ICC ADMINISTRATION OF THE
MOTOR CARRIER ACT

HEARINGS

BEFORE THE

SELECT COMMITTEE ON SMALL BUSINESS
UNITED STATES SENATE

EIGHTY-FOURTH CONGRESS

FIRST SESSION

ON

THE ADMINISTRATION OF THE MOTOR CARRIER ACT BY
THE INTERSTATE COMMERCE COMMISSION, AS IT
AFFECTS SMALL TRUCKERS AND SHIPPERS

70383

NOVEMBER 30, DECEMBER 1 AND 2, 1955

Printed for the use of the Select Committee on Small Business

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON: 1956

#5623 44

1956

SELECT COMMITTEE ON SMALL BUSINESS
[Created pursuant to S. Res. 58, 81st Cong.]

JOHN SPARKMAN, Alabama, Chairman

RUSSELL B. LONG, Louisiana

HUBERT H. HUMPHREY, Minnesota
GEORGE A. SMATHERS, Florida
JOHN F. KENNEDY, Massachusetts
JAMES O. EASTLAND, Mississippi
WAYNE MORSE, Oregon

EDWARD J. THYE, Minnesota

LEVERETT SALTONSTALL, Massachusetts
ANDREW F. SCHOEPPEL, Kansas
JAMES H. DUFF, Pennsylvania
BARRY GOLDWATER, Arizona
THOMAS H. KUCHEL, California

WALTER B. STULTS, Staff Director
LEWIS G. ODOM, Jr., Chief Counsel
WALTER ADAMS, Economic Counsel
MINNA L. RUPPERT, Chief Clerk

Statement of-

Arpaia, Anthony F., chairman, Division 3, Interstate Commerce

Commission_.

Page

163, 177

Barnes, Stanley N., Assistant Attorney General in charge of Antitrust
Division, Department of Justice, accompanied by his legal assistant,
Robert A. Bicks.

127, 149

Bernstein, Marver H., associate professor of politics, Princeton
University, Princeton, N. J..

Blanning, W. Y., director, Bureau of Motor Carriers, ICC
Brinkley, Homer L., executive vice president, National Council of
Farmer Cooperatives, Washington, D. C..........

Butz, Earl L., Assistant Secretary of Agriculture, accompanied by

George A. Dice, Director, Special Services Division, Agricultural

Marketing Service, and J. L. Pease, Assistant Chief, Freight Rate

Service Branch, Special Services Division, Agricultural Marketing

Service___

Coyle, Paul, chief, Section of Complaints, Bureau of Motor Carriers,

ICC..

177

Freeman, Donald E., secretary, Shipley Transfer, Inc., Baltimore,

Md...

58

Gould, Dexter, general manager and stockholder, Millis Transporta-

tion Co., Millis, Mass.

94

Halvorson, Dr. Lloyd C., economist, National Grange, Washington,

D. C...

121

Hawkins, A. W., Jr., A. W. Hawkins Co., Culpeper, Va

5

Jelsma, E. R., director, Bureau of Transport Economics and Statistics,

Interstate Commerce Commission

177

Knudson, James K., attorney, Washington, D. C.

12

Levitus, James, secretary-treasurer, Nationwide Carriers, Inc., St.

Paul, Minn., accompanied by Don Tucker, assistant traffic manager,

Land O'Lakes Creamery, Minneapolis, Minn.

McDonald, Angus, assistant legislative secretary, National Farmers

Union, Washington, D. C...

251

Margolin, Ed, Office of the Under Secretary for Transportation,

Department of Commerce-

285

Mitchell, Richard F., chairman, Division 1, Interstate Commerce

Commission...

156, 177

Nelson, James C., professor of economics and transportation, State
of Washington College, Pullman, Wash.

230, 242

Oren, Earl, president and general manager, Dart Transit Co., St. Paul,

Minn

39

Ray, Philip A., General Counsel, Department of Commerce_

Rothschild, Louis S., Under Secretary of Transportation, Department

285

of Commerce_

285

Stevens, John Paul, attorney, Chicago, Ill

213

Thye, Edward J., United States Senator from Minnesota

4

Triggs, Matthew, assistant legislative director, American Farm

Bureau Federation, Washington, D. C.--.

112

Tucker, Don, assistant traffic manager, Land O'Lakes Creamery,

Minneapolis, Minn.

30

92

Upton, Ernest, Bee Line Express Co., Birmingham, Ala
Weeks, Sinclair, Secretary of Commerce, accompanied by Louis S.
Rothschild, Under Secretary of Transportation; Philip A. Ray,
general counsel; Ed Margolin, Division of Transportation; and
Al Krebs, General Counsel's Office..

Yeary, Edwin N., president, Yeary Transfer Co., Inc., Lexington Ky.

285

97

EXHIBITS

Page

1. Opinion and dissent, McLean Trucking Co. v. United States.

24

2. Permit issued by Interstate Commerce Commission to Dart Transit Co.,

St. Paul, Minn. (No. MC-77055).

49

3. Exhibits submitted by James Lee Conner, Akron, Ohio:

(a) Motor Freight Transport agreement by and between A. C. E.

Transportation Co., Inc., Akron, Ohio...

(b) Central States area over-the-road motor freight agreement with

Ohio rider, February 1, 1955, to January 31, 1961.

(c) Letter dated October 20, 1955, from All States Freight, Inc.,

to Casmir Zukowsky, Akron, Ohio, canceling lease...

(d) Letter dated January 18, 1954, from Dixie Ohio Express Co.,

Akron, Ohio, to Robert Stafford, Akron, Ohio, announcing

discontinuation of present method of operation...

(e) Exceptions filed by International Brotherhood of Teamsters

with Interstate Commerce Commission, November 1, 1949,

in Ex parte No. MC-43, Lease and interchange of vehicles by

motor carriers..

(f) Reprint of article in October 1948 issue of Teamster, entitled

"ICC Rules Problems Discussed".

84

(g) Reprint of Reader's Digest article, November 1955, entitled

"Racket in the Jukebox".

86

(h) Letter dated December 13, 1955, from Stanley Denlinger, Akron,

Ohio, attaching proposed bill to amend Motor Carrier Act,

together with remarks re proposed amendments---

4. Information submitted by Homer L. Brinkley, vice president, National

Council of Farmer Cooperatives, Washington, D. C.:

(a) Table 1-Gross farm income realized from selected commodi-

ties: Amount, by type of commodity, and relationship to

gross farm income realized from all commodities, calendar

years 1953-54..

90

111

(b) Table 2-Receipts of live poultry at 12 major markets, by mode

of transportation, in calendar years 1952-53--

(c) Table 3-Receipts of dressed poultry at 13 major markets, by

mode of transportation, in calendar years 1952-54.

(d) Table 4-Unloads of peanuts at New York City, by mode of

transportation, in calendar years 1952-54...

111

112

112

129

5. Analysis of three-judge court cases, January 1, 1952, to October 31, 1955,

submitted by Assistant Attorney General Stanley N. Barnes.

6. Comments by Secretary of Commerce Sinclair Weeks on testimony of

Angus McDonald, assistant legislative secretary, National Farmers

Union, before the Senate Small Business Committee, December 2,

1955, in which he criticized the report of the Presidential Advisory

Committee on Transport Policy and Organization_-_-

6 (a). Supplemental testimony of Secretary of Commerce Weeks on the

Advisory Committee Report on Transport Policy, before the sub-

committee of the House Interstate and Foreign Commerce, Sep-

tember 19, 1955:

1. Memorandum on changes in minimum-maximum rate con-

trols proposed by the Presidential Advisory Committee on

Transport Policy and Organization.

291

295

2. A brief history of the ICC's ratemaking power (appendix

A).

299

300

Facing 300

3. Chart: Normal ratemaking procedure (appendix B).

4. Chart: Ratemaking procedure when proposed rate is pro-

tested (appendix C)....

Facing 300

5. Chart: Ratemaking procedure when complaint is filed against

existing rate (appendix D).-

7. Reprint of article by Samuel P. Huntington, from Yale Law Review,
April 1952, entitled "The Marasmus of the ICC: The Commission, the
Railroads, and the Public Interest'

8. Statement of Angus McDonald, National Farmers Union, before the
Senate Committee on Interstate and Foreign Commerce, in regard
to the freight-car shortage, July 28, 1955---

APPENDIXES

1. Questionnaire: Interstate Commerce Commission's answers to ques-

tionnaire submitted by Senate Small Business Committee, con-

cerning administration of Motor Carrier Act____

255

281

311