Interstate Commerce Act

UNITED STATES CODE
1988 EDITION
CONTAINING THE GENERAL AND PERMANENT LAWS
OF THE UNITED STATES, IN FORCE
ON JANUARY 3, 1989

Prepared and published under authority of Title 2, U .S . Code, Section 285b,
by the Office of the Law Revision Counsel of the House of Representatives

VOLUME NINETEEN
TITLE 48-TERRITORIES AND INSULAR POSSESSIONS
TO

TITLE 50L-WAR AND NATIONAL DEFENSE

UNITED STATES .
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1989

TITLE 49, APPENDIX-TRANSPORTATION
This Appendix consists of sections, of -former Title 49 that were not included in Title .49 as enacted
by Pub . L. 95-4 73 and Pub. L. .9-7-449, and certain laws relatect -to transportation that were enacted after Pub: L. 95-473. Sections from-former Title 49 retain the same section numbers in
this Appendix. For disposition of all sections , of former Title~:4.9, see,. Table at beginning of
Title 49, Transportat oni

Chap .

1.

2.

3.
4.
5.
6.
7.
8.

9.
10.
11 .

12 .
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29 .
30 .
31 .
32.

Sec.

Chap .

Sec.

Public Airports
Interstate Commerce Act, Part I ; Gen.
33.
2401
eral Provisions . and Railroad and
34.
Motor Carrier Safety 2501
Pipe Line Carriers
1
35.
Commercial Space Launch 2601
Legislation Supplementary to "Inter36.
Commercial Motor Vehicle Safety 2701
state Commerce Act" [Repealed,
Transferred, or Omitted] 41
CHAPTER I-INTERSTATE COMMERCE ACT,
Termination of Federal Control [RePART I ; GENERAL PROVISIONS AND RAILpealed or Transferred] 71
ROAD AND PIPE LINE CARRIERS
Bills of Lading
81
Inland Waterways Transportation 141
Sec1 to 23, 25 . Repealed.
171
Air Commerce
Safety. appliances, methods, and systems .
26.
Coordination of Interstate Railroad
(a) "Railroad" defined.
Transportation [Repealed] 250
(b) Order to install systems, etc., modifiInterstate Commerce Act, Part II ;
cation; negligence of railroad
otor Carriers [Repealed or-Trans(c) Filing report on rules, standards, and
ferred]
301
instructions ; time; modification.
(d) Inspection by Secretary-of TransporCivil Aeronautics [Repealed, Omitted,
tation ; personnel .
401
or Transferred]
(e) Unlawful use of system, etc .
Training of Civil Aircraft Pilots
(f) Report of failure of system, etc ., and
[Omitted or Repealed] 751
accidents .
Seizure and Forfeiture of Carriers
(g) P epa ties ;
Transporting, etc., Contraband Arti
(h) enl
enforcement.
781
cles
26a to 27 . Repealed .
Interstate Commerce Act, Part III ;
Water Carriers [Repealed] :.. . : 901
§ 1 . Repealed. Pub. L . 95-473, § 4(b), (c), Oct. 17, 1978,
Interstate Commerce Act, Part IV ;
92 Stat. 1466, 1470; Pub. L. 964258, § 3(b), June 3,
Freight Forwarders [Repealed] 1001
1980, 94 Stat . 427Federal Aid for Public Airport Deve1Section repealed subject to an exception related to
opment [Repealed or Transferred] ... .
1101
transportation of oil by pipeline . Section 402 of Pub.
International Aviation Facilities 1151
L. 95-607, which amended par . (14) of this section by
Development of Commercial Aircraft
adding subdiv. (b) and redesignating existing subdiv .
1181
[Omitted]
(b) as (c) subsequent to the repeal of this . section by
Medals of Honor for Acts7of Heroism:. .
1201
Pub . L. 95-473, was repealed by Pub. L 96-258. For disposition of this section in revised Title ::49, TransportaAirways Modernization [Repealed] 1211
tion, see Table_ at beginning of Title 49. See, also, notes
Interstate Commerce Act, Part V ;
following Table .
Loan Guaranties [Repealed] 1231
Prior to repeal, section read as follows :
Federal Aviation- Program 1301
Urban Mass .Transportation 1601
1 . Regulation in general ; car service; alteration of line
High-Speed Ground Transportation
[Omitted or Repealed] 1631
(1) Carriers subject to regulation
Department - of Transportation 1651
The provisions of this chapter shall apply to
Natural Gas Pipeline Safety 1671
common carriers engaged inAviation Facilities Expansion and Im(a) The transportation of` passengers or property
1701
wholly by railroad, or partly by railroad and partly by
provement
water when both are used under a common control,
Hazardous Materials Transportation
management, or arrangement . for a continuous carControl [Repealed] 1761
riage or shipment; or
Hazardous Materials Transportation . . . .: 1801•
(b) The transportation of oil . or other commodity,
National Transportation
Transportation Safety
Safety Beard .
1901
except water and except natural or artificial gas, by
Pipeline Safety
2001
Hazardous
pipe line, or partly by pipe line and partly by - railroad
Abatement of Aviation Noise 2101
or by water; or
Airport and Airway Improvement 2201
(c) Repealed. June 19, 1934, ch . 652, title VI,
$ 602(b), 48 Stat . 1102;
Commercial Motor Vehicles 2301

Page 521

§ 1

TITLE 49, APPENDIX-TRANSPORTATION

from one State or Territory of the United States, or
the District of Columbia, to any other State or Territory of the United States, or the District of Columbia,
or from one place in a Territory to another place in
the same Territory, or from any place in the United
States through a foreign country to any other place in
the United States, or from or to any place in the
United States to or from a foreign country, but only
insofar as such transportation takes place within the
United States.

Page 522

(4) Duty to furnish transportation and establish through
routes ; division of joint rates
It shall be the duty of every common carrier subject
to this chapter to provide and furnish transportation
upon reasonable request therefor, and to establish reasonable through routes with other such carriers, and
just and reasonable rates, fares, charges, and classifications applicable thereto ; and it shall be the duty of
common carriers by railroad subject to this chapter to
establish reasonable through routes with common carriers by water subject to chapter 12 of this Appendix,
(2) Transportation subject to regulation
and just and reasonable rates, fares, charges, and clasThe provisions of this chapter shall also apply to
sifications applicable thereto . It shall be the duty of
such transportation of passengers and property, but
every such common carrier establishing through
only insofar as such transportation takes place within . routes to provide reasonable facilities for operating
the United States, but shall not apply. :-such routes and to make reasonable rules and regulations with respect to their operation, and providing for
(a) To the transportation of passengers or property,
or to the receiving, delivering; storage, or handling of reasonable compensation to those entitled thereto ;
andein case of joint rates, fares, or charges, to estabproperty, wholly within one State and not shipped to
or from a foreign country from or to any place in the lish just, reasonable, and equitable divisions thereof,
United States as aforesaid, except as otherwise provid- which shall not unduly prefer or prejudice any of such
participating carriers .
ed in this chapter ;
(b) Repealed . June 19, 1934, ch . 652, title VI, (5) Just and reasonable charges ; applicability; criteria for de§ 602(b), 48 Stat . 1102.
termination
(c) To the transportation of passengers or property
All charges made for any service rendered or to
by a carrier by water where such transportation would be(a)
rendered
the transportation of passengers or
not be subject to the provisions of this chapter except property as • inaforesaid, or in connection therewith,
for the fact that such carrier absorbs, out of its port- shall be just and reasonable, and every unjust and unto-port water rates or out of its proportional through reasonable charge for such service or any part thereof
rates, any switching, terminal, lighterage, car rental,
is prohibited and declared to be unlawful . The provitrackage, handling, or other charges by a rail carrier
sions of
subdivision shall not apply to common
for services within the switching, drayage, lighterage, carriers
by this
railroad
. subject to this chapter .
or corporate limits of a port terminal or district.
(b) Each rate for any service rendered or to be rendered in the transportation of persons or property by
Definitions
any common carrier by railroad subject to this chapter
(a) The term "common carrier" as used in this chap- shall be just and reasonable. A rate that is unjust or
ter shall include all pipe-line companies ; express com- unreasonable is prohibited and unlawful . No rate
panies; sleeping-car companies ; and all persons, natu- which contributes or which would contribute to the
ral or artificial, engaged in such transportation as
going concern value of such a carrier shall be found to
aforesaid as common carriers for hire . Wherever the be unjust or unreasonable, or not shown to be just and
word "carrier" is used in this chapter it shall be held
reasonable, on the ground that such rate is below a
to mean "common carrier ." The term "railroad" as just or reasonable minimum for the service rendered
used in this chapter shall include all bridges, car
or to be rendered. A rate which equals or exceeds the
floats, lighters, and ferries used by or operated in con- variable costs (as determined through formulas prenection with any railroad, and also all the road in use
scribed by the Commission) of providing a service
by any common carrier operating a railroad, whether
shall be presumed, unless such presumption is rebutowned or operated under a contract, agreement, or
ted by clear and convincing evidence, to contribute to
lease, and also all switches, spurs, tracks, terminals, the going concern value of the carrier or carriers proand terminal facilities of every kind used or necessary
posing such rate (hereafter in this paragraph referred
in the transportation of the persons or property desigto as the "proponent carrier") . In determining variable
nated herein, including all freight depots, yards, and
costs, the Commission shall, at the request of the cargrounds, used or necessary in the transportation or derier proposing the rate, determine only those costs of
livery of any such property . The term "transporta- the carrier proposing the rate and only those costs of
tion" as used in this chapter shall include locomotives, the specific service in question, except where such specars, and other vehicles, vessels, and all instrumental- cific data and cost information is not available . The
ities and facilities of shipment or carriage, irrespective
Commission shall not include in variable cost any exof ownership or of any contract, express or implied,
penses which do not vary directly with the level of
for the use thereof, and all services in connection with service provided under the rate in question . Notwiththe receipt, delivery, elevation, and transfer in transit,
standing any other provision of this chapter, no rate
ventilation, refrigeration or icing, storage, and hanshall be found to be unjust or unreasonable, or not
.
The
term
"person"
as
dling of property transported
shown to be just and reasonable, on the ground that
used in this chapter includes an individual, firm, co- such rate exceeds a just or reasonable maximum for
partnership, corporation, company, association, or
the service rendered or to be rendered, unless the
joint-stock association; and includes a trustee, receiver,
Commission has first found that the proponent carrier
assignee, or personal representative thereof .
has market dominance over such service. A finding
that a carrier has market dominance over a service
(b) For the purposes of sections 5, 12(1), 20,
304(a)(7), 310, 320, 904(b), 910, and 913 of this Appen- shall not create a presumption that the rate or rates
dix, where reference is made to control (in referring to for such service exceed a just and reasonable maxia relationship between any person or persons and anmum. Nothing iri this paragraph shall prohibit a rate
increase from a level which reduces the going concern
other person or persons), such reference shall be convalue of the proponent carrier to a level which construed to include actual as well as legal control,
whether maintained or exercised through or by reason
tributes to such going concern value and is otherwise
of the method of or circumstances surrounding organi- just and reasonable . For the purposes of the preceding
sentence, a rate increase which does not raise a rate
zation or operation, through or by common directors,
above the incremental costs (as determined through
officers, or stockholders, a voting trust or trusts, a
formulas prescribed by the Commission) of rendering
holding or investment company or companies, or
through or by any other direct or indirect means ; and the service to which such rate applies shall be presumed to be just and reasonable .
to include the power to exercise control .

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Y

Page 523

TITLE 49, APPENDIX-TRANSPORTATION

§1

(c) As used in this chapter, the termsfruit ; to employees on sleeping cars, express cars, and
(i) "market dominance" refers to an absence of efto linemen of telegraph and telephone companies ; to
fective competition from other carriers or modes of
railway mail-service employees and persons in charge
transportation, for the traffic or movement to which of the mails when on duty and traveling to and from
a rate applies; and
duty, and all duly accredited agents and officers of the
(ii) "rate" means any rate or charge for the trans- United States Postal Service and the Railway Mail
portation of persons or property .
Service and post-office inspectors while traveling on
(d) Within 240 days after February 5, 1976, the Com- official business, upon the exhibition of their credenmission shall establish, by rule, standards and proce- tials; to customs inspectors, and immigration officers ;
dures for determining, in accordance with section to newsboys on trains, baggage agents, witnesses at15(9) of this Appendix, whether and when a carrier
tending any legal investigation in which the common
possesses market dominance over a service rendered or carrier is interested, persons injured in wrecks and
to be rendered at a particular rate or rates . Such rules physicians and nurses attending such persons: Provid
shall be designed to provide for a practical determinaed, That this provision shall not- .be construed to protion without administrative delay . The Commission hibit the interchange -of passes for the officers, agents,
shall solicit and consider the recommendations of the and employees of common carriers, -and their families ;
Attorney General and of the Federal Trade Commis- nor to prohibit any common carrier-from carrying passion in the course of establishing such rules .
sengers free with the object of providing relief in cases
of general epidemic, pestilence, or other calamitous
(5%) Exchange of services
: And provided further, That this provision
Nothing in this Act shall be construed to prevent visitation
shall not be construed to prohibit the privilege of
any common carrier subject to this Act from entering
into or operating under any contract with any tele- passes or franks, or the exchange thereof with each
other, for the officers, agents, employees, and their
phone, telegraph, or cable company, for the exchange
families of such telegraph, telephone, and cable lines,
of their services.
and the officers, agents, employees and their families
(6) Classification of property for transportation ; regulations of other common carriers subject to the provisions of
and practices; demurrage , charges
this chapter : Provided further,, That the term "emIt is made the duty of all common carriers subject to ployees'' as used in this paragraph shall include furthe provisions of this chapter to . establish, observe, loughed, pensioned, and- superannuated -employees,
and enforce just and reasonable classifications of persons who have become disabled_ or infirm in the
property for transportation, with-reference to ..which service of any such common carrier, and the remains
rates, tariffs, regulati ns, or practices are or may be of a person killed in the employment of a carrier and
made or prescri
d just and reasonable regula- exemployees traveling for the purpose of entering the
tions and practi
affecting classifications ; rates, or service of any such common carrier ; and- the _term
tariffs, the issu ce, form, and- substance of-tickets, re-- "families" as used in this paragraph shall include the ..
ceipts, and bills of lading, the manner and method of
families of those persons named in this proviso, also
presenting, marking, packing:-and delivering property the families of persons - killed .-and the-widomwiduring
for transportation, the facilities for transportation, widowhood and minor children during-minority of per
the carrying of personal, sample, and excess baggage, - sons who died, while in the service of any such
and all other matters relating -to or connected -with the
common carrier . Any common carrier : violating this
receiving, handling, transporting, storing, and .-delivery provision shall be deemed guilty of a misdemeanor and
of property subject to the provisions of this chapter for each offense, on- conviction, shall pay to- the
which may be necessary or proper to secure the safe United States a penalty of not less than $100 nor more
and prompt receipt, handling, transportation, and de- than $2,000, and any person, other than-the persons
livery of property subject to the provisions of this excepted in- this provision, who uses any such interchapter upon just and reasonable terms, and every state free ticket, free pass, or free- transportation-shall
unjust and unreasonable classification, regulation, and be subject to a like penalty. Jurisdiction of offenses
practice is prohibited and declared to be unlawful . De- under this provision shall be the same as that .providmurrage charges shall be computed, and rules and reged for offenses in sections 41- to .43 of this Appendix ..
ulations relating to such charges shall be established,
(8)
Transportation of commodity manufactured or produced
in such a manner as to fulfill the national needs with
by railroad :forbidden
respect to (a) freight car utilization and distribution,
It shall be unlawful for any railroad company to
and (b) maintenance of an adequate freight car supply
transport from any State, Territory, : or the District of
available for transportation of property .
Columbia, to any other State, Territory, or the Dis(7) Free transportation for passengers .prohibited; exceptions ; trict of Columbia, or to any foreign country, any artipenalty
cle or commodity, other than timber and the manufacNo common carrier subject - to the provisions of this tured products thereof, manufactured, mined, or prochapter, shall, directly or indirectly, issue or give any
duced by it, or under its authority, or which it may
interstate free ticket, free pass, or free transportation
own in whole or in part, or in which it may have any- .
for passengers ; except to its employees, its officers, interest, direct or indirect, except such articles or com=
time inspectors, surgpons, - physicians, and attorneys at :- modities as may be necessary and intended for its use
law, and the families of any of the foregoing ; to-,the in the conduct of its business as a common carrier .
executive officers, general .chairmen;- . and counsel_ of
employees' organizations when such organizations are (9) Switch connections and tracks
Any common carrier subject to the provisions of this
authorized and designated to represent employees in
accordance . with the provisions of the Railway - Labor chapter, upon application of any lateral, branch line
Act (45 U.S .C. 151 et. seq .] ; to ministers of religion, of railroad, or of any shipper tendering interstate traffic for transportation, shall construct, maintain, and
traveling secretaries of railroad Young Men'ss Christian Associations, inmates of hospitals and charitable operate upon reasonable terms a switch connection
and eleemosynary institutions, land persons exclusively with any such lateral, branch line of railroad, or priengaged in charitable and eleemosynary work ; to indi- vate side track which may be constructed to connect
gent, destitute and homeless persons, and to such per- with its railroad, where such connection is reasonably
sons when transported by charitable societies or hospi- practicable and can be put in with safety and will furtals, and the necessary agents employed in such trans- nish sufficient business to justify the construction and
portation ; to inmates of the National Homes or State maintenance of the same ; and shall furnish cars for
the movement of such traffic to the .best of its ability
Homes for Disabled Volunteer Soldiers, and of Soldiers' and Sailors' Homes, including those about to without discrimination in favor of or against any such
enter and those returning home after discharge ; to shipper . If any common carrier shall fail to install and
necessary caretakers of livestock, poultry, milk, and operate any such switch or connection as aforesaid, on

§1

TITLE 49, APPENDIX-TRANSPORTATION

Page 524

application therefor in writing by any shipper or time their rules and regulations with respect to car
owner of such lateral, branch line railroad, such ship- service, and the Commission may, in its discretion,
per or owner of such lateral branch line of railroad,
direct that such rules and regulations shall be incorpomay make complaint to the Commission, as provided rated in their schedules showing rates, fares, and
in section 13 of this Appendix, and the Commission
charges for transportation, and be subject to any or all
shall hear and investigate the same and shall deter- of the provisions of this chapter relating thereto .
mine as to the safety and practicability thereof and
justification and reasonable compensation therefor, (14) Establishment by Commission of rules, etc ., as to car
service ; procedures applicable
and the Commission may make an order, as provided
in section 15 of this Appendix, directing the common
(a) it is the intent of the Congress to encourage the
carrier to comply with the provisions of this section in purchase, acquisition, and efficient utilization of
accordance with such order, and such order shall be
freight cars. In order to carry out such intent, the
enforced as hereinafter provided for the enforcement Commission may, upon complaint of an interested
of all other orders by the Commission, other than
party or upon its own initiative without complaint,
orders for the payment of money .
and after notice and an opportunity for a hearing, establish reasonable rules, regulations, and practices
(10) "Car service" defined
with respect to car service by common carriers by railThe term "car service" in this chapter shall include
the use, control, supply, movement, distribution, ex- roadsation
subject be
to paid
thisfor
chapter,
(I) the compenthe useincluding
of any locomotive,
freight
change, interchange, and return of locomotives, cars, car, toother
or
the
ent
n
any
vehicle,
terms
of
any
and other vehicles used in the transportation of proptract,
arrangement for
use of
erty, including special types of equipment, and the
ocomotive is us
otherr vehicle
or n
the carrier
supply of trains, by any carrier by railroad subject to locomotive
by which it iss used
used
whether
not owned by ananthis chapter .
other carrier, shipper, or third party), and (ill) the
penalties or other sanctions for nonobservance of such
(11) Duty to furnish car service ; rules and regulations
It shall be the duty of every carrier by railroad sub- rules, regulations, or practices . In determining the
ject to this chapter to furnish safe and adequate car rates of compensation, to be paid for each type of
service and to establish, observe, and enforce just and freight car, the Commission shall give consideration to
reasonable rules, regulations, and practices with re- the transportation use of each type of freight car, to
spect to car service; and every unjust and unreason- the national level of ownership of each such type of
able rule, regulation, and practice with respect to car freight car, and to other factors affecting the adequacy of the national freight car supply. Such compensaservice is prohibited and declared to be unlawful .
tion shall be fixed on the basis of the elements of own(12) Distribution of coal cars ; failure to prorate; penalty ; ap- ership expense involved in owning and maintaining
- plicability of unit-train and non-unit-train service; deft- each such type of freight car, including a fair return
nition
on the cost of such type of freight car (giving due conIt shall also be the duty of every carrier by railroad sideration to current costs of capital, repairs, materito make just and reasonable distribution of cars for als, parts, and labor) . Such compensation may be intransportation of coal among the coal mines served by creased by any incentive element which will, in the
it, whether located upon its line or lines or . customari- judgment of the Commission, provide just and reasonly dependent- upon it for car supply . During any period able compensation to freight car owners, contribute to
when the supply of cars available for such service does sound car service practices (including efficient - utilizanot equal the requirements of such mines it shall be tion and distribution of cars), and encourage the acthe duty of the carrier to maintain and apply just and
quisition and maintenance of a car supply adequate to
reasonable ratings of such mines and to count each meet the needs of commerce and the national defense.
and every car furnished to or used by any such mine
The Commission shall not make any incentive element
for transportation of coal against the mine . Failure or applicable to any type of freight car if the Commisrefusal so to do shall -be unlawful, and in respect of
sion finds that the supply of such type of freight car is
each car not so counted shall be deemed a separate ofadequate. The Commission may exempt such incentive
fense, and the carrier, receiver, or operating trustee so element from the compensation to be paid by any carfailing or refusing shall forfeit to the United States
rier or group of carriers if the Commission finds that
the sum of $100 for each offense, which may be recov- such an exemption is in the national interest .
ered in a civil action brought by the United States. In
(b) If the Commission finds, upon the petition of an
applying the provisions of this paragraph, unit-train interested party and after notice and a hearing on the
service and non-unit-train service shall be considered
record, that a common carrier by railroad subject to
separate and distinct classes of service, and a distinc- this part has materially failed to furnish safe and adetion shall be made between these two classes of service
quate car service as required by paragraph (11) of this
and between the cars used in each class of service ; section, the Commission may require such carrier to
questions of the justness and reasonableness of, or dis- provide itself with such facilities and equipment as
crimination or preference or prejudice or advantage or may be reasonably necessary to furnish such service, if
disadvantage in, the distribution of cars shall be deter- the evidence of record establishes, and the Commismined within each such class and not between them,
sion affirmatively finds, thatnotwithstanding any other provision of section 1, 2, or
(i) the provision of such facilities or equipment
3 of this Appendix, and of section 41, 42, or 43 of this
will not materially and adversely affect the ability of
Appendix. Coal cars supplied by shippers or receivers
such carrier to otherwise provide safe and adequate
shall not be considered a part of such carrier's fleet or
transportation services ;
otherwise counted in determining questions of distri(ii) the expenditure required for such facilities or
bution or car count under this paragraph or any proviequipment, including a return which equals such
sion of law referred to in this section . As used in this
carrier's current cost of capital, will be recovered ;
paragraph, the term "unit-train service", means the
and
movement of a single shipment of coal of not less than
(iii) the provision of such facilities or equipment
4,500 tons, tendered to one carrier, on one bill of
will
not impair the ability of such carrier to attract
lading, at one origin, on one day, and destined to one
adequate
capital.
consignee, at one plant, at one destination, via one
(c) It shall be unlawful for any common carrier by
route.
railroad or express company, subject to this chapter,
(13) Rules and regulations as to car service to be filed, etc. to make or enter into any contract, agreement, or arThe Commission is authorized by general or special rangement with any person for the furnishing to or on
orders to require all carriers by railroad subject to this behalf of such carrier or express company of protecchapter, or any of them, to file with it from time to tive service against heat or cold to property transport-

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Page 525

TITLE 49, APPENDIX-TRANSPORTATION

§1

ed or to be transported in interstate or foreign com- the Commission may, upon the same procedure as promerce, or for any such carrier or express company to
vided in paragraph (15) of this section, make such just
continue after April 1, 1941, as a party to any such and reasonable directions with respect to the hancontract, agreement, or arrangement unless and until dling, routing, and movement of the traffic available
such contract, agreement, or arrangement has been to such carrier and its distribution over such carrier's
submitted to and approved by the Commission as just,
lines, as in the opinion of the Commission will best
reasonable, and consistent with the public interest : promote the service in the interest of- the public and
Provided, That if the Commission is unable to make the commerce of the people subject to the following
its determination with respect to any such contract, conditions:
agreement, or arrangement prior to said date, it may
(A) Such direction shall be effective for no longer
extend it to not later than October 1, 1941 .
than 60 days unless extended by the Commission for
cause shown for an additional designated period not
(15) Powers of Commission in case of emergency
to exceed 180 days .
Whenever the Commission is of opinion that short(B) No such directions shall be issued that would
age of equipment, congestion of traffic, or other emercause a carrier to operate in violation of the Federal
gency requiring immediate action exists in any section
Railroad Safety Act of 1970 [45 U .S .C. 431 et seq .] or
of the country, the Commission shall have, and it is
that would substantially impair the ability of the
given, authority, either upon complaint or upon its
carrier so directed to serve adequately its own paown initiative without complaint, at once, if it so
trons or to meet its outstanding common carrier oborders, without answer or other formal pleading by
ligations .
the interested carrier or carriers, and with or without
notice, hearing, or the making or filing of a report, ac(C) The directed carrier shall not, by reason of
cording as the Commission may determine : (a) to sussuch Commission direction, be deemed to have aspend the operation of any or all rules, regulations, or
sumed or to become responsible for the debts of the
practices then established with respect to car service
other carrier.
for such time as may be determined by the Commis(D) The directed carrier shall hire employees of
sion; (b) to make such just and reasonable directions
the other carrier to the extent such employees had
with respect to car service without regard to the ownpreviously performed the directed service for the
ership as between carriers of locomotives, cars, and
other carrier, and, as to such employees as shall be
other vehicles, during such emergency as in its opinion
so hired, the directed carrier shall be deemed to
will best promote the service in the interest of the
have assumed all existing employment obligations
public and the commerce of the people, upon such
and practices of the other carrier relating thereto,
terms of compensation as between the carriers as they
including, but not limited to, agreements governing
may agree upon, or, in the event of their disagreerate of pay, rules and working conditions, and all
ment, as the Commission may after subsequent hearemployee protective conditions commencing with
ing find to be just and reasonable ; (c) to require such
and for the duration of the direction .
joint or common use of terminals, including main-line
(E) Any order of the Commission entered pursuant
track or tracks for a reasonable distance outside of
to this paragraph shall provide that if, for the
such terminals, as in its opinion will best meet the
period of its effectiveness, the cost, as hereinafter
emergency and serve the public interest, and upon
defined, of handling, routing, and moving the traffic
such terms as between the carriers as they may agree
of another carrier over the other carrier's lines of
upon, or, in the event of their disagreement, as the
road shall exceed the direct revenues therefor, then
Commission may after subsequent hearing find to be
upon request, payment shall be made to the directed
just and reasonable ; and (d) to give directions for prefcarrier, in the manner hereinafter provided and
erence or priority in transportation, embargoes, or
within 90 days after expiration of such order, of a
movement of traffic under permits, at such time and
sum equal to the amount by which such cost has exfor such periods as it may determine, and to modify,
ceeded said revenues. The term "cost" shall mean
change, suspend, or annul them . In time of war or
those expenditures made or incurred in or attributathreatened war the President may certify to the Comble to the operations as directed, including the
mission that it is essential to the national defense and
rental or lease of necessary equipment, plus an apsecurity that certain traffic shall have preference or
propriate allocation of common expenses, overheads,
priority in transportation, and the Commission shall,
and a reasonable profit . Such cost shall be then curunder the power herein conferitd, direct that such
rently recorded by the carrier or carriers in such
preference or priority be afforded.
manner and on such forms as by general order may
be prescribed by the Commission and shall be sub(16) Rerouting of traffic on failure of initial carrier to serve
mitted to and subject to audit by the Commission .
public
The Commission shall certify promptly to the Secre(a) Whenever the Commission is of opinion that any
tary of the Treasury the amount of payment to be
carrier by railroad subject to this chapter is for any
made to said carrier or carriers under the provisions
reason unable to transport the traffic offered it so as
of this paragraph . Payments required to be made to
properly to serve the public, it may, upon the same
a carrier under the provisions of this paragraph
procedure as provided in paragraph (15) of this secshall be made by the Secretary of the Treasury from
tion, make such just and reasonable directions with refunds hereby authorized to be appropriated in such
spect to the handling, routing, and movement of the
amounts as may be necessary for the purpose of cartraffic of such carrier and its distribution over other
rying out the provisions hereof .
lines of roads, as in the opinion of the Commission will
best promote the service in the interest of the public
(17) Directions oofCommission
Commission as to car service ; disobedience;
and the commerce of the people, and upon such terms
rights
as between the carriers as they may agree upon, or, in
(a) The directions of the Commission as to car servthe event of their disagreement, as the Commission
may after subsequent hearing find to be just and rea- ice and to the matters referred to in paragraphs (15)
and (16) of this section may be made through and by
sonable.
(b) Whenever any carrier by railroad is unable to such agents or agencies as the Commission shall designate and appoint for that purpose . It shall be the duty
transport the traffic offered it because(1) its cash position makes its continuing operation of all carriers by railroad subject to this chapter, and
of their officers; agents, and employees, to obey strictimpossible ;
(2) it has been ordered to discontinue any service ly and conform promptly to such orders or directions
of the Commission, and in case of failure or refusal on
by a court; or
(3) it has abandoned service without obtaining a the part of any carrier, receiver, or operating trustee
certificate from the Commission pursuant to this to comply with any such order or direction such carrier, receiver, or trustee shall be liable to a penalty of
section;

§ Ia

TITLE 49, APPENDIX-TRANSPORTATION

Page 526

not less than $100 nor more than $500 for each such and with such documentation as the Commission shall
offense and $50 for each and every day of the continuprescribe . The Commission mayance of such offense, which shall accrue to the United
(i) issue such a certificate in the form requested by
States and may be recovered in a civil action brought
the applicant ;
by the United States : Provided, however, That nothing
(ii) issue such a certificate with modifications in
this chapter
of its or shall
the right
ii a
such form and subject to such terms and conditions
State, in the exercise
its police power, to require
as are necessary in the public interest; or
just and reasonable freight and passenger service for
intrastate business, except insofar as such require(iii) refuse to issue such a certificate .
ment is inconsistent with any lawful order of the Com(c) Upon petition or upon its own initiative, the
mission made under the provisions of this . chapter and
Commission may authorize any carrier by railroad
except as otherwise provided in this chapter .
subject to this chapter to extend any of its lines of
(b) It shall be unlawful for any person to offer or
railroad or to take any other action necessary for the
give or cause or procure to be offered or given, directly
provision of adequate, efficient, and safe facilities for
or indirectly, any money, property, or thing of value,
the performance of such carrier's obligations under
or bribe in any other form whatsoever, to any person
this chapter . No authorization shall be made unless
acting for or employed by any carrier by railroad subthe Commission finds that the expense thereof will
ject to this part with intent to influence his decision
or action, or because of his decision or action, with renot impair the ability of such carrier to perform its
spect to the supply, distribution, or movement of cars
obligations to the public .
or other vehicles, or vessels, used in the transportation
(d) Carriers by railroad subject to this chapter may,
of property. It shall be unlawful for any person acting
notwithstanding this paragraph and section 5 of this
for or employed by any carrier by railroad subject to
Appendix, and without the approval of the Commisthis chapter to solicit, accept, or receive, directly or insion, enter into. contracts, agreements, or other ardirectly, any money, property, or thing of value, or
rangements for the point (joint) ownership or joint
bribe in any other form whatsoever, .with intent to be
use of spur, industrial, . team, switching; or -side tracks
influenced thereby in his decision or action, or because
of his decision or action, with respect to the supply,
The authority granted to the Commission under this
distribution, or movement of cars or other vehicles, or
paragraph shall not extend to the construction, acquivessels, used in the transportation of property . Any
sition, or operation of spur, industrial, team, switchperson who violates the provisions of this subparaing, or side tracks if- such tracks-are located or intendgraph shall be deemed guilty of a misdemeanor and be
ed to be located entirely within one State, and shall
subject for each offense to a fine of not more than
not apply to any street, suburban, or interurban elec$1,000, or imprisonment in the penitentiary for a term
tric railway which is not operated as .part of a general .
of not more than two years, or both such fine and imsystem of rail transportation .
prisonment.
(e) Any construction or operation which is contrary
(18) Extension or addition of lines; certificate required ; proto
any provision of this - paragraph, of any regulations
cedures applicable to application for certificate; petition
promulgated under this paragraph, or of any terms
or initiative of Commission ; agreements for ownership-or
and conditions of an applicable certificate, may be enuse of spur, etc ., tracks; limitations on authority of Comjoined by an appropriate district court of the United
mission; injunctionsi and penalty for violations
States in a civil action commenced and maintained by
(a) No carrier by railroad subject to this chapter
the United States, the Commission, . or the . attorney
shall(I) undertake the extension of any of its lines of
general or the transportation regulatory body o f . an
railroad or the construction of any additional line of
affected State or area. Such a court may impose a civil
railroad;
penalty of not to exceed $5,000 on each person who
(Ii) acquire or operate any such extension or any
knowingly authorizes, consents to, or permits any vio;
or
such additional line
(iii) engage in transportation over, or by means of, lation of this paragraph or of : the conditions of a certificate issued under this paragraph.
any such extended or additional line of railroad,
unless such extension or additional line of railroad is_
(Feb. 4, 1887, ch. 10* pt . I,..§ 1, 24 Stat...379; June 29,
described in and covered by a certificate which is
1906, ch . 3591, § 1, 34 Stat. 584 ; Apr . 13, 1908, ch . 143,
issued by the Commission and which declares that the
35 Stat. 60; June 18, 1910, ch . 309, § 7, 36 Stat. 544 ; .
present or future public convenience and necessity reMay 29, 1917, ch. 23, 40 Stat . 101 ; Feb. 28, 1920, ch . 91,
quire or will be enhanced by the construction and op-400-403, 41 Stat. 474-479 ; June 19, 1934, ch. 652,
H400-403,
eration- of such .extended or-additional line o£ railroad-- § 602(b), 48 Stat. 1102 ; . Aug. . 9, 19a5, . ch.. 498, § 1, .49
Upon receipt of an . application for . such a - certificate,
. h_ 722,_
I,
§), .( 4
the Commission shall (A) . send a .copy of the applica- .Stat . 543 ; Sept . 18, ..1
4, 54- Stat. . 899-901 ; . June 24, 1948' . ch. 622, 62 .Stat_602; ' ,
tion to the chief executive officer of each State that
Aug . 2, 1949, ch. 379 ; § 1, 63 Stat. 485 June 27, 1952,
would be directly affected by the construction or opercit 477,. title IV, . § 402(g),. .66 Stat._277 ; .Aug. - 12,1958,
ation of such extended or additional line, (B) send an
accurate and understandable summary of such appli- Pub . L . 85-625, -§ .3,.72' Stat. 570; - May 26,. 1966, Pub--L.
cation to a newspaper of general circulation in such af89-430, § 1, 80, Stat. 168 ; Jan. 2, 1974 ; `Pub. L. 93-236 ;
fected area or areas with a request that such informa
title VI, § 601(e), 87 Stat. 1021; Feb. 5, 1976, Pub. L.
tion be made available to the general public, (C) cause
94-210, title - II, §§ 202(a), (b), 211, 212(a), title III,
a copy of such summary to be published in the Feder§ 310, title VIII, § 801, 90 Stat . 34, 35, 46, 60, 125 ; Nov.
al Register, (D) take such other steps as it deems rea8, 1978, Pub . L . 95-607, title IV, § 402, 92 Stat . 3067 .)
sonable and effective to publicize such application,
and (E) indicate in such transmissions and publications that each interested person is entitled to recommend to the Commission that it approve, disapprove,
or take any other specified action with respect to such
application.
(b) The Commission shall establish, and may from
time to time amend, rules and regulations (as to hearings and other matters) to govern applications for, and
the issuance of, any certificate required by subdivision
(a) . An application for such a certificate shall be submitted to the Commission in such form and manner

§ la. Repealed . Pub. L. 95-473, § 4(b), (c), Oct. 17,
1978, 92 Stat . 1466, 1470
Section repealed subject to an exception related to
transportation of oil by pipeline . For disposition of
this section in revised Title 49, Transportation, see
Table at beginning of Title 49 . See, also, notes following Table.
Prior to repeal, section read as follows:

Page 527

TITLE 49, APPENDIX-TRANSPORTATION

§ la

§ la. Abandonment and discontinuance of rail service
end of such 60-day period . If no such investigation Is
the Commission shall issue such a certificate,
(1) Authorization pursuant to certification by Commission ; ordered,
accordance with this section, at the end of such 60application and notice of intent required in accordance in
period . If such an investigation is ordered, the
with rules and regulations ; statutory provisions applica- day
Commission shall order a postponement, in whole or
ble; limitation on authority of Commission
part, in the proposed effective date of the abandonNo carrier by railroad subject to this chapter shall in
ment
or discontinuance . Such postponement shall be
abandon all or any portion of any of its lines of railfor
such
reasonable period of time as is necessary to
road (hereafter in this section referred to as "abansuch investigation. Such an investigation
donment") and no such carrier shall discontinue the complete
may include, but need not be limited to, public hearoperation of all rail service over all or any portion of
at any location reasonably adjacent to the line of
any such line (hereinafter referred to as "discontinu- ings
involved in the abandonment or
ance"), unless such abandonment or discontinuance is railroad
ante application, pursuant to rules and regulations
reglations of
in and covered by a certificate which is
Commission . Such a hearing may be held upon the
issued by the Commission and which declares that the the
of any interested party or upon the Commispresent or future public convenience and necessity re- request
quire or permit such abandonment or discontinuance . lion's own initiative . The burden of proof as to public
An application for such a certificate shall be submit- convenience
and necessity shall be upon the applicant
ted to the Commission, together with a notice of for a certificate of abandonment or discontinuance .
intent to abandon or discontinue, not less than 60 days (4) Issuance of certificate ; contents ; taking effect of abandonprior to the proposed effective date of such abandonment or discontinuance
ment or discontinuance, and shall be in accordance
The Commission shall, upon an order with respect to
with such rules and a
manner,
content,, and documentation as regulations the Commission
may each application for a certificate of abandonment or
from time to time prescribe. Abandonments and dis- discontinuance(a) issue such certificate in the form requested by
continuances shall be, :governed by the provisions of
the applicant if it finds that such abandonment or
this section or by the provisions of any other applicadiscontinuance is consistent with the public convenble Federal statute, notwithstanding any inconsistent
ience and necessity . In determining whether the proor contrary - provision in any State law or constitution,
posed abandonment is consistent with the public
or any decision, order, or procedure of any State adconvenience and necessity, the Commission shall
ministrative or judicial body . The authority granted to
consider whether there will be a serious adverse
the Commission under this section shall not apply to
impact on rural and community development by
(a) abandonment or discontinuance with respect to
such abandonment or discontinuance ;
spur, industrial, team switching, or side tracks if such
(b) issue such certificate with modifications in
tracks are located entirely within one State, or (b) any
such form and subject to such terms and conditions
street, suburban, or interurban electric railway which
as are required, in the judgment of the Commission,
is not operated as part - of a general system of rail
by the public convenience and ,necessity; or
transportation .
refuse to issue such certificate .
(2) Affidavit accompanying notice of intent; contents of affi- Each(c)such
certificate which is issued by the Commisdavit and notice of intent
sion
shall
contain provisions for the protection of the
(a) Whenever a carrier submits to the Commission a interests of
employees . Such provisions shall be at
notice of intent to abandon or discontinue, pursuant least as beneficial to such interests as provisions estabto paragraph (1) of this section, such carrier shall lished pursuant to section 5(2)(D of this Appendix and
attach thereto an affidavit certifying that a copy of
pursuant to section 565 of title 45 . If such certificate is
such notice (I) has been sent by certified mail to the
issued without an investigation pursuant to paragraph
chief executive officer of each State that would be di- (3) of this section, actual abandonment or discontinurectly affected by such abandonment or discontinumay take effect, in accordance with such certifiance, (ii) has been posted in each terminal and station ance
cate, 30 days after the date of issuance thereof . If such
on any line of railroad proposed to be so abandoned or
a certificate is issued after an investigation pursuant
discontinued, (iii) has been published for 3 consecutive
to such paragraph (3), actual abandonment or disconweeks in a newspaper of general circulation in each
tinuance may take effect, in accordance with such cercounty in which all or any part of such line of railroad tificate, 120 days after the date of issuance thereof.
i s located, and (iv) has been mailed, to the extent practicable, to all shippers who have made significant use
(5) Diagram of transportation system directly or indirectly
(as determined by the Commission in its discretion) of
operated by carrier by railroad subject to this chapter,
such line of railroad during the 12 months preceding
preparation, submission to Commission, and publication;
such submission .
contents; amendments; opposition to issuance or denial
(b) The notice required under subdivision (a) of this
of certificate limited by diagram or amended diagram
paragraph shall include (I) an accurate and under(a)
carrier by railroad subject to this chapter
standable summary of the carrier's application for a shall,Each
withinby180thedays
after thepursuant
date oftopromulgation
certificate of abandonment or discontinuance, togeth- of regulations
Commission
this secer with the reasons therefor, and (ii) a statement indition,
prepare,
submit
to
the
Commission,
and
publish,
cating that each interested person is entitled to recom- a full and complete diagram of the transportation
mend to the Commission that it approve, disapprove,
operated, directly or indirectly, by such carrier .
or take any other specified action with respect to such system
Each
such
diagram which shall include a detailed deapplication . scription of each line of railroad
which is "potentially
(3) Investigation by Commission ; prerequisites ; effect ; scope; subject to abandonment", as such term is defined by
procedures
the Commission. Such term shall be defined by the
During the 60-day period between the submission of
Commission by rules and such rules may include
a completed application for g certificate of abandon- standards which vary by region of the Nation and by
ment or discontinuance pursuant to paragraph (1) of
railroad or group of railroads . Each such diagram
this section and the proposed effective date of an shall also identify any line of railroad as to which
abandonment or discontinuance, the Commission such carrier plans to submit an application for a cershall, upon petition, or may, upon its own initiative, tificate of abandonment or discontinuance in accordcause an investigation to be conducted to assist it in
ance with this section . Each such carrier shall submit
to the Commission and publish, in accordance with
determining what disposition to make of such application . An order to the Commission to implement the regulations of the Commission, such amendments to
preceding sentence must be issued and served upon
such diagram as are necessary to maintain the accuraany affected carrier not less than 5 days prior to the
cy of such diagram.

§ la

TITLE 49, APPENDIX-TRANSPORTATION

Page 528

(b) The Commission shall not issue a certificate of the rail properties involved exceed the revenues attribabandonment or discontinuance with respect to a line utable to the line of railroad or the rail service inof railroad if such abandonment or discontinuance is volved .
opposed by(i) a shipper or any other person who has made (8) Statutory provisions applicable to petitions filed and
significant use (as .determined by the Commission in
pending prior to February 5, 1976, or prior to promulgaits discretion) of such line of railroad during .the 12tion of regulations by Commission
month period preceding the submission of an-appliPetitions for abandonment or discontinuance which
cable application under paragraph (1) of this sec- were filed and pending before-the Commission as of
tion; or
February 5, 1976, or prior to the promulgation-by-the
(ii) a State, or any political subdivision of a State, Commission of regulations required under-this section
if such line of railroad is located, in whole or in part, shall be governed by the provisions of section 1 of this
within such State or political subdivision ; _
title which were in effect on February 5, 1976, except
unless such line or railroad has been identified and de- that paragraphs (6) and (7) of this section shall be apscribed in a diagram or in an amended diagram which plicable to such petitions .
was submitted to the Commission under subdivision
(a) of this paragraph at least 4 months prior to the (9) Injunctive relief ; jurisdiction; parties; civil penalty
date of submission of an application for such certifiAny abandonment or discontinuance which is concate .
trary to any provision of this section, of any regula(6) Findings by Commission of public convenience and neces- tion promulgated under this section, or of any terms
sity permitting abandonment or discontinuance ; publica- and conditions of an applicable certificate, may be ention in Federal Register, further findings of offers of fi- joined by an appropriate district court of the United
nancial assistance postponing issuance of certificate of States in a civil action commenced and maintained by
abandonment or discontinuance ; duration of postpone- the United States, the Commission, or the attorney
ment
general or the transportation regulatory body of an
(a) Whenever the Commission makes a finding, in affected State or area . Such a court may impose a civil
accordance with this section, that the public conven- : penalty of not .to exceed $5,000 on each person . who
ience and necessity permit the abandonment or dis
knowingly authorizes, consents to, or permits any .vio=
continuance of a line or- railroad, it shall cause such ... _ lation of this_ section or of any regulation under this
finding to be published in the Federal Register ., .If, section.
within 30 days of such. . publication, the. Commission
(10) Further findings by Commission of suitability of abanfurther finds thatdoned or discontinued properties for use for other public
(i) a financially responsible person (including a
purposes ; limitations on disposal subsequent to finding
government entity) has offered financial assistance
(in the form of a rail service continuation payment)
In any instance in which the Commission finds that
to enable the rail service involved to be continued; the present or future public convenience and necessity
and
permit abandonment or discontinuance, the Commits0i) it is likely that such proffered assistance sion shall make a further finding whether such propwoulderties are suitable for use for other public purposes,
(A) cover the difference between the revenues
including roads or highways, other forms of mass
which are attributable to such line of railroad and transportation, conservation, energy production or
the avoidable cost of providing rail freight service transmission, or recreation . If the Commission finds
on such line, together with a reasonable return on that the properties proposed to be abandoned are suitthe value of such line; or
able for other public purposes, it shall order that : such
(B) cover the acquisition cost of all or any por- rail properties not be sold, leased, exchanged, or-othertion of such line of railroad ;
wise disposed of except in accordance with -such reathe Commission shall postpone the issuance of a cer- sonable terms and conditions as - are prescribed by thetificate of abandonment or discontinuance for such Commission, including, but not limited to, a prohibireasonable time, not to exceed 6 months, as is neces- tion on any such disposal, for a period not to exceed
sary to enable such person_ or entity to enter into a 180 days after the effective date of the order permitbinding agreement, with the carrier seeking such ting abandonment unless - such properties have first
abandonment or discontinuance, to provide such as- been offered, upon reasonable terms, for acquiusition
sistance or to purchase such line and to provide for for public purposes .
the continued operation of rail services over such line .
Upon notification to the Commission of the execution (11) "Avoidable cost" and "reasonable return" defined
of such an assistance or - acquisition and operating
As used in this section :
agreement, the Commission shall postpone the issu(a) The term "avoidable cost" means all expenses
ance of such a certificate for such period of time as
which would be incurred by a carrier in providing a
such an agreement (including any extensions or modiservice which would not be incurred, in the case of
fications) is in effect.
discontinuance, if such service were discontinued or,
(b) A carrier by railroad subject to this chapter shall
in the case of abandonment, if the line over which
promptly make available, to any party considering ofsuch service was provided were abandoned : Such exfering financial assistance in accordance with subdivipenses shall include but are not limited to alt -cash
:
most
recent
reports
.
on
sion (a) of this paragraph, its
inflows which are foregone and all cash outflows
the physical condition of any line of railroad with re- which are incurred by such carrier as a - result of not
spect to which it seeks a certificate of abandonment or
discontinuing or not abandoning such service . Such
discontinuance, together with such traffic, revenue,
foregone cash inflows and incurred outflows shall inand other data as is necessary to determine the
clude (i) working capital and required capital -- examount of assistance that would be required to continpenditures, (ii) expenditures to eliminate deferred
ue rail service .
maintenance, (iii) the current cost of freight cars, lo(7) Determination by Commission subsequent to findings of
comotives and other equipment, and (iv) the foreoffers of financial assistance of extent avoidable costs of
gone tax benefits from not retiring properties from
rail service and other effects of applicable Federal
rail service and reasonable return on rail properties
and State income taxes.
exceed operating revenues
(b) The term "reasonable return" shall, in the case
Whenever the Commission finds, under paragraph
of a railroad not in . reorganization, be the cost of
(6)(a) of this section, that an offer of financial assistcapital to such railroad (as determined by the Comance has been made, the Commission shall determine
mission), and, in the case of a railroad in reorganizathe extent to which the avoidable cost of providing
tion, shall be the mean cost of capital of railroads
rail service plus a reasonable return on the value of

Page 529

TITLE 49, APPENDIX-TRANSPORTATION

not in reorganization, as determined by the Commission.
(Feb . 4, 1887, ch . 104, pt . I, § la, as added and amended
Feb . 5, 1976, Pub. L. 94-210, title VIII, $1802, 809(c),
90 Stat. 127, 146; Oct. 19, 1976, Pub . L. 94-555, title II,
1 218, 90 Stat . 2628 .)

§3

(2) Payment of freight as prerequisite to delivery
No carrier by railroad and no express company subject to the provisions of this chapter shall deliver or
relinquish possession at destination of any freight or
express shipment transported by it until all tariff
rates and charges thereon have been paid, except
under such rules and regulations as the Commission
§ 2. Repealed. Pub . L. 95-473, § 4(b), (c), Oct. 17, 1978, may from time to time prescribe to govern the settle92 Stat . 1466, 1470
ment of all such rates and charges and to prevent
unjust discrimination: Provided, That the provisions
Section repealed subject to an exception related to of this paragraph shall not be construed
ed to prohibit
transportation
rs
oil by pipeline . For disposition
ion
of any carrier or express company from extending credit
this section in revised Title 49, Transportation, see in connection with rates and charges on freight or exTable at beginning of Title 49 . See, also, notes follow- press shipments transported for the United States, for
ing Table .
any department, bureau, or agency thereof, or for any
Prior to repeal, section read as follows :
State or Territory or political subdivision thereof, or
for the District of Columbia. Where carriers by rail9 2. Special rates and rebates prohibited
road are instructed by a shipper or consignor to deliver property transported by such carriers to a consignIf any common carrier subject to the provisions of
this chapter shall, directly or indirectly, by any special ee other than the shipper or consignor, such consignee
rate, rebate, drawback, or other device, charge, shall not be legally liable for transportation charges in
demand, collect, or receive from any person or persons respect of the transportation of such property
a greater or less compensation for any service ren- (beyond those billed against him at the time of delivdered or to be rendered, in the transportation of pas- ery for which he is otherwise liable) which may be
sengers or property, subject to the provisions of this found to be due after the property has been delivered
to him, if the consignee (a) is an agent only and has no
chapter, than it charges, demands, collects, or receives
from any other person or persons for doing for him or beneficial title in the property, and (b) prior to delivthem a like and contemporaneous service in the trans- ery of the property has notified the delivering carrier
in writing of the fact of such agency and absence of
portation of a like kind of traffic under substantially
similar circumstances and conditions, such common beneficial title, and, in the case of a shipment reconsigned or diverted to a point other than that specified
carrier shall be deemed guilty of unjust discrimination, which is prohibited and declared to be unlawful . in the original bill of lading, has also notified the decarrier in writing of the name and address of
(Feb. 4, 1887, ch . 104, pt. I, 12, 24 Stat. 379 ; Feb. 28, livering
beneficial owner of the property . In such cases the
1920, ch . 91, § 404, 41 Stat . 479 ; June 19, 1934, ch. 652, the
or consignor, or, in the case of a shipment so
1 602(b), 48 Stat. 1102; Aug. 9, 1935, ch. 498, § 1, 49 shipper
reconsigned or diverted, the beneficial owner, shall be
Stat. 543.)
liable for such additional charges, irrespective of any
to the contrary in the bill of lading or in
§ 3 . Repealed . Pub. L. 95-473, § 4(b), (c), Oct. 17, 1978, provisions
the contract under which the shipment was made. An
92 Stat. 1466, 1470
action for the enforcement of such liability may be
begun within the period provided in paragraph (3) of
Section repealed subject to an exception related to
transportation of oil by pipeline . For disposition of section 16 of this Appendix or before the expiration of
months after final judgment against the carrier in
this section in revised Title .49,
Transportation, see six
an action against the consignee begun within the
Table at beginning of Title 49 See, also, notes follow-period
provided in paragraph (3) of section 16 of this
ing Table.
Appendix . If the consignee has given to the carrier erPrior to repeal, section read as follows :
roneous information as to who the beneficial owner is,
such consignee shall himself be liable for such addiii 3. Preferences; interchange of traffic; terminal facilities
tional charges, notwithstanding the foregoing provisions of this paragraph . An action for the enforcement
(1) Undue preferences or prejudices prohibited
It shall be unlawful for any common carrier subject of such liability may be begun within the period provided in paragraph (3) of section 16 of this Appendix
to the provisions of this chapter to make, give, or
cause any undue or unreasonable preference or advan- or before the expiration of six months after final judgtage to any particular person, company, firm, corpora- ment against the carrier in an action against the beneficial owner named by the consignee begun within the
tion, association, locality, port, port district, gateway,
provided in paragraph (3) of section 16 of this
transit point, region, district, territory, or any particu- period
lar description of traffic, in any respect whatsoever ; or Appendix . On shipments reconsigned or diverted by
an agent who has furnished the carrier in the reconto subject any particular person, company, firm, corporation, association, locality, port, port district, gate- signment or diversion order with a notice of agency
way, transit point, region, district, territory, or any and the proper name and address of the beneficial
particular description of traffic to any undue or unrea- doned
owner,atand
where such
shipments are
or abanultimate
destination,
the refused
said beneficial
sonable prejudice or disadvantage in any respect whatowner
shall
be
liable
for
all
legally
applicable
charges
soever: Provided, however, That this paragraph shall
in connection therewith . If the reconsignor or diverter
not be construed to apply to discrimination, prejudice,
has given to the carrier erroneous information as to
or disadvantage to the traffic of any other carrier of
who , the beneficial owner is, such reconsignor or diwhatever description.
verter shall himself be liable for all such charges, and
(la) Export rates on farm commodities; Commission's power an action for the enforcement of his liability may be
begun within the same period provided in the case of
to carry out policy
an action against a consignee who has given erroneous
It is declared to be the policy of congress that ship
pers of wheat, cotton, and all other farm commodities information as to the beneficial owner .
for export shall be granted export rates on the same
principles as are applicable in the case of rates on in- (3) Liability of shipper-consignee for freight where delivery
is made to another party upon instruction
dustrial products for export. The Commission is diIf a shipper or consignor of a shipment of property
rected, on its own initiative or an application by inter(other than a prepaid shipment) is also the consignee
ested persons, to make such investigations and conduct such hearings, and, after appropriate proceed- named in the bill of lading and, prior to the time of
ings, to issue such orders, as may be necessary to carry delivery, notifies, in writing, a delivering carrier by
railroad or a delivering express company subject to
out such policy .

§ 4

TITLE 49, APPENDIX-TRANSPORTATION

Page 530

the provisions of this chapter, (a) to deliver such propto be so used is not satisfied with the terms fixed for
erty at destination to another party, (b) that such
such use, or if the amount of compensation so fixed is
party is the beneficial owner of such property, and (c)
not duly and promptly paid, the carrier whose termithat delivery is to be made to such party only upon
nal facilities have thus been required to be given to
payment of all transportation charges in respect of
another carrier or other carriers shall be entitled to
the transportation of such property, and delivery is recover, by suit or action against such other carrier or
made by the carrier to such party without such paycarriers, proper damages for any injuries sustained by
ment, such shipper or consignor shall not be liable (as
it as the result of compliance with such requirement,
shipper, consignor, consignee, or otherwise) for such
or just compensation for such use, or both, as the case
transportation charges but the party to whom delivery
may be.
is so made shall in any event be liable for transporta(Feb . 4, 1887, ch. 104, pt . I, 13, 24 Stat. 380; Feb . 28,
tion charges billed against the property at the time of
1920, ch . 91, § 405, 41 Stat. 479 ; Mar . 4, 1927, ch. 510,
such delivery, and also for any additional charges
§ 1, 44 Stat. 1447; Aug . 9, 1935, ch . 498, 11, 49 Stat .
which may be found to be due after delivery of the
543; Aug. 12, 1935, ch. 509, 49 Stat . 607 ; Sept. 18, 1940,
property, except that if such party prior to such delivch . 722, title I, § 5(a), (c)-(f), 54 Stat . 902; Aug. 2, 1949,
ery has notified in writing the delivering carrier that
ch . 379, § 2(a), 63 Stat. 485 .)
he is not the beneficial owner of the property, and has
given in writing to such delivering carrier the name
§ 4 . Repealed . Pub . L. 95-473, § 4(b), (c), Oct. 17, 1978,
and address of such beneficial owner, such party shall
92 Stat. 1466, 1470
not be liable for any additional charges which may be
found to be due after delivery of the property ; but if
Section repealed subject to an exception related to
the party to whom delivery is made has given to the
transportation of oil by pipeline . For disposition of
carrier erroneous information as to the beneficial
this section in revised Title 49, Transportation, see
owner, such party shall nevertheless be liable for such
Table at beginning of Title 49 . See, also, notes followadditional charges . If the shipper or consignor has
ing Table .
given to the delivering carrier erroneous information
Prior to repeal, section read as follows :
as to who the beneficial owner is, such shipper or consignor shall himself be liable for such transportation
§ 4. Long and short haul charges ; competition with water
charges, notwithstanding the foregoing provisions of
routes
this paragraph and irrespective of any provisions to
the contrary in the bill of lading or in the contract of
(1) Charges for long and short hauls and on through route;
transportation under which the shipment was made .
exemption
An action for the enforcement of such liability either
It shall be unlawful for any common carrier subject
against the party to whom delivery is made or the
to this chapter or chapter 12 of this Appendix to
shipper or consignor may be begun within the period
provided in paragraph (3) of section 16 of this Appen- charge or receive any greater compensation in the aggregate for the transportation of passengers, or of like
dix, or before the expiration of six months after final
kind of property, for a shorter than for a longer disjudgment against the carrier in an action against
tance over the same line or route in the same direceither of such parties begun within the limitation
tion, the shorter being included within the longer disperiod provided in paragraph (3) of section 16 of this
Appendix . The term "delivering carrier" means the tance, or to charge any greater compensation as a
through rate than the aggregate of the intermediate
line-haul carrier making ultimate delivery .
rates subject to the provisions of this chapter or chap(4) Interchange of traffic
ter 12 of this Appendix, but this shall not be construed
All carriers subject to the provisions of this chapter
of this
i pany common carrier his A the term
ix t o
shall, according to their respective powers, afford all
or
chapter
receive
or
chapter
12
n
this
for
reasonable, proper, and equal facilities for the inter- ccharge l eceive as great compensation
a shorter
change of traffic between their respective lines and
for a he o
s
and
That upon appli
That
connecting lines, and for the receiving, forwarding,
ti t t
Commission
aftr
sucsuch
after authorized
and delivering of passengers or property to and from
carrier, in special
ci cases,, may be
the
connecting lines; and shall not discriminate in their Commission to charge lo
p
for lo pr than for shorter
r
rates, fares, and charges between connecting lines, or
erty
e for the transportation
may of
o passengers o propunduly prejudice any connecting line in the distribu. and the Commission
time to time preiers
tion of traffic that is not specifically routed by the
scribe tthe extent oto which such designated
may
shipper . As used in this paragraph the term "connectbe relieved from the operation is
the
foregoing
authoring line" means the connecting line of any carrier subprovisions this section, is
ity
s the mis sion
ject to the provisions of this chapter or any common
th it
proviso,
CoCommission
carrier by water, subject to chapter 12 of this Appenshall not permit the establishment of an charge to or
shall
dix
from the more distant point that is not reasonably
(5) Terminal facilities; use of and compensation for
compensatory for the service performed ; and no such
If the Commission finds it to be in the public interauthorization shall be granted on account of merely
potential water competition not actually in existence :
est and to be practicable, without substantially impairing the ability of a common carrier by railroad owning
Provided further, That any such carrier or carriers opor entitled to the enjoyment of terminal facilities to
erating over a circuitous line or route may, subject
handle its own business, it shall have power by order
only to the standards of lawfulness set forth in other
provisions of this chapter or chapter 12 of this Appento require the use of any such terminal facilities, including main-line track or tracks for a reasonable disdix and without further authorization, meet the
tance outside of such terminal, of any common carrier
charges of such carrier or carriers of the same type operating over a more direct line or route, to or from the
by railroad, by another such carrier or other such carriers, on such terms and for such compensation as the
competitive points, provided that rates so established
carriers affected may agree upon, or, in the event of a
over circuitous routes shall not be evidence on the
failure to agree, as the Commission may fix as just issue of the compensatory character of rates involved
in other proceedings : And provided further, That tarand reasonable for the use so required, to be ascertained on the principle controlling compensation in
iffs proposing rates subject to the provision of this
condemnation proceedings. Such compensation shall
paragraph requiring Commission authorization may
be filed when application is made to the Commission
be paid or adequately secured before the enjoyment of
the use may be commenced . If under this paragraph under the provisions hereof, and in the event such apthe use of such terminal facilities of any carrier is replication is approved, the Commission shall permit
quired to be given to another carrier or other carriers,
such tariffs to become effective upon one day's notice :
And provided further, That the provisions of this paraand the carrier whose terminal facilities are required

Page 531

TITLE 49, APPENDIX-TRANSPORTATION

05

(i) for two or more carriers to consolidate or merge
their properties or franchises, or any part thereof,
into one corporation for the ownership, management, and operation of the properties theretofore in
separate ownership ; or for any carrier, or two or
more carriers jointly, to purchase, lease, or contract
to operate the properties, or any part thereof, of another ; or for any carrier, or two or more carriers
jointly, to acquire control of another through ownership of its stock or otherwise ; or for a person which
is not a carrier to acquire control of two or more carriers through ownership of their stock or otherwise;
or for a person which is not a carrier and which has
control of one or more carriers to acquire control of
another carrier through ownership of its stock or
otherwise; or
by railroad to
erof, any
any
< for
or joint
joint oownership
or in joint use o
rights d
railroad line or
owned or operated by any other
tterminals incidental thereto.
such carrier,, and terminals
(b) Whenever a transaction is proposed under subdivision (a) of this paragraph, the carrier or carriers or
person seeking authority therefor shall present an ap0 5. Repealed. Pub. L . 95-473, § 4(b), (c), Oct. 17, 1978, plication to the Commission, and thereupon the Com92 Stat. 1466,1470
mission shall notify the Governor of each State in
Section repealed subject to an .exception
related
to
which
any part of the properties of the carriers intransportation of oil by pipeline For disposition of volved in the proposed transaction is situated, and also
this section in revised Title .49,
Transportation, see such
applicant
in
casecarriers
carriersandbythe
motor
vehicle or
areapplicants
involved, (and,
the perTable at beginning of Title 49 See, also, notes follow- sons
specified
in
section
305(e)
of
this
Appendix),
and
ing Table.
shall afford reasonable opportunity for interested parPrior to repeal, section read as follows :
ties to be heard . If the Commission shall consider it
necessary in order to determine whether the findings
.
Combinations
and
consolidations
of
carriers
§5
specified below may properly be made, it shall set said
;
division
of
traffic,
service,
or
earnings
(1) Pooling
application for public hearing ; and a public hearing
Except upon specific approval by order of the Con:- shall be held in all cases where carriers by railroad are
mission as in this section provided, and except as pro- involved unless the Commission determines that a
vided in paragraph (16) of section 1 of this Appendix, public hearing is not necessary in the public i nterest.
it shall be unlawful for any common carrier subject to If the Commission finds that, subject to such terms
this chapter, chapter 8, or chapter 12 of this Appendix and conditions and such modifications as it shall find
to enter into any contract, agreement, or combination to be just and reasonable, the proposed transaction is
with any other such common carrier or carriers for within the scope of subdivision (a) of this paragraph
the pooling or division of traffic, or of service, or of and will be consistent with the public interest, it shall
gross or net earnings, or of any portion thereof ; and in enter an order approving and authorizing such transany case of an unlawful agreement for the pooling or action, upon the terms and conditions, and with the
division of traffic, service, or earnings as aforesaid modifications, so found to be just and reasonable : Proeach day of its continuance shall be a separate of- vided, That if a carrier by railroad subject to this
fense : Provided, That whenever the Commission is of
chapter, or any person which is controlled by such a
opinion, after hearing upon application of any such carrier, or affiliated therewith within the meaning of
carrier or carriers or upon its own initiative, that the paragraph (6) of this section, is an applicant in the
pooling or division, to the extent indicated by the case of any such proposed transaction involving a
Commission, of their traffic, service, or gross or net motor carrier, the Commission shall not enter such an
earnings, or of any portion thereof, will be in the in- order unless it finds that the transaction proposed will
terest of better service to the public or of economy in be consistent with the public interest and will enable
operation, and will not unduly restrain competition, such carrier to use service by motor vehicle to public
the Commission shall by order approve and authorize, advantage in its operations and will not unduly reif assented to by all the carriers involved, such pooling strain competition .
or division, under such rules and regulations, and for (c) In passing upon any proposed transaction under
such consideration as between such carriers and upon the provisions of this paragraph, the Commission shall
such terms and conditions, as shall be found by the give weight to the following considerations, among
Commission to be just and reasonable in the premises : others : (1) The effect of the proposed transaction
Provided further 'That any contract, agreement, or
upon adequate transportation service to the public ; (2)
combination to which any common carrier by water the effect upon the public interest of the inclusion, or
subject to chapter 12 of this Appendix is a party, relat- failure to include, other railroads in the territory fining to the pooling or division of traffic, service, or volved in the proposed transaction ; (3) the total fixed
earnings, or any portion thereof, lawfully existing on charges resulting from the proposed transaction ; and
September 18, 1940, if filed with the Commission (4) the interest of the carrier employees affected .
within six months after such date, shall continue to be
(d) The Commission shall have authority in the case
lawful except to the extent that the Commission, after of a proposed transaction under this paragraph involvhearing upon application o ; upon its own initiative, ing a railroad or railroads, as a prerequisite to its apmay find and by order declare that such contract, proval of the proposed transaction, to require, upon
agreement, or combination is not in the interest of equitable terms, the inclusion of another railroad or
better service to the public or of economy in oper- other railroads in the territory involved, upon petition
ation, or that it will unduly restrain competition.
by such railroad or railroads requesting such inclu(2) Unification, mergers, and acquisitions of control ; proce- sion, and upon a finding that such inclusion is consistent with the public interest .
dures applicable
(e) No transaction which contemplates a guaranty or
(a) It shall be lawful, with the approval and authorization of the Commission, as provided in subdivision assumption of payment of dividends or of fixed
charges, shall be approved by the Commission under
(b) of this paragraph or paragraph (3)-

graph shall not apply to express companies subject to
the provisions of this chapter, except that the exemption herein accorded express companies shall not be
construed to relieve them from the operation of any
other provision. contained in this Act.
(2) Competition of railroads with water routes ; change of
rates
Wherever a carrier by railroad shall in competition
with a water route or routes reduce the rates on the
carriage of any species of freight to or from competitive points, it shall not be permitted to increase such
rates unless after hearing by the Commission it shall
be found that such proposed increase rests upon
changed conditions other than the elimination of
water competition.
(Feb . 4, 1887, ch . 104, pt . I, § 4, 24 Stat. 380; June 18,
1910, ch . 309, § 8, 36 Stat . 547 ; Feb . 28, 1920, ch . 91,
§ 406, 41 Stat . 480; Aug . 9, 1935, ch. 498, § 1, 49 Stat.
543 ; Sept. 18, 1940, ch . 722, title I, § 6(a), 54 Stat. 904;
July 11, 1957, Pub. L. 85-99, 71 Stat . 292; Sept. 27,
, Pub. 87-707, 76 Stat . 635 .)

§5

TITLE 49, APPENDIX-TRANSPORTATION

Page 532

this paragraph except upon a specific finding by the for. If the Commission determines that the due and
Commission that such guaranty or assumption is not
timely execution of its functions under this paragraph
inconsistent with the public interest . No transaction so requires, or that an application brought under this
shall be approved under this paragraph which will paragraph is of major transportation importance, it
result in an increase of total fixed charges, except may order that the case be referred directly (without
upon a specific findings by the Commission that such an initial decision by a division, individual Commisincrease would not be contrary to public interest.
sioner, board, or administrative law judge) to the full
(f) As a condition of its approval, under this paraCommission for a decision which is final within the
graph or paragraph (3), of any transaction involving a meaning of section 17 of this Appendix .
carrier or carriers by railroad subject to the provisions
(h) The Secretary of Transportation may propose
of this chapter, the Commission shall require a fair any modification of any transaction governed by this
and equitable arrangement to protect the interests of
paragraph which involves a carrier by railroad . The
the railroad employees affected . In its order of approv- Secretary shall have standing to appear before the
al the Commission shall include terms and conditions Commission in support of any such proposed modificaproviding that during the period of four years from tion.
the effective date of such order such transaction will
not result in employees of the carrier or carriers by
(3) Expedited merger, consolidation, etc ., procedure; applicarailroad affected by such order being in a worse posibility ; prerequisites
tion with respect to their employment except that the
(a)
a merger, consolidation, unification or coordiprotection afforded to any employee pursuant to this nationIfproject
(as described in section 5(c) of the Desentence shall not be required to continue for a longer partment of Transportation Act [now 49 U .S .C.
period, following the effective date of such order, than
333(c)]), joint use of tracks or other facilities, or acquithe period during which such employee was in the sition or sale of assets, which involves any common
employ of such carrier or carriers prior to the effec- carrier by railroad subject to this chapter, is proposed
tive date of such order. Such arrangement shall con- by an eligible party in accordance with subdivision (b)
tain provisions no less protective of the interests of of this paragraph during the period beginning on Febemployees than those imposed before February 5,
5, 1976, and ending on December 31, 1981, the
1976, pursuant to this subdivision and those estab- ruary
party seeking authority for the execution or implelished pursuant to section 565 of title 45 . Notwith- mentation of such transaction may utilize the procestanding any other provisions of this Act, an agreeset forth in this paragraph or in paragraph (2) of
ment pertaining to the protection of the interests of dure
this section .
said employees may be entered into after September
(b) Any transaction described in subdivision (a) of
18, 1940, by any carrier or carriers by railroad and the
duly authorized representative or representatives of this
by- paragraph may be proposed to the Commission
its or their employees .
(i) the Secretary of Transportation (hereafter in
(g) In any case arising under this paragraph which
this
paragraph referred to as the "Secretary"), with
involves a common carrier by railroad, the Commisthe consent of the common carriers by railroad subsion shallject to this chapter which are parties to such trans(i) within 30 days after the date on which an appliaction ; or
cation is filed with the Commission and after a certi(ii) any such carrier which, not less than 6 months
fied copy of such application is furnished to the Secprior to such submission to the Commission, submitretary of Transportation, (A) publish notice thereof
ted such proposed transaction to the Secretary for
in the Federal Register, or (B) if such application is
incomplete, reject such application by order, which evaluation
graph . pursuant to subdivision (f) of this paraorder shall be deemed to be final under the provi(c) Whenever a transaction described in subdivision
sions of section 17 of this Appendix ;
of this paragraph is proposed under this para(ii) provide that written comments on an applica- (a)
graph, the proposing party shall submit an application
tion,
as
to
which
such
notice
is
published,
may
be
filed within 45 days after the publication of such for approval thereof to the Commission, in accordance
with such requirements as to form, content, and docunotice in the Federal Register ;
as the Commission may prescribe . Within
(iii) require that copies of any such comments mentation
10 days after the date of receipt of such an applicashall be served upon the Secretary of Transportation, the Commission shall send a notice of such protion and the Attorney General, each of whom shall
posed transaction tobe afforded 15 days following the date of receipt
(i) the Governor of each State which may be afthereof to inform the Commission whether he will
fected, directly or indirectly, by such transaction if
intervene as a party to the proceeding, and if so, to
it is executed or implemented ;
submit preliminary views on such application ;
(ii) the Attorney General;
(iv) require that all other applications, which are
(ill) the Secretary of Labor; and
inconsistent, in whole or in part, with such applica(iv) the Secretary (except where the Secretary is
tions, and all petitions for inclusion in the transacthe proposing party) .
tion, shall be filed with the Commission and furThe Commission shall accompany its notice to the
nished to the Secretary of Transportation, within 90
Secretary with a request for the report of the Secredays after the publication of notice of the applicatary pursuant to clause (v) of subdivision (f) of this
tion in the Federal Register ;
(v) conclude any evidentiary proceedings within paragraph. Each such notice shall include a copy of
such application ; a summary of the proposed transac240 days following the date of such publication of
notice, except that in the case of an application in- tion involved, and the proposing party's reasons and
public interest justifications therefor .
volving the merger or control of two or more class I
(d) The Commission shall hold a public hearing on
railroads, as defined by the Commission, the Comeach application submitted to it pursuant to subdivimission shall conclude any evidentiary proceedings
sion (c) of this paragraph, within 90 days after the
not more than 24 months following the date upon
which notice of the application was published in the date of receipt of such application . Such public hearing shall be held before a panel of the Commission
Federal Register; and
(vi) issue a final decision within 180 days following
duly designated for such purpose by the Commission .
Such panel may utilize administrative law judges and
the date upon which the evidentiary proceeding is
the Rail Services Planning Office in such manner as it
concluded.
If the Commission fails to issue a decision which is considers appropriate for the conduct of the hearing,
final within the meaning of section 17 of this Appenthe evaluation of such application and comments
thereon, and the timely and reasonable determination
dix within such 180-day period, it shall notify the Congress in writing of such failure and the reasons there- of whether it is in the public interest to grant such ap-

Page 533

TITLE 49, APPENDIX-TRANSPORTATION

§5

(I) whether such proposed transaction will implication and to approve such proposed transaction
prove rail service ; and
pursuant to subdivision (g) of this paragraph . -Such
(v) submit a report to the Commission setting
panel shall complete such hearing within 180 days
after the date of referral of such application to such
forth the results of each study conducted pursuant
to clause (iv) of this subdivision, within 10 days after
panel, and it may, in order to meet such requirement,
an application is submitted to the Commission porprescribe such rules and make such rulings as may
tend to avoid unnecessary costs or delay. Such panel
suant to subdivision (o) of this paragraph, with reshall recommend a decision and certify the record to
spect to the proposed transaction which is the subthe full Commission for final decision, within 90 days
ject of such study . The Commission shall give due
after the termination of such hearing . The full Comweight and consideration to such report in making
mission shall hear oral argument on the matter so cerits determinations under this paragraph .
tified, and it shall render a final decision within 120
(g) The Commission maydays after receipt of the certified record and recom(i) approve a transaction proposed under this paramended decision of such panel . The Commission may,
graph, if the Commission determines that such proin its discretion, extend any time period set forth in
posed transaction is in the public interest ; and
this subdivision, except that the final decision of the
(ii) condition its approval of any such proposed
Commission shall be rendered not later than the
transaction on any terms, conditions, and modificasecond anniversary of the date of receipt of such an
tions which the Commission determines are in the
application by the Commission .
public interest ; or
(e) In making its recommended decision with respect
(iii) disapprove any such proposed transaction, if
to any transaction proposed under this paragraph, the
the Commission determines that such proposed
duly designated panel of the Commission shall
transaction is not in the public interest .
(i) request the views of the Secretary, with respect
In each such case, the decision of the Commission
to the effect of such proposed transaction on the na- shall be accompanied by a written opinion setting
tional transportation policy, as stated by the Secre- forth the reasons for its action .
tary, and consider the matter submitted under sub(4) Noncarrier deemed carrier upon acquiring control
division (f) of this paragraph;
(ii) request the views of the Attorney General,
Whenever a person which is not- a carrier is authorwith respect to any competitive or anticompetitive ized, by an order entered under paragraph (2) of this
effects of such proposed transaction ; and section, to acquire control of any carrier or of two or
(iii) request the views of the Secretary of Labor,
more carriers, such person thereafter shall, to the
with respect to the effect of such proposed transacextent provided by the Commission in, such order, be
tion on railroad employees, particularly as to wheth- considered as a carrier subject to such of- the following
er such proposal contains adequate employee protec- provisions as are applicable :o any carrier involved in
tion provisions . .
such acquisition of control : Sections 20(1) to (10),
Such views shall be submitted in writing and shall be
304(a)(1) and (2), 320 and 913 of this Appendix, (which
available to the public upon request.
relate to reports, accounts, and so forth, of carriers),
(f) Whenever a proposed transaction is submitted to
sections 20a(2) to (11), and 314 of this Appendix,
the Secretary by a common carrier by railroad pursu- and
(which relate to issues of securities and assumptions of
ant to clause (ii) of subdivision (b) of this paragraph,
liability of carriers), including in each case the penaland whenever the Secretary develops a proposed ties applicable in the case of violations of such provitransaction for submission to the Commission pursu- sions. In the application of such provisions of sections
ant to subdivision (c) of this paragraph, the Secretary 20a and 314 of this Appendix, in the case of any such
shallperson, the Commission shall authorize the issue or
(1) publish a summary and a detailed account of
assumption applied for only if it finds that such issue
the
contents
of
such
proposed
transaction
in
the
Federal Register, in order to provide reasonable or assumption is consistent with the proper performof its service to the public by each carrier which
notice to interested parties and the public of such ance
is under the control of such person, that it will not
proposed transaction;
the ability of any such carrier to perform such
(11) give notice of such proposed transaction to the impair
service,
and that it is otherwise consistent with the
Attorney General and to the Governor of each State
in which any part of the properties of the common public interest .
carriers by railroad involved in such proposed trans- (5) Control effected by other than prescribed methods
action are situated ;
It shall be unlawful for any person, except as provid(111) conduct an informal public hearing with re- ed in paragraphs (2) and (3) of this section, to enter
spect to such proposed transaction and provide an into any transaction within the scope of subdivision .
opportunity for all interested parties to submit writ- (a) of paragraph (2) of this section, or to accomplish
ten comments ;
or effectuate, or to participate in accomplishing or ef(iv) study each such proposed transaction with refectuating, the control or management in a common
sped ) t
interest of any two or more carriers, however such
railtransportation in the geo(A the needs
result is attained, whether directly or indirectly, by
graphical area affected ;
of common directors, officers, or stockholders, a
(B) the effect of such proposed transaction on use
holding or investment company or companies, a voting
the retention and promotion of competition in the
trust or trusts, or in any other manner whatsoever . It
provision of rail and other transportation services
shall be unlawful to continue to maintain control or
in the geographical area affected ;
(C) the environmental impact of such proposed management accomplished or effectuated after the enactment of this amendatory paragraph and in violatransaction and of alternative choices of action ;
(D) the effect of such proposed transaction on tion of its provisions . As used in this paragraph and
paragraph (6) of this section, the words "control or
employment;
(E) the cost of rehabilitation and modernization management" shall be construed to include the power
of track, equipment, and other facilities, with a to exercise control or management.
comparison of the potential savings or losses from
(6) Transactions deemed to effectuate control or management
other possible choices of action ;
For the purposes of this section, but not in anywise
(F) the rationalization of the rail system;
limiting the application of the provisions thereof, any
(G) the impact of such proposed transaction on
transaction shall be deemed to accomplish or effectushippers, consumers, and railroad employees ;
(H) the effect of such proposed transaction on ate the control or management in a common interest
of two carriersthe communities in the geographical areas affect(a) if such transaction is by a carrier, and if the
ed and on the geographical areas contiguous to
effect of such transaction is to place such carrier
such areas ; and

§5

TITLE 49, APPENDIX-TRANSPORTATION

Page 534

and persons affiliated with it, taken together, in con- the case of a transaction within the scope of paratrol of another carrier;
graph (2) of this section where the only parties to the
(b) if such transaction is by a person affiliated transaction are street, suburban, or' interurban electric
with a carrier, and if the effect of such transaction is
railways none of which is controlled by or under
to place such carrier and persons affiliated with it, common control with any carrier which is operated as
taken together, in control of another carrier ;
part of a general steam railroad system of transporta(c) if such transaction is by two or more persons tion.
acting together, one of whom is a carrier or is affiliated with a carrier, and if the effect of such transac- (12) Plenary nature of authority under section
tion is to place such persons and carriers and perThe authority conferred by this section shall be exsons affiliated with any one of them and persons afelusive and plenary, and any carrier . or corporation
filiated with any .such affiliated carrier, taken to- participating in or resulting from any transaction apgether, in control of another carrier .
proved by the Commission thereunder, shall have full
power (with the assent, in the case of a purchase and
(7) Affiliation with a carrier defined
sale, a lease, a corporate consolidation, or a corporate
For the purposes of this section a person shall be
merger, of a majority, unless a different vote is reheld to be affiliated with a carrier if, by reason of the
applicable State law, in which case he
relationship of such person to such carrier (whether number
uer so required shall assent, of the votes of the
by reason of the method of, or circumstances surholders of the shares entitled to vote of the capital
rounding organization or operation, or whether estabof such corporation at a regular meeting of such
lished through common directors, officers, or stock- stock
the notice of such meeting to include
holders, a voting trust or trusts, a holding or invest- stockholders,
such purpose, or at a special meeting thereof called
ment company or companies, or any other direct or insuch purpose) to carry such transaction into effect
direct means), it is reasonable to believe that the af- for
and to own and operate any properties and exercise
fairs of any carrier of which control may be acquired
control or franchises acquired through said transby such person will be managed in the interest of such any
action
without invoking any approval under State auother carrier .
thority ; and any carriers or other corporations, and
(8) Investigation by Commission of effectuation of control, by their officers and employees -and any other persons,
nonprescribed methods
participating in a transaction approved or authorized
The Commission is authorized, upon complaint or under the . provisions of this section shall be and they
upon its own initiative without complaint, but after are relieved from the :operation of the antitrust laws
notice and hearing, to investigate and determine and of all other restraints, limitations, and prohibiwhether any person is violating the provisions of para- tions of law, Federal, State, or municipal, Insofar as
graph (5) of this section . If the Commission finds after may be necessary to enable them to carry into effect
such investigation that such person is violating the the transaction so approved or provided for In .accordprovisions of such paragraph, it shall by order require ance with the terms and conditions, if any, imposed by
such person to take such action as may be necessary, the Commission, and to hold, maintain, and operate
any properties and exercise any control or franchises
in the opinion of the Commission, to prevent continuance of such violation. The provisions of this para- acquired through such transaction . Nothing in this
graph shall be in addition to, and not in substitution section shall be construed to create or provide for the
for, any other enforcement provisions contained in creation, directly or indirectly, of a Federal corporathis chapter; and with respect to any violation of para- tion, but any powers granted by this section to any
carrier or other corporation shall be deemed to be in
graphs (2) to (13) of this section, any penalty provision
applying to such a violation by a common carrier sub- addition to and in modification of its powers under its
ject to this chapter shall apply to such a violation by corporate charter or under the laws of any State .
any other person.
(13)
(9) Jurisdiction of injunctions, etc., against violations of sec- ' If any provision of the foregoing paragraphs of this
tion or orders
section, or the application thereof to any person or cirThe district courts - of the United States shall have cumstances, is held invalid, the other provisions of
jurisdiction upon the complaint of the Commission, alsuch paragraphs,' and the application of such provision
leging a violation of any of the provisions of this sec- to any other person or circumstances, shall not be aftion or disobedience of any order issued by .the Com- fected thereby.
mission thereunder by any person,- to -issue such -writs
of injunction or other proper process, mandatory or
(14) "Carrier" defined
otherwise, as may bee necessary to restrain such person
As used in paragraphs (2) to (13) of this section, infrom violation of such provision o r . to compel obedi- clusive, the term "carrier" means a carrier by railroad
ence to such order.
and an express company and a sleeping-car company,
subject to this chapter ; and a motor carrier subject to
(10) Supplemental orders by Commission
chapter 8 of this Appendix ; and a water carrier subject
The Commission may from time to time, for good
cause shown, make such orders, supplemental to any to chapter 12 of this Appendix .
order made under paragraph (1), (2) or (8) of this sec- (15) Interest in competing water carrier, prohibition
tion, as it may deem necessary or appropriate .
Notwithstanding the provisions of paragraph (2) of
(11) Unifications, consolidations, etc ., of motor carriers only this section, from and after the 1st day of July 1914, It
Nothing in this section shall be construed to require shall be unlawful for any carrier, as defined in section
the approval or authorization of the Commission in
1(3) of this Appendix, or (after . September .18, 1940)
any person controlling, controlled by, or under
the case of a transaction within the scope of paragraph (2) of this section . where the only parties to the common control with, such a carrier to own, lease, optransaction are motor carriers subject to chapter 8 of
erate, control, or have any interest whatsoever (by
this Appendix (but not including: a motor carrier con- stock ownership or otherwise, either directly, indirecttrolled by or affiliated with a carrier as defined in sec- ly, through any holding company, or by stockholders
tion 1(3) of this Appendix), and where the aggregate or directors in common, or in any other manner) in
gross operating revenues of such carriers have not exany common carrier by water operated through the
ceeded $300,000 for a period of twelve consecutive Panama Canal or elsewhere with which such carrier
months ending not more than six months preceding aforesaid does or may compete for traffic or any vessel
the date of the agreement of the parties covering the carrying freight or passengers upon said water route
transaction. or elsewhere with which said railroad or other carrier
Nothing in this section shall be construed to require aforesaid does or may compete for traffic ; and in case
the approval or authorization of the Commission in of the violation of this provision each day in which

Page 535

TITLE 49, APPENDIX-TRANSPORTATION

§ 5b

such violation continues shall be deemed a separate 95b . Agreements between common carriers other than
offense.
common carriers by railroad generally
(16) Determination of fact of competition
(1) "Carrier" and "antitrust laws" defined
Jurisdiction is conferred on the Commission to deFor purposes of this sectiontermine questions of fact, arising under paragraph
(A) The term "carrier" means any common carrier
(15) of this section, as to the competition or possibility
subject to. chapter 1 (other than a -,common carrier
of competition, after full hearing, on the application
by railroad), 8, or 12 of this Appendix or any freight
of any railroad company or other carrier . Such appliforwarder subject to chapter 13 of this Appendix ;
cation may be filed for the purpose of determining
and
whether any existing service is in violation of such
(B) The term "antitrust laws" has the meaning asparagraph and may pray for an order permitting the
signed to such term in section 1 of the Act approved
continuance of any vessel or vessels already in operOctober 15, 1914 (15 U.S .C . 12] .
ation, or may pray for an order under the provisions
of paragraph (17) of this section . The Commission
may on its own motion or the application of any ship- (2) Application to. .Commission for approval of agreements ;
rules and regulations
per institute proceedings to inquire into the operation
of any vessel in use by any railroad or other carrier
Any carrier party to an agreement between or
which has not applied to the Commission and had the among two or more carriers relating to rates, fares,
question of competition or the possibility of competi- classifications, divisions, allowances, or charges (intion determined as herein provided . In all such cases cluding charges between carriers and compensation
the order of said Commission shall be final .
paid or received for the use of facilities and equipment), or rules and regulations pertaining thereto, or
(17) Permission of interest in competing water carrier
Notwithstanding the provisions of paragraph (15) of procedures for the joint consideration, initiation or esthis section, the Commission shall have authority, tablishment thereof, may, under such rules and reguupon application of any carrier, as defined in section lations as the Commission may prescribe, apply to the
1(3) of this Appendix, and after hearing, by order to Commission for approval of the agreement, and the
authorize such carrier to own or acquire ownership of, Commission shall by order approve any such agreeto lease or operate, to have or acquire control of, or to ment (if approval thereof is not prohibited by parahave or acquire an interest in, a common carrier by graph (4), (5), or (6) of this section) if it finds that, by
water or vessel, not operated through the Panama reason of furtherance of the national transportation
Canal, with which the applicant does or may compete policy declared in this Act, the relief provided in parafor traffic, if the Commission shall find that the con- graph (9) of this section should apply with respect to
tinuance or acquisition of such ownership, lease, oper-' the making and carrying out of such agreement ;
otherwise the application shall be denied . The approvation, control, or interest will , not prevent such
common carrier by water or vessel from being operat- al of the Commission shall be granted only upon such
ed in the interest of the public and with advantage to terms and conditions as the Commission may prescribe
the convenience and commerce of the people, and that as necessary to enable it to grant its approval in acit will not exclude, prevent, or reduce competition on cordance with the standard above set forth in this
the route by water under consideration : Provided, paragraph.
That if the transaction or interest sought to be entered into, continued, or acquired is within the scope (3) Maintenance of accounts and records by conferences, buof paragraph (2)(a) of this section, the provisions of
reaus, committees, etc .
paragraph (2) of this section shall be applicable thereEach
conference, bureau, committee, or other orgato in addition to the provisions of this paragraph: And
nization established or continued pursuant to any
provided further, That no such authorization shall be
necessary if the carrier having the ownership, lease, agreement approved by the Commission under the
operation, control, or interest has, prior to September provisions of this section shall maintain such ac18, 1940, obtained an order of extension under the pro- counts, records, files, and memoranda and shall
visions of paragraph (21) of this section, as in effect submit to the Commission such reports, as may be prescribed by the Commission, and all such accounts,
prior to such date, and such order is still in effect.
files, and memoranda shall be subject to in(Feb. 4, 1887,_ .ch. 104, pt . I, § 5, 24 Stat . 380 ; Aug. 24, records,
resen on by the Commission or its duly authorized repin1912, ch. 390, § 11, 37 Stat . 566 ; Feb. 28, 1920, ch. 91,
1912,
esentatives.
408, 41 Stat. 480, 482; June 10, 1921, ch. 20, 42
Stat . 27 ; June 16, 1933, ch . 91, title II, § § 201-203, 48
Stat . 217-220; June 19, 1934, ch. 652, § 602(b), 48 Stat . (4) Agreements between carriers of different classes
The Commission shall not approve under this sec1102 ; Aug. 9, 1935, ch. 498, § 1, 49 Stat . 543 ; Sept. 18,
1940, ch. 722, title I, 17, 54 Stat . 905 ; Aug. 2, 1949, ch . tion any agreement between or among carriers of different classes unless it finds that such agreement is of
379, §§ 3, 4, 63 Stat . 485 ; July 27, 1965, Pub . L. 89-93,
§ 1, 79 Stat . 284 ; Feb. 5, 1976, Pub . L . 94-210, title IV, the character described in paragraph (2) of this sec§1402, 403, 90 Stat. 62, 63 ; Oct . 19, 1976, Pub. L . tion and is limited to matters relating to transporta94-555, title II, 12200), 90 Stat . 2630.)
tion under joint rates or over through routes; and for
~
purposes of this paragraph carriers by railroad, ex0 5a. Repealed . Pab. L . 95-473,(§ 4(b), Oct. 17, 1978, 92 press companies, and sleeping-car companies are earriers of one class ; pipe-line companies are carriers of one
Stat. 1466
class ; carriers by motor vehicle are carriers of one
Section, act June 16, 1933, ch . 91, title II, § 204, 46
class ; carriers by water are carriers of one class ; and
Stat . 220, related to continuing applicability of stat- freight forwarders are carriers of one class .
utes to combinations and consolidations existing prior
to June 16, 1933. For disposition of this section in re- (5) Pooling or division agreements
vised Title 49, Transportation, see Table at beginning
The Commission shall not approve under this secof Title 49 .
tion any agreement which it finds is an agreement
§ 5b. Repealed. Pub . L 95-473, § 4(b), (c), Oct . 17, with respect to a pooling, division, or other matter or
transaction, to which section 5 of this Appendix is ap1978, 92 Stat. 1466, 1470
plicable .
Section repealed subject to an exception related to
transportation of oil by pipeline . For disposition of (6) Agreements for determining matters through joint considthis section in revised Title 49, Transportation, see
eration
Table at beginning of Title 49 . See, also, notes followThe Commission shall not approve under this secing Table .
tion any agreement which establishes a procedure for
Prior to repeal, section read as follows :
the determination of any matter through joint consid-

§

5c

TITLE

49,

APPENDIX-TRANSPORTATION

Page 536

eration unless it finds that under the agreement there (b) "antitrust laws" means the Act of July 2, 1890,
is accorded to each party the free and unrestrained as amended (15 U .S.C . 1, et seq .), the Act of October
right to take independent action either before or after
15, 1914, as amended (15 U.S.C. 12, et seq .), the Fedany determination arrived at through such procedure .
eral Trade Commission Act (15 U .S.C . 41, et seq.),
sections 8 and 9 of title 15, and chapter 592 of the
(7) Investigation of prior approved agreements; termination
Act of June 19, 1936, as amended (15 U .S.C . 13, 13a,
or modification of approval; effective date
13b, 21a) ; and
The Commission is authorized, upon complaint or
(c) "carrier" means any common carrier by railupon its own initiative without complaint, to investiroad subject to this chapter .
gate and determine whether any agreement previously
approved by It under this section, or terms and condi(2) Application to Commission for approval of agreements ;
tions upon which such approval was granted, is not or
rules and regulations; criteria
are not in conformity with the standard set forth in
Any carrier which is a party to an agreement, beparagraph (2) of this section, or whether any such
terms and conditions are not necessary for purposes of tween or among two or more carriers, relating to rates,
fares, classification, divisions, allowances, or charges
conformity with such standard, and, after such inves(including charges between carriers and compensation
tigation, the Commission shall by order terminate or
paid or received for the use of facilities and equipmodify its approval of such agreement if it finds such
ment), or rules and regulations pertaining thereto, or
action necessary to insure conformity with such standprocedures for the Joint consideration, initiation, or
ard, and shall modify the terms and conditions upon
establishment thereof, shall, under such rules and regwhich such approval was granted to the extent it finds
ulations as the Commission shall prescribe, apply to
necessary to insure conformity with such standard or
to the extent to which it finds such terms and condi- the Commission for approval of such agreement. The
Commission shall, by order, approve any such agreetions not necessary to insure such conformity . The efment if approval thereof is not prohibited by parafective date of any order terminating or modifying apgraph (4) or (5) of this section and if it finds that, by
proval, or modifying terms and conditions, shall be
reason of furtherance of the national- transportation
postponed for such period as the Commission deterpolicy declared in this Act, the relief provided in paramines to be reasonably necessary to avoid undue hardgraph (8) of this section should apply with respect to
ship.
the making and carrying out of such agreement;
(8) Hearings
otherwise the application shall be denied . No such apNo order shall be entered under this section except
proval shall be granted or continued (a) If any of the
after interested parties have been afforded reasonable terms and conditions which- are prescribed under the
opportunity for hearing,
last sentence of this paragraph are violated or not
complied with, or (b) unless the Commission receives a
(9) Relief from operation of antitrust laws
verified written statement (and any written suppleParties to any agreement approved by the Commisment or addendum thereto requested by the Commission under this section and other persons are, if the
sion) setting forth, with respect to each carrier which
approval of such agreement is not prohibited by parais a party to such agreement (I) its name, (ti) the mailgraph (4), (5), or (6) of this section, relieved from the
ing address and telephone number of its headquarters
operation of the antitrust laws with respect to the
office, (iii) the names of each of its affiliates, (iv) the
making of such agreement, and with respect to the
names, addresses, and affiliations of each of its officarrying out of such agreement in conformity with its
cers and directors and . of each person who, together
provisions and in conformity with the terms and conwith any affiliate, owns or controls any debt, equity,
ditions prescribed by the Commission .
or security interest in it having a value of $1,000,000 or
Effect
of
Commission's
action
(10)
more, and (v) such other information as the CommisAny action of the Commission under this section in
sion directs to be included . The approval of the, Comapproving an agreement, or in denying an application
mission shall be granted only upon such terms and
for such approval, or in terminating or modifying its
conditions as the Commission determines . are neces,
approval of an agreement, or in prescribing the terms
sary to enable its approval to be granted in accordance
and conditions upon which its approval is to be grantwith the standard set forth in this paragraph .
ed, or in modifying such terms and conditions, shall be
construed as having effect solely with reference to the
(3) Maintenance of accounts and records by conferences, buapplicability of the relief provisions of paragraph (9)
reaus, committees, etc.; investigative and reporting
of this section .
powers of Commission
(Feb. 4, 1887, ch . 104, pt . I, § 5a, as added June 17,
Each conference, bureau, committee, or other orga1948, ch . 491, 62 Stat. 472, and amended Feb . 5, 1976,
nization established or continued pursuant to any
Pub. IL 94-210, title II, § 208(a), 90 Stat . 42 .1
agreement approved by the Commission under the
provisions of this section shall maintain such ac§ 5c. Repealed . Pub. L. 95-473, § 4(b), (c), Oct . 17,
counts, records, files, and memoranda ands shall
1978, 92 Stat. 1466, 1470
submit to the Commission such reports.-as may be prescribed by the Commission . All such accounts, records,
scribed
repealed subject to .an exception related to
files, and memoranda shall be subject epres ectionv .
transportation of oil by pipeline . For disposition of
the Commission or its duly authorized representatives
this section in revised Title 49, Transportation, see
The Commission may conduct
, coedinvestigations,, make reTable
beginning of Title 49 . See, also, notes followports, issue subpoenas, conduct hearings, require the
Table .
production of relevant documents, records, and propPrior to repeal, section read as follows:
erty, copy and verify the correctness of information
subject to inspection, and take depositions (a) to deter0 5c. Agreements between common carriers by railroad submine whether any such conference, bureau, commitjec
beter
tee, or other organization, or any carrier which is a
party to any such agreement, has acted or is acting in
(1) Definitions
compliance with the provisions of this section, regulaAs used in this section, the term(a) "affiliate" means any person directly or inditions issued under this section, and the public interest,
rectly controlling, controlled by, or under common
(b) to determine whether any such organization or
control or ownership with, any other person, and as carrier is inhibiting an efficient utilization of transportation resources or has established practices which are
used in this subdivision, the term (i) "control" has
inconsistent with efficient, flexible, and economic opthe same meaning as in section 1(3)(b) of this Aperation, and (c) for such other purposes as the Compendix ; and (ii) "ownership" refers to equity holdings of 5 per centum or more in any business entity ;
mission considers appropriate .

Page 537

TITLE 49, APPENDIX-TRANSPORTATION

§ 5c

(4) Pooling or division agreements
it finds such action necessary to Insure conformity
The Commission shall not approve under this sec- with such standard, and shall modify the terms and
tion any agreement which it finds is an agreement conditions upon which such approval was granted to
the extent it finds necessary to insure conformity with
with respect to a pooling, division, or other matter or
such standard or to the extent to which it finds such
transaction to which section 5 of this Appendix is apterms and conditions not necessary to insure such conplicable.
. The effective date of any order terminating
(b) Agreements for determining matters through joint consid- formity
or modifying approval, or modifying terms and condieration ; limitations
tions, shall be postponed for such period as the Coma) The Commission shall not approve under this mission determines to be reasonably necessary to
section any agreement which . establishes a procedure
avoid undue hardship.
for the determination of any matter through joint
(b) The Commission shall periodically, but not less
consideration, unless it finds that under the agreethan once every 3 years, review each agreement which
ment there is accorded to each party the free and unthe Commission has by order approved under this secrestrained right to take independent action, without tion to determine whether such agreement, or any
fear of any sanction or retaliatory action, at any time
conference, bureau, committee, or other organization
before or after any determination arrived at through
established or continued pursuant to such agreement,
such procedure. In no event shall any conference, still conforms with the standard set forth in parabureau, committee, or other organization established graph (2) of this section and the public interest, and to
or continued pursuant to any agreement approved by evaluate the success and effect upon the consuming
the Commission under the provisions of this sectionpublic and the national rail freight transportation
(I) permit participation in agreements with respect system of such agreement and organization . The Comto, or any voting on, single-line rates, allowances, or
mission shall report to the President and to the Concharges established by any carrier;
gress on the results of such reviews, as part . of Its
(ii) permit any carrier to participate in agreements annual report pursuant to section 21 of this Appendix .
with respect to, or to vote on, rates, allowances, or if the Commission makes a determination that any
charges relating to any particular interline move- such agreement or organization is no longer in conment, unless such carrier can practicably participate formity with such standard, the Commission shall by
in such movement; or
order terminate or suspend its approval thereof .
(iii) permit, provide for, or establish any procedure
for joint consideration or any joint action to protest
(7) Hearings
or otherwise seek the suspension of any rate or clanNo order shall be entered under this section except
sification filed by a carrier of the same mode pursuafter interested parties have been afforded a reasonaant to section 15(8) of this Appendix where such ble opportunity for a hearing .
rate or classification is established by independent
(8) Relief from operation of antitrust laws
action.
Parties to any agreement approved by the CommisAs used in clause (I) of this subdivision, a single-line
rate, allowance, or charge is one that is proposed by a sion under this section and other persons are, if the
single carrier applicable only over its own line and as approval of such agreement is no [not] prohibited by
to which the service (exclusive of terminal services paragraph (4) or (5) of this section, hereby relieved
provided by switching, drayage, or other terminal car- from the operation of the antitrust laws with respect
to the making of such agreement, and with respect to
riers or agencies) can be performed by such carrier .
the carrying out of such agreement in conformity with
(b) The limitations set forth in subdivision (a) of
this paragraph shall not be applicable toits provisions and in conformity with the terms and
conditions prescribed by the Commission .
(I) general rate increases or decreases, if the agreements accord the shipping public, under specified
procedures, adequate notice of at least . 15 days of (9) Applicability of Commission's action
Any action of the Commission under this section (a)
such proposals and an opportunity to present com- .
ments thereon, in writing or otherwise, prior to the in approving an agreement, (b) in denying an applicafiling with the Commission of the tariffs containing tion for such approval, (c) in terminating or modifying
such approval, (d) in prescribing the terms and condisuch increases or decreases, or
(ii) broad tariff changes if such changes are of gen- tions upon which such approval is to be granted, or (e)
eral application or substantially general application in modifying such terms and conditions, shall be conthroughout a territory or territories within which strued as having effect solely with reference to the applicability of the relief provisions of paragraph (8) of
such changes are to be applicable .
In any proceeding in which it is alleged that a carrier this section .
voted or agreed upon a rate, allowance, or charge, in
Periodic assessment and report by Federal Trade Comviolation of the provisions of this section, the party al - (10)mission
to Commission regarding agreements, etc. ; conleging such violation shall have the burden of showing
mission availability of report
that such vote or agreement occurred . A showing of
The Federal Trade Commission, in consultation with
parallel behavior is not, by itself, sufficient to satisfy
the Antitrust Division of the Department of Justice,
such burden.
(
shall periodically prepare an assessment of, and shall
(6) Investigation of prior approved agreements ; termination report to the Commission on (a) any possible anticomor modification of approval ; effective date; review of ap- petitive features of (I) any agreements approved or
proval, report to President and Congress ; termination or submitted for approval under this section, and (ii) any
suspension of approval
conferences, bureaus, committees, or other organiza(a) The Commission is authorized, upon complaint
tions operating under such agreements, and (b) possior upon its own initiative without complaint, to inves- ble ways to eliminate or alleviate any such anticom
tigate and determine whether any agreement previ- petitive features, effects, or aspects in a manner that
ously approved by it under this section, or terms and
will further the goals of the national transportation
conditions upon which such approval was granted, is
policy and this Act. The Commission shall make such
not or are not in conformity with the standards set
reports available to the public .
forth in paragraph (2) of this section and with the
public interest, and whether any such terms and con- (11) Time for final disposition of rule, rate or charge docketed with conferences, bureaus, committees, etc .
ditions are not necessary or whether any additional or
modified terms and conditions are necessary for purAny conference, bureau, committee, or other organiposes of conformity with such standard . After any zation established or continued pursuant to any agreesuch investigation the Commission shall, by order, ter- ment approved by the Commission under this section
shall make a final disposition with respect to any rule,
minate or modify its approval of such an agreement if

§6

TITLE 49, APPENDIX-TRANSPORTATION

rate, or charge docketed with such organization within
120 days after such proposal is docketed .
(Feb . 4, 1887, ch . 104, part I, § 5b, as added Feb . 5,
1976, Pub. L . 94-210, title II, § 208(b), 90 Stat. 42, and
amended Oct. 19, 1976, Pub. L. 94-555, title II,
- 220(k), 90 Stat. 2630 .)

Page 538

to the public published as aforesaid, which shall plainly state the changes proposed to be made in the schedule then in force and the time when the changed
rates, fares, or charges will go into effect; and the proposed changes shall be shown by printing new
ules, or shall be plainly indicated upon the schedules
in force at the time and kept open to public inspec§ 6. Repealed. Pub . L- 95-473, § 4(b), (c), Oct. 17, 1978, tion : Provided, That the Commission may, in its discretion and for good cause shown, allow changes upon
92 Stat. 1466, 1470
less than the notice herein specified, or modify the reSection repealed subject to an exception related to quirements of this section in respect to publishing,
transportation of oil by pipeline . For disposition of posting, and filing of tariffs, either in particular inthis section in revised Title 49, Transportation, see stances or by a general order applicable to special or
Table at beginning of Title 49 . See, also, notes follow- peculiar circumstances or conditions : Provided further,
ing Table .
That the Commission is authorized to make suitable
Prior to repeal, section read as follows:
rules and regulations for the simplification of schedules of rates, fares, charges, and classifications and to
§ 6. Schedules and statements of rates, etc ., joint rail and permit in such rules and regulations the filing of an
water transportation
amendment of or change in any rate, fare, charge, or
(1) Schedule of rates, fares, and charges; filing and posting classification without filing complete schedules coverEvery common carrier subject to the provisions of ing rates, fares, charges, or classifications not changed
if, in its judgment, not inconsistent with the public inthis chapter shall file with the Commission created by
this chapter and print and keep open to public inspec- terest.
tion schedules showing all the rates, fares, and (4) Joint tariffs
charges for transportation between different points on
The names of the several carriers which are parties
its own route and between points on its own route and
any joint tariff shall be specified therein, and each
points on the route of any other carrier by railroad, by to
the parties thereto, other than the one filing the
pipe line, or by water when a through route and joint of
shall file with the Commission such evidence of
rate have been established. If no joint rate over the same,
concurrence therein or acceptance thereof as may be
through route has been established, the several carrior approved by the Commission, and where
ers in such through route shall file, print, and keep required
such
evidence
of concurrence or acceptance is filed it
open to public inspection, as aforesaid, the separately shall not be necessary
the carriers filing the same
established rates, fares, and charges applied to the to also file copies offor
the tariffs in which they are
through transportation. The schedules printed - as named as parties .
aforesaid by any such common carrier shall plainly
state the places between which property and passen(5) Copies of traffic contracts to be filed
gers will be carried, and shall contain the classification
Every common carrier subject to this chapter shall
of freight in force, and shall also state separately all also file with said Commission copies of all contracts,
terminal charges, storage charges, icing charges, and agreements, or arrangements, with other common carall other charges which the Commission may require,
in relation to any traffic affected by the proviall privileges or facilities granted or allowed, and any riers
sions of this chapter to which it may be a party : Prorules or regulations which in any wise change, affect,
vided, however, That the Commission, by regulations,
or determine any part or the aggregate of such afore- may provide for exceptions from the requirements of
said rates, fares, and charges, or the value of the serv- this paragraph in the case of any class or classes of
ice rendered to the passenger, shipper, or consignee . contracts, agreements, or arrangements, the filing of
Such schedules shall be plainly printed in large type,
in its opinion, is not necessary in the public inand copies for the use of the public shall be kept which,
terest.
posted in two public and conspicuous places in every
depot, station, or office of such carrier where passen- (6) Form and manner of publishing, fling, and posting
gers or freight, respectively, are received for transporschedules ; incorporation of rates into individual tariffs ;
tation, in such form that they shall be accessible to
time for incorporation; rejection of schedules; unlawful
the public and can be conveniently inspected. The prouse
visions of this section shall apply to all traffic, transThe schedules required by this section to be filed
portation, and facilities defined in this chapter .
shall be published, filed, and posted in such form and
manner as the Commission by regulation shall pre(2) Schedule of rates through foreign country
scribe . The Commission shall, beginning 2 years after
Any common carrier subject to the provisions of this
5, 1976, require (a) that all rates shall be inchapter receiving freight in the United States to be February
carried through a foreign country to any place in the corporated into the individual tariffs of each common
carrier by railroad subject to this chapter or rail rateUnited States shall also in like manner print and keep
making association within 2 years after the initial pubopen to public inspection, at every depot or office
lication of the rate, or within 2 years after a change in
where such freight is received for shipment, schedules
showing the through rates established and charged by any rate is approved by the Commission, whichever is
later, and (b) that any rate shall be null and void with
such common carrier to all points in the United States
respect to any such carrier or association which does
beyond the foreign country to which it accepts freight
so incorporate such rate into its individual tariff .
for shipment ; and any freight shipped from the not
United States through a foreign country into the The Commission may, upon good cause shown, extend
such period of time . Notice of any such extension and
United States the through rate on which shall not
a statement of the reasons therefor shall be promptly
have been made public, as required by this chapter,
shall, before it is admitted into the United States from transmitted to the Congress . The Commission is ausaid foreign country, be subject to customs duties as if thorized to reject any schedule filed with it which is
not in accordance with this section and with such regsaid freight were of foreign production .
ulations . Any schedule so rejected by the Commission
(3) Change in rates, fares, etc.; notice required; simplification shall be void and its use shall be unlawful .
of schedules
(7) Transportation without fling and publishing rates forbidNo change shall be made in the rates, fares, and
den ; rebates; privileges
charges or joint rates, fares, and charges which have
been filed and published by any common carrier in No carrier, unless otherwise provided by this chapter, shall engage or participate in the transportation
compliance with the requirements of this section,
except after thirty days' notice to the Commission and of passengers or property, as defined in this chapter,
ached

Page 539

TITLE 49, APPENDIX-TRANSPORTATION

unless the rates, fares, and charges upon which the
same are transported by said carrier have been filed
and published in accordance with the provisions of
this chapter; nor shall any carrier charge or demand
or collect or receive a greater or less or different compensation for such transportation of passengers or
property, or for any service in connection therewith,
between the points named in such tariffs than the
rates, fares, and charges which are specified in the
tariff filed and in effect at the time ; nor shall any carrier refund or remit in any manner or by any device
any portion of the rates, fares, and charges so specified, nor extend to any shipper or person any privileges or facilities in the transportation of passengers
or property, except such as are specified in such tariffs .
(8) Preference to shipments for United States
In time of war or threatened war preference and
precedence shall, upon demand of the President of the
United States, be given, over all other traffic, for the
transportation of troops and material of war, and carriers shall adopt every means within their control to
facilitate and expedite the military traffic . And in
time of peace shipments consigned to agents of the
United States for its use shall be delivered by the carriers as promptly as possible and without regard to
any embargo that may have been declared, and no
such embargo shall apply to shipments so consigned .
(9) Schedule lacking notice of effective date
The Commission may reject and refuse to file any
schedule that is tendered for filing which does not
provide and give lawful notice of its effective date, and
any schedule so rejected by the Commission shall be
void and its use shall be unlawful .
(10) Penalty for failure to comply with regulations
In case of failure or refusal on the part of any carrier, receiver, or trustee to comply with the terms of any
regulation adopted and promulgated or any order
made by the Commission under the provisions of this
section, such carrier, receiver, or trustee shall be liable
to a penalty of $500 for each such offense, and $25 for
each and every day of the continuance of such offense, which shall accrue to the United States and
may be recovered in a civil action brought by the
United States.
(11) Jurisdiction of Commission over transportation by rail
and water
When property may be or is transported from point
to point in the United States by rail and water
through the Panama Canal or otherwise, the transportation being by a common carrier or carriers, and not
entirely within the limits of a single State, the Interstate Commerce Commission shall have jurisdiction of
such transportation and of the carriers, both by rail
and by water, which may or do engage in the same, in
the following particulars, in addition to the jurisdiction otherwise given by this chapter :
(a) To establish physical connection between the
lines of the rail carrier and the dock at which interchange of passengers or property is to be made by directing the rail carrier to make suitable connection between its line and a track or tracks which have been
constructed from the dock to the limits of the railroad
right-of-way, or by directing either or both the rail
and water carrier, individually or in connection with
one another to construct and connect with the lines of
the rail carrier a track or tracks to the dock . The Commission shall have full authority to determine and
prescribe the terms and conditions upon which these
connecting tracks shall be operated, and it may, either
in the construction or the operation of such tracks, determine what sum shall be paid to or by either carrier :
Provided, That construction required by the Commission under the provisions of this paragraph shall be
subject to the same restrictions as to findings of public
convenience and necessity and other matters as is construction required under section 1 of this Appendix .

§8

(b) To establish proportional rates or maximum, or
minimum, or maximum and minimum proportional
rates, • by rail to and from the ports to which the traffic is brought, or from which it is taken by the water
carrier, and to determine to what traffic and in connection with what vessels and upon what terms and
conditions such rates shall apply. By proportional
rates are meant those which differ from the corresponding local rates to and from the port and which
apply only to traffic which has been brought to the
port or is carried from the port by a common carrier
by water.
(12) Jurisdiction of Commission over carriers contracting
with water carriers operating to foreign ports
If any common carrier subject to this Act enters into
arrangements with any water carrier operating from a
port in the United States to a foreign country,
through the Panama Canal or otherwise, for the handling of through business between interior points of
the United States and such foreign country, the Commission may by order require such common carrier to
enter into similar arrangements with any or all other
lines of steamships operating from said port to the
same foreign country .
(Feb. 4, 1887, ch . 104, pt. I, 16, 24 Stat. 380; Mar. 2,
1889, ch . 382, § 1, 25 Stat . 855 ; June 29, 1906, ch . 3591,
§ 2, 34 Stat. 586; June 18, 1910, ch. 309, § 9, 36 Stat.
548 ; Aug. 24, 1912, ch. 390, 111, 37 Stat. 568 ; Aug. 29,
1916, ch. 417, 39 Stat. 604; Feb. 28, 1920, ch. 91,
§ § 409-413, 41 Stat . 483 ; Aug . 9, 1935, ch . 498, § 1, 49
Stat . 543 ; Sept. 18, 1940, ch . 722, title I, 18, 54 Stat .
910; Aug. 2, 1949, ch . 379, § 5, 63 Stat. 486; Feb . 5, 1976,
Pub . L. 94-210, title II, § 209, 90 Stat . 45.)
§ 7. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17, 1978,
92 Stat. 1466, 1470
Section repealed subject to an exception related to
transportation of oil by pipeline. For disposition of
this section in revised Title 49, Transportation, see
Table at beginning of Title 49 . See, also, notes following Table.
Prior to repeal, section read as follows :
§ 7 . Combinations to prevent continuous carriage of freight
prohibited
It shall be unlawful for any common carrier subject
to the provisions of this chapter to enter into any
combination, contract, or agreement, expressed or implied, to prevent, by change of time schedule, carriage
in different cars, or by other means or devices, the carriage of freights from being continuous from the place
of shipment to the place of destination; and no break
of bulk, stoppage, or interruption made by such
common carrier shall prevent the carriage of freights
from being and being treated as one continuous carriage from the place of shipment to the place of destination, unless such break, stoppage, or . interruption
was made in good faith for some necessary purpose,
and without any intent to avoid or unnecessarily interrupt such continuous carriage or to evade any of the
provisions of this chapter .
(Feb . 4, 1887, ch. 104, pt. I, § 7, 24 Stat . 382 ; Aug. 9,
1935, ch . 498, § 1, 49 Stat . 543 .)
§ 8. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17, 1978,
92 Stat. 1466, 1470
Section repealed subject to an exception related to
transportation of oil by pipeline. For disposition of
this section in revised Title 49, Transportation, see
Table at beginning of Title 49 . See, also, notes following Table .
Prior to repeal, section read as follows :

§9

TITLE 49, APPENDIX-TRANSPORTATION

Page 540

chapter to be done not to be so done, or shall aid or
§ 8. Liability in damages to persons injured by violation of
abet any such omission or failure, or shall be guilty of
law
any infraction of this chapter for which no penalty is
In case any common carrier subject to the provisions
of this chapter shall do, cause to be done, or permit to otherwise provided, or who shall aid or abet therein,
shall be deemed guilty of a misdemeanor, and shall,
be done any act, matter, or thing in this chapter proupon conviction thereof in any district court of the
hibited or declared to be unlawful, or shall omit to do
United States within the jurisdiction of which such ofany act, matter, or thing in this chapter required to be
fense was committed, be subject to a fine of not to
done, such common carrier shall be liable to the
exceed $5,000 for each offense : Provided, That if the
person or persons injured thereby for the full amount
of damages sustained in consequence of any such vio- offense for which any person shall be convicted as
aforesaid shall be an unlawful discrimination in rates,
lation of the provisions of this chapter, together with
fares, or charges for the transportation of passengers
a reasonable counsel or attorney's fee, to be fixed by
or property, such person shall, in addition to the fine
the court in every case of recovery, which attorney's
hereinbefore provided for, be liable to imprisonment
fee shall be taxed and collected as part of the costs in
in the penitentiary for a term of not exceeding two
the case.
years . or both such fine and imprisonment, in the dis(Feb . 4, 1887, ch. 104, pt. I, § 8, 24 Stat. 382 ; Aug . 9,
cretion of the court.
1935, ch . 498, § 1, 49 Stat. 543 .)
(2) False billing or classification by carrier; penalty
§ 9 . Repealed . Pub . L. 95-473, § 4(b), (c), Oct. 17, .1978,
Any common carrier subject to the provisions of this
92 Stat. 1466, 1470
chapter, or, whenever such common carrier is a corporation, any officer or agent thereof, or any person
Section repealed subject to an exception related to
acting for or employed by such corporation, who, by
transportation of oil by pipeline . For disposition of
means of false billing, false classification, false weighthis section in revised Title 49, Transportation, see
ing, or false report of weight, or by any other device or
Table at beginning of Title 49 . See, also, notes followmeans, shall knowingly and willfully assist, or shall
ing Table.
willingly suffer or permit, any person or persons to
Prior to repeal, section read as follows :
obtain transportation for property at less than the
regular rates then established and in force on the line
§ 9. Remedies of persons damaged ; election; witnesses
of transportation of such common carrier, shall be
Any person or persons claiming to be damaged by
deemed guilty of a misdemeanor, and shall, upon conany common carrier subject to the provisions of this
viction thereof in any court of the United States of
chapter may either make complaint to the Commiscompetent jurisdiction within the district in which
sion as hereinafter provided for, or may bring suit in
such offense was committed, be subject to a fine of not
his or their own behalf for the recovery of the damexceeding $5,000, or imprisonment in the penitentiary
ages for which such common carrier may be liable
for a term of not exceeding two years, or both, in the
under the provisions of this chapter in any district
discretion of the court, for each offense .
court of the United States of competent jurisdiction ;
but such person or persons shall not have the right to
(3) Obtaining lower rates by false billing, etc., or by false
pursue both of said remedies, and must in each case
claim; penalty
elect which one of the two methods of procedure
Any person, corporation, or company, or any agent
herein provided for he or they will adopt. In any such
or officer thereof, who shall deliver property for
action brought for the recovery of damages the court
transportation to any common carrier subject to the
before which the same shall be pending may compel
provisions of this chapter, or for whom, as consignor
any director, officer, receiver, trustee, or agent of the
or consignee, any such carrier shall transport propercorporation or company defendant in such suit to
ty, who shall knowingly and willfully, directly, or indiattend, appear, and testify in such case, and may
rectly, himself or by employee, agent, officer, or othercompel the production of the books and papers of
wise, by false billing, false classification, false weighsuch corporation or company party to any such suit .
ing, false representation of the contents of the pack(Feb . 4, 1887, ch . 104, pt . I, § 9, 24 Stat . 382; Mar. 3,
age or the substance of the property, false report of
1911, ch . 231, 1291, 36 Stat. 1167 ; Aug . 9, 1935, ch . 498,
weight, false statement, or by any other device or
§ 1, 49 Stat. 543; Oct. 15, 1970, Pub . L. 91-452, title II,
means, whether with or without the consent or con§ 243(a), 84 Stat. 931 .)
nivance of the carrier, its agent, or officer, obtain or
attempt to obtain transportation for such property at
§ 10. Repealed . Pub. L. 95-473, § 4(b), (c), Oct. 17,
less than the regular rates than established and in
force on the line of transportation ; or who shall know1978, 92 Stat. 1466, 1470
ingly and willfully, directly or indirectly, himself or by
Section repealed subject to an exception related to
employee, agent, officer, or otherwise, by false statetransportation of oil by pipeline . For disposition of
ment or representation as to cost, value, nature, or
this section in revised Title 49, Transportation, see
extent of injury, or by the use of any false bill, bill of
Table at beginning of Title 49 . See, also, notes followlading, receipt, voucher, roll, account, claim, certifiing Table.
cate, affidavit, or deposition, knowing the same to be
Prior to repeal, section read as follows :
false, fictitious, or fraudulent, or to contain any false,
fictitious, or fraudulent statement or entry, obtain or
regulations
by
carrier,
discrimination
;
pen§ 10. Violation of
attempt to obtain any allowance, refund, or payment
aloes
for damage or otherwise in connection with or growing
(1) Violation by carrier or officer ; penalty
out of the transportation of or agreement to transport
such property, whether with or without the consent or
Any common carrier subject to the provisions of this
chapter, or, whenever such common carrier is a corpoconnivance of the carrier, whereby the compensation .
of such carrier for such transportation, either before
ration, any director or officer thereof, or any receiver,
or after payment, shall in fact be made less than the
trustee, lessee, agent, or person acting for or employed
by such corporation, who, alone or with any other corregular rates then established and in force on the line
poration, company, person, or party, shall willfully do
of transportation, shall be deemed guilty of fraud,
or cause to be done, or shall willingly suffer or permit
which is declared to be a misdemeanor, and shall,
upon conviction thereof in any court of the United
to be done, any act, matter, or thing in this chapter
States of competent jurisdiction within the district in
prohibited or declared to be unlawful, or who shall aid
or abet therein, or shall willfully omit or fail to do any
which such offense was wholly or in part committed,
act, matter, or thing in this chapter required to be
be subject for each offense to a fine of not exceeding
$5,000 or imprisonment in the penitentiary for a term
done, or shall cause or willingly suffer or permit any
of not exceeding two years, or both in the discretion of
act, matter, or thing so directed or required by this

+,

1
i t

'(

Page 541

TITLE 49, APPENDIX-TRANSPORTATION

the court: Provided, That the penalty of imprisonment shall not apply to artificial persons .
(4) Inducing unjust discrimination ; penalty; liability for dama~
If any such person, or any officer or agent of any
such corporation or company, shall, by payment of
money or other thing of value, solicitation, or otherwise, induce or attempt to induce any common carrier
subject to the provisions of this chapter, or any of its
officers or agents, to discriminate unjustly in his, its,
or their favor as against any other consignor or consignee in the transportation of property, or shall aid
or abet any common carrier in any such unjust discrimination, such person or such officer or agent of
such corporation or company shall be deemed guilty
of a misdemeanor, and shall, upon conviction thereof
in any court of the United States of competent jurisdiction within the district in which such offense was
committed, be subject to a fine of not exceeding
$5,000, or imprisonment in the penitentiary for a term
of not exceeding two years, or both, in the discretion
of the court, for each offense ; and such person, corporation, or company shall also, together with said
common carrier, be liable, jointly or severally, in an
action to be brought by any consignor or consignee
discriminated against in any court of the United
States of competent jurisdiction for all damages
caused by or resulting therefrom .
(Feb. 4, 1887, ch. 104, pt. I, $ 10, 24 Stat. 382; Mar. 2,
1889, ch. 382, $ 2, 25 Stat . 857 ; June 18, 1910, ch . 309,
§ 10, 36 Stat. 549; Feb . 28, 1920, ch. 91, § 414, 41 Stat.
483 ; June 19, 1934, ch. 652, § 602(b), 48 Stat . 1102 ; Aug.
9, 1935, ch. 498, 11. 49 Stat. 543 .)

812

Stat . 497; July 16, 1935, ch . 383, 49 Stat. 481 ; Aug . 9,
1935, ch. 498, 4 1, 49 Stat. 543.)
812 . Repealed . Pub. L. 95-473, § 4(b), (c), Oct. 17,
1978, 92 Stat. 1466, 1470
Section repealed
subject
to an exception related to
transportation
of oil
by pipeline
. For` disposition of
this section
in revised
Title
Table
at beginning
of Title
49 49, Transportation, see
. See, also, notes followins Table .
Prior
912 . Authority and duties of Commission ; witnesses; deposi .
tions

(1) Authority, duties, and proceedings of Commission ; witnesses; exemption from applicability of chapter for persons, class of persons, etc .; procedures for establishment
and revocation
(a) The Commission shall have authority, in order to
perform the duties and carry out the objects for which
it was created, to inquire into and report on the management of the business of all common carriers subject to the provisions of this chapter, and to inquire
into and report on the management of the business of
persons controlling, controlled by, or under a common
control with, such carriers, to the extent that the business of such persons is related to the management of
the business of one or more such carriers, and the
Commission shall keep itself informed as to the
manner and method in which the same are conducted .
The Commission may obtain from such carriers and
persons such information as the Commission deems
necessary to carry out the provisions of this chapter ;
811 . Repealed . Pub. L. 95-473, § 4(b), (c), Oct . 17,
and may transmit to Congress from time to time such
1978, 92 Stat. 1466, 1470
recommendations (including recommendations as to
Section repealed subject to an exception related to additional legislation) as the Commission may deem
transportation of oil by pipeline . For disposition of
necessary. The Commission is authorized and required
this section in revised Title 49, Transportation, see
to execute and enforce the provisions of this chapter ;
Table at beginning of Title 49 . See, also, notes followand, upon the request of the Commission, it shall be
ing Table .
the duty of any United States attorney to whom the
Prior to repeal, section read as follows :
Commission may apply to institute in the proper court
and to prosecute under the direction of the Attorney
§ 11 . Interstate Commerce Commission ; appointment, term,
General of the United States all necessary proceedings
and qualifications of Commissioners
for the enforcement of the provisions of this chapter
A commission is created and established to be known
and for the punishment of all violations thereof, and
as the Interstate Commerce Commission, which shall
the costs and expenses of such prosecution shall be
be composed of eleven Commissioners, who shall be
paid out of the appropriation for the expenses of the
appointed by the President, by and with the advice courts of the United States ; and for the purposes of
and consent of the Senate. The Commissioners apthis chapter the Commission shall have power to repointed under this chapter and their successors, shall
quire, by subpoena, the attendance and testimony of
continue in office for terms of seven years, except that
witnesses and the production of all books, papers, tarany person chosen to fill a vacancy shall be appointed
iffs, contracts, agreements, and documents relating to
only for the unexpired term of the Commissioner
any matter under investigation .
whom he shall succeed. Of the Commissioners in
(b) Whenever the Commission determines, upon peoffice on January 1, 1926, the term of one shall expire
tition by the Secretary or an interested party or upon
December 31 in each of the years 1926, 1927, and 1932
its own initiative, in matters relating to a common carand the terms of two shall expire December 31, in rier by railroad subject to this chapter, after notice
each of the years 1928, 1929, 1930, and 1931 . Any Comand reasonable opportunity for a hearing, that the apmissioner may be removed by the President for ineffiplication of the provisions of this chapter (i) to any
ciency, neglect of duty, or malfeasance in office . Not
person or class of persons, or (ii) to any services or
more than six of the Commissioners shall be appointtransactions by reason of the limited scope of such
ed from the same political party . No person in the
services or transactions, is not necessary to effectuate
employ of or holding any official relation to any
the national transportation policy declared in this Act,
common carrier subject to the provisions of this chapwould be an undue burden on such person or class of
ter, or owning stock or bonds thereof, or who is in any
persons or on interstate and foreign commerce, and
manner pecuniarily interested therein, shall enter
would serve little or no useful public purpose, it shall,
upon the duties of or hold such office . Said Commisby order, exempt such persons, class of persons, servsioners shall not engage in dny other business, vocaices, or transactions from such provisions to the
tion, or employment . No vacancy in the Commission
extent and for such period of time as may be specified
shall impair the right of the remaining Commissioners
in such order . The Commission may, by order, revoke
to exercise all the powers of the Commission . Upon
any such exemption whenever it finds, after notice
the expiration of his term of office a Commissioner
and reasonable opportunity . for a hearing, that the apshall continue to serve until his successor is appointed
plication of the provisions of this chapter to the exand shall have qualified.
empted person, class of persons, services, or transactions, to the extent specified in such order, is neces(Feb . 4, 1887, ch. 104, pt . I, § 11, 24, 24 Stat. 383, 387 ;
sary to effectuate the national transportation policy
June 29, 1906, ch. 3591, § 8, 34 Stat . 595 ; Aug . 9, 1917,
declared in this Act and to achieve effective regulation
ch . 50, § 1, 40 Stat. 270; Feb . 28, 1920, ch . 91, § 440, 41

O-1110 n - on -

10 N.J 101 . f11'1

813

TITLE 49, APPENDIX-TRANSPORTATION Page 542

by the Commission, and would serve a useful public Stat . 743; May 28, 1896, ch. 252, § 19, 29 Stat . 184; Mar.
purpose.
3, 1911, ch . 23.1, § 291, 36 Stat . 1167 ; Feb . 28, 1920, ch .
91, § 415, 41 Stat . 484 ; Aug. 9, 1935, ch . 498, 11, 49
(2) Attendance of witnesses and production of documents
Such attendance of witnesses, and the production of . Stat. 543 ; Sept. 18, 1940, ch . 722, title I, g 9(a), 54 Stat .
such documentary evidence, may be required from any 910 ; June 25, 1948, ch. 646, § 1, 62 Stat. 909; Feb. 5,
place in the United States, at any designated place of 1976, Pub . L. 94-210, title II, 1207, 90 Stat . 42 .)
hearing. And in case of disobedience to a subpoena the
Commission, or any party to a proceeding before the 813. Repealed . Pub. L. 95-473, § 4(b), (c), Oct . 17,
commission, may invoke the aid of any court of the
1978, 92 Stat. 1466, 1470
United States in requiring the attendance and testimony of witnesses and the production of books, papers,
Section repealed subject to an exception related to
and documents under the provisions of this section.
transportation of oil by pipeline . For disposition of
this section in revised Title 49, Transportation, see
(3) Compelling attendance and testimony of witnesses, etc .
And any of the district courts of the United States Table at beginning of Title 49. See, also, notes followwithin the jurisdiction of which such inquiry is carried ing Table .
Prior to repeal, section read as follows :
on may, in case of contumacy or refusal to obey a subpoena issued to any common carrier subject to the
provisions of this chapter, or other person, issue an 613 . Complaints to and investigations by Commission
order requiring such common carrier or other person
to appear before said Commission (and produce books (1) Complaint to Commission of violation of law by carrier,
and papers if so ordered) and give evidence touching
reparation ; investigation
the matter in question ; and any failure to obey such
Any
person, firm, corporation, company, or associaorder of the court may be punished by such court as a
tion,
or any mercantile, agricultural, or manufacturing
.
contempt thereof
society or other organization, or any body politic or
(4) Depositions
municipal organization, or any common carrier comThe testimony of any witness may be taken, at the plaining of anything done or omitted to be done by
instance of a party, in any proceeding or investigation any common carrier subject to the provisions of this
depending [pending] before the Commission, by depo- chapter in contravention of the provisions thereof,
sition, at any time after a cause or proceeding is at may apply to said Commission by petition, which shall
issue on petition and answer . The Commission may briefly state the facts; whereupon a statement of the
also order testimony to be taken by deposition in any complaint thus made shall be forwarded by the Comproceeding or investigation pending before it, at any mission to such common carrier, who shall be called
stage of such proceeding or investigation . Such deposi- upon to satisfy the complaint, or to answer the same
tions may be taken before any judge of any court of in writing, within a reasonable time, to be specified by
the United States, or any United States commissioner, the Commission . If such common carrier within the
or any clerk of a district court, or any chancellor, jus- time specified shall make reparation for the
fury altice, or judge of a supreme or superior court, mayor or
lie to have been done, the common carrier shall be
chief magistrate of a city, judge of a county court, or le
relieved of liability to the complainant only for the
court of common please of any of the United States,
or any notary public, not being of counsel or attorney particular violation of law thus complained of . If such
to either of the parties, nor interested in the event of carrier or carriers shall not satisfy the complaint
the proceeding or investigation . Reasonable notice within the time specified, or there shall appear to be
must first be given in writing by the party or his attor- any reasonable ground for investigating said comney proposing to take such deposition to the opposite plaint, it shall be the duty of the Commission to invesparty or his attorney of record, as either may be near- tigate the matters complained of in such manner and
est, which notice shall state the name of the witness by such means as it shall deem proper .
and the time and place of the taking of his deposition .
Any person may be compelled to appear and depose, (2) Complaints by State commissions ; inquiry on Commission's own motion; expenses of State commissions
and to produce documentary evidence, in the same
manner as witnesses may be compelled to appear and
Said Commission shall, in like manner and with the
testify and produce documentary evidence before the same authority and powers, investigate any complaint
Commission as hereinbefore provided.
forwarded by the railroad commissioner or railroad
commission or any State or Territory at the request of
(5) Oath; subscription of testimony on deposition
Every person deposing as herein provided shall be such commissioner or commission, and the Interstate
cautioned and sworn (or affirm, if he so request) to Commerce Commission shall have full authority and
testify the whole truth, and shall be carefully exam- power at any time to institute an inquiry, on its own
ined . His testimony shall be reduced to writing by the motion, in any case and as to any matter or thing conmagistrate taking the deposition, or under his direc- cerning which a complaint is authorized to be made, to
tion, and shall, after it has been reduced to writing, be or before said Commission by any provision of this
chapter, or concerning which any question may arise
subscribed by the deponent .
under any of the provisions of this chapter, or relating
;
riling
of
depositions
(6)IfDeposition
in foreign
a witness
whose country
testimony may be desired to be to the enforcement of any of the provisions of this
. And the said Commission shall have the same
taken by deposition be in a foreign country, the depo- chapter
t
nas proceed with
any inquiry
sition may be taken before an officer or person desig- tpowers
oitu ecand
on its
iit motion
though had of
nated by the Commission, or agreed upon by the parthe provisi by f this
petition under any
ties by stipulation in writing to be filed with the Compower
a
o makea and
nfo
a
this
chapter,
rder,
orders
including
in
t
ow
t
and
mission. All depositions must be promptly filed with eenforce any o
or
the case,, or relating to
the Commission.
the matter or thing concerning which the inquiry is
(7) Fees for depositions
had excepting orders for the payment of money. No
Witnesses whose depositions are taken pursuant to complaint shall at any time be dismissed because of
this chapter, and the magistrate or other officer the absence of direct damage to the complainant . Reptaking the same, shall severally be entitled to the resentatives of State commissions sitting with the
same fees as are paid for like services in the courts of Commission, under the provisions of this section, in
the United States .
cases pending before the Commission, shall receive
(Feb . 4, 1887, ch . 104, pt . I, 112, 24 Stat . 383; Mar . 2, such allowances for travel and subsistence expense as
1889, ch . 382, 4 3, 25 Stat. 858 ; Feb . 10, 1891 . ch . 128, 26 the Commission shall provide .

Page 543

TITLE 49, APPENDIX-TRANSPORTATION

013a

(3) Investigation involving State regulations ; conference of sions of this paragraph shall apply notwithstanding
State and interstate commissions
the laws or constitution of any State, or the pendency
of any proceeding before any State court or other
Whenever in any investigation under the provisions
State authority . Nothing in this paragraph shall
of this chapter, or in any investigation instituted upon
affect the authority of the Commission to institue [inpetition of the carrier concerned, which petition is authorized to be filed, there shall be brought in issue stitute] an investigation or to act in such investigation
any rate, fare, charge, classification, regulation, or as provided in paragraphs (3) and (4) of this section .
practice, made or imposed by authority of any State,
(6) Petition for commencement of proceeding for issuance,
the Commission, before proceeding to hear and disamendment, or repeal of order, etc., relating to common
pose of such issue, shall cause the State or States incarriers by railroads ; grant or denial ; judicial review;
terested to be notified of the proceeding . The Commislimitations; definition
sion may confer with the authorities of any State
having regulatory jurisdiction over the class of per- (a) Whenever, pursuant to section 553(e) of title 5,
sons and corporations subject to this chapter or chap- an interested person (including a government entity)
ter 12 of this title with respect to the relationship be- petitions the Commission for the commencement of a
proceeding for the issuance, amendment, or repeal of
tween rate structures and practices of carriers subject
to the jurisdiction of such State bodies and of the an order, rule, or regulation relating to common carriCommission; and to that end is authorized and empow- ers by railroads under this Act, the Commission shall
ered, under rules to be prescribed by it, and which grant or deny such petition within 120 days after the
may be modified from time to time, to hold joint hear- date of receipt of such petition . If the Commission
ings with any such State regulating bodies on any grants such a petition, it shall commence an approprimatters wherein the Commission is empowered to act ate proceeding as soon thereafter as practicable . If the
Commission denies such a petition, it shall set forth,
and where the rate-making authority of a State is or
and publish in the Federal Register, Its reasons for
may be affected by the action taken by the Commission. The Commission is also authorized to avail itself such denial .
(b) If the Commission denies a petition under subdiof the cooperation, services, records, and facilities of
vision (a) (or if it fails to act thereon within the 120such State authorities in the enforcement of any provision of this chapter or chapter 12 of this Appendix . day period established by such subdivision), the petimay commence a civil action in an appropriate
(4) Duty of Commission where State regulations result in dis- tioner
court of appeals of the United States for an order directing the Commission to initiate a proceeding to
Whenever in any such investigation the Commission,
take the action requested in such petition. Such an
after full hearing, finds that any such rate, fare, action shall be commenced within 60 days after the
charge, classification, regulation, or practice causes date of such denial or, where appropriate, within 60
any undue or unreasonable advantage, preference, or days after the date of expiration of such 120-day
prejudice as between persons or localities in intrastate
period .
commerce on the one hand and interstate or foreign
(c) If the petitioner, in an action commenced under
commerce on the other hand, or any undue, unreason- subdivision (b), demonstrates to the satisfaction of the
able, or unjust discrimination against, or undue court, by a preponderance of the evidence in the
burden on, interstate or foreign commerce (which the
record before the Commission or, in an action based
Commission may find without a separation of interon a petition on which the Commission failed to act, in
state and intrastate property, revenues, and expenses, a new proceeding before such court, that the action reand without considering in totality the operations or quested in such petition to the Commission is necesresults thereof of any carrier, or group or groups of
sary and that the failure of the Commission to take
carriers wholly within any State), which is hereby forsuch action will result in the continuation of practices
bidden and declared to be unlawful, it shall prescribe which are not consistent with the public interest or in
the rate, fare, or charge, or the maximum or mini- accordance with this Act, such court shall order the
mum, or maximum and minimum, thereafter to be
Commission to initiate such action .
charged, and the classification, regulation, or practice
(d) In any action under this paragraph, a court shall
thereafter to be observed, in such manner as, in its have no authority to compel the Commission to take
judgment, will remove such advantage, preference, any action other than the initiation of a proceeding
prejudice, discrimination, or burden . Such rates, fares, for the issuance, amendment, or repeal of an order,
charges, classifications, regulations, and practices rule, or regulation under this Act .
shall be observed while in effect by the carriers parties (e) As used in this paragraph, the term "Commisto such proceeding affected thereby, the law of any sion" includes any division, individual s Commissioner,
State or the decision or order of any State authority
administrative law judge, employee board, or any
to the contrary notwithstanding .
other person authorized to act on behalf of the Com(5) Exclusive authority to determine and prescribe intrastate mission in any part of the proceeding for the issuance,
amendment, or repeal of any order, rule, or regulation
rates; prerequisites; procedures
The Commission shall have exclusive authority, under this Act relating to common carriers by raftroad .
upon application to it, to determine and prescribe
intrastate rates if,(Feb . 4, 1887, ch . 104, pt. I, § 13, 24 Stat. 383 ; June 18,
(a) a carrier by railroad has -filed with an appropri1910, ch. 309, § 11, 36 Stat . 550; Feb . 28, 1920, ch. 91,
ate administrative or regulatory body of a State, a
§ 416, 41 Stat . 484; Aug. 9, 1935, ch . 498, 11, 49 Stat.
change in an intrastate rate, fare, or charge, or a
543 ; Sept. 18, 1940, ch . 722, title I, § 9(b), (c), 54 Stat.
change in a classification, regulation, or practice
910 ; Aug. 12, 1958, Pub. L. 85-625, § 4, 72 Stat . 570;
that has the effect of changing such a rate, fare, or Feb . 5, 1976, Pub . L. 94-210, title II, 1210, title III,
charge, for the purpose of adjusting such rate, fare, § 304(b), 90 Stat. 46, 52 ; Oct. 19, 1976, Pub. L. 94-555,
or charge to the rate charged on similar- traffic
title II, § 220(1), 90 Stat . 2630 .)
moving in interstate or foreign commerce ; and
(b) the State administrative or regulatory body § 13a Repealed . Pub. L. 95-473, § 4(b), (c), Oct. 17,
has not, within 120 days after the date of such filing,
1978, 92 Stat . 1466, 1470
acted finally on such change .
Section repealed subject to an exception related to
Notice of the application to the Commission shall be
served on the appropriate State administrative or reg- transportation of oil by pipeline. For disposition of
ulatory body . Upon the filing of such an application, this section in revised Title 49, Transportation, see
the Commission shall determine and prescribe, accordTable at beginning of Title 49 . See, also, notes following to the standards set forth in paragraph (4) of this ing Table.
section, the rate thereafter to be charged . The proviPrior to repeal, section read as follows :

014

TITLE 49, APPENDIX-TRANSPORTATION

Page 544

change, in whole or in part, of the operation or service
of such train or ferry, and (b) the continued operation
or service of such train or ferry without discontinumination
(1) A carrier or carriers subject to this chapter, if ance or change, in whole or in part, will constitute an
their rights with respect to the discontinuance or unjust and undue burden upon the interstate operchange, in whole or in part, of the operation or service ations of such carrier or carriers or upon interstate
of any train or ferry operating from a point in one commerce . When any petition shall be filed with the
State to a point in any other State or in the District of Commission under the provisions of this paragraph
Columbia, or from a point in the District of Columbia the Commission shall notify the Governor of the
to a point in any State, are subject to any provision of State in which such train or ferry is operated at least
the constitution or statutes of any State or any regula- thirty days in advance of the hearing provided for in
tion or order of (or are the subject of any proceeding this paragraph, and such hearing shall be held by the
pending before) any court or an administrative or reg- Commission in the State in which such train or ferry
ulatory agency of any State, may, but shall not be re- is operated ; and the Commission is authorized to avail
quired to, file with the Commission, and upon such itself of the cooperation, services, records and facilities
filing shall mail to the Governor of each State in of the authorities in such State in the performance of
which such train or ferry is operated; and post in its functions under this paragraph .
every station, depot or other facility served thereby, (Feb . . 4, 1887, ch. 104, pt. I, § 13a, as added Aug. 12,
notice at least thirty days in advance of any such pro- 1958, Pub. L. 85-625, § 5, 72 Stat . 571 .)
posed discontinuance or change . The carrier or carriers filing such notice may discontinue or change any 014 . Repealed. Pub . L. 95-473, § 4(b), (c), Oct. 17,
such operation or service pursuant to such notice
1978, 92 Stat . 1466, 1470
except as otherwise ordered by the Commission pursuant to this paragraph, the laws or constitution of any
Section repealed subject to an exception related to
State, or the decision or order of . or the pendency of transportation of oil by pipeline . For disposition of
any proceeding before, any court or State authority to this section in revised Title 49, Transportation, see
the contrary notwithstanding . Upon the filing of such Table at beginning of Title 49 . See, also, notes follownotice the Commission shall have authority during ing Table.
said thirty days' notice period, either upon complaint
Prior to repeal, section read as follows :
or upon its own initiative without complaint, to enter
upon an investigation of the proposed discontinuance § 14 . Reports and decisions of Commission
or change. Upon the institution of such investigation,
the Commission, by order served upon the carrier or (1) Reports of investigations no shall be
carriers affected thereby at least ten days prior to the
Whenever an investigation
made by said
day on which such discontinuance or change would
otherwise become effective, may require such train or Commission, it shall be its duty to make a report in
ferry to be continued in operation or service, in whole writing in respect thereto, which shall state the conor in part, pending hearing and decision in such inves- clusions of the Commission, together with its decision,
tigation, but not for a longer period than four months order, or requirement in the premises ; and in case
beyond the date when such discontinuance or change damages are awarded, such report shall include the
would otherwise have become effective . If, after hear- findings of fact on which the award is made .
ing in such investigation whether concluded before or
(2) Record of reports; copies
after such discontinuance or change has become effecAll reports of investigations made by the Commistive, the Commission finds that the operation or service of such train or ferry is required by public conven- sion shall be entered of record, and a copy thereof
ience and necessity and will not unduly burden inter- shall be furnished to the party who may have comstate or foreign commerce, the Commission may by plained, and to any. common carrier that may have
order require the continuance or restoration of oper- been complained of
ation or service of such train or ferry, in whole or in (3) Publication of reports and decisions; printing and distripart, for a period not to exceed one year from the date
bution of annual reports
of such order. The provisions of this paragraph shall
The Commission may provide for the publication of
not
supersedeofthe
of any Stateororregulatory
the ordersbody
or its
decisions
in suchinformation
form and manner
as
regulations
anylaws
administrative
may reports
be best and
adapted
for public
and use,
of any State applicable to such dirdiscontinuance is and such authorized publications shall be competent
change
w unless noticemis
c as in this
provided
ided n evidence of the reports and decisions of the Commisth expiration of
or e with the
rder by the Commission
soafter such investigation are- sion therein contained in all courts of the United
quiring the continuance or restoration of operation or States and of the several States
without
any further
. The
Commission
may
service,
the
jurisdiction
of
any
State
as
to
such
disconproof
or
authentication
thereof
tinuance or change shall no longer be superseded also cause to be printed for early distribution its
unless the procedure provided by this paragraph shall annual reports .
(Feb. 4, 1887, ch. 104, pt . I, 114 . 24 Stat . 384 ; Mar. 2,
again be invoked by the carrier or carriers .
(2) Where the discontinuance or change, in whole or 1889, ch . 382, § 4, 25 Stat . 859 ; June 29, 1906, ch . 3591,
in part, by a carrier or carriers subject to this chapter, § 3, 34 Stat. 589 ; Feb. 28, 1920, ch. 91, 1417, 41 Stat.
of the operation or service of any train or ferry oper- 484; Aug . 9, 1935, ch . 408, § 1, 49 Stat. 543.)
ated wholly within the boundaries of a single State is
prohibited by the constitution or statutes of any State 015 . Repealed. Pub. L. 95-473, 0 4(b), (c), Oct . 17,
or where the State authority having jurisdiction
1978, 92 Stat. 1466, 1470; Pub . L. 96-258, § 3(b),
thereof shall have denied an application or petition
1
June 3, 1980, 94 Stat. 427
t,
duly filed with it by said carrier or carriers for authority to discontinue or change, in whole or in part, the Section repealed subject to an exception related to
operation or service of any such train or ferry or shall transportation of oil by pipeline . Section 401 of Pub .
not have acted finally on such an application or peti- L . 95-607, which amended par . (8)(c) and (d) of this
tion within one hundred and twenty days from the section subsequent to the repeal of this section by
presentation thereof, such carrier or carriers may peti- Pub . L . 95-473, was repealed by Pub . L. 96-258, affection the Commission for authority to effect such dis- tive July 1, 1980, as provided by section 3(c) of Pub L .
continuance or change . The Commission may grant 96-258 . For disposition of this section in revised Title
such authority only after full hearing and upon find- 49, Transportation, see Table at beginning of Title 49 .
ings by it that (a) the present or future public conven- See, also, notes following Table .
ience and necessity permit of such discontinuance or
Prior to repeal, section read as follows :
§ 13a . Discontinuance or change of the operation or service
of trains or ferries; notice ; investigation ; hearing ; deter.

Page 545

TITLE 49, APPENDIX-TRANSPORTATION

§ 15. Determination of rates, routes, etc .; routing of traffic ;
disclosures, etc.
(1) Commission empowered to determine and prescribe rates,
classifications, etc .
Whenever, after full hearing, upon a complaint
made as provided in section 13 of this Appendix, or
after full hearing under an order for investigation and
hearing made by the Commission on its own initiative,
either in extension of any pending complaint or without any complaint whatever, the Commission shall be
of opinion that any individual or joint rate, fare, or
charge whatsoever demanded, charged, or collected by
any common carrier or carriers subject to this chapter
for the transportation of persons or property, as defined in section 1 of this Appendix, or that any individual or joint classification, regulation, or practice
whatsoever of such carrier or carriers subject to the
provisions of this chapter, is or will be unjust or unreasonable or unjustly discriminatory or unduly preferential or prejudicial, or otherwise in violation of any
of the edv
a of this chapter, the
s c is
authorized and empowered to determine and prescribe
what will
the just and reasonable
f
individual
joint rate, fare, or charge, or rates, fares, .or charges,
to be thereafter observed in such case, or the maximum or minimum, or maximum and minimum, to be
charged, and what individual or joint classification,
regulation, or practice is or will be just, fair, and reasonable, to be thereafter followed, and to make an
order that the carrier or carriers shall cease and desist
from such violation to the extent to which the Commission finds that the same does or will exist, and
shall not thereafter publish, demand, or collect any
rate, fare, or charge for such transportation other
than the rate, fare, or charge so prescribed, or in
excess of the maximum or less than the minimum so
prescribed, as the case may be, and shall adopt the
classification and shall conform to and observe the
regulation or practice so prescribed .
(2) Orders of Commission
Except as otherwise provided in this chapter, all
orders of the Commission, other than orders for the
payment of money, shall take effect within such reasonable time as the Commission may prescribe . Such
orders shall continue in force until its further order,
or for a specified period of time, according as shall be
prescribed in the order, unless the same shall be suspended or modified or set aside by the Commission, or
be suspended or set aside by a court of competent jurisdiction .
(3) Establishment of through routes, joint classifications,
joint rates, fares, etc .
The Commission may, and it shall whenever deemed
by it to be necessary or desirable in the public interest,
after full hearing upon complaint or upon its own initiative without complaint, establish through routes,
joint classifications, and joint rates, fares, or charges,
applicable to the transportation of passengers or property by carriers subject to this chapter, or by carriers
by railroad subject to this chapter and common carriers by water subject to chapter 12 of this Appendix, or
the maxima or minima, or maxima and minima, to be
charged, and - the divisions of such rates, fares, or
charges as hereinafter provided, and the terms and

§ 15

public interest, without regard to the provisions of
paragraph (4) of this section . With respect to carriers
by railroad, in determining whether any such cancellation or proposed cancellation involving any common
carrier by railroad is consistent with the public interest, the Commission shall, to the extent applicable, (a)
compare the distance traversed and the average transportation time and expense required using the
through route, and the distance traversed and the average transportation time and expense required using
alternative routes, between the points served by such
through route, (b) consider any reduction in energy
consumption which may result from such cancellation,
and (c) take into account the overall impact of such
cancellation on the shippers and carriers who are affected thereby .
(4) Through routes to embrace entire length of railroad ; temporary through routes
In establishing any such through route the Commission shall not (except as provided in section 3 of this
Appendix, and except where one of the carriers is a
water line) require any carrier by railroad, without its
consent, to embrace in such route substantially less
than the entire length of its railroad and of any intermediate railroad operated in conjunction and under a
common management or control therewith, which lies
between the termini of such proposed through route,
(a) unless such inclusion of lines would make the
through route unreasonably long as compared with
another practicable through route which could otherwise be established, or (b) unless the Commission finds
that the through route proposed to be established is
needed in order to provide adequate, and more efficient or more economic, transportation: Provided,
however, That in prescribing through routes the .Commission shall, so far as is consistent with the public interest, and subject to the foregoing- limitations in
clauses (a) and (b) of this paragraph, give reasonable
preference to the carrier by railroad-which originates
the traffic . No through route and joint rates applicable thereto shall be established by the Commission for
the purpose of assisting any carrier that would participate therein to meet its financial needs . In time of
shortage of equipment, congestion of traffic, or other
emergency declared by the Commission, it may (either
upon complaint or upon its own initiative without
complaint, at once, if it so orders, without answer or
other formal pleadings by the interested carrier or
carriers, and with or without notice, hearing, or the
making or filing of a report, according as the Commission may determine) establish temporarily such
through routes as in its opinion are necessary or desirable in the public interest .

(5) Transportation of livestock in carload lots; services included
Transportation wholly by railroad of ordinary livestock in carload lots destined to or received at public
stockyards shall include all necessary service of unloading and reloading en route, delivery at public
stockyards of inbound shipments into suitable pens,
and receipt and loading at such yards of outbound
conditions
under which such through routes shall be shipments, without extra charge therefor to the shipoperated. The Commission shall . not, however, estabper, consignee, or owner, except in cases where the .un<.
lish any through route, cl assification, or practice, or
loading or reloading en route is at the request of the .
any rate, fare, or charge, between street electric passhipper, consignee, or owner, or to try an intermediate
senger railways not engaged in the general business of
market, or to comply with quarantine regulations . The
transporting freight in addition to their passenger and
express business, and railroads of a different charac- Commission may prescribe or approve just and reasonable rules governing each of such excepted services .
ter . If any tariff or schedule canceling any through
Nothing in this paragraph shall be construed to affect
route or joint rate, fare, charge, or classification, withthe duties and liabilities of the carriers existing . on
out the consent of all carriers parties thereto or authorization by the Commission, is suspended by the February 28, 1920, by virtue : of law respecting the
transportation of other than ordinary livestock, or the
Commission for investigation, the burden of proof
duty of performing service as to shipments other than
shall be upon the carrier or carriers proposing such
those to or from public stockyards .
cancelation to show that it is consistent with the

§ 15

TITLE 49, APPENDIX-TRANSPORTATION

Page 546

(6) Commission to establishment just divisions of joint rates, fare, or charge, or any new individual or joint classififares, or charges; adjustments; procedures applicable
cation, or any new individual or joint regulation or
(a) Whenever, after full hearing upon complaint or practice affecting any rate, fare, or charge, the Comupon its own initiative, the Commission is of opinion mission shall have, and it is given, authority, either
that the divisions of joint rates, fares, or charges, ap- upon complaint or upon its own initiative without
plicable to the transportation of passengers or propercomplaint, at once, and if it so orders without answer
ty, are or will be unjust, unreasonable, inequitable, or
or other formal pleading by the interested carrier or
unduly preferential or prejudicial as between the car- carriers, but upon reasonable notice, to enter upon a
riers parties thereto (whether agreed upon by such
hearing concerning the lawfulness of such rate, fare,
carriers, or any of them, or otherwise established), the
charge, classification, regulation, or practice; and
Commission shall by order prescribe the just, reason- pending such hearing and the decision thereon the
ble, and equitable divisions thereof to be received by Commission, upon filing with such schedule and delivthe several carriers, and in cases where the joint rate,
ering to the carrier or carriers affected thereby
fare, or charge was established pursuant to a finding statement in writing of its reasons for such suspen-a
or order of the Commission and the divisions thereof
may from time to time suspend the operation of
are found by it to have been unjust, unreasonable, or sion,
such schedule and defer the use of such rate, fare,
inequitable, or unduly preferential or prejudicial, the
charge, classification, regulation, or practice, but not
Commission may also by order determine what (for
for a longer period than seven months beyond the
the period subsequent to the filing of the complaint or
when it would otherwise go into effect ; and after
petition or the making of the order of investigation) time
full hearing, whether completed before or after the
would
have
been the
reasonable
and several
equitablecarriers,
di- rate,goes
fare,into
charge,
classification,
regulation,
practice
visions
thereof
to just,
be received
by the
effect,
the Commission
may makeorsuch
order
and require adjustment to be made in accordance with reference thereto as would be proper in a protherewith. In so prescribing and determining the divi- ceeding initiated after it had become effective . if the
sions of joint rates, fares, and charges, the Commisnot been concluded and
sion shall give due consideration, among other things, within the period
suspension, theproposed
prpon, orchange
p acto the efficiency with which the carriers concerned are ti rate, g,period of classification,
regulation o
operated, the amount of revenue required to pay their
c shall
shall go into
ito fed in at the end of such period ;; but .
respective operating expenses, taxes, and a fair return in
in case of a proposed increased rate or charse_for or in
on
their
railway
property
held
for
and
used
in
the
service of transportation, and the importance to the respect to the transportation of property, the Commismay by order require the interested carrier or carpublic of the transportation services of such carriers ; stun
riers to keep accurate account in detail of all amounts
and also whether any particular participating carrier
received by reason of such increase, specifying by
is an originating, intermediate, or delivering line, and
any other fact or circumstance which would ordinari- whom and in whose behalf such amounts are paid, and
ly, without regard to the mileage haul, entitle one car- upon completion of the hearing and decision may by
rier to a greater or less proportion than another carri- further order require the interested carrier or carriers
to refund, with interest, to the persons in whose
er of the joint rate, fare, or charge .
behalf such amounts were paid, such portion of such
(b) Notwithstanding any other provision of law, the
Commission shall, within 180 days after February 5, increased rates_ or charges as by its decision shall "be
1976, establish, by rule, standards and procedures for found not justified. At any hearing involving a change
the conduct of proceedings for the adjustment of divi- in a rate, fare, charge, or classification, or in a rule,
sions of joint rates or fares (whether prescribed by the regulation, or practice, after September 18, 1940, the
Commission or otherwise) in accordance with the pro- burden of proof shall be upon the carrier to show that
visions of this paragraph . The Commission shall issue the proposed changed rate, fare, charge, classification,
rule, regulation, or practice is just and reasonable, and
a final order in all such proceedings within 270 days
after the submission to the Commission of a case . If the Commission shall give to the hearing and decision
the Commission is unable to issue such a final order of such questions preference over all other questions
pending before it and decide the same as speedily as
within such time, it shall issue a report to the Conpossible. This paragraph shall not apply to common
gress setting forth the reasons for such inability,
carriers by railroad subject to this chapter .
(c) Al evidentiary proceedings conducted pursuant
to this paragraph shall be completed, in a case
(8) Commission to determine lawfulness of new rates ; applibrought upon a complaint, within 1 year following the
cability to common carrier by railroad ; suspensions ; acfiling of the complaint, or, in a case brought upon the
counts; hearing and basis of decision
Commission's initiative, within 2 years following the
commencement of such proceeding, unless the Com(a) Whenever a schedule is filed with the Commismission finds that such a proceeding must be extended
sion by a common carrier by railroad stating a new into permit a fair and expeditious completion of the pro- dividual or joint rate, fare, or charge, or a new individceeding . If the Commission is unable to meet any such ual or joint classification, regulation, or practice aftime requirement, it shall issue a report to the Confecting a rate, fare, or charge, the Commission may,
gress setting forth the reasons for such inability,
upon the complaint of an interested party or upon its
(d) Whenever a proceeding for the adjustment of diown initiative, order a hearing concerning the lawfulvisions of joint rates or fares (whether prescribed by ness of such rate, fare, charge, classification, regulathe Commission or otherwise established) is com- tion, or practice. The hearing may be conducted withmenced by the filing of a complaint with the Commis- out answer or other formal pleading, but reasonable
sion, the complaining carrier or carriers shall (i) notice shall be provided to interested parties . Such
attach thereto all of the evidence in support of their
hearing shall be completed and a final decision renposition, and (ii) during the course of such proceeding,
dered by the Commission not later than 7 months
file only rebuttal or reply evidence unless otherwise
after such rate, fare, charge, classification, regulation,
directed by order of the Commission . Upon receipt of or practice was scheduled to become effective, unless,
a notice of intent to file a complaint pursuant to this prior to the expiration of such 7-month period, the
paragraph, the Commission shall accord, to the party Commission reports in writing to the Congress that it
filing such notice, the same right to discovery that is unable to render a decision within such period, towould be accorded to a party filing a complaint pursugether with a full explanation of the reason for the
ant to this paragraph .
delay . If such a report is made to the Congress, the
(7) Commission to determine lawfulness of new rates; sus- final decision shall be made not later than 10 months
pension; refunds; nonapplicability to common carriers by after the date of the filing of such schedule . If the
railroad subject to chapter
final decision of the Commission is not made within
Whenever there shall be filed with the Commission the applicable time period, the rate, fare, charge, clasany schedule stating a new individual or joint rate, sification, regulation, or practice shall go into effect

Page 547

TITLE 49, APPENDIX-TRANSPORTATION

§ 15

immediately at the expiration of such time period, or rate, fare, or charge found to be not justified, plus inshall remain in effect if it has already become effec- terest at a rate which is equal to the average yield (on
tive . Such rate, fare, charge, classification, regulation, the date such schedule is filed) of marketable securior practice may be set aside thereafter by the Commis- ties of the United States which have a duration of 90
sion if, upon complaint of an interested party, the days. With respect to any proposed decreased rate,
Commission finds it to be unlawful .
fare, or charge which is suspended, if the decrease or
(b) Pending a hearing pursuant to subdivision (a), any part thereof is ultimately found to be lawful, the
the schedule may be suspended, pursuant to subdivi- common carrier by railroad may refund any part of
sion (d), for 7 months beyond the time when it would the portion of such decreased rate, fare, or charge
otherwise go into effect, or for 10 months if the Com- found justified if such carrier makes such a refund
mission makes a report to the Congress pursuant to
available on an equal basis to all shippers who particisubdivision (a), except under the following conditions : pated in such rate, fare, or charge according to the rel(I) in the case of a rate increase, a rate may not be
ative amounts of traffic shipped at such rate, fare, or
suspended on the ground that it exceeds a just and charge.
reasonable level if the rate is within a limit specified
(f) In any hearing under this section, the burden of
in subdivision (c), except that such a rate change
proof is on the common carrier by railroad to show
may be suspended under any provision of section 2,
that the proposed changed rate, fare, charge, classifi3, or 4 of this Appendix or, following promulgation
cation, rule, regulation, or practice is just and reasonaof standards and procedures under section IM(d) of ble. The Commission shall specifically consider, in .any
this Appendix, if the carrier is found to have market such hearing, proof that such proposed changed rate,
dominance, within the meaning of section 1(5)(c)(i) fare, charge, classification, rule, regulation, or practice
of this Appendix, over the service to which such rate will have a significantly adverse effect (In violation of
increase applies ; or
section 2 or 3 of this Appendix) on the competitive
(ii) in the case of a rate decrease, a rate may not be • posture of shippers or consignees affected thereby .
suspended on the ground that it is below a just and The Commission shall give such hearing and decision
reasonable level if the rate is within a limit specified preference over all other matters relating to railroads
in subdivision (c), except that such a rate change pending before the Commission and shall make its demay be suspended under any provision of section 2,
cision at the earliest practicable time .
3, or 4 of this Appendix, or for the purposes of inves(9) Commission to investigate lawfulness of rates with retigating such rate change upon a complaint that
spect to market dominance of common carrier by railsuch rate change constitutes a competitive practice
road ; conclusiveness of findings; suspensions
which is unfair, destructive, predatory or otherwise
undermines competition which is necessary in the Following promulgation of standards under section
1(5)(d) of this Appendix, whenever a rate of a common
public interest .
(c) The limitations upon the Commission's power to carrier by railroad subject to this chapter is chalsuspend rate changes set forth in subdivisions (b)(i) lenged as being unreasonably high, the Commission
and (ii) apply only to rate changes which are not of shall, upon complaint or upon its own initiative and
general applicability to all or substantially all classes _ within 90 days after the commencement of a proceeding to investigate the lawfulness of such rate, deterof traffic and only if(i) the rate increase or decrease is filed prior to mine whether the carrier proposing such rate has
market dominance, within the meaning of section
July 1, 1980 ;
(ii) the common carrier by railroad notifies the
1(5Hc)(i) of this Appendix, over the service to which
Commission that it wishes to have the rate consid- such rate applies . If the Commission finds that such a
ered pursuant to this subdivision ; and
carrier does not have such market dominance, such
(iii) the aggregate of increases or decreases inn any
finding shall be determinative in all additional or
rate filed pursuant to clause (I) or (ii) of this subdivi
other proceedings under this Act concerning such rate
sion during any calendar year is not greater than 7
or service, unless (a) such finding is modified or set
per centum of the rate in effect on January 1 of that aside by the Commission, or (b) such finding is set
year .
aside by a court of competent jurisdiction . Nothing in
(d) The Commission may not suspend a rate under
this paragraph shall limit the Commission's power to
this paragraph unless it appears from specific facts suspend a rate pursuant to this section, except that-#f
shown by the verified complaint of any person that- the Commission has found that a carrier does not
(I) without suspension the proposed rate change have such market dominance over the service to-which
will cause substantial injury to the complainant or
a rate applies, the Commission may .not -suspend any
the party represented by such complainant ; and
increase in such rate on the ground that such rate as
(ii) it is likely that such complainant will prevail
increased exceeds a just or reasonable maximum for
on the merits .
such service, unless the Commission specifically modiThe burden of proof shall be upon the complainant to fies or sets aside its prior determination concerning
establish the matters set forth in clauses (i) and (ii) of
market dominance over the service to which such rate
this subdivision. Nothing in this paragraph shall be applies .
construed as establishing a presumption that any rate
(10) Shipper's choice of route to be observed
increase or decrease in excess of the limits set forth in
In all cases where at the time of delivery of property
clause (iii) of subdivision (c) is unlawful or should be
to any railroad corporation being a common carrier
suspended.
(e) If a hearing is initiated under this paragraph for transportation subject to the provisions of this
with respect to a proposed increased rate, fare, or chapter to any point of destination, between which
charge, and if the schedule is not suspended pending and the point of such delivery for shipment two or
more through routes and through rates shall have
such hearing and the decision thereon, the Commisbeen established as in this chapter provided to which
sion shall require the railroads involved to keep an account of all amounts received because of such increase through routes and through rates such carrier is a
from the date such rate, fare, or charge became effec- party, the person, firm, or corporation making such
tive until the Commission issues an order or until 7 shipment, subject to such reasonable exceptions and
months after such date, whichever first occurs, or, if regulations as the Interstate Commerce Commission
the hearings are extended pursuant to subdivision (a), shall from time to time prescribe, shall have the right
until an order issues or until 10 months elapse, which- to designate in writing by which of such through
ever first occurs. The account shall specify by whom routes such property shall be transported to destinaand on whose behalf the amounts are paid . In its final tion, and it shall thereupon be the duty of the initial
order, the Commission shall require the common carricarrier to route said property and issue a through bill
er by railroad to refund to the person on whose behalf of lading therefor as so directed, and to transport said
the amounts were paid that portion of such increased property over its own line or lines and deliver the

§ 15

TITLE 49, APPENDIX-TRANSPORTATION Page 548

same to a connecting line or lines according to such fense, on conviction, shall pay to the United States a
through route, and it shall be the duty of each of said
penalty of not more than $1,000 .
connecting carriers to receive said property and trans- (15) Allowance for service or facilities furnished by shipper
port it over the said line or lines and deliver the same
If the owner of property transported under this
to the next succeeding carrier or consignee according
to the routing instructions in said bill of lading: Pro- chapter directly or indirectly renders any service connected with such transportation, or furnishes any invided, however, That the shipper shall in all instances
have the right to determine, where competing lines of strumentality used therein, the charge and allowance
therefor shall be published in tariffs or schedules filed
railroad constitute portions of a through line or route,
over which of said competing lines so constituting a in the manner provided in this chapter and shall be no
more than is just and reasonable, and the Commission
portion of said through line or route his freight shall
may, after hearing on a complaint or on its own initiabe transported .
tive, determine what is a reasonable charge as the
(11) Liability of carriers where property is delivered contrary maximum to be paid by the carrier or carriers for the
to routing instructions
services so rendered or for the use of the instrumenWhenever property is diverted or delivered by one
tality so furnished, and fix the same by appropriate
carrier to another carrier contrary to routing instrucorder, which order shall have the same force and
tions in the bill of lading, unless such diversion or de- effect and be enforced in like manner as the orders
livery is in compliance with a lawful order, rule, or regabove provided for under this section.
ulation of the Commission, such carriers shall, in a '
suit or action in any court of competent jurisdiction, (16) Other powers of Commission not excluded
The foregoing enumeration of powers shall not exbe jointly and severally liable to the carrier thus deelude any power which the Commission would otherprived of its right to participate in the haul of the
property, for the total amount of the rate or charge it wise have in the making of an order under the proviwould have received had it participated in the haul of sions of this chapter .
the property . The carrier to which the property is (17) Standards and expeditious procedures for establishment
thus diverted shall not be liable in such suit or action
of rates based on seasonal, regional, or peak-period
if it can show, the burden of proof being upon it, that
demand for rail services; annual report
before carrying the property it had no notice, by bill
Within
1 year after February 5, 1978, the Commisof lading, waybill or otherwise, of the routing instrucestablish, by rule, standards and expeditious
tions . In any judgment which may be rendered the sron shall
on
establishment of railroad rates
plaintiff shall be allowed to recover against the dev seasonal,, tandard or peak-period
for
fendant a reasonable attorney's fee to be taxed in the based
rail
services.
Such
standards
and pprocedures
res
shall
be
case •
designed to (a) provide sufficient incentive to shippers
to reduce peak-period shipments, through reschedul(12) Direction of unrouted traffic by Commission
ing and advance planning; (b) generate additional revWith respect to traffic not routed by the shipper,
the Commission may, whenever the public interest enues for the railroads; and (c) improve (I) the utilization of the national supply of freight cars, (ii) the
and a fair distribution of the traffic require, direct the
route which such traffic shall take after it arrives at movement of goods by rail, (iii) levels of employment
the terminus of one carrier or at a junction point with by railroads, and (iv) the financial stability of markets
served by railroads . Following the establishment of
another carrier, and is to be there delivered to another
such standards and procedures, the Commission shall
carrier.
prepare and submit to the Congress annual reports on
(13) Disclosure or solicitation of information concerning the implementation of such rates, including recomshipm
unlawful; exceptions
ation
mendations with respect to the need, if any, for addiIt shall be unlawful for any common carrier subject
tional legislation to facilitate the establishment of
to the provisions of this chapter, or any officer, agent,
such demand-sensitive rates .
or employee of such common carrier, or for any other
(18) Expeditious procedures for separate rates for distinct
person or corporation lawfully authorized by such
rail services
common carrier to receive information therefrom,
In order to encourage competition, to promote inknowingly to disclose to or permit to be acquired by
any person or corporation other than the shipper or creased reinvestment by railroads, and to encourage
consignee, without the consent of such shipper or conand facilitate increased nonrailroad investment in the
signee, any information concerning the nature, kind, production of rail services, a carrier by railroad subquantity, destination, consignee, or routing of any ject to this chapter may, upon its own initiative or
upon the request of any shipper or receiver of freight,
property tendered or delivered to such common carrier
for interstate transportation, which information may file separate rates for distinct rail services . Within 1
be used to the detriment or prejudice of such shipper
year after February 5, 1976, the Commission shall establish, by rule, expeditious procedures for permitting
or consignee, or which may improperly disclose his
business transactions to a competitor ; and it shall also publication of separate rates for distinct rail services
be unlawful for any person or corporation to solicit or in order to (a) encourage the pricing of such services
in accordance with the carrier's cash-outlays for such
knowingly receive any such information which may be
so used: Provided, That nothing in this chapter shall services and the demand therefor, and (b) enable shippers and receivers to evaluate all transportation and
be construed to prevent the giving of such information
of response to any legal process issued under the au- related charges and alternatives .
thority of any State or Federal court, or to any officer
(19) Establishment of rate incentives for capital investment
or agent of the Government,of the United States' or
Notwithstanding any other provision of law, a
'
i_rt
the
exercise
a
Territory,
oF -hisofanySte
carrier by railroad subject to this chapter
other
authorized common
powers' or to any officer
may file with the Commission a notice of intention to
seeking suchwith
r cucsp for the rime
prosecution
; or Ir n
of
information
file a schedule stating a new rate, fare, charge, classifisuspected d c
c i-forpersons charged
cation, regulation, or practice whenever the implemenanother
matioation given by a common carrier
tation of the proposed schedule would require a total
agent,
for
the
purpose
o
f
ade
e ti s duly authorized
ju
a
the
capital investment of $1,000,000 or more, individually
h a ccounts in the ordinary course
of
g mutual traffic
or collectively, by such carrier, or by a shipper, receivbusiness o f s c
er, or agent thereof, or an interested third party . The
(14) Penalty for violation of preceding provisions
filing shall be accompanied by a sworn affidavit setting forth in detail the anticipated capital investment
Any person, corporation, or association violating any
of the provisions of paragraph 13 of this section shall upon which such filing is based . Any interested person
be deemed guilty of a misdemeanor, and for each ofmay request the Commission to investigate the sched-

Page 549

TITLE 49, APPENDIX-TRANSPORTATION

§ 15a

ule proposed to be filed, and upon such request the 1976, after notice and an opportunity for a hearing,
Commission shall hold a hearing with respect to such develop and promulgate (and thereafter revise and
schedule . Such hearing may be conducted without maintain) reasonable standards and procedures for the
answer or other formal pleading, but reasonable notice establishment of revenue levels adequate under
shall be provided to interested parties . Unless, prior to honest, economical, and efficient management to
the 180-day period following the filing of such notice cover total operating expenses, including depreciation
of intention, the Commission determines, after a hear- and obsolescence, plus a fair, reasonable, and economic
ing, that the proposed schedule, or any part thereof, profit or return (or both) on capital employed in the
would be unlawful, such carrier may file the schedule business . Such revenue levels should (a) provide a flow
at any time within 180 days thereafter to become ef- of net income plus depreciation adequate to support
fective after 30 days' notice . Such a schedule may not, prudent capital outlays, assure the repayment of a
for a period of 5 years after its effective date, be sus- reasonable level of debt, permit the raising of needed
pended or set aside as unlawful under section 1, 2, 3, or equity capital, and cover the effects of inflation and
4 of this Appendix, except that the Commission may (b) insure retention and attraction of capital in
at any time order such schedule to be revised to a level amounts adequate to provide a sound transportation
equaling the variable costs of providing the service, if system in the United States. The Commission shall
the rate stated therein is found to reduce the going make an adequate and continuing effort to assist such
concern value of the carrier.
carriers in attaining such revenue levels . No rate of a
(Feb . 4, 1887, ch. 104, pt . I, 115, 24 Stat. 384 ; June 29, common carrier by railroad shall be held up to a par1906, ch. 3591, § 4, 34 Stat. 589 ; June 18, 1910, ch . 309, ticular level to protect the traffic of any other carrier
§ 12, 36 Stat. 551 ; Feb . 28, 1920, ch . 91, § § 418-421, 41 or mode of transportation, unless the Commission
Stat. 484-488; Mar . 4, 1927, ch . 510, § 2, 44 Stat . 1447 ; finds that such rate reduces or would reduce the going
June 19, 1934, ch. 652, § 602(b), 48 Stat . 1102 ; Aug. 9, concern value of the carrier charging the rate .
1935, ch . 498, 11, 49 Stat. 543; Sept . 18, 1940, ch. 722, (5) Consideration of allegations of change in rate relationtitle I, § 10(a)-(d), 54 Stat. 911, 912; Feb . 5, 1976, Pub .
ships
ps between commodities, ports, etc., and effect on
L. 94-210, title II, §§ 201, 202(c)-(e), 203(a), 206, title
competitive position of shippers or consignees by proIII, 1302, 90 Stat. 34-37, 39, 41, 48; Oct. 19, 1976, Pub .
posed rate increase or decrease
L. 94-555, title II, § 220(m), 90 Stat. 2630; Nov. 8, 1978,
The Commission shall, in any proceeding which inPub. L. 95-607, title IV, § 401, 92 Stat . 3067.)
volves a proposed increase or decrease in railroad
915a. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17, rates, specifically consider allegations that such increase or decrease would change the rate relationships
1978, 92 Stat. 1466, 1470
between commodities, ports, points, regions, territoSection repealed subject to an exception related to ries, or other particular descriptions of traffic (whethtransportation of oil by pipeline . For disposition of er or not such relationships were previously considthis section in revised Title 49, Transportation, see ered or approved by the Commission) and allegations
Table at beginning of Title 49 . See, also, notes follow- that such increase or decrease would have a signifiing Table.
cantly adverse effect on the competitive position of
Prior to repeal, section read as follows :
shippers or consignees served by the railroad proposing such increase or decrease . If the Commission finds
015a Fair return for carriers
that such allegations as to change or effect are substantially supported on the record, it shall take such
(1) "Rates" defined
When used in this section, the term "rates" means steps as are necessary, either before or after such prorates, fares, and charges, and all classifications, regula- posed increase or decrease becomes effective and
either within or outside such proceeding, to investitions, and practices relating thereto .
gate the lawfulness of such change or effect .
(2) Ratemaking criteria ; nonapplicability to common carriers
by railroad subject to chapter

(6) Adjustment of interstate rates

In the exercise of its power to prescribe just and rea(a) Duty of Commission; petitions ; requirements and considsonable rates the Commission shall give due considererations
ation, among other factors, to the effect of rates on
The Commission shall by rule, on or before August
the movement of traffic by the carrier or carriers for 1, 1973, establish requirements for petitions for adjustwhich the rates are prescribed ; to the need, in the ment of interstate rates of common carriers subject to
public interest, of adequate and efficient railway this chapter based upon increases in expenses of such
transportation service at the lowest cost consistent carriers resulting from any increases in taxes under
with the furnishing of such service ; and to the need of the Railroad Retirement Tax Act, as amended 126
revenues sufficient to enable the carriers, under U .S.C. 3201 et seq .], occurring on or before January 1,
honest, economical, and efficient management to pro- 1975, or as a result of the enactment of the Railroad
vide such service. This paragraph shall not apply to Retirement Amendments of 1973 . Such requirements,
common carriers by railroad subject to this chapter .
established pursuant to section 553 of title 5 (with
time for comment limited so as to meet the required
(3) Competition between carriers of different modes of transdate for establishment and subject to future amendportation ; nonapplicability to common carriers by railment or revocation), shall be designed to facilitate fair
road subject to chapter
In a proceeding involving competition between carri- and expeditious action on any such petition as reers of different modes of transportation subject to this quired in subparagraph (b) of this paragraph by disAct, the Commission, in determining whether a rate is closing such information as the amount needed in rate
lower than a reasonable minimum rate, shall consider increases to offset such increases in expenses and the
the facts and circumstances attending the movement availability of means other than a rate increase by
of the traffic by the carrier or carriers to which the which the carrier might absorb or offset such inrate is applicable . Rates of a carrier shall not be held creases in expenses .
up to a particular level to protect the traffic of any (b) Interim rates; public notice requirement
other mode of transportation, giving due consideration
Notwithstanding any other provision of law, the
to the objectives of the national transportation policy Commission shall, within thirty days of the filing of a
declared in this Act . This paragraph shall not apply to verified petition in accordance with rules promulgated
common carriers by railroad subject to this chapter .
under subparagraph (a) of this paragraph, by any car(4) Revenue levels of common carriers by railroad ; standards
rier or group of carriers subject to this chapter, permit
and procedures for establishment
the establishment of increases in the general level of
With respect to common carriers by railroad, the the interstate rates of said carrier or carriers in an
Commission shall, within 24 months after February 5, amount approximating that needed to offset increases

015b

TITLE 49, - APPENDIX-TRANSPORTATION

Page 550

in expenses theretofore experienced or demonstrably
from the presentation thereof, the Commission shall,
certain to occur commencing on or before the effective
within 30 days of the filing of a verified petition by
date of the increased rates, as a result of any increases
such carrier or group of carriers relating to such intrain taxes under the Railroad Retirement Tax Act, as
state rates, act upon such petition by applying the
amended [26 U .S .C. 3201 et seq .], occurring on or
ratemaking criteria of subparagraph (c) of this parabefore January 1, 1975, or as a result of the enactment
graph. If the Commission grants, in whole or in part,
of the Railroad Retirement Amendments of 1973 .
such petition by any carrier or group of carriers, the
Such increases in rates may be made effective on not
increase authorized shall be considered as an interim
more than thirty nor less than ten days' notice to the
rate increase as provided in subparagraph (A) above
public, notwithstanding any outstanding orders of the
and shall be subject to final determination by the
Commission. To the extent necessary to effectuate State authority in accordance with the procedures
their establishment, rates so increased shall be represcribed for interim intrastate rate increases as prolieved from the provisions of section 4 of this Appenvided above, including the ordering of refunds by such
dix and may be published in tariff supplements of the
State authority.
kind ordinarily authorized in general inclrease proceedings.
(C) Action by Commission where partial denial by State authority results in discrimination
(c) Final rate determination ; hearings, burden of proof; genIf
a State authority denies in part such a petition
eral ratemaking criteria; refunds, interest rate
filed with it by such carrier or group- of carriers,
The Commission shall within sixty days from the
within 60 days from the presentation thereof, the
date of establishment of interim rates under subparaCommission shall, within 30 days of the filing of a
graph (b) of this paragraph commence hearings for
verified petition by such carrier or group of carriers
the purpose of making the final rate determination .
relating to the intrastate rates involved, act upon such
The Commission shall then proceed to make such
petition by applying the criteria of section 13(4) of
final rate determination with the carrier having the
this Appendix .
burden of proof. In making such determination, the
Commission may take into account all factors appropriate to ratemaking generally under this chapter and
shall determine such final rates under the standards
and limitations applicable to ratemaking generally
under this chapter . If the increases in rates finally authorized by the Commission are less than the increases in rates initially made effective, the carrier or
carriers shall, subject to such tariff provisions as the
Commission shall deem sufficient, make such refunds
(in the amount by which the initially increased rate
collected exceeds the finally authorized increased
rate) as may be ordered by the Commission, plus a reasonable rate of interest as determined by the Commission. Nothing contained in this paragraph shall limit
or otherwise affect the authority of the Commission
to authorize or permit to become effective any increase in rates other than the increases herein specifled .
(d) Adjustment of intrastate rates
(A) Duty of State authority ; petitions; interim rates; refunds,
interest
The State authority having jurisdiction over petitions for intrastate rate increases by any carrier or
group of carriers subject to this chapter shall, within
60 days of the filing of a verified petition for such increases based upon increases in expenses of such carrierr as a result of any increases in taxes under the Railroad Retirement Tax Act, as amended [26 U.S.C . 3201
et seq.], occurring on or before January 1, 1975 . or as a
result of the enactment of the Railroad Retirement
Amendments of 1973, act upon said petition . Such
State authority may grant an interim rate increase or
a final rate increase. If such State authority grants
any interim rate increases, it shall thereafter investigate and determine the reasonableness of such increases and modify them to the extent required by applicable law. To the extent that any such interim increases are reduced as a result of the action of a State
authority, the carrier or carriers shall make such refunds (in the amount by which the initially increased
rate collected exceeds the finally authorized increased
rate) as may be ordered by such State authority, plus
a reasonable rate of interest as determined by the
State authority.
(B) Action by Commission where complete denial or absence
of timely action by State authority ; grant of interim rates
by Commission ; final rate determination by State authority, refunds
If a State authority denies in toto such a petition
filed with it by such carrier or group of carriers seeking relief regarding such intrastate rate increases or
does not act finally on such petition within 60 days

(D) Stay of refund pending final order under section 13(4)
Nothing in subparagraph (A) or (B) shall be construed to abrogate the authority of the Commission
under section 13(4) of this Appendix and in the event
a carrier or group of carriers subject to a refund requirement under subparagraph (A) or (B) files a petition under section 13(3) of this Appendix, the refund
requirement shall be stayed pending final order of the
Commission under section 13(4) of this Appendix .
(E) Reasonable level for increased freight rates ; preservation
of market patterns
and relationships and port relationrelationp
ships
Any increased freight rates authorized shall not
exceed a reasonable level by types of traffic, commodsties, or commodity groups and shall preserve existing
market patterns and relationships and present port relationships by increase [increased] limitations within
and between the major districts to the extent possible
without authorizing unreasonable increases in any district .
(Feb . 4 . 1887, ch. 104, pt . I, 4 15a, as added Feb . 28,
1920, ch. 91, § 422, 41 Stat. 488, and amended June 16,
1933, ch. 91, title II, § 205 . 48 Stat. 220; Aug. 9, 1935,
ch . 498, 4 1, 49 Stat . 543; Sept. 18, 1940, ch. 722, title I,
4 10(e), 54 Stat. 912 ; Aug. 12, 1958, Pub. L. 85-625. 16 .
72 Stat. 572; July 10, 1973, Pub . .L . 93-69, title II, g 201,
87 Stat . 166 ; Feb . 5, 1976, Pub. L. 94-210, title II,
f4 203(b), 205, 90 Stat . 39, 41 .)
015b. Repealed. Pub. L . 95-473, § 4(b), Oct. 17, 1978,
92 Stat. 1466
Section, acts June
June 16, 1933, ch . 91, title II, 4 206, 48
St
220; Oct . 21,
93 6 h title V. #
20 56
Stat. 957 ; Dec
Oct. 30, 1969, Pub .
91 tit e, title
. § 11,
04 4 , 5 6
Dec . 30, 1969, 83 Stat . 730, related to discontinuance of
collection of excess income, liquidation of general railroad contingent fund, distribution of moneys, and
computation of tax liabilities. For disposition of this
section in revised Title 49, Transportation, see Table
at beginning of Title 49 . See, also, notes following
Table.
016 . Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17,
1978, 92 Stat. 1466, 1470
Section repealed subject to an exception related to
transportation of oil by pipeline . For disposition of
this section in revised Title 49, Transportation, see
Table at beginning of Title 49 . See, also, notes followIng Table .
Prior to repeal, section read as follows :

1

Page 551

TITLE 49, APPENDIX-TRANSPORTATION

§ 16. Orders of Commission and enforcement thereof

§ 16

services in excess of those applicable thereto under
the tariffs lawfully on file with the Commission .
(h) The provisions of this paragraph shall extend to
and embrace cases in which the cause of action accrued prior to June 7, 1924, as : well as cases in which
the cause of action accrues thereafter, except that actions- at law begun or complaints filed with the Commission against carriers subject to this chapter for the
recovery of overcharges where the cause of action accrued on or after March 1, 1920, shall not be deemed
to be barred under subdivision (c) of this paragraph if
such actions shall have been begun or complaints filed
prior to June 7, 1924, or within six months thereafter .
(i) The provisions of this paragraph (3) shall extend
to and embrace all transportation of property or passengers for or on behalf of the United States in conin nection with any action brought before the Commission or any court by or against carriers subject to this
chapter: Provided, however, That with respect to such
transportation of property or passengers for or on
behalf of the United States, the periods of limitation
herein provided shall be extended to include three
years from the date of (A) payment of charges for the
transportation involved, or (B) subsequent refund for
overpayment of such charges, or (C) deduction made
under section 66 of this Appendix, whichever is later .

(1) Award of damages
If, after hearing on a complaint made as provided in
section 13 of this Appendix, the Commission shall determine that any party complainant is entitled to an
award of damages under the provisions of this chapter
for a violation thereof, the Commission shall make an
order directing the carrier to pay to the complainant
the sum to which he is entitled on or before a day
named.
(2) Proceedings in courts to enforce orders ; costs; attorney's
fee
If a carrier does not comply with an order for the
payment of money within the time limit in such order,
the complainant, or any person for whose benefit such
order was made, may file in the district court of the
United States for the district in which he resides or
which is located the principal operating office of the
carrier, or through which the road of the carrier runs,
or in any State court of general jurisdiction having jurisdiction of the parties, a complaint setting forth
briefly the causes for which he claims damages, and
the order of the Commission in the premises . Such
suit in the district court of the United States shall
proceed in all respects like other civil suits for damages, exceptt that on the trial of such suit the findings
and order of the Commission shall be prima facie evi(4) Joinder of parties ; process ; judgment
dence of the facts therein stated, and except that the
plaintiff shall not be liable for costs in the district
In such suits all parties in whose favor the Commiscourt nor for costs at any subsequent stage of the pro- sion may have made an award for damages by a single
ceedings unless they accrue upon his appeal . If the
order may be joined as plaintiffs, and all of the carriplaintiff shall finally prevail he shall be allowed a reaers parties to such order awarding such damages may
sonable attorney's fee, to be taxed and collected as a
be joined as defendants, and such suit may be mainpart of the costs of the suit.
tained by such joint plaintiffs and against such joint
defendants in any district where any one of such joint
(3) Limitation of actions
plaintiffs could maintain such suit against any one of
(a) All actions at law by carriers subject to this chapsuch joint defendants; and service of process against
ter for recovery of their charges, or any part thereof,
any one of such defendants as may not be found in the
shall be begun within three years from the time the
district where the suit is brought may be made in any
cause of action accrues, and not after .
(b) All complaints against carriers subject to this
district where such defendant carrier has its principal
operating office . In case of such joint suit the recovchapter for the recovery of damages not based on
ery, if any, may be by judgment in favor of any one of
overcharges shall be filed with the Commission within
two years from the time the cause of action accrues,
such plaintiffs, against the defendant found to be
and not after, subject to subdivision (d) of this paraliable to such plaintiff .
graph .
(c) For recovery of overcharges action at law shall be (5) Service of order of Commission and notices of proceedbegun or complaint filed with the Commission against
ings
carriers subject to this chapter within three years
Every order of the Commission shall be forthwith
from the time the cause of action accrues, and not
served upon the designated agent of the carrier in the
after, subject to subdivision (d) of this paragraph,
city of Washington or in such other manner as may be
except that if claim for the overcharge has been preprovided by law. In proceedings before the Commissented in writing to the carrier within the three-year
sion involving the lawfulness of rates, fares, charges,
period of limitation said period shall be extended to
classifications, or practices, service of notice upon an
include six months from the time notice in writing is
attorney in fact of a carrier who has filed a tariff or
given by the carrier to the claimant of disallowance of
schedule in behalf of such carrier shall be deemed to
the claim, or any part or parts thereof, specified in the
be due and sufficient service upon the carrier, except
notice .
where the carrier has designated an agent in the city
(d) If on or before expiration of the two-year period
of Washington, District of Columbia, upon whom servof limitation in subdivision (b) of this paragraph or of
ice of notices and processes may be made, as provided
the three-year period of limitation in subdivision (c) of
in section 50 of this title : Provided, That in such prothis paragraph a carrier subject to this chapter begins
ceedings service of notice of the suspension of a tariff
action under subdivision (a) of this paragraph for re- or schedule upon an attorney in fact of a carrier who
covery of charges in respect of the same transportahas filed said tariff or schedule in behalf of such earrition service, or, without beginning action, collects er shall be deemed to be due and sufficient service
charges in respect of that service, said period of limitaupon the carrier, and service of notice of the suspention shall be extended to include ninety days from the
sion of a joint tariff or schedule upon a carrier which
time such action is begun or such charges are collected
has filed said joint tariff or schedule to which another
by the carrier.
carrier is a party shall be deemed to be due and suffishipment of
(e> The cause o action
on in respect of
cient notice upon the several carriers parties thereto.
deepe d shall, for the purposes of this of
b
Such service of notice may be made by mail to such atto accrue
delivery or tender
delivery
torney in fact or carrier at the address shown in the
thereof
hereof by the carrier, and not after .
tariff or schedule .
(f) A complaint for the enforcement of an order of
the Commission for the payment, of money shall be
(6) Suspension or modification of orders
filed in the district court or the State court within one
The Commission shall be authorized to suspend or
year from the date of the order, and not after .
modify its orders upon such notice and in such
(g) The term "overcharges" as used in this section
manner as it shall deem proper .
shall be deemed to mean charges for transportation

§ 16a

TITLE 49, APPENDIX-TRANSPORTATION

Page 552

(7) Compliance with orders
(Feb . 4, 1887, ch. 104, pt. I, § 16, 24 Stat. 384 ; Mar. 2,
1889, ch . 382, § 5, 25 Stat. 859 ; June 29, 1906, ch. 3591,
It shall be the duty of every common carrier, its
§ 5, 34 Stat. 590; June 18, 1910, ch . 309, § 13, 36 Stat.
agents and employees, to observe and comply with
554 ; Mar. 3, 1911, ch. 231, § 291, 36 Stat . 1167; Oct. 22,
such orders so long as the same shall remain in effect.
1913, ch . 32, 38 Stat. 219; Feb. 28, 1920, ch . 91,
(8) Failure of carrier or officer to obey orders ; penalty
.
41 S 1 491, .
8 J 7, 1924, .ta ch . 325, 43
Any carrier, any officer, representative, or agent of a Stat 633
633 ;
; Aug. 9, 1935, ch 498, 1, 49 Stat 543 ; Sept.
carrier, or any receiver, trustee, lessee, or agent of
18, 1940, ch . 722, title I, § 11(a), (b), 54 Stat. 912, 913 ;
either of them, who knowingly fails or neglects to
June 25, 1948, ch . 646, § 1, 62 Stat . 909 ; Aug. 2, 1949,
obey any order made under the provisions of sections
ch . 379, § 6, 63 Stat. 486; Aug. 26, 1958, Pub . L. 85-762,
3, 13, or 15 of this Appendix shall forfeit to the United
§ 1(1), (2), 72 Stat . 859.)
States the sum of $5,000 for each offense. Every distinct violation shall be a separate offense, and in case
§ 16a. Repealed. Sept. 18, 1940, ch. 722, title I, § 12, 54
of a continuing violation each day shall be deemed a
Sit, 913
separate offense .
(9) Suit for recovery of forfeiture
Section, act Feb. 4, 1887, ch. 104, pt. I, § 16a, as
added June 29, 1906, ch . 3591, § 6, 34 Stat. 592, related
The forfeiture provided for in this chapter shall be
to rehearings by Commission . See section 17 of this
payable into the Treasury of the United States, and
Appendix .
shall be recoverable in a civil suit in the name of the
United States, brought in the district where the carrier has its principal operating office, or in any district
§ 17 . Repealed. Pub. L 95-473, § 4(b), (c), Oct . 17,
through which the road of the carrier runs .
1978, 92 Stat . 1466, 1470; Pub . L 96-258, § 3(b),
June 3, 1980, 94 Stat. 427
(10) United States attorneys to prosecute for forfeitures ;
costs and expenses
Section repealed subject to an exception related to
It shall be the duty of the various United States attransportation
of oil by pipeline. Section 5 of Pub . L.
torneys, under the direction of the Attorney General
95-611, which amended par. (9)(f)(i) of this section
of the United States, to prosecute for the recovery of
subsequent to the repeal of this section by Pub. L.
forfeitures. The costs and expenses of such prosecu95-473, was repealed by Pub . L. 96-258. For disposition
tion shall be paid out of the appropriation for the exof this section in revised Title 49, Transportation, see
penses of the courts of the United States .
Table at beginning of Title 49 . See, also, notes follow(11) Employment of attorneys by Commission
ing Table .
The Commission may employ such attorneys as it
Prior to repeal, section read as follows :
finds necessary for proper legal aid and service of the
Commission or its members in the conduct of their
017 . Commission procedure; delegation of duties ; rehearings
work, or for proper representation of the public inter(1) Divisions of Commission; organization ; composition
ests in investigations made by it or cases or proceedings pending before it, whether at the Commission's
The Commission is authorized by its order to divide
the members thereof into as many divisions (each to
own instance or upon complaint, or to appear for or
represent the Commission in any case in court ; and
consist of not less than three members) as it may
deem necessary, which may be changed from time to
the expenses of such employment shall be paid out of
time . Such divisions shall be designated, respectively,
the appropriation for the Commission .
division one, division two, and so forth, or by a term
(12) Proceedings to enforce orders other than for payment of
descriptive of the principal subject, work, business, or
money
function assigned or referred to such divisions . The
If any carrier fails or neglects to obey any order of
Commission may designate one or more of its divisions
the Commission other than for the payment of
as appellate divisions. Any Commissioner may be asmoney, while the same is in effect, the Interstate
signed to such division or divisions as the Commission
Commerce Commission or any party injured thereby,
may direct, and the senior in service of the Commisor the United States, by its Attorney General, may
sioners constituting a division shall act as chairman
apply to any district court of the United States of
thereof unless otherwise directed by the Commission.
competent jurisdiction for the enforcement of such
When a vacancy occurs in any division or when a Comorder . If, after hearing, such court determines that
missioner because of absence, or other cause, is unable
the order was regularly made and duly served, and
to serve thereon, the Chairman of the Commission or
that the carrier is in disobedience of the same, such
any Commissioner designated by him for that purpose
court shall enforce obedience to such order by a writ
of injunction or other proper process, mandatory or may serve temporarily on such division until the Commission otherwise orders .
otherwise, to restrain such carrier, its officers, agents,
or representatives, from further disobedience of such
(2) Reference of matters to divisions, individual Commissionorder, or to enjoin upon it or them obedience to the
ers or boards
same.
The Commission may by order direct that any of its
work, business, or functions under any provision of
(13) Copies of schedules, tariffs, contracts, etc ., kept as public
law (except matters required to be referred to joint
records ; evidence
The copies of schedules and classifications and tarboards by section 305 of this Appendix, and except
functions vested in the Commission under this seciffs of rates, fares, and charges, and of all contracts,
tion), or any matter which shall have been or may be
agreements, and arrangements between common carriers filed with the Commission as herein provided, and
referred to it by Congress or by either branch thereof,
be assigned or referred to any division, to an individthe statistics, tables, and figures contained in the
ual Commissioner, or to a board to be composed of
annual or other reports of carriers made to the Commission as required under the provisions of this chapthree or more eligible employees of the Commission
ter shall be preserved as public records in the custody
(hereinafter in this section called a "board") to be desof the secretary of the Commission, and shall be re- ignated by such order, for action, thereon, and the
ceived as prima facie evidence of what they purport to
Commission may by order at any time amend, modify,
be for the purpose of investigations by the Commissupplement, or rescind any such assignment or refersion and in all judicial proceedings ; and copies of and ence . The following classes of employees shall be eligiextracts from any of said schedules, classifications,
ble for designation by the Commission to serve on
tariffs, contracts, agreements, arrangements, or resuch boards : examiners, directors or assistant directors
ports, made public records as aforesaid, certified by of bureaus, chiefs of sections, and attorneys . The asthe secretary, under the Commission's seal, shall be
signment or reference, to divisions, of work, business,
or functions relating to the lawfulness of rates, fares,
received in evidence with like effect as the originals .

i

Page 553

TITLE 49, APPENDIX-TRANSPORTATION

§ 17

or charges shall be made according to the character of Commission or a duly designated division thereof may
regulation to be exercised and not according to the authorize, no exceptions shall have been filed, such
kind or class of the carriers involved or to the form or recommended order shall become the order of the
mode of transportation in which such carriers may be Commission and become effective unless within such
engaged. When an individual Commissioner, or any period the order shall have been stayed or postponed
employee, is unable to act upon any matter so as- by the Commission or by a duly designated division
signed or referred because of absence or other cause, thereof . The Commission, or a duly designated divithe Chairman of the Commission may designate an- sion thereof, upon its own motion may, and where exother Commissioner or employee, as the case may be, ceptions are filed it shall, reconsider the matter either
to serve temporarily until the Commission otherwise upon the same record or after further hearing, and
orders .
such recommended order shall thereupon be stayed or
postponed pending final determination thereof. When
(3) Conduct of proceedings; seal; oaths ; quorum ; rules
The Commission shall conduct its proceedings under deemed by the Commission to be appropriate for the
any provision of law in such manner as will best con- efficient and orderly conduct of its business, it may
duce to the proper dispatch of business and to the authorize duly designated employee boards to perends of justice. The Commission shall have an official form, under this paragraph, functions of the same
seal, which shall be judicially noticed . Any member of character as those which may, be performed therethe Commission, the Secretary of the Commission, or under by duly designated divisions .
any member of a board may administer oaths and affirmations and any member of the Commission or the (6) Rehearing, reargument, or reconsideration of decisions,
orders, and requirements
Secretary of the Commission (or any member of a
board in connection with the performance of any
After a decision, order, or requirement shall have
work, business, or .functions referred under this sec- been made by the Commission, a division, and individtion to a board upon which he serves) may sign subpe- ual Commissioner, or a board, or after an order recomnas . A majority of the Commission, of a division, or of mended by an individual Commissioner . or a board
a board shall constitute a quorum for the transaction shall have become the order of the Commission as proof business . The Commission may, from time to time, vided in paragraph (5) of this section, any party theremake or amend such general rules or orders as may be to may at any time, subject to such limitations as may
requisite for the order and regulation of proceedings be established by the Commission as hereinafter aubefore it, or before any division, individual Commis- thorized, make application for rehearing, reargument,
sioner, or board, including forms of notices and the or reconsideration of the same, or of any matter deterservice thereof, which shall conform, as nearly as may mined therein . Such applications shalll be governed by
be, to those in use in the courts of the United States . such general rules as the Commission may establish .
Any party may appear before the Commission or any Any such application, if the decision, order, or requiredivision, individual Commissioner, or board and be ment was made by the Commission, shall be considheard in person or by attorney . Every vote and official ered and acted upon by the Commission . If the deciact of the Commission, or of any division, individual sion, order, or requirement was made by a division, an
Commissioner, or board, shall be entered of record, individual Commissioner, or a board, such application
and such record shall be made public upon the request shall be considered and acted upon by the Commission
of any party interested . All hearings before the Com- or referred to an appropriate appellate division for
mission, a division, individual Commissioner, or board consideration and action . Rehearing, reargument, or
shall be public upon the request of any party interest- reconsideration may be granted if sufficient reason
ed. No Commissioner or employee shall participate in therefor be made to appear ; but the Commission may,
any hearing or proceeding in which he shall have any from time to time, make or amend general rules or
pecuniary interest.
orders establishing limitations upon the right to apply
(4) Powers of divisions, boards, etc.; effect of orders, etc.
for rehearing, reargument, or reconsideration of a deA division, an individual Commissioner, or a board cision, order, or requirement of the Commission or of
shall have authority to hear and determine, order, cer- a division so as to confine such right to proceedings, or
tify, report, or otherwise act as to any work, business, classes of proceedings, involving issues of general
or functions assigned or referred thereto under the transportation importance . Notwithstanding the foreprovisions of this section, and with respect thereto going provisions of this paragraph, any application for
shall have all the jurisdiction and powers conferred by rehearing, reargument, or reconsideration of a matter
law upon the Commission, and be subject to the same assigned or referred to an individual Commissioner or
duties and obligations . The secretary and seal of the a board, under the provisions of paragraph (2) of this
Commission shall be the secretary and seal of each di . section, if such application shall have been filed
vision, individual Commissioner, or board. Except as within twenty days after the recommended order in
otherwise provided in this section, any order, decision, the proceeding shall have become the order of the
or requirement of a division, an individual Commis- Commission as provided in paragraph (5) of this secsioner, or a board, with respect to any matter so as- tion, and if such matter shall not have been reconsidsigned or referred, shall have the same force and ered or reheard as provided in said paragraph, shall be
effect, and may be made and evidenced in the same referred to an appropriate appellate division of the
manner as if made or taken by the Commission .
Commission and such division shall reconsider the
(5) Findings, etc ., of Commissioner or board ; accompanying matter either upon the same record or after a further
statement and recommended order; copies to parties ; ex- hearing .
ceptions ; recommended order as Commission's order ; del- (7) Reversal or modification after rehearing, etc .
egation of duties to employee boards
Any finding, report, or requirement of an individual If after rehearing, reargument, or reconsideration of
Commissioner or board, with respect to any matter so a decision, order, or requirement of a division, an indiassigned or referred involving the taking of testimony vidual Commissioner, or board it shall appear that the
at a public hearing, shall be accompanied by a state- original decision, order, or requirement is in any rement in writing of the reasons therefor, together with spect unjust or unwarranted, the Commission or apa recommended order, which shall be filed with the pellate division may reverse, change, or modify the
Commission. Copies thereof shall be served upon in- same accordingly . Any decision, order, or requirement
terested parties (including, in proceedings under chap- made after rehearing, reargument, or reconsideration,
ter 8 of this Appendix, persons specified in section reversing, changing, or modifying the original determi305(e) of this Appendix), who may file exceptions nation shall be subject to the same provisions with rethereto, but if within twenty days after service upon spect to rehearing, reargument, or reconsideration as
such persons, or within such further period as the an original order .

§ 17

TITLE 49, APPENDIX-TRANSPORTATION

Page 554

(8) Stay of decisions, etc ., not effective at time of application
termination of such appeal . Such a review shall be
for rehearing, etc .
conducted in accordance with section 557 of title 5.
and such rules (limiting and defining the issues and
Where application for rehearing, reargument, or reconsideration of a decision, order, or requirement of a pleadings upon review) as the Commission may adopt
in conformance with section 557(b) of such title 5 . The
division, an individual Commissioner, or board is made
Commission may, in its discretion and on such terms
in accordance with the provisions of this section and
and conditions as it may prescribe, authorize duly desthe rules and regulations of the Commission, and the
decision, order, or requirement has not yet become ef- ignated employee boards to perform functions under
this paragraph of the same character as those which
fective, the decision, order, or requirement shall be
may be performed by a duly designated division of the
stayed or postponed pending disposition of the matter
Commission (other than the decision of any appeal
by the Commission or appellate division ; but otherwise
under this paragraph which may be further appealed
the making of such an application shall not excuse
to the Commission).
any person from complying with or obeying the decision, order, or requirement, or operate to stay or post(d) Any decision, order, or requirement of the Compone the enforcement thereof, without the special
mission, or of a duly designated division thereof, shall
become effective 30 days after it is served on the parorder of the Commission,
ties thereto, unless the Commission provides for such
(9) Administrative hearing and review procedures for decidecision, order, or requirement, or any applicable rule,
sions, orders, reports, etc .;
relief; applicability
to become effective at an earlier date . Any interested
(a) Whenever the term "hearing" is used in this
party to a decision, order or requirement of a duly deschapter, such term shall be construed to include an
ignated division of the Commission may petition the
opportunity for the submission of all evidence in writCommission for rehearing, reargument,
rules a
or other reten form, followed by an opportunity for briefs, writconsideration, subjectt to such rules and limitations
limittions as
statements, or conferences of the parties, such f
the Commission
conferences to be chaired by a division, an individual
in g decision,
of
orderestablish, ar requirement
impn e; or if a
Commissioner, an administrative law judge, an emmatter
ge
general transportation ,
s
n
ployee board, or any other designated employee of the
finds that clear and convincing new evidence has been
Commission
presented or that changed circumstances exist which
(b) With respect to any matter involving a common
materially affect such decision, order, or rerecarrier by railroad subject to this chapter, whenever
sio
quirement,
, order, the Commission may reconsider such
the Commission assigns the initial disposition to any
ion, or requirement, and it may, in its dicrediscreof such matter before the Commission to an administrative law judge, individual Commissioner, employee lion, stay the effective date of such decision, order, or
requirement . If the Commission reconsiders a decision,
board, or division or panel of the Commission, such
order, or requirement, it must complete the process
judge, Commissioner, board, division, or panel shallth e issue its
t
not
than 120 for after
(1) complete all evidentiary proceedings with rethe date on which
wich it grants
rants
the
te
application
for
to such matter within 180 days after its assignsideration
and
(e) The Commission may, in its discretion, extend
(ii) with respect to any matter so assigned which
any time period set forth in this paragraph for a
involves written submissions or the taking of testimony at a public hearing, submit in writing to the period of not more than 90 days, if a majority of the
Commissioners, by public vote, agree to such extenCommission, within 120 days after the completion of
all evidentiary proceedings, an initial decision, sion . The Commission shall submit an annual report
in writing to each House of Congress setting forth
report, or order containingeach extension granted pursuant to this subdivision
(A) specific findings of fact ;
(classified by the type of proceeding involved), and
(B) specific and separate conclusions of law ;
stating the reasons for each such extension and the
(C) a recommended order; and
duration thereof.
(D) any justification in support of such findings
(f) In extraordinary situations in which an extension
of fact, conclusions of law, and order .
granted pursuant to subdivision (e) is not sufficient to
The Commission, or a duly designated division thereof, may, in its discretion, void any requirement for an
allow for completion of necessary proceedings, the
Commission may, in its discretion, grant a further exinitial decision, report, or order, and, in appropriate
tension ifcases, may direct that any matter shall be considered
forthwith by the Commission or such division, if it
(I) a majority of the Commissioners, by public
concludes that the matter involves a question of
vote, agree to such further extension ; and
agency policy, a new or novel issue of law, or an issue
(ii) not less than 15 days prior to expiration of the
of general transportation importance, or if the due
extension granted pursuant to subdivision (e), the
and timely execution of its functions so requires .
Commission reports in writing to the Congress that
Whenever an initial decision, report, or order is subsuch further extension has been granted, together
mitted, copies thereof shall be served upon interested
withparties. Any such party may file an appeal with the
(A) a full explanation of the reasons for such
Commission, with respect to such initial decision or
further extension;
report. If no such appeal is filed within 20 days after
(B) the anticipated duration of such further exsuch service, or within such further period (not to
tension;
exceed 20 days) as the Commission, or a duly designat(C) the issues involved in the matter before the
ed division thereof, may authorize, the order set forth
Commission; and
in such initial decision or report shall become the
(D) the names of personnel of the Commission
order of the Commission and shall become effective
working on such matter .
unless, within such period, the order shall have been
(g) The Commission may, at any time upon its own
stayed or postponed by the Commission pursuant to
initiative, on grounds of material error, new evidence,
subdivision (d) or (e) .
or substantially changed circumstances(c) The Commission, or a duly designated division
(i) reopen any proceeding;
thereof, may, upon its own initiative, and shall, in any
(ii) grant rehearing, reargument, or reconsidercase in which an appeal is filed under subdivision (b),
ation with respect to any decision, order, or requirereview the matter upon the same record or upon the
ment ; and
basis of a further hearing . Any such appeal shall be
(iii) reverse, modify, or change any decision, order,
considered and acted upon by the Commission, or a
or requirement.
duly designated division thereof, within 180 days after
the date on which such appeal is filed. Any such deciThe Commission may establish rules allowing interested parties to petition for leave to request reopening
sion, report, or order shall be stayed pending the de-

Page 555

TITLE 49, APPENDIX-TRANSPORTATION

818

and reconsideration based upon material error, new practice before it, and is authorized to impose a reaevidence, or substantially changed circumstances .
sonable fee for such admission, and such fees shall be
(h) Notwithstanding any other provision of this Act, covered into the Treasury of the United States as misany decision, order, or requirement of the Commis- cellaneous receipts .
sion, or of a duly designated division thereof, shall be
final on the date on which It is served . A civil action to (14) Formal investigative proceedings ; conclusion or terminaenforce, enjoin, suspend, or set aside such a decision,
tion requirements
order, or requirement, in whole . or in part, may be
(a) Any formal investigative proceeding with respect
brought after such date in a ourt of the United to a common carrier by railroad which is Instituted by
States pursuant to the provisions of law which are ap- the Commission after February 5, 1976, shall be conplicable
to suits
enforce, enjoin, suspend, or set cluded by the Commission with administrative finality
aside orders
of thetoCommission.
(i) Notwithstanding the provisions of paragraphs (5), within 3 years after the date on which such proceed(6), (7), and (8), of this section, the provisions of this ing is instituted . Any such proceeding which is not so
concluded by such date shall automatically be disshall govern the disposition of, and shall missed
apply only to, any matter before the - Commission
apply
(b) Within 1 year after February 5, 1976, the Comwhich involves a common carrier by railroad subject to
this chapter, except that the provisions of other sec- mission shall conclude or terminate, with administrations of this chapter pertaining to deadlines in Com- tive finality, any formal investigative proceeding with
mission proceedings shall govern to the extent that respect to a common carrier by railroad which was inthey are inconsistent with the provisions pertaining to stituted by the Commission on its own initiative and
deadlines contained in this paragraph.
which has been pending before the Commission for a
(j) Reports in writing and other written statement period of 3 or more years following the date of the
(including, but not limited to, any report, order, deci- order which, instituted such proceeding .
sion and order, vote, notice, letter, policy statement,
rule, or regulation) of any official action of the Com- (15) Access to information by Congressional committees ; pro.
mission (whether such action is taken by the Commiscedures; limitations ; definition
sion, a division thereof, any other group of CommisWhenever the Committee on Interstate and Foreign
sioners, a single Commissioner, an employee board, an Commerce of the House of Representatives or the
administrative law judge, or any other individual or Committee on Commerce, Science, and Transportation
group of individuals who are authorized to take any of the Senate makes a written request for documents
official action on behalf of the Commission) shall indi- which are in the possession or under the control of the
cate (I) the official designation of the individual or Commission and which relate to any matter involving
group taking such action (it) the name of each individa common carrier by railroad subject to this chapter,
ual taking, or participating in taking, such action, and the Commission shall, within-10 days after the date of
(iii) the vote or position of each such participating in- receipt of such request, submit such documents
.(or
dividual . If any individual who-is officially designated
as a member of a group which-takest
such action copies thereof) to such _committee, or submit a report
does not participate
action
c
such action
such
state- in writing to . such committee stating the reason why
di nt part
shall indicate that
individual such documents have not been so submitted, and the
did not participate . Each indivIu
viduaLwho participates
participates anticipated date on which they will be submitted . If
in taking any such action shall have the right to ex- the Commission transfers any document in its possespress his individual views as-part of the written state- sion or under its control to any other agency or to any
ment of such action. The written statement of any person, it shall . condition such transfer on the guaransuch action shall be made available to the public in ac- teed return by the transferee of such document to the
Commission for purposes of complying with the precordance with Federal law .
. This paragraph shall not apply to
(10) Judicial relief from decisions, etc ., upon denial or other documents
ceding sentence
which have been obtained by the Commisdisposition of application for rehearing, etc .
sion from persons subject to regulation by the ComWhen an application for rehearing, reargument, or mission, and which contain trade secrets or commerreconsideration of any decision, order, or requirement cial or financial information of a privileged or confiof a division, an individual Commissioner, or a board dential nature . This paragraph shall not be deemed to
with respect to any matter assigned or referred to him restrict any other authority of either House of Conor it shall have been made and shall have been denied, gress, or any committee or subcommittee, thereof, to
or after rehearing, reargument, or reconsideration obtain documents . For purposes of this paragraph, the
otherwise disposed of, by the=Commission or an appel- term "document" means any book, paper, correspondlate division, a suit to'-enforce ; .enjoin, suspend, or set ence, memorandum, or other record, or any copy
aside such decision, order ; .or .requirement, in whole or thereof .
in part, may be brought in a court . of the United
States under those provisions of law . applicable in the (Feb . 4, 1887, ch . 104, pt . I, § 17, 24 Stat . 385; Mar. 2,
case of suits. .to enforce, enjoin, suspend, or set aside 1889, ch . 382, § 6, 25 Stat . 861 ; Aug. 9, 1917, ch . 50, § 2,
40 Stat. 270 ; Feb . 28, 1920, ch. 91, §1430-432, 41 Stat.
orders of the Commission, but not otherwise .
492, 493 ; Feb. 28, 1933, ch . 136, 47 Stat. 1368; Aug. 9,
matters
to
examiners
(11) Reference of administrative
. 498, 11, 49 Stat. 543 ; Sept . 18, 1940, ch. 722,
Any matter arising in the administration of chapter 1935,
75 t ch§
Feb . ,
6114, 1961, Pub. L. 87-247,
8 of this Appendix as to which a hearing is to be held
301517 ; Fe 5 1976, Pub. L. 94-210, title III,
may be referred to an examiner of the Commission, 75
for action thereon, subject to the conditions and limi- §1301, 303, 90 Stat . 47, 48, 50; Oct. 19, 1976, Pub .. L4,.
tations provided in this section in the case of reference 94-555, title II, § 220(j), 90 Stat . 2630 ; S . Res . 4,. Feb
3090.)
of work, business or functions, as to which a hearing is 1977 ; Nov. 8, 1978, Pub. L. 95-611, 15, 92 Stat
to be held, to an individual Commissioner or board .
$18. Repealed . Pub 1 95-473, § 4(b), (c), Oct_ 17,
(12) Intervention of representatives of employees
. ,1470
Representatives of employees of a carrier, duly designated as such, may intervene and be heard in any
Section repealed subject to an exception related to
proceeding arising under this chapter and chapters 8 transportation of oil by pipeline . For disposition of
and 12 of this Appendix affecting such employees.
this section in revised Title 49, Transportation, see
Table at beginning of Title 49. See, also, notes follow(13) Admission to practice before Commission
The Commission is authorized to promulgate reason- ing Table .
Prior to repeal, section read as follows :
able rules and regulations relating to admission to

919

TITLE 49, APPENDIX-TRANSPORTATION

918. Employees; appointment and compensation ; witness
fees; expenses
(1) Commissioners' salaries; secretary and employees ; compensation ; witness fees
Each commissioner shall receive an annual salary,
payable in the same manner as the judges of the
courts of the United States . The Commission shall appoint a secretary . The Commission shall have authority to employ and fix the compensation of such other
employees as it may find necessary to the proper performance of its duties . Until otherwise p rovided . b y
law, the Commission may hire suitable offices for its
use, and shall have authority to procure all necessary
office supplies . Witnesses summoned before the Commission shall be paid the same fees and mileage that
are paid witnesses in the courts of the United States .
(2) Expenses of Commission
All of the expenses of the Commission, including all
necessary expenses for transportation incurred by the
commissioners, or by their employees under their
orders, in making any investigation, or upon official
business in any other places than in the city of Washington, shall be allowed and paid on the presentation
of itemized vouchers therefor approved by the chairman of the Commission.
(Feb. 4, 1887, ch . 104, pt I, ; ; 17, 18, 24, 24 Stat. 388,
387 ; Mar . 2, 1889, ch . 382, § 7, 25 Stat. 861 ; June 29,
1906, ch. 3591, 4 8, 34 Stat . 595 ; Aug . 9, 1917, ch. 50,
l19 1-3, 40 Stat. 270; Feb . 28, 1920, ch. 91, H 433, 440, 41
Stat . 493, 497.)

Page 556

value of the property owned or used by any such electric railway subject to the provisions of this chapter
whenever in its judgment such action is desirable in
the public interest . To enable the Commission to make
such investigation and report, it is authorized to
employ such experts and other assistants as may be
necessary . The Commission may appoint examiners
who shall have power to administer oaths, examine
witnesses, and take testimony. The Commission shall,
subject to the exception hereinbefore provided for in
the case of electric railways, make an inventory which
shall list the property of every common carrier subject
to the provisions of this chapter in detail, and show
the value thereof as hereinafter provided, and shall
classify the physical property, as nearly as practicable,
in conformity with the classification of expenditures
for road and equipment, as prescribed by the Interstate Commerce Commission .

(b) Cost of property ; elements considered in determination;
gifts , grants, etc .
First. In such investigation said Commission shall ascertain and report in detail as to each piece of property, other than land owned or used by said . common
carrier for its purposes as a common carrier, the original cost to date, the cost of reproduction new, the cost
of reproduction less depreciation, and an analysis of
the methods by which these several costs are obtained,
and the reason for their differences, if any . The Commission shall in like manner ascertain and report separately other values, and elements of value, if any, of
the property of such common carrier, and an analysis
of the methods of valuation employed, . and of the rea919 . Repealed . Pub. L. 95-473, § 4(b), (c), Oct. 17,
sons for any differences between any such value and
.
1466,
1470
92 Stat
each of the foregoing cost values .
Second. Such investigation and report shall state in
Section repealed subject to an exception related to
detail and separately from improvements the original
transportation of oil by pipeline . For disposition of
cost of all lands, rights of way, and terminals owned or
this section in revised Title 49, Transportation, see
Table at beginning of Title 49 . See, also, notes follow- used for the purpose of a common carrier, and ascertained as of the time of dedication to public use, and
ing Table.
the present value of the same .
Prior to repeal, section read as follows:
Third . Such investigation and report shall show separately the property held for purposes other than
919 . Office and sessions
those of a common carrier, and the original cost and
The principal office of the Commission shall be in
present value of the same, together with an analysis of
the city of Washington, where its general sessions
the methods of valuation employed .
shall be held; but whenever the convenience of the
public or of the parties may be promoted or delay or Fourth . In ascertaining the original cost to date of
the property of such common carrier the Commission,
expense prevented thereby, the Commission may hold
in addition to such other elements as it may deem necspecial sessions in any part of the United States . It
essary, shall investigate and report upon the history
may, by one or more of the commissioners, prosecute
and organization of the present and of any previous
any inquiry necessary to its duties, in any part of the
corporation operating such property; upon any inUnited States, into any matter or question of fact percreases or decreases of stocks, bonds, or other securitaining to the business of any common carrier subject
ties, in any reorganization; upon moneys received by
to the provisions of this chapter .
. 9, any such corporation by reason of any issues of stocks,
(Feb. 4, 1887, ch . 104, pt. I, 19, 24 Stat. 386 ; Aug
bonds, or other securities; upon the syndicating, bank1935, ch. 498, 4 1, 49 Stat . 543 .)
ing, and other financial arrangements under which
such issues were made and the expense thereof ; and
919x. Repealed . Pub. L . 95-473, § 4(b), (c), Oct. 17,
upon the net and gross earnings of such corporations ;
1978,, 92 Stet. 1466, 1470
and shall also ascertain and report in such detail as
may be determined by the Commission upon the exSection repealed subject to an exception
related
to
. For disposition of penditure of all moneys and the purposes for which
transportation of oil by pipeline
the same were expended.
this section in revised Title 49, Transportation, see
Fifth. The Commission shall ascertain and report
Table at beginning of Title 49 . See, also, notes followthe
amount and value of any aid, gift, grant of right of
Ing Table .
way, or donation, made to any such common carrier,
Prior to repeal, section read as follows :
or to any previous corporation operating such property, by the Government of the United States or by any
919a Valuation of property of carriers
State, county, or municipal government, or by individ(a) Physical valuation of property of carriers ; classification
uals, associations, or corporations; and it shall also asand inventory
certain and report the grants of land to any such
The Commission shall, as hereinafter provided, incommon carrier, or any previous corporation operating
vestigate, ascertain, and report the value of all the
such property, by the Government of the United
property owned or used by every common carrier subStates, or by any State, county, or municipal government, and the amount of money derived from the sale
ject to the provisions of this chapter, except any
street, suburban, or interurban electric railway which
of any portion of such grants and the value of the
is not operated as a part of a general steam railroad
unsold portion thereof at the time acquired and at the
present time, also, the amount and value of any consystem of transportation ; but the Commission may in
cession and allowance made by such common carrier
its discretion investigate, ascertain, and report the

Page 557

TITLE 49, APPENDIX-TRANSPORTATION

to the Government of the United States, or to any
State, county, or municipal government in consideration of such aid, gift, grant, or donation,
(c) Investigation ; procedure and forms

Except as herein otherwise provided, the Commassion shall have power to prescribe the method of procedure to be followed in the conduct of the investigation, be
thesubmitted,
form in which
theclassification
results of theofvaluation
shall
and the
the elements that constitute the ascertained value, and such
investigation shall show the value of the property of
every common carrier as a whole and separately the
value of its property in each of the several States and
Territories and the District of Columbia, classified and
in detail as herein required.

919a

by registered mail or by certified mail to the said carrier, the Attorney General of the United States; the
governor of any State in which the property so valued
is located, and to such additional parties as the Commission may prescribe, stating the valuation placed
of property
t of said carrier,
nd shall allow
al ith thirty sdays
and
days s which to file a
sef of
the same with the Commission . If no protest iis filed
within thirty days, said valuation shall become final as
of the date thereof.
(i) Protests; hearings ; changes in valuations ; final valuation

and classification

notice of protest is filed the Commission shall fix
a time for hearing the same, and shall proceed as
promptly as may be to hear and consider any matter
relative and material thereto which may be presented
(d) Time for beginning investigation; reports to Congress
Such investigation shall be commenced within sixty in support of any such protest so filed as aforesaid . If
days after March 1, 1913, and shall be prosecuted with after hearing any protest of such tentative valuation
diligence and thoroughness, and the result thereof re- under the provisions of this chapter the Commission
ported to Congress at the beginning of each regular shall be of the opinion that its valuation should not
become final, it shall make such changes as may be
session until completed .
necessary, and shall issue an order making such cor(e) Aid of carrier required; rules and regulations ; inspection
rected tentative valuation final as of the date thereof.
of records
All final valuations by the Commission and the classiEvery common carrier subject to the provisions of
fication thereof shall be published and shall be prima
this chapter shall furnish to the Commission or its facie evidence of the value of the property in all proagents from time to time and as the Commission may
ceedings under this chapter as of the date of the
require maps, profiles, contracts, reports of engineers,
fixing thereof, and in all judicial proceedings for the
and any other documents, records, and papers, or enforcement of this chapter, and in all judicial procopies of any or all of the same, in aid of such investi- ceedings brought to enjoin, set aside, annul, or susgation and determination of the value of the property
pend, in whole or in part, any order of the Interstate
of said common carrier, and shall grant to all agents of
Commerce Commission .
the Commission free access to Its right-of-way, its
(j) Effect of evidence as to values; modification of orders
property, and its accounts, records, and memoranda
whenever and wherever requested by any such duly
If upon the trial of any action involving a final value
authorized agent, and every common carrier is directfixed by the Commission, evidence shall be introduced
ed and required to cooperate with and aid the Comregarding such value which is found by the court to be
mission in the work of the valuation of Its property in different from that offered upon the hearing before
such further particulars and to such extent as the
the Commission, or additional thereto and substantialCommission may require and direct, and all rules and ly affecting said value, the court, before proceeding to
regulations made by the Commission for the purpose
render judgment shall transmit a copy of such eviof administering the provisions of this section and secdence to the Commission, and shall stay further protion 20 of this Appendix shall have the full force and ceedings in said action for such time as the court shall
effect of law . Unless otherwise ordered by the Com- determine from the date of such transmission . Upon
mission, with the reasons therefor, the records and the receipt of such evidence the Commission shall condata of the Commission shall be open to the inspec- sider the same and may fix a final value different
tion and examination of the public .
from the one fixed in the first instance, and may alter,
modify, amend or rescind any order which it has made
(f) Valuation of extensions and improvements ; revisions; repoi
involving said final value, and shall report its action
to said court within the time fixed by the
Upon completion of the original valuations herein thereon
the
alter, modify,
Court.
provided for, the Commission shall thereafter keep
o
,
modified,
or damended
er comits
order,
such
altered,
itself informed of all new construction, extensions, imorder
plaained
shall
of
take
the
place
th
a
e
original
ord
provements, retirements, or other changes in the conpl
and judgme shall be rendered thereon as
dition, quantity, use, and classification of the property
though made by the Commission in the first instance.
of
common
carriers
whichoforiginal
valuations
order shall not be rescinded or changed
haveallbeen
made,
and of as
thetocost
all additions
and Ifbythetheoriginal
Commission, judgment shall be rendered upon
betterments thereto and of all changes in the investsuch original order.
ment therein, and may keep itself informed of current
changes in costs and values of railroad properties, in (k) Receivers and trustees of carriers affected ; noncompliorder that it may have available at all times the Inforance with law ; penalty
mation deemed by it to be necessary to enable It to
The provisions of this section shall apply to receivrevise and correct its previous inventories, classifieaers of carriers and operating trustees. In case of failtions, and values of the properties ; and when deemed ure or refusal on the part of any carrier, receiver, or
necessary, may revise, correct, and supplement any of
trustee to comply with all the requirements of this
its inventories and valuations .
section and in the manner prescribed by the Commission such carrier, receiver, or trustee shall forfeit to
(g) Reports and information to be furnished by carriers
the United States the sum of $500 for each such ofTo enable the Commission to carry out the provifense and for each and every day of the continuance
sions of paragraph (f) of this section, every common
carrier subject to the provisions of this chapter shall of such offense, such forfeitures to be recoverable in
the same manner as other forfeitures provided for in
make such reports and furnish such information as
section 16 of this Appendix .
the Commission may require .
(h) Notice of completion of tentative valuation ; protests; fi-

If

(1) Mandamus to compel compliance with law

of report
The district courts of the United States shall have
Whenever the Commission shall have completed the jurisdiction, upon the application of the Attorney
tentative valuation of the property of any common
General of the United States at the request of the
Commission, alleging a failure to comply with or a viocarrier, as herein directed, and before such valuation
lation of any of the provisions of this section by any
shall become final, the Commission shall give notice
nality

§ 20

TITLE 49, APPENDIX-TRANSPORTATION

common carrier, to issue a writ or writs of mandamus
commanding such common carrier to comply with the
provisions of this section.
(Feb. 4, 1887, ch. 104, pt. I, § 19a, as added Mar. 1,
1913, ch . 92, 37 Stat . 701, and amended Feb. 28, 1920,
ch. 91, § 433, 41 Stat. 493 ; June 7, 1922, ch. 210, § 11, 2,
42 Stat . 624 ; June 16, 1933, ch . 91, title II, §§ 207, 208,
48 Stat. 221; Aug . 9, 1935, ch . 498, § 1, 49 Stat . 543 ;
June 11, 1960, Pub. L . 86-507, § 1(38), 74 Stat. 202 .)

Page 558

ties, including maintenance-of-way, maintenance of
equipment (locomotive and car), transportation
(train, yard and station, and accessorial services),
and general and administrative expenses; and
(iii) indirect cost accounts for determining fixed,
common, joint, and constant costs, including the cost
of capital, and the method for the assignment of
such costs to various functions, services, or activities.
(c) The accounting system established pursuant to
this paragraph shall be in accordance with generally
accepted accounting principles uniformly applied to
§ 20. Repealed . Pub. L. 95-473, § 4(b), (c), Oct. 17,
all common carriers by railroad subject to this chap1978, 92 Stat. 1466, 1470
ter, and all reports shall include any disclosure considSection repealed subject to an exception related to ered appropriate under generally accepted accounting
transportation of oil by pipeline . For disposition of principles or the requirements of the Commission or
this section in revised Title 49, Transportation, see of the Securities and Exchange Commission . The
Table at beginning of Title 49 . See, also, notes follow- Commission shall, notwithstanding any other proviing Table.
sion of this section, to the extent possible, devise the
Prior to repeal, section read as follows :
system of accounts to be cost effective, nonduplicative,
and compatible with the present and desired manage§ 20. Reports, records, and accounts of carriers ; mandamus ; rial and responsibility accounting requirements of the
liability of initial carrier for loss, etc .
carriers, and to give due consideration to appropriate
economic principles. The Commission should attempt,
(1) Reports from carriers and lessors
The Commission is authorized to require annual, pe- to the extent possible, to require that such data be reriodical, or special reports from carriers, lessors, and ported or otherwise disclosed only for essential regulaassociations (as defined in this section), to prescribe tory purposes, including rate change requests, abanthe manner and form in which such reports shall be donment of facilities requests, responsibility for peaks
made, and to require from such carriers, lessors, and in demand, cost of service, and issuance of . securities.
(d) In order that the accounting system established
associations specific and full, true, and correct answers
pursuant to this paragraph continue to conform to
to all questions upon which the Commission may
deem information to be necessary, classifying such generally accepted accounting principles, compatible
carriers, lessors, and associations as it may deem with the managerial responsibility accounting requireproper for any of these purposes . Such annual reports ments of carriers, and in compliance With other objectives set forth in this section, the Commission shall peshall give an account- of the affairs of the carrier,
lessor, or association in such form and detail as may be riodically, but not less than once every 5 years, review
such accounting system and revise it as necessary .
prescribed by the Commission .
(e) There are authorized to be appropriated to the
(2) Period covered by and time for making reports; oaths for
Commission for purposes of carrying out the provireports
sions of this paragraph such sums as may be necesSaid annual reports shall contain all the required in- sary, not to exceed $1,000,000, to be available forformation for the period of twelve months ending on
(i) procuring temporary and intermittent services
the 31st day of December in each year, unless the
as authorized by section 3109(b) of title 5, but at
Commission shall specify a different date, and shall be
rates for individuals not to exceed $250 per day plus
made out under oath and filed with the Commission at
expenses; and
its office in Washington within three months after the
(ii) entering into contracts or cooperative agreeclose of the year for which the report is made, unless
ments with any public . agency or instrumentality or
additional time be granted in any case by the Commiswith any person, firm . . association, corporation, or
sion . Such periodical or special reports as may be reinstitution, without regard to section 5 of title 41 .
quired by the Commission under paragraph (1) of this
section, shall also be under oath whenever the Com- (4) Depreciation charges
The Commission shall, as soon as practicable, premission so requires .
scribe for carriers the classes of property for which de(3) Uniform coat . and revenue accounting and reporting preciation charges may properly be included under opsystem for all an d me carriersc by
by inroad subject
erating expenses, and the rate or rates of depreciation
this
s chapter,
f
promulgation
re
regulations
a
ec to to which shall be charged with respect to each of such
;
criteria;
review
and
revision
of
dures; effective date
classes of property, classifying the carriers as it may
system ; authorization of appropriations
deem proper for this purpose. The Commission may,
(a) The Commission shall, not later than June 30,
when it deems necessary, modify the classes and rates
1977, issue regulations and procedures prescribing a so prescribed . When the Commission shall have exeruniform cost and revenue accounting and reporting cised its authority under the foregoing provisions of
system for all common carriers by railroad subject to this paragraph, carriers shall not charge to operating
this chapter . Such regulations and procedures shall expenses any depreciation charges on classes of propbecome effective not later than January 1, 1978 . erty other than those prescribed by the Commission.
Before promulgating such regulations and procedures, or charge with respect to any class of property a rate
the Commission shall consult with and solicit the of depreciation other than that prescribed therefor by
views of other agencies and departments of the Feder- the Commission, and no such carrier shall include
al Government, representatives of carriers, shippers, under operating expenses any depreciation charge in
and their employees, and the general public .
any form whatsoever other than as prescribed by the
(b) In order to assure that the most accurate cost
Commission.
and revenue data can be obtained with respect to light
density lines, main line operations, factors relevant in (5) Forma of accounts, records, and memoranda ; access to
records, etc ., by Commission or agents
establishing fair and reasonable rates, and other reguThe Commission may, in its discretion, prescribe the
latory areas of responsibility, the Commission shall
identify and define the following items as they pertain forms of any and all accounts, records, and memoranda to be kept by carriers and their lessors, including
to each facet of rail operations:
the accounts, records, and memoranda of the move(i) operating and nonoperating revenue accounts ;
(ii) direct cost accounts for determining fixed and ment of traffic, as well as of the receipts and expendivariable cost for materials, labor, and overhead com- tures of moneys, and it shall be unlawful for such carponents of operating expenses and the assignment riers or lessors to keep any accounts, records, and
of such costs to various functions, services, or activi- memoranda contrary to any rules, regulations, or

Page 559

TITLE 49, APPENDIX-TRANSPORTATION

§ 20

orders of the Commission with respect thereto . The memoranda of all facts and transactions appertaining
Commission or any duly authorized special agent, acto the business of the carrier, lessor, or person, or
countant, or examiner thereof shall at all times have shall knowingly and willfully keep any accounts,
authority to inspect and copy any and all accounts, records, or memoranda contrary to the rules, regulabooks, records, memoranda, correspondence, and other
tions, or orders of the Commission with respect theredocuments, of such carriers, lessors, and associations,
to, or shall knowingly or willfully file with the Comand such accounts, books, records, memoranda, corre- mission any false report or other document, shall be
spondence, and other documents, of any person condeemed guilty of a misdemeanor and shall be subject,
trolling, controlled by, or under common control with upon conviction in any court of the United States of
any such carrier, as the Commission deems relevant to competent jurisdiction to a fine of not more than five
such person's relation to or transactions with such carthousand dollars or imprisonment for not more than
rier. The Commission or its duly authorized special two years, or both such fine and imprisonment : Proagents, accountants, or examiners shall at all times vided, That the Commission may in its discretion issue
have access to all lands, buildings, or equipment of
orders specifying such operating, accounting, or finansuch carriers or lessors, and shall have authority
cial papers, records, books, blanks, tickets, stubs, correunder its order to inspect and examine any and all
spondence, or documents of such carriers, lessors, or
such lands, buildings, and equipment . Such carriers, other persons as may, after a reasonable time, be delessors, and other persons shall submit their accounts,
stroyed, and prescribing the length of time the same
books, records, memoranda, correspondence, and other shall be preserved .
documents for the inspection and copying authorized
(c) Any carrier or lessor, or person furnishing cars or
by this paragraph, and such carriers and lessors shall protective service, or any officer, agent, employee, or
submit their lands, buildings, and equipment to inspecthereof, who shall fail to make and file
tion and examination, to any duly authorized special representative
an annual or other report with the Commission within
agent, accountant, or examiner of the Commission, the time fixed by the Commission, or to make specific
upon demand and the display of proper credentials .
and full, true, and correct answer to any question
(6) Persons furnishing cars or protection against elements ; within thirty days from the time it is lawfully required
access to and forms of records, etc . ; reports
by the Commission so to do, shall forfeit to the United
The Commission or any duly authorized special States the sum of one hundred dollars for each and
agent, accountant, or examiner thereof shall at all every day it shall continue to be in default with respect thereto .
times have authority to inspect and copy any and all
accounts, books, records, memoranda, correspondence,
. (d) In case of failure or refusal on the part of any
and other documents, of persons which furnish cars or
carrier or lessor to accord to the Commission or its
protective service against heat or cold to or on behalf duly authorized special agents, accountants, or examof any carrier by railroad or express company subject
iners, access to, and opportunity for the inspection
to this chapter : Provided, however, That such author- and examination of, any lands, buildings, or equipity shall be limited to accounts, books, records, memoment of said carrier or lessor, as provided in this secranda, correspondence, or other documents which per- tion, such carrier or lessor shall forfeit to the United
tain or relate to the cars or protective service so furStates the sum of one hundred dollars for each day
nished . The Commission shall further have authority,
during which such failure or refusal continues .
in its discretion, to prescribe the forms of any or all
(e) All forfeitures authorized in this paragraph shall
accounts, records, and memoranda which it is author- be recovered in the manner provided for the recovery
ized by this paragraph to inspect and copy, and to reof forfeitures under the provisions of this chapter .
quire the persons furnishing such cars or protective
(f) Any special agent, accountant, or examiner who
service, as aforesaid, to submit such reports and specifknowingly and willfully divulges any fact or informaic and full, true, and correct answers to such ques- tion which may come to his knowledge during the
tions, relative to such cars or service, as the Commis- course of any examination or inspection made under
sion may deem necessary. Persons furnishing such authority of this section, except insofar as he may be
cars or protective service shall submit their accounts, directed by the Commission or by a court or judge
books, records, memoranda, correspondence, or other
thereof, shall be guilty of a misdemeanor and shall be
documents, to the extent above provided, for inspec- subject, upon conviction in any court of the United
tion or copying to any duly authorized special agent,
States of competent jurisdiction, to a fine of not more
accountant, or examiner of the Commission upon than $500 or imprisonment for not exceeding six
demand and the display of proper credentials .
months, or both.
(7) Penalties and forfeitures in connection with accounts,
(8) "Keep" and "kept" defined
records, reports, etc
(a) In case of failure or refusal on the part of any As used in this section, the words "keep" and "kept"
carrier, lessor, or other person to keep any accounts, shall be construed to mean made, prepared, or comrecords, and memoranda in the form and manner pre- piled, as wen as retained ; the term "carrier" means a
scribed, under authority of this section, by the Com- common carrier subject to this chapter, and includes a
receiver or trustee of such carrier; the term "lessor"
mission, or to submit any accounts, books, records,
memoranda, correspondence, or other documents to means a person owning a railroad, a water line, or a
pipe line, leased to and operated by a common carrier .
the commission or any of its authorized agents, accountants, or examiners for inspection or copying, as subject to this chapter, and includes a receiver or
required under this section, such carrier, lessor, or trustee of such lessor ; and the term "association"
person shall forfeit to the United States not to exceed means an association or organization maintained by or
$500 for each such offense and for each day during in the interest of any group of carriers subject to this
chapter which performs any service, or engages in any
which such failure or refusal continues .
activities, in connection with any traffic, transporta(b) Any person who shall knowingly and willfully
make, cause to be made, or participate in the making tion, or facilities subject to this Act.
of, any false entry In any annual or other report required under this section to be filed, or in the accounts (9) Jurisdiction to compel compliance by mandamus
of any book of accounts or in any records or memoranThe district courts of the United States shall have
da kept by a carrier, or required under this section to jurisdiction, upon the application of the Attorney
be kept by a lessor or other person, or who shall know- General of the United States at the request of the
Commission, alleging a failure to comply with or a vioingly and willfully destroy, mutilate, alter, or by any
other means or device falsify the record of any such lation of any of the provisions of said Act to regulate
commerce or of any Act supplementary thereto or
accounts, records, or memoranda, or who shall knowamendatory thereof by any common carrier, to issue a
ingly and willfully neglect or fail to make full, true,
writ or writs of mandamus commanding such common
and correct entries in such accounts, records, or

§ 20a

TITLE 49, APPENDIX-TRANSPORTATION

Page 560

carrier to comply with the provisions of said Acts, or ery to an amount not exceeding the value so declared
any of them . or released, and shall not, so far as relates to values,
be held to be a violation of section 10 of this Appen(10) Special agents or examiners
; and any tariff schedule which may be filed with
And to carry out and give effect to the provisions of dix
Commission pursuant to such order shall contain
said Acts, or any of them, the Commission is author- the
specific
reference thereto and may establish rates
ized to employ special agents or examiners who shall
varying with the value so declared and agreed upon ;
have power to administer oaths, examine witnesses,
and the Commission is empowered to make such order
and receive evidence.
in cases where rates dependent upon and varying with
(11) Liability of initial and delivering carrier for loss ; limits- declared or agreed values would, in its opinion, be just
tion of liability; notice and filing of claim
and reasonable under the circumstances and condiAny common carrier, railroad, or transportation
tions surrounding the transportation . The term "ordicompany subject to the provisions of this chapter re- nary livestock" shall include all cattle, swine, sheep,
ceiving property for transportation from a point in goats, horses, and mules, except such as are chiefly
one State or Territory or the District of Columbia to a
valuable for breeding, racing, show purposes, or other
point in another State, Territory, District of Colum- special uses : Provided further, That nothing in this
bia, or from any point in the United States to a point section shall deprive any holder of such receipt or bill
in an adjacent foreign country shall issue a receipt or
lading of any remedy or right of action which he
bill of lading therefor, and shall be liable to the lawful of
has under the existing law: Provided further, That all
holder thereof for any loss, damage, or injury to such actions brought under and by virtue of this paragraph
property caused by it or by any common carrier, railthe delivering carrier shall be brought, and
road, or transportation company to which such prop- against
be maintained, if in a district court of the United
erty may be delivered or over whose line or lines such may
States, only in a district, and if in a State court, only
property
may foreign
pass within
the United
States or within
a State through or into which the defendant carrier
an adjacent
country
when transported
on a in operates
a line of railroad: Provided further, That . it
through bill of lading, . and no contract, receipt, rule,
shall
be
unlawful for any such receiving or delivering
regulation, or other limitation of any character what- common carrier
to provide by rule, contract, regulasoever shall exempt such common carrier, railroad, or
or otherwise a shorter period for the filing of
transportation company from the liability hereby im- tion,
than nine months, and for the institution of
posed ; and any such common carrier, railroad, or claims
than two years, such period for institution of
transportation company so receiving property for suits
transportation from a point in one State, Territory, or suits to be computed from the day when notice in writthe District of Columbia to a point in another State or ing is given by the carrier to the claimant .that the carTerritory, or from a point in a State or Territory to a rier has disallowed the claim or any part or parts
point in the District of Columbia, or-from any point in thereof specified in the notice : And provided further,;
the United States to a point in an adjacent foreign That for the purposes of this paragraph and of pare
graph (12) of this section the delivering carrier shall
country, or for transportation wholly within a Territory, or any common carrier, railroad, or transporta- be construed to be the carrier performing the linehaul service nearest to the point of destination and
tion company delivering said property so received and
not a carrier performing merely a switching service at
transported shall be liable to the lawful holder of said
the point of destination : And provided further, That
receipt or bill of lading or to any party entitled to rethe liability imposed by this paragraph shall also
cover thereon, whether such receipt or bill of lading
apply, in the case of property reconsigned or .diverted
has been issued or not, for the full actual loss, damage,
or injury to such property caused by it or by any such in accordance with the applicable tariffs filed as in
common carrier, railroad, or transportation company this chapter p rovided.
to which such property may be delivered or over
(12) Recovery by initial or delivering carrier from connecting
whose line or lines such property may pass within the
carrier
United States or within an adjacent foreign country
when transported on a through bill of lading, notwithThe common carrier, railroad, or transportation
standing any limitation of liability or limitation of the
company issuing such receipt or bill of lading, or delivamount of recovery or representation or agreement as ering such property so received and transported, shall
to value in any such receipt or bill of lading, or in any
be entitled to recover from the common carrier, railcontract, rule, regulation, or in any tariff filed with road, or transportation company on whose line the
the Interstate Commerce Commission ; and any such loss, damage, or injury shall have been sustained, the
limitation, without respect to the manner or form in amount of such loss, damage, or injury as it may be rewhich it is sought to be made'% declared to be unlaw- quired to pay to the owners of such property, as may
ful and void: Provided, That if the loss, damage, or
be evidenced by any receipt, judgment, or transcript
injury occurs while the property is in the custody of a thereof, and the amount of any expense reasonably incarrier by water the liability of such carrier shall be curred by it in defending any action at law brought by
determined by the bill of lading of the carrier by
the owners of such property .
water and by and under the laws and regulations applicable to transportation by water, and the liability of 1906, 4 887
24b.. 25,
at 1909, u 193,
3591, § 7 1 34 pt.
93 Feb
the initial or delivering carrier shall be the same as
,
c
;
June
18,
,
at
.
309,
§
14, 36
h. 555;
35
t
648
That
that of such carrier by water : Provided, however,
1916,
1915, ch
un 118, 1910, Stat . 1196
§ ; Aug. a 1555
the provisions hereof respecting liability for full Mar4, 39 Stat. 441
17 ; Feb. 3 1920,
at .t ch . 91, §§ 9, 1 916,
actual loss, damage, or injury, notwithstanding any ch. 301,
Stat . 493, 494 ; July 3, 1926, ch . 761, 44 Stat. 835;
limitation of liability or recovery or representation or 41
. 4, 1927, ch. 510, § 3, 44 Stat. 1448; Apr . 23, 1930,
agreement or release as to value, and declaring any Mar
ch. 208, 46 Stat. 251 ; Aug. 9, 1935, ch . 498, § 1, 49 Stat.
such limitation to be unlawful and void, shall not
543 ; Sept. 18, 1940, ch . 722, title I, § 13, 54 Stat . 916;
apply, first, to baggage carried on passenger trains or June
3, 1948, ch . 386, 62 Stat. 295; Aug. 2, 1949 . ch. 379,
boats, or trains or boats carrying passengers ; second, §§ 7-9,
63 Stat . 486 ; Feb . 5, 1976, Pub . L. 94-210, title
to property, except ordinary livestock, received for
III, § 307, 90 Stat. 55 .)
transportation concerning which the carrier shall
have been or shall be expressly authorized or required
§ 20a. Repealed. Pub. L. 95-473, 9 4(b), (c), Oct. 17,
by order of the Interstate Commerce Commission to
establish and maintain rates dependent upon the
1978, 92 Stat. 1466, 1470
value declared in writing by the shipper or agreed
Section repealed subject to an exception related to
upon in writing as the released value of the property,
transportation of oil by pipeline. For disposition of
in which case such declaration or agreement shall
have no other effect than to limit liability and recov- this section in revised Title 49, Transportation, see

Page 56 1

TITLE 49, APPENDIX-TRANSPORTATION

§ 20a

Table at beginning of Title 49 . See, also, notes follow- tion as pledged or held unencumbered in the treasury
ing Table .
of the carrier shall, subsequent to the filing of such
Prior to repeal, section read as follows :
application or certificate, be sold, pledged, repledged,
or otherwise disposed of by the carrier, such carrier
§ 20s . Securities of carriers; issuance, etc .
shall, within ten days after such sale, pledge, repledge,
or other disposition, file with the Commission a certif(1) "Carrier" defined
As used in this section, the term "carrier" means a icate of notification to that effect, setting forth therecommon carrier by railroad (except a street, suburban, in all such facts as may be required by the Commisor interurban electric railway which is not operated as sion .
a part of a general steam railroad system of transpor- (6) Notice of application to governors of States ; intervention;
tation) which is subject to this chapter, or any corpohearings
ration organized for the purpose of engaging in transUpon receipt of any such application for authority
pdrtation bycompany
railroad
subject
to this
or a the Commission shall cause notice thereof to be given
sleeping-car
which
is subject
to chapter,
this chapter
. to and a copy filed with the governor of each State in
(2) Issuance of securities; assumption of obligations ; authori- which the applicant carrier operates . The railroad
zation
commissions, public service, or utilities commissions,
It shall be unlawful for any carrier to issue any or other appropriate State authorities of the State
share of capital stock or any bond or other evidence of shall have the right to make before the Commission
interest in or indebtedness of the carrier (hereinafter such representations as they may deem just and
in this section collectively termed "securities") or to proper for preserving and conserving the rights and
assume any obligation or liability as lessor, lessee, interests of their people and the States, respectively,
guarantor, indorser, surety, or otherwise, in respect of involved in such proceedings . The Commission may
the securities of any other person, natural or artificial, hold hearings, if it sees fit, to enable it to determine
even though permitted by the authority creating the its decision upon the application for authority .
carrier
corporation,
unless
and until,
only to
of Commission as exclusive and plenary
the extent
that, upon
application
by and
the then
carrier,
and(7) Jurisdiction
The jurisdiction conferred upon the Commission by
after investigation by the Commission of the purposes
and uses of the proposed issue and the proceeds there- this section shall be exclusive and plenary, and a earriof, or of the proposed assumption of obligation . or li- er may issue securities and assume obligations or liability in respect of the securities of any other person, abilities in accordance with the provisions of this secnatural or artificial, the Commission by order author- tion without
securing approval other than as specified
izes such issue or assumption . The Commission shall herein .
make such order only if it finds that such issue or as- (8) Guaranty of securities
sumption: (a) is for some lawful object within its corNothingorherein
shallasbetoconstrued
to imply
any
porate purposes, and compatible with the public inter- guaranty
obligation
such securities
on the
est, which is necessary or appropriate for or consistent part of the United States .
with the proper performance by the carrier of service
to the public as a common carrier, and which will not (9) Issue of short term notes ; certificate of notification; proviso
impair its ability to perform that service, and (b) is
reasonably necessary and appropriate for such pur- The foregoing provisions of this section shall not
pose: Provided, That nothing in this section is to be apply to notes to be issued by the carrier maturing not
construed as applying to securities issued or obliga- more than two years after the date thereof and aggretions or liabilities assumed by the United States or any gating (together with all ether then outstanding notes
instrumentality thereof, or by the District of Colum- of a maturity of two years or less) not more than 5 per
bia or any Instrumentality thereof, or by any State of centum of the par value of the securities of the carrier
the United States, or by any political subdivision or then outstanding . In the case of securities having no
municipal corporation of any State, or by any instru- par value, the par value for the purposes of this paramentality of one or more States, political subdivisions graph shall be the fair market value as of the date of
thereof, or municipal corporations.
issue. Within ten days after the making of such notes
the carrier issuing the same shall file with the Com(3) Scope of Commission's authority
The Commission shall have power by its order to mission a certificate of notification, in such form as
grant or deny the application as made, or to grant it in may from time to time be determined and prescribed
part and deny it in part, or to grant it with such modi- by the Commission, setting forth as nearly as may be
fications and upon such terms and conditions as the the same matters as those required in respect of appliCommission may deem necessary or appropriate in the cation
for authority to issue other securities : Provided, That in any subsequent funding of such notes the
premises,
and
may
from
time
to
time,
for
good
cause
shown, make such supplemental orders in the prem- provisions of this section respecting other securities
ises as it may deem necessary or appropriate, and may shall apply .
by any such supplemental order modify the provisions (10) Reports by carriers as to securities or proceeds
of any previous order as to the particular purposes,
The Commission shall require periodical or special
uses, and extent to which, or the conditions under reports from each carrier issuing any securities, inwhich, any securities so theretofore authorized or the eluding such notes, which shall show, in such detail as
proceeds thereof may be applied, subject always to the the Commission may require, the disposition made of
requirements of the paragraph (2) of this section .
such securities and the application of the proceeds
thereof.
(4) Form and contents of application ; oath and signature
Every application for authority shall be made in (11) Securities issued contrary to law void ; effect, penalty
such form and contain such matters as the CommisAny security issued or any obligation or liability assion may prescribe . Every such application, as also sumed
by a carrier, for which under the provisions of
every certificate of notification hereinafter provided this section the authorization of the Commission is refor,
be carrier
made under
oath,
signed and
filed
on quired,
be void, therefor
if issuedhaving
or assumed
behalfshall
of the
by its
president,
a vice
president,
suchshall
authorization
first without
been obauditor, comptroller, or other executive officer having mined, or if issued or assumed contrary to any term or
knowledge
set forth and duly condition of such order of authorization as modified
designated of
for the
thatmatters
purpose therein
by the carrier.
by any order supplemental thereto entered prior to
(5) Disposition of securities described in application, etc .
such issuance or assumption ; but no security issued or
Whenever any securities set forth and described in obligation or liability assumed in accordance with all
any application for authority or certificate of notifica- the terms and conditions of such an order of authori-

§ 20b

TITLE 49, APPENDIX-TRANSPORTATION

Page 562

zation therefor as modified by any order supplemental § 20b . Modification of railroad financial structures
thereto entered prior to such issuance or assumption,
shall be rendered void because of failure to comply (1) Approval and authorization of Commission ; exclusion of
equipment-trust securities
with any provision of this section relating to proceIt shall be lawful (any express provision contained in
dure and other matters preceding the entry of such
order of authorization . If any security so made void or any mortgage, indenture, deed of trust, corporate
any security in respect to which the assumption of ob- charter, stock certificate, or other instrument or any
ligation or liability is so made void, is acquired by any ing),
provision
law to
contrary notwithstandwith of
theState
approval
andthe
authorization
of the Comperson for value and in good faith and without notice mission, as provided in paragraph (2) of this section,
that the issue or assumption is void, such person may for a carrier as defined in section 20a(1) of this Appenin a suit or action in any court of competent jurisdic- dix to alter or modify (a) any provision of any class or
tion hold jointly and severally liable for the full classes of its securities as defined in section 20a(2) of
amount of the damage sustained by him in respect this Appendix being hereinafter in this section somethereof, the carrier which issued the security so made times called "securities" ; or (b) any provision of any
void, or assumed the obligation or liability so made mortgage, indenture, deed of trust, corporate charter,
void, and its directors, officers, attorneys, and other or other instrument pursuant to which any class of its
agents, who participated in any way in the authoriz- securities shall have been issued or by which any class
ing, issuing, hypothecating, or selling of the security of its obligations is secured (hereinafter referred to as
so made void or in the authorizing of the assumption instruments) : Provided, That the provisions of this
of the obligation or liability so made void . In case any section shall not apply to any equipment-trust certifisecurity so made void was directly acquired from the cates in respect of which a carrier is obligated, or to
carrier issuing it the holder may at his option rescind any evidences of indebtedness of a carrier the paythe transaction and upon the surrender of the security ment of which is secured in any manner solely by
recover the consideration given therefor . Any director, equipment, or to any instrument, whether an agreeofficer, attorney, or agent of the carrier who knowing- ment, lease, conditional-sale agreement, or otherwise,
ly assents to or concurs in any issue of securities or as- pursuant to which such equipment-trust certificates or
sumptions of obligation or liability forbidden by this such evidences of indebtedness shall have been issued
section, or any sale or other disposition of securities or by which they are secured .
contrary to the provisions of the Commission's order (2) Application ; public hearing; findings ; submission of plan
or orders in the premises, or any application not auto security holders ; order of Commission ; force and
thorized by the Commission of the funds derived by
effect
the carrier through such sale or other disposition of
Whenever an alteration or modification is proposed
such securities, shall be guilty of a misdemeanor and under paragraph (1) of this section, the carrier seeking
upon conviction shall be punished by a fine of not less authority therefor shall, pursuant to such rules and
than $1,000 nor more than $10,000, or by imprison- regulations as the Commission shall prescribe, present
ment for not less than one year nor more than three an application to the Commission . Upon presentation
years, or by both such fine and imprisonment, in the of any such application, the Commission may, in its
discretion, but need not, as a condition precedent to
discretion of the court.
further consideration, require the applicant to secure
(12) Restrictions on actions of officers and directors; penalty assurances of assent to such alteration or modification
It shall be unlawful for any person to hold the posi- by holders of such percentage of the aggregate princition of officer or director of more than one carrier, pal amount or number of shares outstanding of the seunless such holding shall have been authorized by curities affected by such alternation or modification
order of the Commission, upon due showing, in form as the Commission shall in its discretion determine . If
and manner prescribed by the Commission, that nei- the Commission shall not require the applicant to
ther public nor private interests will be adversely af- secure any such assurances, or when such assurances,
. It shall be unlawful for any officer or as the Commission may require shall have been sefected thereby
director of any carrier to receive for his own benefit, cured, the Commission shall set such application for
directly or indirectly, any money or thing of value in public
hearing
carrier
shall give
reasonable
notice of
such and the in
such manner,
by mail,
adverrespect of the negotiation, hypothecation, or sale of
may d ,
the ho
of may find
semen or otherwise,
any securities issued or to be issued by such carrier, or practicable and
direct, to other
holders
such
its
to share in any of the proceeds thereof, or to particiclasses of securities and to such
r persons in interpate in the making or paying of any dividends of an est as the Commission shall determine to be approprioperating carrier from any funds properly included in ate and shall direct . If the Commission, after hearing,
capital account . Any violation of these provisions shall in addition to making (in any case where such alterbe a misdemeanor, and on conviction m any United ation or modification involves an issuance of securiStates court having jurisdiction shall be punished by a ties) the findings required by paragraph (2) of section
fine of not less than $1,000 nor more than $10,000, or 20a of this Appendix, not inconsistent with paragraph
by imprisonment for not less than one year nor more (1) of this section shall find that, subject to such
than three years, or by both such fine and imprison- terms and conditions and with such amendments as it
ment, in the discretion of the court .
shall determine to be just and reasonable, the pro(Feb. 4, 1887, ch. 104, pt. I, § 20a, as added Feb. 28, posed alteration or modification(a) is within the scope of paragraph (1) of this sec1920, ch. 91, § 439, 41 Stat . 494, and amended Aug . 9,
tion:
.
543
;
Aug.
2,
1949,
ch.
739,
1935, ch . 498, § 1, 49 Stat
(b) will be in the public interest ;
§ 10, 63 Stat. 487; July 24, 1965, Pub. L. 89-86, 11, 79
(c) will be in the best interests of the carrier, of
Stat . 263.)
each class of its stockholders, and of the holders of
each class of its obligations affected by such modifi§ 20b . Repealed. Pub. L . 95-473, § 4(b), (c), Oct . 17,
cation or alteration; and
1978, 92 Stat. 1466, 1470
(d) will not be adverse to the interests of any creditor of the carrier not affected by such modification
Section repealed subject to an exception related to
or alteration,
transportation of oil by pipeline . For disposition of then (unless the applicant, carrier shall withdraw its
this section in revised Title 49, Transportation, see application) the Commission shall cause the carrier, in
Table at beginning of Title 49 . See, also, notes follow- such manner as it shall direct, to submit the proposed
ing Table .
alteration or modification (with such terms, conditions, and amendments, if any) to the holders of each
Prior to repeal, section read as follows :

1

t

Page 563

TITLE 49, APPENDIX-TRANSPORTATION

§ 20b

class of its securities affected thereby, for acceptance
this section as to whether the required percentage of
or rejection. The Commission shall have the power to
the aggregate principal amount or number of shares
make such general rules and regulations and such spe- outstanding of each class of securities affected by any
cial requirements in any particular case in respect to proposed alteration or modification has assented to
the solicitation of assents, opposition, assurances of the making of such alteration or modification, any seassent, acceptance, approval, or disapproval of such curity which secures any evidence or evidences of inholders (whether such solicitation is made before or
debtedness of the carrier or of any company controlafter approval of the proposed alteration or modifica- ling or controlled by the carrier shall be deemed to be
tion by the Commission), as it shall deem necessary or outstanding unless the Commission in its discretion
desirable; and no solicitation shall be made, and no determines that the proposed alteration or modificaletter, circular, advertisement, or other communication does not materially affect the interests of the
tion, or financial or statistical statement, or summary
holder or holders of the evidence or evidences of inthereof, shall be used in any such solicitation, in condebtedness secured by such security . Whenever any
travention of such rules, regulations, or special re- such pledged security is, for said purposes, to be
quirements. The Commission may direct that the as- deemed outstanding, assent in respect of such securisents (and any revocations thereof) of such holders to ty, as to any proposed alteration or modification, may
the proposed alteration or modification shall be adgiven only (any express or implied provision in any
dressed to a bank or trust company, approved by it, be
mortgage, indenture, deed of trust, note, or other inwhich is incorporated under the laws of the United
strument to the contrary notwithstanding) as follows :
States or any State thereof, and which has a capital
Where such security is pledged as security under a
and surplus of at least $2,000,000, and is a member of (a)
indenture, deed of trust, or other instrutheFederal Reserve System. Any bank or trust compa- mortgage,
ment, pursuant to which any evidences of indebtedny so approved shall certify to the Commission the ness are issued and outstanding, by the holders of a
result
of such submission
and certification
the Commission
amount of such evidences of snits discretion,
rely upon such
as may,
concluin majority in principal
or (b) where such security secures an evision. I f the
the result such ubm of debtedness,
dence or evidences of indebtedness not issued pursus uch If
Commission
sshall
shall find that as a result
ant to such a mortgage, indenture, deed of trust, or
s
proposed
alteration
or
submission
instrument, by the holder or holders of such evition has been assented to by the holders of at least le
75 other
dence or evidences of indebtedness ; and in any such
per centum of the aggregate principal amount or
case the Commission, in addition to the submission renumber of shares outstanding of each class of securito in paragraph (2) of this section, shall cause
ties affected thereby (or as to any class (I) where 75 ferred
the carrier in such manner as it shall direct to submit
per centum thereof is held by fewer than twenty-five
the proposed alteration or modification (with such
holders, or (ii) which is entitled to vote for the elecconditions, and amendments, if any, as the
tion of directors of the carrier and the assents of the terms,
holders of 25 per centum or more thereof are deter- Commission shall have determined to be just and reamined by the Commission to be within the control of sonable) for acceptance or rejection, to the holders of
the carrier or of any person or persons controlling the the evidences of indebtedness issued and outstanding
carrier, such larger percentage, if any, as the Commis- pursuant to such mortgage, indenture, deed of trust,
sion may determine to be just and reasonable and in or other instrument, or to the holder or holders of
the public interest), the Commission shall enter an such evidence or evidences of indebtedness not so
order approving and authorizing the proposed alter- issued, and such proposed alteration or modification
ation or modification upon the terms and conditions need not be submitted to the trustee of any such mortand with the amendments, if any, so determined to be gage, indenture, deed of trust, or other instrument,
just and reasonable . Such order shall make provision but assent in respect of any such security shall be deas to the time when such alteration or modification termined as hereinbefore in this section provided. For
shall become and be binding, which may be upon pub- the purposes of this section a security (other than a
security entitled to vote for the election of directors of
lication of a declaration to that effect by the carrier,
or otherwise, as the Commission may determine . Any the carrier) or an evidence of indebtedness shall not
alteration or modification which shall become and be be deemed to be outstanding if, in the determination
of the Commission, the assent of the holder thereof to
binding pursuant to the approval and authority of the
any proposed alteration or modification is within the
Commission hereunder shall be binding upon each
holder of any security of the carrier of each class af- control of the carrier or of any person or persons confected by such alteration or modification, and upon trolling the carrier. The Commission shall, for the
purposes of this section, divide the securities to be afany trustee or other party to any instrument under
fected by any proposed alteration or modification into
which any class of obligations shall have been issued
such classes as it shall determine to be just and reaor by which it is secured, and when any alteration or
modification shall become and be binding the rights of sonable .
each such holder and of any such trustee or other
(4) Modification of securities of carrier acting as guarantor,
party shall be correspondingly altered or modified .
endorser, surety, or otherwise ; person deemed carrier
;
what
constitutes
out(3) When class of securities affected
(a)
Any authorization and approval hereunder of
standing securities ; assent to modification
For the purposes of this section a class of securities any alteration or modification of a provision of any
class of securities of a carrier or of a provision of any
shall be deemed to be affected by any modification or
instrument pursuant to which a class of securities has
alteration proposed only (a) if a modification or alterbeen issued, or by which it is secured, shall be deemed
ation is proposed as to any provision of such class of
securities, or (b) if any modification or alteration is to constitute authorization and approval of a corresponding alteration or modification of the obligation
proposed as to any provision of any instrument pursuof any other carrier which has assumed liability in reant to which such class of securities shall have been
issued or shall be secured: Provided, That in any case spect of such class of securities as guarantor, endorser,
surety, or otherwise : Provided, That such other carrier
where more than one class of securities shall have
consents in writing to such alteration or modification
been issued and be outstanding or shall be secured
of such class of securities in respect of which it has aspursuant to any instrument, any alteration or modifisumed liability or of the instrument pursuant to
cation proposed as to any provision of such instrument
which does not relate to all of the classes of securities which such class of securities has been issued or by
which it is secured and, such consent having been
issued thereunder, shall be deemed to affect only the
class or classes of securities to which such alteration given, any such corresponding alteration or modificaor modification is related . For the purpose of the find- tion shall become effective, without other action,
ing of the Commission referred to in paragraph (2) of when the alteration or modification of such class of se-

§ 20b

TITLE 49, APPENDIX-TRANSPORTATION

Page 564

curities or of such instrument shall become and be
(9) Solicitation of proxies
binding .
The provisions of subsection (a) of section 78n of
(b) Any person who is liable or obligated contingent- title 15 shall not apply to any solicitation in connecly or otherwise on any class or classes of securities tion with a proposed alteration or modification pursuissued by a carrier shall, with respect to such class or ant to this section.
classes of securities, for the purposes of this section,
(10) Rules and regulations
be deemed a carrier .
The Commission shall have the power to make such
(5) Authority of section as exclusive and plenary
rules and regulations appropriate to its administration
The authority conferred by this section shall be exof the provisions of this section as it shall deem necesclusive and plenary and any carrier, in respect of any sary or desirable .
alteration or modification authorized and approved by
(11) Issuance of securities ; law governing
the Commission hereunder, shall have full power to
Any issuance of securities under this section which
make any such alteration or modification and to take
any actions incidental or appropriate thereto, and may shall be found by the Commission to comply with the
make any such alteration or modification and take requirements of paragraph (2) of section 20a of this
any such actions, and any such alteration or modifica- Appendix shall be deemed to be an issuance which is
tion may be made without securing the approval of subject to the provisions of section 20a of this Appenthe Commission under any other section of this Act or dix within the meaning of section 3(a)(6) of the Secuother paragraph of this section, and without securing rities Act of 1933, as amended [15 U .S .C. 77c(a)(6)] .
approval of any State authority, and any carrier and Section 5 of said Securities Act [15 U .S.C . 77e) shall
not apply to the issuance, sale, or exchange of certifiits officers and employees and any other persons, participating in the making of an alteration or modifica- cates of deposit representing securities of, or claims
tion approved and authorized under the provisions of against, any carrier which are issued by committees in
this section or the taking of any such actions, shall be, proceedings under this section, and said certificates of
and they are, relieved from the operation of all re- deposit and transactions therein shall, for the purstraints, limitations, and prohibitions of law, Federal, poses of said Securities Act [15 U .S.C . 77a et seq .] be
deemed to be added to those exempted by sections 3
State, or municipal, insofar as may be necessary to
enable them to make and carry into effect the alter- and 4, respectively, of said Securities Act (15 U .S.C .
77c, 77d) .
ation or modification so approved and authorized in
accordance with the conditions and with the amendTaxes on issuance, transfer, or exchange of securities
ments, if any, imposed by the Commission . Any power (12)
provisions of sections 1801, 1802, 3481, and 3482
granted by this section to any carrier shall be deemed ofThe
the Internal Revenue Code (of 19391 and any
to be in addition to and in modification of its powers
thereto, unless specifically providing to
under its corporate charter or under the laws of any amendments
contrary, . shall not apply to the issuance, transfer,
State. The provisions of this section shall not affect in the
exchange of securities or the making or delivery of
any way the negotiability of any security of any carri- or
to make effective any alteration or modier or of the obligation of any carrier which has as- conveyances
fication effected pursuant to this section .
sumed liability in respect thereto .
(13) Conditions permitting modification and adjustment pro(6) Reports to Commission from carrier
cedure to carriers in receivership or reorganization proThe Commission shall require periodical or special
ceedings
reports from each carrier which shall hereafter secure
The
Commission shall not approve an application
from the Commission approval and authorization of
section, filed under this section by any carrier while in equity
any
alteration
or
modification
under
this
which shall show, in such detail as the Commission receivership or in process of reorganization under section 77 of the Bankruptcy Act, except that the Commay require, the action taken by the carrier in the
mission may approve an application filed by a carrier
making of such alteration or modification .
which, on April 9, 1948, is in equity receivership and
with respect to which no order confirming the sale of
(7) Section as permissive
the carrier's property has been entered, or is in prooThe provisions of this section are permissive and not
ess of reorganization under section 77 and with respect
mandatory and shall not require any carrier to obtain
to which no order confirming a plan shall have been
authorization and approval of the Commission hereentered, or, such an order having been entered, if an
under for the making of any alteration or modification
of any provision of any of its securities or of any class appeal from said order is pending on said date in a
court of appeals or the matter is pending in the Suthereof or of any provision of any mortgage, indenpreme Court on a petition to review any order of a
ture, deed of trust, corporate charter, or other instrucourt of appeals dealing with said order of confirmament, which it may be able lawfully to make in any
other manner, whether by reason of provisions for the tion or the time within which to make such appeal or
file such petition has not expired, if prior to the
making of such alteration or modification in any such to
of such application with the Commission such
mortgage, indenture, deed of trust, corporate charter, filing
shall have applied for and been granted peror other instrument, or otherwise : Provided, That the carrier
provisions of paragraph (2) of section 20a of this Ap- mission to file such application by the district judge
pendix, if applicable to such alteration or modification before whom the equity receivership or section 205 of
11 proceeding is pending. Any such carrier applymade otherwise than pursuant to the provisions of title
ing for permission to file such application shall file
this section, shall continue to be so applicable .
with the court as a prerequisite to the granting of
such permission (1) a copy of the proposed applica(8) Law governing applications; supplemental orders
tion, (2) a copy of the proposed plan of alteration or
The provisions of paragraph (6) of section 20a of
modification of its securities, and (3) assurances satisthis Appendix, except the provisions of paragraph (6)
factory to the court of the acceptance of such plan
of said section in respect of hearings, shall apply to
applications made under this section . In connection from holders of at least 25 per centum of the aggrewith any order entered by the Commission pursuant gate amount of all securities, including not less than
to paragraph (2) of this section, the Commission may 25 per centum of the aggregate amount of all creditors' claims, affected by such plan. An order of a disfrom time to time, for good cause shown, make such
trict judge granting or withholding such permission
supplemental orders in the premises as it may deem
shall be final and shall not be subject to review . Upon
necessary or appropriate, and may by any such supplegranting of such permission, such proceeding, so far as
mental order modify the provisions of any such order,
it relates to a plan of reorganization, shall be suspendsubject always to the requirements of paragraph (2) of
ed until the Commission shall have notified the court
this section .

Page 565

TITLE 49, APPENDIX-TRANSPORTATION

§ 22

that (a) the application filed by such carrier under pursuant to the provisions of this section, and shall
this section has been dismissed or denied by the Com- cause to be marked or stamped thereon, a consecutive
mission or withdrawn, (b) the Commission has . ap- number, as well as the date and hour of such recordaproved and authorized an alteration or modification tion, and shall maintain, open to public inspection, an
under this section with respect to the securities of index of all such instruments or documents, including
such carrier, or (c) twelve months have elapsed since any assignment, amendment, release, discharge or satthe filing of such application and no such alteration or isfaction thereof, and shall record, in such index the
modification has been approved and authorized by the names and addresses of the principal debtors, trustees,
Commission. Upon receipt by the court of notification guarantors and other parties thereto, as well as such
that such application has been dismissed or denied or other facts as may be necessary to facilitate the deterwithdrawn or that twelve months have elapsed and no mination of the rights of the parties to such transacalteration or modification has been approved and au- tions .
thorized, the equity receivership or section 77 proceed- (Feb . 4, 1887, ch. 104, pt . I, 4 20c, as added July 16,
ing shall be resumed as though permission to file ap- 1952, ch . 881, 66 Stat . 724, and amended Nov . 6, 1978,
plication under this section had not been granted . Pub. L. 95-598, title III, § 337(a), 92 Stat. 2680.)
Upon receipt by the court of notification that the
Commission has authorized and approved such alter- § 21 . Repealed. Pub. L- 95-473, 9 4(b), (c), Oct. 17,
ation or modification of the carrier's securities under
1978, 92 Stat . 1466, 1470
this section as, in the judgment of the court, makes
further receivership or section 77 proceeding unnecesSection repealed subject to an exception related to
sary, the court shall enter an order restoring custody transportation of oil by pipeline . For disposition of
of the property to the debtor, and making such other this section in revised Title 49, Transportation, see
provision as may be necessary to terminate the equity Table at beginning of Title 49 . See, also, notes followreceivership or.section 77 proceeding.
ing Table.
Prior to repeal, section read as follows :
(Feb. 4, 1887, ch . 104, pt. I, 4 20b, as added Apr . 9, 1948,
ch . 180, f 2, 62 Stat . 163, and amended June 25, 1948,
ch . 646, § 32(a), 62 Stat . 991 ; May 24, 1949, ch. 139, 9 21 . Annual reports of Commission
§ 127, 63 Stat. 107 ; Aug. 16, 1957, Pub . L. 85-150, §1 1,
The Commission shall, on or before the 3d day of
2, 71 Stat . 369.)
April of each year, make a report which shall be transto Congress and copies of which shall be dis9 20c. Repealed. Pub. L . 95-473, § 4(b), (c), Oct . 17, mitted
tributed as are the other reports transmitted to Con1978, 92 Stat. 1466, 1470 ;
gress : : This report shall contain such information and
June 3, 1980, 94 Stat. 427
data collected by the Commission as may be considSection repealed subject to an exception
related
to
ered
value
the determination
of questions
. Section 337(a) of nectedofwith
theinregulation
of commerce,
together conwith
transportation
of
oil
by
pipeline
.
L
95-598,
which
amended
this
section
effective
such
recommendations
as
to
additional
legislation
rerePub
thereto
the compensation
Commission may
deempersons
necessary;
Oct. 1, 1979, subsequent to the repeal of this sectionlating
and the
namesasand
of the
emby Pub . L. 95-473, was repealed by Pub . L. 96-258, ef- ployed by said Commission .
fective June 3, 1980, as provided by section 3(e) of
Pub. : X, 96-258 . For disposition of this section in re- (Feb . 4, 1887, ch. 104, pt. I, 21. 24 Stat. 387 ; Mar. 2,
1889, ch. 382, 4 8, 25 Stat . 862; May 23, 1935, ch. 136, 49
oiled Title 49, also,
fo l see Table at beginning
Stat . 287; Apr. 21, 1976, Pub. L. 94-273, 111(4), 90 Stat.
of Title 49 . See,
notes following Table .
378.)
Prior to repeal, section read as follows:
9 20c. Recordation of railroad equipment trust agreements § 22 . Repealed. Pub . L. 95-473, 9 4(b), (c), Oct . 17,
1978,92 Stat. 1466, 1470
and other evidences of equipment indebtedness
Any mortgage, lease, equipment trust agreement,
Section repealed
subject
to an exception related to
conditional sale agreement, or other instrument evi- transportation
of oil
by pipeline
. For disposition
dencing the mortgage, lease, conditional sale, or bail- this section in revised Title 49, Transportation,
seeof
ment of railroad cars, locomotives; or other rolling Table at beginning of Title 49. See, also, notes followstock, used or intended for use in connection with ing Table .
interstate commerce, or any assignment of rights or
Prior to repeal, section read as follows :
interest under any such instrument, or any supplement or amendment to any such instrument or assignment (including any release, discharge or satisfaction 9 22 . Restrictions; quotations of rates for United States Government
thereof, in whole or in part), may be filed with the
(1) Nothing in this chapter shall prevent the carCommission, provided such instrument, assignment,
supplement or amendment is in writing, executed by riage, storage, or handling of property free or at rethe parties thereto, and acknowledged or verified in duced rates for the United States, State, or municipal
accordance with such requirements as the Commission governments, or for charitable purposes, or to or from
shall prescribe ; and any such instrument or other doc- fairs and expositions for exhibition thereat, or the
ument, when so filed with the Commission, shall con- free carriage of destitute and homeless persons transstitute notice to and shall be valid and enforceable ported by charitable societies, and the necessary
against all persons including, without limitation, any agents employed in such transportation, or the transpurchaser from, or mortgagee, creditor, receiver, or portation of persons for the United States Governtrustee in a case under title 11 bankruptcy of, the ment free or at reduced rates, or the issuance of milemortgagor, buyer, lessee or bailee of the equipment age, excursion, or commutation passenger tickets ;
covered thereby, from and after the time such instru- nothing in this chapter shall be construed to prohibit
ment or other document is so filed with the Commis- any common carrier from giving reduced rates to minsion; and such instrument or other document need not isters of religion, or to municipal governments for the
be otherwise filed, deposited, registered or recorded transportation of indigent persons, or to inmates of
under the provisions of any other law of the United Veterans' Administration facilities or State Homes for
States of America, or of any State (or political subdivi- Disabled Volunteer Soldiers and of Soldiers' and Sailsion thereof), territory, district or possession thereof, ors' Orphan Homes, including those about to enter
respecting the filing, deposit, registration or recorda- and those returning home after discharge, under artion of such instruments or documents . The Commis- rangements with the boards of managers of said
sion shall establish and maintain a system for the rec- homes ; nothing in this chapter shall be construed to
ordation of each such instrument or document, filed prohibit any common carrier from establishing by

§ 23

TITLE 49, APPENDIX-TRANSPORTATION

Page 566

publication and filing in the manner prescribed in sec- the period during which such reduced rates are to
tion 6 of this Appendix reduced fares for application remain in effect, and (3) clearly define the class or
to the transportation of (a) personnel of United States classes of persons entitled to such reduced rates : Proarmed services or of foreign armed services, when such
vided, That any such order may define the class or
persons are traveling at their own expense, in uniform
classes entitled to such reduced rates as being persons
of those services, and while on official leave, furlough,
designated as being in distress and in need of relief by
or pass; or (b) persons discharged, retired, or released agents of the United States or any State authorized to
from United States armed services within thirty days assist in relieving the distress caused by any such caprior to the commencement of such transportation lamitous visitation or disaster. No carrier subject to
and traveling at their own expense to their homes or the provisions of this chapter shall be deemed to have
other prospective places of abode ; nothing in this violated the provisions of such chapter with respect to
chapter shall be construed to prevent railroads from undue or unreasonable preference or unjust discrimigiving free carriage to their own officers and employnation by reason of the fact that such carrier extends
ees, or to prevent the free carriage, storage, or hansuch reduced rates only to the class or classes of perdling by a carrier of the household goods and other
sons defined in the order of the Commission authorizpersonal effects of its own officers or employees when
such reduced rates .
such goods and effects must necessarily be moved ing(2)
quotations or tenders of rates, fares or
from one place to another as a result of a change in chargesAllunder
paragraph (1) of this section for the
the place employment of such officers orprevent
employees
while in the service of the carrier, or to
the transportation, storage, or handling of property or the
principal officers of any railroad company or compa- transportation of persons free or at reduced rates for
nies from exchanging passes or tickets with other rail- the United States Government, or any agency or deroad companies for their officers and employees ; and partment thereof, including quotations or tenders for
nothing in this chapter contained shall in any way retroactive application whether negotiated or renegoabridge or alter the remedies now existing at common tiated after the services have been performed, shall be
law or by statute, but the provisions of this chapter in writing or confirmed in writing and a copy or copies
are in addition to such remedies ; nothing in this chap- thereof shall be submitted to the Commission by the
ter shall be construed to prohibit any common carrier carrier or carriers offering such tenders or quotations
from carrying any totally . blind . person accompanied in the manner specified by the Commission and only
by a guide or seeing-eye dog . or other guide dog spe- upon the submittal of such a quotation or tender
cially trained and educated for that purpose or from made pursuant to an agreement approved by the Comcarrying a disabled person accompanied by an attend- mission under section 5b or section 5c of this Appenant if such person is disabled to the extent of requir- dix shall the provisions of paragraph (9) of such secing such attendant, at the usual and ordinary fare tion 5b or paragraph (8) of such section 5c apply, but
charged to one person, under such reasonable regula- said provisions shall continue to apply as to any agreetions as may have been established by the carrier : Pro- ment so approved by the Commission under which any
such quotation or tender (a) was made prior to August
vided, That no pending litigation shall in any way be
affected by this chapter: Provided further, That noth- 31, 1957 or , (b) is on or after August 31, 1957 made and
ing in this chapter shall prevent the issuance of joint for security reasons, as hereinafter provided, is not
interchangeable five-thousand-mile tickets, with spe- submitted to the Commission : Provided, That nothing
cial privileges as to the amount of free baggage that in this paragraph shall affect any liability or cause of
may be carried under mileage tickets of one thousand action which may have accrued prior to August 31,
1957 . Submittal of such quotations or tenders to the
or more miles. But before any common carrier, subject
to the provisions of this chapter, shall issue any such Commission shall be made. concurrently with submitjoint interchangeable mileage tickets with special tal to the United States Government, or any agency or
privileges, as aforesaid, it shall file with the Interstate
department thereof, for-whose account the quotations
Commerce Commission copies of the joint tariffs of
or tenders are offered or for whom the proposed servrates, fares, or charges on which such joint interices are to be rendered . Such quotations or tenders
changeable mileage tickets are to be based, together shall be preserved by the Commission for public inwith specifications of the amount of free baggage perspection . The provisions of this paragraph requiring
mitted to be carried under such tickets, in the same submissions to thp Commission shall not apply to any
manner as common carriers are required to do with
quotation or tender which, as indicated by the United
regard to other joint rates by section 6 of this Appen- States Government, or any agency or department
dix ; and all the provisions of said section relating to
thereof, to any carrier or carriers, involves informajoint rates, fares, and charges shall be observed by tion the disclosure of which would endanger the nasaid common carriers and enforced by the Interstate
tional security .
Commerce Commission as fully with regard to such (Feb. 4, 1887, ch . 104, pt. I, 122, 24 Stat. 387 ; Mar . 2,
joint interchangeable mileage tickets as with regard to 1889, ch . 382, 9, 25 Stat. 862 ; Feb. 8, 1895, ch . 61, 28
other joint rates, fares, and charges referred to in said
. 643 ; Aug . 18, 1922, ch. 280, 42 Stat . 827 ; Feb. 26,
section . It shall be unlawful for any common carrier Stat
1927,
217, 44 Stat. 1247; Mar. 4, 1927, ch. 510, § 1,
that has issued or authorized to be issued any such 44 Statch.
. 1446 : June 27, 1934, ch . 847, title V, § 511, 48
joint interchangeable mileage tickets to demand, colStat. 1264 ; Aug. 9, 1935, ch. 498, 11, 49 Stat . 543 ; July
lect, or receive from any person or persons a greater or
1937, ch. 432, 50 Stat . 475 ; Aug. 25, 1937, ch. 776, 50
less compensation for transportation of persons or 5,
809 ; Sept . 18, 1940, ch . 722, title I, § 3(c)-(e), 54
baggage under such joint interchangeable mileage Stat.
.
Sept . 27, 1944, ch. 423, 58 Stat. 751; July 27,
Stat
tickets than that required by the rate, fare, or charge 1956, 900;
ch
.
759, 70 Stat. 702 ; Aug . 31, 1957, Pub . L.
specified in the copies of the joint tariff of rates, fares,
71 Stat . 564 ; Sept . 2, 1958, Pub . L. 85-857,
or charges filed with the Commission in force at the 85-246,
§ 13(a), 72 Stat . 1264; Oct. 19, 1976, Pub . L . 94-555,
time. The provisions of section 10 of this Appendix title
II, § 220(n), 90 Stat . 2630 .)
shall apply to any violation of the requirements of
.
Nothing
in
this
chapter
shall
prevent
any
this proviso
carrier or carriers subject to this chapter from giving § 23. Repealed. Pub. L . 95-473, § 4(b), (c), Oct. 17,
1978, 92 Stat. 1466, 1470
reduced rates for the transportation of property to or
from any section of the country with the object of
Section repealed subject to an exception related to
providing relief in case of earthquake, flood, fire,
famine, drought, epidemic, pestilence, or other calami- transportation of oil by pipeline . For disposition of
tous visitation or disaster, if such reduced rates have this section in revised Title 49, Transportation, see
first been authorized by order of the Commission Table at beginning of Title 49 . See, also, notes follow(with or without a hearing); but in any such order the ing Table .
Commission shall (1) define such section, (2) specify
Prior to repeal, section read as follows :

Page 567

TITLE 49, APPENDIX-TRANSPORTATION

9 26

stall such systems, devices, appliances, or meth§ 23. Mandamus to obtain equal facilities for shippers
The district courts of the United States shall have ods upon a portion of its railroad not included
jurisdiction upon the relation of any person or per- in the order, and any action arising because of
sons, firm, or corporation, alleging such violation by a an accident occurring upon such portion of its
common carrier, of any of the provisions of the act to railroad shall be determined without considerwhich this is a supplement and all acts amendatory ation of the use of such systems, devices, applitraffic as prevents the relator from having interstate
traffic moved by said common carrier at the same ances, or methods upon another portion of its
rates as are charged, or upon terms or conditions as fa- railroad .
vorable as those given by said common carrier for like
traffic under similar conditions to any other shipper, (c) Filing report on rules, standards, and instructions; time; modification
to issue a writ or writs of mandamus against said
common carrier, commanding such common carrier to
Each railroad shall file with the Secretary of
move and tres for ns trafftraffic, of
or
fu
furnish
cars
other facilities
transportation for the party apply- Transportation its rules, standards, and instrucing for the writ: Provided, That if any question of fact tions for the installation, inspection, mainteas to the proper compensation to the common carrier nance, and repair of the systems, devices, and
for the service to be enforced by the writ is raised by appliances covered by this section within six
the pleadings, the writ of peremptory mandamus may months after August 26, 1937, and, after apissue, notwithstanding such question of fact is unde- proval by the Secretary of Transportation, such
termined, upon such terms as to security, payment of rules, standards, and instructions, with such
money into the court, or otherwise, as the court may modifications as the Secretary of Transportation proper, pending the determination of the question of fact: Provided, That the remedy given by writ tion may require, shall become obligatory upon
of mandamus shall be cumulative, and shall not be the railroad : Provided, however, That if any
held to exclude or interfere with other remedies pro- such railroad shall fail to file its rules, standvided by this act or the act to which it is a supple- ards, and instructions the Secretary of Transment.
portation shall prepare rules, standards, and in(Feb. 4, 1887, ch. 104, pt . I, § 23, formerly Mar . 2, 1889, structions for the installation, inspection, mainch. 382, 110, 25 Stat . 862 ; Mar . 3, 1911, ch. 231, § 291, tenance, and repair of such systems, devices,
36 Stat. 1167, renumbered May 16, 1942, ch . 318, § 5, 56 and appliances to be observed by such railroad,
Stat. 301 .)
which rules, standards, and instructions, a copy
thereof having been served on the president,
1940,
ch
.
722,
title
I,
914(a),
§ 25. Repealed. Sept. 18,
chief operating officer, trustee, or receiver, of
54 Stat . 919
such railroad, shall be obligatory: Provided furSection, act Feb . 4, 1887, ch . 104, pt . I, § 25, as added ther, That such railroad may from time to time
by act Feb. 28, 1920, ch . 91, § 441, 41 Stat . 497, and change the rules, standards, and instructions
amended Apr. 16, 1936, ch . 229, § 10, 49 Stat 1212, re- herein provided for, but such change shall not
lated to schedules and rates of water carriers. in
foreign commerce . See section 901 et seq . of this Appen- instructions be enforced until they shall have
dix .
been filed with and approved by the Secretary
§ 26. Safety appliances, methods, and systems
of Transportation : And provided further, That
the Secretary of Transportation may on his
(a) "Railroad" defined
own motion, upon good cause shown, revise,
The term "railroad" as used in this section amend,, or m
the hi under i and inshall have
431 the same meaning as when used in structions prescribed
scribed by him
this
the Federal Railroad Safety Act of 1970 (45 tion, and as revised, amended, or modified they
q.) .
U
shall be obligatory upon the railroad after a
(b) Order to install systems, etc .; modification; negli- copy thereof shall have been served as above
provided .
gence of railroad
The Secretary of Transportation may, after (d) Inspection by Secretary of Transportation ; perinvestigation, if found necessary in the public
sonnel
interest, order any railroad within a time speciThe Secretary of Transportation is authorfied in the order, to install the block signal
system, interlocking, automatic train stop, train ized to inspect and test any systems, devices,
control, and/or cab-signal devices, and/or other and appliances referred to in this section used
similar appliances, methods, and systems in- by any such railroad and to determine whether
tended to promote the safety of railroad oper- such systems, devices, and appliances are in
ation, which comply with specifications and re- proper condition to operate and provide adequirements prescribed by the Secretary of quate safety . For these purposes the Secretary
Transportation, upon the whole or any part of of Transportation is authorized to employ perits railroad such order to be issued and pub- sons familiar with the subject . Such persons
lished a reasonable time (as determined by the shall be in the classified service and shall be apSecretary of Transportation) in advance of the pointed after competitive examination accorddate for its fulfillment: Provided, That block ing to the law and the rules of the Director of
signal systems, interlocking, automatic train the Office of Personnel Management governing
stop, train control, and cab-signal devices in use _ the classified service . No person interested,
on August 26, 1937, or such systems or devices either directly or indirectly, in any patented arhereinafter installed may not be discontinued ticle required to be used on or in connection
or materially modified by railroads without the with any of such systems, devices, and appliapproval of the Secretary of Transportation : ances or who has any financial interest in any
railroad or in any concern dealing in railway
Provided further, That a railroad shall not be
held to be negligent because of its failure to in- supplies shall be used for such purpose .

§ *26

TITLE 49, APPENDIX-TRANSPORTATION

Page 568

any violations of this section coming to its
(e) Unlawful use of system, etc.
It shall be unlawful for any railroad to use or knowledge . For purposes of this section, an act
permit to be used on its line any system, device, by an individual that causes a railroad to be in
or appliance covered by this section unless such violation of any of the provisions of this secapparatus, with its controlling and operating tion, or to fail to comply with any of the rules,
appurtenances, is in proper condition and safe regulations, orders, standards, or instructions
to operate in the service to which . it is put, so made, prescribed, or approved under this secthat the same may be used without unneces- tion, shall be, deemed ..a violation, and an indisary peril to life and limb, and unless such ap- vidual shall be deemed not to have committed a
paratus, with its controlling and operating ap- willful violation where such individual -has
purtenances, has been inspected from time to acted pursuant to the direct order of a-railroad
time in accordance with the provisions of this official or supervisor under protest_communisection and is able to meet the requirements of cated to the supervisor . Such individual shall
such test or tests as may be prescribed in the have the right to document such protest .
rules and regulations provided for in this sec- (Feb . 4, 1887, ch . 104, pt. I, 125, formerly § 26,
tion.
as added Feb . 28, 1920, ch. 91, 1441, 41 Stat .
(f) Report of failure of system, etc ., and accidents
498, amended Aug. 9, 1935, ch. 498, § 1, 49 Stat .
Each railroad shall report to the Secretary of 543 ; Aug. 26, 1937, ch . 818, 50 Stat. 835, renumTransportation in such manner and to such bered Sept . 18, 1940, ch. 722, title I, § 14(b), 54
extent as may be required by the Secretary of Stat . 919, and amended Pub . L . 94-348, § 3(d),
Transportation, failures of such systems, de- 90 Stat. 818 ; Nov . 2, 1978, Pub. L . 95-574, § 7(d),
vices, or appliances to indicate or function as 92 Stat . 2461 ; 1978 Reorg. Plan No. 2, 1102, eff.
intended; and in case of accident resulting from Jan . 1, 1979, 43 F.R . 36037, 92 Stat. 3783; Oct.
failure of any such system, device, or appliance 10, 1980, Pub . L. 96-423, § 8(d), 94 Stat. 1814 ;
to indicate or function as intended, and result- Jan . 12, 1983, Pub . L. 97-449, § 7(b), 96 Stat.
ing in injury to person or property which is re- 2444; June 22, 1988, Pub . L . 100-342, § 17, 102
portable under the rules of the Secretary of Stat . 635 .)
Transportation, a statement forthwith must be
REFERENCES IN TExT
made in writing of the fact of such accident by
the railroad owning or maintaining such . The Federal Railroad Safety Act of 1970, referred to
system, device, or appliance to the Secretary of in subsec . (a), is title II of Pub. L. 91-458, Oct . 16, 1970,
Transportation ; whereupon the facts concern- 84 Stat . 971, as amended, which is classified generally
ing such accident shall be subject to investiga- to subchapter II (§ 431 et seq .) of chapter 13 of Title
tion as provided in sections 40 to 42 of title 45 . 45, Railroads . For complete classification of this Act to
the Code, see Short Title note set out under section
(g) Repealed. Pub . L. 97-449, § 7(b), Jan . 12, 1983, 96 421 of Title 45 and Tables .
Stat. 2444
CODIFICATION
(h) Penalties ; enforcement
In subsec. (h), "sections 3711 and 3716-3718 of title
Any person (including a railroad and any
manager, supervisor, official, or other employee 31" was substituted for "the Federal Claims Collection
. L. 97-258, § 4(b),
or agent of a railroad) violating any provision Act of. 1966"
first section of which
13, 1982,on96authority
Stat . 1067,ofthePub
of this section, or failing to comply with any of Sept
enacted Title 31,
97-45
a Money and Finance, and Pub . L.
the rules, regulations, orders, standards, or in- 97-452, § 3(b), Jan. 12, 1983, 96 Stat . 2479.
structions made, prescribed, or approved hereunder shall be liable to a penalty in such
AmENDMENTS
amount, not less than $250 nor more than
1988-Subset. (a) . Pub . L. 100-342, § 17(1), amended
$10,000 per violation (with each day of a viola- subsec
. (a) generally . Prior to amendment, subsec. (a)
tion constituting a separate violation), or where read as follows : "The term 'carrier' as used in this seca grossly negligent violation or a pattern of re- tion includes any carrier by railroad subject to this
peated violations has created an imminent chapter (including any terminal or station company),
hazard of death or injury to persons, or has and any receiver or any other individual or body, judicaused death or injury, not to exceed $20,000, cial or otherwise, when in the possession of the busias the Secretary of Transportation deems rea- ness of a carrier subject to this section : Provided, howsonable, except that a penalty may be assessed ever, That the term 'carrier' shall not include any
against an individual only for a willful viola- street, interurban, or suburban electric railway unless
. Such penalty shall be assessed by the Sec- such railway is operated as a part of a general steamtion
of Transportation and, where compro- railroad
railroad
system of transportation, but shall not exretaryis not reached by the Secretary under sec- crude any part of a general steam-railroad
of
y any other
tr portation now or hereafter operated by
tions 3711 and 3716-3718 of title 31, recovered motive power ."
in a suit or suits to be brought by the United
Subsec. (b) . Pub . L. 100-342, 117(2), (8), substituted
States attorney for the judicial district in "Secretary of Transportation" for "Commission" in 4
which the violation occurred, in which the indi- places and substituted "order any railroad" for "order
vidual defendant resides, or in which the de- any carrier", "modified by railroads" for "modified by
and "That a railroad" for "That a carrier" .
fendant has its principal executive office . It carriers",
Subsec.
(c). Pub. L . 100-342, § 17(3), (8), substituted
shall
be the
such attorneys
bring
such suits
uponduty
duly of
verified
informationtobeing
"Each railroad" for "Each carrier by railroad", substisuch
"car
sited "
of
"Commiswith them showing such violations sion" in 6 places, and substituted "railro"railroad" for car
lodged occurred ; and it shall be the duty of the er" in 6 places .
Secretary of Transportation to lodge with the
Subsec. (d) . Pub . L. 100-342, § 17(4), (8), substituted
proper United States attorneys information of "Secretary of Transportation" for "Commission" in 2

Page 569

TITLE 49, APPENDIX-TRANSPORTATION

§ 26a

places and substituted "railroad" for "carrier" in 2
RAILROAD SAFETY VIOLATIONS; MINIMUM AMOUNTS
places.
FOR COMPROMISED PENALTIES
Subsec. (e) . Pub . L. 100-342, $17(5), substituted
Penalties assessed under this section not to be com"railroad" for "carrier" .
secby the Secretary for less than $250, see secSubsec. (f) . Pub . L. 100-342, § 17(6), (8), substituted promised
"Secretary of Transportation" for "Commission" in 4 tion 3711 of Title 31, Money and Finance .
places and substituted "railroad" for "carrier" in 2
CROSS REFERENCES
places .
Civil-service laws, generally, see Title 5, Government
Subsec. (h). Pub . L. 100-342, § 17(7), (8), substituted
new first sentence for former first sentence which Organization and Employees .
read as follows: "Any carrier which violates any proviSECTION REFERRED TO IN OTHER SECTIONS
sion of this section, or which fails to comply with any
of the orders, rules, regulations, standards, or instrucThis section is referred to in section 1655 of this Aptions made, prescribed, or approved hereunder shall be pendix ; title 31 section 3711 ; title 45 section 715.
liable to a penalty of not less than $250 and not more
than $2,500 for each such violation and not less than § 26a, Repealed. Pub . L. 95-473, § 4(b), (c), Oct . 17,
$250 and not more than $2,500 for each and every day
1978, 92 Stat . 1466, 1470
such violation, refusal, or neglect continues, to be asSection repealed subject to an exception related to
sessed by the Secretary of Transportation and recovered in a suit or suits to be brought by the United transportation of oil by pipeline. For disposition of
States attorney in the district court of the United this section in revised Title 49, Transportation, see
States for the judicial district in which such violation Table at beginning of Title 49 . See, also, notes followoccurred or in which the defendant has its principal ing Table .
executive office .", substituted "duty of the Secretary
Prior to repeal, section read as follows :
of Transportation" for "duty of the Commission", and
inserted at end "For purposes of this section, an act by § 26a . State or subdivision income tax withholding on roman individual that causes a railroad to be in violation
pensation paid to interstate railroad, express company,
of any of the provisions of this section, or to fail to
or sleeping car company employees
comply with any of the rules, regulations, orders,
standards, or instructions made, prescribed, or ap- (a) Withholding where employee earns more than 60 per
centum of compensation paid by carrier to him or where
proved under this section, shall be deemed a violation,
employee resides ; filing of information return by carrier
and an individual shall be deemed not to have commitNo part of the compensation paid by any railroad,
ted a willful violation where such individual has acted
pursuant to the direct order of a railroad official or su- express company, or sleeping car company, subject to
pervisor under protest communicated to the supervi- the provisions of this chapter, to an employee (1) who
sor. Such individual shall have the right to document performs his regularly assigned duties as such an employee on a locomotive, car, or other trackborne vehisuch protest."
1983-Subsec. (g) . Pub. L . 97-449 struck out subsec . cle in more than one State, or (2) who is engaged prin(g) which provided that the Secretary of Transporta- cipally in maintaining roadways, signals, communication had the duty to see that the requirements of this tions, and structures or in operating motortrucks out
section were observed by carriers . See section 501(b) of of railroad terminals in more than one State, shall be
withheld for income tax purposes pursuant to the laws
Title 49, Transportation.
1980-Subsec . (h) . Pub. L. 96-423 substituted "for of any State or subdivision thereof other than the
the judicial district in which such violation occurred State or subdivision wherein more than 50 per centum
or in which the defendant has its principal executive of the compensation paid by the carrier to such emoffice" for "having jurisdiction in the locality where ployee is earned: Provided, however, That if the employee did not earn more than 50 per centum of his
such violation shall have been committed" .
1978-Subsec. (h) . Pub. L. 95-574 provided that pen- compensation from said carrier in any one State or
alties under this section be assessed by the Secretary any subdivision thereof during the preceding calendar
year, then withholding shall be required only for the
of Transportation.
1976-Subsec . (h) . Pub. L . 94-348 substituted "not State or subdivision of the employee's residence, as;
less than $250 and not more than $2,500 for each vio- shown on the employment records of any such carrier
lation and not less than $250 and not more than nor shall any such carrier file any information return
or other report for income tax purposes with respect
$2,500" for "$100 for each such violation and $100" .
1937-Act Aug . 26, 1937, divided section into subsec- to such compensation with any State or subdivision
thereof other than such State or subdivision of resitions and amended section generally .
1935-Act Aug . 9, 1935, substituted "this part", dence and the State or subdivision for which the withwhich has been translated as "this chapter", for "this holding of such tax has been required under this subAct", meaning act Feb . 4, 1887, known as the Inter- section .
state Commerce Act .
(b) State or subdivision where employee deemed to have
earned more than 50 per centum of compensation
EFFEcTIvE DATE OF 1980 AMENDMENT
(1) For the purposes of subsection (a)(1) of this seceffective
Amendment by Pub . L. 96-423
. 96-423,
set Oct.
out a10,note tion, an employee shall be deemed to have earned
1980, see section 17(a) of Pub . L
more than 50 per centum of his compensation in any
under section 431 of Title 45, Railroads.
State or subdivision thereof in which the mileage traveled by him in such State or subdivision is more than
TRANSFER OF FUNCTIONS
50 per centum of the total mileage traveled by him in
"Director of the Office of Personnel Management" the calendar year while so employed .
was substituted for "Civil Service Commission" in
(2) For the purposes of subsection (a)(2) of this secsubsec. (d) pursuant to Reorg . Plan No . 2 of 1978, tion, an employee shall be deemed to have earned
1102, 43 P .R. 36037, 92 Stat . 3783, set out under sec- more than 50 per centum of his compensation in any
tion 1101 of Title 5, Government Organization and State or subdivision thereof in which the time worked
Employees, which transferred all functions vested by by him in such State or subdivision is more than 50
statute in the United States Civil Service Commission per centum of the total time worked by him in the calto the Director of the Office of Personnel Manage- endar year while so employed .
ment (except as otherwise specified), effective Jan . 1,
1979, as provided by section 1-102 of Ex . Ord . No . (c) "State" and "compensation" defined
For the purposes of this section the term "State"
12107, Dec. 28, 1978, 44 F.R . 1055, set out under secalso means the District of Columbia ; and the term
tion 1101 of Title 5 .

9 26b

TITLE 49, APPENDIX-TRANSPORTATION

"compensation" shall mean all moneys received for
services rendered by an employee, as defined in subsection (a) of this section, in the performance of his
duties and shall include wages and salary .
(Feb. 4, 1887, ch . 104, pt. I, § 26, as added Dec . 23, 1970,
Pub . L. 91-569, § 1, 84 Stat . 1499 .)
9 26b. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17,
1978, 92 Stat . 1466, 1470; Pub . L. 96-258, § 3(b),
June 3, 1980, 94 Stat . 427
Section repealed subject to an exception related to
transportation of oil by pipeline . Section 804 of Pub.
L. 95-620, which amended par. (4) of this section, effective 180 days after Nov . 9, 1978, subsequent to the
repeal of this section by Pub. L . 95-473, was repealed
by Pub . L. 96-258 . For disposition of this section in revised Title 49, Transportation, see Table at beginning
of Title 49. See, also, notes following Table .
Prior to repeal, section read as follows :
it 26b. Office of Rail Public Counsel
(1) Establishment; statutory provisions applicable
There shall be established, within 60 days after February 5, 1976, a new independent office affiliated with
the Commission to be known as the Office of Rail
Public Counsel . The Office of Rail Public . Counsel
shall function continuously pursuant to this section
and other applicable Federal laws.
(2) Director, appointment ; term of office ; responsibilities;
compensation
(a) The Office of Rail Public Counsel shall be administered by a Director . The Director shall be appointed by the President, by and with the advice and
consent of the Senate .
(b) The term of office of the Director shall be 4
years . He shall be responsible for the discharge of the
functions and duties of the Office of Rail Public Counsel. He shall be appointed and compensated, without
regard to the provisions of title 5 governing appointments in the competitive service, classification, and
General Schedule pay rates, at a rate not in excess of
the maximum rate for GS-18 of the General Schedule
under section 5332 of such title .

Page 570

(c) may seek judicial review of any Commission
action on any matter involving a common carrier by
railroad subject to this chapter, to the extent such
review is authorized by law for any person and on
the same basis ;
(d) shall solicit, study, evaluate, and present before
the Commission, in any proceeding, formal or informal, the views of those communities and users of rail
service affected by proceedings initiated by or pending before the Commission, whenever the Director
determines, for whatever reason (such as size or location), that such community or user of rail service
might not otherwise be adequately represented
before the Commission in the course of such proceedings ;
(e) shall evaluate and represent, before the Commission and before other Federal agencies when
their policies and activities significantly affect rail
transportation matters subject to the jurisdiction of
the Commission,, and shall by other means assist the
constructive representation of, the public interest in
safe, efficient, reliable, and economical rail transportation sa pe se and
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