The House Judiciary Committee approved legislation to remove antitrust exemptions that have enabled monopolistic business practices by freight railroads, driving up shipping costs on everything from coal to grain to paper.

In a statement following passage of the bill, Congressional cosponsors offered this explanation:

due to dramatic consolidation, only four major Class 1 railroads carry 90% of our nation’s freight, often providing unreliable service at exorbitant fees.  The legislation, authored by Congresswoman Tammy Baldwin (D-WI), and joined by Congressmen and Earl Pomeroy (D-ND) and Rodney Alexander (R-LA), will, finally and fairly, place the rail industry under the same antitrust laws that apply to other industries, including telecommunications, energy, trucking, and aviation.  

"This is a tremendous step forward for rail customers,” said Bob Szabo, Executive Director and Counsel, CURE, a national rail customer advocacy organization. “Now both the House Judiciary Committee and the Senate Judiciary Committee have said that the railroad industry should abide by the antitrust laws like everybody else. This will ensure more rail customers access to competition and reduce the cost of electricity, food and other consumer goods for American consumers.”

A companion bill to H.R. 1650, S. 772, introduced by Sen. Herb Kohl (D-WI), Chairman of the Senate Antitrust Subcommittee, is awaiting a vote in the Senate.

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