Letter to the editor of The Washington Post
(as submitted)

 

Dear Editors:

 

Before the nation spends taxpayer money on new freight rail corridors, ("The right track for our roads" 3/26/10) the federal government first needs to address the monopoly pricing power of the railroads. Freight railroads currently are exempt from the nation's antitrust laws, and the federal agency tasked with ensuring fair pricing for rail customers without competitive alternatives has not been doing its job. The result has been unreasonably high rates for many rail customers that hurt consumers and businesses across the nation.

 

A study by the Consumer Federation of America found that the railroads' excessive rates cost consumers more than $3 billion annually in higher prices on everything from their utility bill to their groceries.

 

Pending in Congress is legislation that would remove the railroads' antitrust exemptions, ensuring greater competition and protecting consumers against monopoly pricing. Legislation would also strengthen the federal agency responsible for overseeing the railroads. Fairness and competition are two hallmarks of a strong American economy. If the railroads are to assume an even larger role in our nation's economy, then they must not be exempt from these basic tenets.

 

Sincerely,

 

Glenn English

Chairman, Consumers United for Rail Equity (CURE)