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i • <br />TRS TRUCKING SXAMPLfi: MARRfiT SETS COMPBTITIVfi RATBS <br />All those who have been working to right the balance between <br />captive shippers end monopoly railroads the past few years have <br />long been aware of two things about railroad spokesmen: <br />1. Their refusal to answer directly why they, alone among <br />major industries in the United States, should continue to have <br />special privileges and exemptions long after the railroads have been <br />relieved of most regulatory restraints where there is competition. <br />2. Their tactic of dragging red herrings across the trail. <br />A most recent example of this was the Association of American <br />Railroad's response to introduction of the Clayton Act Amendments <br />of 1987 by Senator Dennis DeConcini, Senator Alan K. Simpson, <br />Representative Mike Synar, Representative Dan Glickman, Representative <br />Hank Brown and 20 other House members. <br />Failure of 5.443 and H.R.941 to include the motor carrier <br />(or trucking) industry in the bill's antitrust changes led Tom <br />Tidd, vice president, law, for the AAR to say that the bill: <br />". discriminates against railroads even though trucks <br />are regulated by the ICC, you can't enjoin them but you can go <br />after us ." <br />The AAR knows very well that it is virtually impossible for <br />truckers to create or maintain a monopoly. There are Interstate <br />Highways and good publicly built and maintained highways below <br />the Interstate standards that are open to any motor carrier. <br />Right of Bntry is no longer a problem, even though there is still <br />some regulation of trucking and the industry is divided over how <br />far deregulation should go. It is railroad monopoly pricing that <br />is hurting captive shippers, not trucks. <br />The lead editorial in The Journal of Commerce for February <br />19, 1987 (attached) makes it completely clear that there is no <br />need for including trucking in an examination of railroads' <br />misuse of their monopoly powers to overcharge captive shippers. <br />I commend a reading of this editorial to you as an aid in demolishing <br />railroad arguments against the Clayton Act Amendments of 1987, <br />H.R.941 and 5.443. <br />Weeks before the 1987 bills were introduced, research was <br />done on whether the proviso in Section 16 of the Clayton Act had <br />ever been used in a lawsuit involving trucking. Both the Library <br />of Congress Legislative Reference Service and a law firm specializing <br />in transportation antitrust matters, Grove, Jaskiewicz, Gilliam <br />and Cobert, confirmed that the proviso has been applied only in <br />cases involving railroads. Motor carrier regulation has been in <br />effect more than 50 years, end no use has been found by truckers <br />or their customers for this act. As far as trucking is concerned <br />in 1987, it is a non-issue. <br />