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House Speech Bill 5401, May 6, 1965
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The original documents are located in Box D18, folder "House Speech Bill 5401, May 6,
1965" of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R.
Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. The Council donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
hou Beny sees Bell
Bill 5401 (to House floor today May 6)
cleaning House today w/o
much opposition
result of several year's effort to stop illegal trucking
If grey a rea"
operators.. these reportedly take $1 billion a year in business from
regulated truckers.
Bill will slow down or stop illegal trucking by:
1. Providing enforeeement agreements between federal govt. and
the states.
2. Increase civil forfeiture from $250 to $500
3. Permit persons or companies damaged by "grey area" operations to
take violators into district courts.
FORD if LIBRARY GERALD
(Private Carrier Conference opposes court angle...wants
to continue present method of having ICC control
illegal trucking)
Bill 5401
FYI most farm commodities excempt from regulations, but court decisions
have made a hodge-podge of rules....appears that Congress won't
do anything now...ICC reportedly handling situation in good shape)
STAY AWAY FROM DE-REGULATION OF GRAIN RATES *** VERY CONTROVERSIAL
FORD & LIBRARY OERALD
Digitized from Box D18 of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library
89TH CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
1st Session
No. 253
INTERSTATE COMMERCE ACT AMENDMENTS
APRIL 22, 1965.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. HARRIS, from the Committee on Interstate and Foreign
Commerce, submitted the following
REPORT
[To accompany H.R. 5401]
The Committee on Interstate and Foreign Commerce, to whom
was referred the bill (H.R. 5401) to amend the Interstate Commerce
Act so as to strengthen and improve the national transportation
system, and for other purposes, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu thereof the
following:
That subsection (f) of section 205 of the Interstate Commerce Act (49 U.S.C.
305(f)) is amended by inserting after the second sentence thereof the following
new sentence: "In addition, the Commission is authorized to make cooperative
agreements with the various States to enforce the economic and safety laws and
regulations of the various States and the United States concerning highway
transportation." SEC. 2. Subsection (b) of section 202 of the Interstate Commerce Act (49
U.S.C. 302(b)) is amended by inserting "(1)" immediately after "(b)" and by
adding at the end thereof the following:
"(2) The requirement by a State that any motor carrier operating in interstate
or foreign commerce within the borders of that State register its certificate of
public convenience and necessity or permit issued by the Commission shall not
constitute an undue burden on interstate commerce provided that such registra-
tion is accomplished in accordance with standards, or amendments thereto, de-
termined and officially certified to the Commission by the national organization
of the State commissions, as referred to in section 205(f) of this Act, and promul-
gated by the Commission. As SO certified, such standards, or amendments there-
to, shall be promulgated forthwith by the Commission and shall become effective
five years from the date of such promulgation. As used in this paragraph,
standards or amendments thereto' shall mean specification of forms and pro-
cedures required to evidence the lawfulness of interstate operations of a carrier
within a State by (a) filing and maintaining current records of the certificates
and permits issued by the Commission, (b) registering and identifying vehicles as
operating under such certificates and permits, (c) filing and maintaining evi-
35-006-65-1
2
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
3
dence of currently effective insurance or qualifications as a self-insurer under rules
of injunction or by other process, mandatory or otherwise, restraining such person,
and regulations of the Commission, and (d) filing designations of local agents
his or its officers, agents, employees, and representatives from further violation
for service of process. Different standards may be determined and promulgated
of such section or of such rule, regulation, requirement, or order; and enjoining
for each of the classes of carriers as differences in their operations may warrant.
upon it or them obedience thereto. A copy of any application for relief filed
In determining or amending such standards, the national organization of the State
pursuant to this paragraph shall be served upon the Commission and a certificate
commissions shall consult with the Commission and with representatives of motor
of such service shall appear in such application. The Commission may appear
carriers subject to State registration requirements. To the extent that any
as of right in any such action. The party who or which prevails in any such
State requirements for registration of motor carrier certificates or permits issued
action may, in the discretion of the court, recover reasonable attorney's fees to be
by the Commission impose obligations which are in excess of the standards or
fixed by the court, in addition to any costs allowable under the Federal Rules of
amendments thereto promulgated under this paragraph, such excessive require-
Civil Procedure, and the plaintiff instituting such action shall be required to give
ments shall, on the effective date of such standards, constitute an undue burden
security, in such sum as the court deems proper, to protect the interests of the
on interstate commerce. If the national organization of the State commissions
party or parties against whom any temporary restraining order, temporary injune-
fails to determine and certify to the Commission such standards within eighteen
tive, or other process is issued should it later be proven unwarranted by the facts
months from the effective date of the paragraph, or if that organization at any
and circumstances. Nothing in this paragraph shall be construed to deprive
time determines to withdraw in their entirety standards previously determined
the Commission of its jurisdiction to interpret or construe certificates of public
or promulgated, it shall be the duty of the Commission, within one year there-
convenience and necessity, permits, or rules and regulations issued by the
after, to devise and promulgate such standards, and to review from time to time
Commission."
the standards SO established and make such amendments thereto as it may deem
(b) Subsection (b) of section 417 of the Interstate Commerce Act (49 U.S.C.
necessary, in accordance with the foregoing requirements of this paragraph.
1017(b)) is amended by inserting "(1)" immediately after "(b)" and by adding at
Nothing in this paragraph shall be construed to deprive the Commission, when
the end thereof the following new paragraph:
there is a reasonable question of interpretation or construction, of its jurisdiction
"(2) If any person operates in clear and patent violation of section 410 of this
to interpret or construe certificates of public convenience and necessity, permits,
part, or any rule, regulation, requirement, or order thereunder, any person injured
or rules and regulations issued by the Commission, nor to authorize promulgation
thereby may apply to the district court of the United States for any district where
of standards in conflict with any rule or regulation of the Commission."
such person so violating operates, for the enforcement of such section, or of such
SEC. 3. Subsection (h) of section 222 of the Interstate Commerce Act (49
rule, regulation, requirement, or order. The court shall have jurisdiction to en-
U.S.C. 322(h)) is amended by striking out the words "shall forfeit to the United
force obedience thereto by a writ of injunction or by other process, mandatory
States the sum of $100 for each such offense, and, in case of a continuing violation,
or otherwise, restraining such person, his or its officers, agents, employees, and
not to exceed $50 for each additional day during which such failure or refusal
representatives from further violation of such section or of such rule, regulation,
shall continue" in the first sentence therein and by inserting in lieu thereof the
requirement, or order; and enjoining upon it or them obedience thereto. A copy
following: "or who shall fail or refuse to comply with the provisions of section
of any application for relief filed pursuant to this paragraph shall be served upon
203(c) or section 206(a)(1) or section 209(a)(1) shall forfeit to the United States
the Commission and a certificate of such service shall appear in such application.
not to exceed $500 for each such offense, and, in case of a continuing violation
The Commission may appear as of right in any such action. The party who*or
not to exceed $250 for each additional day during which such failure or refusal
which prevails in any such action may, in the discretion of the court, recover rea-
shall continue."
sonable attorney's fees to be fixed by the court, in addition to any costs allowable
SEC. 4. Subsection (b) of section 222 of the Interstate Commerce Act*(49
under the Federal Rules of Civil Procedure, and the plaintiff instituting such action
U.S.C. 322(b)) is amended to read as follows:
shall be required to give security, in such sum as the court deems proper, to protect
"(b) If any motor carrier or broker operates in violation of any provision" of
the interests of the party or parties against whom any temporary restraining order,
this part (except as to the reasonableness of rates, fares, or charges and the dis-
temporary injunctive or other process is issued should it later be proven unwar-
criminatory character thereof), or any lawful rule, regulation, requirement, or
ranted by the facts and circumstances. Nothing in this paragraph shall be con-
order promulgated by the Commission, or of any term or condition of any cer-
strued to deprive the Commission of its jurisdiction to interpret or construe per-
tificate or permit, the Commission or its duly authorized agent may apply for the
mits or rules and regulations issued by the Commission."
enforcement thereof to the district court of the United States for any district
SEC. 6. (a) Paragraph (2) of section 204a of the Interstate Commerce Act
where such motor carrier or broker operates. In any proceeding instituted under
(49 U.S.C. 304a) is amended to read as follows:
the provisions of this subsection, any person, or persons, acting in concert or
"(2) For recovery of reparations, action at law shall be begun against common
participating with such carrier or broker in the commission of such violation
carriers by motor vehicle subject to this part within two years from the time the
may without regard to his or their residence be included, in addition to the motor
cause of action accrues, and not after, and for recovery of overcharges, action at
carrier or broker, as a party, or parties, to the proceeding. The court shall
law shall be begun against common carriers by motor vehicle subject to this part
have jurisdiction to enforce obedience to any such provision of this part, or of
within three years from the time the cause of action accrues, and not after, subject
such rule, regulation, requirement, order, term, or condition by a writ of injunction
to paragraph (3) of this section, except that if claim for the overcharge has been
or by other process, mandatory or otherwise, restraining such carrier or broker,
presented in writing to the carrier within the three-year period of limitation said
his or its officers, agents, employees, and representatives, and such other person,
period shall be extended to include six months from the time notice in writing is
or persons, acting in concert or participating with such carrier or broker, from
given by the carrier to the claimant of disallowance of the claim, or any part or
further violation of such provision of this part, or of such rule, regulation, require-
parts thereof, specified in the notice."
ment, order, term, or condition and enjoining upon it or them obedience thereto.
(b) Section 204a of the Interstate Commerce Act (49 U.S.C. 304a) is amended
Process in such proceedings may be served upon such motor carrier, or broker,
by redesignating paragraphs (5), (6), and (7) as paragraphs (6), (7), and (8),
or upon such person, or persons, acting in concert or participating therewith in
respectively, and by inserting immediately after paragraph (4) thereof the fol-
the commission of such violation, without regard to the territorial limits of the
lowing:
district or of the State in which the proceeding is instituted."
"(5) The term 'reparations' as used in this section means damages resulting
SEC. 5. (a) Subsection (b) of section 222 of the Interstate Commerce Act (49
from charges for transportation services to the extent that the Commission, upon
U.S.C. 322(b)) (as amended by section 4 of this Act) is further amended by
complaint made as provided in section 216(e) of this part, finds them to have been
inserting "(1)" immediately after "(b)" and by adding at the end thereof the
unjust and unreasonable, or unjustly discriminatory or unduly preferential or
following:
unduly prejudicial."
"(2) If any person operates in clear and patent violation of any provisions of
SEC. 7. (a) Paragraph (2) of section 406a of the Interstate Commerce Act
section 203(c), 206, 209, or 211 of this part, or any rule, regulation, requirement,
(49 U.S.C. 1006a) is amended to read as follows:
or order thereunder, any person injured thereby may apply to the district court
"(2) For recovery of reparations, action at law shall be begun against freight
of the United States for any district where such person SO violating operates, for
forwarders subject to this part within two years from the time the cause of action
the enforcement of such section, or of such rule, regulation, requirement, or
accrues, and not after, and for recovery of overcharges, action at law shall be
order. The court shall have jurisdiction to enforce obedience thereto by a writ
begun against freight forwarders subject to this part within three years from the
4
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
5
time the cause of action accrues, and not after, subject to paragraph (3) of this
section, except that if claim for the overcharge has been presented in writing to the
2. Aid enforcement in the motor carrier field by extending
freight forwarder within the three-year period of limitation said period shall be
(sec. 3) the civil forfeiture provisions of the act and increasing
extended to include six months from the time notice in writing is given by the
the amounts of maximum forfeiture, by assisting (sec. 4) the
freight forwarder to the claimant of disallowance of the claim, or any part or
Commission to obtain service of process, and by permitting
parts thereof, specified in the notice."
(b) Section 406a of the Interstate Commerce Act (49 U.S.C. 1006a) s-amended
(sec. 5) any persons injured through certain violations of certain
by redesignating paragraphs (5), (6), and (7) as paragraphs (6), (7), and (8), re-
operating authority requirements of the act (applicable to
spectively, and by inserting immediately after paragraph (4) thereof the following:
freight forwarders as well) to apply directly to the courts for
"(5) The term 'reparations' as used in this section means damages resulting
injunctive relief.
from charges for transportation services to the extent that the Commission, upon
complaint made as provided in section 406 of this part, finds them to have been
3. Restore a procedure permitting shippers to recover repara-
unjust and unreasonable, or unjustly discriminatory or unduly preferential or
tions from motor carriers (sec. 6) and freight forwarders (sec. 7).
unduly prejudicial."
4. Encourage the development of water transportation upon
SEC. 8. (a) (1) Part III of the Interstate Commerce Act is amended by inserting
inland waterways where no certificate may be in effect by pro-
immediately after section 312 the following new section:
viding (sec. 8) that any water carrier freely without a certificate
"REVOCATION OF CERTIFICATES AND PERMITS
can enter into the transportation of any goods over certain
water routes, though its rates would be subject to regulation.
"SEC. 312a. (1) Certificates and permits shall be effective from the date
specified therein, and shall remain in effect until suspended or revoked as provided
in this section.
BACKGROUND AND NEED FOR LEGISLATION
"(2) Any certificate or permit issued under this part may, upon application of
the holder thereof, in the discretion of the Commission, be amended or revoked,
The instant bill is the culmination of some years' consideration
in whole or in part, or may, upon complaint, or on the Commission's own initia-
by the committee of problems in the surface transportation field
tive, after reasonable notice and opportunity for hearing, be suspended, changed,
or revoked, in whole or in part, for willful failure to engage in, or to continue to
and of various legislative proposals advanced for meeting them.
engage in, the operation authorized by such certificate or permit.
These problems generally seem to stem from the basic fact that
(3) The Commission shall, upon complaint or on its own initiative, after
whereas over the years the Nation's demand for transportation
reasonable notice and opportunity for hearing, in any case of willful failure to
service has steadily grown, since World War II the position of common
engage in any operation authorized by any such certificate for a period of three
or more years (whether occurring before or after the date of enactment of this
carriers in our total national transportation system steadily has
section), revoke the part of such certificate authorizing such operation."
worsened.
(2) The table of contents in section 301 of the Interstate Commerce Act, as
In the first years after the war this fact was evident only in relative
amended (49 U.S.C. 901), is amended by inserting immediately after and below
terms; that is, while all forms of transportation shared in the increased
"Sec. 312. Transfer of certificates and permits."
volume of traffic, common carriers did not participate proportionately
the following:
in this increased total volume. In more recent years it appears that
"Sec, 312a. Revocation of certificates and permits.".
there has been an erosion even in absolute terms in their participation
(b) Section 309 of the Interstate Commerce Act is further amended by adding
in the transportation of total traffic.
at the end thereof the following:
One factor leading to this erosion of traffic in the railroad and
"(h) No person shall be required to obtain a certificate under subsection (a)
in order to perform transportation subject to the provisions of this part over any
motor common carrier fields has been the increase in illegal for-hire
route or routes or between any ports with respect to which no such certificate
trucking; that is, the transportation of nonexempt commodities on
is in effect, and on and after the effective date of this subsection no such certifi-
a for-hire basis by persons not having authority to do SO from the
cates shall be issued to perform such transportation over any route or routes or
Interstate Commerce Commission or a State regulatory commission.
between any ports with respect to which no such certificate is then in effect.
Any person performing such transportation under the provisions of this subsection
This situation has been of continuing concern to the Congress and
shall be deemed to be a common carrier by water for the purposes of this part.
to your committee.
The Commission may not suspend any initial schedule of rates filed by any
It was one of the considerations giving rise to the Transportation
person performing transportation under the provisions of this subsection for
Act of 1958.1 It was commented upon in President Kennedy's
which such person has never had rates on file with the Commission."
SEC. 9. The amendments made by this Act shall take effect on the ninetieth
transportation message in 1962 and the subject of extensive hearings
day after the date of enactment of this Act.
in the 87th Congress in the Senate committee on such proposed
legislation as S. 2560 and in this committee of the House on H.R.
PURPOSE OF THE BILL
11583, H.R. 11584, and other related bills. It was further considered
in the 88th Congress by this committee in its hearings on numerous
The purpose of this bill, H.R. 5401, here reported, is to strengthen
transportation bills, referred to by President Johnson in his letter of
and improve our Nation's common carrier surface transportation
January 1964, and taken up in a bill, H.R. 9903, reported by this
system through amendments to the Interstate Commerce Act to-
committee in February 1964.2
1. Provide for Federal-State cooperation in the motor carrier
Unfortunately illegal for-hire trucking continues to be a significant
field through (sec. 1) agreements for the enforcement of State and
problem today. Authoritative statistics about the scope of such
Federal economic and safety laws and regulations and through
unlawful activities are difficult to obtain, but from enforcement
(sec. 2) establishing standards for the registration within the
1 See H. Rept. 1922, accompanying H.R. 12832, 85th Cong.
several States of Federal certificates and permits.
2 For history between 1958 and 1964 see H. Rept. 1144, accompanying H.R. 9903, 88th Cong.
6
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
7
activity at both Federal and States levels it appears million of tons
criminatory rates. Some proposals have looked toward making the
of freight are hauled illegally every year and such hauls are diverting
procedures identical in the case of all modes of transportation. Other
potential revenues of probably over a billion dollars a year from
proposals suggest return simply to the pre-1959 modified reparations
regulated carriers.
for motor carriers and freight forwarders in view of the potentially
This illegal trucking takes many forms, some being openly per-
large number of claims to which they might be subject owing to the
formed while others are the result of various subterfuges. The record
predominant carriage of small shipments. In 1962, 97 percent, or
sets forth illustrations of the different types, which need not be
230 million, of the total shipments handled by general property motor
detailed here. But the sum of these practices hits hard in the com-
carriers were for less than truckload; while in 1962 the freight for-
petitive rail and motor common carrier fields. Such competition is
warders, dealing almost exclusively in LCL and ITL shipments,
not only illegal but also manifestly unfair since these common carriers
handled 22 million at an average of 400 pounds each.
are required by law to provide transportation to the general public
Vast sums have been and continue to be expended for the develop-
under rules and regulations, enforced by Federal and State agencies,
ment of a comprehensive system of waterways. Water transporta-
that are designed to assure reasonable and nondiscriminatory rates
tion plays, and appropriately should play, an important role in our
and services.
total national transportation network.
Much is being done in the way of enforcement, but more needs to
At present, 268 water carrier certificates and permits issued by the
be done, and more needs to be done in providing better tools for
Commission are still in effect. Of this number, 84, or 31 percent, are
enforcement if enforcement is to be improved.
not being used, 10 of which have been dormant since World War II,
Many States are already working diligently to stop unlawful car-
20 years ago. The Commission testified that it "feels that the public
riage. A 1963 survey shows that 29 States reported prosecution of
interest is not served by allowing water carrier rights to remain in
18,231 cases involving motor carriers operating without proper
effect indefinitely. The mere existence of dormant rights under which
authority, with fines, generally levied against the driver, averaging $68.
operations can be lawfully reactivated at any time acts as a deterrent
Some of the States require some form of registration with them by
to the institution of new operations by other carriers and in some in-
Interstate Commerce Commission authorized motor carriers, but there
stances is a threat to the economic well-being of the transportation
is no uniformity of registration nor of standards required, nor do State
industry."
officers presently have access to Commission information for use in
Clearly it is the intent of the Congress, in the improvement of
court.
waterways for transportation use, that they be used. Those located
The Interstate Commerce Commission in 1963 completed 432 court
on such waterways have a right SO to expect. Those located off such
cases against illegal for-hire carriers, of which 379 were for operating
waterways who are, in part, paying for their improvement, also have
without authority. The courts levied fines averaging some $1,277 for
the same right.
the 383 fines given. These cases show that the violations were not
HEARINGS
just "gypsy" truck operators, since they included 109 shippers, 352
unregulated carriers, 67 regulated carriers, and 50 individuals.
As indicated above, the legislative proposals contained in the bill
Economic violations of the act by these improperly operating
here reported were the subject of extensive hearings and consideration
truckers now must be handled in the courts as criminal cases. There
in the past two Congresses.
are no civil forfeiture procedures applicable to them. Presently also
In this Congress, hearings were conducted by the committee,
they must be handled by the Commission, and that, too, frequently
starting March 23 on H.R. 5401 and 15 other surface transportation
under difficulties of joining all parties in the action as it is evident that
measures which had been recommended by the Interstate Commerce
the trucker cannot operate illegally without the cooperation of a
Commission in its last annual report to the Congress on legislation
shipper, and the latter well may be located in a different territory.
that should be enacted. The bill here reported, H.R. 5401, covers the
There is now no provision where the person suffering damage from this
subjects treated in H.R. 5401 and 4 of the other 15 bills; namely,
illegal operation may himself bring the violator into court.
H.R. 5250, H.R. 5396, H.R. 5398, and H.R. 5869. (Others of these
For years persons who shipped by rail or water carrier have had a
15 bills will be the subject of later committee consideration.)
procedure for securing damages arising from violations of the Inter-
Numerous witnesses testified during the hearings and additional
state Commerce Act either by way of complaint filed against the
statements were filed for the record.
carrier with the Commission or in the courts, while those shipping by
The Interstate Commerce Commission testified in general support
motor carrier or freight forwarder had assumed they had a similar,
of H.R. 5401, although indicating a preference for the treatment of
though more limited, remedy by proceeding against the carrier in the
certain subjects as contained in its own proposed bills. The Depart-
courts. In a 1959 Supreme Court decision this latter procedure was
ment of Commerce, Transportation Association of America, American
taken away, the Court holding that neither the courts nor the Com-
Trucking Associations, and Chamber of Commerce supported H.R.
mission had authority in this area.
5401. The National Association of Motor Bus Operators, Private
The various Presidential messages of 1962, 1963, and 1964, as
Carrier Conference, Private Truck Council, International Brotherhood
well as numerous bills before the committees of both Houses of the
of Teamsters, Chauffeurs, Warehousemen & Helpers, National
Congress, since have urged that the Congress take action to fill this
Council of Farmer Cooperatives, and Freight Forwarders Institute
gap in the protection afforded the shipper from unreasonable or dis-
supported H.R. 5401, with certain suggested amendments. The
National Association of Railroad and Utilities Commissioners and the
INTERSTATE COMMERCE ACT AMENDMENTS
9
8
INTERSTATE COMMERCE ACT AMENDMENTS
In its docket No. 33440, Prevention of Rail-Highway Grade Crossing
National Industrial Traffic League supported sections 1 and 2 of H.R.
Accidents Involving Railway Trains and Motor Vehicles, decided
5401.
January 22, 1964, the Interstate Commerce Commission, as a result
The Association of American Railroads, the American Short Line
of an extensive investigation, found an immediate need to intensify
Railroad Association, and the International Brotherhood of Teamsters,
cooperative action with State authorities to enforce all laws and
Chauffeurs, Warehousemen & Helpers indicated preference for H.R.
regulations in effect at rail-highway grade crossings. This need for
5396 to the comparable provisions of H.R. 5401. The two railroad
intensified cooperative efforts is, however, not limited to the rail-
associations and the National Industrial Conference League indicated
highway grade crossing problem.
preference for H.R. 5869 to the comparable provisions of H.R. 5401.
Your committee feels that enactment of this section (together with
Sea-Land Service, Inc., testified in opposition to H.R. 5250, and
the amendments made by secs. 2, 3, 4, and 5) may be of substan:
the Middle Atlantic Conference filed a statement opposing H.R. 5401
assistance in curbing unlawful operations by persons operating motor
and H.R. 5869.
vehicles for hire without required certificates or permits.
COMMITTEE AMENDMENT
It is the intention of the committee that under section 205(f) of the
Interstate Commerce Act (as amended by this legislation) the Inter-
The committee adopted H.R. 5401 as the vehicle for improving our
state Commerce Commission be empowered to enter into agreements
transportation system for the purposes above set forth; namely, relief
with the States under which information concerning violations of
to our common carriers from illegal and unfair competition through
State laws and regulations which has come to the attention of the
State-Federal cooperation and other aids to enforcement of present
Commission during the course of official examinations or inspections
law, and greater protection and service to the shipping public through
can be communicated to the States, notwithstanding the provisions
providing remedies for violations by motor carriers and freight
of section 222(d).
forwarders and through encouraging the development of water
transportation.
STATE REGISTRATION OF ICC CERTIFICATES
To accomplish these purposes, the committee made several amend-
ments to H.R. 5401 as introduced, as follows:
(Sec. 2, amending sec. 202 of the Interstate Commerce Act)
1. The addition of an amendment to section 2 to take care of
situations where motor carriers may be self-insurers;
Section 2 would amend section 202(b) of the Interstate Commerce
2. The striking of a proviso in sections 3 and 5 relating to the
Act to provide for the establishment of standards for the registration
so-called primary business test (not contained in H.R. 5396) to
within the several States of certificates and permits issued to motor
which the private motor carriers objected without a further
carriers by the Interstate Commerce Commission. Specifically, these
amendment and to which the Commission objected as introduced,
standards would prescribe the forms and procedures required to
and strongly opposed as proposed to be amended; and
evidence the lawfulness of interstate operations of a carrier within a
3. The addition in section 5 of the same type of procedure by
State by (a) filing and maintaining current records of the certificates
individuals injured by persons operating as freight forwarders as.
and permits issued by the Commission; (b) registering and identifying
was provided in the case of motor carriers.
vehicles as operating under such certificates and permits; (c) filing and
The committee further resolved the suggestions as to reparations
maintaining evidence of currently effective insurance or (under an
by adopting sections 6 and 7 of H.R. 5401 rather than the provisions.
amendment adopted by the committee) qualifications as a self-insurer
of H.R. 5869.
under rules and regulations of the Commission; and (d) filing designa-
In addition, the committee incorporated H.R. 5250 as section 8 of
tions of local agents for service of process. To the extent warranted
the bill here reported, with a further amendment pertaining to the
by differences in their operations, different standards for each of the
right of "free entry" into transportation upon waterways where no
classes of carriers would be authorized. Five years following their
certificate is in effect.
promulgation, the standards would go into effect and thereafter, State
requirements in excess of those promulgated would constitute an
DESCRIPTION OF THE COMMITTEE AMENDMENT BY SECTIONS
undue burden on interstate commerce.
The National Association of Railroad and Utilities Commissioners
STATE-FEDERAL COOPERATION
(NARUC) would have the primary and exclusive right to deter-
mine the standards. The Interstate Commerce Commission's func-
(Sec. 1, amending sec. 205 of the Interstate Commerce Act)
tion would be a ministerial one-to "promulgate forthwith" standards
Under section 205(f) of the Interstate Commerce Act, the Com-
determined by NARUC. Precedent for this approach is found in
mission, among other things, is authorized to avail itself of the co-
section 5 of the Safety Appliance Act (45 U.S.C. 5) as interpreted
operation, services, records, and facilities of State authorities in the
by the Supreme Court in St. Louis & Iron Mt. Ry. V. Taylor (210
enforcement or administration of the provisions of part II. This
U.S. 281 (1907)).
section of the committee substitute would amend section 205(f) of the
This section also provides that in the event NARUC fails to de-
termine and certify to the Commission such standards within 18
act so as to specifically authorize the Commission to reciprocate by
entering into cooperative agreements with the States to enforce State
months, or should it withdraw in their entirety standards previously
and Federal economic and safety laws and regulations concerning:
H. Rept. 253, 89-1-2
highway transportation.
10
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
11
determined, the Commission then would be required to prescribe
Since the quantum of proof required in a civil forfeiture proceeding
standards. This section specifically provides that nothing contained
is not as great as that required in a criminal action, a substantial
in it shall be construed (1) to deprive the Commission of its jurisdie-
amount of the time that must now be spent in preparing for criminal
tion with respect to reasonable questions arising in the interpretation
prosecutions in such cases could be devoted to handling a larger num-
or construction of certificates of public convenience or necessity,
ber of cases under the recommended forfeiture procedure.
permits, or rules and regulations issued by the Commission, nor (2)
to authorize promulgation of standards in conflict with any rule or
ENFORCEMENT PROCEEDINGS BY THE COMMISSION
regulation of the Commission.
At present, registration requirements differ widely among the
(Sec. 4, amending sec. 222(b) of the Interstate Commerce Act)
States; and this circumstance alone may impose undue burdens on
Section 4 would amend section 222(b) of the Interstate Commerce
carriers. Therefore, enactment of this legislation is necessary in
Act, which authorizes the Commission to seek injunctive relief in U.S.
order that relief from this multiplicity of different State registration
district courts against unlawful motor carrier or broker operations.
requirements be achieved.
In amending section 222(b), this section would broaden the provisions
thereof SO as to enable the Interstate Commerce Commission to
INCREASE IN CIVIL PENALTIES
obtain service of process upon motor carriers or brokers and to join
(Sec. 3, amending sec. 222(h) of the Interstate Commerce Act)
other necessary parties without regard to where the carrier or other
party may be served. At present, rule 4(f) of the Federal Rules of
Section 3 would amend section 222(h) of the Interstate Commerce
Civil Procedure limits the service of process in such proceedings to
Act so as to extend the civil forfeiture provisions therein to unlawful
the territorial limits of the State in which the court sits.
operations (not involving safety) by motor carriers.
In many instances the carriers against whom it is necessary to seek
In addition, the amount of forfeiture for any offense covered by
injunctions do not hold operating authority from the Commission and
the section would be increased from $100 to $500, and, in the case of a
they, of course, have not designated an agent for the service of process
continuing violation, the maximum forfeiture which could be imposed
as provided in section 221(c) of the Interstate Commerce Act. In
for each additional day in which the offense continued would be
other instances the Commission has been unable to obtain service of
increased from $50 to $250. However, under existing law, the for-
process upon both the carriers and the shipper because they were not
feiture imposed for any offense must be $100, whereas, under the
located within the territorial limits of the same State.
committee amendment, the forfeiture imposed for any offense could
The decision of the court in Interstate Commerce Commission V. Blue
be any amount up to $500, thus allowing the court to relate the
Diamond Products Company (192 F. 2d 43), precludes the Commission
amount of the forfeiture to the gravity of the offense.
from proceeding against a shipper without proceeding against the
Under existing law, procedures for dealing with certain motor carrier
carrier. The amendments made by this section would permit the
violations are often slow and cumbersome, and frequently ineffective.
Commission to institute a civil action against the carrier in any State
Criminal prosecutions, for example, must be brought in the district
in which it operates and to join in such action any shipper, or any
in which the violations occur. Thus, in the case of multiple viola-
other persons participating in the violation, without regard to where
tions by a carrier with extensive territorial operations it may be
the carrier or shipper or such other person may be served.
necessary to institute separate actions in several district courts if all
of the violations are to be covered. Civil forfeiture proceedings, on
ENFORCEMENT PROCEEDINGS BY INJURED PERSONS
the other hand, may be instituted in the district in which the carrier
maintains its principal office, where it is authorized to operate, or
(Sec. 5, amending secs. 222(b) and 417(b) of the Interstate Commerce
where it can be found. Moreover, less time is needed for investigating
Act)
violations because of the difference in quantum of proof required in
such proceedings.
This section adds new paragraphs to sections 222(b) and 417(b)
Under the proposed amendment a civil forfeiture action could be
of the act. The purposes that would be accomplished by these new
brought against a for-hire motor carrier for transporting property
paragraphs are the same. They would provide that any person
without a required certificate or permit. Such action would be
injured by another as a result of operations in clear and patent viola-
available whether or not the carrier had taken steps to give the opera-
tion of certain operating authority requirements of the act (or rules,
tion an appearance of legality, but the principal enforcement advan-
regulations, requirements, or orders thereunder) could apply for in-
tage that would accrue would be when the operator, by means of an
junctive relief directly to the district court of the United States for
alleged vehicle lease or an alleged purchase of the commodity hauled
the district in which the violation occurs. At present, only the
is attempting to give the operation an appearance of private carriage.
Commission may seek injunctive relief for violation of these require-
There are a number of vehicle arrangements in which the facts demon-
ments. (In the case of the amendment to sec. 222(b) of the act
strating their illegality are readily ascertainable. This is also true of
(relating to motor carriers) the operating authority requirements
unlawful operations under the guise of legitimate private carriage
involved are in secs. 203(c), 206, 209, and 211; the operating authority
such as so-called buy and sell operations.
requirements involved in the amendment to sec. 417 of the act
(relating to freight forwarders) are in sec. 410.)
12
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
13
Under the proposed procedure the Commission would be served
with notice of any action for relief and could appear therein as a
Somewhat similar reparations provisions are now in effect in part I
matter of right. In addition, the party that prevailed could, in the
of the act (relating to railroads) and part III of the act (relating to
discretion of the court, recover reasonable attorney's fees together
water carriers).
with costs allowable under the Federal Rules of Civil Procedure. The
party instituting the action would be required to post bond to protect
REVOCATION OF CERTIFICATES AND PERMITS; FREE ENTRY
the interests of the party or parties against whom the injunctive
(Sec. 8, amending sec. 309 and adding a new sec. 312(a) to the-Inter-
relief was sought.
state Commerce Act)
These new provisions are intended to afford injured parties a measure
of self-protection against operations which are openly and obviously
This section would add a new section 312a to part III of the Inter-
unlawful. In each new paragraph the words "clear and patent" are
state Commerce Act and a new subsection (h) to section 309 thereof.
used and are intended as a standard of jurisdiction rather than as a
The proposed new section 312a would permit the Interstate Com-
measure of the required burden of proof. As was stated in the Senate
merce Commission (1) upon application of the holder thereof, to
report on S. 2560, 87th Congress (S. Rept. 1588, 87th Cong., dated
amend or revoke any certificate or permit in whole or in part, or (2)
June 13, 1962), in explanation of an amendment to section 222(b)
upon complaint or on its own initiative, to suspend, change, or revoke
of the act which is identical to that proposed in this legislation:
any certificate or permit in whole or in part, after reasonable notice
No district court is to entertain any action except where
and opportunity for a hearing, for willful failure to engage in or to
the act complained of is openly and obviously for-hire motor
continue to engage in the operation authorized by such certificate or
carriage without authority under the sections enumerated
permit. In addition, the Interstate Commerce Commission would be
above * * The language of the section is designed to
required to revoke that portion of a certificate authorizing any opera-
make it clear that the courts would entertain only those
tion in which there has been a willful failure to engage for 3 or more
suits which involve obvious attempts to circumvent operating
years, but only after reasonable notice and opportunity for a hearing.
regulation.
Subsection (h), which would be added to section 309 of the act by
subsection (b) of this section, would permit free entry, i.e., without
Each of these new paragraphs also provides that nothing contained
the necessity of obtaining a certificate of public convenience and
in them shall be construed to deprive the Interstate Commerce
necessity under section 309(a), into transportation by water subject
Commission of its jurisdiction to interpret or construe permits or
to part III of the act over any route or routes or between ports for
rules and regulations issued by the Commission.
which no certificate is in effect and prohibits the granting of such
REPARATIONS
certificates after the effective date of this legislation for transporta-
tion over any route or routes or between any ports with respect to
(Secs. 6 and 7, amending secs. 204a and 406a of the Interstate
which no such certificate is in effect.
Commerce Act)
The right of "free entry," without need to obtain a certificate,
would obviously be meaningless if the Commission or others were
These sections would amend parts II and IV of the Interstate
able to thwart this right through a long-drawn-out rate proceeding.
Commerce Act, applicable to motor carriers and freight forwarders,
The committee therefore provides in this legislation that the Com-
respectively, so as to permit shippers to recover reparations up to
mission may not suspend any initial schedule filed by a common
2 years after the cause of action therefor arises. Reparations (as
carrier performing transportation under this proposed subsection
defined for purposes of this legislation) are charges made for trans-
(h) for which the carrier never has had rates on file with the Com-
portation in accordance with filed tariffs to the extent that the Inter-
mission. Subsequently, of course, the Commission has the authority,
state Commerce Commission subsequently finds them to have been
as it has in all instances, upon complaint or upon its own initiative,
unjust and unreasonable, or unjustly discriminatory or unduly prefer-
to open up a proceeding for the determination of the reasonableness
ential or unduly prejudicial.
or nondiscriminatory character of the rates. It cannot, however,
In effect, these sections would permit a court of competent jurisdic-
prevent a carrier from entering into the business through suspension
tion to award reparations to persons injured through violations of the
of one carrier's initial rates.
Interstate Commerce Act by motor carriers and freight forwarders
Taken together, this new section and subsection would permit
subject thereto. This would be accomplished in accordance with
domestic water carriers to give common carrier service on those
established judicial reference procedures under which the Commission
waterways where no such service is now provided for by certification
would be called upon to aid the court by making necessary administra-
by permitting water carriers to give such service without being re-
tive determinations relating to the amount of reparations. This would
quired to go to the trouble of obtaining a certificate of public con-
restore a procedure formerly available to shippers which was set aside
venience and necessity. Where there is such certification but the
by the Supreme Court in 1959 by its decision in the T.I.M.E. case
common carrier willfully fails to provide the contemplated service,
(359 U.S. 464) and would not affect in any way the right of shippers
his certificate could be revoked. And where such willful failure con-
to recover damages for misrouting under the Hewitt-Robins doctrine.
tinues for 3 or more years, this section would require the Commission
(See Hewitt-Robins Incorporated V. Eastern Freight-Ways, Inc.,
to revoke the certificate involved. It is the intention of the committee
371 U.S. 84 (1962).)
14
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
15
that the holder of a certificate should "use it or lose it." That is, he
operation an appearance of legality, but the principal enforcement
should provide the transportation or lose the right to do SO.
advantage that would accrue would be when the operator, by means of
The committee is aware, however, that once the carrier loses his
an alleged vehicle lease or an alleged purchase of the commodity
certificate because of nonuse, the carrier may experience difficulty in
hauled, has attempted to give the operation an appearance of private
having it restored. The record of the Commission in granting certifi-
carriage. More specifically, an owner of a vehicle may enter into a
cates is such that the committee is not optimistic about the Commis-
vehicle lease arrangement with a manufacturer under which the manu-
sion seeing to it that the waterways are fully utilized. Thus, on new
facturer allegedly uses the vehicle in private carrier operations. Such
or newly developed waterways or on other waterways where there is
arrangments range all the way from a bona fide lease of a vehicle, at
no certificate holder, the bill makes it possible for anyone to provide
one extreme, to an obvious sham at the other. No enforcement action
transportation service by water without the necessity of obtaining a
is, of course, involved in the case of a bona fide lease. The obvious
certificate, although he would be subject to rate regulation.
shams, however, are the subject of criminal prosecution.
While there are a number of vehicle arrangements which the Com-
SECTION 9. EFFECTIVE DATE
mission believes to be illegal for-hire carriage by the vehicle owner,
it is doubtful that a criminal conviction could be secured because of
This legislation would take effect on the 90th day after its en-
the necessity of showing knowledge and willfulness and proving guilt
actment.
beyond a reasonable doubt. In addition, in a criminal proceeding
AGENCY REPORTS
there can be no appeal from an acquittal. Such cases are now
handled in the civil courts, but an injunction against such operations
INTERSTATE COMMERCE COMMISSION,
in the future is all that can be secured. The possibility of a civil
Washington, D.C., March 29, 1965.
injunction action, where there is no pecuniary penalty or criminal
Hon. OREN HARRIS,
stigma involved, has very little effect as a deterrent to would-be
Chairman, Committee on Interstate and Foreign Commerce,
violators. A civil forfeiture action, such as that proposed, carrying
House of Representatives,
with it substantial monetary penalties should, on the other hand,
Washington, D.C.
have a strong deterrent effect against questionable leasing arrange-
DEAR CHAIRMAN HARRIS: In response to your request for additional
ments.
comments on the bill, H.R. 5396, introduced by you, which would
Operations sometimes referred to as "buy and sell" operations are
give effect to legislative recommendation No. 22, in the Commission's
very similar in effect. By allegedly purchasing merchandise the
78th Annual Report, I enclose a statement of justification for this bill.
transporter represents the operation to be private carriage. As in
Sincerely yours,
the case of leasing arrangements these operations have many varia-
CHARLES A. WEBB, Chairman.
tions, some of which present close questions as to whether the opera-
tion constitutes for-hire carriage. Some are obviously illegal for-hire
JUSTIFICATION
operations and are handled as criminal cases. Others, however, are
not so clearly unlawful as to warrant criminal action for the reasons
The purpose of H.R. 5396 is to provide the Interstate Commerce
Commission with a more effective means of coping with the spread
stated above in connection with questionable leasing arrangements,
but which, in the Commission's views, are nevertheless unlawful.
of illegal and so-called gray area motor carrier operations which are
Such operations may be continued for substantial periods during the
undermining the strength of the Nation's regulated common carrier
pendency of a civil injunction proceeding and before a cease and desist
system. It is also designed to buttress the Commission's intensified
order is issued by the court. If the proposed amendment were enacted
motor carrier safety enforcement program.
a number of these cases could be made the subject of a civil forfeiture
Under existing law, procedures for dealing with certain motor
carrier violations are often slow and cumbersome, and frequently
action in which, if successful, the operator would suffer a money
judgment or forfeiture.
ineffective. Criminal prosecutions, for example, must be brought in
Enactment of H.R. 5396 would also greatly facilitate the Commis-
the district in which the violations occurred. Thus, in the case of
sion's enforcement activities in the important area of motor carrier
multiple violations by a carrier with extensive territorial operations
safety. Although a very high percentage of cases involving violations
it may be necessary to institute separate actions in several district
of the Commission's safety regulations are disposed by of pleas of
courts if all of the violations are to be covered. Civil forfeiture
guilty or nolo contendere, investigations looking toward such prosecu-
proceedings, on the other hand, may be instituted in the district in
tions are nevertheless extremely time consuming because of the
which the carrier maintains its principal office, where it is authorized
necessity of proving to the court every element of the alleged criminal
to operate, or where it can be found. Moreover, less time is needed
offense. Since the quantum of proof required in a civil forfeiture
for investigating violations because of the difference in quantum of
proceeding is not as great as that required in a criminal action, a
proof required in such proceedings.
substantial amount of the time that must now be spent in preparing
Under the proposed amendment a civil forfeiture action could be
for criminal prosecutions in such cases could be devoted to handling
brought against a for-hire motor carrier for transporting property
a larger number of civil forfeiture proceedings.
without a required certificate or permit. Such action would be
The Commission's efforts at more effective and expeditious enforce-
available whether or not the carrier had taken steps to give the
ment would also be greatly enhanced if it were authorized to institute
16
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
17
forfeiture proceedings directly in the courts instead of proceeding
participating in further violation of the law or the Commission's rules
through the Department of Justice as it is now required to do. Delays
and regulations thereunder. In some instances, however, the Com-
would be avoided not only by eliminating the mechanics involved in
mission has been unable to obtain service of process upon both the
taking the extra step, but also by the elimination of such delays as
carriers and the shipper because they were not located within the
may be caused by the time consumed in convincing the U.S. attorney
territorial limits of the same State.
that an action should be filed.
The decision of the court in Interstate Commerce Commission V.
These proposed amendments, coupled with a substantial increase
Blue Diamond Products Company, 192 F. 2d 43, precludes tRe Commis-
in the amount of the forfeitures prescribed, would strengthen the
sion from proceeding against a shipper without proceeding against
Commission's hand considerably in dealing with some of the principal
the carrier. The Commission does not disagree with the principle of
factors contributing to the decline of regulated common carriers.
that case. However, it is of the view, and H.R. 5398 would so provide,
that it should be able to institute a civil action against a carrier in any
State in which the carrier operates and to join in such action any
INTERSTATE COMMERCE COMMISSION,
shipper, or any other person participating in the violation, without
Washington, D.C., March 29, 1965.
regard to where the carrier or the shipper or such other person may be
served.
Hon. OREN HARRIS,
Chairman, Committee on Interstate and Foreign Commerce,
The problem presented has been particularly troublesome in the
House of Representatives, Washington, D.C.
efforts of the Commission to control so-called pseudo private carriage,
DEAR CHAIRMAN HARRIS: In response to your request for addi-
i.e., for-hire carriers claiming, without basis, to be engaged in private
tional comments on the bill, H.R. 5398, introduced by you, which
transportation for the purpose of evading the economic regulation
would give effect to legislative recommendation No. 21, in the Com-
to which common and contract carriers are subject. The seriousness
mission's 78th Annual Report, I enclose a statement of justification
of these unlawful operations was recognized by the Congress when,
as a part of the Transportation Act of 1958, it amended section 203(c)
for this bill.
of the Interstate Commerce Act so as to more clearly define what
Sincerely yours,
CHARLES A. WEBB, Chairman..
constitutes bona fide private carriage. However, because of the
inability of the Commission, under present law, to get both the respon-
JUSTIFICATION
sible shipper and the carrier before the court, its efforts at effective
enforcement is, in many cases, thwarted.
H.R. 5398 would provide the Interstate Commerce Commission
The proposed amendment would make more effective the original
with a more effective means of enforcing the motor carrier provisions.
intent of the Congress in enacting section 222(b) and would aid the
of the Interstate Commerce Act.
Commission substantially in its efforts to administer and enforce the
Under section 222(b) of the act the Commission is authorized to
act.
institute proceedings to enjoin unlawful motor carrier or broker
In order to make the provisions of section 222(b) harmonize with
operations or practices in the U.S. district court of any district in
changes recommended by the Commission in section 212(a) of the act
which the carrier or broker operates. Rule 4(f) of the Federal Rules.
(see legislative recommendation No. 25, 78th annual report), H.R.
of Civil Procedure, however, limits the service of process in such
5398 further provides that section 222(b) shall apply to any lawful
proceedings to the territorial limits of the State in which the court sits.
rule, regulation, requirement, or order promulgated by the Com-
In many instances the carriers against whom it is necessary to seek.
mission. At present, the pertinent provision of section 222(b)
injunctions do not hold operating authority from the Commission
refers only to rules, regulations, requirements, or orders promulgated
and they have not, of course, designated an agent for the service of
under part II of the act.
process as provided in section 221(c) of the act. The operations of
such carriers are frequently widespread and it is often desirable to.
institute the court action in the State where most of their services.
COMPTROLLER GENERAL OF THE UNITED STATES,
are performed. This is usually the most convenient place for the
Washington, D.C., March 29, 1965.
B-120670.
majority of persons involved, including necessary witnesses. The
illegal operator, himself, however, may avoid service of process by
Hon. OREN HARRIS,
remaining outside of the State and by not stationing within its borders.
Chairman, Committee on Interstate and Foreign Commerce,
anyone qualified to receive service on his behalf.
House of Representatives.
Coping with the problem of unlawful operations is further compli-
DEAR MR. CHAIRMAN: We refer to your letter of March 12, 1965,
cated when a large shipper is involved. An injunction against one or
in which you ask for our comments on H.R. 5869.
several relatively small carriers without the shipper being named
This bill proposes to amend sections 204a and 406a of the Inter-
permits the shipper to continue his unlawful activities by using individ-
state Commerce Act, 49 U.C.S.A. 304a and 1006a, by subjecting
ual truckers or small carriers against whom no previous action has
common carriers by motor vehicle and freight forwarders to civil
been taken.. It is therefore frequently desirable and often critically
liability for violations of the act. It has been included in the legis-
important, that such shipper, as well as the carriers, be enjoined from
lative program of the Interstate Commerce Commission for some
H. Rept. 253, 89-1-3
18
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
19
years (see, for example, legislative recommendation No. 15, in its
obtains, and Government, as well as private, shippers have no way to
78th annual report, p. 70), and similar proposals have been introduced
recoup such unlawful excess payments to motor common carriers.
in the 86th, 87th, and 88th Congresses, culminating with the provisions
In an effort to help conserve appropriated funds, when in our
of sections 4 and 5 of H.R. 9903, 88th Congress, which was favorably
audit we find instances of apparent unreasonable charges by motor
reported by your committee. In our letter of March 29, 1963,
common carriers, we have been notifying the interested department or
B-120670, we commented on a similar bill, H.R. 2594, 88th Congress,
agency of the facts involved and recommended that appropriate action
and strongly recommended its favorable consideration by your
be taken to protect the Government's interests, as by initiating pro-
committee. During June 1961, the Subcommittee on Transportation
ceedings in the Interstate Commerce Commission to obtain orders
and Aeronautics of your committee held hearings on a similar legis-
declaring certain rates or practices to be unreasonable for the future.
lative proposal in H.R. 5596, 87th Congress, at which a witness
It is part of our audit program to segregate certain cases as examples of
from our Office testified in support of the bill. We still believe that
particular possible unlawful motor carrier tariff situations and to
there is need for this type of legislation.
suggest to the interested Government agency that action be taken with
Motor common carriers and freight forwarders operating in inter-
the object of saving the Government transportation costs in the future.
state commerce, unlike common carriers by rail and water, from the
There are about five continuing major motor carrier tariff situations
inception of Federal regulation have been free from any statutory
resulting in the assessment of legal (tariff) charges which we believe
requirement to respond in damages to shippers suffering injury from
are unreasonable and therefore unlawful. They include tariffs naming
violations of the Interstate Commerce Act. However, when the Inter-
high minimum charges for the transportation of less-truckload ship-
state Commerce Commission commenced to function in the area of
ments of some types of explosives; tariffs naming charges for the ex-
motor carrier regulation, it considered that a common law remedy for
clusive use of a vehicle which apply despite the fact that the vehicle
the exaction of unjust and unreasonable charges had survived the
used is loaded to capacity (see Campbell "66" Express Company, Inc.
passage of the Motor Carrier Act of 1935 (pt. II of the Interstate
V. United States, 302 F. 2d 27 (1962), and Curtis Lighting Company,
Commerce Act), and that it was enforceable in any court of competent
Inc. V. Mid-States Freight Lines, Inc., 303 I.C.C. 576 (1958)); tariffs
jurisdiction; the Commission held that its jurisdiction extended to the
containing capacity load minimum charge rules, held to be potentially
determination of the reasonableness of past motor carrier rates and
discriminatory by the Interstate Commerce Commission in Overflow
charges ancillary to a court action to enforce the common law remedy.
and Minimum Charge Rule, Summit Fast Freight, 61 M.C.C. 163
This doctrine, expounded in an early case, Bell Potato Chip Co. V.
(1952); the absence in tariffs of an aggregate of intermediates rule-
Aberdeen Truck Line, 43 M.C.C. 337 (1944), was followed by the
the situation described in the T.I.M.E. suit; and the maintenance in
Federal courts as well as the Commission until May 18, 1959, when
tariffs of exceptions ratings which are higher than classification rat-
the U.S. Supreme Court decided T.I.M.E., Inc. V. United States, 359
ings, a situation considered by the Interstate Commerce Commission
U.S. 464. In that case, the Court seemed to void the Bell Potato
to be anomalous and requiring special justification-see, for example,
Chip Co. case doctrine by concluding that there was no common law
Glass Exceptions Rating Between Middle Atlantic Points, 314 I.C.C.
remedy preserved by the Motor Carrier Act which would permit a
450 (1961).
shipper to challenge in postshipment litigation the reasonableness of
The legally applicable charges allowable in the above-described
the rates charged in accordance with a carrier's filed tariffs. As a
types of cases produce the elements of unreasonable rate situations
result of the T.I.M.E. decision, the United States and other shippers
which, prior to the T.I.M.E. case, could have been made the subject
via motor common carrier find themselves without any forum in
of an action before the Interstate Commerce Commission for the
which to seek and obtain damages flowing from a motor carrier's
determination of the reasonable charge basis as a predicate for judicial
collection of unlawful charges as defined in the Interstate Commerce
proceedings to obtain the reparations due the shipper. The T.I.M.E.
Act.
case precludes action by the Government to obtain adjustment of
The United States, as the largest user of transportation services,
such charges on past shipments to a reasonable basis. However, we
purchases a considerable segment of its transportation requirements
have recently cooperated with the Department of Defense in com-
from motor common carriers. Payment for this transportation is
plaint proceedings undertaken in the Interstate Commerce Commis-
made upon presentation of bills therefor in accordance with section
sion seeking prospective adjustments in certain motor carrier tariff
322 of the Transportation Act of 1940, as amended, 49 U.S.C.A. 66,
provisions alleged to be unlawful. And we have assisted the Depart-
without prior audit by the General Accounting Office as to the correct-
ment of Justice and the General Services Administration in success-
ness of the charges. Upon postpayment audit in our Office, it is not
fully prosecuting several instances of unreasonable charges collected
uncommon to discover that the paid charges, even though they may
by the railroads under part I of the Interstate Commerce Act. Such
have been based upon published and filed tariffs, were and are prima
cases have been developed in our Office in the course of our regular
facie or conclusively unlawful in the light of standards established by
audit and, as we have indicated, since we are precluded by Public
the Interstate Commerce Commission and the courts when considering
Law 85-762, effective August 26, 1958, 49 U.S.C.A. 66, from taking
similar factual situations. Prior to the T.I.M.E. decision, under
setoff action in the case of any (railroad or motor carrier) unlawful
established rules of law, our auditors availed the Government of the
(unreasonable) charges, our Office refers carrier transactions, which
Commission's prior findings of unreasonableness of motor carrier rates
might reflect the need for action to correct unlawful tariff situations,
and practices. Because of the T.I.M.E. decision, this is no longer
to the interested Government agency.
20
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
21
Since we had been applying the Commission's findings of unreason-
revenues for the fiscal year ended June 30, 1963, were in excess of
ableness in like situations in the audit of paid motor carrier charges,
$10 billion, while those of the motor carriers of passengers and property
we were able, for some time after the Supreme Court decision, to state
were about $9,694 million. These figures suggest that the existing
from our records a total outstanding amount of excess charges paid by
immunity of motor carriers from actions for the recovery of unlawful
the Government because of unjust and unreasonable rates. Between
charges cannot be defended solely on financial or economic grounds.
May 18, 1959 (the date of the T.I.M.E. decision), and February 4,
If such special treatment for motor carriers can be justified, question
1961, we found such excess charges totaling $1,200,000. The average
arises as to whether, for the purpose of uniformity in the applicability
weekly rate of accumulation at the end of the reporting period was
of statutory provisions controlling unlawful carrier rates and charges,
approximately $4,000. Because we lack legal means to recover such
rail carriers should not be relieved from an obligation to pay damages
overpayments, because of the audit workload otherwise, and because
on past shipments in unlawful charge situations. We believe that the
we felt that a fairly constant rate of overpayments per week was
statutory remedies against railroads should be retained and that the
being maintained, we discontinued recording overpayment statistics.
discrimination against railroads in this respect (and the denial of an
The situation produced by the T.I.M.E. decision continues to
appropriate remedy to shippers) should be removed by equalizing the
prevail and it has been complicated by another Supreme Court de-
respective positions of the rail and motor carriers.
cision, Hewitt-Robins, Inc. V. Eastern Freight-Ways, Inc., 371 U.S. 84,
We have consistently recommended enactment of legislation to
decided November 19, 1962. In that case a private shipper sued a
overcome the T.I.M.E. decision in order to promote uniformity of
motor carrier for damages caused by the unreasonable practice of
treatment of both carriers and shippers. We believe that the present
misrouting. Instead of transporting the shipper's goods from Buffalo,
state of the law, as a result of the Hewitt-Robins decision, makes
N.Y., to New York City, over its low-rated intrastate route, the
enactment of such legislation even more desirable. We strongly urge
carrier transported them over its higher rated interstate route. The
that your committee give early and favorable consideration to H.R.
district court held the case in abeyance while the parties sought an
5869.
Interstate Commerce Commission ruling on the reasonableness of the
Sincerely yours,
practice; the Commission held it to be unreasonable, but by the time
JOSEPH CAMPBELL,
the case was reached again in the district court, T.I.M.E. had been
Comptroller General of the United States.
decided, and the district court dismissed the complaint. The court of
appeals agreed, and the shipper took his case to the Supreme Court.
The Supreme Court concluded that T.I.M.E. did not control and
INTERSTATE COMMERCE COMMISSION,
reversed, thus in effect upholding an Interstate Commerce Commission
Washington, D.C., March 29, 1965:
determination of an unreasonable practice (carrier misrouting) result-
Hon. OREN HARRIS,
ing in damages recoverable by the shipper. The Court held that
Chairman, Committee on Interstate and Foreign Commerce,
whether a common law remedy survived enactment of the Motor
House of Representatives, Washington, D.C.
Carrier Act depends on the effect of the exercise of the remedy upon the
statutory scheme of regulation; that even though the carrier misrout-
DEAR CHAIRMAN HARRIS: In response to your request for additional
ing resulted in the exaction of excess charges, it raised not a question
comments on the bill, H.R. 5869, introduced by you, which would
rates, but one of routes; that a remedy for misrouting was not incon-
give effect to legislative recommendation No. 15, in the Commission's
sistent with the statutory scheme of regulation and that such a remedy,
78th Annual Report, I enclose a statement of justification for this bill.
therefore, survived the passage of the act. The Court "put no sig-
Sincerely yours,
nificance in whether one tags the claim as 'overcharges,' or "whether
CHARLES. A. WEBB, Chairman.
it is a proceeding involving the 'reasonableness' of routing practices."
The Hewitt-Robins decision tends to introduce an element of con-
JUSTIFICATION
fusion in considering the availability of a shipper's postshipment
H.R. 5869 would amend sections 204a and 406a of the Interstate
remedy for the recovery of damages under the Motor Carrier Act in
Commerce Act, which relate to actions at law for the recovery of
that an unreasonable practice caused by a carrier's misrouting, as in
Hewitt-Robins, is treated as being distinguishable from the unreason-
charges by or against common carriers by motor vehicle and freight
able charge situation in T.I.M.E. Other distinguishable unlawful
forwarders, so as to make such carriers liable for the payment of
situations may exist and might be recognized and identified as furnish-
damages to persons, including the United States as a shipper, injured
by them as a result of unreasonable charges on past shipments. It
ing grounds for the recovery of damages, but only after protracted and
costly litigation.
would give to an injured party the choice of pursuing his remedy
Provisions for the recovery of unlawful charges have been in effect
either before the Commission or in any court of competent jurisdiction.
since 1906 (Hepburn Act) insofar as rail carriers are concerned, and
Appropriate periods of limitation are provided with respect to the
commencement of such actions or proceedings.
it is difficult to rationalize the continued omission of similar provisions
from the motor carrier and freight forwarder parts of the Interstate
At present, liability for an unreasonable rate exists, and a remedy is
provided, only with respect to violations by railroads and other carriers
Commerce Act. According to the 78th Annual Report (p. 34) of the
subject to part I and by water carriers subject to part III of the act.
Interstate Commerce Commission the regulated railroad operating
Prior to the decision of the Supreme Court in T.I.M.E. Inc. V. United
22
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
23
States, 359 U.S. 464, May 18, 1959, the Commission, upon petition,
INTERSTATE COMMERCE COMMISSION,
made determinations of the reasonableness of past motor carrier rates
Washington, D.C., March 29, 1965.
on the assumption that the petitioner was entitled to maintain an
Hon. OREN HARRIS,
action in court for reparations based upon the unreasonableness of
Chairman, Committee on Interstate and Foreign Commerce,
such rates. However, in that case, the Court ruled that a shipper
House of Representatives, Washington, D.C.
by a motor common carrier subject to part II cannot challenge in post-
DEAR CHAIRMAN HARRIS: In response to your request for addi-
shipment litigation the reasonableness of the carrier's past charges
tional comments on the bill, H.R. 5250, introduced by you, which
made in accordance with applicable tariffs filed with the Commission.
would give effect to legislative recommendation No. 4, in the Com-
A shipper, therefore, is without remedy for injury arising from the
mission's 78th Annual Report, I enclose a statement of justification
application of an unreasonable rate. Since the pertinent provisions
for this bill.
of part IV are similar to those under part II, a shipper by freight
Sincerely yours,
forwarder subject to part IV appears to be in the same plight.
CHARLES A. WEBB, Chairman.
The motor carrier industry has attained stature and stability as one
of the chief agencies of public transportation, handling a substantial
JUSTIFICATION
volume of the Nation's traffic. It seems appropriate, therefore, that
shippers should have the same rights of recovery against motor carriers
The purpose of H.R. 5250 is to grant the Interstate Commerce
as they have against rail and water carriers for violations of the act.
Commission specific authority to revoke water carrier certificates and
The need for the relief proposed is evidenced by the number of
permits for nonuse. It would also specifically authorize the Com-
proceedings instituted by shippers for redress against motor common
mission, in its discretion, to amend or revoke, in whole or in part, a
carriers prior to the decision in the T.I.M.E. case. During the years
certificate or permit upon the application of the holder thereof.
ended June 30, 1958, and 1959, for example, 20 and 14 formal com-
At present 268 water carrier certificates and permits issued by the
plaints or petitions, respectively, were filed to secure the Commission's
Commission remain in effect. Of this number, 84 or 31.2 percent
determination of the reasonableness of established motor carrier
are not being used, 10 of which have been dormant since World War
rates ancillary to court actions for the recovery of reparations. Dur-
II. Although the Commission may, upon proper application, grant
ing the calendar year 1958, a total of 101 informal complaints were
identical operating authority to other carriers, the mere existence of
filed against motor carriers claiming damages for unreasonable rates
these dormant certificates and permits under which operations can
and practices. In 1950 only 10 such complaints were handled by
be lawfully reactivated at any time acts as a deterrent to the institu-
the Commission, but by 1954 the number had risen to 110. Prior to
tion of new operations by other carriers and in some instances is a
the decision in the T.I.M.E. case, adjustments of such complaints
threat to the economic well-being of the transportation industry.
were negotiated, in appropriate cases, by an informal and inexpensive
While water carriers should have reasonable protection against loss
procedure involving informal conferences and correspondence with
of their operating rights where abnormal or special conditions have
the parties. Many informal complaints, however, were found not
hindered resumption or continuance of operations, it is not in the
to be susceptible of adjustment by such means. If the Commission
public interest that unused operating authorities be allowed to remain
had then been vested with the requisite authority, the filing of formal
in effect indefinitely.
complaints seeking awards of reparations probably would have fol-
Part III of the Interstate Commerce Act does not specifically
lowed, as is now the practice under parts I and III of the act. In
provide revocation authority and procedure such as are found in
this connection it should be noted that reparation procedures before
parts II and IV thereof, which apply to motor carriers and freight
the Commission are more simple and less expensive than actions in
forwarders, respectively. In this connection, the Supreme Court,
court to attain the same end. It may be anticipated, therefore, that
in United States V. Seatrain Lines, Inc., 329 U.S. 424, indicated that
although both the courts and the Commission would be authorized
in the absence of express authority granted by Congress the Com-
under the proposed amendments to award reparations, shippers would
mission does not have the authority to revoke, in whole or in part,
prefer resort to the Commission since the reasonableness of the rates
water carrier certificates or permits issued under part III of the act,
involved would, under the provisions of the act, have to be determined
once they have become effective and the time for requesting rehearing
by it upon referral of the question by the court.
or reconsideration has expired.
Although the need for a provision authorizing awards of reparations
Accordingly, H.R. 5250 would give the Commission specific au-
against freight forwarders is not as pressing as in the case of motor
thority to determine upon the facts in each case whether a certificate
carriers, it is equitable, logical, and desirable that all four parts of the
or permit should be revoked for nonuse. It would also confirm the
act be uniform and that shippers by different modes be treated in
Commission's power to revoke water carrier certificates and permits
similar fashion. Appropriate amendments to section 406a are there-
when tendered by the holder for cancellation.
fore included in the draft bill.
The authority sought is limited to the revocation of certificates and
permits only in those cases of willful failure to operate or when re-
quested by the holder. It is not contemplated that operating au-
thorities would be revoked for nonuse without allowing a reasonable
period of time for resumption of service.
24
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
25
EXECUTIVE OFFICE OF THE PRESIDENT,
referred to in section 205(f) of this Act, and promulgated by the Com-
BUREAU OF THE BUDGET,
mission. As 80 certified, such standards, or amendments thereto, shall
Washington, D.C., April 19, 1965.
Hon. OREN HARRIS,
be promulgated forthwith by the Commission and shall become effective
five years from the date of such promulgation. As used in this paragraph,
Chairman, Committee on Interstate and Foreign Commerce,
"standards or amendments thereto" shall mean specification of forms and
House of Representatives, Washington, D.C.
procedures required to evidence the lawfulness of interstate operations of a
DEAR MR. CHAIRMAN; This is in reply to your request for the views
carrier within a State by (a) filing and maintaining current records of the
of the Bureau of the Budget on H.R. 5205, a bill to amend part III
certificates and permits issued by the Commission, (b) registering and
of the Interstate Commerce Act to authorize the Interstate Commerce
identifying vehicles as operating under such certificates and permits,
Commission to revoke, amend, or suspend water carrier certificates
(c) filing and maintaining evidence of currently effective insurance or
or permits under certain conditions.
qualifications as a self-insurer under rules and regulations of the Com-
This office would have no objection to the enactment of the pro-
mission, and (d) filing designations of local agents for service of process.
posed legislation.
Different standards may be determined and promulgated for each of the
Sincerely yours,
classes of carriers as differences in their operations may warrant. In
PHILLIP S. HUGHES,
determining or amending such standards, the national organization of the
Assistant Director for Legislative Reference.
State commissions shall consult with the Commission and with representa-
tives of motor carriers subject to State registration requirements. To the
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
extent that any State requirements for registration of motor carrier
In compliance with clause 3 of rule XIII of the Rules of the House
certificates or permits issued by the Commission impose obligations which
are in excess of the standards or amendments thereto promulgated under
of Representatives, changes in existing law made by the bill, as
this paragraph, such excessive requirements shall, on the effective date of
reported, are shown as follows (existing law proposed to be omitted
such standards, constitute an undue burden on interstate commerce. If
is enclosed in black brackets, new matter is printed in italic, existing
the national organization of the State commissions fails to determine and
law in which no change is proposed is shown in roman):
certify to the Commission such standards within eighteen months from
the effective date of the paragraph, or if that organization at any time deter-
INTERSTATE COMMERCE ACT
mines to withdraw in their entirety standards previously determined or
*
*
*
*
*
*
promulgated, it shall be the duty of the Commission, within one year
PART II
thereafter, to devise and promulgate such standards, and to review from
time to time the standards 80 established and make such amendments
SHORT TITLE
thereto as it may deem necessary, in accordance with the foregoing require-
ments of this paragraph. Nothing in this paragraph shall be construed to
SEC. 201. This part may be cited as part II of the Interstate
deprive the Commission, when there is a reasonable question of interpreta-
Commerce Act.
tion or construction, of its jurisdiction to interpret or construe certificates
APPLICATION OF PROVISIONS
of public convenience and necessity, or permits, or rules and regulations
issued by the Commission, nor to authorize promulgation of standards
SEC. 202. (a) The provisions of this part apply to the transporta-
in conflict with any rule or regulation of the Commission.
tion of passengers or property by motor carriers engaged in interstate
*
or foreign commerce and to the procurement of and the provision of
facilities for such transportation, and the regulation of such trans-
ACTIONS FOR RECOVERY OF CHARGES; LIMITATION OF ACTIONS
portation, and of the procurement thereof, and the provision of
facilities therefor, is hereby vested in the Interstate Commerce
SEC. 204a. (1) All actions at law by common carriers by motor
Commission.
vehicle subject to this part for the recovery of their charges, or any
(b) (1) Nothing in this part shall be construed to affect the powers
part thereof, shall be begun within three years from the time the cause
of taxation of the several States or to authorize a motor carrier to
of action accrues, and not after.
do an intrastate business on the highways of any State, or to interfere
(2) For recovery of reparations, action at law shall be begun against
with the exclusive exercise by each State of the power of regulation of
common carriers by motor vehicle subject to this part within two years
intrastate commerce by motor carriers on the highways thereof.
from the time the cause of action accrues, and not after, and for recovery
(2) The requirement by a State that any motor carrier operating in
of overcharges, action at law shall be begun against common carriers
interstate or foreign commerce within the borders of that State register its
by motor vehicle subject to this part within three years from the time
certificate of public convenience and necessity or permit issued by the
the cause of action accrues, and not after, subject to paragraph (3) of
Commission shall not constitute an undue burden on interstate commerce
this section, except that if claim for the overcharge has been presented
provided that such registration is accomplished in accordance with stand-
in writing to the carrier within the three-year period of limitation said
ards, or amendments thereto, determined and officially certified to the
period shall be extended to include six months from the time notice in
Commission by the national organization of the State commissions, as
writing is given by the carrier to the claimant of disallowance of the
claim, or any part or parts thereof, specified in the notice.
26
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
27
(3) If on or before expiration of the three-year period of limitation
department under this or any other Act; and if there be no such suit-
in paragraph (2) a common carrier by motor vehicle subject to this
able space in the Interstate Commerce Commission Building, the same
part begins action under paragraph (1) for recovery of charges in
shall be assigned in some other building in convenient proximity
respect of the same transportation service, or, without beginning
thereto.
action, collects charges in respect of that service, said period of
limitation shall be extended to include ninety days from the time such
action is begun or such charges are collected by the carrier.
UNLAWFUL OPERATION
(4) The cause of action in respect of a shipment of property shall,
SEC. 222. (a)
for the purposes of this section, be deemed to accrue upon delivery or
[(b) If any motor carrier or broker operates in violation of any
tender of delivery thereof by the carrier, and not after.
provision of this part (except as to the reasonableness of rates, fares, or
(5) The term "reparations" as used in this section means damages
charges and the discriminatory character thereof), or any rule, regu-
resulting from charges for transportation services to the extent that the
lation, requirement, or order thereunder, or of any term or condition
Commission, upon complaint made as provided in section 216(e) of
of any certificate or permit, the Commission or its duly authorized
this part, finds them to have been unjust and unreasonable, or unjustly
agent may apply to the district court of the United States for any
discriminatory or unduly preferential or unduly prejudicial.
district where such motor carrier or broker operates, for the enforce-
[(5) (6) The term "overcharges" as used in this section shall be
ment of such provision of this part, or of such rule, regulation,
deemed to mean charges for transportation services in excess of those
requirement, order, term, or condition; and such court shall have
applicable thereto under the tariffs lawfully on file with the Commis-
jurisdiction to enforce obedience thereto by a writ of injunction or
sion.
[(6)] (7) The provisions of this section shall apply only to cases
by other process, mandatory or otherwise, restraining such carrier
or broker, his or its officers, agents, employees, and representatives
in which the cause of action may accrue after the date of the enact-
from further violation of such provision of this part or of such rule,
ment of this section.
[(7)] (8) The provisions of this section 204a shall extend to and
regulation, requirement, order, term, or condition and enjoining upon
it or them obedience thereto.
embrace all transportation of property or passengers for or on behalf
(b) (1) If any motor carrier or broker operates in violation of any pro-
of the United States in connection with any action brought before
vision of this part (except as to the reasonableness of rates, fares, or
any court or by or against carriers subject to this part: Provided,
charges and the discriminatory character thereof); or any lawful rule,
however, That with respect to such transportation of property or
passengers for or on behalf of the United States, the periods of limita-
regulation, requirement, or order promulgated by the Commission, or of
any term or condition of any certificate or permit, the Commission or its
tion herein provided shall be extended to include three years from the
duly authorized agent may apply for the enforcement thereof to the district
date of (A) payment of charges for the transportation involved, or
court of the United States for any district where such motor carrier or
(B) subsequent refund for overpayment of such charges, or (C) deduc-
broker operates. In any proceeding instituted under the provisions of
tion made under section 322 of the Transportation Act of 1940 (49
this subsection, any person, or persons, acting in concert or participat-
U.S.C. 66), whichever is later.
ing with such carrier or broker in the commission of such violation may,
without regard to his or their residence, be included, in addition to the
ADMINISTRATION
motor carrier or broker, as a party, or parties, to the proceeding. The
SEC. 205. (a)
court shall have jurisdiction to enforce obedience to any such provision
of this part, or of such rule, regulation, requirement, order, term, or con-
(f) The Commission is authorized to confer with or to hold joint
dition by a writ of injunction or by other process, mandatory or other-
hearings with any authorities of any State in connection with any
wise, restraining such carrier or broker, his or its offices, agents, employees,
matter arising in any proceedings under this part. The Commission
and representatives, and such other person, or persons, acting in concert
is also authorized to avail itself of the cooperation, services, records,
or participating with such carrier or broker, from further violation of such
and facilities of such State authorities as fully as may be practicable,
provision of this part, or of such rule, regulation, requirement, order, term,
in the enforcement or administration of any provision of this part. In
or condition and enjoining upon it or them obedience thereto. Process
addition, the Commission is authorized to make cooperative agreements
in such proceedings may be served upon such motor carrier, or broker, or
with the various States to enforce the economic and safety laws and regu-
upon such person, or persons, acting in concert or participating therewith
lations of the various States and the United States concerning highway
in the commission of such violation, without regard to the territorial limits
transportation. From any space in the Interstate Commerce Commis-
of the district or of the State in which the proceeding is instituted.
sion Building not required by the Commission, the Government
(2) If any person operates in clear and patent violation of any pro-
authority controlling the allocation of space in public buildings shall
visions of section 203(c), 206, 209, or 211 of this part, or any rule,
assign for the use of the national organization of the State commissions
regulation, requirement, or order thereunder, any person injured thereby
and of their representatives suitable office space and facilities which
may apply to the district court of the United States for any district where
shall be at all times available for the use of joint boards created under
such person so violating operates, for the enforcement of such section, or
this part and for members and representatives of such boards cooper-
of such rule, regulation, requirement, or order. The court shall have
ating with the Commission or with any other Federal commission or
28
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
29
jurisdiction to enforce obedience thereto by a writ of injunction or by other
costs and expenses of such prosecution shall be paid out of the appro-
process, mandatory or otherwise, restraining such person, his or its
priation for the expenses of the courts of the United States.
officers, agents, employees, and representatives from further violation of
such section or of such rule, regulation, requirement, or order; and
enjoining upon it or them obedience thereto. A copy of any application
PART III
for relief filed pursuant to this paragraph shall be served upon the Com-
mission and a certificate of such service shall appear in such application.
SHORT TITLE
The Commission may appear as of right in any such action. The party
SEC. 301. This part, divided into sections according to the following
who or which prevails in any such action may, in the discretion of the
table of contents, may be cited as part III of the Interstate Commerce
court, recover reasonable attorney's fees to be fixed by the court, in addition
Act:
to any costs allowable under the Federal Rules of Civil Procedure, and
TABLE OF CONTENTS
the plaintiff instituting such action shall be required to give security, in
Sec. 301. Short title.
such sum as the court deems proper, to protect the interests of the party
Sec. 302. Definitions.
or parties against whom any temporary restraining order, temporary
Sec. 303. Application of provisions; exemptions.
injunctive, or other process is issued should it later be proven unwarranted
Sec. 304. General powers and duties of the Commission.
by the facts and circumstances, Nothing in this paragraph shall be
Sec. 305. Rates, fares, charges, and practices; through routes.
Sec. 306. Tariffs and schedules.
construed to deprive the Commission of its jurisdiction to interpret or
Sec. 307. Commission's authority over rates, and SO forth.
construe certificates of public convenience and necessity or permits, or
Sec. 308. Reparation awards; limitation of actions.
rules and regulations issued by the Commission.
Sec. 309. Certificates of public convenience and necessity and permits.
Sec. 310. Dual operations under certificates and permits.
Sec. 311. Temporary operations.
(h) Any motor carrier, broker, or lessor, or other person, or any
Sec. 312. Transfer of certificates and permits.
officer, agent, employee, or representative thereof, who shall fail or
Sec. 312a. Revocation of certificates and permits.
Sec. 313. Accounts, records, and reports.
refuse to keep, preserve, or forward any account, record, or memo-
Sec. 314. Allowances to shippers for transportation services.
randum in the substance, form, or manner prescribed in this part or
Sec. 315. Notices, orders, and service of process.
in any rule, order, or regulation prescribed under this part; or who
Sec. 316. Enforcement and procedure.
shall fail or refuse to comply with any requirement of this part with
Sec. 317. Unlawful acts and penalties.
Sec. 318. Collection of rates and charges.
respect to the filing with this Commission or with any agency, office,
Sec. 319. Employees.
or representative of the Commission, as prescribed by the Commis-
Sec. 320. Repeals.
sion, any annual, periodical, or special report, or other report, tariff,
Sec. 321. Transfer of employees, records, property, and appropriations.
schedule, contract, document, or data or with any rule, order, or
Sec. 322. Existing orders, rules, tariffs, and so forth; pending matters.
Sec. 323. Separability of provisions.
regulation prescribed with respect to such filing; or who shall fail or
refuse to make full, true, or correct answer to any question required
DEFINITIONS
by the Commission to be made under the provisions of this part,
[shall forfeit to the United States the sum of $100 for each such
SEC. 302. For the purposes of this part-
offense, and, in case of a continuing violation, not to exceed $50]
(a) The term "person" includes any individual, firm, copartnership,
or who shall fail or refuse to comply with the provisions of section 203(c)
corporation, company, association, joint stock association, and any
or section 206(a) (1) or section 209(a)(1) shall forfeit to the United States
trustee, receiver, assignee, or personal representative thereof.
not to exceed $500 for each such offense, and, in case of a continuing viola-
(b) The term "Commission" means the Interstate Commerce
tion not to exceed $250 for each additional day during which such failure
Commission.
or refusal shall continue. All forfeitures provided for in this paragraph
(c) The term "water carrier" means a common carrier by water or
shall be payable into the Treasury of the United States and shall be
a contract carrier by water.
recoverable in a civil suit in the name of the United States, brought
(d) The term "common carrier by water" means any person which
in the district where the motor carrier or broker has its principal
holds itself out to the general public to engage in the transportation
office, or in any district in which such motor carrier or broker was, at
by water in interstate or foreign commerce of passengers or property
the time of the offense, authorized by this Commission, or by this
or any class or classes thereof for compensation, except transportation
part, to engage in operation as such motor carrier or broker; or in
by water by an express company subject to part I in the conduct of
any district where such forfeiture may accrue; or in the district where
its express business, which shall be considered to be and shall be
the offender is found. All process in any such case may be served
regulated as transportation subject to part I.
in the judicial district whereof such offender is an inhabitant or
(e) The term "contract carrier by water" means any person which,
wherever he may be found. It shall be the duty of the various
under individual contracts or agreements, engages in the transporta-
district attorneys under the direction of the Attorney General of the
tion (other than transportation referred to in paragraph (d) and the
United States to prosecute for the recovery of such forfeitures. The
exception therein) by water of passengers or property in interstate or
foreign commerce for compensation.
30
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
31
The furnishing for compensation (under a charter, lease, or other
within the United States for movement to a place outside thereof,
agreement) of a vessel, to a person other than a carrier subject to
and, in the case of a movement from a place outside the United
this Act, to be used by the person to whom such vessel is furnished in
States, only insofar as such transportation by water takes place
the transportation of its own property, shall be considered to con-
from any place in the United States to any other place therein
stitute as to the vessel SO furnished, engaging in transportation for
after transshipment at a place within the United States in a
compensation by the person furnishing such vessel, within the mean-
movement from a place outside thereof.
ing of the foregoing definition of "contract carrier by water". When-
(j) The term "United States" means the States of the United
ever the Commission, upon its own motion or upon application of
States and the District of Columbia.
any interested party, determines that the application of the preceding
(k) The term "State" means a State of the United States or the
sentence to any person or class of persons is not necessary in order to
District of Columbia.
effectuate the national transportation policy declared in this Act, it
(1) The term "common carrier by railroad" means a common
shall by order exempt such person or class of persons from the pro-
carrier by railroad subject to the provisions of part I.
visions of this part for such period of time as may be specified in such
(m) The term "common carrier by motor vehicle" means a common
order. The Commission may by order revoke any such exemption
carrier by motor vehicle subject to the provisions of part II.
whenever it shall find that the application of such sentence to the
*
*
*
*
*
*
*
exempted person or class of persons is necessary in order to effectuate
such national transportation policy. No such exemption shall be
CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY AND PERMITS
denied or revoked except after reasonable opportunity for hearing.
(f) The term "vessel" means any watercraft or other artificial
SEC. 309. (a) Except as otherwise provided in this section and sec-
contrivance of whatever description which is used, or is capable of
tion 311, no common carrier by water shall engage in transportation
being, or is intended to be, used as a means of transportation by water.
subject to this part unless it holds a certificate of public convenience
(g) The term "transportation facility" includes any vessel, ware-
and necessity issued by the Commission: Provided, however, That, sub-
house, wharf, pier, dock, yard, grounds, or any other instrumen-
ject to section 310, if any such carrier or a predecessor in interest was
tality or equipment of any kind, used in or in connection with trans-
in bona fide operation as a common carrier by water on January 1,
portation by water subject to this part.
1940, over the route or routes or between the ports with respect to
(h) The term "transportation" includes the use of any transporta-
which application is made and has SO operated since that time (or, if
tion facility (irrespective of ownership or of any contract, express or
engaged in furnishing seasonal service only, was in bona fide operation
implied, for such use), and includes any and all services in or in con-
during the seasonal period, prior to or including such date, for opera-
nection with transportation, including the receipt, delivery, elevation,
tions of the character in question) except, in either event, as to inter-
transfer in transit, refrigeration or icing, ventilation, storage, and
ruptions of service over which the applicant or its predecessor in
handling of property transported or the interchange thereof with any
interest had no control, the Commission shall issue such certificate
other agency of transportation.
without requiring further proof that public convenience and necessity
(i) The term "interstate or foreign transportation" or "trans-
will be served by such operation, and without further proceedings, if
portation in interstate or foreign commerce", as used in this part,
application for such certificate is made to the Commission as provided
means transportation of persons or property—
in subsection (b) of this section and prior to the expiration of one
(1) wholly by water from a place in a State to a place in any
hundred and twenty days after this section takes effect. Pending the
other State, whether or not such transportation takes place
determination of any such application, the continuance of such opera-
wholly in the United States;
tion shall be lawful. If the application for such certificate is not made
(2) partly by water and partly by railroad or motor vehicle,
within one hundred and twenty days after this section takes effect, it
from a place in a State to a place in any other State; except that
shall be decided in accordance with the standards and procedure
with respect to such transportation taking place partly in the
provided for in subsection (c), and such certificate shall be issued or
United States and partly outside thereof, such terms shall include
denied accordingly. Any person, not included within the provisions
transportation by railroad or motor vehicle only insofar as it
of the foregoing proviso, who is engaged in transportation as a common
takes place within the United States, and shall include transpor-
carrier by water when this section takes effect may continue such
tation by water only insofar as it takes place from a place in the
operation for a period of one hundred and twenty days thereafter with-
United States to another place in the United States;
out a certificate, and, if application for such certificate is made to the
(3) wholly by water, or partly by water and partly by railroad
Commission within such period, the continuance of such operation
or motor vehicle, from or to a place in the United States to or
shall be lawful pending determination of such application: Provided
from a place outside the United States, but only (A) insofar as
further, That, subject to the provisions of section 310, if any person
such transportation by rail or by motor vehicle takes place
(or his predecessor in interest) was in operation on August 26, 1958,
within the United States, and (B) in the case of a movement to
over any inland waterway, other than the high seas, as a common
a place outside the United States, only insofar as such transporta-
carrier by water, in interstate or foreign commerce, between points in
tion by water takes place from any place in the United States
the Territory of Alaska, and has SO operated in Alaska since that time
to any other place therein prior to transshipment at a place
(or if engaged in furnishing seasonal service only, was engaged in such
32
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
33
operations in the year 1958 during the season ordinarily covered by its
operations, and such operations have not been discontinued), except
or routes or between the ports with respect to which application is
in either instance as to interruptions of service over which such person
made, and has so operated since that time (or, if engaged in furnishing
or his predecessor in interest had no control, a certificate shall be
seasonal service only, was in bona fide operation during the seasonal
issued authorizing such operations without requiring further proof that
period, prior to or including such date, for operations of the character
public convenience and necessity will be served thereby, and without
in question) except, in either event, as to interruptions of service over
further proceedings, if application for such certificate is made as pro-
which the applicant or its predecessor in interest had no control, the
vided herein on or before December 31, 1960. Pending the deter-
Commission shall issue such permit, without further proceedings, if
mination of any such application, the continuance of such operations
application for such permit is made to the Commission as provided in
without a certificate shall be lawful. Applications for certificates
subsection (g) of this section and prior to the expiration of one hundred
under this proviso shall be filed with the Commission in writing, and
and twenty days after this section takes effect. Pending the deter-
in such form, contain such information, and be accompanied by proof
mination of any such application, the continuance of such operation
of service upon such interested parties as the Commission shall require.
shall be lawful. If the application for such permit is not made within
(b) Application for a certificate shall be made in writing to the
one hundred and twenty days after this section takes effect, it shall be
Commission, be verified under oath, and shall be in such form and
decided in accordance with the standards and procedure provided for
contain such information and be accompanied by proof of service upon
in subsection (g), and such permit shall be issued or denied accord-
such interested parties as the Commission shall, by regulations, require.
ingly. Any person, not included within the provision of the foregoing
(c) Subject to section 310, upon application as provided in this
proviso, who is engaged in transportation as a contract carrier by
section the Commission shall issue a certificate to any qualified
water when this section takes effect may continue such operation for
applicant therefor, authorizing the whole or any part of the operations
a period of one hundred and twenty days thereafter without a permit,
covered by the application, if the Commission finds that the applicant
and, if application for such permit is made to the Commission within
is fit, willing, and able properly to perform the service proposed and
such period, the continuance of such operation shall be lawful pending
to conform to the provisions of this part and the requirements, rules,
the determination of such application: Provided further, That, subject
and regulations of the Commission thereunder, and that the proposed
to the provisions of section 310, if any person (or his predecessor in
service, to the extent authorized by the certificate, is or will be required
interest) was in operation on August 26, 1958, over any inland water-
by the present or future public convenience and necessity; otherwise
way, other than the high seas, as a contract carrier by water, in inter-
such application shall be denied.
state or foreign commerce, between points in the Territory of Alaska,
(d) Such certificate shall specify the route or routes over which,
and has SO operated in Alaska since that time (or if engaged in fur-
or the ports to and from which, such carrier is authorized to operate,
nishing seasonal service only, was engaged in such operations in the
and, at the time of issuance and from time to time thereafter, there
year 1958 during the season ordinarily covered by its operations, and
shall be attached to the exercise of the privileges granted by such
such operations have not been discontinued), except in either instance
certificate such reasonable terms, conditions, and limitations as the
as to interruptions of service over which such person or his predecessor
public convenience and necessity may from time to time require,
in interest had no control, a permit shall be issued authorizing such
including terms, conditions, and limitations as to the extension of the
operations, without further proceedings, if application for such permit
route or routes of the carrier, and such other terms, and conditions,
is made as provided herein before December 31, 1960. Pending the
and limitations as are necessary to carry out, with respect to the
determination of such application, the continuance of such operations
operations of the carrier, the requirements of this part or those
without a permit shall be lawful. Applications for permits under
established by the Commission pursuant thereto: Provided, however,
this proviso shall be filed with the Commission in writing, and in such
That no terms, conditions, or limitations shall restrict the right of the
form, contain such information, and be accompanied by proof of serv-
carrier to add to its equipment, facilities, or service within the scope
ice upon such interested parties as the Commission shall require.
of such certificate, as the development of the business and the demands
(g) Application for such permit shall be made to the Commission
of the public shall require, or the right of the carrier to extend its
in writing, be verified under oath, and shall be in such form and
services over uncompleted portions of waterway projects now or
contain such information and be accompanied by proof of service
hereafter authorized by Congress, over the completed portions of
upon such interested parties as the Commission shall, by regulations,
which it already operates, as soon as such uncompleted portions are
require. Subject to section 310, upon application the Commission
open for navigation.
shall issue such permit if it finds that the applicant is fit, willing, and
(e) No certificate issued under this part shall confer any proprie-
able properly to perform the service proposed and to conform to the
tary or exclusive right or rights in the use of public waterways.
provisions of this part and the requirements, rules, and regulations
(f) Except as otherwise provided in this section and section 311,
of the Commission thereunder, and that such operation will be con-
no person shall engage in the business of a contract carrier by water
sistent with the public interest and the national transportation policy
unless he or it holds an effective permit, issued by the Commission
declared in this Act. The business of the carrier and the scope thereof
authorizing such operation: Provided, That, subject to section 310,
shall be specified in such permit and there shall be attached thereto
if any such carrier or a predecessor in interest was in bona fide opera-
at time of issuance and from time to time thereafter such reasonable
tion as a contract carrier by water on January 1, 1940, over the route
terms, conditions, and limitations, consistent with the character of
the holder as a contract carrier by water, as are necessary to carry
34
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
35
out the requirements of this part or those lawfully established by the
ceeding one hundred and eighty days, of operation of the properties
Commission pursuant thereto: Provided, however, That no terms,
of such carriers by water by the person proposing to acquire them,
conditions, or limitations shall restrict the right of the carrier to
as aforesaid.
substitute or add contracts within the scope of the permit, or to add
TRANSFER OF CERTIFICATES AND PERMITS
to his equipment, facilities, or service, within the scope of the permit,
as the development of the business and the demands of the carrier's
SEC. 312. Except as provided in this part, any such certificate or
patrons shall require.
permit may be transferred in accordance with such regulations as the
(h) No person shall be required to obtain a certificate under subsection
Commission shall prescribe for the protection of the public interest
(a) in order to perform transportation subject to the provisions of this
and to insure compliance with the provisions of this part.
part over any route or routes or between any ports with respect to which
no such certificate is in effect, and on and after the effective date of this
REVOCATION OF CERTIFICATES AND PERMITS
subsection no such certificates shall be issued to perform such transporta-
SEC. 312a. (1) Certificates and permits shall be effective from the
tion over any route or routes or between any ports with respect to which
date specified therein, and shall remain in effect until suspended or
no such certificate is then in effect. Any person performing such trans-
portation under the provisions of this subsection shall be deemed to be
revoked as provided in this section.
(2) Any certificate or permit issued under this part may, upon appli-
a common carrier by water for the purposes of this part. The Com-
mission may not suspend any initial schedule of rates filed by any person
cation of the holder thereof, in the discretion of the Commission, be
amended or revoked, in whole or in part, or may, upon complaint, or on
performing transportation under the provisions of this subsection for
the Commission's own initiative, after reasonable notice and opportunity
which such person has never had rates on file with the Commission.
for hearing, be suspended, changed, or revoked, in whole or in part, for
willful failure to engage in, or to continue to engage in, the operation
DUAL OPERATIONS UNDER CERTIFICATES AND PERMITS
authorized by such certificate or permit.
SEC. 310. Unless, for good cause shown, the Commission shall find,
(3) The Commission shall, upon complaint or on its own initiative,
or shall have found, that both a certificate and a permit may be SO
after reasonable notice and opportunity for hearing, in any case of
held consistently with the public interest and with the national
willful failure to engage in any operation authorized by any such certifi-
transportation policy declared in this Act-
cate for a period of three or more years (whether occurring before or after
(1) no person, or any person controlling, controlled by, or under
the date of enactment of this section), revoke the part of such certificate
common control with such person, shall hold a certificate as a common
authorizing such operation.
carrier by water if such person, or any such controlling person, con-
trolled person, or person under common control, holds a permit as a
PART IV
contract carrier by water; and
(2) no person, or any person controlling, controlled by, or under
common control with such person, shall hold a permit as a contract
carrier by water if such person, or any such controlling person, con-
ACTIONS FOR RECOVERY OF CHARGES; LIMITATION OF ACTIONS
trolled person, or person under common control, holds a certificate as a
SEC. 406a. (1) All actions at law by freight forwarders subject
common carrier by water.
to this part for the recovery of their charges, or any part thereof, shall
be begun within three years from the time the cause for action accrues,
TEMPORARY OPERATIONS
and not after.
SEC. 311. (a) To enable the provision of service for which there is
(2) For recovery of reparations, action at law shall be begun against
an immediate and urgent need to a point or points or within a territory
freight forwarders subject to this part within two years from the time the
having no carrier service capable of meeting such need, the Commis-
cause of action accrues, and not after, and for recovery of overcharges,
sion may, in its discretion and without hearings or other proceedings,
action at law shall be begun against freight forwarders subject SO this
grant temporary authority for such service by a common carrier by
part within three years from the time the cause of action accrues, and
water or a contract carrier by water, as the case may be. Such
not after, subject to paragraph (3) of this section, except that if
temporary authority shall be valid for such time as the Commission
claim for the overcharge has been presented in writing to the freight
shall specify but not for more than an aggregate of one hundred and
forwarder within the three-year period of limitation said period shall
eighty days, and shall create no presumption that corresponding
be extended to include six months from the time notice in writing is
permanent authority will be granted thereafter.
given by the freight forwarder to the claimant of disallowance of the
(b) Pending the determination of an application filed with the Com-
claim, or any part or parts thereof, specified in the notice.
mission under this Act for approval of a consolidation or merger of
(3) If on or before expiration of the three-year period of limitation
the properties of two or more water carriers, or of a purchase, lease,
in paragraph (2) a freight forwarder subject to this part begins action
or contract to operate the properties of one or more water carriers, the
under paragraph (1) for recovery of charges in respect of the same
Commission may, for good cause shown, and without hearings or
service, or, without beginning action, collects charges in respect of
other proceedings, grant temporary approval, for a period not ex-
that service, said period of limitation shall be extended to include
36
INTERSTATE COMMERCE ACT AMENDMENTS
INTERSTATE COMMERCE ACT AMENDMENTS
37
ninety days from the time such action is begun or such charges are
such person, his or its officers, agents, employees, and representatives from
collected by the freight forwarder.
further violation of such section or such rule, regulation, requirement, or
(4) The cause of action in respect of a shipment of property shall,
order; and enjoining upon it or them obedience thereto. A copy of any
for the purposes of this section, be deemed to accrue upon delivery
application for relief filed pursuant to this paragraph shall be served upon
or tender of delivery thereof by the freight forwarder, and not after.
the Commission and a certificate of such service shall appear in such appli-
(5) The term "reparations" as used in this section means damages
cation. The Commission may appear as of right in any such action. The
resulting from charges for transportation services to the extent that the
party who or which prevails in any such action may, in the discretion of the
Commission, upon complaint made as provided in section 406 of this
court, recover reasonable attorney's fees to be fixed by the court, in addition
part, finds them to have been unjust and unreasonable, or unjustly
to any costs allowable under the Federal Rules of Civil Procedure, and the
discriminatory or unduly preferential or unduly prejudicial.
the plaintiff instituting such action shall be required to give security, in
[(5)] (6) The term "overcharges" as used in this section shall be
such sum as the court deems proper, to protect the interests of the party or
deemed to mean charges for service in excess of those applicable thereto
parties against whom any temporary restraining order, temporary injunc-
under the tariffs lawfully on file with the Commission.
tive or other process is issued should it later be proven unwarranted by the
[(6)] (7) The provisions of this section shall apply only to cases
facts and circumstances. Nothing in this paragraph shall be construed to
in which the cause of action may accrue after the date of the enactment
deprive the Commission of its jurisdiction to interpret or construe permits,
of this section.
or rules and regulations issued by the Commission.
[(7)] (8) The provisions of this section 406a shall extend to and
embrace all transportation of property for or on behalf of the United
States in connection with any action brought before any court by or
against carriers subject to this part: Provided, however, That with
respect to such transportation of property for or on behalf of the
United States, the periods of limitation herein provided shall be
extended to include three years from the date of (A) payment of
charges for the transportation involved, or (B) subsequent refund for
overpayment of such charges, or (C) deduction made under section
322 of the Transportation Act of 1940 (49 U.S.C. 66), whichever is
later.
*
*
*
*
ENFORCEMENT AND PROCEDURE
SEC. 417. (a)
*
(b) (1) If any freight forwarder fails to comply with or operates in
violation of any provision of this part, or any rule, regulation, require-
ment, or order thereunder, or of any term or condition of any permit,
the Commission or the Attorney General of the United States (or, in
case of such an order, any party injured by the failure to comply
therewith or by the violation thereof) may apply to any district court
of the United States having jurisdiction of the parties for the enforce-
ment of such provision of this part or of such rule, regulation, require-
ment, order, term, or condition; and such court shall have jurisdiction
to enforce obedience thereto by a writ or writs of injunction or other
process, mandatory or otherwise, restraining such freight forwarder
and any officer, agent, employee, or representative thereof from further
violation of such provision of this part or of such rule, regulation,
requirement, order, term, or condition, and enjoining obedience
thereto.
(2) If any person operates in clear and patent violation of section 410
of this part, or any rule, regulation, requirement, or order thereunder,
any person injured thereby may apply to the district court of the United
States for any district where such person 80 violating operates, for the
enforcement of such section, or of such rule, regulation, requirement,
or order. The court shall have jurisdiction to enforce obedience thereto by a
writ of injunction or by other process, mandatory or otherwise, restraining
Committee
89TH CONGRESS
1ST SESSION
H. R. 5401
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 24, 1965
Mr. HARRIS introduced the following bill; which was referred to the Com-
mittee on Interstate and Foreign Commerce
A
BILL
To amend the Interstate Commerce Act SO as to strengthen and
improve the national transportation system, and for other
purposes.
1
Be it' enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That subsection (f) of section 205 of the Interstate Com-
4 merce Act (49 U.S.C. 305 (f) ) is amended by inserting after
5 the second sentence thereof the following new sentence: "In
6 addition, the Commission is authorized to make cooperative
7 agreements with the various States to enforce the economic
8 and safety laws and regulations of the various States and the
9 United States concerning highway transportation."
10
SEC. 2. Subsection (b) of section 202 of the Interstate
I
2
3
1 Commerce Act (49 U.S.C. 302 (b)) is amended by insert-
1 may be determined and promulgated for each of the classes
2 ing "(1)" immediately after "(b)" and by adding at the
2 of carriers as differences in their operations may warrant. In
3 end thereof the following:
3 determining or amending such standards, the national orga-
4
" (2) The requirement by a State that any motor car-
4 nization of the State commissions shall consult with the Com-
5 rier operating in interstate or foreign commerce within the
5 mission and with representatives of motor carriers subject to
6 borders of that State register its certificate of public conven-
6 State registration requirements. To the extent that any
7 ience and necessity or permit issued by the Commission
7 State requirements for registration of motor carrier certifi-
8 shall not constitute an undue burden on interstate commerce
8 cates or permits issued by the Commission impose obligations
9 provided that such registration is accomplished in accordance
9 which are in excess of the standards or amendments thereto
10 with standards, or amendments thereto, determined and offi-
10 promulgated under this paragraph, such excessive require-
11 cially certified to the Commission by the national organiza-
11 ments shall, on the effective date of such standards, consti-
12 tion of the State commissions, as referred to in section 205 (f)
12 tute an undue burden on interstate commerce. If the national
13 of this Act, and promulgated by the Commission. As SO
13 organization of the State commissions fails to determine and
14 certified, such standards, or amendments thereto, shall be
14 certify to the Commission such standards within eighteen
15 promulgated forthwith by the Commission and shall become
15 months from the effective date of the paragraph, or if that
16 effective five years from the date of such promulgation. As
16 organization at any time determines to withdraw in their
17 used in this paragraph, 'standards or amendments thereto'
17 entirety standards previously determined or promulgated, it
18 shall mean specification of forms and procedures required to
18 shall be the duty of the Commission, within one year there-
19 evidence the lawfulness of interstate operations of a carrier
19 after, to devise and promulgate such standards, and to review
20 within a State by (a) filing and maintaining current records
20 from time to time the standards SO established and make such
21 of the certificates and permits issued by the Commission, (b)
21 amendments thereto as it may deem necessary, in accordance
22 registering and identifying vehicles as operating under such
22 with the foregoing requirements of this paragraph. Nothing
23 certificates and permits, (c) filing and maintaining evidence
23 in this paragraph shall be construed to deprive the Commis-
24 of currently effective insurance, and (d) filing designations
24 sion, when there is a reasonable question of interpretation or
25 of local agents for service of process. Different standards
25 construction, of its jurisdiction to interpret or construe cer-
4
5
1 tificates of public convenience and necessity, or permits, or
1 ableness of rates, fares, or charges and the discriminatory
2 rules and regulations issued by the Commission, nor to au-
2 character thereof), or any lawful rule, regulation, require-
3 thorize promulgation of standards in conflict with any rule
3 ment, or order promulgated by the Commission, or of any
4 or regulation of the Commission."
4 term or condition of any certificate or permit, the Commis-
5
SEC. 3. Subsection (h) of section 222 of the Inter-
5 sion or its duly authorized agent may apply for the enforce-
6 state Commerce Act (49 U.S.C. 322 (h) ) is amended by
6 ment thereof to the district court of the United States for any
7 striking out the words "shall forfeit to the United States the
7 district where such motor carrier or broker operates. In any
8 sum of $100 for each such offense, and, in case of a continu-
8 proceeding instituted under the provisions of this subsection,
9 ing violation, not to exceed $50 for each additional day dur-
9 any person, or persons, acting in concert or participating
10 ing which such failure or refusal shall continue" in the first
10 with such carrier or broker in the commission of such vio-
11 sentence therein and by inserting in lieu thereof the follow-
11 lation may, without regard to his or their residence, be
12 ing: "or who shall fail or refuse to comply with the pro-
12 included, in addition to the motor carrier or broker, as a
13 visions of section 203 (c) or section 206 (a) (1) or section
13 party, or parties, to the proceeding. The court shall have
14 209 (a) (1) shall forfeit to the United States not to exceed
14 jurisdiction to enforce obedience to any such provision of
15 $500 for each such offense, and, in case of a continuing
15 this part, or of such rule, regulation, requirement, order,
16 violation not to exceed $250 for each additional day during
16 term, or condition by a writ of injunction or by other process,
17 which such failure or refusal shall continue: Provided, how-
17 mandatory or otherwise, restraining such carrier or broker,
18 ever, That nothing in this section shall deprive the Commis-
18 his or its officers, agents, employees, and representatives,
19 sion of its primary jurisdiction to determine the validity of
19 and such other person, or persons, acting in concert or partic-
20 an operation in dispute under the primary business test."
20 ipating with such carrier or broker, from further violation
21
SEC. 4. Subsection (b) of section 222 of the Interstate
21 of such provision of this part, or of such rule, regulation,
22 Commerce Act (49 U.S.C. 322 (b) is amended to read
22 requirement, order, term, or condition and enjoining upon
23 as follows:
23 it or them obedience thereto. Process in such proceedings
24
" (b) (1) If any motor carrier or broker operates in vio-
24 may be served upon such motor carrier, or broker, or upon
25 lation of any provision of this part (except as to the reason-
H.R. 5401-2
6
7
1 such person, or persons, acting in concert or participating
1 prevails in any such action may, in the discretion of the
2 therewith in the commission of such violation, without regard
2 court, recover reasonable attorney's fees to be fixed by the
3 to the territorial limits of the district or of the State in
3 court, in addition to any costs allowable under the Federal
4 which the proceeding is instituted."
4 Rules of Civil Procedure, and the plaintiff instituting such
5
SEC. 5. Subsection (b) of section 222 of the Interstate
5 action shall be required to give security, in such sum as the
6 Commerce Act (49 U.S.C. 322 (b) ) (as amended by section
6 court deems proper, to protect the interests of the party or
7 4 of this Act) is further amended by adding at the end
7 parties against whom any temporary restraining order, tem-
8 thereof the following:
8 porary injunctive, or other process is issued should it later
9
" (2) If any person operates in clear and patent viola-
9 be proven unwarranted by the facts and circumstances.
10 tion of any provisions of section 203 (c), 206, 209, or 211
10 Nothing in this paragraph shall be construed to deprive the
11 of this part, or any rule, regulation, requirement, or order
11 Commission of its jurisdiction to interpret or construe certif-
12 thereunder, any person injured thereby may apply to the dis-
12 icates of public convenience and necessity or permits, or rules
13 trict court of the United States for any district where such
13 and regulations issued by the Commission, or deprive the
14 person SO violating operates, for the enforcement of such sec-
14 Commission of its primary jurisdiction to determine the valid-
15 tion, or of such rule, regulation, requirement, or order. The
-
15 ity of an operation in dispute under the primary business
16 court shall have jurisdiction to enforce obedience thereto by
16
test."
17 a writ of injunction or by other process, mandatory or other-
17
SEC. 6. (a) Paragraph (2) of section 204a of the
18 wise, restraining such person, his or its officers, agents, em-
18 Interstate Commerce Act (49 U.S.C. 304a) is amended to
19 ployees, and representatives from further violation of such
19 read as follows:
20 section or of such rule, regulation, requirement, or order; and
20
(2) For recovery of reparations, action at law shall
21 enjoining upon it or them obedience thereto. A copy of any
21 be begun against common carriers by motor vehicle subject
22 application for relief filed pursuant to this paragraph shall be
22 to this part within two years from the time the cause of ac-
23 served upon the Commission and a certificate of such service
23 tion accrues, and not after, and for recovery of overcharges,
24 shall appear in such application. The Commission may ap-
24 action at law shall be begun against common carriers by
25 pear as of right in any such action. The party who or which
25 motor vehicle subject to this part within three years from the
9
8
1 time the cause of action accrues, and not after, subject to
1 shall be begun against freight forwarders subject to this part
2 paragraph (3) of this section, except that if claim for the
2 within three years from the time the cause of action accrues,
3
3 and not after, subject to paragraph (3) of this section,
overcharge has been presented in writing to the carrier within
4 the three-year period of limitation said period shall be ex-
4 except that if claim for the overcharge has been presented in
5 tended to include six months from the time notice in writing
5 writing to the freight forwarder within the three-year period
6 is given by the carrier to the claimant of disallowance of the
6 of limitation said period shall be extended to include six
7 claim, or any part or parts thereof, specified in the notice."
7 months from the time notice in writing is given by the freight
8
8 forwarder to the claimant of disallowance of the claim, or any
(b) Section 204a of the Interstate Commerce Act (49
9 U.S.C. 304a) is amended by redesignating paragraphs (5),
9 part or parts thereof, specified in the notice."
10
10 (6), and (7) as paragraphs (6), (7), and (8), respec-
(b) Section 406a of the Interstate Commerce Act (49
11 tively, and by inserting immediately after paragraph (4)
11 U.S.C. 1006a) is amended by redesignating paragraphs
12 thereof the following:
12 (5), (6), and (7) as paragraphs (6), (7), and (8), re-
13
" (5) The term 'reparations' as used in this section
13 spectively, and by inserting immediately after paragraph
14 means damages resulting from charges for transportation
14 (4) thereof the following:
15
15 services to the extent that the Commission, upon complaint
" (5) The term 'reparations' as used in this section
16 made as provided in section 216 (e) of this part, finds them
16 means damages resulting from charges for transportation
17 to have been unjust and unreasonable, or unjustly
17 services to the extent that the Commission, upon complaint
18 discriminatory or unduly preferential or unduly prejudicial."
18 made as provided in section 406 of this part, finds them to
19
19 have been unjust and unreasonable, or unjustly discrimina-
SEC. 7. (a) Paragraph (2) of section 406a of the Inter-
20 state Commerce Act (49 U.S.C. 1006a) is amended to
20 tory or unduly preferential or unduly prejudicial."
21
21
read as follows:
SEC. 8. The amendments made by this Act shall take
22
" (2) For recovery of reparations, action at law shall
22 effect on the ninetieth day after the date of enactment of this
23 Act.
23 be begun against freight forwarders subject to this part
24 within two years from the time the cause of action accrues,
25 and not after, and for recovery of overcharges, action at law
89TH CONGRESS
1ST SESSION
H. R. 5401
A BILL
To amend the Interstate Commerce Act SO as to
strengthen and improve the national trans-
portation system, and for other purposes.
By Mr. HARRIS
FEBRUARY 24, 1965
Referred to the Committee on Interstate and Foreign
Commerce
89TH CONGRESS
1ST SESSION
H. R. 5868
q.c.c.
IN THE HOUSE OF REPRESENTATIVES
MARCH 5, 1965
Mr. HARRIS introduced the following bill; which was referred to the Com-
mittee on Interstate and Foreign Commerce
A BILL
To amend section 22 of the Interstate Commerce Act.
1
Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That section 22 (1) of the Interstate Commerce Act is
4 amended by striking out all down through "mileage, excur-
5 sion, or commutation passenger tickets;" and by inserting
6 in lieu thereof the following: "That nothing in this part
7 shall prevent the carriage, storage, or handling of property
8 free or at reduced rates for the United States, State, or
9 municipal governments either during time of war or na-
10 tional emergency as declared by Congress or the President
11 or when such property consists of (a) ordinary livestock,
I
2
1 fish (including shellfish), or agricultural (including horti-
2 cultural) commodities (not including manufactured products
3 thereof), as such property is defined in section 203 (b) (6)
4 of part II, or (b) commodities in bulk which are loaded
5 and carried without wrappers or containers and received
6 and delivered by the carrier without transportation mark or
7 count; nothing in this part shall prevent the carriage, storage,
8 or handling of property free or at reduced rates for charitable
9 purposes, or to or from fairs and expositions for exhibition
10 thereat, or the free carriage of destitute and homeless persons
11 transported by charitable societies, and the necessary agents
12 employed in such transportation, or the transportation of
13 persons for the United States Government free or at reduced
14 rates during time of war or national emergency as de-
15 clared by Congress or the President, or the issuance of mile-
16 age, excursion, or commutation passenger tickets;".
89TH CONGRESS
1ST SESSION
H. R. 5868
A BILL
To amend section 22 of the Interstate
Commerce Act.
By Mr. HARRIS
MARCH 5, 1965
Referred to the Committee on Interstate and Foreign
Commerce
89TH CONGRESS
1ST SESSION
H.R.6472
IN THE HOUSE OF REPRESENTATIVES
MARCH 18, 1965
Mr. DULSKI introduced the following bill; which was referred to the Com-
mittee on Post Office and Civil Service
A
BILL
To provide for the transportation of mail by motor vehicles.
1
Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 That, in arranging for the transportation of mail, the
4 Postmaster General, consistent with the national trans-
5 portation policy (49 U.S.C. 1), shall use the services and
6 facilities of all regulated modes of transportation including
7 those of regulated carriers of property by motor vehicle to
8 the maximum extent they are available and adequately meet
9 the needs of the postal service for safe, economical, efficient,
10 and expeditious movement of mail.
11
SEC. 2. As used in this Act-
I
2
3
1
(a) "Commission" means the Interstate Commerce
1 declared to be transportation of property in interstate com-
2 Commission of the United States.
2 merce.
3
(b) "Mail" or "mail matter" means United States
3
SEC. 4. Within ninety days after the effective date of this
4 mail of any class, and foreign mails in transit across the
4 Act, the Postmaster General shall file with the Commission
5 territory of the United States.
5 a statement or statements of services for the utilization of
6
(c) "Mail transportation" includes services and the use
6 regulated carriers for mail transportation, and may there-
7 of facilities in conjunction with the transportation of mail.
7 after file such additional statements of services as he may
8
(d) For purposes of this Act, a "regulated carrier" is
8 deem necessary or advisable. Each statement of service
9
(a) any person who holds a certificate of public convenience
9 shall set forth the Postmaster General's requirements for
10 and necessity or certificate registration from the Commis-
10 mail transportation by regulated carriers, and the units of
11 sion, or from a regulatory body of a State, territory, or posses-
11 service upon which compensation shall be based, and such
12 sion of the United States, for the transportation of property
12 other information which may be pertinent and material to
13 by motor vehicles in intrastate, interstate, or foreign com-
13 such mail transportation and the establishment of rates of
14 merce for compensation (except an express company to the
14
compensation therefor.
15 extent that it is subject to part I of the Interstate Commerce
15
SEC. 5. (a) The Commission shall promptly give notice
16 Act) as a common carrier or, (b) any person who holds a
16
to the public of the filing of statements of service, and under
17 permit from the Commission or from a regulatory body of a
17 such procedures as the Commission shall specify the regu-
18 State, territory, or possession for the transportation of prop-
18 lated carriers shall respond. The response of the regulated
19 erty in intrastate, interstate, or foreign commerce for compen-
19
carriers shall, among other things, include their rates for
20 sation as a contract carrier or, (c) any person which is
20 mail transportation. The Postmaster General shall pay the
21
21
exempt from certain regulation by section 203 (b) (8) of the
regulated carriers at their initial rates until such time as other
22
Interstate Commerce Act or under the regulatory law of any
22 rates are established by the Commission pursuant to this
23 State, territory, or possession of the United States.
23
section.
24
24
SEC. 3. For purposes of this Act, mail transportation is
(b) The Commission shall promptly commence an in-
4
5
1 vestigation to determine and fix the fair and reasonable rates
1 manner, under the conditions, and within the services pre-
2 of compensation for mail transportation by regulated car-
2 scribed in accordance with applicable statements of services
3 riers; however, pending the establishment of rates by the
3 as approved by the Commission over the route or routes or
4 Commission, the Commission shall not suspend any initial
4 within the territory for which it has operating authority or
5 rates filed by regulated carriers applicable to mail trans-
5 if the carrier is exempt under section 203 (b) (8) of the
6 portation.
6 Interstate Commerce Act, in the area exempted.
7
(c) In any proceeding under this Act, the Commission
7
(b) Any regulated carrier may apply to the Postmaster
8 shall hold hearings to the same extent and with the same
8 General for relief from the requirements of this section by
9 powers and authority as provided by law for other hearings
9 reason of conditions which impose hardship upon it. The
10 between carriers and shippers.
10 Postmaster General shall grant such application.
11
SEC. 6. At any time after six months from the entry of
11
SEC. 9. It shall be unlawful for any regulated carrier to
12 an order stating the Commission's determination, the Post-
12 fail or refuse to perform the services set forth in the appli-
13 master General, or an interested regulated carrier, or group
13 cable statement of services unless such failure is caused by
14 of such carriers, may apply for a reexamination of the terms
14 unavoidable accident, or other circumstances beyond the
15 of such order, and substantially similar proceedings as have
15 control of the carrier. For refusal to perform service, the
16 theretofore been had shall be followed with respect to the
16 Postmaster General may impose a penalty not in excess of
17 rates of compensation and services covered by the applica-
17 three times the compensation applying to the transportation
18 tion. At the conclusion of the hearing, the Commission shall
18 with respect to which the violation occurred. For all other
19 enter an order stating its determination.
19 violations, the Postmaster General may impose a penalty
20
SEC. 7. The Postmaster General shall pay the regulated
20 not in excess of the reasonable value of any mail matter lost,
21 carriers the rates of compensation SO determined and fixed
21 destroyed, or damaged. The Postmaster General may remit
22 at such times as named in the order.
22 the whole or any part of any penalty. In case of disagree-
23
SEC. 8. (a) When requested by the Postmaster General,
23 ment with respect to the carrier's liability or amount of
24 every regulated carrier, except as provided by subsection
24 liability under this section, either party may file a petition
25 (b) of this section, shall perform mail transportation in the
25 with the Commission requesting it to hold a hearing and the
6
1 Commission shall issue an order determining the liability or
2 amount of liability of the carrier.
3
SEC. 10. No specific authority to transport mail shall be
4 required to be obtained by any regulated carrier from the
5 Commission, or from a regulatory body of any State, terri-
6 tory or possession of the United States, and no rate of com-
7 pensation for such transportation shall be subject to control
8 by any such regulatory body except as herein provided.
9
SEC. 11. Nothing herein contained shall prevent the
10 Postmaster General from entering into star-route contracts
11 under existing provisions of law nor shall anything herein
12 impair or suspend contracts for the transportation of mail
13 by persons that are now in force and effect.
14
SEC. 12. Any provision of law inconsistent with the pro-
15 visions of this Act is hereby repealed.
89TH CONGRESS
1ST SESSION
H. R. 6472
A BILL
To provide for the transportation of mail by
motor vehicles.
By Mr. DULSKI
MARCH 18, 1965
Referred to the Committee on Post Office and Civil
Service