General Harbord then called upon Commissioner Johnston for his report, which covered the following cases handled since the preceding meeting of the Committee of Directors: 1. Proposal of Santa Fe Lines in Texas, Missouri-Kansas-Texas R. R. of Texas, Missouri Pacific Lines, St. Louis San Francisco & Texas Ry., and Chicago, Rock Island & Pacific Ry. To Establish Materially Reduced Rates on Certain Refined Petroleum Products Between Points in Texas and Between Texas Points and Points in the Shreveport Group During May of this year the Santa Fe and four other Texas Lines filed a proposal to establish reduced rates on certain refined petroleum products to meet actual and threatened truck competition, particularly the threat of the major oil companies to discontinue operation of bulk stations and serve filling stations directly with their own trucks; also, the practice of trading gasoline, indulged in by the oil companies. While Traffic Executives of Texas lines were generally agreed a reduction in rates was necessary to meet the situation in Texas, the reductions in the instant proposal were protested because it was felt they were lower than necessary to stop erosion to trucks over shorter distances and not low enough to discourage the trading of gasoline over distances beyond 250 miles. Following the hearing, I proposed a compromise scale designed to satisfy the oil companies and to overcome objection of protestants. I have since been advised that that scale of rates was adopted and became effective August 6. 2. Proposal of Chicago, Burlington & Quincy Railroad To Establish Rates on Freight in Trailers or Semitrailers, Louded on Flat Cars, Between Chicago and Kansas City On May 31, 1940, the Burlington filed independent notice of its intention to proceed with publication of rates on 1. c. 1. freight in trailers on flat cars between Chicago and Kansas City. This action was protested, and formal hearing held. Because the rates proposed under this arrangement will likely create unreasonable disparity and have the effect of forcing down the present level of 1. c. 1. rates, resulting in substantial revenue loss to Western carriers as a whole, I recommended that the proposal be not made effective. Under date of August 26, Mr. Budd, of the Burlington, advised me of their intention to proceed with publication of the rates in question. On August 26, Mr. Upthegrove, Chief Executive Officer of the St. Louis Southwestern, and, on September 11, Mr. Sloan, Chairman and President of the Missouri-Kansas-Texas Lines, also advised those lines were not in accord with conclusions reached. Report was also made concerning the following subjects: 1. Reductions in eastbound perishable schedules, which were put in at the request of shippers, from California concentration points to Chicago and St. Louis, and which were subsequently abandoned because of failure of Eastern lines to make necessary adjustments in their train schedules to provide the desired earlier arrival at Atlantic Seaboard destinations. 2. Attorney General's Committee on Administrative Procedure with regard to the handling of cases before the National Railroad Adjustment Board. 3. Fair Labor Standards Act-Further in connection with recommendation of the Railroad Industry Committee establishing minimum wage of 36 cents per hour for employes of Class I Railroads. 4. Construction of natural-gas pipe line by the Reserve Gas Pipe Line Company to transport natural gas from Texas for distribution in portions of Pennsylvania, New Jersey, and New York State. There being no further business, the meeting was duly adjourned at 4:00 P. M. F. M. WILSON, Secretary. EXHIBIT No. 305 REGULAR MEETING OF THE COMMITTEE OF DIRECTORS Regular meeting of the Committee of Directors was held at 3:00 P. M. Wednesday, May 13, 1936, in the Board Room of the Bank of the Manhattan Company, 40 Wall Street, New York City. The following were in attendance: E. N. Brown, F. W. Doolittle, Allen P. Green, Gen. James G. Harbord, F. W. Charske, Will H. Hays, C. Jared Ingersoll, Francis F. Randolph. In the absence of the Chairman, Mr. E. N. Brown presided at the meeting and Max Glenn acted as Secretary thereof. The minutes of the preceeding meeting of the Committee of Directors were read, corrected, and approved. The Commissioner reported upon the following subjects with which he had dealt since the meeting of February 11, 1936: 1. Optional Honoring Arrangement on Interstate Tickets by the A. T. & S. F. Ry. Between Los Angeles and San Francisco With Santa Fe Trail Stages As the Committee had previously been advised, the Southern Pacific Company did not concur in the report and conclusions rendered under the Commissioner Agreement. Statement fully outlining the position of the Southern Pacific was prepared by Mr. A. D. McDonald, President, for transmission to the Committee through the representative of that company on the Committee. The Commissioner was directed to secure copies of the submission for each of the members of the Committee and also to request that copy of this submission be furnished Mr. S. T. Bledsoe, President of the A. T. & S. F. Ry. Co., in order that he might be in possession of the protest and, if he so desired, submit to the Committee of Directors a reply thereto. Further action by the Committee upon the protest by the Southern Pacific was held in abeyance pending opportunity to review the written protest. 2. Proposal of Santa Fe to Establish 11⁄2¢ Coach Fares Intrastate in California While the Santa Fe is not in accord with the conclusions reached under the Commissioner Agreement, action adverse to the report is being held in abeyance pending decision of the California Commerce Commission. 3. Proposal of Great Western Railroad to Establish Rates for Trucks and Trailers Mounted on Flat Cars Between Chicago and the Twin Cities The Commissioner advised that the proposed tariff filed by the Chicago Great Western Railroad Company had been superseded by a new joint tariff filed by the Keeshin Company under the Federal Motor Carrier Act; that the subject is being given attention by the Association of American Railroads and in such circumstances there appears to be no further action required under the Commissioner Agreement. 4. Kansas City Southern Import and Export Rates 5. Passenger Train Schedules (a) Chicago-Denver Service on Basis of 16 hours-U. P.-C. & N. W.-Burlington. (b) Chicago-California Service on Basis 39 hours, 45 minutes-Santa Fe Super-Chief and U. P.-C. & N. W. Streamliner. 6. Freight Schedules (a) Kansas City Southern Shreveport Service. (b) Oklahoma City-Amarillo Service by Rock Island. 7. Showing Motion Pictures on Passenger Trains The Commissioner advised that conference on this subject had been held in Chicago on May 12th, following which he was endeavoring to secure concurrence of all concerned to an agreement eliminating such practices effective July 7, 1936, and providing further that no commitments would be made for 1937 without opportunity for joint consideration by all interested parties prior thereto. Attention was directed to the comparatively small attendance of the whole Committee at meetings of the Committee of Directors, and the Commissioner was directed to communicate with each member of the Committee, in order to develop whether or not the present hour of meeting, namely 3:00 P. M. on the second Wesdnesday of each second month, was satisfactory to the members and, if not, endeavor to develop what day and hour would be more convenient to the majority of the Committee. There being no further business to come before the meeting, same was duly adjourned at 5:00 P. M. MAX GLENN, Secretary. EXHIBIT No. 306 To the Committee of Directors: COMMISSIONER OF WESTERN RAILROADS, For your information, I am outlining, below activities upon which I have been engaged during the month of May 1936: 1. Proposal of the A. T. & S. F. Ry. Co. to Establish 11⁄2¢ Coach Fares Intrastate in California.-There has been no change in the status of this controversy since my report of May 6, 1936. 2. Optional Honoring Arrangement on Interstate Tickets by the A. T. & S. F. Ry. Co. Between Los Angeles and San Francisco With Santa Fe Trail Stages.-Pursuant to direction given at the meeting of the Committee of Directors, Mr. A. D. McDonald, President of the Southern Pacific Company, was requested to furnish each member of the Committee a copy of the submission presented to the Committee through the Southern Pacific Company representative, Mr. H. W. de Forest, appealing from the decision of the Commissioner rendered in this case. This was done and it is my understanding that each member of the Committee has now received a copy of the brief, outlining the position of the Southern Pacific Company. Copy was also furnished Mr. S. T. Bledsoe, President of the A. T. & S. F. Ry. Co., and he has been advised that action by the Committee of Directors is being held in abeyance pending receipt of statement from the A. T. & S. F. Ry. Co. in support of its position in this controversy. It is my understanding that such statement is now in course of preparation and will be forwarded to the members of the Committee of Directors within a few days. Upon opportunity for review of those documents, the Committee may desire to give consideration to disposition of this controversy prior to the next meeting, which will fall on July 8 h. If there is any manner in which I may be helpful in connection with this subject I shall be very glad to do so. 3. Establishment of Expedited Freight Service Between Kansas City, Mo., and Shreveport, La., by the Kansas City Southern Railway Company.-As advised in my letter of May 6th, conference between representatives of carriers interested in the above service was held in Kansas City, Mo., on Friday, May 8th, at which time agreement was reached with relation to this service acceptable to all interested parties. Therefore, the controversy was composed without the necessity of formal action under the Commissioner Agreement. 4. Showing Motion Pictures on Regular Passenger Trains.-As advised in my letter of May 19, 1936, it was possible to reach agreement between all Western carriers to the effect that motion pictures on regular passenger trains would be discontinued after July 7, 1936, not reestablished during the remainder of the Year 1936, and no commitments or arrangements made by any Western road to place motion pictures in trains for the Year 1937, until the subject is jointly considered and acted upon in a meeting of all interested parties. 5. Proposal of the C. St. P. M. & O. Ry. Co. to Reduce Rates on Fine Coal From Head-of-Lakes to Chaska, Minn.-On May 28, 1936, the C. St. P. M. & O. Ry. instructed that rates on fine coal from the docks at Head-of-Lakes to Chaska, Minn., be published on a basis which would effect a reduction of 35 cents per ton. Protest under the Commissioner Agreement was filed by the C. M. St. P. & P. R. R., alleging that the proposed rate would seriously affect existing coal adjustment not only from Head-of-Lakes but from midwestern coal-producing areas as well, with resultant loss in revenue. Request has been made upon the C. St. P. M. & O. Ry. to hold the publication of the reduced rates in abeyance pending opportunity for review and report under the Commissioner Agreement. It is anticipated that this subiect will be handled to a conclusion within the near future. 6. Proposed Freight Schedule Between Dupo and El Paso by Missouri-Texas & Pacific.-Announcement was recently made by the Missouri Pacific and Texas & Pacific Railways of intention to establish, effective June 1st, a new freight service from St. Louis to El Paso connecting with Southern Pacific No. 91 at the latter point and affording an earlier arrival at Los Angeles than has heretofore obtained. There were various reasons advanced as to the purpose of making the proposed schedule effective; however, protest under the Commissioner Agreement against the establishment of this schedule was filed by the Southern Pacific Company and, subsequently, joined in by the St. Louis Southwestern Railway. As a result of that action, the proposed schedule is being held in abeyance pending opportunity for conference between representatives of interested carriers, following which it is anticipated agreement will be reached which will be acceptable to all concerned. 7. Coordination Dismissal Wage.-As a matter of possible interest to the Committee of Directors, I am attaching copy of the agreement reached between representatives of the railroads and the Railroad Labor Executives Association in Washington during May of this year, relating to coordination allowances to employees, as well as collateral subjects. 8. Railroad Week and Joint Advertising.--As you have been previously advised, Western carriers determined to sponsor Railroad Week during 1936 and to that end an appropriation of $75,000 was made to defray expenses thereof, as well as advertising incidental thereto. A short time since announcement was made by the Association of American Railroads of intention to engage upon institutional advertising through the medium of national magazines. Numerous protests were filed by newspapers in the different parts of the country and, as result of such protests, Western carriers determined that in conjunction with the national magazine campaign of the A. A. R., Western railroads should engage upon a similar joint advertising campaign to that conducted last year, confining it to newspapers published in the Western District. A meeting of public relations and advertising officers of Western carriers will be held in Chicago on June 4th for the purpose of determining the character of advertising to be used this year, as well as the many details involved in carrying this plan forward. Regular Meeting Date of the Committee of Directors.-Pursuant to direction given at meeting of the Committee, held in New York on May 13th, inquiry was addressed to the individual members of the Committee in an effort to ascertain whether the present day and hour of meeting, namely 3:00 P. M., on the second Wednesday of each second month, was satisfactory. A large majority have responded that the time and hour is as satisfactory as any other, and, in the circumstances, it is assumed that no further effort should be made to adjust the time of meeting, but that future meetings should be held in accordance with the original program. The communication did serve, however, to call further attention to the subject of attendance at meetings, and no doubt this will be reflected in greater attendance than heretofore. Very truly yours, EXHIBIT No. 307 H. G. TAYLOR, Commissioner. SPECIAL MEETING OF THE COMMITTEE OF DIRECTORS Special meeting of the Committee of Directors was held at 3:00 p. m., (E. S. T.), Thursday, October 13, 1938, in the Board Room of the Bank of the Manhattan Company, 40 Wall Street, New York City. The following were in attendance: Mr. Stephen Baker, Mr. F. W. Doolittle, Mr. Allen P. Green, General James G. Harbord. Mr. R. E. Harding, Mr. W. A. Harriman, Mr. C. Jared Ingersoll, Mr. Stephen Birch, Mr. Francis F. Randolph, Mr. H. W. Rush, Sir William Wiseman, Mr. F. M. Wilson. Mr. W. A. Harriman acted as Chairman, and Mr. F. M. Wilson acted as Secretary thereof. The Chairman called on the Secretary for his report, which covered the following subjects dealt with since the last meeting. 1. Restrictions Covering the Furnishing of Closed Top Hopper Bottom Cars at Railroad Expense. 2. Ex Parte 104, Part 2, Terminal Allowances. Voluntary Compliance by the Railroads to make Effective the Principles Established by the Interstate Commerce Commission with Reference to Terminal Allowances. 3. Railroad Contributions to State Exhibits at the New York and San Francisco World's Fairs. 4. Inquiry of Southern and Southwestern Newspapers as to the Attitude of Western Railroads with Regard to Adjustment in the Rate Structure in Southern Territory. 5. Railroad Contribution to the Work of the Associated Southwest Country Elevators. Mr. Wilson then presented the first of two appeal cases, viz: (a) Proposal of the Wabash Railway To Establish Low Week-end Excursion Fares Between Various Terminals in Western Passenger Association Territory.— Following a full discussion of this case, it was concluded, in view of agreement by the Wabash not to give effect to the proposal until after the first of the year, that Mr. Green, representing the Directors' Committee, would discuss this case further with Mr. Pitcairn along the lines of foregoing any action which might result in breaking down the passenger-fare structure. The Directors' Committee approved the general principle that the strong passenger-carrying line in a given territory should be in agreement before reduced fares are put into effect, as it is the road most seriously affected by such reduction. In connection with the consideration of this case, a memorandum was distributed to those present showing various instances in Western Passenger Association territory where week-end excursion fares are in effect, and the Chairman requested that a copy thereof be attached to the minutes for the information of all members of the committee. (b) Proposal of the Wabash Railway To Publish $6.00 Round Trip Coach Fare from St. Louis to Kansas City, Missouri, for Special Train Movement Leaving St. Louis October 9, Returning October 12, for the Kiwanis Club.-Discussion developed the feeling that as the action contemplated by the proposal had already been fully carried out, a specific expression on the merits of this particular case would serve no practical purpose, but it was the sense of those present that a resolution should be adopted expressing the view that there should be no bidding for business on a rate basis by any line. The following resolution was, therefore, duly made and unanimously adopted: "Resolved, That without passing on the merits of the particular case under consideration, the Directors' Committee express the view that in the interest of Western Railroads as a whole, there should be no bidding for traffic on a rate basis." The meeting adjourned at 4:15 p. m. F. M. WILSON, Secretary. EXHIBIT No. 308 COMMISSIONER OF WESTERN RAILROADS, To the Committee of Directors: Following is a summary of the various matters upon which I have been engaged during the month of April 1933. 1. Proposed Inauguration of the "All Commodity" Freight Rate Between St. Louis and Denver.-This subject was briefly referred to in my letter of April 3rd. Subsequently conclusions were reached and all concerned advised accordingly. Copy of my letter of April 17th, 1933, is attached hereto for your information. 2. Proposed Cancellation of Heater Charges on Potato Shipments.-There have been but few developments in connection with this subject since my letter of April 3rd. However, meetings were held during the month of April, looking toward the adoption of a uniform policy by all carriers involved in connection with this matter and recommendations have been made, which are, of course, subject to final approval by railroads, parties to each particular tariff, that the rate on potatoes be somewhat reduced with the proviso that heater service will be mandatory and not optional between November 15th to April 1st. Further conferences will be had with the parties involved in this particular dispute shortly, after which my conclusions will be furnished in accordance with the Commissioner Agreement. 3. Organization Activities of Western Railroads in Chicago.-The activities of the Committee of Nine making a study of this subject, as reported in my previous letter, have been steadily carried forward to the end that definite arrangements have been made to house all of the Chicago organization activities of Western |