Evening star., 1934-11-13
CUT IN TRANSPORT
COSTS IS SOUGHT
Eastman Urges Rail, Air,
Water and Highway
Unity of Action.

Reduction Of transportation costs
by co-ordinating rail, highway, water
and air carriers was advocated before
the National Association of Railroad
and Utility Commissioners today by
Joseph B. Eastman, Federal CO.
ordinator of transportation.
Surveys have shown 'innumerable
ways" in which economies could be
effected through reducing duplication,
he added. Countrywide tranSporta-
ton systems should succeed existing
separate groupings, he said. but did
not name possible organization plans.
Rate Structures Talked.
Asserting he would again propose
Federal regulation of all transporta-
ton units to the next Congress, East
man said railroad rate structures must
be revised because of competition de-
veloped since basic schedules we're
approved.
Railroads will recover, he said, prin-
cipally from long haul traffic, for while
trucks handle from 10 to IL per cent
Of the country's ton mileage, they
employ more men than the railroads
and costs are necessarily higher.
AS developments of the near future,
Eastman predicted even greater i'm
provements in comfort and speed in
rail passenger service, lighter freight
cars with uniform sectional bodies
interchangeable with trucks, and the
use of both in one system. u
Frank McNinch Speaks.
The association yesterday afternoon
heard Frank r. McNinch. chairman
of the Federal Power Commission,
vigorously demand control of holding
companies in the power field; charge
that the power interests were trying
to create discord between State and
Federal regulatory groups by spread
ing the impression the Power Com
mission is seeking to usurp the pre-
negatives of State agencies; pledge
for the Power Commission non-inter-
ference in the States, and bespeaking
in return wholehearted cooperation
in the public interest.
McNinch declared holding COM
panies are sucking the life blood out
of thousands of operating companies"
and that for his paT he favors a
flat prohibition against any holding
company taking profit out of an op-
Grating company" =
Explaining that the matter of hold
ing, company control Is now under
study /by the group he heads the
Power Commission chairman gave as
his belief that the general type OF
legislation needed would be Federal
statute to require these concerns op-
Grating in interstate commerce TO
make all their records available 1or
the benefit of the States which could
then apply their own regulatory
measures.
q. S. Can Assist.
This same principle is proposed
in a report of the associations Com
mittee on Corporate Relations, which
saws: There has been a growing
tendency for increased Federal regu-
lation If utilities within the last few
wears. While we believe that each
State is in q position so to treat the
holding company situation as to pre-
vent interference with regulation, 1t
also seems to us that ethe Federal
Government can greatly add by re-
ouiring certain holding companies to
produce facts which State. regulatory
bodies may not be able to obtain"
This committee, however, at vari-
ance with McNinch's views. has q
good word to say for some holding
concerns, the report setting out that
"the dangerous and destructive
aspects of such companies in general
are not present in all holding COM
pany groups"
Chairman McNinch also described
the power resources and sisctric rate
survey, and the study of power dis