Page images
PDF
EPUB

the benefits the public is likely to derive from the availability of rail service outweigh any inconvenience which the opposing landowners might suffer. On balance, we conclude that the public interest would be better served by our approving the entire application.

Rail transportation policy. —Our decision here draws much of its support from three objectives of the rail transportation policy of 49 U.S.C. 10101a: (1) to reduce regulatory barriers to entry into and exit from the industry, (2) to ensure the development and continuation of a sound rail transportation system with effective competition among rail carriers and with other modes, to meet the needs of the public and the national defense, and (3) to foster sound economic conditions in transportation and to ensure effective competition and coordination between rail carriers and other modes. See 49 U.S.C. 10101a(4), (5), and (7).

In addition, as the Commission pointed out when it was before the reviewing court, this decision is also consistent with the then operative national transportation policy: to preserve the inherent advantages of each mode of transportation and to promote safe, adequate, economical, and efficient transportation. See former 49 U.S.C. 10101 (a) (1) and (2)." We conclude that a grant of authority over the remaining 9-mile segment of the line is clearly warranted under the new standards of section 10901 favoring rail carrier entry. We believe our analysis here is equally supportive of a grant of authority under the former statutory criteria as well.

This action will not significantly affect the quality of the human environment or energy consumption.

It is ordered:

(1) The motion filed by Concord Township and the petition filed by the Nicholas Newlin Foundation to vacate the Commission's reopening order of August 26, 1980, are denied.

(2) OCTR's application for authority under 49 U.S.C. 10901 to operate a 41.7-mile line of rail between Colora, MD and Wawa, PA, is granted. (3) The decision of division 2 (served May 22, 1979) in this proceeding, as supplemented here, is adopted as the decision of the Commission. (4) This decision shall be effective 30 days from the date it is served. (5) Within 15 days after operations are begun pursuant to the authority granted here, OCTR shall notify the Commission in writing the date. operations began.

By the Commission, Chairman Taylor, Vice Chairman Clapp, Commissioners Gresham and Gilliam.

(5).

These objectives are incorporated in the new rail transportation policy in 49 U.S.C. 10101a(4) and

ABANDONMENTS

A

INDEX DIGEST

Acquisition of abandoned lines See
ACQUISITION OF LINES

Alternate transportation services, con-
sideration in determining public
need 119, 676, 701, 703, 736

Amendment reducing scope of application,
proper 779

Appeals, expedited procedures inapplicable

to transactions including acquisition and
exemption proposals 966

Assets of line after, Commission's jurisdic-
tion of distribution of 678

Avoidable costs, when calculated in accord-
ance with regulations held to be, unless
rebutted 699

Balancing test for 116, 159, 774
Burden of going forward with evidence,
applicant's compliance with regulations
meets 103

Burden of going forward with the evidence,
construed 102, 107

Burden of proof 101, 107

Burden on applicant and on interstate com-
merce, construed 97
Chicago, R. I. & P.

Continuation of service, measures recom-
mended 152, 160, 172

Decline of does not mean all its lines ripe
for 342

Entire system, recommended to reorgani-
zation court 150, 152, 172

Jurisdiction transferred to bankruptcy
court 151
Conditions

Acquisition of trackage rights or of line
cannot be required 711

Dismantling rail, track, and ties, Commis-
sion's power to regulate 678

Offering to sell line to another carrier, con-
dition found satisfied 711
Public use See below

Reimbursement of shipper's investment
in line 677

Required by public convenience and ne-
cessity, Commission not limited to impos-
ing 678

Sale of portions of line to subsidiary 108
Sell line operated under trackage rights to
another carrier 118, 120

Consolidation of applications, physical and
temporal proximity 115

Costs, every out-of-pocket of operation,
must be considered 96
Criteria for 116, 159

CSX merger, in conjunction with, operating
benefits of 557

De facto

Commission has no jurisdiction over 971
Despite, only Commission jurisdiction to
grant abandonment 972

Noncarrier application granted, carrier has
engaged in, merely interested retaining
right-of-way 971

Downgrading

Deferred maintenance due to poor finan-
cial health is not 730

Deferred maintenance not, when line
unprofitable 109, 119

100-ton car operations, damage due to,
causes inevitable deterioration, not found
deliberate 697, 702

Employment, loss of, multiplier effect 158
Energy impact, small in view of motor car-
rier short-haul efficiency 780

Energy questions not determinative 109
Entire rail system, factors considered 160
Environmental questions not determina-
tive 109

Eviction of shippers, noted 704
Exemptions See EXEMPTIONS

Fee, waived because of financial condition
of applicant 151

Final System Plan, 3R Act, under 808
Financial assistance See Subsidies, below;

and ACQUISITION OF LINES

Fully abandoned line

Cessation of service after, beyond Com-
mission's jurisdiction 712

Defined 135

ABANDONMENTS-Continued

Fully abandoned line-Continued

No longer rail line; transfer not subject to
Commission jurisdiction 135
Proceeding cannot be reopened thereafter,
to require restoration of service, without
carrier's application under §10901 711
Future traffic trends inferred to be con-
tinuation of past 102

Harm to shippers does not warrant continu-
ing losing operation 736

Investment of shipper in spur line, reimbur-
sement of 677

Joint costs, effect of avoidable cost concept
on 96

Labor agreements, private, cannot affect
application of cost regulations to 95
Labor costs are avoidable 95, 117

Labor costs, effect of tabulated local
rule 95

Labor protection See EMPLOYEES

Landslide closed line, little used, abandon-
ment granted 854

Leases of shippers terminated, noted 704
Line, not type of traffic, must burden inter-
state commerce 694

Low-rated commodity carried, rates unable
to cover costs 775

Maintenance costs, failure to allocate to

overhead operation 699

Maintenance costs, profits on line insuffi-
cient to justify 701

Maintenance, minimal, in view of losses
and minimal traffic, reasonable 110
Marginally profitable lines requiring sub-
stantial rehabilitation, granted 737
Motor carrier competition, rates kept low to
meet, make line unprofitable 775
Negative impact on shippers vs. potential
for increased traffic 735

Noncarrier applies for, carrier opposes, per-
missible 971

Nonprotested, reversed only for procedural
error or fraud 988
Notice

Certificate not issued until notice pub-
lished 966

Constructive, by newspaper and posting,
construed 989

Significant users See below

When related to acquisition or consolida-
tion proposals, published concurrently
with final decision 965

Off-branch revenues and costs

Light-density lines, both on-branch and,
are considered 775

On-branch and, separation rejected 777
Single- vs. multiple-car, unit-train move-
ments 699

Uncertainty of traffic carried, consid-
ered 776

Variable cost, not allocation method,
used 776

Operating losses shown, raises inference of
absence of public need to be rebutted by
protestants 107

Operators of lines approved for abandon-
ment but acquired by States

Exempted from filing applications
for 136

Modified certificate of public convenience
and necessity for 138
Opportunity costs

Book vs. replacement value 667
Consideration of 107, 667, 692, 732, 777
Computation of 670, 732

Defined 671

Investment of liquidation assets, return
on 673, 733

Net liquidation value 672, 732

Public convenience and necessity balanc-
ing test, part played in 676

Shipper's contribution to, consid-
ered 678

Taxes, consideration of 674, 733
Overall financial strength of applicant
should not bar 119

Overhead costs, effect on maintenance
costs of failure to allocate 699
Permissive authorization, but when carrier
has de facto abandoned, will allow State
condemnation proceeding 972
Private vs. public need for service 676
Procedures for, technical compliance not
required when application filed on short
notice on order of reorganization
court 153

Public convenience and necessity test
broadly interpreted 678

Public use condition, §10906

Postponement of certificate, does not
result in 973

Prevents disposal of property, does not
force sale 973

Section 10906 does not authorize sales for
public use other than continued rail serv-
ice 976

Pulpwood operations, impact on, found not
to outweigh burden on carrier 778
Purchases See ACQUISITION OF LINES
Railroad lines

Illinois C. G. R., Ballard and McCracken
Counties, KY 729

Illinois Central Gulf R., between
Cherokee, IA, and Sioux Falls, SD,
granted 93

Illinois C. G. R., Bloomer Line, Herscher
to Barnes, IL 690

Milwaukee R., western transcontinental
lines, recommendation to reorganization
court that abandonment be allowed 23
Norfolk R. W., between New Castle and
Rushville, IN, granted 115

Rock Island R. See Chicago, R. I. & P.,
above

Southern Pac. Transp. Co., between
Bonita Junction and Seagoville, TX,
granted 105

Rehabilitation, cost of

Evidence based on less thorough engi-
neering study is less persuasive 698
Future traffic insufficient to justify 118,
731

Immediate cost to be apportioned 731
Inflation, consideration of 118
Substantial, marginally profitable line, not
justified 737

Relocation of lines 850

Return on investment, failure to generate
full 116

Return on investment, not avoidable
loss 106

Revenues generated by shipments manu-
factured from commodity originating on
line, not considered

700

Revenues, outbound transit move-
ments 694, 699

Rural and community development, impact
on 116

[blocks in formation]

Shipper not located on line to be aban-
doned, is not 989

Shipper investment in line, reimbursement
of 677

Spur line, reimbursement of shipper's in-
vestment in 677

State condemnation allowed when aban-
donment granted on application of non-
carriers 972

Subsidiary jointly owned by carrier in reor-
ganization is not bankrupt, can only be
abandoned under §10903 171
Subsidies for continuation of service
Administrative costs construed 874
Avoidable costs construed 869
Calculation, methodology not specific
costs established for 869

Commission acts as quasi-judicial condem-
nation tribunal 977

Differences between parties must be
specified 876

Investment base, components of 871
Issue not considered in approving aban-
donment 778

Land, valuation of 872
Maintenance-of-way, actual must be
paid 871

Negotiations, good faith required 876
Net liquidation value, construed 872
Offer adequate, even if offeror will seek
contributions from shippers 868
Off-branch costs, revenues, effects
of 871

Off-branch transit load balances 871
Offeror must assume full responsibility for
payment of entire subsidy 868
Parties bound by Commission determina-
tion 868

Property value based on highest and best
use for other than rail purposes 874
Rate of return, current cost of capital 874
Rehabilitation costs construed 875

« PreviousContinue »