For hire transport systems have always presented a variety of hazzards to the shipper. The shippers entrust goods, or passengers entrust themselves to the transport operator. They also have to pay for the service provided. These situations provide many opportunities for abuse by the service provider.
The history of modern regulation begins with the growth of the railways. It was present for ocean and inland water transport. Many monopoly attitudes were inherited from earlier times. To obtain financing for the large investments for railways required many special privilidges. These were granted and monopo- listic situations arose. Very large amounts of money were made and lost. Safety was often sacrificed because of ignorence and greed.
An early example of a monopoly situation is when a roadway passed through private land. The landowner often erected a gate and collected a toll for passing the gate. If there was no alternative route, the toll collector could 'charge whatever the traffic would bear'.
These kinds of situations became unacceptable to the public. Government interveened and began to 'regulate' various aspects of the industry. Regu- lation essentially sets up rules that describe what an operator can and can't do. The period following the late 1800's spauned a great many regulations. The process continues with some of the most obsolete regulations being dropped and new ones introduced. It is impossible to list all the kinds of regulations in this short note. Current regulation are professed to be inthe public good.
In recent years there have been actions taken to 'deregulate', or 'reregulate' many parts of the transportation industry. These moves have tended to allow freer entry into the business, and are designed to promote competition. Other parts of the system have to contend with a variety of new regulations. Some are as simple as the allowable emissions from automobiles and the kind of fabric that can be used for aircraft seats.
The major regulations have to do with econcomics, and fair business practices, safety and security of passengers and goods. Too free competition can be runious and conducive to relaxation of safety and service standards. ¦0 Select ; or to APLie.
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