down or well braced and were susceptible of additional breakage in the event the cars were shoved around in the yards during the night. This subject was presented to the Association and direction given that a tariff rule should be promulgated which would break up this practice, statement having been made that while the present tariff did not authorize such handling, neither did it prohibit it. The National Perishable Freight Committee promulgated such a tariff rule which, under the rules of their Association, must be unanimously approved or fail of passage. Objection was raised by one of the lines, resulting in the defeat of the proposed rule. The subject was thereupon presented for further consideration, at which time it was pointed out by representatives of several roads that this practice had been indulged in to a greater or lesser extent over a period of the last twenty-five or thirty years, and that it amounted to practically a necessity, particularly at smaller stations, and it was the consensus of opinion that the benefits to shippers were such that agreement could not be had to abandon the practice. I was, therefore, directed to formulate reply to director Bonneville along these lines. 13. Automobile Loading Device Cars.-While all railroads have spent a great deal of money in equipping automobile cars with loading devices, the Automobile Manufacturers Association seem to feel as though their entire peak demands should be met with device equipped cars and suggest, as an alternative, that the railroads agree to furnish two non-device-equipped cars in event of failure to supply a car so equipped, the freight charges on the two nondevice cars to be on basis of total actual weight, subject to a minimum of 10,000 lbs. on the two cars. This proposal was submitted to Eastern Traffic Executives by General Traffic Manager Marvin, of the Automobile Manufacturers Association, on December 17th, with copy to me, expressing the hope that Western lines would be agreeable to joining in the alleged emergency tariff. Mr. Marvin was advised by the Eastern Traffic Executives that, while they were very anxious about the situation, they were unwilling, with the information at hand, to approve the suggested rule, adding that the A. A. R. would urgently repeat recent instructions to rush automobile device cars home and every effort made to prevent their use in other service. Following this action, I advised Mr. Marvin that the Western roads would equally cooperate with the Association of American Railroads in their endeavor to insure a satisfactory car supply to the industry. 14. Advertising in the President's Birthday Ball Magazine, 1937.-The National Committee, in charge of the Birthday Ball for the President, addressed various Western road presidents under date of January 12th, advising that the Baltimore & Ohio, New York Central, and the Pennsylvania Railroads had agreed to take a page each in the President's Birthday Ball Magazine at $1,000.00 per page. I immediately circularized member roads for an expression of their views and at the same time addressed President Pelley, stating that it occurred to me this was a subject which could very properly be handled for all railroads by the A. A. R., and suggesting that he might think well of taking suitable space in the magazine for account of all lines and thereby save all concerned some money. Mr. Pelley replied that he had taken a full page ad in the Washington magazine in such manner as to indicate that it was placed on behalf of all member roads, and could see no point in individual advertisements of Western roads. I thereupon inquired of Chairman Loree, of the Eastern Presidents' Conference, whether or not it was possible for the three Eastern roads named to withdraw their proposed individual ads, but it developed that the B. & O. had already definitely committed themselves on the basis that it was not a question of advertising, but, rather, a contribution toward prevention of infantile paralysis, and the New York Central and the Pennsylvania felt it necessary for their commitments to likewise stand. 15. Final Report on Railroad Week, 1936.-Final analysis of Railroad Week celebration in 1936 indicates conclusively that that affair was even more successful than the one held in 1935. Enormously valuable publicity of the railroad industry as a whole was secured in newspapers throughout the West-publicity of a kind that could not be bought at any price, brought about in large measure, of course, by the quite considerable expenditure in putting on the joint advertising program. While the value to the industry of a celebration of this kind is recognized by all lines, yet it is a fact that to successfully stage Railroad Week requires the wholehearted cooperation of the local merchants, particularly at the smaller points. There is no question but that these local merchants are benefited in a business way by such celebrations; nevertheless, it is claimed by some that there is an appar ent reluctance on the part of some of the merchants to cooperate every year as they did last year and the year before, and, therefore, decision has been reached that Western roads would be well advised to omit Railroad Week for 1937. 16. Coordination Matters.-I informed you in my letter of September 10th that further studies were being made of proposed coordination of facilities by the Western carriers to determine whether any economies could be accomplished on those projects which had been held in abeyance because of labor provisions contained in Section 7 (b) of the Emergency Railroad Transportation Act, 1933. Up to January 31, 1937, reports were received from Western lines on 122 of these projects. Twelve were reported as having been put into effect either prior to or after expiration of the Emergency Act. The Western lines have reported that, under these twelve arrangements, they would save approximately $210,000 per year. Reports on 109 coordination projects indicated that they could not be put into effect with any advantage to the interested lines. Primarily, this is due to the fact that the original reports, made under direction of the Federal Coordinator, were based on the subnormal flow of traffic in 1933, did not take into consideration ownership of, or compensation for use of, property or compensating employes for loss of their positions. These new reports show in many instances that the present-day volume of traffic requires use of all present facilities and retention of all present employes; and, in some instances where a few employes might be released from service, the necessary compensation to them under the so-called Washington Agreement with labor would equal or exceed any possible economies. I regret that my own illness, coupled with the change in personnel in my office organization, necessitated a temporary suspension of regular monthly reports, but I do not anticipate further laxity in this respect. Very truly yours, H. G. TAYLOR, Commissioner. EXHIBIT NO. 322 To the Committee of Directors: COMMISSIONER OF WESTERN RAILROADS, For your information, I am outlining below the activities upon which I have been engaged during the month of September 1934. 1. Establishment of 13'50'' Passenger Schedule Between Denver and Salt Lake City via Union Pacific Railroad.—As reported in my letter of September 26, 1934, this case was further considered in view of evidence and information which had not been completely presented at the previous conference, and my report and conclusion sustained the position of the Union Pacific Railroad in the establishment of passenger schedules on the basis of 13 hours and 50 minutes westbound and 15 hours eastbound between Denver and Salt Lake City. 2. Industrial Track Extension by Missouri-Kansas-Texas Railroad at San Antonio, Texas.-As reported in my letter of September 4, 1934, covering activities for the month of August, I had hoped to be able to hold a conference between. interested parties with regard to this subject. However, this was impossible and date for conference has now been set for October 12th at St. Louis, for the purpose of developing all of the pertinent facts in connection with this proposal. Question has been raised by the Missouri-Kansas-Texas Lines with regard to the application of the Commissioner Agreement to a controversy of this nature and that feature will be given consideration at the time my report and conclusions are rendered thereon. 3. Intrastate and Interstate Grain Rates-State of Illinois.-Full information in connection with this subject was secured during the month of September and my report and conclusion to the effect that the reduced rates should be continued in effect, but not beyond December 31, 1934, and that the Alton Railroad should refrain from their announced intention of taking individual action pending a definite conclusion as to what, if any, action will be taken beyond December 31st to meet barge line competition, was fully presented in my letter to you of October 1, 1934. 4. Freight Train Schedules Between Chicago, St. Louis, and Denver.-In my letter of September 4, 1934, I presented in some detail the situation with regard to freight schedules between Chicago and Denver. Conference upon this subject was held on September 6th in Chicago and at that time, in an effort to arrive at agreement with regard to these schedules, the following resolution was unanimously adopted by Colorado delivering lines: "Resolved, That on business, except livestock and live poultry, arriving at Denver on trains scheduled to arrive after 7:00 A. M., deliveries will not be made locally or to conections before 5: 30 P. M." In view of the agreement there reached, the necessity for conclusions by me with regard to this controversy was eliminated, and it was believed that the action taken would have the effect of placing all Denver delivering lines upon a parity. Subsequent to the adoption of the resolution quoted, shippers at Denver have been actively protesting the application of this rule to shipments arriving at Denver after 7: 00 A. M., and considerable criticism had been directed against the delivering lines by newspapers and others. As a result of this activity on the part of shippers, a further conference between Colorado lines was called for Chicago on October 4, 1934, looking toward the possibility of developing some plan which would be acceptable to the shippers and maintain a parity of freight service into Denver without additional cost to the carriers involved. 5. Reduction in Coal Rates from Southern Wyoming and Utah Points To Territory in the Pacific Northwest west of Boise, Idaho.-As outlined in my letter to you of September 19, 1934, conference was held with regard to the above proposal and in my conclusion the position of the proponent line was disapproved, following which, action was promptly taken looking toward the withdrawal of the reduced coal rates. 6. Air Conditioning.-At a meeting of member roads of the Western Association of Railway Executives held on September 12, 1934, it was determined that each road in Western territory should advise this office regarding the plans which it might have for air-conditioning passenger equipment during 1935, this information in turn to be consolidated and presented to a meeting of the Chief Executives of Western carriers, looking toward the possible development of a uniform policy to be followed in connection with this matter. Such statement was prepared and presented to a recent meeting of the Association. The programs of some of these carriers were quite extensive and cover practically all competitive trains, as well as all types of passenger-carrying equipment, and, as a matter of information, I am quoting below the resolution adopted with regard to this matter at that time: "Resolved, That every road be free to adopt such program as it desires with relation to air-conditioned and air-cooled passenger-carrying equipment, and that the Chairman be relieved from any further responsibility in connection with this matter, except that each road shall advise the Chairman, and he in turn shall transmit such advice to Member Roads, of any additional programs over and above those filed with him within thirty days from the date of this meeting; such advice of additional programs thereafter to be filed sixty days in advance of date the additional air-conditioned equipment is to be placed in service; notice served by Western carriers shall also indicate the type of equipment to be air-conditioned and trains upon which cars are to be used. Nothing herein shall be construed to restrain any railroad from utilizing its air-conditioned cars under this program from time to time as it sees fit." It was also determined that investigation should be made regarding the establishment of a pool of air-conditioned standard sleeping cars by the Pullman Company, and a committee will be appointed for the purpose of developing this subject further and making recommendations. 7. Drought Relief Rates in Western Territory.-As outlined in my letter of September 4, 1934, Western carriers on August 28, 1934, declined to further extend drought relief rates in Western territory beyond September 4th, for the reasons given. Request was received from the Department of Agriculture for a consideration of this subject and accordingly, on September 12th, representatives of Western carriers again convened and the position of the Department of Agriculture, relating to such rates, was presented by Dr. Mordecai Ezekiel. Subsequent to this presentation, Western roads rescinded their former action in some degree and adopted the following resolution: "Resolved. That it is the sense of this meeting that some reduction should be made on certain essential stock and poultry feeds into the drought-stricken areas and between points therein, and the Western Traffic Executive Committee is hereby instructed, through a committee or committees, to confer with representatives of the United States Department of Agriculture and the Agricultural Departments of the several states in the drought-stricken areas with authority to work out the details and publish the rates." Accordingly, Western traffic executives conferred with representatives of the Department of Agriculture and agreed upon a reduced basis of rates for fodder and forage for livestock, making no reduction, however, on grain and concen trates. Further requests for reduced rates on specific commodities will doubtless be received from time to time and will be given prompt consideration as and when presented. However, it is felt that by confining such reductions to fodder and forage and other livestock roughage of a similar character that much of the loss sustained through reductions previously in effect will be eliminated. The responses to my letter of September 18, 1934, making inquiry with regard to the next meeting of the Committee of Directors, indicate a preponderance of opinion that such meeting should be held in November and, accordingly, in the near future call for regular meeting of the Committee of Directors will be issued for November 14th in New York City. Very truly yours, H. G. TAYLOR, Commissioner. EXHIBIT No. 323 REGULAR MEETING OF THE COMMITTEE OF DIRECTORS Regular meeting of the Committee of Directors was held at 3:00 P. M. Wednesday, November 14, 1934, in the Board Room of the Bank of the Manhattan Company, 40 Wall Street, New York City. The following were in attendance: Stephen Baker, E. N. Brown, Walter W. Colpitts, F. W. Doolittle, Allen P. Green, Gen. James G. Harbord, Will H. Hays, C. Jared Ingersoll, Arthur Curtiss James, Francis F. Randolph, Geo. T. Slade, H. G. Taylor, Commissioner. In the absence of the Chairman, Mr. Arthur Curtiss James was appointed Chairman of the meeting and Max Glenn acted as Secretary thereof. At the request of the Chairman, the Commissioner reported upon the following subjects, with which he had dealt since the meeting on July 11, 1934: 1. Proposed application of intrastate grain rates to interstate traffic by Alton Railroad Company. 2. Proposal of Illinois Central Railroad to use Railway Express Agency for handling L. C. L. merchandise in passenger trains at freight rates. 3. Establishment of 13 hour 50 minute passenger schedule between Denver and Salt Lake City via Union Pacific Railroad. 4. Industrial track extension by Missouri-Kansas-Texas Railroad at San Antonio, Texas. 5. Protest against establishment by Union Pacific Railroad and Chicago & North Western Railway of Chicago and Denver and St. Louis-Denver freight train schedules, providing 11:30 A. M. arrival at Denver. 6. Reduction in coal rates from Southern Wyoming and Utah points to the Pacific Northwest. Proposed by Union Pacific and protested by Great Northern and Northern Pacific. PROPOSALS WITHDRAWN 7. Sixth morning St. Louis arrival of Colton Block traffic via Missouri PacificProtested by Southern Pacific. In view protest, change in schedule not made. 8. Proposal to reduce rates on sugar from New Orleans and Sugarland, Texas, to Springfield, Mo. Proposal made by Frisco, but in view opposition was withdrawn. 9. Change in freight schedule of C. R. I. & P. Ry. between Alexandria, La., and Fordyce, Ark. Opposed by Missouri Pacific, but upon conference and development of facts, indicating such change would not injure Missouri Pacific as much as anticipated, protest withdrawn. 10. Proposed overnight L. C. L. merchandise from Chicago to Des Moines, Ia., via C. & N. W. Ry. Upon learning of opposition of competing lines, this proposed service withdrawn. 11. Establishment of overnight merchandise schedules between Chicago and the Twin Cities-Service now withdrawn pending study of methods of meeting highway competition between those points. 12. Formation of Association of American Railroads. 13. Adoption of inspection service on perishables, Chicago area, to expedite handling perishable freight claims. 14. Activities of Department of Highway coordination-Legislative. 15. Activities of Regional Coordinating Committee. (a) C. & E. I. case. (b) Status of merchandise traffic survey and car pool plan. (c) Other Coordinator Matters. 16. Air Conditioning program for 1935. In connection with the proposed industrial track extension by the MissouriKansas-Texas Railroad at San Antonio, notice had been served upon the Com missioner that that company did not concur in the conclusions reached and its representative on the Committee of Directors stated further the position of the Missouri-Kansas-Texas Lines to the effect that an extension such as is proposed does not come within the provisions of the Commissioner Agreement. However, assuming that it does, the Missouri-Kansas-Texas Lines has an obligation to perform in the construction of such track, owing to an understanding had with the owner of the property at the time right-of-way was purchased: However, it was desired to discuss the position of the Missouri-Kansas-Texas Lines further with the Chief Executive and the Board of Directors, following which advice would be given the Commissioner as to their final position in the matter. Pending such determination and the possibility of conference between the Commissioner and representatives of the Missouri-Kansas-Texas Lines, action by the Committee of Directors was withheld. There being no further business to come before the meeting, same was duly adjourned at 4:30 P. M. MAX GLENN, Secretary. EXHIBIT No. 324 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 February 1937: 1. Proposal of the A. T. & S. F. Ry. Co. To Establish 1% Cent Coach Fares Intrastate in California.-There has been no change in the status of this controversy since my last report. 2. Freight Schedules to the Southwest via the St. Louis and Kansas City Gateways.-There have been no further developments on this question since my last report. 3. Demands for the Furnishing of Special Equipment.-The committee is proceeding with its studies, but has not as yet rendered a report thereon. 4. Problems of Employment.-There is nothing to report on this item at the present time. 5. Possible Inclusion of Bus and Truck Operations Performed by Signatory Carriers Within the Provisions of the Commissioner Agreement.-Pursuant to resolution adopted at meeting of the Committee held in New York on February 10th, this subject is docketed for reconsideration at meeting of the Western Association of Railway Executives to be held on March 5th, and I shall advise you in my next report of decision reached. 6. Protest on Proposed Newspaper Rate of $1.40 per 100 Pounds Between Chicago and California Points.—I sent you copy of my report on this question under date of February 3rd, C-71-2, and verbally outlined other ramifications involved at meeting on February 10th. However, for the record, I wish to advise that the C. M. St. P. & P. have agreed to my suggestion of splitting their line at the Missouri River for the purpose of establishing two 90¢ rates on newspapers moving from Chicago to Seattle, on the condition that the Chicago Great Western would increase their 50¢ rate from Chicago to the Twin Cities to 90g, making $1.80 Chicago to Seattle via the Twin Cities gateway. When it was explained to the Great Western people that the $1.40 combination rate via the Twin Cities was a constant source of danger to the existing freight rate on magazines, they readily assented to increasing their Chicago-Twin Cities rate to 90%, thereby making a minimum baggage rate from Chicago to Seattle via any route of $1.80. The Missouri Pacific advise that they will abide by the Commissioner's report. 7. Advertising in the President's Birthday Ball Magazine-1937.-This subject was further considered by the Western Association of Railway Executives at its meeting on February 5th and the consensus of opinion was that advertisements by individual lines should be prohibited, and I was directed to submit the question to the Board of Directors of the Association of American Railroads, with request that they consider the desirability of the adoption of this view as the policy to be followed by all member lines. 8. Subscriptions and Railroad Exhibits-New York World's Fair. 1939.— Proposal has been made to the Board of Directors of the Association of American 84949-44-pt. 12-9 |