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April 15, 1999 12:59 PM, EDT

Shippers praised and railroads denounced new legislation proposed by Sen. Kay Bailey Hutchison (R-Texas) that would increase competition and make it easier for rail shippers to obtain rate relief.

The Surface Transportation Board Reauthorization and Rail Service Improvement Act is the third STB reauthorization bill proposed this year. Congress failed to reauthorize the board last year.

The measure would increase competition by codifying the STB’s 1998 decision, making it easier for shippers to obtain alternative railroad access during a service failure such as the 1997 meltdown of Union Pacific Railroad. It also would begin reforming the process used by small shippers to obtain rate relief.

The legislation places Hutchison, chairman of the Senate Surface Transportation Subcommittee, at odds with fellow Republican John McCain of Arizona.

McCain, chairman of the Commerce Committee, has joined with Senate Majority Leader Trent Lott (R-Miss.) in sponsoring a bill to reauthorize the board without any changes in rail economic policy. McCain controls what legislation clears the committee, and Lott sets the floor agenda in the Senate.

For the full story, see the April 12 print edition of Transport Topics. Subscribe today.