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pursuant to an application filed on or before the date on which this paragraph takes effect, specifically authorizing the holder thereof to engage as a contract carrier by water in the transportation of commodities in bulk over any route or routes or between any ports, may without making application under this section engage, to the same extent and subject to the same terms, conditions, and limita. tions, as a contract carrier by water in the transportation of such commodities as specified in such permit.

*13) Subject to the provisions of section 310, if any such carrier or a predecessor in interest was in bona fide operation as a contract carrier by water in the transportation of bulk commodities pursuant to the exemption of former section 303 (b) on January 1, 1955, over the route or routes or between the ports with respect to which application is made and has so operated since that time (or, if engaged in furnishing seasonal service only, was in bona fide operation during the seasonal period, prior to or including such date, for operations of the character in question) except, in either event, as to interruptions of service over which the applicant or its predecessor in interest had no control, the Commission shall issue such permit, without further proceedings, if application for such permit is made to the Commission as provided in subsection (g) of this section and prior to the expiration of one hundred and eighty days after this section takes effect. Pending the determination of any such application, the entinnance of such operation shall be lawful. Any person, not included within the foregoing provision, who is engaged in such transportation of bulk commodities as a contract carrier by water when this subparagraph takes effect may continue such operation for a period of one hundred and eighty days thereafter without a permit, and, if application for such permit is made to the Commission within such period, the continuance of such operation shall be lawful pending the determination of such application.”

SEC. 19. Subsection (c) of section 402 of the Interstate Commerce Act, as amended, is amended (1) by inserting after “(c)" the following: “(1) Except as provided in paragraph (2) of this subsection", and (2) by adding a new paragraph at the end thereof reading as follows:

*(2) After hearing in an investigation institute on its own motion or upon complaint the Commission, by order, shall make the exemption provided for by paragraph (1) inapplicable to any person if it finds that the activities of such jesson are not being conducted solely for the purpose, and within the limitations, Specified in such paragraph, or that making such exemption inapplicable to such person is necessary to carry out the purposes of this part and the national transportation policy declared in this Act. In the administration of this paragraph the Commission shall consider, among other things which in its opinion are bertinent and relevant, the facts and circumstances surrounding the organization and establishment of such activities; the scope of the activities, geographically and as to commodities handled and persons served; the basis of charges, if any, for the service or services provided ; and the extent such activities are in comDetition with the services of freight forwarders subject to this part."

SEC. 20. Subsection (a) of section 404 of the Interstate Commerce Act, as amended, is amended to read as follows:

(a) It shall be the duty of every freight forwarder to provide and furnish, upon reasonable request therefor, the service subject to this part covered by its permit issued under this part, and to establish, observe, and enforce rates, charges, and classifications, regulations, and practices relating thereto which Tesult in charges not less than just and reasonable minimum charges nor more than just and reasonable maximum charges and just and reasonable regulations and practices relating thereto and to the issuance, form, and substance of receipts and bills of lading, the manner and method of presenting, marking, packing, and delivering property for transportation in service subject to this part, the fatilities for such transportation, and all other matters relating to or connected with such transportation and every rate, charge, classification, regulation, or practice resulting in less than just and reasonable minimum charges or more than just and reasonable maximum charges for the service, services, or part thereof covered thereby is prohibited and declared to be unlawful.”

SEL. 21. (a) Subsection (b) of section 406 of the Interstate Commerce Act, as arbeaded, is amended to read as follows:

(b) Whenever, after hearing, upon complaint or in an investigation upon its own initiative, the Commission shall be of opinion that any rate or charge d-madded, cbarged or collected for service subject to this part, or any classificatina, regulation, or practice relating thereto is or will be in contravention of any provision of this part, it shall determine and prescribe the lawful reasonable minimum or maximum rate or charge thereafter to be observed or the lawful relationship, classification, regulation, or practice thereafter to be made effective."

(b) Subsection (c) of section 406 of the Interstate Commerce Act, as amended, is amended by striking out the words "justness or reasonablness" in the first clause thereof, and inserting in lieu thereof the word “lawfulness."

(c) Subsection (d) of section 406 of the Interstate Commerce Act, as amended, is hereby repealed.

(d) Subsection (e) of section 406 of the Interstate Commerce Act, as amended, is amended to read as follows:

“(e) Wherever there shall be filed with the Commission, under this part, any tariff stating a new rate, charge, classification, regulation, or practice, the Commission may upon complaint or upon its own initiative at once, and, if it so orders, without answer or other formal pleading, but upon reasonable notice, enter upon an investigation concerning the lawfulness of such rate, charge, classification, regulation, or practice.

"Pending such hearing and the decision thereon, the Commission may from time to time suspend the operation of such tariff and defer the use of such rate, charge, classification, regulation, or practice, for a period not longer than three months beyond the time when it would otherwise go into effect, but only if it determines on the basis of factual information by sworn complaint, affidavit, or other evidence, furnished by the complainant, or a result of its own investigation, (1) that the rate, charge, classification, regulation, or practice would probably be unlawful, and (2) that making such rate, fare, charge, classification, regulation, or practice effective would result in injury to the complainant, and (3) that remedies available to the complainant would, in the absence of suspension, be inadequate; and the Commission shall file with such tariff and deliver to the freight forwarder affected thereby a statement in writing of its reasons for the suspension. After hearing, whether completed before or after the rate, charge, classification, regulation, or practice goes into effect, the Commission may make such order with reference thereto as would be proper in a proceeding instituted after such rate, charge, classification, regulation, or practice had become effective. If the proceeding shall not have been concluded and an order made within the period of suspension, the proposed rate, charge, classification, regulation, or practice shall go into effect at the end of such period, which period shall not be extended by agreement or otherwise: Provided, however, That subject to section 405 (b), this subsection shall not apply to any initial tariff filed prior to the expiration of ninety days after the date of enactment of this part.

At any hearing involving a change in a rate, charge, or a classification, or in a rule, regulation, or practice, the burden of proof shall be upon the freight forwarder or carrier filing the tariff to show that the proposed changed rate, charge, classifcation, rule, regulation, or practice is lawful, unless the complainant is also a freight forwarder or carrier."

(e) Subsection (f) of section 406 of the Interstate Commerce Act, as amended, is amended (1) by inserting in the first sentence after “made or imposed by authority of any State,” the words "or any State service requirement (including any constitutional, statutory, administrative, or judicial requirement to provide, operate, or maintain freight forwarder service or facilities, or the refusal or omission of any State agency or tribunal having jurisdiction upon application, request, or notice duly presented thereto, to authorize or permit discontinuance or curtailment of such service or facilities within one hundred and eighty days after the presentation of such application)," and (2) by amending the last two sentences thereof to read as follows: "Whenever in any such investigation the Commission, after full hearing, finds that any such rate, 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 band and interstate commerce on the other hand, or any undue, unreasonable or unjust discrimination against interstate commerce, or that any such service requirement causes or will cause a net loss in revenue to the freight forwarder or forwarders involved, or otherwise unduly burdens or will burden interstate commerce, all of which are hereby forbidden and declared to be unlawful, it shall determine and prescribe such just and reasonable minimum or maximum rate, fare, or charge, thereafter to be charged, and the classification, regulation, practice, or service requirement thereafter to be observed : Provided, That in any such investigation involving a State service requirement the Commission shall not issue such order prescribing or requiring curtailment or discontinuance of

service covered thereby unless it finds that there is or will be available to the public reasonably adequate service in lieu thereof by other carriers or modes of transport (including private carriage) in the event of discontinuance or curtailment of the particular service or facility involved. Such order or orders shall be observed while in effect by the freight forwarders parties to such proceeding affected thereby, the law of any State or the decision or order of any State authority to the contrary notwithstanding."

SEC. 22. Section 418 of the Interstate Commerce Act, as amended, is amended (1) by inserting the word "or" before "common carriers by motor vehicle exempted under the provisions of section 204 (a) (4a) of this Act.", and (2) by striking therefrom "common carriers by water engaged in transportation exempted under the provisions of section 303 (b) of this Act."

SEC. 23. (a) Subsection (a) of section 321 of the Transportation Act of 1940 119 U. S. C. 65) is amended (1) by amending the phrase "Sections 1 (7) and 2.1" to read “Sections 1 (7) and 15a (5)”, and (2) by striking out the word *commercial" and inserting "tariff” in lieu thereof.

(b) Nothing in this section shall be construed to affect the validity of any free or reduced rates, fares or charges for transportation service rendered prior to the effective date hereof.

Sec. 24. (a) Any person holding a valid permit to operate as a contract carrier by motor vehicle as defined by former section 203 (a) (15) of the Interstate Commerce Act, as amended, or as a contract carrier by water as defined by formier section 302 (e) of such Act, when this section takes effect shall elect to operate hereafter (1) as a contract carrier by motor vehicle or by water on the one hand, or (2) as a common carrier by motor vehicle or by water on the other hand, and shall advise the Interstate Commerce Commission in writing, under such regulations as the Commission may prescribe, of its election within one hundred and eighty days after the effective date of this section. The Commiskioo shall investigate and determine, after reasonable opportunity for hearing, the character of operations authorized by each such periit, and shall, after giving de consideration to the statement of election filed by each such carrier as nquired by this section, and without further proceedings, issue to the carrier a confirmed or amended permit, or a certificate of public convenience and necessity, whichever is appropriate, authorizing the continuance of such operations in conformity with the amended definitions hereof. Pending determination of rh inrestigation, the continuance of such operation as previously authorized shall be lawful.

(b) Any person who, when this section takes effect, is engaging in transportation as a private carrier of property by motor vehicle which was exempt under the provisions of section 203 (a) 17 of the Interstate Commerce Act, as amended, prior to its amendment by this Act, but which becomes subject to the provisions of part II because of such amendment, may continue to engage in such transportation for a period of one hundred and eighty days without a certificate or permit covering such transportation. If application for a certificate or permit forering such transportation is made to the Commission within such period, the Commission shall, after investigation and opportunity for hearing but without further proceedings, issue to such person a certificate or permit, whichever is appropriate, authorizing transportation which was previously exempted. Pending the issuance of a certificate or permit, the continuance of such transportation as previously authorized shall be lawful.

SEC. 25. Outstanding effective orders prescribing minimum, maximum, or maximam-and-minimum rates, fares, or charges, or issued under section 4 of the Interstate Commerce Act, as amended, prior to its amendment by this Act, shall Lot have any force and effect with respect to rates, fares, or charges filed one bundred and eighty days after the enactment hereof.

SEX. 26. Sections 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 20, 21, and 23 shall take pffect one hundred and eighty days after the enactment hereof. All other portions hereof shall take effect upon enactment. VOTE.—II. R. 6142 is not printed because identical to H. R. 6141.)

(H. R. 525, 84th Cong., 1st sess.) A BILI. To amend section 22 of the Interstate Commerce Act, as amended, and for other

purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 22 of the Interstate Commerce Art, as amended (U. S. C., 1946 edition, title 49, sec. 22), is hereby further Amended by striking from the first clause of the first sentence thereof the words "for the United States, State or municipal governments, or" and the words "or the transportation of persons for the United States Government free or at reduced rates,".

(H. R. 6208, 84th Cong., 1st sess.) A BILL To amend paragraph (1) of section 4 of the Interstate Commerce Act, as amended

Be it enacted by the Senate and House of Representatives, of the United States of America in Congress assembled, That paragraph (1) of section 4 of the Interstate Commerce Act, as amended (49 U. S. C. 4 (1)), is amended to read as follows:

(1) It shall be unlawful for any common carrier subject to this part or part III 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 rates subject to the provisions of this part or part III, but this shall not be construed as authorizing any common carrier within the terms of this part or part III to charge or receive as great compensation for a shorter as for a longer distance: Provided, That upon application to the Commission and after investigation, such carrier, in special cases, may 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 carriers may be relieved from the operation of the foregoing provisions of this section, but in exercising the authority conferred upon it in this proviso, no such authorization shall be granted on account of merely potential water competition not actually in existence: And provided further, That any such carrier or carriers operating over a circuitous line or route may, subject only to the standards of lawfulness set forth in other provisions of this part or part III and without further authorization, meet the charges of such carrier or carriers operating over a more direct line or route, to or from the competitive points: And provided further, That tariffs proposing rates subject to the provisions of this paragraph requiring Commission authorization may be filed when application is made to the Commission under the provisions hereof, and in the event such application is approved, the Commission shall permit such tariffs to become effective upon one day's notice."

(H. R. 9177, 84th Cong., 2d sess. ) A BILL To amend section 405 (a), part IV, of the Interstate Commerce Act Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 405 (a), part IV of the Interstate Commerce Act is hereby amended by striking out the period after the word "consignee”, substituting a colon therefor, and adding: "Provided, That nothing in this part shall be construed as requiring any freight forwarder to publish tariffs stating rates or charges to or from points or places at which the freight forwarder has no agent."

(H. R. 9548, 84th Cong., 2d sess.)

A BILL To amend section 409 of the Interstate Commerce Act, as amended, to authorize

contracts between freight forwarders and railroads for the movement of trailers on flatcars

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (a) of section 409 of the Interstate Commerce Act, as amended, is amended by inserting “(1)” after “(a)” and by adding at the end of such subsection the following new paragraph :

“(2) Nothing in this Act shall be construed to prevent freight forwarders subject to this part from entering into or operating under contracts with common carriers by railroad subject to Part I of this Act, governing the utilization by such freight forwarders of the services and instrumentalities of such common carriers by railroad and the compensation to be paid therefor, for line-haul movement of freight loaded in or on trailers or other containers and transported on railroad cars suitable for such use: Provided, That in the case of such contracts it shall be the duty of the parties thereto to establish just, reasonable, and equitable terms, conditions, and compensation which shall not unduly prefer or prejudice any of the participants thereto and shall be consistent wtih the national transportation policy declared in this Act."

Sec. 2. The heading of such section 409 is amended by striking out “BY MOTOR VEHICLE" and inserting in lieu thereof “BY RAILROAD OR MOTOR VEHICLE.”

(H. R. 9771, 84th Cong., 2d sess.)

A BILL To amend section 411 of the Interstate Commerce Act, as amended, with respect

to relationships between freight forwarders and other common carriers Be it enacted by the Senate and House of Representatives of the United states of America in Congress assembled, That subsection (a) of section 411 of the Interstate Commerce Act, as amended, is amended to read as follows:

"SEC. 411. (a) (1) Notwithstanding any other provision of this Act, it shall be lawful, with the approval and authorization of the Commission, as provided D paragraph (2) of this subsection, for a freight forwarder subject to this part to acquire control of one or more common carriers subject to part I, II, or III of this Act, through ownership of stock or otherwise; except that this subsection shall pot alter, limit, or affect the right of any carrier subject to part I, II, or III of this Act to acquire control of any other carrier subject to part I, II, or III of this Act in accordance with the provisions of section 5 of part I of this act.

*(2) Whenever a transaction made lawful by paragraph (1) of this subsection is proposed, the freight forwarder seeking authority therefor shall present an application to the Commission, and thereupon the Commission shall give due Dotice thereof and afford reasonable opportunity for interested parties to be beard, setting the application for public hearing if deemed by the Commission Lecessary in order to determine whether the findings, specified in paragraph (3) of this subsection may properly be made. If the Commission finds that, subject to xoeb terms and conditions and such modifications as it shall find to be just and resupable, the proposed transaction is within the scope of paragraph (1) of this subsection and will be consistent with the public interest, it shall enter an order approving and authorizing such transaction, upon the terms and conditions and with the modifications so found to be just and reasonable.

"(3) In passing upon any proposed transaction under the provisions of this station, the Commission shall give weight to the following considerations, among others: (a) The effect of the proposed transaction upon adequate transportation Sorice to the public, and (2) where appropriate, the interest of the carrier employees affected; and the Commission may require, as a prerequisite to its approval of any proposed transaction under the provisions of this section, a fair and equitable arrangement to protect the interests of the employees affected."

(H. R. 9772, 84th Cong., 2d sess.)

A BILL To amend section 410 of the Interstate Commerce Act, as amended, to change the

requirements for obtaining a freight forwarder permit

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 410 of the Interstate Commerce Act, as amended, is amended by eliminating therefrom subsection (d) in its entirety, and by redesignating subsections (e), (f), (g), (h), and (i) as substions (d), (e), (f), (g), and (h), respectively. (Departmental reports on the above bills are as follows :)

THE SECRETARY OF COMMERCE,

Washington, D. C., October 31, 1955. . J. PERCY. PRIESTittee on Interstate and Foreign Commerce, Chairman, Committee

House of Representatives, Washington, D. C. IP AR MB. CHAIRMAN: This letter replies to your request dated May 11, 1955, for the views of this Department with respect to H. R. 6141, a bill to amend the Interstate Commerce Act, as amended so as to provide for a stronger national transportation industry, and for other purposes.

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