A. A company or corporation operating a railroad, other than a street or electric railroad, in whole or in part within this state, shall not ask, demand or receive for first class transportation for each passenger between points within this state, on the portion of its railroad operated within this state, more than three cents per mile, until otherwise provided by law. The corporation commission may exempt any railroad from the operation of this section upon satisfactory proof that the railroad cannot earn a just and reasonable compensation for the services rendered by it to the public if not permitted to charge more than three cents per mile for the transportation of passengers within this state.

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

Terms Used In Arizona Laws 40-371

  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • Commission: means the corporation commission. See Arizona Laws 40-201
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Petty offense: A federal misdemeanor punishable by six months or less in prison. Source: U.S. Courts
  • Railroad: includes every railway, other than a street railroad, operated for public transportation of persons or property. See Arizona Laws 40-201

B. If any railroad operating within this state makes application to the commission to be exempt from the operation of this section, and the application is accompanied by an affidavit showing facts that the railroad cannot earn a just and reasonable compensation for services rendered by it to the public if not permitted to charge more than three cents per mile for the transportation of passengers within this state, then the operation of this section shall be suspended pending the hearing upon the application and until final judgment is given by the commission upon the application.

C. Any company or corporation operating a railroad, as provided in subsection A, which violates any of the provisions of this section is guilty of a petty offense. Each violation shall constitute a separate offense.