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. Monetary Control Act

    Title 1 of a two-title act passed in 1980 that represented the ...
  3. Commodity Exchange Act - CEA

    An act passed in 1936 by the U.S. Government that provides federal ...
  4. Energy And Commerce Committee

    A established by in 1975 by the United States House of Representatives ...
  5. Carmack Amendment

    An amendment to the Interstate Commerce Act of 1877 that limits ...
  6. The Jones Act

    Legislation that regulates maritime commerce between U.S. cities. ...
Related Articles
  1. Personal Finance

    A Primer On The Railroad Sector

    The railroad industry might seem antiquated, but it remains an important service that reaches all corners of the country.
  2. Stock Analysis

    The Rail Industry Rolls Through Earnings

    First-quarter results for the broad rail industry speaks volumes about how solid the group is as a long-term play.
  3. Stock Analysis

    Time To Invest In Railroad Stocks

    Short-term traders may not want to look at the rails. But the long-term picture remains solid due to the economic advantages that rails possess over trucking.
  4. Investing

    These Stocks Rose An Average Of 500% -- Is The Bubble About To Burst?

    <p>The five-year bull market, which has seen the S&amp;P 500 rise more than 200% since the March 2009 low, boosted share prices in virtually...
  5. Stock Analysis

    Does CSX Have The Most Levers To Pull In 2012?

    CSX has all of the perks of U.S. rail and a few extra as well.
  6. Stock Analysis

    Wabtec Winning On The Rails

    Wabtec is a great play on a global trend.
  7. Stock Analysis

    Buffett's Long-Term Bet On Rails

    Buffett's $44 billion bet on BNI assumes that the "country's future prosperity depends on an efficient and well-maintained rail system."
  8. Investing Basics

    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.
  9. Stock Analysis

    Pay Attention To This Economic Bellwether

    An accelerating economy and recent freight volume growth means that savvy investors should pay more than a little attention to the railroad industry.
  10. Economics

    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.
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 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 >>
  3. 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 >>
  4. Why should I invest in the railroads sector?

    Reap the benefits of the railroad sector's advantages over its competitors by adding companies in this industry to your investment ... Read Answer >>
  5. What are examples of popular companies in the railroads sector?

    Discover some of the most popular railroad company stocks within the transportation sector, and learn about the top companies ... Read Answer >>
  6. What are the most popular mutual funds that give exposure to the railroads sector?

    Investing in sector-specific mutual funds, such as transportation funds that include railroad company stock, can be a smart ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center