REQUISITIONING OF RAILROAD PROPERTY TUESDAY, OCTOBER 13, 1942 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON INTERSTATE COMMERCE, The subcommittee met, pursuant to adjournment on Friday, October 9, 1942, at 10:30 a. m., in the Capitol, Senator Clyde M. Reed presiding. Present: Senator Reed. Present also: Senator Brooks and Byron M. Gray, Topeka, Kans., representing Kansas Corporation Commission. Senator REED (presiding). The subcommittee will resume its hearing. I think the Brotherhood of Railroad Trainmen have priority here this morning. Mr. MILLER. Thanks very much. This is the first priority we have received. Senator REED. I think you have seniority here in the matter of claim on first place this morning. Are you ready to proceed, Mr. Miller? Mr. MILLER. Yes, Senator Reed. STATEMENT OF MARTIN H. MILLER, NATIONAL LEGISLATIVE REPRESENTATIVE, BROTHERHOOD OF RAILROAD TRAINMEN, WASHINGTON, D. C. Mr. MILLER. I might say for the record that I am Martin H. Miller. I am national legislative representative of the Brotherhood of Railroad Trainmen, with offices at 10 Independence Avenue SW., Washington, D. C. The Brotherhood of Railroad Trainmen, a labor organization whose membership consists of railroad conductors, brakemen, switchmen, train baggagemen, switchtenders, car retarder operators, yardmasters, and highway bus drivers is vitally interested in the retention of all railroads needed and necessary to serve the citizens of the United States in carrying on the essential activities needed to insure victory for the United Nations and a lasting peace for the world. It is our opinion that the War Production Board, through its Special Projects Salvage Section, Bureau of Industrial Conservation, has requisitioned and ordered demolition of railroads without giving proper consideration to the need of such railroads to the people in their all-out efforts to serve the Nation at war. As has been previously testified, the War Production Board has requisitioned railroads and parts of railroads without public hearing or notice to the public. This, we believe, to be unfair and unreasonable procedure, especially when there has seemingly been no consideration given to the patrons along such lines of railroad. Railroads have been and the tracks torn up when farmers and businessmen e had planted crops and entered into contracts, with the ****y y'at such crops and such manufactured products could be An expeditiously hauled over the particular railroad which resisitioned and torn up. We are of the opinion that such dae does not add to the national unity in the prosecution of our On the contrary, it has a tendency to discourage and embarres the farmers, the manufacturers and their employees, who have Jen udhanly, without notice or without having a voice, denied oppormory to orve the Nation by not being able to transport their products formolot and to destination within the reasonableness that they had a what to expect when they planted such crops or entered into such conIn some instances, it has meant fear of unemployment and de placement from their home communities, with the resultant disagreeableness accompanying such occasions. " To give you some idea of the suddenness with which the War Production Board strikes with its requisitioning orders, as far as the pubTie is concerned, the Illinois Central Railroad has made application to the Interstate Commerce Commission for abandonment of its line of railroad from Red Oak, Ill., to Dodgeville, Wis. Hearings had been held by the Commission and a large number of witnesses testified as to the need of the railroad which served an important part of the Wisconsin dairy and cheese country, also manufacturing and other Lusiness concerns. The Commission had set a date for oral argument before its Division No. 4, to be held July 17, 1942. At the hearing the railroad company's attorney appeared and presented a copy of the War Production Board's requisition order, dated July 15, as his principal argument favoring the abandonment of the railroad. The protestants' counsel who were on hand and prepared for oral argument upon the facts as to the need for the continuance of the line of railroad in question. They did not have a copy, neither had they any inforination concerning the War Production Board's requisition order. It seemed to me, as it did to the others present, that the railroad and the War Production Board had been working closely together to carry out the desires of the railroad by having the road requisitioned immediately and forthwith rather than wait for the normal legal procedure, in which the people served by that line of railroad would have been given their legal opportunity to protect and defend their rights to public transportation service by railroad. Mr. J. J. Pelley, president of the Association of American Railroads, under date of June 30, 1942, issued a letter to the executives of member roads of the association, copy of which I desire to read into the record. [Reading:] ASSOCIATION OF AMERICAN RAILROADS, To Executives of Member Roads: TRANSPORTATION BUILDING, Washington, D. C., June 30, 1942. Please refer to my letter of May 13, 1942, file 38939, with reference to abandonments. Rail requirements for defense needs have arisen, from 15,000,000 feet as of May 1, 1942, to 40,000,000 feet today. This, of course, calls for an increased number of switches and other track accessories. This extreme need for any kind of track has become so critical that drastic steps are being taken by the War Production Board and the Army and Navy Munitions Board to cure this immediate crisis by either outright purchase or, as a last resort, by requisition. Since rail is used exclusively by ourselves and affiliated interests, we are the only source of supply that the Government can look to for these items. The War Production Board has in operation two salvage sections which are cooperating fully: The Industrial Salvage Section and the Special Projects Salvage Section of the Bureau of Industrial Conservation. Under this set-up, the Industrial Salvage Section has charge of the normal flow of scrap and the Special Projects Salvage Section handles all matters of salvage in which there are any political, financial, or legal aspects. A clear-cut, national plan has been worked out to comb every section of the United States for all used rail and switches. The plan has the indorsement of the Association of American Railroads. The plan has three main parts: 1. Under the direction of the Industrial Salvage Section, an intensive drive will be started to get in every foot of usable rail. 2. The Special Projects Salvage Section is especially equipped to expedite the various problems which arise in connection with abandonments. These may be considered in three classes: (a) Those now pending before the Interstate Commerce Commission. (b) Those previously rejected by the Interstate Commerce Commission. (c) Those being considered by management. (a) Special Projects Salvage Section is now working to help clear all current cases which are before the Interstate Commerce Commission. (b) Special Projects Salvage Section asks that you consider the reopening of every case which has been rejected where present circumstances might warrant such a move. Send us three marked maps with a digest of why you think the case should be reopened. (c) Send us three marked maps and pertinent data on any contemplated abandonment. When all the information has been furnished us, the matter will be handled with the Special Projects Salvage Section to endeavor to get clearances or rejections which are now required from affected Government agencies-namely, the Army, Navy, Office of Defense Transportation, and the War Production Board. 3. A close study of every spur track serving industry should be made. Wherever possible, unused or surplus track should be taken up. For special information regarding these matters, address Mr. J. Widman Bertch, Chief, Special Projects Salvage Section, Bureau Industrial Conservation, War Production Board, Room 3320, Railroad Retirement Building, Washington, D. C. In matters relating to normal salvage, address Mr. B. C. Bertram, Salvage Director of Railroads, Industrial Salvage Section, Bureau of Industrial Conservation, War Production Board, Room 3232, Railroad Retirement Building, Washington, D. C. Yours very truly, J. J. PELLEY. I call your particular attention to that part of Mr. Pelley's letter explaining the three main parts under paragraph (2), items "a," "b," and "c," wherein he calls attention that the Special Projects Salvage Section is especially equipped to expedite the various problems which arise in connection with abandonments: (a) Those now pending before the I. C. C., (b) those previously rejected by the I. C. C., (c) those being considered by the management. It seems self-evident that both the Association of American Railroads and the War Production Board are unwilling to permit the applications for abandonment pending before the Commission to proceed in the normal legal channel, which is fair to all concerned, giving the patrons and the public their day in court-an old American custom but a good one. They propose to have a reconsideration behind closed doors, closeted with secrecy, on the projects of abandonments which have been heard by the Interstate Commerce Commission which have, upon the evidence in the record, been justifiably denied in the interest of the people as being a public convenience and necessity in the transportation system. It also seems evident that the railroad bankers can now, through the efforts of the War Production Board, under the pretense of being in dire need in a war effort, rid themselves of the less profitable railroads and branch lines without any consideration of or notice to the public-the patrons-the people, who, after all, are the ones who will be responsible for building implements of war and furnishing the manpower necessary to win this war. I desire to take this opportunity to approve and concur in general in the statement made by Mr. J. G. Luhrsen, executive secretary of the Railway Labor Executives' Association. The officers and members of the Brothehood of Railroad Trainmen have rendered very valuable assistance to the Salvage Section of the War Production Board in locating and reporting available salvage metals along the railroads, which include unused rail and tracks, locomotives, and other scrap material. In this connection, I desire to read into the record a letter, dated July 29, 1942, which President A. F. Whitney of the Brotherhood of Railroad Trainmen wrote to the officers and representatives of our organization [reading]: GRAND LODGE, BROTHERHOOD OF RAILROAD TRAINMEN, General Offices, Cleveland, Ohio, July 29, 1942. To all Officers and Representatives, Brotherhood of Railroad Trainmen in the United States. DEAR SIRS AND BROTHERS: This is being addressed to all of our officers and representatives because it involves a serious patriotic duty incumbent upon all of us. On July 28 President Roosevelt warned of acute shortages and urged the searching of attics, cellars, and closets for all types of scrap to feed our war machine, pointing out that the more scrap that comes in, the more planes, tanks, and guns that can be built. We stated that a serious lack of raw materials was limiting American war production and called this our No. 1 supply problem. When in doubt as to whether a scrap article will help the war effort turn it in, said the President. Today Mr. Bert C. Bertram, Salvage Director, Railroads, Industrial Salvage Section, Conservation Division, War Production Board, called on me and commended our brotherhood for its initiative and vigorous efforts in locating and reporting railroad scrap sources. He declared that the problem of obtaining sufficient scrap metal is now very serious and put forth desperate efforts to locate and promptly report any and all sources of scrap metal, not only railroad scrap, but any other sources, such as abandoned mills, industrial plants, and mines. Mr. Bertram stated that such railroad scrap is high-grade material and that our members are especially well-fitted to discover sources of this vitally needed war material. We are assured that railroad managements will cooperate and our members need have no fear, for any lack of cooperation on the part of anyone would be met with prompt and decisive action by all of us who appreciate the vital patriotic service involved in discovering and reporting all available sources of scrap metal. I appeal to every member of this brotherhood to assume personal responsibility for discovering and promptly reporting to me by air mail all possible sources of scrap metal, giving the approximate tonnage, the exact location, and identification of the material and by whom owned. A responsible brotherhood member will be specially assigned at grand lodge headquarters to receive and acknowledge your reports and promptly transmit their pertinent contents to Mr. Bertram. By our united efforts we not only will give valuable aid to our Nation, but we may be able to uncover scrap in sufficient quantities to meet this emergency and make it unnecessary to abandon certain railroad branch lines, as suggested by the Office of Defense Transportation. Let me suggest that the wives and daughters of our trainmen's families will give us their wholehearted cooperation and wil be helpful in assisting our members in preparing their reports on the scrap metal located. Fraternally yours, A. F. WHITNEY, President. Senator REED. Had you finished, Mr. Miller? Mr. MILLER. I desire to thank the chairman and members of the committee for an opportunity to present our views relative to this most important subject. I am of the opinion that your committee is doing a great service to the people and to the war effort of the United States and the Allied Nations by investigating the methods of requisitioning of railroads. The people along such railroads, under consideration of being requisitioned or abandoned, are entitled to express their views and have their interests given fair and equitable consideration by the departments and war agencies of the Government. Senator REED. Mr. Miller, I think everybody understands, do they not, including your folks, that the reason I presented this resolution was the very thing you set out here, that the important interests in important communities were not being given consideration in the requisitioning process. If these cases could have gone forward to a determination by the Interstate Commerce Commission, which is the proper and usual procedure and the procedure created by statute, this resolution never would have been presented. It is because of the very thing that you set out there that this resolution was presented and passed, and consequently these hearings held. That is the situation, as I see it. Mr. MILLER. I agree with you, Senator, that the people, especially in time of war, should not be asked to make undue and unnecessary sacrifices. Certainly, in time of war, we must make sacrifices, but when we suspend legal procedure, especially in taking up transportation lines-in many instances the rights-of-way of these railroads have been donated by the property owners along the right-of-way for the purpose of having these transportation facilities, and then to have them taken as if it was in the darkness of night, without their day in court, there is a bitter resentment, and I think justifiably so. Now, we have any number of those instances. Senator Brooks called attention of the committee to the proposed or attempted requisitioning of the Illinois Terminal Co. in western Illinois. There is an instance in Indiana, which was recently uncovered, where an entire railroad in receivership was about to be requisitioned, because in my opinion the receiver saw a chance now to get out without facing public inquiry through a Commission hearing. I am referring to the Chicago Attica & Southern Railroad, approximately 164 miles, all within the State of Indiana. There are numerous cases, which I do not have at hand at the present time, where such procedure has been followed by the W. P. B., I believe in conjunction and in conspiracy with the Association of American Railroads and the railroad bankers, in an attempt to get rid of the unprofitable lines. That is all. Senator REED. Thank you very much, Mr. Miller. Senator Brooks, did you have anything? Senator BROOKS. No, Senator. Senator REED. I believe there are other railroad representatives here that desire to be heard. Was there anybody else now? |