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OCR Page 1 of 16current
EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
WASHINGTON, 25, D.C.
MAY 16 6 1945
My dear Mr. Latta:
The Congress has enacted H. R. 3038, "To amend section 409 of the
Interstate Commerce Act, as amended."
It is the sole purpose of the bill to extend for a period of nine
months from May 16, 1945, the provisions of section 409 of t he Inter-
state Commerce Act, as amended, which authorize freight forwarders
and common carriers by motor vehicle to operate under joint rates.
Such authority was originally granted for a period of eighteen months,
which expired on November 16, 1943. The period was extended for an ad-
ditional eighteen months or until May 16, 1945, by the Act of November
12, 1943.
At the time of the original enactment it was contemplated that
assembling and distribution rates would be made available to freight
forwarders by common carriers by motor vehicle and that with such
rates available it would not be necessary for freight forwarders and
common carriers by motor vehicle to operate under joint rates for a
period extending beyond the time of the original enactment. The ab-
normal conditions resulting from the war have tended to delay the
establishment of assembling and distribution rates, but it is still
hoped that a satisfactory solution of the problem can be worked out
within the period of the presently proposed extension.
The Bureau of the Budget has informally contacted the Interstate
Commerce Commission, the Office of Defense Transportation, and the War
Department, and while these agencies look with disfavor upon any greatly
extended continuance of a system of joint rates by the freight forwarders
and motor carriers, they, nevertheless, interpose no objection to the
nine months' extension proposed in the bill, since, in their opinion,
a discontinuance of the present joint rates would have a detrimental
effect in the operation of transportation facilities during the war
emergency.
1
I recommend that the bill be approved.
You will doubtless wish to call the President's attention to the
fact that the existing law expires today.
Very truly yours,
Mr. M. C. Latta,
a
The White House.
Director.
GOV
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