ment where possible into the highly restricted areas and trip lease to motor carriers for return loads in an effort to maintain a minimum uniformity of our freight costs.

Into these highly restricted areas it would appear that these privatecarrier trucks available for trip leasing to common carriers, in order to perform a through expedited service, would be an asset to the motor carriers, shippers, and receivers as a whole; and I feel sure these trucks available for leasing to motor carriers would help toward eventually establishing a more reasonable uniform system of rates by the direct hauling of interline traffic.

We are vitally interested in holding our distributing costs to a minimum and utilization by motor carriers of our equipment for trip leasing on the return loads affords maximum use of such equipment and, in many cases, this equipment is highly desirable by the carriers where there is excess tonnage to be moved. I do not see how the motor carriers could maintain a vast surplus of equipment to meet these peakload demands as the equipment would stand idle until another peak period arises. A high surplus of extra equipment for peak periods and the problem of license fees and registration over the Nation would be a problem, and obviously the results would be increased rates.

Our truck operation is closely supervised with respect to maintenance, safety, and other State and Federal regulations. We are proud of our low accident ratio and all concerned are carefully screened with the average length of employment now in excess of 9 years.

We participate in and support all movements for better highway operation, and the use of one of our units by a motor common carrier would be as safe as the carrier's own equipment and drivers. The minimum 30-day-lease rule will greatly curtail the economics of our operation, while at the same time our equipment must remain on the highways. Therefore, it doesn't appear that this rule will accomplish any good purpose other than add to the highways many thousands of additional trucks to comply with a regulation.

We urge favorable consideration of your committee with regard to this legislation, as we feel no law should be passed depriving a person of control of his property.

Senator SMATHERS. Are there any questions, Senator Purtell?
Senator PURTELL. No questions.

Senator SMATHERS. Thank you very much, Mr. Perry.

Now I would like to place in the record at this point a letter from the Arctic Express, Inc., addressed to me and dated June 10, 1955; and a letter from the California Grape and Tree Fruit League, also addressed to me, dated June 3, 1955; also a telegram from Paul H. Miller, chief inspector, Arkansas State Plant Board and member of the National Association of Commissioners, Secretaries, and Directors of Agriculture; and another letter from the National Milk Producers Federation dated June 17, 1955; and a letter from the Northwest Horticultural Council dated June 13, 1955, addressed to Senator Magnuson; and a letter addressed to me dated June 13, 1955, from the Northwest Horticultural Council of Yakima, Wash., with an attached statement.

(The above-mentioned documents are as follows:)

Hon. GEORGE SMATHERS,

ARCTIC EXPRESS, INC., Tampa, Fla., June 10, 1955.

United States Senator from Florida, Washington, D. C. DEAR SENATOR SMATHERS: I am writing to you at the request of Mr. A. Donald Fielding in regard to the trip leasing about which you had written him.

We find ourselves in the position of having to trip lease on numerous occasions inasmuch as we do not have the equipment available at the point of loading. Deadheading equipment across to these loading points is very expensive and makes the operation unprofitable which is the reason for the trip lease. Of course, quite a bit of our trip leasing is on other common carriers' equipment which is an assistance to them as they would have the deadhead mileage if they were not hauling our loads.

We are, of course, a small carrier compared to many of the others in refrigerated hauling but our records for this year indicate the number of trip leases as compared to our total loads per month:

You can readily see that approximately 40 percent of our total volume is handled by trip-leased equipment and, without this, we would not be able to operate at a profit.

In the event we can be of any further assistance, please do not hesitate to call on us.

Very sincerely yours,

C. N. ALEXANDER, Vice President.

CALIFORNIA GRAPE AND TREE FRUIT LEAGUE,
San Francisco, 3, June 3, 1955.

Re S. 898, trip-leasing bill.

Hon. GEORGE A. SMATHERS,

Chairman, Subcommittee on Surface Transportation,
Senate Committee on Interstate and Foreign Commerce,
Senate Office Building, Washington 25, D. C.

DEAR SENATOR: We are advised that hearing on this bill will be held on Monday, June 20, 1955, before your subcommittee. The enactment of S. 898 is of paramount importance to the fresh deciduous tree fruit and grape industry of California, and this letter is for the purpose of presenting to you for your consideration the facts upon which we base our plea for favorable action by your committee and the Senate.

The California Grape and Tree Fruit League is a voluntary nonprofit organization, having a membership of over 250 growers and shippers of fresh deciduous tree fruits and grapes produced in the State of California and marketed in all of the States of the Union and in many foreign countries.

The average annual production of such commodities moving interstate is in excess of 45,000 carlot equivalents. According to reports of the Federal-State Market News Service there was so moved during 1954 a total of 47,294 carloads, of which number 38,976 cars moved in rail and express service and 8,318 carlot equivalents by motortrucks, almost entirely by agricultural exempt haulers. The importance of these exempt haulers to our industry can best be shown by the rapid expansion of this mode of transportation. For the year 1946 there were only 1,411 carlots moved by truck. In 1952 there was a total of 7,350 carlots so moved, and in 1954 there were 8,318 carlots moved interstate. The overall

movement by trucks of perishables including citrus, vegetables and melons, from California to interstate destinations for 1953 was 60,890 carlots. Figures for 1954 are not available, however it is indicated that the report when complete will show a further material increase in tonnage so handled.

The remarkable increase in the volume of truck traffic is due to the advantages of the services rendered by the exempt haulers; the availability of equipment during periods of freight and railway express reefer shortages; the rapidity of their schedules which are equal to and sometimes faster than express; their careful handling in transit and good condition of the fruit when delivered at destination; their ability to pick up shipments wherever the demand may exist, often at points not possible of being served directly by railroads or by certificated motor carriers; and the fact there are no limitations placed on the route of travel or destination of shipment.

Transportation advantages offered by agricultural exempt haulers have made it possible to supply many markets which are not on the line of travel of the rail lines or the certificated motor common carriers, with adequate supplies of these essential foods, in excellent condition and at reasonable costs. They are free to make as many stops for partial unloading in transit as may be needed, thereby enabling a wider distribution of these commodities. These conditions have encouraged growers to increase their plantings and production, there having been created a greater sales outlet than was ever before possible.

The provision of the order of the Interstate Commerce Commission in Er parte MC-43, Lease and Interchange of Vehicles by Motor Carriers, regulating leasing practices by requiring that all leases shall be for a period of not less than 30 days, would in effect put the exempt haulers out of business. If they are not to be permitted to make trip-leases of equipment they would be compelled to make their charges so high as to destroy their usefulness as neither shippers nor receivers could pay the rates necessary to be assessed by reason of having to return empty.

The purpose of all regulations should be to serve the public interest. The public interest will best be served by serving the interests of all shippers and receivers of perishable agricultural products in the safe regular movement of their goods at the lowest possible rates. S. 898, if enacted, will insure the availability of a transportation system which has become indispensable to an orderly and unrestricted distribution of adequate supplies of these essential foods. We will appreciate having the above statement included in your report. Sincerely, J. A. MONTGOMERY, Traffic Consultant.

LITTLE ROCK, ARK., June 16, 1955.

Senator GEORGE A. SMATHERS,

Chairman, Subcommittee, Senate Committee on Interstate and Foreign Commerce, Washington, D. C.:

Senator Smathers, please place me on record as favoring S. 898, which would provide for trip leasing of exempt motor carriers transporting agricultural products. Wish also to endorse statement of transportation committee of National Association of Commissioners of Agriculture, which will be presented on June 21, by J. Roy Jones, commissioner of agriculture for South Carolina.

PAUL H. MILLER,

Chief Inspector, Arkansas State Plant Board, and Member, National Association of Commissioners, Secretaries, and Directors of Agriculture.

NATIONAL MILK PRODUCERS FEDERATION,
Washington, D. C., June 17, 1955.

Hon. GEORGE A. SMATHERS,

Chairman, Surface Transportation Subcommittee of the Senate Committee on Interstate and Foreign Commerce, Washington, D. C.

DEAR SENATOR SMATHERS: The issue of trip leasing is before the Congress again. A bill S. 898, introduced by yourself and Senator Monroney on this issue, contains the identical provisions of a bill passed by the House of Representatives in the previous Congress but which failed to get action by the Senate Committee on Interstate and Foreign Commerce.

The National Milk Producers Federation last year on behalf of its nearly onehalf million dairy farmer members supported the proposed legislation. Our position today remains unchanged, and we wholeheartedly support the provisions of S. 898.

Our views on this issue are well known. They have been presented to the Congress on previous occasions. Little can be added to what we have already said. Therefore, instead of consuming valuable time of the subcommittee in a restatement of our previous testimony, we shall confine our present statement to this brief communication.

We stand united with all of the other national farm organizations in supporting the provisions of S. 898.

We, as representatives of dairy farmers, have a special stake in this issue. Under administrative rulings, dairy products such as butter, cheese, and nonfat dry milk solids are not considered agricultural commodities. Therefore, the action of the Interstate Commerce Commission granting an exemption from the 30-day lease requirement in the case of the transportation of agricultural commodities, is of no benefit to us. It is, therefore, imperative that we have the protection provided for in the bill S. 898 so that the long-established right of trip leasing may be available to all trucks which transport our dairy porducts to market.

We respectfully urge favorable action on the bill S. 898.

We will appreciate it if this communication will be incorporated in the official record of the hearings.

Very sincerely yours,

E. M. NORTON, Secretary.

NORTHWEST HORTICULTURAL COUNCIL,
Yakima, Wash., June 13, 1955.

Hon. WARREN G. MAGNUSON,

United States Senate, Washington, D. C.

DEAR SENATOR MAGNUSON: The effective date of the ICC order prohibiting trip leasing has been postponed until the Congress has an opportunity to act on this legislation. A similar bill (H. R. 3203) was passed by the House at the last session, but time did not permit its consideration by the Senate.

Enclosed herewith is copy of my statement on S. 898, the trip-lease bill. Any assistance you can render in support of this bill and bringing it onto the floor for hearing will be appreciated.

Sincerely yours,

ERNEST FALK, Manager.

NORTHWEST HORTICULTURAL COUNCIL,

Yakima, Wash., June 13, 1955.

Hon. GEORGE A. SMATHERS,

Chairman, Subcommittee on Surface Transportation,

Senate Office Building, Washington, D. C.

DEAR SENATOR SMATHERS: Enclosed herewith please find 25 copies of Ernest Falk's statement in connection with the Surface Transportation Subcommittee hearing on S. 898, scheduled to begin on June 20.

We request that the statement be incorporated into the record.

Sincerely yours,

ERNEST FALK, Manager.

STATEMENT OF ERNEST FALK, NORTHWEST HORTICULTURAL COUNCIL, IN SUPPORT

OF S. 898

I am the manager of the Northwest Horticultural Council, with offices at 1002 Larson Building, Yakima, Wash. The council is composed of the following organizations of fruit growers and shippers in Washington and Oregon: Washington State Apple Commission, Winter Pear Control Committee, Hood River Traffic Association, Rogue River Valley Traffic Association, Wenatchee Valley Traffic Association, and Yakima Valley Traffic Association.

The member traffic associations are composed of growers and shippers of deciduous fruits, in their respective areas, who annually ship in excess of 45,000 cars (rail-car equivalent) of apples, pears, peaches, apricots, prunes, and cherries to market for fresh consumption. This includes practically 100 percent of the apples and in excess of 90 percent of other deciduous fruits grown commercially in the 2 States.

We use both rail and motor carriers to move our produce. Some shipments are best suited to movement by rail. Motor carriers have inherent advantages for others. A third segment can move by either rail or motor carrier, depending on circumstances at the time. The railroads and the certified common and contract motor carriers combined do not have adequate equipment available at all times to move our fruit and we must rely on and extensively use so-called agriculturally exempt motortrucks. Even with all existing facilities we, in a normal crop season, encounter periods of car shortages. If part of the presently available equipment is denied to us, a critical situation could develop.

More than one-fourth of our fruit is shipped by motor carriers. Table 1, hereto attached, shows the movement of apples from the Yakima and Wenatchee districts since 1942. This table shows a steady increase in the volume of apples shipped by truck and also an increase in the percentage of the crop moved by truck. During the last 2 seasons about 27 percent of the Wenatchee and Yakima apples have been shipped by truck. This season about 35 percent of Hood River apples moved by truck. Our other fruits similarly are shipped by both rail and truck.

In excess of 75 percent of our motor-carrier shipments are handled by trucks exclusively agriculturally exempt. A large portion of the balance is handled by trucks designated as agriculturally exempt for the trip. All of these figures refer to shipments from the district, not to haul to the packing plants from the orchards. An analysis of the destinations of the Yakima truck shipments showed that more than two-thirds were to destinations in excess of 1,000 miles.

The importance of this legislation to permit continued full utilization of the agricultural exemption will be covered by other witnesses, including Durward Seals, of the United Fresh Fruit & Vegetable Association. We, and our members, are members of that association and concur in his statement. I will not duplicate his material but want to point out how and why trip leasing as presently practiced is important to us.

Continuation of the present supply of agriculturally exempt trucks is essential to our fruit industry. Not only are other facilities grossly inadequate at certain seasons and times, but the agriculturally exempt carriers provide flexibility of route and of delivery, which are of tremendous importance to shippers. They make possible split shipments to several receivers in neighboring communities which may not be served by 1 railroad or by 1 certificated motor carrier. This permits delivery without transshipment or rehandling, thereby assuring more prompt delivery of the fruit in better condition. It also makes possible split shipments to several receivers in the same community with savings of time, effort, and expense. These partial unloads increase our outlets, for many markets cannot economically handle a full truckload or railroad carlot. This flexibility of route also protects the shipper where a truckload may be rejected by the receiver on arrival. If the shipper can forward the fruit to any market, without reloading and without restriction as to route, he is not at the mercy of the buyer. This results in fewer rejections by buyers and reduces the loss to the grower when a shipment is rejected.

The proposed Interstate Commerce Commission order requiring leases to be for a minimum period of 30 days would prohibit trip leasing, and, unless it is stayed by the passage of S. 898, the supply of agriculturally exempt trucks will be seriously reduced. This would result in an even greater shortage of transportation equipment and consequent loss or deterioration of perishable fruits and vegetables which cannot be indefinitely stored but must be immediately moved to market. Inadequate transportation facilities would entail heavy financial losses on growers and would result in higher prices to consumers.

To assure growers and shippers of continuing adequate, satisfactory, efficient, and economical service, we urge passage of S. 898, so that the supply of agriculturally exempt carriers will continue undiminished. These agriculturally exempt carriers serve a purpose and fill a need which is not now and cannot be filled as satisfactorily by any other means. The flexibility of distribution, the minimizing of handling and rehandling, resulting in less bruising of the fruit, the saving of transit time, which assures better condition on delivery, all react to the benefit of growers, shippers, and the consumers.