Opinion ID: 363964
Heading Depth: 3
Heading Rank: 1

Heading: The X-336 Proceeding.

Text: 8 On 9 November 1976 the nation's railroads petitioned the ICC for permission to file a master tariff and connecting supplements in order to implement a general four percent increase on freight rates nationwide. The petition showed that the railroads had experienced increases in annual operating costs of nearly $1 billion. 13 Even were the rate increase implemented nationwide on both interstate and intrastate traffic, there would have been a revenue shortfall of some $300 million. 14 The Commission permitted 15 the railroads to file master tariff X-336 to effect the four percent increase nationwide for interstate traffic. Finding the railroads' revenue needs unquestionable, the ICC concluded that it was unnecessary to suspend and investigate the X-336 tariff as permitted under section 15(8). 16 The Commission concluded that the increase was necessary to prevent a further decline in the railroads' overall financial condition; that the railroads' rate of return continued to be substandard; and that, absent the increase, the railroads would not have sufficient funds . . . to defray the cost escalations established. 17 9