LARGE CLASS I MOTOR CARRIERS OF PROPERTY SELECTED EARNINGS DATA

QUARTER ENDED JUNE 30

(000 OMITTED)

TWELVE MONTHS ENDED JUNE 30

SHEET 11 OF 12

1/ Net Carrier Operating Income Difference between carrier operating revenues and carrier operating expenses,
2/ Net Income Net income, after including fixed charges, non-operating Income, income taxes, unusual or infrequent items, earnings attributable to
discontinued segments, extraordinary items and cumulative effect of changes in accounting principles, but before extraordinary charges for writo-
down of operating rights and extraordinary credits for the tax effect of such write-downs.
Revenue tons hauled reflects common and contract carrier service.

Return on Equity Ratio of net income before extraordinary charges for write-down of operating rights, to shareholders' equity less intangible property
at end of previous calendar year. The symbol -0- indicates a deficit in net income and/or shareholders' equity. The Commission, by decision of
November 27, 1978, (I & 8 Docket No, M-29772) decided that return on shareholders' equity, less intangibles, is the most appropriate ratio for
determining revenue need in motor carrier general increase proceedings; this decision, however, is presently being reconsidered by the Commission,
6/ The 100 carriers listed are generally the largest Class I U. S. motor carriers of property based upon 1981 revenues, with the following exceptions,
Contract carriers are not included because the data filed by these carriers were substantially reduced in scope, in accordance with the Commission's
revised reporting regulations, effective January 1, 1980. Also, the two largest motor carriers in terms of revenue generated, United Parcel Service,
Inc, and United Parcel Service, Inc. (New York), are no longer included in this report because their operations are generally dissimilar from the
carriers shown in this report and other carriers in the motor carrier industry. Several carriers which are among the 100 largest are not included
in this report because their data had not been received when this report was prepared. Those carriers were replaced by large carriers which rank
Just below the 100 largest in size in order to arrive at a listing of 100 carriers,

1/ On April 18, 1981, Dohrn Transfer Company was merged into Hall's Motor Transit Company. For purposes of comparability, the financial data shown for
Hall's for periods prior to the quarter ending June 30, 1981, were obtained by combining the results of both Dohrn and Hall's.

Mr. ANDERSON. Please proceed.

TESTIMONY OF REESE H. TAYLOR, JR., CHAIRMAN, INTERSTATE
COMMERCE COMMISSION, ACCOMPANIED BY RAY ATHERTON,
CHIEF OF PROGRAMS BRANCH, OFFICE OF COMPLIANCE AND
CONSUMER ASSISTANCE, AND JAN ROSENAK, LEGISLATIVE
COUNSEL

Mr. TAYLOR. Thank you, Mr. Chairman.
Mr. ANDERSON. You come well prepared.

I might say, before turning the floor over to you, that I wanted to report to you that your trip to Los Angeles some months ago is still bearing good fruit. Recently, I spoke to a meeting of truckers in northern California. They were talking about you up there. We had at least three northern California trucking executives saying how nice it was to meet with you in Los Angeles. When you get San Francisco business executives to say that about Los Angeles, you know you have made points.

A little before the election, a gentleman from the railroad industry commented how nice the visit with you was. When I spoke to the Counsel of Teamsters in Los Angeles, during the campaign, one of the nice remarks of the gentleman that introduced me, was that I had you come out to California.

I want you to know that when you have the truckers, the railroaders, and Teamsters complimenting you, you must have done something right. We will have to get you back out there again.

Mr. TAYLOR. Thank you, Mr. Chairman; I would like to go out there any time.

I spent about a half day in southern California looking at some of the Mexican problems we have had. I am looking forward to the opportunity during the waning days of the session, if you have the time, to come over and discuss some of those problems with you. Mr. ANDERSON. Have you made a report of that?

Mr. TAYLOR. I have some interim staff reports at this point in time. They are trying to firm up some suspicions we have about some activities that are going on, and I would like to fill you in on that.

Mr. ANDERSON. Yes, we would like to have that very much.

Mr. TAYLOR. Also, in line with that, I had the opportunity to address the American Movers Conference in San Diego in October, and I brought along some copies of my speech and some of the things that I am going to talk about today that were elaborated on in that speech.

If we might, I would like to have that made a part of the record. Mr. ANDERSON. Without objection, so ordered. [The information follows:]

IT'S A GREAT PLEASURE FOR ME TO BE HERE TODAY. I HAVE REALLY BEEN

LOOKING FORWARD TO THIS OPPORTUNITY TO SHARE WITH YOU HERE IN THE BEAUTIFUL

CITY OF SAN DIEGO - SOME THOUGHTS ON MATTERS OF CONCERN TO BOTH THE MOVING

INDUSTRY AND THE I.C.C

HOWEVER, BEFORE LAUNCHING INTO MY REMARKS ABOUT THE PRESENT, AND A LITTLE

CRYSTAL BALL GAZING AS TO THE FUTURE, PERHAPS A BRIEF REFERENCE TO SOME RECENT

HISTORY WILL PLACE CURRENT CIRCUMSTANCES IN A MORE MEANINGFUL PERSPECTIVE.

AS I'M SURE MOST OF YOU KNOW, THERE WAS A PERIOD OF TIME, WHICH LASTED

UNTIL JUST A SHORT TIME AGO, WHEN THE MOVING INDUSTRY AND THE I.C.C. WERE

REALLY AT LOGGERHEADS WITH REGARD TO INDUSTRY PRACTICES AND I.C.C. RULES AND

REGULATIONS.

FURTHERMORE, MANY OF THE PROBLEMS WHICH APPARENTLY GAVE RISE TO THE

CONTENTION WERE NOT COMPLETELY RESOLVED BY THE HOUSEHOLD GOODS TRANSPORTATION

ACT. NEW REGULATIONS IMPLEMENTING THE ACT WERE IMMEDIATELY CHALLENGED IN THE

COURTS, AND ALTHOUGH THEY HAVE FINALLY BEEN IMPLEMENTED, THESE NEW REGULATIONS

HAVE NOT BEEN IN EFFECT FOR A SUFFICIENT PERIOD OF TIME TO ENABLE EITHER THE

INDUSTRY OR THE COMMISSION TO MAKE A THOROUGH ASSESSMENT OF THEIR USEFULLNESS,

WORKABILITY, OR NECESSITY.

HOWEVER, IF THERE'S ONE THING WE HAVE LEARNED FROM THIS ALL-TOO-RECENT

PERIOD OF PROLONGED AND SOMETIMES IMPASSIONED CONTROVERSY, IT'S THE FACT THAT

FAR MORE CAN BE ACCOMPLISHED BY WORKING TOGETHER ON SOLUTIONS TO OUR PROBLEMS

THAN BY STRIKING OUT SEPARATELY IN THE CONTEXT OF AN ADVERSARY RELATIONSHIP.

WITH THIS LESSON IN MIND, WE AT THE I.C.C. HAVE BEEN GENUINELY STRIVING,

DURING MY TENURE AS CHAIRMAN, TO BROADCAST THE MESSAGE THAT ALTHOUGH THE

COMMISSION HAS RESPONSIBILITIES TO MANY DISPARATE GROUPS, OUR PRIMARY

RESPONSIBLITY TO ALL GROUPS, IN THESE DIFFICULT YEARS, IS TO PROPAGATE THE

REALIZATION THAT CHALLENGING TIMES PRODUCE REAL OPPORTUNITIES FOR THOSE THAT ARE ALERT ENOUGH TO SEIZE UPON THEM.

TOWARD THIS END, WE HAVE BEEN SEEKING TO PROVIDE A MEASURE OF INSPIRATION

TO ALL THOSE THAT COMPRISE OR DEAL WITH OUR NATION'S SURFACE TRANSPORTATION

SYSTEM.

WE ARE NOW MORE CONVINCED THAN EVER THAT "INSPIRATION" IS WHAT IT WILL

TAKE TO SEE OUR SURFACE TRANSPORTATION INDUSTRIES SAFELY THROUGH THE TURBULENT,

TRANSITIONAL PERIOD WE ARE NOW EXPERIENCING.

LEST ANY OF US FORGET, IT WAS TRANSPORTATION THAT BUILT AMERICA - WITH

ROADS AND RAILS AND CANALS AND PIPELINES CARRYING ECONOMIC GROWTH INTO EVERY

CORNER OF OUR REPUBLIC.

THE GREAT PROGRESS WE HAVE ACHIEVED IN THIS COUNTRY HAS COME FROM

INSPIRATION-NURTURED FREE ENTERPRISE AND THE DYNAMIC TRANSPORTATION NETWORK IT

SPAWNED.

HAVING NOT LOST SIGHT OF THIS HERITAGE, WE AT THE COMMISSION ARE NOW

TRYING TO ENGENDER A REBIRTH OF INSPIRATION THAT WILL SUSTAIN ALL OF US IN OUR

CONTINUING PURSUIT OF DEREGULATORY OBJECTIVES, AS WE PROGRESS IN A MANNER AND

AT A PACE DESIGNED TO MINIMIZE DISRUPTION FOR ALL CONCERNED WHILE THE ONCE

HEAVY HAND OF REGULATION IS BEING GRADUALLY RELAXED.

THE BOTTOM LINE IS THAT TO THE EXTENT THE I.C.C. HAS BEEN PART OF THE

PROBLEM IN TIMES PAST, WE ARE NOW FERVENTLY DEDICATED TO BECOMING PART OF THE

SOLUTION.