"(6) The Commission is authorized, upon complaint or upon its own Initiative without complaint, to investigate and determine whether any agreement previously approved by it under this section, or terms and conditions upon which such approval was granted, is not or are not in conformity with the standard set forth in paragraph (2), or whether any such terms and conditions are not necessary for purposes of conformity with such standard, and, after such investigation, the Commission shall by order terminate or modify its approval of such agreement if it finds such action necessary to insure conformity with such standard, and shall modify the terms and conditions upon which such approval was granted to the extent it finds necessary to insure conformity with such standard or to the extent to which it finds such terms and conditions not necessary to insure such conformity. The effective date of any order terminating or modifying approval, or modifying terms and conditions, shall be postponed for such period as the Commission determines to be reasonably necessary to avoid undue ha dship. "(7) No order shall be entered under this section except after interested parties have been afforded reasonable opportunity for hearing. "(8) Parties to any agreement approved by the Commission under this section and other persons are, if the approval of such agreement is not prohibited by paragraph (3), (4), or (5), hereby relieved from the operation of the antitrust laws with respect to the making of such agreement, and with respect to the carrying out of such agreement in conformity with its provisions and in conformity with the terms and conditions prescribed by the Commission. "(9) Any action of the Commission under this section in approving an agreement, or in denying an application for such approval, or in terminating or modifying its approval of an agreement, or in prescribing the terms and conditions upon which its approval is to be granted, or in modifying such terms and conditions, shall be construed as having effect solely with reference to the applicability of the relief provisions of paragraph (8).” [S. 110, 80th Cong., 1st sess.] AN ACT To amend the Interstate Commerce Act with respect to certain agreements between carriers "(A) The term 'carrier' means any common carrier subject to part I, II, or III, and shall include any freight forwarder subject to part IV, of this Act; and "(B) The term 'antitrust laws' has the meaning assigned to such term in section 1 of the Act entitled 'An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes', approved October 15, 1914. "(2) Any carrier, party to an agreement between or among two or more carriers concerning, or providing rules or regulations pertaining to or procedures for the consideration, initiation, or establishment, of rates, fares, charges (including charges as between carriers), classifications, divisions, allowances, time schedules, routes, the interchange of facilities, the settlement of claims, the promotion of safety, or the promotion of adequacy, economy, or efficiency of operation or service, may, under such rules and regulations as the Commission may prescribe, apply to the Commission for approval of the agreement, and the Commission shall by order approve any such agreement (if approval thereof is not prohibited by paragraph (4), (5), or (6)) if it finds after public notice in the Federal Register and public hearing not less than sixty days thereafter that the object of the agreement is appropriate for the proper performance by the carriers of service to the public, that the agreement is not unjustly discriminatory as between shippers or geographical regions or areas, that it will not unduly restrain competition, and that it is consistent with the public interest as declared by Congress in the natieral transportation policy set forth in this Act; otherwise the application shall be denied The approval of the Commission shall be granted only upon such terms and conditions as the Commission may prescribe as necessary to insure compliance with the standards above set forth in this paragraph. "(3) Each conference, bureau, committee, or other organization established or continued pursuant to any agreement approved by the Commission under the provisions of this section shall maintain such accounts, records, files, and memoranda and shall submit to the Commission such reports as may be prescribed by the Commission, and all such accounts, records, files, and memoranda shall be subject to inspection by the Commission or its duly authorized representatives. No bank or other financial institution shall be a member of any such conference,. bureau, committee, or other organization. "(4) The Commission shall not approve under this section any agreement between or among carriers of different classes unless it finds that such agreement is limited to freight classifications or to joint rates or through routes; and for purposes of this paragraph carriers by railroad, express companies, and sleeringcar companies are carriers of one class; pipe-line companies are carriers of one class; carriers by motor vehicle are carriers of one class; carriers by water are carriers of one class; and freight forwarders are of another class. "(5) The Commission shall not approve under this section any agreement which it finds is an agreement for a pooling, division, consolidation, merger, purchase, lease, acquisition, or other transaction, to which section 5 of this Act is applicable. (6) The Commission shall not approve under this section any agreement which establishes a procedure for the determination of any matter through joint consideration unless it finds or by condition requires that under the agreement there is or shall be accorded to each party the free and unrestrained right to act contrary to and independently of the initial determination or report, or any subsequent determination or report, arrived at through such procedure, and unless it finds or by condition requires that all carriers of the same class (as defined in paragraph (4) of this section) within the territorial and organizational scope of such agreement shall be eligible to become and remain parties to the agreement upon application and payment of charges applicable to other parties of the same class. Nothing in this section and no approval of any agreement by the Commission under this section shall be so construed as in any manner to remove from the purview of the antitrust laws any restraint upon the right of independent action by any carrier by means of boycott, duress, or intimidation. "(7) The Commission is authorized, upon complaint or upon its own initiative without complaint, to investigate and determine whether any agreement previously approved by it under this section, or terms and conditions upon which such approval was granted, is not or are not in conformity with the standards set forth in paragraph (2), or whether any such terms and conditions are not necessary for purposes of conformity with such standards, and, after such investigation, the Commission shall by order terminate or modify its approval of such agreement if it finds such action necessary to insure conformity with such standards, and shall modify the terms and conditions upon which such approval was granted and may impose additional terms and conditions to the extent it finds necessary to insure conformity with such standards or to the extent to which it finds such terms and conditions not necessary to insure such conformity. Any person, including the Attorney General of the United States, may make complaint to the Commission of any action taken under or pursuant to an agreement theretofore approved by the Commission, and the Commission, upon such complaint or upon its own initiative, shall after hearing determine whether any such action is in conformity with such agreement and with the terms of the approval thereof by the Commission and is consistent with the standards above set forth and whether its approval of the agreement should be modified or terminated or additional terms or conditions be prescribed with respect to the particular action complained of. The effective date of any order terminating or modifying apapproval or modifving terms and conditions, or prescribing terms or conditions, shall be postponed for such period as the Commission determines to be reasonably necessary to avoid undue hardships. "(8) No order shall be entered under this section except after interested parties (including in all cases the Attorney General of the United States and interested State regulatory commissions or other authorities) have been afforded reasonable opportunity for hearing. "(9) No agreement approved by the Commission under this section and no conference or joint or concerted action pursuant to and in conformity with such agreement as the same may be conditioned by the Commission, shall be deemed to be a contract, combination, conspiracy, or monopoly in restraint of trade or commerce within the meaning of the antitrust laws: Provided, That the approval by the Commission of any agreement concerning, or providing rules or regulations pertaining to or procedures for the consideration, initiation, or establishment of, time schedules, the interchange of facllities, the settlement of claims, the promotion of safety, or the promotion of adequacy, economy, or efficiency of operation or service shall not be deemed to be approval of any subsequent modification or amentment thereof or of any supplemental or other agreement made pursuant to any provision contained in the original approved agreement: And provided further, That the approval by the Commission of any agreement providing procedures for the consideration, initiation, or establishment of time schedules, the interchange of facilities, the settlement of claims, the promotion of safety, or the promotion of adequacy, economy, or efficiency of operation or service shall not be deemed to be approval of any joint or concerted action taken pursuant to any provision of such agreement. "(10) Any action of the Commission under this section in approving an agreement, or in denying an application for such approval, or in terminating or modifying its approval of an agreement, or in prescribing the terms and conditions upon which its approval is to be granted, or in modifving such terms and conditions, shall be construed as having effect solely with reference to the applicability of the provisions of paragraph (9). "(11) The enactment of this section shall not "(a) deprive the Supreme Court of jurisdiction to hear and determine the case of Georgia versus Pennsylvania Railroad Company, et al. Docket Numbered 11 (Original), October Term, 1945, or any proceeding for the enforcement of the provisions of any decree entered in such suit; "(b) change any principle of substantive or procedural law otherwise applicable in the determination of such suit or proceeding, or deprive any party to such suit of any relief to which such party would be entitled but for the enactment of this section; or "(c) render lawful the performance of any past or future act which shall have been found by the Supreme Court in such suit or proceeding as it relates to the parties to such suit to be unlawful or which shall have been prohibited by the terms of any decree entered therein or any supplement thereto or any modification thereof." Passed the Senate June 18 (legislative day, April 21), 1947. Attest: CARL A. LOEFFLER, Secretary.. The CHAIRMAN. We have a rather long list of witnesses. I am hopeful that it will be possible for the witnesses to state their viewpoints as briefly as possible with the knowledge that their full statements will be made a part of the record. Of course it is realized that many members of the committee have already heard hearings on this particular legislation in previous sessions of Congress. The legislation has had heretofore formal consideration in the House. I call that to your attention, for the reason that the few members on this committee who are not familiar with the subject might find it helpful to give consideration to testimony that has previously, been presented to this committee, as well as to the debates that have taken place in Congress. That supplemented the hearings which we are now about to conduct and will give a broad knowledge of the subject matter. We have with us this morning Hon. Clyde B. Aitchison, Chairman of the Interstate Commerce Commission. Mr. Aitchison. STATEMENT OF HON. CLYDE B. AITCHISON, CHAIRMAN OF THE INTERSTATE COMMERCE COMMISSION, WASHINGTON, D. C. Commissioner AITCHISON. Mr. Chairman and gentlemen of the committee. The CHAIRMAN. Commissioner Aitchison, we are pleased to have you with us and will be glad to hear you at this time. Commissioner AITCHISON. Mr. Chairman and gentlemen of the committee: My name is Clyde B. Aitchison and I am Chairman of the Interstate Commerce Commission. I was asked to appear particularly with reference to the bill, H. R. 221, introduced by Mr. Bulwinkle. I have prepared a statement in accordance with the rules and statutes, which I understand has been distributed. The position of the Commission in regard to that bill is stated in the report of its Legislative Committee, Commissioners Splawn, Mahaffie, Rogers, and myself, to Representative Wolverton, chairman of this committee, dated February 17, 1947. I request that the report of our Legislative Committee be incorporated in this record, and I can say that the report represented the unanimous view of the Commission, FEBRUARY 17, 1947. HON. CHARLES A. WOLVERTON, Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D. C. MY DEAR CHAIRMAN WOLVERTON: Your letter of February 7, 1947, addressed to the Chairman of the Commission and requesting a report and comment on H. R. 221, introduced by Congressman Bulwinkle, to amend the Interstate Commerce Act with respect to certain agreements between carriers, has been referred to our legislative committee. After careful consideration by that committee I am authorized to submit the following comments in its behalf: The Interstate Commerce Commission is in accord with the general objective of this bill, and for several years in its annual reports has recommended legislation "to provide adequate regulation of two or more common carriers or freight forwarders, subject to the [Interstate Commerce] act, when they agree upon and act jointly through a bureau, conference, or association in establishing rates, fares, charges, et cetera, subject to the provisions of the act.' We have a few suggestions which would improve the wording of H. R. 221, and which we believe important. Under paragraph (2) the requisite finding of the Commission would be thatby reason of furtherance of the national transportation policy declared in this act, the relief provided in paragraph (8) should apply with respect to the making and carrying out of such agreement; We believe that this statement of the standard set up for the Commission's guidance is too indefinite. As a substitute, we suggest the following, which follows the phraseology of certain other sections of the act of a kindred nature: The object of the agreement is appropriate for the proper performance by the carriers of service to the public, that the agreement will not unduly restrain competition, and that it is consistent with the public interest as declared by Congress in the national transportation policy set forth in this act; We believe also that the bill should empower the Commission to require reports from rate bureaus and other organizations maintained by carriers or associations thereof and to inspect their records and accounts. We therefore suggest the addition of the following paragraph to follow paragraph (2): Each conference, bureau, committee, or other organization established or continued pursuant to any agreement approved by the Commission under the provisions of this section shall maintain such accounts, records, files, and memoranda and shall submit such reports as may be prescribed by the Commission, and all such accounts, records, files, and memoranda shall be subject to inspection by the Commission or its duly authorized representatives. With the suggested amendments we recommend that the bill pass. /s/ WALTER M. W. SPLAWN, Chairman, Legislative Committee. CLYDE B. AITCHISON. I bear in mind the admonition of the clerk of the committee as to brevity. On October 9, 1945, at the direction of the Commission I appeared before the committee and gave testimony at length concerning H. R. 2536, Seventy-ninth Congress, first session, as reported in the hearings, pages 9-22, inclusive. The bill came before the Senate Committee on Interstate Commerce, after passage by the House of Representatives, and I then appeared, April 23-24, 1946, and gave testimony on behalf of the Commission, at its direction, as appears in the printed record, pages 1131-1213, inclusive. I also appeared before the Senate committee upon S. 110 at the present Congress, January 21, 1947, with respect to the bill as introduced, and referred to my previous testimony before the two committees, and the reports of the Commission, and asked that they be incorporated by reference. This permission was granted. In the interest of conservation of time, I make the same request here. I call attention to the fact that I have previously appeared before this committee and testified at considerable length. My statement gives references to the places where my testimony may be found in the printed proceedings. I have also testified twice before the Senate committee, first with respect to H. R. 2536, which, as the chairman said, was passed at the last session of the last Congress but died in the Senate and also with respect to S. 110, which has been passed by the Senate and now is before this committee. I just refer, for the sake of brevity, the committee to my testimony given rather elaborately and at much length at those times and with that and with the general statement that the Commission has reported to Congress its annual reports for years and in the testimony of its representatives, legislation along this line is in, the judgment of the Commission, in its considered judgment, desirable, and that represents the unanimous view of the Commission. I believe that is all, Mr. Chairman, if that is sufficient, unless the committee has some questions. The CHAIRMAN. Mr. Aitchison, would it be convenient for the Commission some time within the near future, to give expression to its views on the amendments that were made to the bill by the Senate. Commissioner AITCHISON. I think so. I will communicate that request to the Commission. The CHAIRMAN. I think the committee would be appreciative of having the views of the Commission with respect to the effect of those amendments. Commissioner AITCHISON. Thank you. (The matter referred to is as follows:) Hōn. CHARLES A. WOLVERTON, INTERSTATE COMMERCE COMMISSION, Washington 25, June 25, 1947. Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D. C. MY DEAR CHAIRMAN WOLVERTON: Responsive to your request made to Chairman Aitchison on June 25 at the open hearings before your committee on H. R. 221 and S. 110 the following comments are respectfully submitted concerning provisions of S. 110 as it was passed by the Senate. S. 110 as introduced by Senator Reed and referred to the Committee on Interstate and Foreign Commerce of the Senate, and reported out by that committee, contained recommendations which the Interstate Commerce Commission has submitted to your committee in its letter of February 17, 1947, commenting on H. R. 221, introduced by Congressman Bulwinkle. These recommendations by the Interstate Commerce Commission were approved by the Committee on Interstate and Foreign Commerce of the Senate and were in S. 110 as reported out by that committee. These recommendations of the Commission were retained by the Senate after consideration of the bill on the floor, and they appear in S. 110 now before you. We recommend that this committee accept and incorporate in H. R. 221 these same ainendments which are now before you in our letter of February 17, 1947, commenting on H. R. 221. In our opinion, our recommendations are particularly important. First, with respect to what the Commission shall find, and second, with respect to authority of the Commission to regulate the accounts and require |