Question 2. As indicated in my first question, Section 204 of the Rail Act of 1980 prohibits the railroads from imposing further rate increases on recyclables where the rates involved are already producing revenues for the railroads which exceed their costs by 46 percent-a very sizeable margin. As a member (or Chairman) of the Commission, what actions will you take to assure that further rate increases are not imposed on recyclables in violation of Section 204?

Answer. I am advised that the Commission's staff has adopted a policy of carefully questioning every railroad rate increase filing which would impact recyclables. It is my intention to see that this policy is continued in keeping with the Congressional mandate contained in Section 204 of the Staggers Rail Act of 1980. Moreover, I would hope concerned shippers will avail themselves of the opportunity to protest railroad rate increase filings which affect recyclables, and I will certainly see that such protests are carefully reviewed by the Commission's staff.

Question 3. Finally, it has often been said that, in past cases, the Commission has stubbornly refused to adhere to statutory provisions restricting rates and rate increases on recyclables because the Commission's staff, which concentrates on the railroads' needs, has simply failed and refused to become educated regarding the critical natural resource and energy needs of the United States as we move toward the end of the Twentieth Century. As a member (or Chairman) of the Commission, what steps will you take to assure that the Commission itself and its staff recognize how urgent it is for the United States to promote maximum industrial recycling of critical resources, as well as maximum industrial conservation through the utilization of recyclable materials that conserve energy, reduce air and water pollution and reduce the United States' reliance on critical raw materials imported from abroad?

Answer. I intend to circulate, for review by the Commission and its staff, the printed record of my confirmation proceeding, and when this is done, I will ask that particular attention be paid to this question and answer so that there will be a continuing awareness of how urgent it is for the United States to promote maximum industrial recycling of critical resources.

STATEMENT OF SOUTHERN TRAFFIC LEAGUE, INC.

My name is William P. Jackson, Jr., and I am Executive Secretary of The Southern Traffic League, Inc. (STL), a trade association composed primarily of shippers and receivers of goods that are interested in transportation matters within the Southeast. Carriers are not permitted membership in STL. STL maintains its executive offices at 3426 North Washington Boulevard, Arlington, Virginia. STL was incorporated in Georgia in 1918 but is actually older than that, having taken over the affairs of an unincorporated association. However, our historical records do not go beyond 1918. I became Executive Secretary of STL on November 1, 1970.

STL at its last regular general membership meeting, held in Arlington, Va., on May 9, 1981, directed me as its Executive Secretary to testify in support of the nomination of Reese H. Taylor, Jr., to a term as Commissioner of the ICC.

STL has been active for many decades in transportation matters before the Interstate Commerce Commission (ICC), as well as before the courts and before other regulatory agencies, in order to accomplish STL's goals and objectives. These are stated generally in the Articles of Incorporation:

"The object of this League shall be to promote adequate and proper transportation for Southern industries at reasonable and equitable charges, and to this end provide effective means whereby Southern industries and their traffic representatives may interchange information and ideas concerning traffic and transportation matters, including, but not so limited, transportation facilities, service, regulation, practices and charges; by concerted action in the interest of Southern industries and the general public to cooperate with Federal and State regulatory bodies and transportation companies to carry out such object; to promote and obtain modification of laws, rules and regulations that may interfere with, impede or obstruct such object, and to promote cordial relations between Southern industries and the carriers; to keep the public informed with respect to and stimulate public interest in transportation matters; to promote standards and professionally recognize qualifications of industry traffic representatives. All actions of this League shall be confined to transportation matters of general interest to Southern industries."

STL represents, directly as well as indirectly, thousands of shippers within the Southeast. Attached hereto as Appendix A is a list of companies or organizations presently represented in STL. Those organizations which are themselves organizations of shippers are indicated by an asterisk, and they have from approximately 20 to approximately 900 members each.

Attached as Appendix B is a list of past presidents of STL. The first President of STL, Marion M. Caskie, later served as a Commissioner of the ICC in 1935-40. Another STL member, J. Haden Alldredge, served as a member of the ICC from 1939 until 1955. Rupert L. Murphy, President of STL in 1949-50, served as a member and sometimes chairman of the ICC from 1955 until 1978. Thus, it can be seen that STL has provided from its ranks a considerable amount of leadership in the area of regulatory affairs over approximately the last half century.

As a shipper organization, STL is vitally concerned with the makeup of the ICC. In making appointments to the ICC, the past administration took the unfortunate tack of practically disqualifying any person with decent credentials in surface transportation for that reason alone. While a number of individuals that appeared to be highly qualified in their particular major fields of endeavor were appointed to the ICC, not one of them had any significant hands-on experience in either surface transportation or its regulations, at least none which was publicized, prior to their appointment to the ICC. It is, therefore, indeed heartening to see the current administration trending in the opposite direction. In the nomination currently under consideration, it is clear that the credentials and experience of Reese H. Taylor, Jr., make him the first person with any real prior experience in surface transportation matters that has been nominated for an initial appointment to the ICC in somewhat over a decade. As an aside, the new ethics law appears to be a substantial barrier to attracting highly qualified individuals to government service. It ought to be changed immediately to eliminate unattractiveness of service on a regulatory body such as the ICC.

STL is concerned about certain doctrinaire approaches that have been taken by the ICC in the last several years regarding, for example, rail abandonments. It is exceedingly difficult to understand how the ICC could grant every rail abandonment application that became administratively final since January 1, 1980, without exception. It seems that an attempt was made to rationalize and back into justification for these rail abandonments, and in some cases to change the standards in the middle of the case. It is not to be denied that many abandonment applications are meritorious, and should be granted. However, it is more than passing strange when 100 percent of the applications are granted. Based upon data I have seen compiled by a representative of a transportation labor union, such appears to be the case. I have pending a Freedom of Information Act request with the ICC to confirm this, but so far have not received a response. However, based upon my daily review of ICC orders, I cannot think of a single case since January 1, 1980, involving a railroad abandonment that has been finally denied by the ICC, unless it is one of the several that has been remanded recently to the ICC after judicial review. A fair and impartial arbiter, acting within the dictates of Congressional intent, is needed for the solution of many of the problems that vex surface transportation interests, including shippers and carriers. It is naive in the extreme to believe that the marketplace can fairly work out solutions to all such problems, and it is heartening to see the Congress give new instructions to the ICC regarding the standards it should use in approaching the solution of transportation problems. However, it is just as disheartening to see the ICC disregard and dishonor Congressional guidelines in a rather cavalier fashion, as has clearly been done on many occasions in the recent past. It is hoped that, with a chairman who is also an able attorney, the law will be better followed.

In addition to the matters of rail abandonments and rates of all kinds, STL is also concerned about transportation to small rural points. It is indeed heartening to note that Mr. Taylor has expressed many of the same concerns. Many members of STL believe that airline deregulation has been a complete disaster, certainly insofar as service to small points is concerned. They are equally concerned about destructive competition developing in the motor carrier arena, with the concomitant lessening of service to smaller rural points. Accordingly, striking a better balance between competition and regulation in the motor carrier area is certainly a laudable goal, and we applaud the even-handed approach suggested by Mr. Taylor.

Of paramount importance is preservation of the common carrier obligation. Without it, many of the ancient evils that were sought to be remedied by the Interstate Commerce Act, such as discrimination and the charging of unjust and unreasonable rates, will again inevitably occur. At least one railroad is now publicly claiming that it is not a common carrier any more to the extent that it is carrying exempt traffic. It is indeed necessary to preserve a common carrier system; for without it, the economic dislocation which will occur in this country could be staggering.

STL does not necessarily agree with every position put forth by Mr. Taylor in his responses to questions promulgated by this committee, both of which have been reviewed. However, STL is heartened by the spirit of his replies and the fairness which is inherent in his approach to the issue.

Acting Chairman Alexis has announced his resignation, effective July 1, 1981. Commissioner Trantum has announced his resignation, effective July 31, 1981. It is therefore essential that Mr. Taylor's nomination be promptly confirmed by the Senate. On behalf of STL I respectfully request the Senate and this committee to expedite the confirmation process to the maximum extent possible. Mr. Taylor is exceptionally well qualified, and he should make an outstanding Commissioner and Chairman.

[APPENDIX A]

THE SOUTHERN TRAFFIC LEAGUE, INC.-MEMBERS

AFG Industries, Inc.; Allison-Erwin Co.; American Cast Iron Pipe Co.; American Enka Company; American Thread Co., Inc.; Amstar Corporation; Atlantic Steel Co.; Bigelow-Sanford, Inc.; The William L. Bonnell Co., Inc.; Bristol-Myers Company; Burlington Industries, Inc.; Cannon Mills Company; The Cato Corporation; Celanese Fibers Company; The Central Foundry Company; Chattanooga Freight Bureau, Inc.; Chemical Products Corp.; Coats & Clark, Inc.; Coca-Cola USA: and Collins & Aikman Corporation.

Cone Mills Corp.; Container Corporation of America; Continental Group-Woodlands & Building Products Division; Dickinson, Mikell & Comar, Inc.; Distribution Services, Inc.; Dr. Pepper Company; Ecusta Paper & Film Group-Olin Corporation; Fieldcrest Mills, Inc.; Fleetguard, Inc.; Flexible Tubing Division-Automation Industries, Inc.; L. B. Foster Company; General Electric Company; Genesco, Inc.-Footwear Sector; Georgia Freight Bureau, Inc.*; Georgia Ports Authority; Gold Kist, Inc.; W. R. Grace & Co.; Graniteville Company; Greater Miami Traffic Association Growers and Shippers League of Florida*; Guilford Mills, Inc.; Hanes CorporationKnitwear Division; International Forwarders, Inc.; Joanna Western Mills Co.; and Kingsport Press.

Kraft, Inc.; M. Lowenstein Corporation; McGaw Laboratories; Michelin Tire Corporation; Milliken and Company; Mississippi State Port Authority; Nationwide Traffic Service Bureau, Inc.; New Orleans Traffic and Transportation Bureau*; Nissan Motor Manufacturing Corp., U.S.A.; Northern Electric Co.; Oxford Chemicals, Inc.; Oxford Industries, Inc.; L. A. Parish, Inc.; Phillips Fibers Corp.; Pomona Products Company; Reichhold Chemicals, Inc.; Reynolds Metals Company; R. J. Reynolds Tobacco Company; Riegel Textile Corp; Royal Crown Cola Co.; The C. F. Sauer Company; Savannah Foods & Industries, Inc.; Shuford Mills, Inc.; South Atlantic, Inc.; South Carolina State Ports Authority.

Springs Mills, Inc.; Stokely-Van Camp, Inc.; Superior Cable Corporation; Tampa Port Authority; Tarcon, Inc.; Tennessee Eastman Co.; Texize Chemicals Company; Textile Traffic Association*; Ti-Caro, Inc.; Tom's Foods; Traffic Services Corp.; Univeristy of Arkansas; Veteran Rate Auditors, Inc.; Virginia Port Authority; Vulcan Materials Co.; Jim Walter Paper, Inc.; Weaver Traffic Department*; West PointPepperell, Inc.; and Wix Corporation.

[APPENDIX B]

PAST PRESIDENTS

*Marion M. Caskie, Montgomery, Alabama, 1918-1919; Walter E. Gardner, Jacksonville, Florida, 1919-1920; *Charles S. Hopkins, Tampa, Florida, 1920-1921; *J. T. Ryan, High Point, North Carolina, 1921-1923; *T. H. Henderson, Nashville, Tennessee, 1923-1924; William C. Ermon, New Orleans, Louisiana, 1924-1925; W. S. Creighton, Charlotte, North Carolina, 1925-1931; *Thomas J. Burke, Charleston, South Carolina, 1931-1933; W. L. Thornton, Jr., Winston-Salem, North Carolina, 1933-1938; *Joseph H. Donnell, Tampa, Florida, 1938-1939; W. A. Gunn, Nashville, Tennessee, 1939-1942; E. DeL. Wood, Chattanooga, Tennessee, 1942-1943; O. H. Weaver, Sr., Griffin, Georgia, 1943-1945; *J. T. Hiers, Wilmington, North Carolina, 1945-1946; P. H. Johansen, Washington, D.C., 1946-1947; *T. C. Maurer, Jacksonville, Florida, 1947-1948; C. E. Walker, Columbus, Georgia, 1948-1949; R. L. Murphy, Atlanta, Georgia, 1949-1950; L. A. Schwartz, New Orleans, Louisiana, 1950-1951; *N. B. Correll, Winston-Salem, North Carolina, 1951-1952; *A. H. Lathrop, Enka, North Carolina, 1952-1953; B. H. Overton, St. Petersburg, Florida, 1953-1954; D. S. Andress, Dallas, Texas, 1954-1955; L. O. Kimberly, Jr., Atlanta, Georgia, 1955-56; and A. W. Evans, Savannah, Georgia, 1956-57.

*C. L. Denk, Jr., Atlanta, Georgia, 1957-58; L. E. Galaspie, Richmond, Virginia, 1958-1959; W. L. Murph, Jr., Kannapolis, North Carolina, 1959-1960; *C. B. Culpep

*Deceased.

per, Atlanta, Georgia, 1960-1961; Roland A. Smith, Miami, Florida, 1961-1962; E. C. Ash, Mobile, Alabama, 1962-1963; Paul P. Watkins, Atlanta, Georgia, 19631964; Bates B. Bowers, Savannah, Georgia, 1964-1965; B. R. Bland, Spartanburg, South Carolina, 1965-1966; E. A. Bolick, Gastonia, North Carolina, 1966-1967; *August Heist, Winston-Salem, North Carolina, 1967-1968; J. C. Wilcox, Bradenton, Florida, 1968-1969; *William M. Maddox, Washington, D.C., 1969-1970; Jack Bethea, Lancaster, South Carolina, 1970-1971; J. Fleetwood Moore, Savannah, Georgia, 1971; Peter C. Gratale, Greensboro, North Carolina, 1971-1972; Ross Prater, Atlanta, Georgia, 1972-1973; Herman Granberry, West Point, Georgia, 1973-1974; George Bell, Duncan, South Carolina, 1974-1975; Otis H. Weaver, Jr., Griffin, Georgia, 1975-1976; W. P. Hartis, Jr., Spartanburg, South Carolina, 1976-1977; M. C. Ellis, Chattanooga, Tennessee, 1977-1978; James M. Jones, Jr., Atlanta, Georgia, 19781979; E. H. Millard, Jr., Savannah, Georgia, 1979-1980; and Ray Norris, Hendersonville, North Carolina, 1980-1981.

STATEMENT OF EASTERN INDUSTRIAL TRAFFIC LEAGUE, INC.

My name is William P. Jackson, Jr., and I am Executive Secretary of the Eastern Industrial Traffic League, Inc. (EITL), which has its offices at 3426 North Washington Boulevard, Arlington, Va. EITL was formed in 1950 as the result of a merger of two older shipper organizations. EITL is composed primarily of members representing shippers and receivers of freight in the New England and Middle Atlantic states. A list of member companies is attached as Appendix A. I have been Executive Secretary of the organization since 1978.

EITL is active before the Interstate Commerce Commission (ICC), the courts and various other regulatory agencies in order to protect and promote the interests of shippers and receivers of freight in order to protect and promote the interests of shippers and receivers of freight in the Northeast. At its last annual membership meeting in Philadelphia, Pa., on May 7-8, 1981, I was directed, as its Executive Secretary, to testify in support of the nomination of Reese H. Taylor, Jr. to a position as Commissioner on the ICC.

EITL has investigated the qualifications of Mr. Taylor, and considers him to be exceptionally well qualified for the position to which he has been nominated by the President. As a lawyer and as former Chairman of the Nevada Public Service Commission, Mr. Taylor has the necessary qualifications and experience to become an outstanding Chairman of the ICC.

EITL is concerned that there should be a proper balancing of the competing interests in surface transportation, on the basis of guidelines mandated by the Congress. After reading the questions given to him by this committee, and his responses thereto, EITL is impressed with his sense of direction and fairness. Therefore, EITL respectfully requests this committee to approve the nomination as promptly as possible, in view of the attrition taking place at the Commission, so that the functions of the Interstate Commerce Commission may be properly performed.

[APPENDIX A]

EASTERN INDUSTRIAL TRAFFIC LEAGUE, INC.-MEMBERS

Alcan Metals; Altus Freight Traffic Service, Inc.; AMP, Incorporated; American Hoechst Corporation; American Home Foods Division of American Home Products Corp.; American Home Products Corp.; American Olean Tile Co.; American Pad & Paper Co.; American Standard, Inc.; Armstrong World Industries, Inc.; Atlas Traffic Consultants Corp.; Ben Franklin Division-City Products Corporation; Bic Pen Corporation; Bird & Son, Inc.; and Bristol-Myers Products.

Burnham Corporation; C-E Industrial Products Group Div. Combustion Engineering, Inc.; Carter Wallace, Inc.; Charter Oak Shippers Cooperative Association, Inc.; Chicopee; Consolidated Cigar Company; Davol, Inc.; DCA Food Industries, Inc.; Delaware River Port Authority; Denenholz & Janer, Inc.; Charles Donley and Associates; Dresser Industries, Petroleum Equipment Div.; Edgcomb Metals Company; Emhart Corporation Machinery Division (USM Corp.); Ensign-Bickford; Environtech; Exquisite Form Industries, Inc.; Fitchburg Paper, Division Litton Industries, Inc.; R.T. French Company; General Dynamics Corporation-Electric Boat Division; Gestetner Corp.; Gilbert & Bennett Mfg. Co.; Gillette Company; P.H. Glatfelter Co.; and The Grand Union Co.

G.T.E. Products Corp.; Hershey Chocolate Company; Hollingsworth & Vose Co.; E.F. Houghton & Company; International Playtex, Inc.; Kendall Company; Kraft, Inc.; Lever Brothers Company; Life Savers, Inc.; Thomas J. Lipton, Inc.; M&M/ Mars; Marcal Paper Mills; Massachusetts Port Authority; Merck & Co., Inc.; Na

bisco, Inc.; New Britain Machine Div. of Litton Industries; Okonite Company; Old Colony Envelope Company; Paper Manufacturers Co.; Personal Products Co.; Peter Paul Cadbury, Inc.; Port Authority of New York & New Jersey; Progress Lighting Company, Inc.; Purex Corp.; and Raybestos Friction Materials Co.

Raytheon Company; Rochester Area Chamber of Commerce, Inc.; Scott Paper Company; Sears, Roebuck and Company; Select Magazines, Inc.; Spalding Division of Questor; Sperry New Holland Div. Sperry Corp.; Sprague Electric Co.; Stanley Home Products, Inc.; Sterling Drug, Inc.; Sucrest Corp.; Traffic Service Bureau, Inc.; Transportation Bureau of Baltimore, Inc.; Triangle PWC, Inc.; Triangle Publications, Inc.; TRW Greenfield Tap & Die Division TRW, Inc.; Universal Cyclops Specialty Steel Division; Virginia Dare Extract Co.; Virginia Port Authority; Wasco Products, Inc.; J.B. Williams Company, Inc.; and Wiremold Company.

Senator Bов PACKWOOD,

LAWRENCE-MAYFLOWER,

LAWRENCE MOVING & STORAGE CO.,
Sacramento, Calif,, May 27, 1981.

Chairman, Senate Committee on Commerce, Science and Transportation,
U.S. Senate, Washington, D.C.

Dear SENATOR PACKWOOD: I wish to express my enthusiastic support for the appointment of Reese H. Taylor, Jr. as a member of the Interstate Commerce Commission.

We operate a separate partnership in the state of Nevada under this same name, and in that capacity have experienced the administration of Mr. Taylor while he was a member of the Nevada Public Service Commission. We sincerely feel that Mr. Taylor represented the best interest of the citizens of Nevada as far as his handling of the moving and storage industry was concerned. While it appears that the current trend is away from regulation of the moving and storage industry, we feel that the Interstate Commerce Commission will be around for many years to come. It is only with men and women of the caliber of Reese Taylor that effective, fair, and intelligent administration of such an agency can be handled successfully. We strongly urge your support of this appointment.

Most sincerely,

DAVID MACAULAY, Vice President.

[Whereupon, at 10:35 a.m., the hearing was adjourned.]