Consolidated income account, fiscal year June 30, 1947 and 1948

See footnotes at end of table, p. 230.

Consolidated income account, fiscal year June 30, 1947 and 1948—Continued

Mississippi system

OTHER INCOME

1947

3 Includes a credit of $24,520.46; adjustment of excess insurance reserve created by charging operating expenses on the Warrior system.

• Denotes loss.

Senator MYERS. Mr. Partridge.

STATEMENT OF F. L. PARTRIDGE, REPRESENTING UPPER MISSISSIPPI RIVER GRAIN SHIPPERS' ASSOCIATION AND BURLINGTON SHIPPERS' ASSOCIATION

Mr. PARTRIDGE. Mr. Chairman and members of the committee; I first want to extend my appreciation for having an opportunity to appear before you. In the interest of conserving time, if the Chair would permit, I would like to file this statement or testimony and make certain observations.

Senator MYERS. The statement in its entirety will be printed in the record at this point.

(The prepared statement of Mr. Partridge follows:)

STATEMENT OF F. L. PARTRIDGE, SECRETARY UPPER MISSISSIPPI RIVER GRAIN SHIPPERS' ASSOCATION

Mr. Chairman and members of the committee, my name is F. L. Partridge, secretary-treasurer of the Upper Mississippi River Grain Shippers' Association, with offices located at 2141⁄2 North Fourth Street, Burlington, Iowa.

The association was organized at a meeting of shippers held in the Hotel Burlington, Burlington, Iowa, May 6, 1949; its president is L. R. McKee, McKee Feed & Grain Co., Muscatine, Iowa. The shippers have a vital interest in the Federal Barge Lines, and inland waterway transportation and the public. Member shippers are from the States of Illinois, Iowa, and Missouri, who have large investments in elevators and other holdings located on or adjacent to the Mississippi River in those States.

Also, I am executive secretary-director of traffic, of the Burlington Shippers' Association, Inc., with offices located at 2141⁄2 North Fourth Street, Burlington, Iowa. This association was organized as a nonprofit organization, existing and operating by virtue under the laws of the State of Iowa for the past 31 years. Its membership is made up of shippers, and receivers of freight and others interested in sound, efficient, economical transportation, and the growth of their respective communities.

First, in passing, I direct this committee's attention to the testimony or statement of one A. D. Strong, secretary, Upper Mississippi River Association, Minneapolis, Minn., on or about May 16, 1949. In that perhaps some of his remarks are, or could be, misleading, not intentionally, if you please, it is the wish of my people and myself to inform this committee, that any remark made by him, insofar as it is to be applied to the interests represented by myself is wholly without authority, as he had no authority to speak for or represent our interests. Mr. Strong's presentation was in support of amended bill S. 211, whereas ours shall be in opposition thereto.

Obviously Mr. Strong on page 1 of his mimeograph statement would restrict the operations of the Federal Barge Lines, and on page 3, paragraph 6, he would have the corporation continued, which continuation can only come from an appropriation in sufficient amount to rehabilitate the corporation.

I think it wise and appropriate to refer your committee, Mr. Chairman, to the Inland Waterways Corporation Act, approved June 3, 1924, the last amendment being August 29, 1935. This act, as we all know, went to and did create the Inland Waterways Corporation in the public interest, and for the purpose of carrying out the mandate of Congress and the people.

Section 3 (c) is the principal issue, which involves the amended bill S. 211, and this portion of the act is in jeopardy, should Congress approve amended bill S. 211.

Section 3 (c) reads:

"It is hereby declared to be the policy of Congress to continue the transportation service of the Corporation until (1) there shall have been completed in the rivers where the Corporation operates, navigable channels, as authorized by Congress, adequate for reasonably dependable, and regular transportation services thereon; (2) terminal facilities shall have been provided on such rivers

reasonably adequate for joint rail and water service; (3) there shall have been published and filed under the provisions of the Interstate Commerce Act, as amended, such joint tariffs with rail carriers as shall make generally available the privileges of joint rail and water transportation upon terms reasonably fair to both rail and water carriers; and (4) private persons, companies, or corporations engaged, or are ready and willing to engage, in common-carrier service on such rivers."

66* * * 66* * *

continue the transare ready and willing

I emphasize that portion of the act which reads portation"; also, that portion with respect to to engage in common-carrier service on the rivers." To pass the original bill S. 211 submitted January 5, 1949, will permit the Corporation to fulfill the mandates of Congress, to continue the common-carrier transportation service.

However, to approve amended bill S. 211, submitted March 18, 1949, will so restrict the Corporation's operations, that those mandates of Congress cannot and will not be carried out.

Also, Congress must appropriate sufficient amount of money to rehabilitate the Corporation now. and unless such appropriations are made now, the Corporation will liquidate itself, destroying a massive rate structure and benefits for shippers.

In 1926 the city of Burlington, Iowa, floated a bond issue for the purpose of constructing a water-rail terminal, and a water-rail terminal was constructed at a cost of approximately $400,000, these facilities were made available to the rail lines. These bonds have now been retired.

The facilities were constructed after, and only after, serious consideration and deliberation, the feeling being that there was a need for facilities to encourage water transportation, assist in carrying out the mandate of Congress under the Inland Waterways Corporation Act, and build the community in the public interest.

On July 15, 1931, a lease arrangement was entered into between the city of Burlington, Iowa, through their dock board, and the Inland Waterways Corporation for a period of 25 years, leasing the Corporation the exclusive use of the terminal facilities.

Our members have large investments along the Mississippi River, bounded on the south by Quincy, Ill., and the north by Rock Island, Ill. By reason of our elevators being located on the Mississippi River, a number which are served only by water transportation, we are in a position to pay and do pay the farmer 5 to 7 cents per bushel more for his grain, when transported by water, than would be possible on grain moving all rail. Meetings have been held with farmers and their groups, and in each instance they are in support of our action in opposing amended bill S. 211.

The pioneering stage of the Federal Barge Lines, and the purpose of Corporation under the act, has not reached the point of restricting its operations, or liquidation, and/or sale as set forth in amended bill S. 211, section 3 (g) and (h), and the provisions of the amended bill is not in the public interest. The bill reads in part:

"(g) The activities of the Corporation shall be primarily in the fields of pioneering and research in the development of its carload and less-than-carload traffic; in the development of modern and efficient public terminal facilities, open to all on equal terms, including rehabilitation and modernization of existing terminals; and in the development of all types of traffic on newly improved rivers where it is presently authorized to operate, including the Missouri River.

"(h) Except with respect to traffic in grain and soybeans and traffic originating at or destined to points on newly improved rivers, including the Missouri River, the Corporation shall not substantially expand its bargeload traffic where privately owned barge lines and terminals are ready, willing, and able to provide adequate service."

The Federal Barge Lines is the only common carrier of general commodities operating on the upper Mississippi River, the act provides for continued service as a common carrier. In fact the Federal Barge Lines is the only carrier operating on the upper Mississippi River that has the over-all authority to so operate as a common carrier, and the Corporation is required by a mandate of Congress to continue to perform the service, which service was during the season of 1948 and so far in 1949 is most satisfactory, and neither is such a type of service authorized under the act.

In the late thirties the Federal Barge Lines did show a profit and everyone on Capitol Hill and taxpayers, I would assume, were happy. However, during World War II our Federal Government converted a portion of the best floating

equipment to transporting war materials, principally converting a certain type barge into units to transport petroleum products and other war materials. This equipment was never returned to the Corporation, and had it been returned, the wartime wear and tear on this equipment would have made the equipment inadequate to meet the shipper's need and the equipment was obsolete for river transportation.

The balance of the Corporation's equipment is obsolete, with exception of the intregated tow, Harry S. Truman, which was designed to operate on the lower Mississippi River, and cannot practically be used on the upper Mississippi River, by reason of our 9-foot channel. In short, the only conclusion to be derived is the Federal Barge Lines was left in, and is now in such a badly run down and obsolete condition, that the Corporation cannot possibly perform the continued service, and neither is the Corporation in a position to carry on the mandate of Congress under the act.

The condition of the floating equipment and the lack of equipment became so bad last year it was necessary for the Corporation to impose embargoes. Complaints were filed with the Interstate Commerce Commission, and as a result after the close of the navigable season the embargoes were lifted and complaints withdrawn. Since that time, and in fact during the season of 1948 and so far this year of 1949 very little traffic has been handled through the Burlington, Iowa, terminal by the Federal Barge Lines, or any other carrier, as our terminal is now open to all river carriers on the same basis.

The port of Burlington, located in Burlington, Iowa, is an old historical point, in fact the first store was established as a trading post in 1833, in 1834 the town having been know as Flint Hills was renamed Burlington. In 1838 the Iowa district was made a Territory and the first Iowa Territory Assembly was called at Burlington, the first capital, and the legislature met in 1841.

The geographical area which I represent is such as to serve adequately, through water terminals such as in Burlington, Iowa, and other facilities, and elevators, the territory in the States of Iowa, Nebraska, Kansa, Minnesota, North and South Dakoto, which States have a total population (1940 census) of 9,732,336, involving 448,959 square miles. Obviously the population during the past 9 years has increased very materially.

This territory is dependent upon agriculture and its products, the more important crops being grain and livestock. There is a heavy potential tonnage of grain which can and will move by water, the Federal Barge Lines, and by reason of the lower rate will return to the farmer from 5 to 7 cents per bushel more than if the traffice was moved by rail.

Natural resources, manufactured products and products of the land are in abundance in the great Mississippi River Basin, a part of which comprises those States set out hereinbefore, and including Missouri and Illinois, all of which on export as well as import traffic, warrants adequate and efficient river transportation facilities, which traffic is handled through the New Orleans, La., gateway going to markets in Mexico, Central and South America, as well as all parts of the world.

The territory mentioned is commonly known as the bread basket of the world, as well as our Federal arsenal in time of war, and the approval of amended bill S. 211 beyond a question of a doubt would result in the liquidation of the Federal Barge Lines which would seriously affect our interests, the farmers, and the economy of the territory.

We realize that our transportation facilities are indispensable in time of peace, as well as in time of war. Therefore, under the national transportation policy of 1940, Congress declared in part: 66 * * it is hereby declared to be the national transportation policy of the Congress to provide for fair and impartial regulation of all modes of transportation subject to the provisions of this act, * to promote safe, adequate, economical, and efficient service, and foster sound economic conditions in transportation and among the several carriers; * * * all to the end of developing, coordinating, and preserving a national transportation system by water, highway, rail, as well as other means, adequate to meet the needs of commerce of the United States * * We have before our Congress at this time two paramount issues:

1. The mandate of Congress expressed in the Inland Waterways Corporation Act has not been obtained.

2. Amended bill S. 211, its results will definitely eliminate the Federal Barge Lines.

The job required in the act is incomplete. Congress must make available the necessary funds to rehabilitate and operate the Federal Barge Lines as a going