Sec. 20 upon declared or required. Effect of declara as to value. Schedules to refer to order. stock defined. isting law pre Rates dependent required by order of the Interstate Commerce Commisvalue, authorized sion to establish and maintain rates dependent upon the value declared in writing by the shipper or agreed upon in writing as the released value of the property, in which case such declaration or agreement shall have no other tion or agrement effect than to limit liability and recovery to an amount not exceeding the value so declared or released, and shall not, so far as relates to values, be held to be a violation of section 10 of this part to regulate commerce, as amended; and any tariff schedule which may be filed with the Commission pursuant to such order shall contain specific reference thereto and may establish rates varying with the value so declared and agreed upon; and the Commission is hereby empowered to make such order in cases where rates dependent upon and varying with declared or agreed values would, in its opinion, be just and reasonable under the circumstances and conditions Ordinary live surrounding the transportation. The term "ordinary livestock" shall include all cattle, swine, sheep, goats, horses, and mules, except such as are chiefly valuable for breeding, racing, show purposes, or other special uses: Rights under ex- Provided further, That nothing in this section shall deprive any holder of such receipt or bill of lading of any remedy or right of action which he has under the existing law: Provided further, That all actions brought under and by virtue of this paragraph against the delivering carrier shall be brought, and may be maintained, if in a district court of the United States, only in a district, and if in a State court, only in a State, through or into which the defendant carrier operates a line of railroad: claims and insti- Provided further, That it shall be unlawful for any such receiving or delivering common carrier to provide by rule, contract, regulation, or otherwise a shorter period for the filing of claims than nine months, and for the institution of suits than two years, such period for institution of suits to be computed from the day when notice in writing is given by the carrier to the claimant that the carrier has disallowed the claim or any part or parts 44 Stat. L. 1448. thereof specified in the notice: And provided further, That for the purposes of this paragraph and of paragraph (12) the delivering carrier shall be construed to be the carrier performing the line-haul service nearest to the point of destination and not a carrier performing merely a switching service at the point of destination: And pro served. Venue. Time for filing tuting suits. Delivering carrier defined. Sec. 20a vided further, That the liability imposed by this para- 44 Stat. L. 835. graph shall also apply in the case of property reconsigned Liability in event or diverted in accordance with the applicable tariffs filed of reconsignment. as in this part provided. tial or delivering other carriers. (12) That the common carrier, railroad, or transpor- 44 Stat. L. 1448. tation company issuing such receipt or bill of lading, or Recourse of indelivering such property so received and transported, carrier upon shall be entitled to recover from the common carrier, railroad, or transportation company on whose line the loss, damage, or injury shall have been sustained, the amount of such loss, damage, or injury as it may be required to pay to the owners of such property, as may be evidenced by any receipt, judgment, or transcript thereof. SECURITIES OF CARRIERS; ISSUANCE, ETC. SEO. 208. [Added February 28, 1920, as amended Au- 41 Stat. L. 494. gust 9, 1935.] [U. S. Code, title 49, sec. 20a.]1 (1) That curity issues by 66 as used in this section the term carrier means a com railroads mon carrier by railroad (except a street, suburban, or interurban electric railway which is not operated as a part of a general steam railroad system of transportation) which is subject to this part, or any corporation Carriers subject organized for the purpose of engaging in transportation by railroad subject to this part. 2 to section. thorized securities prohibited. (2) From and after one hundred and twenty days Issuance of unauafter this section takes effect it shall be unlawful for any carrier to issue any share of capital stock or any bond or other evidence of interest in or indebtedness of the carrier (hereinafter in this section collectively termed “securities") or to assume any obligation or liability as "Securities" de lessor, lessee, guarantor, indorser, surety, or otherwise, fined. in respect of the securities of any other person, natural sumption of liaor artificial, even though permitted by the authority creating the carrier corporation, unless and until, and then only to the extent that, upon application by the carrier, and after investigation by the Commission of the purposes and uses of the proposed issue and the pro 'Saving clause as to applicability of Securities Act of 1933, as amended, see under Saving Clauses, post. 'Paragraphs (2)-(11), inclusive, this section, including penalties, apply to common or contract carriers by motor vehicle, corporations organized for purpose of engaging in transportation as such carriers, and corporations authorized under sec. 213 (a) (1), to acquire control of one or more such carriers, sec. 214, post. Unauthorized as bility prohibited. Sec. 20a uisite to authori zation. compatibility. ceeds thereof, or of the proposed assumption of obligation or liability in respect of the securities of any other person, natural or artificial, the Commission by order Findings prereq- authorizes such issue or assumption. The Commission shall make such order only if it finds that such issue or Lawfulness and assumption: (a) is for some lawful object within its corporate purposes, and compatible with the public interest, which is necessary or appropriate for or consistent with the proper performance by the carrier of service. to the public as a common carrier, and which will not Reasonable neces impair its ability to perform that service, and (b) is reasonably necessary and appropriate for such purpose. sity and appropri ateness. Application granted in whole or part, or on terms Supplemental orders. Form and contents of application; verification. Notification as to disposition of se curities pledged (3) The Commission shall have power by its order to grant or deny the application as made, or to grant it in part and deny it in part, or to grant it with such modifications and upon such terms and conditions as the Commission may deem necessary or appropriate in the premises, and may from time to time, for good cause shown, make such supplemental orders in the premises as it may deem necessary or appropriate, and may by any such supplemental order modify the provisions of any previous order as to the particular purposes, uses, and extent to which, or the conditions under which, any securities so theretofore authorized or the proceeds thereof may be applied, subject always to the requirements of the foregoing paragraph (2). (4) Every application for authority shall be made in such form and contain such matters as the Commission may prescribe. Every such application, as also every certificate of notification hereinafter provided for, shall be made under oath, signed and filed on behalf of the carrier by its president, a vice president, auditor, comptroller, or other executive officer having knowledge of the matters therein set forth and duly designated for that purpose by the carrier. (5) Whenever any securities set forth and described or held in treas in any application for authority or certificate of notification as pledged or held unencumbered in the treasury ury. 'Applicability to common or contract carrier by motor vehicle, and operating or controlling corporations, see footnote to par. (2), ante. of the carrier shall, subsequent to the filing of such application or certificate, be sold, pledged, repledged, or otherwise disposed of by the carrier, such carrier shall, within ten days after such sale, pledge, repledge, or other disposition, file with the Commission a certificate of notification to that effect, setting forth therein all such facts as may be required by the Commission. Sec. 20a tion for author State authorities (6) Upon receipt of any such application for author- Notice of applica ity the Commission shall cause notice thereof to be given ity. to and a copy filed with the governor of each State in which the applicant carrier operates. The railroad commissions, public service or utilities commissions, or other appropriate State authorities of the State shall have the right to make before the Commission such representa- to be heard. tions as they may deem just and proper for preserving and conserving the rights and interests of their people and the States, respectively, involved in such proceeding. The Commission may hold hearings, if it sees fit, to en- Hearings upon able it to determine its decision upon the application for authority. application. jurisdiction (7) The jurisdiction conferred upon the Commission Commission's by this section shall be exclusive and plenary, and a car- plenary. rier may issue securities and assume obligations or liabilities in accordance with the provisions of this section without securing approval other than as specified herein. guaranty or obli (8) Nothing herein shall be construed to imply any No governmental guaranty or obligation as to such securities on the part gation implied. of the United States. authorization un ited issue. (9)3 The foregoing provisions of this section shall not Short-term notes, apply to notes to be issued by the carrier maturing not necessary for limmore than two years after the date thereof and aggregating (together with all other then outstanding notes of a maturity of two years or less) not more than 5 per centum of the par value of the securities of the carrier then outstanding. In the case of securities having no par value, the par value for the purposes of this paragraph shall be the fair market value as of the date of 'Applicability to common or contract carriers by motor vehicle, and operating or controlling corporations, see footnote to par. (2), ante. Sec. 208 issuance of short Notification as to issue. Within ten days after the making of such notes term notes. the carrier issuing the same shall file with the Commis sion a certificate of notification, in such form as may from time to time be determined and prescribed by the Commission, setting forth as nearly as may be the same matters as those required in respect of applications for Section applies in authority to issue other securities: Provided, That in any subsequent funding of such notes the provisions of this section respecting other securities shall apply. Reports as to disposition of securi tion of proceeds. (10) The Commission shall require periodical or speties and applica cial reports from each carrier hereafter issuing any securities, including such notes, which shall show, in such detail as the Commission may require, the disposition made of such securities and the application of the proceeds thereof. Security, obligation, or liability, ized to order of au (11) Any security issued or any obligation or liabilvoid if unauthority assumed by a carrier, for which under the provisions of this section the authorization of the Commission is required, shall be void, if issued or assumed without such authorization therefor having first been obtained, or if -or if contrary issued or assumed contrary to any term or condition of thorization- such order of authorization as modified by any order supplemental thereto entered prior to such issuance or assumption; but no security issued or obligation or liability assumed in accordance with all the terms and conditions of such an order of authorization therefor as modified by any order supplemental thereto entered prior to such issuance or assumption, shall be rendered void because of failure to comply with any provision of this sion preceding section relating to procedure and other matters preceding the entry of such order of authorization. If any security so made void or any security in respect to which the assumption of obligation or liability is so made void, is acquired by any person for value and in good faith and without notice that the issue or assumption is void, such person may in a suit or action in any court of competent Joint and several jurisdiction hold jointly and severally liable for the full liability to inno- amount of the damage sustained by him in respect thereof, the carrier which issued the security so made void, or -not void for procedural omisauthorization. cent holder of void security. 'Applicability to common or contract carriers by motor vehicle, and operating or controlling corporations, see footnote to par. (2), ante. |