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Common Carrier Conference - Irregular Route, New Orleans, LA, March 10, 1969
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Common Carrier Conference - Irregular Route, New Orleans, LA, March 10, 1969
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Gerald R. Ford Congressional Papers
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The original documents are located in Box D26, folder "Common Carrier Conference - Irregular Route, New Orleans, LA, March 10, 1969" of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. The Council donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Distribution; 10 capies Mr. Ford office Copy AN ADDRESS BY REP. GERALD R. FORD, R-MICH. REPUBLICAN LEADER, U.S. HOUSE OF REPRESENTATIVES BEFORE THE COMMON CARRIER CONFERENCE IRREGULAR ROUTE NEW ORLEANS, LOUISIANA MONDAY, MARCH 10, 1969 FOR RELEASE AT 9:30 AM. MONDAY "THE CHALLENGE AND THE OPPORTUNITY" I am delighted to be here. As you know, every man's life is alternately filled with pleasures and duties. My appearance here is a pleasurable break in my official routine, which contains more duties than I care to contemplate. The other day I ran across this definition of duty: "Duty is what the normal man looks forward to with distaste, does with reluctance, and boasts about forever after. " Your very capable executive director, Henry van Daalen, has suggested that I "talk transportation" this morning -- not as a duty but simply because this is the topic you are most interested in. I will discuss transportation problems to some extent, but I would like also to touch on the broad sweep of problems that face us as a people and a Nation. This is, of course, a special kind of audience. When some people hear the name of your organization - Common Carrier Conference, Irregular Route -- they don't have the slightest idea what it means. That reminds me of a story Henry told the other day about the friend of his who said to him one evening: "You know, Henry, you're common, you're a carrier, and you're irregular. I don't know how you could get much worse than that." Of course that was said in jest. Needless to add, Henry is a very uncommon fellow who is doing fine work in a very tough job. Speaking of tough jobs, I would point ogt there are some other fellows who recently were handed mighty difficult assignments - the men who have accepted appointment to President Nixon's Cabinet. And of all those difficult assignments, one of the toughest definitely is that given to John Volpe, the Secretary of Transportation. When the Department of Transportati on was created, responsibility for many aspects of land and air transportation was placed in one man's hands -- the DOT Secretary. GERALD FORD LIBRARY Digitized from Box D26 of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library -2- DOT has been nexistence for nearly two years, but the department has not yet laid down clear guidelines for effective cooperation between the groups representing the various transport modes within DOT. DOT also must greatly improve upon its relations with other departments of the Federal Government which influence national transportation policy and with the regulatory agencies involved. So John Volpe is faced with a great challenge -- both in seeking to improve the functioning of DOT as a part of the federal government structure and in dealing with the tremendous transportation problems posed by the fantastic growth of this country. It is estimated, for instance, that if the demand for transportation continues to match America's anticipated economic growth we will have to double our transportation capacity in less than 20 years. To do this, we have to know where we are and where we are going. We have to decide how best to get to where we want to go. We have to formulate a national transportation policy and then see to it that our day-by-day actions point toward the achievement of our desired objectives. There may be some who now see an opportunity for a legislative breakthrough in transportation -- an Omnibus Transportation Act as a vehicle to implement a national transportation policy. We all know that Congress has been dealing with transportation on a fragmented basis. We know that the return on investment does not make the regulated transportation industry attractive to new capital and that the industry should be made more responsive to the nation's needs for movement of products and people. Shall I engage in high-flown rhetoric and raise fond hopes? A look at the past may indicate what is likely to happen in the months ahead. Every Congress brings forth resolutions aimed at producing a full-blown transportation plan for the country, a plan which would articulate an overall policy to be carried out by the administration. Realistically, the history of omnibus transportation bills is not a success story. Remember the efforts which began with the Kennedy Administration? A broad bill to open competition to all modes of transportation on terms of equality was submitted. At least that was the announced purpose of the bill. Deregulation it came to be called. -3- The very idea of such open competition and a minimum of government regulation appealed immediately to the shipping public. And the prospect of getting the ever-reviled Interstate Commerce Commission out of theact appealed to many others as well. Then came the congressional committee hearings and the opportunity for everyone to endorse the principle he claimed to espouse. It soon became evident that everyone had reservations of one sort or another. Shippers liked the idea of deregulation if it would mean lower tariffs. But who would make sure of this? The only machinery at hand was the poor old ICC. So when all the testimony was in, it became apparent that the shipping public was all in favor of deregulation as long as it was closely regulated. I am not making an attempt at humor. The various elements of the transportation industry were wildly enthusiastic about getting the ICC off their backs -- as long as it kept an eye on the rest of the industry. And so the villain of the first act became the hero of the last act. One Congress came and went with only hearings and meetings to show for it. When another Congress came along so did the deregulation legislation, and the whole scenario was run through once more. At the end of the first session of the 88th Congress the House Committee on Interstate and Foreign Commerce thought it had finally put together an omnibus transportation bill that would work. It was carefully checked out with the rail- roads, the trucking interests and the barge lines, as well as with the freight forwarders and shippers. Nobody was happy with everything, but each seemed to feel that on balance his interests were well served. So the Committee reported a new bill, H.R. 9903. You know what happened. It was sunk without a trace in the House Rules Committee. And the torpedo that did it was fired by the seaports. Oren Harris of Arkansas, a most able and conscientious legislator, who was then House Commerce Committee chairman, vowed that he would never entertain another omnibus bill. Congressman Harris is now Judge Harris, but the Committee has continued to abide by that decision. Omnibus legislation dealing with transportation probably is doomed before it is born. Apparently no detailed plan can keep up with the rapid changes, and the needs for and means of transportation. So we must handle it as we go. -4- There is certainly need for a well-thought-out and well-expressed national policy on transportation, but it is bound to be very general in its terms. And making sure that legislation considered by the Commerce Committees will promote even the most explicit policy is enough to tax the patience of a Job and the wisdom of a Solomon. And now as I stand here before this audience I feel compelled to comment on what I am sure is the item of chief interest to you -- truck weight and size legislation. Richt now DOT is in the process of examining the question. DOT officials have met with officials of the American Trucking Association, who have presented their case. But at this time there is no indication what position DOT will take. It also is too early to take a reading in the Congress. But I will make some comment about the situation in the House. We all remember that the chief reason the size and weight bill ran into trouble in the House last year after passing the Senate was that it contained no length limitation. And so the bill died in the House Rules Committee. It might be anticipated that the House Public Works Committee this year will try to write a length limitation into the bill. The task of formulating a length limitation acceptable throughout the country is most complex. I am informed that in the West and Midwest lengths of 100 to 105 feet would be accepted while in the East and South a 65-foot length scares people to death. So the length limit problem is a very sticky one, and I don't pretend to know the answer. Looking at the size and weight bill at this time, I can only conclude that we must wait and see what develops. Neither would I make any prediction on legislation to take cattle out of the agricultural exemption. That bill has not yet been introduced in the House, but judging from past experience with legislation of this type it will have a rough time. I say that because making changes in the agricultural exemption is like trying to abolish the National Guard. As I mentioned, the whole omnibus transportation bill foundered on it a few years ago. -5- Last year the co-ops were restricted to 15 per cent of non-agricultural hauling, and the government business was excluded from that amount under terms of Public Law 90-433. The bill did not really go to the heart of the exemption matter. The fact simply was that some of the co-ops were set up to carry agricultural stuff but actually were munitions haulers for the government. I am happy to note that this Conference supports the concept of a strong Interstate Commerce Commission. That happens also to be my view. I talked earlier about the need to improve coordination within the Department of Transportation and that department's relations with other agencies of the Federal Government. I think it is also appropriate at this time to renew our determination that the Highway Trust Fund will be kept inviolate -- that the funds paid into the Highway Trust Fund by highway users will be used only for highway purposes. I urge, too, that the interstate highway program move ahead smoothly and not be subject to freezes and to movement by fits and starts as it has in recent years. We have enough problems on the domestic scene -- federal, state and local -- without the Federal Government helping to create more problems. In speaking of our domestic problems, may I call your attention to what might be described as a political phenomenon. It is simply this: That if you will observe closely, you will see that President Nixon is seeking to make good on all the campaign promises he made in the field of domestic policy as well as foreign affairs. About half of the directives the President has sent to government agencies and departments to date are based on pledges he made during the campaign. For the most part, they deal with the need to reorganize the work of the Federal Government and to return more money and power to the states and to the private sector in this country. Nixon legislative proposals also are in the works, aimed at implementing President Nixon's campaign promises. To carry out some of his plans to reorganize the Federal Government, Mr. Nixon needs special authority only the Congress can give -- authority which Presidents Johnson, Kennedy, Eisenhower and Truman enjoyed before him. The Senate has already passed a bill to invest Mr. Nixon with such power, and the House will act soon. -6- Some observers are complaining that the governmental pace in Washington has slowed. I think most Americans approve. I believe that after eight years of experimentation, Americans want good, sound, efficient government which produces results -- not just more spending programs. There will be a Nixon program. It is being shaped now -- and very carefully. It will be a solid program designed to bring the American people together and to move us forward as a Nation. There will be a shift in emphasis -- policy changes flowing from my party's basic philosophy of government. The problems the Nixon Administration inherited upon assuming office pose a tremendous challenge for the new President and his administrative team. But I also see a great opportunity at this point in time. an opportunity to swing America around and use the dynamic thrust of the free enterprise system to propel us toward new greatness as a people. Without the help of the men in this room and of other concerned Americans, President Nixon can do little. With the help of the people, he cannot fail. Let us rise to the challenge. Let us lay aside conflicting political loyalties and dedicate ourselves to the building of a new and better America. Let us usher in an age of reason in America -- an era of conciliation and reconciliation and of generosity of spirit. This is a time of great challenge for America but also a time of glowing opportunity -- an opportunity to move in new directions under new leadership to vanquish the problems which surround US. Let us accept the challenge with clear vision and clear heads. Let us seize the opportunity with stout hearts and a determination that we will move forward as a people -- together. Let us take as a motto the wise words of the Greek philosopher Plutarch, who said: "Many things which cannot be overcome when they are taken together yield themselves when taken little by little." We shall go forward in faith. And we shall prevail. For faith is the talisman of greatness for America, and America is strong in faith. # # # AM AUDREDD DI AEP. GERALD M. rund, K-NICH. REPUBLICAN LEADER, U.S. HOUSE OF REPRESENTATIVES BEFORE THE COMMON CARRIER CONFERENCE -- IRREGULAR ROUTE NEW ORLEANS, LOUISIANA MONDAY, MARCH 10, 1969 9:30 BUSENASE AT 10:30 AM. MINDAY "THE CHALLENGE AND THE OPPORTUNITY" I am delighted to be here. As you know, every man's life is alternately filled with pleasures and dutibus. My appearance here is a pleasurable break in my official reutine, which contains more duties than I came to contemplate. The other day I ran across this definition of duty: "Duty is what the normal man looks forward to with distaste, does with reluctance, and bonsts about forever after. " Your very espable executive director, Menry van Bealen, has suggested that I "talk transportation" this morning -- net as a duty but simply because this is the topic you are most interested in. I will discuss transportation problems to some extent, but I would like also to touch on the broad sweep of problems that face us as a people and a Nation. This is, of course, a special kind of audience. When some people hear the name of your organisation -- Common Carrier Conference, Irregular Route -- they don't have the slightest idea what it means. That reminds me of a story Henry told the other day -- about the friend of his who said to him one evening: "You know, Menry, you're common, you're a carrier, and you're irregular. I don't know how you could get much worse than that." Of course that was said in jest. Needless to add, Henry is a very uncommon fellow who is doing fine work in a very tough jeb. Speeking of tough jobs, I would point oft there are some other fellows who recently were handed nighty difficult assignments -- the men who have accepted appointment to President Nixon's Cabinet. And of all these difficult assignments, one of the toughest definitely is that given to John Volps, the Secretary of Transportation. When the Department of Transportati on was created, responsibility for many aspects of land and air transportation was placed in one man's hands -- the DOT Secretary. & DOT has been insexistence for nearly two years, but the department has not yet laid down clear guidelines for effective cooperation between the groups representing the various transport modes within DOT. DOT also must greatly improve upon its relations with other departments of the Federal Government which influence national transportation policy and with the regulatory agencies invelved. So John Volpe is faced with a great challenge -- both in seeking to improve the functioning of DOT as a part of the federal government structure and in dealing with the tremendous transportation problems posed by the fantastic growth of this country. It is estimated, for instance, that if the demand for transportation continues to match America's anticipated economic growth we will have to double our transportation capacity in less than 20 years. To do this, ve have to know where we are and where we are going. We have to decide how best to get to where we want to go. We have to formulate a national transportation policy and then see to it that our day-by-day actions point toward the achievement of our desired objectives. There may be some who now see an opportunity for a legislative breakthrough in transportation -- an Omnibus Transportation Act as a vehicle to implement a national transportation policy. We all know that Congress has been dealing with transportation on a fraguented basis. We know that the return on investment dees not make the regulated transportation industry attractive to new capital and that the industry should be made more responsive to the nation's needs for movement of products and people. Shall I engage in high-Flown rheteric and raise fond hopes? A look at the past may indicate what is likely to happen in the months shead. Every Congress brings forth reselutions sined at producing a full-Blown transportation plan for the country, a plan which would articulate an overall policy to be carried out by the administration. Realistically, the history of omnibus transportation bills is not a success story. Remember the efferts which began with the Kennedy Administration? A broad bill to ppen competition to all modes of transportation on terms of equality was submitted. At least that was the announced purpose of the bill. Deregulation it cama to be called. -3- The very idea of such open competition and a minimum of government regulation appealed immediately to the shipping public. And the prospect of getting the over=ráviled Interstate Commerce Commission out of the act appealed to many others as well. Then came the congressional committee hearings and the opportunity for everyone to endorse the principle he claimed to espouse. It soon became evident that everyone had reservations of one sort or another. Shippers liked the idea of deregulation if it would mean lower tariffs. who But/would make sure of this? The only machinery at hadd was the poor old ICC. So when all the testimeny was in, it because apparent that the shipping public was all in favor of deregulation as long as it was closely regulated. I am not making an attempt at humor. The various elements of the transportation industry were wildly enthusisstic about getting the ICC off their backs -- as long as it kept an eye on the rest of the industry. And so the villain of the first act became the hero of the last act. One Congress came and went with only hearings and meetings to show for it. When another Congress came along so did the deregulation legislation, and the whole scenario was runthhrough once more. At the end of the first session of the 88th Congress the House Committee on Interstate and Foreign Commerce thought it had finally put tegether an canibus transportation bill that would work. It was carefully checked out with the rail- roads, the trucking interests and the barge lines, as well as with the freight forwarders and shippers. Mobody was happy with everything, but each semmed to feel that on balance his interests were well served. So the Committee reported a new bill, N.R. 9903. You know what happened. It was sunk without a trace in the House Bules Committee. And the terpodo that did it was fired by the sesports. Oren Marris of Arkansas, a most able and conscientious legislater, who was then House Commerce Committee chairman, vound that he would never entertain another contibus bill. Congressmen Harris is now Judge Marris, but the Committee has continued to abide by that decision. Ounibus legislation desling with transportation probably is docued before it is born. Apparently no detailed phan can keep up with the rapid changes, and the needs for and means of transportation. so we must handle it as we to. There is certainly need for a well-thought-out and well-expressed national policy on transportation, but it is bound to be very general in its terms. And making sure that legislation considered by the Commerce Committees will promote even the most explicit policy is enough to tax the patience of a Job and the wisdom of a Solemen. And now as I stand here before this sudience I feel compelled to comment on what I am sure is the item of chief interest to you -- truck weight and sizes legislation. in Right now DOT is/the process of examining the question. DOT efficials have met with officials of the American Trucking Association, who have presented their case. But at this time there is no indication what position DOT will take. It also is too early to take a reading in the Congress. But I will make some comment about the situation in the House. We all sumember that the chief reason the size and whight bill ran into trouble in the House last year after passing the Senate was that it contained no length limitation. And so the bill died in the House Rules Committee. It is expected that the House Public Works Committee this year will try to write a length ldmitation into the bill. The task of formulating a length limitation acceptable throughout the country is most complex. I on informed that in the West and Midwest lengths of 100 to 105 feet would be accepted while in the East and South a 65-foot length scares people to death. So the length limit problem is a very sticky one, and I don't protend to know the answer. Looking at the size and weight bill at this time, I can only conclude that we must wait and see what develops. Neither would I make any prediction on legislation to take cattle out of the agrie: ltural exemption. That bill has not yet been introduced in the House, but judging from past experience with legislation of this type it will have a rough time. I say that because making changes in the agricultural exemption is like cursing the National Guard. he I mentioned, the whole canibus transportation bill foundered on it a few years ago. -5- Last year the co-ops were restricted to 15 per cent of non-agricultural hauling, and the government business was excluded from that amount under terms of Public Law 90-433. The reason did not really go to the heart of the exemption but the fact that some of the co-ops were set up to carry agricultural stuff but actually were only munitions haulers for the government. I am happy to note that this Conference supports the concept of a strong Interstate Commerce Commission. That happens also to be my view. I talked earlier about the need to improve coordination within the Department of Transportation and that department's regations with other agencies of the Federal Government. I think it is also appropriate at this time to renew our determination that the Highway Trust Fund will be kept invielate -- that the funds paid into the Highway Trust Fund by highway users will be used only for highway purposes. I urge, too, that the interstate highway program move shead smoothly and not be subject to freezes and to movement by fits and starts as it has in recent years. We have enough problems on the demestic scene -- federal, state and local -- without the Federal Government helping to create more problems. In spesking of our domestic problems, may I call your attention to what might be described as a political phenomenon. It is simply this: That if you will observe closely, you will see that President Nixon is seeking to make good on all the compaign premises he made in the field of domestic policy as well as foreign affairs. About half of the directives the President has sent to government agencies and departments to date are based on pledges he made during the campaign. For the most part, they deal with the need to reorganize the work of the Federal Government and to return more money and power to the states and to the provate sector in this country. Nixon legislative proposals also are in the works, sined at implementing President Mixon's campaign promises. To carry out some of his plans to reorganize the Federal Government, Mr. Nixon needs special authority only the Congress can give -- authority which Presidents Johnson, Kennedy, Eisenhewer and Truman enjoyed before him. The Senate has already passed a billte invest Mr. Nixon with such power, and the House will act soon. -6- Some observers are complaining that the governmental pace in Washington has slowed. I think most Americans approve. I believe that after eight years of experimentation, Americans want good, sound, efficient government which produces results -- not just more spending programs. There will be a Nixon program. It is being shaped now -- and very carefully. It will be a solid program designed to bring the American people together and to move us forward as a Nation. There will be a shift in emphasis -- policy changes flowing from my party's basic philosophy of government. The problems the Nixon Administration inherited upon assuming office pose a tremendous challenge for the new President and his administrative team. But I also see a great opportunity at this point in time.-- an opportunity to swing America around and use the dynamic thrust of the free enterprise system to propel us toward newwgreatness as & people. Without the help of the men in this room and of other concerned Americans, President Nixon can do little. With the help of the people, he cannot fail. Let us rise to the challenge. Let us lay aside conflicting political loyalties and dedicate ourselves to the building of a new and better America. Let us usherein an age of reason in America -- an era of conciliation and recenciliation and of generosity of spirit. This is a time of great challenge for America but also a time of glowing opportunity -- an opportunity to move in new directions under new leadership to vanquish the problems which surround us. Let us accept the challenge with clear vision and clear heads. Let us seize the opportunity with stout hearts and a determination that we will move forward as a people -- together. Let us take as a motto the wise words of the Greek philosopher Plutarch, who said: "Many things which cannot be overcome when they are taken together yield themselves when taken little." We shall go forward in faith. And we shall prevail. For faith is the talisman of greatness for America, and America is strong in faith. # # # Common Carrier Conference ET goveg, Rte Am Chim. Aske friends of 753-7160 March M Now Orleans Hotel Monte Leone Common Sarrier Conf 2 amstrucking Heary van Dallen logic: Transportation HewBerry x dele 364 Internation Comm Act (1887=?)=RR's placed under ICC 1935 Congress passed "Act'I "of The motor trucks ander regul asuabe des for hime 1 Since Ren periodic around 's= = In 58- a lot Jogen storms etc. pland unles reful They at interputation van Jemps hadben received for regal - Terms wanted u # = Partol Phicles for the candy regul are not larty 90 - 433 dealting og, coop & Pausport Pren The cosps has Geenlyingsted as regess ds conception help- The Farmes FORD & LIBRARY GERALD 90-433 Adamto transp -The coop tonnage ICC now I settingly 15% then Totalgross The gd rules on This pt now- The am Trude Aain tom Sup So fry. to oftain regul The transport of ord, livestock - This consurver ded. They's 5 Sw 748-Seal = to Therasypp father logislations wgt w/tho nate Cattlemen to Assin Wehe toy, LogetSome mate stability 7 Expect vide hill to be certro ty 2 Expect Repr Staggers (3) to into Sey Magneson Companion bill in the House & =Sey = calflement recogn the Dase That ivestock carriers are an samepoor is aproblem today that The motor carriers where 1935 = Nontgetthe legion conlege The shippers (attenaen) agree 20 of the livestock carrier are going out of bijnessea yr Sizet Wsight Bilf when Dana thief exterest St passage the Senate + wasresty out in the He Schevengel GERALD ALD LIBRARY FORD The baser issues 2 Size +WayatBEll - bery, I The concept regul by ICC wast to see what Nolps has to say uhe Suppr The a strong ICE a Nixonlast Durks named ER-Pp. = The IC.C. dept to the Engress Jackson of Calp I relects durman for amounton mfrs ford could engh the welds hosp The Hiway Trust Ford concept attempt telee Hisvay Two T Eap it inviote - baty Phese was Juset for unrelated purposes to I types Insury of with and transf private cancer -lyest 2 Contract carrier - smellest 3 I Common canned Reg, Rte (1 ( 1 - dug in commodities- H RegRte CC 1 only cart.nte a pull GERALD FORD $ Ing Rte CC B Tenefrial franchise ( mostly speciad commodittes 1 5,789 5 Bill to table approps. tosty Aderance off The Budgeth Calendar No. 1005 90TH CONGRESS } SENATE { REPORT 2d Session No. 1026 VEHICLE WEIGHTS AND DIMENSIONS REPORT OF THE COMMITTEE ON PUBLIC WORKS UNITED STATES SENATE TO ACCOMPANY S. 2658 (II) MARCH 27, 1968.-Ordered to be printed U.S. GOVERNMENT PRINTING OFFICE 91-589 WASHINGTON : 1968 Calendar No. 1005 90TH CONGRESS SENATE REPORT 2d Session No. 1026 VEHICLE WEIGHTS AND DIMENSIONS ЛИА STHOKIW 3 MARCH 27, 1968.-Ordered to be printed COMMITTEE ON PUBLIC WORKS Mr. RANDOLPH, from the Committee on Public Works, submitted the following JENNINGS RANDOLPH, West Virginia, Chairman STEPHEN M. YOUNG, Ohio JOHN SHERMAN COOPER, Kentucky EDMUND S. MUSKIE, Maine HIRAM L. FONG, Hawaii REPORT ERNEST GRUENING, Alaska J. CALEB BOGGS, Delaware B. EVERETT JORDAN, North Carolina GEORGE MURPHY, California DANIEL K. INOUYE, Hawaii LEN B. JORDAN, Idaho [To accompany S. 2658] BIRCH BAYH, Indiana HOWARD H. BAKER, JR., Tennessee JOSEPH M. MONTOYA, New Mexico The Committee on Public Works, to which was referred the bill JOSEPH D. TYDINGS, Maryland WILLIAM B. SPONG, JR., Virginia (S. 2658) to amend section 127 of title 23 of the United States Code RICHARD B. ROYCE, Chief Clerk and Staff Director relating to vehicle weight and width limitations on the Interstate M. BARRY MEYER, Counsel System, in order to make certain increases in such limitations, having BAILEY GUARD, Assistant Chief Clerk (Minority) considered the same, reports favorably thereon with amendments and RICHARD E. GERRISH, Minority Staff Director recommends that the bill as amended do pass. JOSEPH F. VAN VLADRICKEN, LEON G. BILLINGS, J. B. HUYETT, Jr., and RICHARD D. GRUNDY, Professional Staff Members I. PURPOSE OF THE LEGISLATION (II) S. 2658 as reported with amendments will facilitate a more efficient and economic use of the Interstate System and insure that the vehicles using that system will not unreasonably or unnecessarily impair its serviceability or durability. The limits established by S. 2658 are intended to set the maximums which most closely strike the balance between productive use and reasonable life of pavement, subsurface, and structures. Of course, weights and widths of vehicles are only one factor to be considered in the durability of highway life. Proper design, construction and maintenance, and the effects of climate are also extremely importent. The proposed legislation continues the congressional policy of providing limits regarding maximum permissible use of weights and dimensions on the Interstate System in order to adequately protect the Federal investment. This determination is based on the condition that such maximums will be properly implemented and enforced by the States, which continue to bear the ultimate responsibility for permitting vehicles to operate within these weight and width ranges. The committee most emphatically reaffirms that the responsibility for legal maximum allowable limits and control of sizes and weights of vehicles operating on the Interstate System, as well as on all the other road systems of the United States, rests with the individual States. The legislation is (1) 2 3 not intended as a Federal determination that such weights should be on such standards were to be presented to the Congress not later permitted, nor does it imply that roads other than those on the Inter- than March 1, 1959. state System are capable of carrying such loads. It is a statement of On August 18, 1964, the Secretary of Commerce transmitted to policy that permitting such weights will not do violence to the Federal the Congress the requested study and recommendations (H. Doc. interest in the development of a nationwide network of major traffic 354, 88th Cong., 2d sess.). service highways. On November 15, 1967, Senator Magnuson, on behalf of himself II. COMMITTEE AMENDMENTS and 21 other Members of the Senate, introduced S. 2658, which would amend section 127, title 23, United States Code, by providing for As reported by the Committee on Public Works, the bill would be changes in vehicle weights and dimensions as follows: single axle, amended by changing the permissible tandem weight from 36,000 20,000 pounds; tandem axle, 36,000 pounds; and overall gross weight pounds to 34,000 pounds, by changing the constant factor in the gross as arrived at by application of the following formula: weight formula from 40 to 36, and by changing the definitions of the variables in the formula to give emphasis to interior axle spacings as W=500 well as the overall wheelbase. The effect of these amendments is to reduce the weights which could be permitted pursuant to this legisla- where W=overall gross weight of the vehicle plus load, L=overall tion while at the same time providing for significant increases over wheel base or the distance in feet between the centers of the first and present limits. The committee amendments are consistent with the last axles in the vehicle or vehicle combination, and N=number of weight recommendations of the Department of Transportation and the axles. American Association of State Highway Officials. IV. HEARINGS III. BACKGROUND OF THE LEGISLATION Following the announcement of hearings, the committee received Until July 1, 1956, the regulation of motor vehicle weights and a number of requests for appearances from interested groups. Four dimensions was a matter solely within the province of the individual days of hearings were held on the subject. The organization witnesses States. The Federal-Aid Highway Act of 1956 established maximum who appeared were: permissible weights and widths for vehicles operating on the Inter- American Trucking Associations. state System. Though it constituted a departure from the policy of the American Association of State Highway Officials. past, this action was taken by the Congress in order to protect the National Association of Motor Bus Operators. Federal investment in interstate highways and to insure the safety of American Transit Association. the traveling public. Preexisting Federal-aid statutes were silent on American Automobile Association. American Farm Bureau Federation. the subject. The language of the 1956 act, now section 127, title 23, United The Department of Transportation presented its views, as did two States Code, "Highways," provides that the maximum allowable State senators and the following U.S. Senators: weight and dimensions for vehicles on the Interstate System are: Hon. Frank E. Moss. Hon. Thomas Kuchel. Per single axle, 18,000 pounds; Hon. Clifford Hansen. Per tandem axle, 32,000 pounds; Hon. Warren Magnuson. Overall gross weight, 73,280 pounds; In addition, a number of statements were received for the record; Width, 96 inches; among these were expression of views by the National League of Cities, or the Association of American Railroads, as well as from manufacturers the corresponding weights and dimensions permitted under State and producers of the many products transported by trucks. law or regulation in effect on July 1, 1956, whichever is greater. Among the major issues presented to the committee were those Any State which by law permits use of the Interstate System by dealing with highway safety, economic impact, effect of increases vehicles with maximum weight and width greater than those estab- on road systems and structures and the contributions of the various lished under the provisions of section 127 will continue to be penalized user beneficiaries. by the loss of apportioned funds for any fiscal year during which the Evidence presented to the committee with regard to highway safety violation occurs. did not demonstrate a meaningful relationship between the sizes and The basic standards adopted by the Congress were those which had weights under consideration and the incidence of traffic accidents. been adopted by the American Association of State Highway Officials There is, however, a relationship between the physical capabilities during the period 1944-46. of large vehicles and highway safety involving such matters as horse- As a companion measure to the enactment of the limitations on power-weight ratios, braking capacity, and linkage and coupling the sizes and weights of motor vehicles, the Congress in the 1956 act devices. The Department of Transportation requested inclusion of also directed the Secretary of Commerce to take all action possible authority to set national standards with regard to these factors. to expedite the conduct of a series of tests, later known as the Illinois The committee, in not including such authority in the bill as reported, road tests, for the purpose of determining the maximum desirable in no way intends to indicate that these are not important factors or dimensions and weights for vehicles operating on the Federal-aid that they are not worthy of consideration. However, authority for highway systems, including the Interstate System. Recommendations such controls already rests with the Department of Transportation. 4 5 The act creating the Department of Transportation, Public Law While not subject to the jurisdiction of this committee, the 89-670, transferred to the Department all of the authority over question of the contribution to the trust fund made by the various safety of motor vehicles operating in interstate commerce which had classes of users was raised. Trucks of all sizes now contribute in excess previously been administered by the Interstate Commerce Com- of $1,700 million to the trust fund annually. Whether this is sufficient mission. In addition, the Department administers the National and whether the level of contribution should be raised as a result of Traffic and Motor Vehicle Safety Act of 1966, Public Law 89-563, the enactment of S. 2658 is a subject for analysis, determination, and pursuant to which performance standards for vehicles and equipment recommendation by other committees of the Congress. are establisehd by the Department. Further, the Highway Safety In addition to the 4 days of hearings on the legislation, the com- Act of 1966, Public Law 89-564, authorizes and directs the Secretary mittee more recently completed 3 days of exhaustive and intensive to insure that each State will have a highway safety program which hearings devoted to the subject of highway bridges. While the hearings will insure safe use of our highways. were not intended as a further exploration of the impact of vehicular The committee believes that this existing authority is broad enough sizes and weights on bridges, that subject is thoroughly interwoven to provide for effective control of these important safety requirements with anything dealing with bridge safety. Questions relating to the for large motor vehicles and that it should be exercised. Should experi- impact of large vehicles on bridge life, and the impact of large vehicles ence prove that a gap in authority exists, prompt legislative action will on older bridges, most of which are not located on the Interstate be taken by the appropriate committees of Congress to correct the System, were thoroughly explored. With the knowledge gained situation. through these bridge hearings, the committee was greatly assisted in V. EFFECT OF THIS LEGISLATION its deliberations on S. 2658. As a result of those additional hearings we have serious question The beneficial effects on the economy which will result from imple- concerning the capability of many of the older noninterstate struc- mentation of the increases recommended by the committee are amply tures to support vehicles of the dimensions and weights presently, supported by the testimony presented. Larger payload capacity will permitted to operate under existing State legislation. These bridges facilitate more productive, economic, and efficient passenger and many of which are more than a generation old, were designed to serve freight transportation by highway. It will be the responsibility of a community whose transportation needs did not reflect the demands of Federal and State regulatory agencies to insure that savings achieved today's highly developed economy. As a result of the hearings, we by reason of the movement of larger vehicles are passed on to the con- direct the appropriate Federal agencies, in cooperation with State and sumers and work to the advantage of the public in general. It will be local agencies, to determine without delay the capacity of existing the further responsibility of such agencies to insure that the benefits bridges to bear the added weights contemplated by S. 2658 as reported. of improved highway transportation are accorded to all communities This information will assist the States in considering legislation to in the United States, large or small. implement the use of the sizes and weights which would be permitted The most difficult problem inherent in consideration of S. 2658 under the bill as reported. concerned the impact of increased weights and widths on the existing road systems and structures. The testimony presented to the com- VI. ANALYSIS OF THE LEGISLATION mittee made it quite clear that the Interstate System is designed and The bill, as reported, adopts the basic recommendations made by built to accommodate vehicles with weights and dimensions recom- the Department of Transportation and is amply supported by the mended in the bill as reported by the committee. This is not the case data contained in House Document 354, 88th Congress, second with many of our existing primary and secondary roads. It will, session, which was filed with the Congress on August 19, 1964, as therefore, be the responsibility of each of the States to determine the a result of a series of tests conducted for the purpose of determining acceptability of the maximums permitted by S. 2658, as amended, maximum desirable dimensions and weights of vehicles operated on and if acceptable how they will be implemented. The laws of a number the Federal-aid systems. of States relating to this subject and in effect over the past 12 years S. 2658 would permit any State to increase single-axle weights to include weights and dimensions at levels equal to or above those 20,000 pounds, tandem-axle weights to 34,000 pounds, and width of proposed by S. 2658, as amended. In addition, a number of States now vehicles to 102 inches. designate road systems which carry different maximum axle or gross The increase in width would be of benefit in that it would provide loads or both. improved safety and operating conditions. Among the factors to be The Department of Transportation recommended that the limits considered as gains from an increase of 6 inches over the existing set forth in S. 2658, as amended, be applied to all Federal-aid systems. 96-inch width limitation are: In view of the foregoing and the fact that a congressionally established 1. Greater lateral stability for all vehicles. limit could be interpreted as a finding that such weights and dimen- 2. Greater steering and braking stability of vehicles when sions could be accommodated on the other Federal-aid systems, the cornering, or! under severe wind or emergency conditions. committee would continue to restrict the application of the bill to 3. Additional space for spring mountings and frame members the Interstate System. Each State will have to examine the needs of for better spring systems. its own economy, the capacity of its existing road system and the costs 4. Greater space for larger tires and more tire and brake of maintenance which will be entailed in making the decisions relating ventilation. to any increase of the size and weights of vehicles which may operate 5. Greater width for efficient storage of 4- and 8-foot standard within its borders. modular sizes of merchandise. 6 7 6. Greater potential for comfort or more passengers per trip In keeping with the policy established by the original language of in motorbus transportation, as well as improved stability resulting the size and weight limitation contained in the Federal-Aid Highway from increased wheel treads, reduced vibration and shock both Act of 1956, State laws in effect as of January 1, 1968, which permit to cargo and pavement as a result of more efficient suspension greater weights or dimensions than contained in this legislation, system, and lower unit ground pressures resulting from use of would continue in effect. The original "grandfather date" was July 1, larger tires with lower inflation pressures. 1956, and our new date merely reaffirms the validity of State laws which have been controlling motor vehicle sizes and weights for the S. 2658, as amended, would also replace the existing gross weight past 12 years. This provision also confirms the authority of each limit of 73,280 pounds by a formula designed to protect bridges and State to issue so-called special permits which are needed to permit other structures from unreasonable overstresses. movements of loads of unusual weights or widths. Based on the weight formula The following table shows the essential proposals as made by S. 2658 as reported, the administration's recommendation and the general AASHO policy and compares these to the present law: Present law S. 2658, as amended Administration AASHO as included in S. 2658, as amended, the following table indicates the recommendation range of permissible gross loads for vehicles in regular operation: 000.01 Single exte 18,000 lbs 20,000 lbs 20,000 lbs 20,000 lbs. Tandem exte 32,000 lbs 34,000 lbs 34,000 lbs. 34,000 lbs. Distance in feet between the Maximum load in pounds carried on any group of 2 or more consecutive axles LN Gross weight LN extremes of any group of 2 73,280 lbs W=500 LN W=500 W=500 or more consecutive axles 2 axles 3 axles 4 axles 5 axles 6 axles 7 axles 8 axles 9 axles +12N+36 +12N+36 4 34,000 Width 96 ins 102 ins 102 ins 102 ins. 5 34,000 Coverage Interstate System Interstate System All Federal-aid systems. All systems. 6 34,000 Grandfather clause July 1, 1956 Jan. 1, 1968. Jan. 1, 1968 7 34,000 Penalty Loss of apportion- Same Same 8 34,000 42,000 ment. 9 39,000 42,500 10 40,000 43,500 11 44,000 1 Presently the laws of some of the States do permit higher maximum weights and dimensions than were provided for 12 45,000 50,000 in the 1956 act. Such greater limits were in effect on July 1, 1956: 13 45,500 50,500 Single axle: 26 States allow more than 18,000 pounds; 15 of these States allow 20,000 pounds or more. 14 46,500 51,500 Tandem axle: 24 States allow more than 32,000 pounds; 8 of these States allow 36,000 pounds or more. 15 47,000 52,000 Width: 3 States allow widths of 102 inches or more. 16 48,000 52,500 58,000 2 Based on the 1964 BPR report (H. Doc. No. 354, 89th Cong. 2d sess.). 17 48,500 53,500 58,500 8 Where W=overall gross weight on any group of two or more consecutive axles to the nearest 500 pounds, L=distance 18 49,500 54,000 59,000 in feet between the extreme of any group of two or more consecutive axles, and N=number of axles in the group under 19 50,000 54,500 60,000 consideration. 20 51,000 55,500 60,500 66,000 4 Where W represents overall gross weight on any group of two or more consecutive axles to the nearest 500 pounds, 21 51,500 56,000 61,000 66,500 L represents distance between centers of the extreme axles of any group of two or more consecutive axies to the nearest 22 52,500 56,500 61,500 67,000 foot, and N represents number of axles in the group under consideration. 23 53,000 57,500 62,500 68,000 5 Where W=maximum weight in pounds carried on any group of two or more axles, including any and all weight tolerances, 24 54,000 58,000 63,000 68,500 74,000 =distance in feet between the extremes of any group of two or more consecutive axles, and N=number of axles in the 25 54,500 58,500 64,500 69,000 74,500 group under consideration. 26 55,500 59,500 65,000 69,500 75,000 6 Interstate System plus other roads with 12-ft. lanes. 27 56,000 60,000 65,000 70,000 75,500 28 57,000 60,500 65,500 71,500 76,500 82,000 29 57,500 61,500 66,000 71,500 77,000 82,500 30 58,500 62,000 66,500 72,000 77,500 83,000 31 59,000 62,500 67,500 72,500 78,000 83,500 32 60,000 63,500 68,000 73,000 78,500 84,500 90,000 33 64,000 68,500 74,000 79,000 85,000 90.500 34 64,500 69,000 74,500 80,000 85,500 91,000 35 65,500 70,000 75,000 80,500 86,000 91,500 36 66,000 70,500 75,500 81,000 86,500 92,000 37 66,500 71,000 76,000 81,500 87,000 93,000 38 67,500 72,000 77,000 82,000 87,500 93,500 39 68,000 72,500 77,500 82,500 88,500 94,000 40 68,500 73,000 78,000 83,500 89,000 94,500 41 69,500 73,500 78,500 84,000 89,500 95,000 42 70,000 74,000 79,000 84,500 90,000 95,500 43 70,500 75,000 80,000 85,000 90,500 96,000 44 71,500 75,500 80,500 85,500 91,000 96,500 45 72,000 76,000 81,000 86,000 91,500 97,500 46 72,500 76,500 81,500 87,000 92,500 98,000 47 73,500 77,500 82,000 87,500 93,000 98,500 48 74,000 78,000 83,000 88,000 93,500 99,000 49 74,500 78,500 83,500 88,500 94,000 99,500 50 75,500 79,000 84,000 89,000 94,500 100,000 51 76,000 80,000 84,500 89,500 95,000 100,500 52 76,500 80,500 85,000 90,500 95,500 101,000 53 77,500 81,000 86,000 91,000 96,500 102,000 54 78,000 81,500 86,500 91,500 97,000 102,500 55 78,500 82,500 87,500 92,000 97,500 103,000 56 79,500 83,000 87,500 92,500 98,000 103,500 57 80,000 83,500 88,000 93,000 98,500 104,000 58 84,000 89,000 94,000 99,000 104,500 59 85,000 89,500 94,500 99,500 105,000 S. Rept. 1026, 90-2-2 60 85,500 90,000 95,000 100,500 105,500 8 9 The following tables show the present weight laws in effect in the TANDEM-AXLE LIMIT ON INTERSTATE SYSTEM various States: [In pounds] SINGLE-AXLE LIMIT ON INTERSTATE SYSTEM [In pounds] Present State limits Statutory Tolerance Legal limit limit Present State limits Statutory Tolerance Legal limit limit Alabama 36,000 3,600 39,600 Alaska 34,000 34,000 Arizona 32,000 32,000 Alabama 18,000 1,800 19,800 Arkansas 32,000 32,000 Alaska 20,000 20,000 California 32,000 32,000 Arizona 18,000 18,000 Colorado 36,000 36,000 Arkansas 18,000 18,000 Connecticut 36,000 720 36,720 California 18,000 18,000 Delaware 36,000 36,000 Colorado 18,000 18,000 District of Columbia 38,000 38,000 Connecticut 22,400 448 22,848 Florida 40,000 4,000 44,000 Delaware 20,000 20,000 Georgia 36,000 4,680 4, 40,680 District of Columbia 22,000 22,000 Hawaii 32,000 32,000 Florida 20,000 2,000 22,000 Idaho 32,000 32,000 Georgia 18,000 2,340 20,340 Illinois 32,000 32,000 Hawaii 24,000 24,000 Indiana 32,000 32,000 Idaho 18,000 18,000 Iowa 32,000 960 32,960 Illinois 18,000 18,000 Kansas 32,000 32,000 Indiana 18,000 18,000 Kentucky 32,000 1,600 33,600 Iowa 18,000 540 18,540 Louisiana 32,000 32,000 Kansas 18,000 18,000 Maine 32,000 32,000 Kentucky 18,000 900 18,900 Maryland 40,000 40,000 Louisiana 18,000 18,000 Massachusetts 36,000 36,000 Maine 22,000 22,000 Michigan 26,000 26,000 Maryland 22,400 22,400 Minnesota 32,000 32,000 Massachusetts 22,400 22,400 Mississippi 32,000 32,000 Michigan 18,000 18,000 Missouri 32,000 32,000 Minnesota 18,000 18,000 Montana 32,000 32,000 Mississippi 18,000 18,000 Nebraska 32,000 1,600 33,600 Missouri 18,000 18,000 Nevada 32,000 32,000 Montana 18,000 18,000 New Hampshire 36,000 36,000 Nebraska 18,000 900 18,900 New Jersey 32,000 1,600 33,600 Nevada 18,000 18,000 New Mexico 34,320 34,320 New Hampshire 22,400 22,400 New York 36,000 36,000 New Jersey 22,400 1,120 23,520 North Carolina 36,000 2,000 38,000 New Mexico 21,600 21,600 North Dakota 32,000 32,000 New York 22,400 22,400 Ohio 32,000 32,000 North Carolina 18,000 1,000 19,000 Oklahoma 32,000 32,000 North Dakota 18,000 18,000 Oregon 32,000 32,000 Ohio 19,000 19,000 Pennsylvania 36,000 1,080 37,080 Oklahoma 18,000 18,000 Rhode Island 36,000 36,000 Oregon 18,000 18,000 South Carolina 32,000 32,000 Pennsylvania 22,400 672 23,072 South Dakota 32,000 32,000 Rhode Island 22,400 22,400 Tennessee 32,000 32,000 South Carolina 20,000 20,000 Texas 32,000 32,000 South Dakota 18,000 18,000 Utah 33,000 33,000 Tennessee 18,000 18,000 Vermont 36,000 36,000 Texas 18,000 18,000 Virginia 32,000 32,000 Utah 18,000 18,000 Washington 32,000 32,000 Vermont 22,400 22,400 West Virginia 32,000 1,600 33,600 Virginia 18,000 18,000 Wisconsin 32,000 32,000 Washington 18,000 18,000 Wyoming 36,000 36,000 West Virginia 18,000 900 18,900 Wisconsin 19,500 19,500 Wyoming 18,000 18,000 Number of States at- 32,000 lbs 27 32,001 to 36,000 lbs 16 Number of States at- 36,001 lbs. and over 8 18,000 lbs 25 18,001 to 20,000 libe 11 Total 51 20,001 lbs and over 15 1 On designated highways 1 pair of tandems permitted 32,000 lbs. Total 51 10 11 HIGHEST PRACTICAL WEIGHT BY STATES Department suggests additions to S. 2658 to insure the safety of (In pounds] large trucks, also recommended in the report, and further recom- mends extension of the maximum limitations to the entire Federal- Highest Highest State practical State practical aid system. gross weight gross weight We wish to emphasize the close relationship between S. 2658 and the administration's proposed highway user charges for heavy vehi- Alabama 73,280 Montana 76,800 Alaska 189,000 Nebraska 73,280 cles. Since passage of S. 2658, as introduced or with the amendments Arizona 76,800 Nevada 76,800 Arkansas proposed by the Department of Transportation, would result in 73,280 New Hampshire 73,280 California 76,800 New Jersey 73,280 higher costs and reduced life of the highway system, we concur with Colorado 76,000 New Mexico 86,400 Connecticut 73,000 New York 71,000 the view of the Department that increased user charges are an essen- Delaware 73,280 North Carolina 73,280 District of Columbia tial complement to this legislation. 70,000 North Dakota 73,280 Florida 73,271 Ohio 78,000 The Bureau of the Budget would favor enactment of S. 2658 if Georgia 73,280 Oklahoma 73,280 Hawaii 73,280 Oregon 76,000 amended as recommended in the report of the Department of Idaho 76,800 Pennsylvania 73,279 Illinois Transportation. 73,280 Rhode Island 73,280 Indiana 73,000 South Carolina 73,280 Sincerely, Iowa 73,280 South Dakota 73,280 Kansas 73,280 Tennessee 73,280 WILFRED H. ROMMEL, Kentucky 73,280 Texas 72,000 Assistant Director for Legislative Reference. Louisiana 74,000 Utah 79,900 Maine 73,280 Vermont 73,280 Maryland 73,280 Virginia 70,000 Massachusetts 73,000 Washington 76,000 Michigan 196,000 West Virginia 73,280 Minnesota 73,280 Wisconsin 73,000 OFFICE OF THE SECRETARY OF TRANSPORTATION, Mississippi 73,280 Wyoming 73,950 Missouri 73,280 Washington, D.C., March 13, 1968. Hon. JENNINGS RANDOLPH, 1 Maximum gross weight for 6-axle twin trailer combination; higher maximum gross weight possible with increase in Chairman, Committee on Public Works, number of axles. U.S. Senate, Washington, D.C. VII. AGENCY VIEWS DEAR MR. CHAIRMAN: This is in reply to your request for the views of this Department concerning S. 2658, a bill to amend section 127 of EXECUTIVE OFFICE OF THE PRESIDENT, title 23 of the United States Code relating to vehicle weight and BUREAU OF THE BUDGET, width limitations on the Interstate System, in order to make certain Washington, D.C., March 12, 1968. increases in such limitations. Hon. JENNINGS RANDOLPH, This proposal would increase the vehicle weight and width which Chairman, Committee on Public Works, a State may lawfully permit on the Interstate System without loss of U.S. Senate, Washington, D.C. its apportionment of Interstate funds. The increase in weights would DEAR MR. CHAIRMAN: This is in response to your request for be from 18,000 to 20,000 pounds on a single axle, 32,000 to 36,000 comments on S. 2658, a bill to amend section 127 of title 23 of the pounds on a tandem axle, and from an overall gross weight of 73,280 United States Code relating to vehicle weight and width limitations pounds to one produced by the application of the formula: on the Interstate System, in order to make certain increases in such limitations. This bill would increase the vehicle weights and widths which a W=500 (N-1+12N+40) State may lawfully permit on the Interstate System without loss of where, its apportionment of interstate funds. The increase in weights would W=overall gross weight of the vehicle plus load. be from 18,000 to 20,000 pounds on a single axle, 32,000 to 36,000 L=overall wheelbase or the distance in feet between the centers pounds on a tandem axle, and from an overall gross weight limit of of the first and last axles of the vehicle or vehicle combina- 73,280 pounds to one produced by the application of a gross load tion. formula (providing a means of approximating the maximum desirable N=number of axles. loads to be carried on highway bridges). The increase in width would be from 96 to 102 inches plus additional width necessary for safety The increase in width would be from 96 to 102 inches plus additional devices and tire bulge. width necessary for safety devices and tire bulge due to loads. As indicated by the Department of Transportation in its report on The weights and width presently contained in section 127 are S. 2658, an increase in permissive vehicle size and dimensions sug- based principally on the maximums prescribed by the States when gested in the 1964 report on "Maximum Desirable Dimensions and this provision was enacted 12 years ago. Sufficient scientific informa- Weights of Vehicles Operated on the Federal-aid System," would tion was not available at that time to determine the relationship of bring with it gains in the economical use of highway transport. The the weights and width of vehicles to the physical characteristics of the highway. 12 13 In the same act that contained section 127, the Congress recognized to limit the maximum height of vehicles to 13 feet, 6 inches, also as the need for additional information in this regard. Section 108(k) of the recommended in the 1964 report (sec. 127(a)(1)). Federal-Aid Highway Act of 1956, as amended (70 Stat. 374, 72 To make these limitations effective, we concur with the S. 2658 Stat. 983), directed the Secretary of Commerce to expedite procedures provision which, like the present 23 U.S.C. 127, requires the cutoff to determine future maximum desirable dimensions and weights for of future Federal-aid highway funds to noncomplying States (secs. vehicles operating on the Federal-aid highway systems and to report 127 (a) and (b)). his conclusions to the Congress. This report was made and trans- Our recommendations regarding weights and dimensions does depart mitted to the Congress on August 18, 1964, and has been published from the 1964 report in a few respects. That report recommends set- as House Document 354, 88th Congress. ting certain Federal limits on the overall length of vehicles and vehicle With certain exceptions explained below, the Department of Trans- combinations. S. 2658 does not do so, and we agree with that approach portation believes that the findings, conclusions, and recommendations at this time. While there is a regional trend developing on this subject, of that 1964 report remain applicable today. The report recognizes presently there is no nationwide consensus regarding appropriate ve- that an increase in permissive vehicle weight and dimension would hicle lengths. The Department is presently conducting studies in this bring with it gains in the economical use of highway transport. The area. Until the studies have been completed and sufficient objective report additionally points out, however, the adverse effects which data reviewed, we think this question is best left to the individual flow from such an increase, not only on the serviceability and life of States to decide in the light of their particular geographic and traffic pavements and structures, but also with regard to highway traffic and needs and problems. safety considerations. With this in mind, we have reviewed the At this time we also think it appropriate to extend the limitations increases in allowable vehicle weight and width proposed in S. 2658. in maximum vehicle weight and dimension to the entire Federal-aid In the interest of achieving what we believe to be a fair balance system, and not merely impose them on the Interstate System alone between the benefits and the burdens from such increases, we offer (sec. 127(a)). One of the goals of our highway program is to achieve the following suggestions regarding the proposed bill which, with the uniformity in permissible vehicle weight and dimension across the exception noted below, follow the lines of the 1964 report. We have Nation. This has obvious advantages to the transport industry. How- also enclosed a draft bill for your consideration which would incor- ever, we should avoid the incongruous circumstances-now extant in porate our suggestions; the parenthetical references in this report are certain States-where road systems designed to lower standards are to that draft. permitted to carry heavier vehicles than the Interstate System. This First, we have no objection to increasing the single axle limit to not only jeopardizes the extensive Federal investment in the primary 20,000 pounds as proposed by S. 2658, but the permissible load on a and secondary systems, but also encourages other States to follow tandem axle should be raised to 34,000 pounds, rather than the suit with a resultant destruction in uniform standards. Extending the 36,000 pounds presently specified in S. 2658. Similarly, we concur in maximum weight and dimension requirements to all systems would the proposal to increase the permissible width of vehicles to 102 inches. end this problem while, at the same time, retain a State's entitlement This limit, however, should include tolerances but exclude safety to set lower standards on the primary and secondary systems in the devices of types approved by the Secretary (sec. 127(a)). interests of safety and the preservation of roads and structures. We believe, however, that the formula for computing the maximum Finally, the 1964 report recommends that the allowance of vehicles gross weight of vehicles should be along the lines recommended in the of increased weight and dimension on the highways be coupled with 1964 report, which would permit a somewhat lesser rise over the pres- the establishment of appropriate safety standards. Consequently, ent limitations in 23 U.S.C. 127 than is proposed by S. 2658. The we recommend that S. 2658 be amended to add authority for the formula we suggest would read as follows: Secretary of Transportation to develop and prescribe performance standards applicable to the larger vehicles and vehicle combinations (sec. These standards would be issued after consultation with the States and such other public and private organizations as the Secretary deems appropriate, and would prescribe: where W represents the overall gross weight on any group of two (a) Minimum performance standards specifying a ratio of or more consecutive axles to the nearest 500 pounds, L represents gross weight of a vehicle or vehicle combination to the net engine the distance between centers of the extreme axles of any group of horsepower available for movement of the vehicle or vehicle two or more consecutive axles to the nearest foot, and N repre- combination; sents the number of axles in the group under consideration (b) Minimum performance standards for the braking system (sec. 127 of a vehicle or vehicle combination; and We would include a grandfather clause, permitting States which (c) Minimum performance standards for the strength and already authorize vehicles on the systems above these limits to con- operation of the linkage and coupling systems between compo- nents of a vehicle combination. tinue to be able to do so (sec. 127(a)(2)). An additional express excep- These standards would be required to be reasonable, practicable tion should be added, however, to permit the use of certain transit type buses in urban areas (sec. 127(b)). We also think it appropriate and in terms of objective criteria. 14 15 The Secretary would be required to prescribe such standards within 2 years following the enactment of this legislation (sec. not in excess of that derived by application of the follow- 127(c)(1)). Thereafter, following a period specified in our suggested ing formula: amendment, which the Secretary could enlarge for good cause (sec. LN 127(c)(2)), a State which authorized vehicles not meeting those W=500 standards to use the Federal-aid systems within its boundaries would have its apportionment of Federal-aid highway funds reduced 10 per- cent for any fiscal year in which it permitted such below-standard where W represents overall gross weight on any group of operations (sec. 127(c)(3)). However, no State's apportionment would two or more consecutive axles to the nearest 500 pounds; be reduced under this provision in the same fiscal year in which a L represents distance between centers of the extreme reduction under section 402(e) of title 23 (relating to other aspects axles of any group of two or more consecutive axles to the of the highway safety program) had been applied to it. The Secretary nearest foot; and N represents number of axles in the would also have authority to suspend the application of this provision group under consideration; or to a State for such period as be deemed necessary, as well as to review "(2) the corresponding weights and dimensions per- and revise the standards as technology end his knowledge in this area mitted for vehicle or vehicle combinations using the increased. We also suggest the inclusion of a savings clause to insure public highways of such State under laws or regulations that nothing in this act would detract from any authority or duties established by appropriate State authority in effect on required or imposed on the Secretary or the Federal Highway Adminis- January 1, 1968, whichever is the greater. trator by any other act (sec. 127(c)(4)). "(b) Any amount which is withheld from apportionment The Department of Transportation would favor the enactment to any State pursuant to subsection (a) of this section shall of S. 2658 subject to the comments and recommendations outlined lapse. Subsection (a) of this section does not deny apportion- above. ment to any State allowing the operation within such State The Bureau of the Budget advises that from the standpoint of the of vehicles or vehicle combinations that could be lawfully administration's program there is no objection to the submission of operated within such State on January 1, 1968, or the opera- this report for the consideration of the Committee. tion within an urban area as defined in section 101(a) of this Sincerely yours, title of any transit-type bus meeting the requirements of JOHN L. SWEENEY, section 4483(c) of title 26, United States Code, that could be Assistant Secretary for Public Affairs. lawfully operated within such area while engaged in scheduled bus service ou January 1, 1968. A BILL To provide for more uniform standards for the weights and "(c)(1) In the interest of safety and the efficient utiliza- dimensions and the safety and performance of vehicles using the tion of the Federal-aid highway systems the Secretary, after Federal-aid systems, and for other purposes consultation with the States and such other public and Be it enacted by the Senate and House of Representatives of the private organizations as he deems appropriate and no later United States of America in Congress assembled, That: than two years following the enactment of this Act, shall Section 127, of title 23 of the United States Code is hereby develop and publish in the Federal Register reasonable amended to read as follows: and practicable performance standards providing objective "Sec. 127. VEHICLE WEIGHT AND DIMENSION LIMITATIONS, criteria applicable to vehicles and vehicle combinations SAFETY AND PERFORMANCE STANDARDS.- having more than two axles or an overall gross weight in "(a) No funds authorized to be appropriated for any fiscal excess of 14,000 pounds, which shall prescribe: year for expenditure upon the Federal-aid systems shall be "(A) minimum performance standards specifying a apportioned to any State within the boundaries of which any ratio of gross weight of a vehicle or vehicle combination Federal-aid system may lawfully be used by a vehicle or to the net engine horsepower available for movement of vehicle combination with: the vehicle or vehicle combination; "(1) weight in excess of twenty thousand pounds "(B) minimum performance standards for the braking including tolerances carried on any one axle, or with system of a vehicle or vehicle combination; and a tandem-axle weight in excess of thirty-four thousand "(C) minimum performance standards for the strength pounds including tolerances, or with an overall width in and operation of the linkage and coupling systems excess of one hundred and two inches excluding tire bulge between the components of a vehicle combination. due to loads and safety devices approved by the Secre- "(2) The Secretary shall determine the effective date of tary, or with an overall height in excess of thirteen feet, six inches, or with an overall gross weight including any standard prescribed under this subsection, which date shall be not less than one nor more than two years after the tolerances on a group of two or more consecutive axles beginning of the fiscal year next following its publication in the Federal Register unless the Secretary finds, for good cause shown, that a later date is in the public interest and publishes his reasons for such finding. The Secretary may 16 17 revise, amend or revoke any standard prescribed under this SEC. 3. The analysis of chapter 1 of title 23 of the United subsection by notice published in the Federal Register, but States Code is amended by revising the caption of section the effective date of any revision or amendment shall not 127 to read as follows: be less than one nor more than two years after the beginning of the fiscal year next following its publication in the Federal "Vehicle weight and dimension limitations, safety and perform- ance standards" Register, unless the Secretary finds, for good cause shown, that a later date is in the public interest and publishes his VIII. COMMITTEE VIEWS reasons for such finding. "(3) After the effective date of any standard prescribed The Committee on Public Works recommends the enactment of under this subsection, 10 per centum of funds authorized to S. 2658, as amended, in the interest of promoting the most productive, be appropriated for any fiscal year for expenditure upon the economic and efficient use of our highway system by passenger and Federal-aid systems shall be withheld from apportionment to freight carriers. The committee believes that the benefits to be derived any State within the boundaries of which any segment of any from the increased sizes and weights of motor vehicles which would system may lawfully be used by vehicles in violation of that be permitted by the legislation would offset the increased maintenance standard. No withholding from the amounts which would and construction costs for our highway system. This legislation will otherwise be apportioned to such State shall be made establish the proper maximum dimensions and weights for the long- pursuant to the preceding sentence where a reduction in term use of the Interstate System. The committee further believes that apportionment under section 402(c) of this title is applied to highway safety will not be jeopardized as a result of the proposed that State for the same fiscal year. Where he determines it to maximum allowable sizes and weights. It further emphasizes that the be in the public interest the Secretary may suspend, for such ultimate decisions related to vehicle dimensions and weights will be periods as he deems necessary, the application of this sub- made by the States individually after consideration by the State section to any State. Any amount which is withheld from legislatures of all the relevant factors. Since the legislation establishes apportionment to any State pursuant to this subsection shall a maximum level of use consistent with protection of the Federal lapse. investment in the National System of Interstate and Defense High- "(4) Nothing in this section shall diminish any authority ways, and no changes can be made in existing highway operations conferred upon the Secretary or the Federal Highway without the affirmative action of the States, the committee recom- Administrator pursuant to any other act. mends the adoption of S. 2658 as amended. SEC. 2. Section of title 23, United States Code, is hereby amended by adding at the end thereof the following: CHANGES IN EXISTING Law "The term 'single axle' means an assembly of two or more wheels, whose centers are in one transverse vertical In compliance with subsection (4) of the rule XXIX of the Standing plane or may be included between two parallel trans- Rules of the Senate, changes in existing law made by the bill as re- verse vertical planes forty inches apart extending across ported are shown as follows (existing law proposed to be omitted is the full width of the vehicle. enclosed in black brackets, new matter is printed in italic, existing The term 'tandem+axle' means any two or more con- law in which no change is proposed is shown in roman): secutive axles whose centers are more than forty inches but not more than ninety-six inches apart and are TITLE 23, UNITED STATES CODE individually attached to and/or articulated from a common attachment to the vehicle including a con- Chapter 1-FEDERAL-AID HIGHWAYS necting mechanism designed to equalize the load be- * * * tween axles. "The term 'overall gross weight' means the weight of § 127. Vehicle weight and width limitations-Interstate System. a vehicle or vehicle combination without load plus the No funds authorized to be appropriated for any fiscal year under weight of any load thereon. section 108(b) of the Federal-Aid Highway Act of 1956 shall be The term 'vehicle' means a mechanical device in- apportioned to any State within the boundaries of which the Inter- tended primarily for highway transportation of any state System may lawfully be used by vehicles or combinations thereof person or property therein or upon, or by which such with weight in excess of [eighteen] twenty thousand pounds including device may be drawn upon a highway, except devices tolerances carried on any one axle, or with a tandem-axle weight in ex- moved by human power or used exclusively upon sta- cess of [thirty-two] thirty-four thousand pounds including tolerances, tionary rails or tracks. [or with an overall gross weight in excess of seventy-three thousand The term vehicle combination' means a truck- two hundred and eighty pounds,] or with a width in excess of [ninety- tractor and semitrailer either with or without a trailer, six inches,] one hundred and two inches plus additional width necessary or a truck with one or more trailers.' for safety devices and tire bulge due to loads, or with an overall gross 18 weight including tolerances on a group of two or more consecutive axles in excess of that produced by application of the following formula: W=500 where W=overall gross weight on any group of two or more consecutive axles to the nearest 500 pounds, L=distance in feet between the extreme of any group of two or more consecutive axles, and N=number of axles in the group under consideration; or the corresponding maximum weights or maximum widths permitted for vehicles using the public highways of such State under laws or regulations established by ap- propriate State authority in effect on [July 1, 1956,] January 1, 1968, whichever is the greater. Any amount which is withheld from appor- tionment to any State pursuant to the foregoing provisions shall lapse. This section shall not be construed to deny apportionment to any State allowing the operation within such State of any vehicles or combinations thereof that could be lawfully operated within such State on [July 1, 1956.] January 1, 1968. [With respect to the State of Hawaii, laws or regulations in effect on February 1, 1960, shall be applicable for the purposes of this section in lieu of those in effect on July 1, 1956.] lo ai al RB to ai be bus trigisw basitoilame ed Ilada to [mostrigie] -X9 to to Leadoni 90TH CONGRESS HOUSE OF REPRESENTATIVES REPORT 2d Session No. 1636 VEHICLE WEIGHT AND WIDTH LIMITATIONS- INTERSTATE SYSTEM JULY 3, 1968.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. FALLON, from the Committee on Public Works, submitted the following REPORT together with MINORITY VIEWS [To accompany S. 2658] The Committee on Public Works, to whom was referred the bill (S. 2658) to amend section 127 of title 23 of the United States Code re- lating to vehicle weight and width limitations on the Interstate Sys- tem, in order to make certain increases in such limitations, having con- sidered the same, report favorably thereon with amendments and recommend that the bill as amended do pass. The amendments are as follows: Page 2, line 19, strike out "public highways of" and insert in lieu thereof "Interstate System within". Page 3, line 2, after "operated" insert "upon the Interstate System". COMMITTEE AMENDMENTS The 1956 Highway Act set forth existing maximum sizes and weights of vehicles that could be operated on the Interstate System. It also provided that if the laws of any State at that time permitted the operation of larger vehicles, then those State laws could remain in effect as to the Interstate System. S. 2658 as it was referred to the committee amends section 127, title 23, to revise the permissible sizes and weights of vehicles operated on the Interstate System as is fully explained below. In addition, the Senate bill would have validated, for the purposes of section 127, title 23, any State law permitting the operation on any public highway of FORD 98-006 GERALD LIBRARY 2 3 vehicles exceeding the new maximum dimensions if that State law was enacted before January 1, 1968. Per single axle, 18,000 pounds; The committee believes that the State laws in effect in 1956, which Per tandem axle, 32,000 pounds; were protected by the 1956 Highway Act, should continue to be pro- Overall gross weight, 73,280 pounds; tected, but that this protection should not be extended to State law Width, 96 inches; enacted after 1956 insofar as the Interstate System is concerned. or The committee amendments in effect, therefore, continue the grand- the corresponding weights and dimensions permitted under State father clause contained in the 1956 Highway Act, and eliminate the law or regulation in effect on July 1, 1956, whichever is greater. proposed grandfather clause, which was contained in S. 2658 as it Any State which by law permits use of the Interstate System by 1956. was referred to the committee, with respect to State laws enacted after vehicles with maximum weight and width greater than those estab- lished under the provisions of section 127 will continue to be penalized PURPOSE OF THE LEGISLATION by the loss of apportioned funds for any fiscal year during which the violation occurs. S. 2658 as reported with amendments will facilitate a more efficient The basic standards adopted by the Congress were those which had and economic use of the Interstate System and insure that the vehicles been adopted by the American Association of State Highway Officials using that system will not unreasonably or unnecessarily impair its during the period 1944-46. serviceability or durability. The limits established by S. 2658 are As a companion measure to the enactment of the limitations on intended to set the maximums which most closely strike the balance the sizes and weights of motor vehicles, the Congress in the 1956 act between productive use and reasonable life of pavement, subsurface, also directed the Secretary of Commerce to take all action possible and structures. Of course, weights and widths of vehicles are only to expedite the conduct of a series of tests, later known as the Illinois one factor to be considered in the durability of highway life. Proper road tests, for the purpose of determining the maximum desirable design, construction and maintenance, and the effects of climate are dimensions and weights for vehicles operating on the Federal-aid also extremely important. highway systems, including the Interstate System. Recommendations The proposed legislation continues the congressional policy of pro- on such standards were to be presented to the Congress not later than viding limits regarding maximum permissible use of weights and March 1, 1959. dimensions on the Interstate System in order to adequately protect On August 18, 1964, the Secretary of Commerce transmitted to the the Federal investment. This determination is based on the condition Congress the requested study and recommendations (H. Doc. 354, that such maximums will be properly implemented and enforced by 88th Cong., second sess.): the States, which continue to bear the ultimate responsibility for H.R. 14474 was introduced by Mr. Kluczynski, of Illinois, and sev- permitting vehicles to operate within these weights and width ranges. eral other Members. S. 2658, the bill here, was passed by the Senate The committee most emphatically reaffirms that the responsibility for and referred to the Public Works Committee before the committee legal maximum allowable limits. and control of sizes and weights of scheduled its hearings on this subject. Thus the hearings covered vehicles operating on the Interstate System, as well as on all the other both the original bill, H.R. 14474, and S. 2658. road systems of the United States, rests with the individual States. A substantial amount of testimony was received from both propo- The legislation is not intended as a Federal determination that such nents and opponents, and lengthy statements were submitted for the weights should be permitted, nor does it imply that roads other than record. those on the Interstate System are capable of carrying such loads. It Among the major issues presented to the committee were those is a statement of policy that permitting such weights will not do dealing with highway safety, economic impact, effect of increases violence to the Federal interest in the development of a nationwide on road systems and structures and the contributions of the various network of major traffic service highways. user beneficiaries. Evidence presented to the committee with regard to highway safety BACKGROUND OF THE LEGISLATION did not demonstrate a meaningful relationship between the sizes and Until July 1, 1956, the regulation of motor vehicle weights and weights under consideration and the incidence of traffic accidents. dimensions was a matter solely within the province of the individual States. The Federal-Aid Highway Act of 1956 established maximum EFFECT OF THIS LEGISLATION permissible weights and widths for vehicles operating on the Inter- The beneficial effects on the economy which will result from imple- state System. Though it constituted a departure from the policy of the mentation of the increases recommended by the committee are amply past, this action was taken by the Congress in order to protect the supported by the testimony presented. Larger payload capacity will Federal investment in interstate highways and to insure the safety of facilitate more productive, economic, and efficient passenger and the traveling public. Preexisting Federal-aid statutes were silent on the subject. freight transportation by highways. It will be the responsibility of Federal and State regulatory agencies to insure that savings achieved The language of the 1956 act, now section 127, title 23, United States Code, "Highways," provides that the maximum allowable by reason of the movement of larger vehicles are passed on to the con- sumers and work to the advantage of the public in general. It will be weight and dimensions for vehicles on the Interstate System are: the further responsibility of such agencies to insure that the benefits 4 5 in the United States, large or small. of improved highway transportation are accorded to all communities 6. Greater potential for comfort or more passengers per trip The most difficult problem inherent in consideration of S. 2658 in motorbus transportation, as well as improved stability resulting concerned the impact of increased weights and widths on the existing from increased wheel treads, reduced vibration and shock both road systems and structures. The testimony presented to the com- to cargo and pavement as a result of more efficient suspension built to accommodate vehicles with weights and dimensions recom- mittee made it quite clear that the Interstate System is designed and system, and lower unit ground pressures resulting from use of larger tires with lower inflation pressures. mended in the bill as reported by the committee. This is not the case S. 2658, as amended, would also replace the existing gross weight with many of our existing primary and secondary roads, It will, limit of 73,280 pounds by a formula designed to protect bridges and therefore, be the responsibility of each of the States to determine the other structures from unreasonable overstresses. acceptability of the maximums permitted by S. 2658, as amended, Based on the weight formula and if acceptable how they will be implemented. The laws of a number LN of States relating to this subject and in effect over the past 12 include weights and dimensions at levels equal to or above years those proposed by S. 2658, as amended. In addition, a number of States now as included in S. 2658, as amended, the following table indicates the loads or both. designate road systems which carry different maximum axle or gross range of permissible gross loads for vehicles in regular operation: The Department of Transportation recommended that the limits Distance in feet between the Maximum load in pounds carried on any group of 2 or more consecutive axles set forth in S. 2658, as amended, be applied to all Federal-aid systems. extremes of any group of 2 or more consecutive axles 2 exles 3 axles 4 axles 5 axles 6 axles 7 axles 8 axles 9 axles In view of the foregoing and the fact that a congressionally established limit could be interpreted as a finding that such weights and dimen- 4 34,000 sions could be accommodated on the other Federal-aid systems, the 5 34,000 6 34,000 committee would continue to restrict the application of the bill to 7 34,000 8 34,000 42,000 the Interstate System. Each State will have to examine the needs of 9 39,000 42,500 its own economy, the capacity of its existing road system and the costs 10 40,000 43,500 11 44,000 of maintenance which will be entailed in making the decisions relating 12 45,000 50,000 13 45,500 50,500 within its borders. to any increase of the size and weights of vehicles which may operate 14 46,500 51,500 15 47,000 52,000 16 48,000 52,500 58,000 17 48,500 53,500 58,500 18 49,500 54,000 59,000 ANALYSIS OF THE LEGISLATION 19 50,000 54,500 60,000 20 51,000 55,500 60,500 66,000 21 51,500 56,000 61,000 66,500 The bill, as reported, adopts the basic recommendations made by 22 52,500 56,500 61,500 67,000 the Department of Transportation and is amply supported by the 23 53,000 57,500 62,500 68,000 24 54,000 58,000 63,000 68,500 74,000 data contained in House Document 354, 88th Congress, second 25 54,500 58,500 64,500 69,000 74,500 26 55,500 59,500 65,000 69,500 75,000 session, which was filed with the Congress on August 19, 1964, as 27 56,000 60,000 65,000 70,000 75,500 a result of a series of tests conducted for the purpose of determining 28 57,000 60,500 65,500 71,500 76,500 82,000 29 57,500 61,500 66,000 71,500 77,000 82,500 maximum desirable dimensions and weights of vehicles operated on 30 58,500 62,000 66,500 72,000 77,500 83,000 31 59,000 the Federal-aid systems. 62,500 67,500 72,500 78,000 83,500 32 60,000 63,500 68,000 73,000 78,500 84,500 90,000 S. 2658 would permit any State to increase single-axle weights to 33 64,000 68,500 74,000 79,000 85,000 90,500 34 64,500 69,000 74,500 80,000 85,500 91,000 20,000 pounds, tandem-axle weights to 34,000 pounds, and width of 35 65,500 70,000 75,000 80,500 86,000 91,500 36 vehicles to 102 inches. 66,000 70,500 75,500 81,000 86,500 92,000 37 66,500 71,000 76,000 81,500 87,000 93,000 The increase in width would be of benefit in that it would provide 38 67,500 72,000 77,000 82,000 87,500 93,500 39 68,000 72,500 77,500 82,500 88,500 94,000 improved safety and operating conditions. Among the factors to be 40 68,500 73,000 78,000 83,500 89,000 94,500 41 69,500 73,500 78,500 84,000 89,500 95,000 considered as gains from an increase of 6 inches over the existing 42 70,000 74,000 79,000 84,500 90,000 95,500 96-inch width limitation are: 43 70,500 75,000 80,000 85,000 90,500 96,000 44 71,500 75,500 80,500 85,500 91,000 96,500 1. Greater lateral stability for all vehicles, 45 72,000 76,000 81,000 86,000 91,500 97,500 46 72,500 76,500 81,500 87,000 92,500 98,000 2. Greater steering and braking stability of vehicles when 47 73,500 77,500 82,000 87,500 93,000 98,500 48 cornering, or under severe wind or emergency conditions. 74,000 78,000 83,000 88,000 93,500 99,000 49 74,500 78,500 83,500 88,500 94,000 99,500 3. Additional space for spring mountings and frame members 50 75,500 79,000 84,000 89,000 94,500 100,000 51 76,000 80,000 84,500 89,500 95,000 100,500 for better spring systems. 52 76,500 80,500 85,000 90,500 95,500 101,000 53 77,500 81,000 86,000 91,000 96,500 102,000 tilation. 4. Greater space for larger tires and more tire and brake ven- 54 78,000 81,500 86,500 91,500 97,000 102,500 55 78,500 82,500 87,500 92,000 97,500 103,000 56 79,500 83,000 87,500 92,500 98,000 103,500 5. Greater width for efficient storage of 4- and 8-foot standard 57 80,000 83,500 88,000 93,000 98,500 104,000 modular sizes of merchandise. 58 84,000 89,000 94,000 99,000 104,500 59 85,000 89,500 94,500 99,500 105,000 60 85,500 90,000 95,000 100,500 105,500 6 7 The following table shows the essential proposals as made by S. 2658 as reported, the administration's recommendation and the general The following tables show the present weight laws in effect in the AASHO policy and compares these to the present law various States: SINGLE-AXLE LIMIT ON INTERSTATE SYSTEM Present law 1 [In pounds] S. 2658, as amended Administration AASHO recommendation Present State limits Statutory Tolerance Legal limit Single axle. 18,000 lbs limit Tandem axie 20,000 lbs 32,000 lbs 20,000 lbs 34,000 lbs 20,000 lbs. Gross weight 34,000 lbs W=500 LN 34,000 lbs. 73,280 lbs W-500 LN LN Alabama 18,000 1,800 19,800 №1 W=500 Alaska 20,000 20,000 N-1 Arizona 18,000 18,000 +12N+36 +12N+36 +12N+32 Arkansas 18,000 18,000 Width 96 ins California 18,000 18,000 Coverage 102 ins Grandfather clause Interstate System 102 ins Interstate System 102 ins.6 Colorado 18,000 18,000 July 1, 1956 Same July 1. 1956 (in effect) All Federal-aid systems All systems. Connecticut 22,400 448 22,848 Penalty Loss of apportion- Jan. 1, 1968 Delaware 20,000 20,000 ment. Same District of Columbia 22,000 22,000 Florida 20,000 2,000 22,000 Georgia 18,000 2,340 20,340 in 1 the Presently Single 1956 act. the Such laws greater of some limits of the were States in effect do permit on July higher 1, 1956 maximum and are weights continued and dimensions than were provided for Hawaii 24,000 24,000 Idaho 18,000 18,000 Tandem axle: axle: 26 24 States States allow more than 18,000 pounds; 15 of these States allow 20,000 by this pounds bill. Illinois 18,000 18,000 Width: 3 States allow widths allow of more 102 inches than 32,000 or more. pounds; 8 of these States allow 36,000 pounds or or more. more. Indiana 18,000 18,000 Iowa 18,000 540 18,540 3 2 Where Based on the 1964 BPR report (H. Doc. No. 354, 89th Cong. 2d sess.). Kansas 18,000 18,000 feet between W=overall the gross weight on any group of two or more consecutive axles to the Kentucky 18,000 900 18,900 consideration. in extreme of any group of two or more consectuive axles, and N=number nearest of axles 500 pounds, in the group L=distance under Louisiana 18,000 18,000 Maine 22,000 22,000 represents 4 Where W distance represents between overall gross weight on any group of two or more consecutive axles to the nearest 500 Maryland 22,400 22,400 foot, L 5 Where and N represents number centers of axles of in the the extreme group axles under of consideration. any group of two or more consecutive axles to the pounds, nearest Massachusetts 22,400 22,400 Michigan 18,000 18,000 L=distance maximum in feet weight between in pounds carried on any group of two or more axles, including Minnesota 18,000 18,000 in ances, the group under consideration. the extremes of any group of two or more consecutive axles, any and and N=number all weight of toler- axles Mississippi 18,000 18,000 Missouri 18,000 18,000 6 Interstate System plus other roads with 12-ft. lanes. Montana 18,000 18,000 Nebraska 18,000 900 18,900 Nevada 18,000 18,000 New Hampshire 22,400 22,400 New Jersey 22,400 1,120 23,520 New Mexico 21,600 21,600 New York 22,400 22,400 North Carolina 18,000 1,000 19,000 North Dakota 18,000 18,000 Ohio 19,000 19,000 Oklahoma 18,000 18,000 Oregon 18,000 8,000 Pennsylvania 22,400 672 23,072 Rhode Island 22,400 22,400 South Carolina 20,000 20,000 South Dakota 18,000 18,000 Tennessee 18,000 18,000 Texas 18,000 18,000 Utah 18,000 18,000 Vermont 22,400 22,400 Virginia 18,000 18,000 Washington 18,000 18,000 West Virginia 18,000 900 18,900 Wisconsin 19,500 19,500 Wyoming 18,000 18,000 Number of States 18,000 25 18,001 to 20,000 11 20,001 lbs and over 15 Total 51 8 9 TANDEM-AXLE LIMIT ON INTERSTATE SYSTEM HIGHEST PRACTICAL WEIGHT BY STATES [In pounds] Hn pounds] Present State limits Statutory Tolerance Legal limit Highest Highest limit State practical State practical gross weight gross weight Alabama 36,000 Alaska 3,600 39,600 34,000 Arizona 34,000 Alabama 73,280 Montana 76,800 32,000 Arkansas 32,000 Alaska 89,000 Nebraska 73,280 32,000 California 32,000 Arizona 76,800 Nevada 76,800 32,000 Colorado 32,000 Arkansas 73,280 New Hampshire 73,280 36,000 Connecticut 36,000 California 76,800 New Jersey 73,280 36,000 720 Delaware 36,720 Colorado 76,000 New Mexico 86,400 36,000 District of Columbia 36,000 Connecticut 73,000 New York 71,000 38,000 Florida 38,000 Delaware 73,280 North Carolina 73,280 40,000 4,000 Georgia 44,000 District of Columbia 70,000 North Dakota 73,280 36,000 680 Hawaii 40,680 Florida 73,271 Ohio 78,000 32,000 Idaho 32,000 Georgia 73,280 Oklahoma 73,280 32,000 Illinois 32,000 Hawaii 73,280 Oregon 76,000 32,000 Indiana 32,000 Idaho 76,800 Pennsylvania 73,279 32,000 Iowa 32,000 Illinois 73,280 Rhode Island 73,280 32,000 960 Kansas 32,960 Indiana 73,000 South Carolina 73,280 32,000 Kentucky 32,000 lowa 73,280 South Dakota 73,280 32,000 1,600 Louisiana 33,600 Kansas 73,280 Tennessee 73,280 32,000 Maine 32,000 Kentucky 73,280 Texas 72,000 32,000 Maryland 32,000 Louisiana 74,000 Utah 79,900 40,000 Massachusetts 40,000 Maine 73,280 Vermont 73,280 36,000 Michigan 36,000 Maryland 73,280 Virginia 70,000 26,000 Minnesota 126,000 Massachusetts 73,000 Washington 76,000 32,000 Mississippi 32,000 Michigan 1 96,000 West Virginia 73,280 32,000 Missouri 32,000 Minnesota 73,280 Wisconsin 73,000 32,000 Montana 32,000 Mississippi 73,280 Wyoming 73,950 32,000 Nebraska 32,000 Missouri 73,280 32,000 Nevada 1,600 33,600 32,000 New Hampshire 32,000 36,000 36,000 New Jersey 1 Maximum gross weight for 6-axle twin trailer combination; higher maximum gross weight possible with increase in 32,000 1,600 New Mexico 33,600 number of axles. 34,320 New York 34,320 36,000 North Carolina 36,000 36,000 North Dakota 2,000 38,000 COMMITTEE VIEWS 32,000 Ohio 32,000 32,000 Oklahoma 32,000 32,000 32,000 The Committee on Public Works recommends the enactment of Oregon 32,000 32,000 Pennsylvania 36,000 Rhode Island 1,080 37,080 S. 2658, as amended, in the interest of promoting the most productive, 36,000 36,000 South Carolina economic and efficient use of our highway system by passenger and 32,000 32,000 South Dakota 32,000 32,000 freight carriers. The committee believes that the benefits to be derived Tennessee 32,000 32,000 Texas 32,000 32,000 from the increased sizes and weights of motor vehicles which would Utah 33,000 33,000 Vermont be permitted by the legislation would offset the increased maintenance 36,000 36,000 Virginia 32,000 32,000 and construction costs for our highway system. This legislation will Washington 32,000 32,000 West Virginia 32,000 Wisconsin 1,600 33,600 establish the proper maximum dimensions and weights for the long- 32,000 32,000 Wyoming term use of the Interstate System. The committee further believes that 36,000 36,000 highway safety will not be jeopardized as a result of the proposed Number of States at- maximum allowable sizes and weights. It further emphasizes that the 32,000 lbs. 27 32,001 to 36,000 lbs ultimate decisions related to vehicle dimensions and weights will be 16 36,001 lbs. and over 8 made by the States individually after consideration by the State legis- Total 51 latures of all the relevant factors. Since the legislation establishes a 1 On designated highways 1 pair of tandems permitted 32,000 lbs. maximum level of use consistent with protection of the Federal in- vestment in the National System of Interstate and Defense Highways, and no changes can be made in existing highway operations without the affirmative action of the States, the committee recommends the adoption of S. 2658 as amended. CHANGES IN EXISTING Law MADE BY THE BILL, AS REPORTED In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as re- ported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman) : 10 SECTION 127 OF TITLE 23, UNITED STATES CODE § 127. Vehicle weight and width limitations-Interstate System [No funds authorized to be appropriated for any fiscal year under section (b) of the Federal-Aid Highway Act of 1956 shall be ap- portioned to any State within the boundaries of which the Interstate MINORITY VIEWS System may lawfully be used by vehicles with weight in excess of eighteen thousand pounds carried on any one axle, or with a tandem- The undersigned present the following views not because we are axle weight in excess of thirty-two thousand pounds, or with an over- against the proposed legislation, but because it is apparent as the all gross weight in excess of seventy-three thousand two hundred and following will show, that not all the facts and factors were considered eighty pounds, or with a width in excess of ninety-six inches, or the which relate to obvious problems which will result if the States take corresponding maximum weights or maximum widths permitted for advantage of what the committee is authorizing or, interpret commit- vehicles using the public highways of such State under laws or regu- tee action as endorsement of a policy on weight, width, and length lations established by appropriate State authority in effect on July 1; limits. 1956, whichever is the greater. Any amount which is withheld from It is apparent that there is a deplorable lack of agreement among the apportionment to any State pursuant to the foregoing provisions shall engineers and experts as to the desirability of allowing greater weights lapse. This section shall not be construed to deny apportionment to and dimensions of motor vehicles. any State allowing the operation within such State of any vehicles The lack of any limitation on length will cause serious traffic or combinations thereof that could be lawfully operated within such hazards. State on July 1, 1956. With respect to the State of Hawaii, laws or The increase in allowable width, from 8 feet to 81/2 feet, will cause regulations in effect on February 1, 1960, shall be applicable for the serious traffic hazards. purposes of this section in lieu of those in effect on July 1, 1956.] Although the bill applies to the Interstate System, it will affect all No funds authorized to be appropriated for any fiscal year under other highways which must be used to enter or exit from the Inter- section 108(b) of the Federal-Aid Highway Act of 1956 shall be ap- state System. portioned to any State within the boundaries of which the Interstate Since it is conceded that heavier vehicle weights will damage high- ,System may lawfully be used by vehicles or combinations thereof with ways and cause additional expense, the bill should not be enacted until weight in excess of twenty thousand pounds including tolerances oar- additional user taxes are imposed upon the beneficiaries of this bill. ried on any one axle, or with a tandem-axle weight in excess of thirty- The action of this committee which makes possible the increasing of four thousand pounds inçluding tolerances, or with a width in excess truck sizes and weights on the National System of Interstate Defense of one hundred and two inches plus additional width necessary for Highways can be and, no doubt will be, described by knowledgeable safety devices and tire bulge due to loads, or with an overall gross people as an ill-advised attempt at satisfying special interest. weight including tolerances on a group of two or more consecutive This legislation becomes "special" when there is evidence that less axles in excess of that produced by application of the following than 300,000 trucks out of 15 million trucks will apparently be able to formula: take advantage of it. Some will reçognize it as "special" because the 80 million passenger car drivers and 15 million light truck owners will W=500 Missi have to share in the major cost of the bill. And there will be a "bill." The U.S. Department of Transportation estimates that it will cost where W=overall gross weight on any group of two or more con- $2,800 million for new construction and upgrading of older highways seoutive axles to the nearest 500 pounds, L=distance in feet between if every State takes advantage of this new authorization. the extreme of any group of two or more consecutive axles, and N= This legislation is much more important than we have recognized number of axles in the group under consideration; or the sorrespond- to date because an analysis of activities of Government expenditures for ing maximum weights or maximum widths permitted for vehicles road building in the Public Works Committee indicates $232 billion using the Interstate System within such State under laws or regular has been invested in highway networks in the United States. Passage of tions established by appropriate State authority in eff ect on anuary 1, this bill may seriously jeopardize this investment and make much of 1968, whichever is greater. Any amount which is withheld from appor- our highway system obsolete. Many people and government representa- tionment to any State pursuant to the foregoing provisions shall lapse. tives interested in highways recognize this including the mayors in This section shall not be construed to deny apportionment to any State their recent U.S. Conference of Mayors. They passed a resolution allowing the operation within such State of any vehicles or combina- opposing provisions of this bill in its present form. tions thereof that could be lawfully operated upon the Interstate Sys- There was hasty consideration and inadequate testimony when the tem within such State on January 1, 1968. bill was considered on the Senate side. It has had a very similar experi- ence on the House side thus far. When the bill was in the subcommittee, ni won Members who were opposed to the passage because they did not have all ai bezoqozq egriedo Off ni the facts were given unequivocal assurance that they would have full (11) 12 13 and adequate opportunity to discuss the bill, the effects of the legis- lation and a chance to consider any and all amendments. The assurance The results of their study will not be available for congressional con- sideration for some time. Thus, it is apparent we are legislating to was given also that every Member would have an opportunity to ex- press his views and to ask questions. increase legal weights before we have received information on the The record clearly shows that the full committee passed the bill after capabilities of bridges to withstand such weights. less than 40 minutes of discussion and that many Members with ques- This legislation affects only the Interstate System described as the tions, with suggestions and with pertinent observations had very little best highway system ever built. This is true but we should not forget that truck movements do not begin or end on the Interstate, and that or no opportunity to be heard. Many members of the committee felt like they didn't have "their day in court." In addition, no member of the they must use, in order to serve the public, the other streets and roads as well. committee had a chance to review the entire record of the hearings These streets and roads are not built to the same standards as the nor the special questions addressed to the American Trucking As- the committee. sociations, Inc., and their answers with an addendum by a member of Interstate, yet some would sluff this off, saying: "This is not our problem, that is a question for each State." Yet we know State legis- lators will be just as hard pressed to beat back the intensive lobbying It should be noted that much of the stimulus for increasing existing size and weight limits has come from the West, Truckers there say efforts by large truckers on this issue. they were put at a disadvantage when the 1956 act was passed Since the 1956 legislation, 48 States have increased sizes and weights. limiting them to 18,000-pound single and 32,000-pound tandem axle This indicates the impracticality of adopting standards only for the loadings. Many of the Eastern States already permitted heavier axle Interstate System. Limiting standards to the Interstate System pro- loadings and, under the terms of the grandfather clause, could con- vides heavy trucking a continuing opportunity and incentive to pursue tinue these heavier weights. their checkerboard tactics under which greater maximums permitted Without delving into the record, the arguments of the wéstern in some States are used to bring pressure on the legislatures of neigh- truckers seem to have merit. However, the facts do not bear out the boring States for similar concessions. validity of their position. Bureau of Public Roads tables conclusively Such a ceiling on all Federal-aid systems was requested by the De- demonstrate that for the last 25 years truckers in the Western States partment of Transportation, AASHO and aaa, and this bill should provide for such a ceiling. This would be adopting good public policy have parts. consistently carried heavier payloads than their eastern counter- and certainly would be advisable for the industry. Another reason Congress should be concerned with this situation is It is difficult to comprehend why this legislation has been approved when opposition has been expressed by such respected groups as the that the Federal highway trust fund pays the bill. We do have a right American Automobile Association and the U.S. Conference of Mayors and obligation to be concerned over the increased deterioration of the and State highway. departments. For the Public Works Committee roads. Failure to establish ceilings on all Federal-aid systems in which we have invested billions and billions of dollars is just poor business. to reject the counsel of these organizations is unfortunate and it is strange, indeed, that we are rejecting the much sought after counsel Finally, there is the issue of safety. Testimony by the American of AASHO (American Association of State Highway Officials) whose Trucking Association showed that heavy trucks accounted for 1.54 official policy is 20,000-pound single axles and 32,000-pound tandem percent of vehicle registrations in 1964, traveled 5.33 percent of all the axles. These are the true experts-the men who must build and main- miles operated in this country, but were involved in 11.6 percent of the fatalities. advice on trucks. tain these highways-yet 'we say in effect, "Sorry, we won't heed your It is reasonable to assume that this record will continue to worsen if The president of AASHO, John O. Morton, has testified and rightly we permit bigger and heavier trucks on our Nation's highways and if pointed out interstate bridges are designed for a 32,000-pound axle we permit this legislation to pass with an increase in permissible width loading. This limitation applies to bridges on our Interstate System. from a flat 96 inches to 102 inches plus safety gear, which means 108- inch widths, an increase of 12 inches. loads." He said "A road network is useless if its bridges cannot handle. the We will have 9-foot wide trucks on our Interstate System which The record is replete with other examples of why we should not has 12-foot lanes, or a safety clearance of 18 inches on each side. pass this legislation now and before we have considered all of the Imagine trying to steer a car through an opening with only 18 inches facts and factors that relate to deterioration and maintenance costs. to spare on either side at 65 miles per hour. The testimony of Francis C. Turner, the respected Director of the Hardly appreciated or even known by members of the committee, is Bureau of Public Roads, is impressive. He says increasing permissive the fact that apparently this bill would permit triple-trailer trucks. weights from the present 32,000-pound limit to 34,000 pounds would It would allow trucks almost double the present permissible weight. overstress the Interstate System bridges by 32 to 36 percent. According to the law as we know it, the ceiling is now 73,280 pounds The Department of Transportation and the State highway depart- and according to the formula in the bill as we understand it now, the bill would permit trucks to operate weighing 138,000 pounds. Some ments are currently engaged in a study of all highway and railroad bridges. Their study will determine the capabilities of bridges to safely believe there is no ceiling at all. It is the feeling of the minority that the committee should heed the accommodate the weights encountered under today's traffic conditions. weight, width, and length requests. It is not the feeling of the minority 14 that we should not heed the requests for increasing the weight, width, and length. Indeed a growing, expanding society like ours must grow and progress, but it is our view that we should do this only after we have considered all of the facts and factors that relate to the many evident problems that testimony has shown so clearly. The attitude of the Bureau of the Budget as expressed in their re- port is as follows, "We wish to emphasize the close relationship be- tween S. 2658 and the administration's proposed highway user charges SUPPLEMENTAL VIEWS OF CONGRESSMEN for heavy vehicles. Since passage of S. 2658, as introduced or with CLEVELAND AND McEWEN the amendments proposed by the Department of Transportation, would result in higher costs and reduced life of the highway system, We are opposed to S. 2658 in its present form and at the present time. we concur with the view of the Department that increased user charges We concur in some respects with the minority views of Congressmen are an essential complement to this legislation." McCarthy, Schwengel, Everett, and Kee. By letter dated April 22, 1968, the Secretary of Transportation Our present opposition to S. 2658 in its present form may best be recommended the enactment of legislation providing for, "A more expressed in the form of certain reservations which we have. We do equitable distribution of the costs of the program borne by different not feel that adequate time and study have been given to resolving these classes of users." Among other things, the heavier trucks would be required to pay additional highway user taxes. Since it is conceded reservations. 1. There is lack of agreement among the engineers and experts as to that permitting heavier and larger vehicles will create additional the desirability of allowing greater weights and dimensions of motor expenses, S. 2658 should be deferred until the enactment of legislation under which the beneficiaries of S, 2658-the relatively few operators vehicles. 2. The lack of any limitation on length could cause serious traffic and of large trucks and truck-trailer combinations-will be required to safety hazards. pay, in the form of increased highway user taxes, their fair share of 3. The increase in allowable width, from 8 feet to 81/2 feet, could such additional costs. cause serious traffic and safety hazards. Hopefully, the Members will have some second thoughts on this 4. Although the bill applies to the Interstate System, it will affect matter and will consider our suggestion to give more thought to the all other highways which must be used to enter upon or exit from problem and the need with the view of legislating more intelligently the Interstate System. and adequately on the subject of increased width, weight and length. 5. Since it is conceded that allowing heavier vehicle weights will ROBERT A. EVERETT. damage highways and cause additional expense, the bill should not be 100g tami FRED SCHWENGEL. enacted until additional user taxes upon the beneficiaries of the bill RICHARD D. McCARTHY. are fully considered. MI JAMES KEE. It is quite true that this legislation is permissive and does not force the several States to adopt these increases. As a practical matter, how- 0.11 01 ever, the Congress by giving its stamp of approval to these increases would in effect be paving the way for increases by many of the States. of Hiw biosou JAMES C. CLEVELAND. 11 bire THO ROBERT C. McEwEN. 08 (15) Hiw по 81 to вопвтвэӏэ TO tinereq blrrow OF bas Transportation HOUSE OF REPRESENTATIVES 90TH CONGRESS REPORT 2d Session No. 1667 AGRICULTURAL COOPERATIVE TRANSPORTATION EXEMPTION JULY 10, 1968.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. STAGGERS, from the Committee on Interstate and Foreign Commerce, submitted the following REPORT [To accompany S. 752] The Committee on Interstate and Foreign Commerce, to whom was referred the bill (S. 752) to amend sections 203(b)( (5) and 220 of the Interstate Commerce Act, as amended, and for other purposes, having considered the same, report favorably thereon without amend- ment and recommend that the bill do pass. PURPOSE OF THE BILL The purpose of S. 752 is to clarify the meaning of the exemption from the provisions of the Interstate Commerce Act provided for the transportation by motor vehicles operated by an agricultural coopera- tive association, particularly when such vehicles are used to perform transportation for nonmembers. This clarification is accomplished through amendment to section 203(b)(5) of the act restricting such transportation where the non- members are neither farmers, cooperative associations, nor federations thereof to that which is (1) incidental to the association's primary transportation operation and necessary for its effective performance, and in no event in excess of 15 percent of its total transportation serv- ice and including within such percentage transportation performed for the United States; and (2) amending section 220 of the act to grant the Commission specific authority to examine the books and records of such cooperative as they pertain to their transportation services. 98-006 GERALE FORD LIBRARY 2 3 BACKGROUND AND NEED FOR THE LEGISLATION member and nonmember business transacted by such association. The agricultural cooperative transportation exemption set forth in section 293(b)(5) of the Interstate Commerce Act provides as Inasmuch as section 203(b)(5) is modified only by the terms of the follows: definition of a cooperative association as defined in the Agricultural Section 203(b) "Nothing in this part except the provisions Marketing Act, it will be perceived that the problems arising in con- of section 203 relative to qualifications and maximum hours nection with transportation by such an association for nonmembers stem from item No. 3, above; namely, that the association may deal in of service of employees and safety of operation or standards services for nonmembers in an amount up to the value of the business of equipment shall be construed to include * (5) motor transacted with members and from the fact that business done for the vehicles controlled and operated by a cooperative association as defined in the Agricultural Marketing Act, approved June United States is not included in determining the volume of such non- member business. 15, 1929, as amended, or by a federation of such cooperative associations, if such federation possesses no greater powers or In the last Congress, Public Law 89-170 was enacted, culminating purposes than cooperative associations SO defined;" many years of effort to provide the Interstate Commerce Commission with improved tools to combat illegal carriage. This legislation in- Under this section, motor vehicles controlled and operated by cluded the transportation message recommendations for cooperative agricultural cooperatives, or by a federation of such cooperatives, State and Federal enforcement agreements, civil forfeiture penalties, are exempt from the Commission's economic regulation provided increased penalties, and, in addition, contained provisions for uniform the cooperatives meet certain qualifying criteria as defined in the State registration of motor carrier certificates. Agricultural Marketing Act of 1929 (12 U.S.C. 1141j). The original At that time some consideration was given to the problem of those exemption from regulation for agricultural cooperatives was included operators performing general transportation services under the guise in the Motor Carrier Act of 1935. In 1940, this exemption was ex- of being exempt agricultural cooperatives. The Interstate Commerce panded to include a federation of such cooperative associations, if Commission made certain recommendations for legislation and such federation possesses no greater powers or purposes than coopera- extensive hearings were held by the Senate committee on this problem. tive associations SO defined. Following the decision of the U.S. Court of Appeals for the Ninth Section 15(a) of the Agricultural Marketing Act of 1929 (12 U.S.C. Circuit in Northwest Agricultural Cooperatives Association V. Interstate 1141j), defines the cooperatives entitled to the exemption under section Commerce Commission (350 F. 2d 252 (1965), certiorari denied, 382 203(b)(5) as follows: U.S. 1011 (1966)), which reversed the position taken by the Inter- As used in this act, the term "cooperative association" state Commerce Commission in 1961 in the Machinery Haulers means any association in which farmers act together in Association V. Agricultural Commodity Service (86 M.C.C. 5), the processing, preparing for market, handling, and/or market- Commission recommended that something be done to limit the scope ing the farm products of persons so engaged, and also means of the cooperative exemption since it appeared that the case had any association in which farmers act together in purchasing, stimulated expansion of the transportation of non-farm-related. testing, grading, processing, distributing, and/or furnishing traffic being handled by these cooperatives for nonmembers. The farm supplies and/or farm business services: Provided, how- information stated that certain farm cooperative associations were ever, That such associations are operated for the mutual even soliciting through newspaper advertisements and by letters to benefit of the members thereof as such producers or pur- traffic managers for all kinds of freight on backhaul movements. In chasers and conform to one or both of the following require- the case of one organization, Agricultural Transportation Association ments: of Texas, the Department of Defense advised that they intended to First. That no member of the association is allowed more continue to use their services for the movement of military traffic, than one vote because of the amount of stock or membership even after the ICC had found the organization to be engaging in capital he may own therein; and for-hire transportation without appropriate authority, until review Second. That the association does not pay dividends on of the ICC decision was completed in the court. The Commission's stock or membership capital in excess of 8 per centum per decision that this operation was unlawful was upheld by a three- annum. judge court decision in Agricultural Transportation Association of And in any case to the following: Texas V. United States (274 Fed. Supp. 528). Third. That the association shall not deal in farm products, The Commission's recommendations for legislation were submitted farm supplies, and farm business services with or for non- in the 90th Congress as H.R. 6530 and as S. 752. Following hearings members in an amount greater in value than the total amount last year by the Senate committee on S. 752, all parties at interest, of such business transacted by it with or for members. All including the Department of Agriculture, the agricultural cooperative business transacted by any cooperative association for or on organizations and farm groups, worked out language acceptable to behalf of the United States or any agency or instrumentality all which substantially amended the bills as introduced and is con- thereof shall be disregarded in determining the volume of tained in the form of S. 752 as it passed the Senate and was referred to this committee, and is the text of the bill here being reported. H. Rept. 1667 H. Rept. 1667 4 5 WHAT THIS BILL DOES be within the 15-percent limitation, such transportation must also The bill is in two sections. The first section amends section 203(b) (5) be shown to be incidental and necessary for the exemption to apply. of the Interstate Commerce Act by adding clarifying and limiting The court in that Northwest decision defined "incidental and neces- language to the exemption therein contained. This clarifying and sary" as follows: limiting language is in itself limited by three provisos. The second TOILD On the uncontradicted facts, Northwest's transpor- section of the bill amends section 220 of the Interstate Commerce tation of nonfarm products and supplies was incidental and Act by adding an additional subsection (f) to specifically authorize necessary to its farm-related transportation both in character the Commission to inspect the books and records pertaining to motor and in amount-incidental because limited to otherwise vehicle transportation of cooperatives and federations required to give empty trucks returning from hauling member farm products the notice called for in the second proviso of section 1 of this bill. to market, and producing a small return in proportion to The first section of the bill amends section 203(b)(5) but is not in- Northwest's income from trucking farm products and farm tended to alter existing law defining cooperative associations or supplies; necessary because it is not economically feasible federations of such cooperative associations. The definitions and limi- to operate the trucks empty on return trips and because the tations set forth in the Agricultural Marketing Act of 1929 (12 U.S.C. additional income obtained is no more than that required 1141j) and in section 521 of the Internal Revenue Code would continue to render performance of the cooperative's primary farm to apply. transportation service financially practicable. The bill adds further limitations to those presently contained in section 203(b)(5) with respect to the interstate (motor) transportation The committee intends by the phrase "incidental to its primary which may lawfully be performed by a cooperative association or transportation operation and necessary for its effective performance" federation of cooperative associations without first obtaining a certifi- that a cooperative's transportation for nonmembers must have the cate or permit under the provisions of the Interstate Commerce Act. direct relationship above described to the cooperative farm-related The first section begins by exempting from the additional limitations transportation. contained therein interstate (motor) transportation by a cooperative The second maximum limitation is that such "other" nonmember or federation "for nonmembers who are neither farmers, cooperative transportation shall in no event exceed 15 percent of the cooperative associations, nor federations thereof for compensation." A cooperative or federation's total interstate transportation services in any fiscal association or federation may continue to transport its own property, year, measured in terms of tonnage. This same percentage is used in its members' property, the property of other farmers, and the property section 521(b)(4) of the Internal Revenue Code of 1954 as a limitation of other cooperatives or federations in accordance with existing law, on nonmember, nonproducer purchases. The Department of Agricul- except insofar as the third proviso of the first section may be applicable ture further recommended that the 15 percent be measured in terms with respect to the limit on member/nonmember transportation. of interstate tonnage transported, rather than in terms of revenue, The next phrase in the first section excepts "transportation other- inasmuch as the cooperatives do not generally collect revenues in the wise exempt under this part." The committee intends by this phrase transportation of their own goods.¹ that cooperatives or federations may transport agricultural and other Two additional pertinent exemptions contained in sec. 203(b) of commodities exempt under section 203(b)(6) of part II of the Inter- the Interstate Commerce Act are 203(b)(4a), which exempts motor state Commerce Act, in accordance with existing law, ecxept insofar vehicles controlled and operated by any farmer when used in the trans- as the third proviso of the first section may be applicable with respect portation of his agricultural (including horticultural) commodities to the limitation on member/nonmember transportation. and products thereof, or in the transportation of supplies to his farms; Section 1 of the bill next sets forth two maximum limitations on the and, 203(b)(6), which exempts motor vehicles used in carrying live- interstate (motor) transportation which may lawfully be performed stock, fish, or agricultural (including horticultural) commodities. (not by cooperatives or federations for nonmembers who are neither including manufactured products thereof) listed as exempt in that farmers, cooperative associations nor federations thereof for compen- subsection. sation, and excepting transportation otherwise exempt under part II The 15 percent maximum limitation on tonnage is of the total of the Interstate Commerce Act. These maximum limitations on interstate transportation services of a cooperative or federation in any "other" nonmember for-hire transportation are: (1) such transporta- fiscal year of such cooperative or federation. In other words, the base tion shall be limited to that which is incidental to its (the cooperative to which the 15 percent is applicable is all of the interstate (motor) or federation) primary transportation operation and necessary for its tonnage transported by a cooperative in any fiscal year. Included in effective performance; and (2) shall in no event exceed 15 percent of the base would be any interstate (motor) tonnage transported by a its total interstate transportation services in any fiscal year, measured cooperative of its own property, its members, of nonmember farmers, in terms of tonnage. The committee intends, as indicated by the lan- of other cooperatives or federations, exempt commodities, and "other" guage, that such "other" transportation must meet both tests to be 1 Sec. 521(b)(4) of the Internal Revenue Code relating to the tax treatment of farmer cooperatives meeting lawful, that is, be both incidental and necessary and within the 15- the requirements of that section reads as follows: "TRANSACTIONS WITH NONMEMBERS.-Exemption shall not be denied any such association which percent limitation. In other words, even if a cooperative were, for markets the products of nonmembers in an amount the value of which does not exceed the value of the products marketed for members, or which purchases supplies and equipment for nonmembers in an amount example, to haul only 1 percent "of other" transportation, and thus the value of which does not exceed the value of the supplies and equipment purchased for members, provided the value of the purchases made for persons who are neither members nor producers does not exceed 15 per- H. Rept. 1667 cent of the value of all its purchases." H. Rept. 1667 6 7 nonmember transportation. The "other" nonmember transportation transported would be exempt under section (b) (6). As heretofore which may not lawfully exceed 15 percent of the tonnage would indicated, transportation for nonfarm business of a member of a include any transportation for the U.S. Government, and any trans- cooperative (such as for his "construction business") would be con- portation of "other" freight. The committee intends that transporta- sidered to be nonmember transportation; and, under the first proviso, tion would be considered "other" transportation if it were for the U.S. Government property transported would also be considered to nonfarm business of a cooperative member farmer or nonmember be nonmember. farmer. In the example earlier cited on nonfarm business, gasoline Section 2 of the bill amends section 220 of the act to authorize the transported for a cooperative member would be included within the Commission to have access to and authority to inspect, examine, and 15 percent maximum limitation if it were for use in his "construction copy any and all accounts, books, records, memorandums, corre- business." spondence, and other documents pertaining to motor vehicle transpor- The first proviso of section 1 of the bill makes clear that (interstate tation of a cooperative or federation which is required to give notice motor) transportation performed by a cooperative on behalf of the under section 1 of this bill. A proviso to section 2 provides that the United States or any agency or instrumentality thereof shall be Commission shall not have authority to prescribe the form of any deemed to be transportation performed for a nonmember. As hereto- accounts, records, or memorandums to be maintained by a cooperative fore indicated, such transportation for the Government is subject to or federation. both the "incidental and necessary" and 15 percent maximum tonnage This language grants the Commission this authority only in the limitation. However, if the traffic transported for the Government is case of those cooperatives who are "required to give notice" and only of agricultural commodities exempted under section 203(b)(6), such as to their transportation activities. tonnage would fall within the total, but not be subject to the 15 per- cent maximum limitation. HEARINGS The second proviso requires a cooperative or federation which Hearings were held on H.R. 6530 and S. 752 by the Subcommittee performs interstate (motor) transportation for nonmembers who are on Transportation and Aeronautics on July 1, 1968. The bill is sup- neither farmers, cooperative associations, nor federations thereof, ported by the Interstate Commerce Commission, the National Asso- except transportation otherwise exempt under this part, to notify ciation of Railroad & Utilities Commissioners, the National Council the Commission of the cooperative's or federation's intent to perform of Farm Cooperatives, the American Farm Bureau Federation, the such transportation prior to the commencement thereof. In other American Trucking Associations, and the Association of American words, a cooperative would be operating unlawfully if it failed to file Railroads. The bill is opposed by certain farm cooperatives, the notice with the ICC before transporting nonexempt property for the Bureau of the Budget, and by the Department of Defense insofar as U.S. Government for nonfarm shippers; or in connection with the it pertains to the elimination of the exemption of business done with nonfarm business of member farmers or nonmember farmers. the Government in the calculation of percentages. The third proviso clarifies that in no event shall any such coopera- tive association or federation, required to give notice to the Com- COST OF THE LEGISLATION mission, transport interstate for compensation in any fiscal year of It is not believed that the enactment of this proposed legislation will such association or federation a quantity of property for nonmembers result in any significant increased cost to the Government. The pro- which, measured in terms of tonnage, exceeds the total quantity of visions of this bill will enable the Commission more effectively to property transported interstate for itself and its members in any fiscal carry out its present enforcement efforts in this area. The committee year of the cooperative. recognizes, however, that the Commission initially will have to devote Under the Agricultural Marketing Act of 1929, a cooperative may resources to develop rules and regulations for the administration of not deal in "farm products, farm supplies, and farm business services the clarifying and restricting provisions of this proposed legislation, with or for nonmembers in an amount greater in value than the total and to the enforcement thereof. It is expected that the Commission amount of such business transacted by it with or for members." This to fully utilize the State-Federal cooperative enforcement agreement provision applies to the total business activities of a cooperative. The provisions of Public Law 89-170 to lessen any budgetary impact in Department of Agriculture referred to the concern expressed by the the enforcement of this proposed legislation. regulated motor carrier industry that in a case where the only non- member business of a cooperative is transportation, the cooperative DEPARTMENTAL REPORTS could assert it would be free to engage in transportation for non- members in an amount equal in value to the total business of all DEPARTMENT OF AGRICULTURE, kinds conducted by the cooperative for members. Therefore, the Washington, D.C., June 28, 1968. Department suggested a provision along the lines of the third proviso Hon. HARLEY O. STAGGERS, to limit nonmember transportation business to an amount not to Chairman, Committee on Interstate and Foreign Commerce, exceed member transportation business. House of Representatives. Transportation for a nonmember under this proviso would be DEAR MR. CHAIRMAN: This will reply to your request of June 7, considered nonmember transportation whether or not the commodity 1968, for a report on S. 752, a bill to amend sections 203(b)(5) and 220 of the Interstate Commerce Act, as amended, and for other purposes. H. Rept. 1667 H. Rept. 1667 8 9 This bill would amend section 203(b)(5), known as the agricultural tion. For the convenience of the committee, a copy of the July 24, cooperative transportation exemption, in order to limit and clarify the 1967, report containing the suggestions is enclosed. All of these scope of the exemption and to assist the Interstate Commerce Com- suggestions are now embodied in S. 752, as passed by the U.S. Senate, mission in its enforcement operations. Specifically, there would be and as presently before your committee for consideration. added to section 203(b)(5): One additional provision is incorporated in the bill before you. That Provisions under which the interstate transportation that could provision is a specific limitation on the amount of interstate transpor- be performed by a cooperative association or federation of co- tation (except motor transportation otherwise exempt) which a coop- operative associations, for nonmembers who are neither farmers, erative association or federation of such associations may perform for cooperative associations nor federations thereof for compensation nonmembers who are neither farmers, cooperative associations, nor (except motor transportation otherwise exempt) would be limited federations thereof. Such interstate transportation, which the Depart- to that which is incidental to its primary transportation operation ment recommended be limited to an amount which is incidental to and necessary for its effective performance, but in no event more the primary transportation operation of the cooperative or federation than 15 percent of its total interstate transportation services in and necessary to its effective performance, is also made subject to a any fiscal year, measured in terms of tonnage. specific limitation of 15 percent of the total interstate transportation A provision that transportation performed by a cooperative services of the cooperative or federation. association or federation for or on behalf of the United States or The inclusion of a specific percentage limitation on the indicated any agency or instrumentality thereof shall be deemed to be traffic apparently stemmed from a concern on the part of regulated transportation performed for a nonmember. motor carriers that the limitation imposed by the terms "incidental" A provision that a cooperative association or federation which and "necessary" might permit a cooperative association or federation performs interstate transportation for nonmembers who are nei- to transport a significant volume of such traffic, perhaps up to 50 ther farmers, cooperative associations, nor federations thereof percent of its total interstate volume. The 15-percent limitation should (except motor transportation otherwise exempt) shall notify the allay any such concern. The Department does not object to this Interstate Commerce Commission of its intent to do so prior to limitation. the commencement thereof. The Bureau of the Budget advises that there is no objection to the A provision that in no event shall a cooperative association or presentation of this report from the standpoint of the administration's federation which is required to give notice to the Commission program. transport interstate for compensation in any fiscal year of such Sincerely yours, association or federation a quantity of property for nonmembers ORVILLE L. FREEMAN, Secretary. which, measured in terms of tonnage, exceeds the quantity trans- ported interstate for itself and its members in such fiscal year. DEPARTMENT OF AGRICULTURE, The bill would also amend section 220 of the Interstate Commerce Washington, D.C., July 24, 1967 Act by adding a new subsection which would authorize the Commission Hon. HARLEY O. STAGGERS, or its agents to have access to and authority, under its order, to inspect, Chairman, Committee an Interstate and Foreign Commerce, examine, and copy (but not prescribe the form of) accounts, books, House of Representatives. records, memorandums, correspondence, and other documents per- DEAR MR. CHAIRMAN: This is in response to your request of taining to motor vehicle transportation of a cooperative association March 13, 1967, for comments with respect to H.R. 6530, a bill to or federation of cooperative associations required to give notice to the amend section 203(b)(5) of the Interstate Commerce Act to clarify Commission pursuant to the third provision described above. this exemption with respect to transportation performed by agricul- The Department supports enactment of S. 752 in its present form. tural cooperative associations for nonmembers. In its original form, S. 752 was identical to H.R. 6530, introduced in This proposed legislation would, if enacted, limit the exemption of the House of Representatives on March 2, 1967. These bills, if enacted, motor vehicles controlled and operated by a cooperative association would have severely limited the scope of the exemption and would as defined in the Agricultural Marketing Act, approved June 15, have impaired the efficiency and economy under which transportation 1929, as amended, or by a federation of such cooperatives. The is conducted by cooperatives in accordance with existing provisions exemption from economic regulation would no longer apply to of law. such motor vehicles when used in the transportation, for nonmembers In its report to your committee under date of July 24, 1967, the for compensation, of property of any kind except farm products, Department expressed opposition to H.R. 6530. At the same time, farm supplies, or other farm related traffic. This provision for total however, the Department pointed out that there would appear to elimination of certain kinds of cargo from the benefits of exemption be merit in legislation which would clarify the scope of the exemption would impair the efficiency and economy under which transportation and assist the Interstate Commerce Commission in its enforcement is conducted by cooperatives in accordance with the existing provisions of the motor carrier provisions of the act. of law. To accomplish these objectives, the Department report suggested The Department does not favor enactment of this legislation. a number of clarifying provisions for inclusion in amendatory legisla- H. Rept. 1667 H. Rept. 1667 10 11 The interpretation of the cooperative exemption in section any property other than its own or that of its members, farm products of the Interstate Commerce Act has been the subject of much liti- and farm supplies for nonmember farmers, and commodities exempt gation. In a number of cases before the Interstate Commerce Com- under section 203(b)(6) of the Interstate Commerce Act. The ICC mission and the courts, the Department of Agriculture has consistently would thus have a record of those cooperatives which intend to trans- taken the position that the language of the Interstate Commerce Act, port the type of property which has been the subject of controversy. when read in conjunction with the language of the Agricultural Second, to further assist the ICC and to meet one of the problems Marketing Act of 1929, should be given a liberal construction; that with respect to which Commission representatives have expressed cooperatives should not be so limited in their motor carrier operations concern, we believe the Commission or its agents should be given that efficient operation on behalf of farmer members would be stifled; express authority to have access to the books, records, and accounts that it was clearly the intent of the statute that a cooperative, in the pertaining to the motor vehicle transportation of those cooperatives conduct of its motor carrier operations, be permitted to transport in which transport property in accordance with their notice to the Com- addition to its own and its members' property, incidental quantities of mission. property belonging to others; and that backhauls of nonmember Third, we believe the quantity of this noncooperative traffic de- property of a character which would otherwise be subject to regula- scribed above which a cooperative could transport in any year should tion, should be permitted, provided the transportation of such property be limited to a quantity which is incidental to the primary transpor- remained incidental to the transportation of property of the coopera- tation operation of the cooperative and necessary to its effective tive and its members. performance. Such a limitation, we believe, flows from application of Generally, the courts have ruled in favor of the Department's the decision in the Northwest case referred to previously. The amount interpretation of the statutes and against the more restrictive inter- of such property which cooperatives should be authorized to transport pretations which others have advocated. The decision of the Ninth in order to achieve efficiency of operation will vary depending upon Circuit Court of Appeals (350 Fed. 252 (1965), cert. denied, 382 U.S. the nature of the business of the cooperative, the geographic area 1011 (1966)), involving the Northwest Agricultural Cooperative where it operates, and the availability of other backhaul traffic. Association supports the Department's view. In this case the court Fourth, to clarify a question which has arisen in the past and which held that a cooperative "does not lose its status by engaging in activity appears to be one of concern to the regulated motor carrier industry, other than its primary statutory activity, so long as the other activity we believe that transportation operations which a cooperative carries is incidental to the primary one and necessary to its effective per- out for nonmembers should not exceed the transportation operations formance." Pursuant to the court's decision a cooperative would be which it carries out for members. Under the Agricultural Marketing permitted to engage in the transportation of so-called nonfarm related Act of 1929, a cooperative may not deal in "farm products, farm sup- property to the extent that such transportation activity is incidental plies, and farm business services with or for nonmembers in an amount to its primary activity of transporting its own or member property greater in value than the total amount of such business transacted and necessary to the effective performance of that activity. by it with or for members." This provision applies to the total business We should like to emphasize that our position in cases involving the activities of a cooperative. Apparently, there is concern that in a case cooperative exemption has not been dictated solely by the belief-that where the only nonmember business of a cooperative is transportation, this is the proper legal interpretation of the statutes, but also by the the cooperative would be free to engage in transportation for nonmem- conviction that the public interest would be appropriately served. bers in an amount equal in value to the total business of all kinds Clearly, the interests of the cooperatives and their farmer members conducted by the cooperative for members. A provision which would are served through the greater operating efficiencies made possible equate nonmember transportation business with member transpor- under the "incidental and necessary" test of the Northwest decision. tation business would alleviate this concern. Further, to the extent that the motor carrier operations of the co- There has also been concern expressed that under the language of operatives are efficient, the interests of the marketing system and of the Agricultural Marketing Act cooperatives could transport property consumers are served. At the same time, Department statistics clearly for the U.S. Government or any of its agencies without limit. We indicate that the impact upon the regulated common carrier industry question, however, whether any such result was intended. Any doubt of transportation by the cooperatives of property which might other- could be removed by a specific provision that transportation of prop- wise be transported by the common carriers is quite negligible. erty for the U.S. Government or any of its agencies is to be considered Accordingly, we believe it would not be in the public interest to adopt nonmember business. the restrictive approach provided for in H.R. 6530. We believe that legislation which embodies the views set out above Although the Department is opposed to H.R. 6530, there would would constitute an appropriate prescription of the intended scope of appear to be merit in legislation which would clarify the scope of the the cooperative exemption, and would provide a mechanism which exemption and assist the ICC in its enforcement of the motor carrier would materially assist ICC in its enforcement of motor carrier opera- provisions of the act. Our views may be summarized as follows: tions. It would give appropriate recognition to the interests of the First, we believe it would be appropriate for a cooperative to be agricultural community, the common carrier industry, and the public. required to notify the Interstate Commerce Commission if it intends to transport for hire in motor vehicles which it controls or operates, H. Rept. 1667 H. Rept. 1667 12 13 The Bureau of the Budget advises that there is no objection to the by the Interstate Commerce Commission. On August 10, 1965, the presentation of this report from the standpoint of the administration's U.S. Court of Appeals for the Ninth Circuit in the case of Northwest program. Agricultural Cooperative Association, Inc. V. Interstate Commerce Com- Sincerely yours, mission (350 F. 2d 252, cert. den. 382 U.S. 1011 (1966)) judicially ORVILLE L. FREEMAN, Secretary. established the right of agricultural cooperative association truck- lines to backhaul nonfarm commodities for nonmembers. The court limited the legitimate extent of such traffic to that which is incidental EXECUTIVE OFFICE OF THE PRESIDENT, and necessary to the farm-related transportation of the cooperative. BUREAU OF THE BUDGET, Since that decision, the Department of Defense has utilized the trans- Washington, D.C., July 1, 1968. portation services of agricultural cooperative associations where their Hon. HARLEY O. STAGGERS, use is deemed to be in the best interest of the Government. Chairman, Committee on Interstate and Foreign Commerce, S. 752, as introduced on January 31, 1967, would amend section House of Representatives, Washington, D.C. 203(b)(5) of the Interstate Commerce Act to expressly state that in providing for-hire transportation to nonmembers, the agricultural DEAR MR. CHAIRMAN: This is in reply to your request for the views cooperatives exemption applies only when the commodities trans- of the Bureau of the Budget on S. 752, an act to amend sections ported consist of farm products, farm supplies, or other farm-related 203(b)(5) and 220 of the Interstate Commerce Act, as amended, and traffic. The effect of such an amendment would be to eliminate the for other purposes. present exemption except in those situations where the backhaul This act is similar to H.R. 6530 in that it would restrict the statutory traffic is farm related. The amendment of section 203(b)(5) of the act exemption from economic regulation given to transportation by proposed in S. 752, as passed by the Senate on June 4, 1968, on the agricultural cooperatives. other hand, would place no such restriction as to the type of com- Unregulated transportation by cooperatives is extremely minor modities that may be handled for nonmembers, but would limit and limited in comparison to total for-hire truck and rail transporta- presently authorized nonmember traffic including transportation tion and does not appear to have been abused or to have had any performed for the U.S. Government to an amount not to exceed 15 adverse effect on the regulated carriers. Such transportation provides percent of the total interstate tonnage handled by such cooperatives revenues that are essential to the efficient operation of the coopera- during any fiscal year. Additionally, in order to assist the Interstate tives while also providing significant benefits and economies for Commerce Commission in the enforcement of the cooperatives exemp- the users. tion, S. 752 as passed by the Senate requires that cooperatives shall Although we would have no objection to an amendment clarifying that transportation for the U.S. Government is "nonmember busi- give the Commission prior notice of its intent to perform transporta- tion for nonmembers and for such purpose, make available all accounts, ness," we continue to believe, as expressed in our comments on H.R. books, and records for Commission examination. 6530, that the present exemption properly recognizes and carefully In letter to the Senate Committee on Commerce dated July 24, balances the needs of agriculture, the regulated for-hire carriers and 1967, this Department opposed enactment of S. 752, as introduced, the public interest. We would therefore be opposed to enactment of on the basis that the proposed amendment would totally deprive the S. 752. Department of Defense of the use of transportation facilities of bona Sincerely yours, fide farm cooperatives and thus remove an effective element of price WILFRED H. ROMMEL, and service competition. For this reason the Department of Defense Assistant Director for Legislative Reference. continues to oppose S. 752, as passed by the Senate. While the amendments proposed in S. 752, as passed by the Senate, appear to have merit in that they should clarify the scope of the exemp- JULY 2, 1968. tion and materially assist the Interstate Commerce Commission in Hon. HARLEY O. STAGGERS, its enforcement, this Department is particularly concerned with the Chairman, Committee on Interstate and Foreign Commerce, provision which would place a 15-percent limitation on nonmember House of Representatives, Washington, D.C. traffic. It is not known at this time whether this specific limitation DEAR MR. CHAIRMAN: Reference is made to your request for the considered together with the provision subjecting U.S. Government views of th the Department of Defense with respect to S. 752, 90th traffic thereto would materially reduce the ability of farm cooperatives Congress, an act to amend sections 203(b)(5) and 220 of the Inter- to furnish transportation services to the Department of Defense. state Commerce Act, as amended, and for other purposes. The Secre- However, to the extent that this or any other percentage limitation tary of Defense has assigned to the Department of the Army the would produce such a result, this Department strongly objects. responsibility for expressing the views of the Department of Defense This report has been coordinated within the Department of Defense on this act. in accordance with procedures prescribed by the Secretary of Defense. Section 203(b)(5) of the Interstate Commerce Act (49 U.S.C. exempts agricultural cooperative associations, as defined in the Agricultural Marketing Act of 1929, from economic regulation H. Rept. 1667 H. Rept. 1667 14 15 The Bureau of the Budget advises that, from the standpoint of the the United States or any agency or instrumentality thereof shall be deemed administration's program, there is no objection to the presentation of to be transportation performed for a nonmember: Provided further, this report for the consideration of the committee. That any such cooperative association or federation which performs inter- Sincerely yours, state transportation for nonmembers who are neither farmers, cooperative STANLEY R. RESOR, associations, nor federations thereof, except transportation otherwise Secretary of the Army. exempt under this part, shall notify the Commission of its intent to per- form such transportation prior to the commencement thereof: And pro- CHANGES IN EXISTING Law MADE BY THE BILL, AS REPORTED vided further, That in no event shall any such cooperative association or federation which is required hereunder to give notice to the Commission In compliance with clause 3 of rule XIII of the Rules of the House transport interstate for compensation in any fiscal year of such asso- of Representatives, changes in existing law made by the bill, as re- ciation or federation a quantity of property for nonmembers which, ported, are shown as follows (existing law proposed to be omitted is measured in terms of tonnage, exceeds the total quantity of property enclosed in black brackets, new matter is printed in italic, existing transported interstate for itself and its members in such fiscal year; law in which no change is proposed is shown in roman): INTERSTATE COMMERCE ACT ACCOUNTS, RECORDS, AND REPORTS SEC. 220. (a) The Commission is hereby authorized to require DEFINITIONS annual, periodical, or special reports from all motor carriers, brokers, SEC. 203. (a) lessors, and associations (as defined in this section); to prescribe the manner and form in which such reports shall be made; and to require from such carriers, brokers, lessors, and associations specific and full, (b) Nothing in' this part, except the provisions of section 204 true, and correct answers to all questions upon which the Commission relative to qualifications and maximum hours of service of employees may deem information to be necessary. Such annual reports shall and safety of operation or standards of equipment shall be construed give an account of the affairs of the carrier, broker, lessor, or associa- to include (1) motor vehicles employed solely in transporting school tion in such form and detail as may be prescribed by the Commission. The Commission may also require any motor carrier or broker to file children and teachers to or from school; or (2) taxicabs, or other motor vehicles performing a bona fide taxicab service, having a capacity with it a true copy of any contract, agreement, or arrangement between such carrier and any other carrier or person in relation to of not more than six passengers and not operated on a regular route or between fixed termini; or (3) motor vehicles owned or operated any traffic affected by the provisions of this part. The Commission by or on behalf of hotels and used exclusively for the transportation shall not, however, make public any contract, agreement, or arrange- of hotel patrons between hotels and ocal railroad or other common ment between a contract carrier by motor vehicle and a shipper, or carrier stations; or (4) motor vehicles operated, under authorization, any of the terms or conditions thereof, except as a part of the record in a formal proceeding where it considers such action consistent with regulation, and control of the Secretary of the Interior, principally the public interest: Provided, That if it appears from an examination for the purpose of transporting persons in and about the national of any such contract that it fails to conform to the published schedule parks and national monuments; or (4a) motor vehicles controlled and operated by any farmer when used in the transportation of his of the contract carrier by motor vehicle as required by section 218(a), agricultural (including horticultural) commodities and products the Commission may, in its discretion, make public such of the pro- thereof, or in the transportation of supplies to his farm; or (5) motor visions of the contract as the Commission considers necessary to disclose such failure and the extent thereof. vehicles controlled and operated by a cooperative association as defined in the Agricultural Marketing Act, approved June 15, 1929, as amended, or by a federation of such cooperative associations, if (g) The Commission or its duly authorized special agents, accountants, such federation possesses no greater powers or purposes than coopera- or examiners shall, during normal business hours, have access to and tive associations so defined[[;] but any interstate transportation authority, under its order, to inspect, examine, and copy any and all performed by such a cooperative association or federation of cooperative accounts, books, records, memorandums, correspondence, and other docu- associations for nonmembers who are neither farmers, cooperative asso- ments pertaining to motor vehicle transportation of a cooperative associa- ciations, nor federations thereof for compensation, except transportation tion or federation of cooperative associations which is required to give otherwise exempt under this part, shall be limited to that which is inci- notice to the Commission pursuant to the provisions of section 203 (b) (5) dental to its primary transportation operation and necessary for its of this part: Provided, however, That the Commission shall have no author- effective performance and shall in no event exceed 15 per centum of its ity to prescribe the form of any accounts, records, or memorandums to be total interstate transportation services in any fiscal year, measured in maintained by a cooperative association or federation of cooperative terms of tonnage: Provided, That, for the purposes hereof, notwithstanding associations. any other provision of law, transportation performed for or on behalf of H. Rept. 1667 H. Rept. 1667 Transportation 90-433 90th Congress, S. 752 July 26, 1968 An Act To amend sections 203(b) (5) and 220 of the Interstate Commerce Act, as amended, and for other purposes. B'e it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That at the end of Interstate section 203 (b) (5) of the Interstate Commerce Act delete the semicolon Commerce Act, and add the following language: but any interstate transportation amendment. performed by such a cooperative association or federation of coopera- 54 Stat. 921. tive associations for nonmembers who are neither farmers, cooperative 49 USC 303. associations, nor federations thereof for compensation, except trans- portation otherwise exempt under this part, shall be limited to that which is incidental to its primary transportation operation and neces- sary for its effective performance and shall in no event exceed 15 per centum of its total interstate transportation services in any fiscal year, measured in terms of tonnage: Provided, That, for the purposes hereof, notwithstanding any other provision of law, transportation performed for or on behalf of the United States or any agency or instrumentality thereof shall be deemed to be transportation performed for a non- member: Provided further, That any such cooperative association or federation which performs interstate transportation for nonmembers who are neither farmers, cooperative associations, nor federations thereof, except transportation otherwise exempt under this part, shall notify the Commission of its intent to perform such transportation prior to the commencement thereof: And provided further, That in no event shall any such cooperative association or federation which is required hereunder to give notice to the Commission transport inter- 82 STAT. 448 state for compensation in any fiscal year of such association or federa- 82 STAT. 449 tion a quantity of property for nonmembers which, measured in terms of tonnage, exceeds the total quantity of property transported inter- state for itself and its members in such fiscal year. SEC. 2. Section 220 of the Interstate Commerce Act, as amended, Accounts, etc. is further amended by adding the following immediately after sub- of motor carri- section (f): ers, access and inspection au- "(g) The Commission or its duly authorized special agents, account- thority. ants, or examiners shall, during normal business hours, have access to and authority, under. its order, to inspect, examine, and copy any and 49 USC 320. all accounts, books, records, memorandums, correspondence, and other documents pertaining to motor vehicle transportation of a cooperative association or federation of cooperative associations which is required to give notice to the Commission pursuant to the provisions of section 203 (b) (5) of this part: Provided, however, That the Commission shall have no authority to prescribe the form of any accounts, records, or memorandums to be maintained by a cooperative association or federation of cooperative associations." Approved July 26, 1968. (over) FORD LIBRAND Pub. Law 90-433 July 26, 1968 LEGISLATIVE HISTORY: HOUSE REPORT No. 1667 (Comm. on Interstate & Foreign Commerce). SENATE REPORT No. 1152 (Comm. on Commerce). CONGRESSIONAL RECORD, Vol. 114 (1968): June 4: Considered and passed Senate. July 15: Considered and passed House. to losseds non 01 betteril ad Inde May ship runing ati of el as DL linds sti 101 vus Insalf (its Intol all to to m 10 noisivory yes ni TO (na adi to Harled no TO A 901 honrioting of bernesh ad Usils lonsili TO dogs you babiver9 essdmomana not annoting Abide noliarrabol anoitazabal 100 918 Hade Junq Jqmaza agenza done morng of to adi at ind'T babining tossada of ai noitarisbet to down your Hada on of evig of hertipert TO done to 1097 least THE m той III cheques to as behoqannd to Lator sits agented lessit done III best Ham 80 ,10A to 022 a to gniwolfol adi yd bebname (1) sinsga laisage 10 adl (a)" 888008 sesulend famous garmb ,Made TO atna bus VIS Ygoo bas of all bas alamoses Its # to stoidev el anoitaisessa to to to anoiaivoto od) of adi of svig of add sell'l hag to (4) you to and add admissing of on ovail Unde 10 # vd of to ,8001 as (TOVO) GPO 98.139 ICC Form No. 1001 March 1954 INTERSTATE COMMERCE COMMISSION DATE TRANSMITTAL SLIP 8/31/67 To: ROOM Lewis Berry FROM: ROOM James T. Corcoran 2121 THROUGH MAILS AND FILES ACTION AS REQUESTED NOTE AND FILE DRAFT OF SUGGESTED REPLY NOTE AND FORWARD FOR COMMENT NOTE AND RETURN FOR CORRECTION PREPARE REPLY FOR SIGNATURE PREPARE FOR MY SIGNATURE FOR YOUR APPROVAL PREPARE REPLY FOR SIGNATURE OF CHAIRMAN FOR YOUR INFORMATION RECOMMENDATION IMMEDIATE ACTION DESIRED SEE ME INITIALS TAKE APPROPRIATE ACTION COMMENTS: I think you find the enclosed statements very interesting. Joint Rates The Rtes & FORD & LIBRARY 07V835 SERVIS AGRICULTURE & AGRICULTURE DEPARTMENT OF AGRICULTURE WASHINGTON 25, D.C. Transportation Honorable Warren C. Magnuson, Chairman Committee on Commerce United States Senate Dear Mr. Chairman: This will reply to your letter of February 9, 1967, inviting comments on S. 751, a bill "To authorize the Interstate Commerce Commission, after investigation and hearing, to require the establishment of through routes and joint rates between motor common carriers of property, and between such carriers and common carriers by rail, express, and water, and for other purposes." There are gaps in the Commission's authority in this area. The only provisions in the Interstate Commerce Act for through routes and joint rates between motor common carriers of property and between such car- riers and other carriers of property subject to the Act are permissive, not mandatory. The bill would make it the duty of common carriers of property by motor vehicle, by railroad and/or express, and by water, who are subject to the Act, to establis such routes and rates; and would give the Commission jurisdiction over the lawfulness of such rates under other provisions of the Act. The Department favors enactment of this bill. Movement of basic farm commodities by motor is exempt from economic regulation under Section 203(b)(6) of the Act. Movements of bulk commodities by water are exempt from economic regulation pursuant to Section 303(b) of the Act. The bill would not affect farm commodities moving under these exemptions. It would, however, affect the movement by motor and water of manufactured agricultural commodities. In recent years motor common carriers have voluntarily established a great number of joint routes and rates. There is, however, need for establishment of a greater number of joint services, particularly among motor common car- riers. We believe that this bill is harmonious with the National Trans- portation Policy and that authority is needed by the Interstate Commerce Commission to correct possible future inequities in this area. DEPARTMENT INTERTMENT FORD LIBRARY 0.75899 Growth Through Agricultural Progress 20 The Bureau of the Budget advises that there is no chiestion to the Dress entation of this : from the stando 158.07 the program. will reemon Drvil LIBRARY DEPARTMENTO ) DEPARTMENT OF AGRICULTURE WASHINGTON, D.C. 20250 August 2 8 1967 Honorable Warren G. Magnuson Chairman, Committee on Commerce United States Senate Dear Mr. Chairman: This will reply to your letter of May 17, 1967, inviting comments on S. 1768, a bill "To authorize the Interstate Commerce Commission, after investigation and hearing, to require the establishment of through routes and joint rates between motor common carriers of property, and between such carriers and common carriers by rail, express, and water, and for other purposes." The bill would amend section 216(e) of the Interstate Commerce Act to provide criteria by which the Interstate Commerce Commission could prescribe through routes and joint rates. This bill treats the same subject as S. 751, which is presently being considered by your Committee, but in a different manner. The Department recommends that this bill not be enacted. There are gaps in the Commission's authority in this area. The only provisions in the Intorstate Commerce Act for through routes and joint rates between motor common carriers of property and between such carriers and other carriers of property subject to the Act are permissive, not mandatory. While this bill would establish criteria for joint rates, the bill is neither as comprehensive in its treatment of carriers as S. 751 nor does it provide the degree of protection to the public afforded by S. 751. Movement of basic farm commodities by motor is exempt from economic regu- lation under section 203(b)(6) of the Act. Movements of bulk commodities by water are exempt from economic regulation pursuant to section 303(b) of the Act. The bill would not affect farm commodities moving under these exemptions. It could, however, affect the movement of manufactured agri- cultural commodities. While there has been voluntary establishment of some through routes and joint rates, we believe that there is need for statutory authority for the Interstate Commerce Commission to deal with the problems which it has listed as the reasons for the enactment of So 751. We believe that enactment of S. 751, rather than this bill, is in the public interest. LIBRARY 2 The Bureau of the Budget advises that there 1s no objection to the presentation of this report from the standpoint of the Administration's program. Sincerely yours, Orville L. Freeman SECRETARY LIBRARY 9 AUG 1987 OFFICE OF THE SECRETARY. OF TRANSPORTATION WASHINGTON, D.C. 20590 File AUG 28 1967 Honorable Warren G. Magnuson Chairman, Committee on Commerce S1768 United States Senate Washington; D. C. 20510 Dear Mr. Chairman: This .is in reply to your request for the views of this Department concerning S. 1768, a bill "To authorize the Interstate Commerce Commission, after investigation and hearing, to require the establishment of through routes and joint rates between motor common carriers of property, and between such carriers and common carriers by rail, express, and water, and for other purposes." This proposal is similar in many respects to S. 751, a proposal of the Interstate Commerce Commission, which this Department has supported. We note, however, that S. 1768 differs from S. 751 in a number of areas. Since we are in accord with the substance of the rate coordination approach advanced in both bills, we will confine our comments to those areas of S. 1768 which differ from S. 751. (1) Unlike S. 751, S. 1768 imposes no duty on common carriers of property to establish reasonable through routes and joint rates. While S. 751 requires such action from carriers under Part I of the Interstate Commerce Act upon reasonable request, it is our understanding that the Commission has now offered an amendment to require that such a request be made to Part II and Part III carriers. S. 1768, however, imposes no such obligation upon reasonable request or otherwise. (2) A "long-haul" provision prevents the Commission from requiring a carrier to embrace, without its consent, a joint route sub- stantially less than the entire length of its route and of any intermediate carrier which lies between the termini of a proposed through route, unless the inclusion of such lines would result in an unreasonably long through route and unless the through route proposed is needed to provide adequate and more efficient or more economic transportation. Under this concept, reasonable preference would be given to the originating carrier. (3) No through route and joint rate would be established by the Com- mission for the purpose of assisting any carrier to meet its financial needs. 2 (4) No joint rate would be prescribed except, in the absence of an acceptable agreement among participating carriers, upon a finding by the Commission that the rate is adequate to support and sus- tain the joint service. (5) The carriers involved would have to be financially and otherwise fit. (6) In the event of failure by a carrier to pay divisions and inter- line settlements promptly, the Commission would be required to order the prompt settlement of such payments. Upon failure of a carrier to make such payments, the aggrieved carrier would have the right to cancel the joint rate and through route arrangement pursuant to Commission regulations. In other cancellation situa- tions, the burden of proof in cancelling such arrangements would be upon the proposing carrier when the matter is suspended by the Commission for investigation. This Department recognizes that the Supreme Court's very recent action of May 29, 1967, in United States V. Atchison, Topeka & Santa Fe R. Co., sustaining the Commission's approach to railroad "open tariffs" may serve to encourage more intermodal joint rates. At the very least, it will prevent discrimination among carriers by providing that service offered in an open tariff proposal must be made available to all -- shippers and carriers -- similarly situated. At the same time, the Department recognizes that the Commission should also be authorized to require joint rates and through routes where necessary in the public interest. Particularly is such authority needed in the small shipment area where service and rates are shown to be less than satisfactory. The Department, while in accord with the substance and form of S. 751, also is aware that appropriate revisions can be made to meet particular conditions and situations which obtain in the motor carrier industry. In this respect, we recognize the merit in concepts (5) and (6) above which S. 1768 advances; we have no objection to them. We have a number of comments, and in certain instances objections, as to the remaining aspects of this bill. The Department is of the opinion that certain of the proposals mark a substantial and unnecessary change in the principles of economic regula- tion. Most important, in our opinion, is the fact that S. 1768 imposes no duty to provide joint rates and through routes upon reasonable request therefor. Such a holding out is basic to common carrier activity and should rest equally on all modes if true coordinated service is to be effected. With regard to the long-haul provision, while we recognize that similar language obtains in section 15(4) as to railroads, we question whether preservation of such an approach is really conducive to effective joint 3 rate service. Inordinate protection of the long-haul by, for example, a narrow statutory construction of the exceptions to the rule may well result in an effective barrier to needed joint rate service. More- over, we would note that section 15(4) has additional exceptions not contemplated by the long-haul provisions of S. 1768. Section 15(4) permits the prescription of joint rates except as provided in section 3 (the provisions dealing with undue preference and prejudice). and except where one of the carriers is a water carrier. On balance, however, we would have no objection to the "long-haul" provision if an exception for section 3 (section 216(d) in Part II) concepts is included. We see no need, however, to go beyond such action and include further protection for water carriers. Item (3) is consistent with present language in section 15(4). We have no objection to its inclusion subject to the understanding that it would not prevent the Commission from establishing divisions which would finan- cially aid a weaker carrier. Such authority is often a principal element in resolving divisional disputes. It permits the Commission to develop a financially stable industry. Item (4) would, in effect, preclude the Commission from prescribing a joint rate that is not compensatory. However, the Commission has the power to prescribe noncompensatory rates in other situations under existing law. It is not clear why a distinction should be drawn here intermodally or in an intramodal situation involving motor carriers of freight. We would, therefore, favor the omission of the language "is adequate to support and sustain the joint service;" on line 25 of sheet 3. In sum, the Department would favor S. 751, rather than S. 1768. We would have no objection, however, to the amendment of S. 751 by the provisions of concepts (5) and (6), of concept (2) as modified above, and of concept (3) subject to our understanding of its intent. The Bureau of the Budget advises that from the standpoint of the Adminis- tration's program there is no objection to the submission of this report for the consideration of the Committee. Singerely yours, John Assistant L. Secretary Sweeney for Public Affairs Common Carrier Transportation Conference Irregular Route ATA BUILDING 1616 P STREET, N.W. COMMON WASHINGTON, D. C. 20036 CARRIER TELEPHONES 202-387-3200 202-387-2012 NO, VIRGINIA, THERE IS NO SANTA CLAUS The passage of S.752 by the House of Representatives represents the result of a two-year effort to cure a cancerous situation in interstate commerce. The drain of traffic in this area to erstwhile transporters is another symbol of a trend in some areas of policy making toward the deregulation of the motor common carrier industry in the United States. Carried to its total conclusion, a policy of this nature can be the most uneconomical development in transportation this country could experience. The fundamentals of the National Transportation Policy as expressed in the Interstate Commerce Act were never conceived to do anything except bring on the development of our entire economic system to its full potential, not for the benefit of the railroads, the motor carriers of property or persons, nor the barge lines. But rather so that every citizen, every manufacturing establishment, every service industry, could stand in equal opportunity in the movement of goods and persons. To coin a phrase, this is a "gut" situation. Only by support of this policy will there be the continuous, and shall we say, the magical development of American business which brings increasing prosperity to our citizens. Let it be here recorded, however, that the great advances which have been hammered out are so much the result of the work of our leadership, that there results a debt which is difficult to repay. These leaders heat the furnace of performance to a white hot heat which melds our society, and our industry, into the world of opportunity which we must have to achieve the growth so necessary to those elements of superproductivity which all of us instinctively expect future generations. We have become so accustomed to living in a rising productivity, that we sometimes forget that the future lies in an area so advanced from present activity, that we are but little children in our attempts to solve problems which today seem so complex but tomorrow will seem simple by comparison. We repeat - these developments do not just happen. They are the natural results of contributions by those who give more than they get. They do the work that must be done. They solve the problems which must be solved. They give the time which must be given least those things which most of us take for granted, saying unconsciously "Let George do it", go by the wayside. There is no Santa Claus. No, indeed, because if you look cautiously, behind every success you will find someone who performed the duty. Elbert Hubbard said, "Civilization is one long, anxious search" for individuals to carry the message to Garcia. We have a few of them in our industry and we are grateful. Would that we had more. Henry A.S. van Daalen July 16, 1968 AMERICAN TRUCKING CCKING LIBRAR, NINETY-FIRST CONGRESS HARLEY O. STAGGERS, W. VA., CHAIRMAN SAMUEL N. FRIEDEL, MD. WILLIAM L. SPRINGER, ILL. TORBERT H. MACDONALD, MASS. SAMUEL L. DEVINE, OHIO JOHN JARMAN, OKLA. Transportation Congress of the United States ANCHER NELSEN, MINN. JOHN E. MOSS, CALIF. HASTINGS KEITH, MASS. JOHN D. DINGELL, MICH. GLENN CUNNINGHAM, NEBR. PAUL G. ROGERS, FLA. JAMES T. BROYHILL, N.C. LIONEL VAN DEERLIN, CALIF. JAMES HARVEY, MICH. house of Representatives J. J. PICKLE, TEX. ALBERT W. WATSON, S.C. FRED B. ROONEY, PA. TIM LEE CARTER, KY. Committee on Interstate and Foreign Commerce JOHN M. MURPHY, N.Y. G. ROBERT WATKINS, PA. DAVID E. SATTERFIELD III, VA. DONALD G. BROTZMAN, COLO. Room 2125, Rapburn House Office Building DANIEL J. RONAN, ILL. CLARENCE J. BROWN, JR., OHIO BROCK ADAMS, WASH. Mashington, D.C. 20515 DAN kuykendall, TENN. RICHARD L. OTTINGER, N.Y. JOE SKUBITZ, KANS. RAY BLANTON, TENN. FLETCHER THOMPSON, GA. W. S. (BILL) STUCKEY, JR., GA. JAMES F. HASTINGS, N.Y. PETER N. KYROS, MAINE BOB ECKHARDT, TEX. March 5, 1969 ROBERT O. TIERNAN, R.I. RICHARDSON PREYER, N.C. W. E. WILLIAMSON, CLERK Memorandum to: Paul Miltich, Office of Honorable Gerald Ford From: Lewis E. Berry, Minority Counsel Re: Common Carrier Conference Here are a few notes which I hope will help in putting together an appropriate speech. At the present time there are no trucking bills intro- duced, at least the kind that come to this committee. The weight bill is elsewhere. No doubt some old timers will be back, however, for further consideration: 1. The freight forwarder bill died of strangulation last time. Freight forwarders are regulated by Title IV of the Interstate Commerce Act. They are presently allowed to make negotiated contracts with truck lines for hauls up to 450 miles. This means they do not pay the filed tariff but whatever they can get agreement on. The bill would have allowed them to do the same with railroads. At first it looked as though nobody would care much. Then some shipping associations got stirred up and thought they must have similar privileges and wanted the bill so amended. This brought the Trucking Association into the act, and it suggested that the whole scheme be eliminated because it never was so hot for truckers either. So it died. Freight Forwarders are singing the blues and want a new game. 2. The Barge Mixing Rule was a complicated mess which affected all three modes. For years the unregulated barges (those which avoided certification by hauling only exempt bulk products according to the formula which defined bulk products as those so defined by custom in 1939 and carrying no more than three such products in one entire tow--one barge or twenty) had made a practice of turning their barges over to regulated carriers on a separate contract for pushing them to specified points. Then the unregulated fellow picked them up again and delivered them. The ICC said it was GERALD LIBRARY -2- no good. The court agreed. The barges said it would kill them dead. So the bill, S. 1314, was intended to make such arrangements legal. But it went much further and changed the definition on bulk products and vessels so that any three bulk products would be carried on each barge. When truck and tailroads got wind of this the balloon went up and they combined their forces to stop it. By that time it was not possible for the barge folks to backpedal to a safer position. The barge people are around again so the issue will be tested once more no doubt. 3. A bill to require through routes and joint rates was pushed as a help to small shippers. There are many such arrange- ments now but not among truckers--mostly between trucks and railroads. The bill would require such lash-ups. The House didn't give it much consideration, but we may see it again soon. government The bill to take cattle out of the agricultural exemption has not as yet been introduced in the House. Judging from past records it will have a tough time. LEB:bb Enclosures FORD & LIBRARY GERALD