Evening star., 1932-01-10
Continued From First Page.)


transportation at the lowest possible
cost"
1t adds that modification of the
Clayton act to the extent indicated
would be a progressive step to meet
changed conditions, and without such
action coordination of rail and motor
transportation cannot be adequately
achieved"
The examiner proposes also that In
qulry be made into the contention OF
the railroads that the bus and truck
interests do not pay for highway con-
struction and maintenance in proper
tion to the use they make Of them-an
argument that Is vigorously disputed
by the motor industry
No legislation, regulation or taxa
tion Of motor vehicles operating for
hire in interstate commerce should be
imposed as an artificial barrier to hold
trafflc TO the rails; nor should the rail-
roads be forced to engage in competi-
ton with any other transportation
agency for traffic upon terms that are
unfair and inequitable," he says.
Form Of Subsidy.
"Tf motor-vehicle operators use
public highway, constructed and main
tanned by the general public, as an in
tegral part Of their business equipment,
without paying a charge commensurate
with their use OF it, they are subsidized
to the extent that such charge is not
commensurate. This record does not
establish whether or not such is the
case. 1t is of the utmost importance
though that the facts in respect to this
matter be ascertained, as the settle
ment Of this question Will be large
factor In fixing the place Of the motor
vehicle in the economy Of transporta-
tion and IN adjustment and co-ordina-
tlon OF rail and motor transportation"
Adequate determination of this mat
ter, the report says, requires a knowl-
edge OF the use made OF highways and
OF comparative payments of taxes and
fees by commercial and non-com-
mercial vehicle operators.
Proposes Two Glasses.
In the regulation of motor vehicles,
Flynn proposes that there be two
classes Of common carrier buses and
trucks set up-those operating over
regular routes or between fixed termini,
and those operating as anywhere-for-
hire carriers, the passenger vehicle
regulations, of course, excluding taxi
cabs and local sightseeing and school
buSses. For trucks, an additional
classification would be provided-con-
tract carriers-whose operations in
great part coincide with those Of the
-for-hire common carriers, in
that they are available 70 the general
public. but who in some cases serve
only limited group OF employers.
Common carriers except the any,
where-for- hire would be required to
obtain from the Interstate Commerce
Commission certificates of convenience
and necessity to operate, and all would
be required to conform to rates that
would be lust, reasonable and not
unjustly discriminatory, unduly pref
erential or unduly prejudicial"
Would Operate Under Permits.
Anywhere -for-hire common carriers
and contract carriers would operate
under permits from the commission
and, in the case of the latter, 1t is
proposed that the commission be en-
powered to fix minimum. but not max
lmum, rates 'on mileage or other
basis sufficient to cover the cost OF the
transportation service performed. but
not including any charge for any ac-
cessorial service.
1t is on this question of truck regu-
lation that the fire OF opponents Is
confidently expected to be centered,
in view Of their attitude In the past.
Contract truckers, they argue, which
constitute by far the majority of pub
lie haulers, may not legally be sub
Jected to regulatory control and, it is
added, any move along this line could
only reach common carriers, forcing
them to bear q discriminatory burden.
To this the report answers: Con-
Sidering the effect of unregulated con-
tract motor carriers engaged in inter-
state commerce on such commerce, they
are clothed with a public interest and
Congress has the power and the duty
to protect and insure the continuance,
permanency and steady operation of
transportation by all agencies of in
terstate commerce"
Pointing TO certain fields to which
legislation has been extended, the con-
clusion is drawn that "tf warehouse
men. stock yards. packers, boards of
trade and fire insurance are clothed
with public interest. 1t Is reasonable
to say that motor vehicles operating
for hire and using the highways which
belong to the public and are primarily
for the use OF the public as places Of
business are clothed with a public in
terest"
Question Of Regulation.
Flynn also disputes the contention
OF opponents that there Is no public
demand" for bus-truck regulation and
that the agitation springs generally
from railroad interests and common
carrier motor vehicle operators, recall
ing that State regulatory bodies have
asked for Interstate regulation in order
to bolster intrastate regulation; that
the National Association of Railroads
and Utilities Commissioners is on
record in favor Of Federal legislation
and that supporting letters and petit
tions have come from citizens.
Furthermore, he asserts public de-
mand should not be confused with
public need OF what is in the public
There was no public demand for
legislation providing for Federal regu-
lation OF railways until the abuses
by unbridled competition COM
PEELED such action" his report empha-
sizes. Certainly no one familiar with
the history and development of rail-
way transportation and particularly as
to its economic aspects, will deny that
the public and the railroad companies
themselves would have Jared better If
Federal regulation of railways had
come much earlier than 1t did"
The test should be-" he says, sis
there need in the public interest for
appropriate regulation OF motor We
hicles for hire in interstate commerce,
for the present and future prosperity
of all transportation agencies and the
assurance of dependable national
system?"
He adds that ut is better in the
interest of the public and of the trans
portation industry to have regulation
which forestalls, rather than regula-
ton which results because of condi-
tions giving rise TO unmistakable pub
lie demand"
Would Safeguard Rights.
While the regulation that Flynn pro-
poses probably would have the effect,
eventually, of limiting for-hire opera
STEAMSHIPS.