extensive hearings on H.R. 11584, during June, July, and September 1962. The Senate Committee on Commerce held hearings on S. 3242 during June, July, August, and September 1962. In our letter of July 3, 1962, B-104930, to you, we recommended favorable consideration of H.R. 11584 by your committee. We have the following comments on the various sections of H.R. 4701: SECTION 2 This section of the bill is based on part I(A)(6) of the President's message and would empower and encourage the transportation regulatory agencies to authorize experiments by common carriers in rate, classification, and documentation systems. The experiments may be initiated by carriers, shippers, or the regulatory agencies, would be voluntary, and could involve individual common carriers or intramodal and intermodal transportation systems. We favor the enactment of this section since we believe that it could serve to stimulate both carriers and the regulatory agencies to more vigorously exercise their responsibility to both Government and commercial shippers in seeking ways to constantly improve the quality of their services through utilization and adaptation to transportation of modern technical advances. We would have a particular interest in experiments concerning simplified documentation, different or simplified rate bases or freight classifications be cause they could affect our audit of transportation payments under section 305 of the Budget and Accounting Act, 1921, as amended, 31 U.S.C. 71, and under section 322 of the Transportation Act of 1940, as amended, 49 U.S.C. 66. Our Office is continually concerned with simplification of all types of Government accounting documents and has cooperated with the Department of Defense, the General Services Administration, and other agencies and Government corporations in a number of projects for the better utilization of existing means of transportation and for documentary simplification. For example, in recent months we worked with the Defense Traffic Management Service, Defense Supply Agency, Department of Defense, in their Development of Advanced Rate Techniques (DART) program. We cooperated with them in the establishment of rates on tactical unit movements of military impediments in eastern territory and southern territory which were negotiated with the carriers concerned under section 22 of the Interstate Commerce Act, as amended, 49 U.S.C. 22. We would understand that experiments authorized under section 2 of the bill still would be subject to applicable laws to the extent that the experiments might affect shipper-carrier relationships; for example, a shipper would not be deprived of the right reserved to him under existing law to challenge the reasonableness or the applicability of particular experimental rate bases and clarifications to transportation paid for by him. Section 2(b) of the bill outlines the method by which the regulatory agencies would authorize experiments after notice to the public affording interested persons opportunity to submit written views. We think that the present language leaves some doubt as to whether notice to the public is all that is required prior to authorization of an experiment, whether views of interested persons will be collected prior to the authorization, and whether effect should be given to such views in the determination of the desirability or possible value of an experiment. Control and careful supervision are provided only after the experiment is authorized; procedures and considerations prior to authorization should also be carefully planned and programed. SECTION 3 This section would amend sections 2, 216(d), 305(e) of the Interstate Commerce Act, 49 U.S.C. 2, 316(d), and 905(e), to prohibit unjust discrimination by rail, motor, and water common carriers against other carriers as to services or rates in the transportation of loaded or empty vehicles or shipping containers. The section embodies Part I(A) (4) of the President's message proposing that legislation be enacted to assure all carriers the right to ship vehicles or containers on the carriers of other branches of the transportation industry at the same rates available to noncarrier shippers. If enacted, this section apparently would have a bearing on decisions of the Interstate Commerce Commission concerning so-called piggyback services. See, for example, Substituted Freight Service, 232 L.C.C. 683 (1939), in which the Commission stated that one could not act as a common carrier by motor vehicle and a a shipper by rail as to the same shipment; and Movement of Highway Rail 201C C. 93 (1954), in which the Commission found that motor carrers could not lawfully make use of any piggyback services. cem propmed in section 3 of this bill would not affect the functions of the General Accounting Office and, in our opinion, would not afest the United States as a shipper and we therefore recommend rabe consideration by your committee. SECTION 4 of the bill provides for the establishment of through service, joint at boards and is based on a recommendation contained in part the President's message. We are in accord with the idea of interg rates and through service. However, in the interests of uniformity, The proposed amendments to section 1003 (d) of the Federal Aviation », b* „ansing on page 6, line 15, of the bill, might well be revised to nority equivalent to that contained in section 22 of the Interstate 49 US C. 22, at least to the extent that its relates to persons of the United States. Section 22 permits rail common carriers to or lande property "free or at relucel rates" for the United States, r al ppers, and has been incorporated by reference into parts II, of the Interstate Commerce Act, dealing respectively with motor å er varræærs, and freight forwarders. See 49 U.S.C. 317(b), 906(e), La the broader view we favor the amendment of section 403(b), 175 bj, to reflect similar authority in air carriers to transport perger's for the United States free or at reduced rates, „- «d azen inent of section 1003 f) provides that any joint board ie salue powers which section 216 of the Interstate Commerce Act © the 1. terstate Commerce Commission in respect to common carriers by na tor vehicle. Since section 216 of the Interstate Commerce Act e for reparation awards for unlawful rates and charges on past b. would leave shippers without any right to challenge the lawpayments on those shipments. A cross reference to section 308, 49 or additional specific langunge in proposed paragraph (e), page 7 the purpose of establishing reparation procedures, would suffice * Pospisite powers to joint boards. We note that HR. 2594, introa ala this mession, would require motor common carriers and freight pay reparations to shippers who have been charged unlawfully sad that section 7 of this bill (HR. 4701) proposes a similar reparamire with respect to air carriers subject to the Federal Aviation SECTION 5 would amend section 205(f) of the Interstate Commerce Act, 49 to authorize the Interstate Commerce Commission to make coagreements with the various States to enforce State economic and *** rating to highway transportation. We understand that the purwawton is to help elimi sate unlawful ("gray area”) trucking operae er, scriment of this section of the bill would not affect the functions Tow of our Office. It seems to be in the public interest and we would tion to its enactment. SECTION 6 »r. Implements in part legislative recommendation No. 12, pages 206 f the Interstate Commerce Commission's 76th Annual Report. It to abbetd section 222(h) of the Interstate Commerce Act, 49 U.S.C. extending the civil forfeiture provisions of the act to unlawful 1 safety violations by motor carriers and by increasing the dollar for the forfeitures. A similar bill, 8-6×2 has been introduced in this Congress at the request of the Interstate Commerce Commission. e-mal section, if erseted into law, would not affect the functions or our Offe. It seems to be in the public interest and we see no to its receiving favorable consideration by your committee. SECTIONS 7 AND 8 7 of the bill proposes to amend section 901 of the Federal Aviation CAD USC, 1471, to subject air carriers to civil liability for violations of the act and to establish various time limitations on actions by and against air carriers or foreign air carriers subject to the Act. Section 8 would amend section 1006 of the Federal Aviation Act of 1958, 49 U.S.C. 1486, to provide for the exclusion from the general procedure relative to review of Civil Aeronautics Board orders by Federal courts of appeals the review of any order concerning reparations issued pursuant to the reparations provisions contained in section 7. The subjection of regulated carriers to civil liability for violation of regulatory acts is a question that in recent years has received considerable attention from all concerned in the transportation industry. In May 1959, in T.I.M.E., Inc. v. United States, 2359 U.S. 454, the Supreme Court decided that shippers, including the United States, paying unlawful charges for motor common carrier trans portation, are with redress because part II of the Interstate Commerce Act does not contain reparations provisions similar to those in part I of the act; but in November 1962, in Hewitt-Robins, Inc. v. Eastern Freight-Ways, Inc., 371 US 84, a suit involving an unreasonable practice (carrier misrouting), the Court concluded that T.I.M.E. did not control; that whether a common law remedy survived enactment of part II of the act depends on the effect of the exercise of the remedy up on the statutory scheme of regulation; that even though the carrier misrouting resulted in the exaction of excess charges, it raised not a question of rates, but one of routes; that a remedy for misrouting was not inconsistent with the statutory scheme of regulation; and that such a remedy therefore, survived the passage of the act. Since the decision in the T.I.M.E. case, several bills have been introduced which would subject motor common carriers and freight forwarders (part IV of the Interstate Commerce Act, pertaining to freight forwarders, likewise contains no reparations provisions) to civil liability for violations of the provisions of the act. For example, see H.R. 2594, introduced by you in this session of Congress, and S. 678, also introduced in this session. That part of section 7 of H.R. 4701 which amends section 901 of the Federal Aviation Act of 1958 by adding sections 901 (c) (1) through 901 (c) (5) would provide a similar remedy for shippers who are forced to pay unlawful charges for air carrier transportation. We believe that neither the United States nor private shippers should be required to pay transportation charges to any regulated carrier without the corresponding right, in proper circumstances, to challenge the lawfulness of those payments on past shipments. The enactment of the reparations part of section 7 of this bill, along with the enactment of H.R. 2594, would broaden the uniformity in the treatment of regulated carriers for civil liability for violations of the Interstate Commerce Act and of the Federal Aviation Act of 1958. See, in this connection, our letter of March 29, 1963, to you, commenting on H.R. 2594, in which we recommend favorable consideration of that bill. We, therefore, recom mend favorable action on the reparations provisions of section 7 and of section of this bill. Se Under the present laws, similar time limitation periods are applicable to actions by and against all carriers subject to the Interstate Commerce Act. sections 16(3), 204a, 308, and 406a of the act, 49 U.S.C. 16(3), 304a, 908, and 1006a. The part of section 7 which amends section 901 of the Federal Aviation Act of 1958 by adding sections 901 (c) (6) through 901(e) (7) would provide the same limitation periods to actions involving "Air carriers," or "Foreign air car riers," subject to the Federal Aviation Act of 1958. We favor the enactment of this limitation provision since it would complete a uniform pattern of limitation of actions for all carriers regulated by the Interstate Commerce Act and for ai carriers regulated by the Federal Aviation Act of 1958. SECTION 9 This section of the bill would provide for the simplification of Governmen transportation rates and procurement and for the transportation of mail by motor common carriers. It is designed to encourage the development of simpli fied rate structures and systems for Government transportation, adaptable to automatic data processing and separate and distinct from the complex system prevailing in the case of commercial transportation. The simplified rate system would be accomplished by (1) authorizing the procurement of Government trans portation from all modes of carriers, without regard to any law requiring forma advertised bidding procedures and (2) providing for the initiation and establish ment through progressive research and development of a simplified rate structur for Government traffic. It implements a recommendation contained in par I(D)(3) of the President's message. Section 9 also would give the Post Offic 23 rammen: greater flexibility in the use of motor common carriers for the trans■ of m.... i, a provision based on a recommendation contained in part of the l'resident's message. e doar present laws the Post Office Department may use the services of amai water carriers for the transportation of mail on a tariff rather than at bed basis, we held in 39 Comp. Gen. 485 (B-141203, Dec. 30, 1959, «'! aster General), that it had not such authority with respect to the tation of mail by motor common carrier. The deckcon was based in aŭ examination of the legislative history of section 321 (a), title III of quirtation Act of 1940, as amended, 49 U.S.C. 65(a), which does not a. vibent to include transportation of mail by motor common carrier. trary, we found that mail transportation services are covered by matuton which sets out detailed criteria and requirements concerning sa ai di methods of its distribution and transportation. We stated in the that, in our opinion, an extension by statutory construction of the rovided by the last proviso of 49 U.S.C. 65(a) to mail transportation was not warranted and that if such an exception is found necessary or anetdatory legislation should be obtained. s part of HR. 4701 is to be favorably considered, we believe that some * the term of the contracts which the Postmaster General would csed to negotiate is desirable: It would compel management to take aat specified intervals to renew, modify or terminate contracts for mail Namai, e servies President postal laws contain time limitations on con* tali, transportation. For example, see title 39, U.S. Code, sections - of simplifying the common carrier rate and classification system for of adapting it more readily to the requirements of automatic data leserving of serious study and development. Perhaps as important, • the need to make this system more understandable and more capable •nt application for the user of common carrier transportation service. day complexities impair its usefulness in business and Government for romesar h, and other purposes, *rat proviso in section 9(a) (2) of the bill requires a determination by the • rator of General Services or the Secretary of Defense that a prospective md rate "structure may reasonably be expected to result in administrative ssportation costs to the United States lower or not substantially higher * iếngve than costs normally applicable," (Page 18, lines 12 16.) We 4 * phrase "or not sighstantially higher in the aggregate" may be too • and promosibly should be changed to reflect the concept that normally i se transportation costs on given shipments are usually determinable from ante, ured to be published and filed with the regulatory agency concerned. SECTIONS 10 THROUGH 13 Lots of the bill, which are based on a recommendation contained in 5) of the President's message, propose to transfer to the Department the railroad loan guarantee authority of the Interstate Commerce Provisions also are incinded for the continuance of actions taken Pus.on unless or until changed by the Secretary of Commerce, and transfer of persons, property, records and unexpended appropriations “a_agency to the Department of Commerce. We note that administration raft loan guarantee authority set forth in the act of September 7, Law x3 307, 71 Stat. 624, was transferred from the Civil Aeronau *** to the Secretary of Commerce by the act of October 15, 1962, Public **** 31 76 Stat. 936, and that section 5(b) of Public Law 87-820, contained Neretary shall make available to the Comptroller General of the United alformation with respect to the loan guarantee program under this Comptroller General may require to carry out his duties under the and Acounting Act, 1921." a review of the Interstate Commerce Commission's administration of Parantee program we were denied access to certain records which **tej were necessary for us to make an adequate, independent, and objec tation of the administration of this program. We furnished our $119, July 18, 1962), on this denial to the chairman of the House Interstate and Foreign Commerce, the Special Government In1-6 *ufwommittee of the House Committee on Government Operations, the Senate Committee on Commerce, and the Subcommittee on Constitutions Rights, Senate Committee on the Judiciary. We believe that determinations as to whether loans should be guarantee under part V of the Interstate Commerce Act, 49 U.S.C. 1231-1240, or a successo act, are executive determinations, which contingently commit the Governmen to the expenditure of public funds and are subject to audit by our Office. Although we believe existing laws are adequate to require the cooperation o the agency involved, in view of the denial of access to records on the loa guarantee program under part V of the Interstate Commerce Act, we strongl urge that a provision similar to section 5(b) of Public Law 87-820 be include as subparagraph (3) in section 10(i) of this bill. We also note that section 10 would not expressly grant the Secretary o Commerce or the Comptroller General the right to examine pertinent book records, and documents of the applicant carriers. We believe that access t records of the applicant carriers is necessary for the adequate administratio and audit of a loan guarantee program and we therefore suggest that the bi be amended by adding a section similar to section 393 (b) of Public Law 87-44 76 Stat. 66, which may read : "The Secretary and the Comptroller General of the United States, or any their duly authorized representatives, shall have access for the purpose of aud and examination to any books, documents, papers, and records of the recipier carrier that are pertinent to assistance received under this section." The transfer of the Commission's loan guarantee authority to the Departmen of Commerce would not affect the functions or operations of our Office. Enac ment of the section seems to be in the public interest because it will remov from the Interstate Commerce Commission promotional transportation activiti possibly better suited for administrative purposes in an executive agency an we see no objection to its receiving favorable consideration by your committe In summary, subject to the suggestions indicated above, we recommend favo able consideration of the bill by your committee. We plan to have a rep sentative of our Office testify on H.R. 4701, if arrangements may be made f his appearance on the schedule for hearings beginning on April 30, 1963. Sincerely yours, JOSEPH CAMPBELL, Comptroller General of the United States. GENERAL SERVICES ADMINISTRATION, Hon. OREN HARRIS, Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. CHAIRMAN: Your letter of March 16, 1963, requested the views of t General Services Administration on H.R. 4701, 88th Congress, a bill "To provi for strengthening and improving the national transportation system, and f other purposes.” This legislative proposal which the President transmitted to the Congress 1 letter dated March 5, 1963, would implement certain recommendations contain in his message to the Congress of April 5, 1962, concerning the transportati system of our Nation. Except for certain technical adjustments the bill identical with H.R. 11584, 87th Congress, on which your committee held exte sive hearings last year. H.R. 4701 would provide specific actions for strengthening the common carri system and for improving competitive conditions. Section 9 of the bill wou implement a proposal contained in the legislative program of the General Servic Administration for the 88th Congress, 1st session. This section, which des with the simplification of Government rates and the procurement of transp tation services by the Government, is of particular interest to GSA as this Agen is concerned with transportation and traffic management on behalf of executi agencies from the viewpoint of a user of transportation services pursuant the Federal Property and Administrative Services Act of 1949, as amended ( U.S.C. 481). Since H.R. 4701 would benefit users of transportation services by strengtheni and improving the national transportation system, the General Services Admi istration strongly recommends enactment of this legislative proposal. |