OCR Text |
Show route and all-rail routes and some of the all-rail rates are related to the ex-lake adjustment. Iron and steel articles for the most part constitute competitive traffic. The river carriers largely have gone out of the business of handling carload and less-carload package freight be- cause of the prohibitive cost of handling this traffic to and from barges. The Interstate Commerce Commission in its decision in Rail and Barge Joint Rates (270 I. C. C. 591), decided July 7, 1948, found that there were no demonstrable economies in joint barge-rail transporta- tion on the Mississippi River and its tributaries as com- pared with all-rail transportation. However, it prescribed a system of differentials based upon its interpretation of the congressional policy. Its decision is now before the courts. There is not now an appreciable river movement of traffic of the type dealt with in that decision and, there- fore, no competition of consequence between the river carriers and the railroads as to this traffic. Some atten- tion is being given by water carriers to the increased use of truck-trailers on the rivers and elsewhere. This devel- opment may eventually attract a substantial volume of competitive package freight to the water routes. The river carriers in recent years have concentrated on bargeload or large-volume types of traffic and for this traffic there is general competition between these carriers and the railroads, except probably bulk petroleum which moves largely by water or by pipeline in all areas. Rail- road rate reductions or proposed reductions to meet water competition -which have come to the attention of the Commission during the past year include a number of com- modities in various areas as shown by table -. There is competition between the railroads and the water lines for substantially all intercoastal traffic through the Panama Canal, and the rates of both sets of carriers reflect this competition. The general and substantial in- creases in railroad rates in the last 3 years between in- terior points and seaports have tended to exclude the inter- coastal carriexs from participation in traffic moving to or from interior areas that they formerly handled. There also is competition between the railroads and the Atlantic- Gulf coastwise water carriers, now few in number as compared with those in operation prior to the war. In these territories, however, the rates have reflected more standardized relationships between the rail and the water routes than generally has been true elsewhere, by reason of the prescription by the Interstate Commerce Com- mission of rate adjustments for both the rail carriers and the water carriers. For many years prior to the war there was active com- petition between the railroads and water carriers provid- ing regular common carriers service along the Pacific coast. The rail rates reflected this competition probably to a greater extent than was true of water-competitive rail rates in any other area, and became substantially lower than the noncompetitive rail rates in the western terri- tory. These north-south Pacific coast water-competitive rates were continued in effect after the war, subject to some upward specific modifications and to the general increases applicable to all rates, but have been asserted by the interested water carriers as still too low to permit a resumption of the prewar common carrier Pacific coast- wise service. There has been and is a substantial move- ment of lumb>er and other forest products by contract water carriers along the Pacific coast. This water move- ment of lumber is to some extent, but not extensively, competitive with rail service. The general conclusion is that the provision of water- way facilities has fostered competition between water car- riers and the railroads in the following areas and respects: Intercoastal, Atlantic-Gulf coastwise and Pacific coast- wise, as to substantially all traffic. Great Lakes, as to a limited amount of the total traffic; the movement of much of the remainder by water, how- ever, being of ultimate traffic-producing benefit to the railroads. On the inland river system, general competition as to bargeload or volume traffic, except principally bulk petro- leum. Regulatory controls, restrictions, and rate-making stand- ards with respect to their effect on the quantity and type of waterway transportation services provided and the economic and defense objectives of waterway im- provement.-The regulatory controls and restrictions as they directly or indirectly affect domestic transportation by water, have to do more particularly with the power in the ICC to prescribe minimum reasonable rates for each of the modes of transportation, and its control over the entry into the business of water carriage through the issu- ance or withholding of operating authority. A secondary type of control over operations is the power to specify the kind of operation, as by self-propelled vessels or by tug and barge, which was first given effect in the determination of "grandfather" applications according to the kind of service theretofore performed. Another control is that over mergers or transfers of operating authorities which the Commission may approve or disapprove as the public in- terest may appear. One of the principles pertaining to transfers is that transfer of a dormant water carrier operat- ing authority will not ordinarily be approved unless the holder can show that the nonuse was due to circumstances beyond his control. In deciding applications for water carrier operating authority, the question of adequacy of land transportation between the same points or areas has not been a control- ling consideration, but such applications have been denied where it appeared there already was adequate transporta- tion by water. The regulatory controls over water carrier operations have not, as a general proposition, had an adverse effect on the quantity and type of waterway transportation serv- ices and the economic and defense objectives of waterway improvement. The Commission has no authority to re- strict the right of a water carrier to add to its equipment, facilities, or service within the scope of its certificate or permit. The chief controversies and criticisms pertaining to reg- ulation as it affects water carriers have had to do with intercarrier competition between railroads and water car- riers. The national transportation policy provides that all of the provisions of the Interstate Commerce Act shall be administered and enforced with a view to carrying out the policy, which declares-so far as primarily concerns the im- mediate questions-that the policy and the act shall be so administered as to recognize and preserve the inherent advantages of each of the modes of transportation; pro- mote economical and efficient service and foster sound economic conditions in transportation and among the sev- eral carriers; and encourage the maintenance of reasonable 438 |