# Transcript of Record — In Re McConnell

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Transcript of Record
- **Published:** January 1, 1962
- **Citation:** 370 U.S. 230

## Text

y iii

Plaintiff's
Exhibit
Number Description Page
44 Two-page memorandum dated November 17,
1955, re Erickson-Cross .......ccccsscccscsssscreres 102- 103
45 Lasham Cartage Co. request to Hugh E.
Cross for quotation on equipment, dated
BERG B0, TED nceictecieierncndinnins 104-105
46 Lasham Cartage Co. request for quotation
on equipment from Hugh E. Cross, dated
es 106-107
47 Purchase order from Lasham Cartage Co.
to Carrollton Farm Supply, dated achial 12,
TE. sausicisinisncasietasidicdiinneaninneeainiainialaannataanein 108
48 Lasham Cartage Co. purchase order shied
with Carrollton Farm Supply, dated April
He HIS ‘soistacssathasasaspashentipeasnciasanideabesioasdndiianidennaad 109-110
49 Letter from Hugh E. Cross to Newman of
Lasham Cartage Co., dated April 14, 1955 .... 111
50 Letter from Hugh E. Cross to United States
Freight Co., attention Ray Newman, dated
NE Th I bragieedocinecpatcisenecenmemterssbiatoaniccemeies 112
51 Union League registration for Hugh W.
Cree, GE BE BE, TOD ccsciiscsicsccssiecs 113
52 Union League Clzb registration for Hugh
W. Cross, dated June 28, 1955 wn ccseceees 114
53 Hand-written letter from Diver to Cross,
Se UI BO Miiethiccreinicsiatnininineietinenniinn 115
54 Hand-written letter from Cross to Diver,
RE Sy I shkence 116
55 Articles of Agreement, dated July 11, 1955,
between Hugh W. Cross and Helen M. Cross
and Marguerite K. Erickson ..........sssceseeee 117-120
56 Exclusive real estate listing executed by
Cross with W.C. & A.N. Miller Dev. Co.
Els ND cecciicetintsnnenenniion 121
57 Hand-written letter of Cross to Diver, dated
PEE iG BED: cia scichicsadiennsicainnsdeemsinntieiniicianiabiien 122
58 Union League Club registration for Hugh
W. Cross and Mrs. Cross, dated August 7,
ED ildicisahnsiaiiiunedinaiasitbcincladecsinasiabsasanhinedatiatiansianepniien 123
59 Hand-written letter of Cross to Diver, dated
EE Sita TE peciniaeceesncaeccansnciiiearesni oechainiateonionbcmnien 124
60 Letter of Hugh W. Cross and wife to Wilbur,
dated November 18, 1955 we eeeeeeeees 125
61 Letter of Hugh W. Cross and Mrs. Cross to
Erickson, dated November 18, 1956 ............... 126
62 Report of hearing before Committee on Gov-

ernment Operations re Hugh W. Cross, dated
IO Tk, TO Wicitiieetcscstnienons 127-212

~, iv

Plaintiff's

Exhibit

Number Description Page
63 Annual Report of Committee on Government

Operations, 84th Congress, dated January

as NEE senrdineiinsinsinovatailineeancapeasannncecleidaanieogisabial 213-256
64, 64a-64z, 64aa-64nn

OUND COTE BUND ocniccscsreessrenctensncinsgiervins 257-270
65, 65a-65n

Long distance toll slips wo... eeseeeeeeees 211-275
66, 66a-66i

Long distance toll slips ....scseseseseeseeeeees 276-277
67, 67a-67i

Long distance toll slips ...........ccccescseseeeeeees 278-280
GS _- Hotel registreticm Gin onccsesccescssscsecescscssssiessecscsess 281
69 Summary of telephone toll slips ................ 282-288
70 Telegram dated May 26, 1955, from Johnston

De MMI ins scan ecsptncehacbdacasccsconosccacenesipceeiantic obadienceiidetdlidin 289
71 Memorandum dated May 20, 1955, from Kim-

IIE caititdie wists ueitannatiniasieseidacmaccebiais 290
72 Memorandum dated April 29, 1955, from

OF ge ERE er ae eee OO 291
73 Smart pencilled notes (I.C. 28) oc... 292
74 Smart pencilled notes (Johnston exhibit 5) .. 293
75 Letter dated March 24, 1955, from Baird to

STIR. ‘ttsertinnhctasecnsice aa duamnbicsincemittnscaseiabahainataoieiai 294
76 $Two-page Jetter dated April 27, 1955, from

BE “SP INE centacusaiiaseicnsiainientonsiiccnenl 295-296
77 Tw?-vage memorandum dated May 20, 1955,,~

GEE SIPING shidcswhiitinias Aoncetnieiccmtheineeasinceiacenents 297-298
78 | Memorandum dated May 26, 1955, from Baird

Ra Re Cas E Rn Fem Sore eMart ene we eaee ROA oy 299
79 Memorandum dated May 31, 1955, from Baird

DD HPO isendacscncssntsbaneintdiansiealnienmatmimaaaaaiaend 300
81 Letter dated August 10, 1955, from New

York Central and Chicago Rock Island and

Pacific Railroad Co. to Parmelee, Yellow Cab

Co., amd Checker Taxi Co. .......ccccccccccccsscsssscese 301
82 Bone 1955 notes (New York 121-134) ....302-316
83 Memorandum dated 5/17/55 of A.R.H. to

SII etinisachseahariesiahictenldgianceidiaiien saticlaihanlcesiiedataelahadeintdians 317

Three-page memorandum dated May 19, 1955,

| SRE meee 318-320
85 Letter dated May 20, 1955, from Bone to

IEE beasesisadidiclsin sickens heclaibalaccnsiniasiiipiaadhnatilansineiganme 321

Letter of Bone to Whited, dated May 23,
1955, together with copy of letter dated May
20, 1955, from Bone to Baird ..................00 322-323

v

Plaintiff's
Exhibit
Number Description Page
87 Letter dated May 23, 1955, from Bone to
IIE: sala dssuchnisashieseatcigsseiiesianbiekesncednaxonmastsiannintanate 324
87a Memorandum dated May 25, 1955, from Ner-
BE OEE. TUITE: GIUIED Vnsiscsindtanstsnssaccnénetseniseshssnn 325
88 Letter dated May 24, 1955, from Bone to
I iit sich dish cite sabbhatidiaciaiaientienibileassteas 326
89 Memorandum dated October 6, 1955, initialled
DIR i IIIS 1i5scsutshah iheisdenicarabotenesiniensatinennesss 327
90 Pencilled note of Coleman to Carpi, dated
RII UII ssa ccedassaisidsaadeomnceanstpeesacaicgaci seams 328
91 Memorandum dated June 16, 1955, from
TET IID TEU nda bidescinchcaieasctenesceensniiansansearconeneigins 329
92 Memorandum dated June 7, 1955, from E.R.C.

93

97

98

99

100

101

102

103
104

to E.M.H., together with call for meeting,
Chicago Terminal Lines, dated June 3, 1955,
prepared by Padrick and Winkler ............ 330-332

Memorandum dated June 14, 1955, from
E.M.H. to E.R.C. re Chicago Terminal Lines

meeting of June 13, 1955 wc eseeeeneees 333-334
i a a Ree 335
Four-page letter dated March 15, 1955, from
Be: WD IIE exisistanecsissnnneieeticneree 336-339
Letter dated May 20, 1955, from Markin to
MINI +" cicsiniesiceabteiciinte eshinciiesdelipabiousidainataadiendaecianaianieaah 340

Transmittal letter dated December 15, 1954,
from Keeshin to Bone, together with proposal
for transfer and handling of passengers and
ING « sccecsserssnssninserscennnnmainnsentmenciinnnnenanansenman’ 341-355

ON EES CC eae i eRe eee RN A oP Sty en Ae 356

Three-page letter dated April 6, 1955, from
SRR: WO TN oa necnsnasticteersinrcnetrnnnne 357-359

Transmittal letter dated September 27, 1955,
from E. B. Padrick, together with final con-
tract with Railroad Transfer Service, Inc.
effective October 1, 1955 un... sseeeesseees 360-381

Parmelee Transportation Company summary
of revenues and expenses for a period from
January 1, 1946, to September 30, 1955 ........ 382

Railroad Transfer Service, Inc. summary of
income for a period from October 1, 1955, to
PO Bh, TOGO cccciernnicnnicmiinmenite 383

Daily News; Article re case, May 3, 1960 .... 384

Chicago American, Article re case, May 3,
ee ssc icabetiaeceeni ebbcadadlateounslidsipnmancghieiaain 385

a

vi

Plaintiff's
Exhibit
Number Description Page
105 Chicago Tribune, Article re case, May 4, 1960 386
106 Chicago Sun-Times, Article re case, May 4,

MEE | Wisisicnicssasiteictneiesienscesreci inhi enesehanedeahiiasebccaivsceantllaeie 387
107 Parmelee modified proposal submitted to

BI
at 5:10 p. m., Friday, mee 18, 1955. In view of the difference of time, the 5:10 in

—246—
PLAINTIFF’S EXHIBIT 63 (Continued)

ANNUAL REPORT 31

some jokers in their proposal in that their contract states that for every 1 percent
decrease in receipts there will be a 1 cent raise in tickets;which clause is not in
Keeshin's bid.

In addition, Keeshin offers eight passenger station wagons, heated in the
wintertime and air conditioned in the summer, they would put any suggested
name on them the railroads decide upon, they would handle baggage every hour
ow the hour between the various stations, and they would have representation
here in Chicago as against the absentee representation by Parmalee.

He also stated that Keeshin’s proposal was backed up by the First National
Bank and they would get new equipment every 3 or 5 years (I am not positive but
I believe he said every 3 years).”

Mr. Feucht said that prior to receiving the call from Mr. Cross, he
did not know the details of the competing proposals. Upon checking
later he learned that these features as quoted by Mr. Cross were sub-

stantially accurate.

Wayne A. Johnston testimony

Mr. Wayne A. Johnston, president of the Illinois Central Railroad,
testified before the subcommittee that, sometime pridr to the final
decision on the contract in question, he was talking with Mr. Hugh
Cross in Mr. Cross’ office in Washington. Mr. Johnston said that he
had heard that Mr. Cross was planning to go to work for the new com-
pany to be formed by Mr. Keeshin to handle the transfer business and
therefore on this occasion he asked Mr. Cross whether the rumor he
had heard was accurate; whereupon Mr, Cross said that if Mr. Keeshin
was successful in getting the contract he, Mr. Cross, was going to go
to work for him.”

Mr. Johnston was uncertain what position Mr. Cross would occupy,
Lut he was under the impression that Mr. Cross would be president
of the new company set up to handle the transfer business. Mr.
Johnston also testified that at no time did Mr. Cross ask him to give
favorable consideration to the Keeshin Co.”

Howard EF. Simpson testimony :

Mr. Howard E. Simpson, president of the Baltimore & Ohio Rail-
road, submitted affidavits in lieu of his personal appearance. In
these affidavits he said that during the spring of 1955 Mr. Cross called
him from Washington asking for an appointment and thereafter
came to Baltimore and conversed with him in his office. Among the
subjects discussed was the contract for the transfer of passengers
ve baggage between railroad stations in Chicago. Mr. Cross asked
Mr. Simpson the status of the negotiations, to which Mr. Simpson
replied that he did not know all the details but would find out and
inform Mr. Cross, which he did several days later. Mr. Simpson
- further said that Mr. Cross inquired about this matter a couple of
times later. Mr. Simpson said that Mr. Cross made no attempt to
influence his decision regarding which company should get the
contract.”

The records of the Chesapeake & Potomac Telephone Co., subpenaed
by the subcommittee, indicate four long-distance telephone calis, per-
son to person, from Mr. Cross to Mr. Simpson on April 18, May 3,
May 20, and June 8, 1955.° Two of these were made during the
working hours from the Interstate Commerce Commission telephone

but charged to Mr. Cross’ home telephone number.
* Ibid., p. 10.
® Ibid., p. 20.
® Ibid., p. 19.
© Ibid., p. 22.
@ Ibid. p. 25.

—247—

PLAINTIFF’S EXHIBIT 63 (Continued)

32 ANNUAL REPORT

Fred G. Gurley testimony

Mr. Fred G. Gurley, president’ of the Atchison, Topeka & Santa
Fe Railroad also submitted affidavits in lieu of of his personal appear-
ance and in these affidavits he said that he had heard “rumors and
statements” to the effect Cross would become associated with the
Keeshin 4 if it should succeed in securing the transfer
contract. However, he swore that he had no communication of any
kind either with Mr. Cross or Mr. Keeshin regarding the truth of
these —* or with Mr. Cross regarding the merits of the Keeshin
proposal.*?

In connection with this investigation the telephone toll tickets of
Mr. Cross’ home telephone number, along with that of Mr. Keeshin’s
home and business telephone, were subpenaed from the telephone
“company having gry he them. An examination of these calls from
the period March 15 through September 1955 shows a total of 32

rson-to-person telephone calls between Mr. Cross and Mr. John L.
Xeeshin. Of these, 18 were from Mr. Cross to Mr. Keeshin and 14
were from Mr. Keeshin to Mr. Cross. Af] but four of the Keeshin-
to-Cross calls were made to Mr. Cross’ home.“

It will be noted that these conversations took place at various times
during the day but more often in the afterwork hours. In addition,
it was noted that a number of these calls lasted for substantial lengths
of time. A breakdown follows:

Number of calls up to 6 p. m.....----------.---~-----------4--------------- S
Number of calls from 6 p. m. to 9 p. m_-.---.--------------------- cae keaeuedokis 8
Number of calls from 9 p. m. to midnight__------------------------------- 14
Number of calls on which the time is not indicated__....----.----------- 2

TUOER.. .... c.nocctcnccnctnccusencsscdcccoensncapesaccsnanensacsnsanne 32

It will be further noted that the length of these conversations is
broken down as follows:

Up to 15 minutes. ...........-.....------~----------------------------- 13
SS Ob ee SN .o ececnceacnennnceuccas Mh ch diene ne ke rane ame ees 17
i ne. 8. LARS GRNS SAREE RREEATROMER REGS ERGER ERR 2

IIe Sete Dh Neng nS NE | aid aah cident Ek oe IS 32

J. L. Keeshin testimony

When Mr. Keeshin testified before the subcommittee, he stated that
in connection with another firm he had tentatively planned to buy
more than a year ago, he had told Mr. Cross, who is a personal friend
of many tpn duration, that if the transaction could be consummated
he would like to have Cross come to head up the company.“ He
said this purchase was not concluded and therefore the condition for
the offer was not fulfilled. However, he said:

I told him then that if at any time he wanted to go back into business and
wanted to become associated with me I would be very happy to have him asso-
ciated with me.“

Mr. Keeshin told the subcommittee that there was no specific offer
in connection with the contract for the intracity transfer service in
Chicago.”

+ 4
om
- 4
—_
-"
SPPPP
wm & Wats
SESRS

—248—

PLAINTIFF'S EXHIBIT 63 (Continued)

ANNUAL REPORT 33

Mr. Keeshin, in his sworn testimony, informed the subcommittee
that he had discussed the contract for the Chicago transfer business
with Cross and added:

I wanted his views as to the fact that I was going into a different phase of
this business of mine, and, like anything else, being he is my friend, if the

octasion arises, that he could pass a good word for me, naturally I would hope
he would do it.”

In another instance, Mr. Keeshin said with reference to Mr. Cross:

* * * and he said if ever the occasion arose, he would pass a kind word
for me.™

In another instance Mr. Keeshin said:

When I got the contract, I called him and thanked him fer what help he did
five me, if he did give me any * * *™

Mr. Keeshin stated that he is a close friend of Mr. Cross, that they
talked frequently by telephone, and that‘this Chicago contract was
often a subject of discussion.”

Hugh W. Cross testimony

Mr. Hugh Cross informed the subcommittee in his sworn testimony
that in his opinion and in retrospect he had been “indiscreet” in dis-
cussing this contract with officials of the interested railroads.” Te
informed the subcommittee that he has been personally friendly with
Mr. Keeshin for a number of years. He said that probably in compli-
ance with Mr. Keeshin’s request that he determine the status of the
matter he made an appointment with Mr. Simpson, president of the
Baltimore & Ohio Railroad, and discussed the matter with Mr. Simp-
sor inquiring about the current status. On one or more occasions
later he also inquired from Mr. Simpson, and on each occasion Mr.
Simpson informed him concerning the situation at that time regard-
ing the Chicago contract.”

Mr. Cross said that he is a close personal friend of Mr. Johnston,
president of the Illinois Central Railroad and has been such for a
number of years. He said that at some informal gathering which both
attended, Mr. Johnston facetiously asked him if he was going to go
to work for Keeshin. He said that since he considered Mr. Johnston's
remark to be in jest, he did not make a flat denial. Ile said, however,
that he did not tell Mr. Johnston that he would go to work for Mr.
Keeshin if Mr. Keeshin got the Chicago contract.”

With reference to the telephone call to Mr. Feucht, Mr. Cross said
that, as a member of the Interstate Commerce Commmission, he was
interested in the welfare of ll railroads. He said the situation of the
Chicago & North Western Railroad was of particular interest to him
for various reasons including the financial plight of the railroad and
the isolated geographic location of the railroad station in Chicago
requiring more transfers within the city. He said he called Mr.
Feucht and gave him some details of Keeshin’s bid in order to insure
that Mr. Fencht and his subordinates would give adequate attention
and study to this matter and arrive at the solution which was to the

* Ibid., p. 40.

® Ibid. p. 41.

@ Ibid. p. 46.

* Ibid., pp. 37, 40, and 41.
. 59, 65.

™ Ibid., pp. 60, 75.

" Ibid., p. 79.

—249—

PLAINTIFF'S EXHIBIT 63 (Continued)

34 ANNUAL REPORT

best interests of the Chicago & North Western Railroad.”* In this con-
nection the following testimony was recorded :

Senator Ervin. You were afraid that without the suggestion from you that
the president of the Chicago & North Western Ra!!road might not take the trouble
to find out which 1 of the 2 or more bids was the best for the railroad. And
therefore you called him to suggest that he decide the matter on the merits and
take the one for the best economic advantage of his railroad. Is that correct?

Mr. Cross. I assume that that is substantially correct, Senator.”

Mr. Cross was questioned by subcommittee members concerning his
apparent knowledge of the contract negotiations as demonstrated in
his conversation with Mr. Feucht. In response to such inquiries Mr.
Cross, although he later qualified these answers, stated :

Mr. Cross. I did not have any knowledge as to the specific terms of the bids.”

Mr. Cross. I did not know what the other bid or bids were * * *."

The CHarRMAN. Did you know at that time anything about the Parmelee inter-
est's bid, as to what rate it had proposed in its proposal?

Mr. Cross. No; I did not.

The CHARMAN. Did you know that it had revised its proposal downward?

Mr. Cross. No; I did not.

The CHAIRMAN. You did not discuss that with Mr. Feucht?

Mr. Cross. No.”

Mr. Cross told the subcommittee that at no time did he have any
thought of asserting his influence in favor of Mr. Keeshin and that
his possible employment by Mr. Keeshin had not been discussed in
connection with this contract.”°

With reference to Mr. Keeshin’s contact with Mr. Cross, Mr. Cross
said the following:

The CHarRMAN. In those conversations did tie at any time ask your assistance,
or help in any way, in connection with securing this contract ?

Mr. Cross. I think that he inferentially at least, did.

The CHAIRMAN. In what manner, Mr. Cross? ,

Mr. Cross. I think that he didn't ask me to go out and talk to people, if you
mean that.

The CHAIRMAN. What did he ask you to do?

Mr. Cross. I think he said to me if I could put in a good word for him, he
would appreciate it.

The CHAIRMAN. Did you agree to put a good word in for him?

Mr. Cross. I don't think that I agreed to that.”

Following the testimony hereinbefore described, which took place
on November 15, 1955, Mr. Cross resigned his Government office to
take effect ifimediately upon acceptance on November 23, 1955. For
this reason it was the decision of the subcommittee that no useful pur-
pose would be served by a further inquiry into this matter.

The subcommittee feels that Mr. Cross made a mistake and acted
indiscreetly in his position as Chairman of the Interstate Commerce
Commission. It agrees his resignation was quite proper under the
circumstances.

_ Since Senators Karl E. Mundt and George H. Bender did not par-
ticipate in the Hugh W. Cross matter, they neither concur nor endorse
this section of the report.

—250—
PLAINTIFF'S EXHIBIT 63 (Continued)

ANNUAL REPORT 35

Tarirr oN Importep WatTcirs

The subcommittee received an allegation that the Treasury Depart-
ment Bureau of Customs has failed to collect a duty imposed in the
Tariff Act of 1940 on jeweled watches containing 17 or fewer jewels.
The specific duty is applicable to adjustments performed on these
watches prior to their shipment into the United States. It is alleged
that prior to the passage of the Tariff Act of 1930, which imposed the
duty on adjustments, most foreign watches were shipped into the
United States marked “adjusted.” a to the passage of this
act most of them have been shipped into this country marked “unad-
justed.” The allegation is that these watches actually are adjusted

ut are marked “unadjusted” in order to void the tariff.

It is further alleged that this enforcement failure has three major
results :

1. The loss of revenue to the United States Government of at
least $238 million since the act was passed.

2. The placing of the United States watch-producing industry
at a severe competitive disadvantage as compared to its counter-
part abroad, particularly in Switzerland.

3. The loss of skills developed in the production of watches
which are applicable and necessary to defense industries.

The subcommittee held hearings in executive session on this subject
on June 29 and 30, 1955, and January 10, 1956. Among other wit-
nesses, Under Secretary of the Treasury H. Chapman Rose testified
on the last two of these dates. Following his first appearance, Secre-
tary Rose caused an investigating team to conduct inquiries in Switzer-
land and in the United States concerning this problem. He stated
that upon receipt of its report and the completion of a study he is*hav-
ing made here in this country, he will report the Treasury's findings
and recommendations on the matter to the subcommittee.

The subcommittee will thereafter issue its report on this subject,
based on its investigation.

Starr Srupy on Reperecrion

During the year the staff made a study of the redefection campaign
in Europe, which is a concentrated effort of Communist countries to
induce people who have fled communism to return to their homelands.
It became apparent during 1955 that the problem had become a matter
of major-significance.

Some 360,000 refugees are the target for various redefection media
utilized by Communist countries. This number is the residue of some
10 million non-German refugees and displaced persons in Western
Europe since the close of World War IT, coupled with well over 600,-
000 people who have since fled from Russia or one of her satellite coun-
tries tothe West. Health, age, lack of certain skills required by immi-
gration and sometimes criminal] and even pro-Communist records have
made resettlement for the majority of the 300,000 somewhat hopeless.
This problem is a continuing one, as refugees every day flee to the
West for asylum.

Throughout the years the United States has participated either
solely or with other countries in various programs aimed at findin
a solution to the problems of refugees. Its active interest is indicat

—251—

PLAINTIFF’S EXHIBIT 63 (Continued)

36 ANNUAL REPORT

by the fact it has resettled in the United States some 500,000 persons,
which is almost as many as have been resettled in all the other coun-
tries of the free world put together. At the present time the United
States participates in four groups: Intergovernmental Committee for
European Migration which deals primarily with migrants (including

refugees) out of overpopulated Europe, the organization under the

Refugee Relief Act which deals only with the issuance of visas, the
Office of United Nations High Commission for Refugees, which seeks
to aid those not qualified for resettlement, and the escapee program
which lends assistance to the refugee, both from a welfare standpoint
and resettlement. This latter program, which was established aac
22, 1952, renders aid to persons who escaped from Russia after Jan-
uary 1, 1945, and to refugees from a satellite nation after January 1,
1948. Because of these restrictions and the fact that for policy rea-
sons —— from Yugoslavia do not qualify, only 30,000 persons
are eligible for escape aid. Through this assistance this group main-
tains a standard of living somewhat higher than the other refugees.
The administrative aspects of this program are handled by the em-
ployees of the International Cooperation Administration, but the
actual implementation from an operational standpoint is by non-
governmental workers, namely, voluntary agencies.

These agencies, who for — years have endeavored to assist the
refugees, have continued to work under this escapee program. They
operate on the basis of contracts which, within the limits of the ap-
propriation, permits them to actively assist the refugee in skills, educa-
tion, orientation, and resettlement problems.

The refugee is housed either in a camp or regular housing, but this
does not mean that he enjoys the comforts of life. In Germany, for
example, the sum of 35 cents a day is allotted for his livelihood. Since
he is not allowed to work, even if able, pending a check by the Govern-
ment of asylum which takes some several months, he often lives where
the slumlike conditions have bred unhappiness and discontent border-
ing on desperation.

he files of this subcommittee have documentation showing that
newspapers, radios, circulars, chain letters, and personal letters to
refugees from Iron Curtain countries urging their return have in-
creased within the past year to the point of it becoming a concentrated
plan on the part of Communist nations. Some of these satellite coun-
tries have declared an amnesty to refugees, but this is only one of the
facets for the success of the redefection program. Length of resi-
dence in camps, the low subsistence of living, inability to work, hope-
lessness for the future, and fear are ail factors that must be considered
in the redefection campaign.

The number of persons who have actually redefected is unknown.
The only known figure is that of the escapee program, which shows
some 2,700 persons have disappeared. The redefection campaign has
had an unsettling effect, and the free world is in danger losing a
propaganda advantage which it has thus far maintained.

East-West TRape

The subcommittee has continued during 1955 its close watch on
the trade between our allies and the Communist world. The most
recent statistics on the dollar value of free-world trade with Com-

—252—

PLAINTIFF’S EXHIBIT 63 (Continued)

ANNUAL REPORT 37

munist China made available by the Commerce Department disclose
for the first 6 months of 1955 the value of this trade to Red China
to be 394.1 (millions of dollars). For the same period of 1954 the
figure was 310.6 (millions of dollars). This is an increase of $83.5
million in this 6-month period. 7

In addition, the latest trade figures furnished the subcommittee
by the Defense Department disclose that the number of Western-flag
vessels moving in and out of Chinese Communist ports continues to
increase at an alarming rate.

These figures show that for the first 8 months of 1955 vessels flying
the flags of non-Communist countries and totaling 7,136,202 gross
tons, made 1,187 trips in and out of Red Chinese ports. For the same
period in 1954 these vessels had a total gross tonnage of 5,650,091
and made 935 trips in and out of Red Chinese ports. This is an
increase in 1955 of approximately 1,400,000 gross tons and 252 trips.
On the basis of these statistics our allies shipping to China in 1955
will surpass the former peak year of 1954.

A closer look at these statistics graphically portrays the tremendous
contribution British-flag vessels are making in the carriage of goods
to the Red China mainland. hactodneaely 53 percent of the vessels
involved in this trade during this 8-month period were under British
registry and flying the British flag.

An analysis of the voyages of these vessels shows a substantial
number carried cargoes from European Communist countries to Com-
munist Chinese ports. This is a practice that was prevalent during
the Korean war, and it is obvious that our allies are continuing to
render this major economic assistance to the Communist world.

The subcommittee once again wishes to draw attention to the val-
uable contribution made by Communist-controlled shipping companies
— out of the British Crown colony of Hong Kong to Red

‘hina’s economy. A majority of the vessels operated by these Com-
munist companies fly the British flag and, therefore, are accorded the
protection of the British Fleet.

One of these companies, the Far East Enterprising Co., Ltd., of
Hong Kong, was singled out in 1953 for its activities during the
Korean war in chartering Western-flag vessels to carry goods to the
China mainland. Nothing was done by the British at that time.
The subeommittee on March 13, 1955, made public the fact that the
Finnish tanker Aruba, which was carrying jet fuel to the Red China
mainland, had been chartered for this trip by the Far East Enter-
— Co. and that this company, although operated out of Hong

ong, was actually own and controlled by the Chinese
Communists."

The subcommittee also made public the fact that the Swedish-flag
vessel Sunnanbris carried strategic materials to the Chinese mainland,
even though the ship’s manifest listed its cargo as “lawful
merchandise.”

The subcommittee feels that our allies, particularly the British, are
making major contributions to the Chinese war economy. As pointed
out in another part of this report, at least 11 Americans remain im-
prisoned in China while our allies’ trade with China increases. The

@ The Arube never did arrive in Red China, as it turned back about March 22, 1955.

—253—
PLAINTIFF’S EXHIBIT 63 (Continued)

38 ANNUAL REPORT

role of our allies on this matter during the Korean war and during
this unhappy postwar period is a matter of deep distress to the
members of the subcommittee. —

Purcuase or Locomorives ny THE Sranisi GOVERNMENT

By a telegram dated March 8, 1955, the Baldwin-Lima-Hamilton
Corp., Eddystone, Pa., complained to this subeommittee that an award
for the purchase of diesel locomotives by the Spanish Government
had been made to the American Locomotive Co., despite the fact that
Baldwin-Lima-Hamilton was a lower bidder by about one-quarter of
a million dollars, and that these locomotives were being purchased
by the Spanish Government with funds allotted by the Foreign Oper-
ations Administration.

The Spanish Government in 1954 sent out invitations to bid for
14 diesel locomotives for the use of the Spanish National Railroad
System, the locomotives to be purchased with funds made available
by Foreign Operations Administration. After an examination of
the bids the Spanish Government made the award to Alco (Amer-
ican Locomotive Co.) for $3,035,970 or $216,855 per locomotive. Alco
had provided a working model of its locomotive which the Spanish
had tested for several months and found to be very satisfactory. The
Baldwin-Lima-Hamilton Corp.’s bid was $199,800 per locomotive, the
total bid being $238,770 less than Alco’s.

The a. reflects that the Spanish Government was legally
within its rights in selecting the Alco bid. Despite the difference
in price the Spanish Government found that the Alco locomotive
was best suited to Spain’s needs, was cheaper to operate and maintain,
and the earlier delivery date promised by Alco made for economies
whi ore than offset the difference in price. Furthermore, no addi-
tional to the United States Government is involved. Since Spain
is allotted a fixed amount of money for the year, the amount spent
for locomotives only decreases the amount available for other
expenditures.

AMERICAN Prisoners in Iron Curtain CounTRIES

The subcommittee has continued its study of American personnel,
both civilian and military, who are —- held prisoners in Commu-
nist-controlled countries. Extensive staff interviews have been con-
ducted with prisoners who had been released by Communist China.
In its appraisal of the situation the subcommittee held two executive
sessions with representatives of the Departments of State, Defense,
Navy, and the Air Force. At the first, on April 18, 1955, there was
discussion regarding the efforts being made by the executive agencies
and by the Secretary General of the U.N. Any further action by the
subcommittee was deferred pending the outcome of iations being
conducted by the Secreta neral with Communist China.

On June 29, 1955, another subcommittee conference was held with
representatives of the State nt and military services at
which the release from China of the four airmen and several civilians
since the April 18 session was discussed. In view of the conferences
being held in Geneva by the American and Chinese consuls and the
meeting of the Big Four powers at the summit in Geneva, it was felt

—254—

PLAINTIFF'S EXHIBIT 63 (Continued) :

.

ANNUAL REPORT 39

that open hearings by the subcommittee would not be propritious and
apparently would not assist or contribute in the release of the Amer-
ican prisoners. Since that date 11 military and 29 civilians have been
released from Communist China.

The subcommittee continues its active interest in this matter and
with the rest of the world awaits China’s release of at least 13 addi-
tional Americans as well as the other foreign nationals from
imprisonment. ® %

Marrers Rererrep To THE DEPARTMENT OF JUSTICE

During the course of various public hearings several matters devel-
oped which were referred to the Justice Department for possible
prosecution.

In the case of Irving Peress the testimony of Brig. Gen. Ralph W.
Zwicker, former commanding officer at Camp‘ Kilmer, N. J., was in
conflict with that of C. George Anastos and Mary Morrill, former sub-
committee staff members. On April 12, 1954, all testimony and docu-
ments;in connection therewith were forwarded to the Department of
Justice for study as to whether there appeared to be a violation of the
perjury statute. On November 23, 1955, the Department advised that
a thorough investigation had been conducted and the results were
being studied in the Criminal Division. The letter stated the sub-
committee would be informed of the determination ‘made.

On May 26, 1955, a transcript of the public hearings on the inves-
tigation involving the FOA grain-storage project in Pakistan was
referred to the Department of Justice. An opinion was requested for
possible prosecution of Robert H. Pinner, an FOA consulting engineer,
and various individuals of the Agricultural Construction Co. On
October 10, 1955, Justice advised that since there was a possible viola-
tion of perjury statutes by Robert H. Pinner, the matter was being
forwarded to the United States attorney for the District of Columbia
for his consideration as to criminal prosecution.

All of the hearings, executive — in the textile procurement
in the military services, which \includes testimony of Harry Lev,
Marvin Rubin, Mrs. Mella Hort, David Pollack, Julius Goldman
Joseph G. Porreca, Capt. Raymond Wool, Jerome Schlesinger, and
Ferdinand Tartaglia, were furnished to the Department of Justice for
various violations of law. The Department is studying such testi-
mony with a view to violations of the bribery and perjury statutes.

The testimony of one witness who appeared in executive session in
connection with Communist infiltration in defense plants was referred
to the Department of Justice on May 2, 1955, for an opinion as to
violation of the perjury statute.

Diantha Hoag, a former employee of the Westinghouse Electric
Corp., was cited for contempt by the Senate on February 4, 1955. She
was thereafter indicted by a grand jury in the District of Columbia
on June 21, 1955, and her trial is pending. In her testimony before
this subcommittee she had initially denied she was, had been, or would
engage in espionage and sabotage. Later, in response to questions re-
lating to possible espionage, she invoked the first and fifth amendments.

«*

—255—

PLAINTIFF’S EXHIBIT 63 (Continued)

40 ' ANNUAL REPORT

~

Current Work

A number of investigations are being made by the staff at the present
time. These, of course, do not include the numerous prelimindry
inquiries.

COMMUNIST INFILTRATION OF SCHOOLS OBTAINING BENEFITS UNDER

VETERANS’ EDUCATIONAL AND REHABILITATION PROGRAM

The subcommittee has been in receipt of allegations that certain
schools owned or operated by members of the Communist Party have
been approved to train veterans of World War ITI and the Korean war
under various laws providing educational and rehabilitation benefits.
It has been reported further that veterans have been and are presently
attending such schools, their tuition being paid by the Veterans’
Administration.

The staff is presently engaged in a detailed inquiry to determine
whether schools actually owned or controlled by Communists have
in fact been so approved, whether the Veterans’ Administration is ex-

nding funds for the tuition of veterans attending these schools, and
if so, the reasons therefor.

EAST-WEST TRADE

In 1954 extensive changes were made in the export controls on the
sale and delivery of strategic materials from the free nations of the
world to the Soviet-dominated areas.

The changes in United States security export controls were cvordi-
nated and ran concurrently with a similar review of international
East-West export controls. This downgrading of strategic items has
been highly classified and cloaked with secrecy, particularly as to the
aspects relating to internationalscontrols. However, it has been re-

rted that controls over certain highly strategic items have been un-

uly relaxed and that the officials authorizing decontrol have disre-
garded technical and intelligence reports strongly opposing such
decontrol. ;

The subcommittee also received reports of illicit traffic in strategic
materials, particularly copper, and of constant efforts being made by
Soviet purchasing agencies to obtain such products. The subcom-
mittee is continuing its study of these problems in preparation for
possible hearings this coming year.

GSA PURCHASES OF MEXICAN MANGANESE

Information was furnished the subcommittee that an American-
owned mine in Chihuahua, Mexico, was under contract to furnish
manganese to the Emergency Procurement Service of General Serv-
ices Administration and was operating on money loaned by the Ex-
port-Import Bank. Through an error there was an overpayment to
the mining company, and when the mine was unable to refund the
overpayment, EPS then canceled the contract.

An investigation is being made to determine if both the Export-
Import Bank and the EPS acted in the best interests of the United
States Government and whether there was any wrongdoing on the
part of the mining company involved.

—256—

PLAINTIFF’S EXHIBIT 63 (Continued)

ANNUAL REPORT 41

ARMED FORCES PROCUREMENT

The investigation of procurement of textile and apparel equipment
for the armed services has led to information regarding improper
practices in other types of procurement. The subcommittee is pres-
ently conducting inquiry into irregularities in this field.

The members of the Committee on Government Operations, except
those who are members of the Senate Permanent Subcommittee on
rem did not sit in on the hearings and executive sessions on
which the above report was prepared. Under these circumstances,
they have taken no part in the preparation and submission of the re-
port, except to authorize its filing as a report made by the subcom-
mittee.

e)

UTE wag Pee io

MO 18 (TC WASH, DC)

ovate

"MV, 2léor9 f

"SPEC. INST.

fief x

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—— Te
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cop Ws f orate
FO-2 FH

ed Agee Sa a i .

ecm J

a
see Game

Re BE Pa =A
PME 5 SSF
= ee

Ce? Oy +A

—257—

PLAINTIFF'S EXHIBIT 64

+8 @er
.

“wren ght

MD 10 (1S WASH, DC)

SPEC. INST
tac
vo —
7 fo 2 gree ee
ae ae eae ALP oe

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vd | ct Pee
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—

CrP CL SA

—258—

oe PLAINTIFF’S EXHIBIT 64 (Continued)

“io P ’ 55 te ea ee s - . - ave “059 =

|_(TC) WASHINGTON, D.C. 1 rigs: " (TCP)WASHINGTON, D.C.1

—t+éhefere § oe tts a PT AE
wh rrr seco. ingtintZ tl S¢— ol a

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ML. J) 2617

SPEC. INST.

rm 7 Tac
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—259—

PLAINTIFF’S EXHIBIT 64 (Continued)

“wy 1055 ear

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“ (TC) WASHINGTON, D.C. 14 —
a [44 Yer

wR2638 ateh

FROM

__(TC) WASHINGTON, D.C. 1)

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—260—
PLAINTIFF’S EXHIBIT 64 (Continued)
7 Wn 1 Boo. |
até Wn 145 ee

MOD 18 (TC WASH, DC)
“aL « 216019

SP cx Sees _MD 18 (TC WASH, OC)
Lal 2or9

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SPCC. INST. ae eo

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—261—

PLAINTIFF’S EXHIBIT 64 Contiaanes

i an eS «ie i De eer : e © we
ew £0 1953 1 de ee ees Bay fH W. MAY 3 - -55| “ZaTr- os oer
™ (te) =) WASHINGTON, oc1°" Sas 3 =

| | (Te) WASHINGTON, D.c.1"
tse VIYf t De cr ca rome

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uh WAM OL geet?
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count ~~ “2 (ty-
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400 Geac

OF ny, Picea ’ Cwanes
/ /. \WY 9 = ‘. ty °
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| = C¥f
Bui PTE ele a

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SPEC. inst.

—262—

PLAINTIFF'S EXHIBIT 64 (Continued)

wn = AT ys 35”

|

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SHUR NUN AP

ed a I)

— 263—

PLAINTIFF'S EXHIBIT 64 (Continued)

co sae oa ere
rat wosrend emon Yensonare oo, : @u western wrton Tefensen C2.
say 25 MAY 25
TELEG. OFFC. & DATE OF MESSAGE £ TELEG. OFFC. & DATE OF mregacE
ot 2@6019 Ping OL! 2=6019
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PLAINTIFF’S EXHIBIT 64 (Continued)

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—265—

PLAINTIFF’S EXHIBIT 64 (Continued)

_nrst rt 2355 i aa ‘. ! ocre + be ~- 55 ve ae

. : | win is (te wash oc)" 7 ~ MD 18-(TC WASH, Oty °”

| Pu lease | ce ey
4 spec. inst. _ sal ia

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7

wn APR 1455 FY LE

‘CHICAGO,

—272—

PLAINTIFF’S EXHIBIT 65 (Continued)

cr) 20237 2ea7
=

: on So
MAY17-55,:~+

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ror~4__. GLa

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—273—

PLAINTIFF'S EXHIBIT 65 (Continuec)

a,

oe ae
CHICAGO, ~ hb
ANS |eces oeeee
Seu!
21 WASH
22 WASH _
— :
2y CHICAGO 6 50
LOS ANG 3 50
JERSEYVL 25
WASH 1 yO
WASH 1 0
2 WASH 80
25 WASH 80
%
4t C Y ] q ”
(¢

% f+ BY OPERATOR, AND TELEGRAMS L
jo has ys wef
ee 7 OR 5 5600 rot ”
JUN | A
13. ST LouIS 5 40 OCT
TOLEDO 1 80 23 CY TO JERSEYVL 72
ATLANTA u 50 es CY TO WASH "
CINCINNATI 25 eu CY TO PHILA 2 6
ror 1 88
BALTO 1 ig MESSAGE UNIT PERSON TO
BUFFALO 1 PEISON AND COLLECTCALLS
are" Bae
Tatton 2 70 a FROM FLORAL PK 5
CARROLLTON 3 60
CHICAGO 2 30 6 FROM EDGEWD | 35
. 1 90 G FROMGLEN COVE 35
e 2 70 11 FROM WESTMORE 35°
a 2 90 1y FROMFLORAL PK 5
K pas 19 FROM PIONEER 35
EATONTN 55 20") FROM PIONEER 30
K 15
RUTIERFD a4 ocr MOBILE CONNECT 10N
ALO 2 5 COLUMBUS
14 «FROM EEVERLY 2 175
FROM CLEVELD ss |_
— FROM 1 90 2 fe nno
10% V.8. TAR 10% v.s. Tax oP a4 yy)
TOTAL CA
———— eee a asi a ) a ch O
Statement New Yora Tricewone Company

New Yoru Tecesnone Company

Statement
A TOLL CALLS GoM PLETED

BY OPERATOR, AND TELEGRAMS
ORS 5€90
‘7?
$699 i Nt?
oCcT
17 WASH TO CRGL 85
16 CLEVELD TO TOLEDO 1 25
25 WASH TO CY 90
WASH TO SCARSO*LE 1 35
25 CINCINNATI! TO “MT VERNON 2 39
W4SH TO CY $0
76 CY TO LOS ANG 1§ 10
WASH TO SCARSDALE 1 20
WASH TO CY 89
WASH TO LOS ANG 300.
27 WASH T> SC/RSNALI 110
WASH TO JERSEYVL 6 30
WASH TO CY 1 20
CY TO JERSEYVL 1 30
CY TO CHICAGO 3 30
WASH TO CY 80
28 DAYTON TO MT VERNON 3 75
ARLINGTN TO CY BO -
29 cY TO JERSTYVL 2°70
TORR INGTepO SCARSDALE 40
40% U.S. TAZ se
carte ~~ rN TO BILL '

— 280—

PLAINTIFF’S EXHIBIT 67 (Continued)

. ’
Statemen New Yoru TEL_ernone Company ’ a Me
A «6TOLL CALLS COMPLETED | Leura 7s peas
BY OPERATOR, AND TELEGRAMS 4 Eee ae, 4
Apgeshin BL ? 279 m
1 PHOEN 1X _* 4 bd =&
t “vig
6 oo °
WASH 1 10 rere +
‘ 1 70 pegs 8 4 5 5
" 1 65 at i ea an
CITY TLGRM 3 03 ro
n 2 85
FROM CONCORD 3 15 i «2
FROM WASH 3 90 A 8352
9 FROM BRADLEY 5 40 ; Pais
i 1 10 © 2 Os
2 6B SHR 40 ne
10% U.S. TAX =?
ee Oe
TOTAL CARRIED TO BILL
&-14681-& 6-86 -

—281—

PLAINTIFF'S EXHIBIT 68

—282—

PLAINTIFF'S EXHIBIT 69

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— 285—

PLAINTIFF'S EXHIBIT 69 (Continued)

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Of °SS J 39

LE °SS TISI° iI

¢ °x3 TsTt20zZ
Of-s Transvortation Conpany -

ling Perlman has talked with ‘ir. Fawcett regarding the
statag o” the transfer situstion. After a thorouch sifting
of all comvarnies big¢.enouch and capable of doing the transfer
jov at Thica:o, the cornuittee has deternired only two are of
sufficient importance te he considered,

1 - Incunbent, Parmelee Trensportatinn Company, and
3 t v

2 - Keeshin Hotor Company, Chicayo.

>

Fundamentally, the provosnls of these two companies are
the same, for exatple, each desires five year contract with
tic earricrs und each pro-osal outl'nes new limousine equip-
ment - in the case of Keeshin he provoses radio equipped, air-
conditioned limousines for the transfer of passenrers but, as
stated above, each provosal is fundamentally the same and
covers the transfer of passengers between stations, Chicaco,
ani the transfer of checked bagzaree

The necsiin proposal outlines coupon rates as follows:

°1,.20 per coupon for the rirst year
51.22 per coupon for the second year
‘1.23 per coupon for the third year, and

coamencing with the fourth year, the contract would contain an
esc ilator clause on tie }asis of 1g increase in the coupon rate
For every 5¢ an hour ‘ncrease in warese

“he Parmelce pronosition »nrovides for “1,20 per coupon for
tac first yeare Comiencing with the second year the coupon
rute would be dependent upon an escalator clause providing for
1’ increase per coupon for each 3¢ an hour increase in wages,
vlus lg increase per coupon for each 1% decrease in the number
of passen ers transferred between stations - if the number of
passen ors ‘neveased between stations the coupon rate would like-
wiso he decreased 1g ver couvone The base period on which the
increase or decrease of coupons would be fri, ured would be the

neriod Jul: 1, 195h to June 30, 1955.6
“y
NY 308

—296—

PLAINTIFF'S EXHIBIT 76 (Continued)

NEW YORK CENTRAL SYSTEM

In 195) the New York Central paid the Parmelee Company
$345,160. I do not have the total payment to Parmelee in 195);,
but I am showing next the total payments made to Parielee by
the Terminal Lines in the years !ndicated and the amount of
money that the New York Central paid Parmelee in those years:

Year Total Pe Ae
T9S1 wig > > 5
1952 1,621,508 366,559
1953 1,460, 86 30,632

In 1950 the adult coupon rate was 85¢ and was ine-
creased to %1.00.

In 1952 coupon rate was increased to °1,.05
January 1, 195) - 31.123

April 1, 1954 - “1.20, and

The present rate since July 1, 1954 is 1.22

When Mr. Perlman discussed the matter with “dr, “aucett he
asked if I could keep the case onen and for decision until he
would have an opportunity to analyze it = the Parmelee Trans po-ta-
tion Company has now concluded that they must have an answer on
May 6 inasmch as their labor contract exnires on vun2 30 they
‘state they mst start negotiations immediately (The Keeshin pro-
posal states that his labor contracts have beeh nade for tie

next three years) increase of 05¢ an hour awar-o4 to Arivers — Parmalee ocronoses a

| ~Ol¢ per coupon increase for ench ,07¢ ner hour increase in 4rivers
‘wages with maximum cost per couron not to cee? “1,25,

hach of the two comoanies 4esires u five yeir contract, each >ronoses
to provi’e new limousine equiprent, each »ronoses full covernye of
tronsfer requirenents of prasensers nan@ cliecke4 baggage between stations
in Chie: so,

In 1954, the lew York Central pai@ the Darnolee Commany ~345,1603 the
totals naiA sarmalee by the ‘er: innl Iines, Chiengo an* the amounts paiA
by the ivew York Central as its proportion ftr the three years prior to
1954 follows is

} é
Plaintiffs gees ? = %
) iden. o / / ¥ fed i] ‘ f
Eachibit ibit {_y isen ¢ t

in the Dist Codrt ofthe United States. Btrore 2G u
Northern Distrigf of tilinois, Eastern Division MINER, J,
No.

ities |
Roy E. Fuller - Official Court Reporter

Omernv?

—298—

PLAINTIFF’S EXHIBIT 77 (Continued)

MEMORANDUM = Continued = Page = 2 = Way 20, 195

TOTAL OE CE
ost $1,609,15 ms SEL _

1952 1,621,608 366,559
1953 1,460,846 340,622

In opening this contract to competitive bi+4ing it is the feeling of
the Chicego Terminal Lines that ea much better eal will result than
voul’ otherwise be possible,

F, ll, Bais

PLAINTIFF'S EXHIBIT 78

NEw YORK CENTRAL SYSTEM.

New York, May 26, 195
Aue 1

Memorandum for Mr. E. C. Nickerson:

Referring to the Chicapo transfer situution and the
negotiations being progressed in connection therewith:-

I quote letter from Mr. Bone, dated May 7th:

"I am genuinely impressed with the Keeshin proposition,
and particularly his attitude.

I feel, were it not for the proposal submitted by Ir.
Keeshin, that the Parmelee Company would be asking
for a rete per coupon several cents hirher than we

are today paying.

I feel that the Parmelee Company could have been more
alert in finding means to reduce their expenses, en-
abling a lower coupon rate, instead of holding out for
different plans which would, in effect, guarantee
Parmelee an increased rate when railroad traffic is
declining.

The Keeshin proposal to replace equipment every thirty
months is quite necessur,, «11 it was eiven in a clear
cut manner = and the equipment, belo: radio dispatched
and air-conditioned, is to the advantare of the carriers:

I am confident that Mr. Keeshin can do the job better
and I, therefore, recomrend that the Keeshin Company be
given the contract on the basis of hit proposition."

I apree with Mr. Bone's conclisions and recomend
that we be given authority to proceed acorlinely. ‘¢ must be sure,
of course, that an enforceable contract is negotiated with Keeshin
and that same will guarantec continuity of service by Keeshin, or
his successors, in the event the Keeshin Company decides to dispose
of the business at sone later date. The matter of settlements
should also be plainly stated, the Railronds iavolwe! in the con-
tract settling on the basis of coupons presented and on which sere
vice has been performd.

Please advise,

FP. ie Tages ee
/ 4 fy N (S7,
f Se. Waele ess, ay

— 300—

PLAINTIFF’S EXHIBIT 79

G6 Se ce
NEw YORK CENTRAL SYSTEM
New York, May 315 1955

Mm. & WV. Bone:

Referring to the Chicago transfer situation am’ negotiations
being progresse* in connection therevith.

You have copy of ay semoren‘us to Mr, Bickerson “ete* May 26th,
recommen‘ing that the Keeshin Company te given the contrect for the trens-
fer vork at Chicego,

Mr, Nickerson has approve this recommen‘ation en’ the aatter
may therefore be progresse” accor4ingly.

The provisions outline’ in the lest paragraph of ay letter of the

26th, are necessary an* the contract, if finally ewarse* Keeshin, shoul-
be clear with respect to each provision,

Mop
NY CUD

—301—
PLAINTIFF'S EXHIBIT 81

Supplement to CRI GPRR. Co. Secretary s No

-
Ps
Parneles Transportation feyuy /
300 ile Jeep laines ‘te
thicare, Tie wen
a
Tetlew Ce& Corpary praratitts pene - I
a? W se Indiana Ave. Exit — ated suates, nn i,
|) Chiesgo, Ni. ithe | fe eet eastern Dension
Worthern a ;
Chee?er Taxi [Falter - ottictat Come '

Peferring to Letter forr cf ‘precrent, dated "eoebrr ¥), 1942,
between The New York Genten] Ruilrond Oo puy, The Chicyr, Peck I-lend
and Pasifie & ‘lwuy Cawaery, Perales Transvortation Corperg, Yellew Cab

end Thac' ar iaxt Gorp ey, providing for or-retion of ravales bee
and Yellow and Checter ests in the so-ealled "fari-fourt® et Lealle Strest
‘tation, Giea,o, Tllinsiss

Th Vine with the recent decision of Giiearo Ter:inel Linre te
terrinate the servicer of the Parreles Trane ertation Corpany, ploa-e eca-
siter this mtifiention es formally earesiine the above Letter Fors of
Agrecarat date! Ussarber BD, 1942, effeetive itidnisht, “erterder BD, 1955,

those MOCyY Tab ano ker © Cyc

wl a wala se we LF et A
Secretary Vibe President

4

ag i ae

—302—

PLAINTIFF’S EXHIBIT 82

—303—

PLAINTIFF’S EXHIBIT 82 (Continued)

—304—

PLAINTIFF’S EXHIBIT 82 (Continued)

Ah Kr boom fir |
at 9120 4 Wer drgn &
“a Me Vo ty wre Upp.
Taide Pied

‘ ha uy 1? Wynd iia cbeee

Pk waded Ub, Ute oi

—305—

PLAINTIFF'S EXHIBIT 82 (Continued)

hy 9 v08 LS np

7H td ll

hewn tnchad
5h ir

ie | & "E '@v™

he

—306—

PLAINTIFF’S EXHIBIT 8&2 (Continued)

“Wha Whitty:

ed bat, :
he Un Slo -
1. Tandon

Whe Wr Lr = Wilt romne Lond

We Pa watd Rye Wr = yi

—

Ht Sena & bon - hte

—307—

PLAINTIFF’S EXHIBIT 82 (Continued)

Schirnta aa. lev SD Ae ,
Irvdd fren ih Pry Git a

feat |

ar

PLAINTIFF’S EXHIBIT 82 (Continued)

—309—

PLAINTIFF’S EXHIBIT 82 (Continued)

GT, Wd pre (Pray
te

| , = 5 aN, gill aneeiall
: Sidhe Ne ris ky uh. ath

- rah tmntk - 4O Tam ¥- eg,

b0 Miwa _fo Ina Goh
‘ a ae wee ven soa

L — 209 —Tigyty Wor oy

a

} ad Somme. paw ue
. Hj
) pf esas taal We

—310—

PLAINTIFF’S EXHIBIT 82 (Continued)
7
ls 3

—311—

PLAINTIFF’S EXHIBIT 82 (Continued)

“Nahar

Amul Tam Syn

? Ph Shy: Bt colsnd

me Ys Sarr '

a
(nay i
| Ee A

45 dem
; Wy Birhys 30 ddl pln ce];
AS x7 Meine |
die NY Se
ho My With. tho

—312—

PLAINTIFF’S EXHIBIT 82 (Continued)

Na kz :
Rivwule Dy
Phy 4 eupe SO¢
ac dept nt
lie T
_
———— eh
y
3 . (
Di Seb Cn ne 92% Sp

—313—

PLAINTIFF'S EXHIBIT 82 (Continued)

—314—

PLAINTIFF’S EXHIBIT 82 (Continued)

rn

a ee:

wit Ain - talc

Q- bo Gwellatr

Unwr Ur WJ Kop

es 2 SESE eee

Binge tin BF rs

oma * z (ll Pam | iste

Vy. ove WNW Siyipg Ow
ne ke UA em Wo hw

Vito J Aarne Ws

— =315—

PLAINTIFF’S EXHIBIT 82 (Continued)

Idvidh
Sd atch abt
ee
Din as 5a
é ee 7 |
Ni tet

—316—
PLAINTIFF’S EXHIBIT 82 (Continued)

——. 4

; i RE
Sul Vin ty heat tp iJ

ay <>~-rnoremmnneenmennasnans

te On pile Misrepaoels,

np. if - Y Inert Le

Wt + . | FR Craw.

Li ¢ Th, Hf Crap,

fee?

7
wh Avis Rien, i." = t

UY Ws 4 Nk

en + ee

Mh bn bf. Vy b hime Hans |

lelry - Nyi37

—317—

PLAINTIFF’S EXHIBIT 83
—

a de

--

F ——
ILE F.R. M. (27

Mr, Baird -

Mr. Yone called to aé@vise that Messrs. Comer and
Whittington will be on hand in Chicago re the Chicago

transfer situation on Thursday, May 19th.
I advised him you vould not be there. .,

adoceca #0) - if te!

—318—

PLAINTIFF'S EXHIBIT 84
NEW YORK CENTRAL SY¥8 TEM

Chicago, May 19, 1955

Mr. PF. H. Baird:

Today, the sub-committee of the Chicago Terminal Lines, conm-
posed of the following mombers ¥

C .E-Quackenbush, G.P.Ac,s C.& N.We, Chicago
8.F.G.Nelson, A.G.P.A., Bo& On, Chicago
J.L.Sloan, A.G.P.Ae, A.T.& S.F., Chicago
E.M.Holt, G.P.A., Pennsylvania, Chicago
R.P.Smart, A.G.P.A., I.Ce, Chicago

and the undersigned as Chairman

augmented by the following officials

E.B.Padrick, Chairman, Trans-Cont.-Western Passenger Ass'r
E.R.Comer, PrM, yo R ey Philadelphia

J.F Whittington, G.P. oM., B.& 0O., Baltimore

R.E.Coleman, P.T.M., B.& 0., Chicago

J.R.Brennan, P.T.M., C.& N.W., Chicago

met with Messrs. Keeshin and Markin and reviewed their proposals
in the Chicago transfer situation.

Mr, Keeshin conferred with the committee at 10:00 A.M. today
and reiterated his position to be on the following coupon rates:

2nd year - 1.22

3rd year - 1.23
and the fourth yearg on the basis of an escalator clause, being
an increase of per coupon for every 5¢ an hour drivers' wages
were increased.

Mr, Keeshin's pfoposal is on a five year basis through Decen-
ber 1961 and he assured the committee that he is prepared to pur-
chase 60 units of passenger equipment of the station on air-
conditioned (50 units of S-passenger capacity and 10 units
either 22 or capacity) plus 40 trailer trucks to handle checked
pe. po The equipment to be replaced under a 30 month replace-

Pp 7

The equipment which Mr. Keeshin proposes would have luggage
racks on the top of the station wagons for the handling of luggage
which passengers would carry with them in the transfer between
stations - this luggage rack would be constructed by unique design

: ee
ES ea Lie * S re

—319—
PLAINTIFF'S EXHIBIT 84 (Continued)

NEW YORK CENTRAL SYSTEM

Mr. F. H. Baird Page 2 May 19, 1955

providing for a sliding top which would protect, he says, the

luggage in the case of inclement weather. -
Mr, Keeshin also proposed to augment the present two trips

a day between Chicago stations for the handling of checked baggage

to four trips a day.

Mr. Keeshin did not care to forecase the coupon rate beginning
with the fourth year, inasmch as it is of some conjecture what
labor conditions would be at that time but he did not anticipate
the hourly rate of drivers to increase beyond 10¢ an hour in the
fourth year or 10¢ an hour in the fifth year,

Mr. Keeshin stated that he could have passenger equipment
within 90 days to place in limousine service, and he had sufficient
equipment to handle the checked baggage - also Mr, Keeshin stated
that in the dase of an emergency he could make arrangements for
sufficient equipment tc commense the limdusine transfer almost
immediately.

Mr. Markin, Chairman of the Board of the Parmelee Transporte-
tion Company, conferred with the committee at 2:00 ofclock this
ob mma and reiterated a portion of his previous proposition, as

ows:

ist year - coupon rate to be $1.20, and, beginning with
the second year, an adjustment of the coupon rate of ig for each
increase or decrease of 3¢ per hour in wages of the driver employes
and contiming until the expiration of the contract, but the

coppon rate through December 1961 would not exceed $1.25.

Mr. Markin's proposition is on a five year contract, throtgh
December 1961, and he reiterated his prior proposition to replace
trucks for the handling of checked beggage and to replace the pre-
nent 85 limousines (20 12-passenger and 65 7-passenger) by the
purchase of thirty additional 12-passenger capacity limousines to
replace some of the seven-passenger limousines, Mr. Barkin stated
that this would require an expenditure of approximately $500,000
over a period up to eighteen months. Mr. Markin stated that he
did not consider air-conditioned equipment to be practical in the
limousine transfer, :

Mr. Markin's limousines would have space for the luggage
which passengers take with them in limousines in a compartment 7

es

—320—

PLAINTIFF’S EXHIBIT 84 (Continued)
NEW YORK CENTRAL SYSTEM

Mr, FP. H. Baird Pace 3 May 19, 1955

“

the body of the limousine accessible through the rear compartment,
from the outside.

Mr, Markin stated that he considers the two trips per day of
checked baggage between stations to be adequate, which position
is confirmed the Managers of our respective Baggage Rooms at
the different Chicago Terminals.

Briefing these two proposals, the Keeshin proposal could
(although a matter of conjecture) reach a rate of $1.27 a coupon
in the fifth andexpiring year of the contract, whereas the
Parmelee ig oy enter Company proposal provides a positive
ceiling of $1.25, through the fifth year of the contract - howev
it could well be that the Parmelee proposal would reach the maxi-
num of $1.25 in its second year (depending upon what Parmelee is
able to negotiate with its drivers) whereas the Keeshin proposal
(labor contract having been negotiated by Mr. Keeshin) provides

maximum of
$1.22 in the second year
1.23 in the third year.

The members of the sub-committee have designated Friday,
June 3, as the next date that the sub-committee will meet to
compile the sub-committee’s recommendation to the general com-
mittee composed of all Chicago lines, I trust that this date
(June 3) will be sufficient time for you to analyze these two
proposals and let me have the position of our company. I
should add that other members of the sub-committee are likewise
submitting the detail of today's conferences to their officers \
for a similar analysis end judgment.

S. W. Bone

/,
Copy Mr. D. A. Fawcett. _2

—321—

PLAINTIFF’S EXHIBIT 85

NEw Yori CENTRAL SYSTEM

Chicege, May 20, 1955

Mr. FP. H. Baird:

S->pic--rtirs ry lotter of May 19 in regard te the
Chiceso trancfer sitiunrtica = -_

At h:h9 this aftorrecn Mr. Morris Farkin telephened
we fren c-aseo ¢n4 statod that ke wanted te revise his

prepositicn in regard to the Chicage transfer situation
as fellows:

"Bese rate establictsd July 1, 1955 $1.20 end
y ce _ there shall be incronrs of lg for each 3¢ in
—— cost ef labor, ths ririzcum rates under é
4 fermila are as follews:

J 1, 19 120°”
eed 6 Eee
July 1. 1958 122 —

saly 1, 195) te the end of the
eontract, July 1960 - $1,.25t—

I understood frea lr. Martin thet he intends te ecn-
firm hie teler*cne ccnversatica by letter.

F “ie

Gepy Fr.D.A.Fe- 3%

4 >
La |

we

PLAINTIFF'S EXHIBIT 86

NEw YORK CENTRAL SYSTEM

ioggo, May 23, 1955

Mr, Je As Whited~
Assistant to the President
New York, Hew York

Dear Jack:

Pursuant to your request, I am attaching
hereto copy of my letter of May 20 addressed

to Mr. Baird, with a copy to Mr. Fawcett, re- oe
gerding the Chicago transfer situation.

rye

? Ya ae
(.? ot oat
goteth ve A — ca
Enelosuro | OM | inca ates TOE
te the District

rib, |
5 Owe wer
n District of Hiinots, rasiers Di
Norther
No.

-- —* Jj?
re

~ ania) Court Keportet ‘ ,
Roy E. Fuiler - CAlwisi Cour

—323—

PLAINTIFF’S EXHIBIT 86 (Continued)

NEW YORK CENTRAL SYSTEM

COPY

Chicago, May 20, 1955

Mr. F. H. Baird: ‘
Supplementing my letter of May 19 in regard to
the Chicago transfer situation -

At :hO this afternoon Mr, Morris Markin tele-
phoned me from Kalamazoo and stated that he wanted
to revise his proposition in regard to the Chicago
transfer situation as follows:

"Base rate established July 1, 1955 - $1.20 |
and there shall be increase of l¢ for each 3¢
in cost of labor, the maximum rates under
this formla are as follows:

July 1, 1955 $1.20
July 1, 1956 1.22
July 1, 1957 1.2
July l, 1956 1.2

July 1, 1959 to the end of the
contrect, July 1960 - $1.25"

I understand from Mr, Markin that he intends to
confirm his telephone conversation by letter,

S. W. Bone

Copy Mr. D. A. Fawcett

—324—

PLAINTIFF'S EXHIBIT 87

Chicago, May 23, 1955

Mr. T. Ce Norland!

I am returning papors bearing yours pene
oiled r-morantim recarding ues of O.T.A. buses
to trancfer groups betwecn torninals, Chicago,
when such froups hold pm rty tickots reading
to and fron Chicago -

I an now adviesd that the Parmolee
Tre sportation Company will handle such group
noverments at the rate of 50” per capita.

$.W.Bens

Ene losures

—325—

PLAINTIFF'S EXHIBIT 87a i
| Ty pees
«New YORK CENTRAL Sy tea
| es . \ P. T. M. cacAco
\ Ghieage, may 83, 1968
ma © {
mecres E. Ee Pierce a” \ a
Ze Ge E2=p v -

Tie use ef CTA t=s-7s te t-2-7fcr botvoen
stations in Chics-> sec-3 t2 to f--"icr at Birra this
estneé ie uerta Cit> 277103 ectes and 40 cy rescls
ia é:>Aicate ae £-—~NJ—q I-=-71cs Cc-—--y 3 Co £730
ef the troa-sic? ecsvicd e-1 ts & E-Bicrvs reccive eepies
ef transportatica asiiess, alce srevidirg bx-28,

Thaie entt->? E23 ro--stt4 te Mee Ecme end I new
have hie ictter ef Ezy £3 s--“irge

°Z em got=——irg gircze tecrirg your peosileds

S227 ec sairys co ef OcPole dake Ce
TSP C23 Bot 23 Corxirskae Onric2~39
C22 C77 Co t—3 Eo pasty thescts we=Airg
ve ¢-4 L572 Oct

*l em acy etvict’a t'30 “hs Pesce fro—l>cs a
tics OS "7 TUR ““Ne co! ac.
et €:9 £-29 ¢? Cog c-> ecritae

23 2-“*7> fe f-? > irto~—atiens ia frie wll

you gicete e7--"°7 in ei’ ¢-- mm ~58G8 E532908 C239 a2. 28
fF O2sc .
y" \N 6;
Rete Lh Bich batt '

—331—
PLAINTIFF’S EXHIBIT 92 (Continued)

TRUNK LIVE-CHITRAL PASSE::‘C2R CO}? ITTCE
WaSTEHN PASSENGER ASSOCIATION

(

June 3, 1955 >

CALL FOR 'SETIVNG,
CHI CACO TURSINAL Luics
Room 334, Unicn Station, Chicaro
WO DAY = JUIE 13, 1955
10330 Al! (DST)

2 -

pssrss
JJ Alns R E Colerain P G Nagle
2-% S Amis & RK Comer 2-T 5 Nerland
AN Ancerson H G Gillis 2-k @ Olilnan
} 2-R T Anderson 4 R Godley A G Oldenquist
F H Paird E £ Gordon E E Pierce
J A Barrett HE thy H Senrstacken
R F Berndt & N Holt Geo F Sherman
3-J L Bickley R E Jamieson R k Spangenberg
2 of coupons the full fares shall be computed
as one, the half fares s-7puted as om4-half and the
furloughees shall be conputed eighty-five one hundred
twentieths. (

5. Tnar the bacsage at all denots which is to be trans-
ferred by Parxwslee sh.ll be sorted ani -anifested by
the raflroads in triplicate.

6. That Par-slee will assi-e any increases in cost cf
later cetween July 1, 1°55 and June 3), 1956.

7. That Parmelee will acsine any loss of reven:
the reiistion tm the nacter of coupons rece
tesweea culy 1, 1955 ent Sune JO, 1755.

PLAINTIFF'S EXHIBIT 95 (Continued)

©)
Fromebeo Trenyprrlahva bompany
OP . heel F agp locwne YY
Chico ge 6..Il
Mere. Marken
«he
Mr. Padrick - continued
6. t the present coupon rate will be reduced fron
1.22 to $1.20 as of July 1, 1955.

9. That the charges for all other services will remain
the same.

If the foyégoing meets with your epproval, we will incorporate
i rmal contract.

Yours very truly,
PARMEL=S TRANSPORTATION COMPANY
Morris Markin, ”

‘Chairman of the Board

MM:1s

—340-¥

PLAINTIFF’S EXHIBIT 96

Lacrecler Sransportatirn Grmnpany NYC SYSTEM
300 eet Sogplavace Siroat MA. 23 1955
Chinage 6, Il PT. CBICAGO
May 20, 1955
Mr. 3. a. Bone

Passenger Traffic Manacer
New York Central system
LaSalle Street Station
Chicago, Iilinots

Dear Sid:

ys after reviewing the proposal presented yesterday, we
hereby suggest the foilowing anendrent:

The base rate shall be established at 01.20. There
shall be an increase cf l¢ for each J¢ increase in
the cost of labor. The maximum rates under this for-
mula are as follows:

For the year commencing July 1, 1955 = $1.20
For the year cormencirg July 1, 1956 - 1.22
For the year commencing July 1, 1957 - 1.23
For the year commencing July 1, 1958 - 1.2u
For the year ccrmer.cing July 1, 1959 - 1.25
For the year commencing July 1, 19@ = 1.25

To date, Parmelee has served the railroads for 102
years with no written contract, only the railrcads!
verdal commitment. ee are still ready to honor the
werdal cormitment cf the railrcads fcr the next five
years as per cur understanding, without a written
contract unless the railroads desire to have such a

tract.
—

Yours very truly,

| de oe a

’ M. Markin
Chairman of the Board

MM4chS

—341—

PLAINTIFF’S EXHIBIT 97

L. KEESHIN - 722 FIRBT NATIONAL BANK BUILOING - CHICAGE 3, ILLINOIS

December 16, 1954

Mre Se We Bone

Passenrer Traffic \anacer
Hew York Central System
LaSalle Street Station
Chicago &, Illincis ~

Dear Mr. Bones

I am attaching hereto our proposal
whieh eould be the basis for a contract to be
eztered into between ourselves and the various
Railroads involved.

If there are any ¢ estias concern
ing the subject matter of this proposal, please
eantact me and I shall be very happy to arrange
an interview at a time and places convenient to

Yous
Very truly yours,
Le Keeshia
Enelosures
P.Se Te are also attaching several pieces

ef advertising material of the type of equimmat
we plan to install in the vehicles we conterplate

purchas and using in the d
ing og passenger end baggage

—342—
PLAINTIFF’S EXHIBIT 97 (Continued)

PROPOSAL FOR TUE TRANSFERRING AND HANDLING

OF PASSRIGERS AND BAGGACE BETWEE! THE STATI GUS
LOCATED IN THE CHICAGO AREA AND OTHER LOCATIONS
AS ITECIZED.

1 am pleased to sutmit our proposal in regard to eontracting for
the transferring of passengers and bagrace through Chicago, fram the
following stations: in Chicago the eight passencer stations (siz so

ealled steam train terminals and two electric train terminals) as

followss

Dearborn Statia Dearborn and Polk
Grand Central Terminal Harrison and Welle
Union Canal and Adans
Central Michigan and Eleventh Place

‘ LaSalle LaSalle and Van Buren
Nortiwestern ~* Madison and Canal
Chicaro-North Bhore Adams and Wabash
Chicaro-South Bhore Randolph and Michigan

A careful analysis has buen made regarding the efficiency of
the specifie operations fram and to these stations in the handling

of passengers and bagrare, the transferring of corpses, soheduling
the delivery of bagrage and passengers to and from the differemt
stations, and the type of autamotive equipment that should and will
perform a satisfactory services

We have carefully gme into the roquirenents in the transferring
of passengers and baggage between the various statics as outlined, end have
aioe at the conclusion that we oan effect a faster transfer service of
baggages We also hope to improve on the handling of passengers by having
available the latest and most modern vehicles, with all of the latest
eafety features and designed to afford the passengers safer and more
eamfortable ridinge

It is our proposal te arrange to supply a sufficient amount ef 20 ft.
trailers equipped to operate satisfactorily te and from the stations as
qutlined, Thie operation eamoanly mown as the Shuttle System will
result in several transfers of baggage daily Setween stations, W believe
Chat with thie type of service, the resulte will bring about a easiderable
inprovenent in comparison to present day operations, Be ause of cur em

—343—

PLAINTIFF’S EXHIBIT 97 (Continued)

Page - 2e

templated Shuttle Service we are inclined to beliwe, after a careful
analysis, that the baggage can generally acoampany the passenger on the
train on which passenger ie scheduled to depart.

With regard to transporting passengers between sta ions we will
purchase a large fleet of modern, deluxe eight-passencer station wagons
equipped with hydromatic drive, plus a modern type of air emditiming
unite with temperature controle Each individual station wagon will be
equipped with an R.CeAe mobile radio wmite

It is our intention to set up at the LaSalle Street Statim, a
Central Dispatch System with the necessary radio equipamt and manpower
to facilitate our emtrol to best utilize the drivers and autanotive
power. later this radio ootrol micht be extended to our tractor
equipment also, if that should became necessary.

The passenger equipmant will have a large type heater to afford
the passengers the same kind of winter camfort as the air conditioning
wumite will provide for the summertime travelers. We feel that these
kind of innovations will prove to be an added attraction for the travelers
passing through the Chicago gateway. We also believe that the winter and
oummer comforts, and conveniences provided by the modern Deluxe railroad cars
of today should be duplicated, as much as possible, in the automotive vehicle
that is the connecting line between trains.

Our study of the movements of passengers convinces us that a radic
eontrol and dispatch will do mich to eliminate passenger irritation caused
by unnecessary delays because #e are sure that it will be able to dispateh
the equipment to whatevor station may have a peak load of passengers on
short notice at any intervale during the working daye We think it might
else prove of real value in the instances of late arrivals of trains, or
wader other atnormal and emergeney oamditians. A further advantage of
radio emtesi, in our opinion, might be that the vwehlole and driver will
be inetantly dispatched to transfer passengers with only a limited time to make

the necessary train connections.

— J44—
PLAINTIFF’S EXHIBIT 97 (Continued)

Page - 3a

It will be our plan to keep our automotive unite imrmeulate
With @ distinctive eolor scheme that will present a fine appearance,
and which will be a fine advertisenent for both the railroad and
ourselves. We plan to have each passenger vehicle washed as often [
ae ie necessary, and partiouler care will be maintained to have the |
equipment clean, safe and sanitary inside and out.

The equipment we plan to purelase will be fully equipped with edequat
luggage oarriors manufactured of chrome and nickel, ond with rolleback covers
to protect the barrare of the passengers arainst dust and bad weather.

Because we plan om having a floet of automotive units that will be
an Ad for both of us, we do not intend to keep the individual wite in our
possession for a period to exceed thirty months. To say this differently,
we undoubtedly will start replacing all automotive mite within two years,
with @ maximum of two and mehalf years. We foel that this kind of
automotive passenger equipment will afford the traveling public a greater
Gonvmience in their passage through the Chicago gateways We hope, in
this way, to attract mare fares for the railroads we will serve, and for
the service which we are offering to contract to provide,

Before leaving this subject it micht be well to call your attention
to the attached list of exhibits portaining to the various features of the
passenger transport service beween stations. As you will note, we have
most of the necessary statistios to have sane understanding of the fluctue
ation of the number of passemgeors during certain seasons, specific months,
and even the hourly differences and peaks during the individual dayse
Thies exhibit and the resultant investigution and studies have lead ue to
the conclusion that we oan estimate that one million three hundred thousand
passengers will use our transfor service. Ym have allowed a five percent
differential either up or down, in estimating the amamt of manpower and
equipment that will be necessary ‘to provide for the railroads the satisfactory.
and efficient service to handle the number of passengors and baggare as
outlined. Our projected estimates and figures are based on the period from
July 1, 1966 through Jume 30, 1956,

—345—

™

PLAINTIFF'S EXHIBIT 97 (Continued)

Pace - 4 16

A ot

a

~10
O-23

x27

474

5¥7

3,163

TOTAL

Pease

vehicles considered

each etetian.

peir of ecolwws represent the mruber ef
passengers vhich ve forevest wil) arrive at

oaek

pete will arrive,

we resresente the nuxber ef pessenrers we antic!
are best an Gabedales £1, Be. end @).

—356—

PLAINTIFF’S EXHIBIT 98
COPY

J. Le KEES'NIN
723 Sirst National onan Building
Chicago 3, Illinois

January 15, 1955

Moe Sidnes W. 30ne
Passen_er Truffic ianacer
sew Yori: Sertral issten
Lavalle Street Staticn
vhicrso 5, Illfnols

Deer ir. Sone:

This will have reference to ;our letter of Januacy ll,
19555 in connactior. wits tha Ciles. 9° Associuticn of Cort:arce
6rd Irncustry bullet‘!r covering, th» truck drivers! recent
three soar labor wase cortracte

The contracts {n question were concluded for a three
yaar period, settirg up for the first year, ten cents ar
nour wa:e increase, a rive cent an hour pension fund, arned
an ad baggage is called for.

b) Agents will be assigned to take care of passenger requirements, and
will be available at all statims sixteen hours a day.

c) Obdeervatio reveals the handling of baggare by your employes could
be reduced. The present method of handling the baggago mto your baggage hand
trucks, unloading and stowing on the floor in baggage rooms, and reloading creates
cagestion and contributes to the loos and damage potential. Our plan tends to
Ciminish the handling and labor involved, Your employes would merely drop the
baggage directly on the trailer, rather than go thru the several handling chores
served during our survey, end would neither stack nor load baggage @ trailers.

d) The loading and unloading facilities have been thoroly studied by
us at the depote. Our proposal involves activating a central consolidating
station in the event all statis cannot handle the same amount of trailers.

At this centrally located point, all baggace would be moved and sarted for ulti-~
mate delivery to respctive stations. i

e) Undor this plan thore would be no idle equipment. The 20’ trailers
Proposed to be used by us have been found econamical and mechanically sound. Oar
survey canvinces us that the use of these units would contribute without questim
to the reduction of handling, cmgeotion and confusion, and the transfers would
be completed every 9% uinutes of the day. My experience over the past 38 years
convinces me that the uso of trector trailer equipmont of the design and make we
Propose to use will prove more economical, and add to the overall efficiency of
the baggage transfer. : -

‘
_

7~

PLAINTIFF’S EXHIBIT 99 (Continued)

int TS dany a. Bora -2~ April 6, 1955

2), Gir aven labor reguletionn do not reatrict tho dziver porfarming
40 sericea. ‘he loeding and/or unloading sculd ent: il no additimal cost. to
Me esitre.ds, but rothar redree the o72:al] costs in aauporer presently in uso,

n) Thuso clans, if not acceptable to th? railroade way be accapted as
apheeia). waver, La places oF the prena:t 12' or 1)’ dbodios, we rould infinitsly
poofaer urboe ta. 20' tratler fos the beerave transfer which would bo acra flozible
ew ban: wise Levdlis Gpuca Maa ao stright truck nith a ly" body. Furthermora.
achover enwoa temter with » 20° trailer effor’s croater manourcrability than
@ deriyghl wack it: conescted compton arues and wlth the ¢rivoer unloading md/or
hewidng, the cuvings uheuld be obvious,

h) Ta, or pe EEA propesn), wa natild hava otuted in the event the
,allroed manegezunt Intarporsda ojactlen. to, or deuuied tho feasibility of the
trajllor pli willing! atove, w2 would Gliuinate it and substitute an operatim
siullar io whet you nor bave, ccconk in olace of » straight truck which hus
elthor a li?! @ Aut hedy. & eculd strcengly urge thu :se of 2 20' trailer for
the tawrfer Of bezago, anc our driver: newd be -sspousible fcr tha loading
ana unlovsding a3 it cwescn*ly being persoreod. Wa ascuve you that our many yoars
of sXrperieuce dictstue to ve that this sould o¢ in tha best interest of all cam-
carmad, Orr union Libor regulatiuags do not reatr ict tho drivers parforming this
Jyorvice .

i) The suyplemoital lcttar of Jenusry 15, 1956 wa «aritteon immediately
Prior tom luwring m my trip. { noto that I failed to outline that ry pr opcesed
rata vanviny frop $1 20 put couson fcr tio first yoav. ¥1.22 per coupon for the
Bécad yee, aad $1.23 por ccupm fcr tho thiad yoer, protects the railroad nanae3~
cent aga‘rai aor fucsker increases, and ‘mn vc rey would affect tha rate in the
event of ay declir 3 in passenger traffic. Our oscaletaur clauso applies on the
basis cy every 5 cunts au hovr increas: in .eges :crumncing with tho fourth
year, “he inev.atse rut? Lar coupen woud bo 1 cent, and of courso om any decrease
in vagos, bku @ une Paraula would apply cn a reduction, 1. ¢., 1 cent per coupa
fcr evory 5 cants 41 hays dec -c160,

Jj) To roiterela, eny decrease which migtt camfrait you in passangor
traffic, will 42 mo way affect our pro;ose’d rate, cr the efficiency of the sarv-
See. Tht ie a tliad guarantee for threes years, and wa submit my cconanical
Change in thi. Opora.ion would te ono fcr menagensnt to cope rith, end adjust
‘arcordiny, to thy di: ates of itn exjerienca and ebdlity.

The wvitor Ris beon ectively engaced in ths field of tranopertation
fer 39 years ant fuaie comp lets ]y «sonficunt that the mechanics and methods fro~
Posed to your acrociatior are sgund end workable, They typs of service wo would
render it bascd on 2 coodsrative effort to essist the railroad managazent with
_ their progean of acdornigtie aud officient oqvipmsnt ind services.

~

4

PLAINTIFF’S EXHIBIT 99 (Continued)
ur .Sidney K. Bane, -3- April 6, 1955

We submit that the present modern improvements by the railroads should te

carried furthor to afford a deluxe service to the pessengers using the "bridge

service® botzcen Chicago sctatims. The equipment to be used by us will be

radio-phone controlled, cir conditioncd during the suanor mcnths, and chauffeured

by specialisto in their field. It is felt that the accanpanying mblicity tell-

ing the public of the improved comfort at their disposal when transferring at

the Chicago gateway, will in saze measure prove helpful in eliminating further

decrease Of passengor traffic in this rogim, and prove cmsistent with the

ee. ' endeavors to improve their cervice wherever possible in the public
TeSve

If there are other items that are not proporly clarified, IT would

appreciate an opportunity to moet with your camittco to discuss ol] matters
involved in this proposal.

Very truly yours,

/e/ 3. L. Koeshin
/t/ 3. Le Keeshin

JEKsR

—360—
PLAINTIFF’S EXHIBIT 100

WESTERN Ps.cSZNCPR ASSOCLATION
Room 436 Usnn & ation
916 Went Jachro: Boulevird

B BS. Parez, CHIC.ACD ¢, OI het D Bewareas,
: Charme 2 Secvetery

" !
ese, artis

Septexber 27, 1955
. :

CGITRACT WITH RAILOW THIOFER SERVICE, LL., TO
FEST OM TRASTCR SERVICE Li Tis CITY © ciIcico

-cesTss

JJ Alzs J 2 Brenma EM Holt AG Oldemuist
RS Acts Ic Bruce R = Janieson EE Ptlerce

A 7% Andersca & E Colexca G G Kottenstette H Sergstacken
R 7 Andersoz ZR Corer T° TeSucur Geo F Sherman
FP E Paird v 2 Godles AA leyer R R Spangenberg
JA Starrett E = Gordon ? G Tlegle R E Towns

R ? Serndt B J Grenroc TE terlond R B Veaver

J L Bickley EE kay RW Ohloan J F Whittington
S W Bone R G Wood
Gentlemen:

Tuere are attecied two copies of tie final contract covering transfer service
in tie city af Chicago by Railroad Transfer Service, Inc., effective October l,

1955.

Attention is called to Appentix A, attacied thereto, witch shows the consist
Of tue terminal area from witch baggage pick-up and delivery sérvice will be per-
forned by Railroad Transfer Service, Inc. a

Yours truly,

. RB PURIK =f 15 1959

Copy to Messrs:

C P Fisher Pialntifts } i) Defendants den: PFT Fi ay 9
co 2 Uelan sxhibit Exhibit nets LION

C X Serazer ' __“wthe District Court of the United States, Veerog:

F J “asso Northern District of tilinois, Eastern Division MiNcn, J. te
A J Vintler ae.

Attacirent (2 espies)

—361—
PLAINTIFF’S EXHIBIT 100 (Continued)

THIS AGEMENT, made as of the first day of October, 1955, by and between
the following railroads (horoinaNor referred to as "Torminal Linos®)3;

The Atchison, Topeka and Santa Fe Railway Company

The Baltimore and Ohio Railroad Company

The Chesapeake and Ohio Railway Company

Chicago & Eastorn Illinois Railroad Company

Chicago and North Western Railway Company

Chicapo, Burlineton & Quincy Railroad Company

Chicarzo Great Western Railway Company

Chicago, Indianapolis and Louisville Railway Company

Chicano, Milwaukee, St. Paul and Pacific Railroad Company

Chicago North Shore and Milwaukee Railway

Chicago, Rock Island and Pacific Raiircad Company

Chicago South Shore and South Bend Railroad

Erie Railroad Company

Grand Trunk Western Railroad Company

* Qulf, Mcoile and Ohio Railroad Company

Illinois Central Railroad Company

Minneapolis, St. Paul & Sault Ste. Marie Railroad Company

The New York Central Railroad Company

Tho New York, Chicaro and St. Louis Railroad Company

The Pennsyivania Railroad Company

Wabash Railroad Company
and the following named corporations (horeinafter raferred tc as "Depot Corpanies®)
which are owners of certain railroad terminal facilitios in Chicago:

The Laltimore and Ohio Chicago Terminal Railroad Company

Chicaro anc Western indiana Rat lroad Company

Chicago Union Station Company
by thoir duly appointed Aront, Mr. E, B, Padrick, with offices in Room 436 Union
Station, 516 West Jackson Boulevard, Chicayo 6, Illinois, Pertics of the First
Part, and RATIZOAD TRANSHrH Shevick, .NC, (horeinafter roferred to as "Tranafer"),
@ Uelawaro corporation, with its prinedpal offico at OO Voct Kinzte Street,

Chicaro 10, Jllinoin, Party of the Second Part,

bee

—362—

PLAINTIFF’S EXHIBIT 100 (Continued)

The twenty-one (21) railroads listed above (hereinafter referred to as
"Terminal Lines") have filed tariffe for through passenger service (hereinafter
referred to e# "through service") fron points outside to points beyond Chicago on
or reached via the incoming and outgoing participating Terminal Lines and stean-
ship lines, and for the delivery of baggage to or fron any terminal station, and
any Point within the area described in Appendix A attached hereto (hereinafter
referred to as the “terminal area"), The terminal station of each of the
Terminal Linss is located in some one (1) of eight (8) terminal ratlrved stations
located in the downtown area of Chicago (hereinafter referred to as "terminal
tion"), in which downtown area are located also the steamer docks, Three (3)
of .e terminal stations are used by one (1) railroad; fiws (5) other terminal
stations have from two (2) to four (4) railroads each; and one (1) terminal
gtation ep A (6) railroads, The relative location of the eight (8) terminal
stations and the steamer docks makes the use of motor vehicle transportation
desirable fcr passenger and baggage transfer between terminal stations whenever
the railroads involved are not located in the same terminal station, and between
the terminal etaticns and the steamer docks.

Under appticable tariffs, transportation for through service includes any
required pone ana oaggage transfer from the terminal station in Chicago of
the incoming line (hereinafter referred to as “incoming station") to the terminal
atatien in Chicago of the outgoing line (hereinafter referred to as *outgoing
station") and from the incoming station to the steamer dock of the outgoing
steamer (horeinafter referred to as "outgoing dock") and from the steamer dock
of the incoming steamer (hereinafter referred to as *incoming dock*) to the
Outgoing station, and is applicable only for the Terminal Lines and the steamship
lines which by separate agreement adopt the terms of this Agreement applicable
to thea,

The Terminal Lines have found it desirable to provide a transfer service
between terminal stations in Chicago, and between said stations and steamer docks,
Transfer has been organited for the purpose of entering into thie

Agreement. Transfer is ready, willing and able to perform all the required
passenger and barrage transfer services specified in this Apreement, all intended

to rolieve the passonrer of the responsibility for caring for tie required

o2e

er 7
— 363~—

PLAINTIFF’S EXHIBIT 100 (Continued)
Passonrer and barracge transfer in Chicago, and to provide for his passenger
transfer, within tho limited time available thorefor, motor vehicle transportation,
with the safety, convenience and comfort generally a-capted as an incident of
passenger automobile transportation normally available for that purpose; and

Transfer has offerod to ‘perform all euch corvices upon the terms and conditions

and for the charges and collections set forth in this Agreement,

NOW, THEREFORE, IT 18 MUTUALLY AGREED, as follows:

Passenger and Hand Bappars Transfer Service

1. Transfer acress to furnish and perform the following services (here-
inafter collectively referred to as “Passenger and Sbagrage Transfer Service");
Hand bareare, also referred to as Hbaggace, as used herein, means bapgage that is
moved with the passenrer, not unter check in dbageage car service.

(a) To transport in a passenger vehicle the passenger with,
or without, accompanying Hbagpare from incoming station or
incoming dock to outgoing station or outgoing dock shorm on
coupon, upon delivery of coupon for cancellation to Transfer's

agent at the incoming station or incoming dock, as the case may
A

(b) A passenrer traveling in a wheelchair, otherwise quali-
fied, abet’ teocns qualified for the Passenrer ana Hbageace
Transfer Service if his condition is such as to permit hin to
be transported in regular service,

(c) A passonyer who is traveling cn @ litter or stretcher
Shall nov be qualified for the Passenger and Hbagrare Transter

Service.

2. Transfer shall furnish and perform the Passenger and Hicggage Trans-e
fer Service in acccrdance with the following:
(&) A time schedule shall be established and maintained
seven (7) days per week. Such schedule shall be determined and
established in accordance with the incoming and outroing train r
schedules with the approval of ti Torminal Lines in conference
with Transfer, Transfer's arcnts shall be on duty at cach

terminal station during periods of transfer,

-j-

—364—
PLAINTIFF'S EXHIBIT 100 (Continued)

(b) Transfer shall determine the route or routes for this
sorvico, anc insofar es reasonably practical, such routes shall
permit ‘w most expeditious service between the terminal stations
involved,

(c) Tranefer shall furnish and operate a sufficient number
of suitable passenger vehicles to carry ovt this service. Al)
such vehicles shall have ample accommodations for conveniently
and safely carrying its passengers and their accompanying Hbargage.
Air conditioning shall be installed and maintained in these
passenger vehicles, These vehicles shall be maintained in *
clean, safe and sanitary condition, Passenger equipment used by
Transfer in any service under thie Agreement will be replaced by
Tranefer with new equipment within thirty (30) months after the
Commencemont of its use. If, in the opinion of Transfer, there
is a need for a different type of vehicle, and such vehicle is
acceptable to the Terminal Lines, the period of replacement of
Buch type of wehicle will be arranged through mutual agreement
betweer Transfer and the Terminal Lines, Equipment other than
passenger equipment used by Transfer in thie service will be
replaced by Transfer as necessary or desirable for high-crade
service,

(¢) Insofar as it may be reasonably practical, passenger and
his Hbargace shall be transported in the sane passenger vehicle,
having due regard for the safety, comfort end convenience of such
passenger and thn security of such Hbarrape. To the extent that
the passonger vehicle does not have adequate space available for
transporting the passenger and all his Mbappaze, his excess
Hbargage shal) be transported in another vehicle to his outgoing
station or outgoing dock so as to make possible the departure of
such passenger and all his Hbageare on the same scheduled outgoing
train or outgoing stearor,

(e) All of Transfer's personne) assignod to tius service
shall wear appropriate uniforms while on duty in this service,

(f) Transfer resorves tho rirht, and ehall hawo the sole
richt ar discretion:

she

—365—
PLAINTIFF'S EXHIBIT 100 (Continued)

(1) To transfer on route passenge: end/or his ‘ccompanying
Hbagpago from one to ancther of its vehicles, as operating conditions
may require;

(2) To refuse to accept for transport in such service any
prospective passenger for thie service otherwise qualified, and/or
to remove any passenger of through service » in any case where such
passenger is under the influence of intoxicating liquors or drugs
or is incapable of taking care of himself;

(3) To determine whether, and under what conditions, «
household pet as defined in applicadle tariffs, which under seid
tariffs may be brought into the passenger's train space, shall be
allowed to accompany him to his place in the passenger vehicle,
instead of being placed in the space therein allowed for Hbaggage
transport;

(4) To the extent determined by Transfer to be reasonably
practical and economically sound, to provide in co-operation with
the Terminal Lines involved, special passenger transfer equipment
and special services to accommodate passengers traveling in groups,
such as athletic teams, show troupes or other groups traveling under
special arrangements with such Terminal Lines, and to provide for
these groups adequate service and to meet the special conditions
surrounding the travel of these special groups; and in the absence
of agreement botween Transfer am! the Terminal Lines involved, such
Terminal Lines may make arranremente with othore for such special

passenger equipment ind special services,

3. Transfer shall be entitled to receive compensation computed in accard-
ance with the following schedule for sorvice romerod by it under the Passenger
and Mosgraru Tranufer Service, which stall be paid by the applicable outgoing
Terminal Line or outgoing steamship line, as the case may be:

SCHZDULE OF CHARCES
Coupons
(a) Transfor shall bo entitled to receive for each cancelled
coupon dolivored by it to tho Torminal Lino shan thoroon sorving

the outroing atation, and tho Torminal Lino handling tho passeonror

_

— 366—
PLAINTIFF'S EXHIBIT 100 (Continued)

from the outgoing station shal) be obligated to pay Transfer
therefor, a sum of money equal ito the applicable per-coupon rate
shom in the following echedule;
Military Personne) on Furlough
(1) Por each cancelled coupon shom thereon
to have been issued in connection with &@ valid ticket
covering a fare applicable to litary personnel on Applicable

furlough, as paccengers— ' Ber foneap fate

Wo change shall Se made in that rate except by mutual consent,
Adulte
(2) For each cancelled Coupon shown thereon to have bees

issued in connection with a valid ticket covering a valid fare
applicable to adult passengers (other than military personnel on
furlough), and showing on the face of such coupon that it was
cancelled at a date falling within the conseoutive twolve (12)
month period (hereinafter referred to as "year") indicated below,
following the commencement data of this service, the applicable
per-coupon rate shall be the indicated per-coupon rate for that

numbered year, as follows:

Your per Coupon fate
$ 1.20
1,22
1,23
1.25

1.27

ue ww wn ew

Children
(3) Children under five (5) years of age accompanied by
parent or guardian shall be carried free of charge, For each
cancelled coupon shown thereon to have been issued in connection
with the ticket covering « fare to a child five (5) years of age
or over, as the passenger, the applicable per-coupon rate shall bes
(aa) fifty per cent (SO) of the current coupon rate
applicable to adult fares under paragraph 3 (a) (2) hereof, if the
child's fare is for a child passenger five (5) years of age or
over, but under twelve (12) years of age; end

-6-.

—367—
PLAINTIF¥F’S EXHIBIT 100 (Continued)

(bb) ono hundrod per cont (100%) of the current
coupon rate applicable to adult fares umor paracraph 3 (a) (2)
hereof, if tho child's fare is for a child passenger twelve (12)
years of aro or over,
Special Fare Ccupons
(4) The applicable per-coupon rate for each cancelled
coupon shall not be changed without mutual consent of Transfer and
the Terminal Lines, to give effect to the fact either that
(aa) the transportation to which euch coupon
related covers & group passenger fare rate for the through
service involved which is less than the applicable regular pas-
senger fare for the same through service; or
(bb) the passenger to whom such cancelled coupon
relates was traveling under special quotation to government

agencies,

r

Additional Special Service Compensation

|
(S) In any case where, at the request of a Terminal Line,

thie service ia rendered to a group of paseengers involving the use
of special baggace equipment to permit the membere of the group to
meet another train during such period, such as a baseball club,
Transfor elhall be entitled to receive from the requesting Terminal
Line as additional compensation Five Dollara ($5.00) per hour for
each special vehicle for bageace transfer used.

(b) Transfer shall be entitled to receive for each cancelled
coupon delivered by it to the outgoing steamship line show thereon
serving the outgoing dock, and the steamship line handling the
passenrer from the outroing dock shall be obligated Mo maxe pf yment
to Transfer therefor, in accordance with the sare schedule of

Transfer and the applicable

charres epecified in pararraph 3 (a) above applicable between
oN Terminal Line for similar

service to the outroing station,

4. Tho Passenrer and Hbagpare Transfer Sorvice shall commence wien the
\
arriving passenrer presents himtelf and his Mbarrare to Transfer for transporta-

tion by Transfor, and she’ i terminate whon such passenrer is dolivored to his

Je

er

\
—368— ;
PLAINTIFF'S EXHIBIT 100 (Continued)

outgoing station or outgoing dock and his Hbarears is delivered to hia.
«-

4

Bargere Car Bargage Transfer Service

5. Transfer arreos to furnish and perform the following services (here-

inafter referred to as "Bargare Car Barrare Transfer Service"):
(a) Transfer's services with respect to such Barrage Car

Bageare Transfer Service shall be to perform during the normal

working day established under paragraph 6 (c) hereof, the following

services:

(1) To check, bill and manifest (hereinafte> referred to

as "clerical operations") in the barraro room of each incoming.

Terminal Line, all incoming bergage articles which that Terminal
‘ Line makes available for that purpose (her ‘ after referred t.o as

"Unserviced Bargare") to Transfer at a desienated space in the

baggare room of that Terminal Line commonly known as the Bargage
Dock. seal

(2) To load on its ow trailer at the baggage roan all
such Unserviced Bargare on which such cleric-. operations had been
80 performed (hereinafter referred to as "Serviced Baggage") by
its employee or employnos,

(3) To transport these loaded trailers from the baggage
room of the incoming station to the bareare room of tho designated
outgoing station and there unload then,

(4) To transport these loaded trailers to. the steamer
docks of the desirnated steamship line and there unload and
delivor the bagrare to the said steamship line,

(S) To perform at the steamer dock of each incoming
steamship line clerical operations with respect to Unserviced Bag-
gage, a8 definad above, which that steamship line makes available
to Transfer for that purpose, and there to load the Serviced Bagrage
on ite trailers and to transport these loaded trailers therefrom
to the barrage room of the designated outgoing station and there
unload then,

6, Transfer shall perform the said Barpere Car Bareage Transfer Service
in atcordance with the following:
@ 8 a

—369—

} .
PLAINTIFF’S EXHIBIT 190 (Continued)

(a) Checked barrare covurod by this sorvico shall inelude all
such items tranoported umlor chock for a ‘iusimaeins

(bo) Tranofor olall furnieh and operate a sufficient nusber of
vohicles suitable to porform the sorvice hereunder.

(c) Transfer shall perform all operations hwrounder on a
seven (7) day per week tats betwoon the hours of 8:00 A.U, and
5100 P.M. CST of the same day (hereinabove and hereinafter referred
to as "working day") to permit four (l) baggare transfers each day
from each terminal station. ~ |

(4) Human romains, as defined in applicable tariffs, shall be
transported from the barrage room of the requesting incoming
Terminal Line to the baggage room of the outgoing station; and for
that purpose Transfer shall use passenger equipment or its trailors

specially adapted for such use, or othr suitable equipment.

7. Transfer siiall be entitled to receive compensation computed in accord-

auce with the following schedule, from the applicable outgoing Terminal Line o@

outgoing steamship line, as the case may be, for services performed by it under

tno Baggage Car Bappage Transfer Service:

SCIEDULZ OF CHARGES
(a) Checked baggage, as defined in paragraph 6 (a) abover

(1) In any caso where Transfer has received payment from
tho outgoing Terminal Line for a cancelled coupon under paragraph
3 (a) hereof, such payment shall be treated by that Terminal Line
and by Transfer as payment +o Transfer by such Terminal Line for
Transfer's services rendered to it under the Baggage Car Bargare
Transfer Service with Feapect to tha chocked barrage applicable to
the throuvh tickot of which the cancellod coupon ving a part.

(2) In aay case other than pararraph 7 (a) Q) hereof,
the charge shall be an amount equal to the amount which Transfer
is thon currontly entitled to reccive for each cancelled coupon
applicablo to the throurh ticket of which the cancelled coupon was
a part.

(3) Human romains moving on revular ratiroad tickets:

_ vio (2) eouponsa plus ©5,10,

‘e.

—370—

PLAINTIFF’S EXHIBIT 100 (Continued)

(hk) “dunan romiins moving on tickots exchanged for
Oovernment | EEE Raquosts will be handled on the basie
of two (2) coupons, this to include transfor of escort, eo long
as the presont arrangomont for such movement of human remains
remains unchanged, .

(0) Transfer shall be entitled to receive compensation from
the applicable outgoing steamship line for services pecformed by it
under the Bargage Car Baceage,.Transfer Service computed in
accordance witn the sam schedule set forth in paragraph 7 (a)
above applicable to each outgoing Terminal Line for the

corresponding sorvice,

Special Baggage Transfer Service
8. Transfer agroes to furnish and perform the following services (here-
collectively referred to as "Special Baggage Transfer Service"):

(a) Subject to the conditions specified in paragraph 8 (b) (3}
hereof, to accept Hbarrare delivered by @ passenger to Transfer's
agent at incoming station for delivwry to the parcel room of a
designated outgoing station (hereinafter referred to as "PA Service"),

(>) Transfer shall furnish and perform the Special Baggage
Transfer Service in accordance with the following:

(1) The time schedule determined and established for the
Passenger and Hbaggage Transfer Service pursuant to paragraph 2 (a)
hereof shall constitute also the time schedule for the Special
Baggage Transfer Service,

(2) In carrying on its operations under this Special
Baggage Transfer Service, Transfer may use any vehicle or vehicles
used in, or suttable for, any other service rendered by Transfer
under this agreofient, or any other vehicle suitable for the Special
Baggage Transfer Service,

(3) PA Service baggare will be accepted for service
hereunder for delivery to the outgoing station upon the presontation
to Transfer of applicable coupon, plus the paymnt of 25¢ per piece

of barrare, plus rogular applicable parcel room charco fér 2h-hour

an 39) ao

uv

PLAINTIFF'S EXHIBIT 100 (Continued)

service prevalling at tho outpoing station. Such service will he
available for al} passengers up to three hous wfore achoduled
departure of train from outgoing station. PA Service barparo of
passenrers requesting this service with cielivery tims of lesa than
tons threo-hour period, may be accepted by Transfer in accordance
with the abcvo upon such conditions of acceptance as Transfer and
the passencor may arres upon,

(4) Transfer shall obtain revenues for such services »y
billing in the ueual manner to the outroing Terminal Line for the
coupon involved, and shall retain for itself 25¢ for each piece of
baregage and shall remit to the outgoing station parcel room at time
of aslivery, charres colloctad for such service,

(5) Tho Special Baggare Transfer Servic® commences when
the bacrace involved therein is received by Transfer's arpsnt at
the incoming station; and such service terminates when such bayeage

is delivered to tha parcel room of the outgoing station.

Baggage Pickup and Delivery Service

9. Transfer agrecs to furnish and perform the following services (here-
inafter collectively referred to as "Baggage Pickup and Delivery Service"),
within the terminal area:

(8) To transport from any point in the terminal area to the
unloading platform located in any outgoing atation bargage of pass-
enrer intended for transport as checked bagrage.

(b) To transport any incoming bagrara of an incoming passenger
from any incoming station to any destination in the terminal arsa. P 4

(c) Transfer oha}l furnish and perform the Bagrare Pickup and
Delivery Service in accordance with the following:

(1) Tho normal working day determined and established

for the Barrare Car Baresee Transfer Service pursuant to

paragraph 6 (c) hereof shall constitute also the normal working

day for the Bareare Pickup and Delivery Sorvice.

(2) In carrying out its oporations under this service,

Transfer may-use any vehicle or vehicles used in, or suitable for,,.

any other cervico romlored by Transfer undor thin Amrooront, or

'

-jll-

—372—

PLAINTIFF’S EXHIBIT 100 (Continued)
any otier vehiclo suitable for the Barpare Pickup and Delivery
Durvice.

(3) Outpoing bargare will be accepted vy Transfer from
the paseenror and incoming bargape will be accopted by Transfer
from the incoming Terminal Line in accordance with the applicable
tariffs,

{d) Transfer shall be entitled to receive compensation
computed in accordanco with the followin. schedule for cervices
rendered by it undor the Bargage Pickup and Delivery Service,
payment for which will be received by Transfer in accordance
with pararraphs (d) (1), (2), and (3) hereunder:

(1) For incoming baggage delivered by Transfer to the
desipnated address wiiich was forwarded on prepaid delivary check
isoued by the abictentide carrier, Transfer shall be entitled
to receive \ponpensation for such service from the incoming
Terminal Line in an amount equal to the applicable tariff charges
for such service,

{2} For outroing bagpare delivered by Transfer to the
outgoing station, Transfer shall be entitled to retain as ite
compensation for such service an amount equal to the applicable
tariff charge far such service collected by Transfer {rom the
passenger checking, such bagpare.

(3) Where the incoming bagpage delivered by Transfer
has been forwarded under collect delivery check, Transfor shall
make collection for the account of the incoming Terminal Line af
the applicable tariff charre upon making delivery of such barrage
at the address of the incoming pas3enrer and shall retain such
charres an compensation for its seorvicos. Whore the outrotng
baregare dolivored by Transfer to the ovutroing station is
forwarded undar prepaid delivery clock, Transfer shall make
collection of the applicable tariff charsa upon acceptance of
the bacgare from the passenger and, shall retain therefrom the
portion of such charre applicable amine the tariff to the movement

from the place of pickup to the eutgoing station as compensation

oj? «=

—373—
PLAINTIFF’S EXHIBIT 100 (Continued)

for its services and shall deliver the balance of the collectian
to the outgoing Terminal Line at the tim of delivery of the
baggage te such Torminal Line,

(e) When bargage is delivered to Tranefer by the passenger
for transportation to an outgoing station, Transfer shall
deliver to the passenger the appropriate baggage check under
applicable tariffs upon presentation of proper transportation,

(f) For incoming taggage, Baggace Pickup and Delivery
Service shall commence when it 4a Gelivered to Transfer for
delivery to the Passenger, and shall terminate when such baggege
ie delivered to the address designated in the claia check and
the pascngor's duplicate claim check for euch baggage or in
the ebsonce thereof a written receipt therefor is procured by
Transfer. For outgoing baggare, such service shall commence
whon it ie delivered to Transfer for transport to the cesignated
outgoing station, and shall terrinats when such baggage is
delivered to the unloading platform of such station and the
@ppropriate receipt is ssoured therefor,

General Provisions
10. Transfer agreos that:

(a) Transfer shall establish a radio control system and &
Centra) dispatch system at a centrally located site to provide
control of movement and dispatch of vehicles ueed by it in the
service under this Agreement, 80 as to fill the need for then
at the time and place required for safe and efficient performance
of the required sorvice,

(>) Transfer shall establish a headquartora administration
office in association with the central dispatch system office to
provide suitable space for the administrative, financial and
executive functions of Transfer,

(¢) ‘Cammencing with the date when any transfer service wader
this Agreamnt shali start, and thereafter during the effective
term of this Agreement, Transfer actrees to indemnify and save

—374--

PLAINTIFF'S EXHIBIT 100 (Continued)
harmless the Terminal Lines and/or Depot Companies, and all stean-
ship lines which by separate acreoment shall adopt the terms of
this Agreement, thoir resfective officers, employees and agents,
and to asoum liability imposed by law on any of the parties
hersto, for doath of, injury to, any persons wharnsoever,
including, but no} limited to, officers, erployees, agents,
patrons and licensoes of ther perties hereto, and liability
impoced by law on aiy of the parties hereto for loss of or damage
or injury to property, including, but not limited to, that belong-
ing to the partios hereto, arising fran, growing out of, or in
any manner ar dezreo directly or indirectly caused by, attributable
to, or resulting from the acts or omissions, negligent or otherwise,
of Transfer, ita opnats, sorvants or employees, tocother with all
liebility for any expenses, attorneys’ fees and costes incurred or
sustained by any or all of the Terminal Lines and Depot Companies
and steanship lines in connection therew th, Transfer agress -
@lso to release and indemify and save harmless the Terminal Lines
and/or Depot Companies, their respective officers, employees and
agents, fran all liebility imposed by lew on thom to Transfer,
its officers, employees and apents, far deaths or injury to
persens and loss of or damage to property (including attorneys!
fees, costs and expenses incurred therewith), resulting from
railroad operations at or near the area in which operations under
this Agreement are conducted, unless such liability results frog
the sole negligence of the Terminal Lines and/ur Depot Companies,
their respective officers, employees or agents, Transfer, upon
recaipt of notice to that effect, shall assum the defense of any
Claim based upon allegations purporting to bring said claim within
the coverage of this section, Without in any manner restricting
the extent of the obligations sc assumed, Transfer agrees to
procure for the additional protection of the Terminal Lines and
the Depet Companies and steamship lines and keep in full force
and effect at all tims during the life of tus Agreement

othe

—375—

PLAINTIFF’S EXHIBIT 100 (Continued)

contractual-typo insurance in form and with companias approved by
the Terminal Lines and/or Depot Companies covering the risks and
odliratiais assumed by it under thie Agreemont subjoct to all of
the temas, conditions ead exclusions of the basic policy contract
not inconsistent with this Agreamont, with full limite of Mme
Million Dollars ($1,000,000) to be maintained at all timos, except
asis otherwiso provided as to anounte in paragraph 10 (0-1).
Such insurance shall contair. a provision that it may not be
cancelled without thirty (30) days' notice in writing to Zarl B,
Padrick, Agent for Terminal Lines and/or Depot Corpanies, and
during such thirty (30) days Transfer shall arrange to secure
substitute coverare entirely satisfactory to the Terminal Lines
and/or Depot Companies, All applicable tariff provisions of
Terminal Lines and/cr Depot Companies and steamship lines shall
inure to the benefit of Transfer,

(c-l) As respects cargo insurance coverage on bagrasa,
Transfer afrees to procure for the additional protection of
Terminal Lines and/or Depot Companies and steamship lines, and
keep in full force and effect at all times during the life of this
Agreement, carge insurancé.on baggage and with companies approved
by the Terminal Lines and/or Depot Companies covering the risks
and obligations assumed by it under this Arreement subject to all
of the terms, conditions and exclusions of the basic policy
contract, not inconsistent with this Arreoment with limite or
Fifty Thousand Doliars (250,000) per truck or whicle and
Two Hundred Fifty Thousand Dollars ($250,000) per catastrephe
covera7e to be maintained at all tims. Such insurance shall
contain a provision that it may not bo cancelled without thirty (30)
days' notice in writing to Farl B. Padrick, Agent of Terminal Lines
and/or Depot Companies, and during suchy thirty (30) days Transfer
shall arrange to secure substitute coverage entirely satisfactory
to the Terminal Lines and/or Depot Companies, All applicable
tariff provisions of Terminal Linos shall inure to the benefit of
Transfer,

/
/

—376—
PLAINTIFF’S EXHIBIT 100 (Continued)

(4) Transfer ohall carry morte Compensation etd Employers!
Liability Insurance to cover Tliinots State SoqireneNs.

(eo) all erp loyees of Transfer shall be covered w Indernity
Bond Insurance,

(f) Avvropriate certificates covering all insurance herein
shall be delivered by Transfer to the Terminal Lines, Depot
Compentes, and steamship lines.

(g) All equipment used in the service of Transfer shall be
maintained in good repair and capable of performing the transporta-
tion service for which it was intended, with safety, efficiency,
comfort and convenience to the passengers and to the personnel
participating thereiny and to the extent considered practical or
advisable to construct and equip any semi-trailer with suitable
electrical cumnection equipment ant construction te permit
connection with suitable wall plugs in the surrounding station
area where the seri~trailer is placed, for lighting purposes, to
permit operation within the interior of the sevi-trailer without
the use of tractor power.

(h) Transfer shall create and maintain practices and facilities,
including preventative equipment and reserve equipment, to assure
that Transfer's equipment used under this Agreement will be st all
times in first-class condition and appearance, erd that such aqulp-
ment and the necessary personnel for rendering esrvices therewith
will be adequate in amount and number and will be available at the
tine and place required to provide efficient performance of the

re intended for them under this Agreement,

(1) Transfer shall maintain the corporate name "Railroad Trans-
fer Servico, Inc." 2

(j) The color of equipment and any sfgne o desipnations
appearing on such equipment will be subject to mutual agreement

between Transfer and thw Terminal Lines.

(k) A copy of the Annual Auditeof Transfer as of the end of each
of its fiscal yoars, cortified by the certified public acccuntants

- 16 «-

‘

—377—
PLAINTIFF’S EXHIBIT 100 (Continued)

employed by Transfer in the recular course of ite business, will
be delivered by Transfer to the Arent of the Torminas Lines
Within thirty (30) days after auch Annual Audit is compl-ted,

(1) Transfer shall comply at all times with all lgwe, rules
and regulations of governmental aponcies having jurisdiction over
it, and/or the services performed herounder,

ll. The parties hereto mutually agroe that: .

(a) Transfer shall not be liable for delays caused by
accidents, breakdowms, bad canditions of road, snowstorms and
other conditions beyond ite control, Transfer doses not Ginrentes
to arrive st, or depart from, any terminal station or steamer tock
at any specified time, other than to use ite best efforts to carry
out the operations recuired fre the performance of its service
under thie Agreement so as not to prevent the departure of the
passencer and his baggage at the departure timo which he otherwise
would met,

(b>) All forms of receipts, manifeste and villings adopted far
use in the services covered by this Agreement snall be epproved by
all parties to thie Agreement -

(c) All services of Transfer under this Agreement shall can-
mence on the earliest of the following dates (hereinafter referred
to as "S.rvice Commencemint Date"): Octber 1, 1955, or @ prior
date specified in a written request by Arent of the Terminal Lines

| to Transfer to camnence such service, which is delivered to Transfer
at least twenty-four (24) hours before such specified date,

(d) The term of this Agreement mii we fram the Service
Commencement Date, a8 indicated in parag-aph 11 (c), to and
including September 30, 1960,

(e) During the effective term of this Agreement, the type and
chaPacter of sorvice, and the charre therefor as provided in this
Agreement, shall not be affected in any manner in the event that at

y any time or
—382—
PLAINTIFF’S EXHIBIT 10) KO
PARMELEE TRANSPORTATION COMPANY C. ae
SUMMARY OF REVENUES AND EXPENSES
- FROM
CHICAGO RAILROAD TRANSFER SERVICE OPERATIONS
By

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386410_0108%3A06. Public record. Not legal advice.