House Panel Passes Bill Stripping Rail Antitrust Exemptions
By Brent Kendall, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- The House Judiciary Committee on Wednesday passed
legislation to strip longstanding antitrust exemptions for freight railroad
companies, sending the bill to the full House for consideration.
Lawmakers on both sides of the aisle, however, suggested that the bill needs
additional work and will see some changes before it appears on the House floor.
The bill would repeal legal provisions that make certain railroad transactions
exempt from review by antitrust regulators. And importantly, the legislation
would provide that in legal disputes, federal trial judges would not have to
defer to the jurisdiction of the Surface Transportation Board, whose oversight
has been criticized as too friendly to the railroads.
The legislation also would give private litigants the ability to seek court
injunctions to block conduct by the rail companies.
The House panel approved the legislation on a voice vote.
Supporters of the bill say antitrust exemptions for railroads contribute to
higher shipping prices that translate into higher prices for consumers.
The railroads say the legislation would discourage private investment in the
industry and harm the public.
The prospects for any congressional passage of a rail antitrust bill this year
are cloudy, in part because railroad legislation is in limbo in the Senate.
The Senate canceled a vote on a similar rail bill in June after Sen. John
Rockefeller, D-W.Va., a key player on the issue, withdrew his support for the
legislation.
Rockefeller instead plans to offer broader legislation that would overhaul the
Surface Transportation Board, which regulates rail competition. The senator has
agreed to include some, but not all, provisions of the antitrust bill.
Rockefeller has not yet introduced his legislation.
Four rail companies dominate the rail shipping business: Norfolk Southern
Corp. (NSC), Burlington Northern Santa Fe Corp. (BNI), CSX Corp. (CSX) and Union
Pacific (UNP).
-By Brent Kendall, Dow Jones Newswires; 202-862-9222; brent.kendall@
dowjones.com
(END) Dow Jones Newswires
09-16-091613ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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