Sec. 3 -erroneous information signor liable. theless be liable for such additional charges. If the shipper or consignor has given to the delivering carrier erroneous information as to who the beneficial owner is, such shipper or consignor shall himself be liable for such makes contransportation charges, notwithstanding the foregoing provisions of this paragraph and irrespective of any provisions to the contrary in the bill of lading or in the contract of transportation under which the shipment was made. An action for the enforcement of such liability either against the party to whom delivery is made or the shipper or consignor may be begun within the period provided in paragraph (3) of section 16, or before the expiration of six months after final judgment against the carrier in an action against either of such parties begun. within the limitation period provided in paragraph (3) of section 16. The term "delivering carrier" means the "Delivering line-haul carrier making ultimate delivery. Limitation of action to en force liability. carrier" defined. interchange (4) All carriers subject to the provisions of this part 54 Stat. 903. shall, according to their respective powers, afford all reasonable, proper, and equal facilities for the interchange Facilities for of traffic between their respective lines and connecting of traffic. lines, and for the receiving, forwarding, and delivering of passengers or property to and from connecting lines; prohibited. and shall not discriminate in their rates, fares, and Discrimination charges between connecting lines, or unduly prejudice any connecting line in the distribution of traffic that is not specifically routed by the shipper. As used in this 54 Stat. 904. paragraph the term "connecting line" means the connecting line of any carrier subject to the provisions of this part or any common carrier by water subject to part III. NOTE. Comparable provision under part III, § 305 (d); as to freight forwarders, part IV, § 404 (c). "Connecting, line" defined. Commission may require common use of terminals. (5) If the Commission finds it to be in the public 54 Stat. 904. interest and to be practicable, without substantially impairing the ability of a common carrier by railroad owning or entitled to the enjoyment of terminal facilities to handle its own business, it shall have power by order to require the use of any such terminal facilities, including main-line track or tracks for a reasonable distance outside of such terminal, of any common carrier by railroad, by another such carrier or other such carriers, on such terms and for such compensation as the carriers Secs. 3-4 Fixation of terms and compensation. Recovery of damages by carrier whose facilities are used. 24 Stat. 380. 36 Stat. 547. 41 Stat. 480. 49 Stat. 543. 54 Stat. 904. 71 Stat. 292. Long-and-shorthaul provision. affected may agree upon, or, in the event of a failure to agree, as the Commission may fix as just and reasonable for the use so required, to be ascertained on the principle controlling compensation in condemnation proceedings. Such compensation shall be paid or adequately secured before the enjoyment of the use may be commenced. If under this paragraph the use of such terminal facilities of any carrier is required to be given to another carrier or other carriers, and the carrier whose terminal facilities are required to be so used is not satisfied with the terms fixed for such use, or if the amount of compensation so fixed is not duly and promptly paid, the carrier whose terminal facilities have thus been required to be given to another carrier or other carriers shall be entitled to recover, by suit or action against such other carrier or carriers, proper damages for any injuries sustained by it as the result of compliance with such requirement, or just compensation for such use, or both, as the case may be. LONG AND SHORT HAUL CHARGES; COMPETITION WITH SEC. 4. [As amended June 18, 1910, February 28, 1920, (1) It shall be unlawful for any common carrier subject to this part or part III to charge or receive any greater compensation in the aggregate for the transportation of passengers, or of like kind of property, for a shorter than for a longer distance over the same line or route in the same direction, the shorter being included within the longer distance, or to charge any greater compensation as a through rate than the aggregate of the intermediate rates subject to the provisions of this part or part III, but this shall not be construed as authorizing any common carrier within the terms of this part or part III to charge or receive as great compensation for a shorter as for a longer distance: Provided, That upon Relief, by Com- application to the Commission and after investigation, such carrier, in special cases, may be authorized by the Commission to charge less for longer than for shorter distances for the transportation of passengers or property, and the Commission may from time to time pre mission, from operation of section. 71 Stat. 292. Sec. 4 -compensa scribe the extent to which such designated carriers may be relieved from the operation of the foregoing provisions of this section, but in exercising the authority conferred upon it in this proviso, the Commission shall not permit the establishment of any charge to or from the more distant point that is not reasonably compensatory tory rates. for the service performed; and no such authorization shall be granted on account of merely potential water competition not actually in existence: Provided further, That any such carrier or carriers operating over a circuitous line or route may, subject only to the standards of lawfulness set forth in other provisions of this part or part III and without further authorization, meet the charges of such carrier or carriers of the same type operating over a more direct line or route, to or from the competitive points, provided that rates so established over circuitous routes shall not be evidence on the issue of the compensatory character of rates involved in other proceedings: And provided further, That tariffs proposing rates subject to the provisions of this paragraph requiring Commission authorization may be filed when application is made to the Commission under the provisions hereof, and in the event such application is approved, the Commission shall permit such tariffs to become effective upon one day's notice. Meeting charges of carriers of direct line, same type over route. when applica tion approved. Effective date (2) Wherever a carrier by railroad shall in competition with a water route or routes reduce the rates on the 41 Stat. 480. carriage of any species of freight to or from competitive points it shall not be permitted to increase such rates unless after hearing by the Commission it shall be found that such proposed increase rests upon changed conditions other than the elimination of water competition. NOTE.-The following paragraph is paragraph (b) of section 6 of the Transportation Act of 1940, approved September 18, 1940. Paragraph (a) of section 6 amends section 4 (1) of the Interstate Commerce Act to read as above stated. Paragraph (b) is not in terms an amendment of'section 4 (1), but is inserted here as enacted. "(b) In the case of a carrier heretofore subject to the provisions of paragraph (1) of section 4 of the Interstate Commerce Act, as amended, no rate, fare, or charge lawfully in effect at the time of the enactment of this Act shall be required to be changed by reason of the amendments made to such paragraph Rates reduced competition not Commission. to meet water raised without 54 Stat. 904. 49 U. S. C. 4, note. Saving clause, rates lawfully in effect. Secs. 4-5 -carriers under part III, continuance pending action. 24 Stat. 380. 37 Stat. 566. 41 Stat. 480. 48 Stat. 217. 48 Stat. 1080. 49 Stat. 543. 54 Stat. 905. 63 Stat. 485. Pooling of freight and division of earnings forbidden. Approval by Contracts of water carriers continued, pending finding by Commission. by subsection (a) of this section. In the case of a carrier not heretofore subject to the provisions of such paragraph, no rate, fare, or charge lawfully in effect at the time of the enactment of this Act shall be required to be changed, by reason of the provisions of such paragraph, as amended by subsection (a) of this section, prior to six months after the enactment of this Act, or in case application for the continuance of any such existing rate, fare, or charge is filed with the Interstate Commerce Commission within such six months period, until the Commission has acted upon such application." COMBINATIONS AND CONSOLIDATIONS OF CARRIERS SEC. 5. [As amended August 24, 1912, February 28, 1920, June 10, 1921, June 16, 1933, June 19, 1934, August 9, 1935, September 18, 1940, and August 2, 1949.] [49 U.S. C. §5.] (1) Except upon specific approval by order of the Commission as in this section provided, and except as provided in paragraph (16) of section 1 of this part, it shall be unlawful for any common carrier subject to this part, part II, or part III to enter into any contract, agreement, or combination with any other such common carrier or carriers for the pooling or division of traffic, or of service, or of gross or net earnings, or of any portion thereof; and in any case of an unlawful agreement for the pooling or division of traffic, service, or earnings as aforesaid each day of its continuance shall be a separate offense: Provided, That whenever the Commission is of opinion, after hearing upon application of any such carrier or carriers or upon its own initiative, that the pooling or division, to the extent indicated by the Commission, of their traffic, service, or gross or net earnings, or of any portion thereof, will be in the interest of better service to the public or of economy in operation, and will not unduly restrain competition, the Commission shall by order approve and authorize, if assented to by all the carriers involved, such pooling or division, under such rules and regulations, and for such consideration as between such carriers and upon such terms and conditions, as shall be found by the Commission to be just and reasonable in the premises: Provided further, That any contract, agreement, or combination to which any common carrier by water subject to part III is a party, relating to the pooling or division of traffic, service, or earnings, or any portion thereof, lawfully existing on the date this paragraph as amended takes effect, if filed with the Commission within six months after such date, shall continue to be lawful except to the extent that the Commission, after hearing upon application or upon its own initiative, may find and by order declare that such contract, agreement, or combination is not in the interest of better service to the public or of economy in operation, or that it will unduly restrain competition. NOTE.-Pooling agreements subject to § 5 (1) not to be approved under § 5a, see § 5a (5). Authorization of pooling of traffic in reorganization of railroads, Bankruptcy Act, § 77 (f), 11 U. S. C. § 205 (f), infra. Sec. 5 (2) (a) It shall be lawful, with the approval and au- 54 Stat. 905. thorization of the Commission, as provided in subdivi sion (b)— or merger of carriers. Joint acquisi tion, lease, (i) for two or more carriers to consolidate or Consolidation 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 carrier, or two or more carriers jointly, to purchase, lease or or contract. contract to operate the properties, or any part thereof, of another; or for any carrier, or two or more carriers jointly, to acquire control of another through ownership of its stock or otherwise; or for a person which is not a carrier to acquire control of two or more carriers through ownership of their stock or otherwise; or for a person which is not a carrier and which has control of one or more carriers to acquire control of another carrier through ownership of its stock or otherwise; or (ii) for a carrier by railroad to acquire trackage rights over, or joint ownership in or joint use of, any railroad line or lines owned or operated by any other such carrier, and terminals incidental thereto. NOTE. "Control" defined, § 1 (3) (b), for purposes of § 5. Exception, contracts for joint ownership, joint use of spur, industrial, team, switching or side tracks, § 1 (18). Transfer of certificate or permit authorized, under part II (except as provided in § 5), § 212 (b); part III, § 312; part IV, } 410 (g). Temporary authority, pending proceedings upon application, part II, § 210a (b); part III, § 311 (b). Acquisition of control by noncarrier. Trackage or railroads. joint rights, |