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Executive Association), I feel that the rails would benefit by an additional volume of movement.
Mr. FRIEDEL. Thank you. Are there any questions, Mr. Adams?
Mr. FRIEDEL. Mr. Ålvin M. Feinman, distribution director, Oxford
OXFORD INDUSTRIES, INC., ATLANTA, GA. Mr. FEINMAN. Thank you, Mr. Chairman.
I would like to enter my statement for the record and highlight certain points.
Mr. FRIEDEL. Mr. Feinman, your full statement will be included in the record.
Mr. FEINMAN. My name is Alvin Feinman. I am employed by Osford Industries as distribution direction on the corporate staff level. Oxford is a manufacturing concern operating 34 manufacturing facilities the majority of which are in small, out-of-the-way locations
Primarily in the southeast section of the United States. Oxford's net annual sales for the fiscal year 1967 was in excess of $116 million.
I was trying to indicate in the first paragraph that Oxford is a big shipper of small shipments.
The experience that Oxford has had in transportation needs is that the freight forwarder has provided constant and consistent service of the nature that Oxford requires. We are very much interested in the passage of this bill because we feel that only through equality of arranging and competing for cost and service with motor carriers can freight forwarders continue to provide the service at the same cost.
Further the transportation costs are spiraling alarmingly and the passage
of this bill would tend to hold the line on these rates. (Mr. Feinman's prepared statement follows:) STATEMENT OF ALVIN M. FEINMAN, DISTRIBUTION DIRECTOR,
OXFORD INDUSTRIES, INC., ATLANTA, GA. Oxford Industries, Inc., of Atlanta, Ga., is a manufacturer of both men's and women's clothing, operating thirty-four manufacturing facilities located primarily in the southeastern section of the United States. Oxford's net annual sales for the fiscal year 1967 was in excess of $116,000,000.
We are very much interested in the House bill H.R. 10831 as freight forwarders and motor carriers need competing equality in cost and services. For the force to achieve this, it is imperative that the rail lines and the forwarders be capable of making contracts such as is presently authorized in the Act for the motor carriers.
Further, the ability to make such contracts with the rail lines would enhance better coordination of service for the public good. Freight forwarders consistently handle and service all types of traffic and do not have the tendency to restrici because of geographical problems, bulky nature of traffic, etc. This is not the case with the rail lines and motor carriers.
We have personally utilized services of freight forwarders for many years and found them consistently dependable. The passage of this bill can only further such service for our organization and the public at large.
Further, transportation costs are spiraling alarmingly and the passage of this bill will tend to hold the line on rates. In view of the monetary hedge, these contracts can develop with the railroads.
Mr. FRIEDEL. I want to thank you. I have no questions. Are there any questions, Mr. Adams?
Mr. Adams. No questions.
Mr. FRIEDEL. Gentlemen, we have nine more witnesses. If they want to include their statements for the record now we can do it without coming back this afternoon.
Mr. J. A. Johnson, president of the Harpeth Freight Lines, Inc., Franklin, Tenn. Is he here? Would you like to have your statement included in the record?
STATEMENT OF J. A. JOHNSON, PRESIDENT, HARPETH FREIGHT
LINES, INC., FRANKLIN, TENN. Mr. Johnson. Yes, and I have one little supplement to add to it. Mr. FRIEDEL. Go ahead.
Mr. Johnson. I am J. A. Johnson, president of Harpeth Freight Lines, a small common carrier at Franklin, Tenn. Being a small carrier we cannot be selective but we are much hurt by loss of traffic to private carriers. Our shippers complain constantly over the excess delays to their traffic and are continually diverting traffic to private carriers.
Our connecting carriers at Nashville are selective. Most have two line limits and this causes congestion and additional expense and delay to the small carrier. The freight forwarders in many instances offer the only relief for such congestion.
For this reason I naturally am in support of anything that will help the small carrier; that is all, sir.
(Mr. Johnson's prepared statement follows:)
STATEMENT OF J. A. JOHNSON, PRESIDENT, HARPETH FREIGHT LINES, INO.,
FRANKLIN, TENN. I am very much in favor of seeing H.R. 10831 passed and enacted as it will be in strict conformity with the national transportation policy, and allow the best service between the various forms of transportation,
We do a considerable volume of business with the forwarders and our experience with them has been that they have a consistent tendency to provide satisfactory service covering all kinds of traffic without restrictions, which is beneficial to the shipping public, from whom we derive a living.
In many instances in the past we have encountered restrictions on both service and commodities from other forms of transportation.
Therefore, I would like to see the forwarders in the best possible position to handle our traffic by keeping their costs at a minimum, which I believe this bill will provide, and for this reason want them to stay as healthy as possible.
Mr. FRIEDEL. Thank you. Are there any questions, Mr. Adams?
STATEMENT OF HARRY T. DEVINE, MAGLA PRODUCTS, INC.,
NEWARK, N.J. Mr. DEVINE. Mr. Chairman, I have a prepared statement, previously submitted, that I would request be included in the record in its entirety.
Mr. FRIEDEL. It may be included in the record.
Mr. DEVINE. One brief statement I would like to make is the fact that we, too, are faced with the light and bulky article situation much along the same lines as outlined by Mr. Cloer of Reeves Bros.
We have found that in particular the trucklines find this traffic to be undesirable in many instances and are driving the rate upward at an ever-increasing rate. We feel that our only alternative is the freight forwarder services which we have always found to be adequate and to our satisfaction.
We therefore would like to support H.R. 10831.
Magla Products has manufacturing facilities in Huntersville, N.C., Cornelius, N.C., Warsaw, Ind., and warehousing facilities in Los Angeles, Calif.
During the period from January 1 through December 31, 1967, we shipped 5,442,859 pounds of freight out of our Huntersville and Cornelius plants. Of this total outbound tonnage, 1,091,433 pounds moved via freight forwarder.
We are manufacturers of ironing board pad and cover sets, ironing board covers, pot holders, and various other finished textile items. We also produce a line of household sponges. More than ninety percent of our shipments are in the one hundred to one thousand pound weight bracket.
Since the freight forwarders handle primarily small lots which they consolidate, we feel that we would be offered a more flexible service under the proposed amendment to section 409 of the act.
I would like to point out that the freight forwarders actively solicit this type of traffic, while the rail carriers have virtually eliminated the less carload service. The only rail service available to shippers of 1.c.l. lots such as ourselves, is that provided through the freight forwarders.
The trucking industry has for some time been authorized to negotiate contracts, and further make use of what is known as plan 1, piggyback service. This plan allows the motor carrier to move his containers via railroad service with the traffic moving under the regular motor carrier tariffs. The motor carriers are also allowed to utilize plan 5, piggyback service in which they establish joint through rates with the railroads. It is apparent that the motor carriers may participate in all of the piggyback plans, whether constructed on the basis of joint rates, or rates published in open ta riffs; while the freight forwarders are limited to the open tariff plans.
Since the freight forwarders prime competition is the long haul trucker, I feel that the above situation is putting the freight forwarders at a competitive disadvantage.
We feel that approval of this bill would be consistent with the national transportation policy, as stated in the Act, and that by putting the freight forwarders in a more competitive position with the long haul truckers, we would be able to more freely move our products in interstate commerce.
We appreciate your allowing us this opportunity to present our views on the bill now being considered.
Mr. FRIEDEL. Thank you. Do you have any questions, Mr. Adams? Mr. ADAMS. I have no questions.
Mr. FRIEDEL. Mr. William J. Thrasher, traffic manager, Walker Manufacturing Co., Aberdeen, Miss.
Mr. FRIEDEL. Mr. Andrew Fiduccia, general traffic manager, OverNite Motor Service, Inc., Rockford, Ill.
STATEMENT OF ANDREW FIDUCCIA, GENERAL TRAFFIC MANAGER,
OVER-NITE MOTOR SERVICE, INC., ROCKFORD, ILL.
Mr. FiducciA. Mr. Chairman, I have a brief statement I would like to submit for the record. I want to enter one comment.
Mr. FRIEDEL. You may proceed.
Mr. FIDUCCIA. I heard a statement here that the carrier, short-line carrier or trucking company, is an agent for a carloading company. I don't agree. We are participating carriers with the carloading company the same as we are with trucklines. Joint rates are published, divisions of rates are published. I feel that that word "agents should not be part of our statement.
(Mr. Fiduccia's prepared statement follows:)
STATEMENT OF ANDREW FIDUCCIA, GENERAL TRAFFIC MANAGER, OVER-NITE MOTOR
SERVICE, INC., ROCKFORD, ILL. Gentlemen, my name is Andrew Fiduccia and I am the general traffic manager of the Over-Nite Motor Service, Inc., 3600 West State Street, Rockford, Ill.
My company's position in this matter is in support of the freight forwarding industry because :
The bulk of our tonnage is between Freeport, Rockford, and Chicago. Our Authority to operate is under 1.C.C.-M.C. 109611. We serve as a feeder line on freight where origin or delivery is required to off line points. Contracts with carloading carriers affords us to be competitive to long haul motor carriers.
The failure to pass this bill will put our company in a restricted area for handling freight, and allow long haul motor carriers to establish service and rates of their own choosing because of no competition.
Shippers and consignees need the service rendered by carloading companies on through service and rates which are established thru present contracts with short line carriers. Passage of H.R. 10831 will help carloading company to be competitive on future transportation.
Thank you very much, gentlemen, for allowing me to testify before your committee.
Mr. FRIEDEL. Do you have any questions, Mr. Adams?
Mr. R. E. Liverett, traffic manager, Beacon Manufacturing Co., Swannanoa, N.C.
Mr. FRIEDEL. Mr. Joe Ratto, president, F. J. Burns Draying, San Francisco, Calif.
Mr. FRIEDEL. Mr. R. J. Stewart, president, Trans-Postal Systems, Inc., New York.
Mr. Stewart has left his statement for the record. (The statement referred to follows:)
STATEMENT OF R. J. STEWART, PRESIDENT, TRANS-POSTAL SYSTEMS, Inc.,
NEW YORK, N.Y.
Honorable sirs, I am R. J. Stewart, president of Trans-Postal Systems, Inc., maintaining our main office and plant at 014 West 28th Street, New York, N.Y. Our prime business is to provide a service to various sized companies and organizations throughout the United States consisting of the preparation and collating as well as distribution of various types of advertising matter and samples throughout the United States and in foreign countries.
In presenting this complete service to the shipping public, we include in our price the cost of transportation. We have in the past, and plan to continue in the future, the use of all modes of transportation subject to the Interstate Commerce Act as well as air freight service.
We are vitally concerned with the continued rising cost of transportation to the shipping public as well as ourselves, and honestly feel that passage of H.R. 10831 would materially assist in stemming the continual rising spiral of transportation charges.
Our shipments are basically of the L.C.L. and L.T.L. nature weighing an average of less than 1,000 pounds each. From years of experience we have found that the only dependable and comparatively inexpensive method of shipping is freight forwarder service. Railroads of this great Nation, have restricted to a great extent the handling of our type shipments so that we can not favor them. The motor carrier industry both long-haul and short-haul have discouraged us from using their service to a great extent only because of the service rendered from our place of business to destination cities. They are reluctant to provide adequate service on small shipments. We therefore have found the use of freight forwarder to be a definite answer to our distribution problem.
This bill, H.R. 10831, permitting the forwarders subject to part IV of the Interstate Commerce Act to negotiate and enter into contract arrangement with the railroads would permit them to receive equal treatment with the motor carriers who are now permitted to do this, as well as create a healthy competitive situation all to the benefit of the shipping public.
We feel also that passage of this bill would tend to restrict the rising line-haul cost for the freight forwarders, as well as possibly reducing some of these costs so that at least if these savings are not passed on to the shipping public in their entirety, the leveling off of costs would prevent the possibility of further rising freight charges.
The principle ontlined in this bill is not new since it is permitted in piggyback plans 1 and 5 between motor carriers and railroads, and between freight forwarders and motor carriers for pickup and delivery services. I firmly support the intent and wording of this proposed legislation to permit the freight forwarders more flexibility to coordinate their operations for a better service. I urge you to consider this bill favorably.
Thank you for permitting me these few minutes of your time to express my opinion.
Mr. FRIEDEL. Mr. Joseph A. Illes, director of transportation, Outboard Marine Corp., Waukegan, Ill.
Mr. FRIEDEL. Mr. E. A. Bolick, vice president, Threads, Inc., Gastonia, N.C.
Mr. Bolick has submitted his statement for the record. (The statement referred to follows:)
STATEMENT OF E. A. BOLICK, VICE PRESIDENT, THREADS-INC., GASTONIA, N.C. Our testimony is in support of H.R. 10831.
Threads Inc. manufactures cotton and synthetic sewing thread for industrial uses. We are the second largest manufacturer of this nature in the United States. We ship our products to every State in the Union. Approximately 1,000,000 pounds of sewing thread is marketed in the western coastal States annually.
Since practically all of the railroads have discontinued handling less-carload traffic we are restricted to freight forwarders and motor trucks to transport our products to the west coast area.
Due to the nature of our finished products and the marketing pattern we must use, all of our shipments to the western States move via freight forwarders. We have been receiving good, dependable and consistent service over a number of years. A consistent service is of great value to us in properly serving our customers. This service must be under a level of rates consistent with the service rendered.
This bill would authorize freight forwarders and railroads to enter into and make contracts. This would not set any new precedents as forwarders and motor carriers now and always have operated under contracts.
This would provide for equality in competition. The forwarders and motor carriers should be allowed to compete under equal rules. This would allow more