Modern Railway Transportation Act

Modern Railway Transportation Act - A bill to amend part I of the Interstate Commerce Act in order to revise the procedures for the abandonment of railroad lines, and for the establishment or revision of rates fares and charges for the transportation of property by common carriers by railroad.

Gives railway management the unilateral right to abandon unproductive branch lines. Provides that if abandonment is desired the railway must give 90 days' notice to the public and the Secretary of Transportation. Directs that upon receipt of such notice the Secretary of Transportation may stay the abandonment of that facility, with or without a hearing, if he determines that the continued operation of that line is essential to the national economy, the regional economy, or the national defense. Provides that in the event that he stays the abandonment, the Department of Transportation shall reimburse the carrier for all out-of-pocket losses incurred in the operation of such line during the period of the stay. Provides that no employee's employment shall be terminated as a result of the abandonment except by attrition.

Divests the Interstate Commerce Commission of all ratemaking authority. Allows each carrier to establish its own rates in the competitive market structure subject to the following limitations: (1) there shall be no rate discrimination as to the identity of the shipper, the direction in which the shipment moves, or the value of the cargo; (2) there shall be no rebates made to any shippers; and (3) there shall be no agreements between carriers with respect to rates or charges.

Permits rates to be based upon the weight and cubic volume of the shipment, the need for special equipment or special switching, the distance traveled and whether the cargo was general meruchandise or a bulk commodity. Provides that rates could also be lowered for unit train shipments and multiple car shipments.

Provides that the Secretary of Transportation shall administer the provisions of this Act and shall issue such regulation as may be necessary.