Chapter 91. To provide for the termination of Federal control of railroads and systems of transportation; to provide for the settlement of disputes between carriers and their employees; to further amend an Act entitled “An Act to regulate commerce,” approved February 4, 1887, as amended, and for other purposes
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CHAP. 91.— An Act To provide for the termination of Federal control of railroads and systems of transportation; to provide for the settlement of disputes between carriers and their employees; to further amend an Act entitled “An Act to regulate commerce,” approved February 4, 1887, as amended, and for other purposes. February 28, 1920. [[H. R. 10453](/us/bill/66/hr/10453).] [[Public, No. 152](/us/pl/66/152).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,* Transportation Act, 1920.Definitions.
TITLE I.— DEFINITIONS. Section 1. Title. This Act may be cited as the “Transportation Act, 1920.” 457 Sec. 2. When used in this Act—transportation act. The term “Interstate Commerce Act” means the Act entitledMeaning of terms.“Interstate Commerce Act.”Vol. 24, p. 379.*Post*, p. 474.“Commerce Court Act.”Vol. 36, p. 539. “An Act to regulate commerce,” approved Feburary 4, 1887, as amended; The term “Commerce Court Act” means the Act entitled “An Act to create a commerce court, and to amend an Act entitled ‘An Act to regulate commerce,’ approved February 4, 1887, as heretofore amended, and for other purposes,” approved June 18, 1910;
The term “Federal Control Act” means the Act entitled “An“Federal Control Act.”Vol. 40, pp. 451, 1290. Act to provide for the operation of transportation systems while under Federal control, for the just compensation of their owners, and for other purposes,” approved March 21, 1918, as amended; The term “Federal control” means the possession, use, control,“Federal control.” and operation of railroads and systems of transportation, taken over or assumed by the President under section 1 of the Act entitled “AnVol. 39, p. 645.
Act making appropriations for the support of the Army for the fiscal year ending June 30, 1917, and for other purposes,” approved August 29, 1916, or under the Federal Control Act; and The term “Commission” means the Interstate Commerce Commission.“Commission.” TITLE II.— TERMINATION OF FEDERAL CONTROL.Termination of Federal control. Sec. 200.
(a)Federal control shall terminate at 12.01 a. m.,Effective March 1, 1920. March 1, 1920; and the President shall then relinquish possession and control of all railroads and systems of transportation then under Federal control and cease the use and operation thereof.
(b)Thereafter the President shall not have or exercise any of thePowers relinquished. powers conferred upon him by the Federal Control Act relating—
(1)To the use or operation of railroads or systems of transportation;Operation of transportation systems.
(2)To the control or supervision of the carriers owning or operatingSupervision of carriers. them, or of the business or affairs of such carriers;
(3)To their rates, fares, charges, classifications, regulations, orRates, classifications, etc. practices;
(4)To the purchase, construction, or other acquisition of boats,Water transportation facilities, terminals, etc. barges, tugs, and other transportation facilities on the inland, canal, or coastwise waterways; or (except in pursuance of contracts or agreements entered into before the termination of Federal control) of terminals, motive power, cars, or equipment, on or in connection with any railroad or system of transportation;
(5)To the utilization or operation of canals;Canal operation.
(6)To the purchase of securities of carriers, except in pursuancePurchase of carriers’ securities. of contracts or agreements entered into before the termination of Federal control, or as a necessary or proper incident to the adjustment, settlement, liquidation and winding up of matters arising out of Federal control; or
(7)To the use for any of the purposes above stated (except inUse of revolving fund. pursuance of contracts or agreements entered into before the termination of Federal control, and except as a necessary or properExceptions. incident to the winding up or settling of matters arising out of Federal control, and except as provided in section 202) of the revolving fund created by such Act, or of any of the additions thereto madeVol. 40, p. 455.*Ante*, p. 34. under such Act, or by the Act entitled “An Act to supply a deficiency in the appropriation for carrying out the Act entitled ‘An Act to provide for the operation of transportation systems while under Federal control, for the just compensation of their owners, and for other purposes,’ approved March 21, 1918,” approved June 30, 1919.
(c)Nothing in this Act shall be construed as affecting or limitingWar emergency powers not affected.Vol. 39, p. 645. the power of the President in time of war (under section 1 of the Act entitled “An Act making appropriations for the support of the 458transportation act.Army for the fiscal year ending June 30, 1917, and for other purposes,” approved August 29, 1916) to take possession and assume control of any system of transportation and utilize the same. government-owned boats on inland waterways.Inland waterways. Sec. 201. Government boats, etc., on, transferred to Secretary of War.*Post*, p. 906.
(a)On the termination of Federal control, as provided in section 200, all boats, barges, tugs, and other transportation facilities, on the inland, canal, and coastwise waterways (hereinafter in this section called “transportation facilities”) acquired by the Vol. 40, p. 455.United States in pursuance of the fourth paragraph of section 6 of the Federal Control Act (except the transportation facilities constituting*Post*, p. 1149. parts of railroads or transportation systems over which Federal control was assumed) are transferred to the Secretary of Operation continued, etc.War, who shall operate or cause to be operated such transportation facilities so that the lines of inland water transportation established by or through the President during Federal control shall be continued, and assume and carry out all contracts and agreements in relation thereto entered into by or through the President in pursuance of such paragraph prior to the time above fixed for such transfer. Prior contracts, claims, etc., payable from Federal control moneys.All payments under the terms of such contracts, and for claims Transfers of moneys.arising out of the operation of such transportation facilities by or through the President prior to the termination of Federal control, shall be made out of moneys available under the provisions of this Act for adjusting, settling, liquidating, and winding up matters arising out of or incident to Federal control. Moneys required for such payments shall, from time to time, be transferred to the Secretary of War as required for payment under the terms of such contracts.
(b)Subsequent operation, etc., expenses. All other payments after such transfer in connection with the construction, utilization, and operation of any such transportation facilities, whether completed or under construction, shall be made by the Secretary of War out of funds now or hereafter made available for that purpose.
(c)Terminal facilities for traffic interchange.*Post*, p. 1392. The Secretary of War is hereby authorized, out of any moneys hereafter made available therefor, to construct or contract for the construction of terminal facilities for the interchange of traffic between the transportation facilities operated by him under this Under State ownership.section and other carriers whether by rail or water, and to make loans for such purposes under such terms and conditions as he may determine to any State whose constitution prohibits the ownership of such terminal facilities by other than the State or a political subdivision thereof.
(d)Mississippi River.Operation of facilities above Saint Louis, Mo. Any transportation facilities owned by the United States and included within any contract made by the United States for operation on the Mississippi River above Saint Louis, the possession of which reverts to the United States at or before the expiration of such contract, shall be operated by the Secretary of War so as to provide facilities for water carriage on the Mississippi River above Saint Louis.
(e)Operation subject to interstate commerce laws, and Shipping Act. The operation of the transportation facilities referred to in this section shall be subject to the provisions of the Interstate Commerce Act as amended by this Act or by subsequent legislation, and to the Vol. 39, p. 728; Vol. 40, p. 900.provisions of the “Shipping Act, 1916,” as now or hereafter amended, in the same manner and to the same extent as if such transportation Shipping laws applicable to merchant vessels.facilities were privately owned and operated; and all such vessels while operated and employed solely as merchant vessels shall be subject to all other laws, regulations, and liabilities governing merchant vessels, whether the United States is interested therein as owner, in whole or in part, or holds any mortgage, lien, or interest Employees authorized.therein. For the performance of the duties imposed by this section the Secretary of War is authorized to appoint or employ such num-459ber of experts, clerks, and other employees as may be necessary fortransportation act. service in the District of Columbia or elsewhere, and as may be provided for by Congress. settlement of matters arising out of federal control.Settlement of Federal control matters. Sec. 202. The President shall, as soon as practicable after the terminationEarly liquidation, etc., directed. of Federal control, adjust, settle, liquidate, and wind up all matters, including compensation, and all questions and disputes of whatsoever nature, arising out of or incident to Federal control. For these purposes and for the purpose of making the paymentsMoneys available. specified in subdivision
(a)of section 201, all unexpended balances in the revolving fund created by the Federal Control Act or of theVol. 40, p. 455.*Ante*, p. 34. moneys appropriated by the Act entitled “An Act to supply a deficiency in the appropriation for carrying out the Act entitled ‘An Act to provide for the operation of transportation systems while under Federal control, for the just compensation of their owners, and for other purposes,’ approved March 21, 1918,” approved June 30, 1919,Use of operation receipts, etc. are hereby reappropriated and made available until expended; and all moneys derived from the operation of the carriers or otherwise arising out of Federal control, and all moneys that have been or may be received in payment of the indebtedness of any carrier to the United States arising out of Federal control, shall be and remain available until expended for the aforesaid purposes; and there is hereby appropriated for the aforesaid purposes, out of any money inAdditional appropriation.*Post*, p, 589. the Treasury not otherwise appropriated, $200,000,000 in addition to the above, to be available until expended. compensation of carriers with which no contract made.Compensation of carriers with, which no contract made. Sec. 203.
(a)Upon the request of any carrier entitled to just compensationPart of estimated amount for corporate charges and expenses, to be paid. under the Federal Control Act, but with which no contract fixing or waiving compensation has been made and which has made no waiver of compensation, the President:
(1)shall pay to it so much of the amount he may determine to be just compensation as may be necessary to enable such carrier to have the sums required for interest, taxes, and other corporate charges and expenses referred to in paragraph
(b)of section 7 of the standard contract between the United States and the carriers, accruing during the period for which such carrier is entitled to just compensation under the Federal Control Act, and also the sums required for dividends declared and paid duringFor dividends. the same period, including, also, in addition, a sum equal to that proportion of such last dividend which the period between its payment and the termination of the period for which the carrier is entitled to just compensation under the Federal Control Act bears to the last dividend period; and
(2)may, in his discretion, pay to such carrierFurther discretionary payment. the whole or any part of the remainder of such estimated amount of just compensation.
(b)The acceptance of any benefits by a carrier under this section—Conditions if accepted.Additional compensation may be claimed.
(1)shall not deprive it of the right to claim additional compensation, which, unless agreed upon, shall be ascertained in the manner provided in section 3 of the Federal Control Act; but
(2)shall constitute an acceptance by the carrier of all the provisionsCarrier to repay excess if any found due. of the Federal Control Act as modified by this Act, and obligate the carrier to pay to the United States, with interest at the rate of 6 per centum per annum from a date or dates fixed in proceedings under section 3 of the Federal Control Act, the amount by which the sums received on account of such compensation, under this section or otherwise, exceed the sum found due in such proceedings. 460 reimbursement of deficits during federal control.transportation act.Deficits during Federal control. Sec. 204. Meaning of terms.“Carrier.”Competing road which sustained deficit during Federal control.
(a)When used in this section— The term “carrier” means a carrier by railroad which, during any part of the period of Federal control, engaged as a common carrier in general transportation, and competed for traffic, or connected, with a railroad under Federal control, and which sustained a deficit in its railway operating income for that portion (as a whole) of the period of Federal control during which it operated its own railroad or system Exceptions.of transportation; but does not include any street or interurban electric railway which has as its principal source of operating revenue urban, suburban, or interurban passenger traffic or sale of power, heat, and light, or both; and “Test period.”The term “test period” means the three years ending June 30, 1917. (*b*) For the purposes of this section— Computations.Income during Federal control period.*Post*, p. 464.Railway operating income or any deficit therein for the period of Federal control shall be computed in a manner similar to that provided in section 209 with respect to such income or deficit for the guaranty period; and During test period.Vol. 40, p. 451.Railway operating income or any deficit therein for the test period shall be computed in the manner provided in section 1 of the Federal Control Act. (*c*) Ascertainment of income, etc., during Federal control period. As soon as practicable after March 1, 1920, the Commission shall ascertain for every carrier, for every month of the period of Federal control during which its railroad or system of transportation was not under Federal operation, its deficit in railway operating income, if any, and its railway operating income, if any, (hereinafter Average for test period.called “Federal control return”), and the average of its deficit in railway operating income, if any, and of its railway operating income, if any, for the three corresponding months of the test period taken *Proviso*.Carriers not operating during whole of test period.together, (hereinafter called “test period return”): *Provided*, That “test period return,” in the case of a carrier which operated its railroad or system of transportation for at least one year during, but not for the whole of, the test period, means its railway operating income, or the deficit therein, for the corresponding month during the test period, or the average thereof for the corresponding months during the test period taken together, during which the carrier operated its railroad or system of transportation.
(d)Monthly comparison of differences of deficits. For every month of the period of Federal control during which the railroad or system of transportation of the carrier was not under Federal operation, the Commission shall then ascertain
(1)the difference between its Federal control return, if a deficit, and its test period return, if a smaller deficit, or
(2)the difference between its test period return, if an income, and its Federal control return, if a smaller income, or
(3)the sum of its Federal control return, if a Credits to carrier.deficit, plus its test period return, if an income. The sum of such amounts shall be credited to the carrier.
(e)Monthly comparison of incomes. For every such month the Commission shall then ascertain
(1)the difference between the carrier’s Federal control return, if an income, and its test period return, if a smaller income, or
(2)the difference between its test period return, if a deficit, and its Federal control return, if a smaller deficit, or
(3)the sum of its Federal control return, if an income, plus its test period return, if a deficit. Credits to the United States.The sum of such amounts shall be credited to the United States.
(f)Excess credits payable to carrier. If the sum of the amounts so credited to the carrier under subdivision
(d)exceeds the sum of the amounts so credited to the Carriers not operating during whole of test period.United States under subdivision (e), the difference shall be payable to the carrier. In the case of a carrier which operated its railroad or system of transportation for less than a year during, or for none of, the test period, the foregoing computations shall not be used, but there shall be payable to such carrier its deficit in railway operating 461income for that portion (as a whole) of the period of Federal controltransportation act. during which it operated its own railroad or system of transportation.
(g)The Commission shall promptly certify to the Secretary of theCertificate to Secretary of the Treasury, etc. Treasury the several amounts payable to carriers under paragraph (f). The Secretary of the Treasury is hereby authorized and directedWarrant for payment. thereupon to draw warrants in favor of each such carrier upon the Treasury of the United States for the amount shown in such certificate as payable thereto. An amount sufficient to pay such warrantsAppropriation. is hereby appropriated out of any money in the Treasury not otherwise appropriated. inspection of carriers records.Records, etc., of carriers. Sec. 205. The President shall have the right, at all reasonableInspection authorized of, under Federal control. times until the affairs of Federal control are concluded, to inspect the property and records of all carriers whose railroads or systems of transportation were at any time under Federal control, wheneverPurpose. such inspection is necessary or appropriate
(1)to protect the interests of the United States, or
(2)to supervise matters being handled for the United States by agents of the carriers, or
(3)to secure information concerning matters arising during Federal control, and such carriers shall provide all reasonable facilities therefor, including theFacilities to agents. issuance of free transportation to all agents of the President while traveling on official business for these purposes. Such carriers shall, at their expense, upon the request of theInformation to be furnished by carriers. President, or those duly authorized by him, furnish all necessary and proper information and reports compiled from the records made or kept during the period of Federal control affecting their respective lines, and shall keep and continue such records and furnish like information and reports compiled therefrom. Any carrier which refuses or obstructs such inspection, or whichPenalty for refusal, etc. willfully fails to provide reasonable facilities therefor, or to furnish such information or reports shall be liable to a penalty of $500 for each day of the continuance of such offense, which shall accrue to the United States and may be recovered in a civil action to be brought by the United States. causes of action arising out of federal control.Causes of action arising out of Federal control. Sec. 206.
(a)Actions at law, suits in equity and proceedings inCauses of action arising out of Federal control.Vol. 40, p. 451; Vol. 39, p. 645. admiralty, based on causes of action arising out of the possession, use, or operation by the President of the railroad or system of transportation of any carrier (under the provisions of the Federal Control Act, or of the Act of August 29, 1916) of such character as prior to Federal control could have been brought against such carrier, may, after the termination of Federal control, be brought against an*Post*, pp. 1859, 1864. agent designated by the President for such purpose, which agent shall be designated by the President within thirty days after the passage of this Act. Such actions, suits, or proceedings may, withinTime and jurisdiction. the periods of limitation now prescribed by State or Federal statutes but not later than two years from the date of the passage of this Act, be brought in any court which but for Federal control would have had jurisdiction of the cause of action had it arisen against such carrier.
(b)Process may be served upon any agent or officer of the carrierService of process.If contract made with carrier. operating such railroad or system of transportation, if such agent or officer is authorized by law to be served with process in proceedings brought against such carrier and if a contract has been made with such carrier by or through the President for the conduct of litigation arising out of operation during Federal control. If no such contractIf no contract. has been made process may be served upon such agents or officers 462transportation act.Statement by designated agent to district courts.as may be designated by or through the President. The agent designated by the President under subdivision
(a)shall cause to be filed, upon the termination of Federal control, in the office of the Clerk of each District Court of the United States, a statement naming all carriers with whom he has contracted for the conduct of litigation arising out of operation during Federal control, and a like statement designating the agents or officers upon whom process may be served in actions, suits, and proceedings arising in respect to railroads or systems of transportation with the owner of which no such contract has been made; and such statements shall be supplemented from time to time, if additional contracts are made or other agents or officers appointed.
(c)Reparation for damages by violations of interstate commerce laws during Federal control. Complaints praying for reparation on account of damage claimed to have been caused by reason of the collection or enforcement by or through the President during the period of Federal control of rates, fares, charges, classifications, regulations, or practices (including those applicable to interstate, foreign, or intrastate traffic) which were unjust, unreasonable, unjustly discriminatory, or unduly or unreasonably prejudicial, or otherwise in violation of the Claims to be filed against designated agent.Interstate Commerce Act, may be filed with the Commission, within one year after the termination of Federal control, against the agent designated by the President under subdivision (a), naming in the petition the railroad or system of transportation against which such complaint would have been brought if such railroad or system had not been under Federal control at the time the matter complained Jurisdiction of Commission.of took place. The Commission is hereby given jurisdiction to hear and decide such complaints in the manner provided in the Interstate Commerce Act, and all notices and orders in such proceedings shall be served upon the agent designated by the President under subdivision (a).
(d)Pending claims continued. Actions, suits, proceedings, and reparation claims, of the character above described pending at the termination of Federal control shall not abate by reason of such termination, but may be prosecuted to final judgment, substituting the agent designated by the President under subdivision (a).
(e)Payment of awards, etc. Final judgments, decrees, and awards in actions, suits, proceedings, or reparation claims, of the character above described, rendered against the agent designated by the President under subdivision*Post*, p. 468. (a), shall be promptly paid out of the revolving fund created by section 210.
(f)Control period not computed in time limitations. The period of Federal control shall not be computed as a part of the periods of limitation in actions against carriers or in claims for reparation to the Commission for causes of action arising prior to Federal control.
(g)Property of carrier under Federal control exempt from execution, etc. No execution or process, other than on a judgment recovered by the United States against a carrier, shall be levied upon the property of any carrier where the cause of action on account of which the judgment was obtained grew out of the possession, use, control, or operation of any railroad or system of transportation by the President under Federal control. refunding of carriers’ indebtedness to united states.Refunding of carriers’ indebtedness to United States. Sec. 207. Speedy ascertainment of indebtedness between carriers and United States.
(a)As soon as practicable after the termination of Federal control the President shall ascertain
(1)the amount of the indebtedness of each carrier to the United States, which may exist at the termination of Federal control, incurred for additions and betterments made during Federal control and properly chargeable to capital account;
(2)the amount of indebtedness of such carrier to the United States otherwise incurred; and
(3)the amount of the indebtedness of the United States to such carrier arising out of 463Federal control. The amount under clause
(3)may be set off againsttransportation act.Set-off allowed. either or both of the amounts under clauses
(1)and (2), so far as deemed wise by the President, but only to the extent permittedLimitations. under any contract now or hereafter made between such carrier and the United States in respect to the matters of Federal control, or, where no such contract exists, to the extent permitted under paragraph
(b)of section 7 of the standard contract between the United States and the carriers relative to deductions from compensation: *Provided*, That such right of set-off shall not be so exercised as to*Provisos*.Set-offs not to prevent allowances for corporate charges, dividends, etc. prevent such carrier from having the sums required for interest, taxes, and other corporate charges and expenses referred to in paragraph
(b)of section 7 of such standard contract, accruing during Federal control, and also the sums required for dividends declared and paid during Federal control, including, also in addition, a sum equal to that proportion of such last dividend which the period between its payment and the termination of Federal control bears to the last regular dividend period: *And provided further*, That suchWorking capital allowance. right of set-off shall not be exercised unless there shall have first been paid such sums in addition as may be necessary to provide the carrier with working capital in amount not less than one twenty-fourth of its operating expenses for the calendar year 1919.
(b)Any remaining indebtedness of the carrier to the United StatesFunding of indebtedness for betterments, etc. in respect to such additions and betterments shall, at the request of the carrier, be funded for a period of ten years from the termination of Federal control, or a shorter period at the option of the carrier, with interest at the rate of 6 per centum per annum, payable semiannually, subject to the right of such carrier to pay, on any interest-payment day, the whole or any part of such indebtedness. Any carrierSecurity to be given. obtaining the funding of such indebtedness as aforesaid shall give, in the discretion of the President, such security, in such form and upon such terms, as he may prescribe.
(c)If the President and the various carriers, or any of them, shallCar trust certificates for equipment indebtedness. enter into an agreement for funding, through the medium of car trust certificates, or otherwise, the indebtedness of any such carrier to the United States incurred for equipment ordered for the benefit of such carrier, such indebtedness so funded shall not be refundable under the foregoing provisions.
(d)Any other indebtedness of any such carrier to the United StatesTime notes for other indebtedness. which may exist after the settlement of accounts between the United States and the carrier and is then due shall be evidenced by notes payable in one year from the termination of Federal control, or a shorter period at the option of the carrier, with interest at the rate of 6 per centum per annum, and secured by such collateral securityCollateral security. as the President may deem it advisable to require.
(e)With respect to any bonds, notes, or other securities, acquiredExtensions, etc., permitted of securities acquired.*Ante*, p. 359. under the provisions of this section or of the Federal Control Act or of the Act entitled “An Act to provide for the reimbursement of the United States for motive power, cars and other equipment ordered for railroads and systems of transportation under Federal control, and for other purposes,” approved November 19, 1919, the President shall have the right to make such arrangements for extension of the time of payment or for the exchange of any of them for other securities, or partly for cash and partly for securities, as may be provided for in any agreement entered into by him or as may in his judgment seem desirable.
(f)Carriers may, by agreement with the President, issue notes orIssue of notes secured by equipment trust agreements. other evidences of indebtedness, secured by equipment trust agreements, for equipment purchased during Federal control by or through the President under section 6 of the Federal Control Act, and allocatedVol. 40, p. 455. to such carriers respectively; and the filing of such equipment trust agreements with the Commission shall constitute notice thereof to all the world. 464
(g)transportation act.Absolute authority for issues by carriers. A carrier may issue evidences of indebtedness pursuant to this section without the authorization or approval of any authority, State or Federal, and without compliance with any requirement, State or Federal, as to notification. existing rates to continue in effect.Existing rates continued. Sec. 208. All rates, classifications, etc., subject to interstate commerce laws, in force until changed by law, etc.
(a)All rates, fares, and charges, and all classifications, regulations, and practices, in any wise changing, affecting, or determining, any part or the aggregate of rates, fares, or charges, or the value of the service rendered, which on February 29, 1920, are in effect on the lines of carriers subject to the Interstate Commerce Act, shall continue in force and effect until thereafter changed by State or Federal authority, respectively, or pursuant to authority of law; No reduction prior to September 1, 1920, unless approved by Commission.but prior to September 1, 1920, no such rate, fare, or charge shall be reduced, and no such classification, regulation, or practice shall be changed in such manner as to reduce any such rate, fare, or charge, unless such reduction or change is approved by the Commission.
(b)Present joint rates, etc., continued. All divisions of joint rates, fares, or charges, which on February 29, 1920, are in effect between the lines of carriers subject to the Interstate Commerce Act, shall continue in force and effect until thereafter changed by mutual agreement between the interested carriers or by State or Federal authorities, respectively.
(c)Land grant road transportation.VoL 14, p. 338.Vol. 12, p. 772; Vol. 14, p. 292. Any land grant railroad organized under the Act of July 28, 1866 (chapter 300), shall receive the same compensation for transportation of property and troops of the United States as is paid to land grant railroads organized under the Land Grant Act of March 3, 1863, and the Act of July 27, 1866 (chapter 278). guaranty to carriers after termination of federal control.Guaranty to carriers. Sec. 209.
(a)When used in this section— Meaning of term.“Carrier.”The term “carrier” means
(1)a carrier by railroad or partly by railroad and partly by water, whose railroad or system of transportation is under Federal control at the time Federal control terminates, or which has heretofore engaged as a common carrier in general transportation and competed for traffic, or connected, with a railroad Sleeping car company.at any time under Federal control; and
(2)a sleeping car company whose system of transportation is under Federal control at the time Railways excluded.Federal control terminates; but does not include a street or interurban electric railway not under Federal control at the time Federal control terminates, which has as its principal source of operating revenue urban, suburban, or interurban passenger traffic or sale of power, heat, and light, or both; “Guaranty period.”The term “guaranty period” means the six months beginning March 1, 1920. “Test period.”The term “test period” means the three years ending June 30, 1917; and “Railway operating income.”Application to sleeping cars.The term “railway operating income” and other references to accounts of carriers by railroad shall, in the case of a sleeping car company, be construed as indicating the appropriate corresponding accounts in the accounting system prescribed by the Commission.
(b)Written acceptance by carriers required. This section shall not be applicable to any carrier which does not on or before March 15, 1920, file with the Commission a written Amount of guaranty.statement that it accepts all the provisions of this section.
(c)To carriers under contract. The United States hereby guarantees—
(1)With respect to any carrier with which a contract (exclusive of so-called cooperative contracts or waivers) has been made fixing the amount of just compensation under the Federal Control Act, that the railway operating income of such carrier for the guaranty Half the amount of annual compensation.period as a whole shall not be less than one-half the amount named in such contract as annual compensation, or, where the contract fixed a 465lump sum as compensation for the whole period of Federal operation,transportation act.Lump-sum contracts. that the railway operating income of such carrier for the guaranty period as a whole shall not be less than an amount which shall bear the same proportion to the lump sum so fixed as six months bears to the number of months during which such carrier was under FederalIncreases allowed.Vol. 40, p. 455. operation, including in both cases the increases in such compensation provided for in section 4 of the Federal Control Act;
(2)With respect to any carrier entitled to just compensation underIf no contract with carrier.Half of annual amount estimated as just compensation, etc. the Federal Control Act, with which such a contract has not been made, that the railway operating income of such carrier for the guaranty period as a whole shall not be less than one-half of the annual amount estimated by the President as just compensation for such carrier under the Federal Control Act, including the increases in such compensation provided for in section 4 of the Federal Control Act. If any such carrier does not accept the President’s estimateDetermination if estimate not accepted. respecting its just compensation, and if in proceedings under section 3 of the Federal Control Act it is determined that a larger or smaller annual amount is due as just compensation, the guaranty under this paragraph shall be increased or decreased accordingly;
(3)With respect to any carrier, whether or not entitled to justAmount allowed if no estimate of just compensation has been made. compensation under the Federal Control Act, with which such a contract has not been made, and for which no estimate of just compensation is made by the President, and which for the test period as a whole sustained a deficit in railway operating income, the guaranty shall be a sum equal to
(a)the amount by which any deficit in its railway operating income for the guaranty period as a whole exceeds one-half of its average annual deficit in railway operating income for the test period, plus
(b)an amount equal to one-half the annual sum fixed by the President under section 4 of the Federal Control Act;
(4)With respect to any carrier not entitled to just compensationAllowance to carriers not entitled to compensation under Federal Control Act. under the Federal Control Act, which for the test period as a whole had an average annual railway operating income, that the railway operating income of such carrier for the guaranty period as a whole shall not be less than one-half the average annual railway operating income of such carrier during the test period.
(d)If for the guaranty period as a whole the railway operatingCarrier to pay excess of income over guaranty. income of any carrier entitled to a guaranty under paragraph (1), (2), or
(4)of subdivision
(c)is in excess of the minimum railway operating income guaranteed in such paragraph, such carrier shall forthwith pay the amount of such excess into the Treasury of the United States. If for the guaranty period as a whole the railway operatingIf no estimate made. income of any carrier entitled to a guaranty under paragraph
(3)of subdivision
(c)is in excess of one-half of the annual sum fixed by the President with respect to such carrier under section 4 of the Federal Control Act, such carrier shall forthwith pay the amount of such excess into the Treasury of the United States. The amountsUse of payments. so paid into the Treasury of the United States shall be added to the*Ante*, p. 459. funds made available under section 202 for the purposes indicated in such section. Nothwithstanding the provisions of this subdivision,Retention of amount for fixed charges. any carrier may retain out of any such excess any amount necessary to enable it to pay its fixed charges accruing during the guaranty period.
(e)For the purposes of this section railway operating income, orComputation for test period.Vol. 40, p. 452. any deficit therein, for the test period shall be computed in the manner provided for in section 1 of the Federal Control Act.
(f)In computing railway operating income, or any deficit therein,Computation for guaranty period. for the guaranty period for the purposes of this section—
(1)Debits and credits arising from the accounts, called in theDebits and credits included. monthly reports to the Commission equipment rents and joint facility rents, shall be included, but debits and credits arising from the operation of such street electric passenger railways, including rail-466waystransportation act. commonly called interurbans, as are not under Federal control at the time of termination thereof, shall be excluded;
(2)Adjustments for lines formerly part of carriers’ system. Proper adjustments shall be made
(a)in case any lines which were, during any portion of the period of Federal control, a part of the railroad or system of transportation of the carrier, and whose railway operating income was included in such income of the carrier for the test period, do not continue to be a part of such railroad or system of transportation during the entire guaranty period, and
(b)Consolidated, etc., during guaranty period.in case of any lines acquired by, leased to, or consolidated with, the railroad or system of transportation of the carrier at any time since the end of the test period and prior to the expiration of the guaranty period, for which separate operating returns to the Commission are not made in respect to the entire portion of the guaranty period;
(3)Maintenance expenses.Allowance for, to be determined by Commission. There shall not be included in operating expenses, for maintenance of way and structures, or for maintenance of equipment, more than an amount fixed by the Commission. In fixing such amount the Commission shall so far as practicable apply the rule set forth in the proviso in paragraph
(a)of section 5 of the “standard contract” between the United States and the carriers (whether or not such contract has been entered into with the carrier whose railway operating income is being computed);
(4)Taxes excluded.Vol. 40, pp. 300–308, 1058–1096. There shall not be included any taxes paid under Title I or II of the Revenue Act of 1917, or such portion of the taxes paid under Title II or III of the Revenue Act of 1918 as by the terms of such Act are to be treated as levied by an Act in amendment of Title I or II of the Revenue Act of 1917; and
(5)Correction of disproportionate or unreasonable charges. The Commission shall require the elimination and restatement of the operating expenses and revenues (other than for maintenance of way and structures, or maintenance of equipment) for the guaranty period, to the extent necessary to correct and exclude any disproportionate or unreasonable charge to such expenses or revenues for such period, or any charge to such expenses or revenues for such period which under a proper system of accounting is attributable to another period.
(g)Amount due carrier to be certified to Secretary of the Treasury. The Commission shall, as soon as practicable after the expiration of the guaranty period, ascertain and certify to the Secretary of the Treasury the several amounts necessary to make good the foregoingPayment directed. guaranty to each carrier. The Secretary of the Treasury is hereby authorized and directed thereupon to draw warrants in favor of each such carrier upon the Treasury of the United States, for the amount shown in such certificate as necessary to make good such Appropriation.guaranty. An amount sufficient to pay such warrants is hereby appropriated out of any money in the Treasury not otherwise appropriated.
(h)Advances during guaranty period to meet fixed charges. Upon application of any carrier to the Commission, asking that during the guaranty period there may be advanced to it from time to time such sums, not in excess of the estimated amount necessary to make good the guaranty, as are necessary to enable it to meet its fixed charges and operating expenses, the Commission may certify to the Secretary of the Treasury the amount of, and times at Contract for repayment of excess, if any.which, such advances, if any, shall be made. The Secretary of the Treasury, on receipt of such certificate, is authorized and directed to make the advances in the amounts and at the times specified in the certificate, upon the execution by the carrier of a contract, secured in such manner as the Secretary may determine, that upon final determination of the amount of the guaranty provided for by this section such carrier will repay to the United States any amounts which it has received from such advances in excess of the guaranty, with interest at the rate of 6 per centum per annum from the time Appropriation.such excess was paid. There is hereby appropriated, out of any money in the Treasury not otherwise appropriated, a sum sufficient to enable 467the Secretary of the Treasury to make the advances referred to in thistransportation act. subdivision.
(i)If the American Railway Express Company shall, on or beforeAmerican Railway Express Company.Guaranty against deficit if conditions accepted. March 15, 1920, file with the Commission a written statement that it accepts all the provisions of this subdivision, the contract of June 26, 1918, between such company and the Director General of Railroads, as amended and continued by agreement dated November 21, 1918, shall remain in full force and effect during the guaranty period in so far as the same constitutes a guaranty on the part of the United States to such company against a deficit in operating income. In computing operating income, and any deficit therein, for theComputation to be made of expenses and revenues. guaranty period for the purposes of this subdivision, the Commission shall require the elimination and restatement of the operating expenses and revenues for the guaranty period, to the extent necessary to correct and exclude any disproportionate or unreasonable charge to such expenses or revenues for such period, or any charge to such expenses or revenues for such period which under a proper system of accounting is attributable to another period, and to exclude fromExclusion from operating expenses. operating expenses so much of the charge for payment for express privileges to carriers on whose lines the express traffic is carried as is in excess of 50.25 per centum of gross express revenue. For the guaranty period the American Railway Express CompanyBasis for payment of guaranty. shall pay to every carrier which accepts the provisions of this section, as provided in subdivision
(b)hereof, 50.25 per centum of the gross revenue earned on the transportation of all its express traffic on the carrier’s lines, and every such carrier shall accept from the American Railway Express Company such percentage of the gross revenue as its compensation. In arriving at the gross revenue on through or joint express traffic, the method of dividing the revenue between the carriers shall be that agreed upon between the carriers and such express company and approved by the Commission. If for the guaranty period as a whole the American Railway ExpressIf no deficit, income to be paid into the Treasury. Company does not have a deficit in operating income, it shall forthwith pay the amount of its operating income for such period into the Treasury of the United States. The amount so paid shall be added*Ante*,p. 459. to the funds made available under section 202 for the purposes indicated in such section. The Commission shall, as soon as practicable after the expirationCertificate of amount due. of the guaranty period, certify to the Secretary of the Treasury the amount necessary to make good the foregoing guaranty to the American Railway Express Company. The Secretary of the TreasuryPayment directed. is hereby authorized and directed thereupon to draw warrants in favor of such company upon the Treasury of the United States for the amount shown in such certificate as necessary to make good such guaranty. An amount sufficient to pay such warrants is herebyAppropriation for. appropriated out of any money in the Treasury not otherwise appropriated. Upon application of the American Railway Express Company to theAdvances to meet operating expenses. Commission, asking that during the guaranty period there may be advanced to it from time to time such sums, not in excess of the estimated amount necessary to make good the guaranty, as are necessary to enable it to meet its operating expenses, the Commission may certify to the Secretary of the Treasury the amount of, and times at which, such advances, if any, shall be made. The SecretaryContract for repaying any excess. of the Treasury, on receipt of such certificate, is authorized and directed to make the advances in the amounts and at the times specified in the certificate, upon the execution by such company of a contract, secured in such manner as the Secretary may determine, that upon final determination of the amount of the guaranty provided for by this subdivision such company will repay to the United States any amounts which it has received from such advances in 468transportation act.excess of the guaranty, with interest at the rate of 6 per centum per Appropriation.annum from the time such excess was paid. There is hereby appropriated out of any money in the Treasury not otherwise appropriated a sum sufficient to enable the Secretary of the Treasury to make the advances referred to in this subdivision. new loans to railroads.New loans to railroads. Sec. 210. Applications by carriers for, on termination of Federal control.Details required.*Post*, p. 946.
(a)For the purpose of enabling carriers by railroad subject to the Interstate Commerce Act properly to serve the public during the transition period immediately following the termination of Federal control, any such carrier may, at any time after the passage of this Act and before the expiration of two years after the termination of Federal control, make application to the Commission for a loan from the United States, setting forth the amount of the loan and the term for which it is desired, the purpose of the loan and the uses to which it will be applied, the present and prospective ability of the applicant to repay the loan and meet the requirements of its obligations in that regard, the character and value of the security offered, and the extent to which the public convenience and Statements to accompany applications.necessity will be served. The application shall be accompanied by statements showing such facts and details as the Commission may require with respect to the physical situation, ownership, capitalization, indebtedness, contract obligations, operation, and earning power of the applicant, together with such other facts relating to the propriety and expediency of granting the loan applied for and the ability of the applicant to make good the obligation, as the Commission may deem pertinent to the inquiry.
(b)Investigation, and certificate of findings to Secretary of the Treasury. If the Commission, after such hearing and investigation, with or without notice, as it may direct, finds that the making, in whole or in part, of the proposed loan by the United States is necessary to enable the applicant properly to meet the transportation needs of the public, and that the prospective earning power of the applicant and the character and value of the security offered are such as to furnish reasonable assurance of the applicant’s ability to repay the loan within the time fixed therefor, and to meet its other obligations in connection with such loan, the Commission may certify to the Findings and recommendations.Secretary of the Treasury its findings of fact and its recommendations as to: the amount of the loan which is to be made; the time, not exceeding five years from the making thereof, within which it is to be repaid; the character of the security which is to be offered therefor; and the terms and conditions of the loan.
(c)Allowance from revolving fund. Upon receipt of such certificate from the Commission, the Secretary of the Treasury, at any time before the expiration of twenty-six months after the termination of Federal control, is authorized to make a loan, not exceeding the maximum amount recommended in such certificate, out of any moneys in the revolving fund provided for in this section. All such loans shall bear interest at Interest.the rate of 6 per centum per annum, payable semiannually to the Secretary of the Treasury and to be placed to the credit of the Repayment.revolving fund provided for in this section. The time, not exceeding five years from the making thereof, within which such loan is to Security to be prescribed.be repaid, the security which is to be taken therefor, which shall be adequate to secure the loan, the terms and conditions of the loan, and the form of the obligation to be entered into, shall be prescribed by the Secretary of the Treasury.
(d)Assistance of Federal Reserve Board. The Commission or the Secretary of the Treasury may call upon the Federal Reserve Board for advice and assistance with respect to any such application or loan.
(e)Appropriation. There is hereby appropriated out of any moneys in the Treasury not otherwise appropriated the sum of $300,000,000, which shall 469be used as a revolving fund for the purpose of making the loanstransportation act.Use of revolving fund. provided for in this section, and for paying the judgments, decrees, and awards referred to in subdivision
(e)of section 206.*Ante*, p. 462.
(f)A carrier may issue evidences of indebtedness to the UnitedIssue of indebtedness to United States. States pursuant to this section without the authorization or approval of any authority, State or Federal, and without compliance with any requirement, State or Federal, as to notification. execution of powers of president.Execution of powers of the President. Sec. 211. All powers and duties conferred or imposed upon theAgent may be designated for.Exception.*Ante*, p. 461.*Post*, pp. 1145, 1858, 1863. President by the preceding sections of this Act, except the designation of the agent under section 206, may be executed by him through such agency or agencies as he may determine. TITLE III.— DISPUTES BETWEEN CARRIERS AND THEIR EMPLOYEES AND SUBORDINATE OFFICIALS.Railroad disputes. Sec. 300. When used in this title—
(1)The term “carrier” includes any express company, sleepingMeaning of terms.“Carrier.” car company, and any carrier by railroad, subject to the Interstate Commerce Act, except a street, interurban, or suburban electric railway not operating as a part of a general steam railroad system of transportation;
(2)The term “Adjustment Board” means any Railroad Board of“Adjustment Board.” Labor Adjustment established under section 302;
(3)The term “Labor Board” means the Railroad Labor Board;“Labor Board.”
(4)The term “commerce” means commerce among the several“Commerce.” States or between any State, Territory, or the District of Columbia and any foreign nation, or between any Territory or the District of Columbia and any State, or between any Territory and any other Territory, or between any Territory and the District of Columbia, or within any Territory or the District of Columbia, or between points in the same State but through any other State or any Territory or the District of Columbia or any foreign nation; and
(5)The term “subordinate official” includes officials of carriers of“Subordinate official.” such class or rank as the Commission shall designate by regulation formulated and issued after such notice and hearing as the Commission may prescribe, to the carriers, and employees and subordinate officials of carriers, and organizations thereof, directly to be affected by such regulations. Sec. 301. It shall be the duty of all carriers and their officers,Duty enjoined to avoid disputes interrupting operations of roads. employees, and agents to exert every reasonable effort and adopt every available means to avoid any interruption to the operation of any carrier growing out of any dispute between the carrier and the employees or subordinate officials thereof. All such disputes shallMutual conferences between carriers and employees to decide. be considered and, if possible, decided in conference between representatives designated and authorized so to confer by the carriers, or the employees or subordinate officials thereof, directly interested in the dispute. If any dispute is not decided in such conference, itBoard to decide if no agreement made. shall be referred by the parties thereto to the board which under the provisions of this title is authorized to hear and decide such dispute. Sec. 302. Railroad Boards of Labor Adjustment may be establishedBoards of Labor Adjustment.Establishment and composition of. by agreement between any carrier, group of carriers, or the carriers as a whole, and any employees or subordinate officials of carriers, or organization or group of organizations thereof. Sec. 303. Each such Adjustment Board shall,
(1)upon the applicationDisputes as to grievances, rules or working conditions. of the chief executive of any carrier or organization of employees or subordinate officials whose members are directly interested in theHearings, etc, by boards. dispute,
(2)upon the written petition signed by not less than 100 unorganized employees or subordinate officials directly interested in the dispute,
(3)upon the Adjustment Board’s own motion, or
(4)470transportation act.upon the request of the Labor Board whenever such board is of the opinion that the dispute is likely substantially to interrupt commerce, receive for hearing, and as soon as practicable and with due Decisions.diligence decide, any dispute involving only grievances, rules, or working, conditions, not decided as provided m section 301, between the carrier and its employees or subordinate officials, who are, or any organization thereof which is, in accordance with the provisions of section 302, represented upon any such Adjustment Board. Sec. 304. Railroad Labor Board created. There is hereby established a board to be known as the Composition and appointment.Labor group.“Railroad Labor Board” and to be composed of nine members as follows:
(1)Three members constituting the labor group, representing the employees and subordinate officials of the carriers, to be appointed by the President, by and with the advice and consent of the Senate, from not less than six nominees whose nominations shall be made and offered by such employees in such manner as the Commission shall by regulation prescribe;
(2)Management group. Three members, constituting the management group, representing the carriers, to be appointed by the President, by and with the advice and consent of the Senate, from not less than six nominees whose nominations shall be made and offered by the carriers in such manner as the Commission shall by regulation prescribe; and
(3)Public group. Three members, constituting the public group, representing the public, to be appointed directly by the President, by and with the advice and consent of the Senate. Vacancies.Any vacancy on the Labor Board shall be filled in the same manner as the original appointment. Sec. 305. Appointments if nominees not offered by carriers or employees. If either the employees or the carriers fail to make nominations and offer nominees in accordance with the regulations of the Commission, as provided in paragraphs
(1)and
(2)of section 304, within thirty days after the passage of this Act in case of any original appointment to the office of member of the Labor Board, or in case of a vacancy in any such office within fifteen days after such vacancy occurs, the President shall thereupon directly make the appointment, by and with the advice and consent of the Senate. In making any such appointment the President shall, as far as he deems it practicable, select an individual associated in interest with the carriers or employees thereof, whichever he is to represent. Sec. 306. Ineligibility of members.
(a)Any member of the Labor Board who during his term of office is an active member or in the employ of or holds any office in any organization of employees or subordinate officials, or any carrier, or owns any stock or bond thereof, or is pecuniarily interested therein, shall at once become ineligible for further membership upon the Labor Board; but no such member is required to relinquish honorary membership in, or his rights in any insurance or pension or other benefit fund maintained by, any organization of employees or subordinate officials or by a carrier.
(b)Tenure of appointments. Of the original members of the Labor Board, one from each group shall be appointed for a term of three years, one for two years, and one for one year. Their successors shall hold office for terms of five years, except that any member appointed to fill a vacancy shall Pay.Removal restricted.be appointed only for the unexpired term of the member whom he succeeds. Each member shall receive from the United States an annual salary of $10,000. A member may be removed by the President for neglect of duty or malfeasance in office, but for no other cause. Sec. 307. Decisions on matters from Adjustment Boards.
(a)The Labor Board shall hear, and as soon as practicable and with due diligence decide, any dispute involving grievances, rules, or working conditions, in respect to which any Adjustment Board certifies to the Labor Board that in its opinion the Adjustment Board has failed or will fail to reach a decision within a reasonable time, or in respect to which the Labor Board determines that any 471Adjustment Board has so failed or is not using due diligence in itstransportation act. consideration thereof. In case the appropriate Adjustment BoardOf cases of grievances, etc., which may interrupt commerce, not settled by mutual conferences, etc. is not organized under the provisions of section 302, the Labor Board,
(1)upon the application of the chief executive of any carrier or organization of employees or subordinate officials whose members are directly interested in the dispute,
(2)upon a written petition signed by not less than 100 unorganized employees or subordinate officials directly interested in the dispute, or
(3)upon the Labor Board’s own motion if it is of the opinion that the dispute is likely substantially to interrupt commerce, shall receive for hearing, and as soon as practicable and with due diligence decide, any dispute involving grievances, rules, or working conditions which is not decided as provided in section 301 and which such Adjustment Board would be required to receive for hearing and decision under the provisions of section 303.
(b)The Labor Board,
(1)upon the application of the chief executiveDisputes as to wages.Decisions if not settled by mutual conferences. of any carrier or organization of employees or subordinate officials whose members are directly interested in the dispute,
(2)upon a written petition signed by not less than 100 unorganized employees or subordinate officials directly interested in the dispute, or
(3)upon the Labor Board’s own motion if it is of the opinion that the dispute is likely substantially to interrupt commerce, shall receive for nearing, and as soon as practicable and with due diligence decide, all disputes with respect to the wages or salaries of employees or subordinate officials of carriers, not decided as provided in section 301. The Labor Board may upon its own motion within ten daysSuspensions of decisions as to wages made by mutual conferences. after the decision, in accordance with the provisions of section 301, of any dispute with respect to wages or salaries of employees or subordinate officials of carriers, suspend the operation of such decision if the Labor Board is of the opinion that the decision involves such an increase in wages or salaries as will be likely to necessitate a substantial readjustment of the rates of any carrier. The Labor BoardFinal decision. shall hear any decision so suspended and as soon as practicable and with due diligence decide to affirm or modify such suspended decision.
(c)A decision by the Labor Board under the provisions of paragraphsConcurrence in decisions.
(a)or
(b)of this section shall require the concurrence therein of at least 5 of the 9 members of the Labor Board: *Provided*, That in*Proviso*.As to wages.Record and publicity of decisions. case of any decision under paragraph (b), at least one of the representatives of the public shall concur in such decision. All decisions of the Labor Board shall be entered upon the records of the board and copies thereof, together with such statement of facts bearing thereon as the board may deem proper, shall be immediately communicated to the parties to the dispute, the President, each Adjustment Board, and the Commission, and shall be given further publicity in such manner as the Labor Board may determine.
(d)All the decisions of the Labor Board in respect to wages orAll decisions to be just and reasonable. salaries and of the Labor Board or an Adjustment Board in respect to working conditions of employees or subordinate officials of carriers shall establish rates of wages and salaries and standards of working conditions which in the opinion of the board are just and reasonable. In determining the justness and reasonableness of such wages and salaries or working conditions the board shall, so far as applicable,Elements for determination of. take into consideration among other relevant circumstances:
(1)The scales of wages paid for similar kinds of work in other industries;
(2)The relation between wages and the cost of living;
(3)The hazards of the employment;
(4)The training and skill required;
(5)The degree of responsibility;
(6)The character and regularity of the employment; and
(7)Inequalities of increases in wages or of treatment, the result of previous wage orders or adjustments. 472 Sec. 308. transportation act. The Labor Board—
(1)Chairman to be elected. Shall elect a chairman by majority vote of its members;
(2)Central offices at Chicago, Ill. Shall maintain central offices in Chicago, Illinois, but the Labor Board may, whenever it deems it necessary, meet at such other place as it may determine;
(3)Investigations and studies of relations between carriers and employees, directed. Shall investigate and study the relations between carriers and their employees, particularly questions relating to wages, hours of labor, and other conditions of employment and the respective privileges, rights, and duties of carriers and employees, and shall gather, Compilation, etc., of data to be published.compile, classify, digest, and publish, from time to time, data and information relating to such questions to the end that the Labor Board may be properly equipped to perform its duties under this title and that the members of the Adjustment Boards and the public may be properly informed;
(4)Executory regulations. May make regulations necessary for the efficient execution of the functions vested in it by this title; and
(5)Decisions, etc., to be published annually. Shall at least annually collect and publish the decisions and regulations of the Labor Board and the Adjustment Boards and all court and administrative decisions and regulations of the Commission in respect to this title, together with a cumulative index-digest thereof. Sec. 309. Presence at hearings. Any party to any dispute to be considered by an Adjustment Board or by the Labor Board shall be entitled to a hearing either in person or by counsel. Sec. 310. Power of members to secure evidence.
(a)For the efficient administration of the functions vested in the Labor Board by this title, any member thereof may require, by subpoena issued and signed by himself, the attendance of any witness and the production of any book, paper, document, or Depositions.other evidence from any place in the United States at any designated place of hearing, and the taking of a deposition before any designated person having power to administer oaths. In the case of a deposition the testimony shall be reduced to writing by the person taking the deposition or under his direction, and shall then be subscribed to by the deponent. Any member of the Labor Board may administer oaths Witness fees, etc.and examine any witness. Any witness summoned before the board and any witness whose deposition is taken shall be paid the same fees and mileage as are paid witnesses in the courts of the United States.
(b)Assistance of courts. In case of failure to comply with any subpoena or in case of the contumacy of any witness appearing before the Labor Board, the board may invoke the aid of any United States district court. Such court may thereupon order the witness to comply with the requirements of such subpoena, or to give evidence touching the matter in question, as the case may be. Any failure to obey such order may be punished by such court as a contempt thereof.
(c)Testimony compulsory. No person shall be excused from so attending and testifying or deposing, nor from so producing any book, paper, document, or other evidence on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject Criminal immunity of natural persons.him to a penalty or forfeiture; but no natural person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing, as to which in obedience to a subpoena and under oath, he may so testify or produce evidence, documentaryPerjury excepted. or otherwise. But no person shall be exempt from prosecution and punishment for perjury committed in so testifying. Sec. 311. Members to have access to books, records, etc.
(a)When necessary to the efficient administration of the functions vested in the Labor Board by this title, any member, officer, employee, or agent thereof, duly authorized in writing by the board, shall at all reasonable times for the purpose of examination have access to and the right to copy any book, account, record, paper, Penalty for refusal.or correspondence relating to any matter which the board is authorized to consider or investigate. Any person who upon demand refuses any duly authorized member, officer, employee, or agent of 473the Labor Board such right of access or copying, or hinders, obstructs,transportation act. or resists him in the exercise of such right, shall upon conviction thereof be liable to a penalty of $500 for each such offense. Each day during any part of which such offense continues shall constitute a separate offense. Such penalty shall be recoverable in a civil suitSuit for recovery. brought in the name of the United States, and shall be covered into the Treasury of the United States as miscellaneous receipts.
(b)Every officer or employee of the United States, wheneverData from Government officials, etc. requested by any member of the Labor Board or an Adjustment Board duly authorized by the board for the purpose, shall supply to such board any data or information pertaining to the administration of the functions vested in it by this title, which may be contained in the records of his office.
(c)The President is authorized to transfer to the Labor BoardTransfer of records from former agencies, etc., under Federal control. any books, papers, or documents pertaining to the administration of the functions vested in the board by this title, which are in the possession of any agency, or railway board of adjustment in connection therewith, established for executing the powers granted the President under the Federal Control Act and which are no longer necessary to the administration of the affairs of such agency. Sec. 312. Prior to September 1, 1920, each carrier shall pay toCarriers not to reduce fixed pay rates prior to September 1, 1920. each employee or subordinate official thereof wages or salary at a rate not less than that fixed by the decision of any agency, or railway board of adjustment in connection therewith, established for executing the powers granted the President under the Federal Control Act, in effect in respect to such employee or subordinate official immediately preceding 12.01 a. m. March 1, 1920. Any carrier acting in violation of any provision of this section shall upon conviction thereofPenalty for violation. be liable to a penalty of $100 for each such offense. Each such action with respect to any such employee or subordinate official and each day or portion thereof during which the offense continues shall constitute a separate offense. Such penalty shall be recoverable in a civil suit brought in the name of the United States, and shall be coveredSuit for recovery. into the Treasury of the United States as miscellaneous receipts. Sec. 313. The Labor Board, in case it has reason to believe thatBoard to make public violations of decisions. any decision of the Labor Board or of an Adjustment Board is violated by any carrier, or employee or subordinate official, or organization thereof, may upon its own motion after due notice and hearing to all persons directly interested in such violation, determine whether in its opinion such violation has occurred and make public its decision in such manner as it may determine. Sec. 314. The Labor Board may
(1)appoint a secretary, who shallSecretary, and employees authorized. receive from the United States an annual salary of $5,000; and
(2)subject to the provisions of the civil-service laws, appoint and remove such officers, employees, and agents; and make such expendituresContingent expenses. for rent, printing, telegrams, telephone, law books, books of reference, periodicals, furniture, stationery, office equipment, and other supplies and expenses, including salaries, traveling expenses of its members, secretary, officers, employees, and agents, and witness fees, as are necessary for the efficient execution of the functions vested in the board by this title and as may be provided for by Congress from time to time. All of the expenditures of the Labor Board shall be allowed and paid upon the presentation of itemized vouchers therefor approved by the chairman of the Labor Board. Sec. 315. There is hereby appropriated for the fiscal year endingAppropriation for expenses. June 30, 1920, out of any money in the Treasury not otherwise appropriated, the sum of $50,000, or so much thereof as may be necessary, to be expended by the Labor Board, for defraying the expenses of the maintenance and establishment of the board, including the payment of salaries as provided in this title. 474 Sec. 316. transportation act. The powers and duties of the Board of Mediation and Board of Mediation and Conciliation.Duties restricted.Vol. 38, p. 103.Conciliation created by the Act approved July 15, 1913, shall not extend to any dispute which may be received for hearing and decision by any Adjustment Board or the Labor Board. TITLE IV.— AMENDMENTS TO INTERSTATE COMMERCE ACT.Interstate Commerce Act amendments. Sec. 400 Applications of interstate commerce.Vol. 36, p. 544, amended. The first four paragraphs of section 1 of the Interstate Commerce Act, as such paragraphs appear in section 7 of the Commerce Court Act, are hereby amended to read as follows: “(1) Carriers affected. That the provisions of this Act shall apply to common carriers engaged in— “(a) Transporting by rail or by partly rail and water. The transportation of passengers or property wholly by railroad, or partly by railroad and partly by water when both are used under a common control, management, or arrangement for a continuous carriage or shipment; or “(b) Oil pipe lines. The transportation of oil or other commodity, except water and except natural or artificial gas, by pipe line, or partly by pipe line and partly by railroad or by water; or “(c) Transmission of messages.Interstate and foreign commerce embraced. The transmission of intelligence by wire or wireless;— from one State or Territory of the United States, or the District of Columbia, to any other State or Territory of the United States, or the District of Columbia, or from one place in a Territory to another place in the same Territory, or from any place in the United States through a foreign country to any other place in the United States, or from or to any place in the United States to or from a foreign country, Only within the United States.but only in so far as such transportation or transmission takes place within the United States. “(2) Territory included. The provisions of this Act shall also apply to such transportation of passengers and property and transmission of intelligence, but only in so far as such transportation or transmission takes place Exceptions.within the United States, but shall not apply— “(a) Transportation wholly intrastate. To the transportation of passengers or property, or to the receiving, delivering, storage, or handling of property, wholly within one State and not shipped to or from a foreign country from or to anyplace in the United States as aforesaid; “(b) Messages wholly within one State. To the transmission of intelligence by wire or wireless wholly within one State and not transmitted to or from a foreign country from or to any place in the United States as aforesaid; or “(c) Transportation solely by water. To the transportation of passengers or property by a carrier by water where such transportation would not be subject to the provisions of this act except for the fact that such carrier absorbs, out of its port-to-port water rates or out of its proportional through rates, any switching, terminal, lighterage, car rental, trackage, handling, or other charges by a rail carrier for services within the switching, drayage, lighterage, or corporate limits of a port terminal or district. “(3) Terms defined.“Common carrier.” The term ‘common carrier’ as used in this Act shall include all pipe-line companies; telegraph, telephone, and cable companies operating by wire or wireless; express companies; sleeping-car companies; and all persons, natural or artificial, engaged in such transportation or transmission as aforesaid as common carriers for hire. Wherever the word ‘carrier’ is used in this Act it shall be held to “Railroad.”mean ‘common carrier.’ The term ‘railroad’ as used in this Act shall include all bridges, car floats, lighters, and ferries used by or operated in connection with any railroad, and also all the road in use by any common carrier operating a railroad, whether owned or operated under a contract, agreement, or lease, and also all switches, Facilities included.spurs, tracks, terminals, and terminal facilities of every kind used or necessary in the transportation of the persons or property designated 475herein, including all freight depots, yards, and grounds, used ortransportation act. necessary in the transportation or delivery of any such property.“Transportation.” The term ‘transportation’ as used in this Act shall include locomotives, cars, and other vehicles, vessels, and all instrumentalities and facilities of shipment or carriage, irrespective of ownership or of any contract, express or implied, for the use thereof, and all services in connection with the receipt, delivery, elevation, and transfer in transit, ventilation, refrigeration or icing, storage, and handling of property transported. The term ‘transmission’ as used in this“Transmission.” Act shall include the transmission of intelligence through the application of electrical energy or other use of electricity, whether by means of wire, cable, radio apparatus, or other wire or wireless conductors or appliances, and all instrumentalities and facilities for and services in connection with the receipt, forwarding, and delivery of messages, communications, or other intelligence so transmitted, hereinafter also collectively called messages. “(4) It shall be the duty of every common carrier subject to thisCarriers to furnish transportation, establish through routes, rates, etc. Act engaged in the transportation of passengers or property to provide and furnish such transportation upon reasonable request therefor, and to establish through routes and just and reasonable rates, fares, and charges applicable thereto, and to provide reasonable facilities for operating through routes and to make reasonable rules and regulations with respect to the operation of through routes, and providing for reasonable compensation to those entitled thereto; and in case of joint rates, fares, or charges, to establish just, reasonable,Just division of joint rates, etc. and equitable divisions thereof as between the carriers subject to this Act participating therein which shall not unduly prefer or prejudice any of such participating carriers. “(5) All charges made for any service rendered or to be renderedAll charges to be just and reasonable. in the transportation of passengers or property or in the transmission of intelligence by wire or wireless as aforesaid, or in connection therewith, shall be just and reasonable, and every unjust and unreasonable charge for such service or any part thereof is prohibited and declared to be unlawful: *Provided*, That messages by wire or wireless*Provisos*.Classification of messages. subject to the provisions of this Act may be classified into day, night, repeated, unrepeated, letter, commercial, press, Government, and such other classes as are just and reasonable, and different rates may be charged for the different classes of messages: *And provided further*,Messages for carriers. That nothing in this Act shall be construed to prevent telephone, telegraph, and cable companies from entering into contracts with common carriers for the exchange of services. “(6) It is hereby made the duty of all common carriers subjectClassification of property for transportation to be just and reasonable. to the provisions of this Act to establish, observe, and enforce just and reasonable classifications of property for transportation, with reference to which rates, tariffs, regulations, or practices are or mayRegulations. be made or prescribed, and just and reasonable regulations and practices affecting classifications, rates, or tariffs, the issuance, form, and substance of tickets, receipts, and bills of lading, the manner and method of presenting, marking, packing, and delivering propertyBaggage facilities, etc. for transportation, the facilities for transportation, the carrying of personal, sample, and excess baggage, and all other matters relating to or connected with the receiving, handling, transporting, storing, and delivery of property subject to the provisions of this Act which may be necessary or proper to secure the safe and prompt receipt, handling, transportation, and delivery of property subject to the provisions of this Act upon just and reasonable terms, and everyUnjust practices, etc., unlawful. unjust and unreasonable classification, regulation, and practice is prohibited and declared to be unlawful.” Sec. 401. The fifth, sixth, and seventh paragraphs of section 1 ofParagraphs numbered.Vol. 36, p. 547. the Interstate Commerce Act, as such paragraphs appear in section 7 of the Commerce Court Act, are hereby amended by inserting “(7)” 476transportation act.at the beginning of such fifth, paragraph, “(8)” at the beginning of such sixth paragraph, and “(9)” at the beginning of such seventh paragraph. Sec. 402. Car service regulations.Vol.40,p. 101, amended. The paragraphs added to section 1 of the Interstate Commerce Act by the Act entitled “An Act to amend an Act entitled ‘An Act to regulate commerce,’ as amended, in respect of car service, and for other purposes,” approved May 29, 1917, are hereby amended to read as follows: " “(10) Equipment included in the term. The term ‘car service’ in this Act shall include the use, control, supply, movement, distribution, exchange, interchange, and return of locomotives, cars, and other vehicles used in the transportation of property, including special types of equipment, and the supply of trains, by any carrier by railroad subject to this Act. “(11) Safe and adequate service required. It shall be the duty of every carrier by railroad subject to this Act to furnish safe and adequate car service and to establish, observe, and enforce just and reasonable rules, regulations, and practices with respect to car service; and every unjust and unreasonable rule, regulation, and practice with respect to car service is prohibited and declared to be unlawful. “(12) Coal cars.Regulation for just distribution of service. It shall also be the duty of every carrier by railroad to make just and reasonable distribution of cars for transportation of coal among the coal mines served by it, whether located upon its line or lines or customarily dependent upon it for car supply. During any period when the supply of cars available for such service does not equal the requirements of such mines it shall be the duty of the carrier to maintain and apply just and reasonable ratings of such mines and to count each and every car furnished to or used by any Penalty for refusal, etc.such mine for transportation of coal against the mine. Failure or refusal so to do shall be unlawful, and in respect of each car not so counted shall be deemed a separate offense, and the carrier, receiver, or operating trustee so failing or refusing shall forfeit to the United States the sum of $100 for each offense, which may be recovered in a civil action brought by the United States. “(13) Regulations, etc., to be filed with Commission. The Commission is hereby authorized by general or special orders to require all carriers by railroad subject to this Act, or any of them, to file with it from time to time their rules and regulations Inclusion in schedules.with respect to car service, and the Commission may, in its discretion, direct that such rules and regulations shall be incorporated in their schedules showing rates, fares, and charges for transportation, and be subject to any or all of the provisions of this Act relating thereto. “(14) Rules, etc., may be established by Commission. The Commission may, after hearing, on a complaint or upon its own initiative without complaint, establish reasonable rules, regulations, and practices with respect to car service by carriers by railroad subject to this Act, including the compensation to be paid for the use of any locomotive, car, or other vehicle not owned by the carrier using it, and the penalties or other sanctions for nonobservance of such rules, regulations or practices. “(15) Authority of Commission in emergencies. Whenever the Commission is of opinion that shortage of equipment, congestion of traffic, or other emergency requiring immediate action exists in any section of the country, the Commission shall have, and it is hereby given, authority, either upon complaint or upon its own initiative without complaint, at once, if it so orders, without answer or other formal pleading by the interested carrier or carriers, and with or without notice, hearing, or the making or filing Suspension of rules, etc.of a report, according as the Commission may determine:
(a)to suspend the operation of any or all rules, regulations, or practices then established with respect to car service for such time as may be Direct service regardless of ownership.determined by the Commission;
(b)to make such just and reasonable directions with respect to car service without regard to the ownership as between carriers of locomotives, cars; and other vehicles, during such emergency as in its opinion will best promote the service in the 477interest of the public and the commerce of the people, upon suchtransportation act. terms of compensation as between the carriers as they may agreeCompensation. upon, or, in the event of their disagreement, as the Commission may after subsequent hearing find to be just and reasonable;
(c)to requireJoint use of terminals, etc. such joint or common use of terminals, including main-fine track: or tracks for a reasonable distance outside of such terminals, as in its opinion will best meet the emergency and serve the public interest, and upon such terms as between the carriers as they may agree upon, or, in the event of their disagreement, as the Commission may after subsequent hearing find to be just and reasonable; and
(d)toPriority traffic permits, etc. give directions for preference or priority in transportation, embargoes, or movement of traffic under permits, at such time and for such periods as it may determine, and to modify, change, suspend, or annul them. In time of war or threatened war the PresidentPreferences in time of war for national defense, etc. may certify to the Commission that it is essential to the national defense and security that certain traffic shall have preference or priority in transportation, and the Commission shall, under the power herein conferred, direct that such preference or priority be afforded. “(16) Whenever the Commission is of opinion that any carrier byTransportation b y other roads if carrier unable to handle traffic. railroad subject to this Act is for any reason unable to transport the traffic offered it so as properly to serve the public, it may, upon the same procedure as provided in paragraph (15), make such just and reasonable directions with respect to the handling, routing, and movement of the traffic of such carrier and its distribution over other lines of roads, as in the opinion of the Commission will best promote the service in the interest of the public and the commerce of the people, and upon such terms as between the carriers as they mayTerms. agree upon, or, in the event of their disagreement, as the Commission may after subsequent hearing find to be just and reasonable. “(17) The directions of the Commission as to car service and toExecutions of directions. the matters referred to in paragraphs
(15)and
(16)may be made through and by such agents or agencies as the Commission shall designate and appoint for that purpose. It shall be the duty of allCompliance with orders required. carriers by railroad subject to this Act, and of their officers, agents, and employees, to obey strictly and conform promptly to such orders or directions of the Commission, and in case of failure or refusal on the part of any carrier, receiver, or operating trustee to comply with any such order or direction such carrier, receiver, or trustee shall bePenalty for refusal,, etc. liable to a penalty of not less than $100 nor more than $500 for each such offense and $50 for each and every day of the continuance of such offense, which shall accrue to the United States and may be recovered in a civil action brought by the United States: *Provided, however*,*Proviso*.State authority over intrastate business, not impaired. That nothing in this Act shall impair or affect the right of a State, in the exercise of its police power, to require just and reasonable freight and passenger service for intrastate business, except in so far as such requirement is inconsistent with any lawful order of the Commission made under the provisions of this Act. “(18) After ninety days after this paragraph takes effect no carrierFuture extensions of lines, etc., restricted. by railroad subject to this Act shall undertake the extension of its line of railroad, or the construction of a new line of railroad, or shall acquire or operate any fine of railroad, or extension thereof, or shall engage in transportation under this Act over or by means of such additional or extended line of railroad, unless and until there shall first have been obtained from the Commission a certificate thatCertificate of necessity, etc., from Commission required. the present or future public convenience and necessity require or will require the construction, or operation, or construction and operation, of such additional or extended line of railroad, and no carrier by railroad subject to this Act shall abandon all or any portion of a line;Abandonment, etc.,, restricted. of railroad, or the operation thereof, unless and until there shall first have been obtained from the Commission a certificate that the 478transportation act.present or future public convenience and necessity permit of such abandonment. “(19) Applications for certificates. The application for and issuance of any such certificate shall be under such rules and regulations as to hearings and other matters as the Commission may from time to time prescribe, and the provisionsNotice to State authorities, etc. of this Act shall apply to all such proceedings. Upon receipt of any application for such certificate the Commission shall cause notice thereof to be given to and a copy filed with the governor of each State in which such additional or extended line of railroad is proposed to be constructed or operated, or all or any portion of a line of railroad, or the operation thereof, is proposed to be abandoned, with the right to be heard as hereinafter provided with respect to the Advertisement.hearing of complaints or the issuance of securities; and said notice shall also be published for three consecutive weeks in some newspaper of general circulation in each county in or through which said line of railroad is constructed or operates. “(20) Discretionary power of Commission to issue certificates. The Commission snail have power to issue such certificate as prayed for, or to refuse to issue it, or to issue it for a portion or portions of a line of railroad, or extension thereof, described in the application, or for the partial exercise only of such right or privilege, and may attach to the issuance of the certificate such terms and conditions as in its judgment the public convenience and necessity may Authority under certificate.require. From and after issuance of such certificate, and not before, the carrier by railroad may, without securing approval other than such certificate, comply with the terms and conditions contained in or attached to the issuance of such certificate and proceed with the Injunctions for violations.construction, operation, or abandonment covered thereby. Any construction, operation, or abandonment contrary to the provisions of this paragraph or of paragraph
(18)or
(19)of this section may be enjoined by any court of competent jurisdiction at the suit of the United States, the Commission, any commission or regulating body Punishment for.of the State or States affected, or any party in interest; and any carrier which, or any director, officer, receiver, operating trustee, lessee, agent, or person, acting for or employed by such carrier, who knowingly authorizes, consents to, or permits any violation of the provisions of this paragraph or of paragraph
(18)of this section, shall upon conviction thereof be punished by a fine of not more than $5,000 or by imprisonment for not more than three years, or both. “(21) Order of further service, etc., by carrier. The Commission may, after hearing, in a proceeding upon complaint or upon its own initiative without complaint, authorize or require by order any carrier by railroad subject to this Act, party to such proceeding, to provide itself with safe and adequate facilities for performing as a common carrier its car service as that term is used in *Proviso*.Condition of necessity.this Act, and to extend its line or lines: *Provided*, That no such authorization or order shall be made unless the Commission finds, as to such extension, that it is reasonably required in the interest of public convenience and necessity, or as to such extension or facilities that the expense involved therein will not impair the ability of the Penalty for refusal, etc.carrier to perform its duty to the public. Any carrier subject to this Act which refuses or neglects to comply with any order of the Commission made in pursuance of this paragraph shall be liable to a penalty of $100 for each day during which such refusal or neglect continues, which shall accrue to the United States and may be recovered in a civil action brought by the United States. “(22) Tracks, etc., not included in authority. The authority of the Commission conferred by paragraphs
(18)to (21), both inclusive, shall not extend to the construction or abandonment of spur, industrial, team, switching or side tracks, located or to be located wholly within one State, or of street, suburban, or interurban electric railways, which are not operated as a part or parts of a general steam railroad system of transportation.” " 479 Sec. 403. The fifteenth and sixteenth paragraphs of section 1 oftransportation act. the Interstate Commerce Act, added to such section by the ActParagraphs numbered. entitled “An Act to amend the Act to regulate commerce, as amended, and for other purposes,” approved August 10, 1917, are herebyVol. 40, p. 272. amended by inserting “(23)” at the beginning of such fifteenth paragraph and “(24)” at the beginning of such sixteenth paragraph. Sec. 404. Section 2 of the Interstate Commerce Act is hereby amended to read as follows: " “Sec. 2. That if any common carrier subject to the provisionsRates, etc.Special rates, rebates, etc., unlawful.Vol. 24, p. 379, amended.Messages added. of this Act shall, directly or indirectly, by any special rate, rebate, drawback, or other device, charge, demand, collect, or receive from any person or persons a greater or less compensation for any service rendered, or to be rendered, in the transportation of passengers or property or the transmission of intelligence, subject to the provisions of this Act, than it charges, demands, collects, or receives from any other person or persons for doing for him or them a like and contemporaneous service in the transportation or transmission of a like kind of traffic or message under substantially similar circumstances and conditions, such common carrier shall be deemed guilty of unjust discrimination, which is hereby prohibited and declared to be unlawful.” " Sec. 405. The first paragraph of section 3 of the Interstate CommerceParagraph numbered.Vol. 24, p. 380. Act is hereby amended by inserting “(1)” after the section number at the beginning thereof. Section 3 of the Interstate Commerce Act is hereby amended byNew matter. adding after the first paragraph a new paragraph to read as follows: " “(2) From and after July 1, 1920, no carrier by railroad subjectFreight charges to be paid before delivery.Vol. 24, p. 380, amended. to the provisions of this Act shall deliver or relinquish possession at destination of any freight transported by it until all tariff rates and charges thereon have been paid, except under such rules andException. regulations as the Commission may from time to time prescribe to assure prompt payment of all such rates and charges and to prevent unjust discrimmation: *Provided*, That the provisions of this paragraph*Proviso*.Credit allowed Government, States, etc. shall not be construed to prohibit any carrier from extending credit in connection with rates and charges on freight transported for the United States, for any department, bureau, or agency thereof, or for any State or Territory or political subdivision thereof, or for the District of Columbia.” " The second paragraph of section 3 of the Interstate CommerceInterchange of traffic. Act is hereby amended to read as follows: " “(3) All carriers, engaged in the transportation of passengers orEqual facilities for, to be afforded.Vol. 24, p. 380, amended. property, subject to the provisions of this Act, shall, according to their respective powers, afford all reasonable, proper, and equal facilities for the interchange of traffic between their respective lines, and for the receiving, forwarding, and delivering of passengers or property to and from their several lines and those connecting therewith, and shall not discriminate in their rates, fares, and chargesDiscriminations forbidden. between such connecting lines, or unduly prejudice any such connecting line in the distribution of traffic that is not specifically routed by the shipper. “(4) If the Commission finds it to be in the public interest and toUse of terminal facilities by other carriers. be practicable, without substantially impairing the ability of a carrier owning or entitled to the enjoyment of terminal facilities to handle its own business, it shall have power to require the use of any such terminal facilities, including main-line track or tracks for a reasonable distance outside of such terminal, of any carrier, by another carrier or other carriers, on such terms and for such compensation as the carriers affected may agree upon, or, in the event of a failure to agree, as the Commission may fix as just and reasonable for the use so required, to be ascertained on the principle controlling compensa-Compensation.480tiontransportation act. in condemnation proceedings. Such compensation shall be paid or adequately secured before the enjoyment of the use may be Suit if terms unsatisfactory.commenced. If under this paragraph the use of such terminal facilities of any carrier is required to be given to another carrier or other carriers, and the carrier whose terminal facilities are required to be so used is not satisfied with the terms fixed for such use, or if the amount of compensation so fixed is not duly and promptly paid, the carrier whose terminal facilities have thus been required to be given to another carrier or other carriers shall be entitled to recover, by suit or action against such other carrier or carriers, proper damages for any injuries sustained by it as the result of compliance with such requirement, or just compensation for such use, or both, as the case may be.” " Sec. 406. Long and short hauls. Section 4 of the Interstate Commerce Act is hereby amended to read as follows: " “Sec. 4. Greater charge for shorter than longer distance over same route, unlawful.
(1)That it shall be unlawful for any common carrier subject to the provisions of this Act to charge or receive any greater compensation in the aggregate for the transportation of passengers, or of like kind of property, for a shorter than for a longer distance over the same line or route in the same direction, the shorter being included within the longer distance, or to charge any greater compensation as a through rate than the aggregate of the intermediate Vol. 36, p. 547, amended.rates subject to the provisions of this Act, but this shall not be construed as authorizing any common carrier within the terms of this Act to charge or receive as great compensation for a shorter *Provisos*.Allowance in special cases.as for a longer distance: *Provided*, That upon application to the Commission such common carrier may in special cases, after investigation, be authorized by the Commission to charge less for longer than for shorter distances for the transportation of passengers or property; and the Commission may from time to time prescribe the extent to which such designated common carrier may be relieved Compensatory for service.from the operation of this section; but in exercising the authority conferred upon it in this proviso the Commission shall not permit the establishment of any charge to or from the more distant point that is not reasonably compensatory for the service performed; Limitation on competing points.and if a circuitous rail line or route is, because of such circuity, granted authority to meet the charges of a more direct line or route to or from competitive points and to maintain higher charges to or from intermediate points on its line, the authority shall not include intermediate points as to which the haul of the petitioning line or route is not longer than that of the direct line or route between the Water competition.competitive points; and no such authorization shall be granted on account of merely potential water competition not actually in existence: Existing rates, etc., continued.*And provided further*, That rates, fares, or charges existing at the time of the passage of this amendatory Act by virtue of orders of the Commission or as to which application has theretofore been filed with the Commission and not yet acted upon, shall not be required to be changed by reason of the provisions of this section until the further order of or a determination by the Commission. “(2) Restriction on increasing rates reduced to meet water competition. 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 it shall not be permitted to increase such rates unless after hearing by the Commission it shall be found that such proposed increase rests upon changed conditions other than the elimination of water competition.” " Sec. 407. Pooling of freights. The first paragraph of section 5 of the Interstate Commerce Act is hereby amended to read as follows: " “Sec. 5. Agreements, etc., for, unlawful.Vol. 24, p. 380, amended.*Ante*, p. 477.
(1)That, except upon specific approval by order of the Commission as in this section provided, and except as provided in paragraph
(16)of section 1 of this Act, it shall be unlawful for any common carrier subject to this Act to enter into any contract, 481agreement, or combination with any other common carrier or carrierstransportation act. for the pooling of freights of different and competing railroads, or to divide between them the aggregate or net proceeds of the earnings of such railroads, or any portion thereof; and in any case of an agreement for the pooling of freights as aforesaid each day of its continuance shall be deemed a separate offense: *Provided*, That whenever*Proviso*.Commission may allow division of traffic in interest of better service, etc. the Commission is of opinion, after hearing upon application of any carrier or carriers engaged in the transportation of passengers or property subject to this Act, or upon its own initiative, that the division of their traffic or earnings, to the extent indicated by the Commission, will be in the interest of better service to the public, or economy in operation, and will not unduly restrain competition, the Commission shall have authority by order to approve and authorize,Assent by all carriers required. if assented to by all the carriers involved, such division of traffic or earnings, under such rules and regulations, and for such consideration as between such carriers and upon such terms and conditions, as shall be found by the Commission to be just and reasonable in the premises. “(2) Whenever the Commission is of opinion, after hearing, uponAcquisition of control of other carriers authorized.Application to be made. application of any carrier or carriers engaged in the transportation of passengers or property subject to this Act, that the acquisition, to the extent indicated by the Commission, by one of such carriers of the control of any other such carrier or carriers either under a lease or by the purchase of stock or in any other manner not involving the consolidation of such carriers into a single system for ownership and operation, will be in the public interest, the CommissionApproval by Commission. shall have authority by order to approve and authorize such acquisition, under such rules and regulations and for such consideration and on such terms and conditions as shall be found by the Commission to be just and reasonable in the premises. “(3) The Commission may from time to time, for good causeSupplemental orders, etc. shown, make such orders, supplemental to any order made under paragraph
(1)or (2), as it may deem necessary or appropriate. “(4) The Commission shall as soon as practicable prepare andConsolidation of railroad systems to be proposed. adopt a plan for the consolidation of the railway properties of the continental United States into a limited number of systems. In theMaintenance of competition. division of such railways into such systems under such plan, competition shall be preserved as fully as possible and wherever practicable the existing routes and channels of trade and commerce shall be maintained. Subject to the foregoing requirements, the severalUniform rates, etc., to be arranged. systems shall be so arranged that the cost of transportation as between competitive systems and as related to the values of the properties through which the service is rendered shall be the same, so far as practicable, so that these systems can employ uniform rates in the movement of competitive traffic and under efficient management earn substantially the same rate of return upon the value of their respective railway properties. “(5) When the Commission has agreed upon a tentative plan, itPublic notice of proposed plan. shall give the same due publicity and upon reasonable notice, including notice to the Governor of each State, shall hear all persons who may file or present objections thereto. The Commission is authorizedHearings, etc. to prescribe a procedure for such hearings and to fix a time for bringing them to a close. After the hearings are at an end, the CommissionAdoption of consolidation plan. shall adopt a plan for such consolidation and publish the same; but it may at any time thereafter, upon its own motion or upon application, reopen the subject for such changes or modifications as in its judgment will promote the public interest. The consolidations herein provided for shall be in harmony with such plan. “(6) It shall be lawful for two or more carriers by railroad, subjectConsolidation by railroads into one corporation, allowed. to this Act, to consolidate their properties or any part thereof, into one corporation for the ownership, management, and operation of the 482transportation act.Conditions.properties theretofore in separate ownership, management, and operation, under the following conditions: “(a) Approval of Commission, etc. The proposed consolidation must be in harmony with and in furtherance of the complete plan of consolidation mentioned in paragraph
(5)and must be approved by the Commission; “(b) Bends and stock limitations. The bonds at par of the corporation which is to become the owner of the consolidated properties, together with the outstanding capital stock at par of such corporation, shall not exceed the value of Valuation of properties.Vol. 37, p. 701.the consolidated properties as determined by the Commission. The value of the properties sought to be consolidated shall be ascertained by the Commission under section 19a of this Act, and it shall be the duty of the Commission to proceed immediately to the ascertainment of such value for the properties involved in a proposed consolidation upon the filing of the application for such consolidation. “(c) Application for consolidation. Whenever two or more carriers propose a consolidation under this section, they shall present their application therefor to the Commission, and thereupon the Commission shall notify the Governor of each State in which any part of the properties sought to be consolidated is situated and the carriers involved in the proposed consolidation,Hearings, etc. of the time and place for a public hearing. If after such hearing the Commission finds that the public interest will be promoted Order authorizing consolidation.by the consolidation and that the conditions of this section have been or will be fulfilled, it may enter an order approving and authorizing such consolidation, with such modifications and upon such terms and conditions as it may prescribe, and thereupon such consolidation may be effected, in accordance with such order, if all the carriers State laws, etc., not to prevent.involved assent thereto, the law of any State or the decision or order of any State authority to the contrary notwithstanding. “(7) American Railway Express Company.Consolidation of companies into, authorized. The power and authority of the Commission to approve and authorize the consolidation of two or more carriers shall extend and apply to the consolidation of four express companies into the American Railway Express Company, a Delaware corporation, if application for such approval and authority is made to the Commission within thirty days after the passage of this amendatory Act; and pending the decision of the Commission such consolidation shall not be dissolved. “(8) Approved consolidations relieved from antitrust laws.Vol. 26, p. 209; Vol. 28, p. 570.Vol. 38, p. 730. The carriers affected by any order made under the foregoing provisions of this section and any corporation organized to effect a consolidation approved and authorized in such order shall be, and they are hereby, relieved from the operation of the ‘antitrust laws,’ as designated in section 1 of the Act entitled ‘An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes,’ approved October 15, 1914, and of all other restraints or prohibitions by law, State or Federal, in so far as may be necessary to enable them to do anything authorized or required by any order made under and pursuant to the foregoing provisions of this section.” " Sec. 408. Paragraph numbered.Vol. 37, p. 566. The paragraph of section 5 of the Interstate Commerce Act, added to such section by section 11 of the Act entitled “An Act to provide for the opening, maintenance, protection, and operation of the Panama Canal and the sanitation and government of the Canal Zone,” approved August 24, 1912, is hereby amended by inserting “(9)” at the beginning thereof. Other paragraphs numbered, etc.Vol. 37, p. 567.The two paragraphs of section 11 of such Act of August 24, 1912, which follow the paragraph added by such section to section 5 of the Interstate Commerce Act, are hereby made a part of section 5 of the Interstate Commerce Act. The first paragraph so made a part of section 5 of the Interstate Commerce Act is hereby amended by inserting “(10)” at the beginning thereof, and the second such paragraph is hereby amended by inserting “(11)” at the beginning thereof. 483 Sec. 409. Section 6 of the Interstate Commerce Act is herebytransportation act.Schedules of rates. amended by inserting “(1)” after the section number at the beginning of the first paragraph, “(2)” at the beginning of the second paragraph,Paragraphs numbered. “(3)” at the beginning of the third paragraph, “(4)” at theVol. 34, pp. 586, 587. beginning of the fourth paragraph, “(5)” at the beginning of the fifth paragraph, “(6)” at the beginning of the sixth paragraph, “(7)” atVol. 39, p. 604. the beginning of the seventh paragraph, “(8)” at the beginning ofVol. 36, pp. 548, 549. the eighth paragraph, “(9)” at the beginning of the ninth paragraph, “(10)” at the beginning of the tenth paragraph, “(11)” at the beginning of the eleventh paragraph, “(12)” at the beginning of the twelfth paragraph, and “(13)” at the beginning of the thirteenthVol. 37, p. 568. paragraph. Sec. 410. Changes, etc.Vol. 34, p. 587, amended. The third paragraph of section 6 of the Interstate Commerce Act is hereby amended by striking out the period at the end thereof and inserting in lieu thereof a colon and the following: “*Provided further*, That the Commission is hereby authorized toRules for simplifying schedules to be made. make suitable rules and regulations for the simplification of schedules of rates, fares, charges, and classifications and to permit in such rules and regulations the filing of an amendment of or change in any rate, fare, charge, or classification without filing complete schedules covering rates, fares, charges or classifications not changed if, in its judgment, not inconsistent with the public interest.” Sec. 411. The seventh paragraph of section 6 of the InterstateLimitation of “carrier” stricken out.Vol. 34, p. 587, amended. Commerce Act is hereby amended by striking out the proviso at the end. Sec. 412. The two paragraphs under
(a)of the thirteenth paragraphRail and watertransportation.Vol. 37, p. 568, amended.Physical connection of rail lines and dock to be established. of section 6 of the Interstate Commerce Act are hereby amended so as to be combined into one paragraph to read as follows: " “(a) To establish physical connection between the lines of the rail carrier and the dock at which interchange of passengers or property is to be made by directing the rail carrier to make suitable connection between its line and a track or tracks which have been constructed from the dock to the limits of the railroad right of way, or by directing either or both the rail and water carrier, individually or in connection with one another, to construct and connect with the lines of the railDetermination of terms and conditions. carrier a track or tracks to the dock. The Commission shall have full authority to determine and prescribe the terms and conditions upon which these connecting tracks shall be operated, and it may, either in the construction or the operation of such tracks, determine what sum shall be paid to or by either carrier: *Provided*, That construction*Proviso*.Facilities required. required by the Commission under the provisions of this paragraph shall be subject to the same restrictions as to findings of*Ante*, p. 474. public convenience and necessity and other matters as is construction required under section 1 of this Act.” " Sec. 413. Paragraph
(c)of the thirteenth paragraph of section 6Proportional rates. of the Interstate Commerce Act is hereby amended to read as follows: " “(c) To establish proportional rates, or maximum, or minimum, orTerms and conditions to be determined.Vol. 37, p. 568, amended.Minimum added. maximum and minimum proportional rates, by rail to and from the ports to which the traffic is brought, or from which it is taken by the water carrier, and to determine to what traffic and in connection with what vessels and upon what terms and conditions such rates shall apply. By proportional rates are meant those which differ from theProportional rates defined. corresponding local rates to and from the port and which apply only to traffic which has been brought to the port or is carried from the port by a common carrier by water.” " Sec. 414. Section 10 of the Interstate Commerce Act is herebyPenalties.Paragraphs numbered.Vol. 36, pp. 549, 550. amended by inserting “(1)” after the section number at the beginning of the first paragraph, “(2)” at the beginning of the second paragraph, “(3)” at the beginning of the third paragraph, and “(4)” at the beginning of the fourth paragraph, and by inserting after the 484transportation act.Transmission of intelligence added.words “transportation of passengers or property,” in the proviso in the first paragraph thereof, the words “or the transmission of intelligence.” Sec. 415. Powers of Commission.Paragraphs numbered.Vol. 26, pp. 743, 744. Section 12 of the Interstate Commerce Act is hereby amended by inserting “(1)” after the section number at the beginning of the first paragraph, “(2)” at the beginning of the second paragraph, “(3)” at the beginning of the third paragraph, “(4)” at the beginning of the fourth paragraph, “(5)” at the beginning of the fifth paragraph, “(6)” at the beginning of the sixth paragraph, and “(7) at the beginning of the seventh paragraph. Sec. 416. Investigating complaints.Paragraphs numbered.Vol. 36, pp. 550, 551.New matter. Section 13 of the Interstate Commerce Act is hereby amended by inserting “(1)” after the section number at the beginning of the first paragraph and “(2)” at the beginning of the second paragraph, and by adding at the end thereof two new paragraphs to read as follows: " “(3) State authorities to be notified when rates made by them are in issue. Whenever in any investigation under the provisions of this Act, or in any investigation instituted upon petition of the carrier concerned, which petition is hereby authorized to be filed, there shall be brought in issue any rate, fare, charge, classification, regulation, or practice, made or imposed by authority of any State, or initiated by the President during the period of Federal control, the Commission,Consideration of jurisdiction. before proceeding to hear and dispose of such issue, shall cause the State or States interested to be notified of the proceeding. The Commission may confer with the authorities of any State having regulatory jurisdiction over the class of persons and corporations subject to this Act with respect to the relationship between rate Joint hearings, etc.structures and practices of carriers subject to the jurisdiction of such State bodies and of the Commission; and to that end is authorized and empowered, under rules to be prescribed by it, and which may be modified from time to time, to hold joint hearings with any such State regulating bodies on any matters wherein the Commission is Enforcement.empowered to act and where the rate-making authority of a State is or may be affected by the action taken by the Commission. The Commission is also authorized to avail itself of the cooperation, services, records, and facilities of such State authorities in the enforcement of any provision of this Act. “(4) Discriminations in favor of intrastate commerce, unlawful. Whenever in any such investigation the Commission, after full hearing, finds that any such rate, fare, charge, classification, regulation, or practice causes any undue or unreasonable advantage, preference, or prejudice as between persons or localities in intrastate commerce on the one hand and interstate or foreign commerce on the other hand, or any undue, unreasonable, or unjust discrimination Removal by prescribing the rates, etc., to be charged.against interstate or foreign commerce, which is hereby forbidden and declared to be unlawful, it shall prescribe the rate, fare, or charge, or the maximum or minimum, or maximum and minimum, thereafter to be charged, and the classification, regulation, or practice thereafter to be observed, in such manner as, in its judgment, will Observance not affected by State laws, etc.remove such advantage, preference, prejudice, or discrimination. Such rates, fares, charges, classifications, regulations, and practices shall be observed while in effect by the carriers parties to such proceeding affected thereby, the law of any State or the decision or Investigations.order of any State authority to the contrary notwithstanding.” " Sec. 417. Paragraphs numbered. Section 14 of the Interstate Commerce Act is hereby amended by inserting “(1)” after the section number at the beginningVol. 34, p. 589. of the first paragraph, “(2)” at the beginning of the second Violations.paragraph, and “(3)” at the beginning of the third paragraph. Sec. 418. Determination b y Commission if charges, classifications, etc., are unjust, discriminatory, etc. The first four paragraphs of section 15 of the Interstate Commerce Act are hereby amended to read as follows: " “Sec. 15.
(1)That whenever, after full hearing, upon a complaint made as provided in section 13 of this Act, or after full hearing under an order for investigation and hearing made by the Commission on 485its own initiative, either in extension of any pending complaint ortransportation act.Vol. 36, p. 550. without any complaint whatever, the Commission shall be of opinion that any individual or joint rate, fare, or charge whatsoever demanded, charged, or collected by any common carrier or carriers subject toVol. 34, p. 589, amended. this Act for the transportation of persons or property or for the transmission of messages as defined in the first section of this Act, or that any individual or joint classification, regulation, or practice whatsoever of such carrier or carriers subject to the provisions of this Act, 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 Act, the Commission is herebyJust and reasonable rates to be observed. authorized and empowered to determine and prescribe what will be the just and reasonable individual or joint rate, fare, or charge, or rates, fares, or charges, to be thereafter observed in such case, or the maximum or minimum, or maximum and minimum, to beMaximum and minimum added. charged (or, in the case of a through route where one of the carriers is a water line, the maximum rates, fares, and charges applicable thereto), and what individual or joint classification, regulation, or practice is or will be just, fair, and reasonable, to be thereafter followed, and to make an order that the carrier or carriers shallCarrier ordered to conform to rates prescribed. cease and desist from such violation to the extent to which the Commission finds that the same does or will exist, and shall not thereafter publish, demand, or collect any rate, fare, or charge for such transportation or transmission other than the rate, fare, or charge so prescribed, or in excess of the maximum or less than the minimum so prescribed, as the case may be, and shall adopt the classification and shall conform to and observe the regulation or practice so prescribed. “(2) Except as otherwise provided in this Act, all orders of theTaking effect of orders. Commission, other than orders for the payment of money, shall take effect within such reasonable time, not less than thirty days, and shall continue in force until its further order, or for a specified periodContinuance. of time, according as shall be prescribed in the order, unless the same shall be suspended or modified or set aside by the Commission, or be suspended or set aside by a court of competent jurisdiction. “(3) The Commission may, and it shall whenever deemed by it toThrough routes, joint rates, etc., to be established by Commission. be necessary or desirable in the public interest, after full hearing upon complaint or upon its own initiative without a complaint, establish through routes, joint classifications, and joint rates, fares, or charges, applicable to the transportation of passengers or property, or the maxima or minima, or maxima and minima, to be charged (or, inMaxima and minima added. the case of a through route where one of the carriers is a water line, the maximum rates, fares, and charges applicable thereto), and the divisions of such rates, fares, or charges as hereinafter provided, and the terms and conditions under which such through routes shall beWater lines included. operated; and this provision, except as herein otherwise provided, shall apply when one of the carriers is a water line. The CommissionElectric roads excepted. shall not, however, establish any through route, classification, or practice, or any rate, fare, or charge, between street electric passenger railways not engaged in the general business of transporting freight in addition to their passenger and express business, and railroads of a different character; nor shall the Commission have the right toWholly by water excluded. establish any route, classification, or practice, or any rate, fare, or charge when the transportation is wholly by water, and any transportation by water affected by this Act shall be subject to the laws and regulations applicable to transportation by water. “(4) In establishing any such through route the Commission shallThrough routes to embrace entire length of road. not (except as provided in section 3, and except where one of the carriers is a water line), require any carrier by railroad, without its consent, to embrace in such route substantially less than the entire length of its railroad and of any intermediate railroad operated in 486transportation act.conjunction and under a common management or control therewith, Exception.which lies between the termini of such proposed through route, unless such inclusion of lines would make the through route unreasonably long as compared with another practicable through route which could *Proviso*.Temporary through routes for emergencies, authorized.otherwise be established: *Provided*, That in time of shortage of equipment, congestion of traffic, or other emergency declared by the Commission it may (either upon complaint or upon its own initiative without complaint, at once, if it so orders without answer or other formal pleadings by the interested carrier or carriers, and with or without notice, hearing, or the making or filing of a report, according as the Commission may determine) establish temporarily such through routes as in its opinion are necessary or desirable in the public interest. “(5) Livestock transportation.Special regulations governing, in carload lots. Transportation wholly by railroad of ordinary livestock in car-load lots destined to or received at public stockyards shall include all necessary service of unloading and reloading en route, delivery at public stockyards of inbound shipments into suitable pens, and receipt and loading at such yards of outbound shipments, without extra charge therefor to the shipper, consignee or owner, except in cases where the unloading or reloading en route is at the request of the shipper, consignee or owner, or to try an intermediate market, or to comply with quarantine regulations. The Commission may prescribe or approve just and reasonable rules governing each of such Limitation.excepted services. Nothing in this paragraph shall be construed to affect the duties and liabilities of the carriers now existing by virtue of law respecting the transportation of other than ordinary livestock, or the duty of performing service as to shipments other than those to or from public stockyards. “(6) Division of joint rates, etc., to be prescribed in place of unjust, preferential, etc. Whenever, after full hearing upon complaint or upon its own initiative, the Commission is of opinion that the divisions of joint rates, fares, or charges, applicable to the transportation of passengers or property, are or will be unjust, unreasonable, inequitable, or unduly preferential or prejudicial as between the carriers parties thereto (whether agreed upon by such carriers, or any of them, or otherwise established), the Commission shall by order prescribe the just, reasonable, and equitable divisions thereof to be received by the several carriers, and in cases where the joint rate, fare, or charge was established pursuant to a finding or order of the Commission and the divisions thereof are found by it to have been unjust, unreasonable, or inequitable, or unduly preferential or prejudicial, the Commission may also by order determine what (for the period subsequent to the filing of the complaint or petition or the making of the order of investigation) would have been the just, reasonable, and equitable divisions thereof to be received by the several carriers, Considerations for determining divisions.and require adjustment to be made in accordance therewith. In so prescribing and determining the divisions of joint rates, fares and charges, the Commission shall give due consideration, among other things, to the efficiency with which the carriers concerned are operated, the amount of revenue required to pay their respective operating expenses, taxes, and a fair return on their railway property held for and used in the service of transportation, and the importance to the public of the transportation services of such carriers; and also whether any particular participating carrier is an originating, intermediate, or delivering line, and any other fact or circumstance which would ordinarily, without regard to the mileage haul, entitle one carrier to a greater or less proportion than another carrier of the joint rate, fare or charge. “(7) New rates, classifications, etc.Commission to determine lawfulness of. Whenever there shall be filed with, the Commission any schedule stating a new individual or joint rate, fare, or charge, or any new individual or joint classification, or any new individual or joint regulation or practice affecting any rate, fare, or charge, the 487transportation act.Commission shall have, and it is hereby given, authority, either upon complaint or upon its own initiative without complaint, at once, and if it so orders without answer or other formal pleading by the interested carrier or carriers, but upon reasonable notice, to enter upon a hearing concerning the lawfulness of such rate, fare, charge, classification, regulation, or practice; and pending such hearing andSuspension pending decision. the decision thereon the Commission, upon filing with such schedule and delivering to the carrier or carriers affected thereby a statement in writing of its reasons for such suspension, may suspend the operation of such schedule and defer the use of such rate, fare, charge, classification, regulation, or practice, but not for a longer period thanLimit. one hundred and twenty days beyond the time when it would otherwise go into effect; and after full hearing, whether completed beforeFinal determination. or after the rate, fare, charge, classification, regulation, or practice goes into effect, the Commission may make such order with reference thereto as would be proper in a proceeding initiated after it had become effective. If any such hearing can not be concluded withinSuspension extended. the period of suspension, as above stated, the Commission may extend the time of suspenson for a further period not exceeding thirty days, and if the proceeding has not been concluded and an order made at the expiration of such thirty days, the proposedTemporary permission. change of rate, fare, charge, classification, regulation, or practice shall go into effect at the end of such period, but, in case of a proposedRefund if increased rates finally disallowed. increased rate or charge for or in respect to the transportation of property, the Commission may by order require the interested carrier or carriers to keep accurate account in detail of all amounts received by reason of such increase, specifying by whom and in whose behalf such amounts are paid, and upon completion of the hearing and decision may by further order require the interested carrier or carriers to refund, with interest, to the persons in whose behalf such amounts were paid such portion of such increased rates or charges as by its decision shall be found not justified. At any hearing involvingHearings on rates increased since January 1, 1910. a rate, fare, or charge increased after January 1, 1910, or of a rate, fare, or charge sought to be increased after the passage of this Act, the burden of proof to show that the increased rate, fare, or charge, or proposed increased rate, fare, or charge, is just and reasonable shall be upon the carrier, and the Commission shall give to the hearing and decision of such questions preference over all other questions pending before it and decide the same as speedily as possible.” " Sec. 419. The fifth paragraph of section 15 of the InterstateParagraphs numbered.Vol. 36, p. 553. Commerce Act is hereby amended by inserting “(8)” at the beginning of such paragraph. Sec. 420. Section 15 of the Interstate Commerce Act is herebyNew matter. amended by inserting after the fifth paragraph two new paragraphs, to read as follows: " “(9) Whenever property is diverted or delivered by one carrierDiversions of property, contrary to routing instructions.Liability of carriers for. to another carrier contrary to routing instructions in the bill of lading, unless such diversion or delivery is in compliance with a lawful order, rule, or regulation of the Commission, such carriers shall, in a suit or action in any court of competent jurisdiction, be jointly and severally liable to the carrier thus deprived of its right to participate in the haul of the property, for the total amount of the rate or charge it would have received had it participated in the haul of the property.Nonliability if no notice on waybill, etc. The carrier to which the property is thus diverted shall not be liable in such suit or action if it can show, the burden of proof being upon it, that before carrying the property it had no notice, by bill of lading, waybill or otherwise, of the routing instructions. In any judgment which may be rendered the plaintiff shall be allowed to recover against the defendant a reasonable attorney’s fee to be taxed in the case. 488 “(10) transportation act.Commission may direct traffic not routed. With, respect to traffic not routed by the shipper, the Commission may, whenever the public interest and a fair distribution of the traffic require, direct the route which such traffic shall take after it arrives at the terminus of one carrier or at a junction point with another carrier, and is to be there delivered to another carrier.” " Sec. 421. Paragraphs numbered.Vol. 36, p. 553. Section 15 of the Interstate Commerce Act is hereby further amended by inserting “(11)” at the beginning of the sixth paragraph, “(12)” at the beginning of the seventh paragraph, “(13)” at the beginning of the eighth paragraph, and “(14)” at the beginning of the ninth paragraph. Sec. 422. New section.Railroad incomes. The Interstate Commerce Act is further amended by inserting after section 15 a new section to be known as section 15a and to read as follows: " “Sec. 15a. Meaning of “rates.”
(1)When used in this section the term “rates” means Limitation of “carrier.”rates, fares, and charges, and all classifications, regulations, and practices, relating thereto; the term “carrier” means a carrier by railroad or partly by railroad and partly by water, within the continental Specific exclusions.United States, subject to this Act, excluding (a)sleeping-car companies and express companies,
(b)street or suburban electric railways unless operated as a part of a general steam railroad system of transportation,
(c)interurban electric railways unless operated as a part of a general steam railroad system of transportation or engaged in the general transportation of freight, and
(d)any belt-line railroad, terminal switching railroad, or other terminal facility, owned exclusively and maintained, operated, and controlled by any State or political “Net railway operating income,” defined.subdivision thereof; and the term “net railway operating income” means railway operating income, including in the computation thereof Rates.debits and credits arising from equipment rents and joint facility rents. “(2) Adjustment of, by Commission that carriers may earn fair return on property used. In the exercise of its power to prescribe just and reasonable rates the Commission shall initiate, modify, establish or adjust such rates so that carriers as a whole (or as a whole in each of such rate groups or territories as the Commission may from time to time designate) will, under honest, efficient and economical management and reasonable expenditures for maintenance of way, structures and equipment, earn an aggregate annual net railway operating income equal, as nearly as may be, to a fair return upon the aggregate value of the railway property of such carriers held for and used in the service of *Proviso*.Modifications permitted.transportation: *Provided*, That the Commission shall have reasonable latitude to modify or adjust any particular rate which it may find to be unjust or unreasonable, and to prescribe different rates for different sections of the country. “(3) Determination of percentage constituting fair return on property value. The Commission shall from time to time determine and make public what percentage of such aggregate property value constitutes a fair return thereon, and such percentage shall be uniform for all rate groups or territories which may be designated by the Commission. Transportation needs to be considered.In making such determination it shall give due consideration, among other things, to the transportation needs of the country and the necessity (under honest, efficient and economical management of existing transportation facilities) of enlarging such facilities in order to provide *Proviso*.Rate adopted for two years.the people of the United States with adequate transportation: *Provided*, That during the two years beginning March 1, 1920, the Commission shall take as such fair return a sum equal to 512 per centum of such aggregate value, but may, in its discretion, add thereto a sum not exceeding one-half of one per centum of such aggregate value to Addition for betterments.make provision in whole or in part for improvements, betterments or equipment, which, according to the accounting system prescribed by the Commission, are chargeable to capital account. “(4) Determination of property value.Use of valuation investigation.Vol. 37, p. 701. For the purposes of this section, such aggregate value of the property of the carriers shall be determined by the Commission from time to time and as often as may be necessary. The Commission may utilize the results of its investigation under section 19a of this Act, in 489so far as deemed by it available, and shall give due consideration totransportation act. all the elements of value recognized by the law of the land for rate-making purposes, and shall give to the property investment accountProperty investment account, etc. of the carriers only that consideration which under such law it is entitled to in establishing values for rate-making purposes. WheneverAscertained valuation accepted.Vol. 37, p. 702. pursuant to section 19a of this Act the value of the railway property of any carrier held for and used in the service of transportation has been finally ascertained, the value so ascertained shall be deemed by the Commission to be the value thereof for the purpose of determining such aggregate value. “(5) Inasmuch as it is impossible (without regulation and controlCompetitive traffic.Income from, in excess of fair return, to be paid to the United States. in the interest of the commerce of the United States considered as a whole) to establish uniform rates upon competitive traffic which will adequately sustain all the carriers which are engaged in such traffic and which are indispensable to the communities to which they render the service of transportation, without enabling some of such carriers to receive a net railway operating income substantially and unreasonably in excess of a fair return upon the value of their railway property held for and. used in the service of transportation, it is hereby declared that any carrier which receives such an income so in excess of a fair return, shall hold such part of the excess, as hereinafter prescribed, as trustee for, and shall pay it to, the United States. “(6) If, under the provisions of this section, any carrier receives forNet operating income.Division of excess for the year. any year a net railway operating income in excess of 6 per centum of the value of the railway property held for and used by it in the service of transportation, one-half of such excess shall be placed in a reserveTo reserve fund of carrier. fund established and maintained by such carrier, and the remaining one-half thereof shall, within the first four months following the close of the period for which such computation is made, be recoverable byTo general railroad contingent fund. and paid to the Commission for the purpose of establishing and maintaining a general railroad contingent fund as hereinafter described. For the purposes of this paragraph the value of the railway propertyCarriers operating as one system. and the net railway operating income of a group of carriers, which the Commission finds are under common control and management and are operated as a single system, shall be computed for the system as a whole irrespective of the separate ownership and accounting returns of the various parts of such system. In the case of any carrier whichCarriers accepting six months’ guaranty.*Ante*, p. 464. has accepted the provisions of section 209 of this amendatory Act the provisions of this paragraph shall not be applicable to the income for any period prior to September 1, 1920. The value of such railwayProperty valuation. property shall be determined by the Commission in the manner provided in paragraph (4). “(7) For the purpose of paying dividends or interest on its stocks,Reserve fund of carriers.Withdrawal for dividends, etc. bonds or other securities, or rent for leased roads, a carrier may draw from the reserve fund established and maintained by it under the provisions of this section to the extent that its net railway operating income for any year is less than a sum equal to 6 per centum of the value of the railway property held for and used by it in the service of transportation, determined as provided in paragraph (6);Restriction. but such fund shall not be drawn upon for any other purpose. “(8) Such reserve fund need not be accumulated and maintainedUse of excess income above requirement for reserve fund, permitted. by any carrier beyond a sum equal to 5 per centum of the value of its railway property determined as herein provided, and when such fund is so accumulated and maintained the portion of its excess income which the carrier is permitted to retain under paragraph
(6)may be used by it for any lawful purpose. “(9) The Commission shall prescribe rules and regulations for theExcess income payable to Commission.Determination of, etc. determination and recovery of the excess income payable to it under this section, and may require such security and prescribe such reasonable terms and conditions in connection therewith as it may 490transportation act.Adjustments for part of a year.find necessary. The Commission shall make proper adjustments to provide for the computation of excess income for a portion of a year, and for a year in which a change in the percentage constituting a fair return or in the value of a carrier’s railway property becomes effective. “(10) General railroad contingent fund.Use by Commission specified. The general railroad contingent fund so to be recoverable by and paid to the Commission and all accretions thereof shall be a revolving fund and shall be administered by the Commission. It shall be used by the Commission in furtherance of the public interest in railway transportation either by making loans to carriers to meet expenditures for capital account or to refund maturing securities originally issued for capital account, or by purchasing transportation equipment and facilities and leasing the same to carriers, as Investment of unemployed moneys.hereinafter provided. Any moneys in the fund not so employed shall be invested in obligations of the United States or deposited in authorized depositaries of the United States subject to the rules promulgated from time to time by the Secretary of the Treasury relating to Government deposits. “(11) Loans from contingent fund.Applications for, by carriers.Detailed statements of purpose, etc. A carrier may at any time make application to the Commission for a loan from the general railroad contingent fund, setting forth the amount of the loan and the term for which it is desired, the purpose of the loan and the uses to which it will be applied, the present and prospective ability of the applicant to repay the loan and meet the requirements of its obligations in that regard, the character and value of the security offered, and the extent to which the public convenience and necessity will be served. The application shall be accompanied by statements showing such facts and details as the Commission may require with respect to the physical situation, ownership, capitalization, indebtedness, contract obligations, operation, and earning power of the applicant, together with such other facts relating to the propriety and expediency of granting the loan applied for and the ability of the applicant to make good the obligation, as the Commission may deem pertinent to the inquiry. “(12) Commission authorized to grant loans after investigation, etc. If the Commission, after such hearing and investigation, with or without notice, as it may direct, finds that the making, in whole or in part, of the proposed loan from the general railroad contingent fund is necessary to enable the applicant properly to meet the transportation needs of the public, and that the prospective earning power of the applicant and the character and value of the security offered are such as to furnish reasonable assurance of the applicant’s ability to repay the loan within the time fixed therefor, and to meet its other obligations in connection with such loan, the Commission may make a loan to the applicant from such railroad Security, interest, etc.contingent fund, in such amount, for such length of time, and under such terms and conditions as it may deem proper. The Commission shall also prescribe the security to be furnished, which shall be adequate to secure the loan. All such loans shall bear interest at the rate of 6 per centum per annum, payable semiannually to the Commission. Such loans when repaid, and all interest paid thereon, shall be placed in the general railroad contingent fund. “(13) Lease of transportation equipment to carriers.Application to be made to Commission. A carrier may at any time make application to the Commission for the lease to it of transportation equipment or facilities, purchased from the general railroad contingent fund, setting forth the kind and amount of such equipment or facilities and the term for which it is desired to be leased, the uses to which it is proposed to put such equipment or facilities, the present and prospective ability of the applicant to pay the rental charges thereon and to meet the requirements of its obligations under the lease, and the extent to which the public convenience and necessity will be served. Details, etc., of applications.The application shall be accompanied by statements showing such facts and details as the Commission may require with respect to the 491physical situation, ownership, capitalization, indebtedness, contracttransportation act. obligations, operation, and earning power of the applicant, together with such other facts relating to the propriety and expediency of leasing such equipment or facilities to the applicant as the Commission may deem pertinent to the inquiry. “(14) If the Commission, after such hearing and investigation,Commission authorized to furnish equipment, etc. with or without notice, as it may direct, finds that the leasing to the applicant of such equipment or facilities, in whole or in part, is necessary to enable the applicant properly to meet the transportation needs of the public, and that the prospective earning power of the applicant is such as to furnish reasonable assurance of the applicant’s ability to pay promptly the rental charges and meet its other obligations under such lease, the Commission may lease such equipment or facilities purchased by it from the general railroad contingent fund, to the applicant for such length of time, and under such terms and conditions as it may deem proper. The rental chargesRental charges. provided in every such lease shall be at least sufficient to pay a return of 6 per centum per annum, plus allowance for depreciation determined as provided m paragraph
(5)of section 20 of this Act, upon the value of the equipment or facilities leased thereunder. All rental charges and other payments received by the CommissionPayments placed in general contingent fund. in connection with such equipment and facilities, including amounts received under any sale thereof, shall be placed in the general railroad contingent fund. “(15) The Commission may from time to time purchase, contractEquipment facilities, etc.Purchase, etc., from railroad contingent fund authorized. for the construction, repair and replacement of, and sell, equipment and facilities, and enter into and carry out contracts and other obligations in connection therewith, to the extent that moneys included in the general railroad contingent fund are available therefor, and in so far as necessary to enable it to secure and supply equipment and facilities to carriers whose applications therefor are approved under the provisions of this section, and to maintain and dispose of such equipment and facilities. “(16) The Commission may from time to time prescribe such rulesRules, etc., to be prescribed. and regulations as it deems necessary to carry out the provisions of this section respecting the making of loans and the lease of equipment and facilities. “(17) The provisions of this section shall not be construed asReparation for overcharges, etc., not affected. depriving shippers of their right to reparation in case of overcharges, unlawfully excessive or discriminatory rates, or rates excessive in their relation to other rates, but no shipper shall be entitled to recover upon the sole ground that any particular rate may reflect a proportion of excess income to be paid by the carrier to the Commission in the public interest under the provisions of this section. “(18) Any carrier, or any corporation organized to construct andNew railroads.May be permitted to retain excess income for ten years. operate a railroad, proposing to undertake the construction and operation of a new line of railroad may apply to the Commission for permission to retain for a period not to exceed ten years all or any part of its earnings derived from such new construction in excess of the amount heretofore in this section provided, for such disposition as it may lawfully make of the same, and the Commission may, in itsConditions. discretion, grant such permission, conditioned, however, upon the completion of the work of construction within a period to be designated by the Commission in its order granting such permission.” " Sec. 423. The first paragraph of section 16 of the Interstate CommerceEnforcement of law.Paragraph numbered.Vol. 36, p. 554. Act is hereby amended by inserting “(1)” after the section number at the beginning of such paragraph. Sec. 424. The second paragraph of section 16 of the InterstateCourt procedure.Vol. 36, p. 554, amended.New matter. Commerce Act is hereby amended by inserting “(2)” at the beginning of such paragraph, and by striking out the last sentence thereof and inserting in lieu thereof the following as a new paragraph: 492 " “(3) transportation act.Time for filing actions by carriers.By shippers. All actions at law by carriers subject to this Act for recovery of their charges, or any part thereof, shall be begun within three years from the time the cause of action accrues, and not after. All complaints for the recovery of damages shall be filed with the Commission within two years from the time the cause of action accrues, and not after, unless the carrier, after the expiration of such two years or within ninety days before such expiration, begins an action for recovery of charges in respect of the same service, in which case such period of two years shall be extended to and including ninety days from the time such action by the carrier is begun. In either case the cause of action in respect of a shipment of property shall, for the purposes of this section, be deemed to accrue upon delivery or tender of Petitions for enforcement.delivery thereof by the carrier, and not alter. A petition for the enforcement of an order for the payment of money shall be filed in the district court or State court within one year from the date of the order, and not after.” " Sec. 425. Paragraphs numbered.Vol. 36, p. 554. The third, fourth, fifth, and sixth paragraphs of section 16 of the Interstate Commerce Act are hereby amended by inserting “(4)” at the beginning of the third paragraph, “(5)” at the beginning of the fourth paragraph, “(6)” at the beginning of the fifth paragraph, and “(7)” at the beginning of the sixth paragraph. Sec. 426. The seventh paragraph of section 16 of the Interstate Commerce Act is hereby amended to read as follows: " “(8) Penalty for not obeying orders.Vol. 36, p. 554, amended. Any carrier, any officer, representative, or agent of a carrier, or any receiver, trustee, lessee, or agent of either of them, who knowingly fails or neglects to obey any order made under the provisions of sections 3, 13, or 15 of this Act shall forfeit to the United States the sum of $5,000 for each offense. Every distinct violation shall be a separate offense, and in case of a continuing violation each day shall be deemed a separate offense.” " Sec. 427. Paragraphs numbered.Vol. 36, p. 555. The eighth and ninth paragraphs of section 16 of the Interstate Commerce Act are hereby amended by inserting “(9)” at the beginning of the eighth paragraph and “(10)” at the beginning of the ninth paragraph. Sec. 428. The tenth paragraph of section 16 of the Interstate Commerce Act is hereby amended to read as follows: " “(11) Employment of attorneys authorized.Vol. 36, p. 555, amended. The Commission may employ such attorneys as it finds necessary for proper legal aid and service of the Commission or its members in the conduct of their work, or for proper representation of the public interests in investigations made by it or cases or proceedings pending before it, whether at the Commission’s own instance or upon complaint, or to appear for or represent the Commission in any Payment.case in court; and the expenses of such employment shall be paid out of the appropriation for the Commission.” " Sec. 429. Paragraphs numbered.Vol. 36, p. 555. The eleventh and twelfth paragraphs of section 16 of the Interstate Commerce Act are hereby amended by inserting “(12)” at the beginning of the eleventh paragraph and “(13)” at the beginning Conduct of proceedings.of the twelfth paragraph. Sec. 430. Paragraph numbered.Vol. 40, p. 270. Section 17 of the Interstate Commerce Act is hereby amended by inserting “(1)” after the section number at the beginning of the first paragraph. Sec. 431. Divisions of Commission authorized.Minimum number.Vol. 40, p. 271, amended. The second paragraph of section 17 of the Interstate Commerce Act is hereby amended to read as follows: " “(2) The Commission is hereby authorized by its order to divide the members thereof into as many divisions (each to consist of not less than three members) as it may deem necessary, which may be changed from time to time. Such divisions shall be denominated, respectively, division one, division two, and so forth. Any CommissionerAssignment, etc. may be assigned to and may serve upon such division or divisions as the Commission may direct, and the senior in service of the Commissioners constituting any of said divisions shall act as 493chairman thereof. In case of vacancy in any division, or of absencetransportation act.Temporary filling of vacancies. or inability to serve thereon of any Commissioner thereto assigned, the chairman of the Commission or any Commissioner designated by him for that purpose, may temporarily serve on said division until the Commission shall otherwise order.” " Sec. 432. The third and fourth paragraphs of section 17 of the InterstateParagraphs numbered.Vol. 40, p. 271. Commerce Act are hereby amended by inserting “(3)” at the beginning of the third paragraph, and “(4)” at the beginning of the fourth paragraph. The fifth and sixth paragraphs of such section are hereby repealed.Paragraphs repealed. The seventh paragraph of such section is hereby amended byParagraph numbered. inserting “(5)” at the beginning of such paragraph. Sec. 433. Section 18 of the Interstate Commerce Act is herebySalaries.Paragraphs numbered.Vol. 25, p. 861. amended by inserting “(1)” after the section number at the beginning of the first paragraph, and “(2)” at the beginning of the second paragraph. Section 19a of the Interstate Commerce Act is hereby amended byPhysical valuation of railroads.Paragraphs lettered.Vol. 37, pp. 701, 702. inserting “(a)” after the section number at the beginning of the first paragraph, “(b)” at the beginning of the second paragraph, “(c)” at the beginning of the seventh paragraph, “(d)” at the beginning of the eighth paragraph, “(e)” at the beginning of the ninth paragraph, “(f)” at the beginning of the tenth paragraph, “(g)s” at the beginning of the eleventh paragraph, “(h)” at the beginning of the twelfth paragraph, “(i)” at the beginning of the thirteenth paragraph, “(j)” at the beginning of the fourteenth paragraph, “(k)” at the beginning of the fifteenth paragraph, and “(1)” at the beginning of the sixteenth paragraph. Sec. 434. Section 20 of the Interstate Commerce Act is herebyAnnual reports.Paragraphs numbered.Vol. 34, p. 593. amended by inserting “(1)” after the section number at the beginning of the first paragraph, “(2)” at the beginning of the second paragraph, “(3) at the beginning of the third paragraph, and “(4)” at the beginning of the fourth paragraph. Sec. 435. The fifth paragraph of section 20 of the Interstate CommerceAccounts. Act is hereby amended to read as follows: " “(5) The Commission may, in its discretion, prescribe the forms ofForms, etc., may be prescribed. any and all accounts, records, and memoranda to be kept by carriers subject to the provisions of this Act, including the accounts, records, and memoranda of the movement of traffic, as well as of the receipts and expenditures of moneys. The Commission shall, as soon asDepreciation charges. practicable, prescribe, for carriers subject to this Act, the classes of property for which depreciation charges may properly be included under operating expenses, and the percentages of depreciation which shall be charged with respect to each of such classes of property,Classification of, to be prescribed. classifying the carriers as it may deem proper for this purpose. The Commission may, when it deems necessary, modify the classes and percentages so prescribed. The carriers subject to this Act shall notRestriction. charge to operating expenses any depreciation charges on classes of property other than those prescribed by the Commission, or charge with respect to any class of property a percentage of depreciation other than that prescribed therefor by the Commission. No such carrier shall in any case include in any form under its operating or other expenses any depreciation or other charge or expenditure included elsewhere as a depreciation charge or otherwise under its operating or other expenses. The commission shall at all times haveAccess to records, etc. access to all accounts, records, and memoranda, including all documents, papers, and correspondence now or hereafter existing, and kept or required to be kept by carriers subject to this Act, and the provisions of this section respecting the preservation and destruction of books, papers, and documents shall apply thereto, and it shall be unlawful for such carriers to keep any other accounts, records, or memoranda than those prescribed or approved by the Commission, 494transportation act.Examinations, etc.and it may employ special agents or examiners, who shall have authority under the order of the Commission to inspect and examine any and all accounts, records, and memoranda, including all documents, papers, and correspondence now or hereafter existing, and kept or required to be kept by such carriers. This provision shall apply Federal control records included.to receivers of carriers and operating trustees. The provisions of this section shall also apply to all accounts, records, and memoranda, including all documents, papers, and correspondence now or hereafter existing, kept during the period of Federal control, and placed by the President in the custody of carriers subject to this Act.” " Sec. 436. Paragraph numbered.Vol. 34, p. 594. The sixth paragraph of section 20 of the Interstate Commerce Act is hereby amended by inserting “(6)” at the beginning of such paragraph. Paragraph numbered.Vol. 35, p. 649, amended.The seventh paragraph of section 20 of the Interstate Commerce Act is hereby amended by striking out “Par. 7,” at the beginning of such paragraph and inserting “(7)” in lieu thereof. Paragraphs numbered.Vol. 34, pp. 594, 595.The eighth to twelfth paragraphs, inclusive, of section 20 of the Interstate Commerce Act are hereby amended by inserting “(8)” at the beginning of the eighth paragraph, “(9)” at the beginning of the ninth paragraph, “(10)” at the beginning of the tenth paragraph, “(11)” at the beginning of the eleventh paragraph, and “(12)” at the beginning of the twelfth paragraph. Sec. 437. Responsibility for losses. The eleventh paragraph of section 20 of the Interstate Commerce, Act is hereby amended by inserting immediately before the first proviso thereof the following: " Determination if by carrier by water.Vol. 38, p. 1197, amended.“*Provided*, That if the loss, damage, or injury occurs while the property is in the custody of a carrier by water the liability of such carrier shall be determined by and under the laws and regulations applicable to transportation by water, and the liability of the initial carrier shall be the same as that of such carrier by water.” " Sec. 438. Time for filing claims. The third proviso of the eleventh paragraph of section 20 of the Interstate Commerce Act (not counting the proviso added by section 437 of this Act) is hereby amended to read as follows: " Contracts providing shorter time than legal period, unlawful.Vol. 38, p. 1197, amended.“*Provided further*, That it shall be unlawful for any such common carrier to provide by rule, contract, regulation, or otherwise a shorter period for giving notice of claims than ninety days, for the filing of claims than four months, and for the institution of suits than two years, such period for institution of suits to be computed from the day when notice in writing is given by the carrier to the claimant that the carrier has disallowed the claim or any part or parts thereof specified in the notice.” " Sec. 439. Issue of securities.New section. The Interstate Commerce Act is further amended by inserting therein a new section between section 20 and section 21, to be designated section 20a, and to read as follows: " “Sec. 20a. Meaning of “carrier ” as used herein.
(1)That as used in this section the term ‘carrier’ means a common carrier by railroad (except a street, suburban, or interurban electric railway which is not operated as a part of a general steam railroad system of transportation) which is subject to this Act, or any corporation organized for the purpose of engaging in transportation by railroad subject to this Act. “(2) Issue of securities by carriers unlawful unless authorized by Commission. From and after one hundred and twenty days after this section takes effect it shall be unlawful for any carrier to issue any share of capital stock or any bond or other evidence of interest in or indebtedness of the carrier (hereinafter in this section collectively termed ‘securities’) or to assume any obligation or liability as lessor, lessee, guarantor, indorser, surety, or otherwise, in respect of the securities of any other person, natural or artificial, even though permitted by the authority creating the carrier corporation, unless Investigation of purposes and uses.and until, and then only to the extent that, upon application by the carrier, and after investigation by the Commission of the purposes and uses of the proposed issue and the proceeds thereof, or of the 495proposed assumption of obligation or liability in respect of thetransportation act. securities of any other person, natural or artificial, the Commission by order authorizes such issue or assumption. The CommissionObject and necessity for issue, etc., to be shown. shall make such order only if it finds that such issue or assumption:
(a)is for some lawful object within its corporate purposes, and compatible with the public interest, which is necessary or appropriate for or consistent with the proper performance by the carrier of service to the public as a common carrier, and which will not impair its ability to perform that service, and
(b)is reasonably necessary and appropriate for such purpose. “(3) The Commission shall have power by its order to grant orAuthority given to Commission. deny the application as made, or to grant it in part and deny it in part, or to grant it with such modifications and upon such terms and conditions as the Commission may deem necessary or appropriate in the premises, and may from time to time, for good cause shown, make such supplemental orders in the premises as it may deem necessary or appropriate, and may by any such supplemental order modify the provisions of any previous order as to the particular purposes, uses, and extent to which, or the conditions under which, any securities so theretofore authorized or the proceeds thereof may be applied, subject always to the requirements of the foregoing paragraph (2). “(4) Every application for authority shall be made in such formApplications to be submitted to Commission.Verification, etc. and contain such matters as the Commission may prescribe. Every such application, as also every certificate of notification hereinafter provided for, shall be made under oath, signed and filed on behalf of the carrier by its president, a vice president, auditor, comptroller, or other executive officer having knowledge of the matters therein set forth and duly designated for that purpose by the carrier. “(5) Whenever any securities set forth and described in anyNotification of disposal of pledged, etc., securities. application for authority or certificate of notification as pledged or held unencumbered in the treasury of the carrier shall, subsequent to the filing of such application or certificate, be sold, pledged, repledged, or otherwise disposed of by the carrier, such carrier shall, within ten days after such sale, pledge, repledge, or other disposition, file with the Commission a certificate of notification to that effect, setting forth therein all such facts as may be required by the Commission. “(6) Upon receipt of any such application for authority the CommissionAction on applications.Notification, etc. shall cause notice thereof to be given to and a copy filed with the governor of each State in which the applicant carrier operates. The railroad commissions, public service or utilities commissions,Representation by State authorities. or other appropriate State authorities of the State shall have the right to make before the Commission such representations as they may deem just and proper for preserving and conserving the rights and interests of their people and the States, respectively, involved in such proceedings. The Commission may hold hearings, if it seesHearings. fit, to enable it to determine its decision upon the application for authority. “(7) The jurisdiction conferred upon the Commission by thisJurisdiction of Commission exclusive. section shall be exclusive and plenary, and a carrier may issue securities and assume obligations or liabilities in accordance with the provisions of this section without securing approval other than as specified herein. “(8) Nothing herein shall be construed to imply any guaranty orNo Federal guaranty of issues. obligation as to such securities on the part of the United States. “(9) The foregoing provisions of this section shall not apply toProvisions not applicable to short-time notes. notes to be issued by the carrier maturing not more than two years after the date thereof and aggregating (together with all other then outstanding notes of a maturity of two years or less) not more than 5 per centum of the par value of the securities of the carrier then out-496transportation act.standing. In the case of securities having no par value, the par value for the purposes of this paragraph shall be the fair market value as Notification of issue of notes.of the date of issue. Within ten days after the making of such notes the carrier issuing the same shall file with the Commission a certificate of notification, in such form as may from time to time be determined and prescribed by the Commission, setting forth as nearly as may be the same matters as those required in respect of applications for *Proviso*.Funding requirements.authority to issue other securities: *Provided*, That in any subsequent funding of such notes the provisions of this section respecting other securities shall apply. “(10) Carriers to make reports of issues, disposition, etc. The Commission shall require periodical or special reports from each carrier hereafter issuing any securities, including such notes, which shall show, in such detail as the Commission may require, the disposition made of such securities and the application of the proceeds thereof. “(11) Securities issued without authorization, etc., of Commission, void. Any security issued or any obligation or liability assumed by a carrier, for which under the provisions of this section the authorization of the Commission is required, shall be void, if issued or assumed without such authorization therefor having first been obtained, or if issued or assumed contrary to any term or condition of such order of authorization as modified by any order supplemental thereto Procedure preceding entry of order.entered prior to such issuance or assumption; but no security issued or obligation or liability assumed in accordance with all the terms and conditions of such an order of authorization therefor as modified by any order supplemental thereto entered prior to such issuance or assumption, shall be rendered void because of failure to comply with any provision of this section relating to procedure and other matters Liability of carrier, officers, etc., for void securities.preceding the entry of such order of authorization. If any security so made void or any security in respect to which the assumption of obligation or liability is so made void, is acquired by any person for value and in good faith and without notice that the issue or assumption is void, such person may in a suit or action in any court of competent jurisdiction hold jointly and severally liable for the full amount of the damage sustained by him in respect thereof, the carrier which issued the security so made void, or assumed the obligation or liability so made void, and its directors, officers, attorneys, and other agents, who participated in any way in the authorizing, issuing, hypothecating, or selling of the security so made void or in the authorizing of the Recovery of consideration, if acquired from carrier.assumption of the obligation or liability so made void. In case any security so made void was directly acquired from the carrier issuing it the holder may at his option rescind the transaction and upon the surrender of the security recover the consideration given therefor. Punishment of director, etc., of carrier concurring in forbidden issue, etc.Any director, officer, attorney or agent of the carrier who knowingly assents to or concurs in any issue of securities or assumptions of obligation or liability forbidden by this section, or any sale or other disposition of securities contrary to the provisions of the Commission’s order or orders in the premises, or any application not authorized by the Commission of the funds derived by the carrier through such sale or other disposition of such securities, shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not less than $1,000 nor more than $10,000, or by imprisonment for not less than one year nor more than three years, or by both such fine and imprisonment, in the discretion of the court. “(12) Unauthorized holding office in more than one carrier unlawful. After December 31, 1921, it shall be unlawful for any person to hold the position of officer or director of more than one carrier, unless such holding shall have been authorized by order of the Commission, upon due showing, in form and manner prescribed by the Commission, that neither public nor private interests will be adversely Officer forbidden to benefit personally in sale of securities, etc.affected thereby. After this section takes effect it shall be unlawful for any officer or director of any carrier to receive for his own benefit, directly or indirectly, any money or thing of value in respect of the 497negotiation, hypothecation, or sale of any securities issued or to betransportation act. issued by such carrier, or to share in any of the proceeds thereof, or to participate in the making or paying of any dividends of an operating carrier from any funds properly included in capital account. Any violation of these provisions shall be a misdemeanor, and onPunishment for violations. conviction in any United States court having jurisdiction shall be punished by a fine of not less than $1,000 nor more than $10,000, or by imprisonment for not less than one year nor more than three years, or by both such fine and imprisonment, in the discretion of the court.” " Sec. 440. Section 24 of the Interstate Commerce Act is herebyVol. 40, p. 270, amended. amended to read as follows: " “Sec. 24. That the Commission is hereby enlarged so as to consistMembership of Commission enlarged.Salaries increased. of eleven members, with terms of seven years, and each shall receive $12,000 compensation annually. The qualifications of the members and the manner of payment of their salaries shall be as already provided by law. Such enlargement of the Commission shall be accomplishedAppointment of new members. through appointment by the President, by and with the advice and consent of the Senate, of two additional Interstate Commerce Commissioners, one for a term expiring December 31, 1923, and one for a term expiring December 31, 1924. The terms of the presentExpiration of terms. commissioners, or of any successor appointed to fill a vacancy caused by the death or resignation of any of the present commissioners, shall expire as heretofore provided by law. Their successors and the successorsSuccessors to serve seven years. of the additional commissioners herein provided for shall be appointed for the full term of seven years, except that any person appointed to fill a vacancy shall be appointed only for the unexpired term of the commissioner whom he shall succeed. Not more thanPolitical selection. six commissioners shall be appointed from the same political party. Hereafter the salary of the secretary of the Commission shall bePay of secretary increased. $7,500 a year.” " Sec. 441. The Interstate Commerce Act is hereby further amendedVol.40,p. 271, amended.New sections. by adding at the end thereof three new sections, to read as follows: " “Sec. 25
(1)That every common carrier by water in foreign commerce,Foreign shipments.American vessels to file schedules of dates, routes, etc., of voyages. whose vessels are registered under the laws of the United States, shall file with the Commission, within thirty days after this section becomes effective and regularly thereafter as changes are made, a schedule or schedules showing for each of its steam vessels intended to load general cargo at ports in the United States for foreign destinations
(a)the ports of loading,
(b)the dates upon which such vessels will commence to receive freight and dates of sailing,
(c)the route and itinerary such vessels will follow and the ports of call for which cargo will be carried. “(2) Upon application of any shipper a carrier by railroad shallCarriers by water to furnish rates for proposed shipments. make request for, and the carrier by water shall upon receipt of such request name, a specific rate applying for such sailing, and upon such commodity as shall be embraced in the inquiry, and shall name in connection with such rate, port charges, if any, which accrue in addition to the vessel’s rates and are not otherwise published by the railway as in addition to or absorbed in the railway rate. Vessel rates, if conditioned upon quantity of shipment, must be so stated and separate rates may be provided for carload and less than carload shipments. The carrier by water, upon advices from a carrier byReservation of space if quoted rate accepted by rail carrier. railroad, stating that the quoted rate is firmly accepted as applying upon a specifically named quantity of any commodity, shall, subject to such conditions as the Commission by regulation may prescribe, make firm reservation from unsold space in such steam vessel as shall be required for its transportation and shall so advise the carrier by railroad, in which advices shall be included the latest available information as to prospective sailing date of such vessel. 498 “(3) transportation act.Changes in schedules to be filed. As the matters so required to be stated in such schedule or schedules are changed or modified from time to time, the carrier shall file with the Commission such changes or modifications as early as practicable after such modification is ascertained. The Commission is authorized to make and publish regulations not inconsistent herewith governing the manner and form in which such carriers are to Information to shippers to be published.comply with the foregoing provisions. The Commission shall cause to be published in compact form, for the information of shippers of commodities throughout the country, the substance of such schedules, Copies to railway carriers.and furnish such publications to all railway carriers subject to this Act, in such quantities that railway carriers may supply to each of their agents who receive commodities for shipment in such cities and towns as may be specified by the Commission, a copy of said publication; the intent being that each shipping community sufficiently important, from the standpoint of the export trade, to be so specified by the Commission shall nave opportunity to know the sailings and routes, and to ascertain the transportation charges of such vessels Distribution, etc.engaged in foreign commerce. Each railway carrier to which such publication is furnished by the Commission is hereby required to distribute the same as aforesaid and to maintain such publication as it is issued from time to time, in the hands of its agents. The CommissionRegulations to be made. is authorized to make such rules and regulations not inconsistent herewith respecting the distribution and maintenance of such publications in the several communities so specified as will further the intent of this section. “(4) Railway carrier to issue through bills of lading on receiving consignments. When any consignor delivers a shipment of property to any of the places so specified by the Commission, to be delivered by a railway carrier to one of the vessels upon which space has been reserved at a specified rate previously ascertained, as provided herein, for the transportation by water from and for a port named in the aforesaid schedule, the railway carrier shall issue a through bill of Charges, etc.lading to the point of destination. Such bill of lading shall name separately the charge to be paid for the railway transportation, water transportation, and port charges, if any, not included in the rail or water transportation charge; but the carrier by railroad shall not be liable to the consignor, consignee, or other person interested in the Limited liability of water carrier.shipment after its delivery to the vessel. The Commission shall, in such maimer as will preserve for the carrier by water the protection of limited liability provided by law, make such, rules and regulations not inconsistent herewith as will prescribe the form of such through Delivery to vessel.bill of lading. In all such cases it shall be the duty of the carrier by railroad to deliver such shipment to the vessel as a part of its undertaking as a common carrier. “(5) Through bill not arrangement for continuous carriage. The issuance of a through bill of lading covering shipments provided for herein shall not be held to constitute ‘an arrangement for continuous carriage or shipment’ within the meaning of this Act. “Sec. 26. Safety devices.Carriers to install, on order by Commission. That the Commission may, after investigation, order any carrier by railroad subject to this Act, within a time specified in the order, to install automatic train-stop or train-control devices or other safety devices, which comply with specifications and requirements prescribed by the Commission, upon the whole or any part of its railroad, such order to be issued and published at least two years *Proviso*.Limit of liability of carriers.before the date specified for its fulfillment: *Provided*, That a carrier shall not be held to be negligent because of its failure to install such devices upon a portion of its railroad not included in the order; and any action arising because of an accident happening upon such portion of its railroad shall be determined without consideration of the use of Penalty for refusal to comply with order, etc.such devices upon another portion of its railroad. Any common carrier which refuses or neglects to comply with any order of the 499Commission made under the authority conferred by this sectiontransportation act. shall be liable to a penalty of $100 for each day that such refusal or neglect continues, which shall accrue to the United States, and may be recovered in a civil action brought by the United States. “Sec. 27. That this Act may be cited as the ‘Interstate CommerceTitle declared. Act.’” " TITLE V.— MISCELLANEOUS PROVISIONS.Miscellaneous. Sec. 500. It is hereby declared to be the policy of Congress toPolicy declared to promote water transportation, etc. promote, encourage, and develop water transportation, service, and facilities in connection with the commerce of the United States, and to foster and preserve in full vigor both rail and water transportation. It shall be the duty of the Secretary of War, with the object ofInland waterway transportation.Investigation by Secretary of War of specified matters to encourage, etc. promoting, encouraging, and developing inland waterway transportation facilities in connection with the commerce of the United States, to investigate the appropriate types of boats suitable for different classes of such waterways; to investigate the subject of water terminals, both for inland waterway traffic and for through traffic by water and rail, including the necessary docks, warehouses, apparatus, equipment, and appliances in connection therewith, and also railroad spurs and switches connecting with such terminals, with a view to devising the types most appropriate for different locations, and for the more expeditious and economical transfer or interchange of passengers or property between carriers by water and carriers by rail; to advise with communities, cities, and towns regarding the appropriate location of such terminals, and to cooperate with them in the preparation of plans for suitable terminal facilities; to investigate the existing status of water transportation upon the different inland waterways of the country, with a view to determining whether such waterways are being utilized to the extent of their capacity, and to what extent they are meeting the demands of traffic, and whether the water carriers utilizing such waterways are interchanging traffic with the railroads; and to investigate any other matter that may tend to promote and encourage inland water transportation. It shall also be the province and duty of the Secretary of War toCompilation, distribution, etc., of valuable information. compile, publish, and distribute, from time to time, such useful statistics, data, and information concerning transportation on inland waterways as he may deem to be of value to the commercial interests of the country. The words “inland waterway” as used in this section shall be construedGreat Lakes included. to include the Great Lakes. Sec. 501. The effective date on and after which the provisions ofAntitrust Act, 1914.Prohibition against officers having interest in purchases.Date extended.Vol. 38, p. 734.*Proviso*.Application to new corporations. section 10 of the Act entitled “An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes,” approved October 15, 1914, shall become and be effective is hereby deferred and extended to January 1, 1921: *Provided*, That such extension shall not apply in the case of any corporation organized after January 12, 1918. Sec. 502. That if any clause, sentence, paragraph, or part of thisInvalidity of any clause, etc., not to affect remainder of Act. Act shall for any reason be adjudged by any court of competent jurisdiction to be invalid such judgment shall not affect, impair, or invalidate the remainder of the Act, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment has been rendered. Approved, February 28, 1920.