Deregulation ! . . indecision likely to keep it from happening (ttris year).

By James G. Manning Director, Transportation Services Western Wood Products Association

tion while motor carriers remain unconvinced that such action will be beneficial.

There is a paradox. Deregulation as seen by the nation's railroads will supposedly cure that industry's financial dilemma, while the deregulation of the motor carriers is designed to provide more competition to an industry that presently is in a very strong financial position. Deregulation therefore is designed to improve railroad profits on one hand while tightening trucker profits.

The American Trucking Association resists the easing of motor carrier regulation while both the Interstate Commerce Commission and some members of Congress are going through the motions of supporting deregulation for truckers.

An interesting sidelight on this issue is the attitude of Sen. Warren Magnuson (D-Wa.), a powerful florce in connection with surface transportation (as a result of his

Story at a Glance

long-time interest while serving as chairman of the Senate Commerce Committee). Magnuson recently told a labor meeting in Tacoma,Wa., that, "I am against truck deregulation." He said that he remains skeptical of "gypsy" truck operations if trucking deregulation does come about. In comparing the situation to deregulated airlines, he stated "very few individuals have the means of starting an airline, or even buying an airplane, but it is a different story in truck freight. All you have to do is buy a truck and get going." Magnuson does not expect to have to face a truck deregulation bill for some time.

The consensus of all involved in truck deregulation is that the railroad regulation situation must be concluded before the trucking industry deregulation process is furthered.

Both Houses of Congress are currently holding hearings on railroad deregulation. The only determination made to date is that the interested parties differ considerably on complete deregulation. Even within the railroad industry, there appears to be equally wide divergence as to whether or not total deregulation willwork. From a group of major shippers, strong support exists for deregulation. Among these are automobile, steel, aluminum, rubber and chemical firms. However, the National Industrial Traffic League, representing the total broad base of industry in the U.S., took action at a special spring meeting to oppose complete deregulation.

The western forest products industry is fundamentally supportive of deregulation, with reserva(Please turn to page 64)

Transportation lssue