Interstate Trucking of Frozen Fruits and Vegetables under Agricultural Exemption

Excerpts from the report Introduction: On May 7, 1956, the Federal District Court of the Western District of Washington declared that frozen fruits and vegetables were exempt commodities as defined by the Motor Carrier Act of 1935, as amended. Section 203(b) of that Act declares: "Nothing in this part, except the provisions of Section 204 relative to qualifications and maximum hours of service of employees and safety of operation or standards of equipment shall be construed to include * * * motor vehicles used in carrying property consisting of ordinary livestock, fish (including shell fish), or agricultural (including horticultural) commodities (not including manufactured products thereof), if such motor vehicles are not used in carrying any other property, or passengers, for compensation." The U. S. Supreme Court affirmed the decision of the lower court on November 5, 1956. The result of these decisions was to confirm the exemption of the interstate motor transportation of frozen fruits and vegetables from economic regulation; that is, control over rates, routes, etc., by the Interstate Commerce Commission. This study supplies information regarding changes in the volume of shipments and market distribution of frozen fruits and vegetables by geographical regions and by types of carriers associated with the change in economic regulation. It also provides information on different phases of service, freight rates, and equipment, which would permit comparisons to be made between regulated and exempt motor carriers with respect to these particular items. Because of the importance of rail carriers in the frozen fruit and vegetable traffic, comparisons of freight rates and service are also made between rail and motor carriers. This is a "before" and "after" study, comparing the conditions in the frozen fruit and vegetable industry for the calendar years preceding and following the 1956 court decisions.