| OCR Text |
Show -6- national policy this basic fact of economic life, that government regulation is not an effective substitute for vigorous American competition in the marketplace." If applied to trucking this philosophy would return us to the chaotic competitive situation prior to 1935. The major criticisms of a regulated motor carrier transportation system by the "deregulators" can be condensed into four basic categories: 1. The ICC promotes monopolies, therefore, more competition is needed. 2. The ICC prevents new carriers from entering the system. 3. The ICC allows rate bureaus to fix prices. 4. The ICC causes 40 percent of all trucks to run empty back-haul miles. Without a great deal of research it is easy to state the simple facts in answer to these criticisms: 1. There are 18,000 companies under ICC regulation. 15,000 are trucking companies (that appears to be adequate competition.) 11,380 have annual revenues under $300,000. The four largest account for only 10% of the total revenue and the eight largest for only 14%. Compared with the auto, steel, and cigarette industries, it is difficult to see how monopolies exist in trucking. 2 Last year 4,762 new applications were filed by truckers to obtain operating authority, based upon public convenience and necessity. 3,911 or 80% were approved, based on the |
