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INTERSTATE COMMERCE ACT

PART I

(as amended through 1976)

Title 49.—Chapter 1, U.S. Code

REGULATION IN GENERAL; CAR SERVICE; ALTERATION OF LINE

54 Stat. 899. 62 Stat. 602.

72 Stat. 570. 80 Stat. 168.

line.

Sec. 1. [As amended June 29, 1906, April 13, 1908, 24 Stat: 379. June 18, 1910, May 29, 1917, August 10, 1917, February 35 Stat. 6o. 28, 1920, June 19, 1934, August 9, 1935, September 18, 40 Stat. 101. 1940, June 24, 1948, August 2, 1949, August 12, 1958, 41 Stat. 474. May 26, 1966, January 2, 1974, February 5, 1976. [49 49 Stat. 543. U.S.C.$ 1.]

(1) That the provisions of this part shall apply to 63 Stat. 485. common carriers engaged in

(a) The transportation of passengers or property Act applies to wholly by railroad, or partly by railroad and partly by carriers water when both are used under a common control,

engaged in

-transpormanagement, or arrangement for a continuous carriage tation by rail

by or shipment; or

railroad and (b) The transportation of oil or other commodity, waralnisporexcept water and except natural or artificial gas, by pipe tation by pipe line, or partly by pipe line and partly by railroad or by water.

- from one State or Territory of the United States, or the District of Columbia, to any other State or Territory of the United States, or the District of Colum- Between what bia, or from one place in a Territory to another place in plies within the same Territory, or from any place in the United States through a foreign country to any other place in the United States, or from or to any place in the United States to or from a foreign country, but only in so far as such transportation takes place within the United States.

NOTE.—Comparable general provision as to applicability, part II, 88 202(a) and 203(a); part III, § 302; part IV, § 402.

Applicability of provisions of part I, II, and III to transportation subject to more than one part, see $$ 202 (c) and 303 (a), (f); and (as to motor and water transportation, respectively, by an express company) 88 203 (a) (14) and 302 (d).

Sec. 1 (a) (5) of Title II of the act creating the Washington Metropolitan Area Transit Commission, Sept. 15, 1960, 74 Stat. 1035, as amended Oct. 9, 1962, 76 Stat. 764–5, provides that the act shall not apply to “transportation performed by a common carrier by railroad subject to part I of the Interstate Commerce Act, as amended."

United States.

48 Stat. 1102.

to intrastate transportation.

72 Stat. 570.

48 Stat. 1102.

cable to water

water line.

54 Stat. 899.

Act applies to (2) The provisions of this part shall also apply to transportation only within such transportation of passengers and property, but United States. only in so far as such transportation takes place within

the United States, but shall not apply—inapplicable (a) To the transportation of passengers or property,

or to the receiving, delivering, storage, or handling of property, wholly within one State and not shipped to or from a foreign country from or to any place in the United States as aforesaid, except as otherwise provided in this part;

(b) or

c) To the transportation of passengers or property Act inappli- by a carrier by water where such transportation would transportation not be subject to the provisions of this part except for merely because the fact that such carrier absorbs, out of its port-to-port rall charges absorbed by

water rates or out of its proportional through rates, any switching, terminal, lighterage, car rental, trackage, handling, or other charges by a rail carrier for services within the switching, drayage, lighterage, or corporate limits of a port terminal or district.

NOTE.—Comparable applicability provisions, part II, § 202 (a); part III, § 302 (i); nonapplicability to intrastate commerce, part II, § 202 (b); part III, 88 302 (i), 303 (j) (k).

(3) (a) The term "common carrier” as used in this her maclcomed part shall include all pipe-line companies; express com

panies; sleeping-car companies; and all persons, natural or artificial, engaged in such transportation as aforesaid as common carriers for hire. Wherever the word "carrier" is used in this part it shall be held to mean "com

mon carrier." The term "railroad" as used in this part What included shall include all bridges, car floats, lighters, and ferries

used by or operated in connection with any railroad, and also all the road in use by any common carrier operating a railroad, whether owned or operated under a contract, agreement, or lease, and also all switches, spurs, tracks, terminals, and terminal facilities of every kind used or necessary in the transportation of the persons or property designated herein, including all freight depots, yards, and grounds, used or necessary in the

transportation or delivery of any such property. The What included

term “transportation" as used in this part shall include portation." locomotives, cars, and other vehicles, vessels, and all in

strumentalities and facilities of shipment or carriage, irrespective of ownership or of any contract, express or implied, for the use thereof, and all services in connection with the receipt, delivery, elevation, and transfer in

transit, ventilation, refrigeration or icing, storage, and "Person"

handling of property transported. The term “person" as used in this part includes an individual, firm, copartnership, corporation, company, association, or joint-stock

mon carrier." 48 Stat. 1102. Carrier" means "common carrier."

in term "railroad."

in term “trans

defined.

association; and includes a trustee, receiver, assignee, 54 Stat. 899. or personal representative thereof.

NOTE.—Comparable provisions, as to "transportation” under part II, § 203 (a) (19) ; part III, § 302 (h); as to “transportation facility" under part III, 8 302 (g) ; limitation of act as to transportation intraharbor or by small watercraft, $ 303 (g).

(b) For the purposes of section 5, 12 (1), 20, 204 (a) 54 Stat. 899. (7), 210, 220, 304 (b), 310, and 313 of this Act, where strued. reference is made to control (in referring to a relationship between any person or persons and another person or persons), such reference shall be construed to include actual as well as legal control, whether maintained or exercised through or by reason of the method of or circumstances surrounding organization or operation through or by common directors, officers, or stockholders, a voting trust or trusts, a holding or investment company or companies, or through or by any other direct or indirect means; and to include the power to exercise control. NOTE.--Comparable provision, part IV, § 402 (a) (8).

(4) It shall be the duty of every common carrier sub- 54 Stat. 900. ject to this part to provide and furnish transportation Common-car: upon reasonable request therefor, and to establish reason- provide and able through routes with other such carriers, and just furnish transand reasonable rates, fares, charges, and classifications Through routes applicable thereto; and it shall be the duty of common auds just and carriers by railroad subject to this part to establish reasonable through routes with common carriers by water subject to part III, and just and reasonable rates, fares, charges, and classifications applicable thereto. It shall be the duty of every such common carrier establishing through routes to provide reasonable facilities for oper- Facilities and ating such routes and to make reasonable rules and regu- through routes. lations with respect to their operation, and providing for reasonable compensation to those entitled thereto; and in Divisions case of joint rates, fares, or charges, to establish just, unduly preferreasonable, and equitable divisions thereof, which shall ential or

prejudicial. not unduly prefer or prejudice any of such participating carriers.

NOTE.—Compare (as to through routes and joint rates) under part II, § 216 (a), common carriers of passengers by motor vehicle; $ 216 (c), common carriers of property by motor vehicle, part III, § 305 (b).

Duty to furnish transportation upon reasonable request, part
III, § 305 (a); part IV, § 404 (a).

(5) (a) All charges made for any services rendered or 54 Stat. 900. to be rendered in the transportation of passengers or Transportation property, or in connection therewith, shall be just and charges to be reasonable, and every unjust and unreasonable charge reasonable. for such service or any part thereof is prohibited and 48 Stat. 1102. declared to be unlawful. The provisions of this subdivi

rates.

63 Stat. 485.

90 Stat. 34.

90 Stat. 35.

sion shall not apply to common carriers by railroad subject to this part.

(b) Each rate for any service rendered or to be rendered in the transportation of persons or property by any common carrier by railroad subject to this part shall be just and reasonable. A rate that is unjust or unreasonable is prohibited and unlawful. No rate which contributes or which would contribute to the going concern value of such a carrier shall be found to be unjust or unreasonable, or not shown to be just and reasonable, on the ground that such rate is below a just or reasonable minimum for the service rendered or to be rendered. A rate which equals or exceeds the variable costs (as determined through formulas prescribed by the Commission) of providing a service shall be presumed, unless such presumption is rebutted by clear and convincing evidence, to contribute to the going concern value of the carrier or carriers proposing such rate (hereafter in this paragraph referred to as the 'proponent carrier'). In determining variable costs, the Commission shall, at the request of the carrier proposing the rate, determine only those costs of the carrier proposing the rate and only those costs of the specific service in question, except where such specific data and cost information is not available. The Commission shall not include in variable cest any expenses which do not vary directly with the level of service provided under the rate in question. Notwithstanding any other provision of this part, no rate shall be found to be unjust or unreasonable, or not shown to be just and reasonable, on the ground that such rate exceeds a just or reasonable maximum for the service rendered or to be rendered, unless the Commission has first found that the proponent carrier has market dominance over such service. A finding that a carrier has market dominance over a service shall not create a presumption that the rate or rates for such service exceed a just and reasonable maximum. Nothing in this paragraph shall prohibit a rate increase from a level whch reduces the going concern value of the proponent carrier to a level which contributes to such going concern value and is otherwise just and reasonable. For the purposes of the preceding sentence, a rate increase which does not raise a rate above the incremental costs (as determined through formulas prescribed by the Commission of rendering the service to which such rate applies shall be presumed to be just and reasonable. (c) As used in this part, the terms

(i) 'market dominance' refers to an absence of effective competition from other carriers or modes of transportation, for the traffic or movement to which a rate applies; and

(ii) órate' means any rate or charge for the transportation of persons or property.

"Market dominance."

“Rate."

.

services with transmission

of property

(d) Within 240 days after the date of enactment of this subdivision, the Commission shall establish, by rule, standards and procedures for determining, in accordance 49 USC 15. with section 15(9) of this part, whether and when a carrier possesses market dominance over a service rendered or to be rendered at a particular rate or rates. Such rules shall be designed to provide for a practical determination without administrative delay. The Commission shall solicit and consider the recommendations of the Attorney General and of the Federal Trade Commission in the course of establishing such rules

NOTE.—Comparable provisions, part II, 8 216(a)-(d); part III, § 305 (a); part IV, § 404 (a).

(51/2) Nothing in this Act shall be construed to prevent 54 Stat. 900. any common carrier subject to this Act from entering Exchange of into or operating under any contract with any telephone, telegraph, or cable company, for the exchange of their companies. services.

(6) It is hereby made the duty of all common carriers subject to the provisions of this part to establish, observe, and enforce just and reasonable classifications of Just and property for transportation, with reference to which classifications rates, tariffs, regulations, or practices are or may be

for transportamade or prescribed, and just and reasonable regulations tion required. and practices affecting classifications, rates, or tariffs, Just and the issuance, form, and substance of tickets, receipts, and transportation bills of lading, the manner and method of presenting, and practices marking, packing, and delivering property for transpor- required. tation, the facilities for transportation, the carrying of personal, sample, and excess baggage, and all other matters relating to or connected with the receiving, handling, transporting, storing, and delivery of property subject to the provisions of this part which may be necessary or proper to secure the safe and prompt receipt, handling, transportation, and delivery of property subject to the provisions of this part upon just and reasonable terms, and every unjust and unreasonable classification, regulation, and practice is prohibited and declared to be unlaw- --unjust and ful. Demurrage charges shall be computed, and rules and prohibited. regulations relating to such charges shall be established, in such a manner as to fulfill the national needs with respect to (a) freight car utilization and distribution, and (b) maintenance of an adequate freight car supply avail- 90 Stat. 46. able for transportation of property.

NOTE.—Comparable provision under part II, § 216 (a), (b); part III, § 305 (a) ; part IV, § 404 (a).

(7) No common carrier subject to the provisions of 35 Stat. 60. this part shall, after January first, nineteen hundred and 36 Stat. 544 seven, directly or indirectly, issue or give any interstate

Rules and regulations.

34 Stat. 581.

.

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