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LETTER OF TRANSMITTAL

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Hon. WARREN G. MAGNUSON,

U.S. SENATE,

December 29, 1960.

Chairman, Committee on Interstate and Foreign Commerce,
U.S. Senate, Washington, D.C.

MY DEAR MR. CHAIRMAN: Transmitted herewith is the draft report of our national transportation policy study, prepared for submission to the Senate pursuant to Senate Resolutions 29, 151, and 244 of the 86th Congress. It is submitted in draft so that the Advisory Council may have an opportunity for comment on the complete report prior to adoption by the committee, as we discussed prior to adjournment. Early analysis of our problem indicated that most of the complaints about transportation deal with symptoms rather than basic causes. We have tried to identify these fundamentals and recommend concerning them. We are convinced that no lasting cure will result unless the cracks in the foundation are mended. These fundamentals are: lack of adequate information; lack of continuing research; lack of a program approach; and organization in the Government and in the law which impedes, rather than assists, coordination of promotion and regulation. Additionally, complete redirection of transportation pricing philosophy is indicated.

You, more than most, will recognize the highly controversial nature of most of the subjects we have tackled. You also know that most of them interlock to a degree that should forbid tinkering in isolated areas and which requires a broad program approach. For these reasons, and because we believe the committee will desire to hold hearings prior to committing itself to our conclusions, we recommend the report be printed as a staff document rather than a committee report. This procedure will make possible general consideration of our program and, it is hoped, give the committee the benefit of a wider reaction.

The controversial nature of the subjects has been evident throughout the study. It was early apparent that we would get nowhere by trying to follow a line of "equal handouts." We have carefully considered the opposing positions on controversial questions, as submitted by the Advisory Council and others. We have, in several particularly difficult areas, met repeatedly with ad hoc committees representing all sides. We have supplemented this information with independent research. In all cases we have tried to identify the national public interest in each question and base our recommendations thereon regardless of which side of the argument is favored.

We would like to emphasize that a number of our recommendations establish objectives toward which we should work over a period of years, rather than suggestions for immediate legislative implementation. While we believe these objectives are sound we recognize that hasty implementation could do great harm. In these cases we recommend legislative acceptance and establishment of the objective so that all may be informed but that a time schedule for implementation be designed to fit the circumstances.

As you are aware, we expected to require 2 years to complete the study under an annual budget approximately equal to the total we have expended over a period of 18 months. Curtailment of resources of time and money required we tailor the suit to the cloth. For this reason we have concentrated primarily on the troubled area of domestic surface transportation, recognizing the existence of pressing problems in other areas. The continuing research we have recommended will permit attention to these important questions.

As a suggestion not directly related to our study we would like to recommend that the studies underlying the recent Department of Commerce report on transportation be printed and made available for purchase through the Government Printing Office.

In closing, we would like to commend to your attention the fine cooperation we have had from most of the Advisory Council and the members of our ad hoc committees. The Under Secretary of Commerce, the regulatory agencies and other departments of Government, together with the Library of Congress, have furnished aid without which our limited staff would have been unable to proceed. Many valuable suggestions have been received from independent sources and from State regulatory bodies. We sincerely trust our product justifies their efforts.

Respectfully submitted.

JOHN P. DOYLE, Staff Director, Transportation Study Group.

FOREWORD

This is a preliminary draft of a report on our national transportation policy, prepared by a special study group under the authority of Senate Resolutions 29, 151, and 244, of the 86th Congress. It is in draft form so that the Advisory Council, which represents all forms of transportation, may comment on it before it is considered by the Committee on Interstate and Foreign Commerce.

In that connection, I wish to emphasize that the conclusions and recommendations incorporated into this staff report, and which are extremely controversial, represent the views of the members of the special study group, and have neither been approved, disapproved, nor considered by the Senate Interstate and Foreign Commerce Committee.

The committee will await comment and advice from the Advisory Council and other interested parties.

(Signed) WARREN G. MAGNUSON, Chairman.

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