1940: Interstate Commerce Commission

The jurisdiction of the Commission was broadened and the existing law relating to interstate commerce was amended in important respects by the Transportation Act of 1940, approved Sept. 18, 1940. The Interstate Commerce Act now consists of three parts. The first relates to steam railways; the second to motor carriers; and the third, which is the new part, to water carriers. The jurisdiction of the Interstate Commerce Commission over water carriers before 1940 was confined to domestic common carriers engaged in interstate transportation partly by railroad and partly by water when both the rail and water carriers were used under a common control, management, or arrangement for a continuous carriage or shipment. The new act makes all domestic water carriers, except as noted below, subject to the same kind of comprehensive regulation which for years has been applied to railways, leaving to the Maritime Commission the regulation of carriers engaged in foreign commerce. Domestic water carriers are divided into three classes, common, contract, and private. The common carriers are those which hold themselves out to the general public to carry passengers or property, and with respect to them the regulation is to be most complete. Contract carriers engage in transportation under individual contracts or agreements. They must publish and observe schedules of minimum rates or charges, unless relieved by the Interstate Commerce Commission. Private carriers are not subject to regulation by the Interstate Commerce Commission. Specifically exempted from Interstate Commerce Commission regulation under the new act are the transportation by a water carrier of commodities in bulk when the cargo space is being used to carry not more than three such commodities, the transportation of liquid cargoes in bulk in tank vessels, and such other transportation by contract carriers which is not actually and substantially competitive with the transportation performed by common carriers. Common carriers by water must in the future obtain 'certificates of public convenience and necessity' before engaging in transportation, and contract carriers by water must have from the Interstate Commerce Commission 'permits' to operate. These provisions are similar to those in force in regard to motor carriers.

For the administration of this new Part III the Commission has announced the creation of a Bureau of Water Carriers, but that bureau will not be comparable in the range and volume of its activities with the Commission's Bureau of Motor Carriers. Some of the new functions will be distributed among other existing bureaus in the Commission to a much greater extent than obtains in the case of motor carrier regulation.

Amendments of the Interstate Commerce Act other than those relating particularly to water carriers are numerous. They can not all be noted here, but outstanding are the following: There is a comprehensive statement of 'National Transportation Policy' which, in brief, is to provide for fair and impartial regulation of all modes of transportation, to develop and coordinate their use, to preserve the inherent advantages of each without destructive competitive practices, and to encourage fair wages and equitable working conditions for their employees. The Commission is directed to make an investigation as to the lawfulness of existing rates in the classification territories and of their relation to each other. It is given greater discretion with respect to departures from the long and short haul clause. Its control over holding companies is extended somewhat without, however, being made as complete as that which the Commission has over operating companies. In the new act carriers are given more freedom in planning consolidations, but there must be equitable arrangement for protecting the interests of employees. In the revision of the Commission's procedure specific authority is given to it to refer its work to divisions of Commissioners, individual Commissioners, or to boards of employees. By order dated November 15, 1940, the Commission adopted an organization schedule and made assignments of work and functions among the present five divisions, individual commissioners, and sixteen bureaus. In the future, land grant carriers shall receive full commercial rates for transporting persons or property of the United States, except military or naval property or forces. Interesting also is the creation of an independent board of investigation and research to determine the relative economy and fitness of railways, motor carriers, and water carriers for transportation service, the extent to which each is receiving a subsidy from public funds, and the extent to which taxes are imposed on such carriers by agencies of government, Federal, State, and local.

Thus the year 1940 may be said to mark an attempt to perfect the Federal control of transportation agencies largely through the Interstate Commerce Commission. (See also TRANSPORTATION.)