President Jimmy Carter Urges Sen. Robert Byrd to Support Deregulation of the Trucking Industry As Part of His Broader Deregulation Scheme

Jimmy Carter’s administration is remembered for its deregulation work, which changed the face of the airline, trucking and railroad industries. These were the first comprehensive proposals to deregulate major industries in the United States.

The federal government has been regulating prices and competition in interstate transportation ever since Congress created the Interstate Commerce Commission (ICC) to oversee the railroad industry in 1887. Truckers were brought under the control of the ICC in 1935 after lobbying by state regulators, the ICC itself, and especially, the railroads, which had been losing business to trucking companies. The Motor Carrier Act of 1935 required new truckers to seek a certificate of public convenience and necessity from the ICC, and these were hard to get. Moreover, the law required motor carriers to file all rates with the ICC thirty days before they became effective. Anyone, including a competitor, was allowed to protest, the ICC normally suspended the rates pending an investigation. From 1940 to 1980, new or expanded authority to transport goods was almost impossible to secure unless no one opposed an application. The Motor Carrier Act of 1980 decontrolled trucking and made it significantly easier for a trucker to secure a certificate of public convenience and necessity. It also required the ICC to eliminate most restrictions on commodities that could be carried, on the routes that motor carriers could use, and on the geographical region they could serve.

However, not everyone was thrilled with these measures. Some saw them as a first step toward monopolization by a small number of companies, while others feared that only major routes would end up served. In the case of the trucking bill, this latter situation would be a detriment to farmers. One of those unconvinced of the need to reform trucking was Sen. Robert Byrd of West Virginia. He served as a U.S. Senator from 1959 to 2010, the longest stretch in the Senate’s history. President Carter appealed to him to support the Motor Carrier Act, in this very letter.

Typed letter signed, on White House letterhead, April 15, 1980, to Byrd. “The Senate is expected to vote shortly on the trucking regulatory reform legislation recently reported by the Commerce Committee. This legislation will increase competition, conserve energy, improve service to small communities, and eliminate arbitrary restrictions on the routes truckers can take and the goods they can carry. Congress has already passed, and I have signed, far reaching deregulation laws covering airlines and banking. In addition, legislation covering railroads, communications, paperwork reduction, and the regulatory process itself continues to move forward. This is the broadest regulatory reform program in our history, and trucking deregulation is a vital element. The Cannon-Packwood Bill also provides an opportunity for the Congress to reduce inflation. The Congressional Budget Office estimates that this legislation will save $5-8 billion per year – an average of $70 to $100 for every household in America. This represents a reduction in the Consumer Price Index of almost one-half of a point. I therefore urge the Senate to resist any amendments to weaken this bill. In particular, the broad exemption for agricultural products should be retained. This provision will have a direct, beneficial impact on the price of food. Our economy needs the savings now, and I urge the Senate to approve this legislation.”

Carter’s efforts failed to change Byrd’s mind; be voted no. But, of course, the legislation passed and Carter signed it into law.