§11321. Limitation on ownership of certain water carriers

(a)(1) Notwithstanding sections 11343 and 11344 of this title, a carrier, or a person controlling, controlled by, or under common control with a rail, express, sleeping car, or pipeline carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under subchapter I of chapter 105 of this title may not own, operate, control, or have an interest in a water common carrier or vessel carrying property or passengers on a water route with which it does or may compete for traffic.

(2) The Commission may decide, after a full hearing, questions of fact related to competition or the possibility of competition under this subsection on application of a carrier. A carrier may file an application to determine whether an existing service violates this subsection and may request permission to continue operation of a vessel or that action be taken under subsection (b) of this section. The Commission may begin a proceeding under this subsection on its own initiative or on application of a shipper to investigate the operation of a vessel used by a carrier providing transportation subject to the jurisdiction of the Commission under subchapter I of that chapter if the carrier has not applied to the Commission and had the question of competition or the possibility of competition determined under this subsection.

(b) Notwithstanding subsection (a) of this section, the Commission may authorize a carrier providing transportation subject to the jurisdiction of the Commission under that subchapter to own, operate, control, or have an interest in a water common carrier or vessel that is not operated through the Panama Canal and with which the carrier does or may compete for traffic when the Commission finds that ownership, operation, control, or interest will still allow that water common carrier or vessel to be operated in the public interest advantageously to interstate commerce and that it will still allow competition, without reduction, on the water route in question. However, section 11343 of this title also applies to a transaction or interest under this subsection if the transaction or interest is within the scope of that section. The Commission may begin a proceeding under this subsection on application of a carrier. An authorization under this subsection is not necessary for a carrier that obtained an order of extension before September 18, 1940, under section 5(21) of the Interstate Commerce Act (37 Stat. 567), as amended, if the order is still in effect.

(c) The Commission may take action under this section only after a full hearing. An order entered as a result of the action may be conditioned on giving security for the payment of an amount of money or the discharge of an obligation that is required to be paid or discharged under that order.

( Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1432 .)

In subsection (a)(1), the words "the provisions of" are omitted as surplus. The words "from and after the 1st day of July 1914" and "(after September 18, 1940)" are omitted as obsolete. The words "rail, express, sleeping car, or pipeline carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under subchapter I of chapter 105 of this title" are substituted for "any carrier, as defined in section 1(3) of this title" for clarity and to conform to the restatement. The words "have an interest in" are substituted for "have any interest whatsoever (by stock ownership or otherwise, either directly, indirectly, through any holding company, or by stockholders or directors in common, or in any other manner)" as being more inclusive. The words "operated through the Panama Canal or elsewhere" are omitted as surplus. The words "with which it" are substituted for "with which such carrier aforesaid" for clarity. The words "on a water route" are substituted for "upon said water route or elsewhere" as being more inclusive.

In subsection (a)(2), the words "The Commission may decide" are substituted for "Jurisdiction is conferred on the Commission to determine" for clarity. The word "carrier" is substituted for "railroad company or other carrier" as being more inclusive. The words "to determine" are substituted for "for the purpose of determining" for clarity. The word "request" is substituted for "pray" as being more appropriate. The words "that action be taken under subsection (b) of this section" are substituted for "for an order under the provisions of paragraph (16) of this section" to conform to the revised section and for clarity in view of subchapter II of chapter 5 of title 5. The word "initiative" is substituted for "motion" for consistency. The word "investigate" is substituted for "inquiry into" for clarity. The word "if" is inserted in the last sentence for clarity. The last sentence of 49:5(16) is omitted as surplus in view of subchapter II of chapter 103 of the revised title and subchapter II of chapter 5 of title 5.

In subsection (b), the words "the Commission may" are substituted for "the Commission shall have authority" for clarity. The words "when the Commission finds" are substituted for "if the Commission shall find" for clarity. The words "will still allow" are substituted for "will not prevent" for clarity. The words "advantageously to interstate commerce" are substituted for "and with advantage to the convenience and commerce of the people" for clarity. The words "will still allow competition, without reduction," are substituted for "will not exclude, prevent, or reduce competition" for clarity. The words "in question" are substituted for "under consideration" for clarity. The 2d sentence restates 49:5(17) (1st proviso) for clarity and to conform to the revised title. The 3d sentence is substituted for "upon application of any carrier, . . . and after hearing, by order" for clarity in view of subchapter II of chapter 5 of title 5. The words "An authorization under this subsection is not necessary" are substituted for "And provided further, That no such authorization shall be necessary" for clarity. The words "having the ownership, lease, operation, control, or interest" in 49:5(17) (2d proviso) are omitted as surplus. The words "under section 5(21) of the Interstate Commerce Act (37 Stat. 567), as amended," are substituted for "under the provisions of paragraph (21) of this section, as in effect prior to such date" to conform to the revised title. Paragraph (21) of that act was enacted by the act of August 24, 1912, ch. 390, §11, 37 Stat. 567 , made a part of section 5 of the Interstate Commerce Act by section 408 of the act of February 28, 1920, ch. 91, 41 Stat. 482 , and was renumbered as paragraph (21) by section 203 of the act of June 16, 1933, ch. 91, 48 Stat. 220 . The words "if the order" are substituted for "and such order" for clarity.

In subsection (c), the words "upon formal complaint or in proceedings instituted by the Commission of its own motion" are omitted as surplus in view of chapter 117 of the revised title. The words "The orders provided for in said paragraphs shall be served in the same manner and enforced by the same penalties and proceedings as are the orders of the Commission made under the provisions of section 15 of this title" are omitted as unnecessary in view of the restatement.

References in Text

Section 5(21) of the Interstate Commerce Act (37 Stat. 567), referred to in subsec. (b), was classified to section 5(21) of former Title 49, Transportation. Par. (21) was omitted in the general amendment of section 5 by act Sept. 18, 1940, ch. 722, title I, §7, 54 Stat. 905 . For further details, see Historical and Revision Notes above.

Section Referred to in Other Sections

This section is referred to in sections 11323, 11914 of this title.