Newton, Carl E., special counsel, Boston & Maine Corp., and the New 198 Perlman, Alfred E., president and chief executive officer, New York 140 Redlin, Hon. Rolland, a Representative in Congress from the State of 40 Smith, Emmet J., member, Traffic Advisory Committee, American Smucker, David E., vice president, Pennsylvania Railroad. Ullman, Hon. Al, a Representative in Congress from the State of 61 173 184 Waterman, Jeremiah C., general attorney, Southern Pacific Co....... Webb, Hon. Charles A., Chairman, Interstate Commerce Commission - Wyatt, Hon. Wendell, a Representative in Congress from the State of Additional information submitted for the record by- American Farm Bureau Federation, letter from Matt Triggs, assistant 274 Industry shipments of plywood-All grades, by States (map) - - - Locations of plywood and veneer plants in Western States (map)-- American Short Line Railroad Association: "Budget Planning-Buying Is More Than Paying" (article from 277 Letter from Carroll P. Burks, president- 275 "Southern Pacific Plans a Cut in Freight Rate To Ease Car 275 "What About the Short Lines?" (article from Oct. 4, 1965, issue 276 Equipment data as reported to Car Service Division by class I railroads and railroad owned and controlled private refrigerator Letter from Gen. John J. Lane, commanding officer of the Military Additional information submitted for the record by-Continued Bush, William L., director of transportation, Weyerhaeuser Co., Corby, Phillip M., traffic manager, Evans Grain Co., statement...--- Eaton-Young Lumber Co., telegram from Robert G. Guitteau, vice Elk Lumber Co., Medford, Oreg., telegram from Ted Bauer.. Forest Industries, Inc., Dillard, Oreg., telegram from D. V. Martin, Page 239 268 267 268 Exhibit B.-Plain and equipped boxcar ownership (table).. Freight cars delivered, retired, and ordered, 1964 and 1965 (table)_ Jenkins, Eliot H., general manager, Long-Bell Division, International 282 Boxcar ownership-Class I U.S. railroads, 1945-65 (table). Exhibit A-Freight car ownership-Class I U.S. railroads, 1945- Additional information submitted for the record by-Continued Resolution adopted September 21, 1961. Page 257 270 270 270 National Lumber & Building Material Dealers Association, statement_ Nebraska Grain & Feed Dealers Association, letter from Howard W. Newton, Carl E., special counsel, Boston & Maine and New Haven Effect of any increase of per diem rate (chart). Reproduction cost new in the per diem rate defeats its theoretical objective and impedes replacement of the car fleet (2 charts): Northern Pacific Railway, telegram from Earl F. Requa, vice president 22 Orner, Frederick J., vice president, executive assistant to trustees, of NATIONAL FREIGHT CAR SHORTAGE TUESDAY, OCTOBER 5, 1965 HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Washington, D.C. The committee met at 10 a.m., pursuant to call, in room 2123, Rayburn House Office Building, Hon. Oren Harris (chairman) presiding. The CHAIRMAN. The committee will come to order. Today the committee has scheduled hearings on H.R. 7165, the Senate passed bill 1098, and some 17 or 18 other bills of similar character, having to do with the methods which the Interstate Commerce Commission may use in establishing the amount of the per diem, that is, the daily amount, which railroads pay to another railroad for the use of freight cars. All 19 bills have in common the purpose of attempting by means of the use of the per diem charge to alleviate the inadequacy of the national railroad freight car supply. Increased authority in this field of establishing the per diem charge has been requested by the Commission for many years. To carry out the recommendation, I introduced H.R. 7165, and the distinguished chairman of the Commerce Committee of the Senate, I understand, introduced the same bill, from which was developed the present bill that we have, passed by the other body. These 19 bills fall into three classes. H.R. 7165 and 15 others are identical. H.R. 2230 and H.R. 4407 are the same as these 16 bills, except that they would add, as I understand, an extra section which would limit the authority for a period of 2 years. The Senate passed bill, S. 1098, is the same as the House introduced bill, H.R. 7165, with the addition of certain exceptions which the Commission may make in its promulgation of rules covering per diem in order to take into account certain factors having to do with the so-called deficit ownership railroads; namely, those that receive more cars from connecting carriers than they originate and deliver to their connections. We have many witnesses to be heard. This is a matter that has been before the Congress and the country for many years. There has been a lot of controversy over whether or not adjusting the per diem rate will get more boxcars or freight cars. The purpose here is to get more cars, and keep them rolling. 1 We have observed each year during the harvest season the great demands that have been made upon the railroad industry, and the complaints that come to Congress about the shortage of freight cars. I had not intended to take up this problem this year. Because of the controversy, I had expected, perhaps, that it would go over until next year, when the matter could be gone into at greater length. However, since the Senate committee has worked out a bill, which I have been told should at least be a step in the right direction, and since there is a feeling thoughout the country that the very introduction of these bills would do something about the freight car shortage, and because of the general interest, I decided that even at this late time in the session it would be appropriate and advisable to hold hearings and make a record on the subject. (H.Ř. 2230, H.R. 7165, S. 1098, and agency reports follow:) [H.R. 2230, 89th Cong., 1st sess.] A BILL To amend section 1(14) (a) of the Interstate Commerce Act to insure the adequacy of the national railroad freight car supply, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 1(14) (a) of the Interstate Commerce Act is amended by adding at the end thereof a new sentence reading as follows: "In fixing the compensation to be paid for the use of freight cars, the Commission shall give consideration to the level of freight car ownership and to other factors affecting the adequacy of the national freight car supply and shall, on the basis of such consideration, determine whether compensation should be computed on the basis of elements of ownership expense involved in owning and maintaining freight cars, including a fair return on value (which return shall be fixed at such level as in the Commission's judgment will encourage the acquisition and maintenance of an adequate freight car fleet), or should be computed on the basis of elements reflecting the value of use of freight cars, or upon such other basis or combination of bases as in the Commission's judgment will provide just and reasonable compensation to freight car owners, contribute to sound car service practices, and encourage the acquisition and maintenance of a car supply adequate to meet the needs of commerce and the national defense." SEC. 2. The amendment made by this Act shall be effective only during the two-year period following the effective date of the first orders issued by the Interstate Commerce Commission under the authority of such amendment with respect to compensation to be paid for the use of freight cars. [H. R. 7165, 89th Cong., 1st sess.] A BILL To amend section 1(14) (a) of the Interstate Commerce Act to insure the adequacy of the national railroad freight car supply, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 1(14) (a) of the Interstate Commerce Act is amended by adding at the end thereof the following new sentence: "In fixing the compensation to be paid for the use of freight cars, the Commission shall give consideration to the level of freight car ownership and to other factors affecting the adequacy of the national freight car supply and shall, on the basis of such consideration, determine whether compensation should be computed on the basis of elements of ownership expense involved in owning and maintaining freight cars, including a fair return on value (which return shall be fixed at such level as in the Commission's judgment will encourage the acquisition and maintenance of an adequate freight car fleet), or should be computed on the basis of elements reflecting the value of use of freight cars, or upon such other basis or combination of bases as in the Commission's judgment will provide just and reasonable compensation to freight car owners, contribute to sound car service practices, and encourage the acquisition and maintenance of a car supply adequate to meet the needs of commerce and the national defense." |