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Rail News Home Federal Legislation & Regulation

7/17/2008



Rail News: Federal Legislation & Regulation

Thirteen-member coalition calls on Congress to pass 'railroad antitrust' bill


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Thirteen organizations representing rail shippers, state regulators, farmers and consumers have banded together in an effort to end railroads' antitrust law exemptions.

The coalition is calling on Congress to pass the Railroad Antitrust Enforcement Act (H.R. 1650/S. 772), which would permit the U.S. Justice Department and Federal Trade Commission to review railroad mergers under antitrust law, and eliminate antitrust exemptions for mergers, acquisitions, collective rate-making and coordination among railroads.

The legislation — which also would allow state attorneys general and private parties to sue for treble damages — passed the House and Senate judiciary committees, and awaits action by the full House and Senate.

The coalition comprises the Consumer Federation of America; National Association of Regulatory Utility Commissioners; National Association of State Utility Consumer Advocates; National Rural Electric Cooperative Association; American Corn Growers Association; Consumers United For Rail Equity (CURE); Western Coal Traffic League; Edison Electric Institute; Alliance for Rural America; American Agriculture Movement Inc.; American Chemistry Council; American Forest & Paper Association; and American Public Power Association.

"We're all together ... speaking with one voice to call on Congress to protect American consumers from the hidden tax of freight rail overcharges," said CURE Executive Director Bob Szabo in a prepared statement. "Standing alone on the other side are the big four railroads who control more than 90 percent of the rail traffic in this country."

However, railroad and Association of American Railroads officials believe the legislation would create a dual regulatory system and retroactively undo agreements, decisions and rulings currently in effect. In addition, the bill would hamper railroads' ability to expand capacity and lead to more freight moving via highway instead of rail, they believe.