-CITE-

49 USC CHAPTER 107 - RATES 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

-HEAD-

CHAPTER 107 - RATES

-MISC1-

SUBCHAPTER I - GENERAL AUTHORITY

Sec.

10701. Standards for rates, classifications, through routes,

rules, and practices.

10702. Authority for rail carriers to establish rates,

classifications, rules, and practices.

10703. Authority for rail carriers to establish through

routes.

10704. Authority and criteria: rates, classifications, rules,

and practices prescribed by Board.

10705. Authority: through routes, joint classifications,

rates, and divisions prescribed by Board.

10706. Rate agreements: exemption from antitrust laws.

10707. Determination of market dominance in rail rate

proceedings.

10708. Rail cost adjustment factor.

10709. Contracts.

SUBCHAPTER II - SPECIAL CIRCUMSTANCES

10721. Government traffic.

10722. Car utilization.

SUBCHAPTER III - LIMITATIONS

10741. Prohibitions against discrimination by rail carriers.

10742. Facilities for interchange of traffic.

10743. Liability for payment of rates.

10744. Continuous carriage of freight.

10745. Transportation services or facilities furnished by

shipper.

10746. Demurrage charges.

10747. Designation of certain routes by shippers.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in section 10907 of this title.

-End-

-CITE-

49 USC SUBCHAPTER I - GENERAL AUTHORITY 01/06/03

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TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER I - GENERAL AUTHORITY

-HEAD-

SUBCHAPTER I - GENERAL AUTHORITY

-End-

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49 USC Sec. 10701 01/06/03

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TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER I - GENERAL AUTHORITY

-HEAD-

Sec. 10701. Standards for rates, classifications, through routes,

rules, and practices

-STATUTE-

(a) A through route established by a rail carrier must be

reasonable. Divisions of joint rates by rail carriers must be made

without unreasonable discrimination against a participating carrier

and must be reasonable.

(b) A rail carrier providing transportation subject to the

jurisdiction of the Board under this part may not discriminate in

its rates against a connecting line of another rail carrier

providing transportation subject to the jurisdiction of the Board

under this part or unreasonably discriminate against that line in

the distribution of traffic that is not routed specifically by the

shipper.

(c) Except as provided in subsection (d) of this section and

unless a rate is prohibited by a provision of this part, a rail

carrier providing transportation subject to the jurisdiction of the

Board under this part may establish any rate for transportation or

other service provided by the rail carrier.

(d)(1) If the Board determines, under section 10707 of this

title, that a rail carrier has market dominance over the

transportation to which a particular rate applies, the rate

established by such carrier for such transportation must be

reasonable.

(2) In determining whether a rate established by a rail carrier

is reasonable for purposes of this section, the Board shall give

due consideration to -

(A) the amount of traffic which is transported at revenues

which do not contribute to going concern value and the efforts

made to minimize such traffic;

(B) the amount of traffic which contributes only marginally to

fixed costs and the extent to which, if any, rates on such

traffic can be changed to maximize the revenues from such

traffic; and

(C) the carrier's mix of rail traffic to determine whether one

commodity is paying an unreasonable share of the carrier's

overall revenues,

recognizing the policy of this part that rail carriers shall earn

adequate revenues, as established by the Board under section

10704(a)(2) of this title.

(3) The Board shall, within one year after January 1, 1996,

complete the pending Interstate Commerce Commission non-coal rate

guidelines proceeding to establish a simplified and expedited

method for determining the reasonableness of challenged rail rates

in those cases in which a full stand-alone cost presentation is too

costly, given the value of the case.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 809; amended Pub. L. 104-287, Sec. 5(22), Oct. 11, 1996, 110

Stat. 3390.)

-MISC1-

PRIOR PROVISIONS

Prior sections 10701 and 10701a were omitted in the general

amendment of this subtitle by Pub. L. 104-88, Sec. 102(a).

Section 10701, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1371; Pub.

L. 96-296, Sec. 13(a), July 1, 1980, 94 Stat. 803; Pub. L. 96-448,

title II, Sec. 201(b)(1), (2), Oct. 14, 1980, 94 Stat. 1899, 1900;

Pub. L. 97-261, Sec. 9(a), Sept. 20, 1982, 96 Stat. 1109; Pub. L.

103-180, Sec. 2(a), (b), (g), Dec. 3, 1993, 107 Stat. 2044, 2047,

2049, related to standards for rates, classifications, through

routes, rules, and practices. See sections 10701, 13701, 13709, and

15501 of this title.

Section 10701a, added Pub. L. 96-448, title II, Sec. 201(a), Oct.

14, 1980, 94 Stat. 1898; amended Pub. L. 103-272, Sec. 4(j)(19),

July 5, 1994, 108 Stat. 1369, related to standards for rates for

rail carriers. See section 10701 of this title.

AMENDMENTS

1996 - Subsec. (d)(3). Pub. L. 104-287 substituted "January 1,

1996" for "the effective date of this paragraph".

EFFECTIVE DATE

Chapter effective Jan. 1, 1996, except as otherwise provided in

Pub. L. 104-88, see section 2 of Pub. L. 104-88, set out as a note

under section 701 of this title.

-TRANS-

ABOLITION OF INTERSTATE COMMERCE COMMISSION

Interstate Commerce Commission abolished by section 101 of Pub.

L. 104-88, set out as a note under section 701 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 10704, 10705 of this

title.

-End-

-CITE-

49 USC Sec. 10702 01/06/03

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TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER I - GENERAL AUTHORITY

-HEAD-

Sec. 10702. Authority for rail carriers to establish rates,

classifications, rules, and practices

-STATUTE-

A rail carrier providing transportation or service subject to the

jurisdiction of the Board under this part shall establish

reasonable -

(1) rates, to the extent required by section 10707, divisions

of joint rates, and classifications for transportation and

service it may provide under this part; and

(2) rules and practices on matters related to that

transportation or service.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 810.)

-MISC1-

PRIOR PROVISIONS

A prior section 10702, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1372; Pub. L. 103-180, Sec. 6(a), Dec. 3, 1993, 107 Stat. 2050;

Pub. L. 103-311, title II, Sec. 206(a), Aug. 26, 1994, 108 Stat.

1684, related to authority for carriers to establish rates,

classifications, rules, and practices, prior to the general

amendment of this subtitle by Pub. L. 104-88, Sec. 102(a). See

sections 10702 and 15502 of this title.

-End-

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49 USC Sec. 10703 01/06/03

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TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER I - GENERAL AUTHORITY

-HEAD-

Sec. 10703. Authority for rail carriers to establish through routes

-STATUTE-

Rail carriers providing transportation subject to the

jurisdiction of the Board under this part shall establish through

routes (including physical connections) with each other and with

water carriers providing transportation subject to chapter 137,

shall establish rates and classifications applicable to those

routes, and shall establish rules for their operation and provide -

(1) reasonable facilities for operating the through route; and

(2) reasonable compensation to persons entitled to compensation

for services related to the through route.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 810.)

-MISC1-

PRIOR PROVISIONS

A prior section 10703, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1372; Pub. L. 96-296, Sec. 22(a), (h), July 1, 1980, 94 Stat. 812,

814; Pub. L. 97-449, Sec. 5(g)(5), Jan. 12, 1983, 96 Stat. 2443;

Pub. L. 98-216, Sec. 2(11), Feb. 14, 1984, 98 Stat. 5; Pub. L.

99-521, Sec. 7(a), Oct. 22, 1986, 100 Stat. 2994; Pub. L. 103-272,

Sec. 5(m)(21), July 5, 1994, 108 Stat. 1377, related to authority

for carriers to establish through routes, prior to the general

amendment of this subtitle by Pub. L. 104-88, Sec. 102(a). See

sections 10703 and 13705 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 10705 of this title.

-End-

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49 USC Sec. 10704 01/06/03

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TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER I - GENERAL AUTHORITY

-HEAD-

Sec. 10704. Authority and criteria: rates, classifications, rules,

and practices prescribed by Board

-STATUTE-

(a)(1) When the Board, after a full hearing, decides that a rate

charged or collected by a rail carrier for transportation subject

to the jurisdiction of the Board under this part, or that a

classification, rule, or practice of that carrier, does or will

violate this part, the Board may prescribe the maximum rate,

classification, rule, or practice to be followed. The Board may

order the carrier to stop the violation. When a rate,

classification, rule, or practice is prescribed under this

subsection, the affected carrier may not publish, charge, or

collect a different rate and shall adopt the classification and

observe the rule or practice prescribed by the Board.

(2) The Board shall maintain and revise as necessary standards

and procedures for establishing revenue levels for rail carriers

providing transportation subject to its jurisdiction under this

part that are adequate, under honest, economical, and efficient

management, to cover total operating expenses, including

depreciation and obsolescence, plus a reasonable and economic

profit or return (or both) on capital employed in the business. The

Board shall make an adequate and continuing effort to assist those

carriers in attaining revenue levels prescribed under this

paragraph. Revenue levels established under this paragraph should -

(A) provide a flow of net income plus depreciation adequate to

support prudent capital outlays, assure the repayment of a

reasonable level of debt, permit the raising of needed equity

capital, and cover the effects of inflation; and

(B) attract and retain capital in amounts adequate to provide a

sound transportation system in the United States.

(3) On the basis of the standards and procedures described in

paragraph (2), the Board shall annually determine which rail

carriers are earning adequate revenues.

(b) The Board may begin a proceeding under this section only on

complaint. A complaint under subsection (a) of this section must be

made under section 11701 of this title, but the proceeding may also

be in extension of a complaint pending before the Board.

(c) In a proceeding to challenge the reasonableness of a rate,

the Board shall make its determination as to the reasonableness of

the challenged rate -

(1) within 9 months after the close of the administrative

record if the determination is based upon a stand-alone cost

presentation; or

(2) within 6 months after the close of the administrative

record if the determination is based upon the methodology adopted

by the Board pursuant to section 10701(d)(3).

(d) Within 9 months after January 1, 1996, the Board shall

establish procedures to ensure expeditious handling of challenges

to the reasonableness of railroad rates. The procedures shall

include appropriate measures for avoiding delay in the discovery

and evidentiary phases of such proceedings and exemption or

revocation proceedings, including appropriate sanctions for such

delay, and for ensuring prompt disposition of motions and

interlocutory administrative appeals.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 810; amended Pub. L. 104-287, Sec. 5(23), Oct. 11, 1996, 110

Stat. 3390.)

-MISC1-

PRIOR PROVISIONS

A prior section 10704, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1373; Pub. L. 96-296, Sec. 13(b), July 1, 1980, 94 Stat. 803; Pub.

L. 96-448, title II, Sec. 205(b), Oct. 14, 1980, 94 Stat. 1906;

Pub. L. 97-261, Sec. 9(b), Sept. 20, 1982, 96 Stat. 1109; Pub. L.

99-521, Sec. 7(b), Oct. 22, 1986, 100 Stat. 2994, related to

authority and criteria for rates, classifications, rules, and

practices prescribed by Interstate Commerce Commission, prior to

the general amendment of this subtitle by Pub. L. 104-88, Sec.

102(a). See sections 10704, 13701, and 15503 of this title.

AMENDMENTS

1996 - Subsec. (d). Pub. L. 104-287 substituted "January 1, 1996"

for "the effective date of the ICC Termination Act of 1995".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 10701 of this title.

-End-

-CITE-

49 USC Sec. 10705 01/06/03

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TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER I - GENERAL AUTHORITY

-HEAD-

Sec. 10705. Authority: through routes, joint classifications,

rates, and divisions prescribed by Board

-STATUTE-

(a)(1) The Board may, and shall when it considers it desirable in

the public interest, prescribe through routes, joint

classifications, joint rates, the division of joint rates, and the

conditions under which those routes must be operated, for a rail

carrier providing transportation subject to the jurisdiction of the

Board under this part.

(2) The Board may require a rail carrier to include in a through

route substantially less than the entire length of its railroad and

any intermediate railroad operated with it under common management

or control if that intermediate railroad lies between the terminals

of the through route only when -

(A) required under section 10741, 10742, or 11102 of this

title;

(B) inclusion of those lines would make the through route

unreasonably long when compared with a practicable alternative

through route that could be established; or

(C) the Board decides that the proposed through route is needed

to provide adequate, and more efficient or economic,

transportation.

The Board shall give reasonable preference, subject to this

subsection, to the rail carrier originating the traffic when

prescribing through routes.

(b) The Board shall prescribe the division of joint rates to be

received by a rail carrier providing transportation subject to its

jurisdiction under this part when it decides that a division of

joint rates established by the participating carriers under section

10703 of this title, or under a decision of the Board under

subsection (a) of this section, does or will violate section 10701

of this title.

(c) If a division of a joint rate prescribed under a decision of

the Board is later found to violate section 10701 of this title,

the Board may decide what division would have been reasonable and

order adjustment to be made retroactive to the date the complaint

was filed, the date the order for an investigation was made, or a

later date that the Board decides is justified. The Board may make

a decision under this subsection effective as part of its original

decision.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 811.)

-MISC1-

PRIOR PROVISIONS

Prior sections 10705 and 10705a were omitted in the general

amendment of this subtitle by Pub. L. 104-88, Sec. 102(a).

Section 10705, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1375; Pub.

L. 96-296, Sec. 22(b)-(g), July 1, 1980, 94 Stat. 813; Pub. L.

96-448, title II, Sec. 218, Oct. 14, 1980, 94 Stat. 1925; Pub. L.

97-449, Sec. 5(g)(4), Jan. 12, 1983, 96 Stat. 2443, related to

authority for through routes, joint classifications, rates, and

divisions prescribed by Interstate Commerce Commission. See

sections 10705 and 13701 of this title.

Section 10705a, added Pub. L. 96-448, title II, Sec. 217(a)(1),

Oct. 14, 1980, 94 Stat. 1916; amended Pub. L. 103-272, Sec.

4(j)(20), July 5, 1994, 108 Stat. 1369, related to joint rate

surcharges and cancellations.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 10907 of this title.

-End-

-CITE-

49 USC Sec. 10706 01/06/03

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TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER I - GENERAL AUTHORITY

-HEAD-

Sec. 10706. Rate agreements: exemption from antitrust laws

-STATUTE-

(a)(1) In this subsection -

(A) the term "affiliate" means a person controlling, controlled

by, or under common control or ownership with another person and

"ownership" refers to equity holdings in a business entity of at

least 5 percent;

(B) the term "single-line rate" refers to a rate or allowance

proposed by a single rail carrier that is applicable only over

its line and for which the transportation (exclusive of terminal

services by switching, drayage or other terminal carriers or

agencies) can be provided by that carrier; and

(C) the term "practicably participates in the movement" shall

have such meaning as the Board shall by regulation prescribe.

(2)(A) A rail carrier providing transportation subject to the

jurisdiction of the Board under this part that is a party to an

agreement of at least 2 rail carriers that relates to rates

(including charges between rail carriers and compensation paid or

received for the use of facilities and equipment), classifications,

divisions, or rules related to them, or procedures for joint

consideration, initiation, publication, or establishment of them,

shall apply to the Board for approval of that agreement under this

subsection. The Board shall approve the agreement only when it

finds that the making and carrying out of the agreement will

further the transportation policy of section 10101 of this title

and may require compliance with conditions necessary to make the

agreement further that policy as a condition of its approval. If

the Board approves the agreement, it may be made and carried out

under its terms and under the conditions required by the Board, and

the Sherman Act (15 U.S.C. 1, et seq.), the Clayton Act (15 U.S.C.

12, et seq.), the Federal Trade Commission Act (15 U.S.C. 41, et

seq.), sections 73 and 74 of the Wilson Tariff Act (15 U.S.C. 8 and

9), and the Act of June 19, 1936 (15 U.S.C. 13, 13a, 13b, 21a) do

not apply to parties and other persons with respect to making or

carrying out the agreement. However, the Board may not approve or

continue approval of an agreement when the conditions required by

it are not met or if it does not receive a verified statement under

subparagraph (B) of this paragraph.

(B) The Board may approve an agreement under subparagraph (A) of

this paragraph only when the rail carriers applying for approval

file a verified statement with the Board. Each statement must

specify for each rail carrier that is a party to the agreement -

(i) the name of the carrier;

(ii) the mailing address and telephone number of its

headquarter's office; and

(iii) the names of each of its affiliates and the names,

addresses, and affiliates of each of its officers and directors

and of each person, together with an affiliate, owning or

controlling any debt, equity, or security interest in it having a

value of at least $1,000,000.

(3)(A) An organization established or continued under an

agreement approved under this subsection shall make a final

disposition of a rule or rate docketed with it by the 120th day

after the proposal is docketed. Such an organization may not -

(i) permit a rail carrier to discuss, to participate in

agreements related to, or to vote on single-line rates proposed

by another rail carrier, except that for purposes of general rate

increases and broad changes in rates, classifications, rules, and

practices only, if the Board finds at any time that the

implementation of this clause is not feasible, it may delay or

suspend such implementation in whole or in part;

(ii) permit a rail carrier to discuss, to participate in

agreements related to, or to vote on rates related to a

particular interline movement unless that rail carrier

practicably participates in the movement; or

(iii) if there are interline movements over two or more routes

between the same end points, permit a carrier to discuss, to

participate in agreements related to, or to vote on rates except

with a carrier which forms part of a particular single route. If

the Board finds at any time that the implementation of this

clause is not feasible, it may delay or suspend such

implementation in whole or in part.

(B)(i) In any proceeding in which a party alleges that a rail

carrier voted or agreed on a rate or allowance in violation of this

subsection, that party has the burden of showing that the vote or

agreement occurred. A showing of parallel behavior does not satisfy

that burden by itself.

(ii) In any proceeding in which it is alleged that a carrier was

a party to an agreement, conspiracy, or combination in violation of

a Federal law cited in subsection (a)(2)(A) of this section or of

any similar State law, proof of an agreement, conspiracy, or

combination may not be inferred from evidence that two or more rail

carriers acted together with respect to an interline rate or

related matter and that a party to such action took similar action

with respect to a rate or related matter on another route or

traffic. In any proceeding in which such a violation is alleged,

evidence of a discussion or agreement between or among such rail

carrier and one or more other rail carriers, or of any rate or

other action resulting from such discussion or agreement, shall not

be admissible if the discussion or agreement -

(I) was in accordance with an agreement approved under

paragraph (2) of this subsection; or

(II) concerned an interline movement of the rail carrier, and

the discussion or agreement would not, considered by itself,

violate the laws referred to in the first sentence of this

clause.

In any proceeding before a jury, the court shall determine whether

the requirements of subclause (I) or (II) are satisfied before

allowing the introduction of any such evidence.

(C) An organization described in subparagraph (A) of this

paragraph shall provide that transcripts or sound recordings be

made of all meetings, that records of votes be made, and that such

transcripts or recordings and voting records be submitted to the

Board and made available to other Federal agencies in connection

with their statutory responsibilities over rate bureaus, except

that such material shall be kept confidential and shall not be

subject to disclosure under section 552 of title 5, United States

Code.

(4) Notwithstanding any other provision of this subsection, one

or more rail carriers may enter into an agreement, without

obtaining prior Board approval, that provides solely for

compilation, publication, and other distribution of rates in effect

or to become effective. The Sherman Act (15 U.S.C. 1 et seq.), the

Clayton Act (15 U.S.C. 12 et seq.), the Federal Trade Commission

Act (15 U.S.C. 41 et seq.), sections 73 and 74 of the Wilson Tariff

Act (15 U.S.C. 8 and 9), and the Act of June 19, 1936 (15 U.S.C.

13, 13a, 13b, 21a) shall not apply to parties and other persons

with respect to making or carrying out such agreement. However, the

Board may, upon application or on its own initiative, investigate

whether the parties to such an agreement have exceeded its scope,

and upon a finding that they have, the Board may issue such orders

as are necessary, including an order dissolving the agreement, to

ensure that actions taken pursuant to the agreement are limited as

provided in this paragraph.

(5)(A) Whenever two or more shippers enter into an agreement to

discuss among themselves that relates to the amount of compensation

such shippers propose to be paid by rail carriers providing

transportation subject to the jurisdiction of the Board under this

part, for use by such rail carriers of rolling stock owned or

leased by such shippers, the shippers shall apply to the Board for

approval of that agreement under this paragraph. The Board shall

approve the agreement only when it finds that the making and

carrying out of the agreement will further the transportation

policy set forth in section 10101 of this title and may require

compliance with conditions necessary to make the agreement further

that policy as a condition of approval. If the Board approves the

agreement, it may be made and carried out under its terms and under

the terms required by the Board, and the antitrust laws set forth

in paragraph (2) of this subsection do not apply to parties and

other persons with respect to making or carrying out the agreement.

The Board shall approve or disapprove an agreement under this

paragraph within one year after the date application for approval

of such agreement is made.

(B) If the Board approves an agreement described in subparagraph

(A) of this paragraph and the shippers entering into such agreement

and the rail carriers proposing to use rolling stock owned or

leased by such shippers, under payment by such carriers or under a

published allowance, are unable to agree upon the amount of

compensation to be paid for the use of such rolling stock, any

party directly involved in the negotiations may require that the

matter be settled by submitting the issues in dispute to the Board.

The Board shall render a binding decision, based upon a standard of

reasonableness and after taking into consideration any past

precedents on the subject matter of the negotiations, no later than

90 days after the date of the submission of the dispute to the

Board.

(C) Nothing in this paragraph shall be construed to change the

law in effect prior to October 1, 1980, with respect to the

obligation of rail carriers to utilize rolling stock owned or

leased by shippers.

(b) The Board may require an organization established or

continued under an agreement approved under this section to

maintain records and submit reports. The Board may inspect a record

maintained under this section.

(c) The Board may review an agreement approved under subsection

(a) of this section and shall change the conditions of approval or

terminate it when necessary to comply with the public interest and

subsection (a). The Board shall postpone the effective date of a

change of an agreement under this subsection for whatever period it

determines to be reasonably necessary to avoid unreasonable

hardship.

(d) The Board may begin a proceeding under this section on its

own initiative or on application. Action of the Board under this

section -

(1) approving an agreement;

(2) denying, ending, or changing approval;

(3) prescribing the conditions on which approval is granted; or

(4) changing those conditions,

has effect only as related to application of the antitrust laws

referred to in subsection (a) of this section.

(e)(1) The Federal Trade Commission, in consultation with the

Antitrust Division of the Department of Justice, shall prepare

periodically an assessment of, and shall report to the Board on -

(A) possible anticompetitive features of -

(i) agreements approved or submitted for approval under

subsection (a) of this section; and

(ii) an organization operating under those agreements; and

(B) possible ways to alleviate or end an anticompetitive

feature, effect, or aspect in a manner that will further the

goals of this part and of the transportation policy of section

10101 of this title.

(2) Reports received by the Board under this subsection shall be

published and made available to the public under section 552(a) of

title 5.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 812; amended Pub. L. 104-287, Sec. 5(24), Oct. 11, 1996, 110

Stat. 3390.)

-REFTEXT-

REFERENCES IN TEXT

The Sherman Act, referred to in subsec. (a)(2)(A), (4), is act

July 2, 1890, ch. 647, 26 Stat. 209, as amended, which is

classified to sections 1 to 7 of Title 15, Commerce and Trade. For

complete classification of this Act to the Code, see Short Title

note set out under section 1 of Title 15 and Tables.

The Clayton Act, referred to in subsec. (a)(2)(A), (4), is act

Oct. 15, 1914, ch. 323, 38 Stat. 730, as amended, which is

classified generally to sections 12, 13, 14 to 19, 20, 21, and 22

to 27 of Title 15 and sections 52 and 53 of Title 29, Labor. For

further details and complete classification of this Act to the

Code, see References in Text note set out under section 12 of Title

15 and Tables.

The Federal Trade Commission Act, referred to in subsec.

(a)(2)(A), (4), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, as

amended, which is classified generally to subchapter I (Sec. 41 et

seq.) of chapter 2 of Title 15. For complete classification of this

Act to the Code, see section 58 of Title 15 and Tables.

Sections 73 and 74 of the Wilson Tariff Act, referred to in

subsec. (a)(2)(A), (4), are sections 73 and 74 of act Aug. 27,

1894, ch. 349, 28 Stat. 570, which enacted sections 8 and 9,

respectively, of Title 15.

Act of June 19, 1936, referred to in subsec. (a)(2)(A), (4), is

act June 19, 1936, ch. 592, 49 Stat. 1526, popularly known as the

Robinson-Patman Anti-discrimination Act and also as the

Robinson-Patman Price Discrimination Act, which enacted sections

13a, 13b, and 21a of Title 15 and amended section 13 of Title 15.

For complete classification of this Act to the Code, see Short

Title note set out under section 13 of Title 15 and Tables.

-MISC1-

PRIOR PROVISIONS

A prior section 10706, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1377; Pub. L. 96-258, Sec. 1(7), June 3, 1980, 94 Stat. 426; Pub.

L. 96-296, Sec. 14(a), (c), (d), July 1, 1980, 94 Stat. 803, 808;

Pub. L. 96-448, title II, Sec. 219(a)-(e), 224(b), Oct. 14, 1980,

94 Stat. 1926-1929; Pub. L. 97-261, Sec. 10(a)-(d), Sept. 20, 1982,

96 Stat. 1109, 1110; Pub. L. 98-216, Sec. 2(12), Feb. 14, 1984, 98

Stat. 5; Pub. L. 99-521, Sec. 7(c), Oct. 22, 1986, 100 Stat. 2995,

related to exemption from antitrust laws of rate agreements, prior

to the general amendment of this subtitle by Pub. L. 104-88, Sec.

102(a). See sections 10706 and 13703 of this title.

AMENDMENTS

1996 - Subsec. (a)(5)(C). Pub. L. 104-287 substituted "October 1,

1980," for "the effective date of the Staggers Rail Act of 1980".

-End-

-CITE-

49 USC Sec. 10707 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER I - GENERAL AUTHORITY

-HEAD-

Sec. 10707. Determination of market dominance in rail rate

proceedings

-STATUTE-

(a) In this section, "market dominance" means an absence of

effective competition from other rail carriers or modes of

transportation for the transportation to which a rate applies.

(b) When a rate for transportation by a rail carrier providing

transportation subject to the jurisdiction of the Board under this

part is challenged as being unreasonably high, the Board shall

determine whether the rail carrier proposing the rate has market

dominance over the transportation to which the rate applies. The

Board may make that determination on its own initiative or on

complaint. A finding by the Board that the rail carrier does not

have market dominance is determinative in a proceeding under this

part related to that rate or transportation unless changed or set

aside by the Board or set aside by a court of competent

jurisdiction.

(c) When the Board finds in any proceeding that a rail carrier

proposing or defending a rate for transportation has market

dominance over the transportation to which the rate applies, it may

then determine that rate to be unreasonable if it exceeds a

reasonable maximum for that transportation. However, a finding of

market dominance does not establish a presumption that the proposed

rate exceeds a reasonable maximum.

(d)(1)(A) In making a determination under this section, the Board

shall find that the rail carrier establishing the challenged rate

does not have market dominance over the transportation to which the

rate applies if such rail carrier proves that the rate charged

results in a revenue-variable cost percentage for such

transportation that is less than 180 percent.

(B) For purposes of this section, variable costs for a rail

carrier shall be determined only by using such carrier's unadjusted

costs, calculated using the Uniform Rail Costing System cost

finding methodology (or an alternative methodology adopted by the

Board in lieu thereof) and indexed quarterly to account for current

wage and price levels in the region in which the carrier operates,

with adjustments specified by the Board. A rail carrier may meet

its burden of proof under this subsection by establishing its

variable costs in accordance with this paragraph, but a shipper may

rebut that showing by evidence of such type, and in accordance with

such burden of proof, as the Board shall prescribe.

(2) A finding by the Board that a rate charged by a rail carrier

results in a revenue-variable cost percentage for the

transportation to which the rate applies that is equal to or

greater than 180 percent does not establish a presumption that -

(A) such rail carrier has or does not have market dominance

over such transportation; or

(B) the proposed rate exceeds or does not exceed a reasonable

maximum.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 815.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 10709 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

Prior sections 10707 and 10707a were omitted in the general

amendment of this subtitle by Pub. L. 104-88, Sec. 102(a).

Section 10707, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1380; Pub.

L. 96-448, title II, Sec. 207, Oct. 14, 1980, 94 Stat. 1907; Pub.

L. 103-272, Sec. 4(j)(21), July 5, 1994, 108 Stat. 1369, related to

investigation and suspension of new rail carrier rates,

classifications, rules, and practices.

Section 10707a, added Pub. L. 96-448, title II, Sec. 203(a), Oct.

14, 1980, 94 Stat. 1901; amended Pub. L. 103-272, Sec. 4(j)(22),

July 5, 1994, 108 Stat. 1369, related to zone of rail carrier

flexibility.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 10701, 10702 of this

title.

-End-

-CITE-

49 USC Sec. 10708 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER I - GENERAL AUTHORITY

-HEAD-

Sec. 10708. Rail cost adjustment factor

-STATUTE-

(a) The Board shall, as often as practicable, but in no event

less often than quarterly, publish a rail cost adjustment factor

which shall be a fraction, the numerator of which is the latest

published Index of Railroad Costs (which index shall be compiled or

verified by the Board, with appropriate adjustments to reflect the

change in composition of railroad costs, including the quality and

mix of material and labor) and the denominator of which is the same

index for the fourth quarter of every fifth year, beginning with

the fourth quarter of 1992.

(b) The rail cost adjustment factor published by the Board under

subsection (a) of this section shall take into account changes in

railroad productivity. The Board shall also publish a similar index

that does not take into account changes in railroad productivity.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 816.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 10712 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

A prior section 10708, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1382; Pub. L. 96-296, Sec. 11, July 1, 1980, 94 Stat. 801; Pub. L.

97-261, Secs. 11, 12(a), Sept. 20, 1982, 96 Stat. 1112, 1113; Pub.

L. 99-521, Sec. 7(d), Oct. 22, 1986, 100 Stat. 2995, related to

investigation and suspension of new nonrail carrier rates,

classifications, rules, and practices, prior to the general

amendment of this subtitle by Pub. L. 104-88, Sec. 102(a).

-End-

-CITE-

49 USC Sec. 10709 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER I - GENERAL AUTHORITY

-HEAD-

Sec. 10709. Contracts

-STATUTE-

(a) One or more rail carriers providing transportation subject to

the jurisdiction of the Board under this part may enter into a

contract with one or more purchasers of rail services to provide

specified services under specified rates and conditions.

(b) A party to a contract entered into under this section shall

have no duty in connection with services provided under such

contract other than those duties specified by the terms of the

contract.

(c)(1) A contract that is authorized by this section, and

transportation under such contract, shall not be subject to this

part, and may not be subsequently challenged before the Board or in

any court on the grounds that such contract violates a provision of

this part.

(2) The exclusive remedy for any alleged breach of a contract

entered into under this section shall be an action in an

appropriate State court or United States district court, unless the

parties otherwise agree. This section does not confer original

jurisdiction on the district courts of the United States based on

section 1331 or 1337 of title 28, United States Code.

(d)(1) A summary of each contract for the transportation of

agricultural products (including grain, as defined in section 3 of

the United States Grain Standards Act (7 U.S.C. 75) and products

thereof) entered into under this section shall be filed with the

Board, containing such nonconfidential information as the Board

prescribes. The Board shall publish special rules for such

contracts in order to ensure that the essential terms of the

contract are available to the general public.

(2) Documents, papers, and records (and any copies thereof)

relating to a contract described in subsection (a) shall not be

subject to the mandatory disclosure requirements of section 552 of

title 5.

(e) Any lawful contract between a rail carrier and one or more

purchasers of rail service that was in effect on October 1, 1980,

shall be considered a contract authorized by this section.

(f) A rail carrier that enters into a contract as authorized by

this section remains subject to the common carrier obligation set

forth in section 11101, with respect to rail transportation not

provided under such a contract.

(g)(1) No later than 30 days after the date of filing of a

summary of a contract under this section, the Board may, on

complaint, begin a proceeding to review such contract on the

grounds described in this subsection.

(2)(A) A complaint may be filed under this subsection -

(i) by a shipper on the grounds that such shipper individually

will be harmed because the proposed contract unduly impairs the

ability of the contracting rail carrier or carriers to meet their

common carrier obligations to the complainant under section 11101

of this title; or

(ii) by a port only on the grounds that such port individually

will be harmed because the proposed contract will result in

unreasonable discrimination against such port.

(B) In addition to the grounds for a complaint described in

subparagraph (A) of this paragraph, a complaint may be filed by a

shipper of agricultural commodities on the grounds that such

shipper individually will be harmed because -

(i) the rail carrier has unreasonably discriminated by refusing

to enter into a contract with such shipper for rates and services

for the transportation of the same type of commodity under

similar conditions to the contract at issue, and that shipper was

ready, willing, and able to enter into such a contract at a time

essentially contemporaneous with the period during which the

contract at issue was offered; or

(ii) the proposed contract constitutes a destructive

competitive practice under this part.

In making a determination under clause (ii) of this subparagraph,

the Board shall consider the difference between contract rates and

published single car rates.

(C) For purposes of this paragraph, the term "unreasonable

discrimination" has the same meaning as such term has under section

10741 of this title.

(3)(A) Within 30 days after the date a proceeding is commenced

under paragraph (1) of this subsection, or within such shorter time

period after such date as the Board may establish, the Board shall

determine whether the contract that is the subject of such

proceeding is in violation of this section.

(B) If the Board determines, on the basis of a complaint filed

under paragraph (2)(B)(i) of this subsection, that the grounds for

a complaint described in such paragraph have been established with

respect to a rail carrier, the Board shall, subject to the

provisions of this section, order such rail carrier to provide

rates and service substantially similar to the contract at issue

with such differentials in terms and conditions as are justified by

the evidence.

(h)(1) Any rail carrier may, in accordance with the terms of this

section, enter into contracts for the transportation of

agricultural commodities (including forest products, but not

including wood pulp, wood chips, pulpwood or paper) involving the

utilization of carrier owned or leased equipment not in excess of

40 percent of the capacity of such carrier's owned or leased

equipment by major car type (plain boxcars, covered hopper cars,

gondolas and open top hoppers, coal cars, bulkhead flatcars,

pulpwood rackcars, and flatbed equipment, including TOFC/COFC).

(2) The Board may, on request of a rail carrier or other party or

on its own initiative, grant such relief from the limitations of

paragraph (1) of this subsection as the Board considers

appropriate, if it appears that additional equipment may be made

available without impairing the rail carrier's ability to meet its

common carrier obligations under section 11101 of this title.

(3)(A) This subsection shall cease to be effective after

September 30, 1998.

(B) Before October 1, 1997, the National Grain Car Council and

the Railroad-Shipper Transportation Advisory Council shall make

recommendations to Congress on whether to extend the effectiveness

of or otherwise modify this subsection.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 817; amended Pub. L. 104-287, Sec. 5(24), Oct. 11, 1996, 110

Stat. 3390.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 10713 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

Prior sections 10709 to 10713 were omitted in the general

amendment of this subtitle by Pub. L. 104-88, Sec. 102(a).

Section 10709, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1382; Pub.

L. 96-448, title II, Sec. 202, Oct. 14, 1980, 94 Stat. 1900,

related to determination of market dominance in rail carrier rate

proceedings. See section 10707 of this title.

Section 10710, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1383,

related to elimination of discrimination against recyclable

materials.

Section 10711, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1383,

related to effect of former sections 10701(a), (b), 10707, 10709,

10727, and 10728 of this title on rail rates and practices.

Section 10712, added Pub. L. 96-448, title II, Sec. 206(a), Oct.

14, 1980, 94 Stat. 1906, related to inflation-based rate increases.

Section 10713, added Pub. L. 96-448, title II, Sec. 208(a), Oct.

14, 1980, 94 Stat. 1908; amended Pub. L. 97-468, title V, Sec. 502,

Jan. 14, 1983, 96 Stat. 2552; Pub. L. 99-509, title IV, Sec. 4051,

Oct. 21, 1986, 100 Stat. 1910, related to contracts between rail

carriers and purchasers of rail services. See section 10709 of this

title.

AMENDMENTS

1996 - Subsec. (e). Pub. L. 104-287 substituted "October 1,

1980," for "the effective date of the Staggers Rail Act of 1980".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 10741, 11101, 11904 of

this title.

-End-

-CITE-

49 USC SUBCHAPTER II - SPECIAL CIRCUMSTANCES 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER II - SPECIAL CIRCUMSTANCES

-HEAD-

SUBCHAPTER II - SPECIAL CIRCUMSTANCES

-End-

-CITE-

49 USC Sec. 10721 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER II - SPECIAL CIRCUMSTANCES

-HEAD-

Sec. 10721. Government traffic

-STATUTE-

A rail carrier providing transportation or service for the United

States Government may transport property or individuals for the

United States Government without charge or at a rate reduced from

the applicable commercial rate. Section 3709 of the Revised

Statutes (41 U.S.C. 5) does not apply when transportation for the

United States Government can be obtained from a rail carrier

lawfully operating in the area where the transportation would be

provided.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 819.)

-MISC1-

PRIOR PROVISIONS

A prior section 10721, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1383; Pub. L. 96-454, Sec. 10(b), Oct. 15, 1980, 94 Stat. 2022;

Pub. L. 103-272, Sec. 5(m)(22), July 5, 1994, 108 Stat. 1378,

related to Government traffic, prior to the general amendment of

this subtitle by Pub. L. 104-88, Sec. 102(a). See sections 10721,

13712, and 15504 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 31 section 3726.

-End-

-CITE-

49 USC Sec. 10722 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER II - SPECIAL CIRCUMSTANCES

-HEAD-

Sec. 10722. Car utilization

-STATUTE-

In order to encourage more efficient use of freight cars,

notwithstanding any other provision of this part, rail carriers

shall be permitted to establish premium charges for special

services or special levels of services not otherwise applicable to

the movement. The Board shall facilitate development of such

charges so as to increase the utilization of equipment.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 819.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 10734 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

Prior sections 10722 to 10726 were omitted in the general

amendment of this subtitle by Pub. L. 104-88, Sec. 102(a).

Section 10722, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1384; Pub.

L. 97-261, Sec. 29(a), (b), Sept. 20, 1982, 96 Stat. 1128; Pub. L.

99-521, Sec. 7(e), Oct. 22, 1986, 100 Stat. 2995, related to

special passenger rates.

Section 10723, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1385; Pub.

L. 97-261, Sec. 29(c), Sept. 20, 1982, 96 Stat. 1128; Pub. L.

102-54, Sec. 13(s), June 13, 1991, 105 Stat. 282; Pub. L. 102-240,

title IV, Sec. 4011, Dec. 18, 1991, 105 Stat. 2156, related to

transportation for charitable purposes.

Section 10724, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1386,

related to rates for emergency transportation.

Section 10725, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1387; Pub.

L. 99-521, Sec. 7(f), Oct. 22, 1986, 100 Stat. 2995, related to

special freight forwarder rates.

Section 10726, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1387; Pub.

L. 96-448, title II, Sec. 220, Oct. 14, 1980, 94 Stat. 1928,

related to long and short haul transportation.

A prior section 10727, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1388, authorized the Interstate Commerce Commission to maintain

standards and procedures to permit seasonal, regional, or

peak-period demand rates and required the Commission to submit an

annual report to Congress on implementation of those rates and

recommendations for additional legislation needed to make it easier

to establish those rates, prior to repeal by Pub. L. 96-448, title

II, Sec. 209, title VII, Sec. 710(a), Oct. 14, 1980, 94 Stat. 1910,

1966, effective Oct. 1, 1980.

A prior section 10728, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1388, related to separate rates for distinct rail services, prior

to the general amendment of this subtitle by Pub. L. 104-88, Sec.

102(a).

A prior section 10729, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1389, authorized rail carrier to establish rate, classification,

rule, or practice requiring total capital investment of at least

$1,000,000 to implement upon notice to Interstate Commerce

Commission and opportunity for Commission proceeding and final

decision within 180 days after notice and provided that Commission

could not suspend or set aside any rate that became final for

period of five years but could revise rate to level equal to

variable costs of providing transportation when Commission found

level then in effect reduced going concern of carrier, prior to

repeal by Pub. L. 96-448, title II, Sec. 210(a), title VII, Sec.

710(a), Oct. 14, 1980, 94 Stat. 1910, 1966, effective Oct. 1, 1980.

Prior sections 10730 to 10735 were omitted in the general

amendment of this subtitle by Pub. L. 104-88, Sec. 102(a).

Section 10730, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1389; Pub.

L. 96-296, Sec. 12, July 1, 1980, 94 Stat. 802; Pub. L. 96-448,

title II, Sec. 211(a), (b), Oct. 14, 1980, 94 Stat. 1911; Pub. L.

99-521, Sec. 7(g), Oct. 22, 1986, 100 Stat. 2995, related to rates

and liability based on value.

Section 10731, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1389; Pub.

L. 96-448, title II, Sec. 204, Oct. 14, 1980, 94 Stat. 1905; Pub.

L. 103-272, Sec. 4(j)(23), July 5, 1994, 108 Stat. 1369, related to

investigation of discriminatory rail rates for transportation of

recyclable or recycled materials.

Section 10732, added Pub. L. 96-296, Sec. 8(a), July 1, 1980, 94

Stat. 798; amended Pub. L. 100-690, title IX, Sec. 9113, Nov. 18,

1988, 102 Stat. 4535, related to food and grocery transportation.

See section 13713 of this title.

Section 10733, added Pub. L. 96-296, Sec. 32(a), July 1, 1980, 94

Stat. 824, related to rates for transportation of recyclable

materials.

Section 10734, added Pub. L. 96-448, title II, Sec. 225(a), Oct.

14, 1980, 94 Stat. 1930, related to car utilization. See section

10722 of this title.

Another prior section 10734 was renumbered section 10735 of this

title.

Section 10735, added Pub. L. 96-454, Sec. 4(a), Oct. 15, 1980, 94

Stat. 2012, Sec. 10734; renumbered Sec. 10735, Pub. L. 98-554,

title II, Sec. 227(b)(1), Oct. 30, 1984, 98 Stat. 2852; amended

Pub. L. 103-272, Sec. 5(m)(23), July 5, 1994, 108 Stat. 1378,

related to household goods rates, estimates, and guarantees of

service. See section 13704 of this title.

-End-

-CITE-

49 USC SUBCHAPTER III - LIMITATIONS 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER III - LIMITATIONS

-HEAD-

SUBCHAPTER III - LIMITATIONS

-End-

-CITE-

49 USC Sec. 10741 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER III - LIMITATIONS

-HEAD-

Sec. 10741. Prohibitions against discrimination by rail carriers

-STATUTE-

(a)(1) A rail carrier providing transportation or service subject

to the jurisdiction of the Board under this part may not subject a

person, place, port, or type of traffic to unreasonable

discrimination.

(2) For purposes of this section, a rail carrier engages in

unreasonable discrimination when it charges or receives from a

person a different compensation for a service rendered, or to be

rendered, in transportation the rail carrier may perform under this

part than it charges or receives from another person for performing

a like and contemporaneous service in the transportation of a like

kind of traffic under substantially similar circumstances.

(b) This section shall not apply to -

(1) contracts described in section 10709 of this title;

(2) rail rates applicable to different routes; or

(3) discrimination against the traffic of another carrier

providing transportation by any mode.

(c) Differences between rates, classifications, rules, and

practices of rail carriers do not constitute a violation of this

section if such differences result from different services provided

by rail carriers.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 819.)

-MISC1-

PRIOR PROVISIONS

A prior section 10741, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1390; Pub. L. 96-296, Sec. 33(d), July 1, 1980, 94 Stat. 825; Pub.

L. 96-448, title II, Sec. 212, Oct. 14, 1980, 94 Stat. 1912; Pub.

L. 99-521, Sec. 7(h), Oct. 22, 1986, 100 Stat. 2995, related to

prohibitions against discrimination by common carriers, prior to

the general amendment of this subtitle by Pub. L. 104-88, Sec.

102(a). See sections 10741 and 15505 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 10705, 10709 of this

title.

-End-

-CITE-

49 USC Sec. 10742 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER III - LIMITATIONS

-HEAD-

Sec. 10742. Facilities for interchange of traffic

-STATUTE-

A rail carrier providing transportation subject to the

jurisdiction of the Board under this part shall provide reasonable,

proper, and equal facilities that are within its power to provide

for the interchange of traffic between, and for the receiving,

forwarding, and delivering of passengers and property to and from,

its respective line and a connecting line of another rail carrier

or of a water carrier providing transportation subject to chapter

137.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 819.)

-MISC1-

PRIOR PROVISIONS

A prior section 10742, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1391, related to facilities for interchange of traffic, prior to

the general amendment of this subtitle by Pub. L. 104-88, Sec.

102(a). See sections 10742 and 15506 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 10705 of this title.

-End-

-CITE-

49 USC Sec. 10743 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER III - LIMITATIONS

-HEAD-

Sec. 10743. Liability for payment of rates

-STATUTE-

(a)(1) Liability for payment of rates for transportation for a

shipment of property by a shipper or consignor to a consignee other

than the shipper or consignor, is determined under this subsection

when the transportation is provided by a rail carrier under this

part. When the shipper or consignor instructs the rail carrier

transporting the property to deliver it to a consignee that is an

agent only, not having beneficial title to the property, the

consignee is liable for rates billed at the time of delivery for

which the consignee is otherwise liable, but not for additional

rates that may be found to be due after delivery if the consignee

gives written notice to the delivering carrier before delivery of

the property -

(A) of the agency and absence of beneficial title; and

(B) of the name and address of the beneficial owner of the

property if it is reconsigned or diverted to a place other than

the place specified in the original bill of lading.

(2) When the consignee is liable only for rates billed at the

time of delivery under paragraph (1) of this subsection, the

shipper or consignor, or, if the property is reconsigned or

diverted, the beneficial owner, is liable for those additional

rates regardless of the bill of lading or contract under which the

property was transported. The beneficial owner is liable for all

rates when the property is reconsigned or diverted by an agent but

is refused or abandoned at its ultimate destination if the agent

gave the rail carrier in the reconsignment or diversion order a

notice of agency and the name and address of the beneficial owner.

A consignee giving the rail carrier, and a reconsignor or diverter

giving a rail carrier, erroneous information about the identity of

the beneficial owner of the property is liable for the additional

rates.

(b) Liability for payment of rates for transportation for a

shipment of property by a shipper or consignor, named in the bill

of lading as consignee, is determined under this subsection when

the transportation is provided by a rail carrier under this part.

When the shipper or consignor gives written notice, before delivery

of the property, to the line-haul rail carrier that is to make

ultimate delivery -

(1) to deliver the property to another party identified by the

shipper or consignor as the beneficial owner of the property; and

(2) that delivery is to be made to that party on payment of all

applicable transportation rates;

that party is liable for the rates billed at the time of delivery

and for additional rates that may be found to be due after delivery

if that party does not pay the rates required to be paid under

paragraph (2) of this subsection on delivery. However, if the party

gives written notice to the delivering rail carrier before delivery

that the party is not the beneficial owner of the property and

gives the rail carrier the name and address of the beneficial

owner, then the party is not liable for those additional rates. A

shipper, consignor, or party to whom delivery is made that gives

the delivering rail carrier erroneous information about the

identity of the beneficial owner, is liable for the additional

rates regardless of the bill of lading or contract under which the

property was transported. This subsection does not apply to a

prepaid shipment of property.

(c)(1) A rail carrier may bring an action to enforce liability

under subsection (a) of this section. That rail carrier must bring

the action during the period provided in section 11705(a) of this

title or by the end of the 6th month after final judgment against

it in an action against the consignee, or the beneficial owner

named by the consignee or agent, under that section.

(2) A rail carrier may bring an action to enforce liability under

subsection (b) of this section. That carrier must bring the action

during the period provided in section 11705(a) of this title or by

the end of the 6th month after final judgment against it in an

action against the shipper, consignor, or other party under that

section.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 819.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 10744 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

A prior section 10743, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1391; Pub. L. 99-521, Sec. 7(i), Oct. 22, 1986, 100 Stat. 2995,

related to payment of rates, prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a). See section 13707 of this

title.

-End-

-CITE-

49 USC Sec. 10744 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER III - LIMITATIONS

-HEAD-

Sec. 10744. Continuous carriage of freight

-STATUTE-

A rail carrier providing transportation or service subject to the

jurisdiction of the Board under this part may not enter a

combination or arrangement to prevent the carriage of freight from

being continuous from the place of shipment to the place of

destination whether by change of time schedule, carriage in

different cars, or by other means. The carriage of freight by those

rail carriers is considered to be a continuous carriage from the

place of shipment to the place of destination when a break of bulk,

stoppage, or interruption is not made in good faith for a necessary

purpose, and with the intent of avoiding or unnecessarily

interrupting the continuous carriage or of evading this part.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 821.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 10745 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

A prior section 10744, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1391, related to liability for payment of rates, prior to the

general amendment of this subtitle by Pub. L. 104-88, Sec. 102(a).

See sections 10743 and 13706 of this title.

-End-

-CITE-

49 USC Sec. 10745 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER III - LIMITATIONS

-HEAD-

Sec. 10745. Transportation services or facilities furnished by

shipper

-STATUTE-

A rail carrier providing transportation or service subject to the

jurisdiction of the Board under this part may establish a charge or

allowance for transportation or service for property when the owner

of the property, directly or indirectly, furnishes a service

related to or an instrumentality used in the transportation or

service. The Board may prescribe the maximum reasonable charge or

allowance a rail carrier subject to its jurisdiction may pay for a

service or instrumentality furnished under this section. The Board

may begin a proceeding under this section on its own initiative or

on application.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 821.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 10747 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

A prior section 10745, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1392, related to continuous carriage of freight, prior to the

general amendment of this subtitle by Pub. L. 104-88, Sec. 102(a).

See section 10744 of this title.

-End-

-CITE-

49 USC Sec. 10746 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER III - LIMITATIONS

-HEAD-

Sec. 10746. Demurrage charges

-STATUTE-

A rail carrier providing transportation subject to the

jurisdiction of the Board under this part shall compute demurrage

charges, and establish rules related to those charges, in a way

that fulfills the national needs related to -

(1) freight car use and distribution; and

(2) maintenance of an adequate supply of freight cars to be

available for transportation of property.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 821.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 10750 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

A prior section 10746, Pub. L. 95-473, Oct. 17, 1978, 92 Stat.

1393, related to transportation of commodities manufactured or

produced by rail carrier, prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

-End-

-CITE-

49 USC Sec. 10747 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART A - RAIL

CHAPTER 107 - RATES

SUBCHAPTER III - LIMITATIONS

-HEAD-

Sec. 10747. Designation of certain routes by shippers

-STATUTE-

(a)(1) When a person delivers property to a rail carrier for

transportation subject to the jurisdiction of the Board under this

part, the person may direct the rail carrier to transport the

property over an established through route. When competing rail

lines constitute a part of the route, the person shipping the

property may designate the lines over which the property will be

transported. The designation must be in writing. A rail carrier may

be directed to transport property over a particular through route

when -

(A) there are at least 2 through routes over which the property

could be transported;

(B) a through rate has been established for transportation over

each of those through routes; and

(C) the rail carrier is a party to those routes and rates.

(2) A rail carrier directed to route property transported under

paragraph (1) of this subsection must issue a through bill of

lading containing the routing instructions and transport the

property according to the instructions. When the property is

delivered to a connecting rail carrier, that rail carrier must also

receive and transport it according to the routing instructions and

deliver it to the next succeeding rail carrier or consignee

according to the instructions.

(b) The Board may prescribe exceptions to the authority of a

person to direct the movement of traffic under subsection (a) of

this section.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995, 109

Stat. 821.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 10763 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

Prior sections 10747 to 10751, 10761 to 10767, and 10781 to 10786

were omitted in the general amendment of this subtitle by Pub. L.

104-88, Sec. 102(a).

Section 10747, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1393,

related to transportation services or facilities furnished by

shippers. See section 10745 of this title.

Section 10748, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1393,

related to transportation of livestock by rail carrier.

Section 10749, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1393; Pub.

L. 96-296, Sec. 10(c), July 1, 1980, 94 Stat. 800; Pub. L. 97-468,

title VI, Sec. 615(b)(3), Jan. 14, 1983, 96 Stat. 2578; Pub. L.

98-216, Sec. 2(13), Feb. 14, 1984, 98 Stat. 5; Pub. L. 99-521, Sec.

7(j)(1), (2), Oct. 22, 1986, 100 Stat. 2995; Pub. L. 103-272, Sec.

4(j)(24), July 5, 1994, 108 Stat. 1369, related to exchange of

services and limitation on use of common carriers by household

goods freight forwarders.

Section 10750, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1394,

related to demurrage charges. See section 10746 of this title.

Section 10751, added Pub. L. 96-296, Sec. 33(a), July 1, 1980, 94

Stat. 824; amended Pub. L. 96-448, title II, Sec. 215(a), Oct. 14,

1980, 94 Stat. 1915; Pub. L. 103-272, Sec. 4(j)(25), July 5, 1994,

108 Stat. 1369, related to business entertainment expenses. See

section 14901 of this title.

Section 10761, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1394; Pub.

L. 96-296, Sec. 33(c), July 1, 1980, 94 Stat. 825; Pub. L. 103-311,

title II, Sec. 206(b), Aug. 26, 1994, 108 Stat. 1684, related to

prohibition of transportation without tariff. See section 13702 of

this title.

Section 10762, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1394; Pub.

L. 96-296, Sec. 5(c), July 1, 1980, 94 Stat. 796; Pub. L. 96-448,

title II, Sec. 216, Oct. 14, 1980, 94 Stat. 1915; Pub. L. 97-261,

Sec. 12(b), Sept. 20, 1982, 96 Stat. 1113; Pub. L. 99-521, Sec.

7(k), Oct. 22, 1986, 100 Stat. 2995; Pub. L. 103-180, Sec. 5, Dec.

3, 1993, 107 Stat. 2050; Pub. L. 103-311, title II, Sec.

206(c)-(e), Aug. 26, 1994, 108 Stat. 1684, 1685, related to general

tariff requirements. See sections 13702 and 13710 of this title.

Section 10763, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1396,

related to designation of certain routes by shippers or Interstate

Commerce Commission. See section 10747 of this title.

Section 10764, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1397,

related to arrangements between carriers and required copies of

arrangements to be filed with Commission.

Section 10765, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1397,

related to water transportation under arrangements with certain

other carriers.

Section 10766, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1398; Pub.

L. 96-296, Sec. 10(d), July 1, 1980, 94 Stat. 801; Pub. L. 99-521,

Sec. 7(l), Oct. 22, 1986, 100 Stat. 2995, related to freight

forwarder traffic agreements.

Section 10767, added Pub. L. 103-180, Sec. 7(a), Dec. 3, 1993,

107 Stat. 2051, related to billing and collecting practices. See

section 13708 of this title.

Section 10781, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1398,

related to investigations and reports by Commission on value of

carrier property.

Section 10782, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1399,

related to requirements for establishing value.

Section 10783, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1400,

related to cooperation and assistance of carriers.

Section 10784, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1400; Pub.

L. 96-258, Sec. 1(8), June 3, 1980, 94 Stat. 426, related to

revision of property valuations.

Section 10785, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1401,

related to finality of valuations, notices, protests, and review.

Section 10786, Pub. L. 95-473, Oct. 17, 1978, 92 Stat. 1401,

related to applicability of sections 10781 to 10786 of this title.

-End-