For the past decade, some economists and, more recently, some politicians have taken the position that economic regulation of freight. transportation. should be reduced or eliminated. They suggest that removing regulated motor carriers from economic controls by the Interstate Commerce Commission will encourage new entrants into the industry, lower freight rates, and Improve service to Shippers. The railroad industry and the U.S. Department. of Transportation are advocating significant reductions in the economic regulation of railroad freight transportation. They argue that.the railroad industry suffers from overcapacity, that it is unable to respond to price initiatives of exempt motor and barge carriers of agricultural commodities, and that ICC regulations interfere with efficient management of rail operations.