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Mr. MAGNUSON, from the Committee on Commerce, submitted the

following

REPORT

BEING THE PRELIMINARY DRAFT OF A REPORT PREPARED FOR THE COMMITTEE BY ITS SPECIAL STUDY GROUP, PURSUANT TO SENATE RESOLUTIONS 29, 151, AND 244 OF THE 86TH CONGRESS

XXI

SUMMARY OF NATIONAL TRANSPORTATION

POLICY REPORT

(Pursuant to S. Res. 29 and S. Res. 244, 86th Cong.)

January 1961

PART I-INTRODUCTION

CHAPTER 1. THE STUDY CONCEPT

This chapter is devoted to generalizations_which are more or less self-evident and which set the tone of the whole report. Among these concepts, we find the following:

We are unique among major nations in that we have avoided nationalization in any form.

Our policy has been and should continue to be one of reliance on private ownership so long as that ownership fills our transportation needs.

Our overall system is not, at the moment, in acute financial distress, but there are strong indications of trouble ahead in the not too distant future.

In the presence of excess overall capacity, competitive pricing must be related to cost if we are to avoid destructive price wars during the slow process of readjusting capacity to changing requirements.

All evidence points to the national necessity of preserving common carriage as the only means of providing the general transportation service needed by all.

In the public interest we challenge the merits of bargain rates which result in inadequate return on investment.

The power component of transportation is recognized and compared with the more familiar service component.

CHAPTER 2. THE NATIONAL TRANSPORTATION POLICY

This chapter points out that the present program of regulation does not provide complete equity of treatment of the several modes and certainly includes inconsistencies and contradictions. In fact, even if these deficiencies were done away with, the present policy would be inadequate.

There is too great emphasis placed today upon the protection of the business stability of individual carriers of a mode rather than upon the carrier industries or modes themselves.

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