Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-04-05
Kennedy Asks Easing
Of Carrier Controls
Move Urged
To Promote
Lower Rates
By GARRETT ID. HORNER
Star staff Writer

President K enn edy urged
Congress today to reduce Fed
eral regulation of tranSporta-
ton in the hope of squirting
competition and promoting
lower rates and greater eff
cheney.
He proposed three major
moves toward limiting Federal
control of intercity passenger
rates and certain freight rates
by having the Government set
a ceiling or changes rather
than the control all rates.
So far as airlines are con-.
cerned, however, he suggested
that the lifting of Federal con-
troll over minimum rates be
tackled only gradually or on a
temporary, try-it-and-See how
it-WorkS, basis.
The President told Congress
in a special message, that ex-
ceSSive Federal regulation now
"Shackles and diStortS" initia-
tive by various segmentS of the
transportation industry.
Calling for a fundamental
reShaping of "a chaotic patch
work" of Federal policies in the
transportation field, he stressed
that less Federal regulation
and subSidization is in the long
run a prime requisite of q
healthy inter-city transporta-
ton network.
In the field or urban trans
portation, Mr.. Kennedy said
national welfare requires prop
erly balanced use of private
vehicles and modern mass
transport to help shape as we'll
as serve urban growth.
He urged substantial ex-
pansion" in the urban mass
transportation program au-
thorized in the Housing Act OF
1861 as well as revisions ir
Federal highway legislation t
aid in this field.
Specifically, he recommended
a $500 million. three-year pro-
gram of Federal aid to urban
regions. "for the rehabilitation
and needed expansion of public
mass transportation"
Offers Recommendation
Mr.. Kennedy submitted to
Congress long list of specific
recommendations. He said he
realized the task required would
take considerable time and eff
fort. He classed as most criti-
cal and controversial his pro-
poSals for legislation to:
/. Eventually limit the con-
troll of inter-city passenger rates
to the establishment of maxi
mum rates only"
2. Extend to all carriers the
exemption from approval or
prescription of minimum freight
rates on bulk commodities that
now apply only to water car
riers.
3. Also extend to all carriers
an exemption from regulation
of minimum freight rates on
agricultural and fishery prod
uctS that now is available to
motor carriers only and freight
forwarderS.
Reduce, Equalize Regulation
The President said the COM
bined effect of the proposed
actions regarding freight rates
would be to reduce drastically
and equalize fairly the regula-
ton of freight rates." and lead
toward improved service and
love- rates.
THE travelling public" Mr..
Kennedy said, like the COM
shipper. is also unin-
tereSted in paying higher rates
to Subsidize weak segmentS of
the transportation industry"
He said vigorous competition
and innovation between various
companies or even modes of
public transportation is impos-
sible as long as Federal agen-
cieS fix minimum rates for pas
Senger travel.
While he proposed a gradual
or try-out approach to lifting
the regulation of minimum air
line rates. officials said permit
ting railroads to fix their own
rates under a ceiling set by the
Government might promote eff
forts to increase railroad busi-
ness by bargain rates at Ger
tain times Of the day, for ex-
ample.
Emphasizing that an efficient
and dynamic transportation
See TRANSPORT, Page AS