WUNDA WEAVE CARPET Co., Hon. SAMUEL N. FRIEDEL, Chairman, House Subcommittee on Transportation and Aeronautics, DEAR SIR: I would like to commend you for introducing into the House of Representatives, bill H.R. 10831. If this bill is passed it will undoubtedly result in better and more extensive service to thousands of shippers. Freight Forwarders fill a definite gap in our transportation system by basically handling small shipments, consolidating them, and giving shippers prompt service. Many long-haul carriers discourage small shipments by giving poor service and charging excessive rates. Bill H.R. 10831 will authorize freight forwarders and railroads to make contracts, which they should be able to do. Railroads and freight forwarders are complementary to each other and should be allowed to meld their operations and fix charges which reflect the economy of a coordinated operation. If my appearance before a sub-committee hearing would aid the passage of this bill, I woud be more than glad to attend. Thank you again for introducing and supporting bill 10831. BOBBY M. GREEN, Manager of Physical Distribution. WINGARD & COMPANY, INC., Re H.R. 10831, to amend section 409 of part IV of the Interstate Commerce Act, as amended, to authorize contracts between freight forwarders and railroads. Hon. HARLEY O. STAGGERS, Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. STAGGERS: Our firm has been organized and in business since 1903, and we have found that companies like ourselves need and appreciate the type of service given to us by freight forwarders. Their performance and attention to our problems are very vital to us. We purchase supplies and material from a great many parts of the United States in small lot shipments, and sometimes in larger tonnages, and these shipments are moved via both motor carriers and freight forwarders. At the present time, motor carriers are allowed to enter into contracts with railroads to ship their trailers. H.R. 10831 will also allow freight forwarders to ship their trailers with railroads under contract agreements. We need all forms of transport, competing under equal rules. My business keeps me very busy, but if my testimony is needed, kindly advise me, so that I may be absent without inflicting a hardship on my firm, by making suitable arrangements. Representative Brock Adams, 7th District, State of Washington, has also been advised as to our firm's concern on H.R. 10831. Sincerely, Subject: Bill H.R. 10831. Hon. HARLEY O. STAGGERS, A. R. WINGARD, President. THE VINTON CO., Portland, Oreg., January 10, 1968. Chairman, Committee on Interstate and Foreign Commerce, DEAR SIR: We urgently solicit your support of Bill H.R. 10831. It is vitally important, in our opinion, that prompt action be taken and hearings be scheduled. We are a receiver of large volumes of small shipments on which the forwarders have made great advancements in delivering this type of freight promptly. They are an important factor in the success of our business. We believe it is important that the forwarders & railroads be allowed the flexibility of fixing charges and coordinating operations toward economic benefits for all. The forwarder service is basically the only 1.c.1. Rail service left, and we feel that this bill is competitively necessary for the forwarder industry to compete equally with the Motor Freight industry, and also to preserve equality in competition. In your capacity as a member of the Transportation and Aeronautics Subcommittee of the Interstate & Foreign Commerce Committee, we earnestly ask for your maximum support of this Bill. Very truly yours, F. C. CURL, Traffic Manager. ASSOCIATED PRODUCTS, INC., Hon. HARLEY O. STAGGERS, New York, N.Y., January 18, 1968. Chairman, Committee on Interstate and Foreign Commerce, DEAR SIR: We advocate that section 409 (a) of the Interstate Commerce Act be amended to allow freight forwarders to enter into operating contracts with common carriers by railroad. Contracts have been negotiated with the railroads by over-the-road truckers for quite some time. Therefore, this amendment to the existing section of the Interstate Commerce Act would not seem to set a new precedent. However, allowing freight forwarders to negotiate these contracts would be of great benefit to small lot shippers such as 5 Day Laboratories. This is so because these contracts should allow the freight forwarders to obtain the same low rates currently negotiated by over-the-road truckers. This would make for a more competitive situation. It might reasonably enable the freight forwarders to hold shipping rates at the present levels for a period of time or at least prevent any unreasonable rise in these rates. 5 Day Laboratories uses freight forwarders primarily to insure same day movement of small lot shipments to all points of the country. Same day movement is brought about by consolidation of shipments from many shippers and is something the over-the-road truckers very often cannot accomplish especially to certain sections of the country. It would also seem that contracts between freight forwarders and the railroads would be of benefit to the railroads since they could better schedule the movement of their rail cars with regard to shipping by freight forwarders. This should lead to a better coordinated transportation system as a whole. Anything that speeds up delivery of finished goods and helps stabilize shipping costs is imperative to the small lot shipper. In the 4 years that I have been associated with 5 Day Laboratories our shipping costs have increased from 3.6% to 5.0% of net sales while delivery times have increased. A typical 350 pound shipment from Chicago to Los Angeles takes 9 days. This compares against 7 days 3 years ago when the rates were 20% lower. Yours very truly, ROLF KAHN, Vice President, 5 Day Laboratories, Inc. ACME BOOT Co., INC., Clarksville, Tenn., January 5, 1968. Hon. SAMUEL N. FRIEDEL, Chairman, House Subcommittee on Transportation and Aeronautics, DEAR MR. FRIEDEL: This letter is being written to ask your support of the Bill H.R. 10831. My reasons for being in favor of the Bill are: It authorizes freight forwarders and railroads to make contracts, while freight forwarders now must pay rail tariff rates for all service. Rails and forwarders are complementary to each other and should have flexibility to mold their operations and fix changes reflecting economics inherent in a coordinated operation. The bill equalizes opportunity to make contracts with railroads, and the railroads may make joint rates and use rail tariff rates. Forwarders and motor carriers now operate under contracts, and this type of operation has been successful. I further believe that extension of principle to railroads will expand the opportunity for improved forwarder service. Forwarders used extensively by Acme Boot handle basically small lots, which they consolidate, and small shipments are a problem for all carriers. Forwarders help to solve this problem, while railroads have substantially abandoned less-than-carload service, anad the only way an 1.c.l. shipper may obtain rail service is through a freight forwarder. Motor carriers and railroads make contracts under what is known as Plan 1 piggybacking. Additionally, they operate under joint rates, and a recent Supreme Court decision gives motor carriers the right to ship trailers by rail at tariff rates, the same as forwarders pay. This places forwarders at a severe competitive disadvantage with their principal competitors, the long-haul truckmen. The Bill makes for competitive equality, and it will also preserve healthy competition. We need all forms of transport, competing under equal rules. Forwarders are essentially coordinators, and if we improve their ability to deal with railroads on a flexible basis, it will advance coordination. I would be willing to appear in person in Washington to support this. Yours very truly, CHARLES B. SHANKS, NORCREST CHINA CO., Hon. HARLEY O. STAGGERS, Portland, Ore., January 11, 1968. Chairman, Committee on Interstate aand Foreign Commerce, DEAR MR. STAGGERS: Norcrest China Co. would like to go on record in support of bill H.R. 10831. We believe by enacting this bill it will improve forwarders' services and enable forwarders to offer a better, more extensive, trancontinental service to all shippers. For years rails and forwarders have been complementary to each other and they both should have the flexibility to meld their operations and fix charges reflecting economics inherent in a coordinated operation. Transcontinental truck lines already have the right to make contracts with railroads and they also make joint rates with the railroads. For the sake of competition and to equalize opportunity for the forwarders we believe that forwarders should have the same privilege of making contracts and joint rates with the railroads. We are always looking for a better coordination in our transportation system and forwarders are essentially coordinators. Forwarders initially inaugurated transcontinental piggy-back service and by improving their ability to deal with the railroads on a flexible basis will advance that coordination. Yours very truly, WILLIAM S. NAITO, Vice President. ROL-AWAY TRUCK MANUFACTURING CO., INC., Hon. HARLEY O. STAGGERS, Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. STAGGERS: Rol-Away Truck Manufacturing Company, Inc., favors Bill H.R. 10831 because we believe it will improve forwarders' services and enable forwarders to offer a better, more extensive, transcontinental service to shippers. Rails and forwarders are complementary to each other and should have flexibility to meld their operations and fix charges reflecting economics inherent in a coordinated operation. We also believe that this will equalize opportunity. Trucks already have the right to make contracts with railroads and they also may make joint rates and use rail tariff rates. For the sake of competition we believe that forwarders should have the same privilege of making contracts and joint rates with the railroads. The bill should make for better coordination in the transportation system. Forwarders are essentially coordinators. Improving their ability to deal with railroads on a flexible basis will advance coordination. Sincerely yours, MARJORIE M. NELSON, Secretary. Hon. HARLEY O. STAGGERS, WHITE STAG MANUFACTURING CO., Portland, Oreg., January 19, 1968. Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. CHAIRMAN: I personally regret I cannot appear as a witness January 25, 1968, due to current work load requirements, but request my letter of testimony, be accepted and recorded in behalf of HR 10831. My name is John Staudenmaier and am employed by White Stag Mfg. Co., at 5100 S.E. Harney Drive, Portland, Oregon. My capacity with the Company for the past fifteen years, has been Traffic Manager with the responsibility for the movement of raw materials and finished goods involving our five plants, forty sub-contractors, and from our import suppliers. Our Company involves all modes of transportation, and we are concerned with legislation affecting the transportation field, which in turn affects our operations and costs. In 1967 we shipped approximately 500,000 pounds eastbound via freight forwarders, which is a most important segment of our distribution. It is my understanding of bill H.R. 10831, that it will authorize the freight forwarding industry and railroads to make contracts, which equalize the opportunity currently afforded the motor carriers. I am in support of bill H.R. 10831 for the following reasons: 1. The elimination of railroad LCL service availability has been picked up by the freight forwarders, and they need every equal opportunity to maintain and improve their existing services. Freight forwarders are complementary to the railroads, and they should have flexibility to meld their operations and fixed charges reflecting economics inherent in a coordinated operations. 2. Freight forwarders have and currently do operate with motor carriers under contract, and this bill would extend opportunity for improved forwarder service. The bill does not establish a new precedent, but merely extends the principle, and equalizes the opportunity motor carriers already have the right to execute. 3. As a manufacturer, like any other business today, we are constantly battling cost and service requirements of today's buying public. The freight forwarders, as coordinators, have continually worked in our behalf, and improving their ability to deal with the railroads on a flexible basis, will advance their coordination and services to their accounts and country's transportation needs in the LCL shipping field. 4. We need to maintain the existing level of transportation cost, improve existing services, and insure those in the transportation field, who are trying to solve our problems and improve service, are afforded equal opportunity under our transportation rules and regulations. I do feel strongly in behalf of bill H.R. 10831 for the equal opportunities that should be afforded our systems of transportation. Respectfully submitted. JOHN F. STAUDEN MAIER, Jr., Traffic Manager. Hon. HARLEY O. STAGGERS, BARRY & FOLEY MOTOR TRANSPORTATION, INC., Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D.C. DEAR MR. STAGGERS: Acknowledging your letter of January 16, 1968, I certainly appreciate your offer of having me appear as a witness in favor of Bill HR 10831. Unfortunately, sickness among some of our key men, will prevent me from attending the hearings. However, I would appreciate having my statement entered into the proceedings. I am President and Treasurer of the above company, and operate thirty-five vehicles. We urge the passage of this bill, feeling the freight forwarders should have the privilege of negotiating contracts with the railroads, which motor carriers are unable to do. As you know, freight forwarders handle all types of L.C.L. business, and in doing so, serve a great need to industries of all types. Since railroads in recent years have virtually abandoned L.C.L. traffic, I feel this is the most important reason that freight forwarders should not be discriminated against, and should be accorded equal and competitive standing with other interstate common carriers. I firmly believe the passage of this bill would be in the best interests of the shippers, and strongly urge its passage. I hope, and trust, favorable action will be given to this measure. Very truly yours, Hon. HARLEY O. STAGGERS, F. DALTON BARRY, BRITISH INDUSTRIES CORP., Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. STAGGERS: My interest in the passage of this bill rests in the fact that it would be of benefit to my company and the shipping public in general. It is my understanding that this bill provides authorization for freight forwarders and railroads to have contract arrangements. This is a move in the right direction as it would place the forwarders in a competitive position with the motor carriers. This can only eventually work out for the benefit of shippers and carriers alike. Should this bill become law, it will lead to improved forwarder service throughout the Nation, making it possible for the forwarders to expand their services to the shipping public. My position calls for the ability to secure good transportation service for my company's products. Any legislation that will make this possible I support. Off-line forwarder service has been satisfactory through the years as a result of the forwarders and motor carriers having the ability to operate under contract. To extend this procedure to the railroads should, as I stated earlier, make for an enlarged and better line-haul service, by the freight forwarders. I mentioned earlier that the bill would make for a better competition between the forwarders and motor carriers. Passage of the bill would equalize an unbalanced situation and it is bound to work out in the public interest. This testimony is brief but expressed my views on the bill and hope that same will be passed to benefit the public. HAROLD FRIEDLANDER, Traffic Manager. BLOCKSOM & Co., Hon. SAMUEL N. FRIEDEL, Michigan City, Ind., January 18, 1968. Chairman, House Subcommittee on Transportation and Aeronautics, Dear CONGRESSMAN FRIEDEL: As a major manufacturer of cushioning products we are most concerned that Subject Bill HR 10831 be given serious consideration. This bill calls for a mode of transportation i.e. freight forwarder, to have the same competitive position as do other carriers. As is well known, it is most important that we continue to maintain in our economy the basic concepts of our type of government and economic environment. It is only reasonable and just that any mode of transportation be given a fair and equitable competitive position under the laws of the land. We therefore think that the freight forwarders should be allowed to have their true economic rights thru the passage and approval of this Congressional Bill. We, as a manufacturer, ship several hundred thousand dollars in freight cost of product per year. We mainly use railroads, trucks and forwarders. It is most important to us that the freight forwarders be competitive with truck lines and that each be cognizant of this competitive situation. The shipper then does have the opportunity of using one of two modes of transportation that are competing. The railroads have, as you know, for all practical purposes ceased to handle L/C/L movement. The forwarders and the truck lines are the only regular surface common carriers handling L/T/L shipments. Their competing for the traffic is most essential to shippers to help maintain equitable rates. |