Should the forwarders not be allowed to have the same opportunity as the truck lines have in establishing cost and rates, they could very possibly go out of existence. The forwarders must be in a competitive position to give service and rates or they lose their economic position in transportation. Our company recognizes the high value of the forwarders to us and to our economy, so we strongly urge the passage of Congressional Bill H.R. 10831. Sincerely, J. E. DEVEREAUX, Traffic Manager. Hon. HARLEY O. STAGGERS, DEERING MILLIKEN, INC., Spartanburg, S.C., January 18, 1968. Chairman, Committee on Interstate and Foreign Commerce, DEAR CONGRESSMAN STAGGERS: My name is B. R. Bland and I am General Traffic Manager of Deering Milliken, Incorporated, Spartanburg, South Carolina. I was scheduled to appear before this Subcommittee on H. R. 10831 on January 23. 1968. Prior commitments on a hearing in Atlanta will prevent my personal appearance. Please record this written statement into the record. My company is a manufacturer and finisher of textiles and related products. Our 43 plants ship to all states and use every conceivable mode of transportation. The instant bill H. R. 10831 is of importance to us because we believe that freight forwarders and motor carriers should be treated equally regarding contracts with railroads. It would appear that this bill is within the framework of the National Transportation policy and is unquestionably in the public interest. We have seen an evolution of picking and choosing in the motor carrier and railroad industries. The railroads will not handle LCL traffic, and the motor carriers will handle LTL traffic if it suits them to do so. We are experiencing extreme difficulties in serving our markets because of these conditions. On the other hand, the freight forwarders existence is built around small shipments and we have never had a shipment refused that they were authorized to handle, whether it was bulky, desirable, or undesirable. The protestants in this case do not want a lot of this traffic, but neither do they want anyone else to have an advantage in hauling it. We presently ship approximately 250 thousand pounds monthly by all freight forwarders to Transcontinental Territory, and any endeavor on their part to improve their service, lower their costs, and protect the movement of my products receives our complete support. We trust it will receive yours. Respectfully, Hon. HARLEY O. STAGGERS, B. R. BLAND, General Traffic Manager. WARNER-CHILCOTT LABORATORIES, Committee on Interstate and Foreign Commerce, DEAR CONGRESSMAN STAGGERS: I wish to go on record at hearings scheduled to begin January 23, 1968, in favor of the subject bill, because I believe that its enactment would be in the public interest and in line with the National Transportation Policy. I have been engaged in the industrial traffic field for many years and recently have become very much concerned with the small shipment problem that has escalated to an alarming degree as the railroads have substantially abandoned less than carload service. I believe that the passage of this bill is necessary to maintain the Freight Forwarders Industry in a healthy competitive position with ability to provide many small lot shippers with the only practical access to railroad service. A recent Supreme Court decision gave motor carriers the right to ship trailer loads by rail at tariff rates the same as forwarders pay. This places the forwarders at a severe competitive disadvantage with the long haul truckmen. Therefore, amendment to the I.C.C. Act is needed to maintain the forwarders competitive position. We need all modes of transport competing under reasonably equal rules and regulations. Therefore, I urge the subject bill be recommended favorably. Very truly yours, C. P. LESLIE, Traffic Supervisor. THE STAR PIN Co., Shelton, Conn., January 15, 1968. Congressman JOHN MONAGAN, House Office Building, Washington, D.C. DEAR CONGRESSMAN MONAGAN: In reference to House Bill H.R. 10831 dealing with amendments to the Interstate Commerce Act, we are opposed to this bill in its present form. For many years we have been served very ably by shippers cooperative association which has done much to reduce our costs of shipping and increased our service to customers across the country. As a small company, we need the service of a shippers association for they have done a great deal for us that the regular freight forwarders have not been willing to do. Unless H.R. 10831 is amended so as to extend the same benefits to shippers cooperative association as to the freight forwarders, with whom they compete, we feel that the proposed law would provide an unfair competitive edge to the freight forwarders. If it is the wisdom of Congress to reduce railroad charges we would like to have the Cooperatives included in the benefits. Sincerely, Hon. HARLEY O. STAGGERS, ROBERT P. PORTER, Treasurer. HOLMAN TRANSFER Co., Portland, Oreg., January 25, 1968. Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. CHAIRMAN: My name is Leonard P. Clark and I am employed by Holman Transfer Company located at 49 S. E. Clay Street, Portland, Oregon. My capacity with the company is Vice President and Secretary-Treasurer. I would like to submit testimony in support of House Resolution 10831. Together with H. M. Clark, Sr., my brother and I own and operate Holman Transfer Company in Portland, Oregon. With its greatest investment in its public warehouse buildings, Holman operates eight warehouses in Portland with a total space of approximately 800.000 square feet and Holman operates 370,000 square feet of space on a contract warehouce basis in the Seattle-Tacoma area in the State of Washington. These building are public warehouses (with the exception of our contract arrangements in Washington) designed to accommodate merchandise for storage and distribution to the Pacific Northwest. A few years ago we calculated rail car unloadings in excess of 8,000 cars per year-the current figure would be in excess of this. Total revenue from these warehousing operations in 1967 was $2,450,000.00 We therefore are much concerned with legislation affecting the transportation and distribution industry. In addition, Holman operates a fleet of over 100 pieces of motor truck equipment throughout the State of Oregon, producing total revenue in 1967 of $1,000,000.00, of which amount about 20% consisted of hauling for freight forwarders. We are therefore acquainted first-hand with the services performed by forwarders and at the same time, as motor common carriers ourselves, we have knowledge of that mode of transportation as well. H.R. 10831, as I understand it, is a bill to amend Section 409 of Part IV of the Interstate Commerce Act, as amended, to authorize contracts between freight forwarders and railroads. I am in favor of H.R. 10831 for the following reasons: 1. The bill equalizes opportunities.-Motor carriers already have the right to make contracts with the railroads, and they also may make joint rates and use rail tariff rates, but forwarders must pay rail tariff rates for all service. Since the forwarders specialize in consolidating shipments and the railroad discourage this type of traffic, it follows that the forwarders are performing a service complementary to the railroads and should have the flexibility to integrate their operations and fix charges reflecting economics inherent in a coordinated operation. 2. This bill does not establish any new precedent.-Freight forwarders presently operate under contract with motor carriers and have been doing so for year. This bill would simply extend this principle to railroads. 3. This bill should be of benefit to small lot shippers.-We who work in the transportation industry know that small lot shipments are a problem for all carriers and we further know the forwarders have helped to solve the problem. The railroads have, to a great extent, abandoned LCL service and the only avenue open to an LCL shipper to obtain rail service is through a freight forwarder. 4. The forwarders are performing a vital service basic to our entire transportation system in America. If they are not granted equal opportunity with motor carriers the ultimate result will handicap their ability to serve the public. This bill will improve the forwarders' service. I do not feel that freight forwarders should be granted privileges above and beyond those of their competitors but I do feel strongly they should be given equal opportunity along with motor carriers in their negotiations with the railroads. Respectfully submitted. LEONARD P. CLARK, (Whereupon, at 12:05 p.m., the subcommittee adjourned.) о |