Colonel JOHNSON. Yes, I actually did, and I have the letter here, and I would like to read it all into the record. When anybody tells me, with the reputation that these railroads have earned, to turn them over to three men, with all of the other railroad men there are in America, I say it is presumptuous.

Mr. CANNON. Without objection the letter will be included in the record.

Mr. CASE. Only if the letter from the Kansas City Board of Trade can be put in also.

Mr. CANNON. Yes, both of them.

(The matter referred to is as follows:)

THE BOARD OF TRADE OF KANSAS CITY, Mo.,

Hon. J. MONROE JOHNSON,

Kansas City, Mo., March 23, 1945.

Director, Office of Defense Transportation, Washington, D. C.

DEAR SIR: I am enclosing with this letter copies of a statement on behalf of representatives of the grain and milling trades in the Central West, a letter to Mr. John J. Pelley, president, Association of American Railroads, Washington, D. C., and to the members of the Interstate Commerce Commission, all relating to the severe shortage of boxcars for loading grain and grain products.

At the meeting referred to in the statement I was directed to communicate with you in protest against the methods of the railroads in dealing with this matter. It appears to us that the eastern lines are pursuing a course for which there is no justification in that they are retaining western lines' boxcars on their lines and applying them to eastern loading, whereas there should be a prompt adjustment of the existing dislocation by increased substantial deliveries of boxcars to western lines. It also appears that the western lines, when they get these cars, are not properly distributing them, in that no fair proportion is being assigned to the loading of grain and grain products.

We do not expect the Association of American Railroads to correct this condition. Our information is that that organization is dominated by the eastern trunk lines, and it is hardly to be expected that it will take any drastic action in this matter. Unless the Office of Defense Transportation acts or the Interstate Commerce Commission takes the matter up, it is difficult to see any relief in sight. On behalf of the parties signing the statement I respectfully urge you to take hold of this matter vigorously to see if something cannot be worked out.

Yours very truly,

E. R. JESSEN, President. OFFICE OF DEFENSE TRANSPORTATION, Washington, D. C., April 2, 1945.

The BOARD OF TRADE OF KANSAS CITY,

Kansas City, Mo.

(Attention Mr. E. R. Jessen, president)

GENTLEMEN: Some days ago I received a copy of a very surprising letter that you addressed to the Internstate Commerce Commission. That letter has now had a reply from Commissioner Miller, Chairman of Division 3. I think it necessary for me to make some comments which I now do.

It is not unusual for some group interested in a certain commodity to insist on its relief in utter disregard to the transportation of others, including the military. Yours, however, has been the most outstanding instance I have yet experienced. It's a little discouraging that a group of men such as you,without any general knowledge of the transportation difficulties, would attempt a solution by allocating to yourselves a profitable and easy transportation road which would, if followed, paralyze the whole transportation situation and have an immediate effect on the war effort and would result in ultimate disadvantage to yourselves. It would seem to me that American transportation, in view of the record it has established in this World War, with 600,000 fewer freight cars and other serious deficiencies as compared to the First World War, deserves more confidence than you exhibit.

A miracle of transportation unprecedented has been performed by the transportation men of the United States and their customers, the Association of Ameri can Railroads, the American Short Line Railroad Association, the motor industry, the Interstate Commerce Commission, and the Office of Defense Transportation working together as a unit. They certainly would be presumed to have more talent in transportation than the Board of Trade of Kansas City, even if not

established by the record. It would seem to me that you would appreciate that you are presumptuous to make such recommendations. I consider you so.

I do not ask whether you know that there is a war on, but I do ask whether you realize that there are two wars now as compared to one heretofore, either of which would challenge the ingenuity and genius of the transportation people of America. In addition, there are the rescued peoples all over the earth, hungry and cold and pleading for relief. That transportation alone is challenging.

The exports of America in 1914 were 465,238 cars, or 33.2 percent more than in 1943 and, due to the outbreak in the full tide of the Pacific war, exports of course have been at a greater rate of increase in the latter part of 1914 than in the early part, and they now are at an unbelievably greater rate.

This has been maintained in spite of the fact that the principal gateways of the United States experienced a convulsion of nature in snow and blizzards for months unprecedented in the meteorological history of the Nation. (You might recollect your Kansas City flood situation in 1903, which was pigmy by comparison, both in extent and in effect on the Nation.) Transportation had no supports or reserves with which to contend with such an upheaval, but, even so, it has flattened out the break-through. The entire recovery, however, because of delay of the program will take more than a year. I want to remind you that during the period those gateways were paralyzed by weather, except for a few embargoes, the shipping public, including you, shipped into that area without regard and wondered why they didn't get their cars back.

During that time and for some time thereafter there was a tremendous overownership of cars in the East and, in addition, an unusual number of Canadian cars and, of course, an under-ownership of cars in the West. However, at the same time there was a far more critical car shortage in the East than in the West. This was due entirely to manpower shortage, and transportation was then confronted by another draft of its labor which has since been averted.

We found ourselves at that time facing, and to some extent we still face, the fact that we have boats with grain in storage on the Great Lakes that must be unloaded else they will be late (navigation is now open and they are late) for the transportation of grain, ore, and coal on the Great Lakes.

With elevators in the West filled with wet corn now damaging, with the gigantic burden of moving grain to the rescued countries, and with a back-10g of wheat to be moved to make room for the new crop, which promises to be another billion bushels, the grain movement is a problem within itself.

Even with all that, more was shipped to our armed forces than ever before. We are moving more grain today than we were a year ago, as is shown by the enclosed report of the Interstate Commerce Commission. The last report on grain carloadings, herewith enclosed, shows loadings above 1943 or 1944. At the rate of present loadings we will have moved by the last week of June at least 48,000 carloads more than in the same period last year.

Of course, if we had more boxcars and more employees and more locomotives, we would be loading and handling more. We are faced now with the biggest boxcar shortage in many, many years. A chart is enclosed showing the comparative shortage now and formerly.

The carloadings today are almost, if not quite, on a parity with full fail loading. And yet you complain.

Of course, when we were faced with these problems, our first effort after the military (please never forget that) was to unload boats to avoid delay of vessels on the Lakes, next to save as much of the wet corn as possible, and then, so far as grain is concerned, to move the back-log of wheat. We are loading at present a greater proportion of corn as compared to wheat than ever before, and that is as it should be.

You should always remember, when you are prone to criticize, that in World War I we had about 1,900,000 railroad employees and that now we have only 1,410,000, of which 300,000 (including 115,000 women) are recruits to replace that number of men drafted to the military. We have 22,500 fewer locomotives, 600,000 fewer freight cars, and 17,600 fewer passenger cars, and yet we are transporting over twice as many passenger miles, nearly twice as many revenue tonmiles as in the First World War, and one and one-half times as many revenue ton-miles as in 1941. I enclose tabulation for your perusal.

I also enclose tabulation showing that we have attempted to get for the railroads 186,000 more freight cars, 2,000 more locomotives, 2,600 more passenger cars, and 762,000 more tons of rail than we have received. I do not here attempt to give you the details of how many busses, trucks, and cars we have tried to get without success.

Remember, too, that in the First World War the average haul was about 250 miles, and now it is about 500 miles, and will grow tremendously greater as our emphasis is transferred from the Atlantic to the Pacific.

The outlook for the next 15 months is most alarming. You will probably store more grain in the producing areas this year than ever before. I am informed that the Department of Agriculture is making provisions and arrangements therefor. There will be throughout our commercial activities difficulties in transportation. We hope that such difficulties may be averted for the military.

Immediately on receipt of this letter from the Board of Trade of Kansas City, the Office of Defense Transportation and the Interstate Commerce Commission called in the Association of American Railroads to discuss the various statements made in your letter and your recommendations. The Association of American Railroads was asked to write up the conclusions there reached, using reports and data of the Interstate Commerce Commission and the Association of American Railroads. That was done, has been verified, and the statement is herewith enclosed. It would seem your letter needs no further comment, except your proposal "that immediate consideration be given to the appointment by you (me) of a committee of railway operating officials not to exceed three in number to be advantageously located within the eastern congested area, whose responsibility would be to work with the railways in an effort to break up the seriously congested situation * * * and that such committee be given absolute authority to support its judgment in whatever way may be necessary to obtain the result so badly needed." I presume that this was copied by you from a recommendation made to me by the Office of Defense Transportation-Interstate Commerce Commission Grain and Grain Products Transportation Conservation Committee in Chicago during the congestion which was almost as absurd then during the congestion as it is now after the congestion. Did you ever pause to think that I have at my command the talent and experience of every railroad man in the United States and that they were all giving their expert advice, work, and collaboration to the breaking up of the congestion, together with many hundreds of soldiers and thousands of cilivians? It was successfully done, and much earlier than anybody, including the Grain Committee and, I presume, you, would have thought possible, with the result that empty cars moving west at the rate of only 604 on March 1 reached 1,039 by the 8th, and nearly 1,500 by the 13th. On the 16th empty boxcars moved west at the rate of 1,654. During the first 29 days of March, there moved to the West 33,546 empty boxcars, an average of 1,157 cars per day, much of this movement during the congestion, and many other thousands of loaded cars that were made empty in the West. Chart is herewith enclosed. I hope sincerely that you will study the enclosures in order that you may grasp the full meaning and import of each.

I have found the Board of Trade of Kansas City helpful in the past, although last year, on your insistence, my agents were persuaded to allow congestion to develop in Kansas City which had to be straightened out ruthlessly. The transportation problems in front of us will require hearty, cordial cooperation and that each of us lose sight of our own selfish interests for the common good. There is no other way to solve this transportation problem. That method in the past has made the accomplishments of transportation possible, and I place those accomplishments not second to those of the Army or the Navy. I sincerely hope that you are in a position in the difficulties ahead to render that customary hearty support and cooperation.

Very cordially yours,

J. M. JOHNSON, Director.

(Enclosures. Distribution to all parties known to be interested.)
THE BOARD OF TRADE OF KANSAS CITY, Mo.,

DEAR SIRS: I am enclosing with this letter copy of a statement agreed to by representatives of the grain and flour milling trades of the Central West at a meeting held in Kansas City on March 22, together with copies of letters to Mr. J. J. Pelley, president of the Association of American Railroads, and to Col. J. Monroe Johnson, Director, Office of Defense Transportation, all of which relate to the current shortage of box cars for loading grain and grain products and are self explanatory.

I was directed by those present at the meeting to bring this matter to the attention of the members of the Interstate Commerce Commission with the request that the Commission take some action in the matter to inquire into the circumstances and determine if some remedial action should not be taken. Please regard this letter, therefore, as a formal request to that effect.

So far as we are aware the Interstate Commerce Commission has, up to this time, taken no action of any kind to improve the conditions which result in the abnormal dislocation of boxcars, the immediate cause of the severe car shortage in the West. It may be that the Commission has established a policy to obtain during the period of the war to defer to the Office of Defense Transportation in such matters as underlie the car shortage. If this is so, we should look to the Office of Defense Transportation, but that agency has apparently not taken such action as would bring the necessary relief. It was the firm conviction of those attending the meeting that the Interstate Commerce Commission should exercise its powers under the Act in the circumstances here presented.

You are requested to advise me the attitude of the Commission in this matter We have a bad situation, steadily growing worse, and the proper authorities should, in our opinion, do something about it.

Respectfully,

E. R. JESSEN, President.

INTERSTATE COMMERCE COMMISSION,
Washington, March 31, 1945.

Mr. E. R. JESSEN,

President, The Board of Trade of Kansas City, Kansas City, Mo. DEAR MR. JESSEN: Your letter of March 23, addressed to Chairman Rogers requesting that the Commission inquire into the circumstances surrounding the present shortage of boxcars for loading grain and grain products and determine if some immediate action should be taken to improve the car supply for those commodities, has been referred to me, as Chairman of Division 3, for reply. Division 3 has charge of car-service matters, as definied in the Interstate Commerce Act. Commissioner Johnson is a member of this division, as well as

Director of the Office of Defense Transportation. All the statutory powers of the Commission with respect to car service, including the issuance of service orders, are exercised by the Commission, through Division 3, which has been currently informed of the shortage of cars of which you complain and of the action taken to minimize the effect.

The Commission has not relinquished any of its powers with respect to car service to the Office of Defense Transportation and could not do so under the statute. The policy of the two organizations has been to work closely together, each having the benefit of the experienced personnel of both organizations.

Since the receipt of your letter the situation has been reviewed again by Division 3 and the Office of Defense Transportation.

I am enclosing herewith a mimeographed statement entitled "Situation with Respect to the Current Shortage of Cars for Grain and Grain Products Loading.' This statement, which was prepared after conference between representatives of the Commission, the Office of Defense Transportation and the car-service division of the Association of American Railroads, sets forth, item by item, the allegations contained in your Statement of Grain and Flour Milling Interests Regarding the Shortage of Boxcars, which accompanied your letter, and replies thereto.

I am also enclosing the statement of our Bureau of Transport Economics and Statistics, dated March 29, 1945, showing the weekly revenue freight loadings. It will be seen that for the week ending March 24, 1945, 45,822 cars were loaded, as compared with 44,067 for the previous week, and 43,261 for the week ending March 25, 1944. Assuming that cars can be supplied to continue the present volume until the last week in June 1945, the railroads will at that time have moved 48,000 more carloads of grain and grain products than were moved during the same period a year ago.

I attach also a chart showing the boxcar surpluses and shortages for 1944 and 1945. The boxcar shortage is greater now than at any time during many years. There is furnished also a three-page statement from the Export-Import Section

The outlook for the next 15 months is most alarming. You will probably store more grain in the producing areas this year than ever before. I am informed that the Department of Agriculture is making provisions and arrangements therefor. There will be throughout our commercial activities difficulties in transportation. We hope that such difficulties may be averted for the military.

Immediately on receipt of this letter from the Board of Trade of Kansas City, the Office of Defense Transportation and the Interstate Commerce Commissioni called in the Association of American Railroads to discuss the various statement made in your letter and your recommendations. The Association of America: Railroads was asked to write up the conclusions there reached, using reports and data of the Interstate Commerce Commission and the Association of America: Railroads. That was done, has been verified, and the statement is herewi enclosed. It would seem your letter needs no further comment, except your proposal "that immediate consideration be given to the appointment by you (me of a committee of railway operating officials not to exceed three in number to be advantageously located within the eastern congested area, whose responsibilit would be to work with the railways in an effort to break up the seriously congested situation * ** and that such committee be given absolute authority to support its judgment in whatever way may be necessary to obtain the result so badly needed." I presume that this was copied by you from a recommendation made to me by the Office of Defense Transportation-Interstate Commerce Commission Grain and Grain Products Transportation Conservation Committer in Chicago during the congestion which was almost as absurd then during the congestion as it is now after the congestion. Did you ever pause to think that I have at my command the talent and experience of every railroad man in the United States and that they were all giving their expert advice, work, and collatoration to the breaking up of the congestion, together with many hundreds of soldiers and thousands of cilivians? It was successfully done, and much earlier than anybody, including the Grain Committee and, I presume, you, would have thought possible, with the result that empty cars moving west at the rate of oniy 604 on March 1 reached 1,039 by the 8th, and nearly 1,500 by the 13th. On the 16th empty boxcars moved west at the rate of 1,654. During the first 29 days of March, there moved to the West 33,546 empty boxcars, an average of 1,157 car per day, much of this movement during the congestion, and many other thousands of loaded cars that were made empty in the West. Chart is herewith enclosed I hope sincerely that you will study the enclosures in order that you may grasp the full meaning and import of each.

I have found the Board of Trade of Kansas City helpful in the past, although las* year, on your insistence, my agents were persuaded to allow congestion to develop in Kansas City which had to be straightened out ruthlessly. The transportation problems in front of us will require hearty, cordial cooperation and that each of us lose sight of our own selfish interests for the common good. There is no other way to solve this transportation problem. That method in the past has made t. accomplishments of transportation possible, and I place those accomplishmet.'not second to those of the Army or the Navy. I sincerely hope that you are it a position in the difficulties ahead to render that customary hearty support a cooperation.

Very cordially yours,

(Enclosures.

J. M. JOHNSON, Director.

Distribution to all parties known to be interested.)
THE BOARD OF TRADE OF KANSAS CITY, MO,
March 23, 1945