SHIPPERS LEAGUE OF FLORIDA, ORLANDO, FLA.

Mr. STEDMAN. Mr. Chairman, my name is Gordon Stedman, and I am secretary-manager of the Growers and Shippers League of Florida. My address is 45 West Central Avenue, Orlando, Fla.

I have a prepared statement, Mr. Chairman, and I will skip the first page and a half that identify the oranizations I represent, the Florida Citrus Commission, the Florida Citrus Mutual, and the Florida Growers Association.

The CHAIRMAN. I want you to know, Mr. Stedman, that you will be privileged to put your entire statement in the record, and that applies to Mr. Sutherland himself. Your entire statement will be put in the record. It applies also to any other witness who appears and for the sake of conserving time merely mentions the highlights of his statement. In each case his statement will be inserted in the record in full. You may proceed.

Mr. STEDMAN. I appear as the witness for the Growers and Shippers League of Florida, and the same organizations I speak here for now, in MC-43, which was referred to by Mr. Mathews. I will start on page 2 as to why we favor the legislation before this committee.

Invoking the rules prescribed by the Interstate Commerce Commission will seriously restrict the use of motor-truck transportation of fresh citrus fruits and vegetables from Florida. The rules will result in an economic waste of transportation. The rules will result in bringing about higher transportation costs.

Certificated or permitted carriers cannot perform the flexible service required and do not have the proper equipment. Railoads do not have enough equipment should they be required to transport the entire production of citrus fruits and vegetables produced in the State of Florida.

Motor truck transportation is vitally needed by producers of agricultural commodities and particularly those producing fresh fruits and vegetables.

Speaking of the fresh fruit and vegetable industry, as a whole, it has long since progressed beyond the so-called peddler stage and has become more and more a stabilized business procedure and a scientific operation, not only from the standpoint of production, but in the distribution and merchandising of these highly perishable commodities. Ways and means of increasing production and to secure better quality fruit and vegetables has been subject of scientific research for years, but it has only been in fairly recent years that this same stress

has been placed on improving distribution and merchandising of these commodities, in order that the housewife can place them on her table as nearly fresh and crisp as when they were harvested.

and

The fresh fruit and vegetable industry, as well as the United States Department of Agriculture, is spending millions of dollars yearly in progressing this program of better distribution and merchandising. Transportation plans a mighty important part in this program, this industry has and is spending a great deal of time and money in developing better transportation facilities by cooperative effort with the railroads, motor truck owners and operators, truck and trailer manufacturers' associations, and the United States Department of Agriculture.

We contend that the producer and shipper is entitled to have available to transport his commodities to market all forms or modes of transportation-rail, boat, and trucks-so that he may have a choice of service from which to select that which will best serve his needs, and will be the most efficient and economical transportation in the interest of the consuming public.

The Florida citrus and vegetable industry has been and is expanding year after year. In the 1935-36 season the Florida production of all citrus fruit in terms of 1% bushel boxes was 29,462,052 boxes and for the current season 1952-53, as estimated by the United States Department of Agriculture as of April 10, 1953, the production of all citrus fruits will be 111,500,000 boxes, and within 5 to 7 years will in all probability reach a total production of 150 million boxes.

There have been statements made that truck movement of fresh fruits and vegetables is a postwar development. We submit, however, that while the movement by truck has increased materially since World War II, truck movement of perishables from Florida antedates the Motor Carrier Act passed by Congress in 1935.

It is the opinion of the members of our organization that the quality of truck service now rendered to this industry is far superior to that which was offered back in the early and middle thirties. At that time truckers to a great extent purchased from the grower and shipper and operated as itinerant merchants, peddling to the retailer and wholesaler at any destination he chose to serve.

This type of operator is very much in the minority at the present, and generally speaking the truck operators are rendering a transportation service only. Years ago very few truck operators were properly insured, but in more recent years and under the automobile financial responsibility law of Florida today all motor vehicles operated on the highways of Florida are covered by public liability insurance, and we are advised by the Florida Truck Brokers Association that in addition to liability insurance fully 90 percent of the truckers carry insurance to protect the owners of the commodities.

The importance of truck transportation to the Florida citrus and vegetable producer is clearly indicated as to citrus, table 1, and vegetables, tables 2, which tables show the shipments of fresh citrus fruit and fresh vegetables by rail, boat, and truck for the seasons 1930-31 through 1951-52, and to April 4, 1953, for the 1952-53 season. Table 3 shows the interstate truck distribution of Florida citrus fruit for the 1951-52 season in terms of carlot shipments on the basis of 500 134 bushel boxes per carlot. During the 1951-52 season trucks

transported fresh citrus fruit to 45 States, the District of Columbia, and Canada, as shown on table 3, and to 241 cities within those States. These shipments are reported in terms of 500 box carlot equivalents for that is the average rail carload of fresh citrus fruit and so that the figures may be comparable the 500 carlot equivalent is used in comparing the truck shipments, but the figures do not represent truckloads. The normal truckload of fresh citrus fruit is 325 13% bushel boxes and converting the above figures, using this truckload of 325 boxes, 58,734 truckloads of fresh citrus fruit were shipped to the States and cities referred to in table 3. The information in tables 2 and 3 is furnished to indicate the great importance to Florida and the consumers of Florida products of motortruck transportation not only to the fresh citrus producer but also to the producer of fresh vegetables, and fruits other than citrus.

I have in this statement tables 1, 2, and 3 that follow, and I would like to call your attention to the fourth column which shows the truck movement. Column 2 is the rail movement. That shows very clearly the motortruck shipments from Florida, and the importance to the industry. I am personally acquainted with many truck operators down in Florida where they maintain their residence, and I am astounded to hear statements made at this hearing that these so-called itinerant operators are only receiving 15 to 20 cents an hour. I know them personally and I know they are receiving-I do not know what their take-home pay is, but a very good living.

Just out of curiosity after the representative of Adley Express testified, we checked the Commission record, and if I remember his testimony properly, he indicated that the itinerant merchant was driving the certificated carrier to the wall. Here is what the Commission records show: That the Adley Express did a $5 million gross business in 1951, and their operating ratio was 88.76 percent. In other words, almost a 20-percent earning.

In 1952, which is just last year, they had an operating ratio of 85.05 percent. I do not think that the itinerant merchant is driving certificated carriers to the wall.

I would like to refer now to page 9.

The tremendous volume of perishable tonnage now moving from Florida by motortruck cannot move by rail and much of it would have to rot on the trees or in the ground or planting would have to be drastically reduced, which certainly would not be in the public interest, if even a very small percentage of the trucks transporting these commodities were forced to abandon operations.

I am sure it is well known to this committee that the railroads do not have the equipment to move all of the traffic and there is no movement, of any known material extent, in common or contract motortrucks, certificated by the Interstate Commerce Commission. Neither the certificated motor common carrier nor the permitted contract carrier have shown any sustained interest in hauling fresh citrus fruits and vegetables from Florida.

The view is universally held by the Florida citrus and vegetable industries, and by motor common and contract carrier interests as well, that it is neither feasible nor practicable for the regulated motor common and contract carriers to attempt to handle this traffic-the commodity is perishable, great flexibility of movement is required, it

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is a seasonal movement, the common carrier is restricted to specified routes and schedules, and there is no general interchange of equipment between carriers so as to permit through movement in the same vehicle without unloading and reloading of the lading en route.

By the very nature of the general practice in the fresh citrus and vegetable industries, the final destination of many shipments is not known at the time the shipment leaves Florida. When moving, either by rail or by exempt motor vehicle, the shipper may and frequently does divert the shipment to a new destination not known at the time the rail car or motortruck departs from Florida origin. Such diversion instructions could not be given to motor common and contract carriers under regulation by Interstate Commerce Commission where routes, schedules, or destinations are restricted in the operating authority issued by the Commission under the terms of the Motor Carrier Act, if the new destination be off the route of the regulated motor carrier or outside the territory or area it is authorized to serve.

Some 15 to 20 years ago the railroads owned or contolled appoximately 137,000 refrigerator cars, and about 130,000 were assigned or were suitable for fresh fruit and vegetable loading. According to the testimony and statistical information submitted to the Senate Subcommittee on Domestic Land and Water Transportation of the Committee on Interstate and Foreign Commerce, 81st Congress, pursuant to Senate Resolution 50 by ICC Commissioner J. M. Johnson, the railroad refrigerator-car fleet was depleted by 12,629 cars from the years 1940 to 1949. The following is taken from table 7 submitted by Commissioner J. M. Johnson and appears on page 528 of the hearings.

Statement showing number of refrigerator cars in United States (taken from table VII, J. M. Johnson testimony, S. Res. 50, p. 528)

According to the car service division of the Association of American Railroads, the situation relative to new installed, retired, new on order, ownership, awaiting repairs, and serviceable owned refrigerators March 1, 1953, and March 1, 1952, is as follows:

Refrigerator cars installed, retired, on order and awaiting repairs Mar. 1, 1953, compared to Mar. 1, 1952

During the years 1935 to 1940 the railroad fleet of refrigerator cars was reduced by approximately 7,000 and from 1940 to 1949, as testified to by Commissioner J. M. Johnson, was further depleted by 12,629 cars, and during the period from 1949 to March 1, 1953, the railroad ownership of refrigerator cars dropped from 111,179 to 100,661, or a further depletion of 10,518 cars. During the period 1953 to March 1, 1953, the railroads have reduced their fleet of refrigerator cars by 30,000, and it is to be further noted in the mentioned data that as of March 1, 1953, there were in service only 94,308 refrigerator cars in the entire Nation to serve not only Florida, but also all other areas in the United States requiring railroad refrigerator cars for transportation.

Included in the above total number of refrigerator cars are the cars provided by the car lines serving the Florida citrus and vegetable industry and one paramount reason for the tremendous growth of motortruck transportation has been because of the inadequate refrigerator-car supply.

Members of the Interstate Commerce Commission and the Administrator of Defense Transport Administration have made repeated statements relative to the serious shortage of all railroad rolling stock, including refrigerator cars, in an effort to secure adequate supplies of materials and steel, but to date the refrigerator-car building program is just barely to the break-even point. In other words, the known present building program will produce new cars only to offset retirements, and when all the refrigerator cars now planned are built, there will be no greater number in service than at the present time.

All during the war years and since then we have experienced periods of refrigerator-car shortages in Florida. It was quite serious during the early months of 1951, so much so that by voluntary action and agreement between shippers, the railroads, and Interstate Commerce Commission officials, and without any ICC service orders being issued for a total period of 11 days, no refrigerator cars were placed for fresh oranges and grapefruit loading so that available cars could all be used for the more perishable vegetables.

We are also concerned with the lack of sufficient funds being allocated to the Interstate Commerce Commission for carrying on its statutory duties and shudder to think what these duties would pyramid to should the Interstate Commerce Commission attempt to invoke the rules they have prescribed referred to herein.

Considering the expanding citrus and vegetable industry in Florida; the very apparent inadequate supply of railroad refrigertor cars; the lack of interest and inability of certificated motor carriers to properly provide service; the economic waste of transportation and higher transportation costs, if trip leasing be abolished; and the imperative necessity for adequate motortruck transportation at the lowest cost consistent with the furnishing of such service for hauling a substantial portion of Florida fresh citrus fruits and fresh vegetables to the consuming markets of the Nation, we respectfully request this committee to approve H. R. 3203.

The CHAIRMAN. Are there any questions, gentlemen?

Mr. STEDMAN. Mr. Chairman, I might say that I have attempted to present the factual position of Florida as to the need for motortrucks and our transportation situation, and Mr. M. W. Wells, who