417:, to chair the ICC, O’Neal began to develop the possibilities for opening up the rail market to competition. Also, in 1978 a group of major railroads formed an organization called TRAIN (Transportation by Rail for Agricultural and Industrial Needs) to support further deregulation of the industry. The carriers' perception was that with collective rate making limited, and a Commission apparently more interested in letting their rates go down than go up, the regulatory system no longer favored them.
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258:(2) the encouragement of efforts to restructure the system on a more economically justified basis, including planning authority in the Secretary of Transportation, an expedited procedure for determining whether merger and consolidation applications are in the public interest, and continuing reorganization authority;
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This kind of fundamental change in government policy takes time. Every
President since Harry S. Truman has called in vain for increased competition and reform of our regulated industries. For example, the Landis Report commissioned by President-elect Kennedy in 1960 recommended major policy revisions
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Section 202 provided that rail rates would not be considered ‘unjust and unreasonable’ if they exceeded long run marginal costs (on the low side) and (as to the high side) applied to traffic as to which the railroads did not have ‘market dominance’ (a term related to concepts of monopoly power). The
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In addition to providing short-term financial assistance, Congress in approving this legislation has taken a fundamental step to restore the long-term economic health of this vital
American industry. The regulatory reform provisions in this bill are long overdue, and I commend the Congress for this
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It is the purpose of the
Congress in this Act to provide the means to rehabilitate and maintain the physical facilities, improve the operations and structure, and restore the financial stability of the railway system of the United States, and to promote the revitalization of such railway system, so
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An equally important task facing us now is to extend the principles of reform embodied in this legislation to the aviation and motor carrier industries. In these industries, we must strive to create a regulatory climate which relies on competitive forces, rather than on inflexible and bureaucratic
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The financial assistance provisions of the act were largely palliative and transitional. They were extended on the condition that changes in the regulatory system governing railroads be enacted, with the hope that a regulatory system which gave railroads more freedom in pricing and service
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of 1980. The
Staggers Act extended the principles of the 4R Act. One of the key changes from the 1976 Act was allowance of secret contracts between carriers and shippers, not limited to large-investment situations and not effectively subject to regulatory review. According to former
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in transportation regulation. But for more than a quarter of a century, the Nation has had no results. In contrast, the
Railroad Revitalization and Regulatory Reform Act is the first significant reform of transportation regulation by any administration--or Congress.
283:(2) foster competition among all carriers by railroad and other modes of transportation, to promote more adequate and efficient transportation services, and to increase the attractiveness of investing in railroads and rail-service-related enterprises;
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that this mode of transportation will remain viable in the private sector of the economy and will be able to provide energy-efficient, ecologically compatible transportation services with greater efficiency, effectiveness, and economy, through -
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strongly opposed the Act. The regulatory provisions had been enacted over several commissioners' objections, and the
Commission's implementation of the Act initially had little impact on the way the rail industry functioned.
195:(the "3R Act") to salvage viable freight operations from Penn Central and other failing rail lines in the northeast, mid-Atlantic and midwestern regions, through the creation of Conrail. Conrail began operations in 1976.
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Section 208 prohibited collective rate making on movements which a rail carrier could handle entirely on its own system (‘single line rates’), and buttressed the right of ‘independent action’ by rail carriers.
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261:(3) financing mechanisms that will assure adequate rehabilitation and improvement of facilities and equipment, implementation of the final system plan, and implementation of the Northeast Corridor project;
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Large shippers of goods by rail also wished to have more flexibility in the rail market. The result of this alignment between carriers, the shippers, and the Carter administration’s ICC, was the
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directives of
Federal agencies, to determine which firm will provide the desired transportation services and at what price. The time has come to place greater reliance on market competition.
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arrangements, subject to greater competitive constraints, would yield a more viable industry and better service for its users. Studies of the legislative history of the Act indicate that the
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Section 207 provided the
Commission with authority to exempt from regulation entirely categories of traffic, upon making findings in substance that regulation was unnecessary.
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administration secured the regulatory provisions only by threatening a veto of any act containing financial assistance for railroads but no reform of the regulatory system.
264:(4) transitional continuation of service on light-density rail lines that are necessary to continued employment and community well-being throughout the United States;
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railroads were to be allowed to explore this ‘zone of reasonableness’, with presumptions against suspension or challenge of proposed rates, at a rate of 7% per year.
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Provision of operating funds for
Conrail, which had not received direct federal funds under the 3R Act. Initial funding for 1976 was $ 484 million (in 1986 dollars)
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267:(5) auditing, accounting, reporting, and other requirements to protect Federal funds and to assure repayment of loans and financial responsibility; and
289:(4) promote the establishment of railroad rate structures which are more sensitive to changes in the level of seasonal, regional, and shipper demand;
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analyst
Christopher Barnekov, such contracts allowed rail carriers and shippers much to develop more efficient transport arrangements.
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The Best Transportation System in the World: Railroads, Trucks, Airlines, and American Public Policy in the Twentieth Century
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Section 206 provided for, in substance, contract rates for transactions involving an investment of more than $ 1 million.
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Federal regulation of railroads was reduced significantly for the first time since passage of the 1887
286:(3) permit railroads greater freedom to raise or lower rates for rail services in competitive markets;
588:. The Past and Future of U.S. Passenger Rail Service (Report). CBO. pp. 5–16. Publication 14769.
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295:(6) formulate standards and guidelines for determining adequate revenue levels for railroads; and
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United States. Regional Rail Reorganization Act of 1973 (Northeast Region Rail Services Act).
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Initial funds were provided to Amtrak of approximately $ 85.2 million for the NEC acquisition.
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United States. Railroad Revitalization and Regulatory Reform Act. (Rail Services Act).
573:(Report). Washington, D.C.: U.S. Congressional Budget Office (CBO). Publication 15210.
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The Act was the first in a series of laws which collectively are described as the
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292:(5) promote separate pricing of distinct rail and rail-related services;
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Implementation of the Conrail "Final System Plan," as formulated by the
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The "Declaration of policy" in the Act (Section 101), was as follows:
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industry and provided transitional operating funds following the 1970
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298:(7) modernize and clarify the functions of railroad rate bureaus.
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It is declared to be the policy of the Congress in this Act to -
137:. The law approved the "Final System Plan" for the newly created
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that established the basic outlines of regulatory reform in the
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of transportation in the United States. It was followed by the
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Following the massive bankruptcy of the Penn Central in 1970,
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280:(1) balance the needs of carriers, shippers, and the public;
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created Amtrak to take over the failed company's intercity
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Rose, Mark H.; Seely, Bruce E.; Barrett, Paul F. (2006).
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The changes in regulation provided for were as follows:
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222:) for the Northeast Corridor (NEC) rail line between
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History of rail transportation in the United States
495:United States. Rail Passenger Service Act of 1970.
58:"Railroad Revitalization and Regulatory Reform Act"
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135:bankruptcy of Penn Central Transportation Company
123:Railroad Revitalization and Regulatory Reform Act
693:United States federal transportation legislation
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330:In a signing statement, President Ford stated,
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571:Economic Viability of Conrail: A Special Study
439:History of rail transport in the United States
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218:, tracks, and related facilities (such as
607:. Washington, DC: Brookings Institution.
599:Derthick, Martha; Quirk, Paul J. (1985).
125:of 1976, often called the "4R Act," is a
109:Learn how and when to remove this message
193:Regional Rail Reorganization Act of 1973
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586:"Chapter 2. A Brief History of Amtrak"
584:Pinkston, Elizabeth (September 2003).
255:(1) ratemaking and regulatory reform;
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413:, originally appointed by President
47:adding citations to reliable sources
532:Tooltip Public Law (United States)
502:Tooltip Public Law (United States)
464:Tooltip Public Law (United States)
336:farsighted and necessary action.
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688:United States railroad regulation
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632:. Ohio State University Press.
34:needs additional citations for
569:Dayton, Mark R. (1986-08-01).
141:and authorized acquisition of
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603:The Politics of Deregulation
384:help to improve this article
659:Legal Information Institute
427:Congressional Budget Office
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377:to meet Knowledge (XXG)'s
189:Rail Passenger Service Act
169:Motor Carrier Act of 1980
127:United States federal law
16:United States federal law
161:Airline Deregulation Act
237:Interstate Commerce Act
698:1976 in rail transport
554:. Approved 1974-01-02.
516:. Approved 1970-10-30.
486:. Approved 1976-02-05.
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270:(6) necessary studies.
191:. Congress passed the
214:Amtrak could acquire
683:1976 in American law
664:Full text of the law
655:Full text of the law
397:Many members of the
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187:service, under the
148:and facilities by
143:Northeast Corridor
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41:Please help
36:verification
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307:Gerald Ford
248:(a) Purpose
677:Categories
552:§ 741
538:, 87
508:, 84
484:§ 801
470:, 90
445:References
371:term paper
274:(b) Policy
175:Background
69:newspapers
382:. Please
433:See also
390:in tone.
350:Reaction
181:Congress
163:(1978),
131:railroad
528:Pub. L.
498:Pub. L.
460:Pub. L.
388:neutral
375:cleanup
199:Summary
139:Conrail
83:scholar
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536:93–236
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228:Boston
150:Amtrak
146:tracks
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540:Stat.
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90:JSTOR
76:books
634:ISBN
609:ISBN
514:1327
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