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general Federal financial assistance, it seems inevitable that whatever aid program is developed for the Conrail carriers, whether it be Confac or something else, would eventually spread to all parts of the country. We think there are some better ways to resolve the railroad problem. We are working both on ideas and on cost figures, and will be discussing them in our comments on the preliminary plan.

INCREASED COAL DELIVERIES

Mr. CONTE. One thing we learned from the oil boycott is that, sooner or later, we are going to have to massively increase our dependence on coal. Are the railroads going to be able to handle the increased shipments as coal comes more into use? What is the ICC doing to assure that increased coal deliveries can be made?

Mr. STAFFORD. As I indicated earlier, we have very carefully considered the fact that our energy needs have become so critical as to indicate a future urgent dependence on coal. In fact, I might add that the study of coal as a first effort was not mere chance. Over 1 year ago, we recognized the urgency of the energy problem, and in contemplation of the need to move coal to market-especially from the new fields in the Montana area- -we began our entire effort with a look at coal. The report spells out the needs between now and 1980, as I stated earlier, and concludes that efforts must begin now to meet the needs of the demand period before us. It is indicated that rate increases alone may not be adequate to finance the large equipment investments which will be necessary to assure an adequate rail service for this commodity.

DEREGULATING CERTAIN RAIL SERVICE

Mr. CONTE. In testimony before this committee last year, Mr. Kahn suggested exempting certain rail traffic from regulation to encourage experimentation in providing rail service. Has the Commission followed up on this at all? What types of traffic could be deregulated? What type of experimentation would this encourage? Would such a step require legislation, or could this be undertaken at your discretion? Mr. KAHN. As I previously responded to Chairman McFall, the Commission has felt-and continues to believe-that it should have the power to exempt certain carriers or the transportation of certain commodities from the regulatory requirements of the Interstate Commerce Act. It does not now have such authority, unlike other adminis trative agencies, such as the Civil Aeronautics Board, which can relieve persons from regulatory restraints upon appropriate statutory findings. The Interstate Commerce Commission cannot effect such change absent legislation, and it previously submitted recommendations for remedial legislation. If the Interstate Commerce Act were amended accordingly. I believe there would be experimentation as to whether the elimination of regulation actually would be beneficial to the shippers and effect savings for the consumers. One instance might be the authorization to agricultural produce truckers to handle farm implements on return movements without obtaining operating authority from the ICC there for.

Mr. McFALL. Thank you very much, gentlemen.

Mr. STAFFORD. Thank you, Mr. Chairman. It has been a real pleasure.

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