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
Page 521

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.Sec. Chap. Sec.

1 .Interstate Commerce Act, Part I ; Gen.33. Public Airports	2401

eral Provisions . and Railroad and34. Motor Carrier Safety	2501

Pipe Line Carriers	1 35.

Commercial Space Launch	2601

2.Legislation Supplementary to "Inter- 36. Commercial Motor Vehicle Safety	2701

state Commerce Act" [Repealed,

Transferred, or Omitted]	41 CHAPTER I-INTERSTATE COMMERCE ACT,

3.

Termination of Federal Control [Re- PART I; GENERAL PROVISIONS AND RAILpealed or Transferred]	71

ROAD AND PIPE LINE CARRIERS

4. Bills of Lading	 81

5.Inland Waterways Transportation	141 Sec6.

Air Commerce	 171

1 to 23, 25 . Repealed.

26.

Safety. appliances, methods, and systems.

7 .

Coordination of Interstate Railroad

(a) "Railroad" defined.

Transportation [Repealed]	250

(b) Order to install systems, etc., modifi8. Interstate 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otor Carriers [Repealed or-Trans- (c) Filing report on rules, standards, and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.

9.

Civil Aeronautics [Repealed, Omitted, (d) Inspection by Secretary-of Transporor Transferred]	401 tation ; personnel .

10.Training of Civil Aircraft Pilots

(e) Unlawful use of system, etc .

[Omitted or Repealed]	751

(f) Report of failure of system, etc ., and

11 .

Seizure and Forfeiture of Carriers

accidents .

Transporting, etc., Contraband Arti

(g) P epa ties ;

(h) enlenforcement.

cles	 781 26a to 27 . Repealed .

12 .

Interstate Commerce Act, Part III;

Water Carriers [Repealed] :.. . :	901 § 1 . Repealed. Pub. L . 95-473, § 4(b), (c), Oct. 17, 1978,

13.Interstate Commerce Act, Part IV ; 92 Stat. 1466, 1470; Pub. L. 964258, § 3(b), June 3,

Freight Forwarders [Repealed]	10011980, 94 Stat . 427-

14. Federal Aid for Public Airport Deve1-

opment [Repealed or Transferred] ... . 1101

Section repealed subject to an exception related to

15. International Aviation Facilities	1151

transportation of oil by pipeline . Section 402 of Pub.

L. 95-607, which amended par . (14) of this section by

16.Development of Commercial Aircraft adding subdiv. (b) and redesignating existing subdiv .

[Omitted]	 1181 (b) as (c) subsequent to the repeal of this . section by

17. Medals of Honor for Acts7of Heroism:. . 1201 Pub. L. 95-473, was repealed by Pub. L 96-258. For dis18.

Airways Modernization [Repealed] 	1211 position of this section in revised Title ::49, Transporta19.

Interstate Commerce Act, Part V ;

tion, see Table_ at beginning of Title 49. See, also, notes

Loan Guaranties [Repealed]	1231

following Table .

20.Federal Aviation- Program	1301

Prior to repeal, section read as follows :

21. Urban Mass.Transportation	1601

22.High-Speed Ground Transportation

1 . Regulation in general ; car service; alteration of line

[Omitted or Repealed]	1631 (1) Carriers subject to regulation

23.Department- of Transportation	1651

The provisions of this chapter shall apply to

24. Natural Gas Pipeline Safety	1671 common carriers engaged in25.

Aviation Facilities Expansion and Im- (a) The transportation of` passengers or property

provement	 1701 wholly by railroad, or partly by railroad and partly by

26.

Hazardous Materials Transportation water when both are used under a common control,

Control [Repealed]	1761

management, or arrangement . for a continuous car27.

Hazardous Materials Transportation . . . .: 1801•

riage or shipment; or

National Transportation Safety Beard . 1901

(b) The transportation of oil . or other commodity,

28.

2001

except water and except natural or artificial gas, by

29.Hazardous

Transportation

Pipeline

Safety

Safety	pipe line, or partly by pipe line and partly by - railroad

30.

Abatement of Aviation Noise	2101 or by water; or

31 .

Airport and Airway Improvement	2201 (c) Repealed. June 19, 1934, ch . 652, title VI,

32.

Commercial Motor Vehicles	2301 $ 602(b), 48 Stat . 1102;
§ 1

TITLE 49, APPENDIX-TRANSPORTATION Page 522

from one State or Territory of the United States, or (4) Duty to furnish transportation and establish through

the District of Columbia, to any other State or Terri- routes ; division of joint rates

tory of the United States, or the District of Columbia, It shall be the duty of every common carrier subject

or from one place in a Territory to another place in to this chapter to provide and furnish transportation

the same Territory, or from any place in the United upon reasonable request therefor, and to establish reaStates through a foreign country to any other place in sonable through routes with other such carriers, and

the United States, or from or to any place in the just and reasonable rates, fares, charges, and classifiUnited States to or from a foreign country, but only cations applicable thereto ; and it shall be the duty of

insofar as such transportation takes place within the common carriers by railroad subject to this chapter to

United States.

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 regula-

(a) To the transportation of passengers or property, tions with respect to their operation, and providing for

or to the receiving, delivering; storage, or handling of reasonable compensation to those entitled thereto ;

property, wholly within one State and not shipped to andein case of joint rates, fares, or charges, to estabor 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

ed in this chapter;

participating carriers .

(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 (a) All charges made for any service rendered or to

by a carrier by water where such transportation would be rendered in- the transportation of passengers or

not be subject to the provisions of this chapter except property as • aforesaid, 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 this subdivision shall not apply to common

for services within the switching, drayage, lighterage, carriers by 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 Definitions

dered in the transportation of persons or property by

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 desig- to 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 de- rier 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 han- shall be found to be unjust or unreasonable, or not

dling of property transported. The term "person" as 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

(b) For the purposes of sections 5, 12(1), 20, that a carrier has market dominance over a service

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 an- mum. Nothing iri this paragraph shall prohibit a rate

other person or persons), such reference shall be con- increase from a level which reduces the going concern

strued to include actual as well as legal control, value of the proponent carrier to a level which conwhether 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

zation or operation, through or by common directors, sentence, a rate increase which does not raise a rate

officers, or stockholders, a voting trust or trusts, a above the incremental costs (as determined through

holding or investment company or companies, or formulas prescribed by the Commission) of rendering

through or by any other direct or indirect means ; and the service to which such rate applies shall be preto include the power to exercise control .

sumed to be just and reasonable .

i

Y
Page 523

TITLE 49, APPENDIX-TRANSPORTATION § 1

(c) As used in this chapter, the terms- fruit ; to employees on sleeping cars, express cars, and

(i) "market dominance" refers to an absence of ef- to 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 determina- ed, 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

(5%) Exchange of services

of general epidemic, pestilence, or other calamitous

Nothing in this Act shall be construed to prevent visitation : And provided further, That this provision

any common carrier subject to this Act from entering shall not be construed to prohibit the privilege of

into or operating under any contract with any tele- passes or franks, or the exchange thereof with each

phone, telegraph, or cable company, for the exchange other, for the officers, agents, employees, and their

of their services.

families of such telegraph, telephone, and cable lines,

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 reg- ed for offenses in sections 41- to .43 of this Appendix ..

ulations relating to such charges shall be established,

in such a manner as to fulfill the national needs with (8) Transportation of commodity manufactured or produced

respect to (a) freight car utilization and distribution,

by railroad :forbidden

and (b) maintenance of an adequate freight car supply It shall be unlawful for any railroad company to

available for transportation of property . transport from any State, Territory, : or the District of

(7) Free transportation for passengers .prohibited; exceptions ;

Columbia, to any other State, Territory, or the Dispenalty

trict of Columbia, or to any foreign country, any artio common carrier subject - to the provisions of this

cle or commodity, other than timber and the manufacN

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

authorized and designated to represent employees in Any common carrier subject to the provisions of this

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 traftraveling secretaries of railroad Young Men'ss Chris- fic for transportation, shall construct, maintain, and

tian 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

Homes for Disabled Volunteer Soldiers, and of Sol- the movement of such traffic to the .best of its ability

diers' 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 f

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

and the Commission may make an order, as provided

service ; procedures applicable

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, es-

(10) "Car service" defined

tablish reasonable rules, regulations, and practices

The term "car service" in this chapter shall include

with respect to car service by common carriers by railthe use, control, supply, movement, distribution, ex- road subject to this chapter, including (I) the compenchange, interchange, and return of locomotives, cars,

sation to be paid for the use of any locomotive, freight

and other vehicles used in the transportation of propcar,

tract,

other vehicle, or

arrangement

the ent

for

terms of

use

any any

erty, including special types of equipment, and the locomotive

other the carrier

of

supply of trains, by any carrier by railroad subject to

ocomotive is

s

us

used

r

whether

n

anthis chapter .by which it is used

vehicle

whether

or

not owned by another carrier, shipper, or third party), and (ill) the

(11) Duty to furnish car service ; rules and regulations

penalties or other sanctions for nonobservance of such

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 adequaservice is prohibited and declared to be unlawful .

cy of the national freight car supply. Such compensation 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 of- adequate. 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 provi- equipment, 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 transports

i
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

(15) Powers of Commission in case of emergency

cause shown for an additional designated period not

Whenever the Commission is of opinion that short- to exceed 180 days .

age of equipment, congestion of traffic, or other emer- (B) No such directions shall be issued that would

gency requiring immediate action exists in any section cause a carrier to operate in violation of the Federal

of the country, the Commission shall have, and it is Railroad Safety Act of 1970 [45 U .S .C. 431 et seq .] or

given, authority, either upon complaint or upon its

that would substantially impair the ability of the

own initiative without complaint, at once, if it so carrier so directed to serve adequately its own paorders, without answer or other formal pleading by trons or to meet its outstanding common carrier obthe interested carrier or carriers, and with or without ligations .

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 sus- such 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 serviceother 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 own- previously 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 disagree- rate of pay, rules and working conditions, and all

ment, as the Commission may after subsequent hear- employee 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 pref- carrier, 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 Com- ble 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

(16) Rerouting of traffic on failure of initial carrier to serve be prescribed by the Commission and shall be subpublic mitted to and subject to audit by the Commission .

(a) Whenever the Commission is of opinion that any The Commission shall certify promptly to the Secrecarrier by railroad subject to this chapter is for any tary of the Treasury the amount of payment to be

reason unable to transport the traffic offered it so as made to said carrier or carriers under the provisions

properly to serve the public, it may, upon the same of this paragraph . Payments required to be made to

procedure as provided in paragraph (15) of this sec- a carrier under the provisions of this paragraph

tion, make such just and reasonable directions with re- shall be made by the Secretary of the Treasury from

spect to the handling, routing, and movement of the funds hereby authorized to be appropriated in such

traffic of such carrier and its distribution over other amounts as may be necessary for the purpose of carlines of roads, as in the opinion of the Commission will rying out the provisions hereof .

best promote the service in the interest of the public

and the commerce of the people, and upon such terms (17) Directions of Commission as to car service ; disobedience;

as between the carriers as they may agree upon, or, in

rights

o Commission

the event of their disagreement, as the Commission (a) The directions of the Commission as to car servmay after subsequent hearing find to be just and rea- ice and to the matters referred to in paragraphs (15)

sonable.

and (16) of this section may be made through and by

(b) Whenever any carrier by railroad is unable to such agents or agencies as the Commission shall desigtransport the traffic offered it because- nate and appoint for that purpose . It shall be the duty

(1) its cash position makes its continuing operation of all carriers by railroad subject to this chapter, and

impossible ;

of their officers; agents, and employees, to obey strict-

(2) it has been ordered to discontinue any service ly and conform promptly to such orders or directions

by a court; or

of the Commission, and in case of failure or refusal on

(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 carrisection;

er, receiver, or trustee shall be liable to a penalty of
§ 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 continu- prescribe . 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

this chapter shall ii

(ii) issue such a certificate with modifications in

State, in the exercise such form and subject to such terms and conditions

of its

its

or

police power,

the

to

right

require

a

just and reasonable freight and passenger service for

as are necessary in the public interest; or

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

or indirectly, any money, property, or thing of value,

provision of adequate, efficient, and safe facilities for

or bribe in any other form whatsoever, to any person the performance of such carrier's obligations under

acting for or employed by any carrier by railroad sub- this chapter. No authorization shall be made unless

ject to this part with intent to influence his decision the Commission finds that the expense thereof will

or action, or because of his decision or action, with re- not 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 indirectly, any money, property, or thing of value, or

sion, enter into. contracts, agreements, or other arbribe in any other form whatsoever, .with intent to be

rangements for the point (joint) ownership or joint

influenced thereby in his decision or action, or because use of spur, industrial, . team, switching; or -side tracks

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 subpara- ing, 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 imprisonment.

system of rail transportation .

(18) Extension or addition of lines; certificate required ; pro-

(e) Any construction or operation which is contrary

cedures applicable to application for certificate; petition

to any provision of this - paragraph, of any regulations

or initiative of Commission ; agreements for ownership-or

promulgated under this paragraph, or of any terms

use of spur, etc ., tracks; limitations on authority of Comand conditions of an applicable certificate, may be enmission; injunctionsi and penalty for violations

joined by an appropriate district court of the United

(a) No carrier by railroad subject to this chapter States in a civil action commenced and maintained by

shall- the United States, the Commission, . or the . attorney

(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 viosuch additional line ; or

(iii) engage in transportation over, or by means of, lation of this paragraph or of

: the conditions of a cerany such extended or additional line of railroad,

tificate issued under this paragraph.

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 re- May 29, 1917, ch. 23, 40 Stat . 101 ; Feb. 28, 1920, ch . 91,

quire or will be enhanced by the construction and opH400-403, -400-403, 41 Stat. 474-479 ; June 19, 1934, ch. 652,

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,

the Commission shall (A). send a .copy of the applica-.Stat. 543 ; Sept . 18, ..1 . h_ 722,_ I, §), .( 4

tion to the chief executive officer of each State that 4, 54- Stat. . 899-901 ; . June 24, 1948' . ch. 622, 62 .Stat_602; ' ,

would be directly affected by the construction or oper- Aug. 2, 1949, ch. 379 ; § 1, 63 Stat. 485 June 27, 1952,

ation of such extended or additional line, (B) send an cit 477,. title IV, . § 402(g),. .66 Stat._277 ; .Aug. - 12,1958,

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 af- 89-430, § 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 recom- § la. Repealed . Pub. L. 95-473, § 4(b), (c), Oct. 17,

mend to the Commission that it approve, disapprove,

1978, 92 Stat. 1466, 1470

or take any other specified action with respect to such

application.

Section repealed subject to an exception related to

(b) The Commission shall establish, and may from

time to time amend, rules and regulations (as to heartransportation of oil by pipeline. For disposition of

ings and other matters) to govern applications for, and

this section in revised Title 49, Transportation, see

the issuance of, any certificate required by subdivision Table at beginning of Title 49 . See, also, notes follow-

(a) . An application for such a certificate shall be sub- ing Table.

mitted to the Commission in such form and mannerPrior 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

(1) Authorization pursuant to certification by Commission ;

ordered, the Commission shall issue such a certificate,

application and notice of intent required in accordance

in accordance with this section, at the end of such 60-

with rules and regulations ; statutory provisions applicaday period. If such an investigation is ordered, the

ble; limitation on authority of Commission

Commission shall order a postponement, in whole or

No carrier by railroad subject to this chapter shall

in part, in the proposed effective date of the abandonabandon all or any portion of any of its lines of railment or discontinuance. Such postponement shall be

road (hereafter in this section referred to as "abanfor such reasonable period of time as is necessary to

donment") and no such carrier shall discontinue the

complete such investigation. Such an investigation

operation of all rail service over all or any portion of

may include, but need not be limited to, public hearany such line (hereinafter referred to as "discontinu- ings at any location reasonably adjacent to the line of

ance"), unless such abandonment or discontinuance is

railroad involved in the abandonment or

regulations in and covered by a certificate which is ante application, pursuant to rules and reglations of

issued by the Commission and which declares that the

the Commission . Such a hearing may be held upon the

present or future public convenience and necessity rerequest of any interested party or upon the Commisquire 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 abandon- prior to the proposed effective date of such abandon-

ment or discontinuance

ment or discontinuance, and shall be in accordance

with such rules and

The Commission shall, upon an order with respect to

content,, and documentation as regulations

a

the Commission manner, each application for a certificate of abandonment or may

from time to time prescribe. Abandonments and dis- discontinuancecontinuances shall be, :governed by the provisions of

(a) issue such certificate in the form requested by

this section or by the provisions of any other applica- the applicant if it finds that such abandonment or

ble Federal statute, notwithstanding any inconsistent discontinuance is consistent with the public convenor contrary - provision in any State law or constitution, ience and necessity . In determining whether the proor any decision, order, or procedure of any State ad- posed abandonment is consistent with the public

ministrative or judicial body . The authority granted to convenience and necessity, the Commission shall

the Commission under this section shall not apply to consider whether there will be a serious adverse

(a) abandonment or discontinuance with respect to impact on rural and community development by

spur, industrial, team switching, or side tracks if such such abandonment or discontinuance ;

tracks are located entirely within one State, or (b) any (b) issue such certificate with modifications in

street, suburban, or interurban electric railway which such form and subject to such terms and conditions

is not operated as part - of a general system of rail as are required, in the judgment of the Commission,

transportation . by the public convenience and ,necessity; or

(2) Affidavit accompanying notice of intent; contents of affi-

(c) refuse to issue such certificate .

davit and notice of intent

Each such certificate which is issued by the Commis-

(a) Whenever a carrier submits to the Commission a

sion shall contain provisions for the protection of the

notice of intent to abandon or discontinue, pursuant

interests of employees . Such provisions shall be at

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 discontinu- ance may take effect, in accordance with such certifiance, (ii) has been posted in each terminal and station 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) Each carrier by railroad subject to this chapter

standable summary of the carrier's application for a shall, within 180 days after the date of promulgation

certificate of abandonment or discontinuance, togeth- of regulations by the Commission pursuant to this secer with the reasons therefor, and (ii) a statement indi- tion, 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, system operated, directly or indirectly, by such carrier .

or take any other specified action with respect to such 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

determining what disposition to make of such applica- to the Commission and publish, in accordance with

tion . 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 inpending prior to February 5, 1976, or prior to promulgaits discretion) of such line of railroad during .the 12-

tion of regulations by Commission

month period preceding the submission of an-appli- Petitions 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 certifi-

Any 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

mentgeneral 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

further finds that-

(10) Further findings by Commission of suitability of aban-

(i) a financially responsible person (including a doned or discontinued properties for use for other public

government entity) has offered financial assistance purposes ; limitations on disposal subsequent to finding

(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 propwould- erties 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 modi- service 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 of- such service was provided were abandoned : Such exfering financial assistance in accordance with subdivi- penses shall include but are not limited to alt -cash

sion (a) of this paragraph, its : most recent reports . on 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 contin- penditures, (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 reasonable return on rail properties rail service and other effects of applicable Federal

exceed operating revenues and State income taxes.

Whenever the Commission finds, under paragraph (b) The term "reasonable return" shall, in the case

(6)(a) of this section, that an offer of financial assist- of a railroad not in . reorganization, be the cost of

ance has been made, the Commission shall determine capital to such railroad (as determined by the Comthe extent to which the avoidable cost of providing mission), and, in the case of a railroad in reorganizarail service plus a reasonable return on the value of

tion, shall be the mean cost of capital of railroads
Page 529

TITLE 49, APPENDIX-TRANSPORTATION § 3

not in reorganization, as determined by the Commis- (2) Payment of freight as prerequisite to delivery

sion. No carrier by railroad and no express company sub-

(Feb . 4, 1887, ch . 104, pt . I, § la, as added and amended ject to the provisions of this chapter shall deliver or

Feb. 5, 1976, Pub. L. 94-210, title VIII, $1802, 809(c), relinquish possession at destination of any freight or

90 Stat. 127, 146; Oct. 19, 1976, Pub . L. 94-555, title II, express shipment transported by it until all tariff

1 218, 90 Stat . 2628 .)

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

ion

related to of this paragraph shall not be construeded to prohibit

transportation rs oil by pipeline . For disposition 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 delivIf any common carrier subject to the provisions of er property transported by such carriers to a consignthis 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

chapter, than it charges, demands, collects, or receives to him, if the consignee (a) is an agent only and has no

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

portation of a like kind of traffic under substantially in writing of the fact of such agency and absence of

similar circumstances and conditions, such common beneficial title, and, in the case of a shipment reconcarrier shall be deemed guilty of unjust discrimina- signed or diverted to a point other than that specified

tion, which is prohibited and declared to be unlawful. in the original bill of lading, has also notified the de-

(Feb. 4, 1887, ch . 104, pt. I, 12, 24 Stat. 379 ; Feb. 28,

livering carrier in writing of the name and address of

1920, ch. 91, § 404, 41 Stat . 479 ; June 19, 1934, ch. 652,

the beneficial owner of the property . In such cases the

1 602(b), 48 Stat. 1102; Aug. 9, 1935, ch. 498, § 1, 49

shipper or consignor, or, in the case of a shipment so

Stat. 543.)

reconsigned or diverted, the beneficial owner, shall be

liable for such additional charges, irrespective of any

§ 3 . Repealed . Pub. L. 95-473, § 4(b), (c), Oct. 17, 1978,

provisions to the contrary in the bill of lading or in

92 Stat. 1466, 1470

the contract under which the shipment was made. An

action for the enforcement of such liability may be

Section repealed subject to an exception related to

begun within the period provided in paragraph (3) of

transportation of oil by pipeline . For disposition of section 16 of this Appendix or before the expiration of

this section in revised Title 49, Transportation, see six months after final judgment against the carrier in

Table at beginning of Title 49

. See, also, notes follow- an action against the consignee begun within the

ing Table.

period provided in paragraph (3) of section 16 of this

Prior to repeal, section read as follows :

Appendix. If the consignee has given to the carrier erroneous information as to who the beneficial owner is,

ii 3. Preferences; interchange of traffic ; terminal facilities

such consignee shall himself be liable for such additional charges, notwithstanding the foregoing provi-

(1) Undue preferences or prejudices prohibited sions of this paragraph . An action for the enforcement

It shall be unlawful for any common carrier subject of such liability may be begun within the period proto the provisions of this chapter to make, give, or vided in paragraph (3) of section 16 of this Appendix

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 benetion, association, locality, port, port district, gateway, ficial owner named by the consignee begun within the

transit point, region, district, territory, or any particu- period provided in paragraph (3) of section 16 of this

lar description of traffic, in any respect whatsoever ; or Appendix. On shipments reconsigned or diverted by

to subject any particular person, company, firm, cor- an agent who has furnished the carrier in the reconporation, 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- owner, and where such shipments are refused or abansonable prejudice or disadvantage in any respect whatdoned at ultimate destination, the said beneficial

soever: Provided, however, That this paragraph shall owner shall be liable for all legally applicable charges

not be construed to apply to discrimination, prejudice, in connection therewith. If the reconsignor or diverter

or disadvantage to the traffic of any other carrier of has given to the carrier erroneous information as to

whatever description.

who, the beneficial owner is, such reconsignor or diverter 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

to carry out policy

begun within the same period provided in the case of

It is declared to be the policy of congress that ship an action against a consignee who has given erroneous

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

dustrial products for export. The Commission is di-

is made to another party upon instruction

rected, on its own initiative or an application by inter- If a shipper or consignor of a shipment of property

ested persons, to make such investigations and con- (other than a prepaid shipment) is also the consignee

duct 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

out such policy .

railroad or a delivering express company subject to
§ 4

TITLE 49, APPENDIX-TRANSPORTATION Page 530

the provisions of this chapter, (a) to deliver such prop- to 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 pay- carriers, 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

charges, notwithstanding the foregoing provisions of § 4. Long and short haul charges ; competition with water

this paragraph and irrespective of any provisions to

routes

the contrary in the bill of lading or in the contract of

transportation under which the shipment was made .

(1) Charges for long and short hauls and on through route;

An action for the enforcement of such liability either

exemption

against the party to whom delivery is made or the It shall be unlawful for any common carrier subject

shipper or consignor may be begun within the period to this chapter or chapter 12 of this Appendix to

provided in paragraph (3) of section 16 of this Appen- charge or receive any greater compensation in the agdix, or before the expiration of six months after final gregate for the transportation of passengers, or of like

judgment against the carrier in an action against kind of property, for a shorter than for a longer diseither of such parties begun within the limitation tance over the same line or route in the same direcperiod provided in paragraph (3) of section 16 of this tion, the shorter being included within the longer disAppendix . The term "delivering carrier" means the tance, or to charge any greater compensation as a

line-haul carrier making ultimate delivery . through rate than the aggregate of the intermediate

(4) Interchange of traffic

rates subject to the provisions of this chapter or chapAll carriers subject to the provisions of this chapter

ter 12 of this Appendix, but this shall not be construed

term

shall, according to their respective powers, afford all

of this

chapter

i pany common carrier his A the ix t o

reasonable, proper, and equal facilities for the inter- c

or receive or chapter 12 n this for

a shorter

change of traffic between their respective lines and

for a

charge l eceive as great compensation

That upon appli

connecting lines, and for the receiving, forwarding,

ti t t Commission

he os and

after

That

csuch

and delivering of passengers or property to and from

carrier, in special cases,

aftr authorized su

connecting lines; and shall not discriminate in their Commission to

ci

charge lo

,

for

may

lo

be

shorter

the

rates, fares, and charges between connecting lines, or

e for the transportation

p

of passengers

pr than for

o

r

propunduly prejudice any connecting line in the distriburty

. and

e

the Commission

may o

time to time pretion of traffic that is not specifically routed by the

scribe the such designated

iers

shipper . As used in this paragraph the term "connectmay t extent oto which

foregoing

ing line" means the connecting line of any carrier subbe relieved from the operation is the authorject to the provisions of this chapter or any common

ity provisions this section, is s the mis sion

carrier by water, subject to chapter 12 of this Appenshall not permit the

th it

establishment

proviso,

of an

CoCommission

dix

shall charge to or

from the more distant point that is not reasonably

(5) Terminal facilities; use of and compensation forcompensatory for the service performed ; and no such

If the Commission finds it to be in the public inter- authorization shall be granted on account of merely

est and to be practicable, without substantially impair- potential water competition not actually in existence :

ing 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

to require the use of any such terminal facilities, in- provisions of this chapter or chapter 12 of this Appencluding main-line track or tracks for a reasonable dis- dix 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 opby railroad, by another such carrier or other such car- erating over a more direct line or route, to or from the

riers, 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

and reasonable for the use so required, to be ascer- in other proceedings: And provided further, That tartained 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 paid or adequately secured before the enjoyment of be filed when application is made to the Commission

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 re- plication 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 the carrier whose terminal facilities are required And provided further, That the provisions of this para-
Page 531

TITLE 49, APPENDIX-TRANSPORTATION 0 5

graph shall not apply to express companies subject to (i) for two or more carriers to consolidate or merge

the provisions of this chapter, except that the exemp- their properties or franchises, or any part thereof,

tion herein accorded express companies shall not be into one corporation for the ownership, manageconstrued to relieve them from the operation of any ment, and operation of the properties theretofore in

other provision. contained in this Act. separate ownership; or for any carrier, or two or

(2) Competition of railroads with water routes ; change of

more carriers jointly, to purchase, lease, or contract

rates

to operate the properties, or any part thereof, of anWherever a carrier by railroad shall in competition

other ; or for any carrier, or two or more carriers

with a water route or routes reduce the rates on the

jointly, to acquire control of another through ownercarriage of any species of freight to or from competiship of its stock or otherwise ; or for a person which

tive points, it shall not be permitted to increase such

is not a carrier to acquire control of two or more carrates unless after hearing by the Commission it shall

riers through ownership of their stock or otherwise;

be found that such proposed increase rests upon

or for a person which is not a carrier and which has

changed conditions other than the elimination of

control of one or more carriers to acquire control of

water competition.

another carrier through ownership of its stock or

(Feb . 4, 1887, ch . 104, pt . I, § 4, 24 Stat. 380; June 18,

otherwise; or

<

1910, ch . 309, § 8, 36 Stat . 547 ; Feb . 28, 1920, ch . 91,

rights joint ownership

erof, any an

§ 406, 41 Stat . 480; Aug . 9, 1935, ch. 498, § 1, 49 Stat.

railroad

d

for

line or

or joint o

by

543; Sept. 18, 1940, ch . 722, title I, § 6(a), 54 Stat. 904;

such carrier, tterminals

owned

or

railroad

or

in

operated

joint

to

by

use

any

o

other

11, 1957, Pub. L. 85-99, 71 Stat . 292; Sept. 27,

, and terminals incidental thereto.

July (b) Whenever a transaction is proposed under subdi-

, Pub. 87-707, 76 Stat. 635 .)

vision (a) of this paragraph, the carrier or carriers or

0 5. Repealed. Pub. L . 95-473, § 4(b), (c), Oct. 17, 1978,

person seeking authority therefor shall present an application 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 carriers and the applicant or applicants (and, in

Table at beginning of Title 49

. See, also, notes follow- case carriers by motor vehicle are involved, the pering Table.

sons specified in section 305(e) of this Appendix), and

Prior to repeal, section read as follows :

shall afford reasonable opportunity for interested parties to be heard. If the Commission shall consider it

§ 5. Combinations and consolidations of carriers

necessary in order to determine whether the findings

specified below may properly be made, it shall set said

(1) Pooling; division of traffic, service, or earnings 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 consistdures applicable ent with the public interest .

(a) It shall be lawful, with the approval and authori- (e) No transaction which contemplates a guaranty or

zation of the Commission, as provided in subdivision assumption of payment of dividends or of fixed

(b) of this paragraph or paragraph (3)-

charges, shall be approved by the Commission under
§ 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 para- Commission 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 posi-

bility ; prerequisites

tion with respect to their employment except that the (a) If a merger, consolidation, unification or coordiprotection afforded to any employee pursuant to this nation project (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, ruary 5, 1976, and ending on December 31, 1981, the

1976, pursuant to this subdivision and those estab- 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 agree- dure set forth in this paragraph or in paragraph (2) of

ment pertaining to the protection of the interests of 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 this paragraph may be proposed to the Commission

duly authorized representative or representatives of byits 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 Commis- the consent of the common carriers by railroad subsion shall-

ject 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 Secretary of Transportation, (A) publish notice thereof

prior to such submission to the Commission, submitin the Federal Register, or (B) if such application is

ted such proposed transaction to the Secretary for

incomplete, reject such application by order, which evaluation pursuant to subdivision (f) of this paraorder shall be deemed to be final under the provi-

graph .

sions of section 17 of this Appendix ;

(c) Whenever a transaction described in subdivision

(ii) provide that written comments on an applica- (a) of this paragraph is proposed under this paration, as to which such notice is published, may be

graph, the proposing party shall submit an application

filed within 45 days after the publication of such for approval thereof to the Commission, in accordance

notice in the Federal Register;

with such requirements as to form, content, and docu-

(iii) require that copies of any such comments mentation as the Commission may prescribe . Within

shall be served upon the Secretary of Transporta- 10 days after the date of receipt of such an application and the Attorney General, each of whom shall tion, the Commission shall send a notice of such probe afforded 15 days following the date of receipt posed transaction tothereof to inform the Commission whether he will

(i) the Governor of each State which may be afintervene as a party to the proceeding, and if so, to fected, directly or indirectly, by such transaction if

submit preliminary views on such application ; it is executed or implemented ;

(iv) require that all other applications, which are (ii) the Attorney General;

inconsistent, in whole or in part, with such applica- (ill) the Secretary of Labor; and

tions, and all petitions for inclusion in the transac- (iv) the Secretary (except where the Secretary is

tion, shall be filed with the Commission and fur- the proposing party).

nished to the Secretary of Transportation, within 90 The Commission shall accompany its notice to the

days after the publication of notice of the applica- Secretary with a request for the report of the Secretion in the Federal Register ;

tary pursuant to clause (v) of subdivision (f) of this

(v) conclude any evidentiary proceedings within paragraph. Each such notice shall include a copy of

240 days following the date of such publication of such application ; a summary of the proposed transacnotice, except that in the case of an application in- tion involved, and the proposing party's reasons and

volving the merger or control of two or more class I public interest justifications therefor .

railroads, as defined by the Commission, the Com- (d) The Commission shall hold a public hearing on

mission shall conclude any evidentiary proceedings each application submitted to it pursuant to subdivinot more than 24 months following the date upon sion (c) of this paragraph, within 90 days after the

which notice of the application was published in the date of receipt of such application . Such public hearFederal Register; and

ing shall be held before a panel of the Commission

(vi) issue a final decision within 180 days following duly designated for such purpose by the Commission .

the date upon which the evidentiary proceeding is Such panel may utilize administrative law judges and

concluded.

the Rail Services Planning Office in such manner as it

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 Appen- the evaluation of such application and comments

dix within such 180-day period, it shall notify the Con- thereon, and the timely and reasonable determination

gress 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

plication and to approve such proposed transaction (I) whether such proposed transaction will impursuant to subdivision (g) of this paragraph . -Such prove rail service ; and

panel shall complete such hearing within 180 days (v) submit a report to the Commission setting

after the date of referral of such application to such forth the results of each study conducted pursuant

panel, and it may, in order to meet such requirement, to clause (iv) of this subdivision, within 10 days after

prescribe such rules and make such rulings as may an application is submitted to the Commission portend 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 Com- weight and consideration to such report in making

mission shall hear oral argument on the matter so cer- its 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 subdivision (f) of this paragraph;

(4) Noncarrier deemed carrier upon acquiring control

(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 transac- extent 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 and sections 20a(2) to (11), and 314 of this Appendix,

the Secretary by a common carrier by railroad pursu- (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

shall-

(1) publish a summary and a detailed account of

person, the Commission shall authorize the issue or

the contents of such proposed transaction in the

assumption applied for only if it finds that such issue

Federal Register, in order to provide reasonable or assumption is consistent with the proper performnotice to interested parties and the public of such

ance of its service to the public by each carrier which

proposed transaction;

is under the control of such person, that it will not

(11) give notice of such proposed transaction to the

impair the ability of any such carrier to perform such

Attorney General and to the Governor of each State

service, and that it is otherwise consistent with the

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 re- fectuating, the control or management in a common

sped ) t

interest of any two or more carriers, however such

graphical

(A the

area

needs

affected ;

railtransportation in the georesult is attained, whether directly or indirectly, by

(B) the effect of such proposed transaction on

use of common directors, officers, or stockholders, a

the retention and promotion of competition in the holding or investment company or companies, a voting

provision of rail and other transportation services trust or trusts, or in any other manner whatsoever . It

in the geographical area affected ;

shall be unlawful to continue to maintain control or

(C) the environmental impact of such proposed management accomplished or effectuated after the entransaction and of alternative choices of action ;

actment of this amendatory paragraph and in viola-

(D) the effect of such proposed transaction on tion of its provisions. As used in this paragraph and

employment;

paragraph (6) of this section, the words "control or

(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

other possible choices of action ;

(6) Transactions deemed to effectuate control or management

(F) the rationalization of the rail system; For the purposes of this section, but not in anywise

(G) the impact of such proposed transaction on limiting the application of the provisions thereof, any

shippers, consumers, and railroad employees ;

transaction shall be deemed to accomplish or effectu-

(H) the effect of such proposed transaction on ate the control or management in a common interest

the communities in the geographical areas affect- of two carriersed and on the geographical areas contiguous to

(a) if such transaction is by a carrier, and if the

such areas ; and effect of such transaction is to place such carrier
§ 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 per- The authority conferred by this section shall be exsons affiliated with any one of them and persons af- elusive 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

(7) Affiliation with a carrier defined

power (with the assent, in the case of a purchase and

For the purposes of this section a person shall be

sale, a lease, a corporate consolidation, or a corporate

held to be affiliated with a carrier if, by reason of the

merger, of a majority, unless a different vote is rerelationship of such person to such carrier (whether number

applicable State law, in which case he

uer so required shall assent, of the votes of the by reason of the method of, or circumstances sur- holders of the shares entitled to vote of the capital

rounding organization or operation, or whether estab- stock of such corporation at a regular meeting of such

lished through common directors, officers, or stock- stockholders, the notice of such meeting to include

holders, a voting trust or trusts, a holding or invest- such purpose, or at a special meeting thereof called

ment company or companies, or any other direct or in- for such purpose) to carry such transaction into effect

direct means), it is reasonable to believe that the af- and to own and operate any properties and exercise fairs of any carrier of which control may be acquired any control or franchises acquired through said transby such person will be managed in the interest of such 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

in the opinion of the Commission, to prevent continu- any properties and exercise any control or franchises

ance 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

graphs (2) to (13) of this section, any penalty provision carrier or other corporation shall be deemed to be in

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, al- such 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,

(10) Supplemental orders by Commission subject to this chapter ; and a motor carrier subject to

The Commission may from time to time, for good

chapter 8 of this Appendix ; and a water carrier subject

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)

the case of a transaction within the scope of para- any person controlling, controlled by, or under

graph (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 ex- any 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 de- For 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 appli-

forwarder 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 oper- October 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 ;

per institute proceedings to inquire into the operation

rules and regulations

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 equip-

(17) Permission of interest in competing water carrier ment), or rules and regulations pertaining thereto, or

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 ;

ation, control, or interest will , not prevent such otherwise the application shall be denied. The approvcommon 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

paragraph (2) of this section shall be applicable there-

reaus, committees, etc .

to in addition to the provisions of this paragraph: And

Each conference, bureau, committee, or other orgaprovided further, That no such authorization shall be nization established or continued pursuant to any

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 preprior to such date, and such order is still in effect.

scribed by the Commission, and all such accounts,

(Feb. 4, 1887,_ .ch. 104, pt . I, § 5, 24 Stat . 380 ; Aug

. 24, records, files, and memoranda shall be subject to in1912, ch. 390, § 11, 37 Stat . 566 ; Feb. 28, 1920, ch. 91,

resen on by the Commission or its duly authorized in- rep1912,

408, 41 Stat. 480, 482; June 10, 1921, ch. 20, 42

esentatives.

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

1102 ; Aug. 9, 1935, ch. 498, § 1, 49 Stat . 543 ; Sept. 18, The Commission shall not approve under this sec1940, ch. 722, title I, 17, 54 Stat . 905 ; Aug. 2, 1949, ch . tion any agreement between or among carriers of dif379, §§ 3, 4, 63 Stat . 485 ; July 27, 1965, Pub . L. 89-93, ferent classes unless it finds that such agreement is of

§ 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 earriStat. 1466

ers of one class ; pipe-line companies are carriers of one

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 sec- of 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

1978, 92 Stat. 1466, 1470

transaction, to which section 5 of this Appendix is applicable .

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 follow- The 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.),

(7) Investigation of prior approved agreements; termination

sections 8 and 9 of title 15, and chapter 592 of the

or modification of approval; effective date

Act of June 19, 1936, as amended (15 U.S.C . 13, 13a,

The Commission is authorized, upon complaint or

13b, 21a) ; and

upon its own initiative without complaint, to investi-

(c) "carrier" means any common carrier by railgate and determine whether any agreement previously

road subject to this chapter .

approved by It under this section, or terms and conditions upon which such approval was granted, is not or

(2) Application to Commission for approval of agreements ;

are not in conformity with the standard set forth in

rules and regulations; criteria

paragraph (2) of this section, or whether any such Any carrier which is a party to an agreement, beterms and conditions are not necessary for purposes of tween or among two or more carriers, relating to rates,

conformity with such standard, and, after such inves- fares, classification, divisions, allowances, or charges

tigation, the Commission shall by order terminate or (including charges between carriers and compensation

modify its approval of such agreement if it finds such paid or received for the use of facilities and equipaction necessary to insure conformity with such stand- ment), or rules and regulations pertaining thereto, or

ard, and shall modify the terms and conditions upon procedures for the Joint consideration, initiation, or

which such approval was granted to the extent it finds establishment thereof, shall, under such rules and regnecessary to insure conformity with such standard or ulations as the Commission shall prescribe, apply to

to the extent to which it finds such terms and condi- the Commission for approval of such agreement. The

tions not necessary to insure such conformity . The ef- Commission shall, by order, approve any such agreefective date of any order terminating or modifying ap- ment if approval thereof is not prohibited by paraproval, or modifying terms and conditions, shall be graph (4) or (5) of this section and if it finds that, by

postponed for such period as the Commission deter- reason of furtherance of the national- transportation

mines to be reasonably necessary to avoid undue hard- policy declared in this Act, the relief provided in paraship.

graph (8) of this section should apply with respect to

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

(9) Relief from operation of antitrust laws

complied with, or (b) unless the Commission receives a

Parties to any agreement approved by the Commis- verified written statement (and any written supplesion under this section and other persons are, if the ment or addendum thereto requested by the Commisapproval of such agreement is not prohibited by para- sion) setting forth, with respect to each carrier which

graph (4), (5), or (6) of this section, relieved from the is a party to such agreement (I) its name, (ti) the mailoperation of the antitrust laws with respect to the ing address and telephone number of its headquarters

making of such agreement, and with respect to the office, (iii) the names of each of its affiliates, (iv) the

carrying out of such agreement in conformity with its names, addresses, and affiliations of each of its offiprovisions and in conformity with the terms and con- cers and directors and . of each person who, together

ditions prescribed by the Commission .

with any affiliate, owns or controls any debt, equity,

Effect of Commission's action

or security interest in it having a value of $1,000,000 or

(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 grant- with 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, 1470submit to the Commission such reports.-as may be prescribed

repealed subject to .an exception related to

scribed by the Commission . All such accounts, records,

transportation of oil by pipeline. For disposition of the

files, and

Commission or

memoranda

its duly

shall be subject

authorized representatives

epres ectionv .

this section in revised Title 49, Transportation, see The Commission may conduct investigations,

beginning of Title 49. See, also, notes follow-

, coed , make reTable

Table .

ports, issue subpoenas, conduct hearings, require the

section read as follows:

production of relevant documents, records, and propPrior to repeal, erty, copy and verify the correctness of information

0 5c. Agreements between common carriers by railroad subsubject to inspection, and take depositions (a) to determine whether any such conference, bureau, commitjec

beter

tee, or other organization, or any carrier which is a

(1) Definitions party to any such agreement, has acted or is acting in

As used in this section, the term- compliance with the provisions of this section, regula-

(a) "affiliate" means any person directly or indi- tions 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 transporused in this subdivision, the term (i) "control" has tation resources or has established practices which are

the same meaning as in section 1(3)(b) of this Ap- inconsistent with efficient, flexible, and economic oppendix ; and (ii) "ownership" refers to equity hold- eration, and (c) for such other purposes as the Comings 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

with respect to a pooling, division, or other matter or the extent it finds necessary to insure conformity with

transaction to which section 5 of this Appendix is ap- such standard or to the extent to which it finds such

plicable.

terms and conditions not necessary to insure such con-

(b)

conformity . The effective date of any order terminating

Agreements for determining matters through joint consid- 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 agree- than once every 3 years, review each agreement which

ment there is accorded to each party the free and un- the 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 section- public 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 clan-

No order shall be entered under this section except

sification filed by a carrier of the same mode pursu- after 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

action.

(8) Relief from operation of antitrust laws

As used in clause (I) of this subdivision, a single-line Parties to any agreement approved by the Commisrate, 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

riers or agencies) can be performed by such carrier .

to the making of such agreement, and with respect to

(b) The limitations set forth in subdivision (a) of the carrying out of such agreement in conformity with

this paragraph shall not be applicable to- its provisions and in conformity with the terms and

(I) general rate increases or decreases, if the agree- conditions prescribed by the Commission .

ments accord the shipping public, under specified

procedures, adequate notice of at least . 15 days of (9) Applicability of Commission's action

such proposals and an opportunity to present com- . Any action of the Commission under this section (a)

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 increases or decreases, or

such approval, (d) in prescribing the terms and condi-

(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 apsuch changes are to be applicable .

plicability of the relief provisions of paragraph (8) of

In any proceeding in which it is alleged that a carrier this section .

voted or agreed upon a rate, allowance, or charge, in (10) Periodic assessment and report by Federal Trade Comleging

violation

such

of the

violation shall

provisions of

have

this

the

section,

burden

the

of

party al

showing

mission

-

mission to Commission regarding agreements, etc. ; conthat such vote or agreement occurred . A showing of

availability of report

parallel behavior is not, by itself, sufficient to satisfy The Federal Trade Commission, in consultation with

such burden. the Antitrust Division of the Department of Justice,

( 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 docketditions are not necessary or whether any additional or

ed with conferences, bureaus, committees, etc .

modified terms and conditions are necessary for pur- Any 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

minate or modify its approval of such an agreement if shall make a final disposition with respect to any rule,
§ 6

TITLE 49, APPENDIX-TRANSPORTATION Page 538

ached

rate, or charge docketed with such organization within to the public published as aforesaid, which shall plain120 days after such proposal is docketed .

ly state the changes proposed to be made in the sched-

(Feb. 4, 1887, ch. 104, part I, § 5b, as added Feb . 5, ule then in force and the time when the changed

1976, Pub. L . 94-210, title II, § 208(b), 90 Stat. 42, and rates, fares, or charges will go into effect; and the proamended Oct. 19, 1976, Pub. L. 94-555, title II, posed changes shall be shown by printing new

- 220(k), 90 Stat. 2630 .) 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 dis92 Stat. 1466, 1470

cretion and for good cause shown, allow changes upon

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

this chapter shall file with the Commission created by if, in its judgment, not inconsistent with the public inthis 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 to any joint tariff shall be specified therein, and each

points on the route of any other carrier by railroad, by of the parties thereto, other than the one filing the

pipe line, or by water when a through route and joint same, shall file with the Commission such evidence of rate have been established. If no joint rate over the

concurrence therein or acceptance thereof as may be through route has been established, the several carri- required or approved by the Commission, and where

ers in such through route shall file, print, and keep such evidence of concurrence or acceptance is filed it open to public inspection, as aforesaid, the separately shall not be necessary for the carriers filing the same

established rates, fares, and charges applied to the to also file copies of 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, riers in relation to any traffic affected by the proviall privileges or facilities granted or allowed, and any sions of this chapter to which it may be a party : Pro- rules 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, which, in its opinion, is not necessary in the public inand copies for the use of the public shall be kept 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 transpor- schedules ; 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 pro-

use

visions of this section shall apply to all traffic, trans- The 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

(2) Schedule of rates through foreign country

manner as the Commission by regulation shall preAny common carrier subject to the provisions of this scribe . The Commission shall, beginning 2 years after

chapter receiving freight in the United States to be February 5, 1976, require (a) that all rates shall be incarried through a foreign country to any place in the corporated into the individual tariffs of each common

United States shall also in like manner print and keep carrier by railroad subject to this chapter or rail rateopen to public inspection, at every depot or office making association within 2 years after the initial pubwhere such freight is received for shipment, schedules

lication of the rate, or within 2 years after a change in

showing the through rates established and charged by any rate is approved by the Commission, whichever is

such common carrier to all points in the United States later, and (b) that any rate shall be null and void with

beyond the foreign country to which it accepts freight respect to any such carrier or association which does

for shipment ; and any freight shipped from the not so incorporate such rate into its individual tariff .

United States through a foreign country into the The Commission may, upon good cause shown, extend

United States the through rate on which shall not such period of time. Notice of any such extension and

have been made public, as required by this chapter,

a statement of the reasons therefor shall be promptly

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

said freight were of foreign production .

not in accordance with this section and with such regulations . 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

No change shall be made in the rates, fares, and (7) Transportation without fling and publishing rates forbidcharges or joint rates, fares, and charges which have

den; rebates; privileges

been filed and published by any common carrier in No carrier, unless otherwise provided by this chapcompliance with the requirements of this section, ter, shall engage or participate in the transportation

except after thirty days' notice to the Commission and of passengers or property, as defined in this chapter,
Page 539

TITLE 49, APPENDIX-TRANSPORTATION § 8

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 carri- § 7. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17, 1978,

er, receiver, or trustee to comply with the terms of any

92 Stat. 1466, 1470

regulation adopted and promulgated or any order

made by the Commission under the provisions of this Section repealed subject to an exception related to

section, such carrier, receiver, or trustee shall be liable transportation of oil by pipeline. For disposition of

to a penalty of $500 for each such offense, and $25 for this section in revised Title 49, Transportation, see

each and every day of the continuance of such of- Table at beginning of Title 49 . See, also, notes followfense, which shall accrue to the United States and ing Table.

may be recovered in a civil action brought by the

Prior to repeal, section read as follows :

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 .

(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 . 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

§ 8. Liability in damages to persons injured by violation of chapter to be done not to be so done, or shall aid or

law

abet any such omission or failure, or shall be guilty of

In case any common carrier subject to the provisions any infraction of this chapter for which no penalty is

of this chapter shall do, cause to be done, or permit to otherwise provided, or who shall aid or abet therein,

be done any act, matter, or thing in this chapter pro- shall be deemed guilty of a misdemeanor, and shall,

hibited or declared to be unlawful, or shall omit to do upon conviction thereof in any district court of the

any act, matter, or thing in this chapter required to be United States within the jurisdiction of which such ofdone, such common carrier shall be liable to the fense was committed, be subject to a fine of not to

person or persons injured thereby for the full amount exceed $5,000 for each offense : Provided, That if the

of damages sustained in consequence of any such vio- offense for which any person shall be convicted as

lation of the provisions of this chapter, together with aforesaid shall be an unlawful discrimination in rates,

a reasonable counsel or attorney's fee, to be fixed by fares, or charges for the transportation of passengers

the court in every case of recovery, which attorney's or property, such person shall, in addition to the fine

fee shall be taxed and collected as part of the costs in hereinbefore provided for, be liable to imprisonment

the case. in the penitentiary for a term of not exceeding two

(Feb . 4, 1887, ch. 104, pt. I, § 8, 24 Stat. 382 ; Aug. 9,

years . or both such fine and imprisonment, in the dis1935, ch . 498, § 1, 49 Stat. 543.)

cretion of the court.

(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 corpoSection repealed subject to an exception related to

ration, any officer or agent thereof, or any person

transportation of oil by pipeline . For disposition of

acting for or employed by such corporation, who, by

this section in revised Title 49, Transportation, see

means of false billing, false classification, false weighTable at beginning of Title 49 . See, also, notes following, or false report of weight, or by any other device or

ing Table.

means, shall knowingly and willfully assist, or shall

Prior to repeal, section read as follows :

willingly suffer or permit, any person or persons to

obtain transportation for property at less than the

§ 9. Remedies of persons damaged; election; witnesses

regular rates then established and in force on the line

Any person or persons claiming to be damaged by

of transportation of such common carrier, shall be

any common carrier subject to the provisions of this

deemed guilty of a misdemeanor, and shall, upon conchapter may either make complaint to the Commisviction thereof in any court of the United States of

sion as hereinafter provided for, or may bring suit in

competent jurisdiction within the district in which

his or their own behalf for the recovery of the damsuch offense was committed, be subject to a fine of not

ages for which such common carrier may be liable

exceeding $5,000, or imprisonment in the penitentiary

under the provisions of this chapter in any district

for a term of not exceeding two years, or both, in the

court of the United States of competent jurisdiction;

discretion of the court, for each offense .

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

1978, 92 Stat. 1466, 1470

force on the line of transportation; or who shall know- +,

Section repealed subject to an exception related to

ingly and willfully, directly or indirectly, himself or by

transportation of oil by pipeline . For disposition of

employee, agent, officer, or otherwise, by false statement 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 follow- lading, receipt, voucher, roll, account, claim, certifiing Table.

cate, affidavit, or deposition, knowing the same to be 1

Prior to repeal, section read as follows : false, fictitious, or fraudulent, or to contain any false, i t

§ 10. Violation of regulations by carrier, discrimination ; penfictitious, or fraudulent statement or entry, obtain or

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 '(

Any common carrier subject to the provisions of this such property, whether with or without the consent or

chapter, or, whenever such common carrier is a corpo- connivance of the carrier, whereby the compensation .

ration, any director or officer thereof, or any receiver, of such carrier for such transportation, either before

trustee, lessee, agent, or person acting for or employed or after payment, shall in fact be made less than the

by such corporation, who, alone or with any other cor- regular 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,

to be done, any act, matter, or thing in this chapter upon conviction thereof in any court of the United

prohibited or declared to be unlawful, or who shall aid States of competent jurisdiction within the district in

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

done, or shall cause or willingly suffer or permit any $5,000 or imprisonment in the penitentiary for a term

act, matter, or thing so directed or required by this of not exceeding two years, or both in the discretion of
Page 541

TITLE 49, APPENDIX-TRANSPORTATION 812

the court: Provided, That the penalty of imprison- Stat . 497; July 16, 1935, ch . 383, 49 Stat. 481 ; Aug . 9,

ment shall not apply to artificial persons .1935, ch. 498, 4 1, 49 Stat. 543.)

(4) Inducing unjust discrimination ; penalty; liability for dama~

812. Repealed . Pub. L. 95-473, § 4(b), (c), Oct. 17,

If any such person, or any officer or agent of any

1978, 92 Stat. 1466, 1470

such corporation or company, shall, by payment of

Section repealed subject to an exception related to

money or other thing of value, solicitation, or other- transportation of oil by pipeline

. For` disposition of

wise, induce or attempt to induce any common carrier

this section in revised Title 49, Transportation, see

subject to the provisions of this chapter, or any of its Table at beginning of Title 49

. See, also, notes follow- officers or agents, to discriminate unjustly in his, its, ins Table

.

or their favor as against any other consignor or consignee

Prior

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 912. Authority and duties of Commission ; witnesses; deposi .

such corporation or company shall be deemed guiltytions

of a misdemeanor, and shall, upon conviction thereof

in any court of the United States of competent juris- (1) Authority, duties, and proceedings of Commission ; witdiction within the district in which such offense was

nesses; exemption from applicability of chapter for percommitted, be subject to a fine of not exceeding sons, class of persons, etc.; procedures for establishment

$5,000, or imprisonment in the penitentiary for a term and revocation

of not exceeding two years, or both, in the discretion (a) The Commission shall have authority, in order to

of the court, for each offense ; and such person, corpo- perform the duties and carry out the objects for which

ration, or company shall also, together with said it was created, to inquire into and report on the mancommon carrier, be liable, jointly or severally, in an agement of the business of all common carriers subaction to be brought by any consignor or consignee ject to the provisions of this chapter, and to inquire

discriminated against in any court of the United into and report on the management of the business of

States of competent jurisdiction for all damages persons controlling, controlled by, or under a common

caused by or resulting therefrom . control with, such carriers, to the extent that the busi-

(Feb. 4, 1887, ch. 104, pt. I, $ 10, 24 Stat. 382; Mar. 2, ness of such persons is related to the management of

1889, ch. 382, $ 2, 25 Stat. 857 ; June 18, 1910, ch . 309, the business of one or more such carriers, and the

§ 10, 36 Stat. 549; Feb . 28, 1920, ch. 91, § 414, 41 Stat. Commission shall keep itself informed as to the

483; June 19, 1934, ch. 652, § 602(b), 48 Stat . 1102 ; Aug. manner and method in which the same are conducted .

9, 1935, ch. 498, 11. 49 Stat. 543 .)

The Commission may obtain from such carriers and

persons such information as the Commission deems

811. Repealed . Pub. L. 95-473, § 4(b), (c), Oct. 17, necessary to carry out the provisions of this chapter ;

1978, 92 Stat. 1466, 1470

and may transmit to Congress from time to time such

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 follow- and, 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 ap- this 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 Com- and reasonable opportunity for a hearing, that the apmissioner may be removed by the President for ineffi- plication 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 appoint- transactions 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 chap- would 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 Commis- by order, exempt such persons, class of persons, servsioners shall not engage in dny other business, voca- ices, 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 transac-

(Feb . 4, 1887, ch. 104, pt . I, § 11, 24, 24 Stat. 383, 387 ; tions, to the extent specified in such order, is necesJune 29, 1906, ch. 3591, § 8, 34 Stat . 595; Aug . 9, 1917, sary to effectuate the national transportation policy

ch. 50, § 1, 40 Stat. 270; Feb . 28, 1920, ch . 91, § 440, 41 declared in this Act and to achieve effective regulation

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 .

(2) Attendance of witnesses and production of documents

91, § 415, 41 Stat . 484 ; Aug. 9, 1935, ch. 498, 11, 49

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

(3) Compelling attendance and testimony of witnesses, etc . this section in revised Title 49, Transportation, see

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 .

on may, in case of contumacy or refusal to obey a sub-

Prior to repeal, section read as follows:

poena 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 associa- order of the court may be punished by such court as a

contempt thereof .

tion, or any mercantile, agricultural, or manufacturing

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 al- tice, or judge of a supreme or superior court, mayor or

fury

be chief magistrate of a city, judge of a county court, or lelie to have been done, the common carrier shall

court of common please of any of the United States,

relieved of liability to the complainant only for the

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 Commisand to produce documentary evidence, in the same

sion's own motion; expenses of State commissions

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

(5) Oath; subscription of testimony on deposition commission or any State or Territory at the request of

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

subscribed by the deponent. chapter, or concerning which any question may arise

(6) Deposition in foreign country ; riling of depositions

under any of the provisions of this chapter, or relating

If a witness whose testimony may be desired to be to the enforcement of any of the provisions of this

taken by deposition be in a foreign country, the depo- chapter

. And the said Commission shall have the same

sition may be taken before an officer or person desig- powers and its motion itu

nas

though

proceed with t

had

any inquiry

nated by the Commission, or agreed upon by the parto

by f

ec on iit

petition under any

of

e provi- ties by stipulation in writing to be filed with the Com- si this

chapter, t ow t

th

a and

mission. All depositions must be promptly filed with e

nfo a this rder, orders in including

the case,

power o make and a

the Commission.

enforce any o or , or relating to

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 commissionsthe laws or constitution of any State, or the pendency

Whenever in any investigation under the provisions of any proceeding before any State court or other

of this chapter, or in any investigation instituted upon State authority . Nothing in this paragraph shall

petition of the carrier concerned, which petition is au- affect the authority of the Commission to institue [inthorized 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,

the Commission, before proceeding to hear and dis- (6) Petition for commencement of proceeding for issuance,

pose of such issue, shall cause the State or States in-

amendment, or repeal of order, etc., relating to common

terested to be notified of the proceeding . The Commis- carriers by railroads ; grant or denial ; judicial review;

sion may confer with the authorities of any State

limitations; definition

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

tween rate structures and practices of carriers subject proceeding for the issuance, amendment, or repeal of

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

and where the rate-making authority of a State is or Commission denies such a petition, it shall set forth,

may be affected by the action taken by the Commis- and publish in the Federal Register, Its reasons for

sion. The Commission is also authorized to avail itself such denial .

of the cooperation, services, records, and facilities of (b) If the Commission denies a petition under subdisuch State authorities in the enforcement of any pro- vision (a) (or if it fails to act thereon within the 120-

vision of this chapter or chapter 12 of this Appendix . day period established by such subdivision), the peti-

(4) Duty of Commission where State regulations result in distioner may commence a civil action in an appropriate

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 inter- on 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 for- such 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,

rates; prerequisites; procedures

amendment, or repeal of any order, rule, or regulation

The Commission shall have exclusive authority, under this Act relating to common carriers by raftupon application to it, to determine and prescribe road .

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 appropri- 1910, 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 .

Notice of the application to the Commission shall be Section repealed subject to an exception related to

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, accord- Table 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 provi-Prior to repeal, section read as follows :
014

TITLE 49, APPENDIX-TRANSPORTATION Page 544

§ 13a . Discontinuance or change of the operation or service change, in whole or in part, of the operation or service

of trains or ferries; notice ; investigation ; hearing ; deter. of such train or ferry, and (b) the continued operation

mination

or service of such train or ferry without discontinu-

(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

carriers affected thereby at least ten days prior to the

no shall be

day on which such discontinuance or change would

Whenever an investigation made by said

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 effec-

All reports of investigations made by the Commis- tive, 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 distri- part, 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 supersede the laws of any State or the orders or its reports and decisions in such form and manner as

regulations of any administrative or regulatory body may be best adapted for public information and use,

of any State applicable

c as in this

to such dirdiscontinuance

provided

is

and such authorized publications shall be competent changew unless notice

expiration of

ided n evidence of the reports and decisions of the Commisor e

rder by

with

the

the

Commission

mis

soafter

th

such investigation aresion 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

service, the jurisdiction of any State as to such discon- proof or authentication thereof

. The Commission may

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 .

again be invoked by the carrier or carriers .

(Feb. 4, 1887, ch. 104, pt . I, 114 . 24 Stat . 384 ; Mar. 2,

(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

June 3, 1980, 94 Stat. 427 1

duly filed with it by said carrier or carriers for author- t,

ity 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 orPrior to repeal, section read as follows :
Page 545

TITLE 49, APPENDIX-TRANSPORTATION § 15

§ 15. Determination of rates, routes, etc .; routing of traffic ; public interest, without regard to the provisions of

disclosures, etc.paragraph (4) of this section. With respect to carriers

(1) Commission empowered to determine and prescribe rates,

by railroad, in determining whether any such cancellaclassifications, etc .

tion or proposed cancellation involving any common

Whenever, after full hearing, upon a complaint

carrier by railroad is consistent with the public intermade as provided in section 13 of this Appendix, or

est, the Commission shall, to the extent applicable, (a)

after full hearing under an order for investigation and compare the distance traversed and the average transhearing made by the Commission on its own initiative, portation time and expense required using the

either in extension of any pending complaint or with- through route, and the distance traversed and the avout any complaint whatever, the Commission shall be erage transportation time and expense required using

of opinion that any individual or joint rate, fare, or alternative routes, between the points served by such

charge whatsoever demanded, charged, or collected by through route, (b) consider any reduction in energy

any common carrier or carriers subject to this chapter consumption which may result from such cancellation,

for the transportation of persons or property, as de- and (c) take into account the overall impact of such

fined in section 1 of this Appendix, or that any indi- cancellation on the shippers and carriers who are afvidual or joint classification, regulation, or practice fected thereby .

whatsoever of such carrier or carriers subject to the

provisions of this chapter, is or will be unjust or un- (4) Through routes to embrace entire length of railroad ; temreasonable or unjustly discriminatory or unduly pref-

porary through routes

erential or prejudicial, or otherwise in violation of any

of the

In establishing any such through route the Commisauthorized

edv

and empowered

a of this

to

chapter, the

prescribe

s

sion shall not (except as provided in section 3 of this

what will the just and reasonable

determine and

individual

c is

Appendix, and except where one of the carriers is a

joint rate, fare, or charge, or rates,

f

fares, .or charges, water line) require any carrier by railroad, without its

to be thereafter observed in such case, or the maxi- consent, to embrace in such route substantially less

mum or minimum, or maximum and minimum, to be than the entire length of its railroad and of any intercharged, and what individual or joint classification, mediate railroad operated in conjunction and under a

regulation, or practice is or will be just, fair, and rea- common management or control therewith, which lies

sonable, to be thereafter followed, and to make an between the termini of such proposed through route,

order that the carrier or carriers shall cease and desist (a) unless such inclusion of lines would make the

from such violation to the extent to which the Com- through route unreasonably long as compared with

mission finds that the same does or will exist, and another practicable through route which could othershall not thereafter publish, demand, or collect any wise be established, or (b) unless the Commission finds

rate, fare, or charge for such transportation other that the through route proposed to be established is

than the rate, fare, or charge so prescribed, or in needed in order to provide adequate, and more effiexcess of the maximum or less than the minimum so cient or more economic, transportation: Provided,

prescribed, as the case may be, and shall adopt the however, That in prescribing through routes the .Comclassification and shall conform to and observe the mission shall, so far as is consistent with the public inregulation or practice so prescribed .

terest, and subject to the foregoing- limitations in

(2) Orders of Commission clauses (a) and (b) of this paragraph, give reasonable

Except as otherwise provided in this chapter, all preference to the carrier by railroad-which originates

orders of the Commission, other than orders for the the traffic . No through route and joint rates applicapayment of money, shall take effect within such rea- ble thereto shall be established by the Commission for

sonable time as the Commission may prescribe . Such the purpose of assisting any carrier that would particiorders shall continue in force until its further order, pate therein to meet its financial needs . In time of

or for a specified period of time, according as shall be shortage of equipment, congestion of traffic, or other

prescribed in the order, unless the same shall be sus- emergency declared by the Commission, it may (either

pended or modified or set aside by the Commission, or upon complaint or upon its own initiative without

be suspended or set aside by a court of competent ju- complaint, at once, if it so orders, without answer or

risdiction .

other formal pleadings by the interested carrier or

(3) Establishment of through routes, joint classifications, carriers, and with or without notice, hearing, or the

joint rates, fares, etc .making or filing of a report, according as the CommisThe Commission may, and it shall whenever deemed sion may determine) establish temporarily such

by it to be necessary or desirable in the public interest, through routes as in its opinion are necessary or desirafter full hearing upon complaint or upon its own ini- able in the public interest .

tiative without complaint, establish through routes,

joint classifications, and joint rates, fares, or charges, (5) Transportation of livestock in carload lots; services inapplicable to the transportation of passengers or prop-

cluded

erty by carriers subject to this chapter, or by carriers Transportation wholly by railroad of ordinary liveby railroad subject to this chapter and common carri- stock in carload lots destined to or received at public

ers by water subject to chapter 12 of this Appendix, or stockyards shall include all necessary service of unthe maxima or minima, or maxima and minima, to be loading and reloading en route, delivery at public

charged, and - the divisions of such rates, fares, or

stockyards of inbound shipments into suitable pens,

charges as hereinafter provided, and the terms and

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, establish any through route, cl assification, or practice, or

per, consignee, or owner, except in cases where the .un<.

any rate, fare, or charge, between street electric pasloading or reloading en route is at the request of the .

senger railways not engaged in the general business of

shipper, consignee, or owner, or to try an intermediate

transporting freight in addition to their passenger and

market, or to comply with quarantine regulations . The

express business, and railroads of a different charac- Commission may prescribe or approve just and reasonter . If any tariff or schedule canceling any through

able rules governing each of such excepted services .

route or joint rate, fare, charge, or classification, withNothing in this paragraph shall be construed to affect

out the consent of all carriers parties thereto or au- the duties and liabilities of the carriers existing . on

thorization by the Commission, is suspended by the February 28, 1920, by virtue : of law respecting the

Commission for investigation, the burden of proof transportation of other than ordinary livestock, or the

shall be upon the carrier or carriers proposing such duty of performing service as to shipments other than

cancelation to show that it is consistent with the those to or from public stockyards .
§ 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 proper- complaint, 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 a

fare, or charge was established pursuant to a finding statement in writing of its reasons for such suspenor order of the Commission and the divisions thereof sion, may from time to time suspend the operation of

are found by it to have been unjust, unreasonable, or 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 time when it would otherwise go into effect ; and after

petition or the making of the order of investigation) full hearing, whether completed before or after the

would have been the just, reasonable and equitable di- rate, fare, charge, classification, regulation, or practice

visions thereof to be received by the several carriers, goes into effect, the Commission may make such order

and require adjustment to be made in accordance

with reference thereto as would be proper in a pro- therewith. In so prescribing and determining the divi- ceeding initiated after it had become effective . if the

sions of joint rates, fares, and charges, the Commission shall give due consideration, among other things,

within the

period

not been concluded and

proposed change to the efficiency with which the carriers concerned are

rate

period of suspension, the prpon, or p acoperated, the amount of revenue required to pay their

ti ,

shall

g,

into

classification, regulation o

; but . respective operating expenses, taxes, and a fair returnin c shall go ito fed in at the end of such period ;

on their railway property held for and used in the

in case of a proposed increased rate or charse_for or in

service of transportation, and the importance to the respect to the transportation of property, the Commispublic of the transportation services of such carriers ;

stun may by order require the interested carrier or carand also whether any particular participating carrier

riers to keep accurate account in detail of all amounts

is an originating, intermediate, or delivering line, and received by reason of such increase, specifying by

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

er of the joint rate, fare, or charge .

to refund, with interest, to the persons in whose

(b) Notwithstanding any other provision of law, the behalf such amounts were paid, such portion of such

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,

a final order in all such proceedings within 270 days rule, regulation, or practice is just and reasonable, and

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

within such time, it shall issue a report to the Con- pending before it and decide the same as speedily as

gress setting forth the reasons for such inability,

possible. This paragraph shall not apply to common

(c) Al evidentiary proceedings conducted pursuant carriers by railroad subject to this chapter .

to this paragraph shall be completed, in a case

brought upon a complaint, within 1 year following the (8) Commission to determine lawfulness of new rates ; applifiling of the complaint, or, in a case brought upon the

cability to common carrier by railroad ; suspensions ; acCommission's initiative, within 2 years following the counts; hearing and basis of decision

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 Con- fecting 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 di- own 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 pursu- gether 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 chapterfinal 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 investigating such rate change upon a complaint that (9) Commission to investigate lawfulness of rates with resuch rate change constitutes a competitive practice spect to market dominance of common carrier by railwhich is unfair, destructive, predatory or otherwise

road ; conclusiveness of findings; suspensions

undermines competition which is necessary in the Following promulgation of standards under section

public interest. 1(5)(d) of this Appendix, whenever a rate of a common

(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 proceedof traffic and only if-

ing to investigate the lawfulness of such rate, deter-

(i) the rate increase or decrease is filed prior to mine whether the carrier proposing such rate has

July 1, 1980 ;

market dominance, within the meaning of section

(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 ; andcarrier 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

increase or decrease in excess of the limits set forth in (10) Shipper's choice of route to be observed

clause (iii) of subdivision (c) is unlawful or should be

In all cases where at the time of delivery of property

suspended. to any railroad corporation being a common carrier

(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

such hearing and the decision thereon, the Commis- more through routes and through rates shall have

sion shall require the railroads involved to keep an ac- been established as in this chapter provided to which

count 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 carri- carrier 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 transport it over the said line or lines and deliver the same

(15) Allowance for service or facilities furnished by shipper

to the next succeeding carrier or consignee according If the owner of property transported under this

to the routing instructions in said bill of lading: Pro- chapter directly or indirectly renders any service convided, however, That the shipper shall in all instances nected with such transportation, or furnishes any inhave the right to determine, where competing lines of strumentality used therein, the charge and allowance

railroad constitute portions of a through line or route, therefor shall be published in tariffs or schedules filed

over which of said competing lines so constituting a in the manner provided in this chapter and shall be no

portion of said through line or route his freight shall more than is just and reasonable, and the Commission

be transported .

may, after hearing on a complaint or on its own initiative, 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 instruc- order, 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 reg- above 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

be jointly and severally liable to the carrier thus de- The foregoing enumeration of powers shall not exprived of its right to participate in the haul of the elude any power which the Commission would otherproperty, 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

if it can show, the burden of proof being upon it, that

peak-period

demand for rail services; annual

before carrying the property it had no notice, by bill

report

of lading, waybill or otherwise, of the routing instrucWithin 1 year after February 5, 1978, the Commistions . In any judgment which may be rendered the

sron shall establish, by rule, standards and expeditious

plaintiff shall be allowed to recover against the de- based

on

seasonal,

establishment of railroad rates

fendant a reasonable attorney's fee to be taxed in the rail services.

v

,

Such standards

tandard or

and

peak-period

pprocedures

for

res shall be

case • designed to (a) provide sufficient incentive to shippers

(12) Direction of unrouted traffic by Commission

to reduce peak-period shipments, through reschedulWith respect to traffic not routed by the shipper, ing and advance planning; (b) generate additional revthe Commission may, whenever the public interest enues for the railroads; and (c) improve (I) the utilizaand a fair distribution of the traffic require, direct the tion of the national supply of freight cars, (ii) 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

another carrier, and is to be there delivered to another served by railroads . Following the establishment of

carrier. such standards and procedures, the Commission shall

(13) Disclosure or solicitation of information concerning

prepare and submit to the Congress annual reports on

unlawful; exceptions ation

the implementation of such rates, including recomshipm

Disclosure

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

person or corporation lawfully authorized by such (18) Expeditious procedures for separate rates for distinct

common carrier to receive information therefrom,

rail services

knowingly to disclose to or permit to be acquired by In order to encourage competition, to promote inany person or corporation other than the shipper or creased reinvestment by railroads, and to encourage

consignee, without the consent of such shipper or con- and 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

property tendered or delivered to such common carrier upon the request of any shipper or receiver of freight,

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 esor consignee, or which may improperly disclose his tablish, by rule, expeditious procedures for permitting

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

knowingly receive any such information which may be in accordance with the carrier's cash-outlays for such

so used: Provided, That nothing in this chapter shall services and the demand therefor, and (b) enable shipbe construed to prevent the giving of such information pers and receivers to evaluate all transportation and

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 a Territory, ' i_rt the exercise oF -his of any State

authorized common carrier by railroad subject to this chapter powers' or to any officer other

for

suspected d

the

c

prosecution

may file with the Commission a notice of intention to

of

persons

seeking

charged

such information with r cucsp

rime; or Irn

file a schedule stating a new rate, fare, charge, classififor

matioation given by a common carrier another

c i-- cation, regulation, or practice whenever the implemene t s duly authorized the f adtation of the proposed schedule would require a total

ju i

g mutual traffic

a agent, for the purpose o e

capital investment of $1,000,000 or more, individually

of

business o f s c

h a ccounts in the ordinary course

or collectively, by such carrier, or by a shipper, receiver, or agent thereof, or an interested third party . The

(14) Penalty for violation of preceding provisions filing shall be accompanied by a sworn affidavit setAny person, corporation, or association violating any ting forth in detail the anticipated capital investment

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 of- may 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 relation- title I, § 10(a)-(d), 54 Stat. 911, 912; Feb . 5, 1976, Pub .

ships between commodities, L. 94-210, title II, §§ 201, 202(c)-(e), 203(a), 206, title

ps

ports, etc., and effect on

III, 1302, 90 Stat. 34-37, 39, 41, 48; Oct. 19, 1976, Pub .

competitive position of shippers or consignees by proL. 94-555, title II, § 220(m), 90 Stat. 2630; Nov. 8, 1978,

posed rate increase or decrease

Pub. L. 95-607, title IV, § 401, 92 Stat . 3067.)

The Commission shall, in any proceeding which involves a proposed increase or decrease in railroad

915a. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17, rates, specifically consider allegations that such in1978, 92 Stat. 1466, 1470

crease or decrease would change the rate relationships

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 sub-

(1) "Rates" defined

stantially supported on the record, it shall take such

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

tions, and practices relating thereto .

either within or outside such proceeding, to investigate the lawfulness of such change or effect .

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 consider-

erations

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

(3) Competition between carriers of different modes of trans- time for comment limited so as to meet the required

portation; nonapplicability to common carriers by rail- date for establishment and subject to future amendroad subject to chapter

ment or revocation), shall be designed to facilitate fair

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 establishmentthe 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

(2) Ratemaking criteria ; nonapplicability to common carriers
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 re- prescribed for interim intrastate rate increases as prolieved from the provisions of section 4 of this Appen- vided 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 au-

(c) Final rate determination ; hearings, burden of proof; genthority results in discrimination

eral ratemaking criteria; refunds, interest rate

If a State authority denies in part such a petition

The Commission shall within sixty days from the

filed with it by such carrier or group- of carriers,

date of establishment of interim rates under subparawithin 60 days from the presentation thereof, the

graph (b) of this paragraph commence hearings for

Commission shall, within 30 days of the filing of a

the purpose of making the final rate determination .

verified petition by such carrier or group of carriers

The Commission shall then proceed to make such

relating to the intrastate rates involved, act upon such

final rate determination with the carrier having the

petition by applying the criteria of section 13(4) of

this

burden of proof. In making such determination, the

Appendix .

Commission may take into account all factors appro- (D) Stay of refund pending final order under section 13(4)

priate to ratemaking generally under this chapter and

Nothing in subparagraph (A) or (B) shall be conshall determine such final rates under the standards

strued to abrogate the authority of the Commission

and limitations applicable to ratemaking generally

under section 13(4) of this Appendix and in the event

under this chapter . If the increases in rates finally aua carrier or group of carriers subject to a refund rethorized by the Commission are less than the inquirement under subparagraph (A) or (B) files a peticreases in rates initially made effective, the carrier or

tion under section 13(3) of this Appendix, the refund

carriers shall, subject to such tariff provisions as the

requirement shall be stayed pending final order of the

Commission shall deem sufficient, make such refunds

Commission under section 13(4) of this Appendix .

(in the amount by which the initially increased rate

collected exceeds the finally authorized increased

(E) Reasonable level for increased freight rates ; preservation

rate) as may be ordered by the Commission, plus a rea-

of market patterns and relationships and relationsonable rate of interest as determined by the Commisp port relationsion. Nothing contained in this paragraph shall limit

ships

or otherwise affect the authority of the Commission

Any increased freight rates authorized shall not

to authorize or permit to become effective any inexceed a reasonable level by types of traffic, commodcrease in rates other than the increases herein specisties, or commodity groups and shall preserve existing

fled .

market patterns and relationships and present port relationships by increase [increased] limitations within

(d) Adjustment of intrastate rates and between the major districts to the extent possible

(A) Duty of State authority ; petitions; interim rates; refunds,

without authorizing unreasonable increases in any disinterest

trict .

The State authority having jurisdiction over peti-

(Feb . 4 . 1887, ch. 104, pt . I, 4 15a, as added Feb. 28,

tions for intrastate rate increases by any carrier or 1920, ch. 91, § 422, 41 Stat. 488, and amended June 16,

group of carriers subject to this chapter shall, within 1933, ch. 91, title II, § 205 . 48 Stat. 220; Aug. 9, 1935,

60 days of the filing of a verified petition for such in- ch. 498, 4 1, 49 Stat . 543; Sept. 18, 1940, ch. 722, title I,

creases based upon increases in expenses of such carri- 4 10(e), 54 Stat. 912 ; Aug. 12, 1958, Pub. L. 85-625. 16 .

err as a result of any increases in taxes under the Rail- 72 Stat. 572; July 10, 1973, Pub . .L . 93-69, title II, g 201,

road Retirement Tax Act, as amended [26 U.S.C . 3201

87 Stat. 166 ; Feb . 5, 1976, Pub. L. 94-210, title II,

et seq.], occurring on or before January 1, 1975 . or as a f4 203(b), 205, 90 Stat . 39, 41 .)

result of the enactment of the Railroad Retirement

Amendments of 1973, act upon said petition . Such 015b. Repealed. Pub. L . 95-473, § 4(b), Oct. 17, 1978,

State authority may grant an interim rate increase or

92 Stat. 1466

a final rate increase. If such State authority grants

Section, acts June 16, 1933, ch. 91, title II, 4 206, 48 any interim rate increases, it shall thereafter investiStSection,

Oct.

June

93 6 h title V. # 20 56 gate and determine the reasonableness of such inStat.220;

957; Dec Oct. 30,

21,

1969, Pub . 91tit e, title 11, . § 04 4 , 5 6 creases and modify them to the extent required by applicable law. To the extent that any such interim in- Dec. 30, 1969, 83 Stat . 730, related to discontinuance of

creases are reduced as a result of the action of a State

collection of excess income, liquidation of general railauthority, the carrier or carriers shall make such reroad contingent fund, distribution of moneys, and

funds (in the amount by which the initially increased

computation of tax liabilities. For disposition of this

rate collected exceeds the finally authorized increased

section in revised Title 49, Transportation, see Table

rate) as may be ordered by such State authority, plus

at beginning of Title 49. See, also, notes following

a reasonable rate of interest as determined by the

Table.

State authority.

016. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17,

(B) Action by Commission where complete denial or absence

1978, 92 Stat. 1466, 1470

of timely action by State authority ; grant of interim rates

by Commission ; final rate determination by State author-Section repealed subject to an exception related to

ity, refunds transportation of oil by pipeline. For disposition of

If a State authority denies in toto such a petition this section in revised Title 49, Transportation, see

filed with it by such carrier or group of carriers seek- Table at beginning of Title 49 . See, also, notes following relief regarding such intrastate rate increases or Ing Table .

does not act finally on such petition within 60 daysPrior to repeal, section read as follows :

1
Page 551

TITLE 49, APPENDIX-TRANSPORTATION § 16

§ 16. Orders of Commission and enforcement thereof services in excess of those applicable thereto under

(1) Award of damages

the tariffs lawfully on file with the Commission .

If, after hearing on a complaint made as provided in (h) The provisions of this paragraph shall extend to

section 13 of this Appendix, the Commission shall de- and embrace cases in which the cause of action actermine that any party complainant is entitled to an crued prior to June 7, 1924, as : well as cases in which

award of damages under the provisions of this chapter the cause of action accrues thereafter, except that acfor a violation thereof, the Commission shall make an tions- at law begun or complaints filed with the Comorder directing the carrier to pay to the complainant mission against carriers subject to this chapter for the

the sum to which he is entitled on or before a day recovery of overcharges where the cause of action acnamed. crued on or after March 1, 1920, shall not be deemed

(2) Proceedings in courts to enforce orders ; costs; attorney's

to be barred under subdivision (c) of this paragraph if

fee

such actions shall have been begun or complaints filed

If a carrier does not comply with an order for the

prior to June 7, 1924, or within six months thereafter .

payment of money within the time limit in such order,

(i) The provisions of this paragraph (3) shall extend

the complainant, or any person for whose benefit such

to and embrace all transportation of property or pasorder was made, may file in the district court of the

sengers for or on behalf of the United States in conUnited States for the district in which he resides or in nection with any action brought before the Commiswhich is located the principal operating office of the

sion or any court by or against carriers subject to this

carrier, or through which the road of the carrier runs, chapter: Provided, however, That with respect to such

or in any State court of general jurisdiction having ju- transportation of property or passengers for or on

risdiction of the parties, a complaint setting forth behalf of the United States, the periods of limitation

briefly the causes for which he claims damages, and herein provided shall be extended to include three

the order of the Commission in the premises . Such years from the date of (A) payment of charges for the

suit in the district court of the United States shall transportation involved, or (B) subsequent refund for

proceed in all respects like other civil suits for dam- overpayment of such charges, or (C) deduction made

ages, exceptt that on the trial of such suit the findings under section 66 of this Appendix, whichever is later .

and order of the Commission shall be prima facie evidence of the facts therein stated, and except that the (4) Joinder of parties ; process ; judgment

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 rea- ers 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

(3) Limitation of actions defendants in any district where any one of such joint

(a) All actions at law by carriers subject to this chap- plaintiffs could maintain such suit against any one of

ter for recovery of their charges, or any part thereof, such joint defendants; and service of process against

shall be begun within three years from the time the any one of such defendants as may not be found in the

cause of action accrues, and not after .

district where the suit is brought may be made in any

(b) All complaints against carriers subject to this district where such defendant carrier has its principal

chapter for the recovery of damages not based on operating office . In case of such joint suit the recovovercharges shall be filed with the Commission within ery, if any, may be by judgment in favor of any one of

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 para- liable 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 pre- provided 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 suffi-

(e> The cause o action in respect of shipment of

cient notice upon the several carriers parties thereto.

deepe shall, for the purposes

on

of this

delivery

b

Such service of notice may be made by mail to such atthereof

delivery or tender

of

torney in fact or carrier at the address shown in the

hereof

d

by

to

the

accrue

carrier, and not after.

(f) A complaint for the enforcement of an order of

tariff or schedule .

the Commission for the payment, of money shall be

filed in the district court or the State court within one

(6) Suspension or modification of orders

year from the date of the order, and not after .

The Commission shall be authorized to suspend or

(g) The term "overcharges" as used in this section modify its orders upon such notice and in such

shall be deemed to mean charges for transportation manner as it shall deem proper .
§ 16a

TITLE 49, APPENDIX-TRANSPORTATION Page 552

(7) Compliance with orders (Feb . 4, 1887, ch. 104, pt. I, § 16, 24 Stat. 384 ; Mar. 2,

It shall be the duty of every common carrier, its 1889, ch . 382, § 5, 25 Stat. 859 ; June 29, 1906, ch. 3591,

agents and employees, to observe and comply with § 5, 34 Stat. 590; June 18, 1910, ch . 309, § 13, 36 Stat.

such orders so long as the same shall remain in effect. 554; Mar. 3, 1911, ch. 231, § 291, 36 Stat. 1167; Oct. 22,

(8) Failure of carrier or officer to obey orders ; penalty

1913, ch. 32, 38 Stat. 219; Feb. 28, 1920, ch. 91,

43

Any carrier, any officer, representative, or agent of a Stat 633 ;

.

633; Aug.

41 S

9,

1

1935,

491,

ch

.

498,

8 J

1,

7,

49

1924,

Stat

. ta ch.

543;

325,

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

The forfeiture provided for in this chapter shall be added June 29, 1906, ch. 3591, § 6, 34 Stat. 592, related

payable into the Treasury of the United States, and to rehearings by Commission. See section 17 of this

shall be recoverable in a civil suit in the name of the Appendix .

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),

(10) United States attorneys to prosecute for forfeitures ;

June 3, 1980, 94 Stat. 427

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 interests in investigations made by it or cases or proceed- (1) Divisions of Commission; organization ; composition

ings pending before it, whether at the Commission's The Commission is authorized by its order to divide

own instance or upon complaint, or to appear for or the members thereof into as many divisions (each to

represent the Commission in any case in court; and consist of not less than three members) as it may

the expenses of such employment shall be paid out of deem necessary, which may be changed from time to

the appropriation for the Commission .

time . Such divisions shall be designated, respectively,

(12) Proceedings to enforce orders other than for payment of

division one, division two, and so forth, or by a term

money

descriptive of the principal subject, work, business, or

If any carrier fails or neglects to obey any order of

function assigned or referred to such divisions . The

the Commission other than for the payment of

Commission may designate one or more of its divisions

money, while the same is in effect, the Interstate

as appellate divisions. Any Commissioner may be asCommerce Commission or any party injured thereby,

signed to such division or divisions as the Commission

or the United States, by its Attorney General, may

may direct, and the senior in service of the Commisapply to any district court of the United States of

sioners constituting a division shall act as chairman

competent jurisdiction for the enforcement of such

thereof unless otherwise directed by the Commission.

order . If, after hearing, such court determines that

When a vacancy occurs in any division or when a Comthe order was regularly made and duly served, and

missioner because of absence, or other cause, is unable

that the carrier is in disobedience of the same, such

to serve thereon, the Chairman of the Commission or

court shall enforce obedience to such order by a writ

any Commissioner designated by him for that purpose

of injunction or other proper process, mandatory or may serve temporarily on such division until the Comotherwise, to restrain such carrier, its officers, agents,

mission otherwise orders .

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

(13) Copies of schedules, tariffs, contracts, etc ., kept as public work, business, or functions under any provision of

records ; evidence law (except matters required to be referred to joint

The copies of schedules and classifications and tar- boards by section 305 of this Appendix, and except

iffs of rates, fares, and charges, and of all contracts, functions vested in the Commission under this secagreements, and arrangements between common carri- tion), or any matter which shall have been or may be

ers filed with the Commission as herein provided, and referred to it by Congress or by either branch thereof,

the statistics, tables, and figures contained in the be assigned or referred to any division, to an individannual or other reports of carriers made to the Com- ual Commissioner, or to a board to be composed of

mission as required under the provisions of this chap- three 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 Commis- supplement, 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 re- such 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,

received in evidence with like effect as the originals .

or functions relating to the lawfulness of rates, fares,

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

(3) Conduct of proceedings; seal; oaths ; quorum ; rules

postponed pending final determination thereof. When

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,

Secretary of the Commission (or any member of a

orders, and requirements

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.

Where application for rehearing, reargument, or re- and such rules (limiting and defining the issues and

consideration of a decision, order, or requirement of a pleadings upon review) as the Commission may adopt

division, an individual Commissioner, or board is made in conformance with section 557(b) of such title 5 . The

in accordance with the provisions of this section and Commission may, in its discretion and on such terms

the rules and regulations of the Commission, and the and conditions as it may prescribe, authorize duly desdecision, order, or requirement has not yet become ef- ignated employee boards to perform functions under

fective, the decision, order, or requirement shall be this paragraph of the same character as those which

stayed or postponed pending disposition of the matter may be performed by a duly designated division of the

by the Commission or appellate division ; but otherwise Commission (other than the decision of any appeal

the making of such an application shall not excuse under this paragraph which may be further appealed

any person from complying with or obeying the deci- to the Commission).

sion, 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

order of the Commission, become effective 30 days after it is served on the par-

(9) Administrative hearing and review procedures for decities thereto, unless the Commission provides for such

sions, orders, reports, etc .;relief; applicability

decision, order, or requirement, or any applicable rule,

(a) Whenever the term "hearing" is used in this

to become effective at an earlier date . Any interested

chapter, such term shall be construed to include an

party to a decision, order or requirement of a duly desopportunity for the submission of all evidence in writignated division of the Commission may petition the

Commission for reten form, followed by an opportunity for briefs, writrehearing, reargument, or rules a

limitations

other

statements, or conferences of the parties, such f

consideration, subjectt to such rules and limittions as

conferences to be chaired by a division, an individual

in g decision, orderestablish,

the Commission

Commissioner, an administrative law judge, an em- matter

of

general transportation ,

ar requirement impn e; or if a

ployee board, or any other designated employee of the

ge s n

Commission

finds that clear and convincing new evidence has been

(b) With respect to any matter involving a common

presented or that changed circumstances exist which

recarrier by railroad subject to this chapter, whenever

quirement,

materially affect such decision, order, or rethe Commission assigns the initial disposition to any

sio , order, the Commission may reconsider such

discreof such matter before the Commission to an adminision, or requirement, and it may, in its dicretrative 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

judge, Commissioner, board, division, or panel shall-

process

(1) complete all evidentiary proceedings with rethe issue its

which

t

grants

not

the

than 120 for after

to such matter within 180 days after its assignthe date on wich it rants te application for

and

sideration

(ii) with respect to any matter so assigned which

(e) The Commission may, in its discretion, extend

involves written submissions or the taking of testiany time period set forth in this paragraph for a

mony at a public hearing, submit in writing to the period of not more than 90 days, if a majority of the

Commission, within 120 days after the completion of

Commissioners, by public vote, agree to such extenall evidentiary proceedings, an initial decision, sion

. The Commission shall submit an annual report

report, or order containing-

in writing to each House of Congress setting forth

(A) specific findings of fact ;

each extension granted pursuant to this subdivision

(B) specific and separate conclusions of law ; (classified by the type of proceeding involved), and

(C) a recommended order; and

stating the reasons for each such extension and the

(D) any justification in support of such findings duration thereof.

of fact, conclusions of law, and order . (f) In extraordinary situations in which an extension

The Commission, or a duly designated division there- granted pursuant to subdivision (e) is not sufficient to

of, may, in its discretion, void any requirement for an allow for completion of necessary proceedings, the

initial decision, report, or order, and, in appropriate Commission may, in its discretion, grant a further excases, may direct that any matter shall be considered tension ifforthwith 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 sub- such 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

subdivision (d) or (e) .

initiative, on grounds of material error, new evidence,

(c) The Commission, or a duly designated division

or substantially changed circumstancesthereof, may, upon its own initiative, and shall, in any

(i) reopen any proceeding;

case in which an appeal is filed under subdivision (b), (ii) grant rehearing, reargument, or reconsiderreview the matter upon the same record or upon the ation with respect to any decision, order, or requirebasis of a further hearing . Any such appeal shall be ment; and

considered and acted upon by the Commission, or a (iii) reverse, modify, or change any decision, order,

duly designated division thereof, within 180 days after or requirement.

the date on which such appeal is filed. Any such deci- The Commission may establish rules allowing interestsion, report, or order shall be stayed pending the de- ed parties to petition for leave to request reopening
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 to enforce, enjoin, suspend, or set cluded by the Commission with administrative finality aside orders of the Commission.

within 3 years after the date on which such proceed- (i) Notwithstanding the provisions of paragraphs (5),

ing is instituted . Any such proceeding which is not so (6), (7), and (8), of this section, the provisions of this

concluded by such date shall automatically be disapply

shall govern the disposition of, and shall missed

apply only to, any matter before the - Commission

which involves a common carrier by railroad subject to (b) Within 1 year after February 5, 1976, the Comthis 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 Commis-cedures; limitations ; definition

sion, a division thereof, any other group of Commis- Whenever 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 individ- a 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

copies thereof) to such _committee, or submit a report as a member of a group which-takest

statesuch action

in writing to . such committee stating the reason why

nt

does not participate action c

shall

such action

that

such

individual

such documents have not been so submitted, and the

did not participate. Each indivIu

dipart indicate

participates anticipated date on which they will be submitted . If viduaLwho participates

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

cordance with Federal law . Commission for purposes of complying with the pre-

(10) Judicial relief from decisions, etc ., upon denial or other ceding sentence

. This paragraph shall not apply to

documents 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,

orders of the Commission, but not otherwise .

40 Stat. 270 ; Feb . 28, 1920, ch. 91, §1430-432, 41 Stat.

(11) Reference of administrative matters to examiners

492, 493 ; Feb. 28, 1933, ch . 136, 47 Stat. 1368; Aug. 9,

Any matter arising in the administration of chapter 1935, ch

. 498, 11, 49 Stat. 543 ; Sept . 18, 1940, ch. 722,

87-247

8 of this Appendix as to which a hearing is to be held

75 t §

1517 ;

Feb. ,

1976,

6114, 1961, Pub. L.

title III

,

may be referred to an examiner of the Commission, 75

30 Fe 5 Pub. L. 94-210, ,

for action thereon, subject to the conditions and limi- §1301, 303, 90 Stat

. 47, 48, 50; Oct. 19, 1976, Pub . L .

tations provided in this section in the case of reference 94-555, title II, § 220(j), 90 Stat

. 2630 ; S . Res . 4, Feb. 4,

of work, business or functions, as to which a hearing is 1977

; Nov. 8, 1978, Pub. L. 95-611, 15, 92 Stat . 3090.)

to be held, to an individual Commissioner or board .

(12) Intervention of representatives of employees

$18. Repealed . Pub

. ,1470

1 95-473, § 4(b), (c), Oct_ 17,

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

(13) Admission to practice before Commission Table at beginning of Title 49. See, also, notes followThe Commission is authorized to promulgate reason- ing Table .

able rules and regulations relating to admission to

Prior to repeal, section read as follows :
919

TITLE 49, APPENDIX-TRANSPORTATION Page 556

918. Employees; appointment and compensation; witness value of the property owned or used by any such elecfees; expenses

tric railway subject to the provisions of this chapter

(1) Commissioners' salaries; secretary and employees; comwhenever in its judgment such action is desirable in

witness fees

the public interest . To enable the Commission to make

pensation ; such investigation and report, it is authorized to

Each commissioner shall receive an annual salary, employ such experts and other assistants as may be

payable in the same manner as the judges of the necessary . The Commission may appoint examiners

courts of the United States . The Commission shall ap- who shall have power to administer oaths, examine

point a secretary. The Commission shall have author- witnesses, and take testimony. The Commission shall,

ity to employ and fix the compensation of such other subject to the exception hereinbefore provided for in

employees as it may find necessary to the proper per- the case of electric railways, make an inventory which

formance of its duties . Until otherwise p rovided . b y shall list the property of every common carrier subject

law, the Commission may hire suitable offices for its to the provisions of this chapter in detail, and show

use, and shall have authority to procure all necessary the value thereof as hereinafter provided, and shall

office supplies . Witnesses summoned before the Com- classify the physical property, as nearly as practicable,

mission shall be paid the same fees and mileage that in conformity with the classification of expenditures

are paid witnesses in the courts of the United States . for road and equipment, as prescribed by the Inter-

(2) Expenses of Commission

state Commerce Commission .

All of the expenses of the Commission, including all

(b) Cost of property ; elements considered in determination; necessary expenses for transportation incurred by the

commissioners, or by their employees under their

gifts , grants, etc .

orders, in making any investigation, or upon official

First. In such investigation said Commission shall asbusiness in any other places than in the city of Wash- certain and report in detail as to each piece of properington, shall be allowed and paid on the presentation ty, other than land owned or used by said. common

of itemized vouchers therefor approved by the chair- carrier for its purposes as a common carrier, the origiman of the Commission. nal cost to date, the cost of reproduction new, the cost

(Feb. 4, 1887, ch . 104, pt I, ; ; 17, 18, 24, 24 Stat. 388,

of reproduction less depreciation, and an analysis of

387; Mar . 2, 1889, ch . 382, § 7, 25 Stat. 861 ; June 29,

the methods by which these several costs are obtained,

1906, ch. 3591, 4 8, 34 Stat . 595 ; Aug . 9, 1917, ch. 50,

and the reason for their differences, if any . The Com19 1-3, 40 Stat. 270; Feb . 28, 1920, ch. 91, H 433, 440, 41

mission shall in like manner ascertain and report sepal

Stat . 493, 497.)

rately other values, and elements of value, if any, of

the property of such common carrier, and an analysis

919. Repealed . Pub. L. 95-473, § 4(b), (c), Oct. 17,

of the methods of valuation employed, . and of the reasons

92 Stat. 1466, 1470

sons for any differences between any such value and

each of the foregoing cost values .

Section repealed subject to an exception related to Second. Such investigation and report shall state in

transportation of oil by pipeline. For disposition of

detail and separately from improvements the original

this section in revised Title 49, Transportation, see

cost of all lands, rights of way, and terminals owned or

Table at beginning of Title 49 . See, also, notes follow- used for the purpose of a common carrier, and ascering Table.

tained as of the time of dedication to public use, and

Prior to repeal, section read as follows: the present value of the same .

Third . Such investigation and report shall show sep919. Office and sessions

arately the property held for purposes other than

The principal office of the Commission shall be in

those of a common carrier, and the original cost and

the city of Washington, where its general sessions

present value of the same, together with an analysis of

shall be held; but whenever the convenience of the

the methods of valuation employed .

public or of the parties may be promoted or delay or Fourth . In ascertaining the original cost to date of

expense prevented thereby, the Commission may hold

the property of such common carrier the Commission,

special sessions in any part of the United States . It

in addition to such other elements as it may deem necmay, by one or more of the commissioners, prosecute

essary, shall investigate and report upon the history

any inquiry necessary to its duties, in any part of the

and organization of the present and of any previous

United States, into any matter or question of fact percorporation operating such property; upon any intaining to the business of any common carrier subject

creases or decreases of stocks, bonds, or other securito the provisions of this chapter .

ties, in any reorganization; upon moneys received by

(Feb. 4, 1887, ch . 104, pt. I, 19, 24 Stat. 386 ; Aug

. 9, any such corporation by reason of any issues of stocks,

498, 4 1, 49 Stat . 543 .)

bonds, or other securities; upon the syndicating, bank1935, ch. ing, and other financial arrangements under which

919x. Repealed . Pub. L. 95-473, § 4(b), (c), Oct. 17,

such issues were made and the expense thereof; and

, 92 Stet. 1466, 1470

upon the net and gross earnings of such corporations ;

1978, and shall also ascertain and report in such detail as

Section repealed subject to an exception related to

may be determined by the Commission upon the extransportation of oil by pipeline

. For disposition of penditure of all moneys and the purposes for which

this section in revised Title 49, Transportation, see

the same were expended.

Table at beginning of Title 49 . See, also, notes follow-

Fifth. The Commission shall ascertain and report

Ing Table .

the amount and value of any aid, gift, grant of right of

Prior to repeal, section read as follows:

way, or donation, made to any such common carrier,

or to any previous corporation operating such proper919a Valuation of property of carriers

ty, by the Government of the United States or by any

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, in- common 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 sub- States, or by any State, county, or municipal governject to the provisions of this chapter, except any ment, and the amount of money derived from the sale

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

system of transportation; but the Commission may in present time, also, the amount and value of any conits discretion investigate, ascertain, and report the cession and allowance made by such common carrier
Page 557

TITLE 49, APPENDIX-TRANSPORTATION 919a

to the Government of the United States, or to any by registered mail or by certified mail to the said carriState, county, or municipal government in consider- er, the Attorney General of the United States; the

ation of such aid, gift, grant, or donation, governor of any State in which the property so valued

(c) Investigation ; procedure and forms is located, and to such additional parties as the ComExcept as herein otherwise provided, the Commasmission may prescribe, stating the valuation placed

sion shall have power to prescribe the method of proand shall allow thirty sdays

of propertyt of said carrier,

cedure to be followed in the conduct of the investigand shall al ith days s which to file a

protest i

sef of

tion, the form in which the results of the valuation

the same with the Commission . If no is filed

shall be submitted, and the classification of the ele- within thirty days, said valuation shall become final as

ments that constitute the ascertained value, and such

of the date thereof.

investigation shall show the value of the property of (i) Protests; hearings ; changes in valuations ; final valuation

every common carrier as a whole and separately the

and classification

value of its property in each of the several States and If notice of protest is filed the Commission shall fix

Territories and the District of Columbia, classified and a time for hearing the same, and shall proceed as

in detail as herein required.

promptly as may be to hear and consider any matter

(d) Time for beginning investigation; reports to Congress relative and material thereto which may be presented

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

session until completed .

become final, it shall make such changes as may be

(e) Aid of carrier required; rules and regulations ; inspection

necessary, and shall issue an order making such corrected 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

property, and its accounts, records, and memoranda (j) Effect of evidence as to values; modification of orders

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 direct- fixed by the Commission, evidence shall be introduced

ed and required to cooperate with and aid the Com- regarding 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 sec- dence 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,

(f) Valuation of extensions and improvements ; revisions; re- modify, amend or rescind any order which it has made

poiinvolving said final value, and shall report its action

Upon completion of the original valuations herein

thereon to said court within the time fixed by the

provided for, the Commission shall thereafter keep o

Court.

its

the

order, such altered,

alter, modify,

amended

itself informed of all new construction, extensions, im- order shall take the

,

a original ord

modified, or der comprovements, retirements, or other changes in the con- pl

plaained of

and

place

shall

th

be

e

judgme rendered thereon as dition, quantity, use, and classification of the property though made by the Commission in the first instance.

of all common carriers as to which original valuations If the original order shall not be rescinded or changed

have been made, and of the cost of all additions and by the Commission, judgment shall be rendered upon

betterments thereto and of all changes in the invest- such 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 Infor-

ance 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, classifiea- ers 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 Commis-

(g) Reports and information to be furnished by carriers sion such carrier, receiver, or trustee shall forfeit to

To enable the Commission to carry out the provi- the United States the sum of $500 for each such ofsions of paragraph (f) of this section, every common fense and for each and every day of the continuance

carrier subject to the provisions of this chapter shall of such offense, such forfeitures to be recoverable in

make such reports and furnish such information as the same manner as other forfeitures provided for in

the Commission may require.

section 16 of this Appendix .

(h) Notice of completion of tentative valuation ; protests; fi- (1) Mandamus to compel compliance with law

nality 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

carrier, as herein directed, and before such valuation Commission, alleging a failure to comply with or a vioshall become final, the Commission shall give notice lation of any of the provisions of this section by any
§ 20

TITLE 49, APPENDIX-TRANSPORTATION Page 558

common carrier, to issue a writ or writs of mandamus ties, including maintenance-of-way, maintenance of

commanding such common carrier to comply with the equipment (locomotive and car), transportation

provisions of this section. (train, yard and station, and accessorial services),

(Feb. 4, 1887, ch. 104, pt. I, § 19a, as added Mar. 1,

and general and administrative expenses; and

1913, ch . 92, 37 Stat . 701, and amended Feb. 28, 1920,

(iii) indirect cost accounts for determining fixed,

ch. 91, § 433, 41 Stat. 493 ; June 7, 1922, ch. 210, § 11, 2,

common, joint, and constant costs, including the cost

42 Stat . 624 ; June 16, 1933, ch . 91, title II, §§ 207, 208,

of capital, and the method for the assignment of

48 Stat. 221; Aug . 9, 1935, ch . 498, § 1, 49 Stat . 543 ;

such costs to various functions, services, or activities.

June 11, 1960, Pub. L . 86-507, § 1(38), 74 Stat. 202 .)

(c) The accounting system established pursuant to

this paragraph shall be in accordance with generally

§ 20. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17, accepted accounting principles uniformly applied to

1978, 92 Stat. 1466, 1470

all common carriers by railroad subject to this chapter, 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

(1) Reports from carriers and lessors economic principles. The Commission should attempt,

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.

associations specific and full, true, and correct answers (d) In order that the accounting system established

to all questions upon which the Commission may

pursuant to this paragraph continue to conform to

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 objecshall give an account- of the affairs of the carrier, tives set forth in this section, the Commission shall pelessor, or association in such form and detail as may be riodically, but not less than once every 5 years, review

prescribed by the Commission .

such accounting system and revise it as necessary .

(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 Commis- with any person, firm . . association, corporation, or

sion . Such periodical or special reports as may be re-institution, 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

mission so requires .

The Commission shall, as soon as practicable, precoat . and revenue accounting and reporting

scribe for carriers the classes of property for which de-

(3)

preciation charges may properly be included under opsystem

Uniform

for all an d

chapter,f promulgation

me carriersc

re

by inroad by

regulations a

subject

ec to to

erating expenses, and the rate or rates of depreciation

thiss

which shall be charged with respect to each of such

dures; effective date; criteria; review and revision of 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

establishing fair and reasonable rates, and other regu-

records, etc., by Commission or agents

latory areas of responsibility, the Commission shall The Commission may, in its discretion, prescribe the

identify and define the following items as they pertain forms of any and all accounts, records, and memoranto each facet of rail operations: da to be kept by carriers and their lessors, including

(i) operating and nonoperating revenue accounts ; the accounts, records, and memoranda of the move-

(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, ac- to 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 con- deemed 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 car- thousand 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 inspec- representative thereof, who shall fail to make and file

tion and examination, to any duly authorized special 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 retimes have authority to inspect and copy any and all spect thereto .

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, memo- ment 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 fur- States 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 re- of 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 specif- knowingly 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,

records, reports, etc (8) "Keep" and "kept" defined

(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

mission, or to submit any accounts, books, records, receiver or trustee of such carrier; the term "lessor"

memoranda, correspondence, or other documents to means a person owning a railroad, a water line, or a

the commission or any of its authorized agents, ac- pipe line, leased to and operated by a common carrier .

countants, 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

which such failure or refusal continues .

chapter which performs any service, or engages in any

(b) Any person who shall knowingly and willfully activities, in connection with any traffic, transportamake, 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 memoran- The 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

ingly and willfully destroy, mutilate, alter, or by any Commission, alleging a failure to comply with or a vioother means or device falsify the record of any such lation of any of the provisions of said Act to regulate

accounts, records, or memoranda, or who shall know- commerce or of any Act supplementary thereto or

ingly and willfully neglect or fail to make full, true, amendatory thereof by any common carrier, to issue a

and correct entries in such accounts, records, or writ or writs of mandamus commanding such common
§ 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,

(10) Special agents or examiners

be held to be a violation of section 10 of this AppenAnd to carry out and give effect to the provisions of

dix ; and any tariff schedule which may be filed with

said Acts, or any of them, the Commission is authorthe Commission pursuant to such order shall contain

ized to employ special agents or examiners who shall

specific reference thereto and may establish rates

have power to administer oaths, examine witnesses, varying with the value so declared and agreed upon ;

and receive evidence.

and the Commission is empowered to make such order

in

(11) Liability of initial and delivering carrier for loss ; limits-

cases where rates dependent upon and varying with

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 of lading of any remedy or right of action which he

bill of lading therefor, and shall be liable to the lawful 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, rail- against the delivering carrier shall be brought, and

road, or transportation company to which such prop- may be maintained, if in a district court of the United erty may be delivered or over whose line or lines such States, only in a district, and if in a State court, only

property may pass within the United States or within in a State through or into which the defendant carrier an adjacent foreign country when transported on a

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, regula- soever shall exempt such common carrier, railroad, or

transportation company from the liability hereby imtion, or otherwise a shorter period for the filing of

posed ; and any such common carrier, railroad, or claims than nine months, and for the institution of

transportation company so receiving property for

suits than two years, such period for institution of

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 ;

country, or for transportation wholly within a Terri- graph (12) of this section the delivering carrier shall

tory, or any common carrier, railroad, or transporta- be construed to be the carrier performing the linetion company delivering said property so received and haul service nearest to the point of destination and

transported shall be liable to the lawful holder of said not a carrier performing merely a switching service at

receipt or bill of lading or to any party entitled to re- the point of destination : And provided further, That

cover thereon, whether such receipt or bill of lading the liability imposed by this paragraph shall also

has been issued or not, for the full actual loss, damage, apply, in the case of property reconsigned or .diverted

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

whose line or lines such property may pass within the (12) Recovery by initial or delivering carrier from connecting

United States or within an adjacent foreign country

carrier

when transported on a through bill of lading, notwith- The 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

§ 7 1 34 pt. 24b. at

u 193, the initial or delivering carrier shall be the same as 1906,

,

4 887

c

3591,

at .

93 Feb. 25, 1909,

h that of such carrier by water : Provided, however, That 35

t 648 ; June

un

18, 309, § 14, 36

a

. 555;

1916, the provisions hereof respecting liability for full March. 301, 39 Stat 4, . 441 ;

1915, ch 118, 1910,

,

17 Feb. 3

Stat

1920, ch at . t . 91,

. 1196 § ; Aug.

§§ 9, 1

1555

916, actual loss, damage, or injury, notwithstanding any

limitation of liability or recovery or representation or 41 Stat. 493, 494 ; July 3, 1926, ch . 761, 44 Stat. 835;

agreement or release as to value, and declaring any

Mar. 4, 1927, ch. 510, § 3, 44 Stat. 1448; Apr . 23, 1930,

such limitation to be unlawful and void, shall not ch. 208, 46 Stat. 251 ; Aug. 9, 1935, ch . 498, § 1, 49 Stat.

apply, first, to baggage carried on passenger trains or 543 ; Sept. 18, 1940, ch . 722, title I, § 13, 54 Stat . 916;

boats, or trains or boats carrying passengers ; second, June 3, 1948, ch . 386, 62 Stat. 295; Aug. 2, 1949 . ch. 379,

to property, except ordinary livestock, received for §§ 7-9, 63 Stat . 486 ; Feb . 5, 1976, Pub . L. 94-210, title

transportation concerning which the carrier shall III, § 307, 90 Stat. 55 .)

have been or shall be expressly authorized or required

by order of the Interstate Commerce Commission to § 20a. Repealed. Pub. L. 95-473, 9 4(b), (c), Oct. 17,

establish and maintain rates dependent upon the1978, 92 Stat. 1466, 1470

value declared in writing by the shipper or agreed

upon in writing as the released value of the property, Section repealed subject to an exception related to

in which case such declaration or agreement shall transportation of oil by pipeline. For disposition of

have no other effect than to limit liability and recov- this section in revised Title 49, Transportation, see
Page 561

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,

(1) "Carrier" defined

or other disposition, file with the Commission a certifAs 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 corpo-

hearings

ration organized for the purpose of engaging in trans- Upon receipt of any such application for authority

pdrtation by railroad subject to this chapter, or a the Commission shall cause notice thereof to be given

sleeping-car company which is subject to 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, and then only to (7) Jurisdiction of Commission as exclusive and plenary

the extent that, upon application by the carrier, and

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 lier 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 cor-

Nothing herein shall be construed to imply any

porate purposes, and compatible with the public inter- guaranty or obligation as to 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; proimpair its ability to perform that service, and (b) is

viso

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

(3) Scope of Commission's authority

the carrier issuing the same shall file with the ComThe 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

: Providpremises, and may from time to time, for good cause

ed, That in any subsequent funding of such notes the

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

(4) Form and contents of application ; oath and signature thereof.

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 Commis-

Any 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, shall be made under oath, signed and filed on quired, shall be void, if issued or assumed without

behalf of the carrier by its president, a vice president, such authorization therefor having first been obauditor, comptroller, or other executive officer having mined, or if issued or assumed contrary to any term or

knowledge of the matters therein set forth and duly condition of such order of authorization as modified

designated for that purpose 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 1

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

with any provision of this section relating to proce-

equipment-trust securities

dure and other matters preceding the entry of such It shall be lawful (any express provision contained in

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 provision of State law to the contrary notwithstand- ing), with the approval and 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 au-

to 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 of the court.

discretion, but need not, as a condition precedent to

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,

fected thereby

. It shall be unlawful for any officer or as the Commission may require shall have been sedirector 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 and the carrier shall give reasonable

respect of the negotiation, hypothecation, or sale of

semen

notice of

or

such

otherwise,

in such manner, by mail, adverany securities issued or to be issued by such carrier, or practicable and

may d ,

direct,

the

to

ho

holders

of

suchits

may find

to share in any of the proceeds thereof, or to partici- classes of securities and to such

other

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 modification1920, ch. 91, § 439, 41 Stat . 494, and amended Aug . 9,

(a) is within the scope of paragraph (1) of this sec1935, ch . 498, § 1, 49 Stat. 543 ; Aug. 2, 1949, ch. 739,

tion:

§ 10, 63 Stat. 487; July 24, 1965, Pub. L. 89-86, 11, 79

(b) will be in the public interest ;

Stat . 263.)

(c) will be in the best interests of the carrier, of

each class of its stockholders, and of the holders of

Pub. L. 95-473, § 4(b), (c), Oct. 17,

each class of its obligations affected by such modifi-

§ 20b . Repealed.

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, condiPrior to repeal, section read as follows :

tions, and amendments, if any) to the holders of each

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 communica- tion 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 con- debtedness 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 ad- be given only (any express or implied provision in any

dressed to a bank or trust company, approved by it, mortgage, indenture, deed of trust, note, or other in- which 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 (a) Where such security is pledged as security under a

and surplus of at least $2,000,000, and is a member of mortgage, indenture, deed of trust, or other instru- theFederal Reserve System. Any bank or trust compament, 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 the Commission may, in majority in principal amount of such evidences of sn- its discretion, rely upon such certification as conclu

debtedness, or (b) where such security secures an evi- sion. I f the

sshall

the result of

dence or evidences of indebtedness not issued pursu- s uch If

Commission shall find that as a

such

result

ubm

ant to such a mortgage, indenture, deed of trust, or

tion

s

has been assented

submission

to

proposed

by the

alteration

holders of

or

at least le 75 other instrument, by the holder or holders of such eviper centum of the aggregate principal amount or

dence or evidences of indebtedness ; and in any such

number of shares outstanding of each class of securi- case the Commission, in addition to the submission reties affected thereby (or as to any class (I) where 75

ferred to in paragraph (2) of this section, shall cause

per centum thereof is held by fewer than twenty-five the carrier in such manner as it shall direct to submit

holders, or (ii) which is entitled to vote for the elec- the proposed alteration or modification (with such

tion of directors of the carrier and the assents of the terms, conditions, and amendments, if any, as the

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

lication of a declaration to that effect by the carrier, security entitled to vote for the election of directors of

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

binding pursuant to the approval and authority of the of the Commission, the assent of the holder thereof to

Commission hereunder shall be binding upon each any proposed alteration or modification is within the

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

any trustee or other party to any instrument under purposes of this section, divide the securities to be afwhich any class of obligations shall have been issued fected by any proposed alteration or modification into

or by which it is secured, and when any alteration or such classes as it shall determine to be just and reamodification shall become and be binding the rights of sonable .

each such holder and of any such trustee or other

party shall be correspondingly altered or modified . (4) Modification of securities of carrier acting as guarantor,

(3) When class of securities affected; what constitutes outendorser, surety, or otherwise ; person deemed carrier

standing securities; assent to modification (a) Any authorization and approval hereunder of

For the purposes of this section a class of securities any alteration or modification of a provision of any

shall be deemed to be affected by any modification or class of securities of a carrier or of a provision of any

alteration proposed only (a) if a modification or alter- instrument pursuant to which a class of securities has

ation is proposed as to any provision of such class of been issued, or by which it is secured, shall be deemed

securities, or (b) if any modification or alteration is to constitute authorization and approval of a correproposed as to any provision of any instrument pursu- sponding alteration or modification of the obligation

ant to which such class of securities shall have been of any other carrier which has assumed liability in reissued or shall be secured: Provided, That in any case spect of such class of securities as guarantor, endorser,

where more than one class of securities shall have surety, or otherwise : Provided, That such other carrier

been issued and be outstanding or shall be secured consents in writing to such alteration or modification

pursuant to any instrument, any alteration or modifi- of such class of securities in respect of which it has ascation proposed as to any provision of such instrument sumed liability or of the instrument pursuant to

which does not relate to all of the classes of securities which such class of securities has been issued or by

issued thereunder, shall be deemed to affect only the which it is secured and, such consent having been

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,

be deemed a carrier.

(10) Rules and regulations

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 ex- of 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

the Commission hereunder, shall have full power to (11) Issuance of securities ; law governing

make any such alteration or modification and to take Any issuance of securities under this section which

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

its officers and employees and any other persons, par- not apply to the issuance, sale, or exchange of certifiticipating 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

State, or municipal, insofar as may be necessary to deemed to be added to those exempted by sections 3

enable them to make and carry into effect the alter- and 4, respectively, of said Securities Act (15 U .S.C .

ation or modification so approved and authorized in 77c, 77d) .

accordance with the conditions and with the amend- (12) Taxes on issuance, transfer, or exchange of securities

ments, if any, imposed by the Commission . Any power

The provisions of sections 1801, 1802, 3481, and 3482 granted by this section to any carrier shall be deemed

to be in addition to and in modification of its powers of the Internal Revenue Code (of 19391 and any

under its corporate charter or under the laws of any

amendments thereto, unless specifically providing to

State. The provisions of this section shall not affect in

the contrary, . shall not apply to the issuance, transfer,

any way the negotiability of any security of any carrior exchange of securities or the making or delivery of

er or of the obligation of any carrier which has asconveyances to make effective any alteration or modisumed liability in respect thereto .

fication effected pursuant to this section .

(6) Reports to Commission from carrier

(13) Conditions permitting modification and adjustment proThe Commission shall require periodical or special

cedure to carriers in receivership or reorganization proreports from each carrier which shall hereafter secure

ceedings

from the Commission approval and authorization of

The Commission shall not approve an application

any alteration or modification under this section, filed under this section by any carrier while in equity

which shall show, in such detail as the Commission receivership or in process of reorganization under secmay require, the action taken by the carrier in the

tion 77 of the Bankruptcy Act, except that the Commaking of such alteration or modification .

mission may approve an application filed by a carrier

which, on April 9, 1948, is in equity receivership and

(7) Section as permissive with respect to which no order confirming the sale of

The provisions of this section are permissive and not the carrier's property has been entered, or is in proomandatory and shall not require any carrier to obtain ess of reorganization under section 77 and with respect

authorization and approval of the Commission hereto which no order confirming a plan shall have been

under for the making of any alteration or modification entered, or, such an order having been entered, if an

of any provision of any of its securities or of any class appeal from said order is pending on said date in a

thereof or of any provision of any mortgage, indencourt of appeals or the matter is pending in the Suture, deed of trust, corporate charter, or other instru- preme Court on a petition to review any order of a

ment, which it may be able lawfully to make in any

court of appeals dealing with said order of confirmaother manner, whether by reason of provisions for the tion or the time within which to make such appeal or

making of such alteration or modification in any such to file such petition has not expired, if prior to the

mortgage, indenture, deed of trust, corporate charter,

filing of such application with the Commission such

or other instrument, or otherwise : Provided, That the carrier shall have applied for and been granted perprovisions 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

made otherwise than pursuant to the provisions of

title 11 proceeding is pending. Any such carrier applythis section, shall continue to be so applicable .

ing for permission to file such application shall file

with the court as a prerequisite to the granting of

(8) Law governing applications; supplemental orders

such permission (1) a copy of the proposed applicaThe provisions of paragraph (6) of section 20a of tion, (2) a copy of the proposed plan of alteration or

this Appendix, except the provisions of paragraph (6) modification of its securities, and (3) assurances satisof said section in respect of hearings, shall apply to factory to the court of the acceptance of such plan

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 credifrom time to time, for good cause shown, make such tors' claims, affected by such plan. An order of a dissupplemental orders in the premises as it may deem trict judge granting or withholding such permission

necessary or appropriate, and may by any such supple- shall be final and shall not be subject to review . Upon

mental order modify the provisions of any such order, granting of such permission, such proceeding, so far as

subject always to the requirements of paragraph (2) of it relates to a plan of reorganization, shall be suspendthis section .

ed until the Commission shall have notified the court
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 unneces- Section 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.

(Feb. 4, 1887, ch . 104, pt. I, 4 20b, as added Apr . 9, 1948,

Prior to repeal, section read as follows :

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 trans9 20c. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17,

mitted to Congress and copies of which shall be distributed 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 of value in the determination of questions contransportation of oil by pipeline

. Section 337(a) of nected with the regulation of commerce, together with

rePub. L 95-598, which amended this section effective such recommendations as to additional legislation relating thereto as the Commission may deem necessary;

Oct. 1, 1979, subsequent to the repeal of this section and the names and compensation of the persons 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,

oiled Title 49,

1889, ch. 382, 4 8, 25 Stat . 862; May 23, 1935, ch. 136, 49

of Title 49. See,

also,

notes following Table .

fo l see Table at beginning

Stat . 287; Apr. 21, 1976, Pub. L. 94-273, 111(4), 90 Stat .

Prior to repeal, section read as follows :

378.)

9 20c. Recordation of railroad equipment trust agreements § 22. Repealed. Pub . L. 95-473, 9 4(b), (c), Oct. 17,

and other evidences of equipment indebtedness

1978,92 Stat. 1466, 1470

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 of

dencing the mortgage, lease, conditional sale, or bail- this section in revised Title 49, Transportation, see

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 Govthereof, in whole or in part), may be filed with the

ernment

Commission, provided such instrument, assignment, (1) Nothing in this chapter shall prevent the carsupplement 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 employ- nation by reason of the fact that such carrier extends

ees, or to prevent the free carriage, storage, or han- such 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 ing such reduced rates .

such goods and effects must necessarily be moved

(2) All quotations or tenders of rates, fares or from one place to another as a result of a change in

the place employment of such officers or employees charges under paragraph (1) of this section for the

while in the service of the carrier, or to

prevent

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

vided, That no pending litigation shall in any way be such quotation or tender (a) was made prior to August

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,

or more miles. But before any common carrier, subject 1957 . Submittal of such quotations or tenders to the

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 inter- ices 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 per- spection . 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 Stat . 643 ; Aug . 18, 1922, ch. 280, 42 Stat . 827 ; Feb. 26,

section. It shall be unlawful for any common carrier 1927, ch. 217, 44 Stat. 1247; Mar. 4, 1927, ch. 510, § 1, that has issued or authorized to be issued any such

44 Stat . 1446 : June 27, 1934, ch . 847, title V, § 511, 48 joint interchangeable mileage tickets to demand, col- Stat. 1264 ; Aug. 9, 1935, ch. 498, 11, 49 Stat . 543 ; July

lect, or receive from any person or persons a greater or 5, 1937, ch. 432, 50 Stat . 475 ; Aug. 25, 1937, ch. 776, 50 less compensation for transportation of persons or

Stat. 809 ; Sept . 18, 1940, ch. 722, title I, § 3(c)-(e), 54 baggage under such joint interchangeable mileage

Stat. 900; Sept . 27, 1944, ch. 423, 58 Stat. 751; July 27,

tickets than that required by the rate, fare, or charge 1956, ch . 759, 70 Stat. 702 ; Aug . 31, 1957, Pub . L.

specified in the copies of the joint tariff of rates, fares, 85-246, 71 Stat . 564 ; Sept . 2, 1958, Pub . L. 85-857, or charges filed with the Commission in force at the

§ 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

this proviso . Nothing in this chapter shall prevent any

carrier or carriers subject to this chapter from giving § 23. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17,

reduced rates for the transportation of property to or

1978, 92 Stat. 1466, 1470

from any section of the country with the object of

providing relief in case of earthquake, flood, fire, Section repealed subject to an exception related to

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) specifyPrior to repeal, section read as follows :
Page 567

TITLE 49, APPENDIX-TRANSPORTATION 9 26

§ 23 . Mandamus to obtain equal facilities for shippers stall such systems, devices, appliances, or methThe 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 instructo issue a writ or writs of mandamus against said

tions; time; modification

common carrier, commanding such common carrier to

Each railroad shall file with the Secretary of

other

move and

facilities

s for

transportation

trens trafftraffic, or of

for

fu

the

furnish

party applycars

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

§ 25. Repealed. Sept. 18, 1940, ch . 722, title I, 914(a), thereof having been served on the president,

54 Stat . 919

chief operating officer, trustee, or receiver, of

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 Appendix .

instructions be enforced until they shall have

been filed with and approved by the Secretary

§ 26. Safety appliances, methods, and systems of Transportation: And provided further, That

(a) "Railroad" defined

the Secretary of Transportation may on his

own

The term "railroad" as used in this section

motion, upon good cause shown, revise,

amend,

have the same meaning as when used in structions

, or

prescribed

mhi i

the Federal Railroad Safety Act of 1970 (45

scribed

the

by him

under

this

and inshall 431

q.) .

tion, and as revised, amended, or modified they

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

gence of railroad

provided .

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 specified in the order, to install the block signal The Secretary of Transportation is authorsystem, 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

Provided further, That a railroad shall not be railroad or in any concern dealing in railway

held to be negligent because of its failure to in- supplies shall be used for such purpose .
§ *26

TITLE 49, APPENDIX-TRANSPORTATION Page 568

(e) Unlawful use of system, etc.

any violations of this section coming to its

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 accidents498, 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

made in writing of the fact of such accident by

REFERENCES IN TExT

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

(g) Repealed. Pub . L. 97-449, § 7(b), Jan. 12, 1983, 96

the Code, see Short Title note set out under section

Stat. 2444

421 of Title 45 and Tables .

(h) Penalties; enforcement

CODIFICATION

Any person (including a railroad and any In subsec. (h), "sections 3711 and 3716-3718 of title

manager, supervisor, official, or other employee 31" was substituted for "the Federal Claims Collection

or agent of a railroad) violating any provision Act of 1966" on authority of Pub

. L. 97-258, § 4(b),

of this section, or failing to comply with any of Sept

. 13, 1982, 96 Stat . 1067, the first section of which

the rules, regulations, orders, standards, or in97-45 enacted Title 31, Money and Finance, and Pub a . L.

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

tion

. Such penalty shall be assessed by the Sec- such railway is operated as a part of a general steamof Transportation and, where compro- railroad system of transportation, but shall not ex- railroad

retaryis not reached by the Secretary under sec- crude any part of a general steam-railroad

by

of

tr portation now or hereafter operated y any other

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

fendant has its principal executive office

. It carriers", and "That a railroad" for "That a carrier" .

be the duty of such attorneys to bring

Subsec. (c) . Pub. L . 100-342, § 17(3), (8), substituted

shall such suits upon duly verified information being "Each railroad" for "Each carrier by railroad", substisuch

with them showing such violations sion"

sited

in

"

6 places,

of

and substituted "railro"railroad" for

"car

car

"Commislodged occurred ; and it shall be the duty of the er" in 6 places.

Secretary of Transportation to lodge with theSubsec. (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

"railroad" for "carrier" .

Penalties assessed under this section not to be comSubsec. (f) . Pub. L. 100-342, § 17(6), (8), substituted

promised

section

by the Secretary for less than $250, see sec3711 of Title 31, Money and Finance .

"Secretary of Transportation" for "Commission" in 4

places and substituted "railroad" for "carrier" in 2

CROSS REFERENCES

places .

Subsec. (h). Pub. L. 100-342, § 17(7), (8), substituted

Civil-service laws, generally, see Title 5, Government

new first sentence for former first sentence which Organization and Employees .

read as follows: "Any carrier which violates any provision of this section, or which fails to comply with any

SECTION REFERRED TO IN OTHER SECTIONS

of the orders, rules, regulations, standards, or instruc- This 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 assessed by the Secretary of Transportation and recov- Section repealed subject to an exception related to

ered 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 SecretaryPrior 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

proved under this section, shall be deemed a violation, centum of compensation paid by carrier to him or where

and an individual shall be deemed not to have commit- employee resides ; filing of information return by carrier

ted a willful violation where such individual has acted No part of the compensation paid by any railroad,

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 emsuch protest." ployee on a locomotive, car, or other trackborne vehi1983-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

Title 49, Transportation. withheld for income tax purposes pursuant to the laws

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 emsuch violation shall have been committed" . ployee did not earn more than 50 per centum of his

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

of Transportation. year, then withholding shall be required only for the

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

$2,500" for "$100 for each such violation and $100" . or other report for income tax purposes with respect

1937-Act Aug. 26, 1937, divided section into subsec- to such compensation with any State or subdivision

tions and amended section generally . thereof other than such State or subdivision of resi1935-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

EFFEcTIvE DATE OF 1980 AMENDMENT

earned more than 50 per centum of compensation

Amendment by Pub. L. 96-423 effective Oct. 10,

(1) For the purposes of subsection (a)(1) of this sec1980, see section 17(a) of Pub . L

. 96-423, set out a note tion, an employee shall be deemed to have earned

under section 431 of Title 45, Railroads.

more than 50 per centum of his compensation in any

State or subdivision thereof in which the mileage travTRANSFER OF FUNCTIONS

eled by him in such State or subdivision is more than

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

12107, Dec. 28, 1978, 44 F.R . 1055, set out under sec-

For the purposes of this section the term "State"

tion 1101 of Title 5 . also means the District of Columbia; and the term
9 26b

TITLE 49, APPENDIX-TRANSPORTATION Page 570

"compensation" shall mean all moneys received for (c) may seek judicial review of any Commission

services rendered by an employee, as defined in sub- action on any matter involving a common carrier by

section (a) of this section, in the performance of his railroad subject to this chapter, to the extent such

duties and shall include wages and salary . review is authorized by law for any person and on

(Feb. 4, 1887, ch . 104, pt. I, § 26, as added Dec. 23, 1970,

the same basis ;

Pub. L. 91-569, § 1, 84 Stat . 1499 .)

(d) shall solicit, study, evaluate, and present before

the Commission, in any proceeding, formal or infor9 26b. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17,

mal, the views of those communities and users of rail

1978, 92 Stat . 1466, 1470; Pub . L. 96-258, § 3(b),

service affected by proceedings initiated by or pendJune 3, 1980, 94 Stat . 427

ing before the Commission, whenever the Director

determines, for whatever reason (such as size or loSection repealed subject to an exception related to

cation), that such community or user of rail service

transportation of oil by pipeline . Section 804 of Pub. might not otherwise be adequately represented

L. 95-620, which amended par. (4) of this section, ef- before the Commission in the course of such profective 180 days after Nov . 9, 1978, subsequent to the

ceedings ;

repeal of this section by Pub. L . 95-473, was repealed (e) shall evaluate and represent, before the Comby Pub. L. 96-258 . For disposition of this section in remission and before other Federal agencies when

vised Title 49, Transportation, see Table at beginning

their policies and activities significantly affect rail

of Title 49. See, also, notes following Table .

transportation matters subject to the jurisdiction of

Prior to repeal, section read as follows :

the Commission,, and shall by other means assist the

constructive representation of, the public interest in

it 26b. Office of Rail Public Counsel safe, efficient, reliable, and economical rail transpor-

(1) Establishment; statutory provisions applicable

<f)

tation sa

shall

pe se and

l present the views of users, as well as the

There shall be established, within 60 days after Feb-

views of the general public and affected communiruary 5, 1976, a new independent office affiliated with ties, and, where appropriate, providers of rail servthe Commission to be known as the Office of Rail ices in proceedings of Federal agencies concerningPublic Counsel. The Office of Rail Public . Counsel (1) the impact of energy proposals and actions

shall function continuously pursuant to this section on rail transportation, and

and other applicable Federal laws. (2) whether transportation policies are consist-

(2) Director, appointment ; term of office; responsibilities;

ent with National energy policies .

compensation

In the performance of its duties under this paragraph,

(a) The Office of Rail Public Counsel shall be adthe Office of Rail Public Counsel shall assist the Comministered by a Director. The Director shall be apmission in the development of a public interest record

pointed by the President, by and with the advice and

in proceedings before the Commission .

consent of the Senate .

(5) Concurrent submission of budget requests and estimates

(b) The term of office of the Director shall be 4

to President and Congress

years . He shall be responsible for the discharge of the

The budget requests and budget estimates of the

functions and duties of the Office of Rail Public Counsel. He shall be appointed and compensated, without

Office of Rail Public Counsel shall be submitted conregard to the provisions of title 5 governing appointcurrently to the Congress and to the President .

ments in the competitive service, classification, and

(6) Authorization of appropriations

General Schedule pay rates, at a rate not in excess of

There are authorized to be appropriated to the

the maximum rate for GS-18 of the General Schedule

Office of Rail Public Counsel for the purpose of carryunder section 5332 of such title.

ing out the provisions of this section not to exceed

(3) Powers and duties of Director $500,000 for the fiscal year ending June 30, 1976, not

The Director is authorized to appoint, fix the com- to exceed $500,000 for the fiscal year transition period

pensation, and assign the duties of employees of such ending September 30, 1976, and not to exceed

Office and to procure temporary and intermittent $2,000,000 for the fiscal year ending September 30,

services to the same extent as is authorized under sec- 1977.

tion 3109 of title 5. Each bureau, office, or other entity (Feb . 4, 1887, ch. 104, pt. I, § 27, as added Feb. 5, 1976,

of the Commission and each department, agency, and pub. L. 94-210, title III, § 304(a), 90 Stat . 51, and

instrumentality of the executive branch of the Feder- amended Nov. 9, 1978, Pub. L. 95-620, title VIII, 1804,

al Government and each independent regulatory 92 Stat. 3348.)

agency of the United States is authorized to provide

the Office of Rail Public Counsel with such informa- § 26c. Repealed . Pub . L. 95-473, § 4(b), (c), Oct . 17,

tion and data as it requests . The Director is authorized

1978, 92 Stat. 1466, 1470

to enter into, without regard to section 5 of title 41,

such contracts, leases, cooperative agreements, or Section repealed subject to an exception related to

other transactions as may be necessary in the conduct transportation of oil by pipeline. For disposition of

of his functions and duties. The Director shall submit this section in revised Title 49, Transportation, see

a monthly report on the activities of the Office of Rail Table at beginning of Title 49 . See, also, notes followPublic Counsel to the Chairman of the Commission, ing Table.

and the Commission, in its annual report to the Con-Prior to repeal, section read as follows :

gress, shall evaluate and make recommendations with

respect to such Office and its activities, accomplish-

§ 26c Discriminatory taxation by States, political subdiviments, and shortcomings.

sions, or governmental entities or persons acting on

(4) Additional duties and responsibilities of Office behalf of States or subdivisions

In addition to any other duties and responsibilities

prescribed by law, the Office of Rail Public Counsel- (1) Particular acts unlawful

(a) shall have standing to become a party to any Notwithstanding the provisions of section 302(b) of

proceeding, formal or informal, which is pending or this Appendix, any action described in this subsection

initiated before the Commission and which involves is declared to constitute an unreasonable and unjust

a common carrier by railroad subject to this chapter; discrimination against, and an undue burden on, inter-

(b) may petition the Commission for the initiation state commerce . It is unlawful for a State, a political

of proceedings on any matter within the jurisdiction subdivision of a State, or a governmental entity or

of the Commission which involves- a common carrier person acting on behalf of such State or subdivision to

by railroad subject to this chapter ;

commit any of the following prohibited acts :
Page 571

TITLE 49, APPENDIX-TRANSPORTATION § 41

(a) The assessment (but only to the extent of any property, real or personal, other than transportation

portion based on excessive values as hereinafter de- property and land used primarily for agricultural

scribed), for purposes of a property tax levied by any purposes or primarily for the purpose of growing

taxing district, of transportation property at a value timber, which is devoted to a commercial or industriwhich bears a higher ratio to the true market value al use and which is subject to a property tax levy;

of such transportation property than the ratioand

which the assessed value of all other commercial and (d) "transportation property" means transportaindustrial property in the same assessment jurisdic- tion property, as defined in regulations of the Comtion bears to the true market value of all such other mission, which is owned or used by a common carrier

commercial and industrial property.

by railroad subject to this chapter or which is owned

(b) The levy or collection of any tax on an assess- by the National Railroad Passenger Corporation .

ment which is unlawful under subdivision (a).

(Feb. 4, 1887, ch . 104, pt . I, 128, as added Feb . 5, 1976,

(c) The levy or collection of any ad valorem prop- Pub. L. 94-210, title IV, § 306, 90 Stat . 54, and amended

erty tax on transportation property at a tax rate Oct. 19, 1976, Pub. L. 94-555, title II, § 220(0), 90 Stat . higher than the tax rate generally applicable to 2630 .)

commercial and industrial property in the same assessment jurisdiction.

§ 27 . Repealed. Pub. L . 95-473, 6 4(b), Oct. 17, 1978, 92 (d) The imposition of any other tax which results

Stat. 1466 in discriminatory treatment of a common carrier by

railroad subject to this chapter .

Section, acts Feb. 4, 1887, ch . 104, pt. I, § 29, as

(2) Judicial relief; limitationsadded Feb. 28, 1920, ch . 91, § 441, 41 Stat. 499, amendNotwithstanding any provision of section 1341 of ed Aug. 9, 1935, ch . 498, § 1, 49 Stat . 543, renumbered

title 28, or of the constitution or laws of any State, the § 26 and amended Sept. 18, 1940, ch. 722, title I,

district courts of the United States shall have jurisdic- § 14(c), 54 Stat. 919, renumbered 127, Dec. 23, 1970,

tion, without regard to amount in controversy or citi- Pub. L . 91-569, § 1, 84 Stat. 1499, renumbered 1299

zenship of the parties, to grant such mandatory or Feb. 5, 1976, Pub . L. 94-210, title III, § 304(a), 90 Stat .

prohibitive injunctive relief, interim equitable relief, 51, authorized chapter to be cited as part I of the

and declaratory judgments as may be necessary to pre- Interstate Commerce Act . For disposition of this secvent, restrain, or terminate any acts in violation of tion in revised Title 49, Transportation, see Table at

this section, except that-

beginning of Title 49 .

(a) such jurisdiction shall not be exclusive of the

jurisdiction which any Federal or State court may CHAPTER 2-LEGISLATION SUPPLEMENTARY

have in the absence of this subsection ;

TO "INTERSTATE COMMERCE ACr'

(b) the provisions of this section shall not become

effective until 3 years after February 5, 1976 ;

§ 41 . Repealed. Pub. L. 95-473, 0 .4(b), (c), Oct. 17,

(c) no relief may be granted under this section

1978, 92 Stat. 1466, 1470

unless the ratio of assessed value to true market

value, with respect to transportation property, ex- Section repealed subject to an exception related to

ceeds by at least 5 per centum the ratio of assessed transportation of oil by pipeline . For disposition of

value to true market value, with respect to all other this section in revised Title 49, Transportation, see

commercial and industrial property in the same as- Table at beginning of Title 49 . See, also, notes followsessment jurisdiction;

ing Table.

(d) the burden of proof with respect to the deter- Prior to repeal, section read as follows :

mination of assessed value and true market value

shall be that declared by the applicable State law ; f 41. Liability of corporation carriers and agents; offenses

(e) in the event that the ratio of the assessed value

and penalties

of all other commercial and industrial property in (1) Liability of corporation common carriers; offenses; penalthe assessment jurisdiction to the true market value

ties ; jurisdiction

of all such other commercial and industrial property Anything done or omitted to be done by a corporacannot be established through the random-sampling tion common carrier, subject to the Act to regulate

method known as a sales assessment ratio study commerce and the Acts amendatory thereof, which, if

(conducted in accordance with statistical principles done or omitted to be done by any director or officer

applicable to such studies) to the satisfaction of the thereof, or any receiver, trustee, lessee, agent, or

court hearing the complaint that transportation person acting for or employed by such corporation,

property has been or is being assessed or taxed in would constitute a misdemeanor under said Acts or

contravention of the provisions of this section, then under sections 41, 42, or 43 of this Appendix, shall also

the court shall hold unlawful an assessment of such be held to be a misdemeanor committed by such cortransportation property at a value which bears a poration, and upon conviction thereof it shall be subhigher ratio to the true market value of such trans- ject to like penalties as are prescribed in said Acts or

portation property than the assessed value of all by sections 41, 42, or 43 of this Appendix, with referother property in the assessment jurisdiction in ence to such persons, except as such penalties are

which is included such taxing district and subject to herein changed. The willful failure upon the part of

a property tax levy bears to the true market value of any carrier subject to said Acts to file and publish the

all such other property, and the collection of any ad tariffs or rates and charges as required by said Acts, or

valorem property tax on such transportation proper- strictly to observe such tariffs until changed according

ty at a tax rate higher than the tax rate generally to law, shall be a misdemeanor, and upon conviction

applicable to taxable property in the taxing district . thereof the corporation offending shall be subject to a

(3) Definitions

fine of not less than $1,000 nor more than $20,000 for

As used in this section . the term- each offense ; and it shall be unlawful for any person,

(a) "assessment" means valuation for purposes of a persons, or corporation to offer, grant, or give, or to

property tax levied by any taxing district; solicit, accept, or receive any rebate, concession, or dis-

(b) "assessment jurisdiction" means a geographical crimination in respect to the transportation of any

area, such as a State or a county, city, township, or property in interstate or foreign commerce by any

special purpose district within such State which is a common carrier subject to said Act to regulate comunit for purposes of determining the assessed value merce and the Acts amendatory thereof whereby any

of property for ad valorem taxation ; such property shall by any device whatever be trans-

(c) "commercial and industrial property" or "all ported at a less rate than that named in the tariffs

other commercial and industrial property" means all published and filed by such carrier, as is required by
§ 42

TITLE 49, APPENDIX-TRANSPORTATION Page 572

said Act to regulate commerce and the Acts amendato- ceived or accepted for a period of six years prior to the

ry thereof, or whereby any other advantage is given or commencement of the action, may be included therediscrimination is practiced. Every person or corpora- in, and the amount recovered shall be three times the

tion, whether carrier or shipper, who &hall, knowingly, total amount of money, or three times the total value

offer, grant, or give, or solicit, accept, or receive any of such consideration, so received or accepted, or both,

such rebates, concession, or discrimination shall be as the case may be.

deemed guilty of a misdemeanor, and on conviction (Feb . 19, 1903, ch. 708, 11, 32 Stat. 847 ; June 29, 1906,

thereof shall be punished by a fine of not less than

ch. 3591, 12, 34 Stat. 587.)

$1,000 nor more than $20,000 : Provided, That any

person, or any officer or director of any corporation § 42. Repealed . Pub . L. 95-473, § 4(b), Oct. 17, 1978, 92

subject to the provisions of sections 41, 42, or 43 of

Stat. 1466

this Appendix or- of the . Act to regulate commerce and

the Acts amendatory thereof, or any receiver, trustee,

Section, acts Feb . 19, 1903, ch . 708, ¢ 2, 32 Stat. 848 ;

lessee, agent, or person acting for or employed by any Mar. 3, 1911, ch. 231, § 291, 36 Stat. 1167, authorized

such corporation, who shall be convicted as aforesaid, all parties to be included in any proceeding to enforce

shall, in addition to the fine herein provided for, be the laws relating to interstate commerce. For disposiliable to imprisonment in the penitentiary for a term tion of this section in revised Title 49, Transportation,

of not exceeding two years, or both such fine and im- see Table at beginning of Title 49 .

prisonment, in the discretion of the court. Every violation of this section shall be prosecuted in any court of § 43. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17,

the United States having jurisdiction of crimes within

1978, 92 Stat. 1466, 1470

the district in which such violation was committed, or

through which the transportation may have been con- Section repealed subject to an exception related to

ducted; and whenever the offense is begun in one Ju- transportation of oil by pipeline. For disposition of

risdiction and completed in another it may be dealt this section in revised Title 49, Transportation, see

with, inquired of, tried, determined, and punished in Table at beginning of Title 49. See, also, notes followeither jurisdiction in the same manner as if the of- ing Table .

fense had been actually and wholly committed there-

Prior to repeal, section read as follows :

in.

(2) Liabilities for acts of agents ; departure from published 043. Proceedings in equity to enforce tariffs, etc .; United

ratesStates attorneys ; damages; witnesses; precedence

In construing and enforcing the provisions of this Whenever the Interstate Commerce Commission

section, the act, omission, or failure of any officer, shall have reasonable ground for belief that any

agent, or other person acting for or employed by any common carrier is engaged in the carriage of passencommon carrier, or shipper, acting within the scope of gers or freight traffic between given points at less

his employment, shall in every case be also deemed to than the published rates on file, or is committing any

be the act, omission, or failure of such carrier or ship- discriminations forbidden by law, a petition may be

per as well as that of the person . Whenever any carri- presented alleging such facts to the district court of

er files with the Interstate Commerce Commission or the United States sitting in equity having jurisdiction ;

publishes a particular rate under the provisions of the and when the act complained of is alleged to have

Act to regulate commerce or Acts amendatory thereof, been committed or as being committed in part in more

or participates in any rates so filed or published, that than one judicial district or State, it may be dealt

rate as against such carrier, its officers or agents, in with, inquired of, tried, and determined in either such

any prosecution begun under sections 41, 42, or 43 of judicial district or State, whereupon it shall be the

this Appendix, shall be conclusively deemed to be the duty of the court summarily to inquire into the cirlegal rate, and any departure from such rate, or any cumstances, upon such notice and in such manner-as

offer to depart therefrom, shall be deemed to be an of- the court shall direct and without the formal pleadfense under this section. Ings and proceedings applicable to ordinary suits in

(3) Receiving rebates; additional penalty and recovery thereof equity, and to make such other persons or corporaAny person, corporation, or company who shall detions parties thereto as the court may deem necessary,

liver property for interstate transportation to any and upon being satisfied of the truth of the allegacommon carrier, subject to the provisions of sections tions of said petition said court shall enforce an ob41, 42, or 43 of this Appendix, or for whom as consignservance of the published tariffs or direct and require

or or consignee, any such carrier shall transport prop- a discontinuance of such discrimination by proper

erty from one State, Territory, or the District of Co- orders, writs, and process, which said orders, writs, and

lumbia to any other State, Territory, or the District of

process may be enforceable as well against the parties

Columbia, or foreign country, who shall knowingly by interested in the traffic as against the carrier, subject

employee, agent, officer, or otherwise, directly or indi- to the right of appeal as now provided by law . It shall

rectly, by or through any means or device whatsoever,

be the duty of the several United States attorneys,

receive or accept from such common carrier any sum whenever the Attorney General shall direct, either of

of money or any other valuable consideration as a

his own motion or upon the request of the Interstate

rebate or offset against the regular charges for transCommerce Commission, to institute and prosecute

portation of such property, as fixed by the schedules such proceedings, and the proceedings provided for by

of rates provided for in said sections, shall in addition sections 41, 42, or 43 of this Appendix shall not preto any penalty provided by said sections forfeit to the clude the bringing of suit for the recovery of damages

United States a sum of money three times the amount

by any party injured, or any other action provided by

of money so received or accepted and three times the said Act approved February 4, 1887, entitled An Act to

value of any other consideration so received or acceptregulate commerce and the Acts amendatory: thereof.

ed, to be ascertained by the trial court; and the Attor- And in proceedings under sections 41, 42, or 43 of this

ney General of the United States is authorized and di- Appendix and the Acts to regulate commerce the said

rected, whenever he has reasonable grounds to believe courts shall have the power to compel the attendance

that any such person, corporation, or company has

of witnesses, both upon the part of the carrier and the

knowingly received or accepted from any such

shipper, who shall be required to answer on all subcommon carrier any sum of money or other valuable jects relating directly or indirectly to the matter in

consideration as a rebate or offset as aforesaid, to incontroversy, and to compel the production of all books

stitute in any court of the United States of competent and papers, both of the carrier and the shipper, which

jurisdiction, a civil action to collect the said sum or relate directly or indirectly to such transaction .

sums so forfeited as aforesaid; and in the trial of said (Feb. 19, 1903, ch. 708, § 3, 32 Stat. 848; Mar. 3, 1911,

action all such rebates or other considerations so re- ch. 231, § 291 . 36 Stat . 1167 ; June 25, 1948, ch. 646, § 1,
Page 573

TITLE 49, APPENDIX-TRANSPORTATION § 51

62 Stat. 909 ; Oct. 15, 1970, Pub. L. 91-452, title II, § 49. Transferred

§ 244, 84 Stat . 931 ; Dec. 21, 1974, Pub. L. 93-528, § 6(b),

88 Stat . 1709 .)

§§ 44, 45. Transferred

Section, acts Feb. 4, 1887, ch. 104, pt. I, 123, formerCODIFICATION

ly Mar. 2, 1889, ch . 382, § 10, 25 Stat . 862 ; Mar . 3, 1911,

ch. 231, § 291, 36 Stat . 1167, renumbered May 16, 1942,

Section 44, acts Feb. 11, 1903, ch . 544, § 1, 32 Stat . ch. 318, § 5, 56 Stat . 301, which related to mandamus

823; June 25, 1910, ch. 428, 36 Stat. 854 ; Mar. 3, 1911, to obtain equal facilities for shippers, was transferred

ch. 231, § 291, 36 Stat . 1167; Apr . 6, 1942, ch. 210, § 1, to section 23 of this Appendix pursuant to renumber56 Stat. 198; June 25, 1948, ch. 646, § 32(a), 62 Stat . ing by act May 16, 1942 .

991; May 24, 1949, ch . 139, § 127, 63 Stat . 107 ; Dec . 21,

1974, Pub. L. 93-528, § 4, 88 Stat. 1708, which related § 50. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17,

to expedition of actions by United States involving

1978, 92 Stat . 1466, 1470 general public importance, was transferred to section

28 of Title 15, Commerce and Trade .

Section repealed subject to an exception related to Section 45, acts Feb. 11, 1903, ch. 544, § 2, 32 Stat .

823;3

transportation of oil by pipeline . For disposition of

1944, 239,

,1911, ch 58 .tat. 2 72 § 9 36 Stat . 1167 ch ;

. 646, 17,

7,

this section in revised Title 49, Transportation, see

62

,

Stat . 989; Dec.

21,

197474,

Jun

Pub.

a e

L

25,. 1948,

93-528,

§ 5,

88

,

Stat §

.

t .

Table at beginning of Title 49 . See, also, notes follow1709, which related to appeals to Supreme Court, was ing Table.

transferred to section 29 of Title 15 .

Prior to repeal, section read as follows:

§ 46. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17, 050. Agent in Washington for service ; service in default of

1978,

designation

Section repealed subject to an exception related to It shall be the duty of every common carrier subject

transportation of oil by pipeline . For disposition of to the provisions of chapter 1 of this Appendix to desthis section in revised Title 49, Transportation, see ignate in writing an agent in the city of Washington,

Table at beginning of Title 49 . See, also, notes follow- District of Columbia, upon whom service of all notices

ing Table.

and processes may be made for and on behalf of said

Prior to repeal, section read as follows : common carrier in any proceeding or suit pending

before the Interstate Commerce Commission or before

§ 46. Neglect or refusal to attend and testify, or to answer the district court, and to file such designation in the

lawful inquiries, or to produce books, etc.; offense; pun- office of the secretary of the Interstate Commerce

ishment

Commission, which designation may from time to time

Any person who shall neglect or refuse to attend be changed by like writing similarly filed ; and thereand testify, or to answer any lawful inquiry, or to upon service of all notices and processes may be made

produce books, papers, tariffs, contracts, agreements, upon such common carrier by leaving a copy thereof

and documents, if in his power to do so, in obedience with such designated agent at his office or usual place

to the subpoena or lawful requirement of the Commis- of residence in the city of Washington,

sion shall be guilty of an offense and upon conviction

if

m ith like effect

thereof by a court of competent jurisdiction shall be

in fault f

such designation upon such such agent,geservice

and

punished by fine not less than $100 nor more than

default of designation srvice of

$5,000, or by imprisonment for not more than one year any notice or other process in any proceeding before

or by both such fine and imprisonment .

said Interstate Commerce Commission or district court

(Feb. 11, 1893, ch. 83, 27 Stat. 443 ; Oct. 15, 1970, Pub

. may be made by posting such notice or process in the

L. 91-452, title II, § 245, 84 Stat . 931 .)

office of the secretary of the Interstate Commerce

Commission.

§§ 47, 48. Repealed. Pub. L. 91-452, title II, §§ 209, (June 18, 1910, ch. 309, 16, 36 Stat . 544; Oct. 22, 1913,

210, Oct. 15, 1970, 84 Stat. 929

ch. 32, 38 Stat. 219 .)

Section 47, act Feb . 25, 1903, ch. 755, § 1, 32 Stat . § 51 . Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17,

904, granted immunity from prosecution to witnesses

1978, 92 Stat. 1466, 1470 testifying or producing evidence, documentary or

otherwise, in any proceeding, suit, or prosecution

Section repealed subject to an exception related to under chapters 1, 8, 12, 13, and 19 of this Appendix

. transportation of oil by pipeline . For disposition of See section 6001 et seq

. of Title 18, Crimes and Crimi- this section in revised Title 49, Transportation, see nal Procedure.

Section 48, act June 30, 1906, ch . 3920, 34 Stat

. 798, Table at beginning of Title 49. See, also, notes followprovided that, under the immunity provisions of sec- ing Table .

tions 43, 46, and 47 of this Appendix, immunity was to

Prior to repeal, section read as follows :

extend only to a natural person who, in obedience to a

subpoena, testified or produced evidence .

§ 51 . Proceedings relating to rail and water routes ; orders

EFFECTIVE DATE OF REPEAL

The orders of the Interstate Commerce Commission

Repeal of sections 47 and 48 effective on sixtieth day relating to paragraphs (15) to (17) of section 5 of this

following Oct . 15, 1970, see section 260 of Pub . L

Appendix and paragraph (11) of section 6 of this Ap91-452, set out as an Effective Date

; Savings Provi- pendix shall only be made upon formal complaint or

lions note under section 6001 of Title 18, Crimes and in proceedings instituted by the Commission of its own

Criminal Procedure.

motion and after full hearing. The orders provided for

in said paragraphs shall be served in the same manner

SAVINGS PROVISION

and enforced by the same penalties and proceedings as

Repeal of sections 47 and 48 not to affect any immu- are the orders of the Commission made under the pronity to which any individual was entitled by reason of

be conoit

section 155 of this Appendix, y s they may

any testimony given before the sixtieth day following ggiving security

the payment of any um or the

Oct. 15, 1970, see section 260 of Pub . L. 91-452, set out

f anyfor

obligation

the payment a any sum or tby

as an Effective Date; Savings Provisions note under

discharge o and obligtion which my be required

section 6001 of Title 18, Crimes and Criminal Procedure .

(Aug. 24, 1912, ch . 390, § 11, 37 Stat. 568 .)

95-019 0 - 90 - 20 (Vol. 19) : QL3

CODIFICATION
§ 52

TITLE 49, APPENDIX-TRANSPORTATION Page 574

§52. 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 :

§ 52. Railroads to serve employees in valuation work ; compensation

It shall be the duty of every common carrier by railroad whose property is being valued under section 19a

of this Appendix to transport the engineers, field parties, and other employees of the United States who

are actually engaged in making surveys and other examination of the physical property of said carrier necessary to execute said section from point to point on

said railroad as may be reasonably required by them

in the actual discharge of their duties ; and, also, to

move from point to point and store at such points as

may be reasonably required the cars of the United

States which are being used to house and maintain

said employees; and, also, to carry the supplies necessary to maintain said employees and the other property of the United States actually used on said railroad

in said work of valuation. The service above required

shall be regarded as a special service and shall be rendered under such forms and regulations and for such

reasonable compensation as may be prescribed by the

Interstate Commerce Commission and as will insure

an accurate record and account of the service rendered

by the railroad, and such evidence of transportation,

bills of lading, and so forth, shall be furnished to the

Commission as may from time to time be required by

the Commission.

(Aug. 1, 1914, ch . 223, 11, 38 Stat. 627 .)

§ 53. Omitted

CODIFICATION

Section, act Feb. 17, 1917, ch. 84, 39 Stat. 922, prohibited the Commission or the courts from construing

the Interstate Commerce Act as prohibiting the lessee

of the Cincinnati Southern Railway from furnishing

certain free transportation, and was omitted as being

of limited interest.

§ 58. Repealed. June 30, 1949, ch . 288, title VI,

§ 602(a)(27), 63 Stat. 401, renumbered Sept. 5,

1950, ch . 849, § 6(a), (b), 64 Stat. 583

Section, act Aug. 1, 1914, ch. 223, 4 1, 38 Stat . 627, related to exchange of typewriters, adding machines,

and other devices. See section 471 et seq. of Title 40,

Public Buildings, Property, and Works .

EFFECTIvE DATE of REPEAL

Repeal effective July 1, 1949, see section 505 of act

June 30, 1949 .

00 59, 60. Repealed . Pub. L 95-473, § 4(b), Oct. 17,

1978, 92 Stat . 1466

Section 59, act June 19, 1934, ch. 648, title II, 11, 48

Stat . 1056, related to drought emergency existing in

June 1934 .

Section 60, act Jan. 19, 1929, ch . 79, § f 1, 2, 45 Stat.

1084, authorized prison made goods to be divested of

interstate character.

For disposition of these sections in revised Title 49,

Transportation, see Table at beginning of Title 49.

00 61 to 64. Repealed . June 25, 1948, ch. 645, § 21, 62

Stat. 862

Section 61, act July 24, 1935, ch. 412, 4 1, 49 Stat.

494, related to transportation or importation of convict made goods. See section 1761 of Title 18, Crimes

and Criminal Procedure .

Section 62, act July 24, 1935, ch. 412, # 2, 49 Stat.

494, related to marking packages. See section 1762 of

Title 18 .

Section 63, act July 24, 1935, ch. 412, 13, 49 Stat .

495, related to penalties for violations. See section

1762 of Title 18 .

Section 64, act July 24, 1935, ch. 412, 4 4, 49 Stat .

495, related to jurisdiction of violations .

EFFECTIVE DATE OF REPEAL

Repeal of sections 61 to 64 effective Sept . 1, 1948, see

section 38 of act June 25, 1948, set out as an Effective

Date note preceding section 1 of Title 28, Judiciary

and Judicial Procedure.

0 65 . Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17,

§ 54. Repealed. May 29, 1928, ch. 901, 01(114), 45 Stat.

1978, 92 Stat. 1466, 1470

994

Section repealed subject to an exception related to

Section, act Mar . 4, 1915, ch . 147, 4 1, 38 Stat . 1140, transportation of oil by pipeline . For disposition of

related to statements showing employments under ap- this section in revised Title 49, Transportation, see

propriations.Table at beginning of Title 49 . See, also, notes following Table .

§ 55. Repealed. Pub. L. 95-473, § 4(b), Oct. 17, 1978, 92Prior to repeal, section read as follows :

Stat. 1466

Section, act Jan. 30, 1925, ch . 120, 43 Stat. 801, set

0 65. Government traffic; rates

forth policy for rate adjustments, and authorized in- (a) Notwithstanding any other provision of law, but

vestigations of rates. For disposition of this section in

subject to the provisions of sections 1(7) and 22 of the

revised Title 49, Transportation, see Table at beginInterstate Commerce Act, as amended [49 App . U.S .C .

ning of Title 49 .

1(7) and 221, the full applicable commercial rates,

fares, or charges shall be paid for transportation by

0 56. Repealed. May 29, 1928, ch. 901, 01(113), 45 Stat.

any common carrier subject to such Act of any per994

sons or property for the United States, or on its

behalf, and the rate determined by the Interstate

Section, act Oct. 2, 1888, ch. 1069, 25 Stat. 530, relat- Commerce Commission as reasonable therefor shall be

ed to inclusion of statement of expenditures of Com- paid for the transportation by railroad of the United

mission in annual report to Congress .

States mail: Provided, however, That any carrier by

railroad and the United States may enter into con0 57. Repealed. Pub. L. 95-473, § 4(b), Oct. 17, 1978, 92 tracts for the transportation of the United States mail

Stat. 1466

for less than such rate : Provided further, That section

5 of title 41, shall not after September 18, 1940, be

Section, acts Mar. 2, 1889, ch . 411, 4 1, 25 Mat . 954 ; construed as requiring advertising for bids in connecJune 10, 1921, ch. 18, 1304, 42 Stat. 24, related to au- tion with the procurement of transportation services

diting of expenses of the Interstate Commerce Com- when the services required can be procured from any

mission. For disposition of this section in revised Title common carrier lawfully operating in the territory

49, Transportation, see Table at beginning of Title 49 . where such services are to be performed.
Page 575

TITLE 49, APPENDIX-TRANSPORTATION § 80

(b) If any carrier by railroad furnishing such trans- of United States mail and persons or property on

portation, or any predecessor in interest, shall have re- behalf of the United States, was transferred to section

ceived a grant of lands from the United States to aid 66 of this Appendix .

in the construction of any part of the railroad operated by it, the provisions of law with respect to compen-

CHAPTER 3-TERMINATION OF FEDERAL

sation for such transportation shall continue to apply

CONTROL to such transportation as though subsection (a) of this

section had not been enacted until such carrier shall 60 7?1 to 79. Repealed. Pub. L 95-473, § 4(b), Oct. 17, file with the Secretary of the Interior, in the form and

manner prescribed by him, a release of any claim it

1978, 92 Real. 1466

may have against the United States to lands, interests

Section 71, act Feb . 28, 1920, ch. 91, 4 2, 41 Stat. 457,

in lands, compensation, or reimbursement on account related to definitions .

of lands or interests in lands which have been granted,

Section 72, act Feb. 28, 1920, ch. 91, 1202, 41 Stat. claimed to have been granted, or which it is claimed 457, related to funds available .

should have been granted to such carrier or any such Section 73, acts Feb. 28, 1920, ch. 91, 1204, 41 Stat.

predecessor in interest under any grant to such carrier 460 ; Mar . 4, 1927, ch. 510, § 4 44 Stat. 1450; Jan. 7, or such predecessor in interest as aforesaid . Such re- 1941, ch. 938, 54 Stat . 1226, related to reimbursement lease must be filed within one year from September of deficits during Federal control .

18, 1940. Nothing in this section shall be construed as Section 74, acts Feb. 28, 1920, ch. 91, 1206, 41 Stat. requiring any such carrier to reconvey to the United 461 ; Feb. 24, 1922, ch . 70, §11, 2, 42 Stat. 393 ; Mar. 3, States lands which have been heretofore patented or 1923, ch . 233, 42 Stat. 1443; Mar. 4 ; 1927, ch . 510, § 5, certified to it, or to prevent the issuance of patents 44 Stat . 1450, related to causes of actions arising out of confirming the title to such lands as the Secretary of Federal control .

the Interior shall find have been heretofore sold by

Section 75, act May 8, 1920, ch . 172, 41 Stat. 590, re- any such carrier to an innocent purchaser for value or lated to certificate of amounts due from carrier to

as preventing the issuance of patents to lands listed or President and deduction of amounts so certified

. selected by such carrier, which listing or selection has

Section 76, act Feb. 28, 1920, ch. 91, 4 208(x), (b), 41 heretofore been fully and finally approved by the Sec- Stat . 464, related to continuance of existing rates. retary of the Interior to the extent that the issuance

Section 77, act Feb. 28, 1920, ch. 91, 1209, 41 Stat. of such patents may be authorized by law .

464, related to guaranty to carriers after termination

(Sept. 18, 1940, ch. 722, title III, § 321, 54 Stat . 954; of Federal control.

Dec. 12, 1945, ch. 573, 11, 59 Stat . 606.)

Section 78, act Feb. 28, 1920, ch. 91, 1211, 41 Stat.

464, related to execution of the powers by President .

$ 65a. Repealed. Pub. L. 95-473, § 4(b), (c), Oct. 17,

Section 79, act Feb. 28, 1920, ch . 91, 1212, as added

1978, 92 Stat. 1466, 1470

Feb. 26, 1921, ch. 72, 41 Stat. 1145, related to further

Section repealed subject to an exception related to certificates and warrants

.

transportation of oil by pipeline. For disposition of 0 80

. Transferred this section in revised Title 49, Transportation, see

Table at beginning of Title 49 . See, also, notes following Table .

CODIFICATION

Prior to repeal, section read as follows : Section, act Feb . 28, 1920, ch. 91, 1213, as added

Aug. 13, 1940, ch. 666, 54 Stat . 788, which related to

§ 65a Readjustment of fares, rates, and charges to shippers disposition of securities, was transferred to section 316

The Interstate Commerce Commission, in the exer- of Title 40, Public Buildings, Property, and Works .

cise of its power to prescribe just and reasonable rates,

fares, and charges, shall give due consideration to the

CHAPTER 4-BILLS OF LADING increased revenues which carriers will receive as a

result of the enactment of section 65 of this Appendix, sec. so that such increased revenues will be reflected in ap- 81 .

Transportation included.

propriate readjustments in rates, fares, and charges to 82 Straight bill of lading. shippers . 83 . Order bill of lading ; negotiability.

(Dec. 12, 1945, ch . 573, 4 3, 59 Stat. 607.)

84 . Order bills in parts or sets ; liability of carrier.

66. Transferred

85 . Indorsement on duplicate bill; liability.

CODIFICATION

86 .Indorsement on straight bill.

87 . Effect of insertion of name of person to be

Section, acts Sept. 18, 1940, ch. 722, title III, § 322, 54 notified .

Stat. 955 ; Aug 26, 1958, Pub. L. 85-762, § 2, 72 Stat. 88.

Duty to deliver goods on demand; refusal.

860; Oct. 25, 1972, Pub. L. 92-550, 4 1, 86 Stat . 1163; 89 .Delivery ; when justified .

Jan. 2, 1975, Pub . L. 93-604, title III, 1201, 88 Stat. g0.Liability for delivery to person not entitled

1960, relating to the payment for transportation of thereto.

persons or property for or on behalf of the United 91 . Liability for delivery without cancellation of

States by any carrier or forwarder, was transferred to bill.

section 244 of former Title 31, prior to its repeal by 92 . Liability in case of delivery of part of goods .

Pub. L . 97-258, § 5(b), Sept. 13, 1982, 96 Stat. 1075, the 93 .Alteration of bill .

first section of which enacted Title 31, Money and Pi- 94. Loss, etc., of bill; delivery of goods on order

nance . See section 3726 of Title 31 .

of court .

PRIOR PROVISIONS

95.

Liability on bill marked "duplicate" .

96. Claim of title as excuse for refusal to deliver .

Provisions formerly classified to this section, act 97. Interpleader of conflicting claimants .

Sept. 18, 1940, ch. 722, title III, 1321, 54 Stat. 954, are 98.

Reasonable time for procedure allowed in

classified to section 65 of this Appendix . case of adverse claim.

99 . Failure to deliver ; claim of third person as

§ 67 . Transferreddefense.

CODIFICATION

100. Loading by carrier counting packages, etc. ;

contents of bill .

Section, act Sept. 18, 1940, ch. 722, title III, § 322, 54 101 .

Loading by shipper ; contents of bill ; ascerStat. 955, which related to payment for transportation

tainment of kind and quantity on request.