Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-25
RAIL COMMISSION
FACES BIG ISSUES
Spirited Fight Expected on
Merger Plan and Bus
Control.

with the next move in the freigh!
rate case now up to the railroads, the
transportation world is awaiting action
by the Interstate Commerce Commits
sion on two more important issues,
consolidation and bus-truck regulation
both Of which are due TO be productive
OF fireworks in the next few months.
On consolidation the commission
must act on the petition Of the East
crn carriers to align themselves into
four great systems, with present indi-
cations being that Congress will seek
TO have a say on the matter. although
under existing legislation the matter is
one entirely within the province Of the
commission itself
On the bus-truck problem Congress
IS certain to have a say, for here the
commission can act only in an ad-
visory capacity.
Those familiar with commission pro-
cedure believe it will be after the first
of. the year before the consolidation
plan will be taken up.
Hearing Is Required.
Under the law hearing must be held
on the application of the carriers, who
have asked the commission TO amend
their own plan calling for five-system
set-up and accept instead the four-sys-
tenn principle.
Because of the work that necessarily
will be required in lining up witnesses
for this hearing, 1t is held certain that
at least 80 days and maybe more will
be allowed from the time the notifica-
ton goes out until the case gets I'M
der way.
The Commission itself must notify
the governors of the States traversed
by the lines affected, and it is up to
the executives to see that other inter-
ested parties are advised.
When the hearing finally gets under
way, a vigorous tug of war is in pros
pct.
railroad labor. already badly hit by
the slackening Of business, and fear
lul thRt mergers would entail further
unemployment. has served notice that
It intends to be heard and is expected
to WELD q potent influence
COuzens Serves Notice.
Again, converting of Congress is sure
70 see an effort to enact legislation
TO give that body final say on con-
solicitation. Notice to this effect has
been served by Senator Couzens, chair
man of the Senate Interstate Com
merce Committee, where like legisla-
Congress, concurrently with o move OF
the same nature in the House.
Other discordant elements are ex-
pected to arise in proposal Of such
wide scope, and there also Is the fact
that the proposition, while defended
by the carriers as best for public in
terest, runs counter to commission
views in several important respects.
In this latter connection, however, it
was noted that in the rate decision
this last week the commission had a
good word to say for consolidation ma
tionally, though warning that Coop
Grafton, which Is essential to railroad
salvation" should not be "subordinated
to the consolidation program"
The commission has been graphing
with the bus-truck problem since a
year ago when it launched an inquiry
under the direction of Chairman Ezra
Brainerd, jr, and Attorney Examiner
Leo j. Flynn to effect scheme OF
motor rail coordination. The findings
are to be made public soon, Chairman
Brainerd last week told the National
Association of Railroad and Utilities
Commissioners in session in Richmond.
Program Is Prepared.
OndlTndn 1E6H16TQ SdlU Zig CON1AtAllo-
sion would make such "recommenda-
tions for additional legislation as it
may seem desirable in public welfare. .
stirring interest as to the possible Sug-
gestion that would be made for regulat-
ing trucks, a highly controversial issue.
Previously the commission has held
there was no call to regulate trucks
and opponents OF regulation contend
that it Is not feasible now. inasmuch
IT. a. R,o oh nI
are common carriers, operating be-
tween fixed termini, which constitute
only a small percentage of the We
hicleS in service.
Most of the trucking is by contract
haulers, operating wherever they can
find load Opponents say there Is
no way that Federal law. can reach
these, even though they are engaged in
interstate commerce, and that to i'm
pose regulation on the. common car
riers subIecting them to "frozen-rate"
structure and other restrictions would
simply drive them out of business or
cause them to enter the contract held.
They also declare operating costs
would be raised by regulation, depriv-
ing the public Of cheap transportation.
Their contention is that State regula-
ton is suff1cient.
On the contrary. there is general
agreement that interstate buses, which
universally operate on fixed schedules,
might well be put under Federal law
in the interest of the public. A move
in this direction failed in the last Con-
gress.
Rail Motor Tariffs Loom.
A recommendation that would not
occasion surprise would be for a rate
Set-up providing joint rail-motor tariffs,
TO give railroads the benefit of truck
ing for short hauls. Leading roads
have argued for such a plan. Whatever
is recommended, however, will come
in for thorough airing in Congress
Meanwhile, the commission will be
forced to take up the rate question
again when the railroads act on the
proposal TO set up pool on some sur
charges offered as a substitute for the
Is per cent horizontal increase which
was denied.
Under procedure decided upon by the
Association of Railway Executives, a
committee will meet with the commits
sion to threSh out this matter and de-
eide a course of action which must be
taken by December l. 1t was no;
known yesterday at the headquarters OF
the association here just when this con-
ference would be sought.
TORCH SLAYER LOVER
CEMTENnEN E0D Aide