International Brotherhood of Teamsters, Chauffers, Warehousemen & Kraft Foods.. Milk Industry Foundation.. National Association of Motor Bus Owners National Association of Railroad and Utilities Commissioners. National Conference of Nonprofit Shipping Associations, Inc.. National Council of Farmer Cooperatives.. National Farmers Union__ National Federation of Grain Cooperatives National Industrial Traffic League. Pacific American Steamship Association.. Private Truck Council of America, Inc.. Transportation Association of America.. United Fresh Fruit and Vegetable Association.... Page 226 194 190 105 125 121 116 250 248 171 251 187 152 222 181 194 232 248 73 251 141 224 Western Rivers Corp.. APPENDIXES Prepared statement of I. Robert J. Corber, counsel, National Association of Motor Bus 255 II. Ronald N. Cobert, general counsel, American Institute for 258 III. Caughey B. Culpepper, president, National Conference of 261 IV. L. E. Galaspie, member, board of directors, Transportation 265 V. L. James Harmanson, Jr., general counsel, National Council 267 VI. J. William Harrell, president, American Institute for Shippers' 271 VII. A. C. Ingersoll, Jr., chairman, executive committee, the Com- 272 281 IX. Edmund D. Osbourne, president, Western Rivers Corp. - 284 285 XI. George H. Seal, chairman, transportation and communication 291 294 XIII. Sidney Zagri, legislative counsel, International Brotherhood Document submitted XIV. "Keep It Legal," pamphlet compiled by the Private Carrier Additional matter submitted.. 297 303 309 INTERSTATE COMMERCE ACT AMENDMENTS MONDAY, MAY 10, 1965 U.S. SENATE, COMMITTEE ON COMMERCE, SUBCOMMITTEE ON SURFACE TRANSPORTATION, Washington, D.C. The subcommittee met, pursuant to notice, at 9:15 a.m, in room 457, Old Senate Office Building, Hon. Frank J. Lausche presiding. Senator LAUSCHE. The meeting will come to order. This is a hearing to be conducted by the Surface Transportation Subcommittee of the Commerce Committee. The hearing will deal with bills identified as S. 1727, S. 1142, S. 1143, S. 1144, S. 1145, S. 1146, S. 1147, S. 1148, S. 1149, S. 1150, S. 1152, S. 1153, S. 1728, S. 1731, S. 1732, S. 1733, and H.R. 5401. The hearings are on 17 bills to amend the Interstate Commerce Act and related acts in order to strengthen and improve our national transportation system. Six of these bills, S. 1727 introduced by Chairman Magnuson and other members of the committee; H.R. 5401; and S. 1728, S. 1731, S. 1732, and S. 1733, introduced at the request of the Interstate Commerce Commission, would amend the Interstate Commerce Act to strengthen enforcement efforts against illegal carriage and to provide for motor carrier and freight forwarder reparations. Illegal truck transportation has been condemned by almost all major shipper and carrier organizations. The ICC on the basis of road checks in 42 States has estimated that illegal hauling could amount to over a half a billion dollars a year. Some experts believe that this total could be even as much as $5 billion a year. These unlawful carrier operations, if they do exist, cause law-abiding shippers to pay more to move their goods. The freight allegedly moved illegally takes revenues from the lawful carriers, causing their rates to be raised to pay fixed operating costs. Furthermore, there is allegedly considerable evidence that illegal motor carriers are more prone to highway accidents than are lawful carriers, be they common, contract, or private. Bills S. 1727, S. 1728, S. 1731, and S. 1733 contain provisions to increase the effectiveness of efforts against illegal carriage wherever it does exist, otherwise these bills would have no impact. They are contemplated solely to deal with illegal operations. It is my understanding that some witnesses may have suggestions as to the wording of specific language in certain sections of S. 1727. It is my hope that we shall have a thorough discussion aimed at establishing the facts and means of improving the enforcement of the law through proper language contained in the bills. NOTE.-Staff counsel assigned to this hearing: Stanton P. Sender. Sections 5 and 6 of S. 1727 and S. 1732 would provide for reparations to those shippers damaged as a result of unreasonable charges on past shipments. It has been pointed out by the Interstate Commerce Commission that there is no reason why shippers should not have the same rights of recovery against motor carriers and freight forwarders as they have against rail and water carriers for violation of the act. The remaining 11 bills are measures recommended by the Commission in its 78th annual report. The Commission's justification of these bills indicates that primarily they are designed to improve Federal regulation of domestic surface transportation by eliminating provisions of present law which are no longer appropriate to the proper performance of the Commission's regulatory functions. The Commission has indicated that such streamlining of regulation will not only improve its overall administrative efficiency but also save carriers considerable time and expense. If there is no objection, I will insert in the record at this point copies of all these bills, ICC recommendations, and the agency reports received on them. (The material referred to follows:) [S. 1727, 89th Cong., 1st sess.] A BILL To provide for strengthening and improving the national transportation system, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, ENFORCEMENT AGREEMENTS WITH STATES ON HIGHWAY TRANSPORTATION That subsection (f) of section 205 of the Interstate Commerce Act (49 U.S.C. 305 (f)) is amended by inserting after the second sentence thereof the following new sentence: "In addition, the Commission is authorized to make cooperative agreements with the various States to enforce the economic and safety laws and regulations of the various States and the United States concerning highway transportation." UNIFORM STATE REGISTRATION OF MOTOR CARRIER CERTIFICATES SEC. 2. Subsection (b) of section 202 of the Interstate Commerce Act (49 U.S.C. 302(b)) is amended by inserting "(1)" immediately after "(b)" and by adding at the end thereof the following: "(2) The requirement by a State that any motor carrier operating in interstate or foreign commerce within the borders of that State register its certificate of public convenience and necessity or permit issued by the Commission shall not constitute an undue burden on interstate commerce provided that such registration is accomplished in accordance with standards, or amendments thereto, determined and officially certified to the Commission by the national organization of the State commissioners, as referred to in section 205 (f) of this Act, and promulgated by the Commission. As so certified, such standards, or amendments thereto, shall be promulgated forthwith by the Commission and shall become effective five years from the date of such promulgation. As used in this paragraph, 'standards or amendments thereto' shall mean specification of forms and procedures required to evidence the lawfulness of interstate operations of a carrier within a State by (a) filing and maintaining current records of the certifi cates and permits issued by the Commission, (b) registering and identifying vehicles as operating under such certificates and permits, (c) filing and maintaining evidence of currently effective insurance, and (d) filing designations of local agents for service of process. Different standards may be determined and promulgated for each of the classes of carriers as differences in their operations may warrant. In determining or amending such standards, the national organization of the State commissions shall consult with the Commission and with representatives of motor carriers subject to State registration requirements. To the extent that any State requirements for registration of motor carrier certificates or permits issued by the Commission impose obligations which are in excess of the standards or amendments thereto promulgated under this paragraph, such excessive requirements shall, on the effective date of such standards, constitute an undue burden on interstate commerce. If the national organization of the State commissions fails to determine and certify to the Commission such standards within eighteen months from the effective date of this paragraph, or if that organization at any time determines to withdraw in their entirety standards previously determined or promulgated, it shall be the duty of the Commission, within one year thereafter, to device and promulgate such standards, and to review from time to time the standards so established and make such amendments thereto as it may deem necessary, in accordance with the foregoing requirements of this paragraph. Nothing in this paragraph shall be construed to deprive the Commission, when there is a reasonable question of interpretation or construction, of its jurisdiction to interpret or construe certificates of public convenience and necessity, or permits, or rules and regulations issued by the Commission, nor to authorize promulgation of standards in conflict with any rule or regulation of the Commission." INCREASED CIVIL PENALTIES SEC. 3. Subsection (h) of section 222 of the Interstate Commerce Act (49 U.S.C. 322 (h)) is amended by striking out the words "shall forfeit to the United States the sum of $100 for each such offense, and, in case of a continuing violation, not to exceed $50 for each additional day during which such failure or refusal shall continue" in the first sentence therein and by inserting in lieu thereof the following: "or who shall fail or refuse to comply with the provisions of section 203 (c) or section 206(a) (1) or section 209 (a) (1); or who shall fail or refuse to comply with any rule, regulation, requirement, or order promulgated by the Commission pursuant to the provisions of section 204(a) (1), 204(a) (2), 204(a) (3), or 204 (a) (3a), shall forfeit to the United States not to exceed $500 for each such offense, and, in case of a continuing violation not to exceed $250 for each additional day during which such failure or refusal shall continue: Provided, however, That nothing in this section shall deprive the Commission of its primary jurisdiction to determine the validity of an operation in dispute under the primary business test." SERVICE OF PROCESS AND CIVIL SUITS FOR ENFORCEMENT OF INTERSTATE COMMERCE ACT SEC. 4. Subsection (b) of section 222 of the Interstate Commerce Act (49 U.S.C. 322(b)) is amended to read as follows: “(b) (1) If any motor carrier or broker operates in violation of any provision of this part, or any lawful rule, regulation, requirement, or order promulgated by the Commission, or of any term or condition of any certificate or permit, the Commission or its duly authorized agent may apply for the enforcement thereof to the district court of the United States for any district where such motor carrier or broker operates. In any proceeding instituted under the provisions of this subsection, any person, or persons, acting in concert or participating with such carrier or broker in the commission of such violation may, without regard to his or their residence, be included, in addition to the motor carrier or broker, or a party, or parties, to the proceeding. The court shall have jurisdiction to enforce obedience to any such provision of this part, or of such rule, regulation, requirement, order, term, or condition by a writ of injunction or by other process, mandatory or otherwise, restraining such carrier or broker, his or its officers, agents, employees, and representatives, and such other person, or persons, acting in concert or participating with such carrier or broker, from further violation of such provision of this part, or of such rule, regulation, requirement, order, term, or condition and enjoining upon it or them obedience thereto. Process in such proceedings may be served upon such motor carrier, or broker, or upon such person, or persons, acting in concert or participating therewith in the commission of such violation, without regard to the territorial limits of the district or of the State in which the proceeding is instituted. "(2) If any person (not including a motor carrier holding a certificate, permit, or grant of temporary authority issued by the Commission under the provisions of section 206, 207, 208, 209, or 210a of this part) operates in clear and patent violation of any provisions of section 203 (a), 206, 209, or 211 of this part, or any |