PROPOSED AMENDMENTS TO FEDERAL TRANSPORTATION LAWS 437 company is concerned the provisions of S. 3243 would bear upon us Rail carriers under the provisions of this bill would be entirely I personally cannot in good faith defend the principle of requiring one group of carriers to subject their rates to Government regulation and at the same time exempting another group from such regulation. I believe this is the very condition which gave rise to S. 3243. If this bill did nothing more than accord equal treatment to the rail carriers and the water carriers, I for one would not suggest that Congress should fail to take an affirmative action. However, I find in this bill a paradox whereby an injustice to one group is eliminated and at once imposed in devastating force upon another. The rail carriers by virtue of their financial strength have managed to compete to a degree for bulk traffic even though their rates have been subject to regulation and the water carrier rates have not. In any case, the water carriers could not possibly destroy the rail I think the President might have suspected this when he suggested e ideals ruthlessly. I believe on prin regulated common carrier and not upon determining that there exists able to it a clear course to correct th carrier groups would do exactly that ongress in its deliberations will not fail ent to the railroads' financial strength as PROPOSED AMENDMENTS TO FEDERAL HEARINGS BEFORE THE COMMITTEE ON COMMERCE EIGHTY-SEVENTH CONGRESS SECOND SESSION ON S. 3242 A BILL TO PROVIDE FOR STRENGTHENING AND IMPROVING PURPOSES; AND A BILL TO EXEMPT CERTAIN CARRIERS FROM MINIMUM RATE 86508 PART 1 [Testimony of Government Witnesses] JUNE 27, 28, 29; JULY 2, 24, 25, 26, AND 27, 1962 Printed for the use of the Committee on Commerce D STAN UNIVERSITY DIVISION SENATE COMMITTEE ON COMMERCE JOHN O. PASTORE, Rhode Island JOHN MARSHALL BUTLER, Maryland KENNETH B. KEATING, New York EDWARD JARRETT, Chief Clerk HAROLD L. BAYNTON, Chief Counsel JOHN M. MCELROY, Assistant Chief Counsel JEREMIAH J. KENNEY, Jr., Assistant Chief Clerk WILLIAM T. BEEKS, Jr., Staff Counsel AUGUST J. BOURBON, Professional Staff Member GERALD B. GRINSTEIN, Staff Counsel 1 Senator Prouty appointed to committee July 18, 1962, succeeding Senator Clifford P. Case of New Jersey. II CONTENTS Batrus, Frederick E., Acting Assistant Postmaster General, Bureau of Transportation, Post Office Department, Washington, D.C. (accompanied by Adam G. Wenchel, Associate General Counsel) _ _ Dice, George A., Director, Special Services Division, Agricultural Marketing Service, Department of Agriculture, Washington, D.C. (accompanied by James L. Pease, Chief, Freight Rate Service Branch; Joseph Quin, attorney, Office of the General Counsel; and I. W. Ulrey, Assistant Chief, Freight Rate Service Branch). Hodges, Hon. Luther H., Secretary, Department of Commerce, Wash- Loevinger, Lee, Assistant Attorney General, Antitrust Division, Department of Justice, Washington, D.C.. Martin, Clarence D., Jr., Under Secretary of Commerce for Trans- portation, Department of Commerce, Washington, D.C. Morris, Maj. Gen. I. Sewell, Executive Director, Military Traffic Management Agency, Department of Defense, Washington, D.C. (accompanied by Gilmer B. Randolph, Executive Officer).. Murphy, Hon. Rupert L., Chairman, Interstate Commerce Commis- sion, Washington, D.C. (accompanied by Commissioners Howard G. Freas, Abe McGregor Goff, Clyde E. Herring, and William H. Letter from— Hodges, Luther H., Secretary of Commerce, Department of Commerce, Katzenbach, Nicholas deB., Deputy Attorney General, Department Martin, Clarence D., Jr., Under Secretary of Commerce for Trans- Reports from-- Department of Agriculture, on S. 3242, dated June 25, 1962- Federal Aviation Agency, on S. 3242 and S. 3243, dated June 28, 1962__ President Kennedy's message entitled "The Transportation System |