Evening star., 1938-12-23
Transportation
Board Asked BY
Rai|sConlnlittee
Revision of |. c. C.'s
Rote-Moking Rules
Also Proposed

BY the Associated Press.
The Presidents Special Commit
tee on Railroads recommended to-
day creation of transportation
board to be charged with RESPONSE
bility for regulating all modes of
transportation.
The committee, composed of three
representatives each from railroad
management and labor, proposed 4
comprehensive pfogram for imme-
diate rehabilitation of the carriers.
The committee urged revision of
the rate-making rules of the Inter-
state Commerce Commission and
substitution of a new rule "applica-
BILE to all modes of transportation. :"
Special Court Suggested.
Repeal of the so-called long -and-
short haul clause, which prevents
railroads from charging less for a
long haul than for short haul over
the same route was also proposed.
The. committee suggested that a
court be established to have exclu-
sive jurisdiction over matters con-
nected with railroad reorganizations,
relieving the Interstate Commerce
Commission of all responsibility in
that field.
The committee also recommended
that the I. C. c. be relieved of re-
sponsibility for prescribing a gen.
eral plan of consolidation for rail-
roads, thereby restoring to the
carriers all initiative, but requiring
approval by the Transportation
Board of any proposed consolida-
ton
Low Traffic Volume Factor.
The committee has been steadily
at work since special mediation
board turned down proposal by
the carriers that employees take
Is per cent wage cut. The cut had
been suggested as a way to i'm
prove the lines finances, but with
that possibility gone other avenues
were explored.
A White House summary of the
report touched particularly on COM
petition the railroads must combat.
It said, in part:
The major factor in the present
distressed condition of the railroads
is the low volume of their traffic. A
contributing factor is the depressed
character of many of their rates.
"Competitive modes of transpor-
tation are partially responsible for
the former and almost wholly re-
sponsible for the latter. To the
extent that the inroads made upon
railroad traffic and reve >>les by
other modes of transportation are
not due to natural advantages which
the latter possess, but are at
tributable to artificial advantages
accruing to their competitors as a
result of governmental favoritism
in any respect, the railroads have
a right to object Such favoritism
now exists in pronounced degree in
the important matters of regula-
ton. taxation and subsidies.
Temporary Measures Needed.
while substantial relief should
come with improvement in general
business conditions, the removal of
these important contributing causes
is essential to the healthful func-
tioning of the transportation indus
try. Certain temporary measures
are necessary and should be adopted,
but the only way in which anything
of lasting benefit may be accom-
plished is by equalizing the situa-
ton OF all modes of transportation
with respect to the three important
matters mentioned"
The committee said the interest
Of the public as we'll as those of the
employees involved should be consid-
cred in connection with any pro-
posal for consolidation.