§10704. Authority and criteria: rates, classifications, rules, and practices prescribed by Interstate Commerce Commission

(a)(1) When the Interstate Commerce Commission, after a full hearing, decides that a rate charged or collected by a carrier for transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title, or that a classification, rule, or practice of that carrier, does or will violate this subtitle, the Commission may prescribe the rate (including a maximum or minimum rate, or both), classification, rule, or practice to be followed. The Commission may order the carrier to stop the violation. When a rate, classification, rule, or practice is prescribed under this subsection, the affected carrier may not publish, charge, or collect a different rate and shall adopt the classification and observe the rule or practice prescribed by the Commission.

(2) The Commission shall maintain and revise as necessary standards and procedures for establishing revenue levels for rail carriers providing transportation subject to its jurisdiction under that subchapter that are adequate, under honest, economical, and efficient management, to cover total operating expenses, including depreciation and obsolescence, plus a reasonable and economic profit or return (or both) on capital employed in the business. The Commission shall make an adequate and continuing effort to assist those carriers in attaining revenue levels prescribed under this paragraph. However, a rate, classification, rule, or practice of a rail carrier may be maintained at a particular level to protect the traffic of another carrier or mode of transportation only if the Commission finds that the rate or classification, or rule or practice related to it, reduces or would reduce the going concern value of the carrier charging the rate. Revenue levels established under this paragraph should-

(A) provide a flow of net income plus depreciation adequate to support prudent capital outlays, assure the repayment of a reasonable level of debt, permit the raising of needed equity capital, and cover the effects of inflation; and

(B) attract and retain capital in amounts adequate to provide a sound transportation system in the United States.

(3) The Commission shall conclude a proceeding under paragraph (2) of this subsection within 180 days after the effective date of the Staggers Rail Act of 1980 and thereafter as necessary.

(4) On the basis of the standards and procedures under paragraph (2) of this subsection, the Commission shall, within 180 days after the effective date of the Staggers Rail Act of 1980 and on an annual basis thereafter, determine which rail carriers are earning adequate revenues.

(b)(1) When the Commission decides that a rate charged or collected by-

(A) a motor common carrier for providing transportation subject to its jurisdiction under subchapter II of chapter 105 of this title by itself, with another motor common carrier, with a rail, express, or water common carrier, or any of them;

(B) a water common carrier for providing transportation subject to its jurisdiction under subchapter III of chapter 105 of this title; or

(C) a household goods freight forwarder for providing service subject to its jurisdiction under subchapter IV of chapter 105 of this title;

or that a classification, rule, or practice of that carrier, does or will violate this chapter, the Commission shall prescribe the rate (including a maximum or minimum rate, or both), classification, rule, or practice to be followed.

(2)(A) When prescribing a rate, classification, rule, or practice for transportation or service by common carriers other than by rail carrier, the Commission shall consider, among other factors, the effect of the prescribed rate, classification, rule, or practice on the movement of traffic by that carrier.

(B) When prescribing a rate, classification, rule, or practice for transportation or service by common carriers other than by rail carrier or motor carrier, the Commission shall consider, among other factors, the need for revenues that are sufficient, under honest, economical, and efficient management, to let the carrier provide that transportation or service.

(3) If the carrier is a motor or water common carrier or a household goods freight forwarder, the Commission shall also consider the need, in the public interest, of adequate and efficient transportation or service by that carrier at the lowest cost consistent with providing that transportation or service.

(4) If the carrier is a motor common carrier or a household goods freight forwarder, the Commission shall also consider the inherent advantages of transportation by motor common carrier or the inherent nature of household goods freight forwarding, respectively.

(c)(1) When the Commission finds that a minimum rate of a contract carrier for transportation subject to the jurisdiction of the Commission under subchapter II or III of chapter 105 of this title, or a rule or practice related to the rate or the value of the service under it, violates this chapter or the transportation policy of section 10101 of this title, the Commission may prescribe the minimum rate, rule, or practice for the carrier that is desirable in the public interest and will promote that policy. In prescribing the rate, the Commission may not give a motor or water contract carrier an advantage or preference in competition with a motor or water common carrier, respectively, if an advantage or preference is unreasonable or inconsistent with the public interest and the transportation policy of section 10101 of this title.

(2) When prescribing a minimum rate, or rule or practice related to a rate, for a contract carrier, the Commission shall consider-

(A) the cost of the transportation provided by the carrier; and

(B) the effect of a prescribed minimum rate, or rule or practice, on the movement of traffic by that carrier.

(d) In a proceeding involving competition between carriers of different modes of transportation subject to this subtitle, except rail carriers, the Commission, in determining whether a rate is less than a reasonable minimum rate, shall consider the facts and circumstances involved in moving the traffic by the mode of carrier to which the rate is applicable. Subject to the transportation policy of section 10101 of this title, rates of a carrier may not be maintained at a particular level to protect the traffic of another mode of transportation.

(e) In a proceeding involving a proposed increase or decrease in rail carrier rates, the Commission shall specifically consider allegations that the increase or decrease would (1) change the rate relationships between commodities, ports, places, regions, areas, or other particular descriptions of traffic (without regard to previous Commission consideration or approval of those relationships), and (2) have a significant adverse effect on the competitive position of shippers or consignees served by the rail carrier proposing the increase or decrease. The Commission shall investigate to determine whether the change or effect violates this subtitle when it finds that those allegations are substantially supported on the record. The investigation may be made either before or after the proposed increase or decrease becomes effective and either in that proceeding or in another proceeding.

(f) The Commission may begin a proceeding under this section on its own initiative or on complaint. A complaint under subsection (a) of this section must be made under section 11701 of this title, but the proceeding may also be in extension of a complaint pending before the Commission. A complaint under subsection (c) of this section must contain a full statement of the facts and the reasons for the complaint and must be made under oath.

( Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1373 ; Pub. L. 96–296, §13(b), July 1, 1980, 94 Stat. 803 ; Pub. L. 96–448, title II, §205(b), Oct. 14, 1980, 94 Stat. 1906 ; Pub. L. 97–261, §9(b), Sept. 20, 1982, 96 Stat. 1109 ; Pub. L. 99–521, §7(b), Oct. 22, 1986, 100 Stat. 2994 .)

Historical and Revision Notes

Revised Section	Source (U.S. Code)	Source (Statutes at Large)
10704(a)(1)	49:15(1) (less words between 2d and 5th commas).	Feb. 4, 1887, ch. 104, §15(1), 24 Stat. 384 ; June 29, 1906, ch. 3591, §4, 34 Stat. 589 ; June 18, 1910, ch. 309, §12, 36 Stat. 551 ; restated Feb. 28, 1920, ch. 91, §418, 41 Stat. 484 ; June 19, 1934, ch. 652, §602(b), 48 Stat. 1102 ; Aug. 9, 1935, ch. 498, §1, 49 Stat. 543 ; Sept. 18, 1940, ch. 722, §10(a), 54 Stat. 911 .
10704(a)(2)	49:15a(1), (4).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §15a(1)–(5); added Feb. 28, 1920, ch. 91, §422, 41 Stat. 488 ; June 16, 1933, ch. 91, §205, 48 Stat. 220 ; Aug. 12, 1958, Pub. L. 85–625, §6, 72 Stat. 572 ; Feb. 5, 1976, Pub. L. 94–210, §§203(b), 205, 90 Stat. 39 , 41.
10704(b)(1)	49:316(e) (2d sentence less words between 2d and 3d commas, 2d cl., and proviso).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §216(e) (2d sentence less 2d cl., and less proviso), (i); added Aug. 9, 1935, ch. 498, §1, 49 Stat. 558 , 560; Sept. 18, 1940, ch. 722, §22(d), 54 Stat. 924 .
	49:907(b) (less words between 2d and 3d commas).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §307(b), (f), (h); added Sept. 18, 1940, ch. 722, §201, 54 Stat. 937–939 .
	49:1006(b) (less words between 2d and 3d commas).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §406(b), (d); added May 16, 1942, ch. 318, §1, 56 Stat. 288 .
10704(b) (2)–(4)	49:15a(2).
	49:316(i).
	49:907(f).
	49:1006(d).
10704(c)	49:318(b) (less 1st sentence words between 2d and 3d commas, and less 3d sentence).	Feb. 4, 1887, ch. 104, 24 Stat. 379 , §218(b); added Aug. 9, 1935, ch. 498, §1, 49 Stat. 562 ; restated Sept. 18, 1940, ch. 722, §23(b), 54 Stat. 925 .
	49:907(h) (less 1st sentence words between 2d and 3d commas, and less last sentence).
10704(d)	49:15a(3).
10704(e)	49:15a(5).
10704(f)	49:15(1) (words between 2d and 5th commas).
	49:316(e) (2d sentence words between 2d and 3d commas).
	49:318(b) (1st sentence words between 2d and 3d commas and last sentence).
	49:907(b) (words between 2d and 3d commas), (h) (1st sentence words between 2d and 3d commas and last sentence).
	49:1006(b) (words between 2d and 3d commas).

In this section, the text of 49:15a(1) is omitted as unnecessary in view of the definition of "rate" in section 10102 of the revised title and incorporation of the words "classification, rule, . . . practice" in the section. The word "rule" is substituted for "regulation" when referring to carriers for consistency. The words "individual and joint rate" are omitted as included in the word "rate".

In subsection (a)(1), the word "decides" is substituted for "is of the opinion" as being more appropriate. The word "demanded" is omitted as surplus. The word "transportation" is substituted for "the transportation of persons or property, as defined in section 1 of this title" for consistency in view of the definition of "transportation" in section 10102 of this title. The words "does or will violate this subtitle" are substituted for "is or will be unjust or unreasonable or unjustly discriminatory or unduly preferential or prejudicial, or otherwise in violation of any of the provisions of this chapter" for clarity since the criteria for lawfulness are consolidated in this chapter and in chapter 119 of the revised title. The word "may" is substituted for "is authorized and empowered" as being more appropriate. The words "to determine" are omitted as surplus. The words "just and reasonable" are omitted as unnecessary in view of section 10701 of the revised title. The word "stop" is substituted for "cease and desist" to eliminate redundancy. The words "to the extent to which the Commission finds that the same does or will exist" are omitted as surplus since section 10321 of the revised title requires the Commission to carry out the subtitle. The words "or in excess of the maximum or less than the minimum so prescribed" are omitted as unnecessary in view of the restatement of section 49:15(1) in this subsection.

In subsection (a)(2), the words "for rail carriers" are substituted for "With respect to common carriers by railroad" for consistency. The words after the 2d comma and before the beginning parentheses in 49:15a(4) are omitted as executed. The word "maintain" is substituted for "and thereafter revise and maintain" to eliminate redundancy. The word "reasonable" is substituted for "fair, reasonable" as being inclusive. See the revision note to section 10101 of the revised title. The words "maintained at" are substituted for "be held up to" for clarity.

In subsection (b)(2), the words "after hearing" are omitted as unnecessary in view of subchapter II of chapter 103 of the revised title and subchapter II of chapter 5 of title 5. The words "lawful . . . thereafter to be made effective" are omitted as surplus. The words "when prescribing" are substituted for "In the exercise of its power to prescribe" for clarity. The words "just and reasonable" are omitted as unnecessary. The words "shall consider" are substituted for "shall give due consideration to" for clarity. The words between the 1st and last semicolons in 49:15a(2) (1st sentence) are omitted as repealed by section 205 of the Railroad Revitalization and Regulatory Reform Act of 1976 (90 Stat. 41).

In subsection (c), the words "transportation policy of section 10101 of this title" are substituted for "national transportation policy declared in this Act" for consistency. The word "violates" is substituted for "contravenes" and "in contravention" as being more appropriate. The words "as in its judgment may be" are omitted as surplus. The word "necessary" is omitted as surplus.

In subsection (d), the words "maintained at" are substituted for "held up to" for clarity. The word "unreasonable" is substituted for "undue" for clarity. See the revision note to section 10101 of the revised title. The last sentence of 49:15a(3) is omitted as unnecessary in view of the restatement.

In subsection (e), the word "places" is substituted for "points" for consistency. The words "without regard to" are substituted for "whether or not" for clarity. The words "rail carrier" are substituted for "railroad" for clarity. The words "to determine whether the change or effect violates this subtitle" are substituted for "lawfulness of such change or effect" for consistency.

References in Text

The effective date of the Staggers Rail Act of 1980, referred to in subsec. (a)(3), (4), probably means Oct. 1, 1980, the general effective date of Pub. L. 96–448. See section 710 of Pub. L. 96–448, set out as an Effective Date of 1980 Amendment note under section 10101 of this title.

Amendments

1986-Subsec. (b)(1)(C), (3), (4). Pub. L. 99–521 inserted "household goods" before "freight forwarder" and "freight forwarding" wherever appearing.

1982-Subsec. (b)(2)(B). Pub. L. 97–261 struck out "of property" after "motor carrier".

1980-Subsec. (a)(2). Pub. L. 96–448, §205(b)(1), inserted "and revise as necessary" after "shall maintain".

Subsec. (a)(3), (4). Pub. L. 96–448, §205(b)(2), added pars. (3) and (4).

Subsec. (b)(2). Pub. L. 96–296 revised par. (2) to exclude from provisions of subpar. (B) motor carriers of property.

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–521 effective 60 days after Oct. 22, 1986, see section 15 of Pub. L. 99–521, set out as a note under section 10102 of this title.

Effective Date of 1982 Amendment

Amendment by Pub. L. 97–261 effective on 60th day after Sept. 20, 1982, see section 31(a) of Pub. L. 97–261, set out as a note under section 10101 of this title.

Effective Date of 1980 Amendment

Amendment by Pub. L. 96–448 effective Oct. 1, 1980, see section 710(a) of Pub. L. 96–448, set out as a note under section 10101 of this title.

Section Referred to in Other Sections

This section is referred to in sections 10701a, 10705a, 10707a, 11705 of this title.