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Increasing penalties for violation of certain safety and other statutes administered by the Interstate Commerce Commission.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Safety Interstate Appliance Acts, as amended (45 U. S. C. 1–16), are amended as fol- Penalties. lows:

(1) By striking in the first clause of section 6 of the Act of March 2, 1893 (27 Stat. 532), as amended (45 U. S. C. 6), the words "one hundred dollars" and substituting in lieu thereof the words "two hundred and fifty dollars"; and

(2) By striking in the first clause of section 4 of the Act of April 14, 1910 (36 Stat. 299; 45 U. S. C. 13), the words "one hundred dollars" and substituting in lieu thereof the words "two hundred and fifty dollars".

SEC. 2. Section 3 of the Hours of Service Act (34 Stat. 1416), as amended (45 U. S. C. 63), is amended by striking in the first clause of the first sentence thereof the amount of "$100” and substituting therefor the amount of "$200".

SEC. 3. Section 9 of the Locomotive Inspection Act (36 Stat. 916), as amended (45 U. S. C. 34), is amended by striking in the first clause thereof the words "one hundred dollars" and substituting therefor the words "two hundred and fifty dollars”.

SEC. 4. Section 222 of the Interstate Commerce Act (49 Stat. 564), as amended (49 U. S. C. 322), is amended as follows:

(1) By striking in the first sentence of subsection (a) thereof the words "not more than $100 for the first offense and not more than $500 for any subsequent offense.", and substituting therefor the words "not less than $100 nor more than $500 for the first offense and not less than $200 nor more than $500 for any subsequent offense.", "and

(2) By striking in subsection (c) thereof the words "not more than $500 for the first offense and not more than $2,000 for any subsequent offense." and substituting therefor the words "not less than $200 nor more than $500 for the first offense and not less than $250 nor more than $2,000 for any subsequent offense.".

Approved August 14, 1957.

merce.

27 Stat. 531,

85th Congress, H. R. 3775

August 16, 1957

AN ACT

To amend section 20b of the Interstate Commerce Act in order to require the Interstate Commerce Commission to consider, in stock modification plans, the assents of controlled or controlling stockholders, and for other purposes.

Interstate Commeroe
Commission.

Be it enacted by the Senate and House of Representatives of the, United States of America in Congress assembled, That paragraph (2) of section 20b of the Interstate Commerce Act, as amended (49 U. S. C. Railroad securities. 20b (2)), is amended by striking out the fifth and sixth sentences and 62 Stat. 163. inserting in lieu thereof the following: "The Commission shall have the power to make such general rules and regulations and such special requirements in any particular case in respect to the solicitation of assents, opposition, assurances of assent, acceptance, approval, or disapproval of such holders (whether such solicitation is made before or after approval of the proposed alteration or modification by the Commission), as it shall deem necessary or desirable; and no solicitation shall be made, and no letter, circular, advertisement, or other communication, or financial or statistical statement, or summary thereof, shall be used in any such solicitation, in contravention of such rules, regulations, or special requirements. The Commission may direct that the assents (and any revocations thereof) of such holders to the proposed alteration or modification shall be addressed to a bank or trust company, approved by it, which is incorporated under the laws

of the United States or any State thereof, and which has a capital and 71 Stat. 369.
surplus of at least $2,000,000, and is a member of the Federal Reserve 71 Stat. 370.
System. Any bank or trust company so approved shall certify to the
Commission the result of such submission and the Commission may,
in its discretion, rely upon such certification as conclusive evidence in
determining the result of such submission. If the Commission shall
find that as a result of such submission the proposed alteration or
modification has been assented to by the holders of at least 75 per
centum of the aggregate principal amount or number of shares out-
standing of each class of securities affected thereby (or as to any
class (i) where 75 per centum thereof is held by fewer than twenty-
five holders, or (ii) which is entitled to vote for the election of direc-
tors of the carrier and the assents of the holders of 25 per centum or
more thereof are determined by the Commission to be within the con-
trol of the carrier or of any person or persons controlling the carrier,
such larger percentage, if any, as the Commission may determine to be
just and reasonable and in the public interest), the Commission shall
enter an order approving and authorizing the proposed alteration or
modification upon the terms and conditions and with the amendments,
if any, so determined to be just and reasonable."

feated by

alteration.
62 Stat. 165.

SEC. 2. Paragraph (3) of section 20b of the Interstate Commerce Securities afAct, as amended (49 U. S. C., sec. 20b (3)), is amended by striking out the last sentence and inserting in lieu thereof the following: "For the purposes of this section a security (other than a security entitled to vote for the election of directors of the carrier) or an evidence of indebtedness shall not be deemed to be outstanding if, in the deter

71 Stat. 370.

Effective date.

mination of the Commission, the assent of the holder thereof to any proposed alteration or modification is within the control of the carrier or of any person or persons controlling the carrier. The Commission shall, for the purposes of this section, divide the securities to be affected by any proposed alteration or modification into such classes as it shall determine to be just and reasonable.".

SEC. 3. The amendments made by this Act shall take effect on the first day of the fourth month following the month in which this Act is enacted.

Approved August 16, 1957.

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To revise the definition of contract carrier by motor vehicle as set forth in section 203 (a) (15) of the Interstate Commerce Act, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That part II of the Interstate Com Interstate Commerce Act, as amended, is amended as follows:

шегое.

(1) By changing paragraph (15) of section 203 (a) thereof (49 "Contract oarU.S. C. 303 (a) (15)), to read as follows:

"(15) The term 'contract carrier by motor vehicle' means any person which engages in transportation by motor vehicle of passengers or property in interstate or foreign commerce, for compensation (other than transportation referred to in paragraph (14) and the exception therein), under continuing contracts with one person or a limited number of persons either (a) for the furnishing of transportation services through the assignment of motor vehicles for a continuing period of time to the exclusive use of each person served or (b) for the furnishing of transportation services designed to meet the distinct need of each individual customer."

(2) By adding to section 203 (49 U. S. C. 303), the following new subsection:

rier."
54 Stat. 920.

"(c) Except as provided in section 202 (c), section 203 (b), in the Certificate exception in section 203 (a) (14), and in the second proviso in section or permit. 206 (a) (1), no person shall engage in any for-hire transportation business by motor vehicle, in interstate or foreign commerce, on any public highway or within any reservation under the exclusive jurisdiction of the United States, unless there is in force with respect to such person a certificate or a permit issued by the Commission authorizing such transportation."; and

(3) By adding to section 212 (49 U. S. C. 312), the following new subsection:

"(c) The Commission shall examine each outstanding permit and may within one hundred and eighty days after the date this subsection takes effect institute a proceeding either upon its own initiative, or upon application of a permit holder actually in operation or upon complaint of an interested party, and after notice and hearing revoke a permit and issue in lieu thereof a certificate of public convenience and necessity, if it finds, first, that any person holding a permit whose operations on the date this subsection takes effect do not conform with the definition of a contract carrier in section 203 (a) (15) as in force on and after the date this subsection takes effect; second, are those of a common carrier; and, third, are otherwise lawful. Such certificate so issued shall authorize the transportation, as a common carrier, of the same commodities between the same points or within the same territory as authorized in the permit."

SEC. 2. Part II of such Act is further amended (1) by inserting after the second sentence of section 209 (b) (49 U. S. C. 309 (b)) a 49 Stat. 552.` new sentence to read as follows: "In determining whether issuance of a permit will be consistent with the public interest and the national transportation policy declared in this Act, the Commission shall consider the number of shippers to be served by the applicant, the nature of the service proposed, the effect which granting the permit would have upon the services of the protesting carriers and the effect which denying the permit would have upon the applicant and/or its shipper and the changing character of that shipper's requirements."; and (2) by changing the third sentence of section 209 (b) (49 U. S. C.

Terms, oonditions, and limitations.

71 Stat. 412.

309 (b)) to read as follows: "The Commission shall specify in the permit the business of the contract carrier covered thereby and the scope thereof, and it shall attach to it at the time of issuance, and from time to time thereafter, such reasonable terms, conditions, and limitations, consistent with the character of the holder as a contract carrier, including terms, conditions and limitations respecting the person or persons and the number or class thereof for which the contract carrier may perform transportation service, as may be necessary to assure that the business is that of a contract carrier and within the scope of the permit, and to carry out with respect to the operation of such carrier the requirements established by the Commission under section 204 (a) (2) and (6): Provided, That within the scope of the permit and any terms, conditions or limitations attached thereto, the carrier shall have the right to substitute or add to its equipment and facilities as the development of its business may require: Provided further, That no terms, conditions or limitations shall be imposed in any permit issued on or before the effective date of this proviso which shall restrict the right of the carrier to substitute similar contracts within the scope of such permit; or to add contracts within the scope of such permit unless upon investigation on its own motion or petition of an interested carrier the Commission shall find that the scope of the additional operations of the carrier is not confined to those of a contract carrier as defined in section 203 (a) (15), as in force on and after the effective date of this proviso."

Approved August 22, 1957.

Freight forwarder per

mits.

56 Stat. 291. 49 USC 1010.

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Amending section 410 of the Interstate Commerce Act, to change the requirements for obtaining a freight forwarder permit.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (d) of section 410 of the Interstate Commerce Act, as amended, is amended to read as follows:

"(d) The Commission shall not deny authority to engage in the whole or any part of the proposed service covered by any application made under this section by a corporation controlled by, or under common control with, a common carrier subject to part I of this Act solely on the ground that such service will be in competition with the service subject to this part performed by any other freight forwarder or freight forwarders."

Approved August 28, 1957.

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