[Congressional Record Volume 145, Number 163 (Wednesday, November 17, 1999)]
[Extensions of Remarks]
[Page E2427]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            INTRODUCTION OF STB MODERNIZATION BILL STATEMENT

                                 ______
                                 

                          HON. JERROLD NADLER

                              of new york

                    in the house of representatives

                       Tuesday, November 16, 1999

  Mr. NADLER. Mr. Speaker, today, I am introducing the Surface 
Transportation Board (STB) Modernization Act. Our rail freight system 
is an integral part of the distribution of goods across the Nation. The 
safe and efficient movement of rail freight in this country is an 
important, though at times unnoticed, part of the economy and the lives 
of everyday citizens. We take for granted that this system is working 
properly until goods do not arrive on supermarket shelves or the cost 
of heating our homes skyrockets due to costs caused by shipping delays.
  The trend of carriers to consolidate has left the Nation with only 
six major railroads. As a result of these mergers, new problems and 
issues have been created that were not addressed in the Interstate 
Commerce Commission Termination Act, the law that created the STB. This 
bill attempts to address those issues and would improve the efficiency 
of the Nation's rail system and address many of the concerns of labor, 
shippers, and communities.
  First, this bill would provide necessary protection to rail workers 
by ending ``cram down.'' Cram down occurs when merging railroads 
override collective bargaining agreements with workers and ``cram 
down'' new terms on the workers to realize merger benefits. The STB has 
approved this practice for far too long. Under this bill, a collective 
bargaining agreement could be modified only if both the rail carriers 
and affected laborers agree. In addition, the existing minimum level of 
labor protection would be codified.
  Second, this bill would improve the efficiency of shipping in several 
ways. It would bring an end to ``bottlenecks'' along rail lines. In 
bottlenecks, the STB allowed one rail carrier to prevent or discourage 
a shipper from interchanging with another rail carrier for more direct 
service by refusing to quote a rate or quoting an excessive rate along 
its portion of a line. In addition, this bill would broaden the STB's 
authority to transfer or direct the operations of a line and ease the 
ability of a carrier to gain access to terminal facilities; and narrow 
the exemption from antitrust laws that railroads currently enjoy.
  Third, the bill contains several miscellaneous provisions that would 
address problems faced by rail carriers, shippers, and the public. The 
bill would reduce fees for bringing disputes before the STB, provide 
tax relief for carriers that invest in their rail yards, and codify the 
STB's decision to eliminate the requirement that shippers show an 
absence of product and geographic competition in rate cases.
  Fourth, this bill would create a Federal Railroad Advisory Committee 
to study, among other things, the efficiency, maintenance, operation, 
and physical condition of the Nation's rail system. After 2 years, the 
Committee would make recommendations for improving the system to 
Congress and the President.
  Overall, the STB Reauthorization Act of 1999 would guarantee that our 
Nation's rail system will be competitive, efficient, and safe as we 
enter the 21st century.

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