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Legislation and Regulation Keyed to Manning, 5th Ed.
United States v. Florida East Coast Railway Co.
Citation:
410 U.S. 224 (1973)Facts
For years, the nation experienced chronic freight car shortages. In 1966, Congress amended the Interstate Commerce Act to grant the ICC authority to prescribe incentive per diem charges for the use of freight cars to alleviate these shortages. The ICC initiated a rulemaking procedure in 1967, directing railroads to compile and report detailed information about freight car supply and demand. After analyzing this data, the ICC issued an interim report in December 1969 announcing its tentative decision to adopt incentive per diem charges on standard boxcars. The Commission invited written statements of position and objections within 60 days, stating that parties requesting oral hearings should specify the need and evidence to be presented. Both defendant railroads filed objections and requested oral hearings. In April 1970, the ICC issued its final order without holding oral hearings, establishing incentive per diem rates that required railroads to pay additional charges when using boxcars owned by other railroads. The rates varied based on the cost and age of the boxcars and were designed to encourage prompt return of existing cars and acquisition of new ones.
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