June 9, 1971 EXTENSIONS OF REMARKS 19061 EXTENSIONS OF REMARKS THE NATION'S FREIGHT CAR the years. But it has grown more severe in On Jan. 1, 1959, American railroads had SHORTAGE NEEDS LEGISLATION recent years. Not only does it affect our 674,792 such boxcars; by Jan. 1 this year, TO SOLVE CHRONIC PROBLEM Western grain farmers and lumber shippers, this total had dropped to 386,499. or these but it also affects the coal industry in the boxcars, the total of narrow-door boxcars East, the lumber industry, almost every in­ suitable for grain hauling had declined to dustry in every region in the country. 180,574 as of terminals-increased from 58,- HON. MARK 0. HATFIELD I think it is clear that the time is ripe for 383 on Jan. 1, 1959, to 125,867 on Jan. 1, OF OREGON legislative action. The freight car shortages 1970. However, these hopper cars are used are of major concern to many of the nation's for many purposes other than the transporta­ IN THE SENATE OF THE UNITED STATES shippers. Further, we must keep in mind the tion of grain and similarly-handled agricul­ Wednesday, June 9, 1971 weakened condition of the rail industry itself. tural products. They have by no means met A creative solution to the freight car short­ the current needs of the grain industry. Mr. HATFIELD. Mr. President, I need age wlll not only aid shippers, but it will In addition to the shortage of ordinary not repeat today what I have said be­ also help the beleaguered railroads. boxcars, there is also a critical shortage of fore in this Chamber about the effects This Subcommittee intends to conduct a mechanical refrigerated cars for the move­ on the commerce of this country caused thorough analysis of the problem and will ment of perishable agricultural products. by shortages in freight car supplies. attempt to develop a solution to it. We will While the boxcar shortage has grown in­ The recent rail strike--brief as it have two days of hearings, today and Friday creasingly acute since 1959, the population was-demonstrated in dramatic terms this week. I expect that we will have several of the United States has increased by more more days not yet scheduled before we are than 27 million persons. The need for ade­ the effect on many segments of our econ­ finished. The bills before us shoUld provide quate movement of the basic agricultural omy that a nationwide shutdown by our a good starting point for our work. We hope raw materials into the food production areas rail transportation has. I would note to improve upon them before we are finished of our Nation increases dally. that, when a shipper cannot get freight and we look forward to the comments of Complicating matters even more are two cars to ship his product to market, the our witnesses to help us in this regard. strictly agricultural problems. One is the effect is just the same as it is when there Today, I will not go into detail in support matter of greatly increased crop volumes is a rail strike: if it is fresh produce, of the various bills before our Subcommittee, which must be moved and the particularly he may lose his entire crop in both but as a member of this Special Subcommit­ sharp increase in fall-harvested crops. tee I do want to highlight the problem as Wheat production during the 1950-70 pe­ cases. it relates to my own State of Oregon where riod has expanded from around 1 billion I believe the Commerce Committee we ship twice as many goods out of the State bushels annually to about 1Y2 billion; corn will give careful examination to legisla­ as we import. production has grown from around 3.8 bil­ tion this session to help solve this chronic Oregon shippers need empty cars for our lion bushels to around 4.5 billion; grain problem. As a member of both the full goods to travel to markets in other states. sorghum from 555 million bushels to more committee and its Special Subcommittee Probably the best known of the areas where than 700 million; and soybean production on Freight Car Shortages, I will work the shortage plagues Oregon businesses are has nearly doubled-to the point where it for a solution. in the forest products area and in agricul­ now exceeds 1 billion bushels annually. Fur­ I chaired the first day of the recent ture. I could count off numerous occurrences thermore, the percentage of the corn and with friends of mine in the lumber industry grain sorghum crops move<l off the farm has subcommittee hearings, when we heard where box car shortages have hindered and increased substantially. from several fine witnesses. even crippled efforts to reach markets in Senator HATFIELD. From this testimony of I ask unanimous consent that my other states at cruciaJ. times. Secretary Hardin, statistics point out just opening statement at the hearing ap­ Throughout Oregon, our forest products how severe this problem is across the entire pear at this point in the RECORD. shippers-from the giant companies to the country. There being no objection, the state­ small independent operators-have lost In conclusion, I hope that this Committee ment was ordered to be printed in the profits, faced serious financial difficulties, and wlll approve legislation which wlll help solve REcORD, as follows: have laid off men, and thus increased unem­ the severe problems facing shippers in Ore­ ployment. These problems occurred because gon and other parts of the country as well. On Senator HATFIELD. The hearing will please no box cars were available when they were behalf of businessmen and consumers in Ore­ come to order. needed. One small mill in Western Oregon gon and throughout th~ country, I will urge Let the record show that Senator Magnu­ was forced to lay off 200 workers because no approval of legislation which will enable son the Chairman of the Commerce Com­ rail cars were avail01ble to transport the mill's meaningful steps to be taken to solve this mittee and a member of the Special Sub­ lumber production. transportation crisis. committee on Freight Car Shortage, has com­ As the eoonomy in the country improves, mitments on the Senate Floor this morning I anticipate increases in new home collSitruc­ and will try to join us if at all possible. I tion. The box car shortages CYf the past two do no think it is necessary to indicate his years will pale in comparison to what Ore­ keen interest because it has been amply gon lumber companies will face if more cars EMERGENCY EMPLOYMENT ACT demonstrated on many occasions concerning are not provided for our products. I also OF 1971 the subject on which we will be holding would presume that similar situations exist hearings this morning. in other Northwest States. I am pleased to welcome each and every I would also add that our State's agricul­ HON. LOUISE DAY HICKS one of you here this morning to the first ture industry has a vital interest in improv­ OF MASSACHUSETTS ing the freight car situation. The most day of the hearings before the Special Sub­ IN THE HOUSE OF REPRESENTATIVES committee on Freight Car Shortages on dramatic cases concern shipments of fruilt, freight car shortage problems and on four produce, and vegetables. The equation here Wednesday, June 9, 1971 relevant bills which have been introduced­ is simple: If there are no cars, everything is Senate Bill1415, introduced by Senator Pear­ lost when the crops spoil. Mrs. HICKS of Massachusetts. Mr. son, which would authorize the Department The effects on consumers oan be illustrated Speaker, in passmg the Emergency Em­ of Defense to purchase for its use not less most clearly in this context. When crops spoil ployment Act of 1971, this House took a than 10,000 general purpose freight cars; or are delayed, the supply cannot meet the bold step forward toward enacting leg­ Senate Bill1729, introduced by Senator Mag­ demand. The resullt is higher prices for the islation that has been clamoring for pas­ nuson with 33 co-sponsors, which would American consumer. sage for well over a year. We have create a public corporation to acquire gen­ Secretary of AgricUlture, Clifford Hardin, watched the unemployment rate steadily eral purpose cars and to foster improved testified last year on this problem CYf the utilization through modern computer sys­ freight car shortages as it affects agriculture. creep upward first to an unacceptable tems; Senate Bill 1730, introduced at the I would like to have the reoord show here the 4.7 percent in April of 1970, and now to request of the National Industrial Traffic selections from his testimony as indicated. an alarming 6.2 percent in May of this League, which would create a combination The answer to the problem is complex: It year. This rate is the highest in more public-private corporation to acquire gen­ involves money for equipment, changing rail­ than a decade, and I fear that we have eral purpose cars; and Senate Bill 1731, in­ car usage patterns, rising costs, and distribu­ not yet reached the apex. troduced at the request of the Association tion of available equipment into agricultural of American Railroads which would provide areas at times of peak harvest demand. The 244-to-142 vote last week that government insurance against default on The number of plain boxcars in use has swept this bill off the floor and into con­ railroad equipment loans. declined annually for the past 11 years or ference committee attested to the fact The freight car shortage problem is famil­ more.