P.M. Executive Briefing - Dec. 28
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Census Figures to Alter U.S. House
New U.S. population totals released Thursday will change a lot of seats in the U.S. House of Representatives, news services reported.That could have implications for future government policy on many trucking issues, since lawmakers often vote in keeping with the priorities of their states or region. In general, states in the Midwest and Northeast will lose some clout in the House, while those in the South and West will gain.
Based on a new national population of 281.4 million - which is up about 33.4 million from the 1990 count - each of the 435 House seats would represent about 625,000 people, CNN.com noted.
States to pick up one House seat each are California, Colorado, Nevada and North Carolina. States losing a single seat each will be Connecticut, Illinois, Indiana, Michigan, Mississippi, Ohio, Oklahoma and Wisconsin. Transport Topics
Clinton Hikes Projected Budget Surplus
In a development that gives more ammunition to those arguing for various tax cuts - including some sought by the trucking industry - President Clinton on Thursday raised his administration's 10-year federal budget surplus estimate by $300 million to $1.9 trillion.Although Clinton used the news to push his own preference for using surplus funds to pay off federal debt by 2010, it also supports President-elect Bush's argument that there is plenty of surplus tax revenue to cover his proposed tax cut package while meeting other spending or debt-reduction goals.
Trucking interests have supported a raft of tax cuts in recent years, such as meal deductions for truckers, fuel-tax relief and elimination of the estate tax that hits families owning truck companies or equipment. Transport Topics
Dealer Files $30M Lawsuit Against Volvo
Great Southern Truck Co., a Volvo dealer based in Richland, Miss., has filed a $30 million suit against Volvo Trucks North America.In the suit, Great Southern alleges that Volvo exerted "undue control" over the company as well as using "false or misleading advertisements" in connection with Volvo's Cost Per Mile program.
The program, for which a national roll-out was announced in March, covers all maintenance on a truck at a pre-determined, guaranteed cost based on the number of miles the truck is expected to log.
Great Southern, one of the first dealerships to offer the program, prior to its national rollout, has charged that Volvo failed to honor its commitments to reimburse the dealership for costs associated with the program.
Volvo officials could not be reached for comment. Dan Lang, Transport Topics
Winter Weather Hinders Truck Traffic Across the U.S.
Winter ice storms slowed or blocked trucks traveling through the Plains and the South on Thursday.In Texas, icy roads left over 1,000 truckers and motorists stranded on Interstate 20 near Abilene, the Associated Press said. Several trucks crashed on the snow-covered east-west artery Wednesday evening, backing up traffic for 20 miles. Additionally, an AP photograph showed trucks on Arkansas's Interstate 40 backed up for several miles.
The northern Plains, including North Dakota and Minnesota, were expected to get up to 8 inches of snow as drivers were warned to stay off the roads, said CNN. Western Maryland and the eastern part of West Virginia also anticipated cold weather and slippery roads.
Since Monday, 37 people have died as a result of the cold weather, including 22 who died in accidents on Texas highways, AP said. Transport Topics
Retailer Montgomery Ward to Close Down
Large but long-ailing U.S. retailer Montgomery Ward said late Thursday it will end operations, and over the next few months will close its 250 stores and 10 distribution centers. The company has 37,000 work-ers in 31 states, the Associated Press said.As with any major change in retailing or manufacturing, the shutdown will of course hit a lot of trucking operations across the country that keep Ward stores supplied.
The news was just the latest sign of trouble spreading through the economy, hitting weak and strong companies alike. Earlier this week, the 105-store Bradlees retail chain said it was filing for Chapter 11 bankruptcy protection while it liquidates its assets. And railroad giant Union Pacific (UNP) said a sharp downturn in economic activity in recent weeks would hurt its fourth-quarter earnings and force the company to cut jobs and capital spending plans.
Last Friday, refrigerated truckload carrier Asche Transportation said it had filed bankruptcy petitions to liquidate its Asche Transfer and AG Carriers subsidiaries.
Ward's, a unit of General Electric's (GE) GE Capital, had been in business for 128 years, but had been through an earlier bankruptcy reorganization and just emerged from Chapter 11 in 1999. AP cited remarks by some company employees leaving Ward's Chicago headquarters that GE Capital was now pulling its financial support after weak holiday sales. Transport Topics
Transport Corp. Buys Back Common Stock
Transport Corp. of America (TCAM) said Thursday that it has repurchased 1.15 million outstanding shares of common stock with associated put rights. These rights allowed shareholders to sell the shares back to the company at a set price.The purchase was made for $7.8 million in cash and $11.7 million in promissory notes. The shares were originally issued in connection with Transport's acquisition of North Star Transport Inc. in July 1998.
The Minneapolis-St. Paul-based company provides truckload freight and logistics services in the United States and Canada. Transport Topics
RailAmerica Sells Canadian Truck-Trailer Subsidiary
Regional railroad operator RailAmerica Inc. (RAIL) announced Thursday that it has sold certain assets of its Canadian trailer-manufacturing subsidiary Trois-Rivieres Trailers Inc. to help pay off company loans. Canam Manac Group of Saint-Georges, Quebec bought the subsidiary for $6 million dollars. RailAmerica's U.S. trailer subsidiary, Kalyn/Siebert, was sold to Heil Trailer International earlier this month. RailAmerica also plans to liquidate $3 million of Trois-Rivieres' assets.
Trois-Rivieres manufactures truck trailers used for transporting solid waste, agricultural products and construction materials. Canam produces semi-trailers, construction components, steel joints and forestry equipment. Transport Topics
Bush Selects Donald Rumsfeld as Defense Secretary
President-elect Bush named Donald Rumsfeld, former defense secretary under President Gerald Ford, to head the U.S. Defense Department once again, the CNN reported.Rumsfeld served as defense secretary from 1975-1977. He also served as Ford's chief of staff and was counsel to President Richard Nixon from 1970-1973.
Rumsfeld has experience in the private sector as former chairman and chief executive officer of pharmaceutical giant G.D. Searle & Co. He has also served on several corporate boards and advised investment-banking firms.
Bush did not name any other administration officials Thursday afternoon, but said he plans to name most of his Cabinet members by the first week of January. Transport Topics
New Idaho Law Quadruples Small Truckers' Costs
A new state law in Idaho that charges flat registration fees for trucks based on the range of miles it travels is pinching smaller trucking companies, the Associated Press reported.Under the system, trucks that travel 7,500 miles or fewer pay the lowest amount, but trucks that travel 7,501 to 50,000 miles pay four times than what they use to under the old weight-distance tax. Registration for an 80,000-pound truck that goes 7,501 miles costs $1,920 compared to $337 under the old law, the article noted.
Because of the increased cost, small trucking companies are now operating fewer trucks within their fleets, the article said. The state legislature is re-evaluating the law in an effort to keep it from driving the truckers out of business.
The American Trucking Associations sued the state in federal court over the state's weight-distance tax, and the law was ruled unconsitutional in February because it discriminated against interstate truckers. As part of a settlement, Idaho replaced the ton-mile tax with the higher registration fees in June. Transport Topics
Headlines From Today's A.M. Briefing
- Iraqi Oil Exports Brings Prices Down
- Pressure Rises on Bridgestone to Settle Lawsuits
- Union Pacific Warns on Earnings, Cuts 2,000 Jobs
- Consumer Confidence Drops to Two-Year Low
- Parts Maker American Standard Cutting 1,200 Jobs
- Landair Appoints New President
- Trinity Industries Expects Low Earnings
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