9. Office supplies and transportation of things----

For office supplies for additional employees and to bring stock to normal level.

Due to providing field employees with GSA rental vehicles in lieu of reimbursement for use of privately owned automobiles on official business.

Total decrease__.

Net increase___.

$31,000

1, 285, 353

73, 633

31, 720

105, 353

1, 180, 000

During the past year the Commission continued to take significant steps for the improvement of its organization, operation, and procedures. The Commission completed a thorough study in depth of the whole fabric of its field organization, with the objective of eliminating for the future any shortcomings of the present organizational structure. An extensive realinement of its field establishment was put into effect on January 1, 1964. Seven regions have been established, in lieu of the 13 formerly in effect, to serve a basic geographical pattern for all ICC field activities. All field forces will be organized into a single staff and the field establishment will be one major organizational component for management purposes, including budget development and administration, personnel administration, program evaluation, manpower utilization, management improvement, and administrative supervision and support. This extensive field reorganization is the result of the Commission's constant review and evaluation of its operations and procedures and its internal organization, to assure that its workload is handled as effectively, efficiently, expeditiously, and economically as possible. While it is not possible, at this time, to evaluate manpower productivity.

The Bureau of Rates and Practices was reorganized into four organizational sections instead of the former six sections. The purpose of the reorganizathe effectiveness of this field reorganization, it is expected to produce increased tion was to provide improved supervision and closer control over the increasing number of complex rate cases being presented to the Commission for resolution. On October 31, 1963, a plan for reorganization of the Bureau of Accounts was approved. The purpose of the reorganization was to obtain more effective utilization of the manpower resources available. Savings resulting from the reorganization are estimated at $28,000 on an annual basis.

In recognition of the Commission's responsibility to fully utilize the rapidly developing advantages of data processing and related management sciences in carrying out its regular responsibilities to the public, a new organizational unitthe Section of Systems Development-was created in the Office of the Managing Director in April 1963, in order to place increased emphasis on these functions. The Section was established within the existing personnel ceiling by combining the staff of the automatic data processing study team with the staff of the Systems and Methods Branch. A major advantage expected to accrue from this merger is a closer coordination between development and improvement of management control systems and their practical application and operation.

The Commission's overall analysis of its data collection activities is continuing. Our Staff Committee on Reduction of Paperwork Burden, which was created in 1959, has reviewed 98 reports. As a result, 20 reports were discontinued or consolidated with others; reporting incidence of 7 reports was changed from monthly to quarterly; and data content of 11 reports was reduced. The cumulative efforts of the foregoing has resulted in carrier respondents being relieved from filing some 453.000 reports annually including elimination of more than 33.8 million reportable items. Examination of our annual reporting requirements has thus far resulted in a reduction approximating 22,800 pages of these reports. To put more emphasis on this area of our data collection activities, the Commission obtained the services of the former Director of the Bureau of Accounts. who was, until his retirement at the end of 1962, an original member of the staff committee. Manpower savings, resulting from decreases in workload incident to examining and processing carrier reports, have been

used for other critical program areas of the Commission. Two major changes to the Uniform System of Accounts were also published during the year. Although designed primarily to reduce the reporting burden of regulated carriers, these changes have permitted faster processing of carrier reports by the Commission and will permit diversion of manpower to programs previously deferred. Improved procedures for handling motor carrier operating authority applications became effective January 1, 1964. These procedures, which were developed in response to recommendations of the Administrative Conference of the United States, provide for early identification of those cases which must be orally heard and those which are suitable for disposition on the basis of written statements and affidavits only. Speedier handling of both types of cases will result from earlier determination of the appropriate methods of processing. Significant improvement in manpower utilization should also result from limiting the number of cases assigned for oral hearings to those which cannot be handled otherwise. Development of data processing techniques capable of producing carrier cost studies formerly performed manually have brought about substantial reductions in the amount of time devoted to each of these studies. During the past fiscal year, more than 11,000 man-hours were saved by utilizing these data processing programs. These savings have been applied toward increased activity in the cost finding area as carrier cost data are growing in importance as the basis for rate justifications.

A survey of the Commission's mail and messenger service and its subsequent reorganization has resulted thus far in elimination of six messenger positions and three clerical positions. Savings realized from elimination of these positions were applied to the cost of assigning additional stenographic assistance to hearing examiners.

A thorough analysis of the Commission's reproduction facilities has resulted in procurement of several new pieces of automated equipment and improvement of methods and procedures. These steps have brought about substantial savings in the cost of preparing Commission reports, orders, notices, and other necessary printed materials. As a result of improved work habits and modern equipment, the Commission's printing costs have been reduced substantially through curtailment of work performed outside the Commission and overtime work performed by Commission employees. The savings have been applied toward the purchase price of the new equipment.

A comprehensive study of the Commission's use of space in the ICC Building was conducted with the view of achieving better utilization and to alleviate the acute space assignment problem. Uniform standards for space allocation were adopted and, as a means of releasing storage space for conversion to offices, an intensive program of records disposition was commenced. More than 12,500 cubic feet of records were transferred to Federal record centers and an additional 8,000 cubic feet of records destroyed. These actions resulted in releasing for reuse storage equipment valued in excess of $60,000. A further reduction of approximately 10,500 cubic feet of records housed in Federal records centers resulted from the enactment of records disposal schedules. During the year more than 11,400 square feet of storage area in the building was remodeled into office and general purpose space by the General Services Administration. That agency expects to complete the remainder of this project during the current year. Space has been reallotted in accordance with occupancy standards and by the end of the year six of the bureaus and parts of others had been relocated in permanent quarters.

During fiscal year 1963, the Commission undertook a study to determine the feasibility of providing GSA rental vehicles to field employees rather than authorizing them to utilize, on a reimbursable basis, their privately owned automobiles. Results of the study indicated that substantial savings in the cost of automobile travel could be achieved through use of GSA rental vehicles and such vehicles are now being provided to elements of our field staff.

In an effort to coordinate regulatory policies affecting air, maritime, and surface transportation, we entered into an agreement with the Federal Maritime Commission and the Civil Aeronautics Board which provides for the fullest possible exchange of audit information and a coordinated approach to the problems of through routes and joint rate legislation. In the area of better manpower utilization the agreement establishes a policy to preclude duplication of audits of carriers subject to the jurisdiction of two or more agencies, to minimize testing and substantiation procedures to the extent consistent with professional audit standards, and to emphasize the need for standardization of general audit procedures. The Chairmen of these three agencies continue to meet regularly and staff committees have been organized to consider other common responsibilities and problems.

During the past year several steps have been taken to improve manpower control and assure the most effective utilization of the limited personnel resources available to the Commission in carrying out its regulatory responsibilities. Because formal proceedings work comprises the most important area of the Commission's workload in terms of personnel expenditures, and public impact, maximum emphasis was placed on improved workflow and productivity in this area during the year. The Central Status System, which is a basic component of the Commission management information system for controlling disposition of proceedings cases, was strengthened and expanded. Target dates for the completion of each major processing step of each major category of cases were incorporated into the system. The target dates are based on estimates of the amount of time a case of average complexity should remain in each processing step. Each month the director of each proceedings bureau and members of the Commissioners' personal staff are provided with listings of all cases which have failed to meet target dates prescribed for completion of selected processing steps. The listings identify each lagging case by docket prefix, docket number, and date of filing. The current status of each case and the name of the examiner, if any, who is handling the case is also provided. At this early stage of implementation, no statistics, such as the number of cases which have been expedited or the amount of time which has been saved as a result of this system, have been developed. Since many of the lagging cases identified were in early stages of processing, the full impact of the system on the overall time to process cases to decision will not be apparent for some time. In other cases the advantage of early identification of excessive delay was not fully realized because personnel limitations precluded immediate corrective action. Even without statistics, however, it is clear that the target date system has been a valuable addition to the Commission's continuing effort to maintain effective control over its steadily increasing regulatory workload.

In addition to efforts aimed at eliminating lost time between processing steps, actions have been taken to reduce the time required to perform necessary functions. During the past calendar year 671 cases, or 48.1 percent of all cases personally considered by Commissioners, were disposed of by means of the decision and order procedure. Under this procedure examiner reports are summarily affirmed by the Commission by means of a short standard form which adopts the recommended report of the examiner as the report of the Commission and in simple fashion disposes of the contentions of the protesting party found to be without merit. This form is used in place of a completely new final report thus reducing considerably the amount of professional staff time required to dispose of each case, not to mention a significant reduction in the typing and reproduction workload. The format of recommended and final reports has been shortened and simplified in order to reduce the time required for preparation and reproduction when such reports are used.

Travel performed in connection with hearing itineraries was also carefully analyzed during the year. Several recommendations concerning procedures for establishing hearing itineraries have been adopted which contributed to an increase of 11.7 percent in the number of hearings conducted during the past year without a corresponding increase in personnel or travel expenditures. Wherever background and experience have permitted, hearing examiners of one bureau are being assigned cases from other bureaus as part of their itinerary in order to avoid the need of sending another examiner to the field and also to provide a ready tool to correct a temporary imbalance of workload between the bureaus.

Several steps have also been taken to enable hearing examiners to devote a higher percentage of their time to their primary duties of conducting hearings and preparing recommended decisions. One of the steps has been the establishment of a case digesting system to provide a timely and required supplement to the Commission's already extensive reference facilities. Under this program, brief synopses of cases of more than usual significance or novel import are circulated to each examiner each month for inclusion in his reference files. This system provides examiners with a current summary of recent decisions in digested form thus relieving them of the need to pour over thousands of pages of reports each month in order to determine the significance of each decision. Stenographic assistance to hearing examiners has also been increased insofar as budgetary limitations have permitted.

The savings in manpower resources which have resulted from the foregoing actions have been applied to the Commission's rapidly growing regulatory workload. This additional manpower has enabled the Commission to effect the increase in hearings mentioned previously as well as an increase in the number of recommended reports written. This increase in work has been accomplished in spite of the fact that the average time required per case for conducting and preparing initial or final reports, due primarily to increasing complexity of cases, increased significantly during the past year. In addition, many of the Commission's most experienced staff members have been occupied solely with the unprecedented number of rail merger proposals presented to the Commission for approval. The thousands of hours required to hear testimony and prepare recommended reports in these cases has seriously diminished the amount of effort the Commission has been able to bring to bear on its normal workload. In addition to the proceedings bureaus, which already have an extensive examiner work reporting system, other major bureaus initiated new employee work reports to provide a meaningful record for work measurement, supervisory and other administrative purposes.

In an effort to conserve on equipment renewal, more than 300 items of used office furniture and equipment with a total acquisition value in excess of $24,000 were acquired at no cost to the Commission through General Services Administration's excess property utilization program.

As an essential part of the Commission's continuing property management program, items of office furniture and equipment not required for use in connection with present and planned operating programs are declared to the General Services Administration and made available for transfer to other agencies. During fiscal year 1963, 2,880 cases were received as second proviso filings under Public Law 87-805. Processing of these cases will require a substantial amount of time and in order to dispose of these cases in fiscal year 1964 with the present staff the backlog of other cases will increase materially. Also, during the past fiscal year receipts of motor carrier applications, other than the socalled second proviso filings, increased by more than 4 percent. For the first 6 months of fiscal year 1964, receipts of regular motor carrier applications have increased by 20.2 percent over a like period of a year ago. Accordingly, based on the anticipated rate of receipts and the large number of cases of major transportation importance, our ability to continue to keep the backlog from growing and improve our docket is seriously challenged. The 1965 budget provides funds to increase our staff of hearing examiners and attorney-advisers to assist in handling the increased workload.

The Commission's enforcement program requires immediate bolstering. During the past 7 years the number of court cases has increased by more than 100 percent without a commensurate increase in personnel. The number of administrative cases involving rate matters, rulemaking, and carrier fitness qualifications continue to increase; also, there is increasing emphasis on cases falling within the so-called gray area, such as unlawful leasing, so-called buy-and-sell schemes, fictitious shipper associations, etc. Most of these proceedings require a substantial amount of the time of our attorneys because of the mounting complexity of the issues involved. The 1965 budget provides funds for increasing our staff of attorneys to handle the additional workload anticipated and to reduce backlogs to a reasonably current level.

During the past fiscal year the Office of the General Counsel has experienced an increase in litigation involving Commission orders. There were 244 cases in process during fiscal year 1963 as compared with 232 cases in process during fiscal year 1962, an increase of 5 percent. A further upsurge in court cases is anticipated as a result of intense intermodal and intramodal rate competition and rail unifications. The 1965 budget provides funds for increasing our staff of attorneys to handle the increased workload.

In past budget requests we have expressed the need for increased appropriations to augment our staff engaged in cost finding activities. During the past year the need for increased activity became more pronounced. The continued effort of carriers to seek changes in rates and the installation of new and novel service features have increased the demand for more current and additional detailed cost data. To the extent analyses of cost evidence are not prepared promptly, it results in delay in the disposition of cases under consideration. The 1965 budget provides additional funds to make these improvements and to provide for the development of current transportation cost data for use in Commission proceedings.

It is apparent that unless we extend our field examination of carrier accounts to include a substantially larger number of carriers, the quality of carrier accounting and reporting will deteriorate. The 1965 budget includes additional auditor positions to increase the frequency of accounting examinations of carrier records and practices which are performed at the source.

Intensive studies of the Commission's practices, procedures, and organization were conducted by the Commission's Special Advisory Committee on Practices and Procedures, and by the management firm of Booz, Allen & Hamilton, engaged by the Bureau of the Budget. These studies recommended a strengthening of our functions with respect to transport policy, analysis, and research activities. In conjunction with this purpose, the Commission has given added emphasis and active attention to matters falling generally within the scope of transportation policy, analysis, and research activities. There is an urgent need for immediate and substantial enlargement of our activities in the field of transportation research into basic problems and developments as they relate to the responsibilities of the Commission. The 1965 budget includes funds to augment our research staff.

Increases in other items of expenditures are proportionate to the increased workload.

The funds requested in the budget estimate for 1965 must be made available to the Commission if it is to promote safe, adequate, economical, and efficient service and foster sound economic conditions in transportation and among the several types of carriers; and to encourage the establishment and maintenance of reasonable changes for transportation services, without unjust discrimination, undue preference or advantages, or unfair destructive practices, all of which are important factors in the national transportation policy and are duties and responsibilities of the Commission.