shipper associations, to the end that they will no longer consolidate their own freight and enjoy the full benefit of carload rates, but that all such traffic shall be diverted to the freight forwarders. Otherwise, why should it be provided that the Commission concern itself with "the extent such activities (by shipper associations) are in competition with the service of freight forwarders"? Obviously the consolidation of less than carload shipments by shipper associations and the transportation of such shipments on a nonprofit basis for the benefit of the members eliminates the necessity for employing a freight forwarder as a medium to perform the same service at a profit to the forwarder which the shippers can perform for themselves. Shippers have, in fact, exercised their constitutional right in this respect since at least 30 to 40 years prior to the appearance on the scene of so-called and public "freight forwarders" and their regulation by the Commission. The fact that the forwarders are thus restricted does not justify a selfish desire on the part of freight forwarders to monopolize this traffic at the expense of shippers. Shippers and associations of shippers have the fundamental right to consolidate and transport their shipments in any manner that will effect economy in transportation charges. CONCLUSIONS 1. The right of shippers to consolidate their own freight for the purpose of effecting the savings in freight charges pertaining to carload and other volume rates is fundamental and subject to the guaranties of the Constitution. It is a property right which cannot be taken without due process and just compensation and is not a right in the exercise of which a service to the public is involved which would subject it to regulation. 2. The Interstate Commerce Commission under the present law is vested with powers adequate to determine the status of any operation by an association of shippers as that of a freight forwarder or a lawful private enterprise not subject to regulation. 3. The basic test of the lawfulness of any shipper association is that of good faith as to which no statutory standards can be prescribed. 4. The amendment proposed by S. 1920 insofar as it is consistent with the constitutional guaranties adds nothing to the present law vesting powers in the Interstate Commerce Commission to investigate and determine the lawfulness of any operation alleged to be that of a freight forwarder. The proposed amendment also suggests inquiry into subjects remote from the basic issue and in no respect conclusive of the ultimate fact whether a particular association is or is not in reality a freight forwarder. 5. The proposed legislation is apparently inspired by and designed for the purpose of restricting or eliminating shipper associations for the selfish gain of the freight forwarders. Mr. HARRIS. We have some other requests but I think we will wait until a later time. The committee feels we have had a very informative and beneficial session of this committee today as we have in our prior hearings on this subject. We look forward to resuming again tomorrow afternoon at 2 o'clock, at which time the truckers will come on first. The committee will be adjourned until that time. (Whereupon, at 4: 20 p. m., the subcommittee recessed to reconvene at 2 p. m., on Wednesday, May 9, 1956.) X INTERSTATE AND FOREIGN COMMERCE HOUSE OF REPRESENTATIVES EIGHTY-FOURTH CONGRESS SECOND SESSION ON H. R. 6141 and H. R. 6142 BILLS TO AMEND THE INTERSTATE COMMERCE ACT, AS AMENDED, H. R. 525 A BILL TO AMEND SECTION 22 OF THE INTERSTATE COMMERCE H. R. 6208 A BILL TO AMEND PARAGRAPH (1) OF SECTION 4 OF THE H. R. 9177 A BILL TO AMEND SECTION 405 (a). PART IV, OF THE INTERSTATE H. R. 9548 A BILL TO AMEND SECTION 409 OF THE INTERSTATE COMMERCE H. R. 9771 A BILL TO AMEND SECTION 411 OF THE INTERSTATE COMMERCE H. R. 9772 A BILL TO AMEND SECTION 410 OF THE INTERSTATE COMMERCE H. R. 6111 and S. 1777 BILLS TO AMEND THE INTERSTATE COMMERCE ACT WITH PART 2 MAY 9, 10, 11, 22, 23, 24, 29, JUNE 5 AND 6, 1956 Printed for the use of the Committee on Interstate and Foreign Commerce 11. 3. Congress. House. HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE. HOUSE OF REPRESENTATIVES EIGHTY-FOURTH CONGRESS SECOND SESSION ON H. R. 6141 and H. R. 6142 BILLS TO AMEND THE INTERSTATE COMMERCE ACT, AS AMENDED, H. R. 525 A BILL TO AMEND SECTION 22 OF THE INTERSTATE COMMERCE H. R. 6208 A BILL TO AMEND PARAGRAPH (1) OF SECTION 4 OF THE H. R. 9177 A BILL TO AMEND SECTION 405 (a), PART IV, OF THE INTERSTATE H. R. 9548 A BILL TO AMEND SECTION 409 OF THE INTERSTATE COMMERCE H. R. 9771 A BILL TO AMEND SECTION 411 OF THE INTERSTATE COMMERCE H. R. 9772 A BILL TO AMEND SECTION 410 OF THE INTERSTATE COMMERCE H. R. 6111 and S. 1777 BILLS ΤΟ AMEND THE INTERSTATE COMMERCE ACT WITH MAY 9, 10, 11, 22, 23, 24, 29, JUNE 5 AND 6, 1956 Printed for the use of the Committee on Interstate and Foreign Commerce |