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CARD DIVISION

4.. Crimli.Sunik; ?

HEARINGS

BEFORE THE

COMMITTEE ON
INTERSTATE AND FOREIGN COMMERCE

UNITED STATES SENATE

EIGHTY-FIFTH CONGRESS

SECOND SESSION

ON

S. 3778

TO AMEND THE INTERSTATE COMMERCE ACT, AS AMENDED,
SO AS TO STRENGTHEN AND IMPROVE THE NATIONAL
TRANSPORTATION SYSTEM, AND FOR OTHER

PURPOSES

MAY 20 AND 21, 1958

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

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COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

WARREN G. MAGNUSON, Washington, Chairman JOHN O. PASTORE, Rhode Island

JOHN W. BRICKER, Ohio A. S. MIKE MONRONEY, Oklahoma

ANDREW F. SCHOEPPEL, Kansas GEORGE A. SMATHERS, Florida

JOHN MARSHALL BUTLER, Maryland ALAN BIBLE, Nevada

CHARLES E. POTTER, Michigan STROM THURMOND, South Carolina

WILLIAM A. PURTELL, Connecticut FRANK J. LAUSCHE, Ohio

FREDERICK G. PAYNE, Maine
RALPH YARBOROUGH, Texas

NORRIS COTTON, New Hampshire
EDWARD JARRETT, Chief Clerk
BERTRAM O. WISSMAN, Assistant Chief Clerk

HAROLD I. BAYNTON, Chief Counsel
JAMES E. BAILEY, Assistant Chief Counsel
FRANK L. BARTON, Transportation Counsel
WILLIAM L. KOHLER. Assistant Counsel

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Statement of

Arnold, Grant, general traffic manager, E. J. Lavino & Co., Phila-

delphia, Pa., and president, National Industrial Traffic League, Page

711 14th Street NW., Washington, D. C., May 21, 1958.--------- 123

Arpaia, Hon. Anthony, Commissioner, Interstate Commerce Com-

mission, Washington, D. C., May 20, 1958.----------------- 17, 50, 165

Dewey, Ralph B., president, Pacific American Steamship Association,

16 California Street, San Francisco, Calif., May 20, 1958.---

34

Freas, Hon. Howard G., Chairman, Interstate Commerce Commis-

sion, Washington, D. C., accompanied by Commissioners Anthony

F. Arpaia and Robert W. Minor, May 21, 1958.--.

165

Haddock, Hoyt S., executive secretary, AFL-CIO Maritime Com-

mittee, 132 Third Street SE., Washington, D. C. May 21, 1958.--- 162

Ingersoll, A. C., Jr., chairman of the board, the American Waterways

Operators, Inc., 1625 Conn. Avenue NW., Washington, May 21,

1958.-----

Langdon, Jervis, Jr., general counsel, Baltimore & Ohio Railroad Co.,

Baltimore, Md., May 21, 1958-----

Leighton, Léon, vice president, New York, Susquehanna & Western

Railroad Co., Paterson, N. J., and president of the Brotherhood of

Railroad Telegraphers, May 21, 1958

-------- 30, 125

Leighty, G. E., Chairman, Railway Labor Executives Association,

Washington, D. C.----

Pinkney, James E., general counsel, American Trucking Associations,

1424 16th Street NW., Washington, D. C., May 21, 1958.----

Taylor, G. C., president, Mississippi Valley Barge Line Co., St. Louis,

Mo., accompanied by Harry C. Ames, attorney, May 21, 1958.---

Weiss, Abraham, economist, International Brotherhood of Teamsters,

25 Louisiana Avenue NW., Washington, D. C., May 20, 1958-----

Weller, John L., president, Seatrain Lines, Inc., 711 Third Avenue,

New York, N. Y., and representing Pan Atlantic Steamship Corp.,

May 20, 1958.---
Wheeler, Hon. Burton K., Southern Building, Washington, D. C., May

20, 1958.-

Statement submitted by-

Hansen, H. Robert, Jr., president, Hansen Pacific Corp., Fortuna,

Calif-----------------

--------------------------
Mack, Harry M., president, Ohio Valley Improvement Association,

Inc., Cincinnati, Ohio ----

McDonald, Angus, coordinator, division of legislative services, Na-

tional Farmers Union, 1404 New York Avenue NW., Washington,

D. C.-------

O'Reilly, Harry E., executive secretary-treasurer, maritime trades

department, AFL-CIO, 815 16th Street NW., Washington, D. C..
Letters and telegrams from-

Ames, Harry C., Ames, Hill & Ames, Washington, D. C., dated March

Ash, E. C., traffic manager, Mobile Port Traffic Bureau, Inc., Mobile,

Ala., dated May 13, 1958.--

Chandler, Ralph, vice president, Matson Navigation Co., Los Angeles,

Calif., dated May 15, 1958.-

Clark, Hon. Joseph S., United States Senate, Washington, D. C.,

dated May 19, 1958.------

Coleman, c. w., secretary, Louisiana Public Service Commission,

Baton Rouge, La., dated May 22, 1958...

Ellender, Hon. Allen J., United States Senate, Washington, D. C.,

dated 'May 15, 1958.---

IT

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Letters and telegrams from-Continued

Ellender, Hon. Allen J., United States Senate, Washington, D. C.,

dated May 28, 1958.----

Fitch, William K., president, Dravo Corp., Pittsburgh, Pa., dated

May 16, 1958----

Freas, Hon. Howard, Chairman, Interstate Commerce Commission,

Washington, D. C., dated March 27, 1958.-----

Henderson, J. D., national managing director, American Association

of Small Business, New Orleans, La., dated May 23, 1958.---

Ingersoll, A. C., Jr., chairman of the board, the American Waterways

Operators, Inc., Washington, D. C., dated May 23, 1958.--

Kuchel, Hon. Thomas H., United States Senate, Washington, D. C.,

dated May 26, 1958-----

---

Loomis, Daniel P., Association of American Railroads, Transportation

Building, Washington, D. C., dated May 23, 1958.

Magnuson, Hon. Warren G., chairman, Senate Committee on Inter-

state and Foreign Commerce, Capitol Building, Washington, D. C.,

dated May 20, 1958.----

Magnuson, Hon. Warren G., chairman, Senate Committee on Inter-

state and Foreign Commerce, dated May 28, 1958...

Olson, E. Whitney, president, Oliver J. Olson & Co., 121 North San

Mateo Drive, San Mateo, Calif., dated May 15, 1958.--.

O'Reilly, Harry E., executive secretary-treasurer, maritime trades de-

partment, AFL-CIO, Washington, D. C., dated May 13, 1958.---

Pinkney, James F., general counsel, American Trucking Association,

Inc., 1424 16th Street NW., Washington, D. C., dated May 23,

1958.--

Sinclair, J., president and general manager, Luckenbach Steamship

Co., Inc., 120 Wall Street, New York, N. Y., dated May 14, 1958-
Smith, Donald W., vice president and secretary, Seatrain Lines, Inc.,

711 Third Avenue, New York, N. Y., dated May 22, 1958--------
Stoddard, A. P., president, Central Labor Council of New Orleans,

AFL-CIO, 4818 Deanne Street, New Orleans, La----
Thompson, A. M., president, Inland Waterways Common Carriers

Association, Chicago, Ill., dated May 23, 1958.---

Weeks, Hon. Sinclair, Secretary of Commerce, Washington, D. C.,

dated April 22, 1958...

Wellen, John L., Seatrain Lines, Inc., New York, N. Y., dated May 22,

1958
Williams, Lindsey J., port agent, International Union AFL-CIO, 523

Bienville Street, New Orleans, La., dated May 13, 1958.

Reports from-

Civil Aeronautics Board, dated May 19, 1958.-----

Department of Agriculture, dated May 22, 1958.-

Department of Commerce, dated June 4, 1958.-

Department of State, dated June 3, 1958-----

General Accounting Office, dated May 29, 1958.-

----------------

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RATEMAKING RULE-ICC ACT

TUESDAY, MAY 20, 1958

UNITED STATES SENATE,
COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D.C. The committee met, pursuant to notice, at 2:30 p. m., in room G-16, United States Capitol, Senator George A. Smathers presiding:

Senator SMATHERS. Gentlemen, if the meeting will come to order, it is 2:30, and the meeting was announced for 2:30. There will be undoubtedly some other Senators who will show up. This afternoon's hearings are scheduled before the full Interstate and Foreign Commerce Commission on section 5, the so-called ratemaking section of Senate bill 3778, which bill has been termed the Transportation Act of 1958.

(The bill referred to is as follows:)

[S. 3778, 85th Cong., 2d sess.] A BILL To amend the Interstate Commerce Act, as amended, so as to strengthen and

improve the national transportation system, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Transportation Act of 1958."

SEC. 2. Section 1 of the Interstate Commerce Act, as amended, is amended (1) by inserting in subparagraph (a) of paragraph (2) thereof, after the word “aforesaid” and before the semicolon following that word, the words "except as otherwise provided in this part" and (2) by striking out the period at the end of the proviso in subparagraph (a) of paragraph (17) thereof and inserting in lieu thereof the following "and except as otherwise provided in this part."

SEC. 3. (a) The first sentence of paragraph (4) of section 13 of the Interstate Commerce Act, as amended, is amended to read as follows:

"(4) Whenever in any such investigation the Commission, after full hearing, finds that any such rate, fare, charge, classification, regulation, or practice causes any undue or unreasonable advantage, preference, or prejudice as between persons or localities in intrastate commerce on the one hand and interstate or foreign commerce on the other hand, or any undue, unreasonable, or unjust discrimination against, or undue burden on, interstate or foreign commerce (which the Commission may find without considering in totality the operations or results thereof of any carrier, or group or groups of carriers wholly within any State), which is hereby forbidden and declared to be unlawful, it shall prescribe the rate, fare, or charge, or the maximum or minimum, or maximum and minimum, thereafter to be charged, and the classification, regulation, or practice thereafter to be observed, in such manner as, in its judgment, will remove such advantage, preference, prejudice, discrimination, or burden: Provided, That upon the filing of any petition authorized by the provisions of paragraph (3) hereof to be filed by the carrier concerned, the Commission shall forthwith institute an investigation as aforesaid into the lawfulness of such rate, fare, charge, classification, regulation, or practice (whether or not theretofore considered by any State agency or authority and without

NOTE.-Staff members assigned to the hearings : Frank L. Barton and William L. Kohler.

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