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The undersigned members of the Committee on Interstate and Foreign Commerce are unable to agree with the committee's action in reporting the substitute for S. J. Res. 161. The reasons for our dissent are as follows:

Under section 5 (1) (2) of the interstate commerce act, as amended by the transportation act of 1920, numerous consolidations, mergers, and leases have been consummated. In fact, so many have been proposed during the last two or three years that marked uneasiness has been caused throughout the country. The pressure for the general unification bill intensified the feeling upon this subject.

On December 9, 1929, the Interstate Commerce Commission, in compliance with section 5 (5) of the interstate commerce act, adopted a plan for the consolidation of all of the railroads into 21 systems. It is no exaggeration to say that the commission's action, with its startling potentialities, excited much dissatisfaction throughout the country. Particularly were the communities and local interests which would be affected greatly disturbed and the fears of large numbers of railroad workers aroused for its effect upon their positions, and other interests. The commission's subsequent conditional approval of the Great Northern Pacific consolidation had effect to confirm these apprehensions of communities and workers.

It was to relieve the anxiety which has thus been aroused that S. J. Res. 161 was presented. Its supporters hold that, in order to calm the apprehensions of the general public and of labor and local interests, all further consolidations except those proposed under severe restrictions should be temporarily suspended. In the form in which the resolution was passed by the Senate, it provided (1) that all consolidations not made under specified conditions be suspended until March 4, 1931, and (2) that not more than a single carrier shall be controlled through a holding company, trust, pool, or other device. The suspension of consolidations until March 4, 1931, permitted them upon the conditions (a) that the interests of employees be safeguarded; (b) that existing routes and channels of commerce be maintained, and that the proponent offer to acquire the remaining lines of the system; (c) that, except as to short lines, no consolidations in violation of the antitrust laws should be made; and (d) that the interest of local communities in general offices and shops be protected. The committee's substitute for the resolution abandons (b) and (c) of these conditions. It preserves, as a permanent law, conditions (a) and (d) relating to employees and to the removal of offices and shops, but as to both of these interests merely mild and insufficient gestures. of protection are made. As to employees, it provides merely that the commission is "authorized" to require that the carriers compensate, etc., the employees for losses, "so far as the commission has determined that it is just and reasonable, in the public interest, so to do." The commission, in the exercise of the discretion thus conferred, may ignore the interests of employees altogether, or may balance the public interest against the employees' interest and ignore the latter if it be found the lesser. As to the local interest of a community in shops and offices, the commission is given discretion to determine

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"what is just and reasonable and in the public interest" only where the local losses arise under "a contract for value, a bond issue, or any provision of law." No protection whatever is given to local interests not included in these narrow limitations, and even as to them no express authority is given to make any award or to require payment, etc. Manifestly, these provisions are wholly inadequate to protect either of these interests.

As to (b) and (c) the substitute contemplates that the commission may continue to approve consolidations of competing carriers, that combinations and mergers violative of the antitrust laws may go on, that existing routes and channels may be disrupted, and that the consolidation plan adopted under section 5 (5) be ignored.

PROVISIONS ON HOLDING COMPANIES

The substitute changes that part of the resolution aimed at consolidations and mergers through holding companies, trusts, etc., so that same will be applicable only to future acquisition of control. This is done by eliminating the prohibition against the exercise of control and confining it solely to the acquisition of control. Combinations heretofore achieved through holding companies are permitted to continue their manipulations. Concerns such as the Alleghany Co., the Penn Road Co., and others, of which there are many, organized for the sole purpose of evading the requirements of law, are to continue to exercise over the carriers which have come into their webs the control which they are prohibited from exercising directly.

Probably numerous controls and combinations effected through holding companies and trusts are violative of the antitrust laws. The particular vice of this part of the substitute is that it affords a means whereby such unlawful combinations may be made lawful. The substitute confers upon holding companies, etc., the choice of whether they will have legality given to combinations, etc., which were made unlawfully, or continue to exercise under them the control which they may have illegally gained.

CONCLUSION

For the reasons stated, the substitute is far less satisfactory than the resolution as adopted by the Senate. As a whole we regard it as of no practical value whatever. Without bringing the good faith of its proponents into question, we regard it as an evasion of the facts of the situation.

We are confronted by a practical situation. Adjournment is close at hand. If passed at all, the measure must be passed immediately. The Senate, after a full hearing and earnest debate, adopted the resolution. The House should adopt it in the Senate form; otherwise there is little hope for legislation during the session.

We would prefer that all legislation upon the subject be defeated than to accept a measure such as the substitute, which is so far short of the pressing requirements of the situation. Responsibility for such defeat will rest upon those who refuse to accept the resolution without amendment.

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2d Session

No. 2024

SPECIAL DELIVERY AND SPECIAL HANDLING OF MAIL MATTER

JUNE 25, 1930.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. KELLY, from the Committee on the Post Office and Post Roads, submitted the following

REPORT

[To accompany H. R. 10676]

The Committee on the Post Office and Post Roads, having had under consideration the bill (H. R. 10676) to restrict the expeditious handling, transportation, and delivery of certain mail matter where local or contractual conditions are inadequate, reports the same back to the House with the following amendments:

Strike out everything after the enacting clause and insert the following in lieu thereof:

That the Postmaster General is authorized to provide and issue specialdelivery and special-handling stamps of such denominations as he may consider necessary.

SEC. 2. To procure the most expeditious handling and transportation practicable, and the immediate delivery of mail matter at the office of address specialdelivery stamps shall be affixed thereto, in addition to the regular postage, in accordance with the following schedule: Matter weighing not more than two pounds, if of the first class, 10 cents, if of any other class, 15 cents; matter weighing more than two but not more than ten pounds, if of the first class, 20 cents, if of any other class, 25 cents; matter weighing more than ten pounds, if of the first class, 25 cents, if of any other class, 35 cents: Provided, That, under such regulations as the Postmaster General may prescribe, ordinary postage stamps of equivalent value may be accepted in lieu of the special-delivery stamps herein specified.

SEC. 3. For making special delivery there may be paid to the messenger or other person making such delivery 9 cents for matter of the first class weighing not in excess of two pounds, 10 cents for matter of other than the first class weighing not in excess of two pounds, 15 cents for mail matter of any class weighing more than two pounds but not in excess of ten pounds, and 20 cents for mail matter of any class weighing in excess of ten pounds.

SEC. 4. To procure the most expeditious handling and transportation practicable of mail matter of the fourth class, special-handling stamps shall be affixed thereto, in addition to the regular postage, in accordance with the following schedule: Matter weighing not more than two pounds, 10 cents; matter weighing

more than two but not more than ten pounds, 15 cents; matter weighing more than ten pounds, 20 cents: Provided, That, under such regulations as the Postmaster General may prescribe, ordinary postage stamps of equivalent value may be accepted in lieu of the special-handling stamps herein specified.

SEC. 5. Section 212, Title II, of the act of February 28, 1925, reclassifying the salaries of postmasters and employees of the Postal Service, readjusting their salaries and compensation on an equitable basis, increasing postal rates to provide for such readjustment, and for other purposes (43 Stat. 1069; U. S. C. title 39, secs. 166, 170), and so much of section 207 of Title II of said act as relates to the expeditious handling, transportation, and delivery of mail matter of the fourth class (43 Stat. 1067; U. S. C. title 39, sec. 294), as amended (sec. 8, act of May 29, 1928; 45 Stat. 943, 944; U. S. C. Supp. III, title 39, secs. 166, 294), and all acts and parts of acts inconsistent herewith, are hereby repealed. Amend the title so as to read:

A bill to provide for the special delivery and the special handling of mail matter. As so amended, the committee recommends that the bill do pass. Section 212, Title II, of the act of February 28, 1925 (43 Stat. 1069; U. S. C., title 39, secs. 166, 170), and so much of section 207 of Title II of said act as relates to the expeditious handling, transportation, and delivery of mail matter of the fourth class (43 Stat. 1067; U. S. C., title 39, sec. 294), as amended by the act of May 29, 1928 (45 Stat. 943, 944; U. S. C., title 39, Supp. III, secs. 166, 294), read as follows:

SEC. 212. (a) To procure the immediate delivery of mail matter of the first class weighing not more than two pounds, stamps of the value of 10 cents shall be affixed (in addition to the regular postage); matter weighing more than two pounds and not more than ten pounds, stamps to the value of 20 cents shall be affixed (in addition to the regular postage); and matter weighing more than ten pounds, stamps to the value of 25 cents shall be affixed (in addition to the regular postage).

(b) Mail matter of other than the first class bearing, in addition to the regular postage, a special-delivery stamp of the proper denomination or the equivalent thereof in ordinary stamps, with the words "Special delivery" written or printed on the envelope or wrapper when ordinary stamps are used, shall receive the same expeditious handling and transportation as is accorded to mail matter of the first class and shall be accorded immediate delivery at the office of address, under such regulations as the Postmaster General may prescribe.

(c) To procure immediate delivery of mail matter of other than the first class weighing not more than two pounds, stamps to the value of 15 cents shall be affixed (in addition to the regular postage); weighing more than two pounds but not more than ten pounds, stamps to the value of 25 cents shall be affixed (in addition to the regular postage); and for matter weighing more than ten pounds, stamps to the value of 35 cents shall be affixed (in addition to the regular postage). (d) For making special delivery there may be paid to the messenger or other person making such delivery 9 cents for matter of the first class weighing not in excess of two pounds, 10 cents for matter of other than the first class weighing not in excess of two pounds, 15 cents for mail matter of any class weighing more than two pounds but not in excess of ten pounds, and 20 cents for mail matter of any class weighing in excess of ten pounds.

(e) For the purpose of this act the Postmaster General is authorized to provide and issue special-delivery stamps of the denominations 10, 15, 20, 25, and 35 cents.

So much of section 207 of Title II of the act of February 28, 1925 (43 Stat. 1067, U. S. C., title 39, sec. 294), as refers to the expeditious handling, transportation, and delivery of mail matter of the fourth class is hereby amended to read as follows:

Whenever, in addition to the postage as hereinbefore provided, there shall be affixed to any parcel of mail matter of the fourth class a special-handling stamp of the proper denomination, or the equivalent thereof in ordinary postage stamps with the words "Special handling" written or printed upon the wrapper, such parcel shall receive the same expeditious handling, transportation, and delivery accorded to mail matter of the first class: Provided, That to procure special

handling treatment of mail matter of the fourth class weighing not more than two pounds stamps to the value of 10 cents shall be affixed (in addition to the regular postage), weighing more than two pounds but not more than ten pounds stamps to the value of 15 cents shall be affixed (in addition to the regular postage), and on such matter weighing more than ten pounds stamps to the value of 20 cents shall be affixed (in addition to the regular postage).

The provisions of the present law are set forth below showing the language of the law to be amended-subdivision (b) and the last paragraph of section 8 of the act entitled "An act to amend Title II of an act approved February 28, 1925 (43 Stat. p. 1066, U. S. C., title 39), regulating postal rates, and for other purposes (45 Stat. pp. 943, 944, U. S. C., Sup. III, title 39, secs. 166, 294)-in ordinary type, with the proposed changes carried in the present bill (H. R. 10676, as introduced) in italics:

Subdivision (b) of section 8:

(b) Mail matter of other than the first-class bearing, in addition to the regular postage, a special-delivery stamp of the proper denomination or the equivalent thereof in ordinary stamps, with the words "Special delivery" written or printed on the envelope or wrapper when ordinary stamps are used, shall receive the same expeditious handling and transportation as is accorded to mail matter of the first class, except where local or contractual conditions preclude, and shall be accorded immediate delivery at the office of address, under such regulations as the Postmaster General may prescribe.

Last paragraph of section 8:

Whenever, in addition to the postage as hereinbefore provided, there shall be affixed to any parcel of mail matter of the fourth class a special handling stamp of the proper denomination, or the equivalent thereof in ordinary postage stamps with the words "Special handling" written or printed upon the wrapper, such parcel shall receive the same expeditious handling, transportation, and delivery accorded to mail matter of the first class, except where local or contractual conditions preclude: Provided, That to procure special handling treatment of mail matter of the fourth class weighing not more than 2 pounds stamps to the value of 10 cents shall be affixed (in addition to the regular postage), weighing more than 2 pounds but not more than 10 pounds stamps to the value of 15 cents shall be affixed (in addition to the regular postage), and on such matter weighing more than 10 pounds stamps to the value of 20 cents shall be affixed (in addition to the regular postage).

Below is given a comparison of the bill H. R. 10676 as amended in committee with the present law cited above:

THE BILL

[H. R. 10676 with committee amendment]

That the Postmaster General is authorized to provide and issue specialdelivery and special-handling stamps of such denominations as he may consider necessary.

SEC. 2. To procure the most expeditious handling and transportation practicable and the immediate delivery of mail matter at the office of address special-delivery stamps shall be affixed thereto, in addition to the regular postage, in accordance with the following schedule: Matter weighing not more than two pounds, if of the first class, 10 cents, if of any other class, 15 cents; matter weighing more than two but not more than ten pounds, if of the first class, 20 cents, if of any other

PRESENT LAW

[Sec. 8, act of May 29, 1928; 45 Stat. 943, 944; U. S. C., Supp. III, title 39, secs. 166, 294]

(e) For the purpose of this act the Postmaster General is authorized to provide and issue special-delivery stamps of the denominations 10, 15, 20, 25, and 35 cents.

(a) To procure the immediate delivery of mail matter of the first class weighing not more than two pounds, stamps of the value of 10 cents shall be affixed (in addition to the regular postage); matter weighing more than two pounds and not more than ten pounds, stamps to the value of 20 cents shall be affixed (in addition to the regular postage); and matter weighing more than ten pounds, stamps to the value of 25 cents shall be affixed (in addition to the regular postage).

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