S. 3690. CONTENTS Page 1 Anderson, Stephen, vice president and director of traffic, Motor Cargo, Brandon, D. M., general manager, Transway, Inc., New Orleans, La............. Ernst, L. E., general manager, National Star Route Mail Carriers Asso- Fraley, Orrin, vice president, Consolidated Freightways, Inc., Menlo Park, Lawrence, John V., managing director, American Trucking Associations, Ristow, L. H., chairman, committee on mail transportation by bus, Na- tional Association of Motor Bus Operators, and vice president in charge Siedle, E. George, Assistant Postmaster General.. Warburton, Hon. Herbert B., General Counsel; accompanied by E. George Siedle, Assistant Postmaster General; and Adam G. Wenchel, Assistant General Counsel, Post Office Department.. Wilson, James E., general counsel, National Trailways Bus System..- Brand, Herbert B., director, railway mail transportation division, Asso- ciation of American Railroads, Washington, D. C.: Letter dated July Ernst, L. E., general manager, National Star Route Mail Carriers Asso- ciation, Washington, D. C.: Letter, dated July 31, 1958, to Senator Hill, Arthur M., president, National Association of Motor Bus Operators, Knipe, Robert R., Oregon Trucking Association, Portland, Oreg.: Neu- Koehler, A. W., secretary-manager, National Association of Motor Bus Operators, Washington, D. C.: Letter, dated July 28, 1958, to Senator Lawrence, John V., managing director, American Trucking Associations, Inc., Washington, D. Č.: Letter, dated August 6, 1958, to Senator Manlowe, John, president, United Truck Lines, Inc., Spokane, Wash.: 57 Nagle, Paul A., president, National Postal Transport Association, Wash- Sessions, Edson O., Acting Postmaster General: Letter, dated July 15, Warburton, Herbert B., General Counsel, Post Office Department: Letter, dated August 8, 1958, to Senator Church, containing supplemental 54 Analysis of S. 3960 of the Post Office Department.... Suggested amendments and justification by National Trailways Bus System to S. 3960 (appendixes A and B).. Suggested change to section 2 of S. 3960 by National Association of Motor Supplemental explanation of Post Office Department of the provisions of TRUCKING OF MAIL WEDNESDAY, JULY 30, 1958 UNITED STATES SENATE, COMMITTEE ON POST OFFICE AND CIVIL SERVICE, Washington, D. C. The subcommittee met, pursuant to notice, at 10:40 a. m. in room 135, Senate Office Building, Hon. Frank Church (chairman of the subcommittee) presiding. Present: Senators Church and Jordan. Also present: H. W. Brawley, executive director; J. Don Kerlin assistant staff director; and Frank A. Paschal, staff member. Senator CHURCH. This hearing of the Post Office Subcommittee will come to order. This is a public hearing this morning on S. 3960, which is a bill that has the purpose of authorizing the Postmaster General to provide for the transportation of mail, and for services in connection therewith by motor vehicle carriers, the general purpose being to give to the Postmaster General the same or comparable authority to enter into contracts and agreements with motor vehicle carriers in connection with the hauling of mail that the Postmaster General is now authorized to enter into with railroad companies and airlines. At this point of the record I will order printed S. 3960. [S. 3960, 85th Cong., 2d sess.] A BILL To authorize the Postmaster General to provide for the transportation of mail, and for services in connection therewith by motor vehicle carriers Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as "The Motor Vehicle Carrier Mail Act of 1958". SEC. 2. As used in this Act: (a) "Commission" means the Interstate Commerce Commission of the United States. (b) "Mail" means United States mail of any class, and foreign mails in transit across the territory of the United States, and equipment and supplies of the Post Office Department. (c) Except for the purposes of section 13, "Carrier" shall mean any person, firm, partnership, association, or corporation which holds a certificate of public convenience and necessity from the Commission, or from a regulatory body of a State, Territory, or possession of the United States, for the transportation of general commodities by motor vehicles on public highways in intrastate, interstate, or foreign commerce for compensation over regular routes, except an express company to the extent it is subject to part I of the Interstate Commerce Act. (d) "Mail transportation" includes services and the use of facilities in conjunction with the transportation of mail. SEC. 3. For the purposes of this Act, mail transportation is declared to be transportation in interstate commerce. All carriers, as defined in section 2, are subject to the provisions of this Act with respect to mail transportation. 1 SEC. 4. The Postmaster General is hereby authorized to provide mail transportation without advertising for bids, or under contract, with carriers in accordance wtih applicable statements of service provided for in section 5. SEC. 5. The Postmaster General shall file with the Commission, and publish in the Federal Register, within ninety days after the enactment of this Act, an initial statement or statements of services for the utilization of carriers for mail transportation and may thereafter file such additional statements of services as he deems necessary or advisable. Each statement of services shall set forth the Postmaster General's requirements, including the preferment, if any, which carriers shall afford, for mail transportation, and shall state in detail the kinds and types of services which will be required of carriers, including the use of terminals, terminal work space, pickup and delivery service, interchange of equipment, consolidated services, and over-the-road or linehaul services; the manner and conditions in and under which such transportation shall be performed, and services in connection therewith, the units of service upon which compensation shall be based, the rates of compensation he deems to be fair and reasonable for the services required, and such other information which may be pertinent and material to mail transportation and the establishment of rates therefor. The Postmaster General may include in the statements of services a requirement that each carrier affected by the statements shall furnish to the Postmaster General information as to the facilities of the carrier, the points for which the carrier has been certificated, and the points on through routes where the carrier has established through routes with other common carriers, either by motor vehicle, or by rail, express, air, or on water, and such other pertinent and material information as may be required by the Postmaster General. SEC. 6. (a) When requested by the Postmaster General, every carrier shall perform mail transportation in the manner, under the conditions, and with the services prescribed in accordance with applicable statement of services. (b) Any carrrier may apply to the Postmaster General for relief from the requirements of this section by reason of unusual conditions which impose undue hardship upon it. The Postmaster General may grant or deny such application in whole or in part on consideration of the needs of the Postal Service and the conditions of hardship imposed upon the carrier. SEC. 7. It shall be unlawful for any carrier to fail or refuse to perform the services, or furnish the information, set forth in the applicable statement of services unless such failure is caused by unavoidable accident, or other circumstances beyond the control of the carrier. For refusal to perform service, the Postmaster General may impose a penalty not in excess of 3 times the compensation applying to the transportation with respect to which the violation occurred. For all other violations the Postmaster General may impose a penalty not in excess of $1,000 or the reasonable value of any mail matter lost, destroyed, or damaged, whichever is the greater. The Postmaster General may remit the whole or any part of any penalty. SEC. 8. (a) In the performance of its functions under this Act, the Commission shall be vested with all the powers, not inconsistent with this Act, which it is authorized to exercise under Part II of the Interstate Commerce Act in the determination of rates, fares, and charges. (b) In any proceeding under this Act the Commission shall hold hearings to the same extent as provided by law for other hearings between carriers and shippers. SEC. 9. (a) Upon the filing of statements of services by the Postmaster General the Commission shall give public notice thereof. Any carrier directly affected, within fifteen days of such notice of any initial statement of services. and within forty-five days of such notice of any subsequent statement of services, may file with the Commission what it believes to be fair and reasonable rates for the services. The Commission shall determine the fair and reasonable rates for such services, shall become effective from the date of publication of the statement of services. The rates shall remain in force until changed in accordance with this Act. (b) For the purpose of determining rates under this Act, the Commission is authorized to make reasonable classifications of carriers and where just and equitable fix rates applicable to all carriers in the same classification. SEC. 10. At any time after six months from the entry of an order of the Commission fixing fair and reasonable rates, any carrier directly affected may apply to the Commission for a redetermination of the rates applicable to the required services. The Commission shall give public notice of not less than thirty nor more than sixty days of such application. The Postmaster General or any carrier directly affected by the application shall have the right to file an answer or to intervene in the proceedings. The Commission shall issue an appropriate order with respect to such application. SEC. 11. No specific authority to transport the mail shall be required to be obtained by any carrier from the Commission, or from a regulatory body of any State, Territory, or possession of the United States, and no rate paid for said transportation shall be subject to control by any such regulatory body except as herein specifically provided. SEC. 12. The Postmaster General may enter into special contracts for periods not in excess of four years, without advertising for bids, with carriers for mail transportation where, in his judgment, conditions warrant the payment of rates different from those prescribed by the Commission. SEC. 13. (a) The Postmaster General is authorized to provide for mail transportation by contract for periods not in excess of four years, without advertising for bids, at rates which may be different from those prescribed by the Commission under this Act, with any carrier which holds a certificate of public convenience and necessity as a common carrier by motor vehicle or a permit as a contract carrier by motor vehicle from the Commission or from a regulatory body of a State, Territory, or possession of the United States, and a local cartage common or contract carrier of property operating under the exemption of section 203 (b) (8) of part II, Interstate Commerce Act, or under the regulatory law of any State, Territory, or possession of the United States. (b) No motor carrier shall be eligible to contract under this section except over the route or routes, or within the territory prescribed in its certificate, permit, or exemption. SEC. 14. Nothing in this Aet shall affect any existing contract for mail transportation, or limit the authority of the Postmaster General to enter into contracts in accordance with existing law with any person, firm, partnership, association, or corporation for mail transportation, including star and T-route services, contracts, or operations. Senator CHURCH. We have with us this morning a number of representatives from the Post Office Department, who are scheduled to testify first. Prior to hearing from them, I would like to introduce into the record a letter that I have received from the director of the Association of American Railroads, dated July 30, 1958, in which the position of the association is set forth. (The above-mentioned letter is as follows:) Hon. FRANK CHURCH, ASSOCIATION OF AMERICAN RAIROADS, RAILWAY MAIL TRANSPORTATION DIVISION, Washington, D. C., July 30, 1958. Chairman, Post Office Subcommittee, Committee on Post Office and Civil Service, United States Senate, Washington, D. C. DEAR SENATOR CHURCH: In connection with hearings before your subcommittee on S. 3960 scheduled for July 30 and 31, it is requested that the following comments be considered by the subcommittee and that this letter be made a part of the record of these hearings. As the subcommittee is aware, railroad transportation of mail is carried on pursuant to a complex statutory and regulatory scheme that has evolved and developed over the years. The country's railroads have carried United States mail almost from the time they came into existence. Consequently, the railroads of the United States desire to express an interest in S. 3960, a bill to provide for the transportation of mail by motor carriers according to a statutory scheme patterned after that applicable to railway mail transportation which has been in effect for over 40 years. (Today, motortruck operators transport United States mail under the so-called Star-route laws; 39 U. S. C. 429, and so forth). As such, S. 3960 has far-reaching consequences for railroads as well as for motor carriers. In the time that has been available it has not been possible to determine, either completely or definitely, the nature and significance of these conse |