Railroads Appeal Shipper Ruling

The Association of American Railroads has gone to court in an attempt to overturn the board’s December 1998 decision to remove product and geographic competition as a defense against shipper complaints of excessive rates.

In an appeal filed Aug. 30 with the U.S. Court of Appeals for the Washington, D.C., Circuit, AAR called the decision “arbitrary and capricious and not supported by substantial evidence.”

“This is their third bite at the apple,” said Ed Rastatter, head of policy at the National Industrial Transportation League. “The board heard this case last year and said ‘No;’ the railroads appealed for reconsideration, and the board said ‘Hell no.’ ”