Evening star., 1931-12-10
RAIL PROBE PLEA
PASSES COMMITTEE
Couzens' Resolution Asking
Joint Inquiry Ready
for Senate.

Moving promptly, the Senate Inter-
state Commerce Committee today or
dered favorable report on the Couzens
resolution to authorize broad investi-
CATION by joint congressional commit
tee of the problem confronting the
country's railroads.
The joint committee, which would be
/ set up by the resolution would be In
structed to study the railroad situation
with the particular view to determining
to what extent the Federal Government
can aid during the present emergency.
This act would be designed to pre-
serve continuous and efficient trans
portation service, alleviate the financial
difficulties In which many such car
riers are involved, relieve the distress
OF unemployed railroad workers and
prevent further unemployment among
such workers.
Goes Back to Senate.
The resolution goes back to the Sem
ate for action with the Endorsement
of the committee Since 1t calls for 4
joint inquiry. 1t must pass the House
also. 1t was introduced in the Senate
yesterday by Senator Couzens of Mich
lgan, chairman Of the Interstate Com
merce Committee.
Earlier In the day Congress was
asked by the Interstate Commerce Com
mission to investigate the Complaint Of
the railroads that rival TRANSFORMATION
agencies cutting into their revenues are
the beneflciaries of Government aid
tnat amounts, In effect, to subsidies.
Taklng cogniZance of the repeated
charges OF the carriers that the assist
ance given motor, water and air lines
either directly or indirectly, sets up
unfair competition, the Commission ia
It's annual report, recommended that
congress go into the matter, to decide
II any action Is necessary to correct
TINS situation, and what form 1t should
take.
The report deals extensively with the
being diverted from the railroads
bringing into the picture not only the
broadening operations of highway and
water carriers, but also of another i'm
portant factor in the field of trans
portation-the pipe lines.
Forecasts Truck Regulation.
In this connection, the contention in
favor of regulation of these agencies in
tne interest OF the public is recalled,
put the Commission for the present,
rests on its previous declaration In
favor OF regulatory legislation for buses,
lt however forecasts recommendations
WIN regards to trucks in its forth
coming report on motor-rail co-ordina-
ZION, and suggests that Congress mighs
look into the question of port-to-port
Istes OF the water carriers where, 1t
Is sslo, there Is an indication toward
purely destructive competition"
The commission goes exhaustiyely
also into the question of the financial
condltlon OF the railroads, discussing
It's recent denial of the is per cent
freight rate increase sought by the car
rlers, and proposing modified rule of
rate regulation recognizing that because
earnings will inevitably fall below the
standard level in times of business de-
preston, they may properly be permit
perity"
This would entail also repeal of the
recapture provision, recommended last
year by the commission, which terms IT
nenectiVe, and the substitution of q
stable rate base.
Sweeping Changes Asked.
Regulation of holding companies also
was urged by the report, which listed |
IN all 19 recommendations. embodying
sweeping changes in the interstate |
commerce act. -
Taking up in order the scope Of the
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