The future outlook., 1942-12-05
SATURDAY. DECEMBER s, 1912
- pIRIIC TRANSPORTATION.

II the Governments fight against
initiation is to be successful. II IL
necessary that control ngalnst rising
prices be applied AS vigorously "a
transportation and public utility
rates as to other prices, David Gins
burg, general counsel to the oPA'
said before the Interstate Commerce
Commission.
Mr.. Gnsburg, representing Dire%'
tor OF Economic Sterilization James
f.. Byrnes as well as oPA. appeared
specIflcally In henrlng over n pc
tItion for nm increase In railroad
rates, fares and charges In Texas
but made plain to the ICC that he
was discussing principles which he
believe would be applicable to all
rate cases coming before II.
The OPA general counsel's state
ment on the necessity OF vigorously
applying the Price Conrtol Act OF Oc-
tober 2, 1912, to transportation ana
utility rates follows In part:
1T ls not too much to say that the
most urgent economic problem now
facing the milton is how 10 increase
war production without setting off
An uncomfortable spiral OF initiation
which would inevitably undermine
the war effort and jeopardlze the
safe return 10 peace. BY the Act of
October .. the Congress has attempt.
cd 10 avoid these consequences by
providing for general stabillxation Of
prices, wages and salaries at the lev
els prevailing on September II. 1gi2.
The Congress recognized OF course,
the necessity for some adjustments-
those necessary. to correct gross In
equities or TO MD In the effective
prosecution OF the war
III this stnbiIzatlon program Is to
be successful, the authority TO make
upward adjustments must I've excr-
cised spnrngly and only In those
cases where II Is clearly necessary
to correst those InequitIes or 10 per.
nit the continuance of essential sery.
Ices.
If the program ls To bc success.
ful, II is also necessary TINT 1t hc
supplied as vigorously with respect
TO transportation and public utility
rates ms with respect 10 other prices
affecting the cost OF living"
Mr.. Ginsburg asserted that It was
matter OF general knowledge that
railroad earnings were now so gen
orally favorable as TO make Il ex-
trcmcly unlikely that rate increases
would he necessary to insure ade-
qunic transportation service. adding
that In considering adjustments Of
individual rates, II was necessary Ia
remember that what might be undue
discrimination IN normal times was
. i''
when counteryaillng considerations OF
+, national policy we're Mt stake.
Earlier, OPA's general counsel had
cited the instruction OF President
l,ooseeylt in the Executive Order es
Publishing the office OF Economic
Stnbllization that II "shall he tn,
duty and responsibility Of NIL depart
nents and agencies OF the Govern
inent to cooperate In the execution
of the administrative program work
!, cd out by the OES under It's instruc
tions In the same order "to stabilize
the cost OF living IN nccordnncc with
the Act Of October .. 1912"
irhe Importance of control over
transportation rates. Glnsburg de
clared. came from the fact that II
was impossible to obtain stabilIza
1 ton merely by putting ceilings ppor
the prices OF goods and services
bought by the public and the fact
that, at every stage Of the economic
4 process, goods must be moved.
II An increase OF freight rates