ROGER G. KIMBER New York, N.Y., June 20, 1963. Re S. 1061. Senator WARREN G. MAGNUSON, Washington, D.C. DEAR SIR: As chairman of the Senate Commerce Committee, you are vitally interested and play an important role in helping reestablish the healthy national transportation system. We are sure you will agree that the railroad industry by far most urgently needs your legislative support. Your vote in favor of the above bill will do much to assist the railroad industry in regaining its economical health. You, of course, realize that the railroad industry vitally affects the economic health of many railroad supply companies such as ourselves. Your vote in favor of the above bill will once again return some resemblance of fair competition for the railroads in setting rates on agricultural products and bulk commodities to meet the lower rates which the truck and barge lines are permitted to make Your favorable vote will do much to begin the modernization of obsolete legisla tion and regulation which has been dogging the railroad industry for years. We will be watching your vote with more than casual interest. We urge you to support this bill. Also, we would appreciate your making this letter part of the official record of the hearings on this bill. Sincerely, ROGER G. KIMBER LOUISVILLE, KY., May 14, 1963. Subject: Statement of W. A. Knight in support of Senate bills S. 1061 an S. 1062. Hon. WARREN G. MAGNUSON, DEAR SENATOR MAGNUSON: My name is W. A. Knight. I am a traffic mana and transportation consultant with my office at 1228 Highland Avenue, Louisvi Ky. For the past 35 years I have been engaged in handling and supervising t fic and transportation matters of all kinds. My employment has been with ra roads and industrial concerns. For the past 25 years I have been employed industrial concerns that ship via rail, water, and highway, and at the pres time my clients ship more than 30 million carloads annually. A large part of th volume consists of bulk commodities such as grain, coal tar, oils, and petrol Some of my clients are the Owensboro Grain Co., Owensboro, Ky., Kentucky Fe & Grain Association, Lexington, Ky., Harlan County Coal Association, Hars Ky., Western Tar Products Corp., Jeffersonville, Ind., and Memphis, Tenn This prepared statement is in support of S. 1061 and S. 1062. The passage of S. 1061 is very desirable, for that action would enable the st pers of bulk commodities, many of whom I number among my clients, to tr port their commodities at less cost to them, with consequent benefits to consuming public. My clients will be able to choose transportation on an economic basis, that according to the low cost, which involves considerations of service factors as * as rate factors. Under the present regulations whereby railroad rates often been held up to protect traffic carried by other modes of transportat rather than being allowed to operate according to the abilities of the conte ing carriers, my clients are unable to rely upon the economic factors and found themselves the victims of such artificial factors as an administrative location of traffic. Jurisdiction in the Interstate Commerce Commission over the setting reduced rates enables a carrier enjoying a particular traffic movement to fere with the orderly installation of the reduced rate by petitioning the In state Commerce Commission for suspension of the proposed rate pending a investigation. In such an instance, the law is being used as a weapon ly objecting carrier to the detriment of the shipper of freight. The shipper is! vented from gaining the advantage of a reduced cost to him even though later-too often, later by many months-develop that the proposed rate wa pletely justified. Some persons, in discussing this regulation, have feared that it removes too much control from railroad rates. Without more than a brief bow to the fact that such statements are generally heard only from motor carriers and water carriers and the fact that only about one-third of motor carrier traffic is regulated today and only about one-tenth of water carrier traffic is regulated today, I would point out to you that so long as there is available to shippers the possibility of private carriage, there exists a very effective control over the rates of any common carrier. Much has been made by the opponents of this legislation of the assertion that railroads habitually make low rates with respect to river ports and high rates with respect to inland cities. The waterways are free at the expense of all taxpayers. If the bargelines were required to pay a charge for using the waterways their rates would of necessity be higher and consequently the rail rates would not have to be so low. Barge competitive traffic would then bear a more equitable share of the transportation burden and inland rates could be reduced. As long as the waterways are free and bulk commodities are transported partly at the expense of all taxpayers, there is no reason why the railroads should not be permitted to meet this competition. In reality the transportation burden on inland rail traffic is greater as long as the immense volume of bulk traffic is reserved by legislature for the bargelines. Free waterways and minimum rate restrictions via landlocked transportation have caused a concentration of industry along the waterways to the detriment of the interior points. We discovered this in making an industrial survey in 1961 along the Delta region in the State of Mississippi. To illustrate, a grain elevator was built on the Mississippi River at Helena, Ark., and began to attract all the soybeans in the adjoining counties in Arkansas and Mississippi for shipment by barge to New Orleans for export. Upon insistence of the interior elevators at such points as Clarksdale, Jonestown, and Marks, Miss., the railroads published reduced rates to meet the barge competition. The bargelines succeeded in having the rates suspended, and after lengthy litigation the Interstate Commerce Commission approved the rates. However, by this time irreparable harm had been done to the interior elevators; they lost business during the suspension period which they have never been able to recover. To further emphasize the difficulties and delays the rail carriers encounter when they try to publish reasonable rates on bulk commodities, your attention is directed to the following cases before the Commission: I. & S. Docket No. 7656 Grain in Multiple-Car Shipments-River Crossing to the South (1963), Stone in Train Loads from Prarie Du Rocher to Baton Rouge, La. 313, I.C.C. 71 (1960), Coal-Southern Mines to Tampa, Fla., I. & S. No. 7179 (1962), Molasses from New Orleans, La. to Peoria and Pekin, Ill. 235, I.C.C. 485 (1939). The facts in the above cases fully demonstrate why the carriers under the present law cannot meet competition of unregulated highway and water carriers. However, the proposed law now before the Congress and Senate will give the rail carriers an opportunity to fulfill their promises to give the shippers an adjustment in their freight rates that will enable them to compete with all modes of unregulated transportation. RESOLUTION OF LA JUNTA CHAMBER OF COMMERCE W. A. KNIGHT. Whereas the Nation's railroads are vital to the economy of the Nation and a necessity in time of war, and Whereas the shippers of the city of La Junta are desirous of having a dependable and a financially sound and growing industry, and Whereas it is universally acknowledged that there are inequities and injustices in the making of rates under present Federal law, and that the Nation's railroads are being prevented from fairly competing for available traffic and said railroads are being wrongfully penalized thereby to their great detriment, and Whereas the members of our community are most concerned that the railroads shall continue to be owned and operated as a part of our free enterprise system, and abhor the distinct possibility of governmental ownership if the Nation does not come to grips with the present transportation crisis, and Whereas there is now pending before the Congress of the United States :wo measures which will partially restore competitive equality among the various modes of transportation in the United States, to wit: S. 3243 and its counterpart, H.R. 11583, and S. 3242 and its counterpart, H.R. 11584, with the expectation upon enactment into law that the Nation and our community will once again be favored with a fair and equitable system of regulation and the railroads will be restored to financial health: Now, therefore, be it Resolved, That the Chamber of Commerce of the City of La Junta, Colo., does by these presents hereby endorse and favor the enactment of S. 3243, H.R. 11583, S. 3242, and H.R. 11584 into law; be it further Resolved, That the secretary of this organization furnish a copy of this resolution to Senators Warren G. Magnuson, John Carroll, Gordon Allott, and Congressmen Oren Harris and J. Edgar Chenoweth. JOHN P. PROCTOR, Secretary. LETCHER-KNOTT INDEPENDENT TRUCK MINERS ASSOCIATION, Mr. GERALD B. GREENSTEIN, Whitesburg, Ky., May 1, 1963. Chief Counsel of Committee Service Transportation Subcommittee of Service Committee on Commerce, Senate Office Building, Washington, D.C. DEAR MR. GREENSTEIN: We as an organization of approximately 300 truck mine operators, in Letcher and Knott Counties, would like for you to consider this as our request to uphold Senate bills 1061 and 1062 to be heard on May 8, 1963, at 10 a.m. Thank you in advance for your cooperation in our behalf. WILLARD RICHARDSON, President. LOCKWOOD'S ELECTRIC MOTOR SERVICE, Senator WARREN G. MAGNUSON, Washington, D.C. DEAR HONORABLE SIR: I have been reading much lately of the two transporta tion bills S. 1061 and H.R. 4700, regarding fair competition in transportation. As times change so must our mode of living change, and with this must chars our laws. Our transportation legislation at present needs a good revision. Ne laws, such as the above, should be enacted to give good, clean, fair competitic If a certain few of the common carriers are permitted certain privileges t reduce rates to increase their volume of business, then all should have these privileges. Fair competition can never exist where groups of people must figh for survival. This only leads to price wars, employing unlawful methods # acquiring business, or a outright fight to keep in existence. This sort of action does not make for good healthy business, or for a g democratic form of government. If these new enactments are properly o trolled by the antitrust legislation there could become a great reduction in freist rates, which in turn would benefit us all. I sincerely trust you will make this letter a part of your official record of thes hearings, and favorably recommend to the Congress passage of these two bills. Very truly yours, JAMES B. DEY, Sr., Vice President. Hon. WARREN G. MAGNUSON, Senate Office Building, Washington, D.C. THE MAIBEN CORP., New York, N.Y., June 3, 196 DEAR SIR: It is my understanding that shortly a bill (S. 1061 and H.R. 479 will be presented to the Senate and the House of Representatives, respective These bills are of considerable interest to me as a taxpayer, consumer, shipper for the following reasons: As a selling agent, I have always believed that any service or goods should sold on the basis of 100 cents of service or goods for the customer's dol Were I to give him less, I would be cheating him and were I to give more would go out of business. Any economies I could effect in my business relati ship with my customers should, in a large measure, be passed on to them. This is my understanding and belief of free enterprise. If you or any Members of Congress disagree with this premise, I would be pleased to hear from him. If you agree this principle is correct, then I am sure your conscience would dictate your vote for the passage of these bills. May I also request this letter be made a part of the official record of the hearings on both of these bills. For your further information, copies of this letter are being sent to the Representative of my district, the Honorable Otis G. Pike and to the Senators of New York State, the Honorable Jacob Javits and Kenneth B. Keating. May I express my thanks for your kind consideration of these bills. Free speech and free enterprise are wonderful. Let's keep the U.S.A. free. Sincerely, B. E. WURTMANN, President. Senator WARREN G. MAGNUSON, MANATEE COUNTY CHAMBER OF COMMERCE, Chairman, Committee on Commerce, Senate Office Building, Washington, D.C. DEAR SENATOR MAGNUSON: We are enclosing a copy of the resolution adopted by the Manatee County Chamber of Commerce. Sincerely yours, W. F. GEESLIN, Executive Vice President. Resolved, That the Manatee County (Fla.) Chamber of Commerce hereby endorses early favorable action on bills now pending before Congress (Senate bill 1061 and House of Representatives bill 4700) to grant to railroads the same regulatory freedom to lower freight rates that common carrier barges now have on bulk commodities such as coal, grain, sand, gravel, salt, sugar. With the greater reliance on competition and less on regulation which these bills will provide, it is anticipated that freight charges will come down and freight services will be improved. Date: August 21, 1963. ROBERT QUINN, President. MANUFACTURING CHEMISTS' ASSOCIATION, INC., Washington, D.C., April 24, 1963. Subject: S. 1061, to exempt certain carriers from minimum rate regulation in the transportation of bulk commodities, agricultural and fishery products, etc. Hon. WARREN G. MAGNUSON, Chairman, Committee on Commerce, U.S. Senate, Washington, D.C. DEAR SIR: Thank you for your letter of April 16, addressed to Mr. C. H. Mayhood, our staff transportation engineer, concerning public hearings on S. 1061 and S. 1062, the bills which would implement the President's transportation message. We have decided that it will not be necessary for us to present a statement on S. 1062 or give oral testimony on S. 1061. We do, however, have a major interest in the legislative proposals in S. 1061 and, therefore, subject to the limitations set forth in the following, the Manufacturing Chemists' Association, Inc., favors adoption of this bill, and it is respectfully requested that this letter be entered in the permanent record of these proceedings. The Manufacturing Chemists' Association, Inc., hereinafter referred to as the association, is a nonprofit trade association of chemical manufacturers, organized in 1872. Its members represent over 90 percent of the productive capacity of the chemical industry within the United States. They have more than 1,000 plants located throughout the United States, with representation is almost every State. They have a vital interest in all types of transportation in connection with the assembly of raw materials to be used in manufacturing processes and in the distribution of manufactured products. All forms of transportation are used by them for the shipment of numerous chemicals in interstate and foreign commerce. 99-564-64-pt. 2-33 In order to permit the railroads and other forms of transportation equal competitive opportunity, the association supports the principles and objectives of S. 1081, to exempt railroads and others from minimum rate regulation on bulk commodities and agricultural and fishery products, etc., provided the orderly rate procedures under section 5(a) of the Interstate Commerce Act are fully preserved and the carriers are protected against antitrust actions thereunder. The antitrust protection afforded under section 5(a) of the act extends only to actions taken under the procedures followed under approved agreements. It does not relieve against carrier actions which are collusive or in restraint of competition, such as conspiracy to destroy competitors. Subject to the foregoing amendment, the association supports S. 1061 in its entirety. We greatly appreciate the opportunity given us to express our views, and, in accordance with your request, we are sending you herewith 35 additional copies for your use. Sincerely yours, M. F. CRASS, Jr., Secretary. CITY OF MARTINSBURG, Martinsburg, W. Va., May 22, 1963. Hon. WARREN G. MAGNUSON, U.S. Senator, Senate Office Building, Washington, D.C. DEAR SENATOR MAGNUSONS As a Member of the U.S. Senate and chairman of the Commerce Committee, I am sure that you are familiar with proposed legis lation calling for removal of Interstate Commerce Commission controls over the minimum level of freight rates on shipments of agricultural and bulk commodities, as introduced under S. 1061, now to be studied by your committee. We, the city council of the city of Martinsburg, W. Va., have passed the following resolution: Be it resolved, That the city council of Martinsburg, W. Va., favorably indorse and recommend passage of S. 1061. We request that this resolution be made a part of the record and proceedings of your committee meeting. When this bill is introduced on the Senate floor, we further request and urge you to use your influence and support to insure passage. Sincerely, MEMBERS OF CITY COUNCIL, B. FRANKLIN RUSSELL, City Recorder. MARTINSBURG WOMAN'S CLUB, Hon. WARREN G. MAGNUSON, U.S. Senator, Senate Office Building, DEAR SENATOR MAGNUSON: Proposed legislation calling for removal of Inter state Commerce Commission controls over the minimum level of freight rates (2 shipments of agricultural and bulk commodities was introduced to the Senate under S. 1061, which we understand is now being studied by the Senate Co merce Committee, and that you are chairman of this committee. We are of the opinion that the passage of this legislation is essential and f the best interest of the consumer public; therefore, we have adopted the follo ing resolution and desire that it be made a part of the record and proceedi of your committee: "Be it resolved, That the Woman's Club of Martinsburg, W. Va., indorse an. recommend passage of S. 1061." As a Member of the U.S. Senate and chairman of the Senate Commerce C mittee, you are in a position to promote the passage of this bill; therefore, earnestly request your support and influence. Sincerely, MRS. T. D. MATTHEWS, President |