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only in connection with piggyback, but in connection with joint-rate and through route arrangements between motor carriers and rail carriers.

It is taking place at the present time in the Midwest and to some slight extent on the west coast. We have not seen much of it yet in the East, where, generally speaking, the railroads have taken the position that unless the trailer contains their freight and it is their trailer, they don't want to haul it.

The Pennsylvania started out on that tack. They have recently changed, and I think there is now some coordinated service on the Pennsylvania between the trucklines and the railroads. But that is still the exception rather than the rule. Our industry has always taken the position that coordinated service between the two modes would be a fine thing.

Mr. O'HARA. As I have sat here over the years, about the only people that do not come in when we have this change in theory of legislation, proposed change in policy, are the buses. They just seem to go along and don't pay much attention to us up here. I suppose they are not very much affected one way or the other.

Mr. PINKNEY. I believe you will find from their spokesman, who is to succeed me in this witness chair, that they have some concern about this present matter, so I am informed.

Mr. O'Hara. I did not know that. I was just asking the chairman a few minutes ago if they were going to appear.

Thank you, Mr. Chairman.

Mr. ROBERTS. Mr. Pinkney, in this construction reserve fund, in which the trucks will share, it does not seem to me from your statement that you make out much of a case for it. You say:

For the past several months many of our largest trucklines have been suffering from the effects of the current business recession, and it may well be that for them to continue to render good service to the public they will require such temporary financial relief.

Have you made any study of the need, or has anything come to your attention?

Mr. PINKNEY. Mr. Chairman, I have not made a detailed study in connection with that proposal. I can say that the executive committee of the American Trucking Associations, composed of elected representatives from each of the State associations, and of the several conferences of the ATA, have expressed a keen interest in it, and a belief that if the Congress should see fit to set up such a device, they would certainly like to be able to participate in it where necessary. We do have statistical data indicating that a great many of our carriers' earnings have been sharply curtailed. In fact, a great many of them are at the present well over 100 percent in their operating ratios, indicating that they are not making profits at the present time. I know of none that are in immediate although there must be some distress, that would immediately seek relief under this provision.

There has been no great clamor in our industry for financial relief. But I do think that if you put in such a proposal, which I believe to be a good one, it is not one that constitutes the giving away of Government money or anything, and you are doing it for the purpose of pre

serving our transportation system, you should make it available to such of those carriers in the other modes as might find it possibly the thing that would prevent them from going under.

Mr. ROBERTS. Could you furnish the committee with the statistical data that you mentioned !

Mr. PINKNEY. I could, sir.
(The documents referred to follow :)

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STATISTICS

25. Intercity power-unit miles-common.
26. Intercity power-unit miles-contract.
27. Tons transported in intercity service-common.
28. Tons transported in intercity service-contract.
29. Operating ratio...
30. Expense per line vehicle-mile (excluding termi-

nal).
31. Terminal expense per ton carried.

1, 537, 236, 188
188, 325, 945
65, 868, 570
9, 817, 169

99.4

1, 690, 148, 325

199, 084, 917 69, 733, 871 10, 415, 063

97.0

only in connection

and through roo

carriers.
It is taking no

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- o 195 slight extent on lo 7 In the East, who Amount Percent position that no trailer, they do The Pennsy $702,571,997 changed, and 7.403.146 Pennsylvania o still the exce- o: ... loš I. taken the -ol. 714, 160,052 ---------would be a to - Mr. O’H- --- 10.78 73,818, 507 10.33 eople that - --Is 45.17 | 324, §§§ 45.50 egislation. - ---> 16.95 114,347,174 16.01 --> 3.95 26, 118,992 3.66 to go along --> 4.34 31,097,115 4.35 they are not - - --To 6.63 46,041,699 6.45 Mr. PIN- - —s 8.82 15,640, is to succeed - - --> 615. 640. 334 86. 20 about this Mr. O'o -o-o: 5.32 34,280,439 4.80 --51. .27 2,018,001 .28 man a few _o ------- 61 11,982 ---------Thank -137 6.61 45, 511, 556 6.37 Mr. Ron - --> ** 693,426,310 97.09 which th -o-o: .52 20, 733, 742 2.91 statement For the -> 155 ---------- 1,532,342 |---------ing from - -oslö ---------- 6, 286,071 ---------for them --> 327 .30 15, 980, 013 2.23 such to is of L--------- 5,043,337 ------- :Have --594 1.00 6,935,786 . 97 attention - Mr. P. o,428 ho in conn- 35,571,765 mittee ,889 represo confer "{{}|---------belief - - ----------would We do --- sons ossoms. - - Pinkney. The committee will re--- - sisternoon; I believe the next witness - - . Na+: - - o J. Corber, National Association of reces until 1:30 this afternoon. one hearing recessed, to reconvene at 1:30

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AFTERNOON SESSION

Mr. Roberts. The subcommittee will please be in order.

Our next witness is Mr. Robert J. Corber, National Association of Motor Bus Operators, Washington, D.C.

Mr. Corber, the committee welcomes you, and you may proceed with your statement.

STATEMENT OF ROBERT J. CORBER, COUNSEL, ACCOMPANIED BY
HAROLD R. HOSEA, DIRECTOR OF RESEARCH, NATIONAL ASS0-
CIATION OF MOTOR BUS OPERATORS, WASHINGTON, D. C.

Mr. CoRBER. Thank you, Mr. Chairman. My name is Robert J. Corber. I am counsel for the National Association of Motor Bus Operators. My appearance today is on behalf of that association. It is the national trade association for the interstate motorbus industry. It was our hope, Mr. Chairman, that we would have someone from one of the operating companies among the membership of NAMBO in making this appearance today, but it wasn't possible in the time available. In lieu of that, I have brought with me two statements which were made on behalf of the national body before the Surface Transportation Subcommittee of the Senate Interstate and Foreign Commerce Committee during its investigation of the current railroad problems. Those statements, were made by Mr. Claude Jessup, who is the president and general manager of Virginia Stage Lines at Charlottesville, Va., and Mr. Arthur S. Genet, who is president of the Greyhound Corp. Both of these gentlemen are also directors of the national body. I would like to request, Mr. Chairman, that those statements be received in the record as a part of these hearings. They are, as I say, the statements of representatives of operating companies, and they are directed to matters under consideration by the subcommittee. Mr. Roberts. Without objection, the statements will be received. (The statements referred to follow:)

STATEMENT of NATIONAL Association of MoToR BUs OPERATORs

My name is Claude A. Jessup. I am president and general manager of Virginia Stage Lines, Inc., Charlottesville, Va., an affiliate of the National Trailways System. I am also a director of the National Association of Motor Bus Operators,

I appear before your committee today on behalf of the National Association of Motor Bus Operators. NAMBO is the national trade association for the intercity motorbus industry. It serves as spokesman for nearly 1,000 carriers which account for about three-fourths of the intercity motorbus transportation in the United States.

The intercity bus industry serves all the major cities in this country. What is even more important, it furnishes the only means of public passenger transport in thousands of communities which, for economic reasons, the railroads and airlines do not serve. The bus industry also supplies the only package express and firstclass pouch mail service in many of these communities. Service to the smaller communities is growing in importance with the railroads’ gradual withdrawal of trains. At the present time, exclusive of mass commutation travel, intercity buses transport some 35 percent more passengers than the railroads.

I might explain that my purpose here is not to belittle the seriousness of the

railroads' plight or to attempt to throw roadblocks in the path of their efforts to

obtain relief. Their testimony clearly indicates that they are rapidly moving

28621—58—22

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- -- - - --member of our national transportation system, the - --- - ----trotaly oncerned about this growing crisis which - -ss-staruu industry. No one would seriously question -------n “ssential part of our transportation structure. - **anies, I might add. The Nation cannot afford to - ----> ---ansportation through financial failure. Accord------ory supports efforts of the railroads to obtain legisla--> -e owinted out that the intercity bus industry has -----> -- -nuke those of the railroads. It is hoped that some --alos which will enable the transportation industry as ----out-su iifficulties. - so very proposal advanced by the railroads should be - is rear oroposals, it is important not to lose sight of the ----- so ou system is made up of a number of different modes *r-busing its part to our Nation's transportation needs. ... is usinsiustry and another is, of course, the railroads. suru transportation system properly serving national ... ---a - Federal regulation to weld these various forms of ---sunated system which can serve the broad national ---issureation even where some of their interests may s so-y oxpressed its views in this regard in the national ... ore t was provided that regulation of carriers subject ---------e. Act should preserve the inherent advantages of each

s -- * usi of developing, coordinating, and preserving a na-
. . . . ssee by water, highway, and rail, as well as other means,
J = <sis of the commerce of the United States, of the Postal
is e-ouai, iefense.” (Act Sept. 18, 1940, 54 Stat. 899.)
. ....~sis or the railroads are consistent with these principles.
- - - - - one proposals to eliminate the burdensome transpor-
~ s , , as proposals for tax relief in connection with the re-

-------is-tou of new equipment and facilities, (3) the proposal
... --> assie on public transportation by so-called private car-

s- o ossablish Federal responsibility in the discontinuance
. ..s...-, orations, and (5) the proposal to provide for com-
. . oe intercity bus industry supports these proposals because,
- “... sevenational interests by benefiting carriers in a way

* ***** * is sairoads, however, does not meet these requirements

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s ~ *... onsit is the proposal to establish the three so-called - is ss to gives the railroads the almost unrestricted right - - - -es of transportation. This would only result in weaken

...s---sova system as a whole, and will not help the rails to
--~~~~

ses watters in detail, I should like to correct some mis-
* ...o nave developed in the course of the presentation by
---, -, -, -ou of the railroad testimony appears to be that the
* ...a of transportation experiencing critical times. This |

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so......so ovedicament of the intercity bus industry is not a . . . ~~~~ or to class I intercity bus companies (i.e., those

- s “s of So,000 or more) for which final reports are - * * * ourth, incurred overall deficits, and 4 others just Jisures on a current basis are not available, it is o, o smaller intercity carriers, which far outnumber the s we a sore precarious financial condition. Many have J. A revent study in the State of New York showed, Joo resent of all companies failed in less than 2 years.” ... Joe the financial difficulty of the intercity bus in

- - Ass - oivos showed a combined operating ratio of over 90

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- ~ Joy obes of transportation, or (3), whether such rates - * * * * opetition of any other mode of ogo.

^ No. owshoe Aointed by the Governor for the Študy of the

*- \\ S. So News sus Industry, State of New York, Transit study

• * * *

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