Evening star., 1939-06-18

of details, and also for education of the
arrangements, the employees and the
public in general. Projects of this ma
ture cannot be crammed down the
| throats of those who must carry them
out or conform to them. Legal compul-
sion can be used to bring recalcitrants
and stragglers into line, but not to drive
hostile majorities into action"
In submitting its last report to Con-
gress, the commission rerrained from
making any specific recommendations
for remedial transportation legislation,
except for Endorsement of the Splawn
Committee report, anticipating that va
rious proposals would be presented at
this session and that through consid-
Grafton would be given to stabilizing the
industry generally.
This issue, however, hailed as one Of
the most pressing with which the new
Congress would be confronted, has re-
ceived only casual treatment.
Wheeler Bills Criticized.
Representative Chandler, Democrat, of
Tennessee got widely approved meas
ure through the House designed to IA
cilitate reorganizations by permitting
lnancially-weakened railroads to work
out debt adjustment plant without re-
course to bankruptcy, provided IS per
cent of their creditors agreed. In the
Senate, where it had the opposition of
Senator Wheeler. Democrat of Mon
tana, chairman of the Interstate Com
merce Committee, the bill was amended
to apply only to the Baltimore & Ohio
and Lehigh Valley, which already have
reached such a basis of settlement
Granting that it finally becomes law,
the constitutionality of such legislation
already is under suspicion, one school of
thought holding that it would be sub
ject to attack in the courts as class leg
islation.
Two bills sponsored by Senator
Wheeler have passed the Senate and
are in House committees. One is his
own reorganization plan, which would
set up special five-man court to handle
reorganizations now passed upon by
Federal district courts, and in the reor-
ganizing process put insolvent carriers
through the wringer" by drastically re-
ducing capitalization. Bitter criticism
of this feature has come from rail
spokesmen.
Final Action Doubted.
The other bill would put domestic
water carriers under the I. C.. c.; set up
a new making rule which ignores
nf hot
carriers, and create a board of investi-
CATION" having two-fold duties: First,
a study of the relative economy and fit
ness of rail, highway and water carriers
with the view of determining the service
to which each is best adapted, and those
uses for which it should be discouraged,
and, second, the extent to which Fed
riers Reports to the President and Con-
gress would follow both inquiries.
On its face, the subsidy investigation
would be only so much lost motion, as
study launched about four years ago
by the co-ordinator of transportation in
response to the railroads complaint of
discrimination in favor of their compet-
itors now is in the final stages, with two
reports shortly due to be made public,
and two others due later in the year.
Even as skimpy as the rail legislative
bill of fare has been. however, doubt
is expressed as to whether any of it will
be completed before Congress is ready TO
call it day.
If it does, the commission reorganiza-
ton plan will have to be revamped ac-
cordingly, although the broad principles
remain unchanged
Work Co-Ordinated.
The general nature of the scheduled
Encouragement indicates an attempt to
proceed further with the assignment Of
duties on functional basis.
At the top of the five divisions which
supplant the seven now in operation is
the administrative division, headed by
Commissioner Eastman. Rate supervi-
regated in tWo and the tremendous VOL
ume of work in the motor carrier divi-
sion, created when the commission took
over bus and truck operations, will be
split up, with general authority under
the act remaining in the present division,
but other regulatory phases falling into
setups where corresponding functions are
exercised with regard to other carriers.
The vast network of standing commit
tees also goes out, with the activities OF
nine of the present eleven going to the
administrative division, and only those
on legislation and rules and reports re-
tanning their autonomy.
Procedural changes also are contem-
plated.
The arrangement, the commission be-
lieves, will serve to expedite materially
all regulatory operations