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§ 5. Combinations and consolidations of carriers.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 45 section 716.

§ 12. Authority and duties of Commission; witnesses; depositions.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1655 of this title.

§ 13. Complaints to and investigations by Commission.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 15a, 1655 of this title.

§ 14. Reports and decisions of Commission.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1655 of this title.

§ 15a. Fair return for carriers.

(1) Definition of "rates".

When used in this section, the term "rates" means rates, fares, and charges, and all classifications, regulations, and practices relating thereto.

(2) Ratemaking criteria.

In the exercise of its power to prescribe just and reasonable rates the Commission shall give due consideration, among other factors, to the effect of rates on the movement of traffic by the carrier or carriers for which the rates are prescribed; to the need, in the public interest, of adequate and efficient railway transportation service at the lowest cost consistent with the furnishing of such service; and to the need of revenues sufficient to enable the carriers, under honest, economical, and efficient management to provide such service.

(3) Same; competition between carriers of different modes of transportation.

In a proceeding involving competition between carriers of different modes of transportation subject to this Act, the Commission, in determining whether a rate is lower than a reasonable minimum rate, shall consider the facts and circumstances attending the movement of the traffic by the carrier or carriers to which the rate is applicable. Rates of a carrier shall not be held up to a particular level to protect the traffic of any other mode of transportation, giving due consideration to the objectives of the national transportation policy declared in this Act.

(4) Adjustment of interstate rates.

(a) Duty of Commission; petitions; requirements and considerations.

The Commission shall by rule, on or before August 1, 1973, establish requirements for petitions for adjustment of interstate rates of common carriers subject to this chapter based upon increases in expenses of such carriers resulting from any increases in taxes under the Railroad Retirement Tax Act, as amended, occurring on or before January 1, 1975, or as a result of the enactment of the Railroad Retirement Amendments of 1973. Such requirements, established pursuant to section 553 of Title 5 (with time for comment limited so as to meet the required date for establishment and subject to future amendment or revocation), shall be designed to facilitate fair and expeditious action on any such petition as required in subparagraph (b) of

this paragraph by disclosing such information as the amount needed in rate increases to offset such increases in expenses and the availability of means other than a rate increase by which the carrier might absorb or offset such increases in expenses. (b) Same; interim rates; public notice requirement. Notwithstanding any other provision of law, the Commission shall, within thirty days of the filing of a verified petition in accordance with rules promulgated under subparagraph (a) of this paragraph, by any carrier or group of carriers subject to this chapter, permit the establishment of increases in the general level of the interstate rates of said carrier or carriers in an amount approximating that needed to offset increases in expenses theretofore experienced or demonstrably certain to occur commencing on or before the effective date of the increased rates, as a result of any increases in taxes under the Railroad Retirement Tax Act, as amended, occurring on or before January 1, 1975, or as a result of the enactment of the Railroad Retirement Amendments of 1973. Such increases in rates may be made effective on not more than thirty nor less than ten days' notice to the public, notwithstanding any outstanding orders of the Commission. To the extent necessary to effectuate their establishment, rates so increased shall be relieved from the provisions of section 4 of this title and may be published in tariff supplements of the kind ordinarily authorized in general increase proceedings. (c) Same; final rate determination; hearings, burden of proof; general ratemaking criteria; refunds, interest rate.

The Commission shall within sixty days from the date of establishment of interim rates under subparagraph (b) of this paragraph commence hearings for the purpose of making the final rate determination. The Commission shall then proceed to make such final rate determination with the carrier having the burden of proof. In making such determination, the Commission may take into account all factors appropriate to ratemaking generally under this chapter and shall determine such final rates under the standards and limitations applicable to ratemaking generally under this chapter. If the increases in rates finally authorized by the Commission are less than the increases in rates initially made effective, the carrier or carriers shall, subject to such tariff provisions as the Commission shall deem sufficient, make such refunds (in the amount by which the initially increased rate collected exceeds the finally authorized increased rate) as may be ordered by the Commission, plus a reasonable rate of interest as determined by the Commission. Nothing contained in this paragraph shall limit or otherwise affect the authority of the Commission to authorize or permit to become effective any increase in rates other than the increases herein specified. (d) Adjustment of intrastate rates. (A) Duty of State authority; petitions; interim rates; refunds, interest.

The State authority having jurisdicton over petitions for intrastate rate increases by any carrier or group of carriers subject to this chapter shall, within 60 days of the filing of a verified petition for such

increases based upon increases in expenses of such carriers as a result of any increases in taxes under the Railroad Retirement Tax Act, as amended, occurring on or before January 1, 1975, or as a result of the enactment of the Railroad Retirement Amendments of 1973, act upon said petition. Such State authority may grant an interim rate increase or a final rate increase. If such State authority grants any interim rate increases, it shall thereafter investigate and determine the reasonableness of such increases and modify them to the extent required by applicable law. To the extent that any such interim increases are reduced as a result of the action of a State authority, the carrier or carriers shall make such refunds (in the amount by which the initially increased rate collected exceeds the finally authorized increased rate) as may be ordered by such State authority, plus a reasonable rate of interest as determined by the State authority. (B) Same; action by Commission where complete denial or absence of timely action by State authority; grant of interim rates by Commission; final rate determination by State authority, refunds.

If a State authority denies in toto such a petition filed with it by such carrier or group of carriers seeking relief regarding such intrastate rate increases or does not act finally on such petition withn 60 days from the presentation thereof, the Commission shall, within 30 days of the filing of a verified petition by such carrier or group of carriers relating to such intrastate rates, act upon such petition by applying the ratemaking criteria of subparagraph (c) of this paragraph. If the Commisson grants, in whole or in part, such petition by any carrier or group of carriers, the increase authorized shall be considered as an interim rate increase as provided in subparagraph (A) above and shall be subject to final determination by the State authority in accordance with the procedures prescribed for interim intrastate rate increases as provided above, including the ordering of refunds by such State authority.

(C) Same; action by Commission where partial denial by State authority results in discrimination. If a State authority denies in part such a petition filed with it by such carrier or group of carriers, within 60 days from the presentation thereof, the Commission shall, within 30 days of the filing of a verified petition by such carrier or group of carriers relating to the intrastate rates involved, act upon such petition by applying the criteria of section 13 (4) of this title.

(D) Same; stay of refund pending final order under section 13(4).

Nothing in subparagraph (A) or (B) shall be construed to abrogate the authority of the Commission under section 13 (4) of this title and in the event a carrier or group of carriers subject to a refund requirement under subparagraph (A) or (B) files a petition under section 13(3) of this title, the refund requirement shall be stayed pending final order of the Commission under section 13(4) of this title. (E) Reasonable level for increased freight rates; preservation of market patterns and relationships and port relationships.

Any increased freight rates authorized shall not exceed a reasonable level by types of traffic, com

modities, or commodity groups and shall preserve existing market patterns and relationships and present port relationships by increase1 limitations within and between the major districts to the extent possible without authorizing unreasonable increases in any district. (As amended July 10, 1973, Pub. L. 93-69, title II, § 201, 87 Stat. 166.)

REFERENCES IN TEXT

The Railroad Retirement Tax Act, referred to in subsecs. (4) (a), (b), (d) (A), is classified to chapter 22 (sec. 3201 et seq.) of title 26, Internal Revenue Code.

The Railroad Retirement Amendments of 1973, referred to in subsecs. (4) (a), (b), (d) (A), means the amendments made by Pub. L. 93-69. For complete classification of Pub. L. 93-69 to this Code, see Short Title note set out under section 228b of Title 45, Railroads.

AMENDMENTS

1973-Par. (4). Pub. L. 93-69 added par. (4).

SHORT TITLE

Section 202 of Pub. L. 93-69 provided that: "This title [enacting par. (4) of this section] may be cited as the 'Railroad Rate Adjustment Act of 1973'."

§§ 16, 18, 20.

SECTIONS REFERRED TO IN OTHER SECTIONS These sections are referred to in section 1655 of this title.

§ 22. Restrictions; quotations of rates for United States Government

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 45 section 546.

§ 26a. State or subdivision income tax withholding on compensation paid to interstate railroad, express company, or sleeping car company employees.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 26 section 6362.

Chapter 2.-LEGISLATION SUPPLEMENTARY TO "INTERSTATE COMMERCE ACT"

§ 66. Same; payment for transportation. (a) Deduction of overcharges.

Subject to such standards as shall be promulgated by the Secretary of the Treasury and the Comptroller General of the United States, payment for transportation of persons or property for or on behalf of the United States by any carrier or forwarder shall be made upon presentation of bills therefor, prior to audit or settlement by the General Accounting Office, but the right is reserved to the United States Government to deduct the amount of any overcharge by any carrier or forwarder from any amount subsequently found to be due such carrier or forwarder.

The term "overcharges" shall be deemed to mean charges for transportation services in excess of those applicable thereto under tariffs lawfully on file with the Interstate Commerce Commission, the Civil Aeronautics Board, the Federal Maritime Commission, and any State transportation regulatory agency, and charges in excess of those applicable thereto under rates, fares, and charges established pursuant to section 22 of this title, or other equivalent contract, arrangement, or exemption from regulation: Provided, however, That such deductions shall be made within three years (not including any

1 So in original.

time of war) from the time of payment of bills: Provided further, That every claim cognizable by the General Accounting Office for charges for transportation within the purview of this section shall be forever barred unless such claim shall be received in the General Accounting Office within three years (not including any time of war) from the date of (1) accrual of the cause of action thereon, or (2) payment of charges for the transportation involved, or (3) subsequent refund for overpayment of such charges, or (4) deduction made pursuant to this section, whichever is later.

(b) Advance payment.

Pursuant to regulations prescribed by the head of a Government agency or his designee and in conformity with such standards as shall be promulgated jointly by the Secretary of the Treasury and the Comptroller General of the United States, bills for passenger or freight transportation services to be furnished the United States by any carrier or forwarder may be paid in advance of completion of the services, without regard to section 529 of Title 31: Provided, That such carrier or forwarder has issued the usual ticket, receipt, bill of lading, or equivalent document covering the service involved, subject to later recovery by deduction or otherwise of any payments made for any services not received as ordered by the United States.

(c) Definition.

The term "head of a Government agency" means any individual or group of individuals having final decisionmaking responsibility for any department, commission, board, service, Government corporation, instrumentality, or other establishment or body in the United States Government. (As amended Oct. 25, 1972, Pub. L. 92-550, § 1, 86 Stat. 1163.)

AMENDMENTS

1972 Subsec. (a). Pub. L. 92-550, § 1(a), designated existing provisions as subsec. (a) and, in subsec. (a) as so designated, substituted provisions for payment for transportation of persons or property for or on behalf of the United States by carriers or forwarders subject to standards promulgated by the Secretary of the Treasury and the Comptroller General of the United States for provisions for payment for transportation of United States mail, persons or property for or on behalf of the United States by common carriers subject to the Interstate Commerce Act and the Civil Aeronautics Act of 1938, and expanded the definition of "overcharges" to encompass all modes of transportation and all means of contractual arrangements or exemptions from regulations.

Subsecs. (b), (c). Pub. L. 92-550, § 1(b), added subsecs. (b) and (c).

SHORT TITLE

Section 2 of Pub. L. 92-550 provided that: "This Act [amending this section] may be cited as the 'Transportation Payment Act of 1972'."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1, 304a, 908, 1006a of this title; title 2 section 142b; title 31 section 82c.

Chapter 8.-INTERSTATE COMMERCE ACT,
PART II; MOTOR CARRIERS

CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in title 45 sections 741, 744, 771, 799.

§ 302. Application of provisions.

§ 303. Definitions and exceptions

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 42 section 4917.

§ 305. Administration.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1655 of this title; title 47 section 410.

§305a. Joint Board, transportation requests.

REPEATED

Pub. L. 92-74, title II, § 201, Aug. 10, 1971, 85 Stat. 211; Pub. L. 92-398, title II, § 201, Aug. 22, 1972, 86 Stat. 588; Pub. L. 93-98, title II, § 201, Aug. 16, 1973, 87 Stat. 338.

§ 316. Rates, fares, and charges.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1655 of this title.

§ 320. Accounts, records and reports.

(b) Period covered by report; time of filing; oath.

Said annual reports shall contain all the required information either (1) for the period of twelve months ending on the thirty-first day of December in each year, unless the Commission shall specify a different date; or (2) for a thirteen-period accounting year ending at the close of one of the last seven days of each calendar year, if the person making the report keeps his books on the basis of such an accounting year, and elects to make such report on the basis of such accounting year, subject to such rules and regulations as the Commission may prescribe. Any annual report shall be made out under oath and filed with the Commission at its office in Washington within three months after the close of the year for which the report is made, unless additional time be granted in any case by the Commission. Such periodical or special reports as may be required by the Commission under subsection (a) of this section shall also be under oath, whenever the Commission so requires.

(As amended July 7, 1972, Pub. L. 92-338, 86 Stat. 423.)

AMENDMENTS

1972-Subsec. (b). Pub. L. 92-338 added provision giving option to the carriers to make annual reports on a thirteen-period accounting year basis subject to rules and regulations prescribed by the Commission.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1655 of this title.

§ 322. Unlawful operation.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1655 of this title.

§ 325a. State or subdivision income tax withholding on compensation paid to interstate motor vehicle employees.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 26 section 6362.

Chapter 12.-INTERSTATE COMMERCE ACT, PART III; WATER CARRIERS

CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in title 45 sections 741, 744,

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 47 section 410.

791.

§ 903. Application of provisions; exemptions.

*

(b) Nothing in this chapter shall apply to the transportation by a water carrier of commodities in bulk. This subsection shall apply only in the case of commodities in bulk which are (in accordance with the existing custom of the trade in the handling and transportation of such commodities as of June 1, 1939) loaded and carried without wrappers or containers and received and delivered by the carrier without transportation mark or count. This subsection shall not apply to transportation subject, at the time this part takes effect, to the provisions of the Intercoastal Shipping Act, 1933, as amended.

(As amended Dec. 27, 1973, Pub. L. 93–201, § 1, 87 Stat. 838.)

REFERENCES IN TEXT

The Intercoastal Shipping Act, 1933, as amended, referred to in subsec. (b), is classified to chapter 23A of Title 46, Shipping.

AMENDMENTS

1973-Subsec. (b). Pub. L. 93–201 struck out provisions requiring that vessel cargo spaces be used for carrying not more than three bulk commodities, provisions relating to the concurrent transportation of commodities in bulk in the same vessel with other commodities, and provisions defining vessel.

IMPLEMENTATION OF RECOMMENDATIONS OF SECRETARY OF TRANSPORTATION FOR REPEAL OF THREE COMMODITY RESTRICTION AND NO-MIXING RULE

Sections 2 and 3 of Pub. L. 91-590, Dec. 28, 1970, 84 Stat. 1587 which limited the duration of the amendment of subsec. (b) of this section by Pub. L. 91-590 to three years, required the Secretary of Transportation to undertake a study of the system of economic regulation of dry bulk commodity transportation and report to Congress with recommendations for legislation, and required water carriers operating under the exemption under subsec. (b) of this section to file such reports containing such information as the Secretary of Transportation may prescribe in the conduct of the study, were repealed by section 2 of Pub. L. 93-201, Dec. 27, 1973, 87 Stat. 838.

§ 922b. Filing of information return or other report for income tax purposes with State or subdivision by water carrier on compensation paid to interstate employees.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 26 section 6362.

Chapter 13.-INTERSTATE COMMERCE ACT, PART IV; FREIGHT FORWARDERS

CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in title 45 sections 741, 744, 791.

§ 1017. Enforcement and procedure.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1655 of this title.

Chapter 15.-INTERNATIONAL AVIATION FACILITIES

§§ 1152 to 1155, 1157 to 1160.

TRANSFER OF FUNCTIONS

The effective date of Reorg. Plan No. 4 of 1970, referred to in the note under this section in the 1970 ed. of the Code, is Oct. 3, 1970, and not Oct. 30, 1970, as shown therein.

Chapter 19.-INTERSTATE COMMERCE ACT, PART V; LOAN GUARANTIES

Sec. 1239a.

Audit by Comptroller General; financial transactions subject to audit; access to books, records, etc.; report to Congress; contents [New]. CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in section 1655 of this title, title 45 sections 741, 744, 791.

§ 1234. Conditions and limitations; statement of findings; declarations of dividends.

(a) No guaranty shall be made under section 1233 of this title

(1) unless the Commission finds that without such guaranty, in the amount thereof, the carrier would be unable to obtain necessary funds, on reasonable terms, for the purposes for which the loan is sought;

(2) if in the judgment of the Commission the loan involved is at a rate of interest which is unreasonably high;

(3) if the terms of such loan permit full repayment more than twenty-five years after the date thereof; or

(As amended July 13, 1972, Pub. L. 92-348, § 5(a), 86 Stat. 463.)

AMENDMENTS

1972 Subsec. (a) (3). Pub. L. 92-348 substituted "twenty-five" for "fifteen".

§ 1235. Modification of guaranty.

The Commission may consent to the modification of the provisions as to rate of interest, time of payment of interest or principal, security, if any, or other terms and conditions of any guaranty which it shall have entered into pursuant to this chapter, or the renewal or extension of any such guaranty for any period of time not exceeding twenty-five years from the date of the original guaranty, whenever the Commission shall determine it to be equitable to do so. (As amended July 13, 1972, Pub. L. 92-348, § 5(b), 86 Stat. 463.)

AMENDMENTS

1972-Pub. L. 92-348 added provisions limiting the renewal or extension of any guaranty to any period of time not exceeding twenty-five years from the date of the original guaranty.

§ 1239a. Audit by Comptroller General; financial transactions subject to audit; access to books, records, etc.; report to Congress; contents. (a) In any case in which

(1) there is outstanding any guaranty by the Commission made under this chapter; or

(2) the Secretary of the Treasury is required to make any payment as a consequence of any guaranty by the Commission made under this chapter; the financial transactions of the common carrier by railroad subject to this Act with respect to which such guaranty was made may be audited by the Comptroller General of the United States under such rules and regulations as he may prescribe. The representatives of the Comptroller General shall have access to all books, accounts, records, reports, files, and other papers, things, or property belonging to or in use by such common carrier by railroad pertaining to its financial transactions and necessary to

facilitate the audit, and such representatives shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians.

(b) A report of each such audit shall be made by the Comptroller General to the Congress. The report to the Congress shall contain such comments and information as the Comptroller General may deem necessary to inform the Congress of the financial operations and condition of the common carrier by railroad involved in such audit, together with such recommendations with respect thereto as he may deem advisable. The report shall also show specifically any program, expenditure, or other financial transaction or undertaking observed in the course of the audit, which, in the opinion of the Comptroller General, adversely affects the financial operations or condition of the common carrier by railroad involved in such audit or lessens the protection afforded the United States at the time the original guaranty was made. A copy of each report shall be furnished to the Commission at the time it is submitted to the Congress. (Feb. 4, 1887, ch. 104, pt. V, § 510, as added July 13, 1972, Pub. L. 92-348, § 6, 86 Stat. 463.)

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SUBCHAPTER II.-CIVIL AERONAUTICS
BOARD; GENERAL POWERS

§ 1324. General powers and duties of the Board.
GUARANTY OF LOANS FOR PURCHASE OF AIRCRAFT
AND EQUIPMENT

Pub. L. 85-307, Sept 7, 1957, 71 Stat. 629, as amended by Pub. L. 86-3, § 21, Mar. 18, 1959, 73 Stat. 13; Pub. L. 86-70, § 39, June 25, 1959, 73 Stat. 150; Pub. L. 86-624, $37, July 12, 1960, 74 Stat. 421; Pub. L. 87-820, §§ 1-7, Oct. 15, 1962, 76 Stat. 936; Pub. L. 90-568, §§ 1, 2, Oct. 12, 1968, 82 Stat. 1003; Pub. L. 92-556, Oct. 25, 1972, 86 Stat. 1170, provided:

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§ 1343. General powers and duties of Administrator. TERMINATION OF ADVISORY COMMITTEES

Advisory Committees in existence on January 5, 1973, to terminate not later than the expiration of the two-year period following January 5, 1973, unless, in the case of a committee established by the President or an officer of the Federal Government, such committee is renewed by appropriate action prior to the expiration of such two-year period, or in the case of a committee established by the Congress, its duration is otherwise provided by law, see sections 3(2) and 14 of Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, 776, set out in the Appendix to Title 5, Government Organization and Employees.

§§ 1347 to 1350, 1354, 1355.

SECTIONS REFERRED TO IN OTHER SECTIONS These sections are referred to in section 1655 of this title.

SUBCHAPTER IV.-AIR CARRIER ECONOMIC

REGULATION

§ 1374. Rates of carriage for persons and property; duty to provide service, rates, and divisions; foreign air transportation rates; discrimination. (a) (1) It shall be the duty of every air carrier to provide and furnish interstate and overseas air transportation, as authorized by its certificate, upon reasonable request therefor and to provide reasonable through service in such air transportation in connection with other air carriers; to provide safe and adequate service, equipment, and facilities in connection with such transportation; to establish, observe, and enforce just and reasonable individual and joint rates, fares, and charges, and just and reasonable classifications, rules, regulations, and practices relating to such air transportation; and, in case of such joint rates, fares, and charges, to establish just, reasonable, and equitable divisions thereof as between air carriers participating therein which shall not unduly prefer or prejudice any of such participating air carriers.

(2) It shall be the duty of every air carrier and foreign air carrier to establish, observe, and enforce just and reasonable individual and joint rates, fares, and charges, and just and reasonable classifications, rules, regulations, and practices relating to foreign air transportation; and, in case of such joint rates, fares, and charges, to establish just, reasonable, and equitable divisions thereof as between air carriers or foreign air carriers participating therein which shall not unduly prefer or prejudice any of such participating air carriers or foreign air carriers.

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