GENERAL COMPARATIVE AN TO SCHEDULED AIR Par GENERAL COMPA Part PUBLIC AIDS TO SCHEDUL Published after expiration of Emergen SECTION OF FEDERAL COORDINATOR UNITED GOVERNMENT PR WASHING For sale by the Superintendent of Documents, Washington, D. C. alysis. Air Transportation. Subjects. ads. tures of Railroads. n by Water. ts and Related Aids. tation Operations on Inland lysis of the Inland Waterways e Transportation-An Analysis Costs and Motor Vehicle User ver, they have been released as a unit. because it is " In another part more particularly th The claim that a s are concerned, rests both the Federal and roads. It is asserted through special taxati investment, so that pa is borne by other user In the case of water c enjoy the benefit of Panama Canal, the Ne ways, and to some exte uting their fair share to Waterways Corporation operating barge lines of is also pointed out that deficit which it may inc exempt from all taxati claim that a subsidy e carriage of the mails. As to the facts, there is competitors. In its forty-fifth annual report for the year 1931, the Interstate Commerce Commission discussed this subject as follows: In another part of this report we have set forth certain facts in regard to the rapid development of competition with the railroads by motor carriers, water carriers, pipe lines, and airplanes. In connection with this competition, two contentions are advanced. One is that these competing transportation agencies, more particularly the motor, water, and air carriers, are in effect subsidized by the government, and that to the extent of such subsidy their competition is unfair. The other is that these transportation agencies should be subjected to a greater degree of public regulation than now exists, in the interest of public safety and convenience, the elimination of purely wasteful and destructive competition, stability in rates, and the proper maintenance and development of the national transportation system as a whole. The claim that a subsidy exists, so far as the motor carriers are concerned, rests chiefly on the great public investment, by both the Federal and the State Governments, in highways and roads. It is asserted that the motor carriers do not contribute through special taxation their fair share to the support of this investment, so that part of the burden which they should carry is borne by other users of the highways or by general taxation. In the case of water carriers, a similar claim is made that they enjoy the benefit of a huge public investment, including the Panama Canal, the New York State Barge Canal, other waterways, and to some extent docks and terminals, without contributing their fair share to its support. With respect to the Inland Waterways Corporation, owned by the Federal Government and operating barge lines on the Mississippi and Warrior Rivers, it is also pointed out that the Government bears the burden of any deficit which it may incur in operation, and that its facilities are exempt from all taxation. In the case of the air carriers the claim that a subsidy exists is based on the contracts for the carriage of the mails. As to the facts, there is no agreement, and the claims made with respect to these alleged subsidies are vigorously disputed. We are not in possession of the facts and therefore cannot report them to Congress. In our opinion the time has come to ascertain these facts by an impartial and authoritative investigation. The office of Federal Coordinator of Transportation ceased to exist at the end of 3 years, on June 16, 1936. At that time the Research Department, in charge of Dr. Morgan, had largely completed the tentative reports in this investigation, although not all of them had as yet been sent out for comment and criticism. In connection with other departments, it had in a similar stage of approaching completion a series of reports on wages and labor standards in the various branches of the transportation industry, and also a report dealing with the problems of the short line railroads. Such a mass of valuable information had been accumulated that it seemed highly desirable to complete and issue all of these reports, if this could possibly be done. The office of the Federal Coordinator of Transportation was supported, under the law, by assessments on the railroads paid into the Treasury of the United States. These assessments, as appropriations in Washington go, were not large, amounting to $401,558, $527,496, and $522,259, in the 3 years, respectively. The law provided that any unexpended balance remaining at the termination of the office should be returned to the railroads. The sum so remaining was $17,291.61. The railroads were requested and agreed, in general, to permit the use of this fund in completion of the research studies. It was returned to them, and of the total they placed $15,115.36 at my disposal. My thanks are due the railroads for their cooperation in this respect. However, this sum sufficed to complete only part of the work. Under the terms of the Emergency Railroad Transportation Act, 1933, I had been authorized, as Coordinator, to call upon the Interstate Commerce Commission for assistance, and such aid had been very generously furnished, especially in connection with the research work. The names of the persons who so assisted are given in the underlying reports. After the expiration of the office of Coordinator, the Commission again lent its aid, by permitting a small number of persons of its staff to continue participation in such work, and this included stenographic assistance and supplies. However, the reports could not have been completed except for the time which Dr. Morgan and others have devoted to them without compensation outside of the office hours. He has taken no vacation and has worked, almost continuously, nights, Sundays, and holidays, for the past 6 years. The last of the other reports, on wages and labor standards in transportation and on the short line railroads, was issued in August 1937. The reports now being issued complete the work. Printing has also presented a problem. The sum of $10,000 had been set aside for this purpose prior to the close of the office of Coordinator, but more proved to be needed. Permission to use approximately $12,000 from unexpended National Industrial Recovery funds which had been allocated to the Coordinator was kindly given by the Bureau of the Budget. In addition to the foregoing acknowledgments of financial and other assistance, I wish to thank various Federal and State departments and many individuals and organizations for information furnished and for commenting on and otherwise assisting in the development of the reports. The names of the individuals, including technical experts attached to universities, Government departments, and trade associations, have been set out in the underlying reports and need not be repeated here. The other acknowledgments I wish personally to make are indicated below. Obviously, however, there is no intention to imply that the agencies or individuals listed are in agreement with the facts and findings of the underlying reports. Vol. I, part II (Public Aids to Air Transportation): Hon. James A. Farley, Postmaster General, and other officials of the Post Office Department; officials of the former Bureau of Air Commerce, Department of Commerce; and officials of the Civil Aeronautics Authority. Vol. II: Officials of the Reconstruction Finance Corporation, of the former Railroad Division of Public Works Administration, and of the Quartermaster Corps of the United States Army; also officials of the Department of the Treasury for permission to use certain files of income tax returns. Special acknowledgment should be made of the important assistance given by the Bureau of Valuation of the Interstate Commerce Commission. (See vol. II, p. iii.) Vol. III: Hon. Harry H. Woodring, Secretary of War, the Chief of Engineers, United States Army, and the Board of Engineers for Rivers and Harbors; officials of the Panama Canal; Major General Thomas Q. Ashburn, former president and chairman of the board, Inland Waterways Corporation; and officials of the United States Maritime Commission and the Department of Commerce. Vol. IV: Hon. Thomas H. MacDonald, Commissioner of Roads, Public Roads Administration, Works Progress Agency, and Mr. H. S. Fairbank and other officials of that organization; the National Bureau of Standards of the Department of Commerce; and various State highway officials. The responsibility for these reports is one which I assumed as Federal Coordinator of Transportation and which I continue to assume. The Interstate Commerce Commission has no responsibility, and its members, other than myself, have no acquaintance with even the contents of the reports. The work had gone much too far, at the time the office of Coordinator terminated, to permit any transfer of responsibility to the Commission, if, indeed, that could have been done under the law, which is very doubtful. While, however, the responsibility for the reports is mine, the man to whom credit for them must be assigned is Dr. Charles S. Morgan. He has supplied the persistence, the industry, the intelligence, and the administrative ability which have brought these reports to completion. All that I have supplied is counsel and advice. He and I went into this investigation with the sole desire to ascertain and interpret all the pertinent facts as fully and fairly as possible, regardless of whom they might help or hurt. In my judgment, his reports furnish convincing evidence, if any were needed, that he has been faithful to that trust. |