 The loan sharking, the numbers game, and prostitution as a major criminal activity turned such theft a serious threat to the reliability, efficiency, and integrity of the nation's commerce. One which seriously erodes industry's profits, results in higher prices for consumer goods, and provides support for unlawful activities. It's estimated that the overall loss from cargo theft runs several billion of dollars a year. That's two billion or more dollars. Now the federal government is taking some voluntary steps to support the transportation industry in its fight against cargo crime, although I feel that much more could be done. City campaigns have been instituted under the direction of the Department of Transportation to coordinate the efforts of industry, labor, and the law enforcement community. The Department of Justice through the Law Enforcement Assistance Administration is underwriting the development costs of new security concepts. This movie is a report on such a concept, a cargo security system for the trucking industry. This concept has been developed for LEAA by the Aerospace Corporation and its subcontractor, Hoffman Information Identification Incorporated of Fort Worth, Texas. Congressman Pickle's reference to the overall cargo theft loss of several billions of dollars that's billions with a B, included ship, train, air, and truck cargo. Now nearly all of those several billions of dollars in cargo theft occur in the trucking industry. These cargo loss figures represent only the actual dollar loss claims paid by the carriers. The real cost of cargo crime is many times higher. The utmost consideration is the cost of claim processing and security, which cuts deeply into the carrier's already thin profit margin, and ultimately forces up the cost of all goods to the American consumer. We looked into where and how cargo thefts actually occurred in the trucking industry. Now using data from industry, as well as the Department of Transportation, some interesting things surfaced. The most newsworthy part of cargo theft is truck hijacked. It is dramatic, certainly sensational, and most dangerous to the driver. Less well known as grand larceny, as practiced by this thief who is hooking up his tractor to steal this fully loaded trailer. Included in this group is breaking and entering. These three, hijacking, grand larceny, and breaking and entering, comprise less than 15 percent of all trucking theft losses. This 85 percent is the biggest part of the cargo theft problem. Here is Mr. Harlan Flinner, past president and currently on the board of directors of the Association of Transportation Security Officers. He is director of loss prevention for one of the nation's largest trucking companies and acknowledged leader in the field of cargo security. 85 percent of cargo theft starts right here at the terminal. The investigation uncovers the fact that local pickup and delivery operations like this one suffer the majority of all direct losses. It's a single carton theft, as well as pilferage of part of a carton's contents that really make up this 85 percent. Here's the essence of the problem. In order to benefit from stealing this carton, the insider must get it out of the freight terminal. But security measures can deter the illegal departure of merchandise. For example, the entire terminal area is fenced in. We spot check lunch boxes and personal packages, closed circuit televisions, unauthorized vehicles must park in separate fenced off areas. The credentials of each incoming vehicle are checked. But although security measures like these minimize the problem, this carton can still get out. It's the authorized pickup and delivery truck leaving this dock with its cargo that provides the wheels for the goods which are stolen from the truck later in the day. Have a good day out there and pick up a lot of freight. The problem is to protect the contents of the truck. But we need to thwart the inside man as well as the outside man and know in real time the crime is taking place. The truck driver cannot be his own security guard. He or his family would be liable to threats by the thieves. In fact, he is instructed by his management to do whatever the thieves demand. It was necessary to develop a system which would enable surveillance to be made without the high cost of guards following the truck in another vehicle. Well, with all the theft, lost data compiled and balanced, analysis showed that to be cost effective, the total operating cost of such a cargo security system should not exceed $1,000 per year per vehicle. Now with the help of trucking security officers like Harlan Flinner, the concept of an electronic vehicle surveillance system came into being. Now let's see what's in this concept we developed to attack the rip-off as well as to protect the driver. Let's start with an example very much like our opening scene. Some cartons being ripped off a truck. Now at the very time the theft is taking place, a sensor is triggered on the truck and the signal goes to the electronics in the cab and another electronic system determines the exact location of the truck. Let's call these our detectors and locators of the crime and have the information transmitted back to the trucking company where our system gives the warning in real time. With this warning, the dispatcher can immediately alert the police as to what is happening and where. Police car assignment could then be earlier followed by rapid and direct response. If early arrival is achieved, then we cut off the outlet to the fences and shady dealers. This concept had to be translated into real hardware. To keep the cost down, remember we set our upper limit at $1,000 per year per vehicle. We were able to use available sensors and displays and develop a way to piggyback or share the truck radio communication channel presently used by the dispatcher. First let's look at this channel sharing. This is where the dispatcher keeps track of all his trucking assignments. The very same voice channel can deliver location and truck sensor information to the computer here in the console. This display shows overall status of the trucks. When any sensor on the truck is activated, that truck's readout blinks and the dispatcher can investigate what is happening. Individual truck data is more detailed, giving status of all sensors as well as location. The dispatcher's observation of combinations of activated sensors plus his determination of non-authorized location infers trouble. Hard copy printouts provide a permanent record. Good night, the same sensors help protect the parked and locked vehicles using a special low power communications link to alert the guard to any suspicious activity. Now let's see the sensors that detect the theft and cause that blinking. Here's a sensor that detects the opening of the cargo door. Notice the blinking of line three. Now, when we key in this individual truck's status, we see that it's the cargo door sensor that's causing the blinking. Here's the intrusion sensor that reacts to anyone entering the cargo space. This sensor will work even if the thief cuts through the side or the roof to gain access. Here's the sensor that's installed in the cab door to indicate door opening. And there's a seat sensor installed in this truck seat to show driver presence. If the loaded truck is stolen after hours from the lot, we also have this magnetic sensor on the wheel to signal if the truck is being moved. All the sensors you've just seen were available off-the-shelf items, but the tough problem was to find a reliable, low-cost vehicle location system accurate within about one city block so we could determine whether or not the stop was authorized. A market survey showed that no hardware was available within our cost limitations. The aerospace corporation's technical analysis identified two location systems as having the potential to stay within our accuracy and cost parameters. The first of these two methods uses very small transmitters, like this one, mounted on utility poles along the truck routes. Each transmitter radiates a unique identification code over a limited area. Now, as the truck passes the small area covered by this unit, its receiver picks up that particular coded transmission and transmits it back to the base station. Now, since that transmitter is the only one in the city with that particular identification code, the computer determines where the truck is. This basic technique was well-established, but the number of transmitter installations made this system too expensive. We were able to eliminate three out of five of these transmitters, called electronic signposts, which then made the system cost-effective. The other electronic location system uses synchronized radio signals from three AM broadcasting stations to form an electronic navigational grid, which we call the AM phase lock system. Now, as the truck moves through the city, its receiver picks up the AM signals, compares them, and relays the comparison back to the base station computer, which matches the information to the established grid over the city for accurate determination of location. In order to verify feasibility of this AM broadcast concept, experimental receivers were hand-built into these three large chassis and installed in this golf cart to provide mobility. Concept feasibility testing was conducted using these experimental receivers to measure critical distances, which were found to be extremely stable when checked versus known landmarks. All that electronic gear has been miniaturized into this receiver unit for easy installation of the truck. This unit is the truck's master control for interfacing the whole system to the regular communication channel. The final decision was to include both electronic signposts and the AM phase lock system in our first testing program to check system hardware feasibility. In this pilot test program, sensors and control units were installed in six trucks. Their routes were selected to provide us with data in a tough downtown environment, in an area with railroad tracks, metal buildings, and out of radio triangle near the coast. The base station was installed at a trucking company headquarters in Santa Fe Springs, California. With a cooperation of city officials and utility companies in Santa Monica, Vernon, and Los Angeles, California, the electronic signposts have been installed on utility poles. With excellent cooperation from stations KFI, KNX, KPOL, and the Federal Communications Commission, we installed highly accurate automatic frequency controls for the AM phase lock system in the three stations. The daily operations of the six trucks are being monitored, and technical data are being acquired to determine what design changes are needed to make the cargo security system a most effective instrument in cargo crime prevention and detection. This test is proving that the hardware is feasible. In particular, the test has already produced the very first real-time location print out by AM phase lock technology. A formal field test will be undertaken as part of the overall program in a major city using a complete truck fleet. Fleet dispatcher and driver acceptance will be addressed, but this field test will primarily determine the value of the system for actually reducing cargo theft. A new security concept to reduce cargo crime being developed and tested by the National Institute for Law Enforcement and Criminal Justice on behalf of the motor carrier industry and for the ultimate benefit of the nation's consumers.