[From the WATERWAYS JOURNAL, Oct. 15, 1960, p. 1]

FROM SENATOR KENNEDY

 WASHINGTON, D.C., October 4.

 TO THE EDITOR OF THE WATERWAYS JOURNAL
     I apologize for the delay in answering your letter requesting an elaboration of the Democratic platform with respect to its section on transportation. Your specific questions suggest a concern with the many factors affecting the competitive position of inland waterways with other modes of transportation. Without the benefit of a thorough and detailed examination of the effect of toll charges, rate changes, or operational diversification on each carrier, it would be impossible to give a definite answer.
     However, the questions illustrate the need for a mechanism by which the various levels of government can examine the broad aspects of our national transport system so that individual policies cane made in harmony with the fair and equal development of all our transportation systems.
     Insofar as inland waterways are concerned, I certainly feel that they render an indispensable service to the well-being of the national economy, that they should be developed and improved with diligence and energy, and that they should not be discriminated against by related governmental action.
     The Democratic platform indicated the importance of an early study of our national transportation policy which should include discussions of the problems involved with representative leaders in the field.
         Sincerely,

Senator JOHN F. KENNEDY.

(From the WATERWAYS JOURNAL, Oct. 22, 1960, p. 19)

FROM VICE PRESIDENT NIXON

 WASHINGTON, D.C., October 7.

 TO THE EDITOR OF THE WATERWAYS JOURNAL
     I am not unaware of the problems which the coastwise and intercoastal shipping industries have been attempting to overcome in recent months. Nor am I unaware of the expressions by some in the inland waterways industry that some of the coastal and intercoastal difficulties may spread inland.
     Since our transportation system represents the lifeblood of our economy, fair and impartial regulation of all modes must be provided, lest we fail to develop and maintain a system of transportation adequate to meet the needs of our country. This is no small task, for our economy continues to grow at a rapid rate.
     Numerous studies have been started, and many are still continuing, which include the question of user charges. In April 1958, former Secretary of Commerce Sinclair Weeks wrote the surface transportation subcommittee of the Senate Interstate and Foreign Commerce Committee:

     The Department of Commerce has under way a study of imposition of charges on the users of federally improved inland waterway facilities. * * * Although they might conceivably have a beneficial effect on railroads, such charges should not be fixed or collected by the Federal Government to achieve any such effect. Instead, they are only to provide appropriate payment for such Government improvements by those who benefit from them.
     In March 1960, the Department of Commerce recommended legislation to establish waterway user charges, specifying an initial low level of fuel taxes and step-by-step increases for a specific number of years. The fundamental principle is that users who benefit directly from Federal facilities should share in the cost of building and operating them.
     I am generally in accord with the principle that, in this area, those who benefit from public expenditures should pay for them. Nevertheless, if it should appear that the imposition of user charges, while achieving this purpose, would, at the same time, tend to destroy our domestic water carrier industry, it should certainly be given further consideration.
     Turning to the question of the right of railroads to enter other forms of transportation, such as barge lines: it is my understanding that common ownership (except for certain Panama Canal operations) is permissible, upon certain showings, under the present provisions of the law. There is now pending before the Interstate Commerce Commission a case in which several railroads propose to purchase a barge line. A great deal may still be accomplished through voluntary coordination. Although ownership of other forms of transportation is possible under existing statutes, litigation in this field has restricted substantially the area in which it might be permitted. Whether this area should be enlarged through legislation is a matter which should be left for determination after we have had more experience with voluntary coordination. The public interest will best be served in an atmosphere that encourages cooperative use of facilities and voluntary establishment of through routes and joint rates as between various modes. I would not, therefore, advocate any change at this time.
     The issue of what you raised as "selective rate cutting by the railroads on certain items of freight" is a most difficult area for discussion in a letter. "Selective rate cutting" means different things to different people. Competitive ratemaking should be so regulated as to afford the shipper the opportunity to take advantage of lawful lowcost transportation. Any advantage which a particular mode may have, by reason of characteristics peculiar to that mode, should be protected against any unfair or destructive practice engaged in by a competitive mode.
     The underlying concept is to maintain a regulatory system which affords carriers an opportunity fairly to compete one with the other. This contemplates a close and careful scrutiny of the industry to make certain that the establishment and maintenance of reasonable charges for transportation services are encouraged, without unfair or destructive competitive practices as provided in the national transportation policy. It is the overriding duty of the Interstate Commerce Commission to so administer the Interstate Commerce Act as to see that the needs of commerce of the United States and the national defense are met.
     The domestic water-carrier industry is vital to our commerce today, as well as to our defense effort both now and in time of national emergency. The public interest demands that it occupy its rightful place in our transport system. If it does not., our transportation potential will suffer, and our economy will not enjoy its maximum efficiency. This is the very type of weakening which we must carefully watch over and try to prevent.
     Sincerely,
 RICHARD M. NIXON,
 Vice President.