Evening star., 1938-12-24
Railroads
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organize and fight the repeal. He
said special interests, particularly
Chicago. have driven their wedge
into the study" Repeal Of the clause
might result In lowered rates on
trafiic to Chicago because OF water
carrier competition.)
Senator Norris said, 1T seems to
me to be an injustice on the face Of
1t to charge more for a short haul
than for long haul that might in
clude a short haul"
The Nebraskan also said he would
give careful study to the committees
proposal for special court to han
die railroad reorganizations. but
that, offhand, he was inclined to op-
pose it.
He added that he had the same
feeling about the committed pro-
poSal to create Federal transporta-
ton board to have jurisdiction over
all modes OF transportation. He con-
ceded, however. that such a board
might be necessary to solve railroad
problems, and said he might feel
differently after studying the pro-
| posal.
The committee proposed that the
Interstate Commerce Commission be
given a revised authority to make
rates on impartial terms for all
kinds Of transportation and that a
new independent agency be given
other regulatory powers.
At present the railroads, water
ways, trucks, buses and airplanes
are regulated by various Govern
ment agencies.
Senator Wheeler said he would
withhold judgment on most of the
recommendations until he had had
additional time to study them and
had conferred with the President.
Parallels Road Objectives.
The Montanan. who has contend
ed the most immediate need of the
railroads is reduction of capital
structures, said that, nevertheless.
he intended to lean backward in
carrying forward any program for
rehabilitation of the railroads which
the President may favor"
Most of the committees recon-
mendations parallel closely long
time legislative objectives of the AS
sociation Of American Railroads and
proposals which have been made by
the I. c c. The group proposed a
modification Of existing restrictions
on Reconstruction Finance Corp.
loans to railroads: that reduced
Government freight rates be elm
mated; that the Government bear
the cost of embarrassing elimina-
tions and help pay for work made
necessary by Federal projects: that
unjust" State and local taxes be re-
pealed, and that the Government
get out OF the inland waterway busi-
ness, in addition to establishing a
toll system for commercial use of
certain waterways.
The committee also proposed that
the Government leave to the initia-
tive Of the railroads the matter of
consultations, subject to approval
OF the proposed new transportation
board.
John j. Pelley, president of the
Association Of American Railroads,
said the report appeared to be
most comprehensive and construc-
tive that has ever been made as to
the transportation problem and pro.
posals for its solution"
Just Another Smoke Screen"
Less favorable reaction came from
Alexander F. Whitney, president of
the Brotherhood of Railroad Train
men, who said in Cleveland the re-
port was "just another smoke
screen to tickle the chins of the
public, give the railroads little re-
lief and possibly to take something
from the public as we'll as employees. "
He said the committees proposal
that consultations be worked out by
individual railroads was so broad
and nebulous that mo man who
represents labor can concur in 1t
unless there Is some provision for
protection of labor that would be
displaced"
Railroad stocks and bonds, con-
tinuing an advance which began
Thursday, moved ahead both before
and Immediately after publication
of a summary of the report.
The summary made public by the
White House was signed by M. w.
Clement. president of the Pennsyl-
vania; Carl R. Gray, vice chairman
Of the board of Union Pacific;
George n. Harrison, chairman of
the RaiKsAy Labor Executives Asso-
citation; B. M. Jewell, head Of the
Railroad Employees Department Of