Evening star., 1931-12-10
TRAIL PROBE PLEA
PASSES COMMITTEE
Couzens' Resolution Asking
Joint Inquiry Ready
for Senate.
Continued From First Page.)

Continued From First Page.)
competition furnished the railroads, as
shown during the rate hearing. the
commission pointed first to water car
rlers, which, it was said handle sub
stantial portion Of the countrys traffic. u
Intercoastal traffic through the Pam
anna Canal grew from 1,372,000 long
tons in 1921 to 10,49o,o 900 long tons in
1880.
Traffic along the coasts on the Great
Lakes, important rivers and the New
YORK State Barge Canal jumped from
100 ,967 600 net tons in 1920 to 305 ,127, =
900 in 1890.
The water lines, it is pointed out,
hanole not only port t-to-port business,
but, In connection with railroads, reach
hundreds Of miles inland for traffic.
:, An enormous expansion" in pipe
lines Is reported, the investment in
crude OIL lines now being put at more
tnan $4,000, 100000. It is amplified
also that another development in this
INDUSTRY Is the extension of pipe line
transportation beyond crude petroleum
to certain refined products, there now
being about $500 miles of gasoline lines
In existence. Another phase is in the
neld OF natural gas, where a network
OF about $4,000 miles is functioning.
Big Loss Is Revealed.
Between gas and oil the railroads
nave had their coal tonnage severely
curtailed also. the report says.
However. competition of the bus and
truck is called the most formidable"
confronting the railroads, with the lat
ter considered the more serious. carving
nf
load freight moving less than 100 miles
from the large distributing centers of
the country and participating heavily
In the long-haul movement
The menace from the air is not vet
serious, although the commission saws
Its possibilities are great, not only for
passenger carrying but also in handling
express and light freight.
In connection with this conopeti-
ton, the report says, two contentious are
advanced. One is that these competing
transportation agencies, more particu-
larly the motor, water, and air car
riers, are in effect subsidized by the
Government, and that to the extent of
such subsidy their competition is un-
fair. The other is that these trans
portation agencies should be subjected
to greater degree Of public regulation
D.
lie safety and convenience, the elimi-
nation OF purely wasteful and destruc-
tive competition, stability in rates. and
the proper maintenance and develop
ment OF the national transportation
system as a whole.
Use of Roads Stressed.
The claim that subsidy exists, so far
as the motor carriers are concerned
rests chiefly on the great public in
Vestment, by both the Federal and
State governments, in highways and
roads. 1t Is asserted that the motor
carriers do not contribute through spec
cial taxation their fair share to the
support Of this investment. SO that part
OF the burden which they should carry
is borne by other users of the high
ways or by general taxation. In the
case OF water carriers, a similar claim
Is made that they enjoy the benefit
OF huge public investment, including
the Panama Canal, the New York State
Barge Canal, other waterways, and to-
some extent docks and terminals, with.
out contributing their fair share to its
support. With respect to the Inland
Waterways Corporation, owned by the.
Federal Government and operating
barge lines on the Mississippi and
Warrior Rivers, it is also pointed out
that the Government bears the burden
of any deficit which 1t may incur In
operation, and that its facilities are
exempt from all taxation. In the case
OF the air carriers, the claim that a
subsidy exists is based on the con-
tracts for the carriage Of the mails.
In delving into railroad finances, the
commission says that the net railway
operating income this year will be "far
below the level contemplated in >tne
"fair return" section OF the interstate
commerce act.
The recapture provision which 1t Is
proposed to knock out was designed by
setting up contingent fund out of
orle-hslf OF the earnings above per
cent to provide advances for weak car
ricrst but the report repeats that 1t has
failed. Most Of the payments to It have
been under protest, and only a few
thousands could be used for loans. The
fund now totals $13,110,450.
; The new rate base it Is proposed to
set up would get away from the urS
stable factors Of fair value" and be
just to the carriers when considered In
connection with such fair return as
nxed by the commission, the report
says.
Other recommendations In the re-
port favored regulation of freight for
warding agencies, refrigerator car COM
panies and attorneys fees in railway
mail pay cases, reference being made
to those settled on contingent basis.
In an effort to tighten the labors of
the commissioners, Congress swas asked
to amend the law so authority can be
delegated to individual commissioners
and employees. The entire commission.
or at least three members must now
consider every case decided, although.
1t Is explained, many matters could be
he rldleG hIr nYcn,lti.ta -