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extending credit in connection with rates and charges on freight or express shipments transported for the United States, for any department, bureau, or agency thereof, or for any State or Territory or political subdivision thereof or for the District of Columbia : Provided further, That the provisions of this paragraph with respect to express companies and express shipments shall not become applicable until six months after the approval of this Act.”

SEC. 4. That at the end of section 5 (2) (a) (ii) of the Interstate Commerce Act, as amended, a new proviso be added, reading as follows: "Provided, That the provisions of this paragraph shall not extend to the acquisition or operation of spur, industrial, team, switching, or side tracks, located or to be located wholly within one State, or to the acquisition or operation of street, suburban, or interurban electric railways, except those which are operated as a part or parts of a general steam railroad system of transportation or are engaged in the general transportation of freight or interchange standard steam railroad freight equipment with steam railroads for transportation in interstate or foreign commerce to or from points on their lines: Provided further, That the provisions of this paragraph shall apply to the acquisition or operation of street, suburban, or interurban electric railways, or any portion thereof, by a standard steam railroad.”

SEC. 5. The second sentence of subparagraph (b) of paragraph 2 of section 5 of the Interstate Commerce Act, as amended, is amended to read as follows:

If the Commission shall consider it necessary in order to determine whether the findings specified below may properly be made, it shall set said application for public hearing.”

SEC. 6. That at the end of paragraph (13) of section 5 of the Interstate Commerce Act, as amended, add: "but the provisions thereof shall not extend to the acquisition or operation of street, suburban, and interurban electric railways, except those which are operated as part of general steam railroad systems of transportation or are engaged in the general transportation of freight or interchange standard steam railroad freight equipment with steam railroads for transportation in interstate or foreign commerce to or from points on their lines.”

SEC. 7. That paragraph (5) of section 16 of the Interstate Commerce Act, as amended, is amended to read as follows:

(5) It shall be the duty of every carrier or person subject to the provisions of this part to file with the Commission a designation in writing of the name and post-office address of a person upon whom or which service of notices or orders may be made under this part. In proceedings before the Commission involving the lawfulness of rates, fares, charges, classifications or practices, service of notice of the suspension of a tariff or schedule upon an attorney in fact of a carrier who has filed a said tariff or schedule in behalf of such carrier Daming the rates, fares, charges, classifications, or practices involved in such proceedings shall be deemed to be due and sufficient service upon the carrier, and service of notice of the suspension of a joint tariff or schedule upon a carrier which has filed said joint tariff or schedule to which another carrier is a party naming the rates, fares, charges, classifications, or practices involved in such proceedings shall be deemed to be due and sufficient service upon the several carriers parties thereto. Such service of notice may be made by mail to such atterney in fact or carrier at the address shown in the tariff or schedule. The provisions of this paragraph are additional to those - made in section 6 of the Act of June 18, 1910 (U. S. C., 1940 edition, title 49, section 50).”

SEC. 8 That paragraph (1) of setcion 20 of the Interstate Commerce Act, amended, is amended to read as follows:

“(1) The Commission is hereby authorized to require annual, periodical, or special reports from carriers, lessors, and associations or organizations maintained by or in the interest of any group of carriers or freight forwarders subject to the Act, to prescribe the manner and form in which such reports shall be made, and to require from such carriers, lessors, associations, or organizations specific and full, true, and correct answers to all questions upon which the Commission may deem information to be necessary, classifying such carriers, lessors, associations, or organizations as it may deem proper for any of these purposes. Such annual reports shall give an account of the affairs of the carrier, lessor, asociation, or organization in such form and detail as may be preseribed by the Commission."

Sec. 9. The second sentence of paragraph (5) of section 20 of the Interstate Commerce Act, as amended, is amended by inserting after “lessors” the following: "and of associations or organizations."

SEC. 10. That the first sentence of paragraph (6) of section 20 of the Interstate Commerce Act, as amended, is amended to read as follows:

“The Commission or any duly authorized special agent, accountant, or exam. iner thereof shall at all times have authority to inspect and copy any and all accounts, books, records, memoranda, correspondence, and other documents, of persons which directly or indirectly through rental agreements with shippers or otherwise furnish cars to or for use by any carrier by railroad or express company subject to this part or which furnish protective service against heat or cold to or on behalf of any carrier by railroad or express company subject to this part: Provided, however, That such authority shall be limited to accounts, books, records, memoranda, correspondence, or other documents which pertain or relate to the cars or protective service so furnished.”

SEC. 11. The first sentence of subparagraph (c) of paragraph (7) of section 20 of the Interstate Commerce Act is amended by striking out “or person furnishing cars or protective service” and inserting in lieu thereof “or other person,”.

SEC. 12. That subparagraph (c) of paragraph (7) of section 20 of the Interstate Commerce Act is amended to read as follows:

"(c) Any carrier or lessor, or person furnishing cars or protective service as referred to in paragraph (6) of this section, or any officer, agent, employee, or representative thereof, who shall fail to make and file an annual or other report with the Commission within the time fixed by the Commission, or to make specific and full, true, and correct answer to any question within thirty days from the time it is lawfully required by the Commission so to do, shall forfeit to the United States the sum of $100 for each and every day it shall continue to be in default with respect thereto.”

SEC. 13. Paragraph (8) of section 20 of the Interstate Commerce Act is amended to read as follows:

“(8) As used in this section the words 'keep' and 'kept shall be construed to mean made, prepared, or compiled, as well as retained ; the term 'carrier' means a common carrier subject to this part, and includes a receiver or trustee of such carrier; the term 'lessor' means a person owning a railroad, a water line, or a pipe line, leased to and operated by a common carrier subject to this part, and includes a receiver or trustee of such lessor; and the term 'association' means an association or organization maintained by or in the interest of any group of carriers or freight forwarders subject to this Act.

SEC. 14. Paragraph (1) of section 20a of the Interstate Commerce Act, as amended, is amended to read as follows:

“(1) That as used in this section the term 'carrier' means a common carrier by railroad (except a street, suburban, or interurban electric railway not operated as parts of general steam railroad systems of transportation, or which are not engaged in the general transportation of freight and do not interchange standard steam railroad freight equipment with steam railroads for transportation in interstate or foreign commerce to or from points on their lines) and to sleeping-car companies, which are subject to this part, or any corporation organized for the purpose of engaging in transportation by railroad or in the sleepingcar business subject to this part.”

SEC. 15. The first two sentences of subsection (a) of section 220 of the Interstate Commerce Act are amended to read as follows:

“(a) The Commission is hereby authorized to require annual, periodical, or special reports from all motor carriers, brokers, lessors, and associations (as defined in this section); to prescribe the manner and form in which such reports shall be made; and to require from such carriers, brokers, lessors, and associations specific and full, true, and correct answers to all questions upon which the Commission may deem information to be necessary. Such annual reports shall give an account of the affairs of the carrier, broker, lessor, or association in such form and detail as may be prescribed by the Commission.

SEC. 16. The third sentence of subsection (d) of section 220 of the Interstate Commerce Act is amended to read as follows: “The Commission or its duly authorized special agents, accountants, or examiners shall at all times have access to and authority, under its order, to inspect and examine any and all lands, buildings, or equipment of motor carriers, brokers, and lessors; and shall have authority to inspect and copy any and all accounts, books, records, memoranda, · correspondence, and other documents of such carriers, brokers, lessors, and associations (as defined in this section), and such accounts, books, records, memoranda, correspondence, and other documents of any person controlling, controlled by, or under common control with any such carrier, as the Commission deems relevant to such person's relation to or transactions with such carrier.”

Sec. 17. Subsection (e) of section 220 of the Interstate Commerce Act is amended to read as follows:

(e) As used in this section, the words 'keep' and 'kept shall be construed to mean made, prepared, or compiled, as well as retained; the term 'lessor' means a lessor of any right to operate as a motor carrier; the term ‘motor carrier', 'broker', or 'lessor' includes a receiver or trustee of any such motor carrier, broker, or lessor; and the term 'association' means an association or organization main. tained by or in the interest of any group of motor carriers or brokers subject to this part.”

SEC. 18. (a) That the third sentence of subsection (a) of section 221 of the Interstate Commerce Act is amended by striking out the word "registered.”

(b) The last sentence of such subsection (a) is amended to read as follows: "In proceedings before the Commission involving the lawfulness of rates, fares, charges, classifications, or practices, service of notice of the suspension of a tariff or schedule upon an attorney in fact of a carrier who has filed said tariff or schedule in behalf of such carrier naming the rates, fares, charges, classifications, or practices involved in such proceedings shall be deemed to be due and sufficient service upon the carrier and service of notice of the suspension of a joint tariff or schedule upon a carrier which has filed said joint tariff to which another carrier is a party naming the rates, fares, charges, classifications, or practices involved in such proceedings shall be deemed to be due and sufficient service upon the several carriers parties thereto, but such manner of service shall not be considered as excluding service in any other manner authorized by law."

Sec. 19. Section 222 of the Interstate Commerce Act is amended by adding at the end thereof the following new paragraph :

“(h) Any motor carrier, broker, or lessor, or other person, or any officer, agent, employee, or representative thereof, who shall fail or refuse to keep, preserve, or forward any account, record, or memorandum in the substance, form, or manner prescribed in this part or in any rule, order, or regulation prescribed under this part; or who shall fail or refuse to comply with any requirement of this part with respect to the filing with this Commission or with any agency, office, or representative of the Commission, as prescribed by the Commission, any annual, periodical, or special report, or other report, tariff, schedule, contract, document, or data or with any rule, order, or regulation prescribed with respect to such filing; or who shall fail or refuse to make full, true, or correct answer to any question required by the Commission to be made under the provisions of this part; shall forfeit to the United States the sum of $100 for each such offense, and, in case of a continuing violation, not to exceed $50 for each additional day during which such failure or refusal shall continue. All forfeitures provided for in this paragraph shall be payable into the Treasury of the United States and shall be recoverable in a civil suit in the name of the United States, brought in the district where the motor carrier or broker has its principal office, or in any district in which such motor carrier or broker was, at the time of the offense, authorized by this Commission, or by this part, to engage in operation as such motor carrier or broker; or in any district where such forfeiture may accrue; or in the district where the offender is found. All process in any such case may be served in the judicial district whereof such offender is an inhabitant or wherever he may be found. It shall be the duty of the various district attorneys under the direction of the Attorney General of the United States to prosecute for the recovery of such forfeitures. The costs and expense of such prosecution shall be paid out of the appropriation for the expenses of the courts of the United States."

SEC. 20. The first two sentences of subsection (a) of section 313 of the Interstate Commerce Act are amended to read as follows:

“(a) The Commission is hereby authorized to require annual, periodical, or special reports from water carriers, lessors, and associations (as defined in this section), and to prescribe the manner and form in which such reports shall be made, and to require from such carriers, lessors, and associations specific and

ull, true, and correct answers to all questions upon which the Commission may deem information to be necessary. Such annual reports shall give an account of the affairs of the carrier, lessor, or association in such form and detail as may be prescribed by the Commission.”

SEC. 21. The first sentence of subsection (f) of section 313 of the Interstate Commerce Act is amended by inserting after “lessors" the following: "and of associations (as defined in this section),”.

SEC. 22. Subsection (h) of section 313 of the Interstate Commerce Act is amended to read as follows:

“(h) As used in this section, the words 'keep' and kept shall be construed to mean made, prepared, or compiled, as well as retained; the term 'lessor' means a lessor of any right to operate as a water carrier; the term 'water carrier' or 'lessor' includes a receiver or trustee of such water carrier or lessor; and the term 'association' means an association or organization maintained by or in the interest of any group of water carriers subject to this part.”

SEC. 23. (a) That the third sentence of subsection (a) of section 315 of the Interstate Commerce Act is amended by striking out the word “registered”.

(b) The last sentence of such subsection (a) is amended to read as follows: “In proceedings before the Commission involving the lawfulness of rates, fares, charges, classifications, or practices, service of notice of the suspension of a tariff or schedule upon an attorney in fact of a carrier who has filed a said tariff or schedule in behalf of such carrier naming the rates, fares, charges, classifications, or practices involved in such proceedings shall be deemed to be due and sufficient service upon the carrier and service of notice of the suspension of a joint tariff or schedule upon a carrier which has filed said joint tariff to which another carrier is a party naming the rates, fares, charges, classifications, or practices involved in such proceedings shall be deemed to be due and sufficient service upon the several carriers parties thereto, but such manner of service shall not be considered as excluding service in any other manner authorized by law."

SEC. 24. (a) Subsection (c) of section 411 of the Interstate Commerce Act is amended to read as follows:

"(c) After July 1, 1947, it shall be unlawful for any director, officer, employee, or agent of any common carrier subject to part I, II, or III of this Act or of any person controlling, controlled by, or under common control with such a common carrier, in his or their own personal pecuniary interest, to own, lease, control, or hold stock in, any freight forwarder, directly or indirectly, unless such ownership, lease, control, or holding shall have been authorized by order of the Commission, upon due showing, in form and manner prescribed by the Commission, that neither public nor private interests will be adversely affected thereby; but this subsection shall not forbid or preclude the holding of a director's qualifying shares of stock from which no personal pecuniary benefit is derived by the holder.”

(b) Section 411 is further amended by adding at the end thereof the following new paragraph :

“(h) Except as otherwise provided in subsections (c) and (g) of this section

(1) It shall be lawful, with the approval and authorization of the Commission, for two or more freight forwarders to consolidate or merge their properties or franchises, or any part thereof, into one corporation for the ownership, management, and operation of the properties theretofore in separate ownership; or for any freight forwarder, or two or more freight forwarders jointly, to purchase, lease, or contract operate the properties, or any part thereof, of another; or for any freight forwarder, or two or more freight forwarders jointly, to acquire control of another through ownership of its stock or otherwise; or for a person, which is not a feight forwarder, to acquire control of two or more freight forwarders through ownership of their stock or otherwise; or for a person which is not a freight forwarder and which has control of one or more freight forwarders to acquire control of another freight forwarder through ownership of its stock or otherwise.

(2) Whenever a transaction is proposed under this subsection the freight forwarder or freight forwarders or person seeking authority therefor shall present an application to the Commission, and thereupon the Commission shall investigate and determine such application under the procedure provided in section 5 (2) (b), (c), and (e) with respect to transactions under section 5 (2) (a).

(3) Whenever a person which is not a common carrier subject to part I, II, or III of this Act, or a person controlling such a common carrier, is authorized by an order entered under this subsection to acquire control of any freight forwarder, or of two or more freight forwarders, such person thereafter shall, to the extent provided by the Commission in such order, be considered as a freight forwarder subject to such of the provisions in section 412 of this part as are applicable to any freight forwarder involved in such acquisition of control. :"(4) It shall be unlawful for any person, except as provided in this subsection, to enter into any transaction within the scope of paragraph (1) hereof, or to accomplish or effectuate, or to participate in accomplishing or effectuating, the control or management in a common interest of any two or more freight forwarders, however such result is attained, whether directly or indirectly, by use of common directors, officers, or stockholders, ą holding or investment company or companies, a voting trust or trusts or any other manner whatsoever. It shall be unlawful to continue to maintain control or management accomplished or effectuated after the enactment of this amendatory subsection and in violation of its provisions. As used in this paragraph, the words 'control or managemenť shall be construed to include the power to exercise control or management.

“(5) For the purposes of this subsection, but not in anywise limiting the application of the provisions thereof, any transaction shall be deemed to accomplish or effectuate the control or management in a common interest of two freight forwarders

(a) if such transaction is by a freight forwarder, and if the effect of such transaction is to place such freight forwarder and persons affiliated with it, taken together, in control of another freight forwarder;

“(b) if such transaction is by a person affiliated with a freight forwarder, and if the effect of such transaction is to place such freight forwarder and persons affiliated with it, taken together, in control of another freight forwarder ;

"(c) if such transaction is by two or more persons acting together, one of whom is a freight forwarder or is affiliated with a freight forwarder, and if the effect of such transaction is to place such persons and freight forwarders and persons affiliated with any one of them and persons affiliated with any such affiliated freight forwarder, taken together, in control of

another freight forwarder. "(6) For the purposes of this subsection (h), the provisions of section 5 (6) with respect to affiliated persons, section 5 (7), 5 (8), and 5 (9) with respect to investigations, penalties, jurisdiction of courts, and orders, and of section 5 (11) defining the scope of the authority conferred, shall apply to transactions, freight forwarders, and persons included in the provisions of this subsection."

SEC. 25. The first two sentences of subseetion (a) of section 412 of the Interstate Commerce Act are amended to read as follows:

"(a) For purposes of administration of the provisions of this part, the Commission is hereby authorized to require annual, periodical, or special reports from freight forwarders and associations (as defined in this section), and to prescribe the manner and form in which such reports shall be made, and to require from such forwarders and associations specific, full, true, and correct answers to all questions upon which the Commission may deem information to be necessary. Such annual reports shall give an account of the affairs of the freight forwarder or association in such form and detail as may be preseribed by the Commission.

SEC. 26. The first sentence of subsection (d) of section 412 of the Interstate Commerce Act is amended by inserting after the words “documents of freight forwarders” the following: "and of associations (as defined in this section),”.

SEC. 27. Subsection (f) of section 412 of the Interstate Commerce Act is amended to read as follows:

"" (f) As used in this section the words ‘keep' and 'kept shall be construed to mean made, prepared, or compiled, as well as retained; and the term "association' means an association or organization maintained by or in the interest of any group of freight forwarders subject to this part."

[S. 2426, 80th Cong., 2d sess.)

A BILL To amend the Interstate Commerce Act, as amended

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That paragraph (5) of section 1 of the Interstate Commerce Act, as amended, is amended by striking out “(a)”; and is further amended by striking out “(b)” and inserting in lieu thereof “(542)".

SEC. 2. (a) The first sentence of paragraph (2) of section 3 of the Interstate Commerce Act, as amended, is amended to read as follows:

“(2) No carrier by railroad and no express company subject to the provisions of this part shall deliver or relinquish possession at deştipation of any freight or express shipment transported by it until all tariff and charges thereon have been paid, except under such rules and regulations as the Commission may from time to time prescribe to govern the settlement of all such rates and charges and to prevent unjust diserimination: Provided, that the provisions of this paragraph shall not be construed to prohibit any carrier or express company

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