Evening star., 1933-02-15

by good authority that several hun
dred million dollars, or enough to pay
interest on, q large part of the out
standing railroad bonds. can be saved.
Consolidation Is so vital to the pub
:. lie welfare that, unless it is voluntarily
accomplished within a reasonable time.
the Government should compel it," 1t
| said.
| Secondly, abandonment of unprofit-
| able branch lines was urged, and their
replacement by other forms of trans
port
Something more than a negative
duty, it found, revolves upon regula-
| tory bodies to hasten replacing of los
| ing lines by alternative methods, such
as motor transport. which can render
adequate service on a profitable basis
in cases where rail transportation can
only operate at loss
The third recommendation was that
railroads should be permitted to own
and operate competing services, includ-
ing water lines, but regulatory juris-
diction should be extended to water
rates and practices in coastal, inter-
coastal and lake shipping to relieve
| commerce of present chaotic condi-
tions" In this connection, 1t was urged
that Congress should promptly clarity
its Intention on the long land short
haul clause Of the transportation act.
Next. the committee recommended
that Government assumption "of all or
! part of the costs of inefficient or COM
peting transport as a defense against
monopoly is no longer warranted and
should be abandoned. Govern
mental commercial operation of the
actual facilities of transportation, such
ac barge lines, should not be continued.
Skeptical Of Waterway.
Creation and maintenance. by Gov-
eminent, of competing methods of
transport, where the result is not Gas
in the case of the Panama Canal) to
provide more efficient service at q
lower cost. but only Gas in some inland
Waterways to maintain at the tax
payers expense, more costly and less
efficient service, can no longer be JUS
titled as defense against monopoly"
The projected ST. Lawrence waterway
was discussed with considerable skepti-
cism.
1T Is clear from our studies that
the peculiar type of lake bulk-carriers
Is far more efficient than any ocean
freighter and from this fact, the area
OF economy Is restricted practically to
savings in the cost of shipment. -
said the committee. But our studies
also show that. in no reasonable proba-
bility, could this minor saving be
enough to approximate even the carry
ing charges of the project.
Our waterway policy for the past
| 1ew years has averaged cost of about
sl0o. 600, 900 annually and tremendous
projects involving hundreds iof millions
are being considered. Our studies show
Suitlng from such spending. At
| time when the very stability of our
| system depends on the balancing of
Federal expenditures with revenue and
the sources OF taxation seem almost
dry, We find 1t difficult to Justify this
wasteful outpouring of hundreds of
| millions OF dollars for results so barren
OF economic returns"
Automotlve transportation. the COM
mitteemen decided. should . be put
| under such regulation as is necessary
ior public protection. 1t thould bear
It's fair burden of tax but only on a
basis OF compensation for public ex-
pendlture on its behalf. plus its share
OF the general tax load"
Auto Problem Difficult.
The automobile problem was de-
scribed as difficult, and the extraordi-
nary fexibility of the automotive car
r1er. both in movement and character
OF service, was stressed.
| With these advantages it has made
lnroadS into railroad business, and the
dlmcultles are only partly suggested by
this short recitation of complexities u
SAID the committee, pointing out that
| the problem thus presented has been
regarded as serious in every important
country and commissions similar to this
committee have convened in several of
them"
Our studies clearly indicate that in
some States" it reported, "automotive
Venicles do not bear their full burden
OF taxes. We think they should pay the
carrying charges and the cost of main
Cenance OF the highways they use and
also their share Of the general tax load
The Interstate Commerce Commission
recommends regulation Of interstate
busses and extension of their jurisdic-
! tlon 10 include interstate trucks.
Inc committee believes that the sit
uatlon requires general Federal juris-
olctlon OF motor transport. It recog-
nl2es that no such intimacy of reguIa- =
tlon as characteriZes railroad super-
vislcn can ever be extended to this
heid, but 1t is convinced that a broad
measure OF Federal and uniform State
control can and should be applied"
While describing wages and condi-
tions of labor beyond the scope of its
inquiry, the committee said "there
should be no heavier burdens on the
railroads in employing labor to operate
automobiles than on their competitors.
In the railroads (as in other indus
tries) rates. capitalization salaries and
wages must all follow changing eco
nomic conditions but none should be
sacrificed for the benefit of Others"
/ Obsolete Rules Found.