ALASKAN AND HAWAIIAN TRANSPORTATION SATURDAY, OCTOBER 24, 1959 U.S. SENATE, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Senator BARTLETT. The committee will be in order. It is a particular pleasure for me to be here again in Anchorage, and to have the opportunity to see so many friends. I should like to introduce to the group in the audience those who are here with me, and so I will start from my far left: Mr. Thomas E. Staken, member of the Federal Maritime Board. Mr. Lawrence Walrath, member of the Interstate Commerce Commission. Mr. Abe Romick, commissioner of the department of commerce, for the State of Alaska. I think I'll ask you to rise, one by one, so they will be sure—Mr. Stakem. Mr. Walrath. Mr. Romick. [Applause]. Seated closely behind those three is Mr. Henry Whitehouse, an attorney for the ICC, and here in the background, with a screen of some kind lined up, is Dr. John Buckley, Fish and Wildlife Service, now in Washington, and formerly of the University of Alaska. And right back here at the same table is Mr. Harry Huse, who is the fish and wildlife expert with the Senate Interstate and Foreign Commerce Committee. Recording our testimony, and very efficiently, is Mr. William Miller, of Seattle. On my immediate left is Frank Barton, transportation counsel for the Senate committee; and on my immediate right is Mr. Harold Baynton, chief counsel for that same committee. We have the great pleasure of having with us Mr. Allan Perley, right here in the gray suit. Mr. Perley is legislative counsel for the U.S. House of Representatives; and in that capacity, he has a veritable flock, or group, or horde of lawyers under him drafting bills for these 435 Members of the House of Representatives; but here, happily enough, he is serving as acting counsel for the House Interstate and Foreign Commerce Commitee. Tomorrow, this committee this committee being the Senate Interstate and Foreign Commerce Committee-or at least one member of it with an adequate number of staff members, hopes to be joined by at least one, and perhaps more members of the House committee. We expect to have with us, at a minimum, Representative Morgan Moulder of Missouri. This committee will take testimony, while in Anchorage, on all of on a number of transportation bills, having to do with the State of Alaska, and each of them having an order of some importance in the economic future of the 49th State. This committee will take testimony, while in Anchorage, on all of these bills, and any other matter which might come under the jurisdiction of the committee. I would suggest that there is little point to be gained in testifying on subjects outside of the jurisdiction of the committee, because in the first place, the committee cannot do much about those matters; and in the second place, we are of the opinion that we are going to have to proceed in a very orderly manner, even perhaps to the point of limiting the time that the chairman may speak, in order to conclude these hearings by Monday afternoon. We understand that there are many witnesses to be heard, and we want them to have every opportunity. I think, if I am not overruled by those with me, that on Monday morning, we had better start at 9 o'clock, as it is going to be a pretty full day. Now, we have these bills, among others: 1. S. 1507, to make the Interstate Commerce Act applicable to transportation by water between Alaska ports and other ports in the United States. 2. S. 1508, to provide for economic regulation of the Alaska Railroad under the Interstate Commerce Act. 3. S. 2451, H.R. 8521, and H.R. 8564, companion bills, to establish a joint board for through routes and joint rates and to make mandatory through routes and joint rates by carriers engaged in transportation of property between Alaska or Hawaii, and other States. 4. S. 2452, H.R. 8520, and H.R. 8565, companion bills, to establish a joint board and to permit the filing of through routes and joint rates for carriers engaged in transportation of property between Alaska or Hawaii and the other States. 5. S. 2514, to establish the Alaska Railroad as a Government corporation. 6. H.R. 6244, to provide grandfather rights for motor carriers and freight forwarders operating within Alaska and between Alaska and other States and for other water carriers operating within Alaska; to provide for Interstate Commerce Commission regulation of the Alaska Railroad; and to make the Interstate Commerce Act applicable to for-hire water carriers operating between ports of Alaska and ports of other States. I will insert copies of the above-mentioned bills into the record at this point. There is before the committee a number of other bills which I did not list. Two of them relate to proposals which have been made to utilize Federal aid highway funds in the establishment of a ferry service in southeastern Alaska, and to provide a construction subsidy for ferries built to engage in that trade; and still another bill to continue a law now in effect, permitting certain charter vessels to continue service to southeastern Alaska ports. We took it that those bills would be of no especial interest to this section of Alaska; however, if anyone wants to testify on those measures, we will be glad to hear them. Mr. Baynton, how do we have these listed as a consequence of our meeting, last night, as to order of consideration? Mr. BAYNTON. Mr. Chairman, you would first take up your socalled joint board bill, which is S. 2451, and S. 2452; and then the bill to make the Interstate Commerce Act applicable to Alaska; and the bill to incorporate the Alaska Railroad; next you would take up S. 1509, in which the trucking industry is interested. The two joint bills, S. 2451 and S. 2452. Senator BARTLETT. All right. Now, first we shall consider S. 2451, S. 2452. To start this out properly, perhaps the chairman had best ask those who want to testify on these bills to rise and give their names, and we will note those names, and call all of those witnesses, before we will proceed to other measures. (A short recess was had.) Senator BARTLET. Harold-Harold Strandberg, do you know if the chamber of commerce intends to appear on any of these bills? Mr. STRANDBERG. Yes, but I am speaking for the port commission of the city of Anchorage. Senator BARTLETT. One moment. The chairman notes the presence in the meeting hall of the mayor of Anchorage, Mayor George Byer. George, you will be our first witness. STATEMENT OF THE HONORABLE GEORGE BYER, MAYOR OF ANCHORAGE, ALASKA Mayor BYER. Thank you. Senator Bartlett, and ladies and gentlemen, now, I think that this is a very worthy day for Anchorage, and of course, for Alaska. We are grateful to these honorable and respected men who are giving their time so that you may be heard; and we again extend our appreciation to you all. Thank you. Senator BARTLETT. Thank you very much, Mr. Mayor. I can only say, in our behalf, that we are delighted to be here, and especially glad to be here in the capacity that is meaningful to the economy of this, and other sections of Alaska. Mr. Kinnaird will be our next witness; and we are glad to have you here, Mr. Kinnaird, and we welcome the testimony you are about to give. Mr. KINNAIRD. Thank you, Senator Bartlett. STATEMENT OF JOHN M. KINNAIRD, VICE PRESIDENT, CONSOLIDATED FREIGHTWAYS, INC., MENLO PARK, CALIF. My name is John M. Kinnaird. I am a vice president of Consolidated Freightways, Inc., Menlo Park, Calif. Our company has been engaged since 1929 in common carriage of freight by motor vehicle, starting originally in the Pacific Northwest and subsequently extending its service by applications for additional authority and by acquisition of other motor carriers until its lines now reach Chicago, Louisville, Dayton, and Cincinnati in the East, and Los Angeles and Tucson, on the south. Consolidated Freightways also conducts motor carrier operations in Alaska and between Alaska and the Pacific Northwest and through subsidiaries in western Canada and Hawaii. 5170961--- 9 Our interest in Senate bills S. 1507, S. 1508, S. 1509, S. 2451, and S. 2452, arises not alone from our activities as a common carrier by motor vehicle in Alaska and between the other States and Alaska, but also from participation in the development of coordinated transportation by all modes including land, sea, air, inland waterway and pipeline carriers. I am going to depart from the testimony, but the Senator has permitted this to be included in the record, as if fully read. These efforts have resulted in piggyback service with a number of progressive railroads, joint rail-motor rates with one such railroad, joint motor-air rates with airlines and joint motor-barge rates with inland waterway carriers. We have also been actively and in many cases successfully seeking similar working arrangements with steamship companies operating to Hawaii, Guam, Okinawa, the Philippines, Japan, and other Pacific areas, to Europe, north Africa, Central America, and South America. Present operations between Seattle and points in Alaska through our Garrison Fast Freight Division constitute a time-tested and successful coordination of motor carrier, rail carrier, and steamship operations which has met a real transportation need, as evidenced by the large and still-growing volume of both military and commercial traffic which has been developed over the last 6 years in this coordinated service. The facilities of our motor carrier operation in Seattle have been melded with those of Alaska Steamship Co., the Alaska Railroad, and our own motor carrier operation in Alaska and between the continental United States and Alaska to perform, under a single factor through rate and under a single bill of lading, a coordinated transportation service which has contributed in a significant way to the fulfillment of our military needs, to the economic development of Alaska, to the growth of commerce between Alaska and the rest of the United States, and to the enhancement of the Alaskan standard of living. Both the continuation and further development of this joint service by the cooperating carriers are dependent upon a sound pattern of regulation administered by such governmental body or bodies as seems wise to the Congress. We believe that the pattern of regulation evolved here will not affect alone the Alaskan trade but will influence and possibly determine the pattern of regulation of coordinated landsea transportation to Hawaii, U.S. territories and possessions, and to foreign ports throughout the world. Our company is active in operations to many of these points as well, and is equally concerned with development of a sound regulatory approach to those activities. A brief description of the history and development of our Alaskan service will provide a background which should aid in a determination of the regulatory pattern best suited to the fostering in the public interest of a sound transportation system for Alaskan commerce. Garrison Fast Freight, Inc. was organized in May 1953 by Jack Garrison, who had previously had extensive operating experience in the movement of traffic to, from, and within Alaska. Associated with him were four other Alaskan truck operators. In conjunction with Alaska Steamship Co., Garrison developed a fully coordinated transportation service between Seattle and Alaska points. In July 1953, intra-Alaska truck operations from Anchorage_to Elmendorf Air Force Base and Fort Richardson were begun under military tenders for the movement of cargo between the Anchorage steamship piers and the bases named. A comprehensive trucking service was also established for commercial users. In August of the same year a similar service was inaugurated from the port of Valdez to such points as Big Delta, Tok Junction, Tanacross, Eilson and Ladd Air Force Bases, and Fairbanks, under Alaska Steamship tariffs filed with Federal Maritime Board naming Garrison as a connecting carrier for the highway haul north from Valdez. This operation covered commercial general freight and perishables. In January 1954 highway trailers were first employed in the movement of military and commercial perishables traffic without rehandling from Seattle through Valdez to points north of the range in Alaska. Similar perishables service was commenced through Valdez to Anchorage and on military general freight from Seattle to military bases throughout Alaska in December 1954. In February 1956 most of the through van movements from Seattle were shifted to the port of Seward in order to utilize piggyback service of Alaska Railroad to Anchorage and Fairbanks. Loose stow cargo continued to be handled through Valdez and by highway to Alaskan destination. Throughout the period described, Garrison's Seattle-Alaska traffic was handled under tariffs filed with Federal Maritime Board by Alaska Steamship Co. showing Garrison Fast Freight as a connecting carrier for the Alaskan portion of the haul or under intra-Alaska or Seattle-Alaska tenders filed with the military by Alaska Steamship and/or Garrison. In January 1957, Garrison and Alaska Steamship secured the approval of Federal Maritime Board of an agreement under section 15 of the Shipping Act of 1916 (46 U.S.C., section 814) providing for divisions of a through single factor rate from Seattle to accessible Alaskan points on perishables moving for commercial shippers and receivers. Garrison filed tariffs with Federal Maritime Board and thenceforth provided the shipping public a through bill of lading, a single-factor through rate and single carrier responsibility from store door in Seattle to store door in Alaska utilizing and coordinating three separate modes of transportation-truck, steamship, and railroad. This service was made possible by the Federal Maritime Board's rulings in Alaska Rates, 2 U.S.M.C. (1941) and Bernard Ulmann Co. v. Puerto Rican Express Co., 3 F.M.B. 771 (1952) which permit carriers which do not operate vessels to enter into agreements under section 15 as common carriers by water with steamship companies and to establish single factor through rates in their own name for movements between U.S. ports and territorial or foreign ports. The same type of tariff publication was employed by Garrison to provide for transportation of general cargo to Alaska in May 1958. In February 1957, Consolidated Freightways purchased the physical assets of Garrison Fast Freight and has continued its operation since that time as its Garrison Fast Freight Division. At this time. the use of 24-foot containers was introduced. These containers were designed to be transported over the highway on skeleton trailers and are readily handled on the decks of Alaska Steamship vessels and on the flat cars of Alaska Railroad, eliminating the weight and bulk of the wheels and undercarriage when not moving over the highway. |