EXHIBIT 3

(To pt. VII, ch. 5)

(Extract from 1960 Report of the National Conference of State Transportation Specialists to the National Association of Railroad Utilities Commissioners "Enforcement")

The committee on enforcement, Chairman R. Garrett Phillips, Illinois, has been diligently pursuing a program calculated to promote uniform enforcement procedures with respect to unlawful operation by motor carriers which (a) have not secured appropriate authority from any regulatory body to perform a transportation service for compensation, (b) have not complied with the statutory requirements that for-hire carriers must file with the regulatory bodies evidence of security for the protection of the public, (c) have failed to meet minimum requirements with respect to safety of operation or equipment standards, (d) have been and are continuing to jeopardize the stability of carriers which have been and are now making diligent efforts to operate in a manner acceptable to the requirements of our regulatory bodies, and (e) are undermining the stability of commercial and business enterprises throughout the Nation, and thereby, the national economy through discriminatory practices in rate and service matters.

It is the considered conclusion of the committee that the desired progress can ultimately be accomplished through full cooperation between the State regulatory bodies. Such cooperation includes the willingness to exchange periodic reports of cases pending or terminated showing names of owners of vehicles performing unlawful transportation, drivers involved, commodities being transported, names and addresses of consignors and consignees, points between which such transportation was performed in each instance, and disposition of such cases by the courts.

Connotation of the term "cooperation" also implies a willingness on the part of the several State commissions to conduct investigations for one another to uncover evidence necessary to enable State courts to make determinations in cases involving alleged "buy and sell" operations, alleged farmer cooperatives, shipper associations, and vehicle leasing arrangements. Exhaustive examination of all areas of alleged bona fide private carriage is needed at the State level to halt the inroads being made upon the legal prerogatives of duly authorized public transportation systems.

During the week of June 6-12, 18 State commissions cooperated in an around-the-clock truck survey at points located on principal arterial highways. States participating were Alabama, Arkansas, Colorado, Florida, Idaho, Illinois, Indiana, Kentucky, Mississippi, Missouri, New Mexico, North Carolina, Oklahoma, Rhode Island, Tennessee, Washington, West Virginia, and Wisconsin. Results are shown in appendix B. (See annex to this exhibit, pp. 14, 15.)

Allowing for a minor percentage for human error there are discrepancies such as in the addition of total trucks checked entered in the last column to the right of the form. This duplication is evident where there are arrests and sometimes there are duplicate checks involving both certified and leased equipment. The columns headed "Co-ops" and "Arrests" should be correct.

The purpose of the survey was to obtain a nationwide sampling of the types of truck traffic, therefore the total number of arrests represents an ultraconservative figure where the actual percentage of unauthorized transportation is considerably higher. The investigations conducted during the week of June 6-12 were of necessity only cursory in nature. We know from previous experience that if those participating had had the time to make a thorough investigation through the cooperation of other States in which each questionable operation originated and terminated, the percentage of arrests for unauthorized operation would have been materially higher.

It is the further conclusion of the committee on enforcement that fully 50 percent of the column on appendix B marked "Private" (36 percent), and the column headed "Leased" (13 percent), are actually violators of the various State motor carrier laws through the loopholes of "buy and sell" and "fictitious leases, etc." This means that, conservatively speaking, 25 percent of the over-the-road transportation of commodities is for compensation and not in furtherance of any other commercial enterprise, and that a more uniform, cooperative enforcement program between the State commissions would channel back much of this traffic to the legitimate carriers.

Throughout this report we have referred to "unauthorized" transportation as distinguished from "illegal" transportation. It is possible for any authorized carrier to at times be illegal but the carrier which holds no authority from any regulatory body is illegal in all of its operation. We wish to reiterate that we have no fault to find with bona fide private carriage, nor with legitimate cooperative associations as defined in the Federal Agricultural Marketing Act, approved June 15, 1929, as amended (pp. 5, 6).