Evening star., 1939-07-09
Broad j. ). Control
Is Provided in New
Transportation Bill
Legislation Written for
Congress by House
Subcommittee
By the Associated Press.

by tHc hSSOCldltO fTeSS.
Legislation for broad Federal con-
troll of the Nations transportation
agencies was prepared for Congress
yesterday by House interstate COM
merce subcommittee.
Chairman Lea announced the
committee had rewritten the Senate
approved Wheeler Truman bill codi-
flying the Interstate Commerce Act
but had retained it's principle of
bringing water carriers in addition
to railroads and highway carriers
under regulation of the Interstate
Commerce Commission.
This bill does not attempt to pro-
vide any magical remedy for our
transportation problems" Repre-
sentative Lea said in a statement.
This legislation is, at least, a de-
cided step toward better regulation
on which, to large degree, the sue
cess OF our transportation system is
dependent"
House leaders indicated they would
support the new legislation. Presi-
dent Roosevelt had asked Congress
TO study the railroad problem care
fully and make remedial recon-
mendations.
The bill contains some provisions
recommended by the I. C. c.. some
made by a committee of six ap-
pointed by the President and many
recommendations by Representative
Lea.
HighspOts Of Measure.
Here are some of the bills high
spots:
l. The I. c. C. would be given gen.
eral regulatory authority. with some
exceptions, over interstate water
transportation, including itnercoast-
al and coastwise traffic, as we'll as
traff1c on the inland waters and
Great Lakes.
2. The /. c. c. would be directed
to investigate regional freight rate
dlf1erentlalS, against which South
ern members of Congress have COM
planned, and make any necessary
change in the rate structure.
3. The /. c. c. would have author
lty to fix both maximum and min
imum rates for rail and water COM
mon carriers and TO establish diff
ferentlals between the two types
4. While leaving the present mem
hi of
members would have authority to
reorganize their work and to estab-
hsh an appeals board
5. Carriers, rather than the ]. c.
c., would be permitted to pro-
pose consultations and pool their
traffic.
8. The Reconstruction Finance
Corp. would be empowered to make
loans to railroads for reorganiza-
tlons, consultations. construction or
maintenance when it finds that pri-
vate financing is not available.
Water Carrier Exceptions.
Mr.. Lea said the legislation con-
tains important exceptions TO l. c. C.
control over water carriers. One
would be transportation by contract
carriers where. by the nature of the
commodity, requirement of special
equipment Or shipment in bulk.
there is no major competition with
common rail. motor or water carriers.
Carriers subject to the intercoastal
shipping law of 1888, Mr.. Lea said
would be affected only by transfer
OF their obligations from the Mari
time Commission to the I. c. C.
He also said in his statement ex-
planning the bill:
An unqualified exemption is pro-
vided for contract carriers by water
of commodities in bulk in vessels
used for the carrying of not more
than three such commodities at any
given time. A further eXemp-
ton is made of moroccan going
vessels transporting. as contract
carriers, commodities in bulk on the
Great Lakes
These new regulations would not
apply, it was explained, within the
limits of single harbor or between
places in contiguous harbors when
such transportation is not part of a
continuous through movement under
a common control.