Legislation
Rail Bill Wins Panel Approval
Reform of freight railroads is headed to the House floor and a Senate committee following a House committee’s vote Sept. 16 to subject the industry to federal antitrust laws.
On a voice vote, the House Judiciary Committee sent the Railroad Antitrust Enforcement Act of 2009 to the floor for action.
The bill eliminates railroads’ antitrust exemption and shifts authority for review of mergers from the Surface Transportation Board, which critics contend is too cozy with the industry, to the Justice Department and Federal Trade Commission.
It also allows state attorneys general and private parties to sue for triple damages and to stop anticompetitive activities.
NRECA CEO Glenn English, chairman of Consumers United for Rail Equity, hailed the vote, saying an unchecked freight rail monopoly has driven up prices for co-ops and other shippers who lack access to competitive rail service.
“This kind of reform has been a long time coming. It will undoubtedly benefit American consumers, farmers and manufacturers,” he said. “This loophole has been a detriment to our economy and job market for far too long and now’s the time to make things right.”
A date for a floor vote has not been set. In the Senate, proponents of railroad reform are awaiting a bill that Senate Commerce Committee Chairman John D. Rockefeller IV, D-W. Va., has promised to unveil soon.
Rep. Tammy Baldwin, D-Wis., who sponsored the House bill, said after the committee vote that the measure places the rail industry under the same antitrust laws that apply to utilities and other industries.
Currently, four Class 1 railroads carry about 90 percent of the nation’s freight and often charge excessive rates where they enjoy a shipping monopoly, she said.
“This legislation is long overdue and absolutely necessary to begin to end the railroad monopolies that are driving consumer prices up and service down,” Baldwin said. “This virtual monopoly by the freight rail industry is unnecessary, unfair, and unacceptable. It’s time for Congress to apply our antitrust laws more equitably.”