§10726. Long and short haul transportation

(a)(1) A carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under subchapter I or III of chapter 105 of this title (except an express carrier) may not charge or receive more compensation for the transportation of property of the same kind or of passengers-

(A) for a shorter distance than for a longer distance over the same line or route in the same direction (the shorter distance being included in the longer distance); or

(B) under a through rate than under the total of the intermediate rates it may charge or receive under this chapter.

This paragraph does not authorize a carrier to charge or receive equal compensation for transportation over a shorter distance than a longer distance.

(2) Notwithstanding paragraph (1) of this subsection, a carrier operating over a circuitous line or route to or from a place in competition with another carrier of the same type that operates over a more direct line or route may establish a rate (otherwise complying with this chapter) for that transportation to meet the rate of the carrier operating over the more direct line or route. A rate established for transportation over a circuitous route under this subsection is not evidence of the compensatory character of rates in other proceedings.

(b) In special cases, the Commission may authorize a carrier to charge less for transportation over a longer distance than it charges for transportation over a shorter distance. The Commission may prescribe the extent to which a carrier authorized to charge less under this subsection may be granted relief from subsection (a) of this section. However, the Commission may not authorize a rate-

(1) to or from the more distant place unless it is reasonably compensatory; or

(2) because of potential water competition not actually in existence.

[(c) Repealed. Pub. L. 96–448, title II, §220, Oct. 14, 1980, 94 Stat. 1928 .]

(d) The Commission shall begin a proceeding under subsection (b) of this section on application of a carrier. A carrier may file a proposed rate with its application, and if the application is approved, the Commission shall allow the rate to become effective one day after the approval becomes effective.

( Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1387 ; Pub. L. 96–448, title II, §220, Oct. 14, 1980, 94 Stat. 1928 .)

In subsection (a), the words "A carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under subchapter I or III of chapter 105 of this title" are substituted for "any common carrier subject to this chapter or chapter 12 of this title" to conform to the revised title. The words "except an express carrier" are substituted for 49:4(1) (4th proviso) for clarity. The words "more compensation" are substituted for "any greater compensation in the aggregate" for clarity and to eliminate redundancy. The words "same kind" are substituted for "like kind" for clarity. The words "the total of the intermediate rates it may charge or receive under this chapter" are substituted for "than the aggregate of the intermediate rates subject to the provisions of this chapter or chapter 12 of this title" for clarity. The words "This paragraph does not authorize a carrier to charge or receive equal compensation" are substituted for "This shall not be construed as authorizing any common carrier within the terms of this chapter or chapter 12 of this title to charge or receive as great compensation" for clarity.

In subsection (b), the words "Notwithstanding paragraph (1) of this subsection" are inserted for clarity. The words "otherwise complying with this chapter" are substituted for "subject only to the standards of lawfulness set forth in other provisions of this chapter or chapter 12 of this title" for clarity and to conform to this revised title. The words "another carrier of the same type" are substituted for "such carrier" for clarity. The words "and after investigation" are omitted as surplus. The words "transportation over a longer distance than . . . for transportation over a shorter distance" are substituted for "for longer than for shorter distances for the transportation of passengers or property" for clarity. The words "from time to time" are omitted as surplus. The words "a carrier authorized to charge less under this subsection" are substituted for "such designated carriers" for clarity. The words "may be granted relief from subsection (a) of this section" are substituted for "may be relieved from the operation of the foregoing provisions of this section" for clarity and to conform to the revised title. The words "but in exercising the authority conferred upon it in this proviso" are omitted as surplus. The words "may not authorize a rate" are substituted for "shall not permit the establishment of any charge" for clarity. The word "place" is substituted for "point" for consistency. The words "unless it is reasonably compensatory" are substituted for "that is not reasonably compensatory for the service performed" for clarity. The words "because of" are substituted for "on account of" for clarity. The word "merely" is omitted as surplus.

In subsection (c), the words "A rail carrier that reduces a rate for the transportation of property in competition with a water route" are substituted for "wherever a carrier by railroad shall in competition with a water route or routes reduce the rates on the carriage of any species of freight to or from competitive points" for clarity. The words "may increase the rate only if" are substituted for "it shall not be permitted to increase such rate unless" for clarity. The words "after a proceeding" are substituted for "after hearing" for consistency. The words "because of a change in conditions" are substituted for "rests upon changed conditions" for clarity.

In subsection (d), the words "A carrier may file a proposed rate" are substituted for "That tariffs proposing rates . . . may be filed" for clarity. The words "if the application is approved" are substituted for "in the event such application is approved" for clarity. The words "shall allow the rate to become effective one day after the approval becomes effective" are substituted for "shall permit such tariffs to become effective upon one day's notice" for clarity.

Amendments

1980-Subsec. (c). Pub. L. 96–448 struck out subsec. (c) which provided that a rail carrier that reduced a rate for transportation of property in competition with a water route to or from competitive places could increase the rate only if, after a proceeding, the Commission found that the increase was proposed because of a change in conditions other than the elimination of water competition.

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 10705a, 10711 of this title.