"Sen. Kohl aims antitrust enforcement act at rail industry
Another bill seeking to remove railroads’ antitrust exemptions and offer relief to captive shippers has entered the U.S. Senate.
Last week, Sen. Herb Kohl (D-Wis.) introduced the Railroad Antitrust Enforcement Act of 2006 (S. 3612), which proposes to repeal antitrust exemptions that enable freight railroads to “abuse their dominant market power and raise rates for those who rely on them to ship dozens of vital commodities, including coal and agricultural products,” said Kohl — who serves as senior democrat of the Senate Judiciary Committee’s Antitrust, Competition Policy and Consumer Rights panel — in a prepared statement.
Currently, railroad mergers and acquisitions are exempt from antitrust law and reviewed by the Surface Transportation Board. In addition, railroads engaging in collective ratemaking are exempt from antitrust review. The bill would eliminate those exemptions by allowing the federal government, state attorneys general and private parties to file suit to enjoin anti-competitive mergers and acquisitions. S. 3612 also would restore the power of the U.S. Justice Department’s Antitrust Division and Federal Trade Commission to review railroad mergers. Co-sponsored by Sen. Russ Feingold (D-Wis.), the bill was referred to the Committee on the Judiciary.
Facing continually rising rail rates, captive shippers have been the “victim of monopolistic practices and price gouging by the single railroad that serves them, price increases which they are forced to pass along into the price of their products and, ultimately, to consumers,” said Kohl. For example, Dairyland Power Cooperative’s rates increased 93 percent Jan. 1 after a three-year rail contract expired. Now, the LaCrosse, Wis.-based cooperative will spend about $75 million to ship $30 million worth of coal, K
"Sen. Kohl aims antitrust enforcement act at rail industry
Another bill seeking to remove railroads’ antitrust exemptions and offer relief to captive shippers has entered the U.S. Senate.
Last week, Sen. Herb Kohl (D-Wis.) introduced the Railroad Antitrust Enforcement Act of 2006 (S. 3612), which proposes to repeal antitrust exemptions that enable freight railroads to “abuse their dominant market power and raise rates for those who rely on them to ship dozens of vital commodities, including coal and agricultural products,” said Kohl — who serves as senior democrat of the Senate Judiciary Committee’s Antitrust, Competition Policy and Consumer Rights panel — in a prepared statement.
Currently, railroad mergers and acquisitions are exempt from antitrust law and reviewed by the Surface Transportation Board. In addition, railroads engaging in collective ratemaking are exempt from antitrust review. The bill would eliminate those exemptions by allowing the federal government, state attorneys general and private parties to file suit to enjoin anti-competitive mergers and acquisitions. S. 3612 also would restore the power of the U.S. Justice Department’s Antitrust Division and Federal Trade Commission to review railroad mergers. Co-sponsored by Sen. Russ Feingold (D-Wis.), the bill was referred to the Committee on the Judiciary.
Facing continually rising rail rates, captive shippers have been the “victim of monopolistic practices and price gouging by the single railroad that serves them, price increases which they are forced to pass along into the price of their products and, ultimately, to consumers,” said Kohl. For example, Dairyland Power Cooperative’s rates increased 93 percent Jan. 1 after a three-year rail contract expired. Now, the LaCrosse, Wis.-based cooperat
What’s interesting is that many captive shippers are themselves monopolies (or at least 900 pound gorillas in their markets) like chemical companies and big energy companies.
Isn’t it interesting that this forum’s defenders of the comman man, Mr. Sol and Futuremodal Dave, take the side of ExxonMobile in this “captive” shipper debate. Well, politics makes strange bedfellows.
Well, which is it? “Chemical shippers” or “ExxonMobile”?
I did cite a lengthy newspaper article on that thread which “also” contained the following quote:
"Chemical manufacturing plants and farmers served by only one railroad — called captive shippers — complain that shipping costs are making it more difficult for them to stay in business.
"Since the 1980s, when Congress deregulated the railroad industry, the number of major railroads has shrunk from 40 to four.
“While overall rates for most shippers have gone down since then, preliminary results from a General Accountability Office report show the amount of freight traveling under higher rates charged to captive shippers has gone up 50 percent. In 1985, 4 percent of the nation’s railroad freight was shipped by farmers, coal-burning power plants and others served by only one railroad.”
L arge companies always think they should be exempt from all laws and taxes .they want to be a world of their own but have thw full protection of the u. s. government
Well, which is it? “Chemical shippers” or “ExxonMobile”?
I did cite a lengthy newspaper article on that thread which “also” contained the following quote:
"Chemical manufacturing plants and farmers served by only one railroad — called captive shippers — complain that shipping costs are making it more difficult for them to stay in business.
"Since the 1980s, when Congress deregulated the railroad industry, the number of major railroads has shrunk from 40 to four.
"While overall rates for most shippers have gone down since then, preliminary results from a General Accountability Office report show the amount of freight traveling under higher rates charged to captive shippers has gone up 50 percent. In 1985, 4 percent of the nation’s railroad freight was shipped by farmers, coal-burning power plants and others served by only one ra
Well, which is it? “Chemical shippers” or “ExxonMobile”?
I did cite a lengthy newspaper article on that thread which “also” contained the following quote:
"Chemical manufacturing plants and farmers served by only one railroad — called captive shippers — complain that shipping costs are making it more difficult for them to stay in business.
"Since the 1980s, when Congress deregulated the railroad industry, the number of major railroads has shrunk from 40 to four.
"While overall rates for most shippers have gone down since then, preliminary results from a General Accountability Office report show the amount of freight traveling under higher rates charged to captive shippers has gone up 50 percent. In 1985, 4 percent of the nation’s railroad freight was shipped by farme