Evening star., 1940-03-23
The Political Mill
Long Fight for Central Regulation
Of Transportation Neurs Success

the low prices paid for the tonnage.
Established shipping lines, which
had established regular and depend
able services, were compelled to meet
rates offered by these new COM
petitors. In addition, transcon-
tinental railroads we're permitted
to lower rates. This furnished an
additional competitive factor which
hit still further the established Water
carrier lines.
Today, it is pointed out, as a re-
suit of these practices, 9905 per cent
of the entire domestic fleet engaged
in common carrier service Is more
than 81 years of age, with no ship
operator in position to make needed
requirements. The contention is
now made that, in view of these cir
cumstances. the regulation of water
carriers by the same regulatory body
that deals with land forms of trans
portation will be of real value to the
ship operators, as we'll as to railroads
and motor truck companies.
If the domestic fleet of water car
riers is permitted to become obsolete,
the ship operators will have to make
requirements or go out of business.
If they 60 out of business the public,
along with the merchants and those
who have protested against the
Wheeler-Lea bill will be less we'll
served. The ship operators are no
different from any one else engaged
in business. They must be able to
show adequate earning records to
obtain new capital to build new
ships. If they cannot and failures
are general, either the Government
will have to grant subsidies or
operate these domestic shipping
lines itself. If the Government goes
into the business it means private
enterprise will be destroyed and the
cost of maintaining the service will
be met through taxation, which will
fall on everyone for the benefit of
the few.
Proper Relation of Rates.
The argument has been made that
the regulation of water rates by the
Interstate Commerce Commission
will automatically increase rates.
But this is by no means necessarily
so. Rail and water rates will, it is
believed, be fixed in proper relation
to each other, with the elimination
of unfair competition. In addition.
such regulation will protect the small
manufacturer and the small mer-
chant against the large industrial
lists. He will get the same advantage
and the same rate as the big
shipper.
Secretaries Woodring and Wallace
took the position that the Wheeler
Lea bill, by placing the water car
riers under the regulation Of the
I. C. c., would bring about equaliza-
ton of rates and that eventually
this would kill off the water carriers.
President Roosevelt, when he came
to the support of Senator Wheeler
of Montana and Representative Lea
of California, sponsors of the bill,
recently took the opposite view. In
all the life of the Interstate Com
merce Commission no charges OF
unfairness or discrimination have
been sustained against the commits
sion. There seems no good reason to
believe now that the commission
would discriminate in favor OF the
railroads against the water carriers.
The Wheeler-Lea bill is not re-
garded by the carriers as panacea
for the ills which have beset them.
1t is, however, regarded as certainly
a step in the right direction. While
the provision which places water
carriers under I. c. c. regulation
has caused the greatest interest and
controversy, the bill also provides
against territorial discrimination in
the matter of rates 1t also provides
for the repeal of the Land Grant
Act under which the railroads are
compelled to carry Government
freight at reduced rates, and for a
new board of three. to study the
general transportation situation, the
value of the various agencies and the