Our program topic is whether deregulation in the railroad industry has gone too far.
Some elaboration obviously is required.
Since passage of the Staggers Rail Act of 1980, we have seen the Federal transportation regulatory agencies follow a policy which focuses upon carrier revenue adequacy rather than protection of shippers from railroad market power. That policy has led to the insulation of rail carriers from accountability, and it has encouraged consolidation to the point of virtual elimination of competitive alternatives. This tilting of policy in favor of the railroads recently was admitted by a former General Counsel of the Interstate Commerce Commission who served during the time of implementation of the Staggers Rail Act. The Interstate Commerce Commission and its successor, the Surface Transportation Board, effectively have regulated most shippers out of remedies intended to be provided by the Interstate Commerce Act and preserved by the Staggers Act. This entails constructing, on paper, a hypothetical, efficient railroad, and determining the rates necessary to cover costs and provide a fair return of capital.