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Newsday from New York, New York • 13

Publication:
Newsdayi
Location:
New York, New York
Issue Date:
Page:
13
Extracted Article Text (OCR)

of of state and Trucking LI experts dispute effects of bill signed by Carter By Daniel Kahn Newsday Long Island Business Editor President Carter signed an interstate trucking bill yesterday that he maintained could save consumers as much as $8 billion a year by removing unnecessary regulations, some of which date back almost a century. Administration officials say the savings will come from increased competition in the $41-billion-a-year industry. Trucking experts in Nassau and' Suffolk agree that the bill will foster initial competition, but they disagree on how that competition will affect the industry in the long run. Ken Miller of the Hempstead-based Douglas Miller Associates a national consultant to various companies, said the law "has the potential" to reduce trucking costs. But Donald A.

Klassen of Perkins Trucking based in Long Island City, and William A. Augello of the Freight Users Association of Long Island, which represents shippers, said it will bring higher rates and put more trucks on the Long Island Expressway. The law changes many federal restrictions, including some that have been in place since 1887. It makes it easier for new carriers to enter the industry and for existing carriers to expand. It also allows carriers to raise or lower rates 10 per cent per year.

As the Long Island Rail Road's freight system has declined in recent years, industry in Nassau and Suffolk has grown more dependent on trucking. More than 85 per cent of the Island's commodities are brought in by truck, while bulk goods such as coal, lumber and paper continue to be transported by rail. In Miller's view, the law will end a situation in which Long Island shippers received inferior treatment by New York City industry. Shipments to the Island of less than 1,000 pounds, from certain territories, carried an additional fee, known as "arbitraries." The carriers claimed the "arbitraries" compensated for the necessity of passing through the congested city to get to the Island. "That argument was absolutely and totally without merit," Miller said.

The new law is intended to help end that sort of penalty fee, according to Miller. In some cases under the new law, he said, such fees can be eliminated through negotiation. In other cases, the new law lets the penalty fee stand in return for other concessions, reducing the overall shipping cost. Miller was unable to estimate what any savings might average. That will depend on the influx of new carriers, he said.

But Klassen said the law will help larger carriers like Perkins expand to other areas while bringing higher freight rates to smaller shippers. And the smaller shipper, he said, is the basis of the industry on the Island. A rate war will break out over truckloads of 30,000 to 40,000 pounds, Klassen said, but that will have little impact on the Island. "The average shipment we handle on Long Island is less than 1,000 pounds," he said. The law removes most restrictions that limited pickups of goods to certain locations.

But Miller said that back an empty truck after delivering a load--had become less of a problem in recent years as industry spread eastward to Hauppauge. Augello, however, said trucks returning west often carry loads only 15 per cent of capacity. "You end up putting more trucks on the road." In the long run, he said, the weaker competitors will drop out and prices then will rise. Klassen said that air-freight costs have risen 30 per cent since airline deregulation took effect. And Augello said that, if the trucking law "works anywhere near how the affected Long Island, I think it will be a disaster.

We'll see overcompetition, higher rates and unnecessary traffic deaths from unsafe operations." To reduce costs, he said, the small trucker will cut corners. "If a guy has to make a delivery, he's not going to stop for a new tire." AP Photo Carter and Kennedy at a Rose Garden ceremony Together at Last The Los Angeles Times Washington- Despite repeated urg- Anderson Forging Ahead, Page 15 ings from his Democratic Party foe, President Carter never left the haven of the White House Rose Garden to debate Sen. tion." He added, "I want to commend the Edward M. Kennedy. But Kennedy went President and the administration for the to the Rose Garden yesterday, along with very special effort they have made in a dozen other legislators, to watch Carter law a bill that greatly eases fed- achieving this moment here today.

sign into eral restrictions on the trucking industry. Then he launched into what sounded Kennedy arrived at the front of the like the start of a campaign speech. "The West Wing in a big black limousine eight No. 1 concern of the American people is minutes before the 9:30 AM ceremony. He the state of our economy." Then Kennedy walked into the Rose Garden with the oth- went on to extol the virtues of the law, and lined up in a row behind with an indirect jab at Carter's economic er legislators the desk and chair at which Carter would policies when he said the bill, expected to sign the bill.

At one point, the Massachu- save consumers $8 billion in trucking setts senator noticed in the crowd some of costs annually, probably more to would do the reporters who had been covering his "dampen the fires of inflation" than any campaign. He grinned and caressed the other act of this Congress. back of the President's chair. It was the second meeting of Carter After Carter paid tribute to the com- and Kennedy at the White House and mittee chairmen and others involved in the first in public since Kennedy the bill and summoned them to the ros- launched his challenge to Carter. The trum to say a few words, he called on other time was after the June 3 primarKennedy to speak, too.

Carter praised ies, when Kennedy spurned Carter's him for long years of work on the bill, peace offerings and said he would con- saying Kennedy did it "sometimes alone, sometimes facing discouragement, but never giving up on the concept." Kennedy opened with a quip: "Well, there's no debate on trucking regula- tinue to pursue the nomination. In an interview yesterday with The New York Times, however, Kennedy said that under some circumstances he "could" support the President's re-election. Love Song for the State of New York By Bob Keeler An aide to Assemb. Paul HarenNewsday Albany Bureau Chief berg (D-Bayport), who sponsored the Love New York" is now bill, said Gary and his family were in officially on the lips of New York, but Albany Monday night, to attend what not necessarily on its license plates. they thought would be a signing cereIn a Red Room ceremony yesterday, mony yesterday, when one of Carey's Gov.

Hugh Carey officially pro- counsels called Harenberg's office claimed "I Love New -written about a hitch. The counsel said the by an advertising jingle writer who bill might cause a constitutional probhad earlier sung the praises of Miche- lem if the language on the plate was lob, Budweiser and General Tires- -as mandatory for everyone. New York's state song. So Harenberg agreed to recall the But there was no ceremony for bill to amend it to make the logo an Gary West, a 13-year-old from West option. Sayville whose disappointment with The new plates weren't going to be the state's drab license plates led to issued until next June, and- the the passage of a bill putting may be passed by then.

Love Newark meld intel But Carey id not sign the plate bill inspired by Gary. The occasion was brighter for Steve Karmen, 43, who has written almost 2,000 jingles and won the advertising industry's Clio awards 14 times. His agency--Wells, Rich, Greene--settled on the now-famous four-word slogan. Karmen wrote the music and the lyrics -which go: I love New York. I love New York.

I love New York. There isn't another like it No matter where you go And nobody can compare it It's win and and shout Neu ol. 'Cause there's no place on Earth Quite like New York. And that's why I love New York. Karmen, who donated his music rights on the song to the state, made a speech dedicating the song to his father, Hyman, a Russian immigrant who was a New York City civil servant for 44 years.

"If my father were here today," he said, "he would be the proudest of all of us. Proud not only for his son's achievement, but proud for yet another confirmation of the miracle that is America, where the son of at stand with the the be hor.or SP rent.

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