AS CHAIRMAN, I AM DOING ALL IN MY POWER TO MAKE THE COMMISSION A SHOWCASE OF HOW A GOVERNMENTAL AGENCY CAN ACHIEVE REGULATORY REFORM WITHOUT DISLOCATING THE INDUSTRIES IT HAS REGULATED FOR SO MANY YEARS. BUT INSPIRATION ALONE IS NOT ENOUGH, FOR SURELY YOU WILL AGREE THAT THE CHANCES OF GAINING AN OBJECTIVE ARE USUALLY DIRECTLY PROPORTIONAL TO THE DEGREE OF COMMITMENT DEVOTED TO ACCOMPLISHMENT OF THE PROJECT. CONSEQUENTLY, WE AT THE I.C.C. HAVE MADE A FIRM COMMITMENT TO THE ACHIEVEMENT OF REGULATORY REFORM WITH FAIRNESS TO ALL CONCERNED. TO ME, FAIRNESS DEMANDS THAT WE DISCHARGE OUR REGULATORY RESPONSIBILITIES BY APPLYING THE LAW IN A MANNER CONSISTENT WITH THE INTENT OF CONGRESS, AND WITHOUT ADMINISTRATIVE AMENDMENTS THAT IGNORE, SUBVERT, OR TWIST OUR LEGISLATIVE MANDATES. THE POSTURE WE HAVE TAKEN IS THAT WHEN SOME FURTHER CHANGE IS WARRANTED IN THE PRESCRIPTION GIVEN US FOR REGULATORY REFORM, WE'LL GO TO CONGRESS AND REQUEST A CHANGE. AND FINALLY, THERE'S ONE MORE IMPORTANT INGREDIENT OF OUR CURRENT EFFORTS THAT CANNOT GO UNMENTIONED, AND THAT'S THE ELEMENT OF COOPERATION. AS ALL OF YOU KNOW, ONE OF THE MOST DIFFICULT CHALLENGES WE FACE AT THE COMMISSION IS RESOLVING DISPUTES BETWEEN THE CONFLICTING AGENDAS OF MANY INTEREST GROUPS. IT IS UNFORTUNATE BUT TRUE THAT COOPERATION IS DISCUSSED MORE THAN IT IS PRACTICED. NEVERTHELESS, IN MY VIEW, COOPERATION IS ABSOLUTELY ESSENTIAL TO THE SUCCESSFUL ACCOMPLISHMENT OF OUR ENDEAVORS AT THE I.C.C., BECAUSE THE ACHIEVEMENT OF OUR DEREGULATORY GOALS IS LARGELY DEPENDENT UPON DEVELOPING A NEW SPIRIT OF COOPERATION BETWEEN GOVERNMENT AND INDUSTRY, AND BETWEEN THE I.C.C AND THOSE INDUSTRIES WHICH ARE SUBJECT TO OUR JURISDICTION. IN REFLECTING THE ADMINISTRATION'S APPROACH, WE MUST BRING TO AN END THE ADVERSARY RELATIONSHIPS THAT HAVE EXISTED FOR SO LONG BETWEEN THE PUBLIC AND PRIVATE SECTORS. THE FACT OF THE MATTER IS, WE SIMPLY CAN'T AFFORD CONTINUING ANIMOSITY IF WE HAVE ANY HOPE OF SUCCESSFULLY DEALING WITH THE CHALLENGES NOW CONFRONTING OUR SURFACE TRANSPORTATION INDUSTRIES, MANY OF WHICH STEM FROM THE SUBSTITUTION OF COMPETITION FOR REGULATION. DON'T GET ME WRONG. INCREASED COMPETITION IS ALSO ONE OF OUR MOST IMPORTANT OBJECTIVES. BUT A CONTINUING DIALOGUE BETWEEN COMPETING MODES IS ESSENTIAL FOR THE SOLUTION OF COMMON PROBLEMS. NOW LET ME SUGGEST THAT AS A HELP IN REMEMBERING THE THREE COMMON ELEMENTS WE'VE JUST DISCUSSED, TRY KEEPING IN MIND THE COMMISSION'S THREE INITIALS, WITH THE RESULT THAT IF YOU LET THE "I" STAND FOR INSPIRATION, THE FIRST "C" FOR COMMITMENT AND THE SECOND "C" FOR COOPERATION, YOU'LL HAVE THE THREE WORDS WHICH REPRESENT THE CORNERSTONE OF OUR EFFORTS TO ENSURE A BETTER SURFACE TRANSPORTATION SYSTEM IN THE YEARS AHEAD. TODAY, MY REMARKS WILL FOCUS UPON COOPERATION. IN EXCHANGING THE MAILED FIST OF CONFRONTATION FOR THE EXTENDED HAND OF COOPERATION, WE ARE ACKNOWLEDGING THE REALITY OF THE 1980'S. THAT REALITY TELLS US THAT BECAUSE THERE ARE LIMITS TO WHAT GOVERNMENT CAN ACCOMPLISH, TRADITIONAL RELATIONSHIPS BETWEEN GOVERNMENT AND THE PRIVATE SECTOR ARE UNDERGOING SUBSTANTIAL CHANGE. THE HOUSEHOLD GOODS ACT RECOGNIZED THE NEW REALITY BY OPENING UP OPPORTUNITIES FOR THE HOUSEHOLD GOODS TRANSPORTATION INDUSTRY. OBSERVERS OF THE INDUSTRY ARE WATCHING CLOSELY TO GAUGE THE RESPONSE OF THE MOVING COMPANIES TO THESE OPPORTUNITIES. ALTHOUGH IT IS REALLY TOO SOON AFTER IMPLEMENTATION OF THE HOUSEHOLD GOODS ACT TO DRAW ANY LASTING CONCLUSIONS, IT IS POSSIBLE TO MAKE SOME EARLY ASSESSMENTS. FOR EXAMPLE, ALTHOUGH ENTRY BARRIERS HAVE BEEN SUBSTANTIALLY EASED, WE HAVE NOT SEEN A GREAT INFLUX OF NEW CARRIERS - A RESULT WHICH WAS ENTIRELY PREDICTABLE. THE NATURE OF THE HOUSEHOLD GOODS TRANSPORTATION INDUSTRY, THE NEED FOR SPECIALIZED EQUIPMENT AND TRAINED LABOR, AND THE CAPITAL INVESTMENT REQUIRED TO BEGIN A NEW OPERATION - ALL THESE FACTORS COMBINE TO EFFECTIVELY MINIMIZE THE LIKELIHOOD THAT ANY MAJOR RESTRUCTURING OF THE INDUSTRY WILL TAKE PLACE IN THE FORSEEABLE FUTURE. AT THE PRESENT TIME, WE ARE ALSO WITNESSING WHAT APPEARS TO BE THE DEVELOPMENT OF A SIGNIFICANT TREND IN THE USE OF CONTRACTS BY HOUSEHOLD GOODS MOVING COMPANIES. AS A MARKETING TACTIC, THERE ARE SOME OBVIOUS ADVANTAGES TO CONTRACT CARRIAGE, PARTICULARLY INSOFAR AS PRICING STRATEGIES ARE CONCERNED. CONSEQUENTLY, IT SEEMS ALTOGETHER LIKELY THAT THE TREND TOWARD CONTRACTING WILL BECOME A PERMANENT PRACTICE. AND SPEAKING OF PRICING PRACTICES, ANOTHER OF THE INDUSTRY'S RESPONSES TO THE HOUSEHOLD GOODS ACT CAN BE SEEN IN THE VARIETY OF PRICE AND SERVICE OPTIONS WHICH HAVE BEEN INTRODUCED. DISCOUNTS ARE BEING OFFERED IN A NUMBER OF IMAGINATIVE WAYS. VOLUME DISCOUNTS ARE OBTAINABLE BASED ON THE NUMBER OF SHIPMENTS TRANSPORTED, THE AGGREGATE WEIGHT OF SHIPMENTS, AND THE CUMULATIVE CHARGES FOR SHIPMENTS. MORE THAN ONE DISCOUNT MAY APPLY TO THE SAME SHIPMENT. WE HAVE EVEN SEEN TARIFFS WHICH PROVIDE DISCOUNTS BASED ON THE AGE OF THE SHIPPER. COMBINING GUARANTEED SERVICE DATES, WITH AN AGREED UPON AMOUNT OF COMPENSATION TO THE SHIPPER IF THE DATES ARE NOT MET, IS ANOTHER SERVICE OPTION WHICH IS BEING USED WITH SOME FREQUENCY. WHILE A FEW WARNING SIGNALS HAVE BEEN SOUNDED BY SOME CONSUMERS ABOUT THE POSSIBLE USE OF THIS OPTION AS AN ATTEMPT TO EFFECTIVELY LIMIT A CARRIER'S LIABILITY, IN GENERAL, PROVIDING A SHIPPER WITH ASSURANCE OF MONETARY COMPENSATION FOR THE INCONVENIENCE AND EXPENSE OF DELAYS, SEEMS TO BE AN APPROPRIATE MARKETING TOOL. THERE ARE OTHER ASPECTS OF THE RAPID GROWTH OF PRICE/SERVICE OPTIONS WHICH DEFY THOUGHTFUL ANALYSIS AT THE MOMENT. FOR EXAMPLE, WE ARE CURRENTLY TAKING A "WAIT AND SEE" ATTITUDE TOWARD THE VARIOUS DISPUTE RESOLUTION PROGRAMS WHICH USE ARBITRATION TO SETTLE DIFFERENCES, AS WELL AS THE FULL-VALUE LIABILITY PROTECTION OPTIONS COMING INTO PROMINENCE. IT WILL TAKE THE |