united states code: interstate commerce act, part i

TITLE 49.-TRANSPORTATION

Chap. Sec.

1. Interstate Commerce Act, Part I; general

provisions and railroad and pipe line car-

riers ------------------------------------- 1

2. Legislation supplementary to "Interstate

Commerce Act" ----------------------- 41

3. Termination of Federal control ------------- 71

4. Bills of lading ----------------------------- 81

5. Inland waterways transportation ----------- 141

6. Air commerce -------------------------- 171

7. Coordination of interstate railroad transpor-

tation ------------------------------ 250

8. Interstate Commerce Act, Part II; motor

carriers ---------------------------------- 301

9. Civil Aeronautics Act ---------------------- 401

10. Training of civil aircraft pilots ------------ 751

11. Seizure and forfeiture of carriers transport-

ing, etc., contraband articles ------------ 781

12. Interstate Commerce Act, Part III; water

carriers ----------------------------- 901

13. Interstate Commerce Act, Part.IV; FreightForwarders ------------------------- 1001

14. Federal-Aid for Public Xirport Development- 1101

Chapter 1.-INTERSTATE COMMERCE ACT, PART

1; GENERAL PROVISIONS AND RAILROAD AND

PIPE LINE CARRIERS

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

(1) Carriers subject to regulation.(2) Transportation subject to regulation.(3) Definitions.(4) Duty to furnish transportation and estab-

lish through routes; division of jointrates.

(5) Just and reasonable charges required;classification of messages, and rates; ex-change of services.

(6) Classification of property for transporta-tion; regulations and practices.

(7) Free transportation for passengers pro-hibited; exceptions; penalty.

(8) Transportation of commodity manufac-tured or produced by railroad forbidden.

(9) Switch connections and tracks.(10) "Car service" defined.(11) Duty to furnish car service; rules and regu-

lations.(12) Distribution of coal cars; failure to pro-

rate; penalty.(13) Rules and regulations as to car service to

be filed, etc.(14) Establishment by commission of rules,

etc., as to car service.(15) Powers of commission in case of emergency.(16) Rerouting of traffic on failure of initial

carrier to serve public.(17) Directions of Commission as to car service;

disobedience; rights of States; bribery.(18) Extension or abandonment of lines; cer-

tificate required; contracts for joint useof spurs, switches, etc.

(19) Application for certificate of commission;notice and hearing.

(20) Issuance of certificate by commission; un-lawful extension or abandonment oflines.

Page 5441

Sec.Sec.1. Regulation to general; car service; alteration of

line-Continued.(21) Power of commission to require adequate

facilities or extension of line; penalty.(22) Construction, etc., of spurs, switches, etc.,

within State.2. Special rates and rebates prohibited.3. Preferences; interchange of traffic; terminal facili-

ties.(1) Undue preferences or prejudices pro-

hibited.(ia) Export rates on farm commodities; Com-

mission's power to carry out policy.(2) Payment of freight as prerequisite to de-

livery.(3) Liability of shipper-consignee for freight

where delivery is made to another partyupon instruction.

(4) Interchange of traffic.(5) Terminal facilities; use of and compensa-

tion for.4. L ong and short haul charges; competition with water

routes.(1) Charges for long and short hauls and on

through route.(2) Competition of railroads with water routes;

change of rates.5. Combinations and consolidations of carriers.

(1) Pooling; division of traffic, service, orearnings.

(2) Unifications, mergers, and acquisitions ofcontrol.

(3) Noncarrier deemed carrier upon acquiringcontrol.

(4) Control effected by other than prescribedmethods.

(5) Transactions deemed to effectuate controlor management.

(6) Affiliation with a carrier defined.(7) Investigation by Commission of effectua-

tion of control by nonprescribedmethods.

(8) Jurisdiction of injunctions, etc., againstviolations of section or orders.

(9) Supplemental orders by Commission.(10) Unifications, consolidations, etc., of motor

carriers only.(11) Plenary nature of authority under section.(12) Separability clause.(13) Carrier defined.(14) Interest in competing water carrier; pro-

hibition of.(15) Same; determination of fact of competi-

tion.(16) Same; permission of interest in competing

water carrier.5a. Combinations and consolidations existing prior to

June 16, 1933.6. Schedules and statements of rates, etc., joint rail

and water transportation.(1) Schedule of rates, fares, and charges; filing

and posting.(2) Schedule of rates through foreign country.(3) Change in rates, fares, etc.; notice re-

quired; simplification of schedules.(4) Joint tariffs.(5) Copies of traffic contracts to be filed.(6) Form and manner of publishing, filing,

and posting schedules, unlawful use.(7) Transportation without filing and publish-

ing rates forbidden; rebates; privileges.(8) Preference to shipments for United States.


Sec.6. Schedules and statements of rates, etc., joint rail

and water transportation-Continued.(9) Schedule lacking notice of effective date.

(10) Penalty for failure to comply with regula-tions.

(11) Jurisdiction of Commission over transpor-tation by rail and water.

(12) Jurisdiction of Commission over carrierscontracting with water carriers operat-ing to foreign posts.

7. Combinations to prevent continuous carriage offreight prohibited.

8. Liability in damages to persons injured by violationof law.

9. Remedies of persons damaged; election; witnessds.10. Violation of regulations by carrier; discrimination;

penalties.(1) Violation by carrier or officer; penalty.(2) False billing or classification by carrier;

penalty.(3) Obtaining lower rates by false billing, etc.,

or by false claim; penalty.(4) Inducing unjust discrimination; penalty;

liability for damages.11. Interstate Commerce Commission; appointment,

term, and qualifications of commissioners.12. Authority and duties of commission; witnesses; depo-

sitions.(1) Authority, duties, and proceedings of com-

mission, witnesses.(2) Attendance of witnesses and production of

documents.(3) Compelling attendance and testimony of

witnesses, etc.(4) Depositions.(5) Oath; subscription of testimony on depo-

sition.(6) Deposition in foreign country; filing of dep-

ositions.(7) Fees for depositions.

13. Complaints to and investigations by Commission.(1) Complaint to Commission of violation of

law by carrier; reparation; investigation.(2) Complaints by State commissions; inquiry

on Commission's own motion; expensesof State commissions.

(3) Investigation involving State regulations;conference of State and interstate com-missions.

(4) Duty of Commission where State regula-tions result in discrimination.

14. Reports and decisions of Commission.(1) Reports of investigations by Commission.(2) Record of reports; copies.(3) Publication of reports and decisions; print-

ing and distribution of annual reports.15. Determination of rates, routes, etc.; routing of

traffic; disclosures, etc.(1) Commission empowered to determine and

prescribe rates, classifications, etc.(2) Orders of Commission.(3) Establishment of through routes, joint

classifications, joint rates, fares, etc.(4) Through routes to embrace entire length

of railroad; temporary through routes.(5) Transportation of livestock in carload

lots; services included.(6) Commission to establish just divisions of

joint rates, fares, or charges; adjust-ments.

(7) Commission to determine lawfulness ofnew rates; suspension; refunds.

(8) Shipper's choice of route to be observed.(9) Liability of carriers where property is

delivered contrary to routing instruc-tions.

(10) Direction of unrouted traffic by Commis-sion.

(11) Disclosure or solicitation of informationconcerning shipments unlawful; excep-tions.

Sec.15. Determination of rates, routes, etc.; routing of

traffic; disclosures, etc.-Continued.(12) Penalty for violation of preceding provi-

sions.(13) Allowance for service or facilities fur-

nished by shipper.(14) Other powers of Commission not excluded.

15a. Fair return for carriers.15b. Collection of excess income discontinued; general

railroad contingent fund liquidated; distribu-tion of moneys; computation of tax liabilities.

16. Orders of Commission and enforcement thereof;forfeitures.

(1) Orders by Commission for payment ofdamages.

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

(3) Limitation of actions.(4) Joinder of parties; process; judgment.(5) Service of order of Commission and notices

of proceedings.(6) Suspension or modification of orders.(7) Compliance with orders.(8) Failure of carrier or officer to obey orders;

penalty.(9) Suit for recovery of forfeiture.

(10) District attorneys to prosecute for for-feitures; costs and expenses.

(11) Employment of attorneys by Commission.(12) Proceedings to enforce orders other than

for payment of money.(13) Copies of schedules, tariffs, contracts, etc.,

kept as public records; evidence.16a. Repealed.17. Commission procedure; delegation of duties; re-

hearings.(1) Divisions of Commission; organization;

composition.(2) Reference of matters to divisions, indi-

vidual Commissioners or boards.(8) Conduct of proceedings; seal; oaths; quo-

rum; rules.(4) Powers of divisions, boards, etc.; effect of

orders, etc.(5) Findings, etc., of Commissioner or board;

accompanying statement and recom-mended order; copies to parties; excep-tions; recommended order as Commis-sion's order.

(6) Rehearing, reargument, or reconsiderationof decisions, orders, and requirements,

(7) Reversal or modification after rehearing,etc.

(8) Stay of decisions, etc., not effective at timeof application for rehearing, etc.

(9) Judicial relief from decisions, etc., upondenial or other disposition of applica-tion for rehearing, etc.

(10) Reference of administrative matters toexaminers.

(11) Intervention of representatives of em-ployees.

(12) Admission to practice before Commission.18. Employees; appointment and compensation; witness

fees; expenses.(1) Commissioners' salaries; secretary and em-

ployees; compensation; witness fees.(2) Expenses of Commission.

19. Office and sessions.19a. Valuation of property of carriers.

(a) Physical valuation of property of carriers;classification and inventory.

(b) Cost of property; elements considered Indetermination; gifts, grants, etc.

(c) Investigation; procedure and forms.(d) Time for beginning investigation; reports

to Congress.(e) Aid of carrier required; rules and regula-

tions; inspection of records.(f) Valuation of extensions and improvements;

revisions; reports.

Page 5442


See.19a. Valuation of property of carriers-Continued.

(g) Reports and information to be furnishedby carriers.

(h) Notice of completion of tentative valuation;protests; finality of report.

(1) Protests; hearings; changes in valuations;final valuation and classification.

(j) Effect of evidence as to values; modificationof orders.

(k) Receivers and trustees of carriers affected;noncompliance with law; penalty.

(1) Mandamus to compel compliance with law.20. Reports, records, and accounts of carriers; manda-

mus; liability of Initial carrier for loss, etc.(1) Reports from carriers and lessors.(2) Period covered by and time for making

reports; oaths for reports.(3) Uniform system of accounts.(4) Depreciation charges.(5) Forms of accounts, records, and memo-

randa; access to records, etc., by Com-mission or agents.

(6) Persons furnishing cars or protectionagainst elements; access to and forms ofrecords, etc.; reports.

(7) Penalties and forfeitures in connectionwith accounts, records, reports, etc.

(8) Definitions.(9) Jurisdiction to compel compliance by

mandamus.(10) Special agents or examiners.(11) Liability of initial and delivering carrier

for loss; limitation of liability; noticeand filing of claim.

(12) Recovery by initial or delivering carrierfrom connecting carrier.

20a. Securities of carriers; issuance, etc.(1) Carrier defined.(2) Issuance of securities; assumption of obli-

gations; authorization.(3) Scope of Commission's authority.(4) Form and contents of application; oath

and signature.(5) Disposition of securities described in ap-

plication, etc.(6) Notice of application to governors of

States; intervention; hearings.(7) Jurisdiction of Commission as exclusive

and plenary.(8) Guaranty of securities.(9) Issue of short-term notes; certificate of

notification; proviso.(10) Reports by carriers as to securities or pro-

ceeds.(11) Securities issued contrary to law void;

effect; penalty.(12) Restrictions on actions of officers and di-

rectors; penalty.21. Annual reports of Commission.22. Restrictions.23. Mandamus to obtain equal facilities for shippers.25. Repealed.26. Safety appliances, methods, and systems.

(a) Definition of carrier.(b) Order to install systems, etc.; modification;

negligence of carrier.(c) Filing report on rules, standards, and In-

structions with Commission; time; modi-fication.

(d) Inspection by Commission; personnel.(e) Unlawful use of system, etc.(f) Report of failure of system, etc., and acci-

dents.(g) Duties and powers of Commission.(h) Penalties; enforcement.

27. Short title.

INTERSTATE COMbmrcE ACT

The Interstate Commerce Act of Feb. 4, 1887, ch. 104,24 Stat. 379, as it existed prior to its division into parts,is embodied in chapter 1 of this title. The original act

was designated "part I" and a new part II, comprisingchapter 8 of this title, was added by act Aug. 9, 1935, ch.498,9 -Stat. 543. Part III, constituting chapter 12 of thistitle, was added by act Sept. 18, 1940, ch. 722, title II, § 201,54 Stat. 929. Part IV constituting chapter 13 of this title,was added by act May 16, 1942, ch. 318, § 1, 56 Stat. 284.

NATIONAL TRANSPORTATION POLICY

Act Sept. 18, 1940, ch. 722, title I, § 1, 54 Stat. 899,amended the Interstate Commerce Act by inserting beforepart I thereof (chapter 1 of this title) the followingprovision entitled "National Transportation Policy:"

"It Is hereby declared to be the national transportationpolicy of the Congress to provide for fair and impartialregulation of all modes of transportation subject to theprovisions of this act (chapters 1, 8, and 12 of this title),so administered as to recognize and preserve the inherentadvantages of each; to promote safe, adequate, economical,and efficient service and foster sound economic conditionsIn transportation and among the several carriers; to en-courage the establishment and maintenance of reasonablecharges for transportation services, without unjust dis-criminations, undue preferences or advantages, or unfairor destructive competitive practices; to cooperate with theseveral States and the duly authorized officials thereof;and to encourage fair wages and equitable working condi-tions--all to the end of developing, coordinating, and pre-serving a national transportation system by water, high-way, and rail, as well as other means, adequate to meetthe needs of the commerce of the United States, of thePostal Service, and of the national defense. All of theprovisions of this act (chapters 1, 8, and 12 of this title),shall be administered and enforced with a view to carryingout the above declaration of policy."

RATE MAKING POLICY

See section 55 of this title.

INVESTIGATION OF VARIOUS MODES OF TRANSPORTATION

Title III, part I of act Sept. 18, 1940, ch. 722, § § 301-306,54 Stat. 952-954, establishing a Board of Investigation andResearch to conduct certain investigations in connectionwith national transportation problems, was extended toSeptember 18, 1944, by Proc. No. 2559, June 26, 1942, 7P. R. 4809.

REPEALSThe provisions of this chapter, insofar as they related

to communication by wire or wireless, or to telegraph,telephone, or cable companies operating by wire or wire-less, except the last proviso of section 1 (5) and the pro-visions of section 1 (7), were repealed by act June 19,1934, ch. 652, § 602 (b), 48 Stat. 1102. See chapter 5 ofTitle 47, Telegraphs, Telephones, and Radiotelegraphs.

§ 1. Regulation in general; car service; alteration ofline.

(1) Carriers subject to regulation.

The provisions of this chapter shall apply to com-

mon carriers engaged in-

(a) The transportation of passengers or property

wholly by railroad, or partly by railroad and partly

by water when both are used under a common con-

trol, management, or arrangement for a continuous

carriage or shipment; or

(b) The transportation of oil or other commodity,

except water and except natural or artificial gas, by

pipe line, or partly by pipe line and partly by rail-

road 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

Columbia, or from one place in a Territory to an-

other place in the same Territory, or from any place

in the United States through a foreign country to

any other place in the United States, or from or to

any place in the United States to or from a foreign

Page 5443


oountry, but only insofar as such transportation or

transmission takes place within the United States.

(2) Transportation subject to regulation.The provisions of this chapter shall also apply to

such transportation of passengers and property andtransmission of intelligence, but only insofar as such

transportation or transmission takes place within theUnited States, but shall not apply-

(a) To the transportation of passengers or prop-

erty, or to the receiving, delivering, storage, or han-dling of property, wholly within one State and notshipped to or from a foreign country from or to anyplace in the United States as aforesaid:

(b) or(c) To the transportation of passengers or prop-

erty by a carrier by water where such transportationwould not be subject to the provisions of this chapter

except for the fact that such carrier absorbs, out ofits port-to-port water rates or out of its proportionalthrough rates, any switching, terminal, lighterage,car rental, trackage, handling, or other charges by arail carrier for services within the switching, drayage,

lighterage, or corporate limits of a port terminal ordistrict.

(3) Definitions.(a) The term "common carrier" as used in this

chapter shall include all pipe-line companies; expresscompanies; sleeping-car companies; and all persons,natural or artificial, engaged in such transportationas aforesaid as common carriers for hire. Whereverthe word "carrier" is used in this chapter it shall be

held to mean "common carrier." The term "railroad"as used in this chapter shall include all bridges, carfloats, lighters, and ferries used by or operated inconnection with any railroad, and also all the road inuse by any common carrier operating a railroad,whether owned or operated under a contract, agree-ment, or lease, and also all switches, spurs, tracks, ter-minals, and terminal facilities of every kind used ornecessary in the transportation of the persons orProperty designated herein, including all freight de-pots, yards,. and grounds, used or necessary in thetransportation or delivery of any such property. Theterm "transportation" as used in this chapter shallinclude locomotives, cars, and other vehicles, vessels,

and all instrumentalities and facilities of shipment orcarriage, irrespective of ownership or of any contract,express or implied, for the use thereof, and all serv-

ices in connection with the receipt, delivery, elevation,and transfer in transit, ventilation, refrigeration oricing, storage, and handling of property transported.The term "person" as used in this chapter includesan individual, firm, copartnership, corporation, com-pany, association, or joint-stock association; and in-

cludes a trustee, receiver, assignee, or personal rep-resentative thereof.

(b) For the purposes of sections 5, 12 (1), 20,304 (a) (7), 310, 320, 904 (b), 910, and 913 of thistitle, where reference is made to control (in referringto a relationship between any person or persons andanother person or persons), such reference shall be

construed to include actual as well as legal control,whether maintained or exercised through or by rea-

son of the method of or circumstances surroundingorganization or operation, through or by common

directors, officers, or stockholders, a voting trust ortrusts, a holding or Investment company or com-panies, or through or by any other direct or indirectmeans; and to include the power to exercise control.

(4) Duty to furnish transportation and establishthrough routes; division of joint rates.

It shall be the duty of every common carrier sub-ject to this chapter to provide and furnish transpor-tation upon reasonable request therefor, and to es-tablish reasonable through routes with other suchcarriers, and just and reasonable rates, fares,charges, and classifications applicable thereto; and itshall be the duty of common carriers by railroadsubject to this chapter to establish reasonablethrough routes with common carriers by water sub-

ject to chapter 12 of this title, and just and reason-able rates, fares, charges, and classifications appli-cable thereto. It shall be the duty of every such

common carrier establishing through routes to pro-vide reasonable facilities for operating such routesand to make reasonable rules and regulations withrespect to their operation, and providing for reason-able compensation to those entitled thereto; and incase of joint rates, fares, or charges, to establishjust, reasonable, and equitable divisions thereof,which shall not unduly prefer or prejudice any ofsuch participating carriers.

(5) Just and reasonable charges required; classifica-tion of messages, and rates; exchange of services.

(a) All charges made for any service rendered orto be rendered in the transportation of passengersor property as aforesaid, or in connection therewith,shall be just and reasonable, and every unjust andunreasonable charge for such service or any part

thereof is prohibited and declared to be unlawful.(b) Nothing in this chapter and chapters 8 and

12 of this title shall be construed to prevent anycommon carrier subject to this chapter and chapters

8 and 12 of this title from entering into or operatingunder any contract with any telephone, telegraph,or cable company, for the exchange of their services.

(6) Classification of property for transportation; reg-ulations and practices.

It is made the duty of all common carriers subjectto the provisions of this chapter to establish, observe,and enforce just and reasonable classifications ofproperty for transportation, with reference to which-rates, tariffs, regulations, or practices are or may

be made or prescribed, and just and reasonable reg-ulations and practices affecting classifications, rates,or tariffs, the issuance, form, and substance oftickets, receipts, and bills of lading, the manner andmethod of presenting, marking, packing, and deliv-ering property for transportation, the facilities fortransportation, the carrying of personal, sample, and

excess baggage, and all other matters relating to orconnected with the receiving, handling, transporting,storing, and delivery of property subject to the pro-visions of this chapter which may be necessary orproper to secure the safe and prompt receipt, han-dling, transportation, and delivery of property subject

to the provisions of this chapter upon just and reason-able terms, and every unjust and unreasonableclassification, regulation, and practice is prohibitedand declared to be unlawful.

Page 5444


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

No common carrier subject to the provisions ofthis chapter, shall, directly or indirectly, issue or giveany interstate free ticket, free pass, or free transpor-tation for passengers, except to its employees, itsofficers, surgeons, physicians, and attorneys at law,and the families of any of the foregoing; to theexecutive officers, general chairmen, and counsel ofemployees' organizations when such organizationsare authorized and designated to represent employeesin accordance with the provisions of sections 151-163and 181-188 of Title 45; to ministers of religion,traveling secretaries of railroad Young Men's Chris-tian Associations, inmates of hospitals and charitableand eleemosynary institutions, and persons exclu-sively engaged in charitable and eleemosynary work;to indigent, destitute and homeless persons, and tosuch persons when transported by charitable societiesor hospitals, and the necessary agents employed insuch transportation; to inmates of the NationalHomes or State Homes for Disabled Volunteer Sol-diers, and of Soldiers' and Sailors' Homes, includingthose about to enter and those returning home afterdischarge; to necessary caretakers of livestock, poul-try, milk, and fruit; to employees on sleeping cars,express cars, and to linemen of telegraph and tele-phone companies; to railway mail-service employeesand persons in charge of the mails when on dutyand traveling to and from duty, and all duly accred-ited agents and officers of the Post Office Departmentand the Railway Mail Service and post-office inspec-tors while traveling on official business, upon theexhibition of their credentials; to customs inspectors,and immigration inspectors; to newsboys on trains,baggage agents, witnesses attending any legal investi-gation in which the common carrier is interested,persons injured in wrecks and physicians and nursesattending such persons: Provided, That this provisionshall not be construed to prohibit the interchange ofpasses for the officers, agents, and employees of com-mon carriers, and their families; nor to prohibit anycommon carrier from carrying passengers free withthe object of providing relief in cases of general epi-demic, pestilence, or other calamitous visitation: Andprovided further, That this provision shall not beconstrued to prohibit the privilege of passes or franks,or the exchange thereof with each other, for the offi.cers, agents, employees, and their families of suchtelegraph, telephone, and cable lines, and the officers,agents, employees and their families of other com-mon carriers subject to the provisions of this chapter:Provided further, That the term "employees" as usedin this paragraph shall include furloughed, pensioned,and superannuated employees, persons who havebecome disabled or infirm in the service of any suchcommon carrier, and the remains of a person killedin the employment of a carrier and exemployeestraveling for the purpose of entering the service ofany such common carrier; and the term "families"as used in this paragraph shall include the familiesof those persons named in this proviso, also thefamilies of persons killed, and the widows duringwidowhood and minor children during minority ofpersons who died, while in the serice of any such

common carrier. Any common carrier violatingthis provision shall be deemed guilty of a misde-meanor and for each offense, on conviction, shallpay to the United States a penalty of not less than$100 nor more than $2,000, and any person, otherthan the persons excepted in this provision, who usesany such interstate free ticket, free pass, or freetransportation shall be subject to a like penalty.Jurisdiction of offenses under this provision shall bethe same as that provided for offenses in sections41-43 of this title.

(8) Transportation of commodity manufactured orproduced by railroad forbidden.

It shall be unlawful for any railroad company totransport from any State, Territory, or the Districtof Columbia, to any other State, Territory, or theDistrict of Columbia, or to any foreign country, anyarticle or commodity, other than timber and themanufactured products thereof, manufactured,mined, or produced by it, or under its authority, orwhich it may own in whole or in part, or in whichit may have any interest, direct or indirect, exceptsuch articles or commodities as may be necessary andintended for its use in the conduct of its business asa common carrier.

(9) Switch connections and tracks.Any common carrier subject to the provisions of

this chapter, upon application of any lateral, branchline of railroad, or of any shipper tendering inter-state traffic for transportation, shall construct, main-tain, and operate upon reasonable terms a switchconnection with any such lateral, branch line of rail-road, or private side track which may be constructedto connect with its railroad, where such connection isreasonably practicable and can be put in with safetyand will furnish sufficient business to justify the con-struction and maintenance of the same; and shallfurnish cars for the movement of such traffic to thebest of its ability without discrimination in favor ofor against any such shipper. If any common carriershall fail to install and operate any such switch orconnection as aforesaid, on application therefor inwriting by any shipper or owner of such lateral,branch line railroad, such shipper or owner of suchlateral branch line of railroad, may make complaintto the commission, as provided in section 13 of thistitle, and the commission shall hear and investi-gate the same and shall determine as to the safetyand practicability thereof and justification and rea-sonable compensation therefor, and the commissionmay make an order, as provided in section 15 of thistitle, directing the common carrier to complywith the provisions of this section in accordance withsuch order, and such order shall be enforced as here-inafter provided for the enforcement of all otherorders by the commission, other than orders for thepayment of money.

(10) "Car service" defined.The term "car service" in this chapter shall include

the use, control, supply, movement, distribution, ex-change, interchange, and return of locomotives, cars,and other vehicles used in the transportation ofproperty, including special types of equipment, andthe supply of trains, by any carrier by railroad sub-ject to this chapter.

445

2, TITLE 49.-TR

(11 Duty to furnish-car service; rules and regula-tions.

It shall be the duty of every carrier by railroadsubject to this chapter to furnish safe and adequatecar service and to establish, observe, and enforce justand reasonable rules, regulations, and practices withrespect to car service; and every unjust and unrea-sonable rule, regulation, and practice with respectto car service is prohibited and declared to beumlawful.

(12) Distribution of coal cars; failure to prorate;penalty.

It shall also be the duty of every carrier by railroadto make just and reasonable distribution of cars fortransportation of coal among the coal mines servedby it, whether located upon its line or lines or cus-tomarily dependent upon it for car supply. Duringany period when the supply of cars available for suchservice does not equal the requirements of suchmines it shall be the duty of the carrier to maintainand apply just and reasonable ratings of such minesand to count each and every car furnished to or usedby any such mine for transportation of coal againstthe mine. Failure or refusal so to do shall be unlaw-ful, and in respect of each car not so counted shallbe deemed a separate offense, and the carrier, re-ceiver, or operating trustee so failing or refusingshall forfeit to the United States the sum of $100for each offense, which may be recovered in a civilaction brought by the United States.

(13) Rules and regulations as to car service to befiled, etc.

The commission is authorized by general or specialorders to require all carriers by railroad subject tothis chapter, or any of them, to file with it from timeto time their rules and regulations with respect tocar service, and the commission may, in its discre-tion, direct that such rules and regulations shall beincorporated in their schedules showing rates, fares,and charges for transportation, and be subject toany or all of the provisions of this chapter relatingthereto.

(14) Establishment by commission of rules, etc. asto car service.

(a) The Commission may, after hearing, on a com-plaint or upon its own initiative without complaint,establish reasonable rules, regulations, and practiceswith respect to car service by common carriers byrailroad subject to this chapter, including the com-pensation to be paid and other terms of any contract,agreement, or arrangement for the use of any loco-motive, car, or other vehicle not owned by the carrierusing It (and whether or not owned by another car-rier), and the penalties or other sanctions for non-observance of such rules, regulations, or practices.

(b) It shall be unlawful for any common carrierby railroad or express company, subject to thischapter, to make or enter into any contract, agree-ment, or arrangement with any person for the fur-nishing to or on behalf of such carrier or expresscompany of protective service against heat or cold toproperty transported or to be transported in inter-

state or foreign commerce, or for any such carrieror express company to continue after April 1, 1941,as a party to any such contract, agreement, or ar-

ANSPORTATION Page 5446

rangement unless and until such contract, agreement,or arrangement has been submitted to and approvedby the Commission as just, reasonable, and consistentwith the public interest: Provided, That if the Com-mission is unable to make its determination withrespect to any such contract, agreement, or arrange-ment prior to said date, it may extend it to not laterthan October 1, 1941.

(15) Powers of commission in case of emergency.Whenever the commission is of opinion that short-

age of equipment, congestion of traffic, or other emer-gency requiring immediate action exists in any sec-tion of the country, the commission shall have, andit is given, authority, either upon complaint or uponIts own initiative without complaint, at once, if it soorders, without answer or other formal pleading bythe interested carrier or carriers, and with or with-out notice, hearing, or the making or filing of a re-port, according as the commission may determine:(a) to suspend the operation of any or all rules,regulations, or practices then established with re-spect to car service for such time as may be deter-mined by the commission; (b) to make such just andreasonable directions with respect to car servicewithout regard to the ownership as between carriersof locomotives, cars, and other vehicles, during suchemergency as in its opinion will best promote theservice in the interest of the public and the com-merce of the people, upon such terms of compensationas between the carriers as they may agree upon, or,in the event of their disagreement, as the commissionmay after subsequent hearing find to be just andreasonable; (c) to require such joint or common useof terminals, including main-line track or tracks fora reasonable distance outside of such terminals, asin its opinion will best meet the emergency and servethe public interest, and upon such terms as betweenthe carriers as they may agree upon, or, in the eventof their disagreement, as the commission may aftersubsequent hearing find to be just and reasonable;and (d) to give directions for preference or priorityin transportation, embargoes, or movement of trafficunder permits, at such time and for such periods asit may determine, and to modify, change, suspend,or annul them. In time of war or threatened warthe President may certify to the commission that itis essential to the national defense and security that

-certain traffic shall have preference or priority intransportation, and the commission shall, under thepower herein conferred, direct that such preferenceor priority be afforded.

(16) Rerouting of traffic on failure of initial carrier toserve public.

Whenever the commission is of opinion that anycarrier by railroad subject to this chapter is forany reason unable to transport the traffic offeredit so as properly to serve the public, it may, upon thesame procedure as provided in paragraph (15), ofthis section, make such Just and reasonable direc-tions with respect to the handling, routing, andmovement of the traffic of such darrier and its dis-tribution over other lines of roads, as in the opinionof the commission will best promote the service inthe interest of the public and the commerce of thepeople, and upon such terms as between the carriers


as they may agree upon, or, in the event of their dis-agreement, as the commission may after subsequenthearing find to be just and reasonable.

(17) Directions of Commission as to car service; dis-obedience- rights of States; bribery.

(a) The directions of the commission as to carservice and to the matters referred to in paragraphs(15) and (16) of this section may be made throughand by such agents or agencies as the commissionshall designate and appoint for that purpose. Itshall be the duty of all carriers by railroad subjectto this chapter, and of their officers, agents, and em-ployees, to obey strictly and conform promptly tosuch orders or directions of the commission, and incase of failure or refusal on the part of any carrier,receiver, or operating trustee to comply with anysuch order or direction such carrier, receiver, ortrustee shall be liable to a penalty of not less than$100 no more than $500 for each such offense and$50 for each and every day of the continuance ofsuch offense, which shall accrue to the United Statesand may be recovered in a civil action brought bythe United States: Provided, however, That nothingin this chapter shall impair or affect the right of aState, in the exercise of its police power, to requirejust and reasonable freight and passenger service forintrastate business, except insofar as such require-ment is inconsistent with any lawful order of thecommission made under the provisions of thischapter.

(b) It shall be unlawful for any person to offeror give or cause or procure to be offered or given,directly or indirectly, any money, property, or thingof value, or bribe in any other form whatsoever, toany person acting for or employed by any carrierby railroad subject to this part with intent to influ-ence his decision or action, or because of his decisionor action, with respect to the supply, distribution, ormovement of cars or other vehicles, or vessels, usedIn the transportation of property. It shall be unlaw-ful for any person acting for or employed by anycarrier by railroad subject to this chapter to solicit,accept, or receive, directly or indirectly, any money,property, or thing of value, or bribe in any otherform whatsoever, with intent to be influenced there-by in his decision or action, or because of his decisionor action, with respect to the supply, distribution, ormovement of cars or other vehicles, or vessels, usedin the transportation of property. Any person whoviolates the provisions of this subparagraph shallbe deemed guilty of a misdemeanor and be subjectfor each offense to a fine of not more than $1,000,or imprisonment in the penitentiary for a term ofnot more than two years, or both such fine andimprisonment.

(18) Extension or abandonment of lines; certificaterequired; contracts for joint use of spurs,switches, etc.

No carrier by railroad subject to this chapter shallundertake the extension of its line of railroad, orthe construction of a new line of railroad, or shallacquire or operate any line of railroad, or extensionthereof, or shall engage in transportation under thischapter over or by means of such additional or ex-tended line of railroad, unless and until there shall

first have been obtained from the commission a cer-tificate that the present or future public convenienceand necessity require or will require the construction,or operation, or construction and operation, of suchadditional or extended line of railroad, and no car-rier by railroad subject to this chapter shall abandonall or any portion of a line of railroad, or the opera-tion thereof, unless and until there shall first havebeen obtained from the commission a certificate thatthe present or future public convenience and neces-sity permit of such abandonment. Nothing in thisparagraph or in section 5 of this title shall be con-sidered to prohibit the making of contracts betweencarriers by railroad subject to this chapter, withoutthe approval of the Commission, for the joint owner-ship or joint use of spur, industrial, team, switching,or side tracks.

(19) Application for certificate of commission; noticeand hearing.

The application for and issuance of any such cer-tificate shall be under such rules and regulations asto hearings and other matters as the commission mayfrom time to time prescribe, and the provisions ofthis chapter shall apply to all such proceedings.Upon receipt of any application for such certificatethe commission shall cause notice thereof to begiven to and a copy filed with the governor of eachState in which such additional or extended lineof railroad is proposed to be constructed or operated,or all or any portion of a line of railroad, or theoperation thereof, is proposed to be abandoned, withthe right to be heard as hereinafter provided withrespect to the hearing of complaints or the issuanceof securities; and said notice shall also be publishedfor three consecutive weeks in some newspaper ofgeneral circulation in each county in or throughwhich said line of railroad is constructed or operates.

(20) Issuance of certificate by commission; unlawfulextension or abandonment of lines.

The commission shall have power to issue suchcertificate as prayed for, or to refuse to issue it, orto issue it for a portion or portions of a line of rail-road, or extension thereof, described in the applica-tion, or for the partial exercise only of such right orprivilege, and may attach to the issuance of thecertificate such terms and conditions as in its judg-ment the public convenience and necessity may re-quire. From and after issuance of such certificate,and not before, the carrier by railroad may, with-out securing approval other than such certificate,comply with the terms and conditions contained inor attached to the issuance of such certificate andproceed with the construction, operation, or aban-donment covered thereby. Any construction, opera-tion, or abandonment contrary to the provisions ofthis paragraph or of paragraph (18) or (19) of thissection may be enjoined by any court of competentjurisdiction at the suit of the United States, the com-mission, any commission or regulating body of theState or States affected, or any party in interest;and any carrier which, or any director, officer, re-ceiver, operating trustee, lessee, agent, or person,acting for or employed by such carrier, who know-ingly authorizes, consents to, or permits any violationof the provisions of this paragraph or of paragraph

Page 5447


(18) of this section, shall upon conviction thereof bepunished by a fine of not more than $5,000 or by im-prisonment for not more than three years, or both.

(21) Power of commission to require adequate facili-ties or extension of line; penalty.

The commission may, after hearing, in a proceed-ing upon complaint or upon its own initiative withoutcomplaint, authorize or require by order any carrierby railroad subject to this chapter, party to suchproceeding, to provide itself with safe and adequatefacilities for performing as a common carrier its carservice as that term is used in this chapter, and toextend its line or lines: Provided, That no suchauthorization or order shall be made unless the com-mission finds, as to such extension, that it is reason-ably required in the interest of public convenienceand necessity, or as to such extension or facilitiesthat the expense involved therein will not impairthe ability of the carrier to perform its duty to thepublic. Any carrier subject to this chapter whichrefuses or neglects to comply with any order of thecommission made in pursuance of this paragraphshall be liable to a penalty of $100 for each dayduring which such refusal or neglect continues,which shall accrue to the United States and may berecovered in a civil action brought by the UnitedStates.

(22) Construction, etc, of spurs, switches, etc., withinState.

The authority of the commission conferred byparagraphs (18) to (21) of this section, both inclu-sive, shall not extend to the construction or aban-donment of spur, industrial, team, switching, or sidetracks, located or to be located wholly within oneState, or of street, suburban, or interurban electricrailways, which are not operated as a part or partsof a general steam railroad system of transportation.(Feb. 4, 1887, ch. 104, part I, § 1, 24 Stat. 379; June29, 1906, ch. 3591, § 1, 34 Stat. 584; Apr. 13, 1908, ch.143, 35 Stat. 60; June 18, 1910, ch. 309, § 7, 36 Stat.544; May 29, 1917, ch. 23, 40 Stat. 101; Feb. 28, 1920,ch. 91, §§ 400-403, 41 Stat. 474-479; June 19, 1934,ch. 652, § 602 (b), 48 Stat. 1102; Aug. 9, 1935, ch. 498,§ 1, 49 Stat. 543; Sept. 18, 1940, ch. 722, title I, §§ 2,3 (a) (b), 4, 54 Stat. 899-901.)

REFERENCES IN TEXT

The National Home for Disabled Volunteer Soldiers, towhich reference is made in this section, was abolished bysections ll-llf of Title 38, Pensions, Bonuses, and Vet-erans' Relief.

AMENIDMENTS

1940-Par. (3) amended by act Sept. 18, 1940, § 2 (a),(b), cited to text. Amendment designated former para-graph to be subpar. (a), added last sentence thereto, andadded subpar. (b).

Par. (4) amended by act Sept. 18, 1940, § 2 (c), citedto text.

Par. (5) amended by act Sept. 18, 1940, § 2 (d), cited totext. Amendment designated former paragraph to besubpar. (a), struck out the proviso thereto, and addedsubpar. (b).

Par. (7) amended by act Sept. 18, 1940, § 3 (a), (b),cited to text.

Par. (14) amended by act Sept. 18, 1940, § 4 (a), citedto text.

Par. (17) amended by act Sept. 18, 1940, § 4 (b), citedto text. Amendment designated former paragraph to besubpar. (a) and added subpar. (b).

Par. (18), last sentence, added by act Sept. 18, 1940,§ 4 (c), cited to text.

REPEALSThe provisions of this section, insofar as they related

to communication by wire or wireless, or to telegraph, tele-phone, or cable companies operating by wire or wireless,except the last proviso of (5) and the provisions of (7),were repealed by the Communications Act of June 19,1934, ch. 652, § 602 (b), 48 Stat. 1102, see chapter 5 ofTitle 47, Telegraphs, Telephones and Radiotelegraphs.

CRoss REFERENCEs

Natural Gas Act, see section 717 et seq. of Title 15,Commerce and Trade.

Rates on Government traffic, see section 66 of thistitle.

§ 2. Special rates and rebates prohibited.If any common carrier subject to the provisions of

this chapter shall, directly or indirectly, by any specialrate, rebate, drawback, or other device, charge, de-mand, collect, or receive from any person or personsa greater or less compensation for any service ren-dered or to be rendered, in the transportation ofpassengers or property, subject to the provisions ofthis chapter, than it charges, demands, collects, orreceives from any other person or persons for doingfor him or them a like and contemporaneous servicein the transportation of a like kind of traffic undersubstantially similar circumstances and conditions,such common carrier shall be deemed guilty of unjustdiscrimination, which is prohibited and declared tobe unlawful. (Feb. 4, 1887, ch. 104, part I, § 2, 24Stat. 379; Feb. 28, 1920, ch. 91, § 404, 41 Stat. 479;June 19, 1934, ch. 652, § 602 (b), 48 Stat. 1102; Aug.9, 1935, ch. 498, § 1, 49 Stat. 543.)

REPEALS

The provisions of this section, insofar as they related tocommunication by wire or wireless, or to telegraph, tele-phone, or cable companies operating by wire or wireless,were repealed by the Communications Act of June 19, 1934,ch. 652, § 602 (b), 48 Stat. 1102, see chapter 5 of Title 47,Telegraphs, Telephones, and Radiotelegraphs.

CRoss REFERENCEs

Reduced rates for National Guard Organizations travel.ing to and from joint encampments, with Regular Army,see section 73 of Title 32, National Guard.

§ 3. Preferences; interchange of traffic; terminalfacilities.-(1) Undue preferences or prejudicesprohibited.

It shall be unlawful for any common carrier subjectto the provisions of this chapter to make, give, orcause any undue or unreasonable preference or ad-vantage to any particular person, company, firm,corporation, association, locality, port, port district,gateway, transit point, region, district, territory, orany particular description of traffic, in any respectwhatsoever; or to subject any particular person,company, firm, corporation, association, locality,port, port district, gateway, transit point, region, dis-trict, territory, or any particular description oftraffic to any undue or unreasonable prejudice or dis-advantage in any respect whatsoever: Provided, how-ever, That this paragraph shall not be construed toapply to discrimination, prejudice, or disadvantageto the traffic of any other carrier of whatever descrip-tion.

Page 5448


(la) Export rates on farm commodities; Commission'spower to carry out policy.

It is declared to be the policy of Congress thatshippers of wheat, cotton, and all other farm com-modities for export shall be granted export rateson the same principles as are applicable in the caseof rates on industrial products for export. The Com-mission is directed, on its own initiative or an ap-plication by interested persons, to make such inves-tigations and conduct such hearings, and, after ap-propriate proceedings, to issue such orders, as maybe necessary to carry out such policy.

(2) Payment of freight as prerequisite to delivery.No carrier by railroad subject to the provisions of

this chapter shall deliver or relinquish possession atdestination of any freight transported by it until alltariff rates and charges thereon have been paid, ex-cept under such rules and regulations as the com-mission may from time to time prescribe to governthe settlement of all such rates and charges and toprevent unjust discrimination: Provided, That theprovisions of this paragraph shall not be construedto prohibit any carrier from extending credit inconnection with rates and charges on freight trans-ported for the United States, for any department,bureau, or agency thereof, or for any State or Terri-tory or political subdivision thereof, or for the Dis-trict of Columbia. Where carriers by railroad areinstructed by a shipper or consignor to deliver prop-erty trans orted by such carriers to a consignee otherthan the shipper or consignor, such consignee shallnot be legally liable for transportation charges in re-

spect of the transportation of such property (beyondthose billed against him at the time of delivery forwhich he is otherwise liable) which may be foundto be due after the property has been delivered tohim, if the consignee (a) is an agent only and has nobeneficial title in the property, and (b) prior to de-livery of the property has notified the delivering car-rier in writing of the fact of such agency and absenceof beneficial title, and, in the case of a shipment re-consigned or diverted to a point other than thatspecified in the original bill of lading, has also noti-fied the delivering carrier in writing of the name andaddress of the beneficial owner of the property. Insuch cases the shipper or consignor, or, in the caseof a shipment so reconsigned or diverted, the bene-ficial owner, shall be liable for such additionalcharges, irrespective of any provisions to the con-trary in the bill of lading or in the contract underwhich the shipment was made. An action for theenforcement of such liability may be begun withinthe period provided in paragraph (3) of section 16of this title or before the expiration of six monthsafter final judgment against the carrier in an actionagainst the consignee begun within the period pro-vided in paragraph (3) of section 16 of this title.If the consignee has given to the carrier erroneousinformation as to who the beneficial owner is, suchconsignee shall himself be liable for such additional

charges, notwithstanding the foregoing provisions of

this paragraph. An action for the enforcement ofsuch liability may be begun within the period pro-vided in paragraph (3) of section 16 of this title orbefore the expiration of six months after final judg-

94506°-48---vol. 4- 50

ment against the carrier in an action against thebeneficial owner named by the consignee begunwithin the period provided in paragraph (3) of sec-tion 16 of this title. On shipments reconsigned ordiverted by an agent who has furnished the carrierin the reconsignment or diversion order with anotice of agency and the proper name and addressof the beneficial owner, and where such shipmentsare refused or abandoned at ultimate destination,the said beneficial owner shall be liable for all legallyapplicable charges in connection therewith. If thereconsignor or diverter has given to the carrier er-roneous information as to who the beneficial owneris, such reconsignor or diverter shall himself beliable for all such charges, and an action for theenforcement of his liability may be begun withinthe same period provided in the case of an actionagainst a consignee who has given erroneous infor-mation as to the beneficial owner.

(3) Liability of shipper-consignee for freight wheredelivery is made to another party upon instruc-tion.

If a shipper or consignor of a shipment of property(other than a prepaid shipment) is also the consigneenamed in the bill of lading and, prior to the timeof delivery, notifies, in writing, a delivering carrierby railroad or a delivering express company subjectto the provisions of this chapter, (a) to deliver suchproperty at destination to another party, (b) thatsuch party is the beneficial owner of such property,and (c) that delivery is to be made to such partyonly upon payment of all transportation charges inrespect of the transportation of such property, anddelivery is made by the carrier to such party withoutsuch payment, such shipper or consignor shall notbe liable (as shipper, consignor, consignee, or other-wise) for such transportation charges but the partyto whom delivery is so made shall in any event beliable for transportation charges billed against theproperty at the time of such delivery, and also for anyadditional charges which may be found to be dueafter delivery of the property, except that if suchparty prior to such delivery has notified in writingthe delivering carrier that he is not the beneficialowner of the property, and has given in writing tosuch delivering carrier the name and address of suchbeneficial owner, such party shall not be liable forany additional charges which may be found to be dueafter delivery of the property; but if the party towhom delivery is made has given to the carrier erro-neous information as to the beneficial owner, suchparty shall nevertheless be liable for such additionalcharges. If the shipper or consignor has given to thedelivering carrier erroneous information as to who thebeneficial owner is, such shipper or consignor shallhimself be liable for such transportation charges,notwithstanding the foregoing provisions of this

paragraph and irrespective of any provisions to thecontrary in the bill of lading or in the contract oftransportation under which the shipment was made.

An action for the enforcement of such liability either

against the party to whom delivery is made or theshipper or consignor may be begun within the period

provided in paragraph (3) of section 16 of this title,

or before the expiration of six months after final

Page 5449


judgment against the carrier in an action againsteither of such parties begun within the limitationperiod provided in paragraph (3) of section 16 ofthis title. The term "delivering carrier" means theline-haul carrier making ultimate delivery.

(4) Interchange of traffic.All carriers subject to the provisions of this chap-

ter shall, according to their respective powers, affordall reasonable, proper, and equal facilities for theinterchange of traffic between their respective linesand connecting lines, and for the receiving, forward-ing, and delivering of passengers or property to andfrom connecting lines; and shall not discriminatein their rates, fares, and charges between connectinglines, or unduly prejudice any connecting line in thedistribution of traffic that is not specifically routedby the shipper. As used in this paragraph the term"connecting line" means the connecting line of anycarrier subject to the provisions of this chapter orany common carrier by water subject to chapter 12of this title.

(5) Terminal facilities; use of and compensation for.If the commission finds it to be in the public in-

terest and to be practicable, without substantially im-pairing the ability of a common carrier by railroadowning or entitled to the enjoyment of terminal fa-cilities to handle its own business, it shall have powerby order to require the use of any such terminalfacilities, including main-line track or tracks for areasonable distance outside of such terminal, of anycommon carrier by railroad, by another such carrieror other such carriers, on such terms and for suchcompensation as the carriers affected may agreeupon, or, in the event of a failure to agree, as thecommission may fix as just and reasonable for theuse so required, to be ascertained on the principlecontrolling compensation in condemnation proceed-ings. Such compensation shall be paid or adequatelysecured before the enjoyment of the use may be com-menced. If under this paragraph the use of suchterminal facilities of any carrier is required to begiven to another carrier or other carriers, and thecarrier whose terminal facilities are required to be soused is not satisfied with the terms fixed for such use,or if the amount of compensation so fixed is not dulyand promptly paid, the carrier whose terminal facili-ties have thus been required to be given to anothercarrier or other carriers shall be entitled to recover,by suit or action against such other carrier or car-riers, proper damages for any injuries sustained by itas the result of compliance with such requirement, orjust compensation for such use, or both, as the casemay be. (Feb. 4, 1887, ch. 104, part I, § 3, 24 Stat.380; Feb. 28, 1920, ch. 91, § 405, 41 Stat. 479; Mar. 4,1927, ch. 510, § 1, 44 Stat. 1447; Aug. 9, 1935, ch. 498,§ 1, 49 Stat. 543; Aug. 12, 1935, ch. 509, 49 Stat. 607;Sept. 18, 1940, ch. 722, title I, § 5, 54 Stat. 902.)

AMENDMENTS

1940-Par. (1) amended by act Sept. 18, 1940, § 5 (a),cited to text, which amended par. (1) "to read as fol-lows", and set out both par. (1) and par. (la).

Par. (la) added by act Sept. 18, 1940, § 5 (a), cited totext. Said act amended par. (1) "to read as follows",and set out both par. (1) and par. (la).

Par. (2) amended by act Sept. 18, 1940, § 5 (c), cited totext.

Par. (3) added by act Sept. 18, 1940, § 5 (d), cited totext. Former par. (3) was redesignated "(4)" andamended by section 5 (e) of said act Sept. 18, 1940.

Par. (4), formerly par. (3), redesignated "(4)" andamended by act Sept. 18, 1940, § 5 (e), cited to text.Former par. (4) was redesignated "(5)" and amended bysection 5 (f) of said act Sept. 18, 1940.

Par. (5), formerly par. (4), redesignated "(5)" andamended by act Sept. 18, 1940, § 5 (f), cited to text.

INVESTIGATION BY COMMISSION OF RATES ON MANUFACTURED

AND AGRICULTURAL PRODUCTS AND RAW MATERIALS

Section 5 (b) of act Sept. 18, 1940, cited to text, pro-vided:

"(b) The Interstate Commerce Commission Is author-ized and directed to institute an investigation into therates on manufactured products, agricultural commodities,and raw materials, between points in one classificationterritory and points in another such territory, and intolike rates within any of such territories, maintained bycommon carriers by rail or water subject to part I of theInterstate Commerce Act, as amended (this chapter), forthe purpose of determining whether said rates are unjustand unreasonable or unlawful in any other respect In andof themselves or in their relation to each other, and toenter such orders as may be appropriate for the removalof any unlawfulness which may be found to exist: Pro-vided, That the Commission in its discretion may confineits investigation to such manufactured products, agri-cultural commodities, and raw materials, and the ratesthereon as shippers thereof may specifically request beincluded in such Investigation."

§ 4. Long and short haul charges; competition withwater routes-(l) Charges for long and shorthauls and on through route.

It shall be unlawful for any common carrier sub-ject to this chapter or chapter 12 of tfis title tocharge or receive any greater compensation in theaggregate for the transportation of passengers, orof like kind of property, for a shorter than for alonger distance over the same line or route in thesame direction, the shorter being included withinthe longer distance, or to charge any greater com-pensation as a through rate than the aggregate ofthe intermediate rates subject to the provisions ofthis chapter or chapter 12 of this title, but this shallnot be construed as authorizing any common carrierwithin the terms of this chapter or chapter 12 ofthis title to charge or receive as great compensationfor a shorter as for a longer distance: Provided,That upon application to the Commission such com-mon carrier may in special cases, after investigation,be authorized by the Commission to charge less forlonger than for shorter distances for the transpor-tation of passengers or property; and the Commis-sion may from time to time prescribe the extent towhich such designated common carrier may be re-lieved from the operation of this section, but inexercising the authority conferred upon it in thisproviso the Commission shall not permit the estab-lishment of any charge to or from the more distantpoint that is not reasonably compensatory for theservice performed; and no such authorization shallbe granted on account of merely potential watercompetition not actually in existence: And providedfurther, That tariffs proposing rates subject to theprovisions of this paragraph may be filed when ap-plication is made to the Commission under the pro-visions hereof, and in the event such application isapproved, the Commission shall permit such tariffsto become effective upon one day's notice.

Page 5450


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

Wherever a carrier by railroad shall in competitionwith a water route or routes reduce the rates on thecarriage of any species of freight to or from competi-tive points, it shall not be permitted to Increase suchrates unless after hearing by the commission it shallbe found that such proposed increase rests uponchanged conditions other than the elimination ofwater competition. (Feb. 4, 1887, ch. 104, Part I,§ 4, 24 Stat. 380; June 18, 1910, ch. 309, § 8, 36 Stat.547; Feb. 28, 1920, ch. 91, § 406, 41 Stat. 480; Aug. 9,1935, ch. 498, § 1, 49 Stat. 543; Sept. 18, 1940, ch. 722,title I, § 6 (a), 54 Stat. 904.)

AMENDMENTS

1940--Par. (1) amended generally by act Sept. 18, 1940,cited to text.

EXISTING RATES, ETc., As AFFEcTED By AcT SEPT. 18, 1940Section 6 (b) of act Sept. 18, 1940, cited to text, pro-

vided:"(b) In the case of a carrier heretofore subject to the

provisions of paragraph (1) of section 4 of the InterstateCommerce Act, as amended (this section), no rate, fare,or charge lawfully in effect at the time of the enactmentof this act shall be required to be changed by reason ofthe amendments made to such paragraph by subsection(a) of this section. In the case of a carrier not hereto-fore subject to the provisions of such paragraph, no rate,fare, or charge lawfully in effect at the time of the enact-ment of this act shall be required to be changed, byreason of the provisions of such paragraph, as amendedby subsection (a) of this section, prior to six monthsafter the enactment of this act, or in case application forthe continuance of any such existing rate, fare, or chargeis filed with the Interstate Commerce Commission withinsuch six months period, until the Commission has actedupon such application."

§ 5. Combinations and consolidations of carriers-(1)

Pooling; division of traffic, service, or earnings.

Except upon specific approval by order of theCommission as in this section provided, and exceptas provided in paragraph (16) of section 1 of thistitle, it shall be unlawful for any common car-rier subject to this chapter, chapter 8, or chapter 12of this title to enter into any contract, agreement, orcombination with any other such common carrier orcarriers for the pooling or division of traffic, or ofservice, or of gross or net earnings, or of any portionthereof; and in any case of an unlawful agreementfor the pooling or division of traffic, service, or earn-ings as aforesaid each day of its continuance shallbe a separate offense: Provided, That whenever theCommission is of opinion, after hearing upon appli-cation of any such carrier or carriers or upon its owninitiative, that the pooling or division, to the extentindicated by the Commission, of their traffic, service,or gross or net earnings, or of any portion thereof,will be in the interest of better service to the publicor of economy in operation, and will not unduly re-strain competition, the Commission shall by orderapprove and authorize, if assented to by all the car-riers involved, such pooling or division, under suchrules and regulations, and for such consideration asbetween such carriers and upon such terms and con-ditions, as shall be found by the Commission to bejust and reasonable in the premises: Provided further,That any contract, agreement, or combination towhich any common carrier by water subject to chap-

ter 12 of this title is a party, relating to the poolingor division of traffic, service, or earnings, or any por-tion thereof, lawfully existing on September 18, 1940,if filed with the Commission within six months aftersuch date, shall continue to be lawful except to theextent that the Commission, after hearing uponapplication or upon its own initiative, may find andby order declare that such contract, agreement, orcombination is not in the interest of better serviceto the public or of economy in operation, or that itwill unduly restrain competition.

(2) Unifications, mergers, and acquisitions of control.(a) It shall be lawful, with the approval and au-

thorization of the Commission, as provided in sub-division (b) of this section-

(I) for two or more carriers to consolidate ormerge their properties or franchises, or any partthereof, into one corporation for the ownership, man-agement, and operation of the properties thereto-fore in separate ownership; or for any carrier, or twoor more carriers jointly, to purchase, lease, or con-tract to operate the properties, or any part thereof,of another; or for any carrier, or two or more car-riers jointly, to acquire control of another throughownership of its stock or otherwise; or for a personwhich is not a carrier to acquire control of two ormore carriers through ownership of their stock orotherwise; or for a person which is not a carrier andwhich has control of one or more carriers to acquirecontrol of another carrier through ownership of itsstock or otherwise; or

(ii) for a carrier by railroad to acquire trackagerights over, or joint ownership in or joint use of,any railroad line or lines owned or operated by anyother such carrier, and terminals incidental thereto.

(b) Whenever a transaction is proposed undersubparagraph (a) of this paragraph, the carrier orcarriers or person seeking authority therefor shallpresent an application to the Commission, andthereupon the Commission shall notify the Gov-ernor of each State in which any part of the prop-erties of the carriers involved in the proposed trans-action is situated, and also such carriers and theapplicant or applicants (and, in case carriers bymotor vehicle are involved, the persons specified insection 305 (e) of this title), and shall afford reason-able opportunity for interested parties to be heard.If the Commission shall consider it necessary inorder to determine whether the findings specifiedbelow may properly be made, it shall set said appli-cation for public hearing, and a public hearingshall be held in all cases where carriers by railroadare Involved. If the Commission finds that, subjectto such terms and conditions and such modificationsas it shall find to be just and reasonable, the pro-posed transaction Is within the scope of subpara-graph (a) of this paragraph and will be consistentwith the public interest, it shall enter an order ap-proving and authorizing such transaction, upon theterms and conditions, and with the modifications, sofound to be just and reasonable: Provided, That ifa carrier by railroad subject to this chapter, or anyperson which Is controlled by such a carrier, or affili-ated therewith within the meaning of paragraph(6) of this section, is an applicant in the case of any

'LPage 5451


such proposed transaction involving a motor carrier,the Comnission shall not enter such an order unlessit finds that the transaction proposed will be con-sistent with the public interest and will enable suchcarrier to use service by motor vehicle to publicadvantage in its operations and will not unduly re-strain competition.

(c) In passing upon any proposed transactionunder the provisions of this paragraph, the Com-mission shall give weight to the following considera-tions, among others: (1) The effect of the proposedtransaction upon adequate transportation serviceto the public; (2) the effect upon the public interestof the inclusion, or failure to include, other railroadsin the territory involved in the proposed transaction;(3) the total fixed charges resulting from the pro-posed transaction; and (4) the interest of the car-rier employees affected.

(d) The Commission shall have authority in thecase of a proposed transaction under this paragraphinvolving a railroad or railroads, as a prerequisiteto its approval of the proposed transaction, torequire, upon equitable terms, the inclusion ofanother railroad or other railroads in the territoryinvolved, upon petition by such railroad or railroadsrequesting such inclusion, and upon a finding thatsuch inclusion is consistent with the public interest.

(e) No transaction which contemplates a guar-anty or assumption of payment of dividends or offixed charges, shall be approved by the Commissionunder this paragraph except upon a specific find-ing by the Commission that such guaranty or as-sumption is not inconsistent with the public inter-est. No transaction shall be approved under thisparagraph which will result in an increase of totalfixed charges, except upon a specific finding by theCommission that such increase would not be con-trary to public interest.

(f) As a condition of its approval, under thisparagraph, of any transaction involving a carrieror carriers by railroad subject to the provisions ofthis chapter, the Commission shall require a fairand equitable arrangement to protect the interestsof the railroad employees affected. In its order ofapproval the Commission shall include terms andconditions providing that during the period of fouryears from the effective date of such order suchtransaction will not result in employees of the car-rier or carriers by railroad affected by such orderbeing in a worse position with respect to their em-ployment, except that the protection afforded toany employee pursuant to this sentence shall notbe required to continue for a longer period, followingthe effective date of such order, than the periodduring which such employee was in the employ ofsuch carrier or carriers prior to the effective dateof such order. Notwithstanding any other pro-visions of this chapter and chapters 8 and 12 of thistitle, an agreement pertaining to the protection ofthe interests of said employees may hereafter beentered into by any carrier or carriers by railroadand the duly authorized representative or repre-sentatives of its or their employees.

(3) Noncarrier deemed carrier upon acquiring control.Whenever a person which is not a carrier is

authorized, by an order entered under paragraph(2) of this section, to acquire control of any carrieror of two or more carriers, such person thereaftershall, to the extent provided by the Commission insuch order, be considered as a carrier subject tosuch of the following provisions as are applicable toany carrier involved in such acquisition of control:Sections 20 (1)-(10), 304 (a) (1) and (2), 320 and913 of this title, (which relate to reports, accounts,and so forth, of carriers), and sections 20a (2)-(11),and 314 of this title, (which relate to issues of se-curities and assumptions of liability of carriers), in-cluding in each case the penalties applicable in thecase of violations of such provisions. In the appli-cation of such provisions of sections 20a and 314of this title, in the case of any such person, theCommission shall authorize the issue or assumptionapplied for only if it finds that such issue or as-sumption is consistent with the proper perform-ance of its service to the public by each carrierwhich is under the control of such person, that itwill not impair the ability of any such carrier toperform such service, and that it is otherwise con-sistent with the public interest.

(4) Control effected by other than prescribed methods.It shall be unlawful for any person, except as pro-

vided in paragraph (2) of this section, to enterinto any transaction within the scope of subpara-graph (a) of paragraph (2) of this section, or toaccomplish or effectuate, or to participate in ac-complishing or effectuating, the control or man-agement in a common interest of any two or morecarriers, however such result is attained, whetherdirectly or indirectly, by use of common directors,officers, or stockholders, a holding or investmentcompany or companies, a voting trust or trusts, orin any other manner whatsoever. It shall be unlaw-ful to continue to maintain control or managementaccomplished or effectuated after the enactment ofthis amendatory paragraph' and in violation of itsprovisions. As used in this paragraph and para-graph (5) of this section, the words "control ormanagement" shall be construed to include thepower to exercise control or management.

(5) Transactions deemed to effectuate control ormanagement.

For the purposes of this section, but not in any-wise limiting the application of the provisionsthereof, any transaction shall be deemed to ac-complish or effectuate the control or managementin a common interest of two carriers-

(a) if such transaction is by a carrier, and if theeffect of such transaction is to place such carrierand persons affiliated with it, taken together, incontrol of another carrier;

(b) if such transaction is by a person affiliatedwith a carrier, and if the effect of such transactionis to place such carrier and persons affiliated withit, taken together, in control of another carrier;

I Paragraph (4), formerly (6), was added by act June16, 1933, cited to text, and amended by act Sept. 18, 1940,also cited.

Page 5452


(c) if such transaction Is by two or more personsacting together, one of whom is a carrier or is affil-iated with a carrier, and if the effect of such trans-action is to place such persons and carriers and per-sons affiliated with any one of them and per-sons affiliated with any such affiliated carrier, takentogether, in control of another carrier.

(6) Affiliation with a carrier defined.For the purposes of this section a person shall be

held to be affiliated with a carrier if, by reason ofthe relationship of such person to such carrier(whether by reason of the method of, or circum-stances surrounding organization or operation, orwhether established through common directors, of-ficers, or stockholders, a voting trust or trusts, a.holding or investment company or companies, orany other direct or indirect means), it is reasonableto believe that the affairs of any carrier of whichcontrol may be acquired by such person will be man-aged in the interest of such other carrier.

(7) Investigation by Commission of effectuation ofcontrol by nonprescribed methods.

The Commission is authorized, upon 6omplaint orupon its own initiative without complaint, but afternotice and hearing, to investigate and determinewhether any person is violating the provisions ofparagraph (4) of this section. If the Commissionfinds after such investigation that such person isviolating the provisions of such paragraph, it shallby order require such person to take such action asmay be necessary, in the opinion of the Commission,to prevent continuance of such violation. The pro-visions of this paragraph shall be in addition to, andnot in substitution for, any other enforcement pro-visions contained in this chapter; and with respect toany violation of paragraphs (2)-(12) of this sec-tion, any penalty provision applying to such a vio-lation by a common carrier subject to this chaptershall apply to such a violation by any other person.

(8) Jurisdiction of injunctions, etc., against viola-tions of section or orders.

The district courts of the United States shall haveJurisdiction upon the complaint of the Commission,alleging a violation of any of the provisions of thissection or disobedience of any order issued by theCommission thereunder by any person, to issue suchwrits of injunction or other proper process, manda-tory or otherwise, as may be necessary to restrainsuch person from violation of such provision or tocompel obedience to such order.

(9) Supplemental orders by Commission.The Commission may from time to time, for good

cause shown, make such orders, supplemental toany order made under paragraph (1), (2), or (7)of this section, as it may deem necessary or appro-priate.

(10) Unifications, consolidations, etc., of motor car-riers only.

Nothing in this section shall be construed to re-quire the approval or authorizaticn of the Com-mission in the case of a transaction within the scopeof paragraph (2) of this section where the onlyparties to the transaction are motor carriers subjectto chapter 8 of this title (but not including a motor

carrier controlled by or affiliated with a carrier asdefined In section 1 (3) of this title), and wherethe aggregate number of motor vehicles owned,leased, controlled, or operated by such parties, forpurposes of transportation subject to chapter 8 ofthis title, does not exceed twenty.

(11) Plenary nature of authority under section.The authority conferred by this section shall be

exclusive and plenary, and any carrier or corporationparticipating in or resulting from any transactionapproved by the Commission thereunder, shall havefull power (with the assent, in the case of a purchaseand sale, a lease, a corporate consolidation, or acorporate merger, of a majority, unless a differentvote is required under applicable State law, in whichcase the number so required shall assent, of thevotes of the holders of the shares entitled to vote ofthe capital stock of such corporation at a regularmeeting of such stockholders, the notice of suchmeeting to include such purpose, or at a specialmeeting thereof called for such purpose) to carrysuch transaction into effect and to own and operateany properties and exercise any control or franchisesacquired through said transaction without invokingany approval under State authority; and any car-riers or other corporations, and their officers andemployees and any other persons, participating in atransaction apprcved or authorized under the pro-visions of this section shall be and they are re-lieved from the operation of the antitrust laws andof all other restraints, limitations, and prohibitionsof law, Federal, State, or municipal, insofar as maybe necessary to enable them to carry into effect thetransaction so approved or provided for in accord-ance with the terms and conditions, if any, imposedby the Commission, and to hold, maintain, and op-erate any properties and exercise any control orfranchises acquired through such transaction. Noth-ing in this section shall be construed to create orprovide for the creation, directly or indirectly, ofa Federal corporation, but any power granted by thissection to any carrier or other corporation shall bedeemed to be in addition to and in modification ofits powers under its corporate charter or under thelaws of any State.

(12) Separability clause.If any provision of the foregoing paragraphs of this

section, or the application thereof to any person orcircumstances, is held invalid, the other provisionsof such paragraphs, and the application of such pro-vision to any other person or circumstances, shall notbe affected thereby.

(13) Carrier defined.As used in paragraphs (2)-(12) of this section, the

term "carrier" means a carrier by railroad and anexpress company, subject to this part; a motor car-rier subject to chapter 8 of this title; and a watercarrier subject to chapter 12 of this title.

(14) Interest in competing water carrier; prohibitionof.

Notwithstanding the provisions of paragraph (2)of this section, from and after the 1st day of July1914, it shall be unlawful for any carrier, as definedin section 1 (3) of this title, or (after September

Page 5453


18, 1940) any person controlling, controlled by, orunder common control with, such a carrier to own,lease, operate, control, or have any interest what--soever (by stock ownership or otherwise, either di-rectly, indirectly, through any holding company, orby stockholders or directors in common, or in anyother manner) in any common carrier by water op-erated through the Panama Canal or elsewhere withwhich such carrier aforesaid does or may competefor traffic or any vessel carrying freight or passen-gers upon said water route or elsewhere with whichsaid railroad or other carrier aforesaid does or maycompete for traffic; and in case of the violation ofthis provision each day in which such violation con-tinues shall be deemed a separate offense.

(15) Same; determination of fact of competition.Jurisdiction is conferred on the Commission to

determine questions of fact, arising under paragraph(14) of this section, as to the competition or possi-bility of competition, after full hearing, on the appli-cation of any railroad company or other carrier.Such application may be filed for the purpose of de-termining whether any existing service is in viola-tion of such paragraph and may pray for an orderpermitting the continuance of any vessel or vesselsalready in operation, or may pray for an order underthe provisions of paragraph (16) of this section.The Commission may on its own motion or the ap-plication of any shipper institute proceedings to in-quire into the operation of any vessel in use by anyrailroad or other carrier which has not applied tothe Commission and had the question of competi-tion or the possibility of competition determined asherein provided. In all such cases the order of saidCommission shall be final.

(16) Same; permission of interest in competing watercarrier.

Notwithstanding the provisions of paragraph (14)of this section, the Commission shall have author-ity, upon application of any carrier, as defined insection 1 (3) of this title, and after hearing, by orderto authorize such carrier to own or acquire owner-ship of, to lease or operate, to have or acquire controlof, or to have or acquire an interest in, a commoncarrier by water or vessel, not operated through thePanama Canal, with which the applicant does ormay compete for traffic, if the Commission shallfind that the continuance or acquisition of such own-ership, lease, operation, control, or interest will notprevent such common carrier by water or vessel frombeing operated in the interest of the public and withadvantage to the convenience and commerce of thepeople, and that it will not exclude, prevent, or re-duce competition on the route by water under con-sideration: Provided, That if the transaction or in-terest sought to be entered into, continued, or ac-quired is within the scope of paragraph (2) (a) ofthis section, the provisions of paragraph (2) ofthis section shall be applicable thereto in addi-tion to the provisions of this paragraph: And pro-vided further, That no such authorization shall benecessary if the carrier having the ownership, lease,operation, control, or interest has, prior to Septem-ber 18, 1940, obtained an order of extension underthe provisions of paragraph (21) of this section, as

In effect prior to such date, and such order is stillin effect. (Feb. 4, 1887, ch. 104, Part I, § 5, 24 Stat.380; Aug. 24, 1912, ch. 390, § 11, 37 Stat. 566; Feb. 28,1920, ch. 91, §§ 407, 408, 41 Stat. 480, 482; June 10,1921, ch. 20, 42 Stat. 27; June 16, 1933, ch. 91, titleII, §§ 201-203, 48 Stat. 217-220; June 19, 1934, ch.652, § 221, 48 Stat. 1080; Aug. 9, 1935, ch. 498, § 1,49 Stat. 543; Sept. 18, 1940, ch. 722, title I, § 7, 54Stat. 905.)

REFERENCEs IN TEXT

Words "September 18, 1940" in pars. (1), (14), and (16)appeared in act Sept. 18, 1940, cited to text, as "the datethis paragraph as amended takes effect", "the date of theenactment of this amendatory section", and "the datethis section as amended becomes effective", respectively.

CODIFICATION

Former par. (18), relating to acquisition or consolida-tion of telephone companies, is now covered by section221 of Title 47, Telegraphs, Telephones, and Radio-Tele-graphs. It was formerly par. (9) of this section and wasrenumbered (18) by act June 16, 1933, § 203, cited totext.

AMENDMENTS

1940-Section was amended in its entirety to read as itis now set out by act Sept. 18, 1940, cited to text.

Caoss REFERENcEsConsolidations under Railroad Reorganization Act of

1933, see section 205 of Title 11, Bankruptcy.

§ 5a. Combinations and consolidations existing priorto June 16, 1933.

The provisions of chapter 1 of this title and of allother applicable Federal statutes, as in force priorto June 16, 1933, shall remain in force, as thoughsections 5, 15a, 15b, and 19a of this title had notbeen enacted, with respect to the acquisition by anycarrier, prior to June 16, 1933, of the control of anyother carrier or carriers. (June 16, 1933, ch. 91,

title II, § 204, 48 Stat. 220.)

§ 6. Schedules and statements of rates, etc., joint railand water transportation-() Schedule of rates,fares, and charges; filing and posting.

Every common carrier subject to the provisions ofthis chapter shall file with the commission createdby this chapter and print and keep open to publicinspection schedules showing all the rates, fares, andcharges for transportation between different pointson its own route and between points on its own routeand points on the route of any other carrier by rail-road, by pipe line, or by water when a through routeand joint rate have been established. If no jointrate over the through route has been established, theseveral carriers in such through route shall file,print, and keep open to public inspection, as afore-said, the separately established rates, fares, andcharges applied to the through transportation.The schedules printed as aforesaid by any such com-mon carrier shall plainly state the places betweenwhich property and passengers will be carried, andshall contain the classification of freight in force,and shall also state separately all terminal charges,storage charges, icing charges, and all other chargeswhich the commission may require, all privileges orfacilities granted or allowed, and any rules or regu-lations which in any wise change, affect, or deter-mine any part or the aggregate of such aforesaidrates, fares, and charges,'or the value of the servicerendered to the passenger, shipper, or consignee.

Page 5454


Such schedules shall be plainly printed in large type,and copies for the use of the public shall be keptposted in two public and conspicuous places in everydepot, station, or office of such carrier where passen-gers or freight, respectively, are received for trans-portation, in such form that they shall be accessibleto the public and can be conveniently inspected.The provisions of this section shall apply to alltraffic, transportation, and faciiities defined in thischapter.

(2) Schedule of rates through foreign country.Any common carrier subject to the provisions of

this chapter receiving freight in the United States tobe carried through a foreign country to any place inthe United States shall also in like manner printand keep open to public inspection, at every depot oroffice where such freight is received for shipment,schedules showing the through rates established andcharged by such common carrier to all points in theUnited States beyond the foreign country to which itaccepts freight for shipment; and any freight shippedfrom the United States through a foreign countryinto the United States the through rate on whichshall not have been made public, as required by thischapter, shall, before it is admitted into the UnitedStates from said foreign country, be subject to cus-toms duties as if said freight were of foreignproduction.

(3) Change in rates, fares, etc.; notice required; sim-plification of schedules.

No change shall be made in the rates, fares, and

charges or joint rates, fares, and charges which havebeen filed and polished by any common carrier incompliance with the requirements of this section, ex-cept after thirty days' notice to the commission and to

the public published as aforesaid, which shall plainlystate the changes proposed to be made in the schedulethen in force and the time when the changed rates,fares, or charges will go into effect; and the proposedchanges shall be shown by printing new schedules, orshall be plainly indicated upon the schedules in forceat the time and kept open to public inspection: Pro-

vided, That the commission may, in its discretion andfor good cause shown, allow changes upon less thanthe notice herein specified, or modify the require-ments of this section in respect to publishing, posting,and filing of tariffs, either in particular instances orby a general order applicable to special or peculiarcircumstances or conditions: Provided further, Thatthe commission is authorized to make suitable rulesand regulations for the simplification of schedules ofrates, fares, charges, and classifications and to permitin such rules and regulations the filing of an amend-ment of or change in any rate, fare, charge, or classi-fication without filing complete schedules coveringrates, fares, charges, or classifications not changedif, in its judgment, not inconsistent with the publicinterest.

(4) Joint tariffs.The names of the several carriers which are parties

to any joint tariff shall be specified therein, and eachof the parties thereto, other than the one filing thesame, shall file with the commission such evidenceof concurrence therein or acceptance thereof as may

be required or approved by the commission, andwhere such evidence of concurrence or acceptanceis filed it shall not be necessary for the carriers filingthe same to also file copies of the tariffs in which theyare named as parties.

(5) Copies of traffic contracts to be filed.Every common carrier subject to this chapter shall

also file with said commission copies of all contracts,agreements, or arrangements with other commoncarriers in relation to any traffic affected by the pro-visions of this chapter to which it may be a party.

(6) Form and manner of publishing, filing, and postingschedules; unlawful use.

The schedules required by this section to be filedshall be published, filed, and posted in such formand manner as the Commission by regulation shallprescribe; and the Commission is authorized to rejectany schedule filed with it which is not in accordancewith this section and with such regulations. Anyschedule so rejected by the Commission shall be voidand its use shall be unlawful.

(7) Transportation without filing and publishing ratesforbidden; rebates; privileges.

No carrier, unless otherwise provided by this chap-ter, shall engage or participate in the transportationof passengers or property, as defined in this chapter,unless the rates, fares, and charges upon which thesame are transported by said carrier have been filedand published in accordance with the provisions ofthis chapter; nor shall any carrier charge or demandor collect or receive a greater or less or differentcompensation for such transportation of passengersor property, or for any service in connection there-with, between the points named in such tariffs thanthe rates, fares, and charges which are specified inthe tariff fied and in effect at the time; nor shallany carrier refund or remit in any manner or byany device any portion of the rates, fares, andcharges so specified, nor extend to any shipper orperson any privileges or facilities in the transporta-tion of passengers or property, except such as arespecified 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 ofthe United States, be given, over all other traffic, forthe transportation of troops and material of war,and carriers shall adopt every means within theircontrol to facilitate and expedite the military traffic.And in time of peace shipments consigned to agentsof the United States for its use shall be delivered bythe carriers as promptly as possible and without re-gard to any embargo that may have been declared,and no such embargo shall apply to shipments soconsigned.

(9) Schedule lacking notice of effective date.The commission may reject and refuse to file any

schedule that is tendered for filing which does notprovide and give lawful notice of its effective date,and any schedule so rejected by the commission shallbe void and its use shall be unlawful.

(10) Penalty for failure to comply with regulations.In case of failure or refusal on the part of any

carrier, receiver, or trustee to comply with the terms

Page 5455


of any regulation adopted and promulgated or anyorder made by the commission under the provisionsof this section, such carrier, receiver, or trustee shallbe liable to a penalty of $500 for each such offense,and $25 for each and every day of the continuanceof such offense, which shall accrue to the UnitedStates and may be recovered in a civil action broughtby the United States.

(11) Jurisdiction of Commission over transportationby rail and water.

When property may be or is transported frompoint to point in the United States by rail and waterthrough the Panama Canal or otherwise, the trans-portation being by a common carrier or carriers,and not entirely within the limits of a single State,the Interstate Commerce Commission shall havejurisdiction of such transportation and of the car-riers, both by rail and by water, which may or doengage in the same, in the following particulars, inaddition to the jurisdiction otherwise given by thischapter:

(a) To establish physical connection between thelines of the rail carrier and the dock at which inter-change of passenger or property is to be made bydirecting the rail carrier to make suitable connec-tion between its line and a track or tracks whichhave been constructed from the dock to the limits ofthe railroad right-of-way, or by directing either orboth the rail and water carrier, individually or inconnection with one another to construct and con-nect with the lines of the rail carrier a track ortracks to the dock. The commission shall have fullauthority to determine and prescribe the terms andconditions upon which these connecting tracks shallbe operated, and it may, either in the constructionor the operation of such tracks, determine what sumshall be paid to or by either carrier: Provided, Thatconstruction required by the commission under theprovisions of this paragraph shall be subject to thesame restrictions as to findings of public convenienceand necessity and other matters as is constructionrequired under section 1 of this title.

(b) To establish proportional rates or maximum,or minimum, or maximum and minimum propor-tional rates, by rail to and from the ports to whichthe traffic is brought, or from which it is taken bythe water carrier, and to determine to what trafficand in connection with what vessels and upon whatterms and conditions such rates shall apply. Byproportional rates are meant those which differ fromthe corresponding local rates to and from the portand which apply only to traffic which has beenbrought to the port or is carried from the port bya common carrier by water.

(12) Jurisdiction of Commission over carriers con-tracting with water carriers operating to foreignposts.

If any common carrier subject to this chapterand chapters 8 and 12 of this title enters into ar-rangements with any water carrier operating froma port in the United States to a foreign country,through the Panama Canal or otherwise, for thehandling of through business between interior pointsof the United States and such foreign country, theCommission may by order require such common car-

rier to enter into similar arrangements with anyor all other lines of steamships operating from saidport to the same foreign country. (Feb. 4, 1887,ch. 104, part I, § 6, 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, § 11, 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, § 8, 54Stat. 910.)

REPEALS

Former paragraphs 11 and 12 of this section wererepealed by act Sept. 18, 1940, cited to text. By the sameact former paragraph 13 was renumbered 11 and a newparagraph 12 added.

CROSS REFERENCES

Inclusion of statement of through service and jointrates under Civil Aeronautics Act of 1938, see section643 (b) of this title.

Reduced rates to be given National Guard organizationstraveling to and from joint encampments with RegularArmy, see section 73 of Title 32, National Guard.

§ 7. Combinations to prevent continuous carriage offreight prohibited.

It shall be unlawful for any common carrier sub-ject to the provisions of this chapter to enter intoany combination, contract, or agreement, expressedor implied, to prevent, by change of time schedule,carriage in different cars, or by other means or de-vices, the carriage of freights from being continuousfrom the place of shipment to the place of destina-tion; and no break of bulk, stoppage, or interrup-tion made by such common carrier shall prevent thecarriage of freights from being anti being treated asone continuous carriage from the place of shipmentto the place of destination, unless such break, stop-page, or interruption was made in good faith forsome necessary purpose, and without any intent toavoid or unnecessarily interrupt such continuouscarriage or to evade any of the provisions of thischapter. (Feb. 4, 1887, ch. 104, part I, § 7, 24 Stat.382; Aug. 9, 1935, ch. 498, § 1, 49 Stat. 543.)

§ 8. Liability in damages to persons injured by viola-

tion of law.

In case any common carrier subject to the pro-visions of this chapter shall do, cause to be done,or permit to be done any act, matter, or thing inthis chapter prohibited or declared to be unlawful,or shall omit to do any act, matter, or thing in thischapter required to be done, such common carriershall be liable to the person or persons injured there-by for the full amount of damages sustained inconsequence of any such violation of the provisionsof this chapter, together with a reasonable counselor attorney's fee, to be fixed by the court in everycase of recovery, which attorney's fee shall be taxedand collected as part of the costs in the case. (Feb.4, 1887, ch. 104, part I, § 8, 24 Stat. 382; Aug. 9,1935, ch. 498, § 1, 49 Stat. 543.)

§ 9. Remedies of persons damaged; election; wit-

nesses.

Any person or persons claiming to be damaged byany common carrier subject to the provisions of thischapter may either make complaint to the commis-

Page 5456


sion as hereinafter provided for, or may bring suitin his or their own behalf for the recovery of thedamages for which such common carrier may beliable under the provisions of this chapter in anydistrict court of the United States of competent juris-diction; but such person or persons shall not havethe right to pursue both of said remedies, and must ineach case elect which one of the two methods of pro-cedure herein provided for he or they will adopt.In any such action brought for the recovery of dam-ages the court before which the same shall be pendingmay compel any director, officer, receiver, trustee, oragent of the corporation or company defendant insuch suit to attend, appear, and testify in such case,and may compel the production of the books andpapers of such corporation or company party to anysuch suit; the claim that any such testimony or evi-dence may tend to criminate the person giving suchevidence shall not excuse such witness from testify-ing, but such evidence or testimony shall not be usedagainst such person on the trial of any criminal pro-ceeding. (Feb. 4, 1887, ch. 104, part I, § 9, 24 Stat.382; Mar. 3, 1911, ch. 231, § 291, 36 Stat. 1167; Aug.9, 1935, ch. 498, § 1, 49 Stat. 543.)

§ 10. Violation of regulations by carrier; discrimina-tion; penalties-() Violation by carrier or offi-cer; penalty.

Any common carrier subject to the provisions ofthis chapter, or, whenever such common carrier is acorporation, any director or officer thereof, or anyreceiver, trustee, lessee, agent, or person acting for oremployed by such corporation, who, alone or withany other corporation, company, person, or party,shall willfully do or cause to be done, or shall willinglysuffer or permit to be done, any act, matter, or thingin this chapter prohibited or declared to be unlawful,or who shall aid or abet therein, or shall willfullyomit or fail to do any act, matter, or thing in thischapter required to be done, or shall cause or willinglysuffer or permit any act, matter, or thing so directedor required by this chapter to be done not to be sodone, or shall aid or abet any such omission or failure,or shall be guilty of any infraction of this chapterfor which no penalty is otherwise provided, or whoshall aid or abet therein, shall be deemed guilty of amisdemeanor, and shall, upon conviction thereof inany district court of the United States within thejurisdiction of which such offense was committed, besubject to a fine of not to exceed $5,000 for eachoffense: Provided, That if the offense for which anyperson shall be convicted as aforesaid shall be anunlawful discrimination in rates, fares, or charges forthe transportation of passengers or property or thetransmission of intelligence, such person shall, inaddition to the fine hereinbefore provided for, beliable to imprisonment in the penitentiary for a termof not exceeding two years, or both such fine andimprisonment, in the discretion of the court.

(2) False billing or classification by carrier; penalty.Any common carrier subject to the provisions of

this chapter, or, whenever such common carrier isa corporation, any officer or agent thereof, or anyperson acting for or employed by such corporation,who, by means of false billing, false classification,false weighing, or false report of weight, or by any

other device or means, shall knowingly and willfullyassist, or shall willingly suffer or permit, any per-son or persons to obtain transportation for propertyat less than the regular rates then established and inforce on the line of transportation of such commoncarrier, shall be deemed guilty of a misdemeanor,and shall, upon conviction thereof in any court ofthe United States of competent jurisdiction withinthe district in which such offense was committed, besubject to a fine of not exceeding $5,000, or impris-onment in the penitentiary for a term of not exceed-ing two years, or both, in the discretion of the court,for each offense.

(3) Obtaining lower rates by false billing, etc., or byfalse claim; penalty.

Any person, corporation, or company, or anyagent or officer thereof, who shall deliver propertyfor transportation to any common carrier subjectto the provisions of this chapter, or for whom, asconsignor or consignee, any such carrier shall trans-port property, who shall knowingly and willfully, di-rectly, or indirectly, himself or by employee, agent,officer, or otherwise, by false billing, false classifica-tion, false weighing, false representation of the con-tents of the package or the substance of the prop-erty, false report of weight, false statement, or byany other device or means, whether with or withoutthe consent or connivance of the carrier, its agent,or officer, obtain or attempt to obtain transportationfor such property at less than the regular rates thenestablished and in force on the line of transporta-tion; or who shall knowingly and willfully, directlyor indirectly, himself or by employee, agent, officer,or otherwise, by false statement or representation asto cost, value, nature, or extent of injury, or by theuse of any false bill, bill of lading, receipt, voucher,roll, account, claim, certificate, affidavit, or deposi-tion, knowing the same to be false, fictitious, orfraudulent, or to contain any false, fictitious, orfraudulent statement or entry, obtain or attempt toobtain any allowance, refund, or payment for damage,r otherwise in connection with or growing out ofthe transportation of or agreement to transport suchproperty, whether with or without the consent orconnivance of the carrier, whereby the compensationof such carrier for such transportation, either beforeor after payment; shall in fact be made less than theregular rates then established and in force on the lineof transportation, shall be deemed guilty of fraud,which is declared to be a misdemeanor, and shall,upon conviction thereof in any court of the UnitedStates of competent jurisdiction within the district inwhich such offense was wholly or in part committed,be subject for each offense to a fine of not exceeding$5,000 or imprisonment in the penitentiary for a termof not exceeding two years, or both, in the discretionof the court: Provided, That the penalty of imprison-ment shall not apply to artificial persons.

(4) Inducing unjust discrimination; penalty; liabilityfor damages.

If any such person, or any officer or agent of anysuch corporation or company, shall, by payment ofmoney or other thing of value, solicitation, or other-wise, induce or attempt to induce any common car-rier subject to the provisions of this chapter, or any

Page 5457


of its officers or agents, to discriminate unjustly inhis, its, or their favor as against any other consignoror consignee in the transportation of property, orshall aid or abet any common carrier in any suchunjust discrimination, such person or such officer oragent of such corporation or company shall bedeemed guilty of a misdemeanor, and shall, upon con-viction thereof in any court of the United States ofcompetent jurisdiction within the district in whichsuch offense was committed, be subject to a fine ofnot exceeding $5,000, or imprisonment in the peniten-tiary for a term of not exceeding two years, or both,in the discretion of the court, for each offense; andsuch person, corporation, or company shall also, to-gether with said common carrier, be liable, jointly orseverally, in an action to be brought by any consignoror consignee discriminated against in any court ofthe United States of competent jurisdiction for alldamages caused by or resulting therefrom. (Feb. 4,1887, ch. 104, part I, § 10, 24 Stat. 382; Mar. 2, 1889,ch. 382, § 2, 25 Stat. 857; June 18, 1910, ch. 309, § 10,36 Stat. 549; Feb. 28, 1920, ch. 91, § 414, 41 Stat. 483;Aug. 9, 1935, ch. 498, § 1, 49 Stat. 543.)

CROSS REFERENCES

Offense punishable by Imprisonment for term in excessof one year deemed a felony, see section 541 of Title 18,Criminal Code and Criminal Procedure.

§ 11. Interstate Commerce Commission; appointment,term, and qualifications of commissioners.

A commission is created and established to beknown as the Interstate Commerce Commission,which shall be composed of eleven commissioners,who shall be appointed by the President, by and withthe advice and consent of the Senate. The commis-sioners appointed under this chapter and their suc-cessors, shall continue in office for terms of sevenyears, except that any person chosen to fill a vacancyshall be appointed only for the unexpired term of thecommissioner whom he shall succeed. Of the com-missioners in office on January 1, 1926, the term ofone shall expire December 31 in each of the years1926, 1927, and 1932 and the terms of two shall ex-pire December 31, in each of the years 1928, 1929,1930, and 1931. Any commissioner may be removedby the President for inefficiency, neglect of duty, ormalfeasance in office. Not more than six of the com-missioners shall be appointed from the same politicalparty. No person in the employ of or holding anyofficial relation to any common carrier subject to theprovisions of this chapter, or owning stock or bondsthereof, or who is in any manner pecuniarily inter-ested therein, shall enter upon the duties of or holdsuch office. Said commissioners shall not engage inany other business, vocation, or employment. Novacancy in the commission shall impair the right ofthe remaining commissioners to exercise all the pow-ers of the commission. Upon the expiration of histerm of office a Commissioner shall continue to serveuntil his successor is appointed and shall have quali-fied. (Feb. 4, 1887, ch. 104, part I, §§ 11, 24, 24 Stat.383, 387; June 29, 1906, ch. 3591, § 8, 34 Stat. 595;Aug. 9. 1917, ch. 50, § 1, 40 Stat. 270; Feb. 28, 1920,ch. 91, § 440, 41 Stat. 497; July 16, 1935, ch. 383, 49Stat. 481; Aug. 9, 1935, ch. 498, § 1, 49 Stat. 543.)

CROSS REENCESJoint board under Civil Aeronautics Act of 1938, see

sections 305 and 643 of this title.

§ 12. Authority and duties of commission; witnesses;depositions-(1) Authority, duties, and proceed-ings of commission, witnesses.

The Commission shall have authority, in order toperform the duties and carry out the objects forwhich it was created, to inquire into and report onthe management of the business of all common car-riers subject to the provisions of this chapter, and toinquire into and report on the management of thebusiness of persons controlling, controlled by, orunder a common control with, such carriers, to theextent that the business of such persons is related tothe management of the business of one or more suchcarriers, and the Commission shall keep itself in-formed as to the manner and method in which thesame are conducted. The Commission may obtainfrom such carriers and persons such information asthe Commission deems necessary to carry out theprovisions of this chapter; and may transmit to Con-gress from time to time such recommendations (in-cluding recommendations as to additional legisla-tion) as the Commission may deem necessary. TheCommission is authorized and required to executeand enforce the provisions of this chapter; and,upon the request of the commission, it shall bethe duty of any district attorney of the United Statesto whom the commission may apply to institute in theproper court and to prosecute under the direction ofthe Attorney General of the United States all neces-sary proceedings for the enforcement of the provi-sions of this chapter and for the punishment of allviolations thereof, and the costs and expenses of suchprosecution shall be paid out of the appropriation forthe expenses of the courts of the United States; andfor the purposes of this chapter the commission shallhave power to require, by subpoena, the attendanceand testimony of witnesses and the production of allbooks, papers, tariffs, contracts, agreements, and doc-uments relating to any matter under investigation.

(2) Attendance of witnesses and production of docu-ments.

Such attendance of witnesses, and the productionof such documentary evidence, may be required fromany place in the United States, at any designatedplace of hearing. And in case of disobedience to asubpoena the commission, or any party to a pro-ceeding before the commission, may invoke the aidof any court of the United States in requiring theattendance and testimony of witnesses and the pro-duction of books, papers, and documents under theprovisions of this section.

(3) Compelling attendance and testimony of witnesses,etc.

And any of the district courts of the UnitedStates within the jurisdiction of which such inquiryis carried on may, in case of contumacy or refusalto obey a subpoena issued to any common carriersubject to the provisions of this chapter, or otherperson, issue an order requiring such common car-rier or other person to appear before said commis-sion (and produce books and papers if so ordered)and give evidence touching the matter in question;

Page 5458


and any failure to obey such order of the court maybe punished by such court as a contempt thereof.

(4) Depositions.The testimony of any witness may be taken, at the

instance of a party, in any proceeding or investiga-tion depending 1 before the commission, by deposi-tion, at any time after a cause or proceeding is atissue on petition and answer. The commission mayalso order testimony to be taken by deposition in anyproceeding or Investigation pending before it, atany stage of such proceeding or investigation.Such depositions may be taken before any judge ofany court of the United States, or any United Statescommissioner, or any clerk of a district court, or anychancellor, justice, or judge of a supreme or superiorcourt, mayor or chief magistrate of a city, judge ofa county court, or court of common pleas of any ofthe United States, or any notary public, not beingof counsel or attorney to either of the parties, norinterested in the event of the proceeding or investi-gation. Reasonable notice must first be given inwriting by the party or his attorney proposing totake such deposition to the opposite party or his at-torney of record, as either may be nearest, whichnotice shall state the name of the witness and thetime and place of the taking of his deposition. Anyperson may be compelled to appear and depose, andto produce documentary evidence, in the same man-ner as witnesses may be compelled to appear andtestify and produce documentary evidence beforethe commission as hereinbefore provided.

(5) Oath; subscription of testimony on deposition.Every person deposing as herein provided shall be

cautioned and sworn (or affirm, if he so request)to testify the whole truth, and shall be carefullyexamined. His testimony shall be reduced to writ-ing by the magistrate taking the deposition, or underhis direction, and shall, after it has been reduced towriting, be subscribed by the deponent.

(6) Deposition in foreign country; filing of deposi-tions.

If a witness whose testimony may be desired tobe taken by deposition be in a foreign country, thedeposition may be taken before an officer or persondesignated by the commission, or agreed upon bythe parties by stipulation in writing to be filed withthe commission. All depositions must be promptlyfiled with the commission.

(7) Fees for depositions.Witnesses whose depositions are taken pursuant

to this chapter, and the magistrate or other officertaking the same, shall severally be entitled to thesame fees as are paid for like services in the courtsof the United States. (Feb. 4, 1887, ch. 104, part I,§ 12, 24 Stat. 383; Mar. 2, 1889, ch. 382, § 3, 25 Stat.858; Feb. 10, 1891, ch. 128, 26 Stat. 743; May 28, 1896,ch. 252, § 19, 29 Stat. 184; Mar. 3, 1911, ch. 231, § 291,36 Stat. 1167; Feb. 28, 1920, ch. 91, § 415, 41 Stat.484; Aug. 9, 1935, ch. 498, § 1, 49 Stat. 543; Sept. 18,1940, ch. 722, title I, § 9 (a), 54 Stat. 910.)

1 So in original.

CROSS REFERENCES

Authority and duties of Commission under RailroadReorganization Act of 1933, see section 205 of Title 11,Bankruptcy.

FEDERAL RULES OF CIVIL PROCEDURESubpoena, see Rule 45, following section 723c of Title 28.

Judicial Code and Judiciary.

§ 13. Complaints to and investigations by Commis-sion-(l) Complaint to Commission of violationof law by carrier; reparation; investigation.

Any person, firm. corporation, company, or asso-ciation, or any mercantile, agricultural, or manufac-turing society or other organization, or any bodypolitic or municipal organization, or any commoncarrier complaining of anything done or omitted tobe done by any common carrier subject to the provi-sions of this chapter in contravention of the pro-visions thereof, may apply to said commission bypetition, which shall briefly state the facts; where-upon a statement of the complaint thus made shall beforwarded by the commission to such common car-rier, who shall be called upon to satisfy the complaint,or to answer the same in writing, within a reasonabletime, to be specified by the commission. If such com-mon carrier within the time specified shall makereparation for the injury alleged to have been done,the common carrier shall be relieved of liability tothe complainant only for the particular violationof law thus complained of. If such carrier or car-riers shall not satisfy the complaint within the timespecified, or there shall appear to be any reasonableground for investigating said complaint, it shall bethe duty of the commission to investigate the mat-ters complained of in such manner and by such meansas it shall deem proper.

(2) Complaints by State commissions; inquiry onCommission's own motion; expenses of Statecommissions.

Said commission shall, in like manner and withthe same authority and powers, investigate any com-plaint forwarded by the railroad commissioner orrailroad commission of any State or Territory atthe request of such commissioner or commission,and the Interstate Commerce Commission shall havefull authority and power at any time to institute aninquiry, on its own motion, in any case and as toany matter or thing concerning which a complaintis authorized to be made, to or before said commissionby any provision of this chapter, or concerning whichany question may arise under any of the provisionsof this chapter, or relating to the enforcement ofany of the provisions of this chapter. And the saidcommission shall have the same powers and author-ity to proceed with any inquiry instituted on its mo-tion as though it had been appealed to by com-plaint or petition under any of the provisions of thischapter, including the power to make and enforceany order or orders in the case, or relating to thematter or thing concerning which the inquiry is hadexcepting orders for the payment of money. Nocomplaint shall at any time be dismissed because ofthe absence of direct damage to the complainant.Representatives of State commissions sitting with theCommission, under the provisions of this section,in cases pending before the Commission, shall re-

Page 5459

TITLE 49.MTRANSPORTATION

ceive such allowances for travel and subsistence ex-pense as the Commission shall provide.

(3) Investigation involving State regulations; confer-ence of State and interstate commissions.

Whenever in any investigation under the provisionsof this chapter, or in any investigation institutedupon petition of the carrier concerned, which petitionis authorized to be filed, there shall be brought inissue any rate, fare, charge, classification, regula-tion, or practice, made or imposed by authority ofany State, the commission, before proceeding to hearand dispose of such issue, shall cause the State orStates interested to be notified of the proceeding.The commission may confer with the authorities ofany State having regulatory jurisdiction over theclass of persons and corporations subject to thischapter or chapter 12 of this title with respect tothe relationship between rate structures and prac-tices of carriers subject to the jurisdiction of suchState bodies and of the commission; and to thatend is authorized and empowered, under rules to beprescribed by it, and which may be modified fromtime to time, to hold joint hearings with any suchState regulating bodies on any matters wherein thecommission is empowered to act and where the rate-making authority of a State is or may be affected bythe action taken by the commission. The commis-sion is also authorized to avail itself of the coopera-tion, services, records, and facilities of such Stateauthorities in the enforcement of any provision ofthis chapter or chapter 12 of this title.

(4) Duty of Commission where State regulations re-sult in discrimination.

Whenever in any such investigation the commis-sion, after full hearing, finds that any such rate,fare, charge, classification, regulation, or practicecauses any undue or unreasonable advantage, pref-erence, or prejudice as between persons or localitiesin intrastate commerce on the one hand and inter-state or foreign commerce on the other hand, orany undue, unreasonable, or unjust discriminationagainst interstate or foreign commerce, which ishereby forbidden and declared to be unlawful, itshall prescribe the rate, fare, or charge, or the maxi-mum or minimum, or maximum and minimum,thereafter to be charged, and the classification, reg-ulation, or practice thereafter to be observed, insuch manner as, in its judgment, will remove suchadvantage, preference, prejudice, or discrimination.Such rates, fares, charges, classifications, regula-tions, and practices shall be observed while in effectby the carriers parties to such proceeding affectedthereby, the law of any State or the decision or orderof any State authority to the contrary notwithstand-ing. (Feb. 4, 1887, ch. 104, part I, § 13, 24 Stat. 383;June 18, 1910, ch. 309, § 11, 36 Stat. 550; Feb. 28,1920, ch. 91, § 416, 41 Stat. 484; Aug. 9, 1935, ch. 498,§ 1, 49 Stat. 543; Sept. 18, 1940, ch. 722, title I, § 9(b, c), 54 Stat. 910.)§ 14. Reports and decisions of Commission-(1) Re-

ports of investigations by Commission.

Whenever an investigation shall be made by saidcommission, it shall be its duty to make a reportin writing in respect thereto, which shall state the

conclusions of the commission, together with itsdecision, order, or requirement in the premises; andin case damages are awarded, such report shall in-clude the findings of fact on which the award ismade.

(2) Record of reports; copies.All reports of investigations made by the com-

mission shall be entered of record, and a copy there-

of shall be furnished to the party who may havecomplained, and to any common carrier that mayhave been complained of.

(3) Publication of reports and decisions; printing anddistribution of annual reports.

The commission may provide for the publicationof its reports and decisions in such form and man-ner as may be best adapted for public informationand use, and such authorized publications shall becompetent evidence of the reports and decisions ofthe commission therein contained in all courts ofthe United States and of the several States withoutany further proof or authentication thereof. Thecommission may also cause to be printed for earlydistribution its annual reports. (Feb. 4, 1887, ch.104, part I, § 14, 24 Stat. 384; Mar. 2, 1889, ch. 382,§ 4, 25 Stat. 859; June 29, 1906, ch. 3591, § 3, 34 Stat.589; Feb. 28, 1920, ch. 91, § 417, 41 Stat. 484.)

CROSS REFERENCES

Motor Carrier Act, application of this section to, seesection 304 (d) of this title.

FEDERAL RULES OF CIVIL PROCEDURE

Effect of Rule 44 on this section, see note by AdvisoryCommittee under said Rule 44.

Proof of official records, see Rule 44, following section723c of Title 28, Judicial Code and Judiciary.

§ 15. Determination of rates, routes, etc.; routing oftraffic; disclosures, etc.-(1) Commission empow-ered to determine and prescribe rates, classifica-tions, etc.

Whenever, after full hearing, upon a complaintmade as provided in section 13 of this title, or afterfull hearing under an order for investigation andhearing made by the commission on its owninitiative, either in extension of any pending com-plaint or without any complaint whatever, the com-mission shall be of opinion that any individual orjoint rate, fare, or charge whatsoever demanded,charged, or collected by any common carrier or car-riers subject to this chapter for the transportationof persons or property, as defined in the first sectionof this chapter, or that any individual or joint classi-fication, regulation, or practice whatsoever of suchcarrier or carriers subject to the provisions of thischapter, is or will be unjust or unreasonable or un-justly discriminatory or unduly preferential orprejudicial, or otherwise in violation of any of theprovisions of this chapter, the commission is author-ized and empowered to determine and prescribewhat will be the just and reasonable individual orjoint rate, fare, or charge, or rates, fares, or charges,to be thereafter observed in such case, or the maxi-

mum or minimum, or maximum and minimum, to

be charged, and what individual or joint classifica-

tion, regulation, or practice is or will be just, fair,and reasonable, to be thereafter followed, and to

make an order that the carrier or carriers shall cease

§ 14 Page 5460


and desist from such violation to the extent to whichthe commission finds that the same does or willexist, and shall not thereafter publish, demand, orcollect any rate, fare, or charge for such transporta-tion other than the rate, fare, or charge so pre-scribed, or in excess of the maximum or less thanthe minimum so prescribed, as the case may be, andshall adopt the classification and shall conform toand observe the regulation or practice so prescribed.

(2) Orders of Commission.Except as otherwise provided in this chapter, all

orders of the commission, other than orders for thepayment of money, shall take effect within suchreasonable time, not less than thirty days, and shallcontinue in force until its further order, or for aspecified period of time, according as shall be pre-scribed in the order, unless the same shall be sus-pended or modified or set aside by the commission, orbe suspended or set aside by a court of competentjurisdiction.

(3) Establishment of through routes, joint classifica-tions, joint rates, fares, etc.

The Commission may, and it shall wheneverdeemed by it to be necessary or desirable in the publicinterest, after full hearing upon complaint or uponits own initiative without complaint, establishthrough routes, joint classifications, and joint rates,fares, or charges, applicable to the transportationof passengers or property by carriers subject to thischapter, or by carriers by railroad subject to thischapter and common carriers by water subject tochapter 12 of this title, or the maxima or minima, ormaxima and minima, to be charged, and the divi-sions of such rates, fares, or charges as hereinafterprovided, and the terms and conditions under whichsuch through routes shall be operated. The Commis-sion shall not, however, establish any through route,classification, or practice, or any rate, fare, or charge,between street electric passenger railways not en-gaged in the general business of transporting freightin addition to their passenger and express business,and railroads of a different character. If any tariffor schedule canceling any through route or joint rate,fare, charge, or Classification, without the consentof all carriers parties thereto or authorization by theCommission, is suspended by the Commission for in-vestigation, the burden of proof shall be upon thecarrier or carriers proposing such cancelation to showthat it is consistent with the public interest, withoutregard to the provisions of paragraph (4) of thissection.

(4) Through routes to embrace entire length of rail-road; temporary through routes.

In establishing any such through route the Com-mission shall not (except as provided in section 3of this title, and except where one of the carriers isa water line) require any carrier by railroad, withoutits consent, to embrace in such route substantiallyless than the entire length of its railroad and of anyintermediate railroad operated in conjunction andunder a common management or control therewith,which lies between the termini of such proposedthrough route, (a) unless such inclusion of lineswould make the through route unreasonably long ascompared with another practicable through route

which could otherwise be established, or (b) unlessthe Commission finds that the through route pro-posed to be established is needed in order to provideadequate, and more efficient or more economic, trans-portation: Provided, however, That in prescribingthrough routes the Commission shall, so far as isconsistent with the public interest, and subject tothe foregoing limitations in clauses (a) and (b) ofthis paragraph, give reasonable preference to thecarrier by railroad which originates the traffic. Nothrough route and joint rates applicable theretoshall be established by the Commission for the pur-pose of assisting any carrier that would participatetherein to meet its financial needs. In time of short-age of equipment, congestion of traffic, or otheremergency declared by the Commission, it may(either upon complaint or upon its own initiativewithout complaint, at once, if it so orders, withoutanswer or other formal pleadings by the interestedcarrier or carriers, and with or without notice, hear-ing, or the making or filing of a report, according asthe Commission may determine) establish tempor-arily such through routes as in its opinion are neces-sary or desirable in the public interest.

(5) Transportation of livestock in carload lots; serv-ices included.

Transportation wholly by railroad of ordinary live-stock in carload lots destined to or received at publicstockyards shall include all necessary service of un-loading and reloading en route, delivery at publicstockyards of inbound shipments into suitable pens,and receipt and loading at such yards of outboundshipments, without extra charge therefor to theshipper, consignee, or owner, except in cases wherethe unloading or reloading en route is at the requestof the shipper, consignee, or owner, or to try anintermediate market, or to comply with quarantineregulations. The commission may prescribe or ap-prove just and reasonable rules governing each ofsuch excepted services. Nothing in this paragraphshall be construed to affect the duties and liabilitiesof the carriers existing on February 28, 1920, byvirtue of law respecting the transportation of otherthan ordinary livestock, or the duty of performingservice as to shipments other than those to or frompublic stockyards.

(6) Commission to establish just divisions of jointrates, fares, or charges; adjustments.

Whenever, after full hearing upon complaint orupon its own initiative, the commission is of opinionthat the divisions of joint rates, fares, or charges,applicable to the transportation of passengers orproperty, are or will be unjust, unreasonable, in-equitable, or unduly preferential or prejudicial asbetween the carriers parties thereto (whether agreedupon by such carriers, or any of them, or otherwiseestablished), the commission shall by order prescribethe just, reasonable, and equitable divisions thereofto be received by the several carriers, and in caseswhere the joint rate, fare, or charge was establishedpursuant to a finding or order of the commissionand the divisions thereof are found by it to havebeen unjust, unreasonable, or inequitable, or undulypreferential or prejudicial, the commission may alsoby order determine what (for the period subsequent

Page 5461


to the filing of the complaint or petition or the mak-ing of the order of investigation) would have beenthe just, reasonable and equitable divisions thereofto be received by the several carriers, and requireadjustment to be made in accordance therewith. Inso prescribing and determining the divisions of jointrates, fares, and charges, the commission shall givedue consideration, among other things, to the effi-ciency with which the carriers concerned are oper-ated, the amount of revenue required to pay theirrespective operating expenses, taxes, and a fair re-turn on their railway property held for and usedin the service of transportation, and the importanceto the public of the transportation services of suchcarriers; and also whether any particular partici-pating carrier is an originating, intermediate, ordelivering line, and any other fact or circumstancewhich would ordinarily, without regard to the mile-age haul, entitle one carrier to a greater or lessproportion than another carrier of the joint rate,fare, or charge.

(7) Commission to determine lawfulness of newrates; suspension; refunds.

Whenever there shall be filed with the commissionany schedule stating a new individual or joint rate,fare, or charge, or any new individual or joint clas-sification, or any new individual or joint regulationor practice affecting ar~y rate, fare, or charge, thecommission shall have, and it is given, authority,either upon complaint or upon its own initiativewithout complaint, at once, and if it so orders with-out answer or other formal pleading by the in-terested carrier or carriers, but upon reasonablenotice, to enter upon a hearing concerning the law-fulness of such rate, fare, charge, classification,regulation, or practice; and pending such hearingand the decision thereon the commission, upon filingwith such schedule and delivering to the carrier orcarriers affected thereby a statement in writingof its reasons for such suspension, may from timeto time suspend the operation of such scheduleand defer the use of such rate, fare, charge, classi-fication, regulation, or practice, but not for a longerperiod than seven months beyond the time whenit would otherwise go into effect; and after full hear-ing, whether completed before or after the rate,fare, charge, classification, regulation, or practicegoes into effect, the commission may make such orderwith reference thereto as would be proper in a pro-ceeding initiated after it had become effective. Ifthe proceeding has not been concluded and an ordermade within the period of suspension, the proposedchange of rate, fare, charge, classification, regula-tion, or practice shall go into effect at the end ofsuch period; but in case of a proposed increasedrate or charge for or in respect to the transportationof property, the commission may by order requirethe interested carrier or carriers to keep accurateaccount in detail of all amounts received by reasonof such increase, specifying by whom and in whosebehalf such amounts are paid, and upon completionof the hearing and decision may by further orderrequire the interested carrier or carriers to refund,with interest, to the persons in whose behalf suchamounts were paid, such portion of such increased

rates or charges as by its decision shall be foundnot justified. At any hearing involving a changein a rate, fare, charge, or classification, or in a rule,regulation, or practice, after September 18, 1940,the burden of proof shall be upon the carrier to showthat the proposed changed rate, fare, charge, classi-fication, rule, regulation, or practice is just and rea-sonable, and the Commission shall give to the hear-ing and decision of such questions preference overall other questions pending before it and decide thesame as speedily as possible.

(8) Shipper's choice of route to be observed.In all cases where at the time of delivery of prop-

erty to any railroad corporation being a commoncarrier for transportation subject to the provisionsof this chapter to any point of destination, betweenwhich and the point of such delivery for shipmenttwo or more through routes and through rates shallhave been established as in this chapter providedto which through routes and through rates suchcarrier is a party, the person, firm, or corporationmaking such shipment, subject to such reasonableexceptions and regulations as the Interstate Com-merce Commission shall from time to time prescribe,shall have the right to designate in writing by whichof such through routes such property shall be trans-ported to destination, and it shall thereupon be theduty of the initial carrier to route said property and!ssue a through bill of lading therefor as so directed,and to transport said property over its own line oriines and deliver the same to a connecting line orlines according to such through route, and it shall bethe duty of each of said connecting carriers toreceive said property and transport it over the saidline or lines and deliver the same to the next suc-ceeding carrier or consignee according to the rout-ing instructions in said bill of lading: Provided, how-ever. That the shipper shall in all instances have theright to determine, where competing lines of rail-road constitute portions of a through line or route,over which of said competing lines so constituting aportion of said through line or route his freight shallbe transported.

(9) Liability of carriers where property is deliveredcontrary to routing instructions.

Whenever property is diverted or delivered by onecarrier to another carrier contrary to routing in-structions in the bill of lading, unless such diversionor delivery is in compliance with a lawful order, rule,or regulation of the commission, such carriers shall,in a suit or action in any court of competent juris-diction, be jointly and severally liable to the carrierthus deprived of its right to participate in the haulof the property, for the total amount of the rate orcharge it would have received had it participated inthe haul of the property. The carrier to which theproperty is thus diverted shall not be liable in suchsuit or action if it can show, the burden of proofbeing upon it, that before carrying the property ithad no notice, by bill of lading, waybill or otherwise,of the routing instructions. In any judgment whichmay be rendered the plaintiff shall be allowed torecover against the defendant a reasonable attor-ney's fee to be taxed in the case,

Page 5462


(10) Direction of unrouted traffic by Commission.With respect to traffic not routed by the shipper,

the commission may, whenever the public interestand a fair distribution of the traffic require, direstthe route which such traffic shall take after it ar-rives at the terminus of one carrier or at a junctionpoint with another carrier, and is to be there deliv-ered to another carrier.

(11) Disclosure or solicitation of information concern-ing shipments unlawful; exceptions.

It shall be unlawful for any common carrier sub-ject to the provisions of this chapter, or any officer,agent, or employee of such common carrier, or forany other person or corporation lawfully authorizedby such common carrier to receive informationtherefrom, knowingly to disclose to or permit to beacquired by any person or corporation other thanthe shipper or consignee, without the consent of suchshipper or consignee, any information concerningthe nature, kind, quantity, destination, consignee, orrouting of any property tendered or delivered to suchcommon carrier for interstate transportation, whichinformation may be used to the detriment or preju-dice of such shipper or consignee, or which mayimproperly disclose his business transactions to acompetitor: and it shall also be unlawful for anyperson or corporation to solicit or knowingly receiveany such information which may be so used: Pro-vided, That nothing in this chapter shall be con-strued to prevent the giving of such information inresponse to any legal process issued under the au-thority of any State or Federal court, or to any officeror agent of the Government of the United States,or of any State or Territory, in the exercise of hispowers, or to any officer or other duly authorizedperson seeking such information fox the prosecutionof persons charged with or suspected of crime; orinformation given by a common carrier to anothercarrier or its duly authorized agent, for the purposeof adjusting mutual traffic accounts in the ordinarycourse of business of such carriers.

(12) Penalty for violation of preceding provisions.Any person, corporation, or association violating

any of the provisions of the next preceding paragraphof this section shall be deemed guilty of a misde-meanor, and for each offense, on conviction, shallpay to the United States a penalty of not more than$1,000.

(13) Allowance for service or facilities furnished byshipper.

If the owner of property transported under thischapter directly or indirectly renders any serviceconnected with such transportation, or furnishesany instrumentality used therein, the charge and

allowance therefor shall be published in tariffs orschedules filed in the manner provided in this chap-

ter and shall be no more than is just and reasonable,and the commission may, after hearing on a com-plaint or on its own initiative, determine what is areasonable charge as the maximum to be paid bythe carrier or carriers for the services so renderedor for the use of the instrumentality so furnished,and fix the same by appropriate order, which order

shall have the same force and effect and be enforced

in like manner as the orders above Provlded forunder this section.

(14) Other powers of Commission not excluded.The foregoing enumeration of powers shall not ex-

clude any power which the commission would other-wise have in the making of an order under the pro-visions of this chapter. (Feb. 4, 1887, ch. 104, part I,§ 15, 24 Stat. 384; June 29, 1906, ch. 3591, § 4, 34 Stat.589; June 18, 1910, ch. 309, § 12, 36 Stat. 551; Feb. 28,1920, ch. 91, §§ 418-421, 41 Stat. 484-488; Mar. 4,1927, ch. 510, § 2, 44 Stat. 1447; June 19, 1934, ch.652, § 602 (b), 48 Stat. 1102; Aug. 9, 1935, ch. 498,§ 1, 49 Stat. 543; Sept. 18, 1940, ch. 722, title I, § 10(a-d), 54 Stat. 911.)

REFERENCES N TEXT

In par. (7), "after Sept. 18, 1940" read "after the datethis amendatory provision takes effect" as it appeared inact Sept. 18, 1940, § 10 (c), cited to text.

REPP-AUS

The provisions of this section, insofar as they relatedto communication by wire or wireless, or to telegraph,telephone, or cable companies operating by wire or wire-less, were repealed by the Communications Act of June 19,1934, ch. 652, § 602 (b), 48 Stat. 1102. See chapter 5 ofTitle 47, Telegraphs, Telephones, and Radiotelegraphs.

CRoss REFEMNCESReadjustment in rates, fares, and charges to shippers.

see section 65a of this title.

§ 15a. Fair return for carriers.(1) When used in this section, the term "rates"

means rates, fares, and charges, and all classifica-tions, regulations, and practices relating thereto.

(2) In the exercise of its power to prescribe justand reasonable rates the Commission shall givedue consideration, among other factors, to the effectof rates on the movement of traffic by the carrieror carriers for which the rates are prescribed; to theneed, in the public interest, of adequate and efficientrailway transportation service at the lowest costconsistent with the furnishing of such service; andto the need of revenues sufficient to enable the car-riers, under honest, economical, and efficient man-agement to provide such service. (Feb. 4, 1887, ch.104, part I, § 15a; Feb. 28, 1920, ch. 91, § 422, 41 Stat.488; June 16, 1933, ch. 91, title II, § 205, 48 Stat. 220;Sept. 18, 1940, ch. 722, title I, § 10 (e), 54 Stat. 912.)

§ 15b. Collection of excess income discontinued; gen-eral railroad contingent fund liquidated; distri-bution of moneys; computation of tax liabilities.

(a) All moneys which were recoverable by andpayable to the Interstate Commerce Commission,under paragraph (6) of section 15a of this title,as in force prior to June 16, 1933, shall cease to beso recoverable and payable; and all proceedingspending for the recovery of any such moneys shallbe terminated. The general railroad contingentfund established under section 15a of this title shallbe liquidated and the Secretary of the Treasury shalldistribute the moneys in such fund among the car-riers which have made payments under said section,so that each such carrier shall receive an amountbearing the same ratio to the total amount in suchfund that the total of amounts paid under such sec-tion by such carrier bears to the total of amountspaid under said section by all carriers; except that if

I 15bPage 5463


the total amount in such fund exceeds the total ofamounts paid under said section by all carriers suchexcess shall be distributed among such carriers upon

the basis of the average rate of earnings (as deter-mined by the Secretary of the Treasury) on the in-

vestment of the moneys in such fund and differencesin dates of payments by such carriers.

(b) The income, war-profits, and excess-profitstax liabilities for any taxable period ending afterFebruary 28, 1920, of the carriers and corporationswhose income, war-profits, or excess-profits tax lia-bilities were affected by section 15a of this title,as in force prior to June 16, 1933, shall be computedas if said section had never been enacted, exceptthat, in the case of carriers or corporations whichhave made payments under paragraph (6) of sec-tion 15a of this title, an amount equal to such pay-ments shall be excluded from gross income for thetaxable periods with respect to which they weremade. All distributions made to carriers in accord-ance with subdivision (a) of this section shall be in.cluded in the gross income of the carriers for thetaxable period in which this section is enacted. Theprovisions of this subdivision shall not be held toaffect (1) the statutes of limitations with respect tothe assessment, collection, refund, or credit of in-come, war-profits or excess-profits taxes or (2) theliabilities for such taxes of any carriers or corpora-tions if such liabilities were determined prior to June16, 1933, in accordance with section 1249 or 2606 ofTitle 26, or in accordance with a final judgment of a

court, an order of the Board of Tax Appeals whichhad become final, or an offer in compromise duly

accepted in accordance with law. (June 16, 1933, ch.91, title II, § 206, 48 Stat. 220.)

REFERENCES IN TEXT

Former paragraph 6 of section 15a of this title, to whichreference is made in this section, provided as follows:"(6) Disposition of amounts received in excess of 6 percentum. If, under the provisions of this section, anycarrier receives for any year a net railway operating in-come in excess of 6 per centum of the value of the railwayproperty held for and used by it in the service of trans-portation, one-half of such excess shall be placed in areserve fund established and maintained by such carrier,and the remaining one-half thereof shall, within the firstfour months following the close of the period for whichsuch computation is made, be recoverable by and paid tothe commission for the purpose of establishing and main-taining a general railroad contingent fund as hereinafterdescribed. For the purposes of this paragraph the valueof the railway property and the net railway operating in-come of a group of carriers, which the commission findsare under common control and management and areoperated as a single system, shall be computed for thesystem as. a whole irrespective of the separate ownershipand accounting returns of the various parts of such sys-tem. The value of such railway property shall be deter-mined by the commission In the manner provided inparagraph (4)."

The Board of Tax Appeals referred to in subsec. (b)was changed to The Tax Court of the United States byact Oct. 21, 1942, 4:30 p. m., E. W. T., ch. 619, title V, § 504(a), (c), 56 Stat. 957. See section 1100 of Title 26, In-ternal Revenue Code.

§ 16. Orders of Commission and enforcement thereof;forfeitures-(1) Orders by Commission for pay-ment of damages.

If, after hearing on a complaint made as provided

In section 13 of this title, the commission shall

determine that any party complainant is entitled toan award of damages under the provisions of this

chapter for a violation thereof, the commission shallmake an order directing the carrier to pay to thecomplainant the sum to which he is entitled on orbefore a day named.

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

If a carrier does not comply with an order for thepayment of money within the time limit in suchorder, the complainant, or any person for whosebenefit such order was made, may file in the districtcourt of the United States for the district in whichhe resides or in which is located the principal oper-ating office of the carrier, or through which the roadof the carrier runs, or in any State court of generaljurisdiction having jurisdiction of the parties, a com-plaint setting forth briefly the causes for which heclaims damages, and the order of the commissionin the premises. Such suit in the district court ofthe United States shall proceed in all respects likeother civil suits for damages, except that on the trialof such suit the findings and order of the commissionshall be prima facie evidence of the facts thereinstated, and except that the plaintiff shall not beliable for costs in the district court nor for costs atany subsequent stage of the proceedings unless theyaccrue upon his appeal. If the plaintiff shall finallyprevail he shall be allowed a reasonable attorney's

fee, to be taxed and collected as a part of the costsof the suit.

(3) Limitation of actions.(a) All actions at law by carriers subject to this

chapter for recovery of their charges, or any partthereof, shall be begun within two years from thetime the cause of action accrues, and not after.

(b) All complaints against carriers subject to thischapter for the recovery of damages not based onovercharges shall be filed with the commission withintwo years from the time the cause of action ac-crues, and not after, subject to subdivision (d) of thisparagraph.

(c) For recovery of overcharges action at law shallbe begun or complaint filed with the commissionagainst carriers subject to this chapter within twoyears from the time the cause of action accrues, andnot after, subject to subdivision (d) of this para-graph, except that if claim for the overcharge hasbeen presented in writing to the carrier within thetwo-year period of limitation said period shall beextended to include six months from the time noticein writing is given by the carrier to the claimant ofdisallowance of the claim, or any part or partsthereof, specified in the notice.

(d) If on or before expiration of the two-yearperiod of limitation in subdivision (b) of this para-graph or of the two-year period of limitation insubdivision (c) of this paragraph a carrier subjectto this chapter begins action under subdivision (a)of this paragraph for recovery of charges in respectof the same transportation service, or, without be-ginning action, collects charges in respect of thatservice, said period of limitation shall be extendedto include ninety days from the time such action isbegun or such charges are collected by the carrier.

Page 5464


(e) The cause of action in respect of a shipmentof property shall, for the purposes of this section, bedeemed to accrue upon delivery or tender of deliverythereof by the carrier, and not after.

(f) A complaint for the enforcement of an orderof the commission for the payment of money shall befiled in the district court or the State court withinone year from the date of the order, and not after.

(g) The term "overcharges" as used in this sec-tion shall be deemed to mean charges for trans-portation services in excess of those applicablethereto under the tariffs lawfully on file with thecommission.

(h) The provisions of this paragraph shall ex-tend to and embrace cases in which the cause ofaction accrued prior to June 7, 1924, as well as casesin which the cause of action accrues thereafter, ex-cept that actions at law begun or complaints filedwith the commission against carriers subject to thischapter for the recovery of overcharges where thecause of action accrued on or after March 1, 1920,shall not be deemed to be barred under subdivision(c) of this paragraph if such actions shall have beenbegun or complaints filed prior to June 7, 1924, orwithin six months thereafter.

(4) Joinder of parties; process; judgment.In such suits all parties in whose favor the com-

mission may have made an award for damages by asingle order may be joined as plaintiffs, and all ofthe carriers parties to such order awarding suchdamages may be joined as defendants, and suchsuit may be maintained by such joint plaintiffs andagainst such joint defendants in any district whereany one of such joint plaintiffs could maintain suchsuit against any one of such joint defendants; andservice of process against any one of such defend-ants as may not be found in the district where thesuit is brought may be made in any district wheresuch defendant carrier has its principal operatingoffice. In case of such joint suit the recovery, ifany, may be by judgment in favor of any one of suchplaintiffs, against the defendant found to be liableto such plaintiff.

(5) Service of order of Commission and notices ofproceedings.

Every order of the commission shall be forthwithserved upon the designated agent of the carrier inthe city of Washington or in such other manner asmag be provided by law. In proceedings before theCommission involving the lawfulness of rates, fares,charges, classifications, or practices, service of no-tice upon an attorney in fact of a carrier who hasfiled a tariff or schedule in behalf of such carriershall be deemed to be due and sufficient service uponthe carrier, except where the carrier has designatedan agent in the city of Washington, District of Co-lumbia, upon whom service of notices and processesmay be made, as provided in section 50 of thistitle.

(6) Suspension or modification of orders.The commission shall be authorized to suspend

or modify its orders upon such notice and in suchmanner as it shall deem proper.

94506o-48--vol. 4- 51

(7) Compliance with orders.It shall be the duty of every common carrier, its

agents and employees, to observe and comply withsuch orders so long as the same shall remain in effect.(8) Failure of carrier or officer to obey orders; pen-

alty.Any carrier, any officer, representative, or agent of

a carrier, or any receiver, trustee, lessee, or agentof either of them, who knowingly fails or neglectsto obey any order made under the provisions ofsections 3, 13, or 15 of this title shall forfeit to theUnited States the sum of $5,000 for each offense.Every distinct violation shall be a separate offense,and in case of a continuing violation each day shallbe deemed a separate offense.

(9) Suit for recovery of forfeiture.The forfeiture provided for in this chapter shall be

payable into the Treasury of the United States, andshall be recoverable in a civil suit in the name ofthe United States, brought in the district where thecarrier has its principal operating office, or in anydistrict through which the road of the carrier runs.

(10) District attorneys to prosecute for forfeitures;costs and expenses.

It shall be the duty of the various district attor-neys, under the direction of the Attorney General ofthe United States, to prosecute for the recovery offorfeitures. The costs and expenses of such prosecu-tion shall be paid out of the appropriation for theexpenses of the courts of the United States.

(11) Employment of attorneys by Commission.The commission may employ such attorneys as It

finds necessary for proper legal aid and service ofthe commission or its members in the conduct oftheir work, or for proper representation of the publicinterests in investigations made by it or cases orproceedings pending before it, whether at the com-mission's own instance or upon complaint, or toappear for or represent the commission in any casein court; and the expenses of such employment shallbe paid out of the appropriation for the commission.

(12) Proceedings to enforce orders other than forpayment of money.

If any carrier fails or neglects to obey any orderof the commission other than for the payment ofmoney, while the same is in effect, the InterstateCommerce Commission or any party injured thereby,or the United States, by its Attorney General, mayapply to any district court of the United States ofcompetent jurisdiction for the enforcement of suchorder. If, after hearing, such court determines thatthe order was regularly made and duly served, andthat the carrier is in disobedience of the same, suchcourt shall enforce obedience to such order by awrit of injunction or other proper process, manda-tory or otherwise, to restrain such carrier, its officers,agents, or representatives, from further disobedienceof such order, or to enjoin upon it or them obedienceto the same.

(13) Copies of schedules, tariffs, contracts, etc., keptas public records; evidence.

The copies of schedules and classifications andtariffs of rates, fares, and charges, and of all con-tracts, agreements, and arrangements between com-mon carriers filed with the commission as herein

Page 5465


provided, and the statistics, tables, and figures con-tained in the annual or other reports of carriersmade to the commission as required under the pro-visions of this chapter shall be preserved aspublic records in the custody of the secretary ofthe commission, and shall be received as prima facieevidence of what they purport to be for the purposeof investigations by the commission and in alljudicial proceedings; and copies of and extracts fromany of said schedules, classifications, tariffs, con-tracts, agreements, arrangements, or reports, madepublic records as aforesaid, certified by the secre-tary, under the commission's seal, shall be receivedin evidence with like effect as the originals. (Feb.4, 1887, ch. 104, part I, § 16, 24 Stat. 384; Mar. 2,1889, ch. 382, § 5, 25 Stat. 859; June 29, 1906, ch.3591, § 5, 34 Stat. 590; June 18, 1910, ch. 309, § 13,36 Stat. 554; Mar. 3, 1911, ch. 231, § 291, 36 Stat.1167; Oct. 22, 1913, ch. 32, 38 Stat. 219; Feb. 28,1920, ch. 91, §§ 423-429, 41 Stat. 491, 492; June 7,1924, ch. 325, 43 Stat. 633; Aug. 9, 1935, ch. 498,§ 1, 49 Stat. 543; Sept. 18, 1940, ch. 722, title I,§ 11 (a), (b), 54 Stat. 912, 913.)

AMENqDMzNTs

1940-Par. (2) amended by act Sept. 18, 1940, § 11 (a)(1), cited to text.

Par. 3 (a) and (c) amended by act Sept. 18, 1940, § 11(a) (2) and (3), respectively, cited to text, by substitutinga two-year limitation for the old three-year.

Par. (3) (d) and (f) amended by act Sept. 18, 1940,§ 11 (a) (4) and (5), respectively, cited to text.

Par. (5) amended by act Sept. 18, 1940, § 11 (b), citedto text.

Par. (12) amended by act Sept. 18, 1940, § 11 (a) (6),cited to text.

EFEcTcrvE DATESection 11 (c) of said act Sept. 18, 1940, provided as

follows: "(c) The amendments made by subsection (a)of this section to paragraph (3) (a) and (c) of section 16of the Interstate Commerce Act, as amended, shall applyonly in the case of causes of action accruing after the datethis section takes effect."

CRoss REERENCESMotor Carrier Act, application of this section to, see

section 304 (d) of this title.Present provisions governing rehearings are contained

in section 17 of this title.

FEDERAL RULES OF CIvIL PROCEDUREEffect of Rules 44 and 54 on this section, see note by

Advisory Committee under said Rules 44 and 54.Judgment and costs, see Rule 54 following section 723c

of Title 28, Judicial Code and Judiciary.Proof of official records, see Rule 44, following section

723c of Title 28, Judicial Code and Judiciary.

§ 16a. Repealed. Sept. 18, 1940, ch. 722, title I, § 12,54 Stat. 913.

Section, act Feb. 4, 1887, ch. 104, § 16a, as added by actJune 29, 1906, ch. 3591, § 6, 34 Stat. 592, related to re-hearings.

§17. Commission procedure; delegation of duties;rehearings-(1) Divisions of Commission; or-ganization; composition.

The Commission is authorized by its order todivide the members thereof into as many divisions(each to consist of not less than three members) asit may deem necessary, which may be changedfrom time to time. Such divisions shall be desig-nated, respectively, division one, division two, and

so forth, or by a term descriptive of the principal

subject, work, business, or function assigned or re-"ferred to such divisions. The Commission may des-ignate one or more of its divisions as appellate di-visions. Any Commissioner may be assigned to suchdivision or divisions as the Commission may direct,and the senior in service of the Commissioners con-stituting a division shall act as chairman thereofunless otherwise directed by the Commission. Whena vacancy occurs in any division or when a Commis-sioner because of absence, or other cause, is unableto serve thereon, the Chairman of the Commissionor any Commissioner designated by him for thatpurpose may serve temporarily on such divisionuntil the Commission otherwise orders.

(2) Reference of matters to divisions, individual Com-missioners or boards.

The Commission may by order direct that any ofits work, business, or functions under any provisionof law (except matters required to be referred tojoint boards by section 305 of this title, and exceptfunctions vested in the Commission under this sec-tion), or any matter which shall have been or maybe referred to it by Congress or by either branchthereof, be assigned or referred to any division, toan individual Commissioner, or to a board to be com-posed of three or more eligible employees of the Com-mission (hereinafter in this section called a "board")to be designated by such order, for action thereon,and the Commission may by order at any time amend,modify, supplement, or rescind any such assignmentor reference. The following classes of employees shallbe eligible for designation by the Commission to serveon such boards: examiners, directors or assistantdirectors of bureaus, chiefs of sections, and attorneys.The assignment or reference, to divisions, of work,business, or functions relating to the lawfulness ofrates, fares, or charges shall be made according to thecharacterof regulation to be exercised and not ac-cording to the kind or class of the carriers involvedor to the form or mode of transportation in whichsuch carriers may be engaged. When an individualCommissioner, or any employee, is unable to act uponany matter so assigned or referred because of absenceor other cause, the Chairman of the Commission maydesignate another Commissioner or employee, as thecase may be, to serve temporarily until the Commis-sion otherwise orders.

(3) Conduct of prbceedings; seal; oaths; quorum;rules.

The Commission shall conduct its proceecngsunder any provision of law in such manner as willbest conduce to the proper dispatch of business andto the ends of justice. The Commission shall havean official seal, which shall be judicially noticed.Any member of the Commission, the Secretary ofthe Commission, or any member of a board may ad-minister oaths and affirmations and any member ofthe Commission or the Secretary of the Commission(or any member of a board in connection with theperformance of any work, business, or functions re-ferred under this section to a board upon which heserves) may sign subpenas. A majority of the Com-mission, of a division, or of a board shall constitutea quorum for the transaction of business. The Com-mission may, from time to time, make or amend such

§ 16a Page 5468


general rules or orders as may be requisite for theorder and regulation of proceedings before it, orbefore any division, individual Commissioner, orboard, including forms of notices and the servicethereof, which shall conform, as nearly as may be,to those in use in the courts of the United States.Any party may appear before the Commission orany division, individual Commissioner, or board andbe heard in person or by attorney. Every vote andofficial act of the Commission, or of any division,individual Commissioner, or board, shall be enteredof record, and such record shall be made public uponthe request of any party interested. All hearingsbefore the Commission, a division, individual Com-missioner, or board shall be public upon the requestof any party interested. No Commissioner or em-ployee shall participate in any hearing or proceedingin which he shall have any pecuniary interest.

(4) Powers of divisions, boards, etc.; effect of orders,etc.

A division, an individual Commissioner, or a boardshall have authority to hear and determine, order,certify, report, or otherwise act as to any work,business, or functions assigned or referred theretounder the provisions of this section, and with re-spect thereto shall have all the jurisdiction andpowers conferred by law upon the Commission, andbe subject to the same duties and obligations. Thesecretary and seal of the Commission shall be thesecretary and seal of each division, individual Com-missioner, or board. Except as otherwise providedin this section, any order, decision, or requirementof a division, an individual Commissioner, or a board,with respect to any matter so assigned or referred,shall have the same force and effect, and may bemade and evidenced in the same manner as if madeor taken by the Commission.

(5) Findings, etc, of Commissioner or board; accom-panying statement and recommended order;copies to parties; exceptions; recommended orderas Commission's order.

Any finding, report, or requirement of an individ-ual Commissioner or board, with respect to anymatter so assigned or referred involving the takingof testimony at a public hearing, shall be accom-panied by a statement in writing of the reasonstherefor, together with a recommended order, whichshall be filed with the Commission. Copies thereofshall be served upon interested parties (including,in proceedings under chapter 8 of this title, personsspecified in section 305 (e) of this title), who mayfile exceptions thereto, but if within twenty daysafter service upon such persons, or within such fur-ther period as the Commission or a duly designateddivision thereof may authorize, no exceptions shallhave been filed, such recommended order shall be-come the order of the Commission and become effec-tive unless within such period the order shall havebeen stayed or postponed by the Commission or bya duly designated division thereof. The Commis-sion, or a duly designated division thereof, upon itsown motion may, and where exceptions are filed itshall, reconsider the matter either upon the samerecord or after further hearing, and such recom-mended order shall thereupon be stayed or post-poned pending final determination thereof.

(6) Rehearing, reargument, or reconsideration of de-cisions, orders, and requirements. .I

After a decision, order, or requirement shall havebeen made by the Commission, a division, and indi-vidual Commissioner, or a board, or after an orderrecommended by an individual Commissioner or aboard shall have become the order of the Commis-sion as provided in paragraph (5) of this section,any party thereto may at any time, subject to suchlimitations as may be established by the Commis-sion as hereinafter authorized, make application forrehearing, reargument, or reconsideration of thesame, or of any matter determined therein. Suchapplications shall be governed by such general rulesas the Commission may establish. Any such appli-cation, if the decision, order, or requirement wasmade by the Commission, shall be considered andacted upon by the Commission. If the decision,order, or requirement was made by a division, an in-dividual Commissioner, or a board, such applica-tion shall be considered and acted upon by the Com-mission or referred to an appropriate appellate di-vision for consideration and action. Rehearing, re-argument, or reconsideration may be granted if suf-ficient reason therefor be made to appear; but tlfeCommission may, from time to time, make or amendgeneral rules or orders establishing limitations uponthe right to apply for rehearing, reargument, or re-consideration of a decision, order, or requirement ofthe Commission or of a division so as to confine suchright to proceedings, or classes of proceedings, in-volving issues of general transportation importance.Notwithstanding the foregoing provisions of thisparagraph, any application for rehearing, reargu-ment, or reconsideration of a matter assigned or re-ferred to an individual Commissioner or a board,under the provisions of paragraph (2) of this sec-tion, if such application shall have been filed withintwenty days after the recommended order in theproceeding shall have become the order of the Com-mission as provided in paragraph (5) of this section,and if such matter shall not have been reconsideredor reheard as provided in said paragraph, shall be re-ferred to an appropriate appellate division of theCommission and such division shall reconsider thematter either upon the same record or after afurther hearing.

(7) Reversal or modification after rehearing, etc.If after rehearing, reargument, or reconsideration

of a decision, order, or requirement of a division, anindividual Commissioner, or board it shall appearthat the original decision, order, or requirement is inany respect unjust or unwarranted, the Commissionor appellate division may reverse, change, or modifythe same accordingly. Any decision, order, or re-quirement made after rehearing, reargument, or re-consideration, reversing, changing, or modifying theoriginal determination shall be subject to the sameprovisions with respect to rehearing, reargument, orreconsideration as an original order.

(8) Stay of decisions, etc., not effective at time ofapplication for rehearing, etc.

Where application for rehearing, reargument, or

reconsideration of a decision, order, or requirementof a division, an individual Commissioner, or board

Page 5467


Is made in accordance with the provisions of thissection and the rules and regulations of the Com-mission, and the decision, order, or requirement hasnot yet become effective, the decision, order, or re-quirement shall be stayed or postponed pending dis-position of the matter by the Commission or appel-late division; but otherwise the making of such anapplication shall not excuse any person from com-plying with or obeying the decision, order, or re-quirement, or operate to stay or postpone the en-forcement thereof, without the special order of theCommission.

(9) Judicial relief from decisions, etc., upon denial orother disposition of application for rehearing, etc.

When an application for rehearing, reargument, orreconsideration of any decision, order, or require-ment of a division, an individual Commissioner, or aboard with respect to any matter assigned or refer-red to him or it shall have been made and shall havebeen denied, or after rehearing, reargument, or re-consideration otherwise disposed of, by the Commis-sion or an appellate division, a suit to enforce,enjoin, suspend, or set aside such decision, order, orrequirement, in whole or in part, may be brought ina court of the United States under those provisionsof law applicable in the case of suits to enforce, en-join, suspend, or set aside orders of the Commission,but not otherwise.

(10) Reference of administrative matters to exam-iners.

Any matter arising in the administration of chap-ter 8 of this title as to which a hearing is to be heldmay be referred to an examiner of the Commission,for action thereon, subject to the conditions andlimitations provided in this section in the case ofreference of work, business or functions, as to whicha hearing is to be held, to an individual Commis-sioner or board.

(11) Intervention of representatives of employees.Representatives of employees of a carrier, duly

designated as such, may intervene and be heard inany proceeding arising under this chapter andchapters 8 and 12 of this title affecting suchemployees.

(12) Admission to practice before Commission.The Commission is authorized to promulgate rea-

sonable rules and regulations relating to admissionto practice before it, and is authorized to impose areasonable fee for such admission, and such feesshall be covered into the Treasury of the UnitedStates as miscellaneous receipts. (Feb. 4, 1887, ch.104, part I, § 17, 24 Stat. 385; Mar. 2, 1889, ch. 382, § 6,25 Stat. 861; Aug. 9, 1917, ch. 50, § 2, 40 Stat. 270;Feb. 28, 1920, ch. 91, §§ 430-432,41 Stat. 492, 493; Feb.28, 1933, ch. 136, 47 Stat. 1368; Aug. 9, 1935, ch.498, § 1, 49 Stat. 543; Sept. 18, 1940, ch. 722, titleI, § 12, 54 Stat. 913.)

CODIFICATION

Provisions relating to rehearings were formerly con-tained in section 16a of this title, repealed by act Sept.18, 1940, cited to text.

Am:ENDmaENrs

1940-Act Sept. 18, 1940, cited to text, amended sectiongenerally, revising old text and incorporating new matter.

CROSS REFERENCESMotor Carrier Act, application of this section to, see sec-

tion 305 (h) of this title.

§ 18. Employees; appointment and compensation; wit-ness fees; expenses-() Commissioners' salaries;secretary and employees; compensation; witnessfees.

Each commissioner shall receive an annual salaryof $12,000, payable in the same manner as the judgesof the courts of the United States. The commissionshall appoint a secretary, who shall receive an annualsalary of $7,500, payable in like manner. The com-mission shall have authority to employ and fix thecompensation of such other employees as it may findnecessary to the proper performance of its duties.Until otherwise provided by law, the commissionmay hire suitable offices for its use, and shall haveauthority to procure all necessary office supplies.Witnesses summoned before the commission shall bepaid the same fees and mileage that are paid wit-nesses in the courts of the United States.

(2) Expenses of Commission.All of the expenses of the commission, including

all necessary expenses for transportation incurred bythe commissioners, or by their employees under theirorders, in making any investigation, or upon officialbusiness in any other places than in the city ofWashington, shall be allowed and paid on the pres-entation of itemized vouchers therefor approved bythe chairman of the commission. (Feb. 4, 1887, ch.104, part I, § 18; 24 24 Stat. 386;. Mar. 2, 1889, ch.382, § 7, 25 Stat. 861; June 29, 1906, ch. 3591, § 8,34 Stat. 595; Aug. 9. 1917, ch. 50, § 1, 40 Stat. 270;Feb. 28, 1920, ch. 91, §§ 433, 440, 41 Stat. 493, 497.)

CRoss REFEnENcEsClassification of civilian employees of Government, see

section 661 et seq. of Title 5, Executive Departments andGovernment Officers and Employees.

§ 19. Office and sessions.

The principal office of the commission shall beIn the city of Washington, where its general sessionsshall be held; but whenever the convenience of thepublic or of the parties may be promoted or delay orexpense prevented thereby, the commission may holdspecial sessions in any part of the United States. Itmay, by one or more of the commissioners, prosecuteany inquiry necessary to its duties, in any part of theUnited States, into any matter or question of factpertaining to the business of any common carriersubject to the provisions of this chapter. (Feb. 4,1887, ch. 104, Part I, § 19, 24 Stat. 386; Aug. 9, 1935,ch. 498, § 1, 49 Stat. 543.)

§ 19a. Valuation of property of carriers-(a) Physicalvaluation of property of carriers; classificationand inventory.

The Commission shall, as hereinafter provided, in-vestigate, ascertain, and report the value of all theproperty owned or used by every common carrier sub-ject to the provisions of this chapter, except anystreet, suburban, or interurban electric railway whichis not operated as a part of a general steam railroadsystem of transportation; but the Commission mayin its discretion investigate, ascertain, and report thevalue of the property owned or used by any such elec-

Page 5468


tric railway subject to the provisions of this chapterwhenever in its judgment such action is desirablein the public interest. To enable the Commissionto make such investigation and report, it is author-ized to employ such experts and other assistants asmay be necessary. The Commission may appoint ex-aminers who shall have power to administer oaths,examine witnesses, and take testimony. The Com-mission shall, subject to the exception hereinbeforeprovided for in the case of electric railways, make aninventory which shall list the property of every com-mon carrier subject to the provisions of this chapterin detail, and show the value thereof as hereinafterprovided, and shall classify the physical property, asnearly as practicable, in conformity with the classifi-cation of expenditures for road and equipment, asprescribed by the Interstate Commerce Commission.

(b) Cost of property; elements considered in deter-mination; gifts, grants, etc.

First. In such investigation said commission shallascertain and report in detail as to each piece ofproperty, other than land owned or used by said com-mon carrier for its purposes as a common carrier,the original cost to date, the cost of reproduction new,the cost of reproduction less depreciation, and ananalysis of the methods by which these several costsare obtained, and the reason for their differences, if.any. The commission shall in like manner ascertainand report separately other values, and elements ofvalue, if any, of the property of such common carrier,and an analysis of the methods of valuation em-ployed, and of the reasons for any differences betweenany such value and each of the foregoing cost values.

Second. Such investigation and report shall statein detail and separately from improvements the orig-inal cost of all lands, rights of way, and terminalsowned or used for the purpose of a common carrier,and ascertained as of the time of dedication to pub-lic use, and the present value of the same.

Third. Such investigation and report shall showseparately the property held for purposes other thanthose of a common carrier, and the original cost andpresent value of the same, together with an analysisof the methods of valuation employed.

Fourth. In ascertaining the original cost to date ofthe property of such common carrier the commission,in addition to such other elements as it may deemnecessary, shall investigate and report upon the his-tory and organization of the present and of any pre-vious corporation operating such property; upon anyincreases or decreases of stocks, bonds, or other se-curities, in any reorganization; upon moneys receivedby any such corporation by reason of any issues ofstocks, bonds, or other securities; upon the syndi-cating, banking, and other financial arrangementsunder which such issues were made and the expensethereof; and upon the net and gross earnings of suchcorporations; and shall also ascertain and report insuch detail as may be determined by the commissionupon the expenditure of all moneys and the pur-poses for which the same were expended.

Fifth. The commission shall ascertain and reportthe amount and value of any aid, gift, grant of rightof way, or donation, made to any such common car-rier, or to any previous corporation operating such

property, by the Government of the United States orby any State, county, or municipal government, orby individuals, associations, or corporations; and itshall also ascertain and report the grants of land toany such common carrier, or any previous corpora-tion operating such property, by the Government ofthe United States, or by any State, county, or mu-nicipal government, and the amount of money de-rived from the sale of any portion of such grantsand the value of the unsold portion thereof at thetime acquired and at the present time, also, theamount and value of any concession and allowancemade by such common carrier to the Government ofthe United States, or to any State, county, or mu-nicipal government in consideration of such aid, gift,grant, or donation.

(c) Investigation; procedure and forms.Except as herein otherwise provided, the commis-

sion shall have power to prescribe the method ofprocedure to be followed in the conduct of the in-vestigation, the form in which the results of thevaluation shall be submitted, and the classificationof the elements that constitute the ascertained value,and such investigation shall show the value of theproperty of every common carrier as a whole andseparately the value of its property in each of theseveral States and Territories and the District ofColumbia, classified and in detail as herein required.

(d) Time for beginning investigation; reports to Con-gress.

Such investigation shall be commenced withinsixty days after March 1, 1913, and shall be prose-cuted with diligence and thoroughness, and the resultthereof reported to Congress at the beginning of eachregular session until completed.

(e) Aid of carrier required; rules and regulations;inspection of records.

Every common carrier subject to the provisionsof this chapter shall furnish to the commission orits agents from time to time and as the commissionmay require maps, profiles, contracts, reports ofengineers, and any other documents, records, andpapers, or copies of any or all of the same, in aidof such investigation and determination of the valueof the property of said common carrier, and shallgrant to all agents of the commission free accessto its right-of-way, its property, and its accounts,records, and memoranda whenever and wherever re-quested by any such duly authorized agent, and everycommon carrier is directed and required to cooper-ate with and aid the commission in the work of thevaluation of its property in such further particularsand to such extent as the commission may requireand direct, and all rules and regulations made bythe commission for the purpose of administering theprovisions of this section and section 20 of thistitle shall have the full force and effect of law.Unless otherwise ordered by the commission, withthe reasons therefor, the records and data of thecommission shall be open to the inspection andexamination of the public.

(f) Valuation of extensions and improvements; revi-sions; reports.

Upon completion of the original valuations hereinprovided for, the Commission shall thereafter keep

Page 5469 § 19a


Itself informed of all new construction, extensions,improvements, retirements, or other changes in thecondition, quantity, use, and classification of theproperty of all common carriers as to which originalvaluations have been made, and of the cost of alladditions and betterments thereto and of all changesin the investment therein, and may keep itself in-formed of current changes in costs and values ofrailroad properties, in order that it may have avail-able at all times the information deemed by it to benecessary to enable it to revise and correct its pre-vious inventories, classifications, and values of theproperties; and when deemed necessary, may revise,correct, and supplement any of its inventories andvaluations.

(g) Reports and information to be furnished by car-riers.

To enable the Commission to carry out the pro-visions of paragraph (f) of this section, every com-mon carrier subject to the provisions of this chaptershall make such reports and furnish such informa-tion as the Commission may require.

(h) Notice of completion of tentative valuation; pro-tests; finality of report.

Whenever the commission shall have completedthe tentative valuation of the property of any com-mon carrier, as herein directed, and before such val-uation shall become final, the commission shall givenotice by registered letter to the said carrier, theAttorney General of the United States, the governorof any State in which the property so valued is lo-cated, and to such additional parties as the com-mission may prescribe, stating the valuation placedupon the several classes of property of said carrier,and shall allow thirty days In which to file a protestof the same with the commission. If no protest isfiled within thirty days, said valuation shall becomefinal as of the date thereof.

(i) Protests; hearings; changes in valuations; finalvaluation and classification.

If notice of protest is filed the commission shall fixa time for hearing the same, and shall proceed aspromptly as may be to hear and consider any matterrelative and material thereto which may be pre-sented in support of any such protest so filed asaforesaid. If after hearing any protest of suchtentative valuation under the provisions of thischapter the commission shall be of the opinion thatits valuation should not become final, it shall makesuch changes as may be necessary, and shall issuean order making such corrected tentative valuationfinal as of the date thereof. All final valuations bythe commission and the classification thereof shallbe published and shall be prima facie evidence of thevalue of the property in all proceedings under thischapter as of the date of the fixing thereof, and inall judicial proceedings for the enforcement of thischapter, and in all judicial proceedings brought toenjoin, set aside, annul, or suspend, in whole orin part, any order of the Interstate CommerceCommission.

(j) Effect of evidence as to values; modification oforders.

If upon the trial of any action involving a finalvalue fixed by the commission, evidence shall be

introduced regarding such value which is found bythe court to be different from that offered upon thehearing before the commission, or additional theretoand substantially affecting said value, the court, be-fore proceeding to render judgment shall transmit acopy of such evidence to the commission, and shallstay further proceedings in said action for such timeas the court shall determine from the date of suchtransmission. Upon the receipt of such evidence thecommission shall consider the same and may fix afinal value different from the one fixed in the firstinstance, and may alter, modify, amend or rescindany order which it has made involving said finalvalue, and shall report its action thereon to saidcourt within the time fixed by the court. If thecommission shall alter, modify, or amend its order,such altered, modified, or amended order shall takethe place of the original order complained of andjudgment shall be rendered thereon as though madeby the commission in the first instance. If theoriginal order shall not be rescinded or changed bythe commission, judgment shall be rendered uponsuch original order.

(k) Receivers and trustees of carriers affected; non-compliance with law; penalty.

The provisions of this section shall apply to re-ceivers of carriers and operating trustees. In caseof failure or refusal on the part -of any carrier, re-ceiver, or trustee to comply with all the require-ments of this section and in the manner prescribedby the commission such carrier, receiver, or trusteeshall forfeit to the United States the sum of $500for each such offense and for each and every day ofthe continuance of such offense, such forfeitures tobe recoverable in the same manner as other for-feitures provided for in section 16 of this title.

(1) Mandamus to compel compliance with law.The district courts of the United States shall have

jurisdiction, upon the application of the AttorneyGeneral of the United States at the request of thecommission, alleging a failure to comply with or aviolation of any of the provisions of this section byany common carrier, to issue a writ or writs of man-damus commanding such common carrier to complywith the provisions of this section. (Feb. 4, 1887, ch.104, part I, § 19a, as added Mar. 1, 1913, ch. 92, 37Stat. 701, and amended Feb. 28, 1920, ch. 91, § 433, 41Stat. 493; June 7, 1922, ch. 210, §§ 1, 2, 42 Stat. 624;June 16, 1933, ch. 91, title II, §§ 207, 208, 48 Stat. 221;Aug. 9, 1935, ch. 498, § 1, 49 Stat. 543.)

Caoss Rm'za~wcEsValuation of property of common carrier by wire or

radio, see section 213 of Title 47, Telegraphs, Telephones,and Radio-Telegraphs.

F'EDEaAL RuLrs Op CrVIL PRocEoTuApplication of, see Rules 44, 81, following section 7236

of Title 28, Judicial Code and Judiciary.Effect of rules on this section, see notes by Advisory

Committee under Rules 44 and 81.

§ 20. Reports, records, and accounts of carriers; man-damus; liability of initial carrier for loss, etc.-(1) Reports from carriers and lessors.

The Commission is authorized to require annual,periodical, or special reports from carriers (as de-fined in this section) and from lessors (as de-

Page 5470


fined in this section), to prescribe the manner andform in which such reports shall be made, and torequire from such carriers and lessors specific andfull, true, and correct answers to all questions uponwhich the Commission may deem information to benecessary, classifying such carriers and lessors as itmay deem proper for any of these purposes. Suchannual reports shall give an account of the affairsof the carrier or lessor in such form and detail asmay be prescribed by the Commission.

(2) Period covered by and time for making reports;oaths for reports.

Said annual reports shall contain all the requiredinformation for the period of twelve months endingon the 31st day of December in each year, unlessthe Commission shall specify a different date, andshall be made out under oath and filed with the Com-mission at its office in Washington within threemonths after the close of the year for which thereport is made, unless additional time be grantedin any case by the Commission. Such periodical orspecial reports as may be required by the Com-mission under paragraph (1) of this section, shallalso be under oath whenever the Commission sorequires.

(3) Uniform system of accounts.The Commission may, in its discretion, for the

purpose of enabling It the better to carry out thepurposes of this chapter, prescribe a uniform systemof accounts applicable to any class of carriers sub-ject thereto, and a period of time within which suchclass shall have such uniform system of accounts, andthe manner in which such accounts shall be kept.

(4) Depreciation charges.The Commission shall, as soon as practicable, pre-

scribe for carriers the classes of property for whichdepreciation charges may properly be included un-der operating expenses, and the rate or rates of de-preciation which shall be charged with respect toeach of such classes of property, classifying the car-riers as it may deem proper for this purpose. TheCommission may, when it deems necessary, modifythe classes and rates so prescribed. When the Com-mission shall have exercised its authority under theforegoing provisions of this paragraph, carriers shallnot charge to operating expenses any depreciationcharges on classes of property other than those pre-scribed by the Commission, or charge with respectto any class of property a rate of depreciation otherthan that prescribed therefor by the Commission,and no such carrier shall include under operatingexpenses any depreciation charge in any form what-soe.er other than as prescribed by the Commission.

(5) Forms of accounts, records, and memoranda; ac-cess to records, etc., by Commission or agents.

The Commission may, in its discretion, prescribethe forms of any and all accounts, records, and mem-oranda to be kept by carriers and their lessors, in-cluding the accounts, records, and memoranda ofthe movement of traffic, as well as of the receipts andexpenditures of moneys, and it shall be unlawful forsuch carriers or lessors to keep any accounts, records,and memoranda contrary to any rules, regulations, ororders of the Commission with respect thereto. The

Commission or any duly authorized special agent,accountant, or examiner thereof shall at all timeshave authority to inspect and copy any and all ac-counts, books, records, memoranda, correspondence,and other documents, of such carriers and lessors,and such accounts, books, records, memoranda, cor-respondence, and other documents, of any personcontrolling, controlled by, or under common controlwith any such carrier, as the Commission deems rele-vant to such person's relation to or transactions withsuch carrier. The Commission or its duly authorizedspecial agents, accountants, or examiners shall at alltimes have access to all lands, buildings, or equip-ment of such carriers or lessors, and shall have au-thority under its order to inspect and examine anyand all such lands, buildings, and equipment. Suchcarriers, lessors, and other persons shall submit theiraccounts, books, records, memoranda, correspond-ence, and other documents for the inspection andcopying authorized by this paragraph, and such car-riers and lessors shall submit their lands, buildings,and equipment to inspection and examination, toany duly authorized special agent, accountant, orexaminer of the Commission, upon demand and thedisplay of proper credentials.

(6) Persons furnishing cars or protection against ele-ments; access to and forms of records, etc.; re-ports.

The Commission or any duly authorized specialagent, accountant, or examiner thereof shall at alltimes have authority to inspect and copy any andall accounts, books, records, memoranda, correspond-ence, and other documents, of persons which furnishcars or protective service against heat or cold toor on behalf of any carrier by railroad or expresscompany subject to this chapter: Provided, how-ever, That such authority shall be limited to ac-counts, books, records, memoranda, correspondence,or other documents which pertain or relate to thecars or protective service so furnished. The Com-mission shall further have authority, in its discre-tion, to prescribe the forms of any or all accounts,records, and memoranda which it is authorized bythis paragraph to inspect and copy, and to requirethe persons furnishing such cars or protective serv-ice, as aforesaid, to submit such reports and specificand full, true, and correct answers to such questions,relative to such cars or service, as the Commissionmay deem necessary. Persons furnishing such carsor protective service shall submit their accounts,books, records, memoranda, correspondence, or otherdocuments, to the extent above provided, for inspec-tion or copying to any duly authorized special agent,accountant, or examiner of the Commission upondemand and the display of proper credentials.

(7) Penalties and forfeitures in connection with ac-counts, records, reports, etc.

(a) In case of failure or refusal on the part ofany carrier, lessor, or other person to keep any ac-counts, records, and memoranda in the form andmanner prescribed, under authority of this section,by the Commission, or to submit any accounts, books,records, memoranda, correspondence, or other doc-uments to the Commission or any of its authorizedagents, accountants, or examiners for inspection or

Page 5471


copying, as required under this section, such carrier,lessor, or person shall forfeit to the United Statesnot to exceed $500 for each such offense and for eachday during which such failure or refusal continues.

(b) Any person who shall knowingly and willfullymake, cause to be made, or participate in the mak-ing of, any false entry in any annual or other reportrequired under this section to be filed, or in theaccounts of any book of accounts or in any recordsor memoranda kept by a carrier, or required underthis section to be kept by a lessor or other person, orwho shall knowingly and willfully destroy, mutilate,alter, or by any other means or device falsify therecord of any such accounts, records, or memoranda,or who shall knowingly and willfully neglect or failto make full, true, and correct entries in such ac-counts, records, or memoranda bf all facts and trans-actions- appertaining to the business of the carrier,lessor, or person, or shall knowingly and willfullykeep any accounts, records, or memoranda contraryto the rules, regulations, or orders of the Commis-sion with respect thereto, or shall knowingly or will-fully file with the Commission any false report orother document, shall be deemed guilty of a misde-meanor and shall be subject, upon conviction in anycourt of the United States of competent jurisdictionto a fine of not more than five thousand dollars orimprisonment for not more than two years, or bothsuch fine and imprisonment: Provided, That theCommission may in its discretion issue orders speci-fying such operating, accounting, or financial papers,records, books, blanks, tickets, stubs, correspondence,or documents of such carriers, lessors, or other per-sons as may, after a reasonable time, be destroyed,and prescribing the length of time the same shall bepreserved.

(c) Any carrier or lessor, or person furnishingcars or protective service, or any officer, agent, em-ployee, or representative thereof, who shall fail tomake and file an annual or other report with theCommission within the time fixed by the Commis-sion, or to make specific and full, true, and correctanswer to any question within thirty days from thetime it is lawfully required by the Commission so todo, shall forfeit to the United States the sum of onehundred dollars for each and every day it shall con-tinue to be in default with respect thereto.

(d) In case of failure or refusal on the part ofany carrier or lessor to accord to the Commission orits duly authorized special agents, accountants, orexaminers, access to, and opportunity for the in-spection and examination of, any lands, buildings, orequipment of said carrier or lessor, as provided inthis section, such carrier or lessor shall forfeit to theUnited States the sum of one hundred dollars foreach day during which such failure or refusalcontinues.

(e) All forfeitures authorized in this paragraphshall be recovered in the manner provided for therecovery of forfeitures under the provisions of thischapter.

(f) Any special agent, accountant, or examinerwho knowingly and willfully divulges any fact orinformation which may come to his knowledge dur-ing the course of any examination or inspection

made under authority of this section, except insofaras he may be directed by the Commission or by acourt or judge thereof, shall be guilty of a misde-meanor and shall be subject, upon conviction in anycourt of the United States of competent jurisdiction,to a fine of not more than $500 or imprisonment fornot exceeding six months, or both.

(8) Definitions.As used in this section the words "keep" and

"kept" shall be construed to mean made, prepared,or compiled, as well as retained; the term "carrier"means a common carrier subject to this chapter,and includes a receiver or trustee of. such carrier;and the term "lessor" means a person owning arailroad, a water line, or a pipe line, leased to andoperated by a common carrier subject to this chap-ter, and includes a receiver or trustee of such lessor.

(9) Jurisdiction to compel compliance by mandamus.The district courts of the United States shall have

jurisdiction, upon the application of the AttorneyGeneral of the United States at the request of thecommission, alleging a failure to comply with or aviolation of any of the provisions of this chapter orof any statutes supplementary thereto or amendatorythereof by any common carrier, to issue a writ orwrits of mandamus commanding such common car-rier to comply with the provisions of this chapter andsaid statutes, or any of them.

(10) Special agents or examiners.And to carry out and give effect to the provisions

of this chapter and said statutes, or any of them,the commission is authorized to employ specialagents or examiners who shall have power to admin-ister oaths, examine witnesses, and receive evidence.

(11) Liability of initial and delivering carrier for loss;limitation of liability; notice and filing of claim.

Any common carrier, railroad, or transportationcompany subject to the provisions of this chapterreceiving property for transportation from a point inone State or Territory or the District of Columbiato a point in another State, Territory, District ofColumbia, or from any point in the United Statesto a point in an adjacent foreign country shall issuea receipt or bill of lading therefor, and shall be liableto the lawful holder thereof for any loss, damage, orinjury to such property caused by it or by any com-mon carrier, railroad, or transportation companyto which such property may be delivered or overwhose line or lines such property may pass withinthe United States or within an adjacent foreigncountry when transported on a through bill of lad-ing, and no contract, receipt, rule, regulation, orother limitation of any character whatsoever shallexempt such common carrier, railroad, or transpor-tation company from the liability hereby imposed;and any such common carrier, railroad, or transpor-tation company so receiving property for transpor-tation from a point in one State, Territory, or theDistrict of Columbia to a point in another State orTerritory, or from a point in a State or Territory toa point in the District of Columbia, or from any pointin the United States to a point in an adjacent foreigncountry, or for transportation wholly within a Ter-ritory, or any common carrier, railroad, or transpor-

Page 5472


tation company delivering said property so receivedand transported shall be liable to the lawful holderof said receipt or bill of lading or to any partyentitled to recover thereon, whether such receipt orbill of lading has been issued or not, for the fullactual loss, damage, or injury to such propertycaused by it or by any such common carrier, rail-road, or transportation company to which suchproperty may be delivered or over whose line or linessuch property may pass within the United Statesor within an adjacent foreign country when trans-ported on a through bill of lading, notwithstandingany limitation of liability or limitation of the amountof recovery or representation or agreement as tovalue in any such receipt or bill of lading, or in anycontract, rule, regulation, or in any tariff filedwith the Interstate Commerce Commission; and anysuch limitation, without respect to the manner orform in which it is sought to be made is declaredto be unlawful and void: Provided, That if the loss,damage, or injury occurs while the property is inthe custody of a carrier by water the liability ofsuch carrier shall be determined by the bill of lad-ing of the carrier by water and by and under thelaws and regulations applicable to transportationby water, and the liability of the initial or deliveringcarrier shall be the same as that of such carrier bywater: Provided, however, That the provisions hereofrespecting liability for full actual loss, damage, orinjury, notwithstanding any limitation of liabilityor recovery or representation or agreement or re-lease as to value, and declaring any such limitationto be unlawful and void, shall not apply, first, tobaggage carried on passenger trains or boats, ortrains or boats carrying passengers; second, to prop-erty, except ordinary livestock, received for trans-portation concerning which the carrier shall havebeen or shall be expressly authorized or required byorder of the Interstate Commerce Commission toestablish and maintain rates dependent upon thevalue declared in writing by the shipper or agreedupon in writing as the released value of the property,in which case such declaration or agreement shallhave no other effect than to limit liability and re-covery to an amount not exceeding the value so de-clared or released, and shall not, so far as relates tovalues, be held to be a violation of section 10 of thistitle; and any tariff schedule which may be filedwith the commission pursuant to such order shallcontain specific reference thereto and may establishrates varying with the value so declared and agreedupon; and the commission is empowered to makesuch order in cases where rates dependent uponand varying with declared or agreed values would,in its opinion, be just and reasonable under thecircumstances and conditions surrounding the trans-portation. The term "ordinary livestock" shallinclude all cattle, swine, sheep, goats, horses, andmules, except such as are chiefly valuable forbreeding, racing, show purposes, or other specialuses: Provided further, That nothing in this sectionshall deprive any holder of such receipt or bill oflading of any remedy or right of action which he hasunder the existing law: Provided further, That allactions brought under and by virtue of this para-

graph against the delivering carrier shall be brought,and may be maintained, if in a district court of theUnited States, only in a district, and if in a Statecourt, only in a State through or into which thedefendant carrier operates a line of railroad: Pro-vided further, That it shall be unlawful for any suchreceiving or delivering common carrier to provideby rule, contract, regulation, or otherwise a shorterperiod for the filing of claims than nine months, andfor the institution of suits than two years, suchperiod for institution of suits to be computed fromthe day when notice in writing is given by the carrierto the claimant that the carrier has disallowed theclaim or any part or parts thereof specified in thenotice: And provided further, That for the purposesof this paragraph and of paragraph (12) of this sec-tion the delivering carrier shall be construed to bethe carrier performing the line-haul service nearestto the point of destination and not a carrier per-forming merely a switching service at the point ofdestination: And provided further, That the liabilityimposed by this paragraph shall also apply in thecase of property reconsigned or diverted in accord-ance with the applicable tariffs filed as in thischapter provided.

(12) Recovery by initial or delivering carrier fromconnecting carrier.

The common carrier, railroad, or transportationcompany issuing such receipt or bill of lading, ordelivering such property so received and transportedshall be entitled to recover from the common carrier,railroad, or transportation company on whose linethe loss, damage, or injury shall have been sustained,the amount of such loss, damage, or injury as it maybe required to pay to the owners of such property, asmay be evidenced by any receipt, judgment, or tran-script thereof. (Feb. 4, 1887, ch. 104, part I, § 20,24 Stat. 386; June 29, 1906, ch. 3591, § 7, 34 Stat.593; Feb. 25, 1909, ch. 193, 35 Stat. 649; June 18, 1910,ch. 309, § 14, 36 Stat. 555; Mar. 4, 1915, ch. 176, § 1,38 Stat. 1196; Aug. 9, 1916, ch. 301, 39 Stat. 441;Feb. 28, 1920, ch. 91, §§ 434-438, 41 Stat. 493, 494;July 3, 1926, ch. 761, 44 Stat. 835; Mar. 4, 1927, ch.510, § 3, 44 Stat. 1448; Apr. 23, 1930, ch. 208, 46 Stat.251; Aug. 9, 1933, ch. 498, § 1, 49 Stat. 543; Sept. 18,1940, ch. 722, title I, § 13, 54 Stat. 916.)

AmENDmENTrs"1940-Pars. (1)-(8) amended as a unit by act Sept.

18, 1940, § 13 (a), cited to text.Par. (11) amended by act Sept. 18, 1940, § 13 (b), cited

to text.CRoss RE1ERqcFs

Common carriers by motor vehicle, application of para-graphs (11) and (12), see section 319 of this title.

Offenses punishable by imprisonment for term exceed-ing one year made felonies, see section 541 of Title 18,Criminal Code and Criminal Procedure.

FEDERAL RULES OF CIVIL PROCEDURE

Application of, see Rule 81, following section 723c ofTitle 28, Judicial Code and Judiciary.

Effect of Rule 81 on this section, see note by AdvisoryCommittee under said Rule 81.

§ 20a. Securities of carriers; issuance, etc-(1) Car-rier defined.

As used in this section the term "carrier" means acommon carrier by railroad (except a street, sub-

Page 5473 § 20a


urban, or interurban electric railway which is notoperated as a part of a general steam railroad sys-tem of transportation) which is subject to this chap-ter, or any corporation organized for the purposeof engaging in transportation by railroad subject tothis chapter.

(2) Issuance of securities; assumption of obligations;authorization.

It shall be unlawful for any carrier to issue anyshare of capital stock or any bond or other evidenceof interest in or indebtedness of the carrier (herein-after in this section collectively termed "securities")or to assume any obligation or liability as lessor,lessee, guarantor, indorser, surety, or otherwise, inrespect of the securities of any other person, naturalor artificial, even though permitted by the authoritycreating the carrier corporation, unless and until,and then only to the extent that, upon applicationby the carrier, and after investigation by the com-

mission of the purposes and uses of the proposed

issue and the proceeds thereof, or of the proposed

assumption of obligation or liability in respect of

the securities of any other person, natural or arti-

ficial, the commission by order authorizes such issue

or assumption. The commission shall make suchorder only if it finds that such issue or assumption:(a) is for some lawful object within its corporatepurposes, and compatible with the public interest,which is necessary or appropriate for or consistent

with the proper performance by the carrier of serv-ice to the public as a common carrier, and whichwill not impair its ability to perform that service,

and (b) is reasonably necessary and appropriate forsuch purpose.

(3) Scope of Commission's authority.The commission shall have power by its order to

grant or deny the application as made, or to grantit in part and deny it in part, or to grant it withsuch modifications and upon such terms and condi-tions as the commission may deem necessary or ap-propriate in the premises, and may from time totime, for good cause shown, make such supplementalorders in the premises as it may deem necessary orappropriate, and may by any such supplemental or-der modify the provisions of any previous order as

to the particular purposes, uses, and extent to which,or the conditions under which, any securities sotheretofore authorized or the proceeds thereof may beapplied, subject always to the requirements of theparagraph (2) of this section.

(4) Form and contents of application; oath and sig-nature.

Every application for authority shall be made insuch form and contain such matters as the com-mission may prescribe. Every such application, asalso every certificate of notification hereinafter pro-vided for, shall be made under oath, signed and filedon behalf of the carrier by its president, a vicepresident, auditor, comptroller, or other executiveofficer having knowledge of the matters therein setforth and duly designated for that purpose by the

carrier.

(5) Disposition of securities described in application,etc.

Whenever any securities set forth and describedin any application for authority or certificate ofnotification as pledged or held unencumbered inthe treasury of the carrier shall, subsequent to thefiling of such application or certificate, be sold,pledged, repledged, or otherwise disposed of by thecarrier, such carrier shall, within ten days aftersuch sale, pledge, repledge, or other disposition, filewith the commission a certificate of notification tothat effect, setting forth therein all such facts asmay be required by the commission.(6) Notice of application to governors of States; in-

tervention; hearings.Upon receipt of any such application for authority

the commission shall cause notice thereof to begiven to and a copy filed with the governor of eachState in which the applicant carrier operates. Therailroad commissions, public service, or utilities com-missions, or other appropriate State authorities ofthe State shall have the right to make before thecommission such representations as they may deemjust and proper for preserving and conserving therights and interests of their people and the States,respectively, involved in such proceedings. Thecommission may hold hearings, if it sees fit, to en-able it to determine its decision upon the applicationfor authority.

(7) Jurisdiction of Commission as exclusive andplenary.

The jurisdiction conferred upon the commissionby this section shall be exclusive and plenary, anda carrier may issue securities and assume obliga-tions or liabilities in accordance with the provisionsof this section without securing approval other thanas specified herein.

(8) Guaranty of securities.Nothing herein shall be construed to imply any

guaranty or obligation as to such securities on thepart of the United States.

(9) Issue of short-term notes; certificate of notifica-tion; proviso.

The foregoing provisions of this section shall notapply to notes to be issued by the carrier maturingnot more than two years after the date thereof andaggregating (together with all other then outstand-ing notes of a maturity of two years or less) notmore than 5 per centum of the par value of thesecurities of the carrier then outstanding. In thecase of securities having no par value, the par valuefor the purposes of this paragraph shall be the fairmarket value as of the date of issue. Within tendays after the making of such notes the carrier issu-ing the same shall file with the commission a certifi-cate of notification, in such form as may from timeto time be determined and prescribed by the com-mission, setting forth as nearly as may be the samematters as those required in respect of applicationsfor authority to issue other securities: Provided,That in any subsequent funding of such notes theprovisions of this section respecting other securitiesshall apply.

§ 20a Page 547/4


(10) Reports by carriers as to securities or proceeds.The commission shall require periodical or special

reports from each carrier issuing any securities, in-cluding such notes, which shall show, in such detailas the commission may require, the disposition madeof such securities and the application of the pro-ceeds thereof.

(11) Securities issued contrary to law void; effect;penalty.

Any security issued or any obligation or liabilityassumed by a carrier, for which under the provi-sions of this section the authorization of the com-mission is required, shall be void, if issued or assumedwithout such authorization therefor having firstbeen obtained, or if issued or assumed contrary toany term or condition of such order of authorizationas modified by any order supplemental thereto en-tered prior to such issuance or assumption; but nosecurity issued or obligation or liability assumed inaccordance with all the terms and conditions of suchan order of authorization therefor as modified byany order supplemental thereto entered prior tosuch issuance or assumption, shall be rendered voidbecause of failure to comply with any provision ofthis section relating to procedure and other matterspreceding the entry of such order of authorization.If any security so made void or any security in re-spect to which the assumption of obligation or lia-bility is so made void, is acquired by any personfor value and in good faith and without notice thatthe Issue or assumption is void, such person may ina suit or action in any court of competent jurisdic-tion hold jointly and severally liable for the fullamount of the damage sustained by him in respectthereof, the carrier which issued the security so madevoid, or assumed the obligation or liability so madevoid, and its directors, officers, attorneys, and otheragents, who participated in any way in the authoriz-ing, issuing, hypothecating, or selling of the securityso made void or in the authorizing of the assumptionof the obligation or liability so made void. In caseany security so made void was directly acquiredfrom the carrier issuing it the holder may at hisoption rescind the transaction and upon the sur-render of the security recover the consideration giventherefor. Any director, officer, attorney, or agent ofthe carrier who knowingly assents to or concurs inany issue of securities or assumptions of obligationor liability forbidden by this section, or any saleor other disposition of securities contrary to theprovisions of the commission's order or orders inthe premises, or any application not authorized bythe commission of the funds derived by the carrierthrough such sale or other disposition of such secu-rities, shall be guilty of a misdemeanor and uponconviction shall be punished by a fine of not lessthan $1,000 nor more than $10,000, or by imprison-ment for not less than one year nor more than threeyears, or by both such fine and imprisonment, inthe discretion of the court.

(12) Restrictions on actions of officers and directors;penalty.

It shall be unlawful for any person to hold theposition of officer or director of more than one car-rier, unless such holding shall have been authorized

by order of the commission, upon due showing, inform and manner prescribed by the commission,that neither public nor private interests will be ad-versely affected thereby. 1t shall be unlawful forany officer or director of any carrier to receive forhis own benefit, directly or indirectly, any money orthing of value in respect of the negotiation, hypothe-cation, or sale of any securities issued or to be issuedby such carrier, or to share in any of the proceedsthereof, or to participate in the making or paying ofany dividends of an operating carrier from any fundsproperly included in capital account. Any violationof these pro visions shall be a misdemeanor, and onconviction ini any United States court having juris-diction shall be punished by a fine of not less than$1,000 nor more than $10,000, or by imprisonment fornot less than one year nor more than three years,or by both such fine and imprisonment, in the dis-cretion of the court. (Feb. 4, 1887, ch. 104, part I,§ 20a as added Feb. 28, 1920, ch. 91, § 439, 41 Stat.494, and amended Aug. 9, 1935, ch. 498, § 1, 49 Stat.543.)

CRoss REFEuNcz

Issue of securities under Railroad Reorganization Actof 1933, see section 205 of Title 11, Bankruptcy.

Motor Carrier Act, application of this section to, seesection 305 (h) of this title.

§ 21. Annual reports of Commission.

The Commission shall, on or before the 3d day ofJanuary of each year, make a report which shall betransmitted to Congress and copies of which shall bedistributed as are the other reports transmitted toCongress. This report shall contain such informa-tion and data collected by the commission as may beconsidered of value in the determination of ques-tions connected with the regulation of commerce, to-gether with such recommendations as to additionallegislation relating thereto as the commission maydeem necessary; and the names and compensationof the persons employed by said commission. (Feb.4, 1887, ch. 104, part I, § 21, 24 Stat. 387; Mar. 2,1889, ch. 382, § 8, 25 Stat. 862; May 23, 1935, ch. 136,49 Stat. 287.)

§ 22. Restrictions.

Nothing in this chapter shall prevent the carriage,storage, or handling of property free or at reducedrates for the United States, State, or municipal gov-ernments, or for charitable purposes, or to or fromfairs and expositions for exhibition thereat, or thefree carriage of destitute and homeless personstransported by charitable societies, and the neces-sary agents employed in such transportation, or thetransportation of persons for the United StatesGovernment free or at reduced rates, or the issu-ance of mileage, excursion, or commutation passen-ger tickets; nothing in this chapter shall be con-strued to prohibit any common carrier from givingreduced rates to ministers of religion, or to munici-pal governments for the transportation of indigentpersons, or to inmates of the National Homes orState Homes for Disabled Volunteer Soldiers and ofSoldiers' and Sailors' Orphan Homes, including thoseabout to enter and those returning home after dis-charge, under arrangements with the boards of

Page 5475


managers of said homes; nothing in this chaptershall be construed to prohibit any common carrierfrom establishing by publication and filing in themanner prescribed in section 6 of this title reducedfares for application to the transportation of (a)personnel of United States armed services or offoreign armed services, when such persons are trav-eling at their own expense, in uniform of thoseservices, and while on official leave, furlough, orpass; or (b) persons discharged, retired, or releasedfrom United States armed services within thirtydays prior to the commencement of such transporta-tion and traveling at their own expense to theirhomes or other prospective places of abode; nothingin this chapter shall be construed to prevent rail-roads from giving free carriage to their own officersand employees, or to prevent the free carriage, stor-age, or handling by a carrier of the household goodsand other personal effects of its own officers oremployees when such goods and effects must neces-sarily be moved from one place to another as aresult of a change in the place of employment ofsuch officers or employees while in the service ofthe carrier, or to prevent the principal officers ofany railroad company or companies from exchang-ing passes or tickets with other railroad companiesfor their officers and employees; and nothing in thischapter contained shall in any way abridge or alterthe remedies now existing at common law or bystatute, but the provisions of this chapter are inaddition to such remedies; nothing in this chaptershall be construed to prohibit any common carrierfrom carrying any totally blind person accompaniedby a guide or seeing-eye dog or other guide dogspecially trained and educated for that purpose atthe usual and ordinary fare charged to one person,under such reasonable regulations as may have beenestablished by the carrier: Provided, That no pend-ing litigation shall in any way be affected by thischapter: Provided further, That nothing in thischapter shall prevent the issuance of joint inter-changeable five-thousand-mile tickets, with specialprivileges as to the amount of free baggage thatmay be carried under mileage tickets of one thou-sand or more miles. But before any common car-rier, subject to the provisions of this chapter, shallissue any such joint interchangeable mileage ticketswith special privileges, as aforesaid, it shall file withthe Interstate Commerce Commission copies of thejoint tariffs of rates, fares, or charges on which suchjoint interchangeable mileage tickets are to be based,together with specifications of the amount of freebaggage permitted to be carried under such tickets,in the same manner as common carriers are requiredto do with regard to other joint rates by section 6of this title; and all the provisions of said sectionrelating to joint rates, fares, and charges shall beobserved by said common carriers and enforced bythe Interstate Commerce Commission as fully withregard to such joint interchangeable mileage ticketsas with regard to other joint rates, fares, and chargesreferred to in said section. It shall be unlawfulfor any common carrier that has issued or author-ized to be issued any such joint interchangeablemileage tickets to demand, collect, or receive fromany person or persons a greater or less compensation

for transportation of persons or baggage under suchjoint interchangeable mileage tickets than that re-quired by the rate, fare, or charge specified in thecopies of the joint tariff of rates, fares, or chargesfiled with the Commission in force at the time. Theprovisions of section 10 of this title shall applyto any violation of the requirements of this proviso.Nothing in this chapter shall prevent any carrier orcarriers subject to this chapter from giving reducedrates for the transportation of property to or fromany section of the country with the object of pro-viding relief in case of earthquake, flood, fire, famine,drought, epidemic, pestilence, or other calamitousvisitation or disaster, if such reduced rates have firstbeen authorized by order of the Commission (withor without a hearing); but in any such order theCommission shall (1) define such section, (2) specifythe period during which such reduced rates are toremain in effect, and (3) clearly define the class orclasses of persons entitled to such reduced rates:Provided, That any such order may define the classor classes entitled to such reduced rates as beingpersons designated as being in distress and in needof relief by agents of the United States or any Stateauthorized to assist in relieving the distress causedby any such calamitous visitation or disaster. Nocarrier subject to the provisions of this chapter shallbe deemed to have violated the provisions of suchchapter with respect to undue or unreasonable pref-erence or unjust discrimination by reason of thefact that such carrier extends such reduced ratesonly to the class or classes of persons defined inthe order of the Commission authorizing such re-duced rates. (Feb. 4, 1887, ch. 104 part I, § 22, 24Stat. 387; Mar. 2, 1889, ch. 382, § 9, 25 Stat. 862;Feb. 8, 1895, ch. 61, 28 Stat. 643; Aug. 18, 1922, ch.280, 42 Stat. 827; Feb. 26, 1927, ch. 217, 44 Stat.1247; Mar. 4, 1927, ch. 510, § 1, 44 Stat. 1446; June27, 1934, ch. 847, title V, § 511, 48 Stat. 1264; Aug.9, 1935, ch. 498, § 1, 49 Stat. 543; July 5, 1937, oh.432, 50 Stat. 475; Aug. 25, 1937, ch. 776, 50 Stat.809; Sept. 18, 1940, ch. 722, title I, § 3, (c-e), 54 Stat.900; Sept. 27, 1R44, ch. 423, 58 Stat. 751.)

REFERENCES IN TEXT

The National Home for Disabled Volunteer Soldiers, towhich reference is made in this section, was abolishedby sections ll-llf of Title 38, Pensions, Bonuses, andVeterans' Relief.

AMENDMENTrS

1944-Act Sept. 27, 1944, cited to text, amended sectionby inserting third clause which reads "nothing in thischapter shall be construed to prohibit any common carrierfrom establishing by publication * * other pros-pective places of abode;".

REPEALSFormer pars. (2) and (3), of this section, relating

to issuance of interchangeable mileage tickets, were re-pealed by act Sept. 18, 1940, § 3 (e), cited to text.

CRoss REFERENCESRates on Government traffic, see section 66 of this

title.

§ 23. Mandamus to obtain equal facilities for shippers.

The district courts of the United States shall havejurisdiction upon the relation of any person or per-

' Section 24 was not used in the Code.

Page 5476


sons, firm, or corporation, alleging such violation bya common carrier, of any of the provisions of thischapter and chapters 8, 12, and 13 of this title, asprevents the relator from having interstate trafficmoved by said common carrier at the same rates asare charged, or upon terms or conditions as favorableas those given by said common carrier for like trafficunder similar conditions to any other shipper, toissue a writ or writs of mandamus against said com-mon carrier, commanding such common carrier tomove and transport the traffic, or to furnish carsor other facilities for transportation for the partyapplying for the writ: Provided, That if any ques-tion of fact as to the proper compensation to thecommon carrier for the service to be enforced by thewrit is raised by the pleadings, the writ of peremp-tory mandamus may issue, notwithstanding suchquestion of fact is undetermined, upon such terms asto security, payment of money into the court, orotherwise, as the court may think proper, pendingthe determination of the question of fact: Provided,That the remedy given by writ of mandamus shallbe cumulative, and shall not be held to excludeor interfere with other remedies provided by thischapter and chapters 8, 12, and 13 of this title.(Feb. 4, 1887, ch. 104, part I, § 23; Mar. 2, 1889, ch.382, § 10, 25 Stat. 862; Mar. 3, 1911, ch. 231, § 291,36 Stat. 1167; May 16, 1942, ch. 318, § 5, 56 Stat. 301.)

CODIFICATION

Section Is from section 10 of act Mar. 2, 1899, cited totext, which was renumbered to be section 23 of the Inter-state Commerce Act of Feb. 4, 1887, by act May 16, 1942,both of which are also cited. Act Mar. 3, 1911, also cited,conferred upon district courts the powers and duties pre-viously conferred upon circuit courts.

Another section 23 was contained in the InterstateCommerce Act as originally enacted by act Feb. 4, 1887,oh. 104, 24 Stat. 387. Such section appropriated fundsfor the fiscal year ending June 30, 1888.

§ 25. Repealed. Sept. 18, 1940, ch. 722, title I, § 14 (a),54 Stat. 919.

Section, act Feb. 4, 1887, ch. 104, § 25, as added by actFeb. 28, 1920, ch. 91, § 441, 41 Stat. 497, and amended byact Apr. 16, 1936, oh. 229, § 10, 49 Stat. 1212, related toschedules and rates of water carriers in foreign commerceand is now covered by section 901 et seq. of this title.

§ 26. Safety appliances, methods, and systems-(a)

Definition of carrier.

The term "carrier" as used in this section in-cludes any carrier by railroad subject to this part(including any terminal or station company), andany receiver or any other individual or body, judicialor otherwise, when in the possession of the businessof a carrier subject to this section: Provided, how-ever, That the term "carrier" shall not include anystreet, interurban, or suburban electric railway un-less such railway is operated as a part of a general

steam-railroad system of transportation, but shallnot exclude any part of a general steam-railroadsystem of transportation now or hereafter operatedby any other motive power.

(b) Order to install systems, etc.; modification; neg-ligence of carrier.

The Commission may, after investigation, if foundnecessary in the public interest, order any carrier

within a time specified in the order, to install the

block signal system, interlocking, automatic trainstop, train control, and/or cab-signal devices, and/orother similar appliances, methods, and systems in-tended to promote the safety of railroad operation,which comply with specifications and requirementsprescribed by the Commission, upon the whole orany part of its railroad such order to be issued andpublished a reasonable time (as determined by the

Commission) in advance of the date for its fulfill-ment: Provided, That block signal systems, inter-

locking, automatic train stop, train control, andcab-signal devices in use on August 26, 1937, orsuch systems or devices hereinafter installed maynot be discontinued or materially modified by car-riers without the approval of the Commission: Pro-vided further, That a carrier shall not be held tobe negligent because of its failure to install such sys-tems, devices, appliances, or methods upon a portionof its railroad not included in the order, and anyaction arising because of an accident occurring uponsuch portion of its railroad shall be determinedwithout consideration of the use of such systems,devices, appliances, or methods upon another portionof its railroad.

(c) Filing report on rules, standards, and instructionswith Commission; time; modification.

Each carrier by railroad shall file with the Com-mission its rules, standards, and instructions for theinstallation, inspection, maintenance, and repairof the systems, devices, and appliances covered bythis section within six months after August 26, 1937,and, after approval by the Commission, such rules,standards, and instructions, with such modificationsas the Commission may require, shall become obliga-tory upon the carrier: Provided, however, That ifany such carrier shall fail to file its rules, standards,and instructions the Commission shall prepare rules,standards, and instructions for the installation, in-spection, maintenance, and repair of such systems,devices, and appliances to be observed by such carrier,which rules, standards, and instructions, a copythereof having been served on the president, chiefoperating officer, trustee, or receiver, of such carrier,shall be obligatory: Provided further, That suchcarrier may from time to time change the rules,

standards, and instructions herein provided for, butsuch change shall not take effect and the new rules,standards, and instructions be enforced until theyshall have been filed with and approved by theCommission: And provided further, That the Com-mission may on its own motion, upon good causeshown, revise, amend, or modify the rules, standards,and instructions prescribed by it under this sub-

section, and as revised, amended, or modified theyshall be obligatory upon the carrier after a copy

thereof shall have been served as above provided.

(d) Inspection by Commission; personnel.The Commission is authorized to inspect and test

any systems, devices, and appliances referred to in

this section used by any such carrier and to deter-mine whether such systems, devices, and appliances

are in proper condition to operate and provide ade-quate safety. For these purposes the Commission is

authorized to employ persons familiar with the sub-

Page 5477


ject. Such persons shall be in the classified serviceand shall be appointed after competitive examinationaccording to the law and the rules of the Civil ServiceCommission governing the classified service. No per-son interested, either directly or indirectly, in anypatented article required to be used on or in connec-tion with any of such systems, devices, and appliancesor who has any financial interest in any carrier or inany concern dealing in railway supplies shall be usedfor such purpose.

(e) Unlawful use of system, etc.It shall be unlawful for any carrier to use or permit

to be used on its line any system, device, or appliancecovered by this section unless such apparatus, withits controlling and operating appurtenances, is inproper condition and safe to operate in the service towhich it is put, so that the same may be used withoutunnecessary peril to life and limb, and unless suchapparatus, with its controlling and operating appur-tenances, has been inspected from time to time inaccordance with the provisions of this section and isable to meet the requirements of such test or testsas may be prescribed in the rules and regulationsprovided for in this section.

(f) Report of failure of system, etc., and accidents.Each carrier shall report to the Commission in such

manner and to such extent as may be required bythe Commission, failures of such systems, devices, orappliances to indicate or function as intended; and incase of accident resulting from failure of any suchsystem, device, or appliance to indicate or functionas intended, and resulting in injury to person orproperty which is reportable under the rules of theCommission, a statement forthwith must be made inwriting of the fact of such accident by the carrierowning or maintaining such system, device, or appli-ance to the Commission; whereupon the facts con-cerning such accident shall be subject to investiga-tion as provided in sections 40-42 of Title 45.

(g) Duties and powers of Commission.It shall be the duty of the Commission to see that

the requirements of this section and the orders, rules,regulations, standards, and instructions made, pre-scribed, or approved hereunder are observed by car-riers. and all powers granted prior to August 26, 1937,to the Commission are extended to it in the execu-tion of this section.

(h) Penalties; enforcement.Any carrier which violates any provision of this

section, or which falls to comply with any of theorders, rules, regulations, standards, or instructionsmade, prescribed, or approved hereunder shall beliable to a penalty of $100 for each such violation and$100 for each and every day such violation, refusal,or neglect continues, to be recovered in a suit or suitsto be brought by the United States attorney in thedistrict court of the United States having jurisdic-tion in the locality where such violations shall havebeen committed. It shall be the duty of such attor-neys to bring such suits upon duly verified informa-tion being lodged with them showing such violationshaving occurred; and it shall be the duty of the Com-mission to lodge with the proper United States attor-neys information of any violations of this section

coming to its knowledge. (Feb. 4, 1887, ch. 104, partI, § 25, added as § 26 by Feb. 28, 1920, ch. 91, § 441,41 Stat. 498, amended Aug. 9, 1935, ch. 498, § 1, 49Stat. 543; Aug. 26, 1937, ch. 818, 50 Stat. 835, renum-bered § 25 by Sept. 18, 1940, ch. 722, title I, § 14 (b),54 Stat. 919.)

§ 27. Short title.

This chapter may be cited as part I of the Inter-state Commerce Act. (Feb. 4, 1887, ch. 104, part I,§ 26, added as § 27 by Feb. 28, 1920, ch. 91, § 441, 41Stat. 499, amended Aug. 9, 1935, ch. 498, § 1, 49 Stat.543, renumbered § 26, and amended by Sept. 18, 1940,ch. 722, title I, § 14 (c), 54 Stat. 919.)

INTERSTATE COMMERCE AcT

The Interstate Commerce Act originally consisted of butone part, set out in this chapter. This section was addedto the original act of Feb. 4, 1887, as section 27 of that actby act of Feb. 28, 1920, and provided that the act (thischapter) might be cited as the "Interstate Commerce Act."A new part, designated part 1H, was added to the originalact by act of Aug. 9, 1935, and set out in this code as chap-ter 8 of this title. The sections in existence prior to Aug.9, 1935, were redesignated part I. Said sections wereamended by the act of Aug. 9, 1935, by substituting forthe words "this act" (translated in this code as "thischapter"), wherever they occurred, the words "this part."Said sections continued to be cited as the "InterstateCommerce Act," part II being cited as the "Motor CarrierAct, 1935." The act of Sept. 18, 1940, amended this sectionby renumbering it as section 26 of the original act andproviding that the sections set out in this chapter mightbe cited as "part I of the Interstate Commerce Act."Section 1 of the act Sept. 18, 1940, amended the InterstateCommerce Act by inserting before part I thereof (thischapter) a provision that chapters 1, 8, and 12 of this title"may be cited as the Interstate Commerce Act."

Parts II and III of the Interstate Commerce Act, seesections 301 et seq. and 901 et seq., respectively, of thistitle.

Part rV of the Interstate Commerce Act, see section 1001et seq. of this title.

Chapter 2.-LEGISLATION SUPPLEMENTARY TO"INTERSTATE COMMERCE ACT"

Sec.41. Liability of corporation carriers and agents; offenses

and penaltids.(1) Liability of corporation common carriers;

offenses; penalties; jurisdiction.(2) Liabilities for acts of agents; departure from

published rates.(3) Receiving rebates; additional penalty and re-

covery thereof.42. Parties included in proceedings to enforce law.43. Proceedings in equity to enforce tariffs, etc.; district

attorneys; damages; witnesses; precedence.44. Expedition of actions by United States involving

general public Importance.45. Appeals to Supreme Court.46. Self-criminating testimony; perjury; refusal to testify.47. Immunity of witness from prosecution; perjury.48. Immunity extended to natural persons only.49. Mandamus to obtain equal facilities for shippers.50. Agent in Washington for service; service in default of

designation.51. Proceedings relating to rail and water routes; orders.52. Railroads to serve employees in valuation work; com-

pensation.53. Exception to law prohibiting free transportation.54. Repealed.55. Policy in making rate adjustments; Investigation of

rates authorized.56. Repealed.57. Auditing accounts of Commission.58. Exchange of typewriters, etc.

Page 5478

united states code: interstate commerce act, part i

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