provement, and we suggested that the establishment of a permanent planning function within the Commission which could plan for the future surface transportation needs of the nation could be of benefit in this, as well as other areas.

The Functions of the Interstate Commerce Commission

On October 8, 1974, the House of Representatives passed H. Res. 988, the "Committee Reform Amendments of 1974" which made procedural and administrative changes in the Rules of the House. Among those changes was the transfer of jurisdiction over the surface transportation industry, except railroads, from the Committee on Interstate and Foreign Commerce to the Committee on Public Works and Transportation. The Commission made its first appearance before the Committee on Public Works and Transportation on June 5, 1975, and briefed the Members on the scope of the Commission's jurisdiction over all segments of the surface transportation industry, except railroads. This includes motor carriers, domestic water carriers, freight forwarders, pipelines, and express companies. In addition the Commission presented the Committee with an economic profile of each segment of the surface transportation industry.

First, the Commission detailed the scope of its authority over motor carriers and distinguished regulated motor carriage from private and exempt operations. We summarized our procedures and activities in the three major areas of motor carrier regulation-entry control, rates, and securities, acquisitions, and related transactions. Also, the Commission explained the activities engaged in by "brokers" of transportation, and explained the bonding requirements imposed on them by the Com

mission.

With respect to express companies, the Commission explained that the Hepburn Act of 1906 declared them to be common carriers within the purview of part I of the Interstate Commerce Act. At the present time REA Express is the only company which falls into this category, and the Commission detailed that company's current operations and financial condition.

In summarizing its authority over water carriers, the Commission described the extent of its jurisdiction over water carrier movements from foreign countries. The exemption for transportation of bulk commodities was also explained.

After outlining its regulation of freight forwarders, the Commission turned to a discussion of its pipeline juisdiction. In 1906, the passage of the Hepburn Act provided for regulation by the ICC of all interstate

pipelines, other than those engaged in conveying water or gas. Our authority over these operations, however, is not as extensive as over other carrier modes and the Commission discussed the limitations on its authority over pipelines.

Pursuant to the Committee's request we explained the criteria we use in granting rail abandonments and the type of conditions that can be imposed when such authority is granted. We outlined the organization of the Commission and its staff and concluded by discussing some of the major problem areas facing the Commission and how we are dealing with them. These topics included energy consumption, rate bureaus, household goods carriers, "LASH" water carrier movements, and fuel costs.

The Railroad Accounting System, Rail Materials Availability,
and the "Transportation Statistics Act of 1975"

On June 11, 1975, the Commission appeared before the Subcommittee on Transportation and Commerce of the House Committee on Interstate and Foreign Commerce and testified on the railroad accounting system, rail materials availability, and H.R. 7509, the "Transportation Statistics Act of 1975." The Commission emphasized the need for developing accurate transportation costs, explained the railroad uniform system of accounts and summarized the Rail Form A procedures. We discussed the need for revisions in the accounting system and detailed the actions the Commission has taken in this area.

Then, the Commission outlined the availability of certain necessary rail materials, including rails, ties, and ballasts, and concluded that over the short-term period, sufficient materials and equipment are available to replace 4,800 miles of track annually.

Finally, the Commission analyzed H.R. 7509, the "Transportation Statistics Act of 1975," which would establish a National Center for Transportation Statistics within the office of the Secretary of Transportation for the purpose of collecting and disseminating statistics related to transportation in the United States and other Nations. While we supported the purpose of the bill, we felt that this purpose could most effectively be served by providing the regulatory agencies with the mandate and facilities for developing the data base which they need for their regulatory purposes. The Center, we said, could be given coordinating functions to avoid duplication in intermodal areas, a storage function which would provide for the public availability of data accumulated by the various regulatory agencies, and a gathering function in those areas not specifically falling within the purview of a regulatory agency.

No further action was taken on H. R. 7509 in the fiscal year.

ADMINISTRATION

Management

Management efforts during fiscal year 1975 were intensified to ensure that the Commission's resources were applied in the most effective and efficient manner to carry out assigned responsibilities. To a large extent, these efforts are centered around the Commission's program evaluation system which provides the means by which major program objectives are identified and defined. At the beginning of each fiscal year, major organizational units are given guidelines upon which to base the establishment of their program objectives. The performance of each major program area is monitored on a continual basis and, through a formal reporting system, quantitative program accomplishments are measured and evaluated in relation to the established objectives and past performance. The program evaluation system is designed to identify and enable the taking of corrective action in problem areas such as duplication of effort, poor productivity, inefficient operations, and backlogs.

Since its establishment in 1964, the program evaluation system has been continually refined and improved in order that the most meaningful and valid information might be developed upon which to base decisions concerning allocations and use of the Commission's resources. In furtherance of this goal, steps will be taken in fiscal 1976 to implement the Administration's new management concept-Management by Objectives (MBO). The essential ingredients of the Commission's proposed MBO rrogram will be the setting of objectives and priorities in terms of results to be accomplished within a given time frame; developing plans for accomplishment of results; allocating available resources in terms of established objectives; tracking and monitoring progress in achieving the objectives; evaluating results in terms of effectiveness (quality, efficiency and economy); and implementing and giving recognition to these improvements that have come about as a result of the establishment of objectives. Although the MBO Program is not yet operational, several of the Commission's Bureaus and Offices are currently utilizing its concepts in their planning processes.

Organizational Changes

Organizational changes introduced in the past year within the Commission included the establishment of the Special Projects Staff in the Bureau of Enforcement and, in the Bureau of Operations, the restructuring of field support positions to provide for ten or, ultimately, more Transportation Assistant positions, and the establishment of the Motor Carrier Program Branch and the Household Goods Carrier Branch. These changes will improve service to the public and emphasize the Commission's concern for consumer interests.

The Special Projects Staff was established to participate in Commission formal proceedings, conducted pursuant to the Administrative Procedure Act, to assure the development of an adequate record in significant proceedings. The scope of this intervention includes proper representation of the public interest, expeditious handling of the proceeding and, possibly, setting forth appropriate positions and recommendations for alternative courses of action as well as their probable consequences. Prior to the attachment of this staff to the Bureau of Enforcement on December 9, 1974, these functions were performed, through contractual provisions, outside of the Commission.

The position of Transportation Assistant was established formally in certain field offices in February 1975, in order to better respond to the public's need for service, particularly in the transportation of household goods. In field offices with the largest volume of work, Transportation Assistants provide needed support and assistance in functions, such as the handling of complaints and the processing of temporary authorities, emergency temporary authorities, and complex fitness reports. These positions have proved useful adjuncts to the field operation.

The Motor Carrier Program Branch and the Household Goods Carrier Branch were organized in the Bureau of Operations in September 1974. These Branches were instituted to promote public awareness of ICC regulations governing motor carrier operations and, through compliance surveys of carriers and technical support to field staff, promote responsible and responsive motor carrier service.

Employment

The employment ceiling of the Commission increased during fiscal year 1975, from 1,895 to 1,991 authorized personnel. In addition, the Rail Services Planning Office employed 58 employees for an overall Commission total of 2,049.

As a continuing part of our recruitment efforts, Office of Proceeding's attorneys accompanied Regional Managers to 54 law schools throughout

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the United States. In the several years that we have made this joint effort, experience has demonstrated not only a greater awareness among applicants of the Commission's work, but improved morale within the Office of Proceedings and less turnover among its attorneys.

Concentration was placed on the recruitment of recent college graduates for appointment as trainees in the Bureaus of Accounts, Operations and Traffic. The Bureaus, which, until recently appointed primarily experienced personnel from industry to technical positions, are benefiting from the generally high level of work produced by trainees.

Continuing emphasis is being placed on the recruitment of clerkstenographers, clerk-typists and other clerical support.

Commission Budget

Regular appropriations.-The President's regular budget for Fiscal Year 1976 included $49,970,000 and 2,182 positions for Commission operations.

On July 16, 1975, the President transmitted an amendment to the Commission's 1976 request providing for an increase of 15 positions and $500,000 for Salaries and Expenses and $21.6 million for Payments for Directed Rail Service.

On March 19, 1975, and June 12, 1975, the Commission appeared before the House Subcommittee on Transportation Appropriations and the Senate Subcommittee on Transportation Appropriations, respectively, with respect to its 1976 budget request. On July 10, 1975, the House passed H.R. 8365, which included 2,182 positions and $49,130,000 for the Commission. The reduction of $840,000 included $670,000 related to office space rental payments to the General Services Administration and $170,000 to allow staffing of new positions for 6 months instead of 9 months as requested. On July 25, 1975, the Senate passed its version of H.R. 8365, which provided for 2,182 positions and $49,630,000 for Salaries and Expenses and $20.0 million for Payments to Directed Rail Service. The difference between the two bills relates to the 1976 budget amendment which was transmitted after the House had acted. Enactment of the appropriation was expected in October.

Supplemental Appropriation.-Fiscal Year 1975-On March 3, and March 18, 1975, the Commission appeared before the House and Senate Subcommittee on Transportation Appropriations, respectively, to request a supplemental appropriation for Fiscal Year 1975. The supplemental budget request included $500,000 for additional funding of the Rail Services Planning Office. Public Law 94-32 was signed June 12, 1975, and the Commission received $500,000 for "Salaries and Expenses" and $1,300,000 to cover pay increase costs.