Evening star., 1932-01-05
BUS REGULATIONS
URGED IN REPORT.
I.C. C. Told Stability of Rates
and Relations Are Hit by
Lack of Control.

mission by Leo J. Flynn, attorney-ex-
arniner based on a nationwide survey
Of rail, highway and water carriers.
Declaring that "the tremendous and
unregulated expansion of motor vehicle
transportation is undermining the sta
bility Of rate structures and relation
ships aud is. not in the interest Of de-
pendable national transportation" the
report saws that "the national trans
portation machine cannot function with
progressive efficiency, part regulated,
part unregulated. Coordination OF
TRANSPORTATION agencies cannot reach Its
economic possibilities under this an
omalous condition"
Coupled with the suggestions for
regulating highway carriers Is the pro
posal that railroads which alreaoy are
going into the motor field be speclhcaIIy
authorized to engage in this form OF
TRANSFORMATION, and that the clayton
anti-frust act be amended to allow
them to take over existing motor INES
whenever such action is IN the interest
of economy anG efficiency Of operation
and not adverse to the pubic interest,"
Limitation on Rights.
With regard to its recommendations,
however. the report emphasizes that
Legislation and regulation should not
be with a view to preserving ana pro-
tecting long existent forms OF trans
portation by sitting or restricting new
forms Of transportation which may pe
better equipped to perform certain
transportation functions
- odds dig entitled to
the best transportation service. No
carrier by rail, water. motor vehicle or
air has a vested right in the transpor-
tation Of a single passenger or pound OF
freight"
The report enbodies the results Of an
Investigation ordered late in 1880 by
the Interstate Commerce Commission,
covering the general matter OF the CO.
ordination of rail and water transpor-
tation with motor transportation, put
Is devoted almost entirely to the ralI-
motor phase of the study.
Hearings were held in II cities, and
testimony taken by Commissioner Ezra
Brainerd, jr., who has just retired from
the Craftsmanship Of the commission,
and Examiner Flynn. There were ESQ
witnesses heard, these including leaders
in all groups In any way having an
interest in transportation.
Findings to Be Argued.
The findings which are proposed for
adoption by the commission will be
argued on briefs and orally by parties
to the proceeding, after which the COM
mission will promulgate its own report
on the subject for action by Congress.
The commission set February for
filing briefs and March 1-3 for the
argument.
A vigorous fight is in prospect on the
question Of truck regulation, and par
ticularly that which would include rate
supervision, as opponents have con-
tended that contract trucks, which con-
stitute the majority Of the public haul
ers, could not legally be subjected to
regulatory control, and that this would
throw the whole burden on the COM
mon carriers. Flynn holds, however,
that regulation of the contract carriers
is legal.
In all there are SO recommendations
made by the examiner.
AS a prerequisite to co-ordinated OPP
Grafton he says that Congress should
declare that the business of operating
motor vehicles for hire in interstate
commerce on the public highways Is
affected with public interest and Is so
interrelated with transportation by
other agencies that it must be consid-
cred a part Of the national transpor-
tation system"
For the purpose of regulation there
would be two classes Of common car
rier buses and trucks set up-those
operating over regular routes or between
fixed termini, and those operating as
anywhere-for-hire carriers. (TaXicabS,
local sightseeing and school BUSES
would be eXcluded) For the carryage
Of property a separate classification
would be provided for contract car
riers whose operations in great part
are the same as those Of the anywhere
for-hire common carriers, In that they
are available to the general public. but
who in some cases confine their services
TO limited group of employers.
Common Carrier Rule.
For common carriers Of persons or
property Except the anywhere-for- hire
carriers) this regulation is proposed:
% Certificates of convenience and
necessity; % liability insurance or in
demnity bond or satisfactory financial
responsibility that will assure adequate
protection for the responsibility as
sumed.
All common carriers would be sub
tected to the proviso that their inter
state fares and charges "be just, rea-
sonable and not unjustly discriminatory,
unduly preferential or unduly prejudi-
cial" They would also be required to
file and post their tariffs.
Contract carriers would be required
TO obtain a permit from the Interstate
Commerce Commission to operate, and
for these the commission would be en-
powered to ix minimum but not maxi
mum rates, "or a mileage or other
basis sufficient to cover the cost of the
Hro,,cr,rf-%a caryiCe NnTfOrTr ed - Thngn
rates would not include compensation
for any acceSsorial service. The exam
liner also recommends that reasonable
latitude should be permitted to pre-
scribe different rates for different sec
tions of the country"
The anywhere for hire common car
rier also would be required to obtain a
permit to operate from the commission.
For both contract carriers and any
where-for-hire common carriers it is
urged that any regulation include pro-
vision for liability insurance or indem-
nifty bond TO safeguard the public.
On the subject Of less than carload
shipments of freight where motor truck
competition is particularly severe the
report proposes that the railroads con-
slider whether economy and efficiency
could be promoted by handling all such
business through the Railway Express
agency, which Is Lne animate OF h4i
railroads (but the Southern) for trans
porting express.
Use of Express.
This less than carload freight, it Is
pointed out, requires use of facilities
out Of proportion to its volume, and
the idea is advanced that hauling 1t
entirely by express would be more sat-
isfactory in every respect.
The examiner recommends also that
motor vehicle common carriers be re-
Quired to handle mail, as are railroads
The report holds that the country
now has a surplus Of transportation,
and argues for limitation.
Whether public convenience and
necessity require transportation service
by motor bus or motor trucks between
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