Evening star., 1940-02-28

WheeIer-Leo Bill
Coordination Of Rail and
Wuter Freight Rotes
Held Desirable
10 the Editor OF The Star:
The Wheeler-Lea bill, now in confer
ence between the Senate and House Of
Representatives, takes from the Maritime
Commission and gives to the Interstate
Commerce Commission the authority to
regulate domestic water carrier rates.
In some quarters misunderstanding has
arisen from this provision Of the bill.
1t appears that the misunderstanding
results from four general charges: /.
That regulation by the Interstate Com
merce Commission constitutes further
Government interference with business;
2, that regulation will tend to increase
rates; 3, that the Interstate Commerce
Commission Is railroad" body, and as
such will be "biased" in favor of the
railroads; and 4, that domestic ship
operators are opposed to the bill. These
charges can be cleared up in few words
as 1t seems that they were made without
knowledge Of all attending factors.
First, the Government, through the
Maritime Commission, already exercises
regulatory control over domestic water
rates, so the Wheeler-Lea bill is not new
legislation in the sense that the Govern
ment is moving in to do something that
1t has not been doing. No extension of
Government authority is involved. The
bill simply considers water and land
transportation as integral parts of a
national common carrier system which,
in the public interest, requires unified
regulation.
petitive to degree, and since each has
its place in our national economy, there
obviously is merit to the claim that the
rates of each should be co-ordinated with
the rates of the other so both will stand
In proper relation to each other. Every
one concerned, shippers, consumers, ship
owners, railroad security owners, en-
ployes. all profit by a fair and stable
rate structure, and the general public is
better served by the elimination of un-
economic and unfair practices.
Unified regulation was dominating
factor in transferring water rate regula-
ton from the Maritime Commission to
the Interstate Commerce Commission.
In addition to this, there was another
strong reason for the transfer. The
Maritime Commission is primarily con-
cerned with foreign trade shipping
which is subsidized while the Interstate
Commerce Commissions chief interest is
in maintaining adequate transportation
facilities at home, having no responsible
ity for foreign trade transportation. The
Maritime Commission has gigantic task
In promoting and developing a foreign
trade fleet, mapping out routes, building
new ships, granting subsidies and. possi-
bly,, operating Government owned
lines Domestic rate regulation is an
other large task, one which, in compare
son with the Interstate Commerce Com
mission, the Maritime Commission is not
geared to undertake The whole issue
reduces itself to that of choosing which
Of two Government agencies is to legu-
late domestic water rates. It is not q
question of deciding whether we are to
have water rate regulation, for we al
ready have it.
Second, the general charge that Inter-
state Commerce Commission regulation
will of itself tend to increase domestic
water rates has one Of two implications:
either the commission will unjustly allow
unreasonable increases, or the present
rate level is too low to sustain the In.
dustry as an efficient part of our trans
portation system. The judicial integrity
Of the commission should not be sub
jected to general insinuations. It's sin
certify and integrity have kept the sup
port of the public for more than so years.
On the other hand, as present rates will
not permit the replacement of older tom
mage as 1t becomes obsolete, who in good
faith can object to an increase sufficient
to make necessary requirements to as
sure continued operation of a vital pub
lie service?
Third, the broad charge that the Inter-
state Commerce Commission Is a rail-
road" body, and therefore biased" in
favor Of railroads, has little merit. The
commission is composed Of honest and
capable public servants, and its record
warrants the assumption that 1t will
continue to act In the public interest and
as directed by Congress. Its standard
Of fair and impartial administration is
in keeping with that of our courts, and
It's acts in administration of the law are
renewable by the courts.
Fourth, domestic ship owners, operat-
ing the great preponderance of tonnage
in strictly common carrier service, have
urged this legislation for many years.
have represented them at congressional
hearings, and their support is a matter
Of record. Marine interests opposing the
Wheeler-Lea bill are affected little, If
any, by its provisions, except inland
waterways. EDWARD p. FARLEY.