Staggers Act

DEFINITION of 'Staggers Act '

A federal law that greatly deregulated the American railroad industry. The Staggers Rail Act was passed in 1980 and was intended to replace the highly-regulated structure of the American rail shipping sytem which had existed since the passing of the Interstate Commerce Act of 1887. The Act was named after its sponsor, congressman Harley Staggers who was the chair of the House Interstate and Foreign Commerce Committee.

BREAKING DOWN 'Staggers Act '

The primary changes to the regulatory rail system under the Act included:

1. Rail carriers could charge any given rate for services unless the ICC determined no competition for such services existed.

2. Industry-wide rate adjustments were removed.

3. Access must be given by one railroad to another's rails in the case where a single railroad had "bottleneck" control of the rail traffic.

Following the Act, the studies found that the industry had both lowered costs and prices for services, favoring the future prospects of both the rail industry and its customers.

RELATED TERMS
  1. Interstate Commerce Commission ...

    A body within the U.S. Department of Congress, charged with regulating ...
  2. Deregulation

    The reduction or elimination of government power in a particular ...
  3. Free On Board - FOB

    A trade term requiring the seller to deliver goods on board a ...
  4. Monetary Control Act

    Title 1 of a two-title act passed in 1980 that represented the ...
  5. Interstate Banking

    The expansion of banking across state lines. Interstate banking ...
  6. Commodity Exchange Act - CEA

    An act passed in 1936 by the U.S. Government that provides federal ...
Related Articles
  1. Markets

    Rails Show Strength

    Despite all the doomsday news on the economy, the railroad industry continues to show increasing strength.
  2. Markets

    The Top Five Public Railroad Stocks in the U.S.

    We offer a breakdown of the seven Class I railroads in North America based on their annual revenues.
  3. Markets

    Is This The Next Big Play For Growth Investors?

    Read about how the railroads sector might perform for growth investors, and why the cyclical nature of railroads makes room for future opportunity.
  4. Markets

    September Rail Data - Coal Still Weak, Are Industrials Next?

    Is slowing industrial demand something to worry about?
  5. Markets

    Should Amtrak Be Privatized?

    This story examines whether or not Amtrak, the US consumer rail system, should be privatized in the wake of its tragic accident.
  6. Markets

    How Amtrak Works & Makes Money

    Amtrak transports 31.6 million passengers each year, but it hasn't run a profit in 45 years. Here's how the company was founded and how it makes money.
  7. Markets

    Will Weak Coal Shipments Derail Union Pacific? (CSX, NSC)

    Just as the multiyear bull market in U.S. stocks begins to display a few strands of gray hair, a handful of bellwether industries are flashing early warning signals that revenue growth and profits ...
  8. Markets

    The 2016 Infrastructure Report: 4 Ongoing Global Projects

    Discover several of the most costly infrastructure projects under construction around the world in 2016, and learn more about their intended benefits.
  9. Markets

    High-Speed Rail to Vegas: A Good Bet or Long Odds?

    The Chinese want to build a high-speed rail line from L.A. to Las Vegas. Can it work? Or do other attempts presage failure?
  10. Markets

    Union Pacific Shares Derail After 21% Profit Drop

    Despite being one of the largest rail operators in the U.S., Union Pacific no longer fits the criteria of safety.
RELATED FAQS
  1. What average annual return does the railroads sector generate?

    Calculating the average annual return of the railroad sector provides insight into the overall performance of rail companies ... Read Answer >>
  2. How does seasonality affect the railroads sector?

    Understand the effects of seasonal factors on the railroad industry and how they impact revenues and expenses for railroad ... Read Answer >>
  3. What is the railroads sector?

    The railroads sector is a major component of the transportation sector. It is comprised of companies that operate railroad ... Read Answer >>
  4. How does government regulation impact the railroads sector?

    Explore different ways that government regulation has affected the railroad sector. Learn about key laws that have been passed ... Read Answer >>
  5. What metrics can be used to evaluate companies in the railroads sector?

    Take a deeper look at some of the specific metrics that investors should rely on when evaluating companies in the railroads ... Read Answer >>
  6. What are the main factors that drive share prices in the railroads sector?

    Discover the main factors that impact the success of companies in the railroad industry and that have the greatest effect ... Read Answer >>
Trading Center