Brief of the Council on Wage and Price Stability on the Interrelationship of the Special RateProvisions of the 4-R Act and Railroad General Rate Proceedings(Before the Interstate Commerce Commission)

by Barry Bosworth on December 20, 1977
by Barry Bosworth and Roy A. Nierenberg

The Interstate Commerce Commission (Commission) in its Order served November 10 in this ~ Parte general rate proceeding requested parties to submit separate briefs on the question of the interrelationship of the special rate provisions of The Railroad Revitalization and Regulatory Reform Act of 1976 (4-R Act) and railroad general increase proceedings. A brief by the Railroad Respondents was served on November 30, 1977. The Railroad Respondents requested that the Commission make the followin9 finding in this proceeding: The intent of Congress that the railroads be permitted greater rate making flexibility and initiative by provisions in Sections 202 and 206 of the 4R Act would be frustrated if we were to take any action in general rate increase proceedings which would offset benefits obtained by the carriers through utilization of the special rate provisions.
(Brief at 39) The Railroad Respondents argue further that neither the improved earnings or increased productivity resulting from actions under special rate provisions should be considered as an offset to general rate increases (Brief at 37).

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